N-Q 1 icanq.txt UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company Investment Company Act File Number: 811-116 The Investment Company of America (Exact Name of Registrant as specified in charter) 333 South Hope Street Los Angeles, California 90071 (Address of principal executive offices) Registrant's telephone number, including area code: (213) 486-9200 Date of fiscal year end: December 31, 2004 Date of reporting period: September 30, 2004 Vincent P. Corti Capital Research and Management Company 333 South Hope Street Los Angeles, California 90071 (name and address of agent for service) Copies to: Eric A.S. Richards, Esq. O'Melveny & Myers LLP 400 South Hope Street Los Angeles, California 90071 (Counsel for the Registrant) ITEM 1 - Schedule of Investments [American Funds (r)] THE INVESTMENT COMPANY OF AMERICA Investment portfolio September 30, 2004 unaudited Market value COMMON STOCKS -- 82.73% Shares (000) ENERGY -- 9.42% Baker Hughes Inc. 10,125,000 $ 442,665 Burlington Resources Inc. 18,100,000 738,480 ChevronTexaco Corp. 15,260,000 818,546 ConocoPhillips 1,200,000 99,420 El Paso Corp. 6,740,900 61,949 ENI SpA 37,880,000 849,467 Exxon Mobil Corp. 8,221,500 397,345 Marathon Oil Corp. 11,050,000 456,144 Murphy Oil Corp. 2,050,000 177,878 Occidental Petroleum Corp. 1,000,000 55,930 Royal Dutch Petroleum Co. (New York registered) 16,770,000 865,332 "Shell" Transport and Trading Co., PLC (ADR) (New York registered) 6,750,000 300,442 "Shell" Transport and Trading Co., PLC 2,900,000 21,304 Schlumberger Ltd. 7,850,000 528,383 TOTAL SA 2,505,000 510,485 Unocal Corp. 7,190,000 309,170 6,632,940 MATERIALS -- 6.79% Air Products and Chemicals, Inc. 700,000 38,066 Alcan Inc. 2,500,000 119,500 Alcoa Inc. 14,099,100 473,589 Alumina Ltd. 10,000,000 40,857 Barrick Gold Corp. 9,762,900 205,411 BHP Billiton Ltd. 9,412,655 98,265 Dow Chemical Co. 27,582,300 1,246,168 E.I. du Pont de Nemours and Co. 2,950,000 126,260 Georgia-Pacific Corp., Georgia-Pacific Group 8,599,298 309,145 International Paper Co. 7,997,235 323,168 MeadWestvaco Corp. 3,800,000 121,220 Newmont Mining Corp. 9,500,000 432,535 Phelps Dodge Corp. 800,000 73,624 Placer Dome Inc. 10,000,000 198,800 Rio Tinto PLC 12,000,000 323,045 Rohm and Haas Co. 6,600,000 283,602 Weyerhaeuser Co. 5,475,000 363,978 4,777,233 INDUSTRIALS -- 11.03% 3M Co. 2,700,000 215,919 Boeing Co. 13,000,000 671,060 Burlington Northern Santa Fe Corp. 9,200,000 352,452 Caterpillar Inc. 12,300,000 989,535 Cooper Industries, Ltd., Class A 2,500,000 147,500 Cummins Inc. 1,700,000 125,613 Deere & Co. 8,200,000 529,310 FedEx Corp. 3,870,000 331,620 Fluor Corp. 824,300 36,698 General Dynamics Corp. 3,372,900 344,373 General Electric Co. 28,750,000 965,425 Illinois Tool Works Inc. 2,500,000 232,925 Lockheed Martin Corp. 8,560,000 477,477 Norfolk Southern Corp. 1,113,200 33,107 Northrop Grumman Corp. 4,680,000 249,584 Parker Hannifin Corp. 2,500,000 147,150 Pitney Bowes Inc. 1,000,000 44,100 Raytheon Co. 11,946,000 453,709 Siemens AG 1,000,000 73,574 Southwest Airlines Co. 9,000,000 122,580 Tyco International Ltd. 29,600,000 907,536 United Parcel Service, Inc., Class B 2,000,000 151,840 United Technologies Corp. 1,400,000 130,732 Waste Management, Inc. 1,100,000 30,074 7,763,893 CONSUMER DISCRETIONARY -- 9.59% Best Buy Co., Inc. 2,000,000 108,480 Carnival Corp., units 8,000,000 378,320 Comcast Corp., Class A(1) 12,107,650 341,920 Comcast Corp., Class A, special nonvoting stock(1) 3,000,000 83,760 Delphi Corp. 17,000,000 157,930 Dollar General Corp. 750,000 15,113 Dow Jones & Co., Inc. 1,887,000 76,631 eBay Inc.