N-Q 1 icanq.txt UNITED STATES SECURITIES 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, 2005 Date of reporting period: March 31, 2005 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 [logo - American Funds (r)] THE INVESTMENT COMPANY OF AMERICA Investment portfolio March 31, 2005 unaudited Market value Common stocks -- 83.53% Shares (000) ENERGY -- 10.46% Baker Hughes Inc. 10,875,000 $ 483,829 Burlington Resources Inc. 16,940,400 848,206 ChevronTexaco Corp. 15,260,000 889,811 ConocoPhillips 1,200,000 129,408 ENI SpA 37,880,000 983,965 Exxon Mobil Corp. 7,285,200 434,198 Halliburton Co. 5,500,000 237,875 Marathon Oil Corp. 11,050,000 518,466 Murphy Oil Corp. 2,050,000 202,396 Occidental Petroleum Corp. 1,000,000 71,170 Royal Dutch Petroleum Co. (New York registered) 17,470,000 1,048,899 "Shell" Transport and Trading Co., PLC (ADR) (New York registered) 7,000,000 380,520 "Shell" Transport and Trading Co., PLC 2,900,000 26,004 Schlumberger Ltd. 8,600,000 606,128 TOTAL SA 2,505,000 586,080 Unocal Corp. 6,617,000 408,203 7,855,158 MATERIALS -- 6.75% Air Products and Chemicals, Inc. 700,000 44,303 Alcan Inc. 2,500,000 94,800 Alcoa Inc. 15,826,400 480,964 Alumina Ltd. 10,000,000 45,541 Barrick Gold Corp. 12,500,000 299,500 BHP Billiton Ltd. 9,412,655 130,055 Dow Chemical Co. 25,932,200 1,292,720 E.I. du Pont de Nemours and Co. 4,750,000 243,390 Georgia-Pacific Corp., Georgia-Pacific Group 8,599,298 305,189 International Paper Co. 8,997,235 331,008 MeadWestvaco Corp. 4,085,000 129,985 Newmont Mining Corp. 9,500,000 401,375 Placer Dome Inc. 12,500,000 202,750 Placer Dome Inc. (Canada) 1,500,000 24,266 Rio Tinto PLC 10,235,500 330,609 Rohm and Haas Co. 7,000,000 336,000 Weyerhaeuser Co. 5,475,000 375,037 5,067,492 INDUSTRIALS -- 10.93% 3M Co. 3,500,000 $ 299,915 Boeing Co. 13,000,000 759,980 Burlington Northern Santa Fe Corp. 7,200,000 388,296 Caterpillar Inc. 11,300,000 1,033,272 Cooper Industries, Ltd., Class A 2,500,000 178,800 Cummins Inc. 1,700,000 119,595 Deere & Co. 8,200,000 550,466 FedEx Corp. 2,870,000 269,636 General Dynamics Corp. 3,372,900 361,069 General Electric Co. 31,250,000 1,126,875 Illinois Tool Works Inc. 2,500,000 223,825 Lockheed Martin Corp. 3,060,000 186,844 Northrop Grumman Corp. 2,680,000 144,666 Parker Hannifin Corp. 2,500,000 152,300 Raytheon Co. 10,946,000 423,610 Southwest Airlines Co. 9,000,000 128,160 Tyco International Ltd. 34,166,900 1,154,841 United Parcel Service, Inc., Class B 2,500,000 181,850 United Technologies Corp. 4,875,000 495,592 Waste Management, Inc. 1,100,000 31,735 8,211,327 CONSUMER DISCRETIONARY -- 9.59% Best Buy Co., Inc. 9,400,000 507,694 Carnival Corp., units 7,600,000 393,756 Comcast Corp., Class A(1) 9,357,900 316,110 Delphi Corp. 25,400,000 113,792 Dow Jones & Co., Inc. 1,887,000 70,517 Ford Motor Co. 15,500,000 175,615 Gap, Inc. 3,100,000 67,704 General Motors Corp. 12,950,000 380,600 Honda Motor Co., Ltd. 912,500 45,719 Interpublic Group of Companies, Inc.