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Previous: DREYFUS LAUREL TAX FREE MUNICIPAL FUNDS, 497, 1995-12-07 |
Next: LAKELAND FINANCIAL CORP, SC 13G/A, 1995-12-07 |
EUROPACIFIC GROWTH FUND
Semi-Annual Report
for the six months ended September 30, 1995
[The American Funds Group(R)]
EUROPACIFIC GROWTH FUND(R)
Seeks long-term capital appreciation by investing in companies based outside
the U.S. More than half of the world's investment opportunities can be found
beyond the borders of our country. As a shareholder of EuroPacific Growth Fund,
you have access to what we believe are the best of those opportunities.
A LOOK AT THE FUND'S RESULTS
(through 9/30/95 with all distributions reinvested)
6 months + 12.5%
12 months + 8.7%
Lifetime (since 4/16/84) +473.1%
Average annual compound return over the fund's lifetime + 16.5%
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are returns, with all distributions reinvested,
through September 30, 1995, assuming payment of the 5.75% maximum sales charge
at the beginning of the stated periods:
Average Annual
Total Return Compound Return
Ten Years +353.54% +16.32%
Five Years +86.25% +13.25%
One Year +2.45% --
Sales charges are lower for accounts of $50,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. FUND SHARES ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
FELLOW SHAREHOLDERS
The first half of EuroPacific Growth Fund's 1996 fiscal year was a rewarding
period, despite a less-than-robust worldwide economic environment. For the six
months ended September 30, your holdings appreciated 12.5%, assuming
reinvestment of the income dividend of 7 cents a share and a 6-cent-a-share
capital gain distribution that were paid in June.
During this period, the fund outpaced the unmanaged Morgan Stanley Capital
International EAFER (Europe, Australasia, Far East) Index, which measures all
major stock markets outside North America. That index posted a six-month
increase of 5.1% with dividends reinvested.
These latest results bring the fund's total gain since operations began
in April 1984 to 473.1% with all distributions taken in shares, or an average
compound return of 16.5% a year. During that time, the EAFE Index went
up 424.5% including reinvestment. EuroPacific's lifetime results place it first
among 13 U.S.-based international funds in existence throughout this
11 1/2-year span, according to Lipper Analytical Services. /1/
The April-to-September period was marked by sluggish economic
conditions throughout much of the fund's investment universe and by wide
fluctuations in the currency markets. After a period of considerable strength,
the yen weakened during the summer against the U.S. dollar, bringing the
relationship between the two currencies back to about where it was one year
ago. Japan's stock market, meanwhile, rose in yen terms for the six months but
declined slightly when measured in dollars.
As the table on page 3 shows, about 8% of the fund's assets are invested
in Japanese stocks. However, EuroPacific remains substantially underrepresented
in Japan relative to the size of that market as measured by the EAFE Index.
That's one reason why the fund did better than the index for the half-year.
/1/ For the five- and ten-year periods ended September 30, EuroPacific also
finished high in the Lipper rankings. For the ten years, it was in the top 15%,
ranking 3rd of 20 comparable funds; for the five years, it was in the top 17%,
ranking 9th of 55. For the 12 months ended September 30, EuroPacific was in
the top 10%, ranking 22nd of 222 comparable funds. Lipper rankings do not
reflect the effects of sales charges.
EuroPacific benefited in the first half of fiscal 1996 from strong
showings by several of its larger investments, including its three biggest
positions at the start of the period:
1) ABB Asea Brown Boveri Ltd, a power generating and engineering business
jointly owned by ASEA, a Swedish firm, and BBC Brown Boveri of Switzerland;
the fund holds the stocks of the two parent companies, which posted six-month
gains of 28.0% and 22.2%, respectively, in dollar terms;
2) Astra, a Swedish pharmaceutical manufacturer, which rose 35.5%;
3) Internationale Nederlanden, a Dutch insurance and banking organization,
which went up 20.4%.
EuroPacific focuses on the merits of individual companies rather than
emphasizing geographic regions or industries. At times, the fund's holdings
can be sizable in a country or an industry where our analysts find unusually
attractive values. This has been the case recently in Finland and Sweden, which
together represent nearly 12% of net assets versus about 3% of the EAFE Index.
These were two of the strongest markets in EuroPacific's investment universe,
showing gains of 51.8% and 36.1%, respectively, in dollars and excluding
dividends. In terms of industries, the fund currently has a fairly heavy
concentration in telecommunications and banking; between them those two
industries account for more than 16% of net assets.
Mainly, however, our policy of focusing on individual companies allows for
broad diversification. On September 30, the fund held securities representing
more than 250 companies based in over 30 countries. Just over half of its net
assets were invested in European stocks. Asia and the Pacific region accounted
for about one-fourth of net assets; investments in the Americas (including
Canada) accounted for 8%, while 15% was held in the form of cash and
equivalents.
Looking ahead, we believe the rather erratic investment climate of the
past half-year could continue for some time. We would not be surprised to see
further declines in European interest rates as well as further weakness among
Where the Fund's Assets Are Invested
(percent invested by country)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EAFE
EuroPacific Growth Fund Index*
(9/30/95) (3/31/95) (9/30/95)
ASIA/PACIFIC RIM
Japan 8.1% 6.9% 40.8%
Australia 6.9 6.6 2.7
Hong Kong 3.9 3.7 3.1
New Zealand 2.2 2.3 .4
Singapore/Malaysia 1.4 .7 3.4
Philippines 1.1 1.2 --
South Korea 1.1 .4 --
Indonesia .7 .5 --
Thailand .3 1.0 --
People's Republic of China .1 .1 --
25.8 23.4 50.4
EUROPE
United Kingdom 9.4 9.5 16.8
Sweden 9.3 6.5 2.1
Netherlands 6.5 6.4 4.0
Germany 5.1 6.1 6.8
France 5.0 5.7 6.3
Switzerland 4.5 4.5 5.7
Finland 2.6 1.8 .8
Italy 2.1 1.7 2.3
Spain 2.0 1.3 1.7
Norway 1.3 .3 .5
Belgium .9 .8 1.1
Denmark .6 .8 .8
Ireland .4 .7 .3
Austria .4 .3 .4
Luxembourg .2 .2 --
Czech Republic .1 .1 --
50.4 46.7 49.6
THE AMERICAS
Canada 3.6 3.3 --
Mexico 1.9 1.8 --
Brazil 1.6 1.2 --
Argentina .9 1.2 --
8.0 7.5 --
Other .9 1.7 --
Cash and Equivalents 14.9 20.7 --
Total 100.0% 100.0% 100.0%
</TABLE>
*Weighted by market capitalization
some European currencies and the yen. That weakness, if it materializes, should
benefit many export-oriented manufacturers, including a number of companies in
our portfolio.
Most of the industrialized countries in which EuroPacific is invested
appear to be making a renewed effort to deal with their economic problems,
chiefly high unemployment and slow growth. In due course we would expect to see
at least a moderate pickup in business activity in Europe as well as in Japan,
where government and banking officials have been wrestling with a stubborn
recession and a difficult financial crisis.
Your fund continues to grow. In July, its net assets passed the $10
billion mark for the first time. (It is interesting to note that less than five
years ago assets reached the $1 billion mark.) Our shareholder family now
includes more than 500,000 individuals as well as many corporate investors and
institutions such as foundations and university endowment funds.
