SMALLCAP World Fund - SMCFX | American Funds

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GROWTH FUNDS

®

Share Class
Purchase Restrictions: Class F-2 shares are available through certain registered investment advisor and fee-based programs, but are not available for purchase in most employer-sponsored retirement plans. See the prospectus for details.

Summary

Dedicated to small companies. Focuses on bottom-up global investing in companies with market capitalizations up to $4.0 billion at the time of purchase.
Price at NAV $55.81 as of 09/22/2017 (updated daily)
Fund Assets (millions) $35,810.2
Portfolio Managers 14
Expense Ratio 0.82%

Returns at NAV

Returns With Sales Charge

N/A
1-year return
N/A
5-year return
N/A
10-year return
0.30%
30-Day SEC Yield Fund at NAV
Returns as of 8/31/17 (updated monthly). Yield as of 8/31/17 (updated monthly).

Asset Mix

U.S. Equities40.4%
Non-U.S. Equities51.0%
U.S. Bonds0.2%
Non-U.S. Bonds0.0%
Cash & Equivalents8.4%
As of 8/31/2017 (updated monthly).

Growth of 10K

F-2 Share data is not available; please click here for a chart based on an investment in Class A shares.

High & Low Prices

Market Capitalization

14.9%
Large
46.0%
Medium
39.1%
Small
$3,169.64 Million
Weighted Average


As of 06/30/2017 (updated quarterly). Morningstar data as of 06/30/2017 (updated quarterly).

Morningstar Ownership ZoneTM

World Small/Mid Stock
Weighted average of holdings
75% of fund's stock holdings
Morningstar data as of 6/30/17 (updated quarterly)

Description

Fund Objective
The fund's investment objective is to provide long-term growth of capital.
Distinguishing Characteristics
One of few small-company growth funds that invests globally. Normally, at least 80% of assets will be invested in equities of issuers having market capitalizations of $4 billion or less, measured at time of purchase.
Types of Investments
The fund invests primarily in common stocks, government and corporate debt, and cash and equivalents.
Holdings Outside the U.S.
There is no specific limit. Historically, the fund has invested a substantial portion of assets in the U.S. because of the number of small-cap opportunities.

Fund Facts

Fund Inception 04/30/1990
Fund Assets (millions)
As of 8/31/2017 (updated monthly).
$35,810.2
Companies/Issuers
Holdings are as of 9/30/2016 (updated as of most recent fiscal year-end).
540+
Shareholder Accounts
Shareholder accounts are as of 8/31/2017 (updated monthly).
206,777
Regular Dividends Paid Dec
Minimum Initial Investment $250
Capital Gains Paid Dec
Portfolio Turnover (2016) 29%
Fiscal Year-End Sep
Prospectus Date 08/14/2017
CUSIP 831681 82 0
Fund Number 635

Returns

Month-End Returns as of 8/31/17

SMCFX
MSCI All Country World Small Cap Index

Quarter-End Returns as of 6/30/17

Volatility & Return


F-2 Share data is not available; please click here for a chart based on an investment in Class A shares.

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 0.53% 0.30%
Fund at MOP N/A N/A
As of 08/31/2017 (updated monthly).

Valuation

Price/ Price/ Price/
Book Cash Flow Earnings
Fund 2.53 10.33 21.85
MSCI All Country World Small Cap Index 1.77 6.89 17.32
Fund as of 6/30/17. Index as of 8/31/17.

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Julian N. Abdey 6 15 22
Mark E. Denning 26 35
Peter Eliot 5 13 21
Brady L. Enright 12 20 26
J. Blair Frank 19 23 24
Bradford F. Freer 10 23 25
Leo Hee 5 12 23
Claudia P. Huntington 21 42 44
Jonathan Knowles 18 25
Lawrence Kymisis 10 14 22
Harold H. La 5 18 19
Aidan O'Connell 5 13 19
Andraz Razen 7 12 19
Gregory W. Wendt 10 30
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Morningstar Rating TM


Overall Morningstar RatingTM
Funds rated(119)
3-yr. Morningstar RatingTM
(119 funds rated)
5-yr. Morningstar RatingTM
(103 funds rated)
10-yr. Morningstar RatingTM
(55 funds rated)
Overall Morningstar Risk Average
HIGH
LOW
Category World Small/Mid Stock
Ratings are based on risk-adjusted returns as of 8/31/2017 (updated monthly).

