SEC File Nos. 2-83847
811-3734
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 22
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 22
EuroPacific Growth Fund
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(213) 486-9200
Vincent P. Corti
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
MICHAEL J. FAIRCLOUGH, ESQ.
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071
(Counsel for the Registrant)
Approximate date of proposed public offering:
It is proposed that this filing become effective on June 1, 2000, pursuant to
paragraph (b) of rule 485.
<PAGE>
EuroPacific Growth Fund/(R)/
Prospectus
JUNE 1, 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>
TICKER NEWSPAPER FUND
SYMBOL ABBREVIATION NUMBER
------------------------------------------------------------
<S> <C> <C> <C>
Class A AEPGX EupacA 16
Class B AEGBX EupacB 216
</TABLE>
<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 18
-------------------------------------------------------
How to Sell Shares 19
-------------------------------------------------------
Distributions and Taxes 21
-------------------------------------------------------
Financial Highlights 22
-------------------------------------------------------
</TABLE>
1
EUROPACIFIC GROWTH FUND / PROSPECTUS
EUPAC-010-0300/M
<PAGE>
---------------------------------------------------------
RISK/RETURN SUMMARY
The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe and 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. Securities in the fund's
portfolio may be adversely affected by currency fluctuations or world
political, social and economic instability. The prices of equity securities
owned by the fund may be affected by events specifically involving the
companies issuing those securities.
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 year-to-date return for the three months ended March 31, 2000 was
4.57%.
------------------------------------------------------------------------------
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 began 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 began investment operations on March 15, 2000, no results are available
as of the most recent calendar year-end.
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 0.46% 0.46%
Distribution and/or Service (12b-1) Fees 0.25%/2/ 1.00%/3/
Other Expenses 0.13% 0.13%
Total Annual Fund Operating Expenses 0.84% 1.59%
</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 $662 $902 $1,066 $1,688
Class B - assuming no redemption $162 $502 $ 866 $1,688
</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 and 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
investments. 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 began 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, 2000.
INDUSTRY DIVERSIFICATION
[pie chart]
Electronic Components 11.66&
Diversified Telecommunications Services 11.51%
Electrical & Electronics 7.84%
Wireless Telecommunications Services 7.70%
Broadcasting & Publishing 7.59%
Other Industries 45.52%
Bonds & Notes 0.42%
Cash & Cash Equivalents 7.76%
[end pie chart]
<TABLE>
<CAPTION>
PERCENT INVESTED BY PERCENT OF TEN LARGEST PERCENT OF
COUNTRY NET ASSETS INDIVIDUAL HOLDINGS NET ASSETS
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EUROPE Vodafone AirTouch 5.68%
--------------------------------------- ----------------------------------
United Kingdom 17.6% Samsung Electronics 2.62
----------------------------------
France 5.1 Rohm 2.16
----------------------------------
Germany 4.6 Ericsson 2.10
----------------------------------
Netherlands 3.5 AstraZeneca 2.04
----------------------------------
Sweden 3.4 Telefonos de Mexico 1.94
----------------------------------
Italy 3.1 Murata Manufacturing 1.80
----------------------------------
Finland 2.2 Taiwan Semiconductor 1.70
----------------------------------
Ireland 1.5 Nokia 1.70
----------------------------------
Switzerland 1.3 News Corp. 1.50
----------------------------------
Norway .8
Spain .7
Denmark .5
Other Europe 1.1
PACIFIC BASIN
---------------------------------------
ASIA
Japan 23.2
South Korea 4.5
Australia 4.1
Taiwan 4.0
Hong Kong .7
Philippines .3
Other Asia .7
THE AMERICAS
Canada 3.3
Mexico 3.1
Other Americas .2
------------
OTHER
---------------------------------------
Brazil .6
South Africa .5
India .5
Other Countries 1.1
</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 and with the Securities and
Exchange Commission rules adopted in 1999 governing Codes of Ethics. 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
(INCLUDING THE LAST FIVE YEARS)
YEARS OF EXPERIENCE
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 began 37 years 37 years
VANDEVENTER the fund. Director, Capital 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 to
Research and Management becoming a portfolio counselor
Company. Senior Vice President, for the fund)
Capital Research Company*
--------------------------------------------------------------------
-------------------------------------------------
STEPHEN E. Executive Vice President of the 16 years (since the fund began 27 years 34 years
BEPLER fund. Senior Vice President, 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 to
and Director, Capital Research becoming a portfolio counselor
Company* 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 to
Research and Management becoming a portfolio counselor
Company. Senior Vice President, for the fund)
Capital Research Company*
--------------------------------------------------------------------
-------------------------------------------------
ALWYN W. Vice President of the fund. 4 years (plus 4 years as a 9 years 12 years
HEONG Vice President, Capital research professional prior to
Research Company* 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 to
Company* 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 or
eliminated 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 or eliminated 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.
American Funds Distributors pays compensation equal to 4% of the amount
invested to dealers who sell Class B shares.
15
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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.
---------------------------------------------------------
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.
16
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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
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 required minimum distributions from retirement accounts upon
reaching age 70 1/2; 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."
17
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
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.
18
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.
. American Funds Service Company reserves the right to require signature
guarantee(s) on all redemptions.
. 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.
19
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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.
20
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to you, if any, usually in December.
Capital gains, if any, are usually distributed in December. 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.
21
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the fund's
results for the past five years (the fund began investment operations for Class
B shares on March 15, 2000). 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>
Net gains on Dividends
Net asset securities Dividends (from net
value, Net (both realized Total from (from net realized non Distributions
Year ended beginning of investment and investment investment U.S. currency (from capital Total
March 31 period income unrealized) operations income) gains)/1/ gains) distributions
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $30.21 $.34/3/ $15.74/3/ $16.08 $(.29) - $(1.39) $(1.68)
1999 29.56 .42 1.85 2.27 (.36) - (1.26) (1.62)
1998 26.70 .45 4.79 5.24 (.43) $(.017) (1.93) (2.38)
1997 24.28 .46 3.28 3.74 (.41) (.03) (.88) (1.32)
1996 20.89 .46 3.63 4.09 (.49) - (.21) (0.70)
CLASS B:
2000 43.09 .03/3/ 1.47/3/ 1.50 - - - -
<CAPTION>
Ratio of Raio of
Net asset Net assets, expenses to income to
Year ended value, end of end of year average net average net Portfolio
March 31 year Total return/2/ (in millions) assets assets turnover rate
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $44.61 54.31% $38,837 .84% .93% 28.94%
1999 30.21 8.18 22,083 .84 1.45 31.73
1998 29.56 20.97 21,316 .86 1.64 30.51
1997 26.70 15.88 16,737 .90 1.77 25.82
1996 24.28 19.84 12,335 .95 2.09 21.77
CLASS B:
2000 44.59 3.48/4/ 30 .07/4/ .06/3/ 28.94/5/
</TABLE>
1 Realized non-U.S. currency gains are treated as ordinary income for federal
income purposes.
2 Excludes sales charge.
3 Based on average shares outstanding.
4 Based on operations for the period shown and, accordingly, not representative
of a full year.
5 Represents portfolio turnover rate for the year ended March 31, 2000.
EUROPACIFIC GROWTH FUND / PROSPECTUS
22
<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
THE FUND PROVIDES SPANISH TRANSLATIONS IN CONNECTION WITH THE PUBLIC OFFERING
AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH
TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS FOR THE FUND.
/s/ Vincent P. Corti
Vincent P. Corti
Secretary
<PAGE>
EuroPacific Growth Fund/(R)/
Prospectus
JUNE 1, 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>
TICKER NEWSPAPER FUND
SYMBOL ABBREVIATION NUMBER
------------------------------------------------------------
<S> <C> <C> <C>
Class A AEPGX EupacA 16
Class B AEGBX EupacB 216
</TABLE>
<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 18
-------------------------------------------------------
How to Sell Shares 19
-------------------------------------------------------
Distributions and Taxes 21
-------------------------------------------------------
Financial Highlights 22
-------------------------------------------------------
</TABLE>
1
EUROPACIFIC GROWTH FUND / PROSPECTUS
EUPAC-010-0300/M
<PAGE>
---------------------------------------------------------
RISK/RETURN SUMMARY
The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe and 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. Securities in the fund's
portfolio may be adversely affected by currency fluctuations or world
political, social and economic instability. The prices of equity securities
owned by the fund may be affected by events specifically involving the
companies issuing those securities.
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 year-to-date return for the three months ended March 31, 2000 was
4.57%.
------------------------------------------------------------------------------
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 began 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 began investment operations on March 15, 2000, no results are available
as of the most recent calendar year-end.
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 0.46% 0.46%
Distribution and/or Service (12b-1) Fees 0.25%/2/ 1.00%/3/
Other Expenses 0.13% 0.13%
Total Annual Fund Operating Expenses 0.84% 1.59%
</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 $662 $902 $1,066 $1,688
Class B - assuming no redemption $162 $502 $ 866 $1,688
</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 and 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
investments. 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 began 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, 2000.
INDUSTRY DIVERSIFICATION
[pie chart]
Electronic Components 11.66&
Diversified Telecommunications Services 11.51%
Electrical & Electronics 7.84%
Wireless Telecommunications Services 7.70%
Broadcasting & Publishing 7.59%
Other Industries 45.52%
Bonds & Notes 0.42%
Cash & Cash Equivalents 7.76%
[end pie chart]
<TABLE>
<CAPTION>
PERCENT INVESTED BY PERCENT OF TEN LARGEST PERCENT OF
COUNTRY NET ASSETS INDIVIDUAL HOLDINGS NET ASSETS
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EUROPE Vodafone AirTouch 5.68%
--------------------------------------- ----------------------------------
United Kingdom 17.6% Samsung Electronics 2.62
----------------------------------
France 5.1 Rohm 2.16
----------------------------------
Germany 4.6 Ericsson 2.10
----------------------------------
Netherlands 3.5 AstraZeneca 2.04
----------------------------------
Sweden 3.4 Telefonos de Mexico 1.94
----------------------------------
Italy 3.1 Murata Manufacturing 1.80
----------------------------------
Finland 2.2 Taiwan Semiconductor 1.70
----------------------------------
Ireland 1.5 Nokia 1.70
----------------------------------
Switzerland 1.3 News Corp. 1.50
----------------------------------
Norway .8
Spain .7
Denmark .5
Other Europe 1.1
PACIFIC BASIN
---------------------------------------
ASIA
Japan 23.2
South Korea 4.5
Australia 4.1
Taiwan 4.0
Hong Kong .7
Philippines .3
Other Asia .7
THE AMERICAS
Canada 3.3
Mexico 3.1
Other Americas .2
------------
OTHER
---------------------------------------
Brazil .6
South Africa .5
India .5
Other Countries 1.1
</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 and with the Securities and
Exchange Commission rules adopted in 1999 governing Codes of Ethics. 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
(INCLUDING THE LAST FIVE YEARS)
YEARS OF EXPERIENCE
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 began 37 years 37 years
VANDEVENTER the fund. Director, Capital 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 to
Research and Management becoming a portfolio counselor
Company. Senior Vice President, for the fund)
Capital Research Company*
--------------------------------------------------------------------
-------------------------------------------------
STEPHEN E. Executive Vice President of the 16 years (since the fund began 27 years 34 years
BEPLER fund. Senior Vice President, 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 to
and Director, Capital Research becoming a portfolio counselor
Company* 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 to
Research and Management becoming a portfolio counselor
Company. Senior Vice President, for the fund)
Capital Research Company*
--------------------------------------------------------------------
-------------------------------------------------
ALWYN W. Vice President of the fund. 4 years (plus 4 years as a 9 years 12 years
HEONG Vice President, Capital research professional prior to
Research Company* 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 to
Company* 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 or
eliminated 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 or eliminated 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.
