THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
SEMI-ANNUAL REPORT
for the six months ended March 31, 1996
[The American Funds Group(r)]
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in 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 AMERICAN FUNDSLINE(R) TOLL-FREE AT
800/325-3590; PRESS 1 FOR YIELD INFORMATION.
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. Income from The Tax-Exempt Money Fund of America may be subject to
state or local income taxes and/or federal alternative minimum taxes. Certain
other income, as well as capital gain distributions, may be taxable. Results
for The Tax-Exempt Money Fund of America reflect the effect of a fee waiver.
Without the waiver, the results would have been lower.
FELLOW SHAREHOLDERS:
As most of the country experienced a memorably long and cold winter, continued
low inflation and efforts to stimulate sluggish economic growth resulted in
declining short-term interest rates during most of the recent fiscal period. As
a result, yields of our money market funds during the past six months dropped
below the average for the previous six months.
In December and again in January, the Federal Reserve Board attempted to
stimulate growth by cutting the federal funds rate (the rate at which banks
lend to each other) by 0.25% each time. This had a direct impact on money
market yields. Since that time, reports that job creation and economic activity
were growing faster than anticipated have dampened expectations that the Fed
will cut rates again soon. Intermediate and long-term rates have climbed
sharply. Short-term rates, however, which declined until early February, rose
only modestly in March, the last month of the fiscal half-year.
Here are the results for each of our money market funds over the six months
ended March 31.
THE CASH MANAGEMENT TRUST OF AMERICA provided shareholders who reinvested their
dividends with a six-month income return of 2.58%, or an annualized rate of
5.16%.
THE U.S. TREASURY MONEY FUND OF AMERICA'S six-month income return was 2.34%,
including reinvested dividends, or 4.68% at an annual rate. This income is
exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA produced a federally tax-free income
return over the six-month period of 1.47% for shareholders who reinvested
dividends, or 2.94% at an annualized rate. Investors in the maximum 39.6%
federal tax bracket would have to earn a taxable return of 2.43% (4.86%
annualized) to match the fund's federally tax-free income return. In the 36%
tax bracket, the taxable equivalent would be 2.30% (4.60% annualized). A
portion of the fund's income may also be exempt from tax in some states.
The chart at left shows the quarterly pattern of yields on our three money
market funds over the past four years. While money market fund yields move up
and down with open market short-term rates, they can be an excellent source of
investment stability. Although these funds carry no price guarantee, they are
managed to maintain a net asset value of $1.00 a share. In contrast to stock
and bond funds, which fluctuate daily, this stability makes money market funds
an important tool in financial planning (see box below).
It is important to note that throughout the last 12 months, a period of
relatively low yields, all three of our money market funds outpaced the 2.84%
annualized increase in the Consumer Price Index, which measures changes in the
cost of living. Helping you maintain purchasing power is one of our main goals.
As assets in our three funds continue to grow, we would like to thank you for
trusting us to select the highest quality money market securities available and
to monitor your investments in these funds carefully.
Cordially,
Paul G. Haaga, Jr.
Chairman of the Boards
Abner D. Goldstine
President
May 15, 1996
WHETHER YOU ARE INVESTING FOR A HOME, A VACATION, A COLLEGE EDUCATION OR A
SECURE RETIREMENT, MONEY MARKET FUNDS CAN BE AN IMPORTANT PART OF A DIVERSIFIED
INVESTMENT PORTFOLIO. Here are three key roles a money market fund can play:
- - A STARTING POINT FOR REGULAR INVESTMENTS. Your money market fund can be set
up to make regular purchases of other mutual funds, allowing you to
conveniently diversify your investment portfolio.
- - AN EMERGENCY CASH RESERVE. Money market funds let you earn income on cash
reserves and easily redeem your assets by mail, telephone, systematic
withdrawals, electronic bank deposits and free check-writing privileges.
- - A SOLID FOUNDATION FOR YOUR FINANCIAL PROGRAM. You may choose to hold a
percentage of your financial assets in a money market fund for the preservation
of capital and the steady income it can provide.
