UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM N-CSR
Certified Shareholder Report of
Registered Management Investment Companies

Investment Company Act File Number: 811-05364



American High-Income Trust
(Exact Name of Registrant as Specified in Charter)

333 South Hope Street
Los Angeles, California 90071
(Address of Principal Executive Offices)




Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: September 30

Date of reporting period: September 30, 2012





Courtney R. Taylor
American High-Income Trust
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)


Copies to:
Michael Glazer
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, California 90071
(Counsel for the Registrant)


 
 
 

ITEM 1 – Reports to Stockholders
 
 
 
 
 
 
American High-Income Trust ®
 
 
[photo of people walking on a spiral staircase]
 
Special feature

The anatomy of an investment: from research to returns

See page 4

Annual report for the year ended September 30, 2012
 
 
American High-Income Trust seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.

This fund is one of more than 40 offered by American Funds, which is one of the nation’s largest mutual fund families. For more than 80 years, Capital Research and Management Company, SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors 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, so they may lose value. For current information and month-end results, visit americanfunds.com.

Results at a glance
                       
For periods ended September 30, 2012, with all distributions reinvested
                       
                         
   
Total returns
   
Average annual total returns
 
   
1 year
   
5 years
   
10 years
   
Lifetime
 
                     
(since 2/19/88)
 
American High-Income Trust
                       
(Class A shares)
    16.4 %     6.6 %     9.9 %     8.6 %
                                 
Barclays U.S. Corporate High Yield 2%
                               
Issuer Capped Index*
    19.4       9.5       10.9       —  
                                 
Lipper High Yield Funds Index
    18.3       6.8       9.2       7.2  
                                 
*This market index did not exist prior to December 31, 1992. It is unmanaged and, therefore, has no expenses.
                 

Since its inception through September 30, 2012, American High-Income Trust ranked 3rd in total return among the 31 high current yield funds in existence throughout the period, according to Lipper. For the 10 years ended September 30, 2012, the fund ranked 59th of 256; for the five years ended September 30, 2012, it ranked 259th of 372; and for the 12 months ended September 30, 2012, it ranked 397th of 496. Lipper rankings do not reflect the effect of sales charges.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

The fund’s 30-day yield for Class A shares as of October 31, 2012, calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula, was 5.06%. The fund’s 12-month distribution rate for Class A shares as of that date was 7.00%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

See page 3 for Class A share results with relevant sales charges deducted. Results for other share classes can be found on page 30.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from Aaa/AAA (highest) to D (lowest), are assigned by credit rating agencies such as Moody’s, Standard & Poor’s and/or Fitch as an indication of an issuer’s creditworthiness. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
 
 
Fellow investors:

High-yield bond markets posted double-digit returns for the fiscal year ended September 30, 2012, as investors’ appetite for risk increased, leading them to seek higher yielding debt amid signs of an improving U.S. economy and progress in resolving the euro zone debt crisis. The European Central Bank (ECB) announced an unlimited bond-buying program, helping investors overcome worries about the future of the euro zone. Market sentiment was also helped after the U.S. Federal Reserve announced that it would provide additional stimulus measures.

In this environment, American High-Income Trust reported a total return of 16.4% for the 12 months ended September 30, assuming the reinvestment of monthly dividends totaling more than 82 cents a share. Shareholders who reinvested dividends received an income return of 8.2% for the year. Those who elected to take their dividends in cash received an income return of 8.0% and saw the value of their holdings increase by 7.9%.

By comparison, the Lipper High Yield Funds Index, a benchmark of similar funds, posted a total return of 18.3%, and the Barclays U.S. Corporate High Yield 2% Issuer Capped Index, which covers the universe of fixed-rate, non-investment-grade debt and limits the maximum exposure of any one issuer to 2%, returned 19.4%. The latter market index is unmanaged and, therefore, has no expenses.

The year in review

Monetary easing by central banks around the world allayed investor concerns about a global economic slowdown. Reacting to disappointing economic indicators, the ECB and the Fed unveiled aggressive new bond-buying programs aimed at lowering borrowing costs and boosting the U.S. and European economies. The central bank intervention helped to calm investors’ worries about a global economic slowdown and disorderly euro-zone breakup, supporting a strong rally in riskier assets.

Corporate bonds fared well, particularly at the lower end of the credit spectrum, as investors continued to search for yield in a low interest rate environment. High-yield bonds generally did better than investment-grade bonds, with all major sectors gaining ground amid improving corporate health. Strength in the market was broad-based as many companies bolstered their cash flow, profitability and balance sheets. A number of firms were able to refinance their debt at lower costs, improve liquidity and lengthen bond maturities.
 
 
[photo of people walking on a spiral staircase]

[Begin Sidebar]
In this report
 
   
 
Special feature
   
4
The anatomy of an investment: from research to returns
   
   
 
Contents
   
1
Letter to investors
   
3
The value of a long-term perspective
   
10
Summary investment
 
portfolio
   
15
Financial statements
   
31
Board of trustees and other officers
[End Sidebar]

[Begin Sidebar]
High-yield bonds generally did better than investment-grade bonds, with all major sectors gaining ground amid improving corporate health.
[End Sidebar]

While the outlook for the U.S. economy continues to improve, growth is likely to be modest by historical standards. With the Fed’s commitment to keeping interest rates low, demand has increased for high-yield bonds from investors in search of income. Broadly, total returns for below-investment-grade (BB and below) bonds eclipsed those of investment-grade (BBB and above) bonds during the fiscal year as investors’ tolerance for risk increased.

Likewise, the ECB’s recent efforts to support local bond markets, along with central bank easing in developing markets, have helped reduce risks and raise investors’ hopes for a recovery in global economic growth, despite a negative outlook for the euro zone. Total returns for non-U.S. high-yield bonds were broadly in line with their U.S. counterparts, with bonds in developing markets posting the best returns. The fund’s exposure to non-U.S. bonds rose to more than 18%.

High-yield bonds still have higher yields than other fixed-income and equity asset classes, which has boosted demand from investors seeking income. This demand has been met by new issuance, which has been robust all year as companies have sought to take advantage of historically low interest rates. But the new issuance has failed to keep pace with the demand, and as a result yields have been driven down to near-record lows. With low absolute yields and strong demand from high-yield bond buyers, some companies are finding it more attractive to increase their debt load in addition to refinancing it, which can increase risks to existing holdings. In such a rapidly changing market, strong research is more important than ever (see the related feature story starting on page 4 that highlights three recent investments).

A long-term perspective

Much uncertainty remains in the market. Political upheaval is further complicating the debt problems in the U.S. and Europe as well as the economic prospects for China. With these issues in mind and on the heels of several years of strong returns, our investment managers are taking a slightly more cautious view of the market. While volatility in the high-yield market should be expected, it is important to remember that investors who have maintained a long-term perspective have been rewarded with solid returns and a steady source of income. For the past 10-year period ended September 30, 2012, the fund’s shareholders earned an average annual total return of 9.9%, with dividends reinvested. That compares with a 9.2% average annual total return for the Lipper High Yield Funds Index and a 10.9% gain for the Barclays U.S. Corporate High Yield 2% Issuer Capped Index for that same period.

As always, we appreciate your continued support and long-term investment perspective.

Sincerely,

/s/ David C. Barclay

David C. Barclay
President

November 12, 2012

For current information about the fund, visit americanfunds.com.


The value of a long-term perspective

Here’s how a $10,000 investment in American High-Income Trust grew between February 19, 1988, when the fund began operations, and September 30, 2012, the end of its latest fiscal year. As you can see, that $10,000 grew to $72,988 with all distributions reinvested.

Fund results shown reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment. 1 Thus, the net amount invested was $9,625. 2
 
[begin mountain chart]
Year ended
Sept. 30th
 
American
High-Income
Trust
   
Barclays U.S. Corporate High Yield 2% Issuer Capped Index 3,4
   
Lipper High
Yield Funds
Index 5
   
Consumer
Price Index (inflation) 6
 
                         
2/19/88
  $ 9,625     $ 10,000     $ 10,000     $ 10,000  
1988
    10,182       10,447       10,475       10,328  
1989
    11,189       11,026       10,935       10,776  
1990
    10,735       10,047       9,570       11,440  
1991
    13,873       13,757       12,290       11,828  
1992
    16,376       16,573       15,132       12,181  
1993
    18,764       18,976       17,473       12,509  
1994
    19,066       19,580       17,899       12,879  
1995
    21,604       22,549       20,178       13,207  
1996
    24,570       25,034       22,644       13,603  
1997
    28,176       28,661       26,120       13,897  
1998
    27,491       29,160       25,688       14,103  
1999
    29,721       30,002       27,037       14,474  
2000
    31,295       30,288       27,021       14,974  
2001
    30,218       28,647       23,569       15,371  
2002
    28,442       28,400       22,814       15,603  
2003
    38,197       36,766       28,862       15,966  
2004
    42,235       41,372       32,215       16,371  
2005
    45,421       44,096       34,421       17,138  
2006
    49,174       47,286       36,744       17,491  
2007
    53,103       50,887       39,586       17,973  
2008
    46,800       45,540       35,054       18,861  
2009
    53,376       55,792       39,311       18,618  
2010
    62,318       65,967       46,058       18,831  
2011
    62,731       67,119       46,476       19,559  
2012
    72,988       80,108       54,967       19,949  
[end mountain chart]
 
1 As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
 
2 The maximum initial sales charge was 4.75% prior to January 10, 2000.
 
3 The market index is unmanaged and, therefore, has no expenses.
 
4 From February 19, 1988, through December 31, 1992, the Credit Suisse High Yield Index was used because the Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index did not yet exist. Since January 1, 1993, the Barclays U.S. Corporate High Yield 2% Issuer Capped Index has been used.
 
5 Results of the Lipper High Yield Funds Index do not reflect any sales charges.
 
6 Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.
 
7 For the period February 19, 1988 (when the fund began operations) through September 30, 1988.

Past results are not predictive of results for future periods. The results shown are before taxes on fund distributions and sale of fund shares.
 
 
Average annual total returns based on a $1,000 investment (for periods ended September 30, 2012)*
                 
                   
   
1 year
   
5 years
   
10 years
 
Class A shares
    12.03 %     5.76 %     9.47 %
                         
*Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.
                       

The total annual fund operating expense ratio is 0.69% for Class A shares as of the prospectus dated December 1, 2012 (unaudited).

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
 
 
[Begin Sidebar]
The anatomy of an investment: from research to returns
[End Sidebar]
 
[photo of a spiral staircase from below looking up]
[Begin Pull Quote]
“Situations present themselves in different ways, but no matter how you approach an investment, you need to have the deep research to be able to do the fundamental business and company analysis.”

David Barclay
Portfolio counselor
[photo of David Barclay]
[End Pull Quote]

A struggling mid-size lender trying to emerge from bankruptcy in the aftermath of the financial crisis. An aircraft leasing firm whose parent company required a government bailout. A small oil and gas pipeline company affiliated with a bigger and stronger industry player. Three very different companies, each one requiring a different approach, but that shared some common traits when it came to evaluating their investment prospects for American High-Income Trust.  

In the wide-ranging and dynamic high-yield bond market, there are a variety of ways to find the most attractive investments. Sometimes opportunities emerge in moments of crisis, as was the case in 2008 when American International Group, the parent company of International Lease Finance Corp., needed a bailout, and in 2009 when CIT Group filed for bankruptcy. Other times it can be that a company has ties to a larger firm that actually makes it more attractive than it may first seem, as it is with Regency Energy Partners and Energy Transfer Partners. While these investments illustrate the breadth of approaches used in American High-Income Trust, they also exemplify a process that draws heavily on collaboration across investment and research groups.

Regardless of the circumstances, the importance of having a strong research organization in place to evaluate the investment opportunities cannot be underestimated. “Using our depth of research is important when making all investment decisions,” says fund President David Barclay, also a portfolio counselor for the fund. “There are a number of different ways of finding investment opportunities for the fund in this diverse and changing marketplace, so it is even more important to have that broad and flexible research operation in place.”

Each of the three cases that follow highlight both the importance of strong research as well as the diversity of approaches the analysts and portfolio counselors take when making investment decisions. In each case, rigorous research led to a unique opportunity and a decision was made to invest in the company. The fund has benefited from these investment decisions in recent years but behind every investment there is a story. In the following pages, three analysts share those stories.
 
[photo of two men walking on a spiral staircase]
[Begin Sidebar]
CIT Group is a diversified lender to both small and medium-sized companies, and operates a strong leasing portfolio.
[End Sidebar]

Company in crisis: CIT Group

The fallout from the 2008 financial crisis was far and wide and is still being felt in many respects. In some cases, companies went under — the most prominent example being Lehman Brothers — while in other situations, the government bailed out firms or arranged a merger, as it did with Bear Stearns. Then there are the relative success stories, like New York-based CIT Group, which filed for bankruptcy in the aftermath of the financial crisis but was able to re-emerge as a leaner but stronger company.

CIT is a diversified lender to both small and medium-sized companies, and operates a strong leasing portfolio. During the financial crisis, however, the company suffered a double hit. CIT, which funded itself with short-term debt and made long-term loans to customers, faced mounting pressure when liquidity dried up in the credit market and it became increasingly difficult to fund its near-term maturities. At the same time, many of its customers also faced liquidity pressures as economic and operating trends deteriorated, causing them to make late payments or to default. Many of CIT’s customers accelerated requests for funding on committed loan lines, requiring the company to raise even more cash to fund them, which put additional pressure on its balance sheet.

The company initially was able to obtain more than $5 billion in government funding and from private investors. But by late 2009, CIT was forced to file for bankruptcy protection. This presented an opportunity for American High-Income Trust to get involved directly as a creditor in the firm’s restructuring. The fund lent CIT an emergency facility to provide liquidity and allow it to emerge from bankruptcy. In doing so, the fund was also able to make an investment in the company’s new loans at an attractive rate. “It’s not that common but we have the ability to do it,” David says of the emergency lending facility to CIT. “Situations present themselves in different ways, but no matter how you approach an investment, you need to have the deep research to be able to do the fundamental business and company analysis.”

That’s where analyst Jonathan Deeringer entered the picture. His research led him to conclude that CIT’s underwriting business, which he thought was difficult to replicate due to its complexity and longevity, was not broken. If the company could ride out a difficult post-bankruptcy period of balance sheet restructuring, Jonathan believed market trends would gradually recover and CIT would be able to take advantage of an easing competitive environment as traditional banks pulled back from the lending market. In addition, he was encouraged by the company’s improved liquidity, strong asset base and new management team, led by former Merrill Lynch CEO John Thain.
 
[photo of a window]
 
[photo of a pen and a pair of glasses on a piece of paper]

 
“We believed that if given enough breathing room and if credit quality trends stabilized, CIT had the underwriting structure in place for the company to return to lending growth under new management as the banks pulled back,” explains Jonathan, adding that even if that thesis didn’t play out as expected, he was still comfortable making the investment. “When we saw that CIT entered bankruptcy, we did an analysis showing that even if the company stopped lending, the value of its assets in the wind-down process would be able to cover its secured debt.”
 
Fortunately, CIT was able to emerge from bankruptcy and to gradually increase its lending activities. This has allowed for further investment in the company to support its efforts to rebuild a healthier lending platform. “What’s happened since then is that credit quality has indeed stabilized and CIT has shrunk its balance sheet, returning to its core lending niches,” he says, noting that the company has been able to reduce its financing costs over time. “The return on assets has improved and CIT has dramatically strengthened its liquidity and capital cushion to the point where the company is better off than it was before bankruptcy.”

Jonathan says the next leg of the thesis is for CIT to continue on its path to more profitable lending, and ultimately to achieve an investment-grade rating. He said the latter could be influenced by the Federal Reserve, which is reviewing the conditions of CIT’s supervisory arrangement that were set under its bankruptcy. “CIT has the strongest tangible capital ratios of any major bank in the U.S.,” he notes. “I expect the Fed to relax the restrictions soon, which will remove a key obstacle in the company returning to investment grade.” He says CIT has already replaced secured debt with unsecured debt at low costs, which has freed up a lot of assets on its balance sheet, but ratings agencies have been slow to recognize its progress.

In the end, Jonathan says he would not have been able to move forward on the investment in CIT Group were it not for the strong leadership and collaborative efforts of his colleagues. He says he consulted with other analysts inside and outside of his group in order to get a better understanding of the regulatory environment, securitization markets, and the bankruptcy process. “Investing in emergency loans can be risky, but the depth of the research team and our willingness to take a more active lending role than typical made it possible,” he says. “It was a unique environment, but we were able to step back and see the benefits of financing a company in that situation.”

[Begin Pull Quote]
[photo of Jonathan Deeringer]
“Investing in emergency loans can be risky, but the depth of the research team and our willingness to take a more active lending role than typical made it possible. It was a unique environment, but we were able to step back and see the benefits of financing a company in that situation.”
Jonathan Deeringer
Investment analyst
[End Pull Quote]

[Begin Sidebar]
Los Angeles-based International Lease Finance Corp. is the global market leader in commercial jet aircraft leasing.
[End Sidebar]
 
[close-up photo of a jet engine]
[Begin Pull Quote]
[photo of Tara Torrens]
“The airline industry was doing well despite the downturn, and by working with the insurance analyst I was able to better understand that industry and how it fit in with airlines. As a result, we developed a view different than that of the market and made the investment.”
Tara Torrens
Investment analyst
[End Pull Quote]

Collaborative effort: International Lease Finance Corp.

Like CIT, the opportunity to invest in International Lease Finance Corp. came about in the aftermath of the financial crisis. ILFC’s parent company, insurance firm American International Group, was deemed “too big to fail” and received a $182 billion government bailout. The association with AIG had typically been considered a strong suit for Los Angeles-based ILFC, which issued its own debt but relied on the higher credit rating of its larger parent to help keep its financing costs lower. However, when ratings agencies downgraded AIG’s credit in 2008 in advance of the company’s bailout, ILFC was also negatively impacted.

The airline leasing company ran into its own liquidity problems as a result of AIG’s downgrade and financing long-term assets with short-term liabilities, which required frequent refinancing and continuous access to bond markets. ILFC’s bonds dropped precipitously, trading near 50 cents on the dollar, as liquidity issues mounted. This piqued the interest of airline analyst Tara Torrens, who began evaluating the investment opportunity with her insurance analyst counterpart who covered AIG. Even though Tara hadn’t directly covered ILFC, she was familiar with the airline industry and knew how the leasing process worked. In collaborating with the insurance analyst, who provided his views on ILFC parent AIG, she was able to take a broader approach and better understand the investment opportunity.

“We started investing in the bonds of ILFC on the view that the company’s core fundamentals were good and its asset base was solid in spite of the issues at AIG,” recalls Tara. “The airline industry was doing well despite the downturn, and by working with the insurance analyst I was able to better understand that industry and how it fit in with airlines. As a result, we developed a view different than that of the market and made the investment. We concluded that regardless of the outcome, our investment in the bonds was protected by the value of the company’s business.”

