American Funds SMALLCAP World Fund NCSR Certified annual shareholder report (management investment company)

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: 811-05888

SMALLCAP World Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

6455 Irvine Center Drive

Irvine, California 92618

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (949) 975-5000

Date of fiscal year end: September 30

Date of reporting period: September 30, 2020

Hong T. Le

SMALLCAP World Fund, Inc.

6455 Irvine Center Drive

Los Angeles, California 90071

(Name and Address of Agent for Service)

ITEM 1 – Reports to Stockholders

SMALLCAP World Fund^®

Annual report
for the year ended
September 30, 2020

We believe small
companies around
the world can provide
opportunities for
investors

Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Capital Group website (capitalgroup.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.

SMALLCAP World Fund seeks to provide you with long-term growth of capital.

This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For nearly 90 years, Capital Group 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 5.75%) 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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com.

See page 4 for Class A share results with relevant sales charges deducted. For other share class results, visit capitalgroup.com and americanfundsretirement.com

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 capitalgroup.com for more information.

Investing outside the United States may be subject to risks, such as currency fluctuations and political instability. These risks may be heightened in connection with investments in developing countries. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. 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.

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

Contents

1	Letter to investors

4	The value of a long-term perspective

6	Summary investment portfolio

15	Financial statements

42	Board of directors and other officers

Fellow investors:

In a 12-month period marked by the end of a long bull market, a sharply declining bear market and an equally intense equity market recovery, SMALLCAP World Fund posted a substantial total return for the fund’s fiscal year.

For the period ended September 30, 2020, the fund returned 24.98%. These returns reflect a one-time capital gains payment of just over $2.49 a share.

By way of comparison, the fund’s primary index benchmark, the MSCI All Country World Small Cap Index — an unmanaged measure of small-capitalization companies from around the world — gained 3.22% over the same period.

We can attribute a great deal of this strong relative return to our deep fundamental research, which informs our stock selection process. The fund’s returns during the bear market earlier this year, while negative, were stronger than that of the fund’s benchmarks, and the subsequent market rally favored more growth-oriented stocks.

While we are gratified with the fund’s results, we would caution our shareholders, as we often do, that such outsized returns are not the norm. We continue to take a long-term approach to our investments within the fund, a stance that has served the fund well over longer periods, and we encourage you to take a similar long-term view in your own investments.

The year in review

When we last reported to you a year ago, it would have been hard to imagine the confluence of events we’ve seen since. The onset of the COVID-19 pandemic during the winter and the unprecedented economic disruptions that followed had a jarring and severe effect on equities around the world, with the depth of the declines varying depending on a given nation’s efforts to combat the virus and stabilize economies.

The United States saw a sharp decline in both equity markets and overall economic activity in February and March as COVID-19 spread throughout the country. The rapid and unprecedented response by the U.S.

Results at a glance

For periods ended September 30, 2020, with all distributions reinvested

	Cumulative total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime (since 4/30/90)

SMALLCAP World Fund (Class A shares)		24.98	%		12.97	%		10.71	%		9.99	%
MSCI All Country World Small Cap Index*		3.22			7.63			7.88			7.73

The MSCI All Country World Small Cap Index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Results reflect dividends net of withholding taxes. Because the index was not in existence when the fund’s Class A shares were first sold, cumulative returns through May 31, 1994, reflect the returns of the S&P Developed <$1.2 Billion Index. MSCI source: MSCI. S&P source: S&P Dow Jones Indices LLC.

SMALLCAP World Fund

Federal Reserve, along with fiscal support from the government, allowed stocks to recover quickly. Unemployment remains significantly above pre-COVID levels, and the potential for another wave during the winter months increases uncertainty. Other countries have had varying degrees of success balancing the fight against COVID-19 with economic recovery, though overall global markets have recovered from their springtime lows.

To put this into greater perspective, U.S. GDP declined 5% in the first quarter of 2020 and a truly unprecedented 31.4% in the second quarter. In the United Kingdom, GDP fell 2.1% in the first quarter and 21.5% in the second quarter; for the Eurozone, first and second quarter GDP declines were 3.7% and 11.8%, respectively.

Asian economies generally suffered similarly, though China — the first nation to suffer through pandemic-related economic disruptions — posted an 11.7% increase in second-quarter GDP after a first-quarter decline of 10%.

Throughout these serious economic declines, equities continued to rally through the summer, though not without significant bouts of volatility prompted by government activity, health warnings and the U.S. presidential election. Generally speaking, the beneficiaries of this rally have been the companies whose longer term prospects may have been highlighted by the changes the pandemic has brought, such as information technology and healthcare, which have been critical to the response to COVID. Cyclical stocks like energy, on the other hand, have suffered due to significantly lower demand because of reduced economic activity and work-from-home mandates. Certain financial stocks declined due to lower interest rates and concerns about rising credit costs. Other areas directly impacted by the pandemic, such as travel, have seen declines, but value is emerging for strong companies that can emerge from the pandemic crisis with solid businesses and balance sheets.

How the fund responded

No matter the market environment, the managers of SMALLCAP World Fund continue to hew closely to the fund’s goal of finding long-term investments in small companies with the potential to disrupt existing industries or create new ones. As part of that goal, a given company’s long-term viability through difficult market cycles is a key indicator of potential. We believe the fund’s results over the past year reflect that.

Of the fund’s top 20 holdings, 18 saw positive returns during the period, led by ninth-largest holding DocuSign (up 247.6%) and third-largest holding Evolution Gaming (up 236.1%); both companies represent key investments in online services. The two top holdings to decline during the period were blood and plasma supply company Haemonetics Corp., the 18th-largest holding (down 30.8%) and Brazilian health insurer Notre Dame Intermedica, the 20th largest (down 11.3%).

The top returning holdings for the period included German home improvement e-commerce retailer Westwing Group (up 867.4%) and biopharmaceutical company Adaptimmune Therapeutics (up 428.5%). The fund’s top decliners were Canadian oil and gas company NuVista Energy (down 74.3%) and travel software platform provider Sabre (down 70.9%).

Overall, stock selection powered the fund’s relative returns against its benchmark during the period. On an absolute and relative basis, the fund’s holdings in the information technology sector led returns, followed by consumer discretionary stocks.

While the fund’s holdings in the financial, real estate, energy and utilities sectors dragged on absolute returns, the fund had fewer holdings in these sectors than the benchmark index overall, and those holdings lost less as well. Only the fund’s holdings in the materials sector, at just over 2% of the entire portfolio, detracted from both absolute and relative returns.

In terms of geography, 46.5% of the fund’s holdings were based in the United States and were additive to returns on an absolute and relative basis. Another 14.4% of shares were held in emerging markets stocks, which saw positive returns on an absolute and relative basis. Shares of European companies outside the eurozone, representing 8% of the portfolio, saw strong absolute and relative returns, while the fund’s Japanese holdings, at just 6.2% of the fund, also added significantly to returns. The fund’s holdings in the United Kingdom, at 6.7% of the portfolio, bettered the index’s returns significantly, while holdings in Asian shares outside of Japan saw positive returns but detracted from returns compared to the index.

The fund ended the fiscal year with 4.7% of the portfolio held in cash and other short-term assets, less liabilities. This liquidity remains an important tool for the fund’s investment professionals to take advantage of potential investment opportunities as they arise, and can help mitigate the effects of market volatility as well.

It’s worth noting that these allocations to industry sectors, geography and cash are not predetermined by the fund’s managers. Within The Capital System™, each portfolio manager invests in stocks as he or she sees fit. Thus, these allocations represent dozens of independent decisions rather than a handful of collective ones, and represent our investment professionals’ best thinking.

2	SMALLCAP World Fund

The road ahead

When we wrote this letter a year ago, we felt that the bull market that began after the 2008-09 financial crisis could potentially continue — barring unforeseen circumstances. The concerns we had at the time, ranging from the coming election year to the exit of the United Kingdom from the European Union, remain valid today. Of course, all these concerns have been overshadowed by COVID-19 and the unparalleled changes it has wrought on the global economy.

Today, more than six months into the pandemic’s onset, there are reasons for both optimism and caution. The effectiveness of the response to COVID-19 has varied significantly across nations, and the traditional winter season tends to see higher transmission rates. The response by the global pharma and biotech industry in vaccine development and testing — an effort which includes some of the fund’s holdings — has been unprecedented, and there is hope that this will result in both vaccines and treatments to come. We believe that while the pandemic has certainly impacted individual businesses in profound ways, it has also served to accelerate market and industry trends already in place, which makes our long-term perspective all the more important.

In the coming months, critical choices will chart our course forward. The stimulus initially approved by Congress in the spring served to dampen the blow to the economy, and the Federal Reserve continues to play a critical role in stabilizing markets. However, as of this writing, that stimulus has lapsed without further support in place, and it remains to be seen how the outcome of the presidential and Congressional elections will affect future economic efforts. Of course, the progress made in controlling and ultimately overcoming COVID-19 will have the most influence on the global economy over the next 12 months.

For investors, the exciting thing is that opportunities continue to arise. We are still able to find small companies around the world that we believe have the potential to disrupt old business models and chart new courses. We expect companies whose products and services have proven critical to the continual functioning of the economy will do well, and we continue to review other companies around the world for signs of future strength in a recovery.

Despite the pandemic, our investment professionals are meeting with more companies than ever, something that has become easier to do with the widespread adoption of virtual conferencing. Our fund’s managers certainly miss the human element of face-to-face meetings, and the opportunities to visit manufacturing plants, retail outlets and boardrooms around the world. Yet because of our organization’s scale, long relationships with management, and deep industry knowledge, we are finding that companies value meeting with our research analysts more than ever, even if only via virtual formats. Thus, we continue to do the deep, fundamental research that has been the foundation of the fund’s success over the decades.

We would also note that this fund is now managed by three independent investment groups within the Capital Group Companies, each with its own research analysts and portfolio managers. The success of these three groups in contributing to the fund’s return represents years of planning to build out research and asset management capacity, and is one of the ways the fund continues to plan for the future — and good stewardship of your investments.

Especially in times such as these, we believe our investment process will be the key to future success. We can expect markets to be volatile, but historically, there has been a recovery after a downturn. While we cannot say for certain that equities will continue to rise in value as they have in recent months, we firmly believe that a long-term perspective will reward patient investors, as it has for decades.

Finally, and as always, we thank you for the trust you’ve placed in the managers of SMALLCAP World Fund. We wish you and those close to you safety and good health, and look forward to reporting to you once again in six months.