<TABLE>
<S>
The Cash Management Trust of America
Investment Portfolio - Unaudited
March 31,1996
Principal Market
Yield at Amount Value
Acquisition (000) (000)
<S> <C> <C> <C>
Certificates of Deposit - 6.54%
Canadian Imperial Bank of Commerce
5.280% May 7, 1996 25,000 25,000
Morgan Guaranty Trust Co. of New York
5.230% April 2, 1996 50,000 50,000
5.240% April 9, 1996 50,000 50,000
National Westminster Bank PLC
5.190% April 22, 1996 15,000 15,000
5.190% April 22, 1996 25,000 25,000
5.180% April 30, 1996 30,000 29,999
Wells Fargo Bank
5.0% April 1, 1996 10,300 10,300
----------------
Total Certificates of Deposit 205,299
Commercial Paper - 87.07%
Albertson's Inc.
April 4, 1996 21,800 21,787
April 8, 1996 10,000 9,988
American Express Credit Corp.
April 10, 1996 20,000 19,971
April 12, 1996 20,000 19,966
April 18, 1996 30,000 29,923
April 26, 1996 15,000 14,944
American General Finance Corp.
May 23, 1996 20,000 19,844
Ameritech Capital Funding Corp.
April 9, 1996* 7,735 7,725
April 12, 1996* 6,310 6,299
May 20, 1996* 8,000 7,941
Ameritech Corp.
April 11, 1996 24,000 23,962
April 12, 1996 29,650 29,599
May 20, 1996 17,000 16,875
Associates Corp. of North America
April 1, 1996 91,600 91,586
Avco Financial Corp.
May 3, 1996 16,000 15,922
May 23, 1996 18,000 17,860
Baltimore Gas and Electric Co.
April 4, 1996 17,000 16,991
April 17, 1996 11,000 10,973
April 25, 1996 2,000 1,993
BellSouth Telecommunications Inc.
April 8, 1996 20,000 19,977
April 24, 1996 6,000 5,979
May 9, 1996 40,000 39,773
May 10, 1996 7,755 7,709
Beneficial Corp.
April 17, 1996 25,000 24,938
May 1, 1996 35,000 34,839
Campbell Soup Co.
April 10, 1996 19,750 19,721
May 17, 1996 25,000 24,827
Canadian Imperial Holdings Inc.
April 1, 1996 25,000 24,996
Chevron Oil Finance Co.
April 11, 1996 35,000 34,945
CIT Group Holdings Inc.
April 16, 1996 15,000 14,965
April 25, 1996 20,000 19,927
April 26, 1996 8,000 7,970
April 29, 1996 20,000 19,917
May 3, 1996 20,000 19,902
Commercial Credit Co.
April 3, 1996 20,000 19,991
April 29, 1996 30,000 29,871
John Deere Capital Corp.
April 17, 1996 15,000 14,963
April 19, 1996 25,000 24,932
April 24, 1996 25,000 24,914
E.I. du Pont de Nemours and Co.
April 10, 1996 25,000 24,964
April 12, 1996 5,000 4,991
Emerson Electric Co.
April 16, 1996 50,000 49,883
Ford Motor Credit Co.
April 4, 1996 20,000 19,988
May 1, 1996 25,000 24,887
May 2, 1996 50,000 49,764
May 8, 1996 30,000 29,832
General Electric Capital Corp.
April 16, 1996 25,000 24,942
April 17, 1996 25,000 24,939
April 25, 1996 20,000 19,929
May 6, 1996 20,000 19,896
May 16, 1996 35,000 34,763
Glaxo Wellcome PLC
April 23, 1996 25,000 24,916
May 17, 1996 25,000 24,829
H.J. Heinz Co.
April 1, 1996 18,000 17,997
April 18, 1996 18,000 17,953
April 29, 1996 55,000 54,776
IBM Credit Corp.
April 10, 1996 25,000 24,964
April 22, 1996 44,500 44,358
April 25, 1996 25,000 24,909
May 9, 1996 25,000 24,858
Kimberly-Clark Corp.
April 12, 1996 31,500 31,446
May 21, 1996 5,500 5,460
Eli Lilly and Co.
April 23, 1996 25,000 24,918
May 10, 1996 21,300 21,176
May 20, 1996 25,000 24,817
Motorola Inc.
April 3, 1996 40,000 39,983
April 11, 1996 15,000 14,976
April 19, 1996 22,000 21,939
National Australia Funding (Deleware) Inc.
May 8, 1996 45,000 44,752
May 17, 1996 5,000 4,966
J.C. Penny Funding Corp.
