[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
SEMI-ANNUAL REPORT
for the six months ended March 31, 1999
[illustration: fruit tree with an apple, pear, and orange being watered]
THE CASH MANAGEMENT
TRUST OF AMERICA
[illustration: pear]
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
[illustration: orange]
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
[illustration: apple]
The Tax-Exempt Money Fund of America(SM) seeks to provide income free from
regular federal income taxes, while preserving capital and maintaining
liquidity, through investments in high-quality municipal securities with
effective maturities of one year or less.
These are three of the 29 funds in The American Funds Group,(r) the nation's
third-largest mutual fund family. For more than six decades, Capital Research
and Management Company, the American Funds adviser, has invested with a
long-term focus based on thorough research and attention to risk.
For current yields, please call American FundsLine,(r) toll-free, at
800/325-3590; press 1 for yield information.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF THE FUTURE.
INVESTMENT RETURNS WILL VARY. ALTHOUGH THE FUNDS ATTEMPT TO MAINTAIN A
CONSTANT NET ASSET VALUE OF $1.00 PER SHARE, THERE CAN BE NO GUARANTEE THAT THE
FUNDS WILL BE ABLE TO DO SO. THEREFORE, YOU MAY LOSE MONEY. INVESTMENTS ARE
NOT FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER
ENTITY. 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:
Over the past six months, rates on short-term investments declined, largely in
response to three reductions of the federal funds target rate by the Federal
Reserve last fall. The investments in your American Funds money market funds
reflected this pattern, as investments that matured during the reporting period
were replaced with short-term securities paying lower interest rates.
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 2.28% (4.56%
annualized) with dividends reinvested.
THE U.S. TREASURY MONEY FUND OF AMERICA generated an income return of 1.95%
(3.90% annualized) with dividends reinvested. This income is exempt from state
and local income taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income
return of 1.21% (2.42% annualized) including reinvested dividends. This equates
to a 4.00% return at an annualized rate for investors in the 39.6% federal tax
bracket.
STABLE GROWTH AND MILD INFLATION
The U.S. economy remained strong over your funds' six-month reporting period,
despite weakness in many overseas economies. Last fall, investors' fears that
economic troubles in Russia, Asia and Latin America would affect corporate
growth prospects in the U.S. sparked a sudden flight from stocks and corporate
debt to U.S. Treasury securities. As a result, Treasury yields declined - and
declined more than other sectors of the bond market. In fact, yields on some
issues rose, particularly those on lower rated obligations. The uncertainties
in the financial markets slowed activity, both in the trading of outstanding
issues and in the issuance of new debt. To protect the U.S. financial markets
from destabilizing further, the Federal Reserve lowered the federal funds
target rate by one-quarter of a percentage point three consecutive times -
first on September 29 (from 5.50% to 5.25%), then in October (to 5.00%) and
again in November (to 4.75%).
The Federal Reserve's actions helped sustain the economy's long-term growth
record and benefited companies and consumers alike. Given the improved business
outlook and more stable financial markets, businesses continued to invest in
technology and equipment. Likewise consumers, benefiting from wage increases
and solid stock market gains, buoyed economic growth with strong spending.
During the period, inflation remained mild, with prices rising at an annualized
rate of only 1.72% as measured by the Consumer Price Index. Your funds were
able to outpace inflation by a meaningful margin.
SHORT-TERM YIELDS DECLINE STEADILY
Over the six-month period, The Cash Management Trust of America, which invests
a significant portion of its portfolio in high-quality, short-term commercial
paper, saw its yield move lower as commercial paper rates declined. The
Tax-Exempt Money Fund of America, which invests in short-term municipal
securities, and The U.S. Treasury Money Fund, which invests entirely in U.S.
Treasury bills, both experienced a similar downward trend in yields.
[Begin Sidebar]
Seven-day annualized rates/1/ and the federal funds target rate
For the quarters ended March 31, 1995 <UNDEF> March 31, 1999
[Begin line graph]
<TABLE>
<CAPTION>
Quarter Federal Funds Cash U.S. Treasury Tax Exempt Money Tax-Exempt
target rate Management Money Fund/2/ Fund (Taxable Money Fund
Trust equivalent yield)/4/ (federally
tax-free)/3/
<S> <C> <C> <C> <C> <C>
3/95 6.00 5.57 5.15 5.51 3.33
6/95 6.00 5.44 5.03 5.20 3.14
9/95 5.75 5.26 4.86 5.28 3.19
12/95 5.50 5.14 4.68 5.56 3.36
3/96 5.25 4.77 4.41 4.42 2.67
6/96 5.25 4.77 4.47 4.64 2.80
9/96 5.25 4.82 4.57 4.85 2.93
12/96 5.25 4.87 4.38 5.02 3.03
3/97 5.50 4.85 4.69 4.54 2.74
6/97 5.50 5.13 4.76 5.18 3.13
9/97 5.50 5.07 4.45 5.15 3.11
12/97 5.50 5.36 4.70 5.30 3.20
3/98 5.50 5.03 4.57 4.83 2.92
6/98 5.50 5.09 4.38 4.85 2.93
9/98 5.25 4.99 4.35 4.77 2.88
12/98 4.75 4.73 3.89 4.34 2.62
3/99 4.75 4.23 3.83 3.79 2.29
</TABLE>
[end graph]
Your funds' seven-day yields as of March 31, 1999, were as follows:
The Cash Management Trust of America +4.23%
The U.S. Treasury Money Fund of America +3.83%
The Tax-Exempt Money Fund of America +2.29%
/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.
[End Sidebar]
Your money market funds' yields are largely impacted by the federal funds
target rate, which is set by the Federal Reserve. Short-term rates tend to
follow the trend set by the federal funds target rate, though they seldom rise
or fall in tandem with it. In fact, predictions of the future direction of the
federal funds target rate often push short-term rates up or down in advance of
any action by the Federal Reserve. The chart on the preceding page demonstrates
the interplay between the federal funds target rate and the rates on your money
market funds.
