Unassociated Document

Fundamental InvestorsSM

Investment portfolio

September 30, 2012

unaudited

Common stocks — 93.78%	Shares			Value (000)

INFORMATION TECHNOLOGY — 15.10%
Apple Inc.		1,711,000		$	1,141,682
Microsoft Corp.		28,680,000			854,090
Google Inc., Class A1		1,119,800			844,889
Texas Instruments Inc.		21,705,300			597,981
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		25,665,171			406,023
Taiwan Semiconductor Manufacturing Co. Ltd.		55,955,000			171,415
Oracle Corp.		12,927,950			407,101
Maxim Integrated Products, Inc.		12,687,000			337,728
Avago Technologies Ltd.		9,555,000			333,135
Samsung Electronics Co. Ltd.		237,531			287,664
EMC Corp.1		10,500,000			286,335
Rackspace Hosting, Inc.1		3,660,000			241,889
Amphenol Corp.		4,100,000			241,408
Analog Devices, Inc.		6,000,000			235,140
ASML Holding NV		1,869,568			99,920
ASML Holding NV (New York registered)		1,240,000			66,563
Corning Inc.		11,020,000			144,913
MasterCard Inc., Class A		300,000			135,444
TE Connectivity Ltd.		3,845,000			130,769
Intuit Inc.		2,200,000			129,536
ASM Pacific Technology Ltd.		10,855,000			128,442
Arm Holdings PLC		9,600,000			89,137
Visa Inc., Class A		600,000			80,568
Infineon Technologies AG		11,600,000			73,609
FLIR Systems, Inc.		3,600,000			71,910
Linear Technology Corp.		1,860,000			59,241
LinkedIn Corp., Class A1		436,628			52,570
Fidelity National Information Services, Inc.		1,607,412			50,183
Yahoo! Inc.1		2,989,500			47,757
Autodesk, Inc.1		1,166,200			38,916
					7,785,958

CONSUMER DISCRETIONARY — 13.59%
Walt Disney Co.		7,000,000			365,960
Starbucks Corp.		7,000,000			355,250
Macy’s, Inc.		5,800,000			218,196
Daimler AG		4,325,000			209,336
McGraw-Hill Companies, Inc.		2,910,900			158,906
Shaw Communications Inc., Class B, nonvoting		6,000,000			123,000
DIRECTV1		2,250,000			118,035
Johnson Controls, Inc.		4,100,000			112,340
BorgWarner Inc.1		1,500,000			103,665
General Motors Co.1		4,000,000			91,000
Discovery Communications, Inc., Class A1		1,000,000			59,630
Time Warner Cable Inc.		500,000			47,530
Lowe’s Companies, Inc.		3,430,000			103,723
Hyundai Mobis Co., Ltd.		351,000			98,059
Home Depot, Inc.		28,428,000			1,716,198
Time Warner Inc.		14,110,000			639,606
Virgin Media Inc.		13,385,000			394,054
Ctrip.com International, Ltd. (ADR)1		2,730,000			46,082
Toyota Motor Corp.		930,000			36,228
Comcast Corp., Class A		14,900,800			533,002
Marriott International, Inc., Class A		3,193,545			124,868
Penn National Gaming, Inc.1		1,030,571			44,418
Expedia, Inc.		3,714,000			214,818
SES SA, Class A (FDR)		4,517,992			122,881
Amazon.com, Inc.1		3,242,800			824,709
Chipotle Mexican Grill, Inc.1		379,832			120,612
Liberty Media Corp., Class A1		65,785			6,853
Industria de Diseño Textil, SA		120,000			14,901
					7,003,860

