The American Funds Group(r)
[logo and globe]
EuroPacific
Growth Fund
2000 Semi-Annual Report
for the six months ended September 30
Seeing the World From Home
[photograph of field with city signs]
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 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 American Funds, the nation's third-largest mutual
fund family. For nearly seven 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, 2000, with all distributions reinvested)
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<S> <C>
Six months -14.7%
12 months +15.2
Lifetime (since April 16, 1984) +1,119.0
Average annual compound return over lifetime +16.4
</TABLE>
Fund results in this report were calculated for Class A shares at net asset
value (without a sales charge) unless otherwise indicated. Here are the average
annual compound returns on a $1,000 investment with all distributions
reinvested for periods ended September 30, 2000:
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<S> <C> <C> <C>
10 Years 5 Years 1 Year
CLASS A SHARES
reflecting 5.75% maximum sales charge +14.76% +14.92% +8.58%
</TABLE>
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CLASS B SHARES 3/15 - 9/30/2000
reflecting 5% maximum contingent deferred sales -16.40%*
charge (CDSC) (payable only if shares are sold)
not reflecting CDSC -12.00%*
</TABLE>
*Not offered before March 15, 2000. Results are not annualized.
Please see back cover for important information about Class A and B shares.
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.
About our cover: Shareholders from Mexico, Missouri, and other U.S. towns and
cities see the world from home through EuroPacific's portfolio of international
stocks.
FELLOW SHAREHOLDERS:
Since we reported to you last, world markets have retreated sharply, ending a
remarkable run-up in equity prices. Internet stocks, which had accelerated the
boom nearly a year ago, tumbled badly in March, triggering losses throughout
the broader markets. Currency weakness in Europe and elsewhere contributed
significantly to the decline: Virtually every market was down during the six
months when measured in U.S. dollars, leaving investors with few places to
hide.
In this environment, EuroPacific Growth Fund's results were disappointing. For
the six months ended September 30, the value of your investment fell 14.7%.
That was worse than the 12.4% average decline of the 710 international funds
tracked by Lipper Inc.* Both returns trailed the unmanaged Morgan Stanley
Capital International (MSCI) EAFE(r) (Europe, Australasia, Far East) Index,
which measures 20 major markets outside the United States: The index declined
11.6%.
A negative return is always discouraging, particularly for newer shareholders.
The magnitude of the decline, however, was due in part to the timing of our
reporting period, which began shortly after the high for many markets. Indeed,
EuroPacific's six-month decline was more than offset by an exceptional 35.0%
gain during the previous six months; the result over a full 12-month period was
a positive return of 15.2%, assuming reinvestment of the December dividend and
capital gain distribution. That was well ahead of the 3.4% EAFE return and the
10.8% increase in the Lipper average of international funds for the year.
EuroPacific compares favorably over longer time frames as well.
*Lipper averages do not reflect the effects of sales charges.
A GLOBAL BANG ENDS WITH A WHIMPER
Investor frenzy for all things "dot-com" came to a sudden, and dramatic, halt
in late March. To some degree, the rout was sparked by surging oil prices and
other inflationary pressures. In fact, the downturn was not unexpected, given
the wildly unrealistic levels many of these stocks had reached. Unfortunately,
pessimism quickly spread to other sectors that had also ballooned in the
previous half-year.
EuroPacific has not invested in risky Internet stocks and was thus spared the
brunt of the downturn. Nonetheless, virtually all of the fund's
technology-related holdings fell in price, some quite severely. The sector was
further hobbled in late summer by news that demand for personal computers had
softened. Among the fund's larger positions, Rohm, Ericsson, Nokia and Murata
all posted double-digit declines. Samsung Electronics, a maker of low-cost
computer chips, lost more than 40% of its value during the six months, and was
largely responsible for the 29.2% decline in South Korean stock prices.#
The technology sell-off also dragged down telecommunications stocks. European
telephone companies, a substantial component of the fund's portfolio, fared
particularly poorly. Government sales of third-generation wireless licenses in
February and March proved more expensive than anticipated. The prospect of
stretched balance sheets worried investors, who sent the share prices of
Telecom Italia, Deutsche Telekom, France T<UNDEF>l<UNDEF>com and other longtime
holdings reeling. Over the long run, though, telecom holdings have been an
important factor in EuroPacific's success, and we remain optimistic about the
sector. In a number of cases, we used the decline to add to our positions.
# Country returns are based on MSCI indexes for the six months ended September
30, assume reinvestment of dividends, and are expressed in U.S. dollars unless
otherwise indicated.
THE EURO STRUGGLES
Europe's difficulties were aggravated by the continued slide of its common
currency. Despite robust economic growth and lower unemployment throughout the
region, the euro fell nearly 8% during the six months against a seemingly
invincible U.S. dollar. While a weaker currency helped European exporters sell
their goods more cheaply abroad, it compounded market losses for U.S.
investors. In Germany, for example, a 13.6% decline in stock prices translated
into a -20.4% return in dollars; French stocks rose a modest 0.6% for the six
months, but fell 7.2% in dollar terms. The strong dollar nipped returns
elsewhere as well, worsening losses in the U.K. (-7.5%) and Japan (-16.0%), and
whittling a 9.8% gain in Australia to a 2.1% decline in U.S. dollars.
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.
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EAFE
EuroPacific Growth Fund Index*
(9/30/2000) (3/31/2000) (9/30/2000)
EUROPE
United Kingdom 16.0% 17.6% 20.9%
France 5.0 5.1 11.2
Netherlands 3.5 3.5 5.4
Italy 3.3 3.1 4.2
Germany 3.2 4.6 8.4
Sweden 2.7 3.4 3.0
Finland 2.1 2.2 2.6
Ireland 1.8 1.5 .4
Switzerland 1.6 1.3 5.8
Norway 1.2 .8 .4
Spain .6 .7 3.1
Denmark .5 .5 .9
Other Europe 1.0 1.1 1.5
42.5 45.4 67.8
PACIFIC BASIN
ASIA
Japan 20.5 23.2 26.3
Australia 4.8 4.1 2.7
South Korea 3.0 4.5 -
Taiwan 2.5 4.0 -
Hong Kong .9 .7 2.1
China .6 - -
Other Asia 1.1 1.0 1.1
THE AMERICAS
Canada 3.2 3.3 -
Mexico 3.0 3.1 -
Other Americas .1 .2 -
39.7 44.1 32.2
OTHER
Brazil 1.3 .6 -
South Africa .8 .5 -
Other Countries 1.0 1.6 -
3.1 2.7 -
Cash & Equivalents 14.7 7.8 -
TOTAL 100.0% 100.0% 100.0%
</TABLE>
*Weighted by market capitalization.
A FEW BRIGHT SPOTS
In this environment, relatively few of our holdings did well. Still, some
bright spots emerged. Pharmaceuticals rose from their recent doldrums; gainers
included AstraZeneca and Elan, both large holdings in the portfolio. Canadian
stocks, such as The Bank of Nova Scotia, Bombardier and Petro-Canada, also
appreciated. Other investments that ended the six months in the black included
those in typically defensive industries - utilities, banks and insurance
companies - which provided a relatively safe harbor during the period.
[Begin Sidebar]
Experience has taught us that solid, well-managed companies tend to be quite
resilient.
