EuroPacific Growth Fund
Annual Report
for the year ended March 31, 1995
[The American Funds Group(R)]
EUROPACIFIC GROWTH FUND(R) RANKED NUMBER ONE
Over its lifetime, EuroPacific has done better than all other mutual funds
with similar objectives. With a total return of 409.3%, it ranks first among
the 13 international funds in existence from mid-April 1984, when operations
began, to March 31, 1995, according to Lipper Analytical Services. Rankings
over other periods vary - see page 2. The year-to-year record of an investment
in the fund is documented on page 5.
ABOUT OUR COVER...
The industries depicted in the illustration are among those affected by a trend
toward "privatization": the selling of shares in companies that were once 100%
government-owned. The fund holds investments in a number of these companies. An
article on privatization begins on page 7.
<TABLE>
<CAPTION>
A LOOK AT THE FUND'S RESULTS
(through 3/31/95, with all distributions reinvested)
<S> <C>
Latest year: +0.7%
Lifetime (since 4/16/84): +409.3%
Average annual compound +16.1%
return over the fund's lifetime:
</TABLE>
EUROPACIFIC GROWTH FUND...
Seeks long-term capital appreciation by investing in the securities of
companies based outside the United States. More than half of the world's
investment opportunities can be found beyond the borders of our country. As a
shareholder of the fund, you have access to what we believe are the best of
those opportunities.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Sales charges are lower for accounts of $50,000 or more.
Fund results through August 1988 do not fully reflect service and distribution
expenses now paid under its Plan of Distribution. Such expenses may not exceed
0.25% of the fund's average net assets per year and currently amount to
approximately 0.25%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
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. All investments are subject
to certain risks. For example, those which include common stocks are affected
by fluctuating stock prices. Investments outside the U.S. (especially those in
developing countries) are subject to additional risks, including currency
fluctuations, political and social instability, differing securities
regulations and accounting standards, limited public information, possible
changes in taxation, and periods of illiquidity. Accordingly, investors should
maintain a long-term perspective.
International Investing: The 25-Year Record
<TABLE>
<CAPTION>
1970 1971 1972 1973 1974
<S> <C> <C> <C> <C>
+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.
Those of you who have been with the fund for a while may recognize the above
design. It appears here, as it has in previous annual reports, to illustrate
some interesting points about investing internationally. It 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%.
FELLOW SHAREHOLDERS:
Over the past decade, EuroPacific Growth Fund has built a solid record of
success. In reporting on its achievements, we have often made the point that
the fund cannot be expected to record large gains year after year. In fiscal
1995, with all distributions reinvested, it had a positive return for the 11th
consecutive year - but just barely. For the 12 months ended March 31, the value
of your holdings edged up 0.7% assuming reinvestment of income dividends
totaling 32 cents a share and capital gain distributions of 90 cents a share.
Meanwhile, the unmanaged Morgan Stanley Capital International EAFER (Europe,
Australasia, Far East) Index, which measures all major markets outside North
America, went up 6.4% on a total return basis.
Relative to the index, the fund is currently over-represented in
interest-rate-sensitive stocks and in the securities of companies based in
developing countries; both types of investments fared poorly during the 12
months.
An investment in EuroPacific should, of course, be judged over a lengthy span
encompassing a variety of conditions in the global economy and the financial
markets. That's worth keeping in mind at a time like this, when economic and
financial crosscurrents have been buffeting markets outside North America. In
the 11 years since the fund began - a period that has witnessed a wide range of
investment conditions as well as some major changes around the globe - the
value of the fund's shares rose 409.3%, including reinvestment. During this
time, the EAFE Index went up 399.1%, also with reinvestment. (The fund results
in this letter differ from those shown in the chart on page 5, which reflect
the maximum sales charge.)
EuroPacific's lifetime gain works out to an average compound return of 16.0% a
year. This placed it first among 13 U.S.-based international funds in existence
since April 1984, according to Lipper Analytical Services. For the 10 years
ended March 31, EuroPacific also finished high in the Lipper rankings: 5th out
of 19 comparable funds; and for the five years ended March 31, it was 3rd out
of 50.
It is not unusual for your fund to finish somewhat lower in the rankings for
an individual year. In fiscal 1995 it was 43rd out of 173 international funds
in operation throughout the year. Although EuroPacific lagged the EAFE Index
and did not have a banner year, it still managed to hold its ground better than
the vast majority of its peers. (Lipper rankings do not reflect the effects of
sales charges.)
THE YEAR IN REVIEW
The past 12 months were challenging ones in the equity markets. The sharp rise
in interest rates had a dampening effect on stock prices generally and a very
negative impact on financial stocks, including EuroPacific's sizable
investments in the banking and insurance industries. We took advantage of the
price weakness and added to our holdings in those two industries; together they
account for more than 12% of the fund's net assets. In our view, the worst of
the bad news affecting our banking and insurance investments appears to be in
the past, and we believe they represent good value for the long term.
In December, Mexico's devaluation of the peso shook the financial world and
led to a steep and rapid decline in Mexican equities, including several stocks
owned by the fund. EuroPacific entered fiscal 1995 with 4.8% of its net assets
invested in Mexican securities. By March 31, that percentage was down to 1.8%.
The reduction stemmed partly from the sale of some of our Mexican holdings and
from the growth in the fund's assets; mostly, however, it reflected a drop in
the market price of the stocks remaining in the portfolio and a lower peso.
WHERE THE FUND'S ASSETS ARE INVESTED
<TABLE>
<CAPTION>
(percent invested by EuroPacific Growth EAFE
country) Fund Index*
ASIA/PACIFIC RIM (3/31/95) (3/31/94) (3/31/95)
<S> <C> <C> <C>
Japan 6.9% 9.6% 44.0%
Australia 6.6 4.8 2.5
Hong Kong 3.7 4.2 3.0
New Zealand 2.3 2.1 .4
Philippines 1.2 1.0 -
Thailand 1.0 .8 -
Singapore/Malaysia .7 .8 3.5
Indonesia .5 .3 -
South Korea .4 .4 -
People's Republic of .1 - -
China
--------- -------- --------
23.4 24.0 53.4
</TABLE>
- -----------------------------
[CAPTION]
EUROPE
[S] [C] [C] [C]
United Kingdom 9.5 9.7 16.3
Sweden 6.5 5.0 1.6
Netherlands 6.4 5.6 3.8
Germany 6.1 7.5 6.5
France 5.7 6.3 6.3
Switzerland 4.5 5.3 5.0
Finland 1.8 1.6 .5
Italy 1.7 2.0 2.1
Spain 1.3 .8 1.5
Denmark .8 - .8
Belgium .8 .4 1.1
Ireland .7 .5 .3
Austria .3 - .4
Norway .3 .1 .4
Luxembourg .2 .1 -
Czech Republic .1 .1 -
------- ------- -------
46.7 45.0 46.6
[/TABLE]
- ----------------
<TABLE>
<CAPTION>
THE AMERICAS
<S> <C> <C> <C>
Canada 3.3 3.0 -
Mexico 1.8 4.8 -
Argentina 1.2 .2 -
Brazil 1.2 2.6 -
British Virgin Islands - .2 -
Chile - .1 -
------- ------- -------
7.5 10.9 -
Other 1.7 1.5 -
Cash and Equivalents 20.7 18.6 -
------ ------ ------
TOTAL 100.0% 100.0% 100.0%
===== ===== =====
</TABLE>
*Weighted by market capitalization
Our largest Mexican investment, Telefonos de Mexico, fell 53% in fiscal 1995
after posting a gain of 8% in 1994. It is worth recalling that in 1991, when
EuroPacific was smaller, Telmex was its largest single holding; it gained 121%
and made a major contribution to the fund's positive results for that year.
The events in Mexico over the past winter reverberated through financial
markets in other Latin American nations and elsewhere. This had a depressing
effect on other EuroPacific investments, including our largest Brazilian
holding, Telebras, which fell 39% following a gain of 91% in fiscal 1994.
The peso devaluation greatly intensified the decline in the dollar and
dollar-related currencies against several European currencies and the Japanese
yen. The decline reflects skepticism about the outlook for the U.S. budget and
trade deficits as well as concern about the U.S.'s resolve to defend its
currency and the scope of the American commitment to provide Mexico with
financial support during its crisis. While these certainly are legitimate
issues, we believe that the extent of the dollar's decline has overdiscounted
them.
The impact of a strengthening of other currencies against the dollar on
EuroPacific's portfolio is complex. On the surface, it appears to work in the
fund's favor since a rise in the value of any currency translates into higher
securities prices. However, its effect on individual companies varies greatly,
depending on the nature of the firm's business, the geographic mix of its
revenues and costs, the currency mix of its assets and liabilities, and many
other factors. That is one of the reasons why investing internationally
requires in-depth research.