American Funds Distributors pays compensation equal to 4% of the amount
invested to dealers who sell Class B shares.
15
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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.
---------------------------------------------------------
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.
16
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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
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 required minimum distributions from retirement accounts upon
reaching age 70 1/2; 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."
17
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
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.
18
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.
. American Funds Service Company reserves the right to require signature
guarantee(s) on all redemptions.
. 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.
19
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
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.
20
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
---------------------------------------------------------
DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to you, if any, usually in December.
Capital gains, if any, are usually distributed in December. 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.
21
EUROPACIFIC GROWTH FUND / PROSPECTUS
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the fund's
results for the past five years (the fund began investment operations for Class
B shares on March 15, 2000). 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>
Net gains on Dividends
Net asset securities Dividends (from net
value, Net (both realized Total from (from net realized non Distributions
Year ended beginning of investment and investment investment U.S. currency (from capital Total
March 31 period income unrealized) operations income) gains)/1/ gains) distributions
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $30.21 $.34/3/ $15.74/3/ $16.08 $(.29) - $(1.39) $(1.68)
1999 29.56 .42 1.85 2.27 (.36) - (1.26) (1.62)
1998 26.70 .45 4.79 5.24 (.43) $(.017) (1.93) (2.38)
1997 24.28 .46 3.28 3.74 (.41) (.03) (.88) (1.32)
1996 20.89 .46 3.63 4.09 (.49) - (.21) (0.70)
CLASS B:
2000 43.09 .03/3/ 1.47/3/ 1.50 - - - -
<CAPTION>
Ratio of Raio of
Net asset Net assets, expenses to income to
Year ended value, end of end of year average net average net Portfolio
March 31 year Total return/2/ (in millions) assets assets turnover rate
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $44.61 54.31% $38,837 .84% .93% 28.94%
1999 30.21 8.18 22,083 .84 1.45 31.73
1998 29.56 20.97 21,316 .86 1.64 30.51
1997 26.70 15.88 16,737 .90 1.77 25.82
1996 24.28 19.84 12,335 .95 2.09 21.77
CLASS B:
2000 44.59 3.48/4/ 30 .07/4/ .06/3/ 28.94/5/
</TABLE>
1 Realized non-U.S. currency gains are treated as ordinary income for federal
income purposes.
2 Excludes sales charge.
3 Based on average shares outstanding.
4 Based on operations for the period shown and, accordingly, not representative
of a full year.
5 Represents portfolio turnover rate for the year ended March 31, 2000.
EUROPACIFIC GROWTH FUND / PROSPECTUS
22
<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
June 1, 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 June
1, 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 6
Fund Organization and Voting Rights 8
Fund Trustees and Officers 9
Management 13
Dividends, Distributions and Taxes 15
Purchase of Shares 20
Sales Charges 22
Sales Charge Reductions and Waivers 24
Individual Retirement Account (IRA) Rollovers 27
Price of Shares 27
Selling Shares 29
Shareholder Account Services and Privileges 30
Execution of Portfolio Transactions 33
General Information 33
Class A Share Investment Results and Related Statistics 34
Appendix 37
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 and the Pacific Basin.
DEBT SECURITIES
. The fund may invest up to 5% of its assets in straight debt securities
rated Baa or 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.
INVESTING IN SMALLER CAPITALIZATION STOCKS - The fund may invest in the stocks
of smaller companies (typically companies with market capitalizations of less
than $1.5 billion at the time of purchase). The Investment Adviser believes that
the issuers of smaller capitalization stocks often provide attractive investment
opportunities. However, investing in smaller capitalization stocks can involve
greater risk than is customarily associated with investing in stocks of larger,
more established companies. For example, smaller companies often have limited
product lines, markets, or financial resources, may be dependent for management
on one or a few key persons, and can be more susceptible to losses. Also, their
securities may be thinly traded (and therefore have to be sold at a discount
from current prices or sold in small lots over an extended period of time), may
be followed by fewer investment research analysts, and may be subject to wider
price swings thus creating a greater chance of loss than securities of larger
capitalization companies.
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.
EuroPacific Growth Fund - Page 3
<PAGE>
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 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
EuroPacific Growth Fund - Page 4
<PAGE>
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
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.
FORWARD COMMITMENTS - The fund may enter into commitments to purchase or sell
securities at a future date. When the fund agrees to purchase such securities it
assumes the risk of any decline in value of the security beginning on the date
of the agreement. When the fund agrees to sell such securities it does not
participate in further gains or losses with respect to the securities beginning
on the date of the agreement. If the other party to such a transaction fails to
deliver or pay for the securities, the fund could miss a favorable price or
yield opportunity, or could experience a loss.
As the fund's aggregate commitments under these transactions increase, the
opportunity for leverage similarly increases. The fund will not use these
transactions for the purpose of leveraging and will segregate liquid assets
which will be marked to market daily in an amount sufficient to meet its payment
obligations in these transactions. Although these transactions will not be
entered into for leveraging purposes, to the extent the fund's aggregate
commitments under these transactions exceed its segregated assets, the fund
temporarily could be in a leveraged position (because it may have an amount
greater than its net assets subject to market risk). Should market values of the
fund's portfolio securities decline while the fund is in a leveraged position,
greater depreciation of its net assets would likely occur than were it not in
such a position. The fund will not borrow money to settle these transactions and
therefore, will
EuroPacific Growth Fund - Page 5
<PAGE>
liquidate other portfolio securities in advance of settlement if necessary to
generate additional cash to meet its obligations thereunder.
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.
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,
EuroPacific Growth Fund - Page 6
<PAGE>
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;
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 1/2 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.
EuroPacific Growth Fund - Page 7
<PAGE>
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 8
<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, 2000
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Elisabeth Allison Trustee Administrative Director, ANZI, Ltd. $ 27,500
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, $24,900/3/
P.O. Box 457 Foster Farms, Inc.
Livingston, CA 95334
Age: 63
-----------------------------------------------------------------------------------------------------------------
Alan Greenway Trustee President, Greenway Associates, Inc. $ 27,600
7413 Fairway Road (management consulting services)
La Jolla, CA 92037
Age: 72
-----------------------------------------------------------------------------------------------------------------
Koichi Itoh Trustee Group Vice President - Asia/Pacific, $27,500/3/
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; $25,600/3/
45 East Seventh Street President, Greenspring Co.; former
St. Paul, MN 55101 President, American Public Radio (now
Age: 58 Public Radio International)
-----------------------------------------------------------------------------------------------------------------
John G. McDonald Trustee The IBJ Professor of Finance, Graduate $24,900/3/
Graduate School of School of Business, Stanford
Business University
Stanford University
Stanford, CA 94305
Age: 63
-----------------------------------------------------------------------------------------------------------------
++ William I. Miller Trustee Chairman of the Board, Irwin Financial $27,000/3/
500 Washington Street Corporation
Box 929
Columbus, IN 47202
Age: 44
-----------------------------------------------------------------------------------------------------------------
Kirk P. Pendleton Trustee Chairman/Chief Executive Officer, $27,500/3/
Cairnwood, Inc. Cairnwood, Inc. (venture capital
1800 Byberry Road investment)
Huntingdon, PA 19006
Age: 60
-----------------------------------------------------------------------------------------------------------------
Donald E. Petersen Trustee Former Chairman of the Board and Chief $25,100/3/
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, 2000 SERVES/2/
--------------------------------------------------------------------------
<S> <C> <C>
Elisabeth Allison $ 72,500 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 $151,000/3/ 7
P.O. Box 457
Livingston, CA 95334
Age: 63
--------------------------------------------------------------------------
Alan Greenway $ 114,000 5
7413 Fairway Road
La Jolla, CA 92037
Age: 72
--------------------------------------------------------------------------
Koichi Itoh $73,000/3/ 3
Autosplice Inc.
3-7-39 Minami-cho
Higashi-Kurume City
Tokyo, Japan 203-0031
Age: 59
--------------------------------------------------------------------------
William H. Kling $112,500/3/ 6
45 East Seventh Street
St. Paul, MN 55101
Age: 58
--------------------------------------------------------------------------
John G. McDonald $239,500/3/ 8
Graduate School of
Business
Stanford University
Stanford, CA 94305
Age: 63
--------------------------------------------------------------------------
++ William I. Miller $72,000/3/ 3
500 Washington Street
Box 929
Columbus, IN 47202
Age: 44
--------------------------------------------------------------------------
Kirk P. Pendleton $147,000/3/ 6
Cairnwood, Inc.
1800 Byberry Road
Huntingdon, PA 19006
Age: 60
--------------------------------------------------------------------------
Donald E. Petersen $110,000/3/ 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 9
<PAGE>
EuroPacific Growth Fund - Page 10
<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 2000
fiscal year for participating Trustees is as follows: Robert A. Fox
($328,110), Koichi Itoh ($135,919), William H. Kling ($162,752), John G.
McDonald ($152,979), William I. Miller ($134,963), Kirk P. Pendleton
($129,422) and Donald E. Petersen ($34,108). 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 11
<PAGE>
OTHER 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 37 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 40 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 33 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.
All of the officers listed, except Hiromi Ishikawa, are officers, and/or
directors/trustees of one or more of the other funds for which Capital Research
and Management Company serves as Investment Adviser.
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
EuroPacific Growth Fund - Page 12
<PAGE>
affiliated with the Investment Adviser. As of May 1, 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.
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.
EuroPacific Growth Fund - Page 13
<PAGE>
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 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 Class A 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. To the extent the fund's management fee must be
waived due to Class A share expense ratios exceeding the above limit, management
fees will be reduced similarly for all classes of shares of the fund or other
Class A fees will be waived in lieu of management fees. For the fiscal years
ended 2000, 1999, and 1998, the Investment Adviser received advisory fees of
$131,596,000, $96,690,000, and $90,507,000, 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 2000 fiscal year
amounted to $11,090,000 after allowance of $52,981,000 to dealers. During the
fiscal years ended 1999 and 1998, the Principal Underwriter retained $6,399,000
and $10,044,000, respectively, on sales of Class A shares, after an allowance of
$31,625,000 and $50,962,000 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
EuroPacific Growth Fund - Page 14
<PAGE>
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 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 2000 fiscal year, the fund paid or accrued $71,410,000 for
compensation to dealers or the Principal Underwriter under the Plan for Class A
shares and $8,000 under the Plan for Class B shares. As of March 31, 2000,
accrued and unpaid expenses under the Plans for Class A shares and Class B
shares were $7,502,000 and $8,000, respectively.
