[cover: graphic: abstract globe]
EUROPACIFIC GROWTH FUND
SEMI-ANNUAL REPORT
For the Six Months Ended September 30, 1997
[The American Funds Group(R)]
EUROPACIFIC GROWTH FUND(R)
Seeks long-term capital appreciation by investing in the securities of
companies based outside the United States. More than half of the world's
investment opportunities can be found beyond the borders of our country. As a
shareholder in the fund, you have access to what we believe are the best of
those opportunities.
A Look at the Fund's Results
(through 9/30/97 with all distributions reinvested)
Six months +15.1%
12 months +25.7
Lifetime (since 4/16/84) +714.2
Average annual compound
return over the fund's
lifetime +16.9
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, 1997, assuming payment of the 5.75% maximum sales charge
at the beginning of the stated periods:
Average Annual
Total Return Compound Return
Ten Years +200.38% +11.63%
Five Years +106.11 +15.56
One Ye +18.47 -
Sales charges are lower for accounts of $50,000 or more.
THE FIGURES SHOWN IN THIS REPORT REFLECT PAST RESULTS, WHICH ARE NOT PREDICTIVE
OF FUTURE 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, returns in this report assume reinvestment of all
distributions.
FELLOW SHAREHOLDERS
EuroPacific Growth Fund made excellent progress in the first half of its 1998
fiscal year. For the six months ended September 30, the value of your shares
increased 15.1% assuming you reinvested both the income dividend of 9 cents a
share and the capital gain distribution of 88 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, had a total return of 12.3% on a reinvested
basis.
These latest results bring the fund's total return since it began
operations in mid-April 1984 to 714.2%, or an average compound return of 16.9%
a year. By comparison, the EAFE Index rose 542.8%, an average of 14.8% a year,
during that period. EuroPacific's lifetime results placed it first among the 13
U.S.-based international funds in existence throughout its 13-year life span,
according to Lipper Analytical Services./1/
/1/ EuroPacific also finished high in the Lipper rankings over other periods.
For the 10 years ended September 30, 1997, it ranked 3rd out of 32 comparable
funds; for the five years, it ranked 15th out of 98 funds; for the 12 months,
it ranked 81st out of 397 funds. Lipper rankings are based on total return and
do not reflect the effects of sales charges.
WORLD MARKETS IN REVIEW
Equity markets around the globe continued their extraordinary march upward
throughout much of the six-month period. (That climb was abruptly halted in
late October, after the close of the period.) Stock prices rose strongly
through July, propelled by robust corporate profits, moderate inflation and
strong capital inflows from enthusiastic investors. Despite a brief downturn in
August, most markets closed the period considerably higher than where they
began. The dollar's continued strength against most local currencies, however,
trimmed returns for U.S. investors.
In Europe, gains were broad-based, with virtually every market in which
the fund invests posting double-digit increases, both in dollars and in local
currency. In a period which saw U.S. stock prices rise 26%, several European
markets reached record highs during the summer. The U.K. ended the six months
with a 21% return in dollars, while Finland, Italy and Spain gained 34%, 30%
and 30%, respectively. The impact of these increases on the fund's results was
significant: Together, these four countries accounted for 20% of net assets.
[Begin sidebar]
"Nearly all of the fund's 10 largest holdings posted substantial gains."
[End sidebar]
Japanese stocks, which have provided disappointing returns in recent
years, closed the period 8% higher in U.S. dollar terms. The Japanese market
was buoyed through midsummer by reports of strong economic growth. The rally
was short-lived, as the effects of a consumer tax hike and government
belt-tightening led to a retreat in stock prices in August and September. Good
stock selection, however, meant that during the six months many of our Japanese
investments did better than the stock market as a whole, including integrated
circuit manufacturer Rohm (+59.8%), Sony (+35.2%) and Honda (+17.1%), which are
also among the fund's larger holdings. Throughout the first half of the fiscal
year, we added to our positions in Japan. At 14% of net assets, Japanese
companies now form the fund's largest area of concentration.
Meanwhile, markets in the Americas continued to do quite well. Many of our
holdings posted higher gains than the fund overall, including Telefonos de
Mexico (+34.5%), the Brazilian utility company Eletrobras (+31.1%) and the Bank
of Nova Scotia (+30.3%).
Southeast Asia was a glaring exception to the world's rising stock markets
during the period. Lax lending policies in a shaky real estate market, as well
as severe overbuilding of manufacturing capacity, sparked a wave of currency
turmoil that began in Thailand and quickly spread to Malaysia, Indonesia and
the Philippines. The shock - which would later strike Hong Kong, Taiwan and
South Korea - sent stock prices reeling and currency values sharply lower. The
crisis had little impact on the fund's results. Although we have had large
holdings in Southeast Asia in the past, the fund has not had a significant
presence there for some time. (EuroPacific does hold nearly 4% of net assets in
Hong Kong; that market experienced a severe decline several weeks after the
close of the reporting period.) We remain optomistic about Southeast Asia's
long-term growth prospects, but we are obviously concerned about the short-term
consequences of the region's financial instability and market excesses. With
stock prices at such low levels, though, we have been keeping an eye out for
bargains.
WHERE THE FUND'S ASSETS ARE INVESTED
(percent invested by country)
EAFE
EuroPacific Growth Fund Index*
(9/30/97) (3/31/97) (9/30/97)
EUROPE
United Kingdom 13.2% 11.8% 20.3%
Sweden 5.4 6.3 2.7
France 4.9 6.0 7.1
Netherlands 4.9 5.4 5.4
Switzerland 3.6 3.9 6.6
Germany 3.5 5.7 9.1
Italy 2.9 2.8 3.6
Spain 2.5 2.8 2.5
Norway 1.6 1.6 .6
Finland 1.3 1.3 .8
Ireland .9 .8 .4
Other Europe 1.0 .72 .5
45.7 49.1 61.6
PACIFIC BASIN
Japan 13.7 10.2 29.2
Australia 6.8 5.8 2.8
Canada 4.7 4.7 -
Hong Kong 3.7 3.4 3.7
Mexico 2.8 2.8 -
South Korea .8 1.1 -
New Zealand .8 1.5 .3
Philippines .7 .9 -
Taiwan .6 .4 -
Other Pacific Basin 1.4 1.9 2.4
36.0 32.7 38.4
Other Countries 6.4 5.8 -
Cash & Equivalents 11.9 12.4 -
TOTAL 100.0% 100.0% 100.0%
*Weighted by market capitalization
[Begin sidebar]
"With stock valuations at high levels, markets have become more volatile."
[End sidebar]
A LOOK AT THE PORTFOLIO
As we have often said, EuroPacific invests on a company-by-company basis,
rather than emphasizing geographic regions. The fund's largest investments
reflect strong convictions about companies we believe provide exceptional value
or attractive prospects for long-term growth. Nearly all of our 10 largest
holdings posted substantial gains over the six-month period. These securities
account for 15% of net assets, representing nine countries and six industries.
In addition to the Bank of Nova Scotia and Telefonos de Mexico, they include
German conglomerate Mannesmann (+25.0%), Swiss pharmaceutical giant Novartis
(+23.9%) and ING Groep (+17.5%), a global banking and insurance company based
in the Netherlands.
