[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, 2000
[cover illustration: three different colored eggs in a bird's nest]
The Cash Management Trust of America
The Cash Management Trust of America(r) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in high-quality, short-term money market instruments.
The U.S. Treasury Money Fund of America
The U.S. Treasury Money Fund of America(sm) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
The Tax-Exempt Money Fund of America
The Tax-Exempt Money Fund of America(sm) seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality municipal securities with effective maturities of
one year or less.
These are three of the 29 funds in The American Funds Group,(r) the nation's
third-largest mutual fund family. For nearly seven 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 future results.
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 they 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. Certain other income, as
well as capital gain distributions, may be taxable.
Fellow Shareholders:
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The six-month period ended March 31, 2000, was marked by a combination of
strong economic growth, rising interest rates and surprisingly moderate
inflation. This environment helped your funds provide solid returns that
outpaced the rate of increase in the Consumer Price Index by a wide margin -
taking into account the taxable equivalent return in the case of The Tax-Exempt
Money Fund of America.
The Cash Management Trust of America generated an income return of 2.62% (5.24%
annualized) with dividends reinvested.
The U.S. Treasury Money Fund of America provided an income return of 2.28%
(4.56% annualized) with dividends reinvested. This income is exempt from state
and local income taxes in most states.
The Tax-Exempt Money Fund of America gave investors a federally tax-free income
return of 1.46% (2.92% annualized) including reinvested dividends. This is
equal to a 4.83% return at an annualized rate for investors in the 39.6%
federal tax bracket.
SEVEN-DAY ANNUALIZED RATES/1/ AND THE CONSUMER PRICE INDEX
For the months ended March 31, 1996 - March 31, 2000
[begin mountain chart]
<TABLE>
<CAPTION>
Cash Management U.S. Treasury Tax-Exempt Tax-Exempt Consumer
Trust Money Fund Money Fund Money Fund Price
(Taxable Equiv- Index
alent yield)
<S> <C> <C> <C> <C> <C>
Mar - 96 4.77 4.41 2.67 4.42 2.84
Apr 4.89 4.53 2.89 4.78 2.90
May 4.79 4.39 2.93 4.85 2.89
Jun 4.77 4.47 2.80 4.64 2.75
Jul 4.80 4.53 2.80 4.64 2.95
Aug 4.76 4.53 2.82 4.67 2.88
Sep - 96 4.82 4.57 2.93 4.85 3.00
Oct 4.75 4.50 2.81 4.65 2.99
Nov 4.72 4.44 2.88 4.77 3.26
Dec 4.87 4.38 3.03 5.02 3.32
Jan 4.77 4.39 2.80 4.64 3.04
Feb 4.63 4.40 2.75 4.55 3.03
Mar 4.85 4.69 2.74 4.54 2.76
Apr 5.06 4.86 3.11 5.15 2.50
May 5.11 4.87 3.09 5.12 2.23
Jun 5.13 4.76 3.13 5.18 2.30
Jul 5.05 4.78 3.04 5.03 2.23
Aug 5.04 4.67 2.93 4.85 2.23
Sep - 97 5.07 4.45 3.11 5.15 2.15
Oct 5.03 4.62 3.08 5.10 2.08
Nov 4.91 4.66 3.11 5.15 1.83
Dec 5.36 4.70 3.20 5.30 1.70
Jan 5.03 4.39 2.94 4.87 1.57
Feb 4.95 4.43 2.76 4.57 1.44
Mar 5.03 4.57 2.92 4.83 1.37
Apr 4.84 4.35 3.06 5.07 1.44
May 5.05 4.48 2.85 4.72 1.69
Jun 5.09 4.38 2.93 4.85 1.68
Jul 4.97 4.43 2.90 4.80 1.68
Aug 4.94 4.38 2.80 4.64 1.62
Sep - 98 4.99 4.35 2.88 4.77 1.49
Oct 4.74 3.81 2.55 4.22 1.49
Nov 4.49 3.72 2.48 4.11 1.55
Dec 4.73 3.89 2.62 4.34 1.61
Jan 4.47 3.80 2.22 3.68 1.67
Feb 4.34 3.83 2.22 3.68 1.61
Mar 4.23 3.83 2.29 3.79 1.73
Apr 4.26 3.75 2.53 4.19 2.28
May 4.34 3.82 2.55 4.22 2.09
Jun 4.35 3.79 2.60 4.30 1.96
Jul 4.57 4.00 2.52 4.17 2.14
Aug 4.75 4.24 2.64 4.37 2.26
Sep - 99 4.61 4.32 2.94 4.80 2.63
Oct 4.95 4.11 2.86 4.74 2.56
Nov 5.00 4.49 3.02 5.00 2.62
Dec 5.32 4.47 3.42 5.66 2.68
Jan - 2000 5.37 4.58 2.71 4.49 2.68
Feb 5.20 4.48 2.71 4.49 3.16
Mar 5.46 5.08 2.92 4.83 3.70
</TABLE>
[end chart]
Your funds' seven-day yields as of March 31, 2000, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Cash Management Trust +5.46%
U.S. Treasury Money Fund +5.08%
Tax-Exempt Money Fund +2.92%
</TABLE>
(1)Equivalent to Securities and Exchange Commission yield.
(2)Because income paid by The U.S. Treasury Money Fund of America is exempt
from state and local taxes in most states, the fund's taxable equivalent yield
would be higher than the rates indicated in the chart.
(3)Represents the fund's taxable equivalent yield calculated at the maximum
39.6% federal tax rate.
[image of leaves]
Surging economic growth and mild inflation
The expansion of the U.S. economy over the course of the six-month reporting
period continued at an extraordinary rate. Annualized growth for the fourth
quarter of 1999 hit 7.3%, the fastest pace in more than 15 years. At the end of
March, the U.S. economy had registered a record 108th consecutive month of
growth and experienced an annualized growth rate in the March quarter of 5.4%.
Such unwavering economic activity over such a prolonged period usually leads to
a significant increase in inflation rates. Remarkably, however, this has not
yet been the case: Inflation, as measured by the Consumer Price Index, rose
just under 2.00% during the six months. Helping to keep prices in check were
rising productivity rates in the U.S., which have allowed businesses to absorb
cost increases without price hikes. Intense competition from economies around
the world also has restrained price increases.
Short-term yields on the rise
In February, Federal Reserve Board Chairman Alan Greenspan suggested that not
even continued productivity gains could deflect the need for further interest
rate increases. Indeed, during the period wage pressures intensified and the
cost of oil and other raw materials rose sharply. In a pre-emptive move to help
let some steam out of a possibly overheated economy, the central bank began
pushing up the federal funds rate (the rate banks charge each other for
overnight loans) by 0.25% in June and August and again in November. Two
additional rate hikes in February and March then brought the rate to 6.00%.
The rise in short-term interest rates over the past six-month period helped
boost the yield of each of the three money market funds.
