New Perspective Fund – ‘N-30D’ for 9/30/98

As of:  Thursday, 12/10/98   ·   For:  9/30/98   ·   Accession #:  71516-98-18   ·   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                47±   172K 
                          Shareholders                                           


[THE AMERICAN FUNDS GROUP(R)]                                                   

[front and back cover:  Photographs of New Perspective Fund's annual report     
covers from 1973 through 1997]                                                  

25 YEARS OF GLOBAL INVESTING                                                    

NEW PERSPECTIVE FUND                                                            

ANNUAL REPORT                                                                   
FOR THE YEAR ENDED SEPTEMBER 30, 1998                                           

NEW PERSPECTIVE FUND(R) seeks long-term growth of capital through investments   
all over the world, including the United States.                                

New Perspective is one of the 28 mutual funds in The American Funds Group,(r)   
managed by Capital Research and Management Company. Since 1931, Capital has     
invested with a long-term focus based on thorough research and attention to     
risk.                                                                           

RESULTS AT A GLANCE                                                             

                                                                [Download Table]

FISCAL 1998                                                        

(for the year ended                                                

September 30, 1998)                                                

                        Total return          Capital return       

                        including dividends)  (excluding dividends)

                                                                   
New Perspective Fund    +1.2%                 -0.2%                

Morgan Stanley Capital                                             

International Indexes:                                             

  World Index           +0.5%                 -1.2%                

  USA Index             +11.0%                +9.3%                


---                                                                             

                                                                [Download Table]

LIFETIME OF THE FUND                                                           

(from March 13, 1973,                                                          

through September                                                              

30, 1998)                                                                      

                        Total return                 Capital return            

                        (including dividends)        (excluding dividends)     

                        cumulative       annualized  cumulative      annualized

                                                                               

New Perspective Fund    +3,130.6%        +14.6%      +1,515.0%       +11.5%    

Morgan Stanley Capital                                                         

International Indexes:                                                         

  World Index           +1,546.6%        +11.6%      +610.9%         +8.0%     

  USA Index             +2,116.6%        +12.9%      +730.7%         +8.6%     


The indexes are unmanaged.                                                      

FIGURES SHOWN ARE PAST 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 PROSPECTUS.                                                     

[Begin Caption]                                                                 
ABOUT OUR COVER: A 25-year retrospective of New Perspective Fund's annual       
report covers.                                                                  
[End Caption]                                                                   

FELLOW SHAREHOLDERS:                                                            

In a challenging investment climate for world markets, New Perspective Fund     
recorded a small gain for the 12 months ended September 30. The value of your   
holdings rose 1.2% if you reinvested the two income dividends totaling 31 cents 
a share and the capital gain distribution of $1.21 a share that were paid       
during the year.                                                                

By comparison, the unmanaged Morgan Stanley Capital International (MSCI) World  
Index, which measures 23 major stock markets including the United States, rose  
0.5% with dividends reinvested. Over the same period, the 201 global equity     
funds tracked by Lipper Analytical Services declined an average of 7.6% on a    
reinvested basis, placing New Perspective in the top 15% of its universe.       

The fund also did well over other periods. It ranked first among the five       
global funds in existence since it began 25 years ago, second of 20 funds over  
the past 10 years and eighth of 62 funds for the latest five years.             

As the table on the left shows, New Perspective Fund has successfully met its   
objective of long-term growth of capital. Despite a slight capital loss for the 
past 12 months, the fund's value excluding income has increased 1,515.0% over   
its 25-year lifetime, significantly higher than the market indexes against      
which it is measured. The impact of compounding reinvested dividends was        
considerable. The fund's lifetime return with all distributions reinvested was  
twice as high: 3,130.6%.                                                        

A STUDY IN CONTRASTS                                                            

The 12 months ended September 30 coincided with extraordinary volatility in     
world markets. Investor sentiment swung from pessimism to hope to pessimism     
again as Asia's ongoing difficulties and turmoil in Russia and Latin America    
made it increasingly clear that there would be no quick fix for the problems    
crippling many of the world's developing nations. As demand in those regions    
contracted, many global businesses saw their profit margins squeezed and the    
prospect of lower earnings ahead. Stock prices fell commensurately.             

For a number of markets, early gains more than offset the steep declines        
experienced in late summer. In the U.S., where roughly one third of the fund's  
net assets are invested, a robust economy boosted consumer confidence, helping  
to push stock prices 11.0% higher for the 12 months. Most European markets      
gained ground as well, fueled by a wave of mergers and generally strong         
corporate profits. Italy, Germany and France, for example, increased 24.6%,     
15.9% and 14.8%, respectively, although markets in the Netherlands (-0.2%) and  
Sweden (-11.2%) declined in value. (Market returns are based on MSCI indexes    
and expressed in dollar terms, with dividends reinvested.)                      

The fund also had investments in Asian markets, which, by contrast, fared       
poorly across the board. Many economies are in recession, and Japan's repeated  
attempts to stimulate a recovery have been thwarted by a virtual collapse of    
its banking system. Stocks in Japan slid 33.4% in dollar terms and are          
currently at levels not seen since 1986. Hong Kong fell 47.1%, while Canada, a  
major trading partner with Asia, dropped 22.6%. Although the fund was not       
immune to the declines in Asian markets - they represent about 9% of net assets 
- stock prices in many cases dropped to a range we found quite attractive, and  
we took the opportunity to add selectively to our holdings.                     

[Begin Sidebar]                                                                 

[photograph: globe]                                                             

Where New Perspective's Assets Were Invested                                    
percent invested by country                                                     

                                                                [Download Table]

                          9/30/97                    9/30/98

                                                            
ASIA/PACIFIC RIM          12.0%                      8.7%   

Japan                     5.6                        5.0    

Australia                 3.4                        2.6    

Hong Kong                 1.6                        .7     

New Zealand               .8                         .3     

South Korea               .1                         .1     

Taiwan                    .5                         -      

EUROPE                    31.9%                      32.5%  

United Kingdom            6.5                        6.7    

France                    5.6                        5.8    

Germany                   2.4                        5.1    

Sweden                    4.2                        3.7    

Netherlands               3.6                        2.9    

Switzerland               3.1                        2.5    

Finland                   1.6                        2.2    

Spain                     2.0                        1.6    

Italy                     1.8                        1.1    

Denmark                   .4                         .6     

Norway                    .6                         .2     

Luxembourg                .1                         .1     

NORTH AMERICA             41.1%                      40.3%  

United States             33.8                       34.3   

Canada                    5.8                        4.9    

Mexico                    1.5                        1.1    

OTHER                     3.6%                       2.8%   

CASH & EQUIVALENTS        11.4%                      15.7%  

                          100.0%                     100.0% 


[End Sidebar]                                                                 

A FOCUS ON INDIVIDUAL COMPANIES                                                 

Although broad market movements can have a significant impact on short-term     
results, New Perspective's investment focus has always been squarely on the     
long-term prospects of individual companies. As we have frequently mentioned,   
geographic concentrations are the result of individual decisions about specific 
companies rather than particular areas.                                         

Given our emphasis on companies rather than countries, we are pleased to note   
that many of the fund's largest holdings not only gained ground during the      
year, but also outpaced the overall markets in which they are located. As the   
table at right shows, eight of the 10 largest holdings appreciated in price.    
These included the fund's largest investment, Pfizer, as well as Viacom,        
Mannesmann and Time Warner. On the other side of the ledger, Astra and Micron   
Technology were the only two of the 10 that declined.                           

Regardless of the size of an investment, every decision is based on intensive,  
ongoing global research. This analytical approach leads to broad                
diversification. On September 30, New Perspective was invested in 222 companies 
based in 25 countries. About 16% of net assets were held in cash and            
equivalents as a future buying reserve.                                         

DIVERSE INDUSTRIES                                                              

The fund has a fairly heavy concentration in telecommunications-related firms.  
Many are rapidly expanding the borders of their operations, taking advantage of 
worldwide deregulation, alliances with other companies and advances in digital  
technology. These developments have helped boost the fortunes of such companies 
as Mannesmann, British Telecom (+101.2%), Nokia (+67.2%), AirTouch (+60.8%),    
Deutsche Telekom (+60.1%) and Sprint (+44.0%). Telefonica, a major holding, had 
increased nearly 40% in the first half of the year but suffered in the second   
half from its exposure in Latin America; nonetheless, it was up 15.6% for the   
12 months.                                                                      

Globalization had a decidedly less salutary effect on financial services        
companies during the year, particularly those based in, or exposed to,          
developing markets. Many of these firms, which had made strong contributions to 
results in the past, were hurt by the spate of currency crises and other        
problems that spread from Southeast Asia to Russia and Brazil. These included   
ING (-2.2%), Westpac (-11.8%) and the Bank of Nova Scotia (-31.6%), which saw   
their sharpest declines in the last few months of the fiscal year.              

[begin side bar]                                                                

[photograph:  globe]                                                            

NEW PERSPECTIVE FUND VS. THE MAJOR WORLD INDEXES                                

                                                        [Enlarge/Download Table]

                                               EXCLUDING DIVIDENDS                            

                              LATEST FISCAL YEAR                    LIFETIME OF THE FUND      

MAJOR WORLD STOCK MARKETS/1/  (10/1/97-9/30/98)                     (3/13/73-9/30/98)         

(in order of market           Local                    Adjusted to  Local          Adjusted to
capitalization,                                                                               

as of (9/30/98)               currency                 U.S.$/3/     currency       U.S.$/3/   

                                                                                              
United States                                                                                 

MSCI USA Index                -                        9.3%         -              730.7%     

United Kingdom                -4.3%                    0.7          1,193.3%       789.9      

Japan                         -25.6                    -34.0        203.9          478.4      

Germany                       8.2                      14.4         544.6          981.2      

France                        6.8                      13.1         825.6          639.4      

Switzerland                   2.0                      7.0          553.0          1,429.3    

Netherlands                   -7.6                     -2.5         862.0          1,349.2    

Canada                        -16.2                    -24.0        348.1          193.4      

Italy                         17.5                     22.7         1,217.9        350.6      

Hong Kong                     -49.7                    -49.7        306.6          167.4      

Australia                     -3.5                     -21.1        592.2          189.9      

Spain                         7.7                      13.1         305.1          63.3       

Sweden                        -9.8                     -12.7        3,578.0        1,969.9    

Belgium                       30.0                     37.3         590.4          665.1      

Singapore                     -45.2                    -50.2        24.1           84.2       

MSCI World Index/4/           -                        -1.2         -              610.9      

NEW PERSPECTIVE FUND          -                        - 0.2%       -             1,515.0%    


---                                                                             

                                                        [Enlarge/Download Table]

                                          INCLUDING DIVIDENDS/2/                        

                      LATEST FISCAL YEAR                      LIFETIME OF THE FUND      

                      (10/1/97-9/30/98)                       (3/13/73-9/30/98)         

                      Local                  Adjusted to      Local          Adjusted to

                      currency               U.S.$/3/         currency       U.S.$/3/   

                                                                                        
United States                                                                           

MSCI USA Index        -                      11.0%            -              2,116.6%   

United Kingdom        -1.7%                  3.4              3,922.5%       2,724.6    

Japan                 -24.9                  -33.4            321.5          718.3      

Germany               9.7                    15.9             1,233.1        2,173.3    

France                8.4                    14.8             2,453.6        1,821.3    

Switzerland           3.1                    8.2              1,143.9        2,733.1    

Netherlands           -5.5                   -0.2             3,648.1        5,338.3    

Canada                -14.6                  -22.6            996.8          609.3      

Italy                 19.3                   24.6             2,503.8        773.7      

Hong Kong             -47.0                  -47.1            1,055.6        667.2      

Australia             -0.3                   -18.5            2,078.7        791.6      

Spain                 9.8                    15.3             1,988.6        742.8      

Sweden                -8.3                   -11.2            8,482.6        4,674.1    

Belgium               33.4                   41.0             3,041.5        3,401.3    

Singapore             -44.1                  -49.2            153.6          212.5      

MSCI World Index/4/   -                      0.5              -              1,546.6    

NEW PERSPECTIVE FUND  -                      1.2%             -              3,130.6%   


/1/ United States market represented by the U.S. component of MSCI World Index; 
all other markets computed by Capital International Perspective S.A. and        
included in MSCI World Index. All indexes are unmanaged.                        
/2/ Returns are with gross dividends reinvested, i.e., without withholding      
taxes removed.                                                                  
/3/ Figures adjusted to reflect foreign exchange fluctuations relative to the   
U.S. dollar.                                                                    
/4/ Includes the major stock markets throughout the world, weighted by size and 
adjusted to reflect foreign exchange fluctuation relative to the U.S. dollar.   
U.S. companies currently represent approximately 51% of the total index.        
New Perspective's 10 Largest Stock Holdings at Fiscal Year-End (as of 9/30/98)  

[photograph:  globe]                                                            

                                                                [Download Table]

                    % OF NPF'S                          % PRICE CHANGE      

COMPANY             NET ASSETS        COUNTRY           FROM 10/1/97-9/30/98

                                                                            
Pfizer              2.9%              U.S.              +76.4%              

Time Warner         2.6               U.S.              +61.6               

Philip Morris       2.4               U.S.              +10.8               

Astra               2.1               Sweden            -7.4                

Viacom              2.0               U.S.              +83.4               

Nokia               2.0               Finland           +67.2               

Mannesmann          2.0               Germany           +91.7               

Novartis            1.8               Switzerland       +4.6                

Telefonica          1.5               Spain             +15.6               

Micron Technology   1.3               U.S.              -12.3               


[end side bar]                                                                  

GROWING OPPORTUNITIES                                                           

New Perspective Fund has experienced remarkable growth since it began in March  
of 1973. Today, at $17.7 billion in assets, it is the nation's largest global   
growth fund and, at 25 years, one of the oldest. Shareholder accounts recently  
topped one million, and include a diverse group of individuals, foundations and 
corporate retirement plans. We are grateful for the confidence that so many of  
you have placed in us.                                                          

New Perspective's method of portfolio management, the multiple portfolio        
counselor system, is well-suited to accommodating this kind of growth. Because  
the fund's assets are divided among a number of portfolio counselors, managers  
can be added as assets increase. The fund currently has five primary portfolio  
counselors with an aggregate of 140 years of experience among them, and a       
research portfolio managed by 40 analysts.                                      

The multiple portfolio counselor system has another benefit. By encouraging a   
diversity of investment styles, this strategy has helped us moderate risk by    
smoothing out returns over time. It is one of the reasons why New Perspective   
Fund has been able to provide shareholders with strong participation in rising  
markets and considerable downside resistance.                                   