ENERGY — 12.97%
Royal Dutch Shell PLC, Class B (ADR)		5,862,700			418,011
Royal Dutch Shell PLC, Class A (ADR)		3,690,000			256,123
Suncor Energy Inc.		19,735,832			649,229
Chevron Corp.		3,547,763			413,527
FMC Technologies, Inc.1		8,830,000			408,829
Enbridge Inc.		9,638,689			376,488
Kinder Morgan, Inc.		10,010,645			355,578
ConocoPhillips		6,000,000			343,080
Crescent Point Energy Corp.		7,554,200			334,487
Occidental Petroleum Corp.		3,400,000			292,604
Transocean Ltd.		5,665,000			254,302
Denbury Resources Inc.1		15,440,000			249,510
Cimarex Energy Co.		4,230,000			247,667
Concho Resources Inc.1		2,365,000			224,084
Baker Hughes Inc.		4,500,000			203,535
TOTAL SA		3,850,000			190,971
Tenaris SA (ADR)		4,130,000			168,380
Imperial Oil Ltd.		3,608,739			166,103
Murphy Oil Corp.		2,740,000			147,111
Technip SA		1,225,000			136,183
Oceaneering International, Inc.		2,449,764			135,349
Phillips 66		2,750,000			127,518
Noble Energy, Inc.		1,300,000			120,523
EOG Resources, Inc.		1,000,000			112,050
CONSOL Energy Inc.		3,700,000			111,185
Talisman Energy Inc.		7,500,000			99,900
Baytex Energy Corp.		2,025,000			96,234
Petróleo Brasileiro SA – Petrobras, ordinary nominative (ADR)		1,960,000			44,962
INPEX CORP.		858			5,118
					6,688,641

FINANCIALS — 11.95%
Citigroup Inc.		23,326,000			763,227
Wells Fargo & Co.		21,928,500			757,191
American Express Co.		9,770,000			555,522
ACE Ltd.		5,300,000			400,680
BlackRock, Inc.		2,100,000			374,430
CME Group Inc., Class A		5,225,500			299,421
Legal & General Group PLC		121,784,921			259,392
Weyerhaeuser Co.1		9,254,731			241,919
Charles Schwab Corp.		18,400,000			235,336
SunTrust Banks, Inc.		8,250,000			233,228
Digital Realty Trust, Inc.		3,295,000			230,156
Marsh & McLennan Companies, Inc.		6,620,000			224,617
Aon PLC, Class A		3,360,000			175,694
Goldman Sachs Group, Inc.		1,530,000			173,930
PNC Financial Services Group, Inc.		2,600,000			164,060
Moody’s Corp.		3,360,000			148,411
XL Group PLC		6,000,000			144,180
Jefferies Group, Inc.		9,885,000			135,326
AMP Ltd.		26,993,082			121,240
CNO Financial Group, Inc.2		11,900,000			114,835
U.S. Bancorp		2,672,000			91,650
American Tower Corp.		1,000,000			71,390
CapitalSource Inc.		6,860,954			52,006
Canadian Western Bank		1,500,000			45,713
Industrial and Commercial Bank of China Ltd., Class H		70,000,000			41,346
Synovus Financial Corp.		17,400,000			41,238
New York Community Bancorp, Inc.		2,590,000			36,674
ICICI Bank Ltd.		600,000			12,044
AXA SA		600,000			8,936
Hospitality Properties Trust		223,018			5,303
					6,159,095

INDUSTRIALS — 11.07%
General Electric Co.		29,500,000			669,945
Parker-Hannifin Corp.		7,350,000			614,313
Lockheed Martin Corp.		6,558,200			612,405
Union Pacific Corp.		4,285,000			508,629
Deere & Co.		4,815,000			397,189
Schneider Electric SA		5,883,764			348,219
Boeing Co.		4,900,000			341,138
Aggreko PLC		6,589,717			246,128
Fastenal Co.		5,000,000			214,950
Rockwell Automation		3,000,000			208,650
Honeywell International Inc.		2,800,000			167,300
MTU Aero Engines Holding AG		1,835,346			146,581
Precision Castparts Corp.		800,000			130,672
Cummins Inc.		1,410,000			130,016
Siemens AG		1,220,000			121,674
Caterpillar Inc.		1,370,000			117,875
United Technologies Corp.		1,500,000			117,435
Waste Management, Inc.		3,400,000			109,072
CSX Corp.		4,675,000			97,006
Stericycle, Inc.1		1,000,000			90,520
Meggitt PLC		12,134,211			77,378
Northrop Grumman Corp.		1,032,723			68,604
Grafton Group PLC, units2		15,037,000			65,506
Ryanair Holdings PLC (ADR)1		1,850,000			59,663
PACCAR Inc		762,619			30,524
Experian PLC		870,000			14,456
					5,705,848