For the benefit of our newer shareholders -- and because the message bears
repeating -- on the facing page we have repeated the pattern of globes and
flags that has appeared in past EuroPacific reports.
It shows that over the past quarter-century, stock markets outside the
U.S. on the whole have done much better than the U.S. market. We believe this
pattern is likely to continue over the longer term, though there are always
going to be periods when the reverse holds true, just as there will be periods
when the fund's share value goes down rather than up. Therefore, we encourage
all of our shareholders to maintain a long-term perspective on their holdings.
Cordially,
Walter P. Stern Thierry Vandeventer
Chairman of the Board President
November 15, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1970 1971 1972 1973 1974
+1% +10% +13% -19% -31%
- -14% +26% +33% -17% -26%
1975 1976 1977 1978 1979
+30% +19% -12% 0% +8%
+31% 0% +15% +29% +2%
1980 1981 1982 1983 1984
+23% -9% +15% +17% +1%
+19% -5% -5% +21% +5%
1985 1986 1987 1988 1989
+27% +13% +1% +12% +27%
+53% +67% +23% +27% +9%
1990 1991 1992 1993 1994
- -6% +27% +4% +7% -1%
- -25% +10% -14% +30% +6%
</TABLE>
Note: These figures, expressed in percentages based on U.S. dollars, are for
calendar years and do not reflect dividends.
This chart shows that stock markets outside North America have done better, as
a group, than the U.S. market in 16 of the past 25 calendar years. In each of
those 16 years, the Morgan Stanley Capital International EAFE(R) (Europe,
Australasia, Far East) Index, which reflects all major stock markets outside
North America, has gone up more or declined less than its U.S. Index. (Both
indexes are unmanaged.)
The percentages on the top lines are for the U.S.; the lower lines
represent EAFE. The figures show how the two averages fared in a particular
year. Over the entire 25-year period, the EAFE Index gained 938% with dividends
in cash, while the U.S. Index rose 331%. With dividends reinvested, the EAFE
Index gained 2,126%, while the U.S. Index rose 1,082%.
Investment Portfolio September 30, 1995 (unaudited)
EuroPacific Growth Fund
Industry Diversification
9.46% Telecommunications
7.43% Banking
4.94% Broadcasting & Publishing
4.71% Electrical & Electronic
4.30% Automobiles
53.22% Other Industries
15.94% Bonds, Cash and Equivalents
<TABLE>
<CAPTION>
Percent
of Net
Largest Individual Holdings Assets
<S> <C>
Astra 2.10%
ASEA/BBC Brown Boveri 1.79
Mannesmann 1.54
Internationale Nederlanden
Groep 1.49
Australia and New Zealand
Banking Group 1.47
Nokia 1.38
News Corp. 1.35
Svenska Handelsbanken Group 1.24
Nestle 1.21
Orkla 1.14
</TABLE>
- -------
EQUITY-TYPE SECURITIES
(common and preferred stocks and convertible debentures)
<TABLE>
<CAPTION>
Shares or Market Percent
Principal Value of Net
TELECOMMUNICATIONS- 9.46% Amount (Millions) Assets
<S> <C> <C> <C>
Telecom Corp. of New Zealand Ltd. (New Zealand) 19,091,200 74.459
Telecom Corp. of New Zealand Ltd./1/ 6,740,000 26.287 .99
Telecom Corp. of New Zealand Ltd. (American 31,800 1.964
Depositary
Receipts)
Telecomunicacoes Brasileiras SA, preferred nominative 2,123,114,288 101.265 .98
(Brazil)
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 2,550,000 80.962
Telefonos de Mexico, SA de CV, Class L 9,612,500 15.410 .93
Telecom Italia Mobile SpA (Italy)/2/ 53,760,000 89.422
Telecom Italia Mobile SpA, savings shares /2/ 4,320,000 4.767 .91
Koninklijke PTT Nederland NV (Netherlands) 2,471,900 87.360 .84
Nippon Telegraph and Telephone Corp. (Japan) 8,384 72.023 .70
Tele Danmark AS, Class B (Denmark) 1,000,000 51.701
Tele Danmark AS, Class B (American Depositary 550,000 14.231 .64
Receipts)
Philippine Long Distance Telephone Co. (American
Depositary Receipts) (Philippines) 426,250 28.292
Philippine Long Distance Telephone Co., convertible
preferred shares, Series III (Global Depositary 400,000 23.800 .58
Receipts)
Philippine Long Distance Telephone Co., convertible
preferred shares, Series II (Global Depositary 220,000 8.250
Receipts)/1/
Vodafone Group PLC (American Depositary Receipts) 1,005,000 41.205
(United Kingdom)
Vodafone Group PLC 1,148,700 4.821 .45
Telecom Italia SpA (Italy) 24,917,300 40.813
Telecom Italia SpA, savings shares 2,400,000 3.131 .42
Hong Kong Telecommunications Ltd. (Hong Kong) 21,150,000 38.440 .37
Cable and Wireless PLC (United Kingdom) 5,735,740 37.794 .37
BCE Mobile Communications Inc. (Canada)/2/ 986,500 30.511 .29
DDI Corp. (Japan) 2,400 19.770 .19
Perusahaan Perseroan (Persero) PT Indonesian
Satellite
Corp. (American Depositary Receipts) (Indonesia) 477,500 16.772 .16
Rogers Cantel Mobile Communications Inc., Class B 565,000 13.772 .13
(Canada)/2/
ECI Telecom Ltd. (Israel) 600,000 13.425 .13
STET-Societa Finanziaria Telefonica p.a.,
nonconvertible savings shares (Italy) 2,750,000 6.397
STET-Societa Finanziaria Telefonica p.a. 1,835,000 5.594 .12
Telecom Argentina STET-France Telecom SA, Class B
(American Depositary Receipts) (Argentina) 188,900 7.910
Telecom Argentina STET-France Telecom SA, Class B 590,000 2.478 .10
Telefonica de Argentina SA, Class B (American
Depositary Receipts) (Argentina) 153,200 3.658
Telefonica de Argentina SA, Class B 1,120,000 2.688 .06
Telefonica de Espana, SA (American Depositary 153,000 6.330 .06
Receipts) (Spain)
Pakistan Telecommunication Corp. (Global Depositary 25,000 2.575 .03
Receipts) (Pakistan)/1/ /2/
Thai Telephone & Telecommunication Co., Ltd. (Global
Depositary Receipts) (Thailand)/1/ /2/ 40,000 .795 .01
BANKING- 7.43%
