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Previous: FRANKLIN TEMPLETON JAPAN FUND, 497, 1995-08-10 |
Next: INTERCAPITAL CALIFORNIA INSURED MUNICIPAL INCOME TRUST, DEF 14A, 1995-08-10 |
Capital World Growth and Income Fund
Semi-Annual Report for the six months ended May 31, 1995
[The American Funds Group (R)]
<PAGE>
CAPITAL WORLD GROWTH AND INCOME FUND (SM) seeks long-term capital growth while
providing current income. It invests on a global basis in a diversified
portfolio of common stocks and other equity-type securities, bonds and money
market instruments.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the total returns and average annual compound
returns with all distributions reinvested for periods ended June 30, 1995 (the
most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods -- Since inception on 3/26/93:
+28.15%, or +11.58% a year; 12 months: +8.91%. Sales charges are lower for
accounts of $50,000 or more. The fund's 30-day yield as of June 30, 1995,
calculated in accordance with the Securities and Exchange Commission formula,
was 3.19%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY,
THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. All investments are subject
to certain risks. For example, those which include common stocks are affected
by fluctuating stock prices, and those which include bonds are affected by
interest rate fluctuations. Investments outside the U.S. (especially those in
developing countries) are subject to additional risks, including currency
fluctuations, political and social instability, differing securities
regulations and accounting standards, limited public information, possible
changes in taxation, and periods of illiquidity. Accordingly, investors should
maintain a long-term perspective.
FELLOW SHAREHOLDERS:
CAPITAL WORLD GROWTH AND INCOME FUND CONTINUED TO MAKE GOOD PROGRESS DURING THE
SIX MONTHS ENDED MAY 31. FOR THE FIRST HALF OF ITS 1995 FISCAL YEAR, THE FUND
PROVIDED YOU WITH A GAIN OF 10.3% IF YOU REINVESTED YOUR INCOME DIVIDENDS OF 15
AND 12 CENTS A SHARE PAID IN DECEMBER AND MARCH, RESPECTIVELY, AND THE
29-CENT-A-SHARE CAPITAL GAIN DISTRIBUTION PAID IN DECEMBER.
By comparison, the Morgan Stanley Capital International (MSCI) World Index
-- an unmanaged index that gauges the returns of major stock markets around the
globe -- rose 10.5% with dividends reinvested. For the 12 months ended May 31,
Capital World Growth and Income Fund was up 13.0% while the MSCI World Index
increased 10.9%, both with dividends reinvested.
U.S. stocks have been among the world's strongest in recent months. The
unmanaged Standard & Poor's 500 Composite Index, a leading index of U.S.
equities, gained 19.2% in the six-month period with dividends reinvested and
its return for the past 12 months was 20.2%.
Since the fund's introduction on March 26, 1993, it has generated a total
return of 35.7% with dividends reinvested. This translates into a compound
annual growth rate of 15.0%, outpacing the average compound returns of 13.7% a
year for the MSCI World Index and 11.1% for the S&P 500 during the same period.
In addition, the fund's lifetime average annual compound return compares
favorably with the 11.7% average annualized return of all 61 global equity
funds in existence during the same period, according to Lipper Analytical
Services.
THE SIX MONTHS IN REVIEW
In searching the globe for growth and income opportunities, Capital World
Growth and Income Fund found there was no place like home. Over the past six
months, the fund's holdings in the stocks of companies domiciled in the U.S.
increased from 23% to 27% of its net assets as a result of additional purchases
and a rising U.S. stock market.
The fund also was positively affected during much of the reporting period
by the strengthening of many of the world's major currencies against the U.S.
dollar. Although most non-U.S. markets (with the exception of Japan) had
positive returns in local currency terms, these returns became even more
attractive when translated into weaker U.S. dollars. Many U.S.-based
multi-national companies with earnings from abroad were also helped by currency
gains. Conversely, many companies based abroad that export to the U.S. were
hurt by the strength of their own countries' currencies.
It is important to remember that fluctuations in currencies -- whether
apparently beneficial or detrimental in the short term -- have a complex effect
on the prospects of companies in the portfolio. Your fund does not look to
capitalize on the consequences of such short-term currency movements. Rather,
it seeks to achieve its objectives of growth and income over the long term by
investing both inside and outside the U.S. on a company-by-company basis.
Seven of the fund's 10 largest holdings at the beginning of the reporting
period had a positive impact on the portfolio's results for the six months
through May 31. Two were up more than 20% (THORN EMI and First Union); four
gained 12% to 20% (Internationale Nederlanden Groep, Advance Bank Australia,
Koninklijke PTT Nederland and Telecom New Zealand); and one rose more than 5%
(National Australia Bank).
Of the three largest stocks that declined in value since November 30, two
fell between 1% and 5% (Brierley Investments and National Power) and one slid
19% (Eastern Group). National Power, Eastern Group and other U.K.-based
electric utility companies in our portfolio were severely affected in March by
an unexpected decision by a government-appointed regulator to reopen the
industry's five-year price review announced last summer.
The end of the fiscal half-year saw two new entries on the fund's 10
largest holdings list make positive contributions. Reckitt & Colman, a leading
U.K. producer of household goods, climbed more than 19% in the past six months,
and Tele Danmark, the principal provider of telephone and cable TV services in
Denmark, rose 10%.
The fund's banking and financial services holdings (which totaled 15% of
net assets on May 31) were generally aided by lower or stabilized interest
rates worldwide. Out of the 27 stocks in the portfolio that rose more than 25%
during the fiscal half-year, nine were banks and financial services companies.
SEEKING VALUES AROUND THE WORLD
In scanning the globe for potential investments, we continually reassess
the prospects of companies in every market. One of the advantages of a truly
global approach is that we have the flexibility to move to situations that are
the most attractive -- and move away from those that do not appear to offer
good long-term value.