[End Sidebar]
EuroPacific's portfolio is broadly diversified, with holdings in more than 280
companies based in 39 countries. The recent setback notwithstanding, we are
enthusiastic about the growth potential of the communications revolution;
reflecting that conviction, media, telecommunications and technology stocks
account for nearly one-third of net assets. Among other industries, banks and
pharmaceuticals are also well-represented.
Geographic concentrations are little changed from six months ago, although
market action decreased our exposure to some countries and increased it to
others. As the table on page 3 shows, European holdings continue to dominate
the portfolio. Asia accounts for about a third of net assets, while companies
based in the Americas represent less than 10%. Finally, with nearly 15% held in
cash and equivalents, we maintained a relatively conservative stance during the
period; a generous cash position leaves us with ample buying reserves.
DRY GROUND AHEAD?
We have mentioned in previous reports our long-standing concerns about the high
level of world stock valuations. While your fund has been a beneficiary of this
growth, the gyrations of the past six months have been a sobering reminder for
all investors that markets do not only go up. Moreover, given the uncertain
outlook for inflation, Japan's ongoing struggle toward economic recovery and
the turmoil in the Middle East, it is difficult to predict whether the worst is
past. We would caution shareholders that in a downturn this broad, recovering
lost ground can take time.
It is never pleasant to see the value of an investment decline, but experience
has taught us an important lesson - namely, that market movements are
notoriously unpredictable, but that solid, well-managed companies tend to be
quite resilient. For investors with the resources to find the best of those
companies and the patience to stick with them during difficult times, the
rewards have generally outweighed the risks. Over the years, that focus has
served us, and EuroPacific shareholders, very well indeed.
We appreciate your continued confidence and look forward to reporting to you
again in six months.
Cordially,
/s/ Gina H. Despres
Gina H. Despres
Chairman of the Board
/s/ Mark Denning
Mark Denning
President
November 15, 2000
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Europacific Growth Fund
Investment Portfolio,
September 30, 2000 (Unaudited)
[begin pie chart]
Industry Diversification Largest Percent
Percent of Net Assets Individual of Net
Holdings Assets
9.07% Media
9.00% Banks Vodafone 3.53%
8.24% Diversified Telecommunication AstraZeneca 3.02
Services
6.57% Pharmaceuticals News Corp. 1.99
5.50% Semiconductor Equipment & Products Rohm 1.91
46.47% Other Industries Telefonos de Mexico 1.89
0.42% Bonds & Notes Elan 1.70
14.73% Cash & Equivalents Ericsson 1.47
Telecom Italia 1.32
Samsung Electronics 1.27
Nokia 1.25
[end pie chart]
Shares or Market Percent
Equity Securities (common and preferred Principal Value of Net
stocks and convertible debentures) Amount (Millions) Assets
---------------------------------------- -------- -------- --------
MEDIA - 9.07%
News Corp. Ltd. (ADR) (Australia) 5,785,200 $324.333
News Corp. Ltd., preferred 15,515,292 185.832
News Corp. Ltd. 8,750,231 123.422
News Corp. Ltd., preferred (ADR) 1,181,600 55.388 1.99
CANAL+ (France) 1,809,352 271.123 .78
Mediaset SpA (Italy) (2) 15,767,544 236.074 .68
Grupo Televisa, SA, ordinary participation 3,694,400 213.121 .62
certificates (ADR) (Mexico) (1)
Nippon Television Network Corp. (Japan) 331,980 190.942 .55
Reuters Group PLC (United Kingdom) 7,613,442 144.201 .41
Tokyo Broadcasting System, Inc. (Japan) 3,446,000 138.836 .40
KirchMedia GmbH & Co. KGaA 3,430,000 132.790 .38
(Germany) (1) (2) (3)
EM.TV & Merchandising AG (Germany) 1,818,000 95.033
EM.TV & Merchandising AG 4.00% convertible EUR31,151,000 25.168 .35
debentures 2005
Fuji Television Network, Inc. (Japan) 8,691 112.692 .32
Pearson PLC (United Kingdom) 3,264,545 90.625 .26
Publishing & Broadcasting Ltd. (Australia) 11,405,111 82.909 .24
RTL Group SA (formerly AUDIOFINA) 735,000 79.698 .23
(Luxembourg)
KirchPay TV GmbH & Co. KGaA, non 2,158,091 77.807 .22
voting (Germany) (1) (2) (3)
Thomson Corp. (Canada) 1,660,000 65.637 .19
Arnoldo Mondadori Editore SpA (Italy) 5,450,200 64.964 .19
United News & Media PLC (United Kingdom) 4,600,000 49.577
United News & Media PLC 6.125% convertible GBP7,400,000 12.340 .18
debentures 2003
Lagardere Groupe SCA (France) 920,000 55.769 .16
Seagram Co. Ltd. (Canada) 800,000 45.950 .13
Granada Media PLC (United Kingdom) (1) 6,396,800 42.623 .12
Television Broadcasts Ltd. (Hong Kong) 6,700,000 40.221 .12
Modern Times Group MTG AB, 211,822 27.537
Class B (ADR)(Sweden)(1)
Modern Times Group MTG AB, Class A (1) 302,260 6.937 .10
Independent Newspapers, PLC (Ireland) 9,305,474 34.099 .10
Daily Mail and General Trust PLC, Class A 2,236,591 32.283 .09
(United Kingdom)
EMI Group PLC (United Kingdom) 3,400,000 27.125 .08
Shaw Communications Inc., Class B (Canada) 1,000,000 22.927 .07
Metro International (Sweden) (1) 1,361,370 15.766 .05
Carlton Communications PLC (United Kingdom) 1,600,000 12.481 .04
PT Multimedia-Servicos de Telecommunicacoes 180,000 6.596 .02
Multimedia, SGPS, SA(Portugal) (1)
BANKS - 9.00%
Mizuho Holdings Inc. (Japan) (1) 49,626 409.069 1.18
Sakura Bank, Ltd. (Japan) 48,906,000 365.085
Sakura Finance (Bermuda) Trust, convertible 1,614,000,000 23.918 1.12
preference share units (Japan -
Incorporated in Bermuda)
ABN AMRO Holding NV (Netherlands) 15,593,985 363.515 1.05
Bank of Nova Scotia (Canada) 12,098,200 351.739 1.02
Lloyds TSB Group PLC (United Kingdom) 24,200,000 225.602 .65
Bank of Scotland (United Kingdom) 19,754,364 173.651 .50
Westpac Banking Corp. (Australia) 23,433,654 162.088 .47