Cordially,

Julian N. Abdey
Co-President

Jonathan Knowles
Co-President

Gregory W. Wendt
Co-President

November 10, 2020

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

SMALLCAP World Fund

The value of a long-term perspective

Fund results shown are for Class A shares and reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.¹ Thus, the net amount invested was $9,425. 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. Prices and returns will vary, so investors may lose money. For current information and month-end results, visit capitalgroup.com.

The results shown are before taxes on fund distributions and sale of fund shares.

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 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	Includes reinvested dividends and reinvested capital gain distributions.
³	The MSCI All Country World Small Cap Index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Results reflect dividends net of withholding taxes. Because the index was not in existence when the fund’s Class A shares were first sold, cumulative returns through May 31, 1994, reflect the returns of the S&P Developed <$1.2 Billion Index. MSCI source: MSCI. S&P source: S&P Dow Jones Indices LLC.
⁴	For the period April 30, 1990, commencement of operations, through September 30, 1990.

4	SMALLCAP World Fund

How a $10,000 investment has grown

This chart shows how a hypothetical $10,000 investment in SMALLCAP World Fund’s Class A shares grew from April 30, 1990 — the fund’s inception — through September 30, 2020, the end of the fund’s latest fiscal year. As you can see, the $10,000 would have grown to $170,496 even after deducting the maximum 5.75% sales charge.

SMALLCAP World Fund

Summary investment portfolio September 30, 2020

Industry sector diversification

Percent of net assets

Country diversification by domicile	Percent of net assets
United States		46.52	%
Eurozone*		8.34
United Kingdom		6.67
Japan		6.21
Sweden		5.10
China		4.84
India		3.47
Canada		2.20
Switzerland		2.11
Other countries		9.85
Short-term securities & other assets less liabilities		4.69

*	Countries using the euro as a common currency; those represented in the fund’s portfolio are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Slovenia and Spain.

Common stocks 94.00%	Shares		Value (000)
Information technology 23.77%
RingCentral, Inc., Class A¹		4,179,600	$	1,147,760
MongoDB, Inc., Class A¹		2,811,413		650,870
DocuSign, Inc.¹		1,863,229		401,041
Cree, Inc.¹		5,472,938		348,845
Smartsheet Inc., Class A^1,2		6,875,105		339,768
Net One Systems Co., Ltd.^2,3		6,879,958		313,706
SimCorp AS^2,3		2,186,750		287,448
Alteryx, Inc., Class A^1,4		2,359,300		267,899
Netcompany Group AS, non-registered shares^1,2,3		3,162,672		261,807
Inphi Corp.¹		2,218,942		249,076
Ceridian HCM Holding Inc.¹		2,851,343		235,664
Paycom Software, Inc.¹		737,569		229,605
Globant SA¹		1,239,031		222,059
TeamViewer AG^1,3		4,257,886		210,257
Sinch AB^1,3		2,319,680		189,006
EPAM Systems, Inc.¹		539,600		174,442
Carel Industries SpA^2,3		7,806,894		165,092
Other securities				7,305,141
				12,999,486

Health care 19.95%
Insulet Corp.¹		3,278,201		775,590
Molina Healthcare, Inc.¹		2,579,100		472,078
NovoCure Ltd.¹		3,783,697		421,163
Haemonetics Corp.^1,2		3,591,217		313,334
Allakos Inc.^1,2		3,822,533		311,345
Notre Dame Intermédica Participações SA		25,176,829		291,673
DexCom, Inc.¹		617,500		254,552
CanSino Biologics Inc., Class H^1,3,4		10,536,204		227,672
Centene Corp.¹		3,760,418		219,345
iRhythm Technologies, Inc.¹		795,280		189,364
Amplifon SpA^1,3		5,286,500		188,794
GW Pharmaceuticals PLC (ADR)^1,2,4		1,799,395		175,171
Ultragenyx Pharmaceutical Inc.¹		2,106,670		173,147
Mani, Inc.^2,3		6,234,882		169,994
Silk Road Medical, Inc.^1,2		2,483,600		166,923
Other securities				6,560,814
				10,910,959

6	SMALLCAP World Fund

	Shares		Value (000)
Consumer discretionary 17.47%
Evolution Gaming Group AB^2,3		9,884,330	$	653,356
TopBuild Corp.^1,2		2,361,400		403,067
Ocado Group PLC^1,3		10,398,813		367,493
Floor & Decor Holdings, Inc., Class A¹		4,356,200		325,844
Just Eat Takeaway (EUR denominated)^1,3		2,858,900		320,162
DraftKings Inc., Class A¹		3,089,512		181,787
DraftKings Inc., Class A^1,3,4,5		2,004,442		107,326
ASOS PLC^1,3		3,504,573		232,555
Dollarama Inc.		6,015,000		230,563
YETI Holdings, Inc.^1,2		4,995,963		226,417
Thor Industries, Inc.		2,315,800		220,603
IDP Education Ltd.^2,3		14,269,619		194,977
Five Below, Inc.¹		1,514,402		192,329
Wyndham Hotels & Resorts, Inc.		3,388,701		171,129
Arco Platform Ltd., Class A¹		4,166,715		170,169
Other securities				5,558,260
				9,556,037

Industrials 14.86%
IMCD NV^2,3		3,519,136		419,005
Nihon M&A Center Inc.³		6,242,180		356,060
NIBE Industrier AB, Class B^1,3		10,477,143		270,035
MonotaRO Co., Ltd.³		4,866,500		242,374
VAT Group AG³		1,199,946		229,399
Diploma PLC^2,3		7,705,790		217,621
BELIMO Holding AG³		27,704		209,230
Harmonic Drive Systems Inc.^3,4		3,096,400		199,246
Nolato AB, Class B^1,3		1,917,992		186,148
Spirax-Sarco Engineering PLC³		1,186,028		168,624
Boyd Group Services Inc.^2,4		1,077,671		166,456
Other securities				5,465,892
				8,130,090

Financials 7.27%
Cannae Holdings, Inc.^1,2		7,332,537		273,210
Kotak Mahindra Bank Ltd.^1,3		15,277,664		262,960
Trupanion, Inc.^1,2		2,795,507		220,565
Ares Management Corp., Class A		5,174,776		209,164
RenaissanceRe Holdings Ltd.		1,058,600		179,687
Other securities				2,832,644
				3,978,230

Consumer staples 3.55%
Emmi AG^2,3		317,072		315,972
Grocery Outlet Holding Corp.^1,2		4,623,182		181,783
Raia Drogasil SA, ordinary nominative		39,521,460		164,816
Other securities				1,276,443
				1,939,014

Communication services 2.84%
Bandwidth Inc., Class A¹		1,311,400		228,931
Iridium Communications Inc.^1,2		6,958,927		178,010
Iridium Communications Inc.^1,2,5		636,132		16,272
New York Times Co., Class A		3,865,100		165,388
Other securities				966,771
				1,555,372

Other 4.29%
Other securities				2,350,344

Total common stocks (cost: $29,818,721,000)				51,419,532

Preferred securities 1.07%
Health care 0.32%
Sartorius AG, nonvoting preferred, non-registered shares³		395,000		162,263
Other securities				12,347
				174,610

SMALLCAP World Fund

Preferred securities (continued)	Shares		Value (000)
Other 0.75%
Other securities			$	408,902

Total preferred securities (cost: $406,851,000)				583,512

Rights & warrants 0.00%
Other 0.00%
Other securities				1,212

Total rights & warrants (cost: $79,000)				1,212

Convertible stocks 0.20%
Other 0.20%
Other securities				110,231

Total convertible stocks (cost: $128,264,000)				110,231

Convertible bonds & notes 0.03%	Principal amount (000)
Health care 0.03%
Other securities				15,000

Total convertible bonds & notes (cost: $15,000,000)				15,000

Bonds, notes & other debt instruments 0.01%
Corporate bonds, notes & loans 0.01%
Other securities				5,033

Total bonds, notes & other debt instruments (cost: $6,791,000)				5,033

Short-term securities 5.64%		Shares
Money market investments 3.55%
Capital Group Central Cash Fund 0.12%^2,6		15,196,924		1,519,845
BlackRock Liquidity Funds – FedFund, Institutional Shares 0%^6,7		160,000,000		160,000
Goldman Sachs Financial Square Government Fund, Institutional Shares 0%^6,7		150,000,000		150,000
RBC Funds Trust – U.S. Government Money Market Fund, RBC Institutional Class 1 0.03%^6,7		44,500,000		44,500
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03%^6,7		30,000,000		30,000
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 0.02%^6,7		23,554,321		23,554
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 0.02%^6,7		15,000,000		15,000
Fidelity Investments Money Market Government Portfolio, Class I 0.01%^6,7		1,000,000		1,000
				1,943,899

	Principal amount (000)
Commercial paper 2.09%
BNG Bank NV 0.15% due 11/24/2020⁵	$	200,000		199,953
KfW 0.13% due 10/27/2020⁵		200,000		199,985
Toronto-Dominion Bank 0.13% due 10/28/2020⁵		300,000		299,974
Other securities				442,985
				1,142,897

Total short-term securities (cost: $3,086,492,000)				3,086,796
Total investment securities 100.95% (cost: $33,462,198,000)				55,221,316
Other assets less liabilities (0.95)%				(522,118	)

Net assets 100.00%			$	54,699,198

8	SMALLCAP World Fund

This 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.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Investments in affiliates²