April 26, 1996 25,000 24,907
April 30, 1996 20,000 19,914
May 3, 1996 8,000 7,961
May 7, 1996 35,000 34,812
PepsiCo, Inc.
April 17, 1996 21,000 20,948
April 19, 1996 13,500 13,463
April 22, 1996 20,500 20,436
April 23, 1996 11,200 11,163
April 24, 1996 25,725 25,635
May 9, 1996 20,700 20,581
Pitney Bowes Credit Corp.
April 1, 1996 8,000 7,999
April 18, 1996 20,000 19,948
April 19, 1996 25,000 24,932
April 23, 1996 27,900 27,809
May 15, 1996 5,000 4,967
Rockwell International Corp.
April 30, 1996* 40,000 39,823
Safeco Credit Co. Inc.
April 2, 1996 5,500 5,498
April 12, 1996 15,000 14,974
April 26, 1996 19,000 18,927
Shell Oil Co.
April 15, 1996 50,000 49,892
April 16, 1996 9,400 9,378
May 10, 1996 40,000 39,765
Siemens Corp.
April 2, 1996 40,000 39,988
May 24, 1996 33,000 32,739
Southwestern Bell Telephone Co.
April 18, 1996 10,000 9,974
May 1, 1996 40,000 39,817
Toyota Motor Credit Corp.
April 8, 1996 10,000 9,988
May 2, 1996 25,000 24,881
May 3, 1996 11,500 11,443
May 13, 1996 25,000 24,841
Toys "R" Us, Inc.
April 1, 1996 19,200 19,197
May 6, 1996 23,000 22,877
UBS Finance (Delaware) Inc.
April 1, 1996 75,000 74,989
United Parcel Service of America
April 15, 1996 40,000 39,913
Wal-Mart Stores, Inc.
April 8, 1996 40,000 39,954
April 9, 1996 15,000 14,981
Weyerhauser Co.
April 9, 1996 22,000 21,971
April 11, 1996 15,500 15,475
April 12, 1996 8,900 8,885
April 18, 1996 14,000 13,964
May 16, 1996 15,000 14,899
Xerox Corp.
April 3, 1996 12,000 11,995
April 9, 1996 28,000 27,964
April 12, 1996 6,500 6,489
April 19, 1996 18,050 18,001
May 6, 1996 15,000 14,922
May 10, 1996 38,000 37,780
Yale University
April 3, 1996 28,000 27,988
--------------
Total Commercial Paper 2,731,623
Federal Agency Discount Notes - 6.13%
Federal Farm Credit Banks
April 24, 1996 22,000 21,925
April 26, 1996 21,370 21,291
Federal Home Loan Mortgage Corp.
April 23, 1996 18,843 18,781
Federal National Mortgage Assn.
April 4, 1996 57,800 57,767
April 11, 1996 14,730 14,707
April 24, 1996 25,000 24,912
April 26, 1996 10,000 9,963
May 1, 1996 10,000 9,954
May 24, 1996 13,180 13,076
--------------
Total Federal Agency Discount Notes 192,376
--------------
Total Investment Securities
(Cost: $3,129,284,000) 3,129,298
Excess of cash and receivables over
payables 7,905
--------------
Net Assets $3,137,203
==============
*Restricted securities requiring sale to
institutional investors. Deemed to be as
liquid as unrestricted securities in the
portfolio.
See Notes to Financial Statements.