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.
EuroPacific Growth Fund - Page 15
<PAGE>
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 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
EuroPacific Growth Fund - Page 16
<PAGE>
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 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
EuroPacific Growth Fund - Page 17
<PAGE>
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 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
EuroPacific Growth Fund - Page 18
<PAGE>
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.
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 19
<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 20
<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).
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 21
<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 22
<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 23
<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 24
<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. The Statement will be considered
completed if the shareholder dies within the 13-month Statement period.
Commissions will not be adjusted or paid on the difference between the
Statement amount and the amount actually invested before the shareholder's
death.
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.
EuroPacific Growth Fund - Page 25
<PAGE>
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:
. 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 annuities and
variable life insurance policies. Direct purchases of the money market
funds are excluded.
CDSC WAIVERS FOR CLASS A SHARES - Any CDSC on Class A shares may be waived in
the following cases:
EuroPacific Growth Fund - Page 26
<PAGE>
(1) Exchanges (except if shares acquired by exchange are then redeemed within
12 months of the initial purchase).
(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
EuroPacific Growth Fund - Page 27
<PAGE>
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 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
EuroPacific Growth Fund - Page 28
<PAGE>
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
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. The Transfer Agent reserves the
right to require a signature guarantee on all redemptions.
- 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).
EuroPacific Growth Fund - Page 29
<PAGE>
- Checks must be mailed to an address of record that has been
used with the account for at least 10 days.
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 in 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
EuroPacific Growth Fund - Page 30
<PAGE>
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 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 "American
Funds Service Company Service Areas" -- "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
EuroPacific Growth Fund - Page 31
<PAGE>
telegraph. Exchange redemptions and purchases are processed simultaneously at
the share prices next determined after the exchange order is 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 "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 32
<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
2000, 1999 and 1998, amounted to $31,649,000, $24,925,000 and $22,795,000,
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
$20,324,000 for the 2000 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 33
<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. 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, 2000
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) . . . . . . . . . $44.61
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). . . . . . . . . . . . . . . . . . . . . . . . $47.33
</TABLE>
CLASS A SHARE INVESTMENT RESULTS AND RELATED STATISTICS
The fund's yield was 0.60% based on a 30-day (or one month) period ended March
31, 2000, 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:
YIELD = 2[( a-b/cd + 1)/6/ -1]
EuroPacific Growth Fund - Page 34
<PAGE>
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
ten-year average annual total return at the maximum offering price for the
periods ended March 31, 2000 were 45.46%, 21.47% and 16.00%, respectively. The
fund's one-year total return, five-year average annual total return and ten-year
average annual total return at net asset value for the periods ended on March
31, 2000 were 54.31%, 22.91% and 16.69%, 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 at the maximum offering price, the
fund assumes: (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.
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
EuroPacific Growth Fund - Page 35
<PAGE>
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 36
<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 37
<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 38
<PAGE>
"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 39
<TABLE>
Europacific Growth Fund
Investment Portfolio, March 31, 2000
Largest Percent
Industry Diversification Individual of Net
Percent of Net Assets Holdings Assets
11.66% Electronic Components Vodafone AirTouc 5.68
11.51% Diversified Telecommunication Samsung Electron 2.62
Services Rohm 2.16
7.84% Electrical & Electronics Ericsson 2.10
7.70% Wireless Telecommunication AstraZeneca 2.04
Services Telefonos de Mex 1.94
7.59% Broadcasting & Publishing Murata Manufactu 1.80
45.52% Other Industries Taiwan Semicondu 1.70
0.42% Bonds & Notes Nokia 1.70
7.76% Cash and Equivalents News Corp. 1.50
<S> <C> <C> <C>
Shares or Market Percent
Principal Value of Net
EQUITY SECURITIES
(common and preferred stocks
and convertible debentures) Amount (Millions) Assets
---------------------------------- -------- -------- --------
ELECTRONIC COMPONENTS - 11.66%
Samsung Electronics Co., Ltd.
(South Korea) 3,364,811 1,020.101 2.62
Rohm Co., Ltd. (Japan) 2,420,000 839.103 2.16
Murata Manufacturing Co., Ltd. (Japan) 2,884,000 698.871 1.80
Taiwan Semiconductor Manufacturing
Co. Ltd. (Taiwan)(1) 98,122,000 662.114 1.70
Hon Hai Precision Industry
Co. Ltd. (Taiwan)(1) 45,914,000 533.497 1.37
Samsung Electro-Mechanics Co.
(South Korea) 3,330,000 232.648 .60
EPCOS AG (Germany)(1) 1,207,000 159.503 .41
Hoya Corp. (Japan) 1,624,000 152.999 .39
Hirose Electric Co., Ltd. (Japan) 840,000 118.217 .31
Newbridge Networks Corp. (Canada)(1) 3,600,000 116.775 .30
DIVERSIFIED TELECOMMUNICATION SERVICES
- 11.51%
Telefonos de Mexico,
SA de CV, Class L (ADR) (Mexico) 10,294,000 689.698
Telefonos de Mexico, SA de CV, Class L 19,225,000 65.356 1.94
Telecom Italia SpA,
nonconvertible savings shares (Italy) 46,514,800 317.188
Telecom Italia SpA, ordinary shares 14,661,800 219.377 1.38
Deutsche Telekom AG (Germany) 5,186,300 418.171 1.08
Koninklijke PTT Nederland NV
(Netherlands) 3,235,784 370.746 .95
Nippon Telegraph and Telephone Corp.
(Japan) 20,076 317.831 .82
Telefonica, SA (Spain)(1) 11,438,885 289.182 .74
British Telecommunications PLC
(United Kingdom) 14,292,100 266.484 .69
COLT Telecom Group PLC
(United Kingdom)(1) 5,128,371 242.209
COLT Telecom Group PLC 2.00%
convertible debentures 2006 EUR16,000,000 16.221 .66
Tele Danmark AS (Denmark) 1,794,400 161.629
Tele Danmark AS, Class B (ADR) 43,400 2.015 .42
Korea Telecom Corp. (ADR)
(South Korea) 2,709,200 118.528
Korea Telecom Corp. 107,100 9.498 .32
Videsh Sanchar Nigam Ltd.
(GDR) (India)(2) 3,104,209 82.106
Videsh Sanchar Nigam Ltd. (GDR) 780,150 20.635
Videsh Sanchar Nigam Ltd. 450,000 19.013 .31
France Telecom, SA (France) 700,000 120.658 .31
Portugal Telecom, SA (Portugal)(1) 6,650,000 85.332 .22
Magyar Tavkozlesi Rt. (ADR) (Hungary) 1,905,500 85.033 .22
Teleglobe Inc. (Canada) 2,842,500 77.354 .20
Telefonica de Argentina SA,
Class B (ADR) (Argentina) 1,939,400 76.121 .20
BCE Inc. (Canada) 580,000 72.325 .19
Hellenic Telecommunications
Organization SA (Greece)(1) 2,466,000 70.245 .18
Telecom Corp. of New Zealand Ltd
. (New Zealand) 6,940,000 31.359
Telecom Corp. of New Zealand Ltd. (2) 3,553,000 16.054
Telecom Corp. of New Zealand
Ltd. (ADR) 25,000 .917 .12
Compania de Telecomunicaciones
de Chile SA (ADR) (Chile) 2,034,673 46.289 .12
Telefonica del Peru SA,
Class B (ADR) (Peru) 2,408,900 40.951 .11
Philippine Long Distance Telephone
Co. (ADR) (Philippines) 1,826,094 40.060 .10
Tiscali SpA (Italy)(1) 43,000 30.016 .08
Mahanagar Telephone Nigam Ltd.
(India) 3,425,000 18.482
Mahanagar Telephone Nigam Ltd.
(GDR) (2) 570,600 7.988 .07
Telecom Argentina STET-France Telecom
SA, Class B (ADR) (Argentina) 439,300 15.266 .04
Telstra Corp. Ltd. (Australia) 3,338,500 15.136 .04
ELECTRICAL & ELECTRONICS - 7.84%
Telefonaktiebolaget LM Ericsson,
Class B (Sweden) 6,250,000 550.453
Telefonaktiebolaget LM Ericsson,
Class B (ADR) 2,820,000 264.551 2.10
Nokia Corp., Class A (ADR) (Finland) 1,600,000 347.600
Nokia Corp., Class A 1,480,000 313.212 1.70
NEC Corp. (Japan) 14,950,000 439.962 1.13
Siemens AG (Germany) 1,725,000 248.605 .64
Matsushita Communication Industrial
Co., Ltd. (Japan) 1,079,000 198.068 .51
Toshiba Corp. (Japan) 17,100,000 173.724 .45
ECI Telecom Ltd. (Israel) 4,115,000 129.108 .33
Hitachi, Ltd. (Japan) 10,670,000 126.328 .33
Logica PLC (United Kingdom) 2,800,000 93.831 .24
Nortel Networks Corp. (Canada) 500,000 63.000 .16
Premier Farnell PLC (United Kingdom) 8,550,000 53.841 .14
Elektrim SA 3.75% convertible
debentures 2004 (Poland) EUR39,100,000 41.186 .11
WIRELESS TELECOMMUNICATION SERVICES
- 7.7%
Vodafone AirTouch PLC (United Kingdom) 392,101,014 2,179.523
Vodafone AirTouch PLC (ADR) 525,000 29.170 5.68
Telecom Italia Mobile SpA (Italy) 14,805,000 181.058
Telecom Italia Mobile SpA,
savings shares 20,705,000 97.807 .72
DDI Corp. (Japan) 29,344 239.118 .62
NTT Mobile Communications Network,
Inc. (Japan) 6285 216.102 .56
SK Telecom Co., Ltd. (ADR)
(South Korea) 684,235 26.685 .07
Telesp Celular Participacoes SA,
preferred nominative (Brazil) 940,818,476 21.432
Telesp Celular Participacoes SA,
ordinary nominative 222,115,950 3.663 .05
BROADCASTING & PUBLISHING - 7.59%
News Corp. Ltd. (ADR) (Australia) 3,958,200 222.649
News Corp. Ltd., preferred 15,495,555 183.353
News Corp. Ltd. 8,747,208 122.186
News Corp. Ltd., preferred (ADR) 1,181,600 56.421 1.50
CANAL + (France) 2,256,060 496.893 1.28
Mediaset SpA (Italy)(2) 9,174,544 178.874
Mediaset SpA 6,593,000 128.542 .79
Grupo Televisa, SA, ordinary
participation certificates (ADR)
(Mexico)(1) 3,994,400 271.619 .70
Nippon Television Network Corp.
(Japan) 331,980 235.056 .60
Fuji Television Network Inc. (Japan) 10,035 173.488 .47
KirchMedia GmbH & Co. KGaA
(Germany)(1),(2),(3) 3,430,000 144.009 .37
Pearson PLC (United Kingdom) 2,565,000 89.228 .23
Television Broadcasts Ltd.