Industry concentrations in EuroPacific, like country concentrations, are a
result of judgments on the outlook for individual companies. The fund continues
to be well-represented in the telecommunications, banking and health care
sectors, where many companies are benefiting from a trend toward globalization
as they expand the borders of their operations. Telefonica de Espana (+27.6%),
the fund's fourth-largest holding, is a good example. In addition to enhancing
its mobile communications capabilities at home, the company has been investing
heavily in infrastructure in Latin American markets, which are still relatively
underserviced.
Our emphasis on individual companies leads to broad diversification. On
September 30, the fund held securities representing more than 275 companies
based in over 30 countries. Nearly 46% of net assets was invested in European
stocks. Pacific Basin countries accounted for 36% of net assets, while 6% was
invested in equities from other countries. The remaining 12% was held in cash
and equivalents.
LOOKING AHEAD
A number of factors have contributed to the remarkable vigor of global equity
markets in recent years. Inflationary pressures appear to be in check. That has
kept interest rates relatively low, encouraging continued capital investment.
European governments have attempted to put their fiscal houses in order in
anticipation of the single currency set to begin in January 1999. Regulatory
barriers have continued to fall, providing both new and profitable investment
opportunities.
At the same time, economic fundamentals in many cases have not kept pace
with financial markets. Although the U.S. economy appears to be on a steady
track, most European countries are still struggling with high unemployment and
tax burdens that have restrained growth. Latin America is still in the early
stages of economic reform. In Asia, the vast majority of economies are facing
considerable uncertainty after a period of growth.
It is an environment that suggests caution as we move ahead. With stock
valuations at high levels, markets have become more volatile and less tolerant
of profit disappointments and other shocks. Indeed, many investors learned this
lesson in late October, when Hong Kong's market selloff triggered a wave of
declines in virtually every equity market around the world. We would also point
out that the fund's 15% six-month gain is close to the 17% average annual
return earned by the fund over its lifetime. Therefore, while periods like the
one just past are always welcome, we would urge shareholders to set realistic
expectations for their long-term goals and not extrapolate future returns from
these substantial gains.
We look forward to reporting to you again in six months.
Cordially,
[/s/ Walter P. Stern] [/s/ Thierry Vandeventer]
Walter P. Stern Thierry Vandeventer
Chairman of the Board President
November 14, 1997
<TABLE>
EuroPacific Growth Fund
<S> <C>
Equity-Type Securities Added to the PortfolioEquity-Type Secutities Eliminated from the Portfolio
since March 31, 1997 since March 31, 1997
Acer AB Electrolux
ADVANTEST ACOM
Asahi Breweries BASF
Ayala Land Ciba Specialty Chemicals Holdings
Billiton Credit Commercial de France
BOC DSM
Cheung Kong (Holdings) Eurotunnel
De Beers Consolidated Mines Hoechst
Dimension Data Holdings Kimberly-Clark de Mexico
Dixons Kokusai Denshin Denwa
Edaran Otomobil Nasional Mitsubishi Heavy Industries
Foster's Brewing Munchener Ruckversicherungs-Gesellschaft
Fujitsu NTT Data Communications Systems
Kingfisher Outokumpu Oy
Koninklijke KNP BT Pohang Iron & Steel
LG Semicon PowerGen
Modern Times Preussag
Normandy Mining Riso Kagaku
Norsk Hydro Rolls-Royce
Oil Cos Lukoil SANYO Electric
Orange Sumitomo Bank
Portugal Telecom Thyssen
Premier Farnell Yasuda Trust and Banking
Qantas Airways
Redland
Safeway
Samsung Electronics
Shiseido
Singapore Press Holdings
South China Morning Post (Holdings)
STB Cayman Capital
Telecom Argentina
Telefonica de Argentina
Tokai Bank
Unibanco-Uniao de Bancos Brasileiros
Unified Energy System of Russia
Williams Holdings
</TABLE>
<TABLE>
EuroPacific Growth Fund
Investment Portfolio September 30, 1997 (unaudited)
<S> <C> <C> <C> <C>
Percent
Industry Diversification Largest Individual of Net
10.17% Telecommunications Holdings Assets
9.89% Banking Novartis 2.33%
7.01% Health & Personal Care Astra 1.88
5.05% Broadcasting & Publishing Mannesmann 1.60
4.52% Automobiles Telefonica de Espana 1.49
51.24% Other Industries ING Groep 1.48
12.12% Bonds, Cash and Equivalents Bank of Nova Scotia 1.32
Australia and New Zealand
Banking Group 1.32
Bayerische Motoren Werke 1.29
Telefonos de Mexico 1.22
Telecom Italia Mobile 1.20
EQUITY-TYPE SECURITIES Shares or Market Percent
(common and preferred stocks and convertible debentures) Principal Value of Net
Amount (Millions) Assets
Telecommunications - 10.17%
Telefonica de Espana, SA (Spain) 9,285,000 $293.046
Telefonica de Espana, SA (American Depositary Receipts) 153,000 14.401 1.49%
Telefonos de Mexico, SA de CV, Class L (American Depositary
Receipts) (Mexico) 4,372,000 226.251
Telefonos de Mexico, SA de CV, Class L 9,612,500 25.065 1.22
Telecom Italia Mobile SpA (Italy) 49,780,000 198.831
Telecom Italia Mobile SpA, savings shares 23,105,000 48.190 1.20
Hong Kong Telecommunications Ltd. (Hong Kong) 65,737,048 148.684 .72
Koninklijke PTT Nederland NV (Netherlands) 3,354,800 132.191 .64
Telefonica de Argentina SA, Class B (American Depositary
Receipts) (Argentina) 3,438,050 125.919 .61
Telecom Corp. of New Zealand Ltd. (New Zealand) 16,780,173 85.122
Telecom Corp. of New Zealand Ltd. (1) 6,519,900 33.074
Telecom Corp. of New Zealand Ltd. (American Depositary
Receipts) 63,600 2.576 .59
Telecom Italia SpA, savings shares (Italy) 18,565,116 72.524
Telecom Italia SpA 5,985,000 40.102 .55
Orange PLC (United Kingdom) 24,137,600 86.292 .42
Tele Danmark AS, Class B (Denmark) 1,000,000 52.772
Tele Danmark AS, Class B (American Depositary Receipts) 1,050,400 28.033 .39
Philippine Long Distance Telephone Co. (American Depositary
Receipts) (Philippines) 1,462,500 39.670
Philippine Long Distance Telephone Co., convertible preferred
shares, Series III (Global Depositary Receipts) 400,000 20.900
Philippine Long Distance Telephone Co. 460,000 12.545
Philippine Long Distance Telephone Co., convertible preferred
shares, Series II (Global Depositary Receipts) (1) 220,000 7.040 .39
Telefonica del Peru SA (American Depositary Receipts) (Peru) 2,808,900 66.360 .32
Mahanagar Telephone Nigam Ltd. (India) 7,600,000 53.895 .26
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp.
