CAPITAL WORLD GROWTH AND INCOME FUND
Semi-annual report for the six months ended May 31, 1996
[The American Funds Group(R)]
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, 1996 (the
most recent calendar quarter), assuming payment of the maximum 5.75% sales
charge at the beginning of the stated periods (sales charges are lower for
accounts of $50,000 or more): Since inception on 3/26/93: +52.71%, or +13.85% a
year; 12 months: +12.32%. The fund's 30-day yield as of June 30, 1996,
calculated in accordance with the Securities and Exchange Commission formula,
was 2.82%. Returns for individual stock markets were computed by Capital
International Perspective S.A. and included in the unmanaged MSCI World Index.
FUND RESULTS IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. 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.
FELLOW SHAREHOLDERS:
CAPITAL WORLD GROWTH AND INCOME FUND CONTINUED TO PROVIDE YOU WITH GROWTH OF
CAPITAL AND INCOME DURING THE FIRST HALF OF FISCAL 1996 THROUGH ITS INVESTMENTS
IN THE STOCKS OF ATTRACTIVE COMPANIES BASED AROUND THE WORLD.
The fund paid two dividends totaling 29 cents a share as well as two
capital gain distributions totaling 34 cents a share over the six months ended
May 31. If, like most shareholders, you reinvested these distributions, the
value of your investment in the fund increased 10.7%.
By comparison, the unmanaged Morgan Stanley Capital International (MSCI)
World Index - which measures the world's major stock markets, including the
U.S. - rose 9.9% on a reinvested basis.
The fund's solid progress reflects a worldwide advance in stock prices.
During the six-month period, virtually all of the world's major markets had
positive results. A number posted double-digit gains in local currency and in
U.S. dollars, despite a strengthening in the value of the dollar against many
foreign currencies.
BROAD GEOGRAPHIC DIVERSIFICATION
The fund had sizable investments in many markets that were strong:
IN THE UNITED STATES, the country with the largest concentration of fund
assets, stocks rose 11.9% with dividends reinvested, as measured by the MSCI
USA Index. During the period, the U.S. economic expansion, now in its sixth
year, gained momentum. Corporate profits were strong, inflation remained low,
and the stock market advanced despite a rise in longer term interest rates.
Elsewhere in North America, the Canadian stock market rose 14.9% when measured
in Canadian dollars and 13.8% when those gains were translated into U.S.
dollars.
IN EUROPE, stock markets moved higher as central banks cut short-term
interest rates and investors anticipated a pickup in business conditions. There
were also corporate restructurings throughout the region, which should help
improve competitiveness and profitability, particularly as economic activity
improves. The fund had substantial investments in France (+18.6% in local
currency, +14.1% in U.S. dollars over the six months ended May 31), the
Netherlands (+23.3% in local currency, +16.5% in U.S. dollars) and Sweden
(+13.8% in local currency, +11.0%
WHERE CAPITAL WORLD GROWTH AND INCOME FUND'S ASSETS ARE INVESTED
(equity-type holdings except where indicated, as of 5/31/96)
EQUITY-TYPE SECURITIES 88.8%
EUROPE 37.8%
United Kingdom - 12.6%
Netherlands - 5.6
France - 5.5
Sweden - 4.2
Italy - 2.2
Germany - 2.1
Spain - 1.5
Finland - .7
Denmark - .6
Portugal - .6
Switzerland - .6
Norway - .5
Luxembourg - .4
Belgium - .3
Ireland - .2
Other Europe - .2
Other Regions 1.9%
BONDS, NOTES, CASH & EQUIVALENTS 11.2%
THE AMERICAS 33.7%
United States - 27.5%
Canada - 4.5
Brazil - .7
Mexico - .6
Argentina - .3
Other Latin America - .1
ASIA/PACIFIC RIM 15.4%
Australia - 5.9%
Hong Kong - 3.7
New Zealand - 2.8
Japan - 2.3
Philippines - .3
Thailand - .3
Other Asia - .1
in U.S. dollars). In the United Kingdom, the fund's second largest country
concentration, returns were more modest (+4.6% in local currency, +6.0% in U.S.
dollars) as investors faced uncertainty over whether the country will be led by
a Conservative or Labour government. Taken together, our European stock
holdings represent the largest portion of the fund's investments.
IN ASIA, we benefited from the fact that the fund had relatively few
investments in Japan. Although the economy there showed signs of recovering
from a long downturn and the stock market rallied, a weaker yen sharply reduced
returns to U.S. investors. Over the period, Japanese stocks rose +12.7% in
local currency, +5.8% in U.S. dollars. Most other markets throughout Asia and
the Pacific were more rewarding in U.S. dollar terms.
While the fund invests, for the most part, in established companies in the
world's largest stock markets, we also held selected investments in leading
companies in developing countries such as Argentina, Brazil and Mexico, where
stock prices rebounded sharply following severe declines. Our holdings in Latin
America accounted for about 2% of the fund's net assets at the close of the
fiscal period.
BROAD INDUSTRY DIVERSIFICATION
All in all, the 271 equity-type securities that were held over the course
of the six-month period were diversified across 30 countries on six continents.
Of these, 205 rose in price, 65 declined and one was unchanged. In addition to
the fund's broad geographic diversification, holdings were well diversified by
industry.
The portfolio listing that begins on page 5 shows investments in 36
industries, of which banking, telecommunications, and health & personal care
remain the three largest. While stocks in these industries tended to have less
than stellar results, many of those held by the fund did well. The fund's
largest individual stock holding, Internationale Nederlanden Groep, is active
in banking and insurance. Its stock price rose 30.3%. Telecom Italia, an
Italian phone company, had the largest price gain of any stock in the
portfolio, rising 49.3%. Another large holding, Astra, the Swedish
pharmaceutical company, gained 21.5%. (Price changes for individual stocks are
in U.S. dollars.)
