[THE AMERICAN FUNDS GROUP(R)]
EUROPACIFIC
GROWTH FUND
OUR FIFTEENTH YEAR
1999 Semi-Annual Report
for the six months ended September 30
[cover illustration: satellite of earth]
EUROPACIFIC GROWTH FUND(R) seeks long-term capital appreciation by investing in
the securities of companies based outside the United States. About 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.
EuroPacific is one of the 29 mutual funds in The American Funds Group,(r) the
nation's third-largest mutual fund family. For more than six decades, Capital
Research and Management Company, the American Funds adviser, has invested with
a long-term focus based on thorough research and attention to risk.
A LOOK AT THE FUND'S RESULTS
(through September 30, 1999, with all distributions reinvested)
Six months +14.3%
12 months +43.3
Lifetime (since April 16, 1984) +958.1
Average annual compound return over lifetime +16.5
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, 1999, assuming payment of the 5.75% maximum sales charge
at the beginning of the stated periods:
<TABLE>
<CAPTION>
<S> <C> <C>
Average Annual
Total Return Compound Return
TEN YEARS +232.64% +12.77%
FIVE YEARS +89.16 +13.60
ONE YEAR +35.10 -
</TABLE>
Sales charges are lower for accounts of $50,000 or more.
Figures shown are past results and are not predictive of future results. Share
price and return will vary, so you may lose money. Investing for short periods
makes losses more likely. Investments are not FDIC-insured, nor are they
deposits of, or guaranteed by, a bank or any other entity. Investing outside
the United States is subject to additional risks, such as currency
fluctuations, political instability, differing securities regulations and
periods of illiquidity, which are detailed in the fund's prospectus.
FELLOW SHAREHOLDERS:
EuroPacific Growth Fund made excellent progress during the first half of its
fiscal year. For the six months ended September 30, the value of your shares
increased 14.3%, assuming you reinvested both the income dividend of 10.5 cents
a share and the capital gain distribution of 15 cents a share that were paid in
June. These latest results came on the heels of even stronger returns for the
previous six months, bringing EuroPacific's 12-month total return to a
remarkable 43.3%.
Your fund finished the six months well ahead of relevant benchmarks. The Morgan
Stanley Capital International (MSCI) EAFE(r) (Europe, Australasia, Far East)
Index, which measures 20 markets outside the United States, rose 7.2% on a
reinvested basis. EuroPacific also appreciably outpaced the 9.7% average return
of the 632 international funds tracked by Lipper, Inc.
Over the longer term, the fund's results are equally impressive: It gained
958.1% for an average annual compound return of 16.5% since beginning
operations in mid-April 1984. During that time, the EAFE index rose 681.1%, an
average of 14.2% a year; the Lipper average for the 14 international funds in
existence over EuroPacific's lifetime was 579.8%, or 13.1% a year.
ASIA SHINES.
International equity markets continued to advance during the six months, fueled
by glimmers of economic recovery in Asia and a wave of merger activity
throughout the world. Interestingly, unlike as in recent periods, that strength
did not extend to the United States, where concerns about rising interest rates
and a potential buildup of inflationary pressures pushed stock prices down
moderately in the last quarter. By the close of the period, those concerns had
spread to markets outside the U.S., trimming returns for international stocks
as well.
Asia was the center of investor attention during the six months. Encouraged by
the region's rapid turnaround, investors enthusiastically bid up prices of
Asian stocks, particularly technology issues. U.S. investors received an extra
boost from a strengthening in the Japanese currency; stock prices rose 12.2% in
yen, but 24.7% when translated into U.S. dollars./1/ As we had been adding to
our Japanese investments quite early in the year, both the currency
appreciation and the rally in stock prices proved a boon for the fund. As of
September 30, Japanese stocks accounted for 22% of net assets, the highest
percentage since 1988.
/1/Unless otherwise indicated, country returns are based on MSCI indexes,
expressed in dollar terms and assume reinvestment of dividends.
Elsewhere around the Pacific Basin, stock prices in Hong Kong, Taiwan and
Canada also finished high. South Korea was the region's largest gainer; stocks
rose a remarkable 48.7%, albeit from a deeply depressed base.
[Begin Sidebar]
EuroPacific's six-month gain came on the heels of even stronger returns for the
previous six months.
[End Sidebar]
Not surprisingly, Asian companies dominated the list of EuroPacific's top
gainers for the six months. Most were technology-related businesses, which have
benefited from a pick-up in demand for semiconductors and other electronic
components. Among the fund's larger holdings, Samsung Electronics, Rohm and
Murata all posted exceptionally strong gains. Two Japanese banks, Fuji and
Sakura, more than doubled in price. Both institutions are taking steps to
improve profitability and otherwise shore up operations.
EUROPE STRUGGLES.
European markets, by comparison, tended to be lackluster. To varying degrees,
countries in the European Union are grappling with high unemployment rates,
which have dampened growth. The U.K. (-2.1%) is struggling with the opposite
problem: keeping its economy from overheating. Still, pockets of optimism are
emerging, and we remain enthusiastic about Europe's prospects down the line.
Already, in France (+8.9%), consumer confidence has risen; manufacturing is up
in Germany, boosting stock prices 4.5%. Mergers are continuing at a record pace
across the continent, creating exciting opportunities for companies that can
thrive in the new pan-European marketplace.
[Begin Sidebar]
WHERE THE FUND'S ASSETS WERE INVESTED
(percent invested by country)
EuroPacific invests primarily in the stocks of companies based in Europe and
the Pacific Basin.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EAFE
EuroPacific Growth Fund Index*
(9/30/99) (3/31/99) (9/30/99)
EUROPE
United Kingdom 14.7% 15.4% 20.5%
Germany 7.5 7.0 9.4
France 5.4 5.6 9.4
Netherlands 4.0 4.8 5.4
Sweden 3.5 5.5 2.2
Italy 2.9 4.4 4.1
Switzerland 2.2 3.2 6.5
Finland 1.8 2.6 1.8
Norway 1.1 1.1 .4
Ireland 1.1 .9 .5
Denmark .8 .9 .8
Spain .7 .8 2.7
Other Europe .7 .6 2.0
46.4 52.8 65.7
PACIFIC BASIN
ASIA
Japan 22.1 13.9 28.3
Australia 5.2 6.1 2.6
South Korea 3.0 1.4 -
Taiwan 2.7 1.4 -
Hong Kong 1.2 1.4 2.2
Philippines .5 1.0 -
Other Asia 1.0 .8 1.2
THE AMERICAS
Canada 3.5 4.0 -
Mexico 2.9 3.1 -
Other Americas .3 .5 -
42.4 33.6 34.3
OTHER
Brazil .9 1.1 -
South Africa .8 .9 -
India .5 .5 -
Other Countries 1.4 1.7 -
3.6 4.2 -
Cash & Equivalents 7.6 9.4 -
Total 100.0% 100.0% 100.0%
</TABLE>
*Weighted by market capitalization
[End Sidebar]
A FOCUS ON COMPANIES.
