0000925950-19-000126.txt : 20191129 0000925950-19-000126.hdr.sgml : 20191129 20191129112603 ACCESSION NUMBER: 0000925950-19-000126 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191129 DATE AS OF CHANGE: 20191129 EFFECTIVENESS DATE: 20191129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EUROPACIFIC GROWTH FUND CENTRAL INDEX KEY: 0000719603 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03734 FILM NUMBER: 191260314 BUSINESS ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 213-486-9200 MAIL ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 0000719603 S000009618 EUROPACIFIC GROWTH FUND C000026328 Class A AEPGX C000026329 Class R-1 RERAX C000026330 Class R-2 RERBX C000026331 Class R-3 RERCX C000026332 Class R-4 REREX C000026333 Class R-5 RERFX C000026335 Class C AEPCX C000026336 Class F-1 AEGFX C000026337 Class 529-A CEUAX C000026339 Class 529-C CEUCX C000026340 Class 529-E CEUEX C000026341 Class 529-F-1 CEUFX C000066830 Class F-2 AEPFX C000077411 Class R-6 RERGX C000148435 Class R-2E REEBX C000164824 Class R-5E RERHX C000179990 Class F-3 FEUPX C000189494 Class 529-T TEUGX C000189495 Class T TEUPX N-CSRS 1 eupac_ncsr.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: (949) 975-5000

 

Date of fiscal year end: March 31

 

Date of reporting period: September 30, 2019

 

Brian C. Janssen

EuroPacific Growth Fund

6455 Irvine Center Drive

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, 2019

 

Tap into the growth
potential of
international equities

 

Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Capital Group website (capitalgroup.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).

 

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.

 

 

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 capitalgroup.com.

 

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2019:

 

Class A shares   1 year   5 years   10 years
             
Reflecting 5.75% maximum sales charge   –5.02%   3.42%   5.08%

 

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

 

The total annual fund operating expense ratio is 0.83% for Class A shares as of the prospectus dated June 1, 2019.

 

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 capitalgroup.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:

 

In a six-month span marked by rising U.S.-China trade tensions, EuroPacific Growth Fund generated solid returns and exceeded its primary benchmark for the period ended September 30, 2019.

 

The fund gained 2.04% for shareholders who reinvested dividends and capital gains. This result surpassed the 1.13% increase 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 outpaced its peer group, as well, reflected by the Lipper International Funds Average, which rose 1.75% during the six-month period. The fund lagged the return of the MSCI EAFE (Europe, Australasia, Far East) Index, which advanced 2.57%. Over longer 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, 2019, 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)     2.04 %     0.78 %     4.65 %     5.70 %     10.38 %
MSCI ACWI (All Country World Index) ex USA1,2     1.13       –1.23       2.90       4.45       8.42  
MSCI EAFE (Europe, Australasia, Far East) Index1,3     2.57       –1.34       3.27       4.90       8.01  
Lipper International Funds Average4     1.75       –2.42       2.94       4.81       8.41  

 

1 The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Source: MSCI.
2 From April 16, 1984, through December 31, 1987, the MSCI EAFE (Europe, Australasia, Far East) Index was used because the MSCI ACWI (All Country World Index) ex USA did not yet exist. Since January 1, 1988, the MSCI ACWI ex USA has been used. The MSCI EAFE Index reflects dividends net of withholding taxes. The MSCI ACWI ex USA reflects dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter.
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
 

Markets rise despite trade tensions

International equity markets advanced during the April-to-September period in the face of an escalating trade war between the U.S. and China. Investor sentiment fluctuated sharply based on indications of progress or setbacks in U.S.-China trade negotiations. Shifting monetary policy also played a significant role. After raising interest rates in the fourth quarter of 2018, the U.S. Federal Reserve reversed course in July 2019 and cut rates for the first time in a decade. The European Central Bank and many others around the world did the same, slashing rates amid worsening trade disputes and signs of a weakening global economy.

 

European stocks rose despite sluggish economic growth and political turmoil in several countries. In July, U.K. Prime Minister Theresa May resigned after British lawmakers couldn’t agree on a plan to exit the European Union. Meanwhile, Germany teetered on the verge of recession as its export-oriented economy suffered from trade disruptions. Japanese stocks advanced as higher consumer spending helped to offset weak manufacturing activity. China’s slowing economy weighed on world markets, particularly emerging markets stocks. U.S. markets enjoyed some of the strongest gains, hitting a series of record highs over the summer.

 

Most sectors rise

Most sectors within the ACWI ex USA index rose for the six-month period, led by a 6.29% gain in the information technology sector. Semiconductor and semiconductor equipment stocks rose sharply, rebounding from a tough 2018. The successful launch of Apple’s new iPhone 11 helped to boost the companies involved in the mobile-device global supply chain. Consumer staples and utilities stocks also enjoyed significant gains as some investors rotated into more defensive-oriented, dividend-paying stocks, given widespread indications of weakening global economic growth.

 

Real estate stocks declined, weighed down by regional challenges at property companies in Germany and China. Energy and materials stocks also fell as investor worries about the health of the global economy sent oil and other commodities prices lower. Communication services stocks fell, hurt by sliding share prices among Chinese gaming companies. The financials sector was essentially flat as bank profitability was impaired by negative interest rates in Europe, Japan and elsewhere.

 

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
    (9/30/2019)   (3/31/2019)   (9/30/2019)
Europe                        
Eurozone3     21.4 %     20.2 %     21.5 %
United Kingdom     7.8       9.2       11.0  
Switzerland     3.6       3.6       6.3  
Denmark     2.0       1.9       1.2  
Russian Federation     .6       .5       1.0  
Other Europe     .6       .4       2.8  
      36.0       35.8       43.8  
                         
Pacific Basin                        
Japan     14.0       12.7       16.4  
China     8.4       9.6       8.3  
Hong Kong     4.8       5.7       2.4  
South Korea     3.5       4.3       3.2  
Canada     3.3       3.8       7.0  
United States     2.0       2.2        
Taiwan     1.7       1.9       3.0  
Australia     1.3       1.1       4.7  
Thailand     .8       .9       .8  
Philippines     .4       .5       .3  
Other Pacific Basin     1.1       1.0       3.1  
      41.3       43.7       49.2  
                         
Other                        
India     8.5       8.6       2.2  
Brazil     4.8       4.2       2.0  
South Africa     .5       .7       1.2  
Israel     .3       .5       .4  
Other countries           .2       1.2  
      14.1       14.2       7.0  
                         
Short-term securities & other assets less liabilities     8.6       6.3        
                         
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, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

 

EuroPacific Growth Fund 3
 

Inside the portfolio

Select investments in the communication services sector boosted returns relative to the fund’s primary benchmark. Nintendo shares rallied on the Japanese gaming giant’s announcement that it had secured a deal to sell the Switch console in China. Information technology stocks contributed positively to results, led by strong returns from Dutch semiconductor equipment maker ASML. Shares of ASML rallied on the increasing use of its cutting-edge EUV lithography technology to create advanced microchips. Elsewhere in the sector, shares of PagSeguro Digital and Taiwan Semiconductor Manufacturing rose significantly.

 

Investments in the health care and financials sectors also lifted the fund’s returns. Daiichi Sankyo shares rallied on strong quarterly earnings and investor optimism for its oncology drug pipeline. Among financials stocks, shares of Kotak Mahindra advanced as the Indian bank continued to enjoy a rapidly growing customer base and an expanding loan book. In the consumer discretionary sector, Chinese e-commerce firm Meituan Dianping rose sharply on the soaring popularity of its food delivery services.

 

Stocks in the materials industry were among the largest detractors amid a broad decline in commodities prices and other setbacks. Shares of Brazilian mining giant Vale declined in the aftermath of a fatal dam collapse. Shares of Canadian miner Teck Resources fell on lower copper and zinc prices, in part due to less demand from China. Among drug companies, shares of Teva Pharmaceuticals fell sharply due to rising competition in generic drug markets and lawsuits stemming from the opioid crisis. Elsewhere in the portfolio, Alibaba and Yamato Holdings were also among the biggest detractors.

 

Looking ahead

International equity markets have remained resilient this year in the face of daunting circumstances, including trade uncertainty, rising political risk and slowing economic growth in key regions of the world. Moving into 2020, we expect a challenging investment environment to be further strained by a contentious U.S. presidential election. Given these events, we are cautious about the outlook for 2020. However, we remain optimistic about the specific companies we have chosen for this portfolio through fundamental, bottom-up security selection. We believe our long-term investment horizon provides a powerful advantage, allowing us to invest through difficult markets and find attractively priced companies that we think will do well over many years.

 

4 EuroPacific Growth Fund
 

From a macroeconomic perspective, accommodative monetary policy around the world should help provide some boost to global economic growth. Low interest rates and other stimulus measures are supportive of higher valuations in the equity markets. We are also encouraged by initial signs of a limited trade truce between the U.S. and China, and we are hopeful that damaging tariffs and other trade restrictions can be meaningfully reduced in the years ahead since they have clearly taken a toll on the global economy.

 

We thank you for your commitment to the EuroPacific Growth Fund, and we look forward to reporting to you again in six months.