LOOKING FORWARD AND BACK                                                        

It may be difficult to imagine now, but when we introduced New Perspective Fund 
25 years ago, the notion of a fund with the flexibility to search the world for 
promising investment opportunities was a novel one, regarded skeptically by     
many investors.                                                                 

Now, a quarter century later, thanks to a great deal of hard work and good      
judgment on the part of many people, we can look back and say that our          
shareholders have met with considerable success. Over its lifetime, New         
Perspective Fund has done better than nearly every major market in the world,   
including the U.S. As we noted earlier, it has also compared very favorably     
with other funds in its universe.                                               

A 25-year history also provides the luxury of developing a meaningful           
perspective on the investment landscape. What we have seen is that, although    
market movements are notoriously unpredictable, solid, well-managed companies   
have tended to provide long-term rewards for their shareholders. That is why    
our attention has always been focused on finding those companies, getting to    
know them very, very well and investing in the best of them on your behalf.     

On the following pages, we invite you to look back at the last quarter century  
with some of the people who have been responsible for New Perspective Fund's    
success.                                                                        

We look forward to reporting to you again in six months.                        

Cordially,                                                                      

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

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

November 17, 1998                                                               

[photograph:  watch]                                                            

HERE'S HOW A $10,000 INVESTMENT IN THE FUND GREW between March 13, 1973 - when  
the fund was introduced - and September 30, 1998 - the end of the fund's latest 
fiscal year. Unlike figures presented earlier in the report, the fund's results 
in this chart reflect payment of the maximum sales charge of 5.75%, so the net  
amount invested was $9,425, vs. $10,000 in the indexes shown. The indexes are   
unmanaged and do not have sales charges, commissions or expenses. As you can    
see, the investment in New Perspective would have grown to $304,530 with        
dividends reinvested, vs. $164,657 in the Morgan Stanley Capital International  
(MSCI) World Index, which reflects results in 23 major markets, and $221,657 in 
the MSCI USA Index.                                                             

New Perspective's year-by-year results appear in the table under the chart. The 
table shows that NPF recorded positive results in 22 of these 26 periods, and   
the boxed figure at the bottom right of the table shows that over the entire    
25-1/2 years the investment grew at an average compound rate of 14.3% a year.   
You can use this table to estimate how much the value of your own holdings has  
grown. Let's say, for example, that you have been reinvesting all your          
dividends and capital gain distributions and want to know how your investment   
has done since September 30, 1988. At that time, according to the table, the    
value of the investment illustrated here was $81,233. Since then, it has more   
than tripled to $304,530. Thus, in that same period, the value of your          
investment - regardless of size - also has more than tripled.                   

HOW A $10,000 INVESTMENT HAS GROWN                                              

NPF'S RETURN VS. OTHER GLOBAL EQUITY FUNDS                                      
(with distributions reinvested for periods ended September 30, 1998)            

New Perspective Fund has done significantly better than most other similar      
mutual funds. Over its lifetime, the fund ranked first among the five global    
equity funds in existence over this 251/2-year span, according to Lipper        
Analytical Services. Here is how the fund ranked over other time periods:       

*  10 years:Second out of 20 global equity funds                                
*  5 years:Eighth out of 62 global equity funds                                 
*  1 year:29th out of 201 global equity funds                                   

Lipper rankings are based on total return and do not reflect the effect of      
sales charges.                                                                  

$304,530/1,2/                                                                   
New Perspective Fund                                                            
with dividends                                                                  
reinvested                                                                      

$221,657                                                                        
MSCI USA Index                                                                  
with dividends                                                                  
reinvested                                                                      

$164,657                                                                        
MSCI World Index                                                                
with dividends                                                                  
reinvested                                                                      

$152,236                                                                        
New Perspective Fund                                                            
with dividends                                                                  
in cash                                                                         

$10,000/1/                                                                      
original investment                                                             

AVERAGE ANNUAL COMPOUND RETURNS*                                                
(for periods ended September 30, 1998)                                          
10 Years         +13.45%                                                        
5 Years          +12.88%                                                        
1 Year           -4.58%                                                         

*Assumes reinvestment of all distributions and payment of 5.75% sales charge at 
the beginning of the stated periods.                                            

[begin mountain chart]                                                          

                                                                [Download Table]

           New                                                      

           Perspective                                              

Year       Fund                               MSCI USA    MSCI World

ended      TOTAL VALUE                        Index with  Index with

September  Dividends    Value at      Total   dividends   dividends 

30         Reinvested   year-end/1/   Return  reinvested  reinvested

                                                                    
1973#      -            $9,938        (0.6)%  9,644       9,496     

1974       $325         7,402         (25.5)  5,796       5,886     

1975       401          10,769        45.5    7,954       7,647     

1976       337          12,720        18.1    10,379      9,328     

1977       280          13,050        2.6     9,925       9,685     

1978       318          17,342        32.9    10,953      11,895    

1979       444          20,100        15.9    12,042      13,362    

1980       501          24,866        23.7    14,200      15,945    

1981       931          25,315        1.8     13,948      14,919    

1982       1,667        27,151        7.3     15,458      15,314    

1983       1,830        39,093        44.0    22,064      21,629    

1984       1,205        39,494        1.0     23,019      22,861    

1985       1,196        45,578        15.4    26,527      28,617    

1986       1,178        63,273        38.8    34,776      45,581    

1987       1,393        94,727        49.7    49,353      65,809    

1988       1,820        81,233        (14.2)  42,818      61,905    

1989       2,605        103,968       28.0    56,868      77,872    

1990       2,617        98,896        (4.9)   52,008      61,430    

1991       2,979        122,493       23.9    68,580      76,958    

1992       2,524        132,337       8.0     76,198      76,629    

1993       2,172        156,604       18.3    86,165      92,637    

1994       2,231        176,345       12.6    89,637      100,116   

1995       2,813        209,200       18.6    117,232     115,102   

1996       4,129        231,461       10.6    142,355     131,445   

1997       4,365        300,835       30.0    199,607     163,819   

1998       4,388        304,530/1,2/  1.2     221,657     164,657   


[end chart]                                                                     

                                                        [Enlarge/Download Table]

                                                                                      
Year ended September 30  1993#    1974     1975     1976     1977     1978     1979   

New Perspective Fund                                                                  

Total Value                                                                           

Dividends reinvested     --        $325     401      337      280      318      444   

Value at year-end/1/     $9,938   7,402    10,769   12,720   13,050   17,342   20,100 

Total Return             (0.6)%   (25.5)   45.5     18.1     2.6      32.9     15.9   

Year ended September 30  1980     1981     1982     1983     1984     1985     1986   

New Perspective Fund                                                                  

Total Value                                                                           

Dividends reinvested     501      931      1,667    1,830    1,205    1,196    1,178  

Value at year-end/1/     24,866   25,315   27,151   39,093   39,494   45,578   63,273 

Total Return             23.7     1.8      7.3      44.0     1.0      15.4     38.8   

Year ended September 30  1987     1988     1989     1990     1991     1992     1993   

New Perspective Fund                                                                  

Total Value                                                                           

Dividends reinvested     1,393    1,820    2,605    2,617    2,979    2,524    2,172  

Value at year-end/1/     94,727   81,233   103,968  98,896   122,493  132,337  156,604

Total Return             49.7     (14.2)   28.0     (4.9)    23.9     8.0      18.3   

Year ended September 30  1994     1995     1996     1997     1998                     

New Perspective Fund                                                                  

Total Value                                                                           

Dividends reinvested     2,231    2,813    4,129    4,365    4,388                    

Value at year-end/1/     176,345  209,200  231,461  300,835  304,530                  

Total Return             12.6     18.6     10.6     30.0     1.2                      


Average annual compound return for 25-1/2 years 14.3%/1/                        

# For the period March 13, 1973 (commencement of operations), through September 
30, 1973.                                                                       

/1/These figures, unlike those shown elsewhere in this report report, reflect   
payment of the maximum sales charge of 5.75% on the $10,000 investment. Thus,   
the net amount invested was $9,425. As outlined in the prospectus, the sales    
charge is reduced for larger investments. The maximum initial sales charge was  
8.5% prior to July 1, 1988. There is no sales charge on dividends or capital    
gain distributions that are reinvested in additional shares. No adjustment has  
been made for income or capital gain taxes.                                     

/2/Includes reinvested dividends of $44,649 and reinvested capital gain         
distributions of $96,895. Past results are not predictive of future results.    

[Begin Caption]                                                                 
Jon Lovelace                                                                    
Founding President, 1973                                                        
[End Caption]                                                                   

[Begin Caption]                                                                 
Thierry Vandeventer (left)                                                      
Research visit   Japan 1979                                                     
[End Caption]                                                                   

[Begin Caption]                                                                 
Darcy Kopcho (left)                                                             
Research visit   France 1995                                                    
[End Caption]                                                                   

[photographs:  watches and globe]                                               

CONSISTENCY IN THE MIDST OF CHANGE                                              

LOOKING BACK AT NEW PERSPECTIVE FUND'S FIRST QUARTER CENTURY                    

In our first report to shareholders we made the following observation:          

"...World events are setting into motion major new trends that signal           
significant changes in international economic and political                     
relationships....New trade patterns will generate fresh opportunities for many  
companies, industries and nations; reduce the potential for others; and in the  
process require new investment perspectives."                                   

This forecast was indeed an accurate one, but we could not have anticipated the 
degree to which world events would transform the investment landscape. In the   
decades that followed, military conflicts, economic recessions, gyrating oil    
prices, political upheavals and skyrocketing inflation all roiled financial     
markets. At the same time, the ensuing quarter century also brought with it the 
flourishing of free trade, the spread of economic freedoms, the birth of new    
markets and industries, technological innovation and a wide acceptance of the   
concept of investing around the world.                                          

New Perspective Fund began life with an underwriting of $160 million, one of    
the largest in the mutual fund industry up to that time. The fund's objective   
was growth of capital, but with a somewhat unusual mandate: to seek out         
companies that appeared likely to profit from changes in international trade    
and in economic and political relationships.                                    

Initially, at least, the fund would focus on U.S. companies with such           
international capabilities, but it could invest up to one-third of its assets   
in other countries. Gradually, that limit was expanded. Although the U.S. has   
consistently remained its largest market, today New Perspective's investment    
universe is truly global, with the flexibility to hold any proportion of assets 
anywhere in the world.                                                          

Over the years, our global presence has broadened to accommodate the scope of   
New Perspective's universe. In 1973, the fund's investment adviser had only one 
of its four research offices abroad. Today, Capital Research and Management     
Company and its subsidiary operate offices out of nine cities, including two in 
Europe and three in Asia. This far-flung network is supported by more than 100  
analysts and portfolio counselors who conduct thousands of research visits a    
year, following companies in dozens of industries and identifying their         
potential value as long-term investments. They build a broad base of knowledge  
about these companies by communicating with each other, sharing insights,       
information and ideas. That interchange helps them build a truly global         
perspective.                                                                    

New Perspective also benefits from the international expertise of its Advisory  
Board and Board of Directors, which are made up of individuals who are          
knowledgeable about economic, political and social conditions around the world. 

Regardless of changes that shape world markets, one thing has remained          
consistent: New Perspective Fund's time-tested investment approach. We invest   
for the long term, making decisions on the basis of thorough research and       
careful attention to risk. Using a company-by-company strategy, we seek         
businesses with strong fundamentals whose stocks are selling at reasonable      
prices. We employ a multiple portfolio counselor system that has helped deliver 
a diversity of styles to our decision-making and consistency to our results. If 
that philosophy has occasionally made us seem out of step with the pack, it has 
served us - and our shareholders - very well over the long run.                 