Our holdings in Hong Kong were helped by that market's 11.3% gain over the
past six months, second only to market increases in the U.S. and Canada in
local currency terms. Moreover, the fund benefited from our decision to
virtually avoid the Japanese market, which lost almost 17% (with dividends
reinvested) in local currency terms because of the country's stagnant economy
and banking crisis. Translated into U.S. dollars, the Japanese market did much
better (-2.5%) due to the strength of the yen.
Another market that was weak was Mexico. The devaluation of the peso last
December caused Telefonos de Mexico, our largest Mexican holding, to lose 47%
of its value and become the fund's hardest hit stock. Because only 1.3% of net
assets was invested in Mexico at the beginning of the reporting period,
however, the portfolio was minimally affected by the combination of the
declining Mexican market and the peso's fall.
THE SEASONALITY OF DIVIDEND PAYMENTS
Capital World Growth and Income Fund paid two dividends totaling 27 cents
during the past six months versus the two dividends totaling 17 cents paid
during the same six-month period last year. This increase comes from a shift in
the fund's portfolio mix as well as dividend increases made by a number of
companies in the portfolio.
On May 31, the fund declared a dividend of 19 cents payable in early June,
compared to the 14-cent dividend paid a year earlier. The current June payment
is likely to be the highest in the fiscal year, followed by a somewhat lower
one in September, and the two lowest dividends in December and March. This
pattern is caused by the fund's non-U.S. holdings. Many companies located
outside North America pay dividends semi-annually, usually in unequal amounts,
or annually, often between May and July. Most U.S. companies, on the other
hand, pay quarterly dividends in equal amounts.
KEEPING A LONG-TERM PERSPECTIVE
Since we last reported to you, we have been somewhat cautious about
investing in markets outside the U.S. This caution has been warranted since
most non-U.S. markets have produced lackluster results which looked reasonable
only when translated into U.S. dollars. In the months to come, however, we
anticipate finding values in several markets that have lagged the U.S. in the
past six months.
When Capital World Growth and Income Fund was started just over two years
ago, we believed that a conservative, globally diversified portfolio seeking
growth and income would prove rewarding to investors over longer periods of
time. We continue to believe this will prove to be true and recommend keeping a
long-term perspective during the down periods that will inevitably occur from
time to time in the future.
We welcome the fund's many new shareholders and look forward to reporting
to you six months from now in our annual report.
Cordially,
Thierry Vandeventer
Chairman of the Board
Paul G. Haaga, Jr.
President
June 30, 1995
<PAGE>
WHERE CAPITAL WORLD GROWTH AND INCOME FUND'S ASSETS ARE INVESTED
(equity-type holdings except where indicated, as of 5/31/95)
EUROPE
38.9%
=======
United Kingdom - 15.5%
Netherlands - 6.4
France - 3.8
Sweden - 3.6
Germany - 2.8
Spain - 1.9
Italy - 1.0
Denmark - 1.0
Belgium - .7
Switzerland - .6
Norway - .5
Finland - .5
Luxembourg - .3
Austria - .3
THE AMERICAS
32.2%
==============
United States - 27.0%
Canada - 2.6
Argentina - 1.4
Mexico - .7
Brazil - .5
ASIA/PACIFIC RIM
14.9%
==================
Australia - 5.3%
New Zealand - 4.3
Hong Kong - 4.1
Thailand - .8
Japan - .3
India - .1
OTHER
.8%
===================
Supranational - .8%
BONDS, CASH AND EQUIVALENTS
13.2%
<PAGE>
CAPITAL WORLD GROWTH AND INCOME FUND'S
10 LARGEST HOLDINGS
PERCENT OF
NET ASSETS
INTERNATIONALE NEDERLANDEN GROEP NV
Netherlands (Insurance) 2.66%
Based in Amsterdam, this is one of Europe's most diversified
financial services companies, maintaining a network of offices,
branches and agencies active in 47 countries.
TELECOM CORP. OF NEW ZEALAND LTD.
New Zealand (Telecommunications) 2.23%
New Zealand's principal supplier of local, national and international
telephone services also offers a wide range of other telecommunications
services including cellular, directories, mobile radio, paging and data
communications.
THORN EMI PLC
United Kingdom (Recreation & Other Consumer Products) 1.41%
THORN EMI's subsidiaries include one of the world's premier music
companies, a domestic products rental company with operations in 19
countries, a music retailer with over 160 stores in six nations, and
other international businesses.
NATIONAL AUSTRALIA BANK LTD.
Australia (Banking) 1.35%
With roots dating back to 1858, National Australia Bank is one of the
country's leading financial institutions. Through numerous acquisitions
it has grown into an international powerhouse, operating some of the
largest banks in New Zealand, Scotland, Ireland and England.
KONINKLIJKE PTT NEDERLAND NV
Netherlands (Telecommunications) 1.23%
The leading provider of domestic and international postal and
telecommuniations services in the Netherlands, Koninklijke PTT is
branching out through partnerships with Telia of Sweden, Swiss PTT
and AT&T in the U.S. The company was privatized in 1994.
ADVANCE BANK AUSTRALIA LTD.
Australia (Banking) 1.14%
A well-managed and innovative regional bank in Australia, Advance
Bank's services include savings, checking and investment accounts;
personal and home loans; property and equity trusts; and insurance.
FIRST UNION CORP.
U S A (Banking) 1.11%
A bank holding company based in Charlotte, North Carolina, First
Union is engaged in commercial banking, trusts and other financial
services throughout the U.S.
RECKITT & COLMAN PLC
United Kingdom (Food & Household Products) .98%
With manufacturing facilities in more than 35 countries and a
distribution network in more than 120, this producer of household,
toiletry, food and pharmaceutical products is taking steps to
become one of the leading household products companies in the world.
TELE DANMARK AS
Denmark (Telecommunications) .97%
Not only is Tele Danmark the principal provider of domestic and
international telephone services in Denmark, it is also the market
leader in mobile telephones and data communications and operates
the country's largest cable television business.
BRIERLEY INVESTMENTS LTD.
