THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
ANNUAL REPORT
for the year ended September 30, 1995
[The American Funds Group(R)]
THE CASH MANAGEMENT TRUST OF AMERICA,
THE U.S. TREASURY MONEY FUND OF AMERICA
and THE TAX-EXEMPT MONEY FUND OF AMERICA
have much in common. Each gives shareholders a way to earn income on cash
reserves while seeking to preserve capital and maintain liquidity.
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
high-quality money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA(SM)seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality municipal securities maturing in one year or less.
FOR CURRENT YIELDS, PLEASE CALL TOLL-FREE 800/421-8068.
ABOUT OUR COVER: Whether the goal is saving for a home, a vacation, a college
education or a secure retirement, many shareholders consider their money market
funds to be part of a diversified investment portfolio that also includes
stocks and bonds.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. THE RETURN ON AN INVESTMENT IN
THESE FUNDS WILL VARY. FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
INSURED OR GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE
FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
THERE CAN BE NO ASSURANCE THAT THE FUNDS' NET ASSET VALUES WILL REMAIN CONSTANT
AT $1.00.
Yields representing the 7 days ending each month, annualized, for the past
fiscal year
<TABLE>
<CAPTION>
The Cash The U.S. The
Management Treasury Money Tax-Exempt
Trust of Fund of America Money Fund of
America America
<S> <C> <C> <C>
10/94 4.40% 4.02% 2.66%
11/94 4.63 4.33 2.96
12/94 5.34 4.78 3.75
1/95 5.35 4.85 2.95
2/95 5.46 4.98 3.45
3/95 5.57 5.15 3.33
4/95 5.54 5.13 3.54
5/95 5.52 5.07 3.48
6/95 5.44 5.03 3.14
7/95 5.31 4.98 2.80
8/95 5.29 4.86 3.00
9/95 5.26 4.86 3.19
</TABLE>
FELLOW SHAREHOLDERS:
As the direction of short-term interest rates shifted dramatically, the
American Funds money market funds saw their yields rise and then fall during
fiscal 1995. The end result, however, was that all three portfolios served as
suitable investments for your cash reserves, offering stability of principal
and annual income returns that outpaced inflation. Later, we will discuss the
environment in which these results were produced.
For the 12 months ended September 30, THE CASH MANAGEMENT TRUST OF AMERICA'S
income return was 5.34% with your monthly dividends reinvested, up from 3.10%
in the previous fiscal year. By comparison, the rate of inflation was 2.54% in
fiscal '95 as measured by the Consumer Price Index. As you can see by the
listing that begins on page 4, 88% of the fund's assets is concentrated in
top-quality commercial paper. Other investments may include federal agency
discount notes, certificates of deposit and bankers' acceptances.
THE U.S. TREASURY MONEY FUND OF AMERICA'S income return for the 12 months
through September 30 came to 4.89% with dividends reinvested. In fiscal '94,
the fund reported an income return of 2.89% for the year. Because 100% of the
fund's earnings is derived from investments in U.S. Treasury securities, all of
the income paid by the fund is exempt from state and local taxes in many
states.
THE TAX-EXEMPT MONEY FUND OF AMERICA produced a federally tax-free income
return of 3.14% with dividends reinvested for the annual reporting period, up
from the 1.98% reported the previous fiscal year. Investors in the maximum
39.6% federal tax bracket would have to earn a taxable return of 5.20% to equal
the fund's 3.14% tax-free return. In the 28% bracket, the taxable equivalent
would be 4.36%. Depending on where you live, a portion of the income you
receive from this fund may also be exempt from state and local taxes.
THE INTEREST RATE ENVIRONMENT
While short-term interest rates and money market yields were on the rise at the
start of fiscal 1995, the bond market began the year on a particularly wary
note. It had just endured eight months of rising rates and plunging prices as
the Federal Reserve tried to cool off a surging economy by steadily tightening
short-term credit. The bond market braced for the possibility of another rate
increase and, indeed, that is what happened. Once in November and then again in
February, the Fed boosted the costs of borrowing for businesses and consumers
by hiking short-term interest rates.
