[THE AMERICAN FUNDS GROUP(R)]
NEW PERSPECTIVE FUND
1999 ANNUAL REPORT
for the year ended September 30
[cover photographs: close-up of atlast, satellite dish hovering over the
earth, chronometer]
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 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
RESULTS AT A GLANCE
(FOR THE YEAR ENDED
SEPTEMBER 30, 1999)
Average annual compound returns
ONE YEAR FIVE YEARS TEN YEARS LIFETIME
TOTAL RETURN (SINCE MARCH 13, 1973)
New Perspective Fund +38.4% +19.0% +15.0% +15.4%
Morgan Stanley Capital
International Indexes:/1/
World Index +29.9% +16.4% +10.6% +14.5%
USA Index +28.1% +25.9% +17.4% +13.4%
Rank versus Lipper 42 OF 239 12 OF 91 1 OF 21 1 OF 6
global funds/2/
</TABLE>
/1/ The indexes are unmanaged.
/2/ Source: Lipper, Inc. Rankings are based on total return and do not reflect
the effects of sales charges.
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.
About our cover: John Harrison's invention of the chronometer in 1730 changed
world travel by allowing sailors to accurately calculate longitude for the
first time. Pictured is the first of his five prototypes. It is an apt symbol
for New Perspective Fund, which focuses on changes in international trade
patterns and in economic and political relationships. Today, the satellite
takes Harrison's simple timepiece to new heights.
FELLOW SHAREHOLDERS:
To rephrase an old classic, what a difference twelve months can make. In our
last report to shareholders, we noted that pessimism over Asia's difficulties
had sent stocks into a steep decline. Since then, the region has seen glimmers
of a recovery, and stock prices have bounced back smartly. New Perspective Fund
participated in the rebound.
For the 12 months ended September 30, the fund provided a remarkable gain of
38.4%, if, like most shareholders, you reinvested the two income dividends
totaling 20 cents a share and the capital gain distribution of $1.57 a share
that were paid during the year.
That was well ahead of the fund's relevant benchmarks. The unmanaged Morgan
Stanley Capital International (MSCI) World Index rose 29.9% with dividends
reinvested. The index measures 23 major stock markets, including the United
States. Meanwhile, the 239 global equity funds tracked by Lipper, Inc. gained
an average of 30.5% on a reinvested basis.
New Perspective's strong showing placed it in the top fifth of comparable funds
for the 12 months, helping it retain its first-place ranking among the six
global funds in existence over its lifetime. Rankings and returns over other
periods are shown in the table at left.
These results benefited from the timing of our reporting period. New
Perspective's fiscal year began on October 1, 1998, coinciding with what would
prove to be the low that year for most stock markets. It is worth noting that
the fund's two-year return - encompassing both the decline and subsequent rally
- - was a still healthy 18.4% a year, which is more in line with results over the
last decade.
MARKETS BOUNCE BACK
In the U.S., where New Perspective has the greatest concentration of assets,
stock prices closed the fiscal year 28.1% higher.* Consumer confidence remained
high, as the nation's economic expansion moved into its ninth vigorous year
without an appreciable rise in inflation. Still, by midsummer, worries about
the pace of growth had nudged up interest rates and pushed stock prices down
some 6.6% from July through September. Elsewhere in the Americas, markets
finished the year on a strong note. Canadian stocks appreciated 40.3%, measured
in U.S. dollars; Mexico did even better, rising 45.2%.
*All country returns are based on MSCI indexes, expressed in dollar terms and
assume reinvestment of dividends, unless otherwise indicated.
Stock prices in Europe, meanwhile, tended to be lackluster by comparison, as
governments there struggle to manage economic growth. In Germany (+6.7%) and
Italy (+12.1%), for example, high unemployment has hampered consumer spending;
the United Kingdom (+16.7%) is grappling with the opposite problem of a
possibly overheating economy and rising interest rates. Notable exceptions were
France (+30.4%), where a number of well-publicized mergers buoyed investor
confidence, and Sweden (+41.7%). Longer term, the prospects for European stocks
are encouraging. Companies are merging at record rates in an effort to be more
globally competitive, and the European Central Bank is trying to foster a more
hospitable business environment and help stimulate growth.
[Begin Sidebar]
WHERE NEW PERSPECTIVE'S
ASSETS WERE INVESTED
percent invested by country
<TABLE>
<CAPTION>
<S> <C> <C>
9/30/99 9/30/98
ASIA/PACIFIC RIM 16.5% 8.7%
Japan 10.9 5.0
Australia 2.6 2.6
Taiwan 1.6 -
South Korea 1.1 .1
New Zealand .3 .3
Hong Kong - .7
EUROPE 29.1% 32.4%
United Kingdom 8.7 6.7
Germany 5.0 5.1
France 4.1 5.8
Netherlands 3.2 2.9
Sweden 1.8 3.7
Italy 1.4 1.1
Finland 1.4 2.2
Switzerland 1.2 2.5
Spain .8 1.6
Norway .6 .2
Denmark .5 .6
Ireland .4 -
NORTH AMERICA 38.0% 40.3%
United States 31.6 34.3
Canada 4.9 4.9
Mexico 1.5 1.1
OTHER 3.5% 2.9%
CASH & EQUIVALENTS 12.9% 15.7%
100.0% 100.0%
</TABLE>
[End Sidebar]
ASIA DOMINATES
Asian stocks took center stage during the year, spurred by the region's
surprisingly rapid economic turnaround. Businesses are restructuring in an
effort to improve profitability, and governments are taking steps to enforce
accountability, particularly within their banking systems. Japan seems to be
pulling itself out of its worst recession since World War II: The first and
second quarters of 1999 were the first consecutive quarters of growth in over
two years.
In Japan, U.S. investors received an extra boost from a strengthening currency;
stock prices rose 39.0% in yen, but 77.7% when those gains were translated into
U.S. dollars. Elsewhere in the Pacific Basin, Australia rose by 24.9% and
Taiwan by 40.8%. Korea gained an astounding 244.8%, albeit from a severely
depressed base. We had been adding to our Asian investments when stock prices
were still quite low, putting New Perspective in a good position to benefit
from these strong advances.
A LOOK AT YOUR HOLDINGS
Not surprisingly, the fund's Asian investments topped the list of individual
gainers for the year, but there was broad strength throughout the portfolio.
Technology-related companies, regardless of where they are based, did
especially well. Notable among them were Samsung Electronics (+492.0%), Fujitsu
(+261.1%), Texas Instruments (+211.8%) and Micron Technology (+118.7%). New
Perspective's biggest gainer during the year was Fuji Bank (+503.9%), which has
agreed to join forces with two other Japanese banks to streamline operations
and stave off competition from foreign institutions.
[Begin Sidebar]
NEW PERSPECTIVE FUND VERSUS THE MAJOR WORLD INDEXES/1/
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
12-MONTH TOTAL RETURN LIFETIME TOTAL RETURN
WORLD'S MAJOR STOCK MARKETS/1/ (10/1/98-9/30/99) (3/13/73-9/30/99)
(in order of weighting Local Adjusted to Local Adjusted to
of the MSCI
World Index, as of currency U.S.$/2/ currency U.S.$/2/
9/30/99)
United States/3/
MSCI USA Index - 28.1% - 2,740.8%
Japan 39.0% 77.7 497.5% 1,353.8
United Kingdom 20.5 16.7 4,829.2 3,197.4
France 43.3 30.4 3,347.7 2,406.1
Germany 17.2 6.7 1,429.3 2,324.8
Switzerland 21.7 12.3 1,382.1 3,081.9
Netherlands 26.6 15.4 4,495.6 6,174.6
Canada 35.0 40.3 1,363.4 894.9
Italy 23.3 12.1 3,052.3 879.5
Spain 27.9 16.3 2,524.9 880.1
Australia 13.4 24.9 2,297.6 1,014.0
Hong Kong 61.5 61.1 1,784.2 1,136.0
Sweden 48.3 41.7 12,470.2 6,664.7
Belgium 12.7 2.6 3,460.4 3,492.7
Singapore 125.7 123.7 375.4 598.9
MSCI World Index/4/ - 29.9 - 2,038.5
NEW PERSPECTIVE FUND - 38.4% - 4,372.2%
</TABLE>
/1/All figures include the reinvestment of dividends. Returns for international
indexes are with gross dividends reinvested (i.e., without local withholdings
taxes removed).
/2/Figures adjusted to reflect foreign exchange fluctuations relative to the
U.S. dollar.
/3/United States market represented by the U.S. component of MSCI World Index;
all other markets computed by Capital International Perspective S.A. and
included in MSCI World Index. All indexes are unmanaged.
/4/ncludes the major stock markets throughout the world, weighted by size and
adjusted to reflect foreign exchange fluctuation relative to the U.S. dollar.
U.S. companies currently represent approximately 50% of the total index.
[End Sidebar]
[Begin Sidebar]
NEW PERSPECTIVE'S
10 LARGEST STOCK HOLDINGS
AT FISCAL YEAR-END
(as of 9/30/99)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
% CHANGE FROM
% OF 10/1/98-9/30/99
COMPANY NPF'S NET COUNTRY (in U.S. dollars)
ASSETS
Mannesmann 2.3% Germany +74.6%
Micron 2.1 United States +118.7
Technology
AstraZeneca 2.1 United Kingdom +24.3
Pfizer 2.0 United States +1.8
Vodafone 1.9 United Kingdom +110.9
AirTouch
Time Warner 1.9 United States +38.8
Viacom 1.8 United States +46.1
Ericsson 1.6 Sweden +66.2
Philip Morris 1.4 United States -25.8
Sony 1.2 Japan +115.2
</TABLE>
[End Sidebar]
As the table above shows, most of the 10 largest holdings posted sizable
increases for the year. In addition to Micron Technology, they included such
long-time holdings as Ericsson, Time Warner, Viacom and Sony. Mannesmann, the
fund's largest investment, appreciated nearly 75% in price on top of last
year's 92% gain. AstraZeneca and Vodafone AirTouch, both products of
cross-border mergers earlier this year, also did well. Philip Morris was the
only stock of the largest 10 to decline.
DIVERSE INDUSTRIES
As we have frequently mentioned, New Perspective's investment focus has always
been set squarely on the long-term prospects of individual companies. At times,
this emphasis has led to sizable holdings in a sector where our analysts see
unusually attractive potential.
That has been the rationale behind our investments in
telecommunications-related firms, which once again represent New Perspective's
largest industry concentration. Over the years, many of these companies have
merged or otherwise expanded the scope of their operations to take advantage of
growing demand for increasingly sophisticated services. In the process, they
have proven to be very rewarding investments.
Many service providers are collaborating with technology firms that can help
them link voice, data and video. That trend has benefited such forward-looking
companies as Cisco Systems (+121.8%), Lucent Technologies (+87.9%) and Motorola
(+106.1%), to name a few. We discuss the remarkable convergence of technology
and telecommunications beginning on page 12 in our feature article.
Meanwhile, pharmaceutical stocks, another large area of concentration,
generally posted declines or only meager increases during the year - a result
of concerns about the impact of proposed health care reforms in the U.S. That
said, a few of the fund's drug company holdings bucked the trend and
appreciated nicely in price. More importantly, pharmaceuticals have proven to
be excellent long-term investments; going forward, innovative companies should
continue to provide good returns. In a number of cases, we used the decline to
add to our positions.