(1) 800,000 73,552 Ford Motor Co. 2,500,000 35,125 Gap, Inc. 3,100,000 57,970 General Motors Corp. 15,450,000 656,316 Honda Motor Co., Ltd. 1,825,000 88,660 Interpublic Group of Companies, Inc.(1) 8,100,000 85,779 Knight-Ridder, Inc. 550,500 36,030 Kohl's Corp.(1) 2,600,000 125,294 Koninklijke Philips Electronics NV 2,250,000 51,555 Liberty Media Corp., Class A(1) 16,280,000 141,962 Liberty Media International, Inc., Class A(1) 814,000 27,157 Limited Brands, Inc. 20,749,400 462,504 Lowe's Companies, Inc. 20,368,300 1,107,017 May Department Stores Co. 4,800,000 123,024 McDonald's Corp. 1,600,000 44,848 Newell Rubbermaid Inc. 2,000,000 40,080 Target Corp. 21,100,000 954,775 Time Warner Inc.(1) 57,900,000 934,506 TJX Companies, Inc. 5,750,000 126,730 Toyota Motor Corp. 3,750,000 143,968 Viacom Inc., Class A 600,000 20,400 Viacom Inc., Class B, nonvoting 7,500,000 251,700 6,751,106 CONSUMER STAPLES -- 8.49% Albertson's, Inc. 976,500 23,368 Altria Group, Inc. 56,000,000 2,634,240 Anheuser-Busch Companies, Inc. 3,500,000 174,825 Avon Products, Inc. 6,520,000 284,794 Coca-Cola Co. 4,320,000 173,016 General Mills, Inc. 6,035,000 270,972 H.J. Heinz Co. 7,950,000 286,359 Kimberly-Clark Corp. 500,000 32,295 Kraft Foods Inc., Class A 2,100,000 66,612 PepsiCo, Inc. 11,000,000 535,150 Procter & Gamble Co. 2,660,000 143,959 Reynolds American Inc. 4,461,666 303,572 Sara Lee Corp. 9,816,100 224,396 Unilever NV (New York registered) 5,650,000 326,570 UST Inc. 2,000,000 80,520 Walgreen Co. 8,595,000 307,959 Wal-Mart Stores, Inc. 2,000,000 106,400 5,975,007 HEALTH CARE -- 5.43% Abbott Laboratories 4,600,000 194,856 Aetna Inc. 2,000,000 199,860 Applera Corp. - Applied Biosystems Group 5,170,500 97,567 AstraZeneca PLC (ADR) 4,534,500 186,504 AstraZeneca PLC (Sweden) 5,909,500 244,389 AstraZeneca PLC (United Kingdom) 5,393,900 221,326 Becton, Dickinson and Co. 1,500,000 77,550 Bristol-Myers Squibb Co. 25,407,600 601,398 Eli Lilly and Co. 14,510,000 871,326 Guidant Corp. 1,500,000 99,060 HCA Inc. 5,562,400 212,206 Merck & Co., Inc. 2,700,000 89,100 Novartis AG (ADR) 256,556 11,973 Pfizer Inc 11,422,480 349,528 Schering-Plough Corp. 5,111,300 97,421 WellPoint Health Networks Inc., Class A(1) 2,000,000 210,180 Wyeth 1,500,000 56,100 3,820,344 FINANCIALS -- 11.98% Allstate Corp. 8,050,000 386,320 American International Group, Inc. 13,063,900 888,215 Aon Corp. 2,183,800 62,762 Bank of America Corp. 28,272,574 1,225,051 Capital One Financial Corp. 3,000,000 221,700 Chubb Corp. 5,100,000 358,428 Citigroup Inc. 2,225,000 98,167 Fannie Mae 19,760,000 1,252,784 Freddie Mac 3,150,000 205,506 Hartford Financial Services Group, Inc. 2,700,000 167,211 HSBC Holdings PLC (ADR) 1,079,588 86,151 HSBC Holdings PLC (United Kingdom) 30,697,111 487,707 J.P. Morgan Chase & Co. 23,336,200 927,147 Lincoln National Corp. 1,700,000 79,900 MBNA Corp. 4,800,000 120,960 SAFECO Corp. 3,650,000 166,623 St. Paul Travelers Companies, Inc. 3,300,000 109,098 U.S. Bancorp 11,250,000 325,125 Washington Mutual, Inc. 14,600,000 570,568 Wells Fargo & Co. 7,630,000 454,977 XL Capital Ltd., Class A 3,250,000 240,468 8,434,868 INFORMATION TECHNOLOGY -- 9.53% Agilent Technologies, Inc.