SEC. File Nos. 2-83847
811-3734
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 14
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 14
EUROPACIFIC GROWTH FUND
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(213) 486-9200
VINCENT P. CORTI
CAPITAL RESEARCH AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
MICHAEL J. FAIRCLOUGH, ESQ.
O'MELVENY & MYERS
400 South Hope Street
Los Angeles, California 90071
(Counsel for the Registrant)
The Registrant has filed a declaration pursuant to rule 24f-2
registering an indefinite number of shares under the Securities Act of 1933.
On May 15, 1995, it filed its 24f-2 notice for fiscal 1995.
Approximate date of proposed public offering:
It is proposed that this filing become effective on June 1, 1995, pursuant to
paragraph (b) of rule 485.
EUROPACIFIC GROWTH FUND
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
ITEM NUMBER OF PART "A" OF FORM N-1A CAPTIONS IN PROSPECTUS (PART "A")
<S> <C> <C>
1. Cover Page Cover Page
2. Synopsis Summary of Expenses
3. Condensed Financial Information Financial Highlights
4. General Description of Registrant Investment Objective and Policies; Certain Securities and
Investment Techniques; Multiple Portfolio Counselor System; Fund
Organization and Management
5. Management of the Fund Fund Organization and Management; Certain Securities and
Investment Techniques; Multiple Portfolio Counselor System
6. Capital Stock and Other Securities Investment Objective and Policies; Certain Securities and
Investment Techniques; Fund Organization and Management;
Dividends, Distributions and Taxes
7. Purchase of Securities Being Purchasing Shares; Fund Organization and Management
Offered
8. Redemption or Repurchase Redeeming Shares
9. Legal Proceedings N/A
</TABLE>
<TABLE>
<CAPTION>
ITEM NUMBER OF PART "B" OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION (PART "B")
<S> <C> <C>
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Fund Organization and Management (Part "A")
13. Investment Objectives and Policies Investment Policies; Description of Certain Securities; Investment
Restrictions
14. Management of the Registrant Fund Directors and Officers; Management
15. Control Persons and Principal Fund Directors and Officers
Holder of Securities
16. Investment Advisory and Other Management
Services
17. Brokerage Allocation and Other Execution of Portfolio Transactions
Practices
18. Capital Stock and Other Securities Part "A"
19. Purchase, Redemption and Pricing Purchase of Shares; Shareholder Account Services and Privileges;
. Of Securities Being Offered Redemption of Shares
20. Tax Status Dividends, Distributions and Federal Taxes
21. Underwriter Management -- Principal Underwriter
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
ITEM IN PART "C"
<S> <C> <C>
24. Financial Statements and Exhibits
25. Persons Controlled by or Under Common Control with Registrant
26. Number of Holders of Securities
27. Indemnification
28. Business and Other Connections of Investment Adviser
29. Principal Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
Signature Page
</TABLE>
<PAGE>
Prospectus
EuroPacific Growth Fund(R)
An opportunity for long-term
growth of capital through invest-
ments outside the United States
June 1, 1995
[LOGO]
<PAGE>
EUROPACIFIC GROWTH FUND
333 South Hope Street
Los Angeles, California 90071
The fund's investment objective
is to achieve long-term growth of
capital by investing in
securities of issuers domiciled
outside the U.S. Normally, the
fund seeks to achieve this
investment objective by investing
primarily in equity securities of
issuers domiciled in Europe or
the Pacific Basin.
This prospectus presents
information you should know
before investing in the fund. It
should be retained for future
reference.
You may obtain the statement of
additional information, dated
June 1, 1995, which contains the
fund's financial statements,
without charge, by writing to the
Secretary of the fund at the
above address or telephoning
800/421-0180. These requests will
be honored within three business
days of receipt.
SHARES OF THE FUND 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.
THE PURCHASE OF FUND SHARES
INVOLVES INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL
OFFENSE.
16-010-0695
<PAGE>
TABLE OF CONTENTS
Summary of Expenses............. 3
Financial Highlights............ 4
Investment Objective and
Policies........................ 4
Certain Securities andInvestment
Techniques..................... 6
Investment Results.............. 8
Dividends, Distributions and
Taxes........................... 8
Fund Organization and
Management...................... 9
The American FundsShareholder
Guide......................... 12-20
Purchasing Shares.............. 12
Reducing Your Sales Charge..... 15
Shareholder Services........... 16
Redeeming Shares............... 18
Retirement Plans............... 20
IMPORTANT PHONE NUMBERS
Shareholder Services:.... 800/421-0180 ext. 1
Dealer Services:......... 800/421-9900 ext. 11
American FundsLine(R).... 800/325-3590
(24-hour information)
<PAGE>
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SUMMARY OF This table is designed to help you understand costs of
EXPENSES investing in the fund. These are historical expenses;
your actual expenses may vary.
Average annual
expenses paid over
a 10-year period
would be
approximately $17
per year, assuming
a $1,000
investment and a
5% annual return.
<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum sales charge on purchases
(as a percentage of offering price).................... 5.75%/1/
The fund has no sales charge on reinvested dividends,
deferred sales charge,/2/ redemption fees or exchange
fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management fees......................................... 0.50%
12b-1 expenses.......................................... 0.23%/3/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)....... 0.24%
Total fund operating expenses........................... 0.97%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following
cumulative expenses on a $1,000 $67 $87 $108 $170
investment, assuming a 5% annual
return./4/
</TABLE>
/1/ Sales charges are reduced for certain large
purchases. (See "The American Funds Shareholder Guide:
Purchasing Shares--Sales Charges.")
/2/ Any defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including
a "401(k)" plan with 200 or more eligible employees or
any other purchaser investing at least $1 million in
shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the
money market funds) may purchase shares at net asset
value; however, a contingent deferred sales charge of
1% applies on certain redemptions within 12 months
following such purchases. (See "The American Funds
Shareholder Guide: Redeeming Shares--Contingent
Deferred Sales Charge.")
/3/ These expenses may not exceed 0.25% of the fund's
average net assets annually. (See "Fund Organization
and Management--Plan of Distribution.") Due to these
distribution expenses, long-term shareholders may pay
more than the economic equivalent of the maximum
front-end sales charge permitted by the National
Association of Securities Dealers.
/4/ Use of this assumed 5% return is required by the
Securities and Exchange Commission; it is not an
illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION
OF PAST OR FUTURE RESULTS; ACTUAL EXPENSES MAY BE
GREATER OR LESSER THAN THOSE SHOWN.
3
<PAGE>
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FINANCIAL The following information has been audited by Price
HIGHLIGHTS/1/ Waterhouse LLP, independent accountants, whose
(For a share unqualified report covering each of the most recent
outstanding five years is included in the statement of additional
throughout the information. This information should be read in
fiscal year) conjunction with the financial statements and
accompanying notes which appear in the statement of
additional information.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31
-------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year............................ $21.95 $17.64 $16.64 $15.18 $14.39 $13.38 $12.64 $13.46 $11.07 $ 7.19
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........... .35 .24 .22 .28 .28 .25 .23 .23 .15 .10
Net realized and unrealized gain
(loss) on investments.......... (.19) 4.37 1.04 1.48 1.02 1.95 1.54 .63 2.95 3.81
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total income from investment
operations..................... .16 4.61 1.26 1.76 1.30 2.20 1.77 .86 3.10 3.91
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income......................... (.317) (.19) (.22) (.30) (.33) (.28) (.18) (.33) (.09) (.03)
Dividends from net realized non-
U.S.
currency gains/2/.............. (.003) (.04) (.04) -- -- -- -- -- -- --
Distributions from net realized
gains.......................... (.90) (.07) -- -- (.18) (.91) (.85) (1.35) (.62) --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions............. (1.22) (.30) (.26) (.30) (.51) (1.19) (1.03) (1.68) (.71) (.03)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year..... $20.89 $21.95 $17.64 $16.64 $15.18 $14.39 $13.38 $12.64 $13.46 $11.07
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/3/................. .71% 26.27% 7.69% 11.71% 9.11% 16.99% 14.69% 8.12% 29.02% 54.48%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in mil-
lions)......................... $8,588 $6,429 $2,992 $1,933 $1,138 $ 584 $ 228 $ 188 $ 218 $ 112
Ratio of expenses to average net
assets......................... .97% .99% 1.10% 1.24% 1.28% 1.24% 1.30% 1.21% 1.27% 1.31%
Ratio of net income to average
net assets..................... 1.80% 1.13% 1.40% 1.85% 2.23% 2.29% 1.87% 1.56% 1.63% 1.88%
Portfolio turnover rate......... 16.02% 21.37% 10.35% 9.65% 8.58% 25.82% 35.47% 28.90% 22.13% 34.40%
</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.
INVESTMENT The fund's investment objective is to achieve long-term
OBJECTIVE AND growth of capital by investing in securities of issuers
POLICIES domiciled outside the U.S. Under normal market
conditions, the fund seeks to achieve this investment
The fund's goal is objective by investing primarily (at least 65% of its
to provide you assets) in equity securities of issuers domiciled in
with long-term Europe or the Pacific Basin. The Pacific Basin is
growth of capital generally defined as those countries bordering the
by investing in Pacific Ocean and includes, but is not limited to,
securities of Australia, Canada, Japan, Malaysia, and Singapore. The
issuers domiciled assets of the fund will be invested with geographic
outside the U.S. flexibility; accordingly, investments may be made from
time to time in issuers domiciled in, or governments
of, developing countries. The fund's investment
adviser, Capital Research and Management Company,
currently does not intend to invest more than 20% of
the fund's total assets (taken at cost) in securities
of issuers domiciled in, or governments of, developing
countries. See "Certain Securities and Investment
Techniques--Investing Around the World."
4
<PAGE>
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The fund may also invest in securities through
depositary receipts which may be denominated in various
currencies. For example, the fund may purchase American
Depositary Receipts which are U.S. dollar denominated
securities designed for use in the U.S. securities
markets which represent and may be converted to the
underlying security.
The fund may also invest in securities convertible into
common stocks, straight debt securities (generally
rated in the top three quality categories by Moody's
Investors Service, Inc. or Standard & Poor's
Corporation, or determined to be of equivalent quality
by Capital Research and Management Company), government
securities, or nonconvertible preferred stocks. In
addition, up to 5% of the fund's assets may be invested
in lower rated straight debt securities (including
securities commonly referred to as "junk" or "high-
yield, high-risk" bonds) or in unrated securities that
are determined to be of equivalent quality. High-yield,
high-risk bonds carry a higher degree of investment
risk and are considered speculative. For example, bonds
rated Ca or CC are described as "speculative in a high
degree; often in default or hav[ing] other marked
shortcomings." These securities will also be issued by
non-U.S. entities. The fund may hold a portion of its
assets in U.S. dollars and other currencies and in cash
equivalents of either U.S. or non-U.S. issuers. (See
the statement of additional information for a
description of cash equivalents.)
The fund's investment restrictions (which are described
in the statement of additional information) and
objective cannot be changed without shareholder
approval. All other investment practices may be changed
by the board of trustees.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVE CANNOT,
OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL LOSS
FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT IN
SECURITIES AND THE SPECIAL RISKS ASSOCIATED WITH
INVESTING OUTSIDE THE U.S. DESCRIBED HEREIN.
5
<PAGE>
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CERTAIN SECURITIES INVESTING AROUND THE WORLD The fund's assets are
AND INVESTMENT invested in securities of issuers domiciled outside the
TECHNIQUES United States which, in the opinion of Capital Research
and Management Company, enhances the fund's ability to
meet its objective of long-term growth of capital.
Investing outside Of course, investing outside the U.S. involves special
the U.S. involves risks caused by, among other things: fluctuating
expanded currency values; different accounting, auditing, and
opportunities, financial reporting regulations and practices in some
special risks and countries; changing local and regional economic,
increased costs. political, and social conditions; differing securities
market structures; and various administrative
difficulties such as delays in clearing and settling
portfolio transactions or in receiving payment of
dividends. However, in the opinion of Capital Research
and Management Company, investing outside the U.S. also
can reduce certain portfolio risks due to greater
diversification opportunities.
Although there is no universally accepted definition, a
developing country is generally considered to be a
country which is in the initial stages of its industri-
alization cycle with a low per capita gross national
product. Historical experience indicates that the mar-
kets of developing countries have been more volatile
than the markets of developed countries and will in-
volve each of the risks described above, although po-
tentially to a greater degree.
Additional costs could be incurred in connection with
the fund's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the fund will bear certain expenses in
connection with its currency transactions. Furthermore,
increased custodian costs may be associated with the
maintenance of assets in certain jurisdictions.
CURRENCY TRANSACTIONS The fund has the ability to hold
a portion of its assets in U.S. dollars and other
currencies. The fund may also enter into forward
exchange contracts and forward currency contracts in
connection with investing in non-U.S. dollar
denominated securities. Foreign exchange contracts are
used to facilitate settlements of trades. Forward
currency contracts are used to hedge against changes in
currency exchange rates relative to the U.S. dollar.
There is no assurance that the use of currency
contracts will be successful. Moreover, due to the
expenses and risks involved, the fund will not
generally attempt to protect against all potential
changes in exchange rates. For additional information,
see "Currency Transactions" in the statement of
additional information.
RULE 144A SECURITIES Normally, securities acquired in
U.S. private placements are subject to contractual re-
strictions on resale and may not be resold except pur-
suant to a registration statement under the Securities
6
<PAGE>
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Act of 1933 or in reliance upon an exemption from the
registration requirements under that Act, for example,
private placements sold pursuant to Rule 144A.
Accordingly, any such obligation will be deemed
illiquid (unless procedures for determining liquidity
are adopted by the fund's board of trustees), and the
fund may incur certain additional costs in disposing of
such securities. The fund will not invest more than 5%
of the value of its total assets in restricted
securities. Non-U.S. securities that can be freely
traded in a securities market outside the U.S. are
excluded from this limitation.
(See the statement of additional information.)
MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments which are managed by individual counselors.
Each counselor decides how the segment will be invested
(within the limits provided by the fund's objectives
and policies and by Capital Research and Management
Company's investment committee). In addition, Capital
Research and Management Company's research
professionals make investment decisions with respect to
a portion of the fund's portfolio. The primary
individual portfolio counselors for the fund are listed
below.
<TABLE>
<CAPTION>
YEARS OF EXPERIENCE
AS
INVESTMENT PROFESSIONAL
(APPROXIMATE)
WITH CAPITAL
RESEARCH AND
PORTFOLIO YEARS OF EXPERIENCE AS MANAGEMENT
COUNSELORS FOR PORTFOLIO COUNSELOR FOR COMPANY OR
EUROPACIFIC GROWTH EUROPACIFIC GROWTH FUND ITS TOTAL
FUND PRIMARY TITLE(S) (APPROXIMATE) AFFILIATES YEARS
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Thierry Vandeventer Trustee and President Since the fund began 32 years 32 years
of the fund. Chairman operations in 1984
of the Board, Capital
Research Company*
- --------------------------------------------------------------------------------------------
Stephen E. Bepler Executive Vice Since the fund began 23 years 29 years
President of the operations
fund. Senior Vice in 1984
President and
Director, Capital
Research Company*
- --------------------------------------------------------------------------------------------
Janet A. McKinley Vice President of the 5 years (in addition 13 years 19 years
fund. Senior Vice to 5 years as a
President, Capital research professional
Research Company* prior to becoming a
portfolio counselor
for the fund)
- --------------------------------------------------------------------------------------------
Mark E. Denning Vice President of the 4 years (in addition 13 years 13 years
fund. Senior Vice to 3 years as a
President, Capital research professional
Research Company* prior to becoming a
portfolio counselor
for the fund)
</TABLE>
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* COMPANY AFFILIATED WITH CAPITAL RESEARCH AND MANAGEMENT COMPANY.
7
<PAGE>
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INVESTMENT RESULTS The fund may from time to time compare its investment
results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
advertisements. The results may be calculated on a
total return and/or yield basis for various periods,
with or without sales charges. Results calculated
without a sales charge will be higher. Total returns
assume the reinvestment of all dividends and capital
gain distributions.
The fund has The fund's total return over the past 12 months and
averaged a total average annual total returns over the past five-year
return of 15.39% a and ten-year periods as of March 31, 1995, were -5.09%,
year (assuming the +9.48% and +16.35%, respectively. These results were
maximum sales calculated in accordance with Securities and Exchange
charge was paid) Commission rules which require that the maximum sales
over its lifetime charge be deducted. Of course, past results are not an
indication of future results. Further information
regarding the fund's investment results is contained in
April 16, 1984 the fund's annual report which may be obtained without
through March 31, charge by writing to the Secretary of the fund at the
1995. address indicated on the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS AND in June and December. All capital gains, if any, are
TAXES distributed annually, usually in December. When a
dividend or capital gain is distributed, the net asset
value per share is reduced by the amount of the
payment.
Income FEDERAL TAXES The fund intends to operate as a
distributions are "regulated investment company" under the Internal
usually made in Revenue Code. In any fiscal year in which the fund so
June and December. qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax.
All dividends and capital gains are taxable whether
they are reinvested or received in cash--unless you are
exempt from taxation or entitled to tax deferral. Early
each year, you will be notified as to the amount and
federal tax status of all dividends and capital gains
paid during the prior year. Such dividends and capital
gains may also be subject to state or local taxes.
IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE SERVICE HAS
NOTIFIED THE FUND THAT THE TAXPAYER IDENTIFICATION
NUMBER LISTED ON YOUR ACCOUNT IS INCORRECT ACCORDING TO
THEIR RECORDS OR THAT YOU ARE SUBJECT TO BACKUP
WITHHOLDING, FEDERAL LAW GENERALLY REQUIRES THE FUND TO
WITHHOLD 31% FROM ANY DIVIDENDS AND/OR REDEMPTIONS
(INCLUDING EXCHANGE REDEMPTIONS). Amounts withheld are
applied to your federal tax liability; a refund may be
obtained from the Service if withholding results in
overpayment of taxes. Federal law also requires the
fund to withhold 30% or the applicable tax treaty rate
from dividends paid to certain nonresident alien, non-
U.S. partnership and non-U.S. corporation shareholder
accounts.
8
<PAGE>
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The fund may be required to pay withholding and other
taxes imposed by various countries in connection with
its investments outside the U.S. generally at rates
from 10% to 40%, which would reduce the fund's
investment income.
This is a brief summary of some of the tax laws that
affect your investment in the fund. Please see the
statement of additional information and your tax
adviser for further information.
FUND ORGANIZATION FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
AND MANAGEMENT end diversified management investment company, was
organized as a Massachusetts business trust in 1983.
The fund is a The fund's board supervises fund operations and
member of The performs duties required by applicable state and
American Funds federal law. Members of the board who are not employed
Group, which is by Capital Research and Management Company or its
managed by one of affiliates are paid certain fees for services rendered
the largest and to the fund as described in the statement of additional
most experienced information. They may elect to defer all or a portion
investment of these fees through a deferred compensation plan in
advisers. effect for the fund. All shareholders have one vote per
share owned, and at the request of holders of at least
10% of the shares, the fund will hold a meeting at
which any member of the board could be removed and a
successor elected. There will not usually be a
shareholder meeting in any year except, for example,
when the election of the board is required to be acted
upon by shareholders under the Investment Company Act
of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide: Purchasing Shares--Investment
Minimums and Fund Numbers" for a listing of funds in
The American Funds Group.) Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rate of 0.69% on the first $500 million of the
fund's average net assets, plus 0.59% on such assets in
excess of $500 million but less than $1 billion, plus
0.53% on such assets in excess of $1 billion but less
than $1.5 billion, plus 0.50% on such assets in excess
of $1.5 billion but less than $2.5 billion, plus 0.48%
on such assets in excess of $2.5 billion but less than
$4 billion, plus 0.47% on such assets in excess of $4
billion but less than $6.5 billion, plus 0.465% on such
assets in excess of $6.5 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles,
9
<PAGE>
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CA 90071. The research activities of Capital Research
and Management Company are conducted by affiliated
companies which have offices in Los Angeles, San
Francisco, New York, Washington, D.C., London, Geneva,
Singapore, Hong Kong and Tokyo.
Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors is located
at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92621, 8000 IH-
10 West, San Antonio, TX 78230, 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240 and 5300 Robin Hood
Road, Norfolk, VA 23513. Telephone conversations with
American Funds Distributors may be recorded or
monitored for verification, recordkeeping and quality
assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan is in effect. Expenditures by the fund under
the plan may not exceed 0.25% of its average net assets
annually (0.25% of which may be for service fees). See
"The American Funds Shareholder Guide: Purchasing
Shares--Sales Charges" below.
10
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TRANSFER AGENT American Funds Service Company, a wholly
owned subsidiary of Capital Research and Management
Company, is the transfer agent and performs shareholder
service functions. It was paid a fee of $8,186,000 for
the fiscal year ended March 31, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
ADDRESS AREAS SERVED
--------------------------------------------------------
WEST P.O. Box 2205 Brea, CA 92622-2205 Fax:
714/671-7080
AK, AZ, CA, HI, ID,
MT, NV, OR, UT, WA and
outside the U.S.
--------------------------------------------------------
CENTRAL- WEST
P.O. Box 659522 San Antonio, TX 78265-9522
Fax: 210/530-4050
AR, CO, IA, KS, LA,
MN, MO, ND, NE, NM,
OK, SD, TX, and WY
--------------------------------------------------------
CENTRAL- EAST
P.O. Box 6007 Indianapolis, IN 46206-6007
Fax: 317/735-6620
AL, IL, IN, KY, MI,
MS, OH, TNand WI
--------------------------------------------------------
EAST P.O. Box 2280 Norfolk, VA 23501-2280 Fax:
804/670-4773
CT, DE, FL, GA, MA,
MD, ME, NC, NH, NJ,
NY, PA, RI, SC, VA,
VT, WV and Washington,
D.C.
--------------------------------------------------------
ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE
COMPANY AT 800/421-0180 FOR SERVICE.
--------------------------------------------------------
[MAP OF UNITED STATES]
--------------------------------------------------------
West (light grey); Central-West (white); Central-East
(dark grey); East (red)
11
<PAGE>
[LOGO OF THE AMERICAN FUNDS SHAREHOLDER GUIDE]
PURCHASING SHARES METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
---------------------------------------------------------
Your investment See "Investment $50 minimum (except
dealer can help Minimums and Fund where a lower
you establish your Numbers" for minimum is noted
account--and help initial under "Investment
you add to it investment Minimums and Fund
whenever you like. minimums. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state printed on your
dealer where the account statement.
purchase is made
and who has a
sales agreement
with American
Funds
Distributors.
---------------------------------------------------------
By mail Make your check Fill out the account
payable to the additions form at the
fund and mail to bottom of a recent
the address account statement,
indicated on the make your check
account payable to the fund,
application. write your account
Please indicate number on your check,
an investment and mail the check
dealer on the and form in the
account envelope provided
application. with your account
statement.
---------------------------------------------------------
By wire Call 800/421-0180 Your bank should wire
to obtain your your additional
account investments in the
number(s), if same manner as
necessary. Please described under
indicate an "Initial Investment."
investment dealer
on the account.
Instruct your
bank to wire
funds to:
Wells Fargo Bank
155 Fifth Street
Sixth Floor
San Francisco,
CA 94106
(ABA #121000248)
For credit to the
account of:
American Funds
Service Company
a/c #4600-076178
(fund name)
(your fund acct.
no.)
---------------------------------------------------------
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO REJECT ANY PURCHASE ORDER.
SHARE PRICE Shares are purchased at the next offering
price after the order is received by the fund or
American Funds Service Company. In the case of orders
sent directly to the fund or American Funds Service
Company, an investment dealer MUST be indicated. This
price is the net asset value plus a sales charge, if
applicable. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The net asset value per share is determined as of the
close of trading (currently 4:00 p.m., New York time) on
each day the New York Stock Exchange is open. The
current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share. The net asset value
per share of the money market funds normally will remain
constant at $1.00 based on the funds' current practice
of valuing their shares on the basis of the penny-
rounding method in accordance with rules of the
Securities and Exchange Commission.
SHARE CERTIFICATES Shares are credited to your account
and certificates are not issued unless specifically
requested. This eliminates the costly problem of lost or
destroyed certificates.
12
<PAGE>
- -------------------------------------------------------------------------------
If you would like certificates issued, please request
them by writing to American Funds Service Company.
There is usually no charge for issuing certificates in
reasonable denominations. CERTIFICATES ARE NOT
AVAILABLE FOR THE MONEY MARKET FUNDS.
INVESTMENT MINIMUMS AND FUND NUMBERS Here are the
minimum initial investments required by the funds in
The American Funds Group along with fund numbers for
use with our automated phone line, American
FundsLine(R) (see description below):
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund(R)......... $1,000 02
American Balanced
Fund(R).............. 500 11
American Mutual
Fund(R).............. 250 03
Capital Income
Builder(R)........... 1,000 12
Capital World Growth
and Income Fund(SM).. 1,000 33
EuroPacific Growth
Fund(R).............. 250 16
Fundamental
Investors(SM)........ 250 10
The Growth Fund of
America(R)........... 1,000 05
The Income Fund of
America(R)........... 1,000 06
The Investment Company
of America(R)........ 250 04
The New Economy
Fund(R).............. 1,000 14
New Perspective
Fund(R).............. 250 07
SMALLCAP World
Fund(SM)............. 1,000 35
Washington Mutual
Investors Fund(SM)... 250 01
</TABLE>
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
BOND FUNDS
American High-Income
Municipal Bond
Fund(SM)............... $1,000 40
American High-Income
Trust(R)............... 1,000 21
The Bond Fund of
America(SM)............ 1,000 08
Capital World Bond
Fund(R)................ 1,000 31
Intermediate Bond Fund
of America(R).......... 1,000 23
Limited Term Tax-Exempt
Bond Fund of
America(SM)............ 1,000 43
The Tax-Exempt Bond Fund
of America(SM)......... 1,000 19
The Tax-Exempt Fund of
California(R)*......... 1,000 20
The Tax-Exempt Fund of
Maryland(R)*........... 1,000 24
The Tax-Exempt Fund of
Virginia(R)*........... 1,000 25
U.S. Government
Securities Fund(SM).... 1,000 22
MONEY MARKET FUNDS
The Cash Management
Trust of America(R).... 2,500 09
The Tax-Exempt Money
Fund of America(SM).... 2,500 39
The U.S. Treasury Money
Fund of America(SM).... 2,500 49
</TABLE>
--------
*Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs).
Minimums are reduced to $50 for purchases through
"Automatic Investment Plans" (except for the money
market funds) or to $25 for purchases by retirement
plans through payroll deductions and may be reduced or
waived for shareholders of other funds in The American
Funds Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS
RETIREMENT PLAN INVESTMENTS. The minimum is $50 for
additional investments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
13
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE NET AMOUNT OFFERING OFFERING
AT THE OFFERING PRICE INVESTED PRICE PRICE
--------------------- ---------- -------- -------------
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000................. 6.10% 5.75% 5.00%
$50,000 but less than $100,000.... 4.71 4.50 3.75
BOND FUNDS
Less than $25,000................. 4.99 4.75 4.00
$25,000 but less than $50,000..... 4.71 4.50 3.75
$50,000 but less than $100,000.... 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000... 3.63 3.50 2.75
$250,000 but less than $500,000... 2.56 2.50 2.00
$500,000 but less than $1,000,000. 2.04 2.00 1.60
$1,000,000 or more................ none none (see below)
</TABLE>
Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1
million or more, for purchases by any defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees (paid pursuant to the
fund's plan of distribution), and for purchases made at
net asset value by certain retirement plans of
organizations with collective retirement plan assets of
$100 million or more as set forth in the statement of
additional information (paid by American Funds
Distributors).
American Funds Distributors, at its expense (from a
designated percentage of its income), will provide
additional promotional incentives to dealers. Currently
these incentives are limited to the top one hundred
dealers who have sold shares of the fund or other funds
in The American Funds Group. These incentive payments
will be based on a pro rata share of a qualifying
dealer's sales.
Any defined contribution plan qualified under Section
401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees or
any other purchaser investing at least $1 million in
shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the
money market funds) may purchase shares at net asset
value; however, a contingent deferred sales charge of
1% is imposed on certain redemptions within one year of
the purchase. (See "Redeeming Shares--Contingent
Deferred Sales Charge.")
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to compensate
them for providing certain services. (See "Fund
Organization and Management--
14
<PAGE>
- -------------------------------------------------------------------------------
Plan of Distribution.") These services include
processing purchase and redemption transactions,
establishing shareholder accounts and providing certain
information and assistance with respect to the fund.
NET ASSET VALUE PURCHASES The stock, stock/bond and
bond funds may sell shares at net asset value to: (1)
current or retired directors, trustees, officers and
advisory board members of the funds managed by Capital
Research and Management Company, employees of
Washington Management Corporation, employees and
partners of The Capital Group Companies, Inc. and its
affiliated companies, certain family members of the
above persons, and trusts or plans primarily for such
persons; (2) current or retired registered
representatives or full-time employees and their
spouses and minor children of dealers having sales
agreements with American Funds Distributors and plans
for such persons; (3) companies exchanging securities
with the fund through a merger, acquisition or exchange
offer; (4) trustees or other fiduciaries purchasing
shares for certain retirement plans of organizations
with retirement plan assets of $100 million or more;
(5) insurance company separate accounts; (6) accounts
managed by subsidiaries of The Capital Group Companies,
Inc.; and (7) The Capital Group Companies, Inc., its
affiliated companies and Washington Management
Corporation. Shares are offered at net asset value to
these persons and organizations due to anticipated
economies in sales effort and expense.
REDUCING AGGREGATION Sales charge discounts are available for
YOUR SALES certain aggregated investments. Qualifying investments
CHARGE include those by you, your spouse and your children
under the age of 21, if all parties are purchasing
You and your shares for their own account(s), which may include
immediate family purchases through employee benefit plan(s) such as an
may combine IRA, individual-type 403(b) plan or single-participant
investments to Keogh-type plan or by a business solely controlled by
reduce your costs. these individuals (for example, the individuals own the
entire business) or by a trust (or other fiduciary
arrangement) solely for the benefit of these
individuals. Individual purchases by a trustee(s) or
other fiduciary(ies) may also be aggregated if the
investments are (1) for a single trust estate or
fiduciary account, including an employee benefit plan
other than those described above or (2) made for two or
more employee benefit plans of a single employer or of
affiliated employers as defined in the Investment
Company Act of 1940, again excluding employee benefit
plans described above, or (3) for a diversified common
trust fund or other diversified pooled account not
specifically formed for the purpose of accumulating
fund shares. Purchases made for nominee or street name
accounts (securities held in the name of an investment
dealer or another nominee such as a bank trust
department instead of the customer) may not be
aggregated with those made for other accounts and may
not be aggregated with other nominee or street name
accounts unless otherwise qualified as described above.
15
<PAGE>
- -------------------------------------------------------------------------------
CONCURRENT PURCHASES To qualify for a reduced sales
charge, you may combine concurrent purchases of two or
more funds in The American Funds Group, except direct
purchases of the money market funds. (Shares of the
money market funds purchased through an exchange,
reinvestment or cross-reinvestment from a fund having a
sales charge do qualify.) For example, if you
concurrently invest $25,000 in one fund and $25,000 in
another, the sales charge would be reduced to reflect a
$50,000 purchase.
RIGHT OF ACCUMULATION The sales charge for your invest-
ment may also be reduced by taking into account the
current value of your existing holdings in The American
Funds Group. Direct purchases of the money market funds
are excluded. (See account application.)
STATEMENT OF INTENTION You may reduce sales charges on
all investments by meeting the terms of a statement of
intention, a non-binding commitment to invest a certain
amount in fund shares subject to a commission within a
13-month period. Five percent of the statement amount
will be held in escrow to cover additional sales
charges which may be due if your total investments over
the statement period are insufficient to qualify for a
sales charge reduction. (See account application and
the statement of additional information under "Purchase
of Shares--Statement of Intention.")
YOU MUST LET YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY KNOW IF YOU QUALIFY FOR A REDUCTION IN
YOUR SALES CHARGE USING ONE OR ANY COMBINATION OF THE
METHODS DESCRIBED ABOVE.
AUTOMATIC INVESTMENT PLAN You may make regular monthly
SHAREHOLDER or quarterly investments through automatic charges to
SERVICES your bank account. Once a plan is established, your ac-
count will normally be charged by the 10th day of the
The fund offers month during which an investment is made (or by the
you a valuable 15th day of the month in the case of any retirement
array of services plan for which Capital Guardian Trust Company--another
designed to affiliate of The Capital Group Companies, Inc.--acts as
increase the trustee or custodian).
convenience and
flexibility of AUTOMATIC REINVESTMENT Dividends and capital gain dis-
your investment-- tributions are reinvested in additional shares at no
services you can sales charge unless you indicate otherwise on the
use to alter your account application. You also may elect to have divi-
investment program dends and/or capital gain distributions paid in cash by
as your needs and informing the fund, American Funds Service Company or
circumstances your investment dealer.
change.
CROSS-REINVESTMENT You may cross-reinvest dividends or
dividends and capital gain distributions paid by one
fund into another fund in The American Funds Group,
subject to conditions outlined in the statement of ad-
ditional information. Generally, to use this service
the value of your account in the paying fund must equal
at least $5,000.
EXCHANGE PRIVILEGE You may exchange shares into other
funds in The American Funds Group. Exchange purchases
are subject to the minimum investment requirements of
the fund purchased and no sales
16
<PAGE>
- -------------------------------------------------------------------------------
charge generally applies. However, exchanges of shares
from the money market funds are subject to applicable
sales charges on the fund being purchased, unless the
money market fund shares were acquired by an exchange
from a fund having a sales charge, or by reinvestment
or cross-reinvestment of dividends or capital gain
distributions.
You may exchange shares by writing to American Funds
Service Company (see "Redeeming Shares"), by contacting
your investment dealer, by using American FundsLine(R)
(see "Shareholder Services--American FundsLine(R)" be-
low), or by telephoning 800/421-0180 toll-free, faxing
(see "Transfer Agent" above for the appropriate fax
numbers) or telegraphing American Funds Service Compa-
ny. (See "Telephone Redemptions and Exchanges" below.)
Shares held in corporate-type retirement plans for
which Capital Guardian Trust Company serves as trustee
may not be exchanged by telephone, fax or telegraph.
Exchange redemptions and purchases are processed simul-
taneously at the share prices next determined after the
exchange order is received. (See "Purchasing Shares--
Share Price.") THESE TRANSACTIONS HAVE THE SAME TAX
CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES You may automatically exchange
shares (in amounts of $50 or more) among any of the
funds in The American Funds Group on any day (or pre-
ceding business day if the day falls on a non-business
day) of each month you designate. You must either meet
the minimum initial investment requirement for the re-
ceiving fund OR the originating fund's balance must be
at least $5,000 and the receiving fund's minimum must
be met within one year.
AUTOMATIC WITHDRAWALS You may make automatic
withdrawals of $50 or more as follows: five or more
times per year if you have an account of $10,000 or
more, or four or fewer times per year if you have an
account of $5,000 or more. Withdrawals are made on or
about the 15th day of each month you designate, and
checks will be sent within seven days. (See "Other
Important Things to Remember.") Additional investments
in a withdrawal account must not be less than one
year's scheduled withdrawals or $1,200, whichever is
greater. However, additional investments in a
withdrawal account may be inadvisable due to sales
charges and tax liabilities.
THESE SERVICES ARE AVAILABLE ONLY IN STATES WHERE THE
FUND TO BE PURCHASED MAY BE LEGALLY OFFERED AND MAY BE
TERMINATED OR MODIFIED AT ANY TIME UPON 60 DAYS'
WRITTEN NOTICE.
ACCOUNT STATEMENTS Your account is opened in accordance
with your registration instructions. Transactions in
the account, such as additional investments and
dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service
Company.
17
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN FUNDSLINE(R) You may check your share balance,
the price of your shares, or your most recent account
transaction, redeem shares (up to $10,000 per fund, per
account each day), or exchange shares around the clock
with American FundsLine(R). To use this service, call
800/325-3590 from a TouchTone(TM) telephone.
Redemptions and exchanges through American FundsLine(R)
are subject to the conditions noted above and in
"Redeeming Shares--Telephone Redemptions and Exchanges"
below. You will need your fund number (see the list of
funds in The American Funds Group under "Purchasing
Shares--Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of
your Social Security number or other tax identification
number associated with your account) and account
number.
REDEEMING By writing to Send a letter of instruction
SHARES American specifying the name of the fund, the
Funds Service number of shares or dollar amount to
You may take money Company (at be sold, your name and account
out of your the number. You should also enclose any
account whenever appropriate share certificates you wish to
you please. address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under "Fund $50,000 or less (see below), your
Organization signature must be guaranteed by a
and bank, savings association, credit
Management-- union, or member firm of a domestic
Transfer stock exchange or the National
Agent") Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
By contacting If you redeem shares through your
your investment dealer, you may be charged
investment for this service. SHARES HELD FOR YOU
dealer IN YOUR INVESTMENT DEALER'S STREET
NAME MUST BE REDEEMED THROUGH THE
DEALER.
--------------------------------------------------------
You may have You may use this option, provided the
a redemption account is registered in the name of
check sent to an individual(s), a UGMA/UTMA
you by using custodian, or a non-retirement plan
American trust. These redemptions may not
FundsLine(R) exceed $10,000 per day, per fund
or by account and the check must be made
telephoning, payable to the shareholder(s) of
faxing, or record and be sent to the address of
telegraphing record provided the address has been
American used with the account for at least 10
Funds Service days. See "Transfer Agent" and
Company "Exchange Privilege" above for the
(subject to appropriate telephone or fax number.
the
conditions
noted in this
section and
in "Telephone
Redemptions
and
Exchanges"
below)
--------------------------------------------------------
In the case Upon request (use the account
of the money application for the money market
market funds, funds) you may establish telephone
you may have redemption privileges (which will
redemptions enable you to have a redemption sent
wired to your to your bank account) and/or check
bank by writing privileges. If you request
telephoning check writing privileges, you will be
American provided with checks that you may use
Funds Service to draw against your account. These
Company checks may be made payable to anyone
($1,000 or you designate and must be signed by
more) or by the authorized number of registered
writing a shareholders exactly as indicated on
check ($250 your checking account signature card.
or more)
--------------------------------------------------------
A SIGNATURE GUARANTEE IS NOT CURRENTLY REQUIRED FOR ANY
REDEMPTION OF $50,000 OR LESS PROVIDED THE REDEMPTION
CHECK IS MADE PAYABLE TO THE REGISTERED SHAREHOLDER(S)
AND IS MAILED TO THE ADDRESS OF RECORD, PROVIDED THE
ADDRESS HAS BEEN USED WITH THE ACCOUNT FOR AT LEAST 10
DAYS.
18
<PAGE>
- -------------------------------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, you agree
to hold the fund, American Funds Service Company, any
of its affiliates or mutual funds managed by such
affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from
any losses, expenses, costs or liability (including
attorney fees) which may be incurred in connection with
the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these
options. However, you may elect to opt out of these
options by writing American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees. The
charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be
redeemed first for purposes of calculating this charge.