[Begin Caption]                                                                 
An anniversary year is an appropriate occasion to review past accomplishments   
and look forward to new endeavors. On the following pages, we'll highlight      
three years in New Perspective Fund's 25-year history: 1973, the year the fund  
was introduced; 1985, the midpoint of our quarter century; and 1998, on the     
threshold of the future.                                                        
[End Caption]                                                                   

25 YEARS OF GLOBAL INVESTING                                                    

[photograph:  globe]                                                            

[Begin Side Bar]                                                                
1973: A Snapshot                                                                
(as of 9/30/73)                                                                 

10 LARGEST HOLDINGS                                                             
Atlantic Richfield                                                              
Sperry Rand                                                                     
National Semiconductor                                                          
Communications Satellite                                                        
Marathon Oil                                                                    
Alcan Aluminium                                                                 
Standard Oil of California                                                      
Zenith Radio                                                                    
Texaco                                                                          
Kerr-McGee                                                                      

LARGEST INDUSTRIES                                                              
Petroleum                                                                       
Metals                                                                          
Consumer Electrical/Electronic                                                  
Electronic Components                                                           
Data Processing                                                                 

FUND NET ASSETS                                                                 
$163 million                                                                    

WORLD MARKET                                                                    
CAPITALIZATION                                                                  
$1.4 trillion                                                                   
(Source: MSCI World Index)                                                      
[End Side Bar]                                                                  

[Begin Caption]                                                                 
1973                                                                            
Walter Stern                                                                    
Founding Chairman   New York                                                    
[End Caption]                                                                   

[photograph:  globe]                                                            

1973                                                                            
NEW PERSPECTIVE FUND IS BORN                                                    

Negotiating the rocky terrain of 1973-1974 was a daunting enterprise. In March, 
the month New Perspective Fund began, President Nixon imposed new price         
controls in an effort to restrain inflation. The following October, war in the  
Middle East touched off an oil crisis: As petroleum prices doubled, inflation   
galloped higher and the U.S. economy contracted sharply. Compounding these      
difficulties were the unsettling repercussions of the Watergate scandal. These  
shocks aggravated a steep, protracted market decline that would ultimately drag 
down U.S. stock prices some 48% from their high in mid-January 1973 to their    
low in early October 1974. Concerns about Watergate and the international       
situation led us to maintain a fairly cautious stance during our first fiscal   
year.                                                                           

At the same time, the convergence of other forces and lower stock prices gave   
rise to extraordinary opportunities. Many of the world's economies,             
particularly those in the Pacific Basin, were on the cusp of rapid growth.      
These  countries were not only becoming major trading partners with the U.S.,   
they were nurturing vital businesses in their own right. The delinking of the   
U.S. dollar from the gold standard in 1973 further encouraged new economic      
relationships; with a floating exchange rate, import and export markets         
flourished, and with them, global financial markets. Meanwhile, a decade-old    
interest equalization tax, which had put severe restrictions on U.S. investors  
in international markets, was being challenged; it would be rescinded in        
January 1974.                                                                   

Although global investing was uncharted territory for most U.S. investors, the  
Capital organization had been following companies abroad since the early 1950s  
and had established a research office in Geneva, Switzerland, in 1962.          

[Begin Sidebar]                                                                 
"The time has come to recognize that the investment dollar is no longer drawn   
by some mystical force to the U.S. market exclusively. "                        
First report to shareholders, March 31, 1973                                    
[End Sidebar]                                                                   

[Begin Caption]                                                                 
David Fisher (Left)                                                             
Research visit   Japan 1975                                                     
[End Caption]                                                                   

[Begin Caption]                                                                 
1981                                                                            
Sir Peter Allen, Eikichi Itoh, Bill Newton                                      
Joint meeting with Advisory Board, Canada                                       
[End Caption]                                                                   

[Begin Caption]                                                                 
Karin Larson                                                                    
Research visit    Illinois 1975                                                 
[End Caption]                                                                   

[photographs:  watches and globe]                                               

Portfolio counselor Thierry Vandeventer has been based in the Geneva site since 
the mid-1960s. As an analyst in the fund's early years, he provided crucial     
research on international companies. "Very quickly," he says, "we had collected 
enough evidence to convince us that there were many interesting investment      
opportunities outside the U.S. and that shareholders could benefit from a stock 
fund with a global approach."                                                   

Proprietary research, one of the hallmarks of Capital's investment approach,    
was an absolute necessity in those days. Reliable information was difficult to  
come by, particularly outside the U.S. Accounting standards varied by country,  
financial disclosure was often vague or incomplete and travel was cumbersome    
and expensive.                                                                  

"To get to Australia back then, you had to make several connections, usually    
through Hawaii or Fiji," remembers Bill Grimsley, a portfolio counselor based   
in San Francisco. "And once you got there, you often found that companies       
distrusted foreign investors, which made getting even a copy of the annual      
report a challenge." Today, of course, technology has created an abundance of   
data, and our challenge has shifted from collecting information to interpreting 
it.                                                                             

In these early years, the contributions of the fund's Board of Directors and    
Advisory Board were especially valuable. Many of our initial contacts with      
companies abroad were made through this well-connected group, which             
collectively had considerable international experience. These boards continue   
to provide important assistance today; several of their original members        
continue to serve the fund.                                                     

[photograph:  watch]                                                            

In all, New Perspective Fund had investments in 42 companies at the close of    
its first fiscal year. Petroleum and metals companies constituted the largest   
industry concentrations and five of the 10 largest holdings. Although personal  
computers would not be popular for another 15 years or so, we had begun to      
recognize the power of technology: National Semiconductor, Texas Instruments    
and IBM were among our earliest investments and would, with occasional          
absences, be part of the portfolio for many years.                              

The vast majority of companies were based in the United States. Depressed       
equity prices had made U.S. valuations quite attractive, while a weak dollar    
not only boosted exports for American companies but made foreign stocks more    
expensive to purchase. The fund held 11 companies based outside the U.S., about 
10% of assets. They included Canadian oil stocks as well as a number of         
multinational businesses that would make important contributions to results in  
the years ahead: Matsushita Electric Industrial of Japan, Royal Dutch Petroleum 
of the Netherlands and Alcan Aluminium of Canada.                               

The economic situation had made stocks unpopular with investors in 1973, but    
for Bill Newton and New Perspective's four other original portfolio counselors, 
these were the perfect conditions in which to build a portfolio. Bill, who      
still manages a portion of the fund, recalls those early years vividly. "It's   
true that the investment environment was challenging, but it was also a very    
exciting time. For long-term, value-driven investors like us, the opportunity   
to buy solid companies at bargain-basement prices was too good to pass up."     

1985                                                                            
ON THE THRESHOLD OF CHANGE                                                      

1985 heralded a marked shift in attitudes about global investing. By this time, 
most developed nations had recovered from the doldrums of the 1970s. Japan      
emerged as an economic powerhouse, sprinting from a minor position to become a  
leading world market, second only to the U.S. Elsewhere in the Pacific Basin,   
Hong Kong, Australia and South Korea had also established themselves as viable  
participants in the global economy.                                             

Businesses reinvented themselves through a flurry of mergers and takeovers,     
particularly in the U.S. One notable exception to the mania for consolidation   
was the breakup of AT&T in 1984, a move that would ultimately create immense    
investment opportunities in the telecommunications area. Service industries in  
general were supplanting commodities as the new growth leaders, but the         
mid-1980s was also the "sweet spot" for manufacturers of consumer electronics,  
such as the VCR and the Sony Walkman.                                           

[photograph:  globe]                                                            

[Begin Sidebar]                                                                 
1985:                                                                           
A SNAPSHOT                                                                      
(as of 9/30/85)                                                                 

10 LARGEST HOLDINGS                                                             
Deutsche Bank                                                                   
IBM                                                                             
Digital Equipment                                                               
Intel                                                                           
National Semiconductor                                                          
Imperial Chemical                                                               
American International Group                                                    
Philip Morris                                                                   
Matsushita Electric                                                             
Honda Motor                                                                     

LARGEST INDUSTRIES                                                              
Data Processing & Reproduction                                                  
Electronic Components                                                           
Banking                                                                         
Energy Sources                                                                  
Electrical & Electronics                                                        

FUND NET ASSETS                                                                 
$673 million                                                                    

WORLD MARKET                                                                    
CAPITALIZATION                                                                  
$3.5 trillion                                                                   
(Source: MSCI World Index)                                                      

[End Sidebar]                                                                   
[Begin Caption]                                                                 
1986 Sweden                                                                     
Martial Chaillet (right)                                                        
Research visit                                                                  
[End Caption]                                                                   

[Begin Sidebar]                                                                 
"In Japan, the economy is strong, but stock prices and earnings ratios have     
risen to levels that have made many investments there less attractive relative  
to values elsewhere."                                                           
New Perspective Fund annual report, September 30, 1985                          
[End Sidebar]                                                                   

[Begin Caption]                                                                 
Mark Denning (right)   Singapore   1989                                         
Research visit                                                                  
[End Caption]                                                                   

[Begin Caption]                                                                 
Bill Grimsley                                                                   
London office    1984 England                                                   
[End Caption]                                                                   

[photographs:  maps showing Singapore and London]                               

These developments helped drive stock prices higher. Over the next two years,   
the MSCI World Index would appreciate 91% in dollar terms. Portfolio counselor  
Gregg Ireland, who was a research analyst in 1985, notes that "the interest in  
global markets by mainstream investors went from virtually nonexistent in the   
late 1970s to something appreciably more significant by this time. I would add  
that because Capital had already been investing abroad for so many years, we    
were well ahead of the curve."                                                  

One of the companies Gregg followed in the mid-1980s was Royal Dutch Petroleum. 
"Their business touches virtually every corner of the globe," he says, "and     
that's the basis on which I did my research." He talked to management at        
headquarters in The Hague, visited oil wells and refineries in Abu Dhabi,       
interviewed experts on the Middle East and called on the company's Asian        
offices with Capital analysts from Tokyo and Hong Kong. In view of the          
company's outstanding management, a strong balance sheet and a philosophy of    
investing for the future, Gregg was convinced that Royal Dutch could continue   
to be a successful long-term holding for New Perspective.                       

Meanwhile, a crash in oil prices in 1985 put the stock within a range that made 
it a good value. In making his decision, Gregg was able to draw on a deep well  
of expertise. "Capital made its first investment in Royal Dutch in 1953, so we  
had a long relationship with the company. Furthermore, I could benefit from the 
experience of a number of the original analysts, including Thierry              
Vandeventer." Gregg's own long tenure has enabled him to pass his insights on   
to some of the younger analysts as well.                                        

By 1985, the Capital organization had developed a truly international presence. 
In the years since New Perspective began, we had added research offices in      
London, Tokyo and Hong Kong, as well as Washington, D.C. and San Francisco.     
Capital had multiple analysts following most industries, which broadened our    
geographic expertise. That perspective proved invaluable for determining a      
company's relative value, not just in its own market, but on a global basis.    
Understanding how Honda, for example, stacked up against Daimler-Benz and Ford  
helped us make better investment decisions.                                     

By 1985, New Perspective Fund's portfolio of 105 companies was broadly          
diversified. Of 30 industries represented, the two largest were data processing 
and electronics. The number of countries represented in the portfolio had grown 
to 15, with the U.S. accounting for the largest share. The fund's exposure to   
Japan stood at about 10% of assets, about half what it was two years before. We 
had begun reducing the fund's position in Japan when our research indicated     
that valuation levels had risen beyond what we felt comfortable with. In fact,  
the Japanese "bubble" would burst several years later, taking stock prices      
sharply lower.                                                                  

Our reaction to the situation in Japan is a good example of our concern with    
risk. A focus on long-term results may cost us short-term gains at times, yet   
over the years New Perspective's conservative stance has helped the fund        
weather the inevitable downturns and do appreciably better than other funds     
when markets rebound. As Bill Grimsley observes, "When you're rejecting the     
$flavor of the month,' you frequently have a lot of explaining to do. With a    
long perspective, however, what looked wrong for five, 10 or even 15 years      
often turns out to be right for the next 15 years."                             

[Begin side bar]                                                                
NEW PERSPECTIVE FUND'S GLOBAL REACH                                             

Countries Visited (in 1997)                                                     

[illustration:  Illustrated is a map of the world, indicating the countries     
that Capital Research and Management Company and Capital Research Company       
visited in 1997.  Map also indicates the locations of their research offices.]  

Research Offices                                                                
San Francisco                                                                   
Los Angeles                                                                     
New York                                                                        
Washington, D.C.                                                                
London                                                                          
Geneva                                                                          
Tokyo                                                                           
Hong Kong                                                                       
Singapore                                                                       

4,568 research calls in U.S. & Canada                                           

1,469 research calls in Europe                                                  

176 research calls in Latin America                                             

72 research calls in Africa & the Middle East                                   

1,136 research calls in Asia & the Pacific                                      

Research has always been the lifeblood of New Perspective's investment          
approach. As the fund has grown, so has the scope of the research effort behind 
it. The fund's investment adviser, Capital Research and Management Company, and 
its subsidiary, Capital Research Company, operate one of the industry's most    
globally integrated research networks, supported by more than 100 analysts and  
portfolio counselors. Over the years, these men and women have built a broad    
base of knowledge about the global marketplace. Their expertise is reflected in 
the diversity of New Perspective's portfolio.                                   

