EUROPACIFIC GROWTH FUND
SEMI-ANNUAL REPORT
for the Six Months Ended September 30, 1996
[Photo: Globe]
[The American Funds Group(R)]
EUROPACIFIC GROWTH FUND(R)
Seeks long-term capital appreciation by investing in securities of companies
based outside the United States. More than half of the world's investment
opportunities can be found beyond the borders of our country. As a shareholder
of the fund, you have access to what we believe are among the best of those
opportunities.
A LOOK AT THE FUND'S RESULTS (through 9/30/96 with all distributions
reinvested)
6 months +6.1%
12 months +13.0%
Lifetime (since 4/16/84) +547.7%
Average annual compound return over the fund's lifetime +16.2%
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the returns with all distributions reinvested
through September 30, 1996, assuming payment of the 5.75% maximum sales charge
at the beginning of the stated periods:
Average Annual
Total Return Compound Return
Ten Years +244.83% +13.18%
Five Years +73.43% +11.64%
One Year +6.50% -
Sales charges are lower for accounts of $50,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN
WILL VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. FUND SHARES ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER AGENCY, ENTITY OR PERSON.
Unless otherwise indicated, all returns in this report assume reinvestment
of all distributions. The figures in this report reflect past results. Share
price and return will vary, so you may lose money by investing in the fund. The
shorter the time period of your investment, the greater the possibility of
loss. Fund shares are not deposits or obligations of, or insured or guaranteed
by, the U.S. government, any financial institution, the Federal Deposit
Insurance Corporation, or any other agency, entity or person.
FELLOW SHAREHOLDERS:
EuroPacific Growth Fund continued to make solid progress in the first half of
its 1997 fiscal year. For the six months ended September 30, your holdings
gained 6.1%, assuming you reinvested the income dividend of 8 cents a share and
capital gain distribution of 49 cents a share that were declared in May and
paid in June.
During this period, the unmanaged Morgan Stanley Capital International
EAFE(R) (Europe, Australasia, Far East) Index, which measures all major stock
markets outside North America, posted an increase of 1.6%.
These latest results bring the fund's total return since operations began
in April 1984 to 547.7%, or an average compound return of 16.2% a year. By
comparison, the EAFE Index rose 471.4% during that period. EuroPacific's
lifetime results place it first among 13 U.S.-based international funds in
existence throughout its 12-year life span, according to Lipper Analytical
Services. /1/
THE SIX MONTHS IN REVIEW
Most of the world's major stock markets gained ground over the six months
from April through September, although economic uncertainty restrained returns
throughout much of the fund's investment universe. Notable exceptions were
Sweden and the United Kingdom, where stock prices showed gains of more than 11%
in dollar terms, and Finland, which posted a remarkable advance of more than
20% measured in dollars. In the rest of Europe, the general economic recovery
has been less buoyant than anticipated, despite monetary policy measures taken
by many governments there to stimulate growth. Although lower interest rates
boosted stock prices early in the period, some of those gains were erased in
mid-summer by concerns about the direction of U.S. interest rates.
Meanwhile, Japan's slow recovery was accompanied by a steady decline in
the yen. This, combined with an uncertain political environment, translated
into poor returns for the six-month period, as Japanese stock prices slid 4.8%
in dollar terms. We took the opportunity provided by the decline to cautiously
increase our investments in Japanese equities: of 50 companies added to the
portfolio during the period, 17 were based in Japan. That country is
EuroPacific's largest area of concentration, at 11% of net assets.
/1/ EuroPacific also finished high in the Lipper rankings over other periods.
For the 10 years ended September 30, 1996, it was in the top 16%, ranking 4th
of 25 comparable funds; for the five years, it was in the top 12%, ranking 8th
of 67 funds; for the 12 months, it was in the top 19%, ranking 60th of 319
funds. Lipper rankings are based on total return and do not reflect the effects
of sales charges.
WHERE THE FUND WAS INVESTED
As always, EuroPacific focuses on the long-term prospects of individual
companies rather than emphasizing geographic regions or industries. This focus
can sometimes lead to sizable holdings in a sector or industry where our
analysts find unusually attractive values. This was the case recently among
financial services companies, many of which are streamlining their operations
in an attempt to become more competitive and enhance shareholder value. We have
been making substantial investments in that area, and banking is now the fund's
largest industry concentration, accounting for nearly 10% of net assets.
We believe that health care companies, which are well represented in the
fund, should also stand to benefit from industry-wide restructuring. As an
example, a new company, Novartis, will soon be created from a merger between
Swiss-based pharmaceutical giants Ciba-Geigy and Sandoz. These two holdings are
among the fund's largest: together, they represent 2.4% of net assets.
EuroPacific continues to have a fairly heavy concentration in
telecommunications-related stocks as well, several of which posted some of the
fund's largest price gains over the six-month period. These included
Telecomunicacoes Brasileiras (Telebras), which rose 57.8%; Telecom Italia and
its parent company, STET, which increased 39.4% and 30.1%, respectively; and
Nokia, the Finnish mobile telephone maker, which gained 29.0%.
Our emphasis on individual companies leads to broad diversification. On
September 30, the fund held securities representing more than 250 companies
based in nearly 30 countries. As the table opposite shows, nearly half of net
assets was invested in European stocks. Asia and the Pacific Basin accounted
for more than one-fourth of net assets. New investments in Canadian stocks
bring our holdings in the Americas to more than 9%, while 12% was held in the
form of cash and equivalents.
WHERE THE FUND'S ASSETS ARE INVESTED
(percent invested by country)
<TABLE>
<CAPTION>
EuroPacific Growth Fund
(9/30/96) (3/31/96)
ASIA/PACIFIC RIM
<S> <C> <C>
Japan 10.9% 11.8%
Australia 6.8 7.0
Hong Kong 3.7 4.1
New Zealand 2.0 1.8
South Korea 1.5 1.3
Philippines 1.1 1.0
Indonesia .5 .6
India .5 .4
People's Republic of China .3 -
Thailand .1 .2
Singapore - .1
Other - .1
----- -----
27.4 28.4
EUROPE
Sweden 8.7 9.1
United Kingdom 8.1 8.3
Germany 6.8 5.7
France 5.7 5.6
Netherlands 5.5 5.9
Switzerland 4.2 4.5
Italy 3.3 2.8
Spain 2.5 2.5
Finland 1.5 1.2
Norway 1.2 1.0
Ireland 1.1 .6
Denmark .5 .6
Austria .3 .5
Belgium .2 .6
Other - .2
----- -----
49.6 49.1
THE AMERICAS
Canada 4.1 3.4
Mexico 2.7 2.4
Brazil 1.5 1.3
Argentina .6 .7
Other .5 .1
----- -----
9.4 7.9
Other 1.7 1.8
Cash and Equivalents 11.9 12.8
TOTAL 100.0% 100.0%
===== =====
</TABLE>
LOOKING AHEAD
Your fund has continued to grow. Net assets on September 30 stood at over
$14 billion, up about 17% from six months ago. In addition to individual
investors, our family of shareholder accounts includes many corporate investors
and institutions investing in the fund through tax-deferred retirement
programs.
Looking forward, we believe that the economic climate should continue to
improve, albeit slowly. Inflation remains moderate. Many European governments
are attempting to put their houses in order in anticipation of the single
currency unit there, while Japan seems to have put the worst of its financial
crisis behind it.
Of course, we want to emphasize once again that markets do not only go up.
There will be periods when the fund's share value goes down, and we encourage
our shareholders to maintain a long-term perspective.
We look forward to reporting to you again in six months.
