[THE AMERICAN FUNDS GROUP(R)]
[illustration: fruit tree with an apple, pear, and orange being watered]
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, 1998
[illustration: pear]
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.
[illustration: orange]
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.
[illustration: apple]
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, 1993-September 30, 1998
[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
October 1997 5.03 4.62 5.10 3.08
November 1997 4.91 4.66 5.15 3.11
December 1997 5.36 4.70 5.30 3.20
January 1998 5.03 4.39 4.87 2.94
February 1998 4.95 4.43 4.57 2.76
March 1998 5.03 4.57 4.83 2.92
April 1998 4.84 4.35 5.07 3.06
May 1998 5.05 4.48 4.72 2.85
June 1998 5.09 4.38 4.85 2.93
July 1998 4.97 4.43 4.80 2.90
August 1998 4.94 4.38 2.80 4.64
September 1998 4.99 4.35 2.88 4.77
</TABLE>
[end mountain chart]
The Cash Management Trust of America
The U.S. Treasury Money Fund of America/2/
The Tax-Exempt Money Fund of America (federally tax-free)/3/
The Tax-Exempt Money Fund of America (taxable equivalent yield)/4/
/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/Results for the Tax-Exempt Money Fund of America reflect the effect of a
partial management fee waiver. Without the waiver, results would have been
lower during certain periods.
/4/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.
FIGURES SHOWN ARE PAST RESULTS. THE RETURN ON AN INVESTMENT IN THESE FUNDS WILL
VARY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED
BY A BANK OR ANY OTHER ENTITY. 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
The world looks very different today to U.S. investors than it did one year
ago. Over the past few months, stock markets at home and abroad suffered
periods of serious setbacks as economic troubles in the Pacific Rim, Latin
America and Russia worsened. The turmoil served as a reminder of the importance
of spreading investment risk among many baskets - not only among different
countries, but among different types of assets and investments.
In spite of the economic and financial problems facing much of the world, the
U.S. economy remained relatively strong over your funds' 12-month reporting
period. Inflation was moderate in the face of a tight labor market and rising
wages. Prices as measured by the overall Consumer Price Index rose only 1.4%
over the year. Short-term rates were quite stable over most of the period, as
reflected in the funds' seven-day yields shown in the chart on the inside front
cover of this report.
On September 29, the Federal Reserve lowered the federal funds rate (the rate
banks charge each other for overnight loans) one quarter of a percentage point,
to 5.25% - the first decline since January 1996. The rate cut was largely in
response to concerns that slower growth overseas would have a negative impact
on growth in the United States. On October 15 - fifteen days after the close of
your funds' reporting period - the Federal Reserve surprised the financial
markets with another quarter of a percentage point rate cut, citing continued
concerns about the "unsettled conditions in the financial markets," which
threatened to restrain future economic growth. Short-term rates immediately
ticked downward.
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 5.15% with
dividends reinvested over the 12-month period ended September 30.
THE U.S. TREASURY MONEY FUND OF AMERICA produced a 12-month income return of
4.63% including reinvested dividends. 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 2.97% with dividends reinvested. This return is equivalent to a
return of 4.92% for investors in the 39.6% federal tax bracket. A portion of
this income may also be exempt from state and local taxes.
AN IMPORTANT COMPONENT OF A DIVERSIFIED PORTFOLIO
We've often said in past reports that your money market funds can play a
valuable role in your investment portfolio because of the stability and
convenience they provide. In light of the recent turbulence in the financial
markets, the benefit of a diversified portfolio that includes money market
funds appears clear.
In the article that begins on page 2, we describe how your money market funds,
stock funds and bond funds can be used to meet the three basic investment goals
of stability, growth and income. We hope that you'll find the information
useful the next time you meet with your financial adviser to discuss your
financial goals.
Thank you for choosing an American Funds money market fund for your investment
portfolio. We appreciate your business and 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 13, 1998
LAYING THE GROUNDWORK FOR
A SUCCESSFUL INVESTMENT PROGRAM
[illustration: orchard]
As fall wanes into winter, people across the country are marking the passage of
the season with a last harvest from their gardens.