WHERE ASSETS WERE INVESTED                                                      
[photographs:  globes]                                                          

1973                                                                            
By Region                                                                       
U.S. and Canada     55%                                                         
Other countries     4                                                           
Cash & equivalents  41                                                          

1985                                                                            
By Region                                                                       
U.S. and Canada     44%                                                         
Europe              27                                                          
Asia/Pacific        20                                                          
Cash & equivalents  9                                                           

1998                                                                            
By Region                                                                       
U.S. and Canada     39%                                                         
Europe              33                                                          
Asia/Pacific        9                                                           
Other countries     3                                                           
Cash & equivalents  16                                                          
[End Sidebar]                                                                   

[Begin Sidebar]                                                                 
"Our philosophy from the outset has been pretty straightforward: Get to know    
solid companies very well, understand their place in the world and figure out   
how that world is changing. That should lead you to successful long-term        
investments, which is what we've tended to have."                               
David Fisher, on the occasion of                                                
New Perspective's 25th anniversary, 1998                                        
[End Sidebar]                                                                   

[Begin Caption]                                                                 
Alan Greenway                                                                   
Founding Director                                                               
[End Caption]                                                                   

[Begin Caption]                                                                 
Jim Ratzlaff                                                                    
Founding Director                                                               
[End Caption]                                                                   

[photograph: map of Los Angeles]                                                

[Begin Caption]                                                                 
1990                                                                            
Gregg Ireland (right)   Gulf of Mexico                                          
Research visit                                                                  
[End Caption]                                                                   

1998                                                                            
A TRULY GLOBAL ECONOMY                                                          

The intervening years have seen the promise of globalization come to fruition.  
Today, most successful businesses cross many borders to serve a world           
clientele. Governments have fostered growth by adopting trade pacts, loosening  
regulations and encouraging private investment. Industries that were once       
government-controlled, such as telecommunications, have been privatized. For    
better or for worse, the world's fortunes are firmly linked; the result has     
been a flood of innovative products and efficient services.                     

The acceptance of global investing is reflected in the sheer size of world      
equity markets. In our first annual report, we noted that "there are about 80   
companies with stock valued at more than $1 billion listed in stock markets     
outside the U.S." Today, there are many more companies worth $1 billion, and    
some are even considered small by many standards. When New Perspective Fund was 
introduced in 1973, world stock markets had a combined value of $1.4 trillion,  
roughly equal to Japan's alone today. As of September 30 of this year, the      
value of the world's markets has appreciated fourteenfold, to $19.6 trillion.   
The bulk of this growth has occurred in the last eight years or so, fed by a    
cycle of rising stock prices and an increasing number of new investors. New     
Perspective's growth has mirrored this trend. Net assets since 1973 have        
increased more than one hundredfold. At $17.7 billion and over one million      
shareholders, it is by far the nation's largest global growth fund.             

New Perspective's investment universe has broadened as well. In 1973, the fund  
held companies based in four countries; in 1985, 15 nations were represented;   
today, there are 25.                                                            

"The number of viable markets, even in Europe, was fairly limited in 1985,"     
notes Mark Denning, a portfolio counselor based in London. "Today, countries    
like Portugal, Finland and Denmark support very liquid, reliable financial      
markets."                                                                       

Of course, as we have mentioned many times, we invest in individual companies,  
not countries or regions. A concentration in Germany or France, for example,    
doesn't stem from a decision to focus a certain percentage of assets in those   
countries. Rather, it reflects the sum of judgments on specific businesses that 
happen to be based there - a strictly bottom-up approach.                       

Many of these stocks have been part of New Perspective for quite some time.     
Current holdings that appeared in the first annual report include Unilever,     
Texas Instruments, Matsushita, Philips Electronics, Royal Dutch, IBM and Time   
Warner (as Warner Communications). Although there have been times when we       
reduced these holdings or eliminated them altogether, we have followed these    
companies continuously, purchasing stocks when valuations warranted. Over the   
years, these investments and many others - including those that did not exist   
at the fund's inception - have made important contributions to the fund's       
lifetime record. (We encourage you to look through the detailed company         
listings that begin on page 14.)                                                

As New Perspective has expanded - both in scope and size - the number of        
investment professionals has grown with it. The process has been a relatively   
smooth one thanks to the multiple portfolio counselor system, which Capital     
developed 40 years ago. This team approach, in which assets are divided among a 
number of managers, has allowed new fund managers to be seamlessly integrated   
as the fund has grown or as other portfolio counselors have retired. New        
Perspective Fund now has five primary portfolio counselors. An additional       
portion of the fund's assets, accounting for roughly one-quarter of the         
portfolio, is the responsibility of more than three dozen research analysts     
around the world.                                                               

The multiple portfolio counselor system has another important benefit: It       
ensures the consistency of the fund's investment approach from generation to    
generation. Tim Dunn, who works out of our London office, recently became a     
portfolio counselor for the fund. "Many of the pioneers of New Perspective Fund 
- people like Jon Lovelace, David Fisher, Bill Newton, Bill Grimsley and        
Thierry Vandeventer - are still on hand to pass on the legacy of their          
experience," he says. "They've taught me by example to find global companies    
that are positioned to do better than their competitors, to invest in them and  
stay invested in them. That strategy has never varied, and it should give       
shareholders some comfort to know it will still be in place 25 years from now." 

[Begin Caption]                                                                 
1996                                                                            
Mike Kerr (left)                                                                
Research visit   Texas                                                          
[End Caption]                                                                   

[photographs:  globe and watch]                                                 

[Begin Sidebar]                                                                 
1998:                                                                           
A Snapshot                                                                      
(as of 9/30/98)                                                                 

10 LARGEST HOLDINGS                                                             
Pfizer                                                                          
Time Warner                                                                     
Philip Morris                                                                   
Astra                                                                           
Viacom                                                                          
Nokia                                                                           
Mannesmann                                                                      
Novartis                                                                        
Telefonica                                                                      
Micron Technology                                                               

LARGEST INDUSTRIES                                                              
Telecommunications                                                              
Health & Personal Care                                                          
Broadcasting & Publishing                                                       
Electrical & Electronics                                                        
Electronic Components                                                           

FUND NET ASSETS                                                                 
$17.7 billion                                                                   

WORLD MARKET                                                                    
CAPITALIZATION                                                                  
$19.6 trillion                                                                  
(Source: MSCI World Index)                                                      
[End Sidebar]                                                                   
New Perspective Fund                                                            
Investment Portfolio, September 30, 1998                                        

Largest Industry Holdings                                                       

12.25% Telecommunications                                                       
10.92% Health & Personal Care                                                   
7.11%  Broadcasting & Publishing                                                
6.00%  Electrical & Electronics                                                 
4.15%  Electronic Components                                                    
43.87% Other Industries                                                         
15.70% Cash and Equivalents                                                     

                                                        [Enlarge/Download Table]
                                                                                         
                                                        Shares or     Market  Percent    
                                                        Principal      Value    of Net   
Equity Securities                                          Amount  (Millions)   Assets   
-----------------------------------------            ------------  ----------------------

Telecommunications - 12.25%                                                              
Mannesmann AG (Germany)                                   3,875,000  $355.015     2.00   
Telefonica, SA (formerly Telefonica de Espana, SA)                                       
 (Spain)                                                  6,823,800   249.100            
Telefonica, SA (ADR)                                         76,000     8.203     1.45   
AirTouch Communications (USA) (1)                         3,575,000   203.775     1.15   
Deutsche Telekom AG (Germany)                             6,424,300   199.653     1.13   
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexi        3,434,530   151.978      .86   
AT&T Corp. (USA)                                          2,535,000   148.139      .84   
WorldCom, Inc. (formerly MCI Communications Corp.)                                       
 (USA)                                                    2,892,068   141.350      .80   
Vodafone Group PLC (ADR) (United Kingdom)                   977,000   110.157      .62   
Tele Danmark AS (Denmark)                                   671,150    66.703            
Tele Danmark AS, Class B (ADR)                              699,300    33.654      .57   
Telecom Italia SpA, ordinary shares (Italy)               4,187,500    28.647            
Telecom Italia SpA, nonconvertible savings shares        12,500,000    58.349      .49   
France Telecom, SA (France)                               1,190,700    70.435      .40   
DDI Corp. (Japan)                                            29,045    64.672      .37   
Nippon Telegraph and Telephone Corp. (Japan)                  8,850    64.497      .36   
Sprint Corp. (USA)                                          883,400    63.605      .36   
Telecom Corp. of New Zealand Ltd. (New Zealand)          10,671,100    40.800            
Telecom Corp. of New Zealand Ltd. (2)                     4,917,700    18.803      .34   
Koninklijke PTT Nederland NV (Netherlands)                1,649,371    50.949      .29   
British Telecommunications PLC (United Kingdom)           3,000,000    39.886      .22   

Health & Personal Care - 10.92%                                                          
Pfizer Inc (USA)                                          4,870,000   515.916     2.91   
Astra AB, Class A (Sweden)                               13,026,833   222.616            
Astra AB, Class A (ADR)                                     413,333     7.104            
Astra AB, Class B                                         8,590,533   141.326     2.10   
Novartis AG (Switzerland)                                   199,231   320.288     1.81   
SmithKline Beecham PLC (ADR) (United Kingdom)             2,200,000   120.450      .68   
Merck & Co., Inc. (USA)                                     810,500   105.010      .59   
Teva Pharmaceutical Industries Ltd. (ADR) (Israel)        2,635,000    99.801      .56   
Zeneca Group PLC (United Kingdom)                         1,700,000    60.041            
Zeneca Group PLC (ADR)                                      555,000    19.425      .45   
Glaxo Wellcome PLC (United Kingdom)                         563,264    16.355            
Glaxo Wellcome PLC (ADR)                                  1,044,000    59.639      .43   
Alza Corp. (USA) (1)                                      1,000,000    43.375      .25   
Genentech, Inc., callable putable common stock (US          600,000    43.125      .24   
Bristol-Myers Squibb Co. (USA)                              400,000    41.550      .24   
Pharmacia & Upjohn, Inc. (USA)                              650,000    32.622      .18   
Guidant Corp. (USA)                                         400,000    29.700      .18   
Medtronic, Inc. (USA)                                       500,000    28.938      .16   
Shiseido Co., Ltd. (Japan)                                1,689,000    14.907      .08   
Avon Products, Inc. (USA)                                   400,000    11.225      .06   

Broadcasting & Publishing - 7.11%                                                        
Time Warner Inc. (USA)                                    5,306,225   464.626     2.62   
Viacom Inc., Class A (USA) (1)                              500,000    28.750            
Viacom Inc., Class B (1)                                  5,640,000   327.120     2.01   
News Corp. Ltd. (Australia)                               3,958,997    25.534            
News Corp. Ltd. (ADR)                                     3,991,600   102.285            
News Corp. Ltd., preferred shares                         2,037,002    11.351            
News Corp. Ltd., preferred shares (ADR)                   1,995,800    44.656     1.04   
CANAL+ (France)                                             350,623    85.153      .48   
Wolters Kluwer NV (Netherlands)                             162,516    31.199      .18   
Pearson PLC (United Kingdom)                              1,700,000    31.190      .18   
CBS Corp. (USA)                                           1,045,000    25.341      .14   
Elsevier NV (Netherlands)                                 1,700,000    25.264      .14   
Dow Jones & Co., Inc. (USA)                                 500,000    23.250      .13   
AUDIOFINA (Luxembourg)                                      415,300    17.485      .10   
Grupo Televisa, SA, ordinary participation                                               
 certificates (ADR) (Mexico) (1)                            825,000    15.933      .09   

Electrical & Electronics - 6.00%                                                         
Nokia Corp., Class A (Finland)                            1,440,000   114.441            
Nokia Corp., Class A (ADR)                                2,440,000   191.388            
Nokia Corp., Class K                                        623,800    49.514     2.01   
Telefonaktiebolaget LM Ericsson, Class B (Sweden)         9,672,000   182.553            
Telefonaktiebolaget LM Ericsson, Class B (ADR)            2,200,000    40.425     1.26   
Siemens AG (Germany)                                      3,280,000   181.284     1.02   
Northern Telecom Ltd. (Canada)                            3,553,420   113.709      .64   
Matsushita Communication Industrial Co., Ltd. (Jap        1,550,000    55.629      .31   
General Electric Co. (USA)                                  480,000    38.190      .22   
Schneider SA (France)                                       600,000    31.263      .18   
General Instrument Corp. (USA) (1)                        1,055,200    22.819      .13   
York International Corp. (USA)                              680,000    22.695      .13   
Alcatel, SA (formerly Alcatel Alsthom) (France)             200,000    17.773      .10   

