The American Funds Group(r)
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
Annual Report
for the year ended September 30, 2000
[watermark: fund names]
These are three of the 29 American Funds, 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.
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.
[begin mountain chart]
SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX
For the months ended September 30, 1995 - September 30, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Federal Tax-Exempt Cash Management U.S. Treasury Consumer Price
Funds Rate Money Fund (2) Trust Money Fund (3) Index (inflation)
Sep-95 5.75 5.28 5.26 4.86 2.54
Oct-95 5.75 5.15 5.27 4.85 2.81
Nov-95 5.75 5.17 5.30 4.75 2.61
Dec-95 5.50 5.56 5.14 4.68 2.54
Jan-96 5.25 4.55 5.08 4.62 2.73
Feb-96 5.25 4.44 4.78 4.43 2.65
Mar-96 5.25 4.42 4.77 4.41 2.84
Apr-96 5.25 4.78 4.89 4.53 2.90
May-96 5.25 4.85 4.79 4.39 2.89
Jun-96 5.25 4.64 4.77 4.47 2.75
Jul-96 5.25 4.64 4.80 4.53 2.95
Aug-96 5.25 4.67 4.76 4.53 2.88
Sep-96 5.25 4.85 4.82 4.57 3.00
Oct-96 5.25 4.65 4.75 4.50 2.99
Nov-96 5.25 4.77 4.72 4.44 3.26
Dec-96 5.25 5.02 4.87 4.38 3.32
Jan-97 5.25 4.64 4.77 4.39 3.04
Feb-97 5.25 4.55 4.63 4.40 3.03
Mar-97 5.50 4.54 4.85 4.69 2.76
Apr-97 5.50 5.15 5.06 4.86 2.50
May-97 5.50 5.12 5.11 4.87 2.23
Jun-97 5.50 5.18 5.13 4.76 2.30
Jul-97 5.50 5.03 5.05 4.78 2.23
Aug-97 5.50 4.85 5.04 4.67 2.23
Sep-97 5.50 5.15 5.07 4.45 2.15
Oct-97 5.50 5.10 5.03 4.62 2.08
Nov-97 5.50 5.15 4.91 4.66 1.83
Dec-97 5.50 5.30 5.36 4.70 1.70
Jan-98 5.50 4.87 5.03 4.39 1.57
Feb-98 5.50 4.57 4.95 4.43 1.44
Mar-98 5.50 4.83 5.03 4.57 1.37
Apr-98 5.50 5.07 4.84 4.35 1.44
May-98 5.50 4.72 5.05 4.48 1.69
Jun-98 5.50 4.85 5.09 4.38 1.68
Jul-98 5.50 4.80 4.97 4.43 1.68
Aug-98 5.50 4.64 4.94 4.38 1.62
Sep-98 5.25 4.77 4.99 4.35 1.49
Oct-98 5.00 4.22 4.74 3.81 1.49
Nov-98 4.75 4.11 4.49 3.72 1.55
Dec-98 4.75 4.34 4.73 3.89 1.61
Jan-99 4.75 3.68 4.47 3.80 1.67
Feb-99 4.75 3.68 4.34 3.83 1.61
Mar-99 4.75 3.79 4.23 3.83 1.73
Apr-99 4.75 4.19 4.26 3.75 2.28
May-99 4.75 4.22 4.34 3.82 2.09
Jun-99 5.00 4.30 4.35 3.79 1.96
Jul-99 5.00 4.17 4.57 4.00 2.14
Aug-99 5.25 4.37 4.75 4.24 2.26
Sep-99 5.25 4.80 4.61 4.32 2.63
Oct-99 5.25 4.74 4.95 4.11 2.56
Nov-99 5.50 5.00 5.00 4.49 2.62
Dec-99 5.50 5.66 5.32 4.47 2.68
Jan-00 5.50 4.49 5.37 4.58 2.74
Feb-00 5.75 4.49 5.20 4.48 3.22
Mar-00 6.00 4.83 5.46 5.08 3.76
Apr-00 6.00 5.76 5.48 5.07 3.07
May-00 6.50 5.86 5.65 5.05 3.19
Jun-00 6.50 6.26 6.06 5.20 3.73
Jul-00 6.50 5.81 5.99 5.21 3.66
Aug-00 6.50 5.98 6.04 5.60 3.41
Sep-00 6.50 6.34 6.06 5.64 3.45
</TABLE>
- The Cash Management Trust of America
- The U.S. Treasury Money Fund of America
- The Tax-Exempt Money Fund of America
- Federal Funds Rate
- Consumer Price Index (12-month change)
[end mountain chart]
Your funds' seven-day yields as of September 30, 2000, were as follows:
<TABLE>
<CAPTION>
<S> <C>
The Cash Management Trust of America +6.06%
The U.S. Treasury Money Fund of America +5.64%
The Tax-Exempt Money Fund of America +3.83%
The Tax-Exempt Money Fund of America (taxable +6.34%
equivalent yield)(2)
</TABLE>
(1) Equivalent to Securities and Exchange Commission yield.