Indeed, the investment in ILFC bonds, which were yielding about 15% at the time, has paid off and the fund has since sold most of its position in the bonds, now yielding around 5%. David Barclay commends the investment and the collaboration between Tara and the insurance analyst. “AIG was thought of as the better credit; then the roles reversed and ILFC looked better than AIG,” he says in recalling the circumstances that allowed for the investment to be made at the height of the financial crisis. “The price became attractive for ILFC bonds and because of our ability to collaborate and approach the investment from different angles, the crisis at AIG provided us with the opportunity to make the investment.”
 
[photo of gas pipeline]
 
[Begin Sidebar]
Regency Energy Partners is a midstream oil and gas pipeline company that is affiliated with larger firm Energy Transfer Partners.
[End Sidebar]

Symbiotic relationship: Regency Energy Partners

Like ILFC, midstream oil and gas pipeline company Regency Energy Partners is affiliated with a larger entity, another midstream firm known as Energy Transfer Partners. This relationship, as well as Regency Energy’s transition to more stable revenue generation, is what initially attracted analyst Damien McCann to the company. Regency Energy owns assets that are broadly similar to Energy Transfer, an investment-grade company he was already covering in his research. But because Dallas-based Regency Energy was smaller, it was not considered investment grade, even though the credit risk was similar. After conducting further due diligence on Regency Energy and collaborating with other analysts, Damien says he became comfortable enough with the investment to move forward.

“It was an investment made with the expectation that Regency Energy will benefit from increased scale through additional organic growth, acquisitions or possibly even a consolidation with Energy Transfer,” explains Damien. “Regency Energy has high-yield peers in the industry that lack the association with a larger entity, making the potential for an upgrade somewhat unique.”

Since the initial investment in 2011, Regency Energy has continued to grow through acquisition and organic expansion, but the pace has not been quite as fast as Damien would have liked. “Regency Energy has been a solid, steady investment, providing decent returns for the fund,” he says. “I had hoped for more rapid growth, but my long-term investment thesis remains intact.”

For David Barclay, the Regency Energy investment highlights yet another approach to finding the best opportunities for American High-Income Trust, which he noted has also invested in Energy Transfer. “Sometimes there are investment-grade holdings that provide an attractive risk-return profile for the fund but also help give us a broader perspective of the markets and potential investments,” he notes. “In the case of Energy Transfer, our knowledge of the investment-grade market and the ability to look across the ratings spectrum gave us even more insight into the high-yield market, and using our research capabilities we were able to make an investment in a lesser-known issuer like Regency Energy.” ¾

[Begin Pull Quote]
[photo of Damien McCann]
“It was an investment made with the expectation that Regency Energy will benefit from increased scale through additional organic growth, acquisitions, or possibly even a consolidation with Energy Transfer. Regency Energy has high-yield peers in the industry that lack the association with a larger entity, making the potential for an upgrade somewhat unique.”
Damien McCann
Investment analyst
[End Pull Quote]
 
 
Summary investment portfolio     September 30, 2012
 
The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings.  See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
 
[begin pie chart]
Portfolio by type of security
 
(percent of net assets)
 
       
U.S. corporate bonds & notes
    61.7 %
Corporate bonds & notes of issuers outside the U.S.
    12.8  
Corporate loans
    9.8  
U.S. Treasury bonds & notes
    0.5  
Common stocks & warrants
    1.4  
Convertible securities
    0.7  
Preferred securities
    0.5  
Other
    4.8  
Short-term securities & other assets less liabilities
    7.8  
[end pie chart]
 
 
     
Principal
         
Percent
 
     
amount
   
Value
   
of net
 
Bonds, notes & other debt instruments - 89.54%
      (000 )     (000 )  
assets
 
Corporate bonds, notes & loans - 84.22%
                       
Consumer discretionary - 17.72%
                       
MGM Resorts International 5.875%-13.00% 2013-2022 (1)
    $ 305,855     $ 324,303       1.64 %
Charter Communications, Inc. 13.50% 2016
      46,320       50,373          
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 7.25%-8.125% 2017-2020
      139,500       153,577          
CCO Holdings LLC and CCO Holdings Capital Corp. 7.00%-7.375% 2019-2020
      33,000       36,664       1.22  
EchoStar DBS Corp 7.125%-7.75% 2015-2016
      12,000       13,420          
DISH DBS Corp.:
                         
  4.625 % 2017  (1)     95,950       98,589          
  5.875%-7.875 % 2019-2022  (1)     96,240       102,768       1.08  
Boyd Gaming Corp.:
                         
  9.125 % 2018     82,070       86,584          
  6.75%-9.00 % 2014-2020  (1)     117,090       118,350       1.03  
Needle Merger Sub Corp. 8.125% 2019 (1)
      121,855       124,901       .63  
Univision Communications Inc., Term Loan B, 4.466% 2017 (2) (3) (4)
      122,468       121,243       .61  
Virgin Media Finance PLC, Series 1, 9.50% 2016
      88,775       98,762       .50  
Revel Entertainment, Term Loan B, 9.00% 2017 (2) (3) (4)
      117,150       93,093       .47  
Clear Channel Worldwide Holdings, Inc., Series B, 9.25% 2017
      82,450       89,252       .45  
Other securities
              1,998,210       10.09  
                  3,510,089       17.72  
                             
Telecommunication services - 11.79%
                         
Nextel Communications, Inc.,:
                         
Series F, 5.95% 2014
      117,065       117,650          
Series D, 7.375% 2015
      62,258       62,647          
Sprint Nextel Corp.:
                         
  8.375 % 2017     83,450       93,255          
  7.00 % 2020     108,500       113,247          
  6.00%-11.50 % 2016-2021  (1)     139,555       163,399          
Sprint Capital Corp. 6.90%-8.75% 2019-2032
      9,800       10,204       2.83  
Frontier Communications Corp.:
                         
  8.25 % 2017     125,266       142,803          
  8.50 % 2020     72,760       82,583          
  7.125 % 2023     100,875       105,288          
  8.125%-9.25 % 2018-2022     99,293       114,271       2.25  
Clearwire Communications and Clearwire Finance, Inc.,:
                         
Series B, 12.00% 2015 (1)
      123,930       123,310          
Series A, 12.00% 2015 (1)
      120,730       120,126          
  12.00%-14.75 % 2016-2017  (1)     103,530       98,070       1.72  
Cricket Communications, Inc.:
                         
  7.75 % 2016     178,140       188,828          
  7.75%-10.00 % 2015-2020     81,595       83,906       1.38  
Wind Acquisition SA 11.75% 2017 (1)
      140,330       132,963       .67  
LightSquared, Term Loan B, 12.00% 2014 (3) (4) (5) (6)
      144,713       101,842       .51  
Other securities
              481,251       2.43  
                  2,335,643       11.79  
                             
Financials - 10.41%
                         
Realogy Corp.:
                         
Term Loan B, 4.478% 2016 (2) (3) (4)
      140,462       139,057          
Letter of Credit, 4.491% 2016 (2) (3) (4)
      11,765       11,647          
Second Lien Term Loan A, 13.50% 2017 (3) (4)
      147,699       149,545          
  7.875 % 2019  (1)     145,435       153,434          
  9.00 % 2020  (1)     87,735       97,167          
  7.625%-10.50 % 2014-2020  (1)     4,000       4,367       2.80  
CIT Group Inc.,:
                         
Series C, 4.75% 2015 (1)
      135,300       141,727          
  5.00 % 2017     96,625       103,630          
  4.25%-5.50 % 2017-2019  (1)     62,050       66,078       1.57  
International Lease Finance Corp. 4.875% 2015
      126,930       132,409       .67  
Other securities
              1,062,460       5.37  
                  2,061,521       10.41  
                             
Industrials - 10.20%
                         
CEVA Group PLC:
                         
  12.75 % 2020  (1)     122,000       101,565          
  8.375%-11.625 % 2016-2018  (1)     115,112       109,875       1.07  
Ply Gem Industries, Inc. 8.25% 2018
      147,025       154,192       .78  
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017
      143,967       141,808       .72  
BE Aerospace, Inc. 5.25% 2022
      103,270       107,659       .54  
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 4.25% 2014 (2) (3) (4)
      163,487       107,084       .54  
Nortek Inc.:
                         
  10.00 % 2018  (7)     47,735       52,986          
  8.50 % 2021  (7)     47,660       50,996       .52  
DAE Aviation Holdings, Inc. 11.25% 2015 (1)
      82,414       85,299       .43  
Other securities
              1,109,390       5.60  
                  2,020,854       10.20  
                             
Health care - 8.88%
                         
VWR Funding, Inc.,:
                         
Series B, 10.25% 2015 (6)
      138,533       141,824          
  7.25 % 2017  (1)     77,125       78,426       1.11  
VPI Escrow Corp. 6.375% 2020 (1)
      121,060       124,087       .63  
PTS Acquisition Corp. 9.50% 2015 (6)
      119,206       122,037       .62  
Quintiles, Term Loan B, 5.00% 2018 (2) (3) (4)
      118,813       119,704       .60  
Kinetic Concepts, Inc. 10.50% 2018 (1)
      94,405       100,305       .51  
inVentiv Health Inc. 10.00% 2018 (1)
      91,315       80,814       .41  
Other securities
              991,410       5.00  
                  1,758,607       8.88  
                             
Materials - 7.02%
                         
Reynolds Group Inc.:
                         
  9.875 % 2019     121,160       129,490          
  5.75 % 2020  (1)     187,475       187,709          
  7.125%-9.00 % 2018-2019     67,985       71,749       1.96  
Inmet Mining Corp. 8.75% 2020 (1)
      104,955       109,153       .55  
Georgia Gulf Corp. 9.00% 2017 (1)
      81,885       91,916       .47  
Other securities
              800,150       4.04  
                  1,390,167       7.02  
                             
Information technology - 6.72%
                         
First Data Corp.:
                         
  11.25 % 2016     185,840       181,194          
Term Loan D, 5.217% 2017 (2) (3) (4)
      73,036       72,205          
  12.625 % 2021     113,026       117,688          
  6.75%-10.55 % 2015-2022  (1)  (2)  (6)     202,078       204,562       2.91  
Blackboard Inc., Term Loan B, 7.50% 2018 (2) (3) (4)
      94,994       96,003       .49  
SRA International, Inc., Term Loan B, 6.50% 2018 (2) (3) (4)
      91,412       90,650       .46  
NXP BV and NXP Funding LLC 10.00% 2013 (8)
      77,049       81,680       .41  
Other securities
              486,230       2.45  
                  1,330,212       6.72  
                             
Energy - 5.93%
                         
Other securities
              1,175,051       5.93  
                             
Consumer staples - 3.11%
                         
Other securities
              616,445       3.11  
                             
Utilities - 2.44%
                         
TXU, Term Loan, 4.728% 2017 (2) (3) (4)
      139,658       96,434       .49  
Other securities
              386,386       1.95  
                  482,820       2.44  
                             
Total corporate bonds, notes & loans
              16,681,409       84.22  
                             
U.S. Treasury bonds & notes - 0.52%
                         
U.S. Treasury 1.375%-3.25% 2013-2016
      99,500       103,028       .52  
                             
Other - 4.80%
                         
Other securities
              951,674       4.80  
                             
Total bonds, notes & other debt instruments (cost: $17,230,789,000)
              17,736,111       89.54  
                             
                             
                             
       
Principal
           
Percent
 
       
amount
   
Value
   
of net
 
Convertible securities - 0.69%
      (000 )     (000 )  
assets
 
                             
                             
Telecommunication services - 0.09%
                         
Leap Wireless International, Inc. 4.50% convertible notes 2014
    $ 12,500       11,968       .06  
Clearwire Corp. 8.25% convertible notes 2040 (1)
    $ 7,722       5,642       .03  
                  17,610       .09  
                             
Other - 0.60%
                         
Other securities
              118,310       .60  
                             
Total convertible securities (cost: $124,915,000)
              135,920       .69  
                             
                             
                             
                       
Percent
 
               
Value
   
of net
 
Preferred securities - 0.52%
              (000 )  
assets
 
                             
Financials - 0.52%
                         
Other securities
              103,619       .52  
                             
Total preferred securities (cost: $91,542,000)
              103,619       .52  
                             
                             
                             
       
Shares
           
Percent
 
               
Value
   
of net
 
Common stocks - 1.40%
              (000 )  
assets
 
                             
                             
Financials - 0.30%
                         
CIT Group Inc. (9)
      124,904       4,920       .02  
Other securities
              55,191       .28  
                  60,111       .30  
                             
Telecommunication services - 0.15%
                         
Frontier Communications Corp., Class B
      6,000,000       29,400       .15  
                             
Other - 0.95%
                         
Other securities
              187,885       .95  
                             
                             
Total common stocks (cost: $241,992,000)
              277,396       1.40  
                             
                             
                             
       
Shares
           
Percent
 
               
Value
   
of net
 
Warrants - 0.03%
              (000 )  
assets
 
                             
Consumer discretionary - 0.03%
                         
Charter Communications, Inc., warrants, expire 2014 (9)
      13,390       348       .00  
Other securities
              5,511       .03  
                  5,859       .03  
                             
Energy - 0.00%
                         
Other securities
              153       .00  
                             
                             
Total warrants (cost: $7,329,000)
              6,012       .03  
                             
                             
                             
       
Principal
           
Percent
 
       
amount
   
Value
   
of net
 
Short-term securities - 8.39%
      (000 )     (000 )  
assets
 
                             
Freddie Mac 0.10%-0.17% due 10/2/2012-5/29/2013
    $ 385,500     $ 385,397       1.95  
Federal Home Loan Bank 0.11%-0.19% due 10/16/2012-3/15/2013
      361,600       361,491       1.82  
Fannie Mae 0.135%-0.19% due 10/1/2012-7/1/2013
      339,750       339,619       1.71  
U.S. Treasury Bills 0.12%-0.16% due 10/25/2012-5/30/2013
      163,500       163,458       .83  
Other securities
              411,720       2.08  
                             
                             
Total short-term securities (cost: $1,661,603,000)
              1,661,685       8.39  
                             
                             
Total investment securities (cost: $19,358,170,000)
              19,920,743       100.57  
Other assets less liabilities
              (112,073 )     (.57 )
                             
Net assets
            $ 19,808,670       100.00 %
 
 
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.
 
 
Forward currency contracts

The fund has entered into forward currency contracts to purchase or sell currencies as shown in the following table. The open forward currency contracts shown are generally indicative of the level of activity over the prior 12-month period.
 
         
Contract amount
   
Unrealized appreciation
 
 
Settlement date
 
Counterparty
 
Receive
(000)
   
Deliver
(000)
(depreciation)
at 9/30/2012
 
                         
Purchases:
                       
Russian rubles
10/10/2012
 
Citibank                                        
 
RUB323,978
    $ 10,082     $ 282  
                             
Sales:
                           
Brazilian reais
10/5/2012
 
Citibank                                        
  $ 11,775    
BRL24,000
      (50 )
Brazilian reais
10/29/2012
 
JPMorgan Chase                                          
  $ 19,670    
BRL40,000
      27  
Euros
10/11/2012
 
Citibank                                        
  $ 11,459     € 9,000       (55 )
Euros
10/22/2012
 
HSBC Bank                                                        
  $ 2,608     € 2,000       37  
Euros
10/24/2012
 
JPMorgan Chase                                          
  $ 41,102     € 31,750       291  
Euros
10/29/2012
 
Bank of New York Mellon 
  $ 1,295     € 1,000       10  
                            260  
                               
Forward currency contracts - net
                      $ 542  
 
 
Investments in affiliates
           
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the year ended September 30, 2012, appear below.
 
   
Beginning shares or principal amount
   
Additions
   
Reductions
   
Ending shares or principal amount
   
Dividend   or interest income (000)
   
Value of affiliates at 9/30/2012 (000)
 
Nortek Inc. 10.00% 2018
  $ 50,485,000     $ 53,485,000     $ 56,235,000     $ 47,735,000     $ 4,819     $ 52,986  
Nortek Inc. 8.50% 2021
  $ 51,015,000     $ 67,785,000     $ 71,140,000     $ 47,660,000       4,146       50,996  
Nortek, Inc. (9)
    793,646       -       -       793,646       -       43,436  
Cooper-Standard Holdings Inc. (9)
    1,224,685       1,252,391       1,238,538       1,238,538       -       46,445  
Cooper-Standard Holdings Inc. 7.00% convertible preferred  (1) (10)
    99,687       -       -       99,687       698       16,491  
Cooper-Standard Holdings Inc., warrants, expire 2017 (9)
    195,965       197,905       196,935       196,935       -       2,551  
American Media, Inc. (1) (9) (10)
    1,122,345       -       -       1,122,345       -       11,380  
Georgia Gulf Corp. (11)
    2,198,408       1,222,333       1,897,333       1,523,408       260       -  
Georgia Gulf Corp. 10.75% 2016 (11)
  $ 5,388,000       -     $ 5,388,000       -       33       -  
Georgia Gulf Corp. 9.00% 2017 (1) (11)
  $ 92,490,000       -     $ 10,605,000     $ 81,885,000       8,155       -  
                                    $ 18,111     $ 224,285  
 
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
 
(1) Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $6,411,646,000, which represented 32.37% of the net assets of the fund.
(2) Coupon rate may change periodically.
(3) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
(4) Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in "Other securities," was $1,950,200,000, which represented 9.85% of the net assets of the fund.
(5) Scheduled interest and/or principal payment was not received.
(6) Payment in kind; the issuer has the option of paying additional securities in lieu of cash.
(7) Represents an affiliated company as defined under the Investment Company Act of 1940.
(8) Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired on 7/17/2009 at a cost of $72,739,000) may be subject to legal or contractual restrictions on resale. The total value of all such securities, including those in "Other securities," was $94,253,000, which represented .48% of the net assets of the fund. These securities were acquired from 6/26/2008 to 7/17/2009 at an aggregate cost of $84,652,000.
(9) Security did not produce income during the last 12 months.
(10) Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in "Other securities," was $121,146,000, which represented .61% of the net assets of the fund.
(11) Unaffiliated issuer at 9/30/2012.
 
