N-CSRS 1 eupac_ncsrs.htm N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

 

Investment Company Act File Number: 811-03734

 

EuroPacific Growth Fund

(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: March 31

 

Date of reporting period: September 30, 2018

 

Michael W. Stockton

EuroPacific Growth Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

 

ITEM 1 – Reports to Stockholders

 

 

 

EuroPacific Growth Fund®

 

Semi-annual report
for the six months ended
September 30, 2018

 

Tap into the growth
potential of
international equities.

 

 

EuroPacific Growth Fund seeks to provide you with long-term growth of capital.

 

This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For more than 85 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.

 

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit americanfunds.com.

 

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2018:

 

Class A shares   1 year   5 years   10 years
             
Reflecting 5.75% maximum sales charge   –4.66%   4.59%   5.87%

 

For other share class results, visit americanfunds.com and americanfundsretirement.com.

 

The total annual fund operating expense ratio was 0.82% for Class A shares as of the prospectus dated June 1, 2018.

 

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

 

Investing outside the United States may be subject to risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

 

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

 

Fellow investors:

 

During a six-month span when heightened volatility returned to international equity markets, EuroPacific Growth Fund trailed its benchmarks for the period ended September 30, 2018.

 

The fund lost 3.79% for shareholders who reinvested dividends and capital gains. This result lagged the 1.93% decline recorded by the fund’s primary benchmark, the MSCI All Country World Index ex USA, which reflects the returns of more than 40 developed and developing country stock markets.

 

EuroPacific Growth trailed its peers, as well, as reflected by the Lipper International Funds Average, which fell 1.82% during the six-month period. The fund also lagged the return of the MSCI EAFE (Europe, Australasia, Far East) Index, which was essentially flat. Over long time frames, the fund’s results compare favorably to the indexes and the peer group, as shown in the table below.

 

Results at a glance

For periods ended September 30, 2018, with all distributions reinvested

 

   Cumulative total returns  Average annual total returns
   6 months  1 year  5 years  10 years  Lifetime
(since 4/16/84)
                          
EuroPacific Growth Fund (Class A shares)   –3.79%   1.15%   5.84%   6.50%   10.67%
MSCI ACWI (All Country World Index) ex USA1,2     –1.93    1.76    4.12    5.18     
MSCI EAFE (Europe, Australasia, Far East) Index1,3     0.10    2.74    4.42    5.38    8.30 
Lipper International Funds Average4     –1.82    1.50    4.28    5.29    8.76 

 

1 The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Source: MSCI.
2 The index did not exist prior to December 31, 1987. Results reflect dividends net of withholding taxes.
3 This index was the fund’s primary benchmark until the fiscal year ended March 31, 2007. Results reflect dividends net of withholding taxes.
4 Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website.

 

EuroPacific Growth Fund 1
 

Market volatility returns

International equity markets came under pressure during the April-to-September period, jostled by rising U.S. interest rates, a strong U.S. dollar and political turmoil in several countries. Slowing economic growth in Europe and parts of Asia also contributed to negative investor sentiment. Emerging markets equities were hit particularly hard as a number of foreign currencies fell to all-time lows against the dollar, adding to concerns over high debt levels. Escalating trade tensions between the U.S. and China raised questions about whether a previously strong global economy would buckle under the weight of tariffs and other trade restrictions.

 

In contrast, U.S. equities continued to move higher during the six-month period amid accelerating U.S. economic growth and double-digit corporate earnings growth. The gap between U.S. and non-U.S. equity returns grew wider as the period progressed, reflecting a significant divergence between the U.S. and its trading partners in Europe, Latin America and Asia. Political and financial turmoil in Argentina, Brazil, Italy and Turkey raised fears of contagion throughout non-U.S. markets as investors rapidly moved capital out of perceived higher risk countries. The rise of populist politics in many of these countries served to heighten the sense of market uncertainty.

 

Most sectors decline

Most sectors within the ACWI ex USA index declined for the six-month period, led by a 6.54% slide in the real estate sector. Several European and emerging markets banks were hurt by investor worries over loans made in troubled countries, as well as extreme currency weakness in those regions. The information technology sector lost 5.29%, weighed down by declines among companies that make components for smartphones and other internet-connected devices. Signs of slowing growth in worldwide smartphone sales triggered a sharp decline in the shares of many companies in the mobile-device global supply chain.

 

Chinese internet companies also lost ground amid China’s slowing economy and government intervention in the country’s lucrative digital-gaming market. Companies such as Alibaba and Tencent, which had rallied in 2017, gave back some of those gains in the April-to-September period amid a broad selloff in Chinese stocks. On the other hand, energy stocks climbed significantly higher, boosted by rising oil prices and reports of supply shortages in key oil-producing regions. Health care stocks also posted solid gains, supported by surging corporate profits and a wave of merger-and-acquisition activity in the sector.

 

2 EuroPacific Growth Fund
 

Where the fund’s assets are invested

(percent invested by country of domicile)

 

EuroPacific Growth Fund invests primarily in the stocks of companies based in Europe and the Pacific Basin.1

 

   EuroPacific
Growth Fund
   MSCI ACWI
ex USA Index2
   (9/30/2018)  (3/31/2018)  (9/30/2018)
Europe            
Eurozone3   20.9%   21.0%   22.2%
United Kingdom   10.6    10.7    12.0 
Switzerland   3.1    3.0    5.7 
Denmark   1.7    1.7    1.2 
Russian Federation   .5    .7    .9 
Norway   .2    .6    .5 
Other Europe   .2    .4    2.4 
    37.2    38.1    44.9 
                
Pacific Basin               
Japan   13.9%   13.6%   16.9%
China   9.6    9.5    7.6 
South Korea   4.9    5.8    3.7 
Hong Kong   4.8    4.6    2.4 
Canada   3.5    3.3    6.6 
Taiwan   2.0    2.4    3.0 
United States   1.7    1.2     
Australia   1.0    1.0    4.6 
Thailand   .9    1.3    .6 
Other Pacific Basin   1.4    1.5    3.2 
    43.7    44.2    48.6 
                
Other               
India   7.6%   6.9%   2.1%
Brazil   3.1    3.1    1.5 
South Africa   .9    .9    1.5 
Other countries   .7    .9    1.4 
    12.3    11.8    6.5 
                
Short-term securities & other assets less liabilities   6.8    5.9     
                
Total   100.0%   100.0%   100.0%

 

1 A country is considered part of the Pacific Basin if any of its borders touches the Pacific Ocean.
2 Weighted by market capitalization.
3 Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

 

EuroPacific Growth Fund 3
 

Inside the portfolio

Select investments in the information technology sector weighed on returns relative to the fund’s primary benchmark. Shares of Nintendo slipped amid concerns that sales of the new Switch™ game console might not live up to the lofty expectations of Wall Street analysts. Shares of China’s AAC Technologies declined following reports of softening global smartphone demand. AAC makes miniaturized speakers, lenses and other components for Apple and other mobile-phone manufacturers.

 

Investments in the consumer staples sector also hurt relative returns. British American Tobacco shares fell sharply for a number of reasons, including government efforts to reduce nicotine levels in cigarettes and a decline in the shares of some U.K.-based companies due to worries over increasingly tense Brexit negotiations. The U.K. is expected to leave the European Union in March 2019 but, as of September 30, no deal had been reached between British and EU negotiators. Elsewhere in the portfolio, Ryanair and UniCredit were also among the largest detractors for the period.

 

Among the top relative contributors, shares of Reliance Industries rallied on the success of the Indian conglomerate’s petrochemicals business and its Jio telecommunications network. Among Japanese stocks, Sony shares moved sharply higher amid the strong performance of its PlayStation video game unit and its camera-sensor business. Airbus shares advanced as the European aircraft manufacturer benefited from robust global demand for more fuel-efficient airplanes. Elsewhere in the portfolio, Vale and SoftBank were also among the top contributors for the period.

 

Looking ahead

Despite near-term market turmoil, we remain optimistic on the long-term outlook for international equities. The asset class has generally lagged U.S. equities since the 2008–09 financial crisis, a condition that we do not believe is sustainable over the next decade. Valuations in non-U.S. markets have become incredibly attractive in recent months, and it is our strong belief that, over time, investing in great companies at reasonable prices will prove to be a rewarding strategy.

 

International equities are out of favor for myriad reasons. That will continue to be the case — until it’s not. Eventually, market sentiment will shift, and we believe investors who stayed the course will be pleased with their decision. Maintaining international diversification is important, even if it may not seem so at any one

 

4 EuroPacific Growth Fund
 

point in time. Diversification, by definition, means that some areas of a portfolio are down while others are doing well. Achieving that balance is crucial to successful, long-term investing. We believe the companies that we own in this fund are well positioned to help our shareholders meet that goal.

 

Thank you for your commitment to the EuroPacific Growth Fund. We look forward to reporting to you again in six months.

 

Sincerely,

 

 

Carl Kawaja

Vice Chairman of the Board and President

 

November 12, 2018

 

For current information about the fund, visit americanfunds.com.

 

EuroPacific Growth Fund 5
 
Summary investment portfolio September 30, 2018 unaudited

 

Industry sector diversification Percent of net assets

 

 

 

Country diversification by domicile  Percent of
net assets
Eurozone*   20.92%
Japan   13.86 
United Kingdom   10.61 
China   9.58 
India   7.56 
South Korea   4.86 
Hong Kong   4.83 
Canada   3.54 
Switzerland   3.13 
Other countries   14.34 
Short-term securities & other assets less liabilities   6.77 
* Countries using the euro as a common currency; those represented in the fund’s portfolio are Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands and Spain.

 

Common stocks 93.12%  Shares   Value
(000)
 
Information technology 17.95%          
Samsung Electronics Co., Ltd.   84,820,250   $3,551,860 
Samsung Electronics Co., Ltd., nonvoting preferred   2,440,000    83,258 
Nintendo Co., Ltd.1   9,762,026    3,562,169 
Taiwan Semiconductor Manufacturing Co., Ltd.   278,313,649    2,392,733 
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)   8,247,523    364,211 
Alibaba Group Holding Ltd. (ADR)2   16,687,495    2,749,432 
ASML Holding NV   12,926,192    2,414,780 
Tencent Holdings Ltd.   55,969,511    2,310,748 
SK hynix, Inc.   22,393,000    1,475,707 
Amadeus IT Group SA, Class A, non-registered shares   13,035,279    1,211,072 
MercadoLibre, Inc.1   3,424,500    1,165,940 
Keyence Corp.   1,734,200    1,007,063 
Murata Manufacturing Co., Ltd.   5,200,626    799,410 
Other securities        6,092,050 
         29,180,433 

 

6 EuroPacific Growth Fund
 
   Shares   Value
(000)
 
Financials 16.08%          
AIA Group Ltd.   458,204,600   $4,091,348 
HDFC Bank Ltd.   107,036,464    2,962,071 
HDFC Bank Ltd. (ADR)   7,727,242    727,133 
Prudential PLC   80,687,038    1,850,422 
Kotak Mahindra Bank Ltd.   94,161,246    1,482,887 
China Construction Bank Corp., Class H   1,308,293,140    1,143,118 
UniCredit SpA   64,889,564    976,708 
Barclays PLC   433,700,647    971,047 
Housing Development Finance Corp. Ltd.   31,813,425    769,991 
Sberbank of Russia PJSC (ADR)   59,071,716    749,029 
Other securities        10,410,344 
         26,134,098 
           
Consumer discretionary 11.85%          
Sony Corp.   41,187,000    2,525,160 
LVMH Moët Hennessy-Louis Vuitton SE   4,654,000    1,645,914 
Naspers Ltd., Class N   5,959,522    1,286,047 
Galaxy Entertainment Group Ltd.   193,509,000    1,227,298 
adidas AG   4,984,373    1,220,501 
Industria de Diseño Textil, SA   33,358,628    1,011,267 
Other securities        10,352,788 
         19,268,975 
           