The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12
months of the initial purchase); for distributions from
qualified retirement plans and other employee benefit
plans; for distributions from 403(b) plans or IRAs due
to death, disability or attainment of age 59 1/2; for
tax-free returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without sales charge (any contingent deferred sales
charge paid will be credited to your account) in any
fund in The American Funds Group. Send a written
19
<PAGE>
- -------------------------------------------------------------------------------
request and a check to American Funds Service Company
within 90 days after the date of the redemption or
distribution. Reinvestment will be at the next
calculated net asset value after receipt. The tax
status of a gain realized on a redemption will not be
affected by exercise of the reinstatement privilege,
but a loss may be nullified if you reinvest in the same
fund within 30 days. If you redeem your shares within
90 days after purchase and the sales charge on the
purchase of other shares is waived under the
reinstatement privilege, the sales charge you
previously paid for the shares may not be taken into
account when you calculate your gain or loss on that
redemption.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because each stock,
stock/bond and bond fund's net asset value fluctuates,
reflecting the market value of the fund's portfolio,
the amount a shareholder receives for shares redeemed
may be more or less than the amount paid for them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
A fund may, with 60 days' written notice, close your
account if, due to a redemption, the account has a
value of less than the minimum required initial
investment. (For example, a fund may close an account
if a redemption is made shortly after a minimum initial
investment is made.)
RETIREMENT You may invest in the funds through various retirement
PLANS plans including the following plans for which Capital
Guardian Trust Company acts as trustee or custodian:
IRAs, Simplified Employee Pension plans, 403(b) plans
and Keogh- and corporate-type business retirement
plans. For further information about any of the plans,
agreements, applications and annual fees, contact
American Funds Distributors or your investment dealer.
To determine which retirement plan is appropriate for
you, please consult your tax adviser. TAX-EXEMPT FUNDS
SHOULD NOT SERVE AS INVESTMENTS FOR RETIREMENT PLANS.
FOR MORE INFORMATION, PLEASE REFER TO THE ACCOUNT
APPLICATION OR THE STATEMENT OF ADDITIONAL INFORMATION.
IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE SHAREHOLDER
SERVICES DESCRIBED HEREIN OR YOUR ACCOUNT, PLEASE
CONTACT YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY.
[LOGO OF This prospectus has been printed on
RECYCLED PAPER] recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
20
<PAGE>
EUROPACIFIC GROWTH FUND
333 South Hope Street
Los Angeles, California 90071
The fund's investment objective
is to achieve long-term growth of
capital by investing in
securities of issuers domiciled
outside the U.S. Normally, the
fund seeks to achieve this
investment objective by investing
primarily in equity securities of
issuers domiciled in Europe or
the Pacific Basin.
This prospectus relates only to
shares of the fund offered
without a sales charge to
eligible retirement plans. For a
prospectus regarding shares of
the fund to be acquired
otherwise, contact the Secretary
of the fund at the address
indicated above.
This prospectus presents
information you should know
before investing in the fund. It
should be retained for future
reference.
You may obtain the statement of
additional information, dated
June 1, 1995, which contains the
fund's financial statements,
without charge, by writing to the
Secretary of the fund at the
above address or telephoning
800/421-0180. These requests will
be honored within three business
days of receipt.
SHARES OF THE FUND 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.
THE PURCHASE OF FUND SHARES
INVOLVES INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL
OFFENSE.
June 1, 1995 RP 16-010-0695
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY OF This table is designed to help you understand costs of
EXPENSES investing in the fund. These are historical expenses;
your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Average annual Certain retirement plans may purchase shares of the
expenses paid over funds with no sales charge./1/ The fund also has no
a 10-year period sales charge on reinvested dividends, deferred sales
would be charge, redemption fees or exchange fees.
approximately $12
per year, assuming
a $1,000
investment and a
5% annual return.
<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management fees......................................... 0.50%
12b-1 expenses.......................................... 0.23%/3/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)...... 0.24%
Total fund operating expenses........................... 0.97%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following
cumulative expenses on a $1,000
investment, assuming a 5% annual $10 $31 $54 $119
return.
</TABLE>
/1/ Retirement plans of organizations with $100 million
or more in collective retirement plan assets may
purchase shares of the fund with no sales charge. In
addition, any defined contribution plan qualified
under Section 401(a) of the Internal Revenue Code
including a "401(k)" plan with 200 or more eligible
employees or any other purchaser investing at least $1
million in shares of the fund (or in combination with
shares of other funds in The American Funds Group
other than the money market funds) may purchase shares
at net asset value; however, a contingent deferred
sales charge of 1% applies on certain redemptions
within 12 months following such purchases. (See
"Redeeming Shares--Contingent Deferred Sales Charge.")
/2/ These expenses may not exceed 0.25% of the fund's
average net assets annually. (See "Fund Organization
and Management--Plan of Distribution.") Due to these
distribution expenses, long-term shareholders may pay
more than the economic equivalent of the maximum
front-end sales charge permitted by the National
Association of Securities Dealers.
/3/ Use of this assumed 5% return is required by the
Securities and Exchange Commission; it is not an
illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION
OF PAST OR FUTURE RESULTS; ACTUAL EXPENSES MAY BE
GREATER OR LESSER THAN THOSE SHOWN.
TABLE OF CONTENTS
Summary of Expenses....... 2
Financial Highlights...... 3
Investment Objective
and Policies.............. 3
Certain Securities and
Investment Techniques..... 4
Investment Results........ 6
Dividends, Distributions
and Taxes................. 7
Fund Organization and
Management................ 7
Purchasing Shares......... 9
Shareholder Services...... 10
Redeeming Shares.......... 11
2
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL The following information has been audited by Price
HIGHLIGHTS/1/ Waterhouse LLP, independent accountants, whose
(For a share unqualified report covering each of the most recent five
outstanding years is included in the statement of additional
throughout the information. This information should be read in
fiscal year) conjunction with the financial statements and
accompanying notes which appear in the statement of
additional information.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31
-------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year............................ $21.95 $17.64 $16.64 $15.18 $14.39 $13.38 $12.64 $13.46 $11.07 $ 7.19
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........... .35 .24 .22 .28 .28 .25 .23 .23 .15 .10
Net realized and unrealized gain
(loss) on investments.......... (.19) 4.37 1.04 1.48 1.02 1.95 1.54 .63 2.95 3.81
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total income from investment
operations..................... .16 4.61 1.26 1.76 1.30 2.20 1.77 .86 3.10 3.91
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income......................... (.317) (.19) (.22) (.30) (.33) (.28) (.18) (.33) (.09) (.03)
Dividends from net realized non-
U.S. currency gains/2/......... (.003) (.04) (.04) -- -- -- -- -- -- --
Distributions from net realized
gains.......................... (.90) (.07) -- -- (.18) (.91) (.85) (1.35) (.62) --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions............. (1.22) (.30) (.26) (.30) (.51) (1.19) (1.03) (1.68) (.71) (.03)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year..... $20.89 $21.95 $17.64 $16.64 $15.18 $14.39 $13.38 $12.64 $13.46 $11.07
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/3/................. .71% 26.27% 7.69% 11.71% 9.11% 16.99% 14.69% 8.12% 29.02% 54.48%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in mil-
lions)......................... $8,588 $6,429 $2,992 $1,933 $1,138 $ 584 $ 228 $ 188 $ 218 $ 112
Ratio of expenses to average net
assets......................... .97% .99% 1.10% 1.24% 1.28% 1.24% 1.30% 1.21% 1.27% 1.31%
Ratio of net income to average
net assets..................... 1.80% 1.13% 1.40% 1.85% 2.23% 2.29% 1.87% 1.56% 1.63% 1.88%
Portfolio turnover rate......... 16.02% 21.37% 10.35% 9.65% 8.58% 25.82% 35.47% 28.90% 22.13% 34.40%
</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.
INVESTMENT The fund's investment objective is to achieve long-term
OBJECTIVE AND growth of capital by investing in securities of issuers
POLICIES domiciled outside the U.S. Under normal market
conditions, the fund seeks to achieve this investment
The fund's goal is objective by investing primarily (at least 65% of its
to provide you assets) in equity securities of issuers domiciled in
with long-term Europe or the Pacific Basin. The Pacific Basin is
growth of capital generally defined as those countries bordering the
by investing in Pacific Ocean and includes, but is not limited to,
securities of Australia, Canada, Japan, Malaysia, and Singapore. The
issuers domiciled assets of the fund will be invested with geographic
outside the U.S. flexibility; accordingly, investments may be made from
time to time in issuers domiciled in, or governments of,
developing countries. The fund's investment adviser,
Capital Research and Management Company, currently does
not intend to invest more than 20% of the fund's total
assets (taken at cost) in securities of issuers
domiciled in, or governments of, developing countries.
See "Certain Securities and Investment Techniques--
Investing Around the World."
3
<PAGE>
- -------------------------------------------------------------------------------
The fund may also invest in securities through
depositary receipts which may be denominated in various
currencies. For example, the fund may purchase American
Depositary Receipts which are U.S. dollar denominated
securities designed for use in the U.S. securities
markets which represent and may be converted to the
underlying security.
The fund may also invest in securities convertible into
common stocks, straight debt securities (generally
rated in the top three quality categories by Moody's
Investors Service, Inc. or Standard & Poor's
Corporation, or determined to be of equivalent quality
by Capital Research and Management Company), government
securities, or nonconvertible preferred stocks. In
addition, up to 5% of the fund's assets may be invested
in lower rated straight debt securities (including
securities commonly referred to as "junk" or "high-
yield, high-risk" bonds) or in unrated securities that
are determined to be of equivalent quality. High-yield,
high-risk bonds carry a higher degree of investment
risk and are considered speculative. For example, bonds
rated Ca or CC are described as "speculative in a high
degree; often in default or hav[ing] other marked
shortcomings." These securities will also be issued by
non-U.S. entities. The fund may hold a portion of its
assets in U.S. dollars and other currencies and in cash
equivalents of either U.S. or non-U.S. issuers. (See
the statement of additional information for a
description of cash equivalents.)
The fund's investment restrictions (which are described
in the statement of additional information) and
objective cannot be changed without shareholder
approval. All other investment practices may be changed
by the board of trustees.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVE CANNOT,
OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL LOSS
FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT IN
SECURITIES AND THE SPECIAL RISKS ASSOCIATED WITH
INVESTING OUTSIDE THE U.S. DESCRIBED HEREIN.
CERTAIN SECURITIES INVESTING AROUND THE WORLD The fund's assets are
ANDINVESTMENT invested in securities of issuers domiciled outside the
TECHNIQUES United States which, in the opinion of Capital Research
and Management Company, enhances the fund's ability to
Investing outside meet its objective of long-term growth of capital.
the U.S. involves Of course, investing outside the U.S. involves special
expanded risks caused by, among other things: fluctuating
opportunities, currency values; different accounting, auditing, and
special risks and financial reporting regulations and practices in some
increased costs. countries; changing local and regional economic,
political, and social conditions; differing securities
market structures; and various administrative
difficulties such as delays in clearing and settling
portfolio transactions or in receiving payment of
dividends. However, in the opinion of Capital Research
and Management Company, investing outside the U.S. also
can reduce certain portfolio risks due to greater
diversification opportunities.
4
<PAGE>
- -------------------------------------------------------------------------------
Although there is no universally accepted definition, a
developing country is generally considered to be a
country which is in the initial stages of its industri-
alization cycle with a low per capita gross national
product. Historical experience indicates that the mar-
kets of developing countries have been more volatile
than the markets of developed countries and will in-
volve each of the risks described above, although po-
tentially to a greater degree.
Additional costs could be incurred in connection with
the fund's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the fund will bear certain expenses in
connection with its currency transactions. Furthermore,
increased custodian costs may be associated with the
maintenance of assets in certain jurisdictions.
CURRENCY TRANSACTIONS The fund has the ability to hold
a portion of its assets in U.S. dollars and other
currencies. The fund may also enter into forward
exchange contracts and forward currency contracts in
connection with investing in non-U.S. dollar
denominated securities. Foreign exchange contracts are
used to facilitate settlements of trades. Forward
currency contracts are used to hedge against changes in
currency exchange rates relative to the U.S. dollar.
There is no assurance that the use of currency
contracts will be successful. Moreover, due to the
expenses and risks involved, the fund will not
generally attempt to protect against all potential
changes in exchange rates. For additional information,
see "Currency Transactions" in the statement of
additional information.
RULE 144A SECURITIES Normally, securities acquired in
U.S. private placements are subject to contractual re-
strictions on resale and may not be resold except pur-
suant to a registration statement under the Securities
Act of 1933 or in reliance upon an exemption from the
registration requirements under that Act, for example,
private placements sold pursuant to Rule 144A. Accord-
ingly, any such obligation will be deemed illiquid (un-
less procedures for determining liquidity are adopted
by the fund's board of trustees), and the fund may in-
cur certain additional costs in disposing of such secu-
rities. The fund will not invest more than 5% of the
value of its total assets in restricted securities.
Non-U.S. securities that can be freely traded in a
securities market outside the U.S. are excluded from
this limitation. (See the statement of additional
information.)
MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments which are managed by individual counselors.
Each counselor decides how the segment will be invested
(within the limits provided by the fund's objectives
and policies and by Capital Research and Management
Company's investment
5
<PAGE>
- -------------------------------------------------------------------------------
committee). In addition, Capital Research and
Management Company's research professionals make
investment decisions with respect to a portion of the
fund's portfolio. The primary individual portfolio
counselors for the fund are listed below.
<TABLE>
<CAPTION>
YEARS OF EXPERIENCE
AS INVESTMENT PROFESSIONAL
(APPROXIMATE)
WITH CAPITAL
RESEARCH AND
PORTFOLIO YEARS OF EXPERIENCE AS MANAGEMENT
COUNSELORS FOR PORTFOLIO COUNSELOR FOR COMPANY OR
EUROPACIFIC GROWTH EUROPACIFIC GROWTH FUND ITS TOTAL
FUND PRIMARY TITLE(S) (APPROXIMATE) AFFILIATES YEARS
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Thierry Vandeventer Trustee and President Since the fund began 32 years 32 years
of the fund. Chairman operations in 1984
of the Board, Capital
Research Company*
- --------------------------------------------------------------------------------------------
Stephen E. Bepler Executive Vice Since the fund began 23 years 29 years
President of the operations
fund. Senior Vice in 1984
President and
Director, Capital
Research Company*
- --------------------------------------------------------------------------------------------
Janet A. McKinley Vice President of the 5 years (in addition 13 years 19 years
fund. Senior Vice to 5 years as a
President, Capital research professional
Research Company* prior to becoming a
portfolio counselor
for the fund)
- --------------------------------------------------------------------------------------------
Mark E. Denning Vice President of the 4 years (in addition 13 years 13 years
fund. Senior Vice to 3 years as a
President, Capital research professional
Research Company* prior to becoming a
portfolio counselor
for the fund)
- --------------------------------------------------------------------------------------------
</TABLE>
* COMPANY AFFILIATED WITH CAPITAL RESEARCH AND MANAGEMENT COMPANY.
INVESTMENT RESULTS The fund may from time to time compare its investment
results to various unmanaged indices or other mutual
The fund has funds in reports to shareholders, sales literature and
averaged a total advertisements. The results may be calculated on a
return of 16.02% a total return and/or yield basis for various periods,
year (at no sales with or without sales charges. Results calculated
charge) without a sales charge will be higher. Total returns
over its lifetime assume the reinvestment of all dividends and capital
(April 16, 1984 gain distributions.
through March 31,
1995). The fund's total return over the past 12 months and
average annual total returns over the past five-year
and ten-year periods as of March 31, 1995, were 0.71%,
10.79% and 17.05%, respectively. These results were
calculated in accordance with Securities and Exchange
Commission requirements with no sales charge. Of
course, past results are not an indication of future
results. Further information regarding the fund's
investment results is contained in the fund's annual
report which may be obtained without charge by writing
to the Secretary of the fund at the address indicated
on the cover of this prospectus.
6
<PAGE>
- -------------------------------------------------------------------------------
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS AND in June and December. All capital gains, if any, are
TAXES distributed annually, usually in December. When a
dividend or capital gain is distributed, the net asset
value per share is reduced by the amount of the
payment.
Income FEDERAL TAXES The fund intends to operate as a
distributions are "regulated investment company" under the Internal
usually made in Revenue Code. In any fiscal year in which the fund so
June and December. qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax. The tax
treatment of redemptions from a retirement plan may
differ from redemptions from an ordinary shareholder
account.
The fund may be required to pay withholding and other
taxes imposed by various countries in connection with
its investments outside the U.S. generally at rates
from 10% to 40%, which would reduce the fund's
investment income.
This is a brief summary of some of the tax laws that
affect your investment in the fund. Please see the
statement of additional information and your tax
adviser for further information.
FUND ORGANIZATION FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
AND MANAGEMENT end diversified management investment company, was
organized as a Massachusetts business trust in 1983.
The fund is a The fund's board supervises fund operations and
member of The performs duties required by applicable state and
American Funds federal law. Members of the board who are not employed
Group, which is by Capital Research and Management Company or its
managed by one of affiliates are paid certain fees for services rendered
the largest and to the fund as described in the statement of additional
most experienced information. They may elect to defer all or a portion
investment of these fees through a deferred compensation plan in
advisers. effect for the fund. All shareholders have one vote per
share owned, and at the request of holders of at least
10% of the shares, the fund will hold a meeting at
which any member of the board could be removed and a
successor elected. There will not usually be a
shareholder meeting in any year except, for example,
when the election of the board is required to be acted
upon by shareholders under the Investment Company Act
of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. Capital Research and
Management Company
7
<PAGE>
- -------------------------------------------------------------------------------
manages the investment portfolio and business affairs
of the fund and receives a fee at the annual rate of
0.69% on the first $500 million of the fund's average
net assets, plus 0.59% on such assets in excess of $500
million but less than $1 billion, plus 0.53% on such
assets in excess of $1 billion but less than $1.5
billion, plus 0.50% on such assets in excess of $1.5
billion but less than $2.5 billion, plus 0.48% on such
assets in excess of $2.5 billion but less than $4
billion, plus 0.47% on such assets in excess of $4
billion but less than $6.5 billion, plus 0.465% on such
assets in excess of $6.5 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors is located
at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92621, 8000 IH-
10 West, San Antonio, TX 78230, 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240 and 5300 Robin Hood
Road, Norfolk, VA 23513. Telephone conversations with
American Funds Distributors may be
8
<PAGE>
- -------------------------------------------------------------------------------
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan is in effect. Expenditures by the fund under
the plan may not exceed 0.25% of its average net assets
annually (0.25% of which may be for service fees).
TRANSFER AGENT American Funds Service Company,
800/421-0180 a wholly owned subsidiary of Capital
Research and Management Company, is the transfer agent
and performs shareholder service functions. American
Funds Service Company is located at 333 South Hope
Street, Los Angeles, CA 90071, 135 South State College
Boulevard, Brea, CA 92621, 8000 1H-10 West, San
Antonio, TX 78230, 8332 Woodfield Crossing Boulevard,
Indianapolis, IN 46240, and 5300 Robin Hood Road,
Norfolk, VA 23513. It was paid a fee of $8,186,000 for
the fiscal year ended March 31, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
PURCHASING SHARES ALL ORDERS TO PURCHASE SHARES MUST BE MADE THROUGH YOUR
RETIREMENT PLAN. FOR MORE INFORMATION ABOUT HOW TO PUR-
CHASE SHARES OF THE COMPANY THROUGH YOUR EMPLOYER'S
PLAN OR LIMITATIONS ON THE AMOUNT THAT MAY BE PUR-
CHASED, PLEASE CONSULT WITH YOUR EMPLOYER. Shares are
sold to eligible retirement plans at the net asset
value per share next determined after receipt of an or-
der by the fund or American Funds Service Company. Or-
ders must be received before the close of regular trad-
ing on the New York Stock Exchange in order to receive
that day's net asset value. Plans of organizations with
collective retirement plan assets of $100 million or
more may purchase shares at net asset value. In addi-
tion, any defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees or
any other plan that invests at least $1 million in
shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the
money market funds) may purchase shares at net asset
value; however, a contingent deferred sales charge of
1% is imposed on certain redemptions within one year of
such purchase. (See "Redeeming Shares-- Contingent De-
ferred Sales Charge.") Plans may also qualify to pur-
chase $1 million over a maximum of 13 consecutive
months. Certain redemptions of such shares may also be
subject to a contingent deferred sales charge as de-
scribed above. (See the statement of additional infor-
mation.)
