0001145549-19-047563.txt : 20191127 0001145549-19-047563.hdr.sgml : 20191127 20191126182209 ACCESSION NUMBER: 0001145549-19-047563 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191127 PERIOD START: 20191231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESTMENT CO OF AMERICA CENTRAL INDEX KEY: 0000051931 IRS NUMBER: 951426645 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-00116 FILM NUMBER: 191252535 BUSINESS ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 213-486-9200 MAIL ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 0000051931 S000009597 INVESTMENT CO OF AMERICA C000026214 Class A AIVSX C000026215 Class R-1 RICAX C000026216 Class R-2 RICBX C000026217 Class R-3 RICCX C000026218 Class R-4 RICEX C000026219 Class R-5 RICFX C000026221 Class C 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QVXH Y+4CXA^'UBNH_VPVLZ% Z)/ M!>H/M$,98+N60??(R."*]"KBQX"N;V:W&N^)M1U6RMY%DCM)$2-693E?,*C+ 5X/K[5VE !1110 4444 %%%% '__9 end NPORT-EX 3 edgar.htm
The Investment Company of America®
Investment portfolio
September 30, 2019
unaudited
Common stocks 92.78%
Energy 9.14%
Shares Value
(000)
Baker Hughes, a GE Co., Class A 27,032,808 $627,161
BP PLC 29,268,620 185,622
Canadian Natural Resources, Ltd. (CAD denominated) 22,781,530 606,143
Chesapeake Energy Corp.1 20,000,000 28,200
Chevron Corp. 4,670,000 553,862
Concho Resources Inc. 10,049,582 682,367
ConocoPhillips 1,095,000 62,393
Enbridge Inc. 6,353,772 222,890
Enbridge Inc. (CAD denominated) 2,500,000 87,746
EOG Resources, Inc. 19,501,900 1,447,431
Exxon Mobil Corp. 29,273,635 2,067,011
Halliburton Co. 7,700,000 145,145
Noble Energy, Inc. 22,139,006 497,242
ONEOK, Inc. 1,511,000 111,346
Royal Dutch Shell PLC, Class B 8,152,400 240,170
Royal Dutch Shell PLC, Class B (ADR) 5,975,000 357,903
Schlumberger Ltd. 8,572,000 292,905
Southwestern Energy Co.1 9,247,030 17,847
Suncor Energy Inc. 2,258,682 71,246
TC Energy Corp. (CAD denominated) 3,696,229 191,389
TOTAL SA 2,051,117 107,052
Williams Companies, Inc. 6,100,400 146,776
    8,749,847
Materials 4.47%    
Alcoa Corp.1 7,319,610 146,905
BHP Group PLC 18,669,000 397,663
Celanese Corp. 1,435,000 175,486
Dow Inc. 7,250,000 345,463
DuPont de Nemours Inc. 2,700,000 192,537
Freeport-McMoRan Inc. 41,010,250 392,468
International Flavors & Fragrances Inc. 3,860,820 473,684
Linde PLC 7,175,900 1,390,115
LyondellBasell Industries NV 1,398,000 125,079
Rio Tinto PLC 5,508,400 285,070
Sherwin-Williams Co. 305,000 167,710
Vale SA, ordinary nominative (ADR) 15,823,215 181,967
    4,274,147
Industrials 8.73%    
3M Co. 561,700 92,343
Airbus SE, non-registered shares 4,373,225 568,178
AMETEK, Inc. 350,000 32,137
Boeing Co. 1,354,000 515,156
Caterpillar Inc. 612,000 77,302
CSX Corp. 18,559,500 1,285,616
Deere & Co. 311,541 52,551
The Investment Company of America — Page 1 of 8