Industrials 9.79%          
Airbus SE, non-registered shares   30,095,627    3,780,083 
Ryanair Holdings PLC (ADR)2   16,035,793    1,540,078 
International Consolidated Airlines Group, SA (CDI)1   129,105,675    1,110,960 
Rolls-Royce Holdings PLC2   61,465,533    791,047 
Komatsu Ltd.   25,815,532    785,236 
Yamato Holdings Co., Ltd.1   24,466,093    751,080 
Other securities        7,156,856 
         15,915,340 
           
Health care 7.91%          
Daiichi Sankyo Co., Ltd.   34,141,000    1,479,884 
Novartis AG   14,653,000    1,260,152 
Teva Pharmaceutical Industries Ltd. (ADR)   50,720,159    1,092,512 
Shire PLC   17,399,046    1,048,513 
Chugai Pharmaceutical Co., Ltd.   11,955,158    768,110 
Koninklijke Philips NV   16,497,000    751,501 
Other securities        6,458,440 
         12,859,112 
           
Materials 7.76%          
Vale SA, ordinary nominative (ADR)   108,837,642    1,615,150 
Vale SA, ordinary nominative   41,823,278    619,497 
Glencore PLC   291,941,000    1,262,171 
Teck Resources Ltd., Class B   40,064,000    965,581 
Asahi Kasei Corp.   56,801,142    861,366 
Chr. Hansen Holding A/S1   7,314,000    742,457 
Other securities        6,548,497 
         12,614,719 

 

EuroPacific Growth Fund 7
 
Common stocks (continued)  Shares   Value
(000)
 
Consumer staples 6.21%          
British American Tobacco PLC   43,821,950   $2,047,378 
Nestlé SA   13,549,399    1,129,623 
Kao Corp.   13,251,200    1,069,939 
Associated British Foods PLC   30,999,094    925,257 
Pernod Ricard SA   5,010,610    822,022 
Other securities        4,091,237 
         10,085,456 
           
Energy 5.53%          
Reliance Industries Ltd.   203,091,942    3,524,341 
Royal Dutch Shell PLC, Class B   22,576,544    791,273 
Canadian Natural Resources, Ltd. (CAD denominated)   17,887,225    584,401 
Canadian Natural Resources, Ltd.   5,350,000    174,731 
Other securities        3,915,463 
         8,990,209 
           
Utilities 2.34%          
Ørsted AS1   21,260,285    1,444,186 
Other securities        2,359,077 
         3,803,263 
           
Telecommunication services 2.05%          
SoftBank Group Corp.   18,297,640    1,847,157 
Other securities        1,486,613 
         3,333,770 
           
Real estate 0.73%          
Other securities        1,184,208 
           
Miscellaneous 4.92%          
Other common stocks in initial period of acquisition        7,999,438 
           
Total common stocks (cost: $111,328,455,000)        151,369,021 
           
Rights & warrants 0.08%          
Miscellaneous 0.08%          
Other rights & warrants in initial period of acquisition        121,688 
           
Total rights & warrants (cost: $138,006,000)        121,688 
           
          
Bonds, notes & other debt instruments 0.03%  Principal amount
(000)
      
U.S. Treasury bonds & notes 0.03%          
U.S. Treasury 1.125% 20193  $50,000    49,752 
           
Total bonds, notes & other debt instruments (cost: $49,775,000)        49,752 

 

8 EuroPacific Growth Fund
 
Short-term securities 6.58%  Principal amount
(000)
    Value
(000)
 
Federal Home Loan Bank 1.92%–2.11% due 10/5/2018–12/5/2018  $2,066,300   $2,062,880 
U.S. Treasury Bills 1.55%–2.20% due 10/18/2018–3/28/2019   3,504,700    3,485,393 
Other securities        5,142,782 
           
Total short-term securities (cost: $10,693,340,000)        10,691,055 
Total investment securities 99.81% (cost: $122,209,576,000)        162,231,516 
Other assets less liabilities 0.19%        316,359 
           
Net assets 100.00%       $162,547,875 

 

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

 

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.

 

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. One security in “Other securities” (with a value of $348,188,000, an aggregate cost of $351,103,000, and which represented .21% of the net assets of the fund) was acquired on 12/18/2017 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale. “Other securities” also includes securities (with an aggregate value of $3,795,108,000, which represented 2.33% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

 

Forward currency contracts

 

Contract amount        Unrealized
depreciation
 
Purchases
(000)
  Sales
(000)
  Counterparty  Settlement
date
  at 9/30/2018
(000)
 
USD358,852  GBP276,993  Goldman Sachs  10/12/2018  $(2,408)
USD106,289  INR7,775,000  Morgan Stanley  10/30/2018   (501)
USD68,353  INR5,000,000  JPMorgan Chase  11/6/2018   (266)
USD68,348  INR5,000,000  Citibank  11/6/2018   (271)
             $(3,446)

 

EuroPacific Growth Fund 9
 

Investments in affiliates

 

A company is 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. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on such holdings and related transactions during the six months ended September 30, 2018, appear below.

 

   Beginning
shares
   Additions   Reductions   Ending
shares
 
Common stocks 10.75%                    
Information technology 3.63%                    
Nintendo Co., Ltd.   6,797,026    2,965,000        9,762,026 
MercadoLibre, Inc.   1,602,500    1,822,000        3,424,500 
AAC Technologies Holdings Inc.   42,638,799    24,112,667        66,751,466 
Just Eat PLC2   51,012,545    3,383,455        54,396,000 
Consumer discretionary 1.91%                    
Ryohin Keikaku Co., Ltd.   923,000    1,019,000        1,942,000 
Melco Resorts & Entertainment Ltd. (ADR)   12,814,000    14,454,250        27,268,250 
Paddy Power Betfair PLC   6,722,677        315,455    6,407,222 
ASOS PLC2   6,690,380            6,690,380 
Altice USA, Inc., Class B4       27,021,262    9,299,227    17,722,035 
Altice USA, Inc., Class A       17,853,251    10,413,331    7,439,920 
Altice Europe NV, Class A2,5   69,114,355    3,928,273        73,042,628 
Altice Europe NV, Class B2,5   16,341,536            16,341,536 
William Hill PLC   55,379,159    445,848        55,825,007 
Global Brands Group Holding Ltd.2   487,835,358            487,835,358 
Kroton Educacional SA, ordinary nominative6   90,424,000        13,666,100    76,757,900 
Industrials 2.15%                    
International Consolidated Airlines Group, SA (CDI)   150,105,675        21,000,000    129,105,675 
Yamato Holdings Co., Ltd.7   15,699,000    8,767,093        24,466,093 
MTU Aero Engines AG   1,603,000    1,418,362        3,021,362 
Melrose Industries PLC       254,711,746        254,711,746 
Air France-KLM2   9,233,795    18,623,500        27,857,295 
Ryanair Holdings PLC (ADR)2,6   17,974,744    566,491    2,505,442    16,035,793 
Health care 0.42%                    
Hikma Pharmaceuticals PLC   15,323,773            15,323,773 
GW Pharmaceuticals PLC (ADR)2,7   1,294,000    475,681        1,769,681 
Materials 0.81%                    
Chr. Hansen Holding A/S   7,491,364        177,364    7,314,000 
First Quantum Minerals Ltd.   41,611,001    8,687,632        50,298,633 
Energy 0.53%                    
Oil Search Ltd.   66,700,452    20,160,000        86,860,452 
Tourmaline Oil Corp.   16,547,000            16,547,000 
Utilities 1.30%                    
Ørsted AS   24,649,666    61,619    3,451,000    21,260,285 
ENN Energy Holdings Ltd.   50,122,000    27,505,000        77,627,000 

 

10 EuroPacific Growth Fund
 
   Net
realized
(loss) gain
(000)
   Net
unrealized
(depreciation)
appreciation
(000)
   Dividend
income
(000)
   Value of
affiliates at
9/30/2018
(000)
 
Common stocks 10.75%                    
Information technology 3.63%                    
Nintendo Co., Ltd.  $   $(642,121)  $14,860   $3,562,169 
MercadoLibre, Inc.       (16,132)       1,165,940 
AAC Technologies Holdings Inc.       (394,623)   12,639    693,236 
Just Eat PLC2       (59,685)       475,170 
                   5,896,515 
Consumer discretionary 1.91%                    
Ryohin Keikaku Co., Ltd.       (53,373)   3,516    577,712 
Melco Resorts & Entertainment Ltd. (ADR)       (142,817)   4,590    576,723 
Paddy Power Betfair PLC   (12,144)   (96,583)   18,411    546,774 
ASOS PLC2       (152,136)       502,460 
Altice USA, Inc., Class B4       (70,573)       321,478 
Altice USA, Inc., Class A   (54,162)   (19,644)       134,960 
Altice Europe NV, Class A2,5       281,793        197,005 
Altice Europe NV, Class B2,5       (91,070)       43,866 
William Hill PLC       (75,519)   6,952    183,434 
Global Brands Group Holding Ltd.2       (2,038)       25,550 
Kroton Educacional SA, ordinary nominative6   (35,076)   (86,478)   4,824     
                   3,109,962 
Industrials 2.15%                    
International Consolidated Airlines Group, SA (CDI)   37,288    (36,023)   25,147    1,110,960 
Yamato Holdings Co., Ltd.7       113,817    3,033    751,080 
MTU Aero Engines AG       129,313    4,558    680,894 
Melrose Industries PLC       (144,830)   4,974    663,651 
Air France-KLM2       14,921        290,188 
Ryanair Holdings PLC (ADR)2,6   (57,129)   (430,139)        
                   3,496,773 
Health care 0.42%                    
Hikma Pharmaceuticals PLC       109,575    5,363    369,501 
GW Pharmaceuticals PLC (ADR)2,7       90,278        305,695 
                   675,196 
Materials 0.81%                    
Chr. Hansen Holding A/S   9,755    100,733    6,743    742,457 
First Quantum Minerals Ltd.       (134,534)   354    572,828 
                   1,315,285 
Energy 0.53%                    
Oil Search Ltd.       67,360    1,737    566,967 
Tourmaline Oil Corp.       10,685    2,419    291,316 
                   858,283 
Utilities 1.30%                    
Ørsted AS   78,992    (24,138)       1,444,186 
ENN Energy Holdings Ltd.       (59,031)   6,896    674,298 
                   2,118,484 
Total 10.75%  $(32,476)  $(1,813,012)  $127,016   $17,470,498 

 

EuroPacific Growth Fund 11
 
1 Represents an affiliated company as defined under the Investment Company Act of 1940.
2 Security did not produce income during the last 12 months.
3 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $6,532,000, which represented less than .01% of the net assets of the fund.
4 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $1,166,754,000, which represented .72% of the net assets of the fund.
5 This security changed its name during the reporting period.
6 Unaffiliated issuer at 9/30/2018.
7 This security was an unaffiliated issuer in its initial period of acquisition at 3/31/2018; it was not publicly disclosed.