American Funds Distributors, at its expense (from a
designated percentage of its income), will provide ad-
ditional promotional incentives to dealers. Currently
these incentives are limited to the top one hundred
dealers who have sold shares of the fund or other funds
in The American Funds Group. The incentive payments
will be based on a pro rata share of a qualifying deal-
er's sales.
9
<PAGE>
- -------------------------------------------------------------------------------
Qualified dealers currently are paid a continuing serv-
ice fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to compensate
them for providing certain services. (See "Fund Organi-
zation and Management--Plan of Distribution.") These
services include processing purchase and redemption
transactions, establishing shareholder accounts and
providing certain information and assistance with re-
spect to the fund.
Shares of the fund are offered to other shareholders
pursuant to another prospectus at public offering
prices that may include an initial sales charge.
SHARE PRICE Shares are offered to eligible retirement
plans at the net asset value after the order is
received by the fund or American Funds Service Company.
In the case of orders sent directly to the company or
American Funds Service Company, an investment dealer
MUST be indicated. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The fund's net asset value per share is determined as
of the close of trading (currently 4:00 p.m., New York
time) on each day the New York Stock Exchange is open.
The current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share.
SHAREHOLDER Subject to any restrictions contained in your plan, you
SERVICES can exchange your shares for shares of other funds in
The American Funds Group which are offered through the
plan at net asset value. In addition, again depending
on any restrictions in your plan, you may be able to
exchange shares automatically or cross-reinvest
dividends in shares of other funds. Contact your plan
administrator/trustee regarding how to use these
services. Also, see the fund's statement of additional
information for a description of these and other
services that may be available through your plan. These
services are available only in states where the fund to
be purchased may be legally offered and may be
terminated or modified at any time upon 60 days'
written notice.
10
<PAGE>
- -------------------------------------------------------------------------------
REDEEMING Subject to any restrictions imposed by your employer's
SHARES plan, you can sell your shares through the plan to the
fund any day the New York Stock Exchange is open. For
more information about how to sell shares of the fund
through your retirement plan, including any charges
that may be imposed by the plan, please consult with
your employer.
By contacting Your plan administrator/trustee must
your plan send a letter of instruction
administrator/ specifying the name of the fund, the
trustee number of shares or dollar amount to
be sold, and, if applicable, your
name and account number. For your
protection, if you redeem more than
$50,000, the signatures of the
registered owners (i.e., trustees or
their legal representatives) must be
guaranteed by a bank, savings
association, credit union, or member
firm of a domestic stock exchange or
the National Association of
Securities Dealers, Inc., that is an
eligible guarantor institution. Your
plan administrator/trustee should
verify with the institution that it
is an eligible guarantor prior to
signing. Additional documentation may
be required to redeem shares from
certain accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
--------------------------------------------------------
By contacting Shares may also be redeemed through
your an investment dealer; however you or
investment your plan may be charged for this
dealer service. SHARES HELD FOR YOU IN AN
INVESTMENT DEALER'S STREET NAME MUST
BE REDEEMED THROUGH THE DEALER.
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees. The
charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be
redeemed first for purposes of calculating this charge.
The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12
months of the initial purchase); for distributions from
qualified retirement plans and other employee benefit
plans; and for redemptions in connection with loans
made by qualified retirement plans.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because the fund's
net asset value fluctuates, reflecting the market value
of the fund's portfolio, the amount you receive for
shares redeemed may be more or less than the amount
paid for them.
11
<PAGE>
- -------------------------------------------------------------------------------
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
[LOGO OF RECYCLED This prospectus has been
PAPER] printed on recycled paper that
meets the guidelines of the
United States Environmental
Protection Agency.
This prospectus relates only to shares of the fund
offered without a sales charge to eligible
retirement plans. For a prospectus regarding shares
of the fund to be acquired otherwise, contact the
Secretary of the fund at the address indicated on
the front.
12
EUROPACIFIC GROWTH FUND
Part B
Statement of Additional Information
JUNE 1, 1995
This document is not a prospectus but should be read in conjunction with the
current Prospectus of EuroPacific Growth Fund (the "fund" or "EUPAC") dated
June 1, 1995. The Prospectus may be obtained from your investment dealer or
financial planner or by writing to the fund at the following address:
EuroPacific Growth Fund
Attention: Secretary
333 South Hope Street
Los Angeles, CA 90071
(213) 486-9200
The fund has two forms of prospectuses. Each reference to the prospectus
in this Statement of Additional Information includes both of the fund's
prospectuses. Shareholders who purchase shares at net asset value through
eligible retirement plans should note that not all of the services or features
described below may be available to them, and they should contact their
employer for details.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ITEM PAGE NO.
<S> <C>
INVESTMENT POLICIES 2
CERTAIN RISK FACTORS RELATING TO BELOW INVESTMENT GRADE BONDS 3
INVESTMENT RESTRICTIONS 3
FUND TRUSTEES AND OFFICERS 6
MANAGEMENT . 11
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES. 13
PURCHASE OF SHARES 16
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES 18
REDEMPTION OF SHARES 19
EXECUTION OF PORTFOLIO TRANSACTIONS 19
GENERAL INFORMATION 19
INVESTMENT RESULTS 21
DESCRIPTION OF BOND RATINGS 25
FINANCIAL STATEMENTS ATTACHED
</TABLE>
INVESTMENT POLICIES
The fund's investment objective is to achieve long-term growth of capital by
investing in securities of issuers domiciled outside the U.S. In determining
the domicile of an issuer, Capital Research and Management Company (the
"Investment Adviser") takes into account such factors as where the company is
legally organized and/or maintains principal corporate offices and/or conducts
its principal operations.
CASH EQUIVALENTS - These securities include (1) commercial paper (short-term
notes up to 9 months in maturity issued by corporations or governmental
bodies), (2) commercial bank obligations (certificates of deposit, bankers'
acceptances (time drafts on a commercial bank where the bank accepts an
irrevocable obligation to pay at maturity) and documented discount notes
(corporate promissory discount notes accompanied by a commercial bank guarantee
to pay at maturity)), (3) savings association and state chartered savings bank
obligations (e.g., certificates of deposit issued by savings banks or savings
and loan associations), (4) securities of the U.S. Government, its agencies or
instrumentalities that mature, or may be redeemed, in one year or less, and (5)
corporate bonds and notes that mature, or that may be redeemed, in one year or
less.
REPURCHASE AGREEMENTS -- The fund may enter into repurchase agreements, under
which the fund buys a security and obtains a simultaneous commitment from the
seller to repurchase the security at a specified time and price. Repurchase
agreements permit the fund to maintain liquidity and earn income over periods
of time as short as overnight. The seller must maintain with the fund's
custodian collateral equal to at least 100% of the repurchase price including
accrued interest, as monitored daily by Capital Research and Management
Company. See "Management" below. The fund only will enter into repurchase
agreements involving securities in which it could otherwise invest and with
selected banks and securities dealers whose financial condition is monitored by
the Investment Adviser. If the seller under the repurchase agreement defaults,
the fund may incur a loss if the value of the collateral securing the
repurchase agreement has declined and may incur disposition costs in connection
with liquidating the collateral. If bankruptcy proceedings are commenced with
respect to the seller, realization upon the collateral by the fund may be
delayed or limited.
CURRENCY TRANSACTIONS - The fund has the ability to hold a portion of its
assets in U.S. dollars and other currencies and to enter into certain currency
contracts (on either a spot or forward basis) in connection with investing in
non-U.S. dollar denominated securities including foreign currency exchange and
forward currency contracts. A foreign exchange contract is used to facilitate
settlement of trades. For example, the fund might purchase a currency or enter
into a foreign exchange contract to preserve the U.S. dollar price of
securities it has contracted to purchase. A forward currency contract is an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. For example, the fund
might enter into a forward currency contract to protect against an anticipated
decline in value of a foreign currency against the U.S. dollar when it holds
securities denominated in that foreign currency. To avoid having an amount
greater than its net assets subject to market risk in connection with currency
contract transactions, the fund will segregate cash, cash equivalents, or high
quality debt instruments to the extent required by the Securities and Exchange
Commission.
144A SECURITIES - Normally, securities acquired in U.S. private placements
are subject to contractual restrictions on resale and may not be resold except
pursuant to a registration statement under the Securities Act of 1933 or in
reliance upon an exemption from the registration requirements under the Act,
for example, private placements sold pursuant to Rule 144A. Accordingly, any
such obligation will be deemed illiquid (unless procedures for determining
liquidity are adopted by the fund's board of trustees), and the fund may incur
certain additional costs in disposing of such securities.
The fund will not invest more than 5% of the value of its total assets in
securities which are subject to contractual restrictions on resale. Non-U.S.
securities that can be freely traded in a foreign securities market and for
which the facts and circumstances support a finding of liquidity are not
included for the purposes of this limitation.
CERTAIN RISK FACTORS RELATING TO BELOW INVESTMENT GRADE BONDS
Certain risk factors relating to investing in below investment grade
securities ("high-yield, high-risk bonds") are discussed below.
SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES - High-yield, high-risk bonds
are very sensitive to adverse economic changes and corporate developments.
During an economic downturn or substantial period of rising interest rates,
highly leveraged issuers may experience financial stress that would adversely
affect their ability to service their principal and interest payment
obligations, to meet projected business goals, and to obtain additional
financing. If the issuer of a bond defaulted on its obligations to pay
interest or principal or entered into bankruptcy proceedings, the fund may
incur losses or expenses in seeking recovery of amounts owed to it. In
addition, periods of economic uncertainty and changes can be expected to result
in increased volatility of market prices of high-yield, high-risk bonds.
PAYMENT EXPECTATIONS - High-yield, high-risk bonds, like other bonds, may
contain redemption or call provisions. If an issuer exercised these provisions
in a declining interest rate market, the fund would have to replace the
security with a lower yielding security, resulting in a decreased return for
investors. Conversely, a high-yield, high-risk bond's value will decrease in a
rising interest rate market, as it will with all bonds.
LIQUIDITY AND VALUATION - There may be little trading in the secondary market
for particular bonds, which may affect adversely the fund's ability to value
accurately or dispose of such bonds. Adverse publicity and investor
perceptions, whether or not based on fundamental analysis, may decrease the
values and liquidity of high-yield, high-risk bonds, especially in a thin
market.
If, as a result of a downgrade or otherwise, the fund holds more than 5% of
its net assets in high-yield, high-risk bonds, the fund will dispose of the
excess as expeditiously as possible.
INVESTMENT RESTRICTIONS
The fund has adopted certain investment restrictions which may not be changed
without a majority vote of its outstanding shares. Such majority is defined by
the Investment Company Act of 1940 (the "1940 Act") as the vote of the lesser
of (i) 67% or more of the outstanding voting securities present at a meeting,
if the holders of more than 50% of the outstanding voting securities are
present in person or by proxy, or (ii) more than 50% of the outstanding voting
securities. All percentage limitations expressed in the following investment
restrictions are measured immediately after and giving effect to the relevant
transaction. The fund may not:
1. Invest in securities of another issuer (other than the U.S. government or
its agencies or instrumentalities), if immediately after and as a result of
such investment more than 5% of the value of the total assets would be invested
in the securities of such other issuer (except with respect to 25% of the value
of the total assets, the fund may exceed the 5% limitation with regards to
investments in the securities of any one foreign government);
2. Invest in companies for the purpose of exercising control or management;
3. Invest more than 25% of the value of its total assets in the securities of
companies primarily engaged in any one industry;
4. Invest more than 5% of its total assets in the securities of other
investment companies; such investments shall be limited to 3% of the voting
stock of any investment provided, however, that investment in the open market
of a closed-end investment company where no more than customary brokers'
commissions are involved and investment in connection with a merger,
consolidation, acquisition or reorganization shall not be prohibited by this
restriction;
5. Buy or sell real estate in the ordinary course of its business; however,
the fund may invest in securities secured by real estate or interests therein
or issued by companies, including real estate investment trusts and funds,
which invest in real estate or interests therein;
6. Buy or sell commodities or commodity contracts in the ordinary course of
its business provided, however, that the entering into of a foreign currency
contract shall not be prohibited by this restriction;
7. Invest more than 10% of the value of its total assets in securities which
are not readily marketable or more than 5% of the value of its total assets in
securities which are subject to legal or contractual restrictions on resale
(except repurchase agreements) or engage in the business of underwriting of
securities of other issuers, except to the extent that the disposal of an
investment position may technically constitute the fund an underwriter as that
term is defined under the Securities Act of 1933. The fund may buy and sell
securities outside the U.S. which are not registered with the Securities and
Exchange Commission or marketable in the U.S. without regard to this
restriction. The fund may not enter into any repurchase agreement if, as a
result, more than 10% of total assets would be subject to repurchase
agreements maturing in more than seven days. (See "Repurchase Agreements"
above);
8. Lend any of its assets; provided, however that entering into repurchase
agreements, investment in government obligations, publicly traded bonds,
debentures, other debt securities or in cash equivalents such as short term
commercial paper, certificates of deposit, or bankers acceptances, shall not be
prohibited by this restriction;
9. Sell securities short except to the extent that the fund contemporaneously
owns or has the right to acquire at no additional cost, securities identical to
those sold short;
10. Purchase securities on margin;
11. Borrow amounts in excess of 5% of the value of its total assets or issue
senior securities. In any event, the fund may borrow only as a temporary
measure for extraordinary or emergency purposes and not for investment in
securities;
12. Mortgage, pledge or hypothecate its total assets to any extent;
13. Purchase or retain the securities of any issuer, if those individual
officers and trustees of the fund, its investment adviser or principal
underwriter, each owning beneficially more than 1/2 of 1% of the securities of
such issuer, together own more than 5% of the securities of such issuer;
14. Invest more than 5% of the value of its total assets in securities of
companies having, together with their predecessors, a record of less than three
years of continuous operation;
15. Invest in puts, calls, straddles or spreads, or combinations thereof; nor
16. Purchase partnership interests in oil, gas, or mineral exploration,
drilling or mining ventures.
As to 75% of the fund's total assets, investments in any one issuer will be
limited to no more than 10% of the voting securities of such issuer. This is a
non-fundamental policy which may be modified by the Board of Trustees without
shareholder approval.
FUND TRUSTEES AND OFFICERS
TRUSTEES AND TRUSTEE COMPENSATION
(with their principal occupations during the past five years)#
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE POSITION WITH PRINCIPAL OCCUPATION(S) DURING PAST AGGREGATE COMPENSATION TOTAL COMPENSATION FROM
TOTAL NUMBER
REGISTRANT 5 YEARS (POSITIONS WITHIN THE (INCLUDING VOLUNTARILY ALL FUNDS MANAGED BY OF FUND
BOARDS
ORGANIZATIONS LISTED MAY HAVE DEFERRED COMPENSATION/1/) CAPITAL RESEARCH AND ON
WHICH
CHANGED DURING THIS PERIOD) FROM THE COMPANY MANAGEMENT COMPANY/2/ DIRECTOR SERVES
DURING FISCAL YEAR ENDED
3/31/95
<S> <C> <C> <C> <C> <C>
Elisabeth Allison Trustee Former Senior Vice President, $17,750 $35,250 2
62 West 62nd Street Planning and Development,
New York, NY McGraw Hill, Inc.
10023
Age: 48
+ David I. Fisher Trustee Chairman of the Board, None None 2
333 South Hope The Capital Group Companies, Inc.
Street
Los Angeles, CA
90072
Age: 55
Robert A. Fox Trustee President and Chief Executive Officer, $16,650 $74,250 5
P.O Box 457 Foster Farms, Inc.; Former President,
Livingston, CA Revlon International; former
95334 Chairman and Chief Executive
Age: 58 Officer, Clarke Hooper America
(advertising)
Alan Greenway Trustee President, Greenway Associates, Inc. $17,900 $60,533 4
7413 Fairway Road (management consulting services)
La Jolla, CA 92037
Age: 67
+ William R. Grimsley Trustee Senior Vice President and Director, None None 3
P.O. Box 7650 Capital Research and Management
San Francisco, CA Company
94111
Age: 57
Koichi Itoh Trustee Managing Partner, $15,800 $21,800 2
7-14-11-104 VENCA Management
Minami Aoyama (venture capital)
Minato-ku, Tokyo,
Japan
Age: 54
William H. Kling Trustee President, Minnesota Public Radio; $16,700 $63,533 4
45 East Seventh President, Greenspring Co.; former
Street President, American Public Radio
St. Paul, MN 55101 (now Public Radio International)
Age: 53
John G. McDonald Trustee The IBJ Professor of Finance, $15,817 $128,717 7
Graduate School of Graduate School of Business,
Business Stanford University
Stanford University
Stanford, CA 94305
Age: 58
William I. Miller Trustee Chairman of the Board, $16,450 $33,550 2
500 Washington Irwin Financial Corporation
Street
Box 929
Columbus, IN
47202
Age: 39
Donald E. Petersen Trustee Former Chairman of the Board and N/A 30550 4
222 East Brown, Chief Executive Officer, Ford Motor
Suite 460 Company
Birmingham, MI
48009
Age: 68
+ Walter P. Stern Chairman of Chairman, Capital Group International, None None 8
630 Fifth Avenue the Board Inc.; Vice Chairman, Capital Research
New York, NY International; Director, The Capital
10111 Group Companies, Inc.; Chairman,
Age: 66 Capital International, Inc.; Director,
Temple-Inland Inc. (forest products)
+ Thierry Vandeventer President Chairman of the Board, Capital None None 2
3 Place des Bergues Research Company
1201 Geneva,
Switzerland
Age: 59
</TABLE>
# Positions within the organizations may have changed during this period.
+ Trustees who are considered "interested persons as defined in the Investment
Company Act of 1940, as amended (the "1940 Act"), on the basis of their
affiliation with the fund's Investment Adviser, Capital Research and Management
Company.
/1/ Amounts may be deferred by eligible trustees under a non-qualified
deferred compensation plan adopted by the fund in 1993. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more of
the funds in the American Funds Group as designated by the trustee.
/2/ Capital Research and Management Company manages The American Funds Group
consisting of 28 funds: AMCAP Fund, American Balanced Fund, Inc., American
High-Income Municipal Bond Fund, Inc., American High-Income Trust, American
Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash Management Trust of
America, Capital Income Builder, Inc., Capital World Growth and Income Fund,
Inc., Capital World Bond Fund, Inc., EuroPacific Growth Fund, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America.
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Fund of California, The Tax-Exempt Fund of
Maryland, The Tax-Exempt Fund of Virginia, The Tax-Exempt Money Fund of
America, The U.S. Treasury Money Fund of America, U.S. Government Securities
Fund and Washington Mutual Investors Fund, Inc. Capital Research and
Management Company also manages American Variable Insurance Series and Anchor
Pathway Fund which serve as the underlying investment vehicles for certain
variable insurance contracts.
OFFICERS
(with their principal occupations during the past five years)#
WALTER P. STERN, Chairman of the Board (see above).
THIERRY VANDEVENTER, President (see above).
STEPHEN E. BEPLER, Executive Vice President. 630 Fifth Avenue, New York, NY,
10111.
Senior Vice President and Director, Capital Research International.
JANET A. MCKINLEY, Vice President. 630 Fifth Avenue, New York, NY, 10111.
Senior Vice President, Capital Research Company.
WILLIAM R. GRIMSLEY, Vice President (see above).