	Value of affiliates at 10/1/2019 (000)		Additions (000)		Reductions (000)		Net realized (loss) gain (000)			Net unrealized appreciation (depreciation) (000)			Value of affiliates at 9/30/2020 (000)		Dividend income (000)
Common stocks 21.27%
Information technology 4.69%
Smartsheet Inc., Class A¹	$	140,697	$	152,436	$	23,810	$	(1,427	)	$	71,872		$	339,768	$	—
Net One Systems Co., Ltd.³		139,958		31,252		—		—			142,496			313,706		3,098
SimCorp AS³		193,109		19,196		18,582		(923	)		94,648			287,448		2,530
Netcompany Group AS, non-registered shares^1,3		127,624		10,330		16,005		4,994			134,864			261,807		—
Carel Industries SpA³		115,760		2,736		3,958		1,064			49,490			165,092		1,074
SHIFT Inc.^1,3		—		63,654		4,923		3,147			87,641			149,519		—
CANCOM SE, non-registered shares³		107,346		55,249		5,071		(1,056	)		(7,635	)		148,833		1,617
Bottomline Technologies, Inc.¹		104,199		35,943		4		—			6,254			146,392		—
Fortnox AB³		76,372		12,685		6,684		(805	)		62,280			143,848		240
Megaport Ltd.^1,3		66,096		24,975		19,428		3,797			64,232			139,672		—
Yext, Inc.¹		137,628		—		25,070		(7,462	)		2,014			107,110		—
Network International Holdings PLC^1,3		225,968		23,767		40,889		(22,817	)		(83,072	)		102,957		—
GB Group PLC^1,3		—		94,714		—		—			1,445			96,159		—
eMemory Technology Inc.³		42,488		—		—		—			28,865			71,353		955
Unifiedpost Group SA^1,3		—		47,062		—		—			4,502			51,564		—
LPKF Laser & Electronics AG, non-registered shares³		—		35,995		—		—			6,526			42,521		—
Accesso Technology Group PLC^1,3,8		23,271		159		4,672		(19,277	)		519			—		—
Alarm.Com Holdings, Inc.^1,8		117,565		28,878		98,258		29,174			7,008			—		—
Bravura Solutions Ltd.^3,8		53,441		—		58,887		21,512			(16,066	)		—		686
Cardtronics PLC, Class A^1,8		38,556		39,346		50,060		(25,008	)		(2,834	)		—		—
Cree, Inc.^1,8		219,722		48,951		3,217		(580	)		83,969			—		—
Douzone Bizon Co., Ltd.^3,8		110,174		—		46,688		20,787			40,804			—		815
Endurance International Group Holdings, Inc.^1,8		36,403		—		26,307		(53,649	)		43,553			—		—
Faraday Technology Corp.^1,3,8		28,513		—		21,387		(7,411	)		285			—		—
Humanica PCL⁸		11,797		—		11,176		(3,843	)		3,222			—		—
Jenoptik AG^3,8		113,051		—		109,080		(52,620	)		48,649			—		—
Sansan, Inc.^1,3,8		60,328		—		64,006		(6,938	)		10,616			—		—
SUNeVision Holdings Ltd.^3,8		95,862		—		87,605		31,624			(39,881	)		—		2,685
Tri Chemical Laboratories Inc.^3,8		—		32,556		33,963		1,407			—			—		234
														2,567,749
Health care 4.56%
Haemonetics Corp.¹		249,000		160,251		6		—			(95,911	)		313,334		—
Allakos Inc.¹		303,509		4,150		6,886		(740	)		11,312			311,345		—
GW Pharmaceuticals PLC (ADR)^1,4		220,322		54,466		66,655		(11,217	)		(21,745	)		175,171		—
Mani, Inc.³		128,480		44,862		15,400		1,715			10,337			169,994		1,278
Silk Road Medical, Inc.¹		—		104,685		16		—			62,254			166,923		—
GVS SpA^1,3		—		153,192		37,598		—			44,827			160,421		—
Fagron NV³		46,615		67,067		—		—			24,448			138,130		419
Pacific Biosciences of California, Inc.¹		—		63,918		—		—			71,251			135,169		—
Health Catalyst, Inc.^1,4		18,864		78,336		1		—			23,425			120,624		—
Cortexyme, Inc.^1,4		12,768		26,528		—		—			78,373			117,669		—
Cortexyme, Inc.^1,3,5		38,126		—		15,000		—			(23,126	)		—		—
Metropolis Healthcare Ltd.³		50,456		19,829		5,404		2,199			27,212			94,292		315

SMALLCAP World Fund

Investments in affiliates²(continued)

	Value of affiliates at 10/1/2019 (000)		Additions (000)		Reductions (000)		Net realized (loss) gain (000)			Net unrealized appreciation (depreciation) (000)			Value of affiliates at 9/30/2020 (000)		Dividend income (000)
Applied Molecular Transport Inc.^1,4	$	—	$	38,724	$	—	$	—		$	41,527		$	80,251	$	—
Adaptimmune Therapeutics PLC (ADR)¹		11,204		7,779		—		—			55,422			74,405		—
New Frontier Health Corp., Class A^1,5		—		93,132		—		—			(22,072	)		71,060		—
Revenio Group Oyj, non-registered shares³		36,239		—		7,642		1,618			33,475			63,690		475
Cellectis SA (ADR)^1,4		15,909		10,842		1		—			14,215			40,965		—
Cellectis SA, non-registered shares^1,3		12,154		—		—		—			9,724			21,878		—
CellaVision AB, non-registered shares^1,3		47,319		10,946		—		—			3,877			62,142		—
Autolus Therapeutics PLC (ADR)¹		29,531		20,225		—		—			(1,118	)		48,638		—
Flexion Therapeutics, Inc.¹		34,409		12,823		—		—			(7,435	)		39,797		—
Precision BioSciences, Inc.^1,4		5,244		46,553		6		—			(26,769	)		25,022		—
Xenon Pharmaceuticals Inc.¹		18,193		—		—		—			4,160			22,353		—
WIN-Partners Co., Ltd.³		19,029		1,525		—		—			(1,132	)		19,422		592
NuCana PLC (ADR)^1,4		18,642		4,906		—		—			(4,600	)		18,948		—
Neovasc Inc.¹		2,219		1,616		—		—			(1,359	)		2,476		—
CanSino Biologics Inc., Class H^1,3,4,8		44,195		7,446		8,379		7,065			177,345			—		—
Clovis Oncology, Inc.^1,8		13,999		—		16,013		(62,752	)		64,766			—		—
CONMED Corp.⁸		217,151		7,791		150,856		42,390			(73,837	)		—		855
Corindus Vascular Robotics, Inc.^1,8		46,535		—		46,399		31,399			(31,535	)		—		—
CryoLife, Inc.^1,8		30,568		41,954		38,263		(14,771	)		(10,600	)		—		—
Diplomat Pharmacy, Inc.^1,8		21,239		—		16,392		(69,631	)		64,784			—		—
Insulet Corp.^1,8		734,931		—		219,913		123,031			137,541			—		—
iRhythm Technologies, Inc.^1,8		107,937		18,511		99,665		57,197			105,384			—		—
Nakanishi Inc.^3,8		83,992		—		37,030		(6,711	)		8,509			—		1,361
Natera, Inc.^1,8		156,475		—		106,335		36,720			16,371			—		—
Neuronetics, Inc.^1,8		12,168		—		5,618		(24,130	)		17,580			—		—
Osstem Implant Co., Ltd.^1,8		39,543		—		34,157		(29,371	)		23,985			—		—
Revance Therapeutics, Inc.^1,8		26,130		19,942		5		—			36,691			—		—
Rubius Therapeutics, Inc.^1,4,8		27,309		27,234		26,133		(55,612	)		34,884			—		—
														2,494,119
Consumer discretionary 4.72%
Evolution Gaming Group AB³		175,780		93,417		95,970		41,002			439,127			653,356		4,665
TopBuild Corp.¹		171,993		85,396		21,573		15,566			151,685			403,067		—
YETI Holdings, Inc.¹		32,262		115,062		4,992		1,309			82,776			226,417		—
IDP Education Ltd.³		24,854		122,305		—		—			47,818			194,977		354
Shop Apotheke Europe NV, non-registered shares^1,3,4		31,274		4,265		—		—			116,935			152,474		—
Strategic Education, Inc.		117,400		84,069		—		—			(63,441	)		138,028		2,598
Trainline PLC^1,3		171,824		55,992		80,097		(5,493	)		(10,059	)		132,167		—
Domino’s Pizza Group PLC³		85,586		10,561		15,462		(2,705	)		46,814			124,794		1,936
BHG Group AB^1,3,4,9		14,380		34,450		—		—			71,768			120,598		—
zooplus AG, non-registered shares^1,3		60,188		7,901		—		—			38,184			106,273		—
AcadeMedia AB³		22,953		13,425		—		—			28,724			65,102		1,000
Musti Group Oyj^1,3		—		22,645		—		—			31,830			54,475		—
Bajaj Electricals Ltd.^1,3		—		34,277		—		—			12,591			46,868		—
Cairn Homes PLC^1,3		16,883		67,694		23,313		(6,255	)		(8,945	)		46,064		—
Everi Holdings Inc.¹		9,306		12,641		—		—			17,581			39,528		—
GoCo Group PLC³		10,565		14,159		—		—			6,245			30,969		230
OneSpaWorld Holdings Ltd.		—		39,889		6		—			(15,382	)		24,501		—
Beazer Homes USA, Inc.¹		24,731		—	��	—		—			(2,821	)		21,910		—
BNN Technology PLC^1,3,8,10		1,019		—		—		—			(1,019	)		—		—
Del Taco Restaurants, Inc.^1,8		30,053		—		11,656		(6,092	)		(512	)		—		—