A haven for your investment
In recent months, financial markets have become increasingly volatile. An
extreme example of this occurred on April 4, shortly after the reporting
period, when the stock market, as measured by the Dow Jones Industrial Average
and NASDAQ, moved 4.17% and 13.70%, respectively, in both directions in a
single day. Understandably, wild swings such as that are hard on the nervous
system.
Added to a portfolio that includes stock and bond funds, your money market fund
can provide a reasonable return while serving as a quiet harbor for cash you
may need soon or wish to have available for future investments. The funds offer
check writing privileges and access to your account 24 hours a day through
American FundsLine (800/325-3590) and the American Funds Web site
(www.americanfunds.com).
Thank you for selecting an American Funds money market fund for your investment
portfolio. Our approach to managing these funds is to pay close attention to
maintaining liquidity and minimizing risk - objectives we believe you share
with us. We 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 Board President
May 15, 2000
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<TABLE>
The Cash Management Trust of America
Investment Portfolio, March 31, 2000 Unaudited
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Acquisition (000) -
------------------------------ -------- -------- --------
Certificates of Deposit - 0.72%
Canadian Imperial Bank of Commerce
May 30, 2000 0.06 40,000 40,000
--------
Total Certificates of Deposit 40,000
--------
Commercial Paper - 70.98%
Abbott Laboratories
April 26, 2000 6.03 30,000 29,870
A.I Credit Corp
April 28, 2000 5.89 25000 24,886
May 02, 2000 5.90 25,000 24,870
Alcoa Inc.
April 06, 2000 5.84 20,000 19,981
May 05, 2000 5.95 25,000 24,857
American Express Credit Corp.
April 04, 2000 5.86 50,000 49,968
American General Finance Corp.
April 10, 2000 5.86 20,000 19,968
April 11, 2000 5.94 40,000 39,928
American Honda Finance Corp.
May 22, 2000 6.10 60,000 59,476
ANZ (Delaware) Inc.
April 07, 2000 5.86 25,000 24,972
ARCO British Ltd.
April 17, 2000 (1) 5.92 30,000 29,917
April 18, 2000 (1) 6.06 30,000 29,910
Asset Securitization Cooperative Corp.
April 05, 2000 (1) 5.90 30,000 29,976
April 17, 2000 (1) 5.93 47,000 46,870
Associates Corp. of North America
May 11, 2000 6.09 30,000 29,794
May 12, 2000 6.08 50,000 49,648
AT&T Corp.
April 03, 2000 5.86 27,300 27,287
April 06, 2000 5.94 30,000 29,971
Barclays U.S. Funding Corp.
April 14, 2000 5.84 50,000 49,887
Bell Atlantic Financial Services, Inc.
April 25, 2000 5.90 25,000 24,898
May 25, 2000 6.11 25,000 24,769
BellSouth Telecommunications, Inc.
May 10, 2000 (1) 6.06 70,000 69,539
BMW US Capital Corp.
April 28, 2000 6.18 40,000 39,814
May 22, 2000 6.09 20,000 19,826
Campbell Soup Co.
April 24, 2000 5.88 60,000 59,767
CDC Commericial Paper Corp.
April 14, 2000 (1) 5.93 50,000 49,885
April 20, 2000 (1) 5.99 50,000 49,834
Chevron U.K. Investment PLC
May 12, 2000 6.05 25,000 24,825
Ciesco LP
April 13, 2000 5.89 45,000 44,905
CIT Group, Inc.
May 08, 2000 6.11 60,000 59,622
Coca-Cola Co.
April 10, 2000 5.95 37,000 36,940
April 26, 2000 5.97 30,000 29,871
May 24, 2000 6.09 50,000 49,548
Corporate Asset Funding Co. Inc.
April 03, 2000 (1) 5.89 25,000 24,988
April 06, 2000 (1) 5.86 25,000 24,976
Den Danske Corp Inc.
April 05, 2000 5.85 50,000 49,960
Dresdner U.S. Finance Inc.
April 18, 2000 6.02 50,000 49,850
Duke Energy Corp.
April 04, 2000 5.85 25,000 24,984
April 13, 2000 5.83 26,000 25,946
April 14, 2000 5.86 19,300 19,256
E.I. du Pont de Nemours and Co.
April 06, 2000 5.86 10,700 10,690
April 12, 2000 5.86 50,000 49,903
May 11, 2000 6.05 35,000 34,761
Eksportfinans ASA
May 26, 2000 6.07 50,000 49,533
Electricite de France
April 05, 2000 5.85 25,000 24,980
Emerson Electric Co.
April 03, 2000 (1) 5.86 40,000 39,981
Export Development Corp.
April 05, 2000 5.85 25,000 24,980
Ford Motor Credit Co.
April 20, 2000 5.89 35,000 34,887
April 28, 2000 6.06 38,000 37,824
Fortune Brands Inc.
April 17, 2000 5.88 20,000 19,945
April 26, 2000 5.90 20,000 19,915
France Telecom SA
April 17, 2000 (1) 6.03 50,000 49,860
May 03, 2000 (1) 6.05 25,000 24,862
General Electric Capital Corp.
April 07, 2000 5.86 50,000 49,944
April 12, 2000 5.90 50,000 49,902
May 08, 2000 6.10 25,000 24,840
General Motors Acceptance Corp.
April 10, 2000 5.89 35,000 34,943
April 18, 2000 5.90 15,000 14,956
April 26, 2000 6.00 25,000 24,892
Gillette Co.
May 03, 2000 (1) 6.06 65,000 64,641
Glaxo Wellcome PLC
April 07, 2000 (1) 5.86 19,100 19,078
Halifax Group PLC
May 09, 2000 5.97 50,000 49,680
H.J. Heinz Co.
April 17, 2000 5.88 43,800 43,679
April 24, 2000 5.92 40,000 39,843
Household Finance Corp.
May 04, 2000 6.04 100,000 99,426
IBM Credit Corp.
May 11, 2000 6.01 50,000 49,661
International Lease Finance Corp.
April 14, 2000 5.92 45,000 44,898
KfW International Finance Inc.
May 05, 2000 5.91 50,000 49,716
Lucent Technologies Inc.
May 08, 2000 5.94 50,000 49,690
Marsh USA Inc.
April 11, 2000 5.88 25,000 24,955
Merck & Co. Inc.
April 27, 2000 6.01 50,000 49,776
April 28, 2000 6.01 50,000 49,768
Monsanto Co.
April 13, 2000 5.91 20,000 19,958
May 02, 2000 5.93 20,000 19,896
Motiva Enterprises LLC
May 17, 2000 6.22 25,000 24,803
May 18, 2000 6.08 40,000 39,679
Motorola Credit Corp.
April 27, 2000 5.89 25,000 24,891
May 05, 2000 6.07 50,000 49,707
National Australia Funding (Delaware) Inc.
April 17, 2000 5.99 50,000 49,859
National Rural Utilities
Cooperative Finance Corp.
April 10, 2000 5.87 25,000 24,959
April 13, 2000 5.87 40,000 39,916
Park Avenue Receivables Corp.