Key to abbreviations and symbol
BRL = Brazilian reais
€ = Euros
RUB = Russian rubles
 
 
See Notes to Financial Statements
 
 
Financial statements
 
Statement of assets and liabilities
           
at September 30, 2012
       
(dollars in thousands)
 
             
Assets:
           
 Investment securities, at value:
           
  Unaffiliated issuers (cost: $19,163,367)
  $ 19,696,458        
  Affiliated issuers (cost: $194,803)
    224,285     $ 19,920,743  
 Cash
            41,946  
 Unrealized appreciation on open forward currency contracts
            647  
 Receivables for:
               
  Sales of investments
  $ 106,025          
  Sales of fund's shares
    53,754          
  Dividends and interest
    382,105       541,884  
              20,505,220  
Liabilities:
               
 Unrealized depreciation on open forward currency contracts
            105  
 Payables for:
               
  Purchases of investments
    618,763          
  Repurchases of fund's shares
    56,184          
  Dividends on fund's shares
    9,152          
  Closed forward currency contracts
    59          
  Investment advisory services
    4,660          
  Services provided by related parties
    7,264          
  Trustees' deferred compensation
    207          
  Other
    156       696,445  
Net assets at September 30, 2012
          $ 19,808,670  
                 
Net assets consist of:
               
 Capital paid in on shares of beneficial interest
          $ 20,135,818  
 Distributions in excess of net investment income
            (36,445 )
 Accumulated net realized loss
            (853,953 )
 Net unrealized appreciation
            563,250  
Net assets at September 30, 2012
          $ 19,808,670  
 
 
 
(dollars and shares in thousands, except per-share amounts)
 
                   
Shares of beneficial interest issued and outstanding (no stated par value) -
             
unlimited shares authorized (1,771,474 total shares outstanding)
                 
   
Net assets
   
Shares
outstanding
   
Net asset
value per share
 
Class A
  $ 13,822,395       1,236,126     $ 11.18  
Class B
    204,268       18,267       11.18  
Class C
    1,417,963       126,807       11.18  
Class F-1
    1,584,333       141,686       11.18  
Class F-2
    902,465       80,707       11.18  
Class 529-A
    341,069       30,502       11.18  
Class 529-B
    13,295       1,189       11.18  
Class 529-C
    128,076       11,454       11.18  
Class 529-E
    18,871       1,688       11.18  
Class 529-F-1
    19,584       1,751       11.18  
Class R-1
    24,795       2,217       11.18  
Class R-2
    231,514       20,704       11.18  
Class R-3
    351,583       31,442       11.18  
Class R-4
    231,805       20,730       11.18  
Class R-5
    290,267       25,958       11.18  
Class R-6
    226,387       20,246       11.18  
                         
                         
See Notes to Financial Statements
                       
 
 
Statement of operations
           
for the year ended September 30, 2012
       
(dollars in thousands)
 
             
Investment income:
           
 Income:
           
  Interest (net of non-U.S. taxes of $61;
           
   also includes $17,153 from affiliates)
  $ 1,400,913        
  Dividends (also includes $958 from affiliates)
    14,187     $ 1,415,100  
                 
 Fees and expenses*:
               
  Investment advisory services
    53,862          
  Distribution services
    55,038          
  Transfer agent services
    22,800          
  Administrative services
    3,509          
  Reports to shareholders
    979          
  Registration statement and prospectus
    509          
  Trustees' compensation
    151          
  Auditing and legal
    134          
  Custodian
    240          
  State and local taxes
    108          
  Other
    594       137,924  
 Net investment income
            1,277,176  
                 
Net realized gain and unrealized appreciation
               
 on investments, forward currency contracts and currency:
               
 Net realized gain (loss) on:
               
  Investments (also includes $16,341 net gain from affiliates)
    142,191          
  Forward currency contracts
    18,035          
  Currency transactions
    (1,071 )     159,155  
 Net unrealized appreciation (depreciation) on:
               
  Investments
    1,233,163          
  Forward currency contracts
    (5,293 )        
  Currency translations
    1,236       1,229,106  
   Net realized gain and unrealized appreciation
               
    on investments, forward currency contracts and currency
            1,388,261  
Net increase in net assets resulting
               
 from operations
          $ 2,665,437  
                 
(*) Additional information related to class-specific fees and expenses is included
               
in the Notes to Financial Statements.
               
                 
See Notes to Financial Statements
               
                 
                 
                 
                 
Statements of changes in net assets
               
           
(dollars in thousands)
 
   
Year ended September 30
 
      2012       2011  
Operations:
               
 Net investment income
  $ 1,277,176     $ 1,310,018  
 Net realized gain on investments, forward currency contracts and currency transactions
    159,155       550,497  
 Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations
    1,229,106       (1,731,856 )
  Net increase in net assets resulting from operations
    2,665,437       128,659  
                 
                 
Dividends paid or accrued to shareholders from net investment income
    (1,345,763 )     (1,350,032 )
                 
Net capital share transactions
    2,512,433       305,028  
                 
Total increase (decrease) in net assets
    3,832,107       (916,345 )
                 
Net assets:
               
 Beginning of year
    15,976,563       16,892,908  
 End of year (including distributions in excess of and undistributed
               
  net investment income: $(36,445) and $34,947, respectively)
  $ 19,808,670     $ 15,976,563  
                 
                 
See Notes to Financial Statements
               
 
 
Notes to financial statements

1.  
Organization

American High-Income Trust (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.

The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:

Share class
Initial sales charge
Contingent deferred sales charge upon redemption
Conversion feature
Classes A and 529-A
Up to 3.75%
None (except 1% for certain redemptions within one year of purchase without an initial sales charge)
None
Classes B and 529-B*
None
Declines from 5% to 0% for redemptions within six years of purchase
Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C
None
1% for redemptions within one year of purchase
Class C converts to Class F-1 after 10 years
Class 529-C
None
1% for redemptions within one year of purchase
None
Class 529-E
None
None
None
Classes F-1, F-2 and 529-F-1
None
None
None
Classes R-1, R-2, R-3, R-4, R-5 and R-6
None
None
None
 
* Class B and 529-B shares of the fund are not available for purchase.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.   Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

2.  
Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows   the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income – Security transactions are recorded by the fund   as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized   on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and   unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders –   Dividends paid to shareholders are declared daily after the determination of the fund’s   net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

3.  
Valuation

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund’s   investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or 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. Prices for each security are taken from the principal exchange or market on which the security trades.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class
Examples of standard inputs
All
Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities
Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies
Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations
Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information
Municipal securities
Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

When the fund’s   investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s   investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.   Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s   investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s   board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure – The fund’s   board of trustees has delegated authority to the fund’s   investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s   board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’s   investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications – The fund’s   investment adviser classifies the fund’s   assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.   The following tables present   the fund’s valuation levels as of September 30, 2012 (dollars in thousands):
 
   
Investment securities
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets:
                       
Bonds ,notes & other debt instruments:
                       
Corporate bonds, notes, & loans
  $ -     $ 16,641,529     $ 39,880     $ 16,681,409  
U.S. Treasury bonds & notes
    -       103,028       -       103,028  
Other
    -       951,674       -       951,674  
Convertible securities
    28,652       107,268       -       135,920  
Preferred securities
    5,736       97,883       -       103,619  
Common stocks
    264,769       1       12,626       277,396  
Warrants
    2,899       2,960       153       6,012  
Short-term securities
    -       1,661,685       -       1,661,685  
Total
  $ 302,056     $ 19,566,028     $ 52,659     $ 19,920,743  
                                 
                                 
                                 
   
Other investments(*)
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets:
                               
Unrealized appreciation on open forward currency contracts
  $ -     $ 647     $ -     $ 647  
Liabilities:
                               
Unrealized depreciation on open forward currency contracts
    -       (105 )     -       (105 )
Total
  $ -     $ 542     $ -     $ 542  
                                 
(*) Forward currency contracts are not included in the investment portfolio.
         

4.  
Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

Investing in lower rated bonds — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, falling interest rates may cause an issuer to redeem, call or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities.

Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social, economic or market developments or instability in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
 
5.  
Certain investment techniques

Loan transactions – The fund has entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.

Unfunded commitments – The fund has participated in transactions that involve unfunded commitments, which may obligate the fund to lend additional sums based upon the terms of the loan agreement. As of September 30, 2012, the fund’s maximum exposure of unfunded loan commitments was $14,859,000, which would represent 0.08% of the net assets of the fund should such commitments become due. Unrealized appreciation of $116,000 is included in other payables in the statement of assets and liabilities and net unrealized appreciation on investments in the statement of operations.
 
Forward currency contracts - The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.

On a daily basis, the fund’s investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency.
Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.

Collateral – To reduce the risk to counterparties of forward currency contracts, the fund has entered into a collateral program with certain counterparties. The program calls for the fund to either receive or pledge collateral based on the net unrealized gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party can not meet its contractual obligations.

6.  
Taxation and distributions
 
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended September 30, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2008 and by state tax authorities and tax authorities outside the U.S. for tax years before 2007.

Non-U.S. taxation – Dividend and interest income are recorded net of non-U.S. taxes paid.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains   for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; cost of investments sold; net capital losses; and income on certain investments.   The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are   recorded by the fund for financial reporting purposes.

During the year ended September 30, 2012, the fund reclassified $2,773,000 from distributions in excess of net investment income to accumulated net realized loss and $32,000 from distributions in excess of net investment income to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after September 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of September 30, 2012, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows:

  (dollars in thousands)    
Undistributed ordinary income
  $ 30,332    
Capital loss carryforward expiring 2018*
    (840,948 )  
Gross unrealized appreciation on investment securities
    1,275,567  
Gross unrealized depreciation on investment securities
    (783,337 )
Net unrealized appreciation on investment securities
    492,230  
Cost of investment securities
    19,428,513  
         
*Reflects the utilization of capital loss carryforward of $157,075,000. The capital loss carryforward will be used to offset any capital gains realized by the fund in future years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.

 
Tax-basis distributions paid or accrued   to shareholders from ordinary income were as follows (dollars in thousands):
 
   
Year ended September 30
 
Share class
 
2012
   
2011
 
Class A
  $ 948,806     $ 948,181  
Class B
    15,866       26,714  
Class C
    89,548       95,927  
Class F-1
    109,529       115,447  
Class F-2
    60,321       46,320  
Class 529-A
    22,659       20,211  
Class 529-B
    991       1,431  
Class 529-C
    7,725       7,106  
Class 529-E
    1,230       1,063  
Class 529-F-1
    1,304       1,045  
Class R-1
    1,527       1,552  
Class R-2
    14,463       15,146  
Class R-3
    23,467       24,160  
Class R-4
    16,653       17,338  
Class R-5
    20,422       19,644  
Class R-6
    11,252       8,747  
Total
  $ 1,345,763     $ 1,350,032  

7.  
Fees and transactions with related parties
 
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.

Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides   for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net assets and decreasing to 0.135% on such assets in excess of $15 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 3.00% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.50% on such income in excess of $50 million. For the year ended September 30, 2012, the investment advisory services fee was $53,862,000, which was equivalent to an annualized rate of 0.299% of average daily   net assets.

Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services – The fund has plans of distribution for all share classes, except Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.   All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30%   is not exceeded. As of September 30, 2012, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

Share class
Currently approved limits
Plan limits
Class A
0.30%
0.30%
Class 529-A
0.30
0.50
Classes B and 529-B
1.00
1.00
Classes C, 529-C and R-1
1.00
1.00
Class R-2
0.75
1.00
Classes 529-E and R-3
0.50
0.75
Classes F-1, 529-F-1 and R-4
0.25
0.50

Transfer agent services –   The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

During the period October 1, 2011, through December 31, 2011, only Class A and B shares were subject to the shareholder services agreement with AFS. During this period, AFS and other third parties were compensated for providing transfer agent services to Class C, F, 529 and R shares through the fees paid by the fund to CRMC under the fund’s administrative services agreement with CRMC as described in the administrative services section below and on the following page; CRMC paid for any transfer agent services expenses in excess of 0.10% of the respective average daily net assets of each of such share classes.

Effective January 1, 2012, the shareholder services agreement with AFS was modified to include Class C, F, 529 and R shares and payment for transfer agent services for such classes under the administrative services agreement terminated. Under this structure, transfer agent services expenses for some classes may exceed 0.10% of average daily net assets, resulting in an increase in expenses paid by some share classes.

For the year   ended September 30, 2012, the total transfer agent services fee paid under these agreements was $22,800,000, of which $21,741,000 was paid by the fund to AFS and $1,059,000 was paid by the fund to CRMC through its administrative services agreement with the fund. Amounts paid to CRMC by the fund were then paid by CRMC to AFS and other third parties.

Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders.

During the period October 1, 2011, through December 31, 2011, the agreement applied only to Class C, F, 529 and R shares. The agreement also required CRMC to arrange for the provision of transfer agent services for such share classes, which paid CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) of their respective average daily net assets. During this period, up to 0.05% of these fees were used to compensate CRMC for performing administrative services; all other amounts paid under this agreement were used to compensate AFS and other third parties for transfer agent services.

Effective January 1, 2012, the administrative services agreement with CRMC was modified to include Class A shares. Under the revised agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets to CRMC for administrative services. Fees for transfer agent services are no longer included as part of the administrative services fee paid by the fund to CRMC.

For the year   ended September 30, 2012, total fees paid to CRMC for performing administrative services were $3,509,000.

529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan.   The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

Class-specific expenses under the agreements described above and on the previous page for the year ended September 30, 2012, were as follows (dollars in thousands):
 
Share class
 
Distribution services
   
Transfer agent services
   
Administrative services
   
529 plan
services
 
Class A
  $ 29,913     $ 16,170     $ 965    
Not applicable
 
Class B
    2,308       294    
Not applicable
   
Not applicable
 
Class C
    13,235       1,688       625    
Not applicable
 
Class F-1
    3,551       1,572       696    
Not applicable
 
Class F-2
 
Not applicable
      765       378    
Not applicable
 
Class 529-A
    646       295       147     $ 303  
Class 529-B
    147       18       7       15  
Class 529-C
    1,152       125       56       115  
Class 529-E
    85       10       8       17  
Class 529-F-1
    -       17       8       17  
Class R-1
    227       29       13    
Not applicable
 
Class R-2
    1,607       927       111    
Not applicable
 
Class R-3
    1,619       522       178    
Not applicable
 
Class R-4
    548       229       114    
Not applicable
 
Class R-5
 
Not applicable
      135       131    
Not applicable
 
Class R-6
 
Not applicable
      4       72    
Not applicable
 
Total class-specific expenses
  $ 55,038     $ 22,800     $ 3,509     $ 467  

Trustees’ deferred compensation – Trustees who are unaffiliated with CRMC   may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $151,000, shown on the accompanying financial statements, includes $131,000 in current fees (either paid in cash or deferred) and a net increase of $20,000 in the value of the deferred amounts.

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

8.  
Capital share transactions 
 
Capital share transactions in the fund were as follows (dollars and shares in thousands):
 
   
Sales (*)
   
Reinvestments of dividends
   
Repurchases (*)
   
Net increase (decrease)
 
Share class
 
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
 
Year ended September 30, 2012
                                           
Class A
  $ 2,950,296       270,595     $ 873,157       79,970     $ (2,148,697 )     (197,821 )   $ 1,674,756       152,744  
Class B
    26,355       2,420       14,390       1,320       (118,497 )     (10,933 )     (77,752 )     (7,193 )
Class C
    364,739       33,439       80,091       7,338       (353,351 )     (32,547 )     91,479       8,230  
Class F-1
    697,962       64,204       108,051       9,897       (589,494 )     (54,444 )     216,519       19,657  
Class F-2
    504,614       46,634       50,181       4,592       (275,623 )     (25,351 )     279,172       25,875  
Class 529-A
    78,742       7,226       22,698       2,078       (43,253 )     (3,972 )     58,187       5,332  
Class 529-B
    2,460       226       987       91       (7,187 )     (662 )     (3,740 )     (345 )
Class 529-C
    30,760       2,822       7,735       708       (19,864 )     (1,824 )     18,631       1,706  
Class 529-E
    4,687       431       1,231       113       (2,982 )     (273 )     2,936       271  
Class 529-F-1
    5,877       539       1,304       119       (3,024 )     (278 )     4,157       380  
Class R-1
    8,138       746       1,514       139       (6,534 )     (599 )     3,118       286  
Class R-2
    74,293       6,812       14,398       1,319       (73,343 )     (6,747 )     15,348       1,384  
Class R-3
    181,751       16,666       23,421       2,146       (141,935 )     (13,062 )     63,237       5,750  
Class R-4
    81,945       7,516       16,629       1,523       (91,436 )     (8,413 )     7,138       626  
Class R-5
    101,958       9,370       20,450       1,872       (74,803 )     (6,875 )     47,605       4,367  
Class R-6
    139,385       12,686       11,239       1,028       (38,982 )     (3,528 )     111,642       10,186  
Total net increase
                                                               
   (decrease)
  $ 5,253,962       482,332     $ 1,247,476       114,253     $ (3,989,005 )     (367,329 )   $ 2,512,433       229,256  
                                                                 
Year ended September 30, 2011
                                                         
Class A
  $ 2,605,724       229,912     $ 844,366       75,016     $ (3,058,911 )     (271,226 )   $ 391,179       33,702  
Class B
    41,092       3,620       23,217       2,059       (236,503 )     (20,828 )     (172,194 )     (15,149 )
Class C
    324,695       28,610       81,992       7,284       (421,827 )     (37,401 )     (15,140 )     (1,507 )
Class F-1
    529,143       46,653       110,292       9,796       (730,942 )     (65,285 )     (91,507 )     (8,836 )
Class F-2
    277,746       24,465       34,006       3,025       (210,334 )     (18,597 )     101,418       8,893  
Class 529-A
    75,124       6,629       20,114       1,788       (43,688 )     (3,871 )     51,550       4,546  
Class 529-B
    2,565       226       1,419       126       (9,838 )     (868 )     (5,854 )     (516 )
Class 529-C
    30,054       2,653       7,072       629       (19,438 )     (1,725 )     17,688       1,557  
Class 529-E
    4,520       401       1,058       94       (1,995 )     (177 )     3,583       318  
Class 529-F-1
    6,417       566       1,037       92       (2,737 )     (244 )     4,717       414  
Class R-1
    6,478       571       1,518       135       (9,006 )     (796 )     (1,010 )     (90 )
Class R-2
    78,238       6,908       14,994       1,332       (87,033 )     (7,692 )     6,199       548  
Class R-3
    119,975       10,572       24,046       2,133       (173,188 )     (15,397 )     (29,167 )     (2,692 )
Class R-4
    91,285       8,062       17,262       1,533       (98,183 )     (8,664 )     10,364       931  
Class R-5
    95,406       8,410       19,487       1,731       (105,669 )     (9,381 )     9,224       760  
Class R-6
    49,975       4,389       8,737       776       (34,734 )     (3,110 )     23,978       2,055  
Total net increase
                                                               
   (decrease)
  $ 4,338,437       382,647     $ 1,210,617       107,549     $ (5,244,026 )     (465,262 )   $ 305,028       24,934  
                                                                 
* Includes exchanges between share classes of the fund.
                                         

9.  
Investment transactions 
 
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $7,798,136,000 and $6,271,971,000, respectively, during the year ended September 30, 2012.