10	SMALLCAP World Fund

	Value of affiliates at 10/1/2019 (000)		Additions (000)		Reductions (000)		Net realized (loss) gain (000)			Net unrealized appreciation (depreciation) (000)			Value of affiliates at 9/30/2020 (000)		Dividend income (000)
Delta Corp Ltd.^3,8	$	33,419	$	11,100	$	23,815	$	(45,746	)	$	25,042		$	—	$	304
Dine Brands Global, Inc.⁸		46,699		19,963		33,339		(31,495	)		(1,828	)		—		967
frontdoor, inc.^1,8		212,688		25,590		29,006		(8,522	)		(41,336	)		—		—
Hostelworld Group PLC⁸		9,105		—		8,547		(8,602	)		8,044			—		—
Hoteles City Express, SAB de CV^1,8		19,018		—		15,193		(9,896	)		6,071			—		—
Lands’ End, Inc.^1,8		24,959		412		15,648		(47,323	)		37,600			—		—
Luckin Coffee Inc., Class A (ADR)^1,8		91,883		5,086		35,629		(65,270	)		3,930			—		—
MIPS AB^3,8		23,695		—		4,974		2,702			31,861			—		365
Party City Holdco Inc.^1,8		42,765		—		19,122		(56,244	)		32,601			—		—
Thor Industries, Inc.⁸		66,269		106,142		60,416		18,925			89,683			—		3,656
Tile Shop Holdings, Inc.^1,8		10,074		—		4,405		(20,659	)		14,990			—		—
														2,581,568
Industrials 3.10%
IMCD NV³		246,432		26,685		6,867		1,123			151,632			419,005		3,358
Diploma PLC³		116,060		49,456		1,191		(22	)		53,318			217,621		1,502
Boyd Group Services Inc.⁴		126,034		58,975		38,101		(3,835	)		23,383			166,456		433
Meggitt PLC^1,3		127,786		184,825		56,579		(48,439	)		(60,230	)		147,363		—
Avon Rubber PLC³		50,717		—		2,926		1,105			81,707			130,603		712
Arcosa, Inc.		—		103,501		5		—			4,756			108,252		169
Japan Elevator Service Holdings Co., Ltd.³		10,806		59,533		—		—			27,605			97,944		341
Matson, Inc.		57,353		28,076		3,172		556			4,343			87,156		1,757
Bingo Industries Ltd.³		56,048		15,291		—		—			14,039			85,378		1,087
Alfen NV^1,3		17,844		—		—		—			63,289			81,133		—
Instalco AB³		39,314		1,928		15,155		8,283			37,057			71,427		898
Grace Technology, Inc.^3,4		—		42,691		—		—			8,290			50,981		—
Barrett Business Services, Inc.		52,404		—		9,479		(4,580	)		(16,687	)		21,658		655
Greaves Cotton Ltd.^1,3		33,386		—		3,677		(3,482	)		(12,936	)		13,291		—
BELIMO Holding AG^3,8		183,301		—		41,119		8,252			58,796			—		4,693
BeNEXT Group Inc.^3,8,9		34,421		—		20,577		(23,575	)		9,731			—		393
Bravida Holding AB^1,3,8		141,868		—		88,744		23,979			1,323			—		—
Continental Building Products, Inc.^1,8		75,885		—		100,404		58,478			(33,959	)		—		—
Coor Service Management Holding AB^1,3,8		50,879		4,705		21,264		(4,136	)		(9,801	)		—		—
J. Kumar Infraprojects Ltd.^3,8		8,142		—		9,175		(4,196	)		5,229			—		—
Rexnord Corp.⁸		154,401		2,841		20,455		(8,041	)		15,322			—		1,229
TechnoPro Holdings, Inc.^3,8		110,900		—		46,345		8,093			(16,753	)		—		1,933
Tsubaki Nakashima Co., Ltd.^3,8		43,670		—		38,693		(17,760	)		12,783			—		627
Upwork Inc.^1,8		37,201		38,190		44,120		(4,099	)		37,024			—		—
VARTA AG, non-registered shares^1,3,4,8		245,960		27,573		224,249		142,976			(96,107	)		—		—
														1,698,268
Financials 1.50%
Cannae Holdings, Inc.¹		141,129		76,197		—		—			55,884			273,210		—
Trupanion, Inc.¹		68,357		11,678		6,353		4,877			142,006			220,565		—
Aavas Financiers Ltd.^1,3		—		114,533		—		—			(19,289	)		95,244		—
Nuvei Corp., subordinate voting shares¹		—		51,396		—		—			32,064			83,460		—
Uzabase, Inc.^1,3		27,002		10,397		—		—			32,105			69,504		—
Seacoast Banking Corp. of Florida¹		76,737		13,517		—		—			(25,672	)		64,582		—
Greenhill & Co., Inc.		15,346		—		—		—			(2,070	)		13,276		234
HUB24 Ltd.^3,8		37,195		—		25,419		(18,265	)		6,489			—		—
														819,841

SMALLCAP World Fund

Investments in affiliates²(continued)

	Value of affiliates at 10/1/2019 (000)		Additions (000)		Reductions (000)		Net realized (loss) gain (000)			Net unrealized appreciation (depreciation) (000)			Value of affiliates at 9/30/2020 (000)		Dividend income (000)
Consumer staples 1.24%
Emmi AG³	$	258,601	$	—	$	—	$	—		$	57,371		$	315,972	$	3,896
Grocery Outlet Holding Corp.¹		49,131		126,518		24,099		4,098			26,135			181,783		—
Simply Good Foods Co., Class A¹		80,824		92,392		4		—			(26,557	)		146,655		—
Hotel Chocolat Group plc^3,4		16,824		20,922		—		—			(3,452	)		34,294		116
CCL Products (India) Ltd.^3,8		35,935		—		30,242		(3,101	)		(2,592	)		—		—
Primo Water Operations Inc.^1,8		38,357		—		46,293		1,090			6,846			—		—
R.E.A. Holdings PLC^1,3,8		4,094		—		722		(9,407	)		6,035			—		—
TCI Co., Ltd.^1,3,8		66,608		—		52,248		(22,159	)		7,799			—		—
														678,704
Communication services 0.42%
Iridium Communications Inc.¹		144,745		8,365		6,881		1,863			29,918			178,010		—
Iridium Communications Inc.^1,5		13,537		—		—		—			2,735			16,272		—
Kamakura Shinsho, Ltd.³		29,224		1,454		—		—			(10,403	)		20,275		59
Pebble Group PLC/The^1,3		—		18,783		—		—			(5,214	)		13,569		—
														228,126
Materials 0.39%
Navin Fluorine International Ltd.³		33,148		6,078		—		—			65,887			105,113		511
JCU Corp.³		33,951		12,393		10,850		1,368			23,271			60,133		907
Aluflexpack AG^1,3		10,932		8,033		—		—			4,963			23,928		—
Venator Materials PLC¹		3,538		12,659		—		—			(1,002	)		15,195		—
Excelsior Mining Corp.¹		10,198		—		—		—			(3,626	)		6,572		—
Allegheny Technologies Inc.^1,8		204,264		9,745		96,582		(142,162	)		35,436			—		—
Loma Negra Compania Industrial Argentina SA (ADR)^1,8		40,885		—		13,921		(31,008	)		19,370			—		—
Mayur Uniquoters Ltd.^3,8		7,192		—		6,923		(11,404	)		11,135			—		26
Nevada Copper Corp.^1,8		8,175		—		132		(207	)		(3,659	)		—		—
														210,941
Real estate 0.63%
Altus Group Ltd.		90,888		11,132		4,328		(183	)		37,014			134,523		1,431
WHA Corp. PCL³		116,929		21,075		16,633		5,286			(51,465	)		75,192		3,297
JHSF Participações SA		—		47,739		—		—			2,164			49,903		686
K-Fast Holding AB, Class B^1,3		—		32,380		—		—			10,750			43,130		—
Cyrela Commercial Properties SA, ordinary nominative		—		40,875		519		(551	)		(20,645	)		19,160		75
Mitre Realty Empreendimentos E Participações SA¹		—		28,487		—		—			(13,965	)		14,522		—
Foxtons Group PLC^1,3		10,993		—		—		—			(2,461	)		8,532		—
														344,962
Energy 0.02%
Savannah Energy PLC^1,3		14,751		2,420		—		—			(8,412	)		8,759		—
Nine Energy Service, Inc.^1,8		15,135		—		3,823		(55,043	)		43,731			—		—
NuVista Energy Ltd.^1,8		29,885		—		5,195		(38,794	)		16,971			—		—
														8,759
Utilities 0.00%
Mytrah Energy Ltd.^1,3,10		128		—		—		—			7			135		—
Total common stocks														11,633,172
Preferred securities 0.28%
Information technology 0.19%
Avidxchange, Inc., Series F, preferred shares^1,3,10,11		—		105,844		—		—			—			105,844		—
Consumer discretionary 0.09%
Made.com Design Ltd., Series C-4, preferred shares^1,3,10,11		39,793		—		—		—			6,744			46,537		—

12	SMALLCAP World Fund

	Value of affiliates at 10/1/2019 (000)		Additions (000)		Reductions (000)		Net realized (loss) gain (000)			Net unrealized appreciation (depreciation) (000)			Value of affiliates at 9/30/2020 (000)		Dividend income (000)
Consumer staples 0.00%
R.E.A. Holdings PLC 9.00% cumulative, preferred shares^1,8	$	85	$	—	$	67	$	(117	)	$	99		$	—	$	—
Total preferred securities														152,381
Rights & warrants 0.00%
Health care 0.00%
Neovasc Inc., warrants, expire 2025^1,3		—		73		—		—			(26	)		47		—
Convertible stocks 0.02%
Information technology 0.02%
RealSelf, Inc., Series C, convertible preferred shares^1,3,10,11		24,317		—		—		—			(10,372	)		13,945		—
Short-term securities 2.78%
Money market investments 2.78%
Capital Group Central Cash Fund 0.12%⁶		2,715,579		5,305,907		6,502,026		75			310			1,519,845		32,140
Total 24.35%							$	(475,773	)	$	3,760,774		$	13,319,390	$	98,469

See page 14 for footnotes.

SMALLCAP World Fund

¹	Security did not produce income during the last 12 months.
²	Affiliate of the fund or part of the same group of investment companies as the fund, in each case as defined under the Investment Company Act of 1940.
³	Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Other securities,” was $23,233,255,000, which represented 42.47% of the net assets of the fund. This amount includes $22,325,227,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
⁴	All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,“ was $873,083,000, which represented 1.60% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
⁵	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 $1,366,154,000, which represented 2.50% of the net assets of the fund.
⁶	Rate represents the seven-day yield at 9/30/2020.
⁷	Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
⁸	Unaffiliated issuer at 9/30/2020.
⁹	This security changed its name during the reporting period.
¹⁰	Value determined using significant unobservable inputs.
¹¹	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.

Private placement securities	Acquisition date(s)	Cost (000)		Value (000)		Percent of net assets
Avidxchange, Inc., Series F, preferred shares	12/26/2019	$	105,844	$	105,844		.19	%
Made.com Design Ltd., Series C-4, preferred shares	3/2/2018		41,328		46,537		.08
RealSelf, Inc., Series C, convertible preferred shares	4/18/2018		19,000		13,945		.03
Other private placement securities	12/3/2013-9/16/2020		387,834		529,649		.97
Total private placement securities		$	554,006	$	695,975		1.27	%

Key to abbreviations

ADR = American Depositary Receipts

EUR = Euros

See notes to financial statements.

14	SMALLCAP World Fund

Financial statements

Statement of assets and liabilities
at September 30, 2020

(dollars in thousands)

Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $24,195,435)	$	41,901,926
Affiliated issuers (cost: $9,266,763)		13,319,390	$	55,221,316
Cash				4,338
Cash denominated in currencies other than U.S. dollars (cost: $15,891)				15,904
Receivables for:
Sales of investments		95,792
Sales of fund’s shares		50,743
Dividends and interest		26,378
Securities lending income		3,982
Other		1		176,896
				55,418,454
Liabilities:
Collateral for securities on loan				424,054
Payables for:
Purchases of investments		158,721
Repurchases of fund’s shares		79,299
Investment advisory services		26,908
Services provided by related parties		12,019
Directors’ deferred compensation		4,440
Other		13,815		295,202
Net assets at September 30, 2020			$	54,699,198

Net assets consist of:
Capital paid in on shares of capital stock			$	32,839,749
Total distributable earnings				21,859,449
Net assets at September 30, 2020			$	54,699,198

(dollars and shares in thousands, except per-share amounts)

Total authorized capital stock — 2,000,000 shares,
$.01 par value (822,556 total shares outstanding)

	Net assets		Shares outstanding			Net asset value per share
Class A	$	27,780,562		419,470		$	66.23
Class C		574,805		10,257			56.04
Class T		14		—	*		66.78
Class F-1		731,522		11,201			65.31
Class F-2		6,607,697		97,621			67.69
Class F-3		3,065,332		45,629			67.18
Class 529-A		1,662,176		25,457			65.29
Class 529-C		85,626		1,498			57.17
Class 529-E		62,462		993			62.89
Class 529-T		16		—	*		66.67
Class 529-F-1		181,090		2,721			66.57
Class R-1		27,804		479			58.09
Class R-2		587,859		10,108			58.16
Class R-2E		35,281		544			64.83
Class R-3		805,651		12,853			62.68
Class R-4		834,678		12,709			65.68
Class R-5E		84,103		1,262			66.64
Class R-5		406,372		5,902			68.86
Class R-6		11,166,148		163,852			68.15

*	Amount less than one thousand.