Royal Bank of Canada (Canada) 4,905,400 145.715 .42
Australia and New Zealand Banking Group 15,568,887 112.164 .32
Ltd. (Australia)
China Development Industrial 114,543,000 108.260 .31
Bank (Taiwan) (1)
Hang Seng Bank Ltd. (Hong Kong) 9,795,500 105.544 .30
Unibanco-Uniao de Bancos Brasileiros SA, 2,772,000 91.476 .26
units (GDR) (Brazil)
Asahi Bank, Ltd. (Japan) 21,433,000 88.336 .26
DBS Group Holdings Ltd. (Singapore) 7,611,550 84.038 .24
Shinhan Bank (South Korea) 5,850,000 65.583 .19
Tokai Bank, Ltd. (Japan) 12,500,000 63.559 .18
Bangkok Bank PCL (Thailand) (1) 54,000,000 40.074
Bangkok Bank PCL (1) 10,267,800 7.620 .15
Toronto-Dominion Bank (Canada) 1,223,700 35.943 .10
Svenska Handelsbanken Group, 2,000,000 32.191 .09
Class A (Sweden)
HSBC Holdings PLC (United Kingdom) 1,600,000 22.370 .07
Commonwealth Bank of Australia (Australia) 1,269,500 19.008 .05
Sumitomo Bank, Ltd. (Japan) 1,200,000 15.226 .04
MBL International Finance (Bermuda) $9,000,000 9.304 .03
Trust 3.00% convertible
debentures 2002 (Bermuda)
DIVERSIFIED TELECOMMUNICATION
SERVICES - 8.24%
Telefonos de Mexico, SA de CV, 11,375,000 605.008
Class L (ADR)(Mexico)
Telefonos de Mexico, SA de CV, Class L 19,225,000 51.197 1.89
Telecom Italia SpA, nonconvertible savings 55,364,800 302.269
shares (Italy)
Telecom Italia SpA, ordinary shares 14,661,800 156.056 1.32
DDI Corp. (Japan) 34,344 225.843 .65
Telefonica, SA (Spain) (1) 6,243,912 123.775
Telefonica, SA (ADR) (1) 1,554,468 92.394 .61
Nippon Telegraph and Telephone Corp.(Japan) 20,076 197.097 .57
British Telecommunications 15,992,100 167.986 .48
PLC (United Kingdom)
Koninklijke KPN NV (formerly Koninklijke 3,410,391 74.321
PTT Nederland NV) (Netherlands)
Koninklijke KPN NV 2,835,237 61.787 .40
Deutsche Telekom AG (Germany) 3,454,100 118.644 .34
France Telecom, SA (France) 840,000 90.045 .26
Tele Danmark AS (Denmark) 1,596,200 87.853 .25
Philippine Long Distance Telephone 4,494,494 76.968 .22
Co. (ADR) (Philippines)
Portugal Telecom, SA (Portugal) 6,650,000 68.408 .20
Korea Telecom Corp. (ADR) (South Korea) 1,509,200 50.747 .15
Hellenic Telecommunications 2,466,000 47.479 .14
Organization SA (Greece)
Cable & Wireless Optus Ltd. (Australia)(1) 19,541,800 42.469 .12
Magyar Tavkozlesi Rt. (ADR) (Hungary) 1,753,300 41.312 .12
Videsh Sanchar Nigam Ltd. (ADR) (India) 2,904,209 23.234
Videsh Sanchar Nigam Ltd. 450,000 7.168
Videsh Sanchar Nigam Ltd. (GDR) 780,150 6.339 .11
Cia de Telecomunicaciones de 2,034,673 35.352 .10
Chile SA (ADR) (Chile)
TELUS Corp. (Canada) 1,202,900 31.255 .09
Tiscali SpA (Italy) (1) 430,000 15.309 .05
BCE Inc. (Canada) 580,000 13.509 .04
COLT Telecom Group PLC 2.00% convertible EUR16,000,000 12.644 .04
debentures 2006 (United Kingdom)
Sonera Group Oyj (Finland) 330,000 8.392 .02
Telecom Corp. of New Zealand 3,189,100 7.949 .02
Ltd. (New Zealand)
Mahanagar Telephone Nigam Ltd. (India) 1,797,999 4.297
Mahanagar Telephone Nigam Ltd. (GDR) 570,600 2.924 .02
Telia AB (Sweden) (1) 750,000 4.945 .02
Telecom Argentina STET-France Telecom SA, 200,000 4.325 .01
Class B (ADR) (Argentina)
PHARMACEUTICALS - 6.57%
AstraZeneca PLC (United Kingdom) 14,969,592 785.010
AstraZeneca PLC 4,993,900 261.476 3.02
Elan Corp., PLC (ADR) (Ireland) (1) 10,735,100 587.747 1.70
Shionogi & Co., Ltd. (Japan) 8,084,000 150.868 .44
Novartis AG (Switzerland) 84,866 130.404 .38
Aventis SA (France) 1,290,000 96.821 .28
Novo Nordisk AS (Denmark) (1) 410,000 90.991 .26
Glaxo Wellcome PLC (United Kingdom) 2,000,000 60.514 .17
CSL Ltd. (Australia) 21,494,209 51.580 .15
Sanofi-Synthelabo SA (France) 665,600 35.792 .10
Fujisawa Pharmaceutical Co. Ltd. (Japan) 700,000 25.803 .07
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 5.50%
Rohm Co., Ltd. (Japan) 2,420,000 663.668 1.91
Samsung Electronics Co., Ltd. (South Korea) 2,438,251 441.728 1.27
Taiwan Semiconductor Manufacturing Co. 95,506,160 317.154 .93
Ltd. (Taiwan) (1)
Murata Manufacturing Co., Ltd. (Japan) 2,210,000 304.983 .88
ASM Lithography Holding NV (Netherlands)(1) 2,000,000 66.402 .19
Infineon Technologies AG (Germany) (1) 886,000 42.598 .12
STMicroelectronics NV (Netherlands) 600,000 29.430 .08
Tokyo Electron Ltd. (Japan) 275,000 24.961 .07
Nikon Corp. (Japan) 832,000 16.799 .05
WIRELESS TELECOMMUNICATION SERVICES - 4.60%
Vodafone Group PLC (formerly Vodafone 322,658,918 1,203.658
AirTouch) (United Kingdom)
Vodafone Group PLC (ADR) 525,000 19.425 3.53
Telecom Italia Mobile SpA (Italy) 14,805,000 119.629
Telecom Italia Mobile SpA, savings shares 20,705,000 98.561 .63
NTT DoCoMo, Inc. (formerly NTT Mobile 3,585 102.931 .30
Communications Network, Inc.) (Japan)
Turkcell Iletisim Hizmetleri AS (Turkey)(1) 400,000,000 18.063 .05
Swiss Life-Mannesmann 1.50% convertible $8,000,000 16.210 .05
debentures 2003 (Switzerland)
Telesp Celular Participacoes, preferred 1,188,656,981 15.687 .04
nominative (Brazil)
COMMUNICATIONS EQUIPMENT - 3.84%
Telefonaktiebolaget LM Ericsson, 22,600,000 343.811
Class B (Sweden)
Telefonaktiebolaget LM Ericsson, 11,280,000 167.085 1.47
Class B (ADR)
Nokia Corp., Class A (Finland) 8,320,000 337.354
Nokia Corp., Class A (ADR) 2,400,000 95.550 1.25
Matsushita Communication Industrial 899,000 121.649 .35
Co., Ltd.(Japan)
ECI Telecom Ltd. (Israel) 2,935,000 89.884 .26
Nortel Networks Corp. (Canada) 910,823 54.687
Nortel Networks Corp. (ADR) 500,000 29.781 .25
Alcatel (ADR) (France) 801,000 50.363 .15
SAGEM SA (France) 118,800 25.375 .07
Research In Motion Ltd. (Canada) (1) 150,000 14.852 .04
OIL & GAS - 3.42%
TOTAL FINA ELF SA, (formerly TOTAL 1,593,378 233.273
FINA SA), Class B(France)
TOTAL FINA ELF SA, Class B (ADR) 828,807 60.866
TOTAL FINA SA (1) 180,000 .002 .85
Royal Dutch Petroleum Co. (New 2,105,000 126.168
York registered)(Netherlands)
Royal Dutch Petroleum Co. 1,000,000 60.477
"Shell" Transport and Trading Co., 1,675,000 81.970 .78