Gardeners recognize that different seasons call for different strategies.
There's a time to store up seeds in preparation for spring, a time to plant and
grow them, and a time to harvest the fruits and vegetables they provide.
As investors, we pass through similar seasons. Sometimes we need to store up
money for a special event or simply to have on hand to meet sudden expenses. At
other times, our goal is to invest for growth. And sometimes our objective is
to harvest and use our investment income.
Success in gardening and investing is attainable by anyone. All that is
required is planning, patience, commitment and in most cases, ongoing advice
from an expert. Of course, it also helps to have a few good tools on hand to
help lay the groundwork.
This article is meant to be part of your tool kit. It describes how your money
market fund and other funds can be used to help meet three basic investment
goals. It also offers a table on page 5 that you can use with your financial
adviser to create a financial plan or re-evaluate an existing one. Armed with
the right tools and financial advice, you'll find that investing can be a truly
rewarding experience.
MANY CHOICES, THREE BASIC GOALS
[illustration: pear]
Mutual funds come in many varieties. Making a selection would be overwhelming
if we tried to consider all the possibilities at once. Fortunately, that's not
necessary. We can eliminate many choices by simply identifying our goals and
then considering only those funds that can help meet those goals. Financial
advisers point out that most investment goals fall within three basic
categories:
1. STABILITY
Many investors want to set aside some money that isn't likely to decline in
value so it will be there when they need it - either to pay bills, deal with
emergencies or to move into other investments at a later date.
2. GROWTH
Most investors want some of their money to grow to help meet long-term goals.
This money typically makes up the largest portion of pre-retirement and college
investment portfolios.
3. INCOME
Some people want an investment that provides income. If the goal is to meet
current needs, investors often seek a steady stream of income. When the goal is
to invest for future needs, people typically invest for growing income.
Retirees - and other people who have both current and long-term income needs -
often invest with both goals in mind.
STABILITY FOR PEACE OF MIND
[illustration: fruit tree with an apple, pear, and orange being watered]
Financial advisers recommend that every well-diversified portfolio include some
assets that can provide stability. You can meet this goal by putting a portion
of your money in short-term securities that have little or no downside risk.
Money market funds, which are portfolios of high-quality short-term securities,
provide a convenient way of meeting this goal. Such funds are managed to
protect your investment from declining in value while providing the benefit of
current interest income.
Some people seek stability for money that is set aside for emergencies. Others
seek a temporary parking place for larger sums, such as a bonus or an
inheritance. Money market funds can provide a good holding place for these
situations. You can usually count on the money to be there when it's needed,
and check-writing privileges make the cash easy to access. (You can order
checks for your American Funds money market account by calling 800/325-3590 any
time or 800/421-0180 Monday through Friday, 8 a.m. to 8 p.m. Eastern time.)
Investors can also use money market funds to deal with market volatility by
"dollar cost averaging" - that is, regularly moving some money out of the money
market fund and into stock or bond funds, say once a month or quarter. It's
important to note that a dollar cost averaging program doesn't guarantee a
profit or protect you against a loss, but if continued over a market cycle, it
will give you an average (rather than potentially high) share price.
People who invest to reach long-term goals, such as retirement, may also seek
some stability - particularly when they near the time they plan to use their
money. As part of a long-term portfolio primarily made up of stock or bond
funds, a money market fund provides stability that can help moderate the
effects of the ups and downs of the other investments and make the portfolio's
overall return less volatile.
GROWTH FOR FUTURE NEEDS
[illustration: orange]
Financial advisers say people who invest for retirement or other long-term
needs should consider putting the majority of their money where it has the
potential to grow. They typically recommend that investors select a combination
of growth funds, growth-and-income funds and equity-income funds to reach this
goal. Such funds invest in stocks, which have historically earned higher
returns than income funds or money market funds over long periods of time.
Investors with shorter time frames often want their money to grow, too.