Financial highlights
 
         
Income (loss) from investment operations (1)
   
Dividends and distributions
                                     
   
Net asset value, beginning of period
   
Net investment income
   
Net gains (losses) on securities (both realized and unrealized)
   
Total from investment operations
   
Dividends (from net investment income)
   
Distributions (from capital gains)
   
Total dividends and distributions
   
Net asset value, end of period
   
Total
return (2) (3)
   
Net assets, end of period (in millions)
   
Ratio of expenses to average net assets before reimbursements/
waivers
   
Ratio of expenses to average net assets after reimbursements/
waivers (3)
   
Ratio of net income to average net assets (3)
 
Class A:
                                                                             
Year ended 9/30/2012
  $ 10.36     $ .78     $ .86     $ 1.64     $ (.82 )   $ -     $ (.82 )   $ 11.18       16.35 %   $ 13,822       .69 %     .69 %     7.17 %
Year ended 9/30/2011
    11.13       .85       (.74 )     .11       (.88 )     -       (.88 )     10.36       .67       11,223       .67       .67       7.57  
Year ended 9/30/2010
    10.29       .89       .78       1.67       (.83 )     -       (.83 )     11.13       16.75       11,687       .68       .68       8.26  
Year ended 9/30/2009
    10.01       .83       .33       1.16       (.88 )     -       (.88 )     10.29       14.03       10,274       .80       .79       9.57  
Year ended 9/30/2008
    12.35       .93       (2.32 )     (1.39 )     (.93 )     (.02 )     (.95 )     10.01       (11.87 )     8,074       .70       .67       8.14  
Class B:
                                                                                                       
Year ended 9/30/2012
    10.36       .70       .86       1.56       (.74 )     -       (.74 )     11.18       15.49       204       1.44       1.44       6.47  
Year ended 9/30/2011
    11.13       .77       (.74 )     .03       (.80 )     -       (.80 )     10.36       (.10 )     264       1.44       1.44       6.82  
Year ended 9/30/2010
    10.29       .80       .78       1.58       (.74 )     -       (.74 )     11.13       15.86       452       1.46       1.46       7.50  
Year ended 9/30/2009
    10.01       .76       .33       1.09       (.81 )     -       (.81 )     10.29       13.18       550       1.56       1.55       8.93  
Year ended 9/30/2008
    12.35       .85       (2.32 )     (1.47 )     (.85 )     (.02 )     (.87 )     10.01       (12.55 )     557       1.47       1.44       7.37  
Class C:
                                                                                                       
Year ended 9/30/2012
    10.36       .70       .86       1.56       (.74 )     -       (.74 )     11.18       15.43       1,418       1.48       1.48       6.38  
Year ended 9/30/2011
    11.13       .76       (.74 )     .02       (.79 )     -       (.79 )     10.36       (.15 )     1,229       1.48       1.48       6.76  
Year ended 9/30/2010
    10.29       .80       .78       1.58       (.74 )     -       (.74 )     11.13       15.80       1,337       1.51       1.51       7.44  
Year ended 9/30/2009
    10.01       .76       .33       1.09       (.81 )     -       (.81 )     10.29       13.15       1,213       1.58       1.57       8.74  
Year ended 9/30/2008
    12.35       .84       (2.32 )     (1.48 )     (.84 )     (.02 )     (.86 )     10.01       (12.59 )     890       1.52       1.48       7.32  
Class F-1:
                                                                                                       
Year ended 9/30/2012
    10.36       .78       .86       1.64       (.82 )     -       (.82 )     11.18       16.32       1,584       .71       .71       7.14  
Year ended 9/30/2011
    11.13       .85       (.74 )     .11       (.88 )     -       (.88 )     10.36       .62       1,264       .72       .72       7.52  
Year ended 9/30/2010
    10.29       .88       .78       1.66       (.82 )     -       (.82 )     11.13       16.69       1,457       .74       .74       8.21  
Year ended 9/30/2009
    10.01       .83       .33       1.16       (.88 )     -       (.88 )     10.29       14.02       1,482       .81       .80       9.54  
Year ended 9/30/2008
    12.35       .93       (2.32 )     (1.39 )     (.93 )     (.02 )     (.95 )     10.01       (11.90 )     1,204       .74       .70       8.09  
Class F-2:
                                                                                                       
Year ended 9/30/2012
    10.36       .81       .86       1.67       (.85 )     -       (.85 )     11.18       16.62       903       .46       .46       7.37  
Year ended 9/30/2011
    11.13       .88       (.74 )     .14       (.91 )     -       (.91 )     10.36       .88       568       .46       .46       7.77  
Year ended 9/30/2010
    10.29       .91       .78       1.69       (.85 )     -       (.85 )     11.13       16.98       511       .48       .48       8.44  
Year ended 9/30/2009
    10.01       .81       .37       1.18       (.90 )     -       (.90 )     10.29       14.32       341       .53       .53       8.99  
Period from 8/4/2008 to 9/30/2008 (4)
    11.01       .14       (1.00 )     (.86 )     (.14 )     -       (.14 )     10.01       (7.84 )     13       .08       .07       1.34  
Class 529-A:
                                                                                                       
Year ended 9/30/2012
    10.36       .78       .86       1.64       (.82 )     -       (.82 )     11.18       16.26       341       .77       .77       7.08  
Year ended 9/30/2011
    11.13       .85       (.74 )     .11       (.88 )     -       (.88 )     10.36       .59       261       .74       .74       7.50  
Year ended 9/30/2010
    10.29       .88       .78       1.66       (.82 )     -       (.82 )     11.13       16.66       230       .76       .76       8.18  
Year ended 9/30/2009
    10.01       .82       .33       1.15       (.87 )     -       (.87 )     10.29       13.99       172       .84       .83       9.50  
Year ended 9/30/2008
    12.35       .93       (2.32 )     (1.39 )     (.93 )     (.02 )     (.95 )     10.01       (11.91 )     120       .74       .71       8.11  
Class 529-B:
                                                                                                       
Year ended 9/30/2012
    10.36       .69       .86       1.55       (.73 )     -       (.73 )     11.18       15.34       13       1.57       1.57       6.32  
Year ended 9/30/2011
    11.13       .75       (.74 )     .01       (.78 )     -       (.78 )     10.36       (.22 )     16       1.55       1.55       6.70  
Year ended 9/30/2010
    10.29       .79       .78       1.57       (.73 )     -       (.73 )     11.13       15.74       23       1.56       1.56       7.39  
Year ended 9/30/2009
    10.01       .75       .33       1.08       (.80 )     -       (.80 )     10.29       13.08       22       1.65       1.64       8.76  
Year ended 9/30/2008
    12.35       .84       (2.32 )     (1.48 )     (.84 )     (.02 )     (.86 )     10.01       (12.64 )     18       1.58       1.55       7.26  
Class 529-C:
                                                                                                       
Year ended 9/30/2012
    10.36       .69       .86       1.55       (.73 )     -       (.73 )     11.18       15.35       128       1.56       1.56       6.29  
Year ended 9/30/2011
    11.13       .76       (.74 )     .02       (.79 )     -       (.79 )     10.36       (.21 )     101       1.54       1.54       6.70  
Year ended 9/30/2010
    10.29       .79       .78       1.57       (.73 )     -       (.73 )     11.13       15.75       91       1.56       1.56       7.39  
Year ended 9/30/2009
    10.01       .75       .33       1.08       (.80 )     -       (.80 )     10.29       13.08       68       1.64       1.63       8.71  
Year ended 9/30/2008
    12.35       .84       (2.32 )     (1.48 )     (.84 )     (.02 )     (.86 )     10.01       (12.64 )     49       1.57       1.54       7.27  
Class 529-E:
                                                                                                       
Year ended 9/30/2012
    10.36       .75       .86       1.61       (.79 )     -       (.79 )     11.18       15.97       19       1.02       1.02       6.83  
Year ended 9/30/2011
    11.13       .81       (.74 )     .07       (.84 )     -       (.84 )     10.36       .31       15       1.02       1.02       7.22  
Year ended 9/30/2010
    10.29       .85       .78       1.63       (.79 )     -       (.79 )     11.13       16.34       12       1.04       1.04       7.90  
Year ended 9/30/2009
    10.01       .80       .33       1.13       (.85 )     -       (.85 )     10.29       13.66       9       1.13       1.12       9.23  
Year ended 9/30/2008
    12.35       .90       (2.32 )     (1.42 )     (.90 )     (.02 )     (.92 )     10.01       (12.18 )     7       1.06       1.02       7.79  
                                                                                                         
Class 529-F-1:
                                                                                                       
Year ended 9/30/2012
  $ 10.36     $ .80     $ .86     $ 1.66     $ (.84 )   $ -     $ (.84 )   $ 11.18       16.50 %   $ 20       .56 %     .56 %     7.28 %
Year ended 9/30/2011
    11.13       .87       (.74 )     .13       (.90 )     -       (.90 )     10.36       .80       14       .53       .53       7.70  
Year ended 9/30/2010
    10.29       .90       .78       1.68       (.84 )     -       (.84 )     11.13       16.91       11       .55       .55       8.40  
Year ended 9/30/2009
    10.01       .84       .33       1.17       (.89 )     -       (.89 )     10.29       14.23       7       .63       .62       9.72  
Year ended 9/30/2008
    12.35       .95       (2.32 )     (1.37 )     (.95 )     (.02 )     (.97 )     10.01       (11.74 )     6       .56       .52       8.29  
Class R-1:
                                                                                                       
Year ended 9/30/2012
    10.36       .70       .86       1.56       (.74 )     -       (.74 )     11.18       15.42       25       1.50       1.50       6.36  
Year ended 9/30/2011
    11.13       .76       (.74 )     .02       (.79 )     -       (.79 )     10.36       (.17 )     20       1.50       1.50       6.74  
Year ended 9/30/2010
    10.29       .79       .78       1.57       (.73 )     -       (.73 )     11.13       15.78       23       1.53       1.53       7.41  
Year ended 9/30/2009
    10.01       .75       .33       1.08       (.80 )     -       (.80 )     10.29       13.08       18       1.64       1.63       8.65  
Year ended 9/30/2008
    12.35       .84       (2.32 )     (1.48 )     (.84 )     (.02 )     (.86 )     10.01       (12.62 )     12       1.55       1.52       7.29  
Class R-2:
                                                                                                       
Year ended 9/30/2012
    10.36       .69       .86       1.55       (.73 )     -       (.73 )     11.18       15.38       232       1.54       1.54       6.32  
Year ended 9/30/2011
    11.13       .76       (.74 )     .02       (.79 )     -       (.79 )     10.36       (.15 )     200       1.53       1.48       6.76  
Year ended 9/30/2010
    10.29       .80       .78       1.58       (.74 )     -       (.74 )     11.13       15.80       209       1.58       1.51       7.44  
Year ended 9/30/2009
    10.01       .76       .33       1.09       (.81 )     -       (.81 )     10.29       13.17       170       1.79       1.56       8.81  
Year ended 9/30/2008
    12.35       .84       (2.32 )     (1.48 )     (.84 )     (.02 )     (.86 )     10.01       (12.58 )     128       1.70       1.48       7.34  
Class R-3:
                                                                                                       
Year ended 9/30/2012
    10.36       .75       .86       1.61       (.79 )     -       (.79 )     11.18       15.96       352       1.03       1.03       6.84  
Year ended 9/30/2011
    11.13       .81       (.74 )     .07       (.84 )     -       (.84 )     10.36       .31       266       1.02       1.02       7.22  
Year ended 9/30/2010
    10.29       .85       .78       1.63       (.79 )     -       (.79 )     11.13       16.33       316       1.05       1.05       7.90  
Year ended 9/30/2009
    10.01       .80       .33       1.13       (.85 )     -       (.85 )     10.29       13.66       272       1.13       1.12       9.20  
Year ended 9/30/2008
    12.35       .89       (2.32 )     (1.43 )     (.89 )     (.02 )     (.91 )     10.01       (12.20 )     185       1.07       1.04       7.77  
Class R-4:
                                                                                                       
Year ended 9/30/2012
    10.36       .78       .86       1.64       (.82 )     -       (.82 )     11.18       16.32       232       .72       .72       7.16  
Year ended 9/30/2011
    11.13       .85       (.74 )     .11       (.88 )     -       (.88 )     10.36       .61       208       .72       .72       7.52  
Year ended 9/30/2010
    10.29       .88       .78       1.66       (.82 )     -       (.82 )     11.13       16.68       213       .75       .75       8.19  
Year ended 9/30/2009
    10.01       .83       .33       1.16       (.88 )     -       (.88 )     10.29       14.02       172       .81       .80       9.56  
Year ended 9/30/2008
    12.35       .93       (2.32 )     (1.39 )     (.93 )     (.02 )     (.95 )     10.01       (11.93 )     125       .77       .73       8.08  
Class R-5:
                                                                                                       
Year ended 9/30/2012
    10.36       .81       .86       1.67       (.85 )     -       (.85 )     11.18       16.67       290       .41       .41       7.44  
Year ended 9/30/2011
    11.13       .88       (.74 )     .14       (.91 )     -       (.91 )     10.36       .91       224       .42       .42       7.82  
Year ended 9/30/2010
    10.29       .91       .78       1.69       (.85 )     -       (.85 )     11.13       17.03       232       .44       .44       8.50  
Year ended 9/30/2009
    10.01       .85       .33       1.18       (.90 )     -       (.90 )     10.29       14.37       202       .51       .50       9.88  
Year ended 9/30/2008
    12.35       .96       (2.32 )     (1.36 )     (.96 )     (.02 )     (.98 )     10.01       (11.65 )     140       .45       .42       8.40  
Class R-6:
                                                                                                       
Year ended 9/30/2012
    10.36       .82       .86       1.68       (.86 )     -       (.86 )     11.18       16.72       226       .36       .36       7.44  
Year ended 9/30/2011
    11.13       .89       (.74 )     .15       (.92 )     -       (.92 )     10.36       .96       104       .37       .37       7.86  
Year ended 9/30/2010
    10.29       .92       .78       1.70       (.86 )     -       (.86 )     11.13       17.09       89       .39       .39       8.56  
Period from 5/1/2009 to 9/30/2009 (4)
    8.47       .33       1.83       2.16       (.34 )     -       (.34 )     10.29       25.96       49       .18       .18       3.55  
 
 
   
Year ended September 30
 
   
2012
   
2011
   
2010
   
2009
   
2008
 
Portfolio turnover rate for all share classes
    38 %     51 %     47 %     43 %     35 %
 
 
(1) Based on average shares outstanding.
                         
(2) Total returns exclude any applicable sales charges, including contingent deferred sales charges.
             
(3) This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.
(4) Based on operations for the period shown and, accordingly, is not representative of a full year.
                 
                           
                           
See Notes to Financial Statements
                       
 
 
 
Report of Independent Registered Public Accounting Firm
 
To the Shareholders and Board of Trustees of American High-Income Trust:

We have audited the accompanying statement of assets and liabilities of American High-Income Trust (the “Fund”), including the summary investment portfolio, as of September 30, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s   management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s   internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2012, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of American High-Income Trust as of September 30, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.


Deloitte & Touche LLP

Costa Mesa, California
November 12, 2012


 
Expense example                                                                                                                                                 
     unaudited
 
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (April 1, 2012, through September 30, 2012).
 
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
 
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
 
Notes:
There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
 
Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

   
Beginning account value 4/1/2012
   
Ending account value 9/30/2012
   
Expenses paid during period*
   
Annualized
expense ratio
 
                         
Class A -- actual return
  $ 1,000.00     $ 1,046.52     $ 3.48       .68 %
Class A -- assumed 5% return
    1,000.00       1,021.60       3.44       .68  
Class B -- actual return
    1,000.00       1,042.64       7.30       1.43  
Class B -- assumed 5% return
    1,000.00       1,017.85       7.21       1.43  
Class C -- actual return
    1,000.00       1,042.36       7.56       1.48  
Class C -- assumed 5% return
    1,000.00       1,017.60       7.47       1.48  
Class F-1 -- actual return
    1,000.00       1,046.37       3.63       .71  
Class F-1 -- assumed 5% return
    1,000.00       1,021.45       3.59       .71  
Class F-2 -- actual return
    1,000.00       1,047.66       2.35       .46  
Class F-2 -- assumed 5% return
    1,000.00       1,022.70       2.33       .46  
Class 529-A -- actual return
    1,000.00       1,046.05       3.94       .77  
Class 529-A -- assumed 5% return
    1,000.00       1,021.15       3.89       .77  
Class 529-B -- actual return
    1,000.00       1,041.92       7.96       1.56  
Class 529-B -- assumed 5% return
    1,000.00       1,017.20       7.87       1.56  
Class 529-C -- actual return
    1,000.00       1,041.95       7.96       1.56  
Class 529-C -- assumed 5% return
    1,000.00       1,017.20       7.87       1.56  
Class 529-E -- actual return
    1,000.00       1,044.80       5.16       1.01  
Class 529-E -- assumed 5% return
    1,000.00       1,019.95       5.10       1.01  
Class 529-F-1 -- actual return
    1,000.00       1,047.16       2.81       .55  
Class 529-F-1 -- assumed 5% return
    1,000.00       1,022.25       2.78       .55  
Class R-1 -- actual return
    1,000.00       1,042.34       7.56       1.48  
Class R-1 -- assumed 5% return
    1,000.00       1,017.60       7.47       1.48  
Class R-2 -- actual return
    1,000.00       1,041.90       8.01       1.57  
Class R-2 -- assumed 5% return
    1,000.00       1,017.15       7.92       1.57  
Class R-3 -- actual return
    1,000.00       1,044.74       5.21       1.02  
Class R-3 -- assumed 5% return
    1,000.00       1,019.90       5.15       1.02  
Class R-4 -- actual return
    1,000.00       1,046.36       3.63       .71  
Class R-4 -- assumed 5% return
    1,000.00       1,021.45       3.59       .71  
Class R-5 -- actual return
    1,000.00       1,047.91       2.10       .41  
Class R-5 -- assumed 5% return
    1,000.00       1,022.95       2.07       .41  
Class R-6 -- actual return
    1,000.00       1,048.20       1.84       .36  
Class R-6 -- assumed 5% return
    1,000.00       1,023.20       1.82       .36  
                                 
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 366 (to reflect the one-half year period).
 
 

Tax information                                                                                                                   
    unaudited

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts   for the fund’s fiscal year ended September 30, 2012:

Qualified dividend income
  $ 23,008,000  
Corporate dividends received deduction
  $ 17,588,000  
U.S. government income that may be exempt from state taxation
  $ 1,175,000  

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2013, to determine the calendar year amounts to be included on their 2012 tax returns. Shareholders should consult their tax advisers .
 
 
Other share class results
unaudited
 
Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended
             
10 years/
 
September 30, 2012:
 
1 year
   
5 years
   
Life of class 1
 
                   
Class B shares 2
                 
Reflecting applicable contingent deferred sales charge
                 
(CDSC), maximum of 5%, payable only if shares
                 
are sold within six years of purchase
    10.49 %     5.47 %     9.21 %
Not reflecting CDSC
    15.49       5.76       9.21  
                         
Class C shares
                       
Reflecting CDSC, maximum of 1%, payable only
                       
if shares are sold within one year of purchase
    14.43       5.72       8.99  
Not reflecting CDSC
    15.43       5.72       8.99  
                         
Class F-1 shares 3
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    16.32       6.53       9.83  
                         
Class F-2 shares 3 — first sold 8/4/08
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    16.62       —       9.35  
                         
Class 529-A shares 4
                       
Reflecting 3.75% maximum sales charge
    11.94       5.69       9.39  
Not reflecting maximum sales charge
    16.26       6.50       9.80  
                         
Class 529-B shares 2,4
                       
Reflecting applicable CDSC, maximum of 5%, payable
                       
only if shares are sold within six years of purchase
    10.34       5.35       9.07  
Not reflecting CDSC
    15.34       5.65       9.07  
                         
Class 529-C shares 4
                       
Reflecting CDSC, maximum of 1%, payable only
                       
if shares are sold within one year of purchase
    14.35       5.65       8.91  
Not reflecting CDSC
    15.35       5.65       8.91  
                         
Class 529-E shares 3,4
    15.97       6.21       9.47  
                         
Class 529-F-1 shares 3,4
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    16.50       6.72       9.94  


 
1 Applicable to Class F-2 shares only. All other share classes reflect 10-year results.
 
2 These shares are not available for purchase.
 
3 These shares are sold without any initial or contingent deferred sales charge.
 
4 Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

For information regarding the differences among the various share classes, refer to the fund prospectus.


