<PAGE>
EuroPacific Growth Fund/(R)/
Prospectus
MARCH 15, 2000
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED
OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
<PAGE>
---------------------------------------------------------
EUROPACIFIC GROWTH FUND
333 South Hope Street
Los Angeles, California 90071
<TABLE>
<CAPTION>
TABLE OF CONTENTS
-------------------------------------------------------
<S> <C>
Risk/Return Summary 2
-------------------------------------------------------
Fees and Expenses of the Fund 5
-------------------------------------------------------
Investment Objective, Strategies and Risks 6
-------------------------------------------------------
Management and Organization 9
-------------------------------------------------------
Shareholder Information 11
-------------------------------------------------------
Choosing a Share Class 12
-------------------------------------------------------
Purchase and Exchange of Shares 13
-------------------------------------------------------
Sales Charges 14
-------------------------------------------------------
Sales Charge Reductions and Waivers 16
-------------------------------------------------------
Plans of Distribution 17
-------------------------------------------------------
How to Sell Shares 18
-------------------------------------------------------
Distributions and Taxes 19
-------------------------------------------------------
Financial Highlights 20
-------------------------------------------------------
</TABLE>
1
EUROPACIFIC GROWTH FUND / PROSPECTUS
EUPAC-010-0300/B
<PAGE>
---------------------------------------------------------
RISK/RETURN SUMMARY
The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe or the Pacific Rim.
The fund is designed for investors seeking greater capital appreciation through
investments in stocks of issuers based outside the U.S. Investors in the fund
should have a long-term perspective and be able to tolerate potentially wide
price fluctuations. An investment in the fund is subject to risks, including
the possibility that the fund may decline in value in response to economic,
political or social events in the U.S. or abroad. The prices of equity
securities owned by the fund may be affected by events specifically involving
the companies issuing those securities.
Although all securities in the fund's portfolio may be adversely affected by
currency fluctuations or world political, social and economic instability,
investments outside the U.S.may be affected to a greater extent.
Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.
YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS IS GREATER
IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
2
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
INVESTMENT RESULTS
The following information provides some indication of the risks of investing in
the fund by showing changes in the fund's investment results from year to year
and by showing how the fund's average annual returns for various periods
compare with those of a broad measure of market performance. Past results are
not an indication of future results.
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would
be lower.)
------------------------------------------------------------------------------
[bar chart]
1990 -0.11%
1991 18.59%
1992 2.30%
1993 35.60%
1994 1.13%
1995 12.87%
1996 18.64%
1997 9.19%
1998 15.54%
1999 56.97%
[end bar chart]
The fund's highest/lowest quarterly results during this time period were:
<TABLE>
<CAPTION>
<S> <C> <C>
HIGHEST 29.10% (quarter ended December 31, 1999)
LOWEST -13.85% (quarter ended September 30, 1990)
</TABLE>
3
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME
<S> <C> <C> <C> <C>
Class A/1/
(with the maximum sales charge 47.96% 20.10% 15.30% 17.66%
deducted)
------------------------------------------------------------------------------
Class B/2/ N/A N/A N/A N/A
------------------------------------------------------------------------------
MSCI EAFE Index/3/ 27.30% 13.15% 7.33% 15.08%
------------------------------------------------------------------------------
</TABLE>
1 The fund began investment operations for Class A shares on April 16, 1984.
2 The fund is beginning investment operations for Class B shares on March 15,
2000.
3 The Morgan Stanley Capital International EAFE (Europe, Australasia, Far East)
Index measures all major stock markets outside North America. This index is
unmanaged and does not reflect sales charges, commissions or expenses. The
lifetime figure is from the date the fund's Class A shares began investment
operations.
Unlike the bar chart on the previous page, this table reflects the fund's
investment results with the maximum initial or deferred sales charge deducted,
as required by Securities and Exchange Commission rules. Class A share results
are shown with the maximum initial sales charge of 5.75% deducted. Sales
charges are reduced for purchases of $25,000 or more. Results would be higher
if they were calculated at net asset value. All fund results reflect the
reinvestment of dividend and capital gain distributions.
Class B shares are subject to a maximum deferred sales charge of 5.00% if
shares are redeemed within the first year of purchasing them. The deferred
sales charge declines thereafter until it reaches 0% after six years. Class B
shares convert to Class A shares after eight years. Since the fund's Class B
shares begin investment operations on March 15, 2000, no results are available
as of the date of this prospectus.
4
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
FEES AND EXPENSES OF THE FUND
<TABLE>
<CAPTION>
SHAREHOLDER FEES
(fees paid directly from your investment) CLASS A CLASS B
--------------------------------------------------------------------------
<S> <C> <C>
Maximum sales charge imposed on purchases 5.75%/1/ 0.00%
(as a percentage of offering price)
--------------------------------------------------------------------------
Maximum sales charge imposed on reinvested dividends 0.00% 0.00%
--------------------------------------------------------------------------
Maximum deferred sales charge 0.00%/2/ 5.00%/3/
--------------------------------------------------------------------------
Redemption or exchange fees 0.00% 0.00%
</TABLE>
1 Sales charges are reduced or eliminated for purchases of $25,000 or more.
2 A contingent deferred sales charge of 1% applies on certain redemptions made
within 12 months following purchases of $1 million or more made without a
sales charge.
3 Deferred sales charges are reduced after 12 months and eliminated after six
years.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets) CLASS A CLASS B/1/
-----------------------------------------------
<S> <C> <C>
Management Fees 0.47% 0.47%
Distribution and/or Service (12b-1) Fees 0.24%/2/ 1.00%/3/
Other Expenses 0.13% 0.13%
Total Annual Fund Operating Expenses 0.84% 1.60%
</TABLE>
1 Based on estimated amounts for the current fiscal year.
2 Class A 12b-1 expenses may not exceed 0.25% of the fund's average net assets
annually.
3 Class B 12b-1 expenses may not exceed 1.00% of the fund's average net assets
annually.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated, that your investment
has a 5% return each year and that the fund's operating expenses remain the
same as shown above. The Class A example reflects the maximum initial sales
charge in Year One. The Class B-assuming redemption example reflects applicable
contingent deferred sales charges through Year Six (after which time they are
eliminated). Both Class B examples reflect Class A expenses for Years 9 and 10
since Class B shares automatically convert to Class A after eight years.
Although your actual costs may be higher or lower, based on these assumptions
your cumulative expenses would be:
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ONE THREE FIVE TEN
<S> <C> <C> <C> <C>
Class A $656 $828 $1,014 $1,553
------------------------------------------------------------------------------
Class B - assuming redemption $663 $905 $1,071 $1,696
Class B - assuming no redemption $163 $505 $ 871 $1,696
</TABLE>
5
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
INVESTMENT OBJECTIVE, STRATEGIES AND RISKS
The fund's investment objective is to provide you with long-term growth of
capital. It invests primarily in stocks of issuers located in Europe or the
Pacific Rim.
The values of equity securities held by the fund may decline in response to
certain events, including those directly involving the companies whose
securities are owned in the fund, adverse conditions affecting the general
economy, overall market declines, world political, social and economic
instability, and currency fluctuations. Investments outside the U.S. may be
affected by these events to a greater extent and may also be affected by
differing securities regulations, and administrative difficulties such as
delays in clearing and settling portfolio transactions. These risks are
potentially heightened in connection with investments in developing countries.
The growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss.
The fund may also hold cash or money market instruments. The size of the fund's
cash position will vary and will depend on various factors, including market
conditions and purchases and redemptions of fund shares. A larger cash position
could detract from the achievement of the fund's objective, but it also would
reduce the fund's exposure in the event of a market downturn and provide
liquidity to make additional investments or to meet redemptions.
The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
securities. The basic investment philosophy of the investment adviser is to
seek undervalued securities that represent good long-term investment
opportunities. Securities may be sold when the investment adviser believes they
no longer represent good long-term value.
6
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
ADDITIONAL INVESTMENT RESULTS
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN/1/ ONE YEAR FIVE YEARS TEN YEARS LIFETIME
<S> <C> <C> <C> <C>
Class A/2/ 56.97% 21.54% 15.99% 18.11%
(with no sales charge deducted)
------------------------------------------------------------------------------
Class B/3/ N/A N/A N/A N/A
------------------------------------------------------------------------------
MSCI EAFE Index/4/ 27.30% 13.15% 7.33% 15.08%
------------------------------------------------------------------------------
Lipper International Funds 40.80% 15.37% 10.54% 14.65%
Average/5/
------------------------------------------------------------------------------
</TABLE>
1 These fund results were calculated at net asset value according to a formula
that is required for all stock and bond funds and include the reinvestment of
dividend and capital gain distributions.
2 The fund began investment operations for Class A shares on April 16, 1984.
3 The fund is beginning investment operations for Class B shares on March 15,
2000.
4 The Morgan Stanley Capital International EAFE (Europe, Australasia, Far East)
Index measures all major stock markets outside North America. This index is
unmanaged and does not reflect sales charges, commissions or expenses. The
lifetime figure is from the date the fund's Class A shares began investment
operations.
5 The Lipper International Funds Average consists of funds that invest assets
in securities with primary trading markets outside the United States. The
results of the underlying funds in the index include the reinvestment of
dividend and capital gain distributions, but do not reflect sales charges and
commissions. The lifetime figure is from the date the fund's Class A shares
began investment operations.
7
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
The following chart illustrates the industry mix of the fund's investment
portfolio as of the end of the fund's fiscal year, March 31, 1999.
INDUSTRY DIVERSIFICATION
[pie chart]
Telecommunications 19.13%
Banking 8.43%
Health & Personal Care 7.20%
Broadcasting & Publishing 5.61%
Electronic Components 5.38%
Other Industries 44.28%
Bonds & Notes 0.56%
Cash & Cash Equivalents 9.41%
[end pie chart]
<TABLE>
<CAPTION>
PERCENT OF TEN LARGEST PERCENT OF
PERCENT INVESTED BY COUNTRY NET ASSETS INDIVIDUAL HOLDINGS NET ASSETS
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EUROPE Mannesmann 3.42%
---------------------------------
United Kingdom 15.4% Telecom Italia 2.50
---------------------------------
Germany 7.0 Astra 2.42
---------------------------------
France 5.6 Telefonos de Mexico 1.67
---------------------------------
Sweden 5.5 Deutsche Telekom 1.65
---------------------------------
Netherlands 4.8 Nokia 1.65
---------------------------------
Italy 4.4 Novartis 1.59
---------------------------------
Switzerland 3.2 News Corp. 1.45
---------------------------------
Finalnd 2.6 Dixons Group 1.37
---------------------------------
Norway 1.1 Ericsson 1.34
---------------------------------
Ireland .9
Denmark .9
Spain .8
Other Europe .6
PACIFIC BASIN ASIA
-----------------------------------------
Japan 13.9%
Australia 6.1
Hong Kong 1.4
South Korea 1.4
Taiwan 1.4
Philippines 1.0
Other Asia .8
THE AMERICAS
-----------------------------------------
Canada 4.0%
Mexico 3.1
Other Americas .5
------------
OTHER
-----------------------------------------
Brazil 1.1%
South Africa .9
India .5
Other Countries 1.7
</TABLE>
Because the fund is actively managed, its holdings will change from time to
time.
8
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
MANAGEMENT AND ORGANIZATION
INVESTMENT ADVISER
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and
other funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio and business
affairs of the fund. The total management fee paid by the fund, as a percentage
of average net assets, for the previous fiscal year is discussed earlier under
"Fees and Expenses of the Fund."
Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company
Institute's Advisory Group on Personal Investing. This policy has also been
incorporated into the fund's code of ethics.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments which are managed by individual counselors.
Counselors decide how their respective segments will be invested, within the
limits provided by a fund's objective(s) and policies and by Capital Research
and Management Company's investment committee. In addition, Capital Research
and Management Company's research professionals may make investment decisions
with respect to a portion of a fund's portfolio. The primary individual
portfolio counselors for EuroPacific Growth Fund are listed on the following
page.
9
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
APPROXIMATE YEARS OF EXPERIENCE
AS AN INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE (INCLUDING THE LAST FIVE YEARS)
AS PORTFOLIO COUNSELOR -----------------------------------
PORTFOLIO (AND RESEARCH PROFESSIONAL, WITH CAPITAL
COUNSELORS FOR IF APPLICABLE) FOR RESEARCH AND
EUROPACIFIC EUROPACIFIC GROWTH FUND MANAGEMENT
GROWTH FUND PRIMARY TITLE(S) (APPROXIMATE) COMPANY
------------------------------------------------------------------------------ OR AFFILIATES TOTAL YEARS
-----------------------------------
<S> <C> <C> <C> <C>
THIERRY Vice Chairman of the Board of 16 years (since the fund 37 years 37 years
VANDEVENTER the fund. Director, Capital began operations)
Research and Management Company
----------------------------------------------------------------
-------------------------------------------------
MARK E. President and Trustee of the 8 years (plus 3 years as a 18 years 18 years
DENNING fund. Director, Capital research professional prior
Research and Management to becoming a portfolio
Company. Senior Vice President, counselor for the fund)
Capital Research Company*
----------------------------------------------------------------
-------------------------------------------------
STEPHEN E. Executive Vice President of the 16 years (since the fund 27 years 34 years
BEPLER fund. Senior Vice President, began operations)
Capital Research Company*
----------------------------------------------------------------
-------------------------------------------------
ROBERT W. Senior Vice President of the 6 years (plus 7 years as a 15 years 15 years
LOVELACE fund. Executive Vice President research professional prior
and Director, Capital Research to becoming a portfolio
Company* counselor for the fund)
-----------------------------------
------------------------------------------------------------------------------
JANET A. Senior Vice President of the 9 years (plus 5 years as a 18 years 24 years
MCKINLEY fund. Director, Capital research professional prior
Research and Management to becoming a portfolio
Company. Senior Vice President, counselor for the fund)
Capital Research Company*
----------------------------------------------------------------
-------------------------------------------------
ALWYN W. Vice President of the fund. 4 years (plus 4 years as a 8 years 12 years
HEONG Vice President, Capital research professional prior
Research Company* to becoming a portfolio
counselor for the fund)
-----------------------------------
------------------------------------------------------------------------------
MARTIAL G. Senior Vice President and 6 years (plus 5 years as a 28 years 28 years
CHAILLET Director, Capital Research research professional prior
Company* to becoming a portfolio
counselor for the fund)
The fund began investment operations on April 16, 1984.
* Company affiliated with Capital Research and Management Company.
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
SHAREHOLDER INFORMATION
SHAREHOLDER SERVICES
American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your
needs and circumstances change. These services may be terminated or modified at
any time upon 60 days' written notice. For your convenience, American Funds
Service Company has four service centers across the country.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
Call toll-Free from anywhere in the U.S.
(8 a.m. to 8 p.m. ET):
800/421-0180
[map of the United States]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Western Western Central Eastern Central Eastern
Service Center Service Center Service Center Service Center
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 2205 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Brea, California San Antonio, Texas Indianapolis, Indiana Norfolk, Virginia
92822-2205 78265-9522 46206-6007 23501-2280
Fax: 714/671-7080 Fax: 210/474-4050 Fax: 317/735-6620 Fax: 757/670-4773
</TABLE>
A COMPLETE DESCRIPTION OF THE SERVICES WE OFFER IS INCLUDED IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is
sent to new shareholders and is available by writing or calling American Funds
Service Company.
You may invest in the fund through various retirement plans. However, Class B
shares generally are not available to certain retirement plans (for example,
group retirement plans such as 401(k) plans, employer-sponsored 403(b) plans,
and money purchase pension and profit sharing plans). Some retirement plans or
accounts held by investment dealers may not offer certain services. If you
have any questions, please contact American Funds Service Company, your plan
administrator/trustee or dealer.
11
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
CHOOSING A SHARE CLASS
The fund offers both Class A and Class B shares. Each share class has its own
sales charge and expense structure, allowing you to choose the class that best
meets your situation.
Factors you should consider in choosing a class of shares include:
- How long you expect to own the shares
- How much you intend to invest
- The expenses associated with owning shares of each class
- Whether you qualify for any reduction or waiver of sales charges (for
example, Class A shares may be a less expensive option over time if you
qualify for a sales charge reduction or waiver)
EACH INVESTOR'S FINANCIAL CONSIDERATIONS ARE DIFFERENT. YOU SHOULD SPEAK WITH
YOUR FINANCIAL ADVISER TO HELP YOU DECIDE WHICH SHARE CLASS IS BEST FOR YOU.
Differences between Class A and Class B shares include:
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------------------------------------------------
<S> <S>
Initial sales charge of up to No initial sales charge.
5.75%. Sales charges are reduced
for purchases of $25,000 or more
(see "Sales Charges - Class A").
------------------------------------------------------------------------------
Distribution and service (12b-1) Distribution and service (12b-1) fees
fees of up to 0.25% annually. of up to 1.00% annually.
------------------------------------------------------------------------------
Higher dividends than Class B Lower dividends than Class A shares due
shares due to lower annual to higher distribution fees and other
expenses. expenses.
------------------------------------------------------------------------------
No contingent deferred sales charge A contingent deferred sales charge if
(except on certain redemptions on you sell shares within six years of
purchases of $1 million or more buying them. The charge starts at 5%
bought without an initial sales and declines thereafter until it
charge). reaches 0% after six years. (see "Sales
Charges - Class B").
------------------------------------------------------------------------------
No purchase maximum. Maximum purchase of $100,000.
------------------------------------------------------------------------------
Automatic conversion to Class A shares
after eight years, reducing future
annual expenses.
------------------------------------------------------------------------------
</TABLE>
12
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
PURCHASE AND EXCHANGE OF SHARES
PURCHASE
Generally, you may open an account by contacting any investment dealer (who may
impose transaction charges in addition to those described in this prospectus)
authorized to sell the fund's shares. You may purchase additional shares using
various options described in the statement of additional information and
"Welcome to the Family."
EXCHANGE
You may exchange your shares into shares of the same class of other funds in
The American Funds Group generally without a sales charge. For purposes of
computing the contingent deferred sales charge on Class B shares, the length of
time you have owned your shares will be measured from the date of original
purchase and will not be affected by any exchange.
Exchanges of shares from the money market funds initially purchased without a
sales charge generally will be subject to the appropriate sales charge.
Exchanges have the same tax consequences as ordinary sales and purchases. See
"Transactions by Telephone..." for information regarding electronic exchanges.
THE FUND AND AMERICAN FUNDS DISTRIBUTORS, THE FUND'S PRINCIPAL UNDERWRITER,
RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER FOR ANY REASON. ALTHOUGH THERE
IS CURRENTLY NO SPECIFIC LIMIT ON THE NUMBER OF EXCHANGES YOU CAN MAKE IN A
PERIOD OF TIME, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO
REJECT ANY PURCHASE ORDER AND MAY TERMINATE THE EXCHANGE PRIVILEGE OF ANY
INVESTOR WHOSE PATTERN OF EXCHANGE ACTIVITY THEY HAVE DETERMINED INVOLVES
ACTUAL OR POTENTIAL HARM TO THE FUND.
<TABLE>
<CAPTION>
PURCHASE MINIMUMS FOR CLASS A AND B SHARES
<S> <C>
To establish an account (including retirement plan accounts) $ 250
For a retirement plan account through payroll deduction $ 25
To add to an account $ 50
For a retirement plan account through payroll deduction $ 25
PURCHASE MAXIMUM FOR CLASS B SHARES $100,000
</TABLE>
13
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
SHARE PRICE
The fund calculates its share price, also called net asset value, as of
approximately 4:00 p.m. New York time, which is the normal close of trading on
the New York Stock Exchange, every day the Exchange is open. In calculating net
asset value, market prices are used when available. If a market price for a
particular security is not available, the fund will determine the appropriate
price for the security.
Your shares will be purchased at the net asset value plus any applicable sales
charge in the case of Class A shares, or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request. Sales of certain Class A and B shares may be subject to contingent
deferred sales charges.
---------------------------------------------------------
SALES CHARGES
CLASS A
The initial sales charge you pay when you buy Class A shares differs depending
upon the amount you invest and may be reduced for larger purchases as indicated
below.
<TABLE>
<CAPTION>
SALES CHARGE AS A PERCENTAGE OF
----------------------------------
DEALER
NET COMMISSION
OFFERING AMOUNT AS % OF
INVESTMENT PRICE INVESTED OFFERING PRICE
------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $25,000 5.75% 6.10% 5.00%
------------------------------------------------------------------------------
$25,000 but less than 5.00% 5.26% 4.25%
$50,000
------------------------------------------------------------------------------
$50,000 but less than 4.50% 4.71% 3.75%
$100,000
------------------------------------------------------------------------------
$100,000 but less than 3.50% 3.63% 2.75%
$250,000
------------------------------------------------------------------------------
$250,000 but less than 2.50% 2.56% 2.00%
$500,000
------------------------------------------------------------------------------
$500,000 but less than 2.00% 2.04% 1.60%
$750,000
------------------------------------------------------------------------------
$750,000 but less than $1
million 1.50% 1.52% 1.20%
------------------------------------------------------------------------------
$1 million or more and certain other
investments described below see below see below see below
</TABLE>
CLASS A PURCHASES NOT SUBJECT TO SALES CHARGE
Investments of $1 million or more are sold with no initial sales charge.