Cordially,
[signature]
Walter P. Stern
Chairman of the Board
[signature]
Thierry Vandeventer
President
November 15, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1971 1972 1973 1974 1975
U.S. Stock Market +13% +17% -16% -28% +36%
All Major Stock Markets +31% +38% -14% -22% +37%
Outside North America
1976 1977 1978 1979 1980
U.S. Stock Market +23% -8% +6% +14% +30%
All Major Stock Markets +4% +19% +34% +6% +24%
Outside North America
1981 1982 1983 1984 1985
U.S. Stock Market -4% +22% +22% +6% +33%
All Major Stock Markets -1% -1% +25% +8% +57%
Outside North America
1986 1987 1988 1989 1990
U.S. Stock Market +18% +4% +16% +31% -2%
All Major Stock Markets +70% +25% +29% +11% -23%
Outside North America
1991 1992 1993 1994 1995
U.S. Stock Market +31% +7% +10% +2% +38%
All Major Stock Markets +12% -12% +33% +8% +12%
Outside North America
</TABLE>
[Photo: United States flag]
[Photo Caption] U.S. Stock Market [End Photo Caption]
[Photo: globe]
[Photo Caption] All Major Stock Markets Outside North America [End Photo
Caption]
[Chart Caption] The figures show how the two averages fared in a particular
year. The percentages on the top lines represent the U.S. stock market; the
lower lines are for all major stock markets outside North America. [End Photo
Caption]
[Chart Caption] Note: These figures, based on U.S. dollars, are for calendar
years and include dividends. [End Photo Caption]
[End chart]
This chart shows that stock markets outside North America have done
better, as a group, than the U.S. market in 16 of the past 25 calendar years.
In each of those 16 years, the Morgan Stanley Capital International EAFE(R)
(Europe, Australasia, Far East) Index, which reflects all major stock markets
outside North America, has gone up more or declined less than its U.S. Index.
(Both indexes are unmanaged.)
Over the entire 25-year period, the EAFE index gained 2,675% (or an
average of 14.2% a year), while the U.S. index rose 1,458% (or an average of
11.6% a year), both including reinvestment.
Investing outside the U.S. is subject to additional risks, which are
detailed in the prospectus.
<TABLE>
EuroPacific Growth Fund (unaudited)
Investment Portfolio September 30, 1996
Percent
Largest Individual of Net
[pie chart] Holdings Assets
Industry Diversification
<S> <C> <C>
9.90% Banking Astra 1.96%
8.84% Telecommunications Mannesmann 1.92
6.25% Broadcasting & Publishing Internationale
5.77% Automobiles Nederladen Groep NV 1.79
4.78% Health & Personal Care Australia and New Zealand
51.70% Other Industries Banking Group 1.46
12.76% Bonds, Cash and Equivalents Ciba-Geigy 1.40
[end pie chart] News Corp. 1.33
Volvo 1.31
ABB 1.21
Bayerische Motoren Werke 1.20
Daimler-Benz 1.18
EQUITY-TYPE SECURITIES
(common and preferred stocks and convertible debentures)
Shares or Market Percent
Principal Value of Net
Amount (Millions) Assets
Banking- 8.44%
Australia and New Zealand Banking Group Ltd. (Australia) 36,798,675 $ 210.555 1.46%
HSBC Holdings PLC (Hong Kong) 6,646,800 123.347
HSBC Holdings PLC (United Kingdom) 172,223 3.303 .88
Svenska Handelsbanken Group, Class A (Sweden) 5,075,000 124.883 .87
Westpac Banking Corp. (Australia) 21,585,130 111.719 .78
Banco de Santander, SA (Spain) 1,766,800 91.932
Banco de Santander, SA (American Depositary Receipts) 308,200 16.142 .75
Bank of Nova Scotia (Canada) 3,744,800 106.177 .74
ABN AMRO Holding NV (Netherlands) 1,905,402 105.682 .73
Royal Bank of Canada (Canada) 3,260,000 92.910 .64
Banco Popular Espanol, SA (Spain) 245,000 45.038 .31
Deutsche Bank AG (Germany) 800,000 37.693 .26
Allied Irish Banks, PLC (Ireland) 5,580,254 33.060 .23
Kookmin Bank (Global Depositary Receipt) (South Korea) /1/ /2/ 1,146,600 28.808 .20
Hanil Bank (South Korea) 2,915,000 27.896 .19
Yasuda Trust and Banking Co., Ltd. (Japan) 5,100,000 27.526 .19
Grupo Financiero Banamex Accival, SA de CV, Class B
(Mexico) /1/ 9,530,000 20.610
Grupo Financiero Banamex Accival, SA de CV, Class L /1/ 2,207,777 4.511 .17
Bank of Tokyo-Mitsubishi, Ltd. (Japan) 1,151,000 25.076 .17
Toyo Trust and Banking Co., Ltd. (Japan) 2,700,000 24.691 .17
National Australia Bank Ltd. (Australia) 2,000,000 21.115 .15
Credit Commercial de France (France) 425,853 19.129 .13
Shinhan Bank (South Korea) 782,063 17.807 .12
MBL International Finance, 3.00% convertible
debentures 2002 (Bermuda) $15,000,000 16.941 .12
Mitsui Trust and Banking Co. Ltd. (Japan) 1,475,000 15.604 .11
Barclays PLC (United Kingdom) 1,000,000 14.688 .10
Korea First Bank (South Korea) /1/ 2,010,000 14.512 .10
CS Holding Group (Switzerland) 134,000 13.242 .09
Bangkok Bank Public Co. Ltd., 3.25% convertible
debentures 2004 (Thailand) $10,000,000 11.100 .08
Asahi Bank, Ltd. (Japan) 850,000 9.678 .07
Sakura Finance (Bermuda) Trust 110 6.405 .04
Convertible Preference Share Units (Japan)
Merita Ltd., Class A (Finland) /1/ 1,711,233 3.722 .03
Sumitomo Bank, Ltd., 0.75% convertible
debentures 2001 (Japan) Y307,000,000 2.990 .02
Telecommunications- 8.84%
Telecom Italia Mobile SpA (Italy) 68,730,000 152.814
Telecom Italia Mobile SpA, savings shares 4,320,000 5.370 1.10
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 3,437,000 110.414
Telefonos de Mexico, SA de CV, Class L 9,612,500 15.407 .87
Telecom Corp. of New Zealand Ltd. (New Zealand) 19,091,200 89.677
Telecom Corp. of New Zealand Ltd. /2/ 6,740,000 31.660
Telecom Corp. of New Zealand Ltd. (American Depositary
Receipts) 31,800 2.409 .86
Telecom Italia SpA (Italy) 39,967,300 88.889
Telecom Italia SpA, savings shares 9,600,000 17.686 .74
Hong Kong Telecommunications Ltd. (Hong Kong) 55,952,833 101.301 .70
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 1,211,650 95.115 .66
Koninklijke PTT Nederland NV (Netherlands) 2,601,900 89.569 .62