(American Depositary Receipts) (Indonesia) 1,078,600 28.313
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. 8,550,000 21.868 .24
British Telecommunications PLC (United Kingdom) 7,000,000 46.265 .22
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 277,436 35.720 .17
Portugal Telecom, SA (Portugal) 795,000 34.587 .17
Videsh Sanchar Nigam Ltd. (Global Depositary Receipts) (India) (1) 1,711,309 28.878 .14
SK Telecom Co., Ltd. (South Korea) 40,040 25.458 .12
Deutsche Telekom AG (Germany) 1,213,500 23.551 .11
Telecom Argentina SA, Class B (American Depositary Receipts)
(Argentina) 773,100 23.531 .11
DDI Corp. (Japan) 2,400 12.070 .06
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 105,000 5.644 .03
Banking - 9.89%
Bank of Nova Scotia (Canada) 5,664,100 271.418 1.32
Australia and New Zealand Banking Group Ltd. (Australia) 33,148,675 270.903 1.32
Royal Bank of Canada (Canada) 4,052,700 199.188 .97
Westpac Banking Corp. (Australia) 22,310,130 140.624 .68
HSBC Holdings PLC (Hong Kong) 3,960,000 132.560
HSBC Holdings PLC (United Kingdom) 172,223 6.117 .67
Lloyds TSB Group PLC (United Kingdom) 9,670,000 130.166 .63
Sakura Bank, Ltd. (Japan) 20,969,000 100.408
Sakura Finance (Bermuda) Trust, convertible preference share
units 269 12.925 .55
Banco de Santander, SA (Spain) 3,240,000 106.619 .52
ABN AMRO Holding NV (Netherlands) 4,919,500 99.897 .49
Bank of Scotland (United Kingdom) 9,145,000 75.571 .37
Fuji Bank, Ltd. (Japan) 6,000,000 66.224
Fuji International Finance (Bermuda) Trust, convertible
preference share units 260 6.036 .35
STB Cayman Capital Ltd., 0.50% convertible debentures 2007
(Japan) Y5,925,000,000 54.677 .27
Bank of Tokyo-Mitsubishi, Ltd. (Japan) 1,151,000 21.969
MBL International Finance, 3.00% convertible debentures
2002 (Bermuda) $15,000,000 16.284 .19
Grupo Financiero Banamex Accival, SA de CV, Class B (Mexico) (2) 9,530,000 30.065
Grupo Financiero Banamex Accival, SA de CV, Class L (2) 2,207,777 6.482 .18
Tokai Bank, Ltd. (Japan) 4,000,000 33.162
TB Finance (Cayman) Ltd., convertible preference share units 186 3.033 .18
Allied Irish Banks, PLC (Ireland) 3,750,000 33.107 .16
National Australia Bank Ltd. (Australia) 2,060,606 31.680 .15
Unibanco-Uniao de Bancos Brasileiros SA (Global Depositary
Receipts) (Brazil) (2) 800,000 29.300 .14
Asahi Bank, Ltd. (Japan) 4,850,000 28.174 .14
Barclays PLC (United Kingdom) 1,000,000 27.026 .13
Toyo Trust and Banking Co., Ltd. (Japan) 2,800,000 21.819 .11
Kookmin Bank (Global Depositary Receipts) (South Korea) (1) 1,530,858 19.901 .10
Hanil Bank (South Korea) 4,241,600 19.559 .10
MTI Capital (Cayman) Ltd., 0.50% convertible debentures 2007
(Japan) Y1,150,000,000 9.603
Mitsui Trust and Banking Co., Ltd. 1,475,000 7.357 .08
Korea First Bank (South Korea) 2,010,000 7.397 .04
Bangkok Bank PLC, 3.25% convertible debentures 2004 (Thailand) $10,000,000 5.900 .03
Shinhan Bank (South Korea) 454,473 3.823 .02
Health & Personal Care- 7.01%
Novartis AG (Switzerland) 311,733 479.226 2.33
AB Astra, Class A (Sweden) 18,147,733 335.736
AB Astra, Class B 2,832,267 50.152 1.88
Zeneca Group PLC (United Kingdom) 5,563,000 181.504 .88
Elan Corp., PLC (American Depositary Receipts) (Ireland) (2) 2,294,600 114.873 .56
Glaxo Wellcome PLC (United Kingdom) 2,185,000 49.178
Glaxo Wellcome PLC (American Depositary Receipts) 1,000,000 44.937 .46
SmithKline Beecham PLC (American Depositary Receipts)
(United Kingdom) 1,000,000 48.875 .24
Teva Pharmaceutical Industries Ltd. (American Depositary
Receipts) (Israel) 800,000 44.600 .22
Shiseido Co., Ltd. (Japan) 2,714,000 43.694 .21
Sankyo Co., Ltd. (Japan) 941,000 32.642 .16
Synthelabo (France) 128,000 15.189 .07
Multi-Industry- 5.34%
Siebe PLC (United Kingdom) 11,500,000 231.734 1.13
Orkla AS, Class A (Norway) 1,974,000 174.989
Orkla AS, Class B 500,000 40.583 1.05
Hutchison Whampoa Ltd. (Hong Kong) 19,430,000 191.482 .93
Lend Lease Corp. Ltd. (Australia) 4,341,120 103.132 .50
Swire Pacific Ltd., Class A (Hong Kong) 12,905,000 98.824 .48
Jardine Strategic Holdings Ltd. (Singapore - Incorporated in
Bermuda) 14,375,000 56.350
Jardine Strategic Holdings Ltd., 7.50% convertible Eurobonds
2049 $11,631,000 14.425
Jardine Strategic Holdings Ltd. (American Depositary Receipts) 300,000 2.352
Jardine Strategic Holdings Ltd., warrants, expire 1998 (2) 1,375,000 .866 .36
Imasco Ltd. (Canada) 1,530,000 46.348 .23
Industriforvaltnings AB Kinnevik, Class B (Sweden) 1,059,111 23.722
Industriforvaltnings AB Kinnevik, Class A 302,260 6.750 .15
Williams Holdings PLC (United Kingdom) 4,800,000 28.587 .14
Ayala Corp., Class B (Philippines) 40,232,525 16.518 .08
First Pacific Co. Ltd. (Hong Kong) 15,928,210 15.955 .08
Brierley Investments Ltd. (New Zealand) 16,000,000 13.835
Brierley Investments Ltd., convertible preferred shares 1,500,000 1.201 .07
Incentive AB, Class B (Sweden) 150,000 14.371 .07
B.A.T Industries PLC (United Kingdom) 1,220,000 10.692 .05
Groupe Bruxelles Lambert SA, warrants, expire 1998 (Belgium) (2) 126,900 4.756 .02
Broadcasting & Publishing - 5.05%
News Corp. Ltd. (American Depositary Receipts) (Australia) 3,958,200 80.896
News Corp. Ltd., preferred shares 11,114,764 49.202
News Corp. Ltd. 8,705,032 44.633
News Corp. Ltd., preferred shares (American Depositary
Receipts) 1,181,600 21.195 .95
Mediaset SpA(Italy) (1) 16,174,544 83.661
Mediaset SpA 8,093,000 41.860 .61
CANAL + (France) 518,015 92.290 .45
Publishing & Broadcasting Ltd. (Australia) 13,428,725 88.535 .43
Grupo Televisa, SA (American Depositary Receipts) (Mexico) (2) 1,791,800 64.169 .31
Thomson Corp. (Canada) 2,150,000 52.524 .26
SOFTBANK CORP. (Japan) 1,188,400 48.621 .24
Carlton Communications PLC (United Kingdom) 5,441,250 45.184 .22
Television Broadcasts Ltd. (Hong Kong) 11,467,000 40.608 .20