A BROADLY DIVERSIFIED PORTFOLIO
Of the 33 countries in which EuroPacific has investments, 22 suffered stock
market declines in local currency for the 12 months. In 11 of those 22, the
losses became gains when translated into U.S. dollars. As of March 31, just
under half of the fund's 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) and other areas accounted for a little less
than 10%, while about 20% was held in the form of cash and equivalents.
For the fiscal year as a whole, counting those securities held in the
portfolio throughout the period, the fund finished with 135 stocks on the
upside, 131 on the downside. Our strongest stocks included two Scandinavian
companies: LM Ericsson, a Swedish manufacturer of telecommunications equipment,
which rose 44.1%, and Nokia, based in Finland and also a telecommunications
equipment supplier (primarily of cellular telephones); it is one of the fund's
larger holdings and was our biggest gainer for the year, rising 103.5%. Nokia,
you may recall, was discussed in some detail in our semi-annual report six
months ago. Another large holding mentioned in that report, Eurotunnel, was
plagued by delays and start-up problems and was among our poorest performers,
finishing the fiscal year down 48.2%. We are hopeful that eventually it will
become a profitable company.
EuroPacific's investment adviser focuses on the merits of individual companies
rather than emphasizing industries or geographic regions. As a result, the
fund's portfolio tends to contain a wide range of stocks, and this helps us
avoid placing too many eggs in a single basket. At times, the single-basket
approach can produce spectacular gains; but it also can lead to extremely poor
results. It is our belief that superior long-term results can best be achieved
through a broadly diversified portfolio of carefully selected securities with
attractive potential.
Cordially,
Walter P. Stern
Chairman of the Board
Thierry Vandeventer
President
May 12, 1995
EUROPACIFIC HONORED
In its February 1995 issue, Money magazine selected EuroPacific as one of
"America's Eight Most Dependable Mutual Funds." The selection was based on
EuroPacific's investment record and consistency of management over the past ten
years.
[CHART CAPTION]
How a $10,000 Investment Has Grown
Here's how a $10,000 investment in the fund grew between April 16, 1984 - when
the fund began - and March 31, 1995. As you can see, that $10,000 investment in
EuroPacific would have increased in value to $48,007 with all distributions
reinvested.
The fund's year-by-year results appear in the table under the chart. The boxed
figure at the far right shows that over the entire 11 years an investment in
EuroPacific, made at the maximum sales charge, grew at an average compound rate
of 15.4% a year.
The top line tracks the Morgan Stanley Capital International EAFE (Europe,
Australasia, Far East) Index. The Japanese market is the largest single
component in the index but represents a comparatively small portion of the
fund's portfolio. For this reason the index outpaced the fund between 1986 and
1991, a period when Japanese stock prices were soaring.
[END CHART CAPTION]
<TABLE>
<CAPTION>
AVERAGE ANNUAL COMPOUND RETURNS
(for periods ended March 31, 1995)
<S> <C>
Ten Years +16.35%
Five Years +9.48%
One Year -5.09%
</TABLE>
Assumes reinvestment of all distributions and payment of the 5.75% maximum
sales charge at the beginning of the stated periods.
A Trend Toward Privatization
Governments all over the world have been selling shares in companies that were
once in the public sector. EuroPacific has invested in a growing number of
them.
pri-vat-ize: to alter the status of a business or industry from public to
private control or ownership.
- -Webster's Unabridged
The concept of selling shares in government-owned businesses to investors has
gathered impressive momentum in recent years. It is a reflection of the
movement away from socialism and toward capitalism that has been sweeping over
most of the world, and it has captured the attention of policymakers in
industrialized and developing countries alike. This reverses a trend toward
nationalizing privately owned assets that dates back to the end of the Second
World War.
According to the World Bank, more than 6,000 "privatizations," as they are
called, took place between 1980 and 1991, and another 6,000 or so between 1991
and 1993. Since the end of '93, some 3,000 more have been organized. The amount
of money raised through the sale of these state-owned assets is enormous: more
than $300 billion over the past ten years.
Many different types of assets and companies once owned by governments have
been privatized, including airlines, airports, banks, breweries, insurance
firms, toll roads, tourism agencies and manufacturers of chemicals,
electronics, textiles and cement. Several of the more widely publicized
privatizations have been in telecommunications, an industry that in most
countries was firmly ensconced in the public sector.
Some of these companies were profitable while they were under government
control. Others, however, were serving as instruments of policies aimed at
providing employment or achieving other objectives. Frequently they were losing
money, providing sub-par service and requiring huge taxpayer subsidies.
Transferring them to the private sector has not corrected all of their
shortcomings, but it has typically increased their efficiency; and in some
instances it has transformed what had been a sluggish, bureaucratic operation
into a well-run, customer-oriented firm with rising earnings and strong growth
potential. The sale of the assets, meanwhile, has raised cash
[Photo Caption]
Renault
Darcy Kopcho (bottom photo), who follows the automobile industry on a
worldwide basis for EuroPacific's investment adviser, checks out a new Renault
in a European showroom. The fund currently holds an investment in Renault,
which was privatized in 1994. Kopcho, who is based in Los Angeles, paid a
number of calls on Renault in the early 1990s when the company was state-owned.
Renault is one of three car makers that have been partly or wholly privatized
since the end of the Second World War; the other two are Volkswagen and Jaguar.
[End Photo Caption]
for the governments, and in many developing countries it has helped stimulate
investor interest in the local securities markets.
In some cases, the process has involved selling off an entire enterprise; in
others, governments have retained a stake in a partially privatized company.
Frequently the privatization has proceeded in stages, with an initial sale of
stock to a group of investors, followed by one or more offerings to the general
public. Especially in the industrialized countries, the process has been
accompanied by measures to deregulate an industry and create competition for
denationalized concerns that were once monopolies.
ATTRACTIVE OPPORTUNITIES FOR THE FUND
EuroPacific Growth Fund invests chiefly in companies with track records of
success as commercial entities. Privatized firms account for a relatively small
portion of the fund's portfolio. However, that portion has grown substantially
- - from 8% of net assets at the end of fiscal 1990 to 17% this past March 31. Of
the 62 privatized companies currently in the portfolio, our investments in all
but six were acquired during this five-year period; 16 of them were acquired in
fiscal 1995 (see map on page 10).
[PULLQUOTE]
The concept of selling shares in government-owned businesses to investors is a
reflection of the movement away from socialism and toward capitalism that has
been sweeping over most of the world in recent years.
[END PULLQUOTE]
[Photo Caption]
Thames Water
This photo of Tower Bridge and the Thames River graced the cover of a recent
annual report issued by Thames Water, one of ten water utilities privatized in
the United Kingdom six years ago. Thames supplies water to a large area of
southern England and builds and operates water treatment plants in the U.K. as
well as several other countries. EuroPacific began acquiring shares in the
company in 1991.
[End Photo Caption]
Some of EuroPacific's investments in these companies were made at the time of
the initial privatization. In several instances where we felt the terms of the
initial offering were unattractive, we purchased our shares later and at a
lower price. Like virtually all of the fund's holdings, our investments in
privatized companies have been made with a view to the long term, after
intensive internally generated research.
EuroPacific's adviser, Capital Research and Management Company (CRMC), and its
affiliates believe that in-depth research adds value. They maintain one of the
industry's most elaborate global intelligence networks; it is made up of more
than 180 investment professionals who travel millions of miles each year,
calling on companies that are candidates for the fund's portfolio. They meet
face-to-face with a firm's executives, suppliers and bankers as well as with
its customers and competitors. They also hold discussions with industry and
regional experts, economists and government officials. Last year alone, these
investment professionals made a total of over 9,000 research visits in more
than 50 countries.
In studying privatized companies, our associates analyze all of the elements
that we look at with other securities, such as a firm's earnings, its
management, its financial condition and the growth potential of the market for
its products or services. In addition, we consider factors specific to
privatizations such as the regulatory framework in which the company must
operate and the political atmosphere surrounding the denationalization.
Shifting government-owned enterprises to the private sector can be accompanied
by a great deal of emotionally charged debate. Its opponents often view the
sale of shares as tantamount to selling off part of a national treasure. That
is not surprising, since most of these companies have been in the public sector
for many decades. Legislative disputes can arise, along with labor protests and
court challenges that sometimes affect the company's ability to function
effectively. We try to steer clear of these problems as much as possible by
being thorough in our analysis. Occasionally, though, we may try to capitalize
on the situation if we conclude that the problems are temporary and have
depressed the price of the stock to a level where it represents good value.
One of the benefits of having built an elaborate research operation over the
past several decades is that it has enabled us to accumulate valuable
information about privatized companies long before they were privatized. In
many cases, our analysts were calling on them while they were still
government-owned. This has allowed us to become familiar with their operations
and their political and regulatory environments. It also has allowed us to
monitor the privatization process around the world since that process began
gathering steam a little over a decade ago.
