<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement [ ] Confidential, for Use of the
Commission Only (as permitted
by
Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
THE NEW ECONOMY FUND
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(Name of Registrant as Specified In Its Charter)
- - - - -------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
[ ] $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[X] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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Notes:
<PAGE>
THE NEW ECONOMY FUND
NOTICE OF MEETING OF SHAREHOLDERS
APRIL 5, 1995
TO THE SHAREHOLDERS OF
THE NEW ECONOMY FUND:
A Meeting of Shareholders of The New Economy Fund (the "Fund") will be held at
the offices of the Fund, 333 South Hope Street, 51st Floor, Los Angeles,
California, on April 5, 1995, at 1:00 p.m., local time, to consider and vote on
the following matters described under the corresponding numbers in the
accompanying Proxy Statement:
(1) election of a board of eleven Trustees;
(2) approval of a proposed amendment to clarify the Fund's fundamental
investment policy regarding investments in a single industry;
(3) approval of a proposed amendment to clarify the Fund's fundamental
investment policy regarding the purchase or sale of commodities or commodity
contracts;
(4) approval of a proposed amendment to the Fund's fundamental investment
policy regarding investments in restricted and illiquid securities;
(5) ratification of the selection, by the Fund's Board of Trustees, of
Deloitte & Touche LLP as the independent accountant of the Fund for the fiscal
year ending November 30, 1995; and
(6) such other matters as may properly come before the meeting.
The Board of Trustees has fixed the close of business on January 6, 1995, as
the record date for the determination of shareholders entitled to notice of and
to vote at the meeting.
THE PROPOSED BUSINESS CANNOT BE CONDUCTED AT THE MEETING UNLESS THE HOLDERS OF
A MAJORITY OF THE SHARES OF THE FUND OUTSTANDING ON THE RECORD DATE ARE PRESENT
IN PERSON OR BY PROXY. THEREFORE, PLEASE MARK, DATE, SIGN AND RETURN THE
ENCLOSED PROXY, WHICH IS SOLICITED BY THE BOARD OF TRUSTEES. THE PROXY IS
REVOCABLE AND YOUR SIGNING WILL NOT AFFECT YOUR RIGHT TO VOTE IN PERSON IN THE
EVENT THAT YOU ATTEND THE MEETING.
By order of the Board of Trustees,
Chad L. Norton
Secretary
February 15, 1995
IMPORTANT
SHAREHOLDERS CAN HELP THE FUND AVOID THE NECESSITY AND EXPENSE OF SENDING
FOLLOW-UP LETTERS TO ENSURE A QUORUM BY PROMPTLY RETURNING THE ENCLOSED PROXY.
PLEASE MARK, DATE, SIGN AND RETURN THE ENCLOSED PROXY IN ORDER THAT THE
NECESSARY QUORUM MAY BE REPRESENTED AT THE MEETING. THE ENCLOSED ENVELOPE
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.
THE NEW ECONOMY FUND
333 SOUTH HOPE STREET, LOS ANGELES, CALIFORNIA 90071
PROXY STATEMENT
MEETING OF SHAREHOLDERS - APRIL 5, 1995
The enclosed Proxy is solicited by the Board of Trustees of the Fund in
connection with the Meeting of Shareholders to be held on April 5, 1995. Every
Proxy returned in time to be voted at the meeting will be voted and, if a
specification is made with respect to any proposal, the proxy will be voted
accordingly. If no specification is made, the Proxy will be voted in favor of
the proposal. Anyone having submitted a Proxy may revoke it prior to its
exercise, either by filing with the Fund a written notice of revocation, by
delivering a duly executed Proxy bearing a later date, or by attending the
meeting and voting in person. This Proxy was first mailed to shareholders on
or about February 15, 1995.
At the close of business on January 6, 1995, the record date fixed by the
Board of Trustees for the determination of shareholders entitled to notice of
and to vote at the meeting, there were outstanding 189,141,222 shares of
beneficial interest, the only authorized class of securities of the Fund. Each
share is entitled to one vote. There is no provision for cumulative voting.
No person owned of record or was known by the Fund to own beneficially 5% or
more of the outstanding shares of the Fund.
