[The American Funds Group(r)]
New Perspective Fund
2000 Semi-Annual Report
for the six months ended March 31
[cover photographs: close-up of atlas, 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 is one of the 29 mutual funds in The American Funds Group,(r)
the nation's third-largest mutual fund family. For nearly seven decades,
Capital Research and Management Company, the American Funds adviser, has
invested with a long-term focus based on thorough research and attention to
risk.
Results at a Glance
(as of March 31, 2000, with all distributions reinvested)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Total returns One year Lifetime
Six months (average
annual
compound
return since
March 13,
1973)
New Perspective Fund +30.3% +41.0% +16.2%
Morgan Stanley Capital +18.2% +22.2% +12.7%
International World Index(1)
Average global fund(2) +28.9% +37.7% +14.8%
</TABLE>
(1)The index is unmanaged and does not reflect sales charges, commissions or
expenses.
(2)Source: Lipper Inc. Averages do not reflect the effects of sales charges.
Fund results in this report were calculated for Class A shares at net asset
value (without a sales charge) unless otherwise indicated. Here are the average
annual compound returns on a $1,000 investment for periods ended March 31,
2000, with all distributions reinvested:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
10 years 5 years 1 year
Class A Shares +17.06% +23.05% +32.94%
Reflecting 5.75% maximum sales charge
</TABLE>
Please see the inside back cover for important information about Class A and B
shares. Results for Class B shares are not shown because of the brief time
between their introduction on March 15 and the end of the fund's fiscal period.
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,
POLITICAL INSTABILITY, DIFFERING SECURITIES REGULATIONS AND PERIODS OF
ILLIQUIDITY, WHICH ARE DETAILED IN THE FUND'S PROSPECTUS.
<PAGE>
Fellow Shareholders:
Global stock markets posted impressive gains during the six months ended March
31, largely driven by a boom in so-called new economy stocks. The rally helped
push the value of your investment in New Perspective Fund considerably higher.
For the six months, the fund returned a remarkable 30.3% if, like most
shareholders, you reinvested
the income dividend of 11 cents a share and the capital gain distribution of
$2.34 a share that were paid in December. These results came on the heels of
solid returns for the previous six months, bringing New Perspective's 12-month
total return to 41.0%.
Your fund finished the six months ahead of relevant benchmarks. The 264 global
stock funds tracked by Lipper Inc. rose an average of 28.9% with dividends
reinvested. On the same basis, the unmanaged Morgan Stanley Capital
International (MSCI) World Index gained 18.2%. The index measures 22 major
stock markets, including the United States.
As the table at left shows, the fund has also outpaced both benchmarks over
longer, more meaningful periods.
A global boom - for some
Global equity markets made significant progress during the six months. Those
gains occurred within a very narrow range, though, as investors clamored for
technology, media and telecommunications issues - to the exclusion of most
other types of stocks. The result was a sharp divergence between the best- and
worst-performing sectors of the market.
In the U.S., where New Perspective has the greatest concentration of assets,
stock prices closed the period 18.3%(1) higher. Technology-related issues
accounted for the bulk of the increase. Beneficiaries ran the gamut from such
established companies, and fund holdings, as Advanced Micro Devices, Oracle and
Cisco Systems, to riskier "dot-com" ventures in which the fund has not
invested. The technology advance obscured steep declines in most other areas -
particularly among banks, utilities and insurance companies, which were hobbled
by rising interest rates. That disparity generally held true for markets
outside the U.S. as well.
(1)Country returns are based on MSCI indexes for the six months ended March 31,
2000. They are expressed in dollar terms and assume reinvestment of dividends.
Stock prices in Europe bounced back from a relatively lackluster summer. The
continent's budding economic revival and a record wave of merger activity
helped boost investor confidence - and stock prices - particularly for media
and telecommunications issues. Among markets well-represented in the portfolio,
Sweden (+72.4%), Germany (+33.3%) and France (+25.1%) all rose impressively.
Finland (+111.3%) was Europe's biggest gainer, although the lion's share of
that increase came from Nokia, which represents some 70% of the value of that
country's market index; the wireless phone maker is also a significant holding
in the fund. The United Kingdom, meanwhile, returned a more modest 4.0% in the
face of rising interest rates.
[Begin Sidebar]
Where New Perspective's Assets Were Invested
percent invested by country
<TABLE>
<CAPTION>
<S> <C> <C>
3/31/2000 9/30/1999
Asia/Pacific Rim 19.4% 16.5%
Japan 11.8 10.9
Taiwan 2.8 1.6
Australia 2.6 2.6
South Korea 1.9 1.1
New Zealand .3 .3
Europe 29.7% 29.1%
United Kingdom 9.9 8.7
France 4.0 4.1
Germany 3.4 5.0
Netherlands 3.1 3.2
Sweden 2.4 1.8
Finland 2.1 1.4
Italy 1.5 1.4
Ireland .9 .4
Switzerland .8 1.2
Spain .6 .8
Norway .5 .6
Denmark .5 .5
North America 37.8% 38.0%
United States 32.2 31.6
Canada 3.8 4.9
Mexico 1.8 1.5
Other 2.3% 3.5%
Cash & Equivalents 10.8% 12.9%
100.0% 100.0%
</TABLE>
[End Sidebar]
Asian stocks continued to rebound during the six months, although somewhat less
vigorously than in the previous half-year. Governments and businesses in Asia
are taking drastic steps to stimulate a turnaround, but the fragility of the
region's recovery became apparent at the end of March, as Japan slipped back
into a recession after a brief period of growth. Technology stocks roared ahead
regardless, pushing market levels higher throughout Asia. In Japan, a
strengthening in the yen boosted returns for U.S. investors to 16.6%; South
Korea (+16.7%), Hong Kong (+30.0%) and Taiwan (+34.6%) also rose strongly.
Getting there early
New Perspective was well-positioned to benefit from the surge in new economy
stocks. The fund invests in global growth opportunities wherever our research
uncovers them. Our analysts recognized early the potential of innovative
companies to capitalize on changes in technology and communications. We began
building positions in many of these companies some time ago. Today, technology,
media and telecommunications stocks represent about 45% of net assets; capital
appreciation accounts for a good deal of that concentration.
Not surprisingly, given the fund's superior return, nearly all of the fund's 10
largest holdings posted sizable six-month increases. Notable among them were
Ericsson and Nokia, which more than doubled in price; Micron Technology, Time
Warner and Taiwan Semiconductor Manufacturing also appreciated significantly.
AstraZeneca and Pfizer, the only two to fare poorly during the period, were
hurt by overall weakness among pharmaceutical stocks.
Reflecting our company-by-company approach, New Perspective is broadly
diversified. The companies in the portfolio are based in more than 20 countries
and represent a broad range of industries. In keeping with the fund's unique
mandate, all are businesses with a global focus, no matter where they are
based.