unaudited
Common stocks (continued)
Industrials (continued)
Shares Value
(000)
Equifax Inc. 288,300 $40,555
Fortive Corp. 475,000 32,566
General Dynamics Corp. 6,930,000 1,266,319
Illinois Tool Works Inc. 3,400,000 532,066
Komatsu Ltd. 4,424,000 101,266
L3Harris Technologies, Inc. 3,139,187 654,960
Lockheed Martin Corp. 1,559,700 608,377
Masco Corp. 5,122,000 213,485
Nielsen Holdings PLC 542,532 11,529
Norfolk Southern Corp. 360,000 64,678
Northrop Grumman Corp. 2,012,700 754,340
Rolls-Royce Holdings PLC1 38,286,000 373,019
Safran SA 1,653,429 260,321
Stanley Black & Decker, Inc. 1,387,500 200,369
Union Pacific Corp. 552,568 89,505
United Technologies Corp. 3,609,852 492,817
Waste Connections, Inc. 360,000 33,120
    8,352,575
Consumer discretionary 9.08%    
Amazon.com, Inc.1 1,223,900 2,124,580
General Motors Co. 11,457,400 429,423
Hasbro, Inc.2 7,736,390 918,232
Home Depot, Inc. 6,972,000 1,617,643
Las Vegas Sands Corp. 8,535,700 493,022
Lowe’s Companies, Inc. 4,870,800 535,593
Marriott International, Inc., Class A 4,134,600 514,220
McDonald’s Corp. 5,129,000 1,101,248
NIKE, Inc., Class B 8,663,900 813,714
Ross Stores, Inc. 501,800 55,123
Royal Caribbean Cruises Ltd. 503,000 54,490
Sony Corp. 562,000 32,990
    8,690,278
Consumer staples 9.11%    
Altria Group, Inc. 13,333,400 545,336
British American Tobacco PLC 41,957,800 1,551,546
British American Tobacco PLC (ADR) 3,597,865 132,761
Coca-Cola Co. 18,513,600 1,007,880
Constellation Brands, Inc., Class A 1,795,000 372,068
Costco Wholesale Corp. 1,128,500 325,132
Diageo PLC 918,800 37,653
Hormel Foods Corp. 3,823,263 167,191
Imperial Brands PLC 8,319,000 187,000
Keurig Dr Pepper Inc. 21,481,652 586,879
Lamb Weston Holdings, Inc.2 8,539,550 620,996
Mondelez International, Inc. 1,000,000 55,320
Nestlé SA 8,260,098 896,151
PepsiCo, Inc. 3,600,000 493,560
Pernod Ricard SA 1,963,379 349,674
Philip Morris International Inc. 15,443,700 1,172,640
Procter & Gamble Co. 540,000 67,165
Reckitt Benckiser Group PLC 2,000,000 156,005
    8,724,957
The Investment Company of America — Page 2 of 8

unaudited
Common stocks (continued)
Health care 16.29%
Shares Value
(000)
Abbott Laboratories 35,988,300 $3,011,141
AbbVie Inc. 27,223,228 2,061,343
Alcon Inc.1 2,141,400 124,873
Amgen Inc. 7,628,900 1,476,269
Anthem, Inc. 308,200 73,999
AstraZeneca PLC 2,996,100 267,485
Cigna Corp. 4,279,213 649,542
Daiichi Sankyo Co., Ltd. 11,295,000 710,762
Danaher Corp. 754,000 108,900
Edwards Lifesciences Corp.1 594,640 130,767
Eli Lilly and Co. 5,417,700 605,861
Gilead Sciences, Inc. 18,032,045 1,142,871
GlaxoSmithKline PLC 12,538,400 268,958
Humana Inc. 1,297,000 331,604
Illumina, Inc.1 462,000 140,550
Incyte Corp.1 114,418 8,493
Johnson & Johnson 600,000 77,628
Medtronic PLC 843,000 91,567
Merck & Co., Inc. 7,786,700 655,484
Novartis AG 3,698,000 320,650
Stryker Corp. 3,661,517 791,986
Teva Pharmaceutical Industries Ltd. (ADR)1 22,884,300 157,444
Thermo Fisher Scientific Inc. 2,665,000 776,235
UnitedHealth Group Inc. 7,421,297 1,612,796
    15,597,208
Financials 5.77%    
AIA Group Ltd. 5,619,200 53,090
American International Group, Inc. 6,500,000 362,050
Aon PLC, Class A 1,129,400 218,618
Bank of Montreal 1,792,478 132,022
Bank of New York Mellon Corp. 3,750,000 169,537
Barclays PLC 104,846,411 193,887
Berkshire Hathaway Inc., Class B1 1,800,000 374,436
BlackRock, Inc. 213,800 95,278
BNP Paribas SA 5,600,000 272,653
Chubb Ltd. 2,532,300 408,815
CME Group Inc., Class A 1,221,400 258,131
First Republic Bank 1,037,000 100,278
JPMorgan Chase & Co. 7,957,000 936,459
Marsh & McLennan Companies, Inc. 3,000,000 300,150
Nasdaq, Inc. 1,510,000 150,018
PNC Financial Services Group, Inc. 1,470,000 206,035
S&P Global Inc. 268,400 65,753
Société Générale 4,301,060 117,855
SunTrust Banks, Inc. 1,905,900 131,126
Wells Fargo & Co. 9,069,000 457,440
Willis Towers Watson PLC 2,717,502 524,396
    5,528,027
Information technology 16.51%    
Accenture PLC, Class A 3,346,000 643,603
Adobe Inc.1 928,000 256,360
Amphenol Corp., Class A 3,672,408 354,387
Apple Inc. 3,103,200 695,024
The Investment Company of America — Page 3 of 8