The yields on our money market funds, as you can see in the table on the facing
page, reacted favorably to these moves since they typically mirror short-term
interest rate trends. But, uncharacteristically, longer term bonds shrugged off
the Fed's last two rate hikes and appeared to be positively influenced by other
factors.
The results of last November's congressional elections encouraged bond
investors to believe that the federal budget deficit might be reduced.
Moreover, reports of moderate economic growth, continued low inflation and a
slowdown in consumer spending reduced investors' fears of further interest rate
increases, propelling a long, steady rise in bond prices throughout the spring.
In July, the Federal Reserve cut the federal funds rate (the overnight loan
rate between banks) a quarter of a percentage point in an attempt to stimulate
economic growth - the first such easing in three years. This move reinforced
the gradual descent of taxable money market yields.
CREDIT ANALYSIS
An important part of the responsibility of the funds' investment adviser,
Capital Research and Management Company (CRMC), is the ongoing credit analysis
of the issuers of commercial paper, certificates of deposit and tax-exempt
money market instruments purchased by the funds. In performing this analysis,
CRMC's credit analysts do not rely solely on information provided by the major
credit rating services; rather, they do their own credit research, make their
own judgments of creditworthiness, and present their recommendations for review
and approval by CRMC's fixed-income investment committee. This process helps
ensure an appropriately high level of quality among the holdings of each fund.
As you will see by some of the questions and answers on the pages that follow,
our money market funds remain a convenient alternative for investors seeking
relative safety and stability. We appreciate your continued confidence in us
and look forward to providing you with more information in six months.
Cordially,
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
November 7, 1995
FREQUENTLY ASKED QUESTIONS ABOUT THE MONEY MARKET FUNDS IN THE AMERICAN FUNDS
GROUP(R)
You already know that a money market fund can help you meet short-term and
emergency needs, but did you know that it can also give a boost to a dollar
cost averaging investment program? Or that it can help diversify a long-term
investment portfolio?
Below, we answer some of the common questions shareholders have about their
money market funds. For further information, you may wish to consult the
following sources:
- - your securities dealer
- - your fund prospectus
- - American Funds Service Company, 800/421-0180
- - American FundsLine(R) (automated telephone response service),
800/325-3590
(The services described here are subject to change or termination.)
Q. WHAT ARE THE CASH MANAGEMENT TRUST OF AMERICA, THE U.S. TREASURY MONEY FUND
OF AMERICA AND THE TAX-EXEMPT MONEY FUND OF AMERICA?
A. They are three money market funds that each invest in different parts of the
short-term securities market, but seek common goals: current income, capital
preservation and liquidity (the ability to access your funds quickly). You can
find a description of each of the funds' characteristics on the inside front
cover of this report. Each of the funds declares dividends daily, and
distributes the dividends once a month.
Q. IN WHAT DO THE FUNDS INVEST?
A. Each fund invests in high-quality, short-term, income-producing securities.
THE CASH MANAGEMENT TRUST OF AMERICA invests in:
- - commercial paper (short-term "IOUs" issued by
corporations)
- - certificates of deposit and bankers' acceptances
- - U.S. government securities
- - corporate bonds and notes
THE U.S. TREASURY MONEY FUND OF AMERICA invests in:
- - U.S. Treasury bills, notes and bonds
THE TAX-EXEMPT MONEY FUND OF AMERICA invests in:
- - money market instruments issued by states or other
public entities
- - municipal securities, including tax anticipation notes,
construction loan notes, municipal commercial paper and
general obligation bonds
Q. HOW SAFE IS MY INVESTMENT?
A. Our policy is to invest in only the highest rated money market instruments.
Since maintaining stability of principal is a key priority, we have never
included so-called "derivative" instruments among any of the funds' holdings.
Each fund endeavors to maintain a net asset value of $1.00 per share, and all
three have suc cessfully done so since they began operations.