As we have often mentioned, our primary focus is on individual companies rather
than geographic areas. The portfolio's largest investments generally reflect
our strongest convictions about specific businesses we believe provide
exceptional value and have attractive prospects for long-term growth.
[Begin Sidebar]
As we had been adding to our Japanese investments earlier, both the currency
appreciation and the market rally proved a boon for the fund.
[End Sidebar]
Given that emphasis, we are pleased to note that most of the fund's 10 largest
holdings advanced during the six months, making a substantial impact on
results. In addition to the technology companies mentioned before, other big
gainers included Sony, Ericsson and Mannesmann, the German mobile phone
operator. On the other side of the ledger, AstraZeneca, the recently merged
pharmaceutical entity based in the U.K., declined in price, as did News Corp.
and Telecom Italia.
As the list of holdings following this letter makes clear, the focus on
individual companies leads to broad diversification. On September 30,
EuroPacific held stocks of nearly 240 companies based in 37 countries. In
keeping with its name, close to half of net assets were invested in European
companies, with slightly more than 40% in the Pacific Basin. About 8% of net
assets were held in cash and equivalents.
LOOKING FORWARD.
The current vigor of many international markets contrasts strikingly with the
gloom of a year ago. At that time, Asia's difficulties had cast a shadow on
global stock prices. Since then, the situation has changed considerably. The
surprising depth and speed of Asia's turnaround have restored investor
optimism, and worldwide growth seems to be back on track.
Nonetheless, there are reasons to be cautious. Japan's economy, which has
typically anchored the rest of Asia, is still in a very fragile state.
Throughout the region, recovery will be arduous, likely requiring that many
dearly held, culturally ingrained practices be abandoned. While we are
optimistic about Asia's future, we are concerned that stock prices may have
gotten ahead of themselves. Worrying, too, is the prospect of rising interest
rates in the U.S. and Europe, which could dampen global earnings and stock
valuations in the near term.
Therefore, while a 14% six-month return and a 12-month return of 43% are
gratifying indeed, we would certainly not expect a repeat of these
extraordinary gains any time soon. We have always measured the fund's success
over years, not months, and we would urge shareholders to maintain that same
long-term perspective.
We look forward to reporting to you six months from now.
Cordially,
/s/Gina H. Despres /s/Mark Denning
Gina H. Despres Mark Denning
Chairman of the Board President
November 12, 1999
<TABLE>
EuroPacific Growth Fund
Investment Portfolio, September 30, 1999
<S> <C> <C> <C>
[begin pie chart for industry diversification]
Largest Percent
Individual of Net
Industry Diversification Holdings Assets
Percent of Net Assets
9.80% Diversified Telecommunication Services Mannesmann 3.64
8.94% Banking AstraZeneca 2.70
7.28% Electronic Components Samsung Electronics 1.89
7.22% Wireless Telecommunication Services Rohm 1.80
6.33% Electrical & Electronics Telefonos de Mexico 1.54
52.24% Other Industries Ericsson 1.53
0.63% Bonds & Notes Murata Manufacturing 1.52
7.56% Cash and Equivalents Telecom Italia 1.44
[end pie chart] Sony 1.24
News Corp. 1.18
Shares or Market Percent
Principal Value of Net
EQUITY SECURITIES (common and perferred Amount (Million Assets
stocks and convertible debentures)
- -------------------------------------------- -------- ----------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 9.80%
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 5,147,000 366.724
Telefonos de Mexico, SA de CV, Class L 9,612,500 34.231 1.54
Telecom Italia SpA, nonconvertible savings shares (Italy) 46,514,800 234.508
Telecom Italia SpA, ordinary shares 16,100,000 138.944 1.44
Deutsche Telekom AG (Germany) 5,761,300 236.472 .91
COLT Telecom Group PLC (United Kingdom)(1) 7,696,000 183.069
COLT Telecom Group PLC 2.00% convertible debentures 2005 DM5,000,000 4.368 .72
Telefonica, SA (Spain) 11,566,494 185.335 .72
Tele Danmark AS (Denmark) 1,994,400 119.062
Tele Danmark AS, Class B (ADR) 2,024,200 59.967 .69
Koninklijke PTT Nederland NV (Netherlands) 3,316,584 145.499 .56
Swisscom AG (Switzerland) 406,810 127.060 .49
Videsh Sanchar Nigam Ltd. (GDR) (India)(2) 3,781,159 53.220
Videsh Sanchar Nigam Ltd. (GDR) 780,150 10.981
Videsh Sanchar Nigam Ltd. 450,000 10.338 .29
Telecom Corp. of New Zealand Ltd. (New Zealand) 13,453,900 53.061
Telecom Corp. of New Zealand Ltd. (2) 4,057,000 16.000
Telecom Corp. of New Zealand Ltd. (ADR) 25,000 .800 .27
France Telecom, SA (France) 700,000 61.493 .24
British Telecommunications PLC (United Kingdom) 4,000,000 60.722 .24
Hellenic Telecommunications Organization SA (Greece) 2,466,000 57.645 .22
Portugal Telecom, SA (Portugal)(1) 1,330,000 55.412 .21
Compania de Telecomunicaciones de Chile SA (ADR) 3,051,273 55.114 .21
(Chile)