Pathe (France) 157,300 31.880 .15
Reed International PLC (United Kingdom) 2,311,268 19.603
Elsevier NV (Netherlands) 725,000 10.558 .15
Independent Newspapers, PLC (Ireland) 5,040,644 29.306 .14
Daily Mail and General Trust PLC, Class A (United Kingdom) 969,000 28.503 .14
Pearson PLC (United Kingdom) 2,210,000 27.947 .14
Nippon Television Network Corp. (Japan) 75,000 27.013 .13
South China Morning Post (Holdings) Ltd. (Hong Kong) 24,000,000 21.868 .11
Wolters Kluwer NV (Netherlands) 154,659 20.916 .10
NV Verenigd Bezit VNU (Netherlands) 850,000 19.787 .10
Television Francaise 1 SA (France) 165,000 14.308 .07
United News & Media PLC, 6.125% convertible debentures
2003 (United Kingdom) L7,400,000 13.153 .06
Modern Times Group MTG AB, Class B (Sweden) (2) 1,059,111 8.257
Modern Times Group MTG AB, Class A (2) 302,260 2.317 .05
Singapore Press Holdings Ltd. (Singapore) 510,000 7.502 .04
Automobiles - 4.52%
Bayerische Motoren Werke AG (Germany) 281,909 240.683
Bayerische Motoren Werke AG, preferred shares 43,636 25.406 1.29
Honda Motor Co., Ltd. (Japan) 4,884,000 170.636 .83
Volvo AB, Class B (Sweden) 5,125,000 147.299 .72
Toyota Motor Corp. (Japan) 4,718,000 144.868 .70
Suzuki Motor Corp. (Japan) 9,539,000 91.828 .45
Peugeot SA (France) 300,000 39.655 .19
Volkswagen AG (Germany) 34,400 23.952 .12
Edaran Otomobil Nasional Bhd. (Malaysia) 3,060,000 12.266 .06
Hyundai Motor Co. (Global Depositary Receipts) (South Korea) (1) 940,000 6.439
Hyundai Motor Co. (Global Depositary Receipts) 800,000 5.480 .06
Daimler-Benz AG, 4.125% convertible debentures 2003 (Germany) (1) DM13,522,000 11.740 .06
Regie Nationale des Usines Renault, SA (France) (2) 300,000 8.920 .04
Energy Sources - 4.25%
TOTAL, Class B (France) 1,177,461 135.141
TOTAL, Class B (American Depositary Receipts) 1,033,547 59.235 .94
Royal Dutch Petroleum Co. (Netherlands) 1,600,000 89.812
Royal Dutch Petroleum Co. (New York Registered Shares) 460,000 25.530
'Shell' Transport and Trading Co., PLC (New York Registered
Shares) (United Kingdom) 675,000 30.037 .71
Elf Aquitaine (France) 850,000 113.793 .55
ENI SpA (Italy) 7,500,000 47.351
ENI SpA (American Depositary Receipts) 550,000 34.547 .40
Suncor Energy Inc. (Canada) 2,000,000 72.675 .35
Sasol Ltd. (South Africa) 4,169,940 57.555 .28
Repsol SA (American Depositary Receipts) (Spain) 1,150,000 49.881 .24
Broken Hill Proprietary Co. Ltd. (Australia) 3,532,246 41.151 .20
Woodside Petroleum Ltd. (Australia) 4,200,000 40.081 .19
YPF SA, Class D (American Depositary Receipts) (Argentina) 967,000 35.658 .17
Norsk Hydro AS (Norway) 265,000 15.842 .08
Petrofina SA (Belgium) 40,000 15.711 .08
Oil Cos Lukoil (American Depositary Receipts) (Russia) 124,600 12.236 .06
Beverages & Tobacco - 3.67%
Panamerican Beverages, Inc., Class A (Mexico) 3,322,800 129.797 .63
Asahi Breweries, Ltd. (Japan) 6,060,000 97.563
Asahi Breweries, Ltd., 1.00% convertible debentures 2003 Y924,000,000 12.844
Asahi Breweries, Ltd., 0.90% convertible debentures 2001 Y520,000,000 7.168
Asahi Breweries, Ltd., 0.95% convertible debentures 2002 Y410,000,000 5.682 .60
Coca-Cola Amatil Ltd. (Australia) 10,809,635 115.665 .56
Foster's Brewing Group Ltd. (Australia) 52,800,000 111.318 .54
Seagram Co. Ltd. (Canada) 1,700,000 59.925 .29
South African Breweries Ltd. (South Africa) 1,975,646 57.402 .27
Cia. Cervejaria Brahma, preferred shares (Brazil) 50,000,000 38.412 .19
Swedish Match AB (Sweden) 12,000,000 38.375 .19
San Miguel Corp., Class B (Philippines) 17,781,120 28.940 .13
LVMH Moet Hennessy Louis Vuitton (France) 116,000 24.725 .12
ITC Ltd. (India) 1,100,000 18.740 .09
PT Hanjaya Mandala Sampoerna (Indonesia) 4,530,000 9.394 .05
Lion Nathan Ltd. (New Zealand) 1,199,600 2.935 .01
Electronic Components - 3.52%
Rohm Co., Ltd. (Japan) 1,878,000 221.308 1.08
Kyocera Corp. (Japan) 1,979,500 129.612 .63
Murata Manufacturing Co., Ltd. (Japan) 2,886,000 125.020 .61
Hoya Corp. (Japan) 2,294,000 77.482 .38
ASM Lithography Holding NV (Netherlands) (2) 700,000 70.578 .34
Hirose Electric Co., Ltd. (Japan) 885,000 65.292 .32
LG Semicon Co., Ltd. (South Korea) 596,650 20.128 .10
Delta Electronics Industrial Co., 0.50% convertible
debentures 2004 (Taiwan) 7,250,000 11.600 .06
Insurance- 2.96%
ING Groep NV (Netherlands) 6,322,572 291.184
ING Groep NV, warrants, expire 2001 (2) 1,210,000 14.084 1.48
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 7,651,295 72.675 .35
PartnerRe Holdings Ltd. (Incorporated in Bermuda) 1,600,000 68.900 .33
Union des Assurances Federales (France) 482,500 51.463 .25
Corporacion Mapfre, CIR, SA (Spain) 889,382 50.155 .24
GIO Australia Holdings Ltd. (Australia) 10,106,349 30.020 .15
CKAG Colonia Konzern AG (Germany) 284,880 25.543
CKAG Colonia Konzern AG, preferred shares 15,530 1.375 .13
Yasuda Fire and Marine Insurance Co., Ltd. (Japan) 1,190,000 7.021 .03
Food & Household Products - 2.89%
Nestle SA (Switzerland) 142,225 198.641 .97
Reckitt & Colman PLC (United Kingdom) 7,106,250 109.132 .53
Groupe Danone (France) 628,224 99.288 .48
Unilever PLC (United Kingdom) 2,700,000 79.029 .38
Cadbury Schweppes PLC (United Kingdom) 8,109,282 78.072 .38
PT Indofood Sukses Makmur (Indonesia) 24,271,300 29.640 .14
Universal Robina Corp. (Philippines) 7,600,000 1.103 .01
Utilities: Electric & Gas - 2.78%
Centrais Eletricas Brasileiras SA - ELETROBRAS, preferred
nominative (American Depositary Receipts) (Brazil) 3,200,500 89.614
Centrais Eletricas Brasileiras SA - ELETROBRAS, ordinary
nominative (American Depositary Receipts) 1,869,000 49.295 .68
Cia. Energetica de Minas Gerais - CEMIG (American
Depositary Receipts) (Brazil) 1,040,171 57.860
Cia. Energetica de Minas Gerais - CEMIG, preferred
nominative 421,000,000 23.508
Cia. Energetica de Minas Gerais - CEMIG, ordinary
nominative 70,708,000 3.342