Australia and New Zealand Banking Group Ltd. 35,431,503 151.777 1.47
(Australia)
Svenska Handelsbanken Group, Class A (Sweden) 7,438,000 128.745 1.24
Banco de Santander, SA (Spain) 1,635,800 68.655
Banco de Santander, SA (American Depositary Receipts) 308,200 12.829 .79
ABN AMRO Holding NV (Netherlands) 1,905,402 78.900 .76
Westpac Banking Corp. (Australia) 18,909,130 76.572 .74
National Australia Bank Ltd. (Australia) 4,648,076 41.156 .40
Bank of Montreal (Canada) 1,790,000 39.354 .38
Banco Popular Espanol, SA (Spain) 245,000 38.154 .37
Bangkok Bank Ltd. (Thailand) 2,004,300 22.536
Bangkok Bank Ltd., 3.25% convertible debentures 2004 $10,000,000 10.050 .31
Korea First Bank (South Korea) 2,010,000 22.269 .21
Grupo Financiero Banamex Accival, SA de CV, Class B 9,530,000 18.686
(Mexico)
Grupo Financiero Banamex Accival, SA de CV, Class L 815,900 1.523 .20
CS Holding Group, registered shares (Switzerland) 185,000 17.386 .17
Kansallis-Yhtymae (formerly Kansallis-Osake-Pankki) 9,700,000 10.174 .10
(Finland)/2/
Philippine National Bank (Philippines) 736,626 7.709 .07
Deutsche Bank AG (Germany) 144,840 6.898 .07
Safra Republic Holdings SA (Luxembourg) 68,000 5.780 .06
Shinhan Bank (South Korea) 204,473 5.204 .05
PT Bank Internasional Indonesia (Indonesia) 1,250,000 4.305 .04
MULTI-INDUSTRY- 5.56%
Orkla AS, Class A (Norway) 1,974,000 95.257
Orkla AS, Class B 500,000 22.535 1.14
Hutchison Whampoa Ltd. (Hong Kong) 17,560,000 95.177 .92
Brierley Investments Ltd. (New Zealand) 74,785,697 57.056
Brierley Investments Ltd., convertible preferred 3,866,500 2.619 .58
shares
Lend Lease Corp. Ltd. (Australia) 4,086,948 57.616 .56
Jardine Strategic Holdings Ltd. (Singapore - 12,375,000 36.135
Incorporated in Bermuda)
Jardine Strategic Holdings Ltd., 7.50% convertible $11,631,000 11.520
Eurobonds 2049
Jardine Strategic Holdings Ltd. (American Depositary 300,000 1.725 .48
Receipts)
Jardine Strategic Holdings Ltd., warrants, 1,375,000 .495
expire 1998 /2/
Groupe Bruxelles Lambert SA (Belgium) 218,000 28.973
Groupe Bruxelles Lambert SA, warrants, expire 1998 /2/ 126,900 1.276 .29
Industriforvaltnings AB Kinnevik, Class B, 10.50%
convertible debentures 1997 (Sweden) SKR66,000,000 18.374
Industriforvaltnings AB Kinnevik, Class B 303,440 9.257 .36
Industriforvaltnings AB Kinnevik, Class A 302,260 9.156
Swire Pacific Ltd., Class A (Hong Kong) 3,690,000 29.236 .28
Hanson PLC (United Kingdom) 5,063,694 16.117
Hanson PLC (American Depositary Receipts) 700,000 11.375 .27
Incentive AB, Class B (Sweden) 350,000 16.811
Incentive AB, Class A 169,900 8.112 .24
Preussag AG (Germany) 78,500 23.163 .22
Ayala Corp., Class B (Philippines) 13,104,000 12.832 .12
Investor AB, Class B, 8.00% convertible debentures SKR28,000,000 6.341 .06
2001 (Sweden)
B A T Industries PLC (United Kingdom) 534,814 4.450 .04
BROADCASTING & PUBLISHING- 4.94%
News Corp. Ltd. (American Depositary Receipts) 2,363,200 51.990
(Australia)
News Corp. Ltd. 7,926,728 44.136
News Corp. Ltd., preferred shares (American 1,181,600 23.484 1.35
Depositary
Receipts)
News Corp. Ltd., preferred shares 3,981,146 19.731
CANAL+ (France) 329,675 56.179 .54
Elsevier NV (Netherlands) 3,600,000 46.163
Reed International PLC (United Kingdom) 505,634 7.648 .52
Rogers Communications Inc., Class B (Canada)/2/ 4,668,200 46.098 .45
Carlton Communications PLC (United Kingdom) 2,601,500 42.620 .41
Pearson PLC (United Kingdom) 3,210,000 30.075 .29
Television Broadcasts Ltd. (Hong Kong) 7,317,000 29.437 .28
Wolters Kluwer NV (Netherlands) 257,579 23.668 .23
News International PLC, special dividend shares 4,491,200 22.574 .22
(United Kingdom)
NV Verenigd Bezit VNU (Netherlands) 167,000 22.146 .21
Television Francaise /1/ (France) 165,000 16.287 .16
Independent Newspapers, PLC (Ireland) 2,614,450 15.960 .15
Holdingmaatschappij De Telegraaf NV (previously
listed
as Telegraaf Holdings NV) (Netherlands) 65,000 8.904 .09
TeleWest Communications PLC (American Depositary
Receipts) (United Kingdom)/2/ 131,000 3.996 .04
ELECTRICAL & ELECTRONIC- 4.71%
ASEA AB, Class B (Sweden) 504,300 50.046
ASEA AB, Class A 400,000 40.099
ASEA AB, Class B (American Depositary Receipts) 240,000 23.970
BBC Brown Boveri Ltd, Class A (Switzerland) 61,339 71.141
BBC Brown Boveri Ltd, Class B 3,115 .699 1.79
Nokia Corp., Class K (Finland) 1,954,400 137.270
Nokia Corp., Class A 80,000 5.619 1.38
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 2,993,800 73.843
Telefonaktiebolaget LM Ericsson, Class B (American 600,000 14.700
Depositary Receipts)
Telefonaktiebolaget LM Ericsson, Class B, rights, 2,993,800 3.498 .90
expire 10/27/95 /2/
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts), rights, expire 10/26/95 /2/ 600,000 .691
Makita Corp. (Japan) 1,761,000 27.842 .27
Siemens AG (Germany) 30,000 15.148 .15
Johnson Electric Holdings Ltd. (Hong Kong - 6,916,800 13.779 .13
Incorporated in Bermuda)
Hitachi, Ltd. (Japan) 810,000 8.810 .09
AUTOMOBILES- 4.30%
Volvo AB, Class B (Sweden) 4,620,000 113.288 1.10
Bayerische Motoren Werke AG (Germany) 169,481 92.897
Bayerische Motoren Werke AG, preferred shares 43,636 16.893 1.06
Toyota Motor Corp. (Japan) 4,190,000 79.749 .77
Suzuki Motor Corp. (Japan) 5,645,000 60.827 .59
Renault SA (France) 1,208,700 35.597 .34
Peugeot SA (France) 200,000 27.338 .26
Daimler-Benz AG (Germany) 38,115 18.784 .18
INSURANCE- 4.16%
Internationale Nederlanden Groep NV (Netherlands) 2,135,492 124.093
Internationale Nederlanden Groep NV, warrants, expire 11,600,000 29.604 1.49
2001 /2/
