A flexible approach to U.S. growth investing

A flexible investment approach
Investing in growth

The Growth Fund of America®

INCEPTION DATE
December 1, 1973

IMPLEMENTATION
Consider for a large-cap growth allocation

OBJECTIVE
Seeks to provide growth of capital

VEHICLE

The Growth Fund of America

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Everything moves in cycles, and the markets are no different. The overall uncertain economic environment and challenges of inflation are very real concerns. These volatile periods can showcase the advantages of The Growth Fund of America's flexibility, multiple manager perspectives and long-term horizon.

A FLEXIBLE APPROACH TO GROWTH

The fund’s portfolio managers and investment analysts seek to identify innovative companies across a broad range of sectors.

A HISTORY OF RESEARCH AND RESOURCES

For years, the emphasis has been on a flexible approach to growth investing. While conducting in-depth, bottom-up research in selecting US-based companies with attractive growth opportunities, we also keep an open mind in expanding our search abroad.

A FLEXIBLE APPROACH TO GROWTH

A flexible investment approach

For more than 50 years, The Growth Fund of America has invested across sectors and industries. Many of these investments are in the companies powering economic growth and developing new products and services. The strategy’s portfolio managers and analysts seek to identify companies with attractive prospects for appreciation, including those outside of traditional growth industries.

IDENTIFYING LONG-TERM LEADERS IN A BROAD RANGE OF SECTORS

Examples of top holdings in the portfolio*

Identifying long-term leaders in a broad range of sectors. Table shows examples of top holdings in the portfolio. Companies shown are among the top holdings by weight in The Growth Fund of America. Example 1: Meta — Sector: Information technology — Market cap (in millions of U.S. dollars): 909,629. 2: Eli Lilly — Sector: Health care — Market cap (in millions of U.S. dollars): 553,370. 3: General Electric — Sector: Industrials — Market cap (in millions of U.S. dollars): 138,911

Source: FactSet as of March 31, 2024.

A HISTORY OF RESEARCH AND RESOURCES

Investing in growth

Generative artificial intelligence represents the next leg of growth opportunities for cloud computing and semiconductor demand. Portfolio managers in The Growth Fund of America view the opportunity for chips as an attractive long-term investment opportunity. The large data sets and immense need for computing power required for the technology have the potential to drive chip demand for years to come.

Research focus: AI growth is projected to boost investments in cloud infrastructure

Generative artificial intelligence represents the next leg of growth opportunities for cloud computing, but will require significant capital expenditure

The top part of the chart illustrates how AI is projected to grow as a percentage of cloud infrastructure spending. In 2019, of the $67 US billions spent on public cloud AI, 42% was spent on AI. In 2020, of the $84 US billions spent on public cloud AI, 45% was spent on AI. In 2021, of the $108 US billions spent on public cloud AI, 48% was spent on AI. In 2022, of the $136 US billions spent on public cloud AI, 50% was spent on AI. In 2023, an estimated $172 US billions was spent on public cloud AI, which is projected to be 53% of all AI spend. In 2024, an estimated $216 US billions will be spent on public cloud AI, which is projected to be 55% of all AI spend. In 2025, an estimated $268 US billions will be spent on public cloud AI, which is projected to be 57% of all AI spend. In 2026, an estimated $328 US billions will be spent on public cloud AI, which is projected to be 59% of all AI spend. The bottom part of the chart illustrates four examples of how semiconductor companies are among the fund's top holdings. Example 1: Broadcom; position in the portfolio: 4; domicile: United Sates; market capitalization in U.S. billions: $523; description: designs and manufactures semiconductors. Example 2: ASML; position in the portfolio: 14; domicile: Netherlands; market capitalization in U.S. billions: $303; description: produces photolithographic devices that are used in semiconductor manufacturing. Example 3: NVIDIA; position in the portfolio: 10; domicile: United Sates; market capitalization in U.S. billions: $1,223; description: produces graphics processing units (GPUs). Example 4: Taiwan Semiconductor Manufacturing Company; position in the portfolio: 24; domicile: Taiwan; market capitalization in U.S. billions: $501; description: designs and manufactures semiconductors. Position numbers in the portfolio are based on weight and as of December 31, 2023.

The Growth Fund of America

The Growth Fund of America is offered in various share classes designed for retirement plans, nonprofits, and other institutional and individual investors.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
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*Companies shown are among the top 20 holdings by weight in The Growth Fund of America as of 12/31/23: (Microsoft, Meta Platforms, Alphabet, Broadcom, Amazon, Tesla Inc, UnitedHealth Group, Netflix, Eli Lilly, NVIDIA, Mastercard Inc, General Electric, Vertex Pharmaceuticals, ASML, Salesforce, TransDigm Group, Regeneron Pharmaceuticals, Uber, Royal Caribbean Cruises, Carrier Global).