A SOUND HOLDING PLACE FOR YOUR CASH
Our objective in managing your money market funds is to provide a reasonable
return while protecting the money you have invested. Many investors have used
the funds as a holding place for money targeted for emergencies or short-term
goals, or to move into equity or fixed-income funds through a regular
investment program.
Check-writing privileges and access to your funds 24 hours a day through
American Fundsline (800/325-3590) and the American Funds Web site
(www.americanfunds.com), make the funds convenient holding places for your
cash, regardless of your goal.
Thank you for selecting The American Funds Group money market funds for your
investment portfolio. We appreciate your business and look forward to reporting
to you again in six months.
Sincerely,
/s/Paul G. Haaga, Jr. /s/Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
May 14, 1999
<TABLE>
<S> <C> <C> <C>
The Cash Management Trust of America
Investment Portfolio
March 31, 1999
Yield at Principal Market
Acquisition Amounts Value
(000) (000)
----- -----
Bankers' Acceptances - 0.49%
Wachovia Bank
April 15, 1999 4.83% $25,000 $24,950
-----
Total Bankers' Acceptances 24,950
-----
Certificates of Deposit - 1.55%
Mellon Bank
4.86% May 6, 1999 4.86 25,000 25,000
National Westminster Bank PLC
4.92% May 6, 1999 4.86 25,000 25,001
Rabobank Nederland N.V.
4.85% April 1, 1999 4.84 29,000 29,000
-----
Total Certificates of Deposit 79,001
-----
Commercial Paper - 59.03%
A.I. Credit Corp
April 13, 1999 4.85 25,000 24,956
April 22, 1999 4.83 15,000 14,956
May 7, 1999 4.85 30,000 29,852
Abbey National North America
May 7, 1999 4.85 24,000 23,881
Abbott Laboratories
April 5, 1999 4.84 40,000 39,973
April 21, 1999 4.83 35,000 34,902
ABN-AMRO North America Finance Inc.
April 6, 1999 4.84 30,000 29,976
American Express Credit Corp.
April 15, 1999 4.84 30,000 29,940
American General Finance Corp.
May 13, 1999 4.88 25,000 24,855
American Home Products Corp.
May 13, 1999 (1) 4.85 25,000 24,856
American Honda Finance Corp.
April 14, 1999 4.87 25,000 24,953
Ameritech Corp.
April 27, 1999 4.83 45,000 44,838
May 24, 1999 4.84 30,000 29,784
Anheuser-Busch Cos., Inc.
April 28, 1999 4.82 25,000 24,907
Archer Daniels Midland Co.
April 16, 1999 4.83 30,000 29,936
Atlantic Richfield Co.
April 19, 1999 (1) 4.85 25,800 25,734
Barclays U.S. Funding Corp.
May 6, 1999 4.86 25,000 24,880
Bayer Corp.
April 6, 1999 (1) 4.85 40,000 39,968
May 4, 1999 (1) 4.87 35,000 34,840
Bell Atlantic Financial Services, Inc.
April 7, 1999 4.85 25,000 24,976
BellSouth Capital Funding Corp.
April 5, 1999 (1) 4.80 35,000 34,977
April 13, 1999 (1) 4.83 40,000 39,930
Bestfoods
April 30, 1999 (1) 4.86 25,000 24,899
BP America Inc.
April 23, 1999 4.83 50,000 49,847
April 27, 1999 4.82 25,000 24,910
British Gas Capital Inc.
April 12, 1999 4.85 25,000 24,960
Campbell Soup Co.
April 1, 1999 4.83 20,000 19,997
April 27, 1999 4.86 20,000 19,928
Canadian Wheat Board
April 26, 1999 4.84 25,000 24,913
Chevron USA Inc.
April 6, 1999 4.82 25,000 24,980
April 12, 1999 4.85 50,000 49,919
Chrysler Financial Corp.
April 13, 1999 4.86 25,000 24,956
CIT Group, Inc.
April 1, 1999 4.82 30,000 29,996
Coca-Cola Co.
April 19, 1999 4.85 50,000 49,873
May 4, 1999 4.85 25,000 24,886
Commercial Credit Co.
April 12, 1999 4.89 25,000 24,960
CBA (Delaware) Finance Inc.
April 26, 1999 4.84 25,000 24,913
John Deer Capital Corp.
April 20, 1999 4.88 30,000 29,919
Diageo Capital PLC
April 12, 1999 (1) 4.84 25,000 24,960
Duke Energy Corp.
April 7, 1999 4.84 25,000 24,977
Duke University
April 5, 1999 4.85 13,500 13,491
E.I. du Pont de Nemours and Co.
April 6, 1999 4.81 25,000 24,980
April 13, 1999 4.83 25,000 24,957
May 4, 1999 4.83 25,000 24,887
Eastman Kodak Co.
April 16, 1999 4.83 25,000 24,947
Emerson Electric Co.
April 1, 1999 4.85 35,000 34,995
April 8, 1999 4.84 25,000 24,973
April 14, 1999 4.83 15,000 14,972
Equilon Enterprises LLC
May 10, 1999 4.88 25,000 24,866
Exxon Imperial U.S. Inc.
April 27, 1999 (1) 4.82 25,000 24,910
Ford Motor Credit Co.
May 3, 1999 4.90 30,000 29,866
France Telecom, SA
May 3, 1999 4.85 20,000 19,912
May 11, 1999 4.85 25,000 24,863
Gannett Co. , Inc.
April 13, 1999 (1) 4.84 25,000 24,957
General Electric Capital Corp.
April 19, 1999 4.87 50,000 49,873
General Motors Acceptance Corp.
April 23, 1999 4.87 25,000 24,923
Glaxo Wellcome PLC
April 1, 1999 (1) 4.81 21,800 21,797
April 5, 1999 (1) 4.81 21,000 20,986
May 21, 1999 (1) 4.85 25,000 24,830
Halifax PLC
April 27, 1999 4.82 25,000 24,910
Halliburton Co.
April 20, 1999 4.86 25,000 24,933
Harvard University
April 21, 1999 4.83 25,000 24,930
H.J. Heinz Co.
April 20, 1999 4.83 30,000 29,920
Household Finance Corp.