HOWEVER, A 1% CONTINGENT DEFERRED SALES CHARGE MAY BE IMPOSED IF REDEMPTIONS
ARE MADE WITHIN ONE YEAR OF PURCHASE. Employer-sponsored defined contribution--
14
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
type plans investing $1 million or more, or with 100 or more eligible
employees, and Individual Retirement Account rollovers involving retirement
plan assets invested in the American Funds, may invest with no sales charge and
are not subject to a contingent deferred sales charge. Investments made
through retirement plans, endowments or foundations with $50 million or more in
assets, or through certain qualified fee-based programs may also be made with
no sales charge and are not subject to a contingent deferred sales charge. The
fund may pay a dealer concession of up to 1% under its Plan of Distribution on
investments made with no initial sales charge.
CLASS B
Class B shares are sold without any initial sales charge. However, a
contingent deferred sales charge may be applied to shares you redeem within six
years of purchase, as shown in the table below.
<TABLE>
<CAPTION>
Contingent deferred sales charge
on shares sold within year as a % of shares being sold
---------------------------------------------------------------
<S> <S>
1 5.00%
2 4.00%
3 4.00%
4 3.00%
5 2.00%
6 1.00%
</TABLE>
Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to a contingent deferred sales charge. In addition, the
contingent deferred sales charge may be waived in certain circumstances. See
"Contingent Deferred Sales Charge Waivers for Class B Shares" below. The
contingent deferred sales charge is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. For purposes
of determining the contingent deferred sales charge, if you sell only some of
your shares, shares that are not subject to any contingent deferred sales
charge will be sold first and then shares that you have owned the longest.
CLASS B CONVERSION TO A SHARES
Class B shares automatically convert to Class A shares in the month of the
eight-year anniversary of the purchase date. The Internal Revenue Service
currently takes the position that this automatic conversion is not taxable.
Should their position change, shareholders would still have the option of
converting but may face certain tax consequences. Please see the statement of
additional information for more information.
15
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
SALES CHARGE REDUCTIONS AND WAIVERS
You must let your investment dealer or American Funds Service Company know if
you qualify for a reduction in your Class A sales charge or waiver of your
Class B contingent deferred sales charge using one or any combination of the
methods described below, in the statement of additional information and
"Welcome to the Family."
REDUCING YOUR CLASS A SALES CHARGES
You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your Class A sales charge.
AGGREGATING ACCOUNTS
To receive a reduced Class A sales charge, investments made by you and your
immediate family (see above) may be aggregated if made for their own account(s)
and/or:
- trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may be
aggregated with accounts of the person who is the primary beneficiary of
the trust.
- solely controlled business accounts.
- single-participant retirement plans.
Other types of accounts may also be aggregated. You should check with your
financial adviser or consult the statement of additional information or
"Welcome to the Family" for more information.
CONCURRENT PURCHASES
You may combine simultaneous purchases of Class A and/or B shares of two or
more American Funds, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to qualify for a
reduced Class A sales charge. Direct purchases of money market funds are
excluded.
RIGHTS OF ACCUMULATION
You may take into account the current value of your existing Class A and B
holdings in the American Funds, as well as individual holdings in various
American Legacy variable annuities or variable life insurance policies, to
determine your Class A sales charge. Direct purchases of money market funds are
excluded.
STATEMENT OF INTENTION
You can reduce the sales charge you pay on your Class A share purchases by
establishing a Statement of Intention. A Statement of Intention allows you to
16
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
combine all Class A and B share non-money market fund purchases, as well as
individual American Legacy variable annuity and life insurance policies you
intend to make over a 13-month period, to determine the applicable sales
charge. At your request purchases made during the previous 90 days may be
included; however, capital appreciation and reinvested dividends and capital
gains do not apply toward these combined purchases. A portion of your account
may be held in escrow to cover additional Class A sales charges which may be
due if your total investments over the 13-month period do not qualify for the
applicable sales charge reduction.
CONTINGENT DEFERRED SALES CHARGE WAIVERS FOR CLASS B SHARES
The contingent deferred sales charge on Class B shares may be waived in the
following cases:
- to receive payments through systematic withdrawal plans (up to 12% of the
value of your account);
- to receive certain distributions, such as required minimum distributions,
from retirement accounts; or
- for redemptions due to death or post-purchase disability of the
shareholder.
For more information, please consult your financial adviser, the statement of
additional information or "Welcome to the Family."
---------------------------------------------------------
PLANS OF DISTRIBUTION
The fund has Plans of Distribution or "12b-1 Plans" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of trustees. The plans
provide for annual expenses of up to 0.25% for Class A shares and up to 1.00%
for Class B shares. Up to 0.25% of these payments are used to pay service fees
to qualified dealers for providing certain shareholder services. The remaining
0.75% expense for Class B shares is used for financing commissions paid to your
dealer. The 12b-1 fees paid by the fund, as a percentage of average net assets,
for the previous fiscal year is indicated above under "Fees and Expenses of the
Fund." Since these fees are paid out of the fund's assets or income on an
ongoing basis, over time they will increase the cost and reduce the return of
an investment. The higher fees for Class B shares may cost you more over time
than paying the initial sales charge for Class A shares.
OTHER COMPENSATION TO DEALERS
American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for, dealers as described in the statement of additional
information.
17
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
HOW TO SELL SHARES
Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:
THROUGH YOUR DEALER (CERTAIN CHARGES MAY APPLY)
- Shares held for you in your dealer's name must be sold through the dealer.
WRITING TO AMERICAN FUNDS SERVICE COMPANY
- Requests must be signed by the registered shareholder(s).
- A signature guarantee is required if the redemption is:
-- Over $50,000;
-- Made payable to someone other than the registered shareholder(s); or
-- Sent to an address other than the address of record, or an address of
record which has been changed within the last 10 days.
- Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.
TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE/(R)/ OR AMERICAN FUNDSLINE ONLINE/(R)/:
- Redemptions by telephone or fax (including American FundsLine and American
FundsLine OnLine) are limited to $50,000 per shareholder each day.
- Checks must be made payable to the registered shareholder.
- Checks must be mailed to an address of record that has been used with the
account for at least 10 days.
TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE OR FUNDSLINE ONLINE
Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all
of these services. You may reinstate these services at any time.
Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, and each of their
respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liabilities (including attorney fees) which may
be incurred in connection with the exercise of these privileges, provided
American Funds Service Company employs reasonable procedures to confirm that
the instructions received from any person with appropriate account information
are genuine. If reasonable procedures are not employed, the fund may be liable
for losses due to unauthorized or fraudulent instructions.
18
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to you, if any, usually twice a year.
Capital gains, if any, are usually distributed twice a year. When a dividend or
capital gain is distributed, the net asset value per share is reduced by the
amount of the payment.
You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash. Most shareholders do not elect
to take capital gain distributions in cash because these distributions reduce
principal value.
TAXES ON DISTRIBUTIONS
Distributions you receive from the fund may be subject to income tax and may
also be subject to state or local taxes - unless you are exempt from taxation.
For federal tax purposes, any taxable dividends and distributions of short-term
capital gains are treated as ordinary income. The fund's distributions of net
long-term capital gains are taxable to you as long-term capital gains. Any
taxable distributions you receive from the fund will normally be taxable to you
when made, regardless of whether you reinvest distributions or receive them in
cash.
TAXES ON TRANSACTIONS
Your redemptions, including exchanges, may result in a capital gain or loss for
federal tax purposes. A capital gain or loss on your investment in the fund is
the difference between the cost of your shares, including any sales charges,
and the price you receive when you sell them.
Please see the statement of additional information, the "Welcome to the Family"
guide, and your tax adviser for further information.
19
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
--------------------------------------------------------------
The financial highlights table is intended to help you understand the fund's
results for the past five years and is currently only shown for Class A shares.
A similar table will be shown for Class B shares beginning with the fund's
2000 fiscal year end. Certain information reflects financial results for a
single fund share. The total returns in the table represent the rate that an
investor would have earned or lost on an investment in the fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, whose report, along with the fund's
financial statements, is included in the statement of additional information,
which is available upon request.
<TABLE>
<CAPTION>
YEARS ENDED MARCH 31
-------------------------------------------------
Six months ended
9/30/99/1/ 1999 1998 1997 1996 1995
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, $30.21 $29.56 $26.70 $24.28 $20.89 $21.95
Beginning of Year
--------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .24 .42 .45 .46 .46 .35
Net gains or losses on
securities (both
realized and 4.055 1.85 4.79 3.28 3.63 (.19)
unrealized)
--------------------------------------------------------------------------------------------
Total from investment 4.295 2.27 5.24 3.74 4.09 .16
operations
--------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends (from net
investment income) (.105) (.36) (.433) (.41) (.49) (.317)
Dividends (from net
realized
non-U.S. currency - - (.017) (.03) - (.003)
gains)/2/
--------------------------------------------------------------------------------------------
Distributions (from (.15) (1.26) (1.93) (.88) (.21) (.90)
capital gains)
--------------------------------------------------------------------------------------------
Total distributions (.255) (1.62) (2.38) (1.32) (.70) (1.22)
--------------------------------------------------------------------------------------------
Net Asset Value, $34.25 $30.21 $29.56 $26.70 $24.28 $20.89
End of Year
--------------------------------------------------------------------------------------------
Total return/3/ 14.31%/4/ 8.18% 20.97% 15.88% 19.84% .71%
--------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $25,954 $22,083 $21,316 $16,737 $12,335 $8,588
year (in millions)
--------------------------------------------------------------------------------------------
Ratio of expenses to .43%/4/ .84% .86% .90% .95% .97%
average net assets
--------------------------------------------------------------------------------------------
Ratio of net income .76%/4/ 1.45% 1.64% 1.77% 2.09% 1.80%
to average net assets
--------------------------------------------------------------------------------------------
Portfolio turnover
rate 13.15%/4/ 31.73% 30.51% 25.82% 21.77% 16.02%
1Unaudited
2Realized non-U.S. currency gains are treated as ordinary income for federal income tax
purposes.
3 Excludes maximum sales charge.
4Based on operations for the period shown and, accordingly, not representative of a full
year.
</TABLE>
20
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
NOTES
21
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
NOTES
22
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
FOR SHAREHOLDER SERVICES American Funds Service Company
800/421-0180
FOR RETIREMENT PLAN SERVICES Call your employer or plan administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900 Ext. 11
FOR 24-HOUR INFORMATION American FundsLine(R)
800/325-3590
American FundsLine OnLine(R)
http://www.americanfunds.com
</TABLE>
Telephone conversations may be recorded or monitored for
verification, recordkeeping and quality assurance purposes.
* * * * *
MULTIPLE TRANSLATIONS This prospectus may be translated into other languages.
If there is any inconsistency or ambiguity as to the meaning of any word or
phrase in a translation, the English text will prevail.
ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS Contains additional information
about the fund including financial statements, investment results, portfolio
holdings, a statement from portfolio management discussing market conditions
and the fund's investment strategies, and the independent accountants' report
(in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The SAI contains
more detailed information on all aspects of the fund, including the fund's
financial statements and is incorporated by reference into this prospectus.
The codes of ethics describe the personal investing policies adopted by the
fund and the fund's investment adviser and its affiliated companies.
The codes of ethics and current SAI have been filed with the Securities and
Exchange Commission ("SEC"). These and other related materials about the fund
are available for review or to be copied at the SEC's Public Reference Room in
Washington, D.C. (202/942-8090) or on the EDGAR database on the SEC's Internet
Web site at http://www.sec.gov, or, after payment of a duplicating fee, via
e-mail request to [email protected] or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102.
HOUSEHOLD MAILINGS Each year you are automatically sent an updated
prospectus, annual and semi-annual report for the fund. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents
will be sent to shareholders that are part of the same family and share the
same residential address.
If you would like to receive individual copies of these documents, or a free
copy of the SAI or Codes of Ethics, please call American Funds Service Company
at 800/421-0180 or write to the Secretary of the fund at 333 South Hope
Street, Los Angeles, California 90071.
Investment Company File No. 811-3734
Printed on recycled paper
<PAGE>
EUROPACIFIC GROWTH FUND
Part B
Statement of Additional Information
March 15, 2000
This document is not a prospectus but should be read in conjunction with the
current prospectus of EuroPacific Growth Fund (the "fund" or "EUPAC") dated
March 15, 2000. The prospectus may be obtained from your investment dealer or
financial planner or by writing to the fund at the following address:
EuroPacific Growth Fund
Attention: Secretary
333 South Hope Street
Los Angeles, California 90071
(213) 486-9200
Shareholders who purchase shares at net asset value through eligible retirement
plans should note that not all of the services or features described below may
be available to them, and they should contact their employer for details.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Item Page No.
- ---- --------
<S> <C>
Certain Investment Limitations and Guidelines . . . . . . . . . . . 2
Description of Certain Securities and Investment Techniques . . . . 2
Fundamental Policies and Investment Restrictions. . . . . . . . . . 5
Fund Organization and Voting Rights . . . . . . . . . . . . . . . . 7
Fund Trustees and Officers. . . . . . . . . . . . . . . . . . . . . 8
Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . 14
Purchase of Shares. . . . . . . . . . . . . . . . . . . . . . . . . 19
Sales Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Sales Charge Reductions and Waivers . . . . . . . . . . . . . . . . 23
Individual Retirement Account (IRA) Rollovers . . . . . . . . . . . 26
Price of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Selling Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Shareholder Account Services and Privileges . . . . . . . . . . . . 29
Execution of Portfolio Transactions . . . . . . . . . . . . . . . . 32
General Information . . . . . . . . . . . . . . . . . . . . . . . . 32
Class A Share Investment Results and Related Statistics . . . . . . 33
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Financial Statements
</TABLE>
EuroPacific Growth Fund - Page 1
<PAGE>
CERTAIN INVESTMENT LIMITATIONS AND GUIDELINES
The following limitations and guidelines are considered at the time of purchase,
under normal market conditions, and are based on a percentage of the fund's net
assets unless otherwise noted. This summary is not intended to reflect all of
the fund's investment limitations.
INVESTMENT OBJECTIVE
. Generally, the fund will invest at least 65% of its assets in securities of
issuers domiciled in Europe or the Pacific Basin.
DEBT SECURITIES
. The fund may invest up to 5% of its assets in straight debt securities
rated Baa and BBB or below by Moody's Investor Services, Inc. or Standard &
Poor's Corporation or in unrated securities that are determined to be of
equivalent quality by Capital Research and Management Company (the
"Investment Adviser").
The fund may experience difficulty liquidating certain portfolio securities
during significant market declines or periods of heavy redemptions.
DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES
The descriptions below are intended to supplement the material in the prospectus
under "Investment Objective, Strategies and Risks."
EQUITY SECURITIES - Equity securities represent an ownership position in a
company. These securities may include common stocks and securities with equity
conversion or purchase rights. The prices of equity securities fluctuate based
on changes in the financial condition of their issuers and on market and
economic conditions. The fund's results will be related to the overall markets
for these securities.
INVESTING IN VARIOUS COUNTRIES - Investing outside the U.S. involves special
risks, caused by, among other things: currency controls, fluctuating currency
values; different accounting, auditing, and financial reporting regulations and
practices in some countries; changing local and regional economic, political,
and social conditions; expropriation or confiscatory taxation; greater market
volatility; differing securities market structures; and various administrative
difficulties such as delays in clearing and settling portfolio transactions or
in receiving payment of dividends. However, in the opinion of Capital Research
and Management Company, investing outside the U.S. also can reduce certain
portfolio risks due to greater diversification opportunities.
The risks described above are potentially heightened in connection with
investments in developing countries. Although there is no universally accepted
definition, a developing country is generally considered to be a country which
is in the initial stages of its industrialization cycle with a low per capita
gross national product. For example, political and/or economic structures in
these countries may be in their infancy and developing rapidly. Historically,
the markets of developing countries have been more volatile than the markets of
developed countries. The fund may only invest in securities of issuers in
developing countries to a limited extent.
Additional costs could be incurred in connection with the fund's investment
activities outside the U.S. Brokerage commissions may be higher outside the
U.S., and the fund will bear certain
EuroPacific Growth Fund - Page 2
<PAGE>
expenses in connection with its currency transactions. Furthermore, increased
custodian costs may be associated with the maintenance of assets in certain
jurisdictions.
CURRENCY TRANSACTIONS - The fund can purchase and sell currencies to facilitate
securities transactions and enter into forward currency contracts to protect
against changes in currency exchange rates. A forward currency contract is an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. Forward currency contracts
entered into by the fund will involve the purchase or sale of one currency
against the U.S. dollar. While entering into forward currency transactions could
minimize the risk of loss due to a decline in the value of the hedged currency,
it could also limit any potential gain which might result from an increase in
the value of the currency. The fund will not generally attempt to protect
against all potential changes in exchange rates. The fund will segregate liquid
assets which will be marked to market daily to meet its forward contract
commitments to the extent required by the Securities and Exchange Commission.
Certain provisions of the Internal Revenue Code may affect the extent to which
the fund may enter into forward contracts. Such transactions may also affect,
for U.S. federal income tax purposes, the character and timing of income, gain
or loss recognized by the fund.
DEBT SECURITIES - Bonds and other debt securities are used by issuers to borrow
money. Issuers pay investors interest and generally must repay the amount
borrowed at maturity. Some debt securities, such as zero coupon bonds, do not
pay current interest, but are purchased at a discount from their face values.
The prices of debt securities fluctuate depending on such factors as interest
rates, credit quality, and maturity. In general their prices decline when
interest rates rise and vice versa.
Lower quality, lower rated bonds rated Ba or below by Standard & Poor's
Corporation and BB or below by Moody's Investors Services, Inc. (or unrated but
considered to be of equivalent quality) are described by the rating agencies as
speculative and involve greater risk of default or price changes due to changes
in the issuer's creditworthiness than higher rated bonds, or they may already be
in default. The market prices of these securities may fluctuate more than higher
quality securities and may decline significantly in periods of general economic
difficulty. It may be more difficult to dispose of, or to determine the value
of, lower quality, lower rated bonds.
Certain risk factors relating to "lower quality, lower rated bonds" are
discussed below.
SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES - Lower quality, lower
rated bonds can be sensitive to adverse economic changes and political and
corporate developments and may be less sensitive to interest rate changes.
During an economic downturn or substantial period of rising interest rates,
highly leveraged issuers may experience financial stress that would
adversely affect their ability to service their principal and interest
payment obligations, to meet projected business goals, and to obtain
additional financing. In addition, periods of economic uncertainty and
changes can be expected to result in increased volatility of market prices
and yields of lower quality, lower rated bonds.
PAYMENT EXPECTATIONS - Lower quality, lower rated bonds, like other bonds,
may contain redemption or call provisions. If an issuer exercises these
provisions in a declining interest rate market, the fund would have to
replace the security with a lower yielding security, resulting in a
decreased return for investors. If the issuer of a bond
EuroPacific Growth Fund - Page 3
<PAGE>
defaults on its obligations to pay interest or principal or enters into
bankruptcy proceedings, the fund may incur losses or expenses in seeking
recovery of amounts owed to it.
LIQUIDITY AND VALUATION - There may be little trading in the secondary
market for particular bonds, which may affect adversely the fund's ability
to value accurately or dispose of such bonds. Adverse publicity and
investor perceptions, whether or not based on fundamental analysis, may
decrease the values and liquidity of lower quality, lower rated bonds,
especially in a thin market.
The Investment Adviser attempts to reduce the risks described above through
diversification of the portfolio and by credit analysis of each issuer as well
as by monitoring broad economic trends and corporate and legislative
developments, but there can be no assurance that it will be successful in doing
so.
SECURITIES WITH EQUITY AND DEBT CHARACTERISTICS - The fund may invest in
securities that have a combination of equity and debt characteristics such as
non-convertible preferred stocks and convertible securities. These securities
may at times resemble equity more than debt and vice versa. The risks of
convertible preferred stock may be similar to those of equity securities. Some
types of convertible preferred stock automatically convert into common stock.
Non-convertible preferred stock with stated redemption rates are similar to debt
in that they have a stated dividend rate akin to the coupon of a bond or note
even though they are often classified as equity securities. The prices and
yields of non-convertible preferred stock generally move with changes in
interest rates and the issuer's credit quality, similar to the factors affecting
debt securities.
Bonds, convertible preferred stock, and other securities may sometimes be
converted into common stock or other securities at a stated conversion ratio.
These securities prior to conversion pay a fixed rate of interest or a dividend.
Because convertible securities have both debt and equity characteristics, their
value varies in response to many factors, including the value of the underlying
equity, general market and economic conditions, convertible market valuations,
as well as changes in interest rates, credit spreads, and the credit quality of
the issuer.
WARRANTS AND RIGHTS - The fund may purchase warrants, which may be issued
together with bonds or preferred stocks. Warrants generally entitle the holder
to buy a proportionate amount of common stock at a specified price, usually
higher than the current market price. Warrants may be issued with an expiration
date or in perpetuity. Rights are similar to warrants except that they normally
entitle the holder to purchase common stock at a lower price than the current
market price.