 

Sincerely,

 

 

Carl Kawaja
Co-President

 

 

Christopher Thomsen
Co-President

 

November 11, 2019

 

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

 

EuroPacific Growth Fund 5
 
Summary investment portfolio September 30, 2019 unaudited

 

Industry sector diversification Percent of net assets

 

 

Country diversification by domicile   Percent of
net assets
Eurozone*     21.43
Japan     14.04  
India     8.47  
China     8.44  
United Kingdom     7.81  
Brazil     4.77  
Hong Kong     4.75  
Switzerland     3.64  
South Korea     3.51  
Other countries     14.57  
Short-term securities & other assets less liabilities     8.57  
* 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 89.91%   Shares     Value
(000)
 
Financials 15.57%                
HDFC Bank Ltd.     211,861,504     $ 3,669,449  
HDFC Bank Ltd. (ADR)     12,206,296       696,369  
AIA Group Ltd.     429,917,600       4,061,829  
Kotak Mahindra Bank Ltd.     94,883,478       2,201,690  
Prudential PLC     55,816,599       1,012,282  
B3 SA - Brasil, Bolsa, Balcao     87,375,000       917,501  
London Stock Exchange Group PLC     9,464,216       850,412  
Barclays PLC     418,872,724       774,598  
Sberbank of Russia PJSC (ADR)     53,567,881       759,325  
Other securities             9,733,534  
              24,676,989  
                 
Consumer discretionary 13.54%                
Alibaba Group Holding Ltd. (ADR)1     20,114,042       3,363,671  
MercadoLibre, Inc.1,2     3,570,301       1,968,057  
LVMH Moët Hennessy-Louis Vuitton SE     4,623,547       1,837,630  
adidas AG     4,334,468       1,349,512  
Galaxy Entertainment Group Ltd.     211,181,000       1,313,532  

 

6 EuroPacific Growth Fund
 
    Shares     Value
(000)
 
Sony Corp.     19,034,500     $ 1,117,336  
EssilorLuxottica     7,329,559       1,056,526  
Meituan Dianping, Class B1     81,882,758       836,828  
Other securities             8,608,570  
              21,451,662  
                 
Information technology 13.05%                
ASML Holding NV     12,454,648       3,084,906  
Samsung Electronics Co., Ltd.     62,352,400       2,556,858  
Taiwan Semiconductor Manufacturing Co., Ltd.3     232,275,329       2,034,175  
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)     8,225,369       382,315  
SK hynix, Inc.     26,363,000       1,811,678  
Keyence Corp.     2,915,200       1,803,717  
PagSeguro Digital Ltd., Class A1,2     26,160,112       1,211,475  
Amadeus IT Group SA, Class A, non-registered shares     15,703,586       1,124,872  
SAP SE     9,335,503       1,097,704  
Tokyo Electron Ltd.     3,724,000       708,292  
Other securities             4,868,838  
              20,684,830  
                 
Industrials 11.25%                
Airbus SE, non-registered shares     31,874,875       4,141,249  
Recruit Holdings Co., Ltd.     54,320,101       1,650,829  
Safran SA     6,413,653       1,009,787  
Melrose Industries PLC2     339,320,636       841,099  
MTU Aero Engines AG2     2,850,916       757,573  
International Consolidated Airlines Group, SA (CDI)2     128,758,881       751,999  
Other securities             8,681,500  
              17,834,036  
                 
Health care 8.94%                
Daiichi Sankyo Co., Ltd.2     39,235,300       2,468,966  
Novartis AG     20,069,961       1,740,248  
AstraZeneca PLC     12,344,525       1,102,090  
Chugai Pharmaceutical Co., Ltd.     13,039,758       1,013,031  
Koninklijke Philips NV     17,999,428       833,785  
Takeda Pharmaceutical Co. Ltd.     21,638,353       738,456  
Alcon Inc.1     11,532,569       672,507  
CSL Ltd.     4,147,828       654,233  
Other securities             4,949,967  
              14,173,283  
                 
Materials 7.47%                
Vale SA, ordinary nominative (ADR)     183,692,520       2,112,464  
Vale SA, ordinary nominative     53,432,374       614,062  
Koninklijke DSM NV     7,680,931       924,250  
Sika AG     5,370,054       785,560  
Asahi Kasei Corp.2     77,119,742       758,894  
Teck Resources Ltd., Class B     42,345,128       686,548  
Other securities             5,954,732  
              11,836,510  

 

EuroPacific Growth Fund 7
 
Common stocks (continued)   Shares     Value
(000)
 
Consumer staples 5.48%                
Nestlé SA     12,265,366     $ 1,330,689  
Kweichow Moutai Co., Ltd., Class A     5,335,275       859,516  
Pernod Ricard SA     4,392,773       782,343  
British American Tobacco PLC     19,516,434       721,693  
Other securities             4,997,601  
              8,691,842  
                 
Energy 5.31%                
Reliance Industries Ltd.     200,935,942       3,777,359  
Cenovus Energy Inc. (CAD denominated)2     86,718,436       813,609  
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR)     53,126,910       768,746  
Canadian Natural Resources, Ltd. (CAD denominated)     23,434,108       623,506  
Canadian Natural Resources, Ltd.     4,330,337       115,317  
Other securities             2,315,474  
              8,414,011  
                 
Communication services 5.11%                
Nintendo Co., Ltd.2     10,331,826       3,824,089  
Tencent Holdings Ltd.     41,134,911       1,733,002  
SoftBank Group Corp.     27,200,100       1,066,621  
Other securities             1,477,797  
              8,101,509  
                 
Utilities 2.98%                
Ørsted AS     17,373,818       1,614,636  
China Gas Holdings Ltd.     207,466,600       802,051  
ENN Energy Holdings Ltd.2     72,941,000       754,751  
Other securities             1,552,089  
              4,723,527  
                 
Real estate 1.21%                
Other securities             1,912,834  
                 
Total common stocks (cost: $102,273,546,000)             142,501,033  
                 
Preferred securities 1.37%                
Financials 0.45%                
Itaú Unibanco Holding SA, preferred nominative (ADR)     84,467,457       710,371  
                 
Consumer discretionary 0.42%                
Volkswagen AG, nonvoting preferred shares     3,886,532       661,090  
                 
Information technology 0.05%                
Samsung Electronics Co., Ltd., nonvoting preferred shares     2,440,000       80,575  
                 
Other 0.45%                
Other securities             718,047  
                 
Total preferred securities (cost: $1,963,177,000)             2,170,083  

 

8 EuroPacific Growth Fund
 
Rights & warrants 0.08%   Shares     Value
(000)
 
Health care 0.08%                
Other securities           $ 120,913  
                 
Total rights & warrants (cost: $83,560,000)             120,913  
                 
Bonds, notes & other debt instruments 0.07%   Principal amount
(000)
         
Other 0.07%                
Other securities             109,276  
                 
Total bonds, notes & other debt instruments (cost: $116,788,000)             109,276  
                 
Short-term securities 8.22%   Shares          
Money market investments 8.12%                
Capital Group Central Cash Fund 2.07%2,4     128,659,990       12,864,712  
                 
    Principal amount
(000)
         
Other short-term securities 0.10%                
Other securities             164,264  
                 
Total short-term securities (cost: $13,310,682,000)             13,028,976  
Total investment securities 99.65% (cost: $117,747,753,000)             157,930,281  
Other assets less liabilities 0.35%             557,414  
                 
Net assets 100.00%           $ 158,487,695  

 

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.

 

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities (with an aggregate value of $126,990,000, which represented .08% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. “Other securities” also includes securities which were pledged as collateral. The total value of pledged collateral was $1,836,000, which represented less than .01% of the net assets of the fund.

 

Forward currency contracts

 

Contract amount         Unrealized
appreciation
(depreciation)
 
Purchases
(000)
  Sales
(000)
  Counterparty   Settlement date at 9/30/2019
(000)
 
USD71,199   GBP57,139   Citibank   10/18/2019   $ 888  
USD82,509   INR5,925,000   HSBC Bank   10/18/2019     (929 )
USD40,614   INR2,925,000   JPMorgan Chase   10/21/2019     (562 )

 

EuroPacific Growth Fund 9
 

Forward currency contracts (continued)

 

Contract amount         Unrealized
appreciation
(depreciation)
 
Purchases
(000)
  Sales
(000)
  Counterparty   Settlement date at 9/30/2019
(000)
 
USD62,748   INR4,462,500   Citibank   10/29/2019   $ (13 )
USD125,826   GBP100,572   Citibank   11/6/2019     1,972  
                $ 1,356  

 

Investments in affiliates

 

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. 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 these holdings and related transactions during the six months ended September 30, 2019, appear below.

 

    Beginning
shares
    Additions     Reductions     Ending
shares
 
Common stocks 13.67%                                
Consumer discretionary 2.34%                                
MercadoLibre, Inc.1     3,424,500       155,000       9,199       3,570,301  
Melco Resorts & Entertainment Ltd. (ADR)     32,297,140       575,000       88,299       32,783,841  
Just Eat PLC1     54,396,000             8,115,650       46,280,350  
Ryohin Keikaku Co., Ltd.     2,164,000       16,380,900       343,900       18,201,000  
Takeaway.com NV1           3,176,472       8,532       3,167,940  
ASOS PLC1     5,897,884             1,400,497       4,497,387  
Galaxy Entertainment Group Ltd.5     224,749,000       17,726,000       31,294,000       211,181,000  
GVC Holdings PLC5     31,312,683             6,300,885       25,011,798  
Information technology 1.14%                                
PagSeguro Digital Ltd., Class A1     24,308,238       1,922,333       70,459       26,160,112  
Halma PLC     22,653,157       2,090,072       66,283       24,676,946  
Industrials 2.11%                                
Melrose Industries PLC     290,421,746       49,679,000       780,110       339,320,636  
MTU Aero Engines AG     3,144,000             293,084       2,850,916  
International Consolidated Airlines Group, SA (CDI)     129,105,675             346,794       128,758,881  
Rentokil Initial PLC     53,636,506       44,072,132       185,642       97,522,996  
DCC PLC     4,784,045       258,000       13,003       5,029,042  
Yamato Holdings Co., Ltd.3,5     25,518,093       178,692       25,696,785        
Health care 2.05%                                
Daiichi Sankyo Co., Ltd.     34,141,000       5,200,000       105,700       39,235,300  
Hikma Pharmaceuticals PLC     14,615,045             39,258       14,575,787  
Teva Pharmaceutical Industries Ltd. (ADR)1     52,991,159       3,000,000       150,399       55,840,760  
GW Pharmaceuticals PLC (ADR)1,5     1,816,499             1,295,403       521,096  
NMC Health PLC5     12,262,303             2,651,089       9,611,214  
Materials 1.16%                                
Asahi Kasei Corp.     76,292,742       1,032,000       205,000       77,119,742  
Chr. Hansen Holding A/S     7,314,000             19,646       7,294,354  
First Quantum Minerals Ltd.     54,022,483       1,128,000       148,141       55,002,342  
Consumer staples 0.37%                                
KOSÉ Corp.     1,048,500       2,409,700       5,900       3,452,300  

 