April 7, 1999 4.86 25,000 24,977
IBM Credit Corp.
April 21, 1999 4.86 25,000 24,929
International Lease Finance Corp.
April 16, 1999 4.83 25,000 24,950
Johnson & Johnson
April 16, 1999 (1) 4.85 19,500 19,458
Kellogg Co.
May 14, 1999 4.85 25,000 24,853
KFW International Finance Inc.
April 7, 1999 4.81 25,000 24,977
Kimberly-Clark World Wide Inc.
April 29, 1999 (1) 4.84 50,000 49,806
Lloyds Bank PLC
May 24, 1999 4.84 25,000 24,820
Lucent Technologies Inc.
April 6, 1999 4.81 25,000 24,980
Minnesota Mining and Manufacturing Co.
April 14, 1999 4.82 40,000 39,926
April 26, 1999 4.81 35,000 34,879
Motiva Enterprises LLC
May 5, 1999 4.88 25,000 24,882
Motorola Credit Corp.
April 1, 1999 4.81 19,000 18,997
National Australia Funding (Delaware) Inc.
May 6, 1999 4.85 25,000 24,880
Nestle Capital Corp.
April 8, 1999 4.81 25,000 24,973
Novartis Finance Corp.
April 5, 1999 (1) 4.83 15,000 14,990
April 6, 1999 (1) 4.86 50,000 49,960
Panasonic Finance America Inc.
April 7, 1999 (1) 4.85 25,000 24,977
Pfizer Inc.
April 12, 1999 (1) 4.83 36,000 35,942
April 28, 1999 (1) 4.84 39,000 38,854
Procter & Gamble Co.
April 21, 1999 4.82 50,000 49,860
May 17, 1999 4.83 25,000 24,843
Reed Elsevier, Inc.
April 13, 1999 (1) 4.85 30,000 29,948
April 14, 1999 (1) 4.83 45,000 44,916
Repsol International Finance BV
April 5, 1999 4.82 15,000 14,990
Rio Tinto America Inc.
May 4, 1999 (1) 4.88 25,000 24,886
Sara Lee Corp.
May 3, 1999 4.84 25,000 24,890
SBC Communications Inc.
May 7, 1999 (1) 4.85 25,000 24,876
Schering Corp.
May 6, 1999 4.85 20,000 19,903
Shell Finance (U.K.) PLC
April 29, 1999 4.82 25,000 24,903
Sherwin-Williams Co.
April 13, 1999 (1) 4.84 23,000 22,960
Siemens Capital Corp.
May 14, 1999 4.84 75,000 74,560
St. Paul Companies, Inc.
April 15, 1999 (1) 4.85 25,000 24,950
Statoil (Den norske stats oljeselskap AS)
April 20, 1999 (1) 4.85 25,000 24,933
Svenska Handelsbanken Inc.
April 6, 1999 4.84 25,000 24,980
Texaco Inc.
April 8, 1999 4.83 30,000 29,968
Toronto-Dominion Holdings (USA), Inc.
May 24, 1999 4.84 25,000 24,820
Toyota Motor Credit Corp.
April 16, 1999 4.85 25,000 24,946
U S WEST Communications, Inc.
April 5, 1999 4.86 25,000 24,983
Vattenfall Treasury Inc.
May 19, 1999 4.87 25,000 24,836
Warner-Lambert Co.
April 28, 1999 (1) 4.87 25,000 24,906
Westpac Capital Corp.
April 12, 1999 4.84 25,000 24,960
Xerox Capital (Europe) PLC
April 20, 1999 4.86 25,000 24,933
Yale University
April 16, 1999 4.83 15,000 14,968
-----
Total Commercial Paper 3,019,069
-----
Federal Agency Discount Notes - 37.52%
Fannie Mae
April 1, 1999 4.74 59,465 59,457
April 6, 1999 4.78 12,275 12,265
April 8, 1999 4.82 24,000 23,974
April 9, 1999 4.82 60,000 59,928
April 15, 1999 4.82 40,000 39,920
April 19, 1999 4.80 60,000 59,861
May 4, 1999 4.84 11,000 10,950
Federal Farm Credit Bank
April 9, 1999 4.77 25,000 24,971
April 16, 1999 4.76 20,000 19,958
April 22, 1999 4.75 30,000 29,913
April 23, 1999 4.77 16,800 16,749
Federal Home Loan Banks
April 5, 1999 4.76 23,750 23,735
April 9, 1999 4.78 216,631 216,376
April 21, 1999 4.77 70,000 69,806
April 23, 1999 4.77 41,600 41,474
April 28, 1999 4.83 25,000 24,907
April 30, 1999 4.80 50,000 49,801
May 5, 1999 4.77 20,000 19,908
May 12, 1999 4.79 40,000 39,778
May 21, 1999 4.78 70,000 69,530
May 26, 1999 4.79 72,500 71,963
Freddie Mac
April 6, 1999 4.78 34,495 34,468
April 8, 1999 4.79 38,800 38,759
April 14, 1999 4.83 75,200 75,060
April 15, 1999 4.80 25,000 24,950
April 22, 1999 4.81 119,600 119,252
April 26, 1999 4.80 90,000 89,689
April 29, 1999 4.81 70,000 69,734
April 30, 1999 4.82 75,000 74,700
May 3, 1999 4.84 38,500 38,331
May 7, 1999 4.82 100,000 99,509
May 10, 1999 4.78 50,000 49,736
May 12, 1999 4.81 35,000 34,805
May 18, 1999 4.77 50,000 49,684
May 27, 1999 4.80 20,000 19,849
International Bank for Reconstruction
and Development
April 9, 1999 4.76 16,215 16,196
Student Loan Marketing Assn.
September 16, 1999 (2) 4.85 75,000 74,993
Tennessee Valley Authority
May 7, 1999 4.79 24,000 23,882
-----
Total Federal Agency Discount Notes 1,918,821
-----
U.S. Treasury Securities - 1.46%
U.S. Treasury bills
April 22, 1999 4.78 75,000 74,783
-----
Total U.S. Treasury Securities 74,783
-----
Total Investment Securities (cost: $5,116,612,000) 5,116,624
Excess of payables over cash and receivables 2,467
Net Assets $5,114,157
(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 acquisition reflect current
coupon rate.