Risk Measures

For the 10 Years ending 8/31/17 (updated monthly).

Fund
Standard Deviation 18.77
Sharpe Ratio 0.38
American Funds
Benchmark
As of 6/30/17
(updated quarterly)
Morningstar
Benchmark
As of 8/31/17
(updated monthly)
MSCI All Country World Small Cap Index MSCI ACWI Ex USA NR USD
R-squared 96 87
Beta 0.96 0.91
Capture Ratio (Downside/Upside) 98/99 77/93

Holdings

Equities Breakdown

Equity Fund Holdings
Consumer discretionary 19.5%
Health care 14.8%
Information technology 14.6%
Industrials 11.9%
Financials 11.4%
Consumer staples 6.0%
Materials 4.9%
Energy 4.0%
Real estate 1.8%
Utilities 1.0%
Telecommunication services 0.8%

% of net assets as of 6/30/2017 (updated quarterly).

Top Equities

AAC Technologies Holdings
0.9%
Qorvo
0.8%
Kotak Mahindra Bank
0.8%
Bluebird Bio
0.7%
Molina Healthcare
0.7%
Seria
0.7%
Lions Gate Entertainment
0.7%
Paycom
0.7%
Domino's Pizza
0.6%
Insulet
0.6%

% of net assets as of 8/31/2017 (updated quarterly).

Geographic Breakdown

United States
40.90%
Europe
21.50%
Asia & Pacific Basin
21.80%
Other (Including Canada & Latin America)
6.70%
Cash & equivalents
9.10%
% of net assets as of 6/30/2017 (updated quarterly).

The New Geography of Investing ®

Regions Fund
MSCI All Country World Small Cap Index
United States 44.8% 49.7%
Canada 3.5% 3.4%
Europe 22.5% 21.1%
Japan 6.3% 10.7%
Asia-Pacific ex. Japan 3.9% 4.0%
Emerging Markets 19.0% 11.0%

% of net assets as of 6/30/2017 (updated quarterly).

Fund Breakdown by Domicile

Regions Fund
MSCI All Country World Small Cap Index
United States 40.5% 49.7%
Canada 3.1% 3.4%
Europe 20.4% 21.1%
Japan 5.7% 10.7%
Asia-Pacific ex. Japan 3.6% 4.0%
Emerging Markets 17.2% 11.0%
Cash & Equivalents 9.2% --
Fixed Income 0.2% --

% of net assets as of 6/30/2017 (updated quarterly).

Prices & Distributions

Historical Prices Month-End

Historical Prices Year-End

Historical Distributions as of 01/25/17

2016
Record
Date
Calculated
Date
Pay Date
Income Dividend Regular
Income Dividend Special
Cap. Gains Long-Term
Cap. Gains Short-Term
Reinvest NAV
12/21/16 12/21/16 12/22/16 $0.2921 $0.00 $0.00 $0.00 $46.44
2016 Year-to-Date: Dividends Subtotal: $0.2921 Cap Gains Subtotal: $0.00
Total Distributions: $0.2921

Fees & Expenses

Fees

Annual Management Fees 0.63%
Other Expenses 0.19%
Service 12b-1 --
As of each fund's most recent prospectus.

Expense Ratio

SMCFX 0.82%
Lipper Global Small-/Mid-Cap Funds Average 1.23%
Fund as of most recent prospectus. Morningstar Category as of 7/31/17 (updated monthly).

Resources

Figures shown are past results and are not predictive of results in 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. View fund expense ratios and returns.

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 prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.

For more information about the risks associated with each fund, go to its detailed fund information page or read the prospectus.