 

Key to abbreviations and symbol

ADR = American Depositary Receipts

CAD = Canadian dollars

CDI = CREST Depository Interest

GBP = British pounds

INR = Indian rupees

USD/$ = U.S. dollars

 

See Notes to Financial Statements

 

12 EuroPacific Growth Fund
 

Financial statements

 

Statement of assets and liabilities
at September 30, 2018
unaudited
(dollars in thousands)

 

Assets:          
Investment securities, at value:          
Unaffiliated issuers (cost: $107,799,071)  $144,761,018      
Affiliated issuers (cost: $14,410,505)   17,470,498   $162,231,516 
Cash        246,812 
Cash denominated in currencies other than U.S. dollars (cost: $60,058)        60,065 
Receivables for:          
Sales of investments   199,547      
Sales of fund’s shares   485,362      
Dividends and interest   270,107      
Other   37,961    992,977 
         163,531,370 
Liabilities:          
Unrealized depreciation on open forward currency contracts        3,446 
Payables for:          
Purchases of investments   300,927      
Repurchases of fund’s shares   441,756      
Investment advisory services   54,911      
Services provided by related parties   22,039      
Trustees’ deferred compensation   4,144      
Non-U.S. taxes   152,236      
Other   4,036    980,049 
Net assets at September 30, 2018       $162,547,875 
           
Net assets consist of:          
Capital paid in on shares of beneficial interest       $119,315,800 
Total distributable earnings       43,232,075 
Net assets at September 30, 2018       $162,547,875 

 

See Notes to Financial Statements

 

EuroPacific Growth Fund 13
 

(dollars and shares in thousands, except per-share amounts)

 

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (3,072,808 total shares outstanding)

 

   Net assets   Shares
outstanding
   Net asset value
per share
 
Class A  $26,846,403    506,082   $53.05 
Class C   1,192,694    23,133    51.56 
Class T   11    *   53.10 
Class F-1   3,433,023    65,040    52.78 
Class F-2   25,845,935    488,214    52.94 
Class F-3   11,314,818    213,063    53.11 
Class 529-A   1,439,443    27,472    52.40 
Class 529-C   244,563    4,792    51.03 
Class 529-E   64,779    1,249    51.86 
Class 529-T   12    *   53.08 
Class 529-F-1   134,182    2,560    52.42 
Class R-1   235,836    4,649    50.73 
Class R-2   739,796    14,454    51.18 
Class R-2E   87,047    1,673    52.05 
Class R-3   4,040,715    77,969    51.82 
Class R-4   9,215,522    177,413    51.94 
Class R-5E   1,294,786    24,565    52.71 
Class R-5   8,153,070    153,841    53.00 
Class R-6   68,265,240    1,286,639    53.06 

 

* Amount less than one thousand.

 

See Notes to Financial Statements

 

14 EuroPacific Growth Fund
 
Statement of operations
for the six months ended September 30, 2018
unaudited
(dollars in thousands)

 

Investment income:          
Income:          
Dividends (net of non-U.S. taxes of $191,978; also includes $127,016 from affiliates)  $1,998,319      
Interest   127,164   $2,125,483 
Fees and expenses*:          
Investment advisory services   343,579      
Distribution services   77,889      
Transfer agent services   46,357      
Administrative services   35,937      
Reports to shareholders   2,140      
Registration statement and prospectus   2,840      
Trustees’ compensation   226      
Auditing and legal   170      
Custodian   15,602      
State and local taxes   3      
Other   748    525,491 
Net investment income        1,599,992 
           
Net realized gain and unrealized depreciation:          
Net realized gain (loss) on:          
Investments (net of non-U.S. taxes of $3,015):          
Unaffiliated issuers   2,416,238      
Affiliated issuers   (32,476)     
Forward currency contracts   55,550      
Currency transactions   (21,243)   2,418,069 
Net unrealized (depreciation) appreciation on:          
Investments (net of non-U.S. taxes of $133,317):          
Unaffiliated issuers   (8,198,226)     
Affiliated issuers   (1,813,012)     
Forward currency contracts   (4,429)     
Currency translations   23,853    (9,991,814)
Net realized gain and unrealized depreciation        (7,573,745)
           
Net decrease in net assets resulting from operations       $(5,973,753)

 

* Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

 

See Notes to Financial Statements

 

EuroPacific Growth Fund 15
 

Statements of changes in net assets

(dollars in thousands)

 

   Six months ended
September 30
2018*
   Year ended
March 31
2018
 
Operations:        
Net investment income  $1,599,992   $1,587,081 
Net realized gain   2,418,069    8,721,963 
Net unrealized (depreciation) appreciation   (9,991,814)   17,390,904 
Net (decrease) increase in net assets resulting from operations   (5,973,753)   27,699,948 
           
Distributions paid to shareholders   (4,927,981)   (7,539,524)
           
Net capital share transactions   6,779,787    14,228,851 
           
Total (decrease) increase in net assets   (4,121,947)   34,389,275 
           
Net assets:          
Beginning of period   166,669,822    132,280,547 
End of period  $162,547,875   $166,669,822 

 

* Unaudited
Prior year comparative amounts have been adjusted to reflect current presentation under new accounting standards. Prior year distributions were $1,625,899 from dividends from net investment income and $5,913,625 from net realized gains on investments.

 

See Notes to Financial Statements

 

16 EuroPacific Growth Fund
 
Notes to financial statements unaudited

 

1. Organization

 

EuroPacific Growth Fund (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide long-term growth of capital. Shareholders approved a proposal to reorganize the fund from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in the next 12 months; however, the fund reserves the right to delay the implementation.

 

The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:

 

Share class  Initial sales charge  Contingent deferred sales
charge upon redemption
  Conversion feature  
Classes A and 529-A  Up to 5.75%  None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge)  None  
Class C  None  1% for redemptions within one year of purchase  Class C converts to Class F-1 after 10 years  
Class 529-C  None  1% for redemptions within one year of purchase  Class 529-C converts to Class 529-A after 10 years  
Class 529-E  None  None  None  
Classes T and 529-T*  Up to 2.50%  None  None  
Classes F-1, F-2, F-3 and 529-F-1  None  None  None  
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6  None  None  None  
* Class T and 529-T shares are not available for purchase.

 

Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.

 

EuroPacific Growth Fund 17
 

2. Significant accounting policies

 

The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

 

Cash — Cash may include amounts held in an interest bearing deposit facility.

 

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 fixed-income securities are amortized daily over the expected life of the security.

 

Class allocations — Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.

 

Distributions paid to shareholders — Income dividends and capital gain distributions 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. 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 in the fund’s statement of operations. 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.

 

18 EuroPacific Growth Fund
 

3. Valuation

 

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. 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.

 

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, 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

 

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

 

EuroPacific Growth Fund 19
 

appropriate by the fund’s investment adviser. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing 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 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

 

20 EuroPacific Growth Fund
 

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 tables present the fund’s valuation levels as of September 30, 2018 (dollars in thousands):

 

   Investment securities
   Level 1   Level 2   Level 3   Total 
Assets:                    
Common stocks:                    
Information technology  $29,180,433   $   $   $29,180,433 
Financials   25,785,910    348,188        26,134,098 
Consumer discretionary   18,675,842    321,478    271,655    19,268,975 
Industrials   15,915,340            15,915,340 
Health care   12,859,112            12,859,112 
Materials   12,614,719            12,614,719 
Consumer staples   10,085,456            10,085,456 
Energy   8,990,209            8,990,209 
Utilities   3,803,263            3,803,263 
Telecommunication services   3,333,770            3,333,770 
Real estate   1,183,406        802    1,184,208 
Miscellaneous   7,896,495        102,943    7,999,438 
Rights & warrants       121,688        121,688 
Bonds, notes & other debt instruments       49,752        49,752 
Short-term securities       10,691,055        10,691,055 
Total  $150,323,955   $11,532,161   $375,400   $162,231,516 
         
   Other investments* 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Unrealized depreciation on open forward currency contracts  $   $(3,446)  $   $(3,446)
                     
* Forward currency contracts are not included in the investment portfolio.
   
EuroPacific Growth Fund 21
 

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 common stocks and other securities held by the fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

 

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

 

Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.

 

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. 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. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.

 

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital

 

22 EuroPacific Growth Fund
 

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, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.

 

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and 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 investment results to lag relevant benchmarks or other funds with similar objectives.

 

5. Certain investment techniques

 

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 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 currency 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 settlement 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 fund’s statement of operations. The average month-end notional amount of open forward currency contracts while held was $1,060,032,000.

 

EuroPacific Growth Fund 23
 

The following tables present the financial statement impacts resulting from the fund’s use of forward currency contracts as of, or for the six months ended, September 30, 2018 (dollars in thousands):

 

      Assets   Liabilities 
Contracts  Risk type  Location on statement of
assets and liabilities
  Value   Location on statement of
assets and liabilities
  Value 
Forward currency  Currency  Unrealized appreciation on open forward currency contracts  $   Unrealized depreciation on open forward currency contracts  $3,446 
                    
      Net realized gain   Net unrealized depreciation 
Contracts  Risk type  Location on statement of
operations
  Value   Location on statement of
operations
   Value 
Forward currency  Currency  Net realized gain on forward currency contracts  $55,550   Net unrealized depreciation on forward currency contracts  $(4,429)

 

Collateral — The fund participates in a collateral program due to its use of forward currency contracts that calls for the fund to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by the fund, if any, is disclosed in the fund’s investment portfolio, and cash collateral pledged by the fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in the fund’s statement of assets and liabilities.

 

Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.

 

24 EuroPacific Growth Fund
 

The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of September 30, 2018, if close-out netting was exercised (dollars in thousands):

 

   Gross amounts
recognized in the
   Gross amounts not offset in the
statement of assets and liabilities and
subject to a master netting agreement
     
Counterparty  statement of assets
and liabilities
   Available
to offset
   Non-cash
collateral*
   Cash
collateral
   Net
amount
 
Liabilities:                         
Citibank  $271   $   $   $   $271 
Goldman Sachs   2,408        (2,408)        
JPMorgan Chase   266                266 
Morgan Stanley   501                501 
Total  $3,446   $   $(2,408)  $   $1,038 

 

*Non-cash collateral is shown on a settlement basis.

 

6. Taxation and distributions

 

Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds 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 September 30, 2018, 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 significant interest or penalties.

 

The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

 

Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

 

EuroPacific Growth Fund 25
 

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; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; cost of investments sold and income on certain investments. 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.

 

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of March 31, 2018, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

 

Undistributed ordinary income  $101,338 
Undistributed long-term capital gains   4,825,162 

 

As of September 30, 2018, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Gross unrealized appreciation on investments  $45,041,064 
Gross unrealized depreciation on investments   (6,235,252)
Net unrealized appreciation on investments   38,805,812 
Cost of investments   123,422,258 
   
26 EuroPacific Growth Fund
 

Distributions paid were characterized for tax purposes as follows (dollars in thousands):

 

   Six months ended September 30, 2018   Year ended March 31, 2018 
Share class  Ordinary
income
   Long-term
 capital gains
   Total
distributions
paid
   Ordinary
income
   Long-term
capital gains
   Total
distributions
paid
 
Class A  $2,545   $822,876   $825,421   $247,242   $1,087,109   $1,334,351 
Class B1                           
Class C       38,319    38,319    1,675    52,155    53,830 
Class T2   3   3   3   3   1    1 
Class F-1       122,672    122,672    37,697    175,011    212,708 
Class F-2   18,846    757,116    775,962    265,665    941,406    1,207,071 
Class F-3   9,564    291,620    301,184    82,028    220,257    302,285 
Class 529-A       44,319    44,319    12,322    54,000    66,322 
Class 529-B1                           
Class 529-C       7,920    7,920    214    12,822    13,036 
Class 529-E       2,049    2,049    423    2,633    3,056 
Class 529-T2   3   3   3   3   1    1 
Class 529-F-1   75    3,980    4,055    1,305    4,721    6,026 
Class R-1       7,689    7,689    434    10,611    11,045 
Class R-2       23,547    23,547    1,396    32,753    34,149 
Class R-2E       7,607    7,607    1,191    9,019    10,210 
Class R-3       130,304    130,304    27,704    187,911    215,615 
Class R-4   73    295,896    295,969    93,792    417,928    511,720 
Class R-5E   548    20,912    21,460    2,014    6,397    8,411 
Class R-5   7,469    269,309    276,778    103,478    349,875    453,353 
Class R-6   63,803    1,978,923    2,042,726    747,319    2,349,015    3,096,334 
Total  $102,923   $4,825,058   $4,927,981   $1,625,899   $5,913,625   $7,539,524 

 

1 Class B and 529-B shares were fully liquidated on May 5, 2017.
2 Class T and 529-T shares began investment operations on April 7, 2017.
3 Amount less than one thousand.

 

EuroPacific Growth Fund 27
 

7. Fees and transactions with related parties

 

CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.

