<PAGE>
[logo - American Funds /(R)/] The right choice for the long term/(R)/
EuroPacific
Growth Fund/(R)/
RETIREMENT PLAN
PROSPECTUS
May 1, 2009
TABLE OF CONTENTS
1 Risk/Return summary
4 Fees and expenses of the fund
6 Investment objective, strategies and risks
9 Management and organization
13 Purchase, exchange and sale of shares
17 Sales charges
19 Sales charge reductions
21 Rollovers from retirement plans to IRAs
21 Plans of distribution
22 Other compensation to dealers
23 Distributions and taxes
24 Financial highlights
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF
THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
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[This page is intentionally left blank for this filing.]
<PAGE>
Risk/Return summary
The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe and the Pacific Basin.
The fund is designed for investors seeking capital appreciation and
diversification through investments in stocks, consistent with the fund's
investment objective. Investors in the fund should have a long-term perspective
and, for example, be able to tolerate potentially sharp, short-term declines in
value.
Your investment in the fund is subject to various risks. Consequently, the
fund's portfolio holdings may lose value. Declines in the value of certain
stocks held by the fund could be in response to economic, political and/or
social events taking place around the world. For example, increases in the
prices of basic commodities, such as oil or grains, can negatively impact the
value of the stocks of certain companies. Further, changes in relationships
among global currencies may trigger declines in the value of the fund's
holdings. Investing in companies based in developing countries may entail
greater risks. Finally, the fund's investment results will depend on the ability
of the fund's investment adviser to navigate these risks.
Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.
YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS MAY BE
GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
1
EuroPacific Growth Fund / Prospectus
<PAGE>
HISTORICAL INVESTMENT RESULTS
The bar chart below shows how the fund's investment results have varied from
year to year, and the Investment Results table on page 3 shows how the fund's
average annual total returns for various periods compare with different broad
measures of market performance. This information provides some indication of the
risks of investing in the fund. All fund results reflect the reinvestment of
dividends and capital gain distributions, if any. Unless otherwise noted, fund
results reflect any fee waivers and/or expense reimbursements in effect during
the period presented. Past results are not predictive of future results.
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if a sales charge were included,
results would be lower.)
[begin bar chart]
1999 56.97%
2000 -17.84
2001 -12.18
2002 -13.61
2003 32.91
2004 19.69
2005 21.12
2006 21.87
2007 18.96
2008 -40.53
[end bar chart]
Highest/Lowest quarterly results during this time period were:
HIGHEST 29.09% (quarter ended December 31, 1999)
LOWEST -19.28% (quarter ended December 31, 2008)
2
EuroPacific Growth Fund / Prospectus
<PAGE>
Unlike the bar chart on the previous page, the Investment Results table below
reflects, as required by Securities and Exchange Commission rules, the fund's
investment results with the following maximum initial sales charge imposed:
. Class A share results reflect the maximum initial sales charge of 5.75%. This
charge is reduced for purchases of $25,000 or more and eliminated for
purchases of $1 million or more.
. Class R shares are sold without any initial sales charge.
Results would be higher if calculated without a sales charge.
Unlike the Investment Results table below, the Additional Investment Results
table on page 7 reflects the fund's results calculated without a sales charge.
INVESTMENT RESULTS (WITH A MAXIMUM SALES CHARGE)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2008:
1 YEAR 5 10 LIFETIME/1/
YEARS YEARS
----------------------------------------------------------------------
CLASS A -- FIRST SOLD 4/16/84 -43.94% 3.33% 4.36% 11.05%
1 YEAR 5 LIFETIME/1/
YEARS
---------------------------------------------------------------
CLASS R-1 -- FIRST SOLD 6/17/02 -41.01% 3.69% 5.19%
CLASS R-2 -- FIRST SOLD 5/31/02 -41.04 3.69 4.49
CLASS R-3 -- FIRST SOLD 5/21/02 -40.71 4.21 4.79
CLASS R-4 -- FIRST SOLD 6/7/02 -40.56 4.51 5.63
CLASS R-5 -- FIRST SOLD 5/15/02 -40.38 4.81 5.46
1 YEAR 5 10 LIFETIME/2/
YEARS YEARS
-------------------------------------------------------------------------------
INDEXES
MSCI/(R)/ All Country World Index ex -45.24% 3.00% 2.27% N/A
USA/3/
Lipper International Funds Average/4/ -44.24 1.38 2.15 8.76%
MSCI EAFE Index/5/ -43.06 2.10 1.18 8.79
1 Lifetime results for each share class are measured from the date the share
class was first sold.
2 Lifetime results for the index(es) shown are measured from the date Class A
shares were first sold. The funds or securities that compose each index may
vary over time.
3 MSCI All Country World Index ex USA is a free float-adjusted market
capitalization-weighted index that is designed to measure equity market
performance in the global developed and emerging markets, excluding the United
States. The index consists of 46 developed and emerging market country indexes.
This index is unmanaged and its results include reinvested dividends and/or
distributions, but do not reflect the effect of sales charges, commissions,
expenses or taxes. This index was not in existence as of the date the fund
began investment operations; therefore, lifetime results are not available.
4 Lipper International Funds Average is composed of funds that invest assets in
securities with primary trading markets outside the United States. The results
of the underlying funds in the average include the reinvestment of dividends
and capital gain distributions, as well as brokerage commissions paid by the
funds for portfolio transactions, but do not reflect the effect of sales
charges or taxes.
5 MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted
market capitalization-weighted index that is designed to measure developed
equity market performance, excluding the United States and Canada. This index
is unmanaged and its results include reinvested dividends and/or distributions,
but do not reflect the effect of sales charges, commissions, expenses or taxes.
3
EuroPacific Growth Fund / Prospectus
<PAGE>
Fees and expenses of the fund
These tables describe the fees and expenses that you may pay if you buy and hold
shares of the fund.
SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)
CLASS A ALL R SHARE CLASSES
------------------------------------------------------------------------------
Maximum initial sales charge on purchases 5.75%/*/ none
(as a percentage of offering price)
------------------------------------------------------------------------------
Maximum sales charge on reinvested dividends none none
------------------------------------------------------------------------------
Maximum contingent deferred sales charge none none
------------------------------------------------------------------------------
Redemption or exchange fees none none
* The initial sales charge is reduced for purchases of $25,000 or more and
eliminated for purchases of $1 million or more.
ANNUAL FUND OPERATING EXPENSES (DEDUCTED FROM FUND ASSETS)
CLASS CLASS CLASS CLASS CLASS CLASS
CLASS A R-1 R-2 R-3 R-4 R-5/3/ R-6/3,4/
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Management fees/1/ 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42%
-------------------------------------------------------------------------------
Distribution and/or 0.25 1.00 0.75 0.50 0.25 none none
service (12b-1)
fees/2/
-------------------------------------------------------------------------------
Other expenses/1/ 0.12 0.19 0.44 0.19 0.18 0.13 0.08
-------------------------------------------------------------------------------
Total annual fund 0.79 1.61 1.61 1.11 0.85 0.55 0.50
operating expenses/1/
-------------------------------------------------------------------------------
1 The fund's investment adviser waived a portion of its management fees from
September 1, 2004, through December 31, 2008. In addition, the investment
adviser paid a portion of the fund's transfer agent fees for certain R share
classes. Management fees, other expenses and total annual fund operating
expenses in the table do not reflect any waiver or reimbursement. Information
regarding the effect of any waiver/reimbursement on total annual fund operating
expenses can be found in the Financial Highlights table in this prospectus and
in the fund's annual report.
2 Class A, R-1, R-2, R-3 and R-4 12b-1 fees may not exceed .25%, 1.00%, 1.00%,
.75% and .50%, respectively, of the class's average net assets annually.
3 Class R-5 and R-6 shares are generally available only to fee-based programs
and/or through retirement plan intermediaries.
4 Based on estimated amounts for the current fiscal year. Amounts for all other
share classes are based on amounts incurred in the fund's fiscal year ended
March 31, 2008.
4
EuroPacific Growth Fund / Prospectus
<PAGE>
OTHER EXPENSES
The "Other expenses" items in the table above include custodial, legal, transfer
agent and subtransfer agent/recordkeeping payments, as well as various other
expenses. Subtransfer agent/recordkeeping payments may be made to the fund's
investment adviser, affiliates of the adviser and unaffiliated third parties for
providing recordkeeping and other administrative services to retirement plans
invested in the fund in lieu of the transfer agent providing such services. The
amount paid for subtransfer agent/recordkeeping services will vary depending on
the share class selected and the entity receiving the payments. The table below
shows the maximum payments to entities providing services to retirement plans.
PAYMENTS TO UNAFFILIATED
PAYMENTS TO AFFILIATED ENTITIES ENTITIES
-------------------------------------------------------------------------------
Class A .05% of assets or .05% of assets or
$12 per participant position/1/ $12 per participant position/1/
-------------------------------------------------------------------------------
Class R-1 .10% of assets .10% of assets
-------------------------------------------------------------------------------
Class R-2 .15% of assets plus $27 per .25% of assets
participant position/2/ or .35%
of assets/3/
-------------------------------------------------------------------------------
Class R-3 .10% of assets plus $12 per .15% of assets
participant position/2/ or .19%
of assets/3/
Class R-4 .10% of assets .10% of assets
-------------------------------------------------------------------------------
Class R-5 .05% of assets .05% of assets
-------------------------------------------------------------------------------
Class R-6 none none
-------------------------------------------------------------------------------
1 Payment amount depends on the date upon which services commenced.
2 Payment with respect to Recordkeeper Direct/(R)/ program.
3 Payment with respect to PlanPremier/(R)/ program.
EXAMPLES
The examples below are intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The examples assume that
you invest $10,000 in the fund for the time periods indicated, that your
investment has a 5% return each year, that all dividends and capital gain
distributions are reinvested, and that the fund's operating expenses remain the
same as shown above. The examples do not reflect the impact of any fee waivers
or expense reimbursements.
Although your actual costs may be higher or lower, based on these assumptions,
your cumulative estimated expenses would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------
Class A* $651 $813 $989 $1,497
--------------------------------------------------------------------
Class R-1 164 508 876 1,911
--------------------------------------------------------------------
Class R-2 164 508 876 1,911
--------------------------------------------------------------------
Class R-3 113 353 612 1,352
--------------------------------------------------------------------
Class R-4 87 271 471 1,049
--------------------------------------------------------------------
Class R-5 56 176 307 689
--------------------------------------------------------------------
Class R-6 51 160 280 628
--------------------------------------------------------------------
* Reflects the maximum initial sales charge.
5
EuroPacific Growth Fund / Prospectus
<PAGE>
Investment objective, strategies and risks
The fund's investment objective is to provide you with long-term growth of
capital. Normally, the fund will invest at least 80% of its assets in
securities of issuers located in Europe and the Pacific Basin. This policy is
subject to change only upon 60 days' notice to shareholders. Various factors
will be considered when determining whether a country is part of Europe,
including whether a country is part of the MSCI European indexes. A country will
be considered part of the Pacific Basin if any of its borders touch the Pacific
Ocean.
The prices of securities held by the fund may decline in response to certain
events, including those directly involving the companies whose securities are
owned by the fund; conditions affecting the general economy; overall market
changes; local, regional or global political, social or economic instability;
and currency, interest rate and commodity price fluctuations. The
growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss.
Investments in securities issued by entities based outside the United States may
also be affected by currency controls; different accounting, auditing, financial
reporting, and legal standards and practices in some countries; expropriation;
changes in tax policy; greater market volatility; differing securities market
structures; higher transaction costs; and various administrative difficulties,
such as delays in clearing and settling portfolio transactions or in receiving
payment of dividends. These risks may be heightened in connection with
investments in developing countries. Investments in securities issued by
entities domiciled in the United States may also be subject to many of these
risks.
The fund may also hold cash, money market instruments and fixed-income
securities. The percentage of the fund invested in such holdings varies and
depends on various factors, including market conditions and purchases and
redemptions of fund shares. A larger percentage of such holdings could moderate
the fund's investment results in a period of rising market prices.
A larger percentage of cash, money market instruments and fixed-income
securities could reduce the magnitude of the fund's loss in a period of falling
market prices and provide liquidity to make additional investments or to meet
redemptions.
The fund relies on the professional judgment of its investment adviser to make
decisions about the fund's portfolio investments. The basic investment
philosophy of the investment adviser is to seek to invest in attractively valued
companies that, in its opinion, represent above-average long-term investment
opportunities. The investment adviser believes that an important way to
accomplish this is through fundamental analysis, which may include meeting with
company executives and employees, suppliers, customers and competitors.
Securities may be sold when the investment adviser believes that they no longer
represent relatively attractive investment opportunities.
6
EuroPacific Growth Fund / Prospectus
<PAGE>
ADDITIONAL INVESTMENT RESULTS
Unlike the Investment Results table on page 3, the table below reflects the
fund's results calculated without a sales charge.
ADDITIONAL INVESTMENT RESULTS (WITHOUT A SALES CHARGE)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2008:
5 10
1 YEAR YEARS YEARS LIFETIME/1/
----------------------------------------------------------------------
CLASS A -- FIRST SOLD 4/16/84 -40.53% 4.56% 4.98% 11.32%
5
1 YEAR YEARS LIFETIME/1/
---------------------------------------------------------------
CLASS R-1 -- FIRST SOLD 6/17/02 -41.01% 3.69% 5.19%
CLASS R-2 -- FIRST SOLD 5/31/02 -41.04 3.69 4.49
CLASS R-3 -- FIRST SOLD 5/21/02 -40.71 4.21 4.79
CLASS R-4 -- FIRST SOLD 6/7/02 -40.56 4.51 5.63
CLASS R-5 -- FIRST SOLD 5/15/02 -40.38 4.81 5.46
1 YEAR 5 10 LIFETIME/2/
YEARS YEARS
-----------------------------------------------------------------------------
INDEXES
MSCI All Country World Index ex USA/3/ -45.24% 3.00% 2.27% N/A
Lipper International Funds Average/4/ -44.24 1.38 2.15 8.76%
MSCI EAFE Index/5/ -43.06 2.10 1.18 8.79
1 Lifetime results for each share class are measured from the date the share
class was first sold.
2 Lifetime results for the index(es) shown are measured from the date Class A
shares were first sold. The funds or securities that compose each index may
vary over time.
3 MSCI All Country World Index ex USA is a free float-adjusted market
capitalization-weighted index that is designed to measure equity market
performance in the global developed and emerging markets, excluding the United
States. The index consists of 46 developed and emerging market country indexes.
This index is unmanaged and its results include reinvested dividends and/or
distributions, but do not reflect the effect of sales charges, commissions,
expenses or taxes. This index was not in existence as of the date the fund
began investment operations; therefore, lifetime results are not available.
4 Lipper International Funds Average is composed of funds that invest assets in
securities with primary trading markets outside the United States. The results
of the underlying funds in the average include the reinvestment of dividends
and capital gain distributions, as well as brokerage commissions paid by the
funds for portfolio transactions, but do not reflect the effect of sales
charges or taxes.
5 MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted
market capitalization-weighted index that is designed to measure developed
equity market performance, excluding the United States and Canada. This index
is unmanaged and its results include reinvested dividends and/or distributions,
but do not reflect the effect of sales charges, commissions, expenses or taxes.
7
EuroPacific Growth Fund / Prospectus
<PAGE>
[begin pie chart]
INDUSTRY SECTOR DIVERSIFICATION AS OF SEPTEMBER 30, 2008 (percent of net assets)
Financials 15.03%
Health care 11.86
Telecommunication 10.42
services
Consumer 8.19
discretionary
Energy 8.11
Bonds & notes 0.06
Preferred stocks 0.04
Other industries 35.10
Short-term securities 11.19
& other assets
less liabilities
[end pie chart]
PERCENT INVESTED BY COUNTRY AS OF SEPTEMBER 30, 2008 PERCENT OF NET ASSETS
-------------------------------------------------------------------------------
Europe
Euro zone* 33.1%
------------------------------------------------------------------------------------
Switzerland 7.7
------------------------------------------------------------------------------------
United Kingdom 7.2
------------------------------------------------------------------------------------
Russia 2.7
------------------------------------------------------------------------------------
Denmark 1.7
------------------------------------------------------------------------------------
Sweden 1.7
------------------------------------------------------------------------------------
Norway 0.8
------------------------------------------------------------------------------------
Turkey 0.3
------------------------------------------------------------------------------------
Hungary 0.2
------------------------------------------------------------------------------------
Other Europe 0.2
------------------------------------------------------------------------------------
Pacific Basin
------------------------------------------------------------------------------------
Japan 7.5
------------------------------------------------------------------------------------
Mexico 3.2
------------------------------------------------------------------------------------
South Korea 2.8
------------------------------------------------------------------------------------
Canada 2.7
------------------------------------------------------------------------------------
Taiwan 2.6
------------------------------------------------------------------------------------
Australia 2.0
------------------------------------------------------------------------------------
China 1.8
------------------------------------------------------------------------------------
Hong Kong 1.3
------------------------------------------------------------------------------------
Singapore 1.0
------------------------------------------------------------------------------------
Phillipines 0.3
------------------------------------------------------------------------------------
Other Pacific Basin 0.7
------------------------------------------------------------------------------------
Other
Brazil 2.9
------------------------------------------------------------------------------------
India 2.0
------------------------------------------------------------------------------------
South Africa 1.4
------------------------------------------------------------------------------------
Israel 0.9
------------------------------------------------------------------------------------
Other countries 0.1
Short-term securities & other assets less liabilities 11.2
------------------------------------------------------------------------------------
Total 100.0%
* Countries using the euro as a common currency are: Austria, Belgium, Cyprus,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the
Netherlands, Portugal, Slovenia and Spain.
Because the fund is actively managed, its holdings will change over time.
For updated information on the fund's portfolio holdings, please visit us at
americanfunds.com.
8
EuroPacific Growth Fund / Prospectus
<PAGE>
Management and organization
INVESTMENT ADVISER
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and other
funds, including the American Funds. Capital Research and Management Company is
a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at
333 South Hope Street, Los Angeles, California 90071, and 6455 Irvine Center
Drive, Irvine, California 92618. Capital Research and Management Company manages
the investment portfolio and business affairs of the fund. The total management
fee paid by the fund, as a percentage of average net assets, for the previous
fiscal year appears in the Annual Fund Operating Expenses table under "Fees and
expenses of the fund." A discussion regarding the basis for the approval of the
fund's investment advisory and service agreement by the fund's board of trustees
is contained in the fund's annual report to shareholders for the fiscal year
ended March 31, 2008.
Capital Research and Management Company manages equity assets through two
investment divisions, Capital World Investors and Capital Research Global
Investors, and manages fixed-income assets through its Fixed Income division.
Capital World Investors and Capital Research Global Investors make investment
decisions on an independent basis.
Rather than remain as investment divisions, Capital World Investors and Capital
Research Global Investors may be incorporated into wholly owned subsidiaries of
Capital Research and Management Company. In that event, Capital Research and
Management Company would continue to be the investment adviser, and day-to-day
investment management of equity assets would continue to be carried out through
one or both of these subsidiaries. Capital Research and Management Company and
the funds it advises have applied to the Securities and Exchange Commission for
an exemptive order that would give Capital Research and Management Company the
authority to use, upon approval of the funds' boards, its management
subsidiaries and affiliates to provide day-to-day investment management services
to the funds, including making changes to the management subsidiaries and
affiliates providing such services. Approval by the funds' shareholders would be
required before any authority granted under an exemptive order could be
exercised. There is no assurance that Capital Research and Management Company
will incorporate its investment divisions or seek a shareholder vote to exercise
any authority, if granted, under an exemptive order.
EXECUTION OF PORTFOLIO TRANSACTIONS
The investment adviser places orders with broker-dealers for the fund's
portfolio transactions. In selecting broker-dealers, the investment adviser
strives to obtain "best execution" (the most favorable total price reasonably
attainable under the circumstances) for the fund's
9
EuroPacific Growth Fund / Prospectus
<PAGE>
portfolio transactions, taking into account a variety of factors. Subject to
best execution, the investment adviser may consider investment research and/or
brokerage services provided to the adviser in placing orders for the fund's
portfolio transactions. The investment adviser may place orders for the fund's
portfolio transactions with broker-dealers who have sold shares of funds managed
by the investment adviser or its affiliated companies; however, it does not give
consideration to whether a broker-dealer has sold shares of the funds managed by
the investment adviser or its affiliated companies when placing any such orders
for the fund's portfolio transactions. A more detailed description of the
investment adviser's policies is included in the fund's statement of additional
information.
PORTFOLIO HOLDINGS
Portfolio holdings information for the fund is available on the American Funds
website at americanfunds.com. To reach this information, access the fund's
detailed information page on the website. A list of the fund's top 10 equity
holdings, updated as of each month-end, is generally posted to this page within
14 days after the end of the applicable month. A link to the fund's complete
list of publicly disclosed portfolio holdings, updated as of each calendar
quarter-end, is generally posted to this page within 45 days after the end of
the applicable quarter. Both lists remain available on the website until new
information for the next month or quarter is posted. Portfolio holdings
information for the fund is also contained in reports filed with the Securities
and Exchange Commission.
A description of the fund's policies and procedures regarding disclosure of
information about its portfolio holdings is available in the statement of
additional information.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach, the portfolio of
a fund is divided into segments managed by individual counselors who decide how
their respective segments will be invested. In addition, Capital Research and
Management Company's investment analysts may make investment decisions with
respect to a portion of a fund's portfolio. Investment decisions are subject to
a fund's objective(s), policies and restrictions and the oversight of the
appropriate investment-related committees of Capital Research and Management
Company and its investment divisions.
10
EuroPacific Growth Fund / Prospectus
<PAGE>
The primary individual portfolio counselors for EuroPacific Growth Fund are:
PRIMARY TITLE WITH PORTFOLIO
PORTFOLIO INVESTMENT ADVISER COUNSELOR
PORTFOLIO COUNSELOR/ COUNSELOR (OR AFFILIATE) ROLE IN
FUND TITLE EXPERIENCE AND INVESTMENT MANAGEMENT
(IF APPLICABLE) IN THIS FUND EXPERIENCE OF THE FUND
-----------------------------------------------------------------------------------------------------
MARK E. DENNING 18 years Senior Vice President - Serves as an equity
President and Trustee (plus 3 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 27 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
STEPHEN E. BEPLER 25 years Senior Vice President - Serves as an equity
Executive Vice President (since the fund's Capital Research Global portfolio counselor
inception) Investors
Investment professional for
43 years in total;
36 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
CARL M. KAWAJA 8 years Senior Vice President - Serves as an equity
Senior Vice President (plus 8 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 21 years in total;
for the fund) 18 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
ROBERT W. LOVELACE 15 years Senior Vice President - Serves as an equity
Senior Vice President (plus 7 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 24 years, all with Capital
for the fund) Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
NICHOLAS J. GRACE 6 years Senior Vice President - Serves as an equity
Vice President (plus 8 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 19 years in total;
for the fund) 15 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
ALWYN W. HEONG 13 years Senior Vice President - Serves as an equity
Vice President (plus 3 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 21 years in total;
17 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
SUNG LEE 7 years Senior Vice President - Serves as an equity
Vice President (plus 6 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 15 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
JONATHAN KNOWLES 3 years Senior Vice President - Serves as an equity
Capital World Investors portfolio counselor
Investment professional for
17 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
11
EuroPacific Growth Fund / Prospectus
<PAGE>
Information regarding the portfolio counselors' compensation, their ownership of
securities in the fund and other accounts they manage can be found in the
statement of additional information.
CERTAIN PRIVILEGES AND/OR SERVICES DESCRIBED ON THE FOLLOWING PAGES OF THIS
PROSPECTUS AND IN THE STATEMENT OF ADDITIONAL INFORMATION MAY NOT BE AVAILABLE
TO YOU, DEPENDING ON YOUR INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER.
PLEASE SEE YOUR FINANCIAL ADVISER, INVESTMENT DEALER OR RETIREMENT PLAN
RECORDKEEPER FOR MORE INFORMATION.
12
EuroPacific Growth Fund / Prospectus
<PAGE>
Purchase, exchange and sale of shares
AMERICAN FUNDS SERVICE COMPANY, THE FUND'S TRANSFER AGENT, ON BEHALF OF THE FUND
AND AMERICAN FUNDS DISTRIBUTORS,/(R)/ THE FUND'S DISTRIBUTOR, IS REQUIRED BY
LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S)
ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU
DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR
ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY
OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED
POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE
OR REQUIRED BY LAW.
PURCHASES AND EXCHANGES
Eligible retirement plans generally may open an account and purchase Class A or
R shares by contacting any investment dealer (who may impose transaction charges
in addition to those described in this prospectus) authorized to sell the fund's
shares. Some or all R share classes may not be available through certain
investment dealers. Additional shares may be purchased through a plan's
administrator or recordkeeper.
Class A shares are generally not available for retirement plans using the
PlanPremier or Recordkeeper Direct recordkeeping programs.
Class R shares generally are available only to 401(k) plans, 457 plans, 403(b)
plans, profit-sharing and money purchase pension plans, defined benefit plans
and nonqualified deferred compensation plans. Class R shares also are generally
available only to retirement plans where plan level or omnibus accounts are held
on the books of the fund. In addition, Class R-6 shares are available for
investment by American Funds Target Date Retirement Series/(R)/ and Class R-5
shares are available to other registered investment companies approved by the
fund. Class R shares generally are not available to retail nonretirement
accounts, traditional and Roth individual retirement accounts (IRAs), Coverdell
Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and 529 college savings
plans.
Shares of the fund offered through this prospectus generally may be exchanged
into shares of the same class of other American Funds. Exchanges of Class A
shares from American Funds money market funds purchased without a sales charge
generally will be subject to the appropriate sales charge.
FREQUENT TRADING OF FUND SHARES
The fund and American Funds Distributors reserve the right to reject any
purchase order for any reason. The fund is not designed to serve as a vehicle
for frequent trading. Frequent trading of fund shares may lead to increased
costs to the fund and less efficient management of the fund's portfolio,
potentially resulting in dilution of the value of the shares held by long-term
shareholders. Accordingly, purchases, including those that are part of exchange
activity that the fund or American Funds Distributors has determined could
involve actual or potential harm to the fund, may be rejected.
13
EuroPacific Growth Fund / Prospectus
<PAGE>
The fund, through its transfer agent, American Funds Service Company, maintains
surveillance procedures that are designed to detect frequent trading in fund
shares. Under these procedures, various analytics are used to evaluate factors
that may be indicative of frequent trading. For example, transactions in fund
shares that exceed certain monetary thresholds may be scrutinized. American
Funds Service Company also may review transactions that occur close in time to
other transactions in the same account or in multiple accounts under common
ownership or influence. Trading activity that is identified through these
procedures or as a result of any other information available to the fund will be
evaluated to determine whether such activity might constitute frequent trading.
These procedures may be modified from time to time as appropriate to improve the
detection of frequent trading, to facilitate monitoring for frequent trading in
particular retirement plans or other accounts, and to comply with applicable
laws.
In addition to the fund's broad ability to restrict potentially harmful trading
as described above, the fund's board of trustees has adopted a "purchase
blocking policy" under which any shareholder redeeming shares having a value of
$5,000 or more from the fund will be precluded from investing in the fund for 30
calendar days after the redemption transaction. This policy also applies to
redemptions and purchases that are part of exchange transactions. Under the
fund's purchase blocking policy, certain purchases will not be prevented and
certain redemptions will not trigger a purchase block, such as systematic
redemptions and purchases, where the entity maintaining the shareholder account
is able to identify the transaction as a systematic redemption or purchase;
purchases and redemptions of shares having a value of less than $5,000;
transactions in Class 529 shares; purchases and redemptions resulting from
reallocations by American Funds Target Date Retirement Series; retirement plan
contributions, loans and distributions (including hardship withdrawals)
identified as such on the retirement plan recordkeeper's system; and purchase
transactions involving transfers of assets, rollovers, Roth IRA conversions and
IRA recharacterizations, where the entity maintaining the shareholder account is
able to identify the transaction as one of these types of transactions.
The fund reserves the right to waive the purchase blocking policy with respect
to specific shareholder accounts in those instances where American Funds Service
Company determines that its surveillance procedures are adequate to detect
frequent trading in fund shares.
American Funds Service Company will work with certain intermediaries (such as
investment dealers holding shareholder accounts in street name, retirement plan
recordkeepers, insurance company separate accounts and bank trust companies) to
apply their own procedures, provided that American Funds Service Company
believes the intermediary's procedures are reasonably designed to enforce the
frequent trading policies of the fund. You should refer to disclosures provided
by the intermediaries with which you have an account to determine the specific
trading restrictions that apply to you.
14
EuroPacific Growth Fund / Prospectus
<PAGE>
If American Funds Service Company identifies any activity that may constitute
frequent trading, it reserves the right to contact the intermediary and request
that the intermediary either provide information regarding an account owner's
transactions or restrict the account owner's trading. If American Funds Service
Company is not satisfied that the intermediary has taken appropriate action,
American Funds Service Company may terminate the intermediary's ability to
transact in fund shares.
There is no guarantee that all instances of frequent trading in fund shares will
be prevented.
NOTWITHSTANDING THE FUND'S SURVEILLANCE PROCEDURES AND PURCHASE BLOCKING POLICY,
ALL TRANSACTIONS IN FUND SHARES REMAIN SUBJECT TO THE FUND'S AND AMERICAN FUNDS
DISTRIBUTORS' RIGHT TO RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING
THE TYPES OF TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER
A BLOCK UNDER THE PURCHASE BLOCKING POLICY). SEE THE STATEMENT OF ADDITIONAL
INFORMATION FOR MORE INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY
ADDRESS OTHER POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS.
SALES
Please contact your plan administrator or recordkeeper in order to sell shares
from your retirement plan.
RIGHT OF REINVESTMENT
If you notify American Funds Service Company, you may reinvest proceeds from a
redemption, dividend payment or capital gain distribution without a sales charge
in the same fund or other American Funds, provided that the reinvestment occurs
within 90 days after the date of the redemption or distribution and is made into
the same account from which you redeemed the shares or received the
distribution. If the account has been closed, you may reinvest without a sales
charge if the new receiving account has the same registration as the closed
account. Proceeds will be reinvested in the same share class from which the
original redemption or distribution was made. Redemption proceeds of Class A
shares representing direct purchases in American Funds money market funds that
are reinvested in non-money market American Funds will be subject to a sales
charge. Proceeds will be reinvested at the next calculated net asset value after
your request is received and accepted by American Funds Service Company. For
purposes of this "right of reinvestment policy," automatic transactions
(including, for example, automatic purchases, withdrawals and payroll
deductions) and ongoing retirement plan contributions are not eligible for
investment without a sales charge. See the statement of additional information
for further information. You may not reinvest proceeds in the American Funds as
described in this paragraph if such proceeds are subject to a purchase block as
described under "Frequent trading of fund shares" in this prospectus. This
paragraph does not apply to certain rollover investments as described under
"Rollovers from retirement plans to IRAs" in this prospectus.
15
EuroPacific Growth Fund / Prospectus
<PAGE>
VALUING SHARES
The net asset value of each share class of the fund is the value of a single
share. The fund calculates the net asset value each day the New York Stock
Exchange is open for trading as of approximately 4 p.m. New York time, the
normal close of regular trading. Assets are valued primarily on the basis of
market quotations. However, the fund has adopted procedures for making "fair
value" determinations if market quotations are not readily available or are not
considered reliable. For example, if events occur between the close of markets
outside the United States and the close of regular trading on the New York Stock
Exchange that, in the opinion of the investment adviser, materially affect the
value of any of the fund's securities that principally trade in those
international markets, those securities will be valued in accordance with fair
value procedures. Use of these procedures is intended to result in more
appropriate net asset values. In addition, such use will reduce, if not
eliminate, potential arbitrage opportunities otherwise available to short-term
investors.
Because the fund may hold securities that are primarily listed on foreign
exchanges that trade on weekends or days when the fund does not price its
shares, the value of securities held in the fund may change on days when you
will not be able to purchase or redeem fund shares.
Your shares will be purchased at the net asset value (plus any applicable sales
charge in the case of Class A shares) or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request.
MOVING BETWEEN SHARE CLASSES AND ACCOUNTS
Please see the statement of additional information for details and limitations
on moving investments in certain share classes to different share classes and on
moving investments held in certain accounts to different accounts.
16
EuroPacific Growth Fund / Prospectus
<PAGE>
Sales charges
CLASS A SHARES
The initial sales charge you pay each time you buy Class A shares differs
depending upon the amount you invest and may be reduced or eliminated for larger
purchases as indicated below. The "offering price," the price you pay to buy
shares, includes any applicable sales charge, which will be deducted directly
from your investment. Shares acquired through reinvestment of dividends or
capital gain distributions are not subject to an initial sales charge.
SALES CHARGE AS A
PERCENTAGE OF:
DEALER
NET COMMISSION
OFFERING AMOUNT AS A PERCENTAGE
INVESTMENT PRICE INVESTED OF OFFERING PRICE
------------------------------------------------------------------------------
Less than $25,000 5.75% 6.10% 5.00%
------------------------------------------------------------------------------
$25,000 but less than $50,000 5.00 5.26 4.25
------------------------------------------------------------------------------
$50,000 but less than $100,000 4.50 4.71 3.75
------------------------------------------------------------------------------
$100,000 but less than $250,000 3.50 3.63 2.75
------------------------------------------------------------------------------
$250,000 but less than $500,000 2.50 2.56 2.00
------------------------------------------------------------------------------
$500,000 but less than $750,000 2.00 2.04 1.60
------------------------------------------------------------------------------
$750,000 but less than $1 million 1.50 1.52 1.20
------------------------------------------------------------------------------
$1 million or more and certain other none none see below
investments described below
------------------------------------------------------------------------------
The sales charge, expressed as a percentage of the offering price or the net
amount invested, may be higher or lower than the percentages described in the
table above due to rounding. This is because the dollar amount of the sales
charge is determined by subtracting the net asset value of the shares purchased
from the offering price, which is calculated to two decimal places using
standard rounding criteria. The impact of rounding will vary with the size of
the investment and the net asset value of the shares.
CLASS A PURCHASES NOT SUBJECT TO SALES CHARGES
The following investments are not subject to any initial or contingent deferred
sales charge if American Funds Service Company is properly notified of the
nature of the investment:
. investments made by accounts that are part of certain qualified fee-based
programs and that purchased Class A shares before the discontinuation of your
investment dealer's load-waived Class A share program with the American Funds;
and
. certain rollover investments from retirement plans to IRAs (see "Rollovers
from retirement plans to IRAs" in this prospectus for more information).
17
EuroPacific Growth Fund / Prospectus
<PAGE>
The distributor may pay dealers up to 1% on investments made in Class A shares
with no initial sales charge. The fund may reimburse the distributor for these
payments through its plans of distribution (see "Plans of distribution" in this
prospectus).
Certain other investors may qualify to purchase shares without a sales charge,
such as employees of investment dealers and registered investment advisers
authorized to sell American Funds, and employees of The Capital Group Companies.
Please see the statement of additional information for more information.
EMPLOYER-SPONSORED RETIREMENT PLANS
Employer-sponsored retirement plans that are eligible to purchase Class R
shares may instead purchase Class A shares and pay the applicable Class A sales
charge, provided their recordkeepers can properly apply a sales charge on plan
investments. These plans are not eligible to make initial purchases of $1
million or more in Class A shares and thereby invest in Class A shares without
a sales charge, nor are they eligible to establish a statement of intention
that qualifies them to purchase Class A shares without a sales charge. More
information about statements of intention can be found under "Sales charge
reductions" in this prospectus. Plans investing in Class A shares with a sales
charge may purchase additional Class A shares in accordance with the sales
charge table in this prospectus.
Employer-sponsored retirement plans that invested in Class A shares without any
sales charge on or before March 31, 2004, and that continue to meet the
eligibility requirements in effect as of that date for purchasing Class A
shares at net asset value, may continue to purchase Class A shares without any
initial or contingent deferred sales charge.
A 403(b) plan may not invest in Class A, B or C shares on or after January 1,
2009, unless such plan was invested in Class A, B or C shares prior to that
date.
CLASS R SHARES
Class R shares are sold without any initial or contingent deferred sales charge.
The distributor will pay dealers annually an asset-based compensation of up to
1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .50%
for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation
is paid from fund assets on sales of Class R-5 or R-6 shares. The fund may
reimburse the distributor for these payments through its plans of distribution
(see "Plans of distribution" in this prospectus).
18
EuroPacific Growth Fund / Prospectus
<PAGE>
Sales charge reductions
TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR
FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU
PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR
ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A
REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE
OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales
charge discount, it may be necessary for you to provide your adviser or American
Funds Service Company with information and records (including account
statements) of all relevant accounts invested in the American Funds.
IN ADDITION TO THE INFORMATION IN THIS PROSPECTUS, YOU MAY OBTAIN MORE
INFORMATION ABOUT SHARE CLASSES, SALES CHARGES AND SALES CHARGE REDUCTIONS
THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS WEBSITE AT
AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR FROM YOUR
FINANCIAL ADVISER.
REDUCING YOUR CLASS A INITIAL SALES CHARGE
Consistent with the policies described in this prospectus, two or more
retirement plans of an employer or employer's affiliates may combine all of
their American Funds investments to reduce their Class A sales charge. Certain
investments in the American Funds Target Date Retirement Series may also be
combined for this purpose. Please see the American Funds Target Date Retirement
Series prospectus for further information. However, for this purpose,
investments representing direct purchases of American Funds money market funds
are excluded. Following are different ways that you may qualify for a reduced
Class A sales charge:
CONCURRENT PURCHASES
Simultaneous purchases of any class of shares of two or more American Funds
(excluding American Funds money market funds) may be combined to qualify for a
reduced Class A sales charge.
RIGHTS OF ACCUMULATION
You may take into account your accumulated holdings in all share classes of the
American Funds (excluding American Funds money market funds) to determine the
initial sales charge you pay on each purchase of Class A shares. Subject to
your investment dealer's or recordkeeper's capabilities, your accumulated
holdings will be calculated as the higher of (a) the current value of your
existing holdings or (b) the amount you invested (including reinvested
dividends and capital gains, but excluding capital appreciation) less any
withdrawals. Please see the statement of additional information for further
details. You should retain any records necessary to substantiate the historical
amounts you have invested.
19
EuroPacific Growth Fund / Prospectus
<PAGE>
STATEMENT OF INTENTION
You may reduce your Class A sales charge by establishing a statement of
intention. A statement of intention allows you to combine all purchases of all
share classes of the American Funds (excluding American Funds money market
funds) you intend to make over a 13-month period to determine the applicable
sales charge; however, purchases made under a right of reinvestment,
appreciation of your holdings, and reinvested dividends and capital gains do
not count as purchases made during the statement period. The market value of
your existing holdings eligible to be aggregated as of the day immediately
before the start of the statement period may be credited toward satisfying the
statement. A portion of your account may be held in escrow to cover additional
Class A sales charges that may be due if your total purchases over the
statement period do not qualify you for the applicable sales charge reduction.
Employer-sponsored retirement plans may be restricted from establishing
statements of intention. See "Sales charges" in this prospectus for more
information.
RIGHT OF REINVESTMENT
Please see the "Sales" section of "Purchase, exchange and sale of shares" in
this prospectus for information on how to reinvest proceeds from a redemption,
dividend payment or capital gain distribution without a sales charge.
20
EuroPacific Growth Fund / Prospectus
<PAGE>
Rollovers from retirement plans to IRAs
Assets from retirement plans may be invested in Class A, B, C or F shares
through an IRA rollover, subject to the other provisions of this prospectus and
the prospectus for nonretirement plan shareholders. More information on Class B,
C and F shares can be found in the fund's prospectus for nonretirement plan
shareholders. Rollovers invested in Class A shares from retirement plans will be
subject to applicable sales charges. The following rollovers to Class A shares
will be made without a sales charge:
. rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as
custodian; and
. rollovers to IRAs that are attributable to American Funds investments, if they
meet the following requirements:
-- the assets being rolled over were invested in American Funds at the time of
distribution; and
-- the rolled over assets are contributed to an American Funds IRA with Capital
Bank and Trust Company as custodian.
IRA rollover assets that roll over without a sales charge as described above
will not be subject to a contingent deferred sales charge and investment dealers
will be compensated solely with an annual service fee that begins to accrue
immediately. IRA rollover assets invested in Class A shares that are not
attributable to American Funds investments, as well as future contributions to
the IRA, will be subject to sales charges and the terms and conditions generally
applicable to Class A share investments as described in this prospectus and the
statement of additional information.
Plans of distribution
The fund has plans of distribution or "12b-1 plans" for certain share classes,
under which it may finance activities primarily intended to sell shares,
provided the categories of expenses are approved in advance by the fund's board
of trustees. The plans provide for payments, based on annualized percentages of
average daily net assets, of up to .25% for Class A shares, up to 1.00% for
Class R-1 and R-2 shares, up to .75% for Class R-3 shares and up to .50% for
Class R-4 shares. For all share classes indicated above, up to .25% of these
expenses may be used to pay service fees to qualified dealers for providing
certain shareholder services. The amount remaining for each share class may be
used for distribution expenses.
The 12b-1 fees paid by the fund, as a percentage of average net assets for the
previous fiscal year, are indicated in the Annual Fund Operating Expenses table
under "Fees and expenses of the fund" in this prospectus. Since these fees are
paid out of the fund's assets or income on an ongoing basis, over time they will
increase the cost and reduce the return of your investment.
21
EuroPacific Growth Fund / Prospectus
<PAGE>
Other compensation to dealers
American Funds Distributors, at its expense, currently provides additional
compensation to investment dealers. These payments may be made, at the
discretion of American Funds Distributors, to the top 100 dealers (or their
affiliates) that have sold shares of the American Funds. The level of payments
made to a qualifying firm in any given year will vary and in no case would
exceed the sum of (a) .10% of the previous year's American Funds sales by that
dealer and (b) .02% of American Funds assets attributable to that dealer. For
calendar year 2008, aggregate payments made by American Funds Distributors to
dealers were less than .02% of the average assets of the American Funds.
Aggregate payments may also change from year to year. A number of factors will
be considered in determining payments, including the qualifying dealer's sales,
assets and redemption rates, and the quality of the dealer's relationship with
American Funds Distributors. American Funds Distributors makes these payments to
help defray the costs incurred by qualifying dealers in connection with efforts
to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder
needs. American Funds Distributors will, on an annual basis, determine the
advisability of continuing these payments. American Funds Distributors may also
pay expenses associated with meetings conducted by dealers outside the top 100
firms to facilitate educating financial advisers and shareholders about the
American Funds. If investment advisers, distributors or other affiliates of
mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for
recommending a particular mutual fund over other mutual funds. You should
consult with your financial adviser and review carefully any disclosure by your
financial adviser's firm as to compensation received.
22
EuroPacific Growth Fund / Prospectus
<PAGE>
Distributions and taxes
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to shareholders, usually in December.
Capital gains, if any, are usually distributed in December. When a dividend or
capital gain is distributed, the net asset value per share is reduced by the
amount of the payment.
All dividends and capital gain distributions paid to retirement plan
shareholders will be automatically reinvested.
TAXES ON DIVIDENDS AND DISTRIBUTIONS
Dividends and capital gains distributed by the fund to tax-deferred retirement
plan accounts are not taxable currently.
TAXES ON TRANSACTIONS
Exchanges within a tax-deferred retirement plan account will not result in a
capital gain or loss for federal or state income tax purposes. With limited
exceptions, distributions from a retirement plan account are taxable as ordinary
income.
PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION.
23
EuroPacific Growth Fund / Prospectus
<PAGE>
Financial highlights/1/
The Financial Highlights table is intended to help you understand the fund's
results for the past five fiscal years. Certain information reflects financial
results for a single share of a particular class. A similar table will be shown
for Class R-6 shares beginning with the fund's fiscal year ending after the date
the share class is first offered. The total returns in the table represent the
rate that an investor would have earned or lost on an investment in the fund
(assuming reinvestment of all dividends and capital gain distributions). Where
indicated, figures in the table reflect the impact, if any, of certain
reimbursements/waivers from Capital Research and Management Company. For more
information about these reimbursements/waivers, see the footnotes to the Annual
Fund Operating Expenses table under "Fees and expenses of the fund" in this
prospectus and the fund's annual report. The information in the Financial
Highlights table has been audited by Deloitte & Touche LLP (except for the six
months ended September 30, 2008), whose report, along with the fund's financial
statements, is included in the statement of additional information, which is
available upon request. The information for the six-month period presented has
been derived from the fund's unaudited financial statements and includes all
adjustments that management considers necessary for a fair presentation of such
information for the period presented.
INCOME FROM INVESTMENT OPERATIONS/2/
Net
(losses)
gains
on securities
Net asset (both
value, Net realized Total from
beginning investment and investment
of period income unrealized) operations
---------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $46.83 $.70% $(10.05) $(9.35)
Year ended 3/31/2008 47.92 .95 2.60 3.55
Year ended 3/31/2007 44.20 .71 6.49 7.20
Year ended 3/31/2006 35.63 .62 9.99 10.61
Year ended 3/31/2005 32.26 .43 3.45 3.88
Year ended 3/31/2004 20.78 .29 11.50 11.79
---------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ 45.45 .49 (9.70) (9.21)
Year ended 3/31/2008 46.71 .49 2.54 3.03
Year ended 3/31/2007 43.29 .28 6.38 6.66
Year ended 3/31/2006 35.04 .26 9.82 10.08
Year ended 3/31/2005 31.89 .11 3.43 3.54
Year ended 3/31/2004 20.67 .04 11.41 11.45
---------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $45.62 $.50 $ (9.75) $(9.25)
Year ended 3/31/2008 46.84 .50 2.54 3.04
Year ended 3/31/2007 43.36 .30 6.35 6.65
Year ended 3/31/2006 35.07 .26 9.83 10.09
Year ended 3/31/2005 31.86 .14 3.41 3.55
Year ended 3/31/2004 20.64 .05 11.40 11.45
---------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ 46.04 .63 (9.87) (9.24)
Year ended 3/31/2008 47.20 .78 2.54 3.32
Year ended 3/31/2007 43.64 .52 6.41 6.93
Year ended 3/31/2006 35.23 .46 9.89 10.35
Year ended 3/31/2005 31.96 .30 3.42 3.72
Year ended 3/31/2004 20.68 .15 11.45 11.60
---------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ 46.17 .67 (9.89) (9.22)
Year ended 3/31/2008 47.31 .88 2.60 3.48
Year ended 3/31/2007 43.69 .64 6.45 7.09
Year ended 3/31/2006 35.25 .57 9.91 10.48
Year ended 3/31/2005 31.95 .39 3.44 3.83
Year ended 3/31/2004 20.63 .27 11.41 11.68
---------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ 46.86 .75 (10.05) (9.30)
Year ended 3/31/2008 47.94 1.05 2.63 3.68
Year ended 3/31/2007 44.22 .78 6.53 7.31
Year ended 3/31/2006 35.64 .69 10.02 10.71
Year ended 3/31/2005 32.26 .50 3.47 3.97
Year ended 3/31/2004 20.78 .35 11.51 11.86
DIVIDENDS AND DISTRIBUTIONS
Dividends Total Net asset
(from net Distributions dividends value,
investment (from and end of Total
income) capital gains) distributions period return/3,4/
----------------------------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $-- $ -- $ -- $37.48 (19.97)%
Year ended 3/31/2008 (1.01) (3.63) (4.64) 46.83 6.40
Year ended 3/31/2007 (.77) (2.71) (3.48) 47.92 16.63
Year ended 3/31/2006 (.72) (1.32) (2.04) 44.20 30.25
Year ended 3/31/2005 (.51) -- (.51) 35.63 12.08
Year ended 3/31/2004 (.31) -- (.31) 32.26 57.11
----------------------------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ -- -- -- 36.24 (20.26)
Year ended 3/31/2008 (.66) (3.63) (4.29) 45.45 5.52
Year ended 3/31/2007 (.53) (2.71) (3.24) 46.71 15.68
Year ended 3/31/2006 (.51) (1.32) (1.83) 43.29 29.16
Year ended 3/31/2005 (.39) -- (.39) 35.04 11.18
Year ended 3/31/2004 (.23) -- (.23) 31.89 55.72
----------------------------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $-- $ -- $ -- $36.37 (20.28)%
Year ended 3/31/2008 (.63) (3.63) (4.26) 45.62 5.51
Year ended 3/31/2007 (.46) (2.71) (3.17) 46.84 15.66
Year ended 3/31/2006 (.48) (1.32) (1.80) 43.36 29.20
Year ended 3/31/2005 (.34) -- (.34) 35.07 11.17
Year ended 3/31/2004 (.23) -- (.23) 31.86 55.78
----------------------------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ -- -- -- 36.80 (20.07)
Year ended 3/31/2008 (.85) (3.63) (4.48) 46.04 6.05
Year ended 3/31/2007 (.66) (2.71) (3.37) 47.20 16.20
Year ended 3/31/2006 (.62) (1.32) (1.94) 43.64 29.85
Year ended 3/31/2005 (.45) -- (.45) 35.23 11.68
Year ended 3/31/2004 (.32) -- (.32) 31.96 56.46
----------------------------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ -- -- -- 35.95 (19.97)
Year ended 3/31/2008 (.99) (3.63) (4.62) 46.17 6.32
Year ended 3/31/2007 (.76) (2.71) (3.47) 47.31 16.61
Year ended 3/31/2006 (.72) (1.32) (2.04) 43.69 30.20
Year ended 3/31/2005 (.53) -- (.53) 35.25 12.04
Year ended 3/31/2004 (.36) -- (.36) 31.95 57.00
----------------------------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ -- -- -- 37.56 (19.85)
Year ended 3/31/2008 (1.13) (3.63) (4.76) 46.86 6.64
Year ended 3/31/2007 (.88) (2.71) (3.59) 47.94 16.91
Year ended 3/31/2006 (.81) (1.32) (2.13) 44.22 30.56
Year ended 3/31/2005 (.59) -- (.59) 35.64 12.38
Year ended 3/31/2004 (.38) -- (.38) 32.26 57.49
Ratio of Ratio of
expenses expenses
to average to average
net assets net assets Ratio of
Net assets, before after net
end of reim- reim- income to
period bursements/ bursements/ average
(in millions) waivers waivers/4/ net assets/4/
---------------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $43,624 .80 %/6/ .76 %/6/ 3.08 %/6/
Year ended 3/31/2008 57,445 .79 .74 1.87
Year ended 3/31/2007 57,407 .79 .75 1.54
Year ended 3/31/2006 50,209 .81 .76 1.58
Year ended 3/31/2005 37,515 .83 .82 1.31
Year ended 3/31/2004 32,759 .87 .87 1.08
---------------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ 181 1.59/6/ 1.54/6/ 2.25/6/
Year ended 3/31/2008 190 1.61 1.57 .99
Year ended 3/31/2007 136 1.62 1.58 .61
Year ended 3/31/2006 66 1.65 1.61 .66
Year ended 3/31/2005 29 1.72 1.68 .34
Year ended 3/31/2004 8 1.82 1.71 .15
---------------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $ 1,059 1.62 %/6/ 1.58 %/6/ 2.24 %/6/
Year ended 3/31/2008 1,296 1.61 1.57 1.01
Year ended 3/31/2007 1,093 1.67 1.59 .66
Year ended 3/31/2006 735 1.76 1.60 .68
Year ended 3/31/2005 375 1.90 1.64 .42
Year ended 3/31/2004 174 2.08 1.67 .17
---------------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ 5,520 1.08/6/ 1.04/6/ 2.82/6/
Year ended 3/31/2008 7,639 1.11 1.07 1.55
Year ended 3/31/2007 6,918 1.15 1.10 1.14
Year ended 3/31/2006 4,336 1.15 1.11 1.18
Year ended 3/31/2005 2,321 1.18 1.16 .89
Year ended 3/31/2004 1,052 1.29 1.29 .51
---------------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ 9,491 .85/6/ .80/6/ 2.99/6/
Year ended 3/31/2008 10,970 .85 .81 1.75
Year ended 3/31/2007 8,627 .87 .82 1.41
Year ended 3/31/2006 5,352 .87 .83 1.45
Year ended 3/31/2005 2,668 .90 .88 1.17
Year ended 3/31/2004 1,106 .92 .92 .92
---------------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ 17,437 .53/6/ .48/6/ 3.30/6/
Year ended 3/31/2008 19,731 .55 .50 2.05
Year ended 3/31/2007 14,993 .57 .52 1.70
Year ended 3/31/2006 9,059 .58 .53 1.74
Year ended 3/31/2005 4,507 .59 .58 1.51
Year ended 3/31/2004 2,473 .61 .61 1.27
24
EuroPacific Growth Fund / Prospectus
<PAGE>
[This page is intentionally left blank for this filing.]