April 07, 2000 (1) 5.90 60,000 59,932
April 13, 2000 (1) 5.93 30,000 29,936
Pfizer Inc
April 11, 2000 (1) 5.85 64,000 63,886
Preferred Receivables Funding Corp.
April 10, 2000 (1) 5.90 45,000 44,927
April 18, 2000 (1) 5.91 8,800 8,774
Procter & Gamble Co.
April 26, 2000 6.02 40,000 39,827
May 01, 2000 6.00 30,000 29,846
Rio Tinto America Inc.
April 13, 2000 (1) 5.87 25,000 24,947
SBC Communications Inc.
April 24, 2000 (1) 5.91 35,000 34,863
April 25, 2000 (1) 6.03 35,000 34,854
May 25, 2000 (1) 6.22 25,000 24,769
Societe Generale N.A. Inc.
May 01, 2000 6.10 81,500 81,084
Svenska Handelsbanken Inc.
April 14, 2000 5.98 50,000 49,884
Texaco Inc.
April 07, 2000 5.84 30,000 29,966
TotalFina S.A.
April 14, 2000 (1) 6.07 60,000 59,862
Toyota Motor Credit Corp.
May 01, 2000 (1) 6.05 50,000 49,745
UBS Finance (Delaware) Inc.
April 06, 2000 5.88 40,500 40,461
USAA Capital Corp.
May 16, 2000 6.05 25,000 24,809
May 17, 2000 6.09 30,000 29,764
Wal-Mart Stores, Inc.
April 11, 2000 (1) 5.91 50,000 49,910
April 19, 2000 (1) 5.88 50,000 49,846
Warner-Lambert Co.
May 16, 2000 (1) 6.06 75,000 74,425
--------
Total Commercial Paper 3,932,433
--------
Federal Agency Discount Notes - 27.95%
Fannie Mae
April 03, 2000 5.77 37,000 36,982
April 06, 2000 5.77 11,000 10,990
April 20, 2000 5.77 40,000 39,873
April 27, 2000 5.80 40,000 39,827
May 04, 2000 5.88 33,500 33,316
Federal Home Loan Banks
April 12, 2000 5.86 65,000 64,875
April 19, 2000 5.95 150,000 149,543
May 03, 2000 5.86 75,000 74,613
May 05, 2000 5.88 25,000 24,858
May 19, 2000 5.98 20,000 19,839
May 26, 2000 6.06 15,000 14,860
Freddie Mac
April 04, 2000 5.76 100,000 99,936
April 10, 2000 5.80 70,000 69,888
April 11, 2000 5.93 70,000 69,876
April 18, 2000 5.97 150,000 149,563
April 25, 2000 6.03 150,000 149,395
May 02, 2000 5.88 150,000 149,232
May 09, 2000 5.93 50,000 49,681
May 16, 2000 5.96 30,000 29,773
May 23, 2000 6.03 95,000 94,164
Sallie Mae
April 20, 2000 (2) 6.55 50,000 50,015
May 18, 2000 (2) 6.49 25,637 25,646
July 20, 2000 (2) 6.26 25,000 25,005
Tennessee Valley Authority
April 03, 2000 5.74 50,000 49,976
April 04, 2000 5.74 27,000 26,983
--------
Total Federal Agency Discount Notes 1,548,709
--------
U.S. Treasury Securities - 0.90%
U. S. Treasury Bills
April 20, 2000 6.01 50,000 49,834
--------
Total U.S Treasury Securities 49,834
--------
Total Investment Securities
(cost: $5,570,940,000) 5,570,976
Excess of payables over cash and receivables (30,482)
--------
NET ASSETS 5,540,494
========
(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; desription of
issue and yield at acquisition reflect
current coupon rate.
See Notes to Financial Statements
</TABLE>
<TABLE>
THE CASH MANAGEMENT TRUST OF AMERICA
FINANCIAL STATEMENTS
<S> <C> <C>
----------------------------- -------- --------
STATEMENT OF ASSETS AND LIABILITIES Unaudited
at March 31,2000 (dollars in thousands)
----------------------------- -------- --------
Assets:
Investment securities at market
(Cost: $5,570,940) $5,570,976
Cash 2,394
Receivables for--
Sales of fund's shares $56,444
Accrued interest 2,258
Other 77 58,779
-------- --------
5,632,149
Liabilities:
Payables for--
Repurchases of fund's shares 88,596
Dividends payable 1,697
Management services 1,362 91,655
-------- --------
Net Assets at March 31, 2000
(unlimited shares authorized) $5,540,494
========
Class A shares, Equivalent to $1.00 per share
Net assets $5,540,489
Shares outstanding 5,540,416,028
Class B shares, Equivalent to $1.00 per share
Net assets $5
Shares outstanding 5,322
STATEMENT OF OPERATIONS Unaudited
for the six months ended March 31,2000 (dollars in thousands)
----------------------------- -------- --------
Investment Income:
Income:
Interest $168,588
Expenses:
Management services fee $8,259
Distribution expenses- Class A 2,234
Distribution expenses- Class B 1
Transfer agent fee- Class A 4,633
Transfer agent fee- Class B -
Reports to shareholders 144
Registration statement and prospectus 621
Postage, stationery and supplies 1,364
Trustees' fees 28
Auditing and legal fees 37
Custodian fee 166
Taxes other than federal income tax 61 17,548
-------- --------
Net investment income 151,040
--------
Increase in Unrealized Appreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of period 32
End of period 36
Net increase in unrealized appreciation --------
on investments 4
--------
Net Increase in Net Assets
Resulting from operations $151,044
========
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
----------------------------- -------- --------
Six months
Ended Year Ended
3/31/2000 * 9/30/1999
-------- --------
Operations:
Net investment income $151,040 $231,655
Net increase in unrealized appreciation
on investments 4 16
-------- --------
Net increase in net assets
resulting from operations 151,044 231,671
-------- --------
Dividends Paid to Shareholders:
Class A (151,004) (231,656)
Class B (0) 0
-------- --------
Total dividends paid to shareholders (151,004) (231,656)
-------- --------
Capital Share Transactions:
Proceeds from shares sold 8,374,142 14,382,799
Proceeds from shares issued in reinvestment 138,528 215,273
of net investment income dividends
Cost of shares repurchased (8,835,266) (13,338,942)
-------- --------
Net (decrease) increase in net assets resulting
from capital share transactions (322,596) 1,259,130
-------- --------
Total (Decrease) Increase in Net Assets (322,556) 1,259,145
Net Assets:
Beginning of period 5,863,050 4,603,905
-------- --------
End of period $5,540,494 $5,863,050
======== ========
*Unaudited
See Notes to Financial Statements
</TABLE>
The Cash Management Trust of America
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. THE FUND OFFERS CLASS A AND
CLASS B SHARES. A CONTINGENT DEFERRED SALES CHARGE APPLIES TO CLASS B SHARES,
WHICH DECLINES FROM 5% TO ZERO DEPENDING ON THE LENGTH OF TIME THE SHARES ARE
HELD, AND INCLUDE A HIGHER DISTRIBUTION FEE THAN CLASS A SHARES. CLASS B
SHARES ARE AUTOMATICALLY CONVERTED TO CLASS A SHARES AFTER EIGHT YEARS FROM THE
DATE OF PURCHASE. HOLDERS OF BOTH CLASSES OF SHARES HAVE EQUAL PRO-RATA RIGHTS
TO ASSETS AND IDENTICAL VOTING, DIVIDEND, LIQUIDATION AND OTHER RIGHTS, EXCEPT
THAT EACH CLASS BEARS DIFFERENT DISTRIBUTION AND TRANSFER AGENT EXPENSES, AND
EACH CLASS SHALL HAVE EXCLUSIVE RIGHTS TO VOTE ON MATTERS AFFECTING ONLY THEIR
CLASS.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. 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. The ability of the
issuers of the debt securities held by the fund to meet their obligations may
be affected by economic developments in a specific industry, state or region.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value.