With respect to the election of Trustees (Item 1), the eleven nominees
receiving the highest number of votes shall be deemed to be elected. The vote
required to approve Items 2, 3, 4 and 5 is the affirmative vote of the lesser
of (a) 67% or more of all shares present and entitled to vote at the meeting,
provided the holders of more than 50% of all outstanding shares on the record
date are present or represented by proxy, or (b) more than 50% of all
outstanding shares on the record date.
In the event that sufficient votes are not received by the meeting date, a
person named as proxy may propose one or more adjournments of the meeting for a
period or periods of not more than 120 days in the aggregate to permit further
solicitation of Proxies. The persons named as proxies may vote all Proxies in
favor of such adjournment. Signed but unmarked Proxies will be voted for the
below nominated Trustees and in favor of all proposals. Shareholders who
return Proxies marked as abstaining from voting on the proposals are treated as
being present at the meeting for purposes of obtaining the quorum necessary to
hold the meeting, but are not counted as part of the vote necessary to approve
the proposals. Where brokers holding Fund shares for their customers in Street
Name have not received instructions and are not authorized to vote without
instruction, those shares also will be treated as abstentions.
1. ELECTION OF TRUSTEES
Eleven Trustees are to be elected at the meeting, each to hold office until a
successor is elected and qualified. Because it is not anticipated that
meetings of shareholders will be held each year, the Trustees' terms will be
indefinite in length. All of the nominees for Trustee except Richard G. Capen,
Jr., Alan W. Clements, William R. Grimsley, E. Graham Holloway and Leonade D.
Jones were elected by shareholders at their last meeting on October 13, 1987.
Mr. Capen was elected by the Trustees on October 14, 1993; Mr. Clements was
elected by the Trustees on January 1, 1991; and Mr. Grimsley was elected by the
Trustees on March 12, 1992. Mr. Holloway and Ms. Jones each have been
nominated by the Board of Trustees and have agreed to serve as Trustee if
elected.
Each of the nominees has agreed to serve as Trustee if elected. If, due to
presently unforeseen circumstances, any nominee should not be available for
election, the persons named as proxies will vote the signed but unmarked
Proxies and those marked for the nominated Trustee for such other nominee as
the present Trustees may recommend. The table below and on the following page
sets forth certain information regarding the nominees.
<TABLE>
<CAPTION>
Name of Nominee Current Principal Year First Membership on Boards Shares
(Position with Fund) Occupation Elected a of Other Registered Beneficially
and Age and Principal Trustee Investment Companies and Owned Directly
Employment Publicly Held Companies or Indirectly at
During Past Five Years January 6, 1995
#
<S> <C> <C> <C> <C>
RICHARD G. CAPEN, JR. /1/ /2/ Corporate director and 1993 The American Funds Group 3,699
//3 author; former United (Director of one other
(Trustee) States Ambassador to fund)
60 Spain; former Vice
Chairman of the Board,
Knight Ridder, Inc.;
former Chairman and
Publisher, THE MIAMI
HERALD
H. FREDERICK CHRISTIE+/1/ /2/ Private Investor; 1983 The American Funds Group 4,120
//3 former President, The (Director/Trustee of 16
(Trustee) Mission Group other funds)
61 (non-utility holding American Variable
company, subsidiary of Insurance Series
Southern California Ducommun Inc.
Edison) Great Western Financial
Corporation
IHOP Corp.