New Zealand (Multi-Industry) .97%
This firm owns shares in other companies and actively manages its
investments. Among its assets are hotels, offices, airlines and
factories in New Zealand, Australia, the U.K. and the U.S.
<PAGE>
INVESTMENT PORTFOLIO
MAY 31, 1995 (UNAUDITED)
=========================================================================
LARGEST INDUSTRY HOLDINGS
-------------------------------
EQUITY-TYPE SECURITIES 86.8%
Banking 14.1%
Telecommunications 7.9%
Health & Personal Care 5.3%
Utilities: Electric & Gas 4.9%
Business & Public Services 4.1%
Other Industries 50.5%
BONDS & NOTES 2.7%
CASH & EQUIVALENTS 10.5%
<TABLE>
<CAPTION>
------------------------------------------- ---------- ---------- ----------
Shares or Market Percent
Equity-Type Securities Principal Value of Net
(common and preferred stocks and convertible Amount (Millions) Assets
debentures)
------------------------------------------- ---------- ---------- ----------
<S> <C> <C> <C>
BANKING- 14.10%
National Australia Bank Ltd. (Australia) 5,072,829 $43.240 1.35
Advance Bank Australia Ltd. (Australia) 4,928,338 36.270 1.14
First Union Corp. (USA) 725,000 35.525 1.11
Australia and New Zealand Banking Group Ltd. 7,811,693 28.071 .88
ABN AMRO Holding NV 711,279 26.936 .84
Banco Popular Espanol, SA 173,500 26.043 .81
Bank of New York Co., Inc. 600,000 24.450 .77
Chemical Banking Corp. 450,000 20.756 .65
Bangkok Bank Ltd., 3.25% convertible
debentures 2004 /1/ $19,023,000 19.403 .61
Christiania Bank 4,350,000 9.157 .46
Christiania Bank (American Depositary Receipts) /1/ 270,000 5.603
First Chicago Corp. 250,000 14.344 .45
Banc One Corp. 400,000 13.900 .44
Stadshypotek AB, Class A 870,000 12.943 .41
Challenge Bank Ltd. 4,842,840 12.460 .39
National City Corp. 400,000 12.150 .38
Credit local de France 125,000 10.995 .34
Istituto Mobiliare Italiano SpA (American
Depositary Receipts) 500,000 9.438 .30
Safra Republic Holdings SA 110,000 9.240 .29
National Bank of Canada 1,000,000 7.666 .24
Bank of Ayudhya Ltd. 1,273,300 6.813 .21
Canadian Imperial Bank of Commerce 250,000 6.092 .19
Banca Popolare di Bergamo-Credito Varesino
S.C.r.l. 400,000 5.174 .18
Banca Popolare di Bergamo-Credito Varesino
S.C.r.l., 7.50% convertible debentures 1999 LIT1,000,000, .693
000
Grupo Financiero Banamex Accival, SA de CV,
7.00%
convertible debentures 1999 $8,210,000 5.747 .18
J.P. Morgan & Co. Inc. 80,000 5.670 .18
Westpac Banking Corp. 1,440,164 5.289 .16
Svenska Handelsbanken Group, Class A 325,000 4.768 .15
Banco Bilbao Vizcaya, SA 160,000 4.640 .14
Swiss Bank Corp. 11,171 4.002 .12
National Westminster Bank PLC 438,906 3.753 .12
Kansallis-Osake-Pankki /2/ 3,500,000 3.706 .12
BankAmerica Corp. 70,000 3.657 .11
Credit Foncier de France 27,802 3.585 .11
Banco de Santander, SA (American Depositary
Receipts) 80,000 3.050 .10
CS Holding Group 6,500 3.043 .10
Bank of Montreal 110,000 2.299 .07
TELECOMMUNICATIONS- 7.94%
Telecom Corp. of New Zealand Ltd. 8,380,000 33.401
Telecom Corp. of New Zealand Ltd. /1/ 4,048,000 16.135 2.23
Telecom Corp. of New Zealand Ltd. (American
Depositary Receipts) 331,000 21.267
Koninklije PTT Nederland NV 1,087,800 39.404 1.23
Tele Danmark AS, Class B (American Depositary 924,100 26.337 .97
Receipts)
Tele Danmark AS, Class B 82,500 4.685
Telecomunicacoes Brasileiras SA, preferred
nominative (American Depositary
Receipts) /1/ 480,479 16.997 .54
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) 582,300 16.377 .51
STET-Societa Finanziaria Telefonica p.a., 4,775,000 10.915 .42
nonconvertible savings shares
STET-Societa Finanziaria Telefonica p.a. 890,000 2.560
Telefonica de Argentina SA, Class B (American 383,000 10.245 .42
Depositary Receipts)
Telefonica de Argentina SA, Class B 1,150,000 3.106
International CableTel Inc., 7.25% convertible
debentures 2005 11,000,000 11.495 .36
Pacific Telesis Group 352,455 9.428 .30
Vodafone Group PLC (American Depositary
Receipts) 270,000 9.079 .28
Cable and Wireless PLC 803,452 5.378 .17
Bell Atlantic Corp. 75,000 4.181 .13
Telecom Italia SpA 1,264,200 3.314 .10
U S WEST, Inc. 80,000 3.300 .10
AirTouch Communications /2/ 117,820 3.211 .10
Ameritech Corp. 60,000 2.663 .08
MULTI-INDUSTRY- 7.52%
Brierley Investments Ltd. 37,474,549 27.633 .97
Brierley Investments Ltd., convertible
preferred shares 4,628,000 3.136
Hutchison Whampoa Ltd. 5,990,000 30.280 .95
B A T Industries PLC 3,011,000 23.501 .73
Incentive AB, Class B 520,000 19.659 .62
Hanson PLC 5,156,780 19.592 .61
Harsco Corp. 345,000 17.552 .55
Industriforvaltnings AB Kinnevik, Series 3,
10.50% convertible debentures 1997 SKR50,250,000 13.716 .43
Jardine Strategic Holdings Ltd.