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 - Security transactions are
accounted for as of the trade date. Interest income is recognized on an accrual
basis. Market discounts, premiums, and original issue discounts on securities
purchased are amortized daily over the expected life of the security
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.
COMMON EXPENSES - INCOME, EXPENSES (OTHER THAN CLASS SPECIFIC EXPENSES) AND
REALIZED AND UNREALIZED GAINS AND LOSSES ARE PRORATED BETWEEN THE CLASSES BASED
ON THE RELATIVE NET ASSETS OF EACH CLASS. DISTRIBUTION AND TRANSFER AGENT
FEES, AND OTHER CLASS SPECIFIC EXPENSES, IF ANY, ARE CALCULATED DAILY AT THE
CLASS LEVEL BASED ON THE RELATIVE DAILY NET ASSETS OF EACH CLASS AND THE
SPECIFIC EXPENSE RATE APPLICABLE TO EACH CLASS.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income for the fiscal year. As a regulated investment company, the
fund is not subject to income taxes if such distributions are made. Required
distributions are determined on a tax basis and may differ from net investment
income for financial reporting purposes. In addition, the fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund.
As of March 31, 2000, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $36,000, of which $51,000 related to
appreciated securities and $15,000 related to depreciated securities. The cost
of portfolio securities for book and federal income tax purposes was $5,571,000
at March 31, 20.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $8,259,000 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 FOR CLASS A SHARES,
with American Funds Distributors, Inc. (AFD), the fund may expend up to 0.15%
of CLASS A 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. PURSUANT TO
A PLAN OF DISTRIBUTION FOR CLASS B SHARES, THE FUND MAY EXPEND UP TO 0.90% OF
CLASS B AVERAGE DAILY NET ASSETS ANNUALLY TO COMPENSATE DEALERS FOR THEIR
SELLING AND SERVICING EFFORTS. DURING THE SIX MONTHS ENDED MARCH 31, 2000,
DISTRIBUTION EXPENSES UNDER THE PLANS OF DISTRIBUTION FOR CLASS A AND CLASS B
WERE $2,234,000 AND $1,000. AS OF MARCH 31, 2000, ACCRUED AND UNPAID
DISTRIBUTION EXPENSES WERE $324,000 AND $0.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $4,633,000.
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, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993) net of any payments to
Trustees, were $28,000.
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, including
maturities, of $24,149,947,000 and $24,494,544,000, respectively, during the
six months ended March 31, 2000.
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C> <C> <C>
Six Months Year Ended
Ended 3/31/2000 9/30/1999
Amount (000) Shares Amount (000) Shares
Class A Shares:
Sold $8,374,137 8,374,136,662 $14,382,799 14,382,799,048
Reinvestment of dividends
and distributions 138,528 138,527,871 215,273 215,272,362
Repurchased (8,835,266) (8,835,265,755) (13,338,942) (13,338,941,818)
Net (decrease)
increase in Class A (322,601) (322,601,222) 1,259,130 1,259,129,592
Class B Shares: - -
Sold 5 5,318 - -
Reinvestment of dividends
and distributions - 4 - -
Repurchased - - - -
Net (decrease)
increase in Class B 5 5,322 - -
Total net (decrease)
increase in fund (322,596) (322,595,900) 1,259,130 1,259,129,592
</TABLE>
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 $166,000 includes none that was paid by these credits
rather than in cash.
<TABLE>
THE CASH MANAGEMENT TRUST OF AMERICA
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C> <C>
Net
asset Total
value, Net from
Period beginning investment investment
ended (1) of period income operations
Class A :
2000 $1.00 0.026 (4) 0.026
1999 1.00 0.045 0.045
1998 1.00 0.050 0.050
1997 1.00 0.049 0.049
1996 1.00 0.050 0.050
1995 1.00 0.052 0.052
Class B (2):
2000 1.00 0.002 (4) 0.002
Net
Dividends asset
(from net value,
investment Total end of Total
income) distributions period return
Class A :
(0.026) (0.026) $1.00 2.62% (2)
(0.045) (0.045) 1.00 4.59
(0.050) (0.050) 1.00 5.15
(0.049) (0.049) 1.00 5.03
(0.050) (0.050) 1.00 5.06
(0.052) (0.052) 1.00 5.34
Class B (2):
(0.002) (0.002) 1.00 0.17 (2)
Net Ratio of Ratio of
assets, expenses net
end of to income to
period average average
(in net net
millions) assets assets
Class A :
$5,540 .30% (2) 2.61% (2)
5,863 .58 4.52
4,604 .58 5.02
3,527 .57 4.93
3,304 .60 4.95
2,996 .60 5.21
Class B (2):
0 .06 (2) 0.26 (2)
(1) The periods ended 1995
through 1999 represent fiscal years
ended September 30; the period ended
2000 represents the six months
ended March 31 (unaudited).
(2) Based on operations for the
period shown and, accordingly, not
representative of a full year.
(3) Class B shares offered for
sale commencing March 15, 2000.