[Begin Sidebar]
GROWTH HAS ANOTHER IMPORTANT BENEFIT - NAMELY, THAT ECONOMIES OF SCALE HELP
KEEP FUND EXPENSES LOW.
[End Sidebar]
GROWING OPPORTUNITIES
New Perspective Fund has continued to grow. Net assets at year-end stood at
more than $25 billion, up more than 45% from 12 months ago. Much of that growth
reflects appreciation in the portfolio, but we also welcomed many new
shareholders, including a significant number of 401(k) retirement accounts.
New Perspective's method of portfolio management is helping to accommodate that
growth. The multiple portfolio counselor system, as it is called, was developed
40 years ago by Capital Research and Management Company, which serves as
investment adviser to New Perspective and all 29 of the American Funds. Because
assets are divided among a number of portfolio counselors, managers can be
added as the fund expands. New Perspective currently has eight primary
portfolio counselors, with an average of 24 years of experience among them, and
a research portfolio that draws on the expertise of Capital's many analysts.
Growth has another important benefit - namely, that economies of scale help
keep fund expenses low. As the table on page 38 shows, New Perspective's annual
expense ratio has trended downward, to 0.77% in fiscal 1999, or $77 for every
$10,000 invested. That is less than half of the 1.73% average expense ratio for
global equity funds, as measured by CDA/Wiesenberger.
TOWARD A NEW MILLENNIUM
While a 12-month return of nearly 40% is most welcome, we would certainly not
envision a repeat of last year's extraordinary gains any time soon. As we
mentioned earlier, the timing of our reporting period was an important factor
in the magnitude of the fund's return, and we would urge shareholders to temper
their expectations accordingly.
Indeed, there are signs of turbulence in the pipeline. The recent rise of
interest rates in this country has injected a degree of uncertainty into global
markets, many of which rely on the continued vigor of U.S. consumer demand. It
remains to be seen whether inflation will, in fact, intensify, or whether the
worst is already behind us.
Longer term, of course, global opportunities abound. Asia's economic tide
finally seems to have turned. Technological innovation is beginning to fulfill
its promise on a global scale, linking businesses and clients more profitably
and efficiently than we ever could have imagined. Worldwide deregulation has
increased the potential for companies to successfully position themselves in a
global marketplace.
In the shadow of a new millennium, it seems appropriate to review major events
that have helped shape New Perspective's universe and look forward to future
endeavors. We invite you to join us, in the article following this letter.
We look forward to reporting to you in six months.
Cordially,
/s/Walter P. Stern
Walter P. Stern
Chairman of the Board
/s/Gina H. Despres
Gina H. Despres
President
November 12, 1999
[photographs: Walter P. Stern, Gina H. Despres]
[Begin Caption]
Walter P. Stern Gina H. Despres
[End Caption]
THE VALUE OF A LONG-TERM PERSPECTIVE
There have always been reasons not to invest. If you look beyond the negative
headlines, however, you will find that, despite occasional stumbles, financial
markets have tended to reward investors over the long term. Active management -
bolstered by experience and careful research - can add even more value: As the
chart below shows, over its lifetime, New Perspective Fund has done
demonstrably better than its relevant benchmarks.
Dividends, particularly when reinvested, have accounted for a large portion of
the fund's overall results. The table beneath the chart breaks down the fund's
year-by-year total returns into their income and capital components.
LOW FUND EXPENSES, LOW TURNOVER RATE
(for the 12 months ended September 30, 1999)
New Perspective Fund's expense ratio was 0.77% in fiscal 1999. That's only $77
for every $10,000 invested and less than half of the 1.73% average expense
ratio for global equity funds, as measured by CDA/Wiesenberger.
The fund's turnover rate (the rate at which holdings are bought and sold) is
also low, keeping transaction costs and tax consequences contained. New
Perspective's 29% turnover rate means that stocks are held for an average of
3.4 years. The average global equity fund has a turnover rate of 91%, or an
average holding period of only 1.1 years, according to Lipper, Inc.
[Begin Sidebar]
How a $10,000 investment has grown
[begin line chart]
<TABLE>
<CAPTION>
<S> <C>
1973 World oil crisis
1974 President Nixon resigns
1975 New York City threatens bankruptcy
1976 Pol Pot controls Cambodia
1977 OPEC oil crisis
1978 Global unemployment escalates
1979 Inflation hits double digits
1980 Gold prices plunge
1981 U.S. interest rates peak
1982 Recession hobbles world economies
1983 USSR downs Korean jet
1984 Iran/Iraq war escalates
1985 U.S. becomes debtor nation
1986 Gorbachev calls for sweeping
economic changes
1987 U.S. banks suffer major losses
1988 Global stock market collapse
1989 Eastern European uprising
1990 Tiananmen Square
1991 Persian Gulf war
1992 Soviet regime disintegrates
1993 European currency crisis
1994 Fed raises interest rates six times
1995 Mexican peso devalued
1996 Technology stocks decline
1997 Asian "flu"
1998 Developing markets stumble
1999 Y2K computer fears
</TABLE>
Average Annual Compound Returns*
(for periods ended September 30, 1999)
<TABLE>
<CAPTION>
<S> <C>
10 Years +14.35%
5 Years +17.64%
1 Year +30.48%
</TABLE>
*Assumes reinvestment of all distributions and payment of the 5.75% sales
charge at the beginning of the stated periods.
$421,569/1,2/
New Perspective Fund
with dividends
reinvested
$284,022
MSCI USA Index
with dividends
reinvested
$213,911
MSCI World Index
with dividends
reinvested
$208,988/1/
New Perspective Fund
excluding dividends
$10,000/1/
original investment
<TABLE>
<CAPTION>
New
Perspective New
Year Fund Perspective MSCI USA MSCI World
ended TOTAL VALUE Fund Index with Index with
September Dividends excluding dividends dividends
30 Reinvested dividends reinvested reinvested
<S> <C> <C> <C> <C>
1973# $9,938 9,938 9,644 9,496
1974 7,402 7,163 5,796 5,886
1975 10,769 9,952 7,954 7,647
1976 12,720 11,422 10,379 9,328
1977 13,050 11,455 9,925 9,685
1978 17,342 14,861 10,953 11,895
1979 20,100 16,796 12,042 13,362
1980 24,866 20,250 14,200 15,945
1981 25,315 19,890 13,948 14,919
1982 27,151 19,984 15,458 15,314
1983 39,093 27,040 22,064 21,629
1984 39,494 26,488 23,019 22,861
1985 45,578 29,654 26,527 28,617
1986 63,273 40,227 34,776 45,581
1987 94,727 59,058 49,353 65,809
1988 81,233 49,459 42,818 61,905
1989 103,968 61,424 56,868 77,872
1990 98,896 57,024 52,008 61,430
1991 122,493 68,768 68,580 76,958
1992 132,337 72,828 76,198 76,629
1993 156,604 84,828 86,165 92,637
1994 176,345 94,260 89,637 100,116
1995 209,200 110,088 117,232 115,102
1996 231,461 119,477 142,355 131,445
1997 300,835 152,607 199,607 163,819
1998 304,530 152,236 221,657 164,657
1999 421,569 208,988 284,022 213,911
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended September 30 1993# 1974 1975 1976 1977 1978 1979
New Perspective Fund
Total Value
Dividends reinvested - $325 401 337 280 318 444
Value at year-end/1/ $9,938 7,402 10,769 12,720 13,050 17,342 20,100
Total Return (0.6)% (25.5) 45.5 18.1 2.6 32.9 15.9
Year ended September 30 1980 1981 1982 1983 1984 1985 1986
New Perspective Fund
Total Value
Dividends reinvested 501 931 1,667 1,830 1,205 1,196 1,178
Value at year-end/1/ 24,866 25,315 27,151 39,093 39,494 45,578 63,273
Total Return 23.7 1.8 7.3 44.0 1.0 15.4 38.8
Year ended September 30 1987 1988 1989 1990 1991 1992 1993
New Perspective Fund
Total Value
Dividends reinvested 1,393 1,820 2,605 2,617 2,979 2,524 2,172
Value at year-end/1/ 94,727 81,233 103,968 98,896 122,493 132,337 156,604
Total Return 49.7 (14.2) 28.0 (4.9) 23.9 8.0 18.3
Year ended September 30 1994 1995 1996 1997 1998 1999
New Perspective Fund
Total Value
Dividends reinvested 2,231 2,813 4,129 4,365 4,388 3,041
Value at year-end/1/ 176,345 209,200 231,461 300,835 304,530 421,569
Total Return 12.6 18.6 10.6 30.0 1.2 38.4
</TABLE>
Average annual compound return for 26-1/2 years 15.1%/1,2/
#For the period March 13, 1973 (commencement of operations), through September
30, 1973.
/1/These figures, unlike those shown elsewhere in this report, reflect payment
of the maximum sales charge of 5.75% on the $10,000 investment. Thus, the net
amount invested was $9,425. As outlined in the prospectus, the sales charge is
reduced for larger investments. The maximum intitial sales charge was 8.5%
prior to July 1, 1988. There is no sales charge on dividends or capital gain
distributions that are reinvested in additional shares. No adjustment has been
made for income or capital gain taxes.
/2/Includes reinvested dividends of $47,690 and reinvested capital gain
distributions of $120,218.
Past results are not predictive of future results.
[End Sidebar]
[photographs: close-up of atlast, satellite dish hovering over the
earth, chronometer]
THE BENEFITS OF CHANGE:
A LOOK BACK AT NEW PERSPECTIVE FUND'S GLOBAL APPROACH
[Begin Sidebar]
New Perspective Fund's early years saw oil prices quadruple and inflation
skyrocket.
[End Sidebar]
On the premise that nothing endures but change, New Perspective Fund was begun
26 years ago with an unusual focus: to capitalize on opportunities presented by
evolving trade patterns and economic and political relationships. Staying
abreast of those changes has been a complex, research-intensive enterprise -
and well worth the effort.
New Perspective's global outlook is perhaps best demonstrated by the portfolio
listings that begin on page 18 of this report. Many of the holdings are
well-known corporations - household names such as Time Warner, Nestle, Sony and
Caterpillar. Others may be less familiar. Regardless of where these firms are
based or what they specialize in, they share an important characteristic: All
of them serve a global clientele and do a sizable portion of their business
outside the country in which they are based. None is confined to a single
market.
That global focus matches New Perspective's own approach to the investment
process. The fund's investment adviser, Capital Research and Management
Company, relies on intensive global research to get to know companies inside
and out. Analysts spend thousands of hours a year on the road, meeting with
executives, touring production facilities and interviewing suppliers and
competitors. Most importantly, they leverage the information they've gathered
by communicating with each other extensively. That integrated research effort,
involving constant dialogue and a continuous exchange of ideas, results in a
broad base of knowledge that sets Capital Research - and New Perspective Fund -
apart.
That knowledge gives us a decided advantage when it comes to assessing
valuations in the marketplace. Finding solid long-term investments that are
also reasonably priced isn't easy. Because we focus on company fundamentals -
on the long-term prospects of well-run businesses - we often spot "diamonds in
the rough" long before other investors. While not every investment decision has
been successful, our ability over the years to anticipate trends and our
willingness to go against the grain has paid off handsomely for shareholders.