HEALTH CARE — 11.05%
Merck & Co., Inc.		39,451,664			1,779,270
Baxter International Inc.		10,236,755			616,867
Roche Holding AG		3,180,000			594,073
Bristol-Myers Squibb Co.		16,550,000			558,563
Gilead Sciences, Inc.1		6,092,468			404,113
Pfizer Inc		14,720,000			365,792
Cardinal Health, Inc.		7,005,000			272,985
Regeneron Pharmaceuticals, Inc.1		1,490,000			227,463
Quest Diagnostics Inc.		3,500,000			222,005
AstraZeneca PLC (United Kingdom)		3,000,000			143,152
AstraZeneca PLC (ADR)		700,000			33,502
Vertex Pharmaceuticals Inc.1		1,965,100			109,947
Intuitive Surgical, Inc.1		215,000			106,561
Hospira, Inc.1		2,975,000			97,640
UnitedHealth Group Inc.		1,725,000			95,582
Johnson & Johnson		1,000,000			68,910
					5,696,425

MATERIALS — 6.64%
LyondellBasell Industries NV, Class A		9,665,000			499,294
Dow Chemical Co.		17,039,900			493,476
Potash Corp. of Saskatchewan Inc.		8,785,100			381,449
Syngenta AG		1,000,000			373,737
FMC Corp.		6,178,000			342,138
E.I. du Pont de Nemours and Co.		6,000,000			301,620
Praxair, Inc.		2,305,000			239,443
Alcoa Inc.		16,000,000			141,600
Cliffs Natural Resources Inc.		3,340,000			130,694
MeadWestvaco Corp.		3,350,000			102,510
Celanese Corp., Series A		2,000,000			75,820
Sigma-Aldrich Corp.		980,000			70,531
Mosaic Co.		1,000,000			57,610
Nucor Corp.		1,500,000			57,390
HudBay Minerals Inc.		5,000,000			49,232
Steel Dynamics, Inc.		4,248,000			47,705
Newmont Mining Corp.		709,581			39,744
CRH PLC		549,818			10,598
Holcim Ltd		160,000			10,190
					3,424,781

CONSUMER STAPLES — 4.64%
Costco Wholesale Corp.		3,930,000			393,491
Philip Morris International Inc.		4,250,000			382,245
CVS/Caremark Corp.		6,705,000			324,656
PepsiCo, Inc.		4,550,000			322,003
Procter & Gamble Co.		3,600,000			249,696
Diageo PLC		6,500,000			182,581
Unilever NV, depository receipts		4,290,000			151,769
Coca-Cola Amatil Ltd.		10,725,000			150,856
British American Tobacco PLC		2,530,000			129,897
Altria Group, Inc.		1,610,000			53,758
Avon Products, Inc.		1,500,000			23,925
Pernod Ricard SA		130,000			14,586
Nestlé SA		230,000			14,502
					2,393,965

UTILITIES — 2.45%
PG&E Corp.		7,301,000			311,534
Edison International		5,250,000			239,872
National Grid PLC		21,417,626			236,217
American Water Works Co., Inc.		4,500,000			166,770
FirstEnergy Corp.		2,000,000			88,200
PPL Corp.		2,912,201			84,599
Exelon Corp.		2,370,200			84,332
Calpine Corp.1		1,725,000			29,842
GDF SUEZ		1,040,779			23,272
					1,264,638

TELECOMMUNICATION SERVICES — 2.23%
Verizon Communications Inc.		16,100,000			733,677
SOFTBANK CORP.		4,450,000			180,190
América Móvil, SAB de CV, Series L (ADR)		5,150,000			131,016
Koninklijke KPN NV		9,016,289			68,892
AT&T Inc.		1,000,000			37,700
					1,151,475

MISCELLANEOUS — 2.09%
Other common stocks in initial period of acquisition					1,079,460


Total common stocks (cost: $36,274,113,000)					48,354,146



Warrants — 0.04%

ENERGY — 0.04%
Kinder Morgan, Inc., warrants, expire 20171		5,088,000			17,757


Total warrants (cost: $9,820,000)					17,757


	Principal amount
Short-term securities — 6.50%		(000	)