Stocks in other industries that made particularly strong contributions to
results include energy-related issues such as Schlumberger (Netherlands
Antilles, +31.3%) and, within the chemicals industry, industrial gas suppliers
such as Praxair (U.S., +39.5%).
On the other side of the ledger, many of the fund's investments in
electric and gas utilities were negatively affected by competitive pressures
and regulatory concerns. British Gas declined 21.0%, making it the worst
performing stock over the six-month period. James River Corp. of Virginia, a
manufacturer of forest products and paper, declined 20.6% as stock prices in
that industry followed paper prices lower.
A NOTE ABOUT DIVIDENDS
Capital World Growth and Income Fund's two dividends of 14 cents and 15
cents a share over the six months ended May 31, when combined with the
dividends paid over the prior six-month period, bring the fund's 12-month
income return to 3.4%.
On June 10, after the end of the reporting period, the fund paid a
dividend of 25 cents per share. As many of you know, the fund's dividends vary
from quarter to quarter. This is because companies outside North America
usually pay dividends annually or semi-annually (as opposed to quarterly, which
is customary in the United States). Dividends paid by the fund in September,
December and March are generally smaller than those paid in June.
While it is not one of the fund's specific objectives, Capital World
Growth and Income Fund has managed to generate successively higher dividends
each year. Over the long haul, dividends have historically accounted for a
large portion of the total return from stocks.
RESULTS SINCE INCEPTION
(3/26/93 - 5/31/96, with dividends reinvested)
Average
Annual
Total Compound
Return Return
Capital World Growth and
Income Fund 62.6% 16.5%
S&P 500 Index 61.8 16.3
MSCI WORLD Index 56.7 15.2
MSCI EAFE Index 51.1 13.8
Lipper average of global funds 55.1 14.7
The MSCI World Index measures major world markets, including the U.S. and
Canada. The MSCI EAFE(R) (Europe, Australasia, Far East) Index tracks stocks in
all major markets except the U.S. and Canada. Both indexes are unmanaged.
Lipper results do not reflect the effect of sales charges.
A LOOK AT LIFETIME RESULTS
Capital World Growth and Income Fund was launched in March 1993 in the
belief that a professionally managed global stock portfolio with income and
growth objectives can provide solid investment returns over time. Three years
is a short period in the life of a long-term investment. Nonetheless, it may be
worth noting that since its inception, the fund's research-driven and
value-oriented approach and its flexibility to search out attractive
opportunities worldwide have enabled it to outpace the major U.S.,
international and world market indexes, as well as the average returns of other
global mutual funds.
We continue to uncover what we think are promising opportunities in
various industries and countries around the world. We recognize, however, that
many market valuations are high by historic standards and that at some point
setbacks are inevitable. Accordingly, we believe it is prudent and important to
maintain a long-term perspective - and we would encourage our shareholders to
do the same.
We look forward to reporting to you again in six months.
Cordially,
Thierry Vandeventer Paul G. Haaga, Jr.
Chairman of the Board President
July 10, 1996
<TABLE>
CAPITAL WORLD GROWTH AND INCOME FUND
INVESTMENT PORTFOLIO, MAY 31, 1996 Unaudited
Largest Industry Holdings
Equity-Type Securities 88.81%
Banking 14.31%
Telecommunications 8.74%
Health & Personal Care 5.11%
Business & Public Services 4.50%
Energy Sources 4.34%
Bonds and Notes 2.19%
Cash Equivalents 9.00%
<S> <C> <C> <C>
Percent
of Net
Largest Individual Holdings Assets
Internationale Nederlanden Groep Netherlands 2.78
Telecom Corp. of New Zealand New Zealand 1.67
Koninklije PTT Nederland Netherlands 1.27
Australia and New Zealand
Banking Group Ltd. Australia 1.23
AB Astra Sweden 1.20
National Power United Kingdom 1.15
THORN EMI United Kingdom 1.13
First Union USA 1.09
Hong Kong Telecommunications Hong Kong 1.01
Mannesmann Germany .96
- ------------------------------------------- ---------- ---------- ----------
Equity-Type Securities Shares or Market Percent
(common and preferred stocks and convertible Principal Value of Net
debentures) Amount (Millions) Assets
- ------------------------------------------- ---------- ---------- ----------
BANKING- 13.09%
Australia and New Zealand Banking Group Ltd. (Australia) 11571382 $53.188 1.23%
First Union Corp. (USA) 775000 47.372 1.09
Bank of New York Co., Inc. (USA) 770000 39.944 .92
ABN AMRO Holding NV (Netherlands) 711279 39.321 .91
Advance Bank Australia Ltd. (Australia) 8641773 37.101 .86
National Australia Bank Ltd. (Australia) 3,550,826 33.294 .77
Barclays PLC (United Kingdom) 2450000 28.528 .66
Chase Manhattan Corp. (New) (formerly Chemical Banking
Corp.) (USA) 350000 24.500 .57
Royal Bank of Canada (Canada) 1,000,000 23.869 .55
First Chicago NBD Corp. (formerly First Chicago Corp.)