Electronic Components - 4.15%                                                            
Micron Technology, Inc. (USA) (1)                         7,500,000   228.281     1.29   
Intel Corp. (USA)                                         1,800,000   154.350      .87   
Advanced Micro Devices, Inc. (USA) (1)                    7,050,000   130.866      .74   
Murata Manufacturing Co., Ltd. (Japan)                    1,746,000    58.955      .33   
Altera Corp. (USA) (1)                                    1,250,000    43.906      .25   
Seagate Technology (USA) (1)                              1,400,000    35.088      .20   
Analog Devices, Inc. (USA) (1)                            1,710,000    27.467      .15   
Hirose Electric Co., Ltd. (Japan)                           400,000    20.538      .12   
Rohm Co., Ltd. (Japan)                                      200,000    19.043      .11   
Texas Instruments Inc. (USA)                                300,000    15.825      .09   

Banking - 3.98%                                                                          
Bank of Nova Scotia (Canada)                              7,359,000   120.600      .68   
Westpac Banking Corp. (Australia)                        17,794,543    97.954            
Westpac Banking Corp., warrants, expire 2000 (1)          3,000,000    14.956      .64   
Royal Bank of Canada (Canada)                             2,717,000   110.247      .62   
BankAmerica Corp. (USA)                                   1,200,000    72.150      .41   
Citicorp (USA)                                              610,000    56.692      .32   
Banque Nationale de Paris (France)                          867,048    46.416      .26   
Australia and New Zealand Banking Group Ltd.                                             
 (Australia)                                              6,212,511    33.208      .19   
Paribas, Class A (formerly Cie. Financiere de                                            
 Paribas) (France)                                          500,000    26.945      .15   
Istituto Mobiliare Italiano SpA (Italy)                   1,980,000    26.640      .15   
ABN AMRO Holding NV (Netherlands)                         1,357,860    23.134      .13   
Banco de Santander, SA (Spain)                              416,000     6.435            
Banco de Santander, SA (ADR)                              1,101,600    16.662      .13   
First Union Corp. (USA)                                     426,000    21.806      .12   
Sakura Bank, Ltd. (Japan)                                12,700,000    18.604      .11   
Fuji Bank, Ltd. (Japan)                                   5,910,000    11.904      .07   

Beverages & Tobacco - 3.78%                                                              
Philip Morris Companies Inc. (USA)                        9,355,000   430.915     2.43   
Seagram Co. Ltd. (Canada)                                 2,800,000    80.325      .45   
Asahi Breweries, Ltd. (Japan)                             2,777,000    32.951            
Asahi Breweries, Ltd.,  1.00% convertible                                                
 debentures 2003                                      Y924,000,000     10.016            
Asahi Breweries, Ltd.,  0.95% convertible                                                
 debentures 2002                                      Y410,000,000      4.264            
Asahi Breweries, Ltd.,  0.90% convertible                                                
 debentures 2001                                      Y520,000,000      5.332      .30   
Gallaher Group PLC (United Kingdom)                       2,905,100    21.211            
Gallaher Group PLC (ADR)                                    300,000     8.813      .17   
PepsiCo, Inc. (USA)                                       1,000,000    29.438      .17   
Southcorp Ltd. (Australia)                                9,000,000    25.059      .14   
Cia. Cervejaria Brahma, preferred nominative (Braz       50,172,000    19.681            
Cia. Cervejaria Brahma, preferred nominative (ADR)          100,000     0.781      .11   
LVMH Moet Hennessy Louis Vuitton (France)                     9,700     1.324      .01   

Energy Sources - 3.38%                                                                   
TOTAL, Class B (France)                                     131,077    16.513            
TOTAL, Class B (ADR)                                      3,109,814   195.335     1.20   
Royal Dutch Petroleum Co. (New York Registered                                           
 Shares) (Netherlands)                                    1,952,000    92.964            
'Shell' Transport and Trading Co., PLC (United                                           
 Kingdom)                                                 3,000,000    18.147      .63   
Elf Aquitaine (France)                                      400,000    49.322            
Elf Aquitaine (ADR)                                         250,000    15.547      .37   
Mobil Corp. (USA)                                           700,000    53.156      .30   
Phillips Petroleum Co. (USA)                                700,000    31.588      .18   
YPF SA, Class D (ADR) (Argentina)                         1,200,000    31.200      .17   
Talisman Energy Inc. (Canada) (1)                         1,400,000    30.010      .17   
Unocal Corp. (USA)                                          800,000    29.000      .16   
ENI SpA (Italy)                                           4,000,000    24.549      .14   
RAO Gazprom (ADR) (Russia)                                1,341,000     8.683      .05   
Broken Hill Proprietary Co. Ltd. (Australia)                371,938     2.663      .01   

Data Processing & Reproduction - 2.93%                                                   
Oracle Corp. (USA) (1)                                    2,911,100    84.786      .48   
Ascend Communications, Inc. (USA) (1)                     1,850,000    84.175      .48   
Microsoft Corp. (USA) (1)                                   760,000    83.648      .47   
Fujitsu Ltd. (Japan)                                      9,223,000    79.712      .45   
Cisco Systems, Inc. (USA) (1)                               750,000    46.359      .26   
International Business Machines Corp. (USA)                 300,000    38.400      .22   
Compaq Computer Corp. (USA)                               1,200,000    37.950      .21   
Gateway 2000, Inc. (USA) (1)                                500,000    26.063      .15   
Silicon Graphics, Inc. (USA) (1)                          2,100,000    19.688      .11   
Computer Associates International, Inc. (USA)               500,000    18.500      .10   

Business & Public Services - 2.79%                                                       
Cendant Corp. (USA) (1)                                  11,400,000   132.525      .75   
Reuters Group PLC (United Kingdom)                       10,985,400    92.147            
Reuters Group PLC (ADR)                                     300,000    14.925      .61   
Suez Lyonnaise des Eaux (France)                            447,000    76.095      .43   
TNT Post Groep NV (Netherlands)                           1,629,500    41.514      .23   
Vivendi SA (formerly Cie. Generale des Eaux) (Fran          203,808    40.587            
Vivendi SA, warrants, expire 2001 (1)                       203,808     0.313      .23   
Interpublic Group of Companies, Inc. (USA)                  500,000    26.969      .15   
Electronic Data Systems Corp. (USA)                         800,000    26.550      .15   
Rentokil Initial PLC (United Kingdom)                     4,200,000    25.701      .15   
United Utilities PLC (United Kingdom)                       567,286     9.161      .05   
Brambles Industries Ltd. (Australia)                        350,000     7.558      .04   

Insurance - 2.57%                                                                        
ING Groep NV (Netherlands)                                2,486,908   112.063      .63   
Fairfax Financial Holdings Ltd. (Canada)                    289,700    83.748            
Fairfax Financial Holdings Ltd. (USA) (2)                    93,000    26.885      .63   
American International Group, Inc. (USA)                  1,153,437    88.815      .50   
Assicurazioni Generali SpA (Italy)                        1,508,000    49.267      .28   
Allianz AG (Germany)                                        153,000    47.457      .27   
Yasuda Fire and Marine Insurance Co., Ltd. (Japan)        7,299,000    26.730      .15   
Guardian Royal Exchange PLC (United Kingdom)              4,142,857    17.973      .10   
QBE Insurance Group Ltd. (Australia)                        624,097     2.275      .01   

Multi-Industry - 2.49%                                                                   
Siebe PLC (United Kingdom)                               27,880,000    89.946      .51   
Hutchison Whampoa Ltd. (Hong Kong)                       13,216,000    69.589      .39   
Williams PLC (United Kingdom)                            11,076,923    64.796      .37   
Lend Lease Corp. Ltd. (Australia)                         2,444,277    52.163      .30   
FMC Corp. (USA) (1)                                         559,800    28.865      .16   
TI Group PLC (United Kingdom)                             4,472,900    27.038      .15   
Canadian Pacific Ltd. (Canada)                            1,200,000    24.825      .14   
LTV Corp. (USA)                                           3,975,000    24.347      .14   
Lagardere Groupe SCA (France)                               850,000    24.253      .14   
Investor AB, Class B (Sweden)                               520,000    20.160      .11   
AlliedSignal Inc. (USA)                                     400,000    14.150      .08   

Chemicals - 2.44%                                                                        
Praxair, Inc. (USA)                                       3,207,850   104.857      .59   
BOC Group PLC (United Kingdom)                            7,751,600    96.084      .55   
Valspar Corp. (USA)                                       1,555,000    46.553      .26   
Sherwin-Williams Co. (USA)                                1,962,000    42.428      .24   
Methanex Corp. (Canada) (1)                               7,250,000    41.585      .24   
Bayer AG (Germany)                                          950,000    35.895      .20   
Georgia Gulf Corp. (USA) (3)                              1,975,000    30.859      .17   
L'Air Liquide (France)                                      125,235    19.845      .11   
AGA AB, Class A (Sweden)                                    800,000    10.406            
AGA AB, Class B                                             300,000     3.711      .08   

Automobiles - 2.41%                                                                      
Renault V.I. SA (France)                                  3,000,000   119.914      .68   
Bayerische Motoren Werke AG (Germany)                        80,350    51.410            
Bayerische Motoren Werke AG, preferred shares                26,412     9.866      .35   
Suzuki Motor Corp. (Japan)                                5,538,000    55.733      .31   
Chrysler Corp. (USA)                                      1,000,000    47.875      .27   
Honda Motor Co., Ltd. (Japan)                             1,000,000    30.396      .17   
Nissan Motor Co., Ltd. (Japan)                            9,300,000    25.884      .15   
Volvo AB, Class B (Sweden)                                1,000,000    24.486      .14   
Ford Motor Co. (USA)                                        500,000    23.469      .13   
General Motors Corp. (USA)                                  400,000    21.875      .12   
Daimler-Benz AG, 4.125% convertible debentures                                           
 2003 (Germany) (2)                                  DM17,000,000      15.829      .09   

Food & Household Products - 1.99%                                                        
Nestle SA (Switzerland)                                      60,000   119.713      .68   
Groupe Danone (France)                                      393,552   103.444      .58   
Reckitt & Colman PLC (United Kingdom)                     5,503,125    81.342      .46   
Unilever NV (Netherlands)                                   300,000    18.884      .11   
Archer Daniels Midland Co. (USA)                          1,102,500    18.467      .10   
Colgate-Palmolive Co. (USA)                                 150,000    10.275      .06   

Gold Mines - 1.91%                                                                       
Newmont Mining Corp. (USA)                                4,000,000    97.000      .55   
Placer Dome Inc. (Canada)                                 7,000,000    96.688      .55   
Barrick Gold Corp. (Canada)                               3,400,000    68.000      .38   
Homestake Mining Co. (USA)                                4,500,000    54.563      .31   
Gold Fields of South Africa Ltd. (South Africa)           1,741,500    22.302      .12   

Leisure & Tourism - 1.44%                                                                
Carnival Corp. (USA)                                      6,600,000   209.963     1.19   
Walt Disney Co. (USA)                                     1,800,000    45.563      .25   

Appliances & Household Durables - 1.36%                                                  
Sony Corp. (Japan)                                        1,845,000   128.243      .72   
Koninklijke Philips Electronics NV (Netherlands)          1,723,200    92.832      .52   
Samsung Electronics Co., Ltd. (South Korea)                 634,412    17.362            
Samsung Electronics Co., Ltd. (GDR)                         193,028     2.707      .12   

Forest Products & Paper - 1.31%                                                          
Champion International Corp. (USA)                        2,200,000    68.888      .39   
Louisiana-Pacific Corp. (USA)                             2,550,000    51.956      .30   
UPM-Kymmene Corp. (Finland)                               1,953,000    44.757      .25   
International Paper Co. (USA)                               600,000    27.975      .16   
Rayonier Inc. (USA)                                         600,000    23.400      .13   
Jefferson Smurfit Corp. (USA) (1)                         1,255,700    14.441      .08   

Merchandising - 1.14%                                                                    
Wal-Mart Stores, Inc. (USA)                               1,850,000   101.056      .57   
Home Depot, Inc. (USA)                                    1,270,000    50.165      .28   
Marks & Spencer PLC (United Kingdom)                      4,200,000    32.035      .18   
Cifra, SA de CV, Class C (Mexico)                         3,624,400     4.438            
Cifra, SA de CV, Class V (1)                             10,995,004    13.959      .11   

Utilities:  Electric & Gas - 1.00%                                                       
Williams Companies, Inc. (USA)                            3,198,025    91.943      .52   
National Power PLC (United Kingdom)                       9,300,000    84.642      .48   

Recreation & Other Consumer Products - 0.96%                                             
Nintendo Co., Ltd. (Japan)                                  650,000    61.129      .35   
Hasbro, Inc. (USA)                                        1,800,000    53.100      .30   
Eastman Kodak Co. (USA)                                     400,000    30.925      .17   
EMI Group PLC (United Kingdom)                            3,975,569    24.487      .14   