</TABLE>
<TABLE>
Cash Management Trust of America
Financial Statements *
- ---------------------------------------- ------------------- -------------
Statement of Assets and Liabilities
at March 31, 1996 (dollars in thousands)
- ---------------------------------------- ----------------- -------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $3,129,284) $3,129,298
Cash 3,642
Receivables for-
Sales of fund's shares $46,180
Accrued interest 1,026 47,206
-------------- -------------
3,180,146
Liabilities:
Payables for-
Repurchases of fund's shares 41,515
Dividends payable 739
Management services 689 42,943
-------------- -------------
Net Assets at March 31, 1996-
Equivalent to $1.00 per share on
3,137,189,951 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $3,137,203
=============
Statement of Operations *
for the six months
ended March 31, 1996 (dollars in thousands)
-------------- -------------
Investment Income:
Income:
Interest $ 83,917
Expenses:
Management services fee $4,934
Distribution expenses 1,077
Transfer agent fee 2,082
Reports to shareholders 57
Registration statement and prospectus 28
Postage, stationery and supplies 56
Trustees' Fees 14
Auditing and legal fees 49
Custodian fee 29 8,326
-------------- -------------
Net investment income 75,591
-------------
Unrealized Appreciation
on Investments:
Net realized gain 0
Net unrealized (depreciation)
appreciation on investments:
Beginning of period (1)
End of period 14
--------------
Net unrealized appreciation on
investments 15
------------
Net realized gain and unrealized
depreciation on investments 15
-------------
Net Increase in Net Assets Resulting
from Operations $75,606
=============
* Unaudited
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------- -------------
Six months Year ended
ended
3/31/96 * 9/30/95
Operations: ------------- -------------
Net investment income $ 75,591 $ 149,779
Net realized gain on investments 0 0
Net unrealized appreciation
(depreciation) on investments 15 (3)
------------- -------------
Net increase in net assets
resulting from operations 75,606 149,776
------------- -------------
Dividends Paid to Shareholders (75,606) (149,784)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
5,266,950,963 and 8,806,146,594
shares, respectively 5,266,951 8,806,146
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
69,115,480 and 136,777,196 shares,
respectively 69,115 136,777
Cost of shares repurchased:
5,194,635,211 and 8,684,653,956
shares, respectively (5,194,635) (8,684,654)
------------- -------------
Net increase in net assets resulting
from capital share transactions 141,431 258,269
------------- -------------
Total Increase in Net Assets 141,431 258,261
Net Assets:
Beginning of period 2,995,772 2,737,511
------------- -------------
End of period $3,137,203 $2,995,772
============= =============
</TABLE>
* Unaudited
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 fund seeks to provide income on cash reserves, while
preserving capital and maintaining liquidity, through investments in
high-quality money market instruments. 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 market 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 March 31, 1996, unrealized appreciation for book and federal income
tax purposes aggregated $14,000, which related to appreciated securities.
There was no difference between book and tax realized gains on securities
transactions. for the six months ended March 31, 1996. The cost of portfolio
securities for book and federal income tax purposes was $3,129,284,000 at March
31, 1996.
3. The fee of $4,934,000 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
six months ended March 31, 1996, distribution expenses under the plan amounted
to $1,077,000. As of March 31, 1996, accrued and unpaid distribution expenses
were $116,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,082,000 under the terms of a contract that provides for
transfer agency services to be performed for the fund.
Trustees of the fund 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 March 31, 1996, aggregate amounts deferred and earnings thereon were
$20,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain 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
$5,635,282,000 and $5,508,862,000, respectively, during the six months ended
March 31, 1996.
<TABLE>
PER-SHARE DATA AND RATIOS
- ------------------------------ -------------- -------- ------ -------- -------- --------
Six Months Year Ended September 30
-------------- -------- ------ -------- -------- --------
ended 3/31/96 1 1995 1994 1993 1992 1991
-------------- -------- ------ -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period...................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------------- -------- ------ -------- -------- --------
Income from Investment
Operations:
Net investment income....... .026 .052 .031 .025 .036 .061
Total income from investment -------------- -------- -------- -------- -------- --------
operations................ .026 .052 .031 .025 .036 .061
-------------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income........... (0.026) (0.052) (0.031) (0.025) (0.036) (0.061)
-------------- -------- -------- -------- -------- --------
Total distributions........ (0.026) (0.052) (0.031) (0.025) (0.036) (0.061)
-------------- ------- -------- -------- -------- --------
Net Asset Value, End of Period.. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============== ============ ============ ============ ============ ========
Total Return................. 2.58% 2 5.34% 3.10% 2.57% 3.64% 6.26%
Ratios/Supplemental Data:
Net assets, end of period (in
millions)................... $3,137 $2,996 $2,738 $1,940 $2,090 $2,134
Ratio of expenses to average
net assets.................. .28% 2 .60% .68% .65% .63% .61%
Ratio of net income to
average net assets.......... 2.54% 2 5.21% 3.14% 2.57% 3.59% 6.12%
1 Unaudited
2 Based on operations for the
period shown and, accordingly,
are not representative of a
full year's operations.
</TABLE>
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 LLP
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUNDS' 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 June 30, 1996, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
[The American Funds Group(r)]
Litho in U.S.A. AGD/CG/2953
Lit. No. MMF-013-0596
Printed on recycled paper