U.S. GOVERNMENT SECURITIES - Securities guaranteed by the U.S. Government
include direct obligations of the U.S. Treasury (such as Treasury bills, notes
and bonds). For these securities, the payment of principal and interest is
unconditionally guaranteed by the U.S. Government, and thus they are of the
highest possible credit quality. Such securities are subject to variations in
market value due to fluctuations in interest rates, but, if held to maturity,
will be paid in full.
Certain securities issued by U.S. Government instrumentalities and certain
federal agencies are neither direct obligations of, nor guaranteed by, the
Treasury. However, they generally involve federal sponsorship in one way or
another; some are backed by specific types of collateral; some are supported by
the issuer's right to borrow from the Treasury; some are supported by the
EuroPacific Growth Fund - Page 4
<PAGE>
discretionary authority of the Treasury to purchase certain obligations of the
issuer; and others are supported only by the credit of the issuing government
agency or instrumentality. These agencies and instrumentalities include, but are
not limited to, Farmers Home Administration, Federal Home Loan Bank, Federal
Home Loan Mortgage Corporation, Federal National Mortgage Association, Tennessee
Valley Authority, and Federal Farm Credit Bank System.
CASH AND CASH EQUIVALENTS - These securities include (i) commercial paper (e.g.,
short-term notes up to 9 months in maturity issued by corporations, governmental
bodies or bank/ corporation sponsored conduits (asset backed commercial paper)),
(ii) commercial bank obligations (e.g., certificates of deposit, bankers'
acceptances (time drafts on a commercial bank where the bank accepts an
irrevocable obligation to pay at maturity)), (iii) savings association and
savings bank obligations (e.g., bank notes and certificates of deposit issued by
savings banks or savings associations), (iv) securities of the U.S. Government,
its agencies or instrumentalities that mature, or may be redeemed, in one year
or less, and (v) corporate bonds and notes that mature, or that may be redeemed,
in one year or less.
REPURCHASE AGREEMENTS - The fund may enter into repurchase agreements, under
which it buys a security and obtains a simultaneous commitment from the seller
to repurchase the security at a specified time and price. Repurchase agreements
permit the fund to maintain liquidity and earn income over periods of time as
short as overnight. The seller must maintain with the fund's custodian
collateral equal to at least 100% of the repurchase price, including accrued
interest, as monitored daily by the Investment Adviser. The fund will only enter
into repurchase agreements involving securities in which it could otherwise
invest and with selected banks and securities dealers whose financial condition
is monitored by the Investment Adviser. If the seller under the repurchase
agreement defaults, the fund may incur a loss if the value of the collateral
securing the repurchase agreement has declined and may incur disposition costs
in connection with liquidating the collateral. If bankruptcy proceedings are
commenced with respect to the seller, realization upon the collateral by the
fund may be delayed or limited.
RESTRICTED SECURITIES AND LIQUIDITY - The fund may purchase securities subject
to restrictions on resale. All such securities not actively traded will be
considered illiquid unless they have been specifically determined to be liquid
under procedures which may be adopted by the fund's board of trustees, taking
into account factors such as the frequency and volume of trading, the commitment
of dealers to make markets and the availability of qualified investors, all of
which can change from time to time. The fund may incur certain additional costs
in disposing of illiquid securities.
FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS
FUNDAMENTAL POLICIES - The fund has adopted the following fundamental policies
and investment restrictions which may not be changed without approval by holders
of a majority of its outstanding shares. Such majority is defined in the
Investment Company Act of 1940 ("1940 Act") as the vote of the lesser of (i) 67%
or more of the outstanding voting securities present at a meeting, if the
holders of more than 50% of the outstanding voting securities are present in
person or by proxy, or (ii) more than 50% of the outstanding voting securities.
All percentage limitations are considered at the time securities are purchased
and are based on the fund's net assets unless otherwise indicated. None of the
following investment restrictions involving a maximum percentage of assets will
be considered violated unless the excess occurs immediately after, and is caused
by, an acquisition by the fund.
EuroPacific Growth Fund - Page 5
<PAGE>
1. Invest in securities of another issuer (other than the U.S. government or
its agencies or instrumentalities), if immediately after and as a result of such
investment more than 5% of the value of the total assets would be invested in
the securities of such other issuer (except with respect to 25% of the value of
the total assets, the fund may exceed the 5% limitation with regards to
investments in the securities of any one foreign government);
2. Invest in companies for the purpose of exercising control or management;
3. Invest more than 25% of the value of its total assets in the securities of
companies primarily engaged in any one industry;
4. Invest more than 5% of its total assets in the securities of other
investment companies; such investments shall be limited to 3% of the voting
stock of any investment company provided, however, that investment in the open
market of a closed-end investment company where no more than customary brokers'
commissions are involved and investment in connection with a merger,
consolidation, acquisition or reorganization shall not be prohibited by this
restriction;
5. Buy or sell real estate in the ordinary course of its business; however,
the fund may invest in securities secured by real estate or interests therein or
issued by companies, including real estate investment trusts and funds, which
invest in real estate or interests therein;
6. Buy or sell commodities or commodity contracts in the ordinary course of
its business, provided, however, that entering into foreign currency contracts
shall not be prohibited by this restriction;
7. Invest more than 10% of the value of its total assets in securities which
are not readily marketable or more than 5% of the value of its total assets in
securities which are subject to legal or contractual restrictions on resale
(except repurchase agreements) or engage in the business of underwriting of
securities of other issuers, except to the extent that the disposal of an
investment position may technically constitute the fund an underwriter as that
term is defined under the Securities Act of 1933. The fund may buy and sell
securities outside the U.S. which are not registered with the Securities and
Exchange Commission or marketable in the U.S. without regard to this
restriction. The fund may not enter into any repurchase agreement if, as a
result, more than 10% of total assets would be subject to repurchase agreements
maturing in more than seven days. (See "Repurchase Agreements" above);8. Lend
any of its assets; provided, however that entering into repurchase agreements,
investment in government obligations, publicly traded bonds, debentures, other
debt securities or in cash equivalents such as short term commercial paper,
certificates of deposit, or bankers acceptances, shall not be prohibited by this
restriction;
9. Sell securities short except to the extent that the fund contemporaneously
owns or has the right to acquire, at no additional cost, securities identical to
those sold short;
10. Purchase securities on margin;
11. Borrow amounts in excess of 5% of the value of its total assets or issue
senior securities. In any event, the fund may borrow only as a temporary measure
for extraordinary or emergency purposes and not for investment in securities;
12. Mortgage, pledge or hypothecate its total assets to any extent;
EuroPacific Growth Fund - Page 6
<PAGE>
13. Purchase or retain the securities of any issuer, if those individual
officers and trustees of the fund, its investment adviser or principal
underwriter, each owning beneficially more than ^ of 1% of the securities of
such issuer, together own more than 5% of the securities of such issuer;
14. Invest more than 5% of the value of its total assets in securities of
companies having, together with their predecessors, a record of less than three
years of continuous operation;
15. Invest in puts, calls, straddles or spreads, or combinations thereof; or
16. Purchase partnership interests in oil, gas, or mineral exploration,
drilling or mining ventures.
With respect to fundamental investment restriction #7, the fund will not invest
more than 10% of the value of its net assets in securities which are not readily
marketable or more than 5% of the value of its net assets in securities which
are subject to legal or contractual restrictions on resale (except repurchase
agreements).
In addition, it is a non-fundamental policy of the fund as to 75% of the fund's
total assets, investments in any one issuer will be limited to no more than 10%
of the voting securities of such issuer.
FUND ORGANIZATION AND VOTING RIGHTS
The fund, an open-end, diversified management investment company, was organized
as a Massachusetts business trust on May 17, 1983.
All fund operations are supervised by the fund's Board of Trustees which meets
periodically and performs duties required by applicable state and federal laws.
Members of the board who are not employed by Capital Research and Management
Company or its affiliates are paid certain fees for services rendered to the
fund as described in "Trustees and Trustee Compensation" below. They may elect
to defer all or a portion of these fees through a deferred compensation plan in
effect for the fund.
The fund has two classes of shares - Class A and Class B. The shares of each
class represent an interest in the same investment portfolio. Each class has
equal rights as to voting, redemption, dividends and liquidation, except that
each class bears different distribution expenses and may bear different transfer
agent fees and other expenses properly attributable to the particular class as
approved by the Board of Trustees. Class A and Class B shareholders have
exclusive voting rights with respect to the rule 12b-1 Plans adopted in
connection with the distribution of shares and on other matters in which the
interests of one class are different from interests in another class. Shares of
all classes of the fund vote together on matters that affect all classes in
substantially the same manner. Each class votes as a class on matters that
affect that class alone.
The fund does not hold annual meetings of shareholders. However, significant
matters which require shareholder approval, such as certain elections of board
members or a change in a fundamental investment policy, will be presented to
shareholders at a meeting called for such purpose. Shareholders have one vote
per share owned. At the request of the holders of at least 10% of the shares,
the fund will hold a meeting at which any member of the board could be removed
by a majority vote.
EuroPacific Growth Fund - Page 7
<PAGE>
FUND TRUSTEES AND OFFICERS
Trustees and Trustee Compensation
<TABLE>
<CAPTION>
AGGREGATE
COMPENSATION
(INCLUDING VOLUNTARILY
DEFERRED
COMPENSATION/1/)
FROM THE FUND
POSITION DURING FISCAL YEAR
WITH PRINCIPAL OCCUPATION(S) DURING ENDED
NAME, ADDRESS AND AGE REGISTRANT PAST 5 YEARS MARCH 31, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Elisabeth Allison Trustee Administrative Director, ANZI, Ltd. $ 20,900
ANZI, Ltd. (financial publishing and consulting);
1770 Massachusetts Ave. Publishing Consultant, Harvard Medical
Cambridge, MA 02140 School; former Senior Vice President,
Age: 53 Planning and Development, McGraw Hill,
Inc.
- -----------------------------------------------------------------------------------------------------------------
+ Mark E. Denning President, Director, Capital Research and None/4/
25 Bedford Street Principal Management Company. Senior Vice
London, England Executive President, Capital Research Company*
Age: 42 Officer and
Trustee
- -----------------------------------------------------------------------------------------------------------------
+ Gina H. Despres Chairman Senior Vice President, Capital None/4/
3000 K Street, N.W. of the Research and Management Company
Washington, DC 20007 Board
Age: 58
- -----------------------------------------------------------------------------------------------------------------
Robert A. Fox Trustee President and Chief Executive Officer, $20,000/3/
P.O. Box 457 Foster Farms, Inc.
Livingston, CA 95334
Age: 62
- -----------------------------------------------------------------------------------------------------------------
Alan Greenway Trustee President, Greenway Associates, Inc. $ 20,900
7413 Fairway Road (management consulting services)
La Jolla, CA 92037
Age: 72
- -----------------------------------------------------------------------------------------------------------------
Koichi Itoh Trustee Group Vice President - Asia/Pacific, $22,150/3/
Autosplice Inc. Autosplice Inc., former President and
3-7-39 Minami-cho Chief Executive Officer, IMPAC
Higashi-Kurume City (management consulting services);
Tokyo, Japan 203-0031 former Managing Partner, VENCA
Age: 59 Management (venture capital)
- -----------------------------------------------------------------------------------------------------------------
William H. Kling Trustee President, Minnesota Public Radio; $20,000/3/
45 East Seventh Street President, Greenspring Co.; former
St. Paul, MN 55101 President, American Public Radio (now
Age: 57 Public Radio International)
- -----------------------------------------------------------------------------------------------------------------
John G. McDonald Trustee The IBJ Professor of Finance, Graduate $20,000/3/
Graduate School of School of Business, Stanford
Business University
Stanford University
Stanford, CA 94305
Age: 62
- -----------------------------------------------------------------------------------------------------------------
++ William I. Miller Trustee Chairman of the Board, Irwin Financial $20,900/3/
500 Washington Street Corporation
Box 929
Columbus, IN 47202
Age: 43
- -----------------------------------------------------------------------------------------------------------------
Kirk P. Pendleton Trustee Chairman/Chief Executive Officer, $20,900/3/
Cairnwood, Inc. Cairnwood, Inc. (venture capital
75 James Way investment)
Southhampton, PA 18966
Age: 60
- -----------------------------------------------------------------------------------------------------------------
Donald E. Petersen Trustee Former Chairman of the Board and Chief $20,000/3/
222 East Brown, Suite 460 Executive Officer, Ford Motor Company
Birmingham, MI 48009
Age: 73
- -----------------------------------------------------------------------------------------------------------------
+ Thierry Vandeventer Vice Chairman Director, Capital Research and None/4/
3 Place des Bergues of the Board Management Company
1201 Geneva, Switzerland
Age: 64
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL COMPENSATION
(INCLUDING VOLUNTARILY
DEFERRED
COMPENSATION/1/) FROM TOTAL NUMBER
ALL FUNDS MANAGED BY OF FUND
CAPITAL RESEARCH AND BOARDS
MANAGEMENT COMPANY ON WHICH
OR ITS AFFILIATES/2/ FOR THE TRUSTEE
NAME, ADDRESS AND AGE YEAR ENDED MARCH 31, 1999 SERVES/2/
- --------------------------------------------------------------------------
<S> <C> <C>
Elisabeth Allison $ 39,300 3
ANZI, Ltd.
1770 Massachusetts Ave.
Cambridge, MA 02140
Age: 53
- --------------------------------------------------------------------------
+ Mark E. Denning None/4/ 1
25 Bedford Street
London, England
Age: 42
- --------------------------------------------------------------------------
+ Gina H. Despres None/4/ 2
3000 K Street, N.W.
Washington, DC 20007
Age: 58
- --------------------------------------------------------------------------
Robert A. Fox $114,700/3/ 7
P.O. Box 457
Livingston, CA 95334
Age: 62
- --------------------------------------------------------------------------
Alan Greenway $ 74,150 5
7413 Fairway Road
La Jolla, CA 92037
Age: 72
- --------------------------------------------------------------------------
Koichi Itoh $42,700/3/ 3
Autosplice Inc.
3-7-39 Minami-cho
Higashi-Kurume City
Tokyo, Japan 203-0031
Age: 59
- --------------------------------------------------------------------------
William H. Kling $76,950/3/ 6
45 East Seventh Street
St. Paul, MN 55101
Age: 57
- --------------------------------------------------------------------------
John G. McDonald $232,200/3/ 8
Graduate School of
Business
Stanford University
Stanford, CA 94305
Age: 62
- --------------------------------------------------------------------------
++ William I. Miller $40,200/3/ 3
500 Washington Street
Box 929
Columbus, IN 47202
Age: 43
- --------------------------------------------------------------------------
Kirk P. Pendleton $110,600/3/ 6
Cairnwood, Inc.
75 James Way
Southhampton, PA 18966
Age: 60
- --------------------------------------------------------------------------
Donald E. Petersen $73,800/3/ 5
222 East Brown, Suite 460
Birmingham, MI 48009
Age: 73
- --------------------------------------------------------------------------
+ Thierry Vandeventer None/4/ 2
3 Place des Bergues
1201 Geneva, Switzerland
Age: 64
- --------------------------------------------------------------------------
</TABLE>
EuroPacific Growth Fund - Page 8
<PAGE>
EuroPacific Growth Fund - Page 9
<PAGE>
+ "Interested persons" within the meaning of the 1940 Act on the basis of their
affiliation with the fund's Investment Adviser, Capital Research and
Management Company, or the parent company of the Investment Adviser, The
Capital Group Companies, Inc.
++ May be deemed an "interested person" of the fund due to membership on the
board of directors of the parent company of a registered broker-dealer.
1 Amounts may be deferred by eligible Trustees under a non-qualified deferred
compensation plan adopted by the fund in 1993. Deferred amounts accumulate at
an earnings rate determined by the total return of one or more funds in The
American Funds Group as designated by the Trustees.
2 Capital Research and Management Company manages The American Funds Group
consisting of 29 funds: AMCAP Fund, Inc., American Balanced Fund, Inc.,
American High-Income Municipal Bond Fund, Inc., American High-Income Trust,
American Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash
Management Trust of America, Capital Income Builder, Inc., Capital World
Growth and Income Fund, Inc., Capital World Bond Fund, Inc., EuroPacific
Growth Fund, Fundamental Investors, Inc., The Growth Fund of America, Inc.,
The Income Fund of America, Inc., Intermediate Bond Fund of America, The
Investment Company of America, Limited Term Tax-Exempt Bond Fund of America,
The New Economy Fund, New Perspective Fund, Inc., New World Fund, Inc.,
SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of America, Inc., The
Tax-Exempt Fund of California, The Tax-Exempt Fund of Maryland, The Tax-Exempt
Fund of Virginia, The Tax-Exempt Money Fund of America, The U. S. Treasury
Money Fund of America, U.S. Government Securities Fund and Washington Mutual
Investors Fund, Inc. Capital Research and Management Company also manages
American Variable Insurance Series and Anchor Pathway Fund, which serve as the
underlying investment vehicle for certain variable insurance contracts; and
Endowments, whose shareholders are limited to (i) any entity exempt from
taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended ("501(c)(3) organization"); (ii) any trust, the present or future
beneficiary of which is a 501(c)(3) organization, and (iii) any other entity
formed for the primary purpose of benefiting a 501(c)(3) organization. An
affiliate of Capital Research and Management Company, Capital International,
Inc., manages Emerging Markets Growth Fund, Inc.
3 Since the deferred compensation plan's adoption, the total amount of deferred
compensation accrued by the fund (plus earnings thereon) during the 1999
fiscal year for participating Trustees is as follows: Robert A. Fox
($183,915), Koichi Itoh ($63,532), William H. Kling ($102,938), John G.
McDonald ($111,321), William I. Miller ($63,326), Kirk P. Pendleton ($59,172)
and Donald E. Petersen ($23,176). Amounts deferred and accumulated earnings
thereon are not funded and are general unsecured liabilities of the fund until
paid to the Trustees.
4 Mark E. Denning, Gina H. Despres and Thierry Vandeventer are affiliated with
the Investment Adviser and, accordingly, receive no compensation from the
fund.
EuroPacific Growth Fund - Page 10
<PAGE>
OFFICERS
<TABLE>
<CAPTION>
POSITION(S) PRINCIPAL OCCUPATION(S) DURING
NAME AND ADDRESS AGE WITH REGISTRANT PAST 5 YEARS
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Stephen E. Bepler 57 Executive Vice Senior Vice President, Capital
630 Fifth Avenue President Research Company*
New York, NY 10111
- -------------------------------------------------------------------------------
Robert W. Lovelace 36 Senior Vice Executive Vice President and
11100 Santa Monica President Director, Capital Research
Blvd. Company*
Los Angeles, CA 90025
- -------------------------------------------------------------------------------
Janet A. McKinley 45 Senior Vice Director, Capital Research and
630 Fifth Avenue President Management Company. Senior Vice
New York, NY 10111 President, Capital Research
Company*
- -------------------------------------------------------------------------------
Alwyn Heong 39 Vice President Vice President, Capital Research
630 Fifth Avenue Company*
New York, NY 10111
- -------------------------------------------------------------------------------
Hiromi Ishikawa 38 Vice President Vice President, Capital Research
Yamato Seimei Building Company
1-1-7 Uchisaiwaicho,
Chiyodaku
Tokyo 100, Japan
- -------------------------------------------------------------------------------
Vincent P. Corti 43 Secretary Vice President - Fund Business
333 South Hope Street Management Group, Capital
Los Angeles, CA 90071 Research
and Management Company
- -------------------------------------------------------------------------------
R. Marcia Gould 45 Treasurer Vice President - Fund Business
135 South State Management Group, Capital
College Blvd. Research
Brea, CA 92821 and Management Company
- -------------------------------------------------------------------------------
Dayna G. Yamabe 32 Assistant Assistant Vice President - Fund
135 South State Treasurer Business Management Group,
College Blvd. Capital
Brea, CA 92821 Research and Management Company
- -------------------------------------------------------------------------------
</TABLE>
* Company affiliated with Capital Research and Management Company.
No compensation is paid by the fund to any officer or Trustee who is a director,
officer or employee of the Investment Adviser or affiliated companies.
The fund pays annual fees of $18,000 to Trustees who are not affiliated with the
Investment Adviser, plus $1,000 for each Board of Trustees meeting attended,
plus $500 for each meeting attended as a member of a committee of the Board of
Trustees. No pension or retirement benefits are accrued as part of fund
expenses. The Trustees may elect, on a voluntary basis, to defer all or a
portion of their fees through a deferred compensation plan in effect for the
fund. The fund also reimburses certain expenses of the Trustees who are not
affiliated with the Investment Adviser. As of February 15, 2000 the officers and
Trustees of the fund and their families, as a group, owned beneficially or of
record less than 1% of the outstanding shares of the fund.
EuroPacific Growth Fund - Page 11
<PAGE>
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains research
facilities in the U.S. and abroad (Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Hong Kong, Singapore and Tokyo), with a staff
of professionals, many of whom have a number of years of investment experience.
