New Perspective Fund – ‘N-30D’ for 3/31/03

On:  Tuesday, 6/10/03, at 1:44pm ET   ·   Effective:  6/10/03   ·   For:  3/31/03   ·   Accession #:  71516-3-5   ·   File #:  811-02333

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Annual or Semi-Annual Report Mailed to Shareholders   —   Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                31±   159K 
                          Shareholders                                           


[logo - American Funds(R)]                                                      

The right choice for the long termSM                                            

NEW PERSPECTIVE FUND                                                            

[cover illustration: close-up of United States on a globe with other globes     
in the background]                                                              

Semi-annual report for the six months ended March 31, 2003                      

New Perspective  Fund(R) seeks long-term  growth of capital through  investments
all over the world,  including the United  States.  It focuses on  opportunities
generated  by  changing   global  trade  patterns  and  economic  and  political
relationships.                                                                  

This fund is one of the 29 American  Funds,  the nation's  third-largest  mutual
fund family. For seven decades,  Capital Research and Management  Company,SM the
American  Funds adviser,  has invested with a long-term  focus based on thorough
research and attention to risk.                                                 

Fund  results in this  report  were  calculated  for Class A shares at net asset
value (without a sales charge) unless otherwise indicated.  Here are the average
annual compound returns on a $1,000 investment with all distributions reinvested
for periods ended March 31, 2003:                                               

                                     1 YEAR       5 YEARS         10 YEARS
CLASS A SHARES                                                                  
reflecting 5.75% maximum sales charge   -28.88%      -0.75%           +8.52%    

Results  for other share  classes  can be found on page 28.  Please see the back
cover for important  information about other share classes. For the most current
investment results, please refer to americanfunds.com.                          

FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE  RESULTS.  SHARE
PRICE AND RETURN WILL VARY,  SO YOU MAY LOSE MONEY.  INVESTING FOR SHORT PERIODS
MAKES  LOSSES  MORE  LIKELY.  INVESTMENTS  ARE NOT  FDIC-INSURED,  NOR ARE  THEY
DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER ENTITY.  Investing  outside the
United States is subject to additional risks, such as currency  fluctuations and
political instability, which are detailed in the fund's prospectus.             

FELLOW SHAREHOLDERS:                                                            

The six months ended March 31 provided a study in contrasts for stock investors.
Global equity prices initially rallied from October lows, but gave back gains in
the new year.                                                                   

New Perspective  Fund posted a small positive return of 1.3% for the six months;
that return includes  reinvestment of the dividend of 16.7 cents a share paid in
December.  In comparison,  the unmanaged MSCI World Index,  which measures major
stock markets in 23 countries  including the U.S., gained 2.4% over the same six
months; the 335 global funds tracked by Lipper averaged a return of -0.4%.      

Results  for the full  year -- which  encompassed  severe  declines  in July and
September  -- were  sobering.  New  Perspective  Fund was down  24.5% for the 12
months ended March 31, in line with the 23.8% decline in the World Index and the
25.0% decline in the Lipper global funds average.                               

While these losses were  discouraging,  we would point out the fund's resilience
over the latest  full  market  cycle.  For the past five  years,  a period  that
roughly traces the most recent bull and bear phases,  the World Index and Lipper
average saw cumulative declines of 24.0% and 20.8%, respectively. Over that same
time frame, New Perspective Fund turned in a gain of 2.2%.                      

RESULTS AT A GLANCE (as of March 31, 2003, with all distributions reinvested)   

                                                        [Enlarge/Download Table]
                                                                                                      
                                    Total returns             Average annual compound returns         
                                six months     1 year    5 years         10 years          Lifetime   
                                                                                            (since    
                                                                                        March 13,1973)
New Perspective Fund               +1.3%       -24.5%     +0.4%            +9.2%            +12.6%    
MSCI indexes:/1/                                                                                      
     World Index                   +2.4        -23.8      -5.3             +5.3              +9.2     
     USA Index                     +5.4        -25.2      -4.2             +8.6             +10.3     
Lipper global funds average/2/     -0.4        -25.0      -4.6             +5.3             +11.7     

/1/The indexes are unmanaged and do not include expenses.                                             
/2/Source: Lipper averages do not reflect the effects of sales charges.                               

WAR WORRIES CUT RALLY SHORT                                                     

Global stock markets  staged a turnaround in early October 2002, on the heels of
a volatile  summer.  In response to positive  economic  data,  investors  bid up
equity prices,  with the greatest benefits going to such beaten-down  sectors as
telecommunications  and technology.  The optimism faded,  however, as rising oil
prices and the impending war with Iraq dampened  prospects for a quick recovery.
Markets  generally  retreated  through  the first  three  months  of 2003,  most
markedly in Japan and northern Europe.                                          

U.S. stock prices closed the period on a positive note, rising 5.4% for the full
six months./1/ In Canada,  strong  returns were boosted by a steadily  weakening
U.S. dollar;  equity prices gained 5.5% in Canadian  dollars,  and 13.8% in U.S.
dollars.  Elsewhere,  the weaker dollar mitigated declines in the United Kingdom
(-0.7%),  Germany (-2.8%) and the Netherlands (-4.4%), and ultimately translated
into gains for  Australia  (+10.9%) and France  (+1.4%).  (The strong euro had a
less salutary effect on European exporters,  however, which saw profits squeezed
as their goods became less competitively priced.)                               

/1/Unless otherwise  indicated,  country returns are based on MSCI indexes,  are
measured in U.S. dollars and assume reinvestment of dividends.                  

[Begin Sidebar]                                                                 
WHERE THE FUND'S ASSETS WERE INVESTED                                           
(percent invested by country)                                                   

          3/31/2003        9/30/2002

THE AMERICAS                      46.5%            49.6%                        
United States                39.5             42.6                    
Canada                        4.7              5.3                    
Brazil                        1.8              1.0                    
Mexico                         .5               .7                    

EUROPE                            31.1%            29.5%                        
United Kingdom                9.9              8.5                    
Netherlands                   5.1              5.3                    
France                        4.0              3.9                    
Germany                       3.9              3.7                    
Switzerland                   2.8              2.8                    
Italy                         1.2              1.4                    
Norway                        1.0              1.0                    
Spain                         1.0               --                    
Finland                        .5              1.6                    
Belgium                        .4               .5                    
Denmark                        .4               .3                    
Portugal                       .4               --                    
Ireland                        .3               .2                    
Russia                         .1               .2                    
Sweden                         .1               .1                    

ASIA/PACIFIC RIM                  12.2%            12.0%                        
Japan                         6.9              7.1                    
Australia                     2.1              2.0                    
Taiwan                        1.5              1.6                    
South Korea                   1.2              1.3                    
Singapore                      .5               --                    

OTHER                               .8%              .8%                        

CASH & equivalents                 9.4%             8.1%                        
         100.0%           100.0%
[End Sidebar]                                                                   

Currency valuations were less of an issue in Japan (-13.0%),  where stock prices
continued to be badly hobbled by the country's entrenched financial problems; in
March stock  prices  reached a 17-year low.  Elsewhere in Asia,  the outbreak of
severe acute  respiratory  syndrome  (SARS) at the end of the  reporting  period
dealt an unexpected blow to stocks in Hong Kong (-4.1%),  while the South Korean
market declined 14.4% due in part to tensions with its northern neighbor.       

A LOOK AT THE PORTFOLIO                                                         

Even in this environment,  many of the fund's investments did well. Among larger
positions,   Vodafone  and  Petrobras  each  gained  more  than  35%  in  price.
AstraZeneca,  the  fund's  second  largest  holding,  benefited  from a  general
recovery in  pharmaceutical  stocks,  as did  Shionogi,  Chugai and Forest Labs.
Other notable  gainers  included Bank of Nova Scotia and Deutsche  Telekom,  our
biggest banking and telecommunications  holdings,  respectively.  In all, of 203
companies  held in the portfolio for the entire six months,  more than half rose
in price.                                                                       

There  were some  disappointments.  European  financial  firms  generally  fared
poorly; companies such as AEGON, Allianz and ING saw their losses exacerbated by
high  exposures  to their  local  stock and credit  markets.  New  Perspective's
largest  position,  AOL Time  Warner,  fell 7%, while  Altria  (formerly  Philip
Morris) declined 23% on renewed litigation worries.  Coca-Cola became a casualty
of anti-American  sentiment in the early phases of the Iraq conflict;  its stock
price  fell 16%  during  the six  months.  Finally,  while we have  been able to
sidestep the negative effects of many of the recent corporate scandals, the fund
was not entirely immune: Ahold, a Dutch supermarket retailer, was badly punished
in  February  on  revelations  of  accounting   irregularities  in  one  of  its
subsidiaries.  The fund had held a fair-sized  exposure to Ahold at the start of
the reporting period.                                                           

LOOKING AHEAD                                                                   

Valuations  have become  increasingly  attractive  in a number of markets and we
have  added  selectively  to  holdings  in a range of  industries.  We have been
particularly interested in a number of European  telecommunications  firms, many
of which are improving their balance sheets and generating  strong cash flow. In
addition to Deutsche  Telekom and  Vodafone  mentioned  earlier,  the fund holds
substantial  investments  in  Telefonica,  KPN,  Swisscom and the U.K.  wireless
operator, mm02.                                                                 

At the same time, we have lightened  several  larger  positions in order to seek
better values  elsewhere.  These  included a few  investments  in Australian and
Canadian  banks,  which we sold into  strength,  as well as a number of  energy,
media and pharmaceutical holdings.                                              

It is  impossible  to predict when  markets will take a definitive  turn for the
better.  However,  conditions do appear better than a year ago. Solid  companies
have  been  getting  their  houses  in  order  --  reducing  debt,  streamlining
operations and renewing  attention to corporate  governance.  These efforts have
begun to be reflected in their earnings outlooks, although the uncertainty could
linger for some time.                                                           

Over the years,  and through  numerous market cycles,  New Perspective  Fund has
helped  shareholders meet their long-term financial goals. As the fund marks its
30th anniversary, we will make every effort to continue to do so.               