However, stock funds can be inappropriate investments for short-term goals
because of their potential volatility. Many financial advisers offer a simple
solution: Invest in intermediate-term bond funds and money market funds and
reinvest the income earned - a concept known as compounding. While these funds
won't provide the same potential rate of growth as stock or long-term bond
funds, they can offer a way to achieve short-term growth goals without a lot of
volatility.
[illustration: person picking fruit]
INCOME TO SUPPLEMENT A LIFESTYLE
People who invest for income are often seeking to supplement a salary or Social
Security benefits. This goal can be met with a variety of funds, including
growth-and-income, equity-income, balanced, income, and money market funds.
Equity-income funds, growth-and-income funds and balanced funds typically
invest in stocks that pay dividends. The advantage of investing in these funds
is that both your income return and the money in your account may grow in value
if the dividends and prices of the stocks in the portfolio increase. For that
reason, financial advisers often suggest that investors keep a portion of their
money in such funds following retirement.
Income funds and money market funds can be a good choice for people who don't
necessarily need growing income. Income funds invest in bonds and typically
offer the advantage of a higher rate of income than most other funds can
provide, though their share prices are not immune to volatility. Money market
funds can be attractive because of the stability of their share prices, though
they typically offer a lower rate of return than income funds.
PLANNING AN INVESTMENT PROGRAM
[illustration: apple]
Gardeners understand the importance of proper planning. Without it, any number
of problems can occur - infertile soil, improper or late plantings, and poor
drainage, to name a few. Even the effects of the wind, sun and shade have to be
taken into consideration when planning a garden. Investors can do well by
following the ways of the gardener. Advance planning and the help of a
financial adviser enable investors to properly manage their assets and
successfully weather the storms of the financial markets.
On the following page we've provided a table that you can use with your
financial adviser to get started on an investment program. Your financial
adviser can help you evaluate your financial needs, determine which types of
investments can best help you meet those needs, narrow the selection of
investments and decide how to divide your money among your choices. With
planning, patience and commitment, investing - like gardening - can be a
rewarding and fruitful experience.
<TABLE>
<CAPTION>
FINANCIAL PLANNING TABLE
WANTS/NEEDS TIME FRAME INVESTMENT GOAL YOUR FINANCIAL
a new car 2 years stability ADVISER'S FUND
college tuition 15 years growth RECOMMENDATIONS
Examples: monthly income now income
money for retirement 25 years growth and income
<S> <C> <C> <C> <C>
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
</TABLE>
WHAT IS YOUR GOAL?
[illustration: pear]
STABILITY
CONSIDER:
* money market funds for short- and long-term goals
[illustration: orange]
GROWTH
CONSIDER:
* money market funds for short-term goals
* income funds for intermediate-term goals
* growth, growth-and-income, equity-income or balanced funds for long-term
goals
[illustration: apple]
INCOME
CONSIDER:
* money market funds for short-term goals
* growth-and-income, equity-income, balanced or income funds for long-term
goals
The American Funds Group(r) offers a wide range of funds to meet your
investment needs. See your financial adviser or visit our Web site -
www.americanfunds.com - for more information.
