Form N-Q AMERICAN FUNDS DEVELOPIN For: Aug 31
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
Quarterly Schedule of Portfolio Holdings of
Registered Management Investment Company
Investment Company Act File Number: 811-22881
American Funds Developing World Growth and Income Fund
(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: (213) 486-9200
Date of fiscal year end: November 30
Date of reporting period: August 31, 2016
Michael W. Stockton
American Funds Developing World Growth and Income Fund
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Schedule of Investments
unaudited
| Common stocks 89.15% Financials 16.72% |
Shares | Value (000) |
| Discovery Ltd. | 5,620,366 | $45,813 |
| Fibra Uno Administración, SA de CV | 21,389,900 | 41,354 |
| First Gulf Bank PJSC | 11,899,338 | 37,903 |
| Union National Bank PJSC | 30,234,452 | 34,489 |
| China Pacific Insurance (Group) Co., Ltd., Class H | 8,543,600 | 30,066 |
| Moscow Exchange MICEX-RTS PJSC | 14,318,889 | 27,829 |
| Credicorp Ltd. | 122,200 | 19,146 |
| China Overseas Land & Investment Ltd. | 5,464,000 | 18,067 |
| Shinhan Financial Group Co., Ltd. | 452,754 | 16,649 |
| Banco Bradesco SA, preferred nominative (ADR) | 1,765,720 | 15,750 |
| BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 2,603,600 | 14,440 |
| BDO Unibank, Inc. | 4,906,240 | 12,035 |
| Akbank TAS | 4,522,306 | 11,958 |
| AIA Group Ltd. | 1,771,200 | 11,199 |
| Siam Commercial Bank PCL | 2,263,800 | 10,464 |
| Grupo Financiero Inbursa, SAB de CV | 5,620,500 | 9,803 |
| ICICI Bank Ltd. | 2,329,430 | 8,974 |
| Mapletree Greater China Commercial Trust | 11,070,300 | 8,938 |
| Sberbank of Russia | 3,235,447 | 7,101 |
| Itaú Unibanco Holding SA, preferred nominative (ADR) | 433,785 | 4,806 |
| 386,784 | ||
| Consumer staples 13.92% | ||
| Unilever PLC | 1,335,700 | 61,898 |
| Thai Beverage PCL | 55,467,000 | 40,508 |
| Carlsberg A/S | 341,587 | 32,024 |
| Nestlé SA | 383,019 | 30,492 |
| Shoprite Holdings Ltd. | 2,161,408 | 27,712 |
| Philip Morris International Inc. | 255,600 | 25,542 |
| British American Tobacco PLC | 395,700 | 24,552 |
| Danone SA | 270,894 | 20,581 |
| Diageo PLC | 627,700 | 17,380 |
| PZ Cussons PLC | 3,737,500 | 16,441 |
| Olam International Ltd. | 8,761,600 | 13,376 |
| Mead Johnson Nutrition Co. | 133,200 | 11,331 |
| 321,837 | ||
| Consumer discretionary 12.81% | ||
| Astra International Tbk PT | 120,582,800 | 74,086 |
| Sands China Ltd. | 11,380,000 | 44,742 |
| Matahari Department Store Tbk PT | 17,633,400 | 26,586 |
| PT Surya Citra Media Tbk | 100,412,000 | 22,936 |
| Minth Group Ltd. | 6,026,000 | 22,799 |
| Hyundai Motor Co., Series 2 | 163,432 | 14,731 |
| Hyundai Motor Co. | 34,794 | 4,150 |
| Grupo Sanborns, SAB de CV, Series B1 | 14,235,410 | 16,857 |
| Wynn Macau, Ltd. | 10,999,600 | 15,313 |
American Funds Developing World Growth and Income
Fund — Page 1 of 8
unaudited
| Common stocks Consumer discretionary (continued) |
Shares | Value (000) |
| Stella International Holdings Ltd. | 8,953,000 | $14,242 |
| YUM! Brands, Inc. | 141,900 | 12,872 |
| Naspers Ltd., Class N | 51,876 | 8,490 |
| Chow Sang Sang Holdings International Ltd. | 3,784,000 | 7,200 |
| Great Wall Motor Co. Ltd., Class H | 7,243,500 | 7,031 |
| Merida Industry Co., Ltd. | 1,056,350 | 4,311 |
| 296,346 | ||
| Information technology 10.43% | ||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 14,911,000 | 82,707 |
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 471,200 | 13,542 |
| Delta Electronics, Inc. | 11,827,407 | 61,503 |
| Quanta Computer Inc. | 10,325,000 | 19,101 |
| Broadcom Ltd. | 105,800 | 18,665 |
