What's Next for American Funds

EuroPacific Growth, $113 billionInvests in large foreign companies, both undervalued and fast-growing, with a focus on Europe. Beat 60% or more of similar funds in seven of the past ten calendar years, and year-to-date, with a loss of 10%, is slightly ahead of similar funds.

Capital World Growth and Income, $107 billionInvests in top-yielding blue-chip stocks from around the world. Beat 70% or more of similar funds in each of the past eight calendar years. Year-to-date the fund has lost 10%, matching the loss of the MSCI World index.

Capital Income Builder, $106 billionOwns high-yielding stocks and high-quality bonds from around the world. The fund delivered positive returns in each of the past eight calendar years, although it lost 8% in the first six months of 2008 and trailed most of its peers.

Income Fund of America, $78 billionBuys domestic and foreign high-yielding stocks and bonds of varying quality. Beat 88% or more of similar funds in six of the past ten calendar years, although year-to-date it is down 9% and is lagging 83% of its peers.

Investment Company of America, $77 billionLooks for large, growing, mostly domestic companies selling at cheap prices. Has zigzagged relative to peers over the past decade, although year-to-date the fund is holding up better than 70% of similar funds, with a loss of 11%.

Washington Mutual, $70 billionInvests in large, undervalued companies that pay dividends, avoiding alcohol and tobacco companies. The fund has waffled over the past decade, coming out about average for its category. In the first half of '08, it has matched the S&P 500's 12% loss.

New Perspective, $55 billionBuys large, out-of-favor companies in North America and Europe and tends to hold a lot of cash. Has outpaced at least half its peers in eight of the past ten calendar years. Year-to-date the fund has lost 9%, beating 79% of its peers.

American Balanced, $55 billionOwns cheap stocks of big, mostly domestic companies and high-quality bonds. Has outpaced at least half its peers in seven of the past ten calendar years, but year-to-date it has surrendered 8% and is lagging 70% of similar funds.

Fundamental Investors, $51 billionSeeks overlooked, growing companies, U.S. and foreign. Beat 60% or more of similar funds in eight of the past ten calendar years. In the first six months of 2008, the fund lost 7%, putting it in the top 10% of its category.