Munchener Ruckversicherungs-Gesellschaft, registered 23,299 47.462
shares (Germany)
Munchener Ruckversicherungs-Gesellschaft 3,000 5.423 .52
Munchener Ruckversicherungs-Gesellschaft, registered 5,053 .577
shares, warrants, expire 1998 /2/
Istituto Nazionale delle Assicurazioni SpA (Italy) 34,741,000 46.953 .45
Corporacion Mapfre, CIR, SA (Spain) 697,223 36.042 .35
GIO Australia Holdings Ltd. (Australia) 14,828,589 30.472 .29
Irish Life PLC (Ireland) 7,303,778 26.047 .25
Yasuda Fire and Marine Insurance Co., Ltd. (Japan) 3,810,000 24.556 .24
CKAG Colonia Konzern AG (Germany) 28,488 23.333
CKAG Colonia Konzern AG, preferred shares 1,553 .924 .23
Baloise Holding (Switzerland) 7,600 16.721 .16
Sampo Insurance Co. Ltd., Class A (Finland) 238,100 13.936 .14
Chiyoda Fire & Marine Insurance Co., Ltd. (Japan) 750,000 4.403 .04
HEALTH & PERSONAL CARE- 4.13%
AB Astra, Class A (Sweden) 5,073,000 181.837
AB Astra, Class B 1,000,000 35.195 2.10
Sandoz Ltd. (Switzerland) 104,000 79.272 .76
Wella AG, preferred shares (Germany) 78,237 55.755 .54
Glaxo Holdings PLC (United Kingdom) 2,185,000 26.735
Glaxo Holdings PLC (American Depositary Receipts) 450,000 10.856 .36
Teva Pharmaceutical Industries Ltd. (American 800,000 28.900 .28
Depositary Receipts) (Israel)
Sankyo Co., Ltd. (Japan) 397,000 9.036 .09
UTILITIES: ELECTRIC & GAS- 3.56%
Korea Electric Power Corp. (South Korea) 1,223,300 51.090
Korea Electric Power Corp. (American Depositary 40,000 1.015 .50
Receipts)
Hongkong Electric Holdings Ltd. (Hong Kong) 14,481,500 48.425 .47
PowerGen PLC (United Kingdom) 4,800,000 42.373 .41
Centrais Eletricas Brasileiras SA, preferred 59,700,000 18.419
nominative (Brazil)
Centrais Eletricas Brasileiras SA, ordinary 49,100,000 15.149 .32
nominative
Eastern Group PLC (United Kingdom) 1,829,000 28.186 .27
National Power PLC (United Kingdom) 3,350,000 27.375 .27
China Light & Power Co., Ltd. (Hong Kong) 5,000,000 25.871 .25
Consolidated Electric Power Asia Ltd. (Hong Kong - 10,290,112 20.632
Incorporated in Bermuda)
Consolidated Electric Power Asia Ltd. (American 231,000 4.632 .24
Depositary Receipts)/1/
Hong Kong and China Gas Co. Ltd. (Hong Kong) 11,719,080 18.874 .18
Scottish Power PLC (United Kingdom) 3,000,000 16.691 .16
Huaneng Power International, Inc. Class N (American
Depositary Receipts) (People's Republic of China)/2/ 825,000 14.231 .14
CESP - Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts) (Brazil)/2/ 708,000 7.257
CESP - Companhia Energetica de Sao Paulo, ordinary 69,120,000 2.249 .10
nominative /2/
CESP - Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts)/1/ /2/ 99,084 1.016
Ceske Energeticke Zavody (Czech Republic)/2/ 245,000 10.130 .10
British Gas PLC (United Kingdom) 1,600,000 6.705 .07
Manila Electric Co., Class B (Philippines) 598,788 4.576 .04
Edison SpA (Italy) 900,000 3.448
Edison SpA, warrants, expire 12/31/95 /2/ 30,000,000 .586 .04
MACHINERY & ENGINEERING- 2.61%
Mannesmann AG (Germany) 486,012 159.566 1.54
VA Technologie AG (Austria) 240,900 27.747 .27
Atlas Copco AB, Class A (Sweden) 1,540,000 25.656 .25
GEA AG, preferred shares (Germany) 45,187 15.753
GEA AG 15,700 6.402 .21
Sandvik AB, Class B (Sweden) 900,000 18.045 .17
Mitsubishi Heavy Industries Ltd. (Japan) 1,753,000 13.417 .13
Sembawang Shipyard Ltd. (Singapore) 729,000 3.816 .04
ENERGY SOURCES- 2.44%
Royal Dutch Petroleum Co. (Netherlands) 550,000 67.636
Royal Dutch Petroleum Co. (New York Registered 115,000 14.116
Shares)
'Shell' Transport and Trading Co., PLC (New York
Registered Shares) (United Kingdom) 105,000 7.521 .86
Petrofina SA (Belgium) 165,200 51.229 .49
TOTAL, Class B (American Depositary Receipts) 785,827 23.673
(France)
TOTAL, Class B 320,347 19.389 .42
YPF SA, Class D (American Depositary 1,410,000 25.380 .25
Receipts)(Argentina)
Broken Hill Proprietary Co. Ltd. (Australia) 1,067,486 14.694 .14
Repsol SA (Spain) 250,000 7.869
Repsol SA (American Depositary Receipts) 198,500 6.302 .14
Petron Corp. (Philippines) 9,125,000 4.293
Petron Corp. (Global Depositary Receipts)/1/ 107,500 2.688 .07
NOVA Corp. of Alberta (Canada) 800,000 6.335 .06
Elf Gabon SA (Gabon) 9,400 1.335 .01
RECREATION & OTHER CONSUMER PRODUCTS- 2.39%
PolyGram NV (New York Registered Shares) 1,274,700 83.174 .81
(Netherlands)
THORN EMI PLC (United Kingdom) 3,520,435 82.005 .79
Nintendo Co., Ltd. (Japan) 1,130,000 81.934 .79
BUSINESS & PUBLIC SERVICES- 2.23%
Welsh Water PLC (United Kingdom) 2,350,000 28.763 .28
Eurotunnel SA, units, comprised of one share of
Eurotunnel SA ordinary and one share of Eurotunnel
PLC ordinary (France)/2/ 17,923,406 25.847
Eurotunnel SA, unit warrants, expire 10/31/95 /2/ 1,448,757 .003 .25
Thames Water PLC (United Kingdom) 3,039,925 25.412 .25
Reuters Holdings PLC (United Kingdom) 2,866,700 25.368 .24
Havas SA (France) 332,775 24.900 .24
Quebecor Printing Inc. (Canada) 1,500,000 24.035 .23
North West Water Group PLC (United Kingdom) 2,270,000 21.075
North West Water Group PLC, unit rights, expire 648,570 .277 .21
10/9/95 /2/
Waste Management International PLC (American
Depositary Receipts) (United Kingdom)/2/ 1,635,000 17.985 .17
Autopistas, Concesionaria Espanola, SA (Spain) 1,800,000 17.647 .17
Secom Co., Ltd. (Japan) 220,000 14.622 .14
SAP AG, preferred shares (Germany) 30,000 4.887 .05
BEVERAGES & TOBACCO- 2.16%
Coca-Cola Amatil Ltd. (Australia) 10,094,965 75.886 .73
Seagram Co. Ltd. (Canada) 1,600,000 57.400 .56
Heineken Holding NV, Class A (Netherlands) 271,874 40.474
Heineken NV 32,812 5.295 .44
Companhia Cervejaria Brahma, preferred nominative 56,333,672 22.968 .22