See notes to financial statements.

SMALLCAP World Fund

Statement of operations
for the year ended September 30, 2020

(dollars in thousands)

Investment income:
Income:
Dividends (net of non-U.S. taxes of $19,540; also includes $98,469 from affiliates)	$	337,920
Securities lending income (net of fees)		42,388
Interest (net of non-U.S. taxes of $100)		3,375		$	383,683
*Fees and expenses:**
Investment advisory services		290,494
Distribution services		85,243
Transfer agent services		49,699
Administrative services		14,212
Reports to shareholders		2,107
Registration statement and prospectus		1,390
Directors’ compensation		1,125
Auditing and legal		465
Custodian		6,424
State and local taxes		1
Other		1,985			453,145
Net investment loss					(69,462	)

Net realized gain and unrealized appreciation:
Net realized gain (loss) on:
Investments (net of non-U.S. taxes of $88):
Unaffiliated issuers		1,074,157
Affiliated issuers		(475,773	)
Currency transactions		470			598,854
Net unrealized appreciation (depreciation) on:
Investments (net of non-U.S. taxes of $11,290):
Unaffiliated issuers		6,680,890
Affiliated issuers		3,760,774
Currency translations		(2,350	)		10,439,314
Net realized gain and unrealized appreciation					11,038,168
Net increase in net assets resulting from operations				$	10,968,706

*	Additional information related to class-specific fees and expenses is included in the notes to financial statements.

Statements of changes in net assets
	(dollars in thousands)

	Year ended September 30,
	2020			2019
Operations:
Net investment (loss) income	$	(69,462	)	$	71,642
Net realized gain		598,854			1,673,682
Net unrealized appreciation (depreciation)		10,439,314			(2,329,202	)
Net increase (decrease) in net assets resulting from operations		10,968,706			(583,878	)

Distributions paid to shareholders		(1,983,014	)		(2,434,865	)

Net capital share transactions		1,758,107			3,097,094

Total increase in net assets		10,743,799			78,351

Net assets:
Beginning of year		43,955,399			43,877,048
End of year	$	54,699,198		$	43,955,399

See notes to financial statements.

16	SMALLCAP World Fund

Notes to financial statements

1. Organization

SMALLCAP World Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide long-term growth of capital. Shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in the next year; however, the fund reserves the right to delay the implementation.

The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, 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 described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%¹	None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge)	None
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years²
Class 529-C	None	1% for redemptions within one year of purchase	Class 529-C converts to Class 529-A after 10 years³
Class 529-E	None	None	None
Classes T and 529-T⁴	Up to 2.50%	None	None
Classes F-1, F-2, F-3 and 529-F-1	None	None	None
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6	None	None	None

¹	Up to 3.50% for Class 529-A shares purchased on or after June 30, 2020.
²	Effective June 30, 2020, Class C converts to Class A after 8 years.
³	Effective June 30, 2020, Class 529-C converts to Class 529-A after 5 years.
⁴	Class T and 529-T shares are not available for purchase.

Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative 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 share class.

2. Significant accounting policies

The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, 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), realized gains and losses and unrealized appreciation and depreciation are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.

SMALLCAP World Fund

Distributions paid to shareholders — Income dividends and capital gain distributions 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. 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 in the fund’s statement of operations. 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 U.S. GAAP. 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, 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 & loans; convertible securities		Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies		Standard inputs and interest rate volatilities

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not 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 for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.

18	SMALLCAP World Fund

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 valuation guidelines adopted by authority of the fund’s board of directors as further described. 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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. 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 directors 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 directors. 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. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. 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 table on the following page presents the fund’s valuation levels as of September 30, 2020 (dollars in thousands):

SMALLCAP World Fund

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Common stocks:
Information technology	$	7,871,865	$	5,102,303	$	25,318	$	12,999,486
Health care		7,627,029		3,088,443		195,487		10,910,959
Consumer discretionary		4,813,077		4,739,384		3,576		9,556,037
Industrials		2,813,917		5,316,173		—		8,130,090
Financials		2,616,168		1,351,932		10,130		3,978,230
Consumer staples		763,626		1,175,388		—		1,939,014
Communication services		1,059,438		495,934		—		1,555,372
Other		1,239,709		1,094,557		16,078		2,350,344
Preferred securities		91,403		162,263		329,846		583,512
Rights & warrants		—		626		586		1,212
Convertible stocks		—		—		110,231		110,231
Convertible bonds & notes		—		—		15,000		15,000
Bonds, notes & other debt instruments		—		5,033		—		5,033
Short-term securities		1,943,899		1,142,897		—		3,086,796
Total	$	30,840,131	$	23,674,933	$	706,252	$	55,221,316

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the year ended September 30, 2020 (dollars in thousands):

	Beginning value at 10/1/2019		Transfers into Level 3*		Purchases		Sales			Net realized loss^†			Unrealized appreciation^†		Transfers out of Level 3*			Ending value at 9/30/2020
Investment securities	$	266,785	$	3,643	$	449,978	$	(57,545	)	$	(24,646	)	$	190,801	$	(122,764	)	$	706,252
Net unrealized appreciation during the period on Level 3 investment securities held at September 30, 2020																		$	126,293

*	Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. These transfers are the result of changes in the availability of pricing sources and/or in the observability of significant inputs used in valuing the securities.
^†	Net realized loss and unrealized appreciation are included in the related amounts on investments in the statement of operations.

20	SMALLCAP World Fund

Unobservable inputs — Valuation of the fund’s Level 3 securities is 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 following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):

Value at
9/30/2020

Valuation
techniques

Unobservable
inputs

Range
(if applicable)

Weighted
average

Impact to
valuation from
an increase in
input*

Liquidation value

De minimis

N/A

Preferred share transaction price

N/A

Preferred share original issue price

N/A

Transaction price

N/A

Recent market information

Grey market

N/A

DLOM

Decrease

Common stocks

250,589

Expected proceeds

Discount rate

10%

Decrease

Expected proceeds

N/A

DLOM

15%

Decrease

Market comparables

Price/Cash flow multiple

8.7x

Increase

Price/Sales multiple

3.0x

Increase

DLOM

24% - 25%

25%

Decrease

$ per one billion Btu

$2.25

Increase

MMTPA

10 MMTPA

Increase

Transaction price

N/A

Inputs to market comparables and discounted cash flow

Weight ascribed to market comparables

67%

N/A

Weight ascribed to discounted cash flow

33%

N/A

Market comparables

DLOM

21%

Decrease

Preferred securities

329,846

EV/Sales multiple

4.1x - 12.1x

6.5x

Increase

Market comparables discount

20%

Decrease

Revenue growth rate

90%

Increase

Discounted cash flow

DLOM

21%

Decrease

Revenue CAGR

21%

Increase

WACC

10.5%

Decrease

Rights & warrants

586

Black-Scholes

Underlying share price

2.99

Increase

Implied volatility

30%

Increase

Transaction price

N/A

Market comparables

EV/Sales multiple

16.2x - 24.4x

22.4x

Increase

Convertible securities

125,231

Adjustment based on market movement increase

13%

Increase

DLOM

20%

Decrease

Discount to revenue

50%

Decrease

Market comparables discount

10%

Decrease

Total

706,252

This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

Key to abbreviations

Btu = British thermal unit

CAGR = Compound annual growth rate

DLOM = Discount for lack of marketability

EV = Enterprise value

MMTPA = Million metric tonnes per annum

WACC = Weighted average cost of capital

SMALLCAP World Fund

4. Risk factors

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

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.

Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies, particularly during times of market turmoil.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. 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. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. 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 accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

22	SMALLCAP World Fund

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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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

Securities lending — The fund has entered into securities lending transactions in which the fund earns income by lending investment securities to brokers, dealers or other institutions. Each transaction involves three parties: the fund, acting as the lender of the securities, a borrower, and a lending agent that acts as an intermediary.

Securities lending transactions are entered into by the fund under a securities lending agent agreement with the lending agent. The lending agent facilitates the exchange of securities between the fund and approved borrowers, ensures that securities loans are properly coordinated and documented, marks-to-market the value of collateral daily, secures additional collateral from a borrower if it falls below preset terms, and may reinvest cash collateral on behalf of the fund according to agreed parameters. The lending agent provides indemnification to the fund against losses resulting from a borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a potential loss of income or value if a borrower fails to return securities, collateral investments decline in value or the lending agent fails to perform.

The borrower is required to post highly liquid assets, such as cash or U.S. government securities, as collateral for the loan in an amount at least equal to the value of the securities loaned. Investments made with cash collateral are recognized as assets in the fund’s investment portfolio. The same amount is recorded as a liability in the fund’s statement of assets and liabilities. While securities are on loan, the fund will continue to receive the equivalent of the interest, dividends or other distributions paid by the issuer, as well as a portion of the interest on the investment of the collateral. Additionally, although the fund does not have the right to vote on securities while they are on loan, the fund has a right to consent on corporate actions and a right to recall loaned securities to vote. A borrower is obligated to return loaned securities at the conclusion of a loan or, during the pendency of a loan, on demand from the fund.

As of September 30, 2020, the total value of securities on loan was $873,083,000, and the total value of collateral received was $913,274,000. Collateral received includes cash of $424,054,000 and U.S. government securities of $489,220,000. Investment securities purchased from cash collateral are disclosed in the investment portfolio as short-term securities. Securities received as collateral, if any, are not recognized as fund assets. The contractual maturity of cash collateral received under the securities lending agreement is classified as overnight and continuous.

Collateral — The fund receives highly liquid assets, such as cash or U.S. government securities, as collateral in exchange for lending investment securities. The purpose of the collateral is to cover potential losses that could occur in the event the borrower cannot meet its contractual obligation. The lending agent may reinvest cash collateral from securities lending transactions according to agreed parameters. Cash collateral reinvested by the lending agent, if any, is disclosed in the fund’s summary investment portfolio.

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 year ended September 30, 2020, 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 significant interest or penalties.

The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S.