The Investment Adviser is located at 333 South Hope Street, Los Angeles, CA
90071, and at 135 South State College Boulevard, Brea, CA 92821. The Investment
Adviser's research professionals travel several million miles a year, making
more than 5,000 research visits in more than 50 countries around the world. The
Investment Adviser believes that it is able to attract and retain quality
personnel. The Investment Adviser is a wholly owned subsidiary of The Capital
Group Companies, Inc.
The Investment Adviser is responsible for managing more than $300 billion of
stocks, bonds and money market instruments and serves over 11 million
shareholder accounts of all types throughout the world. These investors include
privately owned businesses and large corporations as well as schools, colleges,
foundations and other non-profit and tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and Service
Agreement (the "Agreement") between the fund and the Investment Adviser will
continue in effect until December 31, 2000, unless sooner terminated, and may be
renewed from year to year thereafter, provided that any such renewal has been
specifically approved at least annually by (i) the Board of Trustees, or by the
vote of a majority (as defined in the 1940 Act) of the outstanding voting
securities of the fund, and (ii) the vote of a majority of Trustees who are not
parties to the Agreement or interested persons (as defined in the 1940 Act) of
any such party, cast in person at a meeting called for the purpose of voting on
such approval. The Agreement provides that the Investment Adviser has no
liability to the fund for its acts or omissions in the performance of its
obligations to the fund not involving willful misconduct, bad faith, gross
negligence or reckless disregard of its obligations under the Agreement. The
Agreement also provides that either party has the right to terminate it, without
penalty, upon 60 days' written notice to the other party, and that the Agreement
automatically terminates in the event of its assignment (as defined in the 1940
Act).
The Investment Adviser, in addition to providing investment advisory services,
furnishes the services and pays the compensation and travel expenses of persons
to perform the executive, administrative, clerical and bookkeeping functions of
the fund, and provides suitable office space, necessary small office equipment
and utilities, general purpose accounting forms, supplies, and postage used at
the offices of the fund. The fund pays all expenses not assumed by the
Investment Adviser, including, but not limited to, custodian, stock transfer and
dividend disbursing fees and expenses; costs of the designing, printing and
mailing of reports, prospectuses, proxy statements, and notices to its
shareholders; taxes; expenses of the issuance and redemption of shares of the
fund (including stock certificates, registration and qualification fees and
expenses); expenses pursuant to the fund's Plans of Distribution (described
below); legal and auditing expenses; compensation, fees, and expenses paid to
directors unaffiliated with the Investment Adviser; association dues; costs of
stationery and forms prepared exclusively for the fund; and costs of assembling
and storing shareholder account data.
As compensation for its services, the Investment Adviser receives a monthly fee
which is accrued daily, calculated at the annual rate of 0.69% on the first $500
million of the fund's average net assets, 0.59% of such assets in excess of $500
million but not exceeding $1.0
EuroPacific Growth Fund - Page 12
<PAGE>
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
billion, 0.44% of such assets in excess of $17 billion but not exceeding
$21 billion, 0.43% of such net assets in excess of $21 billion but not
exceeding $27 billion, 0.425% of such net assets in excess of $27 billion
but not exceeding $34 billion, 0.42% of such net assets in excess of $34
billion but not exceeding $44 billion, and 0.415% of such net assets in
excess of $44 billion.
The Investment Adviser has agreed that in the event the expenses of the fund
(with the exclusion of interest, taxes, brokerage costs, extraordinary expenses
such as litigation and acquisitions or other expenses excludable under
applicable state securities laws or regulations) for any fiscal year ending on a
date on which the Agreement is in effect, exceed the expense limitations, if
any, applicable to the fund pursuant to state securities laws or any regulations
thereunder, it will reduce its fee by the extent of such excess and, if required
pursuant to any such laws or any regulations thereunder, will reimburse the fund
in the amount of such excess.
For the fiscal years ended March 31, 1999, 1999, and 1998, the Investment
Adviser received advisory fees of $96,690,000, $90,507,000, and $70,142,000,
respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the "Principal
Underwriter") is the principal underwriter of the fund's shares. The Principal
Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92821, 3500 Wiseman Boulevard, San
Antonio, TX 78251, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. The fund has adopted Plans of
Distribution (the Plans), pursuant to rule 12b-1 under the 1940 Act. The
Principal Underwriter receives amounts payable pursuant to the Plans (see below)
and commissions consisting of that portion of the sales charge remaining after
the discounts which it allows to investment dealers. Commissions retained by the
Principal Underwriter on sales of Class A shares during the 1999 fiscal year
amounted to $6,399,000 after allowance of $31,625,000 to dealers.
During the fiscal years ended 1999 and 1998 the Principal Underwriter retained
$10,044,000 and $10,806,000, respectively on sales of Class A shares after an
allowance of $50,962,000 and $55,552,000 to dealers, respectively.
As required by rule 12b-1 and the 1940 Act, the Plans (together with the
Principal Underwriting Agreement) have been approved by the full Board of
Trustees and separately by a majority of the trustees who are not "interested
persons" of the fund and who have no direct or indirect financial interest in
the operation of the Plans or the Principal Underwriting Agreement. The officers
and trustees who are "interested persons" of the fund may be considered to have
a direct or indirect financial interest in the operation of the Plans due to
present or past affiliations with the Investment Adviser and related companies.
Potential benefits of the Plans to the fund include shareholder services,
savings to the fund in transfer agency costs, savings to the fund in advisory
fees and other expenses, benefits to the investment process from growth or
stability of assets and maintenance of a financially healthy management
organization. The selection and nomination of trustees who are not "interested
persons" of the fund are committed to the discretion of the trustees who are not
"interested persons" during the existence of the Plans. Plan expenses are
reviewed quarterly and the Plans must be renewed annually by the Board of
Trustees.
Under the Plans the fund may expend up to 0.25% of its net assets annually for
Class A shares and up to 1.00% of its net assets annually for Class B shares to
finance any activity which is
EuroPacific Growth Fund - Page 13
<PAGE>
primarily intended to result in the sale of fund shares, provided the fund's
Board of Trustees has approved the category of expenses for which payment is
being made. For Class A shares these include up to 0.25% in service fees for
qualified dealers and dealer commissions and wholesaler compensation on sales of
shares exceeding $1 million purchased without a sales charge (including
purchases by employer-sponsored defined contribution-type retirement plans
investing $1 million or more or with 100 or more eligible employees, rollover
IRA accounts as described in "Individual Retirement Account (IRA) Rollovers"
below, and retirement plans, endowments or foundations with $50 million or more
in assets). For Class B shares these include 0.25% in service fees for qualified
dealers and 0.75% in payments to the Principal Underwriter for financing
commissions paid to qualified dealers selling Class B shares.
Commissions on sales of Class A shares exceeding $1 million (including purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code, including any
"401(k)" plan with 100 or more eligible employees) in excess of the Class A Plan
limitation not reimbursed during the most recent fiscal quarter are recoverable
for five quarters, provided that such commissions do not exceed the annual
expense limit. After five quarters, these commissions are not recoverable.
During the 1999 fiscal year, the fund paid or accrued $48,882,000 for
compensation to dealers or the Principal Underwriter under the Plan for Class A
shares. As of March 31, 1999, accrued and unpaid expenses were $3,794,000.
OTHER COMPENSATION TO DEALERS - The Principal Underwriter, at its expense (from
a designated percentage of its income), currently provides additional
compensation to dealers. Currently these payments are limited to the top 100
dealers who have sold shares of the fund or other funds in The American Funds
Group. These payments will be based principally on a pro rata share of a
qualifying dealer's sales. The Principal Underwriter will, on an annual basis,
determine the advisability of continuing these payments.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS - The fund intends to follow the practice of distributing
substantially all of its investment company taxable income which includes any
excess of net realized short-term gains over net realized long-term capital
losses. Additional distributions may be made, if necessary. The fund also
intends to follow the practice of distributing the entire excess of net realized
long-term capital gains over net realized short-term capital losses. However,
the fund may retain all or part of such gain for reinvestment, after paying the
related federal taxes for which shareholders may then be able to claim a credit
against their federal tax liability. If the fund does not distribute the amount
of capital gain and/or net investment income required to be distributed by an
excise tax provision of the Code, the fund may be subject to that excise tax. In
certain circumstances, the fund may determine that it is in the interest of
shareholders to distribute less than the required amount. In this case, the fund
will pay any income or excise taxes due.
Dividends will be reinvested in shares of the fund unless shareholders indicate
in writing that they wish to receive them in cash or in shares of other American
Funds, as provided in the prospectus.
TAXES - The fund has elected to be treated as a regulated investment company
under Subchapter M of the Code. A regulated investment company qualifying under
Subchapter M of the Code is required to distribute to its shareholders at least
90% of its investment company taxable income (including the excess of net
short-term capital gain over net long-term capital
EuroPacific Growth Fund - Page 14
<PAGE>
losses) and generally is not subject to federal income tax to the extent that it
distributes annually 100% of its investment company taxable income and net
realized capital gains in the manner required under the Code. The fund intends
to distribute annually all of its investment company taxable income and net
realized capital gains and therefore does not expect to pay federal income tax,
although in certain circumstances the fund may determine that it is in the
interest of shareholders to distribute less than that amount.
Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gain (both long-term and short-term)
for the one-year period ending on October 31 (as though the one-year period
ending on October 31 were the regulated investment company's taxable year), and
(iii) the sum of any untaxed, undistributed net investment income and net
capital gains of the regulated investment company for prior periods. The term
"distributed amount" generally means the sum of (i) amounts actually distributed
by the fund from its current year's ordinary income and capital gain net income
and (ii) any amount on which the fund pays income tax during the periods
described above. The fund intends to distribute net investment income and net
capital gains so as to minimize or avoid the excise tax liability.
Investment company taxable income generally includes dividends, interest, net
short-term capital gains in excess of net long-term capital losses, and certain
foreign currency gains, if any, less expenses and certain foreign currency
losses, if any. Net capital gains for a fiscal year are computed by taking into
account any capital loss carry-forward of the fund.
If any net long-term capital gains in excess of net short-term capital losses
are retained by the fund for reinvestment, requiring federal income taxes to be
paid thereon by the fund, the fund intends to elect to treat such capital gains
as having been distributed to shareholders. As a result, each shareholder will
report such capital gains as long-term capital gains taxable to individual
shareholders at a maximum 20% capital gains rate, will be able to claim a pro
rata share of federal income taxes paid by the fund on such gains as a credit
against personal federal income tax liability, and will be entitled to increase
the adjusted tax basis on fund shares by the difference between a pro rata share
of the retained gains and their related tax credit.
Distributions of investment company taxable income are taxable to shareholders
as ordinary income.
Distributions of the excess of net long-term capital gains over net short-term
capital losses which the fund properly designates as "capital gain dividends"
generally will be taxable to individual shareholders at a maximum 20% capital
gains rate, regardless of the length of time the shares of the fund have been
held by such shareholders. Such distributions are not eligible for the
dividends-received deduction. Any loss realized upon the redemption of shares
held at the time of redemption for six months or less from the date of their
purchase will be treated as a long-term capital loss to the extent of any
amounts treated as distributions of long-term capital gain during such six-month
period.
Distributions of investment company taxable income and net realized capital
gains to individual shareholders will be taxable as described above, whether
received in shares or in cash. Shareholders electing to receive distributions in
the form of additional shares will have a cost
EuroPacific Growth Fund - Page 15
<PAGE>
basis for federal income tax purposes in each share so received equal to the net
asset value of a share on the reinvestment date.
All distributions of investment company taxable income and net realized capital
gain, whether received in shares or in cash, must be reported by each
shareholder subject to tax on his or her federal income tax return. Dividends
and capital gains distributions declared in October, November or December and
payable to shareholders of record in such a month will be deemed to have been
received by shareholders on December 31 if paid during January of the following
year. Redemptions of shares, including exchanges for shares of another American
Fund, may result in tax consequences (gain or loss) to the shareholder and must
also be reported on the shareholder's federal income tax return.
Dividends from domestic corporations are expected to comprise some portion of
the fund's gross income. To the extent that such dividends constitute any of the
fund's gross income, a portion of the income distributions of the fund will be
eligible for the deduction for dividends received by corporations. Shareholders
will be informed of the portion of dividends which so qualify. The
dividends-received deduction is reduced to the extent that either the fund
shares, or the underlying shares of stock held by the fund, with respect to
which dividends are received, are treated as debt-financed under federal income
tax law and is eliminated if the shares are deemed to have been held by the
shareholder or the fund, as the case may be, for less than 46 days.
Distributions by the fund result in a reduction in the net asset value of the
fund's shares. Should a distribution reduce the net asset value below a
shareholder's cost basis, such distribution would nevertheless be taxable to the
shareholder as ordinary income or capital gain as described above, even though,
from an investment standpoint, it may constitute a partial return of investment
capital. For this reason, investors should consider the tax implications of
buying shares just prior to a distribution. The price of shares purchased at
that time includes the amount of the forthcoming distribution. Those purchasing
just prior to a distribution will then receive a partial return of investment
capital upon the distribution, which will nevertheless be taxable to them.
A portion of the difference between the issue price of zero coupon securities
and their face value ("original issue discount") is considered to be income to
the fund each year, even though the fund will not receive cash interest payments
from these securities. This original issue discount (imputed income) will
comprise a part of the investment company taxable income of the fund which must
be distributed to shareholders in order to maintain the qualification of the
fund as a regulated investment company and to avoid federal income tax at the
level of the fund. Shareholders will be subject to income tax on such original
issue discount, whether or not they elect to receive their distributions in
cash.
The fund will be required to report to the IRS all distributions of investment
company taxable income and capital gains as well as gross proceeds from the
redemption or exchange of fund shares, except in the case of certain exempt
shareholders. Under the backup withholding provisions of Section 3406 of the
Code, distributions of investment company taxable income and capital gains and
proceeds from the redemption or exchange of the shares of a regulated investment
company may be subject to withholding of federal income tax at the rate of 31%
in the case of non-exempt U.S. shareholders who fail to furnish the investment
company with their taxpayer identification numbers and with required
certifications regarding their status under the federal income tax law.
Withholding may also be required if the fund is notified by the IRS or a broker
that the taxpayer identification number furnished by the shareholder is
incorrect or that the
EuroPacific Growth Fund - Page 16
<PAGE>
shareholder has previously failed to report interest or dividend income. If the
withholding provisions are applicable, any such distributions and proceeds,
whether taken in cash or reinvested in additional shares, will be reduced by the
amounts required to be withheld.
Shareholders of the fund may be subject to state and local taxes on
distributions received from the fund and on redemptions of the fund's shares.
Each distribution is accompanied by a brief explanation of the form and
character of the distribution. In January of each year fund shareholders will
receive a statement of the federal income tax status of all distributions.
Dividend and interest income received by the fund from sources outside the U.S.
may be subject to withholding and other taxes imposed by such foreign
jurisdictions. Tax conventions between certain countries and the U.S. may reduce
or eliminate these foreign taxes, however. Most foreign countries do not impose
taxes on capital gains in respect of investments by foreign investors.
The fund may make the election permitted under Section 853 of the Code so that
shareholders may (subject to limitations) be able to claim a credit or deduction
on their federal income tax returns for, and will be required to treat as part
of the amounts distributed to them, their pro rata portion of qualified taxes
paid by the Fund to foreign countries (which taxes relate primarily to
investment income). The fund may make an election under Section 853 of the Code,
provided that more than 50% of the value of the total assets of the fund at the
close of the taxable year consists of securities in foreign corporations. The
foreign tax credit available to shareholders is subject to certain limitations
imposed by the Code.
Under the Code, gains or losses attributable to fluctuations in exchange rates
which occur between the time the fund accrues receivables or liabilities
denominated in a foreign currency and the time the fund actually collects such
receivables, or pays such liabilities, generally are treated as ordinary income
or ordinary loss. Similarly, on disposition of debt securities denominated in a
foreign currency and on disposition of certain futures contracts, forward
contracts and options, gains or losses attributable to fluctuations in the value
of foreign currency between the date of acquisition of the security or contract
and the date of disposition are also treated as ordinary gain or loss. These
gains or losses, referred to under the Code as "Section 988" gains or losses,
may increase or decrease the amount of the fund's investment company taxable
income to be distributed to its shareholders as ordinary income.
If the fund invests in stock of certain passive foreign investment companies,
the fund may be subject to U.S. federal income taxation on a portion of any
"excess distribution" with respect to, or gain from the disposition of, such
stock. The tax would be determined by allocating such distribution or gain
ratably to each day of the fund's holding period for the stock. The distribution
or gain so allocated to any taxable year of the fund, other than the taxable
year of the excess distribution or disposition, would be taxed to the fund at
the highest ordinary income rate in effect for such year, and the tax would be
further increased by an interest charge to reflect the value of the tax deferral
deemed to have resulted from the ownership of the foreign company's stock. Any
amount of distribution or gain allocated to the taxable year of the distribution
or disposition would be included in the fund's investment company taxable income
and, accordingly, would not be taxable to the fund to the extent distributed by
the fund as a dividend to its shareholders.
EuroPacific Growth Fund - Page 17
<PAGE>
To avoid such tax and interest, the fund intends to elect to treat these
securities as sold on the last day of its fiscal year and recognize any gains
for tax purposes at that time. Under this election, deductions for losses are
allowable only to the extent of any prior recognized gains, and both gains and
losses will be treated as ordinary income or loss. The fund will be required to
distribute any resulting income, even though it has not sold the security and
received cash to pay such distributions.
The foregoing discussion of U.S. federal income tax law relates solely to the
application of that law to U.S. persons, i.e., U.S. citizens and residents and
U.S. corporations, partnerships, trusts and estates. Each shareholder who is not
a U.S. person should consider the U.S. and foreign tax consequences of ownership
of shares of the fund, including the possibility that such a shareholder may be
subject to a U.S. withholding tax at a rate of 30% (or at a lower rate under an
applicable income tax treaty) on dividend income received by him or her.
Shareholders should consult their tax advisers about the application of the
provisions of tax law described in this statement of additional information in
light of their particular tax situations.
EuroPacific Growth Fund - Page 18
<PAGE>
PURCHASE OF SHARES
<TABLE>
<CAPTION>
METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
- -------------------------------------------------------------------------------
<S> <C> <C>
See "Purchase $50 minimum (except where a
Minimums" for initial lower minimum is noted under
investment minimums. "Purchase Minimums").
- -------------------------------------------------------------------------------
By contacting Visit any investment Mail directly to your
your investment dealer dealer who is investment dealer's address
registered in the printed on your account
state where the statement.
purchase is made and
who has a sales
agreement with
American Funds
Distributors.
- -------------------------------------------------------------------------------
By mail Make your check Fill out the account additions
payable to the fund form at the bottom of a recent
and mail to the account statement, make your
address indicated on check payable to the fund,
the account write your account number on
application. Please your check, and mail the check
indicate an investment and form in the envelope
dealer on the account provided with your account
application. statement.
- -------------------------------------------------------------------------------
By telephone Please contact your Complete the "Investments by
investment dealer to Phone" section on the account
open account, then application or American
follow the procedures FundsLink Authorization Form.
for additional Once you establish the
investments. privilege, you, your financial
advisor or any person with your
account information can call
American FundsLine(R) and make
investments by telephone
(subject to conditions noted in
"Shareholder Account Services
and Privileges - Telephone and
Computer Purchases, Redemptions
and Exchanges" below).
- -------------------------------------------------------------------------------
By computer Please contact your Complete the American FundsLink
investment dealer to Authorization Form. Once you
open account, then established the privilege, you,
follow the procedures your financial advisor or any
for additional person with your account
investments. information may access American
FundsLine OnLine(R) on the
Internet and make investments
by computer (subject to
conditions noted in
"Shareholder Account Services
and Privileges - Telephone and
Computer Purchases, Redemptions
and Exchanges" below).
- -------------------------------------------------------------------------------
By wire Call 800/421-0180 to Your bank should wire your
obtain your account additional investments in the
number(s), if same manner as described under
necessary. Please "Initial Investment."
indicate an investment
dealer on the account.
Instruct your bank to
wire funds to:
Wells Fargo Bank
155 Fifth Street,
Sixth Floor
San Francisco, CA
94106
(ABA#121000248)
For credit to the
account of:
American Funds Service
Company a/c#
4600-076178
(fund name)
(your fund acct. no.)
- -------------------------------------------------------------------------------
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT ANY
PURCHASE ORDER.
- -------------------------------------------------------------------------------
</TABLE>
PURCHASE MINIMUMS - The minimum initial investment for all funds in The American
Funds Group, except the money market funds and the state tax-exempt funds, is
$250. The minimum initial investment for the money market funds (The Cash
Management Trust of America, The Tax--
EuroPacific Growth Fund - Page 19
<PAGE>
Exempt Money Fund of America, and The U.S. Treasury Money Fund of America) and
the state tax-exempt funds (The Tax-Exempt Fund of California, The Tax-Exempt
Fund of Maryland, and The Tax-Exempt Fund of Virginia) is $1,000. Purchase
minimums are reduced to $50 for purchases through "Automatic Investment Plans"
(except for the money market funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived for shareholders of
other funds in The American Funds Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS
RETIREMENT PLAN INVESTMENTS. The minimum is $50 for additional investments
(except as noted above).</r.