Cia. Energetica de Minas Gerais - CEMIG (American
Depositary Receipts) (1) 21,300 1.185 .42
National Power PLC (United Kingdom) 7,135,400 65.587 .32
Scottish Power PLC (United Kingdom) 7,504,300 58.077 .28
Hongkong Electric Holdings Ltd. (Hong Kong) 14,481,500 53.904 .26
CESP - Cia. Energetica de Sao Paulo, ordinary nominative
(Brazil) (2) 273,620,000 19.323
CESP - Cia. Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts) (2) 723,420 17.995
CESP - Cia. Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts) (1),(2) 83,664 2.081 .19
Huaneng Power International, Inc., Class N (American
Depositary Receipts) (People's Republic of China) (2) 925,000 22.431
Huaneng Power International, Inc., 1.75% convertible
debentures 2004 $12,000,000 12.570 .17
Unified Energy Systems of Russia (Global Depositary Receipts)
(Russia) (1),(2) 750,000 29.625 .14
Korea Electric Power Corp. (South Korea) 938,280 20.862
Korea Electric Power Corp., 5.00% convertible debentures 2001 5,000,000 4.681
Korea Electric Power Corp. (American Depositary Receipts) 186,000 2.557 .14
Enersis SA (American Depositary Receipts) (Chile) 741,800 27.493 .13
Manila Electric Co., Class B (Philippines) 2,968,931 10.361 .05
Merchandising - 2.55%
Kingfisher PLC (United Kingdom) 6,865,000 94.070 .46
Cifra, SA de CV, Class B (Mexico) 16,576,400 39.232
Cifra, SA de CV, Class A 15,158,176 33.962
Cifra, SA de CV, Class C 8,402,600 18.502 .45
Tesco PLC (United Kingdom) 9,793,974 74.374 .36
Safeway PLC (United Kingdom) 10,210,400 66.330 .32
Dixons Group PLC (United Kingdom) 4,000,000 41.641 .20
Woolworths Ltd. (Australia) 8,547,678 27.787 .13
Amway Japan Ltd. (American Depositary Receipts) (Japan) 715,000 10.278
Amway Japan Ltd. 335,000 9.619
AJL PEPS Trust 465,000 7.411 .13
George Weston Ltd. (Canada) 300,000 23.084 .11
Coles Myer Ltd. (Australia) 4,830,611 22.749 .11
H & M Hennes & Mauritz AB, Class B (Sweden) 500,000 21.903 .11
Ito-Yokado Co., Ltd. (Japan) 280,000 15.197 .07
Carrefour SA (France) 20,000 12.498 .06
WHSmith Group PLC (United Kingdom) 1,500,000 8.909 .04
Business & Public Services - 2.54%
Rentokil Group PLC (United Kingdom) 34,340,000 142.719 .69
Brambles Industries Ltd. (Australia) 3,765,000 78.423 .38
Hyder PLC (United Kingdom) 3,850,000 56.950 .28
United Utilities PLC (United Kingdom) 4,331,427 53.585 .26
Thames Water PLC (United Kingdom) 3,039,925 42.833 .21
Reuters Holdings PLC (United Kingdom) 2,916,700 34.601 .17
Quebecor Printing Inc. (Canada) 1,492,000 27.000 .13
Havas SA (France) 336,678 22.918 .11
Securitas AB, Class B (Sweden) 777,000 18.533 .09
Dimension Data Holdings Ltd. (South Africa) 3,825,000 16.023 .08
Secom Co., Ltd. (Japan) 220,000 14.880 .07
Severn Trent PLC (United Kingdom) 704,247 10.451
Severn Trent PLC, Class B preferred shares 741,313 .431 .05
Thorn PLC (United Kingdom) 1,664,805 3.717 .02
Machinery & Engineering - 2.37%
Mannesmann AG (Germany) 690,950 330.144 1.60
Valmet Oy (Finland) 3,400,000 55.659 .27
Kvaerner AS, Class A (Norway) 910,000 53.822 .26
Komori Corp. (Japan) 1,237,000 25.869 .13
Kawasaki Heavy Industries, Ltd. (Japan) 6,800,000 23.532 .11
Electrical & Electronic - 2.27%
Nokia Corp., Class K (Finland) 1,113,000 105.529
Nokia Corp., Class A 265,000 25.226 .64
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 1,886,000 90.842
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) 660,000 31.639 .60
Premier Farnell PLC (United Kingdom) 13,403,700 115.199 .56
ABB AB, Class B (American Depositary Receipts) (Sweden) 210,000 29.715
ABB AB, Class A 1,450,000 20.598
ABB AB, Class B 900,000 12.725 .31
Northern Telecom Ltd. (Canada) 230,000 23.906 .12
Johnson Electric Holdings Ltd. (Hong Kong - Incorporated
in Bermuda) 3,074,556 8.385 .04
Metals: Nonferrous - 1.61%
Pechiney, Class A (France) 2,667,686 128.996 .63
WMC Ltd. (Australia) 9,638,646 45.251 .22
Inco Ltd. (Canada) 1,490,000 37.343 .18
Cominco Ltd. (Canada) 1,445,300 36.132 .18
Alcan Aluminium Ltd. (Canada) 700,000 24.325 .12
Rio Tinto PLC (formerly RTZ Corp. PLC) (United Kingdom) 1,284,680 20.538 .10
Teck Corp., Class B (Canada) 900,000 18.567 .09
Billiton PLC (United Kingdom) (2) 2,760,000 10.647 .05
Noranda Inc. (Canada) 450,000 8.990 .04
Recreation & Other Consumer Products - 1.41%
Nintendo Co., Ltd. (Japan) 1,589,500 149.057 .72
Fuji Photo Film Co., Ltd. (Japan) 1,200,000 49.593 .24
Bajaj Auto Ltd. (India) 2,047,500 31.478
Bajaj Auto Ltd. (Global Depositary Receipts) 50,000 1.462 .16
Sony Music Entertainment (Japan) Inc. (Japan) 697,000 24.294 .12
Square Co. Ltd. (Japan) 416,300 14.614 .07
PolyGram NV (New York Registered Shares) (Netherlands) 250,000 14.359 .07
EMI Group PLC (United Kingdom) 661,975 6.512
EMI Group PLC, Class B preferred shares 367,764 .680 .03
Industrial Components - 1.29%
Cie. Generale des Etablissements Michelin, Class B (France) 1,346,598 76.708 .37
Minebea Co., Ltd. (Japan) 6,578,000 73.150 .36
Bridgestone Corp. (Japan) 2,240,000 53.909 .26
Morgan Crucible Co. PLC (United Kingdom) 3,408,240 28.192 .14
Sumitomo Electric Industries, Ltd. (Japan) 1,742,000 25.010 .12
Calsonic Corp. (Japan) 1,609,000 9.080 .04
Forest Products & Paper - 1.18%
Koninklijke KNP BT (Netherlands) 3,430,000 93.847 .46
UPM-Kymmene Corp. (Finland) 2,300,000 63.986
UPM-Kymmene Corp., 8.25% convertible debentures 2043 FIM40,000,000 11.166 .37
AssiDoman AB (Sweden) 828,000 28.339 .14
Carter Holt Harvey Ltd. (New Zealand) 8,224,336 17.857 .09
Stora Kopparbergs Bergslags AB, Class B (Sweden) 850,000 14.433 .07
MAYR-MELNHOF Karton AG (Austria) 160,000 9.556 .05
Real Estate - 1.11%
Cheung Kong (Holdings) Ltd. (Hong Kong) 8,560,000 96.252 .47
Sun Hung Kai Properties Ltd. (Hong Kong) 7,150,000 84.094 .41
Mitsui Fudosan Co., Ltd. (Japan) 1,480,000 18.055 .09