** STEVEN N. KEARSLEY, Treasurer.
Vice President and Treasurer, Capital Research and Management Company.
* VINCENT P. CORTI, Secretary.
Vice President - Fund Business Management Group, Capital Research and
Management Company.
** MARY C. CREMIN, Assistant Treasurer.
Senior Vice President - Fund Business Management Group, Capital Research and
Management Company.
** R. MARCIA GOULD, Assistant Treasurer.
Vice President - Fund Business Management Group, Capital Research and
Management Company
_________________________
# Positions within the organizations listed may have changed during this
period.
* Address is 333 South Hope Street, Los Angeles, CA 90071.
** Address is 135 South State College Boulevard, Brea, CA 92621.
All of the Trustees and officers are also officers and/or directors and/or
trustees of one or more of the other funds for which Capital Research and
Management Company serves as Investment Adviser. No compensation is paid by
the fund to any officer or Trustee who is a director, officer or employee of
the Investment Adviser or affiliated companies. The compensation paid by the
fund to unaffiliated Trustees is $9,000 per annum, plus $750 for each Board of
Trustees meeting attended, plus $400 for each meeting attended as a member of a
committee of the Board of Trustees. The Trustees may elect, on a voluntary
basis, to defer all or a portion of their fees through a deferred compensation
plan in effect for the fund. The fund also reimburses certain expenses of the
Trustees who are not affiliated with the Investment Adviser. The total
compensation paid by the fund to unaffiliated Trustees during the fiscal year
ended March 31, 1995 was $ 137,125. As of May 1, 1995 the officers and
Trustees of the fund and their families as a group owned beneficially or of
record less than 1% of the outstanding shares of the fund.
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad, with a staff of professionals, many
of whom have a number of years of investment experience. The Investment
Adviser's research professionals travel several million miles a year, making
more than 5,000 research visits in more than 50 countries around the world.
The Investment Adviser believes that it is able to attract and retain quality
personnel.
An affiliate of the Investment Adviser compiles indices for major stock
markets around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
The Investment Adviser is responsible for approximately $100 billion of
stocks, bonds and money market instruments and serves over five million
investors of all types throughout the world. These investors include privately
owned businesses and large corporations, as well as schools, colleges,
foundations and other non-profit and tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and Service
Agreement (the "Agreement") between the fund and the Investment Adviser, unless
sooner terminated, will continue until March 31, 1995 and may be renewed from
year to year thereafter, provided that any such renewal has been specifically
approved at least annually by (i) the Board of Trustees, or by the vote of a
majority (as defined in the 1940 Act) of the outstanding voting securities, and
(ii) the vote of a majority of Trustees who are not parties to the Agreement or
interested persons (as defined in the 1940 Act) of any such party, cast in
person at a meeting called for the purpose of voting on such approval. The
Agreement provides that the Investment Adviser has no liability to the fund for
its acts or omissions in the performance of its obligations to the fund not
involving willful misconduct, bad faith, gross negligence or reckless disregard
of its obligations under the Agreement. The Agreement also provides that
either party has the right to terminate it, without penalty, upon 60 days'
written notice to the other party and that the Agreement automatically
terminates in the event of its assignment (as defined in the 1940 Act).
Under the Agreement, the Investment Adviser receives from the fund a
monthly fee calculated at the annual rate of 0.69% on the first $500 million
of average net assets, plus 0.59% on such assets in excess of $500 million but
less than $1 billion, plus 0.53% on such assets in excess of $1 billion but
less than $1.5 billion, plus 0.50% on such assets in excess of $1.5 billion but
less than $2.5 billion, plus 0.48% on such assets in excess of $2.5 billion but
less than $4 billion, plus 0.47% on such assets in excess of $4 billion but
less than $6.5 billion, plus 0.465% on such assets in excess of $6.5 billion.
The Investment Adviser, in addition to providing investment advisory services,
furnishes the services and pays the compensation and travel expenses of
qualified persons to perform executive, administrative, clerical and
bookkeeping functions of the fund; provides suitable office space and
utilities; and provides necessary small office equipment and general purpose
accounting forms, supplies, and postage used at the offices of the fund
relating to the services furnished by the Investment Adviser.
The fund pays all expenses not specifically assumed by the Investment Adviser,
including, but not limited to, custodian, stock transfer and dividend
disbursing fees and expenses; expenses pursuant to the fund's Plan of
Distribution (described below); costs of designing, printing and mailing
reports, prospectuses, proxy statements and notices to shareholders; taxes;
expenses of the issuance, sale, redemption, or repurchase of shares of the fund
(including stock certificates, registration and qualification fees and
expenses); legal and auditing fees and expenses; compensation, fees, and
expenses paid to Trustees not affiliated with the Investment Adviser;
association dues; and costs of stationery and forms prepared exclusively for
the fund.
The Investment Adviser will reimburse the fund to the extent that the fund's
annual operating expenses, exclusive of taxes, interest, brokerage costs,
distribution expenses and extraordinary expenses such as litigation and
acquisitions, exceed the expense limitations applicable to the fund imposed by
state securities laws or any regulations thereunder. Only one state
(California) continues to impose expense limitations on funds registered for
sale therein. The California provision currently limits annual expenses to the
sum of 2-1/2% of the first $30 million of average net assets, 2% of the next
$70 million and 1-1/2% of the remaining average net assets. Rule 12b-1
distribution plan expenses would be excluded from this limit. Expenditures,
including costs incurred in connection with the purchase or sale of portfolio
securities, which are capitalized in accordance with generally accepted
accounting principles applicable to investment companies, are accounted for as
capital items and not as expenses. The fund might be eligible to exclude
certain additional expenses, such as expenses of maintaining foreign custody of
certain portfolio securities by obtaining a waiver of such limit from
California.
During the fiscal years ended March 31, 1995, 1994, and 1993 , the
Investment Adviser's total fees amounted to $38,787,000, $24,646,000, and
$14,183,000 , respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the "Principal
Underwriter") is the principal underwriter of the fund's shares. The fund has
adopted a Plan of Distribution (the "Plan"), pursuant to rule 12b-1 under the
1940 Act (see "Principal Underwriter" in the Prospectus). The Principal
Underwriter receives amounts payable pursuant to the Plan (see below) and
commissions consisting of that portion of the sales charge remaining after the
discounts which it allows to investment dealers. Commissions retained by the
Principal Underwriter on sales of fund shares during the fiscal year ended
March 31, 1995 amounted to $10,521,000 after allowance of $55,988,000 to
dealers. During the fiscal years ended March 31, 1994 and 1993 the Principal
Underwriter retained $11,218,000 and $4,911,000 and , respectively.
As required by rule 12b-1, the Plan (together with the Principal Underwriting
Agreement) has been approved by the full Board of Trustees and separately by a
majority of the Trustees who are not "interested persons" of the fund and who
have no direct or indirect financial interest in the operation of the Plan or
the Principal Underwriting Agreement, and the Plan has been approved by the
vote of a majority of the outstanding voting securities of the fund. The
officers and Trustees who are "interested persons" of the fund may be
considered to have a direct or indirect financial interest in the operation of
the Plan due to present or past affiliations with the Investment Adviser and
related companies. Potential benefits of the Plan to the fund include improved
shareholder services, savings to the fund in transfer agency costs, savings to
the fund in advisory fees and other expenses, benefits to the investment
process from growth or stability of assets and maintenance of a financially
healthy management organization. The selection and nomination of Trustees who
are not "interested persons" of the fund are committed to the discretion of the
Trustees who are not "interested persons" during the existence of the Plan.
The Plan is reviewed quarterly and must be renewed annually by the Board of
Trustees.
Under the Plan the fund may expend up to 0.25% of its average net assets
annually to finance any activity which is primarily intended to result in the
sale of fund shares, provided the fund's Board of Trustees has approved the
category of expenses for which payment is being made. These include service
fees for qualified dealers and dealer commissions and wholesaler compensation
on sales of shares exceeding $1 million. During the fiscal year ended March
31, 1995, the fund paid or accrued $17,580,000 under the Plan.
The Glass-Stegall Act and other applicable laws, among other things, generally
prohibit commercial banks from engaging in the business of underwriting,
selling or distributing securities, but permit banks to make shares of mutual
funds available to their customers and to perform administrative and
shareholder servicing functions. However, judicial or administrative decisions
or interpretations of such laws, as well as changes in either federal or state
statutes or regulations relating to the permissible activities of banks or
their subsidiaries of affiliates, could prevent a bank from continuing to
perform all or a part of its servicing activities. If a bank were prohibited
from so acting, shareholder clients of such bank would be permitted to remain
shareholders of the fund and alternate means for continuing the servicing of
such shareholders would be sought. In such event, changes in the operation of
the fund might occur and shareholders serviced by such bank might no longer be
able to avail themselves of any automatic investment or other services then
being provided by such bank. It is not expected that shareholders would suffer
with adverse financial consequences as a result of any of these occurrences.
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The fund intends to meet all the requirements and has elected the tax status
of a "regulated investment company" under the provisions of Subchapter M of the
Internal Revenue Code of 1986 (the Code). Under Subchapter M, if the fund
distributes within specified times at least 90% of the sum of its investment
company taxable income it will be taxed only on that portion, if any, of the
investment company taxable income that it retains.
To qualify, the fund must (a) derive at least 90% of its gross income from
dividends, interest, certain payments with respect to securities loans and
gains from the sale or other disposition of stock, securities, currencies or
other income derived with respect to its business of investing in such stock,
securities or currencies; (b) derive less than 30% of its gross income from the
sale or other disposition of stock or securities held for less than three
months; and (c) diversify its holdings so that at the end of each fiscal
quarter, (i) at least 50% of the market value of the fund's assets is
represented by cash, U.S. Government securities and other securities which must
be limited, in respect of any one issuer, to an amount not greater than 5% of
the fund's assets and 10% of the outstanding voting securities of such issuer,
and (ii) not more than 25% of the value of its assets is invested in the
securities of any one issuer (other than U.S. Government securities or the
securities of other regulated investment companies), or in two or more issuers
which the fund controls and which are engaged in the same or similar trades or
businesses or related trades or businesses.
Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gain net income (both long-term and
short-term) for the one-year period ending on October 31 (as though the
one-year period ending on October 31 were the regulated investment company's
taxable year), and (iii) the sum of any untaxed, undistributed net investment
income and net capital gains of the regulated investment company for prior
periods. The term "distributed amount" generally means the sum of (i) amounts
actually distributed by the fund from its current year's ordinary income and
capital gain net income and (ii) any amount on which the fund pays income tax
for the year. The fund intends, to the extent practicable, to meet these
distribution requirements to minimize or avoid the excise tax liability.
The fund also intends to distribute to shareholders all of the excess of net
long-term capital gain over net short-term capital loss on sales of securities.
If the net asset value of shares of the fund should, by reason of a
distribution of realized capital gains, be reduced below a shareholder's cost,
such distribution would to that extent be a return of capital to that
shareholder even though taxable to the shareholder, and a sale of shares by a
shareholder at net asset value at that time would establish a capital loss for
federal tax purposes.
Sales of forward currency contracts which are intended to hedge against a
change in the value of securities or currencies held by the fund may affect the
holding period of such securities or currencies and, consequently, the nature
of the gain or loss on such securities or currencies upon disposition.
It is anticipated that any net gain realized from the closing out of forward
currency contracts will be considered gain from the sale of securities or
currencies and therefore be qualifying income for purposes of the 90% of gross
income from qualified sources requirement, as discussed above. In order to
avoid realizing excessive gains on securities or currencies held less than
three months, the fund may be required to defer the closing out of a forward
currency contract beyond the time when it would otherwise be advantageous to do
so. It is anticipated that unrealized gains on forward currency contracts,
which have been open for less than three months as of the end of the fund's
fiscal year and which are recognized for tax purposes, will not be considered
gains on securities or currencies held less than three months for purposes of
the 30% test, as discussed above.
The amount of any realized gain or loss on closing out a forward currency
contracts such as a forward commitment for the purchase or sale of foreign
currency will generally result in ordinary income or loss for tax purposes.
Under Code Section 1256, forward currency contracts held by the fund at the end
of each fiscal year will be required to be "marked to market" for federal
income tax purposes, that is, deemed to have been sold at market value. Code
Section 988 may also apply to forward currency contracts. Under Section 988,
each foreign currency gain or loss is generally computed separately and treated
as ordinary income or loss. In the case of overlap between Sections 1256 and
988, special provisions determine the character and timing of any income, gain
or loss. The fund will attempt to monitor Section 988 transactions to avoid an
adverse tax impact.
The fund will distribute to shareholders annually any net long-term capital
gains which have been recognized for federal income tax purposes (including
unrealized gains at the end of the fund's fiscal year on forward currency
contract transactions). Such distributions will be combined with distributions
of capital gains realized on the fund's other investments.
If a shareholder exchanges or otherwise disposes of shares of the fund within
90 days of having acquired such shares, and if, as a result of having acquired
those shares, the shareholder subsequently pays a reduced sales charge for
shares of the fund, or of a different fund, the sales charge previously
incurred acquiring the fund's shares shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose of determining the amount of gain or loss on the
exchange, but will be treated as having been incurred in the acquisition of
such other shares. Also, any loss realized on a redemption or exchange of
shares of a fund will be disallowed to the extent shares are reacquired within
the 61-day period beginning 30 days before and ending 30 days after the shares
are disposed of.
Under the Code, the fund's taxable income for each year will be computed
without regard to any net foreign currency loss and net capital loss
attributable to transactions after October 31, and any such net foreign
currency loss and net capital loss will be treated as arising on the first day
of the following taxable year.
Dividends generally are taxable to shareholders at the time they are paid.
However, dividends declared in October, November and December and made payable
to shareholders of record in such a month are treated as paid and are thereby
taxable as of December 31, provided that the fund pays the dividend no later
than the end of January of the following year.
The fund may be required to pay withholding and other taxes imposed by foreign
countries generally at rates from 10% to 40% which would reduce the fund's
investment income. If more than 50% in value of the fund's total assets at the
close of its taxable year consists of securities of foreign issuers, the fund
will be eligible to file elections with the Internal Revenue Service pursuant
to which shareholders of the fund will be required to include their respective
pro rata portions of such withholding taxes in their federal income tax returns
as gross income, treat such amounts as foreign taxes paid by them, and deduct
such amounts in computing their taxable incomes or, alternatively, use them as
foreign tax credits against their federal income taxes. In any year the fund
makes such an election, shareholders will be notified as to the amount of
foreign withholding and other taxes paid by the fund.
As of the date of this statement of additional information, the maximum
federal individual stated tax rate applicable to ordinary income is 39.6%
(effective tax rates may be higher for some individuals due to phase out of
exemptions and elimination of deductions); the maximum individual tax rate
applicable to net capital gain is 28%; and the maximum corporate tax applicable
to ordinary income and net capital gain is 35%. Naturally, the amount of tax
payable by an individual will be affected by a combination of tax law rules
covering, E.G., deductions, credits, deferrals, exemptions, sources of income
and other matters. Under the Code, an individual is entitled to establish an
IRA each year (prior to the tax return filing deadline for that year) whereby
earnings on investments are tax-deferred. In addition, in some cases, the IRA
contribution itself may be deductible.
The foregoing is limited to a summary discussion of federal taxation and
should not be viewed as a comprehensive discussion of all provisions of the
Code relevant to investors. Dividends and capital gain distributions may also
be subject to state or local taxes. Shareholders should consult their own tax
advisers for additional details as to their particular tax status.
PURCHASE OF SHARES
PRICE OF SHARES - Purchases of shares are made at the offering price next
determined after the purchase order is received. This offering price is
effective for orders received by the fund or American Funds Service Company;
this offering price is effective for orders received prior to the time of
determination of the net asset value and, in the case of orders placed with
dealers, accepted by the Principal Underwriter prior to its close of business.
The dealer is responsible for promptly transmitting purchase orders to the
Principal Underwriter. Orders received by the investment dealer, the Transfer
Agent, or the fund after the time of the determination of the net asset value
will be entered at the next calculated offering price. Prices which appear in
the newspaper are not always indicative of prices at which you will be
purchasing and redeeming shares of the fund, since prices generally reflect the
previous day's closing price whereas purchases and redemptions are made at the
next calculated price.
The price you pay for shares, the offering price, is based on the net asset
value per share which is calculated once daily at the close of trading
(currently 4:00 p.m., New York Time) each day the New York Stock Exchange is
open. The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. The net
asset value per share is determined as follows:
1. Portfolio securities, including ADR's and EDR's, which are traded on stock
exchanges, are valued at the last sale price on the exchange on which such
securities are traded, as of the close of business on the day the securities
are being valued or, lacking any sales, at the last available bid price. In
cases where equity securities are traded on more than one exchange, the
securities are valued on the exchange determined by the officers of the fund to
be the primary market. Equity securities traded in the over-the-counter market
are valued at the last available bid price prior to the time of valuation.
Securities and assets for which market quotations are not readily available
(including restricted securities which are subject to limitations as to their
sale) are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees. U.S. Treasury bills, and other short-term
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, with original or remaining maturities in excess of 60 days
are valued at the mean of representative quoted bid and asked prices for such
securities or, if such prices are not available, are valued at the mean of
representative quoted bid and asked prices for securities of comparable
maturity, quality and type. Short-term securities with 60 days or less to
maturity are amortized to maturity based on their cost if acquired within 60
days of maturity or, if already held on the 60th day, based on the value
determined on the 61st day. Trading in securities on European and Far Eastern
securities exchanges and over-the-counter markets is normally completed well
before the close of business day in New York. In addition, European or Far
Eastern securities trading may not take place on all business days in New York.
Furthermore, trading takes place in Japanese markets on certain Saturdays and
in various foreign markets on days which are not business days in New York and
on which the fund's net asset value is not calculated. The calculation of net
asset value may not take place contemporaneously with the determination of the
prices of portfolio securities used in such calculation. Events affecting the
values of portfolio securities that occur between the time their prices are
determined and the close of the New York Stock Exchange will not be reflected
in the fund's calculation of net asset value unless the Board of Trustees deems
that the particular event would materially affect net asset value, in which
case an adjustment will be made. Assets or liabilities initially expressed in
terms of foreign currencies are translated prior to the next determination of
the net asset value of the fund's shares, into U.S. dollars at the prevailing
market rates. The fair value of all other assets is added to the value of
securities to arrive at the total assets;
2. There are deducted from the total assets, thus determined, the liabilities,
including accruals of taxes and other expense items; and
3. The net assets so obtained are then divided by the total number of shares
outstanding (excluding treasury shares), and the result, rounded to the nearer
cent, is the net asset value per share.
Any purchase order may be rejected by the Principal Underwriter or by the
fund. The fund will not knowingly sell shares (other than for the reinvestment
of dividends or capital gain distributions) directly or indirectly or through a
unit investment trust to any other investment company, person or entity, where,
after the sale, such investment company, person, or entity would own
beneficially, directly, indirectly, or through a unit investment trust more
than 4.5% of the outstanding shares of the fund without the consent of a
majority of the Board of Trustees.
STATEMENT OF INTENTION - The reduced sales charges and offering prices set
forth in the Prospectus apply to purchases of $50,000 or more made within a
13-month period pursuant to the terms of a written statement of intention (the
"Statement") in the form provided by the Principal Underwriter and signed by
the purchaser. The Statement is not a binding obligation to purchase the
indicated amount. When a shareholder signs a Statement in order to qualify for
a reduced sales charge, shares equal to 5% of the dollar amount specified in
the Statement will be held in escrow in the shareholder's account out of the
initial purchase (or subsequent purchases, if necessary) by the Transfer Agent.