unaudited
Common stocks (continued)
Information technology (continued)
Shares Value
(000)
ASML Holding NV 2,129,323 $527,414
Broadcom Inc. 9,325,300 2,574,436
Fidelity National Information Services, Inc. 1,013,420 134,542
Global Payments Inc. 374,500 59,545
Intel Corp. 20,072,000 1,034,310
Intuit Inc. 274,500 73,001
Mastercard Inc., Class A 3,075,000 835,078
Microsoft Corp. 33,530,073 4,661,686
NetApp, Inc. 3,187,849 167,394
QUALCOMM Inc. 8,310,900 633,955
Samsung Electronics Co., Ltd. 12,900,000 528,985
ServiceNow, Inc.1 1,021,000 259,181
Skyworks Solutions, Inc. 3,550,000 281,337
Taiwan Semiconductor Manufacturing Co., Ltd.3 8,350,000 73,126
TE Connectivity Ltd. 1,770,000 164,929
Texas Instruments Inc. 9,608,210 1,241,765
Visa Inc., Class A 708,800 121,921
Western Union Co. 20,932,000 484,994
    15,806,973
Communication services 9.46%    
Activision Blizzard, Inc. 2,494,800 132,025
Alphabet Inc., Class A1 1,205,700 1,472,329
Alphabet Inc., Class C1 847,730 1,033,383
CBS Corp., Class B 5,605,000 226,274
Charter Communications, Inc., Class A1 209,000 86,133
Comcast Corp., Class A 6,205,000 279,721
Facebook, Inc., Class A1 25,169,300 4,482,149
Fox Corp., Class A 3,000,000 94,605
Netflix, Inc.1 2,940,800 787,017
Verizon Communications Inc. 5,724,990 345,560
Vodafone Group PLC 60,000,000 119,512
    9,058,708
Utilities 2.80%    
American Electric Power Co., Inc. 4,496,088 421,238
Dominion Energy, Inc. 8,223,824 666,459
E.ON SE 7,529,178 73,193
Edison International 6,244,000 470,922
Exelon Corp. 5,803,000 280,343
NextEra Energy, Inc. 1,114,300 259,621
Public Service Enterprise Group Inc. 2,128,311 132,126
Sempra Energy 2,566,300 378,811
    2,682,713
Real estate 1.42%    
Alexandria Real Estate Equities, Inc. REIT 1,242,000 191,318
American Tower Corp. REIT 2,796,598 618,412
Crown Castle International Corp. REIT 819,500 113,919
Digital Realty Trust, Inc. REIT 423,000 54,909
Equinix, Inc. REIT 217,500 125,454
The Investment Company of America — Page 4 of 8

unaudited
Common stocks (continued)
Real estate (continued)
Shares Value
(000)
SBA Communications Corp. REIT 638,737 $154,031
Simon Property Group, Inc. REIT 635,000 98,838
    1,356,881
Total common stocks (cost: $64,305,244,000)   88,822,314
Convertible stocks 0.14%
Industrials 0.06%
   