Looking forward
In April, almost immediately following the close of the reporting period, the
technology sector experienced a severe pullback. Internet stocks were among the
hardest hit, thus sparing New Perspective Fund from the brunt of the decline.
Still, given the current market skittishness, it remains to be seen whether the
worst is behind us.
At the same time, we have begun to look elsewhere for more reasonable
valuations. The widening disparity between market "haves" and "have-nots" has
created attractive opportunities among sectors that are currently out of favor,
including banking, basic materials and leisure. We are enthusiastic about a
number of profitable, fundamentally solid companies, and have been investing
selectively in them.
Finally, a word of caution: While a 30% six-month return is gratifying indeed,
we must also point out that it is close to double the 16% average yearly return
earned by the fund over its lifetime, a figure that is itself high by
historical standards. We would therefore urge shareholders to set realistic
expectations for their long-term goals and not extrapolate future returns from
these substantial gains.
Please note that in March, the Board of Directors approved a proposal to
eliminate the June dividend distribution. Dividends and capital gains will now
be distributed once a year, in December, a move that should have record-keeping
and cost-saving benefits for shareholders.
We look forward to reporting to you in six months.
Cordially,
[signature]
Walter P. Stern
Chairman of the Board
[signature]
Gina Despres
President
May 12, 2000
<TABLE>
New Perspective Fund, Inc.
Investment Portfolio, March 31, 2000
LARGEST INDUSTRY HOLDINGS
11.51% Electronic Components
10.24% Diversified Telecommunication
Services
8.65% Electrical & Electronics
8.56% Health & Personal Care
6.59% Broadcasting & Publishing
43.20% Other Industries
0.43% Bonds & Notes
10.82% Cash and Equivalents
<S> <C> <C> <C>
Market Percent
Value of Net
EQUITY SECURITIES Shares (Millions) Assets
-------------------------------------- -------- -------- --------
ELECTRONIC COMPONENTS - 11.51%
Micron Technology, Inc. (USA) (1) 9,400,000 $ 1,184.400 3.31
Taiwan Semiconductor Manufacturing
Co. Ltd. (Taiwan) (1) 88,870,000 599.682 1.67
Samsung Electronics Co., Ltd.
(South Korea) 1,691,176 512.709 1.43
Advanced Micro Devices, Inc. (USA) (1) 7,000,000 399.437 1.12
Intel Corp. (USA) 2,000,000 263.875 .74
Hon Hai Precision Industry Co.
Ltd. (Taiwan) (1) 22,171,000 257.616 .72
Murata Manufacturing Co., Ltd.
(Japan) 914,000 221.487 .62
Texas Instruments Inc. (USA) 1,231,600 197.056 .54
Samsung Electro-Mechanics Co.
(South Korea) 2,045,050 142.876 .40
Rohm Co., Ltd. (Japan) 400,000 138.695 .39
Fanuc Ltd. (Japan) 515,000 53.821 .15
Nichicon Corp. (Japan) 1,400,000 42.424 .12
Hirose Electric Co., Ltd. (Japan) 300,000 42.220 .12
Altera Corp. (USA) (1) 400,000 35.700 .10
Motorola, Inc. (USA) 200,000 28.475 .08
DIVERSIFIED TELECOMMUNICATION
SERVICES - 10.24%
AT&T Corp. (USA) 9,134,300 513.804 1.43
Telefonos de Mexico, SA de CV,
Class L (ADR) (Mexico) 7,569,060 507.127 1.42
Telecom Italia SpA,
ordinary shares (Italy) 15,427,500 230.834
Telecom Italia SpA,
nonconvertible savings shares 27,127,995 184.988 1.16
Deutsche Telekom AG (Germany) 3,723,600 300.234 .84
Koninklijke PTT Nederland NV
(Netherlands) 1,687,863 193.390 .54
British Telecommunications PLC
(United Kingdom) 9,957,500 185.663 .52
Telefonica, SA (Spain) (1) 6,867,450 173.614 .48
France Telecom, SA (France) 1,000,000 172.368 .48
Tele Danmark AS (Denmark) 1,182,300 106.494
Tele Danmark AS, Class B (ADR) 1,398,600 64.947 .48
MCI WorldCom, Inc. (USA)(1) 3,738,100 169.383 .47
Nippon Telegraph and Telephone
Corp. (Japan) 10,135 160.451 .45
Global Crossing Ltd.
(USA - Incorporated in Bermuda) (1) 3,880,000 158.837 .44
Sprint FON Group (USA) 2,166,800 136.508 .38
Teleglobe Inc. (Canada) 3,021,100 82.201 .23
Telecom Corp. of New Zealand Ltd.
(New Zealand) 10,671,100 48.218
Telecom Corp. of New Zealand Ltd. (2) 4,917,700 22.221 .20
Embratel Participacoes SA,
preferred nominative (Brazil) 2,500,000 64.063 .18
SBC Communications Inc. (USA) 1,500,000 63.000 .18
VersaTel Telecom International
NV (Netherlands) (1) 1,300,000 60.302 .17
Global TeleSystems Group, Inc.