3,375,000 11.812 .38
Jardine Strategic Holdings Ltd.,
7.50% convertible
debentures 2049 $181,000 .206
Textron Inc. 155,000 9.436 .30
Groupe Bruxelles Lambert SA 63,000 8.617 .27
AB Industrivarden, Class A 300,000 8.189 .26
LTV Corp. /2/ 500,000 7.000 .22
Compagnie Nationale a Portefeuille SA 100,000 6.545 .21
Compagnie Nationale a Portefeuille SA, warrants,
expire 1999 /2/ 150,000 .466
Canadian Pacific Ltd. 400,000 6.850 .21
Lend Lease Corp. Ltd. 508,788 6.655 .21
Pearson PLC 650,000 6.255 .20
Investor AB, Class B 160,000 4.367 .14
Tenneco Inc. 75,000 3.600 .11
Swire Pacific Ltd., Class A 350,000 2.704 .08
Preussag AG 8,000 2.380 .07
HEALTH & PERSONAL CARE- 5.25%
Eli Lilly and Co. 380,000 28.357 .89
AB Astra, Class A 700,000 20.540 .82
AB Astra, Class B 195,000 5.602
Glaxo Holdings PLC 2,150,000 24.821 .78
American Home Products Corp. 321,000 23.634 .74
Bausch & Lomb Inc. 550,000 22.344 .70
Merck & Co., Inc. 385,000 18.143 .57
Bristol-Myers Squibb Co. 175,000 11.616 .36
Warner-Lambert Co. 75,000 6.216 .19
Upjohn Co. 100,000 3.638 .11
Abbott Laboratories 50,000 2.000 .06
Baxter International Inc. 30,000 1.046 .03
UTILITIES: ELECTRIC & GAS- 4.87%
National Power PLC 3,560,000 26.401 .83
Eastern Group PLC 2,275,000 23.194 .73
Southern Electric PLC 2,170,000 22.571 .71
Entergy Corp. 590,000 14.602 .46
British Gas PLC (American Depositary 150,000 7.275 .37
Receipts)
British Gas PLC 900,000 4.323
Hongkong Electric Holdings Ltd. 3,173,500 11.283 .35
General Public Utilities Corp. 347,000 10.410 .32
Iberdrola, SA 1,000,000 7.018 .22
Hong Kong and China Gas Co. Ltd. 3,575,120 5.801 .18
Scottish Power PLC 1,000,000 5.304 .17
China Light & Power Co. Ltd. 932,000 5.097 .16
NorAm Energy Corp. 683,600 4.529 .14
Detroit Edison Co. 150,000 4.519 .14
Union Electrica Fenosa, SA 500,000 2.237 .07
Australian Gas Light Co. 221,900 .686 .02
BUSINESS & PUBLIC SERVICES- 4.10%
North West Water Group PLC 2,245,000 20.873 .65
General Motors Corp., Class E 300,000 12.750 .40
Havas SA 141,485 11.540 .36
Southern Water PLC 1,088,444 11.045 .35
Deluxe Corp. 282,800 9.014 .28
American Water Works Co., Inc. 300,000 8.963 .28
Autopistas de Mare Nostrum, SA Concesionaria
del Estado 720,000 8.717 .27
Autopistas, Concesionaria Espanola, SA 869,400 8.179 .26
Welsh Water PLC 750,000 7.694 .24
Hutchison Delta Finance Ltd., 7.00% convertible
debentures 2001 /1/ $6,000,000 6.446 .20
WMX Technologies, Inc. 225,000 6.131 .19
Alco Standard Corp. 80,000 5.730 .18
Thames Water PLC 546,896 4.429 .14
True North Communications Inc. (Formerly
Foote, Cone & Belding Communications, Inc.) 191,000 3.772 .12
Omnicom Group Inc. 50,000 2.881 .09
Eurotunnel SA, units, comprised of one share
of Eurotunnel SA ordinary and one share of
Eurotunnel PLC ordinary /2/ 640,000 1.821 .06
Cross-Harbour Tunnel Co., Ltd. 544,000 1.069 .03
INSURANCE- 3.89%
Internationale Nederlanden Groep NV 1,481,632 80.410 2.66
Internationale Nederlanden Groep NV, Warrants
expire 2001 /2/ 2,000,000 4.458
National Mutual Asia Ltd. 19,308,000 12.232 .38
GIO Australia Holdings Ltd. 5,711,167 11.329 .35
Allstate Corp. 150,000 4.519 .14
Societe Centrale Union des Assurances de
Paris 135,000 3.797 .12
Yasuda Fire and Marine Insurance Co., Ltd. 470,000 3.189 .10
United Friendly Group PLC, Class B 250,800 2.338 .07
Prudential Corp. PLC 406,576 2.201 .07
FOREST PRODUCTS & PAPER- 3.34%
James River Corp. of Virginia 450,000 12.150 .72
James River Corp. of Virginia, DECS convertible
preferred shares 450,000 10.856
Champion International Corp. 430,000 19.941 .62
Sonoco Products Co. 735,000 18.191 .57
Jefferson Smurfit Corp. /2/ 1,132,300 15.003 .47
Kymmene Corp. 231,500 6.475 .34
Kymmene Corp., 8.25% convertible debentures 2043 $18,000,000 4.515
MAYR-MELNHOF Karton AG /2/ 145,000 8.774 .27
Fletcher Challenge Ltd. 1,920,000 5.102 .18
Fletcher Challenge Forests Division
(American Depositary Receipts) 40,070 .541
Federal Paper Board Co., Inc. 113,400 3.686 .12
Carter Holt Harvey Ltd. 616,770 1.553 .05
ENERGY SOURCES- 3.28%
Phillips Petroleum Co. 775,000 28.094 .88
YPF SA, Class D (American Depositary Receipts) 1,346,100 27.259 .85
Royal Dutch Petroleum Co. 85,000 10.647