Cordially,                                                                      

/s/ Walter P. Stern                                                             
Walter P. Stern                                                                 
Chairman of the Board                                                           

/s/ Gina H. Despres                                                             
Gina H. Despres                                                                 
President                                                                       

May 9, 2003                                                                     

INVESTMENT PORTFOLIO                                                            
March 31, 2003                                    unaudited                     

[begin pie chart]                                                               
INDUSTRY DIVERSIFICATION                                                        

Pharmaceuticals                                    8.26%                        
Media                                              7.76                         
Metals & mining                                    6.59                         
Oil & gas                                          5.34                         
Food products                                      5.06                         
Other industries                                  57.61                         
Cash & equivalents                                 9.38                         
[end pie chart]                                                                 

                          percent of
LARGEST EQUITY HOLDINGS                         net assets                      

AOL Time Warner                                    2.87%                        
AstraZeneca                                        2.55                         
Altria Group                                       2.08                         
Vodafone                                           2.03                         
Nestle                                             1.59                         
Tyco International                                 1.42                         
Newmont Mining                                     1.31                         
Coca-Cola                                          1.20                         
Viacom                                             1.17                         
Barrick Gold                                       1.15                         

                                                        [Enlarge/Download Table]
                                                                                                                                   
                                                                                            Shares       Market                    
                                                                                                          value                    
Equity securities                                                                                         (000)                    

PHARMACEUTICALS  -  8.26%                                                                                                          
AstraZeneca PLC (Sweden)                                                                14,641,994  $   499,933                    
AstraZeneca PLC (United Kingdom)                                                           725,000       24,702                    
AstraZeneca PLC (ADR)                                                                      555,000       19,042                    
Pfizer Inc (USA)                                                                         6,970,000      217,185                    
Shionogi & Co., Ltd. (Japan)                                                            13,448,000      182,797                    
Merck & Co., Inc. (USA)                                                                  1,720,000       94,222                    
Sanofi-Synthelabo (France)                                                               1,740,000       87,404                    
UCB NV (Belgium)                                                                         3,577,039       77,430                    
Teva Pharmaceutical Industries Ltd. (ADR) (Israel)                                       1,800,000       74,970                    
Forest Laboratories, Inc. (USA)(1)                                                       1,240,000       66,923                    
Johnson & Johnson (USA)                                                                  1,100,000       63,657                    
Bristol-Myers Squibb Co. (USA)                                                           3,000,000       63,390                    
Pharmacia Corp. (USA)                                                                    1,350,000       58,455                    
H. Lundbeck A/S (Denmark)                                                                3,046,175       56,568                    
Chugai Pharmaceutical Co., Ltd. (Japan)                                                  4,707,100       47,768                    
Aventis (France)                                                                         1,070,000       46,894                    
Eli Lilly and Co. (USA)                                                                    500,000       28,575                    
Schering-Plough Corp. (USA)                                                              1,500,000       26,745                    
Elan Corp., PLC (ADR) (Ireland)(1)                                                       9,042,200       25,228                    

MEDIA  -  7.76%                                                                                                                    
AOL Time Warner Inc. (USA)(1)                                                           56,320,000      611,635                    
Viacom Inc., Class B, nonvoting (USA)(1)                                                 6,840,000      249,797                    
News Corp. Ltd. (ADR) (Australia)                                                        5,401,600      139,901                    
News Corp. Ltd., preferred (ADR)                                                         1,849,600       39,563                    
News Corp. Ltd., preferred                                                               6,824,583       37,105                    
News Corp. Ltd.                                                                          3,972,900       25,848                    
Vivendi Universal (France)                                                              12,145,000      161,151                    
Vivendi Universal (ADR)                                                                    452,000        6,057                    
Comcast Corp., Class A (USA)(1)                                                          4,399,600      125,785                    
Grupo Televisa, SA, ordinary participation certificates (ADR) (Mexico)(1)                2,516,400       63,287                    
TMP Worldwide Inc. (USA)(1)                                                              3,800,000       40,774                    
Dow Jones & Co., Inc. (USA)                                                              1,000,000       35,440                    
Independent News & Media PLC (Ireland)                                                  22,953,850       33,758                    
Interpublic Group of Companies, Inc. (USA)                                               3,460,000       32,178                    
Clear Channel Communications, Inc. (USA)(1)                                                850,000       28,832                    
Lagardere Groupe SCA (France)                                                              700,000       23,945                    

METALS & MINING  -  6.59%                                                                                                          
Newmont Mining Corp. (USA)                                                              10,650,000      278,497                    
Barrick Gold Corp. (Canada)                                                             15,750,000      245,070                    
Anglo American PLC (United Kingdom)                                                     10,500,000      151,008                    
Cia. Vale do Rio Doce, ordinary nominative (ADR) (Brazil)                                4,140,000      111,573                    
Cia. Vale do Rio Doce, preferred nominative, Class A                                       522,800       13,741                    
Placer Dome Inc. (Canada)                                                               12,250,000      120,050                    
Alcoa Inc. (USA)                                                                         5,200,000      100,776                    
Phelps Dodge Corp. (USA)(1)                                                              2,671,000       86,754                    
POSCO (South Korea)                                                                        865,000       68,162                    
Gold Fields Ltd. (South Africa)                                                          4,500,000       48,053                    
BHP Billiton Ltd. (Australia)                                                            8,000,000       44,848                    
Anglogold Ltd. (South Africa)                                                            1,330,600       39,926                    
BHP Billiton PLC (United Kingdom)                                                        7,846,075       39,288                    
Alumina Ltd. (formerly WMC Ltd.) (Australia)                                            12,449,200       30,759                    
WMC Resources Ltd. (Australia)(1)                                                       12,449,200       27,525                    

OIL & GAS  -  5.34%                                                                                                                
ENI SpA (Italy)                                                                         15,900,000      211,651                    
Petroleo Brasileiro SA - Petrobras, ordinary nominative (ADR) (Brazil)                   5,956,900       90,247                    
Petroleo Brasileiro SA - Petrobras, preferred nominative (ADR)                           5,127,000       70,548                    
Norsk Hydro AS (Norway)                                                                  4,064,000      152,897                    
ChevronTexaco Corp. (USA)                                                                2,325,000      150,311                    
"Shell" Transport and Trading Company, PLC (United Kingdom)                             11,000,000       66,462                    
Royal Dutch Petroleum Co. (New York registered) (Netherlands)                            1,255,000       51,141                    
Imperial Oil Ltd. (Canada)                                                               3,024,480       97,267                    
Apache Corp. (USA)                                                                       1,412,600       87,214                    
TOTAL FINA ELF SA, Class B (ADR) (France)                                                  850,000       53,780                    
Unocal Corp. (USA)                                                                       1,500,000       39,465                    
LUKoil Holding (ADR) (Russia)                                                              630,000       34,587                    
ConocoPhillips (USA)                                                                       600,000       32,160                    

FOOD PRODUCTS  -  5.06%                                                                                                            
Nestle SA (Switzerland)                                                                  1,720,000      339,883                    
Groupe Danone (France)                                                                   1,570,000      197,888                    
Unilever NV (Netherlands)                                                                2,640,000      156,887                    
Unilever NV (New York registered)                                                          680,000       40,419                    
Unilever PLC (United Kingdom)                                                           20,673,745      191,366                    
Archer Daniels Midland Co. (USA)                                                         6,000,000       64,800                    
Kraft Foods Inc., Class A (USA)                                                          1,708,400       48,177                    
Sara Lee Corp. (USA)                                                                     2,065,300       38,621                    

SEMICONDUCTOR EQUIPMENT & PRODUCTS  -  4.98%                                                                                       
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(1)                                174,915,734      213,533                    
Samsung Electronics Co., Ltd. (South Korea)                                                679,000      154,269                    
Applied Materials, Inc. (USA)(1)                                                         9,120,000      114,730                    
Texas Instruments Inc. (USA)                                                             6,700,000      109,679                    
Altera Corp. (USA)(1)                                                                    6,070,900       82,200                    
Linear Technology Corp. (USA)                                                            2,450,000       75,632                    
Xilinx, Inc. (USA)(1)                                                                    3,100,000       72,571                    
Agere Systems Inc., Class B (USA)(1)                                                    25,500,000       38,250                    
Agere Systems Inc., Class A(1)                                                          16,875,000       27,000                    
Tokyo Electron Ltd. (Japan)                                                              1,364,100       53,571                    
Rohm Co., Ltd. (Japan)                                                                     400,000       43,504                    
ASML Holding NV (New York registered)(Netherlands)(1)                                    3,575,000       23,488                    
ASML Holding NV(1)                                                                       2,700,000       17,501                    
KLA-Tencor Corp. (USA)(1)                                                                  600,000       21,565                    
Advanced Micro Devices, Inc. (USA)(1)                                                    1,400,000        8,652                    
AIXTRON AG (Germany)                                                                     1,890,136        4,901                    

DIVERSIFIED TELECOMMUNICATION SERVICES  -  4.65%                                                                                   
Deutsche Telekom AG (Germany)                                                           20,462,300      225,368                    
Telefonica, SA (Spain)(1)                                                               22,284,246      208,049                    
Telefonica, SA(1) (2)                                                                      376,292        3,513                    
Royal KPN NV (Netherlands)(1)                                                           30,145,300      193,101                    
Swisscom AG (Switzerland)                                                                  370,000      113,567                    
Portugal Telecom, SA (Portugal)                                                         13,600,000       94,081                    
SBC Communications Inc. (USA)                                                            3,750,000       75,225                    
AT&T Corp. (USA)                                                                         3,920,000       63,504                    
Telecom Italia SpA, nonvoting savings shares (Italy)                                     3,492,100       14,647                    
NTL Inc., Series A, warrants, expire 2011 (USA)(1)                                          39,037           12                    
NTL Europe, Inc. (formerly NTL Inc.) (France)(1)                                            33,462            2                    

BANKS  -  3.95%                                                                                                                    
Bank of Nova Scotia (Canada)                                                             5,869,000      207,621                    
Royal Bank of Canada (Canada)                                                            4,647,000      180,989                    
HSBC Holdings PLC (United Kingdom)                                                      13,960,342      143,116                    
Societe Generale (France)                                                                1,996,400      102,915                    
Bank of America Corp. (USA)                                                              1,537,900      102,793                    
Westpac Banking Corp. (Australia)                                                        4,087,539       37,237                    
Sumitomo Mitsui Financial Group, Inc. 2.25% convertible preferred 2005               5,484,000,000       33,187                    
(formerly Sumitomo Mitsui Banking Corp.) (Japan)                                                                                   
Toronto-Dominion Bank (Canada)                                                           1,223,700       27,025                    
ABN AMRO Holding NV (Netherlands)                                                          575,000        8,394                    

