PROFILE PROSPECTUS
EUROPACIFIC GROWTH FUND (R)
May 15, 1996
[The American Funds Group(R)]
<PAGE>
EUROPACIFIC GROWTH FUND (R)
333 South Hope Street May 15, 1996
Los Angeles, CA 90071
1. GOAL
The fund seeks to make your money grow over time through investments in stocks
of companies outside the U.S.
2. INVESTMENT STRATEGIES
The fund will normally invest primarily in stocks of companies located in
Europe and the Pacific Basin. The assets of the fund will be invested with
geographic flexibility; accordingly, investments may be made from time to time
in issuers domiciled in developing countries. The fund may purchase and sell
various currencies and, to hedge certain currency exposure, enter into forward
currency contracts in connection with the fund's investments. The fund may
also hold other types of securities, such as bonds, when appropriate.
3. RISKS AND REWARDS
RISKS
- -----
Stock prices rise and fall due to changing circumstances of the issuer,
changing market conditions, and other factors. Investing outside the U.S.
involves special risks, particularly in developing countries, caused by, among
other things, currency fluctuations, different accounting and financial
reporting practices, changing local and regional economic, political and social
conditions, differing market structures, and various administrative
difficulties.
YOU CAN LOSE MONEY BY INVESTING IN THE FUND; YOUR INVESTMENT IS NOT GUARANTEED.
THE LIKELIHOOD OF LOSS IS GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
REWARDS
- -------
Investing outside the U.S. can enhance the fund's ability to provide investors
with growth of capital and may reduce certain risks because of greater
diversification opportunities.
4. APPROPRIATENESS
If you are not a long-term investor seeking capital growth through
international diversification, this fund may not be appropriate for you.
Please consult your investment dealer.
5. FEES AND EXPENSES
Shareholder transaction expenses are charges you pay when you buy or sell
shares of a fund. Annual fund operating expenses are paid out of the fund's
assets. The fund's expenses are factored into its share price or dividends and
are not charged directly to shareholder accounts.
SHAREHOLDER TRANSACTION EXPENSES
- --------------------------------
Maximum sales charge on purchases
(as a percentage of offering price).................................5.75%*
Sales charges are reduced for purchases of $50,000 or more and eliminated for
certain purchases as described in the fund's prospectus.
ANNUAL FUND OPERATING EXPENSES
- ------------------------------
(based on a percentage of average net assets as of March 31, 1996)
Management fees........................0.49%
12b-1 expenses.........................0.24%
Other expenses.........................0.22%
-----
Total fund operating expenses..........0.95%
EXAMPLE
- --------
You would pay the following cumulative expenses on a $1,000 investment,
assuming a 5% annual return. This example should not be considered a
representation of past or future expenses.
ONE YEAR $67
THREE YEARS 86
FIVE YEARS 107
TEN YEARS 167
* The fund has no sales charge on reinvested dividends and no deferred sales
charge or redemption or exchange fees. A contingent deferred sales charge of
1% applies to certain redemptions within 12 months following purchases without
a sales charge.
6. PAST RESULTS
Here are the fund's annual total returns for each of the past 10 calendar
years:
[CHART]
1986 39.9
1987 7.5
1988 21.0
1989 24.2
1990 -0.1
1991 18.6
1992 2.3
1993 35.6
1994 1.1
1995 12.9
Sales charges have not been deducted from fund results shown above.
[END CHART]
PAST RESULTS ARE NOT A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
<S> <C> <C>
AVERAGE ANNUAL
COMPOUND RETURNS
FUND* EAFE INDEX**
One year +12.98% +12.67%
Five years +11.56% + 8.76%
Ten years +13.44% +11.33%
</TABLE>
*These results were calculated for periods ended March 31, 1996 in accordance
with Securities and Exchange Commission rules, which require that the maximum
sales charge be deducted.
**Morgan Stanley Capital International EAFE Index (an index that tracks certain
world stock prices) as of March 31, 1996.
7. INVESTMENT ADVISER
Capital Research and Management Company, one of the world's largest and most
experienced investment advisers, manages the fund, which is a member of The
American Funds Group. Capital Research and Management Company manages this
diversified mutual fund using the multiple portfolio counselor system. Under
this system, the fund's assets are divided into several portions. Each portion
is independently managed by a portfolio counselor or a group of research
professionals, subject to oversight by the investment adviser's investment
committee.
8. PURCHASES
The fund's shares are sold through investment dealers. Your investment dealer
can help you with your account, or you may call American Funds Service Company
at 800/421-0180 with questions about your account. Generally, the minimum
initial investment is $250.
9. REDEMPTIONS
You may redeem shares at anytime no cost by calling American FundsLine(R) at
800/325-3590. (You will need the fund's number - 16 - if you use this
service.) Transactions will be processed as of the next close of the New York
Stock Exchange.
10. DISTRIBUTIONS
Dividends and capital gain distributions are automatically reinvested unless
you notify American Funds Service Company that you would like to invest them in
another of the American Funds or receive payment in cash. Income distributions
are usually made in June and December.
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.
11. OTHER SERVICES
You may exchange your shares for any of the other American Funds or obtain
information about your investment any time by calling American FundsLine(R).
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. IF YOU WOULD LIKE MORE
INFORMATION BEFORE YOU INVEST, PLEASE CONSULT THE FUND'S PROSPECTUS. FOR
DETAILS ABOUT THE FUND'S HOLDINGS OR RECENT INVESTMENT STRATEGIES, PLEASE
REVIEW THE FUND'S MOST RECENT ANNUAL OR SEMI-ANNUAL REPORT. THE PROSPECTUS AND
REPORTS MAY BE OBTAINED AT NO COST BY CALLING 800/421-0180.
[Recycled logo]
This profile prospectus has been printed using soy ink on recycled paper.