| Accenture PLC, Class A | 113,000 | 12,995 |
| MercadoLibre, Inc. | 56,400 | 9,701 |
| VTech Holdings Ltd. | 746,600 | 8,335 |
| Infosys Ltd. | 333,800 | 5,163 |
| Tech Mahindra Ltd. | 699,770 | 4,898 |
| Catcher Technology Co., Ltd.1 | 631,000 | 4,534 |
| 241,144 | ||
| Industrials 9.10% | ||
| CCR SA, ordinary nominative | 8,672,300 | 45,816 |
| CTCI Corp. | 16,667,000 | 23,637 |
| SEEK Ltd. | 1,926,052 | 23,262 |
| BTS Rail Mass Transit Growth Infrastructure Fund | 52,714,700 | 19,036 |
| Edenred SA | 798,170 | 17,379 |
| AirTAC International Group | 2,297,250 | 17,158 |
| Haitian International Holdings Ltd. | 8,335,000 | 16,783 |
| International Container Terminal Services, Inc. | 8,631,900 | 15,561 |
| IJM Corp. Bhd. | 15,083,400 | 12,757 |
| Airbus Group SE, non-registered shares | 168,900 | 9,851 |
| Beijing Enterprises Holdings Ltd. | 1,590,500 | 9,124 |
| 210,364 | ||
| Telecommunication services 7.71% | ||
| América Móvil, SAB de CV, Series L (ADR) | 4,461,200 | 53,401 |
| HKT Trust and HKT Ltd., units | 23,480,960 | 32,387 |
| Globe Telecom, Inc. | 719,605 | 30,424 |
| Singapore Telecommunications Ltd. | 8,245,700 | 24,330 |
| Bharti Airtel Ltd. | 4,646,654 | 23,011 |
| Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B | 29,672,300 | 9,417 |
| MegaFon PJSC (GDR) | 527,095 | 5,350 |
| 178,320 | ||
| Health care 4.06% | ||
| Shanghai Fosun Pharmaceutical (Group) Co., Ltd. Class H | 12,465,500 | 36,155 |
| Odontoprev SA, ordinary nominative | 6,531,100 | 25,787 |
| Shanghai Pharmaceutical (Group) Co., Ltd., Class H | 7,598,500 | 20,863 |
| Kalbe Farma Tbk PT | 82,088,500 | 11,108 |
| 93,913 |
American Funds Developing World Growth and Income
Fund — Page 2 of 8
unaudited
| Common stocks Materials 3.81% |
Shares | Value (000) |
| Alrosa PJSC | 26,543,853 | $30,571 |
| Vale SA, Class A, preferred nominative | 5,468,867 | 24,506 |
| Vale SA, Class A, preferred nominative (ADR) | 14,800 | 66 |
| LafargeHolcim Ltd. | 383,861 | 20,353 |
| Potash Corp. of Saskatchewan Inc. (CAD denominated) | 696,600 | 12,621 |
| 88,117 | ||
| Energy 3.70% | ||
| Coal India Ltd. | 7,506,088 | 37,379 |
| Türkiye Petrol Rafinerileri AS | 999,581 | 19,570 |
| Oil Search Ltd. | 3,288,009 | 16,606 |
| Tenaris SA (ADR) | 262,900 | 7,214 |
| Rosneft Oil Company OJSC (GDR) | 935,700 | 4,889 |
| 85,658 | ||
| Utilities 2.11% | ||
| Glow Energy PCL | 5,237,300 | 12,104 |
| AES Corp. | 920,600 | 11,112 |
| CLP Holdings Ltd. | 1,033,500 | 10,598 |
| Enersis Américas SA (ADR) | 1,086,400 | 9,050 |
| Enersis Chile SA (ADR) | 1,086,400 | 5,888 |
| 48,752 | ||
| Miscellaneous 4.78% | ||
| Other common stocks in initial period of acquisition | 110,680 | |
| Total common stocks (cost: $2,152,325,000) | 2,061,915 | |
| Preferred securities 0.47% Consumer discretionary 0.47% |
||
| Zee Entertainment Enterprises Ltd., 6.00% preferred, expires 2022 | 78,949,000 | 10,787 |
| Total preferred securities (cost: $10,800,000) | 10,787 | |
| Rights & warrants 2.07% Consumer staples 2.07% |
||
| Savola Group Co., warrants, expire 20172,3 | 3,903,733 | 34,953 |
| Shanghai Jahwa United Co., Ltd., Class A, warrants, expire 20182,3 | 3,000,000 | 13,067 |
| Total rights & warrants (cost: $75,794,000) | 48,020 | |
| Convertible bonds 0.17% Miscellaneous 0.17% |
Principal amount (000) |
|
| Other convertible bonds in initial period of acquisition | 3,845 | |
| Total convertible bonds (cost: $6,436,000) | 3,845 | |
| Bonds, notes & other debt instruments 1.75% Corporate bonds & notes 0.89% Industrials 0.33% |
||
| Lima Metro Line Finance Ltd. 5.875% 20342,4 | $ 6,795 | 7,585 |