A TREND THAT HAS GONE GLOBAL
The idea of transferring government-owned enterprises to the private sector
started generating serious interest among policymakers in the early
[PULLQUOTE]
Like virtually all of EuroPacific's holdings, our investments in privatized
companies have been made with a view to the long term, after intensive
internally generated research.
[END PULLQUOTE]
[CHART CAPTION]
PRIVATIZED COMPANIES ADDED TO EUROPACIFIC'S PORTFOLIO IN FISCAL 1995
This past fiscal year was a very active one for the fund with respect to
investing in privatized companies. Between April 1, 1994 and March 31, 1995,
we added to our portfolio 16 companies that were formerly 100%
government-owned. The 16 are indicated on this map, together with the countries
in which the companies are headquartered. You will find brief descriptions of
these and all other EuroPacific holdings starting on page 14.
[END CHART CAPTION]
1980s. The first major privatization outside the U.S. was the Thatcher
government's sale of British Telecom (BT), Britain's phone monopoly; 50% of BT
was marketed to investors in 1984, the remainder in the early 1990s. Since the
initial BT stock offering, there have been public offerings of many other
state-owned enterprises in the United Kingdom, including 12 regional electric
utilities and ten water companies. The sale of all these assets has raised more
than $60 billion while enhancing the efficiency of most of the denationalized
firms. EuroPacific's first investment in a privatized company was Jaguar, the
car manufacturer, in 1985. Currently, the fund holds shares in 11 U.K. firms
which at one time were entirely government-owned, including British Airways,
British Gas and British Steel.
In continental Europe, the privatization bandwagon moved forward at a slower
pace during the 1980s. Early in that decade, in fact, France took steps to
nationalize some private-sector companies. However, in recent years, France,
along with Italy, Spain, Austria, Denmark, Sweden and the Netherlands, has sold
off significant parts of its public sector operations. The Netherlands, for
example, last year sold 30% of Koninklijke PTT Nederland NV (KPN), a state-run
company providing postal as well as telephone service. KPN is one of the fund's
larger investments, as are Telecom Italia and Tele Danmark, two other
denationalized phone monopolies. European stock offerings planned for the near
future include a substantial portion of Deutsche Telekom, Germany's phone
company; that sale could turn out to be the biggest initial public offering
ever.
Privatizations also have been taking place with increasing frequency in
several Asia-Pacific countries, including Australia, New Zealand, Korea,
Taiwan, Singapore and Japan. The largest public offering in the region to date
was the sale of a portion of Nippon Telegraph and Telephone (NTT), Japan's
largest phone company, in 1987. Not long afterwards, NTT's share price and the
Japanese market in
[Photo Caption]
Singapore Airlines
Singapore Airlines (SIA) has been a EuroPacific investment since 1985, when
shares in the company were made available through a public offering. Unlike
most large air carriers, SIA is a purely international airline, providing
service to 70 destinations in 40 countries in Asia, the Mideast, Europe and
North America. Singapore Airlines has been a profitable investment: the market
value of our shares as of March 31 exceeded their acquisition cost of $19.5
million by nearly $30 million.
[End Photo Caption]
[Photo Caption]
Korea Electric
Korea Electric Power (KEPCO) supplies electric power to Seoul (shown here at
night) as well as to other cities and rural areas throughout South Korea. In
1989, 21% of KEPCO was sold to investors by the Korean government.
EuroPacific's stake was purchased in 1993.
[End Photo Caption]
general tumbled, and the denationalization process in Japan slowed
considerably; it now shows signs of regaining some of its earlier momentum. The
fund's stake in NTT was acquired during the past fiscal year, at levels well
below the initial offering price. Other privatized firms based in the
Asia-Pacific region that are large EuroPacific investments include Singapore
Airlines and Philippine Long Distance Telephone, both of which we began buying
in the mid-1980s, and Telecom New Zealand, which was added to the portfolio in
1993 after the initial offering and a subsequent decline in the price of the
stock.
Developing countries in Africa, Latin America and elsewhere have embraced the
concept of privatization as a means of attracting capital and raising living
standards. So have most parts of the old Soviet empire. In Russia, Poland,
Hungary, the Czech Republic and several other former communist bloc nations,
thousands of state-owned enterprises have been sold to investors, often through
imaginative schemes designed to create broad public ownership of shares. Most
of these stock sales have been relatively modest in size. Some have been
successful, while others have been marred by scandals or fraud.
China has taken a few steps down the path of privatization, selling minority
interests in more than two dozen government-owned enterprises. Many of these
efforts have been hampered by unattractive offering prices, restrictions on
foreign share ownership and other problems. However, the potential for
privatizations in China is great if Beijing establishes clear legal standards
for corporate ownership and moves further toward a market economy. EuroPacific
currently has one small investment in a China-based company, Huaneng Power, and
none at all in the former Soviet Union. However, we have a number of holdings
in privatized companies based in other developing countries. They include
telecommunications firms in Indonesia, Pakistan, Thailand and the Philippines,
as well as Argentina, Brazil and Mexico.
[Photo Caption]
Telecom New Zealand
After visiting the company's headquarters in Wellington - New Zealand's
capital - New York- based Stephen Bepler, a EuroPacific portfolio counselor,
examines work being completed by a Telecom New Zealand street crew. Privatized
in 1993, Telecom New Zealand is currently EuroPacific's largest single
investment in a former state-owned enterprise. It also has been a profitable
holding, with a current market value more than one and a half times acquisition
cost.
[End Photo Caption]
Privatization is a trend that is rooted in economic common sense. It is likely
to subside in some countries, while accelerating in others. As in years past,
it will lead us to some investments that turn out better than others; not every
privatized stock is going to be a moneymaker. On the whole, however, this is a
trend that should continue to present EuroPacific with an immensely varied
range of investment opportunities. We intend to keep exploring those
opportunities, using the same value-oriented, research-driven approach that has
served the fund and its shareholders well in the past.
[PULLQUOTE]
The amount of money raised through the sale of state-owned assets is enormous:
more than $300 billion over the past ten years.
[END PULLQUOTE]
Europacific Growth Fund
EUROPACIFIC GROWTH FUND
March 31, 1995
<TABLE>
<CAPTION>
PERCENT OF
<S> <C>
INDUSTRY DIVERSIFICATION NET ASSETS
Telecommunications 8.36%
Banking 7.61
Insurance 5.15
Broadcasting & Publishing 4.78
Automobiles 4.23
Other Industries 47.75
Bonds, Cash & Equivalents 22.12
LARGEST INDIVIDUAL HOLDINGS
ASEA/BBC Brown Boveri 1.72
Astra 1.61
Internationale Nederlanden Groep 1.43
News Corp. 1.40
Australia and New Zealand Banking Group 1.37
Nestle 1.18
Bayerische Motoren Werke 1.17
Telecom Corp. of New Zealand 1.16
Mannesmann 1.01
Telefonos de Mexico 1.00
</TABLE>
___________________
EuroPacific Growth Fund
Investment Portfolio March 31, 1995
<TABLE>
<CAPTION>
Shares or Market Percent
Principal Value of Net
Amount (Millions) Assets
<S> <C> <C> <C>
Equity-Type Securities (common and preferred stocks and
convertible debentures)
Telecommunications- 8.36%
Telecom Corp. of New Zealand Ltd. (New Zealand) 19,091,200 $72.167
Telecom Corp. of New Zealand Ltd./1/ 6,740,000 25.478
Telecom Corp. of New Zealand Ltd. (American Depositary
Receipts) 31,800 1.900 1.16
Telefonos de Mexico, SA de CV, Class L (Mexico) 9,612,500 13.611
Telefonos de Mexico, SA de CV, Class L (American Depositary
Receipts) 2,550,000 72.675 1.00
Telecom Italia SpA (Italy) 27,940,000 65.286
Telecom Italia SpA, savings shares 4,320,000 7.995 .85
Tele Danmark AS, Class B (Denmark) 1,000,000 52.762
Tele Danmark AS, Class B (American Depositary Receipts) 550,000 14.575 .78
Telecomunicacoes Brasileiras SA, preferred nominative (Brazil)/2/ 2,119,036,288 57.105 .66
Philippine Long Distance Telephone Co. (American Depositary
Receipts)(Philippines) 426,250 25.788
Philippine Long Distance Telephone Co., convertible preferred
shares, Series II (Global Depositary Receipts)/1/ 220,000 7.370
Philippine Long Distance Telephone Co., convertible preferred
shares, Series III (Global Depositary Receipts) 400,000 22.550 .65
Koninklijke PTT Nederland NV (Netherlands) 1,571,900 55.579 .65
Nippon Telegraph and Telephone Corp. (Japan) 4,750 40.910 .48
Vodafone Group PLC (United Kingdom) 1,148,700 3.699
Vodafone Group PLC (American Depositary Receipts) 1,005,000 33.291 .43
Cable and Wireless PLC (United Kingdom) 5,735,740 36.123 .42
BCE Inc. (Canada) 675,000 20.885 .24
Rogers Cantel Mobile Communications Inc., Class B (Canada)/2/ 565,000 14.266 .17
BCE Mobile Communications, Inc. (Canada)/2/ 399,500 13.219 .15
Pakistan Telecommunication Corp. (Global Depositary
Receipts)(Pakistan)/1/,/2/ 119,300 10.737 .13
STET-Societa Finanziaria Telefonica p.a. (Italy) 1,835,000 4.709
STET-Societa Finanziaria Telefonica p.a., nonconvertible savings
shares 2,750,000 5.560 .12
Telecom Argentina STET-France Telecom SA, Class B (Argentina) 890,000 3.872
Telecom Argentina STET-France Telecom SA, Class B (American
Depositary Receipts) 140,000 6.055 .12
Perusahaan Perseroan(Persero)PT Indonesian Satellite Corp.