WIRELESS TELECOMMUNICATION SERVICES  -  3.42%                                                                                      
Vodafone Group PLC (United Kingdom)                                                    242,221,227      432,352                    
mm02 PLC (United Kingdom)(1)                                                           210,500,000      148,796                    
KDDI Corp. (Japan)                                                                          29,896       88,562                    
NTT DoCoMo, Inc. (Japan)                                                                    22,000       41,151                    
America Movil SA de CV, Series L (ADR) (Mexico)                                          1,349,300       18,040                    

BEVERAGES  -  3.30%                                                                                                                
Coca-Cola Co. (USA)                                                                      6,300,000      255,024                    
Coca-Cola Enterprises Inc. (USA)                                                         4,750,000       88,778                    
Cia. de Bebidas das Americas - AmBev, preferred nominative (ADR) (Brazil)                5,250,000       87,150                    
Heineken NV (Netherlands)                                                                2,290,000       84,796                    
PepsiCo, Inc. (USA)                                                                      1,942,300       77,692                    
Orkla AS (Norway)                                                                        4,350,000       64,507                    
Anheuser-Busch Companies, Inc. (USA)                                                       980,000       45,678                    

INSURANCE  -  3.25%                                                                                                                
American International Group, Inc. (USA)                                                 4,897,569      242,185                    
AEGON NV (Netherlands)                                                                  16,034,785      120,182                    
Allianz AG (Germany)                                                                     1,620,000       81,359                    
Munchener Ruckversicherungs-Gesellschaft AG (Germany)                                    1,401,000       81,196                    
QBE Insurance Group Ltd. (Australia)                                                    11,774,000       59,675                    
Berkshire Hathaway Inc., Class A (USA)(1)                                                      860       54,868                    
Manulife Financial Corp. (Canada)                                                        1,400,000       33,542                    
Sompo Japan Insurance Inc. (Japan)                                                       4,297,000       20,148                    

INDUSTRIAL CONGLOMERATES  -  3.06%                                                                                                 
Tyco International Ltd. (USA)                                                           23,600,000      303,496                    
General Electric Co. (USA)                                                               8,250,000      210,375                    
Siemens AG (Germany)                                                                     3,365,000      137,835                    

PAPER & FOREST PRODUCTS  -  2.40%                                                                                                  
International Paper Co. (USA)                                                            5,900,000      199,420                    
Georgia-Pacific Corp., Georgia-Pacific Group (USA)                                       6,100,000       84,790                    
Stora Enso Oyj, Class R  (Finland)                                                       8,000,000       73,643                    
Weyerhaeuser Co. (USA)                                                                   1,300,000       62,179                    
Abitibi-Consolidated Inc. (Canada)                                                       5,261,755       36,762                    
UPM-Kymmene Corp. (Finland)                                                              2,306,000       29,769                    
Rayonier Inc. (USA)                                                                        550,000       24,233                    

TOBACCO  -  2.21%                                                                                                                  
Altria Group, Inc. (formerly Philip Morris Companies Inc.) (USA)                        14,783,400      442,911                    
Gallaher Group PLC (United Kingdom)                                                      2,905,100       27,992                    

HOTELS, RESTAURANTS & LEISURE  -  2.20%                                                                                            
Starbucks Corp. (USA)(1)                                                                 9,440,000      243,174                    
Carnival Corp. (USA)                                                                     6,348,900      153,072                    
MGM Mirage, Inc.  (USA)(1)                                                               1,247,100       36,478                    
McDonald's Corp. (USA)                                                                   2,500,000       36,150                    

CHEMICALS  -  2.18%                                                                                                                
Dow Chemical Co. (USA)                                                                   4,995,400      137,923                    
Nitto Denko Corp. (Japan)                                                                4,770,000      127,981                    
Methanex Corp. (Canada)                                                                  6,000,000       55,784                    
L'Air Liquide (France)                                                                     400,000       52,945                    
Valspar Corp. (USA)                                                                      1,112,200       45,522                    
Rohm and Haas Co. (USA)                                                                  1,500,000       44,670                    

AUTOMOBILES  -  2.18%                                                                                                              
Honda Motor Co., Ltd. (Japan)                                                            6,525,000      218,144                    
Suzuki Motor Corp. (Japan)                                                               9,052,000      104,349                    
Renault SA (France)                                                                      2,099,000       69,331                    
General Motors Corp. (USA)                                                                 900,000       30,258                    
DaimlerChrysler AG (Germany)                                                             1,000,000       29,305                    
Hyundai Motor Co. (South Korea)                                                            650,000       12,480                    

ELECTRONIC EQUIPMENT & INSTRUMENTS  -  1.60%                                                                                       
Hon Hai Precision Industry Co., Ltd. (Taiwan)                                           31,619,440      100,835                    
Murata Manufacturing Co., Ltd. (Japan)                                                   1,625,000       63,267                    
Flextronics International Ltd. (Singapore)(1)                                            6,000,000       52,320                    
Hoya Corp. (Japan)                                                                         800,000       48,413                    
Samsung Electro-Mechanics Co., Ltd. (South Korea)                                        1,116,780       29,483                    
Hitachi, Ltd. (Japan)                                                                    7,500,000       26,217                    
Agilent Technologies, Inc. (USA)(1)                                                      1,500,000       19,725                    

DIVERSIFIED FINANCIALS  -  1.45%                                                                                                   
ING Groep NV (Netherlands)                                                              13,746,170      158,586                    
ING Groep NV, Class B, warrants, expire 2008(1)                                          1,265,000        3,652                    
J.P. Morgan Chase & Co. (USA)                                                            5,160,000      122,344                    
Citigroup Inc. (USA)                                                                       706,667       24,345                    

COMPUTERS & PERIPHERALS  -  1.37%                                                                                                  
International Business Machines Corp. (USA)                                              1,720,000      134,900                    
Sun Microsystems, Inc. (USA)(1)                                                         30,000,000       97,800                    
Hewlett-Packard Co. (USA)                                                                2,300,000       35,765                    
Dell Computer Corp. (USA)(1)                                                               500,000       13,655                    
NEC Corp. (Japan)                                                                        3,000,000        9,928                    

OFFICE ELECTRONICS  -  1.36%                                                                                                       
Xerox Corp. (USA)(1)                                                                    20,000,000      174,000                    
Canon, Inc. (Japan)                                                                      3,330,000      116,684                    

SOFTWARE  -  1.34%                                                                                                                 
Microsoft Corp. (USA)                                                                    6,100,000      147,681                    
Cadence Design Systems, Inc. (USA)(1)                                                    8,673,600       86,736                    
SAP AG (Germany)                                                                           511,500       38,449                    
Oracle Corp. (USA)(1)                                                                    1,100,000       11,934                    

ELECTRIC UTILITIES  -  1.30%                                                                                                       
Scottish Power PLC (United Kingdom)                                                     23,757,902      141,105                    
E.ON AG (Germany)                                                                        3,300,000      135,892                    

ENERGY EQUIPMENT & SERVICES  -  0.98%                                                                                              
Baker Hughes Inc. (USA)                                                                  5,100,000      152,643                    
Schlumberger Ltd. (USA)                                                                  1,460,000       55,495                    

COMMUNICATIONS EQUIPMENT  -  0.84%                                                                                                 
Cisco Systems, Inc. (USA)(1)                                                            11,950,000      155,111                    
Motorola, Inc. (USA)                                                                     3,000,000       24,780                    

PERSONAL PRODUCTS  -  0.80%                                                                                                        
Avon Products, Inc. (USA)                                                                1,450,000       82,723                    
Shiseido Co., Ltd. (Japan)                                                               7,123,000       70,054                    
Gillette Co. (USA)                                                                         600,000       18,564                    

HOUSEHOLD DURABLES  -  0.76%                                                                                                       
Koninklijke Philips Electronics NV (Netherlands)                                         8,140,000      127,606                    
Sony Corp. (Japan)                                                                         964,800       34,297                    

MACHINERY  -  0.59%                                                                                                                
Deere & Co. (USA)                                                                        1,300,000       51,038                    
Parker Hannifin Corp. (USA)                                                              1,000,000       38,740                    
Caterpillar Inc. (USA)                                                                     720,000       35,424                    

SPECIALTY RETAIL  -  0.47%                                                                                                         
Kingfisher PLC (United Kingdom)                                                         27,305,338       99,202                    

ELECTRICAL EQUIPMENT  -  0.45%                                                                                                     
ABB Ltd (Switzerland)(1)                                                                40,150,766       94,022                    
ABB Ltd. (1)                                                                               770,405        1,811                    

OTHER  -  4.92%                                                                                                                    
eBay Inc. (USA)(1)                                                                       1,138,900       97,137                    
Koninklijke Ahold NV (Netherlands)                                                      28,725,200       95,444                    
Smurfit-Stone Container Corp. (USA)(1)                                                   6,700,000       89,505                    
National Grid Transco PLC (formerly National Grid Group PLC) (United Kingdom)           14,535,100       88,969                    
Wal-Mart Stores, Inc. (USA)                                                              1,350,000       70,241                    
Cendant Corp. (USA)(1)                                                                   5,200,000       66,040                    
United Parcel Service, Inc., Class B (USA)                                               1,094,700       62,398                    
Medtronic, Inc. (USA)                                                                    1,260,000       56,851                    
Asahi Glass Co., Ltd. (Japan)                                                            9,592,000       51,634                    
Bouygues SA (France)                                                                     2,350,000       47,208                    
Luxottica Group SpA (ADR) (Italy)                                                        3,741,000       40,328                    
Kao Corp. (Japan)                                                                        1,890,000       38,312                    
Raytheon Co. (USA)                                                                       1,300,000       36,881                    
Yahoo! Inc. (USA)(1)                                                                     1,500,000       36,030                    
Wal-Mart de Mexico, SA de CV, Series V (Mexico)                                         10,995,004       26,746                    
Wal-Mart de Mexico, SA de CV, Series C                                                   3,819,325        8,288                    
Cie. Financiere Richemont AG, units, Class A (Switzerland)                               2,151,017       29,317                    
BAE SYSTEMS PLC (United Kingdom)                                                        14,008,732       24,784                    
VeriSign, Inc. (USA)(1)                                                                  2,760,300       24,125                    
Securitas AB, Class B (Sweden)                                                           1,700,000       16,068                    
Holcim Ltd. (Switzerland)                                                                   95,000       15,667                    
Ushio Inc. (Japan)                                                                       1,092,000       10,435                    
Mirant Corp. (USA)(1)                                                                    6,000,000        9,600                    
Chubb PLC (United Kingdom)                                                               4,474,856        4,135                    
TI Automotive Ltd., Class A (United Kingdom)(1) (2)                                      4,578,091            0                    