Royal Dutch Petroleum Co. (New York
Registered Shares) 50,000 6.337 .72
"Shell" Transport and Trading Co., PLC
(New York Registered Shares) 80,000 5.980
TOTAL, Class B 116,495 7.231 .23
Occidental Petroleum Corp. 250,000 5.750 .18
Amoco Corp. 75,000 5.128 .16
Petrofina SA 10,700 3.219 .10
Burmah Castrol PLC 203,972 3.003 .09
Esso SAF 20,000 2.312 .07
AUTOMOBILES- 3.03%
Ford Motor Co. Class A 950,000 27.787 .87
Regie Nationale des Usines Renault, SA 715,400 23.344 .73
Bayerische Motoren Werke AG 22,000 11.869 .50
Bayerische Motoren Werke AG, preferred shares 10,254 4.003
Porsche N/V, preferred shares 20,000 8.714 .27
General Motors Corp. 178,000 8.544 .27
Daimler-Benz AG 6,600 3.201 .18
Daimler-Benz AG (American Depositary Receipts) 55,000 2.674
Toyota Motor Corp. 235,000 4.563 .14
Peugeot SA 13,500 2.040 .06
Volkswagen AG, preferred shares 1,900 .409 .01
MACHINERY & ENGINEERING- 2.69%
Mannesmann AG 84,700 24.831 .78
Bremer Vulkan Verbund AG 335,000 19.035 .60
Bombardier Inc., Class B 700,000 15.523 .49
Caterpillar Inc. 216,000 13.014 .41
Triplex Lloyd PLC 2,298,461 5.420 .17
Sandvik AB, Class A 75,000 1.315 .08
Sandvik AB, Class B 70,000 1.228
Zardoya Otis, SA 19,613 2.230 .07
Atlas Copco AB, Class A 125,000 1.825 .06
Siu Fung Ceramics Holdings Ltd. 6,000,000 .869 .03
CHEMICALS- 2.48%
Praxair, Inc. 667,000 16.592 .52
Monsanto Co. 175,000 14.569 .46
Sherwin-Williams Co. 369,000 13.561 .42
Akzo NV 68,000 8.289 .26
BTP PLC 1,324,166 5.783 .18
European Vinyls Corp. /2/ 120,000 5.441 .17
L'Air Liquide 30,314 4.765 .15
Airgas, Inc. /2/ 177,000 4.602 .14
DSM NV 30,000 2.555 .08
BASF AG 8,250 1.768 .06
Bayer AG 4,300 1.040 .03
Hoechst AG 700 .151 .01
BEVERAGES & TOBACCO- 2.24%
Philip Morris Companies Inc. 370,000 26.964 .84
Lion Nathan Ltd. 5,000,000 10.562 .33
Seagram Co. Ltd. 312,200 9.366 .29
American Brands, Inc. 200,000 8.075 .25
UST Inc. 200,000 5.975 .19
Coca-Cola Amatil Ltd. 777,444 4.632 .15
Heineken Holdings NV, Class A 25,000 3.246 .10
RJR Nabisco Holdings Corp. 100,000 2.850 .09
FOOD & HOUSEHOLD PRODUCTS- 2.07%
Reckitt & Colman PLC 2,978,125 31.189 .98
Clorox Co. 150,000 8.981 .28
Nestle SA 8,452 8.554 .27
Cadbury Schweppes PLC 1,100,000 8.288 .26
Hazlewood Foods PLC 3,000,000 5.050 .16
Unilever NV 30,000 3.743 .12
MERCHANDISING- 1.90%
Tesco PLC 6,260,000 29.326 .92
WHSmith Group PLC, Class A 1,150,000 6.419 .20
ShopKo Stores, Inc. 475,000 5.106 .16
Duty Free International, Inc. 470,000 4.759 .15
Giant Food Inc., Class A 150,000 4.313 .14
Toys "R" Us, Inc. /2/ 150,000 3.787 .12
Amway Japan Ltd. 79,000 2.544 .08
Delhaize "Le Lion" SA 50,000 2.338 .07
TJX Companies, Inc. 150,000 2.006 .06
INDUSTRIAL COMPONENTS- 1.88%
Goodyear Tire & Rubber Co. 400,000 16.900 .53
Compagnie Generale des Etablissements
Michelin, Class B 250,000 11.416 .37
Compagnie Generale des Etablissements
Michelin, convertible preferred shares 8,333 .435
Morgan Crucible Co. PLC 2,037,500 11.292 .35
Federal-Mogul Corp. 572,500 10.305 .32
BICC PLC 750,000 3.984 .12
Continental AG 15,800 2.421 .08
AB SKF, Class B 100,000 1.952 .06
Magna International Inc., Class A 38,000 1.444 .05
RECREATION & OTHER CONSUMER PRODUCTS- 1.84%
THORN EMI PLC 2,286,000 45.014 1.41
Hasbro, Inc. 250,000 8.813 .28
PolyGram NV (New York Registered Shares) 84,000 4.904 .15
METALS: NONFERROUS- 1.58%
Teck Corp., 3.75% convertible debentures 2006 $12,950,000 12.626 .40
Noranda Inc. 625,000 12.149 .38
Pechiney 172,000 11.037 .35
Inco Ltd. 425,000 10.625 .33
Phelps Dodge Corp. 40,200 2.216 .07
Indian Aluminum Co. Ltd. (Global Depositary
Receipts) /1/ 150,000 1.688 .05
MISCELLANEOUS MATERIALS & COMMODITIES- 1.34%
English China Clays PLC 2,830,000 17.212 .54
Compagnie de Saint-Gobain 104,115 13.047 .41
TRINOVA Corp. 200,000 6.800 .21
Pilkington PLC 2,000,000 5.860 .18
REAL ESTATE- 1.32%
Sun Hung Kai Properties Ltd. 1,400,000 10.136 .32
Tai Cheung Holdings Ltd. 9,239,570 9.437 .29
St Lukes Group Ltd., convertible preferred 7,000,000 4.790 .23
shares
St Lukes Group Ltd. 3,500,000 2.743
Land Securities PLC 600,000 5.941 .19
Westfield Trust 3,135,000 5.578 .18
Hysan Development Co., Ltd. 1,474,000 3.459 .11
LEISURE & TOURISM- 1.21%
Forte PLC 5,855,442 21.479 .67