Board of trustees and other officers
 
“Independent” trustees 1
   
 
Year first
 
 
elected a
 
 
trustee of
 
Name and age
the fund 2
Principal occupation(s) during past five years
     
William H. Baribault, 67
2010
Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)
     
James G. Ellis, 65
2006
Dean and Professor of Marketing, Marshall School of
   
Business, University of Southern California
     
Leonard R. Fuller, 66
1994
President and CEO, Fuller Consulting (financial
   
management consulting firm)
     
W. Scott Hedrick, 67
2010
Founding General Partner, InterWest Partners
   
(venture capital firm)
     
R. Clark Hooper, 66
2005
Private investor
Chairman of the Board
   
(Independent and Non-Executive)
   
     
Merit E. Janow, 54
2010
Professor, Columbia University, School of
   
International and Public Affairs; former Member,
   
World Trade Organization Appellate Body
     
Laurel B. Mitchell, Ph.D., 57
2010
Clinical Professor and Director, Accounting Program,
   
University of Redlands
     
Frank M. Sanchez, 69
1999
Principal, The Sanchez Family Corporation dba
   
McDonald’s Restaurants (McDonald’s licensee)
     
Margaret Spellings, 55
2010
President and CEO, Margaret Spellings & Company
   
(public policy and strategic consulting); President,
   
U.S. Forum for Policy Innovation and Senior Advisor
   
to the President and
 CEO, U.S. Chamber of
   
   
Commerce; former United States Secretary of
   
Education, United States Department of Education
     
Steadman Upham, Ph.D., 63
2007
President and University Professor,
   
The University of Tulsa
     
     
“Independent” trustees 1
   
 
Number of
 
 
portfolios
 
 
in fund
 
 
complex 3
 
 
overseen by
 
Name and age
trustee
Other directorships 4 held by trustee
     
William H. Baribault, 67
58
None
     
James G. Ellis, 65
62
Quiksilver, Inc.
     
Leonard R. Fuller, 66
62
None
     
W. Scott Hedrick, 67
58
Hot Topic, Inc.; Office Depot, Inc.
     
R. Clark Hooper, 66
64
JPMorgan Value Opportunities Fund, Inc.;
Chairman of the Board
 
The Swiss Helvetia Fund, Inc.
(Independent and Non-Executive)
   
     
Merit E. Janow, 54
61
The NASDAQ Stock Market LLC;
   
Trimble Navigation Limited
     
Laurel B. Mitchell, Ph.D., 57
58
None
     
Frank M. Sanchez, 69
58
None
     
Margaret Spellings, 55
61
None
     
Steadman Upham, Ph.D., 63
61
None

Lee A. Ault III, a trustee of the fund since 2010, and Martin Fenton, a trustee of the fund since 1989, have retired from the board. The trustees thank Mr. Ault and Mr. Fenton for their dedication and service to the fund.


“Interested” trustee 5,6
   
 
Year first
 
 
elected a
 
 
trustee or
Principal occupation(s) during past five years
Name, age and
officer of
and positions held with affiliated entities or the
position with fund
the fund 2
principal underwriter of the fund
     
John H. Smet, 56
2011
Senior Vice President — Fixed Income, Capital
   
Research and Management Company; Director,
   
The Capital Group Companies, Inc. 7
     
     
“Interested” trustee 5,6
   
 
Number of
 
 
portfolios in
 
 
fund complex 3
 
Name, age and
overseen
 
position with fund
by trustee
Other directorships 4 held by trustee
     
John H. Smet, 56
17
None


The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at 800/421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

See footnotes on page 32.


Other officers 6
   
 
Year first
 
 
elected
Principal occupation(s) during past five years
Name, age and
an officer
and positions held with affiliated entities or the
position with fund
of the fund 2
principal underwriter of the fund
     
David C. Barclay, 56
1995
Senior Vice President — Fixed Income, Capital
President
 
Research and Management Company; Director,
   
Capital Research and Management Company
     
David A. Daigle, 45
2008
Senior Vice President — Fixed Income, Capital
Senior Vice President
 
Research Company 7
     
Jennifer L. Hinman, 54
2001
Senior Vice President — Fixed Income, Capital
Senior Vice President
 
Research Company; 7 Director, Capital International
   
Research, Inc.; 7 Director, Capital Strategy Research,
   
Inc. 7
     
Kristine M. Nishiyama, 42
2003
Senior Vice President and Senior Counsel — Fund
Senior Vice President
 
Business Management Group, Capital Research and
   
Management Company; Vice President and Senior
   
Counsel, Capital Bank and Trust Company 7
     
Richard N. Lewis, 39
2011
Senior Vice President — Fixed Income, Capital
Vice President
 
Research Company 7
     
Marcus B. Linden, 46
2008
Senior Vice President — Fixed Income, Capital
Vice President
 
Research Company 7
     
Courtney R. Taylor, 37
2006
Assistant Vice President — Fund Business
Secretary
 
Management Group, Capital Research and
   
Management Company
     
Karl C. Grauman, 44
2011
Vice President — Fund Business Management
Treasurer
 
Group, Capital Research and Management Company
     
Steven I. Koszalka, 48
2010
Vice President — Fund Business Management
Assistant Secretary
 
Group, Capital Research and Management Company
     
Brian C. Janssen, 40
2012
Vice President — Fund Business Management
Assistant Treasurer
 
Group, Capital Research and Management Company
     
Dori Laskin, 61
2010
Vice President — Fund Business Management
Assistant Treasurer
 
Group, Capital Research and Management Company

 
1 The term “independent” trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940.
 
2 Trustees and officers of the fund serve until their resignation, removal or retirement.
 
3 Capital Research and Management Company manages the American Funds. Capital Research and Management Company also manages American Funds Insurance Series, ® which is composed of 19 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series, ® which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; American Funds Portfolio Series, SM which is composed of eight funds; and American Funds College Target Date Series, SM which is composed of seven funds.
 
4 This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a trustee or director of a public company or a registered investment company.
 
5 “Interested persons” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter).
 
6 All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
 
7 Company affiliated with Capital Research and Management Company.


Offices of the fund and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

6455 Irvine Center Drive
Irvine, CA 92618

Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)

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

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

Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Counsel
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106

Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete September 30, 2012, portfolio of American High-Income Trust’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

American High-Income Trust files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available on the American Funds website or by calling AFS.

This report is for the information of shareholders of American High-Income Trust, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 
 
 
 

The American Funds difference

Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.

Consistent approach

We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach. 1

Proven system

Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods. 2 Our fund management fees have been among the lowest in the industry. 3

 
1 As of 12/31/11.
 
2 Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.
 
3 Based on management fees for the 20-year period ended 12/31/11 versus comparable Lipper categories, excluding funds of funds.


American Funds span a range of investment object ives

•
Growth funds
 
AMCAP Fund ®
 
EuroPacific Growth Fund ®
 
The Growth Fund of America ®
 
The New Economy Fund ®
 
New Perspective Fund ®
 
New World Fund ®
 
SMALLCAP World Fund ®

•
Growth-and-income funds
 
American Mutual Fund ®
 
Capital World Growth and Income Fund ®
 
Fundamental Investors SM
 
International Growth and Income Fund SM
 
The Investment Company of America ®
 
Washington Mutual Investors Fund SM

•
Equity-income funds
 
Capital Income Builder ®
 
The Income Fund of America ®

•
Balanced funds
 
American Balanced Fund ®
 
American Funds Global Balanced Fund SM

•
Bond funds
 
American Funds Mortgage Fund ®
 
American High-Income Trust ®
 
The Bond Fund of America ®
 
Capital World Bond Fund ®
 
Intermediate Bond Fund of America ®
 
Short-Term Bond Fund of America ®
 
U.S. Government Securities Fund ®

•
Tax-exempt bond funds
 
American Funds Short-Term Tax-Exempt Bond Fund ®
 
American High-Income Municipal Bond Fund ®
 
Limited Term Tax-Exempt Bond Fund of America ®
 
The Tax-Exempt Bond Fund of America ®
 
State-specific tax-exempt funds
 
American Funds Tax-Exempt Fund of New York ®
 
The Tax-Exempt Fund of California ®
 
The Tax-Exempt Fund of Maryland ®
 
The Tax-Exempt Fund of Virginia ®

•
Money market fund
 
American Funds Money Market Fund ®

•
American Funds Portfolio Series SM
 
American Funds Global Growth Portfolio SM
 
American Funds Growth Portfolio SM
 
American Funds Growth and Income Portfolio SM
 
American Funds Balanced Portfolio SM
 
American Funds Income Portfolio SM
 
American Funds Tax-Advantaged Income Portfolio SM
 
American Funds Preservation Portfolio SM
 
American Funds Tax-Exempt Preservation Portfolio SM

•
American Funds Target Date Retirement Series ®

•
American Funds College Target Date Series SM



The Capital Group Companies

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



Lit. No. MFGEARX-021-1112P
 
Litho in USA RCG/RRD/8049-S33534
 
Printed on paper containing 10% post-consumer waste
 
Printed with inks containing soy and/or vegetable oil
 
 
ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer.  The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics.  Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.


ITEM 3 – Audit Committee Financial Expert

The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members.  There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such.  Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.


ITEM 4 – Principal Accountant Fees and Services

 
Registrant:
   
a)  Audit Fees:
     
2011
$109,000
     
2012
$112,000
     
 
   
b)  Audit-Related Fees:
     
2011
$ 5,000
     
2012
$ 6,000
     
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.
       
   
c)  Tax Fees:
     
2011
$ 7,000
     
2012
$ 7,000
     
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns including returns relating to the Registrant’s investments in non-U.S. jurisdictions.
       
   
d)  All Other Fees:
     
2011
None
     
2012
None
       
 
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
   
a)  Audit Fees:
     
Not Applicable
       
   
b)  Audit-Related Fees:
     
2011
$ 1,055,000
     
2012
$ 1,028,000
     
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.
       
   
c)  Tax Fees:
     
2011
$ 38,000
     
2012
$ 18,000
     
The tax fees consist of consulting services relating to the Registrant’s investments.
       
   
d)  All Other Fees:
     
2011
$ 2,000
     
2012
$ 2,000
     
The other fees consist of subscription services related to an accounting research tool.

All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee.  The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services.  Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,651,000 for fiscal year 2011 and $1,582,000 for fiscal year 2012. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.
 
 
ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
 
 
ITEM 6 – Schedule of Investments
 
 

 
American High-Income Trust ®
Investment portfolio
 
September 30, 2012
 
Bonds, notes & other debt instruments — 89.54%
 
Principal amount
(000)
   
Value
(000)
 
             
CORPORATE BONDS, NOTES & LOANS — 84.22%
           
CONSUMER DISCRETIONARY — 17.72%
           
MGM Resorts International 6.75% 2013
  $ 45,790     $ 46,992  
MGM Resorts International 13.00% 2013
    26,725       30,266  
MGM Resorts International 5.875% 2014
    70,090       73,244  
MGM Resorts International 10.375% 2014
    9,525       10,763  
MGM Resorts International 6.625% 2015
    22,975       24,698  
MGM Resorts International 6.875% 2016
    12,000       12,600  
MGM Resorts International 7.50% 2016
    36,400       39,130  
MGM Resorts International 11.125% 2017
    13,800       15,335  
MGM Resorts International 6.75% 2020 1
    33,125       33,208  
MGM Resorts International 9.00% 2020
    12,225       13,707  
MGM Resorts International 7.75% 2022
    23,200       24,360  
Charter Communications, Inc. 13.50% 2016
    46,320       50,373  
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 7.25% 2017
    70,900       77,636  
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 7.875% 2018
    40,425       43,962  
CCO Holdings LLC and CCO Holdings Capital Corp. 7.00% 2019
    10,000       10,875  
CCO Holdings LLC and CCO Holdings Capital Corp. 7.375% 2020
    23,000       25,789  
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.125% 2020
    28,175       31,979  
EchoStar DBS Corp 7.75% 2015
    5,000       5,650  
EchoStar DBS Corp 7.125% 2016
    7,000       7,770  
DISH DBS Corp. 4.625% 2017 1
    95,950       98,589  
DISH DBS Corp 7.875% 2019
    3,550       4,145  
DISH DBS Corp 6.75% 2021
    48,490       53,097  
DISH DBS Corp. 5.875% 2022 1
    44,200       45,526  
Boyd Gaming Corp. 6.75% 2014
    31,675       31,833  
Boyd Gaming Corp. 7.125% 2016
    34,465       34,293  
Boyd Gaming Corp. 9.125% 2018
    82,070       86,584  
Boyd Gaming Corp. 9.00% 2020 1
    50,950       52,224  
Virgin Media Finance PLC, Series 1, 9.50% 2016
    88,775       98,762  
Virgin Media Secured Finance PLC 6.50% 2018
    9,325       10,258  
Virgin Media Finance PLC 8.375% 2019 1
    57,435       65,619  
Univision Communications Inc., Term Loan B, 4.466% 2017 2,3,4
    122,468       121,243  
Univision Communications Inc. 8.50% 2021 1
    31,790       32,426  
Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015
    67,753       68,993  
Mediacom LLC and Mediacom Capital Corp. 9.125% 2019
    26,450       29,360  
Mediacom LLC and Mediacom Capital Corp. 7.25% 2022
    19,300       20,796  
Mediacom Broadband LLC and Mediacom Broadband Corp. 6.375% 2023 1
    10,475       10,527  
Revel Entertainment, Term Loan, 8.50% 2014 2,3,4
    8,656       8,496  
Revel Entertainment, Term Loan B, 9.00% 2017 2,3,4
    117,150       93,093  
Revel Entertainment, Term Loan B, 9.00% 2017 2,3,4
    7,260       5,769  
Revel Entertainment 12.00% 2018 1,2,5
    40,649       18,182  
Needle Merger Sub Corp. 8.125% 2019 1
    121,855       124,901  
Limited Brands, Inc. 5.25% 2014
    703       747  
Limited Brands, Inc. 8.50% 2019
    9,934       12,020  
Limited Brands, Inc. 7.00% 2020
    17,513       19,965  
Limited Brands, Inc. 6.625% 2021
    58,180       66,325  
Limited Brands, Inc. 5.625% 2022
    22,500       24,356  
Michaels Stores, Inc., Term Loan B3, 5.00% 2016 2,3,4
    17,346       17,531  
Michaels Stores, Inc., Term Loan B2, 5.00% 2016 2,3,4
    5,877       5,940  
Michaels Stores, Inc. 11.375% 2016
    11,000       11,551  
Michaels Stores, Inc. 13.00% 2016
    22,678       23,869  
Michaels Stores, Inc. 7.75% 2018
    50,750       54,683  
Clear Channel Worldwide Holdings, Inc., Series B, 9.25% 2017
    82,450       89,252  
Clear Channel Worldwide Holdings, Inc. 7.625% 2020
    22,750       22,295  
Neiman Marcus Group, Inc. 10.375% 2015
    25,700       26,278  
Neiman Marcus Group, Inc., Term Loan B, 4.75% 2018 2,3,4
    77,945       78,503  
CityCenter Holdings, LLC and CityCenter Finance Corp. 7.625% 2016
    36,500       39,146  
CityCenter Holdings, LLC and CityCenter Finance Corp. 7.625% 2016 1
    20,000       21,450  
CityCenter Holdings, LLC and CityCenter Finance Corp. 11.50% 2017 5
    37,745       40,482  
Warner Music Group 9.50% 2016
    16,261       17,826  
Warner Music Group 9.50% 2016
    11,855       12,996  
Warner Music Group 11.50% 2018
    43,650       49,325  
Warner Music Group 13.75% 2019
    16,975       18,757  
J.C. Penney Co., Inc. 5.75% 2018
    52,531       50,167  
J.C. Penney Co., Inc. 5.65% 2020
    32,096       29,127  
Toys “R” Us-Delaware, Inc., Term Loan B, 6.00% 2016 2,3,4
    3,087       3,085  
Toys “R” Us-Delaware, Inc. 7.375% 2016 1
    19,080       19,509  
Toys “R” Us Property Co. II, LLC 8.50% 2017
    27,475       29,742  
Toys “R” Us Property Co. I, LLC 10.75% 2017
    1,725       1,889  
Toys “R” Us-Delaware, Inc., Term Loan B2, 5.25% 2018 2,3,4
    14,738       14,514  
Toys “R” Us, Inc. 7.375% 2018
    6,700       6,047  
Burger King Corp 0%/11.00% 2019 1,6
    76,125       63,374  
PETCO Animal Supplies, Inc. 9.25% 2018 1
    53,750       59,931  
Academy, Ltd., Term Loan B, 6.00% 2018 2,3,4
    35,132       35,320  
Academy, Ltd. 9.25% 2019 1
    21,050       23,234  
Burlington Coat Factory Warehouse Corp., Term Loan B1, 5.50% 2017 2,3,4
    35,280       35,726  
Burlington Coat Factory Warehouse Corp. 10.00% 2019
    15,250       16,947  
NCL Corp. Ltd. 11.75% 2016
    18,925       21,906  
NCL Corp. Ltd. 9.50% 2018
    20,875       23,223  
Jaguar Land Rover PLC 7.75% 2018 1
    18,960       20,548  
Jaguar Land Rover PLC 8.125% 2021 1
    18,725       20,480  
Cinemark USA, Inc. 8.625% 2019
    36,250       40,419  
Tousa, Inc. 9.00% 2010 7,8
    22,486       13,559  
Tousa, Inc. 9.00% 2010 7,8
    7,325       4,417  
Tousa, Inc. 9.25% 2011 1,2,7,8
    36,325       21,904  
Royal Caribbean Cruises Ltd. 6.875% 2013
    4,000       4,230  
Royal Caribbean Cruises Ltd. 11.875% 2015
    27,725       34,240  
Bon-Ton Department Stores Inc. 10.625% 2017 1
    41,230       37,416  
DineEquity, Inc. 9.50% 2018
    29,275       33,154  
Local T.V. Finance LLC, Term Loan B, 2.22% 2013 2,3,4
    110       110  
Local T.V. Finance LLC 9.25% 2015 1,2,5
    31,914       32,712  
Sally Holdings LLC and Sally Capital Inc. 6.875% 2019
    21,625       24,166  
Sally Holdings LLC and Sally Capital Inc. 5.75% 2022
    7,250       7,757  
Marina District Finance Co., Inc. 9.50% 2015
    10,000       10,138  
Marina District Finance Co., Inc. 9.875% 2018
    21,000       21,158  
Mohegan Tribal Gaming Authority 10.50% 2016 1
    19,175       17,641  
Mohegan Tribal Gaming Authority 11.00% 2018 1,2,5
    17,875       12,691  
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012 7
    37,251       29,987  
Tower Automotive Holdings 10.625% 2017 1
    23,925       25,899  
UPC Germany GmbH 7.50% 2019
  € 7,250       10,202  
UPC Germany GmbH 9.625% 2019
    10,800       15,484  
Jarden Corp. 8.00% 2016
  $ 23,250       24,936  
Cablevision Systems Corp. 7.75% 2018
    3,000       3,337  
CSC Holdings, Inc. 8.625% 2019
    900       1,069  
Cablevision Systems Corp. 5.875% 2022
    19,900       19,900  
Fox Acquisition LLC 13.375% 2016 1
    5,000       5,344  
Fox Acquisition LLC, Term-Loan B, 5.50% 2017 2,3,4
    16,075       16,221  
Cumulus Media Holdings Inc. 7.75% 2019
    22,000       21,505  
Seneca Gaming Corp. 8.25% 2018 1
    17,650       18,621  
Videotron Ltd. 6.375% 2015
    3,720       3,794  
Quebecor Media Inc. 7.75% 2016
    3,725       3,846  
Videotron Ltd. 5.00% 2022
    9,200       9,660  
Lamar Media Corp. 7.875% 2018
    13,525       15,013  
Lamar Media Corp. 5.875% 2022
    1,500       1,605  
Carmike Cinemas, Inc. 7.375% 2019
    14,000       15,120  
Nara Cable Funding Ltd. 8.875% 2018 1
    16,250       14,909  
National CineMedia, Inc. 6.00% 2022 1
    13,550       14,363  
Allison Transmission Holdings, Inc., Term Loan B, 2.72% 2014 2,3,4
    13,951       13,993  
Education Management LLC and Education Management Finance Corp. 8.75% 2014
    17,420       13,805  
Gray Television, Inc., Series D, 17.00% (undated) 2,7,8,9
    12,573       12,573  
Dynacast International LLC 9.25% 2019
    10,950       11,607  
Chrysler Group LLC, Term Loan B, 6.00% 2017 2,3,4
    10,606       10,844  
Seminole Tribe of Florida 7.804% 2020 1,3
    8,320       8,531  
LBI Media, Inc. 8.50% 2017 1
    32,885       8,386  
Tenneco Inc. 6.875% 2020
    4,300       4,730  
FCE Bank PLC 7.125% 2013
  € 3,550       4,638  
Marks and Spencer Group PLC 7.125% 2037 1
  $ 4,090       4,483  
AMC Entertainment Inc. 8.00% 2014
    4,268       4,273  
Grupo Televisa, SAB 6.625% 2040
    2,500       3,327  
Time Warner Cable Inc. 7.50% 2014
    750       824  
Cox Communications, Inc. 5.45% 2014
    390       429  
              3,510,089  
                 