There may have been periods when the fund(s) lagged the index(es). Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Funds are managed, so holdings will change.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement .

  1. Excludes certain securities in initial period of acquisition.
  2. Includes short-term securities, accrued income and other assets less liabilities.
  3. Prior to September 30, 2016, securities in the Real Estate sector were reported under the Financials sector.
  4. Figures include convertible securities; totals may not reconcile due to rounding. Methodology notes: The equity breakdown by revenue reflects the fund’s publicly traded equity holdings and excludes cash (and fixed income securities, if applicable). Underlying revenue data were compiled by MSCI and account for disparities in the way companies report their revenues across geographic segments. MSCI breaks out each company’s reported revenues into country-by-country estimates. MSCI provides revenue data figures based on a proprietary, standardized model. Revenue exposure at the fund and index level was calculated by using FactSet, which takes these company revenue exposures and multiplies by the company’s weighting in the portfolio and index. In this breakdown, Israel has been included in Europe.
  5. The portfolio managers shown are as of the fund's most recent prospectus dated 08/14/2017.
  6. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns at NAV, adjusted for volatility, relative to peers. Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, Preservation, Tax Efficiency and Expense metrics. The highest 20% of funds in each classification are named Lipper Leaders for Total Return, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader © 2017, Thomson Reuters, All Rights Reserved.
  7. Calculated by American Funds. Due to differing calculation methods, the figures shown here may differ from those calculated by Morningstar.
  8. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  9. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past results are not guarantee of results in future periods. Morningstar Rating is for Class F-2 only; other classes may have different performance characteristics.
  10. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  11. YTD (year-to-date return): the net change in the value of the fund's shares (in percentage terms) from January 1, 2017, to the current date shown above.
  12. Expense ratios are as of the most recent prospectus.
  13. Source for Lipper expense ratio comparison: Lipper, based on institutional load funds, excluding funds of funds, for the most recent fiscal year-ends available as of 06/30/2017.
  14. The Morningstar Ownership Zone™ provides detail about a portfolio's equity investment style by showing the range of stock sizes and styles. A portfolio's Ownership Zone™ is derived by plotting each stock in the fund's portfolio within the proprietary Morningstar Style Box™. The shaded area represents the center 75% of the fund's assets, and it provides an intuitive visual representation of the area of the market in which the fund invests. A "centroid" plot in the middle of the Ownership Zone represents the weighted average of all the fund's holdings. A fund that is concentrated will have a small ownership zone relative to the area of the style box, and broadly diversified fund will have an ownership zone that stretches across many sizes and style. Over a period of time, the shape and location of a fund's ownership zone may vary.
  15. 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. View dates of first sale and specific expense adjustment information.
  16. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.

©2017 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

Terms and Definitions

Beta: Beta relatively measures a fund's sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a fund's return was more volatile than the market. A beta lower than 1 suggests that the fund was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be.

Capture Ratio Downside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Capture Ratio Upside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Distribution rate 12-month: The income per share paid by the fund over the past 12 months to an investor from dividends (including any special dividends). The distribution rate is expressed as a percentage of the current price.

Historical Long-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate. The information above classifies gain from the sale or exchange of a capital asset held for more than one year as a long-term capital gain.

Historical Regular Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Historical Short-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Historical Special Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Morningstar rating: In an effort to classify funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

MSCI All Country World Small-Cap: MSCI All Country World Small Cap Index is a free float-adjusted market capitalization weighted index that is designed to measure results of smaller capitalization companies in both developed and emerging equity markets. Results reflect dividends net of withholding taxes.

R-Squared: R-squared is a measure of the correlation between a particular fund's return and that of its benchmark index. A measure of 100 indicates that all of the fund's return can be explained by movements in its benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

Share Class: Each share class available for a fund has different fees and expense structures, but all of the classes for a particular fund invest in the same pool of securities.

Standard Deviation: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. Calculated by Morningstar.

Valuation Price-to-Cash Flow: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund.

Valuation Price-to-Earnings Ratio: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Valuation: Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.