(American Depositary Receipts)(Indonesia) 277,500 9.782 .11
Telefonica de Argentina SA, Class B (Argentina) 1,120,000 2.744
Telefonica de Argentina SA, Class B (American Depositary
Receipts) 153,200 3.696 .07
Telefonica de Espana, SA (American Depositary Receipts) (Spain) 153,000 5.738 .07
Thai Telephone & Telecommunication Co., Ltd. (Global Depositary
Receipts) (Thailand)/1/,/2/ 254,000 5.493 .06
Hong Kong Telecommunications Ltd. (Hong Kong) 1,600,000 3.115 .04
Banking- 7.61%
Australia and New Zealand Banking Group Ltd. (Australia) 33,279,915 117.416 1.37
Svenska Handelsbanken Group, Class A (Sweden) 6,238,000 73.296 .85
ABN AMRO Holding NV (Netherlands) 1,905,402 69.839 .81
Bangkok Bank Ltd. (Thailand) 5,850,900 51.818
Bangkok Bank Ltd., 3.25% convertible debentures 2004 $14,600,000 12.155 .74
Westpac Banking Corp. (Australia) 17,409,130 62.443 .73
National Australia Bank Ltd. (Australia) 5,465,549 46.183 .54
Banco Popular Espanol, SA (Spain) 269,000 34.764 .40
Bank of Montreal (Canada) 1,790,000 34.256 .40
Canadian Imperial Bank of Commerce (Canada) 1,150,000 27.767 .32
Credit Local de France (France) 246,000 20.564 .24
Thai Farmers Bank Public Co. Ltd. (Thailand) 1,816,800 15.352 .18
CS Holding Group (Switzerland) 25,000 10.212
CS Holding Group, registered shares 60,000 4.910 .18
Swiss Bank Corp. (Switzerland) 34,251 11.271 .13
Kansallis-Osake-Pankki (Finland)/2/ 11,350,000 10.752 .13
Banco de Santander, SA (American Depositary Receipts) (Spain) 300,000 10.650 .12
Bayerische Vereinsbank AG (Germany) 35,000 9.924 .12
Deutsche Bank AG (Germany) 14,484 6.822 .08
Philippine National Bank (Philippines) 736,626 6.181 .07
Safra Republic Holdings SA (Luxembourg) 68,000 5.406 .06
P.T. Bank Internasional Indonesia (Indonesia) 2,430,000 5.377 .06
Grupo Financiero Banamex Accival, SA de CV, Class B (Mexico) 2,100,000 2.478 .03
Banco Frances del Rio de la Plata SA (American Depositary
Receipts) (Argentina) 127,400 2.309 .03
Shinhan Bank (South Korea) 73,250 1.470 .02
Multi-Industry- 5.96%
Nokia Corp. (Finland) 508,600 74.621
Nokia Corp., preferred shares 20,000 2.911 .90
Jardine Strategic Holdings Ltd. (Incorporated in Bermuda)/2/ 11,000,000 41.800
Jardine Strategic Holdings Ltd. (American Depositary Receipts) 300,000 2.213
Jardine Strategic Holdings Ltd., 7.50% convertible
debentures 2049 $11,631,000 13.696 .67
Hutchison Whampoa Ltd. (Hong Kong) 11,500,000 50.723 .59
Lend Lease Corp. Ltd. (Australia) 4,060,426 49.500 .58
Brierley Investments Ltd. (New Zealand) 59,785,697 43.401
Brierley Investments Ltd., convertible preferred shares 3,866,500 2.503 .53
Industriforvaltning AB Kinnevik, Class A (Sweden) 302,260 9.103
Industriforvaltning AB Kinnevik, Class B 303,440 9.221
Industriforvaltning AB Kinnevik, Series 3, 10.50% convertible
debentures 1997 /2/ SKR66,000,000 17.560 .42
Hanson PLC (United Kingdom) 5,063,694 19.102
Hanson PLC (American Depositary Receipts) 700,000 13.213 .38
Groupe Bruxelles Lambert SA (Belgium) 218,000 26.701
Groupe Bruxelles Lambert SA, warrants, expire 1998 /2/ 126,900 1.048 .32
Pearson PLC (United Kingdom) 2,894,000 26.209 .31
Swire Pacific Ltd., Class A (Hong Kong) 3,690,000 25.177 .29
Preussag AG (Germany) 78,500 22.059 .26
Incentive AB, Class A (Sweden) 169,900 6.195
Incentive AB, Class B 350,000 12.668 .22
Orkla AS, Class A (Norway) 394,000 14.480 .17
Ayala Corp., Class B (Philippines) 9,360,000 11.655 .14
B A T Industries PLC (United Kingdom) 1,444,984 10.410 .12
Investor AB, Class B, 8.00% convertible debentures 2001
(Sweden) SKR28,000,000 4.840 .06
Insurance- 5.15%
Internationale Nederlanden Groep NV (Netherlands) 2,040,003 100.534
Internationale Nederlanden Groep NV, warrants, expire 2001 /2/ 11,600,000 22.536 1.43
Munchener Ruckversicherungs-Gesellschaft (Germany) 3,000 4.873
Munchener Ruckversicherungs-Gesellschaft, registered shares 36,856 66.683
Munchener Ruckversicherungs-Gesellschaft, registered shares,
warrants, expire 1998 /2/ 5,053 .520 .84
Istituto Nazionale delle Assicurazioni SpA (Italy) 32,741,000 38.724 .45
GIO Australia Holdings Ltd. (Australia) 14,828,589 27.736 .32
Yasuda Fire & Marine Insurance Co., Ltd. (Japan) 3,930,000 25.340 .30
Corporacion Mapfre, CIR, SA (Spain) 603,223 24.041
Mapfre Vida, SA de Seguros y Reaseguros (Spain) 33,490 1.420 .30
Irish Life PLC (Ireland) 7,044,910 21.729 .25
Colonia Konzern AG (Germany) 28,488 19.787
Colonia Konzern AG, preferred shares 1,553 .726 .24
United Friendly Group PLC, Class B (United Kingdom) 2,140,000 20.095 .23
Refuge Group PLC (United Kingdom) 3,200,000 16.475 .19
Baloise Holding (Switzerland) 7,200 14.324
Baloise Holding, warrants, expire 8/30/95 /2/ 7,200 .030 .17
Chiyoda Fire & Marine Insurance Co., Ltd. (Japan) 1,350,000 8.161 .10
Union Des Assurances de Paris (France) 305,800 7.662 .09
Nippon Fire and Marine Insurance Co., Ltd. (Japan) 1,000,000 7.127 .08
Sampo Insurance Co. Ltd., Class A (Finland) 173,500 6.975 .08
Nichido Fire and Marine Insurance Co., Ltd. (Japan) 400,000 3.229 .04
Dowa Fire and Marine Insurance Co., Ltd. (Japan) 600,000 3.178 .04
Broadcasting & Publishing- 4.78%
News Corp. Ltd. (Australia) 7,906,456 37.870
News Corp. Ltd., preferred shares 3,953,228 17.166
News Corp. Ltd. (American Depositary Receipts) 2,363,200 45.196
News Corp. Ltd., preferred shares (American Depositary Receipts) 1,181,600 20.383 1.40
Rogers Communications Inc., Class B (Canada)/2/ 4,855,000 63.388 .74
CANAL+ (France) 322,980 39.259 .46
Carlton Communications PLC (United Kingdom) 2,601,500 38.622 .45
Elsevier NV (Netherlands) 3,600,000 37.767 .44
Reed International PLC (United Kingdom) 505,634 6.334 .07
Television Broadcasts Ltd. (Hong Kong) 7,317,000 24.986 .29
News International PLC special dividend shares (United Kingdom) 4,491,200 20.868 .24
Wolters Kluwer NV (Netherlands) 253,846 19.513 .23