                 
TELECOMMUNICATION SERVICES — 11.79%
               
Nextel Communications, Inc., Series F, 5.95% 2014
    117,065       117,650  
Nextel Communications, Inc., Series D, 7.375% 2015
    62,258       62,647  
Sprint Nextel Corp. 6.00% 2016
    20,000       20,700  
Sprint Nextel Corp. 8.375% 2017
    83,450       93,255  
Sprint Nextel Corp. 9.125% 2017
    49,000       55,738  
Sprint Nextel Corp. 9.00% 2018 1
    31,150       37,458  
Sprint Capital Corp. 6.90% 2019
    5,000       5,212  
Sprint Nextel Corp. 7.00% 2020
    108,500       113,247  
Sprint Nextel Corp. 11.50% 2021
    39,405       49,503  
Sprint Capital Corp. 8.75% 2032
    4,800       4,992  
Frontier Communications Corp. 8.25% 2017
    125,266       142,803  
Frontier Communications Corp. 8.125% 2018
    17,151       19,381  
Frontier Communications Corp. 8.50% 2020
    72,760       82,583  
Frontier Communications Corp. 9.25% 2021
    55,510       64,530  
Frontier Communications Corp. 8.75% 2022
    26,632       30,360  
Frontier Communications Corp. 7.125% 2023
    100,875       105,288  
Clearwire Communications and Clearwire Finance, Inc., Series B, 12.00% 2015 1
    123,930       123,310  
Clearwire Communications and Clearwire Finance, Inc., Series A, 12.00% 2015 1
    120,730       120,126  
Clearwire Communications and Clearwire Finance, Inc. 14.75% 2016 1
    16,600       18,094  
Clearwire Communications and Clearwire Finance, Inc. 12.00% 2017 1
    86,930       79,976  
Cricket Communications, Inc. 10.00% 2015
    52,570       55,461  
Cricket Communications, Inc. 7.75% 2016
    178,140       188,828  
Cricket Communications, Inc. 7.75% 2020
    29,025       28,445  
Wind Acquisition SA 11.75% 2017 1
    140,330       132,963  
Wind Acquisition SA 7.25% 2018 1
    37,080       35,411  
Wind Acquisition SA 7.375% 2018
  € 21,915       26,191  
Digicel Group Ltd. 12.00% 2014 1
  $ 61,825       70,171  
Digicel Group Ltd. 12.00% 2014
    600       681  
Digicel Group Ltd. 10.50% 2018 1
    10,450       11,469  
Digicel Group Ltd. 8.25% 2020 1
    42,100       44,416  
LightSquared, Term Loan B, 12.00% 2014 3,4,5,7
    144,713       101,842  
Vodafone Group PLC, Term Loan B, 6.875% 2015 3,4,5
    60,050       62,152  
Vodafone Group PLC, Term Loan B, 6.25% 2016 3,4,5,8
    35,229       36,462  
Trilogy International Partners, LLC, 10.25% 2016 1
    90,290       74,038  
Crown Castle International Corp. 9.00% 2015
    29,475       31,833  
Crown Castle International Corp. 7.75% 2017 1
    11,150       11,958  
Crown Castle International Corp. 7.125% 2019
    1,000       1,090  
Level 3 Communications, Inc. 8.125% 2019
    4,900       5,231  
Level 3 Communications, Inc. 11.875% 2019
    15,525       17,698  
SBA Communications Corp. 5.75% 2020 1
    13,325       14,041  
tw telecom holdings inc. 5.375% 2022 1
    13,600       13,923  
América Móvil, SAB de CV 5.00% 2020
    4,350       5,116  
América Móvil, SAB de CV 8.46% 2036
 
MXN65,000
      5,375  
Sable International Finance Ltd. 8.75% 2020 1
  $ 5,200       5,824  
Syniverse Holdings, Inc. 9.125% 2019
    4,600       4,968  
Telefónica Emisiones, SAU 6.421% 2016
    3,025       3,203  
              2,335,643  
                 
                 
FINANCIALS — 10.41%
               
Realogy Corp. 10.50% 2014
    1,000       1,045  
Realogy Corp., Term Loan B, 4.478% 2016 2,3,4
    140,462       139,057  
Realogy Corp., Letter of Credit, 4.491% 2016 2,3,4
    11,765       11,647  
Realogy Corp., Second Lien Term Loan A, 13.50% 2017 3,4
    147,699       149,545  
Realogy Corp. 7.875% 2019 1
    145,435       153,434  
Realogy Corp. 7.625% 2020 1
    3,000       3,322  
Realogy Corp. 9.00% 2020 1
    87,735       97,167  
CIT Group Inc., Series C, 4.75% 2015 1
    135,300       141,727  
CIT Group Inc. 4.25% 2017
    31,500       32,855  
CIT Group Inc. 5.00% 2017
    96,625       103,630  
CIT Group Inc., Series C, 5.50% 2019 1
    30,550       33,223  
International Lease Finance Corp., Series R, 6.375% 2013
    1,000       1,024  
International Lease Finance Corp. 4.875% 2015
    126,930       132,409  
International Lease Finance Corp. 8.625% 2015
    13,430       15,344  
International Lease Finance Corp. 5.75% 2016
    9,000       9,589  
Liberty Mutual Group Inc. 6.50% 2035 1
    18,000       19,385  
Liberty Mutual Group Inc., Series B, 7.00% 2067 1,2
    11,185       10,682  
Liberty Mutual Group Inc., Series A, 7.80% 2087 1,2
    52,323       57,032  
Hospitality Properties Trust 7.875% 2014
    4,090       4,421  
Hospitality Properties Trust 5.125% 2015
    4,410       4,632  
Hospitality Properties Trust 6.30% 2016
    5,940       6,480  
Hospitality Properties Trust 5.625% 2017
    8,870       9,609  
Hospitality Properties Trust 6.70% 2018
    9,595       10,854  
Hospitality Properties Trust 5.00% 2022
    46,250       48,690  
Springleaf Finance Corp., Series I, 5.40% 2015
    13,513       12,204  
Springleaf Finance Corp., Term Loan B, 5.50% 2017 2,3,4
    49,290       48,353  
Springleaf Finance Corp., Series J, 6.90% 2017
    20,000       17,100  
HBOS PLC 6.75% 2018 1
    26,925       27,464  
LBG Capital No.1 PLC, Series 2, 7.875% 2020 1
    29,490       29,785  
HBOS PLC 6.00% 2033 1
    17,781       15,258  
Crescent Resources 10.25% 2017 1
    67,025       70,041  
Host Hotels & Resorts, LP, Series Q, 6.75% 2016
    11,414       11,785  
Host Hotels & Resorts LP 9.00% 2017
    3,850       4,216  
Host Hotels & Resorts LP 5.875% 2019
    16,100       17,790  
Host Hotels & Resorts LP 6.00% 2020
    4,000       4,440  
Host Hotels & Resorts LP 6.00% 2021
    7,000       8,032  
Host Hotels & Resorts LP, Series C, 4.75% 2023
    13,525       14,083  
MetLife Capital Trust IV, junior subordinated 7.875% 2067 1,2
    14,950       17,716  
MetLife Capital Trust X, junior subordinated 9.25% 2068 1,2
    18,500       24,513  
MetLife Inc., junior subordinated 10.75% 2069 2
    7,000       10,447  
iStar Financial Inc., Series B, 9.00% 2017
    48,915       52,584  
Developers Diversified Realty Corp. 5.50% 2015
    2,470       2,674  
Developers Diversified Realty Corp. 9.625% 2016
    20,326       25,326  
Developers Diversified Realty Corp. 7.50% 2017
    9,940       11,908  
Developers Diversified Realty Corp. 7.875% 2020
    6,040       7,799  
Royal Bank of Scotland Group PLC 4.70% 2018
    22,490       21,738  
RBS Capital Trust II 6.425% noncumulative trust (undated) 2
    9,780       8,117  
Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated) 1,2,7
    10,705       9,742  
American Tower Corp. 7.00% 2017
    21,825       26,008  
American Tower Corp. 7.25% 2019
    8,460       10,342  
Prologis, Inc. 7.625% 2014
    3,000       3,294  
Prologis, Inc. 6.25% 2017
    2,750       3,153  
Prologis, Inc. 6.625% 2018
    8,570       10,254  
Prologis, Inc. 7.375% 2019
    7,120       8,831  
Prologis, Inc. 6.875% 2020
    6,580       7,999  
Genworth Financial, Inc. 7.625% 2021
    14,935       15,271  
Genworth Financial, Inc., junior subordinated 6.15% 2066 2
    22,500       14,541  
Catlin Insurance Ltd., junior subordinated 7.249% (undated) 1,2
    30,275       29,783  
Synovus Financial Corp. 5.125% 2017
    21,493       21,063  
Synovus Financial Corp. 7.875% 2019
    7,585       8,419  
Regions Financial Corp. 7.75% 2014
    14,709       16,401  
Regions Financial Corp. 5.20% 2015
    5,300       5,525  
Regions Financial Corp. 5.75% 2015
    3,763       4,050  
Lazard Group LLC 7.125% 2015
    22,000       24,276  
Ford Motor Credit Co. 8.70% 2014
    1,000       1,138  
Ford Motor Credit Co. 5.625% 2015
    1,000       1,096  
Ford Motor Credit Co. 7.00% 2015
    3,000       3,367  
Ford Motor Credit Co. 8.00% 2016
    7,000       8,386  
Ford Motor Credit Co. 4.25% 2017
    6,000       6,384  
Ford Motor Credit Co. 6.625% 2017
    2,600       3,020  
Unum Group 7.125% 2016
    12,425       14,476  
Unum Group 5.625% 2020
    1,155       1,293  
AXA SA, junior subordinated 6.463% (undated) 1,2
    16,244       15,066  
Korea Development Bank 4.00% 2016
    1,000       1,090  
Korea Development Bank 3.50% 2017
    3,190       3,442  
Korea Development Bank 3.875% 2017
    9,360       10,210  
NASDAQ OMX Group, Inc. 5.25% 2018
    12,250       13,250  
BBVA Bancomer SA, junior subordinated 7.25% 2020 1
    1,700       1,849  
BBVA Bancomer SA 6.50% 2021 1
    8,305       9,140  
BNP Paribas, junior subordinated 7.195% (undated) 1,2
    10,000       9,505  
Barclays Bank PLC, junior subordinated 6.86% (undated) 1,2
    9,000       8,865  
HSBK (Europe) BV 7.25% 2021 1
    8,545       8,721  
Brandywine Operating Partnership, LP 7.50% 2015
    7,000       7,924  
QBE Capital Funding III LP 7.25% 2041 1,2
    7,650       7,758  
Zions Bancorporation 6.00% 2015
    7,310       7,668  
ACE Cash Express, Inc. 11.00% 2019 1
    7,155       6,761  
Rouse Co. 6.75% 2013 1
    6,250       6,406  
VEB Finance Ltd. 6.902% 2020 1
    4,950       5,860  
Banco de Crédito del Perú 5.375% 2020 1
    5,000       5,425  
The Export-Import Bank of Korea 4.375% 2021
    2,900       3,266  
Banco Mercantil del Norte, SA, junior subordinated 6.862% 2021 1,2
    2,000       2,175  
Banco Mercantil del Norte SA, junior subordinated 6.862% 2021 2
    745       810  
Banco del Estado de Chile 4.125% 2020 1
    2,500       2,706  
Allstate Corp., Series B, junior subordinated 6.125% 2067 2
    2,530       2,615  
Development Bank of Kazakhstan 5.50% 2015 1
    1,475       1,608  
Banco Votorantim SA 6.25% 2016 10
 
BRL7,064,120
      1,113  
              2,061,521  
                 
                 
INDUSTRIALS — 10.20%
               
CEVA Group PLC 11.625% 2016 1
  $ 25,205       25,961  
CEVA Group PLC 8.375% 2017 1
    46,525       45,304  
CEVA Group PLC 11.50% 2018 1
    43,382       38,610  
CEVA Group PLC 12.75% 2020 1
    122,000       101,565  
Ply Gem Industries, Inc. 13.125% 2014
    25,487       27,335  
Ply Gem Industries, Inc. 9.375% 2017 1
    11,900       11,989  
Ply Gem Industries, Inc. 8.25% 2018
    147,025       154,192  
Hawker Beechcraft Acquisition Co., LLC, Debtor in Possession Delayed Draw, 9.75% 2012 2,3,4
    28,615       29,113  
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.262% 2014 2,3,4
    4,911       3,217  
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 4.25% 2014 2,3,4
    163,487       107,084  
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 10.75% 2014 2,3,4
    25,146       16,848  
Hawker Beechcraft Acquisition Co., LLC 8.50% 2015 7
    8,045       1,448  
Hawker Beechcraft Acquisition Co., LLC 8.875% 2015 5,7
    57,450       10,341  
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017 7
    5,075       27  
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017
    143,967       141,808  
US Investigations Services, Inc., Term Loan B, 2.969% 2015 2,3,4
    8,907       8,365  
US Investigations Services, Inc., Term Loan D, 7.75% 2015 2,3,4
    48,540       48,520  
US Investigations Services, Inc. 10.50% 2015 1
    48,330       42,530  
US Investigations Services, Inc. 11.75% 2016 1
    20,350       17,094  
BE Aerospace, Inc. 5.25% 2022
    103,270       107,659  
Nortek Inc. 10.00% 2018 11
    47,735       52,986  
Nortek Inc. 8.50% 2021 11
    47,660       50,996  
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 5.45% 2014 2,3,4
    8,993       8,993  
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 5.45% 2014 2,3,4
    8,529       8,529  
DAE Aviation Holdings, Inc. 11.25% 2015 1
    82,414       85,299  
General Electric Capital Corp., Series B, junior subordinated 6.25% (undated) 2
    51,600       54,695  
General Electric Capital Corp., Series A, junior subordinated 7.125% (undated) 2
    23,500       26,291  
Euramax International, Inc. 9.50% 2016
    85,615       78,766  
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 2014
    2,557       2,896  
Nielsen Finance LLC and Nielsen Finance Co. 11.50% 2016
    6,492       7,287  
Nielsen Finance LLC, Term Loan 1L, 8.50% 2017 3,4
    28,000       30,287  
Nielsen Finance LLC and Nielsen Finance Co. 7.75% 2018
    9,700       10,985  
Nielsen Finance LLC and Nielsen Finance Co. 4.50% 2020 1
    17,500       17,478  
Esterline Technologies Corp. 6.625% 2017
    21,562       22,398  
Esterline Technologies Corp. 7.00% 2020
    41,460       46,228  
United Air Lines, Inc., Term Loan B, 2.25% 2014 2,3,4
    21,852       21,674  
United Air Lines, 1991 Equipment Trust Certificates, Series A, 10.11% 2006 3,7,8
    1,135       —  
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 2017 3
    2,370       2,513  
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 2018 3
    3,766       3,860  
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 2018 3
    2,194       2,221  
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 2019 3
    3,907       4,238  
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 2019 3
    941       1,002  
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 2020 3
    3,054       3,321  
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 2020 3
    9,237       9,497  
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 2021 1,3
    3,286       3,229  
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 2022 3
    4,582       4,983  
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 2022 3
    2,472       2,772  
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 2022 3
    282       321  
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 2022 3
    5,112       5,444  
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.625% 2017
    37,540       35,945  
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019
    17,575       15,949  
Navios Logistics Finance (US) Inc., 9.25% 2019
    3,225       3,048  
TRAC Intermodal 11.00% 2019 1
    47,275       49,639  
United Rentals, Inc. 7.375% 2020 1
    11,625       12,526  
United Rentals, Inc. 7.625% 2022 1
    31,725       34,818  
ARAMARK Corp. 3.945% 2015 2
    5,375       5,375  
ARAMARK Corp. 8.50% 2015
    16,875       17,297  
ARAMARK Corp. 8.625% 2016 1,2,5
    23,800       24,455  
RBS Global, Inc. and Rexnord LLC 8.50% 2018
    39,800       44,079  
TransDigm Inc. 7.75% 2018
    36,445       40,454  
Northwest Airlines, Inc., Term Loan B, 3.87% 2013 2,3,4
    5,781       5,752  
Delta Air Lines, Inc., Series 2010-B, Class 2-B, 6.75% 2017 1,3
    7,650       7,918  
Northwest Airlines, Inc., Term Loan A, 2.12% 2018 2,3,4
    8,640       8,122  
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 2024 3
    10,908       11,985  
JELD-WEN Escrow Corp. 12.25% 2017 1
    28,750       32,847  
Odebrecht Finance Ltd 5.125% 2022 1
    15,350       16,386  
Odebrecht Finance Ltd 6.00% 2023 1
    4,800       5,352  
Odebrecht Finance Ltd 7.125% 2042 1
    7,375       8,234  
ADS Waste Escrow, Term Loan B, 5.25% 2019 2,3,4
    19,925       20,068  
ADS Waste Escrow 8.25% 2020 1
    9,425       9,637  
Iron Mountain Inc. 5.75% 2024
    28,750       28,966  
American Airlines, Inc., Series 2001-1, Class B, 7.377% 2019 3
    6,428       5,436  
AMR Corp. 10.00% 2021 7
    9,000       5,715  
AMR Corp. 9.00% 2012 7
    16,155       10,420  
Baker Corp. 8.25% 2019 1
    14,400       14,652  
Florida East Coast Railway Corp. 8.125% 2017
    9,450       9,993  
CMA CGM 8.50% 2017 1
    12,800       9,024  
ENA Norte Trust 4.95% 2023 1,3
    7,350       7,400  
Sequa Corp., Term Loan B, 3.72% 2014 2,3,4
    6,469       6,463  
RZD Capital Ltd. 8.30% 2019
 
