PROFILE PROSPECTUS
THE CASH MANAGEMENT TRUST OF AMERICA(R)
May 15, 1996
[The American Funds Group(R)]
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THE CASH MANAGEMENT TRUST OF AMERICA(R)
333 South Hope Street May 15, 1996
Los Angeles, CA 90071
1. GOALS
The fund seeks to provide you with income from your ready cash reserves while
preserving their value and liquidity.
2. INVESTMENT STRATEGIES
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 mature in no more than one
year from the date of purchase, and the fund's average maturity is 30 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 INSURED OR 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
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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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(based on a percentage of average net assets as of September 30, 1995)
Management fees........................0.33%
12b-1 expenses.........................0.07%
Other expenses.........................0.20%
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Total fund operating expenses..........0.60%
EXAMPLE
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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 $ 6
THREE YEARS 19
FIVE YEARS 33
TEN YEARS 75
6. PAST RESULTS
Here are the fund's annual total returns for each of the past 10 calendar
years:
[CHART]
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
1995 5.5
[END CHART]
The fund's annualized yield for the 7-day period ended April 30, 1996 was
4.89%. You may obtain current yield information by calling 800/421-8068. PAST
RESULTS ARE NOT A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
<S> <C> <C>
AVERAGE ANNUAL
COMPOUND RETURNS*
FUND IBC INDEX**
One year +5.39% +5.28%
Five years +3.99% +4.05%
Ten years +5.67% +5.53%
*For periods ended March 31, 1996
** IBC Taxable Money Market Funds Average Index
</TABLE>
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.
All dividends (and capital gains, if any) are taxable whether they are
reinvested or received in cash - unless you are exempt from taxation or
entitled to tax deferral. Early each year, you will be notified as to the
amount and federal tax status of all distributions paid during the prior year.
Such distributions may also be subject to state or local taxes.
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. IF YOU WOULD LIKE MORE
INFORMATION BEFORE YOU INVEST, PLEASE CONSULT THE FUND'S PROSPECTUS. FOR
DETAILS ABOUT THE FUND'S HOLDINGS OR RECENT INVESTMENT STRATEGIES, PLEASE
REVIEW THE FUND'S MOST RECENT ANNUAL OR SEMI-ANNUAL REPORT. THE PROSPECTUS AND
REPORTS MAY BE OBTAINED AT NO COST BY CALLING 800/421-0180.
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