GROWTH FUNDS
AMCAP Fund(r)
EuroPacific Growth Fund(r)
The Growth Fund of America(r)
The New Economy Fund(r)
New Perspective Fund(r)
SMALLCAP World Fund(r)
GROWTH-AND-INCOME FUNDS
American Mutual Fund(r)
Capital World Growth and Income Fund/SM/
Fundamental Investors/SM/
The Investment Company of America(r)
Washington Mutual Investors Fund/SM/
EQUITY-INCOME FUNDS
Capital Income Builder(r)
The Income Fund of America(r)
BALANCED FUND
American Balanced Fund(r)
INCOME FUNDS
American High-Income Trust/SM/
The Bond Fund of America/SM/
Capital World Bond Fund(r)
Intermediate Bond Fund of America(r)
U.S. Government Securities Fund/SM/
TAX-EXEMPT INCOME FUNDS
American High-Income Municipal Bond Fund(r)
Limited Term Tax-Exempt Bond
Fund of America/SM/
The Tax-Exempt Bond Fund of America(r)
The Tax-Exempt Fund of California/SM/
The Tax-Exempt Fund of Maryland(r)
The Tax-Exempt Fund of Virginia(r)
MONEY MARKET FUNDS
The Cash Management Trust of America(r)
The Tax-Exempt Money Fund of America/SM/
The U.S. Treasury Money Fund of America/SM/
<TABLE>
The Cash Management Trust of America
Investment Portfolio
<S> <C> <C> <C>
September 30, 1998
Principal Market
Yield at Amount Value
Acquisition (000) (000)
Bankers' Acceptances - 0.76%
Wachovia Bank
October 30, 1998 5.51% 35,000 34,841
-
Total Bankers' Acceptances 34,841
Certificates of Deposit - 3.37%
Abbey National PLC
5.54% October 8, 1998 5.53 35,000 35,000
Bayerische Landesbank Girozentrale
5.55% October 26, 1998 5.54 35,000 35,000
Canadian Imperial Bank of Commerce
5.55% November 2, 1998 5.50 25,000 25,001
Mellon Bank
5.56% October 2, 1998 5.56 25,000 25,000
Westdeutsche Landesbank Girozentrale
5.59% October 9, 1998 5.56 35,000 35,000
-
Total Certificates of Deposit 155,001
Commercial Paper - 53.50%
A.I. Credit Corp
October 6, 1998 5.51 20,000 19,982
October 29, 1998 5.50 20,000 19,912
November 9, 1998 5.47 15,000 14,910
Abbott Laboratories
October 7, 1998 5.53 25,000 24,973
October 20, 1998 5.48 20,600 20,538
American Express Credit Corp.
October 21, 1998 5.55 35,000 34,888
American General Finance Corp.
November 10, 1998 5.44 25,000 24,847
Ameritech Capital Funding Corp.
October 7, 1998(1) 5.53 35,000 34,963
Ameritech Corp.
November 12, 1998 5.43 40,000 39,743
Anheuser-Busch Cos., Inc.
October 19, 1998 5.50 25,000 24,928
Associates Corp. of North America
November 19, 1998 5.77 25,000 24,996
BellSouth Telecommunications Inc.
October 21, 1998 5.51 35,000 34,888
October 28, 1998 5.33 8,000 7,967
November 4, 1998 5.43 29,000 28,852
British Columbia (Province of)
November 2, 1998 5.47 21,500 21,393
Campbell Soup Co.
October 20, 1998 5.54 16,500 16,450
October 23, 1998 5.53 25,000 24,912
October 27, 1998 5.47 14,000 13,943
Chevron USA Inc.
October 22, 1998 5.52 40,000 39,866
November 6, 1998 5.23 35,000 34,813
Chrysler Financial Corp.
October 16, 1998 5.56 25,000 24,939
CIT Group Holdings Inc.
October 22, 1998 5.54 30,000 29,899
Coca-Cola Co.
October 28, 1998 5.50 50,000 49,788
November 4, 1998 5.46 25,000 24,868
Commercial Credit Co.
October 20, 1998 5.50 25,000 24,924
Commerzbank U.S. Finance Inc.
October 26, 1998 5.54 35,000 34,861
Consolidated Natural Gas Co.
October 6, 1998 5.52 20,000 19,982
John Deer Capital Corp.
October 5, 1998 5.57 35,000 34,973
Deutsche Bank Financial Inc.
October 6, 1998 5.56 35,000 34,968
Diageo Capital PLC
October 13, 1998(1) 5.50 35,000 34,931
Walt Disney Co.
October 8, 1998 5.50 42,650 42,598
Dresdner U.S. Finance Inc.
October 13, 1998 5.52 25,000 24,950
Duke Energy Corp.
October 9, 1998 5.53 25,000 24,966
Duke University
October 28, 1998 5.48 25,000 24,894
E.I. du Pont de Nemours and Co.
November 3, 1998 5.45 75,000 74,615
Emerson Electric Co.
October 16, 1998 5.50 50,000 49,904
Exxon Imperial U.S. Inc.
October 15, 1998(1) 5.53 35,000 34,920
Ford Motor Credit Co.