 

Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.690% on the first $500 million of average daily net assets and decreasing to 0.394% on such assets in excess of $144 billion. For the six months ended September 30, 2018, the investment advisory services fee was $343,579,000, which was equivalent to an annualized rate of 0.413% of average daily net assets.

 

Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:

 

Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

 

        Share class  Currently approved limits  Plan limits
  Class A   0.25%   0.25%
  Class 529-A   0.25    0.50 
  Classes C, 529-C and R-1   1.00    1.00 
  Class R-2   0.75    1.00 
  Class R-2E   0.60    0.85 
  Classes 529-E and R-3   0.50    0.75 
  Classes T, F-1, 529-T, 529-F-1 and R-4   0.25    0.50 

 

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual

 

28 EuroPacific Growth Fund
 

expense limits are not exceeded. As of September 30, 2018, unreimbursed expenses subject to reimbursement totaled $118,000 for Class A shares. There were no unreimbursed expenses subject to reimbursement for Class 529-A shares.

 

Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

 

Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, T, F, 529 and R shares. Administrative services are provided by CRMC to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement between the fund and the investment adviser provides the fund the ability to charge an administrative services fee of 0.05% of average daily net assets for all share classes. Currently Class A shares pay an annual fee of 0.01% of average daily net assets (which could be increased as noted above) and Class C, T, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.

 

529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica, a tax-advantaged savings program for individuals with disabilities. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 and ABLE shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.

 

EuroPacific Growth Fund 29
 

For the six months ended September 30, 2018, class-specific expenses under the agreements were as follows (dollars in thousands):

 

Share class  Distribution
services
   Transfer agent
services
   Administrative
services
   529 plan
services
 
Class A   $35,288   $17,223    $1,411     Not applicable  
Class C   6,374    714    321     Not applicable  
Class T       *   *    Not applicable  
Class F-1   4,901    2,441    987     Not applicable  
Class F-2   Not applicable    12,107    6,584     Not applicable  
Class F-3   Not applicable    189    2,568     Not applicable  
Class 529-A   1,716    726    376     $493  
Class 529-C   1,293    129    66     87  
Class 529-E   170    21    17     22  
Class 529-T       *   *    *
Class 529-F-1       65    34     45  
Class R-1   1,265    136    63     Not applicable  
Class R-2   2,926    1,350    195     Not applicable  
Class R-2E   619    221    52     Not applicable  
Class R-3   10,931    3,237    1,093     Not applicable  
Class R-4   12,406    4,964    2,486     Not applicable  
Class R-5E   Not applicable    558    225     Not applicable  
Class R-5   Not applicable    2,051    2,245     Not applicable  
Class R-6   Not applicable    225    17,214     Not applicable  
Total class-specific expenses   $77,889   $46,357    $35,937     $647  

 

* Amount less than one thousand.

 

30 EuroPacific Growth Fund
 

Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $226,000 in the fund’s statement of operations reflects $243,000 in current fees (either paid in cash or deferred) and a net decrease of $17,000 in the value of the deferred amounts.

 

Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.

 

Security transactions with related funds — The fund may purchase from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.

 

Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the six months ended September 30, 2018.

 

EuroPacific Growth Fund 31
 

8. Capital share transactions

 

Capital share transactions in the fund were as follows (dollars and shares in thousands):

 

   Sales1   Reinvestments of
distributions
   Repurchases1   Net (decrease) increase 
Share class  Amount   Shares   Amount   Shares   Amount   Shares   Amount     Shares 
                                 
Six months ended September 30, 2018
                                 
Class A  $956,593    17,395   $810,459    14,563   $(2,124,099)   (38,839)  $(357,047)   (6,881)
Class C   79,183    1,470    37,902    699    (184,010)   (3,432)   (66,925)   (1,263)
Class T                                
Class F-1   401,439    7,322    120,000    2,167    (1,208,216)   (22,197)   (686,777)   (12,708)
Class F-2   4,530,451    82,695    728,233    13,121    (3,506,518)   (64,540)   1,752,166    31,276 
Class F-3   3,118,670    57,300    286,332    5,144    (900,096)   (16,514)   2,504,906    45,930 
Class 529-A   78,675    1,443    44,306    806    (108,810)   (2,020)   14,171    229 
Class 529-C   14,915    281    7,918    147    (37,912)   (713)   (15,079)   (285)
Class 529-E   2,782    51    2,047    39    (6,008)   (113)   (1,179)   (23)
Class 529-T           2   2           2   2
Class 529-F-1   16,092    296    4,052    74    (10,640)   (198)   9,504    172 
Class R-1   11,919    226    7,686    144    (29,187)   (558)   (9,582)   (188)
Class R-2   78,209    1,473    23,527    437    (124,878)   (2,353)   (23,142)   (443)
Class R-2E   39,186    734    7,607    139    (201,380)   (3,751)   (154,587)   (2,878)
Class R-3   389,815    7,290    130,131    2,391    (813,465)   (15,187)   (293,519)   (5,506)
Class R-4   847,982    15,807    295,928    5,430    (1,541,914)   (28,942)   (398,004)   (7,705)
Class R-5E   824,342    15,126    21,465    389    (89,719)   (1,662)   756,088    13,853 
Class R-5   1,232,122    22,263    276,543    4,978    (1,714,660)   (31,507)   (205,995)   (4,266)
Class R-6   7,741,095    141,998    2,036,089    36,614    (5,822,396)   (106,385)   3,954,788    72,227 
Total net increase (decrease)  $20,363,470    373,170   $4,840,225    87,282   $(18,423,908)   (338,911)  $6,779,787    121,541 

 

32 EuroPacific Growth Fund
 
   Sales1   Reinvestments of
distributions
   Repurchases1   Net (decrease)
increase
 
Share class  Amount   Shares   Amount   Shares   Amount   Shares   Amount   Shares 
                             
Year ended March 31, 2018
 
Class A  $2,843,403    51,520   $1,307,706    24,158   $(4,581,031)   (83,563)  $(429,922)   (7,885)
Class B3   2   2           (3,850)   (78)   (3,850)   (78)
Class C   283,062    5,244    53,157    1,007    (405,218)   (7,594)   (68,999)   (1,343)
Class T4   10    2                   10    2
Class F-1   1,107,097    20,232    207,272    3,851    (1,727,999)   (31,488)   (413,630)   (7,405)
Class F-2   8,507,578    154,605    1,143,934    21,198    (9,998,054)   (185,550)   (346,542)   (9,747)
Class F-3   8,492,577    157,263    288,899    5,256    (1,064,140)   (18,947)   7,717,336    143,572 
Class 529-A   277,885    5,013    66,304    1,237    (166,157)   (3,035)   178,032    3,215 
Class 529-B3   2   2           (378)   (8)   (378)   (8)
Class 529-C   39,172    733    13,030    251    (168,308)   (3,097)   (116,106)   (2,113)
Class 529-E   8,365    155    3,057    57    (9,497)   (176)   1,925    36 
Class 529-T4   10    2   1    2           11    2
Class 529-F-1   27,992    513    6,025    112    (17,854)   (325)   16,163    300 
Class R-1   33,981    642    11,045    213    (64,379)   (1,218)   (19,353)   (363)
Class R-2   194,136    3,633    34,093    650    (287,727)   (5,407)   (59,498)   (1,124)
Class R-2E   49,166    913    10,210    191    (24,043)   (438)   35,333    666 
Class R-3   1,004,933    18,679    215,367    4,069    (1,745,504)   (32,510)   (525,204)   (9,762)
Class R-4   2,226,257    41,532    511,553    9,646    (3,768,347)   (69,864)   (1,030,537)   (18,686)
Class R-5E   624,795    11,154    8,410    156    (43,879)   (781)   589,326    10,529 
Class R-5   1,764,445    32,126    452,863    8,386    (3,236,891)   (59,603)   (1,019,583)   (19,091)
Class R-6   17,132,391    310,505    3,083,362    56,893    (10,491,436)   (190,228)   9,724,317    177,170 
Total net increase (decrease)  $44,617,255    814,462   $7,416,288    137,331   $(37,804,692)   (693,910)  $14,228,851    257,883 

 

1 Includes exchanges between share classes of the fund.
2 Amount less than one thousand.
3 Class B and 529-B shares were fully liquidated on May 5, 2017.
4 Class T and 529-T shares began investment operations on April 7, 2017.

 

9. Investment transactions

 

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $28,094,284,000 and $25,912,352,000, respectively, during the six months ended September 30, 2018.

 

EuroPacific Growth Fund 33
 

Financial highlights

 

       (Loss) income from investment operations1 
Period ended  Net asset
value,
beginning
of period
   Net
investment
income2
   Net (losses) gains
on securities
(both realized
and unrealized)
   Total from
investment
operations
 
Class A:                    
9/30/20184,5  $56.66   $.49   $(2.47)  $(1.98)
3/31/2018   49.30    .47    9.51    9.98 
3/31/2017   44.28    .44    5.14    5.58 
3/31/2016   49.91    .44    (4.68)   (4.24)
3/31/2015   49.37    .43    .76    1.19 
3/31/2014   42.38    .69    6.75    7.44 
Class C:                    
9/30/20184,5   55.32    .27    (2.41)   (2.14)
3/31/2018   48.19    .04    9.29    9.33 
3/31/2017   43.25    .08    5.02    5.10 
3/31/2016   48.75    .06    (4.56)   (4.50)
3/31/2015   48.22    .05    .73    .78 
3/31/2014   41.41    .32    6.59    6.91 
Class T:                    
9/30/20184,5   56.69    .55    (2.48)   (1.93)
3/31/201810   49.19    .58    9.63    10.21 
Class F-1:                    
9/30/20184,5   56.40    .51    (2.51)   (2.00)
3/31/2018   49.08    .45    9.46    9.91 
3/31/2017   44.08    .43    5.11    5.54 
3/31/2016   49.67    .41    (4.64)   (4.23)
3/31/2015   49.10    .45    .71    1.16 
3/31/2014   42.15    .67    6.72    7.39 
Class F-2:                    
9/30/20184,5   56.52    .54    (2.46)   (1.92)
3/31/2018   49.17    .61    9.48    10.09 
3/31/2017   44.19    .55    5.12    5.67 
3/31/2016   49.82    .56    (4.68)   (4.12)
3/31/2015   49.32    .53    .76    1.29 
3/31/2014   42.33    .82    6.74    7.56 
Class F-3:                    
9/30/20184,5   56.68    .53    (2.43)   (1.90)
3/31/2018   49.32    .59    9.58    10.17 
3/31/20174,11   47.46    .24    1.62    1.86 

 

34 EuroPacific Growth Fund
 
Dividends and distributions                     
Dividends
(from net
investment
income)
   Distributions
(from capital
gains)
   Total
dividends
and
distributions
   Net asset
value, end
of period
   Total
return3
   Net assets,
end of period
(in millions)
   Ratio of
expenses
to average
net assets
   Ratio of net
income
to average
net assets2
 
                                                             
$(.01)  $(1.62)  $(1.63)  $53.05    (3.79)%6  $26,846    .82%7   1.77%7
 (.49)   (2.13)   (2.62)   56.66    20.74    29,067    .82    .86 
 (.56)       (.56)   49.30    12.72    25,678    .85    .95 
 (.80)   (.59)   (1.39)   44.28    (8.60)   26,556    .83    .92 
 (.65)       (.65)   49.91    2.48    30,770    .83    .88 
 (.45)       (.45)   49.37    17.57    32,295    .84    1.50 
                                                             
     (1.62)   (1.62)   51.56    (4.17)6   1,193    1.597   1.027
 (.07)   (2.13)   (2.20)   55.32    19.82    1,350    1.60    .08 
 (.16)       (.16)   48.19    11.82    1,240    1.63    .17 
 (.41)   (.59)   (1.00)   43.25    (9.30)   1,474    1.62    .13 
 (.25)       (.25)   48.75    1.65    1,803    1.61    .11 
 (.10)       (.10)   48.22    16.69    1,990    1.62    .72 
                                                            
 (.04)   (1.62)   (1.66)   53.10    (3.70)6,8   9   .587,8   2.007,8
 (.58)   (2.13)   (2.71)   56.69    21.276,8   9   .607,8   1.077,8
 
     (1.62)   (1.62)   52.78    (3.82)6   3,433    .867   1.857
 (.46)   (2.13)   (2.59)   56.40    20.69    4,385    .86    .83 
 (.54)       (.54)   49.08    12.69    4,179    .87    .93 
 (.77)   (.59)   (1.36)   44.08    (8.60)   4,281    .86    .86 
 (.59)       (.59)   49.67    2.43    6,773    .86    .93 
 (.44)       (.44)   49.10    17.55    9,425    .87    1.47 
                                                            
 (.04)   (1.62)   (1.66)   52.94    (3.69)6   25,846    .587   1.967
 (.61)   (2.13)   (2.74)   56.52    21.05    25,826    .59    1.11 
 (.69)       (.69)   49.17    12.99    22,949    .60    1.19 
 (.92)   (.59)   (1.51)   44.19    (8.36)   19,386    .60    1.18 
 (.79)       (.79)   49.82    2.69    16,273    .59    1.06 
 (.57)       (.57)   49.32    17.90    10,714    .59    1.78 
                                                             
 (.05)   (1.62)   (1.67)   53.11    (3.64)6   11,315    .497   1.937
 (.68)   (2.13)   (2.81)   56.68    21.15    9,473    .49    1.06 
             49.32    3.926   1,162    .096   .506

 

See end of table for footnotes.