(USA) 452500 19.740 .46
Istituto Mobiliare Italiano SpA (American Depositary
Receipts) (Italy) 600000 14.925
Istituto Mobiliare Italiano SpA 500000 4.094 .44
Credit Commercial de France (France) 375000 18.111 .42
Compagnie de Suez (France) 450000 17.413 .40
Safra Republic Holdings SA (Luxembourg) 133000 17.157 .40
Banc One Corp. (USA) 440000 16.280 .38
National City Corp. (USA) 400000 14.250 .33
Banco de Santander, SA (Spain) 211800 9.689
Banco de Santander, SA (American Depositary Receipts) 88200 3.991 .32
Westpac Banking Corp. (Australia) 2625164 12.255 .28
MBL International Finance, 3.00% convertible debentures
2002 (Bermuda) $10,100,000 11.880 .27
Bangkok Bank Public Co. Ltd., 3.25% convertible
debentures 2004 (formerly Bangkok Bank Ltd.) (Thailand) $9,000,000 10.890 .25
Stadshypotek AB, Class A (Sweden) 500000 10.279 .24
Boatmen's Bancshares, Inc. (USA) 250000 10.109 .23
Wilmington Trust Corp. (USA) 300000 9.900 .23
Allied Irish Banks, PLC (Ireland) 1730000 9.388 .22
Compagnie Financiere de Paribas, Class A (France) 150,000 9.136 .21
National Bank of Canada (Canada) 1000000 8.540 .20
Banca Popolare di Bergamo-Credito Varesino S.C.r.l.
(Italy) 400000 6.016
Banca Popolare di Bergamo-Credito Varesino S.C.r.l.,
8.80% convertible debentures 2000 /1/ LIT2,277,775 1.556
Banca Popolare di Bergamo-Credito Varesino S.C.r.l.,
7.50% convertible debentures 1999 LIT1,000,000,0 .804
Banca Popolare di Bergamo-Credito Varesino S.C.r.l.,
warrants, expire 2000 /2/ 455555 .154 .20
NationsBank Corp. (USA) 100,000 8.112 .19
Sumitomo Bank, Ltd. (Japan) 400000 7.885 .18
Grupo Financiero Banamex Accival, SA de CV, Class B
(Mexico) /2/ 2993000 6.780
Grupo Financiero Banamex Accival, SA de CV, Class L/2/ 509000 1.071 .18
Svenska Handelsbanken Group, Class A (Sweden) 325000 6.706
Svenska Handelsbanken Group, rights, expire 6/24/96 /2/ 346900 .483
Svenska Handelsbanken Group, Class B 21900 .429 .18
Banco Popular Espanol, SA (Spain) 40000 6.998 .16
J.P. Morgan & Co. Inc. (USA) 80000 6.950 .16
National Westminster Bank PLC (United Kingdom) 438,906 4.243 .10
CS Holding Group (Switzerland) 32,500 2.811 .06
Nordbanken (American Depositary Receipts) (Sweden) /2/ 66,500 2.388 .06
TELECOMMUNICATIONS- 8.74%
Telecom Corp. of New Zealand Ltd. (New Zealand) 8380000 34.016
Telecom Corp. of New Zealand Ltd. (American Depositary
Receipts) 331000 21.722
Telecom Corp. of New Zealand Ltd. /3/ 4048000 16.432 1.67
Koninklije PTT Nederland NV (Netherlands) 1512800 54.866 1.27
Hong Kong Telecommunications Ltd. (Hong Kong) 23689285 43.943 1.01
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 482630 31.069 .72
Portugal Telecom, SA (Portugal) 1121000 27.186 .63
Tele Danmark AS, Class B (American Depositary Receipts)
(Denmark) 924100 22.987
Tele Danmark AS, Class B 82500 4.068 .62
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 582300 19.216 .44
STET-Societa Finanziaria Telefonica p.a., nonconvertible
savings shares (Italy) 4775000 13.713
STET-Societa Finanziaria Telefonica p.a. 890000 3.185 .39
U S WEST Communications Group (USA) 500000 16.313 .38
International CableTel Inc., 7.25% convertible
debentures 2005 (USA) /3/ /4/ $11,000,000 13.750 .32
Telecom Italia SpA (Italy) 6900000 11.616
Telecom Italia SpA, savings shares 357800 .721 .28
Telecom Italia Mobile SpA, ordinary shares (Italy) 4264200 9.175 .21
Telefonica de Espana, SA, Class B (Spain) 450000 8.101 .19
MFS Communications Co., Inc., 8.00% DECS convertible
preferred shares (USA) /2/ 130000 7.767 .18
Pacific Telesis Group (USA) 152455 5.088 .12
Bell Atlantic Corp. (USA) 75000 4.678 .11
AirTouch Communications (USA) /2/ 117820 3.756 .09
ALLTEL Corp. (USA) 100000 3.150 .07
Telefonica de Argentina SA, Class B (Argentina) 600000 1.753 .04
MULTI-INDUSTRY- 7.01%
Hutchison Whampoa Ltd. (Hong Kong) 5,990,000 38.483 .89
Incentive AB, Class B (Sweden) 580,000 29.810 .69
Brierley Investments Ltd. (New Zealand) 26,098,186 23.207
Brierley Investments Ltd., $0.85 convertible preferred
shares 4025000 3.388 .61
B A T Industries PLC (United Kingdom) 3011000 24.230 .56
Imasco Ltd. (Canada) 1,000,000 20.328 .47
Orkla AS, Class B (Norway) 351,000 16.109