PLC (New York registered) (United Kingdom)
Petroleo Brasileiro SA-PETROBRAS, ordinary 5,534,600 166.384 .48
nominative (ADR) (Brazil) (1)
Sasol Ltd. (South Africa) 16,794,100 132.631 .38
ENI SpA (Italy) 24,500,000 129.801 .37
Enterprise Oil PLC (United Kingdom) 10,800,000 88.316 .25
LUKOIL(ADR) (Russia) 727,600 41.910 .12
Suncor Energy Inc. (Canada) 1,500,000 33.094 .10
Petro-Canada (Canada) 1,400,000 31.167 .09
FOOD PRODUCTS - 2.52%
Nestle SA (Switzerland) 157,500 328.772 .95
Groupe Danone (France) 1,798,800 247.146 .71
Orkla AS, Class A (Norway) 11,024,000 213.832 .62
Unilever PLC (United Kingdom) 12,802,700 82.846 .24
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.40%
Hon Hai Precision Industry Co. Ltd.(Taiwan) 60,398,000 397.279 1.14
Hitachi, Ltd. (Japan) 10,670,000 123.925 .36
Samsung Electro-Mechanics 3,413,970 115.432 .33
Co. (South Korea) (1)
Hirose Electric Co., Ltd. (Japan) 840,000 109.697 .32
TDK Corp. (Japan) 673,000 85.395 .25
METALS & MINING - 1.97%
Broken Hill Proprietary Co. Ltd.(Australia) 23,120,887 240.200 .69
Pechiney, Class A (France) 3,778,675 151.147 .43
Kawasaki Steel Corp. (Japan) 84,314,000 99.174 .29
Billiton PLC (United Kingdom) 16,618,800 59.356 .17
De Beers Consolidated Mines 1,393,300 38.725 .11
Ltd. (South Africa)
Anglo American PLC (United Kingdom) 700,000 37.049 .11
ThyssenKrupp AG (Germany) 2,742,200 36.877 .11
Usinor 3.875% convertible EUR1,270,000 21.363 .06
preferred 2005 (France)(1)
DIVERSIFIED FINANCIALS - 1.78%
ING Groep NV (Netherlands) 3,382,984 225.472 .65
ORIX Corp. (Japan) 614,400 73.521
ORIX Corp. (ADR) 189,600 11.092
ORIX Corp. 0.375% convertible Y600,000,000 7.044 .26
debentures 2005
STB Cayman Capital, Ltd. 0.50% 2007 (Japan) 5,510,000,000 74.253
STB Cayman Capital, Ltd. 0.50% convertible Y415,000,000 5.593 .23
debentures 2007
Investor AB, Class B (Sweden) 4,000,000 56.698 .16
Hutchison Whampoa Ltd. (Hong Kong) 3,558,500 47.243 .14
First Pacific Co. Ltd. (Hong Kong) 109,500,000 32.656 .09
Ayala Corp. (Philippines) 153,341,400 22.619 .07
Nichiei Co., Ltd. (Japan) 3,162,900 20.301 .06
Shohkoh Fund & Co., Ltd. (Japan) 160,000 20.109 .06
Lend Lease Corp. Ltd. (Australia) 870,841 9.827 .03
Toyo Trust and Banking Co., Ltd. (Japan) 2,800,000 9.517 .03
INDUSTRIAL CONGLOMERATES - 1.55%
Siemens AG (Germany) 1,725,000 222.003 .64
Norsk Hydro AS (Norway) 3,570,000 149.511
Norsk Hydro AS (ADR) 500,000 21.156 .49
Brambles Industries Ltd. (Australia) 4,350,000 113.885 .33
Smiths Industries PLC (United Kingdom) 3,200,000 33.165 .09
AUTOMOBILES - 1.50%
Honda Motor Co., Ltd. (Japan) 6,510,000 239.972 .69
Suzuki Motor Corp. (Japan) 19,015,000 197.776 .57
DaimlerChrysler AG (New York 1,000,000 44.390 .13
registered) (Germany)
Mitsubishi Motors Corp. (Japan) (1) 8,304,000 25.534 .07
PT Astra International 54,000,000 14.351 .04
Tbk (Indonesia) (1) (3)
HOUSEHOLD DURABLES - 1.33%
Sony Corp. (Japan) 3,584,300 363.841 1.05
Sekisui House, Ltd. (Japan) 5,820,000 56.329 .16
Funai Electric Co., Ltd. (Japan) 225,000 23.340 .07
Daiwa House Industry Co., Ltd. (Japan) 2,560,000 17.901 .05
BEVERAGES - 1.26%
Foster's Brewing Group Ltd. (Australia) 66,028,796 154.029 .45
Ito En, Ltd. (Japan) 1,165,000 92.794 .27
South African Breweries PLC(United Kingdom) 9,422,287 63.838 .18
Heineken NV (Netherlands) 1,005,000 55.907 .16
Hellenic Bottling Co. SA (Greece) 1,423,772 18.497 .05
Panamerican Beverages, Inc., 1,008,500 17.145 .05
Class A (Mexico)
Coca-Cola West Japan Co. Ltd. (Japan) 500,000 16.671 .05
Lion Nathan Ltd. (New Zealand) 8,000,000 15.640 .05
Coca-Cola Amatil Ltd. (Australia) 492,300 1.002 .00
IT CONSULTING & SERVICES - 1.24%
Sema Group PLC (United Kingdom) 6,350,000 108.825 .31
CMG PLC (United Kingdom) 3,572,400 69.087
CMG PLC (Netherlands) 1,412,036 27.430 .28
Logica PLC (United Kingdom) 2,800,000 92.042 .27
Dimension Data Holdings 6,925,237 64.095 .18
PLC (South Africa) (1)
ALTRAN TECHNOLOGIES (France) 300,000 63.338 .18
Getronics NV (Netherlands) 500,000 5.024 .02
MACHINERY - 1.18%
Volvo AB, Class B (Sweden) 11,715,000 189.167 .54
Mitsubishi Heavy Industries, Ltd. (Japan) 21,000,000 83.245 .24
Metso Oyj (Finland) 3,400,000 34.525 .10
Invensys PLC (United Kingdom) 14,000,000 30.560 .09
Minebea Co., Ltd. (Japan) 2,452,000 28.728 .08
Kvaerner ASA, Class A (Norway) (1) 1,959,121 18.569 .05
TI Group PLC (United Kingdom) 3,197,300 16.391 .05
Morgan Crucible Co. PLC (United Kingdom) 2,550,836 9.779 .03
PAPER & FOREST PRODUCTS - 1.18%
UPM-Kymmene Corp. (Finland) 6,530,800 167.061 .48
Abitibi-Consolidated Inc. (Canada) 12,500,000 116.710 .34
Stora Enso Oyj (Finland) 9,648,443 80.851 .23
Sappi Ltd. (South Africa) (1) 6,000,000 44.475 .13
COMPUTERS & PERIPHERALS - 1.17%
Fujitsu Ltd. (Japan) 10,346,000 240.516 .69
NEC Corp. (Japan) 4,401,000 100.069 .29
Compal Electronics, Inc. (Taiwan) 17,697,680 27.690 .08
Toshiba Corp. (Japan) 3,000,000 24.201 .07
Acer Inc. (Taiwan) (1) 13,548,437 14.925 .04
INSURANCE - 1.17%
PartnerRe Holdings Ltd. (Singapore - 2,031,900 96.388 .28
Incorporated in Bermuda)
Yasuda Fire and Marine Insurance 15,999,000 85.055 .25
Co., Ltd. (Japan)
Mitsui Marine and Fire Insurance 15,111,000 69.558 .20
Co., Ltd. (Japan)
Nippon Fire & Marine Insurance 10,217,000 42.110 .12
Co., Ltd. (Japan)
Nichido Fire and Marine Insurance 6,845,000 38.672 .11
Co., Ltd. (Japan)
Royal & Sun Alliance Insurance Group PLC 3,923,056 26.198 .08
(United Kingdom)
AEGON NV (Netherlands) 654,513 24.707 .07
Allied Zurich PLC (United Kingdom) 1,950,000 22.154 .06
COMMERCIAL SERVICES & SUPPLIES - 1.14%
Granada Compass PLC (United Kingdom) (1) 17,123,660 160.139 .46
Buhrmann NV (Netherlands) 3,844,000 96.736 .28
Securitas AB, Class B (Sweden) 3,108,000 67.937 .20
Adecco SA (Switzerland) 92,000 59.747 .17
Rentokil Initial PLC (United Kingdom) 5,000,000 11.210 .03
ELECTRIC UTILITIES - 0.89%
PowerGen PLC (United Kingdom) 11,261,943 86.270 .25