(1) 4,000,000 86,280 Altera Corp.(1) 2,500,000 48,925 Analog Devices, Inc. 4,250,000 164,815 Applied Materials, Inc.(1) 15,550,000 256,420 Automatic Data Processing, Inc. 5,375,000 222,095 Cisco Systems, Inc.(1) 27,928,800 505,511 Electronic Data Systems Corp. 9,600,000 186,144 EMC Corp.(1) 3,500,000 40,390 First Data Corp. 2,100,000 91,350 Hewlett-Packard Co. 32,200,000 603,750 Hitachi, Ltd. 30,000,000 181,769 Intel Corp. 640,000 12,838 International Business Machines Corp. 7,095,000 608,325 KLA-Tencor Corp.(1) 2,275,000 94,367 Linear Technology Corp. 5,560,000 201,494 Maxim Integrated Products, Inc. 5,900,000 249,511 Micron Technology, Inc.(1) 12,500,000 150,375 Microsoft Corp. 38,680,000 1,069,502 Motorola, Inc. 7,675,000 138,457 Sabre Holdings Corp., Class A 6,009,680 147,417 Samsung Electronics Co., Ltd. 200,000 79,583 Sanmina-SCI Corp.(1) 11,850,000 83,543 Solectron Corp.(1) 23,128,408 114,486 Sun Microsystems, Inc.(1) 79,500,000 321,180 Taiwan Semiconductor Manufacturing Co. Ltd. 148,883,129 189,774 Texas Instruments Inc. 32,320,200 687,774 Xilinx, Inc. 6,400,000 172,800 6,708,875 TELECOMMUNICATION SERVICES -- 7.20% ALLTEL Corp. 5,300,000 291,023 AT&T Corp. 17,897,500 256,292 AT&T Wireless Services, Inc.(1) 10,482,700 154,934 BellSouth Corp. 21,374,700 579,682 Deutsche Telekom AG(1) 12,046,000 223,627 SBC Communications Inc. 61,450,000 1,594,628 Sprint Corp. - FON Group 29,499,270 593,820 Telefonica, SA 17,294,261 258,953 Verizon Communications Inc. 19,800,000 779,724 Vodafone Group PLC 40,000,000 95,834 Vodafone Group PLC (ADR) 10,000,000 241,100 5,069,617 UTILITIES -- 2.40% Ameren Corp. 2,307,000 106,468 American Electric Power Co., Inc. 5,250,000 167,790 Dominion Resources, Inc. 7,131,912 465,357 Duke Energy Corp. 10,000,000 228,900 Exelon Corp. 3,000,000 110,070 FirstEnergy Corp. 3,238,500 133,038 FPL Group, Inc. 2,000,000 136,640 Public Service Enterprise Group Inc. 5,000,000 213,000 Southern Co. 4,386,500 131,507 1,692,770 MISCELLANEOUS -- 0.87% Other common stocks in initial period of acquisition 616,318 TOTAL COMMON STOCKS (cost: $43,008,779,000) 58,242,971 Shares or principal CONVERTIBLE SECURITIES -- 0.43% amount ENERGY -- 0.04% Williams Companies, Inc. 9.00% FELINE PACS convertible preferred 2005 2,000,000 units 27,000 CONSUMER DISCRETIONARY -- 0.01% Interpublic Group of Companies, Inc., Series A, 5.375% convertible preferred 2006 115,000 4,789 FINANCIALS -- 0.16% Capital One Financial Corp. 6.25% Upper DECS 2005 1,450,000 units 76,763 Chubb Corp. 7.00% convertible preferred 2005 1,400,000 units 39,200 115,963 INFORMATION TECHNOLOGY -- 0.18% Agilent Technologies, Inc. 3.00% convertible debentures 2021(2) $6,655,000 6,705 Agilent Technologies, Inc. 3.00% convertible debentures 2021(2),(3) $4,445,000 4,478 Motorola, Inc. 7.00% convertible preferred 2004 2,400,000 units 120,192 131,375 TELECOMMUNICATION SERVICES -- 0.04% ALLTEL Corp. 7.75% convertible preferred 2005 500,000 units 25,880 TOTAL CONVERTIBLE SECURITIES (cost: $305,220,000) 