Orkla AS, Class A 71,000 3.531 .45
Hanson PLC (United Kingdom) 5156780 14.952 .35
Ayala Corp. 3.00% convertible debentures 2000
(Philippines) $10,000,000 14.650 .34
U.S. Industries, Inc. (USA) /2/ 623157 13.554 .31
Industriforvaltnings AB Kinnevik, Class B (Sweden) 468,750 13.233 .31
AB Industrivarden, Class A (Sweden) 300,000 10.458 .24
Jardine Strategic Holdings Ltd. (Hong Kong - Incorporated
in Bermuda) 3375000 10.125
Jardine Strategic Holdings Ltd., 7.50% convertible
debentures 2049 $181,000 .187
Jardine Strategic Holdings Ltd., warrants, expire 1998 /2/ 375,000 .120 .24
Groupe Bruxelles Lambert SA (Belgium) 63,000 8.454 .20
Canadian Pacific Ltd. (Canada) 400000 8.200 .19
Lend Lease Corp. Ltd. (Australia) 523632 8.190 .19
Tenneco Inc. (USA) 150,000 8.062 .19
Harsco Corp. (USA) 100,000 6.487 .15
LTV Corp. (USA) 500,000 6.437 .15
Textron Inc. (USA) 75000 6.356 .15
Compagnie Nationale a Portefeuille (Belgium) 100000 5.911
Compagnie Nationale a Portefeuille, warrants,
expire 1999 /2/ 150000 .335 .14
Investor AB, Class B (Sweden) 160,000 5.864 .14
Preussag AG (Germany) 8,000 2.046
Preussag AG, warrants, expire 2001 /2/ 468 .018 .05
HEALTH & PERSONAL CARE- 5.11%
AB Astra, Class A (Sweden) 800000 36.230
AB Astra, Class B 350000 15.616 1.20
Eli Lilly and Co. (USA) 500000 32.125 .74
Glaxo Wellcome PLC (United Kingdom) 2000000 26.064 .60
Merck & Co., Inc. (USA) 385000 24.881 .57
Bausch & Lomb Inc. (USA) 550,000 23.650 .55
American Home Products Corp. (USA) 442,000 23.647 .55
Bristol-Myers Squibb Co. (USA) 175000 14.941 .35
Warner-Lambert Co. (USA) 150000 8.400 .19
Sandoz Ltd., 2.00% convertible debentures 2002
(Switzerland) $7,500,000 7.678 .18
North American Vaccine, 6.50% convertible debentures
2003 (USA) /3/ $4,000,000 4.440 .10
Abbott Laboratories (USA) 50000 2.156 .05
Baxter International Inc. (USA) 30000 1.327 .03
BUSINESS & PUBLIC SERVICES- 4.50%
PacifiCare Health Systems, Inc., Class A (USA) /2/ 200000 15.800
PacifiCare Health Systems, Inc., Class B /2/ 125000 10.344 .60
United Utilities PLC (United Kingdom) (formerly North
West Water Group PLC) 2886428 26.069 .60
Brambles Industries Ltd. (Australia) 1245000 17.486 .40
General Motors Corp., Class E (USA) 300000 16.912 .39
Autopistas de Mare Nostrum, SA Concesionaria del Estado
(Spain) 1,200,000 14.448 .33
Havas SA (France) 150000 12.860 .30
Southern Water PLC (United Kingdom) 821444 12.475 .29
Quintiles Transnational Corp. 4.25% convertible
debentures 2000 (USA) /3/ $10,000,000 10.975 .25
American Water Works Co., Inc. (USA) 300,000 10.687 .25
Alco Standard Corp. (USA) 160000 10.000 .23
Autopistas, Concesionaria Espanola, SA (Spain) 779520 8.414 .19
Hyder PLC (formerly Welsh Water PLC) (United Kingdom) 625000 7.278 .17
Hutchison Delta Finance Ltd., 7.00% convertible
debentures 2002 (Hong Kong - Incorporated in Cayman
Islands) $6,000,000 6.462 .15
WMX Technologies, Inc. (USA) 125000 4.406 .10
Omnicom Group Inc. (USA) 100000 4.362 .10
Thames Water PLC (United Kingdom) 441994 4.054 .09
Compagnie Generale des Eaux (France) 25000 2.682 .06
ENERGY SOURCES- 4.34%
Phillips Petroleum Co. (USA) 775,000 32.162 .74
"Shell" Transport and Trading Co., PLC (New York
Registered Shares) (United Kingdom) 165,000 14.211
Royal Dutch Petroleum Co. (New York Registered Shares)
(Netherlands) 60,000 9.000
Royal Dutch Petroleum Co. 35000 5.322 .66
Unocal Corp. (USA) 840000 27.300 .63
ENI SpA (American Depositary Shares) (Italy) 580000 27.260 .63
TOTAL, Class B (France) 317354 23.003 .53
Repsol SA (American Depositary Receipts) (Spain) 225,000 7.650
Repsol SA 100,000 3.429 .26
YPF SA, Class D (American Depositary Receipts)
(Argentina) 450,000 9.900 .23
Esso SA Francaise (France) 78567 9.677 .22
Engen Ltd. (South Africa) 1500000 8.458 .20
Occidental Petroleum Corp. (USA) 250000 6.469 .15
Burmah Castrol PLC (United Kingdom) 206343 3.339 .08
Fletcher Challenge Energy Division (New Zealand) 127025 .265 .01
INSURANCE- 4.17%
Internationale Nederlanden Groep NV (Netherlands) 1309705 108.066
Internationale Nederlanden Groep NV, warrants,
expire 2001 /2/ 2000000 12.242 2.78
National Mutual Asia Ltd. (Hong Kong) 23708000 21.452 .50