Magyar Tavkozlesi Rt. (ADR) (Hungary) 1,905,500 51.925 .20
Teleglobe Inc. (Canada) 3,100,000 47.949 .18
Mahanagar Telephone Nigam Ltd. (India) 6,850,000 28.955
Mahanagar Telephone Nigam Ltd. (GDR) (2) 570,600 5.777 .13
Telefonica del Peru SA, Class B (ADR) (Peru) 2,408,900 32.370 .12
Telefonica de Argentina SA, Class B (ADR) (Argentina) 1,189,400 31.370 .12
Philippine Long Distance Telephone Co. (ADR) (Philippines) 1,256,094 27.320
Philippine Long Distance Telephone Co., convertible 60,000 2.490 .11
preferred shares, Series III (GDR)
Perusahaan Perseroan (Persero) PT Indonesian 7,290,500 9.826
Satellite Corp. (Indonesia)
Perusahaan Perseroan (Persero) PT Indonesian 353,400 4.771 .06
Satellite Corp. (ADR)
Telstra Corp. Ltd. (Australia) 2,800,000 14.508 .06
Telecom Argentina SA, Class B (ADR) (Argentina) 439,300 11.724 .05
Nippon Telegraph and Telephone Corp. (Japan) (1) 440 5.418 .02
BANKING - 8.94%
Sakura Bank, Ltd. (Japan) 37,369,000 281.023
Sakura Finance (Bermuda) Trust, convertible 1,614,000,000 23.517 1.17
preference share units
Bank of Nova Scotia (Canada) 12,098,200 259.671 1.00
ABN AMRO Holding NV (Netherlands) 9,977,594 224.443 .86
Westpac Banking Corp. (Australia) 25,452,151 156.967 .61
Fuji Bank, Ltd. (Japan) 12,871,000 156.562 .60
Banque Nationale de Paris (France) 1,511,750 120.795
Banque Nationale de Paris, guaranteed value 464,750 3.865 .48
certificates, expire 2002 (1)
HSBC Holdings PLC (United Kingdom) 10,634,802 121.849 .47
Asahi Bank, Ltd. (Japan) 15,834,000 113.865 .44
Australia and New Zealand Banking Group Ltd. (Australia) 14,893,887 99.597 .38
Bangkok Bank PCL (Thailand)(1) 47,874,100 94.157 .36
STB Cayman Capital, Ltd. 0.50% convertible YEN5,925,000,000 93.570 .36
debentures 2007 (Japan)
ForeningsSparbanken AB, Class A (Sweden) 5,700,000 93.138 .36
Bank of Scotland (United Kingdom) 7,385,000 87.452 .34
Royal Bank of Canada (Canada) 1,752,700 72.731 .28
Tokai Bank, Ltd. (Japan) 9,662,000 69.845 .27
Hang Seng Bank Ltd. (Hong Kong) 6,095,500 64.543 .25
Commonwealth Bank of Australia (Australia) 3,666,248 57.763 .22
Toronto-Dominion Bank (Canada) 1,223,700 23.722 .09
Sumitomo Bank, Ltd. (Japan) 1,200,000 18.048 .07
National Australia Bank Ltd. (Australia) 1,225,714 17.937 .07
Barclays PLC (United Kingdom) 522,400 15.303 .06
Unidanmark A/S, Class A (Denmark) 212,000 14.390 .06
Toyo Trust and Banking Co., Ltd. (Japan) 2,800,000 13.897 .05
MBL International Finance (Bermuda) Trust 3.00% $10,000,000 11.825 .05
convertible debentures 2002 (Bermuda)
Unibanco-Uniao de Bancos Brasileiros SA, units 600,000 10.613 .04
(GDR) (Brazil)
ELECTRONIC COMPONENTS - 7.28%
Samsung Electronics Co., Ltd. (South Korea) 3,034,811 491.659 1.89
Rohm Co., Ltd. (Japan) 2,235,000 467.463 1.80
Murata Manufacturing Co., Ltd. (Japan) 3,920,000 394.285 1.52
Hon Hai Precision Industry Co. Ltd. (Taiwan)(1) 34,160,000 224.495 .86
Hoya Corp. (Japan) 2,294,000 138.873 .54
Hirose Electric Co., Ltd. (Japan) 840,000 132.262 .51
Keyence Corp. (Japan) 154,100 41.285 .16
WIRELESS TELECOMMUNICATION SERVICES - 7.22%
Mannesmann AG (ADR) (Germany) 4,907,500 785.200
Mannesmann AG 1,000,000 159.915 3.64
Orange PLC (United Kingdom)(1) 15,274,500 300.984 1.16
Telecom Italia Mobile SpA (Italy) 14,805,000 91.529
Telecom Italia Mobile SpA, savings shares 20,705,000 75.668 .64
DDI Corp. (Japan) 21,755 163.602 .63
NTT Mobile Communications Network, Inc. (Japan) 7,395 145.981 .56
Vodafone AirTouch PLC (United Kingdom) 4,274,948 100.912
Vodafone AirTouch PLC (ADR) 105,000 24.964 .49
SK Telecom Co., Ltd. (South Korea) 8,058 7.455
SK Telecom Co., Ltd. (ADR) 684,235 7.056 .06
Telesp Celular SA, preferred nominative (Brazil) 194,412,100 10.126
Telesp Celular SA, ordinary nominative 39,540,000 1.421 .04
ELECTRICAL & ELECTRONICS - 6.33%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 9,080,100 283.352
Telefonaktiebolaget LM Ericsson, Class B (ADR) 3,620,000 113.125 1.53
NEC Corp. (Japan) 13,050,000 263.134 1.01
Nokia Corp., Class A (ADR) (Finland) 1,600,000 143.700
Nokia Corp., Class A 1,230,000 110.281 .98
Matsushita Communication Industrial Co., Ltd. (Japan) 1,379,000 153.611 .59
Toshiba Corp. (Japan) 17,100,000 127.470 .49
Hitachi, Ltd. (Japan) 10,670,000 118.355 .46
ECI Telecom Ltd. (Israel) 4,115,000 101.589 .39
Siemens AG (Germany) 1,000,000 82.676 .32
Premier Farnell PLC (United Kingdom) 13,567,800 63.209 .24
Nortel Networks Corp. (formerly Northern Telecom 920,000 46.920 .18
Ltd.) (Canada)
Elektrim SA 3.75% convertible debentures 2004 (Poland) EURO38,000,000 36.461 .14
HEALTH & PERSONAL CARE - 5.79%
AstraZeneca PLC (United Kingdom) 16,772,292 699.976 2.70
Elan Corp., PLC (ADR) (Ireland)(1) 7,974,800 267.654 1.03
Novartis AG (Switzerland) 149,866 222.638 .86
Glaxo Wellcome PLC (United Kingdom) 2,185,000 56.642
Glaxo Wellcome PLC (ADR) 1,000,000 52.000 .42
Fujisawa Pharmaceutical Co. Ltd. (Japan) 4,352,000 84.683 .32
SmithKline Beecham PLC (ADR) (United Kingdom) 850,000 48.981 .19
Sanofi-Synthelabo SA (formerly Synthelabo) (France)(1) 665,600 28.384 .11
Nycomed Amersham PLC (United Kingdom) 4,700,000 28.064 .11