(Hong Kong) 9,518,000 84.649 .22
AUDIOFINA (Luxembourg) 670,000 82.444 .21
Modern Times Group MTG AB,
Class B (ADR) (Sweden)(1) 211,822 57.615
Modern Times Group MTG AB,
Class A (1) 302,260 14.275 .18
Publishing & Broadcasting Ltd.
(Australia) 8,425,111 71.522 .18
SOFTBANK CORP. (Japan) 80,000 71.096 .18
United News & Media PLC
(United Kingdom) 3,400,000 44.755
United News & Media PLC 6.125%
convertible debentures 2003 GBP7,400,000 14.355 .15
Thomson Corp. (Canada) 1,660,000 52.093 .13
Arnoldo Mondadori Editore SpA
(Italy) 1,950,000 49.596 .13
Independent Newspapers, PLC
(Ireland) 4,652,737 45.668 .12
Daily Mail and General Trust PLC,
Class A (United Kingdom) 1,580,000 30.921 .08
Shaw Communications Inc.,
Class B (Canada) 1,000,000 26.869 .07
BANKING - 7.41%
Sakura Bank, Ltd. (Japan) 48,906,000 370.975
Sakura Finance (Bermuda) Trust,
convertible preference share units
(Japan - Incorporated in Bermuda) 1,614,000,000 23.044 1.01
ABN AMRO Holding NV (Netherlands) 15,477,594 345.189 .89
Bank of Nova Scotia (Canada) 12,098,200 242.131 .62
Lloyds TSB Group PLC (United Kingdom) 22,200,000 234.407 .60
Bank of Scotland (United Kingdom) 19,433,419 220.074 .57
Fuji Bank, Ltd. (Japan) 19,426,000 182.072 .47
Westpac Banking Corp. (Australia) 25,452,151 159.278 .41
DBS Group Holdings Ltd. (Singapore) 9,535,550 125.915 .32
Asahi Bank, Ltd. (Japan) 21,433,000 119.697 .31
Australia and New Zealand Banking
Group Ltd. (Australia) 14,893,887 93.991 .24
STB Cayman Capital, Ltd. 0.50%
convertible debentures 2007 (Japan-
Incorporated in Cayman Islands) Y5,925,000,000 92.938 .24
Bangkok Bank PCL (Thailand)(1) 49,400,000 84.992 .22
Royal Bank of Canada (Canada) 1,752,700 82.111 .21
Tokai Bank, Ltd. (Japan) 12,500,000 75.272 .19
Unibanco-Uniao de Bancos Brasileiros
SA, units (GDR) (Brazil) 1,800,000 57.150 .15
Hang Seng Bank Ltd. (Hong Kong) 6,095,500 53.232 .14
Shinhan Bank (South Korea) 4,450,000 47.722 .12
Banque Nationale de Paris (France) 580,000 45.821
Banque Nationale de Paris,
guaranteed value certificates,
expire 2002 (1) 117,000 .822 .12
ForeningsSparbanken AB,
Class A (Sweden) 2,860,000 38.994 .10
Toronto-Dominion Bank (Canada) 1,223,700 32.373 .08
Svenska Handelsbanken Group,
Class A (Sweden) 2,000,000 24.716 .06
Dai-Ichi Kangyo Bank, Ltd. (Japan) 2,500,000 23.213 .06
Commonwealth Bank of Australia
(Australia) 1,632,788 22.332 .06
HSBC Holdings PLC (United Kingdom) 1,600,000 18.699 .05
Sumitomo Bank, Ltd. (Japan) 1,200,000 17.832 .05
Barclays PLC (United Kingdom) 522,400 13.848 .04
Toyo Trust and Banking Co., Ltd.
(Japan) 2,800,000 10.606 .03
MBL International Finance (Bermuda)
Trust 3.00% convertible
debentures 2002 (Bermuda) $9,000,000 10.170 .03
Unidanmark A/S, Class A (Denmark) 122,500 7.866 .02
National Australia Bank Ltd.
(Australia) 18,829 .242 .00
HEALTH & PERSONAL CARE - 4.75%
AstraZeneca PLC (United Kingdom) 19,563,492 792.264 2.04
Elan Corp., PLC (ADR) (Ireland)(1) 10,874,800 516.553 1.31
Shionogi & Co., Ltd. (Japan) 7,954,000 140.756 .36
Fujisawa Pharmaceutical Co. Ltd.
(Japan) 3,621,000 126.608 .33
Novartis AG (Switzerland) 84,866 116.193 .30
Glaxo Wellcome PLC (United Kingdom) 2,000,000 57.261 .15
Nycomed Amersham PLC (United Kingdom) 4,700,000 37.492 .10
Aventis SA (France) 620,000 33.960 .09
Sanofi-Synthelabo SA (France)(1) 665,600 25.400 .07
BUSINESS SERVICES - 2.94%
Vivendi SA (France) 1,723,238 198.846 .51
Reuters Group PLC (United Kingdom) 7,142,460 144.339 .37
TNT Post Groep (Netherlands) 5,190,107 116.647 .32
Rentokil Initial PLC (United Kingdom) 40,022,900 103.262 .27
Brambles Industries Ltd. (Australia) 4,005,000 101.827 .26
Hikari Tsushin, Inc. (Japan) 107,000 81.892 .21
Securitas AB, Class B (Sweden) 3,108,000 75.375 .19
InterQ Inc. (Japan)(1) 184,000 72.378 .19
Adecco SA (Switzerland)(1) 92,000 63.700 .16
United Utilities PLC (United Kingdom) 4,978,414 52.011 .13
Intershop Communications AG
(Germany)(1) 80,000 40.372 .10
Thames Water PLC (United Kingdom) 1,869,931 21.121 .05
e.Biscom (Italy)(1) 80,700 21.006 .05
Hyder PLC (United Kingdom) 4,023,381 14.375 .04
Lernout & Hauspie Speech
Products NV (Belgium)(1) 130,000 14.365 .04
Ratin A/S (Denmark) 110,000 9.667 .02
Liberty Surf Group SA (France)(1) 83,300 4.666 .01
Lycos Europe NV (Netherlands)(1) 144,800 2.884 .01
World Online International NV
(Netherlands)(1) 100,000 2.236 .01
AUTOMOBILES - 2.51%
Volvo AB, Class B (Sweden) 10,894,200 294.544 .76
Suzuki Motor Corp. (Japan) 18,015,000 273.829 .70
Honda Motor Co., Ltd. (Japan) 6,010,000 247.498 .64
DaimlerChrysler AG
(New York registered) (Germany) 1,000,000 65.438 .17
Mitsubishi Motors Corp. (Japan)(1) 12,856,000 48.697 .13
Bayerische Motoren Werke AG (Germany) 1,455,600 45.928 .11
Nissan Motor Co., Ltd. (Japan)(1) 150,000 .612 .00
ENERGY SOURCES - 2.51%
TOTAL FINA SA, Class B (France) 2,133,378 266.114
TOTAL FINA SA, Class B (ADR) 828,807 61.021 .84
Broken Hill Proprietary Co. Ltd.
(Australia) 20,032,290 216.880 .56
Norsk Hydro AS (Norway) 2,370,000 89.630
Norsk Hydro AS (ADR) 500,000 19.031 .28
Royal Dutch Petroleum Co. (Netherlands) 1,000,000 58.423
Royal Dutch Petroleum Co.
(New York Registered Shares) 280,000 16.118
Shell Transport and Trading Co., PLC
(New York Registered Shares)
(United Kingdom) 675,000 33.117 .28
Sasol Ltd. (South Africa) 13,213,700 82.624 .21
Enterprise Oil PLC (United Kingdom) 10,800,000 77.768 .20
Suncor Energy Inc. (Canada) 750,000 32.475 .08
Petro-Canada (Canada) 1,400,000 23.293 .06
MERCHANDISING - 2.34%
Dixons Group PLC (United Kingdom) (1) 61,909,181 286.608 .74
EM.TV & Merchandising AG (Germany) (1) 1,658,000 136.225
EM.TV & Merchandising AG 4.00%
convertible debentures 2005 EUR31,151,000 31.247 .43
Ito-Yokado Co., Ltd. (Japan) 2,150,000 153.273 .39
Kingfisher PLC (United Kingdom) 10,379,940 84.362 .22
Safeway PLC (United Kingdom) 19,615,000 59.584 .15
Tesco PLC (United Kingdom) 17,744,600 59.082 .15
Wal-Mart de Mexico, SA de CV,
Class V (formerly Cifra, SA de CV)
(Mexico)(1) 16,787,918 40.674
Wal-Mart de Mexico, SA de CV,
Class C (1) 6,037,600 14.074 .14
Loblaw Companies Ltd. (Canada) 1,560,100 38.479 .10
Coles Myer Ltd. (Australia) 1,380,100 5.443 .02
MULTI-INDUSTRY - 2.16%
Thyssen Krupp AG (Germany)(1) 8,405,000 207.252 .53
Orkla AS, Class A (Norway) 11,023,999 168.331 .43
Invensys PLC (United Kingdom) 20,600,000 91.507 .24
Lend Lease Corp. Ltd. (Australia) 6,839,640 88.364 .23
Lagardere Groupe SCA (France) 920,000 74.752 .19
Hutchison Whampoa Ltd. (Hong Kong) 3,235,000 58.373 .15
Preussag AG (Germany) 1,000,096 46.065 .12
Anglo American PLC (United Kingdom) 700,000 32.420 .08
PT Astra International (Indonesia)(1) 54,000,000 25.910 .07
Ayala Corp. (Philippines) 74,866,500 16.596 .04
PT Multimedia (Portugal)(1) 180,000 16.030 .04
TI Group PLC (United Kingdom) 3,197,300 15.758 .04
FOOD & HOUSEHOLD PRODUCTS - 1.59%
Nestle SA (Switzerland) 141,457 253.803 .65
Groupe Danone (France) 769,400 170.196 .44
Reckitt Benckiser PLC
(formerly Reckitt & Colman PLC)
(United Kingdom) 8,538,919 81.207 .21
Seven-Eleven Japan Co., Ltd. (Japan) 700,000 80.225 .21
Uni-Charm Corp. (Japan) 460,000 30.157 .08
APPLIANCES & HOUSEHOLD DURABLES - 1.51%
Sony Corp. (Japan) (1) 3,633,100 513.462 1.32
Koninklijke Philips Electronics
NV (Netherlands) 440,000 73.988 .19
DATA PROCESSING & REPRODUCTION - 1.44%
Fujitsu Ltd. (Japan) 10,346,000 316.530 .81
Acer Inc. (Taiwan)(1) 54,193,750 152.520
Acer Inc. SIZeS 0% convertible
debentures 2005 (2) $6,425,000 6.666 .41
Compal Electronics Inc. (Taiwan) 13,613,600 56.686 .15
Getronics NV (Netherlands) 350,000 26.779 .07
BEVERAGES & TOBACCO - 1.17%
Foster's Brewing Group Ltd. (Australia) 61,703,800 153.137 .38
Ito En, Ltd. (Japan) 812,700 97.878 .25
South African Breweries PLC
(United Kingdom) 7,947,287 60.899 .16
Heineken NV (Netherlands) 630,000 33.694 .09
LVMH Moet Hennessy Louis
Vuitton (France) 70,000 29.306 .08
Panamerican Beverages, Inc.,
Class A (Mexico - Incorporated in Panama) 1,269,100 22.368 .06
Coca-Cola Beverages PLC
(United Kingdom) (1) 9,567,371 17.778 .05
Lion Nathan Ltd. (New Zealand) 8,000,000 13.690 .04
Coca-Cola West Japan Co. Ltd. (Japan) 500,000 13.112 .03
Coca-Cola Amatil Ltd. (Australia) 5,201,157 12.939 .03
I.T.C. Ltd. (India) 372 .006 .00
INSURANCE - 1.14%
ING Groep NV (Netherlands) 3,667,737 198.792 .50
PartnerRe Holdings Ltd.