Scottish Power PLC (United Kingdom) 8,997,500 69.788 .20
National Grid Group PLC (United Kingdom) 5,500,000 47.170 .14
Cia. Energetica de Minas Gerais - CEMIG, 2,419,484 39.921
preferred nominative (ADR) (Brazil)
Cia. Energetica de Minas Gerais - CEMIG, 42,049,152 .537 .12
ordinary nominative
Manila Electric Co. (GDR) (Philippines)(3) 3,732,000 21.352
Manila Electric Co., Class B 11,448,457 13.162 .10
RWE AG (Germany) 827,800 29.092 .08
LEISURE EQUIPMENT & PRODUCTS - 0.76%
Nintendo Co., Ltd. (Japan) 1,195,700 218.497 .63
Fuji Photo Film Co., Ltd. (Japan) 1,320,000 44.257 .13
MULTILINE RETAIL - 0.66%
Ito-Yokado Co., Ltd. (Japan) 2,150,000 112.110 .32
Kingfisher PLC (United Kingdom) 10,501,462 68.576 .20
Cifra, SA de CV, Class V (Mexico) (1) 16,787,918 34.948
Cifra, SA de CV, Class C (1) 6,037,600 11.942 .14
AUTO COMPONENTS - 0.59%
GKN PLC (United Kingdom) 12,400,000 123.567 .35
NGK Spark Plug Co., Ltd. (Japan) 4,412,000 73.799 .21
Cie. Generale des Etablissements Michelin, 324,303 9.020 .03
Class B (France)
MULTI-UTILITIES - 0.59%
Vivendi SA (France) 2,073,238 154.142 .44
United Utilities PLC (United Kingdom) 4,978,414 50.529 .15
REAL ESTATE - 0.59%
Sun Hung Kai Properties Ltd. (Hong Kong) 8,150,000 76.837 .22
Hongkong Land Holdings Ltd. (Hong Kong - 34,363,300 63.228 .18
Incorporated in Bermuda)
Cheung Kong (Holdings) Ltd. (Hong Kong) 1,800,000 21.761 .06
Security Capital Global 1,125,000 21.611 .06
Realty (Luxembourg)(1)(2)(3)
Ayala Land, Inc. (Philippines) 194,126,200 19.791 .07
SPECIALTY RETAIL - 0.56%
Dixons Group PLC (United Kingdom) 61,909,180 192.990 .56
BUILDING PRODUCTS - 0.54%
TOSTEM CORP. (Japan) 7,050,000 98.597 .28
Nippon Sheet Glass Co., Ltd. (Japan) 3,296,000 52.964 .15
Nippon Electric Glass Co., Ltd. (Japan) 1,590,000 36.816 .11
OTHER INDUSTRIES - 4.64%
Hoya Corp. (Japan) 1,624,000 127.399 .37
Bombardier Inc., Class B (Canada) 6,600,000 114.035 .33
Deutsche Lufthansa AG (Germany) 5,400,000 110.384 .32
EPCOS AG (Germany) (1) 1,355,000 110.075 .32
Reckitt Benckiser PLC (United Kingdom) 8,538,919 104.266 .30
Cemex, SA de CV, ordinary participation 4,394,934 88.173
certificates, Units (ADR) (Mexico)
Cemex, SA de CV, warrants, expire 2002 (1) 262,457 .459 .25
BOC Group PLC (United Kingdom) 5,005,000 66.180 .19
TNT Post Groep NV (Netherlands) 2,507,541 58.343 .17
Premier Farnell PLC (United Kingdom) 8,318,000 55.915 .16
L'Air Liquide (France) 399,814 46.918 .14
Freeserve PLC (United Kingdom) (1) 12,500,000 43.768 .13
British Airways PLC (United Kingdom) 10,000,000 42.217 .12
Matsushita Electric Works, Ltd. (Japan) 3,655,000 42.078 .12
Seven-Eleven Japan Co., Ltd. (Japan) 700,000 40.715 .12
Stolt-Nielsen SA, Class B (ADR) 1,997,900 38.459 .11
(Multinational - Incorporated in
Luxembourg)
Peninsular and Oriental Steam Navigation 4,185,628 36.794 .11
Co. (United Kingdom)
Mitsui & Co., Ltd. (Japan) 5,600,000 35.010 .10
Safeway PLC (United Kingdom) 8,229,900 34.896 .10
Uni-Charm Corp. (Japan) 650,000 34.737 .10
Thames Water PLC (United Kingdom) 1,869,931 33.566 .10
Nippon COMSYS Corp. (Japan) 1,730,000 32.126 .09
Bergesen d.y. AS, Class B (Norway) 1,130,000 21.358
Bergesen d.y. AS, Class A 458,300 9.647 .09
LVMH Moet Hennessy Louis Vuitton (France) 350,000 26.439 .08
Finmeccanica SpA (Italy) (1) 22,000,000 26.167 .08
"Holderbank" Financiere Glaris 23,966 25.028 .07
Ltd. (Switzerland)
Wanadoo (France) (1) 1,700,000 24.978 .07
Bayer AG (Germany) 600,000 22.199 .06
BAE Systems (United Kingdom) 4,000,000 21.570 .06
AssiDoman AB (Sweden) 1,124,700 17.635 .05
Loblaw Companies Ltd. (Canada) 560,100 16.619 .05
Bouygues SA (France) 300,000 15.126 .05
Baltimore Technologies 1,402,900 14.301 .04
PLC (United Kingdom) (1)
T-Online International AG (Germany) (1) 620,000 13.851 .04
InterQ Inc. (Japan) (1) 583,600 12.540 .03
Intershop Communications AG (Germany) (1) 175,000 11.404 .03
Imperial Chemical Industries PLC (ADR) 430,000 9.971 .03
(United Kingdom)
Elektrim SA 3.75% convertible EUR10,600,000 8.237 .02
debentures 2004 (Poland)
Liberty Surf Group SA (France) (1) 320,200 6.347 .02
Lernout & Hauspie Speech 260,000 3.413 .01
Products NV (Belgium) (1)
Square Co., Ltd. (Japan) 45,750 1.780 .01
World Online International (Netherlands)(1) 100,000 1.254 .00
PT Multimedia.com-Servicos de Acesso a 180,000 1.089 .00
Internet, SGPS, SA (Portugal) (1)
I.T.C. Ltd. (India) 372 .006 .00
MISCELLANEOUS - 3.40%
Other equity securities in initial period 1,178.756 3.40
of acquisition
---------- ----------
Total Equity Securities (cost: 29,418.800 84.85
$21,903.765 million)
Principal Market Percent
Amount Value of Net
Bonds & Notes (Millions) (Millions) Assets
------------------------------------- -------- -------- --------
NON U.S. GOVERNMENT OBLIGATIONS - 0.42%
Brazil (Federal Republic of), $164.381 126.162 .36
Bearer 8.00% 2014
Argentina (Republic of) 11.75% 2007 ARP14.000 12.608
Argentina (Republic of) 11.375% 2017 $7.500 6.739 .06
---------- ----------
Total Bonds & Notes (cost: 145.509 .42
$118.726 million) ---------- ----------
Short-Term Securities
--------------------------------------
CORPORATE SHORT-TERM NOTES - 11.45%
American Honda Finance Corp. 6.48%-6.50% 113.000 112.248 .32
due 10/20-11/20/2000
Procter & Gamble Co. due 6.47% 110.000 109.516 .31
due 10/19-10/31/2000
General Electric Capital Corp. 6.52%-6.55% 110.000 108.596 .31
due 10/30/2000-1/11/2001
General Motors Acceptance Corp. 6.47%-6.52% 110.000 108.326 .31
due 11/29/2000-1/10/2001
DaimlerChrysler North America Holdings 106.600 105.454 .30
Corp. 6.48%-6.52% due 10/25/2000-1/17/2001
Svenska Handelsbanken 6.49%-6.51% 105.000 104.502 .30
due 10/3-11/8/2000
KfW International Finance Inc. 6.50% 105.000 103.082 .30
due 1/4-1/18/2001
Halifax PLC 6.49%-6.55% due 10/5-10/30/2000 103.000 102.738 .30
Motorola Inc. 6.45%-6.51% 102.500 101.729 .29
due 10/19-12/29/2000