10 EuroPacific Growth Fund
 
    Beginning
shares
    Additions     Reductions     Ending
shares
 
Energy 0.93%                                
Cenovus Energy Inc. (CAD denominated)     69,818,000       17,134,000       233,564       86,718,436  
Oil Search Ltd.     94,187,800       4,920,000       266,216       98,841,584  
Tourmaline Oil Corp.     16,547,000             44,447       16,502,553  
Communication services 2.69%                                
Nintendo Co., Ltd.     9,070,426       1,289,200       27,800       10,331,826  
Altice Europe NV, Class A1     62,627,628       6,186,569       184,844       68,629,353  
Altice Europe NV, Class B1     14,777,869             39,695       14,738,174  
Utilities 0.88%                                
ENN Energy Holdings Ltd.     77,627,000             4,686,000       72,941,000  
China Resources Gas Group Ltd.     76,616,000       53,834,000       328,000       130,122,000  
Short-term securities 8.12%                                
Money market investments 8.12%                                
Capital Group Central Cash Fund 2.07%4     93,044,336       85,437,938       49,822,284       128,659,990  
                                 
    Net
realized
gain (loss)
(000)
    Net
unrealized
appreciation
(depreciation)
(000)
    Dividend
income
(000)
    Value of
affiliates at
9/30/2019
(000)
 
Common stocks 13.67%                                
Consumer discretionary 2.34%                                
MercadoLibre, Inc.1   $ 3,795     $ 133,444     $     $ 1,968,057  
Melco Resorts & Entertainment Ltd. (ADR)     904       (105,216 )     10,423       636,334  
Just Eat PLC1     (25,667 )     (63,043 )           380,233  
Ryohin Keikaku Co., Ltd.     (41,416 )     (99,787 )     3,233       339,696  
Takeaway.com NV1     150       (3,714 )           252,752  
ASOS PLC1     (24,225 )     (12,400 )           136,917  
Galaxy Entertainment Group Ltd.5     (25,514 )     (98,095 )     12,475        
GVC Holdings PLC5     (36,374 )     86,212       5,338        
                              3,713,989  
Information technology 1.14%                                
PagSeguro Digital Ltd., Class A1     1,719       422,688             1,211,475  
Halma PLC     1,040       56,879       2,962       598,032  
                              1,809,507  
Industrials 2.11%                                
Melrose Industries PLC     275       22,848       17,734       841,099  
MTU Aero Engines AG     15,917       108,260       10,089       757,573  
International Consolidated Airlines Group, SA (CDI)     1,013       (107,985 )     75,030       751,999  
Rentokil Initial PLC     156       79,934       3,689       560,936  
DCC PLC     129       3,321       5,655       438,778  
Yamato Holdings Co., Ltd.3,5     (247,256 )     (473 )            
                              3,350,385  
Health care 2.05%                                
Daiichi Sankyo Co., Ltd.     3,636       486,818       12,729       2,468,966  
Hikma Pharmaceuticals PLC     388       53,755       5,841       394,276  
Teva Pharmaceutical Industries Ltd. (ADR)1     (979 )     (489,891 )           384,184  
GW Pharmaceuticals PLC (ADR)1,5     8,884       (74,231 )            
NMC Health PLC5     (37,264 )     78,302       2,213        
                              3,247,426  

 

EuroPacific Growth Fund 11
 

Investments in affiliates (continued)

 

    Net
realized
gain (loss)
(000)
    Net
unrealized
appreciation
(depreciation)
(000)
    Dividend
income
(000)
    Value of
affiliates at
9/30/2019
(000)
 
Materials 1.16%                                
Asahi Kasei Corp.   $ 834     $ (36,255 )   $ 12,867     $ 758,894  
Chr. Hansen Holding A/S     1,360       (121,829 )     6,901       619,119  
First Quantum Minerals Ltd.     1,057       (162,514 )     409       462,072  
                              1,840,085  
Consumer staples 0.37%                                
KOSÉ Corp.     339       (749 )     3,135       582,700  
Energy 0.93%                                
Cenovus Energy Inc. (CAD denominated)     426       37,936       6,545       813,609  
Oil Search Ltd.     66       (59,539 )     4,942       488,340  
Tourmaline Oil Corp.     (312 )     (91,354 )     2,987       163,300  
                              1,465,249  
Communication services 2.69%                                
Nintendo Co., Ltd.     8,030       797,623       32,855       3,824,089  
Altice Europe NV, Class A1     223       178,005             359,052  
Altice Europe NV, Class B1     (244 )     38,960             77,107  
                              4,260,248  
Utilities 0.88%                                
ENN Energy Holdings Ltd.     (4,374 )     54,117       11,106       754,751  
China Resources Gas Group Ltd.     855       28,594       11,588       643,330  
                              1,398,081  
Total common stocks                             21,667,670  
Short-term securities 8.12%                                
Money market investments 8.12%                                
Capital Group Central Cash Fund 2.07%4     (31 )     816       115,463       12,864,712  
Total 21.79%   $ (392,460 )   $ 1,141,437     $ 376,209     $ 34,532,382  

 

1 Security did not produce income during the last 12 months.
2 Represents an affiliated company as defined under the Investment Company Act of 1940.
3 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $2,455,582,000, which represented 1.55% of the net assets of the fund. This amount includes $36,239,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
4 Rate represents the seven-day yield at 9/30/2019.
5 Unaffiliated issuer at 9/30/2019.

 

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, 2019
unaudited
(dollars in thousands)
   
Assets:                
Investment securities, at value:                
Unaffiliated issuers (cost: $86,650,997)   $ 123,397,899          
Affiliated issuers (cost: $31,096,756)     34,532,382     $ 157,930,281  
Cash             22,136  
Cash denominated in currencies other than U.S. dollars (cost: $112,551)             112,555  
Unrealized appreciation on open forward currency contracts             2,860  
Receivables for:                
Sales of investments     712,869          
Sales of fund’s shares     431,537          
Dividends and interest     351,056          
Other     31,401       1,526,863  
              159,594,695  
Liabilities:                
Unrealized depreciation on open forward currency contracts             1,504  
Payables for:                
Purchases of investments     458,180          
Repurchases of fund’s shares     311,457          
Investment advisory services     53,850          
Services provided by related parties     17,620          
Trustees’ deferred compensation     4,091          
Non-U.S. taxes     256,748          
Other     3,550       1,105,496  
Net assets at September 30, 2019           $ 158,487,695  
                 
Net assets consist of:                
Capital paid in on shares of beneficial interest           $ 118,609,916  
Total distributable earnings             39,877,779  
Net assets at September 30, 2019           $ 158,487,695  

 

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 (3,056,469 total shares outstanding)

 

          Shares     Net asset value  
    Net assets     outstanding     per share  
Class A   $ 23,864,308       458,980     $ 51.99  
Class C     923,033       18,270       50.52  
Class T     10       *     52.03  
Class F-1     2,930,148       56,620       51.75  
Class F-2     24,605,332       474,431       51.86  
Class F-3     13,482,616       259,139       52.03  
Class 529-A     1,333,910       25,982       51.34  
Class 529-C     197,160       3,945       49.98  
Class 529-E     57,205       1,126       50.82  
Class 529-T     12       *     52.01  
Class 529-F-1     146,411       2,852       51.33  
Class R-1     196,567       3,957       49.67  
Class R-2     676,049       13,487       50.12  
Class R-2E     94,821       1,847       51.34  
Class R-3     3,202,953       63,048       50.80  
Class R-4     7,292,571       143,299       50.89  
Class R-5E     1,556,993       30,171       51.61  
Class R-5     7,611,865       146,592       51.93  
Class R-6     70,315,731       1,352,723       51.98  

 

* Amount less than one thousand.

 

See notes to financial statements.

 

14 EuroPacific Growth Fund
 
Statement of operations
for the six months ended September 30, 2019
unaudited
(dollars in thousands)

 

Investment income:                
Income:                
Dividends (net of non-U.S. taxes of $169,673; also includes $376,209 from affiliates)   $ 1,866,935          
Interest     92,565     $ 1,959,500  
Fees and expenses*:                
Investment advisory services     327,649          
Distribution services     62,553          
Transfer agent services     45,912          
Administrative services     29,132          
Reports to shareholders     2,124          
Registration statement and prospectus     1,975          
Trustees’ compensation     399          
Auditing and legal     204          
Custodian     15,659          
Other     657          
Total fees and expenses before reimbursements     486,264          
Less transfer agent services reimbursements     28          
Total fees and expenses after reimbursements             486,236  
Net investment income             1,473,264  
                 
Net realized gain and unrealized appreciation:                
Net realized gain (loss) on:                
Investments:                
Unaffiliated issuers     1,256,686          
Affiliated issuers     (392,460 )        
Forward currency contracts     16,222          
Currency transactions     (286 )     880,162  
Net unrealized (depreciation) appreciation on:                
Investments (net of non-U.S. taxes of $231,380):                
Unaffiliated issuers     (105,903 )        
Affiliated issuers     1,141,437          
Forward currency contracts     (117 )        
Currency translations     1,379       1,036,796  
Net realized gain and unrealized appreciation             1,916,958  
                 
Net increase in net assets resulting from operations           $ 3,390,222  

 

* 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     Year ended  
    September 30, 2019*     March 31, 2019  
Operations:                
Net investment income   $ 1,473,264     $ 2,434,145  
Net realized gain     880,162       353,327  
Net unrealized appreciation (depreciation)     1,036,796       (10,967,830 )
Net increase (decrease) in net assets resulting from operations     3,390,222       (8,180,358 )
                 
Distributions paid to shareholders     (197,437 )     (8,900,930 )
                 
Net capital share transactions     (1,210,691 )     6,917,067  
                 
Total increase (decrease) in net assets     1,982,094       (10,164,221 )
                 
Net assets:                
Beginning of period     156,505,601       166,669,822  
End of period   $ 158,487,695     $ 156,505,601  

 

* Unaudited.

 

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.

 

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.

 

EuroPacific Growth Fund 19
 

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. 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.

 

20 EuroPacific Growth Fund
 

The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

 

Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of September 30, 2019 (dollars in thousands):

 

    Investment securities  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Common stocks:                                
Financials   $ 24,676,989     $     $     $ 24,676,989  
Consumer discretionary     21,451,662                   21,451,662  
Information technology     18,350,997       2,333,833             20,684,830  
Industrials     17,834,036                   17,834,036  
Health care     14,173,283                   14,173,283  
Materials     11,836,510                   11,836,510  
Consumer staples     8,691,842                   8,691,842  
Energy     8,414,011                   8,414,011  
Communication services     8,101,509                   8,101,509  
Utilities     4,723,527                   4,723,527  
Real estate     1,912,834                   1,912,834  
Preferred securities     2,169,247             836       2,170,083  
Rights & warrants           120,913             120,913  
Bonds, notes & other debt instruments           109,276             109,276  
Short-term securities     12,864,712       164,264             13,028,976  
Total   $ 155,201,159     $ 2,728,286     $ 836     $ 157,930,281  

 

EuroPacific Growth Fund 21
 
    Other investments*  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Unrealized appreciation on open forward currency contracts   $     $ 2,860     $     $ 2,860  
Liabilities:                                
Unrealized depreciation on open forward currency contracts           (1,504 )           (1,504 )
Total   $     $ 1,356     $     $ 1,356  

 

* Forward currency contracts are not included in the investment portfolio.