Ultramar Corporation
ALAN W. CLEMENTS/2/ /3/ Private Investor; 1991 The American Funds Group 1,139
(Trustee) former Executive (Director of one other
66 Director-Finance, fund)
Imperial Chemical David S. Smith
Industries PLC (Holdings) PLC
Trafalgar House PLC
Mirror Group Newspapers
PLC
Cementone plc
ROBERT B. EGELSTON* Senior Partner, Capital 1983 The American Funds Group 4,324^
(Chairman of the Board) Group (Director of one other
64 Partners, Limited fund)
Partnership Bond Portfolio for
Endowments
Emerging Markets Growth
Fund
Endowments
ALAN GREENWAY /1/ /2/ /3/ President, Greenway 1983 The American Funds Group 1,000
(Trustee) Associates, Inc. (Director/Trustee of
67 (management consulting three other funds)
services); former
chairman, Australian
Tourist Commission
WILLIAM R. GRIMSLEY* Senior Vice President 1992 The American Funds Group 1,899^
(President) and Director, Capital (Director/Trustee of two
56 Research and Management other funds)
Company
E. GRAHAM HOLLOWAY* Former Chairman of the Nominee The American Funds Group 47,943^
(Trustee Nominee) Board, American Funds (Director of one other
64 Distributor, Inc. fund)
LEONADE D. JONES Treasurer, The Nominee The American Funds Group 72
(Trustee Nominee) Washington Post Company (Director of three other
47 funds)
WILLIAM H. KLING /2/ /3/ President, Minnesota 1987 The American Funds Group 5,613
(Trustee) Public Radio; (Director/Trustee of
52 President, Greenspring three other funds)
Co.; former President,
American Public Radio
(now Public Radio
International)
NORMAN R. WELDON/2/ /3/ President, Corvita 1983 The American Funds Group 14,608
(Trustee) Corporation; former (Director of one other
60 President, Cordis fund)
Corporation
PATRICIA K. WOOLF/2/ /3/ Private Investor; 1983 The American Funds Group 871
(Trustee) Lecturer, Department of (Director of three other
60 Molecular Biology, funds)
Princeton University Cordis Corporation
General Public Utilities
Corporation
National Life Insurance
Co. of Vermont
</TABLE>
The American Funds Group consists of 28 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.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, 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., 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. Government Securities Fund, The U.S. Treasury
Money Fund of America 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 vehicles for
certain variable insurance contracts; and Bond Portfolio for Endowments, Inc.
and Endowments, Inc. whose shares may be owned only by tax-exempt
organizations.
# Corporate positions, in some instances, may have changed during the period.
+ May be deemed an "interested person" of the Fund within the meaning of the
Investment Company Act of 1940 (the "1940 Act), due to membership on the board
of directors of the parent company of a registered broker-dealer.
* Is considered an "interested person" of the Fund within the meaning of the
1940 Act on the basis of his affiliation with Capital Research and Management
Company (the "Investment Adviser").
^ Includes shares beneficially owned under a retirement plan for employees of
the Investment Adviser and its affiliates.
/1/ The Fund has an Audit Committee comprised of the above-designated Trustees.
The function of the Committee includes such specific matters as recommending
independent public accountants to the Board of Trustees, reviewing the audit
plan and results of the audits and considering other matters deemed appropriate
by the Board of Trustees and/or the Committee.
/2/ The Fund has a Nominating Committee comprised of the above-designated
Trustees. The Nominating Committee's functions include selecting and
recommending to the full Board of Trustees nominees for election as Trustees of
the Fund. (Pursuant to rule 12b-1, the selection and nomination of Trustees
who are not "interested persons" of the Fund must be committed to the
discretion of the non-interested Trustees then in office.) While the
Nominating Committee is normally able to identify from its own resources an
ample number of qualified candidates, it will consider shareholder suggestions
of persons to be considered as nominees to fill future vacancies on the Board.
Such suggestions must be sent in writing to the Nominating Committee of the
Fund, c/o the Fund's Secretary, and must be accompanied by complete
biographical and occupational data on the prospective nominee to consideration
of his or her name by the Nominating Committee. See also "Shareholder
Proposals and Annual Meetings."
/3/ The Fund has a Contracts Committee comprised of the above-designated
Trustees. The Contracts Committee's function is to request, review and
consider the information deemed necessary to evaluate the terms of the Fund's
investment advisory and principal underwriting agreements and the Plan of
Distribution under rule 12b-1 that the Fund proposes to enter into, renew or
continue prior to voting thereon, and to make its recommendations to the full
Board of Trustees on these matters.
TRUSTEE COMPENSATION
(FOR FISCAL YEAR ENDED NOVEMBER 30, 1994)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Trustee or Nominee Aggregate Compensation Total Compensation Total Number
(including Voluntarily from All Funds of Fund
Deferred Compensation /1/) Managed by Boards on
from Fund during Fiscal Capital Research which Trustee
Year ended 11/30/94 and Management Company Serves
Richard G. Capen, Jr. $11,800 $24,133 2
H. Frederick Christie 11,800 135,583 18
Alan W. Clements 7,000 21,833 2
Robert B. Egelston none/2/ none/2/ 4
Alan Greenway 12,100 55,533 4
William R. Grimsley none/2/ none/2/ 4
E. Graham Holloway none/2/ none/2/ 1
Leonade D. Jones none/3/ 39,300 5
William H. Kling 11,336/4/ 59,333 5
Norman R. Weldon 10,900 29,133 3
Patricia K. Woolf 11,200 62,833 5
</TABLE>
/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 Trustee.