(Singapore - Incorporated in Bermuda) 2,031,900 74.799 .19
Union des Assurances Federales (France) 493,960 59.600 .15
Royal & Sun Alliance Insurance Group
PLC (United Kingdom) 7,048,439 44.295 .11
Swiss Life-Mannesmann 1.50% convertible
debentures 2003 (Switzerland)(2) $8,000,000 24.250
Swiss Life-Glaxo Wellcome 2.00%
convertible debentures 2003(2) $15,000,000 14.568 .10
Allied Zurich PLC (United Kingdom) 1,950,000 21.126 .05
AEGON NV (Netherlands) 195,000 15.592 .04
RECREATION & OTHER CONSUMER
PRODUCTS - 1.12%
Nintendo Co., Ltd. (Japan) 1,195,700 209.619 .54
EMI Group PLC (United Kingdom) 12,351,900 131.465 .34
Fuji Photo Film Co., Ltd. (Japan) 1,320,000 57.949 .15
Square Co., Ltd. (Japan) 318,450 32.785 .09
MACHINERY & ENGINEERING - 0.85%
GKN PLC (United Kingdom) 12,400,000 154.565 .40
Mitsubishi Heavy Industries, Ltd. (Japan) 21,000,000 65.880 .17
Metso Oyj (Finland) 3,400,000 45.907 .12
Smiths Industries PLC (United Kingdom) 3,200,000 39.020 .11
Kvaerner ASA, Class A (Norway)(1) 1,294,720 19.310 .05
IT CONSULTING & SERVICES - 0.77%
CMG PLC (United Kingdom) 1,121,109 96.371 .25
Sema Group PLC (United Kingdom) 4,050,000 80.876 .21
ALTRAN TECHNOLOGIES (France) 300,000 73.256 .19
Dimension Data Holdings Ltd.
(South Africa)(1) 5,325,237 47.580 .12
AEROSPACE & MILITARY TECHNOLOGY - 0.65%
Bombardier Inc., Class B (Canada) 8,400,000 210.940 .54
SAGEM SA (France)(1) 33,000 43.293 .11
LEISURE & TOURISM - 0.64%
Granada Group PLC (United Kingdom) 13,697,532 146.925 .38
Seagram Co. Ltd. (Canada) 1,200,000 71.400 .18
Thomson Travel Group PLC (United Kingdom) 19,300,000 29.860 .08
BUILDING MATERIALS & COMPONENTS - 0.61%
TOSTEM CORP. (Japan) 6,990,000 112.698 .29
Cemex, SA de CV, ordinary participation
certificates, Units (ADR) (Mexico) 4,199,314 95.009
Cemex, SA de CV, warrants (ADR),
expire 2002(1) 262,457 .919 .25
Holderbank Financiere Glaris
Ltd. (Switzerland) 23,966 28.571 .07
FOREST PRODUCTS & PAPER - 0.59%
UPM-Kymmene Corp. (Finland) 3,680,800 103.980 .27
Abitibi-Consolidated Inc. (Canada) 9,500,000 91.302 .22
Stora Enso Oyj (Finland) 2,394,843 25.685 .07
AssiDoman AB (Sweden) 600,000 9.956 .03
OTHER INDUSTRIES - 4.50%
Pechiney, Class A (France) 3,078,675 151.092 .39
Deutsche Lufthansa AG (Germany) 5,400,000 123.329 .32
ORIX Corp. (Japan) 772,400 101.492
ORIX Corp. 0.375% convertible
debentures 2005 Y600,000,000 8.195 .28
BOC Group PLC (United Kingdom) 5,005,000 97.951 .25
Buhrmann NV (Netherlands) 3,844,000 97.547 .25
ADVANTEST CORP. (Japan) 375,200 79.406 .20
NGK Spark Plug Co., Ltd. (Japan) 6,412,000 72.864 .19
Sun Hung Kai Properties Ltd. (Hong Kong) 8,150,000 70.651 .18
Minebea Co., Ltd. (Japan) 4,904,000 65.015 .17
De Beers Consolidated Mines Ltd.
(South Africa) 2,638,800 61.875 .16
Nichiei Co., Ltd. (Japan) 3,000,000 56.672 .15
British Airways PLC (United Kingdom) 10,000,000 52.555 .13
L'Air Liquide (France) 361,095 50.174 .13
Hongkong Land Holdings Ltd.
(Hong Kong - Incorporated in Bermuda) 34,363,300 47.765 .12
Mitsui & Co., Ltd. (Japan) 5,600,000 45.144 .11
Manila Electric Co., Class A (GDR)
(Philippines) (2),(3) 3,110,000 27.558
Manila Electric Co., Class B 9,540,381 16.733 .11
Cia. Energetica de Minas Gerais
- CEMIG, preferred nominative
(ADR) (Brazil) 2,393,418 41.286
Cia. Energetica de Minas Gerais
- CEMIG, ordinary nominative 163,059,152 2.050
Cia. Energetica de Minas Gerais
- CEMIG, preferred nominative (ADR) (2) 26,066 .450 .11
PowerGen PLC (United Kingdom) 7,261,943 42.625 .11
Tokyo Electron Ltd. (Japan) 275,000 41.400 .11
Stolt-Nielsen SA, Class B (ADR)
(Incorporated in Luxembourg) 1,997,900 36.961 .10
National Power PLC (United Kingdom) 7,135,400 35.765 .09
Corus Group PLC (United Kingdom) 19,940,200 32.441 .08
Nikon Corp. (Japan) 832,000 31.838 .08
Bergesen d.y. AS, Class B (Norway) 1,130,000 19.662
Bergesen d.y. AS, Class A 542,800 9.830 .08
Bayer AG (Germany) 600,000 26.947 .07
Cheung Kong (Holdings) Ltd. (Hong Kong) 1,800,000 26.931 .07
Bouygues SA (France) 30,000 23.787 .06
Security Capital Global Realty
(Luxembourg)(1),(2),(3) 1,125,000 21.611 .06
Peninsular and Oriental Steam
Navigation Co. (United Kingdom) 1,985,628 20.634 .05
Scottish Power PLC (United Kingdom) 2,350,000 19.032 .05
Ayala Land, Inc. (Philippines) 105,880,000 17.540 .05
Bridgestone Corp. (Japan) 775,000 17.049 .04
Imperial Chemical Industries PLC
(ADR) (United Kingdom) 430,000 13.867 .04
Valeo (France) 240,000 11.824 .03
Cie. Generale des Etablissements
Michelin, Class B (France) 324,303 10.416 .03
Morgan Crucible Co. PLC (United Kingdom) 2,550,836 10.090 .03
Shohkoh Fund & Co., Ltd. (Japan) 60,000 8.683 .02
MISCELLANEOUS - 4.32%
Other equity securities in
initial period of acquisition 1,679.656 4.32
-------- --------
TOTAL EQUITY SECURITIES (cost: $20,485.071) 35,687.695 91.82
-------- --------
Shares/Principal Market Percent
Amount Value of Net
BONDS & NOTES (Millions) (Millions) Assets
------------------------------------ -------- -------- --------
BROADCASTING & PUBLISHING - 0.05%
Grupo Televisa, SA 0%/13.25% 2008(4) $20.000 19.750 .05
NON U.S. GOVERNMENT OBLIGATIONS
- 0.37%
Brazil (Federal Republic of),
Bearer 8.00% 2014 $161.951 121.868 .32
Argentina (Republic of) 11.75% 2007 ARP14.00 13.202
Argentina (Republic of) 11.375% 2017 $7.500 7.313 .05
-------- --------
TOTAL BONDS & NOTES (cost: $136.338) 162.133 .42
-------- --------
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (Millions) (Millions) Assets
------------------------------------- -------- -------- --------
Corporate Short-Term Notes - 5.44%
BMW US Capital Corp. 5.99%-6.01%
due 4/20-5/26/2000 107.800 107.037 .28
Deutsche Bank Financial Inc.
5.94%-6.08% due 4/17-6/20/2000 106.300 105.489 .27
General Motors Acceptance Corp.
5.84%-5.92% due 4/19-5/19/2000 101.500 100.868 .26
Ciesco LP 5.85%-5.87% due 4/17-4/24/2000 100.000 99.667 .26
E.I. du Pont de Nemours and Co.
5.80%-6.00% due 4/6-5/23/2000 100.300 99.556 .26
Societe Generale North America Inc.
6.00%-6.02% due 5/19-5/24/2000 96.800 95.969 .25
Procter & Gamble Co.
5.83%-5.98% due 4/20-4/27/2000 94.763 94.395 .24
General Electric Capital Corp.
5.91%-6.04% due 4/28-5/9/2000 93.400 92.926 .24
International Lease Finance
Corp. 5.85%-6.01% due 5/3-5/26/2000 91.000 90.362 .23
American Honda Finance Corp.
5.87%-6.04% due 5/5-5/23/2000 86.400 85.751 .22
Archer Daniels Midland Co.
5.86%-6.03% due 5/2-5/22/2000 86.000 85.425 .22
DaimlerChrysler NA Holdings
5.86%-6.03% due 5/10-5/16/2000 85.300 84.707 .22
Coca-Cola Co. (The)
5.86%-5.96% due 4/25-5/18/2000 83.300 82.732 .21
Toronto-Dominion Holdings USA Inc.
5.79%-5.82% due 4/3-4/4/2000 69.500 69.459 .18
Dresdner U.S. Finance Inc.
6.01%-6.08% due 5/19-6/20/2000 66.000 65.372 .17
Ford Motor Credit Co.
5.82%-5.86% due 4/7-5/4/2000 65.500 65.271 .17
Equilon Enterprises LLC
5.82%-5.86% due 4/11-5/4/2000 65.000 64.786 .17
H.J Heinz Co.
5.82%-5.97% due 4/18-4/28/2000 58.700 58.474 .15
Svenska Handelsbanken
6.01% due 4/19/2000 50.000 49.841 .13
KfW International Finance Inc.
