[The American Funds Group (R)]
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, 1997
USING YOUR MONEY MARKET FUND TO HELP MEET YOUR FINANCIAL GOALS
[illustration: piggy bank, baby carriage, house, coins, suitcase]
[watermark: ANNUAL REPORT 1997 GOALS FUND]
ANNUAL REPORT
THE CASH MANAGEMENT TRUST OF AMERICA
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 short-term money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA
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
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 with effective maturities of
one year or less.
The Cash Management Trust of America, The U.S. Treasury Money Fund of America
and the Tax-Exempt Money Fund of America are three of the 28 funds in The
American Funds Group (R), managed by Capital Research and Management Company.
Since 1931, Capital has invested with a long-term focus based on thorough
research and attention to risk.
SEVEN-DAY ANNUALIZED RATES /1/
For the months ended September 30, 1992 - September 30, 1997
[begin mountain chart]
<TABLE>
<CAPTION>
The Tax-Exempt The Tax-Exempt
Money Fund of Money Fund of
The Cash The U.S. Treasury America (taxable America
Management Trust Money Fund of equivalent (federally
Date of America America /2/ yield)/3/ tax-free)
<S> <C> <C> <C> <C>
September 1992 2.57 2.65 3.92 2.37
October 1992 2.49 2.49 3.49 2.11
November 1992 2.62 2.41 3.54 2.14
December 1992 2.90 2.55 3.81 2.30
January 1993 2.69 2.60 3.10 1.87
February 1993 2.54 2.58 3.23 1.95
March 1993 2.46 2.48 2.98 1.80
April 1993 2.47 2.44 2.96 1.79
May 1993 2.44 2.41 3.18 1.92
June 1993 2.51 2.41 2.88 1.74
July 1993 2.51 2.44 3.10 1.87
August 1993 2.47 2.47 2.98 1.80
September 1993 2.44 2.40 3.43 2.07
October 1993 2.43 2.39 3.03 1.83
November 1993 2.50 2.41 3.06 1.85
December 1993 2.60 2.47 3.41 2.06
January 1994 2.52 2.51 2.58 1.56
February 1994 2.47 2.42 2.95 1.78
March 1994 2.80 2.56 2.76 1.67
April 1994 3.02 2.82 3.43 2.07
May 1994 3.45 2.99 3.63 2.19
June 1994 3.64 3.20 3.49 2.11
July 1994 3.84 3.46 3.61 2.18
August 1994 3.98 3.61 4.01 2.42
September 1994 4.17 3.86 4.24 2.56
October 1994 4.40 4.02 4.40 2.66
November 1994 4.63 4.33 4.90 2.96
December 1994 5.34 4.78 6.21 3.75
January 1995 5.35 4.85 4.88 2.95
February 1995 5.46 4.98 5.71 3.45
March 1995 5.57 5.15 5.51 3.33
April 1995 5.54 5.13 5.86 3.54
May 1995 5.52 5.07 5.76 3.48
June 1995 5.44 5.03 5.20 3.14
July 1995 5.31 4.98 4.64 2.80
August 1995 5.29 4.86 4.97 3.00
September 1995 5.26 4.86 5.28 3.19
October 1995 5.27 4.85 5.15 3.11
November 1995 5.30 4.75 5.17 3.12
December 1995 5.14 4.68 5.56 3.36
January 1996 5.08 4.62 4.55 2.75
February 1996 4.78 4.43 4.44 2.68
March 1996 4.77 4.41 4.42 2.67
April 1996 4.89 4.53 4.78 2.89
May 1996 4.79 4.39 4.85 2.93
June 1996 4.77 4.47 4.64 2.80
July 1996 4.80 4.53 4.64 2.80
August 1996 4.76 4.53 4.67 2.82
September 1996 4.82 4.57 4.85 2.93
October 1996 4.75 4.50 4.65 2.81
November 1996 4.72 4.44 4.77 2.88
December 1996 4.87 4.38 5.02 3.03
January 1997 4.77 4.39 4.64 2.80
February 1997 4.63 4.40 4.55 2.75
March 1997 4.85 4.69 4.54 2.74
April 1997 5.06 4.86 5.15 3.11
May 1997 5.11 4.87 5.12 3.09
June 1997 5.13 4.76 5.18 3.13
July 1997 5.05 4.78 5.03 3.04
August 1997 5.04 4.67 4.85 2.93
September 1997 5.07 4.45 5.15 3.11
</TABLE>
[end mountain chart]
/1/Equivalent to Securities and Exchange Commission yield.