On the cusp of a new millennium, it seems appropriate to review some of the
developments that have shaped New Perspective's investment universe over the
past 26 years. On the following pages, we highlight three major investment
trends - natural resources in the 1970s, consumer goods in the 1980s and
telecommunications in the 1990s - that show how research helps us get there
early and capitalize on change.
OUT OF SCARCITY, OPPORTUNITY:
NATURAL RESOURCES IN THE 1970S
New Perspective Fund's attention to international change came into play right
at the starting gate. In 1973, our first year of operations, the world was
enmeshed in conflict in the Middle East, an energy crisis and widespread crop
failures, all of which contributed to severe global inflation.
The tensions caused by this series of shocks led us to maintain a fairly
cautious stance in that first year. Nonetheless, in the midst of these
unsettling changes, we found pockets of opportunity, particularly among basic
resources industries such as energy, metals, timber and minerals.
[Begin Caption]
THE MID- TO LATE-70S: A FOCUS ON NATURAL RESOURCES
[photographs: offshore oil rig, staircare against building, car gas tank]
[End Caption]
[Begin Sidebar]
NATURAL RESOURCES IN THE 1970S
FOR THE PERIOD 3/31/73 THROUGH 3/31/80
(indexed to 100)
[begin line chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Date Energy Stocks MSCI World Metals (non-
Index ferrous Stocks)
3/31/73 100.00 100.00 100.00
9/30/73 95.16 99.06 109.22
3/31/74 81.70 90.23 108.59
9/30/74 56.62 62.90 70.85
3/31/75 74.16 77.36 84.75
9/30/75 70.30 95.32 102.85
3/31/76 82.48 102.83 104.61
9/30/76 80.30 102.46 99.29
3/31/77 82.00 104.17 79.92
9/30/77 82.35 99.11 76.26
3/31/78 96.04 114.26 95.25
9/30/78 96.65 128.39 109.22
3/31/79 102.74 163.07 130.42
9/30/79 93.52 172.59 138.19
</TABLE>
[end chart]
(Source: Morgan Stanley Capital International. Figures reflect dividends taken
in cash.)
[End Sidebar]
[Begin Caption]
LARGE HOLDINGS IN THE 1970S INCLUDED ATLANTIC RICHFIELD AND ALCAN ALUMINIUM.
[End Caption]
In October 1973, a decision by OPEC members to cut back petroleum production
and curtail shipments suddenly quadrupled the cost of oil. At the same time,
growing demand for materials such as paper, metals and chemicals pushed up
their prices much faster than the average inflation rate. Gold prices soared,
too, as people sought a hedge against double-digit inflation. As Bill Newton,
one of the fund's original portfolio counselors, remembers, "We noticed that,
seemingly overnight, the world had shifted from a low-cost environment for raw
materials to a high-cost one."
[Begin Sidebar]
[photograph: John Harrison]
JOHN HARRISON'S CHRONOMETER:
THE BIRTH OF A NEW PERSPECTIVE
Without a reliable method for determining longitude, sea travel was fraught
with peril. Until the end of the eighteenth century, ships easily steered off
course or foundered near rocky shoals. To overcome these dangers, merchants
tended to stick to well-traveled sea-lanes, inviting pirate attack. Solving the
"longitude problem," as it was known, was critical, but it had baffled some of
the greatest minds in science for centuries.
The solution, wrote Sir Isaac Newton, was a watch that could keep time exactly.
But, he predicted, "by reason of the motion of the ship, the Variation of Heat
and Cold, Wet and Dry, and the Difference of Gravity in different Latitudes,
such watch hath not been made, and is not likely to be either."
Some sixteen years later, in 1730, John Harrison, a self-taught watchmaker from
northern England, proved Newton wrong, by ultimately creating five prototypes.
Using his chronometer - with its self-contained seesaws and springs,
counterbalanced to withstand the wildest waves - a sailor could measure
longitude and accurately calculate his global position for the first time in
history. Harrison's invention was no more than a simple mechanical watch, but
it was an indispensable tool for seeing the world anew - providing a truly new
perspective.
In many ways, the chronometer is an apt symbol for New Perspective Fund, which
is guided by a special mandate to focus on changes in international trade
patterns and economic and political relationships. Like John Harrison's
groundbreaking timepiece, that focus helps us see the world anew every day.
[End Sidebar]
Although New Perspective Fund had just begun operations, Capital Research had
been following these global industries for many years. Analysts had been
visiting oil wells and refineries in Saudi Arabia, interviewing experts on the
Middle East and calling on oil company executives around the world. By the late
1960s, we had begun to take note of certain patterns that seemed to portend
shortages down the line.
Among them was a trend toward nationalization and a suspicion by certain
resource-rich nations of foreign interests. "After Iran began edging out
foreign oil companies in the mid-'50s," recalls portfolio counselor Gregg
Ireland, who for many years served as an oil and gas analyst, "producers of oil
and other basic materials began cutting back their investments in places like
the Middle East and Africa, fearing that their assets would be expropriated.
That contributed to the scarcity we saw through much of the 1970s."
While no one could have anticipated the full impact of these shortages, the
fund's investment professionals were alert to the possibilities and in a
position to act quickly. By the close of its first fiscal year, nearly
one-third of New Perspective's net assets were invested in energy and basic
materials companies. Holdings included Atlantic Richfield, Royal Dutch
Petroleum, Alcan Aluminium and Kerr-McGee, a nuclear fuel producer at that
time. Through a good part of the 1970s, these stocks did far better than the
market as a whole.
MAKING WAY FOR THE 1980S:
CONSUMER PRODUCTS AND THE
EMERGENCE OF THE GLOBAL BRAND
The 1980s heralded a shift in market leadership from commodities to consumer
goods. Fueled by a rush of technological innovation, this was the "sweet spot"
for the VCR and the Walkman(r) personal stereo; for Zantac and so-called
"alpha" drugs such as Prozac; and for globally recognized names like Kodak and
Time magazine. The most successful products appealed to a world clientele and
boosted the fortunes - and stock prices - of companies that could take
advantage of their global appeal.
[Begin Caption]
[photo collage: youth looking at computer, lab equipment, newpaper headline]
THE 1980S WITNESSED A SHIFT FROM COMMODITIES TO SUCH CONSUMER GOODS AND
SERVICES AS ENTERTAINMENT, PHARMACEUTICALS AND ELECTRONICS.
[End Caption]
The growth of these companies was brought on by a number of changes affecting
international trade. Recovery from the recessions of the 1970s had renewed
capital investment worldwide and invigorated consumer demand. Japan had emerged
as an economic powerhouse and was producing an increasingly large share of the
world's cars and electronics. Meanwhile, Eastern Europe and Southeast Asia
moved toward an open-market economy, raising living standards in those regions
and creating new opportunities for multinational businesses.
By the early 1980s, we were well aware of these trends - and busily
capitalizing on them. At that point, for example, Thierry Vandeventer, a
long-time portfolio counselor for the fund, had been calling on Japanese
companies as an analyst for more than 15 years. In the late 1970s, when weak
stock prices and a strengthening dollar provided an opportunity to build up
large positions in Matsushita Electric and Hitachi, Thierry leapt at the
chance. "These two companies had already made inroads into America's consumer
goods business with their color televisions," he recalls, "and were forging
ahead with new technology for VCRs. Based on what we had learned about the
management of these firms and the prospects for these products, it was clear
that their stock prices were too good to pass up." Both of these stocks
outpaced the Japanese market, which was itself soaring, through a good part of
the 1980s.
The fund had similar success with its holdings in SmithKline, Yamanouchi and
other pharmaceutical concerns, thanks to the collective expertise of the fund's
health care analysts around the world. In the case of Yamanouchi, for instance,
our analysts' global expertise helped us recognize the potential of the
company's new blood pressure drug quite early on. Perdipine, as it was known,
went on to surpass even Yamanouchi's expectations and became one of Japan's
top-selling drugs; likewise, due to the insights gained by our research,
Yamanouchi's stock proved to be a very rewarding investment for New
Perspective.
[Begin Caption]
[photo collage: headphone with personal radio, Honda car sign, Pfizer
medication]
THE 1980S: CONSUMER GOODS TAKE CENTER STAGE
[End Caption]
[Begin Sidebar]
CONSUMER GOODS IN THE 1980S
FOR THE PERIOD 3/31/80 THROUGH 3/31/90
(indexed to 100)
[begin line chart]
<TABLE>
<CAPTION>
<S> <C> <C>
Date Consumer Goods MSCI World Index
Stocks
3/31/80 100.00 100.00
9/30/80 124.50 122.20
3/31/81 129.47 135.41
9/30/99 111.04 122.21
3/31/82 106.34 122.35
9/30/82 108.25 134.17
3/31/83 135.12 164.29
9/30/83 146.77 177.64
3/31/84 154.20 182.06
9/30/84 149.25 181.67
3/31/85 165.34 199.70
9/30/85 180.30 213.10
3/31/86 251.79 322.87
9/30/86 279.24 351.79
3/31/87 354.06 438.73
9/30/87 394.76 517.52
3/31/88 368.60 475.63
9/30/88 362.86 465.12
3/31/89 409.41 516.24
9/30/89 446.83 594.90
3/31/90 393.48 543.62
</TABLE>
[end chart]
(Source: Morgan Stanley Capital International. Figures reflect dividends taken
in cash.)
[End Sidebar]
[Begin Caption]
LARGE HOLDINGS IN THE 1980S INCLUDED MATSUSHITA ELECTRIC, TIME, INC., AND
YAMANOUCHI PHARMACEUTICAL.
[End Caption]
A global approach to research and investing also helps us put stock valuations
in perspective. "When you assess companies in the context of how their industry
is doing worldwide," explains Darcy Kopcho, an analyst covering the auto
industry, "it keeps you from making judgments in a vacuum." In the 1980s, for
example, the discrepancy between Japanese auto stocks and their U.S.
counterparts led her to study their comparative advantages. "What became
apparent to us," she notes, "was that two or three companies with similar
long-term prospects often had stock valuations that were widely divergent. That
was something I couldn't have known if my research had been confined to a
single market."
Ultimately, stock prices for consumer goods companies would appreciate some
400% during the 1980s. New Perspective was in a good position to participate in
that growth. By 1982, consumer brand names - like Matsushita Electric (owner of
Panasonic), Sony, Time, SmithKline, Daimler-Benz and Philip Morris, to name a
few - represented more than one-fifth of net assets.
THE GREAT CONVERGENCE: COMMUNICATIONS MEETS TECHNOLOGY IN THE 1990S
In the last decade, the communications revolution has presented investors with
a well-stocked pond of opportunities. That has been particularly true for
telecommunications companies - service providers, equipment manufacturers and
network builders. In many ways, these businesses form an industry that was
created by change.
Not long ago, telephone companies seemed to offer little in the way of
investment potential. AT&T's dominance in the U.S. seemed unassailable, and
most overseas phone companies were bureaucratic, state-run affairs. Everything
began to change in the mid-1980s, with the breakup of Ma Bell's monopoly in
this country; soon after, governments outside the U.S. pushed to privatize
their national phone companies. More recently, worldwide deregulation has
opened once-protected markets, making the industry not only competitive, but
also focused on growth.