(2) Represents the fund's taxable equivalent yield calculated at the maximum
39.6% federal tax rate.
(3) 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 shown in the chart.
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,
OR 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:
The 12 months ended September 30, 2000, saw a shift in market sentiment that
brought down the price of many equity securities, led by the previously
high-flying Internet sector. Rising interest rates and earnings disappointments
in a number of industries contributed to increased stock market volatility.
Through most of the period, however, the U.S. economy grew at a robust pace and
inflation fears were largely unrealized.
In August, the Federal Reserve issued a stern warning about inflationary
pressures, produced by, for example, a short supply of some materials,
tightening labor markets and a run-up in oil prices. At the same time, efforts
by the Federal Reserve to engineer a "soft landing" slowdown in economic growth
- an effort that included six increases in short-term interest rates between
June 1999 and May 2000 - appeared to be taking hold. These signs of change lead
some forecasters to believe that the Fed will not push rates up any further.
Some even predict that the economy will slow too quickly, so that the Fed's
next move will be to reduce rates.
While the inflation rate has remained a relatively moderate 3.45% over the past
12 months (as measured by the Consumer Price Index), it did increase from the
previous year's rate of 2.63%. Throughout this somewhat unpredictable period,
your money market funds have generated solid returns that outpaced the rate of
inflation by a wide margin*:
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 5.66% with
dividends reinvested over the fiscal year ended September 30.
THE U.S. TREASURY MONEY FUND OF AMERICA registered an income return of 5.00%
including reinvested dividends. Because all of the fund's earnings are derived
from investments in U.S. Treasury securities, the income paid by the fund is
exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA produced a federally tax-free income
return of 3.29% with dividends reinvested. This return is equivalent to a
return of 5.45% for investors in the 39.6% federal tax bracket. A portion of
this income may also be exempt from state and local taxes.
THE MARKET'S WILD RIDE
Investors who enthusiastically bid up the price of a long list of Internet and
other technology stocks during calendar 1999 and early 2000 have received a
tough lesson in recent months. The Nasdaq market, where most of those
securities are listed, had gained 256% in 17 months before it went over the
precipice last March and dropped 37% by May 23. It recovered somewhat but then
began another steep decent in September, a trend that has continued in the
weeks since the end of the funds' fiscal year. Other equity markets have
declined, as well, but less severely.
Recent market activity dramatically underscores the important role that your
money market fund can play in your overall investment portfolio. Whether used
to provide a temporary place for your assets between longer term investments,
as part of a regular investment program, or simply as a way to earn income on
the cash-reserve portion of a balanced portfolio, your money market fund can be
instrumental in helping you achieve your long-term financial goals.
We appreciate your choice of an American Funds money market fund for your
investment portfolio. To learn more about your fund family and its investment
adviser, Capital Research and Management Company, please turn to page 2. We
look forward to reporting to you again in six months.
Cordially,
/s/ Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Chairman of the Boards
/s/ Abner D. Goldstine
Abner D. Goldstine
President
November 15, 2000
*The Tax-Exempt Money Fund of America's taxable equivalent yield in fiscal 2000
exceeded inflation for all tax brackets.
The Cash Management Trust of America now offers both Class A and Class B
shares. (The U.S. Treasury Money Fund and The Tax-Exempt Money Fund offer Class
A shares only.) See back cover for more information.
WHAT MAKES THE AMERICAN FUNDS DIFFERENT?
As a shareholder in any of our three money market funds, you are also a member
of the American Funds, the nation's third-largest mutual fund family. You won't
find us advertised, yet thousands of financial advisers recommend the American
Funds for their clients' serious money - money set aside for education, a home,
retirement and other important dreams.
What the 29 funds in our group have in common is a commitment to your best
interests and the proven approach of our investment adviser, Capital Research
and Management Company. In business since 1931, Capital's calling cards
include:
A LONG TERM, VALUE-ORIENTED APPROACH:
Rather than follow short-term fads, we rely on our own intensive research to
find well-managed companies with reasonably priced securities and solid,
long-term potential. Despite our size, we offer relatively few funds compared
with many large fund families, allowing us to maintain a careful focus on our
objectives and enabling you to benefit from economies of scale.