(USA) (1) 1,830,000 37.515 .10
Korea Telecom Corp. (South Korea) 383,250 33.990 .09
ELECTRICAL & ELECTRONICS - 8.65%
Telefonaktiebolaget LM Ericsson,
Class B (ADR)(Sweden) 8,350,000 735.405 2.05
Nokia Corp., Class A (ADR) (Finland) 1,800,000 391.050
Nokia Corp., Class A 1,375,000 290.991 1.90
Toshiba Corp. (Japan) 41,000,000 416.531 1.16
Siemens AG (Germany) 2,695,500 388.472 1.08
NEC Corp. (Japan) 10,250,000 301.646 .84
Hitachi, Ltd. (Japan) 11,500,000 136.155 .38
Cisco Systems, Inc. (USA) (1) 1,600,000 123.700 .35
Matsushita Communication Industrial
Co., Ltd. (Japan) 661,000 121.338 .34
Schneider SA (France) 1,350,000 86.227 .24
Lucent Technologies Inc. (USA) 1,072,500 65.154 .18
General Electric Co. (USA) 300,000 46.556 .13
HEALTH & PERSONAL CARE - 8.56%
AstraZeneca PLC (United Kingdom) 17,289,994 700.195
AstraZeneca PLC (ADR) 555,000 22.478 2.02
Pfizer Inc (USA) 17,940,000 655.931 1.83
Elan Corp., PLC (ADR) (Ireland) (1) 5,400,000 256.500 .72
Shionogi & Co., Ltd. (Japan) 10,633,000 188.164 .53
Teva Pharmaceutical Industries
Ltd. (ADR) (Israel) 3,200,000 119.400 .33
Avon Products, Inc. (USA) 4,083,300 118.671 .33
Merck & Co., Inc. (USA) 1,761,000 109.402 .31
Guidant Corp. (USA) (1) 1,600,000 94.100 .26
Bristol-Myers Squibb Co. (USA) 1,431,200 82.652 .23
Fujisawa Pharmaceutical Co. Ltd. (Japan) 2,360,000 82.517 .23
Chugai Pharmaceutical Co., Ltd. (Japan) 4,300,000 80.312 .22
Glaxo Wellcome PLC (ADR)
(United Kingdom) 1,044,000 59.834
Glaxo Wellcome PLC 563,264 16.126 .21
Genentech, Inc. (USA) (1) 466,800 70.954 .20
SmithKline Beecham PLC (ADR)
(United Kingdom) 900,000 59.456 .17
Medtronic, Inc. (USA) 1,150,000 59.153 .17
Luxottica Group SpA (ADR) (Italy) 2,112,700 51.761 .14
American Home Products Corp. (USA) 800,000 42.900 .12
Novartis AG (Switzerland) 30,000 41.074 .11
Nycomed Amersham PLC (United Kingdom) 4,700,000 37.492 .10
Pharmacia & Upjohn, Inc. (USA) 617,400 36.581 .10
Yamanouchi Pharmaceutical Co.,
Ltd. (Japan) 650,000 35.480 .10
Kimberly-Clark Corp. (USA) 500,000 28.000 .08
Shiseido Co., Ltd. (Japan) 1,250,000 16.936 .05
BROADCASTING & PUBLISHING - 6.59%
Time Warner Inc. (USA) 6,547,000 654.700 1.83
Viacom Inc., Class B (USA) (1) 9,780,000 515.895
Viacom Inc., Class A (1) 1,000,000 53.437 1.59
News Corp. Ltd. (ADR) (Australia) 4,791,600 269.527
News Corp. Ltd., preferred (ADR) 2,548,800 121.705
News Corp. Ltd. 3,964,162 55.373
News Corp. Ltd., preferred 2,044,279 24.189 1.31
CANAL + (France) 1,275,000 280.820 .78
Grupo Televisa, SA,
ordinary participation
certificates (ADR) (Mexico) (1) 1,316,400 89.515 .25
Clear Channel Communications,
Inc. (USA) (1) 1,000,000 69.062 .19
CBS Corp. (USA) (1) 1,045,000 59.173 .17
Pearson PLC (United Kingdom) 1,700,000 59.138 .17
Independent Newspapers, PLC (Ireland) 5,000,000 49.077 .14
Dow Jones & Co., Inc. (USA) 500,000 35.906 .10
Wolters Kluwer NV (Netherlands) 950,064 21.834 .06
WIRELESS TELECOMMUNICATION
SERVICES - 4.33%
Vodafone AirTouch PLC (United Kingdom) 217,146,362 1,207.024
Vodafone AirTouch PLC (ADR) 385,000 21.392 3.43
DDI Corp. (Japan) 39,500 321.877 .90
BANKING - 4.04%
Bank of America Corp. (USA) 5,017,400 263.100 .73
Sakura Bank, Ltd. (Japan) 27,700,000 210.117 .59
Bank of Nova Scotia (Canada) 7,719,000 154.486 .43
Westpac Banking Corp. (Australia) 18,023,011 112.787
Westpac Banking Corp.,
warrants, expire 2000 (1) 3,000,000 19.151 .37
ABN AMRO Holding NV (Netherlands) 5,881,034 131.162 .37
Royal Bank of Canada (Canada) 2,717,000 127.286 .36
Citigroup Inc. (USA) 2,062,500 122.332 .34
Fuji Bank, Ltd. (Japan) 9,855,000 92.367 .26
Australia and New Zealand
Banking Group Ltd. (Australia) 12,143,541 76.634 .21
Toronto-Dominion Bank (Canada) 1,223,700 32.373 .09
San Paolo-IMI SpA (Italy) 2,000,000 27.608 .08
First Union Corp. (USA) 700,000 26.075 .07
Banque Nationale de Paris (France) 290,000 22.910
Banque Nationale de Paris, guaranteed
value certificates, expire 2002 (1) 130,000 0.914 .07
Banco Santander Central
Hispano, SA (ADR) (Spain) 2,203,200 23.547 .07
DATA PROCESSING &
REPRODUCTION - 3.96%
Fujitsu Ltd. (Japan) 10,386,000 317.753 .89
Microsoft Corp. (USA) (1) 2,400,000 255.000 .71
Oracle Corp. (USA) (1) 2,200,000 171.738 .48
Computer Associates
International, Inc. (USA) 2,344,400 138.759 .39
International Business Machines
Corp. (USA) 1,000,000 118.000 .33
Dell Computer Corp. (USA) (1) 1,600,000 86.300 .24
Hewlett-Packard Co. (USA) 650,000 86.166 .24
Compaq Computer Corp. (USA) 2,300,000 61.238 .17
Cadence Design Systems,
Inc. (USA) (1) 2,440,500 50.640 .14
PeopleSoft, Inc. (USA) (1) 2,500,000 50.000 .14
Gateway, Inc. (USA) (1) 811,100 42.988 .12
Compal Electronics, Inc. (Taiwan) 9,809,800 40.847 .11
ENERGY SOURCES - 2.47%
TOTAL FINA SA, Class B (France) 715,688 107.256
TOTAL FINA SA, Class B (ADR) 3,871,884 285.067 1.10
Royal Dutch Petroleum Co.
(New York registered) (Netherlands) 1,952,000 112.362
Shell Transport and Trading
Co., PLC (United Kingdom) 3,000,000 24.324 .38
Norsk Hydro AS (Norway) 3,200,000 121.020 .34
Broken Hill Proprietary Co.