All dividends and any capital gain distributions on these escrowed shares will
be credited to the shareholder's account in shares (or paid in cash, if
requested). If the intended investment is not completed within the specified
13-month period, the purchaser will remit to the Principal Underwriter the
difference between the sales charge actually paid and the sales charge which
would have been paid if the total of such purchases had been made at a single
time. If the difference is not paid within 20 days after written request by
the Principal Underwriter or the securities dealer, the appropriate number of
shares held in escrow will be redeemed to pay such difference. If the proceeds
from this redemption are inadequate, the purchaser will be liable to the
Principal Underwriter for the balance still outstanding. The Statement may be
revised upward at any time during the 13-month period, and such a revision will
be treated as a new Statement, except that the 13-month period during which the
purchase must be made will remain unchanged and there will be no retroactive
reduction of the sales charges paid on prior purchases.
In the case of purchase orders by the trustees of certain retirement plans by
payroll deduction, the sales charge for the investments made during the
13-month period will be handled as follows: The investment made the first
month of the 13-month period will be multiplied by 13 and then multiplied by
1.5. On the first investment and all other investments made pursuant to the
Statement, a sales charge will be assessed according to the sales charge
breakpoint thus determined. There will be no retroactive adjustments in sales
charges on investments previously made during the 13-month period.
DEALER COMMISSIONS - The following commissions will be paid to dealers who
initiate and are responsible for purchases of $1 million or more and for
purchases made at net asset value by certain retirement plans of organizations
with collective retirement plan assets of $100 million or more: 1.00% on
amounts of $1 million to $2 million, 0.80% on amounts over $2 million to $3
million, 0.50% on amounts over $3 million to $50 million, 0.25% on amounts over
$50 million to $100 million, and 0.15% on amounts over $100 million. The level
of dealer commission will be determined based on sales made over a 12-month
period commencing from the date of the first sale at net asset value. See "The
American Funds Shareholder Guide" in the fund's Prospectus for more
information.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables shareholders
to make regular monthly or quarterly investments in shares through automatic
charges to their bank accounts. With shareholder authorization and bank
approval, the Transfer Agent will automatically charge the bank account for the
amount specified ($50 minimum), which will be automatically invested in shares
at the offering price on or about the 10th day of the month (or on or about the
15th day of the month in the case of accounts for retirement plans where
Capital Guardian Trust Company serves as custodian or trustee). Bank accounts
will be charged on the day or a few days before investments are credited,
depending on the bank's capabilities, and shareholders will receive a
confirmation statement showing the current transaction. Participation in the
plan will begin within 30 days after receipt of the account application. If
the shareholder's bank account cannot be charged due to insufficient funds, a
stop-payment order or the closing of your account, the plan may be terminated
and the related investment reversed. The shareholder may change the amount of
the investment or discontinue the plan at any time by writing to the Transfer
Agent.
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - A shareholder in one fund
may elect to cross-reinvest dividends or dividends and capital gain
distributions paid by that fund (the paying fund) into any other fund in The
American Funds Group (the "receiving fund") subject to the following
conditions: (i) the aggregate value of the shareholder's account(s) in the
paying fund(s) must equal or exceed $5,000 (this condition is waived if the
value of the account in the receiving fund equals or exceeds that fund's
minimum initial investment requirement), (ii) as long as the value of the
account in the receiving fund is below that fund's minimum initial investment
requirement, dividends and capital gain distributions paid by the receiving
fund must be automatically reinvested in the receiving fund, and (iii) if this
privilege is discontinued with respect to a particular receiving fund, the
value of the account in that fund must equal or exceed the fund's minimum
initial investment requirement or the fund shall have the right, if the
shareholder fails to increase the value of the account to such minimum within
90 days after being notified of the deficiency, automatically to redeem the
account and send the proceeds to the shareholder. These cross-reinvestments of
dividends and capital gain distributions will be at net asset value (without
sales charge).
REDEMPTION OF SHARES
The fund's Declaration of Trust permits the fund to direct the Transfer Agent
to redeem the shares of any shareholder for their then current net asset value
per share if at such time the shareholder owns of record, shares having an
aggregate net asset value of less than the minimum initial investment amount
required of new shareholders as set forth in the fund's current registration
statement under the Investment Company Act of 1940, and subject to such further
terms and conditions as the Board of Trustees of the fund may from time to time
adopt.
EXECUTION OF PORTFOLIO TRANSACTIONS
There are occasions on which portfolio transactions for the fund may be
executed as part of concurrent authorizations to purchase or sell the same
security for other funds served by the Investment Adviser, or for trusts or
other accounts served by affiliated companies of the Investment Adviser.
Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to the fund, they are effected only when the
Investment Adviser believes that to do so is in the interest of the fund. When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner. The fund will not pay a mark-up for
research in principal transactions.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the fiscal years ended March 31, 1995, 1994,
and 1993, amounted to $7,563,000, $8,642,000, and $3,438,000 ,
respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New
York, NY 10081, as Custodian. Non-U.S. securities may be held by the
Custodian pursuant to sub-custodial arrangements in non-U.S. banks or foreign
branches of U.S. banks.
INDEPENDENT ACCOUNTANTS - Price Waterhouse LLP, 400 South Hope Street, Los
Angeles, CA 90071, has served as the fund's independent accountants since its
inception, providing audit services, preparation of tax returns and review of
certain documents to be filed with the Securities and Exchange Commission. The
financial statements, included in this Statement of Additional Information from
the Annual Report, have been so included in reliance on the report of Price
Waterhouse LLP given on the authority of said firm as experts in accounting and
auditing.
REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on March 31.
Shareholders are provided at least semiannually with reports showing the
investment portfolio, financial statements and other information. The fund's
annual financial statements are audited by the fund's independent accountants,
Price Waterhouse, whose selection is determined annually by the Trustees.
PERSONAL INVESTING POLICY - Capital Research and Management Company and its
affiliated companies have adopted a personal investing policy consistent with
Investment Company Institute guidelines. This policy includes: a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; pre-clearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; disclosure of personal
holdings by certain investment personnel prior to recommendation for purchase
for the fund; blackout periods on personal investing for certain investment
personnel; ban on short-term trading profits for investment personnel;
limitations on service as a director of publicly traded companies; and
disclosure of personal securities transactions.
The financial statements including the investment portfolio and the report of
Independent Accountants contained in the Annual Report are included in this
statement of additional information. The following information is not included
in the Annual Report:
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE -- MARCH 31, 1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) $20.89
Maximum offering price per share (100/94.25 of
net asset value per share, which takes into
account the fund's current maximum sales $22.16
load)
</TABLE>
SHAREHOLDER AND TRUSTEE RESPONSIBILITY - Under the laws of certain states,
including Massachusetts where the fund was organized and California where the
fund's principal office is located, shareholders of a Massachusetts business
trust may, under certain circumstances, be held personally liable as partners
for the obligations of the fund. However, the risk of a shareholder's
incurring any financial loss on account of shareholder liability is limited to
circumstances in which the fund itself would be unable to meet its obligations.
The Declaration of Trust contains an express disclaimer of shareholder
liability for acts, ommissions, obligations or affairs of the fund and provides
that notice of the disclaimer may be given in each agreement, obligation, or
instrument which is entered into or executed by the fund or Trustees. The
Declaration of Trust provides for indemnification out of fund property of any
shareholder held personally liable for the obligations of the fund and also
provides for the fund to reimburse such shareholder for all legal and other
expenses reasonably incurred in connection with any such claim or liability.
Under the Declaration of Trust, the Trustees, officers, employees or agents of
the fund are not liable for actions or failure to act; however, they are not
protected from liability by reason of their willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct
of their office.
SHAREHOLDER VOTING RIGHTS - All shares of the fund have equal voting rights and
may be voted in the elections of Trustees and on other matters submitted to the
vote of shareholders. As permitted by Massachusetts law, there will normally
be no meetings of shareholders for the purpose of electing Trustees unless and
until such time as less than a majority of the Trustees holding office have
been elected by shareholders. At that time, the Trustees then in office will
call a shareholders meeting for the election of Trustees. The Trustees must
call a meeting of shareholders for the purpose of voting upon the question of
removal of any trustee when requested to do so by the record holders of at
least 10% of the outstanding shares. At such meeting, a trustee may be removed
after the holders of record of not less than two-thirds of the outstanding
shares have declared that the trustee be removed either by declaration in
writing or by votes cast in person or by proxy. Except as set forth above, the
Trustees shall continue to hold office and may appoint successor Trustees. The
shares do not have cumulative voting rights, which means that the holders of a
majority of the shares voting for the election of Trustees can elect all the
Trustees. No amendment may be made to the Declaration of Trust without the
affirmative vote of a majority of the outstanding shares of the fund except
that amendments may be made upon the sole approval of the Trustees to conform
the Declaration of Trust to the requirements of applicable Federal laws or
regulations or the requirements of the regulated investment company provisions
of the Code, however, the Trustees shall not be held liable for failing to do
so. If not terminated by the vote or written consent of a majority of the
outstanding shares, the fund will continue indefinitely.
INVESTMENT RESULTS
The fund's yield is 2.24% based on a 30-day (or one month) period ended
March 31, 1995, computed by dividing the net investment income per share earned
during the period by the maximum offering price per share on the last day of
the period, according to the following formula:
YIELD = 2[( a-b/cd + 1)/6/ -1]
Where: a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the period
that were entitled to receive dividends.
d = the maximum offering price per share on the last day of the
period.
The fund's average annual total return for the one year, five year and
lifetime periods as of March 31, 1995 were -5.09% +9.48% and +16.35% ,
respectively. The average total return ("T") is computed by equating the value
at the end of the period ("ERV") with a hypothetical initial investment of
$1,000 ("P") over a period of years ("n") according to the following formula as
required by the Securities and Exchange Commission: P(1+T)/n/ = ERV.
The following assumptions will be reflected in computations made in accordance
with the formula stated above: (1) deduction of the maximum sales load of
5.75% from the $1,000 initial investment; (2) reinvestment of dividends and
distributions at net asset value on the reinvestment date determined by the
Board; and (3) a complete redemption at the end of any period illustrated. In
addition, the fund will provide lifetime average total return figures.
The fund may also, at times, calculate total return based on net asset value
per share (rather than the offering price), in which case the figure would not
reflect the effect of any sales charges which would have been paid if shares
were purchased during the period reflected in the computation. Consequently,
total return calculated in this manner will be higher. These total returns may
be calculated over periods in addition to those described above. Total return
for the unmanaged indices will be calculated assuming reinvestment of dividends
and interest, but will not reflect any deductions for advisory fees, brokerage
costs or administrative expenses.
The fund may include information on its investment results and/or comparisons
of its investment results to various unmanaged indices (such as The Dow Jones
Average of 30 Industrial Stocks and The Standard and Poor's 500 Composite Stock
Index) or results of other mutual funds or investment or savings vehicles in
advertisements or in reports furnished to present or prospective shareholders.
The fund may refer to results compiled by organizations such as CDA Investment
Technologies, Ibbotson Associates, Lipper Analytical Services, Morningstar,
Inc., Wiesenberger Investment Companies Services and the U.S. Department of
Commerce. Additionally, the fund may, from time to time, refer to results
published in various periodicals, including BARRON'S, FORBES, FORTUNE,
INSTITUTIONAL INVESTOR, KIPLINGER'S PERSONAL FINANCE MAGAZINE, MONEY, U.S. NEWS
and WORLD REPORT AND THE WALL STREET JOURNAL.
The fund may from time to time illustrate the benefits of tax-deferral by
comparing taxable investments to investments made through tax-deferred
retirement plans.
The fund may also, from time to time, refer to statistics compiled by the
U.S. Department of Commerce.
The investment results set forth below were calculated as described in the
fund's Prospectus. The fund's results will vary from time to time depending
upon market conditions, the composition of the fund's portfolio and operating
expenses of the fund, so that any investment results reported by the fund
should not be considered representative of what an investment in the fund may
earn in any future period. These factors and possible differences in
calculation methods should be considered when comparing the fund's investment
results with those published for other mutual funds, other investment vehicles
and unmanaged indices. The fund's results also should be considered relative
to the risks associated with the fund's investment objective and policies.
EXPERIENCE OF THE INVESTMENT ADVISER - Capital Research and Management Company
manages nine common stock funds that are at least 10 years old. In all of the
10-year periods during which these funds were managed by Capital Research and
Management Company since 1965 ( 115 in all), those funds have had better total
returns than the Standard and Poor's 500 Composite Stock Index in 94 of the
115 periods.
Note that past results are not an indication of future investment results.
Also, the fund has different investment policies than the funds mentioned
above. These results are included solely for the purpose of informing
investors about the experience and history of Capital Research and Management
Company.
The investment results set forth below were calculated as described in the
fund's Prospectus.
EUPAC vs. Various Unmanaged Indices
<TABLE>
<CAPTION>
Period EUPAC S&P 500/1/ MSCI
4/1 - 3/31 EAFE/2/
<S> <C> <C> <C>
1985 - 1995 354.8% 283.9% 382.3%
1984* - 1995 380.1 358.8 399.1
</TABLE>
/1/ The Standard and Poor's 500 Stock Index is comprised of industrial,
transportation, public utilities and financial stocks and represents a large
portion of the value of issues traded on the New York Stock Exchange. Selected
issues traded on the American Stock Exchange are also included.
/2/ The Morgan Stanley Capital International Europe, Australasia and Far East
Index (MSCI EAFE) is an arithmetical average, weighted by market value, of the
more than 1,000 securities listed on the stock exchanges of Europe, Australia,
New Zealand and the Far East.
* From inception on April 16, 1984.
___________________________________
The Benefits of Systematic Investing . . .
Here's how much you would have if you had invested $2,000 a year in the fund:
<TABLE>
<CAPTION>
1 Year 4 Years 7 Years Lifetime
(4/1/94 - 3/31/95) (4/1/91 - 3/31/95) (4/1/88 - 3/31/95) (4/16/84 - 3/31/95)
<S> <C> <C> <C>
$1,898 $9,761 $20,809 $49,959
</TABLE>
___________________________________
See the difference time can make in an investment program...
<TABLE>
<CAPTION>
If you had invested Periods ...and taken all distributions
$10,000 in EUPAC 4/1 - 3/31 in shares, your investment
this many years would have been worth this
ago... much at March 31, 1995
Number of Years Value
<S> <C> <C>
1 1994 - 1995 $ 9,491
2 1993 - 1995 $ 11,986
3 1992 - 1995 12,907
4 1991 - 1995 14,419
5 1990 - 1995 15,729
6 1989 - 1995 18,405
7 1988 - 1995 21,109
8 1987 - 1995 22,823
9 1986 - 1995 29,443
10 1985 - 1995 45,476
Life 1984* - 1995 48,007
</TABLE>
(* from inception on April 16, 1984)
___________________________________
Illustration of a $10,000 investment in EUPAC with dividends reinvested
(For the lifetime of the fund April 16, 1984 through March 31, 1995)
<TABLE>
<CAPTION>
COST OF SHARES VALUE OF SHARES
Fiscal Annual Dividends Total From From Total
Year End Dividends (cumulative) Investment Initial Dividends Value
March 31 Cost Investment Reinvested
<S> <C> <C> <C> <C> <C> <C>
1985* $ 69 $ 69 $10,069 $ 9,876 $72 $9,948
1986 35 104 10,104 15,206 162 15,368
1987 118 222 10,222 18,489 332 19,827
1988 491 713 10,713 17,370 854 21,437
1989 316 1,029 11,029 18,379 1,238 24,586
1990 527 1,556 11,556 19,760 1,874 28,762
1991 656 2,212 12,212 20,845 2,653 31,381
1992 611 2,823 12,823 22,857 3,555 35,057
1993 538 3,361 13,361 24,238 4,349 37,754
1994 515 3,876 13,876 30,151 5,962 47,670
1995 716 4,592 14,592 28,695 6,384 48,007
</TABLE>
The dollar amount of capital gain distributions during the period was $8,596
(* from inception on April 16, 1984)
DESCRIPTION OF BOND RATINGS
Corporate Debt Securities
MOODY'S INVESTORS SERVICE, INC. rates the long-term debt securities issued by
various entities in categories ranging from "Aaa" to "C" according to quality.
"AAA -- Best quality. These securities carry the smallest degree of investment
risk and are generally referred to as 'gilt edge.' Interest payments are
protected by a large or by an exceptionally stable margin, and principal is
secure. While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the fundamentally
strong position of such issues."
"AA -- High quality by all standards. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities,
fluctuation of protective elements may be of greater amplitude, or there may be
other elements present which make the long-term risks appear somewhat greater."
"A -- Upper medium grade obligations. These bonds possess many favorable
investment attributes. Factors giving security to principal and interest are
considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future."
"BAA -- Medium grade obligations. Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and , in fact, have
speculative characteristics as well."
"BA -- Have speculative elements; future cannot be considered as well assured.
The protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Bonds in this class are characterized by uncertainty of position."
"B -- Generally lack characteristics of the desirable investment; assurance of
interest and principal payments or of maintenance of other terms of the
contract over any long period of time may be small."
"CAA -- Of poor standing. Issues may be in default or there may be present
elements of danger with respect to principal or interest."
"CA -- Speculative in a high degree; often in default or have other marked
shortcomings."
"C -- Lowest rated class of bonds; can be regarded as having extremely poor
prospects of ever attaining any real investment standing."
STANDARD & POOR'S CORPORATION rates the long-term securities debt of various
entities in categories ranging from "AAA" to "D" according to quality.
"AAA -- Highest rating. Capacity to pay interest and repay principal is
extremely strong."
"AA -- High grade. Very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree."
"A - Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions, than debt in higher rated categories."
"BBB -- Regarded as having adequate capacity to pay interest and repay
principal. These bonds normally exhibit adequate protection parameters, but
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal than for debt in
higher rated categories."
"BB, B, CCC, CC, C -- Regarded, on balance, as predominantly speculative with
respect to capacity to pay interest and repay principal in accordance with the
terms of the obligation. BB indicates the lowest degree of speculation and C
the highest degree of speculation. While such debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions."
"C-1 -- Reserved for income bonds on which no interest is being paid."
"D -- In default and payment of interest and/or repayment of principal is in
arrears."
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
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 4/20 to (yen)5,048,575,000 $53,253,845 $58,691,262 $5,437,417
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.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(A) FINANCIAL STATEMENTS:
Included in Prospectus - Part A
Financial Highlights
Included in Statement of Additional Information - Part B
As of March 31, 1995
Investment Portfolio
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Per-Share Data and Ratios
Report of Independent Accountants
(B) EXHIBITS
1. On file (see SEC file numbers 811-3734 and 2-83847)
2. On file (see SEC file numbers 811-3734 and 2-83847)
3. None.
4. On file (see SEC file numbers 811-3734 and 2-83847)
5. On file (see SEC file numbers 811-3734 and 2-83847)
6. Form of Bank Selling Group Agreement
7. None.
8. On file (see SEC file numbers 811-3734 and 2-83847)
9. On file (see SEC file numbers 811-3734 and 2-83847)
10. Not applicable to this filing.
11. Consent of Independent Accountants.
12. None.
13. On file (see SEC file numbers 811-3734 and 2-83847)
14. On file (see SEC file numbers 811-3734 and 2-83847)
15. On file (see SEC file numbers 811-3734 and 2-83847)
16. Updates to previously filed schedule for computation of each performance
quotation provided in the Registration Statement in response to Item 22 (see
SEC file numbers 811-3734 and 2-83847).
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of April 30, 1995.
<TABLE>
<CAPTION>
Title of Class Number of
Record-Holders
<S> <C>
Shares of Beneficial Interest 680,697
Interest (no par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under an Investment Advisor/Mutual Fund Errors
and Omissions Policy. The carrier of the primary policy in the amount of $15
million is American International Surplus Lines Insurance Company and it has a
$250,000 deductible. The carrier of the secondary policy in the amount of $10
million is Chubb Custom Insurance Company. The carrier of the excess policy in
the amount of $20 million is ICI Mutual.