Miscellaneous  -  1.60%                                                                                                            
Other equity securities in initial period of acquisition                                                352,268                    

Total equity securities (cost: $21,508,212,000)                                                      19,324,426                    

                                                                                          Principal       Market                   
                                                                                             amount        value                   
Fixed-income securities                                                                       (000)        (000)                   

METALS & MINING  -  0.00%                                                                                                          
Cia. Vale do Rio Doce 0% (undated) (2)                                                        $ 38           $0                    

Total fixed income securities (cost: $0)                                                                      0                    

                                                                                          Principal       Market                   
                                                                                             amount        value                   
Short-term securities                                                                         (000)        (000)                   

Corporate short-term notes  -  4.18%                                                                                               
Canadian Imperial Holdings Inc. 1.26%-1.305% due 4/2-5/5/2003                             $ 51,000     $ 50,966                    
Asset Securitization Cooperative Corp. 1.26% due 4/9/2003 (3)                               30,000       29,991                    
Societe Generale North America Inc. 1.25%-1.285% due 4/14-5/2/2003                          79,500       79,427                    
CBA (Delaware) Finance Inc. 1.28%-1.30% due 4/7-4/9/2003                                    75,000       74,979                    
Bank of Ireland 1.25%-1.26%  due 5/7-5/15/2003 (3)                                          57,600       57,517                    
Dexia Delaware LLC 1.23%-1.26% due 4/17-5/1/2003                                            55,500       55,453                    
HBOS Treasury Services PLC 1.26%-1.27% due 5/7-5/8/2003                                     55,000       54,928                    
Exxon Asset Management Co. 1.20%-1.22% due 4/16-4/23/2003 (3)                               42,000       41,971                    
Svenska Handelsbanken 1.26% due 4/30/2003                                                   25,000       24,974                    
Stadshypotek AB 1.20% due 5/13/2003 (3)                                                     15,000       14,978                    
American Honda Finance Corp. 1.28% due 4/7/2003                                             38,710       38,700                    
Royal Bank of Scotland PLC 1.25% due 4/4/2003                                               38,000       37,995                    
Private Export Funding Corp. 1.21% due 5/15-5/28/2003 (3)                                   35,000       34,938                    
KFW International Finance Inc. 1.22% due 5/5/2003 (3)                                       23,850       23,822                    
KFW International Finance Inc. 1.25% due 4/22/2003                                           6,150        6,145                    
Alcon Capital Corp. 1.26% due 4/11/2003 (3)                                                 25,000       24,990                    
Nestle Capital Corp. 1.24% due 4/2/2003 (3)                                                  2,500         2500                    
ANZ (Delaware) Inc. 1.29% due 4/7/2003                                                      27,000       26,993                    
ChevronTexaco Corp. 1.25% due 4/8/2003                                                      27,000       26,992                    
BMW U.S. Capital Corp. 1.27% due 4/4/2003                                                   26,300       26,296                    
Bank of Nova Scotia 1.25% due 4/16/2003                                                     25,000       24,986                    
Bank of America Corp. 1.22% due 4/22/2003                                                   25,000       24,981                    
Abbey National North America LLC 1.255% due 5/12/2003                                       25,000       24,963                    
BNP Paribas Finance Inc. 1.25% due 5/27/2003                                                25,000       24,951                    
HSBC USA Inc. 1.25% due 4/24/2003                                                           21,000       20,983                    
GE Capital International Funding Inc. 1.27% due 4/22/2003                                   14,600       14,589                    
ABN AMRO North America Finance Inc. 1.28% due 4/7/2003                                      13,500       13,497                    
Diageo Capital PLC 1.25% due 4/15/2003 (3)                                                   8,000        7,996                    

Federal agency discount notes  -  4.16%                                                                                            
Federal Home Loan Bank 1.13%-1.25% due 4/9-6/27/2003                                       390,627      390,044                    
Freddie Mac 1.14%-1.25% due 4/3-6/20/2003                                                  321,700      321,284                    
Fannie Mae 1.165%-1.28% due 4/1-6/18/2003                                                  176,400      176,115                    

U.S. Treasuries  -  0.27%                                                                                                          
U.S. Treasury Bills 1.16%-1.17% due 4/24-6/26/2003                                          56,600       56,510                    

Certificates of deposit  -  0.10%                                                                                                  
Svenska Handelsbanken 1.305% due 4/10/2003                                                  21,000       21,000                    

Total short-term securities (cost: $1,856,430,000)                                                    1,856,454                    

Total investment securities (cost: $23,364,642,000)                                                  21,180,880                    

New Taiwanese Dollar  (cost: $9,530,000)                                                NT$299,656        8,648                    

Other assets less liabilities                                                                           134,195                    

Net assets                                                                                          $21,323,723                    

(1) Security did not produce income during the last 12 months.                                                                     
(2) Valued under fair value procedures adopted by authority of the Board of Directors.                                             
(3) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may
    require registration.                                                                                                          

ADR = American Depositary Receipts                                                                                                 

See Notes to Financial Statements                                                                                                  

                                                        [Enlarge/Download Table]
New Perspective Fund                                                                                                               
Financial statements                                                                                                               
                                                                                                                                   
Statement of assets and liabilities                                                                         unaudited              
at March 31, 2003                                         (dollars and shares in thousands, except per-share amounts)              

Assets:                                                                                                                            
 Investment securities at market (cost: $23,364,642)                                                      $21,180,880              
 Cash denominated in non-U.S. currencies (cost: $9,530)                                                         8,648              
 Receivables for:                                                                                                                  
  Sales of investments                                                                   $131,405                                  
  Sales of fund's shares                                                                   25,734                                  
  Dividends and interest                                                                   64,372             221,511              
                                                                                                           21,411,039              
Liabilities:                                                                                                                       
 Payables for:                                                                                                                     
  Purchases of investments                                                                 39,296                                  
  Repurchases of fund's shares                                                             30,249                                  
  Investment advisory services                                                              7,426                                  
  Services provided by affiliates                                                           8,012                                  
  Deferred Directors' and Advisory Board compensation                                       1,340                                  
  Other fees and expenses                                                                     993              87,316              
Net assets at March 31, 2003                                                                              $21,323,723              

Net assets consist of:                                                                                                             
 Capital paid in on shares of capital stock                                                               $24,491,223              
 Undistributed net investment income                                                                           49,915              
 Accumulated net realized loss                                                                             (1,034,135)             
 Net unrealized depreciation                                                                               (2,183,280)             
Net assets at March 31, 2003                                                                              $21,323,723              

Total authorized capital stock - 2,000,000 shares, $0.001 par value                                                                

                                                                                           Shares     Net asset value              
                                                               Net assets             outstanding        per share (1)             
Class A                                                       $19,866,922               1,200,072              $16.55              
Class B                                                           622,927                  38,030               16.38              
Class C                                                           322,237                  19,714               16.35              
Class F                                                           219,697                  13,290               16.53              
Class 529-A                                                        84,022                   5,085               16.52              
Class 529-B                                                        18,918                   1,151               16.43              
Class 529-C                                                        23,391                   1,423               16.44              
Class 529-E                                                         4,690                     285               16.48              
Class 529-F                                                           321                      19               16.53              
Class R-1                                                           1,226                      75               16.43              
Class R-2                                                          28,409                   1,728               16.44              
Class R-3                                                          55,280                   3,353               16.49              
Class R-4                                                          11,378                     689               16.52              
Class R-5                                                          64,305                   3,882               16.56              

(1) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except
    for classes A and 529-A, for which the maximum offering prices per share were $17.56 and $17.53, respectively.                 

See Notes to Financial Statements                                                                                                  

Statement of operations                                                                                         unaudited          
for the six months ended March 31, 2003                                                             (dollars in thousands)         
Investment income:                                                                                                                 
 Income:                                                                                                                           
  Dividends (net of non-U.S. withholding tax of $10,800)                                     $159,501                              
  Interest (net of non-U.S. withholding tax of $16)                                            17,048            $176,549          

 Fees and expenses:                                                                                                                
  Investment advisory services                                                                 46,198                              
  Distribution services                                                                        31,769                              
  Transfer agent services                                                                      16,083                              
  Administrative services                                                                         889                              
  Reports to shareholders                                                                         814                              
  Registration statement and prospectus                                                           396                              
  Postage, stationery and supplies                                                              2,783                              
  Directors' and Advisory Board compensation                                                      104                              
  Auditing and legal                                                                              109                              
  Custodian                                                                                     2,396                              
  State and local taxes                                                                           362                              
  Other                                                                                           102                              
  Total expenses before reimbursement                                                         102,005                              
   Reimbursement of expenses                                                                       54             101,951          
 Net investment income                                                                                             74,598          

Net realized loss and unrealized appreciation on investments and non-U.S. currency:                                                
 Net realized loss on:                                                                                                             
  Investments                                                                                (486,386)                             
  Non-U.S. currency transactions                                                               (1,754)           (488,140)         
 Net unrealized appreciation on:                                                                                                   
  Investments                                                                                 695,800                              
  Non-U.S. currency translations                                                                  619             696,419          
   Net realized loss and unrealized appreciation on investments and non-U.S. currency                             208,279          
Net increase in net assets resulting from operations                                                             $282,877          

See Notes to Financial Statements                                                                                                  

Statement of changes in net assets                                                                 (dollars in thousands)          
                                                                                           Six months          Year ended          
                                                                                      ended March 31,       September 30,          
                                                                                                2003*                2002          
Operations:                                                                                                                        
 Net investment income                                                                        $74,598            $224,075          
 Net realized loss on investments and non-U.S. currency transactions                        (488,140)           (548,101)          
 Net unrealized appreciation (depreciation) on investments and non-U.S.                                                            
   currency translations                                                                      696,419          (3,737,576)         
  Net increase (decrease) in net assets resulting from operations                             282,877          (4,061,602)         

Dividends paid to shareholders from net investment income                                   (211,435)           (347,738)          

Capital share transactions                                                                  (443,443)            418,923           

Total decrease in net assets                                                                (372,001)         (3,990,417)          

Net assets:                                                                                                                        
 Beginning of period                                                                       21,695,724          25,686,141          
 End of period (including undistributed net investment income:                                                                     
   $49,915 and $186,752, respectively)                                                    $21,323,723         $21,695,724          

*Unaudited                                                                                                                         

See Notes to Financial Statements                                                                                                  

Notes to financial statements                         unaudited                 

1.   Organization and significant accounting policies                           

Organization - New Perspective  Fund, Inc. (the "fund") is registered  under the
Investment Company Act of 1940 as an open-end, diversified management investment
company. The fund seeks long-term growth of capital through investments all over
the world, including the United States. It focuses on opportunities generated by
changing global trade patterns and economic and political relationships.        