Shiseido Co., Ltd. (Japan) 995,000 14.872 .05
BROADCASTING & PUBLISHING - 5.33%
News Corp. Ltd. (ADR) (Australia) 3,958,200 112.561
News Corp. Ltd., preferred 15,455,486 101.840
News Corp. Ltd. 8,740,437 61.311
News Corp. Ltd., preferred (ADR) 1,181,600 31.534 1.18
Mediaset SpA (Italy)(2) 9,174,544 92.978
Mediaset SpA 8,093,000 82.017 .67
CANAL + (France) 2,720,060 162.682 .63
Grupo Televisa, SA, ordinary participation 3,994,400 159.526 .61
certificates (ADR) (Mexico)(1)
Nippon Television Network Corp. (Japan) 165,990 118.587 .46
Fuji Television Network Inc. (Japan) 9,195 65.000 .25
Pearson PLC (United Kingdom) 2,460,000 51.801 .20
Pathe (France) 495,000 51.242 .20
Thomson Corp. (Canada) 1,660,000 46.601 .18
Television Broadcasts Ltd. (Hong Kong) 10,677,000 45.634 .17
Modern Times Group MTG AB, Class B (ADR) (Sweden)(1) 211,822 33.044
Modern Times Group MTG AB, Class A (1) 302,260 8.727 .16
Publishing & Broadcasting Ltd. (Australia) 6,929,789 41.367 .16
Arnoldo Mondadori Editore SpA (Italy) 1,950,000 33.938 .13
SOFTBANK CORP. (Japan) 80,000 30.457 .12
Daily Mail and General Trust PLC, Class A 395,000 21.458 .08
(United Kingdom)
United News & Media PLC 6.125% convertible GBP7,400,000 12.273 .05
debentures 2003 (United Kingdom)
Independent Newspapers, PLC (Ireland) 2,249,202 11.869 .05
Societe Europeenne des Satellites, SA (FDR) 57,800 7.518 .03
(Luxembourg)(1)
AUTOMOBILES - 4.45%
Bayerische Motoren Werke AG (Germany) 9,970,480 281.683
Bayerische Motoren Werke AG, preferred 1,418,676 20.040 1.16
Suzuki Motor Corp. (Japan) 14,565,000 236.726 .91
Volvo AB, Class B (Sweden) 8,170,000 232.367 .90
Honda Motor Co., Ltd. (Japan) 3,510,000 147.157 .57
Peugeot SA (France) 500,000 100.320 .39
Mitsubishi Motors Corp. (Japan)(1) 17,820,000 96.822 .37
Nissan Motor Co., Ltd. (Japan)(1) 4,000,000 24.253 .09
Porsche AG, preferred shares (Germany) 5,450 14.874 .06
MERCHANDISING - 3.78%
Dixons Group PLC (United Kingdom) 14,830,400 264.890 1.02
Ito-Yokado Co., Ltd. (Japan) 2,150,000 177.853 .68
Carrefour SA (France) 588,000 94.218 .36
Kingfisher PLC (United Kingdom) 6,862,231 73.886 .28
Cifra, SA de CV, Class V (Mexico)(1) 34,737,918 54.609
Cifra, SA de CV, Class C (1) 7,537,600 11.624 .26
Loblaw Companies Ltd. (Canada) 2,638,400 65.888 .25
Tesco PLC (United Kingdom) 17,744,600 54.856 .21
EM.TV & Merchandising AG (Germany) 1,000,000 43.603 .17
H & M Hennes & Mauritz AB, Class B (Sweden) 1,500,000 38.055 .15
Koninklijke Ahold NV (Netherlands) 788,735 25.983
Koninklijke Ahold NV 3.00% convertible debentures 2003 $9,750,000 5.461 .12
Safeway PLC (United Kingdom) 7,615,000 27.852 .11
Coles Myer Ltd. (Australia) 5,311,229 27.748 .11
George Weston Ltd. (Canada) 350,000 12.878 .05
Amway Japan Ltd. (ADR) (Japan) 581,250 2.616 .01
BUSINESS & PUBLIC SERVICES - 3.60%
Reuters Group PLC (United Kingdom) 12,494,933 138.231 .53
TNT Post Groep NV (Netherlands) 5,190,107 132.243 .51
Rentokil Initial PLC (United Kingdom) 36,360,900 128.508 .49
Brambles Industries Ltd. (Australia) 4,005,000 115.933 .45
Vivendi SA (France) 980,738 68.955 .26
Hikari Tsushin, Inc. (Japan) 107,000 65.379 .25
United Utilities PLC (United Kingdom) 4,978,414 53.644 .21
Securitas AB, Class B (Sweden) 3,108,000 46.967 .18
Hyder PLC (United Kingdom) 3,850,000 34.460 .13
Adecco SA (Switzerland)(1) 55,000 30.796 .12
ALTRAN TECHNOLOGIES (France) 100,000 30.117 .12
Thames Water PLC (United Kingdom) 1,869,931 29.109 .11
Hays PLC (United Kingdom) 2,600,000 28.013 .11
Dimension Data Holdings Ltd. (South Africa)(1) 5,267,818 20.966 .08
Ratin A/S (Denmark) 110,000 12.107 .05
ENERGY SOURCES - 2.99%
Broken Hill Proprietary Co. Ltd. (Australia) 16,359,195 188.374 .73
Elf Aquitaine (France) 840,000 146.866 .56
TOTAL FINA SA, Class B (France) 545,693 68.614
TOTAL FINA SA, Class B (ADR) 828,807 52.577 .47
Royal Dutch Petroleum Co. (Netherlands) 1,000,000 58.102
Royal Dutch Petroleum Co. (New York Registered Shares) 280,000 16.538
"Shell" Transport and Trading Co., PLC (New York 675,000 30.713 .41
Registered) (United Kingdom)
Sasol Ltd. (South Africa) 13,213,700 101.873 .39
Norsk Hydro AS (Norway) 1,650,000 70.085
Norsk Hydro AS (ADR) 500,000 21.500 .35
Petro-Canada (Canada) 1,400,000 21.225 .08
MULTI-INDUSTRY - 2.91%
Thyssen Krupp AG (Germany) 8,405,000 168.907 .65
Orkla AS, Class A (Norway) 7,896,000 120.148
Orkla AS, Class B 2,000,000 26.547 .56
Invensys PLC (formerly BTR Siebe PLC) (United Kingdom) 20,600,000 98.456 .38
Lend Lease Corp. Ltd. (Australia) 6,689,640 81.617 .31
Hutchison Whampoa Ltd. (Hong Kong) 6,935,000 64.504 .25
Preussag AG (Germany) 1,217,596 61.399 .24
Anglo American PLC (United Kingdom)(1) 700,000 39.272 .15
Lagardere Groupe SCA (France) 920,000 38.242 .15
TI Group PLC (United Kingdom) 3,197,300 23.020 .09
Ayala Corp. (Philippines) 74,866,500 17.983 .07
PT Astra International (Indonesia)(1) 54,000,000 16.083 .06
INSURANCE - 2.18%
ING Groep NV (Netherlands) 5,283,829 287.288 1.11
PartnerRe Holdings Ltd. (Singapore - Incorporated 2,031,900 70.609 .27
in Bermuda)
Union des Assurances Federales (France) 493,960 61.613 .24