 

EuroPacific Growth Fund 35
 

Financial highlights (continued)

 

       (Loss) income from investment operations1 
Period ended  Net asset
value,
beginning
of period
   Net
investment
income2
   Net (losses) gains
on securities
(both realized
and unrealized)
   Total from
investment
operations
 
Class 529-A:                    
9/30/20184,5  $56.00   $.46   $(2.44)  $(1.98)
3/31/2018   48.77    .44    9.40    9.84 
3/31/2017   43.82    .41    5.09    5.50 
3/31/2016   49.41    .40    (4.63)   (4.23)
3/31/2015   48.89    .40    .75    1.15 
3/31/2014   41.98    .66    6.69    7.35 
Class 529-C:                    
9/30/20184,5   54.79    .26    (2.40)   (2.14)
3/31/2018   47.73    .01    9.21    9.22 
3/31/2017   42.90    .05    4.97    5.02 
3/31/2016   48.38    .04    (4.53)   (4.49)
3/31/2015   47.88    .02    .73    .75 
3/31/2014   41.15    .29    6.54    6.83 
Class 529-E:                    
9/30/20184,5   55.50    .40    (2.42)   (2.02)
3/31/2018   48.35    .31    9.31    9.62 
3/31/2017   43.45    .30    5.04    5.34 
3/31/2016   49.00    .29    (4.59)   (4.30)
3/31/2015   48.49    .27    .75    1.02 
3/31/2014   41.65    .54    6.63    7.17 
Class 529-T:                    
9/30/20184,5   56.68    .53    (2.48)   (1.95)
3/31/201810   49.19    .56    9.62    10.18 
Class 529-F-1:                    
9/30/20184,5   55.99    .52    (2.44)   (1.92)
3/31/2018   48.74    .56    9.40    9.96 
3/31/2017   43.81    .51    5.07    5.58 
3/31/2016   49.40    .50    (4.62)   (4.12)
3/31/2015   48.89    .51    .74    1.25 
3/31/2014   41.97    .75    6.70    7.45 
Class R-1:                    
9/30/20184,5   54.46    .27    (2.38)   (2.11)
3/31/2018   47.49    .05    9.14    9.19 
3/31/2017   42.69    .08    4.96    5.04 
3/31/2016   48.14    .07    (4.50)   (4.43)
3/31/2015   47.64    .06    .72    .78 
3/31/2014   40.90    .33    6.50    6.83 

 

36 EuroPacific Growth Fund
 
Dividends and distributions                     
Dividends
(from net
investment
income)
   Distributions
(from capital
gains)
   Total
dividends
and
distributions
   Net asset
value, end
of period
   Total
return3
   Net assets,
end of period
(in millions)
   Ratio of
expenses
to average
net assets
   Ratio of net
income

to average
net assets2
 
                                                            
$   $(1.62)  $(1.62)  $52.40    (3.83)%6  $1,439    .88%7   1.70%7
 (.48)   (2.13)   (2.61)   56.00    20.71    1,525    .87    .81 
 (.55)       (.55)   48.77    12.65    1,172    .90    .90 
 (.77)   (.59)   (1.36)   43.82    (8.64)   1,103    .90    .86 
 (.63)       (.63)   49.41    2.41    1,205    .89    .82 
 (.44)       (.44)   48.89    17.52    1,187    .90    1.45 
                                                             
     (1.62)   (1.62)   51.03    (4.19)6   245    1.637   .997
 (.03)   (2.13)   (2.16)   54.79    19.76    278    1.65    .03 
 (.19)       (.19)   47.73    11.76    343    1.68    .12 
 (.40)   (.59)   (.99)   42.90    (9.35)   335    1.68    .08 
 (.25)       (.25)   48.38    1.62    374    1.67    .04 
 (.10)       (.10)   47.88    16.57    378    1.68    .66 
                                                             
     (1.62)   (1.62)   51.86    (3.93)6   65    1.117   1.497
 (.34)   (2.13)   (2.47)   55.50    20.41    71    1.11    .57 
 (.44)       (.44)   48.35    12.39    60    1.13    .66 
 (.66)   (.59)   (1.25)   43.45    (8.86)   57    1.14    .62 
 (.51)       (.51)   49.00    2.15    62    1.14    .57 
 (.33)       (.33)   48.49    17.22    63    1.15    1.19 
                                                             
 (.03)   (1.62)   (1.65)   53.08    (3.73)6,8   9   .647,8   1.917,8
 (.56)   (2.13)   (2.69)   56.68    21.226,8   9   .647,8   1.037,8
                                                             
 (.03)   (1.62)   (1.65)   52.42    (3.72)6   134    .657   1.907
 (.58)   (2.13)   (2.71)   55.99    20.96    134    .65    1.02 
 (.65)       (.65)   48.74    12.88    102    .68    1.11 
 (.88)   (.59)   (1.47)   43.81    (8.44)   90    .69    1.07 
 (.74)       (.74)   49.40    2.62    96    .67    1.04 
 (.53)       (.53)   48.89    17.75    90    .68    1.65 
 
     (1.62)   (1.62)   50.73    (4.18)6   236    1.607   1.017
 (.09)   (2.13)   (2.22)   54.46    19.82    263    1.60    .09 
 (.24)       (.24)   47.49    11.86    247    1.61    .19 
 (.43)   (.59)   (1.02)   42.69    (9.28)   248    1.61    .15 
 (.28)       (.28)   48.14    1.67    285    1.59    .12 
 (.09)       (.09)   47.64    16.70    299    1.61    .75 

 

See end of table for footnotes.

 

EuroPacific Growth Fund 37
 

Financial highlights (continued)

 

       (Loss) income from investment operations1 
Period ended  Net asset
value,
beginning
of period
   Net
investment
income2
   Net (losses) gains
on securities
(both realized
and unrealized)
   Total from
investment
operations
 
Class R-2:                    
9/30/20184,5  $54.93   $.27   $(2.40)  $(2.13)
3/31/2018   47.88    .06    9.21    9.27 
3/31/2017   43.01    .09    5.00    5.09 
3/31/2016   48.49    .08    (4.53)   (4.45)
3/31/2015   47.96    .07    .73    .80 
3/31/2014   41.20    .34    6.54    6.88 
Class R-2E:                    
9/30/20184,5   55.76    .52    (2.61)   (2.09)
3/31/2018   48.59    .20    9.38    9.58 
3/31/2017   43.79    .18    5.14    5.32 
3/31/2016   49.67    .52    (4.89)   (4.37)
3/31/20154,12   50.08    .10    .27    .37 
Class R-3:                    
9/30/20184,5   55.48    .40    (2.44)   (2.04)
3/31/2018   48.32    .30    9.31    9.61 
3/31/2017   43.40    .30    5.04    5.34 
3/31/2016   48.93    .29    (4.59)   (4.30)
3/31/2015   48.40    .28    .74    1.02 
3/31/2014   41.56    .54    6.62    7.16 
Class R-4:                    
9/30/20184,5   55.52    .47    (2.43)   (1.96)
3/31/2018   48.35    .46    9.32    9.78 
3/31/2017   43.45    .43    5.03    5.46 
3/31/2016   48.99    .43    (4.59)   (4.16)
3/31/2015   48.48    .42    .74    1.16 
3/31/2014   41.63    .67    6.64    7.31 
Class R-5E:                    
9/30/20184,5   56.29    .37    (2.29)   (1.92)
3/31/2018   49.02    .59    9.45    10.04 
3/31/2017   44.14    .53    5.09    5.62 
3/31/20164,14   48.16    .20    (2.65)   (2.45)
Class R-5:                    
9/30/20184,5   56.57    .58    (2.49)   (1.91)
3/31/2018   49.22    .64    9.48    10.12 
3/31/2017   44.22    .58    5.13    5.71 
3/31/2016   49.85    .58    (4.68)   (4.10)
3/31/2015   49.32    .59    .74    1.33 
3/31/2014   42.33    .82    6.76    7.58 

 

38 EuroPacific Growth Fund
 
Dividends and distributions                     
Dividends
(from net
investment
income)
   Distributions
(from capital
gains)
   Total
dividends
and
distributions
   Net asset
value, end
of period
   Total
return3
   Net assets,
end of period
(in millions)
   Ratio of
expenses
to average
net assets
   Ratio of net
income
to average
net assets2
 
                                      
$   $(1.62)  $(1.62)  $51.18    (4.18)%6  $740    1.58%7   1.01%7
 (.09)   (2.13)   (2.22)   54.93    19.84    818    1.58    .11 
 (.22)       (.22)   47.88    11.88    767    1.60    .20 
 (.44)   (.59)   (1.03)   43.01    (9.25)   800    1.58    .18 
 (.27)       (.27)   48.49    1.70    975    1.57    .15 
 (.12)       (.12)   47.96    16.71    1,079    1.57    .76 
                                      
     (1.62)   (1.62)   52.05    (4.05)6   87    1.307   1.887
 (.28)   (2.13)   (2.41)   55.76    20.19    254    1.29    .38 
 (.52)       (.52)   48.59    12.25    189    1.28    .40 
 (.92)   (.59)   (1.51)   43.79    (8.89)   8    1.18    1.25 
 (.78)       (.78)   49.67    .826   9   1.267   .287
                                      
     (1.62)   (1.62)   51.82    (3.96)6   4,041    1.147   1.487
 (.32)   (2.13)   (2.45)   55.48    20.36    4,631    1.14    .56 
 (.42)       (.42)   48.32    12.40    4,505    1.14    .66 
 (.64)   (.59)   (1.23)   43.40    (8.87)   5,029    1.14    .62 
 (.49)       (.49)   48.93    2.16    6,482    1.13    .59 
 (.32)       (.32)   48.40    17.24    7,219    1.14    1.20 
                                      
 13   (1.62)   (1.62)   51.94    (3.83)6   9,215    .847   1.757
 (.48)   (2.13)   (2.61)   55.52    20.76    10,278    .83    .85 
 (.56)       (.56)   48.35    12.70    9,854    .85    .96 
 (.79)   (.59)   (1.38)   43.45    (8.58)   11,310    .85    .92 
 (.65)       (.65)   48.99    2.45    13,488    .84    .88 
 (.46)       (.46)   48.48    17.57    14,394    .84    1.50 
                                      
 (.04)   (1.62)   (1.66)   52.71    (3.69)6   1,295    .617   1.387
 (.64)   (2.13)   (2.77)   56.29    21.01    603    .62    1.06 
 (.74)       (.74)   49.02    12.89    9    .62    1.14 
 (.98)   (.59)   (1.57)   44.14    (5.19)6   9   .256   .466
                                      
 (.04)   (1.62)   (1.66)   53.00    (3.66)6   8,153    .537   2.127
 (.64)   (2.13)   (2.77)   56.57    21.09    8,944    .53    1.16 
 (.71)       (.71)   49.22    13.07    8,721    .54    1.27 
 (.94)   (.59)   (1.53)   44.22    (8.32)   9,285    .54    1.21 
 (.80)       (.80)   49.85    2.77    11,418    .53    1.19 
 (.59)       (.59)   49.32    17.93    12,197    .54    1.79 

 

See end of table for footnotes.