The fund offers 14 share classes  consisting of four retail share classes,  five
CollegeAmerica  savings  plan  share  classes  and five  retirement  plan  share
classes.  The CollegeAmerica  savings plan share classes (529-A,  529-B,  529-C,
529-E and  529-F) are  sponsored  by the  Commonwealth  of  Virginia  and can be
utilized to save for college  education.  The five retirement plan share classes
(R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry
any conversion rights. The fund's share classes are described below:            

                                                        [Enlarge/Download Table]
                                                                                                         

---------------------------------------------------------------------------------------------------------
      Share class       Initial sales charge Contingent deferred sales         Conversion feature        
                                               charge upon redemption                                    
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
  Classes A and 529-A       Up to 5.75%                 None                          None               
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
  Classes B and 529-B           None          Declines from 5% to zero   Classes B and 529-B convert to  
                                               for redemptions within         classes A and 529-A,       
                                               six years of purchase    respectively, after eight years  
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
        Class C                 None         1% for redemptions within    Class C converts to Class F    
                                                one year of purchase             after 10 years          
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
      Class 529-C               None         1% for redemptions within                None               
                                                one year of purchase                                     
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
      Class 529-E               None                    None                          None               
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
  Classes F and 529-F           None                    None                          None               
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Classes R-1, R-2, R-3,          None                    None                          None               
      R-4 and R-5                                                                                        
---------------------------------------------------------------------------------------------------------

Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation.  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,  administrative  and  shareholder
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 class.                                              

Significant accounting policies - The financial statements have been prepared to
comply with  accounting  principles  generally  accepted in the United States of
America.  These principles  require management to make estimates and assumptions
that affect reported amounts and  disclosures.  Actual results could differ from
those  estimates.  The  following  is a summary  of the  significant  accounting
policies followed by the fund:                                                  

          Security valuation - Equity securities are valued at the last reported
          sale price on the broadest and most representative  exchange or market
          on which such  securities  are  traded,  as  determined  by the fund's
          investment adviser, as of the close of business or, lacking any sales,
          at the last available bid price. Fixed-income securities are valued at
          prices obtained from a pricing service.  However, where the investment
          adviser deems it  appropriate,  they will be valued at the mean quoted
          bid and  asked  prices  or at  prices  for  securities  of  comparable
          maturity,  quality and type.  Short-term securities maturing within 60
          days are valued at amortized cost,  which  approximates  market value.
          The ability of the issuers of the debt  securities held by the fund to
          meet their  obligations may be affected by economic  developments in a
          specific  industry,  state or region.  Forward currency  contracts are
          valued  at the  mean of  their  representative  quoted  bid and  asked
          prices.  Securities and other assets for which  representative  market
          quotations  are not  readily  available  are  valued at fair  value as
          determined  in  good  faith  by  authority  of  the  fund's  Board  of
          Directors.  If  events  occur  that  materially  affect  the  value of
          securities  (including  non-U.S.  securities)  between  the  close  of
          trading in those  securities  and the close of regular  trading on the
         New York Stock Exchange, the securities will be valued at fair value.

          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.  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,  administrative and shareholder services, are charged
directly to the respective share class.                     

          Dividends  and   distributions   to   shareholders   -  Dividends  and
          distributions  paid to  shareholders  are recorded on the  ex-dividend
date.                                                       

          Non-U.S.  currency  translation  - Assets and  liabilities,  including
          investment   securities,   denominated  in  non-U.S.   currencies  are
          translated  into U.S.  dollars at the exchange  rates in effect at the
          end of  the  reporting  period.  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.  In  the
          accompanying financial statements,  the effects of changes in non-U.S.
          exchange  rates on  investment  securities  are included  with the net
          realized gain or loss and net unrealized  appreciation or depreciation
          on investments.  The realized gain or loss and unrealized appreciation
          or depreciation  resulting from all other transactions  denominated in
non-U.S. currencies are disclosed separately.               

          Forward currency  contracts - The fund may enter into forward currency
          contracts, which represent agreements to exchange non-U.S.  currencies
          on specific future dates at predetermined  rates. The fund enters into
          these contracts to manage its exposure to changes in non-U.S. exchange
          rates arising from  investments  denominated  in non-U.S.  currencies.
          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 non-U.S.  exchange  rates.  Due to these
          risks,  the fund could incur losses up to the entire contract  amount,
          which may exceed the net  unrealized  value shown in the  accompanying
          financial  statements.  On a daily  basis,  the  fund  values  forward
          currency contracts based on the applicable  exchange rates and records
          unrealized gains or losses.  The fund records realized gains or losses
          at the time the  forward  contract  is closed  or  offset  by  another
          contract  with  the  same  broker  for the  same  settlement  date and
currency.                                                   

2.   Non-U.S. investments                                                       

Investment  risk - The risks of investing in securities of non-U.S.  issuers may
include,  but are not  limited to,  investment  and  repatriation  restrictions;
revaluation of currencies;  adverse political, social and economic developments;
government involvement in the private sector; limited and less reliable investor
information;  lack of  liquidity;  certain  local  tax law  considerations;  and
limited regulation of the securities markets.                                   

Taxation - Dividend and interest income is recorded net of non-U.S. taxes paid. 

3.   Federal income taxation and distributions                                  

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.              

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 differing  treatment for items such as
non-U.S. currency gains and losses; short-term capital gains and losses; capital
losses  related  to sales of  securities  within 30 days of  purchase;  expenses
deferred  for tax  purposes;  and net capital  losses.  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.  As of March 31, 2003,
the cost of investment  securities and cash denominated in non-U.S.  currencies,
for federal income tax purposes was $23,373,961,000.                            

As of March 31, 2003,  the components of  distributable  earnings on a tax basis
were as follows:                                                                

                                                          (dollars in thousands)
Undistributed net investment income and currency gains             $49,501      
Accumulated short-term capital losses                             (418,213)     
Accumulated long-term capital losses                              (613,469)     
Gross unrealized appreciation on investment securities           2,572,081      
Gross unrealized depreciation on investment securities          (4,756,514)     

Accumulated  short-term capital losses above include a capital loss carryforward
of $276,746,000  expiring in 2010. The capital loss carryforward will be used to
offset  any  capital  gains  realized  by the  fund  in the  current  year or in
subsequent   years  through  the  expiration   date.  The  fund  will  not  make
distributions from capital gains while a capital loss carryforward remains.     

The tax character of distributions  paid to shareholders was as follows (dollars
in thousands):                                                                  

                                                        [Enlarge/Download Table]
                                                                                                                                  
                                                Distributions from ordinary income         Distributions from  Total distributions
                                            Net investment income         Short-term  long-term capital gains                 paid
Share class(1)                                 and currency gains      capital gains                                              
Six months ended March 31, 2003                                                                                                   
Class A                                                 $ 204,014                  -                        -            $ 204,014
Class B                                                     1,631                  -                        -                1,631
Class C                                                     1,281                  -                        -                1,281
Class F                                                     2,233                  -                        -                2,233
Class 529-A                                                   762                  -                        -                  762
Class 529-B                                                   100                  -                        -                  100
Class 529-C                                                   123                  -                        -                  123
Class 529-E                                                    34                  -                        -                   34
Class 529-F                                                     2                  -                        -                    2
Class R-1                                                       8                  -                        -                    8
Class R-2                                                     123                  -                        -                  123
Class R-3                                                     336                  -                        -                  336
Class R-4                                                      46                  -                        -                   46
Class R-5                                                     742                  -                        -                  742
Total                                                   $ 211,435                  -                        -            $ 211,435

Year ended September 30, 2002                                                                                                     
Class A                                                 $ 341,761                  -                        -            $ 341,761
Class B                                                     3,907                  -                        -                3,907
Class C                                                       829                  -                        -                  829
Class F                                                     1,241                  -                        -              $ 1,241
Total                                                   $ 347,738                  -                        -              347,738

(1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5  
    shares were offered beginning May 15, 2002.                                                                                   

4. Fees and transactions with related parties                                   

Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent  company of American  Funds Service  Company  ("AFS"),  the fund's
transfer agent, and American Funds  Distributors,  Inc.  ("AFD"),  the principal
underwriter of the fund's shares.                                               

          Investment  advisory  services - The  Investment  Advisory and Service
          Agreement  with CRMC  provides for monthly fees accrued  daily.  These
          fees are based on a declining  series of annual rates  beginning  with
          0.600% on the first $500 million of daily net assets and decreasing to
          0.365% on such  assets in excess of $44  billion.  For the six  months
          ended  March  31,  2003,  the  investment  advisory  services  fee was
          equivalent  to an  annualized  rate of  0.402%  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 described
below:                                                      

               Distribution   services   -  The  fund  has   adopted   plans  of
               distribution  for all share classes,  except Class R-5. Under the
               plans,  the Board of Directors  approves  certain  categories  of
               expenses that are used to finance  activities  primarily intended
               to sell fund shares. The plans provide for annual expenses, based
               on a percentage of average  daily net assets,  ranging from 0.25%
               to 1.00% as noted  below.  In some cases,  the Board of Directors
  has approved expense amounts lower than plan limits.

                                                        [Enlarge/Download Table]
                                                                                                            

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

               All share classes 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 for
               providing  certain  shareholder  services.  Expenses in excess of
               these amounts,  up to approved limits,  may be used to compensate
dealers and wholesalers for shares sold.          