Tele Danmark AS, Class B (Denmark) 1,000,000 47.481
Tele Danmark AS, Class B (American Depositary Receipts) 1,050,400 24.816 .50
Telefonica de Espana, SA (Spain) 3,318,800 61.656
Telefonica de Espana, SA (American Depositary Receipts) 153,000 8.511 .49
Telefonica del Peru SA (American Depositary Receipts)
(Peru) 2,790,000 63.821 .44
Philippine Long Distance Telephone Co. (American
Depositary Receipts) (Philippines) 426,250 26.641
Philippine Long Distance Telephone Co., convertible
preferred shares, Series III (Global Depositary Receipts) 400,000 23.250
Philippine Long Distance Telephone Co., convertible
preferred shares, Series II (Global Depositary Receipts) /2/ 220,000 7.920 .40
Mahanagar Telephone Nigam Ltd. (India) 7,600,000 44.172 .31
Korea Mobile Telecommunications Corp. (South Korea) 34,683 38.380 .27
Perusahaan Perseroan (Persero) PT Indonesian Satellite
Corp. (American Depositary Receipts) (Indonesia) 815,500 26.911
Perusahaan Perseroan (Persero) PT Indonesian Satellite
Corp. 1,362,500 4.588 .22
Nippon Telegraph and Telephone Corp. (Japan) 4,040 29.701 .21
DDI Corp. (Japan) 2,400 19.387 .13
STET-Societa Finanziaria Telefonica p.a. (Italy) 3,335,000 11.598
STET-Societa Finanziaria Telefonica p.a., nonconvertible
savings shares 2,750,000 7.432 .13
BCE Mobile Communications Inc. (Canada) /1/ 305,000 9.970 .07
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 255,000 8.702 .06
Kokusai Denshin Denwa Co., Ltd. (Japan) 70,300 6.681 .05
Rogers Cantel Mobile Communications Inc., Class B (Canada) /1/ 50,000 .987 .01
Broadcasting & Publishing- 6.25%
News Corp. Ltd. (American Depositary Receipts) (Australia) 3,958,200 82.627
News Corp. Ltd. 7,962,180 41.777
News Corp. Ltd., preferred shares (American Depositary
Receipts) 1,181,600 20.087
News Corp. Ltd., preferred shares 4,031,789 17.294
News Corp. Ltd., preferred shares (United Kingdom) 6,904,296 29.615 1.33
Mediaset SPA (Italy) /1/ /2/ 16,174,544 80.310
Mediaset SPA /1/ 8,093,000 40.183 .84
CANAL+ (France) 323,495 79.546 .55
Soft Bank Corp. (Japan) 523,880 54.952 .38
Grupo Televisa, SA (American Depositary Receipts) (Mexico) /1/ 1,791,800 51.738 .36
Television Broadcasts Ltd. (Hong Kong) 11,467,000 42.633 .30
Carlton Communications PLC (United Kingdom) 5,441,250 41.109 .29
Thompson Corp. (Canada) 2,150,000 38.692 .27
Pathe (Formerly Chargeurs) (France) 140,300 35.830 .25
Pearson PLC (United Kingdom) 3,210,000 34.194 .24
Independent Newspapers, PLC (Ireland) 6,506,544 33.857 .23
Reed International PLC (United Kingdom) 1,155,634 21.366
Elsevier NV (Netherlands) 725,000 11.992 .23
NV Verenigd Bezit VNU (Netherlands) 1,670,000 32.697 .23
Wolters Kluwer NV (Netherlands) 257,659 32.422 .22
Publishing & Broadcasting Ltd. (PBL) (Australia) 6,633,309 31.498 .22
Nippon Television Network Corp. (Japan) 75,000 23.198 .16
Television Francaise 1 SA (France) 165,000 18.306 .13
TeleWest Communications PLC (American Depositary Receipts)
(United Kingdom) /1/ 131,000 2.440 .02
Automobiles- 5.77%
Volvo AB, Class B (Sweden) 8,795,000 189.204 1.31
Bayerische Motoren Werke AG (Germany) 271,909 155.644
Bayerische Motoren Werke AG, preferred shares 43,636 17.586 1.20
Daimler-Benz AG (Germany) /1/ 1,813,650 99.715
Daimler-Benz AG, 4.125% convertible debentures 2003 /2/ DEM101,914,000 69.957 1.18
Toyota Motor Corp. (Japan) 4,890,000 124.946 .87
Suzuki Motor Corp. (Japan) 7,859,000 95.824 .67
Regie Nationale des Usines Renault, SA (France) 1,924,454 45.868 .32
Peugeot SA (France) 200,000 22.034 .15
Hyundai Motor Co. (Global Depositary Receipts)
(South Korea) 940,000 9.635 .07
Health & Personal Care- 4.78%
AB Astra, Class A (Sweden) 5,340,000 225.725
AB Astra, Class B 1,370,000 56.359 1.96
Sandoz Ltd. (Switzerland) 123,000 147.624 1.02
Glaxo Wellcome PLC (United Kingdom) 2,185,000 34.229
Glaxo Wellcome PLC (American Depositary Receipts) 1,000,000 31.125 .45
Elan Corp., PLC (American Depositary Receipts) (Ireland) /1/ 1,825,000 54.522 .38
Hoya Corp. (Japan) 1,175,000 38.450 .27
Teva Pharmaceutical Industries Ltd. (American Depositary
Receipts) (Israel) 800,000 37.100 .26
SmithKline Beecham PLC (American Depositary Receipts)
(United Kingdom) 500,000 30.437 .21
Synthelabo (France) 128,000 10.919 .08
Banyu Pharmaceutical Co., Ltd. (Japan) 806,000 10.911 .08
Sankyo Co., Ltd. (Japan) 397,000 10.144 .07
Multi-Industry- 4.42%
Hutchison Whampoa Ltd. (Hong Kong) 24,430,000 164.282 1.14
Orkla AS, Class A (Norway) 1,974,000 107.958
Orkla AS, Class B 500,000 24.999 .92
Lend Lease Corp. Ltd. (Australia) 4,253,898 69.014 .48
Jardine Strategic Holdings Ltd. (Singapore - Incorporated
in Bermuda) 14,035,500 44.633
Jardine Strategic Holdings Ltd., 7.50% convertible
Eurobonds 2049 $11,631,000 12.296
Jardine Strategic Holdings Ltd. (American Depositary
Receipts) 300,000 1.890
Jardine Strategic Holdings Ltd., warrants, expire 1998 /1/ 1,375,000 .371 .41
Brierley Investments Ltd. (New Zealand) 48,586,070 46.867
Brierley Investments Ltd., convertible preferred shares 2,105,750 1.855 .34
Incentive AB, Class B (Sweden) 350,000 20.396
Incentive AB, Class A 289,900 16.937 .26
Industriforvaltnings AB Kinnevik, Class B (Sweden) 1,059,111 27.661
Industriforvaltnings AB Kinnevik, Class A 302,260 7.803 .25
Ayala Corp., Class B (Philippines) 26,037,100 29.813 .21
First Pacific Co. Ltd. (Hong Kong) 15,928,210 24.100 .17
Preussag AG (Germany) 78,500 19.574
Preussag AG, warrants, expire 2001 /1/ 30,200 1.045 .14
Groupe Bruxelles Lambert SA (Belgium) 109,100 13.545
Groupe Bruxelles Lambert SA, warrants, expire 1998 /1/ 126,900 .986 .10
Insurance- 3.96%
Internationale Nederlanden Groep NV (Netherlands) 6,228,206 194.381
Internationale Nederlanden Groep NV, warrants, expire 2001 /1/ 11,600,000 64.068 1.79
Union de Assurances Federales (France) 380,000 44.439 .31