(1) 8,100,000 99,468 Knight-Ridder, Inc. 550,500 37,021 Kohl's Corp.(1) 1,600,000 82,608 Koninklijke Philips Electronics NV(1) 2,250,000 61,975 Liberty Media Corp., Class A(1) 16,280,000 168,824 Limited Brands, Inc.(2) 20,749,400 504,210 Lowe's Companies, Inc. 20,368,300 1,162,826 May Department Stores Co. 7,000,000 259,140 McDonald's Corp. 1,600,000 49,824 Newell Rubbermaid Inc. 2,000,000 43,880 Target Corp. 20,850,000 1,042,917 Time Warner Inc.(1) 47,954,400 841,600 TJX Companies, Inc. 5,750,000 141,622 Toyota Motor Corp. 6,750,000 251,283 Viacom Inc., Class A 460,100 16,122 Viacom Inc., Class B, nonvoting 6,500,000 226,395 Walt Disney Co. 5,000,000 143,650 7,204,872 CONSUMER STAPLES -- 9.61% Albertson's, Inc. 976,500 $ 20,165 Altria Group, Inc. 55,000,000 3,596,450 Anheuser-Busch Companies, Inc. 3,500,000 165,865 Avon Products, Inc. 9,020,000 387,319 Coca-Cola Co. 5,320,000 221,684 General Mills, Inc. 4,535,000 222,895 H.J. Heinz Co. 7,950,000 292,878 Kimberly-Clark Corp. 500,000 32,865 Kraft Foods Inc., Class A 2,100,000 69,405 PepsiCo, Inc. 11,200,000 593,936 Procter & Gamble Co. 3,500,000 185,500 Reynolds American Inc. 4,461,666 359,566 Sara Lee Corp. 8,816,100 195,365 Unilever NV (New York registered) 5,650,000 386,573 UST Inc. 2,000,000 103,400 Walgreen Co. 8,595,000 381,790 7,215,656 HEALTH CARE -- 5.77% Abbott Laboratories 4,600,000 214,452 Aetna Inc. 4,900,000 367,255 Applera Corp. - Applied Biosystems Group 5,170,500 102,066 AstraZeneca PLC (ADR) 4,534,500 179,249 AstraZeneca PLC (Sweden) 5,909,500 233,741 AstraZeneca PLC (United Kingdom) 5,393,900 212,409 Becton, Dickinson and Co. 1,500,000 87,630 Bristol-Myers Squibb Co. 21,680,300 551,980 Eli Lilly and Co. 11,510,000 599,671 Glaxo Wellcome PLC (ADR) 924,000 42,430 GlaxoSmithKline PLC 4,250,000 97,321 Guidant Corp. 1,500,000 110,850 HCA Inc. 4,000,000 214,280 Johnson & Johnson 3,500,000 235,060 Merck & Co., Inc. 8,000,000 258,960 Novartis AG (ADR) 256,556 12,002 Pfizer Inc 7,522,480 197,616 Schering-Plough Corp. 9,361,300 169,908 WellPoint, Inc.(1) 2,900,000 363,515 Wyeth 2,000,000 84,360 4,334,755 FINANCIALS -- 11.26% Allstate Corp. 8,050,000 435,183 American International Group, Inc. 9,813,900 543,788 Aon Corp. 2,183,800 49,878 Bank of America Corp. 12,105,200 533,839 Capital One Financial Corp. 3,000,000 224,310 Chubb Corp. 5,100,000 404,277 Citigroup Inc. 8,975,000 403,336 Fannie Mae 22,360,000 1,217,502 Freddie Mac 3,150,000 199,080 Hartford Financial Services Group, Inc. 2,700,000 185,112 HSBC Holdings PLC (ADR) 1,079,588 85,719 HSBC Holdings PLC (United Kingdom) 30,697,111 485,042 J.P. Morgan Chase & Co. 18,836,200 651,733 Lincoln National Corp. 800,000 36,112 Lloyds TSB Group PLC 76,500,000 690,312 Marsh & McLennan Companies, Inc. 4,900,000 149,058 MBNA Corp. 4,800,000 117,840 SAFECO Corp. 2,450,000 119,340 St. Paul Travelers Companies, Inc. 3,300,000 121,209 U.S. Bancorp 11,250,000 324,225 Washington Mutual, Inc. 20,505,600 809,971 Wells Fargo & Co. 7,330,000 438,334 XL Capital Ltd., Class A 3,250,000 235,203 8,460,403 INFORMATION TECHNOLOGY -- 8.91% Agilent Technologies, Inc.