SMALLCAP World Fund

taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

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 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. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

During the year ended September 30, 2020, the fund reclassified $25,051,000 from total distributable earnings to capital paid in on shares of capital stock to align financial reporting with tax reporting.

As of September 30, 2020, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

Late year loss deferral*	$	(79,440	)
Undistributed long-term capital gains		899,759
Post-October capital loss deferral*		(599,764	)
Gross unrealized appreciation on investments		23,185,910
Gross unrealized depreciation on investments		(1,530,805	)
Net unrealized appreciation on investments		21,655,105
Cost of investments		33,566,211

*	These deferrals are considered incurred in the subsequent year.

Tax-basis distributions paid to shareholders from long-term capital gains were as follows (dollars in thousands):

	Year ended September 30
Share class	2020		2019
Class A	$	1,041,215	$	1,312,888
Class C		33,474		48,829
Class T		1		1
Class F-1		31,740		41,462
Class F-2		220,843		255,099
Class F-3		99,063		101,976
Class 529-A		60,724		78,608
Class 529-C		9,039		13,747
Class 529-E		2,675		3,645
Class 529-T		1		1
Class 529-F-1		6,564		8,185
Class R-1		1,181		1,729
Class R-2		26,644		36,397
Class R-2E		1,329		1,360
Class R-3		34,779		47,684
Class R-4		34,471		48,314
Class R-5E		2,101		1,677
Class R-5		16,041		22,369
Class R-6		361,129		410,894
Total	$	1,983,014	$	2,434,865

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. CRMC, AFD and AFS are considered related parties to the fund.

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 0.800% on the first $1 billion of daily net assets

24	SMALLCAP World Fund

and decreasing to 0.589% on such assets in excess of $44 billion. For the year ended September 30, 2020, the investment advisory services fee was $290,494,000, which was equivalent to an annualized rate of 0.613% 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 further described below:

Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of directors 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 in this section. In some cases, the board of directors 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.

Share class	Currently approved limits			Plan limits
Class A		0.30	%		0.30	%
Class 529-A		0.30			0.50
Classes C, 529-C and R-1		1.00			1.00
Class R-2		0.75			1.00
Class R-2E		0.60			0.85
Classes 529-E and R-3		0.50			0.75
Classes T, F-1, 529-T, 529-F-1 and R-4		0.25			0.50

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 limits are not exceeded. As of September 30, 2020, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

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.

Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to all share classes. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the daily net assets attributable to each share class of the fund. Currently the fund pays CRMC an administrative services fee at the annual rate of 0.03% of daily net assets attributable to each share class of the fund for CRMC’s provision of administrative services.

529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica^®, a tax-advantaged savings program for individuals with disabilities. Prior to January 1, 2020, the quarterly fee was based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. Effective January 1, 2020, the quarterly fee was amended to a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 and ABLE shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.

SMALLCAP World Fund

For the year ended September 30, 2020, class-specific expenses under the agreements were as follows (dollars in thousands):

Share class	Distribution services		Transfer agent services			Administrative services			529 plan services
Class A	$	62,120	$	34,239		$	7,350		Not applicable
Class C		6,132		885			187		Not applicable
Class T		—		—	*		—	*	Not applicable
Class F-1		1,750		1,144			212		Not applicable
Class F-2		Not applicable		6,413			1,622		Not applicable
Class F-3		Not applicable		316			743		Not applicable
Class 529-A		3,269		1,841			428		$895
Class 529-C		1,515		215			47		98
Class 529-E		288		33			18		37
Class 529-T		—		—	*		—	*	—	*
Class 529-F-1		—		204			47		99
Class R-1		244		34			7		Not applicable
Class R-2		4,045		1,956			162		Not applicable
Class R-2E		186		66			9		Not applicable
Class R-3		3,749		1,201			225		Not applicable
Class R-4		1,945		808			234		Not applicable
Class R-5E		Not applicable		93			19		Not applicable
Class R-5		Not applicable		197			113		Not applicable
Class R-6		Not applicable		54			2,789		Not applicable
Total class-specific expenses	$	85,243	$	49,699		$	14,212		$1,129

*	Amount less than one thousand.

Directors’ deferred compensation — Directors 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. Directors’ compensation of $1,125,000 in the fund’s statement of operations reflects $411,000 in current fees (either paid in cash or deferred) and a net increase of $714,000 in the value of the deferred amounts.

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

Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.

Security transactions with related funds — The fund purchased securities from, and sold securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of directors. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common directors and/or common officers. Each transaction was executed at the current market price of the security and no brokerage commissions or fees were paid in accordance with Rule 17a-7 of the 1940 Act. During the year ended September 30, 2020, the fund engaged in such purchase and sale transactions with related funds in the amounts of $426,390,000 and $714,052,000, respectively, which generated $220,665,000 of net realized gains from such sales.

Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended September 30, 2020.

8. Committed line of credit

The fund participates with other funds managed by CRMC (or funds managed by certain affiliates of CRMC) in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to support shareholder redemptions. The fund has agreed to pay commitment

26	SMALLCAP World Fund

fees on its pro-rata portion of the line of credit, which are reflected in other expenses in the fund’s statement of operations. The fund did not borrow on this line of credit at any time during the year ended September 30, 2020.

9. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

	Sales*				Reinvestments of distributions					Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount			Shares

Year ended September 30, 2020

Class A	$	2,336,768		40,761	$	1,027,576		17,535		$	(3,286,935	)		(58,851	)	$	77,409			(555	)
Class C		74,964		1,548		33,326		668			(304,344	)		(6,158	)		(196,054	)		(3,942	)
Class T		—		—		—		—			—			—			—			—
Class F-1		103,668		1,857		31,344		542			(229,459	)		(4,094	)		(94,447	)		(1,695	)
Class F-2		1,931,436		32,933		214,340		3,587			(1,472,587	)		(26,146	)		673,189			10,374
Class F-3		931,464		15,970		98,775		1,666			(602,510	)		(10,586	)		427,729			7,050
Class 529-A		243,478		4,160		60,720		1,051			(245,122	)		(4,290	)		59,076			921
Class 529-C		16,043		324		9,036		178			(147,381	)		(2,822	)		(122,302	)		(2,320	)
Class 529-E		4,605		85		2,675		48			(13,135	)		(240	)		(5,855	)		(107	)
Class 529-T		—		—		1		—	^†		—			—			1			—	^†
Class 529-F-1		29,821		514		6,562		112			(31,702	)		(548	)		4,681			78
Class R-1		3,771		75		1,174		23			(5,519	)		(111	)		(574	)		(13	)
Class R-2		98,714		1,965		26,618		514			(170,182	)		(3,415	)		(44,850	)		(936	)
Class R-2E		7,926		142		1,329		23			(8,057	)		(146	)		1,198			19
Class R-3		128,172		2,383		34,736		625			(243,937	)		(4,559	)		(81,029	)		(1,551	)
Class R-4		114,432		2,030		34,458		593			(242,163	)		(4,348	)		(93,273	)		(1,725	)
Class R-5E		43,355		781		2,100		36			(14,803	)		(257	)		30,652			560
Class R-5		49,372		835		16,026		264			(104,908	)		(1,776	)		(39,510	)		(677	)
Class R-6		2,104,180		37,740		361,112		6,007			(1,303,226	)		(21,874	)		1,162,066			21,873
Total net increase (decrease)	$	8,222,169		144,103	$	1,961,908		33,472		$	(8,425,970	)		(150,221	)	$	1,758,107			27,354

Year ended September 30, 2019

Class A	$	2,210,172		41,086	$	1,295,479		29,112		$	(2,802,018	)		(52,309	)	$	703,633			17,889
Class C		83,003		1,786		48,619		1,265			(194,247	)		(4,184	)		(62,625	)		(1,133	)
Class T		—		—		—		—			—			—			—			—
Class F-1		131,775		2,486		41,002		933			(183,796	)		(3,464	)		(11,019	)		(45	)
Class F-2		1,677,011		30,466		247,799		5,478			(1,178,290	)		(21,714	)		746,520			14,230
Class F-3		697,343		12,871		99,562		2,221			(389,445	)		(7,176	)		407,460			7,916
Class 529-A		145,986		2,749		78,590		1,789			(216,308	)		(4,052	)		8,268			486
Class 529-C		20,384		430		13,744		351			(59,717	)		(1,259	)		(25,589	)		(478	)
Class 529-E		5,289		102		3,643		86			(10,326	)		(201	)		(1,394	)		(13	)
Class 529-T		—		—		1		—	^†		—			—			1			—	^†
Class 529-F-1		34,950		643		8,167		183			(24,157	)		(449	)		18,960			377
Class R-1		3,828		80		1,728		43			(8,597	)		(177	)		(3,041	)		(54	)
Class R-2		104,191		2,172		36,387		914			(165,221	)		(3,426	)		(24,643	)		(340	)
Class R-2E		11,018		205		1,360		31			(5,877	)		(110	)		6,501			126
Class R-3		143,974		2,805		47,647		1,123			(221,232	)		(4,315	)		(29,611	)		(387	)
Class R-4		119,255		2,231		48,251		1,094			(207,111	)		(3,874	)		(39,605	)		(549	)
Class R-5E		31,748		583		1,676		38			(19,103	)		(377	)		14,321			244
Class R-5		45,772		826		22,355		487			(98,305	)		(1,767	)		(30,178	)		(454	)
Class R-6		1,571,194		28,468		410,894		9,043			(562,953	)		(10,340	)		1,419,135			27,171
Total net increase (decrease)	$	7,036,893		129,989	$	2,406,904		54,191		$	(6,346,703	)		(119,194	)	$	3,097,094			64,986

*	Includes exchanges between share classes of the fund.
^†	Amount less than one thousand.

10. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $17,525,132,000 and $16,780,948,000, respectively, during the year ended September 30, 2020.