Verenigd Bezit VNU NV (Netherlands) 167,000 17.920 .21
Independent Newspapers, PLC (Ireland) 2,529,450 10.251 .12
Telegraaf Holdings NV (Netherlands) 65,000 7.450 .09
TF1 SA (France) 42,000 3.764 .04
Automobiles- 4.23%
Bayerische Motoren Werke AG (Germany) 169,481 84.556
Bayerische Motoren Werke AG, preferred shares 43,636 15.980 1.17
Daimler-Benz AG (Germany) 125,381 56.599 .66
Toyota Motor Corp. (Japan) 2,600,000 52.988 .62
Suzuki Motor Corp. (Japan) 4,350,000 46.530 .54
Volvo AB, Class B (Sweden) 2,350,000 40.466 .47
Renault V.I. SA (France) 950,900 33.117 .39
Peugeot SA (France)/2/ 200,000 28.044 .33
Volkswagen AG, preferred shares (Germany) 19,800 3.927 .05
Health & Personal Care- 4.15%
AB Astra, Class A (Sweden) 4,240,000 112.237
AB Astra, Class B 1,000,000 25.863 1.61
Sandoz Ltd. (Switzerland) 104,000 66.978 .78
Wella AG, preferred shares (Germany) 78,237 53.898 .63
Glaxo Holdings PLC (United Kingdom) 2,185,000 24.975
Glaxo Holdings PLC (American Depositary Receipts) 450,000 10.294 .41
Elan Corp., PLC (American Depositary Receipts) (Ireland)/2/ 765,000 28.496 .33
Teva Pharmaceutical Industries Ltd. (American Depositary
Receipts) (Israel) 800,000 24.100 .28
Sankyo Co., Ltd. (Japan) 397,100 9.145 .11
Business & Public Services- 3.07%
Eurotunnel SA, units, comprised of one share of
Eurotunnel SA ordinary and one share of
Eurotunnel PLC ordinary (France)/2/ 21,281,206 84.533
Eurotunnel SA, unit warrants, expire 10/31/95 /2/ 1,448,757 .072
Eurotunnel PLC, founder warrants, expire 6/30/95
(United Kingdom)/2/ 12,600 .194 .99
Welsh Water PLC (United Kingdom) 3,220,000 31.696 .37
Havas SA (France) 412,775 31.037 .36
Thames Water PLC (United Kingdom) 3,773,225 29.200 .34
Reuters Holdings PLC (United Kingdom) 2,866,700 22.022 .26
North West Water Group PLC (United Kingdom) 2,270,000 20.323 .24
Autopistas, Concesionaria Espanola, SA (Spain) 1,800,000 14.468 .17
Secom Co., Ltd. (Japan) 220,000 13.552 .15
Waste Management International PLC (American Depositary
Receipts) (United Kingdom)/2/ 1,505,000 12.416 .14
Quebecor Printing Co.(Canada) 366,200 4.421 .05
Electrical & Electronic- 2.79%
ASEA AB, Class A (Sweden) 400,000 31.279
ASEA AB, Class B 504,300 39.299
ASEA AB (American Depositary Receipts) 240,000 18.570 1.04
BBC Brown Boveri Ltd., Class A (Switzerland) 61,339 58.227
BBC Brown Boveri Ltd., Class B 3,115 .574 .68
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 748,450 46.347
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) 150,000 9.263 .65
Johnson Electric Holdings Ltd. (Hong Kong- Incorporated in
Bermuda) 6,916,800 16.283 .19
Makita Corp. (Japan) 757,000 11.157 .13
Hitachi, Ltd. (Japan) 810,000 8.394 .10
Utilities: Electric & Gas- 2.64%
Hongkong Electric Holdings Ltd. (Hong Kong) 8,869,500 28.394
Consolidated Electric Power Asia Ltd. (Hong Kong- Incorporated .33
in Bermuda) 10,290,112 21.296
Consolidated Electric Power Asia Ltd. (American Depositary
Receipts)/1/ 231,000 4.781 .30
China Light & Power Co. Ltd. (Hong Kong) 5,000,000 24.252 .28
Korea Electric Power Corp. (South Korea) 669,370 24.082 .28
Hong Kong and China Gas Co. Ltd. (Hong Kong) 10,598,400 18.918
Hong Kong and China Gas Co. Ltd., warrants, expire 12/31/95 /2/ 110,000 .017 .22
National Power PLC (United Kingdom) 2,630,000 18.182 .21
Scottish Power PLC (United Kingdom) 3,000,000 15.536 .18
Eastern Group PLC (United Kingdom) 1,629,000 14.901 .17
Ceske Energeticke Zavody (Czech Republic)/2/ 245,000 10.039 .12
Centrais Eletricas Brasileiras SA, ordinary nominative
(Brazil) 49,100,000 9.678 .11
Edison SpA (Italy) 2,378,800 9.155 .11
CESP - Companhia Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts)(Brazil)/1/,/2/ 99,084 1.115
CESP - Companhia Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts)/2/ 708,000 7.965 .11
British Gas PLC (United Kingdom) 1,600,000 7.418 .09
Huaneng Power International Inc.(American Depositary
Receipts)(People's Republic of China) /2/ 371,000 5.890 .07
Manila Electric Co., Class B (Philippines) 399,192 4.053 .05
Tenaga Nasional Bhd. (Malaysia) 170,000 .699 .01
Machinery & Engineering- 2.57%
Mannesmann AG (Germany) 338,512 87.021 1.01
Bombardier Inc., Class B (Canada) 2,010,000 38.825 .45
GEA AG (Germany) 15,700 6.034
GEA AG, preferred shares 45,187 14.746 .24
VA Technologie AG (Austria) 191,600 19.344 .23
Atlas Copco AB, Class A (Sweden) 1,540,000 18.511 .22
Sandvik AB, Class B (Sweden) 900,000 14.221 .17
Sembawang Shipyard Ltd. (Singapore) 1,700,000 11.803 .14
Mitsubishi Heavy Industries, Ltd. (Japan) 1,340,000 9.612 .11
Food & Household Products- 2.02%
Nestle SA (Switzerland) 104,150 101.531 1.18
Reckitt & Colman PLC (United Kingdom) 5,229,100 52.235 .61
Indofood Sukses (Indonesia) 5,016,000 17.266 .20
Universal Robina (Philippines)/2/ 5,000,000 2.826 .03
Energy Sources- 1.97%
Royal Dutch Petroleum Co. (Netherlands) 400,000 47.869
Royal Dutch Petroleum Co. (New York Registered Shares) 70,000 8.400 .65
'Shell' Transport and Trading Co., PLC (New York Registered
Shares)(United Kingdom) 55,000 3.898 .05
TOTAL, Class B (France) 263,870 15.698
TOTAL (American Depositary Receipts) 766,999 23.010 .45
YPF SA, Class D (American Depositary Receipts)(Argentina) 1,210,000 22.990 .27
NOVA Corp. of Alberta (Canada) 1,510,000 13.368 .16
Broken Hill Proprietary Co. Ltd. (Australia) 731,956 9.589 .11
Repsol SA (Spain) 250,000 7.072 .08
Societe Nationale Elf Aquitaine (American Depositary Receipts)
(France) 135,000 5.231 .06
Petron Corp.(Global Depositary Receipts)(Philippines)/1/ 123,600 4.079 .05
Showa Shell Sekiyu K.K. (Japan) 360,000 4.021 .05
Elf Gabon SA (Gabon) 18,825 3.749 .04
Industrial Components- 1.94%
Compagnie Generale des Etablissements Michelin, Class B
(France)/2/ 1,394,000 59.825
Compagnie Generale des Etablissements Michelin, convertible