PURCHASE MAXIMUM FOR CLASS B SHARES - The maximum purchase order for Class B
shares for all American Funds is $100,000. For investments above $100,000 Class
A shares are generally a less expensive option over time due to sales charge
reductions or waivers.
FUND NUMBERS - Here are the fund numbers for use with our automated phone line,
American FundsLine/(R)/ (see description below):
<TABLE>
<CAPTION>
FUND FUND
NUMBER NUMBER
FUND CLASS A CLASS B
---- ------- -------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund/(R)/ . . . . . . . . . . . . . . . . . . . . 02 202
American Balanced Fund/(R)/ . . . . . . . . . . . . . . 11 211
American Mutual Fund/(R)/ . . . . . . . . . . . . . . . 03 203
Capital Income Builder/(R)/ . . . . . . . . . . . . . . 12 212
Capital World Growth and Income Fund/SM/ . . . . . . . 33 233
EuroPacific Growth Fund/(R)/ . . . . . . . . . . . . . 16 216
Fundamental Investors/SM/ . . . . . . . . . . . . . . . 10 210
The Growth Fund of America/(R)/ . . . . . . . . . . . . 05 205
The Income Fund of America/(R)/ . . . . . . . . . . . . 06 206
The Investment Company of America/(R)/ . . . . . . . . 04 204
The New Economy Fund/(R)/ . . . . . . . . . . . . . . . 14 214
New Perspective Fund/(R)/ . . . . . . . . . . . . . . . 07 207
New World Fund/SM/ . . . . . . . . . . . . . . . . . . 36 236
SMALLCAP World Fund/(R)/ . . . . . . . . . . . . . . . 35 235
Washington Mutual Investors Fund/SM/ . . . . . . . . . 01 201
BOND FUNDS
American High-Income Municipal Bond Fund/(R)/ . . . . . 40 240
American High-Income Trust/SM/ . . . . . . . . . . . . 21 221
The Bond Fund of America/SM/ . . . . . . . . . . . . . 08 208
Capital World Bond Fund/(R)/ . . . . . . . . . . . . . 31 231
Intermediate Bond Fund of America/SM/ . . . . . . . . . 23 223
Limited Term Tax-Exempt Bond Fund of America/SM/ . . . 43 243
The Tax-Exempt Bond Fund of America/(R)/ . . . . . . . 19 219
The Tax-Exempt Fund of California/(R)/* . . . . . . . . 20 220
The Tax-Exempt Fund of Maryland/(R)/* . . . . . . . . . 24 224
The Tax-Exempt Fund of Virginia/(R)/* . . . . . . . . . 25 225
U.S. Government Securities Fund/SM/ . . . . . . . . . . 22 222
MONEY MARKET FUNDS
The Cash Management Trust of America/(R)/ . . . . . . . 09 209
The Tax-Exempt Money Fund of America/SM/ . . . . . . . 39 N/A
The U.S. Treasury Money Fund of America/SM/ . . . . . . 49 N/A
___________
*Available only in certain states.
</TABLE>
EuroPacific Growth Fund - Page 20
<PAGE>
SALES CHARGES
CLASS A SALES CHARGES - The sales charges you pay when purchasing Class A shares
of stock, stock/bond, and bond funds of The American Funds Group are set forth
below. The money market funds of The American Funds Group are offered at net
asset value. (See "Fund Numbers" for a listing of the funds.)
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE
AT THE OFFERING PRICE NET AMOUNT OFFERING OFFERING
-INVESTED- PRICE PRICE
- ------------------------------------------ -------- ----- -----
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $25,000 . . . . . . . . . 6.10% 5.75% 5.00%
$25,000 but less than $50,000 . . . 5.26 5.00 4.25
$50,000 but less than $100,000. . 4.71 4.50 3.75
BOND FUNDS
Less than $100,000 . . . . . . . . 3.90 3.75 3.00
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000 . 3.63 3.50 2.75
$250,000 but less than $500,000 . 2.56 2.50 2.00
$500,000 but less than $750,000 . 2.04 2.00 1.60
$750,000 but less than $1 million 1.52 1.50 1.20
$1 million or more . . . . . . . . . . none none (see below)
- -----------------------------------------------------------------------------
</TABLE>
CLASS A PURCHASES NOT SUBJECT TO SALES CHARGES - Investments of $1 million or
more are sold with no initial sales charge. HOWEVER, A 1% CONTINGENT DEFERRED
SALES CHARGE (CDSC) MAY BE IMPOSED IF REDEMPTIONS ARE MADE WITHIN ONE YEAR OF
PURCHASE. Employer-sponsored defined contribution-type plans investing $1
million or more, or with 100 or more eligible employees, and Individual
Retirement Account rollovers from retirement plan assets invested in the
American Funds (see "Individual Retirement Account (IRA) Rollovers" below) may
invest with no sales charge and are not subject to a contingent deferred sales
charge. Investments made by
EuroPacific Growth Fund - Page 21
<PAGE>
investors in certain qualified fee-based programs, and retirement plans,
endowments or foundations with $50 million or more in assets may also be made
with no sales charge and are not subject to a CDSC. A dealer concession of up
to 1% may be paid by the fund under its Plan of Distribution on investments made
with no initial sales charge.
In addition, Class A shares of the stock, stock/bond and bond funds may be sold
at net asset value to:
(1) current or retired directors, trustees, officers and advisory board members
of, and certain lawyers who provide services to, the funds managed by Capital
Research and Management Company, current or retired employees of Washington
Management Corporation, current or retired employees and partners of The Capital
Group Companies, Inc. and its affiliated companies, certain family members and
employees of the above persons, and trusts or plans primarily for such persons;
(2) current registered representatives, retired registered representatives with
respect to accounts established while active, or full-time employees (and their
spouses, parents, and children) of dealers who have sales agreements with the
Principal Underwriter (or who clear transactions through such dealers) and plans
for such persons or the dealers;
(3) companies exchanging securities with the fund through a merger, acquisition
or exchange offer;
(4) trustees or other fiduciaries purchasing shares for certain retirement
plans of organizations with retirement plan assets of $50 million or more;
(5) insurance company separate accounts;
(6) accounts managed by subsidiaries of The Capital Group Companies, Inc.; and
(7) The Capital Group Companies, Inc., its affiliated companies and Washington
Management Corporation. Shares are offered at net asset value to these persons
and organizations due to anticipated economies in sales effort and expense.
CONTINGENT DEFERRED SALES CHARGE ON CLASS A SHARES - A contingent deferred
sales charge of 1% applies to redemptions made from funds, other than the money
market funds, within 12 months following Class A share purchases of $1 million
or more made without an initial sales charge. The charge is 1% of the lesser of
the value of the shares redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares. Shares held the longest
are assumed to be redeemed first for purposes of calculating this CDSC. The CDSC
may be waived in certain circumstances. See "CDSC Waivers for Class A Shares"
below.
DEALER COMMISSIONS ON CLASS A SHARES - The following commissions (up to 1%) will
be paid to dealers who initiate and are responsible for purchases of $1 million
or more, for purchases by any employer-sponsored defined contribution plan
investing $1 million or more, or with 100 or more eligible employees, IRA
rollover accounts (as described in "Individual Retirement Account (IRA)
Rollovers" below), and for purchases made at net asset value by certain
retirement plans, endowments and foundations with collective assets of $50
million or more: 1.00% on amounts of $1 million to $4 million, 0.50% on amounts
over $4 million to $10 million, and 0.25% on amounts over $10 million.
EuroPacific Growth Fund - Page 22
<PAGE>
CLASS B SALES CHARGES - Class B shares are sold without any initial sales
charge. However, a CDSC may be applied to shares you sell within six years of
purchase, as shown in the table below:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES CHARGE
ON SHARES SOLD WITHIN YEAR AS A % OF SHARES BEING SOLD
------------------------------------------------------------------------------
<S> <C>
1 5.00%
2 4.00%
3 4.00%
4 3.00%
5 2.00%
6 1.00%
</TABLE>
There is no CDSC on appreciation in share value above the initial purchase price
or on shares acquired through reinvestment of dividends or capital gain
distributions. In addition, the CDSC may be waived in certain circumstances.
See "CDSC Waivers for Class B shares" below. The CDSC is based on the original
purchase cost or the current market value of the shares being sold, whichever is
less. In processing redemptions of Class B shares, shares that are not subject
to any CDSC will be redeemed first and then shares that you have owned the
longest during the six-year period. CLASS B SHARES ARE NOT AVAILABLE TO CERTAIN
RETIREMENT PLANS, INCLUDING GROUP RETIREMENT PLANS SUCH AS 401(K) PLANS,
EMPLOYER-SPONSORED 403(B) PLANS, AND MONEY PURCHASE PENSION AND PROFIT SHARING
PLANS.
Compensation equal to 4% of the amount invested is paid by the Principal
Underwriter to dealers who sell Class B shares.
CONVERSION OF CLASS B SHARES TO CLASS A SHARES - Class B shares automatically
convert to Class A shares in the month of the eight-year anniversary of the
purchase date. The conversion of Class B shares to Class A shares after eight
years is subject to the Internal Revenue Service's continued position that the
conversion of Class B shares is not subject to federal income tax. In the event
the Internal Revenue Service no longer takes this position, the automatic
conversion feature may be suspended, in which event no further conversions of
Class B shares would occur while such suspension remained in effect. At your
option, Class B shares may still be exchanged for Class A shares on the basis of
relative net asset value of the two classes, without the imposition of a sales
charge or fee; HOWEVER, SUCH AN EXCHANGE COULD CONSTITUTE A TAXABLE EVENT FOR
YOU, AND ABSENT SUCH AN EXCHANGE, CLASS B SHARES WOULD CONTINUE TO BE SUBJECT TO
HIGHER EXPENSES FOR LONGER THAN EIGHT YEARS.
SALES CHARGE REDUCTIONS AND WAIVERS
REDUCING YOUR CLASS A SALES CHARGE - You and your "immediate family" (your
spouse and your children under age 21) may combine investments to reduce your
costs. You must let your investment dealer or American Funds Service Company
(the "Transfer Agent") know if you qualify for a reduction in your sales charge
using one or any combination of the methods described below.
EuroPacific Growth Fund - Page 23
<PAGE>
STATEMENT OF INTENTION - You may enter into a non-binding commitment to
purchase shares of a fund(s) over a 13-month period and receive the same
sales charge as if all shares had been purchased at once. This includes
purchases made during the previous 90 days, but does not include
appreciation of your investment or reinvested distributions. The reduced
sales charges and offering prices set forth in the Prospectus apply to
purchases of $25,000 or more made within a 13-month period subject to the
following statement of intention (the "Statement"). The Statement is not a
binding obligation to purchase the indicated amount. When a shareholder
elects to use a Statement in order to qualify for a reduced sales charge,
shares equal to 5% of the dollar amount specified in the Statement will be
held in escrow in the shareholder's account out of the initial purchase (or
subsequent purchases, if necessary) by the Transfer Agent. All dividends
and any capital gain distributions on shares held in escrow will be
credited to the shareholder's account in shares (or paid in cash, if
requested). If the intended investment is not completed within the
specified 13-month period, the purchaser will remit to the Principal
Underwriter the difference between the sales charge actually paid and the
sales charge which would have been paid if the total of such purchases had
been made at a single time. If the difference is not paid by the close of
the period, the appropriate number of shares held in escrow will be
redeemed to pay such difference. If the proceeds from this redemption are
inadequate, the purchaser will be liable to the Principal Underwriter for
the balance still outstanding. The Statement may be revised upward at any
time during the 13-month period, and such a revision will be treated as a
new Statement, except that the 13-month period during which the purchase
must be made will remain unchanged. Existing holdings eligible for rights
of accumulation (see below), as well as purchases of Class B shares, and
any individual investments in American Legacy variable annuities and
variable life insurance policies (American Legacy, American Legacy II and
American Legacy III variable annuities, American Legacy Life, American
Legacy Variable Life, and American Legacy Estate Builder) may be credited
toward satisfying the Statement. During the Statement period reinvested
dividends and capital gain distributions, investments in money market
funds, and investments made under a right of reinstatement will not be
credited toward satisfying the Statement.
When the trustees of certain retirement plans purchase shares by payroll
deduction, the sales charge for the investments made during the 13-month
period will be handled as follows: The regular monthly payroll deduction
investment will be multiplied by 13 and then multiplied by 1.5. The current
value of existing American Funds investments (other than money market fund
investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period, and
any individual investments in American Legacy variable annuities and
variable life insurance policies are added to the figure determined above.
The sum is the Statement amount and applicable breakpoint level. On the
first investment and all other investments made pursuant to the Statement,
a sales charge will be assessed according to the sales charge breakpoint
thus determined. There will be no retroactive adjustments in sales charges
on investments made during the 13-month period.
Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms with their first purchase.
AGGREGATION - Sales charge discounts are available for certain aggregated
investments. Qualifying investments include those by you, your spouse and
your children under the age of 21, if all parties are purchasing shares for
their own accounts and/or:
EuroPacific Growth Fund - Page 24
<PAGE>
. employee benefit plan(s), such as an IRA, individual-type 403(b) plan,
or single-participant Keogh-type plan;
. business accounts solely controlled by these individuals (for example,
the individuals own the entire business);
. trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may
be aggregated with accounts of the person who is the primary
beneficiary of the trust.
Individual purchases by a trustee(s) or other fiduciary(ies) may also be
aggregated if the investments are:
. for a single trust estate or fiduciary account, including an employee
benefit plan other than those described above;
.
made for two or more employee benefit plans of a single employer or of
affiliated employers as defined in the 1940 Act, again excluding
employee benefit plans described above; or
. for a diversified common trust fund or other diversified pooled
account not specifically formed for the purpose of accumulating fund
shares.
Purchases made for nominee or street name accounts (securities held in the
name of an investment dealer or another nominee such as a bank trust
department instead of the customer) may not be aggregated with those made
for other accounts and may not be aggregated with other nominee or street
name accounts unless otherwise qualified as described above.
CONCURRENT PURCHASES - You may combine purchases of Class A and/or B shares
of two or more funds in The American Funds Group, as well as individual
holdings in American Legacy variable annuities and variable life insurance
policies. Direct purchases of the money market funds are excluded. Shares
of money market funds purchased through an exchange, reinvestment or
cross-reinvestment from a fund having a sales charge do qualify.
RIGHTS OF ACCUMULATION - You may take into account the current value of
your existing Class A and B holdings in The American Funds Group, as well
as your holdings in Endowments (shares of which may be owned only by
tax-exempt organizations), to determine your sales charge on investments in
accounts eligible to be aggregated, or when making a gift to an individual
or charity. When determining your sales charge, you may also take into
account the value of your individual holdings, as of the end of the week
prior to your investment, in various American Legacy variable annuit
CDSC WAIVERS FOR CLASS A SHARES - Any CDSC on Class A shares may be waived in
the following cases:
(1) Exchanges (except if shares acquired by exchange are then redeemed within
12 months of the initial purchase).
EuroPacific Growth Fund - Page 25
<PAGE>
(2) Distributions from 403(b) plans or IRAs due to death, post-purchase
disability or attainment of age 59-1/2.
(3) Tax-free returns of excess contributions to IRAs.
(4) Redemptions through systematic withdrawal plans (see "Automatic
Withdrawals" below), not exceeding 12% of the net asset value of the account
each year.
CDSC WAIVERS FOR CLASS B SHARES - Any CDSC on Class B shares may be waived in
the following cases:
(1) Systematic withdrawal plans (SWPs) - investors who set up a SWP (see
"Automatic Withdrawals" below) may withdraw up to 12% of the net asset value of
their account each year without incurring any CDSC. Shares not subject to a
CDSC (such as shares representing reinvestment of distributions) will be
redeemed first and will count toward the 12% limitation. If there are
insufficient shares not subject to a CDSC, shares subject to the lowest CDSC
will be redeemed next until the 12% limit is reached.
The 12% fee from CDSC limit is calculated on a pro rata basis at the time the
first payment is made and is recalculated thereafter on a pro rata basis at the
time of each SWP payment. Shareholders who establish a SWP should be aware that
the amount of that payment not subject to a CDSC may vary over time depending on
fluctuations in net asset value of their account. This privilege may be revised
or terminated at any time.
(2) Required minimum distributions taken from retirement accounts upon the
attainment of age 70-1/2.
(3) Distributions due to death or post-purchase disability of a shareholder. In
the case of joint tenant accounts, if one joint tenant dies, the surviving joint
tenant(s), at the time they notify the Transfer Agent of the decedent's death
and remove his/her name from the account, may redeem shares from the account
without incurring a CDSC. Redemptions subsequent to the notification to the
Transfer Agent of the death of one of the joint owners will be subject to a
CDSC.
INDIVIDUAL RETIREMENT ACCOUNT (IRA) ROLLOVERS
Assets from an employer-sponsored retirement plan (plan assets) may be invested
in any class of shares of the American Funds (except as described below) through
an IRA rollover plan. All such rollover investments will be subject to the terms
and conditions for Class A and B shares contained in the fund's current
prospectus and statement of additional information. In the case of an IRA
rollover involving plan assets from a plan that offered the American Funds, the
assets may only be invested in Class A shares of the American Funds. Such
investments will be at net asset value and will not be subject to a contingent
deferred sales charge. Dealers who initiate and are responsible for such
investments will be compensated pursuant to the schedule applicable to
investments of $1 million or more (see "Dealer Commissions on Class A Shares"
above).
PRICE OF SHARES
Shares are purchased at the offering price next determined after the purchase
order is received and accepted by the fund or the Transfer Agent; this offering
price is effective for orders received
EuroPacific Growth Fund - Page 26
<PAGE>
prior to the time of determination of the net asset value and, in the case of
orders placed with dealers, accepted by the Principal Underwriter prior to its
close of business. In the case of orders sent directly to the fund or the
Transfer Agent, an investment dealer MUST be indicated. The dealer is
responsible for promptly transmitting purchase orders to the Principal
Underwriter. Orders received by the investment dealer, the Transfer Agent, or
the fund after the time of the determination of the net asset value will be
entered at the next calculated offering price. Prices which appear in the
newspaper do not always indicate prices at which you will be purchasing and
redeeming shares of the fund, since such prices generally reflect the previous
day's closing price whereas purchases and redemptions are made at the next
calculated price.
The price you pay for shares, the offering price, is based on the net asset
value per share which is calculated once daily as of approximately 4:00 p.m. New
York time, which is the normal close of trading on the New York Stock Exchange
each day the Exchange is open. If, for example, the Exchange closes at 1:00
p.m., the fund's share price would still be determined as of 4:00 p.m. New York
time. The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas Day.
All portfolio securities of funds managed by Capital Research and Management
Company (other than money market funds) are valued, and the net asset value per
share is determined as follows:
1. 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.
Assets or liabilities initially expressed in terms of non-U.S. currencies are
translated prior to the next determination of the net asset value of the fund's
shares into U.S. dollars at the prevailing market rates.
Securities and assets for which representative market quotations are not readily
available are valued at fair value as determined in good faith under policies
approved by the fund's Board. The fair value of all other assets is added to the
value of securities to arrive at the total assets;
2. Liabilities, including accruals of taxes and other expense items, are
deducted from total assets; and
3. Net assets so obtained are then divided by the total number of shares
outstanding, and the result, rounded to the nearer cent, is the net asset value
per share
EuroPacific Growth Fund - Page 27
<PAGE>
Any purchase order may be rejected by the Principal Underwriter or by the fund.
The Principal Underwriter will not knowingly sell shares of the fund directly or
indirectly to any person or entity, where, after the sale, such person or entity
would own beneficially directly or indirectly more than 4.5% of the outstanding
shares of the fund without the consent of a majority of the fund's Board of
Trustees.
SELLING SHARES
Shares are sold at the net asset value next determined after your request is
received in good order by the Transfer Agent. Sales of certain Class A and B
shares may be subject to deferred sales charges. You may sell (redeem) shares
in your account in any of the following ways:
THROUGH YOUR DEALER (certain charges may apply)
- Shares held for you in your dealer's street name must be sold
through the dealer.
WRITING TO AMERICAN FUNDS SERVICE COMPANY
- Requests must be signed by the registered shareholder(s)
- A signature guarantee is required if the redemption is:
- Over $50,000;
- Made payable to someone other than the registered
shareholder(s); or
- Sent to an address other than the address of record, or an
address of record which has been changed within the last
10 days.
Your signature may be guaranteed by a domestic stock exchange or the National
Association of Securities Dealers, Inc., bank, savings association or credit
union that is an eligible guarantor institution.
- Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.
- You must include any shares you wish to sell that are in
certificate form.
TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE/(R)/ OR AMERICAN FUNDSLINE ONLINE/(R)/
- Redemptions by telephone or fax (including American FundsLine/(R)/ and
American FundsLine OnLine/(R)/) are limited to $50,000 per shareholder each
day.
- Checks must be made payable to the registered shareholder(s).
- Checks must be mailed to an address of record that has been used
with the account for at least 10 days.
EuroPacific Growth Fund - Page 28
<PAGE>
MONEY MARKET FUNDS
- You may have redemptions of $1,000 or more wired to your bank by writing
American Funds Service Company.
- You may establish check writing privileges (use the money market funds
application).