(4) Based on average shares
outstanding
</TABLE>
<TABLE>
The U.S. Treasury Money Fund of America
Investment Portfolio Unaudited
March 31, 2000
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Acquisition (000) (000)
---------- ---------- ----------
U.S. Treasury Securities - 100.29%
U.S. Treasury bills 4/13/00 5.41% $ 3,246 $ 3,240
U.S. Treasury bills 4/20/00 5.43% - 5.52% 103,441 103,145
U.S. Treasury bills 4/27/00 5.57% - 5.95% 73,901 73,600
U.S. Treasury bills 5/4/00 5.61% - 5.81% 81,003 80,579
U.S. Treasury bills 5/11/00 5.65% - 5.71% 51,624 51,307
U.S. Treasury bills 5/18/00 5.74% - 5.77% 39,902 39,619
U.S. Treasury bills 5/25/00 5.78% - 5.82% 36,553 36,252
U.S. Treasury bills 6/1/00 5.80% - 5.84% 27,464 27,208
U.S. Treasury bills 6/8/00 5.85% 5,818 5,757
----------
Total Investment Securities
(cost: $420,639,000) 420,707
Excess of payables over cash and receivables (1,228)
----------
Net Assets $419,479
==========
See Notes to Financial Statements
</TABLE>
<TABLE>
The U.S. Treasury Money Fund of America
Financial Statements Unaudited
<S> <C> <C>
------------------------------------- ---------- ----------
Statement of Assets and Liabilities
at March 31, 2000 (dollars in thousands)
------------------------------------- ---------- ----------
Assets:
Investment securities at market
(cost: $420,639) $420,707
Cash 114
Receivables for --
Sales of fund's shares 3,282
------------
424,103
Liabilities:
Payables for --
Repurchases of fund's shares $4,314
Dividends payable 102
Management services 111
Accrued expenses 97 4,624
---------- ----------
Net Assets at March 31, 2000 --
Equivalent to $1.00 per share on
419,411,034 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $419,479
==========
Statement of Operations Unaudited
for the six months ended March 31, 2000 (dollars in thousands)
---------- ----------
Investment Income:
Income:
Interest $ 12,180
Expenses:
Management services fee $710
Distribution expenses 222
Transfer agent fee 302
Reports to shareholders 9
Registration statement and prospectus 119
Postage, stationery and supplies 101
Trustees' fees 9
Auditing and legal fees 33
Custodian fee 13
Taxes other than federal income tax 9 1,527
------------
Reimbursement of expenses 0
---------- ----------
Net investment income 10,653
----------
Change in Unrealized Appreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of period 79
End of period 68
----------
Net change in unrealized
appreciation on investments (11)
----------
Net Increase in Net Assets Resulting
from Operations $10,642
==========
Statement of Changes in Net
(dollars in
Assets thousands)
--------------------------------- ---------- ----------
Six months
ended Year ended
3/31/2000 * 9/30/1999
Operations: ---------- ----------
Net investment income 10,653 16,664
Net realized gain on investments 0 0
Net change in unrealized
appreciation on investments (11) (140)
---------- ----------
Net increase in net assets
resulting from operations 10,642 16,524
---------- ----------
Dividends Paid to Shareholders (10,653) (16,664)
---------- ----------
Capital Share Transactions:
Proceeds from shares sold:
499,810,544 and 774,656,722
shares, respectively 499,811 774,656
Proceeds from shares issued in
reinvestment of net investment
income dividends:
9,956,549 and 15,676,872
shares, respectively 9,956 15,677
Cost of shares repurchased:
556,972,133 and 679,107,911
shares, respectively (556,972) (679,108)
---------- ----------
Net (decrease) increase in net assets resulting
from capital share transactions (47,205) 111,225
---------- ----------
Total (Decrease) Increase in Net Assets (47,216) 111,085
Net Assets:
Beginning of period 466,695 355,610
---------- ----------
End of period $419,479 $466,695
========== ==========
*Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
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 financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. 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. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. 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 <UNDEF> Security
transactions are accounted for as of the trade date. Interest income is
recognized on an accrual basis. Market discounts, premiums, and original issue
discounts on securities purchased are amortized daily over the expected life of
the security.
DIVIDENDS 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
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income for the fiscal year. As a regulated investment company, the
fund is not subject to income taxes if such distributions are made. Required
distributions are determined on a tax basis and may differ from net investment
income for financial reporting purposes. In addition, the fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund.
As of March 31, 2000, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $68,000, of which all related to
appreciated securities. The cost of portfolio securities for book and federal
income tax purposes was $420,639,000 at March 31, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $710,000 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, 2000, distribution expenses
under the Plan were $222,000. As of March 31, 2000, accrued and unpaid
distribution expenses were $34,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $302,000.
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, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $12,000.
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, including
maturities, of $1,084,433,000 and $1,142,534,000, respectively, during the six
months ended March 31, 2000.
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 $13,000 includes none that was paid by these credits
rather than in cash.
<TABLE>
The U. S. Treasury Fund of America
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C> <C>
Net
asset Total
value, Net from
Period beginning investment investment
ended (1) of period income operations
Class A : (2)
2000 $1.00 .023 (4) .023
1999 1.00 .039 .039
1998 1.00 .045 .045
1997 1.00 .046 .046
1996 1.00 .046 .046
1995 1.00 .048 .048
Net
Dividends asset
(from net value
investment Total end of Total
income) distributions period return
Class A : (2)
(.023) (.023) $1.00 2.28% (3)
(.039) (.039) 1.00 4.00
(.045) (.045) 1.00 4.63
(.046) (.046) 1.00 4.71
(.046) (.046) 1.00 4.66
(.048) (.048) 1.00 4.89
Net Ratio Ratio of
assets, of income to
end of expenses average
period (in to average net
millions) net assets assets
Class A : (2)
$419 .32% (3) 2.27% (3)
467 .59 3.95
356 .59 4.49
279 .53 4.61
256 .65 4.53
231 .67 4.79
(1) The periods ended 1995 through
1999 represent fiscal years ended
September 30; the period ended 2000
represents the six months ended
March 31 (unaudited).
(2) The fund offers Class A shares
only.
(3) Based on operations for the
period shown and, accordingly,
not representative of a full year.
(4) Based on average shares
outstanding.
</TABLE>
<TABLE>
The Tax-Exempt Money fund of America
Investment Portfolio Unaudited
March 31,2000
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Municipal Securities Acquisition (000) (000)
Alaska - 3.99%
City of Valdez,
Marine Terminal Revenue Refunding Bonds
(ARCO Transportation Alaska, Inc.
Project),TECP:
1994 Series A:
3.80% 04/14/00 3.80 2,000 2,000
3.85% 05/08/00 3.85 1,700 1,700
1994 Series C:
3.75% 04/05/00 3.75 1,100 1,100
3.70% 4/11/00 3.70 2,000 2,000
City of Valdez, Variable Rate Marine
Terminal Revenue Refunding Bonds:
(Exxon Pipeline Company Project),
1993 Series A, 3.95% 4/3/00* 3.95 3,300 3,300
(Mobil Alaska Pipeline Co. Project),
1993 Series A, 3.75% 4/5/00* 3.75 1,700 1,700
Arizona - 4.16%
Salt River Project Agricultural
Improvement and Power District,
Promissory Notes, TECP:
Series A:
3.85% 05/02/00 3.85 1,500 1,500
3.85% 05/05/00 3.85 2,500 2,500
Series B:
3.85% 05/02/00 3.85 2,000 2,000
3.90% 05/15/00 3.90 4,300 4,300
3.90% 05/19/00 3.90 1,000 1,000
County of Apache, Industustrial
Development Revenue Bonds,
(Tuscon Electric Power Co.