preferred shares 56,266 3.017 .73
Morgan Crucible Co. PLC (United Kingdom) 3,276,400 16.868 .20
Valeo (France) 306,758 16.512 .19
Minebea Co., Ltd. (Japan) 2,548,000 16.136 .19
Continental AG (Germany) 87,500 12.627 .15
Bridgestone Corp. (Japan) 800,000 11.883 .14
Sumitomo Electric Industries, Ltd. (Japan) 710,000 9.156 .11
BICC PLC (United Kingdom) 1,500,000 8.160 .10
Magna International Inc., Class A (Canada) 150,600 5.742 .07
Orbital Engine Corp. Ltd. (Australia)/2/ 5,039,242 4.916
Orbital Engine Corp. Ltd. (American Depositary Receipts)/2/ 43,573 .343 .06
Recreation & Other Consumer Products- 1.85%
PolyGram NV (New York Registered Shares) (Netherlands) 1,274,700 69.949 .81
THORN EMI PLC (United Kingdom) 3,455,000 61.153 .71
Nintendo Co., Ltd. (Japan) 412,000 24.431 .28
Shimano Inc. (Japan) 228,000 4.358 .05
Merchandising- 1.67%
WHSmith Group PLC, Class A (United Kingdom) 4,800,000 31.920 .37
Ito-Yokado Co., Ltd. (Japan) 634,000 31.390 .37
Tesco PLC (United Kingdom) 6,740,000 29.026 .34
Cifra, SA de CV, Class A (Mexico) 9,395,000 11.778
Cifra, SA de CV, Class B 1,076,400 1.346
Cifra, SA de CV, Class C 3,945,000 4.795 .21
Amway Japan Ltd. (Japan) 120,000 3.800
Amway Japan Ltd. (American Depositary Receipts) 615,000 9.071 .15
H & M Hennes & Mauritz AB, Class B (Sweden) 175,000 10.541 .12
DELHAIZE 'LE LION' SA (Belgium) 150,000 6.046 .07
Senshukai Co., Ltd. (Japan) 187,000 3.703 .04
Chemicals- 1.66%
Ciba-Geigy Ltd. (Switzerland) 88,500 58.792 .68
Akzo NV (Netherlands) 250,000 27.279 .32
Sumitomo Chemical Co., Ltd. (Japan) 2,358,000 12.489 .15
L'Air Liquide (France) 73,822 12.097 .14
Bayer AG (Germany) 40,000 9.798 .11
DSM NV (Netherlands) 123,306 9.462 .11
BASF AG (Germany) 35,000 7.051 .08
Hoechst AG (Germany) 30,000 6.200 .07
Forest Products & Paper- 1.60%
Kymmene Corp. (Finland) 1,150,000 29.760 .35
Fletcher Challenge Ltd. (New Zealand) 5,900,000 13.968
Fletcher Challenge Forests Division (American Depositary
Receipts) 123,500 1.683 .18
Carter Holt Harvey Ltd. (New Zealand) 6,024,336 13.396 .16
P.T. Indah Kiat Pulp & Paper Corp. (Indonesia) 9,345,000 12.637 .15
Kimberly-Clark de Mexico, SA de CV, Class A (Mexico) 1,400,000 11.543 .13
Repola Ltd. (Finland) 690,000 11.463 .13
AssiDoman AB (Sweden) 520,000 11.131 .13
Stora Kopparbergs Bergslags AB, Class B (Sweden) 170,000 10.102 .12
Mayr-Melnhof Karton AG (Austria) 160,000 9.742 .11
Aracruz Celulose SA (American Depositary Receipts) (Brazil) 592,500 7.110 .08
Cartiere Burgo SpA (Italy)/2/ 730,000 5.008 .06
Beverages & Tobacco- 1.39%
Coca-Cola Amatil Ltd. (Australia) 8,008,347 48.755 .57
Heineken NV (Netherlands) 26,250 4.445
Heineken Holding NV, Class A 217,500 33.804 .45
Companhia Cervejaria Brahma, preferred nominative (Brazil) 55,317,000 13.245 .15
San Miguel Corp., Class B (Philippines) 2,440,000 10.938 .13
Lion Nathan Ltd. (New Zealand) 3,400,000 6.760 .08
Panamerican Beverages, Inc. (Mexico) 22,000 .575 .01
Appliances & Household Durables- 1.21%
Electrolux AB, Class B (Sweden) 850,000 38.400 .45
Sony Corp. (Japan) 474,000 23.741 .28
SANYO Electric Co., Ltd. (Japan) 2,590,000 14.911 .17
Philips Electronics NV (Netherlands) 350,000 11.877 .14
Sharp Corp. (Japan) 500,000 8.117 .09
Leifheit AG (Germany) 14,000 6.447 .08
Samsung Electronics Co., Ltd. (South Korea)/2/ 7 .001 .00
Samsung Electronics Co., Ltd. (Global Depositary Receipts)/1/ 187 .013
Samsung Electronics Co., Ltd., preferred shares
(Global Depositary Receipts)/1/ 600 .026
Transportation: Airlines- 1.20%
Singapore Airlines Ltd. (Singapore) 4,809,000 48.039 .56
British Airways PLC (United Kingdom) 1,056,000 6.969
British Airways PLC (American Depositary Receipts) 354,400 23.302 .35
Cathay Pacific Airways Ltd. (Hong Kong) 16,142,000 24.950 .29
Metals: Nonferrous- 1.16%
Alusuisse-Lonza Holding Ltd, Zurich (Switzerland) 45,650 24.728 .29
Pechiney, certificats d'investissement privilegies (France) 339,000 22.642 .26
Outokumpu Oy, Class A (Finland) 1,520,000 22.582 .26
Western Mining Corp. Holdings Ltd. (Australia) 2,323,892 11.693 .14
Teck Corp., Class B (Canada) 414,000 6.997 .08
Falconbridge Ltd. (Canada) 381,000 6.405 .07
Inco Ltd.(Canada) 200,000 5.575 .06
Leisure & Tourism- 1.07%
Forte PLC (United Kingdom) 14,674,388 54.049 .63
Euro Disney SA (France)2 6,270,000 16.777 .20
Euro Disney SA, warrants, expire 2004 /2/ 1,100,000 .342
Mandarin Oriental International Ltd. (Hong Kong - Incorporated
in Bermuda) 10,420,065 13.882 .17
Rank Organisation PLC (United Kingdom) 700,000 4.556 .05
Granada Group PLC (United Kingdom) 192,523 1.745 .02
Real Estate- 0.76%
Sun Hung Kai Properties Ltd. (Hong Kong) 5,250,000 35.821 .42
Hysan Development Co. Ltd. (Hong Kong) 7,550,000 16.797 .21
Mitsui Fudosan Co., Ltd. (Japan) 975,000 10.755 .13
Miscellaneous Materials & Commodities- 0.72%
Compagnie de Saint-Gobain (France) 309,944 38.446 .45
English China Clays PLC (United Kingdom) 2,259,300 13.141 .15
Pilkington PLC (United Kingdom) 4,000,000 10.491 .12
Building Materials & Components- 0.68%
Holderbank Financiere Glaris Ltd. (Switzerland) 41,615 30.399 .35
Poliet (France) 118,400 10.413 .12
Sika Finanz AG, Series B (Switzerland) 24,374 7.096 .08
CEMEX, SA, Class A (Mexico) 1,039,375 2.146
CEMEX, SA, Class B 2,210,625 4.858 .08
Tolmex, SA de CV, Class B2 (Mexico) 2,045,000 4.645 .05
Metals: Steel- 0.65%
Thyssen AG (Germany)/2/ 150,000 27.302 .32
Acerinox, SA (Spain) 133,100 12.796 .15
British Steel PLC (United Kingdom) 2,912,000 7.584 .09
Siderurgia Nacional SA, ordinary nominative (Brazil)/2/ 194,000,000 4.535 .05
Tubos de Acero de Mexico, SA (American Depositary Receipts)
(Mexico)/2/ 1,063,000 3.721 .04
Wholesale & International Trade- 0.58%
ITOCHU Corp. (Japan) 4,067,000 24.819 .29
Mitsubishi Corp. (Japan) 1,070,000 12.936 .15
Finning Ltd. (Canada) 781,500 10.902 .13