 

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, governmental agency or central bank 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, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment 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 nationalization, currency blockage or the imposition of price controls or punitive

 

22 EuroPacific Growth Fund
 

taxes, each of which 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, emerging market 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 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, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

 

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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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.

 

EuroPacific Growth Fund 23
 

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 $561,071,000.

 

The following tables identify the location and fair value amounts on the fund’s statement of assets and liabilities and the effect on the fund’s statement of operations resulting from the fund’s use of forward currency contracts as of, or for the six months ended, September 30, 2019 (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   $ 2,860     Unrealized depreciation on open forward currency contracts   $ 1,504  

 

        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   $ 16,222     Net unrealized depreciation on forward currency contracts   $ (117 )

 

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.

 

24 EuroPacific Growth Fund
 

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.

 

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, 2019, 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
 
Assets:                              
Citibank   $ 2,860     $ (13 )   $     $ (2,262 )   $ 585  
Total   $ 2,860     $ (13 )   $     $ (2,262 )   $ 585  
Liabilities:                                        
Citibank   $ 13     $ (13 )   $     $     $  
HSBC Bank     929             (929 )            
JPMorgan Chase     562             (562 )            
Total   $ 1,504     $ (13 )   $ (1,491 )   $     $  

 

* 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, 2019, 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.

 

EuroPacific Growth Fund 25
 

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.

 

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, 2019, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

 

Undistributed ordinary income   $ 197,377  
Post-October capital loss deferral*     (1,321,161 )

 

* This deferral is considered incurred in the subsequent year.

 

As of September 30, 2019, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Gross unrealized appreciation on investments   $ 45,706,749  
Gross unrealized depreciation on investments     (6,807,454 )
Net unrealized appreciation on investments     38,899,295  
Cost of investments     119,032,342  

 

26 EuroPacific Growth Fund
 

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

 

    Six months ended September 30, 2019     Year ended March 31, 2019  
Share class   Ordinary
income
    Long-term
capital gains
    Total
distributions
paid
    Ordinary
income
    Long-term
capital gains
    Total
distributions
paid
 
Class A   $ 17,036     $     $ 17,036     $ 300,775     $ 1,127,603     $ 1,428,378  
Class C                       6,163       51,849       58,012  
Class T     *           *     *     *     *
Class F-1     2,022             2,022       35,862       161,250       197,112  
Class F-2     32,426             32,426       357,839       1,054,389       1,412,228  
Class F-3     19,447             19,447       168,391       423,728       592,119  
Class 529-A     822             822       15,928       61,112       77,040  
Class 529-C     (1 )           (1 )     1,305       10,802       12,107  
Class 529-E     5             5       617       2,818       3,435  
Class 529-T     *           *     *     *     *
Class 529-F-1     170             170       2,015       5,727       7,742  
Class R-1     *           *     1,368       10,489       11,857  
Class R-2     *           *     4,303       32,240       36,543  
Class R-2E                       227       8,663       8,890  
Class R-3     *           *     35,061       176,288       211,349  
Class R-4     5,279             5,279       102,828       402,073       504,901  
Class R-5E     1,876             1,876       20,731       38,416       59,147  
Class R-5     11,052             11,052       112,862       359,636       472,498  
Class R-6     107,303             107,303       1,027,207       2,780,365       3,807,572  
Total   $ 197,437     $     $ 197,437     $ 2,193,482     $ 6,707,448     $ 8,900,930  

 

* 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 daily net assets and decreasing to 0.392% on such assets in excess of $186 billion. For the six months ended September 30, 2019, the investment advisory services fee was $327,649,000, 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  

 

28 EuroPacific Growth Fund
 

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 expense limits are not exceeded. As of September 30, 2019, there were no unreimbursed expenses subject to reimbursement for Class A or 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 all share classes. Administrative services are provided by CRMC and its affiliates 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 provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the daily net assets attributable to each share class of the fund. Prior to July 1, 2019, Class A shares paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets and all other share classes paid a fee at the annual rate of 0.05% of their respective daily net assets. The fund’s board of trustees authorized the fund to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the average daily net assets attributable to each share class of the fund (which could increase as noted above) for CRMC’s provision of administrative services.

 

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, 2019, 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     $29,468       $16,689       $2,443       Not applicable  
Class C     4,814       613       196       Not applicable  
Class T           *     *     Not applicable  
Class F-1     3,919       2,040       632       Not applicable  
Class F-2     Not applicable       14,427       4,953       Not applicable  
Class F-3     Not applicable       196       2,513       Not applicable  
Class 529-A     1,551       738       275       $449  
Class 529-C     1,012       114       42       68  
Class 529-E     145       19       12       19  
Class 529-T           *     *     *
Class 529-F-1           79       29       48  
Class R-1     1,027       109       41       Not applicable  
Class R-2     2,567       1,170       137       Not applicable  
Class R-2E     282       93       19       Not applicable  
Class R-3     8,395       2,506       674       Not applicable  
Class R-4     9,373       3,757       1,503       Not applicable  
Class R-5E     Not applicable       1,137       308       Not applicable  
Class R-5     Not applicable       1,941       1,520       Not applicable  
Class R-6     Not applicable       284       13,835       Not applicable  
Total class-specific expenses     $62,553       $45,912       $29,132       $584  

 

  * Amount less than one thousand.

 

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 $399,000 in the fund’s statement of operations reflects $273,000 in current fees (either paid in cash or deferred) and a net increase of $126,000 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.

 

Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.

 

30 EuroPacific Growth Fund
 

Security transactions with related funds — The fund may purchase securities 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, 2019.

 

8. Capital share transactions

 

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

 

    Sales*     Reinvestments
of distributions
    Repurchases*     Net (decrease)
increase
 
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Six months ended September 30, 2019
                                                 
Class A   $ 546,109       10,552     $ 16,638       324     $ (1,885,158 )     (36,377 )   $ (1,322,411 )     (25,501 )
Class C     34,700       688                   (143,355 )     (2,846 )     (108,655 )     (2,158 )
Class T                                                
Class F-1     207,626       4,023       1,939       38       (571,377 )     (11,121 )     (361,812 )     (7,060 )
Class F-2     2,575,527       49,953       30,856       603       (3,093,375 )     (59,795 )     (486,992 )     (9,239 )
Class F-3     2,235,474       43,073       16,971       330       (1,009,167 )     (19,517 )     1,243,278       23,886  
Class 529-A     59,653       1,167       822       16       (129,083 )     (2,521 )     (68,608 )     (1,338 )
Class 529-C     8,993       181       (1 )         (33,864 )     (679 )     (24,872 )     (498 )
Class 529-E     2,383       47       5           (6,095 )     (120 )     (3,707 )     (73 )
Class 529-T                                        
Class 529-F-1     13,189       259       170       3       (15,334 )     (301 )     (1,975 )     (39 )
Class R-1     10,697       215               (26,586 )     (535 )     (15,889 )     (320 )
Class R-2     81,067       1,610               (106,710 )     (2,124 )     (25,643 )     (514 )
Class R-2E     14,506       282                   (9,890 )     (193 )     4,616       89  
Class R-3     219,909       4,333               (526,957 )     (10,404 )     (307,048 )     (6,071 )
Class R-4     554,311       10,921       5,278       105       (1,133,692 )     (22,316 )     (574,103 )     (11,290 )
Class R-5E     123,395       2,391       1,876       37       (109,381 )     (2,129 )     15,890       299  
Class R-5     994,136       19,183       11,041       216       (826,162 )     (15,947 )     179,015       3,452  
Class R-6     6,329,484       122,409       106,888       2,085       (5,788,147 )     (111,537 )     648,225       12,957  
Total net increase (decrease)   $ 14,011,159       271,287     $ 192,483       3,757     $ (15,414,333 )     (298,462 )   $ (1,210,691 )     (23,418 )

 

See end of table for footnotes.

 

EuroPacific Growth Fund 31
 
    Sales*     Reinvestments
of distributions
    Repurchases*     Net (decrease)
increase
 
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                                 
Year ended March 31, 2019
                                                 
Class A   $ 1,745,025       33,779     $ 1,400,728       27,795     $ (4,591,568 )     (90,056 )   $ (1,445,815 )     (28,482 )
Class C     131,659       2,589       57,361       1,146       (384,770 )     (7,703 )     (195,750 )     (3,968 )
Class T                                                
Class F-1     822,668       16,074       192,181       3,793       (1,772,096 )     (33,935 )     (757,247 )     (14,068 )
Class F-2     8,283,565       160,944       1,336,131       26,800       (8,105,462 )     (161,012 )     1,514,234       26,732  
Class F-3     5,778,865       112,229       541,201       10,866       (2,726,520 )     (54,975 )     3,593,546       68,120  
Class 529-A     148,848       2,915       77,005       1,548       (221,689 )     (4,386 )     4,164       77  
Class 529-C     27,200       546       12,102       245       (71,019 )     (1,425 )     (31,717 )     (634 )
Class 529-E     5,528       110       3,432       70       (12,673 )     (253 )     (3,713 )     (73 )
Class 529-T                 1                       1      
Class 529-F-1     42,297       838       7,738       157       (24,685 )     (492 )     25,350       503  
Class R-1     21,196       429       11,853       241       (60,088 )     (1,230 )     (27,039 )     (560 )
Class R-2     156,715       3,160       36,498       737       (238,880 )     (4,793 )     (45,667 )     (896 )
Class R-2E     52,852       1,018       8,890       168       (212,291 )     (3,979 )     (150,549 )     (2,793 )
Class R-3     650,346       12,821       211,068       4,245       (1,578,069 )     (31,422 )     (716,655 )     (14,356 )
Class R-4     1,531,980       30,328       504,822       10,214       (3,503,544 )     (71,071 )     (1,466,742 )     (30,529 )
Class R-5E     1,264,628       24,306       59,150       1,241       (310,842 )     (6,387 )     1,012,936       19,160  
Class R-5     1,999,574       38,294       472,082       9,375       (3,227,419 )     (62,636 )     (755,763 )     (14,967 )
Class R-6     14,811,246       288,387       3,793,726       76,102       (12,241,479 )     (239,135 )     6,363,493       125,354  
Total net increase (decrease)   $ 37,474,192       728,767     $ 8,725,969       174,743     $ (39,283,094 )     (774,890 )   $ 6,917,067       128,620  

 

* Includes exchanges between share classes of the fund.
Amount less than one thousand.