5.89%-5.90% due 5/17-5/31/2000 50.300 49.809 .13
Bell Atlantic Financial Services
Inc. 5.85% due 4/27/2000 50.000 49.781 .13
FCE Bank 5.87%-6.06% due 4/25-6/8/2000 49.800 49.457 .13
Spintab AB 5.98% due 6/9/2000 48.000 47.432 .12
CBA (Delaware) Finance Inc.
5.89%-5.90% due 5/10-5/15/2000 45.000 44.682 .11
Motiva Enterprises LLC
5.82%-5.85% due 4/13-4/26/2000 43.200 43.060 .11
Chevron U.K. Investment PLC
5.83%-5.93% due 4/7-5/5/2000 40.000 39.862 .10
Halifax PLC 5.90% due 5/24/2000 40.000 39.639 .10
Eksportfinans ASA 5.82% due 4/6/2000 35.000 34.966 .09
Den Danske Corp. Inc. 5.83% due 4/5/2000 25.000 24.980 .06
Abbey National North America
5.82% due 4/10/2000 25.000 24.960 .06
Canadian Imperial Holdings Inc.
5.83% due 4/11/2000 25.000 24.955 .06
Bayerische Hypotheken-und
Wechsel-Bank AG 5.82% due 4/12/2000 25.000 24.951 .06
Westpac Trust Securities NZ LTD.
5.81% due 4/14/2000 20.000 19.955 .05
Federal Agency Discount Notes - 1.42%
Freddie Mac
5.70%-6.04% due 4/6-6/29/2000 327.100 324.184 .83
Fannie Mae
5.71%-6.05% due 4/6-6/29/2000 115.382 114.345 .30
Federal Home Loan Banks
5.63%-6.00% due 5/17-5/26/2000 113.863 112.860 .29
Certificates of Deposit - 0.21%
Canadian Imperial Bank of Commerce
5.88%-5.91% due 4/5-4/10/2000 55.000 55.000 .14
Morgan Guaranty Trust Co. of
New York 6.07% due 4/19/2000 25.000 25.000 .07
Non-U.S. Currency - 0.02%
New Taiwanese Dollar NT$202.528 6.666 .02
-------- --------
TOTAL SHORT-TERM SECURITIES
(cost: $2,755.419 million) 2,754.631 7.09
-------- --------
TOTAL INVESTMENT SECURITIES
(cost: $23,376.828 million) 38,604.459 99.33
Excess of cash and receivables
over payables 262.739 .67
-------- --------
NET ASSETS $38,867.198 100.00
-------- --------
(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
</TABLE>
<TABLE>
Companies Added to the Portfolio
Since September 30, 1999
<S> <C>
AUDIOFINA LVMH Moet Hennessy Louis Vuitton
Aventis Lycos Europe
BCE Newbridge Networks
Bouygues Nikon
British Airways Peninsular and Oriental Steam Navigation
CMG PowerGen
Compal Electronics PT Multimedia
Dai-Ichi Kangyo Bank SAGEM
DaimlerChrysler Samsung Electro-Mechanics
DBS Group Holdings Sema Group
e.Biscom Seven-Eleven Japan
Enterprise Oil Shaw Communications
EPCOS Shinhan Bank
Getronics Shionogi
Heineken Shohkoh Fund
InterQ Smiths Industries
Intershop Communications Suncor Energy
KirchMedia Svenska Handelsbanken
Korea Telecom Taiwan Semiconductor
Lernout & Hauspie Thomson Travel
Liberty Surf Tiscali
Lloyds TSB World Online
Logica
Companies Eliminated from
the Portfolio Since
September 30, 1999
Amway Japan Mitsubishi Estate
Asahi Breweries Orange
Bajaj Auto Pathe
Cadbury Schweppes Perusahan Perseroan (Persero)
Carrefour !PT Indonesian Satellite
Cia. Paranaese de Energia - COPEL Peugeot
Elf Aquitaine Porsche
George Weston Qantas Airways
H & M Hennes & Mauritz Raisio
Keyence Shiseido
Koninklijke Ahold SmithKline Beecham
LIGHT-Servicos de Electricidade Societe Europeenne des Satellites
Sony Music Entertainment
Swedish Match
Swisscom
</TABLE>
<TABLE>
EuroPacific Growth Fund
Financial Statements
<S> <C> <C>
Statement of Assets and Liabilities (dollars in millions)
at March 31, 2000
ASSETS:
Investment securities at market
(cost: $23,376.828) $38,604.459
Receivables for--
Sales of investments $319.724
Sales of fund's shares 129.724
Dividends and accrued interest 88.045 537.493
---------- ----------
39,141.952
LIABILITIES:
Payables for--
Purchases of investments 197.103
Repurchases of fund's shares 42.338
Forward currency contracts - net 4.385
Management services 14.201
Accrued expenses and other 16.727 274.754
---------- ----------
NET ASSETS AT MARCH 31, 2000-- $38,867.198
==========
Class A shares, unlimited shares authorized:
Net assets $38,837.311
Shares of beneficial interest outstanding 870,681,797
Net asset value per share $44.61
Class B shares, unlimited shares authorized:
Net assets $29.887
Shares of beneficial interest outstanding 670,255
Net asset value per share $44.59
Statement of Operations
for the year ended March 31, 2000 (dollars in millions)
INVESTMENT INCOME:
Income:
Dividends $346.378
Interest 159.523
---------- $505.901
Expenses:
Management services fee 131.596
Distribution expenses - Class A 71.410
Distribution expenses - Class B .008
Transfer agent fee - Class A 20.323
Transfer agent fee- Class B .001
Reports to shareholders .677
Registration statement and prospectus 1.268
Postage, stationery and supplies 3.081
Directors' fees .319
Auditing and legal fees .102
Custodian fee 10.942
Taxes other than federal income tax .452
Other expenses .437 240.616
---------- ----------
Net investment income 265.285
----------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 3,084.054
Net change in unrealized appreciation on:
Investments 9,243.158
Open forward currency contracts (4.385)
----------
Net unrealized appreciation 9,238.773
----------
Net realized gain and
unrealized appreciation
on investments 12,322.827
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 12,588.112
==========
Statement of Changes in Net Assets Year ended March 31,
(dollars in millions) 2000 1999
---------- ----------
OPERATIONS:
Net investment income $ 265.285 $ 299.948
Net realized gain on investments 3,084.054 769.649
Net increase in urealized appreciation
on investments 9,238.773 523.918
---------- ----------
Net increase in net assets
resulting from operations 12,588.112 1,593.515
---------- ----------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income, Class A (221.364) (258.117)
Distributions from net realized gains on
investments, Class A (1,078.276) (901.166)
---------- ----------
Total Dividends and Distributions (1,299.640) (1,159.283)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 10,707.128 4,252.412
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments 1,245.354 1,110.693
Cost of shares repurchased (6,456.731) (5,030.545)
---------- ----------
Net increase in net assets resulting from
capital share transactions 5,495.751 332.560
---------- ----------
TOTAL INCREASE IN NET ASSETS 16,784.223 766.792
NET ASSETS:
Beginning of year 22,082.975 21,316.183
---------- ----------
End of year (including
undistributed net investment
income: $61.015 and $65.361
respectively) $38,867.198 $22,082.975
========== ==========
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. The fund offers Class
A and Class B shares. Class A shares are sold with an initial sales charge of
up to 5.75%. Class B shares are sold with a contingent deferred sales charge,
which declines from 5% to zero depending on the length of time the shares are
held, and include a higher distribution fee than Class A shares. Class B shares
are automatically converted to Class A shares eight years after the date of
purchase. Holders of both classes of shares have equal pro rata rights to
assets and identical voting, dividend, liquidation and other rights, except
that each class bears different distribution and transfer agent expenses, and
each class shall have exclusive rights to vote on matters affecting only their
class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with 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. 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 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 manage its exposure to fluctuations in foreign exchange
rates arising from investments denominated in non-U.S. currencies. The fund's
use of forward currency contracts involves market risk in excess of the amount
recognized in the statement of assets and liabilities. The contracts are
recorded in the statement of assets and liabilities at their net unrealized
value. The fund records realized gains or losses at the time the forward
contract is closed or offset by a matching contract. The face or contract
amount in U.S. dollars reflects the total exposure the fund has in that
particular contract. Risks may arise upon entering these contracts from the
potential inability of counterparties to meet the terms of their contracts and
from possible movements in non-U.S. exchange rates and securities values
underlying these instruments. Purchases and sales of forward currency exchange
contracts having the same settlement date and broker are offset and presented
net in the statement of assets and liabilities.
COMMON EXPENSES - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are prorated between the classes based
on the relative net assets of each class. Distribution and transfer agent fees,
and any other class-specific expenses, if any, are calculated daily at the
class level based on the relative daily net assets of each class and the
specific expense rate applicable to each class.
2. NON-U.S. INVESTMENTS
INVESTMENT RISK - Investments in securities of non-U.S. issuers in certain
countries involve special investment risks. These risks may include, but are
not limited to, investment and repatriation restrictions, revaluation of
currencies, adverse political, social, and economic developments, government
involvement in the private sector, limited and less reliable investor
information, lack of liquidity, certain local tax law considerations, and
limited regulation of the securities markets.
TAXATION - Dividend and interest income is recorded net of non-U.S. taxes paid.
For the year ended March 31, 2000, such non-U.S. taxes were $55,193,000.
Net realized gain and net unrealized gain of the fund derived in certain
countries are subject to certain non-U.S. taxes. The fund provides for such
non-U.S. taxes on investment income, net realized gain and net unrealized gain.
CURRENCY GAINS AND LOSSES - Net realized currency losses on dividends,
interest, sales of non-U.S. bonds and notes, forward contracts, and other
receivables and payables, on a book basis, were $2,493,000 for the year ended
March 31, 2000.
3. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income and net capital gains for the fiscal year. As a regulated
investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.
As of March 31, 2000, net unrealized appreciation on investments, excluding
forward currency contracts, for federal income tax purposes aggregated
$15,174,965,000; $16,066,110,000 related to appreciated securities and
$891,145,000 related to depreciated securities. During the year ended March
31, 2000, the fund realized, on a tax basis, a net capital gain of
$3,085,544,000 on securities transactions. Net losses related to non-U.S.
currency and other transactions of $1,490,000 were treated as an adjustment to
ordinary income for federal income tax purposes. The cost of portfolio
securities, excluding forward currency contracts, for federal income tax
purposes was $23,429,494,000 at March 31, 2000.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $131,596,000 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 in effect through December 31,
1999, provided 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 billion; 0.53% of such assets in
excess of $1 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 billion; 0.47% of such assets in
excess of $4 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 ; and 0.445% of such
assets in excess of $17 billion. The Board of Trustees approved an amended
agreement effective January 1, 2000, reducing the fees to 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 billion; 0.53% of such assets in
excess of $1 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 billion; 0.47% of such assets in
excess of $4 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 assets in
excess of $21 billion but not exceeding $27 billion; 0.425% of such assets in
excess of $27 billion but not exceeding $34 billion; 0.42% of such assets in
excess of $34 billion but not exceeding $44 billion; and 0.415% of such assets
in excess of $44 billion.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution for Class A shares,
the fund may expend up to 0.25% of Class A average daily 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. Pursuant to a Plan of Distribution
for Class B shares, the fund may expend up to 1.00% of Class B average daily
net assets annually to compensate dealers for their selling and servicing
efforts. During the year ended March 31, 2000, distribution expenses under
the Plan of Distribution for Class A shares were limited to $71,410,000. Had
no limitation been in effect, the fund would have paid $85,656,000 for Class A
shares. During the year ended March 31, 2000, distribution expenses under the
Plan of Distribution for Class B shares were $8,000. As of March 31, 2000,
accrued and unpaid distribution expenses for Class A and Class B shares were
$7,502,000 and $8,000, respectively.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $11,090,000 (after allowances to dealers) as its
portion of the sales charges paid by purchasers of the fund's Class A 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 $20,324,000.