See Notes to the Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
Cash Management Trust of America
Financial Statements Unaudited
- ---------------------------------------- --------- ---------
Statement of Assets and Liabilities
at March 31, 1999 (dollars in thousands)
- ---------------------------------------- --------- ---------
Assets:
Investment securities at market
(cost: $5,116,612) $5,116,624
Cash 2,015
Receivables for--
Sales of fund's shares $48,407
Accrued interest 496 48,903
--------- ---------
5,167,542
Liabilities:
Payables for--
Repurchases of fund's shares 50,897
Dividends payable 919
Management services 1,222
Accrued expenses 347 53,385
--------- ---------
Net Assets at March 31, 1999 -
Equivalent to $1.00 per share on
5,114,139,339 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $5,114,157
===========
Statement of Operations
for the six months ended March 31, 1999 (dollars in thousands)
--------- ---------
Investment Income:
Income:
Interest $ 124,725
Expenses:
Management services fee $6,932
Distribution expenses 2,053
Transfer agent fee 3,189
Reports to shareholders 181
Registration statement and prospectus 463
Postage, stationery and supplies 1,076
Trustees' fees 18
Auditing and legal fees 53
Custodian fee 198
Taxes other than federal income tax 60 14,223
--------- ---------
Net investment income 110,502
---------
Change in Unrealized Appreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of period 16
End of period 12
---------
Net change in unrealized appreciation
on investments (4)
---------
Net Increase in Net Assets
Resulting from Operations $110,498
==========
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- --------- ---------
Six months Year
ended ended
3/31/99* 9/30/98
Operations: --------- ---------
Net investment income $ 110,502 $ 193,772
Net change in unrealized appreciation
on investments (4) (3)
--------- ---------
Net increase in net assets
resulting from operations 110,498 193,769
--------- ---------
Dividends Paid to Shareholders (110,498) (193,772)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
7,073,853,617 and 12,930,964,595
shares, respectively 7,073,854 12,930,965
Proceeds from shares issued in
reinvestment of net investment income
dividends:
102,261,360 and 177,120,323 shares,
respectively 102,239 177,120
Cost of shares repurchased:
6,665,863,296 and 12,030,835,086
shares, respectively (6,665,841) (12,030,835)
--------- ---------
Net increase in net assets resulting
from capital share transactions 510,252 1,077,250
--------- ---------
Total Increase in Net Assets 510,252 1,077,247
Net Assets:
Beginning of period 4,603,905 3,526,658
--------- ---------
End of period $5,114,157 $4,603,905
========== ==========
* Unaudited
See Notes to Financial Statements
</TABLE>
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. 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.
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 March 31, 1999, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $12,000, of which $20,000 related to
appreciated securities and $8,000 related to depreciated securities. There was
no difference between book and tax realized gains on securities transactions
for the six months ended March 31, 1999. The cost of portfolio securities for
book and federal income tax puposes was $5,116,612,000 at March 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $6,932,000 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 six months ended March 31, 1999, distribution expenses
under the Plan were $2,053,000. As of March 31, 1999, accrued and unpaid
distribution expenses were $262,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $3,189,000.
DEFERRED TRUSTEES' 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 March 31, 1999, aggregate deferred compensation and earnings
thereon since the plan's adoption (1993), net of any payment to trustees, 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, including maturities, of investment
securities of $24,633,842,000 and $24,266,091,000 respectively, during the six
months ended March 31,1999.
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 $198,000 includes $54,000 that was paid by these credits
rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Per-Share Data and Ratios Six months Year ended
ended September 30
3/31/1999 (1) 1998 1997 1996 1995 1994
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 .023 .050 .049 .050 .052 .031
-------- -------- -------- -------- -------- --------
Total from investment operations .023 .050 .049 .050 .052 .031
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income (.023) (.050) (.049) (.050) (.052) (.031)
-------- -------- -------- -------- -------- --------
Total distributions (.023) (.050) (.049) (.050) (.052) (.031)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return 2.28% (2) 5.15% 5.03% 5.06% 5.34% 3.10%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $5,114 $4,604 $3,527 $3,304 $2,996 $2,738
Ratio of expenses to average net assets .29% (2) .58% .57% .60% .60% .68%
Ratio of net income to average net assets 2.27% (2) 5.02% 4.93% 4.95% 5.21% 3.14%
(1) Unaudited
(2) Based on operations for the period shown
and, accordingly, not representative of a
full year.