Aerospace & Military Technology - 0.71%                                                  
Bombardier Inc., Class B (Canada)                         5,820,000    64.094      .36   
Boeing Co. (USA)                                          1,800,000    61.763      .35   

Textiles & Apparel - 0.61%                                                               
NIKE, Inc., Class B (USA)                                 2,928,000   107.787      .61   

Metals: Nonferrous - 0.54%                                                               
Aluminum Co. of America (formerly Alumax Inc.) (US          631,313    44.823      .25   
WMC Ltd. (Australia)                                     12,389,336    37.288      .21   
Pechiney, Class A (France)                                  383,309    13.256      .08   

Machinery & Engineering - 0.51%                                                          
Caterpillar Inc. (USA)                                    1,350,000    60.159      .34   
Deere & Co. (USA)                                           500,000    15.125      .08   
Kvaerner AS, Class A (Norway)                               659,240     8.380      .05   
UNOVA Inc. (USA) (1)                                        440,000     7.233      .04   

Metals: Steel - 0.48%                                                                    
Allegheny Teledyne Inc. (USA)                             2,040,000    36.338      .20   
Usinor Sacilor (France)                                   2,800,000    31.128      .18   
Cia. Vale do Rio Doce, ordinary nominative (Brazil           38,400     0.411            
Cia. Vale do Rio Doce, preferred nominative (4)              38,400     0.000            
Cia. Vale do Rio Doce, preferred nominative (ADR)         1,184,000    16.872      .10   

Energy Equipment - 0.47%                                                                 
Schlumberger Ltd. (Netherlands Antilles)                    598,300    30.102      .17   
Baker Hughes Inc. (USA)                                   1,388,300    29.068      .16   
Halliburton Co. (USA)                                       874,900    24.989      .14   

Transportation: Shipping - 0.35%                                                         
Bergesen d.y. AS, Class A (Norway)                        1,500,000    21.300            
Bergesen d.y. AS, Class B                                   795,000    10.536      .18   
Nippon Yusen KK (Japan)                                  10,525,000    30.913      .17   

Transportation: Rail & Road - 0.33%                                                      
Union Pacific Corp. (USA)                                 1,375,000    58.609      .33   

Miscellaneous Materials & Commodities - 0.31%                                            
Cie. de Saint-Gobain (France)                               320,000    42.427      .24   
De Beers Consolidated Mines Ltd. (South Africa)           1,000,000    13.129      .07   

Real Estate - 0.30%                                                                      
Cheung Kong (Holdings) Ltd. (Hong Kong)                  11,320,000    52.447      .30   

Electronic Instruments - 0.25%                                                           
ADVANTEST CORP. (Japan)                                   1,027,500    43.650      .25   

Industrial Components - 0.15%                                                            
Bridgestone Corp. (Japan)                                 1,118,000    22.519      .13   
Rockwell International Corp. (USA)                           91,000     3.287      .02   

Building Materials & Components - 0.10%                                                  
Cemex, SA de CV, Class A (Mexico)                         2,362,225     5.195            
Cemex, SA de CV, ordinary participation certificat        5,777,066    12.705      .10   

Financial Services - 0.09%                                                               
Associates First Capital Corp., Class A (USA)               259,883    16.957      .09   

Miscellaneous - 0.79%                                                                    
Other equity securities in initial period of                                             
 acquisition                                                          139.842      .79   
                                                                   ----------------------

TOTAL INVESTMENT SECURITIES                                                              
(cost: $11,341.853 million)                                        14,926.669    84.30   
                                                                   ----------------------

Short-Term Securities                                                                    
------------------------------------------                                               

Corporate Short-Term Notes - 11.03%                                                      
General Electric Capital Corp.  5.18%-5.54% due            $108.600   108.028      .61   
 10/13-12/7/98                                                                           
Toyota Motor Credit Corp.  5.47%-5.50% due 10/1-            107.297   106.855      .60   
 11/20/98                                                                                
Coca-Cola Co.  5.31%-5.43% due 11/10-12/8/98                107.100   106.242      .60   
Ford Motor Credit Co.  5.18%-5.52% due 10/5-11/30/          103.300   102.784      .58   
Abbey National North America   5.41%-5.48% due              100.000    99.139      .56   
 11/23-12/9/98                                                                           
Daimler-Benz North America Corp.   5.20%-5.52% due           99.100    98.745      .56   
 10/8-12/21/98                                                                           
Deutsche Bank Financial Inc.  5.48%-5.52%  due 10/           95.300    95.007      .54   
 10/23/98                                                                                
Canada Bills  5.32%-5.47% due 10/19-12/3/98                  91.200    90.634      .51   
Halifax PLC  5.48%-5.49% due 10/7-10/19/98                   89.640    89.484      .51   
British Gas Capital Inc.  5.10%-5.51% due 10/15/98           88.000    86.986      .49   
 3/11/99                                                                                 
Commerzbank U.S. Finance Inc.  5.50%-5.52% due               86.750    86.451      .49   
 10/16-10/26/98                                                                          
Svenska Handelsbanken Group  5.49%-5.50% due 10/21           83.300    82.813      .47   
 11/20/98                                                                                
Motorola, Inc.  5.43%-5.49% due 10/22-11/19/98               82.200    81.774      .46   
General Motors Acceptance Corp.  5.50% due 10/1-             75.000    74.828      .42   
 10/22/98                                                                                
E.I. du Pont de Nemours and Co.  5.46% due 11/4-             74.468    74.061      .42   
 11/6/98                                                                                 
International Lease Finance Corp. 5.45%-5.50% due            64.600    64.281      .36   
 10/27-11/13/98                                                                          
American Express Credit Corp.  5.20%-5.50%  due              59.300    59.025      .33   
 10/23-11/6/98                                                                           
Repsol International Finance B.V. 4.97%-5.48% due            58.000    57.349      .32   
 10/2/98-3/30/99                                                                         
Rank Xerox Capital (Europe) PLC 5.43%-5.49% due              53.597    53.439      .30   
 10/14-11/12/98                                                                          
Dresdner U.S. Finance Inc.  5.50% due 10/7/98                50.000    49.946      .28   
Shell Oil Co.  5.49% due 10/16/98                            50.000    49.878      .28   
Commonwealth Bank of Australia  5.42% due 12/14/98           50.000    49.459      .28   
BP America Inc.  5.42% due 12/4/98                           40.000    39.626      .23   
UBS Finance (DE) Inc.  5.48%-5.50% due 10/9-                 37.500    37.427      .21   
 10/21/98                                                                                
Electricite de France  5.49% due 10/13/98                    35.500    35.429      .20   
ABN AMRO North America Finance Inc.  5.48%-5.50%             35.400    35.156      .20   
 due 10/13-12/1/98                                                                       
Bank of Montreal  5.47% due 10/6/98                          20.000    19.982      .12   
Hershey Foods Corp.  5.48% due 10/20/98                      17.100    17.048      .10   

Federal Agency Discount Notes - 2.83%                                                    
Freddie Mac 5.00%-5.45% due 10/1/98-2/16/99                 301.740   298.936     1.69   
Fannie Mae  4.915%-5.42% due 10/5/98-3/26/99                203.900   202.111     1.14   

Certificates of Deposit - 1.89%                                                          
Canadian Imperial Bank of Commerce 5.46% due                 90.000    89.999      .51   
 11/17-11/23/98                                                                          
Westdeutsche Landesbank Girozentrale  5.55%-5.56%            85.000    85.000      .48   
 due 10/8-10/9/98                                                                        
Bayerische Vereinsbank AG  5.57%-5.59% due 10/5-             80.000    80.000      .45   
 10/6/98                                                                                 
Societe Generale  5.52%-5.57% due 10/27-10/30/98             80.000    80.000      .45   

Non-U.S. Currency - 0.04%                                                                
New Taiwanese Dollar                                   NT$260.183       7.608      .04   

TOTAL SHORT-TERM SECURITIES (cost: $2,796.784 mill                  2,795.530    15.79   
Excess of payables over cash and receivables                           15.229      .09   
                                                                   ----------------------

TOTAL SHORT-TERM SECURITIES AND NET CASH                            2,780.301    15.70   
                                                                   ----------------------

NET ASSETS                                                         $17,706.97   100.00%  
                                                                   ===================== 

(1) Non-income-producing securities.                                                     

(2) Purchased in a private placement                                                     
 transaction; resale to the public may                                                   
 require registration or sale only                                                       
 to qualified institutional buyers.                                                      

(3) The fund owns 6.38% of the outstanding voting                                        
 securities of Georgia Gulf Corp., and thus is                                           
 considered an affiliate as defined in the Investment                                    
 Company Act of 1940.                                                                    

(4) Valued under procedures established by the Board of                                  
 Directors.                                                                              

ADR = American Depositary Receipts                                                       
GDR = Global Depositary Receipts                                                         

The descriptions of the companies shown in the port-                                     
 folio which were obtained from published reports and                                    
 other sources believed to be reliable, are supplemental                                 
 and are not covered by the Report of Independent                                        
 Accountants.                                                                            

See Notes to Financial Statements                                                        

New Perspective Fund                                                                     

Equity-Type Securities Appearing in the                                                  
Portfolio Since March 31, 1998                                                           

Baker Hughes                                                                             
Bombardier                                                                               
Brambles Industries                                                                      
Cendant                                                                                  
Compaq Computer                                                                          
First Union                                                                              
Gateway 2000                                                                             
Homestake Mining                                                                         
Interpublic Group of Companies                                                           
Marks & Spencer                                                                          
Matsushita Communication Industrial                                                      
Nippon Telegraph & Telephone                                                             
Nissan Motor                                                                             
QBE Insurance Group                                                                      
Southcorp                                                                                
TI Group                                                                                 
Unocal                                                                                   
Yasuda Fire & Marine Insurance                                                           

 Equity-Type Securities Eliminated from the                                              
 Portfolio Since March 31, 1998                                                          

 Accor                                                                                   
 Alcan Aluminium                                                                         
 Amgen                                                                                   
 Anadarko Petroleum                                                                      
 Applied Materials                                                                       
 Asustek Computer                                                                        
 B.A.T Industries                                                                        
 Cadbury Schweppes                                                                       
 Carlton Communications                                                                  
 Carrefour                                                                               
 Chase Manhattan                                                                         
 Du Pont                                                                                 
 Engelhard                                                                               
 Enterprise Oil                                                                          
 Fuji Photo Film                                                                         
 Gillette                                                                                
 Hong Kong Telecommunications                                                            
 Hongkong Electric Holdings                                                              
 Istituto Nazionale delle Assicurazioni                                                  
 Johnson & Johnson                                                                       
 Kawasaki Heavy Industries                                                               
 Kyocera                                                                                 
 Phelps Dodge                                                                            
 PolyGram                                                                                
 Raytheon                                                                                
 Security Capital Group                                                                  
 Swire Pacific                                                                           
 Taiwan Semiconductor Manufacturing                                                      
 Teck                                                                                    
 Telecomunicacoes Brasileiras                                                            
 Tokyo Electron                                                                          
 Toronto-Dominion Bank                                                                   
 Toyota Motor                                                                            


                                                                [Download Table]
New Perspective Fund                                                         
Financial Statements                                                         
-----------------------------------------   ---------------- ----------------
                                                                             
Statement of Assets and Liabilities                            (dollars in   
at September 30, 1998                                            millions)   
-----------------------------------------   ---------------- ----------------
Assets:                                                                      
Investment securities at market                                              
 (cost: $11,341.853)                                           $14,926.669   
Short-term securities                                                        
 (cost: $2,796.784)                                              2,795.530   
Cash                                                                  .230   
Receivables for-                                                             
 Sales of investments                                $61.596                 
 Sales of fund's shares                               17.617                 
 Forward currency contracts                            1.937                 
 Dividends and accrued interest                       39.487       120.637   
                                            ---------------- ----------------
                                                                17,843.066   
Liabilities:                                                                 
Payables for-                                                                
 Purchases of investments                            107.639                 
 Repurchases of fund's shares                         17.956                 
 Management services                                   6.010                 
 Accrued expenses                                      4.491       136.096   
                                            ---------------- ----------------
Net Assets at September 30, 1998-                                            
 Equivalent to $20.50 per share on                                           
 863,908,688 shares of $1 par value                                          
 capital stock outstanding (authorized                                       
 capital stock--1,000,000,000 shares)                          $17,706.970   
                                                             ================

Statement of Operations                                                      
for the year ended September 30, 1998                                        
                                                               (dollars in   
                                                                 millions)   
-----------------------------------------   ---------------- ----------------
Investment Income:                                                           
Income:                                                                      
 Dividends                                         $ 235.336                 
 Interest                                            127.111     $ 362.447   
                                            ----------------                 
Expenses:                                                                    
 Management services fee                              72.691                 
 Distribution expenses                                40.459                 
 Transfer agent fee                                   14.537                 
 Reports to shareholders                                .512                 
 Registration statement and prospectus                 1.223                 
 Postage, stationery and supplies                      2.980                 
 Directors' and Advisory Board fees                     .294                 
 Auditing and legal fees                                .097                 
 Custodian fee                                         3.732                 
 Taxes other than federal income tax                    .222                 
 Other expenses                                         .266       137.013   
                                            ---------------- ----------------
 Net investment income                                             225.434   
                                                             ----------------
Realized Gain and Change in Unrealized                                       
 Appreciation on Investments:                                                
Net realized gain                                                 1,406.817  
Net change in unrealized appreciation on                                     
 investments                                      (1,488.575)                
Net increase in unrealized appreciation                                      
 on forward currency contracts                          1.937   (1,486.638)  
                                            ---------------- ----------------
 Net realized gain and change in unrealized                                  
  appreciation on investments                                      (79.821)  
                                                             ----------------
Net Increase in Net Assets Resulting                                         
 from Operations                                                 $ 145.613   
                                                             ================