 

32 EuroPacific Growth Fund
 

9. Investment transactions

 

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $17,807,738,000 and $21,601,396,000, respectively, during the six months ended September 30, 2019.

 

EuroPacific Growth Fund 33
 

Financial highlights

 

          Income (loss) from investment operations1
    Net asset           Net gains (losses)        
    value,     Net     on securities (both     Total from  
    beginning     investment     realized and     investment  
Period ended   of period     income     unrealized)     operations  
Class A:                                
9/30/20194,5    $ 50.99     $ .43     $ .61     $ 1.04  
3/31/2019     56.66       .71       (3.52 )     (2.81 )
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  
Class C:                                
9/30/20194,5      49.70       .22       .60       .82  
3/31/2019     55.32       .31       (3.41 )     (3.10 )
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  
Class T:                                
9/30/20194,5      50.99       .49       .62       1.11  
3/31/2019     56.69       .83       (3.54 )     (2.71 )
3/31/20184,10      49.19       .58       9.63       10.21  
Class F-1:                                
9/30/20194,5      50.75       .42       .61       1.03  
3/31/2019     56.40       .74       (3.57 )     (2.83 )
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  
Class F-2:                                
9/30/20194,5      50.83       .49       .61       1.10  
3/31/2019     56.52       .82       (3.52 )     (2.70 )
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  
Class F-3:                                
9/30/20194,5      50.98       .51       .62       1.13  
3/31/2019     56.68       .82       (3.48 )     (2.66 )
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
return2
    Net assets,
end of period
(in millions)
    Ratio of
expenses
to average
net assets3
    Ratio of net
income
to average
net assets
 
                                             
$ (.04 )   $     $ (.04 )   $ 51.99       2.04 %6    $ 23,864       .84 %7      1.64 %7 
  (.62 )     (2.24 )     (2.86 )     50.99       (4.97 )     24,704       .83       1.37  
  (.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  
                                                             
                    50.52       1.65 6      923       1.59 7      .89 7 
  (.28 )     (2.24 )     (2.52 )     49.70       (5.70 )     1,015       1.60       .62  
  (.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  
                                                             
  (.07 )           (.07 )     52.03       2.18 6,8      9      .59 7,8      1.87 7,8 
  (.75 )     (2.24 )     (2.99 )     50.99       (4.76 )8      9      .59 8      1.60 8 
  (.58 )     (2.13 )     (2.71 )     56.69       21.27 6,8      9      .60 7,8      1.07 7,8 
                                                             
  (.03 )           (.03 )     51.75       2.04 6      2,930       .86 7      1.62 7 
  (.58 )     (2.24 )     (2.82 )     50.75       (5.01 )     3,232       .87       1.43  
  (.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  
                                                             
  (.07 )           (.07 )     51.86       2.16 6      24,605       .59 7      1.87 7 
  (.75 )     (2.24 )     (2.99 )     50.83       (4.75 )     24,585       .59       1.58  
  (.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  
                                                             
  (.08 )           (.08 )     52.03       2.22 6      13,483       .48 7      1.98 7 
  (.80 )     (2.24 )     (3.04 )     50.98       (4.65 )     11,993       .49       1.60  
  (.68 )     (2.13 )     (2.81 )     56.68       21.15       9,473       .49       1.06  
                    49.32       3.92 6      1,162       .09 6      .50 6 

 

See end of table for footnotes.

 

EuroPacific Growth Fund 35
 

Financial highlights (continued)

 

          Income (loss) from investment operations1
    Net asset           Net gains (losses)        
    value,     Net     on securities (both     Total from  
    beginning     investment     realized and     investment  
Period ended   of period     income     unrealized)     operations  
Class 529-A:                                
9/30/20194,5    $ 50.35     $ .41     $ .61     $ 1.02  
3/31/2019     56.00       .67       (3.49 )     (2.82 )
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  
Class 529-C:                                
9/30/20194,5      49.18       .21       .59       .80  
3/31/2019     54.79       .29       (3.38 )     (3.09 )
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  
Class 529-E:                                
9/30/20194,5      49.87       .35       .60       .95  
3/31/2019     55.50       .55       (3.44 )     (2.89 )
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  
Class 529-T:                                
9/30/20194,5      50.98       .47       .62       1.09  
3/31/2019     56.68       .79       (3.53 )     (2.74 )
3/31/20184,10      49.19       .56       9.62       10.18  
Class 529-F-1:                                
9/30/20194,5      50.32       .47       .60       1.07  
3/31/2019     55.99       .76       (3.47 )     (2.71 )
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  
Class R-1:                                
9/30/20194,5      48.86       .22       .59       .81  
3/31/2019     54.46       .31       (3.37 )     (3.06 )
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  

 

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
return2
    Net assets,
end of period
(in millions)
    Ratio of
expenses
to average
net assets3
    Ratio of net
income
to average
net assets
 
                                             
$ (.03 )   $     $ (.03 )   $ 51.34       2.03 %6    $ 1,334       .88 %7      1.60 %7 
  (.59 )     (2.24 )     (2.83 )     50.35       (5.04 )     1,376       .89       1.31  
  (.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  
                                                             
                    49.98       1.62 6      197       1.62 7      .86 7 
  (.28 )     (2.24 )     (2.52 )     49.18       (5.72 )     219       1.64       .59  
  (.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  
                                                             
  12            12      50.82       1.91 6      57       1.10 7      1.38 7 
  (.50 )     (2.24 )     (2.74 )     49.87       (5.24 )     60       1.11       1.09  
  (.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  
                                                             
  (.06 )           (.06 )     52.01       2.14 6,8      9      .64 7,8      1.82 7,8 
  (.72 )     (2.24 )     (2.96 )     50.98       (4.82 )8      9      .65 8      1.52 8 
  (.56 )     (2.13 )     (2.69 )     56.68       21.22 6,8      9      .64 7,8      1.03 7,8 
                                                             
  (.06 )           (.06 )     51.33       2.13 6      146       .65 7      1.82 7 
  (.72 )     (2.24 )     (2.96 )     50.32       (4.81 )     145       .66       1.50  
  (.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  
                                                             
                    49.67       1.66 6      197       1.58 7      .90 7 
  (.30 )     (2.24 )     (2.54 )     48.86       (5.71 )     209       1.60       .61  
  (.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  

 

See end of table for footnotes.

 

EuroPacific Growth Fund 37
 

Financial highlights (continued)

 

          Income (loss) from investment operations1
    Net asset           Net gains (losses)        
    value,     Net     on securities (both     Total from  
    beginning     investment     realized and     investment  
Period ended   of period     income     unrealized)     operations  
Class R-2:                                
9/30/20194,5    $ 49.30     $ .23     $ .59     $ .82  
3/31/2019     54.93       .31       (3.39 )     (3.08 )
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  
Class R-2E:                                
9/30/20194,5      50.42       .31       .61       .92  
3/31/2019     55.76       .77       (3.74 )     (2.97 )
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 )
3/31/20154,13      50.08       .10       .27       .37  
Class R-3:                                
9/30/20194,5      49.86       .34       .60       .94  
3/31/2019     55.48       .55       (3.45 )     (2.90 )
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  
Class R-4:                                
9/30/20194,5      49.91       .42       .60       1.02  
3/31/2019     55.52       .69       (3.46 )     (2.77 )
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  
Class R-5E:                                
9/30/20194,5      50.58       .47       .62       1.09  
3/31/2019     56.29       .62       (3.33 )     (2.71 )
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:                                
9/30/20194,5      50.88       .50       .62       1.12  
3/31/2019     56.57       .89       (3.57 )     (2.68 )
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  

 

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
return2
    Net assets,
end of period
(in millions)
    Ratio of
expenses
to average
net assets3
    Ratio of net
income
to average
net assets
 
                                                             
$     $     $     $ 50.12       1.66 %6    $ 676       1.57 %7      .90 %7 
  (.31 )     (2.24 )     (2.55 )     49.30       (5.71 )     690       1.60       .61  
  (.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  
                                                             
                    51.34       1.82 6      95       1.28 7      1.19 7 
  (.13 )     (2.24 )     (2.37 )     50.42       (5.46 )     89       1.31       1.47  
  (.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       .82 6      9      1.26 7      .28 7 
                                                             
                    50.80       1.88 6      3,203       1.13 7      1.35 7 
  (.48 )     (2.24 )     (2.72 )     49.86       (5.26 )     3,446       1.14       1.08  
  (.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  
                                                             
  (.04 )           (.04 )     50.89       2.03 6      7,293       .83 7      1.65 7 
  (.60 )     (2.24 )     (2.84 )     49.91       (4.99 )     7,715       .84       1.37  
  (.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  
                                                             
  (.06 )           (.06 )     51.61       2.16 6      1,557       .62 7      1.84 7 
  (.76 )     (2.24 )     (3.00 )     50.58       (4.78 )     1,511       .63       1.24  
  (.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      .25 6      .46 6 
                                                             
  (.07 )           (.07 )     51.93       2.21 6      7,612       .53 7      1.95 7 
  (.77 )     (2.24 )     (3.01 )     50.88       (4.71 )     7,283       .54       1.72  
  (.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  

 

See end of table for footnotes.