</TABLE>
<TABLE>
<S> <C> <C> <C>
The U.S. Treasury Money Fund of America
Investment Portfolio
March 31, 1999
Principal Market
Yield at Amount Value
Acquisition (000) (000)
-------- -------- --------
U.S. Treasury Securities - 99.68%
U.S. Treasury bills 4/1/99 4.41% - 4.53% $ 36,450 $ 36,446
U.S. Treasury bills 4/8/99 4.36% - 4.40% 39,670 39,634
U.S. Treasury bills 4/15/99 4.36% 34,300 34,241
U.S. Treasury bills 4/19/99 4.79% 80,000 79,798
U.S. Treasury bills 4/22/99 4.33% - 4.80% 101,115 100,839
U.S. Treasury bills 4/29/99 4.41% - 4.49% 35,940 35,811
U.S. Treasury bills 5/6/99 4.41% - 4.45% 52,950 52,722
U.S. Treasury bills 5/13/99 4.43% 2,580 2,566
U.S. Treasury bills 5/20/99 4.46% 42,900 42,651
U.S. Treasury bills 5/27/99 4.43% - 4.58% 4,380 4,351
--------
Total Investment Securities
(cost: $429,026,000) 429,059
Excess of cash and receivables
over payables 1,375
--------
Net Assets $430,434
========
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
U.S. Treasury Money Fund of America
Financial Statements Unaudited
- -------------------------------- ------- -------
Statement of Assets and Liabilities
at March 31, 1999 (dollars in thousands)
- -------------------------------- ------- -------
Assets:
Investment securities at market
(cost: $429,026) $429,059
Cash 430
Receivables for --
Sales of fund's shares 4,065
-------
433,554
Liabilities:
Payables for --
Repurchases of fund's shares $2,954
Dividends payable 59
Management services 107 3,120
------- -------
Net Assets at March 31, 1999 --
Equivalent to $1.00 per share on
430,426,579 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $430,434
=======
Statement of Operations
for six months ended March 31, 1999 (dollars in thousands)
------- -------
Investment Income:
Income:
Interest $ 8,952
Expenses:
Management services fee $604
Distribution expenses 202
Transfer agent fee 196
Reports to shareholders 12
Registration statement and prospectus 85
Postage, stationery and supplies 38
Trustees' fees 8
Auditing and legal fees 24
Custodian fee 8
Taxes other than federal income tax 3 1,180
------- -------
Net investment income 7,772
-------
Change in Unrealized Appreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of period 219
End of period 33
-------
Net change in unrealized
appreciation on investments (186)
-------
Net Increase in Net Assets Resulting
from Operations $7,586
=======
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------- -------
Six months Year ended
ended
3/31/1999 * 9/30/1998
Operations: ------- -------
Net investment income 7,772 13,215
Net change in unrealized
appreciation on investments (186) 141
------- -------
Net increase in net assets
resulting from operations 7,586 13,356
------- -------
Dividends Paid to Shareholders (7,798) (13,215)
------- -------
Capital Share Transactions:
Proceeds from shares sold:
427,685,671 and 660,343,206
shares, respectively 427,686 660,344
Proceeds from shares issued in
reinvestment of net investment
income dividends:
7,268,629 and 12,201,748
shares, respectively 7,268 12,201
Cost of shares repurchased:
359,918,112 and 596,431,556
shares, respectively (359,918) (596,431)
------- -------
Net increase in net assets resulting
from capital share transactions 75,036 76,114
------- -------
Total Increase in Net Assets 74,824 76,255
Net Assets:
Beginning of period 355,610 279,355
------- -------
End of period $430,434 $355,610
======= =======
*Unaudited
See Notes to Financial Statements
</TABLE>
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The U.S. Treasury Money Fund 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 U.S. Treasury securities maturing in one year or less.
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. 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.
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 March 31, 1999, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $33,000 of which $35,000 related to
appreciated securities and $2,000 related to depreciated securities. There was
no difference between book and tax realized gains on securities transactions
for the six-months ended March 31, 1999. The cost of portfolio securities for
book and federal income tax purposes was $429,026,000 at March 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $604,000 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 0.30% of the first $800 million of
average net assets and 0.285% of such assets in excess of $800 million.
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 six months ended March 31, 1999, distribution expenses
under the Plan were $202,000. As of March 31, 1999, accrued and unpaid
distribution expenses were $29,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $196,000.
DEFERRED TRUSTEES' 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 March 31, 1999, aggregate deferred compensation and earnings
thereon since the plan's adoption (1993), net of any payment to trustees, were
$11,000.
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.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales, including maturities, of investment
securities of $946,841,000 and $881,359,000, respectively, during the six
months ended March 31, 1999.
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 $8,000 includes $7,000 that was paid by these credits
rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Per-Share Data and Ratios Six months Year Ended
ended September 30
3/31/1999 (1) 1998 1997 1996 1995 1994
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 .020 .045 .046 .046 .048 .028
----- ----- ----- ----- ----- -----
Total from investment operations .020 .045 .046 .046 .048 .028
----- ----- ----- ----- ----- -----
Less Distributions:
Dividends from net investment income (.020) (.045) (.046) (.046) (.048) (.028)
----- ----- ----- ----- ----- -----
Total distributions (.020) (.045) (.046) (.046) (.048) (.028)
----- ----- ----- ----- ----- -----
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return 1.95% 4.63% 4.71% 4.66% 4.89% 2.89%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $430 $356 $279 $256 $231 $199
Ratio of expenses to average net assets .30% (2) .59% .53% .65% .67% .67%
Ratio of net income to average net assets 1.94% (2) 4.49% 4.61% 4.53% 4.79% 2.91%
(1) Unaudited
(2) Based on operations for the period
shown and, accordingly, not representative of
a full year.