Mitsubishi Estate Co., Ltd. (Japan) 900,000 13.145 .06
Ayala Land, Inc., Class B (Philippines) 24,039,700 11.808 .06
C & P Homes, Inc. (Philippines) 41,630,500 4.029 .02
Data Processing & Reproduction - 1.01%
Fujitsu Ltd. (Japan) 8,446,000 105.838 .51
Acer Inc. (Taiwan) (2) 40,763,000 79.927
Acer Inc. (Global Depositary Receipts) (1),(2) 534,700 5.307
Acer Inc. (Global Depositary Receipts) (2) 504,900 5.024 .44
Olivetti SpA (Italy) (2) 21,056,000 11.604 .06
Building Materials & Components - 0.94%
Cemex, SA de CV, ordinary participation certificates (Mexico) 17,420,650 91.522
Cemex, SA de CV, Class B 2,210,625 13.251
Cemex, SA de CV, Class A 1,793,075 9.328 .55
Holderbank Financiere Glaris Ltd. (Switzerland) 58,938 56.070 .27
Redland PLC (United Kingdom) 6,790,000 25.699 .12
Appliances & Household Durables - 0.94%
Sony Corp. (Japan) 1,665,500 157.566 .77
Samsung Electronics Co., Ltd. (South Korea) 188,351 18.246
Samsung Electronics Co., Ltd., preferred shares (Global
Depositary Receipts) 76,000 1.833
Samsung Electronics Co., Ltd. preferred shares 14,060 .567 .10
Philips Electronics NV (Netherlands) 165,000 14.001 .07
Electronic Instruments - 0.87%
Tokyo Electron Ltd. (Japan) 1,667,000 101.957 .50
ADVANTEST CORP. (Japan) 771,600 76.200 .37
Transportation: Shipping - 0.58%
Bergesen d.y. AS, Class B (Norway) 1,130,000 34.932
Bergesen d.y. AS, Class A 542,800 16.703 .25
Stolt-Nielsen SA, Class B (American Depositary Receipts)
(Incorporated in Luxembourg) 845,000 24.505
Stolt-Nielsen SA 837,000 22.285 .23
Nippon Yusen KK (Japan) 5,908,000 19.857 .10
Chemicals - 0.51%
BOC Group PLC (United Kingdom) 2,730,000 48.667 .24
L'Air Liquide (France) 229,946 37.936 .18
AGA AB, Class B (Sweden) 1,100,000 17.734 .09
Miscellaneous Materials & Commodities - 0.44%
Cie. de Saint-Gobain (France) 331,567 51.282 .25
SGL Carbon AG (Germany) 179,200 26.389 .13
De Beers Consolidated Mines Ltd. (South Africa) 410,000 11.979 .06
Aerospace & Military Technology - 0.30%
British Aerospace PLC (United Kingdom) 1,330,000 35.709 .17
Bombardier Inc., Class B (Canada) 1,307,000 26.490 .13
Metals: Steel - 0.26%
Kawasaki Steel Corp. (Japan) 27,641,000 52.988 .26
Wholesale & International Trade - 0.17%
Mitsui & Co., Ltd. (Japan) 2,700,000 21.264 .10
Mitsubishi Corp. (Japan) 1,447,000 14.050 .07
Gold Mines - 0.16%
Ashanti Goldfields Co. Ltd. (Global Depositary Receipts)
(Ghana) 2,040,222 22.442 .11
Normandy Mining Ltd. (Australia) 8,930,177 11.322 .05
Leisure & Tourism - 0.15%
Granada Group PLC (United Kingdom) 1,631,313 23.065 .10
Mandarin Oriental International Ltd. (Singapore -
Incorporated in Bermuda) 9,670,312 9.767 .05
Euro Disney SCA (France) (2) 573,700 .790 .00
Transportation: Airlines - 0.13%
Qantas Airways Ltd. (Australia) 12,900,000 26.150 .13
Financial Services - 0.05%
ORIX Corp. (Japan) 125,500 9.561 .05
Transportation: Rail & Road - 0.02%
Guangshen Railway Co. Ltd., Class H (American Depositary
Receipts) (People's Republic of China) 286,400 4.922 .02
Miscellaneous - 2.97%
Other equity-type securities in initial period of acquisition 611.093 2.97
-------------------
TOTAL EQUITY-TYPE SECURITIES (cost: $13,128.057 million) 18,082.381 87.88
-------------------
BONDS
Principal
Amount
(Millions)
Argentina Government- 0.17%
Argentina 11.375% January 2017 $14.500 16.914 .09
Argentina 11.75% February 2007 ARP14.000 15.816 .08
Argentina 6.75% March 2005 (3) $.860 .819 .00
Broadcasting & Publishing- 0.07%
Grupo Televisa, SA 0%/13.25% May 2008 (4) 20.000 15.050 .07
-------------------
TOTAL BONDS (cost: $42.705 million) 48.599 .24
-------------------
SHORT-TERM SECURITIES
Principal Market Percent
Amount Value of Net
(Millions) (Millions) Assets
Corporate Short-Term Notes- 9.19%
Societe Generale North America 5.49%-5.53% due 10/2-12/18/97 $104.100 $103.067 .50%
Bank of Montreal 5.48%-5.50% due 10/3-10/29/97 99.900 99.651 .48
Caisse d'amortissement de la dette sociale 5.49%-5.50% due
10/20-12/12/97 100.000 99.300 .48
Halifax PLC 5.46%-5.49% due 10/21-12/3/97 99.700 99.000 .48
Svenska Handelsbanken Group 5.47%-5.55% due 10/8-11/13/97 99.300 98.895 .48
Lucent Technologies Inc. 5.48%-5.50% due 10/8-12/12/97 95.200 94.409 .46
Nestle Capital Corp. 5.44%-5.50% due 10/1-12/23/97 92.800 92.319 .45
Toronto-Dominion Holdings USA Inc. 5.50%-5.53% due 10/9-11/4/97 90.000 89.730 .44
American Express Credit Corp. 5.49%-5.52% due 10/28-12/4/97 85.550 84.901 .41
E.I. du Pont de Nemours and Co. 5.47%-5.48% due 10/10-12/16/97 81.000 80.573 .39
Toyota Motor Credit Corp. 5.47%-5.50% due 10/2-11/4/97 80.200 79.947 .39
Ford Credit Europe PLC 5.50%-5.54% due 10/9-12/11/97 77.400 76.898 .37
Daimler-Benz North America Corp. 5.49%-5.58% due 10/6-10/24/97 76.285 76.130 .37
Commonwealth Bank of Australia 5.47%-5.54% due 10/2-11/17/97 76.100 75.866 .37
General Electric Capital Corp. 5.50%-5.54% due 10/6-12/10/97 76.120 75.584 .37
Abbey National North America 5.50%-5.54% due 10/7-12/24/97 74.800 74.503 .36
Canada Bills 5.44%-5.48% due 10/2-11/3/97 67.300 67.130 .33
ANZ (Delaware) Inc. 5.49%-5.50% due 10/20-10/28/97 61.900 61.447 .30
National Australia Funding (Delaware) Inc. 5.48%-5.50% due
10/6-12/2/97 60.300 59.925 .29
ABN AMRO North America Finance Inc. 5.48%-5.50% due
11/20-12/16/97 56.700 56.130 .27
Electricite de France 5.45%-5.47% due 10/24-11/5/97 55.000 54.752 .27
Rank Xerox Capital (Europe) PLC 5.47%-5.50% due 10/3-10/17/97 52.555 52.474 .26
International Lease Finance Corp. 5.49%-5.50% due 10/22-11/21/97 49.800 49.537 .24
Xerox Corp. 5.46%-5.48% due 10/10-10/27/97 46.000 45.851 .22
International Business Machines Corp. 5.48%-5.49% due
10/16-10/30/97 43.700 43.575 .21
Federal Agency Discount Notes- 1.25%
Freddie Mac (formerly Federal Home Loan
Mortgage Corp.) 5.40%-5.47% due 10/7-12/1/97 132.173 131.595 .64