AN UNPARALLELED GLOBAL RESEARCH EFFORT:
We opened our first overseas office in 1962, well before most mutual funds
began investing internationally. Today, the American Funds draw on one of the
industry's most globally integrated research networks. Capital Research spends
substantial resources getting to know companies and industries around the
world.
A MULTIPLE PORTFOLIO COUNSELOR SYSTEM:
More than 40 years ago, we developed a unique strategy for managing investments
that blends teamwork with individual accountability. Every American Fund is
divided among a number of portfolio counselors, each of whom manages his or her
portion independently, within each fund's objectives; in most cases, research
analysts manage a portion as well. Over time, this method has contributed to
consistency of results and continuity of management.
EXPERIENCED INVESTMENT PROFESSIONALS:
More than 75% of the portfolio counselors who serve the American Funds were in
the investment business before the stock market decline of October 1987. Long
tenure and experience through a variety of market conditions mean we aren't
"practicing" with your money.
A COMMITMENT TO LOW OPERATING EXPENSES:
You can't control market returns, but you can control what you invest in and
how much you pay to own it. American Funds provide exceptional value for
shareholders, with operating expenses that are among the lowest in the mutual
fund industry. Our portfolio turnover rates are low as well, helping keep
transaction costs and tax consequences contained.
A PORTFOLIO FOR EVERY INVESTOR
[illustration of a globe on the sand, with a sand dollar and a starfish next to
the globe]
Most financial advisers suggest that investors balance their portfolios by
investing across several types of investments. Which mix is right for you? That
depends on a number of things - including your risk tolerance, investment time
horizon and financial goals. The American Funds Group offers 29 funds with an
array of investment objectives to help you and your financial adviser build a
portfolio specifically tailored to your needs.
GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP Fund(r)
EuroPacific Growth Fund(r)
The Growth Fund of America(r)
The New Economy Fund(r)
New Perspective Fund(r)
New World Fund(sm)
SMALLCAP World Fund(r)
GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
American Mutual Fund(r)
Capital World Growth and Income Fund(sm)
Fundamental Investors(sm)
The Investment Company of America(r)
Washington Mutual Investors Fund(sm)
EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
Capital Income Builder(r)
The Income Fund of America(r)
BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
American Balanced Fund(r)
INCOME FUNDS
Emphasis on current income through bonds
American High-Income Trust(sm)
The Bond Fund of America(sm)
Capital World Bond Fund(r)
Intermediate Bond Fund of America(r)
U.S. Government Securities Fund(sm)
TAX-EXEMPT INCOME FUNDS
Emphasis on tax-free current income through municipal bonds
American High-Income Municipal Bond Fund(r)
Limited Term Tax-Exempt Bond Fund of America(sm)
The Tax-Exempt Bond Fund of America(r)
State-specific tax-exempt funds
The Tax-Exempt Fund of California(r)
The Tax-Exempt Fund of Maryland(r)
The Tax-Exempt Fund of Virginia(r)
MONEY MARKET FUNDS
Seek stable monthly income through money market instruments
The Cash Management Trust of America(r)
The Tax-Exempt Money Fund of America(sm)
The U.S. Treasury Money Fund of America(sm)
We also offer a full line of retirement plans and variable annuities.
For more complete information about any of the American Funds, including
charges and expenses, please obtain a prospectus from your financial adviser,
download one from our Web site at www.americanfunds.com, or phone the funds'
transfer agent, American Funds Service Company, at 800/421-0180. Please read
the prospectus carefully before you invest or send money. For more information,
ask your financial adviser for a copy of our brochure A Portfolio for Every
Investor.
<TABLE>
The Cash Management Trust of America
Investment Portfolio
September 30, 2000
Principal Market
Yield at Amount Value
Acquisition (000) (000)
-------- -------- --------
<S> <C> <C> <C>
Certificates of Deposit - 0.46%
National Westminster Bank PLC
October 25, 2000 6.52% $ 25,000 $ 25,000
----------
Total Certificates of Deposit 25,000
----------
Commercial Paper - 71.64%
ABN AMRO North America Finance Inc.
October 10, 2000 6.54 50,000 49,910
A.I. Credit Corp.
October 20, 2000 6.54 50,000 49,820
Alcoa Inc.