Ltd. (Australia) 5,391,198 58.368 .16
Canadian Occidental Petroleum
Ltd. (Canada) 2,200,000 50.396 .14
Talisman Energy Inc. (Canada) (1) 1,535,500 43.743 .12
Unocal Corp. (USA) 1,400,000 41.650 .12
Phillips Petroleum Co. (USA) 850,000 39.313 .11
LEISURE & TOURISM - 2.07%
Seagram Co. Ltd. (Canada) 5,628,900 334.920 .94
Carnival Corp. (USA) 6,140,000 152.349 .43
Starbucks Corp. (USA) (1) 2,170,000 97.243 .27
Mirage Resorts, Inc. (USA) 5,000,000 96.875 .27
Hilton Group PLC (United Kingdom) 12,000,000 55.841 .16
BUSINESS & PUBLIC SERVICES - 2.06%
Cendant Corp. (USA) (1) 18,275,000 338.087 .94
Reuters Group PLC (United Kingdom) 4,670,400 94.382 .26
TNT Post Groep (Netherlands) 2,914,488 65.503 .18
Interpublic Group of
Companies, Inc. (USA) 1,300,000 61.425 .17
Rentokil Initial PLC (United Kingdom) 18,200,000 46.957 .13
Pitney Bowes Inc. (USA) 750,000 33.516 .09
Adecco SA (Switzerland) (1) 45,000 31.158 .09
Yahoo! Inc. (USA) (1) 150,000 25.706 .07
United Utilities PLC (United Kingdom) 2,450,000 25.596 .07
United Parcel Service, Inc. (USA) 318,500 20.066 .06
FOOD & HOUSEHOLD PRODUCTS - 2.05%
Nestle SA (Switzerland) 108,000 193.774 .54
Groupe Danone (France) 723,449 160.031 .45
Uni-President Enterprises
Co. (Taiwan) (1) 105,000,000 89.171 .25
Archer Daniels Midland Co. (USA) 8,430,000 87.461 .24
Kellogg Co. (USA) 2,000,000 51.250 .14
Sara Lee Corp. (USA) 2,750,000 49.500 .14
Unilever NV (New York registered)
(Netherlands) 400,000 19.250
Unilever NV 300,000 14.809 .10
Reckitt Benckiser PLC (formerly
Reckitt & Colman PLC)
(United Kingdom) 2,653,125 25.232 .07
Nabisco Group Holdings Corp. (USA) 2,000,000 24.000 .07
Colgate-Palmolive Co. (USA) 300,000 16.913 .05
BEVERAGES & TOBACCO - 1.97%
Philip Morris Companies Inc. (USA) 13,555,000 286.350 .80
Coca-Cola Co. (USA) 1,950,000 91.528 .26
Coca-Cola Enterprises Inc. (USA) 3,000,000 64.688 .18
PepsiCo, Inc. (USA) 1,750,000 60.484 .17
Heineken NV (Netherlands) 1,100,000 58.830 .16
Cia. Cervejaria Brahma,
preferred nominative (ADR) (Brazil) 3,278,600 53.277 .15
Southcorp Ltd. (Australia) 12,739,149 36.842 .10
Gallaher Group PLC (United Kingdom) 2,905,100 15.046
Gallaher Group PLC (ADR) 300,000 5.906 .06
Lion Nathan Ltd. (New Zealand) 9,800,000 16.770 .05
Foster's Brewing Group Ltd. (Australia) 6,000,000 14.891 .04
APPLIANCES & HOUSEHOLD
DURABLES - 1.93%
Sony Corp. (Japan) 3,100,600 438.210 1.22
Koninkijke Philips Electronics
NV (Netherlands) 1,358,000 228.354 .64
Newell Rubbermaid Inc. (USA) 1,000,000 24.813 .07
MULTI-INDUSTRY - 1.92%
Invensys PLC (United Kingdom) 33,500,000 148.809 .42
Investor AB, Class B (Sweden) 8,900,000 139.419 .39
Lagardere Groupe SCA (France) 850,000 69.064 .19
Williams PLC (United Kingdom) 13,076,923 66.334 .19
Lend Lease Corp. Ltd. (Australia) 4,318,283 55.790 .16
Anglo American PLC (United Kingdom) 1,000,000 46.314 .13
Canadian Pacific Ltd. (Canada) 2,000,000 44.750 .12
FMC Corp. (USA) (1) 559,800 31.629 .09
Preussag AG (Germany) 647,119 29.807 .08
TI Group PLC (United Kingdom) 5,781,991 28.497 .08
Honeywell International Inc.
(formerly AlliedSignal Inc.) (USA) 500,000 26.344 .07
INSURANCE - 1.90%
American International Group, Inc. (USA) 1,498,046 164.036 .46
ING Groep NV (Netherlands) 2,603,331 141.101
ING Groep NV, warrants, expire 2008 (1) 590,000 11.243 .43
Allianz AG (Germany) 234,000 95.345 .27
QBE Insurance Group Ltd. (Australia) 15,869,886 67.409 .19
Fairfax Financial Holdings Ltd.
(Canada) (1) 352,800 43.265
Fairfax Financial Holdings Ltd. (1),(2) 93,000 11.405 .15
AEGON NV (Netherlands) 640,000 51.174 .14
Royal & Sun Alliance Insurance
Group PLC (United Kingdom) 5,200,000 32.678 .09
Yasuda Fire and Marine
Insurance Co., Ltd. (Japan) 7,158,000 32.328 .09
Assicurazioni Generali SpA (Italy) 1,100,000 30.347 .08
FOREST PRODUCTS & PAPER - 1.51%
Champion International Corp. (USA) 4,775,000 254.269 .71
Georgia-Pacific Corp. (USA) 2,000,000 79.125 .22
UPM-Kymmene Corp. (Finland) 1,953,000 55.171 .15
Smurfit-Stone Container Corp. (USA)(1) 2,625,700 44.473 .12
Louisiana-Pacific Corp. (USA) 2,550,000 35.381 .10
Rayonier Inc. (USA) 600,000 29.250 .08
Weyerhaeuser Co. (USA) 500,000 28.500 .08
Smurfit Group (Ireland) 8,050,000 18.886 .05
METALS: NONFERROUS - 1.22%
Alcoa Inc. (USA) 4,415,000 310.154 .87
Billiton PLC (United Kingdom) 10,372,416 48.557 .14
Pechiney, Class A (France) 956,909 46.962 .13
WMC Ltd. (Australia) 7,000,000 27.363 .08
CHEMICALS - 1.19%
Monsanto Co. (USA) 2,493,600 128.420 .36
BOC Group PLC (United Kingdom) 3,500,000 68.497 .19
Valspar Corp. (USA) 1,680,000 64.365 .18
Bayer AG (Germany) 1,200,000 53.894 .15
Imperial Chemical Industries PLC
(ADR) (United Kingdom) 1,046,000 33.734 .09
Praxair, Inc. (USA) 800,000 33.300 .09
L'Air Liquide (France) 225,235 31.296 .09
Methanex Corp. (Canada)(1) 7,250,000 14.635 .04
GOLD MINES - 1.18%
Barrick Gold Corp. (Canada) 9,500,000 149.031 .42
