Here is the total return on a $1,000 investment with all distributions reinvested for the period ended March 31, 2012 (the most recent calendar quarter-end):
|
||||
Lifetime (since 1/27/2012) | ||||
Total return
|
2.18 | % |
20 largest holdings
|
||||
Percent of
net assets as
|
||||
Mexico government bonds (MXN)
|
4.2 | % | ||
Brazil government inflation-linked bonds
|
3.9 | |||
Mexico government inflation-linked bonds
|
3.4 | |||
Uruguay government inflation-linked bonds
|
2.4 | |||
Brazil government bonds (BRL)
|
2.3 | |||
Long-term U.S. Treasury bonds
|
2.3 | |||
Brazil government bonds (USD)
|
2.1 | |||
Mexico government bonds (USD)
|
2.1 | |||
Venezuela government bonds (USD)
|
1.8 | |||
HKT Trust
|
1.7 | |||
Taiwan Semiconductor Manufacturing
|
1.7 | |||
Turkey government inflation-linked bonds
|
1.5 | |||
Samsung Electronics
|
1.4 | |||
Bancolombia
|
1.4 | |||
Philippines government bonds (PHP)
|
1.3 | |||
Petróleos Mexicanos bonds (PEMEX)
|
1.3 | |||
Standard Chartered
|
1.1 | |||
OAO Gazprom
|
1.1 | |||
Etihad Etisalat
|
1.0 | |||
Hana Financial Holdings
|
1.0 | |||
Total
|
39.0 |
Asset mix
|
||||
As of April 30, 2012
|
||||
Local currency inflation-linked bonds
|
12 | % | ||
Common stocks
|
43 | % | ||
Corporate bonds & notes (including convertible securities)
|
12 | % | ||
Local currency emerging markets bonds
|
11 | % | ||
U.S. dollar-denominated emerging markets bonds
|
10 | % | ||
Short-term securities and other assets less liabilities
|
9 | % | ||
U.S. Treasuries
|
3 | % |
Top five equity sectors
|
||||
Percent of net assets
|
||||
Financials
|
8.7 | % | ||
Information technology
|
7.8 | |||
Energy
|
6.1 | |||
Materials
|
5.8 | |||
Telecommunication services
|
5.6 |
15 largest country positions
|
||||||||||||
Percent of net assets
as of 4/30/12 |
||||||||||||
Equity
|
Bonds
and notes
|
Total
|
||||||||||
Mexico
|
0.7 | % | 12.1 | % | 12.8 | % | ||||||
Brazil
|
1.2 | 10.5 | 11.7 | |||||||||
China (including Hong Kong)
|
9.5 | 1.2 | 10.7 | |||||||||
United Kingdom*
|
5.2 | 0.1 | 5.3 | |||||||||
United States of America*
|
1.2 | 4.0 | 5.2 | |||||||||
South Korea
|
4.1 | 1.0 | 5.1 | |||||||||
Taiwan
|
4.0 | — | 4.0 | |||||||||
Malaysia
|
1.6 | 1.0 | 2.6 | |||||||||
Uruguay
|
— | 2.4 | 2.4 | |||||||||
South Africa
|
0.9 | 1.3 | 2.2 | |||||||||
Colombia
|
1.4 | 0.6 | 2.0 | |||||||||
Venezuela
|
— | 1.8 | 1.8 | |||||||||
Thailand
|
0.7 | 1.1 | 1.8 | |||||||||
Turkey
|
— | 1.7 | 1.7 | |||||||||
Russia
|
1.6 | — | 1.6 | |||||||||
Total net assets
|
32.1 | % | 38.8 | % | 70.9 | % | ||||||
*Includes investments in companies listed in developed markets that have significant operations in emerging markets.
|
Investment portfolio April 30, 2012 Equity Bonds Percent of securities and notes net assets -------------------------------------------------------------------------------- Sector diversification -------------------------------------------------------------------------------- Government --% 35.48% 35.48% -------------------------------------------------------------------------------- Financials 8.65 4.47 13.12 -------------------------------------------------------------------------------- Energy 6.11 3.59 9.70 -------------------------------------------------------------------------------- Information technology 7.83 .24 8.07 -------------------------------------------------------------------------------- Materials 5.84 1.38 7.22 -------------------------------------------------------------------------------- Telecommunication services 5.55 .84 6.39 -------------------------------------------------------------------------------- Consumer discretionary 3.28 .76 4.04 -------------------------------------------------------------------------------- Industrials 2.68 -- 2.68 -------------------------------------------------------------------------------- Consumer staples 2.52 .14 2.66 -------------------------------------------------------------------------------- Utilities 1.14 .51 1.65 -------------------------------------------------------------------------------- 43.60% 47.41% 91.01 ====== ====== Short-term securities 8.53 -------------------------------------------------------------------------------- Other assets less liabilities (including forward currency contracts) .46 -------------------------------------------------------------------------------- Net assets 100.00% ======= Principal Percent amount Value of net Bonds and notes (000) (000) assets ------------------------------------------------------------------------------------------------------------------------- Latin America -- 30.3% ------------------------------------------------------------------------------------------------------------------------- Argentina -- 1.4% ------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of): 0.098% August 3, 20121,2 $4,911 $606 0.2% 7.00% October 3, 2015 3,186 2,872 0.6 ------------------------------------------------------------------------------------------------------------------------- Provincia de Buenos Aires 10.875% January 26, 2021 4,100 2,885 0.6 ------------------------------------------------------------------------------------------------------------------------- 6,363 1.4 ------------------------------------------------------------------------------------------------------------------------- Brazil -- 10.5% ------------------------------------------------------------------------------------------------------------------------- Banco do Brasil SA 9.25% October 31, 20493 1,225 1,354 0.3 ------------------------------------------------------------------------------------------------------------------------- Banco Safra SA 10.25% August 8, 2016 BRL 3,200 1,754 0.4 ------------------------------------------------------------------------------------------------------------------------- Banco Votorantim SA 6.25% May 16, 20164 4,500 2,566 0.6 ------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Global: 10.50% July 14, 2014 $570 695 0.1 4.875% January 22, 2021 2,000 2,306 0.5 8.50% January 5, 2024 BRL 6,770 3,632 0.8 10.25% January 10, 2028 9,191 5,716 1.3 11.00% August 17, 2040 $4,930 6,520 1.4 Brazil Notas do Tesouro Nacional: Series F, 10.00% January 1, 2014 - January 1, 2017 BRL 2 1,021 0.2 Series B, 6.00% May 15, 2015 - May 15, 20454 14 17,752 3.9 ------------------------------------------------------------------------------------------------------------------------- Itau Unibanco Holding SA 6.20% December 21, 20213 $600 630 0.1 ------------------------------------------------------------------------------------------------------------------------- Odebrecht Drilling Norbe VIII/IX Ltd. 6.35% June 30, 2021 823 881 0.2 ------------------------------------------------------------------------------------------------------------------------- Petrobras International Finance Co. - Pifco: 5.375% January 27, 2021 1,965 2,161 0.5 6.75% January 27, 2041 810 976 0.2 ------------------------------------------------------------------------------------------------------------------------- 47,964 10.5 ------------------------------------------------------------------------------------------------------------------------- Chile -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Banco Santander Chile 2.51% February 14, 20141,3 2,450 2,449 0.5 ------------------------------------------------------------------------------------------------------------------------- Emgesa SA ESP 8.75% January 25, 2021 COP 1,200,000 760 0.2 ------------------------------------------------------------------------------------------------------------------------- 3,209 0.7 ------------------------------------------------------------------------------------------------------------------------- Colombia -- 0.6% ------------------------------------------------------------------------------------------------------------------------- Bancolombia SA 5.95% June 3, 2021 $200 213 0.0 ------------------------------------------------------------------------------------------------------------------------- Colombia (Republic of) Global 6.125% January 18, 2041 2,010 2,549 0.6 ------------------------------------------------------------------------------------------------------------------------- Transportadora de Gas Internacional SA 5.70% March 20, 20223 200 207 0.0 ------------------------------------------------------------------------------------------------------------------------- 2,969 0.6 ------------------------------------------------------------------------------------------------------------------------- Mexico -- 12.1% ------------------------------------------------------------------------------------------------------------------------- America Movil SAB de CV 3.50% February 8, 2015 CNY 8,750 1,405 0.3 ------------------------------------------------------------------------------------------------------------------------- Cemex Finance LLC 9.50% December 14, 2016 $2,890 2,861 0.6 ------------------------------------------------------------------------------------------------------------------------- Cemex SAB de CV 9.00% January 11, 20183 1,000 940 0.2 ------------------------------------------------------------------------------------------------------------------------- Petroleos