October 4, 2000 6.52 45,000 44,968
October 24, 2000 6.53 50,000 49,784
American Express Credit Corp.
October 19, 2000 6.54 50,000 49,828
November 16, 2000 6.54 25,000 24,788
American General Finance Corp.
October 27, 2000 6.53 50,000 49,756
American Honda Finance Corp.
October 12, 2000 6.53 50,000 49,892
October 27, 2000 6.53 25,000 24,878
Anheuser-Busch Cos., Inc.
November 3, 2000 6.52 37,000 36,774
November 9, 2000 6.52 15,000 14,892
ANZ (Delaware) Inc.
October 16, 2000 6.51 50,000 49,856
Asset Securitization Cooperative Corp.
October 19, 2000 (1) 6.54 50,000 49,828
November 16, 2000 (1) 6.55 25,000 24,788
AT&T Corp.
October 30, 2000 6.53 30,000 29,838
November 15, 2000 6.54 45,000 44,627
Avon Capital Corp.
October 11, 2000 (1) 6.51 25,000 24,950
Bank of Nova Scotia
October 3, 2000 6.57 25,000 24,986
November 17, 2000 6.53 25,000 24,784
Barclays U.S. Funding Corp.
October 6, 2000 6.53 50,000 49,946
Bayerische Hypo-Und Vereinsbank AG
October 4, 2000 6.56 25,000 24,982
October 10, 2000 6.54 25,000 24,955
BellSouth Telecommunications, Inc.
October 10, 2000 6.54 50,000 49,910
BMW US Capital Corp.
October 11, 2000 6.54 30,000 29,940
October 12, 2000 6.55 25,000 24,946
Campbell Soup Co.
October 24, 2000 6.52 50,000 49,784
CDC Commercial Paper Corp.
October 18, 2000 (1) 6.52 25,000 24,919
Chevron USA Inc.
October 25, 2000 6.52 50,000 49,775
Ciesco LP
November 2, 2000 6.54 50,000 49,703
CIT Group, Inc.
November 1, 2000 6.54 50,000 49,711
November 6, 2000 6.56 50,000 49,666
Coca-Cola Co.
October 19, 2000 6.53 50,000 49,829
November 3, 2000 6.51 50,000 49,695
Colgate-Palmolive Co.
November 13, 2000 (1) 6.54 32,000 31,747
Den Danske Corp. Inc.
October 12, 2000 6.51 25,000 24,946
October 16, 2000 6.53 25,000 24,928
October 18, 2000 6.51 25,000 24,919
Deutsche Bank Financial Inc.
October 23, 2000 6.52 50,000 49,793
Dresdner U.S. Finance Inc.
October 16, 2000 6.53 50,000 49,856
Duke Energy Corp.
October 3, 2000 6.56 40,000 39,978
E.I. Du Pont de Nemours and Co.
October 13, 2000 6.52 25,000 24,941
October 24, 2000 6.51 25,000 24,892
Eksportfinans ASA
October 10, 2000 6.53 50,000 49,910
Emerson Electric Co.
November 17, 2000 (1) 6.53 50,000 49,568
Equilon Enterprises LLC
October 3, 2000 6.53 21,000 20,989
November 6, 2000 6.54 25,000 24,833
Exxon Imperial U.S. Inc.
October 26, 2000 (1) 6.52 25,000 24,883
Ford Motor Credit Co.
October 6, 2000 6.57 25,000 24,973
October 12, 2000 6.55 50,000 49,891
Gannett Co., Inc.
October 13, 2000 (1) 6.55 50,000 49,882
October 16, 2000 (1) 6.52 50,000 49,856
General Electric Capital Corp.
October 16, 2000 6.54 25,000 24,928
October 19, 2000 6.53 25,000 24,914
October 30, 2000 6.54 25,000 24,865
General Motors Acceptance Corp.
October 6, 2000 6.55 50,000 49,946
October 18, 2000 6.53 50,000 49,838
Gillette Co.
October 5, 2000 (1) 6.56 25,000 24,977
Halifax PLC
October 11, 2000 6.51 50,000 49,901
Hewlett-Packard Co.
October 16, 2000 6.50 25,000 24,928
Household Finance Corp.
October 26, 2000 6.53 100,000 99,531
IBM Credit Corp.
October 3, 2000 6.58 50,000 49,973
October 11, 2000 6.54 50,000 49,901
International Lease Finance Corp.
October 2, 2000 6.57 40,000 39,986
October 6, 2000 6.54 25,000 24,973
John Hancock Capital Corp.