(Brazil)
San Miguel Corp., Class B (Philippines) 3,917,000 13.839 .13
Lion Nathan Ltd. (New Zealand) 3,400,000 7.111 .07
Panamerican Beverages, Inc., Class A (Mexico) 22,000 .591 .01
FOOD & HOUSEHOLD PRODUCTS- 2.11%
Nestle SA (Switzerland) 122,400 125.422 1.21
Reckitt & Colman PLC (United Kingdom) 6,079,100 63.225 .61
PT Indofood Sukses Makmur (Indonesia) 5,566,000 26.847 .26
Universal Robina (Philippines) 6,000,000 2.880 .03
MERCHANDISING- 2.10%
H & M Hennes & Mauritz AB, Class B (Sweden) 967,150 62.218 .60
Ito-Yokado Co., Ltd. (Japan) 634,000 34.988 .34
Tesco PLC (United Kingdom) 7,000,000 34.562 .33
WHSmith Group PLC, Class A (United Kingdom) 4,800,000 27.948 .27
Cifra, SA de CV, Class A (Mexico) 9,395,000 11.967
Cifra, SA de CV, Class C 3,945,000 4.579 .17
Cifra, SA de CV, Class B 1,076,400 1.283
Amway Japan Ltd. (American Depositary Receipts) 615,000 11.301
(Japan)
Amway Japan Ltd. 120,000 4.665 .16
Woolworths Ltd. (Australia) 5,713,502 13.381 .13
Delhaize "Le Lion" SA (Belgium) 150,000 6.349 .06
Chain Store Okuwa Co., Ltd. (Japan) 264,000 4.014 .04
INDUSTRIAL COMPONENTS- 2.10%
Compagnie Generale des Etablissements Michelin, Class 1,394,000 61.128
B (France)
Compagnie Generale des Etablissements Michelin,
convertible preferred shares 56,266 2.960 .62
Calsonic Corp. (Japan) 3,747,000 28.753 .28
Morgan Crucible Co. PLC (United Kingdom) 3,346,966 21.161 .20
MINEBEA Co., Ltd. (Japan) 2,548,000 19.245 .19
Valeo (France) 309,061 14.551 .14
Continental AG (Germany) 875,000 12.391 .12
Nikon Corp. (Japan) 950,000 12.246 .12
Bridgestone Corp. (Japan) 800,000 11.843 .11
Sumitomo Electric Industries, Ltd. (Japan) 710,000 8.651 .08
BICC PLC (United Kingdom) 1,500,000 7.148 .07
Magna International Inc., Class A (Canada) 150,600 6.796 .07
Orbital Engine Corp. Ltd. (Australia)/2/ 5,039,242 5.711
Orbital Engine Corp. Ltd. (American Depositary 43,573 .376 .06
Receipts)/2/
Autoliv AB (American Depositary Receipts) (Sweden)/1/ 70,000 4.266 .04
METALS: NONFERROUS- 1.84%
Western Mining Corp. Holdings Ltd. (Australia) 7,678,192 50.236 .48
Outokumpu Oy, Class A (Finland) 2,120,000 37.721 .36
Alusuisse-Lonza Holding Ltd., Zurich (Switzerland) 45,650 33.887 .33
Pechiney, certificats d'investissement privilegies 404,350 25.870 .25
(France)
Cominco Ltd. (Canada)/2/ 1,300,000 25.512 .25
Inco Ltd. (Canada) 260,000 8.905 .09
Teck Corp., Class B (Canada) 414,000 8.253 .08
FOREST PRODUCTS & PAPER- 1.77%
Kymmene Corp. (Finland) 1,150,000 35.540
Kymmene Corp., 8.25% convertible debentures 2043 FIM40,000,000 10.301 .44
Stora Kopparbergs Bergslags AB, Class B (Sweden) 2,300,000 31.019 .30
Kimberly-Clark de Mexico, SA de CV, Class A (Mexico) 1,400,000 19.545 .19
Fletcher Challenge Ltd. (New Zealand) 5,900,000 15.910
Fletcher Challenge Forests Division 837,128 1.118 .16
Repola Ltd. (Finland) 690,000 15.508 .15
Carter Holt Harvey Ltd. (New Zealand) 6,024,336 14.026 .13
AssiDoman AB (Sweden) 520,000 12.526 .12
MAYR-MELNHOF Karton AG (Austria) 160,000 10.178 .10
PT Indah Kiat Pulp & Paper Corp. (Indonesia) 5,657,600 6.807 .07
Sappi BVI Finance Ltd., 7.50% convertible debentures $6,000,000 6.225 .06
2002 (South Africa)/1/
Cartiere Burgo SpA (Italy) 730,000 4.948 .05
CHEMICALS- 1.25%
Ciba-Geigy Ltd. (Switzerland) 88,500 70.984 .69
L'Air Liquide (France) 124,371 19.805 .19
Akzo NV (Netherlands) 150,000 18.024 .17
Sumitomo Chemical Co., Ltd. (Japan) 2,358,000 10.282 .10
DSM NV (Netherlands) 123,306 9.903 .10
APPLIANCES & HOUSEHOLD DURABLES- 1.23%
Electrolux AB, Class B (Sweden) 925,000 44.230 .43
Sony Corp. (Japan) 747,000 38.667 .37
SANYO Electric Co., Ltd. (Japan) 3,625,000 20.662 .20
Philips Electronics NV (Netherlands) 350,000 17.076 .17
Leifheit AG (Germany) 140,000 6.468 .06
Samsung Electronics Co., Ltd. (Global Depositary 925 .111 .00
Receipts) (South Korea)/1/
LEISURE & TOURISM- 1.06%
Forte PLC (United Kingdom) 14,674,388 57.232 .55
Euro Disney SCA (France)/2/ 6,270,000 20.185
Euro Disney SCA, warrants, expire 2004 /2/ 1,100,000 .489 .20
Granada Group PLC (United Kingdom) 1,592,523 16.047 .16
Mandarin Oriental International Ltd. (Singapore - 10,420,065 10.837 .10
Incorporated in Bermuda)
Rank Organisation PLC (United Kingdom) 700,000 4.702 .05
TRANSPORTATION: AIRLINES- 0.87%
Singapore Airlines Ltd. (Singapore) 4,809,000 44.609 .43
British Airways PLC (American Depositary Receipts) 354,400 25.296
(United Kingdom)
British Airways PLC 1,056,000 7.561 .32
Cathay Pacific Airways Ltd. (Hong Kong) 8,217,400 12.490 .12
REAL ESTATE- 0.78%
Sun Hung Kai Properties Ltd. (Hong Kong) 5,250,000 42.615 .41
Hysan Development Co. Ltd. (Hong Kong) 7,550,000 18.117 .18
Mitsui Fudosan Co., Ltd. (Japan) 1,480,000 17.736 .17
C&P Homes, Inc. (Philippines)/2/ 4,005,500 2.500 .02
BUILDING MATERIALS & COMPONENTS- 0.73%
Holderbank Financiere Glaris Ltd. (Switzerland) 47,745 37.551
Holderbank Financiere Glaris Ltd., warrants, expire 238,725 .289 .37
12/20/95 /2/
CEMEX, SA, Class B (Mexico) 2,210,625 8.947
CEMEX, SA, Class A 1,039,375 3.986 .12
Tolmex, SA de CV, Class B2 (Mexico) 1,975,000 9.976 .10
Poliet (France) 100,425 8.424 .08
Sika Finanz AG, Series B (Switzerland) 24,374 6.165 .06
MISCELLANEOUS MATERIALS & COMMODITIES- 0.67%
Compagnie de Saint-Gobain (France) 317,409 38.681 .37
English China Clays PLC (United Kingdom) 2,259,300 12.976 .13
Pilkington PLC (United Kingdom) 4,000,000 12.550 .12
SGL Carbon AG (Germany) 80,500 5.213 .05
AEROSPACE & MILITARY TECHNOLOGY- 0.64%
Bombardier Inc., Class B (Canada) 4,020,000 47.187 .46
Rolls-Royce PLC (United Kingdom) 6,694,781 18.254 .18