Mexicanos: 6.00% March 5, 2020 1,330 1,533 0.3 5.50% January 21, 2021 670 749 0.2 Principal Percent amount Value of net (000) (000) assets ------------------------------------------------------------------------------------------------------------------------- Mexico ------------------------------------------------------------------------------------------------------------------------- 4.875% January 24, 20223 $3,200 $3,418 0.8% ------------------------------------------------------------------------------------------------------------------------- United Mexican States Government: Series M, 7.50% June 21, 2012 MXN 150 1,159 0.3 Series MI10, 9.50% December 18, 2014 29 244 0.0 Series M10, 7.75% December 14, 2017 285 2,444 0.5 2.50% December 10, 20204 37 285 0.1 Series M, 6.50% June 10, 2021 550 4,348 1.0 Series M20, 10.00% December 5, 2024 1,055 10,650 2.3 Series M30, 10.00% November 20, 2036 45 447 0.1 4.00% November 15, 20404 1,836 15,208 3.3 United Mexican States Government Global: 6.625% March 3, 2015 $2,880 3,297 0.7 Series A, 3.625% March 15, 2022 250 262 0.1 Series A, 6.05% January 11, 2040 4,720 5,912 1.3 ------------------------------------------------------------------------------------------------------------------------- 55,162 12.1 ------------------------------------------------------------------------------------------------------------------------- Panama -- 0.1% ------------------------------------------------------------------------------------------------------------------------- Panama (Republic of) Global 9.375% July 23, 2012 320 326 0.1 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Peru -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Banco de Credito del Peru 6.875% September 16, 20261 2,800 2,996 0.7 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Uruguay -- 2.4% ------------------------------------------------------------------------------------------------------------------------- Uruguay (Republic of): 5.00% September 14, 20184 UYU 15,069 888 0.2 4.375% December 15, 20284 172,384 9,845 2.2 ------------------------------------------------------------------------------------------------------------------------- 10,733 2.4 ------------------------------------------------------------------------------------------------------------------------- Venezuela -- 1.8% ------------------------------------------------------------------------------------------------------------------------- Venezuela (Republic of): 9.25% September 15, 2027 $8,360 7,440 1.6 7.00% March 31, 2038 875 630 0.2 ------------------------------------------------------------------------------------------------------------------------- 8,070 1.8 ------------------------------------------------------------------------------------------------------------------------- Asia-Pacific -- 7.3% ------------------------------------------------------------------------------------------------------------------------- China -- 1.2% ------------------------------------------------------------------------------------------------------------------------- China Government Bond 0.60% August 18, 2014 CNY 12,500 1,952 0.4 ------------------------------------------------------------------------------------------------------------------------- Longfor Properties Co. Ltd. 9.50% April 7, 2016 $1,400 1,460 0.3 ------------------------------------------------------------------------------------------------------------------------- Renhe Commercial Holdings Co., Ltd.: 11.75% May 18, 2015 2,210 1,406 0.3 13.00% March 10, 2016 1,050 651 0.2 ------------------------------------------------------------------------------------------------------------------------- 5,469 1.2 ------------------------------------------------------------------------------------------------------------------------- India -- 0.0% ------------------------------------------------------------------------------------------------------------------------- Reliance Holdings USA, Inc. 5.40% February 14, 20223 250 251 0.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Indonesia -- 0.9% ------------------------------------------------------------------------------------------------------------------------- Indonesia (Republic of), Series FR33, 12.50% March 15, 2013 IDR 2,830,000 330 0.1 Principal Percent amount Value of net Bonds and notes (000) (000) assets ------------------------------------------------------------------------------------------------------------------------- Indonesia ------------------------------------------------------------------------------------------------------------------------- Indonesia Retail Bond, Series OR17, 7.95% August 15, 2013 IDR 31,436,000 $3,580 0.8% ------------------------------------------------------------------------------------------------------------------------- 3,910 0.9 ------------------------------------------------------------------------------------------------------------------------- Malaysia -- 1.0% ------------------------------------------------------------------------------------------------------------------------- Malaysian Government, Series 110, 3.835% August 12, 2015 MYR 13,370 4,504 1.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Philippines -- 1.3% ------------------------------------------------------------------------------------------------------------------------- Philippine Government Bond, Series 1054, 6.375% January 19, 2022 PHP 221,686 5,717 1.3 Philippines (Republic of) 4.95% January 15, 2021 10,000 245 0.0 ------------------------------------------------------------------------------------------------------------------------- 5,962 1.3 ------------------------------------------------------------------------------------------------------------------------- South Korea -- 1.0% ------------------------------------------------------------------------------------------------------------------------- Samsung Electronics America, Inc. 1.75% April 10, 20173 $1,100 1,102 0.3 ------------------------------------------------------------------------------------------------------------------------- South Korean Government, Series 1609, 5.00% September 10, 2016 KRW 3,497,300 3,276 0.7 ------------------------------------------------------------------------------------------------------------------------- 4,378 1.0 ------------------------------------------------------------------------------------------------------------------------- Sri Lanka -- 0.8% ------------------------------------------------------------------------------------------------------------------------- Democratic Socialist Republic of Sri Lanka: 8.25% October 24, 2012 $910 933 0.2 6.25% October 4, 2020 2,832 2,896 0.6 ------------------------------------------------------------------------------------------------------------------------- 3,829 0.8 ------------------------------------------------------------------------------------------------------------------------- Thailand -- 1.1% ------------------------------------------------------------------------------------------------------------------------- PTTEP Canada International Finance Ltd. 5.692% April 5, 2021 2,800 3,068 0.7 ------------------------------------------------------------------------------------------------------------------------- Thailand Government Bond 1.20% July 14, 20214 THB 57,800 1,917 0.4 ------------------------------------------------------------------------------------------------------------------------- 4,985 1.1 ------------------------------------------------------------------------------------------------------------------------- Eastern Europe and Middle East -- 3.1% ------------------------------------------------------------------------------------------------------------------------- Croatia -- 0.5% ------------------------------------------------------------------------------------------------------------------------- Croatian Government 6.625% July 14, 2020 $2,190 2,200 0.5 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Kazakhstan -- 0.1% ------------------------------------------------------------------------------------------------------------------------- Halyk Savings Bank of Kazakhstan JSC 7.25% January 28, 2021 420 427 0.1 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Latvia -- 0.4% ------------------------------------------------------------------------------------------------------------------------- Latvia (Republic of) 5.25% February 22, 20173 1,625 1,674 0.4 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Poland -- 0.1% ------------------------------------------------------------------------------------------------------------------------- Poland Government Bond 5.125% April 21, 2021 500 542 0.1 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Russia -- 0.0% ------------------------------------------------------------------------------------------------------------------------- Russian Federation 3.25% April 4, 20173 200 203 0.