/2/Since income paid by The U.S. Treasury Money Fund of America is exempt from
state and local taxes in most states, the fund's taxable equivalent yield would
be higher than the rates indicated in the chart.
/3/Represents the fund's taxable equivalent yield calculated at the maximum
39.6% federal tax rate.
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 AND ARE NOT PREDICTIVE OF
FUTURE 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.
FELLOW SHAREHOLDERS
Fiscal 1997 was marked by continued strength in the U.S. stock market and
stability in short-term securities. Both markets reflected the economy's
extraordinary ability to sustain its healthy expansion, with unemployment at
its lowest level in 24 years yet with no pickup in inflation.
Three factors are credited with making the expansion possible. The federal
government's efforts to curtail budget deficits have dampened inflationary
expectations and lowered long-term interest rates. With the cost of borrowing
reduced, businesses have beefed up their investments in technology and
equipment, contributing to recent increases in production capacity and
efficiency. Finally, global competition - spurred on by a strong dollar, which
makes imports cheaper to U.S. consumers - has kept a tight lid on prices.
Whether or not the economy can continue along its tranquil path is anyone's
guess, particularly in light of the recent sharp swing in the U.S. stock
market. As usual, there are varying opinions concerning whether the factors
that produced the smooth climb in business activity will hold.
THE FUNDS' RESULTS
When the Federal Reserve raised the federal funds rate (the rate banks charge
each other for overnight loans) from 5.25% to 5.50% in March, the yields on
short-term instruments immediately moved upward. Since then, short-term rates
have remained relatively flat. Interestingly, the returns of each of the three
money market funds over the 12-month period ended September 30 almost exactly
matched the returns they earned over the previous fiscal year.
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 5.03% with
dividends reinvested, compared to 5.06% for fiscal 1996.
THE U.S. TREASURY MONEY FUND OF AMERICA produced a 12-month income return of
4.71% including reinvested dividends - only 0.05% higher than a year ago, when
the return was 4.66%. Because all of the fund's earnings are derived from
investments in U.S. Treasury securities, the income paid by the fund is exempt
from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA generated a federally tax-free income
return of 2.94% with dividends reinvested. That's equivalent to a return of
4.87% for investors in the 39.6% federal tax bracket. A portion of this income
may also be exempt from state and local taxes. One year ago, the fund's income
return was 2.91% and its taxable equivalent return was 4.82%.
A USEFUL INVESTMENT
This year, as in the past few years, the funds provided positive
inflation-adjusted returns. (During the fiscal year, the inflation rate was
2.2%.) They also continued to offer a stable principal value so your money was
there when you needed it.
If you turn to the feature that begins on page 2, you'll find another reason
why the funds make sense as part of a complete financial program: They can
help you meet your short-term financial goals. We hope you'll find the
information in the article useful.
Thank you for selecting an American Funds money market fund for your investment
portfolio. We look forward to reporting to you again in six months.
Cordially,
/s/Paul G. Haaga, Jr. /s/Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
November 14, 1997
USING YOUR MONEY MARKET FUND TO HELP MEET YOUR FINANCIAL GOALS.
[illustrations: piggy bank]
Ah, your old ceramic piggy bank. Home for stray pennies, quarters from the
tooth fairy and a few dollar bills from grandma or a newspaper route. Keeper of
childhood dreams: a skateboard, a tea set, a Sting Ray bike.
That bike may have disappeared at a yard sale years ago (along with the ceramic
pig), but one thing hasn't changed: You still have dreams to save for. Your
visions of skates and science kits have been replaced by thoughts of a new
family member, a first home, a small business venture, maybe a wedding or a
special vacation for two.
How can you pay for such dreams? With a short-term investment program designed
to meet your goal. Many people use their money market fund as a place to keep
cash for emergencies or monthly bills.
Others look to their fund to provide diversification and stability to a
long-term investment program, such as a retirement plan. But your money market
fund can also play an integral role in a program that is targeted to meet
short-term goals. Setting up an investment program can be simple if you follow
three basic steps:
* Find out how much your goal will cost.