25
EuroPacific Growth Fund / Prospectus
<PAGE>
SIX MONTHS YEAR ENDED MARCH 31
ENDED
SEPTEMBER 30, 2008/5/ 2008 2007 2006 2005 2004
---------------------------------------------------------------------------------------
PORTFOLIO TURNOVER
RATE FOR ALL CLASSES 17% 38% 27% 35% 30% 25%
OF SHARES
1 Based on operations for the periods shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
2 Based on average shares outstanding.
3 Total returns exclude any applicable sales charges.
4 This column reflects the impact, if any, of certain reimbursements/waivers
from Capital Research and Management Company. During some of the periods shown,
Capital Research and Management Company reduced fees for investment advisory
services. In addition, during some of the periods shown, Capital Research and
Management Company paid a portion of the fund's transfer agent fees for certain
retirement plan share classes.
5 Unaudited.
6 Annualized.
26
EuroPacific Growth Fund / Prospectus
<PAGE>
NOTES
27
EuroPacific Growth Fund / Prospectus
<PAGE>
[logo - American Funds /(R)/] The right choice for the long term/(R)/
FOR SHAREHOLDER American Funds Service Company
SERVICES 800/421-0180
FOR RETIREMENT PLAN Call your employer or plan
SERVICES administrator
FOR ADVISER American Funds Distributors
MARKETING 800/421-9900
americanfunds.com
FOR 24 For Class R share information,
-HOUR INFORMATION visit
AmericanFundsRetirement.com
Telephone calls you have with the American Funds
organization may be monitored or recorded for quality
assurance, verification and/or recordkeeping purposes.
By speaking with us on the telephone, you are giving
your consent to such monitoring and recording.
-----------------------------------------------------------------------------------
MULTIPLE TRANSLATIONS This prospectus may be translated into other languages.
If there is any inconsistency or ambiguity in the meaning of any translated word
or phrase, the English text will prevail.
ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain
additional information about the fund, including financial statements,
investment results, portfolio holdings, a discussion of market conditions and
the fund's investment strategies and the independent registered public
accounting firm's report (in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI,
as amended from time to time, contains more detailed information about the fund,
including the fund's financial statements, and is incorporated by reference into
this prospectus. This means that the current SAI, for legal purposes, is part of
this prospectus. The codes of ethics describe the personal investing policies
adopted by the fund, the fund's investment adviser and its affiliated companies.
The codes of ethics and current SAI are on file with the Securities and Exchange
Commission (SEC). These and other related materials about the fund are available
for review or to be copied at the SEC's Public Reference Room in Washington, DC
(202/551-8090) or on the EDGAR database on the SEC's website at sec.gov or,
after payment of a duplicating fee, via e-mail request to publicinfo@sec.gov or
by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington,
DC 20549-1520. The codes of ethics, current SAI and shareholder reports are also
available, free of charge, on americanfunds.com.
E-DELIVERY AND HOUSEHOLD MAILINGS Each year you are automatically sent an
updated prospectus and annual and semi-annual reports for the fund. You may also
occasionally receive proxy statements for the fund. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents will
be sent to shareholders who are part of the same family and share the same
household address. You may elect to receive these documents electronically in
lieu of paper form by enrolling in e-delivery on our website, americanfunds.com.
If you would like to opt out of household-based mailings or receive a
complimentary copy of the current SAI, codes of ethics or annual/semi-annual
report to shareholders, please call American Funds Service Company at
800/421-0180 or write to the secretary of the fund at 333 South Hope Street, Los
Angeles, California 90071
SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) Shareholders may obtain
information about SIPC/(R)/ on its website at sipc.org or by calling
202/371-8300.
Investment Company File No. 811-03734
RPGEPR-916-0509P Litho in USA CGD/RRD/8031
-------------------------------------------------------------------------------
THE CAPITAL GROUP COMPANIES
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
THE FUND PROVIDES SPANISH TRANSLATION IN CONNECTION WITH THE
PUBLIC OFFERING AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR
AND ACCURATE ENGLISH TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS
FOR THE FUND.
/s/ VINCENT P. CORTI
VINCENT P. CORTI
SECRETARY
<PAGE>
[logo - American Funds /(R)/] The right choice for the long term/(R)/
EuroPacific
Growth Fund/(R)/
RETIREMENT PLAN
PROSPECTUS
May 1, 2009
TABLE OF CONTENTS
1 Risk/Return summary
4 Fees and expenses of the fund
6 Investment objective, strategies and risks
9 Management and organization
13 Purchase, exchange and sale of shares
17 Sales charges
19 Sales charge reductions
21 Rollovers from retirement plans to IRAs
21 Plans of distribution
22 Other compensation to dealers
23 Distributions and taxes
24 Financial highlights
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF
THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE>
[This page is intentionally left blank for this filing.]
<PAGE>
Risk/Return summary
The fund seeks to make your investment grow over time by investing primarily in
stocks of issuers located in Europe and the Pacific Basin.
The fund is designed for investors seeking capital appreciation and
diversification through investments in stocks, consistent with the fund's
investment objective. Investors in the fund should have a long-term perspective
and, for example, be able to tolerate potentially sharp, short-term declines in
value.
Your investment in the fund is subject to various risks. Consequently, the
fund's portfolio holdings may lose value. Declines in the value of certain
stocks held by the fund could be in response to economic, political and/or
social events taking place around the world. For example, increases in the
prices of basic commodities, such as oil or grains, can negatively impact the
value of the stocks of certain companies. Further, changes in relationships
among global currencies may trigger declines in the value of the fund's
holdings. Investing in companies based in developing countries may entail
greater risks. Finally, the fund's investment results will depend on the ability
of the fund's investment adviser to navigate these risks.
Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.
YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS MAY BE
GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
1
EuroPacific Growth Fund / Prospectus
<PAGE>
HISTORICAL INVESTMENT RESULTS
The bar chart below shows how the fund's investment results have varied from
year to year, and the Investment Results table on page 3 shows how the fund's
average annual total returns for various periods compare with different broad
measures of market performance. This information provides some indication of the
risks of investing in the fund. All fund results reflect the reinvestment of
dividends and capital gain distributions, if any. Unless otherwise noted, fund
results reflect any fee waivers and/or expense reimbursements in effect during
the period presented. Past results are not predictive of future results.
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if a sales charge were included,
results would be lower.)
[begin bar chart]
1999 56.97%
2000 -17.84
2001 -12.18
2002 -13.61
2003 32.91
2004 19.69
2005 21.12
2006 21.87
2007 18.96
2008 -40.53
[end bar chart]
Highest/Lowest quarterly results during this time period were:
HIGHEST 29.09% (quarter ended December 31, 1999)
LOWEST -19.28% (quarter ended December 31, 2008)
2
EuroPacific Growth Fund / Prospectus
<PAGE>
Unlike the bar chart on the previous page, the Investment Results table below
reflects, as required by Securities and Exchange Commission rules, the fund's
investment results with the following maximum initial sales charge imposed:
. Class A share results reflect the maximum initial sales charge of 5.75%. This
charge is reduced for purchases of $25,000 or more and eliminated for
purchases of $1 million or more.
. Class R shares are sold without any initial sales charge.
Results would be higher if calculated without a sales charge.
Unlike the Investment Results table below, the Additional Investment Results
table on page 7 reflects the fund's results calculated without a sales charge.
INVESTMENT RESULTS (WITH A MAXIMUM SALES CHARGE)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2008:
1 YEAR 5 10 LIFETIME/1/
YEARS YEARS
----------------------------------------------------------------------
CLASS A -- FIRST SOLD 4/16/84 -43.94% 3.33% 4.36% 11.05%
1 YEAR 5 LIFETIME/1/
YEARS
---------------------------------------------------------------
CLASS R-1 -- FIRST SOLD 6/17/02 -41.01% 3.69% 5.19%
CLASS R-2 -- FIRST SOLD 5/31/02 -41.04 3.69 4.49
CLASS R-3 -- FIRST SOLD 5/21/02 -40.71 4.21 4.79
CLASS R-4 -- FIRST SOLD 6/7/02 -40.56 4.51 5.63
CLASS R-5 -- FIRST SOLD 5/15/02 -40.38 4.81 5.46
1 YEAR 5 10 LIFETIME/2/
YEARS YEARS
-------------------------------------------------------------------------------
INDEXES
MSCI/(R)/ All Country World Index ex -45.24% 3.00% 2.27% N/A
USA/3/
Lipper International Funds Average/4/ -44.24 1.38 2.15 8.76%
MSCI EAFE Index/5/ -43.06 2.10 1.18 8.79
1 Lifetime results for each share class are measured from the date the share
class was first sold.
2 Lifetime results for the index(es) shown are measured from the date Class A
shares were first sold. The funds or securities that compose each index may
vary over time.
3 MSCI All Country World Index ex USA is a free float-adjusted market
capitalization-weighted index that is designed to measure equity market
performance in the global developed and emerging markets, excluding the United
States. The index consists of 46 developed and emerging market country indexes.
This index is unmanaged and its results include reinvested dividends and/or
distributions, but do not reflect the effect of sales charges, commissions,
expenses or taxes. This index was not in existence as of the date the fund
began investment operations; therefore, lifetime results are not available.
4 Lipper International Funds Average is composed of funds that invest assets in
securities with primary trading markets outside the United States. The results
of the underlying funds in the average include the reinvestment of dividends
and capital gain distributions, as well as brokerage commissions paid by the
funds for portfolio transactions, but do not reflect the effect of sales
charges or taxes.
5 MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted
market capitalization-weighted index that is designed to measure developed
equity market performance, excluding the United States and Canada. This index
is unmanaged and its results include reinvested dividends and/or distributions,
but do not reflect the effect of sales charges, commissions, expenses or taxes.
3
EuroPacific Growth Fund / Prospectus
<PAGE>
Fees and expenses of the fund
These tables describe the fees and expenses that you may pay if you buy and hold
shares of the fund.
SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)
CLASS A ALL R SHARE CLASSES
------------------------------------------------------------------------------
Maximum initial sales charge on purchases 5.75%/*/ none
(as a percentage of offering price)
------------------------------------------------------------------------------
Maximum sales charge on reinvested dividends none none
------------------------------------------------------------------------------
Maximum contingent deferred sales charge none none
------------------------------------------------------------------------------
Redemption or exchange fees none none
* The initial sales charge is reduced for purchases of $25,000 or more and
eliminated for purchases of $1 million or more.
ANNUAL FUND OPERATING EXPENSES (DEDUCTED FROM FUND ASSETS)
CLASS CLASS CLASS CLASS CLASS CLASS
CLASS A R-1 R-2 R-3 R-4 R-5/3/ R-6/3,4/
-------------------------------------------------------------------------------
Management fees/1/ 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42%
-------------------------------------------------------------------------------
Distribution and/or 0.25 1.00 0.75 0.50 0.25 none none
service (12b-1)
fees/2/
-------------------------------------------------------------------------------
Other expenses/1/ 0.12 0.19 0.44 0.19 0.18 0.13 0.08
-------------------------------------------------------------------------------
Total annual fund 0.79 1.61 1.61 1.11 0.85 0.55 0.50
operating expenses/1/
-------------------------------------------------------------------------------
1 The fund's investment adviser waived a portion of its management fees from
September 1, 2004, through December 31, 2008. In addition, the investment
adviser paid a portion of the fund's transfer agent fees for certain R share
classes. Management fees, other expenses and total annual fund operating
expenses in the table do not reflect any waiver or reimbursement. Information
regarding the effect of any waiver/reimbursement on total annual fund operating
expenses can be found in the Financial Highlights table in this prospectus and
in the fund's annual report.
2 Class A, R-1, R-2, R-3 and R-4 12b-1 fees may not exceed .25%, 1.00%, 1.00%,
.75% and .50%, respectively, of the class's average net assets annually.
3 Class R-5 and R-6 shares are generally available only to fee-based programs
and/or through retirement plan intermediaries.
4 Based on estimated amounts for the current fiscal year. Amounts for all other
share classes are based on amounts incurred in the fund's fiscal year ended
March 31, 2008.
4
EuroPacific Growth Fund / Prospectus
<PAGE>
OTHER EXPENSES
The "Other expenses" items in the table above include custodial, legal, transfer
agent and subtransfer agent/recordkeeping payments, as well as various other
expenses. Subtransfer agent/recordkeeping payments may be made to the fund's
investment adviser, affiliates of the adviser and unaffiliated third parties for
providing recordkeeping and other administrative services to retirement plans
invested in the fund in lieu of the transfer agent providing such services. The
amount paid for subtransfer agent/recordkeeping services will vary depending on
the share class selected and the entity receiving the payments. The table below
shows the maximum payments to entities providing services to retirement plans.
PAYMENTS TO UNAFFILIATED
PAYMENTS TO AFFILIATED ENTITIES ENTITIES
-------------------------------------------------------------------------------
Class A .05% of assets or .05% of assets or
$12 per participant position/1/ $12 per participant position/1/
-------------------------------------------------------------------------------
Class R-1 .10% of assets .10% of assets
-------------------------------------------------------------------------------
Class R-2 .15% of assets plus $27 per .25% of assets
participant position/2/ or .35%
of assets/3/
-------------------------------------------------------------------------------
Class R-3 .10% of assets plus $12 per .15% of assets
participant position/2/ or .19%
of assets/3/
Class R-4 .10% of assets .10% of assets
-------------------------------------------------------------------------------
Class R-5 .05% of assets .05% of assets
-------------------------------------------------------------------------------
Class R-6 none none
-------------------------------------------------------------------------------
1 Payment amount depends on the date upon which services commenced.
2 Payment with respect to Recordkeeper Direct/(R)/ program.
3 Payment with respect to PlanPremier/(R)/ program.
EXAMPLES
The examples below are intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The examples assume that
you invest $10,000 in the fund for the time periods indicated, that your
investment has a 5% return each year, that all dividends and capital gain
distributions are reinvested, and that the fund's operating expenses remain the
same as shown above. The examples do not reflect the impact of any fee waivers
or expense reimbursements.
Although your actual costs may be higher or lower, based on these assumptions,
your cumulative estimated expenses would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------
Class A* $651 $813 $989 $1,497
--------------------------------------------------------------------
Class R-1 164 508 876 1,911
--------------------------------------------------------------------
Class R-2 164 508 876 1,911
--------------------------------------------------------------------
Class R-3 113 353 612 1,352
--------------------------------------------------------------------
Class R-4 87 271 471 1,049
--------------------------------------------------------------------
Class R-5 56 176 307 689
--------------------------------------------------------------------
Class R-6 51 160 280 628
--------------------------------------------------------------------
* Reflects the maximum initial sales charge.
5
EuroPacific Growth Fund / Prospectus
<PAGE>
Investment objective, strategies and risks
The fund's investment objective is to provide you with long-term growth of
capital. Normally, the fund will invest at least 80% of its assets in
securities of issuers located in Europe and the Pacific Basin. This policy is
subject to change only upon 60 days' notice to shareholders. Various factors
will be considered when determining whether a country is part of Europe,
including whether a country is part of the MSCI European indexes. A country will
be considered part of the Pacific Basin if any of its borders touch the Pacific
Ocean.
The prices of securities held by the fund may decline in response to certain
events, including those directly involving the companies whose securities are
owned by the fund; conditions affecting the general economy; overall market
changes; local, regional or global political, social or economic instability;
and currency, interest rate and commodity price fluctuations. The
growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss.
Investments in securities issued by entities based outside the United States may
also be affected by currency controls; different accounting, auditing, financial
reporting, and legal standards and practices in some countries; expropriation;
changes in tax policy; greater market volatility; differing securities market
structures; higher transaction costs; and various administrative difficulties,
such as delays in clearing and settling portfolio transactions or in receiving
payment of dividends. These risks may be heightened in connection with
investments in developing countries. Investments in securities issued by
entities domiciled in the United States may also be subject to many of these
risks.
The fund may also hold cash, money market instruments and fixed-income
securities. The percentage of the fund invested in such holdings varies and
depends on various factors, including market conditions and purchases and
redemptions of fund shares. A larger percentage of such holdings could moderate
the fund's investment results in a period of rising market prices.
A larger percentage of cash, money market instruments and fixed-income
securities could reduce the magnitude of the fund's loss in a period of falling
market prices and provide liquidity to make additional investments or to meet
redemptions.
The fund relies on the professional judgment of its investment adviser to make
decisions about the fund's portfolio investments. The basic investment
philosophy of the investment adviser is to seek to invest in attractively valued
companies that, in its opinion, represent above-average long-term investment
opportunities. The investment adviser believes that an important way to
accomplish this is through fundamental analysis, which may include meeting with
company executives and employees, suppliers, customers and competitors.
Securities may be sold when the investment adviser believes that they no longer
represent relatively attractive investment opportunities.
6
EuroPacific Growth Fund / Prospectus
<PAGE>
ADDITIONAL INVESTMENT RESULTS
Unlike the Investment Results table on page 3, the table below reflects the
fund's results calculated without a sales charge.
ADDITIONAL INVESTMENT RESULTS (WITHOUT A SALES CHARGE)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2008:
5 10
1 YEAR YEARS YEARS LIFETIME/1/
----------------------------------------------------------------------
CLASS A -- FIRST SOLD 4/16/84 -40.53% 4.56% 4.98% 11.32%
5
1 YEAR YEARS LIFETIME/1/
---------------------------------------------------------------
CLASS R-1 -- FIRST SOLD 6/17/02 -41.01% 3.69% 5.19%
CLASS R-2 -- FIRST SOLD 5/31/02 -41.04 3.69 4.49
CLASS R-3 -- FIRST SOLD 5/21/02 -40.71 4.21 4.79
CLASS R-4 -- FIRST SOLD 6/7/02 -40.56 4.51 5.63
CLASS R-5 -- FIRST SOLD 5/15/02 -40.38 4.81 5.46
1 YEAR 5 10 LIFETIME/2/
YEARS YEARS
-----------------------------------------------------------------------------
INDEXES
MSCI All Country World Index ex USA/3/ -45.24% 3.00% 2.27% N/A
Lipper International Funds Average/4/ -44.24 1.38 2.15 8.76%
MSCI EAFE Index/5/ -43.06 2.10 1.18 8.79
1 Lifetime results for each share class are measured from the date the share
class was first sold.
2 Lifetime results for the index(es) shown are measured from the date Class A
shares were first sold. The funds or securities that compose each index may
vary over time.
3 MSCI All Country World Index ex USA is a free float-adjusted market
capitalization-weighted index that is designed to measure equity market
performance in the global developed and emerging markets, excluding the United
States. The index consists of 46 developed and emerging market country indexes.
This index is unmanaged and its results include reinvested dividends and/or
distributions, but do not reflect the effect of sales charges, commissions,
expenses or taxes. This index was not in existence as of the date the fund
began investment operations; therefore, lifetime results are not available.
4 Lipper International Funds Average is composed of funds that invest assets in
securities with primary trading markets outside the United States. The results
of the underlying funds in the average include the reinvestment of dividends
and capital gain distributions, as well as brokerage commissions paid by the
funds for portfolio transactions, but do not reflect the effect of sales
charges or taxes.
5 MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted
market capitalization-weighted index that is designed to measure developed
equity market performance, excluding the United States and Canada. This index
is unmanaged and its results include reinvested dividends and/or distributions,
but do not reflect the effect of sales charges, commissions, expenses or taxes.
7
EuroPacific Growth Fund / Prospectus
<PAGE>
[begin pie chart]
INDUSTRY SECTOR DIVERSIFICATION AS OF SEPTEMBER 30, 2008 (percent of net assets)
Financials 15.03%
Health care 11.86
Telecommunication 10.42
services
Consumer 8.19
discretionary
Energy 8.11
Bonds & notes 0.06
Preferred stocks 0.04
Other industries 35.10
Short-term securities 11.19
& other assets
less liabilities
[end pie chart]
PERCENT INVESTED BY COUNTRY AS OF SEPTEMBER 30, 2008 PERCENT OF NET ASSETS
-------------------------------------------------------------------------------
Europe
Euro zone* 33.1%
------------------------------------------------------------------------------------
Switzerland 7.7
------------------------------------------------------------------------------------
United Kingdom 7.2
------------------------------------------------------------------------------------
Russia 2.7
------------------------------------------------------------------------------------
Denmark 1.7
------------------------------------------------------------------------------------
Sweden 1.7
------------------------------------------------------------------------------------
Norway 0.8
------------------------------------------------------------------------------------
Turkey 0.3
------------------------------------------------------------------------------------
Hungary 0.2
------------------------------------------------------------------------------------
Other Europe 0.2
------------------------------------------------------------------------------------
Pacific Basin
------------------------------------------------------------------------------------
Japan 7.5
------------------------------------------------------------------------------------
Mexico 3.2
------------------------------------------------------------------------------------
South Korea 2.8
------------------------------------------------------------------------------------
Canada 2.7
------------------------------------------------------------------------------------
Taiwan 2.6
------------------------------------------------------------------------------------
Australia 2.0
------------------------------------------------------------------------------------
China 1.8
------------------------------------------------------------------------------------
Hong Kong 1.3
------------------------------------------------------------------------------------
Singapore 1.0
------------------------------------------------------------------------------------
Phillipines 0.3
------------------------------------------------------------------------------------
Other Pacific Basin 0.7
------------------------------------------------------------------------------------
Other
Brazil 2.9
------------------------------------------------------------------------------------
India 2.0
------------------------------------------------------------------------------------
South Africa 1.4
------------------------------------------------------------------------------------
Israel 0.9
------------------------------------------------------------------------------------
Other countries 0.1
Short-term securities & other assets less liabilities 11.2
------------------------------------------------------------------------------------
Total 100.0%
* Countries using the euro as a common currency are: Austria, Belgium, Cyprus,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the
Netherlands, Portugal, Slovenia and Spain.
Because the fund is actively managed, its holdings will change over time.
For updated information on the fund's portfolio holdings, please visit us at
americanfunds.com.
8
EuroPacific Growth Fund / Prospectus
<PAGE>
Management and organization
INVESTMENT ADVISER
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and other
funds, including the American Funds. Capital Research and Management Company is
a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at
333 South Hope Street, Los Angeles, California 90071, and 6455 Irvine Center
Drive, Irvine, California 92618. Capital Research and Management Company manages
the investment portfolio and business affairs of the fund. The total management
fee paid by the fund, as a percentage of average net assets, for the previous
fiscal year appears in the Annual Fund Operating Expenses table under "Fees and
expenses of the fund." A discussion regarding the basis for the approval of the
fund's investment advisory and service agreement by the fund's board of trustees
is contained in the fund's annual report to shareholders for the fiscal year
ended March 31, 2008.
Capital Research and Management Company manages equity assets through two
investment divisions, Capital World Investors and Capital Research Global
Investors, and manages fixed-income assets through its Fixed Income division.
Capital World Investors and Capital Research Global Investors make investment
decisions on an independent basis.
Rather than remain as investment divisions, Capital World Investors and Capital
Research Global Investors may be incorporated into wholly owned subsidiaries of
Capital Research and Management Company. In that event, Capital Research and
Management Company would continue to be the investment adviser, and day-to-day
investment management of equity assets would continue to be carried out through
one or both of these subsidiaries. Capital Research and Management Company and
the funds it advises have applied to the Securities and Exchange Commission for
an exemptive order that would give Capital Research and Management Company the
authority to use, upon approval of the funds' boards, its management
subsidiaries and affiliates to provide day-to-day investment management services
to the funds, including making changes to the management subsidiaries and
affiliates providing such services. Approval by the funds' shareholders would be
required before any authority granted under an exemptive order could be
exercised. There is no assurance that Capital Research and Management Company
will incorporate its investment divisions or seek a shareholder vote to exercise
any authority, if granted, under an exemptive order.
EXECUTION OF PORTFOLIO TRANSACTIONS
The investment adviser places orders with broker-dealers for the fund's
portfolio transactions. In selecting broker-dealers, the investment adviser
strives to obtain "best execution" (the most favorable total price reasonably
attainable under the circumstances) for the fund's
9
EuroPacific Growth Fund / Prospectus
<PAGE>
portfolio transactions, taking into account a variety of factors. Subject to
best execution, the investment adviser may consider investment research and/or
brokerage services provided to the adviser in placing orders for the fund's
portfolio transactions. The investment adviser may place orders for the fund's
portfolio transactions with broker-dealers who have sold shares of funds managed
by the investment adviser or its affiliated companies; however, it does not give
consideration to whether a broker-dealer has sold shares of the funds managed by
the investment adviser or its affiliated companies when placing any such orders
for the fund's portfolio transactions. A more detailed description of the
investment adviser's policies is included in the fund's statement of additional
information.
PORTFOLIO HOLDINGS
Portfolio holdings information for the fund is available on the American Funds
website at americanfunds.com. To reach this information, access the fund's
detailed information page on the website. A list of the fund's top 10 equity
holdings, updated as of each month-end, is generally posted to this page within
14 days after the end of the applicable month. A link to the fund's complete
list of publicly disclosed portfolio holdings, updated as of each calendar
quarter-end, is generally posted to this page within 45 days after the end of
the applicable quarter. Both lists remain available on the website until new
information for the next month or quarter is posted. Portfolio holdings
information for the fund is also contained in reports filed with the Securities
and Exchange Commission.
A description of the fund's policies and procedures regarding disclosure of
information about its portfolio holdings is available in the statement of
additional information.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach, the portfolio of
a fund is divided into segments managed by individual counselors who decide how
their respective segments will be invested. In addition, Capital Research and
Management Company's investment analysts may make investment decisions with
respect to a portion of a fund's portfolio. Investment decisions are subject to
a fund's objective(s), policies and restrictions and the oversight of the
appropriate investment-related committees of Capital Research and Management
Company and its investment divisions.
10
EuroPacific Growth Fund / Prospectus
<PAGE>
The primary individual portfolio counselors for EuroPacific Growth Fund are:
PRIMARY TITLE WITH PORTFOLIO
PORTFOLIO INVESTMENT ADVISER COUNSELOR
PORTFOLIO COUNSELOR/ COUNSELOR (OR AFFILIATE) ROLE IN
FUND TITLE EXPERIENCE AND INVESTMENT MANAGEMENT
(IF APPLICABLE) IN THIS FUND EXPERIENCE OF THE FUND
-----------------------------------------------------------------------------------------------------
MARK E. DENNING 18 years Senior Vice President - Serves as an equity
President and Trustee (plus 3 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 27 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
STEPHEN E. BEPLER 25 years Senior Vice President - Serves as an equity
Executive Vice President (since the fund's Capital Research Global portfolio counselor
inception) Investors
Investment professional for
43 years in total;
36 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
CARL M. KAWAJA 8 years Senior Vice President - Serves as an equity
Senior Vice President (plus 8 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 21 years in total;
for the fund) 18 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
ROBERT W. LOVELACE 15 years Senior Vice President - Serves as an equity
Senior Vice President (plus 7 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 24 years, all with Capital
for the fund) Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
NICHOLAS J. GRACE 6 years Senior Vice President - Serves as an equity
Vice President (plus 8 years of Capital World Investors portfolio counselor
prior experience
as an Investment professional for
investment analyst 19 years in total;
for the fund) 15 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
ALWYN W. HEONG 13 years Senior Vice President - Serves as an equity
Vice President (plus 3 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 21 years in total;
17 years with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
SUNG LEE 7 years Senior Vice President - Serves as an equity
Vice President (plus 6 years of Capital Research Global portfolio counselor
prior experience Investors
as an
investment analyst Investment professional for
for the fund) 15 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
JONATHAN KNOWLES 3 years Senior Vice President - Serves as an equity
Capital World Investors portfolio counselor
Investment professional for
17 years, all with Capital
Research and Management
Company or affiliate
-----------------------------------------------------------------------------------------------------
11
EuroPacific Growth Fund / Prospectus
<PAGE>
Information regarding the portfolio counselors' compensation, their ownership of
securities in the fund and other accounts they manage can be found in the
statement of additional information.
CERTAIN PRIVILEGES AND/OR SERVICES DESCRIBED ON THE FOLLOWING PAGES OF THIS
PROSPECTUS AND IN THE STATEMENT OF ADDITIONAL INFORMATION MAY NOT BE AVAILABLE
TO YOU, DEPENDING ON YOUR INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER.
PLEASE SEE YOUR FINANCIAL ADVISER, INVESTMENT DEALER OR RETIREMENT PLAN
RECORDKEEPER FOR MORE INFORMATION.
12
EuroPacific Growth Fund / Prospectus
<PAGE>
Purchase, exchange and sale of shares
AMERICAN FUNDS SERVICE COMPANY, THE FUND'S TRANSFER AGENT, ON BEHALF OF THE FUND
AND AMERICAN FUNDS DISTRIBUTORS,/(R)/ THE FUND'S DISTRIBUTOR, IS REQUIRED BY
LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S)
ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU
DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR
ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY
OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED
POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE
OR REQUIRED BY LAW.
PURCHASES AND EXCHANGES
Eligible retirement plans generally may open an account and purchase Class A or
R shares by contacting any investment dealer (who may impose transaction charges
in addition to those described in this prospectus) authorized to sell the fund's
shares. Some or all R share classes may not be available through certain
investment dealers. Additional shares may be purchased through a plan's
administrator or recordkeeper.
Class A shares are generally not available for retirement plans using the
PlanPremier or Recordkeeper Direct recordkeeping programs.
Class R shares generally are available only to 401(k) plans, 457 plans, 403(b)
plans, profit-sharing and money purchase pension plans, defined benefit plans
and nonqualified deferred compensation plans. Class R shares also are generally
available only to retirement plans where plan level or omnibus accounts are held
on the books of the fund. In addition, Class R-6 shares are available for
investment by American Funds Target Date Retirement Series/(R)/ and Class R-5
shares are available to other registered investment companies approved by the
fund. Class R shares generally are not available to retail nonretirement
accounts, traditional and Roth individual retirement accounts (IRAs), Coverdell
Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and 529 college savings
plans.
Shares of the fund offered through this prospectus generally may be exchanged
into shares of the same class of other American Funds. Exchanges of Class A
shares from American Funds money market funds purchased without a sales charge
generally will be subject to the appropriate sales charge.
FREQUENT TRADING OF FUND SHARES
The fund and American Funds Distributors reserve the right to reject any
purchase order for any reason. The fund is not designed to serve as a vehicle
for frequent trading. Frequent trading of fund shares may lead to increased
costs to the fund and less efficient management of the fund's portfolio,
potentially resulting in dilution of the value of the shares held by long-term
shareholders. Accordingly, purchases, including those that are part of exchange
activity that the fund or American Funds Distributors has determined could
involve actual or potential harm to the fund, may be rejected.
13
EuroPacific Growth Fund / Prospectus
<PAGE>
The fund, through its transfer agent, American Funds Service Company, maintains
surveillance procedures that are designed to detect frequent trading in fund
shares. Under these procedures, various analytics are used to evaluate factors
that may be indicative of frequent trading. For example, transactions in fund
shares that exceed certain monetary thresholds may be scrutinized. American
Funds Service Company also may review transactions that occur close in time to
other transactions in the same account or in multiple accounts under common
ownership or influence. Trading activity that is identified through these
procedures or as a result of any other information available to the fund will be
evaluated to determine whether such activity might constitute frequent trading.
These procedures may be modified from time to time as appropriate to improve the
detection of frequent trading, to facilitate monitoring for frequent trading in
particular retirement plans or other accounts, and to comply with applicable
laws.
In addition to the fund's broad ability to restrict potentially harmful trading
as described above, the fund's board of trustees has adopted a "purchase
blocking policy" under which any shareholder redeeming shares having a value of
$5,000 or more from the fund will be precluded from investing in the fund for 30
calendar days after the redemption transaction. This policy also applies to
redemptions and purchases that are part of exchange transactions. Under the
fund's purchase blocking policy, certain purchases will not be prevented and
certain redemptions will not trigger a purchase block, such as systematic
redemptions and purchases, where the entity maintaining the shareholder account
is able to identify the transaction as a systematic redemption or purchase;
purchases and redemptions of shares having a value of less than $5,000;
transactions in Class 529 shares; purchases and redemptions resulting from
reallocations by American Funds Target Date Retirement Series; retirement plan
contributions, loans and distributions (including hardship withdrawals)
identified as such on the retirement plan recordkeeper's system; and purchase
transactions involving transfers of assets, rollovers, Roth IRA conversions and
IRA recharacterizations, where the entity maintaining the shareholder account is
able to identify the transaction as one of these types of transactions.
The fund reserves the right to waive the purchase blocking policy with respect
to specific shareholder accounts in those instances where American Funds Service
Company determines that its surveillance procedures are adequate to detect
frequent trading in fund shares.
American Funds Service Company will work with certain intermediaries (such as
investment dealers holding shareholder accounts in street name, retirement plan
recordkeepers, insurance company separate accounts and bank trust companies) to
apply their own procedures, provided that American Funds Service Company
believes the intermediary's procedures are reasonably designed to enforce the
frequent trading policies of the fund. You should refer to disclosures provided
by the intermediaries with which you have an account to determine the specific
trading restrictions that apply to you.
14
EuroPacific Growth Fund / Prospectus
<PAGE>
If American Funds Service Company identifies any activity that may constitute
frequent trading, it reserves the right to contact the intermediary and request
that the intermediary either provide information regarding an account owner's
transactions or restrict the account owner's trading. If American Funds Service
Company is not satisfied that the intermediary has taken appropriate action,
American Funds Service Company may terminate the intermediary's ability to
transact in fund shares.
There is no guarantee that all instances of frequent trading in fund shares will
be prevented.
NOTWITHSTANDING THE FUND'S SURVEILLANCE PROCEDURES AND PURCHASE BLOCKING POLICY,
ALL TRANSACTIONS IN FUND SHARES REMAIN SUBJECT TO THE FUND'S AND AMERICAN FUNDS
DISTRIBUTORS' RIGHT TO RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING
THE TYPES OF TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER
A BLOCK UNDER THE PURCHASE BLOCKING POLICY). SEE THE STATEMENT OF ADDITIONAL
INFORMATION FOR MORE INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY
ADDRESS OTHER POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS.
SALES
Please contact your plan administrator or recordkeeper in order to sell shares
from your retirement plan.
RIGHT OF REINVESTMENT
If you notify American Funds Service Company, you may reinvest proceeds from a
redemption, dividend payment or capital gain distribution without a sales charge
in the same fund or other American Funds, provided that the reinvestment occurs
within 90 days after the date of the redemption or distribution and is made into
the same account from which you redeemed the shares or received the
distribution. If the account has been closed, you may reinvest without a sales
charge if the new receiving account has the same registration as the closed
account. Proceeds will be reinvested in the same share class from which the
original redemption or distribution was made. Redemption proceeds of Class A
shares representing direct purchases in American Funds money market funds that
are reinvested in non-money market American Funds will be subject to a sales
charge. Proceeds will be reinvested at the next calculated net asset value after
your request is received and accepted by American Funds Service Company. For
purposes of this "right of reinvestment policy," automatic transactions
(including, for example, automatic purchases, withdrawals and payroll
deductions) and ongoing retirement plan contributions are not eligible for
investment without a sales charge. See the statement of additional information
for further information. You may not reinvest proceeds in the American Funds as
described in this paragraph if such proceeds are subject to a purchase block as
described under "Frequent trading of fund shares" in this prospectus. This
paragraph does not apply to certain rollover investments as described under
"Rollovers from retirement plans to IRAs" in this prospectus.
15
EuroPacific Growth Fund / Prospectus
<PAGE>
VALUING SHARES
The net asset value of each share class of the fund is the value of a single
share. The fund calculates the net asset value each day the New York Stock
Exchange is open for trading as of approximately 4 p.m. New York time, the
normal close of regular trading. Assets are valued primarily on the basis of
market quotations. However, the fund has adopted procedures for making "fair
value" determinations if market quotations are not readily available or are not
considered reliable. For example, if events occur between the close of markets
outside the United States and the close of regular trading on the New York Stock
Exchange that, in the opinion of the investment adviser, materially affect the
value of any of the fund's securities that principally trade in those
international markets, those securities will be valued in accordance with fair
value procedures. Use of these procedures is intended to result in more
appropriate net asset values. In addition, such use will reduce, if not
eliminate, potential arbitrage opportunities otherwise available to short-term
investors.
Because the fund may hold securities that are primarily listed on foreign
exchanges that trade on weekends or days when the fund does not price its
shares, the value of securities held in the fund may change on days when you
will not be able to purchase or redeem fund shares.
Your shares will be purchased at the net asset value (plus any applicable sales
charge in the case of Class A shares) or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request.
MOVING BETWEEN SHARE CLASSES AND ACCOUNTS
Please see the statement of additional information for details and limitations
on moving investments in certain share classes to different share classes and on
moving investments held in certain accounts to different accounts.
16
EuroPacific Growth Fund / Prospectus
<PAGE>
Sales charges
CLASS A SHARES
The initial sales charge you pay each time you buy Class A shares differs
depending upon the amount you invest and may be reduced or eliminated for larger
purchases as indicated below. The "offering price," the price you pay to buy
shares, includes any applicable sales charge, which will be deducted directly
from your investment. Shares acquired through reinvestment of dividends or
capital gain distributions are not subject to an initial sales charge.
SALES CHARGE AS A
PERCENTAGE OF:
DEALER
NET COMMISSION
OFFERING AMOUNT AS A PERCENTAGE
INVESTMENT PRICE INVESTED OF OFFERING PRICE
------------------------------------------------------------------------------
Less than $25,000 5.75% 6.10% 5.00%
------------------------------------------------------------------------------
$25,000 but less than $50,000 5.00 5.26 4.25
------------------------------------------------------------------------------
$50,000 but less than $100,000 4.50 4.71 3.75
------------------------------------------------------------------------------
$100,000 but less than $250,000 3.50 3.63 2.75
------------------------------------------------------------------------------
$250,000 but less than $500,000 2.50 2.56 2.00
------------------------------------------------------------------------------
$500,000 but less than $750,000 2.00 2.04 1.60
------------------------------------------------------------------------------
$750,000 but less than $1 million 1.50 1.52 1.20
------------------------------------------------------------------------------
$1 million or more and certain other none none see below
investments described below
------------------------------------------------------------------------------
The sales charge, expressed as a percentage of the offering price or the net
amount invested, may be higher or lower than the percentages described in the
table above due to rounding. This is because the dollar amount of the sales
charge is determined by subtracting the net asset value of the shares purchased
from the offering price, which is calculated to two decimal places using
standard rounding criteria. The impact of rounding will vary with the size of
the investment and the net asset value of the shares.
CLASS A PURCHASES NOT SUBJECT TO SALES CHARGES
The following investments are not subject to any initial or contingent deferred
sales charge if American Funds Service Company is properly notified of the
nature of the investment:
. investments made by accounts that are part of certain qualified fee-based
programs and that purchased Class A shares before the discontinuation of your
investment dealer's load-waived Class A share program with the American Funds;
and
. certain rollover investments from retirement plans to IRAs (see "Rollovers
from retirement plans to IRAs" in this prospectus for more information).
17
EuroPacific Growth Fund / Prospectus
<PAGE>
The distributor may pay dealers up to 1% on investments made in Class A shares
with no initial sales charge. The fund may reimburse the distributor for these
payments through its plans of distribution (see "Plans of distribution" in this
prospectus).
Certain other investors may qualify to purchase shares without a sales charge,
such as employees of investment dealers and registered investment advisers
authorized to sell American Funds, and employees of The Capital Group Companies.
Please see the statement of additional information for more information.
EMPLOYER-SPONSORED RETIREMENT PLANS
Employer-sponsored retirement plans that are eligible to purchase Class R
shares may instead purchase Class A shares and pay the applicable Class A sales
charge, provided their recordkeepers can properly apply a sales charge on plan
investments. These plans are not eligible to make initial purchases of $1
million or more in Class A shares and thereby invest in Class A shares without
a sales charge, nor are they eligible to establish a statement of intention
that qualifies them to purchase Class A shares without a sales charge. More
information about statements of intention can be found under "Sales charge
reductions" in this prospectus. Plans investing in Class A shares with a sales
charge may purchase additional Class A shares in accordance with the sales
charge table in this prospectus.
Employer-sponsored retirement plans that invested in Class A shares without any
sales charge on or before March 31, 2004, and that continue to meet the
eligibility requirements in effect as of that date for purchasing Class A
shares at net asset value, may continue to purchase Class A shares without any
initial or contingent deferred sales charge.
A 403(b) plan may not invest in Class A, B or C shares on or after January 1,
2009, unless such plan was invested in Class A, B or C shares prior to that
date.
CLASS R SHARES
Class R shares are sold without any initial or contingent deferred sales charge.
The distributor will pay dealers annually an asset-based compensation of up to
1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .50%
for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation
is paid from fund assets on sales of Class R-5 or R-6 shares. The fund may
reimburse the distributor for these payments through its plans of distribution
(see "Plans of distribution" in this prospectus).
18
EuroPacific Growth Fund / Prospectus
<PAGE>
Sales charge reductions
TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR
FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU
PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR
ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A
REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE
OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales
charge discount, it may be necessary for you to provide your adviser or American
Funds Service Company with information and records (including account
statements) of all relevant accounts invested in the American Funds.
IN ADDITION TO THE INFORMATION IN THIS PROSPECTUS, YOU MAY OBTAIN MORE
INFORMATION ABOUT SHARE CLASSES, SALES CHARGES AND SALES CHARGE REDUCTIONS
THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS WEBSITE AT
AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR FROM YOUR
FINANCIAL ADVISER.
REDUCING YOUR CLASS A INITIAL SALES CHARGE
Consistent with the policies described in this prospectus, two or more
retirement plans of an employer or employer's affiliates may combine all of
their American Funds investments to reduce their Class A sales charge. Certain
investments in the American Funds Target Date Retirement Series may also be
combined for this purpose. Please see the American Funds Target Date Retirement
Series prospectus for further information. However, for this purpose,
investments representing direct purchases of American Funds money market funds
are excluded. Following are different ways that you may qualify for a reduced
Class A sales charge:
CONCURRENT PURCHASES
Simultaneous purchases of any class of shares of two or more American Funds
(excluding American Funds money market funds) may be combined to qualify for a
reduced Class A sales charge.
RIGHTS OF ACCUMULATION
You may take into account your accumulated holdings in all share classes of the
American Funds (excluding American Funds money market funds) to determine the
initial sales charge you pay on each purchase of Class A shares. Subject to
your investment dealer's or recordkeeper's capabilities, your accumulated
holdings will be calculated as the higher of (a) the current value of your
existing holdings or (b) the amount you invested (including reinvested
dividends and capital gains, but excluding capital appreciation) less any
withdrawals. Please see the statement of additional information for further
details. You should retain any records necessary to substantiate the historical
amounts you have invested.
19
EuroPacific Growth Fund / Prospectus
<PAGE>
STATEMENT OF INTENTION
You may reduce your Class A sales charge by establishing a statement of
intention. A statement of intention allows you to combine all purchases of all
share classes of the American Funds (excluding American Funds money market
funds) you intend to make over a 13-month period to determine the applicable
sales charge; however, purchases made under a right of reinvestment,
appreciation of your holdings, and reinvested dividends and capital gains do
not count as purchases made during the statement period. The market value of
your existing holdings eligible to be aggregated as of the day immediately
before the start of the statement period may be credited toward satisfying the
statement. A portion of your account may be held in escrow to cover additional
Class A sales charges that may be due if your total purchases over the
statement period do not qualify you for the applicable sales charge reduction.
Employer-sponsored retirement plans may be restricted from establishing
statements of intention. See "Sales charges" in this prospectus for more
information.
RIGHT OF REINVESTMENT
Please see the "Sales" section of "Purchase, exchange and sale of shares" in
this prospectus for information on how to reinvest proceeds from a redemption,
dividend payment or capital gain distribution without a sales charge.
20
EuroPacific Growth Fund / Prospectus
<PAGE>
Rollovers from retirement plans to IRAs
Assets from retirement plans may be invested in Class A, B, C or F shares
through an IRA rollover, subject to the other provisions of this prospectus and
the prospectus for nonretirement plan shareholders. More information on Class B,
C and F shares can be found in the fund's prospectus for nonretirement plan
shareholders. Rollovers invested in Class A shares from retirement plans will be
subject to applicable sales charges. The following rollovers to Class A shares
will be made without a sales charge:
. rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as
custodian; and
. rollovers to IRAs that are attributable to American Funds investments, if they
meet the following requirements:
-- the assets being rolled over were invested in American Funds at the time of
distribution; and
-- the rolled over assets are contributed to an American Funds IRA with Capital
Bank and Trust Company as custodian.
IRA rollover assets that roll over without a sales charge as described above
will not be subject to a contingent deferred sales charge and investment dealers
will be compensated solely with an annual service fee that begins to accrue
immediately. IRA rollover assets invested in Class A shares that are not
attributable to American Funds investments, as well as future contributions to
the IRA, will be subject to sales charges and the terms and conditions generally
applicable to Class A share investments as described in this prospectus and the
statement of additional information.
Plans of distribution
The fund has plans of distribution or "12b-1 plans" for certain share classes,
under which it may finance activities primarily intended to sell shares,
provided the categories of expenses are approved in advance by the fund's board
of trustees. The plans provide for payments, based on annualized percentages of
average daily net assets, of up to .25% for Class A shares, up to 1.00% for
Class R-1 and R-2 shares, up to .75% for Class R-3 shares and up to .50% for
Class R-4 shares. For all share classes indicated above, up to .25% of these
expenses may be used to pay service fees to qualified dealers for providing
certain shareholder services. The amount remaining for each share class may be
used for distribution expenses.
The 12b-1 fees paid by the fund, as a percentage of average net assets for the
previous fiscal year, are indicated in the Annual Fund Operating Expenses table
under "Fees and expenses of the fund" in this prospectus. Since these fees are
paid out of the fund's assets or income on an ongoing basis, over time they will
increase the cost and reduce the return of your investment.
21
EuroPacific Growth Fund / Prospectus
<PAGE>
Other compensation to dealers
American Funds Distributors, at its expense, currently provides additional
compensation to investment dealers. These payments may be made, at the
discretion of American Funds Distributors, to the top 100 dealers (or their
affiliates) that have sold shares of the American Funds. The level of payments
made to a qualifying firm in any given year will vary and in no case would
exceed the sum of (a) .10% of the previous year's American Funds sales by that
dealer and (b) .02% of American Funds assets attributable to that dealer. For
calendar year 2008, aggregate payments made by American Funds Distributors to
dealers were less than .02% of the average assets of the American Funds.
Aggregate payments may also change from year to year. A number of factors will
be considered in determining payments, including the qualifying dealer's sales,
assets and redemption rates, and the quality of the dealer's relationship with
American Funds Distributors. American Funds Distributors makes these payments to
help defray the costs incurred by qualifying dealers in connection with efforts
to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder
needs. American Funds Distributors will, on an annual basis, determine the
advisability of continuing these payments. American Funds Distributors may also
pay expenses associated with meetings conducted by dealers outside the top 100
firms to facilitate educating financial advisers and shareholders about the
American Funds. If investment advisers, distributors or other affiliates of
mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for
recommending a particular mutual fund over other mutual funds. You should
consult with your financial adviser and review carefully any disclosure by your
financial adviser's firm as to compensation received.
22
EuroPacific Growth Fund / Prospectus
<PAGE>
Distributions and taxes
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to shareholders, usually in December.
Capital gains, if any, are usually distributed in December. When a dividend or
capital gain is distributed, the net asset value per share is reduced by the
amount of the payment.
All dividends and capital gain distributions paid to retirement plan
shareholders will be automatically reinvested.
TAXES ON DIVIDENDS AND DISTRIBUTIONS
Dividends and capital gains distributed by the fund to tax-deferred retirement
plan accounts are not taxable currently.