-----------------------------------------   ---------------- ----------------
Statement of Changes in Net Assets       (dollars in millions)               
                                         Year ended September 30             

                                                         1998          1997  
-----------------------------------------   ---------------- ----------------
Operations:                                                                  
Net investment income                           $    225.434   $   221.926   
Net realized gain on investments                   1,406.817       922.766   
Net change in unrealized appreciation                                        
 on investments                                   (1,486.638)    2,567.733   
                                            ---------------- ----------------
 Net increase in net assets                                                  
 resulting from operations                           145.613     3,712.425   
                                            ---------------- ----------------

Dividends and Distributions Paid to                                          
 Shareholders:                                                               
Dividends from net investment income                (250.381)     (224.557)  
Distributions from net realized gain on                                      
 investments                                        (944.065)     (462.037)  
                                            ---------------- ----------------
 Total dividends and distributions                (1,194.446)     (686.594)  
                                            ---------------- ----------------

Capital Share Transactions:                                                  
Proceeds from shares sold: 141,823,983                                       
 and 160,556,117 shares, respectively              3,063.856     3,126.904   
Proceeds from shares issued in reinvestment                                  
 of net investment income dividends and                                      
 distributions of net realized gain on                                       
 investments: 58,921,097 and 36,204,990 shares,                              
 respectively                                      1,133.982       650.157   
Cost of shares repurchased: 112,476,829                                      
 and 78,902,097 shares, respectively              (2,398.119)   (1,534.468)  
                                            ---------------- ----------------

 Net increase in net assets resulting from                                   
  capital share transactions                       1,799.719     2,242.593   
                                            ---------------- ----------------

Total Increase in Net Assets                         750.886     5,268.424   

Net Assets:                                                                  
Beginning of year                                 16,956.084    11,687.660   
                                            ---------------- ----------------
End of year (including undistributed                                         
 net investment income: $85.257                                              
 and $115.664, respectively)                     $17,706.970   $16,956.084   
                                            ================ ================

See Notes to Financial Statements                                            

Notes to Financial Statements                                                   

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.                    

SIGNIFICANT ACCOUNTING POLICIES - The following is a summary of the significant 
accounting policies consistently followed by the fund in the preparation of its 
financial statements:                                                           

SECURITY VALUATION - Equity securities, including depositary receipts, are      
valued at the last reported sale price on the exchange or market on which such  
securities are traded, as of the close of business on the day the securities    
are being valued or, lacking any sales, at the last available bid price. In     
cases where equity securities are traded on more than one exchange, the         
securities are valued on the exchange or market determined by the investment    
adviser to be the broadest and most representative market, which may be either  
a securities exchange or the over-the-counter market. Fixed-income securities   
are valued at prices obtained from a pricing service, when such prices are      
available; however, in circumstances where the investment adviser deems it      
appropriate to do so, such securities will be valued at the mean quoted bid and 
asked prices or at prices for securities of comparable maturity, quality and    
type. Securities with original maturities of one year or less having 60 days or 
less to maturity are amortized to maturity based on their cost if acquired      
within 60 days of maturity or, if already held on the 60th day, based on the    
value determined on the 61st day. Forward currency contracts are valued at the  
mean of their representative quoted bid and asked prices. Securities and assets 
for which representative market quotations are not readily available are valued 
at fair value as determined in good faith by a committee appointed by the Board 
of Directors.                                                                   

NON-U.S. CURRENCY TRANSLATION - Assets or liabilities initially expressed in    
terms of non-U.S. currencies are translated into U.S. dollars at the prevailing 
market rates at the end of the reporting period. Purchases and sales of         
securities and income and expenses are translated into U.S. dollars at the      
prevailing market rates on the dates of such transactions. The effects of       
changes in non-U.S. currency exchange rates on investment securities are        
included with the net realized and unrealized gain or loss on investment        
securities.                                                                     

SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - As is customary in the    
mutual fund industry, securities transactions are accounted for on the date the 
securities are purchased or sold. In the event the fund purchases securities on 
a delayed delivery or "when-issued" basis, it will segregate with its custodian 
liquid assets in an amount sufficient to meet its payment obligations in these  
transactions. Realized gains and losses from securities transactions are        
reported on an identified cost basis. Dividend and interest income is reported  
on the accrual basis. Discounts and premiums on securities purchased are        
amortized.                                                                      

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions paid  
to shareholders are recorded on the ex-dividend date.                           

FORWARD CURRENCY CONTRACTS - The fund may enter into forward currency           
contracts, which represent agreements to exchange currencies of different       
countries at specified future dates at specified rates. The fund enters into    
these contracts to reduce its exposure to fluctuations in foreign exchange      
rates arising from investments denominated in non-U.S. currencies. The fund's   
use of forward currency contracts involves market risk in excess of the amount  
recognized in the statement of assets and liabilities. The contracts are        
recorded in the statement of assets and liabilities at their net unrealized     
value. The fund records realized gains or losses at the time the forward        
contract is closed or offset by a matching contract. The face or contract       
amount in U.S. dollars reflects the total exposure the fund has in that         
particular contract. Risks may arise upon entering these contracts from the     
potential inability of counterparties to meet the terms of their contracts and  
from possible movements in non-U.S. exchange rates and securities values        
underlying these instruments.                                                   

2. FEDERAL INCOME TAXATION                                                      

It is the fund's policy to continue to comply with the requirements of the      
Internal Revenue Code applicable to regulated investment companies and to       
distribute all of its net taxable income, including any net realized gain on    
investments, to its shareholders. Therefore, no federal income tax provision is 
required.                                                                       

As of September 30, 1998, net unrealized appreciation on investments, excluding 
forward currency contracts, for federal income tax purposes aggregated          
$3,584,550,000, of which $4,918,386,000 related to appreciated securities and   
$1,333,836,000 related to depreciated securities. During the year ended         
September 30, 1998, the fund realized, on a tax basis, a net capital gain of    
$1,412,023,000 on securities transactions.                                      

Net losses related to non-U.S. currency and other transactions of $5,206,000    
were treated as an adjustment to ordinary income for federal income tax         
purposes. The cost of portfolio securities,  excluding forward currency         
contracts, for federal income tax purposes was $14,137,649,000 at September 30, 
1998.                                                                           

3. FEES AND TRANSACTIONS WITH RELATED PARTIES                                   

INVESTMENT ADVISORY FEE - The fee of $72,691,000 for management services was    
incurred pursuant to an agreement with Capital Research and Management Company  
(CRMC), with which certain officers and Directors of the fund are affiliated.   
The Investment Advisory and Service Agreement provides for monthly fees,        
accrued daily, based on an annual rate of 0.60% of the first $500 million of    
average net assets; 0.50% of such assets in excess of $500 million but not      
exceeding $1 billion; 0.46% of such assets in excess of $1 billion but not      
exceeding $1.5 billion; 0.43% of such assets in excess of $1.5 billion but not  
exceeding $2.5 billion; 0.41% of such assets in excess of $2.5 billion but not  
exceeding $4 billion; 0.40% of such assets in excess of $4 billion but not      
exceeding $6.5 billion; 0.395% of such assets in excess of $6.5 billion but not 
exceeding $10.5 billion; 0.39% of such assets in excess of $10.5 billion but    
not exceeding $17 billion; and 0.385% of such assets in excess of $17 billion.  

DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution, the fund may expend 
up to 0.25% of its average net assets annually for any activities primarily     
intended to result in sales of fund shares, provided the categories of expenses 
for which reimbursement is made are approved by the fund's Board of Directors.  
Fund expenses under the Plan include payments to dealers to compensate them for 
their selling and servicing efforts. During the year ended September 30, 1998,  
distribution expenses under the Plan were $40,459,000. As of September 30,      
1998, accrued and unpaid distribution expenses were $3,058,000.                 

TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent   
for the fund, was paid a fee of $14,537,000. American Funds Distributors, Inc.  
(AFD), the principal underwriter of the fund's shares, received $11,088,228     
(after allowances to dealers) as its portion of the sales charges paid by       
purchasers of the fund's shares. Such sales charges are not an expense of the   
fund and, hence, are not reflected in the accompanying statement of operations. 

DIRECTORS' FEES - Directors and Advisory Board members who are unaffiliated     
with CRMC may elect to defer part or all of the fees earned for services as     
members of the Board. Amounts deferred are not funded and are general unsecured 
liabilities of the fund. As of September 30, 1998, aggregate amounts deferred   
and earnings thereon were $590,000.                                             

CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both wholly  
owned subsidiaries of CRMC. Certain Directors and officers of the fund are or   
may be considered to be affiliated with CRMC, AFS and AFD. No such persons      
received any remuneration directly from the fund.                               

4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES                                

The fund made purchases and sales of investment securities, excluding           
short-term securities, of $4,607,426,000 and $4,621,129,000, respectively,      
during the year ended September 30, 1998.                                       

As of September 30, 1998, accumulated undistributed net realized gain on        
investments was $1,316,503,000 and additional paid-in capital was               
$11,854,745,000. The fund reclassified $5,460,000 to undistributed net          
investment income from undistributed net realized gains for the year ended      
September 30, 1998.                                                             

Pursuant to the custodian agreement, the fund receives credits against its      
custodian fee for imputed interest on certain balances with the custodian bank. 
The custodian fee of $3,732,000 includes $95,000 that was paid by these credits 
rather than in cash.                                                            

Dividend and interest income is recorded net of non-U.S. taxes paid. For the    
year ended September 30, 1998, such non-U.S. taxes were $20,774,000. Net        
realized currency losses on dividends, interest, withholding taxes reclaimable, 
and sales of non-U.S. bonds and notes, on a book basis, were $10,527,000 for    
the year ended September 30, 1998.                                              

At September 30, 1998, the fund had outstanding forward currency contracts to   
sell non-U.S. currencies as follows:                                            

                                                        [Enlarge/Download Table]

                                                                                                 
Non-U.S. Currency      Contract Amounts               U.S. Valuation at 9/30/98                  
                       Non-U.S.          U.S.            Amount           Unrealized Appreciation

Japanese Yen expiring  Y6,890,225,000    $54,758,000     $52,821,000      $1,937,000             
9/21/99                                                                                          


                                                        [Enlarge/Download Table]
                                                                                                     
                                         Year ended   September           30                         

                                                1998        1997        1996        1995        1994 
                                        ----------- ----------- ----------- ----------- -----------  

Net Asset Value, Beginning of Year           $21.86      $17.77      $16.98      $15.40      $14.21  
                                        ----------- ----------- ----------- ----------- -----------  
 Income from Investment Operations:                                                                  
  Net investment income                         .27         .29         .32         .31         .22  
  Net realized gain and change in                                                                    
   unrealized appreciation on investment       (.11)       4.81        1.40        2.35        1.54  
                                        ----------- ----------- ----------- ----------- -----------  
   Total income from                                                                                 
 investment operations                          .16        5.10        1.72        2.66        1.76  
                                        ----------- ----------- ----------- ----------- -----------  
 Less Distributions:                                                                                 
  Dividends from net                                                                                 
 investment income                             (.31)      (.323)      (.321)      (.237)      (.173) 
  Dividends from net realized                                                                        
 non-U.S. currency gains(1)                       -       (.007)      (.009)      (.003)      (.027) 
  Distributions from net                                                                             
 realized gains                               (1.21)      (.680)      (.600)      (.840)      (.370) 
                                        ----------- ----------- ----------- ----------- -----------  
   Total distributions                        (1.52)      (1.01)       (.93)      (1.08)       (.57) 
                                        ----------- ----------- ----------- ----------- -----------  
Net Asset Value, End of Year                 $20.50      $21.86      $17.77      $16.98      $15.40  
                                        ============================================================ 

Total Return(2)                                1.23%     29.97%      10.64%       18.63%      12.61% 

Ratios/Supplemental Data:                                                                            
  Net assets, end of                                                                                 
 year (in millions)                         $17,707     $16,956     $11,688      $8,817      $6,279  
  Ratio of expenses to average                                                                       
 net assets                                     .77%        .79%        .82%        .83%       .84%  
  Ratio of net income to                                                                             
 average net assets                            1.27%       1.56%       2.00%       2.12%      1.48%  
   Portfolio turnover rate                    29.71%      25.68%      18.12%       22.40%      25.33%

(1) Realized non-U.S. currency gains                                                                 
 are treated as ordinary income for                                                                  
 federal income tax purposes.                                                                        
(2) Excludes maximum sales charge of 5.75%.                                                          


Report of Independent Accountants                                               

To the Board of Directors and Shareholders of New Perspective Fund, Inc.        