* Select a portfolio that's suitable for your investment period and risk
tolerance.
* Calculate how much to invest.
On the opposite page you'll find some tools to help you figure what it will
take to reach one goal that is frequently only a few years in the future:
buying a home. But the three-step process isn't just for future homeowners -
it's for anyone who has a dream and a willingness to invest regularly to reach
it.
1. HOW MUCH WILL IT COST?
The first step to planning for your goal is finding out how much it is going to
cost. Your local library or bookstore may offer books, magazines and videos
that can help. Make a list of everything you'll need, research the costs and
factor in some extra money to cover unforeseen expenses. Try to get to the
bottom line and pinpoint a figure toward which to save. Having a specific goal
will make it more likely you'll achieve your objective.
2. WHERE SHOULD YOU PUT YOUR MONEY?
Once you have an idea of how much your goal will cost, you need to decide where
you will invest the money you're going to start setting aside. That should
depend on how long you plan to invest before withdrawing the money and how much
market volatility you are willing to tolerate. Your financial adviser can be an
excellent resource at this stage: He or she can help you select funds for your
portfolio that are appropriate given your risk tolerance and time horizon and
that can provide opportunities for reasonable returns.
Financial advisers typically suggest that you attempt to reduce volatility by
spreading your money among two or more investments. Many recommend that for
time periods of two years or less, the largest portion of your portfolio should
be in a fund that offers stability, such as a money market fund.
As your time period increases, they say, so too should your exposure to stock
and longer term bond funds, because you'll have more time to recover from
market declines.
As your investment period winds down and the time to spend your money
approaches, you may want to slowly move your money out of the stock and bond
fund portions of your portfolio and into your money market fund. That way,
sudden market moves won't hamper your spending plans at the last minute. It's a
good idea to discuss your withdrawal plan with your financial adviser, who can
help you decide when and how to move out of the market and how to minimize your
tax bill.
[illustration: baby carriage]
[illustration: suitcase]
3. HOW MUCH SHOULD YOU INVEST?
Depending on how much time you have until you plan to withdraw
the money and the rate of return you earn on your investments, the amount you
need to invest can be a lot less than the amount you will need.
The worksheet on page 5 can help you determine how much you should start
investing each month to reach your goal. You'll notice that the worksheet's
factor tables require you to pick a pretax rate of return for your investments.
Which rate should you choose? That depends on your portfolio. If the majority
of your money will be invested in a money market fund, a 4% return is probably
a realistic expectation. If more of your money will be invested in stocks, your
potential return could be much higher. Ask your financial adviser what rate of
return is reasonable for your portfolio.
Once you've completed the worksheet, you have all the information you need to
get started on your investment plan. When you were seven, all it took to reach
your dream was a piggy bank and a paper route or baby-sitting job. Now it takes
planning. Whether your goal is to buy a home, go on vacation or save money for
a new arrival, your money market fund, as part of your short-term portfolio,
can help you reach it.
[Begin sidebar]
STARTER HOME OR RETIREMENT RETREAT: WHAT WILL IT TAKE TO REACH YOUR GOAL?
[illustration: house]
Whether you're thinking of putting money away for a starter home in the city or
a beach bungalow to enjoy during retirement, it's best to start your investment
plan by figuring what price is comfortably within your range. If you plan to
finance your purchase, your monthly income and the mortgage rate on your loan
will determine what you can afford. Lenders typically require that your housing
costs (principal, interest, taxes and insurance) plus all other monthly debt
payments not exceed 36% of your total monthly income. A real estate agent can
tell you the price range of houses in the area you're considering and can help
you determine how much you're eligible to borrow.
You can use the table at the bottom of this page to get a quick estimate of the
cost of the house you can afford based on a 20% down payment and a fixed-rate
30-year mortgage. It's possible to get lower monthly payments with an
adjustable rate mortgage (ARM), but if you plan to stay in your home for many
years, you will run the risk of watching your payment rise above what it would
have been had you chosen a fixed-rate mortgage.