Article VI of the Trust's By-Laws states:
(a) The Trust shall indemnify any Trustee or officer of the Trust who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than action by or in the right of the Trust) by reason
of the fact that such person is or was such Trustee or officer or an employee
or agent of the Trust, or is or was serving at the request of the Trust as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe such
person's conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the person reasonably believed
to be opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that such
person's conduct was unlawful.
(b) The Trust shall indemnify any Trustee or officer of the Trust who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Trust to procure a judgment
in its favor by reason of the fact that such person is or was such Trustee or
officer or an employee or agent of the Trust, or is or was serving at the
request of the Trust as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees), actually and reasonably incurred by such
person in connection with the defense or settlement of such action or suit if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, except that no
indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable for negligence or
misconduct in the performance of such person's duty to the Trust unless and
only to the extent that the court in which such action or suit was brought, or
any other court having jurisdiction in the premises, shall determine upon
application that, despite the adjudication of liability but in view of all
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.
(c) To the extent that a Trustee or officer of the Trust has been successful
on the merits in defense of any action, suit or proceeding referred to in
subparagraphs (a) or (b) above or in defense of any claim, issue or matter
therein, such person shall be indemnified against expenses (including
attorneys' fees) actually and reasonably incurred by such person in connection
therewith, without the necessity for the determination as to the standard of
conduct as provided in subparagraph (d).
(d) Any indemnification under subparagraph (a) or (b) (unless ordered by a
court) shall be made by the Trust only as authorized in the specific case upon
a determination that indemnification of the Trustee or officer is proper under
the standard of conduct set forth in subparagraph (a) or (b). Such
determination shall be made (i) by the Board by a majority vote of a quorum
consisting of Trustees who were not parties to such action, suit or proceeding,
and are disinterested Trustees or (ii) if such a quorum of disinterested
Trustees so directs, by independent legal counsel in a written opinion.
(e) Expenses incurred in defending a civil or criminal action, suit or
proceeding may be paid by the Trust in advance of the final disposition of such
action, suit or proceeding, as authorized in the particular case, upon receipt
of an undertaking and security by or on behalf of the Trustee or officer to
repay such amount unless it shall ultimately be determined that such person is
entitled to be indemnified by the Trust as authorized herein. Such
determination must be made by disinterested Trustees or independent legal
counsel.
(f) Agents and employees of the Trust who are not Trustees or officers of the
Trust may be indemnified under the same standards and procedures set forth
above, in the discretion of the Board.
(g) Any indemnification pursuant to this Article shall not be deemed exclusive
of any other rights to which those indemnified may be entitled and shall
continue as to a person who has ceased to be Trustee or officer and shall inure
to the benefit of the heirs, executors and administrators of such person.
(h) Nothing in the Declaration of Trust or in these By-Laws shall be deemed
to protect any Trustee, officer, distributor, investment adviser or controlling
shareholder of the Trust against any liability to the Trust or to its
shareholders to which such person would otherwise be subject by reason of
willful malfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such person's office.
(i) The Trust shall have power to purchase and maintain insurance on behalf of
any person against any liability asserted against or incurred by such person,
whether or not the Trust would have the power to indemnify such person against
such liability under the provisions of this Article. Nevertheless, insurance
will not be purchased or maintained by the Trust if the purchase or maintenance
of such insurance would result in the indemnification of any person in
contravention of any rule or regulation of the Securities and Exchange
Commission.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to Trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a Trustee, officer of controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by
such Trustee, officer of controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
None.
ITEM 29. PRINCIPAL UNDERWRITERS.
(A) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America,
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limted Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Money Fund of America, The U.S. Treasury Money
Fund of America and Washington Mutual Investors Fund, Inc.
<TABLE>
<CAPTION>
(B) (1) (2) (3)
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRNNT
<S> <C> <C> <C>
# David A. Abzug Assistant Vice President None
John A. Agar Regional Vice President None
1501 N. University Drive
Little Rock, AR 72207
Robert B. Aprison Regional Vice President None
2983 Bryn Wood Drive
Madison, WI 53711
# Richard Armstrong Assistant Vice President None
* William W. Bagnard Vice President None
Steven L. Barnes Vice President None
8000 Town Line Avenue
South
Suite 204
Minneapolis, MN 55438
Michelle A. Bergeron Regional Vice President None
1190 Rockmart Circle
Kennesaw, GA 30144
Joseph T. Blair Vice President None
27 Drumlin Road
West Simsbury, CT
06092
Ian B. Bodell Vice President None
5900 Robert E. Lee
Court
Nashville, TN 37215
Michael L. Brethower Vice President None
108 Hagen Court
Georgetown, TX 78628
C. Alan Brown Regional Vice President None
4619 McPherson Avenue
St. Louis, MO 63108
* Daniel C. Brown Senior Vice President and None
Director
@ J. Peter Burns Vice President None
Brian Casey Regional Vice President None
9508 Cable Drive
Kensington, MD 20895
Victor C. Cassato Vice President None
999 Green Oaks Drive
Littleton, CO 80121
Christopher J. Cassin Regional Vice President None
231 Burlington
Clarendon Hills, IL 60514
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA
94109
* Larry P. Clemmensen Treasurer and Director None
* Kevin G. Clifford Senior Vice President None
Ruth M. Collier Vice President None
145 West 67th Street,
12K
New York, NY 10023
Thomas E. Cournoyer Vice President None
2333 Granada Boulevard
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
1230 31st Street, N.W.
Washington, DC 20007
* Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Vice President None
3622 E. 87th Street
Tulsa, OK 74137
Kirk D. Dodge Regional Vice President None
2617 Salisbury Road
Ann Arbor, MI 48103
Peter J. Doran Senior Vice President None
1205 Franklin Avenue
Garden City, NY 11530
* Michael J. Downer Secretary None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
& Lloyd G. Edwards Vice President None
@ Richard A. Eychner Vice President None
* Paul H. Fieberg Senior Vice President None
John Fodor Regional Vice President None
5 Marlborough Street -
Suite 51
Boston, MA 02116
Steven S. Fogerty Regional Vice President None
535 Spring Club Drive
Altamonte Springs, FL
32714
* Mark P. Freeman, Jr. President and Director None
Clyde E. Gardner Vice President None
Route 2, Box 3162
Osage Beach, MO 65065
# Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Regional Vice President None
5898 Heather Glen Court
Dublin, OH 43017
* Paul G. Haaga, Jr. Director President and Director
David E. Harper Vice President None
R.D. 1, Box 210, Rte.
519
Frenchtown, NJ 08825
Ronald R. Hulsey Regional Vice President None
6744 Avalon
Dallas, TX 75214
* Robert L. Johansen Vice President and None
Controller
* Victor J. Kriss Senior Vice President None
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
Blake Liberty Regional Vice President None
12585-E East
Tennessee Circle
Aurora, CO 80012
* Susan G. Lindgren Vice President - None
Institutional
Investment Services
Division
* Heather A. Maier Assistant Vice President - None
Institutional Investment
Services
Division
Steve A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Vice President None
5241 South Race Street
Littleton, CO 80121
* John C. Massar Senior Vice President None
E. Lee McClennahan Senior Vice President None
4445 N. Highway AIA,
Suite 232
Vero Beach, FL 32963
% John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station
Road
St. Louis, MO 63131
* R. William Melinat Vice President - None
Institutional
Investment Services
Division
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Road
Charlotte, NC 28226
* Barbara G. Nicholich Assistant Vice President - None
Institutional Investment
Services
Division
Peter A. Nyhus Regional Vice President None
7203 Oak Pointe Curve
Bloomington, MN 55438
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Fredric Phillips Regional Vice President None
32 Ridge Avenue
Newton Center, MA
02159
# Candance D. Pilgrim Assistant Vice President
Carl Platou Regional Vice President None
3938 Ashworth Avenue
N.
Seattle, WA 98103
Steven J. Reitman Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Regional Vice President None
6632 - A3 Fishers Farm
Lane
Charlotte, NC 28277
* George L. Romine, Jr. Vice President - None
Institutional
Investment Services
Division
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07962
* Julie D. Roth Vice President None
Douglas F. Rowe Regional Vice President None
104 River Road
Georgetown, TX 78628
* Christopher Rowey Regional Vice President None
Dean B. Rydquist Vice President None
155 Willow Brook Drive
Roswell, GA 30076
Richard R. Samson Vice President None
4604 Glencoe, Ave., No.
4
Marina del Rey, CA
90292
* R. Michael Shanahan Chairman of the Board None
David W. Short Senior Vice President None
1000 RIDC Plaza, Suite
212
Pittsburgh, PA 15238
* Victor S. Sidhu Vice President - None
Institutional
Investment Services
Division
William P. Simon, Jr. Vice President None
554 Canterbury Lane
Berwyn, PA 19312
* John C. Smith Assistant Vice President - None
Institutional Investment
Services
Division
# Mark S. Smith Senior Vice President and None
Director
* Mary E. Smith Assistant Vice President - None
Institutional Investment
Services
Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd.,
#850
Richardson, TX 75082
Daniel S. Spradling Senior Vice President None
#4 West Fourth Avenue,
Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
308 S. Eagle Nest Lane
Danville, CA 94506
Francis N. Strazzeri Regional Vice President None
31641 Saddletree Drive
Westlake Village, CA
91361
# James P. Toomey Assistant Vice President None
& Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M Ward Assistant Vice President - None
Institutional Investment
Services
Division
Thomas E. Warren Regional Vice President None
1231 Starboard Lane
Sarasota, FL 34242
# J. Kelly Webb Senior Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
Canonsburg, PA 15317
# Timothy W. Weiss Director None
** N. Dexter Williams Vice President None
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
* Marshall D. Wingo Senior Vice President None
* Robert L. Winston Senior Vice President and None
Director
Janet M. Young Regional Vice President None
1616 Vermont
Houston, TX 77006
</TABLE>
____________________________________
* Business Address, 333 South Hope Street, Los Angeles, CA 90071
** Business Address, Four Embarcadero Center, Suite 1800, San Francisco, CA
94111
# Business Address, 135 South State College Blvd., Brea, CA 92621
% Business Address, 8000 IH-10, Suite 1400, San Antonio, TX 78230
@ Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
& Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
(C) NONE.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, as amended, are maintained and kept in the
offices of the Fund and its investment adviser, Capital Research and Management
Company, 333 South Hope Street, Los Angeles, CA 90071. Certain accounting
records are maintained and kept in the offices of the Fund's accounting
department, 135 State College Blvd., Brea, CA 92621.
Records covering shareholder accounts are maintained and kept by the transfer
agent, American Funds Service Company, 135 South State College Blvd., 8000
IH-10 Suite 1400, San Antonio, TX 78230, 5300 Robin Hood Road, Norfolk, VA
23514 and 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240.
Records covering portfolio transactions are also maintained and kept by the
custodian, The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New York,
New York, 10081.
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
As reflected in the prospectus, the fund undertakes to provide each person to
whom a prospectus is delivered with a copy of the fund's latest annual report
to shareholders, upon request and without charge.
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of January 1, 1995,
are EuroPacific Growth Fund (hereinafter called "the Fund") and American Funds
Service Company, a California corporation (hereinafter called "AFS"). AFS is a
wholly owned subsidiary of Capital Research and Management Company (hereinafter
called "CRMC"). This Agreement will continue in effect until amended or
terminated in accordance with its terms.
2. The Fund hereby employs AFS, and AFS hereby accepts such employment by the
Fund, as its transfer agent. In such capacity AFS will provide the services of
stock transfer agent, dividend disbursing agent, redemption agent, and such
additional related services as the Fund may from time to time require, all of
which services are sometimes referred to herein as "shareholder services."
3. AFS has entered into substantially identical agreements with other
investment companies for which CRMC serves as investment adviser. (For the
purposes of this Agreement, such investment companies, including the Fund, are
called "participating investment companies.")
4. AFS has entered into an agreement with DST Systems, Inc. (hereinafter
called "DST"), to provide AFS with electronic data processing services
sufficient for the performance of the shareholder services referred to in
paragraph 2.
5. The Fund, together with the other participating companies, will maintain a
Review and Advisory Committee, which Committee will review and may make
recommendations to the boards of the participating investment companies
regarding all fees and charges provided for in this Agreement, as well as
review the level and quality of the shareholder services rendered to the
participating investment companies and their shareholders. Each participating
investment company may select one director or trustee who is not affiliated
with CRMC, or any of its affiliated companies, or with Washington Management
Corporation or any of its affiliated companies, to serve on the Review and
Advisory Committee.
6. AFS will provide to the participating investment companies the shareholder
services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$.67 per month for each open account on AFS books or in Level 2 or 4 Networking
($8.04 per year)
$.09 per month for each open account maintained in Street Name or Level 1 or 3
Networking ($1.08 per year)
No annual fee will be charged for a participant account underlying a 401(k) or
other defined contribution plan where the plan maintains a single account on
AFS books and responds to all participant inquiries
TRANSACTION FEES:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will bill the Fund monthly, on or shortly
after the first of each calendar month, and the Fund will pay to AFS within
five business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of
directors/trustees of the Fund.
7. All fund-specific charges from third parties -- including DST charges,
payments described in the next sentence, postage, NSCC transaction charges and
similar out-of-pocket expenses -- will be passed through directly to the Fund
or other participating investment companies, as applicable. AFS, subject to
approval of its board of directors, is authorized in its discretion to
negotiate payments to third parties for account maintenance and/or transaction
processing services provided such payments do not exceed the anticipated
savings to the Fund, either in fees payable to AFS hereunder or in other direct
Fund expenses, that AFS reasonably anticipates would be realized by the Fund
from using the services of such third party rather than maintaining the
accounts directly on AFS' books and/or processing non-automated transactions.
8. It is understood that AFS may have income in excess of its expenses and may
accumulate capital and surplus. AFS is not, however, permitted to distribute
any net income or accumulated surplus to its parent, CRMC, in the form of a
dividend without the affirmative vote of a majority of the members of the
boards of directors/trustees of the Fund and all participating investment
companies.
9. This Agreement may be amended at any time by mutual agreement of the
parties, with agreement of the Fund to be evidenced by affirmative vote of a
majority of the members of the board of directors/trustees of the Fund.
10. This Agreement may be terminated on 180 days' written notice by either
party. In the event of a termination of this Agreement, AFS and the Fund will
each extend full cooperation in effecting a conversion to whatever successor
shareholder service provider(s) the Fund may select, it being understood that
all records relating to the Fund and its shareholders are property of the Fund.
11. In the event of a termination of this Agreement by the Fund, the Fund will
pay to AFS as a termination fee the Fund's proportionate share of any costs of
conversion of the Fund's shareholder service from AFS to a successor. In the
event of termination of this Agreement and all corresponding agreements with
all the participating investment companies, all assets of AFS will be sold or
otherwise converted to cash, with a view to the liquidation of AFS when it
ceases to provide shareholder services for the participating investment
companies. To the extent any such assets are sold by AFS to CRMC and/or any of
its affiliates, such sales shall be at fair market value at the time of sale as
agreed upon by AFS, the purchasing company or companies, and the Review and
Advisory Committee. After all assets of AFS have been converted to cash and
all liabilities of AFS have been paid or discharged, an amount equal to any
capital or paid-in surplus of AFS that shall have been contributed by CRMC or
its affiliates shall be set aside in cash for distribution to CRMC upon
liquidation of AFS. Any other capital or surplus and any assets of AFS
remaining after the foregoing provisions for liabilities and return of capital
or paid-in surplus to CRMC shall be distributed to the participating investment
companies in such proportions as may be determined by the Review and Advisory
Committee.
12. In the event of disagreement between the Fund and AFS, or between the Fund
and other participating investment companies as to any matter arising under
this Agreement, which the parties to the disagreement are unable to resolve,
the question shall be referred to the Review and Advisory Committee for
resolution. If the Review and Advisory Committee is unable to resolve the
question to the satisfaction of both parties, either party may elect to submit
the question to arbitration; one arbitrator to be named by each party to the
disagreement and a third arbitrator to be selected by the two arbitrators named
by the original parties. The decision of a majority of the arbitrators shall
be final and binding on all parties to the arbitration. The expenses of such
arbitration shall be paid by the party electing to submit the question to
arbitration.
13. The obligations of the Fund under this Agreement are not binding upon any
of the directors, trustees, officers, employees, agents or shareholders of the
Fund individually, but bind only the Fund itself. AFS agrees to look solely to
the assets of the Fund for the satisfaction of any liability of the Fund in
respect to this Agreement and will not seek recourse against such directors,
trustees, officers, employees, agents or shareholders, or any of them or their
personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY EUROPACIFIC GROWTH FUND
By___________________________________ By_________________________________
Don R. Conlan, Chairman Walter P. Stern, Chairman
By___________________________________ By_________________________________
Kenneth R. Gorvetzian, Secretary Vincent P. Corti, Secretary
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 14 to the registration statement on Form N-1A (the "Registration
Statement") of our report dated April 28, 1995, relating to the financial
statements and selected per share data and ratios appearing in the March 31,
1995 Annual Report of EuroPacific Growth Fund, which is also incorporated by
reference into the Registration Statement. We also consent to the references
to us under the heading "Condensed Financial Information" in the Prospectus and
under the headings "Independent Accountants" and "Reports to Shareholders" in
the Statement of Additional Information.
PRICE WATERHOUSE LLP
Los Angeles, California
May 25, 1995
SCHEDULE FOR COMPUTATION OF EACH PERFORMANCE QUOTATION
PROVIDED IN THE REGISTRATION STATEMENT
(1) ENDING REDEMPTION VALUE AND TOTAL RETURN
Value of an initial investment at the end of a period and total return for the
period are computed as set forth below.
(A) INITIAL INVESTMENT DIVIDED BY
PUBLIC OFFERING PRICE FOR ONE SHARE AT BEGINNING
OF PERIOD EQUALS
NUMBER OF SHARES INITIALLY PURCHASED
(B) NUMBER OF SHARES INITIALLY PURCHASED PLUS
NUMBER OF SHARES ACQUIRED AT NET ASSET VALUE
THROUGH REINVESTMENT OF DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS DURING PERIOD EQUALS
NUMBER OF SHARES PURCHASED DURING PERIOD
(C) NUMBER OF SHARES PURCHASED DURING PERIOD MULTIPLIED BY
NET ASSET VALUE OF ONE SHARE AS OF THE LAST DAY
OF THE PERIOD EQUALS
VALUE OF INVESTMENT AT END OF PERIOD
(D) VALUE OF INVESTMENT AT END OF PERIOD DIVIDED BY
INITIAL INVESTMENT
MINUS ONE AND THEN MULTIPLIED BY 100 EQUALS
TOTAL RETURN FOR THE PERIOD EXPRESSED AS A
PERCENTAGE
Exhibit 16
(2) AVERAGE ANNUAL TOTAL RETURN
Average annual total return quotations for the one-year, five-year and lifetime
periods ended on the date of the most recent balance sheet are computed
according to the formula set forth below.
P(1+T)/n/ = ERV
WHERE: P = a hypothetical initial investment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 investment as of the
end of one-year and lifetime periods (computed in accordance with the formula
shown in (1), above)
THUS:
AVG. ANNUAL TOTAL RETURN AT PUBLIC OFFERING PRICE:
1 Year Total Return 1,000(1+T)/1/ = $ 949.12
T = -5.09%
Five Year Avg. Annual Total Return 1,000(1+T)/5/ = $ 1,572.95
T = 9.48%
Lifetime Avg. Annual Total Return 1,000(1+T)/10/ = $ 4,547.65
T = 16.35%
Hypothetical illustrations based on $1,000 and $10,000 initial investments used
to obtain ending values over various time periods are attached. Illustrations
of $2,000 per year investments in an Individual Retirement Account are also
included.
(3) YIELD
Yield is computed as set forth below.