Springerville Project), 1983 Series B,
3.90% 4/5/00* 3.90 1,000 1,000
California - 0.80%
Revenue Anticipation Notes, 1999-2000,
4.00% 6/30/00 3.70 2,350 2,352
Connecticut - 1.96%
Health and Educational Facilities
Authority, Revenue Bonds,
Yale University Issue, Series T, 3.60% 4/6/00* 3.60 5,800 5,800
District of Columbia - 2.54%
District of Columbia, Variable Rate
Revenue Bonds, (National Academy of
Sciences Project),
Series 1999 B, TECP:
3.95% 5/24/00 3.95 5,000 5,000
3.95% 5/25/00 3.95 2,500 2,500
Florida - 2.14%
Florida Local Government Finance Commission
Pooled Commercial Paper Notes, Series 1991 A, TECP:
3.85% 5/2/00 3.85 1,500 1,500
4.00% 6/2/00 4.00 3,320 3,320
City of Gainsville, Utilities System,
Commercial Paper Notes,
Series C, TECP, 3.85% 5/3/00 3.85 1,500 1,500
Illinois - 1.42%
Illinois Health Facilities Authority,
Adjustable Rate Revenue Bonds, Series 1995
(Swedish Covenant Hospital Project),
AMBAC Insured, 3.85% 4/5/00* 3.85 1,200 1,200
Illinois Development Finance Authority,
Variable Rate Demand Revenue Bonds, Series 1999
(Metropolitan Family Services Project),
4.00% 4/5/00* 4.00 3,000 3,000
Indiana - 1.18%
City of Sullivan, Pollution Control Revenue
Bonds (Hoosier Energy Rural Electric
Cooperative, Inc. Project), TECP:
Series 1985L-4, 3.85% 5/3/00 3.85 1,500 1,500
Series 1985L-5, 3.85% 5/5/00 3.85 2,000 2,000
Iowa - 1.01%
School Cash Anticipation Program,
Iowa School Corporations,
Warrant Certificates, 1998-99 Series A,
FSA Insured, 4.00% 6/23/00 3.44 3,000 2,998
Kentucky - 2.38%
Asset/Liability Commission,
General Fund Tax and Revenue
Anticipation Notes, 1999 Series A
4.25% 6/28/00 3.54 2,400 2,400
4.50% 6/28/00 3.80 1,600 1,601
Pendleton County, Multi-County Lease Revenue Bonds
(Kentucky Association of Counties
Leasing Trust Program),
Series 1989, Money Market Municipal,
TECP, 3.55% 4/11/00 3.55 3,035 3,035
Louisiana - 1.07%
South Louisiana Port Commission,
Port Facility Revenue Bonds
(Holnam Inc. Project),
Series 1997, AMT, 3.90% 4/5/00* 3.90 1,100 1,100
Parish of East Baton Rouge,
Pollution Control Revenue Refunding Bonds,
(Exxon Project), Series 1993, 3.95% 4/3/00* 3.95 2,050 2,050
Maryland - 8.09%
Health and Higher Education
Facilities Authority,
Pooled Loan Program Revenue Notes
(The Johns Hopkins Hospital),
Series C, TECP:
3.90% 5/5/00 3.90 1,500 1,500
3.90% 5/8/00 3.90 2,000 2,000
3.85% 5/11/00 3.85 2,200 2,200
Anne Arundel County,
Economic Development Revenue Bonds
(Baltimore Gas and Electric Co. Project),
TECP: Series 1985:
3.85% 4/4/00 3.85 1,000 1,000
3.75% 4/12/00 3.75 3,000 3,000
Series 1988, AMT:
3.45% 4/4/00 3.45 1,000 1,000
3.90% 5/3/00 3.90 1,600 1,600
3.90% 5/10/00 3.90 3,500 3,500
4.05% 6/6/00 4.05 1,500 1,500
Baltimore County,
Economic Development Revenue Bonds
(Baltimore Gas and Electric Co. Project),
Series 1985, TECP, 3.60% 4/6/00 3.60 1,100 1,100
Montgomery County,
Consolidated Commercial Paper Bond
Anticipation Notes, Series 1995, TECP:
3.45% 4/4/00 3.45 1,500 1,500
3.65% 4/10/00 3.65 3,000 3,000
Washington Suburban Sanitary District
(Montgomery and Prince George's
Counties), Sewage Disposal Bonds,
Series 1993, 5.00% 6/1/00 2.01 1,000 1,002
Massachusetts - 1.93%
Water Resources Authority,
Series 1994, TECP, 3.90% 5/17/00 3.90 2,700 2,700
Development Finance Agency, First Mortgage
Revenue Variable Rate Bonds
(Lassell Village Project),
Series 1998C, 3.75% 4/5/00* 3.75 3,000 3,000
Minnesota - 1.39%
City of Rochester,
Health Care Facilities Revenue Bonds
(Mayo Foundation/Mayo Medical Center),
Adjustable Tender, TECP:
Series 1992A, 3.60% 4/5/00 3.60 2,100 2,100
Series 1992C, 3.80% 5/1/00 3.80 2,000 2,000
Mississippi - 1.76%
Harrison County, Pollution
Control Revenue Refunding Bonds,
(E. I. du Pont de Nemours and
Company Project), Series 1990, 4.00% 4/3/00* 4.00 4,100 4,100
Jackson County, Port Facility Refunding
Revenue Bonds, (Chevron U.S.A. Project),
Series 1993, 3.85% 5/1/00 3.85 1,100 1,100
Missouri - 2.37%
Higher Education Loan Authority,
Adjustable Rate Demand
Student Loan Revenue Bonds, AMT, 3.95% 4/5/00* 3.95 3,600 3,600
City of Columbia, Special Obligation
Insurance Reserve Bonds,
Series 1988A, 3.90% 4/5/00* 3.90 3,400 3,400
New Mexico - 1.69%
Tax and Revenue Anticipation Notes,
Series 1999A, 4.50% 6/30/00 3.89 5,000 5,004
New York - 1.81%
Long Island Power Authority,
Electric System Subordinated
Revenue Bonds, Series 6, 4.00% 4/3/00* 4.00 1,750 1,750
State Housing Finance Agency,
Revenue Bonds (Saxony Housing),
1997 Series A, AMT 3.80% 4/5/00* 3.80 3,600 3,600
North Carolina - 2.88%
North Carolina Medical Care Commission:
Hospital Revenue Bonds
(Duke University Hospital Project),
Series 1985D, 3.85% 4/6/00* 3.85 1,800 1,800
Variable Rate Demand Hospital Revenue Bonds,
(Lexington Memorial Hospital Project),
Series 1997, 4.05% 4/3/00* 4.05 1,400 1,400
Educational Facilities Finance Agency, Revenue Bonds
(Duke University Project), Series 1992A, 3.85% 4/6/00* 3.85 2,800 2,800
Board of Governors of the University of North Carolina
at Chapel Hill, Athletic Facilities Revenue Bonds,
Series 1998, 4.00% 4/6/00* 4.00 2,500 2,500
Ohio - 2.98%
City of Cleveland, Subordinated Income Tax
Variable Rate Refunding Bonds,
Series 1994, 3.90% 4/5/00* 3.90 4,500 4,500
County of Hamilton, Hospital Revenue Bonds
(Bethesda Hospital, Inc.),
Series 1995, 3.75% 4/6/00* 3.75 2,000 2,000
Ohio State University, Revenue Bonds,
Series 1999B, 3.75% 4/5/00* 3.75 2,300 2,300
Pennsylvania - 6.11%
Higher Education Assistance Agency,
Student Loan Adjustable
Rate Revenue Bonds,
1997 Series A, AMT, 4.00% 4/5/00* 4.00 2,000 2,000
Carbon County Industrial Development Authority,
Resource Recovery
Revenue Bonds (Panther Creek Partners
Project), TECP,AMT:
Series 1990B, 3.85% 4/13/00 3.85 1,250 1,250
Series 1991A, 3.85% 4/13/00 3.85 2,400 2,400
Delaware County Industrial Development Authority:
Pollution Control Revenue Refunding Bonds
(Philadelphia Electric Co.