TAXES ON TRANSACTIONS
Exchanges within a tax-deferred retirement plan account will not result in a
capital gain or loss for federal or state income tax purposes. With limited
exceptions, distributions from a retirement plan account are taxable as ordinary
income.
PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION.
23
EuroPacific Growth Fund / Prospectus
<PAGE>
Financial highlights/1/
The Financial Highlights table is intended to help you understand the fund's
results for the past five fiscal years. Certain information reflects financial
results for a single share of a particular class. A similar table will be shown
for Class R-6 shares beginning with the fund's fiscal year ending after the date
the share class is first offered. The total returns in the table represent the
rate that an investor would have earned or lost on an investment in the fund
(assuming reinvestment of all dividends and capital gain distributions). Where
indicated, figures in the table reflect the impact, if any, of certain
reimbursements/waivers from Capital Research and Management Company. For more
information about these reimbursements/waivers, see the footnotes to the Annual
Fund Operating Expenses table under "Fees and expenses of the fund" in this
prospectus and the fund's annual report. The information in the Financial
Highlights table has been audited by Deloitte & Touche LLP (except for the six
months ended September 30, 2008), whose report, along with the fund's financial
statements, is included in the statement of additional information, which is
available upon request. The information for the six-month period presented has
been derived from the fund's unaudited financial statements and includes all
adjustments that management considers necessary for a fair presentation of such
information for the period presented.
INCOME FROM INVESTMENT OPERATIONS/2/
Net
(losses)
gains
on securities
Net asset (both
value, Net realized Total from
beginning investment and investment
of period income unrealized) operations
---------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $46.83 $.70% $(10.05) $(9.35)
Year ended 3/31/2008 47.92 .95 2.60 3.55
Year ended 3/31/2007 44.20 .71 6.49 7.20
Year ended 3/31/2006 35.63 .62 9.99 10.61
Year ended 3/31/2005 32.26 .43 3.45 3.88
Year ended 3/31/2004 20.78 .29 11.50 11.79
---------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ 45.45 .49 (9.70) (9.21)
Year ended 3/31/2008 46.71 .49 2.54 3.03
Year ended 3/31/2007 43.29 .28 6.38 6.66
Year ended 3/31/2006 35.04 .26 9.82 10.08
Year ended 3/31/2005 31.89 .11 3.43 3.54
Year ended 3/31/2004 20.67 .04 11.41 11.45
---------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $45.62 $.50 $ (9.75) $(9.25)
Year ended 3/31/2008 46.84 .50 2.54 3.04
Year ended 3/31/2007 43.36 .30 6.35 6.65
Year ended 3/31/2006 35.07 .26 9.83 10.09
Year ended 3/31/2005 31.86 .14 3.41 3.55
Year ended 3/31/2004 20.64 .05 11.40 11.45
---------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ 46.04 .63 (9.87) (9.24)
Year ended 3/31/2008 47.20 .78 2.54 3.32
Year ended 3/31/2007 43.64 .52 6.41 6.93
Year ended 3/31/2006 35.23 .46 9.89 10.35
Year ended 3/31/2005 31.96 .30 3.42 3.72
Year ended 3/31/2004 20.68 .15 11.45 11.60
---------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ 46.17 .67 (9.89) (9.22)
Year ended 3/31/2008 47.31 .88 2.60 3.48
Year ended 3/31/2007 43.69 .64 6.45 7.09
Year ended 3/31/2006 35.25 .57 9.91 10.48
Year ended 3/31/2005 31.95 .39 3.44 3.83
Year ended 3/31/2004 20.63 .27 11.41 11.68
---------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ 46.86 .75 (10.05) (9.30)
Year ended 3/31/2008 47.94 1.05 2.63 3.68
Year ended 3/31/2007 44.22 .78 6.53 7.31
Year ended 3/31/2006 35.64 .69 10.02 10.71
Year ended 3/31/2005 32.26 .50 3.47 3.97
Year ended 3/31/2004 20.78 .35 11.51 11.86
DIVIDENDS AND DISTRIBUTIONS
Dividends Total Net asset
(from net Distributions dividends value,
investment (from and end of Total
income) capital gains) distributions period return/3,4/
----------------------------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $-- $ -- $ -- $37.48 (19.97)%
Year ended 3/31/2008 (1.01) (3.63) (4.64) 46.83 6.40
Year ended 3/31/2007 (.77) (2.71) (3.48) 47.92 16.63
Year ended 3/31/2006 (.72) (1.32) (2.04) 44.20 30.25
Year ended 3/31/2005 (.51) -- (.51) 35.63 12.08
Year ended 3/31/2004 (.31) -- (.31) 32.26 57.11
----------------------------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ -- -- -- 36.24 (20.26)
Year ended 3/31/2008 (.66) (3.63) (4.29) 45.45 5.52
Year ended 3/31/2007 (.53) (2.71) (3.24) 46.71 15.68
Year ended 3/31/2006 (.51) (1.32) (1.83) 43.29 29.16
Year ended 3/31/2005 (.39) -- (.39) 35.04 11.18
Year ended 3/31/2004 (.23) -- (.23) 31.89 55.72
----------------------------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $-- $ -- $ -- $36.37 (20.28)%
Year ended 3/31/2008 (.63) (3.63) (4.26) 45.62 5.51
Year ended 3/31/2007 (.46) (2.71) (3.17) 46.84 15.66
Year ended 3/31/2006 (.48) (1.32) (1.80) 43.36 29.20
Year ended 3/31/2005 (.34) -- (.34) 35.07 11.17
Year ended 3/31/2004 (.23) -- (.23) 31.86 55.78
----------------------------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ -- -- -- 36.80 (20.07)
Year ended 3/31/2008 (.85) (3.63) (4.48) 46.04 6.05
Year ended 3/31/2007 (.66) (2.71) (3.37) 47.20 16.20
Year ended 3/31/2006 (.62) (1.32) (1.94) 43.64 29.85
Year ended 3/31/2005 (.45) -- (.45) 35.23 11.68
Year ended 3/31/2004 (.32) -- (.32) 31.96 56.46
----------------------------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ -- -- -- 35.95 (19.97)
Year ended 3/31/2008 (.99) (3.63) (4.62) 46.17 6.32
Year ended 3/31/2007 (.76) (2.71) (3.47) 47.31 16.61
Year ended 3/31/2006 (.72) (1.32) (2.04) 43.69 30.20
Year ended 3/31/2005 (.53) -- (.53) 35.25 12.04
Year ended 3/31/2004 (.36) -- (.36) 31.95 57.00
----------------------------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ -- -- -- 37.56 (19.85)
Year ended 3/31/2008 (1.13) (3.63) (4.76) 46.86 6.64
Year ended 3/31/2007 (.88) (2.71) (3.59) 47.94 16.91
Year ended 3/31/2006 (.81) (1.32) (2.13) 44.22 30.56
Year ended 3/31/2005 (.59) -- (.59) 35.64 12.38
Year ended 3/31/2004 (.38) -- (.38) 32.26 57.49
Ratio of Ratio of
expenses expenses
to average to average
net assets net assets Ratio of
Net assets, before after net
end of reim- reim- income to
period bursements/ bursements/ average
(in millions) waivers waivers/4/ net assets/4/
---------------------------------------------------------------------------------------
CLASS A:
Six months ended 9/30/2008/5/ $43,624 .80 %/6/ .76 %/6/ 3.08 %/6/
Year ended 3/31/2008 57,445 .79 .74 1.87
Year ended 3/31/2007 57,407 .79 .75 1.54
Year ended 3/31/2006 50,209 .81 .76 1.58
Year ended 3/31/2005 37,515 .83 .82 1.31
Year ended 3/31/2004 32,759 .87 .87 1.08
---------------------------------------------------------------------------------------
CLASS R-1:
Six months ended 9/30/2008/5/ 181 1.59/6/ 1.54/6/ 2.25/6/
Year ended 3/31/2008 190 1.61 1.57 .99
Year ended 3/31/2007 136 1.62 1.58 .61
Year ended 3/31/2006 66 1.65 1.61 .66
Year ended 3/31/2005 29 1.72 1.68 .34
Year ended 3/31/2004 8 1.82 1.71 .15
---------------------------------------------------------------------------------------
CLASS R-2:
Six months ended 9/30/2008/5/ $ 1,059 1.62 %/6/ 1.58 %/6/ 2.24 %/6/
Year ended 3/31/2008 1,296 1.61 1.57 1.01
Year ended 3/31/2007 1,093 1.67 1.59 .66
Year ended 3/31/2006 735 1.76 1.60 .68
Year ended 3/31/2005 375 1.90 1.64 .42
Year ended 3/31/2004 174 2.08 1.67 .17
---------------------------------------------------------------------------------------
CLASS R-3:
Six months ended 9/30/2008/5/ 5,520 1.08/6/ 1.04/6/ 2.82/6/
Year ended 3/31/2008 7,639 1.11 1.07 1.55
Year ended 3/31/2007 6,918 1.15 1.10 1.14
Year ended 3/31/2006 4,336 1.15 1.11 1.18
Year ended 3/31/2005 2,321 1.18 1.16 .89
Year ended 3/31/2004 1,052 1.29 1.29 .51
---------------------------------------------------------------------------------------
CLASS R-4:
Six months ended 9/30/2008/5/ 9,491 .85/6/ .80/6/ 2.99/6/
Year ended 3/31/2008 10,970 .85 .81 1.75
Year ended 3/31/2007 8,627 .87 .82 1.41
Year ended 3/31/2006 5,352 .87 .83 1.45
Year ended 3/31/2005 2,668 .90 .88 1.17
Year ended 3/31/2004 1,106 .92 .92 .92
---------------------------------------------------------------------------------------
CLASS R-5:
Six months ended 9/30/2008/5/ 17,437 .53/6/ .48/6/ 3.30/6/
Year ended 3/31/2008 19,731 .55 .50 2.05
Year ended 3/31/2007 14,993 .57 .52 1.70
Year ended 3/31/2006 9,059 .58 .53 1.74
Year ended 3/31/2005 4,507 .59 .58 1.51
Year ended 3/31/2004 2,473 .61 .61 1.27
24
EuroPacific Growth Fund / Prospectus
<PAGE>
[This page is intentionally left blank for this filing.]
25
EuroPacific Growth Fund / Prospectus
<PAGE>
SIX MONTHS YEAR ENDED MARCH 31
ENDED
SEPTEMBER 30, 2008/5/ 2008 2007 2006 2005 2004
---------------------------------------------------------------------------------------
PORTFOLIO TURNOVER
RATE FOR ALL CLASSES 17% 38% 27% 35% 30% 25%
OF SHARES
1 Based on operations for the periods shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
2 Based on average shares outstanding.
3 Total returns exclude any applicable sales charges.
4 This column reflects the impact, if any, of certain reimbursements/waivers
from Capital Research and Management Company. During some of the periods shown,
Capital Research and Management Company reduced fees for investment advisory
services. In addition, during some of the periods shown, Capital Research and
Management Company paid a portion of the fund's transfer agent fees for certain
retirement plan share classes.
5 Unaudited.
6 Annualized.
26
EuroPacific Growth Fund / Prospectus
<PAGE>
NOTES
27
EuroPacific Growth Fund / Prospectus
<PAGE>
[logo - American Funds /(R)/] The right choice for the long term/(R)/
FOR SHAREHOLDER American Funds Service Company
SERVICES 800/421-0180
FOR RETIREMENT PLAN Call your employer or plan
SERVICES administrator
FOR ADVISER American Funds Distributors
MARKETING 800/421-9900
americanfunds.com
FOR 24 For Class R share information,
-HOUR INFORMATION visit
AmericanFundsRetirement.com
Telephone calls you have with the American Funds
organization may be monitored or recorded for quality
assurance, verification and/or recordkeeping purposes.
By speaking with us on the telephone, you are giving
your consent to such monitoring and recording.
-----------------------------------------------------------------------------------
MULTIPLE TRANSLATIONS This prospectus may be translated into other languages.
If there is any inconsistency or ambiguity in the meaning of any translated word
or phrase, the English text will prevail.
ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain
additional information about the fund, including financial statements,
investment results, portfolio holdings, a discussion of market conditions and
the fund's investment strategies and the independent registered public
accounting firm's report (in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI,
as amended from time to time, contains more detailed information about the fund,
including the fund's financial statements, and is incorporated by reference into
this prospectus. This means that the current SAI, for legal purposes, is part of
this prospectus. The codes of ethics describe the personal investing policies
adopted by the fund, the fund's investment adviser and its affiliated companies.
The codes of ethics and current SAI are on file with the Securities and Exchange
Commission (SEC). These and other related materials about the fund are available
for review or to be copied at the SEC's Public Reference Room in Washington, DC
(202/551-8090) or on the EDGAR database on the SEC's website at sec.gov or,
after payment of a duplicating fee, via e-mail request to publicinfo@sec.gov or
by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington,
DC 20549-1520. The codes of ethics, current SAI and shareholder reports are also
available, free of charge, on americanfunds.com.
E-DELIVERY AND HOUSEHOLD MAILINGS Each year you are automatically sent an
updated prospectus and annual and semi-annual reports for the fund. You may also
occasionally receive proxy statements for the fund. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents will
be sent to shareholders who are part of the same family and share the same
household address. You may elect to receive these documents electronically in
lieu of paper form by enrolling in e-delivery on our website, americanfunds.com.
If you would like to opt out of household-based mailings or receive a
complimentary copy of the current SAI, codes of ethics or annual/semi-annual
report to shareholders, please call American Funds Service Company at
800/421-0180 or write to the secretary of the fund at 333 South Hope Street, Los
Angeles, California 90071
SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) Shareholders may obtain
information about SIPC/(R)/ on its website at sipc.org or by calling
202/371-8300.
Investment Company File No. 811-03734
RPGEPR-916-0509P Litho in USA CGD/RRD/8031
-------------------------------------------------------------------------------
THE CAPITAL GROUP COMPANIES
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
<PAGE>
EUROPACIFIC GROWTH FUND
Part B
Statement of Additional Information
May 1, 2009
This document is not a prospectus but should be read in conjunction with the
current prospectus of EuroPacific Growth Fund (the "fund" or "EUPAC") dated July
30, 2008 or retirement plan prospectus of the fund dated May 1, 2009. You may
obtain a prospectus from your financial adviser or by writing to the fund at the
following address:
EuroPacific Growth Fund
Attention: Secretary
333 South Hope Street
Los Angeles, California 90071
213/486-9200
Certain privileges and/or services described below may not be available to all
shareholders (including shareholders who purchase shares at net asset value
through eligible retirement plans) depending on the shareholder's investment
dealer or retirement plan recordkeeper. Please see your financial adviser,
investment dealer, plan recordkeeper or employer for more information.
TABLE OF CONTENTS
Item Page no.
---- --------
Certain investment limitations and guidelines . . . . . . . . . . . 2
Description of certain securities and investment techniques . . . . 2
Fundamental policies and investment restrictions. . . . . . . . . . 8
Management of the fund . . . . . . . . . . . . . . . . . . . . . . 11
Execution of portfolio transactions . . . . . . . . . . . . . . . . 32
Disclosure of portfolio holdings. . . . . . . . . . . . . . . . . . 34
Price of shares . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Taxes and distributions . . . . . . . . . . . . . . . . . . . . . . 38
Purchase and exchange of shares . . . . . . . . . . . . . . . . . . 43
Sales charges . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Sales charge reductions and waivers . . . . . . . . . . . . . . . . 50
Selling shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Shareholder account services and privileges . . . . . . . . . . . . 55
General information . . . . . . . . . . . . . . . . . . . . . . . . 58
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Financial statements
EuroPacific Growth Fund -- Page 1
<PAGE>
CERTAIN INVESTMENT LIMITATIONS AND GUIDELINES
The following limitations and guidelines are considered at the time of purchase,
under normal circumstances, and are based on a percentage of the fund's net
assets unless otherwise noted. This summary is not intended to reflect all of
the fund's investment limitations.
INVESTMENT OBJECTIVE
. Generally, the fund will invest at least 80% of its assets in securities of
issuers domiciled in Europe and the Pacific Basin. This policy is subject
to change only upon 60 days' notice to shareholders. Various factors will
be considered when determining whether a country is part of Europe,
including whether a country is part of the MSCI European indices. A country
will be considered part of the Pacific Basin if any of its borders touch
the Pacific Ocean.
. Although the United States is considered part of the Pacific Basin, the
fund will normally not purchase equity securities of issuers domiciled in
the United States. The fund will, however, hold cash and purchase cash
equivalents issued by U.S. issuers and treat them as Pacific Basin assets.
. The fund invests primarily in the stocks of companies located outside the
United States. The fund may invest a portion of its assets in companies
located in developing countries.
DEBT SECURITIES
. The fund may invest up to 5% of its assets in straight debt securities
(i.e., not convertible into equity) rated Baa1 or below by Moody's
Investors Service ("Moody's") and BBB+ or below by Standard & Poor's
Corporation ("S&P") or in unrated securities that are determined to be of
equivalent quality by Capital Research and Management Company (the
"investment adviser").
* * * * * *
The fund may experience difficulty liquidating certain portfolio securities
during significant market declines or periods of heavy redemptions.
DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES
The descriptions below are intended to supplement the material in the prospectus
under "Investment objective, strategies and risks."
EQUITY SECURITIES -- Equity securities represent an ownership position in a
company. Equity securities held by the fund typically consist of common stocks.
The prices of equity securities fluctuate based on, among other things, events
specific to their issuers and market, economic and other conditions. For
example, prices of these securities can be affected by financial contracts held
by the issuer or third parties (such as derivatives) relating to the security or
other assets or indices.
There may be little trading in the secondary market for particular equity
securities, which may adversely affect the fund's ability to value accurately or
dispose of such equity securities.
EuroPacific Growth Fund -- Page 2
<PAGE>
Adverse publicity and investor perceptions, whether or not based on fundamental
analysis, may decrease the value and/or liquidity of equity securities.
INVESTING IN VARIOUS COUNTRIES -- Investing outside the United States may
involve risks caused by, among other things, currency controls and fluctuating
currency values; different accounting, auditing, financial reporting and legal
standards and practices in some countries; changing local, regional and global
economic, political and social conditions; expropriation; changes in tax policy;
greater market volatility; differing securities market structures; higher
transaction costs; and various administrative difficulties, such as delays in
clearing and settling portfolio transactions or in receiving payment of
dividends.
The risks described above may be heightened in connection with investments in
developing countries. Although there is no universally accepted definition, the
investment adviser generally considers a developing country as a country that is
in the earlier stages of its industrialization cycle with a low per capita gross
domestic product ("GDP") and a low market capitalization to GDP ratio relative
to those in the United States and the European Union. Historically, the markets
of developing countries have been more volatile than the markets of developed
countries, reflecting the greater uncertainties of investing in less established
markets and economies. In particular, developing countries may have less stable
governments, may present the risks of nationalization of businesses, may have
restrictions on foreign ownership and prohibitions on the repatriation of assets
and may have less protection of property rights than more developed countries.
The economies of developing countries may be reliant on only a few industries,
may be highly vulnerable to changes in local or global trade conditions and may
suffer from high and volatile debt burdens or inflation rates. Local securities
markets may trade a small number of securities and may be unable to respond
effectively to increases in trading volume, potentially making prompt
liquidation of holdings difficult or impossible at times.
Additional costs could be incurred in connection with the fund's investment
activities outside the United States. Brokerage commissions may be higher
outside the United States, and the fund will bear certain expenses in connection
with its currency transactions. Furthermore, increased custodian costs may be
associated with maintaining assets in certain jurisdictions.
CURRENCY TRANSACTIONS -- The fund may purchase and sell currencies to facilitate
securities transactions and enter into forward currency contracts to protect
against changes in currency exchange rates. A forward currency contract is an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. Forward currency contracts
entered into by the fund will involve the purchase or sale of one currency
against the U.S. dollar. While entering into forward currency transactions could
minimize the risk of loss due to a decline in the value of the hedged currency,
it could also limit any potential gain that may result from an increase in the
value of the currency. The fund will not generally attempt to protect against
all potential changes in exchange rates. The fund will segregate liquid assets
that will be marked to market daily to meet its forward contract commitments to
the extent required by the Securities and Exchange Commission.
Certain provisions of the Internal Revenue Code may affect the extent to which
the fund may enter into forward contracts. Such transactions also may affect the
character and timing of income, gain or loss recognized by the fund for U.S.
federal income tax purposes.
EuroPacific Growth Fund -- Page 3
<PAGE>
INVESTING IN SMALLER CAPITALIZATION STOCKS -- The fund may invest in the stocks
of smaller capitalization companies (typically companies with market
capitalizations of less than $3.5 billion at the time of purchase). The
investment adviser believes that the issuers of smaller capitalization stocks
often provide attractive investment opportunities. However, investing in smaller
capitalization stocks can involve greater risk than is customarily associated
with investing in stocks of larger, more established companies. For example,
smaller companies often have limited product lines, limited operating histories,
limited markets or financial resources, may be dependent on one or a few key
persons for management and can be more susceptible to losses. Also, their
securities may be thinly traded (and therefore have to be sold at a discount
from current prices or sold in small lots over an extended period of time), may
be followed by fewer investment research analysts and may be subject to wider
price swings, thus creating a greater chance of loss than securities of larger
capitalization companies.
DEBT SECURITIES -- Debt securities are used by issuers to borrow money.
Generally, issuers pay investors periodic interest and repay the amount borrowed
either periodically during the life of the security and/or at maturity. Some
debt securities, such as zero coupon bonds, do not pay current interest, but are
purchased at a discount from their face values and their values accrete over
time to face value at maturity. The market prices of debt securities fluctuate
depending on such factors as interest rates, credit quality and maturity. In
general, market prices of debt securities decline when interest rates rise and
increase when interest rates fall.
Lower rated debt securities, rated Ba1 or below by Moody's and/or BB+ or below
by S&P or unrated but determined by the fund's investment adviser to be of
equivalent quality, are described by the rating agencies as speculative and
involve greater risk of default or price changes due to changes in the issuer's
creditworthiness than higher rated debt securities, or they may already be in
default. The market prices of these securities may fluctuate more than higher
quality securities and may decline significantly in periods of general economic
difficulty. It may be more difficult to dispose of, and to determine the value
of, lower rated debt securities.
Certain additional risk factors relating to debt securities are discussed below:
SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES -- Debt securities may be
sensitive to economic changes, political and corporate developments, and
interest rate changes. In addition, during an economic downturn or
substantial period of rising interest rates, issuers that are highly
leveraged may experience increased financial stress that could adversely
affect their ability to meet projected business goals, to obtain additional
financing and to service their principal and interest payment obligations.
Periods of economic change and uncertainty also can be expected to result
in increased volatility of market prices and yields of certain debt
securities. For example, prices of these securities can be affected by
financial contracts held by the issuer or third parties (such as
derivatives) relating to the security or other assets or indices.
PAYMENT EXPECTATIONS -- Debt securities may contain redemption or call
provisions. If an issuer exercises these provisions in a lower interest
rate market, the fund would have to replace the security with a lower
yielding security, resulting in decreased income to investors. If the
issuer of a debt security defaults on its obligations to pay interest or
principal or is the subject of bankruptcy proceedings, the fund may incur
losses or expenses in seeking recovery of amounts owed to it.
EuroPacific Growth Fund -- Page 4
<PAGE>
LIQUIDITY AND VALUATION -- There may be little trading in the secondary
market for particular debt securities, which may affect adversely the
fund's ability to value accurately or dispose of such debt securities.
Adverse publicity and investor perceptions, whether or not based on
fundamental analysis, may decrease the value and/or liquidity of debt
securities.
The investment adviser attempts to reduce the risks described above through
diversification of the fund's portfolio and by credit analysis of each issuer,
as well as by monitoring broad economic trends and corporate and legislative
developments, but there can be no assurance that it will be successful in doing
so.
Credit ratings for debt securities provided by rating agencies reflect an
evaluation of the safety of principal and interest payments, not market value
risk. The rating of an issuer is a rating agency's view of past and future
potential developments related to the issuer and may not necessarily reflect
actual outcomes. There can be a lag between the time of developments relating to
an issuer and the time a rating is assigned and updated.
Bond rating agencies may assign modifiers (such as +/-) to ratings categories to
signify the relative position of a credit within the rating category. Investment
policies that are based on ratings categories should be read to include any
security within that category, without giving consideration to the modifier
except where otherwise provided. See the Appendix for more information about
credit ratings.
SECURITIES WITH EQUITY AND DEBT CHARACTERISTICS -- The fund may invest in
securities that have a combination of equity and debt characteristics. These
securities may at times behave more like equity than debt or vice versa. Some
types of convertible bonds, preferred stocks or other preferred securities
automatically convert into common stocks or other securities at a stated
conversion ratio and some may be subject to redemption at the option of the
issuer at a predetermined price. These securities, prior to conversion, may pay
a fixed rate of interest or a dividend. Because convertible securities have both
debt and equity characteristics, their values vary in response to many factors,
including the values of the securities into which they are convertible, general
market and economic conditions, and convertible market valuations, as well as
changes in interest rates, credit spreads and the credit quality of the issuer.
The prices and yields of nonconvertible preferred securities or preferred stocks
generally move with changes in interest rates and the issuer's credit quality,
similar to the factors affecting debt securities. Nonconvertible preferred
securities will be treated as debt for fund investment limit purposes.
WARRANTS AND RIGHTS -- The fund may purchase warrants, which may be issued
together with bonds or preferred stocks. Warrants generally entitle the holder
to buy a proportionate amount of common stock at a specified price, usually
higher than the current market price. Warrants may be issued with an expiration
date or in perpetuity. Rights are similar to warrants except that they normally
entitle the holder to purchase common stock at a lower price than the current
market price.
OBLIGATIONS BACKED BY THE "FULL FAITH AND CREDIT" OF THE U.S. GOVERNMENT -- U.S.
government obligations include the following types of securities:
EuroPacific Growth Fund -- Page 5
<PAGE>
U.S. TREASURY SECURITIES -- U.S. Treasury securities include direct
obligations of the U.S. Treasury, such as Treasury bills, notes and bonds.
For these securities, the payment of principal and interest is
unconditionally guaranteed by the U.S. government, and thus they are of the
highest possible credit quality. Such securities are subject to variations
in market value due to fluctuations in interest rates, but, if held to
maturity, will be paid in full.
FEDERAL AGENCY SECURITIES -- The securities of certain U.S. government
agencies and government-sponsored entities are guaranteed as to the timely
payment of principal and interest by the full faith and credit of the U.S.
government. Such agencies and entities include the Government National
Mortgage Association (Ginnie Mae), the Veterans Administration (VA), the
Federal Housing Administration (FHA), the Export-Import Bank (Exim Bank),
the Overseas Private Investment Corporation (OPIC), the Commodity Credit
Corporation (CCC) and the Small Business Administration (SBA).
OTHER FEDERAL AGENCY OBLIGATIONS -- Additional federal agency securities are
neither direct obligations of, nor guaranteed by, the U.S. government. These
obligations include securities issued by certain U.S. government agencies and
government-sponsored entities. However, they generally involve some form of
federal sponsorship: some operate under a government charter; some are backed by
specific types of collateral; some are supported by the issuer's right to borrow
from the Treasury; and others are supported only by the credit of the issuing
government agency or entity. These agencies and entities include, but are not
limited to: Federal Home Loan Bank, Federal Home Loan Mortgage Corporation
(Freddie Mac), Federal National Mortgage Association (Fannie Mae), Tennessee
Valley Authority and Federal Farm Credit Bank System.
On September 7, 2008, Freddie Mac and Fannie Mae were placed into
conservatorship by their new regulator, the Federal Housing Finance Agency.
Simultaneously, the U.S. Treasury made a commitment of indefinite duration to
maintain the positive net worth of both firms.
CASH AND CASH EQUIVALENTS -- The fund may hold cash or invest in cash
equivalents. Cash equivalents include (a) commercial paper (for example,
short-term notes with maturities typically up to 12 months in length issued by
corporations, governmental bodies or bank/corporation sponsored conduits
(asset-backed commercial paper)) (b) short-term bank obligations (for example,
certificates of deposit, bankers' acceptances (time drafts on a commercial bank
where the bank accepts an irrevocable obligation to pay at maturity)) or bank
notes, (c) savings association and savings bank obligations (for example, bank
notes and certificates of deposit issued by savings banks or savings
associations), (d) securities of the U.S. government, its agencies or
instrumentalities that mature, or may be redeemed, in one year or less, and (e)
corporate bonds and notes that mature, or that may be redeemed, in one year or
less.
FORWARD COMMITMENT, WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The fund
may enter into commitments to purchase or sell securities at a future date. When
the fund agrees to purchase such securities, it assumes the risk of any decline
in value of the security from the date of the agreement. If the other party to
such a transaction fails to deliver or pay for the securities, the fund could
miss a favorable price or yield opportunity, or could experience a loss.
The fund will not use these transactions for the purpose of leveraging and will
segregate liquid assets that will be marked to market daily in an amount
sufficient to meet its payment obligations in these transactions. Although these
transactions will not be entered into for leveraging purposes, to the extent the
fund's aggregate commitments in connection with these transactions exceed its
segregated assets, the fund temporarily could be in a leveraged position
(because it
EuroPacific Growth Fund -- Page 6
<PAGE>
may have an amount greater than its net assets subject to market risk). Should
market values of the fund's portfolio securities decline while the fund is in a
leveraged position, greater depreciation of its net assets would likely occur
than if it were not in such a position. The fund will not borrow money to settle
these transactions and, therefore, will liquidate other portfolio securities in
advance of settlement if necessary to generate additional cash to meet its
obligations. After a transaction is entered into, the fund may still dispose of
or renegotiate the transaction. Additionally, prior to receiving delivery of
securities as part of a transaction, the fund may sell such securities.
REPURCHASE AGREEMENTS -- The fund may enter into repurchase agreements under
which the fund buys a security and obtains a simultaneous commitment from the
seller to repurchase the security at a specified time and price. Repurchase
agreements permit the fund to maintain liquidity and earn income over periods of
time as short as overnight. The seller must maintain with the fund's custodian
collateral equal to at least 100% of the repurchase price, including accrued
interest, as monitored daily by the investment adviser. The fund will only enter
into repurchase agreements involving securities in which it could otherwise
invest and with selected banks and securities dealers whose financial condition
is monitored by the investment adviser. If the seller under the repurchase
agreement defaults, the fund may incur a loss if the value of the collateral
securing the repurchase agreement has declined and may incur disposition costs
in connection with liquidating the collateral. If bankruptcy proceedings are
commenced with respect to the seller, realization of the collateral by the fund
may be delayed or limited.
REAL ESTATE INVESTMENT TRUSTS -- The fund may invest in securities issued by
real estate investment trusts (REITs), which primarily invest in real estate or
real estate-related loans. Equity REITs own real estate properties, while
mortgage REITs hold construction, development and/or long-term mortgage loans.
The values of REITs may be affected by changes in the value of the underlying
property of the trusts, the creditworthiness of the issuer, property taxes,
interest rates, tax laws and regulatory requirements, such as those relating to
the environment. Both types of REITs are dependent upon management skill and the
cash flows generated by their holdings, the real estate market in general and
the possibility of failing to qualify for any applicable pass-through tax
treatment or failing to maintain any applicable exemptive status afforded under
relevant laws.
INFLATION-INDEXED BONDS -- The fund may invest in inflation-indexed bonds issued
by governments, their agencies or instrumentalities and corporations. The fund
has no current intention of investing in inflation-index bonds issued by
corporations.
The principal amount of an inflation-indexed bond is adjusted in response to
changes in the level of the consumer price index. Repayment of the original bond
principal upon maturity (as adjusted for inflation) is guaranteed in the case of
U.S. Treasury inflation-indexed bonds, and therefore the principal amount of
such bonds cannot be reduced below par even during a period of deflation.
However, the current market value of these bonds is not guaranteed and will
fluctuate, reflecting the rise and fall of yields. In certain jurisdictions
outside the United States the repayment of the original bond principal upon the
maturity of an inflation-indexed bond is not guaranteed, allowing for the amount
of the bond repaid at maturity to be less than par.
The interest rate for inflation-indexed bonds is fixed at issuance as a
percentage of this adjustable principal. Accordingly, the actual interest income
may both rise and fall as the principal amount of the bonds adjusts in response
to movements of the consumer price index.
EuroPacific Growth Fund -- Page 7
<PAGE>
For example, typically interest income would rise during a period of inflation
and fall during a period of deflation.
RESTRICTED OR ILLIQUID SECURITIES -- The fund may purchase securities subject to
restrictions on resale. Restricted securities may only be sold pursuant to an
exemption from registration under the Securities Act of 1933 (the "1933 Act"),
or in a registered public offering. Where registration is required, the holder
of a registered security may be obligated to pay all or part of the registration
expense and a considerable period may elapse between the time it decides to seek
registration and the time it may be permitted to sell a security under an
effective registration statement. Difficulty in selling such securities may
result in a loss to the fund or cause it to incur additional administrative
costs.
Securities (including restricted securities) not actively traded will be
considered illiquid unless they have been specifically determined to be liquid
under procedures adopted by the fund's board of trustees, taking into account
factors such as the frequency and volume of trading, the commitment of dealers
to make markets and the availability of qualified investors, all of which can
change from time to time. The fund may incur certain additional costs in
disposing of illiquid securities.
* * * * * *
PORTFOLIO TURNOVER -- Portfolio changes will be made without regard to the
length of time particular investments may have been held. Short-term trading
profits are not the fund's objective, and changes in its investments are
generally accomplished gradually, though short-term transactions may
occasionally be made. High portfolio turnover involves correspondingly greater
transaction costs in the form of dealer spreads or brokerage commissions, and
may result in the realization of net capital gains, which are taxable when
distributed to shareholders.
The fund's portfolio turnover rates for the fiscal years ended March 31, 2008
and 2007 were 38% and 27%, respectively. The portfolio turnover rate would equal
100% if each security in a fund's portfolio were replaced once per year. See
"Financial highlights" in the prospectus for the fund's annual portfolio
turnover rate for each of the last five fiscal years.
FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS
All percentage limitations are considered at the time securities are purchased
and are based on the fund's net assets unless otherwise indicated. None of the
following investment restrictions involving a maximum percentage of assets will
be considered violated unless the excess occurs immediately after, and is caused
by, an acquisition by the fund.
FUNDAMENTAL POLICIES -- The fund has adopted the following fundamental policies
and investment restrictions, which may not be changed without approval by
holders of a majority of its outstanding shares. Such majority is defined in the
Investment Company Act of 1940, as amended (the "1940 Act"), as the vote of the
lesser of (a) 67% or more of the voting securities present at a shareholder
meeting, if the holders of more than 50% of the outstanding voting securities
are present in person or by proxy, or (b) more than 50% of the outstanding
voting securities.
EuroPacific Growth Fund -- Page 8
<PAGE>
The fund may not:
1. Invest in securities of another issuer (other than the U.S. government or
its agencies or instrumentalities), if immediately after and as a result of such
investment more than 5% of the value of the total assets would be invested in
the securities of such other issuer (except with respect to 25% of the value of
the total assets, the fund may exceed the 5% limitation with regards to
investments in the securities of any one foreign government);
2. Invest in companies for the purpose of exercising control or management;
3. Invest more than 25% of the value of its total assets in the securities of
companies primarily engaged in any one industry;
4. Invest more than 5% of its total assets in the securities of other
investment companies; such investments shall be limited to 3% of the voting
stock of any investment company provided, however, that investment in the open
market of a closed-end investment company where no more than customary brokers'
commissions are involved and investment in connection with a merger,
consolidation, acquisition or reorganization shall not be prohibited by this
restriction;
5. Buy or sell real estate in the ordinary course of its business; however,
the fund may invest in securities secured by real estate or interests therein or
issued by companies, including real estate investment trusts and funds, which
invest in real estate or interests therein;
6. Buy or sell commodities or commodity contracts in the ordinary course of
its business, provided, however, that entering into foreign currency contracts
shall not be prohibited by this restriction;
7. Lend any security or make any other loan if, as a result, more than 15% of
its total assets would be lent to third parties, but this limitation does not
apply to purchases of debt securities or to repurchase agreements;
8. Sell securities short except to the extent that the fund contemporaneously
owns or has the right to acquire, at no additional cost, securities identical to
those sold short;
9. Purchase securities on margin;
10. Issue senior securities or borrow money, except as permitted by the 1940
Act, as amended or any rule thereunder, any Securities and Exchange Commission
("SEC") or SEC staff interpretations thereof or any exceptions therefrom which
may be granted by the SEC;
11. Mortgage, pledge or hypothecate its total assets to any extent;
12. Purchase or retain the securities of any issuer, if those individual
officers and trustees of the fund, its investment adviser or principal
underwriter, each owning beneficially more than 1/2 of 1% of the securities of
such issuer, together own more than 5% of the securities of such issuer;
13. Invest more than 5% of the value of its total assets in securities of
companies having, together with their predecessors, a record of less than three
years of continuous operation;
EuroPacific Growth Fund -- Page 9
<PAGE>
14. Invest in puts, calls, straddles or spreads, or combinations thereof; or
15. Purchase partnership interests in oil, gas, or mineral exploration,
drilling or mining ventures.
NONFUNDAMENTAL POLICIES -- The following nonfundamental policies may be changed
without shareholder approval:
1. As to 75% of the fund's total assets, investments in any one issuer will be
limited to no more than 10% of the voting securities of such issuer;
2. The fund does not currently intend to engage in an ongoing or regular
securities lending program;
3. The fund will only borrow for temporary or emergency purposes and not for
investment in securities; and
4. The fund may not invest more than 15% of the value of its net assets in
illiquid securities.
5. The fund may not acquire securities of open-end investment companies or
unit investment trusts registered under the 1940 Act in reliance on Sections
12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.
EuroPacific Growth Fund -- Page 10
<PAGE>
MANAGEMENT OF THE FUND
"INDEPENDENT" TRUSTEES/1/
NAME, AGE AND NUMBER OF
POSITION WITH FUND PORTFOLIOS/3/
(YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS/4/ HELD
AS A TRUSTEE/2/) DURING PAST FIVE YEARS BY TRUSTEE BY TRUSTEE
-------------------------------------------------------------------------------------------------------------
Elisabeth Allison, 62 Partner, ANZI, Ltd. 3 Helicos BioSciences
Trustee (1991) (transactional work, Corporation
specializing in joint ventures
and strategic alliances);
Business negotiator, Harvard
Medical School
-------------------------------------------------------------------------------------------------------------
Vanessa C.L. Chang, 56 Director, EL & EL Investments 3 Edison International
Trustee (2005) (real estate); former
President and CEO,
ResolveItNow.com
(insurance-related Internet
company); former Senior Vice
President, Secured Capital
Corporation (real estate
investment bank); former
Partner, KPMG LLP (independent
registered public accounting
firm)
-------------------------------------------------------------------------------------------------------------
Nicholas Donatiello, Jr. President and CEO, Odyssey 3 Dolby Laboratories, Inc.
48 Ventures, Inc. (market
Trustee (2008) research and strategy
consulting firm)
-------------------------------------------------------------------------------------------------------------
Robert A. Fox, 72 Managing General Partner, Fox 8 Chemtura Corporation
Trustee (1984) Investments LP; corporate
director; retired President
and CEO, Foster Farms (poultry
producer)
-------------------------------------------------------------------------------------------------------------
Koichi Itoh, 68 Executive Chairman of the 5 None
Trustee (1994) Board, Itoh Building Co., Ltd.
(building management); former
President, Autosplice KK
(electronics)
-------------------------------------------------------------------------------------------------------------
William H. Kling,/5/ 67 President and CEO, American 7 Irwin Financial Corporation
Trustee (1987) Public Media Group
-------------------------------------------------------------------------------------------------------------
John G. McDonald, 71 Stanford Investors Professor, 9 iStar Financial, Inc.;
Trustee (1984) Graduate School of Business, Plum Creek Timber Co.;
Stanford University Scholastic Corporation;
Varian, Inc.
-------------------------------------------------------------------------------------------------------------
William I. Miller, 53 Chairman of the Board and CEO, 3 Cummins, Inc.
Chairman of the Board Irwin Financial Corporation
(Independent and
Non-Executive) (1992)
-------------------------------------------------------------------------------------------------------------
Alessandro Ovi, 65 Publisher and Editor, 3 Enia SpA;
Trustee (2002) Technology Review; President, Guala Closures SpA;
TechRev.srl; former Special Landi Renzo SpA;
Advisor to the Italian Prime ST Microelectronics SNV;
Minister; former Special Telecom Italia Media SpA
Advisor to the President of
the European Commission
-------------------------------------------------------------------------------------------------------------
Kirk P. Pendleton, 69 Chairman of the Board and CEO, 7 None
Trustee (1996) Cairnwood, Inc. (venture
capital investment)
-------------------------------------------------------------------------------------------------------------
Rozanne L. Ridgway, 73 Director of companies; Chair 3 Emerson Electric;
Trustee (2005) (non-executive), Sara Lee Corporation
Baltic-American Enterprise
Fund
-------------------------------------------------------------------------------------------------------------
EuroPacific Growth Fund -- Page 11
<PAGE>
"INTERESTED" TRUSTEES/6,7/
PRINCIPAL OCCUPATION(S)
DURING PAST FIVE YEARS
NAME, AGE AND AND POSITIONS NUMBER OF
POSITION WITH FUND HELD WITH AFFILIATED ENTITIES PORTFOLIOS/3/
(YEAR FIRST ELECTED OR THE PRINCIPAL UNDERWRITER OVERSEEN OTHER DIRECTORSHIPS/4/ HELD
AS A TRUSTEE/OFFICER/2/) OF THE FUND BY TRUSTEE BY TRUSTEE
-----------------------------------------------------------------------------------------------------------
Gina H. Despres, 67 Senior Vice President, Capital 4 None
Vice Chairman of the Research and Management
Board (1999) Company; Senior Vice
President, Capital Strategy
Research, Inc.*
-----------------------------------------------------------------------------------------------------------
Mark E. Denning, 51 Senior Vice President - 1 None
President (1994) Capital Research Global
Investors, Capital Research
Company*;Director, Capital
Research and Management
Company; Director, Capital
International Limited*
-----------------------------------------------------------------------------------------------------------
EuroPacific Growth Fund -- Page 12
<PAGE>
OTHER OFFICERS/7/
NAME, AGE AND
POSITION WITH FUND PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
(YEAR FIRST ELECTED AND POSITIONS HELD WITH AFFILIATED ENTITIES
AS AN OFFICER/2/) OR THE PRINCIPAL UNDERWRITER OF THE FUND
-------------------------------------------------------------------------------
Stephen E. Bepler, Senior Vice President - Capital Research Global
66 Investors, Capital Research Company*
Executive Vice
President (1984)
-------------------------------------------------------------------------------
Carl M. Kawaja, 44 Senior Vice President - Capital World Investors,
Senior Vice Capital Research and Management Company; Director,
President (2003) Capital Research and Management Company; Director,
Capital International, Inc.*; Director, Capital
International Asset Management, Inc.*
-------------------------------------------------------------------------------
Robert W. Lovelace, Senior Vice President - Capital World Investors,
46 Capital Research and Management Company; Executive Vice
Senior Vice President and Director, Capital Research and Management
President (1996) Company
-------------------------------------------------------------------------------
Michael J. Thawley, Senior Vice President, Capital Research and Management
59 Company; Senior Vice President, Capital Strategy
Senior Vice Research, Inc.*; former Australian Ambassador to the
President (2007) United States
-------------------------------------------------------------------------------
Michael J. Downer, Senior Vice President, Secretary and Coordinator of
54 Legal and Compliance, Capital Research and Management
Vice President Company; Director, American Funds Distributors, Inc.*;
(2004) Director, Capital Bank and Trust Company*
-------------------------------------------------------------------------------
Nicholas J. Grace, Senior Vice President - Capital World Investors,
43 Capital Research Company*
Vice President
(2004)
-------------------------------------------------------------------------------
Alwyn W. Heong, 49 Senior Vice President - Capital Research Global
Vice President Investors, Capital Research Company*
(1998)
-------------------------------------------------------------------------------
Sung Lee, 42 Senior Vice President - Capital Research Global
Vice President Investors, Capital Research Company*; Director, The
(2003) Capital Group Companies, Inc.*
-------------------------------------------------------------------------------
Vincent P. Corti, 52 Vice President - Fund Business Management Group,
Secretary (1984) Capital Research and Management Company
-------------------------------------------------------------------------------
Bryan K. Nielsen, 36 Vice President, Capital Guardian Trust Company*; Vice
Treasurer (2008) President, Capital International, Inc.*
-------------------------------------------------------------------------------
Tanya Schneider, 36 Assistant Vice President - Fund Business Management
Assistant Secretary Group, Capital Research and Management Company
(2007)
-------------------------------------------------------------------------------
Jennifer M. Vice President - Fund Business Management Group,
Buchheim, 35 Capital Research and Management Company
Assistant Treasurer
(2008)
-------------------------------------------------------------------------------
R. Marcia Gould, 54 Vice President - Fund Business Management Group,
Assistant Treasurer Capital Research and Management Company
(1993)
-------------------------------------------------------------------------------
* Company affiliated with Capital Research and Management Company.
1 The term "independent" trustee refers to a trustee who is not an "interested
person" of the fund within the meaning of the 1940 Act.
2 Trustees and officers of the fund serve until their resignation, removal or
retirement.
3 Funds managed by Capital Research and Management Company, including the
American Funds; American Funds Insurance
EuroPacific Growth Fund -- Page 13
<PAGE>
Series,(R) which is composed of 16 funds and serves as the underlying
investment vehicle for certain variable insurance contracts; American Funds
Target Date Retirement Series,(R)/ /Inc., which is composed of nine funds and
is available through tax-deferred retirement plans and IRAs; and Endowments,
which is composed of two portfolios and is available to certain nonprofit
organizations.
4 This includes all directorships (other than those in the American Funds or
other funds managed by Capital Research and Management Company) that are held
by each trustee as a director of a public company or a registered investment
company.
5 During the past two years, Gordon Crawford (Senior Vice President, Capital
Research Global Investors, Capital Research and Management Company and
Director, The Capital Group Companies, Inc.) has been a trustee of Southern
California Public Radio, where Mr. Kling serves as a trustee and as Second Vice
Chair. Mr. Crawford does not participate in decisions directly related to Mr.
Kling's status or compensation.
6 "Interested persons" of the fund within the meaning of the 1940 Act, on the
basis of their affiliation with the fund's investment adviser, Capital Research
and Management Company, or affiliated entities (including the fund's principal
underwriter).
7 All of the officers listed are officers and/or directors/trustees of one or
more of the other funds for which Capital Research and Management Company
serves as investment adviser.
THE ADDRESS FOR ALL TRUSTEES AND OFFICERS OF THE FUND IS 333 SOUTH HOPE STREET,
55TH FLOOR, LOS ANGELES, CALIFORNIA 90071, ATTENTION: SECRETARY.
EuroPacific Growth Fund -- Page 14
<PAGE>
FUND SHARES OWNED BY TRUSTEES AS OF DECEMBER 31, 2008:
AGGREGATE
DOLLAR
RANGE/1/ OF
INDEPENDENT
AGGREGATE TRUSTEES
DOLLAR RANGE/1/ DOLLAR DEFERRED
OF SHARES RANGE/1 /OF COMPENSATION/2/
OWNED IN INDEPENDENT ALLOCATED TO
ALL FUNDS TRUSTEES ALL FUNDS
IN THE DEFERRED WITHIN
DOLLAR RANGE/1/ AMERICAN FUNDS COMPENSATION/2/ AMERICAN FUNDS
OF FUND FAMILY OVERSEEN ALLOCATED FAMILY OVERSEEN
NAME SHARES OWNED BY TRUSTEE TO FUND BY TRUSTEE
--------------------------------------------------------------------------------------------
"INDEPENDENT" TRUSTEES
--------------------------------------------------------------------------------------------
Elisabeth Allison Over $100,000 Over $100,000 N/A N/A
--------------------------------------------------------------------------------------------
Vanessa C.L. Chang $10,001 - Over $100,000 N/A N/A
$50,000
--------------------------------------------------------------------------------------------
Nicholas Donatiello, $10,001 - $10,001 - N/A N/A
Jr. $50,000 $50,000
--------------------------------------------------------------------------------------------
Robert A. Fox Over $100,000 Over $100,000 Over $100,000 Over $100,000
--------------------------------------------------------------------------------------------
Koichi Itoh Over $100,000 Over $100,000 Over $100,000 Over $100,000
--------------------------------------------------------------------------------------------
William H. Kling $50,001 - Over $100,000 N/A N/A
$100,000
--------------------------------------------------------------------------------------------
John G. McDonald Over $100,000 Over $100,000 N/A N/A
--------------------------------------------------------------------------------------------
William I. Miller Over $100,000 Over $100,000 Over $100,000 Over $100,000
--------------------------------------------------------------------------------------------
Alessandro Ovi $50,001 - Over $100,000 $10,001 - $10,001 - $50,000
$100,000 $50,000
--------------------------------------------------------------------------------------------
Kirk P. Pendleton Over $100,000 Over $100,000 Over $100,000 Over $100,000
--------------------------------------------------------------------------------------------
Rozanne L. Ridgway $1 - $10,000 $50,001 - Over $100,000 Over $100,000
$100,000
--------------------------------------------------------------------------------------------
EuroPacific Growth Fund -- Page 15
<PAGE>
AGGREGATE
DOLLAR RANGE/1/
OF SHARES
OWNED IN
ALL FUNDS
IN THE
DOLLAR RANGE/1/ AMERICAN FUNDS
OF FUND FAMILY OVERSEEN
NAME SHARES OWNED BY TRUSTEE
-----------------------------------------------------------------------------
"INTERESTED" TRUSTEES
-----------------------------------------------------------------------------
Mark E. None None
Denning/3/
-----------------------------------------------------------------------------
Gina H. Despres $1 - $10,000 Over $100,000
-----------------------------------------------------------------------------
1 Ownership disclosure is made using the following ranges: None; $1 - $10,000;
$10,001 - $50,000; $50,001 - $100,000; and Over $100,000. The amounts listed
for "interested" trustees include shares owned through The Capital Group
Companies, Inc. retirement plan and 401(k) plan.