Q. HOW - AND HOW OFTEN - MAY I WITHDRAW CASH FROM MY ACCOUNT?
A. You may withdraw all or any part of your investment from your account in any
of the three money market funds at any time by: 1) simply writing a check (see
the following section); 2) calling American FundsLine; 3) contacting your
securities dealer; or 4) contacting American Funds Service Company. You can
also set up an automatic withdrawal program and take out $50 or more four to 12
times a year, depending on your balance.
Q. WHAT IS THE CHECK-WRITING PRIVILEGE AND HOW DOES IT WORK? IS THERE A CHARGE
FOR CHECK WRITING?
A. The funds offer a free service that allows you to write checks for $250 or
more against your account. Your money continues to earn daily interest until
checks clear the funds' bank in New York state. To request this service, please
call American Funds Service Company.
Q. MAY I EXCHANGE MY MONEY MARKET FUND SHARES FOR SHARES OF OTHER FUNDS IN THE
AMERICAN FUNDS GROUP?
A. Yes. Many shareholders use this service to gradually move some of their
holdings into longer term investments in The American Funds Group. When done on
a consistent schedule, this investment technique is known as dollar cost
averaging (see the box below). A sales charge may apply when you purchase other
fund shares.
Automatic exchanges can be made in amounts of $50 or more. You may also have
dividends from any of the three money market funds reinvested (without sales
charge) into any of the other American Funds - or vice versa. For details, and
for certain restrictions that may apply, please call American Funds Service
Company. Exchanges constitute a sale and purchase for tax purposes.
Q. HOW WILL I KNOW HOW MUCH I'M EARNING AT ANY GIVEN TIME?
A. For a current yield quotation, please call toll-free 800/421-8068. Yields
are also listed in the newspaper once a week, typically on Fridays. You may
check your share balance around the clock with American FundsLine.
Q. HOW CAN THE FUNDS PROVIDE DIVERSIFICATION IN MY INVESTMENT PORTFOLIO?
A. Many investment professionals believe that to meet long-term goals it is
necessary to allocate assets among several different types of investments,
including stocks, bonds and short-term savings vehicles such as money market
funds. A money market fund's role in a long-term investment program is to add
stability and balance and to provide a base from which funds can be moved into
other investments.
The services described here are subject to change or termination.
{Side Bar]
Q. WHAT IS DOLLAR COST AVERAGING?
A. Dollar cost averaging is an investment program that lets you use stock or
bond market volatility to your advantage. Here's how it works: You invest a
consistent amount in a stock or bond fund at regular intervals, such as once a
month or every quarter. Many shareholders use funds from their money market
accounts to practice this technique. As the market rises and falls, you may be
able to purchase shares at a lower average cost than the average share price.
Why? Because you purchase more shares when prices are down and fewer when
they're up.
When stock or bond share prices fluctuate...
...use dollar cost averaging to lower your average purchase price.
Total shares acquired: 82.3
Total cost of shares: $1,200
Average share price during period: $15.17
(Share price for each month added together
[$182] and divided by 12 investments)
Dollar cost averaging share price: $14.58
($1,200 divided by 82.3 shares)
Obviously, this example greatly exaggerates the volatility of most investments
- - but it does illustrate why the concept works. You should keep in mind that
dollar cost averaging neither ensures a profit nor protects against loss, and
its success depends largely on your willingness to continue purchases through
periods of declining prices.
[End Side Bar}
The Cash Management Trust of America
Investment Portfolio - September 30, 1995
<TABLE>
<CAPTION>
Principal Market
Yield at Amount Value
Acquisition (000) (000)
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 10.21%
ABN-AMRO Bank, NV (Netherlands)
5.780% October 24, 1995 5.75% $10,000 $10,000
5.750% November 6, 1995 5.68 30,000 30,002
Bank of Montreal
5.760% October 11, 1995 5.77 45,000 45,000
Canadian Imperial Bank of Commerce
5.700% November 16, 1995 5.70 20,000 20,000
5.780% October 18, 1995 5.78 15,000 15,000
Morgan Guaranty Trust Co. of New York
5.720% November 21, 1995 5.70 50,000 50,000
5.720% November 22, 1995 5.70 20,000 20,001
National Westminster Bank PLC
5.760% October 31, 1995 5.75 20,000 20,000
5.690% November 21, 1995 5.74 20,000 19,998
5.740% November 27, 1995 5.77 20,000 19,999
Societe Generale, Paris
5.770% October 5, 1995 5.76 15,000 15,000
5.770% October 6, 1995 5.76 5,000 5,000
5.770% October 10, 1995 5.77 20,000 20,000
5.740% November 15, 1995 5.70 10,000 10,000
Wells Fargo Bank
6.000% October 2, 1995 6.00 5,763 5,763
-------
Total Certificates of Deposit 305,763
COMMERCIAL PAPER - 87.68%
A.I. Credit Corp.