Newmont Mining Corp. (USA) 6,400,000 143.600 .40
Placer Dome Inc. (Canada) 9,000,000 73.125 .20
Homestake Mining Co. (USA) 7,000,000 42.000 .12
Gold Fields Ltd. (South Africa) 4,191,105 14.645 .04
AUTOMOBILES - 1.15%
Suzuki Motor Corp. (Japan) 8,658,000 131.602 .37
Honda Motor Co., Ltd. (Japan) 2,296,000 94.552 .26
Ford Motor Co. (USA) 1,500,000 68.906 .19
Renault SA (France) 1,500,000 64.638 .18
General Motors Corp. (USA) 400,000 33.125 .09
Bayerische Motoren Werke AG (Germany) 416,000 13.126
Bayerische Motoren Werke AG, preferred 686,712 9.995 .06
UTILITIES: ELECTRIC & GAS - 0.86%
Williams Companies, Inc. (USA) 5,000,000 219.688 .61
National Power PLC (United Kingdom) 9,300,000 46.614 .13
Scottish Power PLC (United Kingdom) 5,157,902 41.772 .12
MERCHANDISING - 0.78%
Ito-Yokado Co., Ltd. (Japan) 1,330,000 94.815 .26
Wal-Mart Stores, Inc. (USA) 1,350,000 74.925 .21
Kingfisher PLC (United Kingdom) 5,502,716 44.723 .12
Wal-Mart de Mexico, SA de CV,
Class V (formerly Cifra,
SA de CV) (Mexico) (1) 10,995,004 26.639
Wal-Mart de Mexico,
SA de CV, Class C (1) 3,624,400 8.449 .10
Home Depot, Inc. (USA) 480,000 30.960 .09
RECREATION & OTHER CONSUMER
PRODUCTS - 0.71%
Nintendo Co., Ltd. (Japan) 760,000 133.236 .37
Hasbro, Inc. (USA) 2,700,000 44.550 .12
Christian Dior SA (France) 150,000 34.718 .10
EMI Group PLC (United Kingdom) 2,052,091 21.841 .06
Eastman Kodak Co. (USA) 400,000 21.725 .06
AEROSPACE & MILITARY
TECHNOLOGY - 0.63%
Bombardier Inc., Class B (Canada) 7,770,000 195.120 .54
Northrop Grumman Corp. (USA) 600,000 31.762 .09
MACHINERY & ENGINEERING - 0.58%
Mitsubishi Heavy Industries,
Ltd. (Japan) 33,000,000 103.526 .29
Deere & Co. (USA) 1,000,000 38.000 .11
Caterpillar Inc. (USA) 700,000 27.606 .08
Smiths Industries PLC (United Kingdom) 1,800,000 21.949 .06
Kvaerner ASA, Class A (Norway) (1) 922,936 13.765 .04
OTHER INDUSTRIES - 1.94%
CMG PLC (United Kingdom) 880,000 75.709 .21
Usinor Sacilor (France) 4,700,000 74.712 .21
De Beers Consolidated Mines Ltd.
(South Africa) 2,000,000 46.897
De Beers Consolidated Mines Ltd. 1,000,000 22.937 .20
Japan Airlines Co., Ltd. (Japan) 25,000,000 66.774 .19
Bergesen d.y. AS, Class A (Norway) 2,650,000 47.993
Bergesen d.y. AS, Class B 795,000 13.833 .17
Baker Hughes Inc. (USA) 2,000,000 60.500 .17
Schlumberger Ltd. (Netherlands Antilles) 598,300 45.770 .13
Associates First Capital
Corp., Class A (USA) 2,000,000 42.875 .12
ADVANTEST CORP. (Japan) 200,000 42.327 .12
NIKE, Inc., Class B (USA) 900,000 35.663 .10
AMR Corp. (USA) (1) 1,100,000 35.062 .10
Electronic Data Systems Corp. (USA) 450,000 28.884 .08
Delphi Automotive Systems Corp. (USA) 1,704,000 27.264 .08
Cie. de Saint-Gobain (France) 100,000 12.784 .04
Bridgestone Corp. (Japan) 286,000 6.292 .02
Cia. Vale do Rio Doce,
preferred nominative,
Class B (Brazil) (1),(3) 38,400 0.000 .00
MISCELLANEOUS - 2.75%
Other equity securities in initial
period of acquisition 980.087 2.75
---------- ----------
TOTAL EQUITY SECURITIES
(cost: $17,976.899 million) 31,776.755 88.75
---------- ----------
Principal
BONDS & NOTES Amount
(Millions)
NON-U.S. GOVERNMENT
OBLIGATIONS - 0.43%
Brazil (Federal Republic of),
Bearer 8.00% 2014 (4) $196.237 147.668
Brazil (Federal Republic of),
Front-Loaded
Interest Reduction Bond,
Series L, 8.00% 2014 (4) 9.706 7.304 .43
---------- ----------
TOTAL BONDS & NOTES
(cost: $121.298 million) 154.972 .43
---------- ----------
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (Millions) (Millions) Assets
-------------------------------- -------- -------- ------
Corporate Short-Term Notes - 8.84%
Coca-Cola Co.
5.81%-5.96% due 4/14-5/1/2000 120.500 119.978 .34
Toyota Motor Corp.
6.01%-6.02% due 5/1-5/18/2000 114.878 114.110 .32
CBA (Delaware) Finance Inc.
5.88%-5.97% due 5/10-6/9/2000 104.000 103.054 .29
British Telecommunications PLC
5.84%-5.91% due 4/13-5/17/2000 103.260 102.586 .29
France Telecom, SA
5.92%-6.04% due 5/9-5/26/2000 102.781 102.006 .28
Procter & Gamble Co.
5.80%-6.02% due 4/12-5/24/2000 101.600 101.021 .28
DaimlerChrysler NA Holdings
5.85%-6.04% due 4/13-5/19/2000 100.000 99.483 .28
Corporate Asset Funding Co. Inc.
5.85%-6.05% due 4/25-5/17/2000 97.400 96.884 .27
E.I. du Pont de Nemours and Co.
5.87%-5.97% due 5/3-5/22/2000 97.500 96.812 .27
General Electric Capital Corp.
5.91%-6.04% due 4/28-5/30/2000 96.800 96.167 .27
Spintab AB
5.90%-6.04% due 5/11-6/14/2000 94.000 92.993 .26
Rio Tinto America, Inc.
5.82%-5.90% due 4/17-4/26/2000 93.000 92.687 .26
Associates First Capital Corp.
5.85%-5.91% due 4/25-5/26/2000 91.100 90.591 .25
BMW US Capital Corp.
5.80%-5.99% due 4/11-5/16/2000 85.710 85.387 .24
Asset Securitization Corp.
5.82%-6.05% due 4/4-5/22/2000 85.000 84.472 .24
American Honda Finance Corp
. 5.75%-5.89% due 4/7-5/16/2000 80.000 79.533 .22
Eksportfinans ASA
5.82%-5.91% due 4/6-5/24/2000 75.000 74.604 .21
BellSouth Telecommunications, Inc.