(1) 4,000,000 88,800 Altera Corp.(1) 3,500,000 69,230 Analog Devices, Inc. 4,250,000 153,595 Applied Materials, Inc.(1) 15,550,000 252,688 Automatic Data Processing, Inc. 5,875,000 264,081 Cisco Systems, Inc.(1) 25,728,800 460,288 Electronic Data Systems Corp. 4,725,800 97,682 EMC Corp.(1) 3,500,000 43,120 First Data Corp. 2,100,000 82,551 Hewlett-Packard Co. 33,700,000 739,378 Hitachi, Ltd. 17,000,000 105,635 Intel Corp. 640,000 14,867 International Business Machines Corp. 6,445,000 588,944 KLA-Tencor Corp.(1) 2,275,000 104,673 Linear Technology Corp. 5,560,000 213,004 Maxim Integrated Products, Inc. 6,100,000 249,307 Micron Technology, Inc.(1) 10,000,000 103,400 Microsoft Corp. 41,280,000 997,738 Motorola, Inc. 12,436,480 186,174 Sabre Holdings Corp., Class A 6,009,680 131,492 Samsung Electronics Co., Ltd. 200,000 98,916 Sanmina-SCI Corp.(1) 7,000,000 36,540 Solectron Corp.(1) 13,000,000 45,110 Sun Microsystems, Inc.(1) 70,510,000 284,860 Taiwan Semiconductor Manufacturing Co. Ltd. 157,883,129 258,430 Texas Instruments Inc. 32,320,200 823,842 Xilinx, Inc. 6,900,000 201,687 6,696,032 TELECOMMUNICATION SERVICES -- 7.25% ALLTEL Corp. 3,998,900 219,340 AT&T Corp. 17,397,500 326,203 BellSouth Corp. 30,800,000 809,732 Deutsche Telekom AG(1) 10,523,000 210,055 SBC Communications Inc. 61,450,000 1,455,751 Sprint Corp. - FON Group 17,885,000 406,884 Telefonica, SA 25,609,261 446,137 Verizon Communications Inc. 20,800,000 738,400 Vodafone Group PLC 93,500,000 247,996 Vodafone Group PLC (ADR) 22,000,000 584,320 5,444,818 UTILITIES -- 2.34% American Electric Power Co., Inc. 5,250,000 $ 178,815 Dominion Resources, Inc. 7,131,912 530,828 Duke Energy Corp. 7,000,000 196,070 Exelon Corp. 5,275,500 242,093 FirstEnergy Corp. 3,238,500 135,855 FPL Group, Inc. 4,000,000 160,600 Public Service Enterprise Group Inc. 5,000,000 271,950 Southern Co. 1,200,000 38,196 1,754,407 MISCELLANEOUS -- 0.66% Other common stocks in initial period of acquisition 499,339 Total common stocks (cost: $44,929,317,000) 62,744,259 Shares or principal Convertible securities -- 0.21% amount CONSUMER DISCRETIONARY -- 0.01% Interpublic Group of Companies, Inc., Series A, 5.375% convertible preferred 2006 115,300 5,243 FINANCIALS -- 0.15% Capital One Financial Corp. 6.25% Upper DECS 2005 1,450,000 units 73,312 Chubb Corp. 7.00% convertible preferred 2005 1,400,000 units 41,510 114,822 INFORMATION TECHNOLOGY -- 0.02% Agilent Technologies, Inc. 3.00% convertible debentures 2021(3) $6,655,000 6,572 Agilent Technologies, Inc. 3.00% convertible debentures 2021(3,4) 4,445,000 4,389 10,961 TELECOMMUNICATION SERVICES -- 0.03% ALLTEL Corp. 7.75% convertible preferred 2005 500,000 units 25,245 Total convertible securities (cost: $148,191,000) 156,271 Principal amount Market value Bonds & notes -- 1.55% (000) (000) CONSUMER DISCRETIONARY -- 0.09% AOL