October 31, 1995 5.74 15,000 14,926
AIG Funding, Inc.
October 19, 1995 5.73 46,700 46,560
October 20, 1995 5.75 20,376 20,312
October 31, 1995 5.74 17,880 17,792
American Express Credit Corp.
October 3, 1995 5.75 10,000 9,995
October 19, 1995 5.78 10,000 9,970
November 9, 1995 5.75 15,000 14,905
November 14, 1995 5.78 12,500 12,412
American General Corp.
October 12, 1995 5.78 10,000 9,981
November 3, 1995 5.74 15,000 14,919
November 8, 1995 5.75 15,000 14,907
American General Financial Corp.
October 6, 1995 5.76 20,000 19,982
American Telephone and Telegraph Co.
October 27, 1995 5.74 40,000 39,829
Arco Coal Australia Inc.
October 4, 1995* 5.76 20,875 20,862
Associates Corp. of North America
October 2, 1995 6.61 59,120 59,098
Avco Financial Corp.
October 4, 1995 5.76 25,000 24,985
Bank of Montreal Corp.
October 16, 1995 5.78 20,000 19,949
Bell Atlantic Finacial Services Corp.
October 23, 1995 5.73 25,000 24,909
October 27, 1995 5.73 25,000 24,893
Beneficial Corp.
October 12, 1995 5.77 30,000 29,944
October 27, 1995 5.77 10,000 9,957
November 20, 1995 5.78 20,000 19,838
Canadian Imperial Holdings Inc.
November 1, 1995 5.75 25,000 24,873
November 24, 1995 5.73 25,000 24,783
Chevron Oil Finance Co.
October 5, 1995 5.74 25,000 24,980
October 10, 1995 5.74 25,000 24,962
October 11, 1995 5.74 25,000 24,956
October 13, 1995 5.76 15,000 14,969
Chevron Transport Corp.
October 3, 1995* 5.76 4,000 3,998
CIT Group Holdings Corp.
October 4, 1995 5.76 20,000 19,987
October 19, 1995 5.77 20,000 19,940
November 3, 1995 5.75 40,000 39,784
Commercial Credit Co.
October 25, 1995 5.76 30,000 29,881
November 8, 1995 5.76 20,000 19,876
CPC International Inc.
October 20, 1995* 5.77 15,800 15,750
John Deere Capital Corp.
October 5, 1995 5.75 15,000 14,988
October 12, 1995 5.78 25,000 24,952
November 7, 1995 5.74 20,000 19,880
E.I. du Pont de Nemours & Co.
October 5, 1995 5.73 50,000 49,962
October 6, 1995 5.73 3,500 3,497
October 17, 1995 5.74 15,000 14,961
October 19, 1995 5.74 25,000 24,925
Emerson Electric Co.
October 3, 1995 5.72 4,500 4,498
October 26, 1995 5.73 22,771 22,678
November 9, 1995 5.75 20,000 19,873
Exxon Imperial U.S. Inc.
October 2, 1995* 5.74 18,142 18,136
Ford Motor Credit Co.
October 3, 1995 5.76 6,900 6,897
October 10, 1995 5.76 10,000 9,984
October 13, 1995 5.76 15,000 14,969
October 17, 1995 5.77 20,000 19,946
November 8, 1995 5.75 20,000 19,876
November 20, 1995 5.75 30,000 29,759
General Electric Capital Corp.