 

EuroPacific Growth Fund 39
 

Financial highlights (continued)

 

          Income (loss) from investment operations1
    Net asset           Net gains (losses)        
    value,     Net     on securities (both     Total from  
    beginning     investment     realized and     investment  
Period ended   of period     income     unrealized)     operations  
Class R-6:                                
9/30/20194,5    $ 50.93     $ .52     $ .61     $ 1.13  
3/31/2019     56.63       .86       (3.52 )     (2.66 )
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  
 
    Six months ended   Year ended March 31
    September 30, 20194,5,6   2019   2018   2017   2016   2015
Portfolio turnover rate for all share classes15      12 %     35 %     29 %     36 %     30 %     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
return2
    Net assets,
end of period
(in millions)
    Ratio of
expenses
to average
net assets3
    Ratio of net
income
to average
net assets
 
                                             
$ (.08 )   $     $ (.08 )   $ 51.98       2.22 %6    $ 70,316       .48 %7      1.99 %7 
  (.80 )     (2.24 )     (3.04 )     50.93       (4.66 )     68,234       .49       1.68  
  (.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  

 

1  Based on average shares outstanding.
2  Total returns exclude any applicable sales charges, including contingent deferred sales charges.
3  Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds.
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  Amount less than $.01.
13  Class R-2E shares began investment operations on August 29, 2014.
14  Class R-5E shares began investment operations on November 20, 2015.
15  Rates do not include the fund’s portfolio activity with respect to any Central Funds.

 

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, 2019, through September 30, 2019).

 

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
4/1/2019
    Ending
account value
9/30/2019
    Expenses paid
during period*
    Annualized
expense ratio
 
Class A – actual return   $ 1,000.00     $ 1,020.36     $ 4.25       .84 %
Class A – assumed 5% return     1,000.00       1,020.86       4.26       .84  
Class C – actual return     1,000.00       1,016.51       8.04       1.59  
Class C – assumed 5% return     1,000.00       1,017.10       8.04       1.59  
Class T – actual return     1,000.00       1,021.77       2.99       .59  
Class T – assumed 5% return     1,000.00       1,022.11       2.99       .59  
Class F-1 – actual return     1,000.00       1,020.35       4.36       .86  
Class F-1 – assumed 5% return     1,000.00       1,020.76       4.36       .86  
Class F-2 – actual return     1,000.00       1,021.59       2.99       .59  
Class F-2 – assumed 5% return     1,000.00       1,022.11       2.99       .59  
Class F-3 – actual return     1,000.00       1,022.23       2.43       .48  
Class F-3 – assumed 5% return     1,000.00       1,022.66       2.43       .48  
Class 529-A – actual return     1,000.00       1,020.28       4.46       .88  
Class 529-A – assumed 5% return     1,000.00       1,020.66       4.46       .88  
Class 529-C – actual return     1,000.00       1,016.24       8.19       1.62  
Class 529-C – assumed 5% return     1,000.00       1,016.95       8.19       1.62  
Class 529-E – actual return     1,000.00       1,019.14       5.57       1.10  
Class 529-E – assumed 5% return     1,000.00       1,019.55       5.57       1.10  
Class 529-T – actual return     1,000.00       1,021.42       3.24       .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       1,021.26       3.29       .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       1,016.60       7.99       1.58  
Class R-1 – assumed 5% return     1,000.00       1,017.15       7.99       1.58  
Class R-2 – actual return     1,000.00       1,016.63       7.94       1.57  
Class R-2 – assumed 5% return     1,000.00       1,017.20       7.94       1.57  
Class R-2E – actual return     1,000.00       1,018.23       6.48       1.28  
Class R-2E – assumed 5% return     1,000.00       1,018.65       6.48       1.28  
Class R-3 – actual return     1,000.00       1,018.84       5.72       1.13  
Class R-3 – assumed 5% return     1,000.00       1,019.40       5.72       1.13  
Class R-4 – actual return     1,000.00       1,020.34       4.20       .83  
Class R-4 – assumed 5% return     1,000.00       1,020.91       4.20       .83  
Class R-5E – actual return     1,000.00       1,021.62       3.14       .62  
Class R-5E – assumed 5% return     1,000.00       1,021.96       3.14       .62  
Class R-5 – actual return     1,000.00       1,022.14       2.69       .53  
Class R-5 – assumed 5% return     1,000.00       1,022.41       2.69       .53  
Class R-6 – actual return     1,000.00       1,022.24       2.43       .48  
Class R-6 – assumed 5% return     1,000.00       1,022.66       2.43       .48  

 

* 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
 

Office of the fund

333 South Hope Street
Los Angeles, CA 90071-1406

 

Investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

 

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 1000
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 Capital Group website at capitalgroup.com.

 

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on our 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 our website.

 

A complete September 30, 2019, 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-PORT-EX. 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, 2019, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 

MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

 

American Funds Distributors, Inc., member FINRA.

 

The Capital Advantage®

 

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

 

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 20 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 outcomes

Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods.2 Fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3 Fund management fees have been among the lowest in the industry.4

 

  1 Portfolio manager experience as of December 31, 2018.
  2 Based on Class F-2 share results for rolling periods through December 31, 2018. 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.
  3 Based on Class F-2 share results, as of December 31, 2018. Fourteen of our 15 American Funds fixed income funds that have been in existence for the three-year period showed a three-year correlation below 0.2. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction.
  4 On average, our management fees were in the lowest quintile 70% of the time, based on the 20-year period ended December 31, 2018, versus comparable Lipper categories, excluding funds of funds.
     
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 capitalgroup.com for more information on specific expense adjustments and the actual dates of first sale.
 
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

 

 

 

 

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, 2019

 

 

unaudited

 

 

Common stocks 89.91%
Financials 15.57%
Shares Value
(000)
HDFC Bank Ltd. 211,861,504 $3,669,449
HDFC Bank Ltd. (ADR) 12,206,296 696,369
AIA Group Ltd. 429,917,600 4,061,829
Kotak Mahindra Bank Ltd. 94,883,478 2,201,690
Prudential PLC 55,816,599 1,012,282
B3 SA - Brasil, Bolsa, Balcao 87,375,000 917,501
London Stock Exchange Group PLC 9,464,216 850,412
Barclays PLC 418,872,724 774,598
Sberbank of Russia PJSC (ADR) 53,567,881 759,325
Ping An Insurance (Group) Co. of China, Ltd., Class H 53,587,499 615,685
Ping An Insurance (Group) Co. of China, Ltd., Class A 8,178,157 99,718
DBS Group Holdings Ltd. 35,615,000 644,196
Brookfield Asset Management Inc., Class A 11,130,023 590,893
Axis Bank Ltd. 56,891,711 549,901
Housing Development Finance Corp. Ltd. 18,926,695 528,004
Bank Central Asia Tbk PT 244,850,000 523,508
PICC Property and Casualty Co. Ltd., Class H 423,721,869 494,667
ICICI Bank Ltd. 77,795,000 476,087
UniCredit SpA 36,169,728 426,559
IndusInd Bank Ltd. 20,150,894 393,400
Toronto-Dominion Bank (CAD denominated) 6,729,397 392,381
Deutsche Boerse AG 2,330,264 364,217
Agricultural Bank of China Ltd., Class H 662,316,000 259,427
FinecoBank SpA 24,039,406 254,471
Capitec Bank Holdings Ltd. 2,909,957 247,368
Zurich Insurance Group AG 638,780 244,491
The People’s Insurance Co. (Group) of China Ltd., Class H 576,766,215 231,069
3i Group PLC 11,917,901 170,935
Fairfax Financial Holdings Ltd., subordinate voting shares (CAD denominated) 250,326 110,345
Fairfax Financial Holdings Ltd., subordinate voting shares 123,957 54,662
Banco Santander, SA 39,199,422 159,643
BNP Paribas SA 3,198,882 155,747
Türkiye Garanti Bankasi AS1 73,165,938 132,287
Hong Kong Exchanges and Clearing Ltd. 4,232,200 124,195
Banco BPM SpA 59,907,284 122,365
Bank of China Ltd., Class H 302,585,000 118,908
BB Seguridade Participações SA 13,844,900 116,725
Sony Financial Holdings Inc. 5,272,300 114,199
Bank of Ireland Group PLC 27,778,022 110,510
Eurobank Ergasias SA1 108,567,816 105,080
Royal Bank of Canada 1,247,640 101,207
Metropolitan Bank & Trust Co. 72,865,122 96,160
Macquarie Group Ltd. 982,354 86,911
Société Générale 3,170,000 86,862
Hiscox Ltd. 4,044,516 82,551
KB Financial Group Inc. 1,891,600 67,526
Burford Capital Ltd. 6,522,433 66,082

 

EuroPacific Growth Fund — Page 1 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Financials (continued)
Shares Value
(000)
Credit Suisse Group AG 5,085,258 $62,340
Hargreaves Lansdown PLC 1,929,338 49,318
Akbank TAS1 32,412,701 46,607
BOC Hong Kong (Holdings) Ltd. 10,829,235 36,753
HDFC Life Insurance Co. Ltd. 2,307,527 19,574
    24,676,989
Consumer discretionary 13.54%    
Alibaba Group Holding Ltd. (ADR)1 20,114,042 3,363,671
MercadoLibre, Inc.1,2 3,570,301 1,968,057
LVMH Moët Hennessy-Louis Vuitton SE 4,623,547 1,837,630
adidas AG 4,334,468 1,349,512
Galaxy Entertainment Group Ltd. 211,181,000 1,313,532
Sony Corp. 19,034,500 1,117,336
EssilorLuxottica 7,329,559 1,056,526
Meituan Dianping, Class B1 81,882,758 836,828
Kering SA 1,282,266 653,451
Melco Resorts & Entertainment Ltd. (ADR)2 32,783,841 636,334
Industria de Diseño Textil, SA 18,631,818 576,740
Naspers Ltd., Class N 3,697,747 560,351
Sands China Ltd. 117,536,800 532,370
Hyundai Motor Co. 4,647,572 520,649
Nitori Holdings Co., Ltd. 3,012,700 440,516
Just Eat PLC1,2 46,280,350 380,233
Ryohin Keikaku Co., Ltd.2 18,201,000 339,696
Hermès International 461,661 319,021
Suzuki Motor Corp. 7,323,300 310,677
Rakuten, Inc. 31,146,900 306,788
Carnival Corp., units 6,612,662 289,039
Maruti Suzuki India Ltd. 3,036,840 287,783
Prosus NV1 3,839,259 281,833
Fast Retailing Co., Ltd. 455,800 270,677
Takeaway.com NV1,2 3,167,940 252,752
GVC Holdings PLC 25,011,798 228,620
Accor SA 5,224,927 217,830
Flutter Entertainment PLC 2,319,434 216,807
ASOS PLC1,2 4,497,387 136,917
Hyundai Mobis Co., Ltd. 547,600 115,366
Ctrip.com International, Ltd. (ADR)1 3,305,808 96,827
Eicher Motors Ltd. 384,086 96,282
Melco International Development Ltd. 39,585,000 94,143
Wynn Macau, Ltd. 46,209,600 90,206
Ferrari NV 573,000 88,404
Huazhu Group Ltd. (ADR) 2,496,647 82,439
Valeo SA, non-registered shares 2,224,010 72,116
William Hill PLC 24,423,219 56,350
Peugeot SA 1,862,934 46,458
Li & Fung Ltd. 55,698,000 6,325
Burberry Group PLC 92,743 2,479
HUGO BOSS AG 39,040 2,091
    21,451,662