/2/ Robert B. Egelston, William R. Grimsley, and E. Graham Holloway are
affiliated with the Fund's Investment Adviser and, accordingly, receive no
remuneration from the Fund.
/3/ Trustee nominee has received no remuneration to date from the Fund.
/4/ Since the plan's adoption, the total amount of deferred compensation
accrued by the Fund (plus earnings thereon) for participating Trustees is as
follows: William H. Kling ($7,636). Amounts deferred and accumulated earnings
thereon are not funded and are general unsecured liabilities of the Fund until
paid to the Trustee.
Each unaffiliated Trustee is paid a fee of $7,000 per annum plus $700 for each
Board of Trustees meeting attended and $300 for each meeting attended as a
member of a Committee of the Board of Trustees.
There were five Board of Trustees, two Audit Committee, three Nominating
Committee and one Contracts Committee meeting during the fiscal year ended
November 30, 1994. All of the incumbent Trustees attended at least 75% of the
total meetings of the Board and of the committees of which they were members.
OTHER EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
<S> <C> <C>
Name Principal Occupation/1/ Officer
(Position with Fund) Continuously
and Age Since /2/
Timothy D. Armour Capital Research Company, 1991
(Vice President) Executive Vice President and
34 Director
Vincent P. Corti Capital Research and 1983
(Vice President) Management Company,
38 Vice President-Fund Business
Management Group
Steven N. Kearsley Capital Research and 1983
(Vice President and Management Company,
Treasurer) Vice President and Treasurer
53
James B. Lovelace Capital Research and 1991
(Vice President) Management Company,
38 Vice President
Chad L. Norton Capital Research and 1991
(Secretary) Management Company,
34 Vice President-Fund Business
Management Group
</TABLE>
/1/ The occupations shown reflect the principal responsibilities of each
individual during the past five years. Corporate positions have in some
instances changed during this period.
/2/ Officers are elected to hold office until their respective successors are
elected, or until they resign or are removed.
No officers, directors, or employees of the Investment Adviser or its
affiliates receive any remuneration from the Fund. All officers and Trustees
as a group owned beneficially fewer than 1% of the Fund's shares outstanding on
January 6, 1995.
2. APPROVAL FOR A PROPOSED AMENDMENT TO CLARIFY THE FUND'S FUNDAMENTAL
INVESTMENT POLICY REGARDING INVESTMENTS IN A SINGLE INDUSTRY
Securities and Exchange Commission (the "SEC") guidelines currently provide
that a fund is "concentrating" its investments if it may invest 25% OR MORE of
the value of its total assets in a single industry.
One of the Fund's Investment Restrictions as set forth in the Fund's current
registration statement provides that the Fund may not, among other things,
invest MORE THAN 25% of the value of its assets in a single industry. This
restriction was adopted pursuant to and consistent with previous SEC
guidelines, which at the time defined the limit as "more than 25%." The
Investment Restriction currently reads as follows:
[The fund may not:]
"invest more than 25% of the value of its total assets in the securities of
companies engaged in any one industry."
In order to be consistent with the SEC's current guidelines, the Fund has a
non-fundamental policy prohibiting it from investing 25% OR MORE of the value
of its total assets in a single industry. The Board of Trustees has determined
that it is desirable that the Fund amend its fundamental policy to be
consistent with the current SEC guidelines, although it recognizes that the
distinction between MORE THAN 25% or 25% OR MORE is minor and is expected to
have no impact on the Fund's investment program. As proposed to be amended,
the Fund's Investment Restriction would state as follows:
[The fund may not:]
"Purchase the securities of companies in a particular industry (other than
securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities) if thereafter 25% or more of the value of its total assets
would consist of securities issued by companies in that industry."