Stanley Black & Decker, Inc. 5.375% 2020, convertible preferred 600,000 60,288
Utilities 0.08%    
NextEra Energy, Inc., units, 4.872% convertible preferred 2022 463,100 23,220
Sempra Energy, Series A, 6.00% convertible preferred 2021 470,500 55,613
    78,833
Total convertible stocks (cost: $129,354,000)   139,121
Bonds, notes & other debt instruments 0.08%
U.S. Treasury bonds & notes 0.08%
U.S. Treasury 0.08%
Principal amount
(000)
 
U.S. Treasury 2.75% 2023 $70,360 73,228
Total bonds, notes & other debt instruments (cost: $70,139,000)   73,228
Short-term securities 7.18%
Money market investments 7.18%
Shares  
Capital Group Central Cash Fund 2.07%2,4 68,750,063 6,874,319
Total short-term securities (cost: $6,874,369,000)   6,874,319
Total investment securities 100.18% (cost: $71,379,106,000)   95,908,982
Other assets less liabilities (0.18%)   (170,307)
Net assets 100.00%   $95,738,675
The Investment Company of America — Page 5 of 8

unaudited
Investments in affiliates

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. Further details on these holdings and related transactions during the nine months ended September 30, 2019, appear below.
  Beginning
shares
Additions Reductions Ending
shares
Net
realized
(loss) gain
(000)
Net
unrealized
appreciation
(depreciation)
(000)
Dividend
income
(000)
Value of
affiliates at
9/30/2019
(000)
Common stocks 1.61%
Energy 0.00%                
Noble Energy, Inc.5 29,272,023 1,240,000 8,373,017 22,139,006 $(104,554) $201,120 $9,429 $
Consumer discretionary 0.96%                
Hasbro, Inc. 7,618,390 485,800 367,800 7,736,390 6,041 292,885 15,821 918,232
Consumer staples 0.65%                
Lamb Weston Holdings, Inc. 10,333,473 1,793,923 8,539,550 34,234 (45,154) 5,738 620,996
Information technology 0.00%                
Western Union Co.5 24,634,600 3,702,600 20,932,000 28,567 120,600 14,675
Short-term securities 7.18%
Money market investments 7.18%                
Capital Group Central Cash Fund 2.07%4 114,118,459 45,368,396 68,750,063 121 (51) 91,156 6,874,319
Total 8.79%         $(35,591) $569,400 $136,819 $8,413,547
1 Security did not produce income during the last 12 months.
2 Represents an affiliated company as defined under the Investment Company Act of 1940.
3 Valued under fair value procedures adopted by authority of the board of trustees. The total value of the security was $73,126,000, which represented .08% of the net assets of the fund.
4 Rate represents the seven-day yield at 9/30/2019.
5 Unaffiliated issuer at 9/30/2019.
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.
The Investment Company of America — Page 6 of 8

unaudited
Fixed-income securities, including short-term securities, 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 deemed to be not 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 for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
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 valuation guidelines adopted by authority of the fund’s board of trustees as further described. 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. 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
The Investment Company of America — Page 7 of 8

unaudited
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 September 30, 2019 (dollars in thousands):
  Investment securities
  Level 1 Level 2 Level 3 Total
Assets:        
Common stocks:        
Energy $8,749,847 $$$8,749,847
Materials 4,274,147 4,274,147
Industrials 8,352,575 8,352,575
Consumer discretionary 8,690,278 8,690,278
Consumer staples 8,724,957 8,724,957
Health care 15,597,208 15,597,208
Financials 5,528,027 5,528,027
Information technology 15,733,847 73,126 15,806,973
Communication services 9,058,708 9,058,708
Utilities 2,682,713 2,682,713
Real estate 1,356,881 1,356,881
Convertible stocks 139,121 139,121
Bonds, notes & other debt instruments 73,228 73,228
Short-term securities 6,874,319 6,874,319
Total $95,762,628 $146,354 $— $95,908,982
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
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 Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc., member FINRA.
© 2019 Capital Group. All rights reserved.
MFGEFPX-004-1119O-S73114 The Investment Company of America — Page 8 of 8