2 Eligible trustees may defer their compensation under a nonqualified deferred
compensation plan. Deferred amounts accumulate at an earnings rate determined
by the total return of one or more American Funds as designated by the trustee.
3 Trustee resides outside the United States. As such, tax considerations may
adversely influence his or her ability to own shares of the fund.
TRUSTEE COMPENSATION -- No compensation is paid by the fund to any officer or
trustee who is a director, officer or employee of the investment adviser or its
affiliates. The boards of funds advised by the investment adviser typically meet
either individually or jointly with the boards of one or more other such funds
with substantially overlapping board membership (in each case referred to as a
"board cluster"). The fund typically pays each independent trustee an annual
fee, which ranges from $10,000 to $20,000, based primarily on the total number
of board clusters on which that independent trustee serves.
In addition, the fund generally pays independent trustees attendance and other
fees for meetings of the board and its committees. Board and committee chairs
receive additional fees for their services.
Independent trustees also receive attendance fees for certain special joint
meetings and information sessions with directors and trustees of other groupings
of funds advised by the investment adviser. The fund and the other funds served
by each independent trustee each pay an equal portion of these attendance fees.
No pension or retirement benefits are accrued as part of fund expenses.
Independent trustees may elect, on a voluntary basis, to defer all or a portion
of their fees through a deferred compensation plan in effect for the fund. The
fund also reimburses certain expenses of the independent trustees.
EuroPacific Growth Fund -- Page 16
<PAGE>
TRUSTEE COMPENSATION EARNED DURING THE FISCAL YEAR ENDED MARCH 31, 2008
TOTAL COMPENSATION (INCLUDING
VOLUNTARILY DEFERRED
COMPENSATION/1/)
AGGREGATE COMPENSATION FROM ALL FUNDS MANAGED BY
(INCLUDING VOLUNTARILY CAPITAL RESEARCH AND
DEFERRED COMPENSATION/1/) MANAGEMENT
NAME FROM THE FUND COMPANY OR ITS AFFILIATES/2/
------------------------------------------------------------------------------------------------------------------------------------
Elisabeth Allison $36,833 $107,500
------------------------------------------------------------------------------------------------------------------------------------
Vanessa C.L. Chang 37,917 110,500
------------------------------------------------------------------------------------------------------------------------------------
Nicholas Donatiello, Jr./4/ None None
------------------------------------------------------------------------------------------------------------------------------------
Robert A. Fox/3/ 28,486 271,000
------------------------------------------------------------------------------------------------------------------------------------
Koichi Itoh/3/ 28,000 176,500
------------------------------------------------------------------------------------------------------------------------------------
William H. Kling 27,358 285,125
------------------------------------------------------------------------------------------------------------------------------------
John G. McDonald/3/ 32,375 358,250
------------------------------------------------------------------------------------------------------------------------------------
William I. Miller/3/ 39,167 117,500
------------------------------------------------------------------------------------------------------------------------------------
Alessandro Ovi 32,833 98,500
------------------------------------------------------------------------------------------------------------------------------------
Kirk Pendleton/3/ 30,030 271,199
------------------------------------------------------------------------------------------------------------------------------------
Rozanne L. Ridgway/3/ 36,333 106,000
------------------------------------------------------------------------------------------------------------------------------------
1 Amounts may be deferred by eligible trustees under a nonqualified deferred
compensation plan adopted by the fund in 1993. Deferred amounts accumulate at
an earnings rate determined by the total return of one or more American Funds
as designated by the trustees. Compensation shown in this table for the fiscal
year ended March 31, 2008 does not include earnings on amounts deferred in
previous fiscal years. See footnote 3 to this table for more information.
2 Funds managed by Capital Research and Management Company, including the
American Funds; American Funds Insurance Series,(R) which is composed of 16
funds and serves as the underlying investment vehicle for certain variable
insurance contracts; American Funds Target Date Retirement Series,(R)/ /Inc.,
which is composed of nine funds and is available through tax-deferred
retirement plans and IRAs; and Endowments, which is composed of two portfolios
and is available to certain nonprofit organizations.
3 Since the deferred compensation plan's adoption, the total amount of deferred
compensation accrued by the fund (plus earnings thereon) through the 2008
fiscal year for participating trustees is as follows: Robert A. Fox ($958,056),
Koichi Itoh ($664,702), John G. McDonald ($545,596), William I. Miller
($365,646), Kirk P. Pendleton ($664,064) and Rozanne L. Ridgway ($148,896).
Amounts deferred and accumulated earnings thereon are not funded and are
general unsecured liabilities of the fund until paid to the trustees.
4 Nicholas Donatiello, Jr. was elected on December 16, 2008.
As of March 1, 2009, the officers and trustees of the fund and their families,
as a group, owned beneficially or of record less than 1% of the outstanding
shares of the fund.
FUND ORGANIZATION AND THE BOARD OF TRUSTEES -- The fund, an open-end,
diversified management investment company, was organized as a Massachusetts
business trust on May 17, 1983. Although the board of trustees has delegated
day-to-day oversight to the investment adviser, all fund operations are
supervised by the fund's board, which meets periodically and performs duties
required by applicable state and federal laws.
Massachusetts common law provides that a trustee of a Massachusetts business
trust owes a fiduciary duty to the trust and must carry out his or her
responsibilities as a trustee in accordance
EuroPacific Growth Fund -- Page 17
<PAGE>
with that fiduciary duty. Generally, a trustee will satisfy his or her duties if
he or she acts in good faith and uses ordinary prudence.
Independent board members are paid certain fees for services rendered to the
fund as described above. They may elect to defer all or a portion of these fees
through a deferred compensation plan in effect for the fund.
The fund has several different classes of shares. Shares of each class represent
an interest in the same investment portfolio. Each class has pro rata rights as
to voting, redemption, dividends and liquidation, except that each class bears
different distribution expenses and may bear different transfer agent fees and
other expenses properly attributable to the particular class as approved by the
board of trustees and set forth in the fund's rule 18f-3 Plan. Each class'
shareholders have exclusive voting rights with respect to the respective class'
rule 12b-1 plans adopted in connection with the distribution of shares and on
other matters in which the interests of one class are different from interests
in another class. Shares of all classes of the fund vote together on matters
that affect all classes in substantially the same manner. Each class votes as a
class on matters that affect that class alone. Note that 529 college savings
plan account owners invested in Class 529 shares are not shareholders of the
fund and, accordingly, do not have the rights of a shareholder, such as the
right to vote proxies relating to fund shares. As the legal owner of the fund's
Class 529 shares, the Virginia College Savings Plan/SM/ will vote any proxies
relating to such fund shares.
The fund does not hold annual meetings of shareholders. However, significant
matters that require shareholder approval, such as certain elections of board
members or a change in a fundamental investment policy, will be presented to
shareholders at a meeting called for such purpose. Shareholders have one vote
per share owned. At the request of the holders of at least 10% of the shares,
the fund will hold a meeting at which any member of the board could be removed
by a majority vote.
The fund's declaration of trust and by-laws as well as separate indemnification
agreements that the fund has entered into with independent trustees provide in
effect that, subject to certain conditions, the fund will indemnify its officers
and trustees against liabilities or expenses actually and reasonably incurred by
them relating to their service to the fund. However, trustees are not protected
from liability by reason of their willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of their
office.
COMMITTEES OF THE BOARD OF TRUSTEES -- The fund has an audit committee comprised
of Elisabeth Allison, Vanessa C.L. Chang, Nicholas Donatiello, Jr., Koichi Itoh,
and Rozanne L. Ridgway, none of whom is an "interested person" of the fund
within the meaning of the 1940 Act. The committee provides oversight regarding
the fund's accounting and financial reporting policies and practices, its
internal controls and the internal controls of the fund's principal service
providers. The committee acts as a liaison between the fund's independent
registered public accounting firm and the full board of trustees. Six audit
committee meetings were held during the 2008 fiscal year.
The fund has a governance and contracts committee comprised of Elisabeth
Allison, Vanessa C.L. Chang, Nicholas Donatiello, Jr., Robert A. Fox, Koichi
Itoh, William H. Kling, John G. McDonald, William I. Miller, Alessandro Ovi,
Kirk P. Pendleton and Rozanne L. Ridgway, none of whom is an "interested person"
of the fund within the meaning of the 1940 Act. The committee's principal
function is to request, review and consider the information deemed necessary to
EuroPacific Growth Fund -- Page 18
<PAGE>
evaluate the terms of certain agreements between the fund and its investment
adviser or the investment adviser's affiliates, such as the Investment Advisory
and Service Agreement, Principal Underwriting Agreement, Administrative Services
Agreement and Plans of Distribution adopted pursuant to rule 12b-1 under the
1940 Act, that the fund may enter into, renew or continue, and to make its
recommendations to the full board of trustees on these matters. One governance
and contracts committee meeting was held during the 2008 fiscal year.
The fund has a nominating committee comprised of Robert A. Fox, William H.
Kling, John G. McDonald, Alessandro Ovi and Kirk P. Pendleton, none of whom is
an "interested person" of the fund within the meaning of the 1940 Act. The
committee periodically reviews such issues as the board's composition,
responsibilities, committees, compensation and other relevant issues, and
recommends any appropriate changes to the full board of trustees. The committee
also evaluates, selects and nominates independent trustee candidates to the full
board of trustees. While the committee normally is able to identify from its own
and other resources an ample number of qualified candidates, it will consider
shareholder suggestions of persons to be considered as nominees to fill future
vacancies on the board. Such suggestions must be sent in writing to the
nominating committee of the fund, addressed to the fund's secretary, and must be
accompanied by complete biographical and occupational data on the prospective
nominee, along with a written consent of the prospective nominee for
consideration of his or her name by the committee. Two nominating committee
meetings were held during the 2008 fiscal year.
PROXY VOTING PROCEDURES AND PRINCIPLES -- The fund's investment adviser, in
consultation with the fund's board, has adopted Proxy Voting Procedures and
Principles (the "Principles") with respect to voting proxies of securities held
by the fund, other American Funds, Endowments and American Funds Insurance
Series. The complete text of these principles is available on the American Funds
website at americanfunds.com. Certain American Funds have established separate
proxy voting committees that vote proxies or delegate to a voting officer the
authority to vote on behalf of those funds. Proxies for all other funds
(including the fund) are voted by a committee of the appropriate equity
investment division of the investment adviser under authority delegated by those
funds' boards. Therefore, if more than one fund invests in the same company,
they may vote differently on the same proposal.
All U.S. proxies are voted. Proxies for companies outside the U.S. also are
voted, provided there is sufficient time and information available. After a
proxy statement is received, the investment adviser prepares a summary of the
proposals contained in the proxy statement. A discussion of any potential
conflicts of interest also is included in the summary. For proxies of securities
managed by a particular investment division of the investment adviser, the
initial voting recommendation is made by one or more of the division's
investment analysts familiar with the company and industry. A second
recommendation is made by a proxy coordinator (an investment analyst with
experience in corporate governance and proxy voting matters) within the
appropriate investment division, based on knowledge of these Principles and
familiarity with proxy-related issues. The proxy summary and voting
recommendations are made available to the appropriate proxy voting committee for
a final voting decision.
The analyst and proxy coordinator making voting recommendations are responsible
for noting any potential material conflicts of interest. One example might be
where a director of one or more American Funds is also a director of a company
whose proxy is being voted. In such instances, proxy voting committee members
are alerted to the potential conflict. The proxy voting committee may then elect
to vote the proxy or seek a third-party recommendation or vote of an ad hoc
group of committee members.
EuroPacific Growth Fund -- Page 19
<PAGE>
The Principles, which have been in effect in substantially their current form
for many years, provide an important framework for analysis and decision-making
by all funds. However, they are not exhaustive and do not address all potential
issues. The Principles provide a certain amount of flexibility so that all
relevant facts and circumstances can be considered in connection with every
vote. As a result, each proxy received is voted on a case-by-case basis
considering the specific circumstances of each proposal. The voting process
reflects the funds' understanding of the company's business, its management and
its relationship with shareholders over time.
Information regarding how the fund voted proxies relating to portfolio
securities during the 12-month period ended June 30 of each year will be
available on or about September 1 of each year (a) without charge, upon request
by calling American Funds Service Company at 800/421-0180, (b) on the American
Funds website and (c) on the SEC's website at sec.gov.
The following summary sets forth the general positions of the American Funds,
Endowments, American Funds Insurance Series and the investment adviser on
various proposals. A copy of the full Principles is available upon request, free
of charge, by calling American Funds Service Company or visiting the American
Funds website.
DIRECTOR MATTERS -- The election of a company's slate of nominees for
director generally is supported. Votes may be withheld for some or all of
the nominees if this is determined to be in the best interest of
shareholders. Separation of the chairman and CEO positions also may be
supported.
GOVERNANCE PROVISIONS -- Typically, proposals to declassify a board (elect
all directors annually) are supported based on the belief that this
increases the directors' sense of accountability to shareholders. Proposals
for cumulative voting generally are supported in order to promote
management and board accountability and an opportunity for leadership
change. Proposals designed to make director elections more meaningful,
either by requiring a majority vote or by requiring any director receiving
more withhold votes than affirmative votes to tender his or her
resignation, generally are supported.
SHAREHOLDER RIGHTS -- Proposals to repeal an existing poison pill generally
are supported. (There may be certain circumstances, however, when a proxy
voting committee of a fund or an investment division of the investment
adviser believes that a company needs to maintain anti-takeover
protection.) Proposals to eliminate the right of shareholders to act by
written consent or to take away a shareholder's right to call a special
meeting typically are not supported.
COMPENSATION AND BENEFIT PLANS -- Option plans are complicated, and many
factors are considered in evaluating a plan. Each plan is evaluated based
on protecting shareholder interests and a knowledge of the company and its
management. Considerations include the pricing (or repricing) of options
awarded under the plan and the impact of dilution on existing shareholders
from past and future equity awards. Compensation packages should be
structured to attract, motivate and retain existing employees and qualified
directors; however, they should not be excessive.
ROUTINE MATTERS -- The ratification of auditors, procedural matters
relating to the annual meeting and changes to company name are examples of
items considered routine. Such items generally are voted in favor of
management's recommendations unless circumstances indicate otherwise.
EuroPacific Growth Fund -- Page 20
<PAGE>
PRINCIPAL FUND SHAREHOLDERS -- The following table identifies those investors
who own of record or are known by the fund to own beneficially 5% or more of any
class of its shares as of the opening of business on March 1, 2009. Unless
otherwise indicated, the ownership percentages below represent ownership of
record rather than beneficial ownership.
NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE
-------------------------------------------------------------------------------
Edward D. Jones & Co. Record Class A 8.40%
Omnibus Account Class B 5.65
Maryland Heights, MO
-------------------------------------------------------------------------------
First Clearing, LLC Record Class A 6.48
Custody Account Class B 10.46
Glen Allen, VA Class C 11.33
Class F-1 8.56
-------------------------------------------------------------------------------
Citigroup Global Markets, Inc. Record Class B 7.37
Omnibus Account Class C 19.77
New York, NY Class F-1 9.88
-------------------------------------------------------------------------------
Merrill Lynch Record Class B 5.02
Omnibus Account Class C 17.49
Jacksonville, FL Class R-4 14.44
-------------------------------------------------------------------------------
Charles Schwab & Co., Inc. Record Class F-1 10.31
Custody Account Class F-2 27.08
San Francisco. CA Class R-4 5.60
Class R-5 5.49
-------------------------------------------------------------------------------
Morgan Stanley & Co., Inc. Record Class F-1 5.43
Omnibus Account
Jersey City, NJ
-------------------------------------------------------------------------------
NFS, LLC FEBO Record Class F-2 5.37
Trust Co. of Oxford Beneficial
Indianapolis, IN
-------------------------------------------------------------------------------
Hartford Life Insurance Co. Separate Record Class R-1 37.54
Account Beneficial
401K Plan
Hartford, CT
-------------------------------------------------------------------------------
Church of God Record Class R-1 8.05
Des Moines, IA
-------------------------------------------------------------------------------
ING Life Insurance & Annuity Record Class R-3 8.12
Hartford, CT
-------------------------------------------------------------------------------
Great-West Life & Annuity Insurance Co. Record Class R-3 6.19
Greenwood Village, CO
-------------------------------------------------------------------------------
NFS, LLC FEBO Record Class R-4 8.23
401K Plans Beneficial Class R-5 11.53
Covington, KY
-------------------------------------------------------------------------------
UNLESS OTHERWISE NOTED, REFERENCES IN THIS STATEMENT OF ADDITIONAL INFORMATION
TO CLASS F SHARES, CLASS R SHARES OR CLASS 529 SHARES REFER TO BOTH F SHARE
CLASSES, ALL R SHARE CLASSES OR ALL 529 SHARE CLASSES, RESPECTIVELY.
EuroPacific Growth Fund -- Page 21
<PAGE>
INVESTMENT ADVISER -- Capital Research and Management Company, the fund's
investment adviser, founded in 1931, maintains research facilities in the United
States and abroad (Los Angeles, San Francisco, New York, Washington, DC, London,
Geneva, Hong Kong, Singapore and Tokyo). These facilities are staffed with
experienced investment professionals. The investment adviser is located at 333
South Hope Street, Los Angeles, CA 90071 and 6455 Irvine Center Drive, Irvine,
CA 92618. It is a wholly owned subsidiary of The Capital Group Companies, Inc.,
a holding company for several investment management subsidiaries. Capital
Research and Management Company manages equity assets through two investment
divisions, Capital World Investors and Capital Research Global Investors, and
manages fixed-income assets through its Fixed Income division. Capital World
Investors and Capital Research Global Investors make investment decisions on an
independent basis.
The investment adviser has adopted policies and procedures that address issues
that may arise as a result of an investment professional's management of the
fund and other funds and accounts. Potential issues could involve allocation of
investment opportunities and trades among funds and accounts, use of information
regarding the timing of fund trades, investment professional compensation and
voting relating to portfolio securities. The investment adviser believes that
its policies and procedures are reasonably designed to address these issues.
COMPENSATION OF INVESTMENT PROFESSIONALS -- As described in the prospectus, the
investment adviser uses a system of multiple portfolio counselors in managing
fund assets. In addition, Capital Research and Management Company's investment
analysts may make investment decisions with respect to a portion of a fund's
portfolio within their research coverage.
Portfolio counselors and investment analysts are paid competitive salaries by
Capital Research and Management Company. In addition, they may receive bonuses
based on their individual portfolio results. Investment professionals also may
participate in profit-sharing plans. The relative mix of compensation
represented by bonuses, salary and profit-sharing plans will vary depending on
the individual's portfolio results, contributions to the organization and other
factors.
To encourage a long-term focus, bonuses based on investment results are
calculated by comparing pretax total investment returns to relevant benchmarks
over the most recent year, a four-year rolling average and an eight-year rolling
average with greater weight placed on the four-year and eight-year rolling
averages. For portfolio counselors, benchmarks may include measures of the
marketplaces in which the fund invests and measures of the results of comparable
mutual funds. For investment analysts, benchmarks may include relevant market
measures and appropriate industry or sector indexes reflecting their areas of
expertise. Capital Research and Management Company makes periodic subjective
assessments of analysts' contributions to the investment process and this is an
element of their overall compensation. The investment results of each of the
fund's portfolio counselors may be measured against one or more of the following
benchmarks, depending on his or her investment focus: MSCI All Country World
Index ex-USA and Lipper International Funds Index.
PORTFOLIO COUNSELOR FUND HOLDINGS AND OTHER MANAGED ACCOUNTS -- As described
below, portfolio counselors may personally own shares of the fund. In addition,
portfolio counselors may manage portions of other mutual funds or accounts
advised by Capital Research and Management Company or its affiliates.
EuroPacific Growth Fund -- Page 22
<PAGE>
THE FOLLOWING TABLE REFLECTS INFORMATION AS OF MARCH 31, 2008:
NUMBER NUMBER
OF OTHER OF OTHER NUMBER
REGISTERED POOLED OF OTHER
INVESTMENT INVESTMENT ACCOUNTS
COMPANIES (RICS) VEHICLES (PIVS) FOR WHICH
FOR WHICH FOR WHICH PORTFOLIO
PORTFOLIO PORTFOLIO COUNSELOR
DOLLAR RANGE COUNSELOR COUNSELOR IS A MANAGER
OF FUND IS A MANAGER IS A MANAGER (ASSETS OF
PORTFOLIO SHARES (ASSETS OF RICS (ASSETS OF PIVS OTHER ACCOUNTS
COUNSELOR OWNED/1/ IN BILLIONS)/2/ IN BILLIONS)/3/ IN BILLIONS)/4/
------------------------------------------------------------------------------------------
Mark E. Denning None/5/ 5 $256.7 1 $0.11 None
-------------------------------------------------------------------------------------------
Stephen E. Bepler Over 2 $181.4 None None
$1,000,000
-------------------------------------------------------------------------------------------
Carl M. Kawaja $500,001 - 3 $174.6 1 $1.02 None
$1,000,000
-------------------------------------------------------------------------------------------
Robert W. Over 3 $174.6 1 $1.02 None
Lovelace $1,000,000
-------------------------------------------------------------------------------------------
Nicholas J. Grace $50,001 - 2 $102.9 None None
$100,000
-------------------------------------------------------------------------------------------
Alwyn W. Heong $100,001 - 3 $225.6 None None
$500,000
-------------------------------------------------------------------------------------------
Sung Lee $100,001 - 2 $208.0 None None
$500,000
-------------------------------------------------------------------------------------------
Jonathan Knowles $100,001 - 1 $ 22.6 None None
$500,000
-------------------------------------------------------------------------------------------
1 Ownership disclosure is made using the following ranges: None; $1 - $10,000;
$10,001 - $50,000; $50,001 - $100,000; $100,001 - $500,000; $500,001 -
$1,000,000; and Over $1,000,000. The amounts listed include shares owned
through The Capital Group Companies, Inc. retirement plan and 401(k) plan.
2 Indicates fund(s) where the portfolio counselor also has significant
responsibilities for the day to day management of the fund(s). Assets noted are
the total net assets of the registered investment companies and are not the
total assets managed by the individual, which is a substantially lower amount.
No fund has an advisory fee that is based on the performance of the fund.
3 Represents funds advised or sub-advised by Capital Research and Management
Company and sold outside the United States and/ or fixed-income assets in
institutional accounts managed by investment adviser subsidiaries of Capital
Group International, Inc., an affiliate of Capital Research and Management
Company. Assets noted are the total net assets of the funds or accounts and are
not the total assets managed by the individual, which is a substantially lower
amount. No fund or account has an advisory fee that is based on the performance
of the fund or account.
4 Reflects other professionally managed accounts held at companies affiliated
with Capital Research and Management Company. Personal brokerage accounts of
portfolio counselors and their families are not reflected.
5 Portfolio counselor resides outside the United States. As such, tax
considerations may adversely influence his or her ability to own shares of the
fund.
INVESTMENT ADVISORY AND SERVICE AGREEMENT -- The Investment Advisory and Service
Agreement (the "Agreement") between the fund and the investment adviser will
continue in effect until December 31, 2009, unless sooner terminated, and may be
renewed from year to year thereafter, provided that any such renewal has been
specifically approved at least annually by (a) the board of trustees, or by the
vote of a majority (as defined in the 1940 Act) of the
EuroPacific Growth Fund -- Page 23
<PAGE>
outstanding voting securities of the fund, and (b) the vote of a majority of
trustees who are not parties to the Agreement or interested persons (as defined
in the 1940 Act) of any such party, cast in person at a meeting called for the
purpose of voting on such approval. The Agreement provides that the investment
adviser has no liability to the fund for its acts or omissions in the
performance of its obligations to the fund not involving willful misconduct, bad
faith, gross negligence or reckless disregard of its obligations under the
Agreement. The Agreement also provides that either party has the right to
terminate it, without penalty, upon 60 days' written notice to the other party,
and that the Agreement automatically terminates in the event of its assignment
(as defined in the 1940 Act).
In addition to providing investment advisory services, the investment adviser
furnishes the services and pays the compensation and travel expenses of persons
to perform the fund's executive, administrative, clerical and bookkeeping
functions, and provides suitable office space, necessary small office equipment
and utilities, general purpose accounting forms, supplies and postage used at
the fund's offices. The fund pays all expenses not assumed by the investment
adviser, including, but not limited to: custodian, stock transfer and dividend
disbursing fees and expenses; shareholder recordkeeping and administrative
expenses; costs of the designing, printing and mailing of reports, prospectuses,
proxy statements and notices to its shareholders; taxes; expenses of the
issuance and redemption of fund shares (including stock certificates,
registration and qualification fees and expenses); expenses pursuant to the
fund's plans of distribution (described below); legal and auditing expenses;
compensation, fees and expenses paid to independent trustees; association dues;
costs of stationery and forms prepared exclusively for the fund; and costs of
assembling and storing shareholder account data.
As compensation for its services, the investment adviser receives a monthly fee
that is accrued daily, calculated at the annual rate of 0.69% on the first $500
million of the fund's average net assets, 0.59% of such net assets in excess of
$500 million but not exceeding $1.0 billion, 0.53% of such net assets in excess
of $1.0 billion but not exceeding $1.5 billion, 0.50% of such net assets in
excess of $1.5 billion but not exceeding $2.5 billion, 0.48% of such net assets
in excess of $2.5 billion but not exceeding $4.0 billion, 0.47% of such net
assets in excess of $4.0 billion but not exceeding $6.5 billion, 0.46% of such
net assets in excess of $6.5 billion but not exceeding $10.5 billion, 0.45% of
such net assets in excess of $10.5 billion but not exceeding $17 billion, 0.44%
of such net assets in excess of $17 billion but not exceeding $21 billion, 0.43%
of such net assets in excess of $21 billion but not exceeding $27 billion,
0.425% of such net assets in excess of $27 billion but not exceeding $34
billion, 0.42% of such net assets in excess of $34 billion but not exceeding $44
billion, 0.415% of such net assets in excess of $44 billion but not exceeding
$55 billion, 0.410% of such net assets in excess of $55 billion but not
exceeding $71 billion, 0.405% of such net assets in excess of $71 billion but
not exceeding $89 billion, 0.40% of such net assets in excess of $89 billion but
not exceeding $115 billion, and 0.397% of such net assets in excess of $115
billion.
The investment adviser has agreed that in the event the Class A expenses of the
fund (with the exclusion of interest, taxes, brokerage costs, distribution
expenses pursuant to a plan under rule 12b-1 and extraordinary expenses such as
litigation and acquisitions or other expenses excludable under applicable state
securities laws or regulations) for any fiscal year ending on a date on which
the Agreement is in effect exceed the expense limitations, if any, applicable to
the fund pursuant to state securities laws or any related regulations, it will
reduce its fee by the extent of such excess and, if required pursuant to any
such laws or any regulations thereunder, will reimburse the fund in the amount
of such excess. To the extent the fund's management fee must be waived due to
Class A share expense ratios exceeding the above limit, management fees will
EuroPacific Growth Fund -- Page 24
<PAGE>
be reduced similarly for all classes of shares of the fund, or other Class A
fees will be waived in lieu of management fees.
For the fiscal years ended March 31, 2008, 2007 and 2006, the investment adviser
was entitled to receive from the fund management fees of $487,787,000,
$387,385,000 and $279,176,000, respectively. After giving effect to the
management fee waiver described below, the fund paid the investment adviser
management fees of $438,939,000 (a reduction of $48,848,000), $348,593,000 (a
reduction of $38,792,000) and $251,258,000 (a reduction of $27,918,000) for the
fiscal years ended March 31, 2008, 2007 and 2006, respectively.
For the period from September 1, 2004 through March 31, 2005, the investment
adviser agreed to waive 5% of the management fees that it was otherwise entitled
to receive under the Agreement. From April 1, 2005 through December 31, 2008,
this waiver increased to 10% of the management fees that the investment adviser
was otherwise entitled to receive. The waiver was discontinued effective January
1, 2009.
ADMINISTRATIVE SERVICES AGREEMENT -- The Administrative Services Agreement (the
"Administrative Agreement") between the fund and the investment adviser relating
to the fund's Class C, F, R and 529 shares will continue in effect until
December 31, 2009, unless sooner terminated, and may be renewed from year to
year thereafter, provided that any such renewal has been specifically approved
at least annually by the vote of a majority of trustees who are not parties to
the Administrative Agreement or interested persons (as defined in the 1940 Act)
of any such party, cast in person at a meeting called for the purpose of voting
on such approval. The fund may terminate the Administrative Agreement at any
time by vote of a majority of independent trustees. The investment adviser has
the right to terminate the Administrative Agreement upon 60 days' written notice
to the fund. The Administrative Agreement automatically terminates in the event
of its assignment (as defined in the 1940 Act).
Under the Administrative Agreement, the investment adviser provides certain
transfer agent and administrative services for shareholders of the fund's Class
C and F shares, and Class R and 529 shares. The investment adviser may contract
with third parties, including American Funds Service Company,/(R)/ the fund's
Transfer Agent, to provide some of these services. Services include, but are not
limited to, shareholder account maintenance, transaction processing, tax
information reporting and shareholder and fund communications. In addition, the
investment adviser monitors, coordinates, oversees and assists with the
activities performed by third parties providing such services. For Class R-2
shares, the investment adviser has agreed to pay a portion of the fees payable
under the Administrative Agreement that would otherwise have been paid by the
fund. For the year ended March 31, 2008, the total fees paid by the investment
adviser were $23,000.
The investment adviser receives an administrative services fee at the annual
rate of up to 0.15% of the average daily net assets for Class C, F, R (excluding
Class R-5 and R-6 shares) and 529 shares for administrative services provided to
these share classes. Administrative services fees are paid monthly and accrued
daily. The investment adviser uses a portion of this fee to compensate third
parties for administrative services provided to the fund. Of the remainder, the
investment adviser does not retain more than 0.05% of the average daily net
assets for each applicable share class. For Class R-5 and R-6 shares, the
administrative services fee is calculated at the annual rate of up to 0.10% and
0.05%, respectively, of the average daily net assets of such class. The
administrative services fee includes compensation for transfer agent and
shareholder services provided to the fund's Class C, F, R and 529 shares. In
addition to
EuroPacific Growth Fund -- Page 25
<PAGE>
making administrative service fee payments to unaffiliated third parties, the
investment adviser also makes payments from the administrative services fee to
American Funds Service Company according to a fee schedule, based principally on
the number of accounts serviced, contained in a Shareholder Services Agreement
between the fund and American Funds Service Company. A portion of the fees paid
to American Funds Service Company for transfer agent services is also paid
directly from the relevant share class.
During the 2008 fiscal year, administrative services fees, gross of any payments
made by the investment adviser, were:
ADMINISTRATIVE SERVICES FEE
--------------------------------------------------------------------------------
CLASS C $ 4,734,000
--------------------------------------------------------------------------------
CLASS F-1 10,985,000
--------------------------------------------------------------------------------
CLASS F-2 --
--------------------------------------------------------------------------------
CLASS 529-A 632,000
--------------------------------------------------------------------------------
CLASS 529-B 105,000
--------------------------------------------------------------------------------
CLASS 529-C 285,000
--------------------------------------------------------------------------------
CLASS 529-E 37,000
--------------------------------------------------------------------------------
CLASS 529-F-1 41,000
--------------------------------------------------------------------------------
CLASS R-1 271,000
--------------------------------------------------------------------------------
CLASS R-2 5,200,000
--------------------------------------------------------------------------------
CLASS R-3 11,893,000
--------------------------------------------------------------------------------
CLASS R-4 15,361,000
--------------------------------------------------------------------------------
CLASS R-5 17,004,000
--------------------------------------------------------------------------------
PRINCIPAL UNDERWRITER AND PLANS OF DISTRIBUTION -- American Funds
Distributors,/(R)/ Inc. (the "Principal Underwriter") is the principal
underwriter of the fund's shares. The Principal Underwriter is located at 333
South Hope Street, Los Angeles, CA 90071; 6455 Irvine Center Drive, Irvine, CA
92618; 3500 Wiseman Boulevard, San Antonio, TX 78251; 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240; and 5300 Robin Hood Road, Norfolk, VA 23513.
The Principal Underwriter receives revenues relating to sales of the fund's
shares, as follows:
. For Class A and 529-A shares, the Principal Underwriter receives
commission revenue consisting of the balance of the Class A and 529-A
sales charge remaining after the allowances by the Principal
Underwriter to investment dealers.
. For Class B and 529-B shares, the Principal Underwriter sells its
rights to the 0.75% distribution-related portion of the 12b-1 fees
paid by the fund, as well as any contingent deferred sales charges, to
a third party. The Principal Underwriter compensates investment
dealers for sales of Class B and 529-B shares out of the proceeds of
this sale and keeps any amounts remaining after this compensation is
paid.
EuroPacific Growth Fund -- Page 26
<PAGE>
. For Class C and 529-C shares, the Principal Underwriter receives any
contingent deferred sales charges that apply during the first year
after purchase.
In addition, the fund reimburses the Principal Underwriter for advancing
immediate service fees to qualified dealers and advisers upon the sale of Class
B, 529-B, C and 529-C shares. The fund also reimburses the Principal Underwriter
for service fees (and, in the case of Class 529-E shares, commissions) paid on a
quarterly basis to qualified dealers and advisers in connection with investments
in Class F-1, 529-F-1, 529-E, R-1, R-2, R-3 and R-4 shares.
Commissions, revenue or service fees retained by the Principal Underwriter after
allowances or compensation to dealers were:
COMMISSIONS, ALLOWANCE OR
REVENUE COMPENSATION
FISCAL YEAR/PERIOD OR FEES RETAINED TO DEALERS
-----------------------------------------------------------------------------------------------------
CLASS A 2008 $16,734,000 $74,355,000
2007 17,489,000 78,038,000
2006 13,754,000 61,703,000
-----------------------------------------------------------------------------------------------------
CLASS B 2008 1,037,000 6,468,000
2007 1,198,000 7,621,000
2006 806,000 6,365,000
-----------------------------------------------------------------------------------------------------
CLASS C 2008 1,448,000 7,771,000
2007 1,812,000 8,436,000
2006 0 7,683,000
-----------------------------------------------------------------------------------------------------
CLASS 529-A 2008 1,003,000 4,647,000
2007 862,000 3,982,000
2006 660,000 3,058,000
-----------------------------------------------------------------------------------------------------
CLASS 529-B 2008 72,000 546,000
2007 68,000 428,000
2006 56,000 324,000
-----------------------------------------------------------------------------------------------------
CLASS 529-C 2008 13,000 694,000
2007 0 597,000
2006 0 432,000
-----------------------------------------------------------------------------------------------------
EuroPacific Growth Fund -- Page 27
<PAGE>
Plans of distribution -- The fund has adopted plans of distribution (the
"Plans") pursuant to rule 12b-1 under the 1940 Act. The Plans permit the fund to
expend amounts to finance any activity primarily intended to result in the sale
of fund shares, provided the fund's board of trustees has approved the category
of expenses for which payment is being made.
Each Plan is specific to a particular share class of the fund. As the fund has
not adopted a Plan for Class F-2, Class R-5 or Class R-6, no 12b-1 fees are paid
from Class F-2, Class R-5 or Class R-6 share assets and the following disclosure
is not applicable to these share classes.
Payments under the Plans may be made for service-related and/or
distribution-related expenses. Service-related expenses include paying service
fees to qualified dealers. Distribution-related expenses include commissions
paid to qualified dealers. The amounts actually paid under the Plans for the
past fiscal year, expressed as a percentage of the fund's average daily net
assets attributable to the applicable share class, are disclosed in the
prospectus under "Fees and expenses of the fund." Further information regarding
the amounts available under each Plan is in the "Plans of Distribution" section
of the prospectus.
Following is a brief description of the Plans:
CLASS A AND 529-A -- For Class A and 529-A shares, up to 0.25% of the
fund's average daily net assets attributable to such shares is reimbursed
to the Principal Underwriter for paying service-related expenses, and the
balance available under the applicable Plan may be paid to the Principal
Underwriter for distribution-related expenses. The fund may annually expend
up to 0.25% for Class A shares and up to 0.50% for Class 529-A shares under
the applicable Plan.
Distribution-related expenses for Class A and 529-A shares include dealer
commissions and wholesaler compensation paid on sales of shares of $1
million or more purchased without a sales charge. Commissions on these "no
load" purchases (which are described in further detail under the "Sales
Charges" section of this statement of additional information) in excess of
the Class A and 529-A Plan limitations and not reimbursed to the Principal
Underwriter during the most recent fiscal quarter are recoverable for five
quarters, provided that the reimbursement of such commissions does not
cause the fund to exceed the annual expense limit. After five quarters,
these commissions are not recoverable. As of March 31, 2008, unreimbursed
expenses which remain subject to reimbursement under the Plan for Class A
shares totaled $1,311,000 or 0.00% of Class A net assets.
EuroPacific Growth Fund -- Page 28
<PAGE>
CLASS B AND 529-B -- The Plans for Class B and 529-B shares provide for
payments to the Principal Underwriter of up to 0.25% of the fund's average
daily net assets attributable to such shares for paying service-related
expenses and 0.75% for distribution-related expenses, which include the
financing of commissions paid to qualified dealers.
OTHER SHARE CLASSES (CLASS C, 529-C, F-1, 529-F-1, 529-E, R-1, R-2, R-3 AND
R-4) -- The Plans for each of the other share classes that have adopted
Plans provide for payments to the Principal Underwriter for paying
service-related and distribution-related expenses of up to the following
amounts of the fund's average daily net assets attributable to such shares:
SERVICE DISTRIBUTIO TOTAL
RELATED N ALLOWABLE
PAYMENTS RELATED UNDER
SHARE CLASS /1/ PAYMENTS/1/ THE PLANS/2/
----------------------------------------------------------------------------------
Class C 0.25% 0.75% 1.00%
-------------------------------------------------------------------------
Class 529-C 0.25 0.75 1.00
-------------------------------------------------------------------------
Class F-1 0.25 -- 0.50
-------------------------------------------------------------------------
Class 529-F-1 0.25 -- 0.50
-------------------------------------------------------------------------
Class 529-E 0.25 0.25 0.75
-------------------------------------------------------------------------
Class R-1 0.25 0.75 1.00
-------------------------------------------------------------------------
Class R-2 0.25 0.50 1.00
-------------------------------------------------------------------------
Class R-3 0.25 0.25 0.75
-------------------------------------------------------------------------
Class R-4 0.25 -- 0.50
----------------------------------------------------------------------------------
1 Amounts in these columns represent the amounts approved by the board of
trustees under the applicable Plan.
2 The fund may annually expend the amounts set forth in this column under
the current Plans with the approval of the board of trustees.
During the 2008 fiscal year, 12b-1 expenses accrued and paid, and if applicable,
unpaid, were:
12B-1 UNPAID LIABILITY
12B-1 EXPENSES OUTSTANDING
------------------------------------------------------------------------------
CLASS A $152,226,000 $9,978,000
------------------------------------------------------------------------------
CLASS B 18,598,000 1,510,000
------------------------------------------------------------------------------
CLASS C 41,216,000 3,529,000
------------------------------------------------------------------------------
CLASS F-1 24,908,000 3,269,000
------------------------------------------------------------------------------
CLASS 529-A 1,380,000 118,000
------------------------------------------------------------------------------
CLASS 529-B 1,041,000 93,000
------------------------------------------------------------------------------
CLASS 529-C 2,978,000 288,000
------------------------------------------------------------------------------
CLASS 529-E 213,000 19,000
------------------------------------------------------------------------------
CLASS 529-F-1 0 0
------------------------------------------------------------------------------
CLASS R-1 1,700,000 169,000
------------------------------------------------------------------------------
CLASS R-2 9,517,000 814,000
------------------------------------------------------------------------------
CLASS R-3 37,703,000 3,250,000
------------------------------------------------------------------------------
CLASS R-4 26,246,000 2,841,000
------------------------------------------------------------------------------
EuroPacific Growth Fund -- Page 29
<PAGE>
Approval of the Plans -- As required by rule 12b-1 and the 1940 Act, the Plans
(together with the Principal Underwriting Agreement) have been approved by the
full board of trustees and separately by a majority of the independent trustees
of the fund who have no direct or indirect financial interest in the operation
of the Plans or the Principal Underwriting Agreement. In addition, the selection
and nomination of independent trustees of the fund are committed to the
discretion of the independent trustees during the existence of the Plans.
Potential benefits of the Plans to the fund include quality shareholder
services, savings to the fund in transfer agency costs, and benefits to the
investment process from growth or stability of assets. The Plans may not be
amended to materially increase the amount spent for distribution without
shareholder approval. Plan expenses are reviewed quarterly by the board of
trustees and the Plans must be renewed annually by the board of trustees.
FEE TO VIRGINIA COLLEGE SAVINGS PLAN -- With respect to Class 529 Shares, as
compensation for its oversight and administration, Virginia College Savings Plan
receives a quarterly fee accrued daily and calculated at the annual rate of
0.10% on the first $30 billion of the net assets invested in Class 529 Shares of
the American Funds, 0.09% on net assets between $30 billion and $60 billion,
0.08% on net assets between $60 billion and $90 billion, 0.07% on net assets
between $90 billion and $120 billion, and 0.06% on net assets between $120
billion and $150 billion. The fee for any given calendar quarter is accrued and
calculated on the basis of average net assets of Class 529 Shares of the
American Funds for the last month of the prior calendar quarter.
OTHER COMPENSATION TO DEALERS -- As of October 2008, the top dealers (or their
affiliates) that American Funds Distributors anticipates will receive additional
compensation (as described in the prospectus) include:
AIG Advisors Group
Advantage Capital Corporation
AIG Financial Advisors, Inc.
American General Securities Incorporated
FSC Securities Corporation
Royal Alliance Associates, Inc.
AXA Advisors, LLC
Cadaret, Grant & Co., Inc.
Cambridge Investment Research, Inc.
Commonwealth Financial Network
Cuna Brokerage Services, Inc.
EuroPacific Growth Fund -- Page 30
<PAGE>
Deutsche Bank Securities Inc.
Edward Jones
Genworth Financial Securities Corporation
Hefren-Tillotson, Inc.
HTK / Janney Montgomery Group
Hornor, Townsend & Kent, Inc.
Janney Montgomery Scott LLC
ING Advisors Network Inc.
Bancnorth Investment Group, Inc.
Financial Network Investment Corporation
Guaranty Brokerage Services, Inc.
ING Financial Partners, Inc.
Multi-Financial Securities Corporation
Primevest Financial Services, Inc.
Intersecurities / Transamerica
InterSecurities, Inc.
Transamerica Financial Advisors, Inc.
JJB Hilliard/PNC Bank
J.J.B. Hilliard, W.L. Lyons, Inc.
PNC Bank, National Association
PNC Investments LLC
Lincoln Financial Advisors Corporation
LPL Group
Associated Securities Corp.
LPL Financial Corporation
Mutual Service Corporation
Uvest Investment Services
Waterstone Financial Group, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Metlife Enterprises
Metlife Securities Inc.
New England Securities
Tower Square Securities
Walnut Street Securities, Inc.
MML Investors Services, Inc.
Morgan Keegan & Company, Inc.
Morgan Stanley & Co., Incorporated
National Planning Holdings Inc.
Invest Financial Corporation
Investment Centers of America, Inc.
National Planning Corporation
SII Investments, Inc.
NFP Securities, Inc.
Northwestern Mutual Investment Services, LLC
Park Avenue Securities LLC
Princor Financial Services Corporation
Raymond James Group
Raymond James & Associates, Inc.
Raymond James Financial Services Inc.
RBC Dain Rauscher Inc.
EuroPacific Growth Fund -- Page 31
<PAGE>
Robert W. Baird & Co. Incorporated
Securian / C.R.I.
CRI Securities, LLC
Securian Financial Services, Inc.
Smith Barney
Legg Mason
Primerica Financial Services
U.S. Bancorp Investments, Inc.
UBS Financial Services Inc.
Wachovia Group
A. G. Edwards, a Division of Wachovia Securities, LLC
First Clearing LLC
Wachovia Securities Financial Network, LLC
Wachovia Securities Investment Services Group
Wachovia Securities Latin American Channel
Wachovia Securities Private Client Group
Wells Fargo Investments, LLC
EXECUTION OF PORTFOLIO TRANSACTIONS
The investment adviser places orders with broker-dealers for the fund's
portfolio transactions. Purchases and sales of equity securities on a securities
exchange or an over-the-counter market are effected through broker-dealers who
receive commissions for their services. Generally, commissions relating to
securities traded on foreign exchanges will be higher than commissions relating
to securities traded on U.S. exchanges and may not be subject to negotiation.
Equity securities may also be purchased from underwriters at prices that include
underwriting fees. Purchases and sales of fixed-income securities are generally
made with an issuer or a primary market-maker acting as principal with no stated
brokerage commission. The price paid to an underwriter for fixed-income
securities includes underwriting fees. Prices for fixed-income securities in
secondary trades usually include undisclosed compensation to the market-maker
reflecting the spread between the bid and ask prices for the securities.
In selecting broker-dealers, the investment adviser strives to obtain "best
execution" (the most favorable total price reasonably attainable under the
circumstances) for the fund's portfolio transactions, taking into account a
variety of factors. These factors include the size and type of transaction, the
nature and character of the markets for the security to be purchased or sold,
the cost, quality and reliability of the executions and the broker-dealer's
ability to offer liquidity and anonymity. The investment adviser considers these
factors, which involve qualitative judgments, when selecting broker-dealers and
execution venues for fund portfolio transactions. The investment adviser views
best execution as a process that should be evaluated over time as part of an
overall relationship with particular broker-dealer firms rather than on a
trade-by-trade basis. The fund does not consider the investment adviser as
having an obligation to obtain the lowest commission rate available for a
portfolio transaction to the exclusion of price, service and qualitative
considerations.
The investment adviser may execute portfolio transactions with broker-dealers
who provide certain brokerage and/or investment research services to it, but
only when in the investment adviser's judgment the broker-dealer is capable of
providing best execution for that transaction. The receipt of these services
permits the investment adviser to supplement its own research and analysis and
makes available the views of, and information from, individuals and the research
EuroPacific Growth Fund -- Page 32
<PAGE>
staffs of other firms. Such views and information may be provided in the form of
written reports, telephone contacts and meetings with securities analysts. These
services may include, among other things, reports and other communications with
respect to individual companies, industries, countries and regions, economic,
political and legal developments, as well as scheduling meetings with corporate
executives and seminars and conferences related to relevant subject matters. The
investment adviser considers these services to be supplemental to its own
internal research efforts and therefore the receipt of investment research from
broker-dealers does not tend to reduce the expenses involved in the investment
adviser's research efforts. If broker-dealers were to discontinue providing such
services it is unlikely the investment adviser would attempt to replicate them
on its own, in part because they would then no longer provide an independent,
supplemental viewpoint. Nonetheless, if it were to attempt to do so, the
investment adviser would incur substantial additional costs. Research services
that the investment adviser receives from broker-dealers may be used by the
investment adviser in servicing the fund and other funds and accounts that it
advises; however, not all such services will necessarily benefit the fund.
The investment adviser may pay commissions in excess of what other
broker-dealers might have charged - including on an execution-only basis - for
certain portfolio transactions in recognition of brokerage and/or investment
research services provided by a broker-dealer. In this regard, the investment
adviser has adopted a brokerage allocation procedure consistent with the
requirements of Section 28(e) of the U.S. Securities Exchange Act of 1934.
Section 28(e) permits an investment adviser to cause an account to pay a higher
commission to a broker-dealer that provides certain brokerage and/or investment
research services to the investment adviser, if the investment adviser makes a
good faith determination that such commissions are reasonable in relation to the
value of the services provided by such broker-dealer to the investment adviser
in terms of that particular transaction or the investment adviser's overall
responsibility to the fund and other accounts that it advises. Certain brokerage
and/or investment research services may not necessarily benefit all accounts
paying commissions to each such broker-dealer; therefore, the investment adviser
assesses the reasonableness of commissions in light of the total brokerage and
investment research services provided by each particular broker-dealer.
In accordance with its internal brokerage allocation procedure, each equity
investment division of the investment adviser periodically assesses the
brokerage and investment research services provided by each broker-dealer from
which it receives such services. Using its judgment, each equity investment
division of the investment adviser then creates lists with suggested levels of
commissions for particular broker-dealers and provides those lists to its
trading desks. Neither the investment adviser nor the fund incurs any obligation
to any broker-dealer to pay for research by generating trading commissions. The
actual level of business received by any broker-dealer may be less than the
suggested level of commissions and can, and often does, exceed the suggested
level in the normal course of business. As part of its ongoing relationships
with broker-dealers, the investment adviser routinely meets with firms,
typically at the firm's request, to discuss the level and quality of the
brokerage and research services provided, as well as the perceived value and
cost of such services. In valuing the brokerage and investment research services
the investment adviser receives from broker-dealers in connection with its good
faith determination of reasonableness, the investment adviser does not attribute
a dollar value to such services, but rather takes various factors into
consideration, including the quantity, quality and usefulness of the services to
the investment adviser.
The investment adviser seeks, on an ongoing basis, to determine what the
reasonable levels of commission rates are in the marketplace. The investment
adviser takes various considerations
EuroPacific Growth Fund -- Page 33
<PAGE>
into account when evaluating such reasonableness, including, (a) rates quoted by
broker-dealers, (b) the size of a particular transaction in terms of the number
of shares and dollar amount, (c) the complexity of a particular transaction, (d)
the nature and character of the markets on which a particular trade takes place,
(e) the ability of a broker-dealer to provide anonymity while executing trades,
(f) the ability of a broker-dealer to execute large trades while minimizing
market impact, (g) the extent to which a broker-dealer has put its own capital
at risk, (h) the level and type of business done with a particular broker-dealer
over a period of time, (i) historical commission rates, and (j) commission rates
that other institutional investors are paying.
When executing portfolio transactions in the same equity security for the funds
and accounts, or portions of funds and accounts, over which the investment
adviser, through its equity investment divisions, has investment discretion,
each of the investment divisions will normally aggregate its respective
purchases or sales and execute them as part of the same transaction or series of
transactions. When executing portfolio transactions in the same fixed-income
security for the fund and the other funds or accounts over which it or one of
its affiliated companies has investment discretion, the investment adviser will
normally aggregate such purchases or sales and execute them as part of the same
transaction or series of transactions. The objective of aggregating purchases
and sales of a security is to allocate executions in an equitable manner among
the funds and other accounts that have concurrently authorized a transaction in
such security.