The industry is undergoing yet another sea change as service providers maneuver
to lead the next wave of the information revolution. Phone lines are now
linking voice, data and video and doing it more cheaply than ever. In the last
decade, wireless phones have gone from being a novelty to a mass-market
consumer product and an indispensable business tool.
[Begin Caption]
[photograph: chronometer]
THE H-4, HARRISON'S FOURTH - AND MOST ACCURATE - MARINE CHRONOMETER.
[End Caption]
[Begin Sidebar]
INVESTING IN CHANGE:
A LOOK AT NEWS CORP.
[photo collage: "The X Files", Fox network logo, satellite dish, "Channel V",
globe, "The Times"]
New Perspective's integrated research effort spans countries and industries.
Multiple viewpoints often help the fund's analysts uncover "gems" that others
may have missed.
That was certainly the case with News Corp., which was first added to the
portfolio in 1990. At the time, most investors were steering clear of the
stock: In light of the relatively low revenues generated by its Australian
businesses, News Corp. - which was busily acquiring media companies in the
U.S., the U.K. and Asia - appeared to be badly over-leveraged. Portfolio
counselor Mark Denning, who was a research analyst for the fund at the time,
recalls that "the share price was dropping like mad because investors just
didn't realize how valuable News Corp.'s non-Australian assets were." After
consulting with other Capital analysts following the company's interests in the
U.S. and elsewhere, he was convinced that this would be a good buy for New
Perspective. The intervening years have shown the merit of that decision: News
Corp. was the fund's largest holding in 1993 and 1994. It has continued to be a
very profitable holding for the fund.
Today, Rupert Murdoch sits at the helm of a media empire that reaches virtually
every corner of the world through its satellite and cable broadcasting
services, and through its books, movies and television programs. That reach is
now extending to the Internet and to underserved markets such as China and
Eastern Europe. News Corp.'s ability to capitalize on change has made it a good
long-term fit for the fund. It continues to be a fairly sizable holding, and as
the company continues to expand, the fund's global research will easily keep
pace.
[End Sidebar]
[Begin Caption]
[photo collage: person speaking on telephone, computer chip, computer monitor]
THE 1990S: GLOBALIZATION GETS WIRED
[End Caption]
Technology seems to have found its most compatible partner yet in the
telecommunications industry. It has contributed to the success of companies as
wide-ranging as Sprint, Nokia, Vodafone AirTouch, Mannesmann, Micron Technology
and Samsung Electronics.
New Perspective's investment professionals had begun to recognize the link as
far back as the early 1980s, even before telecommunications had become a viable
investment option. "To some extent," recalls Thierry, "our enthiusiasm about
the potential for communications was the rationale behind many of our
technology investments. That conviction led us to build positions not only in
mobile phone companies like Motorola, Ericsson and Northern Telecom, but also
more recently in Fujitsu and Siemens, which were developing technology for
wireless infrastructure."
Our initial enthusiasm has not abated. Today, telecommunications-related issues
represent New Perspective's largest industry concentration by far. Many are
long-time holdings, but as companies consolidate and cross borders, global
research and multiple perspectives are as important as ever. "The traditional
lines between countries and industries are rapidly blurring," notes Brad Vogt,
one of the fund's telecom analysts, "and it's important to be aware of those
changes well before they happen. That's why our global research network is so
valuable."
Brad, who is based in Washington, D.C., is part of a telecommunications
"cluster group," comprising roughly a dozen analysts worldwide with relevant
areas of expertise. Like fitting together pieces of a jigsaw puzzle, Brad and
his colleagues visit companies together, share insights at regular
teleconferences and write frequent reports on the companies and areas they
follow. In an effort to stay abreast of technological developments, the cluster
group has held intensive retreats with many of the industry's leading engineers
and technical experts.
[Begin Sidebar]
TELECOMMUNICATIONS IN THE 1990S
FOR THE PERIOD 3/31/90 THROUGH 9/30/99
(indexed to 100)
[begin line chart]
<TABLE>
<CAPTION>
<S> <C> <C>
Date Telecommunications MSCI World Index
Stocks
3/31/90 100.00 100.00
9/30/90 87.46 89.67
3/31/91 104.23 98.65
9/30/91 106.74 104.26
3/31/92 101.11 99.47
9/30/92 103.54 107.69
3/31/93 111.03 122.91
9/31/93 122.24 135.12
3/31/94 123.96 127.90
9/30/94 129.35 135.23
3/31/95 133.25 132.78
9/30/95 145.47 153.09
3/31/96 157.33 155.51
9/30/96 162.75 149.86
3/31/97 169.42 162.59
9/30/96 199.14 185.11
3/31/97 220.61 240.97
9/30/97 196.85 244.04
3/31/98 245.45 318.86
9/30/98 251.93 329.52
</TABLE>
[end chart]
(Source: Morgan Stanley Capital International. Figures reflect dividends taken
in cash)
[End Sidebar]
[Begin Caption]
TODAY, MANNESMANN, VODAFONE AIRTOUCH AND ERICSSON ARE AMONG THE FUND'S LARGEST
TELECOM HOLDINGS.
[End Caption]
Cooperation helps the fund's investment professionals react quickly when
opportunity knocks. That was the case several years ago when Mannesmann, the
German conglomerate, entered into
a wireless joint venture with U.S.-based AirTouch. "At the time, Mannesmann was
essentially valued as an industrial company," recalls David Riley, the fund's
European telecom analyst. "We understood very early on that the value of their
telecom assets would eclipse their other holdings." David, Brad, and their
colleague who followed Mannesmann studied the outlook for the wireless venture.
All three analysts felt strongly that the stocks were undervalued. Their
confidence was amply repaid - both AirTouch and Mannesmann have been very
successful investments for the fund.
But there is no room for complacency in an industry that is constantly
evolving. AirTouch, in fact, has since merged with Vodafone to form the world's
largest wireless operator. Mannesmann has also expanded aggressively, recently
bidding for another U.K.-based wireless operator, Orange. AT&T, meanwhile, is
rebuilding a local connection with its customers by buying cable television
companies TCI and MediaOne. As the communications revolution begins to realize
its promise, our global analytical resources will keep us a step ahead.
NEW PERSPECTIVE IN 2000 AND BEYOND
New Perspective's strategy of focusing on change was a prescient one. Over the
past 26 years, trade barriers have been lowered substantially. The market
economy has become the dominant world model, raising living standards for many
once-destitute nations. Europe is transforming itself into a single, massive
marketplace that is beginning to rival the U.S. in size. China has taken the
first steps toward market reforms. Companies have only begun to tap the
potential of these opportunities. We are following these developments with
great interest.
Technology may provide some clues. The Internet has taken globalization to a
new, accelerated level. As more people become virtually connected, the more
useful those connections will become, a phenomenon economists call the "network
effect." The Internet will also expand New Perspective's investment universe,
by opening new markets for what were once local industries, such as retail.
In a present that has so surpassed our expectations, it is difficult to
envision a future that can change as dramatically. And yet it will, of course,
and likely at an even faster pace. Regardless of what the coming decades bring,
we are prepared. As we continue to keep an eye on world events, we look forward
to pursuing new endeavors on your behalf.
Portrait of John Harrison, National Museum of Photography,
Film & Television/Science & Society PIcture Library
Photo of Walkman(r) personal stereo courtesy of Sony Electronics Inc.
The Fox logo is a trademark of Twentieth Century Fox.
Used with permission.
[Begin Sidebar]
THE NEW MILLENNIUM:
A WORLD OF OPPORTUNITIES
[End Sidebar]
[Begin Caption]
[photo collage: videoconference monitors, fiber optics, satellite]
ON THE BRINK OF THE 21ST CENTURY, NEW PERSPECTIVE FUND IS PREPARED FOR WHATEVER
THE FUTURE MAY BRING.
[End Caption]
WHAT MAKES THE AMERICAN FUNDS DIFFERENT?
AS A SHAREHOLDER IN NEW PERSPECTIVE FUND, YOU ARE ALSO A MEMBER OF THE AMERICAN
FUNDS GROUP,(R) THE NATION'S THIRD-LARGEST MUTUAL FUND FAMILY. YOU WON'T FIND
US ADVERTISED, YET THOUSANDS OF FINANCIAL ADVISERS RECOMMEND THE AMERICAN FUNDS
FOR THEIR CLIENTS' SERIOUS MONEY - MONEY SET ASIDE FOR EDUCATION, A HOME,
RETIREMENT AND OTHER IMPORTANT DREAMS.
What the 29 funds in our group have in common is a commitment to your best
interests and the proven approach of our investment adviser, Capital Research
and Management Company. In business since 1931, Capital's calling cards
include:
A LONG-TERM, VALUE-ORIENTED APPROACH: Rather than follow short-term fads, we
rely on our own intensive research to find well-managed companies with
reasonably priced shares and solid, long-term potential. Despite our size, we
offer relatively few funds compared with many large fund families, allowing us
to maintain a careful focus on our objectives and enabling you to benefit from
economies of scale.
A GLOBAL PERSPECTIVE: We opened our first overseas office in 1962, well before
most mutual funds began investing internationally. Today, the American Funds
draw on one of the industry's most globally integrated research networks. We
spend substantial resources getting to know companies and industries around the
world.
A MULTIPLE PORTFOLIO COUNSELOR SYSTEM: More than 40 years ago, we developed a
unique strategy for managing investments that blends teamwork with individual
accountability. Every American Fund is divided among a number of portfolio
counselors, each of whom manages his or her portion independently, within each
fund's objectives; in most cases, research analysts manage a portion as well.
Over time, this method has contributed to consistency of results and continuity
of management.
EXPERIENCED INVESTMENT PROFESSIONALS: Nearly 90% of the portfolio counselors
who serve the American Funds were in the investment business before the stock
market decline in October 1987. Long tenure and experience through a variety of
market conditions mean we aren't "practicing" with your money.
A COMMITMENT TO LOW OPERATING EXPENSES: You can't control market returns, but
you can control what you invest in and how much you pay to own it. American
Funds provide exceptional value for shareholders, with operating expenses that
are among the lowest in the mutual fund industry. Our portfolio turnover rate
is low as well, keeping transaction costs and tax consequences contained.
[photograph of the American flag]
A PORTFOLIO FOR EVERY INVESTOR
Most financial advisers suggest that investors balance their portfolios by
investing across several types of investments. Which mix is right for you? That
depends on a number of things - including your risk tolerance, investment time
horizon and financial goals. The American Funds Group offers 29 funds with an
array of investment objectives to help you and your financial adviser build a
portfolio specifically tailored to your needs.
GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP FUND(R)
EUROPACIFIC GROWTH FUND(R)
THE GROWTH FUND OF AMERICA(R)
THE NEW ECONOMY FUND(R)
NEW PERSPECTIVE FUND(R)
NEW WORLD FUND(SM)
SMALLCAP WORLD FUND(R)
GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
AMERICAN MUTUAL FUND(R)
CAPITAL WORLD GROWTH AND INCOME FUND(SM)
FUNDAMENTAL INVESTORS(SM)
THE INVESTMENT COMPANY OF AMERICA(R)
WASHINGTON MUTUAL INVESTORS FUND(SM)
EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
CAPITAL INCOME BUILDER(R)
THE INCOME FUND OF AMERICA(R)
BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
AMERICAN BALANCED FUND(R)
INCOME FUNDS
Emphasis on current income through bonds
AMERICAN HIGH-INCOME TRUST(SM)
THE BOND FUND OF AMERICA(SM)
CAPITAL WORLD BOND FUND(R)
INTERMEDIATE BOND FUND OF AMERICA(R)
U.S. GOVERNMENT SECURITIES FUND(SM)
TAX-EXEMPT INCOME FUNDS
Emphasis on tax-free current income through municipal bonds
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND(R)
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA(SM)
THE TAX-EXEMPT BOND FUND OF AMERICA(R)
State-specific tax-exempt funds
THE TAX-EXEMPT FUND OF CALIFORNIA(R)
THE TAX-EXEMPT FUND OF MARYLAND(R)
The Tax-Exempt Fund of Virginia(r)
MONEY MARKET FUNDS
Emphasis on stable monthly income through money market instruments
THE CASH MANAGEMENT TRUST OF AMERICA(R)
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM)
THE U.S. TREASURY MONEY FUND OF AMERICA(SM)
For more complete information about any of the funds, including charges and
expenses, please obtain a prospectus from your financial adviser, download one
from our Web site at www.americanfunds.com, or phone the fund's transfer agent,
American Funds Service Company, at 800/421-0180. Please read the prospectus
carefully before you invest or send money. For more information, ask your
financial adviser for a copy of A Portfolio for Every Investor.
[various photographs of statiscal images on computer terminals]
<TABLE>
New Perspective Fund, Inc.
Investment Portfolio, September 30, 1999
<S> <C> <C> <C>
[pie chart for largest industry holdings]
LARGEST INDUSTRY HOLDINGS Largest Individual
Holdings
8.55% Diversified Telecommunication Services Mannesmann 2.28
8.34% Health & Personal Care Micron Technology 2.09
8.20% Electronic Components AstraZeneca 2.09
6.95% Electrical & Electronics Pfizer Inc. 2.04
5.88% Broadcasting & Publishing Vodafone AirTouch 1.91
48.79% Other Industries Time Warner 1.85
0.43% Bonds & Notes Viacom 1.77
12.86% Cash and Equivalents Ericsson 1.56
Philip Morris 1.37
Sony 1.23
Shares/Principal Market Percent
Amount Value Of Net
EQUITY SECURITIES (000) Assets
- -------------------------------------------- -------- ----------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 8.55%
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 3,934,530 280.335 1.09
Telecom Italia SpA, ordinary shares (Italy) 15,427,500 133.140 1.05
Telecom Italia SpA, nonconvertible savings shares 27,127,995 136.768
Deutsche Telekom AG (Germany) 5,308,400 217.882 .85
MCI WorldCom, Inc. (USA)(1) 2,892,067 207.867 .81
AT&T Corp. (USA) 4,338,200 188.712 .73
Global Crossing Ltd. (USA - Incorporated in Bermuda)(1) 5,200,000 137.800 .54
Telefonica, SA (Spain) 8,595,540 137.730 .53
Tele Danmark AS (Denmark) 1,342,300 80.133
Tele Danmark AS, Class B (ADR) 1,398,600 41.433 .47
Swisscom AG (Switzerland) 313,086 97.787 .38
Sprint FON Group (USA) 1,766,800 95.849 .37
France Telecom, SA (France) 1,000,000 87.847 .34
Koninklijke PTT Nederland NV (Netherlands) 1,687,862 74.047 .28
Telecom Corp. of New Zealand Ltd. (New Zealand) 10,671,100 42.086
Telecom Corp. of New Zealand Ltd. (2) 4,917,700 19.395 .24
Teleglobe Inc. (Canada) 3,300,000 51.028 .20
British Telecommunications PLC (United Kingdom) 3,000,000 45.542 .18
Global TeleSystems Group, Inc. (USA)(1) 1,830,000 36.085 .14
Korea Telecom Corp. (ADR) (Korea)(1) 766,500 28.361 .11
Nippon Telegraph and Telephone Corp. (Japan) 2,000 24.629 .10
Embratel Participacoes SA, preferred nominative 2,000,000 22.875 .09
(ADR) (Brazil)
Telstra Corp. Ltd. (Australia) 2,800,000 14.508 .05
HEALTH & PERSONAL CARE - 8.34%
AstraZeneca PLC (United Kingdom) 12,275,560 514.305
AstraZeneca PLC (ADR) 555,000 23.449 2.09
Pfizer Inc (USA) 14,610,000 525.047 2.04
Novartis AG (Switzerland) 95,450 141.799 .55
Teva Pharmaceutical Industries Ltd. (ADR) (Israel) 2,635,000 132.573 .52
SmithKline Beecham PLC (ADR) (United Kingdom) 2,200,000 126.775 .49
Elan Corp., PLC (ADR) (Ireland) (1) 3,400,000 114.112 .44
Merck & Co., Inc. (USA) 1,621,000 105.061 .41
Glaxo Wellcome PLC (United Kingdom) 563,264 14.602
Glaxo Wellcome PLC (ADR) 1,044,000 54.288 .27
Bristol-Myers Squibb Co. (USA) 800,000 54.000 .21
ALZA Corp. (USA)(1) 1,000,000 42.812 .17
Genentech, Inc. (USA) (1) 267,500 39.139 .15
Guidant Corp. (USA) (1) 660,000 35.392 .14
Fujisawa Pharmaceutical Co. Ltd. (Japan) 1,782,000 34.675 .13
Luxottica Group SpA (ADR) (Italy) 1,812,700 34.555 .13
Pharmacia & Upjohn, Inc. (USA) 600,000 29.775 .12
Medtronic, Inc. (USA) 800,000 28.400 .11
Nycomed Amersham PLC (United Kingdom) 4,700,000 28.064 .11
Shionogi & Co., Ltd. (Japan) 3,200,000 26.291 .10
Shiseido Co., Ltd. (Japan) 1,250,000 18.683 .07
Kimberly-Clark Corp. (USA) 250,000 13.125 .05
Avon Products, Inc. (USA) 400,000 9.925 .04
ELECTRONIC COMPONENTS - 8.20%
Micron Technology, Inc. (USA) (1) 8,100,000 539.156 2.09
Taiwan Semiconductor Manufacturing Co. Ltd. 70,193,000 296.075 1.15
(Taiwan)(1)
Samsung Electronics Co., Ltd. (South Korea) 1,601,176 259.401 1.01
Intel Corp. (USA) 2,200,000 163.487 .63
Advanced Micro Devices, Inc. (USA)(1) 7,250,000 124.609 .48
Murata Manufacturing Co., Ltd. (Japan) 1,146,000 115.268 .45
Hon Hai Precision Industry Co. Ltd. (Taiwan)(1) 14,560,000 95.687 .37
Analog Devices, Inc. (USA)(1) 1,710,000 87.638 .34
Rohm Co., Ltd. (Japan) 400,000 83.662 .32
Altera Corp. (USA)(1) 1,764,800 76.548 .30
Texas Instruments Inc. (USA) 900,000 74.025 .30
Hirose Electric Co., Ltd. (Japan) 400,000 62.982 .24
Seagate Technology (USA)(1) 1,200,000 36.975 .14
Motorola, Inc. (USA) 400,000 35.200 .14
Fanuc Ltd. (Japan) 515,000 35.050 .14
Newbridge Networks Corp. (Canada) (1) 1,000,000 26.062 .10
ELECTRICAL & ELECTRONICS - 6.95%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 11,910,000 371.662
Telefonaktiebolaget LM Ericsson, Class B (ADR) 1,000,000 31.250 1.56
Nokia Corp., Class A (Finland) 1,440,000 129.109 1.16
Nokia Corp., Class A (ADR) 1,900,000 170.644
Toshiba Corp. (Japan) 34,500,000 257.177 1.01
Siemens AG (Germany) 2,950,000 243.894 .95
NEC Corp. (Japan) 10,250,000 206.677 .80
Matsushita Communication Industrial Co., Ltd. (Japan) 990,000 110.279 .43
Schneider SA (France) 1,300,000 95.213 .37
Lucent Technologies Inc. (USA) 1,072,500 69.578 .27
Nortel Networks Corp. (formerly Northern 1,029,200 52.489 .20
Telecom Ltd.) (Canada)
General Electric Co. (USA) 440,000 52.168 .20
BROADCASTING & PUBLISHING - 5.88%
Time Warner Inc. (USA) 7,844,000 476.523 1.85
Viacom Inc., Class A (USA) (1) 1,000,000 43.250
Viacom Inc., Class B (1) 9,780,000 413.205 1.77
News Corp. Ltd. (Australia) 3,962,351 27.794
News Corp. Ltd. (ADR) 3,991,600 113.511
News Corp. Ltd., preferred 2,041,755 13.454
News Corp. Ltd., preferred (ADR) 2,548,800 68.021 .86
CANAL + (France) 1,421,172 84.998 .33
Grupo Televisa, SA, ordinary participation 1,875,400 74.899 .29
certificates (ADR) (Mexico)(1)
CBS Corp. (USA)(1) 1,045,000 48.331 .19
AT&T Corp. Liberty Media Group, Class A (USA)(1) 1,300,000 48.262 .19
Pearson PLC (United Kingdom) 1,700,000 35.798 .14
Dow Jones & Co., Inc. (USA) 500,000 26.688 .10
Wolters Kluwer NV (Netherlands) 650,064 22.316 .09
Elsevier NV (Netherlands) 1,700,000 17.489 .07
WIRELESS TELECOMMUNICATION SERVICES - 5.39%
Mannesmann AG (Germany) 1,637,500 261.861 2.28
Mannesmann AG (ADR) 2,037,500 326.000
Vodafone AirTouch PLC (ADR) (United Kingdom) 2,072,850 492.820 1.91
(formerly Vodafone Group PLC)
DDI Corp. (Japan) 39,500 297.048 1.16
Orange PLC (United Kingdom)(1) 485,425 9.565 .04
BANKING - 5.07%
Bank of America Corp. (formerly BankAmerica 3,767,400 209.797 .81
Corp.) (USA)
Bank of Nova Scotia (Canada) 7,719,000 165.678 .64
Westpac Banking Corp. (Australia) 18,023,011 111.150
Westpac Banking Corp., warrants, expire 2000 (1) 3,000,000 17.321 .50
ABN AMRO Holding NV (Netherlands) 5,669,731 127.539 .50
Royal Bank of Canada (Canada) 2,717,000 112.746 .44
Sakura Bank, Ltd. (Japan) 14,700,000 110.547 .43
Citigroup Inc. (USA) 2,062,500 90.750 .35
Fuji Bank, Ltd. (Japan) 6,855,000 83.384 .32
Australia and New Zealand Banking Group Ltd. 12,143,541 81.205 .32
(Australia)
Banco Santander Central Hispano, SA (formerly 4,932,000 51.055
Banco de Santander, SA) (Spain)
Banco Santander Central Hispano, SA (ADR) 2,203,200 22.721 .29
Banque Nationale de Paris (France) 570,000 45.545
Banque Nationale de Paris, guaranteed value 130,000 1.081 .18
certificates, expire 2002 (1)
San Paolo-IMI SpA (Italy) 2,000,000 25.906 .10
First Union Corp. (USA) 700,000 24.894 .10
Toronto-Dominion Bank (Canada) 1,223,700 23.722 .09
DATA PROCESSING & REPRODUCTION - 4.43%