October 2, 1995 5.75 15,000 14,995
October 5, 1995 5.75 15,000 14,988
October 6, 1995 5.75 25,000 24,976
October 13, 1995 5.78 20,000 19,959
November 1, 1995 5.76 20,000 19,899
November 17, 1995 5.72 10,000 9,924
Glaxo Wellcome PLC
October 20, 1995 5.78 15,000 14,952
October 24, 1995* 5.75 10,000 9,963
October 27, 1995* 5.77 8,800 8,762
H.J. Heinz Co.
October 3, 1995 5.75 20,000 19,991
October 20, 1995 5.73 9,000 8,972
October 24, 1995 5.74 30,000 29,886
November 6, 1995 5.78 16,000 15,906
Kimberly-Clark Corp.
October 31, 1995 5.75 6,500 6,468
November 8, 1995 5.79 20,000 19,875
Eli Lilly & Co.
October 2, 1995 5.74 15,000 14,995
October 11, 1995* 5.75 20,000 19,966
October 13, 1995 5.78 13,000 12,973
October 16, 1995 5.74 15,000 14,962
October 17, 1995* 5.76 25,000 24,933
Motorola Inc.
October 3, 1995 5.74 34,500 34,485
October 23, 1995 5.73 30,000 29,891
National Rural Utilities
Cooperative Finance Corp.
October 10, 1995 5.76 20,000 19,969
October 12, 1995 5.76 20,000 19,962
October 18, 1995 5.76 10,000 9,973
October 19, 1995 5.76 10,000 9,970
October 23, 1995 5.76 10,000 9,964
PACCAR Financial Corp.
October 3, 1995 5.76 11,400 11,395
October 26, 1995 5.74 3,000 2,988
J.C. Penny Funding Corp.
October 3, 1995 5.75 15,000 14,993
October 18, 1995 5.76 15,000 14,957
October 26, 1995 5.73 3,942 3,926
October 30, 1995 5.74 20,000 19,905
November 2, 1995 5.74 50,000 49,739
PepsiCo, Inc.
October 6, 1995 5.74 29,300 29,272
October 23, 1995 5.74 12,000 11,956
October 25, 1995 5.71 3,300 3,288
October 26, 1995 5.74 5,000 4,980
November 3, 1995 5.73 15,400 15,317
November 6, 1995 5.74 4,300 4,275
November 13, 1995 5.79 20,000 19,860
Pfizer Inc.
October 2, 1995* 5.74 17,116 17,112
November 2, 1995* 5.73 30,000 29,844
Pitney Bowes Credit Corp.
November 9, 1995 5.72 23,804 23,654
Procter & Gamble Co.
November 9, 1995 5.74 20,000 19,873
Rockwell International Corp.
November 13, 1995* 5.70 15,000 14,897
Safeco Credit Co. Inc.
October 26, 1995 5.74 14,000 13,942
St. Paul Companies Inc.
October 4, 1995* 5.74 20,000 19,988
Shell Oil Co.
October 11, 1995 5.76 20,000 19,936
October 13, 1995 5.76 40,100 40,019
Societe Generale N.A. Inc.
Octpber 20, 1995 5.77 20,000 19,937
Southwestern Bell Capital Corp.
October 4, 1995 5.77 7,020 7,016
October 10, 1995 5.77 4,585 4,578
November 27, 1995 5.77 25,000 24,770
Southwestern Bell Telephone Co.
October 5, 1995* 5.73 5,000 4,996
October 25, 1995* 5.73 20,000 19,921
November 15, 1995* 5.79 18,100 17,967
Texaco Inc.
October 4, 1995 5.75 25,000 24,984
Toys "R" Us, Inc.
October 2, 1995 5.73 30,000 29,991
October 27, 1995 5.73 12,250 12,198
November 7, 1995 5.75 23,000 22,862
UBS Finance (Deleware) Inc.
October 2, 1995 6.50 100,000 99,965
United Parcel Service of America
October 6, 1995 5.74 30,000 29,972
U S WEST Communications, Inc.