The investment adviser may place orders for the fund's portfolio transactions
with broker-dealers who have sold shares of the funds managed by the investment
adviser or its affiliated companies; however, it does not consider whether a
broker-dealer has sold shares of the funds managed by the investment adviser or
its affiliated companies when placing any such orders for the fund's portfolio
transactions.
Brokerage commissions paid on portfolio transactions for the fiscal years ended
March 31, 2008, 2007 and 2006 amounted to $104,603,000, $81,252,000 and
$74,611,000, respectively.
The fund is required to disclose information regarding investments in the
securities of its "regular" broker-dealers (or parent companies of its regular
broker-dealers) that derive more than 15% of their revenue from broker-dealer,
underwriter or investment adviser activities. A regular broker-dealer is (a) one
of the 10 broker-dealers that received from the fund the largest amount of
brokerage commissions by participating, directly or indirectly, in the fund's
portfolio transactions during the fund's most recent fiscal year; (b) one of the
10 broker-dealers that engaged as principal in the largest dollar amount of
portfolio transactions of the fund during the fund's most recent fiscal year; or
(c) one of the 10 broker-dealers that sold the largest amount of securities of
the fund during the fund's most recent fiscal year.
At the end of the fund's most recent fiscal year, the fund's regular
broker-dealers included Credit Suisse Group, UBS Financial Services Inc. and
J.P. Morgan Securities Inc. As of the fund's most recent fiscal year-end, the
fund held equity securities of Credit Suisse Group in the amount of $50,894,000
and UBS AG in the amount of $330,584,000 and debt securities of J.P. Morgan
Chase & Co. in the amount of $52,830,000.
DISCLOSURE OF PORTFOLIO HOLDINGS
The fund's investment adviser, on behalf of the fund, has adopted policies and
procedures with respect to the disclosure of information about fund portfolio
securities. These policies and
EuroPacific Growth Fund -- Page 34
<PAGE>
procedures have been reviewed by the fund's board of trustees and compliance
will be periodically assessed by the board in connection with reporting from the
fund's Chief Compliance Officer.
Under these policies and procedures, the fund's complete list of portfolio
holdings available for public disclosure, dated as of the end of each calendar
quarter, is permitted to be posted on the American Funds website no earlier than
the tenth day after such calendar quarter. In practice, the public portfolio
typically is posted on the website approximately 45 days after the end of the
calendar quarter. In addition, the fund's list of top 10 equity portfolio
holdings measured by percentage of net assets invested, dated as of the end of
each calendar month, is permitted to be posted on the American Funds website no
earlier than the tenth day after such month. Such portfolio holdings information
may then be disclosed to any person pursuant to an ongoing arrangement to
disclose portfolio holdings information to such person no earlier than one day
after the day on which the information is posted on the American Funds website.
The fund's custodian, outside counsel and auditor, each of which requires
portfolio holdings information for legitimate business and fund oversight
purposes, may receive the information earlier.
Affiliated persons of the fund, including officers of the fund and employees of
the investment adviser and its affiliates, who receive portfolio holdings
information are subject to restrictions and limitations on the use and handling
of such information pursuant to applicable codes of ethics, including
requirements not to trade in securities based on confidential and proprietary
investment information, to maintain the confidentiality of such information, and
to preclear securities trades and report securities transactions activity, as
applicable. For more information on these restrictions and limitations, please
see the "Code of Ethics" section in this statement of additional information and
the Code of Ethics. Third party service providers of the fund, as described in
this statement of additional information, receiving such information are subject
to confidentiality obligations. When portfolio holdings information is disclosed
other than through the American Funds website to persons not affiliated with the
fund (which, as described above, would typically occur no earlier than one day
after the day on which the information is posted on the American Funds website),
such persons will be bound by agreements (including confidentiality agreements)
or fiduciary obligations that restrict and limit their use of the information to
legitimate business uses only. Neither the fund nor its investment adviser or
any affiliate thereof receives compensation or other consideration in connection
with the disclosure of information about portfolio securities.
Subject to board policies, the authority to disclose a fund's portfolio
holdings, and to establish policies with respect to such disclosure, resides
with the appropriate investment-related committees of the fund's investment
adviser. In exercising their authority, the committees determine whether
disclosure of information about the fund's portfolio securities is appropriate
and in the best interest of fund shareholders. The investment adviser has
implemented policies and procedures to address conflicts of interest that may
arise from the disclosure of fund holdings. For example, the investment
adviser's code of ethics specifically requires, among other things, the
safeguarding of information about fund holdings and contains prohibitions
designed to prevent the personal use of confidential, proprietary investment
information in a way that would conflict with fund transactions. In addition,
the investment adviser believes that its current policy of not selling portfolio
holdings information and not disclosing such information to unaffiliated third
parties until such holdings have been made public on the American Funds website
(other than to certain fund service providers for legitimate business and fund
oversight purposes) helps reduce potential conflicts of interest between fund
shareholders and the investment adviser and its affiliates.
EuroPacific Growth Fund -- Page 35
<PAGE>
PRICE OF SHARES
Shares are purchased at the offering price or sold at the net asset value price
next determined after the purchase or sell order is received and accepted by the
fund or the Transfer Agent; the offering or net asset value price is effective
for orders received prior to the time of determination of the net asset value
and, in the case of orders placed with dealers or their authorized designees,
accepted by the Principal Underwriter, the Transfer Agent, a dealer or any of
their designees. In the case of orders sent directly to the fund or the Transfer
Agent, an investment dealer should be indicated. The dealer is responsible for
promptly transmitting purchase and sell orders to the Principal Underwriter.
Orders received by the investment dealer or authorized designee, the Transfer
Agent or the fund after the time of the determination of the net asset value
will be entered at the next calculated offering price. Note that investment
dealers or other intermediaries may have their own rules about share
transactions and may have earlier cut-off times than those of the fund. For more
information about how to purchase through your intermediary, contact your
intermediary directly.
Prices that appear in the newspaper do not always indicate prices at which you
will be purchasing and redeeming shares of the fund, since such prices generally
reflect the previous day's closing price, while purchases and redemptions are
made at the next calculated price. The price you pay for shares, the offering
price, is based on the net asset value per share, which is calculated once daily
as of approximately 4 p.m. New York time, which is the normal close of trading
on the New York Stock Exchange, each day the Exchange is open. If, for example,
the Exchange closes at 1 p.m., the fund's share price would still be determined
as of 4 p.m. New York time. The New York Stock Exchange is currently closed on
weekends and on the following holidays: New Year's Day; Martin Luther King, Jr.
Day; Presidents' Day; Good Friday; Memorial Day; Independence Day; Labor Day;
Thanksgiving; and Christmas Day. Each share class of the fund has a separately
calculated net asset value (and share price).
All portfolio securities of funds managed by Capital Research and Management
Company (other than money market funds) are valued, and the net asset values per
share for each share class are determined, as indicated below. The fund follows
standard industry practice by typically reflecting changes in its holdings of
portfolio securities on the first business day following a portfolio trade.
1. Equity securities, including depositary receipts, are valued at the
official closing price of, or the last reported sale price on, the exchange or
market on which such securities are traded, as of the close of business on the
day the securities are being valued or, lacking any sales, at the last available
bid price. Prices for each security are taken from the principal exchange or
market in which the security trades. Fixed-income securities are valued at
prices obtained from one or more independent pricing vendors, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued in good faith at the mean
quoted bid and asked prices that are reasonably and timely available (or
bid prices, if asked prices are not available) or at prices for securities
of comparable maturity, quality and type. The pricing vendors base
bond prices on, among other things, valuation matrices which may incorporate
dealer-supplied valuations, electronic data processing techniques and an
evaluation of the yield curve as of approximately 3 p.m. New York time. The
fund's investment adviser performs certain checks on these prices prior to
calculation of the fund's net asset value.
Securities with both fixed-income and equity characteristics (e.g., convertible
bonds, preferred stocks, units comprised of more than one type of security,
etc.), or equity securities traded prin-
EuroPacific Growth Fund -- Page 36
<PAGE>
cipally among fixed-income dealers, are valued in the manner described above for
either equity or fixed-income securities, depending on which method is deemed
most appropriate by the investment adviser.
Securities with original maturities of one year or less having 60 days or less
to maturity are amortized to maturity based on their cost if acquired within 60
days of maturity, or if already held on the 60th day, based on the value
determined on the 61st day. Forward currency contracts are valued at the mean of
representative quoted bid and asked prices.
Assets or liabilities initially expressed in terms of currencies other than U.S.
dollars are translated prior to the next determination of the net asset value of
the fund's shares into U.S. dollars at the prevailing market rates.
Securities and assets for which market quotations are not readily available or
are considered unreliable are valued at fair value as determined in good faith
under policies approved by the fund's board. Subject to board oversight, the
fund's board has delegated the obligation to make fair valuation determinations
to a valuation committee established by the fund's investment adviser. The board
receives regular reports describing fair-valued securities and the valuation
methods used.
The valuation committee has adopted guidelines and procedures (consistent with
SEC rules and guidance) to consider certain relevant principles and factors
when making all fair value determinations. As a general principle,
securities lacking readily available market quotations, or that have quotations
that are considered unreliable by the investment adviser, are valued in good
faith by the valuation committee based upon what the fund might reasonably
expect to receive upon their current sale. Fair valuators and valuations of
investments that are not actively trading involve judgment and may differ
materially from valuations that would have been used had greater market activity
occurred. The valuation committee considers relevant indications of value
that are reasonably and timely available to it in determining the fair value
to be assigned to a particular security, such as the type and cost of the
security, contractual or legal restrictions on resale of the security, relevant
financial or business developments of the issuer, actively traded similar or
related securities, conversion or exchange rights on the security, related
corporate actions, significant events occurring after the close of trading in
the security and changes in overall market conditions. The valuation committee
employs additional fair value procedures to address issues related to equity
holdings of applicable fund portfolios outside the United States. Securities
owned by these funds trade in markets that open and close at different times,
reflecting time zone differences. If significant events occur after the close
of a market (and before these fund's net asset values are next determined)
which affect the value of portfolio securities, appropriate
adjustments from closing market prices may be made to reflect these events.
Events of this type could include, for example, earthquakes and other natural
disasters or significant price changes in other markets (e.g., U.S. stock
markets).
2. Each class of shares represents interests in the same portfolio of
investments and is identical in all respects to each other class, except for
differences relating to distribution, service and other charges and expenses,
certain voting rights, differences relating to eligible investors, the
designation of each class of shares, conversion features and exchange
privileges. Expenses attributable to the fund, but not to a particular class of
shares, are borne by each class pro rata based on relative aggregate net assets
of the classes. Expenses directly attributable to a class of shares are borne by
that class of shares. Liabilities, including accruals of taxes and other expense
items attributable to particular share classes, are deducted from total assets
attributable to such share classes.
EuroPacific Growth Fund -- Page 37
<PAGE>
3. Net assets so obtained for each share class are then divided by the total
number of shares outstanding of that share class, and the result, rounded to the
nearest cent, is the net asset value per share for that share class.
TAXES AND DISTRIBUTIONS
FUND TAXATION -- The fund has elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code (the "Code"). A
regulated investment company qualifying under Subchapter M of the Code is
required to distribute to its shareholders at least 90% of its investment
company taxable income (including the excess of net short-term capital gain over
net long-term capital losses) and generally is not subject to federal income tax
to the extent that it distributes annually 100% of its investment company
taxable income and net realized capital gains in the manner required under the
Code. The fund intends to distribute annually all of its investment company
taxable income and net realized capital gains and therefore does not expect to
pay federal income tax, although in certain circumstances the fund may determine
that it is in the interest of shareholders to distribute less than that amount.
To be treated as a regulated investment company under Subchapter M of the Code,
the fund must also (a) derive at least 90% of its gross income from dividends,
interest, payments with respect to securities loans, net income from certain
publicly traded partnerships and gains from the sale or other disposition of
securities or foreign currencies, or other income (including, but not limited
to, gains from options, futures or forward contracts) derived with respect to
the business of investing in such securities or currencies, and (b) diversify
its holdings so that, at the end of each fiscal quarter, (i) at least 50% of the
market value of the fund's assets is represented by cash, U.S. government
securities and securities of other regulated investment companies, and other
securities (for purposes of this calculation, generally limited in respect of
any one issuer, to an amount not greater than 5% of the market value of the
fund's assets and 10% of the outstanding voting securities of such issuer) and
(ii) not more than 25% of the value of its assets is invested in the securities
of any one issuer (other than U.S. government securities or the securities of
other regulated investment companies), two or more issuers which the fund
controls and which are determined to be engaged in the same or similar trades or
businesses or the securities of certain publicly traded partnerships.
Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (a) 98% of ordinary income (generally net investment income)
for the calendar year, (b) 98% of capital gain (both long-term and short-term)
for the one-year period ending on October 31 (as though the one-year period
ending on October 31 were the regulated investment company's taxable year) and
(c) the sum of any untaxed, undistributed net investment income and net capital
gains of the regulated investment company for prior periods. The term
"distributed amount" generally means the sum of (a) amounts actually distributed
by the fund from its current year's ordinary income and capital gain net income
and (b) any amount on which the fund pays income tax during the periods
described above. Although the fund intends to distribute its net investment
income and net capital gains so as to avoid excise tax liability, the fund may
determine that it is in the interest of shareholders to distribute a lesser
amount.
EuroPacific Growth Fund -- Page 38
<PAGE>
The following information may not apply to you if you hold fund shares in a
tax-deferred account, such as a retirement plan or education savings account.
Please see your tax adviser for more information.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS -- Dividends and capital gain
distributions on fund shares will be reinvested in shares of the fund of the
same class, unless shareholders indicate in writing that they wish to receive
them in cash or in shares of the same class of other American Funds, as provided
in the prospectus. Dividend and capital gain distributions by 529 share classes
will be automatically reinvested.
Distributions of investment company taxable income and net realized capital
gains to shareholders will be taxable whether received in shares or in cash,
unless such shareholders are exempt from taxation. Shareholders electing to
receive distributions in the form of additional shares will have a cost basis
for federal income tax purposes in each share so received equal to the net asset
value of that share on the reinvestment date. Dividends and capital gain
distributions by the fund to a tax-deferred retirement plan account are not
taxable currently.
DIVIDENDS -- The fund intends to follow the practice of distributing
substantially all of its investment company taxable income. Investment
company taxable income generally includes dividends, interest, net
short-term capital gains in excess of net long-term capital losses, and
certain foreign currency gains, if any, less expenses and certain foreign
currency losses. To the extent the fund invests in stock of domestic and
certain foreign corporations and meets the applicable holding period
requirement, it may receive "qualified dividends". The fund will designate
the amount of "qualified dividends" to its shareholders in a notice sent
within 60 days of the close of its fiscal year and will report "qualified
dividends" to shareholders on Form 1099-DIV.
Under the Code, gains or losses attributable to fluctuations in exchange
rates that occur between the time the fund accrues receivables or
liabilities denominated in a foreign currency and the time the fund
actually collects such receivables, or pays such liabilities, generally are
treated as ordinary income or ordinary loss. Similarly, on disposition of
debt securities denominated in a foreign currency and on disposition of
certain futures contracts, forward contracts and options, gains or losses
attributable to fluctuations in the value of foreign currency between the
date of acquisition of the security or contract and the date of disposition
are also treated as ordinary gain or loss. These gains or losses, referred
to under the Code as Section 988 gains or losses, may increase or decrease
the amount of the fund's investment company taxable income to be
distributed to its shareholders as ordinary income.
If the fund invests in stock of certain passive foreign investment
companies, the fund may be subject to U.S. federal income taxation on a
portion of any "excess distribution" with respect to, or gain from the
disposition of, such stock. The tax would be determined by allocating such
distribution or gain ratably to each day of the fund's holding period for
the stock. The distribution or gain so allocated to any taxable year of the
fund, other than the taxable year of the excess distribution or
disposition, would be taxed to the fund at the highest ordinary income rate
in effect for such year, and the tax would be further increased by an
interest charge to reflect the value of the tax deferral deemed to have
resulted from the ownership of the foreign company's stock. Any amount of
distribution or gain allocated to the taxable year of the distribution or
disposition would be included in
EuroPacific Growth Fund -- Page 39
<PAGE>
the fund's investment company taxable income and, accordingly, would not be
taxable to the fund to the extent distributed by the fund as a dividend to
its shareholders.
To avoid such tax and interest, the fund intends to elect to treat these
securities as sold on the last day of its fiscal year and recognize any
gains for tax purposes at that time. Under this election, deductions for
losses are allowable only to the extent of any prior recognized gains, and
both gains and losses will be treated as ordinary income or loss. The fund
will be required to distribute any resulting income, even though it has not
sold the security and received cash to pay such distributions. Upon
disposition of these securities, any gain recognized is treated as ordinary
income and loss is treated as ordinary loss to the extent of any prior
recognized gain.
A portion of the difference between the issue price of zero coupon
securities and their face value (original issue discount) is considered to
be income to the fund each year, even though the fund will not receive cash
interest payments from these securities. This original issue discount
(imputed income) will comprise a part of the investment company taxable
income of the fund that must be distributed to shareholders in order to
maintain the qualification of the fund as a regulated investment company
and to avoid federal income taxation at the level of the fund.
The price of a bond purchased after its original issuance may reflect
market discount which, depending on the particular circumstances, may
affect the tax character and amount of income required to be recognized by
a fund holding the bond. In determining whether a bond is purchased with
market discount, certain de minimis rules apply.
Dividend and interest income received by the fund from sources outside the
United States may be subject to withholding and other taxes imposed by such
foreign jurisdictions. Tax conventions between certain countries and the
United States, however, may reduce or eliminate these foreign taxes. Some
foreign countries impose taxes on capital gains with respect to investments
by foreign investors.
CAPITAL GAIN DISTRIBUTIONS -- The fund also intends to follow the practice
of distributing the entire excess of net realized long-term capital gains
over net realized short-term capital losses. Net capital gains for a fiscal
year are computed by taking into account any capital loss carryforward of
the fund.
If any net long-term capital gains in excess of net short-term capital
losses are retained by the fund for reinvestment, requiring federal income
taxes to be paid thereon by the fund, the fund intends to elect to treat
such capital gains as having been distributed to shareholders. As a result,
each shareholder will report such capital gains as long-term capital gains
taxable to individual shareholders at a maximum 15% capital gains rate,
will be able to claim a pro rata share of federal income taxes paid by the
fund on such gains as a credit against personal federal income tax
liability, and will be entitled to increase the adjusted tax basis on fund
shares by the difference between a pro rata share of the retained gains and
such shareholder's related tax credit.
SHAREHOLDER TAXATION -- In January of each year, individual shareholders holding
fund shares in taxable accounts will receive a statement of the federal income
tax status of all distributions. Shareholders of the fund also may be subject to
state and local taxes on distributions received from the fund.
EuroPacific Growth Fund -- Page 40
<PAGE>
DIVIDENDS -- Fund dividends are taxable to shareholders as ordinary income.
All or a portion of a fund's dividend distribution may be a "qualified
dividend." If the fund meets the applicable holding period requirement, it
will distribute dividends derived from qualified corporation dividends to
shareholders as qualified dividends. Interest income from bonds and money
market instruments and nonqualified foreign dividends will be distributed
to shareholders as nonqualified fund dividends. The fund will report on
Form 1099-DIV the amount of each shareholder's dividend that may be treated
as a qualified dividend. If a shareholder other than a corporation meets
the requisite holding period requirement, qualified dividends are taxable
at a maximum rate of 15%.
CAPITAL GAINS -- Distributions of the excess of net long-term capital gains
over net short-term capital losses that the fund properly designates as
"capital gain dividends" generally will be taxable as long-term capital
gain. Regardless of the length of time the shares of the fund have been
held by a shareholder, a capital gain distribution by the fund is subject
to a maximum tax rate of 15%. Any loss realized upon the redemption of
shares held at the time of redemption for six months or less from the date
of their purchase will be treated as a long-term capital loss to the extent
of any amounts treated as distributions of long-term capital gains during
such six-month period.
Distributions by the fund result in a reduction in the net asset value of the
fund's shares. Investors should consider the tax implications of buying shares
just prior to a distribution. The price of shares purchased at that time
includes the amount of the forthcoming distribution. Those purchasing just prior
to a distribution will subsequently receive a partial return of their investment
capital upon payment of the distribution, which will be taxable to them.
The fund may make the election permitted under Section 853 of the Code so that
shareholders may (subject to limitations) be able to claim a credit or deduction
on their federal income tax returns for, and will be required to treat as part
of the amounts distributed to them, their pro rata portion of qualified taxes
paid by the fund to foreign countries (such taxes relate primarily to investment
income). The fund may make an election under Section 853 of the Code, provided
that more than 50% of the value of the total assets of the fund at the close of
the taxable year consists of securities of foreign corporations. The foreign tax
credit available to shareholders is subject to certain limitations imposed by
the Code.
Redemptions of shares, including exchanges for shares of other American Funds,
may result in federal, state and local tax consequences (gain or loss) to the
shareholder.
If a shareholder exchanges or otherwise disposes of shares of the fund within 90
days of having acquired such shares, and if, as a result of having acquired
those shares, the shareholder subsequently pays a reduced sales charge for
shares of the fund, or of a different fund, the sales charge previously incurred
in acquiring the fund's shares will not be taken into account (to the extent
such previous sales charges do not exceed the reduction in sales charges) for
the purposes of determining the amount of gain or loss on the exchange, but will
be treated as having been incurred in the acquisition of such other fund(s).
Any loss realized on a redemption or exchange of shares of the fund will be
disallowed to the extent substantially identical shares are reacquired within
the 61-day period beginning 30 days before and ending 30 days after the shares
are disposed of. Any loss disallowed under this rule will be added to the
shareholder's tax basis in the new shares purchased.
EuroPacific Growth Fund -- Page 41
<PAGE>
The fund will be required to report to the IRS all distributions of investment
company taxable income and capital gains as well as gross proceeds from the
redemption or exchange of fund shares, except in the case of certain exempt
shareholders. Under the backup withholding provisions of Section 3406 of the
Code, distributions of investment company taxable income and capital gains and
proceeds from the redemption or exchange of a regulated investment company may
be subject to backup withholding of federal income tax in the case of non-exempt
U.S. shareholders who fail to furnish the investment company with their taxpayer
identification numbers and with required certifications regarding their status
under the federal income tax law. Withholding may also be required if the fund
is notified by the IRS or a broker that the taxpayer identification number
furnished by the shareholder is incorrect or that the shareholder has previously
failed to report interest or dividend income. If the withholding provisions are
applicable, any such distributions and proceeds, whether taken in cash or
reinvested in additional shares, will be reduced by the amounts required to be
withheld.
The foregoing discussion of U.S. federal income tax law relates solely to the
application of that law to U.S. persons (i.e., U.S. citizens and residents and
U.S. corporations, partnerships, trusts and estates). Each shareholder who is
not a U.S. person should consider the U.S. and foreign tax consequences of
ownership of shares of the fund, including the possibility that such a
shareholder may be subject to a U.S. withholding tax at a rate of 30% (or a
lower rate under an applicable income tax treaty) on dividend income received by
the shareholder.
Shareholders should consult their tax advisers about the application of federal,
state and local tax law in light of their particular situation.
EuroPacific Growth Fund -- Page 42
<PAGE>
UNLESS OTHERWISE NOTED, ALL REFERENCES IN THE FOLLOWING PAGES TO CLASS A, B, C
OR F-1 SHARES ALSO REFER TO THE CORRESPONDING CLASS 529-A, 529-B, 529-C OR
529-F-1 SHARES. CLASS 529 SHAREHOLDERS SHOULD ALSO REFER TO THE APPLICABLE
PROGRAM DESCRIPTION FOR INFORMATION ON POLICIES AND SERVICES SPECIFICALLY
RELATING TO THESE ACCOUNTS. SHAREHOLDERS HOLDING SHARES THROUGH AN ELIGIBLE
RETIREMENT PLAN SHOULD CONTACT THEIR PLAN'S ADMINISTRATOR OR RECORDKEEPER FOR
INFORMATION REGARDING PURCHASES, SALES AND EXCHANGES.
PURCHASE AND EXCHANGE OF SHARES
PURCHASES BY INDIVIDUALS -- As described in the prospectus, you may generally
open an account and purchase fund shares by contacting a financial adviser or
investment dealer authorized to sell the fund's shares. You may make investments
by any of the following means:
CONTACTING YOUR FINANCIAL ADVISER -- Deliver or mail a check to your
financial adviser.
BY MAIL -- For initial investments, you may mail a check, made payable to
the fund, directly to the address indicated on the account application.
Please indicate an investment dealer on the account application. You may
make additional investments by filling out the "Account Additions" form at
the bottom of a recent account statement and mailing the form, along with a
check made payable to the fund, using the envelope provided with your
account statement.
The amount of time it takes for us to receive regular U.S. postal mail may
vary and there is no assurance that we will receive such mail on the day
you expect. Mailing addresses for regular U.S. postal mail can be found in
the prospectus. To send investments or correspondence to us via overnight
mail or courier service, use either of the following addresses:
American Funds
8332 Woodfield Crossing Blvd.
Indianapolis, IN 46240-2482
American Funds
5300 Robin Hood Rd.
Norfolk, VA 23513-2407
BY TELEPHONE -- Using the American FundsLine. Please see the "Shareholder
account services and privileges" section of this statement of additional
information for more information regarding this service.
BY INTERNET -- Using americanfunds.com. Please see the "Shareholder account
services and privileges" section of this statement of additional
information for more information regarding this service.
BY WIRE -- If you are making a wire transfer, instruct your bank to wire
funds to:
Wells Fargo Bank
ABA Routing No. 121000248
Account No. 4600-076178
EuroPacific Growth Fund -- Page 43
<PAGE>
Your bank should include the following information when wiring funds:
For credit to the account of:
American Funds Service Company
(fund's name)
For further credit to:
(shareholder's fund account number)
(shareholder's name)
You may contact American Funds Service Company at 800/421-0180 if you have
questions about making wire transfers.
OTHER PURCHASE INFORMATION -- The Principal Underwriter will not knowingly sell
shares of the fund directly or indirectly to any person or entity, where, after
the sale, such person or entity would own beneficially directly or indirectly
more than 4.5% of the outstanding shares of the fund without the consent of a
majority of the fund's board.
Class 529 shares may be purchased only through CollegeAmerica by investors
establishing qualified higher education savings accounts. Class 529-E shares may
be purchased only by investors participating in CollegeAmerica through an
eligible employer plan. Class R-5 shares are also available to clients of the
Personal Investment Management group of Capital Guardian Trust Company who do
not have an intermediary associated with their accounts. In addition, the
American Funds state tax-exempt funds are qualified for sale only in certain
jurisdictions, and tax-exempt funds in general should not serve as retirement
plan investments. The fund and the Principal Underwriter reserve the right to
reject any purchase order.
Class R-5 and R-6 shares may be made available to certain charitable foundations
organized and maintained by The Capital Group Companies, Inc. or its affiliates.
Beginning May 1, 2009, cash investments received without investment instructions
will be invested in Class A shares of the American Funds Money Market Fund
(rather than The Cash Management Trust of America) pursuant to the policies
described in the "Purchase and exchange of shares" section of the prospectus.
PURCHASE MINIMUMS AND MAXIMUMS -- All investments are subject to the purchase
minimums and maximums described in the prospectus. As noted in the prospectus,
purchase minimums may be waived or reduced in certain cases.
In the case of American Funds non-tax-exempt funds, the initial purchase minimum
of $25 may be waived for the following account types:
. Payroll deduction retirement plan accounts (such as, but not limited
to, 403(b), 401(k), SIMPLE IRA, SARSEP and deferred compensation plan
accounts); and
. Employer-sponsored CollegeAmerica accounts.
EuroPacific Growth Fund -- Page 44
<PAGE>
The following account types may be established without meeting the initial
purchase minimum:
. Retirement accounts that are funded with employer contributions; and
. Accounts that are funded with monies set by court decree.
The following account types may be established without meeting the initial
purchase minimum, but shareholders wishing to invest in two or more funds must
meet the normal initial purchase minimum of each fund:
. Accounts that are funded with (a) transfers of assets, (b) rollovers
from retirement plans, (c) rollovers from 529 college savings plans or
(d) required minimum distribution automatic exchanges; and
. American Funds money market fund accounts registered in the name of
clients of Capital Guardian Trust Company's Personal Investment
Management group.
Certain accounts held on the fund's books, known as omnibus accounts, contain
multiple underlying accounts that are invested in shares of the fund. These
underlying accounts are maintained by entities such as financial intermediaries
and are subject to the applicable initial purchase minimums as described in the
prospectus and this statement of additional information. However, in the case
where the entity maintaining these accounts aggregates the accounts' purchase
orders for fund shares, such accounts are not required to meet the fund's
minimum amount for subsequent purchases.
EXCHANGES -- You may only exchange shares into other American Funds within the
same share class. However, exchanges from Class A shares of The Cash Management
Trust of America or American Funds Money Market Fund may be made to Class C
shares of other American Funds for dollar cost averaging purposes. Exchanges are
not permitted from Class A shares of The Cash Management Trust of America or
American Funds Money Market Fund to Class C shares of Intermediate Bond Fund of
America, Limited Term Tax-Exempt Bond Fund of America or Short-Term Bond Fund of
America. Exchange purchases are subject to the minimum investment requirements
of the fund purchased and no sales charge generally applies. However, exchanges
of shares from American Funds money market funds are subject to applicable sales
charges on the fund being purchased, unless the money market fund shares were
acquired by an exchange from a fund having a sales charge, or by reinvestment
or cross-reinvestment of dividends or capital gain distributions. Exchanges of
Class F shares generally may only be made through fee-based programs of
investment firms that have special agreements with the fund's distributor and
certain registered investment advisers.
You may exchange shares of other classes by contacting the Transfer Agent, by
contacting your investment dealer or financial adviser, by using American
FundsLine or americanfunds.com, or by telephoning 800/421-0180 toll-free, or
faxing (see "American Funds Service Company service areas" in the prospectus for
the appropriate fax numbers) the Transfer Agent. For more information, see
"Shareholder account services and privileges" in this statement of additional
information. THESE TRANSACTIONS HAVE THE SAME TAX CONSEQUENCES AS ORDINARY SALES
AND PURCHASES.
Shares held in employer-sponsored retirement plans may be exchanged into other
American Funds by contacting your plan administrator or recordkeeper. Exchange
redemptions and purchases are processed simultaneously at the share prices next
determined after the exchange order is received (see "Price of shares" in this
statement of additional information).
EuroPacific Growth Fund -- Page 45
<PAGE>
FREQUENT TRADING OF FUND SHARES -- As noted in the prospectus, certain
redemptions may trigger a purchase block lasting 30 calendar days under the
fund's "purchase blocking policy." Under this policy, systematic redemptions
will not trigger a purchase block and systematic purchases will not be
prevented. For purposes of this policy, systematic redemptions include, for
example, regular periodic automatic redemptions and statement of intention
escrow share redemptions. Systematic purchases include, for example, regular
periodic automatic purchases and automatic reinvestments of dividends and
capital gain distributions.
OTHER POTENTIALLY ABUSIVE ACTIVITY -- In addition to implementing purchase
blocks, American Funds Service Company will monitor for other types of activity
that could potentially be harmful to the American Funds - for example,
short-term trading activity in multiple funds. When identified, American Funds
Service Company will request that the shareholder discontinue the activity. If
the activity continues, American Funds Service Company will freeze the
shareholder account to prevent all activity other than redemptions of fund
shares.
MOVING BETWEEN SHARE CLASSES
If you wish to "move" your investment between share classes (within the
same fund or between different funds), we generally will process your
request as an exchange of the shares you currently hold for shares in the
new class or fund. Below is more information about how sales charges are
handled for various scenarios.
EXCHANGING CLASS B SHARES FOR CLASS A SHARES -- If you exchange Class B
shares for Class A shares during the contingent deferred sales charge
period you are responsible for paying any applicable deferred sales charges
attributable to those Class B shares, but you will not be required to pay a
Class A sales charge. If, however, you exchange your Class B shares for
Class A shares after the contingent deferred sales charge period, you are
responsible for paying any applicable Class A sales charges.
EXCHANGING CLASS C SHARES FOR CLASS A SHARES -- If you exchange Class C
shares for Class A shares, you are still responsible for paying any Class C
contingent deferred sales charges and applicable Class A sales charges.
EXCHANGING CLASS C SHARES FOR CLASS F SHARES -- If you are part of a
qualified fee-based program and you wish to exchange your Class C shares
for Class F shares to be held in the program, you are still responsible for
paying any applicable Class C contingent deferred sales charges.
EXCHANGING CLASS F SHARES FOR CLASS A SHARES -- You can exchange Class F
shares held in a qualified fee-based program for Class A shares without
paying an initial Class A sales charge if all of the following requirements
are met: (a) you are leaving or have left the fee-based program, (b) you
have held the Class F shares in the program for at least one year, and (c)
you notify American Funds Service Company of your request. If you have
already redeemed your Class F shares, the foregoing requirements apply and
you must purchase Class A shares within 90 days after redeeming your Class
F shares to receive the Class A shares without paying an initial Class A
sales charge.
EXCHANGING CLASS A SHARES FOR CLASS F SHARES -- If you are part of a
qualified fee-based program and you wish to exchange your Class A shares
for Class F shares to be
EuroPacific Growth Fund -- Page 46
<PAGE>
held in the program, any Class A sales charges (including contingent
deferred sales charges) that you paid or are payable will not be credited
back to your account.
EXCHANGING CLASS A SHARES FOR CLASS R SHARES -- Provided it is eligible to
invest in Class R shares, a retirement plan currently invested in Class A
shares may exchange its shares for Class R shares. Any Class A sales
charges that the retirement plan previously paid will not be credited back
to the plan's account.
EXCHANGING CLASS F-1 SHARES FOR CLASS F-2 SHARES -- If you are part of a
qualified fee-based program that offers Class F-2 shares, you may exchange
your Class F-1 shares for Class F-2 shares to be held in the program.
MOVING BETWEEN OTHER SHARE CLASSES -- If you desire to move your investment
between share classes and the particular scenario is not described in this
statement of additional information, please contact American Funds Service
Company at 800/421-0180 for more information.
NON-REPORTABLE TRANSACTIONS -- Automatic conversions described in the
prospectus will be non-reportable for tax purposes. In addition, except in
the case of a movement between a 529 share class and a non-529 share class,
an exchange of shares from one share class of a fund to another share class
of the same fund will be treated as a non-reportable exchange for tax
purposes, provided that the exchange request is received in writing by
American Funds Service Company and processed as a single transaction.
SALES CHARGES
CLASS A PURCHASES
PURCHASES BY CERTAIN 403(B) PLANS
A 403(b) plan may not invest in Class A, B or C shares on or after January
1, 2009, unless such plan was invested in Class A, B or C shares prior to
that date.
Participant accounts of a 403(b) plan that were treated as an
individual-type plan for sales charge purposes prior to January 1, 2009,
may continue to be treated as accounts of an individual-type plan for sales
charge purposes. Participant accounts of a 403(b) plan that were treated as
an employer-sponsored plan for sales charge purposes prior to January 1,
2009, may continue to be treated as accounts of an employer-sponsored plan
for sales charge purposes. Participant accounts of a 403(b) plan that is
established on or after January 1, 2009 are treated as accounts of an
employer-sponsored plan for sales charge purposes.
PURCHASES BY SEP PLANS AND SIMPLE IRA PLANS
Participant accounts in a Simplified Employee Pension (SEP) plan or a
Savings Incentive Match Plan for Employees of Small Employers IRA (SIMPLE
IRA) plan will be aggregated together for Class A sales charge purposes if
the SEP plan or SIMPLE IRA plan was established after November 15, 2004 by
an employer adopting a prototype plan produced by American Funds
Distributors, Inc. In the case where the employer adopts any other plan
(including, but not limited to, an IRS model agreement), each participant's
account in
EuroPacific Growth Fund -- Page 47
<PAGE>
the plan will be aggregated with the participant's own personal investments
that qualify under the aggregation policy. A SEP plan or SIMPLE IRA plan
with a certain method of aggregating participant accounts as of November
15, 2004 may continue with that method so long as the employer has not
modified the plan document since that date.
OTHER PURCHASES
Pursuant to a determination of eligibility by a vice president or more
senior officer of the Capital Research and Management Company Fund
Administration Unit, or by his or her designee, Class A shares of the
American Funds stock, stock/bond and bond funds may be sold at net asset
value to:
(1) current or retired directors, trustees, officers and advisory board
members of, and certain lawyers who provide services to, the funds
managed by Capital Research and Management Company, current or retired
employees of Washington Management Corporation, current or retired
employees and partners of The Capital Group Companies, Inc. and its
affiliated companies, certain family members of the above persons, and
trusts or plans primarily for such persons;
(2) currently registered representatives and assistants directly employed
by such representatives, retired registered representatives with
respect to accounts established while active, or full-time employees
(collectively, "Eligible Persons") (and their (a) spouses or
equivalents if recognized under local law, (b) parents and children,
including parents and children in step and adoptive relationships,
sons-in-law and daughters-in-law, and (c) parents-in-law, if the
Eligible Persons or the spouses, children or parents of the Eligible
Persons are listed in the account registration with the
parents-in-law) of dealers who have sales agreements with the
Principal Underwriter (or who clear transactions through such
dealers), plans for the dealers, and plans that include as
participants only the Eligible Persons, their spouses, parents and/or
children;
(3) currently registered investment advisers ("RIAs") and assistants
directly employed by such RIAs, retired RIAs with respect to accounts
established while active, or full-time employees (collectively,
"Eligible Persons") (and their (a) spouses or equivalents if
recognized under local law, (b) parents and children, including
parents and children in step and adoptive relationships, sons-in-law
and daughters-in-law and (c) parents-in-law, if the Eligible Persons
or the spouses, children or parents of the Eligible Persons are listed
in the account registration with the parents-in-law) of RIA firms that
are authorized to sell shares of the funds, plans for the RIA firms,
and plans that include as participants only the Eligible Persons,
their spouses, parents and/or children;
(4) companies exchanging securities with the fund through a merger,
acquisition or exchange offer;
(5) insurance company separate accounts;
(6) accounts managed by subsidiaries of The Capital Group Companies, Inc.;
(7) The Capital Group Companies, Inc., its affiliated companies and
Washington Management Corporation;
EuroPacific Growth Fund -- Page 48
<PAGE>
(8) an individual or entity with a substantial business relationship with
The Capital Group Companies, Inc. or its affiliates, or an individual
or entity related or relating to such individual or entity;
(9) wholesalers and full-time employees directly supporting wholesalers
involved in the distribution of insurance company separate accounts
whose underlying investments are managed by any affiliate of The
Capital Group Companies, Inc.; and
(10) full-time employees of banks that have sales agreements with the
Principal Underwriter, who are solely dedicated to directly supporting
the sale of mutual funds.
Shares are offered at net asset value to these persons and organizations
due to anticipated economies in sales effort and expense. Once an account
is established under this net asset value privilege, additional investments
can be made at net asset value for the life of the account.
TRANSFERS TO COLLEGEAMERICA -- A transfer from the Virginia Prepaid
Education Program/SM/ or the Virginia Education Savings Trust/SM/ to a
CollegeAmerica account will be made with no sales charge. No commission
will be paid to the dealer on such a transfer.
MOVING BETWEEN ACCOUNTS -- Investments in certain account types may be moved to
other account types without incurring additional Class A sales charges. These
transactions include, for example:
. redemption proceeds from a non-retirement account (for example, a
joint tenant account) used to purchase fund shares in an IRA or other
individual-type retirement account;
. required minimum distributions from an IRA or other individual-type
retirement account used to purchase fund shares in a non-retirement
account; and
. death distributions paid to a beneficiary's account that are used by
the beneficiary to purchase fund shares in a different account.
LOAN REPAYMENTS -- Repayments on loans taken from a retirement plan or an
individual-type retirement account are not subject to sales charges if American
Funds Service Company is notified of the repayment.
DEALER COMMISSIONS AND COMPENSATION -- Commissions (up to 1.00%) are paid to
dealers who initiate and are responsible for certain Class A share purchases not
subject to initial sales charges. These purchases consist of purchases of $1
million or more, purchases by employer-sponsored defined contribution-type
retirement plans investing $1 million or more or with 100 or more eligible
employees, and purchases made at net asset value by certain retirement plans,
endowments and foundations with assets of $50 million or more. Commissions on
such investments (other than IRA rollover assets that roll over at no sales
charge under the fund's IRA rollover policy as described in the prospectus) are
paid to dealers at the following rates: 1.00% on amounts of less than $4
million, 0.50% on amounts of at least $4 million but less than $10 million and
0.25% on amounts of at least $10 million. Commissions are based on cumulative
investments over the life of the account with no adjustment for redemptions,
transfers, or market declines. For example, if a shareholder has accumulated
investments in excess of $4 million (but
EuroPacific Growth Fund -- Page 49
<PAGE>
less than $10 million) and subsequently redeems all or a portion of the
account(s), purchases following the redemption will generate a dealer commission
of 0.50%.
A dealer concession of up to 1% may be paid by the fund under its Class A plan
of distribution to reimburse the Principal Underwriter in connection with dealer
and wholesaler compensation paid by it with respect to investments made with no
initial sales charge.
SALES CHARGE REDUCTIONS AND WAIVERS
REDUCING YOUR CLASS A SALES CHARGE -- As described in the prospectus, there are
various ways to reduce your sales charge when purchasing Class A shares.
Additional information about Class A sales charge reductions is provided below.
STATEMENT OF INTENTION -- By establishing a statement of intention (the
"Statement"), you enter into a nonbinding commitment to purchase shares of
the American Funds (excluding money market funds) over a 13-month period
and receive the same sales charge (expressed as a percentage of your
purchases) as if all shares had been purchased at once, unless the Statement
is upgraded as described below.
The Statement period starts on the date on which your first purchase made
toward satisfying the Statement is processed. The market value of your
existing holdings eligible to be aggregated (see below) as of the day
immediately before the start of the Statement period may be credited toward
satisfying the Statement.
You may revise the commitment you have made in your Statement upward at any
time during the Statement period. If your prior commitment has not been met
by the time of the revision, the Statement period during which purchases
must be made will remain unchanged. Purchases made from the date of the
revision will receive the reduced sales charge, if any, resulting from the
revised Statement. If your prior commitment has been met by the time of the
revision, your original Statement will be considered met and a new
Statement will be established.
The Statement will be considered completed if the shareholder dies within
the 13-month Statement period. Commissions to dealers will not be adjusted
or paid on the difference between the Statement amount and the amount
actually invested before the shareholder's death.
When a shareholder elects to use a Statement, shares equal to 5% of the
dollar amount specified in the Statement may be held in escrow in the
shareholder's account out of the initial purchase (or subsequent purchases,
if necessary) by the Transfer Agent. All dividends and any capital gain
distributions on shares held in escrow will be credited to the
shareholder's account in shares (or paid in cash, if requested). If the
intended investment is not completed within the specified Statement period,
the purchaser may be required to remit to the Principal Underwriter the
difference between the sales charge actually paid and the sales charge
which would have been paid if the total of such purchases had been made at
a single time. Any dealers assigned to the shareholder's account at the
time a purchase was made during the Statement period will receive a
corresponding commission adjustment if appropriate. If the difference is
not paid by the close of the Statement period, the appropriate number of
shares held in escrow will be redeemed to
EuroPacific Growth Fund -- Page 50
<PAGE>
pay such difference. If the proceeds from this redemption are inadequate,
the purchaser may be liable to the Principal Underwriter for the balance
still outstanding.
Certain payroll deduction retirement plans purchasing Class A shares under
a Statement on or before November 12, 2006, may continue to purchase Class
A shares at the sales charge determined by that particular Statement until
the plans' values reach the amounts specified in their Statements. Upon
reaching such amounts, the Statements for these plans will be deemed
completed and will terminate. In addition, effective May 1, 2009, the
Statements for these plans will expire if they have not been met by next
anniversary of the establishment of such Statement. After such termination,
these plans are eligible for additional sales charge reductions by meeting
the criteria under the fund's rights of accumulation policy.
In addition, if you currently have individual holdings in American Legacy
variable annuity contracts or variable life insurance policies that were
established on or before March 31, 2007, you may continue to apply
purchases under such contracts and policies to a Statement.
Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms and those in the prospectus with
their first purchase.
AGGREGATION -- Qualifying investments for aggregation include those made by
you and your "immediate family" as defined in the prospectus, if all
parties are purchasing shares for their own accounts and/or:
. individual-type employee benefit plans, such as an IRA,
single-participant Keogh-type plan, or a participant account of a
403(b) plan that is treated as an individual-type plan for sales
charge purposes (see "Purchases by certain 403(b) plans" under "Sales
charges" in this statement of additional information);
. SEP plans and SIMPLE IRA plans established after November 15, 2004 by
an employer adopting any plan document other than a prototype plan
produced by American Funds Distributors, Inc.;
. business accounts solely controlled by you or your immediate family
(for example, you own the entire business);
. trust accounts established by you or your immediate family (for trusts
with only one primary beneficiary, upon the trustor's death the trust
account may be aggregated with such beneficiary's own accounts; for
trusts with multiple primary beneficiaries, upon the trustor's death
the trustees of the trust may instruct American Funds Service Company
to establish separate trust accounts for each primary beneficiary;
each primary beneficiary's separate trust account may then be
aggregated with such beneficiary's own accounts);
. endowments or foundations established and controlled by you or your
immediate family; or
. 529 accounts, which will be aggregated at the account owner level
(Class 529-E accounts may only be aggregated with an eligible employer
plan).
EuroPacific Growth Fund -- Page 51
<PAGE>
Individual purchases by a trustee(s) or other fiduciary(ies) may also be
aggregated if the investments are:
. for a single trust estate or fiduciary account, including employee
benefit plans other than the individual-type employee benefit plans
described above;
. made for two or more employee benefit plans of a single employer or of
affiliated employers as defined in the 1940 Act, excluding the
individual-type employee benefit plans described above;
. for a diversified common trust fund or other diversified pooled
account not specifically formed for the purpose of accumulating fund
shares;
. for nonprofit, charitable or educational organizations, or any
endowments or foundations established and controlled by such
organizations, or any employer-sponsored retirement plans established
for the benefit of the employees of such organizations, their
endowments, or their foundations;
. for participant accounts of a 403(b) plan that is treated as an
employer-sponsored plan for sales charge purposes (see "Purchases by
certain 403(b) plans" under "Sales charges" in this statement of
additional information), or made for participant accounts of two or
more such plans, in each case of a single employer or affiliated
employers as defined in the 1940 Act; or
. for a SEP or SIMPLE IRA plan established after November 15, 2004 by an
employer adopting a prototype plan produced by American Funds
Distributors, Inc.
Purchases made for nominee or street name accounts (securities held in the
name of an investment dealer or another nominee such as a bank trust
department instead of the customer) may not be aggregated with those made
for other accounts and may not be aggregated with other nominee or street
name accounts unless otherwise qualified as described above.
CONCURRENT PURCHASES -- As described in the prospectus, you may reduce your
Class A sales charge by combining purchases of all classes of shares in the
American Funds, as well as holdings in Endowments and applicable holdings
in the American Funds Target Date Retirement Series. Shares of money market
funds purchased through an exchange, reinvestment or cross-reinvestment
from a fund having a sales charge also qualify. However, direct purchases
of American Funds money market funds are excluded. If you currently have
individual holdings in American Legacy variable annuity contracts or
variable life insurance policies that were established on or before March
31, 2007, you may continue to combine purchases made under such contracts
and policies to reduce your Class A sales charge.
RIGHTS OF ACCUMULATION -- Subject to the limitations described in the
aggregation policy, you may take into account your accumulated holdings in
all share classes of the American Funds, as well as your holdings in
Endowments and applicable holdings in the American Funds Target Date
Retirement Series, to determine your sales charge on investments in
accounts eligible to be aggregated. Direct purchases of American Funds
money market funds are excluded. Subject to your investment dealer's or
recordkeeper's capabilities, your accumulated holdings will be calculated
as the higher of (a) the current value of your existing holdings (the
"market value") or (b) the amount you invested
EuroPacific Growth Fund -- Page 52
<PAGE>
(including reinvested dividends and capital gains, but excluding capital
appreciation) less any withdrawals (the "cost value"). Depending on the
entity on whose books your account is held, the value of your holdings in
that account may not be eligible for calculation at cost value. For
example, accounts held in nominee or street name may not be eligible for
calculation at cost value and instead may be calculated at market value for
purposes of rights of accumulation.
The value of all of your holdings in accounts established in calendar year
2005 or earlier will be assigned an initial cost value equal to the market
value of those holdings as of the last business day of 2005. Thereafter,
the cost value of such accounts will increase or decrease according to
actual investments or withdrawals. You must contact your financial adviser
or American Funds Service Company if you have additional information that
is relevant to the calculation of the value of your holdings.
When determining your American Funds Class A sales charge, if your
investment is not in an employer-sponsored retirement plan, you may also
continue to take into account the market value (as of the day prior to your
American Funds investment) of your individual holdings in various American
Legacy variable annuity contracts and variable life insurance policies that
were established on or before March 31, 2007. An employer-sponsored
retirement plan may also continue to take into account the market value of
its investments in American Legacy Retirement Investment Plans that were
established on or before March 31, 2007.
You may not purchase Class B or 529-B shares if your combined American
Funds and applicable American Legacy holdings cause you to be eligible to
purchase Class A or 529-A shares at the $100,000 or higher sales charge
discount rate. In addition, you may not purchase Class C or 529-C shares if
such combined holdings cause you to be eligible to purchase Class A or
529-A shares at the $1 million or more sales charge discount rate (i.e. at
net asset value).
If you make a gift of American Funds Class A shares, upon your request, you
may purchase the shares at the sales charge discount allowed under rights
of accumulation of all of your American Funds and applicable American
Legacy accounts.