FCE Bank 6.53%-6.56% due 10/6-10/11/2000 100.000 99.845 .29
BMW US Capital Corp. 6.47%-6.48% 100.000 99.824 .29
due 10/3-10/12/2000
Coca-Cola Co. (The) 6.48%-6.49% 100.000 99.693 .29
due 10/10-10/24/2000
Alcoa Inc. 6.47%-6.53% due 10/5-11/15/2000 100.000 99.680 .29
American Express Credit Corp. 6.48% 100.000 99.638 .29
due 10/17-10/23/2000
Deutsche Bank Financial Inc. 6.47%-6.50% 100.000 99.626 .29
due 10/2-11/28/2000
AT&T Corp. 6.47%-6.50% due 10/4-11/3/2000 99.950 99.625 .29
ANZ (Delaware) Inc. 6.47%-6.51% 100.000 99.603 .29
due 10/16-10/26/2000
International Business Machines Corp. 100.000 99.576 .29
6.47%-6.52% due 10/3-11/3/2000
Den Danske Corp. Inc. 6.47%-6.50% 100.000 99.214 .29
due 10/18-12/13/2000
Abbey National North America 6.48%-6.51% 100.000 99.190 .29
due 10/11/2000-1/19/2001
British Telecommunications PLC 6.48%-6.53% 100.000 99.151 .29
due 11/13-11/17/2000
International Lease Finance Corp. 100.000 99.064 .28
6.47%-6.50% due 10/18/2000-1/26/2001
Spintab AB 6.47%-6.53% 100.000 99.040 .29
due 10/11/2000-1/18/2001
Societe Generale North America Inc. 100.000 98.979 .29
6.47%-6.53% due 10/12/2000-1/16/2001
Bank of Nova Scotia 6.48%-6.52% 100.000 98.943 .29
due 10/6/2000-1/8/2001
Motiva Enterprises LLC 6.47%-6.51% 96.300 95.723 .28
due 10/2-11/17/2000
Associates First Capital Finance BV 94.900 94.565 .27
6.49%-6.53% due 10/12-10/25/2000
Duke Energy Corp. 6.46%-6.65% 88.500 87.906 .25
due 10/2-12/5/2000
Verizon Global Funding 6.47%-6.48% 86.800 86.145 .25
due 11/9-11/20/2000
Bank of America Corp. 6.49%-6.54% 87.000 85.712 .25
due 10/4/2000-1/22/2001
Toronto-Dominion Holdings USA Inc. 86.200 85.665 .25
6.48%-6.49% due 10/17-11/16/2000
Dresdner U.S. Finance Inc. 6.47%-6.50% 85.500 85.123 .25
due 10/13-12/7/2000
Barclays U.S. Funding Corp. 6.49%-6.65% 85.000 84.763 .24
due 10/6-10/25/2000
E.I. du Pond de Nemours & Co. 6.46%-6.48% 76.700 76.350 .22
due 10/12-11/21/2000
CBA (Delaware) Finance Inc. 6.48%-6.55% 75.000 74.725 .22
due 10/5-11/20/2000
CDC Commercial Paper Corp. 6.48%-6.52% 55.600 54.859 .16
due 10/18-12/18/2000
Telstra Corp. Ltd. 6.50%-6.51% 55.000 54.491 .16
due 11/14-11/28/2000
ABN AMRO Bank NV 6.48% due 10/10/2000 50.000 49.910 .14
Campbell Soup Co. 6.46%-6.50% 50.000 49.825 .14
due 10/16-10/23/2000
Monte Rosa Capital Corp. 6.51% 50.000 49.783 .14
due 10/24/2000
Internationale Nederlanden (U.S.) Funding 50.000 49.766 .14
Corp. 6.49% due 10/26/2000
Eksportfinans ASA 6.47% due 11/8/2000 50.000 49.648 .14
Westpac Trust Securities NZ 6.53% 50.000 49.577 .14
due 11/16/2000
Archer Daniels Midland Co. 6.53%-6.55% 46.650 46.588 .13
due 10/2-10/13/2000
Chevron U.K. Investment PLC 6.50%-6.55% 40.000 39.776 .11
due 10/17-11/14/2000
Caisse d'mortisement de la dette 25.000 24.909 .07
sociale 6.50% due 10/20/2000
Vattenfall Treasury AB 6.52% 25.000 24.815 .07
due 11/10/2000
Associates First Capital Corp. 6.54% 21.250 21.184 .06
due 10/17/2000
FEDERAL AGENCY DISCOUNT NOTES - 2.35%
Freddie Mac 6.37%-6.44% 347.962 343.779 .99
due 10/31/2000-1/19/2001
Federal Home Loan Banks 6.40%-6.43% 239.080 237.301 .68
due 10/4-11/29/2000
Fannie Mae 6.38%-6.44% 211.000 234.135 .68
due 10/12-12/18/2000
CERTIFICATES OF DEPOSIT - 0.71%
Canadian Imperial Bank of Commerce 100.000 99.995 .29
6.54%-6.64% due 10/16/2000-1/17/2001
Lloyds TSB Group PLC 6.57% due 12/19/2000 75.000 74.998 .22
National Westminster Bank PLC 6.595% 50.000 50.002 .14
due 11/15/2000
Barclays Bank PLC 6.65% due 10/3/2000 22.000 22.000 .06
OTHER FEDERAL AGENCIES SHORT-TERM
OBLIGATIONS - 0.29%
Sallie Mae 6.533%-6.713% 100.000 99.966 .29
due 12/21/2000-3/15/2001
NON-U.S. CURRENCY - 0.02%
New Taiwanese Dollar NT$233.798 7.465 .02
---------- ----------
Total Short-Term Securities 5,138.331 14.82
(cost: $5,139.179 million)
---------- ----------
Total Investment Securities 34,702.640 100.09
(cost: $27,161.670 million)
Excess of payable over cash and receivables 32.617 .09
---------- ----------
NET ASSETS $34,670.023 100.00
---------- ----------
(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.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
EuroPacific Growth Fund
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2000 (dollars in millions)
Assets:
Investment securities at market
(cost: $27,161.670) $34,702.640
Cash 1.294
Receivables for--
Sales of investments $89.771
Sales of fund's shares 147.503
Forward currency contracts - net 19.538
Dividends and accrued interest 76.241 333.053
35,036.987
Liabilities:
Payables for--
Purchases of investments 160.998
Repurchases of fund's shares 180.210
Forward currency contracts - net 0.000
Dividends on fund's shares 0.000
Management services 13.217
Chase Manhattan Bank 0.000
Other expenses 12.539 366.964
Net Assets at September 30, 2000-- $34,670.023
Shares of beneficial interest issued and
outstanding - unlimited
shares authorized
Class A shares:
Net assets $34,438.646
Shares outstanding 904,658,690
Net asset value per share $38.07
Class B shares:
Net assets $231.377
Shares outstanding 6,101,823
Net asset value per share $37.92
STATEMENT OF OPERATIONS
at September 30, 2000 (dollars in millions)
Investment Income:
Income:
Dividends $143.743
Interest 284.837 $428.580
Expenses:
Management services fee 82.626
Distribution expenses - Class A 45.733
Distribution expenses - Class B .664
Transfer agent fee - Class A 14.361
Transfer agent fee - Class B .055
Reports to shareholders .832
Registration statement and prospectus 2.157
Postage, stationery and supplies 1.738
Trustees' fees .021
Auditing and legal fees .088
Custodian fee 7.085
Taxes other than federal income tax 0.000
Other expenses .008 155.368
Net investment income 273.212
Realized Gain and Change in Unrealized
Appreciation on Investments:
Net realized gain 1,569.709
Net change in unrealized appreciation on:
Investments (7,687.608)
Open forward currency contracts 23.924