SMALLCAP World Fund

Financial highlights

			Income (loss) from investment operations¹									Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment (loss) 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 reimburse- ments⁴			Ratio of expenses to average net assets after reimburse- ments^3,4			Ratio of net (loss) income to average net assets³
Class A:
9/30/2020	$	55.24	$	(.15	)	$	13.63		$	13.48		$	—		$	(2.49	)	$	(2.49	)	$	66.23		24.98	%	$	27,781			1.06	%		1.06	%		(.25	)%
9/30/2019		60.19		.05			(1.69	)		(1.64	)		—			(3.31	)		(3.31	)		55.24		(1.37	)		23,203			1.06			1.06			.09
9/30/2018		55.60		.04			7.05			7.09			—			(2.50	)		(2.50	)		60.19		13.13			24,203			1.04			1.04			.06
9/30/2017		47.24		.07			8.45			8.52			(.16	)		—			(.16	)		55.60		18.11			21,383			1.07			1.07			.14
9/30/2016		45.04		.04			4.99			5.03			—			(2.83	)		(2.83	)		47.24		11.72			18,762			1.10			1.10			.08
Class C:
9/30/2020		47.42		(.48	)		11.59			11.11			—			(2.49	)		(2.49	)		56.04		24.07			575			1.79			1.79			(.97	)
9/30/2019		52.63		(.32	)		(1.58	)		(1.90	)		—			(3.31	)		(3.31	)		47.42		(2.13	)		673			1.82			1.82			(.68	)
9/30/2018		49.30		(.38	)		6.21			5.83			—			(2.50	)		(2.50	)		52.63		12.23			807			1.83			1.83			(.74	)
9/30/2017		42.08		(.29	)		7.51			7.22			—			—			—			49.30		17.16			810			1.87			1.87			(.66	)
9/30/2016		40.73		(.29	)		4.47			4.18			—			(2.83	)		(2.83	)		42.08		10.82			824			1.90			1.90			(.73	)
Class T:
9/30/2020		55.54		—	⁵		13.73			13.73			—			(2.49	)		(2.49	)		66.78		25.30	⁶		—	⁷		.81	⁶		.81	⁶		—	^6,8
9/30/2019		60.35		.18			(1.68	)		(1.50	)		—			(3.31	)		(3.31	)		55.54		(1.14	)⁶		—	⁷		.82	⁶		.82	⁶		.33	⁶
9/30/2018		55.64		.15			7.06			7.21			—			(2.50	)		(2.50	)		60.35		13.36	⁶		—	⁷		.85	⁶		.85	⁶		.25	⁶
9/30/2017^9,10		49.61		.13			5.90			6.03			—			—			—			55.64		12.15	^6,11		—	⁷		.42	^6,11		.42	^6,11		.25	^6,11
Class F-1:
9/30/2020		54.51		(.15	)		13.44			13.29			—			(2.49	)		(2.49	)		65.31		24.96			731			1.08			1.08			(.26	)
9/30/2019		59.47		.03			(1.68	)		(1.65	)		—			(3.31	)		(3.31	)		54.51		(1.43	)		703			1.10			1.10			.05
9/30/2018		55.00		—	⁵		6.97			6.97			—			(2.50	)		(2.50	)		59.47		13.06			770			1.09			1.09			.01
9/30/2017		46.74		.05			8.36			8.41			(.15	)		—			(.15	)		55.00		18.06			792			1.10			1.10			.11
9/30/2016		44.60		.03			4.94			4.97			—			(2.83	)		(2.83	)		46.74		11.69			718			1.11			1.11			.07
Class F-2:
9/30/2020		56.26		.01			13.91			13.92			—			(2.49	)		(2.49	)		67.69		25.32			6,608			.79			.79			.02
9/30/2019		61.07		.20			(1.70	)		(1.50	)		—			(3.31	)		(3.31	)		56.26		(1.12	)		4,909			.80			.80			.36
9/30/2018		56.24		.20			7.13			7.33			—			(2.50	)		(2.50	)		61.07		13.41			4,459			.78			.78			.34
9/30/2017		47.80		.19			8.54			8.73			(.29	)		—			(.29	)		56.24		18.40			2,894			.82			.82			.38
9/30/2016		45.42		.16			5.05			5.21			—			(2.83	)		(2.83	)		47.80		12.03			2,118			.82			.82			.36
Class F-3:
9/30/2020		55.80		.07			13.80			13.87			—			(2.49	)		(2.49	)		67.18		25.44			3,065			.68			.68			.12
9/30/2019		60.54		.25			(1.68	)		(1.43	)		—			(3.31	)		(3.31	)		55.80		(1.02	)		2,153			.70			.70			.46
9/30/2018		55.74		.24			7.06			7.30			—			(2.50	)		(2.50	)		60.54		13.49			1,856			.71			.71			.41
9/30/2017^9,12		47.93		.25			7.56			7.81			—			—			—			55.74		16.30	¹¹		1,221			.71	¹³		.71	¹³		.70	¹³
Class 529-A:
9/30/2020		54.51		(.16	)		13.43			13.27			—			(2.49	)		(2.49	)		65.29		24.95			1,662			1.09			1.09			(.28	)
9/30/2019		59.47		.02			(1.67	)		(1.65	)		—			(3.31	)		(3.31	)		54.51		(1.43	)		1,337			1.12			1.12			.03
9/30/2018		55.01		—	⁵		6.96			6.96			—			(2.50	)		(2.50	)		59.47		13.05			1,430			1.11			1.11			—	⁸
9/30/2017		46.74		.04			8.36			8.40			(.13	)		—			(.13	)		55.01		18.03			1,195			1.13			1.13			.08
9/30/2016		44.63		—	⁵		4.94			4.94			—			(2.83	)		(2.83	)		46.74		11.64			1,024			1.17			1.17			—	⁸


28	SMALLCAP World Fund

			Income (loss) from investment operations¹									Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment (loss) 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 reimburse- ments⁴			Ratio of expenses to average net assets after reimburse- ments^3,4			Ratio of net (loss) income to average net assets³
Class 529-C:
9/30/2020	$	48.35	$	(.49	)	$	11.80		$	11.31		$	—		$	(2.49	)	$	(2.49	)	$	57.17		24.02	%	$	86			1.84	%		1.84	%		(.99	)%
9/30/2019		53.60		(.34	)		(1.60	)		(1.94	)		—			(3.31	)		(3.31	)		48.35		(2.17	)		185			1.86			1.86			(.72	)
9/30/2018		50.18		(.42	)		6.34			5.92			—			(2.50	)		(2.50	)		53.60		12.19			230			1.88			1.88			(.81	)
9/30/2017		42.85		(.32	)		7.65			7.33			—			—			—			50.18		17.11			314			1.91			1.91			(.70	)
9/30/2016		41.45		(.31	)		4.54			4.23			—			(2.83	)		(2.83	)		42.85		10.78			286			1.96			1.96			(.78	)
Class 529-E:
9/30/2020		52.68		(.26	)		12.96			12.70			—			(2.49	)		(2.49	)		62.89		24.70			62			1.28			1.28			(.47	)
9/30/2019		57.73		(.09	)		(1.65	)		(1.74	)		—			(3.31	)		(3.31	)		52.68		(1.64	)		58			1.31			1.31			(.17	)
9/30/2018		53.57		(.12	)		6.78			6.66			—			(2.50	)		(2.50	)		57.73		12.82			64			1.32			1.32			(.22	)
9/30/2017		45.53		(.06	)		8.14			8.08			(.04	)		—			(.04	)		53.57		17.77			59			1.35			1.35			(.13	)
9/30/2016		43.63		(.09	)		4.82			4.73			—			(2.83	)		(2.83	)		45.53		11.39			53			1.38			1.38			(.21	)
Class 529-T:
9/30/2020		55.49		(.03	)		13.70			13.67			—			(2.49	)		(2.49	)		66.67		25.21	⁶		—	⁷		.85	⁶		.85	⁶		(.05	)⁶
9/30/2019		60.32		.15			(1.67	)		(1.52	)		—			(3.31	)		(3.31	)		55.49		(1.17	)⁶		—	⁷		.87	⁶		.87	⁶		.28	⁶
9/30/2018		55.63		.13			7.06			7.19			—			(2.50	)		(2.50	)		60.32		13.30	⁶		—	⁷		.88	⁶		.88	⁶		.22	⁶
9/30/2017^9,10		49.61		.12			5.90			6.02			—			—			—			55.63		12.13	^6,11		—	⁷		.45	^6,11		.45	^6,11		.22	^6,11
Class 529-F-1:
9/30/2020		55.41		(.03	)		13.68			13.65			—			(2.49	)		(2.49	)		66.57		25.21			181			.86			.86			(.05	)
9/30/2019		60.26		.15			(1.69	)		(1.54	)		—			(3.31	)		(3.31	)		55.41		(1.22	)		146			.88			.88			.27
9/30/2018		55.58		.13			7.05			7.18			—			(2.50	)		(2.50	)		60.26		13.31			136			.89			.89			.22
9/30/2017		47.23		.15			8.43			8.58			(.23	)		—			(.23	)		55.58		18.26			113			.92			.92			.30
9/30/2016		44.98		.09			4.99			5.08			—			(2.83	)		(2.83	)		47.23		11.85			90			.96			.96			.22
Class R-1:
9/30/2020		49.08		(.50	)		12.00			11.50			—			(2.49	)		(2.49	)		58.09		24.07			28			1.79			1.79			(.98	)
9/30/2019		54.32		(.33	)		(1.60	)		(1.93	)		—			(3.31	)		(3.31	)		49.08		(2.12	)		24			1.82			1.82			(.68	)
9/30/2018		50.79		(.38	)		6.41			6.03			—			(2.50	)		(2.50	)		54.32		12.26			30			1.81			1.81			(.72	)
9/30/2017		43.34		(.29	)		7.74			7.45			—			—			—			50.79		17.19			30			1.83			1.83			(.63	)
9/30/2016		41.85		(.28	)		4.60			4.32			—			(2.83	)		(2.83	)		43.34		10.89			33			1.85			1.85			(.68	)
Class R-2:
9/30/2020		49.12		(.49	)		12.02			11.53			—			(2.49	)		(2.49	)		58.16		24.09			588			1.78			1.78			(.97	)
9/30/2019		54.36		(.31	)		(1.62	)		(1.93	)		—			(3.31	)		(3.31	)		49.12		(2.12	)		542			1.79			1.79			(.65	)
9/30/2018		50.82		(.37	)		6.41			6.04			—			(2.50	)		(2.50	)		54.36		12.28			619			1.79			1.79			(.70	)
9/30/2017		43.35		(.27	)		7.74			7.47			—			—			—			50.82		17.23			628			1.80			1.80			(.60	)
9/30/2016		41.85		(.27	)		4.60			4.33			—			(2.83	)		(2.83	)		43.35		10.89			616			1.84			1.84			(.67	)
Class R-2E:
9/30/2020		54.34		(.38	)		13.36			12.98			—			(2.49	)		(2.49	)		64.83		24.46			35			1.48			1.48			(.67	)
9/30/2019		59.52		(.18	)		(1.69	)		(1.87	)		—			(3.31	)		(3.31	)		54.34		(1.82	)		28			1.50			1.50			(.34	)
9/30/2018		55.26		(.22	)		6.98			6.76			—			(2.50	)		(2.50	)		59.52		12.61			24			1.50			1.50			(.38	)
9/30/2017		47.07		(.14	)		8.40			8.26			(.07	)		—			(.07	)		55.26		17.57			16			1.51			1.51			(.27	)
9/30/2016		45.04		(.08	)		4.94			4.86			—			(2.83	)		(2.83	)		47.07		11.32			6			1.51			1.51			(.20	)

See end of table for footnotes.