RUB141,500
      4,700  
              2,020,854  
                 
                 
HEALTH CARE — 8.88%
               
VWR Funding, Inc., Series B, 10.25% 2015 5
  $ 138,533       141,824  
VWR Funding, Inc. 7.25% 2017 1
    77,125       78,426  
Kinetic Concepts, Inc. 10.50% 2018 1
    94,405       100,305  
Kinetic Concepts, Inc. 12.50% 2019 1
    62,750       59,613  
PTS Acquisition Corp. 9.50% 2015 5
    119,206       122,037  
PTS Acquisition Corp. 9.75% 2017
  € 16,085       21,393  
Elan Finance PLC and Elan Finance Corp. 8.75% 2016
  $ 34,675       38,021  
Elan Finance PLC and Elan Finance Corp. 8.75% 2016
    19,385       21,275  
Elan Finance PLC and Elan Finance Corp. 6.25% 2019 1
    78,600       79,386  
VPI Escrow Corp. 6.375% 2020 1
    121,060       124,087  
Quintiles, Term Loan B, 5.00% 2018 2,3,4
    118,813       119,704  
inVentiv Health Inc. 10.00% 2018 1
    39,135       34,634  
inVentiv Health Inc. 10.00% 2018 1
    91,315       80,814  
Tenet Healthcare Corp. 7.375% 2013
    51,295       52,385  
Tenet Healthcare Corp. 9.25% 2015
    49,435       55,862  
HCA Inc. 6.375% 2015
    25,880       28,015  
HCA Inc., Term Loan B2, 3.612% 2017 2,3,4
    7,015       7,036  
HCA Inc. 6.50% 2020
    5,000       5,575  
HCA Inc. 7.875% 2020
    5,050       5,700  
HCA Holdings, Inc. 7.75% 2021
    8,750       9,581  
HCA Inc. 7.50% 2022
    25,300       28,779  
DJO Finance LLC 10.875% 2014
    8,000       8,320  
DJO Finance LLC 9.75% 2017
    6,428       5,496  
DJO Finance LLC 7.75% 2018
    9,891       9,075  
DJO Finance LLC 9.875% 2018 1
    44,710       44,375  
Patheon Inc. 8.625% 2017 1
    63,911       65,509  
Rotech Healthcare Inc. 10.75% 2015
    15,145       14,842  
Rotech Healthcare Inc. 10.50% 2018
    69,465       40,290  
Surgical Care Affiliates, Inc. 8.875% 2015 1
    28,684       29,473  
Surgical Care Affiliates, Inc. 10.00% 2017 1
    19,430       20,110  
Bausch & Lomb Inc. 9.875% 2015
    47,825       49,439  
Merge Healthcare Inc 11.75% 2015
    41,500       45,131  
Symbion Inc. 8.00% 2016
    40,675       41,895  
Multiplan Inc. 9.875% 2018 1
    30,450       33,799  
INC Research LLC 11.50% 2019 1
    30,120       30,421  
Centene Corp. 5.75% 2017
    26,935       28,955  
Grifols Inc. 8.25% 2018
    25,375       28,166  
Alkermes Inc., Term Loan B, 4.50% 2019 2,3,4
    17,420       17,529  
Boston Scientific Corp. 6.00% 2020
    12,086       14,390  
Accellent Inc. 8.375% 2017
    7,500       7,744  
Endo Pharmaceuticals Holdings Inc. 7.00% 2019
    1,960       2,122  
Endo Pharmaceuticals Holdings Inc. 7.00% 2020
    3,500       3,789  
Health Management Associates, Inc. 6.125% 2016
    3,000       3,285  
              1,758,607  
                 
                 
MATERIALS — 7.02%
               
Reynolds Group Inc. 8.50% 2018
    14,155       14,438  
Reynolds Group Inc. 7.125% 2019
    5,700       6,042  
Reynolds Group Inc. 7.875% 2019
    32,260       35,002  
Reynolds Group Inc. 9.00% 2019
    15,870       16,267  
Reynolds Group Inc. 9.875% 2019
    121,160       129,490  
Reynolds Group Inc. 5.75% 2020 1
    187,475       187,709  
Inmet Mining Corp. 8.75% 2020 1
    104,955       109,153  
ArcelorMittal 4.50% 2017 2
    19,750       19,395  
ArcelorMittal 5.75% 2021 2
    21,242       20,275  
ArcelorMittal 6.25% 2022 2
    28,575       28,200  
ArcelorMittal 6.75% 2041 2
    34,940       31,530  
Georgia Gulf Corp. 9.00% 2017 1
    81,885       91,916  
Ball Corp. 7.125% 2016
    15,285       16,622  
Ball Corp. 6.75% 2020
    2,555       2,823  
Ball Corp. 5.75% 2021
    16,830       18,218  
Ball Corp. 5.00% 2022
    44,740       46,921  
FMG Resources 7.00% 2015 1
    38,475       38,475  
FMG Resources 6.375% 2016 1
    3,000       2,933  
FMG Resources 6.00% 2017 1
    30,000       28,050  
FMG Resources 6.875% 2018 1
    3,000       2,801  
FMG Resources 8.25% 2019 1
    5,000       4,875  
JMC Steel Group Inc. 8.25% 2018 1
    69,405       71,140  
Ryerson Inc. 9.00% 2017 1
    40,700       41,768  
Ryerson Inc. 11.25% 2018 1
    13,650       13,735  
Taminco Global Chemical Corp. 9.75% 2020 1
    47,275       51,293  
MacDermid 9.50% 2017 1
    47,046       49,339  
Consolidated Minerals Ltd. 8.875% 2016 1
    56,985       47,013  
Smurfit Kappa Acquisition 7.75% 2019
  € 11,610       16,430  
Smurfit Capital Funding PLC 7.50% 2025
  $ 25,515       26,089  
Newpage Corp. 11.375% 2014 7
    56,550       35,909  
Packaging Dynamics Corp. 8.75% 2016 1
    25,345       26,866  
CEMEX Finance LLC 9.50% 2016 1
    10,400       10,790  
CEMEX Finance LLC 9.50% 2016
    6,850       7,107  
CEMEX SA 9.25% 2020 1
    7,635       7,694  
OMNOVA Solutions Inc. 7.875% 2018
    24,545       24,913  
Braskem Finance Ltd. 5.75% 2021 1
    2,100       2,237  
Braskem America Finance Co. 7.125% 2041 1
    17,650       18,797  
Braskem America Finance Co. 7.125% 2041
    2,045       2,178  
Graphic Packaging International, Inc. 9.50% 2017
    11,715       12,887  
Graphic Packaging International, Inc. 7.875% 2018
    8,965       9,974  
International Paper Co. 7.95% 2018
    17,575       22,653  
Mirabela Nickel Ltd. 8.75% 2018 1
    22,650       17,101  
Nufarm Ltd. 6.375% 2019 1
    16,000       16,000  
Ardagh Packaging Finance 7.375% 2017 1
    1,000       1,076  
Ardagh Packaging Finance 11.125% 2018 1,2,5
    5,175       4,980  
Ardagh Packaging Finance 9.125% 2020 1
    1,000       1,063  
              1,390,167  
                 
                 
INFORMATION TECHNOLOGY — 6.72%
               
First Data Corp. 9.875% 2015
    16,639       16,972  
First Data Corp. 9.875% 2015
    4,794       4,914  
First Data Corp. 10.55% 2015 5
    26,774       27,544  
First Data Corp. 11.25% 2016
    185,840       181,194  
First Data Corp., Term Loan D, 5.217% 2017 2,3,4
    73,036       72,205  
First Data Corp. 7.375% 2019 1
    5,000       5,181  
First Data Corp. 6.75% 2020 1
    18,225       18,202  
First Data Corp. 8.25% 2021 1
    53,071       53,204  
First Data Corp. 12.625% 2021
    113,026       117,688  
First Data Corp. 8.75% 2022 1,2,5
    77,575       78,545  
SRA International, Inc., Term Loan B, 6.50% 2018 2,3,4
    91,412       90,650  
SRA International, Inc. 11.00% 2019
    75,535       77,423  
Freescale Semiconductor, Inc., Term Loan, 4.481% 2016 2,3,4
    11,235       11,001  
Freescale Semiconductor, Inc. 10.125% 2016
    12,624       13,129  
Freescale Semiconductor, Inc. 9.25% 2018 1
    33,725       36,844  
Freescale Semiconductor, Inc. 10.125% 2018 1
    31,616       34,936  
Freescale Semiconductor, Inc., Term Loan B, 6.00% 2019 2,3,4
    45,770       45,970  
Freescale Semiconductor, Inc. 8.05% 2020
    3,000       2,970  
NXP BV and NXP Funding LLC 3.205% 2013 2
    337       337  
NXP BV and NXP Funding LLC 3.247% 2013 2,3
  € 1,418       1,822  
NXP BV and NXP Funding LLC 10.00% 2013 9
  $ 77,049       81,680  
NXP BV and NXP Funding LLC 9.75% 2018 1
    51,650       59,656  
Blackboard Inc., Term Loan B, 7.50% 2018 2,3,4
    94,994       96,003  
SunGard Data Systems Inc. 7.375% 2018
    17,700       19,072  
SunGard Data Systems Inc. 7.625% 2020
    23,484       25,597  
Hughes Satellite Systems Corp. 6.50% 2019
    8,900       9,567  
Hughes Satellite Systems Corp. 7.625% 2021
    23,850       26,533  
Jabil Circuit, Inc. 8.25% 2018
    11,915       14,209  
Jabil Circuit, Inc. 5.625% 2020
    6,000       6,450  
Jabil Circuit, Inc. 4.70% 2022
    14,800       14,800  
Lawson Software Inc., Term Loan B, 5.25% 2018 2,3,4
    7,000       7,037  
Lawson Software, Inc. 9.375% 2019 1
    21,950       24,474  
Serena Software, Inc. 10.375% 2016
    24,540       25,215  
NCR Corp. 5.00% 2022 1
    12,650       12,840  
Ceridian Corp. 11.25% 2015
    12,650       12,523  
Advanced Micro Devices, Inc. 7.75% 2020
    3,750       3,825  
              1,330,212  
                 
                 
ENERGY — 5.93%
               
Alpha Natural Resources, Inc. 9.75% 2018
    42,205       41,766  
Alpha Natural Resources, Inc. 6.00% 2019
    41,200       34,608  
Alpha Natural Resources, Inc. 6.25% 2021
    47,125       39,467  
Arch Coal, Inc. 8.75% 2016
    7,560       7,447  
Arch Coal, Inc. 7.00% 2019
    51,567       43,574  
Arch Coal, Inc. 7.25% 2021
    53,025       44,541  
Transocean Inc. 5.05% 2016
    11,400       12,754  
Transocean Inc. 6.375% 2021
    58,885       70,616  
Transocean Inc. 7.35% 2041
    2,385       3,145  
Peabody Energy Corp. 6.00% 2018 1
    57,750       58,039  
Peabody Energy Corp. 6.25% 2021 1
    22,300       22,300  
Petrobras International 5.75% 2020
    17,630       20,186  
Petrobras International 5.375% 2021
    44,730       50,634  
Petrobras International 6.875% 2040
    4,130       5,217  
Petrobras International Finance Co. 6.75% 2041
    2,025       2,526  
Regency Energy Partners LP and Regency Energy Finance Corp. 6.50% 2021
    11,000       11,825  
Regency Energy Partners LP and Regency Energy Finance Corp. 5.50% 2023
    61,825       62,675  
PDC Energy Inc. 7.75% 2022 1
    67,425       67,425  
CONSOL Energy Inc. 8.00% 2017
    35,895       37,690  
CONSOL Energy Inc. 8.25% 2020
    23,125       24,339  
Laredo Petroleum, Inc. 9.50% 2019
    41,350       47,036  
Laredo Petroleum, Inc. 7.375% 2022
    13,450       14,593  
NGPL PipeCo LLC 7.119% 2017 1
    5,950       6,352  
NGPL PipeCo LLC 9.625% 2019 1
    47,915       54,743  
Reliance Holdings Ltd. 4.50% 2020
    7,000       7,188  
Reliance Holdings Ltd. 5.40% 2022 1
    34,475       36,798  
Reliance Holdings Ltd. 6.25% 2040 1
    5,000       5,639  
Energy Transfer Partners, LP 7.50% 2020
    40,125       45,742  
Petroplus Finance Ltd. 6.75% 2014 1,7
    100,292       14,542  
Petroplus Finance Ltd. 7.00% 2017 1,7
    126,097       18,284  
Petroplus Finance Ltd. 9.375% 2019 1,7
    80,460       11,667  
Dolphin Energy Ltd. 5.50% 2021 1
    35,500       41,144  
Gazprom OJSC 5.092% 2015 1
    2,340       2,501  
Gazprom OJSC 4.95% 2016 1
    4,250       4,510  
Gazprom OJSC 5.999% 2021 1
    9,900       11,288  
Gazprom OJSC, Series 9, 6.51% 2022
    12,175       14,373  
Gazprom OJSC 7.288% 2037 1
    1,800       2,277  
Teekay Corp. 8.50% 2020
    19,135       20,187  
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 2018 1,3
    18,035       18,846  
Pemex Project Funding Master Trust 5.75% 2018
    5,850       6,881  
Pemex Project Funding Master Trust, Series 13, 6.625% 2035
    6,500       8,190  
Petróleos Mexicanos 6.50% 2041
    2,245       2,810  
Overseas Shipholding Group, Inc. 8.125% 2018
    25,725       17,236  
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 2021 1,3
    15,103       17,059  
Denbury Resources Inc. 9.75% 2016
    7,400       7,973  
Denbury Resources Inc. 8.25% 2020
    6,088       6,895  
TransCanada PipeLines Ltd., junior subordinated 6.35% 2067 2
    13,295       14,234  
Concho Resources Inc. 8.625% 2017
    3,300       3,655  
Concho Resources Inc. 7.00% 2021
    4,400       4,950  
Concho Resources Inc. 5.50% 2023
    5,000       5,231  
Continental Resources Inc. 8.25% 2019
    1,800       2,034  
Continental Resources Inc. 7.375% 2020
    700       787  
Continental Resources Inc. 7.125% 2021
    5,000       5,650  
Enterprise Products Operating LLC 7.00% 2067 2
    6,180       6,656  
El Paso Pipeline Partners Operating Co., LLC 5.00% 2021
    5,195       5,749  
Ras Laffan Liquefied Natural Gas II 5.298% 2020 1,3
    2,687       3,037  
Ras Laffan Liquefied Natural Gas II 5.298% 2020 3
    1,848       2,088  
Forest Oil Corp. 7.25% 2019
    4,000       3,990  
Enbridge Energy Partners, LP, junior subordinated 8.05% 2077 2
    3,500       3,969  
Transportadora de Gas Internacional 5.70% 2022 1
    3,600       3,888  
PTT Exploration & Production Ltd 6.35% 2042 1
    3,100       3,605  
              1,175,051  
                 
                 
CONSUMER STAPLES — 3.11%
               
Albertson’s, Inc. 7.25% 2013
    3,300       3,366  
SUPERVALU Inc. 7.50% 2014
    55,280       53,345  
SUPERVALU Inc. 8.00% 2016
    38,990       34,994  
SUPERVALU Inc., Term Loan B, 8.00% 2018 2,3,4
    50,922       51,313  
Rite Aid Corp. 9.75% 2016
    16,515       18,166  
Rite Aid Corp. 10.375% 2016
    15,250       16,203  
Rite Aid Corp. 10.25% 2019
    21,345       24,333  
Rite Aid Corp. 8.00% 2020
    18,575       21,176  
Tops Holding Corp. and Tops Markets, LLC. 10.125% 2015
    51,959       55,012  
Stater Bros. Holdings Inc. 7.75% 2015
    26,230       26,919  
Stater Bros. Holdings Inc. 7.375% 2018
    20,275       21,948  
Constellation Brands, Inc. 8.375% 2014
    4,650       5,295  
Constellation Brands, Inc. 7.25% 2017
    6,500       7,621  
Constellation Brands, Inc. 6.00% 2022
    20,575       23,507  
Constellation Brands, Inc. 4.625% 2023
    11,000       11,275  
C&S Group Enterprises LLC 8.375% 2017 1
    43,378       45,764  
Smithfield Foods, Inc. 7.75% 2017
    11,500       12,995  
Smithfield Foods, Inc. 6.625% 2022
    20,630       21,455  
Ingles Markets, Inc. 8.875% 2017
    29,725       32,177  
Del Monte Corp. 7.625% 2019
    29,675       30,677  
BFF International Ltd. 7.25% 2020 1
    23,950       28,927  
Cott Beverages Inc. 8.375% 2017
    8,700       9,581  
Cott Beverages Inc. 8.125% 2018
    13,325       14,874  
Spectrum Brands Inc. 9.50% 2018
    12,175       13,788  
Pilgrim’s Pride Corp. 7.875% 2018
    10,000       9,575  
CEDC Finance Corp. 9.125% 2016 1
    11,500       8,021  
Post Holdings, Inc. 7.375% 2022 1
    7,500       8,006  
TreeHouse Foods, Inc. 7.75% 2018
    5,600       6,132  
              616,445  
                 
                 
UTILITIES — 2.44%
               
TXU, Term Loan, 3.728% 2014 2,3,4
    3,802       2,837  
TXU, Term Loan, 4.728% 2017 2,3,4
    139,658       96,434  
Texas Competitive Electric Holdings Co. LLC, 11.50% 2020 1
    67,845       53,428  
AES Corp. 7.75% 2015
    5,575       6,328  
AES Corp. 8.00% 2017
    34,000       39,440  
AES Corp. 8.00% 2020
    16,300       19,030  
AES Corp. 7.375% 2021
    5,775       6,612  
Intergen Power 9.00% 2017 1
    71,950       69,612  
NRG Energy, Inc. 8.25% 2020
    6,000       6,570  
NRG Energy, Inc. 6.625% 2023 1
    39,000       39,926  
Edison Mission Energy 7.50% 2013
    8,000       4,440  
Midwest Generation, LLC, Series B, 8.56% 2016 3
    21,150       19,458  
Edison Mission Energy 7.00% 2017
    3,095       1,617  
Edison Mission Energy 7.20% 2019
    19,200       9,984  
Edison Mission Energy 7.625% 2027
    14,205       7,351  
CMS Energy Corp. 8.75% 2019
    21,125       27,531  
CMS Energy Corp. 5.05% 2022
    5,750       6,364  
NV Energy, Inc 6.25% 2020
    26,150       30,355  
Entergy Corp. 4.70% 2017
    21,100       23,035  
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 2017 1
    2,000       2,320  
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 2021 1
    4,125       4,790  
Enersis SA 7.375% 2014
    5,000       5,358  
              482,820  
                 