U.S. Treasury Bills 0.111%–0.155% due 10/18/2012–8/22/2013	$	813,500			813,220
Fannie Mae 0.13%–0.16% due 12/5/2012–3/13/2013		482,100			481,832
Freddie Mac 0.117%–0.18% due 10/4/2012–3/18/2013		415,643			415,492
Federal Farm Credit Banks 0.10%–0.22% due 10/2/2012–8/16/2013		379,000			378,800
Federal Home Loan Bank 0.11%–0.17% due 10/10/2012–1/18/2013		321,650			321,597
Procter & Gamble Co. 0.14% due 10/31–11/13/20123		239,700			239,666
Straight-A Funding LLC 0.18% due 10/22–12/18/20123		115,000			114,976
Wells Fargo & Co. 0.16% due 11/16/2012		49,000			48,982
Variable Funding Capital Corp. 0.16% due 10/9/20123		42,700			42,697
Regents of the University of California 0.14%–0.17% due 10/9–10/22/2012		75,555			75,550
United Technologies Corp. 0.12%–0.14% due 10/23–10/24/20123		75,000			74,993
E.I. duPont de Nemours and Co. 0.15%–0.16% due 11/1–11/13/20123		63,800			63,789
Private Export Funding Corp. 0.25%–0.28% due 11/26/2012–2/8/20133		60,000			59,944
Wal-Mart Stores, Inc. 0.11%–0.12% due 10/9–10/15/20123		51,800			51,799
Jupiter Securitization Co., LLC 0.17% due 10/10/20123		50,000			49,998
John Deere Credit Ltd. 0.15%–0.16% due 10/9–11/6/20123		45,100			45,095
Paccar Financial Corp. 0.13%–0.14% due 10/9–10/15/2012		35,900			35,898
Google Inc. 0.14% due 11/1/20123		29,300			29,295
Coca-Cola Co. 0.18% due 12/21/20123		8,400			8,397

Total short-term securities (cost: $3,351,819,000)					3,352,020


Total investment securities (cost: $39,635,752,000)				$	51,723,923
Other assets less liabilities					(164,937	)

Net assets				$	51,558,986

As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.

1Security did not produce income during the last 12 months.

2The fund owns 5% or more of the outstanding voting shares of this company. See the table below for additional information.

3Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. 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 $780,649,000, which represented 1.51% of the net assets of the fund.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. Further details on these holdings and related transactions during the nine months ended September 30, 2012, appear below.

	Beginning shares		Additions		Reductions		Ending shares			Dividend income (000	)		Value of affiliate at 9/30/2012 (000	)

CNO Financial Group, Inc.		11,900,000		—		—		11,900,000	$	476		$	114,835
Grafton Group PLC, units		15,037,000		—		—		15,037,000		1,500			65,506
									$	1,976		$	180,341

Valuation disclosures

Capital Research and Management Company (“CRMC”), 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 each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. 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.

Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the 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 securities	Standard inputs and underlying equity of the issuer

Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities

Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates,
	delinquency and loss assumptions, collateral characteristics, credit
	enhancements and specific deal information

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 fund’s 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.

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 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 each share class 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 valuation 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 valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

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 additional 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 table on the following page presents the fund’s valuation levels as of September 30, 2012 (dollars in thousands):

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Common stocks:
Information technology	$	7,785,958	$	—	$	—	$	7,785,958
Consumer discretionary		7,003,860		—		—		7,003,860
Energy		6,688,641		—		—		6,688,641
Financials		6,159,095		—		—		6,159,095
Industrials		5,705,848		—		—		5,705,848
Health care		5,696,425		—		—		5,696,425
Materials		3,424,781		—		—		3,424,781
Consumer staples		2,393,965		—		—		2,393,965
Utilities		1,264,638		—		—		1,264,638
Telecommunication services		1,151,475		—		—		1,151,475
Miscellaneous		1,079,460		—		—		1,079,460
Warrants		17,757		—		—		17,757
Short-term securities		—		3,352,020		—		3,352,020
Total	$	48,371,903	$	3,352,020	$	—	$	51,723,923

Federal income tax information	(dollars in thousands)

Gross unrealized appreciation on investment securities	$	13,586,195
Gross unrealized depreciation on investment securities		(1,507,645	)
Net unrealized appreciation on investment securities		12,078,550
Cost of investment securities for federal income tax purposes		39,645,373

Key to abbreviations

ADR = American Depositary Receipts

FDR = Fiduciary Depositary Receipts

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.

MFGEFPX-010-1112O-S32849

ITEM 2 – Controls and Procedures

	AMERICAN FUNDS FUNDAMENTAL INVESTORS

	By /s/ Paul F. Roye
	Paul F. Roye, Executive Vice President and Principal Executive Officer

	Date: November 28, 2012