October 1, 1998 5.54 55,000 54,992
October 7, 1998 5.56 20,000 19,979
France Telecom
October 29, 1998 5.53 50,000 49,778
Gannett Co.
October 27, 1998(1) 5.51 25,000 24,897
General Electric Capital Corp.
October 15, 1998 5.56 20,000 19,954
November 2, 1998 5.52 40,000 39,799
General Mills, Inc.
October 5, 1998 5.53 20,000 19,985
General Motors Acceptance Corp.
November 12, 1998 5.43 25,000 24,839
Gillette Co.
October 9, 1998(1) 5.53 35,000 34,952
Glaxo Wellcome PLC
October 13, 1998(1) 5.50 50,000 49,901
Halifax PLC
October 8, 1998 5.54 30,000 29,963
Harvard University
October 20, 1998 5.53 25,000 24,924
H.J. Heinz Co.
October 16, 1998 5.53 21,000 20,949
October 29, 1998 5.53 29,000 28,872
Hershey Foods Corp.
October 9, 1998 5.53 25,000 24,966
Household Finance Corp.
October 20, 1998 5.53 25,000 24,924
IBM Credit Corp.
October 6, 1998 5.55 25,000 24,977
International Lease Finance Corp.
October 14, 1998 5.55 30,000 29,936
Kimberly-Clark Corp.
October 16, 1998(1) 5.54 35,000 34,914
Lucent Technologies Inc.
October 29, 1998 5.47 25,000 24,890
McDonald's Corp.
October 5, 1998(1) 5.50 35,000 34,973
Minnesota Mining & Manufacturing Co.
October 23, 1998 5.48 35,000 34,878
November 17, 1998 5.45 25,000 24,820
Motorola Credit Corp.
October 20, 1998 5.52 35,900 35,791
National Australia Funding (Delaware) Inc.
October 23, 1998 5.54 35,000 34,877
Nordstrom Credit Inc.
October 15, 1998 5.51 21,800 21,750
Panasonic Finance America Inc.
October 15, 1998(1) 5.55 25,000 24,943
PepsiCo, Inc.
October 1, 1998(1) 5.52 35,000 34,995
Pfizer Inc.
October 2, 1998(1) 5.49 50,000 49,985
October 13, 1998(1) 5.51 25,000 24,951
Pitney Bowes Credit Corp.
October 2, 1998 5.50 30,000 29,991
Procter & Gamble Co.
October 19, 1998 5.51 75,000 74,783
Reed Elsevier, Inc.
October 1, 1998(1) 5.75 25,000 24,996
October 27, 1998(1) 5.70 25,000 24,899
October 28, 1998(1) 5.53 20,000 19,914
Rio Tinto America Inc.
October 23, 1998(1) 5.56 25,100 25,012
Sara Lee Corp.
October 26, 1998 5.27 25,000 24,905
SBC Communications Inc.
October 2, 1998(1) 5.49 40,000 39,988
Shell Finance (UK) PLC
October 26, 1998 5.49 25,000 24,901
SmithKline Beecham Corp.
October 27, 1998 5.51 50,000 49,795
St. Paul Companies, Inc.
October 8, 1998(1) 5.53 25,000 24,970
UBS Finance (Delaware) Inc.
October 5, 1998 5.55 20,000 19,985
Vereinsbank Finance (Delaware) Inc.