                 
Total corporate bonds, notes & loans
            16,681,409  
                 
                 
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 4.55%
               
United Mexican States Government, Series M10, 8.00% 2015
 
MXN70,000
      5,945  
United Mexican States Government Global, Series A, 5.625% 2017
  $ 3,000       3,522  
United Mexican States Government, Series M10, 7.75% 2017
 
MXN120,000
      10,515  
United Mexican States Government 4.00% 2019 10
    23,672       2,234  
United Mexican States Government, Series M, 6.50% 2021
    435,000       36,975  
United Mexican States Government Global, Series A, 3.625% 2022
  $ 15,700       17,160  
United Mexican States Government, Series M20, 10.00% 2024
 
MXN45,000
      4,925  
United Mexican States Government, Series M30, 10.00% 2036
    39,500       4,396  
United Mexican States Government 4.00% 2040 10
    96,107       9,796  
United Mexican States Government Global 4.75% 2044
  $ 7,712       8,599  
Brazil (Federal Republic of) Global 12.50% 2016
 
BRL13,350
      8,301  
Brazil (Federal Republic of) 10.00% 2017
    35,620       18,161  
Brazil (Federal Republic of) 6.00% 2017 10
    25,741       14,403  
Brazil (Federal Republic of) Global 8.00% 2018 3
  $ 2,499       2,981  
Brazil (Federal Republic of) Global 4.875% 2021
    3,100       3,720  
Brazil (Federal Republic of) Global 8.50% 2024
 
BRL22,000
      12,751  
Brazil (Federal Republic of) Global 10.25% 2028
    15,000       9,711  
Brazil (Federal Republic of) Global 7.125% 2037
  $ 2,500       3,781  
Brazil (Federal Republic of) 6.00% 2045 10
 
BRL21,469
      13,899  
Turkey (Republic of) 4.00% 2015 10
 
TRY11,781
      7,100  
Turkey (Republic of) 10.00% 2015
    15,100       8,918  
Turkey (Republic of) 9.00% 2016
    4,100       2,380  
Turkey (Republic of) 7.50% 2017
  $ 9,700       11,664  
Turkey (Republic of) 6.75% 2018
    12,200       14,442  
Turkey (Republic of) 10.50% 2020
 
TRY 3,750
      2,363  
Turkey (Republic of) 3.00% 2021 10
    14,487       8,380  
Turkey (Republic of) 5.625% 2021
  $ 20,450       23,415  
Turkey (Republic of) 6.875% 2036
    3,200       4,072  
Turkey (Republic of) 6.75% 2040
    2,500       3,169  
Colombia (Republic of) Global 8.25% 2014
    4,000       4,654  
Colombia (Republic of) Global 12.00% 2015
 
COP19,150,000
      13,142  
Colombia (Republic of) Global 7.375% 2019
  $ 11,650       15,465  
Colombia (Republic of) Global 11.75% 2020
    1,936       3,161  
Colombia (Republic of) Global 4.375% 2021
    1,700       1,966  
Colombia (Republic of) Global 7.75% 2021
 
COP 1,780,000
      1,225  
Colombia (Republic of) Global 9.85% 2027
    12,085,000       10,226  
Colombia (Republic of) Global 10.375% 2033
  $ 823       1,512  
Colombia (Republic of) Global 7.375% 2037
    4,139       6,384  
Bahrain Government 5.50% 2020
    47,513       49,022  
Bahrain Government 5.50% 2020 1
    2,087       2,153  
Russian Federation 7.85% 2018
 
RUB215,000
      7,409  
Russian Federation 7.85% 2018
    115,000       3,963  
Russian Federation 5.00% 2020
  $ 14,300       16,452  
Russian Federation 12.75% 2028
    2,000       3,880  
Russian Federation 7.50% 2030 3
    14,978       18,939  
Venezuela (Republic of) 10.75% 2013
    6,000       6,180  
Venezuela (Republic of) 8.50% 2014
    1,250       1,262  
Venezuela (Republic of) 5.75% 2016
    3,000       2,749  
Venezuela (Republic of) 7.65% 2025
    8,455       6,658  
Venezuela (Republic of) 9.25% 2027
    21,545       19,531  
Venezuela (Republic of) 9.25% 2028
    11,540       10,213  
Indonesia (Republic of) 10.375% 2014
    1,800       2,052  
Indonesia (Republic of) 6.875% 2017 1
    1,000       1,204  
Indonesia (Republic of) 6.875% 2018 1
    9,425       11,581  
Indonesia (Republic of) 6.875% 2018
    8,000       9,830  
Indonesia (Republic of) 4.875% 2021
    5,600       6,433  
Indonesia (Republic of) 3.75% 2022
    1,125       1,193  
Indonesia (Republic of) 6.625% 2037 1
    2,500       3,331  
Indonesia (Republic of) 5.25% 2042
    5,450       6,206  
Philippines (Republic of) 4.00% 2021
    16,350       18,312  
Philippines (Republic of) 4.95% 2021
 
PHP144,000
      3,650  
Philippines (Republic of) 5.50% 2026
  $ 6,925       8,700  
Philippines (Republic of) 6.25% 2036
 
PHP374,000
      10,060  
Polish Government, Series 0414, 5.75% 2014
 
PLN24,554
      7,863  
Polish Government, Series 1017, 5.25% 2017
    36,050       11,784  
Polish Government 6.375% 2019
  $ 3,535       4,379  
Polish Government 5.125% 2021
    14,225       16,608  
Chilean Government 5.50% 2020
 
CLP3,834,000
      8,600  
Chilean Government 6.00% 2020
    1,565,000       3,430  
Chilean Government 3.25% 2021
  $ 8,325       9,053  
Chilean Government 6.00% 2021
 
CLP4,345,000
      9,571  
Uruguay (Republic of) 5.00% 2018 10
 
UYU197,996
      11,157  
Uruguay (Republic of) 4.25% 2027 3,10
    177,822       10,443  
Uruguay (Republic of) 4.375% 2028 10
    109,200       6,427  
Latvia (Republic of) 5.25% 2017 1
  $ 20,080       22,138  
Latvia (Republic of) 5.25% 2021
    4,200       4,728  
South Africa (Republic of) 5.50% 2020
    6,200       7,394  
South Africa (Republic of), Series R-214, 6.50% 2041
 
ZAR193,000
      19,033  
Croatian Government 6.25% 2017 1
  $ 11,850       12,857  
Croatian Government 6.75% 2019 1
    4,510       5,108  
Croatian Government 6.375% 2021 1
    2,810       3,131  
Panama (Republic of) Global 7.125% 2026
    585       832  
Panama (Republic of) Global 8.875% 2027
    6,500       10,579  
Panama (Republic of) Global 6.70% 2036 3
    6,440       9,080  
Hungarian Government 4.75% 2015
    3,500       3,521  
Hungarian Government, Series 17/B, 6.75% 2017
 
HUF1,012,000
      4,570  
Hungarian Government 6.25% 2020
  $ 5,800       6,321  
Hungarian Government 6.375% 2021
    700       766  
Hungarian Government 7.625% 2041
    4,500       5,108  
Iraq (Republic of) 5.80% 2028 3
    21,500       19,888  
Sri Lanka (Republic of) 6.25% 2021 1
    3,300       3,605  
Sri Lanka (Republic of) 5.875% 2022 1
    14,250       15,402  
South Korean Government 5.00% 2014
 
KRW11,325,000
      10,619  
South Korean Government 5.50% 2017
    2,800,000       2,825  
Dominican Republic 7.50% 2021 1,3
  $ 10,000       11,350  
Dominican Republic 7.50% 2021 3
    450       511  
Peru (Republic of) 7.125% 2019
    8,545       11,354  
Argentina (Republic of) 7.00% 2015
    2,385       2,186  
Argentina (Republic of) GDP-Linked 2035
    56,982       7,579  
Lithuania (Republic of) 6.625% 2022 1
    6,225       7,742  
Corporacion Andina de Fomento 4.375% 2022
    6,815       7,427  
Romanian Government 6.75% 2022 1
    5,400       6,095  
Israeli Government 4.00% 2022
    4,000       4,258  
Province of Buenos Aires 10.875% 2021 1,3
    4,890       3,594  
State of Qatar 5.25% 2020
    3,000       3,563  
Gabonese Republic 8.20% 2017
    2,800       3,444  
              902,2 99  
                 
                 
U.S. TREASURY BONDS & NOTES — 0.52%
               
U.S. Treasury 1.375% 2013
    21,500       21,601  
U.S. Treasury 1.875% 2014
    58,000       59,358  
U.S. Treasury 3.25% 2016
    20,000       22,069  
              103,028  
                 
                 
MORTGAGE-BACKED OBLIGATIONS 3 — 0.18%
               
American Tower Trust I, Series 2007-1A, Class E, 6.249% 2037 1
    8,025       8,458  
American Tower Trust I, Series 2007-1A, Class F, 6.639% 2037 1
    27,010       27,503  
              35,961  
                 
                 
MUNICIPALS — 0.07%
               
State of New Jersey, Economic Development Authority, Energy Facility Revenue Bonds (ACR Energy Partners, LLC Project),
               
Series 2011-B, 12.00% 2030 1
    12,385       13,414  
                 
                 
                 
Total bonds, notes & other debt instruments (cost: $17,230,789,000)
            17,736,111  
                 
                 
   
Shares or
         
Convertible securities — 0.69%
 
principal amount
         
                 
INFORMATION TECHNOLOGY — 0.37%
               
Linear Technology Corp., Series A, 3.00% convertible notes 2027
  $ 46,000,000       47,869  
Liberty Media Corp. 3.50% convertible notes 2031
  $ 48,500,000       22,973  
Suntech Power Holdings Co., Ltd. 3.00% convertible notes 2013
  $ 4,650,000       2,325  
              73,167  
                 
                 
ENERGY — 0.11%
               
Apache Corp., Series D, 6.00% convertible preferred 2013
    455,000       22,136  
                 
                 
TELECOMMUNICATION SERVICES — 0.09%
               
Leap Wireless International, Inc. 4.50% convertible notes 2014
  $ 12,500,000     $ 11,968  
Clearwire Corp. 8.25% convertible notes 2040 1
  $ 7,722,000       5,642  
              17,610  
                 
                 
CONSUMER DISCRETIONARY — 0.09%
               
Cooper-Standard Holdings Inc. 7.00% convertible preferred 1,8,11
    99,687       16,491  
                 
                 
UTILITIES — 0.03%
               
PPL Corp. 9.50% convertible preferred 2013, units
    121,677       6,516  
                 
                 
Total convertible securities (cost: $124,915,000)
            135,920  
                 
                 
                 
Preferred securities — 0.52%
 
Shares
         
                 
FINANCIALS — 0.52%
               
Ally Financial Inc., Series G, 7.00% 1
    34,250       32,042  
Ally Financial Inc., Series 2, 8.125% preferred
    650,000       16,381  
Zions Bancorporation, Series C, 9.50% noncumulative depositary shares
    500,000       13,085  
Swire Pacific Ltd. 8.84% cumulative guaranteed perpetual capital securities 1
    450,000       12,783  
First Republic Bank, Series A, noncumulative convertible preferred
    400,000       10,875  
Citigroup Inc. 6.95% preferred
    228,000       5,736  
Citigroup Inc. 7.875% preferred
    150,150       4,195  
HSBC Holdings PLC, Series 2, 8.00%
    300,000       8,522  
                 
Total preferred securities (cost: $91,542,000)
            103,619  
                 
                 
                 
Common stocks — 1.40%
               
                 
INDUSTRIALS — 0.34%
               
Nortek, Inc. 11,12
    793,646       43,436  
Delta Air Lines, Inc. 12
    2,373,769       21,744  
Atrium Corp. 1,8,12
    10,987       728  
United Continental Holdings, Inc. 12
    22,981       448  
ACF Industries Holding Corp. 8,12
    4,746       —  
              66,3 56  
                 
                 
CONSUMER DISCRETIONARY — 0.33%
               
Cooper-Standard Holdings Inc. 11,12
    1,238,538       46,445  
American Media, Inc. 1,8,11,12
    1,122,345       11,380  
Ford Motor Co.
    810,210       7,989  
Five Star Travel Corp. 1,8,12
    83,780       23  
Adelphia Recovery Trust, Series Arahova 12
    1,773,964       18  
Adelphia Recovery Trust, Series ACC-1 8,12
    10,643,283       1  
              65,856  
                 
                 
FINANCIALS — 0.30%
               
American Tower Corp.
    538,967       38,477  
Citigroup Inc.
    405,574       13,270  
CIT Group Inc. 12
    124,904       4,920  
Bank of America Corp.
    390,000       3,444  
              60,111  
                 
                 
MATERIALS — 0.28%
               
Georgia Gulf Corp.
    1,523,408       55,178  
                 
               
                 
TELECOMMUNICATION SERVICES — 0.15%
               
Frontier Communications Corp., Class B
    6,000,000     $ 29,400  
                 
                 
ENERGY — 0.00%
               
General Maritime Corp. 1,8,12
    12,599       464  
Petroplus Holdings AG 8,12
    3,360,000       —  
              464  
                 
                 
INFORMATION TECHNOLOGY — 0.00%
               
Remark Media, Inc. 1,8,12
    25,710       31  
                 
                 
Total common stocks (cost: $241,992,000)
            277,396  
                 
                 
                 
Warrants — 0.03%
               
                 
CONSUMER DISCRETIONARY — 0.03%
               
Revel Holdings, Inc., warrants, expire 2021 1,8,12
    16,916       2,960  
Cooper-Standard Holdings Inc., warrants, expire 2017 11,12
    196,935       2,551  
Charter Communications, Inc., warrants, expire 2014 12
    13,390       348  
              5,859  
                 
                 
ENERGY — 0.00%
               
General Maritime Corp., warrants, expire 2017 1,8,12
    19,483       153  
                 
                 
Total warrants (cost: $7,329,000)
            6,012  
                 
                 
   
Principal amount
         
Short-term securities — 8.39%
    (000 )        
                 
Freddie Mac 0.10%–0.17% due 10/2/2012–5/29/2013
  $ 385,500       385,397  
Federal Home Loan Bank 0.11%–0.19% due 10/16/2012–3/15/2013
    361,600       361,491  
Fannie Mae 0.135%–0.19% due 10/1/2012–7/1/2013
    339,750       339,619  
U.S. Treasury Bills 0.12%–0.16% due 10/25/2012–5/30/2013
    163,500       163,458  
Wal-Mart Stores, Inc. 0.11% due 10/11–10/19/2012 1
    75,200       75,197  
E.I. duPont de Nemours and Co. 0.14%–0.15% due 10/10–10/30/2012 1
    74,000       73,994  
Coca-Cola Co. 0.18%–0.21% due 1/15–1/25/2013 1
    64,000       63,963  
Jupiter Securitization Co., LLC 0.16% due 10/1/2012 1
    25,000       25,000  
Chariot Funding, LLC 0.21% due 12/13/2012 1
    15,000       14,996  
United Technologies Corp. 0.16% due 10/29/2012 1
    34,900       34,892  
Wells Fargo & Co. 0.16% due 11/26/2012
    34,700       34,685  
Medtronic Inc. 0.13% due 10/16/2012 1
    31,000       30,998  
Procter & Gamble Co. 0.12% due 10/1/2012 1
    30,000       30,000  
Straight-A Funding LLC 0.17% due 11/16/2012 1
    25,000       24,995  
Regents of the University of California 0.18% due 10/9/2012
    3,000       3,000  
                 
Total short-term securities (cost: $1,661,603,000)
            1,661,685  
                 
                 
Total investment securities (cost: $19,358,170,000)
            19,920,743  
Other assets less liabilities
            (112,073 )
                 
Net assets
          $ 19,808,670  
 
 
 
1 Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $6,411,646,000, which represented 32.37% of the net assets of the fund.
 
2 Coupon rate may change periodically.
 
3 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
 
4 Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,950,200,000, which represented 9.85% of the net assets of the fund.
 
5 Payment in kind; the issuer has the option of paying additional securities in lieu of cash.
 
6 Step bond; coupon rate will increase at a later date.
 
7 Scheduled interest and/or principal payment was not received.
 
8 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $121,146,000, which represented .61% of the net assets of the fund.
 
9 Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.
 
 
                 
Percent
 
 
Acquisition
 
Cost
   
Value
   
of net
 
 
date
    (000 )     (000 )  
assets
 
                         
NXP BV and NXP Funding LLC 10.00% 2013
7/17/2009
  $ 72,739     $ 81,680       .42 %
Gray Television, Inc., Series D, 17.00% (undated)
6/26/2008
    11,913       12,573       .06  
Total restricted securities
    $ 84,652     $ 94,253       .48 %
 
 
 
10 Index-linked bond whose principal amount moves with a government price index.
 
11 Represents an affiliated company as defined under the Investment Company Act of 1940.
 
12 Security did not produce income during the last 12 months.
 
 

Key to abbreviations and symbol

BRL = Brazilian reais
CLP = Chilean pesos
COP = Colombian pesos
€ = Euros
HUF = Hungarian forints
KRW = South Korean won
MXN = Mexican pesos
PHP = Philippine pesos
PLN = Polish zloty
RUB = Russian rubles
TRY = Turkish lira
UYU = Uruguayan pesos
ZAR = South African rand







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 prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
 

 

MFGEFPX-021-1112O-S32853
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT PORTFOLIO

To the Shareholders and Board of Trustees of
American High-Income Trust:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of American High-Income Trust (the “Fund”) as of September 30, 2012, and for the year then ended and have issued our report thereon dated November 12, 2012, which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR.  Our audit also included the Fund’s investment portfolio (the “Schedule”) as of September 30, 2012, appearing in Item 6 of this Form N-CSR.  This Schedule is the responsibility of the Fund’s management.  Our responsibility is to express an opinion based on our audit.  In our opinion, the Schedule referred to above, when considered in relation to the basic financial statements taken as a whole of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

 
DELOITTE & TOUCHE LLP

Costa Mesa, California
November 12, 2012
 
 
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
 
 
ITEM 11 – Controls and Procedures

(a)
The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
   
(b)
There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.


ITEM 12 – Exhibits

(a)(1)
The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.
   
(a)(2)
The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.
 
 
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
AMERICAN HIGH-INCOME TRUST
   
 
By /s/ David C. Barclay
 
David C. Barclay, President and
Principal Executive Officer
   
 
Date: November 30, 2012



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By /s/ David C. Barclay
David C. Barclay, President and
Principal Executive Officer
 
Date: November 30, 2012



By /s/ Karl C. Grauman
Karl C. Grauman, Treasurer and
Principal Financial Officer
 
Date: November 30, 2012
 
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