American Funds Developing World Growth and Income
Fund — Page 3 of 8
unaudited
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy 0.28% |
Principal amount (000) |
Value (000) |
| Ecopetrol SA 5.875% 2023 | $2,490 | $2,711 |
| YPF SA 8.50% 20252 | 3,650 | 3,927 |
| 6,638 | ||
| Telecommunication services 0.28% | ||
| América Móvil, SAB de CV 2.375% 2016 | 6,488 | 6,489 |
| Total corporate bonds & notes | 20,712 | |
| Bonds & notes of governments outside the U.S. 0.83% | ||
| Argentine Republic 7.50% 20262 | 17,150 | 19,165 |
| U.S. Treasury bonds & notes 0.03% U.S. Treasury 0.03% |
||
| U.S. Treasury 0.875% 2017 | 600 | 601 |
| Total U.S. Treasury bonds & notes | 601 | |
| Total bonds, notes & other debt instruments (cost: $37,206,000) | 40,478 | |
| Short-term securities 6.25% | ||
| BNP Paribas Finance Inc. 0.29% due 9/1/2016 | 41,300 | 41,299 |
| Federal Home Loan Bank 0.30% due 10/4/2016 | 25,000 | 24,993 |
| GlaxoSmithKline Finance PLC 0.64% due 10/28/20162 | 19,000 | 18,986 |
| Victory Receivables Corp. 0.58%–0.59% due 9/14/2016–9/16/20162 | 59,300 | 59,288 |
| Total short-term securities (cost: $144,560,000) | 144,566 | |
| Total investment securities 99.86% (cost: $2,427,121,000) | 2,309,611 | |
| Other assets less liabilities 0.14% | 3,171 | |
| Net assets 100.00% | $2,312,782 |
As permitted by U.S.
Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
American Funds Developing World Growth and Income
Fund — Page 4 of 8
unaudited
Forward currency contracts
The fund has entered into a
forward currency contract as shown in the following table. The average month-end notional amount of open forward currency contracts while held was $20,426,000.
| Settlement date |
Counterparty | Contract amount | Unrealized appreciation at 8/31/2016 (000) | ||
| Receive (000) |
Deliver (000) | ||||
| Sales: | |||||
| British pounds | 9/22/2016 | Bank of America, N.A. | $4,049 | £3,080 | $2 |
The following footnotes apply
to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| 1 | Security did not produce income during the last 12 months. |
| 2 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $156,971,000, which represented 6.79% of the net assets of the fund. |
| 3 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $48,020,000, which represented 2.08% of the net assets of the fund. |
| 4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
Valuation disclosures
Capital Research and Management
Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net
asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the
date the trades are executed with brokers. 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.
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; convertible securities | Standard inputs and underlying equity of the issuer |
| Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
| Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
American Funds Developing World Growth and Income
Fund — Page 5 of 8
unaudited
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. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing
vendors.
Securities and other assets for
which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted
by authority of the fund’s board of trustees 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 trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment
adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair
Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews
changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair
Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review
reports that describe fair value determinations and methods.