Project), 1998 Series A, FGIC Insured, TECP:
3.45% 4/6/00 3.45 4,600 4,600
Solid Waste Revenue Bonds (Scott Paper Co. Project),
Series 1984D, 3.90% 4/6/00* 3.90 1,000 1,000
Venango Industrial Development Authority,
Resource Recovery
Revenue Bonds (Scrubgrass Project),
Series 1990A, TECP, AMT:
3.70% 4/7/00 3.70 1,500 1,500
3.70% 4/10/00 3.70 2,500 2,500
3.95% 5/9/00 3.95 2,800 2,800
South Carolina - 3.69%
Public Service Authority
(Santee Cooper Hydroelectric Project),
Series 1998, TECP:
3.85 5/1/00 3.85 5,000 5,000
3.90 5/4/00 3.90 2,000 2,000
3.85 5/16/00 3.85 3,900 3,900
Tennessee - 1.32%
Public Building Authority of the County
of Montgomery, Adjustable Rate
Pooled Financing Revenue Bonds,
Series 1997, 4.00% 4/6/00* 4.00 3,900 3,900
Texas - 22.79%
Tax and Revenue Anticipation Notes,
Series 1999A, 4.50% 8/31/00 3.91 9,200 9,214
Board of Regents of the Texas A&M University System,
Permanent University Fund Subordinate Lien Notes,
Series 1992B, AMT, TECP:
3.45% 4/5/00 3.45 3,300 3,300
3.75% 4/12/00 3.75 2,800 2,800
Brazos Higher Education Authority Inc.,
Student Loan Revenue
Bonds, Series 1993B-1, AMT, 3.90% 4/5/00* 3.90 1,000 1,000
Brazos River Authority,
Collateralized Pollution Control Revenue
Refunding Bonds (Texas Utilities Electric Co. Project):
Series D, MBIA Insured, AMT, 3.95% 4/5/00* 3.95 3,000 3,000
Series 1994, TECP, AMT:
3.65% 4/3/00 3.65 2,300 2,300
3.65% 4/4/00 3.65 2,000 2,000
3.50% 4/10/00 3.50 1,500 1,500
City of Brownsville Utility System, Series A, TECP:
3.45% 4/7/00 3.45 1,500 1,500
3.75% 4/7/00 3.75 2,000 2,000
3.50% 4/12/00 3.50 3,000 3,000
3.90% 5/11/00 3.90 2,500 2,500
4.00% 6/2/00 4.00 1,900 1,900
Harris County General Obligation Notes, TECP:
Series A, 3.65% 4/6/00 3.65 1,700 1,700
Series B, 3.85% 5/8/00 3.85 2,240 2,240
Series C, 3.90% 5/15/00 3.90 3,000 3,000
Series D, 3.90% 5/12/00 3.90 2,100 2,100
Harris County Industrial Development Corporation,
Adjustable Tender Pollution Control
Revenue Bonds (Exxon Project),
Series 1987 AMT, 4.05% 4/3/00* 4.05 3,100 3,100
City of Houston, General Obligation
Commercial Paper Notes, TECP:
Series A, 3.85% 4/4/00 3.85 3,000 3,000
Series B:
3.90% 5/11/00 3.90 1,000 1,000
4.00% 6/5/00 4.00 4,500 4,500
Series C, 3.90% 5/4/00 3.90 1,500 1,500
City of Midlothian Industrial
Development Corp., Variable
Rate Demand Pollution Control Revenue Bonds
(Box-Crow Cement Co. Project), 3.85% 4/5/00* 3.85 4,300 4,300
South Texas Higher Education Authority, Inc.,
Student Loan
Revenue Bonds, Series 1997, MBIA Insured,
AMT, 3.90% 4/5/00* 3.90 4,900 4,900
Utah - 2.03%
Intermountain Power Agency Variable Rate
Power Supply Revenue Bonds, 1985 Series F, TECP:
3.85% 5/4/00 3.85 1,600 1,600
3.90% 5/17/00 3.90 4,400 4,400
Virginia - 5.35%
Alexandria Redevelopment and Housing
Authority, Residential Care Facility,
First Mortgage Revenue Bonds (Goodwin House),
Multi-Mode Series 1996B, 4.05% 4/3/00* 4.05 1,510 1,510
Peninsula Ports Authority,
Coal Terminal Revenue Refunding Bonds
(Dominion Terminal Associates Project),
Series 1987-B, TECP,
3.85% 5/3/00 3.85 2,100 2,100
City of Hampton, Industrial Development
Authority, Hospital
Facilities Revenue Bonds
(Sentara Health System Obligated Group),
Series 1997B, TECP, 3.85% 5/12/00 3.85 2,000 2,000
City of Norfolk, Industrial Development
Authority, Hospital
Revenue Bonds (Sentara Hospitals - Norfolk Project)
Series 1990A, TECP:
3.85% 5/4/00 3.85 2,500 2,500
3.85% 5/8/00 3.85 2,000 2,000
3.85% 5/9/00 3.85 4,500 4,500
City of Waynesboro, Industial Development Authority,
Variable Rate Residential Care Facilities
Revenue Bonds, (Sunnyside Presbyterian Home),
Series 1997, 4.05% 4/3/00* 4.05 1,200 1,200
Washington - 3.87%
Port of Seattle:
Variable Rate General Obligation Bonds,
Series 1985, 3.85% 4/5/00* 3.85 2,500 2,500
Subordinate Lien Revenue Notes, Series A, TECP:
3.45% 4/3/00 3.45 2,610 2,610
3.80% 4/3/00 3.80 1,975 1,975
3.45% 4/5/00 3.45 2,100 2,100
Public Power Supply System, Project No. 1 Refunding
Electric Revenue Bonds, Series 1993-1A, 3.90% 4/5/00* 3.90 2,240 2,240
West Virginia - 0.91%
Public Energy Authority, Energy Revenue Bonds
(Morgantown Energy Associates Project),
1989 Series A, TECP, AMT, 3.95% 5/2/00 3.95 1,200 1,200
The County Commission of Marion County, Solid Waste
Disposal Facility Revenue Bonds, 1990 Series A
(Grant Town Cogeneration Project),
AMT, 3.95% 4/5/00* 3.95 1,500 1,500
Wisconsin - 5.59%
General Obligation Bonds, Series 1997A, TECP:
3.90% 5/10/00 3.90 4,500 4,500
3.90% 5/12/00 3.90 3,006 3,006
Health and Educational Facilities Authority, Variable Rate
Demand Revenue Bonds (Felican Services, Inc. Obligated
Group), Series 1997A, AMBAC Insured, 3.85% 4/5/00* 3.85 4,700 4,700
Transportation Revenue Commercial Paper Notes of 1997,
Series A, TECP, 3.45% 4/7/00 3.45 4,327 4,327
Wyoming - 1.18%
Tax and Revenue Anticipation Notes,
Series 1999, TECP, 4.00% 6/27/00 3.30 1,600 1,599
Uinta County, Pollution Control Revenue Refunding Bonds,
(Amoco Project), Series 1998, 3.95% 4/3/00* 3.95 1,900 1,900
---------
Total Tax-Exempt Securities (cost: $296,715,000) 296,683
Excess of payables over cash and receivables -1,164
---------
NET ASSETS 295,519
=========
* Coupon rate may change periodically; "yield
at acquisition" reflects current coupon rate.