Time Warner Inc. 5.625% 2005 $ 21,045 $ 21,077 General Motors Acceptance Corp. 6.875% 2011 50,000 45,299 66,376 TELECOMMUNICATION SERVICES -- 0.80% AT&T Corp. 9.05% 2011(3) 247,575 282,545 AT&T Wireless Services, Inc. 7.50% 2007 50,000 53,191 AT&T Wireless Services, Inc. 8.125% 2012 30,000 35,095 SBC Communications Inc. 4.125% 2009 120,000 116,832 SBC Communications Inc. 5.10% 2014 120,000 117,178 604,841 MORTGAGE-BACKED OBLIGATIONS -- 0.66% Fannie Mae 6.00% 2017(5) 340,255 351,766 Fannie Mae 6.50% 2017(5) 136,814 143,248 495,014 Total bonds & notes (cost: $1,095,091,000) 1,166,231 Short-term securities -- 14.44% 3M Co. 2.61%-2.73% due 4/20-5/19/2005 55,000 54,809 Abbott Laboratories Inc. 2.53%-2.62% due 4/5-4/19/2005(4) 54,000 53,955 AIG Funding, Inc. 2.57% due 4/18/2005 5,700 5,693 American General Finance 2.66% due 4/25/2005 75,000 74,866 American Express Credit Corp. 2.52%-2.64% due 4/4-4/26/2005 100,000 99,891 Anheuser-Busch Cos. Inc. 2.54%-2.85% due 4/18-6/9/2005(4) 123,040 122,606 Bank of America Corp. 2.51%-2.88% due 4/6-5/27/2005 300,000 299,332 Bank of New York Co., Inc. 2.65% due 4/27/2005 25,000 24,953 BellSouth Corp. 2.59%-2.84% due 4/1-5/24/2005(4) 140,000 139,888 CAFCO LLC 2.52%-2.87% due 4/8-5/25/2005(4) 245,000 244,499 Ciesco LLC 2.70% due 5/2/2005(4) 20,000 19,952 Citicorp 2.74% due 5/4/2005 35,000 34,909 Caterpillar Financial Services Corp. 2.62%-2.70% due 4/4-4/15/2005 70,000 69,963 ChevronTexaco Funding Corp. 2.52%-2.74% due 4/6-5/4/2005 150,000 149,824 Clipper Receivables Co. LLC 2.63%-2.89% due 4/11-6/10/2005(4) 296,657 295,959 Coca-Cola Co. 2.52%-2.82% due 4/4-5/20/2005 249,100 248,554 DuPont (E.I.) de Nemours & Co. 2.60%-2.81% due 4/13-5/20/2005 139,500 139,130 Edison Asset Securitization LLC 2.67%-2.88% due 4/22-5/23/2005(4) 100,000 99,642 General Electric Capital Corp. 2.60% due 4/13/2005 100,000 99,916 Exxon Asset Management Co. 2.48%-2.75% due 4/4-5/24/2005(4) 200,000 199,656 Fannie Mae 2.80%-2.83% due 5/25-5/27/2005 72,890 72,549 FCAR Owner Trust I 2.84% due 5/10-5/11/2005 100,000 99,680 Federal Farm Credit Banks 2.48%-2.91% due 4/1-6/23/2005 202,800 201,804 Federal Home Loan Bank 2.46%-2.86% due 4/1-6/10/2005 686,189 684,768 First Data Corp. 2.63%-2.73% due 4/6-5/3/2005 50,584 50,478 Freddie Mac 2.49%-2.87% due 4/5-6/7/2005 651,531 649,589 Gannett Co. 2.61%-2.79% due 4/26-5/23/2005(4) 155,000 154,515 Harley-Davidson Funding Corp. 2.83%-2.85% due 5/23-5/25/2005(4) 30,000 29,873 Harvard University 2.77% due 5/23/2005 40,000 39,818 Hershey Foods Corp. 2.67%-2.70% due 4/25/2005(4) 42,000 41,922 Hewlett-Packard Co. 2.64%-2.77% due 4/25-4/27/2005(4) 100,300 100,103 Household Finance Corp. 2.59%-2.86% due 4/5-5/20/2005 150,000 149,727 IBM Capital Inc. 2.47%-2.75% due 4/6-4/22/2005(4) 75,000 74,940 International Business Machines Corp. 2.76% due 5/9/2005 50,000 49,850 International Bank for Reconstruction and Development 2.39%-2.81% due 4/1-5/24/2005 325,000 324,451 International Lease Finance Corp. 