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Turkey -- 1.7% ------------------------------------------------------------------------------------------------------------------------- Turkey (Republic of) 4.00% April 29, 20154 TRY 11,133 6,593 1.5 ------------------------------------------------------------------------------------------------------------------------- Principal Percent amount Value of net (000) (000) assets ------------------------------------------------------------------------------------------------------------------------- Turkey ------------------------------------------------------------------------------------------------------------------------- Yapi ve Kredi Bankasi AS 6.75% February 8, 20173 $1,000 $1,027 0.2% ------------------------------------------------------------------------------------------------------------------------- 7,620 1.7 ------------------------------------------------------------------------------------------------------------------------- United Arab Emirates -- 0.3% ------------------------------------------------------------------------------------------------------------------------- Abu Dhabi National Energy Co. 4.125% March 13, 2017 1,500 1,545 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Africa -- 1.7% ------------------------------------------------------------------------------------------------------------------------- Egypt -- 0.3% ------------------------------------------------------------------------------------------------------------------------- African Export-Import Bank 5.75% July 27, 2016 1,400 1,460 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Senegal -- 0.1% ------------------------------------------------------------------------------------------------------------------------- Republic of Senegal 8.75% May 13, 2021 600 650 0.1 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- South Africa -- 1.3% ------------------------------------------------------------------------------------------------------------------------- PE Paper Escrow GmbH 11.75% August 1, 2014 EUR 1,755 2,509 0.6 ------------------------------------------------------------------------------------------------------------------------- Standard Bank PLC 8.125% December 2, 2019 $1,800 1,980 0.4 ------------------------------------------------------------------------------------------------------------------------- Steinhoff International Holdings Ltd. 9.625% convertible debenture, July 20, 2015 ZAR 8,000 1,324 0.3 ------------------------------------------------------------------------------------------------------------------------- 5,813 1.3 ------------------------------------------------------------------------------------------------------------------------- Other markets -- 5.0% ------------------------------------------------------------------------------------------------------------------------- Australia -- 0.3% ------------------------------------------------------------------------------------------------------------------------- Santos Finance Ltd. 8.25% September 22, 20701 EUR 850 1,100 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Jamaica -- 0.2% ------------------------------------------------------------------------------------------------------------------------- Digicel Ltd. 12.00% April 1, 2014 $810 913 0.2 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Switzerland -- 0.4% ------------------------------------------------------------------------------------------------------------------------- Transocean, Inc. 6.375% December 15, 2021 1,700 1,993 0.4 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- United Kingdom -- 0.1% ------------------------------------------------------------------------------------------------------------------------- SABMiller Holdings, Inc. 1.85% January 15, 20153 400 406 0.1 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- United States of America -- 4.0% ------------------------------------------------------------------------------------------------------------------------- Arcos Dorados Holdings, Inc. 10.25% July 13, 2016 BRL 3,900 2,123 0.5 ------------------------------------------------------------------------------------------------------------------------- Philip Morris International, Inc. 2.90% November 15, 2021 $215 215 0.0 ------------------------------------------------------------------------------------------------------------------------- Trilogy International Partners LLC 10.25% August 15, 2016 1,700 1,505 0.3 ------------------------------------------------------------------------------------------------------------------------- U.S. Treasury: 0.75% March 31, 2013 4,100 4,121 0.9 3.75% August 15, 2041 9,205 10,380 2.3 ------------------------------------------------------------------------------------------------------------------------- 18,344 4.0 Total bonds and notes (cost: $212,001,000) 215,970 47.4 Percent Value of net Equity securities Shares (000) assets ------------------------------------------------------------------------------------------------------------------------- Asia-Pacific -- 22.1% ------------------------------------------------------------------------------------------------------------------------- China -- 6.0% ------------------------------------------------------------------------------------------------------------------------- Anhui Conch Cement Co. Ltd. (Hong Kong)5 420,000 $1,407 0.3% ------------------------------------------------------------------------------------------------------------------------- Bank of China Ltd. (Hong Kong) 10,020,511 4,198 0.9 ------------------------------------------------------------------------------------------------------------------------- China High Speed Transmission Equipment Group Co. Ltd. (Hong Kong) 2,392,000 1,159 0.3 ------------------------------------------------------------------------------------------------------------------------- China Longyuan Power Group Corp. Ltd. (Hong Kong)5 2,587,000 2,044 0.5 ------------------------------------------------------------------------------------------------------------------------- China Petroleum & Chemical Corp. (Hong Kong) 2,232,000 2,405 0.5 ------------------------------------------------------------------------------------------------------------------------- China Shenhua Energy Co. Ltd. (Hong Kong)5 765,000 3,397 0.8 ------------------------------------------------------------------------------------------------------------------------- CSR Corp. Ltd. (Hong Kong)5 1,890,000 1,525 0.3 ------------------------------------------------------------------------------------------------------------------------- Honghua Group Ltd. (Hong Kong)5 20,650,000 3,726 0.8 ------------------------------------------------------------------------------------------------------------------------- Industrial and Commercial Bank of China Ltd. (Hong Kong) 2,946,000 1,967 0.4 ------------------------------------------------------------------------------------------------------------------------- Minth Group Ltd. (Hong Kong) 1,282,000 1,624 0.4 ------------------------------------------------------------------------------------------------------------------------- Yingde Gases Group Co. Ltd. (Hong Kong) 1,192,500 1,386 0.3 ------------------------------------------------------------------------------------------------------------------------- Zhongsheng Group Holdings Ltd. (Hong Kong) 455,000 904 0.2 ------------------------------------------------------------------------------------------------------------------------- Zhuzhou CSR Times Electric Co. Ltd. (Hong Kong) 514,000 1,458 0.3 ------------------------------------------------------------------------------------------------------------------------- 27,200 6.0 ------------------------------------------------------------------------------------------------------------------------- Hong Kong -- 3.5% ------------------------------------------------------------------------------------------------------------------------- AIA Group Ltd. 420,200 1,495 0.3 ------------------------------------------------------------------------------------------------------------------------- ASM Pacific Technology Ltd. 151,500 2,052 0.5 ------------------------------------------------------------------------------------------------------------------------- EVA Precision Industrial Holdings Ltd. 2,006,000 341 0.1 ------------------------------------------------------------------------------------------------------------------------- Goodbaby International Holdings Ltd. 881,000 274 0.1 ------------------------------------------------------------------------------------------------------------------------- HKT Trust, units5 10,112,000 7,859 1.7 ------------------------------------------------------------------------------------------------------------------------- SJM Holdings Ltd. 1,758,000 3,861 0.8 ------------------------------------------------------------------------------------------------------------------------- 15,882 3.5 ------------------------------------------------------------------------------------------------------------------------- India -- 0.6% ------------------------------------------------------------------------------------------------------------------------- Adani Enterprises Ltd. 27,000 144 0.0 ------------------------------------------------------------------------------------------------------------------------- DLF Ltd. 133,000 472 0.1 ------------------------------------------------------------------------------------------------------------------------- ICICI Bank Ltd. 97,000 1,624 0.3 ------------------------------------------------------------------------------------------------------------------------- United Spirits Ltd. 50,000 741 0.2 ------------------------------------------------------------------------------------------------------------------------- 2,981 0.6 ------------------------------------------------------------------------------------------------------------------------- Japan -- 0.2% ------------------------------------------------------------------------------------------------------------------------- Kurita Water Industries Ltd. 32,000 786 0.2 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Malaysia -- 1.6% ------------------------------------------------------------------------------------------------------------------------- Bumi Armada Bhd.5 1,331,900 1,756 0.4 ------------------------------------------------------------------------------------------------------------------------- CIMB Group Holdings Bhd. 698,100 1,710 0.4 ------------------------------------------------------------------------------------------------------------------------- Genting Bhd. 1,165,300 3,982 0.8 ------------------------------------------------------------------------------------------------------------------------- 7,448 1.6 ------------------------------------------------------------------------------------------------------------------------- Philippines -- 0.0% ------------------------------------------------------------------------------------------------------------------------- Energy Development Corp. 1,421,600 199 0.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Singapore -- 1.4% ------------------------------------------------------------------------------------------------------------------------- DBS Group Holdings Ltd. 392,643 4,429 1.0 ------------------------------------------------------------------------------------------------------------------------- Olam International Ltd. 177,000 325 0.1 ------------------------------------------------------------------------------------------------------------------------- Wilmar International Ltd. 371,000 1,460 0.3 ------------------------------------------------------------------------------------------------------------------------- 6,214 1.4 Percent Value of net Shares (000) assets ------------------------------------------------------------------------------------------------------------------------- South Korea -- 4.1% ------------------------------------------------------------------------------------------------------------------------- Daum Communications Corp. 2,200 $206 0.0% ------------------------------------------------------------------------------------------------------------------------- Hana Financial Group, Inc. 133,480 4,588 1.0 ------------------------------------------------------------------------------------------------------------------------- Hyundai Mobis Co., Ltd. 12,503 3,402 0.8 ------------------------------------------------------------------------------------------------------------------------- LG Chem, Ltd. 3,423 862 0.2 ------------------------------------------------------------------------------------------------------------------------- Samsung Electronics Co., Ltd. 4,860 5,978 1.3 Samsung Electronics Co., Ltd., nonvoting preferred 826 591 0.1 ------------------------------------------------------------------------------------------------------------------------- SK Hynix Inc.5 125,730 3,121 0.7 ------------------------------------------------------------------------------------------------------------------------- 18,748 4.1 ------------------------------------------------------------------------------------------------------------------------- Taiwan -- 4.0% ------------------------------------------------------------------------------------------------------------------------- Advanced Semiconductor Engineering, Inc. 2,030,724 2,054 0.5 ------------------------------------------------------------------------------------------------------------------------- ASUSTeK Computer, Inc. 336,820 3,402 0.7 ------------------------------------------------------------------------------------------------------------------------- CTCI Corp. 1,018,000 1,966 0.4 ------------------------------------------------------------------------------------------------------------------------- Delta Electronics, Inc. 1,037,000 3,082 0.7 ------------------------------------------------------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co., Ltd. 2,536,000 7,536 1.7 ------------------------------------------------------------------------------------------------------------------------- 18,040 4.0 ------------------------------------------------------------------------------------------------------------------------- Thailand -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Advanced Info Service PCL 372,700 2,218 0.5 ------------------------------------------------------------------------------------------------------------------------- Precious Shipping PCL 1,562,600 823 0.2 ------------------------------------------------------------------------------------------------------------------------- 3,041 0.7 ------------------------------------------------------------------------------------------------------------------------- Eastern Europe and Middle East -- 3.7% ------------------------------------------------------------------------------------------------------------------------- Czech Republic -- 0.2% ------------------------------------------------------------------------------------------------------------------------- CEZ AS 9,900 399 0.1 ------------------------------------------------------------------------------------------------------------------------- Telefonica O2 Czech Republic, AS 20,796 419 0.1 ------------------------------------------------------------------------------------------------------------------------- 818 0.2 ------------------------------------------------------------------------------------------------------------------------- Israel -- 0.0% ------------------------------------------------------------------------------------------------------------------------- Partner Communications Co., Ltd. (ADR) 20,200 151 0.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Oman -- 0.3% ------------------------------------------------------------------------------------------------------------------------- BankMuscat (SAOG) (GDR) 196,830 1,278 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Poland -- 0.2% ------------------------------------------------------------------------------------------------------------------------- Telekomunikacja Polska SA 200,456 1,049 0.2 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Russia -- 1.6% ------------------------------------------------------------------------------------------------------------------------- Etalon Group Ltd. (GDR)5 42,059 279 0.1 ------------------------------------------------------------------------------------------------------------------------- OAO Gazprom (ADR) 431,243 4,976 1.1 ------------------------------------------------------------------------------------------------------------------------- Sberbank of Russia 597,362 1,912 0.4 ------------------------------------------------------------------------------------------------------------------------- 7,167 1.6 ------------------------------------------------------------------------------------------------------------------------- Saudi Arabia -- 1.2% ------------------------------------------------------------------------------------------------------------------------- Almarai Co., PALMS issued by HSBC Bank plc, expires November 24, 2014 (acquired 3/20/12, cost: $842,000)6 49,909 892 0.2 ------------------------------------------------------------------------------------------------------------------------- Etihad Etisalat Co., PALMS issued by Deutsche Bank, expires December 3, 2012 (acquired 2/1/2012, cost: $4,095,000)6 252,100 4,655 1.0 ------------------------------------------------------------------------------------------------------------------------- 5,547 1.2 Percent Value of net Equity securities Shares (000) assets ------------------------------------------------------------------------------------------------------------------------- United Arab Emirates -- 0.2% ------------------------------------------------------------------------------------------------------------------------- DP World Ltd. 65,000 $745 0.2% ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Latin America -- 3.3% ------------------------------------------------------------------------------------------------------------------------- Brazil -- 1.2% ------------------------------------------------------------------------------------------------------------------------- Gerdau SA (ADR) 339,300 3,186 0.7 ------------------------------------------------------------------------------------------------------------------------- Hypermarcas SA, ordinary nominative 315,200 2,022 0.5 ------------------------------------------------------------------------------------------------------------------------- 5,208 1.2 ------------------------------------------------------------------------------------------------------------------------- Chile -- 0.0% ------------------------------------------------------------------------------------------------------------------------- Ripley Corp. SA 142,323 159 0.0 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Colombia -- 1.4% ------------------------------------------------------------------------------------------------------------------------- Bancolombia SA 106,469 1,746 0.4 ------------------------------------------------------------------------------------------------------------------------- Bancolombia SA, preferred nominative (ADR) 65,509 4,443 1.0 ------------------------------------------------------------------------------------------------------------------------- 6,189 1.4 ------------------------------------------------------------------------------------------------------------------------- Mexico -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Alsea, SAB de CV, Series A5 540,121 740 0.2 ------------------------------------------------------------------------------------------------------------------------- Arca Continental, SAB de CV 76,261 388 0.1 ------------------------------------------------------------------------------------------------------------------------- CEMEX, SAB de CV, ordinary participation certificates, units (ADR)5 122,194 884 0.2 ------------------------------------------------------------------------------------------------------------------------- Grupo Comercial Chedraui SA de CV, Class B 84,500 219 0.0 ------------------------------------------------------------------------------------------------------------------------- Grupo Financiero Inbursa, SAB de CV 53,800 118 0.0 ------------------------------------------------------------------------------------------------------------------------- Impulsora del Desarrollo y el Empleo en America Latina, SAB de CV, Series B-15 536,400 1,023 0.2 ------------------------------------------------------------------------------------------------------------------------- 3,372 0.7 ------------------------------------------------------------------------------------------------------------------------- Africa -- 0.9% ------------------------------------------------------------------------------------------------------------------------- South Africa -- 0.9% ------------------------------------------------------------------------------------------------------------------------- AngloGold Ashanti Ltd. 39,092 1,331 0.3 ------------------------------------------------------------------------------------------------------------------------- Harmony Gold Mining Co. Ltd. 101,794 990 0.2 Harmony Gold Mining Co. Ltd. (ADR) 144,500 1,402 0.3 ------------------------------------------------------------------------------------------------------------------------- Royal Bafokeng Platinum Ltd.5 60,136 468 0.1 ------------------------------------------------------------------------------------------------------------------------- 4,191 0.9 ------------------------------------------------------------------------------------------------------------------------- Other markets -- 8.7% ------------------------------------------------------------------------------------------------------------------------- Australia -- 0.6% ------------------------------------------------------------------------------------------------------------------------- Oil Search Ltd. 342,551 2,623 0.6 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Austria -- 0.3% ------------------------------------------------------------------------------------------------------------------------- Vienna Insurance Group 40,379 1,646 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Canada -- 0.3% ------------------------------------------------------------------------------------------------------------------------- First Quantum Minerals Ltd. 69,500 1,444 0.3 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Italy -- 0.4% ------------------------------------------------------------------------------------------------------------------------- Tenaris SA (ADR) 43,043 1,687 0.4 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Netherlands -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Fugro NV 42,400 3,090 0.7 ------------------------------------------------------------------------------------------------------------------------- Percent Value of net Shares (000) assets ------------------------------------------------------------------------------------------------------------------------- United Kingdom -- 5.2% ------------------------------------------------------------------------------------------------------------------------- Anglo American PLC 68,700 $2,640 0.6% ------------------------------------------------------------------------------------------------------------------------- Ensco PLC, Class A (ADR) 76,800 4,197 0.9 ------------------------------------------------------------------------------------------------------------------------- Glencore International PLC 640,800 4,426 1.0 ------------------------------------------------------------------------------------------------------------------------- Global Ports Investments PLC (GDR) 81,329 1,210 0.2 ------------------------------------------------------------------------------------------------------------------------- Imperial Tobacco Group PLC 80,315 3,212 0.7 ------------------------------------------------------------------------------------------------------------------------- Mondi PLC 352,490 3,269 0.7 ------------------------------------------------------------------------------------------------------------------------- Standard Chartered PLC 205,700 5,028 1.1 ------------------------------------------------------------------------------------------------------------------------- 23,982 5.2 ------------------------------------------------------------------------------------------------------------------------- United States of America -- 1.2% ------------------------------------------------------------------------------------------------------------------------- Flextronics International Ltd.5 360,300 2,400 0.5 ------------------------------------------------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc. 75,900 2,907 0.7 ------------------------------------------------------------------------------------------------------------------------- 5,307 1.2 ------------------------------------------------------------------------------------------------------------------------- Miscellaneous -- 4.9% ------------------------------------------------------------------------------------------------------------------------- Equity securities in initial period of acquisition 22,488 4.9 ------------------------------------------------------------------------------------------------------------------------- Total equity securities (cost: $188,750,000) 198,680 43.6 Principal amount Short-term securities (000) ------------------------------------------------------------------------------------------------------------------------- Commercial paper -- 7.8% ------------------------------------------------------------------------------------------------------------------------- Barclays U.S. Funding LLC 0.13% due 5/1/12 $10,000 10,000 2.2 ------------------------------------------------------------------------------------------------------------------------- Chariot Funding LLC 0.19% due 6/11/12 7,000 6,999 1.5 ------------------------------------------------------------------------------------------------------------------------- Emerson Electric Co. 0.11% due 5/3/12 2,700 2,700 0.6 ------------------------------------------------------------------------------------------------------------------------- NetJets, Inc. 0.13% due 5/7/12 5,000 5,000 1.1 ------------------------------------------------------------------------------------------------------------------------- Siemens Capital Co. LLC 0.13% due 5/7/12 4,700 4,700 1.0 ------------------------------------------------------------------------------------------------------------------------- Total Capital SA 0.12% due 5/1/12 3,200 3,200 0.7 ------------------------------------------------------------------------------------------------------------------------- Unilever Capital Corp. 0.16% due 6/7/12 3,000 2,999 0.7 ------------------------------------------------------------------------------------------------------------------------- 35,598 7.8 Discount notes -- 0.7% ------------------------------------------------------------------------------------------------------------------------- Tennessee Valley Authority 0.08% due 6/7/12 3,300 3,300 0.7 ------------------------------------------------------------------------------------------------------------------------- Total short-term securities (cost: $38,897,000) 38,898 8.5 Total investment securities (cost: $439,648,000) 453,548 99.5 Other assets less liabilities (including forward currency contracts) 2,113 0.5 ------------- Net assets $455,661 100.0 ============= 1 Coupon rate may change periodically. 