</TABLE>
<TABLE>
The Tax-Exempt Money Fund of America
Financial Statements Unaudited
<S> <C> <C>
-------------------------------------- ------------ ------------
Statement of Assets and Liabilities (dollars in
at March 31, 2000 thousands)
------------------------------------- ------------ ------------
Assets:
Investment securities at market
(cost: $296,715) $296,683
Cash 335
Receivables for--
Sales of fund's shares $1,339
Accrued interest 1,512 2,851
------------ ------------
299,869
Liabilities:
Payables for--
Repurchases of fund's shares 4,070
Dividends payable 41
Management services 89
Accrued expenses 150 4,350
------------ ------------
Net Assets at March 31, 2000 --
Equivalent to $1.00 per share on
295,636,769 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $295,519
=============
Statement of Operations Unaudited
(dollars in
for the six months ended March 31, 2000 thousands)
------------ ------------
Investment Income:
Income:
Interest $4,913
Expenses:
Management services fee $526
Distribution expenses 66
Transfer agent fee 91
Reports to shareholders 12
Registration statement and prospectus 126
Postage, stationery and supplies 60
Trustees' fees 7
Auditing and legal fees 56
Custodian fee 31
Taxes other than federal income tax 9 984
------------ ------------
Net investment income 3,929
------------
Change in Unrealized Depreciation
on Investments:
Net unrealized depreciation
on investments:
Beginning of period (13)
End of period (32)
------------
Net change in unrealized
depreciation on investments (19)
------------
Net Increase in Net Assets Resulting
from Operations $3,910
============
Statement of Changes in Net
(dollars in
Assets thousands)
---------------------------------------- ------------- -------------
Six months Year
ended ended
3/31/00* 9/30/99
Operations: ------------- -------------
Net investment income $ 3,929 $ 5,659
Net change in unrealized
depreciation on investments (19) (59)
------------- -------------
Net increase in net assets
resulting from operations 3,910 5,600
------------- -------------
Dividends Paid to Shareholders (3,952) (5,698)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
302,103,536 and 475,331,901
shares, respectively 302,104 475,332
Proceeds from shares issued in
reinvestment of net investment
income dividends:
3,672,375 and 5,248,578 shares,
respectively 3,672 5,249
Cost of shares repurchased:
265,654,559 and 423,236,513
shares, respectively (265,655) (423,237)
------------ ------------
Net increase in net assets
resulting from capital share
transactions 40,121 57,344
------------ ------------
Total Increase in Net Assets 40,079 57,246
Net Assets:
Beginning of period 255,440 198,194
------------ ------------
End of period $295,519 $255,440
============ ============
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
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 financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. 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. The ability of the
issuers of the debt securities held by the fund to meet their obligations may
be affected by economic developments in a specific industry, state or region.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. 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 <UNDEF> Security
transactions are accounted for as of the trade date. Interest income is
recognized on an accrual basis. Market discounts, premiums, and original issue
discounts on securities purchased are amortized daily over the expected life of
the security.
DIVIDENDS 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
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income for the fiscal year. As a regulated investment company, the
fund is not subject to income taxes if such distributions are made. Required
distributions are determined on a tax basis and may differ from net investment
income for financial reporting purposes. In addition, the fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund.
As of March 31, 2000, net unrealized depreciation on investments for book and
federal income tax purposes aggregated $32,000, of which all related to
depreciated securities. The cost of portfolio securities for book and federal
income tax purposes was $296,715,000 at March 31, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $526,000 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 0.39% of the first $200 million of
average net assets; 0.37% of such assets in excess of $200 million but not
exceeding $600 million; 0.33% of such assets in excess of $600 million but not
exceeding $1.2 billion; and 0.29% of such assets in excess of $1.2 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, 2000, distribution expenses
under the Plan were $66,000. As of March 31, 2000, accrued and unpaid
distribution expenses were $11,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $91,000.
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, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $12,000.
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, including
maturities of $698,320,000 and $658,113,000, respectively, during the six
months ended March 31, 2000.
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 $31,000 includes none that was paid by these credits
rather than in cash.
<TABLE>
The Tax-Exempt Money fund of America
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C>
Net asset
value, Net Total from
Period beginning investment investment
ended (1) of period income operations
Class A : (2)
2000 $1.00 0.014 (5) .014
1999 1.00 .025 .025
1998 1.00 .029 .029
1997 1.00 .029 .029
1996 1.00 .029 .029
1995 1.00 .031 .031
Dividends
(from net Net asset
investment Total value end Total
income) distributions of period return
Class A : (2)
(.014) (.014) $1.00 1.46% (3)
(.025) (.025) 1.00 2.51
(.029) (.029) 1.00 2.97
(.029) (.029) 1.00 2.94
(.029) (.029) 1.00 2.91
(.031) (.031) 1.00 3.14
Ratio of Ratio of
expenses to expenses to
average net average net Ratio of
Net assets, assets - assets - net income
end of period before fee after fee to average
(in millions) waiver waiver net assets
Class A : (2)
$296 0.36% (3) 0 (4) 1.43% (3)
255 .68 .65% 2.33
198 .71 .65 2.94
160 .74 .65 2.94
144 .77 .65 2.88
150 .75 .65 3.09
(1) The periods ended 1995 through
1999 represent fiscal years ended
September 30; the period ended
2000 represents the six months
ended March 31 (unaudited).
(2) The fund offers Class A
shares only.
(3) Based on operations for the
period shown and, accordingly,
not representative of a full year.
(4) The Investment Advisory and
Service Agreement adopted on
October 1, 1999 does not provide
for a management fee waiver.
(5) Based on average shares
outstanding.
</TABLE>
[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 fund's services, or for a
prospectus for any of the American Funds, 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. Please read
the prospectus carefully before you invest or send money.
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, 2000, 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/GRS/4600
Lit. No. MMF-013-0500