WHOLESALE & INTERNATIONAL TRADE- 0.48%
ITOCHU Corp. (Japan) 4,067,000 25.024 .24
Finning Ltd. (Canada) 781,500 12.377 .12
Mitsubishi Corp. (Japan) 1,070,000 11.961 .11
Samsung Co., Ltd., preferred shares (Global
Depositary
Receipts) (South Korea)/1/ 71,750 .628 .01
ELECTRONIC COMPONENTS- 0.44%
Murata Manufacturing Co., Ltd. (Japan) 745,000 27.909 .27
Kyocera Corp. (Japan) 97,000 7.951 .08
Nichicon Corp. (Japan) 550,000 7.422 .07
Nihon Dempa Kogyo Co., Ltd. (Japan) 100,000 2.669 .02
TRANSPORTATION: SHIPPING- 0.41%
Nippon Yusen KK (Japan) 3,580,000 21.162 .21
Bergesen D.Y. AS, Class B (Norway) 650,000 14.493 .14
Shun Tak Holdings Ltd. (Hong Kong) 8,350,000 6.589 .06
TRANSPORTATION: RAIL & ROAD- 0.35%
TNT Ltd. (Australia)/2/ 19,550,000 29.983 .29
Nippon Konpo Unyu Soko (Japan) 775,000 6.236 .06
METALS: STEEL- 0.29%
ARBED SA (Luxembourg)/2/ 92,400 12.280 .12
Thyssen AG (Germany)/2/ 50,000 9.678 .09
Acerinox, SA (Spain) 73,810 8.432 .08
GOLD MINES- 0.18%
Ashanti Goldfields Co. Ltd. (Global Depositary 735,000 14.516
Receipts) (Ghana)
Ashanti Goldfields Co. Ltd. (Global Depositary 210,000 4.148 .18
Receipts)/1/
ELECTRONIC INSTRUMENTS- 0.17%
Scitex Corp. Ltd. (Israel) 964,500 18.205 .17
CONSTRUCTION & HOUSING- 0.16%
Sumitomo Forestry Co., Ltd. (Japan) 494,000 7.761 .07
Kinden Corp. (Japan) 336,000 5.989 .06
Higashi Nihon House Co. Ltd. (Japan) 225,000 3.331 .03
DATA PROCESSING & REPRODUCTION- 0.09%
Riso Kagaku Corp. (Japan) 70,000 5.964 .06
Olivetti SpA (Italy)/2/ 4,500,000 3.878 .03
MISCELLANEOUS- 4.26%
Other equity-type securities in initial period of 441.480 4.26
acquisition
--------- -----
TOTAL EQUITY-TYPE SECURITIES (cost: $6,946.724 8,702.171 84.06
million)
--------- -----
BONDS
Principal
Amount
(Millions)
ARGENTINEAN GOVERNMENT- 0.52%
Argentina 7.31% March 2005 /3/ $86.000 53.320 .52
NEW ZEALAND GOVERNMENT- 0.26%
New Zealand 8.00% July 1998 NZ$41.200 26.992 .26
SUPRANATIONAL- 0.10%
International Bank for Reconstruction and Development NZ$11.000 7.723 .08
12.50% July 1997
European Investment Bank 10.50% April 1998 LIT3,000.000 1.853 .02
AUSTRALIAN GOVERNMENT- 0.08%
Australia 12.50% January 1998 A$10.250 8.521 .08
ITALIAN GOVERNMENT- 0.05%
Italy 10.00% August 1998 LIT9,000.000 5.459 .05
FRENCH GOVERNMENT- 0.01%
France O.A.T. 9.50% June 1998 FF6.000 1.310 .01
--------- -----
TOTAL BONDS (cost: $89.753 million) 105.178 1.02
--------- -----
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES- 10.80%
Glaxo Wellcome plc 5.67%-5.72% due 10/23-12/12/95 $82.800 82.164 .79
AT&T Corp. 5.65%-5.69% due 10/16-11/3/95 80.000 79.717 .77
Ford Credit Europe PLC 5.67%-5.70% due 10/5-11/16/95 75.200 74.890 .72
Abbey National North America 5.66%-5.67% due 75.000 74.388 .72
11/9-12/7/95
American Express Credit Corp. 5.68%-5.73% due 68.400 68.129 .66
10/19-11/7/95
Wal-Mart Stores Inc. 5.68%-5.72% due 10/6-10/25/95 65.005 64.852 .63
Commerzbank U.S. Finance Inc. 5.67%-5.72% due 61.600 61.353 .59
10/16-11/3/95
General Electric Capital Corp. 5.64%-5.69% due 55.400 54.903 .53
11/14-12/4/95
Halifax Building Society 5.63%-5.70% due 55.000 54.736 .53
10/25-11/9/95
Commonwealth Bank of Australia 5.62%-5.70% due 55.000 54.613 .53
10/11-11/21/95
Daimler-Benz North America Corp. 5.70%-5.72% due 49.900 49.836 .48
10/4-10/20/95
PepsiCo, Inc. 5.69%-5.70% due 10/13-11/3/95 45.600 45.395 .44
Toyota Motor Credit Corp. 5.67%-5.75% due 42.800 42.728 .41
10/2-11/6/95
National Australia Funding (Delaware) Inc. 41.200 40.957 .40
5.64%-5.725% due 10/18-11/28/95
Ford Motor Credit Co. 5.70%-5.73% due 10/12-11/17/95 33.900 33.723 .33
Exxon Imperial U.S. Inc. 5.70%-5.71% due 30.400 30.329 .29
10/13-10/23/95
ABN AMRO North America Finance Inc. 5.63%-5.72% due 28.900 28.862 .28
10/4-10/11/95
Bayerische Landesbank Girozentrale 5.66%-5.72% due 27.100 27.003 .26
10/6-11/1/95
Canadian Wheat Board 5.62%-5.69% due 10/20-11/1/95 25.500 25.399 .25
Shell Oil Co. 5.72% due 10/12/95 25.000 24.953 .24
British Gas Capital Inc. 5.68% due 11/20/95 25.000 24.799 .24
Bayer Corp. 5.69%-5.73% due 10/26-10/31/95 24.750 24.632 .24
Sony Capital Corp. 5.75% due 10/13/95 21.400 21.356 .21
U.S. Borax & Chemical Corp. 5.70% due 11/28/95 16.200 16.048 .16
Arco Coal Australia Inc. 5.70% due 10/25/95 10.582 10.540 .10
CERTIFICATES OF DEPOSIT- 2.94%
Canadian Imperial Bank of Commerce 5.72%-5.78% due 85.000 84.998 .82
10/17-11/7/95
National Westminster Bank PLC 5.76% due 10/2-10/30/95 50.000 50.000 .48
Societe Generale 5.74%-5.77% due 10/3-12/5/95 50.000 49.995 .48
ABN-AMRO Bank NV 5.75%-5.78% due 10/23-11/6/95 45.000 45.002 .43
Bayerische Landesbank Girozentrale Eurocertificate 40.000 39.598 .38
5.755% due 12/1/95
Bank of Montreal 5.79% due 11/27/95 36.000 35.999 .35
FEDERAL AGENCY DISCOUNT NOTES- 0.68%
Federal Home Loan Mortgage Corp. 5.62% due 36.400 36.170 .35
11/6-11/10/95
Federal Home Loan Bank 5.63% due 10/27/95 34.295 34.153 .33
NON-U.S. GOVERNMENT SHORT-TERM NOTES- 0.21%
Alberta (Province of) 5.64%-5.65% due 10/10-12/27/95 17.000 16.850 .16
Netherlands (Government of) 6.50% due 4/15/96 NLG9.000 5.698 .05
--------- -----
TOTAL SHORT-TERM SECURITIES (cost: $1,513.584 1,514.768 14.63
million)
--------- -----
TOTAL INVESTMENT SECURITIES (cost: $8,550.061 10,322.117 99.71
million)
Excess of cash and receivables over payables 29.896 .29
--------- -----
NET ASSETS 10,352.013 100.00
========= =====
</TABLE>
/1/ Purchased in a private placement transaction; resale to the public may
require registration or may extend only to qualified institutional buyers.
