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A Look at AMCPX’s Portfolio Moves until 1Q16

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The American Funds AMCAP Fund

The American Funds AMCAP Fund Class A (AMCPX) “invests primarily in U.S. companies of any size with solid long-term growth records and the potential for good future growth.” Fund managers can invest in companies based outside the United States, but they’ll do it to a restricted degree only.

The fund is managed by four fund managers. The overall portfolio is divided into distinct segments that are managed by individual managers. Fundamental analysis is used by managers to choose suitable securities for the portfolio. The process includes meeting with company executives and employees, suppliers, customers, and competitors.

The fund’s assets were invested across 248 holdings (stocks, bonds, and cash) as of March 2016, and it was managing assets worth $46.9 billion as of March’s end.

As of March, AMCPX’s top ten equity holdings included Amgen (AMGN), Oracle (ORCL), Class A shares of Accenture (ACN), Alexion Pharmaceuticals (ALXN), and Skyworks Solutions (SWKS). These securities made up a combined 10.1% of the fund’s portfolio.

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Portfolio changes in the American Funds AMCAP Fund

For this analysis, we’ll be considering AMCPX’s holdings as of December 2015, as that is the latest available sectoral breakdown. The fund’s holdings post-December reflect valuation-driven changes to its portfolio, not its actual holdings. Keep in mind that the fund discloses its portfolio holdings once per quarter.

In March 2015, AMCPX had one-tenth of its assets invested in bonds. Though this exposure fell as 2015 unfolded, AMCPX’s December portfolio pushed exposure upward again to 10%. As of March 2016, exposure was in the low single-digits, showing that managers had deployed that money into equities.

Information technology, healthcare, consumer discretionary, and industrials are the core sectors in which AMCPX invests. These sectors form more than one-tenth of AMCPX’s portfolio, with the first two forming more than one-fifth of its assets. Energy stocks make up 7% of the fund.

Information technology stocks form a bigger chunk of the fund than they did one year ago. So far in 2016, there have been two exits from the sector. Exposure to the consumer discretionary sector has fallen sharply from one-fifth of the fund’s assets one year ago to 12% at present.

Except for five stocks, fund managers have held onto others from the sector, but they’ve reduced exposure to most.

What can the fund’s 1Q16 performance be attributed to? Let’s look at that in the next article.

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