Once you know what you can afford, you can calculate how much you need to set
aside for the down payment and numerous other expenses involved with your
purchase. Here is an estimate of how much cash you will need to have on hand:
* 20% of the cost of the home for the down payment (some first-time buyers can
qualify for a lower down payment, but most people assume they'll have to put
down 20%)
* 3% to 5% of the amount of the mortgage loan to cover closing costs
* one to three months of mortgage payments (often required by lending banks)
* money for moving expenses
Other cash expenses you may want to consider include repairs or improvements
you want to make right away (such as new paint and carpeting, landscaping,
etc.), appliances or other items you don't own now but will want to own when
you move into your home (such as a lawn mower or patio furniture), and deposits
for your utilities.
<TABLE>
<CAPTION>
Monthly payment on a 30-year fixed-rate
Cost of home mortgage at various rates*
7% 8% 9%
<S> <C> <C> <C>
$75,000 $399 $440 $483
$100,000 $532 $587 $644
$150,000 $798 $881 $966
$200,000 $1,064 $1,174 $1,287
$250,000 $1,331 $1,468 $1,609
$300,000 $1,587 $1,761 $1,931
</TABLE>
*After a 20% down payment on the cost of the home.
[End sidebar]
GOAL SAVING WORKSHEET
1. HOW MUCH MONEY DO YOU NEED TO REACH YOUR GOAL? ______1
(If your goal is to buy a house, enter the amount you'd like to have on hand
for a down payment and other immediate expenses.)
2. HOW MANY YEARS WILL YOU INVEST FOR YOUR GOAL? ______2
3. HOW MUCH HAVE YOU ALREADY INVESTED TOWARD YOUR GOAL? ______3
4. HOW MUCH COULD YOUR INVESTMENTS BE WORTH WHEN YOU WITHDRAW THEM?
(If you entered "0" on line 3, enter "0" on line 4b below.)
a. Find the appropriate factor from Table 1 below and enter it here:
______4A
b. Multiply line 3 by 4a. ______4B
5. WHAT IS YOUR SHORTFALL? ______5
Subtract line 4b from line 1.
6. HOW MUCH DO YOU NEED TO INVEST?
a. Find the appropriate factor from Table 2 below and enter it here.
______6A
b. Multiply your shortfall on line 5 by the factor in line 6a.
______6B
This is the amount you need to invest annually.
c. Divide line 6b by 12. ______6C
This is the amount you need to invest each month.
HOW TO USE THESE TABLES: Find the column that shows the annual pretax rate of
return that you expect your portfolio to earn. Look down that column for the
factor that corresponds to the number of years you will invest toward your
goal. Enter that factor in the appropriate line above.
TABLE 1
Factor for line 4a.
Rate of Return
<TABLE>
<CAPTION>
Years 4% 6% 8% 10%
<S> <C> <C> <C> <C>
1 1.04 1.06 1.08 1.10
2 1.08 1.12 1.17 1.21
3 1.12 1.19 1.26 1.33
4 1.17 1.26 1.36 1.46
5 1.22 1.34 1.47 1.61
6 1.27 1.42 1.59 1.77
7 1.32 1.50 1.71 1.95
8 1.37 1.59 1.85 2.14
</TABLE>
TABLE 2
Factor for line 6a.
Rate of Return
<TABLE>
<CAPTION>
Years 4% 6% 8% 10%
<S> <C> <C> <C> <C>
1 0.962 0.943 0.926 0.909
2 0.471 0.458 0.445 0.433
3 0.308 0.296 0.285 0.275
4 0.226 0.216 0.205 0.196
5 0.178 0.167 0.158 0.149
6 0.145 0.135 0.126 0.118
7 0.122 0.112 0.104 0.096
8 0.104 0.095 0.087 0.079
</TABLE>
[Begin sidebar]
HOW MUCH WILL IT COST?
[illustration: house]
$100,000 house
* down payment: $20,000
* closing costs: $4,500
* roof repair: $1,700
* lawnmower: $520
[illustration: baby carriage]
A baby
* video camera: $682
* 1-year diaper supply: $364
* crib: $188
* car seat: $70
[illustration: suitcase]
7-day Caribbean cruise
* cabin fare for two: $4,020
* hats and sunglasses: $150
* two paperback books: $17
* suntan lotion: $8
[End sidebar]
<TABLE>
<S> <C> <C> <C>
The Cash Management Trust of America
Investment Portfolio
September 30, 1997
Principal Market
Yield at Amount Value
Acquisition (000) (000)
Certificates of Deposit - 5.39%
Canadian Imperial Bank of Commerce
5.55% November 6, 1997 5.55% $35,000 $35,000
Commerzbank A.G.