Fannie Mae (formerly Federal National
Mortgage Assn) 5.40%-5.45% due 11/4-12/23/97 127.000 125.847 .61
U.S. Treasury Obligations - 0.51%
5.065% February 1998 107.000 105.004 .51
Certificates of Deposit- 0.51%
Canadian Imperial Bank of Commerce 5.55%-5.61% due 11/3-12/2/97 $79.300 79.715 .39
Abbey National PLC 5.57% due 11/5/97 25.000 24.999 .12
Non-U.S. Currency- 0.05%
New Taiwanese Dollar NT$276.375 9.677 .05
.
-------------------
TOTAL SHORT-TERM SECURITIES (cost: $2,368.675 million) 2,368.431 11.51
-------------------
TOTAL INVESTMENT SECURITIES (cost: $15,539.437 million) 20,499.411 99.63
Excess of cash and receivables over payables 76.609 .37
-------------------
NET ASSETS ######### 100.00%
===================
1 Purchased in a private placement transaction; resale to the
public may require registration or sale only to qualified
institutional buyers.
2 Non-income-producing securities.
3 Coupon rate changes periodically.
4 Step bond; coupon rate will increase at a later date.
See Notes to Financial Statements
</TABLE>
<TABLE>
EuroPacific Growth Fund
Financial Statements
- ---------------------------------------------- --------------- --------------
<S> <C> <C>
Statement of Assets and Liabilities
at September 30, 1997 (dollars in millions) (unaudited)
- ---------------------------------------------- ---------------- -------------
ASSETS:
Investment securities at market
(cost: $15,539.437) $20,499.411
Cash 1.417
Receivables for-
Sales of investments $104.650
Sales of fund's shares 43.901
Forward currency contracts 3.055
Dividends and accrued interest 62.128 213.734
------------------- ---------------
20,714.562
LIABILITIES:
Payables for-
Purchases of investments 26.114
Repurchases of fund's shares 96.403
Management services 7.675
Accrued expenses 8.350 138.542
------------------- ---------------
NET ASSETS AT SEPTEMBER 30, 1997-
Equivalent to $29.69 per share on
693,137,478 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $20,576.020
===============
Statement of Operations
for six month ended September 30, 1997 (dollars in millions) (unaudited)
- ---------------------------------------------- --------------- -------------
INVESTMENT INCOME:
Income:
Dividends $216.922
Interest 74.181 $291.103
-------------------
Expenses:
Management services fee 44.754
Distribution expenses 22.568
Transfer agent fee 6.620
Reports to shareholders .762
Registration statement and prospectus 1.363
Postage, stationery and supplies .920
Trustees' fees .084
Auditing and legal fees .082
Custodian fee 4.996
Taxes other than federal income tax .000
Other expenses .131 82.280
-------------------- ---------------
Net investment income 208.823
---------------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 690.976
Net increase in unrealized appreciation
on investments 1,718.046
Net decrease in unrealized appreciation
on forward currency contracts (4.927) 1,713.119
------------------------------------
Net realized gain and unrealized appreciation
on investments 2,404.095
---------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $2,612.918
===============
See Notes to Financial Statements
- ---------------------------------------------- ------------------- ---------------
Statement of Changes in Net Assets Six months Year ended
(dollars in millions) ended 9/30/97* 3/31/97
- ---------------------------------------------- ------------------- ---------------
OPERATIONS:
Net investment income $ 208.823 $ 258.101
Net realized gain on investments 690.976 799.451
Net increase in unrealized appreciation
on investments 1,713.119 1,098.239
------------------- ---------------
Net increase in net assets
resulting from operations 2,612.918 2,155.791
------------------- ---------------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (51.507) (236.013)
Distributions from net realized gain on
investments (573.017) (503.619)
------------------- ---------------
Total dividends and distributions (624.524) (739.632)
------------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 101,963,628
and 195,364,825 shares, respectively 2,882.100 4,950.543
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 21,807,622 and 28,349,252 shares,
respectively 600.758 704.707
Cost of shares repurchased: 57,531,701
and 104,945,629 shares, respectively (1,632.275) (2,669.767)
------------------- ---------------
Net increase in net assets resulting from
capital share transactions 1,850.583 2,985.483
------------------- ---------------
TOTAL INCREASE IN NET ASSETS 3,838.977 4,401.642
NET ASSETS:
Beginning of period 16,737.043 12,335.401
----------------- ---------------
End of period (including undistributed
net investment income: $208.085
and $50.769, respectively) $20,576.020 $16,737.043
==================== ===============
*unaudited
See Notes to Financial Statements
</TABLE>
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 fund seeks long-term capital appreciation by investing in the securities of
companies based outside the United States. The following paragraphs summarize
the significant accounting policies consistently followed by the fund in the
preparation of its financial statements:
Equity-type securities traded on a national securities exchange (or
reported on the Nasdaq national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price. Long-term and short-term
securities with original or remaining maturities in excess of 60 days,
including forward currency contracts, are valued at the mean of their quoted
bid and asked prices. Short-term securities with 60 days or less to maturity
are valued at amortized cost, which approximates market value. Securities for
which market quotations are not readily available are valued at fair value by
the Board of Trustees or a committee thereof.