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 7,048,439 54.746 .21
Allied Zurich PLC (United Kingdom) 4,065,000 47.411 .18
Swiss Life-Glaxo Wellcome 2.00% convertible $15,000,000 14.307
debentures 2003 (Switzerland)(2)
Swiss Life-Mannesmann 1.50% convertible $8,000,000 12.240 .10
debentures 2003 (2)
AEGON NV (Netherlands) 195,000 16.797 .07
BEVERAGES & TOBACCO - 1.77%
Foster's Brewing Group Ltd. (Australia) 56,703,800 159.812 .62
South African Breweries PLC (United Kingdom)(1) 7,947,287 67.504 .26
Panamerican Beverages, Inc., Class A (Mexico) 2,881,600 47.727 .19
Swedish Match AB (Sweden) 11,076,924 41.371 .16
Coca-Cola Amatil Ltd. (Australia) 9,534,119 33.464 .13
Ito En, Ltd. (Japan) 370,000 33.042 .13
Coca-Cola West Japan Co. Ltd. (Japan) 500,000 23.031 .09
Coca-Cola Beverages PLC (United Kingdom)(1) 9,567,371 19.057 .07
Lion Nathan Ltd. (New Zealand) 8,000,000 16.747 .06
Asahi Breweries, Ltd. (Japan) 1,056,000 16.170 .06
I.T.C. Ltd. (India) 372 .007 .00
RECREATION & OTHER CONSUMER PRODUCTS - 1.68%
Nintendo Co., Ltd. (Japan) 1,195,700 190.853 .73
EMI Group PLC (United Kingdom) 10,500,000 75.427 .29
Fuji Photo Film Co., Ltd. (Japan) 2,070,000 71.024 .27
Square Co., Ltd. (Japan) 730,000 53.800 .21
Sony Music Entertainment (Japan) Inc. (Japan) 179,300 22.333 .09
Bajaj Auto Ltd. (India) 2,047,500 21.284
Bajaj Auto Ltd. (GDR) 75,000 .804 .09
APPLIANCES & HOUSEHOLD DURABLES - 1.41%
Sony Corp. (Japan) 2,153,500 322.074 1.24
Koninklijke Philips Electronics NV (Netherlands) 440,000 44.328 .17
DATA PROCESSING & REPRODUCTION - 1.39%
Fujitsu Ltd. (Japan) 8,446,000 263.590 1.01
Acer Inc. (Taiwan)(1) 54,193,750 98.456 .38
FOOD & HOUSEHOLD PRODUCTS - 1.38%
Reckitt & Colman PLC (United Kingdom) 9,241,875 116.007 .44
Nestle SA (Switzerland) 55,000 103.511 .40
Groupe Danone (France) 161,185 39.265 .15
Uni-Charm Corp. (Japan) 460,000 27.804 .11
Cadbury Schweppes PLC (United Kingdom) 4,000,000 27.731 .11
Raisio Group PLC (Finland) 3,771,700 25.453 .10
Benckiser NV, Class B (Netherlands) 301,960 18.784 .07
FOREST PRODUCTS & PAPER - 1.12%
UPM-Kymmene Corp. (Finland) 3,680,800 125.571 .49
Abitibi-Consolidated Inc. (Canada) 9,500,000 114.251 .44
Stora Enso Oyj (Finland) 2,394,843 31.787 .12
AssiDoman AB (Sweden) 1,076,400 19.308 .07
REAL ESTATE - 0.95%
Cheung Kong (Holdings) Ltd. (Hong Kong) 9,688,000 80.756 .31
Sun Hung Kai Properties Ltd. (Hong Kong) 8,150,000 62.165 .24
Hongkong Land Holdings Ltd. (Singapore) 34,363,300 45.016 .17
Ayala Land, Inc. (Philippines) 105,880,000 25.951 .10
Security Capital Global Realty (Luxembourg)(1,2,3) 1,125,000 22.084 .09
Mitsubishi Estate Co., Ltd. (Japan) 1,000,000 10.162 .04
UTILITIES: ELECTRIC & GAS - 0.85%
Manila Electric Co., Class A (GDR) (Philippines)(1,2,3) 3,110,000 35.921
Manila Electric Co., Class B 9,540,381 27.592 .25
National Power PLC (United Kingdom) 7,135,400 55.715 .22
Cia. Energetica de Minas Gerais - CEMIG, 3,433,226 51.928
preferred nominative (ADR) (Brazil)
Cia. Energetica de Minas Gerais - CEMIG, 311,044,152 2.948
ordinary nominative
Cia. Energetica de Minas Gerais - CEMIG, 26,066 .394 .21
preferred nominative (ADR) (2)
Scottish Power PLC (United Kingdom) 2,350,000 21.440 .08
Cia. Paranaense de Energia - COPEL, Class B, 2,018,000 13.243 .05
preferred nominative (ADR) (Brazil)
LIGHT-Servicos de Eletricidade SA (Brazil) 136,661,000 10.144 .04
INDUSTRIAL COMPONENTS - 0.83%
NGK Spark Plug Co., Ltd. (Japan) 6,412,000 61.118 .24
Minebea Co., Ltd. (Japan) 4,428,000 56.401 .22
Cie. Generale des Etablissements Michelin, 1,009,444 47.696 .18
Class B (France)
Bridgestone Corp. (Japan) 775,000 21.710 .08
Valeo (France) 240,000 17.386 .07
Morgan Crucible Co. PLC (United Kingdom) 2,550,836 10.792 .04
MACHINERY & ENGINEERING - 0.82%
Mitsubishi Heavy Industries, Ltd. (Japan) 21,000,000 80.936 .31
GKN PLC (United Kingdom) 4,330,000 68.117 .26
Metso Oyj (formerly Valmet-Rauma Oyj) (Finland)(1) 3,400,000 38.459 .15
Kvaerner ASA, Class A (Norway)(1) 1,294,720 25.988 .10
BUILDING MATERIALS & COMPONENTS - 0.81%
Cemex, SA de CV, ordinary participation 4,405,091 106.273 .41
certificates, Units (ADR) (Mexico) (1)
TOSTEM CORP. (Japan) 2,200,000 51.495 .20
Holderbank Financiere Glaris Ltd. (Switzerland) 39,566 51.464 .20
FINANCIAL SERVICES - 0.73%
Nichiei Co., Ltd. (Japan) 1,342,900 102.882 .40
ORIX Corp. (Japan) 738,000 80.967
ORIX Corp. 0.375% convertible debentures 2005 YEN600,000,000 6.113 .33
CHEMICALS - 0.73%
BOC Group PLC (United Kingdom) 5,005,000 104.309 .40
L'Air Liquide (France) 261,095 41.475 .16
Bayer AG (Germany) 600,000 23.955 .09
Imperial Chemical Industries PLC (ADR) (United Kingdom) 430,000 18.570 .08
METALS: NONFERROUS - 0.62%
Pechiney, Class A (France) 2,878,675 159.586 .62
LEISURE & TOURISM - 0.54%
Granada Group PLC (United Kingdom) 9,697,532 85.922 .33
Seagram Co. Ltd. (Canada) 1,200,000 54.600 .21
AEROSPACE & MILITARY TECHNOLOGY - 0.54%
Bombardier Inc., Class B (Canada) 8,400,000 139.370 .54
MISCELLANEOUS MATERIALS & COMMODITIES - 0.36%
De Beers Consolidated Mines Ltd. (South Africa)(1) 3,368,500 92.750 .36
WHOLESALE & INTERNATIONAL TRADE - 0.34%