October 23, 1995 5.73 24,500 24,411
October 24, 1995 5.72 40,000 39,848
November 3, 1995 5.74 36,000 35,806
Vermont American Corp.
October 30, 1995* 5.74 35,504 35,336
Wal-Mart Stores, Inc.
October 16, 1995 5.74 72,000 71,819
October 20, 1995 5.75 20,000 19,937
October 30, 1995 5.73 10,000 9,953
Xerox Corp.
October 18, 1995 5.73 38,000 37,892
October 19, 1995 5.75 5,000 4,985
October 25, 1995 5.76 12,000 11,953
October 26, 1995 5.75 9,000 8,963
November 17, 1995 5.70 25,000 24,812
November 28, 1995 5.76 10,000 9,907
Yale University
October 30, 1995 5.75 15,000 14,930
--------
Total Commercial Paper 2,626,829
FEDERAL AGENCY DISCOUNT NOTES - 1.16%
Federal Home Loan Mortgage Corp.
November 1, 1995 5.67 15,000 14,925
Federal National Mortgage Assn.
November 2, 1995 5.67 20,000 19,897
---------
Total Federal Agency Discount Notes 34,822
---------
Total Investment Securities
(Cost: $2,967,416,000) 2,967,414
Excess of cash and receivables over
payables 28,358
---------
Net Assets $2,995,772
=========
</TABLE>
*Restricted securities requiring sale to institutional investors
See Notes to Financial Statements.
Cash Management Trust of America
Financial Statements
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 1995 (dollars in thousands)
- ---------------------------------------- ------------ ------------
<S> <C> <C>
ASSETS:
Investment securities at market
(COST: $2,967,416) $2,967,414
Cash 10,271
Receivables for-
Sales of fund's shares $36,941
Accrued interest 1,255 38,196
------------ ------------
3,015,881
LIABILITIES:
Payables for-
Repurchases of fund's shares 17,931
Dividends payable 833
Management services 803
Accrued expenses 542 20,109
------------ ------------
NET ASSETS AT SEPTEMBER 30, 1995-
EQUIVALENT TO $1.00 PER SHARE ON
2,995,758,720 SHARES OF BENEFICIAL
INTEREST ISSUED AND OUTSTANDING;
UNLIMITED SHARES AUTHORIZED $2,995,772
=============
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1995 (dollars in thousands)
------------ ------------
INVESTMENT INCOME:
Income:
Interest $ 166,874
EXPENSES:
Management services fee $9,526
Distribution expenses 2,083
Transfer agent fee 3,759
Reports to shareholders 212
Registration statement and prospectus 469
Postage, stationery and supplies 830
Trustees' Fees 35
Auditing and legal fees 50
Custodian fee 85
Taxes other than federal income tax 46 17,095
------------ ------------
Net investment income 149,779
------------
UNREALIZED DEPRECIATION ON
INVESTMENTS:
Net unrealized appreciaion
(depreciation) on investments:
Beginning of year 2
End of year (1)
------------
Net unrealized depreciation on
investments (3)
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $149,776
============
STATEMENT OF CHANGES IN NET
ASSETS (dollars in thousands)
- ---------------------------------------- ------------- -------------
YEAR ENDED SEPTEMBER 30
1995 1994
OPERATIONS: ------------- -------------
Net investment income $ 149,779 $ 74,177
NET UNREALIZED (DEPRECIATION)
appreciation on investments (3) 1
------------- -------------
NET INCREASE IN NET ASSETS
resulting from operations 149,776 74,178
------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS (149,784) (74,177)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
8,806,146,594 AND 8,278,211,910
shares, respectively 8,806,146 8,278,212
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
136,777,196 and 67,071,094 shares,
respectively 136,777 67,071
Cost of shares repurchased:
8,684,653,956 and 7,547,398,432
shares, respectively (8,684,654) (7,547,398)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING
from capital share transactions 258,269 797,885
------------- -------------
TOTAL INCREASE IN NET ASSETS 258,261 797,886
NET ASSETS:
Beginning of year 2,737,511 1,939,625
------------- -------------
End of year $2,995,772 $2,737,511
============= =============
</TABLE>
See Notes to Financial Statements
Notes to Financial Statements
1. The Cash Management Trust of America (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
The fund uses the penny-rounding method of valuing its shares, in
accordance with Securities and Exchange Commission (SEC) rules. This method
permits the fund to maintain a constant net asset value of $1.00 per share,
provided the market value of the fund$s shares does not deviate from $1.00 by
more than one-half of 1% and the fund complies with other restrictions set
forth in the SEC rules.