Shangri-La Asia Ltd., 2.875%
convertible debentures 2000 /1/ $13,910,000 11.128 .35
Euro Disney SCA, 6.75% convertible debentures $30,002,000 4.832 .15
2001
Mandarin Oriental International Ltd. 1,056,313 1.268 .04
BROADCASTING & PUBLISHING- 1.12%
Carlton Communications PLC 700,000 10.516 .33
CANAL+ 58,785 7.865 .25
Elsevier NV 575,000 6.663 .21
News International PLC 1,000,000 4.812 .15
TeleWest Communications PLC (American Depositary
Receipts) /2/ 178,000 4.561 .14
Tele-Communications, Inc., Class A /2/ 60,000 1.260 .04
FINANCIAL SERVICES- 1.02%
Household International, Inc. 225,000 11.109 .35
ADVANTA Corp., Class A 250,000 9.688 .30
American Express Co. 150,000 5.344 .17
Federal National Mortgage Assn. 50,000 4.650 .14
Beneficial Corp. 40,000 1.780 .06
APPLIANCES & HOUSEHOLD DURABLES- 0.72%
Whirlpool Corp. 240,000 13.710 .43
AB Electrolux, Class B 200,000 9.253 .29
TEXTILES & APPAREL- 0.65%
Courtaulds Textiles PLC 2,391,500 19.045 .60
Delta Woodside Industries, Inc. 185,000 1.503 .05
TRANSPORTATION: RAIL & ROAD- 0.58%
TNT Ltd., convertible preferred shares 9,043,900 13.520
TNT Ltd. /2/ 524,862 .762 .44
CSX Corp. 60,000 4.575 .14
TRANSPORTATION: AIRLINES- 0.53%
Air New Zealand Ltd., Class B 3,630,000 12.057 .38
British Airways PLC 500,000 3.263 .10
Cathay Pacific Airways Ltd. 1,035,000 1.505 .05
DATA PROCESSING & REPRODUCTION- 0.52%
Danka Business Systems PLC, 6.75% convertible
debentures 2002 /1/ $10,000,000 10.450 .33
Apple Computer, Inc. 149,900 6.221 .19
METALS: STEEL- 0.51%
Allegheny Ludlum Corp. 450,000 8.887 .28
Thyssen AG /2/ 30,000 5.671 .18
Nippon Denro Ispat Ltd., 3.00% convertible
debentures 2001 /1/ $2,800,000 1.722 .05
ENERGY EQUIPMENT- 0.42%
Schlumberger Ltd. 205,000 13.325 .42
BUILDING MATERIALS & COMPONENTS- 0.36%
Southdown, Inc., Series D, convertible
preferred
shares 150,000 6.038 .19
Medusa Corp., 6.00% convertible debentures
2003 $5,750,000 5.506 .17
WHOLESALE & INTERNATIONAL TRADE- 0.35%
Sime Darby Hong Kong Ltd. 8,588,000 11.214 .35
AEROSPACE & MILITARY TECHNOLOGY-0.27%
Celsius Industries Corp., Class B 590,000 8.656 .27
TRANSPORTATION: SHIPPING- 0.22%
Shun Tak Holdings Ltd. 10,632,471 7.148 .22
ELECTRICAL & ELECTRONIC- 0.19%
BBC Brown Boveri Ltd., Class A 3,500 3.581 .11
Telefonaktiebolaget LM Ericsson, Class B 33,500 2.400 .08
ELECTRONIC COMPONENTS- 0.03%
Motorola, Inc. 15,000 .898 .03
MISCELLANEOUS- 1.41%
Other equity-type securities in initial
period of acquisition 45.007 1.41
TOTAL EQUITY-TYPE SECURITIES (cost: -------- --------
$2,433.212 million) 2,771.404 86.77
-------- --------
------------------------------------------ -------------
Principal
Amount
Bonds and Notes (Millions)
------------------------------------------ -------------
INDUSTRIALS- 0.71%
Container Corp. of America 11.25% May 2004 $6.000 $6.420 .23
Container Corp. of America 9.75% April 2003 1.000 1.013
Fort Howard Corp. 10.00% March 2003 1.500 1.493 .18
Fort Howard Corp. 8.25% February 2002 4.500 4.230
Venezolana de Cementos, SACA Eurobond
9.25% November 1996 6.000 5.160 .16
CEMEX, SA 8.875% June 1998 3.000 2.565 .08
AB SKF 7.625% July 2003 2.000 2.049 .06
NEW ZEALAND GOVERNMENT- 0.69%
New Zealand 8.00% July 1998 NZ$33.250 22.163 .69
ARGENTINIAN GOVERNMENT- 0.69%
Argentina Eurobond 5.00% March 2023 /3/ $30.250 19.776 .69
Argentina Eurobond 7.3125% March 2005 /3/ 4.260 2.130
CANADIAN GOVERNMENT- 0.43%
Canada 6.250% February 1998 C$13.200 9.398 .43
Canada 7.50% July 1997 6.000 4.403
AUSTRALIAN GOVERNMENT- 0.18%
Australia 12.50% January 1998 A$7.100 5.653 .18
SUPRANATIONAL- 0.05%
International Bank for Reconstruction and
Development 12.50% July 1997 NZ$2.000 1.442 .05
-------- --------
TOTAL BONDS AND NOTES (cost: $83.468 million) 87.895 2.75
-------- --------
------------------------------------------ -------------
Principal
Amount
Short-Term Securities (Millions)
------------------------------------------ -------------
CORPORATE SHORT-TERM NOTES- 8.11%
Exxon Imperial U.S. Inc. 5.93%-5.97% due
6/26-7/7/95 39.900 39.667 1.24
Unilever Capital Corp. 5.97% due 6/9/95 36.200 36.146 1.13
BAYER CORP. 5.92%-5.97% DUE 6/19-6/27/95 26.500 26.389 .83
ABN AMRO North America Finance Inc.