Buhrmann NV (Netherlands) 2,744,000 46.221 .18
Mitsui & Co., Ltd. (Japan) 5,600,000 42.429 .16
ELECTRONIC INSTRUMENTS - 0.34%
ADVANTEST CORP. (Japan) 445,200 64.449 .25
Tokyo Electron Ltd. (Japan) 275,000 23.912 .09
TRANSPORTATION: AIRLINES - 0.31%
Deutsche Lufthansa AG (Germany) 3,050,000 55.863 .22
Qantas Airways Ltd. (Australia) 7,818,902 24.485 .09
TRANSPORTATION: SHIPPING - 0.23%
Stolt-Nielsen SA, Class B (ADR) (Incorporated in 1,160,900 19.590
Luxembourg)
Stolt-Nielsen SA 837,000 12.503 .13
Bergesen d.y. AS, Class B (Norway) 1,130,000 17.560
Bergesen d.y. AS, Class A 542,800 8.857 .10
METALS: STEEL - 0.20%
Corus Group PLC (United Kingdom) 19,940,200 50.233 .20
MISCELLANEOUS - 3.26%
Other equity securities in initial period of acquisition 846.377 3.26
----------------
TOTAL EQUITY SECURITIES (cost: $15,715.243 million) 23,829.3 91.81
----------------
BONDS & NOTES
Principal
Amount
(Millions)
BROADCASTING & PUBLISHING - 0.06%
Grupo Televisa, SA 0%/13.25% 2008(4) $20.000 16.850 .06
NON U.S. GOVERNMENT OBLIGATIONS - 0.57%
Brazil (Federal Republic of), Bearer 8.00% 2014 $202.468 126.796 .49
Argentina (Republic of) 11.75% 2007 ARP14.000 11.972 .05
Argentina (Republic of) 11.375% 2017 $7.500 7.069 .03
----------------
TOTAL BONDS & NOTES (cost: $158.228 million) 162.687 .63
----------------
Principal Market Percent
Amount Value of Net
SHORT TERM SECURITIES (Millions) (Million Assets
CORPORATE SHORT-TERM NOTES - 6.41%
CBA (Delaware) Finance Inc. 4.96%-5.33% 120.000 119.685 .46
due 10/1-11/1/1999
KfW International Finance Inc. 5.11%-5.72% 93.500 92.385 .36
due 10/14/1999-1/31/2000
Anz (Delaware) Inc. 5.14%-5.76% due 88.000 87.216 .34
10/6/1999-1/18/2000
France Telecom, SA 5.22%-5.32% due 10/21-11/10/1999 85.000 84.619 .33
Xerox Capital (Europe) PLC 5.22%-5.31% due 84.300 83.730 .32
10/13-12/16/1999
Associates First Capital Finance BV 5.15%-5.31% 80.000 79.609 .31
11/1-11/3/1999
Abbey National North America 5.15%-5.36% due 80.000 79.529 .31
10/15-12/3/1999
Halifax PLC 5.29%-5.35% due 11/22/1999-1/20/2000 80.000 78.863 .30
Toronto-Dominion Holdings USA Inc. 5.38% due 77.000 75.415 .29
2/3-2/7/2000
Westpac Capital Corp. 5.32%-5.33% due 11/4-11/5/1999 75.000 74.595 .29
National Australia Funding (Delaware) Inc. 75.000 73.634 .28
5.33%-5.77% due 1/19-1/27/2000
BP America Inc. 4.75%-5.33% due 10/4/1999-2/1/2000 64.900 63.813 .25
Internationale Nederlanden (U.S.) Funding Corp. 57.700 57.397 .22
5.26%-5.30% due 10/18-11/18/1999
DaimlerChrylser NA Holdings 4.98%-5.65% due 55.700 55.117 .21
10/7/1999-2/11/2000
American Honda Finance Corp. 5.25%-5.26% due 10/12/1999 55.000 54.904 .21
BMW US Capital Corp. 5.12%-5.50% due 10/1-10/22/1999 55.000 54.869 .21
Ford Motor Credit Co. 5.64% due 1/26-2/10/2000 55.300 54.187 .21
Duke Energy Corp. 5.35%-5.66% due 1/21-2/14/2000 55.000 53.873 .21
Cregem North America Inc. 5.29%-5.30% due 11/19/1999 50.000 49.632 .19
Emerson Electric Co. 5.31%-5.67% due 1/24-1/25/2000 50.000 49.072 .19
Merck & Co. Inc. 5.29% due 2/2/2000 50.000 48.998 .19
Svenska Handelsbanken 5.44% due 2/4/2000 50.000 48.980 .19
UBS Finance Delaware LLC 5.12%-5.28% due 10/5-11/18/1999 40.000 39.874 .15
FCE Bank PLC 5.14%-5.35% due 10/21/1999-1/25/2000 39.800 39.334 .15
British Telecommunications PLC 5.68%-5.69% due 3/2/2000 40.000 39.016 .15
Canadian Wheat Board 5.30% due 11/29/1999 25.000 24.780 .09
FEDERAL AGENCY DISCOUNT NOTES - 0.74%
Freddie Mac 5.20%-5.42% due 12/16/1999-2/28/2000 76.200 104.344 .40
Fannie Mae 5.20%-5.40% due 1/20-2/9/2000 89.000 87.368 .34
CERTIFICATES OF DEPOSIT - 0.44%
Canadian Imperial Bank of Commerce 5.20%-5.40% 81.500 81.499 .31
due 10/8-11/17/1999
National Westminster Bank PLC 5.36% due 10/25/1999 33.000 33.000 .13
OTHER - 0.16%
Canada Bills 5.09%-5.22% due 10/19-11/30/1999 43.000 42.697 .16
NON-U.S. CURRENCY - 0.03%
New Taiwanese Dollar NT$200.293 6.328 .03
------------------
TOTAL SHORT-TERM SECURITIES (cost: $2,020.079 million) 2,018.36 7.78
------------------
TOTAL INVESTMENT SECURITIES (cost: $17,893.550 million) 26,010.4 100.22
Excess of payables over cash and receivables 56.340 .22
------------------
NET ASSETS 25,954.0 100.00
(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) Step bond; coupon rate will increase at a later date.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
FDR = Fiduciary Depositary Receipts
See Notes to Financial Statements
</TABLE>
EuroPacific Growth Fund
September 30, 1999
EQUITY SECURITIES APPEARING IN THE PORTFOLIO SINCE MARCH 31, 1999
Adecco
AEGON
Anglo American
Corus
Coca-Cola West Japan
De Beers Consolidated Mines
Deutsche Lufthansa
Elektrim
EM.TV & Merchandising
Hellenic Telecommunications
Hikari Tsushin
Hitachi
Ito En
Ito-Yokado
Keyence
Lion Nathan
Loblaw
Mitsubishi Heavy Industries
National Australia Bank
NEC
Nippon Telegraph and Telephone
Nycomed Amersham
Petro-Canada
Portugal Telecom
Preussag
SOFTBANK
Sumitomo Bank
Thyssen Krupp
Toronto-Dominion Bank
Toshiba
TOSTEM
Uni-Charm
EQUITY SECURITIES ELIMINATED FROM THE PORTFOLIO SINCE MARCH 31, 1999
Allied Irish Banks
Centrais Eletricas Brasileiras - ELETROBRAS
CESP - Cia. Energetica de Sao Paulo