/2/ Non-income-producing securities.
/3/ Coupon rate may change periodically.
See Notes to Financial Statements
EQUITY-TYPE SECURITIES APPEARING IN THE PORTFOLIO SINCE MARCH 31, 1995
ARBED
Ashanti Goldfields
Autoliv
C&P Homes
Calsonic
Chain Store Okuwa
Cominco
DDI
ECI Telecom
Korea First Bank
Nikon
Nippon Yusen
Olivetti
Petrofina
PowerGen
SAP
Sappi BVI Finance
Seagram
SGL Carbon
Siemens
Telecom Italia Mobile
TeleWest Communications
Woolworths (Australia)
EQUITY-TYPE SECURITIES ELIMINATED FROM THE PORTFOLIO SINCE MARCH 31, 1995
Aracruz Celulose
Banco Frances del Rio de la Plata
BASF
Bayer
Bayerische Vereinsbank
BCE
British Steel
Canadian Imperial Bank of Commerce
Credit local de France
Dowa Fire and Marine Insurance
Elan
Falconbridge
Hoechst
Mapfre Vida
Nichido Fire and Marine Insurance
Nippon Fire and Marine Insurance
Refuge Group
Senshukai
Sharp
Shimano
Showa Shell Sekiyu
Siderurgia Nacional
Societe Centrale Union Des Assurances de Paris
Societe Nationale Elf Aquitaine
Swiss Bank
Tenaga Nasional
Thai Farmers Bank
Tubos de Acero de Mexico
United Friendly
Volkswagen
Wacoal
EUROPACIFIC GROWTH FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 1995 (dollars in millions) (unaudited)
- ---------------------------------------------- ------------ -----------
<S> <C> <C>
ASSETS:
Investment securities at market
(cost: $8,550.061) 10,322.117
Cash .958
Receivables for-
Sales of investments $3.378
Sales of fund's shares 40.978
Open forward currency contracts 5.846
Dividends and accrued interest 31.483 81.685
------------ -----------
10,404.760
LIABILITIES:
Payables for-
Purchases of investments 31.655
Repurchases of fund's shares 14.196
Management services 4.141
Accrued expenses 2.755 52.747
------------ -----------
NET ASSETS AT SEPTEMBER 30, 1995-
Equivalent to $23.37 per share on
442,989,922 shares of beneficial
interest issued and outstanding;
unlimited shares authorized 10,352.013
===========
STATEMENT OF OPERATIONS
for the six months ended September 30, 1995 (dollars in millions) (unaudited)
- ---------------------------------------------- ------------ -----------
INVESTMENT INCOME:
Income:
Dividends $128.572
Interest 63.766 192.338
------------
Expenses:
Management services fee 23.802
Distribution expenses 11.324
Transfer agent fee 5.418
Reports to shareholders .748
Registration statement and prospectus 1.149
Postage, stationery and supplies .730
Trustees' fees .075
Auditing and legal fees .079
Custodian fee 3.139
Other expenses .024 46.488
------------ -----------
Net investment income 145.850
-----------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 45.643
Net increase in unrealized appreciation on
investments 900.037
Net unrealized appreciation on open
forward currency contracts 11.283 911.320
-------------- -----------
Net realized gain and change in unrealized
appreciation on investments 956.963
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 1,102.813
===========
- ---------------------------------------------- ------------ -----------
STATEMENT OF CHANGES IN NET ASSETS Six months ended Year ended
(dollars in millions) 9/30/95* 3/31/95
- ---------------------------------------------- ------------ -----------
OPERATIONS:
Net investment income $145.850 139.493
Net realized gain on investments 45.643 118.330
Net change in unrealized appreciation
on investments 911.320 (240.920)
------------ -----------
Net increase in net assets
resulting from operations 1,102.813 16.903
------------ -----------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (29.548) (117.777)
Distributions from net realized gain on
investments (25.327) (296.792)
------------ -----------
Total dividends and distributions (54.875) (414.569)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 79,109,634
and 182,082,807 shares, respectively 1,778.529 3,929.930
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 2,351,477 and 18,345,378 shares,
respectively 52.008 389.766
Cost of shares repurchased: 49,510,383
and 82,279,286 shares, respectively (1,114.019) (1,763.865)
------------ -----------
Net increase in net assets resulting from
capital share transactions 716.518 2,555.831
------------ -----------
TOTAL INCREASE IN NET ASSETS 1,764.456 2,158.165
NET ASSETS:
Beginning of period 8,587.557 6,429.392
----------- -----------
End of period (including undistributed
net investment income: $156.917
and $40.615, respectively) $10,352.013 8,587.557
============ ===========
</TABLE>
* Unaudited
See Notes to Financial Statements
EUROPACIFIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
1. EuroPacific Growth Fund (the "fund") is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The following paragraphs summarize the significant accounting policies
consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price. Long-term and
short-term securities with original or remaining maturities in excess of 60
days, including forward currency contracts, are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to
maturity are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by the Valuation Committee of the Board
of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities and other assets and liabilities, including forward
currency contracts, denominated in non-U.S. currencies are recorded in the
financial statements after translation into U.S. dollars utilizing rates of
exchange on the last business day of the period. Purchases and sales of
investment securities, income, and expenses are calculated using the prevailing
exchange rate as accrued. The fund does not identify the portion of each
amount shown in the fund's statement of operations under the caption "Realized
Gain and Unrealized Appreciation on Investments" that arises from changes in
non-U.S. currency exchange rates.