</TABLE>
<TABLE>
<S> <C> <C> <C>
The Tax-Exempt Money Fund of America
Investment Portfolio
March 31, 1999
Principal Market
Yield at Amount Value
Municipal Securities Acquisition (000) (000)
- -------------------------------------------------------- -------- -------- --------
Alaska - 3.83%
Housing Finance Corporation General Purpose Bonds, 1991 Series C, 3.05% 4/7/99* 3.05 4,100 4,100
City of Vadez, Marine Terminal Revenue Refunding Bonds
(ARCO Transportation Alaska, Inc. Project), 1994 Series A, TECP:
3.00% 4/14/99 3.00 1,500 1,500
3.10% 5/11/99 3.10 1,700 1,700
City of Valdez, Variable Rate Marine Terminal Revenue Refunding Bonds
(Mobil Alaska Pipeline Co. Project), 1993 Series A, 3.05% 4/7/99* 3.05 1,700 1,700
Arizona - 4.68%
County of Apache, Industustrial Development Revenue Bonds
(Tuscon Electric Power Co. Springerville Project), 1983 Series B, 3.05% 4/7/99* 3.05 1,000 1,000
Salt River Project Agricultural Improvement and Power District, Promissory Notes,
Series G, TECP:
2.70% 4/6/99 2.70 5,000 5,000
2.95% 4/26/99 2.95 2,000 2,000
2.80% 5/10/99 2.80 2,000 2,000
3.10% 5/25/99 3.10 1,000 1,000
California - 7.37%
Revenue Anticipation Notes, 1998-99, 4.00% 6/30/99 2.88 8,000 8,020
County of Los Angeles, 1998-99 Tax and Revenue Anticipation Notes,
Series A, 4.50% 6/30/99 2.61 9,285 9,318
Colorado - 1.70%
Tax and Revenue Anticipation Notes, Series 1998A, 4.00% 4/7/99 2.64 4,000 4,008
Connecticut - 1.04%
Health and Educational Facilities Authority Revenue Bonds, Yale University,
Series S, TECP, 2.60% 4/5/99 2.60 2,435 2,435
Florida - 7.62%
Jacksonville Electric Authority Electric System, Series C-1, TECP:
2.80% 4/13/99 2.80 1,000 1,000
2.70% 4/14/99 2.70 1,000 1,000
2.90% 5/3/99 2.90 1,200 1,200
2.90% 5/5/99 2.90 2,200 2,200
3.15% 6/3/99 3.15 4,000 4,000
Florida Local Government Finance Commission Pooled Commercial Paper Notes,
Series A, TECP:
2.90% 5/6/99 2.90 2,500 2,500
3.10% 6/2/99 3.10 1,630 1,630
Florida Municipal Power Agency Initial Pooled Loan Project Commercial Paper Notes,
Series A, TECP:
2.95% 5/3/99 2.95 1,000 1,000
3.05% 5/10/99 3.05 2,000 2,000
3.05% 5/19/99 3.05 1,400 1,400
Hawaii - 0.55%
City and County of Honolulu, General Obligation Bond Anticipation Notes,
TECP, 2.90% 4/23/99 2.90 1,300 1,300
Idaho - 2.43%
Tax Anticipation Notes, Series 1998, 4.50% 6/30/99 2.86 5,700 5,719
Iowa - 0.85%
Iowa School Cash Anticipation Program, Iowa School Corporations,
Warrant Certificates, 1998-99 Series A, FSA Insured, 4.50% 6/25/99 3.66 2,000 2,006
Kentucky - 7.64%
Kentucky Asset/Liability Commission General Fund
Tax and Revenue Anticipation Notes, 1998 Series A, 4.50% 6/25/99 2.56 9,150 9,177
Pendleton County Multi-County Lease Revenue Bonds (Kentucky Association of Counties
Leasing Trust Program), Series 1989, Money Market Municipal, TECP:
2.95% 4/23/99 2.95 1,500 1,500
2.75% 5/4/99 2.75 2,785 2,785
2.75% 5/7/99 2.75 4,500 4,499
Louisiana - 0.47%
South Louisiana Port Commission Port Facility Revenue Bonds (Holnam Inc. Project),
Series 1997, AMT, 3.10% 4/7/99* 3.10 1,100 1,100
Maryland - 8.09%
Maryland Health and Higher Education Facilities Authority Pooled Loan Program
Revenue Notes (The Johns Hopkins Hospital):
Series C, TECP, 3.15% 6/2/99 3.15 2,200 2,200
Series D, 2.95% 4/1/99* 2.95 1,335 1,335
Anne Arundel County Economic Development Revenue Bonds
(Baltimore Gas and Electric Co. Project), TECP:
Series 1985, 2.75% 4/8/99 2.75 1,000 1,000
Series 1985, 2.80% 5/6/99 2.80 3,000 3,000
Series 1988, AMT, 3.15% 5/13/99 3.15 2,000 2,000
Series 1988, AMT, 3.15% 5/26/99 3.15 3,500 3,500
Montgomery County Consolidated Commercial Paper Bond Anticipation Notes,
Series 1995, TECP:
2.65% 4/5/99 2.65 3,000 3,000
2.95% 5/3/99 2.95 3,000 3,000
Michigan - 0.43%
Regents of the University of Michigan, Public Higher Education Revenue Notes,
Series B, TECP, 3.05% 5/19/99 3.05 1,000 1,000
Minnesota - 1.28%
City of Rochester, Health Care Facilities Revenue Bonds (Mayo Foundation/
Mayo Medical Center), Adjustable Tender Series 1992B, TECP, 2.85% 5/4/99 2.85 3,000 3,000
Missouri - 1.53%
Higher Education Loan Authority, Adjustable Rate Demand
Student Loan Revenue Bonds, AMT:
Series 1990A, 3.10% 4/7/99* 3.10 1,600 1,600
Series 1990B, 3.10% 4/7/99* 3.10 1,000 1,000
City of Columbia, Special Obligation Insurance Reserve Bonds,
Series 1988A, 2.95% 4/7/99* 2.95 1,000 1,000
Montana - 1.49%
Tax and Revenue Anticipation Notes, Series 1998, 3.50% 6/30/99 2.84 3,500 3,504
New Jersey - 3.40%
Tax and Revenue Anticipation Notes, Series 1999A:
2.65% 4/27/99 2.65 2,500 2,500
3.10% 5/13/99 3.10 3,500 3,500
3.05% 5/18/99 3.05 2,000 2,000
New Mexico - 0.43%
Tax and Revenue Anticipation Notes, 1998-99, Series 1998A, 3.75% 6/30/99 2.61 1,000 1,001
North Carolina - 4.75%
Educational Facilities Finance Agency Revenue Bonds (Duke University Project):
Series 1992A, 2.95% 4/1/99* 2.95 2,800 2,800
Series 1991D, 2.95% 4/1/99* 2.95 1,800 1,800
Wake County Industrial Facilities and Pollution Control Financing Authority,
Pollution Control Refunding Revenue Bonds (Carolina Power & Light Company
Project), TECP:
Series 1990B, AMT, 2.90% 4/1/99 2.90 1,000 1,000
Series 1990A, 3.10% 4/7/99 3.10 3,100 3,100
Board of Governors of the University of North Carolina at Chapel Hill Athletic
Facilities Revenue Bonds, Series 1998, 2.95% 4/1/99* 2.95 2,500 2,500
Ohio - 4.33%
Air Quality Development Authority Pollution Control Revenue Bonds, Series 1988
(Duquesne Light Co. Project), TECP, AMT:
2.90% 4/8/99 2.90 1,000 1,000
3.20% 5/28/99 3.20 1,000 1,000
Water Development Authority Pollution Control Revenue Bonds, Series 1988
(Duquesne Light Co. Project), TECP, AMT:
2.75% 4/9/99 2.75 3,000 3,000
2.80% 4/15/99 2.80 1,500 1,500
Ohio State University Revenue Bonds, Series 1998A, TECP:
2.95% 5/10/99 2.95 2,500 2,500
3.05% 5/12/99 3.05 1,200 1,200
Pennsylvania - 7.16%
Higher Education Assistance Agency Student Loan Adjustable Rate Revenue Bonds,
1997 Series A, AMT, 3.15% 4/7/99* 3.15 2,000 2,000
Beaver County Industrial Development Authority Pollution Control