Royal Sun Alliance (United Kingdom) 6,647,650 42.165 .29
Munchener Ruckversicherungs-Gesellschaft, registered
shares (Germany) 15,433 34.992
Munchener Ruckversicherungs-Gesellschaft 3,000 5.308
Munchener Ruckversicherungs-Gesellschaft, registered
shares, warrants, expire 1998 /1/ 5,053 .861 .29
Corporacion Mapfre, CIR, SA (Spain) 757,223 36.864
Corporacion Mapfre, CIR, SA /3/ 82,159 3.402 .28
Irish Life PLC (Ireland) 7,639,486 30.743 .21
PartnerRE Holdings Ltd. (Incorporated in Bermuda) 1,001,900 28.554 .20
GIO Australia Holdings Ltd. (Australia) 10,106,056 25.353 .18
CKAG Colonia Konzern AG (Germany) 284,880 21.935
CKAG Colonia Konzern AG, preferred shares 15,530 1.021 .16
Istituto Nazionale delle Assicurazioni SpA (Italy) 14,320,500 20.728 .14
Yasuda Fire and Marine Insurance Co., Ltd. (Japan) 2,380,000 16.473 .11
Machinery & Engineering- 3.66%
Mannesmann AG (Germany) 736,012 275.884 1.92
Valmet Oy (Finland) 3,400,000 56.227 .39
Kawasaki Heavy Industries, Ltd. (Japan) 9,945,000 47.879 .33
Atlas Copco AB, Class A (Sweden) 1,970,000 40.596 .28
VA Technologie AG (Austria) 275,700 35.952 .25
Komori Corp. (Japan) 1,237,000 28.502 .20
Kvaerner AS, Class A (Norway) 740,000 28.005 .19
Mitsubishi Heavy Industries Ltd. (Japan) 1,753,000 14.255 .10
Food & Household Products- 3.52%
Nestle SA (Switzerland) 137,225 152.885 1.06
Groupe Danone (France) 628,224 91.713 .64
Reckitt & Colman PLC (United Kingdom) 7,675,000 85.957 .60
Unilever PLC (United Kingdom) 3,200,000 68.399 .47
Cadbury Schweppes PLC (United Kingdom) 8,109,282 65.135 .45
PT Indofood Sukses Makmur (Indonesia) 11,132,000 23.711 .16
NV Verenigde Bedrijven Nutricia (Netherlands) 105,000 13.869 .10
Universal Robina Corp. (Philippines) 6,000,000 3.034 .02
Uni-Charm Corp. (Japan) 100,000 2.510 .02
Energy Sources- 3.15%
TOTAL, Class B (France) 1,142,461 89.918
TOTAL, Class B (American Depositary Receipts) 1,033,547 40.438 .90
Royal Dutch Petroleum Co. (Netherlands) 550,000 85.988
Royal Dutch Petroleum Co. (New York Registered Shares) 115,000 17.954
'Shell' Transport and Trading Co., PLC (New York Registered
Shares) (United Kingdom) 225,000 20.869 .87
Repsol SA (American Depositary Receipts) (Spain) 1,225,000 40.578
Repsol SA 950,000 31.228 .50
Suncor Inc. (Canada) 1,000,000 36.029 .25
ENI SpA (American Depositary Receipts) (Italy) 550,000 27.913 .19
YPF SA, Class D (American Depositary Receipts)(Argentina) 967,000 22.120 .15
Petrofina SA (Belgium) 60,000 18.566 .13
Broken Hill Proprietary Co. Ltd. (Australia) 1,098,595 14.085 .10
Sasol Ltd. (South Africa) 419,940 4.954 .03
Engen Ltd. (South Africa) 603,680 3.301 .02
Petron Corp. (Philippines) 2,118,750 .768 .01
Beverages & Tobacco- 3.03%
Coca-Cola Amatil Ltd. (Australia) 10,174,157 133.660 .93
Seagram Co. Ltd. (Canada) 1,700,000 63.538 .44
LVMH Moet Hennessy Louis Vuitton (France) 200,000 43.409 .30
Panamerican Beverages, Inc., Class A (Mexico) 1,034,100 42.527 .30
Lion Nathan Ltd. (New Zealand) 15,940,000 39.666 .28
San Miguel Corp., Class B (Philippines) 11,846,200 38.884 .27
South African Breweries Ltd. (South Africa) 992,533 26.482 .18
Swedish Match AB (Sweden) 8,413,000 25.402 .18
PT Hanjaya Mandala Sampoerna (Indonesia) 2,265,000 22.026 .15
Utilities: Electric & Gas- 2.91%
Korea Electric Power Corp. (South Korea) 1,589,580 52.569
Korea Electric Power Corp. (American Depositary Receipts) 740,000 13.968
Korea Electric Power Corp., 5.00% convertible
debentures 2001 $5,000,000 5.028 .50
Hongkong Electric Holdings Ltd. (Hong Kong) 14,481,500 46.818 .32
Consolidated Electric Power Asia Ltd. (Hong Kong -
Incorporated in Bermuda) 19,827,312 41.922
Consolidated Electric Power Asia Ltd. (American Depositary
Receipts) /2/ 231,000 4.884 .32
PowerGen PLC (United Kingdom) 6,000,000 45.518 .32
Centrais Eletricas Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 1,819,000 25.011
Centrais Eletricas Brasileiras SA, ordinary nominative
(American Depositary Receipts) 982,000 13.012 .26
Companhia Energetica de Minas Gerais - CEMIG
(American Depositary Receipts) (Brazil) 831,650 24.742
Companhia Energetica de Minas Gerais - CEMIG, preferred
nominative 421,000,000 12.578 .26
National Power PLC (United Kingdom) 5,350,000 32.930 .23
Hong Kong and China Gas Co. Ltd. (Hong Kong) 14,062,896 23.915 .17
Scottish Power PLC (United Kingdom) 3,857,000 18.431 .13
CESP - Companhia Energetica de Sao Paulo, ordinary
nominative (Brazil) /1/ 264,120,000 8.538
CESP - Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts) /1/ 723,420 6.330
CESP - Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts) /1/ /2/ 83,664 .732 .11
Huaneng Power International, Inc., Class N (American
Depositary Receipts) (People's Republic of China) /1/ 925,000 15.378 .11
Edison SpA (Italy) 2,122,890 13.242 .09
Manila Electric Co., Class B (Philippines) 1,753,424 12.983 .09
Electrical & Electronic- 2.88%
ABB AG, Class A (formerly BBC Brown Boveri) (Switzerland) 44,074 53.881
ABB AB, Class B (formerly ASEA AB) (Sweden) 504,300 53.293
ABB AB, Class A 400,000 42.391
ABB AB, Class B (American Depositary Receipts) 240,000 25.200 1.21
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 3,271,880 82.489
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) 660,000 16.748 .69
Nokia Corp., Class K (Finland) 1,113,000 49.977
Nokia Corp., Class A 192,000 8.600 .41
Siemens AG (Germany) 600,000 31.636 .22
Northern Telecom Ltd. (Canada) 380,000 21.945 .15
Johnson Electric Holdings Ltd. (Hong Kong - Incorporated
in Bermuda) 6,916,800 15.832 .11
Hitachi, Ltd. (Japan) 810,000 7.843 .05
Tokyo Electron Ltd. (Japan) 192,000 5.560 .04
Business & Public Services- 2.76%
Rentokil Group PLC (United Kingdom) 10,540,000 68.914 .48
Brambles Industries Ltd. (Australia) 3,200,000 51.916 .36