Fujitsu Ltd. (Japan) 9,623,000 300.323 1.17
Microsoft Corp. (USA) (1) 2,500,000 226.406 .89
Computer Associates International, Inc. (USA) 3,550,000 217.438 .84
Oracle Corp. (USA)(1) 2,150,000 97.825 .38
Compaq Computer Corp. (USA) 3,400,000 77.987 .30
International Business Machines Corp. (USA) 600,000 72.825 .28
Cisco Systems, Inc. (USA) (1) 900,000 61.706 .24
Gateway, Inc. (formerly Gateway 2000, Inc.) (USA)(1) 1,000,000 44.438 .17
PeopleSoft, Inc. (USA)(1) 2,465,100 41.753 .16
ENERGY SOURCES - 2.93%
TOTAL FINA SA, Class B (France) 131,077 16.490
TOTAL FINA SA, Class B (ADR) 2,788,924 176.922 .75
Elf Aquitaine (France) 400,000 69.936
Elf Aquitaine (ADR) 1,100,000 100.788 .66
Royal Dutch Petroleum Co. (New York Registered 1,952,000 115.290
Shares) (Netherlands)
"Shell" Transport and Trading Co., PLC (United Kingdom) 3,000,000 22.224 .54
Norsk Hydro AS (Norway) 2,000,000 84.952 .33
Talisman Energy Inc. (Canada)(1) 1,535,500 45.774 .18
Phillips Petroleum Co. (USA) 850,000 41.438 .16
Unocal Corp. (USA) 982,500 36.414 .14
Broken Hill Proprietary Co. Ltd. (Australia) 3,213,797 37.006 .14
RAO Gazprom (ADR) (Russia)(1,2) 1,141,000 7.901 .03
INSURANCE - 2.47%
ING Groep NV (Netherlands) 2,603,331 141.546
ING Groep NV, warrants, expire 2008 (1) 590,000 11.322 .59
American International Group, Inc. (USA) 1,498,046 130.236 .51
Allianz AG (Germany) 268,000 77.314 .30
Fairfax Financial Holdings Ltd. (Canada)(1) 352,800 52.886
Fairfax Financial Holdings Ltd. (1,2) 93,000 13.941 .26
QBE Insurance Group Ltd. (Australia) 14,414,732 55.344 .21
Yasuda Fire and Marine Insurance Co., Ltd (Japan) 7,158,000 45.688 .18
AEGON NV (Netherlands) 510,843 44.005 .17
Assicurazioni Generali SpA (Italy) 1,100,000 36.624 .14
Royal & Sun Alliance Insurance Group PLC 3,500,000 27.185 .11
(United Kingdom)
BUSINESS & PUBLIC SERVICES - 2.40%
Cendant Corp. (USA)(1) 15,408,000 273.492 1.06
Reuters Group PLC (United Kingdom) 9,670,400 106.983 .42
TNT Post Groep (Netherlands) 2,914,488 74.261 .29
Rentokil Initial PLC (United Kingdom) 16,200,000 57.254 .22
Interpublic Group of Companies, Inc. (USA) 1,000,000 41.125 .16
Electronic Data Systems Corp. (USA) 550,000 29.116 .11
Pitney Bowes Inc. (USA) 400,000 24.375 .09
United Utilities PLC (United Kingdom) 1,000,000 10.775 .05
MULTI-INDUSTRY - 2.26%
Invensys PLC (formerly BTR Siebe PLC) (United Kingdom) 29,120,000 139.176 .54
Investor AB, Class B (Sweden) 5,000,000 59.586 .23
Williams PLC (United Kingdom) 11,076,923 58.268 .23
Anglo American PLC (Great Britain) (1) 1,000,000 56.103 .22
Preussag AG (Germany) 1,084,743 54.700 .21
Lend Lease Corp. Ltd. (Australia) 4,318,283 52.686 .20
TI Group PLC (United Kingdom) 5,781,991 41.630 .16
Lagardere Groupe SCA (France) 850,000 35.332 .14
AlliedSignal Inc. (USA) 500,000 29.969 .12
Canadian Pacific Ltd. (Canada) (1) 1,200,000 27.375 .11
FMC Corp. (USA)(1) 559,800 27.010 .10
LEISURE & TOURISM - 2.22%
Carnival Corp. (USA) 6,140,000 267.090 1.04
Seagram Co. Ltd. (Canada) 5,650,000 257.075 1.00
Starbucks Corp. (USA)(1) 1,970,000 48.819 .18
BEVERAGES & TOBACCO - 2.11%
Philip Morris Companies Inc. (USA) 10,290,000 351.789 1.37
Cia. Cervejaria Brahma, preferred nominative 3,278,600 39.343 .15
(ADR) (Brazil)
Southcorp Ltd. (Australia) 10,357,562 37.773 .14
PepsiCo, Inc. (USA) 1,000,000 30.250 .12
Gallaher Group PLC (United Kingdom) 2,905,100 20.180
Gallaher Group PLC (ADR) 300,000 8.156 .11
Coca-Cola Co. (USA) 375,000 18.023 .07
Foster's Brewing Group Ltd. (Australia) 6,000,000 16.910 .07
Asahi Breweries, Ltd. (Japan) 1,056,000 16.171 .06
South African Breweries PLC (United Kingdom)(1) 558,003 4.740 .02
GOLD MINES - 1.99%
Newmont Mining Corp. (USA) 6,100,000 157.838 .61
Barrick Gold Corp. (Canada) 7,000,000 152.250 .59
Placer Dome Inc. (Canada) 9,000,000 133.875 .51
Homestake Mining Co. (USA) 5,500,000 50.531 .20
Gold Fields Ltd. (South Africa) 4,191,105 19.408 .08
CHEMICALS - 1.78%
Monsanto Co. (USA) 2,421,900 86.432 .34
Praxair, Inc. (USA) 1,815,000 83.490 .32
BOC Group PLC (United Kingdom) 3,500,000 72.943 .28
Valspar Corp. (USA) 1,555,000 50.829 .20
Sherwin-Williams Co. (USA) 1,962,000 41.079 .16
Bayer AG (Germany) 950,000 37.929 .15
E.I. du Pont de Nemours and Co. (USA) 400,000 24.350 .09
Methanex Corp. (Canada)(1) 7,250,000 20.748 .08
Georgia Gulf Corp. (USA) 1,175,000 20.709 .08
L'Air Liquide (France) 125,235 19.894 .08
APPLIANCES & HOUSEHOLD DURABLES - 1.76%
Sony Corp. (Japan) 2,110,400 315.628 1.23
Koninklijke Philips Electronics NV (Netherlands) 1,358,000 136.813 .53
AUTOMOBILES - 1.69%
Suzuki Motor Corp. (Japan) 8,158,000 132.592 .52
Renault SA (France) 2,000,000 110.661 .43
Bayerische Motoren Werke AG (Germany) 2,089,100 59.021
Bayerische Motoren Werke AG, preferred 686,712 9.700 .27
Honda Motor Co., Ltd. (Japan) 1,296,000 54.335 .21
Ford Motor Co. (USA) 1,000,000 50.188 .19
General Motors Corp. (USA) 300,000 18.881 .07
FOREST PRODUCTS & PAPER - 1.57%
Champion International Corp. (USA) 4,200,000 215.775 .84
UPM-Kymmene Corp. (Finland) 1,953,000 66.627 .26
Louisiana-Pacific Corp. (USA) 2,550,000 39.844 .15
International Paper Co. (USA) 600,000 28.837 .11
Smurfit-Stone Container Corp. (USA)(1) 1,255,700 27.155 .11
Rayonier Inc. (USA) 600,000 25.200 .10
FOOD & HOUSEHOLD PRODUCTS - 1.54%
Groupe Danone (France) 350,000 85.261 .33
Reckitt & Colman PLC (United Kingdom) 6,503,125 81.629 .32
Nestle SA (Switzerland) 39,000 73.398 .29
Archer Daniels Midland Co. (USA) 4,780,000 58.256 .23
Unilever NV (Netherlands) 300,000 20.437
Unilever NV (New York Registered shares) 200,000 13.625 .13
Sara Lee Corp. (USA) 1,250,000 29.297 .11
Kellogg Co. (USA) 571,900 21.411 .08
Colgate-Palmolive Co. (USA) 300,000 13.725 .05
UTILITIES: ELECTRIC & GAS - 1.01%
Williams Companies, Inc. (USA) 5,000,000 187.187 .73
National Power PLC (United Kingdom) 9,300,000 72.617 .28
MERCHANDISING - 0.99%
Wal-Mart Stores, Inc. (USA) 2,600,000 123.663 .48
Kingfisher PLC (United Kingdom) 4,371,632 47.070 .18
Home Depot, Inc. (USA) 575,000 39.459 .15
Cifra, SA de CV, Class C (Mexico) (1) 3,624,400 5.589
Cifra, SA de CV, Class V (1) 10,995,004 17.285 .10
Koninklijke Ahold NV (Netherlands) 637,693 21.007 .08
METALS: NONFERROUS - 0.97%
Alcoa Inc. (USA) 2,400,000 148.950 .58
Billiton PLC (United Kingdom) 10,372,416 43.439 .17
WMC Ltd. (Australia) 7,000,000 35.621 .13
Pechiney, Class A (France) 406,909 22.558 .09
RECREATION & OTHER CONSUMER PRODUCTS - 0.86%
Nintendo Co., Ltd. (Japan) 650,000 103.751 .40
Hasbro, Inc. (USA) 2,700,000 57.881 .22
EMI Group PLC (United Kingdom) 4,242,369 30.475 .12
Eastman Kodak Co. (USA) 400,000 30.175 .12
AEROSPACE & MILITARY TECHNOLOGY - 0.66%
Bombardier Inc., Class B (Canada) 7,495,000 124.355 .48
Boeing Co. (USA) 600,000 25.575 .10
Northrop Grumman Corp. (USA) 300,000 19.069 .08
ENERGY EQUIPMENT - 0.61%
Baker Hughes Inc. (USA) 4,138,100 120.005 .47
Schlumberger Ltd. (Netherlands Antilles) 598,300 37.282 .14
OTHER INDUSTRIES - 2.44%
De Beers Consolidated Mines Ltd. (South Africa)(1) 2,000,000 55.069
De Beers Consolidated Mines Ltd. (ADR) 1,000,000 27.000 .32
Usinor Sacilor (France) 5,500,000 77.692 .31
AMR Corp. (USA)(1) 1,100,000 59.950 .24
ADVANTEST CORP. (Japan) 400,000 57.906 .22
Japan Airlines Co., Ltd. (Japan) 15,000,000 57.812 .22
Bergesen d.y. AS, Class A (Norway) 2,650,000 43.240
Bergesen d.y. AS, Class B 795,000 12.354 .21
NIKE, Inc., Class B (USA) 900,000 51.187 .20
Caterpillar Inc. (USA) 700,000 38.369 .15
Delphi Automotive Systems Corp. (USA) 1,871,679 30.064 .12
Deere & Co. (USA) 750,000 29.015 .11
Allegheny Teledyne Inc. (USA) 1,697,600 28.647 .11
Cie. de Saint-Gobain (France) 100,000 18.657 .07
Kvaerner ASA, Class A (Norway) 922,936 18.526 .07
Cia. Vale do Rio Doce, preferred nominative, 38,400 0.000
Class B (Brazil)(1,3)
Cia. Vale do Rio Doce, preferred nominative (ADR) 771,000 16.191 .06
Bridgestone Corp. (Japan) 286,000 8.012 .03
MISCELLANEOUS - 1.64%
Other equity securities in initial period of acquisition 422.415 1.64
------------------
TOTAL EQUITY SECURITIES(cost: $14,160.957 million) 22,330.7 86.71
------------------
BONDS & NOTES Principal Amount
(Millions)
GOVERNMENTS AND GOVERNMENTAL
AUTHORITIES (EXCLUDING U.S.) - 0.43%
Brazil (Federal Republic of), Bearer 8.00% 2014 (4) $165.905 103.898
Brazil (Federal Republic of), Front-Loaded Interest 9.562 5.988 .43
Reduction Bond, Series L, 8.00% 2014 (4)
------------------
TOTAL BONDS AND NOTES (cost: $99.764 million) 109.886 .43
------------------
SHORT-TERM SECURITIES
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 10.25%
Procter & Gamble Co. 5.11%-5.65% due 122.000 120.784 .47
10/20/1999-1/27/2000
National Australia Funding (Delaware) Inc. 105.500 104.358 .41
5.20%-5.77% due 10/12/1999-2/7/2000
DaimlerChrysler NA Holdings 5.15%-5.73% 102.500 100.606 .39
due 12/1/1999-2/11/2000
ANZ (Delaware) Inc. 5.13%-5.76% due 101.000 100.070 .39
10/6/1999-1/18/2000
BMW U.S. Capital Corp. 5.12%-5.28% due 100.000 99.655 .38
10/19-10/28/1999
Duke Energy Corp. 5.35%-5.68% due 1/25-2/4/2000 100.000 98.027 .38
BellSouth Telecommunications, Inc. 5.65%-5.67% 100.000 97.787 .38
due 2/8-2/24/2000
Abbey National North America 5.14%-5.36% due 96.000 95.611 .37