5.54% October 6, 1997 10,000 10,000
5.53% October 20, 1997 20,000 20,000
Morgan Guaranty Trust Co. of New York
5.53% October 2, 1997 50,000 50,000
Rabobank Nederland N.V.
5.54% October 10,1997 25,000 25,000
Swiss Bank Corp.
5.59% October 21, 1997 25,000 25,000
Westdeutsche Landesbank Girozentrale
5.55% October 1, 1997 25,000 25,000
-
Total Certificates of Deposit 190,000
Commercial Paper - 60.39%
ABN-AMRO North America Finance Inc.
October 3, 1997 25,000 24,989
A.I. Credit Corp.
October 10, 1997 20,000 19,970
October 20, 1997 15,000 14,954
ANZ (Delaware) Inc.
October 14, 1997 25,000 24,948
AT&T Corp.
October 31, 1997 35,000 34,837
Abbott Laboratories
October 23, 1997 25,000 24,915
American Express Credit Corp.
October 14, 1997 40,000 39,914
Ameritech Corp.
October 16, 1997 30,000 29,929
Amoco Co.
November 11, 1997 25,000 24,810
Anheuser-Busch Cos., Inc.
October 1, 1997 25,000 24,996
ARCO British Ltd.
October 23, 1997* 33,000 32,887
Associates Corp. of North America
October 1, 1997 50,000 49,991
Avco Financial Services, Inc.
October 31, 1997 24,000 23,886
Baltimore Gas & Electric Co.
October 3, 1997 8,000 7,996
November 13, 1997 12,000 11,921
Bank of Montreal
October 3, 1997 25,000 24,989
Barclays U.S. Funding Corp.
October 23, 1997 25,000 24,912
Bayerische Landesbank Girozentrale
October 20, 1997 25,000 24,926
Bell Atlantic Financial Services, Inc.
November 5, 1997 25,000 24,865
Bellsouth Telecommunications
October 30, 1997 30,000 29,863
Beneficial Corp.
October 15, 1997 15,000 14,965
Campbell Soup Co.
October 20, 1997 20,500 20,437
Canadian Wheat Board
November 4, 1997 25,000 24,867
Chevron Transport Corp.
October 28, 1997* 10,000 9,957
Coca Cola Co.
October 30, 1997 25,000 24,886
Commercial Credit Co.
October 17, 1997 20,000 19,948
October 20, 1997 10,000 9,969
Commonwealth Bank of Australia
October 8, 1997 25,000 24,973
John Deere Capital Corp.
October 16, 1997 25,000 24,939
Deutsche Bank Financial Inc.
October 15, 1997 25,000 24,943
Walt Disney Co.
October 9, 1997 25,000 24,966
Dresdner U.S. Finance Inc.
October 29, 1997 25,000 24,889
E.I. du Pont de Nemours and Co.
October 29, 1997* 25,000 24,890
Eastman Kodak Co.
October 7, 1997 21,000 20,978
Electricite de France
November 7, 1997 25,000 24,856
Electronic Data Systems Corp.
October 27, 1997* 25,800 25,696
Emerson Electric Co.
October 24, 1997 25,000 24,909
Export Development Corp.
October 9, 1997 25,000 24,966
Exxon Imperial U.S. Inc.
October 7, 1997* 18,000 17,981
October 9, 1997* 7,000 6,990
Ford Motor Credit Co.
October 8, 1997 20,000 19,975
October 10, 1997 20,000 19,969
November 5, 1997 25,000 24,862
France Telecom
October 24, 1997 10,900 10,860
Gannett Co., Inc.
October 14, 1997* 5,000 4,989
October 16, 1997* 22,800 22,744
Gaz de France
October 17, 1997 25,000 24,941
General Electric Capital Corp.
October 1, 1997 25,000 24,995
October 8, 1997 25,000 24,969
October 14, 1997 20,000 19,957
October 21, 1997 5,000 4,984
Gillette Co.