 

EuroPacific Growth Fund — Page 2 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Information technology 13.05%
Shares Value
(000)
ASML Holding NV 12,454,648 $3,084,906
Samsung Electronics Co., Ltd. 62,352,400 2,556,858
Taiwan Semiconductor Manufacturing Co., Ltd.3 232,275,329 2,034,175
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) 8,225,369 382,315
SK hynix, Inc. 26,363,000 1,811,678
Keyence Corp. 2,915,200 1,803,717
PagSeguro Digital Ltd., Class A1,2 26,160,112 1,211,475
Amadeus IT Group SA, Class A, non-registered shares 15,703,586 1,124,872
SAP SE 9,335,503 1,097,704
Tokyo Electron Ltd. 3,724,000 708,292
Halma PLC2 24,676,946 598,032
Fidelity National Information Services, Inc. 3,724,217 494,427
Temenos AG 2,784,037 465,843
Capgemini SE 3,714,654 437,674
Worldline SA, non-registered shares1 6,919,350 436,667
Hexagon AB, Class B 6,737,775 324,841
Largan Precision Co., Ltd.3 1,840,000 263,419
WiseTech Global Ltd. 10,478,748 245,632
Xiaomi Corp., Class B1 174,055,600 195,426
Adyen NV1 239,355 157,679
Infosys Ltd. 13,425,000 152,618
Nice Ltd. (ADR)1 724,277 104,151
Nice Ltd.1,3 254,028 36,239
Murata Manufacturing Co., Ltd. 2,827,400 135,584
Infineon Technologies AG 6,694,968 120,491
OBIC Co., Ltd. 1,048,363 119,453
Shimadzu Corp. 4,271,300 107,765
TravelSky Technology Ltd., Class H 48,592,000 100,932
Hamamatsu Photonics KK 2,415,574 89,586
Nomura Research Institute, Ltd. 4,085,000 81,265
Hangzhou Hikvision Digital Technology Co., Ltd., Class A 17,699,965 80,089
STMicroelectronics NV 3,800,000 73,434
StoneCo Ltd., Class A1 1,368,345 47,591
    20,684,830
Industrials 11.25%    
Airbus SE, non-registered shares 31,874,875 4,141,249
Recruit Holdings Co., Ltd. 54,320,101 1,650,829
Safran SA 6,413,653 1,009,787
Melrose Industries PLC2 339,320,636 841,099
MTU Aero Engines AG2 2,850,916 757,573
International Consolidated Airlines Group, SA (CDI)2 128,758,881 751,999
Rolls-Royce Holdings PLC1 63,312,197 616,848
Komatsu Ltd. 26,681,332 610,740
DSV A/S 6,336,544 602,947
Rentokil Initial PLC2 97,522,996 560,936
SMC Corp. 1,280,100 545,781
Nidec Corp. 4,017,400 539,493
Edenred SA 10,047,937 482,205
DCC PLC2 5,029,042 438,778
Adani Ports & Special Economic Zone Ltd. 71,362,809 416,836
Knorr-Bremse AG, non-registered shares 3,946,662 370,976
Airports of Thailand PCL, foreign registered 145,308,600 355,135
Spirax-Sarco Engineering PLC 2,661,276 256,702
Rheinmetall AG 1,975,878 249,926

 

EuroPacific Growth Fund — Page 3 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Industrials (continued)
Shares Value
(000)
Experian PLC 7,674,601 $245,250
Thales SA 2,120,788 243,869
Jardine Matheson Holdings Ltd. 4,356,200 233,057
SK Holdings Co., Ltd. 1,351,955 230,572
Shanghai International Airport Co., Ltd., Class A 20,000,244 223,526
NIBE Industrier AB, Class B 13,953,735 176,972
CCR SA, ordinary nominative 39,721,300 164,910
Ayala Corp. 9,359,210 159,719
Kone OYJ, Class B 2,702,480 153,876
Eiffage SA 1,381,778 143,257
VINCI SA 1,277,577 137,606
Bunzl PLC 5,177,868 135,287
Aalberts NV, non-registered shares 2,941,045 116,555
Rational AG 144,051 103,312
DP World PLC 5,579,563 78,058
Kingspan Group PLC 885,293 43,229
Alliance Global Group, Inc. 123,500,000 25,972
Ryanair Holdings PLC (ADR)1 288,787 19,170
    17,834,036
Health care 8.94%    
Daiichi Sankyo Co., Ltd.2 39,235,300 2,468,966
Novartis AG 20,069,961 1,740,248
AstraZeneca PLC 12,344,525 1,102,090
Chugai Pharmaceutical Co., Ltd. 13,039,758 1,013,031
Koninklijke Philips NV 17,999,428 833,785
Takeda Pharmaceutical Co. Ltd. 21,638,353 738,456
Alcon Inc.1 11,532,569 672,507
CSL Ltd. 4,147,828 654,233
HOYA Corp. 6,949,051 566,785
Fresenius SE & Co. KGaA 11,378,354 531,977
Hikma Pharmaceuticals PLC2 14,575,787 394,277
Teva Pharmaceutical Industries Ltd. (ADR)1,2 55,840,760 384,184
Grifols, SA, Class A, non-registered shares 9,933,807 292,772
Grifols, SA, Class B (ADR) 3,531,965 70,780
NMC Health PLC 9,611,214 320,253
Aier Eye Hospital Group Co., Ltd., Class A 60,637,028 301,299
Bayer AG 3,160,531 222,845
Novo Nordisk A/S, Class B 4,301,913 221,158
Galapagos NV1 1,346,374 205,154
Asahi Intecc Co., Ltd. 7,621,000 199,961
Merck KGaA 1,680,786 189,334
Fresenius Medical Care AG & Co. KGaA 2,391,559 160,832
M3, Inc. 6,083,600 146,400
Coloplast A/S, Class B 1,037,053 124,901
Straumann Holding AG 149,597 122,280
Fisher & Paykel Healthcare Corp. Ltd. 9,834,709 106,542
WuXi Biologics (Cayman) Inc.1 10,301,847 105,152
bioMérieux SA 1,112,101 92,001
GW Pharmaceuticals PLC (ADR)1 521,096 59,942
Argenx SE (ADR)1 445,882 50,813
Hypera SA, ordinary nominative 4,986,500 40,241
Demant A/S1 1,564,953 40,084
    14,173,283

 

EuroPacific Growth Fund — Page 4 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Materials 7.47%
Shares Value
(000)
Vale SA, ordinary nominative (ADR) 183,692,520 $2,112,464
Vale SA, ordinary nominative 53,432,374 614,062
Koninklijke DSM NV 7,680,931 924,250
Sika AG 5,370,054 785,560
Asahi Kasei Corp.2 77,119,742 758,894
Teck Resources Ltd., Class B 42,345,128 686,548
Chr. Hansen Holding A/S2 7,294,354 619,119
Rio Tinto PLC 10,631,366 550,192
First Quantum Minerals Ltd.2 55,002,342 462,072
Shin-Etsu Chemical Co., Ltd. 4,096,400 437,960
ArcelorMittal SA 29,773,624 418,822
Akzo Nobel NV 3,920,153 349,470
CCL Industries Inc., Class B, nonvoting shares 8,177,974 329,872
Linde PLC (EUR denominated) 1,645,627 319,270
Linde PLC 42,486 8,230
Fortescue Metals Group Ltd. 47,580,687 282,608
Glencore PLC 91,717,974 276,009
Agnico Eagle Mines Ltd. 4,989,972 267,512
LafargeHolcim Ltd. 4,809,879 236,723
HeidelbergCement AG 2,663,510 192,533
Yara International ASA 3,622,244 155,996
Evonik Industries AG 6,303,778 155,624
CRH PLC 4,392,039 151,225
UltraTech Cement Ltd. 2,112,000 129,376
Indorama Ventures PCL, foreign registered 113,236,600 120,327
Barrick Gold Corp. 6,931,331 120,120
Givaudan SA 40,500 112,972
Aluminum Corp. of China Ltd., Class H1 255,668,000 80,572
BASF SE 1,013,770 70,850
MMG Ltd.1 268,572,554 63,394
Hindalco Industries Ltd. 16,253,000 43,884
    11,836,510
Consumer staples 5.48%    
Nestlé SA 12,265,366 1,330,689
Kweichow Moutai Co., Ltd., Class A 5,335,275 859,516
Pernod Ricard SA 4,392,773 782,343
British American Tobacco PLC 19,516,434 721,693
KOSÉ Corp.2 3,452,300 582,700
Thai Beverage PCL 765,139,800 489,924
JBS SA, ordinary nominative 54,094,704 426,904
Associated British Foods PLC 15,053,939 426,275
Kirin Holdings Co., Ltd. 19,298,745 408,375
Treasury Wine Estates Ltd. 27,899,590 349,688
Kao Corp. 4,574,800 337,805
Anheuser-Busch InBev SA/NV 3,351,840 319,375
CP ALL PCL, foreign registered 93,468,566 248,302
Uni-Charm Corp. 6,914,400 218,703
Coca-Cola European Partners PLC 3,598,000 199,509
Ambev SA 41,116,000 190,492
Alimentation Couche-Tard Inc., Class B 4,986,570 152,813
LG Household & Health Care Ltd. 123,000 134,399
Wal-Mart de México, SAB de CV, Series V 36,212,000 107,311
Coca-Cola HBC AG (CDI) 3,015,876 98,526
Philip Morris International Inc. 1,071,115 81,330

 