10/7-12/3/1999
UBS Finance (Delaware) Inc. 5.12%-5.40% due 96.700 95.594 .37
10/14/1999-2/9/2000
Associates First Capital Corp. 5.13%-5.72% due 96.600 95.343 .37
10/8/1999-2/22/2000
BP America Inc. 4.75%-5.33% due 10/4/1999-2/10/2000 91.000 89.984 .35
France Telecom, SA 5.20%-5.33% due 11/2-11/9/1999 90.000 89.515 .35
CBA (Delaware) Finance Inc. 5.14%-5.35% due 87.000 86.491 .34
10/12-12/2/1999
Westpac Capital Corp. 5.34% due 1/27-1/28/2000 85.000 83.351 .32
Toronto-Dominion Holdings USA Inc. 5.28%-5.38% 83.000 81.911 .32
due 11/22/1999-2/8/2000
Archer Daniels Midland Co. 5.40%-5.70% due 80.000 78.221 .30
2/1-3/13/2000
General Electric Capital Corp. 5.40%-5.78% due 80.000 78.185 .30
1/25-3/2/2000
Merck & Co., Inc. 5.30%-5.34% due 2/4-2/7/2000 78.000 76.406 .29
Internationale Nederlanden (U.S.) Funding Corp. 75.000 74.459 .29
5.30%-5.31% due 11/18/1999
Heinz H.J. Co. 5.28%-5.33% due 10/18/1999-1/28/2000 75.000 74.301 .29
Cregen North America Inc. 5.30%-5.33% due 75.000 74.281 .29
11/19-12/16/1999
E.I. du Pont de Nemours and Co. 5.55% due 75.300 73.708 .29
2/10-2/11/2000
KfW International Finance Inc. 5.11%-5.20% due 73.500 73.118 .28
10/15-11/29/1999
British Columbia (Province of) 4.79%-4.86% due 69.820 69.550 .27
10/5-11/9/1999
FCE Bank PLC 5.11%-5.15% due 10/7-10/25/1999 57.000 56.857 .22
Halifax PLC 4.83%-5.35% due 10/1/1999-1/18/2000 56.000 55.552 .22
Monsanto Co. 4.81%-5.72% due 11/4/1999-2/25/2000 53.500 52.822 .21
IBM Credit Corp. 5.32%-5.55% due 10/20/1999-1/28/2000 50.000 49.450 .19
Emerson Electric Co. 5.30% due 1/20-1/24/2000 50.000 49.092 .19
General Motors Acceptance Corp. 5.12%-5.29% 48.300 48.108 .19
due 10/27/1999
British Telecommunications PLC 5.40%-5.75% 40.000 39.201 .15
due 2/2/2000
Canadian Wheat Board 5.08%-5.10% due 10/22-11/19/1999 35.000 34.805 .14
Ford Motor Credit Co. 5.64% due 2/10/2000 25.700 25.153 .10
Lloyds Bank PLC 5.10% due 10/6/1999 25.000 24.978 .10
Reseau Ferre de France 5.13% due 10/22/1999 25.000 24.920 .10
Svenska Handelsbanken Group 5.33% due 11/12/1999 25.000 24.841 .10
Telstra Corp. Ltd. 5.12%-5.30% due 10/5-11/19/1999 24.000 23.916 .09
Vattenfall Treasury AB 5.13% due 10/4/1999 16.000 15.991 .06
FEDERAL AGENCY DISCOUNT NOTES - 1.31%
Fannie Mae 4.72%-5.40% due 10/1/1999-2/9/2000 174.677 173.467 .67
Freddie Mac 4.72%-5.52% due 10/18/1999-2/24/2000 166.938 164.674 .64
CERTIFICATES OF DEPOSIT - 0.78%
Canadian Imperial Bank of Commerce 5.40% due 50.000 49.999 .20
11/16-11/17/1999
Lloyds Bank PLC 5.43% due 12/8/1999 50.000 49.999 .20
National Westminster Bank PLC 5.25%-5.62% due 50.000 49.962 .20
11/8/1999-2/1/2000
Svenska Handelsbanken Group 5.56% due 1/24/2000 25.000 24.960 .09
Rabobank Nederland NV 5.50% due 1/27/2000 25.000 24.959 .09
OTHER - 0.28%
Canada Bills 5.18%-5.51% due 11/30/1999-2/23/2000 75.000 73.660 .28
NON-U.S. CURRENCY - 0.02%
New Taiwanese Dollar NT$241.104 7.618 .02
------------------
TOTAL SHORT-TERM SECURITIES (cost: $3,258.414 million) 3,256.30 12.64
------------------
TOTAL INVESTMENT SECURITIES (cost: $17,519.135 million) 25,696.8 99.78
Excess of cash and receivables over payables 55.389 .22
------------------
NET ASSETS 25,752.2 100.000
(1) Non-income-producing securities
(2) Purchased in a private placement transaction;
resale tot he public may require registration or
sale only to qualified institutional buyers.
(3) Valued under procedures established by the
Board of Directors.
(4) Payment in kind; the issuer has the option of
paying additional securities in lieu of cash.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
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
</TABLE>
<TABLE>
New Perspective Fund
<S> <C>
Equity Securities Appearing in the Equity Securities Eliminated from the
Portfolio Since March 31, 1999 Portfolio Since March 31, 1999
AEGON AGA
AT&T, Liberty Media Group Alcatel
Caterpillar Asahi Breweries
Coca-Cola Brambles Industries
Delphi Automotive Systems ENI
E.I. du Pont de Nemours General Intrument
Elan Halliburton
Embratel Participacoes LTV
Fanuc Mattel
Ford Motor Mobil
Foster's Brewing Nissan Motor
Global Telesystems Silicon Graphics
Hon Hai Precision Standard Chartered Bank
Japan Airlines Suez Lyonnaise des Eaux
Kellogg Union Pacific
Kimberly-Clark Vivendi
Korea Telecom Volvo
Lucent Technologies York
NEC YPF
Newbridge Networks
Norsk Hydro
Nycomed Amersham
Orange
Pitney Bowes
Royal & Sun Alliance
Sara Lee
Shionogi
Telstra
Toronto-Dominion Bank
</TABLE>
<TABLE>
New Perspective Fund
Financial Statements
<S> <C> <C>
- ---------------------------------------------- ---------------- ----------------
Statement of Assets and Liabilities (dollars in
at September 30, 1999 millions)
- ---------------------------------------------- ---------------- ----------------
Assets:
Investment securities at market
(cost: $14,260.721) $22,440.593
Short-term securities
(cost: $3,258.414) 3,256.300
Cash 4.808
Receivables for-
Sales of investments $81.025
Sales of fund's shares 42.769
Dividends and accrued interest 48.164 171.958
---------------- ----------------
25,873.659
Liabilities:
Payables for-
Purchases of investments 82.909
Repurchases of fund's shares 24.051
Management services 8.561
Accrued expenses 5.856 121.377
---------------- ----------------
Net Assets at September 30, 1999-
Equivalent to $26.25 per share on
980,900,343 shares of $1 par value
capital stock outstanding (authorized
capital stock--1,000,000,000 shares) $25,752.282
================
Statement of Operations
for the year ended September 30, 1999 Unaudited
(dollars in
millions)
- ---------------------------------------------- ---------------- ----------------
Investment Income:
Income:
Dividends $ 257.542
Interest 160.235 $ 417.777
----------------
Expenses:
Management services fee 90.549
Distribution expenses 56.076
Transfer agent fee 18.723
Reports to shareholders 0.650
Registration statement and prospectus 1.202
Postage, stationery and supplies 3.217
Directors'/Trustees' fees 0.363
Auditing and legal fees 0.090
Custodian fee 4.026
Taxes other than federal income tax 0.349
Other expenses 0.292 175.537
---------------- ----------------
Net investment income 242.240
----------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 2,029.050
Net increase in unrealized appreciation on
investments 4,591.605
----------------
Net realized gain and unrealized appreciation
on investments 6,620.655
----------------
Net Increase in Net Assets Resulting
from Operations $ 6,862.895
================
- ---------------------------------------------- ---------------- ----------------
Statement of Changes in Net Assets (dollars in millions)
Year ended September 30
1999 1998
- ---------------------------------------------- ---------------- ----------------
Operations:
Net investment income $ 242.240 $ 225.434
Net realized gain on investments 2,029.050 1,406.817
Net change in unrealized appreciation
on investments 4,591.605 (1,486.638)
---------------- ----------------
Net increase in net assets
resulting from operations 6,862.895 145.613
---------------- ----------------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (178.626) (250.381)
Distributions from net realized gain on
investments (1,352.865) (944.065)
---------------- ----------------
Total dividends and distributions (1,531.491) (1,194.446)
---------------- ----------------
Capital Share Transactions:
Proceeds from shares sold: 174,677,528
and 141,823,983 shares, respectively 4,287.650 3,063.856
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 66,803,759 and 58,921,097
shares respectively 1,462.075 1,133.982
Cost of shares repurchased: 124,489,632
and 112,476,829 shares, respectively (3,035.817) (2,398.119)
---------------- ----------------
Increase in net assets resulting from
capital share transactions 2,713.908 1,799.719
---------------- ----------------
Total Increase in Net Assets 8,045.312 750.886
Net Assets:
Beginning of year 17,706.970 16,956.084
---------------- ----------------
End of year (including undistributed
net investment income: $108.492
and $85.257, respectively) $25,752.282 $17,706.970
================ ================
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 financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. 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. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Short-term securities maturing within 60 days are
valued at amortized cost, which approximates market value. 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 and 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 and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
In the event securities are purchased on a delayed delivery or "when-issued"
basis, the fund will instruct the custodian to segregate liquid assets
sufficient to meet its payment obligations in these transactions. Dividend
income is recognized on the ex-dividend date, and interest income is recognized
on an accrual basis. Market discounts and premiums and original issue discounts
on securities purchased are amortized daily over the expected life of the
security.