The fund’s investment adviser
has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor
information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the
investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values
are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive
markets. 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
American Funds Developing World Growth and Income
Fund — Page 6 of 8
unaudited
participants might reasonably use in valuing the
securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the
inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of August 31, 2016 (dollars in thousands):
| Investment securities | ||||
| Level 1* | Level 2 | Level 3 | Total | |
| Assets: | ||||
| Common stocks: | ||||
| Financials | $386,784 | $— | $— | $386,784 |
| Consumer staples | 321,837 | — | — | 321,837 |
| Consumer discretionary | 296,346 | — | — | 296,346 |
| Information technology | 241,144 | — | — | 241,144 |
| Industrials | 210,364 | — | — | 210,364 |
| Telecommunication services | 178,320 | — | — | 178,320 |
| Health care | 93,913 | — | — | 93,913 |
| Materials | 88,117 | — | — | 88,117 |
| Energy | 85,658 | — | — | 85,658 |
| Utilities | 48,752 | — | — | 48,752 |
| Miscellaneous | 110,680 | — | — | 110,680 |
| Preferred securities | 10,787 | — | — | 10,787 |
| Rights & warrants | — | 48,020 | — | 48,020 |
| Convertible bonds | — | 3,845 | — | 3,845 |
| Bonds, notes & other debt instruments | — | 40,478 | — | 40,478 |
| Short-term securities | — | 144,566 | — | 144,566 |
| Total | $2,072,702 | $236,909 | $— | $2,309,611 |
| Other investments† | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Assets: | ||||
| Unrealized appreciation on open forward currency contracts | $— | $2 | $— | $2 |
| * | Securities with a value of $1,489,587,000, which represented 64.41% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
| † | Forward currency contracts are not included in the investment portfolio. |
American Funds Developing World Growth and Income
Fund — Page 7 of 8
unaudited
| Federal income tax information | (dollars in thousands) |
| Gross unrealized appreciation on investment securities | $166,897 |
| Gross unrealized depreciation on investment securities | (284,428) |
| Net unrealized depreciation on investment securities | (117,531) |
| Cost of investment securities | 2,427,142 |
| Key to abbreviations and symbol |
| ADR = American Depositary Receipts |
| £ = British pounds |
| CAD = Canadian dollars |
| GDR = Global Depositary Receipts |
Investments are not FDIC-insured, nor
are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider
investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be
read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.
| MFGEFPX-100-1016O-S54043 | American Funds Developing World Growth and Income Fund — Page 8 of 8 |
ITEM 2 – Controls and Procedures
The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 3 – Exhibits
The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AMERICAN FUNDS DEVELOPING WORLD GROWTH AND INCOME FUND | |
| By /s/ Shaw B. Wagener | |
|
Shaw B. Wagener, Vice Chairman, President and Principal Executive Officer | |
| Date: October 28, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By /s/ Shaw B. Wagener |
|
Shaw B. Wagener, Vice Chairman, President and Principal Executive Officer |
| Date: October 28, 2016 |
| By /s/ Kimberley H. Monasterio |
|
Kimberley H. Monasterio, Treasurer and Principal Financial Officer |
| Date: October 28, 2016 |
 |
American Funds Developing World Growth and Income Fund 6455 Irvine Center Drive Irvine, California 92618 (213) 486-9200 |
CERTIFICATION
I, Shaw B. Wagener, certify that:
| 1. | I have reviewed this report on Form N-Q of American Funds Developing World Growth and Income Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed; |
| 4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
| b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
| c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and | |
| d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
| 5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions): |
| a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | |
| b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: October 28, 2016
/s/ Shaw B. Wagener
Shaw B. Wagener, Vice Chairman, President and
Principal Executive Officer
American Funds Developing World Growth and Income Fund
 |
American Funds Developing World Growth and Income Fund 6455 Irvine Center Drive Irvine, California 92618 (213) 486-9200 |
CERTIFICATION
I, Kimberley H. Monasterio, certify that:
| 1. | I have reviewed this report on Form N-Q of American Funds Developing World Growth and Income Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed; |
| 4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
| b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
| c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and | |
| d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
| 5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions): |
| a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | |
| b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: October 28, 2016
/s/ Kimberley H. Monasterio
Kimberley H. Monasterio, Treasurer and
Principal Financial Officer
American Funds Developing World Growth and Income Fund
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