 

EuroPacific Growth Fund 39
 

Financial highlights (continued)

 

       (Loss) income from investment operations1 
Period ended  Net asset
value,
beginning
of period
   Net
investment
income2
   Net (losses) gains
on securities
(both realized
and unrealized)
   Total from
investment
operations
 
Class R-6:                    
9/30/20184,5  $56.63   $.56   $(2.46)  $(1.90)
3/31/2018   49.27    .65    9.51    10.16 
3/31/2017   44.27    .60    5.14    5.74 
3/31/2016   49.90    .60    (4.67)   (4.07)
3/31/2015   49.38    .60    .74    1.34 
3/31/2014   42.38    .85    6.76    7.61 

 

    Six months ended Year ended March 31
    September 30,
20184,5,6
  2018   2017   2016   2015   2014
Portfolio turnover rate for all share classes   17%   29%   36%   30%   28%   28%

 

See Notes to Financial Statements

 

40 EuroPacific Growth Fund
 

 
 

Dividends and distributions                     
Dividends
(from net
investment
income)
   Distributions
(from capital
gains)
   Total
dividends
and
distributions
   Net asset
value, end
of period
   Total
return3
   Net assets,
end of period
(in millions)
   Ratio of
expenses
to average
net assets
   Ratio of net
income
to average
net assets2
 
                                      
$(.05)  $(1.62)  $(1.67)  $53.06    (3.64)%6  $68,265    .49%7   2.05%7
 (.67)   (2.13)   (2.80)   56.63    21.17    68,770    .49    1.18 
 (.74)       (.74)   49.27    13.10    51,100    .50    1.30 
 (.97)   (.59)   (1.56)   44.27    (8.26)   41,539    .50    1.27 
 (.82)       (.82)   49.90    2.80    38,346    .49    1.20 
 (.61)       (.61)   49.38    17.97    32,575    .49    1.85 

 

1 Based on average shares outstanding.
2 For the year ended March 31, 2014, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $.19 and .40 percentage points, respectively. The impact to the other share classes would have been similar.
3 Total returns exclude any applicable sales charges, including contingent deferred sales charges.
4 Based on operations for a period that is less than a full year.
5 Unaudited.
6 Not annualized.
7 Annualized.
8 All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
9 Amount less than $1 million.
10 Class T and 529-T shares began investment operations on April 7, 2017.
11 Class F-3 shares began investment operations on January 27, 2017.
12 Class R-2E shares began investment operations on August 29, 2014.
13 Amount less than $.01.
14 Class R-5E shares began investment operations on November 20, 2015.

 

EuroPacific Growth Fund 41
 
Expense example unaudited

 

As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (April 1, 2018, through September 30, 2018).

 

Actual expenses:

The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

 

Hypothetical example for comparison purposes:

The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

 

Notes:

Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

 

Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

42 EuroPacific Growth Fund
 
   Beginning
account value
4/1/2018
   Ending
account value
9/30/2018
   Expenses paid
during period*
   Annualized
expense ratio
 
Class A – actual return  $1,000.00   $962.11   $4.03    .82%
Class A – assumed 5% return   1,000.00    1,020.96    4.15    .82 
Class C – actual return   1,000.00    958.29    7.81    1.59 
Class C – assumed 5% return   1,000.00    1,017.10    8.04    1.59 
Class T – actual return   1,000.00    963.02    2.85    .58 
Class T – assumed 5% return   1,000.00    1,022.16    2.94    .58 
Class F-1 – actual return   1,000.00    961.81    4.23    .86 
Class F-1 – assumed 5% return   1,000.00    1,020.76    4.36    .86 
Class F-2 – actual return   1,000.00    963.14    2.85    .58 
Class F-2 – assumed 5% return   1,000.00    1,022.16    2.94    .58 
Class F-3 – actual return   1,000.00    963.63    2.41    .49 
Class F-3 – assumed 5% return   1,000.00    1,022.61    2.48    .49 
Class 529-A – actual return   1,000.00    961.70    4.33    .88 
Class 529-A – assumed 5% return   1,000.00    1,020.66    4.46    .88 
Class 529-C – actual return   1,000.00    958.09    8.00    1.63 
Class 529-C – assumed 5% return   1,000.00    1,016.90    8.24    1.63 
Class 529-E – actual return   1,000.00    960.65    5.46    1.11 
Class 529-E – assumed 5% return   1,000.00    1,019.50    5.62    1.11 
Class 529-T – actual return   1,000.00    962.71    3.15    .64 
Class 529-T – assumed 5% return   1,000.00    1,021.86    3.24    .64 
Class 529-F-1 – actual return   1,000.00    962.80    3.20    .65 
Class 529-F-1 – assumed 5% return   1,000.00    1,021.81    3.29    .65 
Class R-1 – actual return   1,000.00    958.19    7.85    1.60 
Class R-1 – assumed 5% return   1,000.00    1,017.05    8.09    1.60 
Class R-2 – actual return   1,000.00    958.19    7.76    1.58 
Class R-2 – assumed 5% return   1,000.00    1,017.15    7.99    1.58 
Class R-2E – actual return   1,000.00    959.54    6.39    1.30 
Class R-2E – assumed 5% return   1,000.00    1,018.55    6.58    1.30 
Class R-3 – actual return   1,000.00    960.43    5.60    1.14 
Class R-3 – assumed 5% return   1,000.00    1,019.35    5.77    1.14 
Class R-4 – actual return   1,000.00    961.72    4.13    .84 
Class R-4 – assumed 5% return   1,000.00    1,020.86    4.26    .84 
Class R-5E – actual return   1,000.00    963.06    3.00    .61 
Class R-5E – assumed 5% return   1,000.00    1,022.01    3.09    .61 
Class R-5 – actual return   1,000.00    963.38    2.61    .53 
Class R-5 – assumed 5% return   1,000.00    1,022.41    2.69    .53 
Class R-6 – actual return   1,000.00    963.57    2.41    .49 
Class R-6 – assumed 5% return   1,000.00    1,022.61    2.48    .49 

 

* The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

 

EuroPacific Growth Fund 43
 

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

 

6455 Irvine Center Drive

Irvine, CA 92618-4518

 

Transfer agent for shareholder accounts

American Funds Service Company

(Write to the address near you.)

 

P.O. Box 6007

Indianapolis, IN 46206-6007

 

P.O. Box 2280

Norfolk, VA 23501-2280

 

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

 

Counsel

Dechert LLP

One Bush Street, Suite 1600

San Francisco, CA 94104-4446

 

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

 

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

 

44 EuroPacific Growth Fund
 

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. Fund shares offered through American Funds Distributors, Inc.

 

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

 

A complete September 30, 2018, portfolio of EuroPacific Growth Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

 

EuroPacific Growth Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. Additionally, the list of portfolio holdings is available by calling AFS.

 

This report is for the information of shareholders of EuroPacific Growth Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2018, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 

The Capital Advantage®

 

Since 1931, American Funds by Capital Group has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.

 

Aligned with investor success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1

 

The Capital System

The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

 

American Funds’ superior long-term track record

Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 77% of 10-year periods and 80% of 20-year periods.2 Fund management fees have been among the lowest in the industry.3

 

1 Portfolio manager experience as of December 31, 2017.
2 Based on Class F-2 share results for rolling periods through December 31, 2017. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
3 On average, our management fees were in the lowest quintile 71% of the time, based on the 20-year period ended December 31, 2017, versus comparable Lipper categories, excluding funds of funds.
   
  All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

 

 

 

 

 

ITEM 2 – Code of Ethics

 

Not applicable for filing of semi-annual reports to shareholders.

 

ITEM 3 – Audit Committee Financial Expert

 

Not applicable for filing of semi-annual reports to shareholders.

 

ITEM 4 – Principal Accountant Fees and Services

 

Not applicable for filing of semi-annual reports to shareholders.

 

ITEM 5 – Audit Committee of Listed Registrants

 

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

 

ITEM 6 – Schedule of Investments

 

 

EuroPacific Growth Fund®
Investment portfolio
September 30, 2018
unaudited
Common stocks 93.12%
Information technology 17.95%
Shares Value
(000)
Samsung Electronics Co., Ltd. 84,820,250 $3,551,860
Samsung Electronics Co., Ltd., nonvoting preferred 2,440,000 83,258
Nintendo Co., Ltd.1 9,762,026 3,562,169
Taiwan Semiconductor Manufacturing Co., Ltd. 278,313,649 2,392,733
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) 8,247,523 364,211
Alibaba Group Holding Ltd. (ADR)2 16,687,495 2,749,432
ASML Holding NV 12,926,192 2,414,780
Tencent Holdings Ltd. 55,969,511 2,310,748
SK hynix, Inc. 22,393,000 1,475,707
Amadeus IT Group SA, Class A, non-registered shares 13,035,279 1,211,072
MercadoLibre, Inc.1 3,424,500 1,165,940
Keyence Corp. 1,734,200 1,007,063
Murata Manufacturing Co., Ltd. 5,200,626 799,410
AAC Technologies Holdings Inc.1 66,751,466 693,236
Temenos AG 2,956,524 479,599
Just Eat PLC1,2 54,396,000 475,170
Baidu, Inc., Class A (ADR)2 2,008,000 459,189
PagSeguro Digital Ltd., Class A2 15,583,238 431,188
Tokyo Electron Ltd. 3,080,000 423,154
SAP SE 3,380,000 415,981
Worldpay, Inc., Class A (GBP denominated)2 4,020,941 405,540
Largan Precision Co., Ltd. 3,210,000 382,155
Xiaomi Corp., Class B2 181,029,800 358,436
Hangzhou Hikvision Digital Technology Co., Ltd., Class A 82,680,131 345,352
Hexagon AB, Class B 4,267,000 250,141
Halma PLC 11,480,157 216,219
TDK Corp. 1,479,000 161,282
Hamamatsu Photonics KK 3,881,000 154,564
TravelSky Technology Ltd., Class H 48,723,000 126,657
Infineon Technologies AG 5,573,000 126,628
OMRON Corp. 2,904,000 122,683
Renesas Electronics Corp.2 10,382,000 64,876
    29,180,433
Financials 16.08%    
AIA Group Ltd. 458,204,600 4,091,348
HDFC Bank Ltd. 107,036,464 2,962,071
HDFC Bank Ltd. (ADR) 7,727,242 727,133
Prudential PLC 80,687,038 1,850,422
Kotak Mahindra Bank Ltd. 94,161,246 1,482,887
China Construction Bank Corp., Class H 1,308,293,140 1,143,118
UniCredit SpA 64,889,564 976,708
Barclays PLC 433,700,647 971,047
Housing Development Finance Corp. Ltd. 31,813,425 769,991
Sberbank of Russia PJSC (ADR) 59,071,716 749,029
Credit Suisse Group AG 43,429,553 652,727
DBS Group Holdings Ltd 31,495,000 601,079
EuroPacific Growth Fund — Page 1 of 9