305,007 unaudited Principal amount Market value BONDS AND NOTES -- 2.90% (000) (000) CONSUMER DISCRETIONARY -- 0.11% AOL Time Warner Inc. 5.625% 2005 $ 21,045 $ 21,425 General Motors Acceptance Corp. 6.875% 2011 50,000 52,524 73,949 TELECOMMUNICATION SERVICES -- 1.16% AT&T Corp. 8.05% 2011(2) 247,575 278,212 AT&T Wireless Services, Inc. 7.50% 2007 50,000 55,118 AT&T Wireless Services, Inc. 8.125% 2012 30,000 36,303 Sprint Capital Corp. 7.90% 2005 202,710 207,693 Sprint Capital Corp. 8.375% 2012 197,500 239,542 816,868 MORTGAGE-BACKED OBLIGATIONS(4) -- 0.84% Fannie Mae 6.00% 2017 400,528 420,383 Fannie Mae 6.50% 2017 164,330 174,210 594,593 GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS -- 0.79% U.S. Treasury Obligations 1.50% 2005 555,000 554,134 TOTAL BONDS AND NOTES (cost: $1,885,878,000) 2,039,544 SHORT-TERM SECURITIES -- 14.38% Abbott Laboratories Inc. 1.57%-1.74% due 10/21-11/18/2004(3) 154,900 154,644 AIG Funding, Inc. 1.50% due 10/8/2004 10,000 9,997 American General Finance Corp. 1.55%-1.67% due 10/15-11/16/2004 80,000 79,866 American Express Credit Corp. 1.54-1.73% due 10/20-11/1/2004 125,000 124,843 Anheuser-Busch Cos. Inc. 1.70%-1.78% due 10/28-12/13/2004(3) 97,000 96,770 Bank of America Corp. 1.64%-1.73% due 11/3-12/13/2004 77,200 77,019 Ranger Funding Co. LLC 1.72%-1.80% due 10/19-12/10/2004(3) 120,000 119,764 BellSouth Corp. 1.53% due 10/1/2004(3) 50,000 49,998 CAFCO, LLC 1.53%-1.88% due 10/4-12/17/2004(3) 200,000 199,639 Caterpillar Financial Services Corp. 1.75% due 10/19/2004(3) 25,000 24,977 Caterpillar Financial Services Corp. 1.60%-1.69% due 11/2-11/30/2004 58,310 58,199 ChevronTexaco Corp. 1.70% due 11/19/2004 40,000 39,903 Clipper Receivables Co., LLC 1.61%-1.79% due 10/8-11/15/2004(3) 119,000 118,872 State Street Bank & Trust 1.74%-1.80% due 11/22/2004 75,000 74,996 Coca-Cola Co. 1.52%-1.74% due 10/8-12/3/2004 218,500 218,055 Colgate-Palmolive Co. 1.74% due 10/20/2004(3) 25,000 24,976 DuPont (E.I.) de Nemours & Co. 1.52%-1.80% due 10/5-12/17/2004 200,050 199,702 Eli Lilly and Co. 1.50%-1.69% due 10/8-11/10/2004(3) 135,700 135,530 Exxon Asset Management Co. 1.50%-1.65% due 10/6-10/27/2004(3) 100,000 99,926 Exxon Project Investment Corp. 1.50% due 10/4/2004(3) 50,000 49,992 Fannie Mae 1.69%-1.75% due 11/8-11/22/2004 87,800 87,592 FCAR Owner Trust I 1.56%-1.79% due 10/20-11/17/2004 160,000 159,757 Federal Farm Credit Banks 1.70%-1.81% due 10/27-12/23/2004 175,000 174,469 Federal Home Loan Bank 1.50%-1.84% due 10/6-12/27/2004 599,907 598,837 Freddie Mac 1.51%-1.795% due 10/18-12/20/2004 554,862 553,887 Gannett Co. 1.50%-1.75% due 10/13-11/4/2004(3) 90,400 90,303 General Electric Capital Corp.1.62%-1.84% due 11/2-12/20/2004 125,000 124,679 General Electric Capital Services, Inc. 1.50%-1.75% due 10/12-11/9/2004 100,000 99,877 Harley-Davidson Funding Corp. 1.49% due 10/5/2004(3) 20,200 20,196 Harvard University 1.71% due 11/23/2004 30,000 29,919 Hershey Foods Corp. 1.56%-1.75% due 11/1-11/19/2004(3) 46,000 45,927 Hewlett-Packard Co. 1.63%-1.77% due 10/29/2004(3) 126,300 126,126 Household Finance Corp. 1.55%-1.75% due 10/1-11/1/2004 40,800 40,774 IBM Capital Inc. 1.50%-1.67% due 10/6-10/20/2004(3) 75,000 74,958 IBM Credit Corp. 1.85% due 10/1/2004 100,000 99,995 