2 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. 3 Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933 (not including purchases of securities that were publicly offered in the primary local market but were not registered under U.S. securities laws). May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $13,661,000, which represented 3.00% of the net assets of the fund. 4 Index-linked bond whose principal amount moves with a government retail price index. 5 Security did not produce income during the last 12 months. 6 Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. These securities, acquired at a cost of $4,937,000, may be subject to legal or contractual restrictions on resale. The total value of all such securities was $5,547,000, which represented 1.22% of the net assets of the fund. Abbreviations Securities: ADR -- American Depositary Receipts GDR -- Global Depositary Receipts PALMS -- Participating Access Linked Middle Eastern Securities Currency: BRL -- Brazilian real COP -- Colombian peso CNY -- Chinese renminbi EUR -- Euro IDR -- Indonesian rupiah KRW -- Korean won MXN -- Mexican peso MYR -- Malaysian ringgit PHP -- Philippine peso THB -- Thai baht TRY -- Turkish lira UYU -- Uruguayan peso ZAR -- South African rand See Notes to Financial Statements unaudited Financial statements -------------------------------------------------------------------------------------------------------- Statement of assets and liabilities at April 30, 2012 (dollars in thousands, except per-share data) -------------------------------------------------------------------------------------------------------- Assets: Investment securities, at value: (cost: $439,648) $ 453,548 Cash 135 Cash denominated in non-U.S. currency (cost: $84) 84 Unrealized appreciation on open forward currency contracts 194 Receivables for: Sales of investments $ 3,616 Dividends and interest 3,838 Other 2 7,456 ----------- ----------- Total assets 461,417 ----------- Liabilities: Unrealized depreciation on open forward currency contracts 274 Payables for: Purchases of investments 4,985 Investment advisory services 370 Non-U.S. taxes 20 Trustees' compensation 11 Other accrued expenses 96 5,482 ----------- ----------- Total liabilities 5,756 ----------- Net assets at April 30, 2012: $ 455,661 =========== Net assets consist of: Capital paid in on shares of stock $ 439,777 Undistributed net investment income 4,457 Accumulated net realized loss (2,344) Net unrealized appreciation 13,771 ----------- Net assets at April 30, 2012: $ 455,661 =========== Shares outstanding: 40,323,887 ----------- Net asset value per share: $ 11.30 ----------- See Notes to Financial Statements unaudited -------------------------------------------------------------------------------------------------------- Statement of operations for the period January 27, 2012 (commencement of operations) through April 30, 2012 (dollars in thousands) -------------------------------------------------------------------------------------------------------- Investment income: Income: Interest (net of non-U.S. taxes of $36) $ 3,857 Dividends (net of non-U.S. taxes of $9) 1,792 $ 5,649 ----------- Fees and expenses: Investment advisory services 1,096 Custodian 25 Auditing and legal 21 Registration statement and prospectus 13 Trustees' compensation 11 Reports to shareholders 3 Other 23 ----------- Total fees and expenses 1,192 ----------- Net investment income 4,457 ----------- Net realized loss and unrealized appreciation on investments, forward currency contracts and currency: Net realized gain (loss) on: Investments (648) Forward currency contracts (1,760) Currency transactions 64 (2,344) ----------- Net unrealized appreciation (depreciation) on: Investments (net of non-U.S. taxes of $3) (including unrealized appreciation of $7,123 from reorganization) 6,774 Forward currency contracts (including unrealized depreciation of $1,089 from reorganization) 1,009 Currency translations (including unrealized appreciation of $153 from reorganization) (199) 7,584 ----------- ----------- Net realized loss and unrealized appreciation on investments, forward currency contracts and currency 5,240 ----------- Net increase in net assets resulting from operations $ 9,697 =========== -------------------------------------------------------------------------------------------------------- Statement of changes in net assets (dollars in thousands) -------------------------------------------------------------------------------------------------------- (unaudited) Period ended April 30, 2012 ------------ Operations: Net investment income $ 4,457 Net realized loss on investments, forward currency contracts and currency transactions (2,344) Net unrealized appreciation on investments, forward currency contracts and currency translations 7,584 ------------ Net increase in net assets resulting from operations 9,697 ------------ Capital share transactions: Shares issued in reorganization: 35,113,792 shares 386,996 Proceeds from shares sold: 5,415,096 shares 61,274 Cost of shares repurchased: 205,001 shares (2,306) ------------ Net increase in net assets resulting from capital share transactions 445,964 ------------ Total increase in net assets 455,661 ------------ Net assets: Beginning of period -- End of period (including undistributed net investment income: $4,457) $ 455,661 ============ See Notes to Financial Statements Notes to financial statements unaudited 1. Organization Capital Emerging Markets Total Opportunities Fund (the "fund") was organized on November 18, 2011 as a Delaware statutory trust. The fund is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The fund seeks long-term growth and preservation of capital with lower volatility of returns than emerging market equities by allocating a portion of its assets to bonds and other debt securities of emerging market issuers. Capital Guardian Emerging Markets Total Opportunities Fund (the "Predecessor Fund") was reorganized and merged into Capital Emerging Markets Total Opportunities Fund, pursuant to the approval of the trustee of the Predecessor Fund and the Board of Trustees of the fund on October 26, 2011, and October 20, 2011, respectively. The Predecessor Fund transferred all of its assets and liabilities to the fund, effective at the close of business January 27, 2012. In connection with the reorganization, the fiscal year-end and tax year-end of the Predecessor Fund was changed from December 31 to October 31. 2. Significant accounting policies The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation. Security transactions and related investment income - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on bonds, notes and short-term securities are amortized daily over the expected life of the security. Dividends and distributions to shareholders - Dividends and distributions paid to shareholders are recorded on the ex-dividend date. Currency translation - Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately. 3. Valuation Capital Guardian Trust Company ("CGTC"), the fund's investment adviser values the fund's investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of the fund is the value of a single share. The fund calculates its net assets 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. Methods and inputs - The fund's investment adviser uses the following methods and inputs to establish the fair value of fund's assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve. Equity securities are generally 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 on which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security. ----------------------------------------------------------------------------------------------------------- Fixed-income class Examples of standard inputs ----------------------------------------------------------------------------------------------------------- All Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as "standard inputs") ----------------------------------------------------------------------------------------------------------- Corporate bonds & notes; convertible Standard inputs and underlying equity of the issuer securities ----------------------------------------------------------------------------------------------------------- Bonds & notes of governments & government Standard inputs and interest rate volatilities agencies ----------------------------------------------------------------------------------------------------------- When the fund's investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally 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. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more vendors. Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund's investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund's board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission ("SEC") rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser 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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of the fund is determined. Fair valuations 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. Processes and structure - The fund's board of trustees has delegated authority to the fund's investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the "Fair Valuation Committee") to administer, implement and oversee the fair value process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser's valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period, and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair value guidelines to the board of trustees with supplemental information to support the changes. The fund's board of trustees and audit committee regularly review reports that describe fair value determinations and methods. At April 30, 2012, investment securities with an aggregate value of $9,218,000 representing 2.02% of the net assets of the fund, were fair valued under guidelines adopted by the fund's board of trustees. The fund's investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes, and controls over security valuation are also subject to internal reviews including an annual control self-evaluation program facilitated by the investment adviser's compliance group. Classifications - The fund's investment adviser classifies the fund's assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser's determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund's valuation levels as of April 30, 2012 (dollars in thousands): Investment securities ----------------------------------------------------------- Level 1 Level 2 Level 3 Total ----------------------------------------------------------- Assets: Bonds and notes................................ Latin America............................... $ - $ 137,792 $ - $ 137,792 Asia-Pacific................................ - 33,288 - 33,288 Other markets............................... - 44,890 - 44,890 Equity securities Asia-Pacific................................ 100,539 - - 100,539 Other markets............................... 68,828 6,825 - 75,653 Miscellaneous.................................. 20,095 2,393 - 22,488 Short-term securities.......................... - 38,898 - 38,898 ----------------------------------------------------------- Total $ 189,462 $ 264,086 $ - $ 453,548 =========================================================== Other investments* ----------------------------------------------------------- Level 1 Level 2 Level 3 Total ----------------------------------------------------------- Assets: Unrealized appreciation on open forward currency contracts $ - $ 194 $ - $ 194 Liabilities: Unrealized depreciation on open forward currency contracts - (274) - (274) ----------------------------------------------------------- Total $ - $ (80) $ - $ (80) =========================================================== * Forward currency contracts are not included in the investment portfolio. 4. Risk factors Investing in the fund may involve certain risks including, but not limited to, those described below. Market conditions - The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund. Investing in growth-oriented stocks - Growth-oriented stocks and other equity-type securities may involve larger price swings and greater potential for loss than other types of investments. Investing in income-oriented stocks - Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests. Investing outside the United States - Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose value because of political, social or economic developments in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the United States. These risks may be heightened in connection with investments in emerging market countries. Investing in emerging market countries - Investing in countries with emerging markets and/or economies may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be more unstable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid than securities issued in countries with more developed economies or markets. Because these markets may not be as mature, there may be increased settlement risks for transactions in local securities. Investing in bonds - Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Investing in lower rated bonds - Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer's creditworthiness than higher quality debt securities. The market prices of these securities may fluctuate more than higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to lower quality, higher yielding debt securities (rated Ba1 or below or BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund's investment adviser or unrated but determined to be of equivalent quality by the fund's investment adviser). Such securities are sometimes referred to as "junk bonds." Junk bonds are considered speculative. Thinly traded securities - There may be little trading in the secondary market for particular securities, which may make them more difficult to value or sell. Management - The investment adviser to the fund actively manages the fund's investments. Consequently, the fund is subject to the risk that the techniques and risk analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. 5. Taxation and distributions Federal income taxation - The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required. As of, and during the period ended April 30, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties. The fund is not subject to examination by U.S. federal tax authorities, by state tax authorities and by tax authorities outside the U.S. for tax years before 2012. Non-U.S. taxation - Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. When the fund is taxed on either realized and/or unrealized capital gains, the fund will accrue for non-U.S. taxes as applicable. As of April 30, 2012, the fund accrued $20,000 of liabilities for non-U.S. taxes on realized and unrealized gains. Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; capital losses related to sales of certain securities within 30 days of purchase; and short-term capital gains and losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. For the period from January 27, 2012 (commencement of operations) through April 30, 2012, there were no distributions paid to shareholders. As of April 30, 2012, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows: (dollars in thousands) ---------------------------------------------------------------------------------- Gross unrealized appreciation on investment securities $ 25,925 Gross unrealized depreciation on investment securities (12,556) Net unrealized appreciation on investment securities 13,369 ---------------------------------------------------------------------------------- Cost of investment securities 440,179 ---------------------------------------------------------------------------------- 6. Fees and transactions with related parties CGTC serves as investment adviser to the fund and other funds. CGTC is wholly owned by Capital Group International, Inc., which is wholly owned by The Capital Group Companies, Inc. Expense limitations have been imposed through December 31, 2012, to limit the fund's total annual fund operating expenses to 1.10% (as a percentage of average daily net assets). Investment advisory services fee - The Investment Advisory and Service Agreement with CGTC provides for monthly fees accrued daily. The fee is 1.00% of the average daily net assets of the fund. Distribution services - American Funds Distributors,(R) Inc. ("AFD") is the principal underwriter of the fund's shares. AFD does not receive any compensation related to the sale of shares of the fund. Affiliated officers and trustees - Officers and certain trustees of the fund are or may be considered to be affiliated with CGTC and AFD. No affiliated officers and trustees received any compensation directly from the fund. 7. Restricted securities The fund has invested in certain securities for which resale may be limited (for example, in the United States, to qualified institutional buyers) or which are otherwise restricted. These securities are identified in the investment portfolio. As of April 30, 2012, the total value of restricted securities was $19,208,000, which represents 4.22% of the net assets of the fund. 8. Investment transactions and other disclosures The fund made purchases and sales of investment securities, excluding short-term securities, of $121,126,000 and $64,187,000, respectively, during the period from January 27, 2012 (commencement of operations) through April 30, 2012. 