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, cash balances 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.
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 fund
records realized gains or losses at the time the forward contract is closed or
offset by a matching contract. 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.
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 10%. 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, 1997, net unrealized appreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $4,956,965,000, net of accumulated deferred taxes totaling
$3,009,000 on unrealized appreciation of Indian securities, of which
$5,602,270,000 related to appreciated securities and $642,296,000 related to
depreciated securities. During the six months ended September 30, 1997, the
fund realized, on a tax basis, a net capital gain of $685,965,000 on securities
transactions. Net gains related to non-U.S. currency and other transactions of
$5,011,000 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 $15,539,437,000 at September 30, 1997.
3. The fee of $44,754,000 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;
0.46% of such assets in excess of $6.5 billion but not exceeding $10.5 billion;
0.45% of such assets in excess of $10.5 billion but not exceeding $17.0
billion; and 0.445% of such assets in excess of $17.0 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,
1997, distribution expenses under the Plan were $22,568,000. As of September
30, 1997, accrued and unpaid distribution expenses were $3,190,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $6,620,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $6,118,000 (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,
1997, aggregate amounts deferred and earnings thereon were $356,000.
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, 1997, accumulated undistributed net realized gain on
investments was $690,983,000 and paid-in capital was $14,040,475,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $3,223,906,000 and $2,175,772,000, respectively,
during the six months ended September 30, 1997.
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 $4,996,000 includes $35,000 that was paid by these credits
rather than in cash.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended September 30, 1997, such non-U.S. taxes were $26,398,000.
Net realized currency losses on dividends, interest, withholding taxes
reclaimable and sales of non-U.S. bonds and notes were $8,199,000 for the six
months ended September 30, 1997.
At September 30, 1997, the fund had outstanding forward currency contracts
to sell non-U.S. currencies as follows:
Non-U.S. Currency Sale Contracts
<TABLE>
<CAPTION>
Non-U.S. Currency Contract Amounts U.S. Valuation at
Sale Contracts 9/30/97
Non-U.S. U.S. Amount Unrealized
Appreciation
<S> <C> <C> <C> <C>
Japanese Yen expiring Y6,035,175,000 $53,940,500 $50,885,709 $3,054,791
10/28/97 to 9/9/98
</TABLE>
<TABLE>
Per-Share Data and Ratios /1/
Six months
ended Year Ended March 31
9/30/97 /2/ 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $26.70 $24.28 $20.89 $21.95 $17.64 $16.64
------------------------------------------------------------------
Income From Investment
Operations:
Net investment income .30 .46 .46 .35 .24 .22
Net realized gain and change
in unrealized appreciation
on investments 3.66 3.28 3.63 (.19) 4.37 1.04
------------------------------------------------------ ----------
Total income from investment
operations 3.96 3.74 4.09 .16 4.61 1.26
------------------------------------------------------ ----------
Less Distributions:
Dividends from net investment
income (.08) (.41) (.49) (.317) (.187) (.222)
Dividends from net realized
non-U.S. currency gains /3/ (.01) (.03) - (.003) (.043) (.038)
Distributions from net
realized gains (.88) (.88) (.21) (.90) (.07) -
------------------------------------------------------ ----------
Total distributions (.97) (1.32) (.70) (1.22) (.30) (.26)
------------------------------------------------------ ----------
Net Asset Value, End of Period $ 29.69 $ 26.70 $ 24.28 $ 20.89 $ 21.95 $ 17.64
====================================================== ==========
Total Return /4/ 15.11% /5/ 15.88% 19.84% .71% 26.27% 7.69%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $20,576 $16,737 $12,335 $8,588 $6,429 $2,992
Ratio of expenses to average
net assets .44% /5/ .90% .95% .97% .99% 1.10%
Ratio of net income to average
net assets 1.11% /5/ 1.77% 2.09% 1.80% 1.13% 1.40%
Average commissions paid per
share /6/ .26c 1.36c 1.10c .21c .08c .25c
Portfolio turnover rate 16.98% /5/ 25.82% 21.77% 16.02% 21.37% 10.35%
/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/ Calculated without deducting
a sales charge. The maximum
sales charge is 5.75% of the
fund's offering price.
/5/ Based on operations for the period
shown 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 separately reflected
in the fund's statement of operations.
Shares traded on a principal basis
(without commissions), 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>
EUROPACIFIC GROWTH FUND
BOARD OF TRUSTEES
ELISABETH ALLISON, Cambridge, Massachusetts
Administrative Director, ANZI, Ltd.
(financial publishing and consulting);
publishing consultant, Harvard Medical School
MICHAEL R. BONSIGNORE, Minneapolis, Minnesota
Chairman and Chief Executive Officer,
Honeywell Inc.
DAVID I. FISHER, Los Angeles, California
Chairman of the Board,
The Capital Group Companies, Inc.
ROBERT A. FOX, Livingston, California
President and Chief Executive Officer,
Foster Farms Inc.
ALAN GREENWAY, La Jolla, California
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
President and Chief Executive Officer,
IMPAC (management consulting services);
former 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
Director, Capital Research and Management 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
Director, Capital Research and Management Company
ROBERT W. LOVELACE, Los Angeles, California
Vice President of the fund
Executive Vice President and Director,
Capital Research Company
JANET A. MCKINLEY, New York, New York
Vice President of the fund
Director, Capital Research and Management Company
VINCENT P. CORTI, Los Angeles, California
Secretary of the fund
Vice President - Fund Business Management Group,
Capital Research and Management Company
R. MARCIA GOULD, Brea, California
Treasurer of the fund
Vice President - Fund Business Management Group,
Capital Research and Management Company
Steven N. Kearsley retired as Treasurer of the fund effective May 20, 1997. He
had been an officer of the fund since 1984. The Trustees thank him for his many
contributions.
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
American Funds Service Company
(Please write to the address nearest you.)
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, N.A.
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, 1997, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180, OR VISIT WWW.AMERICANFUNDS.COM ON THE
WORLD WIDE WEB.
Litho in USA BDA/AL/3587
Lit. No. EUPAC-013-1197
Printed on recycled paper
[The American Funds Group (R)]