Portfolio securities with 60 days or less to maturity are valued at
amortized cost, which approximates markrt value. Portfolio securities with
original or remaining maturities in excess of 60 days are valued at prices
obtained from a bond-pricing service provided by a major dealer in bonds, when
such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean of their representative quoted bid and asked prices or, if such prices are
not available, at the mean of such prices for securities of comparable
maturity, quality and type. The maturities of variable or floating rate
instruments are deemed to be the time remaining until the next interest rate
adjustment date. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith by the Valuation
Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Interest income is reported on the accrual basis. Dividends are
declared on a daily basis after the determination of the fund's net investment
income and paid to shareholders on a monthly basis. Discounts and premiums on
securities purchased are amortized over the life of the respective securities.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of September 30, 1995, unrealized depreciation for book and federal
income tax purposes aggregated $1,000 which related to depreciated securities.
There was no difference between book and tax realized gains on securities
transactions. for the year ended September 30, 1995. The cost of portfolio
securities for book and federal income tax purposes was $2,967,416,000 at
September 30, 1995.
3. The fee of $9,526,000 for investment management services was paid pursuant
to an agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.365% of the first $275 million of average net assets and
0.3285% of such assets in excess of $275 million.
Pursuant to a Plan of Distribution with American Funds Distributors, Inc.
(AFD), the fund may expend up to 0.15% of its average net assets annually for
any activities primarily intended to result in sales of fund shares, provided
the categories of expenses for which reimbursement is made are approved by the
fund's Board of Trustees. Fund expenses under the Plan include payments to
dealers to compensate them for their selling and servicing efforts. During the
year ended September 30, 1995, distribution expenses under the plan amounted to
$2,083,000. As of September 30, 1995, accrued and unpaid distribution expenses
were $111,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $3,759,000 under the terms of a contract that provides for
transfer agency services to be performed for the fund.
Trustees who are unaffiliated with CRMC may elect to defer part or all of
the fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of September 30,
1995, aggregate amounts deferred were $18,000.
CRMC is owned by The Capital Group, Inc. AFS and AFD are wholly owned
subsidiaries of CRMC. Certain of the Trustees and officers of the fund are or
may be considered to be affiliated with CRMC, AFS and AFD. No such persons
received any remuneration directly from the fund.
4. The fund made purchases and sales of investment securities of
$62,785,691,000 and $62,715,642,000, respectively, during the year ended
September 30, 1995.
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
Year Ended September 30
------ ------ ------ ------ ------
1995 1994 1993 1992 1991
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Year...................... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
Operations:
Net investment income....... .052 .031 .025 .036 .061
Total income from investment ------ ------ ------ ------ ------
operations................ .052 .031 .025 .036 .061
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income...................... (0.052) (0.031) (0.025) (0.036) (0.061)
------ ------ ------ ------ ------
Total distributions........ (0.052) (0.031) (0.025) (0.036) (0.061)
------ ------ ------ ------ ------
Net Asset Value, End of Year.. 1.000 1.000 1.000 1.000 1.000
====== ====== ====== ====== ======
Total Return................. 5.34% 3.10% 2.57% 3.64% 6.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in
millions)................... $2,996 $2,738 $1,940 $2,090 $2,134
Ratio of expenses to average
net assets.................. .60% .68% .65% .63% .61%
Ratio of net income to
average net assets.......... 5.21% 3.14% 2.57% 3.59% 6.12%
</TABLE>
- ----------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of The Cash Management Trust of
America
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Cash Management Trust of
America (the "Fund") at September 30, 1995, the results of its operations, the
changes in its net assets and the per-share data and ratios for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1995 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Los Angeles, California
October 27, 1995
1995 TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund$s fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Certain states may exempt from income taxation a portion of the dividends
paid from net investment income if derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, none of the dividends
paid by the fund from net investment income was derived from interest on direct
U.S. Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh plans, and 403(b) plans need not be reported as taxable income. However,
many retirement trusts may need this information for their annual information
reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 1996 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR RESPECTIVE 1995 TAX RETURNS. SHAREHOLDERS
SHOULD CONSULT THEIR TAX ADVISERS.