GIO Australia Holdings Ltd. (Australia) 5851530 14.382 .33
Union des Assurances Federales (France) 600000 11.894 .27
Allstate Corp. (USA) 150000 6.337 .15
Yasuda Fire and Marine Insurance Co., Ltd. (Japan) 470000 3.497 .08
Prudential Corp. PLC (United Kingdom) 406576 2.708 .06
FOOD & HOUSEHOLD PRODUCTS- 3.84%
Reckitt & Colman PLC (United Kingdom) 3548750 38.062 .88
Cadbury Schweppes PLC (United Kingdom) 4486120 33.596 .78
Dalgety PLC (United Kingdom) 3350000 19.400 .45
Cultor Ltd. (Finland) 390000 18.503 .43
Unilever PLC (United Kingdom) 650000 12.094
Unilever NV (Netherlands) 30000 4.102 .37
Groupe Danone (France) 75000 10.998 .25
Nestle SA (Switzerland) 8452 9.545 .22
Colgate-Palmolive Co. (USA) 100000 7.875 .18
Uni-Charm Corp. (Japan) 189000 4.985 .12
McCormick & Co. (USA) 205000 4.664 .11
Hazlewood Foods PLC (United Kingdom) 1419800 2.201 .05
UTILITIES: ELECTRIC & GAS- 3.74%
National Power PLC (United Kingom) 6160000 49.713 1.15
Columbia Gas System, Inc. (USA) 500000 24.437 .56
Southern Electric PLC (United Kingdom) 1,925,100 21.297 .49
General Public Utilities Corp. (USA) 392000 13.132 .30
Hongkong Electric Holdings Ltd. (Hong Kong) 4073500 13.059 .30
Scottish Power PLC (United Kingdom) 1875000 9.230 .21
British Gas PLC (American Depositary Receipts)
(United Kingdom) 150000 4.406
British Gas PLC 900000 2.658 .16
Hong Kong and China Gas Co. Ltd. (Hong Kong) 4290144 6.821
Hong Kong and China Gas Co. Ltd., warrants, expire 1997 /2/ 357512 .101 .16
Enersis SA (American Depositary Receipts) (Chile) 216500 6.360 .15
Australian Gas Light Co. (Australia) 1133367 4.676 .11
China Light & Power Co., Ltd. (Hong Kong) 932000 4.434 .10
National Grid Group PLC (United Kingdom) 706200 1.993 .05
BEVERAGES & TOBACCO- 2.96%
Philip Morris Companies Inc. (USA) 370000 36.769 .85
RJR Nabisco Holdings Corp. (USA) 900000 29.812 .69
Seagram Co. Ltd. (Canada) 670000 23.199 .54
Lion Nathan Ltd. (New Zealand) 5000000 12.049 .28
Coca-Cola Amatil Ltd. (Australia) 987698 10.759 .25
American Brands, Inc. (USA) 200000 8.750 .20
UST Inc. (USA) 200000 6.600 .15
MERCHANDISING- 2.73%
Tesco PLC (United Kingdom) 7,245,301 33.870 .78
Wal-Mart Stores, Inc. (USA) 725000 18.759 .43
AJL PEPS Trust, $1.44 convertible preferred shares
(Japan) 465,000 9.707
Amway Japan Ltd. (Japan) 179,000 8.615 .42
J.C. Penney Co., Inc. (USA) 160000 8.300 .19
Home Depot, Inc. (USA) 145000 7.413 .17
Duty Free International, Inc. (USA) 470,000 7.050 .16
Staples, Inc., 4.50% convertible debentures 2000 (USA) /3/ $6,000,000 6.585 .15
Woolworths Ltd. (Australia) 2568696 6.416 .15
Giant Food Inc., Class A (USA) 150,000 5.175 .12
Toys "R" Us, Inc. (USA) /2/ 150,000 4.350 .10
WHSmith Group PLC (United Kingdom) 350000 2.458 .06
FOREST PRODUCTS & PAPER- 2.70%
Sonoco Products Co. (USA) 735000 20.121 .46
James River Corp. of Virginia, $1.55 DECS convertible
preferred shares (USA) 450000 10.744
James River Corp. of Virginia 350000 8.706 .45
Champion International Corp. (USA) 430000 18.974 .44
Jefferson Smurfit Corp. (USA) /2/ 1332300 16.654 .38
Union Camp Corp. (USA) 300000 15.788 .36
UPM-Kymmene (Finland) 324100 6.247
Kymmene Corp., 8.25% convertible debentures 2043 FIM18,000,000 4.327 .24
Bowater Inc. (USA) 200000 7.875 .18
MAYR-MELNHOF Karton AG (Austria) /2/ 145000 6.495 .15
Carter Holt Harvey Ltd. (New Zealand) 616770 1.344 .03
Fletcher Challenge Paper Division (New Zealand) 254050 .460 .01
CHEMICALS- 2.62%
Praxair, Inc. (USA) 992500 40.320 .93
Airgas, Inc. (USA) /2/ 1454000 30.352 .70
Sherwin-Williams Co. (USA) 436000 19.565 .45
L'Air Liquide (France) 45827 7.991 .18
Akzo Nobel NV (Netherlands) 48000 5.823 .13
AGA AB, Class B (Sweden) 300000 5.140 .12
DSM NV (Netherlands) 30000 3.088 .07
BASF AG (Germany) 6250 1.740 .04
MACHINERY & ENGINEERING- 2.38%
Mannesmann AG (Germany) 120075 41.725 .96
Caterpillar Inc. (USA) 270000 17.719 .41
Bombardier Inc., Class B (Canada) 1000000 13.978 .32
Kawasaki Heavy Industries, Ltd. (Japan) 2100000 10.981 .25
Atlas Copco AB, Class A (Sweden) 585000 10.894 .25
Triplex Lloyd PLC (United Kingdom) 2401070 6.143 .14
Zardoya Otis, SA (Spain) 21574 2.150 .05
Scania AB, Class B, warrants, expire 1999 (Sweden) /2/ 160000 .185 .00