5.80%-6.00% due 4/10-5/1/2000 74.400 74.125 .21
Halifax PLC
5.82%-5.90% due 4/3-5/24/2000 74.000 73.546 .21
American Express Credit Corp.
5.82%-5.94% due 4/11-4/24/2000 72.800 72.561 .20
General Motors Acceptance Corp.
5.83%-5.96% due 4/10-5/3/2000 71.000 70.767 .20
Bell Atlantic Financial Services, Inc.
5.85%-5.97% due 4/28-5/23/2000 70.000 69.595 .19
Archer Daniels Midland Co.
5.87%-6.03% due 5/2-5/25/2000 70.000 69.505 .19
International Lease Finance Corp.
5.85%-6.01% due 5/12-5/26/2000 68.500 67.957 .19
Park Avenue Receivables Corp.
5.85%-6.05% due 4/4-4/26/2000 65.500 65.363 .18
Eastman Kodak Co.
5.85%-6.09% due 5/4-6/20/2000 65.800 65.070 .18
Glaxo Wellcome PLC
5.86%-5.87% due 5/8-5/22/2000 62.700 62.235 .17
Motiva Enterprises LLC
5.81%-5.82% due 4/5-4/13/2000 60.000 59.919 .17
Motorola, Inc.
5.88%-6.01% due 5/26/2000 57.000 56.465 .16
AT&T Corp.
5.82%-5.85% due 4/6-5/4/2000 55.600 55.423 .15
USAA Capital Corp.
5.74%-5.82% due 4/5-4/12/2000 55.000 54.927 .15
FCE Bank PLC 5.85% due 4/7/2000 50.000 49.943 .14
Monsanto Co.
5.82%-6.05% due 4/7-4/11/2000 50.000 49.935 .14
Ford Motor Credit Co.
5.82% due 4/11/2000 50.000 49.911 .14
Svenska Handelsbanken, Inc.
5.90%-5.96% due 4/17-5/4/2000 50.000 49.791 .14
KfW International Finance Inc.
5.87%-5.88% due 5/9/2000 45.000 44.711 .13
Commerzbank U.S. Finance Inc.
5.90% due 5/17/2000 45.000 44.646 .12
Emerson Electric Co.
5.82%-5.87% due 4/18-5/5/2000 43.082 42.900 .12
Wal-Mart Stores, Inc.
5.83%-6.04% due 4/19-4/25/2000 37.800 37.674 .11
Marsh USA Inc. 5.90% due 5/23/2000 36.000 35.679 .10
Totalfina
5.83%-6.03% due 4/17-5/26/2000 35.000 34.836 .10
Equilon Enterprises, LLC
5.90% due 5/9/2000 33.000 32.788 .09
Den Danske Corp. Inc. 5.92% due 5/25/2000 30.000 29.724 .08
ANZ (Delaware) Inc. 5.80% due 4/7/2000 25.000 24.972 .07
Electricite De France 5.86% due 5/10/2000 25.000 24.836 .07
Reseau Ferre de France 5.90% due 5/30/2000 25.000 24.748 .07
Telstra Corp. Ltd. 5.94% due 4/17/2000 20.000 19.944 .06
Vattenfall Treasury AB 5.83% due 4/3/2000 15.000 14.993 .04
Federal Agency Discount Notes - 1.48%
Freddie Mac
5.71%-6.035% due 4/6-6/29/2000 252.600 250.120 .70
Fannie Mae
5.55%-6.05% due 4/24-6/29/2000 196.294 194.946 .54
Federal Home Loan Banks
5.55%-6.00% due 4/17-6/23/2000 88.370 87.591 .24
Certificates of Deposit - 0.42%
Australia and New Zealand Banking
Group Ltd. 5.94% due 4/18/2000 50.000 49.999 .14
Lloyds TSB Bank PLC 5.99% due 4/17/2000 50.000 49.998 .14
Societe General 6.00% due 6/2/2000 50.000 49.984 .14
Non-U.S. Currency - 0.02%
New Taiwanese Dollar NT$242.758 7.991 .02
---------- ----------
TOTAL SHORT-TERM SECURITIES
(cost: $3,853.120 million) 3,852.486 10.76
---------- ----------
TOTAL INVESTMENT SECURITIES
(cost: $21,951.317 million) 35,784.213 99.94
Excess of cash and receivables
over payables 21.897 .06
---------- ----------
NET ASSETS $35,806.110 100.00
=========== ========
(1) Non-income-producing securities.
(2) Purchased in a private placement
transaction; resale to the public
may require registration or sale
only to qualified institutional
buyers.
(3) 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
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C>
Equity Securities Appearing in the Equity Securities Eliminated from the
Portfolio Since September 30, 1999 Portfolio Since September 30, 1999
Adecco Allegheny Teledyne
American Home Products ALZA
Associates First Capital Analog Devices
Cadence Design Systems Asahi Breweries
Canadian Occidental Petroleum AT&T Liberty Media
Christian Dior Boeing
Chugai Pharmaceutical Du Pont
Clear Channel Communications Elf Aquitaine
CMG Elsevier
Coca-Cola Enterprises Georgia Gulf
Compal Electronics International Paper
Dell Computer Koninklijke Ahold
Georgia-Pacific Newbridge Networks
Heineken Nortel Networks
Hewlett-Packard RAO Gazprom
Hilton Group Seagate Technology
Hitachi Sherwin-Williams
Imperial Chemical Industries South African Breweries
Independent Newspapers Swisscom
Ito-Yokado Telstra
Lion Nathan
Mirage Resorts
Mitsubishi Heavy Industries
Nabisco Group Holdings
Newell Rubbermaid
Nichicon
Samsung Electro-Mechanics
SBC Communications
Scottish Power
Smiths Industries
Smurfit Group
Uni-President Enterprises
United Parcel Service
VersaTel Telecom International
Weyerhaeuser
Yahoo!