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 $3,139,000 includes $73,000 that was paid by these credits
rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of September 30, 1995, net unrealized appreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $1,772,056,000, of which $2,095,582,000 related to appreciated
securities and $323,526,000 related to depreciated securities. During the six
months ended September 30, 1995, the fund realized, on a tax basis, a net
capital gain of $47,547,000 on securities transactions. Net losses related to
non-U.S. currency transactions of $4,001,000 and net gains related to other tax
adjustments of $1,537,000 were treated as adjustments to ordinary income for
federal income tax purposes. The cost of portfolio securities, excluding
forward currency contracts, for book and federal income tax purposes was
$8,550,061,000 at September 30, 1995.
3. The fee of $23,802,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.69% of the first $500 million of average net assets;
0.59% of such assets in excess of $500 million but not exceeding $1.0 billion;
0.53% of such assets in excess of $1.0 billion but not exceeding $1.5 billion;
0.50% of such assets in excess of $1.5 billion but not exceeding $2.5 billion;
0.48% of such assets in excess of $2.5 billion but not exceeding $4.0 billion;
0.47% of such assets in excess of $4.0 billion but not exceeding $6.5 billion;
and 0.465% of such assets in excess of $6.5 billion.
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Trustees. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the six months ended September 30,
1995, distribution expenses under the Plan were $11,324,000. As of September
30, 1995, accrued and unpaid distribution expenses were $1,529,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $5,418,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $4,716,000 (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.
Trustees of the fund 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, 1995, aggregate amounts deferred were $99,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of September 30, 1995, accumulated undistributed net realized gain on
investments was $37,416,000 and paid-in capital was $7,935,149,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $415,058,000 and $517,390,000, respectively, during
the six months ended September 30, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended September 30, 1995, such non-U.S. taxes were $13,962,000.
Net realized currency losses on dividends, interest, withholding taxes
reclaimable, and sales of non-U.S. bonds and notes were $316,000 for the six
months ended September 30, 1995.
The fund purchases forward currency contracts in anticipation of, or to
protect itself against, fluctuations in exchange rates. The fund's use of
forward currency contracts involves, to varying degrees, elements of market
risk in excess of the amount recognized in the statement of assets and
liabilities. The contracts are recorded at market value and reflect the extent
of the fund's involvement in these financial instruments. Risks may arise upon
entering into these contracts from the potential inability of counterparties to
meet the terms of their contracts and from the possible movements in non-U.S.
exchange rates and securities values underlying these instruments. At
September 30, 1995, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
NON-U.S. CURRENCY SALE CONTRACTS
<TABLE>
<CAPTION>
Contract Amount U.S. Valuation at 9/30/95
Unrealized
Non-U.S. U.S. Amount Appreciation
<S> <C> <C> <C> <C>
Japanese Yen
expiring 1/8 to
3/11/96 Yen4,448,575,000 $51,473,114 $45,627,388 $5,845,726
</TABLE>
Per-Share Data and Ratios /1/
<TABLE>
<CAPTION>
Six months
ended Year ended March 31
9/30/95/2/ 1995 1994 1993 1992 1991
Net Asset Value, Beginning
<S> <C> <C> <C> <C> <C> <C>
of Period $20.89 $21.95 $17.64 $16.64 $15.18 $14.39
------- -------- ------- ------- ------ ------
Income From Investment
Operations:
Net investment income .33 .35 .24 .22 .28 .28
Net realized and unrealized
gain (loss) on investments 2.28 (.19) 4.37 1.04 1.48 1.02
------- -------- ------- ------- ------ ------
Total income from investment
operations 2.61 .16 4.61 1.26 1.76 1.30
------- -------- ------- ------- ------ ------
Less Distributions:
Dividends from net investment
income (.07) (.317) (.187) (.222) (.30) (.33)
Dividends from net realized
non-U.S. currency gains /3/ - (.003) (.043) (.038) - -
Distributions from net
realized gains (.06) (.90) (.07) - - (.18)
------- -------- ------- ------- ------ ------
Total distributions (.13) (1.22) (.30) (.26) (.30) (.51)
------- -------- ------- ------- ------ ------
Net Asset Value, End of Period $23.37 $20.89 $21.95 $17.64 $16.64 $15.18
======= ======== ======= ======= ====== ======
Total Return /4/ 12.53%/5/ .71% 26.27% 7.69% 11.71% 9.11%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $10,352 $8,588 $6,429 $2,992 $1,933 $1,138
Ratio of expenses to average
net assets .49%/5/ .97% .99% 1.10% 1.24% 1.28%
Ratio of net income to average
net assets 1.53%/5/ 1.80% 1.13% 1.40% 1.85% 2.23%
Portfolio turnover rate 15.85%/5/ 16.02% 21.37% 10.35% 9.65% 8.58%
</TABLE>
/1/ Adjusted to reflect the 100% share dividend effective June 10, 1993.
/2/ Unaudited
/3/ Realized non-U.S. currency gains are treated as ordinary
income for federal income tax purposes.
/4/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
/5/ Based on operations shown and, accordingly, not representative of a full
year's operations.
BOARD OF TRUSTEES
ELISABETH ALLISON, Cambridge, Massachusetts
Administrative Director, ANZI, Ltd.
(financial publishing and consulting);
former Senior Vice President, Planning and Development, McGraw-Hill, Inc.
DAVID I. FISHER, Los Angeles, California
Chairman of the Board, The Capital Group Companies, Inc.
ROBERT A. FOX, Livingston, California
President and Chief Executive Officer, Foster Farms Inc.
ALAN GREENWAY, La Jolla, California
President, Greenway Associates, Inc.
(management consulting services); former Chairman, Australian
Tourist Commission
WILLIAM R. GRIMSLEY, San Francisco, California
Senior Vice President and Director, Capital Research and Management Company
KOICHI ITOH, Tokyo, Japan
Managing Partner, VENCA Management
(venture capital)
WILLIAM H. KLING, St. Paul, Minnesota
President, Minnesota Public Radio;
President, Greenspring Co.; former President,
American Public Radio (now Public Radio International)
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
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
Chairman of the Board, Capital Group International, Inc.
THIERRY VANDEVENTER, Geneva, Switzerland
President of the fund
Chairman of the Board, Capital Research Company
OTHER OFFICERS
STEVEN E. BEPLER, New York, New York
Executive Vice President of the fund
Senior Vice President and Director, Capital Research Company
MARK E. DENNING, London, England
Vice President of the fund
Senior Vice President, Capital Research Company
JANET A. MCKINLEY, New York, New York
Vice President of the fund
Senior Vice President, Capital Research Company
Vincent P. Corti, Los Angeles, California
Secretary of the fund
Vice President - Fund Business Management Group, Capital Research and
Management Company
STEVEN N. KEARSLEY, Brea, California
Treasurer of the fund
Vice President and Treasurer, Capital Research and Management Company
MARY C. CREMIN, Brea, California
Assistant Treasurer of the fund
Senior Vice President - Fund Business Management Group, Capital Research
and Management Company
R. MARCIA GOULD, Brea, California
Assistant Treasurer of the fund
Vice President - Fund Business Management Group, Capital Research
and Management Company
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 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
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, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers
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 EuroPacific Growth 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, 1995, 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 SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
Litho in USA BDA/AL/2787
Lit. No. EUPAC-013-1195
[The American Funds Group(R)]
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