Samsung Co., Ltd., preferred shares (Global Depositary
Receipts)(South Korea)/1/ 71,750 .628 .01
Transportation: Rail & Road- 0.38%
TNT Ltd. (Australia)/2/ 19,550,000 25.668 .30
Nippon Konpo Unyu Soko (Japan) 775,000 7.237 .08
Electronic Components- 0.38%
Murata Manufacturing Co., Ltd. (Japan) 434,000 16.840 .20
Kyocera Corp. (Japan) 97,000 7.215 .08
Nichicon Corp. (Japan) 390,000 5.972 .07
Nihon Dempa Kogyo Co., Ltd. (Japan) 100,000 2.798 .03
Construction & Housing- 0.27%
Sumitomo Forestry Co., Ltd. (Japan) 494,000 8.532 .10
Higashi Nihon House Co., Ltd. (Japan) 454,000 7.893 .09
Kinden Corp. (Japan) 336,600 6.899 .08
Transportation: Shipping- 0.21%
Bergesen D.Y. AS, Class B (Norway) 546,600 12.080 .14
Shun Tak Holdings Ltd. (Hong Kong) 9,832,529 5.818 .07
Electronic Instruments- 0.20%
Scitex Corp. Ltd. (Israel) 964,500 17.240 .20
Aerospace & Military Technology- 0.17%
Rolls-Royce PLC (United Kingdom) 5,562,500 14.589 .17
Textiles & Apparel- 0.10%
Wacoal Corp. (Japan) 778,000 8.958 .10
Data Processing & Reproduction- 0.05%
Riso Kagaku Corp. (Japan) 70,000 4.997 .05
Miscellaneous- 2.69%
Other equity-type securities in initial period of acquisition 231.659 2.69
----------- --------
---
TOTAL EQUITY-TYPE SECURITIES (cost: $5,823.184 million) 6,687.958 77.88
----------- --------
---
Principal
Amount
(Millions)
Bonds
Argentinian Government- 0.76%
Argentina 6.50% March 2005 $86.000 46.333 .54
Argentina 4.25% March 2023 46.250 18.905 .22
New Zealand Government- 0.21%
New Zealand 8.00% July 1998 NZ$28.500 18.509 .21
Australian Government- 0.18%
Australia 12.50% January 1998 A$10.000 7.918 .09
Australia 12.00% July 1999 10.000 7.983 .09
Supranational- 0.11%
International Bank for Reconstruction &
Development 12.50% July 1997 NZ$11.000 7.777 .09
European Investment Bank 10.50% April 1998 LIT3,000.000 1.728 .02
Netherlands Government- 0.07%
Netherlands 6.50% April 1996 NLG9.000 5.892 .07
Italian Government- 0.06%
Italy 10.00% August 1998 LIT9,000.000 4.940 .06
French Government- 0.02%
France O.A.T. 9.50% June 1998 FF6.000 1.317 .02
----------- --------
---
TOTAL BONDS (cost: $114.590 million) 121.302 1.41
----------- --------
---
SHORT-TERM SECURITIES
Corporate Short-Term Notes- 14.46%
Smithkline Beecham Corp. 5.975%-5.98% due 4/28-5/12/95 $82.100 81.641 .95
Halifax Building Society 5.97%-6.02% due 4/18-5/10/95 77.700 77.318 .90
Daimler-Benz North America Corp. 5.96%-6.05% due 4/3-4/21/95 65.900 65.743 .77
Miles Inc. 5.97%-6.00% due 5/4-5/23/95 65.000 64.522 .75
Deutsche Bank Financial Inc. 5.95%-5.98% due 4/10-4/24/95 61.400 61.218 .71
National Australia Funding (Delaware) Inc. 5.98%-6.00% due
4/7-5/30/95 60.600 60.435 .71
Canada Bills 6.00%-6.03% due 4/26-5/16/95 56.300 55.954 .65
Exxon Imperial U.S. Inc. 6.00% due 4/11-4/18/95 50.165 50.044 .58
PepsiCo, Inc. 5.97% due 4/21/95 50.000 49.826 .58
ABN-AMRO North America Finance Inc. 5.98% due 5/1/95 50.000 49.743 .58
Siemens Corp. 5.95%-6.10% due 4/13-5/11/95 49.890 49.693 .58
American Express Credit Corp. 6.05% due 5/9/95 50.000 49.671 .58
Ford Motor Credit Co. 6.04% due 5/15/95 45.000 44.659 .52
Barclays Bank of Canada 6.03% due 4/6/95 42.500 42.457 .50
RTZ America Inc. 6.07% due 5/11-5/16/95 42.000 41.696 .49
Bayerische Vereinsbank AG 5.96% due 4/24/95 40.000 39.841 .46
General Electric Capital Corp. 6.00% due 5/1/95 38.600 38.399 .45
Banque Nationale de Paris (Canada) 6.05% due 5/1/95 33.000 32.828 .39
UBS Finance (Delaware) Inc. 6.00% due 4/4/95 30.000 29.980 .35
Bayerische Landesbank Girozentrale 5.95% due 4/12/95 30.000 29.941 .35
Toyota Motor Credit Corp. 5.94%-6.02% due 4/3-5/30/95 30.000 29.876 .35
Ford Credit Europe PLC 6.02%-6.05% due 5/2-5/19/95 26.000 25.832 .30
Canadian Imperial Holdings Inc. 5.97% due 4/20/95 25.000 24.918 .29
Caisse Nationale des Telecommunications 5.99%-6.00% due
5/2-5/26/95 21.485 21.350 .25
Electricite de France 5.97% due 4/28/95 20.000 19.907 .23
Toronto-Dominion Holdings USA Inc. 6.02% due 6/1/95 20.000 19.790 .23
MCA Funding Corp. 6.00% due 4/27/95 18.300 18.218 .21
Nestle Capital Corp. 5.94%-5.95% due 4/4-5/1/95 17.200 17.144 .20
British Gas Capital Inc. 5.98% due 4/10/95 15.000 14.975 .17
Canadian Wheat Board 5.97%-6.02% due 4/4-6/6/95 13.100 13.059 .15
Commonwealth Bank of Australia 6.01% due 4/6/95 10.000 9.990 .12
Arco Coal Australia Inc. 5.99% due 5/3/95 9.894 9.839 .11
Certificates of Deposit- 3.74%
Societe Generale 6.05%-6.10% due 4/5-5/18/95 75.000 75.000 .87
Commerzbank AG 6.12%-6.14% due 4/3-5/15/95 60.000 60.001 .70
National Westminster Bank PLC 6.11%-6.22% due 5/5-5/17/95 55.000 55.001 .64
Banque Nationale de Paris 6.08%-6.17% due 5/2-5/8/95 40.000 40.001 .47
Bayerische Hypotheken-und Wechsel-Bank AG 6.08%-6.11% due
4/7-5/9/95 26.000 26.000 .30
Abbey National PLC 6.18% due 5/15/95 25.000 25.003 .29
Bank of Montreal 6.065% due 4/17/95 21.000 21.000 .24
Canadian Imperial Bank of Commerce 6.05% due 5/3/95 20.000 19.999 .23
Federal Agency Discount Notes- 2.27%
Federal Home Loan Mortgage Corp. 5.93%-6.00% due 4/4-5/2/95 130.345 129.956 1.51
Federal Home Loan Bank 5.94%-5.97% due 4/10-5/8/95 55.700 55.489 .65
Federal National Mortgage Assn. 5.98% due 5/8/95 9.700 9.639 .11
Bankers' Acceptances- 0.11%
Societe Generale 6.04% due 4/12/95 9.500 9.480 .11
----------- --------
---
TOTAL SHORT-TERM SECURITIES (cost: $1,767.084 million) 1,767.076 20.58
----------- --------
---
TOTAL INVESTMENT SECURITIES (cost: $7,704.858 million) 8,576.336 99.87
Excess of cash and receivables over payables 11.221 .13
----------- --------
---
NET ASSETS $8,587.557 $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
The descriptions of the companies shown in the portfolio, which
were obtained from published reports and other sources believed
to be reliable, are supplemental and are not covered by the
Report of Independent Accountants.