Hyder PLC (United Kingdom) 3,850,000 43.360 .30
Quebecor Printing Inc. (Canada) 2,092,000 34.498 .24
United Utilities PLC (United Kingdom) 3,371,427 30.086 .21
NTT Data Communications Systems Corp. (Japan) 895 27.763 .19
Thames Water PLC (United Kingdom) 3,039,925 25.606 .18
Autopistas, Concesionaria Espanola, SA (Spain) 1,890,000 22.598 .16
Reuters Holdings PLC (United Kingdom) 1,666,700 19.253 .13
Secom Co., Ltd. (Japan) 220,000 13.905 .10
THORN PLC (formerly THORN EMI) (United Kingdom) 2,336,704 13.286 .09
Severn Trent PLC (United Kingdom) 1,365,000 12.598 .09
Securitas AB, Class B (Sweden) 467,000 11.280 .08
Eurotunnel SA, units, comprised of one share of
Eurotunnel SA ordinary and one share of Eurotunnel PLC
ordinary (France) /1/ 5,500,006 9.744 .07
Havas SA (France) 107,900 7.151 .05
Waste Management International PLC (American Depositary
Receipts) (United Kingdom) /1/ 424,400 3.820 .03
Chemicals- 2.55%
Ciba-Geigy Ltd. (Switzerland) 157,500 201.331 1.40
AGA AB, Class B (Sweden) 3,430,000 55.924
AGA AB, Class A 160,000 2.657 .41
L'Air Liquide (France) 229,946 35.617 .25
BASF AG, warrants, expire 2001 (Germany) /1/ 250,000 28.506 .20
Akzo Nobel NV (Netherlands) 150,000 18.182 .13
DSM NV (Netherlands) 123,306 12.107 .08
Sumitomo Chemical Co., Ltd. (Japan) 2,358,000 10.908 .08
Electronic Components- 2.08%
Kyocera Corp. (Japan) 1,383,000 98.573 .68
Rohm Co., Ltd. (Japan) 1,205,000 75.947 .53
Murata Manufacturing Co., Ltd. (Japan) 1,910,000 68.153 .47
ASM Lithography Holding NV (Netherlands) /1/ 940,000 36.259 .25
Hirose Electric Co., Ltd. (Japan) 350,000 21.400 .15
Metals: Nonferrous- 2.08%
Pechiney, Class A (France) 1,974,785 83.927 .58
Cominco Ltd. (Canada) 2,600,000 52.975 .37
WMC Ltd. (Australia) 8,178,192 52.619 .37
Inco Ltd. (Canada) 1,340,000 41.205 .29
Outokumpu Oy, Class A (Finland) 2,120,000 39.935 .28
Teck Corp., Class B (Canada) 900,000 18.345 .13
Noranda Inc. (Canada) 450,000 9.206 .06
Recreation & Other Consumer Products- 2.03%
Nintendo Co., Ltd. (Japan) 1,389,500 89.071 .62
EMI Group PLC (formerly THORN EMI) (United Kingdom) 2,876,735 60.072 .42
Fuji Photo Film Co., Ltd. (Japan) 1,550,000 47.109 .33
Square Co., (Japan) 540,000 30.984 .21
Sony Music Entertainment (Japan) Inc. (Japan) 642,000 25.959 .18
Bajaj Auto Ltd. (India) 880,000 24.890 .17
PolyGram NV (New York Registered Shares) (Netherlands) 250,000 13.937 .10
Merchandising- 1.87%
H & M Hennes & Mauritz AB, Class B (Sweden) 967,150 118.704 .82
Tesco PLC (United Kingdom) 9,500,000 45.100 .31
Amway Japan Ltd. (American Depositary Receipts) (Japan) 715,000 15.194
Amway Japan Ltd. 335,000 14.536 .21
Cifra, SA de CV, Class A (Mexico) /1/ 9,395,000 13.936
Cifra, SA de CV, Class C /1/ 8,067,200 11.581
Cifra, SA de CV, Class B /1/ 1,076,400 1.551 .19
Woolworths Ltd. (Australia) 9,623,182 21.477 .15
Ito-Yokado Co., Ltd. (Japan) 280,000 15.890 .11
WHSmith Group PLC (United Kingdom) 1,500,000 11.075 .08
Industrial Components- 1.42%
Compagnie Generale des Etablissements Michelin, Class B
(France) 1,394,000 71.120
Compagnie Generale des Etablissements Michelin, convertible
preferred shares 56,266 3.219 .52
Calsonic Corp. (Japan) 3,903,000 29.883 .21
Morgan Crucible Co. PLC (United Kingdom) 3,408,240 25.270 .18
MINEBEA Co., Ltd. (Japan) 2,078,000 18.425 .13
Bridgestone Corp. (Japan) 1,000,000 18.020 .12
Continental AG (Germany) 875,000 16.003 .11
Sumitomo Electric Industries, Ltd. (Japan) 710,000 9.739 .07
BICC PLC (United Kingdom) 1,500,000 6.922
BICC PLC, rights, expire 10/10/96 /1/ 272,727 .081 .05
Orbital Engine Corp. Ltd. (Australia) /1/ 5,039,242 4.507
Orbital Engine Corp. Ltd. (American Depositary Receipts) /1/ 43,573 .294 .03
Appliances & Household Durables- 1.37%
AB Electrolux, Class B (Sweden) 1,110,000 62.421 .43
Sony Corp. (Japan) 937,000 59.056 .41
Philips Electronics NV (Netherlands) 1,605,000 57.971 .40
SANYO Electric Co., Ltd. (Japan) 3,625,000 19.467 .13
Forest Products & Paper- 1.13%
UPM-Kymmene Corp. (Finland) 2,300,000 47.860
UPM-Kymmene Corp., 8.25% convertible debentures 2043 FIM40,000,000 10.163 .40
Kimberly-Clark de Mexico, SA de CV, Class A (Mexico) 1,580,000 29.998 .21
Stora Kopparbergs Bergslags AB, Class B (Sweden) 2,150,000 27.427 .19
AssiDoman AB (Sweden) 828,000 20.063 .14
Carter Holt Harvey Ltd. (New Zealand) 8,224,336 18.109 .13
MAYR-MELNHOF Karton AG (Austria) /1/ 160,000 7.974 .06
Building Materials & Components- 0.85%
CEMEX, SA de CV, ordinary participation certificates
(Mexico) 16,799,750 62.857
CEMEX, SA de CV, Class B 2,210,625 9.063
CEMEX, SA de CV, Class A 1,793,075 6.792 .55
Holderbank Financiere Glaris Ltd. (Switzerland) 58,938 42.743 .30
Real Estate- 0.69%
Sun Hung Kai Properties Ltd. (Hong Kong) 6,250,000 66.478 .46
Mitsui Fudosan Co., Ltd. (Japan) 1,480,000 19.638 .14
C&P Homes, Inc. (Philippines) 18,487,000 12.525 .09
Miscellaneous Materials & Commodities- 0.58%
Compagnie de Saint-Gobain (France) 325,071 44.058 .31
SGL Carbon AG (Germany) 331,600 38.679 .27
Metals: Steel- 0.53%
Kawasaki Steel Corp. (Japan) 16,899,000 56.663 .39
Pohang Iron & Steel Co., Ltd. (American Depositary
Receipts) (South Korea) 526,800 11.260
Pohang Iron & Steel Co., Ltd. 7,870 .564 .08
Thyssen AG (Germany) 50,000 9.250 .06
Transportation: Rail & Road- 0.50%
TNT Ltd. (Australia) /1/ 28,550,000 36.377 .25
Guangshen Railway Co. Ltd., Class H (American Depositary
Receipts) (People's Republic of China) /1/ 1,148,000 21.812 .15
Canadian National Railway System (Canada) 400,000 8.200 .06
Nippon Konpo Unyu Soko Co., Ltd. (Japan) 686,000 5.683 .04
Wholesale & International Trade- 0.43%
Mitsubishi Corp. (Japan) 1,947,000 24.787 .17
MITSUI & CO (Japan) 2,700,000 23.456 .16
ITOCHU Corp. (Japan) 2,172,000 13.767 .10
