A flexible approach to U.S. growth and income investing

Investing in growth

Fundamental Investors®

INCEPTION DATE
August 01, 1978

IMPLEMENTATION
Consider for a large-cap core allocation

OBJECTIVE
The fund’s investment objective is to achieve long-term growth of capital and income

VEHICLE

Fundamental Investors

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INVESTING IN GROWTH

Fundamental Investors investment professionals use in-depth, bottom-up research to identify undervalued companies with attractive appreciation potential.

INVESTING IN GROWTH

Identifying the companies powering growth

Fundamental Investors makes investments in the companies powering economic growth and developing new products and services. Our investment professionals seek to identify overlooked companies with attractive prospects for capital appreciation, including those outside of traditional industries.

IDENTIFYING LONG-TERM LEADERS IN A BROAD RANGE OF SECTORS
Examples of top holdings in the portfolio (as of December 31, 2025)*

This graphic shows examples of top holdings by portfolio weight in Fundamental Investors. The three examples cited include information technology firm Taiwan Semiconductor Manufacturing Company Limited (market cap of $1,279,274 million), health care firm Eli Lilly (market cap of $1,016,476 million) and Industrials firm TransDigm (market cap of $74,971 million).

Investment thesis

Taiwan Semiconductor Manufacturing Company Limited

  • TSMC is the world’s largest integrated circuit foundry with more than 90% share of leading edge processors and 100% in logic and AI data-center semiconductors. The company has facilities in Taiwan, Japan, Singapore, China and U.S.
  • TSMC’s scale, advanced process technology and industry-leading yields create substantial barriers for competitors.
  • TSMC appears well positioned to benefit from strong semiconductor demand driven by AI, cloud computing and premium mobile devices. AI-related compute and data center chips remain the fastest growing semiconductor segment,with global semiconductor markets expected to expand significantly through 2026, propelled by Logic and Memory demand tied to AI workloads.

Eli Lilly

  • A U.S.-based global pharmaceutical company advancing innovative therapies across diabetes, obesity,oncology and neuroscience. The firm has emerged as a market leader in obesity care, powered by blockbuster treatments such as Mounjaro and Zepbound.
  • With more than 450 million people living with diabetes and over 650 million clinically obese individuals worldwide, Eli Lilly appears positioned to benefit from substantial long-term demand for effective metabolic therapies over the coming decades.
  • Eli Lilly’s growth has been driven by strong momentum from Mounjaro and the continued advancement of Orforglipron, its oral GLP-1 candidate. As a convenient, orally administered therapy with significant potential, Orforglipron is viewed as a transformative product that could compete directly with injectable GLP-1 offerings from rival manufacturers.

TransDigm

  • A U.S.-based aerospace and defense supplier specializing in highly engineered, mission critical aircraft components, serving both commercial and military platforms. TransDigm designs, produces and supplies proprietary systems, many of which are sole sourced and essential to aircraft operations.
  • With global air travel continuing to rise and airlines extending the life of existing fleets, TransDigm is benefiting from strong, recurring demand for aftermarket parts. This positions TransDigm as one of the world's leading suppliers to both the commercial aftermarket and major OEMs such as Boeing and Airbus.
  • TransDigm’s management culture and business model reinforce its durable pricing power. The combination of control over niche parts, regulatory switching barriers and strong operational execution has created the potential for sustainable pricing power and resilient long-term growth for the firm.


Footnote/Important information:

*Companies shown are among the top 20 holdings by weight in Fundamental Investors as of 12/31/25 (Broadcom, Microsoft, Alphabet, NVIDIA, Philip Morris International, Micron Technology, Taiwan Semiconductor Manufacturing Company Limited, Amazon.com, TransDigm Group, Meta Platforms, SK hynix, British American Tobacco, Eli Lilly, Apple, Visa, KLA, GE Aerospace, MicroStrategy, UnitedHealth Group, Welltower).

Sources: FactSet, Capital Group and Morningstar. As of December 31, 2025.

Fundamental Investors

Fundamental Investors is offered in various share classes designed for retirement plans, nonprofits, and other institutional and individual investors.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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