unaudited
Common stocks
Financials (continued)
Shares Value
(000)
Axis Bank Ltd.2,3,4,5 42,872,967 $348,188
Axis Bank Ltd.2 26,164,890 221,350
PICC Property and Casualty Co. Ltd., Class H 424,863,869 501,478
BNP Paribas SA 8,140,854 498,212
B3 SA - Brasil, Bolsa, Balcao 79,420,000 460,172
Toronto-Dominion Bank (CAD denominated) 7,075,000 429,928
Bank Central Asia Tbk PT 246,600,000 399,650
Banco Santander, SA 79,163,098 398,486
Hana Financial Group Inc. 9,867,983 396,321
Agricultural Bank of China Ltd., Class H 804,473,000 394,614
State Bank of India2 103,069,000 377,498
Bank of Ireland Group PLC 46,851,951 362,831
Bank of China Ltd., Class H 769,867,555 342,235
Industrial and Commercial Bank of China Ltd., Class H 436,261,000 318,766
Fairfax Financial Holdings Ltd., subordinate voting (CAD denominated) 461,951 250,973
Fairfax Financial Holdings Ltd., subordinate voting 124,291 67,492
KB Financial Group Inc. 6,088,000 297,471
Société Générale 6,675,872 286,555
Itaú Unibanco Holding SA, preferred nominative (ADR) 25,730,000 282,515
ABN AMRO Group NV, depository receipts 8,460,361 230,347
Ayala Corp. 12,080,000 207,482
Zurich Insurance Group AG 640,500 202,449
Brookfield Asset Management Inc., Class A 4,400,000 195,932
3i Group PLC 11,950,000 146,598
Grupo Financiero Galicia SA, Class B (ADR) 5,723,050 145,537
ICICI Bank Ltd. 31,228,276 131,629
ICICI Bank Ltd. (ADR) 1,380,241 11,718
CaixaBank, SA 29,450,000 134,652
Banco BPM SpA2 53,338,284 131,474
Metropolitan Bank & Trust Co. 105,402,092 130,704
Shinhan Financial Group Co., Ltd. 3,182,000 129,087
Standard Life Aberdeen PLC 27,241,433 108,614
Capitec Bank Holdings Ltd. 1,470,000 106,471
Royal Bank of Canada 1,251,000 100,281
RSA Insurance Group PLC 12,067,706 90,442
Eurobank Ergasias SA2 108,860,228 82,028
Itaúsa - Investimentos Itaú SA, preferred nominative 30,175,228 75,465
Intesa Sanpaolo SpA 29,468,000 75,305
UBS Group AG 4,314,724 68,146
Haci Ömer Sabanci Holding AS 9,018,390 11,402
Grupo Financiero Banorte, SAB de CV, Series O 771,737 5,580
Aditya Birla Capital Ltd.2 290,833 460
    26,134,098
Consumer discretionary 11.85%    
Sony Corp. 41,187,000 2,525,160
LVMH Moët Hennessy-Louis Vuitton SE 4,654,000 1,645,914
Naspers Ltd., Class N 5,959,522 1,286,047
Galaxy Entertainment Group Ltd. 193,509,000 1,227,298
adidas AG 4,984,373 1,220,501
Industria de Diseño Textil, SA 33,358,628 1,011,267
Kering SA 1,182,800 634,048
Ryohin Keikaku Co., Ltd.1 1,942,000 577,712
Melco Resorts & Entertainment Ltd. (ADR)1 27,268,250 576,723
Hyundai Motor Co. 4,788,300 559,013
EuroPacific Growth Fund — Page 2 of 9

unaudited
Common stocks
Consumer discretionary (continued)
Shares Value
(000)
Paddy Power Betfair PLC1 6,407,222 $546,774
Nitori Holdings Co., Ltd. 3,669,000 526,196
ASOS PLC1,2 6,690,380 502,460
Sands China Ltd. 108,733,200 492,389
Altice USA, Inc., Class B1,3 17,722,035 321,478
Altice USA, Inc., Class A1 7,439,920 134,960
Accor SA 8,535,000 438,201
Suzuki Motor Corp. 7,343,000 420,597
Ctrip.com International, Ltd. (ADR)2 10,626,800 394,998
Hyundai Mobis Co., Ltd. 1,789,800 367,883
Luxottica Group SpA 5,400,068 366,906
Carnival Corp., units 4,850,000 309,284
Midea Group Co., Ltd., Class A3,6 46,380,936 271,655
Axel Springer SE 3,830,568 257,732
Altice Europe NV, Class A1,2 73,042,628 197,005
Altice Europe NV, Class B1,2 16,341,536 43,866
Hermès International 345,000 228,561
Kroton Educacional SA, ordinary nominative 76,757,900 216,672
B&M European Value Retail SA 37,835,751 190,751
Mahindra & Mahindra Ltd. 15,700,000 186,466
Merlin Entertainments PLC 35,160,000 183,493
William Hill PLC1 55,825,007 183,434
Samsonite International SA 47,820,400 177,150
Eicher Motors Ltd. 479,508 159,982
ITV PLC 74,661,277 153,609
ProSiebenSat.1 Media SE 4,482,200 116,415
Motherson Sumi Systems Ltd. 31,855,479 112,850
Wynn Macau, Ltd. 46,334,000 106,537
Valeo SA, non-registered shares 2,230,000 96,834
Toyota Motor Corp. 1,347,500 84,145
Li & Fung Ltd. 335,850,000 75,078
Maruti Suzuki India Ltd. 575,000 58,285
Techtronic Industries Co. Ltd. 5,972,000 38,143
Global Brands Group Holding Ltd.1,2 487,835,358 25,550
HUGO BOSS AG 246,134 18,953
    19,268,975
Industrials 9.79%    
Airbus SE, non-registered shares 30,095,627 3,780,083
Ryanair Holdings PLC (ADR)2 16,035,793 1,540,078
International Consolidated Airlines Group, SA (CDI)1 129,105,675 1,110,960
Rolls-Royce Holdings PLC2 61,465,533 791,047
Komatsu Ltd. 25,815,532 785,236
Yamato Holdings Co., Ltd.1 24,466,093 751,080
MTU Aero Engines AG1 3,021,362 680,894
SMC Corp. 2,088,300 668,285
Melrose Industries PLC1 254,711,746 663,651
Safran SA 3,693,000 517,532
Recruit Holdings Co., Ltd. 14,517,000 484,496
DCC PLC 4,784,045 434,304
Nidec Corp. 2,818,000 405,388
SK Holdings Co., Ltd. 1,351,955 349,796
KONE Oyj, Class B 6,411,000 342,550
Edenred SA 8,850,000 337,338
Schindler Holding AG, participation certificate 1,300,000 324,006
EuroPacific Growth Fund — Page 3 of 9

unaudited
Common stocks
Industrials (continued)
Shares Value
(000)
Schindler Holding AG 2,000 $483
Airports of Thailand PCL, foreign registered 159,136,000 322,307
Air France-KLM1,2 27,857,295 290,188
Jardine Matheson Holdings Ltd. 4,367,800 274,080
Thales 1,913,500 271,821
DSV A/S 2,565,000 233,222
Eiffage SA 1,538,000 171,712
Babcock International Group PLC 17,050,517 160,677
Rheinmetall AG 1,285,100 134,375
Geberit AG 132,000 61,225
Alliance Global Group, Inc.2 123,500,000 28,526
    15,915,340
Health care 7.91%    
Daiichi Sankyo Co., Ltd. 34,141,000 1,479,884
Novartis AG 14,653,000 1,260,152
Teva Pharmaceutical Industries Ltd. (ADR) 50,720,159 1,092,512
Shire PLC 17,399,046 1,048,513
Chugai Pharmaceutical Co., Ltd. 11,955,158 768,110
Koninklijke Philips NV 16,497,000 751,501
Essilor International SA 4,841,807 716,470
AstraZeneca PLC 9,213,000 716,050
CSL Ltd. 4,441,000 645,599
Fresenius SE & Co. KGaA 7,529,000 552,815
Sysmex Corp. 5,519,000 475,056
Grifols, SA, Class B, nonvoting preferred, non-registered shares 9,697,000 205,359
Grifols, SA, Class A, non-registered shares 6,401,000 180,298
Grifols, SA, Class B (ADR) 3,541,478 75,681
HOYA Corp. 6,644,951 394,767
Hikma Pharmaceuticals PLC1 15,323,773 369,501
BeiGene, Ltd. (ADR)2 1,828,239 314,859
GW Pharmaceuticals PLC (ADR)1,2 1,769,681 305,695
Fresenius Medical Care AG & Co. KGaA 2,398,000 246,624
Aier Eye Hospital Group Co., Ltd., Class A 48,271,868 226,255
Merck KGaA 1,968,500 203,412
Novo Nordisk A/S, Class B 4,313,500 203,086
Galapagos NV2 1,350,000 152,698
Roche Holding AG, nonvoting, non-registered shares 595,500 144,263
Straumann Holding AG 150,000 112,798
Bayer AG 1,055,043 93,722
Eurofins Scientific SE, non-registered shares 164,793 93,562
Hypera SA, ordinary nominative 4,229,700 29,870
    12,859,112
Materials 7.76%    
Vale SA, ordinary nominative (ADR) 108,837,642 1,615,150
Vale SA, ordinary nominative 41,823,278 619,497
Glencore PLC 291,941,000 1,262,171
Teck Resources Ltd., Class B 40,064,000 965,581
Asahi Kasei Corp. 56,801,142 861,366
Chr. Hansen Holding A/S1 7,314,000 742,457
Rio Tinto PLC 13,926,000 704,265
Koninklijke DSM NV 5,817,619 616,285
First Quantum Minerals Ltd.1 50,298,633 572,828
Akzo Nobel NV 6,034,051 564,250
EuroPacific Growth Fund — Page 4 of 9

unaudited
Common stocks
Materials (continued)
Shares Value
(000)
Sika AG 3,279,000 $477,450
CCL Industries Inc., Class B, nonvoting 8,200,000 369,608
Linde AG, non-registered shares 1,277,000 302,018
China Hongqiao Group Ltd. 379,214,500 251,894
Klabin SA, units 46,863,500 230,804
Air Liquide SA, non-registered shares 1,676,800 220,578
LafargeHolcim Ltd. 4,085,000 201,669
HeidelbergCement AG 2,375,684 185,688
Yara International ASA 3,632,000 178,370
UltraTech Cement Ltd. 3,164,000 177,206
Agnico Eagle Mines Ltd. 5,003,412 171,117
Ambuja Cements Ltd. 52,190,000 160,947
James Hardie Industries PLC (CDI) 10,587,000 160,403
Grasim Industries Ltd. 10,570,961 148,962
Norsk Hydro ASA 24,365,000 146,272
Evonik Industries AG 3,861,756 138,322
ArcelorMittal SA 3,772,000 117,370
Aluminum Corp. of China Ltd., Class H2 256,356,000 113,960
LG Chem, Ltd. 271,000 89,295
BASF SE 672,500 59,771
Hindalco Industries Ltd. 16,253,000 51,490
ACC Ltd. 2,340,000 50,110
Fortescue Metals Group Ltd. 15,584,000 44,158
Shin-Etsu Chemical Co., Ltd. 490,000 43,407
    12,614,719
Consumer staples 6.21%    
British American Tobacco PLC 43,821,950 2,047,378
Nestlé SA 13,549,399 1,129,623
Kao Corp. 13,251,200 1,069,939
Associated British Foods PLC 30,999,094 925,257
Pernod Ricard SA 5,010,610 822,022
Kirin Holdings Co., Ltd. 17,225,145 441,317
Thai Beverage PCL 813,189,000 404,498
Uni-Charm Corp. 11,385,000 376,561
Meiji Holdings Co., Ltd. 4,532,000 304,340
Alimentation Couche-Tard Inc., Class B 5,542,500 277,243
Treasury Wine Estates Ltd. 19,164,734 242,293
AMOREPACIFIC Corp. 1,025,568 241,310
KOSÉ Corp. 1,040,700 198,303
Coca-Cola European Partners plc 4,291,645 195,141
Wal-Mart de México, SAB de CV, Series V 60,390,436 184,037
CP ALL PCL, foreign registered 72,596,966 154,891
Glanbia PLC 8,752,977 150,814
JBS SA, ordinary nominative 63,871,204 148,348
LG Household & Health Care Ltd. 123,000 141,490
Philip Morris International Inc. 1,560,000 127,202
Coca-Cola HBC AG (CDI) 3,562,746 121,339
AMOREPACIFIC Group 1,423,653 119,745
Ambev SA 23,931,000 108,676
Fomento Económico Mexicano, SAB de CV 9,055,000 89,602
Japan Tobacco Inc. 2,455,000 64,087
    10,085,456
EuroPacific Growth Fund — Page 5 of 9