               For classes A and 529-A, the Board of Directors has also approved
               the  reimbursement  of dealer and wholesaler  commissions paid by
               AFD for certain  shares sold without a sales  charge.  Each class
               reimburses  AFD for amounts billed within the prior 15 months but
               only to the extent that the overall annual expense limit of 0.25%
               is not exceeded. As of March 31, 2003, there were no unreimbursed
       expenses subject to reimbursement for classes A or 529-A.

               Transfer agent services - The fund has a transfer agent agreement
               with AFS for Class A and B shares.  Under this  agreement,  these
               share  classes   compensate   AFS  for  transfer  agent  services
               including   shareholder    recordkeeping,    communications   and
               transaction  processing.  AFS is  also  compensated  for  certain
               transfer agent services  provided to all other share classes from
            the administrative services fees paid to CRMC described below.

               Administrative services - The fund has an administrative services
               agreement  with CRMC to provide  transfer agent and other related
               shareholder services for all classes of shares other than classes
               A and B.  Each  relevant  class  pays CRMC  annual  fees of 0.15%
               (0.10% for Class R-5) based on its  respective  average daily net
               assets.  Each relevant class also pays AFS additional amounts for
               certain transfer agent services.  CRMC and AFS may use these fees
               to compensate third parties for performing these services. During
               the start-up  period for classes R-1,  R-2, R-3 and R-4, CRMC has
               voluntarily agreed to pay a portion of these fees. Each 529 share
               class is subject to an additional annual administrative  services
               fee of 0.10% of its respective average daily net assets; this fee
               is payable to the Commonwealth of Virginia for the maintenance of
               the CollegeAmerica plan. Although these amounts are included with
               administrative   services  fees  in  the  accompanying  financial
               statements,  the  Commonwealth  of Virginia is not  considered  a
               related party.  Administrative  services fees are presented gross
of any payments made by CRMC.                     

               Expenses under the agreements  described above for the six months
           ended March 31, 2003, were as follows (dollars in thousands):

                                                        [Enlarge/Download Table]
                                                                                                               
---------------------------------------------------------------------------------------------------------------
  Share class     Distribution    Transfer agent                    Administrative services                    
                    services         services                                                                  
                                                  -------------------------------------------------------------
                                                         CRMC           Transfer agent      Commonwealth of    
                                                    administrative         services             Virginia       
                                                       services                              administrative    
                                                                                                services       
---------------------------------------------------------------------------------------------------------------
    Class A         $26,274          $15,518        Not applicable      Not applicable       Not applicable    
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
    Class B           3,215            565          Not applicable      Not applicable       Not applicable    

---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
    Class C           1,611          Included            $241                 $98            Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
    Class F            276           Included             166                 39             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
  Class 529-A          40            Included             56                   9                  $37          
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
  Class 529-B          81            Included             12                   7                    8          
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
  Class 529-C         101            Included             15                   7                   10          
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
  Class 529-E          9             Included              3                  -*                   2           
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
  Class 529-F          -*            Included             -*                   -*                  -*          
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
   Class R-1           4             Included              1                   3             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
   Class R-2           59            Included             12                  70             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
   Class R-3           90            Included             27                  25             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
   Class R-4           9             Included              5                   2             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
   Class R-5     Not applicable      Included             33                   1             Not applicable    
                                        in                                                                     
                                  administrative                                                               
                                     services                                                                  
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
     Total          $31,769          $16,083             $571                $261                 $57          
----------------===============================================================================================
* Amount less than one thousand.                                                                               

Deferred  Directors' and Advisory Board compensation - Since the adoption of the
deferred compensation plan in 1993, Directors and Advisory Board members 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.  Directors'  and Advisory
Board fees in the  accompanying  financial  statements  include the current fees
(either paid in cash or deferred)  and the net increase or decrease in the value
of the deferred amounts.                                                        

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

5.   Capital share transactions                                                 

                                                        [Enlarge/Download Table]
                                                                                                                                   
Capital share transactions in the fund were as follows (dollars and shares in thousands):                                          
Share class(1)                           Sales(2)        Reinvestments of dividends       Repurchases(2)    Net (decrease) increase
                                      Amount   Shares     Amount        Shares           Amount    Shares      Amount    Shares    
Six months ended March 31, 2003                                                                                                    
Class A                          $ 2,148,697  121,623  $ 192,900        10,741     $ (3,058,338) (174,433) $ (716,741)  (42,069)   
Class B                               94,396    5,387      1,579            89          (51,396)   (2,990)     44,579     2,486    
Class C                              120,559    6,878      1,227            69          (74,213)   (4,270)     47,573     2,677    
Class F                              142,556    8,088      1,970           110         (112,107)   (6,398)     32,419     1,800    
Class 529-A                           32,317    1,821        762            43           (1,587)      (92)     31,492     1,772    
Class 529-B                            7,728      438        100             6             (243)      (14)      7,585       430    
Class 529-C                            9,394      532        123             7             (268)      (15)      9,249       524    
Class 529-E                            2,590      146         34             2              (20)       (1)      2,604       147    
Class 529-F                              350       19          2            -*               (6)       -*         346        19    
Class R-1                              1,227       69          8            -*             (151)       (8)      1,084        61    
Class R-2                             31,511    1,796        123             7           (5,087)     (291)     26,547     1,512    
Class R-3                             65,112    3,693        336            19          (12,033)     (694)     53,415     3,018    
Class R-4                             12,667      710         46             2           (1,205)      (69)     11,508       643    
Class R-5                              7,954      446        576            32           (3,633)     (204)      4,897       274    
Total net increase                                                                                                                 
   (decrease) in fund            $ 2,677,058  151,646  $ 199,786        11,127     $ (3,320,287) (189,479) $ (443,443)  (26,706)   

Year ended September 30, 2002                                                                                                      
Class A                          $ 4,493,172  218,712  $ 321,388        14,962     $ (5,290,086) (262,475) $ (475,526)  (28,801)   
Class B                              333,236   16,208      3,775           177          (71,165)   (3,630)    265,846    12,755    
Class C                              303,539   14,856        795            37          (43,764)   (2,319)    260,570    12,574    
Class F                              249,335   12,111      1,119            52          (73,381)   (3,722)    177,073     8,441    
Class 529-A                           68,860    3,350          -             -             (734)      (37)     68,126     3,313    
Class 529-B                           14,845      726          -             -             (102)       (5)     14,743       721    
Class 529-C                           18,542      907          -             -             (139)       (8)     18,403       899    
Class 529-E                            2,793      139          -             -              (11)       (1)      2,782       138    
Class 529-F                                1       -*          -             -                -         -           1        -*    
Class R-1                                277       15          -             -              (25)       (1)        252        14    
Class R-2                              4,587      254          -             -             (678)      (38)      3,909       216    
Class R-3                              6,769      382          -             -             (831)      (47)      5,938       335    
Class R-4                                896       49          -             -              (56)       (3)        840        46    
Class R-5                             78,859    3,755          -             -           (2,893)     (147)     75,966     3,608    
Total net increase                                                                                                                 
   (decrease) in fund            $ 5,575,711  271,464  $ 327,077        15,228     $ (5,483,865) (272,433)  $ 418,923    14,259    

* Amount less than one thousand.                                                                                                   
(1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5   
    shares were offered beginning May 15, 2002.                                                                                    
(2) Includes exchanges between share classes of the fund.                                                                          

6.   Restricted securities                                                      

The fund has invested in certain  securities  for which resale may be limited to
qualified  buyers  or which  are  otherwise  restricted.  These  securities  are
identified in the investment portfolio. As of March 31, 2003, the total value of
restricted securities was $238,703,000, which represents 1.12% of the net assets
of the fund.                                                                    

7.   Investment transactions and other disclosures                              

The fund made purchases and sales of investment securities, excluding short-term
securities, of $2,442,547,000 and $3,272,659,000,  respectively,  during the six
months ended March 31, 2003.                                                    

The fund  receives  a  reduction  in its  custodian  fee equal to the  amount of
interest calculated on certain cash balances held at the custodian bank. For the
six months ended March 31, 2003, the custodian fee of $2,396,000 includes $9,000
that was offset by this reduction, rather than paid in cash.                    

                                                        [Enlarge/Download Table]
                                                                                                            
Financial Highlights (1)                                                                                    
                                                       Income (loss) from investment operations(3)          
                                                                                  Net                       
                                            Net asset                    gains(losses)                      
                                               value,           Net     on securities  Total from           
                                            beginning    investment    (both realized  investment           
                                            of period  income (loss)   and unrealized) operations           
Class A:                                                                                                    
 Six months ended 3/31/2003          (2)       $16.50          $.06              $.16        $.22           
 Year ended 9/30/2002                           19.74           .17             (3.14)      (2.97)          
 Year ended 9/30/2001                           28.66           .34             (5.86)      (5.52)          
 Year ended 9/30/2000                           26.25           .30              4.56        4.86           
 Year ended 9/30/1999                           20.50           .26              7.26        7.52           
 Year ended 9/30/1998                           21.86           .27              (.11)        .16           
Class B:                                                                                                    
 Six months ended 3/31/2003          (2)        16.28          (.01)              .15         .14           
 Year ended 9/30/2002                           19.53           .02             (3.11)      (3.09)          
 Year ended 9/30/2001                           28.54           .14             (5.80)      (5.66)          
 Period from 3/15/2000 to 9/30/2000             30.11           .08             (1.65)      (1.57)          
Class C:                                                                                                    
 Six months ended 3/31/2003          (2)        16.27          (.01)              .16         .15           
 Year ended 9/30/2002                           19.50           .03             (3.14)      (3.11)          
 Period from 3/15/2001 to 9/30/2001             22.42          (.01)            (2.83)      (2.84)          
Class F:                                                                                                    
 Six months ended 3/31/2003          (2)        16.49           .06               .16         .22           
 Year ended 9/30/2002                           19.72           .18             (3.16)      (2.98)          
 Period from 3/15/2001 to 9/30/2001             22.59           .10             (2.87)      (2.77)          
Class 529-A:                                                                                                
 Six months ended 3/31/2003          (2)        16.49           .07               .15         .22           
 Period from 2/15/2002 to 9/30/2002             21.05           .11             (4.67)      (4.56)          
Class 529-B:                                                                                                
 Six months ended 3/31/2003          (2)        16.41          (.02)              .15         .13           
 Period from 2/15/2002 to 9/30/2002             21.05           .02             (4.66)      (4.64)          
Class 529-C:                                                                                                
 Six months ended 3/31/2003          (2)        16.41          (.02)              .16         .14           
 Period from 2/15/2002 to 9/30/2002             21.05           .02             (4.66)      (4.64)          
Class 529-E:                                                                                                
 Six months ended 3/31/2003          (2)        16.47           .04               .15         .19           
 Period from 3/1/2002 to 9/30/2002              21.49           .08             (5.10)      (5.02)          
Class 529-F:                                                                                                
 Six months ended 3/31/2003          (2)        16.50           .07               .14         .21           
 Period from 9/17/2002 to 9/30/2002             17.65             - (4)         (1.15)      (1.15)          
Class R-1:                                                                                                  
 Six months ended 3/31/2003          (2)        16.45             - (4)           .15         .15           
 Period from 6/17/2002 to 9/30/2002             20.72           .01             (4.28)      (4.27)          
Class R-2:                                                                                                  
 Six months ended 3/31/2003          (2)        16.45           .02               .14         .16           
 Period from 5/21/2002 to 9/30/2002             21.95           .02             (5.52)      (5.50)          
Class R-3:                                                                                                  
 Six months ended 3/31/2003          (2)        16.49           .04               .15         .19           
 Period from 6/4/2002 to 9/30/2002              21.33           .04             (4.88)      (4.84)          
Class R-4:                                                                                                  
 Six months ended 3/31/2003          (2)        16.50           .07               .15         .22           
 Period from 5/28/2002 to 9/30/2002             21.86           .07             (5.43)      (5.36)          
Class R-5:                                                                                                  
 Six months ended 3/31/2003          (2)        16.52           .09               .16         .25           
 Period from 5/15/2002 to 9/30/2002             21.91           .09             (5.48)      (5.39)          