November 5, 1997* 25,000 24,863
Glaxo Wellcome PLC
October 3, 1997* 16,000 15,927
November 4, 1997* 10,000 9,947
Halifax PLC
October 29, 1997 25,000 24,890
Harvard University
October 24, 1997 25,000 24,908
H.J. Heinz Co.
October 7, 1997 14,000 13,985
October 10, 1997 10,000 9,985
IBM Credit Corp.
October 27, 1997 30,000 29,875
International Lease Finance Corp.
October 6, 1997 10,000 9,991
October 8, 1997 10,000 9,988
November 7, 1997 10,000 9,942
Kellogg Co.
October 9, 1997 6,100 6,092
November 7, 1997 20,000 19,887
Kimberly-Clark Corp.
October 10, 1997* 4,500 4,493
October 28, 1997* 15,000 14,938
Eli Lilly and Co.
October 27, 1997 25,000 24,903
Lloyds Bank PLC
November 7, 1997 25,000 24,856
Lucent Technologies Inc.
October 21, 1997 4,700 4,685
November 6, 1997 25,000 24,859
MCI Communications Corp.
October 2, 1997* 25,000 24,992
McDonald's Corp.
October 1, 1997 25,000 24,996
Minnesota Mining & Manufacturing Co.
October 8, 1997 5,000 4,994
October 22, 1997 14,000 13,953
Monsanto Co.
October 9, 1997* 15,300 15,279
November 4, 1997* 10,000 9,947
Motorola Credit Corp.
October 7, 1997 10,000 9,989
National Australia Funding (Delaware) Inc.
October 20, 1997 25,200 25,123
Nestle Capital Corp.
October 23, 1997 25,000 24,913
Novartis Finance Corp.
October 8, 1997* 20,000 19,976
Panasonic Finance Inc.
November 14, 1997* 25,000 24,828
J.C. Penney Funding Corp.
November 18, 1997* 25,000 24,813
PepsiCo, Inc.
October 1, 1997 12,500 12,498
October 6, 1997 20,000 19,982
Pfizer Inc.
October 28, 1997* 25,000 24,896
Procter & Gamble Co.
November 10, 1997 25,000 24,852
RTZ America Inc.
October 30, 1997* 10,000 9,954
Reed Elsevier Inc.
November 13, 1997 20,000 19,866
SBC Communications
October 22, 1997* 25,000 24,917
St. Paul Cos. Inc.
October 10, 1997* 18,000 17,973
Sony Capital Corp.
October 1, 1997* 5,400 5,399
October 21, 1997* 20,000 19,936
Svenska Handelsbanken Inc.
October 7, 1997 25,000 24,975
Telstra Corp. Ltd.
October 1, 1997 20,000 19,997
Toronto-Dominion Holdings USA Inc.
October 8, 1997 25,000 24,969
UBS Finance (Delaware) Inc.
October 1, 1997 25,000 24,996
Vereinsbank Finance (Delaware) Inc.
November 14, 1997 25,000 24,839
Vermont American Corp.
October 16, 1997* 22,317 22,263
Wal-Mart Stores, Inc.
October 2, 1997 25,000 24,992
Warner-Lambert Co.
October 28, 1997* 30,000 29,873
Wool International
October 1, 1997 25,000 24,996
Xerox Corp.