RIGHT OF REINVESTMENT -- As described in the prospectus, certain
transactions may be eligible for investment without a sales charge pursuant
to the fund's right of reinvestment policy. Recent legislation suspended
required minimum distributions from individual retirement accounts and
employer-sponsored retirement plan accounts for the 2009 tax year. Given
this suspension, proceeds from an automatic withdrawal plan to satisfy a
required minimum distribution may be invested without a sales charge for
the 2009 tax year, or any subsequent period, to the extent such legislation
is extended. This policy is subject to any restrictions regarding the
investment of proceeds from a required minimum distribution that may be
established by the transfer agent.
CDSC WAIVERS FOR CLASS A, B AND C SHARES -- As noted in the prospectus, a
contingent deferred sales charge ("CDSC") may be waived for redemptions due to
death or post-purchase disability of a shareholder (this generally excludes
accounts registered in the names of trusts and other entities). In the case of
joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at
the time he or she notifies the Transfer Agent of the other joint tenant's death
and removes the decedent's name from the account, may redeem shares from the
account without
EuroPacific Growth Fund -- Page 53
<PAGE>
incurring a CDSC. Redemptions made after the Transfer Agent is notified of the
death of a joint tenant will be subject to a CDSC.
In addition, a CDSC may be waived for the following types of transactions, if
together they do not exceed 12% of the value of an "account" (defined below)
annually (the "12% limit"):
. Required minimum distributions taken from retirement accounts upon the
shareholder's attainment of age 70-1/2 (required minimum distributions
that continue to be taken by the beneficiary(ies) after the account
owner is deceased also qualify for a waiver).
. Redemptions through an automatic withdrawal plan ("AWP") (see
"Automatic withdrawals" under "Shareholder account services and
privileges" in this statement of additional information). For each AWP
payment, assets that are not subject to a CDSC, such as appreciation
on shares and shares acquired through reinvestment of dividends and/or
capital gain distributions, will be redeemed first and will count
toward the 12% limit. If there is an insufficient amount of assets not
subject to a CDSC to cover a particular AWP payment, shares subject to
the lowest CDSC will be redeemed next until the 12% limit is reached.
Any dividends and/or capital gain distributions taken in cash by a
shareholder who receives payments through an AWP will also count
toward the 12% limit. In the case of an AWP, the 12% limit is
calculated at the time an automatic redemption is first made, and is
recalculated at the time each additional automatic redemption is made.
Shareholders who establish an AWP should be aware that the amount of a
payment not subject to a CDSC may vary over time depending on
fluctuations in the value of their accounts. This privilege may be
revised or terminated at any time.
For purposes of this paragraph, "account" means:
. in the case of Class A shares, your investment in Class A shares of
all American Funds (investments representing direct purchases of
American Funds money market funds are excluded);
. in the case of Class B shares, your investment in Class B shares of
the particular fund from which you are making the redemption; and
. in the case of Class C shares, your investment in Class C shares of
the particular fund from which you are making the redemption.
CDSC waivers are allowed only in the cases listed here and in the prospectus.
For example, CDSC waivers will not be allowed on redemptions of Class 529-B and
529-C shares due to termination of CollegeAmerica; a determination by the
Internal Revenue Service that CollegeAmerica does not qualify as a qualified
tuition program under the Code; proposal or enactment of law that eliminates or
limits the tax-favored status of CollegeAmerica; or elimination of the fund by
the Virginia College Savings Plan as an option for additional investment within
CollegeAmerica.
SELLING SHARES
The methods for selling (redeeming) shares are described more fully in the
prospectus. If you wish to sell your shares by contacting American Funds Service
Company directly, any such
EuroPacific Growth Fund -- Page 54
<PAGE>
request must be signed by the registered shareholders. To contact American Funds
Service Company via overnight mail or courier service, see "Purchase and
exchange of shares."
A signature guarantee may be required for certain redemptions. In such an event,
your signature may be guaranteed by a domestic stock exchange or the Financial
Industry Regulatory Authority, bank, savings association or credit union that is
an eligible guarantor institution. The Transfer Agent reserves the right to
require a signature guarantee on any redemptions.
Additional documentation may be required for sales of shares held in corporate,
partnership or fiduciary accounts. You must include with your written request
any shares you wish to sell that are in certificate form.
If you sell Class A, B or C shares and request a specific dollar amount to be
sold, we will sell sufficient shares so that the sale proceeds, after deducting
any applicable CDSC, equals the dollar amount requested.
Redemption proceeds will not be mailed until sufficient time has passed to
provide reasonable assurance that checks or drafts (including certified or
cashier's checks) for shares purchased have cleared (which may take up to 10
business days from the purchase date). Except for delays relating to clearance
of checks for share purchases or in extraordinary circumstances (and as
permissible under the 1940 Act), sale proceeds will be paid on or before the
seventh day following receipt and acceptance of an order. Interest will not
accrue or be paid on amounts that represent uncashed distribution or redemption
checks.
You may request that redemption proceeds of $1,000 or more from money market
funds be wired to your bank by writing American Funds Service Company. A
signature guarantee is required on all requests to wire funds.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
The following services and privileges are generally available to all
shareholders. However, certain services and privileges described in the
prospectus and this statement of additional information may not be available for
Class 529 shareholders or if your account is held with an investment dealer or
through an employer-sponsored retirement plan.
AUTOMATIC INVESTMENT PLAN -- An automatic investment plan enables you to make
monthly or quarterly investments in the American Funds through automatic debits
from your bank account. To set up a plan, you must fill out an account
application and specify the amount that you would like to invest and the date on
which you would like your investments to occur. The plan will begin within 30
days after your account application is received. Your bank account will be
debited on the day or a few days before your investment is made, depending on
the bank's capabilities. The Transfer Agent will then invest your money into the
fund you specified on or around the date you specified. If the date you
specified falls on a weekend or holiday, your money will be invested on the
following business day. However, if the following business day falls in the next
month, your money will be invested on the business day immediately preceding the
weekend or holiday. If your bank account cannot be debited due to insufficient
funds, a stop-payment or the closing of the account, the plan may be terminated
and the related investment reversed. You may change the amount of the investment
or discontinue the plan at any time by contacting the Transfer Agent.
EuroPacific Growth Fund -- Page 55
<PAGE>
AUTOMATIC REINVESTMENT -- Dividends and capital gain distributions are
reinvested in additional shares of the same class and fund at net asset value
unless you indicate otherwise on the account application. You also may elect to
have dividends and/or capital gain distributions paid in cash by informing the
fund, the Transfer Agent or your investment dealer. Dividends and capital gain
distributions paid to retirement plan shareholders or shareholders of the 529
share classes will be automatically reinvested.
If you have elected to receive dividends and/or capital gain distributions in
cash, and the postal or other delivery service is unable to deliver checks to
your address of record, or you do not respond to mailings from American Funds
Service Company with regard to uncashed distribution checks, your distribution
option may be automatically converted to having all dividends and other
distributions reinvested in additional shares.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS -- For all share classes,
except the 529 classes of shares, you may cross-reinvest dividends and capital
gains (distributions) into other American Funds in the same share class at net
asset value, subject to the following conditions:
(1) the aggregate value of your account(s) in the fund(s) paying distributions
equals or exceeds $5,000 (this is waived if the value of the account in the fund
receiving the distributions equals or exceeds that fund's minimum initial
investment requirement);
(2) if the value of the account of the fund receiving distributions is below
the minimum initial investment requirement, distributions must be automatically
reinvested; and
(3) if you discontinue the cross-reinvestment of distributions, the value of
the account of the fund receiving distributions must equal or exceed the minimum
initial investment requirement. If you do not meet this requirement within 90
days of notification, the fund has the right to automatically redeem the
account.
AUTOMATIC EXCHANGES -- For all share classes, you may automatically exchange
shares of the same class in amounts of $50 or more among any of the American
Funds on any day (or preceding business day if the day falls on a nonbusiness
day) of each month you designate.
AUTOMATIC WITHDRAWALS -- Depending on the type of account, for all share classes
except R shares, you may automatically withdraw shares from any of the American
Funds. You can make automatic withdrawals of $50 or more. You can designate the
day of each period for withdrawals and request that checks be sent to you or
someone else. Withdrawals may also be electronically deposited to your bank
account. The Transfer Agent will withdraw your money from the fund you specify
on or around the date you specify. If the date you specified falls on a weekend
or holiday, the redemption will take place on the previous business day.
However, if the previous business day falls in the preceding month, the
redemption will take place on the following business day after the weekend or
holiday. You should consult with your adviser or intermediary to determine if
your account is eligible for automatic withdrawals.
Withdrawal payments are not to be considered as dividends, yield or income.
Generally, automatic investments may not be made into a shareholder account from
which there are automatic withdrawals. Withdrawals of amounts exceeding
reinvested dividends and distributions and increases in share value would reduce
the aggregate value of the shareholder's account. The Transfer Agent arranges
for the redemption by the fund of sufficient shares,
EuroPacific Growth Fund -- Page 56
<PAGE>
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
Redemption proceeds from an automatic withdrawal plan are not eligible for
reinvestment without a sales charge.
ACCOUNT STATEMENTS -- Your account is opened in accordance with your
registration instructions. Transactions in the account, such as additional
investments, will be reflected on regular confirmation statements from the
Transfer Agent. Dividend and capital gain reinvestments, purchases through
automatic investment plans and certain retirement plans, as well as automatic
exchanges and withdrawals, will be confirmed at least quarterly.
AMERICAN FUNDSLINE AND AMERICANFUNDS.COM -- You may check your share balance,
the price of your shares or your most recent account transaction; redeem shares
(up to $75,000 per American Funds shareholder each day) from nonretirement plan
accounts; or exchange shares around the clock with American FundsLine or using
americanfunds.com. To use American FundsLine, call 800/325-3590 from a
TouchTone(TM) telephone. Redemptions and exchanges through American FundsLine
and americanfunds.com are subject to the conditions noted above and in
"Telephone and Internet purchases, redemptions and exchanges" below. You will
need your fund number (see the list of the American Funds under "General
information -- fund numbers"), personal identification number (generally the
last four digits of your Social Security number or other tax identification
number associated with your account) and account number.
Generally, all shareholders are automatically eligible to use these services.
However, if you are not currently authorized to do so, you may complete an
American FundsLink Authorization Form. Once you establish this privilege, you,
your financial adviser or any person with your account information may use these
services.
TELEPHONE AND INTERNET PURCHASES, REDEMPTIONS AND EXCHANGES -- By using the
telephone (including American FundsLine) or the Internet (including
americanfunds.com), or fax purchase, redemption and/or exchange options, you
agree to hold the fund, the Transfer Agent, any of its affiliates or mutual
funds managed by such affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from any losses, expenses,
costs or liabilities (including attorney fees) that may be incurred in
connection with the exercise of these privileges. Generally, all shareholders
are automatically eligible to use these services. However, you may elect to opt
out of these services by writing the Transfer Agent (you may also reinstate them
at any time by writing the Transfer Agent). If the Transfer Agent does not
employ reasonable procedures to confirm that the instructions received from any
person with appropriate account information are genuine, it and/or the fund may
be liable for losses due to unauthorized or fraudulent instructions. In the
event that shareholders are unable to reach the fund by telephone because of
technical difficulties, market conditions or a natural disaster, redemption and
exchange requests may be made in writing only.
CHECKWRITING -- You may establish check writing privileges for Class A shares
(but not Class 529-A shares) of American Funds money market funds upon meeting
the fund's initial purchase minimum of $1,000. This can be done by using an
account application. If you request check writing privileges, you will be
provided with checks that you may use to draw against your account. These checks
may be made payable to anyone you designate and must be signed by the authorized
number of registered shareholders exactly as indicated on your account
application.
EuroPacific Growth Fund -- Page 57
<PAGE>
REDEMPTION OF SHARES -- The fund's declaration of trust permits the fund to
direct the Transfer Agent to redeem the shares of any shareholder for their then
current net asset value per share if at such time the shareholder of record owns
shares having an aggregate net asset value of less than the minimum initial
investment amount required of new shareholders as set forth in the fund's
current registration statement under the 1940 Act, and subject to such further
terms and conditions as the board of trustees of the fund may from time to time
adopt.
While payment of redemptions normally will be in cash, the fund's declaration of
trust permits payment of the redemption price wholly or partly with portfolio
securities or other fund assets under conditions and circumstances determined by
the fund's board of trustees. For example, redemptions could be made in this
manner if the board determined that making payments wholly in cash over a
particular period would be unfair and/or harmful to other fund shareholders.
SHARE CERTIFICATES -- Shares are credited to your account and certificates are
not issued unless you request them by contacting the Transfer Agent.
Certificates are not available for the 529 or R share classes.
GENERAL INFORMATION
CUSTODIAN OF ASSETS -- Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by JPMorgan Chase Bank, 270 Park Avenue, New York, NY 10017-2070, as
Custodian. If the fund holds securities of issuers outside the U.S., the
Custodian may hold these securities pursuant to subcustodial arrangements in
banks outside the U.S. or branches of U.S. banks outside the U.S.
TRANSFER AGENT -- American Funds Service Company, a wholly owned subsidiary of
the investment adviser, maintains the records of shareholder accounts, processes
purchases and redemptions of the fund's shares, acts as dividend and capital
gain distribution disbursing agent, and performs other related shareholder
service functions. The principal office of American Funds Service Company is
located at 6455 Irvine Center Drive, Irvine, CA 92618. American Funds Service
Company was paid a fee of $48,274,000 for Class A shares and $1,204,000 for
Class B shares for the 2008 fiscal year. American Funds Service Company is also
compensated for certain transfer agency services provided to all other share
classes from the administrative services fees paid to Capital Research and
Management Company and from the relevant share class, as described under
"Administrative services agreement."
In the case of certain shareholder accounts, third parties who may be
unaffiliated with the investment adviser provide transfer agency and shareholder
services in place of American Funds Service Company. These services are rendered
under agreements with American Funds Service Company or its affiliates and the
third parties receive compensation according to such agreements. Compensation
for transfer agency and shareholder services, whether paid to American Funds
Service Company or such third parties, is ultimately paid from fund assets and
is reflected in the expenses of the fund as disclosed in the prospectus.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -- Deloitte & Touche LLP, 695 Town
Center Drive, Costa Mesa, California 92626, serves as the fund's independent
registered public accounting firm, providing audit services, preparation of tax
returns and review of certain documents to be filed with the Securities and
Exchange Commission. The financial statements included in this statement of
additional information from the annual report have been audited by Deloitte &
Touche LLP, an independent registered public accounting firm, as stated in their
report
EuroPacific Growth Fund -- Page 58
<PAGE>
appearing herein. Such financial statements have been so included in reliance
upon the report of such firm given upon their authority as experts in accounting
and auditing. The selection of the fund's independent registered public
accounting firm is reviewed and determined annually by the board of trustees.
INDEPENDENT LEGAL COUNSEL -- K & L Gates LLP, Four Embarcadero Center, Suite
1200, San Francisco, CA 94111, serves as independent legal counsel ("counsel")
for the fund and for independent trustees in their capacities as such. Counsel
does not provide legal services to the fund's investment adviser, but provides
an insignificant amount of legal services unrelated to the operations of the
fund to an investment adviser affiliate. A determination with respect to the
independence of the fund's counsel will be made at least annually by the
independent trustees of the fund, as prescribed by the 1940 Act and related
rules.
PROSPECTUSES, REPORTS TO SHAREHOLDERS AND PROXY STATEMENTS -- The fund's fiscal
year ends on March 31. Shareholders are provided updated prospectuses annually
and at least semiannually with reports showing the fund's investment portfolio
or summary investment portfolio, financial statements and other information. The
fund's annual financial statements are audited by the fund's independent
registered public accounting firm, Deloitte & Touche LLP. In addition,
shareholders may also receive proxy statements for the fund. In an effort to
reduce the volume of mail shareholders receive from the fund when a household
owns more than one account, the Transfer Agent has taken steps to eliminate
duplicate mailings of prospectuses, shareholder reports and proxy statements. To
receive additional copies of a prospectus, report or proxy statement,
shareholders should contact the Transfer Agent.
Shareholders may also elect to receive updated prospectuses, annual reports and
semi-annual reports electronically by signing up for electronic delivery on our
website, americanfunds.com. Upon electing the electronic delivery of updated
prospectuses and other reports, a shareholder will no longer automatically
receive such documents in paper form by mail. A shareholder who elects
electronic delivery is able to cancel this service at any time and return to
receiving updated prospectuses and other reports in paper form by mail.
Prospectuses, annual reports and semi-annual reports that are mailed to
shareholders by the American Funds organization are printed with ink containing
soy and/or vegetable oil on paper containing recycled fibers.
CODES OF ETHICS -- The fund and Capital Research and Management Company and its
affiliated companies, including the fund's Principal Underwriter, have adopted
codes of ethics that allow for personal investments, including securities in
which the fund may invest from time to time. These codes include a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; preclearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; blackout periods on personal
investing for certain investment personnel; ban on short-term trading profits
for investment personnel; limitations on service as a director of publicly
traded companies; and disclosure of personal securities transactions.
LEGAL PROCEEDINGS -- On February 16, 2005, the NASD (now the Financial Industry
Regulatory Authority, or FINRA) filed an administrative complaint against the
Principal Underwriter. The complaint alleges violations of certain NASD rules by
the Principal Underwriter with respect to the selection of broker-dealer firms
that buy and sell securities for mutual fund investment portfolios. The
complaint seeks sanctions, restitution and disgorgement. On August 30, 2006, a
EuroPacific Growth Fund -- Page 59
<PAGE>
FINRA Hearing Panel ruled against the Principal Underwriter and imposed a $5
million fine. On April 30, 2008, FINRA's National Adjudicatory Council affirmed
the decision by FINRA's Hearing Panel. The Principal Underwriter has appealed
this decision to the Securities and Exchange Commission.
The investment adviser and Principal Underwriter believe that the likelihood
that this matter could have a material adverse effect on the fund or on the
ability of the investment adviser or Principal Underwriter to perform their
contracts with the fund is remote. In addition, class action lawsuits have been
filed in the U.S. District Court, Central District of California, relating to
this and other matters. The investment adviser believes that these suits are
without merit and will defend itself vigorously.
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND MAXIMUM OFFERING PRICE
PER SHARE FOR CLASS A SHARES -- SEPTEMBER 30, 2008
Net asset value and redemption price per share
(Net assets divided by shares outstanding). . $37.48
Maximum offering price per share
(100/94.25 of net asset value per share,
which takes into account the fund's current maximum
sales charge). . . . . . . . . . . . . . . . $39.77
OTHER INFORMATION -- The fund reserves the right to modify the privileges
described in this statement of additional information at any time.
The financial statements, including the investment portfolio and the report of
the fund's independent registered public accounting firm contained in the annual
report, are included in this statement of additional information. The following
information on fund numbers is not included in the annual report:
EuroPacific Growth Fund -- Page 60
<PAGE>
FUND NUMBERS -- Here are the fund numbers for use with our automated telephone
line, American FundsLine/(R)/, or when making share transactions:
FUND NUMBERS
-------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS F-1 CLASS F-2
-------------------------------------------------------------------------------
STOCK AND STOCK/BOND FUNDS
AMCAP Fund/(R)/ . . . . . . 002 202 302 402 602
American Balanced Fund/(R)/ 011 211 311 411 611
American Mutual Fund/(R)/ . 003 203 303 403 603
Capital Income Builder/(R)/ 012 212 312 412 612
Capital World Growth and
Income Fund/SM/ . . . . . . 033 233 333 433 633
EuroPacific Growth Fund/(R)/ 016 216 316 416 616
Fundamental Investors/SM/ . 010 210 310 410 610
The Growth Fund of
America/(R)/. . . . . . . . 005 205 305 405 605
The Income Fund of
America/(R)/. . . . . . . . 006 206 306 406 606
International Growth and
Income Fund/SM/ . . . . . . 034 234 334 434 634
The Investment Company of
America/(R)/. . . . . . . . 004 204 304 404 604
The New Economy Fund/(R)/ . 014 214 314 414 614
New Perspective Fund/(R)/ . 007 207 307 407 607
New World Fund/(R)/ . . . . 036 236 336 436 636
SMALLCAP World Fund/(R)/ . 035 235 335 435 635
Washington Mutual Investors
Fund/SM/ . . . . . . . . . 001 201 301 401 601
BOND FUNDS
American High-Income
Municipal Bond Fund/(R)/ . 040 240 340 440 640
American High-Income
Trust/SM/ . . . . . . . . . 021 221 321 421 621
The Bond Fund of America/SM/ 008 208 308 408 608
Capital World Bond Fund/(R)/ 031 231 331 431 631
Intermediate Bond Fund of
America/SM/ . . . . . . . . 023 223 323 423 623
Limited Term Tax-Exempt Bond
Fund of America/SM/ . . . . 043 243 343 443 643
Short-Term Bond Fund of
America/SM/ . . . . . . . . 048 248 348 448 648
The Tax-Exempt Bond Fund of
America/(R)/. . . . . . . . 019 219 319 419 619
The Tax-Exempt Fund of
California/(R)/*. . . . . . 020 220 320 420 620
The Tax-Exempt Fund of
Maryland/(R)/*. . . . . . . 024 224 324 424 624
The Tax-Exempt Fund of
Virginia/(R)/*. . . . . . . 025 225 325 425 625
U.S. Government Securities
Fund/SM/. . . . . . . . . . 022 222 322 422 622
MONEY MARKET FUNDS
American Funds Money Market
Fund/SM/ . . . . . . . . . 059 259 359 459 659
The Cash Management Trust of
America/(R)/. . . . . . . . 009 209 309 409 609
The Tax-Exempt Money Fund of
America/SM/ . . . . . . . . 039 N/A N/A N/A N/A
The U.S. Treasury Money Fund
of America/SM/ . . . . . . 049 N/A N/A N/A N/A
___________
*Qualified for sale only in certain jurisdictions.
EuroPacific Growth Fund -- Page 61
<PAGE>
FUND NUMBERS
----------------------------------------------
CLASS CLASS CLASS CLASS CLASS
FUND 529-A 529-B 529-C 529-E 529-F-1
-------------------------------------------------------------------------------
STOCK AND STOCK/BOND FUNDS
AMCAP Fund . . . . . . . . . . 1002 1202 1302 1502 1402
American Balanced Fund . . . . 1011 1211 1311 1511 1411
American Mutual Fund . . . . . 1003 1203 1303 1503 1403
Capital Income Builder . . . . 1012 1212 1312 1512 1412
Capital World Growth and Income
Fund . . . . . . . . . . . . . 1033 1233 1333 1533 1433
EuroPacific Growth Fund . . . 1016 1216 1316 1516 1416
Fundamental Investors . . . . 1010 1210 1310 1510 1410
The Growth Fund of America . . 1005 1205 1305 1505 1405
The Income Fund of America . . 1006 1206 1306 1506 1406
International Growth and Income
Fund . . . . . . . . . . . . . 1034 1234 1334 1534 1434
The Investment Company of
America. . . . . . . . . . . . 1004 1204 1304 1504 1404
The New Economy Fund . . . . . 1014 1214 1314 1514 1414
New Perspective Fund . . . . . 1007 1207 1307 1507 1407
New World Fund . . . . . . . . 1036 1236 1336 1536 1436
SMALLCAP World Fund . . . . . 1035 1235 1335 1535 1435
Washington Mutual Investors
Fund . . . . . . . . . . . . . 1001 1201 1301 1501 1401
BOND FUNDS
American High-Income Trust . . 1021 1221 1321 1521 1421
The Bond Fund of America . . . 1008 1208 1308 1508 1408
Capital World Bond Fund . . . 1031 1231 1331 1531 1431
Intermediate Bond Fund of
America. . . . . . . . . . . . 1023 1223 1323 1523 1423
Short-Term Bond Fund of America 1048 1248 1348 1548 1448
U.S. Government Securities Fund 1022 1222 1322 1522 1422
MONEY MARKET FUND
American Funds Money Market
Fund . . . . . . . . . . . . . 1059 1259 1359 1559 1459
The Cash Management Trust of
America. . . . . . . . . . . . 1009 1209 1309 1509 1409
EuroPacific Growth Fund -- Page 62
<PAGE>
FUND NUMBERS
------------------------------------------
CLASS CLASS CLASS CLASS CLASS CLASS
FUND R-1 R-2 R-3 R-4 R-5 R-6
-------------------------------------------------------------------------------
STOCK AND STOCK/BOND FUNDS
AMCAP Fund . . . . . . . . . . . . 2102 2202 2302 2402 2502 2602
American Balanced Fund . . . . . . 2111 2211 2311 2411 2511 2611
American Mutual Fund . . . . . . . 2103 2203 2303 2403 2503 2603
Capital Income Builder . . . . . . 2112 2212 2312 2412 2512 2612
Capital World Growth and Income
Fund . . . . . . . . . . . . . . . 2133 2233 2333 2433 2533 2633
EuroPacific Growth Fund . . . . . 2116 2216 2316 2416 2516 2616
Fundamental Investors . . . . . . 2110 2210 2310 2410 2510 2610
The Growth Fund of America . . . . 2105 2205 2305 2405 2505 2605
The Income Fund of America . . . . 2106 2206 2306 2406 2506 2606
International Growth and Income
Fund . . . . . . . . . . . . . . . 2134 2234 2334 2434 2534 2634
The Investment Company of America 2104 2204 2304 2404 2504 2604
The New Economy Fund . . . . . . . 2114 2214 2314 2414 2514 2614
New Perspective Fund . . . . . . . 2107 2207 2307 2407 2507 2607
New World Fund . . . . . . . . . . 2136 2236 2336 2436 2536 2636
SMALLCAP World Fund . . . . . . . 2135 2235 2335 2435 2535 2635
Washington Mutual Investors Fund . 2101 2201 2301 2401 2501 2601
BOND FUNDS
American High-Income Municipal Bond
Fund . . . . . . . . . . . . . . . N/A N/A N/A N/A 2540 N/A
American High-Income Trust . . . . 2121 2221 2321 2421 2521 2621
The Bond Fund of America . . . . . 2108 2208 2308 2408 2508 2608
Capital World Bond Fund . . . . . 2131 2231 2331 2431 2531 2631
Intermediate Bond Fund of America 2123 2223 2323 2423 2523 2623
Limited Term Tax-Exempt Bond Fund
of America . . . . . . . . . . . . N/A N/A N/A N/A 2543 N/A
Short-Term Bond Fund of America. . 2148 2248 2348 2448 2548 2648
The Tax-Exempt Bond Fund of America N/A N/A N/A N/A 2519 N/A
The Tax-Exempt Fund of California* N/A N/A N/A N/A 2520 N/A
The Tax-Exempt Fund of Maryland* . N/A N/A N/A N/A 2524 N/A
The Tax-Exempt Fund of Virginia* . N/A N/A N/A N/A 2525 N/A
U.S. Government Securities Fund . 2122 2222 2322 2422 2522 2622
MONEY MARKET FUNDS
American Funds Money Market Fund . 2159 2259 2359 2459 2559 2659
The Cash Management Trust of
America. . . . . . . . . . . . . . 2109 2209 2309 2409 2509 N/A
The Tax-Exempt Money Fund of
America . . . . . . . . . . . . . N/A N/A N/A N/A 2539 N/A
The U.S. Treasury Money Fund of
America . . . . . . . . . . . . . 2149 2249 2349 2449 2549 N/A
___________
*Qualified for sale only in certain
jurisdictions.
EuroPacific Growth Fund -- Page 63
<PAGE>
FUND NUMBERS
---------------------------------------------------
CLASS CLASS CLASS CLASS CLASS CLASS
FUND CLASS A R-1 R-2 R-3 R-4 R-5 R-6
-------------------------------------------------------------------------------
AMERICAN FUNDS TARGET DATE RETIREMENT SERIES/(R)/
American Funds 2050 Target
Date Retirement Fund/(R)/ 069 2169 2269 2369 2469 2569 2669
American Funds 2045 Target
Date Retirement Fund/(R)/ 068 2168 2268 2368 2468 2568 2668
American Funds 2040 Target
Date Retirement Fund/(R)/ 067 2167 2267 2367 2467 2567 2667
American Funds 2035 Target
Date Retirement Fund/(R)/ 066 2166 2266 2366 2466 2566 2666
American Funds 2030 Target
Date Retirement Fund/(R)/ 065 2165 2265 2365 2465 2565 2665
American Funds 2025 Target
Date Retirement Fund/(R)/ 064 2164 2264 2364 2464 2564 2664
American Funds 2020 Target
Date Retirement Fund/(R)/ 063 2163 2263 2363 2463 2563 2663
American Funds 2015 Target
Date Retirement Fund/(R)/ 062 2162 2262 2362 2462 2562 2662
American Funds 2010 Target
Date Retirement Fund/(R)/ 061 2161 2261 2361 2461 2561 2661
EuroPacific Growth Fund -- Page 64
<PAGE>
APPENDIX
The following descriptions of debt security ratings are based on information
provided by Moody's Investors Service and Standard & Poor's Corporation.
DESCRIPTION OF BOND RATINGS
MOODY'S
LONG-TERM RATING DEFINITIONS
Aaa
Obligations rated Aaa are judged to be of the highest quality, with minimal
credit risk.
Aa
Obligations rated Aa are judged to be of high quality and are subject to very
low credit risk.
A
Obligations rated A are considered upper-medium grade and are subject to low
credit risk.
Baa
Obligations rated Baa are subject to moderate credit risk. They are considered
medium-grade and as such may possess certain speculative characteristics.
Ba
Obligations rated Ba are judged to have speculative elements and are subject to
substantial credit risk.
B
Obligations rated B are considered speculative and are subject to high credit
risk.
Caa
Obligations rated Caa are judged to be of poor standing and are subject to very
high credit risk.
Ca
Obligations rated Ca are highly speculative and are likely in, or very near,
default, with some prospect of recovery of principal and interest.
C
Obligations rated C are the lowest rated class of bonds and are typically in
default, with little prospect for recovery of principal or interest.
NOTE: Moody's appends numerical modifiers 1, 2, and 3 to each generic rating
classification from Aa through Caa. The modifier 1 indicates that the obligation
ranks in the higher end of its generic rating category; the modifier 2 indicates
a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of
that generic rating category.
EuroPacific Growth Fund -- Page 65
<PAGE>
STANDARD & POOR'S
LONG-TERM ISSUE CREDIT RATINGS
AAA
An obligation rated AAA has the highest rating assigned by Standard & Poor's.
The obligor's capacity to meet its financial commitment on the obligation is
extremely strong.
AA
An obligation rated AA differs from the highest-rated obligations only in small
degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.
A
An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.
BBB
An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity of the obligor to meet its financial commitment on the
obligation.
BB, B, CCC, CC, AND C
Obligations rated BB, B, CCC, CC, and C are regarded as having significant
speculative characteristics. BB indicates the least degree of speculation and C
the highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major
exposures to adverse conditions.
BB
An obligation rated BB is less vulnerable to nonpayment than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse
business, financial, or economic conditions which could lead to the obligor's
inadequate capacity to meet its financial commitment on the obligation.
B
An obligation rated B is more vulnerable to nonpayment than obligations rated
BB, but the obligor currently has the capacity to meet its financial commitment
on the obligation. Adverse business, financial, or economic conditions will
likely impair the obligor's capacity or willingness to meet its financial
commitment on the obligation.
CCC
An obligation rated CCC is currently vulnerable to nonpayment and is dependent
upon favorable business, financial, and economic conditions for the obligor to
meet its financial commitment on the obligation. In the event of adverse
business, financial, or economic conditions, the obligor is not likely to have
the capacity to meet its financial commitment on the obligation.
CC
An obligation rated CC is currently highly vulnerable to nonpayment.
EuroPacific Growth Fund -- Page 66
<PAGE>
C
A C rating is assigned to obligations that are currently highly vulnerable to
nonpayment, obligations that have payment arrearages allowed by the terms of the
documents, or obligations of an issuer that is the subject of a bankruptcy
petition or similar action which have not experienced a payment default. Among
others, the C rating may be assigned to subordinated debt, preferred stock or
other obligations on which cash payments have been suspended in accordance with
the instrument's terms.
D
An obligation rated D is in payment default. The D rating category is used when
payments on an obligation are not made on the date due even if the applicable
grace period has not expired, unless Standard & Poor's believes that such
payments will be made during such grace period. The D rating also will be used
upon the filing of a bankruptcy petition or the taking of a similar action if
payments on an obligation are jeopardized.
PLUS (+) OR MINUS (-)
The ratings from AA to CCC may be modified by the addition of a plus or minus
sign to show relative standing within the major rating categories.
EuroPacific Growth Fund -- Page 67
|
Industry
sector diversification (percent of net assets)
|
||||
|
Financials
|
15.03 | % | ||
|
Health
care
|
11.86 | |||
|
Telecommunication
services
|
10.42 | |||
|
Consumer
discretionary
|
8.19 | |||
|
Energy
|
8.11 | |||
|
Other
industries
|
35.10 | |||
|
Preferred
stocks
|
0.04 | |||
|
Bonds &
notes
|
0.06 | |||
|
Short-term
securities & other assets less liabilities
|
11.19 | |||
|
Country
diversification (percent of net assets)
|
||||
|
Euro zone
*
|
33.1 | |||
|
Switzerland
|
7.7 | |||
|
Japan
|
7.5 | |||
|
United
Kingdom
|
7.2 | |||
|
Mexico
|
3.2 | |||
|
Brazil
|
2.9 | |||
|
South
Korea
|
2.8 | |||
|
Canada
|
2.7 | |||
|
Russia
|
2.7 | |||
|
Taiwan
|
2.6 | |||
|
Other
countries
|
16.4 | |||
|
Short-term
securities & other assets less liabilities
|
11.2 | |||
|
* Countries
using the euro as a common currency; those represented in the portfolio
are Austria, Belguim, Finland, France,
Germany,
Greece, Ireland, Italy, the Netherlands, Portugal and
Spain.
|
||||
|
Investments
in affiliates
|
|
A company is
considered to be an affiliate of the fund under the Investment Company Act
of 1940 if the
|
|
fund's
holdings in that company represent 5% or more of the outstanding voting
shares of that company.
|
|
The fund's
affiliated holdings listed below are either shown in the preceding summary
investment portfolio
|
|
or included
in the value of "Other securities" under their respective industry
sectors. Further
|
|
details on
these holdings and related transactions during the six months ended
September 30, 2008, appear below.
|
|
Beginning
shares
|
Additions
|
Reductions
|
Ending
shares
|
Dividend
income
(000)
|
Value of
affiliates
at 9/30/08
(000)
|
|
|
HTC Corp.
(1)
|
25,558,000
|
16,643,100
|
3,828,000
|
38,373,100
|
$ 27,101
|
$ 547,720
|
|
Ryanair
Holdings PLC (ADR) (2)
|
19,373,900
|
-
|
-
|
19,373,900
|
-
|
434,557
|
|
UCB SA
(1)
|
11,908,290
|
-
|
179,362
|
11,728,928
|
14,538
|
416,666
|
|
Nobel Biocare
Holding AG (1)
|
908,464
|
6,894,842
|
-
|
7,803,306
|
3,638
|
261,976
|
|
Hirose
Electric Co., Ltd. (1)
|
2,547,000
|
-
|
-
|
2,547,000
|
1,790
|
243,424
|
|
Techtronic
Industries Co. Ltd. (1)
|
86,710,000
|
-
|
-
|
86,710,000
|
500
|
79,766
|
|
Acer Inc. (1)
(5)
|
136,488,101
|
1,471,428
|
49,102,838
|
88,856,691
|
9,299
|
-
|
|
Chuo Mitsui
Trust Holdings, Inc. (5)
|
64,238,000
|
-
|
64,238,000
|
-
|
-
|
-
|
|
Continental
AG (5)
|
8,280,790
|
698,000
|
8,978,790
|
-
|
21,978
|
-
|
|
Mondi PLC
(5)
|
19,197,500
|
-
|
19,197,500
|
-
|
4,821
|
-
|
|
ProSiebenSAT.1
Media AG, nonvoting preferred (1) (5)
|
7,110,000
|
-
|
3,360,000
|
3,750,000
|
11,675
|
-
|
|
Public Power
Corp. SA (1) (5)
|
11,646,727
|
-
|
451,324
|
11,195,403
|
1,815
|
-
|
|
$ 97,155
|
$ 1,984,109
|
|
The following
footnotes apply to either the individual securities noted or one or more
of the securities aggregated and listed as a single line
item.
|
||||||||||||
|
(1) Valued
under fair value procedures adopted by authority of the board of trustees.
The total value of all such securities, including those in "Miscellaneous"
and "Other securities," was $70,693,336,000, which represented 77.24% of
the net assets of the fund.
|
||||||||||||
|
(2) Security
did not produce income during the last 12 months.
|
||||||||||||
|
(3)
Represents an affiliated company as defined under the Investment Company
Act of 1940.
|
||||||||||||
|
(4) Purchased
in a transaction exempt from registration under the Securities Act of
1933. May be resold in the United States in transactions exempt from
registration, normally to qualified institutional buyers. The total value
of all such securities, including those in "Other securities," was
$3,083,806,000, which represented 3.37% of the net assets of the
fund.
|
||||||||||||
|
(5)
Unaffiliated issuer at 9/30/2008.
|
||||||||||||
|
Key to
abbreviation
|
||||||||||||
|
ADR =
American Depositary Receipts
|
||||||||||||
|
See Notes to
Financial Statements
|
||||||||||||
|
Statement
of assets and liabilities
|
unaudited
|
|||||||
|
at September
30, 2008
|
(dollars in
thousands)
|
|||||||
|
Assets:
|
||||||||
|
Investment
securities, at value:
|
||||||||
|
Unaffiliated
issuers (cost: $88,467,012)
|
$ | 89,571,075 | ||||||
|
Affiliated
issuers (cost: $2,421,245)
|
1,984,109 | $ | 91,555,184 | |||||
|
Cash
denominated in currencies other than U.S. dollars
|
||||||||
|
(cost:
$26,835)
|
26,693 | |||||||
|
Cash
|
10,758 | |||||||
|
Unrealized
gain on forward currency contracts
|
28,174 | |||||||
|
Receivables
for:
|
||||||||
|
Sales
of investments
|
347,604 | |||||||
|
Sales
of fund's shares
|
177,234 | |||||||
|
Dividends
and interest
|
221,017 | 745,855 | ||||||
| 92,366,664 | ||||||||
|
Liabilities:
|
||||||||
|
Payables
for:
|
||||||||
|
Purchases
of investments
|
274,819 | |||||||
|
Repurchases
of fund's shares
|
493,186 | |||||||
|
Investment
advisory services
|
30,817 | |||||||
|
Services
provided by affiliates
|
34,052 | |||||||
|
Trustees'
deferred compensation
|
3,181 | |||||||
|
Other
|
3,265 | 839,320 | ||||||
|
Net
assets at September 30, 2008
|
$ | 91,527,344 | ||||||
|
Net
assets consist of:
|
||||||||
|
Capital
paid in on shares of beneficial interest
|
$ | 86,744,547 | ||||||
|
Undistributed
net investment income
|
1,652,644 | |||||||
|
Undistributed
net realized gain
|
2,443,702 | |||||||
|
Net
unrealized appreciation
|
686,451 | |||||||
|
Net
assets at September 30, 2008
|
$ | 91,527,344 | ||||||
|
1.
|
Organization
and significant accounting policies
|
|
Share
class
|
Initial
sales charge
|
Contingent
deferred sales charge upon redemption
|
Conversion
feature
|
|
Classes A and
529-A
|
Up to
5.75%
|
None (except
1% for certain redemptions within one year of purchase without an initial
sales charge)
|
None
|
|
Classes B and
529-B
|
None
|
Declines from
5% to 0% for redemptions within six years of purchase
|
Classes B and
529-B convert to Classes A and 529-A, respectively, after eight
years
|
|
Class
C
|
None
|
1% for
redemptions within one year of purchase
|
Class C
converts to Class F-1 after 10 years
|
|
Class
529-C
|
None
|
1% for
redemptions within one year of purchase
|
None
|
|
Class
529-E
|
None
|
None
|
None
|
|
Classes F-1,
F-2 and 529-F-1
|
None
|
None
|
None
|
|
Classes R-1,
R-2, R-3, R-4 and R-5
|
None
|
None
|
None
|
|
2.
|
Risk
factors
|
|
(dollars in
thousands)
|
||||
|
Gross
unrealized appreciation on investment securities
|
$ | 12,446,413 | ||
|
Gross
unrealized depreciation on investment securities
|
(12,076,583 | ) | ||
|
Net
unrealized appreciation on investment securities
|
369,830 | |||
|
Cost of
investment securities
|
91,185,354 | |||
|
Share
class
|
Ordinary
income
|
Long-term
capital gains
|
Total
distributions paid
|
|||||||||
|
|
||||||||||||
|
Class
A
|
$ | 1,167,078 | $ | 4,213,545 | $ | 5,380,623 | ||||||
|
Class
B
|
23,244 | 131,749 | 154,993 | |||||||||
|
Class
C
|
52,409 | 299,432 | 351,841 | |||||||||
|
Class
F-1
|
195,993 | 709,861 | 905,854 | |||||||||
|
Class
529-A
|
14,493 | 52,632 | 67,125 | |||||||||
|
Class
529-B
|
1,259 | 7,566 | 8,825 | |||||||||
|
Class
529-C
|
3,746 | 21,866 | 25,612 | |||||||||
|
Class
529-E
|
720 | 3,077 | 3,797 | |||||||||
|
Class
529-F-1
|
1,021 | 3,411 | 4,432 | |||||||||
|
Class
R-1
|
2,306 | 12,678 | 14,984 | |||||||||
|
Class
R-2
|
16,094 | 92,884 | 108,978 | |||||||||
|
Class
R-3
|
127,609 | 542,968 | 670,577 | |||||||||
|
Class
R-4
|
205,109 | 753,852 | 958,961 | |||||||||
|
Class
R-5
|
417,988 | 1,338,858 | 1,756,846 | |||||||||
|
Total
|
$ | 2,229,069 | $ | 8,184,379 | $ | 10,413,448 | ||||||
|
Share
class
|
Currently
approved limits
|
Plan
limits
|
|
Class
A
|
0.25%
|
0.25%
|
|
Class
529-A
|
0.25
|
0.50
|
|
Classes B and
529-B
|
1.00
|
1.00
|
|
Classes C,
529-C and R-1
|
1.00
|
1.00
|
|
Class
R-2
|
0.75
|
1.00
|
|
Classes 529-E
and R-3
|
0.50
|
0.75
|
|
Classes F-1,
529-F-1 and R-4
|
0.25
|
0.50
|
|
Share
class
|
Distribution
services
|
Transfer
agent services
|
Administrative
services
|
||
|
CRMC
administrative services
|
Transfer
agent services
|
Commonwealth
of Virginia administrative services
|
|||
|
Class
A
|
$66,769
|
$28,370
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
B
|
8,246
|
724
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
C
|
19,814
|
Included
in
administrative
services
|
$2,268
|
$282
|
Not
applicable
|
|
Class
F-1
|
12,772
|
6,112
|
461
|
Not
applicable
|
|
|
Class
F-2
†
|
Not
applicable
|
66
|
6
|
Not
applicable
|
|
|
Class
529-A
|
764
|
314
|
42
|
$397
|
|
|
Class
529-B
|
527
|
42
|
14
|
53
|
|
|
Class
529-C
|
1,577
|
125
|
34
|
158
|
|
|
Class
529-E
|
112
|
18
|
2
|
22
|
|
|
Class
529-F-1
|
-
|
20
|
2
|
26
|
|
|
Class
R-1
|
1,076
|
111
|
30
|
Not
applicable
|
|
|
Class
R-2
|
4,808
|
942
|
1,709
|
Not
applicable
|
|
|
Class
R-3
|
18,301
|
3,616
|
1,068
|
Not
applicable
|
|
|
Class
R-4
|
13,707
|
7,877
|
102
|
Not
applicable
|
|
|
Class
R-5
|
Not
applicable
|
6,903
|
55
|
Not
applicable
|
|
|
Total
|
$148,473
|
$29,094
|
$28,414
|
$3,807
|
$656
|
|
Investment
securities
|
Forward
currency contracts
|
|||||||
|
Level 1 –
Quoted prices
|
$ | 10,547,728 | ||||||
|
Level 2 –
Other significant observable inputs
|
80,975,454 | * | $ | 28,174 | † | |||
|
Level 3 –
Significant unobservable inputs
|
32,002 | |||||||
|
Total
|
$ | 91,555,184 | ||||||
|
Beginning
value at 4/1/2008
|
$ | - | ||
|
Net transfers
into Level 3
|
32,002 | |||
|
Ending value
at 9/30/2008
|
$ | 32,002 |
|
Contract
amount
|
U.S.