Revenue Refunding Bonds (Duquesne Light Co. Beaver Valley Project),
1990 Series C, TECP, 2.80% 4/12/99 2.80 2,000 2,000
Carbon County Industrial Development Authority Resource Recovery Revenue Bonds
(Panther Creek Partners Project), 1991 Series A, TECP, AMT, 2.95% 5/7/99 2.95 1,250 1,250
Delaware County Industrial Development Authority Pollution Control
Revenue Refunding Bonds (Philadelphia Electric Co. Project),
1998 Series A, FGIC Insured, TECP:
2.70% 4/7/99 2.70 2,000 2,000
3.15% 6/4/99 3.15 4,600 4,600
Delaware County Industrial Development Authority Solid Waste Revenue Bonds
(Scott Paper Co. Project), Series 1984D, 3.00% 4/7/99* 3.00 1,000 1,000
Venango Industrial Development Authority Resource Recovery Revenue Bonds
(Scrubgrass Project), Series 1990A, TECP, AMT:
2.95% 5/11/99 2.95 1,000 1,000
3.15% 5/12/99 3.15 3,000 3,000
South Carolina - 1.00%
York County Pollution Control Facilities Revenue Refunding Bonds
(Duke Power Company Project), Series 1990, 3.15% 5/11/99 3.15 2,350 2,350
Tennessee - 1.53%
General Obligation Bond Anticipation Notes, Series 1998A, 2.90% 4/7/99* 2.90 3,600 3,600
Texas - 13.68%
Tax and Revenue Anticipation Notes, Series 1998, 4.50% 8/31/99 2.71 9,300 9,354
Board of Regents of the University of Texas System Revenue Financing System
Commercial Paper Notes, Series A, TECP:
3.05% 5/17/99 3.05 2,500 2,500
3.05% 5/20/99 3.05 2,500 2,500
3.10% 5/20/99 3.10 1,000 1,000
3.10% 6/1/99 3.10 1,500 1,500
Brazos Higher Education Authority Inc. Student Loan Revenue Bonds,
Series 1993B-1, AMT, 3.00% 4/7/99* 3.00 1,000 1,000
Brazos River Authority Collateralized Pollution Control Revenue Refunding Bonds
(Texas Utilities Electric Co. Project), Series 1997D, AMT, 3.15% 4/7/99* 3.15 3,000 3,000
Harris County General Obligation Notes, Series A, TECP, 3.10% 5/21/99 3.10 2,315 2,315
City of Houston, General Obligation Commercial Paper Notes, TECP:
Series B, 2.60% 4/1/99 2.60 2,000 2,000
Series B, 2.60% 4/5/99 2.60 2,000 2,000
Series C, 2.60% 4/7/99 2.60 3,000 3,000
City of Houston, Tax and Revenue Anticipation Notes, Series 1998, 4.25% 6/30/99 3.48 2,000 2,006
Utah - 2.38%
Board of Regents, Student Loan Revenue Bonds,
1988 Series C, AMBAC Insured, AMT, 3.10% 4/7/99* 3.10 1,100 1,100
Intermountain Power Agency Variable Rate Power Supply Revenue Bonds,
1985 Series E, TECP, 3.00% 4/29/99 3.00 4,500 4,500
Virginia - 0.47%
Alexandria Redevelopment and Housing Authority Residential Care Facility First
Mortgage Revenue Bonds (Goodwin House), Multi-Mode Series 1996B, 3.20% 4/1/99* 3.20 1,100 1,100
Washington - 2.38%
Port of Seattle, Subordinate Lien Revenue Notes, Series A, TECP, 2.80% 5/4/99 2.80 2,600 2,600
Port of Seattle, Variable Rate General Obligation Bonds, Series 1985, 3.05% 4/7/99* 3.05 3,000 3,000
West Virginia - 0.68%
The County Commission of Marion County, Solid Waste Disposal Facility
Revenue Bonds, 1990 Series A (Grant Town Cogeneration Project), AMT, 3.10% 4/7/99* 3.10 1,600 1,600
Wisconsin - 4.47%
State Operating Notes of 1998, 4.50% 6/15/99 2.66 4,500 4,512
Transportation Revenue Commercial Paper Notes of 1997, Series A, TECP:
2.95% 4/28/99 2.95 2,486 2,486
2.75% 5/5/99 2.75 3,528 3,528
Wyoming - 1.28%
Tax and Revenue Anticipation Notes, Series 1998, 4.00% 6/25/99 2.77 3,000 3,006
--------
Total Tax-Exempt Securities (cost: $232,744,000) 232,744
Excess of cash and receivables over payables 2,498
--------
Net Assets $235,242
</TABLE>
<TABLE>
<S> <C> <C>
The Tax-Exempt Money Fund of America
Financial Statements Unaudited
- -------------------------------------- -------- --------
Statement of Assets and Liabilities
at March 31, 1999 (dollars in thousands)
- ------------------------------------- -------- --------
Assets:
Investment securities at market
(cost: $232,744) $232,744
Cash 479
Receivables for--
Sales of fund's shares $1,274
Accrued interest 2,139 3,413
-------- --------
236,636
Liabilities:
Payables for--
Repurchases of fund's shares 1,242
Dividends payable 29
Management services 104
Accrued expenses 19 1,394
-------- --------
Net Assets at March 31, 1999 --
Equivalent to $1.00 per share on
235,265,301 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $235,242
=======
Statement of Operations
for the six months ended March 31, 1999 (dollars in thousands)
-------- --------
Investment Income:
Income:
Interest $3,338
Expenses:
Management services fee $477
Distribution expenses 56
Transfer agent fee 73
Reports to shareholders 11
Registration statement and prospectus 38
Postage, stationery and supplies 28
Trustees' fees 7
Auditing and legal fees 33
Custodian fee 18
Taxes other than federal income tax 4
Other expenses 13
--------
Total expenses before reimbursement 758
Reimbursement of expenses 50 708
-------- --------
Net investment income 2,630
--------
Change in Unrealized Appreciation (Depreciation)
on Investments:
Net unrealized appreciation (depreciation)
on investments:
Beginning of period 46
End of period (1)
--------
Net change in unrealized appreciation
(depreciation) on investments (47)
--------
Net Increase in Net Assets Resulting
from Operations $2,583
=======
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- -------- --------
Six months Year
ended ended
3/31/99* 9/30/98
Operations: -------- --------
Net investment income $ 2,630 $ 5,296
Net change in unrealized appreciation
(depreciation) on investments (47) 37
-------- --------
Net increase in net assets
resulting from operations 2,583 5,333
-------- --------
Dividends Paid to Shareholders (2,629) (5,316)
-------- --------
Capital Share Transactions:
Proceeds from shares sold:
220,541,058 and 373,325,429
shares, respectively 220,541 373,325
Proceeds from shares issued in
reinvestment of net investment
income dividends:
2,378,291 and 4,856,600 shares,
respectively 2,378 4,857
Cost of shares repurchased:
185,825,499 and 339,912,546
shares, respectively (185,825) (339,912)
-------- --------
Net increase in net assets
resulting from capital share
transactions 37,094 38,270