                                                   Dividends and distributions                              
                                            Dividends                                                       
                                            (from net   Distributions           Total   Net asset           
                                           investment   (from capital   dividends and  value, end     Total 
                                               income)          gains)  distributions   of period  return(5)
Class A:                                                                                                    
 Six months ended 3/31/2003          (2)        $(.17)             $-           $(.17)     $16.55     1.30% 
 Year ended 9/30/2002                            (.27)              -            (.27)      16.50    (15.36)
 Year ended 9/30/2001                            (.30)          (3.10)          (3.40)      19.74    (21.47)
 Year ended 9/30/2000                            (.11)          (2.34)          (2.45)      28.66     18.93 
 Year ended 9/30/1999                            (.20)          (1.57)          (1.77)      26.25     38.43 
 Year ended 9/30/1998                            (.31)          (1.21)          (1.52)      20.50      1.23 
Class B:                                                                                                    
 Six months ended 3/31/2003          (2)         (.04)              -            (.04)      16.38       .86 
 Year ended 9/30/2002                            (.16)              -            (.16)      16.28    (16.04)
 Year ended 9/30/2001                            (.25)          (3.10)          (3.35)      19.53    (22.06)
 Period from 3/15/2000 to 9/30/2000                 -               -               -       28.54     (5.21)
Class C:                                                                                                    
 Six months ended 3/31/2003          (2)         (.07)              -            (.07)      16.35       .89 
 Year ended 9/30/2002                            (.12)              -            (.12)      16.27    (16.05)
 Period from 3/15/2001 to 9/30/2001              (.08)              -            (.08)      19.50    (12.78)
Class F:                                                                                                    
 Six months ended 3/31/2003          (2)         (.18)              -            (.18)      16.53      1.24 
 Year ended 9/30/2002                            (.25)              -            (.25)      16.49    (15.41)
 Period from 3/15/2001 to 9/30/2001              (.10)              -            (.10)      19.72    (12.34)
Class 529-A:                                                                                                
 Six months ended 3/31/2003          (2)         (.19)              -            (.19)      16.52      1.29 
 Period from 2/15/2002 to 9/30/2002                 -               -               -       16.49    (21.66)
Class 529-B:                                                                                                
 Six months ended 3/31/2003          (2)         (.11)              -            (.11)      16.43       .76 
 Period from 2/15/2002 to 9/30/2002                 -               -               -       16.41    (22.04)
Class 529-C:                                                                                                
 Six months ended 3/31/2003          (2)         (.11)              -            (.11)      16.44       .82 
 Period from 2/15/2002 to 9/30/2002                 -               -               -       16.41    (22.04)
Class 529-E:                                                                                                
 Six months ended 3/31/2003          (2)         (.18)              -            (.18)      16.48      1.04 
 Period from 3/1/2002 to 9/30/2002                  -               -               -       16.47    (23.36)
Class 529-F:                                                                                                
 Six months ended 3/31/2003          (2)         (.18)              -            (.18)      16.53      1.18 
 Period from 9/17/2002 to 9/30/2002                 -               -               -       16.50     (6.52)
Class R-1:                                                                                                  
 Six months ended 3/31/2003          (2)         (.17)              -            (.17)      16.43       .81 
 Period from 6/17/2002 to 9/30/2002                 -               -               -       16.45    (20.61)
Class R-2:                                                                                                  
 Six months ended 3/31/2003          (2)         (.17)              -            (.17)      16.44       .84 
 Period from 5/21/2002 to 9/30/2002                 -               -               -       16.45    (25.01)
Class R-3:                                                                                                  
 Six months ended 3/31/2003          (2)         (.19)              -            (.19)      16.49      1.05 
 Period from 6/4/2002 to 9/30/2002                  -               -               -       16.49    (22.69)
Class R-4:                                                                                                  
 Six months ended 3/31/2003          (2)         (.20)              -            (.20)      16.52      1.22 
 Period from 5/28/2002 to 9/30/2002                 -               -               -       16.50    (24.52)
Class R-5:                                                                                                  
 Six months ended 3/31/2003          (2)         (.21)              -            (.21)      16.56      1.39 
 Period from 5/15/2002 to 9/30/2002                 -               -               -       16.52    (24.60)

                                                               Ratio of                 Ratio of            
                                            Net assets,        expenses         net income (loss)           
                                          end of period      to average               to average            
                                           (in millions)     net assets               net assets            
Class A:                                                                                                    
 Six months ended 3/31/2003          (2)        $19,867            .85% (7)          .68% (7)               
 Year ended 9/30/2002                            20,497             .82               .84                   
 Year ended 9/30/2001                            25,094             .78              1.40                   
 Year ended 9/30/2000                            33,412             .79              1.00                   
 Year ended 9/30/1999                            25,752             .77              1.06                   
 Year ended 9/30/1998                            17,707             .77              1.27                   
Class B:                                                                                                    
 Six months ended 3/31/2003          (2)            623            1.64 (7)          (.09)(7)               
 Year ended 9/30/2002                               579            1.60               .11                   
 Year ended 9/30/2001                               445            1.57               .60                   
 Period from 3/15/2000 to 9/30/2000                 260            1.53 (7)           .56 (7)               
Class C:                                                                                                    
 Six months ended 3/31/2003          (2)            322            1.68 (7)          (.12)(7)               
 Year ended 9/30/2002                               277            1.64               .14                   
 Period from 3/15/2001 to 9/30/2001                  87            1.76 (7)          (.06)(7)               
Class F:                                                                                                    
 Six months ended 3/31/2003          (2)            220             .89 (7)           .67 (7)               
 Year ended 9/30/2002                               189             .88               .89                   
 Period from 3/15/2001 to 9/30/2001                  60             .90 (7)           .84 (7)               
Class 529-A:                                                                                                
 Six months ended 3/31/2003          (2)             84             .85 (7)           .75 (7)               
 Period from 2/15/2002 to 9/30/2002                  55             .96 (7)           .95 (7)               
Class 529-B:                                                                                                
 Six months ended 3/31/2003          (2)             19            1.80 (7)          (.20)(7)               
 Period from 2/15/2002 to 9/30/2002                  12            1.76 (7)           .14 (7)               
Class 529-C:                                                                                                
 Six months ended 3/31/2003          (2)             24            1.78 (7)          (.18)(7)               
 Period from 2/15/2002 to 9/30/2002                  15            1.75 (7)           .16 (7)               
Class 529-E:                                                                                                
 Six months ended 3/31/2003          (2)              5            1.24 (7)           .40 (7)               
 Period from 3/1/2002 to 9/30/2002                    2            1.21 (7)           .67 (7)               
Class 529-F:                                                                                                
 Six months ended 3/31/2003          (2)              - (6)        1.00 (7)           .78 (7)               
 Period from 9/17/2002 to 9/30/2002                   - (6)           - (8)             - (8)               
Class R-1:                                                                                                  
 Six months ended 3/31/2003          (2)              1            1.67 (7),(9)       .02 (7)               
 Period from 6/17/2002 to 9/30/2002                   - (6)         .47 (9)           .04                   
Class R-2:                                                                                                  
 Six months ended 3/31/2003          (2)             29            1.63 (7),(9)       .18 (7)               
 Period from 5/21/2002 to 9/30/2002                   4             .58 (9)           .11                   
Class R-3:                                                                                                  
 Six months ended 3/31/2003          (2)             55            1.25 (7),(9)       .49 (7)               
 Period from 6/4/2002 to 9/30/2002                    5             .39 (9)           .21                   
Class R-4:                                                                                                  
 Six months ended 3/31/2003          (2)             11             .89 (7),(9)       .83 (7)               
 Period from 5/28/2002 to 9/30/2002                   1             .30 (9)           .36                   
Class R-5:                                                                                                  
 Six months ended 3/31/2003          (2)             64             .56 (7)           .99 (7)               
 Period from 5/15/2002 to 9/30/2002                  60             .20               .46                   

                                                        [Enlarge/Download Table]
                                                                                                        
                                                   Six months ended                                     
                                                          March 31,        Year ended September 30      
                                                            2003(2)  2002  2001     2000      1999  1998
Portfolio turnover rate for all classes of shares              12%    26%   32%      34%       29%   30%

(1) Based on operations for the period shown (unless otherwise noted) and,      
accordingly, may not be representative of a full year.                  
(2) Unaudited.                                                                  
(3) Years ended 1999 and 1998 are based on shares outstanding on the last day   
of the year; all other periods are based on average shares outstanding. 
(4) Amount less than one cent.                                                  
(5) Total returns exclude all sales charges, including contingent deferred      
sales charges.                                                          
(6) Amount less than 1 million.                                                 
(7) Annualized.                                                                 
(8) Amount less than .01 percent.                                               
(9) During the start-up period for this class, CRMC voluntarily agreed to pay a 
  portion of the fees relating to transfer agent services. Had CRMC not paid
    such fees, expense ratios would have been 2.26%, 2.27% and 0.92% for classes
   R-1, R-2 and R-4, respectively, during the six months ended March 31, 2003.
   The expense ratio for Class R-3 for the six months ended March 31, 2003 was
 not affected by payments made by CRMC. For the period ended September 30,
 2002, expense ratios would have been .91%, .74%,.45% and .41% for classes
R-1, R-2, R-3 and R-4 respectively.                                     