METALS: NONFERROUS- 2.21%
Noranda Inc. (Canada) 1,225,000 26.467 .61
Pechiney, Class A (France) 524200 22.359 .52
Inco Ltd. (Canada) 475000 15.497 .36
Teck Corp., 3.75% convertible debentures 2006 (Canada) $13,950,000 15.345 .35
Aluminum Co. of America (USA) 170000 10.476 .24
Indian Aluminium Co. Ltd. (Global Depositary Receipts)
(India) 411800 2.831 .07
Phelps Dodge Corp. (USA) 40200 2.754 .06
AUTOMOBILES- 2.09%
Ford Motor Co., Class A (USA) 950,000 34.675 .80
Regie Nationale des Usines Renault, SA (France) 878,500 24.077 .56
Bayerische Motoren Werke AG (Germany) 22000 12.132
Bayerische Motoren Werke AG, preferred shares 10,254 4.032 .37
Toyota Motor Corp. (Japan) 435000 9.944 .23
Porsche AG, preferred shares (Germany) /2/ 10,000 5.646 .13
GOLD MINES- 1.61%
Normandy Mining Ltd. (Australia) 12189498 21.594
Normandy Mining Ltd., options, expire 2001 /2/ 4875799 2.568 .56
Barrick Gold Corp. (Canada) 600000 18.900 .44
Driefontein Consolidated Ltd. (South Africa) 900000 13.257 .31
Kloof Gold Mining Co. Ltd. (South Africa) 1000000 12.773 .30
INDUSTRIAL COMPONENTS- 1.55%
Goodyear Tire & Rubber Co. (USA) 400000 20.200 .47
Morgan Crucible Co. PLC (United Kingdom) 2119487 14.032 .32
Federal-Mogul Corp. (USA) 744,900 13.688 .32
Compagnie Generale des Etablissements Michelin, Class B
(France) 250000 12.632
Compagnie Generale des Etablissements Michelin, $2.50
convertible preferred shares 8333 .471 .30
BICC PLC (United Kingdom) 750000 3.785 .09
AB SKF, Class B (Sweden) 100,000 2.249 .05
RECREATION & OTHER CONSUMER PRODUCTS- 1.36%
THORN EMI PLC (United Kingdom) 1,766,413 49.134 1.13
Fuji Photo Film Co., Ltd. (Japan) 200000 6.219 .14
Hasbro, Inc. (USA) 103200 3.896 .09
BROADCASTING & PUBLISHING- 1.15%
CANAL+ (France) 60003 14.746 .34
Viacom Inc., Class B (USA) /2/ 275000 11.653 .27
CanWest Global Communications Corp. (Canada) 290080 8.681 .20
Tele-Communications, Inc., Series A, Liberty Media Group
(USA) /2/ 240800 7.224 .17
News International PLC (United Kingdom) 1000000 4.807 .11
TeleWest Communications PLC (American Depositary
Receipts) (United Kingdom) /2/ 71000 1.984 .05
Elsevier NV (Netherlands) 37500 .583 .01
APPLIANCES & HOUSEHOLD DURABLES- 1.08%
AB Electrolux, Class B (Sweden) 500000 25.288 .58
Whirlpool Corp. (USA) 240000 13.650 .32
Sony Corp. (Japan) 75000 4.769 .11
SANYO Electric Co., Ltd. (Japan) 534000 3.178 .07
MISCELLANEOUS MATERIALS & COMMODITIES- 1.03%
English China Clays PLC (United Kingdom) 6130000 25.805 .60
Compagnie de Saint-Gobain (France) 106622 13.649 .32
TRINOVA Corp. (USA) 150000 4.950 .11
TRANSPORTATION: RAIL & ROAD- 0.85%
TNT Ltd., convertible preferred shares (Australia) 9,043,900 12.702
TNT Ltd. /2/ 524,862 .632 .31
Railtrack Group PLC (United Kingdom) /2/ 3,860,600 13.019 .30
CSX Corp. (USA) 120000 5.940 .14
Canadian National Railway System (Canada) 236,200 4.370 .10
FINANCIAL SERVICES- 0.84%
Household International, Inc. (USA) 175000 12.119 .28
Associates First Capital Corp., Class A (USA) /2/ 310000 11.470 .27
Federal National Mortgage Assn. (USA) 200000 6.175 .14
United Companies Financial Corp., 6.75% PRIDES
convertible preferred shares (USA) 75000 4.144 .10
Beneficial Corp. (USA) 40000 2.330 .05
ELECTRICAL & ELECTRONIC- 0.83%
Alcatel Alsthom (France) 125000 11.420 .26
Siemens AG (Germany) 150000 8.428 .19
Northern Telecom Ltd. (Canada) 100000 5.425 .13
BBC Brown Boveri Ltd., Class A (Switzerland) 3500 4.194 .10
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 147400 3.239 .08
Lucent Technologies Inc. (USA) /2/ 85000 3.230 .07
REAL ESTATE- 0.81%
Sun Hung Kai Properties Ltd. (Hong Kong) 1400000 14.297 .33
Westfield Trust (Australia) 5635000 9.668 .22
Land Securities PLC (United Kingdom) 600000 5.973 .14
Tai Cheung Holdings Ltd. (Hong Kong - Incorporated in
Bermuda) 5999570 5.312 .12
ENERGY EQUIPMENT- 0.59%
Schlumberger Ltd. (Netherlands Antilles) 305000 25.429 .59
TRANSPORTATION: SHIPPING- 0.38%
Teekay Shipping Corp. (Bahamas) 416700 11.459 .26
Shun Tak Holdings Ltd. (Hong Kong) 7908471 5.265 .12
WHOLESALE & INTERNATIONAL TRADE- 0.37%
Mitsubishi Corp. (Japan) 1180000 16.163 .37
TEXTILES & APPAREL- 0.32%