In our opinion, the accompanying statement of assets and liabilities, including 
the investment portfolio, and the related statements of operations and of       
changes in net assets and the  per-share data and ratios present fairly, in all 
material respects, the financial position of New Perspective Fund, Inc. (the    
"Fund") at September 30, 1998, the results of its operations, the changes in    
its net assets and the per-share data and ratios for the years indicated in     
conformity with generally accepted accounting principles. These financial       
statements and per-share data and ratios (hereafter referred to as "financial   
statements") are the responsibility of the Fund's management; our               
responsibility is to express an opinion on these financial statements based on  
our audits. We conducted our audits of these financial statements in accordance 
with generally accepted auditing standards which require that we plan and       
perform the audit to obtain reasonable assurance about whether the financial    
statements are free of material misstatement. An audit includes examining, on a 
test basis, evidence supporting the amounts and disclosures in the financial    
statements, assessing the accounting principles used and significant estimates  
made by management, and evaluating the overall financial statement              
presentation. We believe that our audits, which included confirmation of        
securities at September 30, 1998 by correspondence with the custodian, provide  
a reasonable basis for the opinion expressed above.                             

/s/PricewaterhouseCoopers LLP                                                   
Los Angeles, California                                                         
October 30, 1998                                                                

Tax Information (unaudited)                                                     

We are required to advise you within 60 days of the fund's fiscal year-end      
regarding the federal tax status of distributions received by shareholders      
during such fiscal year. The distributions made during the fiscal year by the   
fund were earned from the following sources:                                    

                                                        [Enlarge/Download Table]


                                      Dividends and Distributions per Share                   

To Shareholders    Payment Date       From Net        From Net Realized      From Net Realized
of Record                             Investment      Short-term Gains       Long-term Gains  
                                      Income                                                  
                                                                                              

December 12, 1997  December 15, 1997  $.19            $.155                  $1.055*          

June 5, 1998        June 8, 1998       .12            -                      -                


*Includes $0.4104 long-term capital gains taxed at a maximum rate of 28%.       

The fund also designates as a capital gain distribution a portion of earnings   
and profits paid to shareholders in redemption of their shares.                 

The fund makes an election under the Internal Revenue Code Section 853 to pass  
through non-U.S. taxes paid by the fund to its shareholders. The amount of      
non-U.S. taxes for the fiscal year ended September 30, 1998 is $0.025 on a      
per-share basis. Shareholders are entitled to a foreign tax credit or an        
itemized deduction, at their option. Generally, it is more advantageous to      
claim a credit rather than to take a deduction.                                 

Corporate shareholders may exclude up to 70% of qualifying dividends received   
during the year. For purposes of computing this exclusion, 28% of the dividends 
paid by the fund from net investment income represents qualifying dividends.    

Dividends and distributions received by retirement plans such as IRAs,          
Keogh-type plans and 403(b) plans need not be reported as taxable income.       
However, many retirement plan trusts may need this information for their annual 
information reporting.                                                          

SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE     
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX    
INFORMATION WHICH WILL BE MAILED IN JANUARY 1999 TO DETERMINE THE CALENDAR YEAR 
AMOUNTS TO BE INCLUDED ON THEIR 1998 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT   
THEIR TAX ADVISERS.                                                             

NEW PERSPECTIVE FUND                                                            

BOARD OF DIRECTORS                                                              

ELISABETH ALLISON, Cambridge, Massachusetts                                     
Administrative Director, ANZI, Ltd.;                                            
publishing consultant, Harvard Medical School                                   

MICHAEL R. BONSIGNORE, Minneapolis, Minnesota                                   
Chairman of the Board and Chief Executive Officer,                              
Honeywell Inc.                                                                  

GINA H. DESPRES, Washington, D.C.                                               
President of the fund                                                           
Senior Vice President,                                                          
Capital Research and Management Company                                         

ROBERT A. FOX, Livingston, California                                           
President and Chief Executive Officer,                                          
Foster Farms Inc.                                                               

ALAN GREENWAY, La Jolla, California                                             
Private investor; President,                                                    
Greenway Associates, Inc.                                                       
(management consulting services)                                                

KOICHI ITOH, Tokyo, Japan                                                       
Group Vice President-Asia/Pacific, Autosplice, Inc.;                            
former President and Chief Executive Officer,                                   
IMPAC (management consulting services);                                         
former managing partner, VENCA Management                                       
(venture capital)                                                               

WILLIAM H. KLING, St. Paul, Minnesota                                           
President, Minnesota Public Radio;                                              
President, Greenspring Co.;                                                     
former President, American Public Radio                                         
(now Public Radio International)                                                

JON B. LOVELACE, Los Angeles, California                                        
Vice Chairman of the Board of the fund                                          
Vice Chairman of the Board,                                                     
Capital Research and Management Company                                         

JOHN G. MCDONALD, Stanford, California                                          
The IBJ Professor of Finance,                                                   
Graduate School of Business,                                                    
Stanford University                                                             

WILLIAM I. MILLER, Columbus, Indiana                                            
Chairman of the Board,                                                          
Irwin Financial Corporation                                                     

KIRK P. PENDLETON, Southampton, Pennsylvania                                    
Chairman of the Board and                                                       
Chief Executive Officer, Cairnwood, Inc.                                        
(venture capital investment)                                                    

DONALD E. PETERSEN, Birmingham, Michigan                                        
Retired; former Chairman of the Board and                                       
Chief Executive Officer, Ford Motor Company                                     

JAMES W. RATZLAFF, San Francisco, California                                    
Senior Partner, The Capital Group Partners L.P.                                 

WALTER P. STERN, New York, New York                                             
Chairman of the Board of the fund                                               
Chairman of the Board,                                                          
Capital Group International, Inc.                                               

OTHER OFFICERS                                                                  

WILLIAM R. GRIMSLEY, San Francisco, California                                  
Senior Vice President of the fund                                               
Senior Vice President and Director,                                             
Capital Research and Management Company                                         

GREGG E. IRELAND, Washington, D.C.                                              
Senior Vice President of the fund                                               
Senior Vice President,                                                          
Capital Research and Management Company                                         

THIERRY VANDEVENTER, Geneva, Switzerland                                        
Senior Vice President of the fund                                               
Director, Capital Research and Management Company                               

JONATHAN O. KNOWLES, Ph.D., London, England                                     
Vice President of the fund                                                      
Vice President, Capital Research Company                                        

DARCY B. KOPCHO, Los Angeles, California                                        
Vice President of the fund                                                      
Executive Vice President and Director,                                          
Capital Research Company                                                        

CATHERINE M. WARD, Los Angeles, California                                      
Vice President of the fund                                                      
Senior Vice President and Director,                                             
Capital Research and Management Company                                         

VINCENT P. CORTI, Los Angeles, California                                       
Secretary of the fund                                                           
Vice President - Fund Business                                                  
Management Group,                                                               
Capital Research and Management Company                                         

R. MARCIA GOULD, Brea, California                                               
Treasurer of the fund                                                           
Vice President - Fund Business                                                  
Management Group,                                                               
Capital Research and Management Company                                         

DAYNA YAMABE, Brea, California                                                  
Assistant Treasurer of the fund                                                 
Assistant Vice President -                                                      
Fund Business Management Group,                                                 
Capital Research and Management Company                                         

MEMBERS OF THE ADVISORY BOARD                                                   

DAVID I. FISHER, Los Angeles, California*                                       
Chairman of the Board, The Capital Group                                        
Companies, Inc.; Chairman of the Board,                                         
Capital Guardian Trust Company                                                  

YOICHI FUNABASHI, Ph.D., Tokyo, Japan                                           
Chief Diplomatic Correspondent and columnist                                    
for the Asahi Shimbun                                                           

JEAN GANDOIS, Paris, France                                                     
Chairman of the Board of Cockerill-Sambre;                                      
former President, Conseil National du Patronat                                  
Francais; former Chairman of the Board and                                      
Chief Executive Officer, Pechiney; former                                       
Chairman of the Board, Pechiney International                                   

CLAUDIO X. GONZALEZ LAPORTE,                                                    
Mexico, DF, Mexico                                                              
Chairman of the Board and Chief Executive Officer,                              
Kimberly-Clark de Mexico, SA de CV                                              

SIR PETER HOLMES, London, England                                               
Director and former Chairman of the Board and                                   
Managing Director, The Royal Dutch/Shell Group                                  
of Companies                                                                    

JAE H. HYUN, New York, New York                                                 
Chairman of the Board, Tong Yang Group                                          

BARON GUALTHERUS KRAIJENHOFF,                                                   
Nijmegen, Netherlands                                                           
Chairman of the Supervisory Council, Akzo NV                                    

PIERRE LESCURE, Paris, France                                                   
Chairman of the Board and Chief                                                 
Executive Officer, Canal+                                                       

SHIJURO OGATA, Tokyo, Japan*                                                    
Non-executive Director, Fuji Xerox Co. Ltd.                                     
and Horiba Ltd.                                                                 

ALESSANDRO OVI, Rome, Italy*                                                    
Chief Executive Officer, Tecnitel                                               

ALLEN E. PUCKETT, Pacific Palisades, California                                 
Chairman Emeritus, Hughes Aircraft Company                                      

ROZANNE L. RIDGWAY, Washington, D.C.                                            
Chair, Baltic American Enterprises Fund;                                        
former co-chair, Atlantic Council of the                                        
United States                                                                   

ORVILLE H. SCHELL, Berkeley, California                                         
Dean, Graduate School of Journalism,                                            
University of California at Berkeley                                            

BRUCE B. TEELE, Melbourne, Australia                                            
Chairman of the Board, Australian Foundation                                    
Investment Co., Ltd.; former Chairman of the Board                              
and Chief Executive Officer, J.B. Were & Son                                    

*Effective October 1, 1998                                                      

DAVID I. FISHER resigned as a Director of the fund effective September 30,      
1998. The Directors thank him for his many contributions to the fund and look   
forward to his continued participation as an Advisory Board Member.             

Mr. Fisher was appointed to the Advisory Board effective October 1, 1998, as    
were Shijuro Ogata and Alessandro Ovi.                                          

OFFICES OF THE FUND AND OF THE                                                  
INVESTMENT ADVISER,                                                             
CAPITAL RESEARCH AND MANAGEMENT COMPANY                                         
333 South Hope Street                                                           
Los Angeles, California 90071-1443                                              

135 South State College Boulevard                                               
Brea, California 92821-5823                                                     

TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS                                         
American Funds Service Company                                                  
(Please write to the address nearest you.)                                      

P.O. Box 2205                                                                   
Brea, California 92822-2205                                                     

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

P.O. Box 6007                                                                   
Indianapolis, Indiana 46206-6007                                                

P.O. Box 2280                                                                   
Norfolk, Virginia 23501-2280                                                    

CUSTODIAN OF ASSETS                                                             
The Chase Manhattan Bank                                                        
One Chase Manhattan Plaza                                                       
New York, New York 10081-0001                                                   

COUNSEL                                                                         
O'Melveny & Myers LLP                                                           
400 South Hope Street                                                           
Los Angeles, California 90071-2899                                              

INDEPENDENT ACCOUNTANTS                                                         
PricewaterhouseCoopers LLP                                                      
400 South Hope Street                                                           
Los Angeles, California 90071-2889                                              

PRINCIPAL UNDERWRITER                                                           
American Funds Distributors, Inc.                                               
333 South Hope Street                                                           
Los Angeles, California 90071-1462                                              

For information about your account or any of the fund's services, please        
contact your financial adviser. You may also call American Funds Service        
Company, toll-free, at 800/421-0180 or visit www.americanfunds.com on the World 
Wide Web.                                                                       

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  
December 31, 1998, this report must be accompanied by an American Funds Group   
Quarterly Statistical Update for the most recently completed calendar quarter.  

PREPARING FOR THE YEAR 2000.                                                    

The fund's key service providers - Capital Research and Management Company, the 
investment adviser, and American Funds Service Company, the transfer agent -    
are updating their computer systems to process date-related information         
properly following the turn of the century. Both are on track to complete       
modifications of significant internal systems by the end of 1998. Testing with  
business partners, vendors and other service providers is already under way. We 
will continue to keep you up to date in our regular publications. If you'd like 
more detailed information, call Shareholder Services at 800/421-0180, ext. 21,  
or visit our Web site at www.americanfunds.com.                                 

Printed on recycled paper                                                       
Litho in USA   AGD/AL/3924                                                      
Lit. No. NPF-011-1198                                                           
[The American Funds Group(r)]                                                   

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-30D’ Filing		Date		Other Filings
		12/31/98
Filed on:		12/10/98
		11/17/98
		10/30/98
		10/1/98
For Period End:		9/30/98		24F-2NT,  485APOS,  NSAR-B
		6/8/98
		6/5/98
		3/31/98		N-30D,  NSAR-A
		12/15/97
		12/12/97
				List all Filings