(A) Dividends and interest earned during the period MINUS
Expenses accrued for the period EQUALS
Net investment income
(B) Net income investment DIVIDED BY
Average daily number of shares
outstanding during the period that
were entitled to receive dividends EQUALS
Net investment income per share earned
during the period
(C) Net investment income per share earned
during the period DIVIDED BY
Maximum offering price per share on
last day of the period EQUALS
Current month's yield
(D) Current months yield PLUS ONE RAISED
TO THE SIXTH
POWER EQUALS
Semiannual compounded yield
(E) Semiannual compounded yield MINUS ONE
MULTIPLIED BY TWO
EQUALS
Annualized rate
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/94 1000.00 21.95 0.00 % 45.558 21.950 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 1000 15 15 1015 41 952 40 992 15 1007.07 48.208
TOTAL $ 41
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/90 1000.00 28.77 0.00 % 34.758 28.770 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/91 1000 23 23 1023 13 1055 13 1068 23 1091.05 35.949
3/31/92 1000 21 44 1044 0 1157 14 1171 47 1218.88 36.625
3/31/93 1000 19 63 1063 0 1227 15 1242 70 1312.65 37.196
3/31/94 1000 18 81 1081 5 1526 24 1550 107 1657.44 75.510
3/31/95 1000 25 106 1106 68 1452 90 1542 127 1669.13 79.901
TOTAL $ 86
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/85 1000.00 14.38 0.00 % 69.541 14.380 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/86 1000 3 3 1003 0 1540 0 1540 4 1544.84 69.776
3/31/87 1000 12 15 1015 89 1872 101 1973 20 1993.08 74.037
3/31/88 1000 49 64 1064 205 1759 323 2082 72 2154.96 85.210
3/31/89 1000 31 95 1095 148 1861 500 2361 110 2471.53 92.359
3/31/90 1000 53 148 1148 172 2001 717 2718 173 2891.33 100.498
3/31/91 1000 66 214 1214 36 2111 793 2904 250 3154.61 103.941
3/31/92 1000 61 275 1275 0 2314 869 3183 341 3524.12 105.893
3/31/93 1000 54 329 1329 0 2454 922 3376 419 3795.23 107.544
3/31/94 1000 52 381 1381 15 3053 1162 4215 577 4792.10 218.319
3/31/95 1000 72 453 1453 198 2905 1300 4205 620 4825.90 231.015
TOTAL $ 863
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/16/84 1000.00 13.73 0.00 % 72.860 13.725 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/85 1000 7 7 1007 0 1048 0 1048 7 1055.31 73.387
3/31/86 1000 4 11 1011 0 1613 0 1613 17 1630.28 73.635
3/31/87 1000 13 24 1024 94 1961 107 2068 35 2103.31 78.132
3/31/88 1000 52 76 1076 217 1843 341 2184 90 2274.10 89.921
3/31/89 1000 34 110 1110 156 1950 527 2477 131 2608.11 97.463
3/31/90 1000 56 166 1166 182 2096 756 2852 199 3051.12 106.052
3/31/91 1000 70 236 1236 38 2211 836 3047 281 3328.94 109.685
3/31/92 1000 65 301 1301 0 2425 917 3342 376 3718.91 111.746
3/31/93 1000 57 358 1358 0 2571 972 3543 461 4004.96 113.487
3/31/94 1000 55 413 1413 16 3199 1226 4425 631 5056.95 230.385
3/31/95 1000 76 489 1489 209 3044 1371 4415 677 5092.63 243.783
TOTAL $ 912
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/94 1000.00 23.29 5.75 % 42.937 21.950 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 1000 14 14 1014 39 897 38 935 14 949.12 45.434
TOTAL $ 39
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/90 1000.00 30.53 5.75 % 32.755 28.770 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/91 1000 22 22 1022 12 994 12 1006 22 1028.17 33.877
3/31/92 1000 20 42 1042 0 1090 13 1103 45 1148.63 34.514
3/31/93 1000 18 60 1060 0 1156 14 1170 67 1237.02 35.053
3/31/94 1000 17 77 1077 5 1438 22 1460 101 1561.96 71.160
3/31/95 1000 24 101 1101 65 1368 84 1452 120 1572.95 75.297
TOTAL $ 82
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/85 1000.00 15.26 5.75 % 65.531 14.380 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/86 1000 3 3 1003 0 1451 0 1451 4 1455.77 65.753
3/31/87 1000 11 14 1014 84 1764 95 1859 19 1878.18 69.769
3/31/88 1000 46 60 1060 194 1657 304 1961 69 2030.71 80.297
3/31/89 1000 30 90 1090 140 1754 471 2225 104 2329.00 87.033
3/31/90 1000 50 140 1140 162 1885 675 2560 164 2724.61 94.703
3/31/91 1000 62 202 1202 34 1989 747 2736 236 2972.69 97.947
3/31/92 1000 58 260 1260 0 2181 819 3000 320 3320.94 99.788
3/31/93 1000 51 311 1311 0 2313 868 3181 395 3576.39 101.343
3/31/94 1000 49 360 1360 14 2877 1095 3972 543 4515.80 205.731
3/31/95 1000 68 428 1428 187 2738 1225 3963 584 4547.65 217.695
TOTAL $ 815
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/16/84 1000.00 14.56 5.75 % 68.681 13.725 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/85 1000 7 7 1007 0 988 0 988 6 994.78 69.178
3/31/86 1000 3 10 1010 0 1521 0 1521 15 1536.78 69.412
3/31/87 1000 12 22 1022 88 1849 101 1950 32 1982.71 73.652
3/31/88 1000 49 71 1071 204 1737 321 2058 85 2143.76 84.767
3/31/89 1000 31 102 1102 148 1838 497 2335 123 2458.66 91.878
3/31/90 1000 53 155 1155 171 1976 713 2689 187 2876.25 99.974
3/31/91 1000 66 221 1221 36 2084 788 2872 266 3138.19 103.400
3/31/92 1000 61 282 1282 0 2286 865 3151 354 3505.82 105.343
3/31/93 1000 53 335 1335 0 2424 917 3341 434 3775.50 106.985
3/31/94 1000 52 387 1387 15 3015 1156 4171 596 4767.21 217.185
3/31/95 1000 72 459 1459 197 2870 1293 4163 637 4800.86 229.816
TOTAL $ 859
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/85 10000.00 15.26 5.75 % 655.308 14.380 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/86 10000 33 33 10033 0 14509 0 14509 48 14557.54 657.522
3/31/87 10000 112 145 10145 836 17641 953 18594 187 18781.57 697.681
3/31/88 10000 465 610 10610 1935 16573 3043 19616 690 20306.98 802.965
3/31/89 10000 299 909 10909 1397 17536 4707 22243 1046 23289.87 870.324
3/31/90 10000 500 1409 11409 1624 18853 6752 25605 1640 27245.74 947.019
3/31/91 10000 621 2030 12030 343 19889 7468 27357 2369 29726.61 979.460
3/31/92 10000 579 2609 12609 0 21809 8189 29998 3210 33208.78 997.860
3/31/93 10000 510 3119 13119 0 23126 8684 31810 3953 35763.38 1013.414
3/31/94 10000 488 3607 13607 142 28768 10948 39716 5441 45157.32 2057.281
3/31/95 10000 678 4285 14285 1866 27379 12246 39625 5850 45475.90 2176.922
TOTAL $ 8143
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/85 10000.00 180.66 0.00 % 55.353 180.660 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/86 10000 452 452 10452 0 13224 0 13224 535 13759.68 57.596
3/31/87 10000 487 939 10939 0 16146 0 16146 1204 17350.90 59.482
3/31/88 10000 538 1477 11477 0 14330 0 14330 1576 15906.46 61.441
3/31/89 10000 622 2099 12099 0 16322 0 16322 2471 18793.24 63.734
3/31/90 10000 730 2829 12829 0 18817 0 18817 3585 22402.73 65.902
3/31/91 10000 809 3638 13638 0 20769 0 20769 4847 25616.64 68.271
3/31/92 10000 851 4489 14489 0 22345 0 22345 6090 28435.12 70.438
3/31/93 10000 889 5378 15378 0 25001 0 25001 7757 32758.27 72.527
3/31/94 10000 932 6310 16310 0 24674 0 24674 8557 33231.71 74.549
3/31/95 10000 993 7303 17303 0 27716 0 27716 10675 38391.44 76.674
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/16/84 10000.00 14.56 5.75 % 686.813 13.725 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/85 10000 69 69 10069 0 9876 0 9876 71 9947.78 691.779
3/31/86 10000 35 104 10104 0 15206 0 15206 161 15367.73 694.116
3/31/87 10000 118 222 10222 882 18489 1006 19495 331 19826.82 736.509
3/31/88 10000 491 713 10713 2043 17370 3213 20583 854 21437.07 847.650
3/31/89 10000 316 1029 11029 1475 18379 4969 23348 1237 24585.94 918.757
3/31/90 10000 527 1556 11556 1714 19760 7128 26888 1873 28761.92 999.719
3/31/91 10000 656 2212 12212 362 20845 7883 28728 2652 31380.87 1033.966
3/31/92 10000 611 2823 12823 0 22857 8645 31502 3554 35056.82 1053.390
3/31/93 10000 538 3361 13361 0 24238 9167 33405 4348 37753.59 1069.810
3/31/94 10000 515 3876 13876 150 30151 11557 41708 5962 47670.31 2171.768
3/31/95 10000 716 4592 14592 1970 28695 12927 41622 6384 48006.62 2298.067
TOTAL $ 8596
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/16/84 10000.00 158.32 0.00 % 63.163 158.320 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/85 10000 492 492 10492 0 11411 0 11411 539 11950.84 66.151
3/31/86 10000 539 1031 11031 0 15090 0 15090 1353 16443.96 68.832
3/31/87 10000 581 1612 11612 0 18425 0 18425 2311 20736.08 71.087
3/31/88 10000 644 2256 12256 0 16352 0 16352 2658 19010.03 73.429
3/31/89 10000 744 3000 13000 0 18625 0 18625 3834 22459.95 76.169
3/31/90 10000 873 3873 13873 0 21472 0 21472 5301 26773.67 78.760
3/31/91 10000 967 4840 14840 0 23700 0 23700 6914 30614.58 81.591
3/31/92 10000 1017 5857 15857 0 25498 0 25498 8485 33983.03 84.181
3/31/93 10000 1062 6919 16919 0 28529 0 28529 10621 39150.30 86.679
3/31/94 10000 1113 8032 18032 0 28156 0 28156 11560 39716.77 89.097
3/31/95 10000 1187 9219 19219 0 31626 0 31626 14257 45883.06 91.636
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/86 10000.00 23.49 5.75 % 425.713 22.140 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/87 10000 72 72 10072 541 11460 617 12077 83 12160.14 451.714
3/31/88 10000 301 373 10373 1253 10766 1970 12736 411 13147.74 519.879
3/31/89 10000 194 567 10567 905 11392 3047 14439 639 15078.99 563.490
3/31/90 10000 323 890 10890 1051 12248 4372 16620 1020 17640.21 613.146
3/31/91 10000 402 1292 11292 222 12920 4835 17755 1491 19246.45 634.150
3/31/92 10000 375 1667 11667 0 14168 5302 19470 2030 21500.98 646.063
3/31/93 10000 330 1997 11997 0 15023 5622 20645 2509 23154.93 656.133
3/31/94 10000 316 2313 12313 92 18689 7088 25777 3460 29237.03 1331.983
3/31/95 10000 439 2752 12752 1208 17786 7929 25715 3728 29443.29 1409.444
TOTAL $ 5272
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/87 10000.00 28.56 5.75 % 350.140 26.920 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/88 10000 234 234 10234 971 8855 1078 9933 258 10191.31 402.978
3/31/89 10000 150 384 10384 701 9370 1887 11257 431 11688.31 436.783
3/31/90 10000 251 635 10635 815 10074 2877 12951 722 13673.60 475.273
3/31/91 10000 312 947 10947 172 10627 3208 13835 1083 14918.69 491.555
3/31/92 10000 290 1237 11237 0 11653 3518 15171 1495 16666.26 500.789
3/31/93 10000 256 1493 11493 0 12356 3731 16087 1861 17948.35 508.596
3/31/94 10000 245 1738 11738 71 15371 4714 20085 2577 22662.85 1032.476
3/31/95 10000 340 2078 12078 936 14629 5403 20032 2790 22822.72 1092.519
TOTAL $ 3666
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/88 10000.00 26.83 5.75 % 372.717 25.290 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/89 10000 139 139 10139 649 9974 690 10664 146 10810.59 403.983
3/31/90 10000 233 372 10372 754 10723 1527 12250 396 12646.80 439.583
3/31/91 10000 289 661 10661 159 11312 1771 13083 715 13798.35 454.641
3/31/92 10000 269 930 10930 0 12404 1942 14346 1068 15414.70 463.182
3/31/93 10000 237 1167 11167 0 13153 2059 15212 1388 16600.49 470.402
3/31/94 10000 227 1394 11394 66 16362 2629 18991 1969 20960.93 954.940
3/31/95 10000 315 1709 11709 866 15572 3350 18922 2186 21108.84 1010.476
TOTAL $ 2494
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/89 10000.00 28.39 5.75 % 352.237 26.760 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/90 10000 203 203 10203 657 10134 685 10819 207 11026.85 383.276
3/31/91 10000 251 454 10454 139 10690 862 11552 478 12030.89 396.405
3/31/92 10000 235 689 10689 0 11722 945 12667 773 13440.19 403.852
3/31/93 10000 206 895 10895 0 12430 1002 13432 1042 14474.09 410.147
3/31/94 10000 197 1092 11092 58 15463 1306 16769 1507 18276.01 832.620
3/31/95 10000 274 1366 11366 755 14716 1982 16698 1706 18404.95 881.041
TOTAL $ 1609
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/90 10000.00 30.53 5.75 % 327.547 28.770 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/91 10000 215 215 10215 118 9941 119 10060 221 10281.61 338.768
3/31/92 10000 200 415 10415 0 10901 131 11032 453 11485.99 345.132
3/31/93 10000 177 592 10592 0 11559 139 11698 671 12369.57 350.512
3/31/94 10000 169 761 10761 49 14379 223 14602 1016 15618.68 711.557
3/31/95 10000 234 995 10995 645 13685 844 14529 1199 15728.87 752.938
TOTAL $ 812
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/91 10000.00 32.20 5.75 % 310.559 30.350 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/92 10000 184 184 10184 0 10335 0 10335 194 10529.56 316.393
3/31/93 10000 162 346 10346 0 10960 0 10960 379 11339.56 321.325
3/31/94 10000 155 501 10501 45 13634 46 13680 638 14318.12 652.306
3/31/95 10000 215 716 10716 592 12975 623 13598 821 14419.11 690.240
TOTAL $ 637
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/92 10000.00 35.31 5.75 % 283.206 33.280 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/93 10000 145 145 10145 0 9994 0 9994 156 10150.11 287.620
3/31/94 10000 138 283 10283 40 12433 41 12474 342 12816.25 583.884
3/31/95 10000 192 475 10475 530 11832 558 12390 516 12906.66 617.839
TOTAL $ 570
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/93 10000.00 37.44 5.75 % 267.094 35.290 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/94 10000 128 128 10128 38 11725 38 11763 138 11901.60 542.214
3/31/95 10000 179 307 10307 492 11159 518 11677 308 11985.55 573.746
TOTAL $ 530
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/94 10000.00 23.29 5.75 % 429.369 21.950 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10000 141 141 10141 389 8970 381 9351 140 9491.12 454.338
TOTAL $ 389
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/95 10000.00 22.16 5.75 % 451.264 20.890 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10000 0 0 10000 0 9427 0 9427 0 9426.90 451.264
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/94 2000.00 23.29 5.75 % 85.874 21.950 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 2000 28 28 2028 78 1794 76 1870 28 1898.21 90.867
TOTAL $ 78
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/91 2000.00 32.20 5.75 % 62.112 30.350 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/92 2000 37 37 2037 0 2067 0 2067 38 2105.93 63.279
3/31/93 4000 61 98 4098 0 4191 0 4191 106 4297.97 121.790
3/31/94 6000 85 183 6183 25 7558 25 7583 224 7807.24 355.683
3/31/95 8000 146 329 8329 400 8987 416 9403 357 9760.54 467.235
TOTAL $ 425
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/01/88 2000.00 26.83 5.75 % 74.543 25.290 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/89 2000 28 28 2028 130 1995 138 2133 29 2162.10 80.796
3/31/90 4000 87 115 4115 282 4171 442 4613 121 4734.68 164.570
3/31/91 6000 151 266 6266 83 6389 550 6939 283 7222.09 237.960
3/31/92 8000 177 443 8443 0 9073 604 9677 497 10174.00 305.709
3/31/93 10000 185 628 10628 0 11619 640 12259 727 12986.65 367.998
3/31/94 12000 203 831 12831 59 16799 857 17656 1122 18778.18 855.498
3/31/95 14000 311 1142 15142 854 17782 1651 19433 1375 20808.88 996.117
TOTAL $ 1408
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EUROPACIFIC GROWTH FUND
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
4/16/84 2000.00 14.56 5.75 % 137.363 13.725 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/85 2000 14 14 2014 0 1975 0 1975 14 1989.56 138.356
3/31/86 4000 13 27 4027 0 5943 0 5943 42 5985.06 270.328
3/31/87 6000 60 87 6087 452 9518 515 10033 120 10153.71 377.181
3/31/88 8000 298 385 8385 1240 10713 1861 12574 442 13016.66 514.696
3/31/89 10000 220 605 10605 1025 13330 3060 16390 700 17090.76 638.668
3/31/90 12000 407 1012 13012 1323 16358 4668 21026 1172 22198.99 771.602
3/31/91 14000 549 1561 15561 303 19245 5229 24474 1802 26276.64 865.787
3/31/92 16000 549 2110 18110 0 23170 5734 28904 2556 31460.58 945.330
3/31/93 18000 512 2622 20622 0 26568 6081 32649 3261 35910.72 1017.589
3/31/94 20000 516 3138 23138 151 35395 7718 43113 4610 47723.69 2174.200
3/31/95 22000 745 3883 25883 2050 35480 9352 44832 5126 49958.58 2391.507
TOTAL $ 6544
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-1-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 7,704,858
<INVESTMENTS-AT-VALUE> 8,576,336
<RECEIVABLES> 120,097
<ASSETS-OTHER> 4,377
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,700,810
<PAYABLE-FOR-SECURITIES> 83,875
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29,378
<TOTAL-LIABILITIES> 113,253
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,667,058
<SHARES-COMMON-STOCK> 411,039,194
<SHARES-COMMON-PRIOR> 292,890,295
<ACCUMULATED-NII-CURRENT> 27,816
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,234
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 871,478
<NET-ASSETS> 8,587,557
<DIVIDEND-INCOME> 123,527
<INTEREST-INCOME> 91,159
<OTHER-INCOME> 0
<EXPENSES-NET> 75,193
<NET-INVESTMENT-INCOME> 139,493
<REALIZED-GAINS-CURRENT> 118,330
<APPREC-INCREASE-CURRENT> (240,920)
<NET-CHANGE-FROM-OPS> 16,903
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 117,777
<DISTRIBUTIONS-OF-GAINS> 296,792
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 182,082,807
<NUMBER-OF-SHARES-REDEEMED> 82,279,286
<SHARES-REINVESTED> 18,345,378
<NET-CHANGE-IN-ASSETS> 2,158,165
<ACCUMULATED-NII-PRIOR> 10,771
<ACCUMULATED-GAINS-PRIOR> 196,955
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 38,787
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 75,193
<AVERAGE-NET-ASSETS> 7,747,165
<PER-SHARE-NAV-BEGIN> 21.95
<PER-SHARE-NII> .35
<PER-SHARE-GAIN-APPREC> (.19)
<PER-SHARE-DIVIDEND> .317
<PER-SHARE-DISTRIBUTIONS> .903
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.89
<EXPENSE-RATIO> .01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