October 2, 1998 5.54 25,000 24,992
Xerox Capital (Europe) PLC
November 20, 1998 5.47 25,000 24,808
--------------
Total Commercial Paper 2,463,037
Federal Agency Discount Notes - 42.57%
Fannie Mae
October 9, 1998 5.49 54,900 54,825
October 13, 1998 5.48 25,000 24,951
October 15, 1998 5.43 50,000 49,888
October 16, 1998 5.46 50,000 49,879
October 19, 1998 5.45 49,000 48,860
October 21, 1998 5.43 50,000 49,843
October 22, 1998 5.49 24,700 24,618
October 30, 1998 5.45 89,600 89,196
November 4, 1998 5.14 25,000 24,879
November 16, 1998 5.38 37,000 36,742
November 20, 1998 5.39 31,189 30,953
Federal Farm Credit
November 2, 1998 5.15 24,500 24,385
November 18, 1998 5.13 33,000 32,771
Federal Home Loan Bank
October 7, 1998 5.43 90,000 89,905
November 25, 1998 5.18 42,852 42,510
November 27, 1998 5.13 54,400 53,953
Freddie Mac
October 1, 1998 5.48 35,000 34,995
October 2, 1998 5.48 48,745 48,730
October 6, 1998 5.48 50,000 49,955
October 8, 1998 5.50 50,000 49,939
October 9, 1998 5.49 14,180 14,161
October 14, 1998 5.46 125,000 124,736
October 22, 1998 5.45 50,000 49,834
October 23, 1998 5.43 25,750 25,661
November 5, 1998 5.40 114,500 113,885
November 6, 1998 5.40 73,700 73,292
November 9, 1998 5.39 32,700 32,506
November 12, 1998 5.19 72,845 72,393
November 13, 1998 5.15 140,390 139,472
November 16, 1998 5.35 64,938 64,478
November 19, 1998 5.40 50,000 49,628
November 20, 1998 5.33 50,000 49,625
November 24, 1998 5.20 25,000 24,803
November 30, 1998 5.19 72,000 71,374
Student Loan Marketing Assn.
March 18, 1999(2) 5.14 50,000 49,984
Tennessee Valley Authority
November 19, 1998 5.13 93,000 92,350
--------------
Total Federal Agency Discount Notes 1,959,959
Other - 0.32%
Canada Bills
November 2, 1998 5.23 14,867 14,796
--------------
Total Other 14,796
Total Investment Securities
(cost: $4,627,618,000) 4,627,634
Excess of payables over cash and
receivables (23,729)
--------------
Net Assets $4,603,905
==============
(1)Restricted securities that can be resold only to
institutional investors. In practice, these securities
are as liquid as unrestricted securities in the
portfolio.
(2)Coupon rate changes weekly; description of issue
and yield at acquisitionreflect current coupon rate.
See Notes to Financial Statements.
</TABLE>
<TABLE>
Cash Management Trust of America
Financial Statements
- ---------------------------------------------------------------
<S> <C> <C>
Statement of Assets and Liabilities
at September 30, 1998 (dollars in thousands)
- --------------------------------------------------------------
Assets:
Investment securities at market
(cost: $4,627,618) $4,627,634
Cash 3,845
Receivables for--
Sales of fund's shares $41,647
Accrued interest 1,332 42,979
-----------------------
4,674,458
Liabilities:
Payables for--
Purchases of investments 24,879
Repurchases of fund's shares 43,364
Dividends payable 1,141
Management services 1,081
Accrued expenses 88 70,553
-----------------------
Net Assets at September 30, 1998 -
Equivalent to $1.00 per share on
4,603,887,658 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $4,603,905
===========
Statement of Operations
for the year ended September 30, 1998 (dollars in thousands)
-----------------------
Investment Income:
Income:
Interest $ 216,196
Expenses:
Management services fee $11,113
Distribution expenses 3,209
Transfer agent fee 5,767
Reports to shareholders 112
Registration statement and prospectus 658
Postage, stationery and supplies 1,330
Trustees' fees 37
Auditing and legal fees 41
Custodian fee 124
Taxes other than federal income tax 33 22,424
-----------------------
Net investment income 193,772
-----------
Change in Unrealized Appreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of year 19
End of year 16
--------------
Net decrease in unrealized appreciation
on investments (3)
------------
Net Increase in Net Assets
Resulting from Operations $193,769
============
Statement of Changes in Net
Assets (dollars in thousands)
- --------------------------------------------------------------
September 30September 30
1998 1997
Operations: -----------------------
Net investment income $ 193,772 $ 173,538
Net change in unrealized appreciation
on investments (3) 10
-----------------------
Net increase in net assets
resulting from operations 193,769 173,548
-----------------------
Dividends Paid to Shareholders (193,772) (173,537)
-----------------------
Capital Share Transactions:
Proceeds from shares sold:
12,930,964,595 and 11,147,992,254
shares, respectively 12,930,965 11,147,992
Proceeds from shares issued in
reinvestment of net investment income
dividends:
177,120,323 and 158,678,153 shares,
respectively 177,120 158,678
Cost of shares repurchased:
12,030,835,086 and 11,084,144,678
shares, respectively (12,030,835)(11,084,145)
-----------------------
Net increase in net assets resulting
from capital share transactions 1,077,250 222,525
-----------------------
Total Increase in Net Assets 1,077,247 222,536
Net Assets:
Beginning of year 3,526,658 3,304,122
-----------------------
End of year $4,603,905 $3,526,658
========================
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
NET ASSET VALUE - 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.