Net change in unrealized appreciation (7,663.684)
Net realized gain and
change in unrealized appreciation
on investments (6,093.975)
Net Decrease in Net Assets Resulting
From Operations ($5,820.763)
STATEMENT OF CHANGES IN NET ASSETS (dollars in millions)
Six months ended Year ended
September 30, March 31,
2000* 2000
Operations:
Net investment income $273.212 $265.285
Net realized gain on investments 1,569.709 3,084.054
Net change in unrealized appreciation
on investments (7,663.684) 9,238.773
Net (decrease) increase in net assets
resulting from operations (5,820.763) 12,588.112
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income,
Class A - (221.364)
Distributions from net realized gains
on investments, Class A - (1,078.276)
Total dividends and distributions - (1,299.640)
Capital Share Transactions:
Proceeds from shares sold 6,984.076 10,707.128
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain
on investments - 1,245.354
Cost of shares repurchased (5,360.488) (6,456.731)
Net increase in net assets resulting from
capital share transactions 1,623.588 5,495.751
Total (Decrease) Increase in Net Assets (4,197.175) 16,784.223
Net Assets:
Beginning of period 38,867.198 22,082.975
End of period (including
undistributed net investment
income: $334.227 and $61.015
respectively) $34,670.023 $38,867.198
*Unaudited
See Notes to Financial Statements
</TABLE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
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.
The fund offers Class A and Class B shares. Class A shares are sold with an
initial sales charge of up to 5.75%. Class B shares are sold without an
initial sales charge but subject to a contingent deferred sales charge paid
upon redemption. This charge declines from 5% to zero over a period of six
years. Class B shares have higher distribution expenses and transfer agent fees
than Class A shares. Class B shares are automatically converted to Class A
shares eight years after the date of purchase. Holders of both classes of
shares have equal pro rata rights to assets and identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution and transfer agent expenses, and each class shall have exclusive
rights to vote on matters affecting only their class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with accounting principles generally accepted in the United
States 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. Short-term securities maturing within 60 days are valued at amortized
cost, which approximates market value. Forward currency contracts are valued
at the mean of their representative quoted bid and asked prices. 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. The ability of the issuers of the fixed-income
securities held by the fund to meet their obligations may be affected by
economic developments in a specific industry, state or region.
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 fixed-income
securities 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 manage 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. Purchases and sales of forward currency exchange
contracts having the same settlement date and broker are offset and presented
net in the statement of assets and liabilities.
ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily between Class A
and Class B based on their relative net asset values. Distribution expenses,
transfer agent fees and any other class-specific expenses are accrued daily and
charged to the applicable share class.
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 - Dividend and interest income is recorded net of non-U.S. taxes paid.
For the six months ended September 30, 2000, such non-U.S. taxes were
$43,971,000.
Net realized gain of the fund derived in certain countries is subject to
certain non-U.S. taxes. The fund provides for such non-U.S. taxes on
investment income, net realized gain and net unrealized gain.
CURRENCY GAINS AND LOSSES - Net realized currency losses on dividends,
interest, sales of non-U.S. bonds and notes, forward contracts, and other
receivables and payables, on a book basis, were $9,860,000,000 for the six
months ended September 30, 2000.
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, 2000, net unrealized appreciation on investments excluding
forward currency contracts for book and federal income tax purposes aggregated
$7,540,970,000; $9,629,169,000 related to appreciated securities and
$2,088,199,000 related to depreciated securities. During the six months ended
September 30, 2000, the fund realized, on a tax basis, a net capital gain of
$1,579,569,000 on securities transactions. Net losses related to non-U.S.
currency transactions of $9,860,000 are treated as an adjustment to ordinary
income for federal income tax purposes. The cost of portfolio securities,
excluding forward currency contracts, for federal income tax purposes was
$27,161,670,000 at Setember 30, 2000.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $82,626,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
NET ASSET LEVEL
RATE IN EXCESS OF UP TO
<S> <C> <C>
0.69% $0 $500 MILLION
0.59 500 million 1.0 billion
0.53 1 billion 1.5 billion
0.50 1.5 billion 2.5 billion
0.48 2.5 billion 4.0 billion
0.47 4.0 billion 6.5 billion
0.46 6.5 billion 10.5 billion
0.45 10.5 billion 17 billion
0.44 17 billion 21 billion
0.43 21 billion 27 billion
0.425 27 billion 34 billion
0.42 34 billion 44 billion
0.415 44 billion
</TABLE>
DISTRIBUTION EXPENSES - American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $5.678,000 (after allowances to
dealers) as its portion of the sales charges paid by purchasers of the fund's
Class A shares during the six month period ended September 30, 2000. Such sales
charges are not an expense of the fund and, hence, are not reflected in the
accompanying Statement of Operations.