Comparex Holdings
Corporacion Mapfre
ENI
Enersis
Electrofina
Groupe Bruxelles Lambert
Kawasaki Heavy Industries
LG Semicon
Mandarin Oriental
Mazda Motor
Millicom International Cellular
Newcourt Credit
Rank
Royal Bank of Scotland
SAP
San Miguel
Siliconware Precision
TT Tieto Oy
WMC
YPF
<TABLE>
<S> <C> <C>
EuroPacific Growth Fund (unaudited)
Financial Statements
- ---------------------------------------------- ------------------ --------------
Statement of Assets and Liabilities
at September 30, 1999 (dollars in millions)
- ---------------------------------------------- ------------------ -------------
ASSETS:
Investment securities at market
(cost: $17,893.550) $26,010.437
Cash .507
Receivables for-
Sales of investments $17.274
Sales of fund's shares 62.796
Dividends and accrued interest 71.191 151.261
------------------ ---------------
26,162.205
LIABILITIES:
Payables for-
Purchases of investments 125.641
Repurchases of fund's shares 66.450
Management services 9.946
Accrued expenses 6.071 208.108
------------------ ---------------
NET ASSETS AT SEPTEMBER 30, 1999-
Equivalent to $34.25 per share on
757,711,176 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $25,954.097
===============
Statement of Operations (unaudited)
for the six months ended September 30, 1999
- ---------------------------------------------- --------------- -------------
INVESTMENT INCOME:
Income:
Dividends $221.641
Interest 64.979 $286.620
-------------------
Expenses:
Management services fee 56.343
Distribution expenses 30.828
Transfer agent fee 8.947
Reports to shareholders .518
Registration statement and prospectus .369
Postage, stationery and supplies 1.398
Trustees' fees .131
Auditing and legal fees .091
Custodian fee 4.546
Taxes other than federal income tax .034
Other expenses .128 103.333
------------------ ---------------
Net investment income 183.287
---------------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 868.150
Net change in unrealized appreciation on
investments 2,134.542
------------------ ---------------
Net realized gain and unrealized
appreciation on investments 3,002.692
---------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $3,185.979
===============
- ---------------------------------------------- ------------------ ---------------
Statement of Changes in Net Assets Six months Year ended
(dollars in millions) ended 9/30/1999* 3/31/1999
- ---------------------------------------------- -------------------------------------
OPERATIONS:
Net investment income $ 183.287 $ 299.948
Net realized gain on investments 868.150 769.649
Net increase in unrealized appreciation
on investments 2,134.542 523.918
-------------------------------------
Net increase in net assets resulting
from operations 3,185.979 1,593.515
-------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (76.877) (258.117)
Distributions from net realized gain on
investments (109.826) (901.166)
-------------------------------------
Total dividends and distributions (186.703) (1,159.283)
-------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 96,010,537
and 149,373,115 shares, respectively 3,137.010 4,252.412
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 5,768,605 and 39,600,216 shares,
respectively 177.881 1,110.693
Cost of shares repurchased: 75,058,842
and 179,052,856 shares, respectively (2,443.045) (5,030.545)
-------------------------------------
Net increase in net assets resulting from
capital share transactions 871.846 332.560
-------------------------------------
TOTAL INCREASE IN NET ASSETS 3,871.122 766.792
NET ASSETS:
Beginning of period 22,082.975 21,316.183
----------------- -----------------
End of period (including undistributed
net investment income: $171.771
and $65.361, respectively) $25,954.097 $22,082.975
======================================
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
SECURITY VALUATION - Equity securities, including depositary receipts, are
valued at the last reported sale price on the exchange or market on which such
securities are traded, as of the close of business on the day the securities
are being valued or, lacking any sales, at the last available bid price. In
cases where equity securities are traded on more than one exchange, the
securities are valued on the exchange or market determined by the investment
adviser to be the broadest and most representative market, which may be either
a securities exchange or the over-the-counter market. Fixed-income securities
are valued at prices obtained from a pricing service, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued at the mean quoted bid and
asked prices or at prices for securities of comparable maturity, quality and
type. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Short-term securities maturing within 60 days are
valued at amortized cost, which approximates market value. Securities and
assets for which representative market quotations are not readily available are
valued at fair value as determined in good faith by a committee appointed by
the Board of Trustees.