5.93% due 6/29/95 26.000 25.875 .81
Arco Coal Australia Inc. 5.93%-6.02% due
6/7-7/21/95 25.490 25.377 .79
Glaxo Holdings PLC 5.95% due 6/30/95 20.000 19.904 .62
Canadian Wheat Board 6.02% due 6/6/95 18.100 18.082 .57
Halifax Building Society 6.03% due 6/2/95 16.900 16.894 .53
Sony Capital Corp. 5.95% fur 6/8/95 16.300 16.278 .51
Siemens Corp. 5.94% due 6/1/95 15.000 14.997 .47
Electronic Data Systems Corp. 5.98% due 6/1/95 10.975 10.973 .34
Electricite de France 5.95%-6.02% due
6/19-6/28/95 8.500 8.466 .27
CERTIFICATES OF DEPOSIT- 1.25%
Swiss Bank Corp. 6.01% due 7/21/95 40.000 40.000 1.25
FEDERAL AGENCY DISCOUNT NOTES- 0.78%
Federal Home Loan Mortgage Corp. 5.95% due
6/16/95 12.700 12.667 .40
Federal National Mortgage Assn. 5.90% due
6/13/95 12.300 12.274 .38
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $323.991
million) 323.989 10.14
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $2,840.671
million) 3,183.288 99.66
Excess of cash and receivables over payables 10.683 .34
-------- ------
NET ASSETS $3,193.971 100.00
=============================================== ========== ==========
</TABLE>
/1/ Purchased in a private placement transaction; resale to the public may
require registration or may extend only to qualified institutional buyers
/2/ Non-income-producing securities
/3/ Coupon rate may change periodically.
See Notes to Financial Statements
Companies Added to the Portfolio Since
November 30, 1994
=======================================
Autopistas del Mare Nostrum
Bank of Ayudhya
Bremer Vulkan Verbund
Cadbury Schweppes
Celsius Industries
Champion International
Chemical Banking
Danka
Esso
Euro Disney
Ford Motor
International CableTel
Kymmene
Monsanto
National Bank of Canada
NorAM Energy
Noranda
Occidental Petroleum
Porsche
RJR Nabisco Holdings
Sherwin-Williams
Toys "R" Us
TRINOVA
UST
Westfield Trust
Whirlpool
YPF
Companies Eliminated From the Portfolio Since
November 30, 1994
==============================================
Alcan Aluminium
BCE
Burswood Property Trust
CAMAS
Chevron
Commonwealth Bank of Australia
E.I. du Pont de Nemours
Enersis
Gamma Holding
Honeywell
John H. Harland
Kleinwort Benson Group
Nissan Motor
Refuge Group
Rhone-Poulenc
Shaw Brothers
Sun Co.
Tambrands
Tokio Marine and Fire Insurance
20th Century Industries
Willis Corroon Group
Xerox
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
at May 31, 1995 (dollars in millions)
(unaudited)
<TABLE>
<CAPTION>
----------------------------------------- --------------- ---------------
Assets:
<S> <C> <C>
Investment securities at market
(cost: $2,840.671) $3,183.288
Cash .687
Receivables for--
Sales of investments $16.520
Sales of fund's shares 8.233
Dividends and accrued interest 17.626 42.379
--------------- ---------------
3,226.354
Liabilities:
Payables for--
Purchases of investments 26.016
Repurchases of fund's shares 3.315
Management services 1.253
Accrued expenses 1.799 32.383
--------------- ---------------
Net Assets at May 31, 1995--
Equivalent to $19.03 per share on
167,804,450 shares of $0.01 par value
capital stock outstanding (authorized
capital stock - 200,000,000 shares) $3,193.971
===============
Statement of Operations (dollars in
for the six months ended May 31, 1995 (unaudited) millions)
--------------------------------------------- --------------- ---------------
Investment Income:
Income:
Dividends $ 44.927
Interest 17.244 $ 62.171
------------
Expenses:
Management services fee 6.899
Distribution expenses 3.097
Transfer agent fee 1.607
Reports to shareholders .304
Registration statement and prospectus .583
Postage, stationery and supplies .324
Directors' fees .054
Auditing and legal fees .037
Custodian fee .673
Taxes other than federal income tax .050
Other expenses .029 13.657
-------------- --------------
Net investment income 48.514
--------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 12.076
Net increase in unrealized appreciation on investments 236.604
Net realized gain and
increase in unrealized appreciation
on investments 248.680
---------------
Net Increase in Net Assets Resulting $297.194
from Operations ===============
---------------------------------------------- --------------- ---------------
(dollars in
millions)
Statement of Changes in Net Assets Six months
ended Year ended
5/31/95* 11/30/94
---------------------------------------------- --------------- ---------------
Operations:
Net investment income $ 48.514 $ 72.772
Net realized gain on investments 12.076 44.965
Net increase in unrealized appreciation
on investments 236.604 .284
--------------- ---------------
Net increase in net assets
resulting from operations 297.194 118.021
--------------- ---------------
Dividends and Distributions Paid to Shareholders:
Dividends from net investment income (43.277) (59.675)
Distributions from net realized gain on investment (45.494) .000
--------------- ---------------
Total dividends and distributions (88.771) (59.675)
Capital Share Transactions:
Proceeds from shares sold: 18,322,477
and 71,171,194 shares, respectively 326.322 1,389.345
Proceeds from shares issued in reinvestment
of net investment income dividends and distributions
of net realized gain on investments:
4,839,092 and 3,077,212 shares, respectively 83.797 54.546
Cost of shares repurchased: 11,720,965
and 13,345,775 shares, respectively (208.925) (238.871)
--------------- ---------------
Net increase in net assets
resulting from capital share
transactions 201.194 1,205.020
--------------- ---------------
Total Increase in Net Assets 409.617 1,263.366
Net Assets:
Beginning of period 2,784.354 1,520.988
--------------- ---------------
End of period (including undistributed
net investment income: $23.891
and $18.654, respectively) $3,193.971 $2,784.354
=============== ===============
*Unaudited
See Notes to Financial Statements
</TABLE>
<PAGE>
Notes to Financial Statements (UNAUDITED)
1. Capital World Growth and Income Fund, Inc. ("the fund") is registered under
the Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the period or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date.