The fund has adopted plans of distribution under which it may finance
activities primarily intended to sell fund shares, provided the categories of
expense are approved in advance by the fund's Board of Trustees. The plans
provide for aggregate annual expense limits of 0.25% of net assets for Class A
shares, and 1.00% of net assets for Class B shares.
For Class A shares, approved categories of expense include dealer service fees
of up to 0.25% of net assets. Also included are monthly reimbursements to AFD
for commissions paid during the prior 15-month period to dealers and
wholesalers in respect of certain shares sold without a sales charge. These
reimbursements are permitted onlt to the extent that the fund's overall 0.25%
annual expense limit is not exceeded. For the six month period ended September
30, 2000, aggregate distribution expenses were limited to $45,733,000, or 0.25%
of net assets attributable to Class A shares. As of September 30, 2000,
unreimbursed expenses which remain subject to reimbursement totaled
$22,611,000.
For Class B shares, approved categories of expense include fees of 0.75% per
annum payable to AFD. AFD sells the rights to receive such payments (as well
as any contingent deferred sales charges payable in respect of shares sold
during the period) in order to finance the payment of dealer commissions. Also
included are service fees of 0.25% per annum. These fees are paid to AFD to
compensate AFD for paying service fees to qualified dealers. For the six
months ended September 30, 2000, aggregate distribution expenses were $664,000,
or 1.00% of net assets attributable to Class B shares.
As of September 30, 2000, accrued and unpaid distribution expenses payable to
AFD for Class A and Class B were $5,461,000 and $180,000 respectively.
TRANSFER AGENT FEE - A fee of $14,416,000 was incurred during the six months
ended September 30, 2000 pursuant to an agreement with American Funds Service
Company (AFS), the transfer agent for the fund.
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, 2000, aggregate deferred amounts and earnings thereon since
the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $1,113,000.
AFFILIATED TRUSTEES' AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees 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 $5,152,588,000 and $5,480,969,000, respectively,
during the six months ended September 30, 2000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the six months ended September 30, 2000, the custodian fee of $7,085,000
includes $128,000 that was paid by these credits rather than in cash.
Net assets consisted of the following:
<TABLE>
<S> <C>
Capital paid in on shares of beneficial interest $23,200,707,000
Undistributed net investment income 334,227,000
Accumulated net realized gain 3,576,904,000
Net unrealized appreciation 7,558,185,000
Net Assets $34,670,023,000
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C> <C> <C>
Six months Year ended
September 30,2000 March 31,2000
Amount (000) Shares Amount (000) Shares
Class A Shares:
Sold $ 6,760.541 164,995,477 $10,677.481 279,693,484
Reinvestment of dividends - - 1,245.354 33,084,650
and distributions
Repurchased (5,358.132) (131,018,584) (6,456.700) (173,087,213)
Net increase in Class A 1,402.409 33,976,893 5,466.135 139,690,921
Class B Shares: (1)
Sold 223.535 5,490,727 29.647 670,954
Reinvestment of dividends - - - -
and distributions
Repurchased (2.356) (59,159) (0.031) (699)
Net increase in Class B 221.179 5,431,568 29.616 670,255
Total net increase in fund $ 1,623.588 39,408,461 $ 5,495.751 140,361,176
(1) Class B shares were not offered before March 15, 2000.
</TABLE>
At September 30, 2000, the fund had outstanding forward currency contracts to
sell non-U.S. currencies as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NON-U.S. CURRENCY CONTRACT AMOUNTS U.S. VALUATION AT 9/30/2000
SALE CONTRACT
Non-U.S. U.S. Amount Unrealized
Appreciation
Japanese Yen Yen30,185,100,000 $300,000,000 $280,461,000 $19,539,000
expiring 10/18/2000
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS (1)
Net
Net asset gains/(losses)
value, Net on securities
beginning investment (both realized
Period ended of period income and unrealized)
Class A:
9/30/2000 $44.61 0.31 (2) $(6.85)(2)
2000 30.21 .34 15.74
1999 29.56 .42 1.85
1998 26.70 .45 4.79
1997 24.28 .46 3.28
1996 20.89 .46 3.63
Class B:
9/30/2000 44.59 0.12 (2) (6.79)(2)
2000 (5) 43.09 .03 1.47 (2)
Dividends
Total from (from net Distributions
investment investment (from capital
Period ended operations income) gains)
Class A:
9/30/2000 $(6.54) - -
2000 16.08 $(.29) $(1.39)
1999 2.27 (.36) (1.26)
1998 5.24 (.45) (1.93)
1997 3.74 (.44) (.88)
1996 4.09 (.49) (.21)
Class B:
9/30/2000 (6.67) - -
2000 (5) 1.50 - -
Net asset
Total value, end Total
Period ended distributions of period return
Class A:
9/30/2000 - $38.07 (14.66)%
2000 $(1.68) 44.61 54.31
1999 (1.62) 30.21 8.18
1998 (2.38) 29.56 20.97
1997 (1.32) 26.70 15.88
1996 (.70) 24.28 19.84
Class B:
9/30/2000 - 37.92 (14.96)
2000 (5) - 44.59 3.48
Ratio of Ratio of
Net assets, expenses net income
end of period to average to average
Period ended (in millions) net assets net assets
Class A:
9/30/2000 $34,439 0.85% (3) 1.5% (3)
2000 38,837 .84 .93
1999 22,083 .84 1.45
1998 21,316 .86 1.64
1997 16,737 .90 1.77
1996 12,335 .95 2.09
Class B:
9/30/2000 231 1.58 (3) 0.58 (3)
2000 (5) 30 1.61 (3) 1.36 (3)
Portfolio
turnover
Period ended rate
Class A:
9/30/2000 15.98% (4)
2000 28.94
1999 31.73
1998 30.51
1997 25.82
1996 21.77
Class B:
9/30/2000 15.98 (4)
2000 (5) 28.94
</TABLE>
(1) The periods 1996 through 2000 represent fiscal years ended March 31. The
periods ended September 30, 2000 represent the six-month period ended
September 30, 2000 (unaudited). Total returns for the six-month periods
are based on activity during the period and thus are not representative
of a full year. Total returns exclude all sales charges, including
contingent deferred sales charges.
(2) Based on average shares outstanding.
(3) Annualized.
(4) Represents portfolio turnover rate (equivalent for all share classes) for
the six months ended September 30, 2000.
(5) Class B shares were not offered before March 15, 2000. The period 2000
represents the 16-day fiscal year ended March 31, 2000.
The American Funds Group(r)
EUROPACIFIC GROWTH FUND
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, OR FOR A
PROSPECTUS FOR ANY OF THE AMERICAN FUNDS, 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. PLEASE READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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, 2000, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
There are two ways to invest in EuroPacific Growth Fund. Class A shares are
subject to a 5.75% maximum up-front sales charge that declines for accounts of
$25,000 or more. Class B shares, which are not available for certain
employer-sponsored retirement plans, have no up-front sales charge. They are,
however, subject to additional expenses of approximately 0.75% a year over the
first eight years of ownership. If redeemed within six years, they may also be
subject to a contingent deferred sales charge (5% maximum) that declines over
time. Because expenses are first deducted from income, dividends for Class B
share accounts will be lower.
Printed on recycled paper
Litho in USA SI/AL/4834
Lit. No. EUPAC-013-1100