International Bank for Reconstruction and Development 1.52%-1.76% due 10/12-12/2/2004 360,680 360,061 J.P. Morgan Chase & Co. 1.57%-1.75% due 10/19-11/9/2004 100,000 99,839 Park Avenue Receivables Corp., LLC 1.50%-1.78% due 10/4-11/2/2004(3) 91,500 91,397 Minnesota Mining and Manufacturing Co. 1.62%-1.71% due 10/22/2004 50,000 49,949 Netjets Inc. 1.53%-1.83% due 10/14-12/1/2004(3) 74,200 74,091 New Center Asset Trust 1.77% due 11/5/2004 31,500 31,444 New Center Asset Trust Plus 1.53%-1.80% due 10/13-12/8/2004 100,000 99,753 PepsiCo Inc. 1.67%-1.73% due 10/19-10/28/2004(3) 72,300 72,222 Pfizer Inc 1.50%-1.74% due 10/7-11/19/2004(3) 190,700 190,409 Private Export Funding Corp. 1.52%-1.85% due 10/14-12/28/2004(3) 170,000 169,536 Procter & Gamble Co. 1.52%-1.73% due 10/25-11/22/2004(3) 195,000 194,623 Tenessee Valley Authority 1.60%-1.76% due 10/21-12/16/2004 212,000 211,357 Three Pillars Funding, LLC 1.70%-1.85% due 10/1-10/27/2004(3) 200,000 199,903 Triple-A One Funding Corp. 1.62%-1.80% due 10/4-11/8/2004(3) 101,198 101,096 U.S. Treasury Bills 1.18%-1.79% due 10/7/2004-1/27/2005 3,326,800 3,318,549 USAA Capital Corp. 1.60% due 11/15/2004 25,000 24,944 Variable Funding Capital Corp. 1.67%-1.80% due 10/8-11/19/2004(3) 175,000 174,617 Wal-Mart Stores Inc. 1.55%-1.68% due 10/5-11/16/2004(3) 228,515 228,205 Wells Fargo & Co. 1.60%-1.79% due 10/6-11/15/2004 150,000 150,000 TOTAL SHORT-TERM SECURITIES (cost: $10,127,097,000) 10,126,959 TOTAL INVESTMENT SECURITIES (cost: $55,326,974,000) 70,714,481 New Taiwanese Dollar (cost: $9,177,000) NT$313,996 9,243 Other assets less liabilities (320,311) NET ASSETS $70,403,413
Miscellaneous securities include holdings in their initial period of acquisition that have not previously been publicly disclosed. (1) Security did not produce income during the last 12 months. (2) Coupon rate may change periodically. (3) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $2,933,175,000, which represented 4.17% of the net assets of the fund. (4) Pass-through securities backed by a pool of mortgages or other loans on which principal payments are periodically made. Therefore, the effective maturities are shorter than the stated maturities. ADR = American Depositary Receipts Federal income tax information (dollars in thousands) Gross unrealized appreciation on investment securities $16,499,479 Gross unrealized depreciation on investment securities (1,108,509) Net unrealized appreciation on investment securities 15,390,970 Cost of investment securities for federal income tax purposes 55,332,754
ITEM 2 - Controls and Procedures 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. There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 3 - Exhibits The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. The Investment Company of America By /s/ R. Michael Shanahan ---------------------------------------------------- R. Michael Shanahan, Chairman and CEO Date: November 26, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ R. Michael Shanahan ----------------------------------------------- R. Michael Shanahan, Chairman and CEO Date: November 26, 2004 By /s/ Thomas M. Rowland ----------------------------------------------- Thomas M. Rowland, Treasurer and PFO Date: November 26, 2004