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. NON-U.S. INVESTMENTS
INVESTMENT RISK - Investments in securities of non-U.S. issuers in certain
countries involve special investment risks. These risks may include, but are
not limited to, investment and repatriation restrictions, revaluation of
currencies, adverse political, social, and economic developments, government
involvement in the private sector, limited and less reliable investor
information, lack of liquidity, certain local tax law considerations, and
limited regulation of the securities markets.
TAXATION - Dividend and interest income is recorded net of non-U.S. taxes
paid. For the year ended September 30, 1999, such non-U.S. taxes were
$24,092,000.
CURRENCY GAINS AND LOSSES - Net realized currency losses on dividends,
interest, sales of non-U.S. bonds and notes, and other receivables and
payables, on a book basis, were $1,540,000 for the year ended September 30,
1999.
3. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income and net capital gains for the fiscal year. As a
regulated investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.
As of September 30, 1999, net unrealized appreciation on investments for
federal income tax purposes aggregated $8,178,746,000, of which $8,849,242,000
related to appreciated securities and $670,496,000 related to depreciated
securities. During the year ended September 30, 1999, the fund realized, on a
tax basis, a net capital gain of $2,035,050,000 on securities transactions. Net
losses related to non-U.S. currency transactions of $6,000,000 were treated as
an adjustment to ordinary income for federal income tax purposes. The cost of
portfolio securities for federal income tax purposes was $17,518,147,000 at
September 30, 1999.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $90,549,000 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 year ended
September 30, 1999, distribution expenses under the Plan were $56,076,000.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $14,809,000 (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.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $18,723,000.
DEFERRED 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 September 30, 1999, aggregate
deferred amounts and earnings thereon since the deferred compensation plan's
adoption (1993), net of any payments to Directors, were $919,000.
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.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $6,543,756,000 and $5,768,560,000, respectively,
during the year ended September 30, 1999.
As of September 30, 1999, accumulated undistributed net realized gain on
investments was $1,875,244,000 and additional paid-in capital was
$14,609,485,000. The fund reclassified $40,379,000 and $117,444,000 from
undistributed net investment income and undistributed net realized gains,
respectively, to additional paid-in capital for the year ended September 30,
1999, as a result of permanent differences between book and tax.
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 $4,026,000 includes $104,000 that was paid by these
credits rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C>
Per-Share Data and Ratios
Year EndedSeptember 30
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Year $20.50 $21.86 $17.77 $16.98 $15.40
------------------------------------------------
Income From Investment Operations:
Net investment income .26 .27 .29 .32 .31
Net gains or losses on securities (both
realized and unrealized) 7.26 (.11) 4.81 1.40 2.35
------------------------------------------------
Total from investment operations 7.52 .16 5.10 1.72 2.66
----------------------------- ------------------
Less Distributions:
Dividends (from net investment income) (.20) (.31) (.323) (.321) (.237)
Dividends (from net realized non-U.S. currency gains) - - (.007) (.009) (.003)
Distributions (from capital gains) (1.57) (1.21) (.680) (.600) (.840)
----------------------------- ------------------
Total distributions (1.77) (1.52) (1.01) (.93) (1.08)
----------------------------- ------------------
Net Asset Value, End of Year $26.25 $20.50 $21.86 $17.77 $16.98
==================== ======== ======== =======
Total Return (2) 38.43% 1.23% 29.97% 10.64% 18.63%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $25,752 $17,707 $16,956 $11,688 $8,817
Ratio of expenses to average net assets 0.77% .77% .79% .82% .83%
Ratio of net income to average net assets 1.06% 1.27% 1.56% 2.00% 2.12%
Portfolio turnover rate 29.14% 29.71% 25.68% 18.12% 22.40%
(1) Realized non-U.S. currency gains are treated as ordinary
income for federal income tax purposes.
(2) Excludes maximum sales charge of 5.75%.
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of New Perspective Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of New Perspective Fund (the "Fund")
at September 30, 1999, the results of its operations, the changes in its net
assets and the per-share data and ratios for the years indicated in conformity
with generally accepted accounting principles. These financial statements and
per-share data and ratios (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at September 30, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
October 29, 1999
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by the
fund were earned from the following sources:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Dividends and
Distributions per Share
To Shareholders of Record Payment Date From Net From Net Realized
Short-term Gains From Net Realized
Long-term Gains
Investment Income
December 15, 1998 December 16, 1998 $.14 - $1.57
June 4, 1999 June 7, 1999 .06 - -
</TABLE>
The fund also designates as a capital gain distribution a portion of earnings
and profits paid to shareholders in redemption of their shares.
The fund makes an election under the Internal Revenue Code Section 853 to pass
through non-U.S. taxes paid by the fund to its shareholders. The amount of
non-U.S. taxes for the fiscal year ended September 30, 1999 is $0.023 on a
per-share basis. Foreign source income earned by the fund was $0.223 on a
per-share basis. Shareholders are entitled to a foreign tax credit or an
itemized deduction, at their option. Generally, it is more advantageous to
claim a credit rather than to take a deduction.
Corporate shareholders may exclude up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, 30% of the dividends
paid by the fund from net investment income represents qualifying dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV AND OTHER TAX
INFORMATION WHICH WERE MAILED IN JANUARY 2000 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 1999 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
NEW PERSPECTIVE FUND
BOARD OF DIRECTORS
ELISABETH ALLISON, Cambridge, Massachusetts
Administrative Director, ANZI, Ltd.
(financial publishing and consulting);
publishing consultant, Harvard Medical School
MICHAEL R. BONSIGNORE, Minneapolis, Minnesota
Chairman of the Board and Chief Executive Officer,
Honeywell Inc.
GINA H. DESPRES, Washington, D.C.
President of the fund
Senior Vice President,
Capital Research and Management Company
ROBERT A. FOX, Livingston, California
President and Chief Executive Officer,
Foster Farms Inc.
ALAN GREENWAY, La Jolla, California
Private investor; President,
Greenway Associates, Inc.
(management consulting services)
KOICHI ITOH, Tokyo, Japan
Group Vice President-Asia/Pacific, Autosplice, Inc.;
former President and Chief Executive Officer,
IMPAC (management consulting services);
former managing partner, VENCA Management
(venture capital)
WILLIAM H. KLING, St. Paul, Minnesota
President, Minnesota Public Radio;
President, Greenspring Company;
former President, American Public Radio
(now Public Radio International)
JON B. LOVELACE, Los Angeles, California
Vice Chairman of the Board of the fund
Chairman Emeritus,
Capital Research and Management Company
JOHN G. MCDONALD, Stanford, California
The IBJ Professor of Finance,
Graduate School of Business,
Stanford University
WILLIAM I. MILLER, Columbus, Indiana
Chairman of the Board,
Irwin Financial Corporation
KIRK P. PENDLETON, Southampton, Pennsylvania
Chairman of the Board and
Chief Executive Officer, Cairnwood, Inc.
(venture capital investment)
DONALD E. PETERSEN, Birmingham, Michigan
Retired; former Chairman of the Board and
Chief Executive Officer, Ford Motor Company
WALTER P. STERN, New York, New York
Chairman of the Board of the fund
Vice Chairman of the Board,
Capital Group International, Inc.
OTHER OFFICERS
GREGG E. IRELAND, Washington, D.C.
Executive Vice President of the fund
Senior Vice President,
Capital Research and Management Company
DARCY B. KOPCHO, Los Angeles, California
Senior Vice President of the fund
Executive Vice President and Director,
Capital Research Company
THIERRY VANDEVENTER, Geneva, Switzerland
Senior Vice President of the fund
Director, Capital Research and
Management Company
JONATHAN O. KNOWLES, Ph.D., London, England
Vice President of the fund
Vice President, Capital Research Company
CATHERINE M. WARD, Los Angeles, California
Vice President of the fund
Senior Vice President and Director,
Capital Research and Management Company
VINCENT P. CORTI, Los Angeles, California
Secretary of the fund
Vice President - Fund Business
Management Group,
Capital Research and Management Company
R. MARCIA GOULD, Brea, California
Treasurer of the fund
Vice President - Fund Business
Management Group,
Capital Research and Management Company
DAYNA YAMABE, Brea, California
Assistant Treasurer of the fund
Assistant Vice President -
Fund Business Management Group,
Capital Research and Management Company
Members of the Advisory Board
DAVID I. FISHER, Los Angeles, California
Chairman of the Board, Capital Group
International, Inc.; Chairman of the Board,
Capital Guardian Trust Company
JEAN GANDOIS, Paris, France
Chairman of the Board of Cockerill-Sambre;
former President, Conseil National du Patronat
Francais; former Chairman of the Board and
Chief Executive Officer, Pechiney; former
Chairman of the Board, Pechiney International
CLAUDIO X. GONZALEZ LAPORTE,
Mexico DF, Mexico
Chairman of the Board and Chief Executive Officer,
Kimberly-Clark de Mexico, SA de CV
SIR PETER HOLMES, London, England
Director and former Chairman of the Board and
Managing Director, The Royal Dutch/Shell Group
of Companies
JAE H. HYUN, New York, New York
Chairman of the Board, Tong Yang Group
BARON GUALTHERUS KRAIJENHOFF,
Nijmegen, Netherlands
Chairman of the Supervisory Council, Akzo NV
PIERRE LESCURE, Paris, France
Chairman of the Board and Chief
Executive Officer, Canal+
SHIJURO OGATA, Tokyo, Japan
Non-executive Director, Fuji Xerox Co. Ltd.
and Horiba Ltd.
ALESSANDRO OVI, Rome, Italy
Chief Executive Officer, Tecnitel
ROZANNE L. RIDGWAY, Washington, D.C.
Chair, Baltic American Enterprises Fund;
former Co-Chair, Atlantic Council of the
United States
HENRY B. SCHACHT, New York, New York
Director and Senior Advisor, E.M. Warburg,
Pincus & Co., LLC; Director, Lucent Technologies
ORVILLE H. SCHELL, Berkeley, California
Dean, Graduate School of Journalism,
University of California at Berkeley
BRUCE B. TEELE, Melbourne, Australia
Chairman of the Board, Australian Foundation
Investment Co., Ltd.; former Chairman of the Board
and Chief Executive Officer, J.B. Were & Son
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
400 South Hope Street
Los Angeles, California 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
This report is for the information of shareholders of New Perspective Fund, but
it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund. If used as sales material after
December 31, 1999, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
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.
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 computer systems to process date-related information properly
following the turn of the century. Other preparations continue, including
external monitoring and contingency planning. 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