See Notes to Financial Statements
EQUITY-TYPE SECURITIES APPEARING IN THE PORTFOLIO SINCE SEPTEMBER 30, 1994
- --------------------------------------------------------------------------
Banco Popular Espanol
BCE
Bergesen
Granada Group
Hennes & Mauritz
Huaneng Power International
Inco
Indosat
Mapfre Vida
Nintendo
Nippon Telephone & Telegraph
Orkla
Panamerican Beverage
Pechiney
Rank Organisation
Scottish Power
Shell Transport & Trading
Shinhan Bank
Tenega Nasional
Thai Farmers Bank
Volvo
EQUITY-TYPE SECURITIES ELIMINATED FROM THE PORTFOLIO SINCE SEPTEMBER 30, 1994
- -----------------------------------------------------------------------------
Alcatel Alsthom
Aoyama Trading
Banco Bradesco
Camas
Chudenko
Commonwealth Bank of Austrailia
Compagnie Generale des Eaux
Global Mark International
Grupo Embotellador de Mexico
Grupo Financiero Bancomer
Izumi
Japan Airport Terminal
Kia Motors
Kingfisher
Komatsu
Lex Service
Marui
Matsushita Electric Works
Matsushita-Kotobuki Electronics Industries
Nissan Motors
Quebecor Printing
Sekisui House
Siebe
Siemens
Takuma
Toray Industries
TOSTEM
Union Bank of Switzerland
Willis Corroon Group
Woodside Petroleum
Yizheng Chemical Fibre
Yokogawa Electric
EuroPacific Growth Fund
Financial Statements
<TABLE>
<CAPTION>
- ---------------------------------------------- --------------- --------------
Statement of Assets and Liabilities (dollars in
at March 31, 1995 millions)
- ---------------------------------------------- ---------------- -------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $7,704.858) $8,576.336
Cash 4.377
Receivables for-
Sales of investments $64.226
Sales of fund's shares 31.361
Dividends and accrued interest 24.510 120.097
------------------- -----------------
8,700.810
Liabilities:
Payables for-
Purchases of investments 83.875
Repurchases of fund's shares 18.222
Open forward currency contracts 5.437
Management services 3.557
Accrued expenses 2.162 113.253
------------------- -----------------
Net Assets at March 31, 1995-
Equivalent to $20.89 per share on
411,039,194 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $8,587.557
=================
Statement of Operations (dollars in
for the year ended March 31, 1995 millions)
- ---------------------------------------------- --------------- -------------
Investment Income:
Income:
Dividends $123.527
Interest 91.159 $214.686
-------------------
Expenses:
Management services fee 38.787
Distribution expenses 17.580
Transfer agent fee 8.186
Reports to shareholders 1.094
Registration statement and prospectus 1.353
Postage, stationery and supplies 2.110
Trustees' fees .134
Auditing and legal fees .072
Custodian fee 5.650
Taxes other than federal income tax .151
Other expenses .076 75.193
-------------------- ---------------
Net investment income 139.493
---------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 118.330
Net change in unrealized appreciation on
investments (235.483)
Net unrealized depreciation on open
forward currency contracts (5.437) (240.920)
--------------------- ---------------
Net realized gain and change in unrealized
appreciation on investments (122.590)
---------------
Net Increase in Net Assets Resulting from
Operations 16.903
===============
- ---------------------------------------------- ------------------- -----------------
Statement of Changes in Net Assets Year ended Year ended
(dollars in millions) 3/31/95 3/31/94
- ---------------------------------------------- ------------------- ----------------
Operations:
Net investment income $139.493 $53.441
Net realized gain on investments 118.330 240.257
Net change in unrealized appreciation
on investments (240.920) 693.993
------------------- -----------------
Net increase in net assets
resulting from operations 16.903 987.691
------------------- -----------------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (117.777) (47.825)
Distributions from net realized gain on
investments (296.792) (25.566)
------------------- -----------------
Total dividends and distributions (414.569) (73.391)
------------------- ----------------
Capital Share Transactions:
Proceeds from shares sold: 182,082,807
and 259,108,117 shares, respectively 3,929.930 3,658.224
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 18,345,378 and 3,171,650 shares,
respectively 389.766 66.105
Cost of shares repurchased: 82,279,286
and 54,180,032 shares, respectively (1,763.865) (1,201.225)
------------------- -----------------
Net increase in net assets resulting from
capital share transactions 2,555.831 2,523.104
------------------- -----------------
Total Increase in Net Assets 2,158.165 3,437.404
Net Assets:
Beginning of year 6,429.392 2,991.988
----------------- ----------------
End of year (including undistributed
net investment income: $27.816
and $10.771, respectively) $8,587.557 $6,429.392
==================== ================
</TABLE>
See 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 are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the year or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date. 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 year. 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 $5,650,000 includes $188,000 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 March 31, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $871,478,000, of which
$1,272,447,000 related to appreciated securities and $400,969,000 related to
depreciated securities. During the year ended March 31, 1995, the fund
realized, on a tax basis, a net capital gain of $116,621,000 on securities
transactions. Net gains related to non-U.S. currency transactions of
$1,709,000 were treated as ordinary income for federal income tax purposes.
The capital gain distribution paid in May 1994 includes $943,000 of realized
non-U.S. currency gains. The cost of portfolio securities, excluding forward
currency contracts, for book and federal income tax purposes was $7,704,858,000
at March 31, 1995.
3. The fee of $38,787,000 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 year ended March 31, 1995,
distribution expenses under the Plan were $17,580,000. As of March 31, 1995,
accrued and unpaid distribution expenses were $1,272,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $8,186,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $10,521,000 (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 March
31, 1995, aggregate amounts deferred were $65,000.
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 March 31, 1995, accumulated undistributed net realized gain on
investments was $26,234,000 and paid-in capital was $7,667,058,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,678,406,000 and $988,953,000, respectively, during
the year ended March 31, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
year ended March 31, 1995, such non-U.S. taxes were $15,799,000. Net realized
currency gains on dividends, interest, withholding taxes reclaimable, and sales
of non-U.S. bonds and notes were $2,156,000 for the year ended March 31, 1995.
In accordance with SOP 93-2, the fund reclassified $447,000 from undistributed
net investment income to undistributed net realized gains and $5,437,000 from
undistributed net investment income to paid-in capital for the year ended March
31, 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 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 March 31, 1995, the fund had outstanding
forward currency contracts to sell non-U.S. currencies as follows:
NON-U.S. CURRENCY SALE CONTRACTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Contract Amount U.S. Valuation at
3/31/95
Non-U.S. U.S. Amount Unrealized
Depreciation
Japanese Yen expiring Yen 5,048,575,000 $53,253,845 $58,691,262 $5,437,417
4/20 to 9/11/95
</TABLE>
- -------------
Per-Share Data and Ratios /1/
<TABLE>
<CAPTION>
Year
ended
March
31
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Year 21.95 17.64 16.64 $15.18 $14.39
-------- ----------- ------- ------- -------
Income From Investment
Operations:
Net investment income .35 .24 .22 .28 .28
Net realized and unrealized
gain (loss) on investments (.19) 4.37 1.04 1.48 1.02
-------- ---------- ------- ------- -------
Total income from investment
operations .16 4.61 1.26 1.76 1.30
-------- ---------- ------- ------- -------
Less Distributions:
Dividends from net investment
income (.317) (.19) (.22) (.30) (.33)
Dividends from net realized
non-U.S. currency gains /2/ (.003) (.04) (.04) - -
Distributions from net
realized gains (.90) (.07) - - (.18)
-------- ---------- ------- ------- -------
Total distributions (1.22) (.30) (.26) (.30) (.51)
-------- ---------- ------- ------- -------
Net Asset Value, End of Year $20.89 $21.95 $17.64 $16.64 $15.18
======== ========== ======= ======= =======
Total Return /3/ .71% 26.27% 7.69% 11.71% 9.11%
Ratios/Supplemental Data:
Net assets, end of year
(in millions) $8,588 $6,429 $2,992 $1,933 $1,138
Ratio of expenses to average
net assets .97% .99% 1.10% 1.24% 1.28%
Ratio of net income to average
net assets 1.80% 1.13% 1.40% 1.85% 2.23%
Portfolio turnover rate 16.02% 21.37% 10.35% 9.65% 8.58%
</TABLE>
/1/ Adjusted to reflect the 100%
share dividend effective June
10, 1993.
/2/ Realized non-U.S. currency
gains are treated as ordinary
income for federal income tax
purposes.
/3/ This was calculated without
deducting a sales charge. The
maximum sales charge is 5.75%
of the fund's offering price.
To the Board of Trustees and Shareholders
of EuroPacific Growth Fund
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of EuroPacific Growth Fund (the
"Trust") at March 31, 1995, the results of its operations, the changes in its
net assets and the per-share data and ratios for the years indicated in
conformity with generally accepted accounting principles. These financial
statements and per-share data and ratios (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
/s/Price Waterhouse
Los Angeles, California
April 28, 1995
Tax Information (unaudited)
The fund makes an election under the Internal Revenue Code Section 853 to pass
through non-U.S. taxes paid by the fund to its shareholders. The amount of
non-U.S. taxes passed through to shareholders for the fiscal year ended March
31, 1995 is $0.03927 per share. Since this amount is reported for the fiscal
year and not a calendar year, shareholders should refer to their Form 1099 DIV
mailed in January 1996 to determine the amounts to be included on their
respective tax returns for 1995. Shareholders are entitled to a foreign tax
credit, or an itemized deduction, at their option. Generally, it is more
advantageous to claim a credit than to take a deduction.
Corporate shareholders may deduct up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, none of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Certain states may exempt from income taxation a portion of the dividends paid
from net investment income if derived from direct U.S. Treasury obligations.
For purposes of computing this exclusion, non of the dividends paid by the fund
from net investment income was derived from interest on direct U.S. Treasury
obligations.
In January 1996, we will provide you information on distributions paid during
the CALENDAR year to help you in completing your 1995 income tax returns.
Shareholders are advised to consult with their own tax advisers with respect to
the tax consequences of their investment in the fund.
EUROPACIFIC GROWTH FUND
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
CHARLES P. NEIDIG retired from the Board of Trustees effective 3/31/95. He
had been a member of the Board since the inception of the fund in 1984.
The Trustees thank him for his many contributions.
DONALD E. PETERSEN was elected to the Board effective 4/1/95.
OTHER OFFICERS
STEPHEN 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, Los Angeles, California
Treasurer of the fund
Vice President and Treasurer,
Capital Research and Management Company
MARY C. CREMIN, Los Angeles, California
Assistant Treasurer of the fund
Senior Vice President - Fund Business Management Group,
Capital Research and Management Company
R. MARCIA GOULD, Los Angeles, 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 90071-2899
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
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.
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
June 30, 1995, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA BDA/AL/2624
Lit. No. EUPAC-011-0595
Printed on recycled paper
[The American Funds Group(R)]