                                                        [Enlarge/Download Table]
                                                                                                                               
OTHER SHARE CLASS RESULTS                                                                                             unaudited

CLASS B, CLASS C, CLASS F AND CLASS 529                                                                                        
Returns for periods ended March 31, 2003:                                                                                      
                                                                                               1 YEAR             LIFE OF CLASS
CLASS B SHARES                                                                                                                 
Reflecting applicable contingent deferred sales charge                                                                         
     (CDSC), maximum of 5%, payable only if shares are sold                                                                    
     within six years of purchase                                                             -28.89%               -15.02%/1/ 
Not reflecting CDSC                                                                           -25.16%               -14.28%/1/ 

CLASS C SHARES                                                                                                                 
Reflecting CDSC, maximum of 1%, payable only if shares                                                                         
     are sold within one year of purchase                                                     -25.90%               -13.77%/2/ 
Not reflecting CDSC                                                                           -25.15%               -13.77%/2/ 

CLASS F SHARES/3/                                                                                                              
Not reflecting annual asset-based fee charged                                                                                  
     by sponsoring firm                                                                       -24.63%               -13.09%/2/ 

CLASS 529-A SHARES                                                                                                             
Reflecting 5.75% maximum sales charge                                                         -28.92%               -22.83%/4/ 
Not reflecting maximum sales charge                                                           -24.59%               -18.65%/4/ 

CLASS 529-B SHARES                                                                                                             
Reflecting applicable CDSC, maximum of 5%,                                                                                     
     payable only if shares are sold within six years of purchase                             -29.00%               -22.25%/4/ 
Not reflecting CDSC                                                                           -25.29%               -19.39%/4/ 

CLASS 529-C SHARES                                                                                                             
Reflecting CDSC, maximum of 1%, payable only                                                                                   
     if shares are sold within one year of purchase                                           -25.98%               -19.34%/4/ 
Not reflecting CDSC                                                                           -25.24%               -19.34%/4/ 

CLASS 529-E SHARES/3/                                                                                                          
Total return                                                                                  -24.87%               -21.05%/5/ 

CLASS 529-F SHARES/3/                                                                                                          
Total return                                                                                       --                -5.42%/6/ 

/1/Average annual compound return from March 15, 2000, when Class B shares were first sold.                                    
/2/Average annual compound return from March 15, 2001, when Class C and Class F shares were first sold.                        
/3/These shares are sold without any initial or contingent deferred sales charge.                                              
/4/Average annual compound return from February 15, 2002, when Class 529-A, Class 529-B and Class 529-C shares were first sold.
/5/Average annual compound return from March 1, 2002, when Class 529-E shares were first sold.                                 
/6/From September 17, 2002, when Class 529-F shares were first sold.                                                           


RESULTS OF MEETING OF SHAREHOLDERS                                   unaudited  
Held March 13, 2003 (adjourned session April 23, 2003)                          

Shares outstanding (all classes) on record date                                 
(December 27, 2002)                                1,311,377,151      
Shares present on March 13, 2003 (proposals 1 and 3)      823,066,053  (62.8%)  
Shares present on April 23, 2003 (proposals 2a and 2b)    656,250,280  (50.1%)  

PROPOSAL 1: ELECTION OF DIRECTORS                                               

                                                                [Download Table]
                                                                        
                                   Percent of                 Percent of
                                     shares      Votes          shares  
Director            Votes for      voting for  withheld        withheld 
Elisabeth Allison     811,141,007     98.6%       11,925,046     1.4%   
Vanessa C.L. Chang    810,921,156     98.5        12,144,897     1.5    
Gina H. Despres       811,211,075     98.6        11,854,978     1.4    
Robert A. Fox         810,325,117     98.5        12,740,936     1.5    
Paul G. Haaga, Jr.    810,707,062     98.5        12,358,991     1.5    
Jae H. Hyun           810,508,839     98.5        12,557,214     1.5    
Gregg E. Ireland      811,283,637     98.6        11,782,416     1.4    
Koichi Itoh           810,989,057     98.5        12,076,996     1.5    
William H. Kling      810,764,286     98.5        12,301,767     1.5    
John G. McDonald      809,828,663     98.4        13,237,390     1.6    
William I. Miller     811,306,480     98.6        11,759,573     1.4    
Kirk P. Pendleton     810,740,744     98.5        12,325,309     1.5    
Rozanne L. Ridgway    809,975,018     98.4        13,091,035     1.6    
Walter P. Stern       810,389,769     98.5        12,676,284     1.5    

PROPOSAL 2: APPROVAL OF THE REVISION OF CERTAIN OF THE FUND'S FUNDAMENTAL       
INVESTMENT POLICIES                                                             

a) Revise policy regarding lending activities                                   
b) Revise policy regarding borrowing and senior securities                      

PROPOSAL 3: RATIFICATION OF ACCOUNTANTS                                         

                                                        [Enlarge/Download Table]
                                                                                                                   
                                           Percent of                        Percent of                  Percent of
                                             shares             Votes       shares voting                  shares  
                           Votes for       voting for          against         against     Abstentions   abstaining

Proposal      2a             441,129,208       85.3%            36,176,402       7.0%        39,729,698     7.7%   
              2b             440,050,339       85.1             37,399,379       7.2         39,585,590     7.7    
Proposal      3              801,600,990       97.4              7,339,545       0.9         14,125,518     1.7    

(Broker non-votes on proposals 2a and 2b  = 139,214,972 shares)                                                    

[logo - American Funds(R)]                                                      

The right choice for the long termSM                                            

OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER                               
Capital Research and Management Company                                         
333 South Hope Street                                                           
Los Angeles, CA 90071-1406                                                      

135 South State College Boulevard                                               
Brea, CA 92821-5823                                                             

Transfer agent for shareholder accounts                                         
American Funds Service Company                                                  
(Please write to the address nearest you.)                                      

P.O. Box 25065                                                                  
Santa Ana, CA 92799-5065                                                        

P.O. Box 659522                                                                 
San Antonio, TX 78265-9522                                                      

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                                                                         
Kirkpatrick & Lockhart LLP                                                      
Four Embarcadero Center                                                         
San Francisco, CA 94111-4121                                                    

INDEPENDENT ACCOUNTANTS                                                         
PricewaterhouseCoopers LLP                                                      
350 South Grand Avenue                                                          
Los Angeles, CA 90071-3405                                                      

PRINCIPAL UNDERWRITER                                                           
American Funds Distributors, Inc.                                               
333 South Hope Street                                                           
Los Angeles, CA 90071-1406                                                      

There are several  ways to invest in New  Perspective  Fund.  Class A shares are
subject to a 5.75% maximum  up-front  sales charge that declines for accounts of
$25,000 or more.  Other share  classes,  which are  generally  not available for
certain employer-sponsored  retirement plans, have no up-front sales charges but
are subject to additional  annual expenses and fees. Annual expenses for Class B
shares  were 0.78%  higher  than for Class A shares;  Class B shares  convert to
Class A shares  after eight years of  ownership.  If redeemed  within six years,
Class B shares may also be subject to a contingent  deferred sales charge (CDSC)
of up to 5% that  declines  over  time.  Class C shares  were  subject to annual
expenses  0.82%  higher  than those for Class A shares and a 1% CDSC if redeemed
within the first year after  purchase.  Class C shares convert to Class F shares
after 10  years.  Class F shares,  which  are  available  only  through  certain
fee-based  programs  offered by  broker-dealer  firms and registered  investment
advisers,  had higher annual expenses (by 0.06%) than did Class A shares, and an
annual  asset-based  fee charged by the sponsoring  firm.  Expenses are deducted
from income earned by the fund. As a result,  dividends and  investment  results
will differ for each share class.                                               

FOR  INFORMATION  ABOUT YOUR  ACCOUNT OR ANY OF THE  FUND'S  SERVICES,  OR FOR A
PROSPECTUS FOR ANY OF THE AMERICAN FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISER.
YOU MAY ALSO CALL AMERICAN FUNDS SERVICE  COMPANY AT 800/421-0180 OR VISIT US AT
AMERICANFUNDS.COM.  PLEASE READ THE  PROSPECTUS  CAREFULLY  BEFORE YOU INVEST OR
SEND MONEY.                                                                     

This report is for the information of shareholders of New Perspective  Fund, but
it may also be used as sales  literature  when  preceded or  accompanied  by the
current  prospectus,  which gives details about  charges,  expenses,  investment
objectives  and operating  policies of the fund. If used as sales material after
June 30, 2003, this report must be accompanied by an American Funds  statistical
update for the most recently completed calendar quarter.                        

THE CAPITAL GROUP COMPANIES                                                     

American Funds                                                                  
Capital Research and Management                                                 
Capital International                                                           
Capital Guardian                                                                
Capital Bank and Trust                                                          

Lit. No. NPF-013-0503                                                           
Litho in USA DD/GRS/6164                                                        

Printed on recycled paper                                                       

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-30D’ Filing		Date		Other Filings
		9/30/03		24F-2NT,  N-CSR,  NSAR-B
		6/30/03
Filed on / Effective on:		6/10/03
		5/9/03		497
		4/23/03
For Period End:		3/31/03		NSAR-A
		3/13/03		DEF 14A,  PRE 14A
		12/27/02
		9/30/02		24F-2NT,  N-30D,  NSAR-B
		9/17/02
		5/15/02		485BPOS
		3/1/02
		2/15/02		485BPOS
		3/15/01		485BPOS
		3/15/00
				List all Filings