valuation at
September
30, 2008
|
|||||||||||||||
|
Unrealized
|
||||||||||||||||
|
Receive
|
Deliver
|
Amount
|
appreciation
|
|||||||||||||
|
Sales:
|
||||||||||||||||
|
British
pounds
|
||||||||||||||||
|
expiring
10/31/2008 - 2/13/2009
|
$ | 435,892 | £ | 231,797 | $ | 412,859 | $ | 23,033 | ||||||||
|
Euros
|
||||||||||||||||
|
expiring
2/11/2009
|
70,000 | € | 45,963 | 64,859 | 5,141 | |||||||||||
|
Forward
currency contracts - net
|
$ | 28,174 | ||||||||||||||
|
(Loss) income
from investment operations
(2)
|
Dividends and
distributions
|
|||||||||||||||||||
|
Net asset
value, beginning of period
|
Net investment
income
|
Net (losses)
gains on securities (both realized and unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Distributions
(from capital gains)
|
Total
dividends and distributions
|
Net asset
value, end of period
|
Total return
(3)
(4)
|
Net assets,
end of period (in millions)
|
Ratio of
expenses to average net assets before reimbursements
/waivers
|
Ratio of expenses to average net
assets after reimbursements
/waivers
(4)
|
Ratio of net income to average net
assets
(4)
|
||||||||
|
Class
A:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
$46.83
|
$.70
|
$ |
(10.05)
|
$(9.35)
|
$ -
|
$ -
|
$ -
|
$37.48
|
(19.97)%
|
$43,624
|
.80%
|
(6)
|
.76%
|
(6)
|
3.08%
|
(6)
|
||
|
Year
ended 3/31/2008
|
47.92
|
.95
|
2.60
|
3.55
|
(1.01)
|
(3.63)
|
(4.64)
|
46.83
|
6.40
|
57,445
|
.79
|
.74
|
1.87
|
|||||||
|
Year
ended 3/31/2007
|
44.20
|
.71
|
6.49
|
7.20
|
(.77)
|
(2.71)
|
(3.48)
|
47.92
|
16.63
|
57,407
|
.79
|
.75
|
1.54
|
|||||||
|
Year
ended 3/31/2006
|
35.63
|
.62
|
9.99
|
10.61
|
(.72)
|
(1.32)
|
(2.04)
|
44.20
|
30.25
|
50,209
|
.81
|
.76
|
1.58
|
|||||||
|
Year
ended 3/31/2005
|
32.26
|
.43
|
3.45
|
3.88
|
(.51)
|
-
|
(.51)
|
35.63
|
12.08
|
37,515
|
.83
|
.82
|
1.31
|
|||||||
|
Year
ended 3/31/2004
|
20.78
|
.29
|
11.50
|
11.79
|
(.31)
|
-
|
(.31)
|
32.26
|
57.11
|
32,759
|
.87
|
.87
|
1.08
|
|||||||
|
Class
B:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.14
|
.53
|
(9.87)
|
(9.34)
|
-
|
-
|
-
|
36.80
|
(20.24)
|
1,263
|
1.55
|
(6)
|
1.50
|
(6)
|
2.37
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.31
|
.56
|
2.54
|
3.10
|
(.64)
|
(3.63)
|
(4.27)
|
46.14
|
5.60
|
1,775
|
1.52
|
1.48
|
1.12
|
|||||||
|
Year
ended 3/31/2007
|
43.71
|
.35
|
6.42
|
6.77
|
(.46)
|
(2.71)
|
(3.17)
|
47.31
|
15.78
|
1,709
|
1.54
|
1.50
|
.78
|
|||||||
|
Year
ended 3/31/2006
|
35.29
|
.32
|
9.88
|
10.20
|
(.46)
|
(1.32)
|
(1.78)
|
43.71
|
29.32
|
1,394
|
1.55
|
1.51
|
.82
|
|||||||
|
Year
ended 3/31/2005
|
32.00
|
.18
|
3.41
|
3.59
|
(.30)
|
-
|
(.30)
|
35.29
|
11.24
|
954
|
1.58
|
1.56
|
.55
|
|||||||
|
Year
ended 3/31/2004
|
20.65
|
.08
|
11.41
|
11.49
|
(.14)
|
-
|
(.14)
|
32.00
|
55.95
|
737
|
1.62
|
1.62
|
.31
|
|||||||
|
Class
C:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
45.64
|
.51
|
(9.76)
|
(9.25)
|
-
|
-
|
-
|
36.39
|
(20.27)
|
3,142
|
1.59
|
(6)
|
1.54
|
(6)
|
2.29
|
(6)
|
|||
|
Year
ended 3/31/2008
|
46.85
|
.53
|
2.53
|
3.06
|
(.64)
|
(3.63)
|
(4.27)
|
45.64
|
5.57
|
4,093
|
1.57
|
1.53
|
1.06
|
|||||||
|
Year
ended 3/31/2007
|
43.35
|
.31
|
6.35
|
6.66
|
(.45)
|
(2.71)
|
(3.16)
|
46.85
|
15.65
|
3,640
|
1.62
|
1.58
|
.69
|
|||||||
|
Year
ended 3/31/2006
|
35.04
|
.27
|
9.82
|
10.09
|
(.46)
|
(1.32)
|
(1.78)
|
43.35
|
29.21
|
2,697
|
1.64
|
1.60
|
.71
|
|||||||
|
Year
ended 3/31/2005
|
31.81
|
.14
|
3.40
|
3.54
|
(.31)
|
-
|
(.31)
|
35.04
|
11.16
|
1,546
|
1.67
|
1.65
|
.44
|
|||||||
|
Year
ended 3/31/2004
|
20.58
|
.06
|
11.37
|
11.43
|
(.20)
|
-
|
(.20)
|
31.81
|
55.76
|
939
|
1.70
|
1.70
|
.19
|
|||||||
|
Class
F-1:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.62
|
.68
|
(9.99)
|
(9.31)
|
-
|
-
|
-
|
37.31
|
(19.97)
|
8,259
|
.83
|
(6)
|
.79
|
(6)
|
3.02
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.73
|
.92
|
2.60
|
3.52
|
(1.00)
|
(3.63)
|
(4.63)
|
46.62
|
6.38
|
10,328
|
.81
|
.77
|
1.81
|
|||||||
|
Year
ended 3/31/2007
|
44.05
|
.69
|
6.47
|
7.16
|
(.77)
|
(2.71)
|
(3.48)
|
47.73
|
16.59
|
8,639
|
.82
|
.78
|
1.50
|
|||||||
|
Year
ended 3/31/2006
|
35.52
|
.59
|
9.97
|
10.56
|
(.71)
|
(1.32)
|
(2.03)
|
44.05
|
30.22
|
6,686
|
.84
|
.80
|
1.50
|
|||||||
|
Year
ended 3/31/2005
|
32.18
|
.40
|
3.45
|
3.85
|
(.51)
|
-
|
(.51)
|
35.52
|
12.01
|
3,901
|
.90
|
.89
|
1.20
|
|||||||
|
Year
ended 3/31/2004
|
20.75
|
.27
|
11.48
|
11.75
|
(.32)
|
-
|
(.32)
|
32.18
|
57.02
|
2,449
|
.92
|
.92
|
.97
|
|||||||
|
Class
F-2:
|
||||||||||||||||||||
|
Period
from 8/1/2008 to 9/30/2008
|
(5)
|
43.75
|
.10
|
(6.35)
|
(6.25)
|
-
|
-
|
-
|
37.50
|
(14.29)
|
447
|
.11
|
.10
|
.24
|
||||||
|
Class
529-A:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.53
|
.68
|
(9.97)
|
(9.29)
|
-
|
-
|
-
|
37.24
|
(19.96)
|
671
|
.84
|
(6)
|
.80
|
(6)
|
3.00
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.66
|
.90
|
2.60
|
3.50
|
(1.00)
|
(3.63)
|
(4.63)
|
46.53
|
6.34
|
789
|
.83
|
.79
|
1.78
|
|||||||
|
Year
ended 3/31/2007
|
44.00
|
.67
|
6.48
|
7.15
|
(.78)
|
(2.71)
|
(3.49)
|
47.66
|
16.59
|
601
|
.83
|
.79
|
1.45
|
|||||||
|
Year
ended 3/31/2006
|
35.49
|
.58
|
9.97
|
10.55
|
(.72)
|
(1.32)
|
(2.04)
|
44.00
|
30.21
|
387
|
.85
|
.80
|
1.47
|
|||||||
|
Year
ended 3/31/2005
|
32.15
|
.39
|
3.46
|
3.85
|
(.51)
|
-
|
(.51)
|
35.49
|
12.04
|
197
|
.91
|
.89
|
1.18
|
|||||||
|
Year
ended 3/31/2004
|
20.74
|
.27
|
11.47
|
11.74
|
(.33)
|
-
|
(.33)
|
32.15
|
57.00
|
104
|
.91
|
.91
|
.98
|
|||||||
|
Class
529-B:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
45.71
|
.49
|
(9.77)
|
(9.28)
|
-
|
-
|
-
|
36.43
|
(20.30)
|
88
|
1.66
|
(6)
|
1.62
|
(6)
|
2.19
|
(6)
|
|||
|
Year
ended 3/31/2008
|
46.93
|
.48
|
2.53
|
3.01
|
(.60)
|
(3.63)
|
(4.23)
|
45.71
|
5.47
|
107
|
1.66
|
1.61
|
.97
|
|||||||
|
Year
ended 3/31/2007
|
43.42
|
.28
|
6.37
|
6.65
|
(.43)
|
(2.71)
|
(3.14)
|
46.93
|
15.60
|
90
|
1.67
|
1.63
|
.63
|
|||||||
|
Year
ended 3/31/2006
|
35.09
|
.25
|
9.82
|
10.07
|
(.42)
|
(1.32)
|
(1.74)
|
43.42
|
29.10
|
64
|
1.71
|
1.67
|
.64
|
|||||||
|
Year
ended 3/31/2005
|
31.86
|
.10
|
3.40
|
3.50
|
(.27)
|
-
|
(.27)
|
35.09
|
11.01
|
39
|
1.80
|
1.79
|
.30
|
|||||||
|
Year
ended 3/31/2004
|
20.61
|
.02
|
11.38
|
11.40
|
(.15)
|
-
|
(.15)
|
31.86
|
55.61
|
24
|
1.83
|
1.83
|
.06
|
|||||||
|
Class
529-C:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
45.63
|
.48
|
(9.74)
|
(9.26)
|
-
|
-
|
-
|
36.37
|
(20.30)
|
264
|
1.66
|
(6)
|
1.62
|
(6)
|
2.19
|
(6)
|
|||
|
Year
ended 3/31/2008
|
46.87
|
.48
|
2.53
|
3.01
|
(.62)
|
(3.63)
|
(4.25)
|
45.63
|
5.47
|
317
|
1.65
|
1.61
|
.96
|
|||||||
|
Year
ended 3/31/2007
|
43.38
|
.28
|
6.37
|
6.65
|
(.45)
|
(2.71)
|
(3.16)
|
46.87
|
15.62
|
248
|
1.67
|
1.63
|
.62
|
|||||||
|
Year
ended 3/31/2006
|
35.08
|
.24
|
9.83
|
10.07
|
(.45)
|
(1.32)
|
(1.77)
|
43.38
|
29.11
|
164
|
1.70
|
1.66
|
.63
|
|||||||
|
Year
ended 3/31/2005
|
31.86
|
.10
|
3.40
|
3.50
|
(.28)
|
-
|
(.28)
|
35.08
|
11.02
|
88
|
1.79
|
1.78
|
.31
|
|||||||
|
Year
ended 3/31/2004
|
20.61
|
.02
|
11.39
|
11.41
|
(.16)
|
-
|
(.16)
|
31.86
|
55.66
|
50
|
1.82
|
1.82
|
.07
|
|||||||
|
Class
529-E:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.17
|
.60
|
(9.87)
|
(9.27)
|
-
|
-
|
-
|
36.90
|
(20.08)
|
37
|
1.15
|
(6)
|
1.11
|
(6)
|
2.70
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.34
|
.74
|
2.57
|
3.31
|
(.85)
|
(3.63)
|
(4.48)
|
46.17
|
6.00
|
45
|
1.14
|
1.10
|
1.47
|
|||||||
|
Year
ended 3/31/2007
|
43.75
|
.52
|
6.43
|
6.95
|
(.65)
|
(2.71)
|
(3.36)
|
47.34
|
16.21
|
36
|
1.15
|
1.11
|
1.14
|
|||||||
|
Year
ended 3/31/2006
|
35.33
|
.45
|
9.91
|
10.36
|
(.62)
|
(1.32)
|
(1.94)
|
43.75
|
29.77
|
24
|
1.18
|
1.13
|
1.13
|
|||||||
|
Year
ended 3/31/2005
|
32.04
|
.28
|
3.43
|
3.71
|
(.42)
|
-
|
(.42)
|
35.33
|
11.63
|
12
|
1.26
|
1.24
|
.84
|
|||||||
|
Year
ended 3/31/2004
|
20.69
|
.17
|
11.44
|
11.61
|
(.26)
|
-
|
(.26)
|
32.04
|
56.45
|
7
|
1.28
|
1.28
|
.61
|
|||||||
|
Class
529-F-1:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
$46.54
|
$.72
|
$ |
(9.98)
|
$(9.26)
|
$ -
|
$ -
|
$ -
|
$37.28
|
(19.90)%
|
$44
|
.65%
|
(6)
|
.61%
|
(6)
|
3.18%
|
(6)
|
||
|
Year
ended 3/31/2008
|
47.65
|
.99
|
2.62
|
3.61
|
(1.09)
|
(3.63)
|
(4.72)
|
46.54
|
6.55
|
51
|
.64
|
.60
|
1.96
|
|||||||
|
Year
ended 3/31/2007
|
43.98
|
.74
|
6.49
|
7.23
|
(.85)
|
(2.71)
|
(3.56)
|
47.65
|
16.79
|
39
|
.65
|
.61
|
1.61
|
|||||||
|
Year
ended 3/31/2006
|
35.45
|
.64
|
9.96
|
10.60
|
(.75)
|
(1.32)
|
(2.07)
|
43.98
|
30.39
|
23
|
.70
|
.66
|
1.63
|
|||||||
|
Year
ended 3/31/2005
|
32.13
|
.36
|
3.44
|
3.80
|
(.48)
|
-
|
(.48)
|
35.45
|
11.89
|
12
|
1.01
|
.99
|
1.09
|
|||||||
|
Year
ended 3/31/2004
|
20.74
|
.24
|
11.48
|
11.72
|
(.33)
|
-
|
(.33)
|
32.13
|
56.79
|
6
|
1.02
|
1.02
|
.82
|
|||||||
|
Class
R-1:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
45.45
|
.49
|
(9.70)
|
(9.21)
|
-
|
-
|
-
|
36.24
|
(20.26)
|
181
|
1.59
|
(6)
|
1.54
|
(6)
|
2.25
|
(6)
|
|||
|
Year
ended 3/31/2008
|
46.71
|
.49
|
2.54
|
3.03
|
(.66)
|
(3.63)
|
(4.29)
|
45.45
|
5.52
|
190
|
1.61
|
1.57
|
.99
|
|||||||
|
Year
ended 3/31/2007
|
43.29
|
.28
|
6.38
|
6.66
|
(.53)
|
(2.71)
|
(3.24)
|
46.71
|
15.68
|
136
|
1.62
|
1.58
|
.61
|
|||||||
|
Year
ended 3/31/2006
|
35.04
|
.26
|
9.82
|
10.08
|
(.51)
|
(1.32)
|
(1.83)
|
43.29
|
29.16
|
66
|
1.65
|
1.61
|
.66
|
|||||||
|
Year
ended 3/31/2005
|
31.89
|
.11
|
3.43
|
3.54
|
(.39)
|
-
|
(.39)
|
35.04
|
11.18
|
29
|
1.72
|
1.68
|
.34
|
|||||||
|
Year
ended 3/31/2004
|
20.67
|
.04
|
11.41
|
11.45
|
(.23)
|
-
|
(.23)
|
31.89
|
55.72
|
8
|
1.82
|
1.71
|
.15
|
|||||||
|
Class
R-2:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
45.62
|
.50
|
(9.75)
|
(9.25)
|
-
|
-
|
-
|
36.37
|
(20.28)
|
1,059
|
1.62
|
(6)
|
1.58
|
(6)
|
2.24
|
(6)
|
|||
|
Year
ended 3/31/2008
|
46.84
|
.50
|
2.54
|
3.04
|
(.63)
|
(3.63)
|
(4.26)
|
45.62
|
5.51
|
1,296
|
1.61
|
1.57
|
1.01
|
|||||||
|
Year
ended 3/31/2007
|
43.36
|
.30
|
6.35
|
6.65
|
(.46)
|
(2.71)
|
(3.17)
|
46.84
|
15.66
|
1,093
|
1.67
|
1.59
|
.66
|
|||||||
|
Year
ended 3/31/2006
|
35.07
|
.26
|
9.83
|
10.09
|
(.48)
|
(1.32)
|
(1.80)
|
43.36
|
29.20
|
735
|
1.76
|
1.60
|
.68
|
|||||||
|
Year
ended 3/31/2005
|
31.86
|
.14
|
3.41
|
3.55
|
(.34)
|
-
|
(.34)
|
35.07
|
11.17
|
375
|
1.90
|
1.64
|
.42
|
|||||||
|
Year
ended 3/31/2004
|
20.64
|
.05
|
11.40
|
11.45
|
(.23)
|
-
|
(.23)
|
31.86
|
55.78
|
174
|
2.08
|
1.67
|
.17
|
|||||||
|
Class
R-3:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.04
|
.63
|
(9.87)
|
(9.24)
|
-
|
-
|
-
|
36.80
|
(20.07)
|
5,520
|
1.08
|
(6)
|
1.04
|
(6)
|
2.82
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.20
|
.78
|
2.54
|
3.32
|
(.85)
|
(3.63)
|
(4.48)
|
46.04
|
6.05
|
7,639
|
1.11
|
1.07
|
1.55
|
|||||||
|
Year
ended 3/31/2007
|
43.64
|
.52
|
6.41
|
6.93
|
(.66)
|
(2.71)
|
(3.37)
|
47.20
|
16.20
|
6,918
|
1.15
|
1.10
|
1.14
|
|||||||
|
Year
ended 3/31/2006
|
35.23
|
.46
|
9.89
|
10.35
|
(.62)
|
(1.32)
|
(1.94)
|
43.64
|
29.85
|
4,336
|
1.15
|
1.11
|
1.18
|
|||||||
|
Year
ended 3/31/2005
|
31.96
|
.30
|
3.42
|
3.72
|
(.45)
|
-
|
(.45)
|
35.23
|
11.68
|
2,321
|
1.18
|
1.16
|
.89
|
|||||||
|
Year
ended 3/31/2004
|
20.68
|
.15
|
11.45
|
11.60
|
(.32)
|
-
|
(.32)
|
31.96
|
56.46
|
1,052
|
1.29
|
1.29
|
.51
|
|||||||
|
Class
R-4:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.17
|
.67
|
(9.89)
|
(9.22)
|
-
|
-
|
-
|
36.95
|
(19.97)
|
9,491
|
.85
|
(6)
|
.80
|
(6)
|
2.99
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.31
|
.88
|
2.60
|
3.48
|
(.99)
|
(3.63)
|
(4.62)
|
46.17
|
6.32
|
10,970
|
.85
|
.81
|
1.75
|
|||||||
|
Year
ended 3/31/2007
|
43.69
|
.64
|
6.45
|
7.09
|
(.76)
|
(2.71)
|
(3.47)
|
47.31
|
16.61
|
8,627
|
.87
|
.82
|
1.41
|
|||||||
|
Year
ended 3/31/2006
|
35.25
|
.57
|
9.91
|
10.48
|
(.72)
|
(1.32)
|
(2.04)
|
43.69
|
30.20
|
5,352
|
.87
|
.83
|
1.45
|
|||||||
|
Year
ended 3/31/2005
|
31.95
|
.39
|
3.44
|
3.83
|
(.53)
|
-
|
(.53)
|
35.25
|
12.04
|
2,668
|
.90
|
.88
|
1.17
|
|||||||
|
Year
ended 3/31/2004
|
20.63
|
.27
|
11.41
|
11.68
|
(.36)
|
-
|
(.36)
|
31.95
|
57.00
|
1,106
|
.92
|
.92
|
.92
|
|||||||
|
Class
R-5:
|
||||||||||||||||||||
|
Six
months ended 9/30/2008
|
(5)
|
46.86
|
.75
|
(10.05)
|
(9.30)
|
-
|
-
|
-
|
37.56
|
(19.85)
|
17,437
|
.53
|
(6)
|
.48
|
(6)
|
3.30
|
(6)
|
|||
|
Year
ended 3/31/2008
|
47.94
|
1.05
|
2.63
|
3.68
|
(1.13)
|
(3.63)
|
(4.76)
|
46.86
|
6.64
|
19,731
|
.55
|
.50
|
2.05
|
|||||||
|
Year
ended 3/31/2007
|
44.22
|
.78
|
6.53
|
7.31
|
(.88)
|
(2.71)
|
(3.59)
|
47.94
|
16.91
|
14,993
|
.57
|
.52
|
1.70
|
|||||||
|
Year
ended 3/31/2006
|
35.64
|
.69
|
10.02
|
10.71
|
(.81)
|
(1.32)
|
(2.13)
|
44.22
|
30.56
|
9,059
|
.58
|
.53
|
1.74
|
|||||||
|
Year
ended 3/31/2005
|
32.26
|
.50
|
3.47
|
3.97
|
(.59)
|
-
|
(.59)
|
35.64
|
12.38
|
4,507
|
.59
|
.58
|
1.51
|
|||||||
|
Year
ended 3/31/2004
|
20.78
|
.35
|
11.51
|
11.86
|
(.38)
|
-
|
(.38)
|
32.26
|
57.49
|
2,473
|
.61
|
.61
|
1.27
|
|||||||
|
|
Year ended
March 31
|
|||||||||||||||||||||||
|
Six months
ended
September 30,
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||||||
|
Portfolio
turnover rate for all classes of shares
|
17 | % | 38 | % | 27 | % | 35 | % | 30 | % | 25 | % | ||||||||||||
|
(1) Based on
operations for the periods shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
|
|
(2) Based on
average shares outstanding.
|
|
(3) Total
returns exclude any applicable sales charges, including contingent
deferred sales charges.
|
|
(4) This
column reflects the impact, if any, of certain reimbursements/waivers from
CRMC. During the periods shown, CRMC reduced fees for investment advisory
services. In addition, during some of the periods shown, CRMC paid a
portion of the fund's transfer agent fees for certain retirement plan
share classes.
|
|
(5)
Unaudited.
|
|
(6)
Annualized.
|
|
See Notes to
Financial Statements
|
|
[begin pie
chart]
|
||
|
Industry
sector diversification (percent of net assets)
|
||
|
Financials
|
16.06
|
%
|
|
Consumer
Discretionary
|
9.81
|
|
|
Telecommunication
services
|
9.60
|
|
|
Materials
|
9.15
|
|
|
Health
care
|
8.51
|
|
|
Other
industries
|
36.07
|
|
|
Short-term
securities & other assets less liabilities
|
10.80
|
|
|
[end pie
chart]
|
||
|
Investments
in affiliates
|
|
A company is
considered to be an affiliate of the fund under the Investment Company Act
of 1940 if the fund's holdings in that company represent 5% or more of the
outstanding voting shares of that company. The fund's affiliated holdings
listed below are either shown in the preceding summary investment
portfolio or included in the market value of "Other securities" under
their respective industry sectors. Further details on these holdings and
related transactions during the year ended March 31, 2008, appear
below.
|
|
Beginning
shares
|
Additions
|
Reductions
|
Ending
shares
|
Dividend
income
(000)
|
Market value
of affiliates
at 3/31/08
(000)
|
|||||||||||||||||||
|
Continental
AG (1)
|
7,038,000 | 1,242,790 | - | 8,280,790 | $ | 16,298 | $ | 844,030 | ||||||||||||||||
|
Ryanair
Holdings PLC (ADR)
|
15,072,400 | 4,301,500 | - | 19,373,900 | - | 547,894 | ||||||||||||||||||
|
Public Power
Corp. SA (1)
|
- | 11,646,727 | - | 11,646,727 | 1,912 | 510,929 | ||||||||||||||||||
|
UCB SA
(1)
|
9,373,290 | 2,535,000 | - | 11,908,290 | 9,775 | 414,444 | ||||||||||||||||||
|
Chuo Mitsui
Trust Holdings, Inc. (1)
|
58,827,000 | 16,273,000 | 10,862,000 | 64,238,000 | 4,169 | 389,311 | ||||||||||||||||||
|
Hirose
Electric Co., Ltd. (1)
|
2,547,000 | - | - | 2,547,000 | 3,541 | 286,696 | ||||||||||||||||||
|
Acer Inc.
(1)
|
151,845,420 | 4,441,681 | 19,799,000 | 136,488,101 | 14,228 | 244,950 | ||||||||||||||||||
|
Mondi PLC
(1)
|
- | 19,197,500 | - | 19,197,500 | 1,911 | 159,209 | ||||||||||||||||||
|
ProSiebenSAT.1
Media AG, nonvoting preferred (1)
|
- | 7,110,000 | - | 7,110,000 | 4,223 | 153,724 | ||||||||||||||||||
|
Techtronic
Industries Co. Ltd. (1)
|
65,780,000 | 20,930,000 | - | 86,710,000 | 2,067 | 85,750 | ||||||||||||||||||
|
HOYA Corp.
(1) (5)
|
7,560,000 | 14,910,500 | 1,333,700 | 21,136,800 | 12,082 | - | ||||||||||||||||||
|
Hypo Real
Estate Holding AG (1) (5)
|
8,183,540 | 2,447,724 | 3,840,000 | 6,791,264 | 14,040 | - | ||||||||||||||||||
|
Hyundai Mobis
Co., Ltd. (1) (5)
|
3,149,000 | 1,244,350 | 1,701,788 | 2,691,562 | 4,878 | - | ||||||||||||||||||
|
Kookmin Bank
(1) (5)
|
18,047,910 | - | 8,744,500 | 9,303,410 | 39,278 | - | ||||||||||||||||||
|
Kookmin Bank
(1) (2) (5)
|
330,000 | - | - | 330,000 | 718 | - | ||||||||||||||||||
|
Linde AG (1)
(5)
|
7,617,903 | 698,405 | 2,419,408 | 5,896,900 | 13,909 | - | ||||||||||||||||||
|
Nitto Denko
Corp. (1) (5)
|
8,687,900 | 1,393,800 | 1,510,800 | 8,570,900 | 6,447 | - | ||||||||||||||||||
|
SEGA SAMMY
HOLDINGS INC. (1) (5)
|
18,401,600 | - | 15,048,500 | 3,353,100 | 2,953 | - | ||||||||||||||||||
|
Smith &
Nephew PLC (1) (5)
|
52,421,300 | - | 38,841,200 | 13,580,100 | 3,540 | - | ||||||||||||||||||
| $ | 155,969 | $ | 3,636,937 | |||||||||||||||||||||
|
The following
footnotes apply to either the individual securities noted or one or more
of the securities aggregated and listed as a single line
item.
|
|||
|
(1) Valued
under fair value procedures adopted by authority of the board of trustees.
The total value of all such securities, including those in "Miscellaneous"
and "Other securities," was $90,520,862,000, which represented 78.87% of
the net assets of the fund.
|
|||
|
(2) Purchased
in a transaction exempt from registration under the Securities Act of
1933. May be resold in the United States in transactions exempt from
registration, normally to qualified institutional buyers. The total value
of all such securities, including those in "Other
securities," was $2,997,740,000, which represented 2.61% of the
net assets of the fund.
|
|||
|
(3)
Represents an affiliated company as defined under the Investment Company
Act of 1940.
|
|||
|
(4) Security
did not produce income during the last 12 months.
|
|||
|
(5)
Unaffiliated issuer at 3/31/2008.
|
|||
|
The
descriptions of the companies shown in the summary investment portfolio
are supplemental. These descriptions and the industry classifications were
obtained from published reports and other sources believed to be reliable,
and are not covered by the Report of Independent Registered Public
Accounting Firm.
|
|||
|
ADR =
American Depositary Receipts
|
|||
|
See Notes to
Financial Statements
|
|||
|
1.
|
Organization
and significant accounting policies
|
|
Share
class
|
Initial
sales charge
|
Contingent
deferred sales charge upon redemption
|
Conversion
feature
|
|
Class A and
529-A
|
Up to
5.75%
|
None (except
1% for certain redemptions within one year of purchase without an initial
sales charge)
|
None
|
|
Class B and
529-B
|
None
|
Declines from
5% to 0% for redemptions within six years of purchase
|
Class B and
529-B convert to Class A and 529-A, respectively, after eight
years
|
|
Class
C
|
None
|
1% for
redemptions within one year of purchase
|
Class C
converts to Class F after 10 years
|
|
Class
529-C
|
None
|
1% for
redemptions within one year of purchase
|
None
|
|
Class
529-E
|
None
|
None
|
None
|
|
Class F and
529-F
|
None
|
None
|
None
|
|
Class R-1,
R-2, R-3, R-4 and R-5
|
None
|
None
|
None
|
|
2.
|
Investments
outside the U.S.
|
|
(dollars in
thousands)
|
||
|
Undistributed
ordinary income
|
$197,144
|
|
|
Post-October
currency loss deferrals (realized during the period November 1, 2007,
through March 31, 2008)*
|
(19,047)
|
|
|
Undistributed
long-term capital gain
|
3,252,385
|
|
|
Gross
unrealized appreciation on investment securities
|
27,675,246
|
|
|
Gross
unrealized depreciation on investment securities
|
(3,099,166)
|
|
|
Net
unrealized appreciation on investment securities
|
24,576,080
|
|
|
Cost of
investment securities
|
89,690,213
|
|
Year ended
March 31, 2008
|
Year ended
March 31, 2007
|
|||||||||||||||||||||||
|
Ordinary
income
|
Long-term
capital
gains
|
Total
distributions
paid
|
Ordinary
income
|
Long-term
capital
gains
|
Total
distributions
paid
|
|||||||||||||||||||
|
Share
class
|
||||||||||||||||||||||||
|
Class
A
|
$ | 1,167,078 | $ | 4,213,545 | $ | 5,380,623 | $ | 1,530,317 | $ | 2,393,516 | $ | 3,923,833 | ||||||||||||
|
Class
B
|
23,244 | 131,749 | 154,993 | 35,100 | 71,445 | 106,545 | ||||||||||||||||||
|
Class
C
|
52,409 | 299,432 | 351,841 | 72,589 | 149,151 | 221,740 | ||||||||||||||||||
|
Class
F
|
195,993 | 709,861 | 905,854 | 222,669 | 348,654 | 571,323 | ||||||||||||||||||
|
Class
529-A
|
14,493 | 52,632 | 67,125 | 14,641 | 22,781 | 37,422 | ||||||||||||||||||
|
Class
529-B
|
1,259 | 7,566 | 8,825 | 1,724 | 3,610 | 5,334 | ||||||||||||||||||
|
Class
529-C
|
3,746 | 21,866 | 25,612 | 4,710 | 9,668 | 14,378 | ||||||||||||||||||
|
Class
529-E
|
720 | 3,077 | 3,797 | 816 | 1,402 | 2,218 | ||||||||||||||||||
|
Class
529-F
|
1,021 | 3,411 | 4,432 | 1,001 | 1,480 | 2,481 | ||||||||||||||||||
|
Class
R-1
|
2,306 | 12,678 | 14,984 | 2,647 | 5,054 | 7,701 | ||||||||||||||||||
|
Class
R-2
|
16,094 | 92,884 | 108,978 | 21,349 | 43,247 | 64,596 | ||||||||||||||||||
|
Class
R-3
|
127,609 | 542,968 | 670,577 | 156,894 | 268,161 | 425,055 | ||||||||||||||||||
|
Class
R-4
|
205,109 | 753,852 | 958,961 | 208,767 | 328,144 | 536,911 | ||||||||||||||||||
|
Class
R-5
|
417,988 | 1,338,858 | 1,756,846 | 387,070 | 560,229 | 947,299 | ||||||||||||||||||
|
Total
|
$ | 2,229,069 | $ | 8,184,379 | $ | 10,413,448 | $ | 2,660,294 | $ | 4,206,542 | $ | 6,866,836 | ||||||||||||
|
Share
class
|
Currently
approved limits
|
Plan
limits
|
|
Class
A
|
0.25%
|
0.25%
|
|
Class
529-A
|
0.25
|
0.50
|
|
Class B and
529-B
|
1.00
|
1.00
|
|
Class C,
529-C and R-1
|
1.00
|
1.00
|
|
Class
R-2
|
0.75
|
1.00
|
|
Class 529-E
and R-3
|
0.50
|
0.75
|
|
Class F,
529-F and R-4
|
0.25
|
0.50
|
|
Share
class
|
Distribution
services
|
Transfer
agent services
|
Administrative
services
|
||
|
CRMC
administrative services
|
Transfer
agent services
|
Commonwealth
of Virginia administrative services
|
|||
|
Class
A
|
$152,226
|
$48,274
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
B
|
18,598
|
1,204
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
C
|
41,216
|
Included
in
administrative
services
|
$4,239
|
$495
|
Not
applicable
|
|
Class
F
|
24,908
|
10,111
|
874
|
Not
applicable
|
|
|
Class
529-A
|
1,380
|
573
|
59
|
$730
|
|
|
Class
529-B
|
1,041
|
83
|
22
|
104
|
|
|
Class
529-C
|
2,978
|
234
|
51
|
298
|
|
|
Class
529-E
|
213
|
34
|
3
|
43
|
|
|
Class
529-F
|
-
|
37
|
4
|
47
|
|
|
Class
R-1
|
1,700
|
223
|
48
|
Not
applicable
|
|
|
Class
R-2
|
9,517
|
1,836
|
3,364
|
Not
applicable
|
|
|
Class
R-3
|
37,703
|
9,648
|
2,245
|
Not
applicable
|
|
|
Class
R-4
|
26,246
|
15,158
|
203
|
Not
applicable
|
|
|
Class
R-5
|
Not
applicable
|
16,910
|
94
|
Not
applicable
|
|
|
Total
|
$317,726
|
$49,478
|
$59,086
|
$7,462
|
$1,222
|
| Income from investment operations (1) | Dividends and distributions | |||||||||||||||
|
Net asset
value,
beginning
of
year
|
Net investment
income
|
Net gains on
securities
(both realized and unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Distributions
(from capital
gains)
|
Total
dividends and distributions
|
Net asset
value, end of year
|
Total return
(2) (3)
|
Net assets,
end of year (in millions)
|
Ratio of
expenses
to average
net assets
before
reim-bursements/
waivers
|
Ratio of
expenses to average net assets after reim-bursements/
waivers
(3)
|
Ratio of net
income to average net assets (3)
|
||||
|
Class
A:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
$47.92
|
$.95
|
$ |
2.60
|
$3.55
|
$(1.01)
|
$(3.63)
|
$(4.64)
|
$46.83
|
6.40%
|
$57,445
|
.79%
|
.74%
|
1.87%
|
||
|
Year
ended 3/31/2007
|
44.20
|
.71
|
6.49
|
7.20
|
(.77)
|
(2.71)
|
(3.48)
|
47.92
|
16.63
|
57,407
|
.79
|
.75
|
1.54
|
|||
|
Year
ended 3/31/2006
|
35.63
|
.62
|
9.99
|
10.61
|
(.72)
|
(1.32)
|
(2.04)
|
44.20
|
30.25
|
50,209
|
.81
|
.76
|
1.58
|
|||
|
Year
ended 3/31/2005
|
32.26
|
.43
|
3.45
|
3.88
|
(.51)
|
-
|
(.51)
|
35.63
|
12.08
|
37,515
|
.83
|
.82
|
1.31
|
|||
|
Year
ended 3/31/2004
|
20.78
|
.29
|
11.50
|
11.79
|
(.31)
|
-
|
(.31)
|
32.26
|
57.11
|
32,759
|
.87
|
.87
|
1.08
|
|||
|
Class
B:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.31
|
.56
|
2.54
|
3.10
|
(.64)
|
(3.63)
|
(4.27)
|
46.14
|
5.60
|
1,775
|
1.52
|
1.48
|
1.12
|
|||
|
Year
ended 3/31/2007
|
43.71
|
.35
|
6.42
|
6.77
|
(.46)
|
(2.71)
|
(3.17)
|
47.31
|
15.78
|
1,709
|
1.54
|
1.50
|
.78
|
|||
|
Year
ended 3/31/2006
|
35.29
|
.32
|
9.88
|
10.20
|
(.46)
|
(1.32)
|
(1.78)
|
43.71
|
29.32
|
1,394
|
1.55
|
1.51
|
.82
|
|||
|
Year
ended 3/31/2005
|
32.00
|
.18
|
3.41
|
3.59
|
(.30)
|
-
|
(.30)
|
35.29
|
11.24
|
954
|
1.58
|
1.56
|
.55
|
|||
|
Year
ended 3/31/2004
|
20.65
|
.08
|
11.41
|
11.49
|
(.14)
|
-
|
(.14)
|
32.00
|
55.95
|
737
|
1.62
|
1.62
|
.31
|
|||
|
Class
C:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
46.85
|
.53
|
2.53
|
3.06
|
(.64)
|
(3.63)
|
(4.27)
|
45.64
|
5.57
|
4,093
|
1.57
|
1.53
|
1.06
|
|||
|
Year
ended 3/31/2007
|
43.35
|
.31
|
6.35
|
6.66
|
(.45)
|
(2.71)
|
(3.16)
|
46.85
|
15.65
|
3,640
|
1.62
|
1.58
|
.69
|
|||
|
Year
ended 3/31/2006
|
35.04
|
.27
|
9.82
|
10.09
|
(.46)
|
(1.32)
|
(1.78)
|
43.35
|
29.21
|
2,697
|
1.64
|
1.60
|
.71
|
|||
|
Year
ended 3/31/2005
|
31.81
|
.14
|
3.40
|
3.54
|
(.31)
|
-
|
(.31)
|
35.04
|
11.16
|
1,546
|
1.67
|
1.65
|
.44
|
|||
|
Year
ended 3/31/2004
|
20.58
|
.06
|
11.37
|
11.43
|
(.20)
|
-
|
(.20)
|
31.81
|
55.76
|
939
|
1.70
|
1.70
|
.19
|
|||
|
Class
F:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.73
|
.92
|
2.60
|
3.52
|
(1.00)
|
(3.63)
|
(4.63)
|
46.62
|
6.38
|
10,328
|
.81
|
.77
|
1.81
|
|||
|
Year
ended 3/31/2007
|
44.05
|
.69
|
6.47
|
7.16
|
(.77)
|
(2.71)
|
(3.48)
|
47.73
|
16.59
|
8,639
|
.82
|
.78
|
1.50
|
|||
|
Year
ended 3/31/2006
|
35.52
|
.59
|
9.97
|
10.56
|
(.71)
|
(1.32)
|
(2.03)
|
44.05
|
30.22
|
6,686
|
.84
|
.80
|
1.50
|
|||
|
Year
ended 3/31/2005
|
32.18
|
.40
|
3.45
|
3.85
|
(.51)
|
-
|
(.51)
|
35.52
|
12.01
|
3,901
|
.90
|
.89
|
1.20
|
|||
|
Year
ended 3/31/2004
|
20.75
|
.27
|
11.48
|
11.75
|
(.32)
|
-
|
(.32)
|
32.18
|
57.02
|
2,449
|
.92
|
.92
|
.97
|
|||
|
Class
529-A:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.66
|
.90
|
2.60
|
3.50
|
(1.00)
|
(3.63)
|
(4.63)
|
46.53
|
6.34
|
789
|
.83
|
.79
|
1.78
|
|||
|
Year
ended 3/31/2007
|
44.00
|
.67
|
6.48
|
7.15
|
(.78)
|
(2.71)
|
(3.49)
|
47.66
|
16.59
|
601
|
.83
|
.79
|
1.45
|
|||
|
Year
ended 3/31/2006
|
35.49
|
.58
|
9.97
|
10.55
|
(.72)
|
(1.32)
|
(2.04)
|
44.00
|
30.21
|
387
|
.85
|
.80
|
1.47
|
|||
|
Year
ended 3/31/2005
|
32.15
|
.39
|
3.46
|
3.85
|
(.51)
|
-
|
(.51)
|
35.49
|
12.04
|
197
|
.91
|
.89
|
1.18
|
|||
|
Year
ended 3/31/2004
|
20.74
|
.27
|
11.47
|
11.74
|
(.33)
|
-
|
(.33)
|
32.15
|
57.00
|
104
|
.91
|
.91
|
.98
|
|||
|
Class
529-B:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
46.93
|
.48
|
2.53
|
3.01
|
(.60)
|
(3.63)
|
(4.23)
|
45.71
|
5.47
|
107
|
1.66
|
1.61
|
.97
|
|||
|
Year
ended 3/31/2007
|
43.42
|
.28
|
6.37
|
6.65
|
(.43)
|
(2.71)
|
(3.14)
|
46.93
|
15.60
|
90
|
1.67
|
1.63
|
.63
|
|||
|
Year
ended 3/31/2006
|
35.09
|
.25
|
9.82
|
10.07
|
(.42)
|
(1.32)
|
(1.74)
|
43.42
|
29.10
|
64
|
1.71
|
1.67
|
.64
|
|||
|
Year
ended 3/31/2005
|
31.86
|
.10
|
3.40
|
3.50
|
(.27)
|
-
|
(.27)
|
35.09
|
11.01
|
39
|
1.80
|
1.79
|
.30
|
|||
|
Year
ended 3/31/2004
|
20.61
|
.02
|
11.38
|
11.40
|
(.15)
|
-
|
(.15)
|
31.86
|
55.61
|
24
|
1.83
|
1.83
|
.06
|
|||
|
Class
529-C:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
46.87
|
.48
|
2.53
|
3.01
|
(.62)
|
(3.63)
|
(4.25)
|
45.63
|
5.47
|
317
|
1.65
|
1.61
|
.96
|
|||
|
Year
ended 3/31/2007
|
43.38
|
.28
|
6.37
|
6.65
|
(.45)
|
(2.71)
|
(3.16)
|
46.87
|
15.62
|
248
|
1.67
|
1.63
|
.62
|
|||
|
Year
ended 3/31/2006
|
35.08
|
.24
|
9.83
|
10.07
|
(.45)
|
(1.32)
|
(1.77)
|
43.38
|
29.11
|
164
|
1.70
|
1.66
|
.63
|
|||
|
Year
ended 3/31/2005
|
31.86
|
.10
|
3.40
|
3.50
|
(.28)
|
-
|
(.28)
|
35.08
|
11.02
|
88
|
1.79
|
1.78
|
.31
|
|||
|
Year
ended 3/31/2004
|
20.61
|
.02
|
11.39
|
11.41
|
(.16)
|
-
|
(.16)
|
31.86
|
55.66
|
50
|
1.82
|
1.82
|
.07
|
|||
|
Class
529-E:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.34
|
.74
|
2.57
|
3.31
|
(.85)
|
(3.63)
|
(4.48)
|
46.17
|
6.00
|
45
|
1.14
|
1.10
|
1.47
|
|||
|
Year
ended 3/31/2007
|
43.75
|
.52
|
6.43
|
6.95
|
(.65)
|
(2.71)
|
(3.36)
|
47.34
|
16.21
|
36
|
1.15
|
1.11
|
1.14
|
|||
|
Year
ended 3/31/2006
|
35.33
|
.45
|
9.91
|
10.36
|
(.62)
|
(1.32)
|
(1.94)
|
43.75
|
29.77
|
24
|
1.18
|
1.13
|
1.13
|
|||
|
Year
ended 3/31/2005
|
32.04
|
.28
|
3.43
|
3.71
|
(.42)
|
-
|
(.42)
|
35.33
|
11.63
|
12
|
1.26
|
1.24
|
.84
|
|||
|
Year
ended 3/31/2004
|
20.69
|
.17
|
11.44
|
11.61
|
(.26)
|
-
|
(.26)
|
32.04
|
56.45
|
7
|
1.28
|
1.28
|
.61
|
|||
|
Class
529-F:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
$47.65
|
$.99
|
2.62
|
$3.61
|
$(1.09)
|
$(3.63)
|
$(4.72)
|
$46.54
|
6.55%
|
$51
|
.64%
|
.60%
|
1.96%
|
|||
|
Year
ended 3/31/2007
|
43.98
|
.74
|
6.49
|
7.23
|
(.85)
|
(2.71)
|
(3.56)
|
47.65
|
16.79
|
39
|
.65
|
.61
|
1.61
|
|||
|
Year
ended 3/31/2006
|
35.45
|
.64
|
9.96
|
10.60
|
(.75)
|
(1.32)
|
(2.07)
|
43.98
|
30.39
|
23
|
.70
|
.66
|
1.63
|
|||
|
Year
ended 3/31/2005
|
32.13
|
.36
|
3.44
|
3.80
|
(.48)
|
-
|
(.48)
|
35.45
|
11.89
|
12
|
1.01
|
.99
|
1.09
|
|||
|
Year
ended 3/31/2004
|
20.74
|
.24
|
11.48
|
11.72
|
(.33)
|
-
|
(.33)
|
32.13
|
56.79
|
6
|
1.02
|
1.02
|
.82
|
|||
|
Class
R-1:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
46.71
|
.49
|
2.54
|
3.03
|
(.66)
|
(3.63)
|
(4.29)
|
45.45
|
5.52
|
190
|
1.61
|
1.57
|
.99
|
|||
|
Year
ended 3/31/2007
|
43.29
|
.28
|
6.38
|
6.66
|
(.53)
|
(2.71)
|
(3.24)
|
46.71
|
15.68
|
136
|
1.62
|
1.58
|
.61
|
|||
|
Year
ended 3/31/2006
|
35.04
|
.26
|
9.82
|
10.08
|
(.51)
|
(1.32)
|
(1.83)
|
43.29
|
29.16
|
66
|
1.65
|
1.61
|
.66
|
|||
|
Year
ended 3/31/2005
|
31.89
|
.11
|
3.43
|
3.54
|
(.39)
|
-
|
(.39)
|
35.04
|
11.18
|
29
|
1.72
|
1.68
|
.34
|
|||
|
Year
ended 3/31/2004
|
20.67
|
.04
|
11.41
|
11.45
|
(.23)
|
-
|
(.23)
|
31.89
|
55.72
|
8
|
1.82
|
1.71
|
.15
|
|||
|
Class
R-2:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
46.84
|
.50
|
2.54
|
3.04
|
(.63)
|
(3.63)
|
(4.26)
|
45.62
|
5.51
|
1,296
|
1.61
|
1.57
|
1.01
|
|||
|
Year
ended 3/31/2007
|
43.36
|
.30
|
6.35
|
6.65
|
(.46)
|
(2.71)
|
(3.17)
|
46.84
|
15.66
|
1,093
|
1.67
|
1.59
|
.66
|
|||
|
Year
ended 3/31/2006
|
35.07
|
.26
|
9.83
|
10.09
|
(.48)
|
(1.32)
|
(1.80)
|
43.36
|
29.20
|
735
|
1.76
|
1.60
|
.68
|
|||
|
Year
ended 3/31/2005
|
31.86
|
.14
|
3.41
|
3.55
|
(.34)
|
-
|
(.34)
|
35.07
|
11.17
|
375
|
1.90
|
1.64
|
.42
|
|||
|
Year
ended 3/31/2004
|
20.64
|
.05
|
11.40
|
11.45
|
(.23)
|
-
|
(.23)
|
31.86
|
55.78
|
174
|
2.08
|
1.67
|
.17
|
|||
|
Class
R-3:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.20
|
.78
|
2.54
|
3.32
|
(.85)
|
(3.63)
|
(4.48)
|
46.04
|
6.05
|
7,639
|
1.11
|
1.07
|
1.55
|
|||
|
Year
ended 3/31/2007
|
43.64
|
.52
|
6.41
|
6.93
|
(.66)
|
(2.71)
|
(3.37)
|
47.20
|
16.20
|
6,918
|
1.15
|
1.10
|
1.14
|
|||
|
Year
ended 3/31/2006
|
35.23
|
.46
|
9.89
|
10.35
|
(.62)
|
(1.32)
|
(1.94)
|
43.64
|
29.85
|
4,336
|
1.15
|
1.11
|
1.18
|
|||
|
Year
ended 3/31/2005
|
31.96
|
.30
|
3.42
|
3.72
|
(.45)
|
-
|
(.45)
|
35.23
|
11.68
|
2,321
|
1.18
|
1.16
|
.89
|
|||
|
Year
ended 3/31/2004
|
20.68
|
.15
|
11.45
|
11.60
|
(.32)
|
-
|
(.32)
|
31.96
|
56.46
|
1,052
|
1.29
|
1.29
|
.51
|
|||
|
Class
R-4:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.31
|
.88
|
2.60
|
3.48
|
(.99)
|
(3.63)
|
(4.62)
|
46.17
|
6.32
|
10,970
|
.85
|
.81
|
1.75
|
|||
|
Year
ended 3/31/2007
|
43.69
|
.64
|
6.45
|
7.09
|
(.76)
|
(2.71)
|
(3.47)
|
47.31
|
16.61
|
8,627
|
.87
|
.82
|
1.41
|
|||
|
Year
ended 3/31/2006
|
35.25
|
.57
|
9.91
|
10.48
|
(.72)
|
(1.32)
|
(2.04)
|
43.69
|
30.20
|
5,352
|
.87
|
.83
|
1.45
|
|||
|
Year
ended 3/31/2005
|
31.95
|
.39
|
3.44
|
3.83
|
(.53)
|
-
|
(.53)
|
35.25
|
12.04
|
2,668
|
.90
|
.88
|
1.17
|
|||
|
Year
ended 3/31/2004
|
20.63
|
.27
|
11.41
|
11.68
|
(.36)
|
-
|
(.36)
|
31.95
|
57.00
|
1,106
|
.92
|
.92
|
.92
|
|||
|
Class
R-5:
|
||||||||||||||||
|
Year
ended 3/31/2008
|
47.94
|
1.05
|
2.63
|
3.68
|
(1.13)
|
(3.63)
|
(4.76)
|
46.86
|
6.64
|
19,731
|
.55
|
.50
|
2.05
|
|||
|
Year
ended 3/31/2007
|
44.22
|
.78
|
6.53
|
7.31
|
(.88)
|
(2.71)
|
(3.59)
|
47.94
|
16.91
|
14,993
|
.57
|
.52
|
1.70
|
|||
|
Year
ended 3/31/2006
|
35.64
|
.69
|
10.02
|
10.71
|
(.81)
|
(1.32)
|
(2.13)
|
44.22
|
30.56
|
9,059
|
.58
|
.53
|
1.74
|
|||
|
Year
ended 3/31/2005
|
32.26
|
.50
|
3.47
|
3.97
|
(.59)
|
-
|
(.59)
|
35.64
|
12.38
|
4,507
|
.59
|
.58
|
1.51
|
|||
|
Year
ended 3/31/2004
|
20.78
|
.35
|
11.51
|
11.86
|
(.38)
|
-
|
(.38)
|
32.26
|
57.49
|
2,473
|
.61
|
.61
|
1.27
|
|||
|
Year ended
March 31
|
||||||||||||||||||||
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
|
Portfolio
turnover rate for all classes of shares
|
38 | % | 27 | % | 35 | % | 30 | % | 25 | % | ||||||||||
|
(1) Based on
average shares outstanding.
|
|
(2) Total
returns exclude any applicable sales charges, including contingent
deferred sales charges.
|
|
(3) This
column reflects the impact, if any, of certain reimbursements/waivers from
CRMC. During some of the years shown, CRMC reduced fees for investment
advisory services. In addition, during some of the years shown,
CRMC paid a portion of the fund's transfer agent fees for certain
retirement plan share classes.
|
|
See Notes to
Financial Statements
|
|
Tax
information
|
unaudited
|
|
Long-term
capital gains
|
$8,678,296,000
|
|
Foreign
taxes
|
$0.12 per
share
|
|
Foreign
source income
|
$1.28 per
share
|
|
Qualified
dividend income
|
100%
|
|
Corporate
dividends received deduction
|
$707,000
|
|
U.S.
government income that may be exempt from state taxation
|
$30,699,000
|
|
Item 23.
|
Exhibits for Registration
Statement
(1940 Act No. 811-03734 and 1933 Act. No.
002-83847
|
|
(a-1)
|
Declaration of Trust
-
Restatement of Declaration of Trust filed 3/5/84 - previously filed (see
Post-Effective (“P/E”) Amendment No. 17 filed 5/29/97); Establishment and
Designation of Additional Classes of Shares filed 1/13/00 - previously
filed (see P/E Amendment No. 21 filed 3/13/00); Establishment and
Designation of Additional Classes of Shares filed 1/26/01 - previously
filed (see P/E Amendment No. 23 filed 3/14/01); Establishment and
Designation of Additional Classes of Shares dated 1/18/02 - previously
filed (see P/E Amendment No. 25 filed 2/15/02); Certificate of Amendment
filed 3/27/84 – previously filed (see P/E Amendment No. 36 filed 6/30/08);
Establishment and Designation of Additional Class of Shares filed 5/23/08
– previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(a-2)
|
Establishment
and Designation of Additional Class of Shares filed
3/27/09
|
|
(b)
|
By-laws
– By-laws
as amended 6/7/07 – previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(c)
|
Instruments Defining Rights of
Security Holders
– Form of share certificate - previously filed
(see P/E Amendment No. 23 filed
3/14/01)
|
|
(d)
|
Investment Advisory
Contracts
– Amended Investment Advisory and Service Agreement
dated 12/4/07 – previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(e-1)
|
Underwriting Contracts
–
Form of Selling Group Agreement – previously filed (see P/E Amendment No.
26 filed 5/14/02); Form of Bank Selling Group Agreement – previously filed
(see P/E Amendment No. 26 filed 5/14/02); Form of Omnibus addendum to the
Selling Group Agreement (for retirement plan share classes (R shares) only
– previously filed (see P/E Amendment No. 26 filed 5/14/02); Form of
Institutional Selling Group Agreement – previously filed (see P/E
Amendment No. 26 filed 5/14/02); Form of Amendment to Selling Group
Agreement effective 11/1/06 – previously filed (see P/E Amendment No. 32
filed 6/1/07); Form of Amendment to Selling Group Agreement effective
2/1/07 – previously filed (see P/E Amendment No. 32 filed 6/1/07); Form of
Amendment to Institutional Selling Group Agreement effective 2/1/07 –
previously filed (see P/E Amendment No. 36 filed 6/30/08); and Form of
Amended and Restated Principal Underwriting Agreement effective 7/30/08 –
previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(e-2)
|
Form of
Amendment to Selling Group Agreement effective 10/1/08; Form of Amendment
to Selling Group Agreement effective 5/1/09; Form of Amendment to
Institutional Selling Group Agreement effective 10/1/08; Form of Amendment
to Institutional Selling Group Agreement effective 5/1/09; Form of
Amendment to Bank/Trust Company Selling Group Agreement effective 5/1/09;
Form of Class F Share Participation Agreement; Form of Amendment to Class
F Share Participation Agreement effective 8/1/08; Form of Amendment to
Class F Share Participation Agreement effective 5/1/09; Form of Bank/Trust
Company Participation Agreement for Class F Shares; Form of Amendment to
Bank/Trust Company Participation Agreement for Class F Shares effective
8/1/08; Form of Amendment to Bank/Trust Company Participation
Agreement for Class F Shares effective 5/1/09; and Form of Amended and
Restated Principal Underwriting Agreement effective
5/1/09
|
|
(f)
|
Bonus or Profit Sharing
Contracts
– Form of Deferred Compensation Plan effective 1/1/08 –
previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(g)
|
Custodian Agreements
–
Form of Global Custody Agreement effective 12/21/06 – previously
filed (see P/E Amendment No. 32 filed
6/1/07)
|
|
(h-1)
|
Other Material Contracts
– Form of Amended Shareholder Services Agreement effective 4/1/03 –
previously filed (see P/E Amendment No. 29 filed 5/28/04); Form of
Indemnification Agreement – previously filed (see P/E Amendment No. 30
filed 5/31/05); Form of Amendment of Amended Shareholder Services
Agreement dated 11/1/06 – previously filed (see P/E Amendment No. 32
filed 6/1/07); and Form of Amended and Restated Administrative Services
Agreement effective 7/30/08 – previously filed (see P/E Amendment No.