- If you request check writing privileges, you will be provided with
checks that you may use to draw against your account. These checks may
be made payable to anyone you designate and must be signed by the
authorized number or registered shareholders exactly as indicated on
your checking account signature card.
- Check writing is not available for Class B shares of The Cash
Management Trust.
If you sell Class B shares and request a specific dollar amount to be sold, we
will sell sufficient shares so that the sale proceeds, after deducting any
contingent deferred sales charge, equals the dollar amount requested.
Redemption proceeds will not be mailed until sufficient time has passed to
provide reasonable assurance that checks or drafts (including certified or
cashier's checks) for shares purchased have cleared (which may take up to 15
calendar days from the purchase date). Except for delays relating to clearance
of checks for share purchases or in extraordinary circumstances (and as
permissible under the 1940 Act), sale proceeds will be paid on or before the
seventh day following receipt and acceptance of an order. Interest will not
accrue or be paid on amounts that represent uncashed distribution or redemption
checks.
You may reinvest proceeds from a redemption or a dividend or capital gain
distribution of Class A or Class B shares without a sales charge in the Class A
shares of any fund in The American Funds Group within 90 days after the date of
the redemption or distribution (any contingent deferred sales charge on Class A
shares will be credited to your account). Redemption proceeds of shares
representing direct purchases in the money market funds are excluded. Proceeds
will be reinvested at the next calculated net asset value after your request is
received and accepted by the Transfer Agent.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - An automatic investment plan enables you to make
monthly or quarterly investments into The American Funds through automatic
debits from your bank account. To set up a plan you must fill out an account
application and specify the amount you would like to invest ($50 minimum) and
the date on which you would like your investments to occur. The plan will begin
within 30 days after your account application is received. Your bank account
will be debited on the day or a few days before your investment is made,
depending on the bank's capabilities. The Transfer Agent will then invest your
money into the fund you specified on or around the date you specified. For
example, if the date you specified falls on a weekend or holiday, your money
will be invested on the next business day. If your bank account cannot be
debited due to insufficient funds, a stop-payment or the closing of the account,
the
EuroPacific Growth Fund - Page 29
<PAGE>
plan may be terminated and the related investment reversed. You may change the
amount of the investment or discontinue the plan at any time by writing to the
Transfer Agent.
AUTOMATIC REINVESTMENT - Dividends and capital gain distributions are reinvested
in additional shares of the same class at no sales charge unless you indicate
otherwise on the account application. You also may elect to have dividends
and/or capital gain distributions paid in cash by informing the fund, the
Transfer Agent or your investment dealer.
If you have elected to receive dividends and/or capital gain distributions in
cash, and the postal or other delivery service is unable to deliver checks to
your address of record, or you do not respond to mailings from American Funds
Service Company with regard to uncashed distribution checks, your distribution
option will automatically be converted to having all dividends and other
distributions reinvested in additional shares.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - You may cross-reinvest
dividends and capital gains ("distributions") of the same share class into any
other fund in The American Funds Group at net asset value, subject to the
following conditions:
(a) The aggregate value of your account(s) in the fund(s) paying distributions
equals or exceeds $5,000 (this is waived if the value of the account in the fund
receiving the distributions equals or exceeds that fund's minimum initial
investment requirement),
(b) If the value of the account of the fund receiving distributions is below
the minimum initial investment requirement, distributions must be automatically
reinvested,
(c) If you discontinue the cross-reinvestment of distributions, the value of
the account of the fund receiving distributions must equal or exceed the minimum
initial investment requirement. If you do not meet this requirement within 90
days of notification, the fund has the right to automatically redeem the
account.
EXCHANGE PRIVILEGE - You may only exchange shares into other funds in The
American Funds Group within the same class. However, exchanges from Class A
shares of The Cash Management Trust of America may be made to Class B shares of
any other American Fund for dollar cost averaging purposes. Exchange purchases
are subject to the minimum investment requirements of the fund purchased and no
sales charge generally applies. However, exchanges of shares from the money
market funds are subject to applicable sales charges on the fund being
purchased, unless the money market fund shares were acquired by an exchange from
a fund having a sales charge, or by reinvestment or cross-reinvestment of
dividends or capital gain distributions.
You may exchange shares by writing to the Transfer Agent (see "Redeeming
Shares"), by contacting your investment dealer, by using American FundsLine and
American FundsLine OnLine (see "American FundsLine and American FundsLine
OnLine" below), or by telephoning 800/421-0180 toll-free, faxing (see "Principal
Underwriter and Transfer Agent" in the prospectus for the appropriate fax
numbers) or telegraphing the Transfer Agent. (See "Telephone and Computer
Purchases, Redemptions and Exchanges" below.) Shares held in corporate-type
retirement plans for which Capital Guardian Trust Company serves as trustee may
not be exchanged by telephone, computer, fax or telegraph. Exchange redemptions
and purchases are processed simultaneously at the share prices next determined
after the exchange order is
EuroPacific Growth Fund - Page 30
<PAGE>
received. (See "Purchase of Shares--Price of Shares.") THESE TRANSACTIONS HAVE
THE SAME TAX CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES - You may automatically exchange shares of the same class in
amounts of $50 or more among any of the funds in The American Funds Group on any
day (or preceding business day if the day falls on a non-business day of each
month you designate.
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
ACCOUNT STATEMENTS - Your account is opened in accordance with your registration
instructions. Transactions in the account, such as additional investments will
be reflected on regular confirmation statements from the Transfer Agent.
Dividend and capital gain reinvestments and purchases through automatic
investment plans and certain retirement plans will be confirmed at least
quarterly.
AMERICAN FUNDSLINE AND AMERICAN FUNDSLINE ONLINE - You may check your share
balance, the price of your shares, or your most recent account transaction,
redeem shares (up to $50,000 per shareholder each day), or exchange shares
around the clock with American FundsLine and American FundsLine OnLine. To use
these services, call 800/325-3590 from a TouchTone(TM) telephone or access the
American Funds Web site on the Internet at www.americanfunds.com. Redemptions
and exchanges through American FundsLine and American FundsLine OnLine are
subject to the conditions noted above and in "Shareholder Account Services and
Privileges - Telephone and Computer Purchases, Redemptions and Exchanges" below.
You will need your fund number (see the list of funds in The American Funds
Group under "Purchase of Shares - Purchase Minimums" and "Purchase of Shares -
Fund Numbers"), personal identification number (generally the last four digits
of your Social Security number or other tax identification number associated
with your account) and account number.
TELEPHONE AND COMPUTER PURCHASES, REDEMPTIONS AND EXCHANGES - By using the
telephone (including American FundsLine) or computer (including American
FundsLine OnLine), fax or telegraph purchase, redemption and/or exchange
options, you agree to hold the fund, the Transfer Agent, any of its affiliates
or mutual funds managed by such affiliates, and each of their respective
directors, trustees, officers, employees and agents harmless from any losses,
expenses, costs or liability (including attorney fees) which may be incurred in
connection with the exercise of these privileges. Generally, all shareholders
are automatically eligible to use these options. However, you may elect to opt
out of these options by writing the Transfer Agent (you may also reinstate them
at any time by writing the Transfer Agent). If the Transfer Agent does not
employ reasonable procedures to confirm that the instructions received from any
person with appropriate account information are genuine, the fund may be liable
for losses due to unauthorized or fraudulent instructions. In the event that
shareholders are unable to reach the fund by telephone because of technical
difficulties, market conditions, or a natural disaster, redemption and exchange
requests may be made in writing only.
EuroPacific Growth Fund - Page 31
<PAGE>
REDEMPTION OF SHARES - The fund's Declaration of Trust permits the fund to
direct the Transfer Agent to redeem the shares of any shareholder for their then
current net asset value per share if at such time the shareholder owns of record
shares having an aggregate net asset value of less than the minimum initial
investment amount required of new shareholders as set forth in the fund's
current registration statement under the 1940 Act, and subject to such further
terms and conditions as the Board of Trustees of the fund may from time to time
adopt.
SHARE CERTIFICATES - Shares are credited to your account and certificates are
not issued unless you request them by writing to the Transfer Agent.
EXECUTION OF PORTFOLIO TRANSACTIONS
The Investment Adviser places orders for the fund's portfolio securities
transactions. The Investment Adviser strives to obtain the best available prices
in its portfolio transactions taking into account the costs and quality of
executions. When, in the opinion of the Investment Adviser, two or more brokers
(either directly or through their correspondent clearing agents) are in a
position to obtain the best price and execution, preference may be given to
brokers who have sold shares of the fund or who have provided investment
research, statistical, or other related services to the Investment Adviser. The
fund does not consider that it has an obligation to obtain the lowest available
commission rate to the exclusion of price, service and qualitative
considerations.
There are occasions on which portfolio transactions for the fund may be executed
as part of concurrent authorizations to purchase or sell the same security for
other funds served by the Investment Adviser, or for trusts or other accounts
served by affiliated companies of the Investment Adviser. Although such
concurrent authorizations potentially could be either advantageous or
disadvantageous to the fund, they are effected only when the Investment Adviser
believes that to do so is in the interest of the fund. When such concurrent
authorizations occur, the objective is to allocate the executions in an
equitable manner. The fund will not pay a mark-up for research in principal
transactions.
Brokerage commissions paid on portfolio transactions for the fiscal years ended
March 31, 1999, 1999 and 1998, amounted to $24,925,000, $22,795,000 and
$18,418,000, respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by The Chase Manhattan Bank, One Chase Manhattan Plaza, New York, NY
10081, as Custodian. If the fund holds non-U.S. securities, the Custodian may
hold these securities pursuant to sub-custodial arrangements in non-U.S. banks
or non-U.S. branches of U.S. banks.
TRANSFER AGENT - American Funds Service Company, a wholly owned subsidiary of
the Investment Adviser, maintains the records of each shareholder's account,
processes purchases and redemptions of the fund's shares, acts as dividend and
capital gain distribution disbursing agent, and performs other related
shareholder service functions. American Funds Service Company was paid a fee of
$15,869,000 for the 1999 fiscal year.
INDEPENDENT ACCOUNTANTS - PricewaterhouseCoopers LLP, 400 South Hope Street, Los
Angeles, CA 90071, serves as the fund's independent accountants providing audit
services,
EuroPacific Growth Fund - Page 32
<PAGE>
preparation of tax returns and review of certain documents to be filed with the
Securities and Exchange Commission. The financial statements included in this
Statement of Additional Information from the Annual Report have been so included
in reliance on the report of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in accounting and
auditing. The selection of the fund's independent accountants is reviewed and
determined annually by the Board of Trustees.
PROSPECTUSES AND REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on March
31. Shareholders are provided updated prospectuses annually. In addition,
shareholders are provided at least semiannually with reports showing the
investment portfolio, financial statements and other information. The fund's
annual financial statements are audited by the fund's independent accountants,
PricewaterhouseCoopers LLP. In an effort to reduce the volume of mail
shareholders receive from the fund when a household owns more than one account,
the Transfer Agent has taken steps to eliminate duplicate mailings of
prospectuses and shareholder reports. To receive additional copies of a
prospectus or report, shareholders should contact the Transfer Agent.
PERSONAL INVESTING POLICY - The fund, Capital Research and Management Company
and its affiliated companies, including the fund's principal underwriter, have
adopted codes of ethics which allow for personal investments. The personal
investing policy is consistent with Investment Company Institute guidelines.
This policy includes: a ban on acquisitions of securities pursuant to an initial
public offering; restrictions on acquisitions of private placement securities;
pre-clearance and reporting requirements; review of duplicate confirmation
statements; annual recertification of compliance with codes of ethics; blackout
periods on personal investing for certain investment personnel; ban on
short-term trading profits for investment personnel; limitations on service as a
director of publicly traded companies; and disclosure of personal securities
transactions.
OTHER INFORMATION - The financial statements including the investment portfolio
and the report of Independent Accountants contained in the Annual Report are
included in this Statement of Additional Information. The following information
is not included in the Annual Report:
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE FOR CLASS A SHARES -- MARCH 31, 1999
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) . . . . . . . . . $30.21
Maximum offering price per share
(100/94.25 of net asset value per share,
which takes into account the fund's current maximum
sales charge). . . . . . . . . . . . . . . . . . . . . . . . $32.05
</TABLE>
CLASS A SHARE INVESTMENT RESULTS AND RELATED STATISTICS
The fund's yield was 0.86% based on a 30-day (or one month) period ended
September 30,1999, computed by dividing the net investment income per share
earned during the period by the maximum offering price per share on the
last day of the period, according to the following formula:
EuroPacific Growth Fund - Page 33
<PAGE>
YIELD = 2[( a-b/cd + 1)/6/ -1]
Where: a = dividends and interest earned during the period.
b =
expenses accrued for the period (net of reimbursements).
c =
the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d =
the maximum offering price per share on the last day of the
period.
The fund may also calculate a distribution rate on a taxable and tax equivalent
basis. The distribution rate is computed by dividing the dividends paid by the
fund over the last 12 months by the sum of the month-end net asset value or
maximum offering price and the capital gains paid over the last 12 months. The
distribution rate may differ from the yield.
The fund's one-year total return, five-year average annual total return, and
lifetime average annual total return for periods ended September 30, 1999 were
35.10%, 13.60%, and 16.04% respectively. The fund's one-year total return,
five-year average annual total return, and lifetime average annual total return
at net asset value for the periods ended September 30 were 43.35%, 14.95%, and
16.49% respectively.
The average total return ("T") is computed by equating the value at the end of
the period ("ERV") with a hypothetical initial investment of $1,000 ("P") over a
period of years ("n") according to the following formula as required by the
Securities and Exchange Commission: P(1+T)/n/ = ERV.
In calculating average annual total return, the fund assume: (1) deduction of
the maximum sales load of 5.75% from the $1,000 initial investment; (2)
reinvestment of dividends and distributions at net asset value on the
reinvestment date determined by the Board; and (3) a complete redemption at the
end of any period illustrated. In addition, the fund will provide lifetime
average total return figures. From time to time, the fund may calculate
investment results for Class B shares.
The fund may also, at times, calculate total return based on net asset value per
share (rather than the offering price), in which case the figure would not
reflect the effect of any sales charges which would have been paid if shares
were purchased during the period reflected in the computation. Consequently,
total return calculated in this manner will be higher. These total returns may
be calculated over periods in addition to those described above. Total return
for the unmanaged indices will be calculated assuming reinvestment of dividends
and interest, but will not reflect any deductions for advisory fees, brokerage
costs or administrative expenses.
The fund may include information on its investment results and/or comparisons of
its investment results to various unmanaged indices (such as the Dow Jones
Average of 30 Industrial Stocks and the Standard and Poor's 500 Composite Stock
Index) or results of other mutual funds or investment or savings vehicles in
advertisements or in reports furnished to present or prospective shareholders.
The fund may also, from time to time, combine its results with those of other
funds in The American Funds Group for purposes of illustrating investment
strategies involving multiple funds.
EuroPacific Growth Fund - Page 34
<PAGE>
The fund may refer to results and surveys compiled by organizations such as CDA/
Wiesenberger, Ibbotson Associates, Lipper Analytical Services, Morningstar,
Inc., and by the U.S. Department of Commerce. Additionally, the fund may refer
to results published in various newspapers and periodicals, including Barron's,
Forbes, Fortune, Institutional Investor, Kiplinger's Personal Finance Magazine,
Money, U.S. News and World Report and The Wall Street Journal.
The fund may illustrate the benefits of tax-deferral by comparing taxable
investments to investments made through tax-deferred retirement plans.
The fund may compare its investment results with the Consumer Price Index, which
is a measure of the average change in prices over time in a fixed market basket
of goods and services (e.g. food, clothing, and fuels, transportation, and other
goods and services that people buy for day-to-day living).
EuroPacific Growth Fund - Page 35
<PAGE>
APPENDIX
Description of Bond Ratings
BOND RATINGS - The ratings of Moody's Investors Service, Inc. (Moody's) and
Standard & Poor's Corporation (S&P) represent their opinions as to the quality
of the municipal bonds which they undertake to rate. It should be emphasized,
however, that ratings are general and are not absolute standards of quality.
Consequently, municipal bonds with the same maturity, coupon and rating may
have different yields, while municipal bonds of the same maturity and coupon
with different ratings may have the same yield.
Moody's rates the long-term debt securities issued by various entities from
- -------
"Aaa" to "C." Moody's applies the numerical modifiers 1, 2, and 3 in each
generic rating classification from Aa through B in its corporate bond rating
system. The modifier 1 indicates that the security ranks in the higher end of
its generic rating category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end of its generic
rating category. Ratings are described as follows:
"Bonds which are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as 'gilt edge.'
Interest payments are protected by a large or by an exceptionally stable
margin, and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues."
"Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group, they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities, or fluctuation of
protective elements may be of greater amplitude, or there may be other elements
present which make the long-term risks appear somewhat larger than the Aaa
securities."
"Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future."
"Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and, in
fact, have speculative characteristics as well."
"Bonds which are rated Ba are judged to have speculative elements; their future
cannot be considered as well assured. Often the protection of interest and
principal payments may be very moderate and thereby not well safeguarded during
both good and bad times over the future. Uncertainty of position characterizes
bonds in this class."
"Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small."
EuroPacific Growth Fund - Page 36
<PAGE>
"Bonds which are rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest."
"Bonds which are rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked shortcomings."
"Bonds which are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing."
S & P rates the long-term securities debt of various entities in categories
- -----
ranging from "AAA" to "D" according to quality. The ratings from "AA" to "CCC"
may be modified by the addition of a plus (+) or minus (-) sign to show relative
standing within the major rating categories. Ratings are described as follows:
"Debt rated 'AAA' has the highest rating assigned by S & P. Capacity to pay
interest and repay principal is extremely strong."
"Debt rated 'AA' has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree."
"Debt rated 'A' has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories."
"Debt rated 'BBB' is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity to pay interest and repay principal for debt in this
category than in higher rated categories."
"Debt rated 'BB' has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments. The 'BB'
rating category is also used for debt subordinated to senior debt that is
assigned an actual or impled 'BBB-' rating.
"Debt rated 'B' has a greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal. The 'B' rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied 'BB' or 'BB-'
rating."
"The rating 'CC' is typically applied to debt subordinated to senior debt that
is assigned an actual or implied 'CCC' rating."
"The rating 'C' is typically applied to debt subordinated to senior debt which
is assigned an actual or implied 'CCC-' debt rating. The 'C' rating may be used
to cover a situation where a bankruptcy petition has been filed, but debt
service payments are continued."
"The rating 'C1' is reserved for income bonds on which no interest is being
paid."
EuroPacific Growth Fund - Page 37
"Debt rated 'D' is in payment default. The 'D' rating category is used when
interest payments or principal payments are not made on the date due even if the
applicable grace period has not expired, unless S&P believes that such payments
will be made during such grace period. The 'D' rating also will be used upon
the filing of a bankruptcy petition if debt service payments are jeopardized."
EuroPacific Growth Fund - Page 38
<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>
<TABLE>
<S> <C> <C> <C>
EuroPacific Growth Fund
Investment Portfolio, March 31, 1999
Largest Percent
Individual of Net
Industry Diversification Holdings Assets
Percent of Net Assets
19.13% Telecommunications Mannesmann 3.42
8.43% Banking Telecom Italia 2.50
7.20% Health & Personal Care Astra 2.42
5.61% Broadcasting & Publishing Telefonos de Mexico 1.67
5.38% Electronic Components Deutsche Telekom 1.65
44.28% Other Industries Nokia 1.65
.56% Bonds & Notes Novartis 1.59
9.41% Cash and Equivalents News Corp. 1.45
Dixons Group 1.37
Ericsson 1.34
Shares or Market Percent
Principal Value of Net
EQUITY SECURITIES (common and preferred stocks and convertible debentures ) Amount (Millions) Assets
- -------------------------------------------- -------- -------- --------
TELECOMMUNICATIONS - 19.13%
Mannesmann AG (Germany) 5,907,500 754.277 3.42
Telecom Italia SpA, nonconvertible savings shares (Italy) 55,084,500 327.525
Telecom Italia SpA, ordinary shares 21,200,000 225.173 2.50
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 5,147,000 337.129
Telefonos de Mexico, SA de CV, Class L 9,612,500 31.419 1.67
Deutsche Telekom AG (Germany) 8,929,983 363.839 1.65
Orange PLC (United Kingdom) (1) 15,274,500 213.649 .97
Telecom Italia Mobile SpA (Italy) 14,805,000 99.150
Telecom Italia Mobile SpA, savings shares 20,705,000 79.823 .81
Telefonica, SA (Spain) 3,779,900 160.289 .73
Swisscom AG (Switzerland) (1) 406,810 159.091 .72
Tele Danmark AS (Denmark) 997,200 98.816
Tele Danmark AS, Class B (ADR) 1,012,100 49.593 .67
COLT Telecom Group PLC (United Kingdom) (1) 7,696,000 138.438
COLT Telecom Group PLC 2.00% convertible debentures 2005 DM5,000,000 3.197 .64
Koninklijke PTT Nederland NV (Netherlands) 3,240,947 128.900 .58
France Telecom, SA (France) 1,274,444 103.026 .47
DDI Corp. (Japan) 21,755 102.852 .47
Vodafone Group PLC (United Kingdom) 4,274,948 79.313
Vodafone Group PLC (ADR) 105,000 19.714 .45
Teleglobe Inc. (Canada) 3,100,000 94.388 .43
Telecom Corp. of New Zealand Ltd. (New Zealand) 13,889,200 67.844
Telecom Corp. of New Zealand Ltd. (2) 4,107,000 20.061
Telecom Corp. of New Zealand Ltd. (ADR) 63,600 2.480 .41
Philippine Long Distance Telephone Co. (ADR) (Philippines) 1,624,094 42.023
Philippine Long Distance Telephone Co., convertible preferred
Series III (GDR) 400,000 19.000
Philippine Long Distance Telephone Co. 533,120 14.088 .34
NTT Mobile Communications Network, Inc. (Japan) 1,479 73.045 .33
Compania de Telecomunicaciones de Chile SA (ADR) (Chile) 3,051,273 71.896 .33
British Telecommunications PLC (United Kingdom) 4,000,000 65.489 .30
Videsh Sanchar Nigam Ltd. (GDR) (India) (2) 3,781,159 38.568
Videsh Sanchar Nigam Ltd. 450,000 7.227
Videsh Sanchar Nigam Ltd. (GDR) 486,950 4.967 .22
SK Telecom Co., Ltd. (ADR) (South Korea) 1,861,650 22.689
SK Telecom Co., Ltd. 21,927 19.072 .19
Telefonica de Argentina SA, Class B (ADR) (Argentina) 1,189,400 35.979 .16
Mahanagar Telephone Nigam Ltd. (India) 6,850,000 28.571
Mahanagar Telephone Nigam Ltd. (GDR) (2) 570,600 6.063 .16
Telefonica del Peru SA, Class B (ADR) (Peru) 2,408,900 30.713 .14
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp.