NON-U.S. CURRENCY TRANSLATION - Assets and liabilities initially expressed
in terms of non-U.S. currencies are translated into U.S. dollars at the
prevailing market rates at the end of the reporting period. Purchases and
sales of securities and income and expenses are translated into U.S. dollars at
the prevailing market rates on the dates of such transactions. The effects of
changes in non-U.S. currency exchange rates on investment securities and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
In the event securities are purchased on a delayed delivery or "when-issued"
basis, the fund will instruct the custodian to segregate liquid assets
sufficient to meet its payment obligations in these transactions. Dividend
income is recognized on the ex-dividend date, and interest income is recognized
on an accrual basis. Market discounts, premiums, and original issue discounts
on securities purchased are amortized daily over the expected life of the
security.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions
paid to shareholders are recorded on the ex-dividend date.
FORWARD CURRENCY CONTRACTS - The fund may enter into forward currency
contracts, which represent agreements to exchange currencies of different
countries at specified future dates at specified rates. 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. Risks 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.
2. NON-U.S. INVESTMENTS
INVESTMENT RISK - Investments in securities of non-U.S. issuers in certain
countries involve special investment risks. These risks may include, but are
not limited to, investment and repatriation restrictions, revaluation of
currencies, adverse political, social, and economic developments, government
involvement in the private sector, limited and less reliable investor
information, lack of liquidity, certain local tax law considerations, and
limited regulation of the securities markets.
TAXATION - Net realized gain and net unrealized gain 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 gain and
net unrealized gain. Dividend and interest income is recorded net of non-U.S.
taxes paid. For the six months ended September 30, 1999, such non-U.S. taxes
were $28,216,000.
CURRENCY GAINS AND LOSSES - Net realized currency losses on dividends,
interest, sales of non-U.S. bonds and notes, and other receivables and
payables, on a book basis, were $2,270,000 for the six months ended September
30, 1999.
3. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income and net capital gains for the fiscal year. As a
regulated investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.
As of September 30, 1999, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $8,116,887,000, of which
$8,797,740,000 related to appreciated securities and $680,853,000 related to
depreciated securities. During the six months ended September 30, 1999, the
fund realized, on a tax basis, a net capital gain of $870,736,000 on securities
transactions. Net losses related to non-U.S. currency transactions of
$2,586,000 are treated as an adjustment to ordinary income for federal income
tax purposes. The cost of portfolio securities for federal income tax purposes
was $17,893,550,000 at September 30, 1999.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $56,343,000 for management services
was incurred 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.
DISTRIBUTION EXPENSES - 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, 1999, distribution expenses under the Plan were limited to
$30,828,000. Had no limitation been in effect, the fund would have paid
$34,094,000 in distribution expenses under the Plan. As of September 30, 1999,
accrued and unpaid distribution expenses were $4,460,000.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $6,665,000 (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.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $8,947,000.
DEFERRED TRUSTEES' FEES - 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, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993), net of any
payments to Trustees, were $823,000.
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.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities excluding
short-term securities, of $3,785,063,000 and $2,889,728,000, respectively,
during the six months ended September 30, 1999.
As of September 30, 1999, accumulated undistributed net realized gain on
investments was $895,496,000 and paid-in capital was $16,011,481,000.
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 $4,546,000 includes $60,000 that was paid by these credits
rather than in cash.
At September 30, 1999, the fund had no outstanding forward currency
contracts.
<TABLE>
<S> <C> <C> <C>
Per-Share Data and Ratios Six months
ended Year Ended March 31
9/30/99 (1 1999 1998
Net Asset Value, Beginning of Period $30.21 $29.56 $26.70
--------------------------------
Income From Investment Operations:
Net investment income .24 .42 .45
Net gains or losses on securities (both
realized and unrealized) 4.055 1.85 4.79
--------------------------------
Total from investment operations 4.295 2.27 5.24
-------------------------------
Less Distributions:
Dividends (from net investment income) (.105) (.36) (.433)
Dividends (from net realized non-U.S. currency gains) (2 - - (.017)
Distributions (from capital gains) (.15) (1.26) (1.93)
-------------------------------
Total distributions (.255) (1.62) (2.38)
-------------------------------
Net Asset Value, End of Period $34.25 $30.21 $29.56
==============================
Total Return (3) 14.31% (4) 8.18% 20.97%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $25,954 $22,083 $21,316
Ratio of expenses to average net assets 0.43% (4) .84% .86%
Ratio of net income to average net assets 0.76% (4) 1.45% 1.64%
Portfolio turnover rate 13.15% (4) 31.73% 30.51%
1997 1996 1995
Net Asset Value, Beginning of Period $24.28 $20.89 $21.95
-----------------------------
Income From Investment Operations:
Net investment income .46 .46 .35
Net gains or losses on securities (both
realized and unrealized) 3.28 3.63 (.19)
-----------------------------
Total from investment operations 3.74 4.09 .16
--------- -------------------
Less Distributions:
Dividends (from net investment income) (.41) (.49) (.317)
Dividends (from net realized non-U.S. currency gains) (2 (.03) - (.003)
Distributions (from capital gains) (.88) (.21) (.90)
--------- -------------------
Total distributions (1.32) (.70) (1.22)
--------- -------------------
Net Asset Value, End of Period $26.70 $24.28 $20.89
======== ======== =======
Total Return (3) 15.88% 19.84% .71%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $16,737 $12,335 $8,588
Ratio of expenses to average net assets .90% .95% .97%
Ratio of net income to average net assets 1.77% 2.09% 1.80%
Portfolio turnover rate 25.82% 21.77% 16.02%
(1) Unaudited
(2) Realized non-U.S. currency gains are treated as ordinary
income for federal income tax purposes.
(3) Excludes maximum sales charge of 5.75%.
(4) Based on operations for the period shown
and, accordingly, not representative of a
full year.
</TABLE>
[THE AMERICAN FUNDS GROUP(R)]
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 92821-5823
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
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
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.
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, 1999, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
PREPARING FOR THE YEAR 2000
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all computer systems to process date-related information properly
following the turn of the century. Other preparations continue, including
external monitoring and contingency planning. If you'd like more detailed
information, call Shareholder Services at 800/421-0180, ext. 21, or visit our
Web site at www.americanfunds.com.
Printed on recycled paper
Litho in USA BDC/L/4396
Lit. No. EUPAC-013-1199