THE BOARD OF TRUSTEES HAS APPROVED THE PROPOSED AMENDMENT AND RECOMMENDS THAT
SHAREHOLDERS VOTE IN FAVOR OF THE AMENDMENT.
3. APPROVAL OF A PROPOSED AMENDMENT TO CLARIFY THE FUND'S FUNDAMENTAL
INVESTMENT POLICY REGARDING THE PURCHASE OR SALE OF COMMODITIES OR COMMODITY
CONTRACTS
In connection with the expanded opportunity to invest in securities of issuers
outside the United States, the Board of Trustees has approved, and proposes for
shareholder approval, an amendment to the Fund's current policy regarding the
purchase or sale of commodities or commodity contracts with respect to entering
into forward currency contracts. Currently, the Fund engages in currency
transactions only on a spot (i.e. cash) basis in amounts directly related to
its transactions in non-U.S. securities. The Investment Restriction currently
reads as follow:
[The fund may not:]
"Buy or sell commodities or commodity contracts in the ordinary course of its
business.:
At its meeting on December 15, 1994, the Board of Trustees unanimously
approved the addition of the following language to the Restriction:
"...provided, however, that entering into a forward currency contract shall
not be prohibited by this restriction."
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. The Board believes that the ability to enter into forward currency
contracts would provide added flexibility in meeting the Fund's investment
objective. As discussed in the Fund's prospectus, currency exchange rate
fluctuations are a major area of risk and opportunity for the Fund, requiring
particular attention by the Fund's Investment Adviser. The ability to enter
into forward currency contracts would permit the Fund to provide protection
against changes in currency exchange rates. For example, the Fund might
purchase a particular currency or enter into a forward currency contract to
preserve the U.S. dollar price of securities it intends to or has contracted to
purchase. Alternatively, it might sell a particular currency on either a spot
or forward basis to hedge against an anticipated decline in the dollar value of
securities it intends to or has contracted to sell. Although this strategy
could minimize the risk of loss due to a decline in the value of the hedged
currency, it could also limit any potential gain from an increase in the value
of the currency.
THE BOARD OF TRUSTEES HAS APPROVED THE PROPOSED AMENDMENT AND RECOMMENDS THAT
SHAREHOLDERS VOTE IN FAVOR OF THE AMENDMENT.
4. APPROVAL OF A PROPOSED AMENDMENT TO THE FUND'S FUNDAMENTAL INVESTMENT POLICY
REGARDING INVESTMENTS IN RESTRICTED AND ILLIQUID SECURITIES
Under its current fundamental investment policies the Fund may not "invest
more than 5% of its total assets in the securities of any issuers which are
restricted as to resale without registration under the Securities Act of 1933
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."
At the time the current restriction was adopted, the SEC considered that all
restricted securities were automatically illiquid. (Under SEC guidelines, a
security is illiquid if it cannot be disposed of within seven days in the
ordinary course of business at approximately the amount at which the mutual
fund has valued the security.) In recent years, however, a secondary market
has developed for the purchase and sale among institutional investors of
securities that technically are considered "restricted securities" because they
were initially issued as private placements rather than registered under the
Securities Act of 1933 (the "1933 Act"). Moreover, the SEC has adopted Rule
144A under the 1933 Act, which provides a "safe harbor" for the resale of
certain restricted securities among "qualified" institutional investors without
1933 Act registration. In the adopting release the SEC also modified the
interpretation described above relating to restricted securities by stating
that a technical restriction on resale does not automatically cause a security
to be illiquid, but it is simply one of the factors that should be considered
in determining whether the security is illiquid, and the responsibility for
determining whether a security is illiquid rests with the fund's board of
directors.
Subject to its oversight, the Fund's Board of Trustees has delegated the
day-to-day responsibilities of determining whether a security is illiquid to
the Investment Adviser. The factors the Investment Adviser considers when
making this determination include the frequency of trades in the security, the
number of dealers and investors willing to purchase or sell the security and
other factors relating to the issuer or the markets that may have an effect on
liquidity. Although the "safe harbor" of Rule 144A is intended to increase the
liquidity of restricted securities traded in the institutional marketplace, the
liquidity of any particular security will depend on such factors as the
availability of "qualified" institutional investors and the extent of investor
interest in the security, which can change from time to time. Accordingly, the
Fund's Investment Adviser (under the Board's supervision) must make liquidity
determinations on a case-by-case basis and continuously monitor the liquidity
of the Fund's portfolio securities.