Yamanouchi Pharmaceutical
</TABLE>
<TABLE>
NEW PERSPECTIVE FUND
FINANCIAL STATEMENTS
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
(dollars in
at March 31, 2000 millions)
Assets:
Investment securities at market
(cost: $18,098.197) $31,931.727
Short-term securities
(cost: $3,853.120) 3,852.486
Cash 8.508
Receivables for--
Sales of investments $79.722
Sales of fund's shares 62.037
Dividends and accrued interest 69.930 211.689
---------- ----------
36,004.410
Liabilities:
Payables for--
Purchases of investments 135.078
Repurchases of fund's shares 41.152
Management services 11.608
Accrued expenses 10.462 198.300
---------- ----------
Net Assets at March 31, 2000
(authorized capital stock
-- 2,000,000,000 shares) -- $35,806.110
==========
Class A shares, $.001 par value
Net assets $35,781.383
Shares outstanding 1,139,193,380
Net asset value per share $31.41
Class B shares, $.001 par value
Net assets $24.727
Shares outstanding 787,530
Net asset value per share $31.40
STATEMENT OF OPERATIONS Unaudited
for the six months ended (dollars in
March 31, 2000 millions)
Investment Income:
Income:
Dividends $117.955
Interest 117.576 $235.531
----------
Expenses:
Management services fee 61.392
Distribution expenses - Class A 38.657
Distribution expenses - Class B .006
Transfer agent fee - Class A 13.019
Transfer agent fee - Class B .001
Reports to shareholders .594
Registration statement and prospectus 1.624
Postage, stationery and supplies 4.095
Directors' and Advisory Board fees .174
Auditing and legal fees .079
Custodian fee 3.628
Taxes other than federal income tax .382
Other expenses .236 123.887
---------- ----------
Net investment income 111.644
----------
Realized Gain and Increase
in Unrealized
Appreciation on Investments:
Net realized gain 2,240.108
Net increase in unrealized
appreciation on investments 5,654.587
----------
Net realized gain and increase in
unrealized appreciation
on investments 7,894.695
----------
Net Increase in Net Assets Resulting
from Operations $8,006.339
==========
(dollars in
STATEMENT OF CHANGES IN NET ASSETS millions)
Six months
ended Year ended
March 31, September 30,
2000* 1999
---------- ----------
Operations:
Net investment income $ 111.644 $ 242.240
Net realized gain on investments 2,240.108 2,029.050
Net increase in unrealized
appreciation on investments 5,654.587 4,591.605
---------- ----------
Net increase in net assets
resulting from operations 8,006.339 6,862.895
---------- ----------
Dividends and Distributions Paid
to Shareholders:
Dividends from net investment
income, Class A (109.900) (178.626)
Distributions from net realized gain
on investments, Class A (2,337.871) (1,352.865)
---------- ----------
Total dividends and distributions (2,447.771) (1,531.491)
---------- ----------
Capital Share Transactions:
Proceeds from shares sold 3,885.462 4,287.650
Proceeds from shares issued in
reinvestment of net investment
income dividends and
distributions of net realized
gain on investments 2,334.777 1,462.075
Cost of shares repurchased (1,724.979) (3,035.817)
---------- ----------
Net increase in net assets resulting
from capital share transactions 4,495.260 2,713.908
---------- ----------
Total Increase in Net Assets 10,053.828 8,045.312
Net Assets:
Beginning of period 25,752.282 17,706.970
---------- ----------
End of period (including
undistributed net investment
income: $110.236 and $108.492
respectively) $35,806.110 $25,752.282
========== ==========
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - New Perspective Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks long-term growth of capital through
investments all over the world, including the United States. The fund offers
Class A and Class B shares. Class A shares are sold with an initial sales
charge of up to 5.75%. Class B shares are sold with a contingent deferred
sales charge, which declines from 5% to zero depending on the length of time
the shares are held, and include a higher distribution fee than Class A shares.
Class B shares are automatically converted to Class A shares eight years after
the date of purchase. Holders of both classes of shares have equal pro rata
rights to assets and identical voting, dividend, liquidation and other rights,
except that each class bears different distribution and transfer agent
expenses, and each class shall have exclusive rights to vote on matters
affecting only that class.
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. 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, premiums, and original issue discounts
on securities purchased are amortized daily over the expected life of the
security. Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Common Expenses - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are prorated between the classes based
on the relative net assets of each class. Distribution and transfer agent fees,
and other class-specific expenses, if any, are calculated daily at the class
level based on the relative daily net assets of each class and the specific
expense rate applicable to each class.
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 six months ended March 31, 2000, such non-U.S. taxes were
$12,863,000.
CURRENCY GAINS AND LOSSES - Net realized currency gains on dividends,
interest, sales of non-U.S. bonds and notes, forward contracts, and other
receivables and payables, on a book basis, were $158,000 for the six months
ended March 31, 2000.
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 March 31, 2000, net unrealized appreciation on investments for federal
income tax purposes aggregated $13,833,884,000; $14,765,598,000 related to
appreciated securities and $931,714,000 related to depreciated securities.
During the six months ended March 31, 2000, the fund realized, on a tax basis,
a net capital gain of $2,239,950,000 on securities transactions. Net gains
related to non-U.S. currency transactions of $158,000 are treated as ordinary
income for federal income tax purposes. The cost of portfolio securities for
federal income tax purposes was $21,950,329,000 at March 31, 2000.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $61,392,000 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 in effect through December 31,
1999, provided 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. The Board of Directors approved an amended
agreement effective January 1, 2000, reducing the fees to 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; 0.385% of such assets in
excess of $17 billion but not exceeding $21 billion; 0.38% of such assets in
excess of $21 billion but not exceeding $27 billion; 0.375% of such assets in
excess of $27 billion but not exceeding $34 billion; 0.37% of such assets in
excess of $34 billion but not exceeding $44 billion; and 0.365% of such assets
in excess of $44 billion.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution for Class A shares,
the fund may expend up to 0.25% of Class A average daily 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. Pursuant to a Plan of Distribution
for Class B shares, the fund may expend up to 1.00% of Class B average daily
net assets annually to compensate dealers for their selling and servicing
efforts. During the six months ended March 31, 2000, distribution expenses
under the Plan of Distribution for Class A were limited to $38,657,000. Had no
limitation been in effect, the fund would have paid $38,860,000 for Class A.
During the six months ended March 31, 2000, distribution expenses under the
Plan of Distribution for Class B were $6,000. As of March 31, 2000, accrued and
unpaid distribution expenses for Class A and Class B shares were $7,872,000 and
$6,000, respectively.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $9,420,000 (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 $13,020,000.
DEFERRED DIRECTORS' AND ADVISORY BOARD FEES - Directors and Advisory Board
members who are unaffiliated with CRMC may elect to defer part or all of the
fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of March 31,
2000, aggregate deferred amounts and earnings thereon since the deferred
compensation plan's adoption (1993), net of any payments to members of the
Board, were $1,291,000.
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 $5,764,249,000 and $4,174,287,000, respectively,
during the six months ended March 31, 2000.