Transportation: Shipping- 0.42%
Stolt-Nielsen SA, Class B (American Depositary Receipts)
(Incorporated in Luxembourg) 845,000 13.203
Stolt-Nielsen SA 837,000 13.078 .18
Nippon Yusen KK (Japan) 4,270,000 22.204 .15
Bergesen D.Y. AS, Class B (Norway) 650,000 13.499 .09
Leisure & Tourism- 0.40%
Granada Group PLC (United Kingdom) 1,621,709 21.727 .15
Mandarin Oriental International Ltd. (Singapore -
Incorporated in Bermuda) 10,749,717 15.910 .11
Euro Disney SCA (France) /1/ 7,320,000 15.448
Euro Disney SCA, warrants, expire 2004 /1/ 1,100,000 .298 .11
Rank Organisation PLC (United Kingdom) 700,000 4.686 .03
Aerospace & Military Technology- 0.32%
Rolls-Royce PLC (United Kingdom) 6,694,781 25.080 .17
Bombardier Inc., Class B (Canada) 1,569,100 22.360 .15
Gold Mines- 0.26%
Ashanti Goldfields Co. Ltd. (Global Depositary Receipts)
(Ghana) 1,326,900 22.226
Ashanti Goldfields Co. Ltd., 5.50% convertible
debentures 2003 $18,000,000 16.290 .26
Transportation: Airlines- 0.17%
British Airways PLC (American Depositary Receipts)
(United Kingdom) 179,400 15.316
British Airways PLC 1,056,000 8.953 .17
Financial Services - 0.13%
ORIX Corp. (Japan) 250,500 9.657 .07
Acom Co., Ltd. (Japan) 210,000 8.284 .06
Data Processing & Reproduction- 0.09%
Olivetti SpA (Italy) /1/ 17,900,000 6.603 .05
Riso Kagaku Corp. (Japan) 70,000 5.178 .04
Miscellaneous- 1.51%
Other equity-type securities in initial period
of acquisition 217.559 1.51
----------- --------
TOTAL EQUITY-TYPE SECURITIES (cost: $9,994.773 million) 12,560.604 87.24
----------- --------
BONDS
Principal
Amount
(Millions)
Argentinean Government- 0.00%
Argentina 6.8125% March 2005 /4/ $85.140 $71.305 .50%
New Zealand Government- 0.36%
New Zealand 8.00% July 1998 NZ$75.000 52.273 .36
----------- --------
TOTAL BONDS (cost: $90.425 million) 123.578 .86
----------- --------
SHORT-TERM SECURITIES
Corporate Short-Term Notes- 7.86%
Daimler-Benz North America Corp. 5.31%-5.45% due
10/18-12/11/96 $95.880 95.175 .66
Toyota Motor Credit Corp. 5.27%-5.38% due 10/21-12/17/96 79.900 79.292 .55
Ford Credit Europe PLC 5.28%-5.42% due 10/2-10/30/96 74.000 73.776 .51
Sandoz Corp. 5.30%-5.40% due 10/21-11/8/96 72.000 71.709 .50
ABN AMRO North America Finance Inc. 5.395%-5.43% due
11/12-12/3/96 71.300 70.745 .49
General Electric Capital Corp. 5.29%-5.40% due
11/1-11/15/96 66.100 65.745 .46
Svenska Handelsbanken Group 5.29%-5.43% due 10/16-12/19/96 61.400 60.919 .42
Abbey National North America 5.30% due 11/19-11/27/96 55.000 54.562 .38
International Business Machines Corp. 5.27%-5.30% due
10/21-10/23/96 54.000 53.823 .37
Halifax Building Society 5.27%-5.34% due 10/10-11/15/96 52.600 52.275 .36
Commonwealth Bank of Australia 5.29%-5.32% due
10/16-11/15/96 50.265 50.060 .35
International Lease Finance Corp. 5.28%-5.44% due
10/17-11/18/96 49.800 49.557 .34
Coca-Cola Co. 5.28%-5.31% due 10/4-11/20/96 49.300 49.124 .34
Wool International 5.27%-5.45% due 10/10-11/25/96 44.000 43.788 .30
National Australia Funding (Delaware) Inc. 5.27%-5.38% due
10/3-10/15/96 39.900 39.855 .28
PepsiCo, Inc. 5.28%-5.31% due 10/18-11/5/96 35.400 35.293 .25
Deutsche Bank Financial Inc. 5.25% due 10/23/96 28.500 28.404 .20
American Express Credit Corp. 5.31%-5.35% due 10/9-10/15/96 27.900 27.852 .19
Canada Bills 5.27% due 12/9/96 26.197 25.927 .18
UBS Finance (Delaware) Inc. 5.85% due 10/1/96 25.700 25.696 .18
Canadian Wheat Board 5.27%-5.35% due 11/7-11/20/96 22.500 22.352 .16
Ford Motor Credit Co. 5.43% due 10/4/96 22.300 22.286 .16
Canadian Imperial Holdings Inc. 5.30% due 10/7/96 18.000 17.981 .13
Commerzbank AG 5.28%-5.50% due 11/22-12/6/96 15.200 15.072 .10
Certificates of Deposit- 2.49%
National Westminster Bank PLC 5.32%-5.55% due
10/15-12/12/96 80.000 80.005 .56
Societe Generale 5.33%-5.44% due 10/8-11/7/96 68.600 68.597 .48
Canadian Imperial Bank of Commerce 5.36%-5.38% due
10/8-11/19/96 64.500 64.497 .45
Swiss Bank Corp. 5.51%-5.52% due 12/19/96 45.000 45.008 .31
Morgan Guaranty Trust Co. of New York 5.47% due 11/13/96 40.000 40.003 .28
Bayerische Hypotheken-und Wechsel-Bank AG 5.35%-5.60% due
10/9-10/10/96 39.200 39.201 .27
Commerzbank AG 5.36% due 10/7/96 20.000 20.000 .14
Federal Agency Discount Notes- 0.77%
Federal Home Loan Mortgage Corp. 5.35%-5.38% due
11/12-12/20/96 64.560 64.013 .44
Federal National Mortgage Assn. 5.36%-5.41% due
10/28-12/6/96 48.400 48.061 .33
Non-U.S. Government Short-Term Notes- 0.05%
International Bank for Reconstruction and Development
12.50% July 1997 NZ$11.000 7.919 .05
----------- --------
TOTAL SHORT-TERM SECURITIES (cost: $1,607.752 million) 1,608.572 11.17
----------- --------
TOTAL INVESTMENT SECURITIES (cost: $11,692.950 million) 14,292.754 99.27
Excess of cash and receivables over payables 105.324 .73
----------- --------
NET ASSETS $14,398.078 100.00%
=========== ========
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale to the public may require registration or sale only
to qualified institutional buyers.
/3/ Valued under procedures established by the Board of Trustees.
/4/ Coupon rate may change periodically.
See Notes to Financial Statements
</TABLE>
<PAGE>
EQUITY-TYPE SECURITIES APPEARING IN
THE PORTFOLIO SINCE MARCH 31, 1996
Allied Irish Banks
Asahi Bank
ASM Lithography Holding
Bajaj Auto
Bank of Nova Scotia
Bank of Tokyo-Mitsubishi
Barclays
BASF
Brambles
Cadbury Schweppes
Companhia Energetica de Minas Gerais - CEMIG
Credit Commercial de France
CS Holding
Deutsche Bank
Elan
ENI
First Pacific
Fuji Photo Film
Guangshen Railway
Hanil Bank
Hirose Electric
Hoya
Hyundai Motor
Kawasaki Steel
Komori
Kookmin Bank
Kvaerner AS
Mitsui
Mitsui Trust and Banking
Nippon Television Network
Noranda
Rentokil
Rohm
Royal Sun Alliance
Sakura Finance
Securitas
Severn Trent
Sony Music Entertainment
Square Co.