36 filed 6/30/08)
|
|
(h-2)
|
Form of
Amendment of Amended Shareholder Services Agreement dated 11/1/08; Form
Amended and Restated Administrative Services Agreement effective
5/1/09
|
|
(i-1)
|
Legal Opinion
– Legal
Opinion – previously filed (see P/E Amendment No. 17 filed 5/29/97,
P/E Amendment No. 21 filed 3/13/00, P/E Amendment No. 23 filed 3/14/01,
P/E Amendment No. 25 filed 2/15/02, P/E Amendment No. 26 filed 5/14/02 and
P/E Amendment No. 36 filed 6/30/08)
|
|
(i-2)
|
Legal
Opinion
|
|
(j)
|
Other Opinions
– Consent
of Independent Registered Public Accounting
Firm
|
|
(k)
|
Omitted Financial
Statements
- none
|
|
(l)
|
Initial Capital
Agreements
- none
|
|
(m)
|
Rule 12b-1 Plan
– Form
of Plan of Distribution for Class A dated 4/1/89 – previously filed (see
P/E Amendment No. 17 filed 5/29/97); Form of Plan of Distribution for
Class 529-A – previously filed (see P/E Amendment No. 25 filed 2/15/02);
Forms of Amended and Restated Plan of Distribution for Classes B, C, F,
529-B, 529-C, 529-E, 529-F, R-1, R-2, R-3 and R-4, dated 10/1/05 –
previously filed (see P/E Amendment No. 31 filed 5/31/06); and Forms of
Amendment to Plan of Distribution – Classes F-1 and 529-F-1 dated 6/16/08
– previously filed (see P/E Amendment No. 36 filed
6/30/08)
|
|
(n)
|
Rule 18f-3
– Form of
Amended and Restated Multiple Class Plan effective
5/1/09
|
|
(o)
|
Reserved
|
|
(1)
Name and Principal
Business Address
|
(2)
Positions and Offices
with Underwriter
|
(3)
Positions and Offices
with Registrant
|
|
|
LAO
|
E. Grant
Abramson
|
Vice
President
|
None
|
|
LAO
|
David L.
Abzug
|
Vice
President
|
None
|
|
LAO
|
William C.
Anderson
|
Vice
President
|
None
|
|
LAO
|
Robert B.
Aprison
|
Senior Vice
President
|
None
|
|
LAO
|
T. Patrick
Bardsley
|
Regional Vice
President
|
None
|
|
LAO
|
Shakeel A.
Barkat
|
Vice
President
|
None
|
|
LAO
|
Thomas M.
Bartow
|
Senior Vice
President
|
None
|
|
IRV
|
Carl R.
Bauer
|
Vice
President
|
None
|
|
LAO
|
Michelle A.
Bergeron
|
Senior Vice
President
|
None
|
|
LAO
|
J. Walter
Best, Jr.
|
Senior Vice
President
|
None
|
|
LAO
|
Roger J.
Bianco, Jr.
|
Regional Vice
President
|
None
|
|
LAO
|
John A.
Blanchard
|
Senior Vice
President
|
None
|
|
LAO
|
Randall L.
Blanchetti
|
Regional Vice
President
|
None
|
|
LAO
|
Gerard M.
Bockstie, Jr.
|
Regional Vice
President
|
None
|
|
LAO
|
Jonathan W.
Botts
|
Regional Vice
President
|
None
|
|
LAO
|
Bill
Brady
|
Senior Vice
President
|
None
|
|
LAO
|
Mick L.
Brethower
|
Senior Vice
President
|
None
|
|
LAO
|
C. Alan
Brown
|
Vice
President
|
None
|
|
IRV
|
William H.
Bryan
|
Regional Vice
President
|
None
|
|
LAO
|
Sheryl M.
Burford
|
Assistant
Vice President
|
None
|
|
IRV
|
J. Peter
Burns
|
Vice
President
|
None
|
|
LAO
|
Steven
Calabria
|
Vice
President
|
None
|
|
LAO
|
Thomas E.
Callahan
|
Regional Vice
President
|
None
|
|
SNO
|
Kathleen D.
Campbell
|
Vice
President
|
None
|
|
LAO
|
Matthew C.
Carlisle
|
Vice
President
|
None
|
|
LAO
|
Jason S.
Carlough
|
Regional Vice
President
|
None
|
|
LAO
|
Damian F.
Carroll
|
Vice
President
|
None
|
|
LAO
|
James D.
Carter
|
Regional Vice
President
|
None
|
|
LAO
|
Brian C.
Casey
|
Senior Vice
President
|
None
|
|
LAO
|
Victor C.
Cassato
|
Senior Vice
President
|
None
|
|
LAO
|
Christopher
J. Cassin
|
Senior Vice
President
|
None
|
|
LAO
|
Denise M.
Cassin
|
Director,
Senior Vice President and Director of AFIG and Dealer
Relations
|
None
|
|
LAO
|
David D.
Charlton
|
Director,
Senior Vice President and Director Individual Investor and Advisory
Business
|
None
|
|
LAO
|
Thomas M.
Charon
|
Vice
President
|
None
|
|
LAO
|
Wellington
Choi
|
Vice
President
|
None
|
|
LAO
|
Paul A.
Cieslik
|
Vice
President
|
None
|
|
LAO
|
Kevin G.
Clifford
|
Director,
President and
Chief
Executive Officer
|
None
|
|
HRO
|
Cheri
Coleman
|
Vice
President
|
None
|
|
LAO
|
Ruth M.
Collier
|
Director,
Senior Vice President
|
None
|
|
SNO
|
David
Coolbaugh
|
Vice
President
|
None
|
|
LAO
|
Carlo O.
Cordasco
|
Regional Vice
President
|
None
|
|
LAO
|
Charles H.
Cote
|
Regional Vice
President
|
None
|
|
LAO
|
Michael D.
Cravotta
|
Assistant
Vice President
|
None
|
|
LAO
|
Joseph G.
Cronin
|
Vice
President
|
None
|
|
LAO
|
D. Erick
Crowdus
|
Regional Vice
President
|
None
|
|
LAO
|
Christopher
J. Curran
|
Regional Vice
President
|
None
|
|
LAO
|
William F.
Daugherty
|
Vice
President
|
None
|
|
LAO
|
Peter J.
Deavan
|
Regional Vice
President
|
None
|
|
LAO
|
Guy E.
Decker
|
Vice
President
|
None
|
|
LAO
|
Daniel J.
Delianedis
|
Senior Vice
President
|
None
|
|
LAO
|
James W.
DeLouise
|
Assistant
Vice President
|
None
|
|
LAO
|
Jeffrey C.
Denny
|
Regional Vice
President
|
None
|
|
James A.
DePerno, Jr.
570
Porterville Road
East Aurora,
NY 14052
|
Senior Vice
President
|
None
|
|
|
LAO
|
Bruce L.
DePriester
|
Director,
Senior Vice
President,
Treasurer and
Controller
|
None
|
|
LAO
|
Lori A.
Deuberry
|
Regional Vice
President
|
None
|
|
LAO
|
Dianne M.
Dexter
|
Assistant
Vice President
|
None
|
|
LAO
|
Thomas J.
Dickson
|
Vice
President
|
None
|
|
LAO
|
Michael A.
DiLella
|
Senior Vice
President
|
None
|
|
NYO
|
Dean M.
Dolan
|
Vice
President
|
None
|
|
LAO
|
Hedy B.
Donahue
|
Assistant
Vice President
|
None
|
|
LAO
|
Michael J.
Downer
|
Director
|
Vice
President
|
|
LAO
|
Craig A.
Duglin
|
Regional Vice
President
|
None
|
|
LAO
|
Michael J.
Dullaghan
|
Vice
President
|
None
|
|
IND
|
Lloyd G.
Edwards
|
Senior Vice
President
|
None
|
|
LAO
|
Timothy L.
Ellis
|
Senior Vice
President
|
None
|
|
LAO
|
Kristopher A.
Feldmeyer
|
Regional Vice
President
|
None
|
|
LAO
|
Lorna
Fitzgerald
|
Vice
President
|
None
|
|
LAO
|
William F.
Flannery
|
Vice
President
|
None
|
|
LAO
|
John R.
Fodor
|
Director,
Executive Vice President
|
None
|
|
LAO
|
Charles L.
Freadhoff
|
Vice
President
|
None
|
|
LAO
|
Daniel B.
Frick
|
Vice
President
|
None
|
|
LAO
|
Linda S.
Gardner
|
Vice
President
|
None
|
|
LAO
|
Keith R.
George
|
Regional Vice
President
|
None
|
|
IRV
|
Lori A.
Giacomini
|
Assistant
Vice President
|
None
|
|
LAO
|
J.
Christopher Gies
|
Senior Vice
President
|
None
|
|
LAO
|
David M.
Givner
|
Secretary
|
None
|
|
LAO
|
Jack E.
Goldin
|
Regional Vice
President
|
None
|
|
LAO
|
Earl C.
Gottschalk
|
Vice
President
|
None
|
|
LAO
|
Jeffrey J.
Greiner
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Eric M.
Grey
|
Vice
President
|
None
|
|
NYO
|
Maura S.
Griffin
|
Assistant
Vice President
|
None
|
|
LAO
|
Christopher
M. Guarino
|
Senior Vice
President
|
None
|
|
IRV
|
Steven
Guida
|
Director,
Senior Vice President
|
None
|
|
IRV
|
Mariellen
Hamann
|
Vice
President
|
None
|
|
LAO
|
Derek S.
Hansen
|
Vice
President
|
None
|
|
LAO
|
Calvin L.
Harrelson, III
|
Vice
President
|
None
|
|
LAO
|
Robert J.
Hartig, Jr.
|
Vice
President
|
None
|
|
LAO
|
Craig W.
Hartigan
|
Regional Vice
President
|
None
|
|
LAO
|
Linda M.
Hines
|
Vice
President
|
None
|
|
LAO
|
Russell K.
Holliday
|
Vice
President
|
None
|
|
LAO
|
Heidi
Horwitz-Marcus
|
Regional Vice
President
|
None
|
|
LAO
|
Kevin B.
Hughes
|
Vice
President
|
None
|
|
LAO
|
Ronald R.
Hulsey
|
Senior Vice
President
|
None
|
|
LAO
|
Marc
Ialeggio
|
Vice
President
|
None
|
|
LAO
|
Robert S.
Irish
|
Senior Vice
President
|
None
|
|
HRO
|
Jill
Jackson-Chavis
|
Vice
President
|
None
|
|
IND
|
David K.
Jacocks
|
Assistant
Vice President
|
None
|
|
LAO
|
Krista M.
Johnson
|
Assistant
Vice President
|
None
|
|
LAO
|
Linda
Johnson
|
Vice
President
|
None
|
|
GVO-1
|
Joanna F.
Jonsson
|
Director
|
None
|
|
IRV
|
Damien M.
Jordan
|
Senior Vice
President
|
None
|
|
LAO
|
Marc J.
Kaplan
|
Vice
President
|
None
|
|
LAO
|
John P.
Keating
|
Senior Vice
President
|
None
|
|
LAO
|
Brian G.
Kelly
|
Regional Vice
President
|
None
|
|
LAO
|
Ryan C.
Kidwell
|
Regional Vice
President
|
None
|
|
LAO
|
Andrew J.
Kilbride
|
Vice
President
|
None
|
|
LAO
|
Mark
Kistler
|
Regional Vice
President
|
None
|
|
NYO
|
Dorothy
Klock
|
Vice
President
|
None
|
|
LAO
|
Dianne L.
Koske
|
Vice
President
|
None
|
|
IRV
|
Elizabeth K.
Koster
|
Vice
President
|
None
|
|
LAO
|
Christopher
F. Lanzafame
|
Regional Vice
President
|
None
|
|
LAO
|
Patricia D.
Lathrop
|
Regional Vice
President
|
None
|
|
IRV
|
Laura
Lavery
|
Vice
President
|
None
|
|
R. Andrew
LeBlanc
78 Eton
Road
Garden City,
NY 11530
|
Vice
President
|
None
|
|
|
LAO
|
Clay M.
Leveritt
|
Regional Vice
President
|
None
|
|
LAO
|
Susan B.
Lewis
|
Assistant
Vice President
|
None
|
|
LAO
|
T. Blake
Liberty
|
Vice
President
|
None
|
|
LAO
|
Mark J.
Lien
|
Vice
President
|
None
|
|
LAO
|
Lorin E.
Liesy
|
Vice
President
|
None
|
|
LAO
|
Louis K.
Linquata
|
Vice
President
|
None
|
|
HRO
|
Maria M.
Lockard
|
Assistant
Vice President
|
None
|
|
Brendan T.
Mahoney
1 Union
Avenue, Suite One
Sudbury, MA
01776
|
Vice
President
|
None
|
|
|
LAO
|
Nathan G.
Mains
|
Regional Vice
President
|
None
|
|
Stephen A.
Malbasa
13405 Lake
Shore Blvd.
Cleveland,
OH 44110
|
Director,
Senior Vice President and Director of Retirement Plan
Business
|
None
|
|
|
LAO
|
Paul R.
Mayeda
|
Assistant
Vice President
|
None
|
|
LAO
|
Eleanor P.
Maynard
|
Vice
President
|
None
|
|
LAO
|
Christopher
McCarthy
|
Vice
President
|
None
|
|
LAO
|
James R.
McCrary
|
Vice
President
|
None
|
|
LAO
|
Joseph A.
McCreesh, III
|
Regional Vice
President
|
None
|
|
LAO
|
Will
McKenna
|
Vice
President
|
None
|
|
SNO
|
John V.
McLaughlin
|
Senior Vice
President
|
None
|
|
LAO
|
Scott M.
Meade
|
Senior Vice
President
|
None
|
|
LAO
|
Daniel P.
Melehan
|
Regional Vice
President
|
None
|
|
LAO
|
William T.
Mills
|
Regional Vice
President
|
None
|
|
LAO
|
James R.
Mitchell III
|
Regional Vice
President
|
None
|
|
LAO
|
Charles L.
Mitsakos
|
Regional Vice
President
|
None
|
|
LAO
|
Monty L.
Moncrief
|
Vice
President
|
None
|
|
LAO
|
David H.
Morrison
|
Regional Vice
President
|
None
|
|
LAO
|
Andrew J.
Moscardini
|
Vice
President
|
None
|
|
LAO
|
Brian D.
Munson
|
Regional Vice
President
|
None
|
|
LAO
|
Jack
Nitowitz
|
Assistant
Vice President
|
None
|
|
LAO
|
William E.
Noe
|
Senior Vice
President
|
None
|
|
LAO
|
Matthew P.
O’Connor
|
Vice
President
|
None
|
|
LAO
|
Jonathan H.
O’Flynn
|
Regional Vice
President
|
None
|
|
LAO
|
Eric P.
Olson
|
Senior Vice
President
|
None
|
|
LAO
|
Jeffrey A.
Olson
|
Vice
President
|
None
|
|
LAO
|
Thomas A.
O’Neil
|
Regional Vice
President
|
None
|
|
LAO
|
Shawn M.
O’Sullivan
|
Regional Vice
President
|
None
|
|
LAO
|
Michael W.
Pak
|
Regional Vice
President
|
None
|
|
LAO
|
W. Burke
Patterson, Jr.
|
Vice
President
|
None
|
|
LAO
|
Gary A.
Peace
|
Senior Vice
President
|
None
|
|
LAO
|
Samuel W.
Perry
|
Vice
President
|
None
|
|
LAO
|
Raleigh G.
Peters
|
Regional Vice
President
|
None
|
|
LAO
|
David K.
Petzke
|
Senior Vice
President
|
None
|
|
IRV
|
John H.
Phelan, Jr.
|
Director
|
None
|
|
LAO
|
Fredric
Phillips
|
Senior Vice
President
|
None
|
|
LAO
|
John
Pinto
|
Vice
President
|
None
|
|
LAO
|
Carl S.
Platou
|
Senior Vice
President
|
None
|
|
LAO
|
Charles R.
Porcher
|
Regional Vice
President
|
None
|
|
LAO
|
Julie K.
Prather
|
Vice
President
|
None
|
|
SNO
|
Richard P.
Prior
|
Vice
President
|
None
|
|
LAO
|
Steven J.
Quagrello
|
Regional Vice
President
|
None
|
|
LAO
|
Mike
Quinn
|
Vice
President
|
None
|
|
LAO
|
John W.
Rankin
|
Regional Vice
President
|
None
|
|
LAO
|
Jennifer D.
Rasner
|
Regional Vice
President
|
None
|
|
LAO
|
James P.
Rayburn
|
Regional Vice
President
|
None
|
|
LAO
|
Rene M.
Reincke
|
Vice
President
|
None
|
|
LAO
|
Mark S.
Reischmann
|
Regional Vice
President
|
None
|
|
LAO
|
Steven J.
Reitman
|
Senior Vice
President
|
None
|
|
LAO
|
Brian A.
Roberts
|
Vice
President
|
None
|
|
LAO
|
Jeffrey
Robinson
|
Regional Vice
President
|
None
|
|
LAO
|
Suzette M.
Rothberg
|
Regional Vice
President
|
None
|
|
LAO
|
James F.
Rothenberg
|
Non-Executive
Chairman and Director
|
None
|
|
LAO
|
Romolo D.
Rottura
|
Vice
President
|
None
|
|
LAO
|
Douglas F.
Rowe
|
Senior Vice
President
|
None
|
|
LAO
|
William M.
Ryan
|
Regional Vice
President
|
None
|
|
LAO
|
Dean B.
Rydquist
|
Director,
Senior Vice
President,
Chief
Compliance Officer
|
None
|
|
LAO
|
Richard A.
Sabec, Jr.
|
Vice
President
|
None
|
|
LAO
|
Richard R.
Samson
|
Senior Vice
President
|
None
|
|
HRO
|
Diane
Sawyer
|
Senior Vice
President
|
None
|
|
LAO
|
Joseph D.
Scarpitti
|
Senior Vice
President
|
None
|
|
LAO
|
Kim D.
Schmidt
|
Assistant
Vice President
|
None
|
|
LAO
|
Shane D.
Schofield
|
Vice
President
|
None
|
|
LAO
|
David L.
Schroeder
|
Assistant
Vice President
|
None
|
|
LAO
|
Mark A.
Seaman
|
Vice
President
|
None
|
|
SNO
|
Sherrie L.
Senft
|
Vice
President
|
None
|
|
LAO
|
James J.
Sewell III
|
Regional Vice
President
|
None
|
|
LAO
|
Arthur M.
Sgroi
|
Vice
President
|
None
|
|
LAO
|
Steven D.
Shackelford
|
Regional Vice
President
|
None
|
|
LAO
|
R. Michael
Shanahan
|
Director
|
None
|
|
LAO
|
Michael J.
Sheldon
|
Vice
President
|
None
|
|
LAO
|
Frederic J.
Shipp
|
Regional Vice
President
|
None
|
|
LAO
|
Daniel S.
Shore
|
Vice
President
|
None
|
|
LAO
|
Brad
Short
|
Vice
President
|
None
|
|
LAO
|
Nathan W.
Simmons
|
Regional Vice
President
|
None
|
|
LAO
|
William P.
Simon, Jr.
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Connie F.
Sjursen
|
Vice
President
|
None
|
|
LAO
|
Jerry L.
Slater
|
Senior Vice
President
|
None
|
|
LAO-W
|
John H.
Smet
|
Director
|
None
|
|
LAO
|
Rodney G.
Smith
|
Senior Vice
President
|
None
|
|
SNO
|
Stacy D.
Smolka
|
Assistant
Vice President
|
None
|
|
LAO
|
J. Eric
Snively
|
Regional Vice
President
|
None
|
|
LAO
|
Anthony L.
Soave
|
Vice
President
|
None
|
|
LAO
|
Therese L.
Soullier
|
Vice
President
|
None
|
|
LAO
|
Nicholas D.
Spadaccini
|
Senior Vice
President
|
None
|
|
LAO
|
Kristen J.
Spazafumo
|
Vice
President
|
None
|
|
LAO
|
Mark D.
Steburg
|
Vice
President
|
None
|
|
LAO
|
Michael P.
Stern
|
Regional Vice
President
|
None
|
|
LAO
|
Brad
Stillwagon
|
Vice
President
|
None
|
|
LAO
|
Thomas A.
Stout
|
Vice
President
|
None
|
|
LAO
|
Craig R.
Strauser
|
Senior Vice
President
|
None
|
|
LAO
|
Libby J.
Syth
|
Vice
President
|
None
|
|
LAO
|
Drew W.
Taylor
|
Senior Vice
President
|
None
|
|
LAO
|
Larry I.
Thatt
|
Assistant
Vice President
|
None
|
|
LAO
|
Gary J.
Thoma
|
Vice
President
|
None
|
|
LAO
|
Cynthia M.
Thompson
|
Vice
President
|
None
|
|
LAO
|
David R.
Therrien
|
Assistant
Vice President
|
None
|
|
LAO
|
John B.
Thomas
|
Regional Vice
President
|
None
|
|
LAO
|
Mark R.
Threlfall
|
Regional Vice
President
|
None
|
|
LAO
|
David
Tippets
|
Regional Vice
President
|
None
|
|
IND
|
James P.
Toomey
|
Vice
President
|
None
|
|
LAO
|
Luke N.
Trammel
|
Regional Vice
President
|
None
|
|
IND
|
Christopher
E. Trede
|
Vice
President
|
None
|
|
LAO
|
Scott W.
Ursin-Smith
|
Director,
Senior Vice President
|
None
|
|
SNO
|
Cindy
Vaquiax
|
Vice
President
|
None
|
|
LAO
|
Srinkanth
Vemuri
|
Regional Vice
President
|
None
|
|
LAO
|
J. David
Viale
|
Senior Vice
President
|
None
|
|
DCO
|
Bradley J.
Vogt
|
Director
|
None
|
|
LAO
|
Sherrie S.
Walling
|
Assistant
Vice President
|
None
|
|
SNO
|
Chris L.
Wammack
|
Assistant
Vice President
|
None
|
|
LAO
|
Thomas E.
Warren
|
Senior Vice
President
|
None
|
|
LAO
|
Gregory J.
Weimer
|
Senior Vice
President
|
None
|
|
SFO
|
Gregory W.
Wendt
|
Director
|
None
|
|
LAO
|
George J.
Wenzel
|
Vice
President
|
None
|
|
LAO
|
Jason M.
Weybrecht
|
Regional Vice
President
|
None
|
|
LAO
|
Brian E.
Whalen
|
Vice
President
|
None
|
|
LAO
|
William C.
Whittington
|
Regional Vice
President
|
None
|
|
LAO
|
N. Dexter
Williams, Jr.
|
Senior Vice
President
|
None
|
|
LAO
|
Alan J.
Wilson
|
Director
|
None
|
|
LAO
|
Andrew L.
Wilson
|
Vice
President
|
None
|
|
LAO
|
Steven C.
Wilson
|
Regional Vice
President
|
None
|
|
LAO
|
Timothy J.
Wilson
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Kurt A.
Wuestenberg
|
Vice
President
|
None
|
|
William R.
Yost
9463 Olympia
Drive
Eden Prairie,
MN 55347
|
Senior Vice
President
|
None
|
|
|
LAO
|
Jason P.
Young
|
Vice
President
|
None
|
|
LAO
|
Jonathan A.
Young
|
Regional Vice
President
|
None
|
|
DCO
|
Business
Address, 3000 K Street N.W., Suite 230, Washington, DC
20007-5140
|
|
GVO-1
|
Business
Address, 3 Place des Bergues, 1201 Geneva, Switzerland
|
|
HRO
|
Business
Address, 5300 Robin Hood Road, Norfolk, VA 23513
|
|
IND
|
Business
Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN
46240
|
|
IRV
|
Business
Address, 6455 Irvine Center Drive, Irvine, CA 92618
|
|
LAO
|
Business
Address, 333 South Hope Street, Los Angeles,
CA 90071
|
|
LAO-W
|
Business
Address, 11100 Santa Monica Blvd., 15th Floor, Los Angeles,
CA 90025
|
|
NYO
|
Business
Address, 630 Fifth Avenue, 36
th
Floor, New York, NY 10111
|
|
SFO
|
Business
Address, One Market, Steuart Tower, Suite 1800, San Francisco, CA
94105
|
|
SNO
|
Business
Address, 3500 Wiseman Boulevard, San Antonio,
TX 78251
|
|
Signature
|
Title
|
|
|
(1)
|
Principal
Executive Officer:
|
|
|
/s/
Gina H.
Despres
|
Vice Chairman
and Trustee
|
|
|
(Gina H.
Despres)
|
||
|
(2)
|
Principal
Financial Officer and Principal Accounting Officer:
|
|
|
/s/
Bryan K.
Nielsen
|
Treasurer
|
|
|
(Bryan K.
Nielsen)
|
||
|
(3)
|
Trustees:
|
|
|
Elisabeth
Allison*
|
Trustee
|
|
|
Vanessa C.L.
Chang*
|
Trustee
|
|
|
/s/ Mark E. Denning
|
President and
Trustee
|
|
|
(Mark E.
Denning)
|
||
|
/s/ Gina H. Despres
|
Vice Chairman
and Trustee
|
|
|
(Gina H.
Despres)
|
||
|
Nicholas
Donatiello*
|
Trustee
|
|
|
Robert A.
Fox*
|
Trustee
|
|
|
Koichi
Itoh*
|
Trustee
|
|
|
William H.
Kling*
|
Trustee
|
|
|
John G.
McDonald*
|
Trustee
|
|
|
William I.
Miller*
|
Chairman of
the Board (Independent and Non-Executive)
|
|
|
Alessandro
Ovi*
|
Trustee
|
|
|
Kirk P.
Pendleton*
|
Trustee
|
|
|
Rozanne L.
Ridgway*
|
Trustee
|
|
|
*By:
/s/ Vincent P. Corti
|
||
|
(Vincent P.
Corti, pursuant to a power of attorney filed
herewith)
|
||
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
-
|
American
Balanced Fund, Inc. (File No. 002-10758, File No.
811-00066)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund, Inc. (File No. 333-152323, File No.
811-22215)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Bryan K.
Nielsen
Jeffrey P.
Regal
|
|
-
|
Capital
Income Builder, Inc. (File No. 033-12967, File No.
811-05085)
|
|
-
|
Capital World
Growth and Income Fund, Inc. (File No. 033-54444, File No.
811-07338)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
Jeffrey P.
Regal
|
|
-
|
AMCAP Fund,
Inc. (File No. 002-26516, File No.
811-01435)
|
|
-
|
American
Mutual Fund, Inc. (File No. 002-10607, File No.
811-00572)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
The New
Economy Fund (File No. 002-83848, File No.
811-03735)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
-
|
SMALLCAP
World Fund, Inc. (File No. 033-32785, File No.
811-05888)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Karl C.
Grauman
Bryan K.
Nielsen
David A.
Pritchett
|
|
-
|
American
Balanced Fund, Inc. (File No. 002-10758, File No.
811-00066)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund, Inc. (File No. 333-152323, File No.
811-22215)
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Bryan K.
Nielsen
Jeffrey P.
Regal
Carmelo
Spinella
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
-
|
AMCAP Fund,
Inc. (File No. 002-26516, File No.
811-01435)
|
|
-
|
American
Funds Insurance Series (File No. 002-86838, File No.
811-03857)
|
|
-
|
American
Funds Target Date Retirement Series, Inc. (File No. 333-138648, File No.
811-21981)
|
|
-
|
American
Mutual Fund, Inc. (File No. 002-10607, File No.
811-00572)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105).
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Brian D.
Bullard
Karl C.
Grauman
Bryan K.
Nielsen
David A.
Pritchett
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Tanya
Schneider
Courtney R.
Taylor
|
Bryan K.
Nielsen
|
|
/s/ Elisabeth
Allison
Elisabeth
Allison, as Trustee
/s/ Vanessa C.L.
Chang
Vanessa C.L.
Chang, as Trustee
/s/ Mark E.
Denning
Mark E.
Denning, as Trustee
/s/ Gina H.
Despre
Gina H.
Despres, as Trustee
/s/ Nicholas Donatiello,
Jr.
Nicholas
Donatiello, Jr., as Trustee
/s/ Robert A.
Fox
Robert A.
Fox, as Trustee
/s/ Koichi
Itoh
Koichi Itoh,
as Trustee
|
/s/ William H.
Kling
William H.
Kling, as Trustee
/s/ John G.
McDonald
John G.
McDonald, as Trustee
/s/ William I.
Miller
William I.
Miller, as Trustee
/s/ Alessandro
Ovi
Alessandro
Ovi, as Trustee
Kirk P.
Pendleton, as Trustee
/s/ Rozanne L.
Ridgway
Rozanne L.
Ridgway, as Trustee
|
|
|
American
Funds Distributors, Inc.
|
|
1.
|
The existing
Schedule A to the Agreement is replaced in its entirety by the new
Schedule A attached hereto.
|
|
A
|
B
|
C
|
529-A
|
529-B
|
529-C
|
529-E
|
R-1
|
R-2
|
R-3
|
R-4
|
R-5
|
|
|
Category
1
|
||||||||||||
|
AMCAP
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Balanced Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Funds Target Date Retirement Series
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
|
American
Mutual Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital
Income Builder
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Growth and Income Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
EuroPacific
Growth Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Fundamental
Investors
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The Growth
Fund of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The Income
Fund of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
International
Growth and Income Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The
Investment Company of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The New
Economy Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New
Perspective Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New World
Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
SMALLCAP
World Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Washington
Mutual Investors Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
2
|
||||||||||||
|
American
High-Income Trust
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
High-Income Municipal Bond Fund
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
The Bond Fund
of America
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Bond Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The
Tax-Exempt Bond Fund of America
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
The
Tax-Exempt Fund of California
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
The
Tax-Exempt Fund of Maryland
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
The
Tax-Exempt Fund of Virginia
|
l
|
l
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
U.S.
Government Securities Fund
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
3
|
||||||||||||
|
Intermediate
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Limited Term
Tax-Exempt Bond Fund of America
|
l
|
e
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Short-Term
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
4
|
||||||||||||
|
The Cash
Management Trust of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
|
The
Tax-Exempt Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
The U.S.
Treasury Money Fund of America
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
|
|
[logo –
American Funds ®]
|
|
|
American
Funds Distributors, Inc.
|
|
1.
|
The paragraph
titled “Compensation on Sales of Class B Shares and Class 529-B Shares” is
deleted in its entirety.
|
|
2.
|
The following
provisions are added to the
Agreement:
|
|
·
|
Payments of
12b-1 fees to you for payment to your financial advisers in respect of
American Funds Money Market Fund are currently
suspended. Payments may resume at a future date, if the fund’s
investment adviser determines, in its sole discretion, that the yield on
the fund’s portfolio securities supports such
payments.
|
|
·
|
Each party to
this Agreement agrees to comply with all applicable laws, including
applicable state privacy laws.
|
|
·
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
3.
|
The following
is added to the paragraph titled “Retirement Plan Share Classes (R shares)
and Account Options (for retirement plans
only)”:
|
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-6
|
No
compensation paid
|
|
4.
|
The paragraph
titled “Mutual Funds Sold Through PlanPremier” is deleted and replaced
with the following paragraph:
|
|
Eligible
Plan Assets
1
|
Annual
Compensation Rate
|
|
Eligible
Plan Assets that include American Funds Class R-2 shares
|
0.65%
|
|
Eligible
Plan Assets that include American Funds Class R-3 shares
|
0.35%
|
|
Eligible
Plan Assets that include American Funds Class R-4 shares
|
0.20%
|
|
Eligible
Plan Assets that include American Funds Class R-5 shares
|
No
compensation paid
|
|
Eligible
Plan Assets that include American Funds Class R-6 shares
|
No
compensation paid
|
|
5.
|
The existing
Schedule A to the Agreement is replaced in its entirety by the new
Schedule A attached hereto.
|
|
l
|
Share
class is available
|
c
|
Fund
closed to new investors
|
|
e
|
Share
class is available for exchanges only
|
na
|
Share
class is not available
|
|
[logo –
American Funds®]
|
|
|
American
Funds Distributors, Inc.
|
|
Category
1
AMCAP
Fund
American
Balanced Fund
American
Mutual Fund
Capital
Income Builder
Capital World
Growth and Income Fund
EuroPacific
Growth Fund
Fundamental
Investors
The Growth
Fund of America
The Income
Fund of America
The
Investment Company of America
International
Growth and Income Fund
The New
Economy Fund
New
Perspective Fund
New World
Fund
SMALLCAP
World Fund
Washington
Mutual Investors Fund
|
Category
2
American
High-Income Trust
The Bond Fund
of America
Capital World
Bond Fund
Intermediate
Bond Fund of America
Short-Term
Bond Fund of America
U.S.
Government Securities Fund
Category
3
The Cash
Management Trust of America
U.S. Treasury
Money Fund of America
|
|
|
[logo –
American Funds ®]
|
|
|
American
Funds Distributors, Inc.
|
|
1.
|
The following
provisions are added to the
Agreement:
|
|
·
|
Payments of
12b-1 fees to you for payment to your financial advisers in respect of
American Funds Money Market Fund are currently
suspended. Payments may resume at a future date, if the fund’s
investment adviser determines, in its sole discretion, that the yield on
the fund’s portfolio securities supports such
payments.
|
|
·
|
Each party to
this Agreement agrees to comply with all applicable laws, including
applicable state privacy laws.
|
|
·
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
2.
|
The following
is added to the paragraph titled “Retirement Plan Share Classes (R shares)
and Account Options (for retirement plans
only)”:
|
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-6
|
No
compensation paid
|
|
3.
|
The paragraph
titled “Mutual Funds Sold Through PlanPremier” is deleted and replaced
with the following paragraph:
|
|
Eligible
Plan Assets
1
|
Annual
Compensation Rate
|
|
Eligible Plan
Assets that include American Funds Class R-2 shares
|
0.65%
|
|
Eligible Plan
Assets that include American Funds Class R-3 shares
|
0.35%
|
|
Eligible Plan
Assets that include American Funds Class R-4 shares
|
0.20%
|
|
Eligible Plan
Assets that include American Funds Class R-5 shares
|
No
compensation paid
|
|
Eligible Plan
Assets that include American Funds Class R-6 shares
|
No
compensation paid
|
|
4.
|
The existing
Schedule A to the Agreement is replaced in its entirety by the new
Schedule A attached hereto.
|
|
Category
1
AMCAP
Fund
American
Balanced Fund
American
Funds Target Date Retirement Series
American
Mutual Fund
Capital
Income Builder
Capital World
Growth and Income Fund
EuroPacific
Growth Fund
Fundamental
Investors
The Growth
Fund of America
The Income
Fund of America
The
Investment Company of America
International
Growth and Income Fund
The New
Economy Fund
New
Perspective Fund
New World
Fund
SMALLCAP
World Fund
Washington
Mutual Investors Fund
|
Category
2
American
High-Income Trust
The Bond Fund
of America
Capital World
Bond Fund
Intermediate
Bond Fund of America
Short-Term
Bond Fund of America
U.S.
Government Securities Fund
Category
3
American
Funds Money Market Fund
The Cash
Management Trust of America*
U.S. Treasury
Money Fund of America*
|
|
1.
|
The paragraph
titled “Compensation on Sales of Class B Shares and Class 529-B Shares” is
deleted in its entirety.
|
|
2.
|
The following
provisions are added to the
Agreement:
|
|
·
|
Payments of
12b-1 fees to you for payment to your financial advisers in respect of
American Funds Money Market Fund are currently
suspended. Payments may resume at a future date, if the fund’s
investment adviser determines, in its sole discretion, that the yield on
the fund’s portfolio securities supports such
payments.
|
|
·
|
Each party to
this Agreement agrees to comply with all applicable laws, including
applicable state privacy laws.
|
|
·
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
·
|
The following
is added to the paragraph titled “Retirement Plan Share Classes (R shares)
and Account Options (for retirement plans
only)”:
|
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-6
|
No
compensation paid
|
|
3.
|
The paragraph
titled “Mutual Funds Sold Through PlanPremier” is deleted and replaced
with the following paragraph:
|
|
Eligible
Plan Assets
1
|
Annual
Compensation Rate
|
|
Eligible Plan
Assets that include American Funds Class R-2 shares
|
0.65%
|
|
Eligible Plan
Assets that include American Funds Class R-3 shares
|
0.35%
|
|
Eligible Plan
Assets that include American Funds Class R-4 shares
|
0.20%
|
|
Eligible Plan
Assets that include American Funds Class R-5 shares
|
No
compensation paid
|
|
Eligible Plan
Assets that include American Funds Class R-6 shares
|
No
compensation paid
|
|
4.
|
The existing
Schedule A to the Agreement is replaced in its entirety by the new
Schedule A attached hereto.
|
|
l
|
Share
class is available
|
c
|
Fund
closed to new investors
|
|
e
|
Share
class is available for exchanges only
|
na
|
Share
class is not available
|
|
[logo
– American Funds ®]
|
|
|
American
Funds Distributors, Inc.
|
|
|
333 South
Hope Street
|
|
1.
|
Authorization to
Sell
|
|
2.
|
Compensation for Sales
of Fund Shares
|
|
3.
|
Compensation for
Administrative Services
|
|
4.
|
Order
Processing
|
|
5.
|
Timeliness of
Submitting Orders
|
|
6.
|
Processing Redemption
Requests
|
|
7.
|
Prospectuses and
Marketing Materials
|
|
8.
|
Effect of
Prospectus
|
|
9.
|
Relationship of
Parties
|
|
10.
|
State Securities
Qualification
|
|
11.
|
Representations
|
|
12.
|
Termination
|
|
13.
|
Notices
|
|
Very truly
yours,
|
|
|
Accepted:
|
|
|
AMERICAN FUNDS DISTRIBUTORS,
INC
.
|
|
|
By:
|
|
|
Firm
|
|
|
By:
|
By:
|
|
Officer or
Partner
|
Kevin G.
Clifford
|
|
President
|
|
|
Address:
|
|
|
Date:
|
|
1.
|
All
references to
"
Class F shares
"
or
"
Shares
"
shall refer to both
Class F-1 shares and Class F-2 shares, unless otherwise
provided.
|
|
American
Funds Distributors, Inc.
|
|
·
|
If you offer
American Funds Money Market Fund, you acknowledge and agree that we may
discontinue making payments of 12b-1 fees in respect of American Funds
Money Market Fund if the fund’s investment adviser determines, in its sole
discretion, that the yield on the fund’s portfolio securities does not
support such payments. We currently intend to make these payments under
this Agreement.
|
|
·
|
Each party to
this Agreement agrees to comply with all applicable laws, including
applicable state privacy laws.
|
|
·
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
2.
|
The list of
funds on Schedule A to the Agreement is replaced in its entirety with the
following list:
|
|
AMCAP
Fund
|
Investment
Company of America
|
|
American
Balanced Fund
|
Intermediate
Bond Fund of America
|
|
American
Funds Money Market Fund
|
International
Growth and Income Fund
|
|
American
High-Income Municipal Bond Fund
|
Limited Term
Tax-Exempt Bond Fund of America
|
|
American
High-Income Trust
|
New Economy
Fund
|
|
American
Mutual Fund
|
New
Perspective Fund
|
|
Bond Fund of
America
|
New World
Fund
|
|
Capital
Income Builder
|
Short-Term
Bond Fund of America
|
|
Capital World
Growth and Income Fund
|
SMALLCAP
World Fund
|
|
Capital World
Bond Fund
|
Tax-Exempt
Bond Fund of America
|
|
Cash
Management Trust of America*
|
Tax-Exempt
Fund of California
|
|
EuroPacific
Growth Fund
|
Tax-Exempt
Fund of Maryland
|
|
Fundamental
Investors
|
Tax-Exempt
Fund of Virginia
|
|
Growth Fund
of America
|
U.S.
Government Securities Fund
|
|
Income Fund
of America
|
Washington
Mutual Investors Fund
|
|
a.
|
You may offer
to non-retirement plan Clients that are participating in the Program Class
F shares of the Funds only at the regular public price currently
determined by the respective Funds in the manner described in their
offering Prospectuses. The offering Prospectuses and this
Agreement set forth the terms applicable to sales of shares of the Funds
through you and all other representations or documents are
subordinate. In placing orders for the purchase and sale of
shares of the Funds, you will be acting as agent for your
customers. We shall execute transactions for each of your
customers only upon your authorization. If you will be making
the Funds available to retirement plan Clients, you may not use the Class
F shares, but rather only the Class R shares may be used. The
terms of your American Funds Bank/Trust Company Selling Group Agreement
will control that arrangement.
|
|
b.
|
If your firm
is providing trading and custodial services to other banks and the Client
purchasing Shares is a client of another bank, you may not facilitate
those transactions unless you (i) disclose the identity of the underlying
bank representing that client, and (ii) have verified with us that the
introducing bank has executed an agreement with us. You shall
also disclose the identity of any introducing intermediary (for example,
broker, consultant, or registered investment adviser) involved in any
transaction that you facilitate. The required disclosures shall
be made in such format as we mutually
agree.
|
|
1.
|
All
references to
"
Class F shares
"
or
"
Shares
"
shall refer to both
Class F-1 shares and Class F-2 shares, unless otherwise
provided.
|
|
·
|
If you offer
American Funds Money Market Fund, you acknowledge and agree that we may
discontinue making payments of 12b-1 fees in respect of American Funds
Money Market Fund if the fund’s investment adviser determines, in its sole
discretion, that the yield on the fund’s portfolio securities does not
support such payments. We currently intend to make these payments under
this Agreement.
|
|
·
|
Each party to
this Agreement agrees to comply with all applicable laws, including
applicable state privacy laws.
|
|
·
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
2.
|
The list of
funds on Schedule A to the Agreement is replaced in its entirety with the
following list:
|
|
AMCAP
Fund
|
Investment
Company of America
|
|
American
Balanced Fund
|
Intermediate
Bond Fund of America
|
|
American
Funds Money Market Fund
|
International
Growth and Income Fund
|
|
American
High-Income Municipal Bond Fund
|
Limited Term
Tax-Exempt Bond Fund of America
|
|
American
High-Income Trust
|
New Economy
Fund
|
|
American
Mutual Fund
|
New
Perspective Fund
|
|
Bond Fund of
America
|
New World
Fund
|
|
Capital
Income Builder
|
Short-Term
Bond Fund of America
|
|
Capital World
Growth and Income Fund
|
SMALLCAP
World Fund
|
|
Capital World
Bond Fund
|
Tax-Exempt
Bond Fund of America
|
|
Cash
Management Trust of America*
|
Tax-Exempt
Fund of California
|
|
EuroPacific
Growth Fund
|
Tax-Exempt
Fund of Maryland
|
|
Fundamental
Investors
|
Tax-Exempt
Fund of Virginia
|
|
Growth Fund
of America
|
U.S.
Government Securities Fund
|
|
Income Fund
of America
|
Washington
Mutual Investors Fund
|
|
Share Class
|
Distribution Fee
|
Service Fee
|
|
Class
R-1
|
0.75%
|
0.25%
|
|
Class
R-2
|
0.50%
|
0.25%
|
|
Class
R-3
|
0.25%
|
0.25%
|
|
Class
R-4
|
0.00%
|
0.25%
|
|
Class
R-5
|
0.00%
|
0.00%
|
|
Class
R-6
|
0.00%
|
0.00%
|
|
AMERICAN
FUNDS DISTRIBUTORS, INC.
|
[NAME OF
FUND]
|
|||
|
By:
|
By:
|
|||
|
Kevin G.
Clifford
|
[Name of
Officer]
|
|||
|
President
|
[Title]
|
|||
|
By:
|
By:
|
|||
|
David M.
Givner
|
[Name]
|
|||
|
Secretary
|
Secretary
|
|
A=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the beginning of such
calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class B shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
|
|
B=
|
Total average
Net Asset Value of all such Class B shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class C shares of a Fund at the beginning of such
calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class C shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class C shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
|
|
B=
|
Total average
Net Asset Value of all such Class C shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-B shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-B shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-C shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-C shares of a Fund for such calendar
month
|
|
Annual
account maintenance fee (paid monthly):
|
|
|
Fee per account (annual
rate)
|
Rate
|
|
Broker
controlled account (networked and street)
|
$0.84
|
|
Full service
account
|
$18.00
|
|
CAPITAL
RESEARCH AND MANAGEMENT
COMPANY
|
[NAME OF
FUND]
|
|||
|
By:
|
By:
|
|||
|
Timothy D.
Armour, President
|
[Name of
Officer], [Title]
|
|||
|
By:
|
By:
|
|||
|
Michael J.
Downer, Senior Vice President
|
[Name],
Secretary
|
|||
|
and
Secretary
|
|
|
1.
|
The Shares to
be issued pursuant to the Post-Effective Amendment have been duly
authorized for issuance by the Trust;
and
|
|
|
2.
|
When issued
and paid for upon the terms provided in the Post-Effective Amendment, the
Shares to be issued pursuant to the Post-Effective Amendment will be
validly issued, fully paid and
nonassessable.
|
|
|
(d)
|
The Class F shares
consisting of Class F-1 shares and Class F-2
shares
|
|
|
(e)
|
The Class R shares
consisting of Class R-1 shares, Class R-2 shares, Class R-3 shares, Class
R-4 shares, Class R-5 shares, and Class R-6
shares
|
|
|
(f)
|
The 529 share classes
consisting of Class 529-A shares, Class 529-B shares, Class 529-C shares,
Class 529-E shares and Class 529-F-1
shares
|
|
By:
|
|
|
[Name of
Officer], [Title]
|
|
|
By:
|
|
|
[Name],
Secretary
|
|
Ø
|
The CGC Audit
Committee
|
|
Ø
|
The CIL Audit
Committee
|
|
Ø
|
Any lawyer
employed by the Capital Group
organization
|
|
Ø
|
Initial
Public Offering (IPO) investments
|
|
Ø
|
Short selling
of securities subject to
preclearance
|
|
Ø
|
Spread
betting/contracts for difference (CFD) on securities (allowed only on
currencies, commodities, and broad-based
indices)
|
|
Ø
|
Writing puts
and calls on securities subject to
preclearance
|
|
|
·
|
No Board
member shall so use his or her position or knowledge gained therefrom as
to create a conflict between his or her personal interest and that of the
Fund.
|
|
|
·
|
No Board
member shall engage in excessive trading of shares of the fund or any
other affiliated fund to take advantage of short-term market
movements.
|
|
|
·
|
Each
non-affiliated Board member shall report to the Secretary of the Fund not
later than thirty (30) days after the end of each calendar quarter any
transaction in securities which such Board member has effected during the
quarter which the Board member then knows to have been effected within
fifteen (15) days before or after a date on which the Fund purchased or
sold, or considered the purchase or sale of, the same
security.
|
|
|
·
|
For purposes
of this Code of Ethics, transactions involving United States Government
securities as defined in the Investment Company Act of 1940, bankers’
acceptances, bank certificates of deposit, commercial paper, or shares of
registered open-end investment companies are exempt from reporting as are
non-volitional transactions such as dividend reinvestment programs and
transactions over which the Board member exercises no
control.
|
|
|
1.
|
It is the
responsibility of Covered Officers to foster, by their words and actions,
a corporate culture that encourages honest and ethical conduct, including
the ethical resolution of, and appropriate disclosure of conflicts of
interest. Covered Officers should work to assure a working
environment that is characterized by respect for law and compliance with
applicable rules and regulations.
|
|
|
2.
|
Each Covered
Officer must act in an honest and ethical manner while conducting the
affairs of the Fund, including the ethical handling of actual or apparent
conflicts of interest between personal and professional
relationships. Duties of Covered Officers
include:
|
|
|
·
|
Acting with
integrity;
|
|
|
·
|
Adhering to a
high standard of business ethics;
and
|
|
|
·
|
Not using
personal influence or personal relationships to improperly influence
investment decisions or financial reporting whereby the Covered Officer
would benefit personally to the detriment of the
Fund.
|
|
|
3.
|
Each Covered
Officer should act to promote full, fair, accurate, timely and
understandable disclosure in reports and documents that the Fund files
with or submits to, the Securities and Exchange Commission and in other
public communications made by the
Fund.
|
|
|
·
|
Covered
Officers should familiarize themselves with disclosure requirements
applicable to the Fund and disclosure controls and procedures in place to
meet these requirements; and
|
|
|
·
|
Covered
Officers must not knowingly misrepresent, or cause others to misrepresent
facts about the Fund to others, including the Fund’s auditors, independent
directors, governmental regulators and self-regulatory
organizations.
|
|
|
4.
|
Any existing
or potential violations of this Code of Ethics should be reported to The
Capital Group Companies’ Personal Investing Committee.
The Personal
Investing Committee is authorized to investigate any such violations and
report their findings to the Chairman of the Audit Committee of the
Fund. The Chairman of the Audit Committee may report violations
of the Code of Ethics to the Board or other appropriate entity including
the Audit Committee, if he or she believes such a reporting is
appropriate. The Personal Investing Committee may also
determine the appropriate sanction for any violations of this Code of
Ethics, including removal from office, provided that removal from office
shall only be carried out with the approval of the
Board.
|
|
|
5.
|
Application
of this Code of Ethics is the responsibility of the Personal Investing
Committee, which shall report periodically to the Chairman of the Audit
Committee of the Fund.
|
|
|
6.
|
Material
amendments to these provisions must be ratified by a majority vote of the
Board. As required by applicable rules, substantive amendments
to the Code of Ethics must be filed or appropriately
disclosed.
|