October 7, 1997 10,000 9,989
October 9, 1997 15,000 14,979
Yale University
October 24, 1997 25,000 24,910
--------------
Total Commercial Paper 2,129,616
Federal Agency Discount Notes - 32.98%
Federal Home Loan Bank
October 1, 1997 2,940 2,940
October 3, 1997 50,000 49,978
October 17, 1997 95,000 94,762
October 22, 1997 30,000 29,902
November 14, 1997 15,000 14,898
November 19, 1997 21,200 21,041
Freddie Mac
October 2, 1997 33,100 33,090
October 6, 1997 84,700 84,624
October 7, 1997 25,000 24,974
October 9, 1997 50,000 49,932
October 10, 1997 20,000 19,970
October 14, 1997 50,000 49,898
October 15, 1997 86,159 85,965
October 16, 1997 39,400 39,308
October 30, 1997 12,500 12,444
October 31, 1997 50,000 49,766
November 13, 1997 124,300 123,481
Fannie Mae
October 2, 1997 25,322 25,314
October 16, 1997 9,700 9,677
October 17, 1997 17,295 17,251
October 24, 1997 55,591 55,391
October 30, 1997 17,085 17,008
November 7, 1997 22,020 21,902
November 12, 1997 51,000 50,671
November 18, 1997 17,500 17,371
November 24, 1997 112,600 111,668
Tennessee Valley Authority
October 22, 1997 50,000 49,834
--------------
Total Federal Agency Discount Notes 1,163,060
Other - 0.96%
Canada Bills
October 10, 1997 10,000 9,985
October 27, 1997 10,000 9,959
November 3, 1997 14,000 13,927
--------------
Total Other 33,871
Total Investment Securities
(Cost: $3,516,528,000) 3,516,547
Excess of cash and receivables over
payables 10,111
--------------
Net Assets $3,526,658
==============
*Restricted securities that can be resold
only to institutional investors. Deemed to be
as liquid as unrestricted securities in
the portfolio.
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
Cash Management Trust of America
Financial Statements
- ---------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at September 30, 1997 (dollars in thousands)
- ---------------------------------------- ------------ -----------
Assets:
Investment securities at market
(cost: $3,516,528) $3,516,547
Cash 3,026
Receivables for--
Sales of fund's shares $45,046
Accrued interest 1,442 46,488
------------ -----------
3,566,061
Liabilities:
Payables for--
Repurchases of fund's shares 37,358
Dividends payable 888
Management services 853
Accrued expenses 304 39,403
------------ -----------
Net Assets at September 30, 1997 -
Equivalent to $1.00 per share on
3,526,637,826 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $3,526,658
===========
Statement of Operations
for the ended September 30, 1997 (dollars in thousands)
------------ -----------
Investment Income:
Income:
Interest $ 193,736
Expenses:
Management services fee $10,230
Distribution expenses 2,836
Transfer agent fee 5,032
Reports to shareholders 218
Registration statement and prospectus 569
Postage, stationery and supplies 1,093
Trustees' fees 39
Auditing and legal fees 41
Custodian fee 92
Taxes (other than federal income tax) 48 20,198
------------ -----------
Net investment income 173,538
-----------
Increase in Unrealized Appreciation
on Investments:
Net realized gain 0
Net unrealized appreciation
on investments:
Beginning of year 9
End of year 19
------------
Net increase in unrealized appreciation
on investments 10
------------
Net realized gain and unrealized
depreciation on investments 10
-----------
Net Increase in Net Assets
Resulting from Operations $173,548
============
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------ -----------
Year Ended
9/30/97 9/30/96
Operations: ------------ -----------
Net investment income $ 173,538 $ 153,244
Net realized gain on investments 0 0
Net increase in unrealized
appreciation on investments 10 10
------------ -----------
Net increase in net assets
resulting from operations 173,548 153,254
------------ -----------
Dividends Paid to Shareholders (173,537) (153,257)
------------ -----------
Capital Share Transactions:
Proceeds from shares sold:
11,147,992,254 and 10,707,976,952
shares, respectively 11,147,992 10,707,977
Proceeds from shares issued in
reinvestment of net investment income
dividends:
158,678,153 and 140,296,630 shares,
respectively 158,678 140,296
Cost of shares repurchased:
11,084,144,678 and 10,539,920,205
shares, respectively (11,084,145) (10,539,920)
------------ -----------
Net increase in net assets resulting
from capital share transactions 222,525 308,353
------------ -----------
Total Increase in Net Assets 222,536 308,350
Net Assets:
Beginning of year 3,304,122 2,995,772
------------ -----------
End of year $3,526,658 $3,304,122
============ ============
See Notes to Financial Statements
</TABLE>
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 short-term 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.
Securities having 60 days or less to maturity are amortized to maturity based
on their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. All other fixed-income
securities are valued at prices obtained from a pricing service, 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
quoted bid and asked prices or at prices for securities of comparable maturity,
quality and type. Securities and assets for which representative market
quotations are not readily available are valued at fair value as determined in
good faith by a committee appointed by 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. Discounts and
premiums on securities purchased are amortized. Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
paid to shareholders monthly.