Sumitomo Bank
Suncor
Swedish Match
Synthelabo
Telefonica Del Peru
Thompson
Toyo Trust and Banking
Uni-Charm
Unilever
Valmet
Yasuda Trust and Banking
EQUITY-TYPE SECURITIES ELIMINATED FROM
THE PORTFOLIO SINCE MARCH 31, 1996
Acerinox
Autoliv
B A T Industries
BAA
Baloise Holding
Bank of Montreal
Barco
British Sky Broadcasting
Ceske Energeticke Zavody
Chain Store Okuwa
China Light & Power
Chiyoda Fire & Marine Insurance
Delhaize 'Le Lion'
English China Clays
Finning
Fletcher Challenge Building
Fletcher Challenge Energy
Fletcher Challenge Paper
Hanson
Heineken Holding
Hysan Development
Investor
Kinden
Leifheit
LG Electronics
Magna International
MAI
Makita
News International
Nichicon
Nikon
Pakistan Telecommunication
Rogers Communications
Safra Republic Holdings
Sampo Insurance
Samsung Electronics
SAP
Sappi BVI Finance
Sidel
Singapore Airlines
Sumitomo Forestry
Swire Pacific
Swissair Schweizerische Luftverkehr
Telecom Argentina
Valeo
Wella
<TABLE>
<PAGE>
EuroPacific Growth Fund
Financial Statements
- ---------------------------------------------- --------------- --------------
Statement of Assets and Liabilities
at September 30, 1996 (dollars in millions) (unaudited)
- ---------------------------------------------- ---------------- -------------
<S> <C> <C>
ASSETS:
Investment securities at market
(cost: $11,692.950) $14,292.754
Cash .823
Receivables for-
Sales of investments $61.481
Sales of fund's shares 48.534
Open forward currency contracts 4.809
Dividends and accrued interest 44.433 159.257
------------------- ---------------
14,452.834
LIABILITIES:
Payables for-
Purchases of investments 29.222
Repurchases of fund's shares 12.357
Management services 5.590
Accrued expenses 7.587 54.756
------------------- ---------------
NET ASSETS AT SEPTEMBER 30, 1996-
Equivalent to $25.18 per share on
571,819,145 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $14,398.078
===============
Statement of Operations
for the six months ended September 30, 1996 (dollars in millions) (unaudited)
- ---------------------------------------------- --------------- -------------
INVESTMENT INCOME:
Income:
Dividends $178.802
Interest 48.735 $227.537
-------------------
Expenses:
Management services fee 32.525
Distribution expenses 15.475
Transfer agent fee 6.823
Reports to shareholders .747
Registration statement and prospectus .967
Postage, stationery and supplies 1.084
Trustees' fees .079
Auditing and legal fees .085
Custodian fee 4.040
Taxes other than federal income tax .000
Other expenses .077 61.902
-------------------- ---------------
Net investment income 165.635
---------------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 179.469
Net unrealized appreciation on investments 449.287
Net unrealized appreciation on open
forward currency contracts 2.888 452.175
--------------------- ---------------
Net realized gain and unrealized appreciation
on investments 631.644
---------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $797.279
===============
- ---------------------------------------------- ------------------- ---------------
Statement of Changes in Net Assets Six months ended Year ended
(dollars in millions) 9/30/96* 3/31/96
- ---------------------------------------------- ------------------- ---------------
OPERATIONS:
Net investment income $ 165.635 $ 216.732
Net realized gain on investments 179.469 328.434
Net unrealized appreciation on investments 452.175 1,281.505
------------------- ---------------
Net increase in net assets
resulting from operations 797.279 1,826.671
------------------- ---------------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (31.276) (221.348)
Distributions from net realized gain on
investments (270.886) (93.827)
------------------- ---------------
Total dividends and distributions (302.162) (315.175)
------------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 100,023,113
and 186,653,832 shares, respectively 2,459.824 4,301.025
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 11,789,373 and 13,154,617 shares,
respectively 289.405 296.950
Cost of shares repurchased: 48,122,822
and 102,718,162 shares, respectively (1,181.669) (2,361.627)
------------------- ---------------
Net increase in net assets resulting from
capital share transactions 1,567.560 2,236.348
------------------- ---------------
TOTAL INCREASE IN NET ASSETS 2,062.677 3,747.844
NET ASSETS:
Beginning of period 12,335.401 8,587.557
----------------- ---------------
End of period (including undistributed
net investment income: $171.895
and $37.536, respectively) $14,398.078 $12,335.401
==================== ===============
* Unaudited
See Notes to Financial Statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. EuroPacific Growth Fund (the "fund") is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The fund seeks long-term capital appreciation by investing in the securities of
companies based outside the U.S. The following paragraphs summarize the
significant accounting policies consistently followed by the fund in the
preparation of its financial statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price. Long-term and short-term
securities with original or remaining maturities in excess of 60 days,
including forward currency contracts, are valued at the mean of their quoted
bid and asked prices. Where pricing service or market quotations are not
readily available, securities will be valued at fair value by the Board of
Trustees or a committee thereof. Short-term securities with 60 days or less to
maturity are valued at amortized cost, which approximates market value.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. 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 and premiums on
securities purchased are amortized over the life of the respective securities.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities and other assets and liabilities, including forward
currency contracts, denominated in non-U.S. currencies are recorded in the
financial statements after translation into U.S. dollars utilizing rates of
exchange on the last business day of the period. Purchases and sales of
investment securities, income and expenses are calculated using the prevailing
exchange rate as accrued. The effects of changes in foreign currency exchange
rates on investment securities are included with the net realized and
unrealized gain or loss on investment securities.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $4,040,000 includes $64,000 that was paid by these credits
rather than in cash.
Net realized gains and net unrealized gains of the fund derived in India
are subject to certain non-U.S. taxes at a rate of 30%. The fund provides for
such non-U.S. taxes on investment income, net realized gains and net unrealized
gains.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of September 30, 1996, net unrealized appreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $2,599,804,000, net of accumulated deferred taxes totaling
$4,011,000 on unrealized appreciation of Indian securities, of which
$2,899,174,000 related to appreciated securities and $299,370,000 related to
depreciated securities. During the six months ended September 30, 1996, the
fund realized, on a tax basis, a net capital gain of $178,681,000 on securities
transactions. Net gains related to non-U.S. currency and other transactions of
$788,000 were treated as ordinary income for federal income tax purposes. The
cost of portfolio securities, excluding forward currency contracts, for book
and federal income tax purposes was $11,692,950,000 at September 30, 1996.
3. The fee of $32,525,000 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;
0.465% of such assets in excess of $6.5 billion but not exceeding $10.5
billion; and 0.462% of such assets in excess of $10.5 billion.
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Trustees. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the six months ended September 30,
1996, distribution expenses under the Plan were $15,475,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $6,823,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $5,427,000 (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 who are unaffiliated with CRMC may elect to defer part or all of
the fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of September 30,
1996, aggregate amounts deferred and earnings thereon were $184,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. As of September 30, 1996, accumulated undistributed net realized gain on
investments was $151,731,000 and additional paid-in capital was
$10,893,710,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,505,662,000 and $1,199,855,000, respectively,
during the six months ended September 30, 1996.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended september 30, 1996, such non-U.S. taxes were $27,352,000.
Net realized currency losses on dividends, interest, withholding taxes
reclaimable, and sales of non-U.S. bonds and notes were $889,000 for the six
months ended September 30, 1996.