SMALLCAP World Fund

Financial highlights (continued)

			Income (loss) from investment operations¹									Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment (loss) 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 reimburse- ments⁴			Ratio of expenses to average net assets after reimburse- ments^3,4			Ratio of net (loss) income to average net assets³
Class R-3:
9/30/2020	$	52.54	$	(.28	)	$	12.91		$	12.63		$	—		$	(2.49	)	$	(2.49	)	$	62.68		24.65	%	$	806			1.33	%		1.33	%		(.52	)%
9/30/2019		57.60		(.10	)		(1.65	)		(1.75	)		—			(3.31	)		(3.31	)		52.54		(1.67	)		757			1.34			1.34			(.20	)
9/30/2018		53.47		(.14	)		6.77			6.63			—			(2.50	)		(2.50	)		57.60		12.79			852			1.35			1.35			(.25	)
9/30/2017		45.45		(.07	)		8.13			8.06			(.04	)		—			(.04	)		53.47		17.74			844			1.35			1.35			(.14	)
9/30/2016		43.56		(.09	)		4.81			4.72			—			(2.83	)		(2.83	)		45.45		11.41			783			1.39			1.39			(.22	)
Class R-4:
9/30/2020		54.78		(.12	)		13.51			13.39			—			(2.49	)		(2.49	)		65.68		25.03			835			1.02			1.02			(.21	)
9/30/2019		59.71		.06			(1.68	)		(1.62	)		—			(3.31	)		(3.31	)		54.78		(1.37	)		791			1.04			1.04			.11
9/30/2018		55.18		.03			7.00			7.03			—			(2.50	)		(2.50	)		59.71		13.13			894			1.04			1.04			.05
9/30/2017		46.89		.08			8.38			8.46			(.17	)		—			(.17	)		55.18		18.12			865			1.05			1.05			.17
9/30/2016		44.71		.04			4.97			5.01			—			(2.83	)		(2.83	)		46.89		11.76			764			1.07			1.07			.10
Class R-5E:
9/30/2020		55.44		(.01	)		13.70			13.69			—			(2.49	)		(2.49	)		66.64		25.28			84			.82			.82			(.02	)
9/30/2019		60.26		.18			(1.69	)		(1.51	)		—			(3.31	)		(3.31	)		55.44		(1.16	)		39			.84			.84			.32
9/30/2018		55.55		.18			7.03			7.21			—			(2.50	)		(2.50	)		60.26		13.38			28			.84			.84			.31
9/30/2017		47.30		.18			8.42			8.60			(.35	)		—			(.35	)		55.55		18.33			12			.84			.84			.36
9/30/2016^9,14		47.09		.12			2.92			3.04			—			(2.83	)		(2.83	)		47.30		7.01	¹¹		—	⁷		.96	¹³		.95	¹³		.32	¹³
Class R-5:
9/30/2020		57.16		.06			14.13			14.19			—			(2.49	)		(2.49	)		68.86		25.40			406			.72			.72			.09
9/30/2019		61.94		.22			(1.69	)		(1.47	)		—			(3.31	)		(3.31	)		57.16		(1.06	)		376			.74			.74			.40
9/30/2018		56.99		.21			7.24			7.45			—			(2.50	)		(2.50	)		61.94		13.46			436			.75			.75			.36
9/30/2017		48.40		.24			8.64			8.88			(.29	)		—			(.29	)		56.99		18.48			424			.75			.75			.47
9/30/2016		45.94		.18			5.11			5.29			—			(2.83	)		(2.83	)		48.40		12.09			359			.77			.77			.41
Class R-6:
9/30/2020		56.56		.08			14.00			14.08			—			(2.49	)		(2.49	)		68.15		25.47			11,166			.67			.67			.14
9/30/2019		61.31		.26			(1.70	)		(1.44	)		—			(3.31	)		(3.31	)		56.56		(1.02	)		8,031			.69			.69			.47
9/30/2018		56.40		.25			7.16			7.41			—			(2.50	)		(2.50	)		61.31		13.53			7,039			.69			.69			.42
9/30/2017		47.93		.26			8.54			8.80			(.33	)		—			(.33	)		56.40		18.51			5,289			.70			.70			.51
9/30/2016		45.49		.21			5.06			5.27			—			(2.83	)		(2.83	)		47.93		12.15			3,403			.71			.71			.48

	Year ended September 30,
	2020		2019		2018		2017		2016
Portfolio turnover rate for all share classes¹⁵		38%		39%		35%		32%		29%

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 from CRMC. During one of the periods shown, CRMC reimbursed a portion of transfer agent services fees for certain share classes.
⁴	Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds.
⁵	Amount less than $.01.
⁶	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁷	Amount less than $1 million.
⁸	Amount less than .01%.
⁹	Based on operations for a period that is less than a full year.
¹⁰	Class T and 529-T shares began investment operations on April 7, 2017.
¹¹	Not annualized.
¹²	Class F-3 shares began investment operations on January 27, 2017.
¹³	Annualized.
¹⁴	Class R-5E shares began investment operations on November 20, 2015.
¹⁵	Rates do not include the fund’s portfolio activity with respect to any Central Funds.

See notes to financial statements.

30	SMALLCAP World Fund

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of SMALLCAP World Fund, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of SMALLCAP World Fund, Inc. (the “Fund”), including the summary investment portfolio, as of September 30, 2020, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of September 30, 2020, and 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Costa Mesa, California
November 10, 2020

We have served as the auditor of one or more American Funds investment companies since 1956.

SMALLCAP World Fund

Expense example

unaudited

As a fund shareholder, 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, 2020, through September 30, 2020).

Actual expenses:

The first line of each share class in the table on the following 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 titled “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 following 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:

Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3 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 on the following page 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.

32	SMALLCAP World Fund

	Beginning account value 4/1/2020		Ending account value 9/30/2020		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,453.79	$	6.52		1.06	%
Class A – assumed 5% return		1,000.00		1,019.75		5.37		1.06
Class C – actual return		1,000.00		1,448.15		10.92		1.78
Class C – assumed 5% return		1,000.00		1,016.14		9.00		1.78
Class T – actual return		1,000.00		1,455.65		4.92		.80
Class T – assumed 5% return		1,000.00		1,021.06		4.05		.80
Class F-1 – actual return		1,000.00		1,453.71		6.58		1.07
Class F-1 – assumed 5% return		1,000.00		1,019.70		5.42		1.07
Class F-2 – actual return		1,000.00		1,455.80		4.80		.78
Class F-2 – assumed 5% return		1,000.00		1,021.16		3.95		.78
Class F-3 – actual return		1,000.00		1,456.45		4.19		.68
Class F-3 – assumed 5% return		1,000.00		1,021.66		3.45		.68
Class 529-A – actual return		1,000.00		1,453.49		6.70		1.09
Class 529-A – assumed 5% return		1,000.00		1,019.60		5.52		1.09
Class 529-C – actual return		1,000.00		1,448.21		11.23		1.83
Class 529-C – assumed 5% return		1,000.00		1,015.89		9.25		1.83
Class 529-E – actual return		1,000.00		1,451.84		7.81		1.27
Class 529-E – assumed 5% return		1,000.00		1,018.70		6.43		1.27
Class 529-T – actual return		1,000.00		1,455.12		5.23		.85
Class 529-T – assumed 5% return		1,000.00		1,020.81		4.31		.85
Class 529-F-1 – actual return		1,000.00		1,455.20		5.29		.86
Class 529-F-1 – assumed 5% return		1,000.00		1,020.76		4.36		.86
Class R-1 – actual return		1,000.00		1,448.65		10.86		1.77
Class R-1 – assumed 5% return		1,000.00		1,016.19		8.95		1.77
Class R-2 – actual return		1,000.00		1,448.69		10.80		1.76
Class R-2 – assumed 5% return		1,000.00		1,016.24		8.90		1.76
Class R-2E – actual return		1,000.00		1,450.74		9.03		1.47
Class R-2E – assumed 5% return		1,000.00		1,017.70		7.44		1.47
Class R-3 – actual return		1,000.00		1,451.92		8.11		1.32
Class R-3 – assumed 5% return		1,000.00		1,018.45		6.68		1.32
Class R-4 – actual return		1,000.00		1,453.87		6.21		1.01
Class R-4 – assumed 5% return		1,000.00		1,020.00		5.11		1.01
Class R-5E – actual return		1,000.00		1,455.47		4.99		.81
Class R-5E – assumed 5% return		1,000.00		1,021.01		4.10		.81
Class R-5 – actual return		1,000.00		1,456.25		4.43		.72
Class R-5 – assumed 5% return		1,000.00		1,021.46		3.65		.72
Class R-6 – actual return		1,000.00		1,456.63		4.06		.66
Class R-6 – assumed 5% return		1,000.00		1,021.76		3.35		.66

*	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 365 (to reflect the one-half year period).

SMALLCAP World Fund

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, 2020:

Long-term capital gains	$2,009,142,000
Foreign taxes	$0.02 per share
Foreign source income	$0.33 per share

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2021, to determine the calendar year amounts to be included on their 2020 tax returns. Shareholders should consult their tax advisors.

34	SMALLCAP World Fund

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the continuation of the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through November 30, 2021. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all the fund’s independent board members. The board and the committee determined in the exercise of their business judgment that the fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account their interaction with CRMC as well as information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management (the manner in which the fund’s assets are managed, including liquidity management), financial, investment operations, compliance, trading, proxy voting, shareholder communications, and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative and shareholder services provided by CRMC to the fund under the agreement and other agreements, as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board considered the risks assumed by CRMC in providing services to the fund, including operational, business, financial, reputational, regulatory and litigation risks. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective. They compared the fund’s investment results with those of other funds (including funds that currently form the basis of the Lipper index for the category in which the fund is included), and data such as relevant market and fund indexes over various periods (including the fund’s lifetime) through March 31, 2020. They generally placed greater emphasis on longer term periods. On the basis of this evaluation and the board’s and the committee’s ongoing review of investment results, and considering the relative market conditions during certain of the reporting periods, the board and the committee concluded that the fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses are competitive with those of other similar funds included in the comparable Lipper category. The board and the committee also considered the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, as well as the risks assumed by the adviser, and that the fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

SMALLCAP World Fund

4. Ancillary benefits

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the fund and other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of the fund, and since that time has undertaken to bear the cost of obtaining such research. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

36	SMALLCAP World Fund