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 net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of September 30, 1997, unrealized appreciation for book and federal income
tax purposes aggregated $19,000, all of which related to appreciated
securities. There was no difference between book and tax realized gains on
securities transactions for the year ended September 30, 1997. The cost of
portfolio securities for book and federal income tax purposes was
$3,516,528,000 at September 30, 1997.
3. The fee of $10,230,000 for 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 0.32% of the first $1 billion of average net assets; 0.29%
of such assets in excess of $1 billion but not exceeding $2 billion; and 0.27%
of such assets in excess of $2 billion.
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, 1997, distribution expenses under the plan were
$2,836,000. As of September 30, 1997, accrued and unpaid distribution expenses
were $202,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $5,032,000.
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,
1997, aggregate amounts deferred and earnings thereon were $43,000.
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
$61,801,166,000 and $61,776,775,000, respectively, during the year ended
September 30, 1997.
Pursuant to the custodian agreement, the fund receives credit against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $92,000 includes no amounts paid by these credits rather
than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS
- ------------------------------ ------------------ -------- ------ -------- --------
Year ended September 30
------------------ -------- ------ -------- --------
1997 1996 1995 1994 1993
------------------ -------- ------ -------- --------
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00 $1.00 $1.00
------------------ -------- ------ -------- --------
Income from Investment Operations:
Net investment income .049 .050 .052 .031 .025
------------------ -------- -------- -------- --------
Total income from investment opera .049 .050 .052 .031 .025
------------------ -------- -------- -------- --------
Less Distributions:
Dividends from net investment income (.049) (.050) (.052) (.031) (.025)
------------------ -------- -------- -------- --------
Total distributions (.049) (.050) (.052) (.031) (.025)
------------------ ------- -------- -------- --------
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return 5.03% 5.06% 5.34% 3.10% 2.57%
Ratios/Supplemental Data:
Net assets, end of year (in millions $3,527 $3,304 $2,996 $2,738 $1,940
Ratio of expenses to average
net assets .57% .60% .60% .68% .65%
Ratio of net income to
average net assets 4.93% 4.95% 5.21% 3.14% 2.57%
</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, 1997, 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, 1997 by correspondence with the
custodians, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Los Angeles, California
October 31, 1997
1997 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.
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 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 1998 to determine the CALENDAR YEAR amounts to
be included on their respective 1997 tax returns. Shareholders should consult
their tax advisers.
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
BOARD OF TRUSTEES
H. FREDERICK CHRISTIE
Rolling Hills Estates, California
Private investor; former President and Chief Executive
Officer, The Mission Group; former President,
Southern California Edison Company
DON R. CONLAN, South Pasadena, California
President (retired), The Capital Group Companies, Inc.
DIANE C. CREEL, Long Beach, California
Chief Executive Officer and President,
The Earth Technology Corporation
(international engineering consulting)
MARTIN FENTON, JR., San Diego, California
Chairman of the Board, Senior Resource Group, Inc.
(senior living centers management)
LEONARD R. FULLER, Marina del Rey, California
President, Fuller Consulting
(management consultants)
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
Executive Vice President and Director,
Capital Research and Management Company
HERBERT HOOVER III, San Marino, 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
Retired; former Chairman of the Board, BW/IP
International, Inc. (industrial manufacturing)
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
MICHAEL J. DOWNER, Los Angeles, California
Vice President
Senior Vice President - Fund Business Management
Group, Capital Research and Management Company
MARY C. HALL, Brea, 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
ANTHONY W. HYNES, JR., Brea, California
Treasurer
Vice President - Fund Business Management Group,
Capital Research and Management Company
KIMBERLY S. VERDICK, Los Angeles, California
Assistant Secretary
Assistant Vice President - Fund Business Management Group, Capital Research and
Management Company
TODD L. MILLER, Brea, California
Assistant Treasurer
Assistant Vice President - Fund Business Management Group, Capital Research and
Management Company
Litho in USA CD/L/3205
Lit. No. MMF-011-1197
Printed on recycled paper
[The American Funds Group (R)]
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 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
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
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
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 FUNDS' SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180 OR VISIT WWW.AMERICANFUNDS.COM ON THE WORLD
WIDE WEB.
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, 1997, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