The fund may enter into forward currency contracts, which represent an
agreement to exchange currencies of different countries at a specified future
date at a specified rate. The fund enters into these contracts to reduce its
exposure to fluctuations in foreign exchange rates arising from investments
denominated in non-U.S. currencies. The fund's use of forward currency
contracts involves market risk in excess of the amount recognized in the
statement of assets and liabilities. The contracts are recorded in the
statement of assets and liabilities at their net unrealized value. The face or
contract amount in U.S. dollars reflects the total exposure the fund has in
that particular contract. Losses may arise upon entering these contracts from
the potential inability of counterparties to meet the terms of their contracts
and from possible movements in non-U.S. exchange rates and securities values
underlying these instruments. At september 30, 1996, the fund had outstanding
forward currency contracts to sell non-U.S. currencies as follows:
NON-U.S. CURRENCY SALE CONTRACTS
<TABLE>
<CAPTION>
Contract Amount U.S. Valuation at 9/30/96
Non-U.S. U.S. Amount Unrealized
Appreciation
<S> <C> <C> <C> <C>
Japanese Yen expiring Y6,871,775,000 $68,035,712 $63,226,702 $4,809,010
1/17/97 to 9/9/97
</TABLE>
<TABLE>
Per-Share Data and Ratios /1/
Year
ended
Six months March
ended 31
9/30/96 /2/ 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $24.28 $20.89 $21.95 $17.64 $16.64 $15.18
----------- -------- -------- ----------- ------- -------
Income From Investment
Operations:
Net investment income .29 .46 .35 .24 .22 .28
Net realized and unrealized
gain (loss) on investments 1.18 3.63 (.19) 4.37 1.04 1.48
----------- -------- -------- ---------- ------- -------
Total income from investment
operations 1.47 4.09 .16 4.61 1.26 1.76
----------- -------- -------- ---------- ------- -------
Less Distributions:
Dividends from net investment
income (.059) (.49) (.317) (.187) (.222) (.30)
Dividends from net realized
non-U.S. currency gains /3/ (.021) - (.003) (.043) (.038) -
Distributions from net
realized gains (.49) (.21) (.90) (.07) - -
----------- -------- -------- ---------- ------- -------
Total distributions (.57) (.70) (1.22) (.30) (.26) (.30)
----------- -------- -------- ---------- ------- -------
Net Asset Value, End of Period $25.18 $24.28 $20.89 $21.95 $17.64 $16.64
=========== ======== ======== ========== ======= =======
Total Return /4/ 6.11% /5/ 19.84% .71% 26.27% 7.69% 11.71%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $14,398 $12,335 $8,588 $6,429 $2,992 $1,933
Ratio of expenses to average
net assets .46% /5/ .95% .97% .99% 1.10% 1.24%
Ratio of net income to average
net assets 1.24% /5/ 2.09% 1.80% 1.13% 1.40% 1.85%
Average commissions paid per
share /2/ /6/ 1.17 cents /5/ .21 cents .08 cents .25 cents .22 cents 2.09 cents
Portfolio turnover rate 10.10% /5/ 21.77% 16.02% 21.37% 10.35% 9.65%
/1/ Adjusted to reflect the 100% share dividend effective June 10, 1993.
/2/ Unaudited
/3/ Realized non-U.S. currency gains are treated as ordinary income for federal income tax purposes.
/4/ This was calculated without deducting a sales charge. The maximum sales charge is 5.75% of
the fund's offering price.
/5/ Based on operations shown for the period and, accordingly, not representative of a full year's
operations.
/6/ Brokerage commissions paid on portfolio transactions increase the cost of securities purchased or
reduce the proceeds of securities sold and are not reflected in the fund's statement of operations.
Shares traded on a principal basis, such as most over-the-counter and fixed-income transactions, are
excluded. Generally, non-U.S. commissions are lower than U.S. commissions when expressed as
cents per share but higher when expressed as a percentage of transactions because of the lower
per-share prices of many non-U.S. securities.
</TABLE>
BOARD OF TRUSTEES
ELISABETH ALLISON, Cambridge, Massachusetts
Administrative Director, ANZI, Ltd.(financial publishing and consulting);
publishing consultant, Harvard Medical School
DAVID I. FISHER, Los Angeles, California
Chairman of the Board,
The Capital Group Companies, Inc.
ROBERT A. FOX, Livingston, California
President and Chief Executive Officer,
Foster Farms Inc.
ALAN GREENWAY, La Jolla, California
Private investor; President, Greenway Associates, Inc.
(management consulting services)
WILLIAM R. GRIMSLEY, San Francisco, California
Senior Vice President and Director,
Capital Research and Management Company
KOICHI ITOH, Tokyo, Japan
Managing Partner, VENCA Management
(venture capital)
WILLIAM H. KLING, St. Paul, Minnesota
President, Minnesota Public Radio;
President, Greenspring Co.;
former President,
American Public Radio
(now Public Radio International)
JOHN G. MCDONALD, Stanford, California
The IBJ Professor of Finance,
Graduate School of Business, Stanford University
WILLIAM I. MILLER, Columbus, Indiana
Chairman of the Board, Irwin Financial Corporation
KIRK P. PENDLETON, Southampton, Pennsylvania
Chairman of the Board and Chief Executive Officer,
Cairnwood, Inc.(
venture capital investment)
DONALD E. PETERSEN, Birmingham, Michigan
Retired; former Chairman of the Board and Chief Executive Officer, Ford Motor
Company
WALTER P. STERN, New York, New York
Chairman of the Board of the fund
Chairman of the Board, Capital Group International, Inc.
THIERRY VANDEVENTER, Geneva, Switzerland
President of the fund
Chairman of the Board, Capital Research Company
OTHER OFFICERS
STEPHEN E. BEPLER, New York, New York
Executive Vice President of the fund
Senior Vice President, Capital Research Company
MARK E. DENNING, London, England
Executive Vice President of the fund
Senior Vice President and Director, Capital Research Company
ROBERT W. LOVELACE, Los Angeles, California
Vice President of the fund
Executive Vice President, Capital Research Company
JANET A. MCKINLEY, New York, New York
Vice President of the fund
Senior Vice President, Capital Research Company
VINCENT P. CORTI, Los Angeles, California
Secretary of the fund
Vice President - Fund Business Management Group, Capital Research and
Management Company
STEVEN N. KEARSLEY, Brea, California
Treasurer of the fundVice President and Treasurer,
Capital Research and Management Company
R. MARCIA GOULD, Brea, California
Assistant Treasurer of the fund
Vice President - Fund Business Management Group,
Capital Research and Management Company
MARY C. HALL, Brea, California
Assistant Treasurer of the fund
Senior Vice President - Fund Business Management Group
Capital Research and Management Company
We are pleased to announce that Kirk P. Pendleton was elected a Trustee of
EuroPacific Growth Fund on September 24, 1996. Mr. Pendleton is Chairman of
the Board and Chief Executive Officer of Cairnwood, Inc., a venture capital
company.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER, CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
(Please write to the address nearest you.)
American Funds Service Company
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071-2899
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
This report is for the information of shareholders of EuroPacific Growth Fund,
but it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund. If used as sales material after
December 31, 1996, this report must be accompanied by an American Funds Group
Quarterly Statistical Update for the most recently completed calendar quarter.
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER OR CALL AMERICAN FUNDS SERVICE COMPANY,
TOLL-FREE, AT 800/421-0180.
Litho in USA BDA/AL/3122
Lit. No. EUPAC-013-1196
[The American Funds Group(R)]
Printed on recycled paper