October 2, 2000 (1) 6.50 10,000 9,996
October 6, 2000 (1) 6.50 20,000 19,978
Johnson & Johnson
October 20, 2000 (1) 6.50 25,000 24,910
Kellogg Co.
November 14, 2000 6.53 50,000 49,596
Kimberly-Clark Corp.
October 27, 2000 (1) 6.53 45,000 44,781
Lucent Technologies Inc.
October 5, 2000 6.53 35,000 34,968
Merck & Co., Inc.
October 23, 2000 6.51 50,000 49,793
Minnesota Mining & Manufacturing Co.
October 20, 2000 6.49 25,000 24,910
Monte Rosa Capital Corp.
October 17, 2000 (1) 6.56 50,000 49,846
Motiva Enterprises LLC
October 27, 2000 6.53 25,000 24,878
November 13, 2000 6.54 20,000 19,842
Motorola Credit Corp.
October 6, 2000 6.55 25,000 24,973
October 26, 2000 6.51 25,000 24,883
Panasonic Finance America Inc.
October 2, 2000 (1) 6.58 25,000 24,991
October 11, 2000 (1) 6.53 25,000 24,950
Park Avenue Receivables Corp.
October 3, 2000 (1) 6.56 25,000 24,986
October 6, 2000 (1) 6.54 25,000 24,973
October 11, 2000 (1) 6.55 50,000 49,900
Pharmacia Corp.
October 2, 2000 6.59 25,000 24,991
October 4, 2000 6.51 20,000 19,986
October 17, 2000 6.53 30,000 29,908
Preferred Receivables Funding Corp.
October 13, 2000 (1) 6.54 35,000 34,918
October 18, 2000 (1) 6.55 45,010 44,863
October 26, 2000 (1) 6.55 20,000 19,906
Rio Tinto America, Inc.
November 1, 2000 (1) 6.55 25,000 24,856
November 20, 2000 (1) 6.55 15,000 14,862
Royal Bank of Canada
October 12, 2000 6.52 50,000 49,892
SBC Communications Inc.
October 18, 2000 (1) 6.54 48,000 47,844
November 16, 2000 (1) 6.54 25,000 24,789
Sony Capital Corp.
October 2, 2000 (1) 6.54 50,000 49,982
Svenska Handelsbanken Inc.
October 23, 2000 6.53 50,000 49,792
Texaco Inc.
October 10, 2000 6.54 50,000 49,910
Total Fina Elf SA
November 8, 2000 (1) 6.54 40,000 39,719
Toyota Motor Credit Corp.
October 13, 2000 (1) 6.52 45,000 44,894
Tribune Co.
November 2, 2000 (1) 6.53 50,000 49,698
United Technologies Corp.
October 23, 2000 (1) 6.53 25,000 24,896
USAA Capital Corp.
October 12, 2000 6.51 20,000 19,957
November 9, 2000 6.54 15,000 14,892
November 15, 2000 6.53 20,000 19,835
Verizon Network Funding Co.
October 4, 2000 6.54 50,000 49,964
Wal-Mart Stores, Inc.
October 3, 2000 (1) 6.54 27,000 26,985
October 23, 2000 (1) 6.51 25,000 24,897
Wells Fargo & Co.