unaudited
Common stocks
Energy 5.53%
Shares Value
(000)
Reliance Industries Ltd. 203,091,942 $3,524,341
Royal Dutch Shell PLC, Class B 22,576,544 791,273
Royal Dutch Shell PLC, Class A (GBP denominated) 9,586,976 329,448
Royal Dutch Shell PLC, Class A (EUR denominated) 122,980 4,223
Canadian Natural Resources, Ltd. (CAD denominated) 17,887,225 584,401
Canadian Natural Resources, Ltd. 5,350,000 174,731
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) 29,120,000 351,479
Petróleo Brasileiro SA (Petrobras), preferred nominative (ADR) 26,840,000 280,746
Petróleo Brasileiro SA (Petrobras), preferred nominative 14,420,000 75,304
TOTAL SA 10,475,345 679,148
Oil Search Ltd.1 86,860,452 566,967
Enbridge Inc. (CAD denominated) 13,269,930 428,205
Cenovus Energy Inc. 32,768,000 329,037
Tourmaline Oil Corp.1 16,547,000 291,316
Suncor Energy Inc. 7,303,000 282,587
Seven Generations Energy Ltd., Class A2 15,152,900 180,664
Schlumberger Ltd. 1,909,700 116,339
    8,990,209
Utilities 2.34%    
Ørsted AS1 21,260,285 1,444,186
ENN Energy Holdings Ltd.1 77,627,000 674,298
China Gas Holdings Ltd. 208,024,600 588,597
Enel SpA 78,250,000 400,840
China Resources Gas Group Ltd. 72,961,000 296,845
ENGIE SA 13,460,000 197,925
Guangdong Investment Ltd. 76,500,000 135,833
Pampa Energía SA (ADR)2 2,085,000 64,739
    3,803,263
Telecommunication services 2.05%    
SoftBank Group Corp. 18,297,640 1,847,157
Nippon Telegraph and Telephone Corp. 13,880,000 626,933
China Unicom (Hong Kong) Ltd. 254,596,000 299,856
Advanced Info Service PCL, foreign registered 44,060,000 273,842
BT Group PLC 57,000,128 167,384
Intouch Holdings PCL, foreign registered 36,860,000 61,548
TalkTalk Telecom Group PLC 35,499,000 57,050
    3,333,770
Real estate 0.73%    
Ayala Land, Inc. 390,814,709 289,693
Ayala Land, Inc., preference shares2,3,6 481,283,600 802
Sun Hung Kai Properties Ltd. 19,603,083 285,469
Vonovia SE 4,921,229 240,436
Henderson Land Development Co. Ltd. 41,037,973 206,282
CK Asset Holdings Ltd. 21,523,164 161,526
    1,184,208
Miscellaneous 4.92%    
Other common stocks in initial period of acquisition   7,999,438
Total common stocks (cost: $111,328,455,000)   151,369,021
EuroPacific Growth Fund — Page 6 of 9

unaudited
Rights & warrants 0.08%
Miscellaneous 0.08%
Shares Value
(000)
Other rights & warrants in initial period of acquisition   $121,688
Total rights & warrants (cost: $138,006,000)   121,688
Bonds, notes & other debt instruments 0.03%
U.S. Treasury bonds & notes 0.03%
U.S. Treasury 0.03%
Principal amount
(000)
 
U.S. Treasury 1.125% 20197 $50,000 49,752
Total U.S. Treasury bonds & notes   49,752
Total bonds, notes & other debt instruments (cost: $49,775,000)   49,752
Short-term securities 6.58%    
American Honda Finance Corp. 2.23% due 11/6/2018 40,000 39,904
Apple Inc. 2.10%–2.16% due 10/2/2018–11/20/20185 127,400 127,187
Australia & New Zealand Banking Group, Ltd. 2.21% due 12/12/20185 120,000 119,434
Bank of Montreal 2.24%–2.25% due 11/7/2018–12/10/2018 225,000 224,092
Bank of Tokyo-Mitsubishi UFJ, Ltd. 2.24% due 10/10/2018 100,000 99,927
BNP Paribas, New York Branch 2.27% due 10/9/2018 50,000 49,967
CAFCO, LLC 2.25% due 11/28/20185 25,000 24,905
Canada Bill 2.12% due 11/26/2018 75,000 74,738
Canadian Imperial Holdings Inc. 2.25% due 10/10/2018 25,000 24,982
CHARTA, LLC 2.25% due 12/4/20185 25,000 24,894
Ciesco LLC 2.27% due 10/4/20185 20,000 19,993
Coca-Cola Co. 2.13% due 11/19/20185 50,000 49,840
Commonwealth Bank of Australia 2.23% due 12/7/20185 100,000 99,556
CPPIB Capital Inc. 2.15% due 11/21/2018 50,000 49,834
CRC Funding, LLC 2.25%–2.27% due 10/12/2018–11/26/20185 150,000 149,598
DBS Bank Ltd. 2.40% due 1/22/20195 21,800 21,630
ExxonMobil Corp. 2.02% due 10/2/2018 50,000 49,988
Fairway Finance Corp. 2.26% due 10/23/20185 25,000 24,962
Federal Farm Credit Banks 1.80% due 12/18/2018 26,200 26,073
Federal Home Loan Bank 1.92%–2.11% due 10/5/2018–12/5/2018 2,066,300 2,062,880
Freddie Mac 1.96%–1.98% due 10/18/2018–11/2/2018 275,000 274,654
Gotham Funding Corp. 2.29% due 11/16/20185 100,000 99,696
Hydro-Québec 2.12% due 11/27/20185 50,000 49,816
IBM Credit LLC 2.17% due 11/13/20185 40,000 39,887
ING (U.S.) Funding LLC 2.34% due 11/5/2018–11/6/2018 258,400 257,781
John Deere Financial Ltd. 2.02%–2.03% due 10/11/2018–10/16/20185 75,000 74,926
Kells Funding, LLC 2.23% due 10/5/2018 100,000 99,958
KfW 2.13%–2.19% due 10/16/2018–11/28/20185 128,500 128,160
Liberty Street Funding Corp. 2.27%–2.33% due 10/3/2018–10/4/20185 125,000 124,958
Mitsubishi UFJ Trust and Banking Corp. 2.25% due 12/4/20185 100,000 99,579
Mizuho Bank, Ltd. 2.26%–2.33% due 12/10/2018–12/28/20185 150,000 149,178
National Australia Bank Ltd. 2.05%–2.08% due 10/24/2018–11/9/20185 200,000 199,581
Nestlé Capital Corp. 2.22% due 10/15/20185 100,000 99,899
Nordea Bank AB 2.22%–2.33% due 12/4/2018–1/18/20195 167,000 166,048
Novartis Finance Corp. 2.00% due 10/2/20185 45,000 44,989
Old Line Funding, LLC 2.07%–2.25% due 10/22/2018–12/11/20185 120,000 119,663
Oversea-Chinese Banking Corp. Ltd. 2.25%–2.34% due 12/7/2018–1/11/20195 149,900 148,878
Pfizer Inc. 2.10% due 10/10/20185 50,000 49,964
Province of Alberta 2.23% due 10/1/20185 95,000 94,983
Province of Ontario 2.03% due 10/23/2018 100,000 99,850
EuroPacific Growth Fund — Page 7 of 9

unaudited
Short-term securities Principal amount
(000)
Value
(000)
Québec (Province of) 2.02%–2.13% due 10/12/2018–12/5/20185 $188,900 $188,399
Royal Bank of Canada 2.39% due 1/18/2019 25,000 24,810
Starbird Funding Corp. 2.30% due 10/11/20185 100,000 99,922
Sumitomo Mitsui Banking Corp. 2.14%–2.27% due 10/22/2018–11/6/20185 100,000 99,807
Svenska Handelsbanken Inc. 2.22% due 12/5/20185 100,000 99,581
Swedbank AB 2.19%–2.22% due 10/17/2018–11/29/2018 200,000 199,510
Thunder Bay Funding, LLC 2.10% due 11/8/20185 100,000 99,747
Toronto-Dominion Bank 2.09%–2.31% due 11/7/2018–12/18/20185 234,000 233,092
Total Capital Canada Ltd. 2.13%–2.22% due 10/16/2018–12/4/20185 222,700 222,095
Toyota Motor Credit Corp. 2.21%–2.22% due 10/5/2018–11/27/2018 100,000 99,794
U.S. Treasury Bills 1.55%–2.20% due 10/18/2018–3/28/2019 3,504,700 3,485,393
Unilever Capital Corp. 2.15%–2.18% due 10/1/2018–10/15/20185 52,100 52,073
Total short-term securities (cost: $10,693,340,000)   10,691,055
Total investment securities 99.81% (cost: $122,209,576,000)   162,231,516
Other assets less liabilities 0.19%   316,359
Net assets 100.00%   $162,547,875
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.
Forward currency contracts

Contract amount Counterparty Settlement
date
Unrealized
depreciation
at 9/30/2018
(000)
Purchases
(000)
Sales
(000)
USD358,852 GBP276,993 Goldman Sachs 10/12/2018 $(2,408)
USD106,289 INR7,775,000 Morgan Stanley 10/30/2018 (501)
USD68,353 INR5,000,000 JPMorgan Chase 11/6/2018 (266)
USD68,348 INR5,000,000 Citibank 11/6/2018 (271)
        $(3,446)
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 Represents an affiliated company as defined under the Investment Company Act of 1940.
2 Security did not produce income during the last 12 months.
3 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $1,166,754,000, which represented .72% of the net assets of the fund.
4 Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below.
5 Acquired in a transaction exempt from registration under Rule 144A or 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 $3,795,108,000, which represented 2.33% of the net assets of the fund.
6 Value determined using significant unobservable inputs.
7 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $6,532,000, which represented less than .01% of the net assets of the fund.
    
Private placement security Acquisition
date
Cost
(000)
Value
(000)
Percent
of net
assets
Axis Bank Ltd. 12/18/2017 $351,103 $348,188 .21%
    
EuroPacific Growth Fund — Page 8 of 9

unaudited
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
CDI = CREST Depository Interest
EUR = Euros
GBP = British pounds
INR = Indian rupees
USD/$ = U.S. dollars
Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.
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. Fund shares offered through American Funds Distributors, Inc.
All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.
© 2018 Capital Group. All rights reserved.
MFGEFPX-016-1118O-S66114 EuroPacific Growth Fund — Page 9 of 9

 

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

 

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

 

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

 

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

 

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

 

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

 

ITEM 10 – Submission of Matters to a Vote of Security Holders

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

 

ITEM 11 – Controls and Procedures

 

(a) 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.
   
(b) Effective May 28, 2018, the EuroPacific Growth Fund’s investment adviser implemented a new fixed income order management, trading, and compliance system.  In connection with introducing this new system, additional automated and manual controls were implemented and some existing controls were modified.  None of these changes were in response to any identified deficiency or weakness in the EuroPacific Growth Fund’s internal control over financial reporting.

 

ITEM 12 – Exhibits

 

(a)(1) Not applicable for filing of semi-annual reports to shareholders.
   
(a)(2) 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.

 

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.

 

  EUROPACIFIC GROWTH FUND
   
  By /s/ Walter R. Burkley
 

Walter R. Burkley, Executive Vice President and

Principal Executive Officer

   
  Date: November 30, 2018

 

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/ Walter R. Burkley

Walter R. Burkley, Executive Vice President and

Principal Executive Officer

 
Date: November 30, 2018

 

 

 

By /s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

 
Date: November 30, 2018