SEC guidelines permit mutual funds to invest up to 15% of their net assets in
illiquid securities. In the SEC's view, a 15% limit is sufficient to ensure
that mutual funds will be able to comply with the requirements in the 1940 Act
that they be able to satisfy redemption requests within seven days of
receipt.
In light of these developments, the Fund's Board of Trustees has determined
that the Fund's current policy is too restrictive. Accordingly, the Board
recommends that shareholders approve an amendment to the Fund's investment
policies that would (i) recognize that not all restricted securities are
illiquid, and (ii) establish a 10% limit on illiquid securities. As proposed
to be amended, the Investment Restriction would state as follows:
[The Fund may not:]
"invest more than 10% of the value of its total assets in securities which are
not readily marketable or engage in the business of underwriting 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 BOARD OF TRUSTEES HAS APPROVED THE PROPOSED AMENDMENT AND RECOMMENDS THAT
SHAREHOLDERS VOTE IN FAVOR OF THE AMENDMENT.
5. RATIFICATION OR REJECTION OF SELECTION BY THE BOARD OF TRUSTEES OF
INDEPENDENT ACCOUNTANT
Shareholders are requested to ratify the selection by the Board of Trustees
(including a majority of Trustees who are not "interested persons" of the Fund
as that term as defined in the 1940 Act) of the firm of Deloitte & Touche LLP
as independent accountants for the Fund for the fiscal year 1995. In addition
to the normal audit services, Deloitte & Touche LLP provides services in
connection with the preparation and review of federal and state tax returns for
the Fund. Deloitte & Touche LLP has served as the Fund's independent
accountant since 1983, and has advised the Fund that it has no material direct
or indirect financial interest in the Fund or its affiliates. No
representative of the firm of Deloitte & Touche LLP is expected to attend the
meeting of shareholders.
THE BOARD OF TRUSTEES RECOMMENDS THAT YOU VOTE IN FAVOR OF THE RATIFICATION OF
THE SELECTION OF DELOITTE & TOUCHE LLP AS INDEPENDENT ACCOUNT FOR THE CURRENT
FISCAL YEAR.
SHAREHOLDER PROPOSALS AND ANNUAL MEETINGS
Any shareholder proposals for inclusion in proxy solicitation material for a
shareholders meeting should be submitted to the Secretary of the Fund, at the
Fund's principal executive offices, 333 South Hope Street, 52nd Floor, Los
Angeles, CA 90071. Any such proposals must comply with the requirements of
Rule 14a-8 under the Securities Exchange Act of 1934.
Under the law of Massachusetts, where the Fund is organized, the Fund is not
required to hold regular meetings of shareholders. Under the 1940 Act, a vote
of shareholders is required from time to time for particular matters but not
necessarily on an annual basis. As a result, it is not anticipated that the
Fund will hold shareholders meetings on a regular basis and any shareholder
proposal received may not be considered until such a meeting is held.
MISCELLANEOUS
The solicitation of the enclosed Proxy is made by and on behalf of the Board
of Trustees of the Fund. The cost of soliciting proxies, consisting of
printing, handling and mailing of the Proxies and related materials, will be
paid by the Fund. In addition to solicitation by mail, certain officers and
Trustees of the Fund, who will receive no extra compensation for their
services, may solicit by telephone, telegram or personally.
Neither the persons named in the enclosed Proxy nor the Board of Trustees are
aware of any matters that will be presented for action at the meeting other
than the matters set forth herein. Should any other matters requiring a vote
of shareholders arise, the proxies in the accompanying form will confer upon
the person or persons entitled to vote the shares represented by such Proxy a
discretionary authority to vote the shares in respect to any such other matters
in accordance with their best judgment in the interest of the Fund.
Capital Research and Management Company is the investment adviser to the Fund
and is located at 333 South Hope Street, Los Angeles, CA 90071 and 135 South
State College Boulevard, Brea, CA 92621. American Funds Distributors, Inc. is
the principal underwriter of the Fund's shares and is located at the Los
Angeles and Brea addresses above and at 8000 I-10 West, San Antonio, TX 78230,
83332 Whitfield Crossing Boulevard, Indianapolis, IN 46240, and 5300 Robin
Hood Road, Norfolk, VA 23513.