THE CASH MANAGEMENT TRUST OF AMERICA
BOARD OF TRUSTEES
H. FREDERICK CHRISTIE
Palos Verdes Estates, California
Private investor; former President and Chief Executive Officer, The Mission
Group; former President, Southern California Edison Company
DIANE C. CREEL
Long Beach, California
Chairwoman, Chief Executive Officer and President, The Earth Technology
Corporation (environmental engineering)
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board, Senior Resource Group, Inc.
(senior living centers management)
LEONARD R. FULLER
Los Angeles, California
President, Fuller & Company, Inc.
(financial management consulting)
ABNER D. GOLDSTINE
Los Angeles, California
President
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR.
Los Angeles, California
Chairman of the Boards
Senior Vice President and Director,
Capital Research and Management Company
HERBERT HOOVER III
Pasadena, California
Private investor
RICHARD G. NEWMAN
Los Angeles, California
Chairman of the Board, President and Chief Executive Officer, AECOM Technology
Corporation (architectural engineering)
PETER C. VALLI
Long Beach, California
Chairman of the Board and Chief Executive Officer, BW/IP
International, Inc. (industrial
manufacturing)
THE U.S. TREASURY MONEY FUND OF AMERICA
OTHER OFFICERS
NEIL L. LANGBERG
Los Angeles, California
Senior Vice President,
The Tax-Exempt Money Fund of America
Vice President-Investment Management Group, Capital Research and Management
Company
TERESA S. COOK
Los Angeles, California
Vice President,
The Cash Management Trust of America and
The U.S. Treasury Money Fund of America
Senior Vice President-Investment Management Group, Capital Research and
Management Company
MARY C. CREMIN
Brea, California
Vice President and Treasurer
Senior Vice President-Fund Business Management Group, Capital Research and
Management Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President
Senior Vice President-Fund Business Management Group,
Capital Research and Management Company
SARAH P. LUCAS
Los Angeles, California
Assistant Vice President,
The Cash Management Trust of America and
The U.S. Treasury Money Fund of America
Assistant Vice President-Investment Management Group, Capital Research and
Management Company
JULIE F. WILLIAMS
Los Angeles, California
Secretary
Vice President-Fund Business Management Group,
Capital Research and Management Company
THE TAX-EXEMPT MONEY FUND OF AMERICA
KIMBERLY S. VERDICK
Los Angeles, California
Assistant Secretary
Assistant Vice President-Fund Business Management Group, Capital Research and
Management Company
NYMIA M. CUCUECO
Brea, California
Assistant Treasurer,
The Tax-Exempt Money Fund of America
Vice President-Fund Business Management Group,
Capital Research and Management Company
ANTHONY W. HYNES, JR.
Brea, California
Assistant Treasurer
Vice President-Fund Business Management Group, Capital Research and Management
Company
Leonard Weil retired from the Board effective December 31, 1994. He has
been a member of the Board of Trustees of The Cash Management Trust of America
since December 15, 1987, and of the Boards of The U. S. Treasury Money Fund of
America and The Tax-Exempt Money Fund of America since their inceptions. The
Trustees thank him for his many contributions to the funds.
Diane Creel and Leonard Fuller were elected Trustees effective September
22, 1994.
OFFICES OF THE FUNDS AND OF THE INVESTMENT ADVISER, CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUNDS'
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the funds. If used
as sales material after December 31, 1995, this report must be accompanied by
an American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA W/GRS/2757
Lit. No. MMF-01-1195
[The American Funds Group(R)]
