PROFILE
THE CASH MANAGEMENT TRUST OF AMERICA(R)
AUGUST 1, 1995
[The American Funds Group(R)]
<PAGE>
THE CASH MANAGEMENT TRUST OF AMERICA(R)
333 South Hope Street August 1, 1995
Los Angeles, CA 90071
1. GOALS
The fund is designed to provide you with a way to earn income from your ready
cash reserves while preserving their value and liquidity.
2. POLICIES
The fund invests in various high-quality money market instruments. These
investments include corporate commercial paper, bank obligations and U.S.
government agency notes. Portfolio instruments will generally mature in no
more than 13 months from the date of purchase, and the fund's average maturity
is 60 days or less.
3. RISKS
While the fund attempts to maintain a constant $1.00 net asset value, no
assurance can be given that it will be able to do so at all times; your
investment is not guaranteed by anyone, including the Federal Deposit Insurance
Corporation, and you could lose money.
4. APPROPRIATENESS
If you are not an investor seeking to earn income on short-term cash reserves,
this fund may not be appropriate for you. Please consult your investment
dealer.
5. FEES AND EXPENSES
Shareholder transaction expenses are charges you pay when you buy or sell
shares of a fund. Annual fund operating expenses are paid out of the fund's
assets. The fund's expenses are factored into its share price or dividends and
are not charged directly to shareholder accounts.
SHAREHOLDER TRANSACTION EXPENSES
--------------------------------
The fund has no sales charge on purchases or reinvested dividends, and no
deferred sales charges, redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
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(as a percentage of average net assets after fee waiver)
Management fees........................0.33%
12b-1 expenses.........................0.07%
Other expenses.........................0.28%
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Total fund operating expenses..........0.68%
EXAMPLE
--------
You would pay the following cumulative expenses on a $1,000 investment,
assuming a 5% annual return. This example should not be considered a
representation of past or future expenses.
ONE YEAR $ 7
THREE YEARS 22
FIVE YEARS 38
TEN YEARS 85
6. PAST RESULTS
Here are the fund's annual total returns for each of the last 10 calendar
years:
[CHART]
1985 7.9
1986 6.7
1987 6.4
1988 7.3
1989 9.1
1990 7.9
1991 5.5
1992 3.1
1993 2.5
1994 3.7
[END CHART]
The fund's annualized yield for the 7-day period ended June 30, 1995 was 5.44%.
You may obtain current yield information by calling 800/421-8068. PAST RESULTS
ARE NOT A GUARANTEE OF FUTURE RESULTS.
7. INVESTMENT ADVISER
Capital Research and Management Company, one of the world's largest and most
experienced investment advisers, manages the fund, which is a member of The
American Funds Group.
8. PURCHASES
The fund's shares are sold through investment dealers. Your investment dealer
can help you with your account, or you may call American Funds Service Company
at 800/421-0180 with questions about your account. Generally, the minimum
initial investment required by the fund is $2,500.
9. REDEMPTIONS
You may redeem shares at no cost by writing a check or by calling American
FundsLine(R) at 800/325-3590. (You will need the fund's number - 09 - if you
use this service.) Transactions will be processed as of the next close of the
New York Stock Exchange.
10. DISTRIBUTIONS
Dividends are automatically reinvested unless you notify American Funds Service
Company that you would like to invest them in another of the American Funds or
receive payment in cash. Dividends are declared daily and paid monthly.
11. OTHER SERVICES
You may exchange your shares for any of the other American Funds or obtain
information about your investment any time by calling American FundsLine(R).
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS APPEAR IN
THE FUND'S ACCOMPANYING PROSPECTUS.
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