SECURITY VALUATION - 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 with original
maturities of one year or less 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.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - As is customary in the
mutual fund industry, securities transactions are accounted for on the date the
securities are purchased or sold. Interest income is reported on the accrual
basis. Discounts and premiums on securities purchased are amortized.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
2. FEDERAL INCOME TAXATION
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 taxable income to its shareholders. Therefore, no
federal income tax provision is required.
As of September 30, 1998, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $16,000, of which $39,000 related to
appreciated securities and $23,000 related to depreciated securities. There was
no difference between book and tax realized gains on securities transactions
for the year ended September 30, 1998. The cost of portfolio securities for
book and federal income tax purposes was $4,627,618,000 at September 30, 1998.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $11,113,000 for management services was
incurred 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.
DISTRIBUTION EXPENSES - 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, 1998, distribution expenses under
the Plan were $3,209,000. As of September 30, 1998, accrued and unpaid
distribution expenses were $232,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $5,767,000.
DIRECTORS' FEES - 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, 1998, aggregate amounts deferred and earnings thereon were
$25,000.
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. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities of $54,051,473,000
and $53,145,980,000, respectively, during the year ended September 30, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $124,000 includes $69,000 that was paid by these credits
rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C> <C>
- ------------------------------ -------- -------- ------ -------- --------
Year Ended September 30
-------- -------- ------ -------- --------
1998 1997 1996 1995 1994
-------- -------- ------ -------- --------
Net Asset Value, Beginning
of Year $1.00 $1.00 $1.00 $1.00 $1.00
-------- -------- ------ -------- --------
Income from Investment
Operations:
Net investment income .050 .049 .050 .052 .031
Total income from investment -------- -------- -------- -------- --------
operations .050 .049 .050 .052 .031
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income (.050) (.049) (.050) (.052) (.031)
-------- -------- -------- -------- --------
Total distributions (.050) (.049) (.050) (.052) (.031)
-------- ------- -------- -------- --------
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
=================================================
Total Return 5.15% 5.03% 5.06% 5.34% 3.10%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $4,604 $3,527 $3,304 $2,996 $2,738
Ratio of expenses to average
net assets .58% .57% .60% .60% .68%
Ratio of net income to
average net assets 5.02% 4.93% 4.95% 5.21% 3.14%
</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, 1998, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
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, 1998 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
October 30, 1998
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 were derived from interest on
direct U.S. Treasury obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans, and
403(b) plans need not be reported as taxable income. However, many retirement
plan 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 1999 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR RESPECTIVE 1998 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
President and Chief Executive Officer,
The Earth Technology Corporation
(international consulting engineering)
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 retired from the Board of Trustees
effective March 17, 1998. He had been a trustee of the
funds since 1991. The Trustees wish to thank him for
his many contributions to the funds.
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
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/AL/3916
Lit. No. MMF-011-1198
[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 92821-5823
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
PricewaterhouseCoopers 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, 1998, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
PREPARING FOR THE YEAR 2000
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
are updating their computer systems to process date-related information
properly following the turn of the century. Both are on track to complete
modifications of significant internal systems by the end of 1998. Testing with
business partners, vendors and other service providers is already under way. We
will continue to keep you up-to-date in our regular publications. If you'd like
more detailed information, call Shareholder Services at 800/421-0180, ext. 21,
or visit our Web site at www.americanfunds.com.