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, 2000, aggregate deferred amounts and earnings thereon since the
deferred compensation plan's adoption (1993), net of any payments to Trustees,
were $1,165,000.
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 $10,915,769,000 and $7,573,962,000 respectively,
during the year ended March 31, 2000.
As of March 31, 2000, net assets consist of the following:
<TABLE>
<CAPTION>
<S> <C>
Capital paid in on shares of $21,577,119,000
beneficial interest
Undistributed net investment income 61,015,000
Accumulated net realized gain 2,007,195,000
Net unrealized appreciation 15,221,869,000
Net Assets $38,867,198,000
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C> <C> <C>
Year ended Year ended
March 31, 2000 March 31, 1999
Amount Shares Amount Shares
Class A Shares:
Sold $ 10,677.481 279,693,484 $ 4,252.412 149,373,115
Reinvestment of
dividends and distributions 1,245.354 33,084,650 1,110.693 39,600,216
Repurchased (6,456.700) (173,087,213) (5,030.545) (179,052,856)
Net increase in Class A 5,466.135 139,690,921 332.560 9,920,475
Class B Shares: (1) - -
Sold 29.647 670,954 - -
Reinvestment of
dividends and distributions - -
Repurchased (0.031) (699) - -
Net increase in Class B 29.616 670,255 - -
Total net increase in fund $ 5,495.751 140,361,176 $ 332.560 9,920,475
(1) Class B shares offered
for sale commencing
March 15, 2000.
</TABLE>
The fund reclassified $1,488,000 from undistributed net investment income to
undistributed net realized gains; and reclassified $46,779,000 and $137,243,000
from undistributed net investment income and undistributed net realized gains,
respectively, to paid-in capital for the year ended March 31, 2000.
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 $10,942,000 includes $131,000 that was paid by these
credits rather than in cash.
At March 31, 2000, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Non-U.S. Currency Contract Amounts U.S. Valuation at 3/31/00
Sale Contracts
Non-U.S. U.S. Amount Unrealized Depreciation
Japanese Yen expiring 10/18/00 Y30,185,100,000 $300,000,000 $304,385,000 $(4,385,000)
</TABLE>
<TABLE>
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C> <C>
Net
gains on
Net securities
asset (both Total
value, Net realized from
Year beginning investment and investment
ended of year income unrealized) operations
Class A:
2000 $30.21 0.34 (3) 15.74 (3) 16.08
1999 29.56 .42 1.85 2.27
1998 26.70 .45 4.79 5.24
1997 24.28 .46 3.28 3.74
1996 20.89 .46 3.63 4.09
Class B(4):
2000 43.09 0.03 (3) 1.47 (3) 1.50
Dividends
(from net
realized Distri- Net
Dividends non- butions asset
(from net U.S. (from Total value,
investment currency capital Distri- end of
income) gains)(1) gains) butions year
Class A:
(.29) - (1.39) (1.68) $44.61
(.36) - (1.26) (1.62) 30.21
(.43) (.017) (1.93) (2.38) 29.56
(.41) (.03) (.88) (1.32) 26.70
(.49) - (.21) (0.70) 24.28
Class B(4):
- - - - 44.59
Ratio Ratio
Net of of
assets, expenses income
end of to to
Total year average average Portfolio
return (in net net turnover
(2) millions) assets assets rate
Class A:
54.31% $38,837 .84% 0.93 28.94%
8.18 22,083 .84 1.45 31.73
20.97 21,316 .86 1.64 30.51
15.88 16,737 .90 1.77 25.82
0.20 12,335 .01 0.02 0.2177
Class B(4):
3.48 (5) 30 .07(5) .06(5) 28.94(6)
(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%.
(3) Based on average
shares outstanding.
(4) Class B shares offered
for sale commencing
March 15, 2000.
(5) Based on operations
for the period shown
and, accordingly, not
representative of a
full year.
(6) Represents portfolio
turnover for the year
ended March 31, 2000.
</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, 2000, 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 accounting principles generally accepted in the United States.
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 auditing standards generally accepted in the United States, which require
that we plan and perform the audits 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 owned at March 31, 2000 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICEWATERHOUSE COOPERS LLP
Los Angeles, California
April 28, 2000
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 certain distributions received by
shareholders during such fiscal year.
During the fiscal year ended March 31, 2000, the fund paid a long-term capital
gains distribution of $1,078,276,000 to Class A shareholders. 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, 2000 was $55,193,000.
Foreign source income earned by the fund for the fiscal year ended March 31,
2000 was $387,906,000. Shareholders are entitled to a foreign tax credit or an
itemized deduction, at their discretion. Generally, it is more advantageous to
claim a credit rather than to take a deduction.
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 OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2001 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2000 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
PART C
OTHER INFORMATION
EUROPACIFIC GROWTH FUND
ITEM 23. EXHIBITS
(a) Previously filed (see Post-Effective Amendment No. 17 filed 5/30/97)
(b) Previously filed (see Post-Effective Amendment No. 16 filed 5/6/97)
(c) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(d) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(e) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(f) None
(g) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(h) None
(i) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(j) Consent of Independent Accountants
(k) None
(l) None
(m) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(n) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
(o) None
(p) Previously filed (see Post-Effective Amendment No. 21 filed 3/13/00)
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
None
ITEM 25. INDEMNIFICATION
Registrant is a joint-insured under Investment Advisor/Mutual Fund Errors and
Omissions Policies written by American International Surplus Lines Insurance
Company, Chubb Custom Insurance Company and ICI Mutual Insurance Company.
These policies insure its officers and trustees against certain liabilities.
However, in no event will Registrant maintain insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify
the individual.
ITEM 25. INDEMNIFICATION (CONTINUED)
Article VI of the Trust's By-Laws states:
(a) The Trust shall indemnify any Trustee or officer of the Trust who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than action by or in the right of the Trust) by reason
of the fact that such person is or was such Trustee or officer or an employee
or agent of the Trust, or is or was serving at the request of the Trust as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe such
person's conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the person reasonably believed
to be opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that such
person's conduct was unlawful.
(b) The Trust shall indemnify any Trustee or officer of the Trust who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Trust to procure a judgment
in its favor by reason of the fact that such person is or was such Trustee or
officer or an employee or agent of the Trust, or is or was serving at the
request of the Trust as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees), actually and reasonably incurred by such
person in connection with the defense or settlement of such action or suit if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, except that no
indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable for negligence or
misconduct in the performance of such person's duty to the Trust unless and
only to the extent that the court in which such action or suit was brought, or
any other court having jurisdiction in the premises, shall determine upon
application that, despite the adjudication of liability but in view of all
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.
(c) To the extent that a Trustee or officer of the Trust has been successful on
the merits in defense of any action, suit or proceeding referred to in
subparagraphs (a) or (b) above or in defense of any claim, issue or matter
therein, such person shall be indemnified against expenses (including
attorneys' fees) actually and reasonably incurred by such person in connection
therewith, without the necessity for the determination as to the standard of
conduct as provided in subparagraph (d).
ITEM 25. INDEMNIFICATION (CONTINUED)
(d) Any indemnification under subparagraph (a) or (b) (unless ordered by a
court) shall be made by the Trust only as authorized in the specific case upon
a determination that indemnification of the Trustee or officer is proper under
the standard of conduct set forth in subparagraph (a) or (b). Such
determination shall be made (i) by the Board by a majority vote of a quorum
consisting of Trustees who were not parties to such action, suit or proceeding,
and are disinterested Trustees or (ii) if such a quorum of disinterested
Trustees so directs, by independent legal counsel in a written opinion.
(e) Expenses incurred in defending a civil or criminal action, suit or
proceeding may be paid by the Trust in advance of the final disposition of such
action, suit or proceeding, as authorized in the particular case, upon receipt
of an undertaking and security by or on behalf of the Trustee or officer to
repay such amount unless it shall ultimately be determined that such person is
entitled to be indemnified by the Trust as authorized herein. Such
determination must be made by disinterested Trustees or independent legal
counsel.
(f) Agents and employees of the Trust who are not Trustees or officers of the
Trust may be indemnified under the same standards and procedures set forth
above, in the discretion of the Board.
(g) Any indemnification pursuant to this Article shall not be deemed exclusive
of any other rights to which those indemnified may be entitled and shall
continue as to a person who has ceased to be Trustee or officer and shall inure
to the benefit of the heirs, executors and administrators of such person.
(h) Nothing in the Declaration of Trust or in these By-Laws shall be deemed to
protect any Trustee, officer, distributor, investment adviser or controlling
shareholder of the Trust against any liability to the Trust or to its
shareholders to which such person would otherwise be subject by reason of
willful malfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such person's office.
(i) The Trust shall have power to purchase and maintain insurance on behalf of
any person against any liability asserted against or incurred by such person,
whether or not the Trust would have the power to indemnify such person against
such liability under the provisions of this Article. Nevertheless, insurance
will not be purchased or maintained by the Trust if the purchase or maintenance
of such insurance would result in the indemnification of any person in
contravention of any rule or regulation of the Securities and Exchange
Commission.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to Trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a Trustee, officer of controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by
such Trustee, officer of controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
None
ITEM 27. PRINCIPAL UNDERWRITERS
(a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America,
Inc., The Investment Company of America, Intermediate Bond Fund 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 Money Fund of America,
U.S. Treasury Money Fund of America and Washington Mutual Investors Fund, Inc.