9. Fund Merger On January 27, 2012, the fund acquired all of the assets and assumed all of the liabilities of the Predecessor Fund pursuant to a plan of reorganization approved by the trustee of the Predecessor Fund and the Board of Trustees of the fund on October 26, 2011, and October 20, 2011, respectively. The acquisition was accomplished by a tax-free exchange as follows: On the close of business on January 27, 2012, 35,113,792 shares of the Predecessor Fund, valued at $386,996,070, were outstanding. After the reorganization, the fund had 35,122,866 shares valued at $387,095,166. The investment portfolio of the Predecessor Fund, with a value of $377,210,268 and identified cost of $370,087,014 were the principal assets acquired by the fund. For financial reporting purposes, assets received and shares issued by the fund were recorded at fair value; however, the cost basis of the investments received from the Predecessor Fund was carried forward to align ongoing reporting of the fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the merger, the net assets of the Predecessor Fund were $386,996,070. Because the combined investment portfolios have been managed as a single integrated portfolio since the merger was completed, it is not practicable to separate the amounts of revenue and earnings of the Predecessor Fund that have been reflected in the statement of operations since January 27, 2012, for the fund. Before reorganization After reorganization The Predecessor Fund The fund --------------------------------------------------------------------------------------------------- Net assets $386,996,070 $387,095,166 Shares outstanding 35,113,792 35,122,866 Net Asset Value per Share $11.02 $11.02 Net unrealized appreciation/(depreciation) 6,187,269 6,170,516 10. Forward currency contracts The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund's investment adviser uses forward currency contracts to manage the fund's exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. On a daily basis, the fund's investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in the fund's statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their expiration date are included in the respective receivables or payables for closed forward currency contracts in the fund's statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the statement of operations. As of April 30, 2012, the fund had open forward currency contracts to sell currencies, as shown in the following table. The open forward currency contracts shown are generally indicative of the level of activity over the reporting period. Contract amount U.S. valuation (000) (000) ----------------------- ------------------------- Unrealized (depreciation)/ Counterparty Non-U.S. U.S. Amount appreciation -------------------------------------------------------------------------------------------------------------------------- Sales: Australian dollar to U.S. dollar expiring Credit Suisse First 5/11/2012 Boston AUD235 $243 $245 $(2) Brazilian real to U.S. dollar expiring 5/16- UBS AG 6/1/2012 BRL13,728 7,250 7,155 95 British pound to U.S. dollar expiring 6/7/2012 Bank of America GBP700 1,136 1,136 _1 Czech koruna to U.S. dollar expiring 5/11/2012 Bank of America CZK6,872 363 364 (1) Euro to U.S. dollar expiring 5/8/2012 Bank of America EUR280 371 371 _1 Euro to U.S. dollar expiring 5/11 -5/21/2012 Bank of New York Mellon EUR6,475 8,492 8,571 (79) Israeli shekel to U.S. dollar expiring UBS AG 5/14/2012 ILS508 135 134 1 Korean won to U.S. dollar expiring 5/14/2012 Bank of America KRW6,337,270 5,512 5,603 (91) Mexican peso to U.S. dollar expiring 5/8/2012 Bank of America MXN97,682 7,593 7,495 98 Polish zloty to U.S. dollar expiring 5/11/2012 Bank of America PLN2,240 700 709 (9) Polish zloty to U.S. dollar expiring 5/11/2012 JPMorgan Chase Bank PLN764 239 242 (3) Singapore dollar to U.S. dollar expiring Bank of America 5/11/2012 SGD2,948 2,338 2,382 (44) Singapore dollar to U.S. dollar expiring UBS AG 5/11/2012 SGD3,285 2,610 2,655 (45) ----- Forward currency contracts -- net $(80) ===== 1 Amount less than one thousand. Financial highlights -------------------------------------------------------------------------------- For the period ended April 30, 20121,2 -------------- Net asset value, beginning of period S11.02 Income from investment operations3: Net investment income .12 Net realized loss and unrealized gains on securities .16 -------------- Total from investment operations .28 -------------- Net asset value, end of period $11.30 -------------- Total return 2.54% Net assets, end of period (in millions) $ 456 Ratios / Supplemental data: Ratio of expenses to average net assets before reimbursement(4) 1.09% Ratio of expenses to average net assets after reimbursement(4) 1.09% Ratio of net investment income to average net assets(4) 4.07% Portfolio turnover rate(5) 16.89% 1 Unaudited. 2 The fund commenced operations on January 27, 2012. 3 The per-share data is based on average shares outstanding. 4 Annualized. 5 Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year.
Beginning account value 1/27/2012
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Ending account value 4/30/2012
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Expenses paid during period*
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Annualized expense ratio
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Actual return**
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$ | 1,000.00 | $ | 1,025.41 | $ | 2.84 | 1.09 | % | ||||||||
Hypothetical 5% return before expenses**
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1,000.00 | 1,019.44 | 5.47 | 1.09 |
(a)
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The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
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(b)
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There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
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(a)(1)
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Not applicable for filing of semi-annual reports to shareholders.
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(a)(2)
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The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.
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CAPITAL EMERGING MARKETS TOTAL OPPORTUNITIES FUND
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By /s/ John B. Emerson
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John B. Emerson, President and
Principal Executive Officer
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Date: June 29, 2012
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By /s/ John B. Emerson
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John B. Emerson, President and
Principal Executive Officer
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Date: June 29, 2012
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By /s/ Kevin M. Saks
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Kevin M. Saks, Treasurer and
Principal Financial Officer
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Date: June 29, 2012
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Capital Emerging Markets Total Opportunities Fund
6455 Irvine Center Drive
Irvine, California 92618
Phone (949) 975-5000
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1.
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I have reviewed this report on Form N-CSR of Capital Emerging Markets Total Opportunities Fund;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
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a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):
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a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Capital Emerging Markets Total Opportunities Fund
6455 Irvine Center Drive
Irvine, California 92618
Phone (949) 975-5000
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1.
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I have reviewed this report on Form N-CSR of Capital Emerging Markets Total Opportunities Fund;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
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a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):
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a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Capital Emerging Markets Total Opportunities Fund
6455 Irvine Center Drive
Irvine, California 92618
Phone (949) 975-5000
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1)
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The Registrant's periodic report on Form N-CSR for the period ended April 30, 2012 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2)
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The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
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Principal Executive Officer
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Principal Financial Officer
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CAPITAL EMERGING MARKETS TOTAL OPPORTUNITIES FUND
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CAPITAL EMERGING MARKETS TOTAL OPPORTUNITIES FUND
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/s/ John B. Emerson
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/s/ Kevin M. Saks
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John B. Emerson, President
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Kevin M. Saks, Treasurer
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Date: June 29, 2012
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Date: June 29, 2012
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