A COPY OF THE FUND'S MOST RECENT ANNUAL REPORT AND SEMI-ANNUAL REPORT MAY BE
OBTAINED, WITHOUT CHARGE, BY WRITING TO THE SECRETARY OF THE FUND AT 333 SOUTH
HOPE STREET, 52ND FLOOR, LOS ANGELES, CA 90071, OR BY TELEPHONING
800/421-0180. THESE REQUESTS WILL BE HONORED WITHIN THREE BUSINESS DAYS OF
RECEIPT.
By Order of the Board of Trustees
Chad L. Norton
Secretary
February 15, 1995
PROXY CARD
PROXY THE NEW ECONOMY FUND
PROXY SOLICITED ON BEHALF The undersigned hereby appoints Chad L.
OF THE BOARD OF TRUSTEES Norton, Robert B. Egelston, and William
OF THE FUND FOR THE MEETING R. Grimsley, and each of them, his/her
OF SHAREHOLDERS TO BE HELD true and lawful agents and proxies with
APRIL 5, 1995 full power of substitution to represent
the undersigned at the Meeting of
Shareholders to be held at the office of
the Fund, 333 South Hope Street, 51st Floor,
Los Angeles, California, 90071, on Wednesday,
April 5, 1995 at 1:00 p.m., on all matters
coming before the meeting.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE
VOTED IN THE MANNER YOU DIRECTED. IF NO
DIRECTION IS GIVEN, WITH RESPECT TO ANY
PARTICULAR ITEM, THIS PROXY WILL BE VOTED
FOR THE NOMINEES IN ITEM 1 AND FOR ITEMS 2,
3, 4 AND 5.
Please sign exactly as your name(s) appear
on this card. Joint owners should each sign
individually. Corporate proxies should be
signed in full corporate name by an
authorized officer. Fiduciaries should
give full titles.
- - - - ---------DETACH ALONG PERFORATION AND RETURN IN THE ENVELOPE PROVIDED---------
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| IMPORTANT |
| Shareholders can help the Fund avoid the necessity and expense of sending |
| follow-up letters by promptly returning the enclosed proxy. |
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IMPORTANT INSTRUCTIONS FOR COMPLETING YOUR PROXY VOTE [LOGO]
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- - - - - Please fill in the ovals // in red or black ink. Account Number:
- - - - - Sign and date your proxy.
- - - - - Detach proxy and return promptly in the enclosed
envelope, which requires no postage if mailed in
the United States.
ADDRESS CORRECTION
If address is not correct as shown, please make
correction on this form. DETACH FROM PROXY and
return to American Funds Service Company in the
enclosed envelope.
IMPORTANT - PLEASE DETACH ALONG PERFORATION
THE NEW ECONOMY FUND PROXY
1. Election of Trustees // To vote for all nominess
// To withhold your vote from all nominees
- - - - - Richard G. Capen, Jr. - H. Frederick Christie - Alan W. Clements
- - - - - E. Graham Holloway - Leonade D. Jones - William H. Kling
- - - - - Robert B. Egelston - Alan Greenway - William R. Grimsley
- - - - - Norman R. Weldon - Patricia K. Woolf
To withhold your vote for any individual Account Number:
nominee write the nominee's name(s) on Shares owned as of January 6, 1995
the line below.
- - - - --------------------------------------- For Against Abstain
2. Approval of a proposed amendment to
clarify the Fund's fundamental investment // // //
policy regarding investments in a single
industry:
3. Approval of a proposed amendment to
clarify the Fund's fundamental // // //
investment policy regarding the purchase
or sale of commodities or commodity
contracts:
4. Approval of a proposed amendment to the
Fund's fundamental investment policy // // //
regarding investments in restricted and
illiquid securities:
5. Ratification of selection of Deloitte
and Touche LLP as independent accountant: // // //
In their discretion, upon other matters as
may properly come before the meeting.
SHAREHOLDER(S)
PLEASE SIGN
HERE X__________________________X________________________
SIGNED SIGNED
_______________
(Date)