-------- --------
Total Increase in Net Assets 37,048 38,287
Net Assets:
Beginning of period 198,194 159,907
-------- --------
End of period $235,242 $198,194
======= =======
* Unaudited
See Notes to Financial Statements
</TABLE>
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt Money Fund 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 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.
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. 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.
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 investment income to its shareholders. Therefore, no
federal income tax provision is required.
As of March 31, 1999, there was no net unrealized appreciation or
depreciation on investments for book and federal income tax purposes since
$13,000 related to appreciated securities and $13,000 related to depreciated
securities. There was no difference between book and tax realized gains on
securities transactions for the six months ended March 31, 1999. The cost of
portfolio securities for book and federal income tax purposes was $232,744,000
at March 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $477,000 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 0.44% of the first $200 million of
average net assets; 0.42% of such assets in excess of $200 million but not
exceeding $600 million; 0.38% of such assets in excess of $600 million but not
exceeding $1.2 billion; and 0.34% of such assets in excess of $1.2 billion.
The Investment Advisory and Service Agreement provides for a fee reduction to
the extent that annual operating expenses exceed 0.75% of the average daily net
assets of the fund, during a period which will terminate at the earlier of such
time as no reimbursement has been required for a period of twelve consecutive
months, provided no advances are outstanding, or October 2, 1999. CRMC has also
voluntarily agreed to waive its fees to the extent necessary to ensure that the
fund's expenses do not exceed 0.65% of the average daily net assets. Expenses
that are not subject to these limitations are interest, taxes, brokerage
commissions, transaction costs, and extraordinary expenses. Fee reductions were
$50,000 for the six months ended March 31, 1999. There can be no assurance that
this voluntary fee waiver will continue in the future.
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 six months ended March 31, 1999, distribution expenses
under the Plan were $56,000. As of March 31, 1999, accrued and unpaid
distribution expenses were $8,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $73,000.
DEFERRED TRUSTEES' 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 March 31, 1999, aggregate amounts deferred and earnings thereon
were $10,000. 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.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales, including maturities, of investment
securities of $612,486,000 and $577,019,000, respectively, during the six
months ended March 31, 1999. 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 $18,000 includes $4,000
that was paid by these credits rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Per-Share Data and Ratios Six months Year Ended
ended September 30
3/31/99 (1) 1998 1997 1996 1995 1994
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 .012 .029 .029 .029 .031 .020
------- ------- ------- ------- ------- -------
Total income from investment operations .012 .029 .029 .029 .031 .020
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment income (.012) (.029) (.029) (.029) (.031) (.020)
------- ------- ------- ------- ------- -------
Total distributions (.012) (.029) (.029) (.029) (.031) (.020)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
Total Return 1.21% (2) 2.97% 2.94% 2.91% 3.14% 1.98%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $235 $198 $160 $144 $150 $170
Ratio of expenses to average net assets -
before fee waiver .35% (2) .71% .74% .77% .75% .73%
Ratio of expenses to average net assets -
after fee waiver .32% (2) .65% .65% .65% .65% .65%
Ratio of net income to average net assets 1.21% (2) 2.94% 2.94% 2.88% 3.09% 1.99%
(1) Unaudited
(2) Based on operations for the period
shown and, accordingly, not representative
of a full year.
</TABLE>
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
BOARD OF TRUSTEES
AMBASSADOR RICHARD G. CAPEN, JR.
Rancho Santa Fe, California
The Tax-Exempt Money Fund of America
Corporate director and author;
former United States Ambassador to Spain;
former Vice Chairman of the Board, Knight-Ridder, Inc;
former Chairman of the Board and
Publisher, The Miami Herald
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
Managing Director, Senior Resource Group, LLC
(development and management of senior living communities)
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)
FRANK M. SANCHEZ, Los Angeles, California
The Tax-Exempt Money Fund of America
Chairman of the Board and Chief Executive Officer,
The Sanchez Family Corporation
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
KAREN F. HALL, Los Angeles, California
Assistant Vice President
The Cash Management Trust of America and
The U.S. Treasury Money Fund of America
Vice President - Investment 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
[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
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.
PREPARING FOR THE YEAR 2000
The funds' key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all significant computer systems to process date-related
information properly following the turn of the century. Testing of these and
other systems with business partners, vendors and other service providers will
continue through much of 1999. 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.
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, 1999, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Printed on recycled paper
Litho in USA CD/AL/3972
Lit. No. MMF-013-0599