Courtaulds Textiles PLC (United Kingdom) 2391500 13.961 .32
ELECTRONIC COMPONENTS- 0.30%
Quantum Corp., 5.00% convertible debentures 2003 (USA) /3/ $10,000,000 12.200 .28
Advanced Micro Devices, Inc. (USA) /2/ 50,600 .892 .02
TRANSPORTATION: AIRLINES- 0.28%
Air New Zealand Ltd., Class B (New Zealand) 2,530,000 7.642 .18
British Airways PLC (United Kingdom) 500000 4.345 .10
METALS: STEEL- 0.28%
Usinor Sacilor (France) 450000 7.245 .17
Inland Steel Industries, Inc. (USA) 150000 3.244 .08
Nippon Denro Ispat Ltd., 3.00% convertible debentures
2001 (India) $2,800,000 1.442 .03
LEISURE & TOURISM- 0.23%
Village Roadshow Ltd., Class A preferred shares
(Australia)/2/ /3/ /4/ 2500000 8.156 .19
Euro Disney SCA, 6.75% convertible debentures 2001
(France) FRF10,010,000 1.908 .04
ELECTRONIC INSTRUMENTS- 0.10%
ThermoQuest Corp., 5.00% convertible debentures 2000
(USA) /3/ $3,750,000 4.162 .10
BUILDING MATERIALS & COMPONENTS- 0.01%
Fletcher Challenge Building Division (New Zealand) 127,025 .258 .01
MISCELLANEOUS- 1.39%
Other equity-type securities in initial
period of acquisition 59.965 1.39
-------- --------
TOTAL EQUITY-TYPE SECURITIES (cost:
$3,077.598 million) 3,845.348 88.81
-------- --------
- ------------------------------------------ -------------
Principal
Amount
Bonds and Notes (Millions)
- ------------------------------------------ -------------
INDUSTRIALS- 0.67%
Container Corp. of America 11.25% May 2004 $6.000 6.180
Container Corp. of America 9.75% April 2003 1.000 .995 .17
Venezolana de Cementos, SACA Eurobond 9.25% November 1996 6.000 6.000 .14
Telecom Argentina STET-France Telecom SA 12.00%
November 2002 5.500 5.912 .14
Fort Howard Corp. 8.25% February 2002 4.500 4.354 .10
CEMEX, SA de CV 8.875% June 1998 3.000 2.947 .07
AB SKF 7.625% July 2003 2.000 1.989 .05
ARGENTINEAN GOVERNMENT- 0.53%
Argentina Eurobond 6.3125% March 2005 /1/ $29.948 23.060 .53
SOUTH AFRICAN GOVERNMENT- 0.52%
South Africa 13.00% August 2010 ZAR120.000 22.371 .52
CANADIAN GOVERNMENT- 0.32%
Canada 6.250% February 1998 C$13.200 9.667 .22
Canada 7.50% July 1997 6.000 4.478 .10
NEW ZEALAND GOVERNMENT- 0.15%
New Zealand 8.00% July 1998 NZ$10.000 6.647 .15
-------- --------
TOTAL BONDS AND NOTES (cost: $93.132 million) 94.600 2.19
-------- --------
- ------------------------------------------ ------------- ------------- -------------
Short-Term Securities
- ------------------------------------------ ------------- ------------- -------------
CORPORATE SHORT-TERM NOTES- 5.63%
National Australia Funding (Delaware) Inc. 5.28%-5.30%
due 7/2-8/5/96 39.500 39.166 .91
Toyota Motor Credit Corp. 5.28%-5.30% due 6/24-6/26/96 38.750 38.605 .89
Societe Generale NA Inc. 5.29% due 6/18/96 33.100 33.012 .76
SmithKline Beecham Corp. 5.27% due 6/27-7/16/96 29.600 29.472 .68
Sandoz Corp. 5.28%-5.30% due 6/24-7/12/96 28.500 28.388 .66
Ford Credit Europe PLC 5.29%-5.30% due 7/1-8/1/96 26.300 26.135 .60
Siemens Corp. 5.26%-5.29% due 6/24-7/9/96 25.500 25.386 .59
Daimler-Benz North America Corp. 5.27%-5.28%
due 6/17-8/28/96 14.900 14.809 .34
Pacific Bell 5.37% due 6/3/96 8.600 8.596 .20
FEDERAL AGENCY DISCOUNT NOTES- 1.75%
Federal Home Loan Mortgage Corp. 5.04%-5.26% due
6/7-8/12/96 53.061 52.814 1.22
Federal National Mortgage Assn. 5.14% due 6/4/96 23.100 23.087 .53
CERTIFICATES OF DEPOSIT- 1.27%
Deutsche Bank AG 5.36% due 6/11/96 30.000 30.000 .69
Commerzbank AG 5.32%-5.38% due 7/29-8/5/96 24.900 24.901 .58
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $374.373
million) 374.371 8.65
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $3,545.103
million) 4,314.319 99.65
Excess of cash and receivables over payables 15.352 .35
-------- ------
NET ASSETS $4,329.671 100.00%
======================================================== ============ ==========
/1/ Coupon rates may change periodically.
/2/ Non-income-producing securities
/3/ Purchased in a private placement
transaction; resale to the public may
require registration or may extend only
to qualified institutional buyers.
/4/ Valued under procedures established by
the Board of Directors
See Notes to Financial Statements
</TABLE>
<TABLE>
Capital World Growth and Income Fund, Inc.