EuroPacific Growth Fund — Page 5 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Consumer staples (continued)
Shares Value
(000)
Shiseido Co., Ltd. 985,500 $78,649
Budweiser Brewing Co., APAC Ltd.1 21,000,000 75,628
Glanbia PLC 5,203,028 64,650
WH Group Ltd. 6,970,000 6,243
    8,691,842
Energy 5.31%    
Reliance Industries Ltd. 200,935,942 3,777,359
Cenovus Energy Inc. (CAD denominated)2 86,718,436 813,609
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) 53,126,910 768,746
Canadian Natural Resources, Ltd. (CAD denominated) 23,434,108 623,506
Canadian Natural Resources, Ltd. 4,330,337 115,317
Royal Dutch Shell PLC, Class B 11,054,771 325,674
Royal Dutch Shell PLC, Class A (GBP denominated) 10,488,726 307,450
Royal Dutch Shell PLC, Class A (EUR denominated) 122,650 3,596
Oil Search Ltd.2 98,841,584 488,340
TOTAL SA 6,490,637 338,761
Suncor Energy Inc. 6,146,525 193,881
Tourmaline Oil Corp.2 16,502,553 163,300
Ultrapar Participacoes SA, ordinary nominative 30,584,000 136,102
Saipem SpA, Class S1 28,172,263 127,493
BP PLC 14,494,708 91,926
Novatek PJSC (GDR) 393,992 79,902
CNOOC Ltd. 38,696,000 59,049
    8,414,011
Communication services 5.11%    
Nintendo Co., Ltd.2 10,331,826 3,824,089
Tencent Holdings Ltd. 41,134,911 1,733,002
SoftBank Group Corp. 27,200,100 1,066,621
Altice Europe NV, Class A1,2 68,629,353 359,052
Altice Europe NV, Class B1,2 14,738,174 77,107
United Internet AG 5,061,368 180,560
Cellnex Telecom, SA, non-registered shares 3,583,209 148,019
ITV PLC 92,234,482 142,779
Koninklijke KPN NV 36,377,176 113,437
América Móvil, SAB de CV, Series L (ADR) 5,858,041 87,050
América Móvil, SAB de CV, Series L 18,821,401 13,963
Nippon Telegraph and Telephone Corp. 1,644,500 78,419
Axel Springer SE1 960,481 65,953
LG Uplus Corp. 5,053,000 57,663
YY Inc., Class A (ADR)1 853,701 48,004
Yandex NV, Class A1 1,341,387 46,962
TalkTalk Telecom Group PLC 35,403,645 45,707
ProSiebenSat.1 Media SE 952,434 13,122
    8,101,509
Utilities 2.98%    
Ørsted AS 17,373,818 1,614,636
China Gas Holdings Ltd. 207,466,600 802,051
ENN Energy Holdings Ltd.2 72,941,000 754,751
China Resources Gas Group Ltd.2 130,122,000 643,330
Enel SpA 78,250,000 584,312

 

EuroPacific Growth Fund — Page 6 of 9

 


 

 

unaudited

 

 

Common stocks (continued)
Utilities (continued)
Shares Value
(000)
E.ON SE 18,014,480 $175,124
Guangdong Investment Ltd. 76,294,000 149,323
    4,723,527
Real estate 1.21%    
China Overseas Land & Investment Ltd. 198,932,000 625,652
Ayala Land, Inc. 390,814,709 372,869
Sun Hung Kai Properties Ltd. 13,402,583 192,890
Vonovia SE 3,350,000 169,969
Vinhomes JSC 33,474,875 128,844
Longfor Group Holdings Ltd. 34,199,500 127,849
CK Asset Holdings Ltd. 18,420,500 124,798
China Resources Land Ltd. 27,882,639 116,864
Central Pattana PCL, foreign registered 23,882,900 53,099
    1,912,834
Total common stocks (cost: $102,273,546,000)   142,501,033
Preferred securities 1.37%
Financials 0.45%
   
Itaú Unibanco Holding SA, preferred nominative (ADR) 84,467,457 710,371
Consumer discretionary 0.42%    
Volkswagen AG, nonvoting preferred shares 3,886,532 661,090
Health care 0.38%    
Sartorius AG, nonvoting preferred, non-registered shares 1,849,400 337,437
Grifols, SA, Class B, nonvoting preferred, non-registered shares 13,415,022 271,087
    608,524
Energy 0.07%    
Petróleo Brasileiro SA (Petrobras), preferred nominative (ADR) 8,271,482 108,687
Information technology 0.05%    
Samsung Electronics Co., Ltd., nonvoting preferred shares 2,440,000 80,575
Real estate 0.00%    
Ayala Land, Inc., preference shares1,3,4 481,283,600 836
Total preferred securities (cost: $1,963,177,000)   2,170,083
Rights & warrants 0.08%
Health care 0.08%
   
WuXi AppTec Co., Ltd., Class A, warrants, expire 20203,5 10,939,880 120,913
Total rights & warrants (cost: $83,560,000)   120,913

 

EuroPacific Growth Fund — Page 7 of 9

 


 

 

unaudited

 

 

Bonds, notes & other debt instruments 0.07%
U.S. Treasury bonds & notes 0.06%
U.S. Treasury 0.06%
Principal amount
(000)
Value
(000)
U.S. Treasury 1.50% 20196 $100,000 $99,969
Total U.S. Treasury bonds & notes   99,969
Corporate bonds & notes 0.01%
Financials 0.01%
   
UniCredit SpA 5.861% 20325,7 5,890 6,077
Total corporate bonds & notes   6,077
Bonds & notes of governments & government agencies outside the U.S. 0.00%    
Argentine Republic (Argentina Central Bank 7D Repo Reference Rate) 67.42% 20208 ARS115,723 857
Argentine Republic (Badlar Private Banks ARS Index + 2.00%) 52.006% 20228 305,565 2,373
    3,230
Total bonds, notes & other debt instruments (cost: $116,788,000)   109,276
Short-term securities 8.22%
Money market investments 8.12%
Shares  
Capital Group Central Cash Fund 2.07%2,9 128,659,990 12,864,712
Other short-term securities 0.10% Principal amount
(000)
 
Argentinian Treasury Bills (17.02%)–62.96% due 8/30/2019–7/31/202010 ARS15,288,341 164,264
Total short-term securities (cost: $13,310,682,000)   13,028,976
Total investment securities 99.65% (cost: $117,747,753,000)   157,930,281
Other assets less liabilities 0.35%   557,414
Net assets 100.00%   $158,487,695

Forward currency contracts


 

Contract amount Counterparty Settlement
date
Unrealized
appreciation
(depreciation)
at 9/30/2019
(000)
Purchases
(000)
Sales
(000)
USD71,199 GBP57,139 Citibank 10/18/2019 $888
USD82,509 INR5,925,000 HSBC Bank 10/18/2019 (929)
USD40,614 INR2,925,000 JPMorgan Chase 10/21/2019 (562)
USD62,748 INR4,462,500 Citibank 10/29/2019 (13)
USD125,826 GBP100,572 Citibank 11/6/2019 1,972
        $1,356

 

EuroPacific Growth Fund — Page 8 of 9

 


 

 

unaudited

 

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 Security did not produce income during the last 12 months.
2 Represents an affiliated company as defined under the Investment Company Act of 1940.
3 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $2,455,582,000, which represented 1.55% of the net assets of the fund. This amount includes $36,239,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
4 Value determined using significant unobservable inputs.
5 Acquired in a transaction exempt from registration under Rule 144A 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 $126,990,000, which represented .08% of the net assets of the fund.
6 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $1,836,000, which represented less than .01% of the net assets of the fund.
7 Step bond; coupon rate may change at a later date.
8 Coupon rate may change periodically.
9 Rate represents the seven-day yield at 9/30/2019.
10 Scheduled interest and/or principal payment was not received.

 

Key to abbreviations and symbol
ADR = American Depositary Receipts
ARS = Argentine pesos
CAD = Canadian dollars
CDI = CREST Depository Interest
EUR = Euros
GBP = British pounds
GDR = Global Depositary Receipts
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 Capital Group website at capitalgroup.com.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

American Funds Distributors, Inc., member FINRA.

© 2019 Capital Group. All rights reserved.

 

 

MFGEFPX-016-1119O-S73113 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)

There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’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 29, 2019

 

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 29, 2019

 

 

 

By ___/s/ Brian C. Janssen    __________

Brian C. Janssen, Treasurer and

Principal Financial Officer

 
Date: November 29, 2019

EX-99.CERT 2 eupac_cert302.htm CERT302

 

 

 

 

 

EuroPacific Growth Fund

333 South Hope Street

Los Angeles, California 90071

(949) 975-5000

 

CERTIFICATION

I, Walter R. Burkley, certify that:

 

1. I have reviewed this report on Form N-CSR of EuroPacific Growth Fund;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
   
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
   
  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
  c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 180 days prior to the filing date of this report based on such evaluation; and
   
  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):
   
  a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
   
  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: November 29, 2019

 

___/s/ Walter R. Burkley_____________________

Walter R. Burkley, Executive Vice President and

Principal Executive Officer

EuroPacific Growth Fund

 
 

 

 

 

 

 

 

EuroPacific Growth Fund

333 South Hope Street

Los Angeles, California 90071

(949) 975-5000

 

CERTIFICATION

I, Brian C. Janssen, certify that:

 

1. I have reviewed this report on Form N-CSR of EuroPacific Growth Fund;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
   
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
   
  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
  c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 180 days prior to the filing date of this report based on such evaluation; and
   
  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s semi-annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):
   
  a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
   
  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: November 29, 2019

 

__/s/ Brian C. Janssen____________

Brian C. Janssen, Treasurer and

Principal Financial Officer

EuroPacific Growth Fund

EX-99.906 CERT 3 eupac_cert906.htm CERT906

 

 

 

 

 

 

 

EuroPacific Growth Fund

333 South Hope Street

Los Angeles, California 90071

(949) 975-5000

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

WALTER R. BURKLEY, Executive Vice President and Principal Executive Officer, and BRIAN C. JANSSEN, Treasurer and Principal Financial Officer of EuroPacific Growth Fund (the "Registrant"), each certify to the best of her or his knowledge that:

 

1) The Registrant's periodic report on Form N-CSR for the period ended September 30, 2019 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
   
2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

 

Principal Executive Officer Principal Financial Officer
   
EUROPACIFIC GROWTH FUND EUROPACIFIC GROWTH FUND
   
   
___/s/ Walter R. Burkley____________ _/s/ Brian C. Janssen____________
Walter R. Burkley, Executive Vice President Brian C. Janssen, Treasurer
   
Date: November 29, 2019 Date: November 29, 2019

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to EUROPACIFIC GROWTH FUND and will be retained by EUROPACIFIC GROWTH FUND and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request.

 

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission.

 

 

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