Bonds and notes are valued at prices obtained from a bond pricing service
provided by a major dealer in bonds, 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 of their representative quoted bid
and asked prices or, if such prices are not available, at the mean of such
prices for securities of comparable maturity, quality, and type. Securities
denominated in non-U.S. currencies are generally valued on the basis of bid
quotations.
Short-term securities with original or remaining maturities in excess of 60
days are valued at the mean of their quoted bid and asked prices. Short-term
securities with 60 days or less to maturity are valued at amortized cost, which
approximates market value. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities and other assets and liabilities denominated in
non-U.S. currencies are recorded in the financial statements after translation
into U.S. dollars utilizing rates of exchange on the last business day of the
period. Purchases and sales of investment securities, income, and expenses are
calculated using the prevailing exchange rate as accrued. The fund does not
identify the portion of each amount shown in the fund's statement of operations
under the caption "Realized Gain and Unrealized Appreciation on Investments"
that arises from changes in non-U.S. currency exchange rates.
Prepaid organization expenses are amortized over the estimated period of
benefit, not to exceed five years from commencement of operations. In the
event that Capital Research and Management Company (CRMC), the fund's
investment adviser, redeems any of its original shares prior to the end of the
five-year period, the proceeds of the redemption payable with respect to such
shares shall be reduced by the pro rata share (based on the proportionate share
of the original shares redeemed to the total number of original shares
outstanding at the time of such redemption) of the unamortized prepaid
organization expenses as of the date of such redemption. In the event that the
fund liquidates prior to the end of the five-year period, CRMC shall bear any
unamortized prepaid organization expenses.
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 $673,000 includes $20,000 that was paid by these credits
rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of May 31, 1995, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $342,617,000, of which $429,471,000
related to appreciated securities and $86,854,000 related to depreciated
securities. During the six months ended May 31, 1995, the fund realized, on a
tax basis, a net capital gain of $11,663,000 on securities transactions. Net
gains related to non-U.S. currency transactions of $413,000 were treated as an
adjustment to ordinary income for federral income tax purposes. The cost of
portfolio securities for book and federal income tax purposes was
$2,840,671,000 at May 31, 1995.
3. The fee of $6,899,000 for management services was paid pursuant to an
agreement with CRMC, with which certain officers and Directors of the fund are
affiliated. The Investment Advisory and Service Agreement provides for monthly
fees, accrued daily, based on an annual rate of 0.60% of the first $500 million
of average net assets; 0.50% of such assets in excess $500 million but not
exceeding $1.0 billion; 0.46% of such assets in excess of $1.0 billion but not
exceeding $1.5 billion; 0.43% of such assets in excess of $1.5 billion but not
exceeding $2.5 billion; 0.41% of such assets in excess of $2.5 billion but not
exceeding $4.0 billion; 0.40% of such assets in excess of $4.0 billion but not
exceeding $6.5 billion; and 0.395% of such assets in excess of $6.5 billion.
Pursuant to a Plan of Distribution, the fund may expend up to 0.30% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the six months ended May 31, 1995,
distribution expenses under the Plan were $3,097,000. As of May 31, 1995,
accrued and unpaid distribution expenses were $1,428,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $1,607,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $1,456,000 (after
allowances to dealers) as its portion of the sales charges paid by purchasers
of the fund's shares. Such sales charges are not an expense of the fund and,
hence, are not reflected in the accompanying statement of operations.
Directors of the fund 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 May 31, 1995, aggregate amounts deferred were $41,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors 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.
4. As of May 31, 1995, accumulated undistributed net realized gain on
investments was $10,917,000 and additional paid-in capital was $2,814,412,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $497,018,000 and $288,276,000, respectively, during
the six months ended May 31, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
six months ended May 31, 1995, such non-U.S. taxes were $4,430,000. Net
realized currency gains on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds were $713,000 for the six months ended May 31,
1995.
<PAGE>
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
Six months Year Period
Ended Ended 3/26/93 /2/
5/31/95 /1/ 11/30/94 to 11/30/93
---------- ---------- ----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $17.81 $17.00 $15.08
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .29 .52 .29
Net realized and unrealized gain on investments 1.49 .75 1.86
---------- ---------- ----------
Total income from investment operations 1.78 1.27 2.15
---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income (.27) (.46) (.23)
Distributions from net realized gains (.29) --
---------- ---------- ----------
Total distributions (.56) (.46) (.23)
---------- ---------- ----------
Net Asset Value, End of Period $19.03 $17.81 $17.00
========== ========== ==========
Total Return /3/ 10.32% /4/ 7.51% 14.39% /4/
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $3,194 $2,784 $1,521
Ratio of expenses to average net assets .46% /4/ .87% .62% /4/
Ratio of net income to average net assets 1.65% /4/ 3.11% 2.01% /4/
Portfolio turnover rate 11.11% /4/ 18.66% 2.71% /4/
</TABLE>
/1/ Unaudited
/2/ Commencement of operations
/3/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
/4/ Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
<PAGE>
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER, CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers
400 South Hope Street
Los Angeles, California 90071-2899
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of Capital World Growth and
Income Fund, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after September 30, 1995, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA MNC/GRS/2651
Lit. No. WGI-013-0795
Printed on recycled paper
[The American Funds Group (R)]
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