As of March 31, 2000, net assets consist of the following:
<TABLE>
<CAPTION>
<S> <C>
Capital paid in on shares of $20,085,645,000
beneficial interest
Undistributed net 110,236,000
investment income
Accumulated net realized gain 1,777,481,000
Net unrealized appreciation 13,832,748,000
Net assets $35,806,110,000
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
Six months Year ended
ended September
March 31, 2000* 30, 1999
Amount Shares Amount Shares
<S> <C> <C> <C> <C>
Class A Shares:
Sold $ 3,860.910 132,140,649 $4,287.650 174,677,528
Reinvestment of dividends
and distributions 2,334.777 85,126,121 1,462.075 66,803,759
Repurchased (1,724.958) (58,973,733) (3,035.817) (124,489,632)
Net increase in Class A 4,470.729 158,293,037 2,713.908 116,991,655
Class B Shares: (1)
Sold 24.552 788,249 - -
Reinvestment of dividends
and distributions - - - -
Repurchased (0.021) (719) - -
Net increase in Class B 24.531 787,530 - -
Total net increase in fund $ 4,495.260 159,080,567 $2,713.908 116,991,655
*Unaudited
(1) Class B shares offered for sale
commencing March 15, 2000.
</TABLE>
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 $3,628,000 includes $39,000 that was paid by these credits
rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C> <C> <C>
Net
gains
Net (losses)on
asset securities
value, Net (both Total
Period beginning invest- realized from
ended of ment and investment
(1) period income unrealized) operations
Class A:
2000 $26.25 0.11 (3) 7.50 (3) 7.61
1999 20.50 .26 7.26 7.52
1998 21.86 .27 (.11) .16
1997 17.77 .29 4.81 5.10
1996 16.98 .32 1.40 1.72
Class B (6):
2000 30.11 0.02 (3) 1.27 (3) 1.29
Dividends
(from
net Net
realized Distri- asset
Dividends non-U.S. butions value,
(from net currency (from Total end
investment gains) capital Distri- of
income) (2) gains) butions period
Class A:
(.11) - (2.34) (2.45) $31.41
(.20) - (1.57) (1.77) 26.25
(.31) - (1.21) (1.52) 20.50
(.323) (.007) (.68) (1.01) 21.86
(.321) (.009) (.60) (.93) 17.77
Class B (6):
- - - - 31.40
Ratio Ratio
Net of of
assets, expenses income
end of to to
period average average Portfolio
Total (in net net turnover
return millions) assets assets rate
Class A:
30.34% (4)(5) $35,781 0.4025% (5) 0.3627% (5) 15.43%(5)
38.43 (4) 25,752 .77 1.06 29.14
1.23 (4) 17,707 .77 1.27 29.71
29.97 (4) 16,956 .79 1.56 25.68
10.64 (4) 11,688 .82 2.00 18.12
Class B (6):
4.28 (5) 25 0.0643 (5) 0.0575 (5) 15.43(7)
(1) The periods ended 1996
through 1999 represent
fiscal years ended
September 30; the period
ended 2000 represents
the six months ended
March 31 (unaudited).
(2) Realized non-U.S.
currency gains are are
treated as ordinary income
for federal income tax
purposes.
(3) Based on average
shares outstanding.
(4) Excludes maximum
sales charge of 5.75%.
(5) Based on operations
for the period shown and,
and accordingly, not
representative of a
full year.
(6) Class B shares offered
for sale commencing
March 15, 2000.
(7) Represents portfolio
turnover rate for the six
months ended March 31,
2000.
</TABLE>
New Perspective Fund
Result of Meeting of Shareholders Held December 1, 1999 Unaudited
(adjourned session December 16, 1999)
<TABLE>
<CAPTION>
<S> <C>
Shares Outstanding on September 27, 1999 979,829,597
(record date)
Shares Present on December 1, 1999 647,744,408 (66.1%)
(proposals 1 and 5)
Shares Present on December 16, 1999 681,676,775 (69.6%)
(proposals 2, 3 and 4)
</TABLE>
Proposal 1
Election of Directors
<TABLE>
<CAPTION>
Director Percent of Percent of
Shares Votes Shares
Votes For Voting For Withheld Withheld
<S> <C> <C> <C> <C>
Elisabeth Allison 639,107,808 99% 8,636,000 1%
Michael R. Bonsignore 639,388,055 99 8,356,353 1
Gina H. Despres 639,530,216 99 8,214,192 1
Robert A. Fox 639,310,991 99 8,433,417 1
Alan Greenway 639,087,871 99 8,656,537 1
Koichi Itoh 639,469,454 99 8,274,954 1
William H. Kling 639,465,148 99 8,279,260 1
Jon B. Lovelace 639,181,835 99 8,562,572 1
John G. McDonald 639,254,966 99 8,489,442 1
William I. Miller 639,591,963 99 8,152,445 1
Kirk P. Pendleton 639,112,320 99 8,632,088 1
Donald E. Petersen 639,306,836 99 8,437,571 1
Walter P. Stern 639,173,432 99 8,570,976 1
</TABLE>
Proposal 2
Amendment to Articles of Incorporation authorizing the Board to create new
classes and series of capital stock
Proposal 3
Amendment to Articles of Incorporation reducing the par value per share of
capital stock
Proposal 4
Approval of the elimination or revision of certain of the fund's fundamental
investment policies:
a) revise and reclassify the restriction regarding purchasing securities of
other investment companies
b) revise and reclassify the restriction regarding purchasing restricted
securities
c) eliminate the restriction regarding the federal interest equalization tax
Proposal 5
Ratification of Accountants
<TABLE>
<CAPTION>
Percent of Percent of Percent of
Shares Shares Voting Shares
Votes For Voting For Votes Against Against Abstentions Abstaining
<S> <C> <C> <C> <C> <C> <C>
Proposal 2 500,512,546 92% 20,316,252 4% 22,700,587 4%
Proposal 3 623,914,042 92 28,946,832 4 28,815,901 4
Proposal 4
a 487,004,480 89 25,536,296 5 30,988,609 6
b 484,543,405 89 25,952,497 5 33,033,483 6
c 493,920,142 91 16,963,384 3 32,645,859 6
Proposal 5 629,231,695 97 5,244,460 1 13,268,253 2
</TABLE>
(Broker Non-Votes on Proposals 2 and 4 = 138,147,390)
New Perspective Fund
Offices of the fund and of the
investment adviser, Capital
Research and Management Company
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5823
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
Custodian of assets
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
Counsel
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071-2899
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
For information about your account or any of the fund's services, or for a
prospectus for any of the American Funds, 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. Please read
the prospectus carefully before you invest or send money.
This report is for the information of shareholders of New Perspective Fund, but
it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund. If used as sales material after
June 30, 2000, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
There are two ways to invest in New Perspective Fund. Class A shares are
subject to a 5.75% maximum up-front sales charge that declines for accounts of
$25,000 or more. Class B shares, which are not available for certain
employer-sponsored retirement plans, have no up-front sales charge. They are,
however, subject to additional expenses of approximately 0.75% a year over the
first eight years of ownership. If redeemed within six years, they may also be
subject to a contingent deferred sales charge (5% maximum) that declines over
time.
Printed on recycled paper
Litho in USA AGD/CG/4582
Lit. No. NPF-013-0500
[The American Funds Group(r)]