2.88% due 5/25/2005 20,000 19,912 Kimberly-Clark Worldwide Inc. 2.68%-2.78% due 4/25-5/10/2005(4) 60,400 60,257 NetJets Inc. 2.69%-2.73% due 4/27-5/9/2005(4) 70,000 69,840 New Center Asset Trust 2.61%-2.74% due 4/15-4/29/2005 100,000 99,849 Park Avenue Receivables Co., LLC 2.59%-2.82% due 4/5-5/11/2005(4) 280,380 279,856 Preferred Receivables Funding Corp. 2.83% due 5/18/2005(4) 20,000 19,926 PepsiCo Inc. 2.59%-2.75% due 4/6-5/9/2005(4) 175,300 174,869 Pfizer Inc 2.56%-2.80% due 4/11-5/13/2005(4) 126,600 126,396 Private Export Funding Corp. 2.57%-2.68% due 4/14-5/13/2005(4) 118,000 117,726 Procter & Gamble Co. 2.77%-2.90% due 5/10-6/13/2005(4) 200,000 199,114 SBC Communications Inc. 2.65% due 4/4/2005(4) 29,073 29,064 Tenessee Valley Authority 2.505%-2.84% due 4/7-6/16/2005 250,000 248,999 Three Pillars Funding, LLC 2.67%-2.80% due 4/1-4/29/2005(4) 97,000 96,935 Triple-A One Funding Corp. 2.58%-2.79% due 4/8-5/2/2005(4) 97,677 97,434 United Parcel Service Inc. 2.49% due 4/13/2005 50,000 49,958 U.S. Treasury Bills 2.235%-2.765% due 4/7-6/23/2005 3,163,300 3,154,441 USAA Capital Corp. 2.67%-2.75% due 4/5-5/16/2005 50,000 49,902 Variable Funding Capital Corp. 2.57%-2.71% due 4/4-4/26/2005(4) 300,000 299,587 Wal-Mart Stores Inc. 2.60%-2.84% due 4/5-5/24/2005(4) 148,000 147,606 Wells Fargo & Co. 2.57%-2.76% due 4/5-5/6/2005 300,000 299,997 Total short-term securities (cost: $10,843,289,000) 10,843,732 Total investment securities (cost: $57,015,888,000) 74,910,493 Other assets less liabilities 202,958 Net assets $75,113,451
"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) The fund owns 5% or more of the outstanding voting shares of this company. See table on the following page for additional information. (3) Coupon rate may change periodically. (4) 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 $3,300,509,000, which represented 4.39% of the net assets of the fund. (5) 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 INVESTMENTS IN AFFILIATES A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company. Further details on these holdings and related transactions during the three months ended March 31, 2005 appear below. Dividend/interest Market value Company Beginning shares Purchases Sales Ending shares income (000) (000) Limited Brands, Inc. 20,749,400 -- -- 20,749,400 $3,112 $504,210
Federal income tax information (dollars in thousands) Gross unrealized appreciation on investment securities $19,127,184 Gross unrealized depreciation on investment securities (1,229,968) Net unrealized appreciation on investment securities 17,897,216 Cost of investment securities for federal income tax purposes 57,013,277
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, Vice Chairman and CEO Date: May 27, 2005 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, Vice Chairman and CEO Date: May 27, 2005 By /s/ Thomas M. Rowland ------------------------------------ Thomas M. Rowland, Treasurer and PFO Date: May 27, 2005