<TABLE>
<CAPTION>
(B) (1) (2) (3)
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRANT
<S> <C> <C> <C>
David L. Abzug Regional Vice President None
27304 Park Vista Road
Agoura Hills, CA 91301
John A. Agar Vice President None
1501 N. University, Suite 227A
Little Rock, AR 72207
Robert B. Aprison Vice President None
2983 Bryn Wood Drive
Madison, WI 53711
L William W. Bagnard Vice President None
Steven L. Barnes Senior Vice President None
5400 Mount Meeker Road
Suite 1
Boulder, CO 80301-3508
B Carl R. Bauer Assistant Vice President None
Michelle A. Bergeron Senior Vice President None
4160 Gateswalk Drive
Smyrna, GA 30080
J. Walter Best, Jr. Regional Vice President None
9013 Brentmeade Blvd.
Brentwood, TN 37027
Joseph T. Blair Senior Vice President None
148 E. Shore Ave.
Groton Long Point, CT 06340
John A. Blanchard Vice President None
6421 Aberdeen Road
Mission Hills, KS 66208
Ian B. Bodell Senior Vice President None
P.O. Box 1665
Brentwood, TN 37024-1665
Mick L. Brethower Senior Vice President None
2320 North Austin Avenue
Georgetown, TX 78626
Alan Brown Regional Vice President None
4129 Laclede Avenue
St. Louis, MO 63108
B J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
8002 Greentree Road
Bethesda, MD 20817
Victor C. Cassato Senior Vice President None
609 W. Littleton Blvd., Suite 310
Greenwood Village, CO 80120
Christopher J. Cassin Senior Vice President None
19 North Grant Street
Hinsdale, IL 60521
Denise M. Cassin Vice President None
1301 Stoney Creek Drive
San Ramon, CA 94538
L Larry P. Clemmensen Director None
L Kevin G. Clifford Director, President and None
Co-Chief
Executive Officer
Ruth M. Collier Senior Vice President None
29 Landsdowne Drive
Larchmont, NY 10538
S David Coolbaugh Assistant Vice President None
H Carlo O. Cordasco Assistant Vice President None
Thomas E. Cournoyer Vice President None
2333 Granada Boulevard
Coral Gables, FL 33134
Douglas A. Critchell Senior Vice President None
3521 Rittenhouse Street, N.W.
Washington, D.C. 20015
L Carl D. Cutting Vice President None
William F. Daugherty Regional Vice President None
1216 Highlander Way
Mechanicsburg, PA 17055
Daniel J. Delianedis Regional Vice President None
8689 Braxton Drive
Eden Prairie, MN 55347
Michael A. DiLella Vice President None
P. O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
505 E. Main Street
Jenks, OK 74037
Kirk D. Dodge Senior Vice President None
633 Menlo Avenue, Suite 210
Menlo Park, CA 94025
Peter J. Doran Director, Executive Vice None
President
100 Merrick Road, Suite 216W
Rockville Centre, NY 11570
L Michael J. Downer Secretary None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
I Lloyd G. Edwards Senior Vice President None
Timothy L. Ellis Regional Vice President None
1441 Canton Mart Road, Suite 9
Jackson, MS 39211
L Paul H. Fieberg Senior Vice President None
John Fodor Senior Vice President None
15 Latisquama Road
Southborough, MA 01772
Daniel B. Frick Regional Vice President None
845 Western Avenue
Glen Ellyn, IL 60137
Clyde E. Gardner Senior Vice President None
Route 2, Box 3162
Osage Beach, MO 65065
B Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Vice President None
12210 Taylor Road
Plain City, OH 43064
L Paul G. Haaga, Jr. Director None
B Mariellen Hamann Assistant Vice President None
David E. Harper Senior Vice President None
150 Old Franklin School Road
Pittstown, NJ 08867
H Mary Pat Harris Assistant Vice President None
Ronald R. Hulsey Vice President None
6744 Avalon
Dallas, TX 75214
Robert S. Irish Regional Vice President None
1225 Vista Del Mar Drive
Delray Beach, FL 33483
Michael J. Johnston Director None
630 Fifth Avenue, 36th Floor
New York, NY 10111
B Damien M. Jordan Vice President None
Arthur J. Levine Senior Vice President None
12558 Highlands Place
Fishers, IN 46038
B Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
5506 East Mineral Lane
Littleton, CO 80122
Mark J. Lien Regional Vice President None
5570 Beechwood Terrace
West Des Moines, IA 50266
L Lorin E. Liesy Assistant Vice President None
L Susan G. Lindgren Vice President - None
Institutional
Investment Services
LW Robert W. Lovelace Director Senior Vice President
Stephen A. Malbasa Senior Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Senior Vice President None
5241 South Race Street
Littleton, CO 80121
L J. Clifton Massar Director, Senior Vice None
President
L E. Lee McClennahan Senior Vice President None
S John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
L R. William Melinat Vice President - None
Institutional
Investment Services
David R. Murray Vice President None
60 Briant Drive
Sudbury, MA 01776
Stephen S. Nelson Vice President None
P.O. Box 470528
Charlotte, NC 28247-0528
William E. Noe Regional Vice President None
304 River Oaks Road
Brentwood, TN 37027
Peter A. Nyhus Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Vice President None
62 Park Drive
Glenview, IL 60025
Gary A. Peace Regional Vice President None
291 Kaanapali Drive
Napa, CA 94558
Samuel W. Perry Regional Vice President None
6133 Calle del Paisano
Scottsdale, AZ 85251
Fredric Phillips Senior Vice President None
175 Highland Avenue, 4th Floor
Needham, MA 02494
B Candance D. Pilgrim Assistant Vice President None
Carl S. Platou Vice President None
7455 80th Place, S.E.
Mercer Island, WA 98040
L John O. Post Senior Vice President None
S Richard P. Prior Vice President None
Steven J. Reitman Senior Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Vice President None
244 Lambeau Lane
Glenville, NC 28736
George S. Ross Senior Vice President None
55 Madison Avenue
Morristown, NJ 07960
L Julie D. Roth Vice President None
L James F. Rothenberg Director None
Douglas F. Rowe Vice President None
414 Logan Ranch Road
Georgetown, TX 78628
Christopher S. Rowey Regional Vice President None
9417 Beverlywood Street
Los Angeles, CA 90034
Dean B. Rydquist Senior Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30005
Richard R. Samson Senior Vice President None
4604 Glencoe Avenue, #4
Marina del Rey, CA 90292
Joseph D. Scarpitti Vice President None
31465 St. Andrews
Westlake, OH 44145
L R. Michael Shanahan Director None
L Sherrie L. Shaw Assistant Vice President None
Brad W. Short Regional Vice President None
1601 Seal Way
Seal Beach, CA 90740
David W. Short Chairman of the Board and None
1000 RIDC Plaza, Suite 212 Co-Chief Executive
Officer
Pittsburgh, PA 15238
William P. Simon Senior Vice President None
912 Castlehill Lane
Devon, PA 19333
L John C. Smith Assistant Vice President None
-
Institutional Investment
Services
Rodney G. Smith Vice President None
100 N. Central Expressway
Suite 1214
Richardson, TX 75080
S Sherrie L. Snyder-Senft Assistant Vice President None
Anthony L. Soave Regional Vice President None
8831 Morning Mist Drive
Clarkston, MI 48348
Therese L. Souiller Assistant Vice President None
2652 Excaliber Court
Virginia Beach, VA 23454
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
L Kristen J. Spazafumo Assistant Vice President None
Daniel S. Spradling Senior Vice President None
181 Second Avenue
Suite 228
San Mateo, CA 94401
LW Eric H. Stern Director None
B Max D. Stites Vice President None
Thomas A. Stout Regional Vice President None
1004 Ditchley Road
Virginia Beach, VA 23451
Craig R. Strauser Vice President None
3 Dover Way
Lake Oswego, OR 97034
Francis N. Strazzeri Senior Vice President None
31641 Saddletree Drive
Westlake Village, CA 91361
L Drew W. Taylor Assistant Vice President None
S James P. Toomey Vice President None
I Christopher E. Trede Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Vice President None
60 Reedland Woods Way
Tiburon, CA 94920
J. David Viale Regional Vice President None
7 Gladstone Lane
Laguna Niguel, CA 92677
Thomas E. Warren Regional Vice President None
119 Faubel Street
Sarasota, FL 34242
L J. Kelly Webb Senior Vice President, None
Treasurer and Controller
Gregory J. Weimer Vice President None
206 Hardwood Drive
Venetia, PA 15367
B Timothy W. Weiss Director None
George J. Wenzel Regional Vice President None
3406 Shakespeare Drive
Troy, MI 48084
J. D. Wiedmaier Assistant Vice President None
3513 Riverstone Way
Chesapeake, VA 23325
Timothy J. Wilson Vice President None
113 Farmview Place
Venetia, PA 15367
B Laura L. Wimberly Vice President None
H Marshall D. Wingo Director, Senior Vice None
President
L Robert L. Winston Director, Senior Vice None
President
William R. Yost Senior Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Janet M. Young Regional Vice President None
1616 Vermont
Houston, TX 77006
Scott D. Zambon Regional Vice President None
2887 Player Lane
Tustin Ranch, CA 92782
</TABLE>
__________
L Business Address, 333 South Hope Street, Los Angeles, CA 90071
LW Business Address, 11100 Santa Monica Boulevard, 15th Floor, Los Angeles, CA
90025
B Business Address, 135 South State College Boulevard, Brea, CA 92821
S Business Address, 3500 Wiseman Boulevard, San Antonio, TX 78251
H Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
I Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
(c) None
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, as amended, are maintained and held in the
offices of its investment adviser, Capital Research and Management Company, 333
South Hope Street, Los Angeles, California 90071, and/or 135 South State
College Boulevard, Brea, California 92821.
Registrant's records covering shareholder accounts are maintained and kept by
its transfer agent, American Funds Service Company, 135 South State College
Boulevard, Brea,
California 92821, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240,
3500 Wiseman Boulevard, San Antonio, Texas 78251 and 5300 Robin Hood Road,
Norfolk, VA 23513.
Registrant's records covering portfolio transactions are maintained and kept
by its custodian, The Chase Manhattan Bank, One Chase Manhattan Plaza, New
York, New York 10081.
ITEM 29. MANAGEMENT SERVICES
None
ITEM 30. UNDERTAKINGS
n/a
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this amended
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Los Angeles, and State of California, on the
25th day of May, 2000.
EuroPacific Growth Fund
By /s/ Gina H. Despres
Gina H. Despres, Chairman of the Board
Pursuant to the requirements of the Securities Act of 1933, this amendment to
Registration Statement has been signed below on May 25, 2000, by the following
persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Principal Executive Officer:
/s/ Mark E. Denning President & Trustee
Mark E. Denning
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ R. Marcia Gould Treasurer
R. Marcia Gould
(3) Trustees:
Elisabeth Allison* Trustee
/s/ Mark E. Denning
Mark E. Denning President & Trustee
/s/ Gina H. Despres
Gina H. Despres Chairman of the Board
Robert A. Fox* Trustee
Alan Greenway* Trustee
Koichi Itoh* Trustee
William H. Kling* Trustee
John G. McDonald* Trustee
William I. Miller* Trustee
Kirk P. Pendleton Trustee
Donald E. Petersen* Trustee
Thierry Vandeventer Vice Chairman
</TABLE>
*By /s/ Vincent P. Corti
Vincent P. Corti, Attorney-in-Fact
Counsel represents that this amendment does not contain disclosures that would
make the amendment ineligible for effectiveness under the provisions of rule
485(b).
/s/ Kristine N. Nishiyama
(Kristine N. Nishiyama)