Financial Statements (unaudited)
- ---------------------------------------- ------------------------------
Statement of Assets and Liabilities (dollars in
at May 31, 1996 millions)
- ----------------------------------------- ------------------------------
<C> <S> <S>
Assets:
Investment securities at market
(cost: $3,545.103) $4,314.319
Cash .145
Receivables for--
Sales of investments $25.214
Sales of fund's shares 8.165
Dividends and accrued interest 21.432 54.811
------------------------------
4,369.275
Liabilities:
Payables for--
Purchases of investments 29.924
Repurchases of fund's shares 5.611
Management services 1.635
Accrued expenses 2.434 39.604
------------------------------
Net Assets at May 31, 1996--
Equivalent to $21.71 per share on
199,398,495 shares of $0.01 par value
capital stock outstanding (authorized
capital stock - 400,000,000 shares) $4,329.671
===============
(unaudited)
---------------
Statement of Operations (dollars in
for the six months ended May 31, 1996 millions)
- --------------------------------------------- ------------------------------
Investment Income:
Income:
Dividends $ 63.406
Interest 19.977 $ 83.383
------------
Expenses:
Management services fee 9.091
Distribution expenses 4.436
Transfer agent fee 1.919
Reports to shareholders .291
Registration statement and prospectus .264
Postage, stationery and supplies .378
Directors' fees .045
Auditing and legal fees .051
Custodian fee .789
Taxes other than federal income tax .062
Other expenses .079 17.405
-------------- --------------
Net investment income 65.978
--------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 71.756
Net increase in unrealized appreciation on investments 266.301
Net realized gain and increase in unrealized
appreciation on investments 338.057
---------------
Net Increase in Net Assets Resulting
from Operations $404.035
===============
- ---------------------------------------------- ------------------------------
Six months
Statement of Changes in Net Assets ended Year ended
(dollars in millions) 5/31/96* 11/30/95
- ---------------------------------------------- ------------------------------
Operations:
Net investment income $ 65.978 $ 102.914
Net realized gain on investments 71.756 63.160
Net increase in unrealized appreciation
on investments 266.301 396.914
------------------------------
Net increase in net assets
resulting from operations 404.035 562.988
------------------------------
Dividends and Distributions Paid to Shareholders:
Dividends from net investment income (53.200) (104.776)
Distributions from net realized gain on investment (62.507) (45.496)
------------------------------
Total dividends and distributions (115.707) (150.272)
Capital Share Transactions:
Proceeds from shares sold: 24,295,649
and 34,635,645 shares, respectively 507.015 647.812
Proceeds from shares issued in reinvestment
of net investment income dividends and distributions
of net realized gain on investments:
5,392,270 and 7,787,809 shares, respectively 109.311 141.079
Cost of shares repurchased: 8,920,411
and 20,156,313 shares, respectively (186.214) (374.730)
------------------------------
Net increase in net assets
resulting from capital share
transactions 430.112 414.161
------------------------------
Total Increase in Net Assets 718.440 826.877
Net Assets:
Beginning of period 3,611.231 2,784.354
------------------------------
End of period (including undistributed
net investment income: $29.766
and $16.988, respectively) $4,329.671 $3,611.231
==============================
* Unaudited
See Notes to Financial Statements
</TABLE>
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 fund seeks long-term capital growth while providing
current income. The following paragraphs summarize the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price.
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 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.
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 $789,000 includes $18,000 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, 1996, net unrealized appreciation on investments for
federal income tax purposes aggregated $769,216,000, of which $855,722,000
related to appreciated securities and $86,506,000 related to depreciated
securities. During the six months ended May 31, 1996, the fund realized, on a
tax basis, a net capital gain of $69,605,000 on securities transactions. Net
gains related to non-U.S. currency transactions of $2,152,000 were treated as
adjustments to ordinary income for federal income tax purposes. The cost of
portfolio securities for book and federal income tax purposes was
$3,545,103,000 at May 31, 1996.
3. The fee of $9,091,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (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 of $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, 1996,
distribution expenses under the Plan were $4,436,000. As of May 31, 1996,
accrued and unpaid distribution expenses were $2,065,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $1,919,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $2,414,000 (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 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, 1996,
aggregate amounts deferred and earnings thereon were $122,000.
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, 1996, accumulated undistributed net realized gain on
investments was $67,483,000 and additional paid-in capital was $3,457,175,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $875,518,000 and $509,346,000, respectively, during
the six months ended May 31, 1996.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended May 31, 1996, such non-U.S. taxes were $5,989,000. Net
realized currency gains on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds and notes were $3,387,000 for the six months ended
May 31, 1996.
<TABLE>
Per-Share Data and Ratios Six months Year ended Period
ended November 30, 3/26/93 /2/
5/31/96 /1/ 1995 1994to 11/30/93
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $20.22 $17.81 $17.00 $15.08
---------- ---------- ---------- ----------
Income From Investment Operations:
Net investment income .34 .61 .52 .29
Net realized and unrealized gain on inve 1.78 2.72 .75 1.86
---------- ---------- ---------- ----------
Total income from investment operations 2.12 3.33 1.27 2.15
---------- ---------- ---------- ----------
Less Distributions:
Dividends from net investment income (.29) (.63) (.46) (.23)
Distributions from net realized gains (.34) (.29) -- --
---------- ---------- ---------- ----------
Total distributions (.63) (.92) (.46) (.23)
---------- ---------- ---------- ----------
Net Asset Value, End of Period $21.71 $20.22 $17.81 $17.00
========== ========== ========== ==========
Total Return /3/ 10.73% /4/ 19.41% 7.51% 14.39% /4/
Ratios/Supplemental Data:
Net assets, end of period (in millions) $4,330 $3,611 $2,784 $1,521
Ratio of expenses to average net assets .44% /4/ .88% .87% .62% /4/
Ratio of net income to average net assets 1.66% /4/ 3.24% 3.11% 2.01% /4/
Average commissions paid per share /1/ /5 .24 cents 1.94 cents 1.24 cents 1.31 cents
Portfolio turnover rate 14.26% /4/ 25.50% 18.66% 2.71% /4/
/1/ Unaudited
/2/Commencement of operations
/3/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.
/5/ Brokerage commissions paid on portfolio transactions increase the cost of securities
purchased or reduce the proceeds of securities sold, and are not reflected in the fund's
statement of operations. Shares traded on a principal basis, such as most over-the-counter
and fixed-income transactions, are excluded. Generally, non-U.S. commissions are lower than
U.S. commissions when expressed as cents per share but higher when expressed as a percentage
of transactions because of the lower per-share prices of many non-U.S. securities.
</TABLE>
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER,
CAPITAL RESEARCH AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5804
TRANSFER AGENT FOR
SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071-2899
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER 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, 1996, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA W/FS/3024
Lit. No. WGI-013-0796
Printed on recycled paper
[The American Funds Group(R)]