(ADR) (Indonesia) 892,700 11.549
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. 7,290,500 9.770 .09
Magyar Tavkozlesi Rt. (ADR) (Hungary) 655,500 17.535 .08
Telstra Corp. Ltd. (Australia) 2,800,000 14.691 .07
Telecom Argentina STET-France Telecom SA, Class B (ADR) (Argentina) 439,300 12.053 .05
Millicom International Cellular SA (Luxembourg) (1) 440,000 11.440 .05
Telesp Celular Participacoes SA, preferred nominative (Brazil) 194,412,100 7.255
Telesp Celular Participacoes SA, ordinary nominative 39,540,000 .945 .03
BANKING - 8.43%
Bank of Nova Scotia (Canada) 12,098,200 257.212 1.16
Westpac Banking Corp. (Australia) 25,275,696 184.750 .85
ABN AMRO Holding NV (Netherlands) 8,528,000 177.642 .80
Fuji Bank, Ltd. (Japan) 12,871,000 76.172
Fuji JGB Investment LLC, Series A, 9.87% noncumulative
preferred (2) 41,000,000 36.490 .50
HSBC Holdings PLC (United Kingdom) 3,508,374 110.019 .50
Sakura Bank, Ltd. (Japan) 32,369,000 98.104
Sakura Finance (Bermuda) Trust, convertible preference share units 1,614,000,000 9.606 .49
Australia and New Zealand Banking Group Ltd. (Australia) 14,736,339 107.245 .49
Bank of Scotland (United Kingdom) 7,385,000 98.629 .45
Asahi Bank, Ltd. (Japan) 15,834,000 83.548 .38
Royal Bank of Canada (Canada) 1,752,700 82.258 .37
ForeningsSparbanken AB, Class A (Sweden) 3,400,000 80.072 .36
Bangkok Bank PCL (Thailand) (1) 32,400,000 66.475 .31
Tokai Bank, Ltd. (Japan) 9,662,000 62.320 .28
Commonwealth Bank of Australia (Australia) 3,666,248 60.328 .27
Hang Seng Bank Ltd. (Hong Kong) 6,095,500 56.047 .25
STB Cayman Capital Ltd. 0.50% convertible debentures 2007 (Japan) Y5,925,000,000 49.021 .22
Royal Bank of Scotland Group PLC (United Kingdom) 2,067,974 45.106 .20
Banque Nationale de Paris (France) 475,000 41.321 .19
Allied Irish Banks, PLC (Ireland) 1,050,000 18.128 .08
Barclays Bank PLC (United Kingdom) 522,400 15.103 .07
Unidanmark A/S, Class A (Denmark) 212,000 14.478 .07
Unibanco-Uniao de Bancos Brasileiros SA, units (GDR) (Brazil) 600,000 11.550 .05
MBL International Finance (Bermuda) Trust 3.00% convertible
debentures 2002 (Bermuda) $10,000,000 10.625 .05
Toyo Trust and Banking Co., Ltd. (Japan) 2,800,000 8.723 .04
HEALTH & PERSONAL CARE - 7.20%
Astra AB, Class A (Sweden) 20,514,400 470.640
Astra AB, Class B 2,832,267 64.288 2.42
Novartis AG (Switzerland) 215,866 350.673 1.59
Zeneca Group PLC (United Kingdom) 5,693,900 266.975 1.21
Elan Corp., PLC (ADR) (Ireland) (1) 2,337,400 163.034 .74
Glaxo Wellcome PLC (United Kingdom) 2,185,000 72.887
Glaxo Wellcome PLC (ADR) 1,000,000 66.937 .63
SmithKline Beecham PLC (ADR) (United Kingdom) 850,000 60.775 .28
Synthelabo (France) 128,000 27.837 .13
Shiseido Co., Ltd. (Japan) 1,628,000 22.540 .10
Fujisawa Pharmaceutical Co. Ltd. (Japan) 1,469,000 23.129 .10
BROADCASTING & PUBLISHING - 5.61%
News Corp. Ltd. (ADR) (Australia) 3,958,200 116.767
News Corp. Ltd., preferred 15,423,952 106.270
News Corp. Ltd. 8,735,006 64.803
News Corp. Ltd., preferred (ADR) 1,181,600 32.494 1.45
CANAL + (France) 680,015 199.265 .90
Mediaset SpA (Italy) (2) 9,174,544 86.207
Mediaset SpA 8,093,000 76.045 .73
Grupo Televisa, SA, ordinary participation certificates
(ADR) (Mexico) (1) 4,347,700 136.409 .62
Pearson PLC (United Kingdom) 2,460,000 55.873 .25
Thomson Corp. (Canada) 1,660,000 46.524 .21
Fuji Television Network Inc. (Japan) 9,195 46.577 .21
Nippon Television Network Corp. (Japan) 113,650 43.752 .20
Pathe (France) 165,000 42.384 .19
Television Broadcasts Ltd. (Hong Kong) 10,677,000 38.924 .18
Publishing & Broadcasting Ltd. (Australia) 5,429,789 31.060 .14
Arnoldo Mondadori Editore SpA (Italy) (1) 1,950,000 29.105 .13
Modern Times Group MTG AB, Class B (ADR) (Sweden) (1) 211,822 18.852
Modern Times Group MTG AB, Class A (1) 302,260 5.113 .11
Societe Europeenne des Satellites SA, Class A (FDR) (Luxemborg) (1) 150,000 20.399 .09
Daily Mail and General Trust PLC, Class A (United Kingdom) 395,000 19.149 .09
United News & Media PLC 6.125% convertible
debentures 2003 (United Kingdom) GBP7,400,000 12.670 .06
Independent Newspapers, PLC (Ireland) 2,249,202 10.196 .05
ELECTRONIC COMPONENTS - 5.38%
Murata Manufacturing Co., Ltd. (Japan) 5,371,000 285.667 1.29
Rohm Co., Ltd. (Japan) 2,235,000 266.992 1.21
Samsung Electronics Co., Ltd. (South Korea) 3,324,289 257.592
Samsung Electronics Co., Ltd. (GDR) (2) 203,596 8.327 1.21
Hoya Corp. (Japan) 2,294,000 130.145 .59
Hon Hai Precision Industry Co. Ltd. (Taiwan) (1) 19,400,000 103.678 .47
Hirose Electric Co., Ltd. (Japan) 1,000,000 83.580 .38
Siliconware Precision Industries Co., Ltd. (Taiwan) 23,199,400 47.281 .21
LG Semicon Co., Ltd. (South Korea) 395,233 4.046 .02
BUSINESS & PUBLIC SERVICES - 5.16%
Rentokil Initial PLC (United Kingdom) 31,860,900 197.123 .89
Reuters Group PLC (United Kingdom) 12,094,933 177.176 .80
TNT Post Groep (Netherlands) 5,126,900 154.384 .70
Vivendi SA (France) 482,170 118.600 .56
Brambles Industries Ltd. (Australia) 4,005,000 102.039 .46
United Utilities PLC (United Kingdom) 4,978,414 60.237 .27
Securitas AB, Class B (Sweden) 3,108,000 49.175 .22
Hyder PLC (United Kingdom) 3,850,000 48.758 .22
Hays PLC (United Kingdom) 4,600,000 47.904 .22
Thames Water PLC (United Kingdom) 2,786,597 42.349 .19
Comparex Holdings Ltd. (South Africa) 4,500,000 35.127 .16
Ratin A/S, Class B (Denmark) 140,000 25.224 .11
Dimension Data Holdings Ltd. (South Africa) (1) 5,267,818 23.424 .11
ALTRAN TECHNOLOGIES (France) 100,000 25.364 .11
TT Tieto Oy (Finland) 500,000 20.588 .09
SAP AG (Germany) 37,000 11.900 .05
ELECTRICAL & ELECTRONICS - 4.40%
Nokia Corp., Class A (Finland) 1,438,000 231.408
Nokia Corp., Class A (ADR) 850,000 132.388 1.65
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 8,580,100 208.853
Telefonaktiebolaget LM Ericsson, Class B (ADR) 3,620,000 86.201 1.34
Matsushita Communication Industrial Co., Ltd. (Japan) 1,600,000 108.198 .49
Siemens AG (Germany) 1,000,000 66.809 .30
ECI Telecom Ltd. (Israel) 1,765,000 61.775 .28
Premier Farnell PLC (United Kingdom) 13,567,800 47.280 .21
Northern Telecom Ltd. (Canada) 460,000 28.577 .13
AUTOMOBILES - 3.91%
Bayerische Motoren Werke AG (Germany) 383,480 249.771
Bayerische Motoren Werke AG, preferred 56,726 20.873 1.22
Suzuki Motor Corp. (Japan) 14,565,000 193.175 .87
Volvo AB, Class B (Sweden) 4,970,000 130.353 .59
Honda Motor Co., Ltd. (Japan) 1,890,000 85.365 .39
Peugeot SA (France) 500,000 71.881 .33
Mitsubishi Motors Corp. (Japan) (1) 17,820,000 66.496 .30
Porsche AG, preferred (Germany) 10,000 24.554 .11
Nissan Motor Co., Ltd. (Japan) 4,000,000 15.534 .07
Mazda Motor Corp. (Japan) 1,669,000 6.482 .03
MERCHANDISING - 3.40%
Dixons Group PLC (United Kingdom) 14,350,000 302.774 1.37
Kingfisher PLC (United Kingdom) 6,862,231 86.629 .40
Carrefour SA (France) 98,000 75.521 .34
Cifra, SA de CV, Class V (Mexico) (1) 36,408,570 57.167
Cifra, SA de CV, Class C (1) 8,402,600 12.981 .32
Koninklijke Ahold NV (Netherlands) 1,076,010 41.228
Koninklijke Ahold NV 3.00% convertible debentures 2003 $18,900,000 12.096 .24
Tesco PLC (United Kingdom) 17,744,600 47.510 .22
H & M Hennes & Mauritz AB, Class B (Sweden) 500,000 37.729 .17
Safeway PLC (United Kingdom) 7,615,000 29.945 .14
Coles Myer Ltd. (Australia) 5,311,047 28.886 .13
George Weston Ltd. (Canada) 350,000 14.801 .06
Amway Japan Ltd. (ADR) (Japan) 581,250 2.543 .01
Edgars Stores Ltd. (South Africa) 57,720 .298 .00
ENERGY SOURCES - 2.82%
Royal Dutch Petroleum Co. (Netherlands) 1,600,000 85.049
Royal Dutch Petroleum Co. (New York Registered Shares) 280,000 14.560
"Shell" Transport and Trading Co., PLC
(New York Registered Shares) (United Kingdom) 675,000 27.422 .57
Broken Hill Proprietary Co. Ltd. (Australia) 14,767,604 126.246 .57
Elf Aquitaine (France) 790,000 107.263 .49
TOTAL, Class B (ADR) (France) 828,807 50.557
TOTAL, Class B 185,693 22.868 .33
Sasol Ltd. (South Africa) 13,213,700 65.404 .30
Norsk Hydro AS (Norway) 650,000 26.495
Norsk Hydro AS (ADR) 500,000 20.187 .21
ENI SpA (Italy) 3,500,000 22.401
ENI SpA (ADR) 250,000 15.781 .17
YPF SA, Class D (ADR) (Argentina) 850,000 26.828 .12
Electrafina SA (Belgium) 107,764 12.503 .06
INSURANCE - 2.73%
ING Groep NV (Netherlands) 5,231,681 288.257 1.31
PartnerRe Holdings Ltd. (Singapore - Incorporated in Bermuda) 2,031,900 82.292 .37
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 7,753,283 73.299 .33
Union des Assurances Federales (France) 493,960 59.177 .27
Allied Zurich PLC (United Kingdom) (1) 4,065,000 54.760 .25
Swiss Life-Glaxo Wellcome 2.00% convertible debentures
2003 (Switzerland) (2) $15,000,000 16.970
Swiss Life-Mannesmann 1.50% convertible debentures 2003 (2) $8,000,000 10.490 .12
Corporacion Mapfre, CIR, SA (Spain) 858,500 16.947 .08
MULTI-INDUSTRY - 2.44%
Orkla AS, Class A (Norway) 7,896,000 121.076
Orkla AS, Class B 2,000,000 26.656 .67
BTR Siebe PLC (formerly Siebe PLC) (United Kingdom) 30,780,000 137.303 .62
Lend Lease Corp. Ltd. (Australia) 7,006,526 89.472 .40
Hutchison Whampoa Ltd. (Hong Kong) 7,735,000 60.890 .28
Lagardere Groupe SCA (France) 920,000 29.878 .14
TI Group PLC (United Kingdom) 3,983,500 25.835 .12
Swire Pacific Ltd., Class A (Hong Kong) 5,000,000 23.229 .10
Ayala Corp. (Philippines) 62,388,750 18.991 .09
PT Astra International (Indonesia) (1) 54,000,000 5.180 .02
Groupe Bruxelles Lambert SA (Belgium) (1) 126,900 .006 .00
BEVERAGES & TOBACCO - 1.98%
Foster's Brewing Group Ltd. (Australia) 54,501,800 160.770 .73
South African Breweries PLC (United Kingdom) (1) 7,947,287 69.000 .31
Panamerican Beverages, Inc., Class A (Mexico) 3,322,800 58.357 .26
Coca-Cola Amatil Ltd. (Australia) 9,534,119 41.450
Coca-Cola Beverages PLC (United Kingdom) (1) 9,567,371 15.512 .26
Swedish Match AB (Sweden) 11,076,924 38.827 .18
San Miguel Corp., Class B (Philippines) 17,556,700 29.337 .13
Asahi Breweries, Ltd. (Japan) 1,056,000 13.819
Asahi Breweries, Ltd. 1.00% convertible debentures 2003 Y413,000,000 4.707
Asahi Breweries, Ltd. 0.90% convertible debentures 2001 Y296,000,000 3.399
Asahi Breweries, Ltd. 0.95% convertible debentures 2002 Y178,000,000 1.958 .11
I.T.C. Ltd. (India) 372 .008 .00
FOOD & HOUSEHOLD PRODUCTS - 1.70%
Reckitt & Colman PLC (United Kingdom) 11,772,175 127.627 .58
Nestle SA (Switzerland) 69,000 125.535 .57
Groupe Danone (France) 161,185 40.552 .18
Raisio Group PLC (Finland) 3,771,700 34.968 .16
Cadbury Schweppes PLC (United Kingdom) 2,000,000 29.168 .13
Benckiser NV, Class B (Netherlands) 300,000 16.821 .08
RECREATION & OTHER CONSUMER PRODUCTS - 1.64%
Nintendo Co., Ltd. (Japan) 1,702,200 146.868 .66
EMI Group PLC (United Kingdom) 10,500,000 74.958 .34
Fuji Photo Film Co., Ltd. (Japan) 1,280,000 48.412 .22
Sony Music Entertainment (Japan) Inc. (Japan) 474,800 35.875 .16
Bajaj Auto Ltd. (India) 2,047,500 29.777
Bajaj Auto Ltd. (GDR) 75,000 1.275 .14
Square Co., Ltd. (Japan) 730,000 26.069 .12
APPLIANCES & HOUSEHOLD DURABLES - 1.33%
Sony Corp. (Japan) 2,153,500 199.078 .90
Koninklijke Philips Electronics NV (formerly Philips Electronics NV)
(Netherlands) 1,170,000 95.277 .43
UTILITIES: ELECTRIC & GAS - 1.29%
Cia. Energetica de Minas Gerais - CEMIG, preferred nominative
(ADR) (Brazil) 3,433,226 75.960
Cia. Energetica de Minas Gerais - CEMIG, ordinary nominative 311,044,152 4.298
Cia. Energetica de Minas Gerais - CEMIG, preferred nominative
(ADR) (2) 26,066 .577
Cia. Energetica de Minas Gerais - CEMIG, preferred nominative 596 0 .36
Manila Electric Co., Class A (GDR) (Philippines) (1,2,3) 3,110,000 39.379
Manila Electric Co., Class B 9,540,381 31.636 .32
National Power PLC (United Kingdom) 7,135,400 54.881 .25
Centrais Eletricas Brasileiras SA - ELETROBRAS,
Class B, preferred nominative (ADR) (Brazil) 2,100,500 21.530
Centrais Eletricas Brasileiras SA - ELETROBRAS,
ordinary nominative (ADR) 419,000 3.981 .12
Scottish Power PLC (United Kingdom) 2,350,000 20.586 .09
Cia. Paranaense de Energia - COPEL, Class B, preferred nominative
(ADR) (Brazil) 2,018,000 15.135 .07
Enersis SA (ADR) (Chile) 316,900 8.497 .04
LIGHT-Servicos de Eletricidade SA (Brazil) 41,650,000 3.886 .02
CESP - Cia. Energetica de Sao Paulo, preferred nominative
(ADR) (Brazil) 455,084 2.731
CESP - Cia. Energetica de Sao Paulo, preferred nominative (ADR) (2) 297,000 1.782 .02
REAL ESTATE - 1.16%
Cheung Kong (Holdings) Ltd. (Hong Kong) 10,138,000 77.190 .35
Sun Hung Kai Properties Ltd. (Hong Kong) 8,150,000 61.001 .28
Hongkong Land Holdings Ltd. (Hong Kong - Incorporated in Bermuda) 34,363,300 44.672 .20
Mitsubishi Estate Co., Ltd. (Japan) 2,657,000 27.030 .12
Ayala Land, Inc. (Philippines) 83,880,000 24.447 .11
Security Capital Global Realty (Luxembourg) (1,2,3) 1,125,000 22.500 .10
INDUSTRIAL COMPONENTS - 1.07%
NGK Spark Plug Co., Ltd. (Japan) 6,412,000 73.945 .33
Minebea Co., Ltd. (Japan) 4,559,000 47.110 .22
Cie. Generale des Etablissements Michelin, Class B (France) 1,009,444 45.269 .20
Valeo (France) 530,000 41.472 .19
Bridgestone Corp. (Japan) 775,000 19.759 .09
Morgan Crucible Co. PLC (United Kingdom) 2,550,836 8.848 .04
FOREST PRODUCTS & PAPER - 1.03%
UPM-Kymmene Corp. (Finland) 3,680,800 101.701 .45
Abitibi-Consolidated Inc. (Canada) 9,500,000 85.074 .39
Stora Enso Oyj (formerly Stora Kopparbergs Bergslags AB) (Finland) 2,394,843 23.780 .11
AssiDoman AB (Sweden) 828,000 16.829 .08
FINANCIAL SERVICES - 0.96%
Nichiei Co., Ltd. (Japan) 1,342,900 120.288 .54
Newcourt Credit Group Inc. (Canada) 2,231,640 60.251 .27
ORIX Corp. (Japan) 420,000 31.522 .15
DATA PROCESSING & REPRODUCTION - 0.90%
Fujitsu Ltd. (Japan) 8,446,000 135.621 .62
Acer Inc. (Taiwan) (1) 47,125,000 62.748 .28
CHEMICALS - 0.75%
BOC Group PLC (United Kingdom) 6,430,000 89.705 .41
L'Air Liquide (France) (1) 261,095 38.889 .18
Bayer AG (Germany) 600,000 22.471 .10
Imperial Chemical Industries PLC (ADR) (United Kingdom) 430,000 15.399 .06
BUILDING MATERIALS & COMPONENTS - 0.60%
Cemex, SA de CV, ordinary participation certificates (Mexico) 18,063,379 73.753
Cemex, SA de CV, Class B 2,210,625 9.282
Cemex, SA de CV, Class A, ordinary participation certificates 1,793,075 7.444 .41
Holderbank Financiere Glaris Ltd. (Switzerland) 38,045 42.601 .19
MACHINERY & ENGINEERING - 0.58%
GKN PLC (United Kingdom) 4,270,000 65.168 .30
Valmet Oy (Finland) 3,400,000 39.081 .18
Kvaerner AS, Class A (Norway) 924,800 16.455 .07
Kawasaki Heavy Industries, Ltd. (Japan) 3,330,000 7.253 .03
METALS: NONFERROUS - 0.56%
Pechiney, Class A (France) 2,878,675 104.083 .47
WMC Ltd. (Australia) 6,064,917 19.351 .09
OTHER INDUSTRIES - 2.08%
Bombardier Inc., Class B (Canada) 8,400,000 110.607 .50
Seagram Co. Ltd. (Canada) 1,200,000 60.000 .27
Buhrmann NV (Netherlands) 2,744,000 47.682 .22
ADVANTEST CORP. (Japan) 545,200 41.655 .19
Mitsui & Co., Ltd. (Japan) 5,600,000 37.869 .17
Qantas Airways Ltd. (Australia) 14,109,102 37.369 .17
Granada Group PLC (United Kingdom) 1,648,765 33.835 .15
Tokyo Electron Ltd. (Japan) 575,000 29.757 .14
Stolt-Nielsen SA, Class B (ADR) (Incorporated in Luxembourg) 1,147,500 13.985
Stolt-Nielsen SA 837,000 9.050 .10
Bergesen d.y. AS, Class B (Norway) 1,130,000 14.622
Bergesen d.y. AS, Class A 542,800 7.446 .10
Rank Group PLC (United Kingdom) 2,500,000 9.120 .04
Mandarin Oriental International Ltd. (Singapore) 9,670,312 6.286 .03
MISCELLANEOUS - 1.79%
Other equity securities in intial period of acquisition 394.852 1.79
---------- ----------
TOTAL EQUITY SECURITIES (cost: $13,907.584 million) 19,881.562 90.03
---------- ----------
BONDS & NOTES
Principal
Amount
(Millions)
BROADCASTING & PUBLISHING - .08%
Grupo Televisa, SA 0%/13.25% 2008 (4) $20.000 16.850 .08
MULTI-INDUSTRY - .01%
Hutchison Whampoa Finance (CI) Ltd., Series D, 6.988% 2037 (1) 1.350 1.278
Hutchison Whampoa, Series C, 7.50% 2027 (1) 1.450 1.248 .01
GOVERMENTS AND GOVERNMENTAL AUTHORITIES
(excluding U.S. government) - .47%
Brazil (Federal Republic of), Bearer 8.00% 2014 130.645 83.286 .38
Argentina (Republic of)11.75% 2007 ARP14.000 12.854
Argentina (Republic of)11.375% 2017 7.500 7.097 .09
---------- ----------
TOTAL BONDS & NOTES (cost: $111.319 million) 122.613 .56
---------- ----------
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (Millions) (Millions) Assets
Corporate Short-Term Notes - 7.03%
BMW U.S. Capital Corp. 4.77%-4.80% due 4/12-5/5/1999 92.000 91.786 .42
International Business Machines Corp. 4.81%-4.86%
due 4/21-6/10/1999 80.000 79.590 .36
FCE Bank PLC 4.81%-4.83% due 4/09-5/21/1999 79.200 78.870 .36
Ciesco LP 4.78%-4.83% due 4/8-5/20/1999 77.900 77.511 .35
Associates First Capital Finance BV 4.83%-4.87%
due 4/29-6/7/1999 77.400 76.967 .35
Abbey National North America 4.80%-4.84% due 4/12-5/13/1999 75.000 74.681 .33
DaimlerChrylser NA Holdings 4.82%-4.87% due 4/28-5/24/1999 70.775 70.375 .33
Halifax PLC 4.75%-4.83% due 4/7-6/3/1999 68.500 68.186 .31
Xerox Capital (Europe) PLC 4.78%-4.80% due 4/27-5/5/1999 66.000 65.723 .29
Toyota Motor Credit Corp. 4.80%-4.82% due 4/6-6/28/1999 57.671 57.233 .26
Lloyds Bank PLC 4.83%-4.84% due 4/1-4/6/1999 57.200 57.173 .26
Rio Tinto America Inc. 4.83%-4.84% due 5/25-6/7/1999 56.000 55.496 .25
American Honda Finance Corp. 4.83%-4.85% due 4/13-5/25/1999 55.200 54.880 .25
British Columbia (Province of) 4.77%-4.97% due 4/13-5/13/1999 53.775 53.634 .25
Canadian Wheat Board 4.80% due 5/27/1999 53.283 52.875 .24
General Electric Capital Corp. 4.80%-4.84% due 5/7-5/19/1999 51.400 51.108 .23
Commonwealth Bank of Australia 4.85% due 4/12/1999 50.000 49.920 .23
American Express Credit Corp. 4.77%-4.82% due 4/23-4/26/1999 45.300 45.148 .20
Svenska Handelsbanken 4.78%-4.89% due 5/3-5/28/1999 45.000 44.783 .20
Motiva Enterprises LLC 4.83%-4.88% due 4/9-5/11/1999 42.500 42.304 .19
Westpac Capital Corp. 4.82% due 4/13/1999 40.000 39.931 .19
Telstra Corp. Ltd. 4.80%-4.86% due 4/16-5/14/1999 40.000 39.876 .18
France Telecom 4.83% due 4/13-5/17/1999 40.000 39.801 .18
Repsol International Finance BV 4.80%-4.82% due 5/10-7/15/1999 38.800 38.367 .17
Siemens Capital Corp. 4.74%-4.80% due 4/21-5/26/1999 36.800 36.660 .16
BP America Inc. 4.74%-4.79% due 4/22-5/13/1999 35.900 35.774 .16
ABN-AMRO North America Finance Inc. 4.80% due 4/8/1999 25.000 24.973 .11
Societe Generale North America Inc. 4.78% due 4/28/1999 25.000 24.906 .11
Barclays U.S. Funding Corp. 4.81% due 6/8/1999 25.000 24.767 .11
Federal Agency Discount Notes - 1.65%
Freddie Mac 4.73%-4.80% due 4/12-6/10/1999 193.600 192.393 .87
Fannie Mae 4.71%-4.79% due 4/6-6/10/1999 171.539 170.980 .78
Certificates of Deposit - 0.57%
Barclays Bank PLC 4.87% due 4/15/1999 50.000 50.000 .23
Rabobank Nederland NV 4.85% due 5/6/1999 50.000 49.997 .23
Canadian Imperial Bank of Commerce 4.84% due 4/5/1999 25.000 25.000 .11
Non-U.S. Currency - 0.03%
New Taiwanese Dollar NT$255.268 7.707 .03
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: $2,050.961 million) 2,049.375 9.28
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: $16,069.864 million) 22,053.550 99.87
Excess of cash and receivables over payables 29.425 .13
---------- ----------
NET ASSETS $22,082.975 100.00%
========== ======
(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
The descriptions of the companies shown in the portfolio, which
were obtained from published reports and other sources believed
to be reliable, are supplemental, and are not covered by the
Report of Independent Accountants.
See Notes to Financial Statements
</TABLE>
EQUITY SECURITIES APPEARING IN THE PORTFOLIO SINCE SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
Acer Elan Imperial Chemical Industries
Allied Zurich Electrafina NGK Spark Plug
ALTRAN TECHNOLOGIES Enersis NTT Mobile Communications Network
Amway Japan Fuji Television Network Raisio Group
Arnoldo Mondadori Editore Fujisawa Pharmaceutical Rank Group
Banque Nationale de Paris George Weston SAP
Barclays Bank GKN Swisscom
Benckiser Hang Seng Bank Teleglobe
Comparex Holdings Hays Telesp Celular
ECI Telecom Hon Hai Precision Industry TT Tieto
Edgars Stores Hongkong Land Holdings Valeo
</TABLE>
EQUITY SECURITIES ELIMINATED FROM THE PORTFOLIO SINCE SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
Adidas-Salomon Grupo Financiero Banamex Accival MAYR-MELNHOF Karton
AJL PEPS Trust Guangshen Railway Merkantildata
Alcan Aluminium Guardian Royal Exchange Mitsui Fudosan
Banco Itau Gucci Group Mitsui Trust and Banking
Bank of Montreal Hanil Bank MTI Capital (Cayman)
BPB Hongkong Electric Holdings Nippon Telegraph and Telephone
Brierley Investments Hong Kong Telecommunications Nippon Yusen
Caradon Imperial Oil NSK
Cathay Pacific Inco Shinhan Bank
Christiania Bank Ito-Yokado SOFTBANK
Cia. Cervejaria Brahma Jardine Strategic Holdings Suez Lyonnaise des Eaux
Cie. Financiere Richemont Kawasaki Steel Teck
Cominco Komori Telecomunicacoes Brasileiras
Daimler-Benz Kookmin Bank Toyota Motor
Delta Electronics Lloyds TSB Group Woodside Petroleum
Gambro LVMH Moet Hennessy Louis Vuitton Woolworths
</TABLE>
<TABLE>
<S> <C> <C>
EuroPacific Growth Fund
Financial Statements
- ----------------------------- -------- --------
Statement of Assets and Liabilities
at March 31, 1999 (dollars in millions)
- ----------------------------- -------- --------
ASSETS:
Investment securities at market
(cost: $16,069.864) $22,053.550
Cash 1.578
Receivables for-
Sales of investments $17.919
Sales of fund's shares 29.897
Dividends and accrued interest 82.915 130.731
-------- --------
22,185.859
LIABILITIES:
Payables for-
Purchases of investments 44.356
Repurchases of fund's shares 43.456
Management services 8.583
Accrued expenses 6.489 102.884
-------- --------
NET ASSETS AT MARCH 31, 1999-
Equivalent to $30.21 per share on
730,990,876 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $22,082.975
==========
Statement of Operations
for the year ended March 31, 1999 (dollars in millions)
- ----------------------------- -------- --------
INVESTMENT INCOME:
Income:
Dividends $341.656
Interest 132.846 $474.502
--------
Expenses:
Management services fee 96.690
Distribution expenses 48.882
Transfer agent fee 15.869
Reports to shareholders .653
Registration statement and prospectus 1.183
Postage, stationery and supplies 2.872
Trustees' fees .207
Auditing and legal fees .096
Custodian fee 7.402
Taxes other than federal income tax .321
Other expenses .379 174.554
-------- --------
Net investment income 299.948
--------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 769.649
Net change in unrealized appreciation on:
Investments 527.740
Net increase in unrealized appreciation
Forward currency contracts (3.822) 523.918
-------- --------
Net realized gain and unrealized
appreciation on investments 1,293.567
--------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $1,593.515
==========
- ----------------------------- -------- --------
Statement of Changes in Net Assets Year ended March 31
(dollars in millions) 1999 1998
- ----------------------------- -------- --------
OPERATIONS:
Net investment income $ 299.948 $ 314.266
Net realized gain on investments 769.649 1,082.594
Net increase in unrealized appreciation
on investments 523.918 2,212.606
-------- --------
Net increase in net assets resulting
from operations 1,593.515 3,609.466
-------- --------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (258.117) (294.902)
Distributions from net realized gain on
investments (901.166) (1301.823)
-------- --------
Total dividends and distributions (1159.283) (1596.725)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 149,373,115
and 177,804,677 shares, respectively 4,252.412 4,969.746
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 39,600,216 and 58,392,228 shares,
respectively 1,110.693 1,529.590
Cost of shares repurchased: 179,052,856
and 142,024,433 shares, respectively (5030.545) (3932.937)
-------- --------
Net increase in net assets resulting from
capital share transactions 332.560 2,566.399
-------- --------
TOTAL INCREASE IN NET ASSETS 766.792 4,579.140
NET ASSETS:
Beginning of year 21,316.183 16,737.043
-------- --------
End of year (including undistributed
net investment income: $65.361
and $71.284, respectively) $22,082.975 $21,316.183
========== ==========
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 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. Securities with original maturities of one year or less having 60 days or
less to maturity are amortized to maturity based on their cost if acquired
within 60 days of maturity or, if already held on the 60th day, based on the
value determined on the 61st day. 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.
NON-U.S. CURRENCY TRANSLATION - Assets or 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 are
included with the net realized and unrealized gain or loss on investment
securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - As is customary in the
mutual fund industry, securities transactions are accounted for on the date the
securities are purchased or sold. In the event the fund purchases securities on
a delayed-delivery or "when-issued" basis, it will segregate with its custodian
liquid assets in an amount sufficient to meet its payment obligations in these
transactions. Realized gains and losses from securities transactions are
reported on an identified cost basis. Dividend and interest income is reported
on the accrual basis. Discounts and premiums on securities purchased are
amortized.
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. 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.
3. FEDERAL INCOME TAXATION
It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of March 31, 1999, net unrealized appreciation on investments, excluding
forward currency contracts, for book and federal income tax purposes aggregated
$5,983,490,000, net of accumulated deferred taxes totaling $196,000 on
unrealized appreciation of Indian securities, of which $6,848,150,000 related
to appreciated securities and $864,464,000 related to depreciated securities.
During the year ended March 31, 1999, the fund realized, on a tax basis, a net
capital gain of $767,021,000 on securities transactions. Net gains related to
non-U.S. currency and other transactions of $2,628,000 were treated as ordinary
income for federal income tax purposes. The cost of portfolio securities,
excluding forward currency contracts, for federal income tax purposes was
$16,079,407,000 at March 31, 1999.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $96,690,000 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 year ended March 31, 1999,
distribution expenses under the Plan were $48,882,000. As of March 31, 1999,
accrued and unpaid distribution expenses were $3,794,000.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $6,399,000 (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 $15,869,000.
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 March 31, 1999, aggregate deferred compensation and earnings thereon since
the plan's adoption (1993), net of any payments to Trustees, were $654,000.
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 $5,832,297,000 and $6,423,027,000, respectively,
during the year ended March 31, 1999.
As of March 31, 1999, accumulated undistributed net realized gain on
investments was $137,172,000 and paid-in capital was $15,166,355,000. The fund
reclassified $99,000 to undistributed net investment income from undistributed
net realized gains; and reclassified $47,853,000 and $67,505,000 from
undistributed net investment income and undistributed net realized gains,
respectively, to paid-in capital for the year ended March 31, 1999.
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 $7,402,000 includes $179,000 that was paid by these
credits rather than in cash.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
year ended March 31, 1999, such non-U.S. taxes were $38,344,000. 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 $808,000 for the year
ended March 31, 1999.
At March 31, 1999, the fund had no outstanding forward currency contracts to
sell non-U.S. currencies.
<TABLE>
<S> <C> <C> <C> <C> <C>
Per-Share Data and Ratios
Year Ended March 31
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Year $29.56 $26.70 $24.28 $20.89 $21.95
------ ------ ------ ------ ------
Income From Investment Operations:
Net investment income .42 .45 .46 .46 .35
Net gains or losses on securities (both
realized and unrealized) 1.85 4.79 3.28 3.63 (.19)
------ ------ ------ ------ ------
Total from investment operations 2.27 5.24 3.74 4.09 .16
------ ------ ------ ------ ------
Less Distributions:
Dividends (from net investment income) (.36) (.433) (.41) (.49) (.317)
Dividends (from net realized non-U.S. currency gains) (1) - (.017) (.03) - (.003)
Distributions (from capital gains) (1.26) (1.93) (.88) (.21) (.90)
------ ------ ------ ------ ------
Total distributions (1.62) (2.38) (1.32) (.70) (1.22)
------ ------ ------ ------ ------
Net Asset Value, End of Year $30.21 $29.56 $26.70 $24.28 $20.89
====== ====== ====== ====== ======
Total Return (2) 8.18% 20.97% 15.88% 19.84% .71%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $22,083 $21,316 $16,737 $12,335 $8,588
Ratio of expenses to average net assets .84% .86% .90% .95% .97%
Ratio of net income to average net assets 1.45% 1.64% 1.77% 2.09% 1.80%
Portfolio turnover rate 31.73% 30.51% 25.82% 21.77% 16.02%
(1) Realized non-U.S. currency gains are treated as ordinary
income for federal income tax purposes.
(2) Excludes maximum sales charge of 5.75%.
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of EuroPacific Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of EuroPacific Growth Fund (the
"Fund") at March 31, 1999, the results of its operations, the changes in its
net assets and the per-share data and ratios for the years indicated in
conformity with generally accepted accounting principles. These financial
statements and per-share data and ratios (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at March 31, 1999 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
/s/ PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
April 30, 1999
EUROPACIFIC GROWTH FUND
SHAREHOLDER SERVICES
AMERICAN FUNDSLINE(R)
Stay on top of your investment day and night by calling our 24-hour automated
phone system. Order checks, exchange shares between funds, sell shares, confirm
transactions - all on your timetable.
FUNDSLINE ONLINE(R)
Visit our Web site when you want to obtain information about your account or
the funds, make redemptions and exchanges or download a prospectus.
AMERICAN FUNDSLINK(SM)
Link your fund account to your bank account for direct transfers between the
two. Also allows you to purchase shares using American FundsLine or FundsLine
Online.
AUTOMATIC TRANSACTIONS
Use this service when you want to make transactions on a regular basis. You may
purchase shares, invest dividends in the same fund or another American Fund,
sell shares and exchange shares between funds - all handled automatically per
your instructions.
REDUCED SALES CHARGE
Add to your purchasing power by reducing your sales charge. Purchases of
$50,000 or more (stock funds or stock and bond funds) and $25,000 or more (bond
funds) qualify for a reduced sales charge. To help reach a breakpoint, you may
- -
* Add your purchase to the value of all your eligible household accounts and/or
* Add your present purchase to purchases you intend to make over 13 months
Assets in money market fund accounts generally don't apply when determining
sales charges.
RETIREMENT PLANS
Look to the American Funds for your retirement plan needs, whether a new or
rollover IRA, a Roth or traditional IRA, or a company-sponsored SIMPLE IRA,
401(k) or 403(b) plan.
FLEXIBLE DIVIDEND OPTIONS
Use your dividend and capital gain distributions to meet your changing needs.
You may -
* Invest dividends and capital gain distributions back into the fund
* Diversify by investing dividends and capital gain distributions into another
American Fund
* Take dividends in cash
* Have dividends paid directly to someone else
BECAUSE CERTAIN TRANSACTIONS HAVE RESTRICTIONS OR TAX CONSEQUENCES, PLEASE
CONSULT YOUR FINANCIAL ADVISER BEFORE REQUESTING CHANGES.
WOULD YOU LIKE MORE INFORMATION?
Your financial adviser will be happy to explain these services in greater
detail, or you may
contact American Funds Service Company.
To contact American Funds Service Company:
Shareholder Services Representative - 8 a.m. to 8 p.m. Eastern time -
800/421-0180
American FundsLine - 24-hour automated telephone system - 800/325-3590
FundsLine OnLine - Web site - www.americanfunds.com
By mail - Write to the service center nearest you.
(If you live outside the United States, please write to the western service
center.)
WESTERN
AMERICAN FUNDS
SERVICE COMPANY
[map of Western part of U.S.]
P.O. Box 2205
Brea, CA 92822-2205
WEST CENTRAL
AMERICAN FUNDS
SERVICE COMPANY
[map of West Central part of U.S.]
P.O. Box 659522
San Antonio, TX 78265-9522
EAST CENTRAL
AMERICAN FUNDS
SERVICE COMPANY
[map of East Central part of U.S.]
P.O. Box 6007
Indianapolis, IN 46206-6007
EASTERN
AMERICAN FUNDS
SERVICE COMPANY
[map of Eastern part of U.S.]
P.O. Box 2280
Norfolk, VA 23501-2280
Please obtain the applicable prospectuses from your financial adviser or our
Web site and read them carefully before investing or sending money. American
Funds reserves the right to terminate or modify these services.
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by the
fund were earned from the following sources:
<TABLE>
<CAPTION>
Dividends and Distributions per Share
To Payment Date From Net From Net From Net
Shareholders of Record Investment Realized Realized
Income Short-term Long-term
Gains Gains
<S> <C> <C> <C> <C>
June 5, 1998 June 8, 1998 $ .21 - $ .48
December 16, 1998 December 17, 1998 .15 - .78
</TABLE>
The fund also designates as a capital gain distribution a portion of earnings
and profits paid to shareholders in redemption of their shares.
The fund makes an election under the Internal Revenue Code Section 853 to pass
through non-U.S. taxes paid by the fund to its shareholders. The amount of
non-U.S. taxes for the fiscal year ended March 31, 1999 is $0.0533 on a
per-share basis. Foreign source income earned by the fund was $0.3154 on a
per-share basis. Shareholders are entitled to a foreign tax credit or an
itemized deduction, at their option. Generally, it is more advantageous to
claim a credit rather than to take a deduction.
Corporate shareholders may exclude up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, none of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV AND OTHER TAX
INFORMATION WHICH WERE MAILED IN JANUARY 1999 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 1998 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