October 20, 2000 6.52 25,000 24,910
October 27, 2000 6.53 25,000 24,878
----------
Total Commercial Paper 3,881,332
----------
Federal Agency Discount Notes - 27.41%
Fannie Mae
October 5, 2000 6.56 50,000 49,955
October 20, 2000 6.60 10,000 9,964
October 25, 2000 6.57 50,000 49,777
Federal Home Loan Banks
October 4, 2000 6.55 50,000 49,964
October 18, 2000 6.54 50,000 49,840
October 20, 2000 6.58 100,000 99,643
October 25, 2000 6.58 50,000 49,777
November 17, 2000 6.56 30,000 29,744
November 22, 2000 6.57 105,000 103,997
December 1, 2000 6.58 65,500 64,766
Freddie Mac
October 3, 2000 6.56 85,000 84,955
October 5, 2000 6.57 60,800 60,746
October 10, 2000 6.59 75,000 74,866
October 13, 2000 6.60 84,500 84,303
October 17, 2000 6.59 165,500 164,997
October 24, 2000 6.55 40,000 39,829
October 31, 2000 6.58 50,000 49,724
November 7, 2000 6.57 100,000 99,324
November 14, 2000 6.56 50,000 49,600
November 21, 2000 6.57 95,000 94,109
Sallie Mae
December 21, 2000 (2) 6.71 25,000 24,997
January 18, 2001 (2) 6.63 50,000 49,992
February 15, 2001 (2) 6.53 50,000 49,981
----------
Total Federal Agency Discount Notes 1,484,850
----------
Total Investment Securities (cost:$5,391,232,000) 5,391,182
Excess of cash and receivables over payables 26,816
----------
NET ASSETS $5,417,998
----------
(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 Financial Statements
</TABLE>
<TABLE>
THE CASH MANAGEMENT TRUST OF AMERICA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2000 (dollars in thousands)
<S> <C> <C>
Assets:
Investment securities at market
(cost: $5,391,232) $5,391,182
Receivables for--
Sales of fund's shares $71,299
Accrued interest 1,566
Other 4 72,869
5,464,051
Liabilities:
Payables for--
Repurchases of fund's shares 41,919
Dividends on fund's shares 1,749
Management services 1,264
Other expenses 1,121 46,053
Net Assets at September 30, 2000 (unlimited shares authorized) $5,417,998
Class A shares
Equivalent to $1.00 per share
Net assets $5,417,201
Shares outstanding 5,417,179,577
Class B shares
Equivalent to $1.00 per share
Net assets $797
Shares outstanding 796,991
STATEMENT OF OPERATIONS
for the year ended September 30, 2000 (dollars in thousands)
Investment Income:
Income:
Interest $345,505
Expenses:
Management services fee $16,005
Distribution expenses- Class A 4,348
Distribution expenses- Class B 2
Transfer agent fee- Class A 9,914
Transfer agent fee- Class B -
Reports to shareholders 356
Registration statement and prospectus 1,030
Postage, stationery and supplies 2,251
Trustees' fees 47
Auditing and legal fees 49
Custodian fee 363
Taxes other than federal income tax 74 34,439
Net investment income 311,066
Change from Unrealized Appreciation to
Unrealized Depreciation on Investments:
Net unrealized appreciation (depreciation)
on investments:
Beginning of year 32
End of year (50)
Net change from unrealized appreciation to unrealized
depreciation on investments (82)
Net Increase in Net Assets
Resulting from Operations $310,984
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year Ended September 30
2000 1999
Operations:
Net investment income $311,066 $231,655
Net unrealized appreciation (depreciation)
on investments (82) 16
Net increase in net assets
resulting from operations 310,984 231,671
Dividends Paid to Shareholders:
Class A (310,985) (231,656)
Class B (10) 0
Total dividends paid to shareholders (310,995) (231,656)
Capital Share Transactions:
Proceeds from shares sold 15,732,691 14,382,799
Proceeds from shares issued in reinvestment
of net investment income dividends 285,391 215,273
Cost of shares repurchased (16,463,123) (13,338,942)
Net (decrease) increase in net assets resulting
from capital share transactions (445,041) 1,259,130
Total (Decrease) Increase in Net Assets (445,052) 1,259,145
Net Assets:
Beginning of year 5,863,050 4,603,905
End of year $5,417,998 $5,863,050
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Cash Management Trust of America (the "fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income on cash reserves, while
preserving capital and maintaing liquidity, through investments in high-quality
short-term money market instruments. The fund offers Class A and Class B
shares. Class B shares are sold without an initial sales charge but are subject
to a contingent deferred sales charge paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares have higher
distribution expenses and transfer agent fees than Class A shares. Class B
shares are automatically converted to Class A shares eight years after 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 accounting principles generally accepted in the United
States 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. The ability of the issuers of the
fixed-income securities held by the fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
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 fixed-income securities 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.
ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily between Class A
and Class B based on their relative net asset values. Distribution expenses,
transfer agent fees and any other class-specific expenses are accrued daily and
charged to the applicable share 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 September 30, 2000, net unrealized depreciation on investments for book
and federal income tax purposes aggregated $50,000, of which all related to
depreciated securities. The cost of portfolio securites for book and federal
income tax purposes was $5,391,232,000 at September 30, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $16,005,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
NET ASSET LEVEL
Rate In Up to
Excess
of
<S> <C> <C>
0.32% $0 $1 billion
0.29 1 billion 2 billion
0.27 2 billion
</TABLE>
DISTRIBUTION EXPENSES - The fund has adopted plans of distribution with
American Funds Distributors, Inc. (AFD) under which it may finance activities
primarily intended to sell fund shares, provided the categories of expenses are
approved in advance by the fund's Board of Trustees. The plans provide for
aggregate annual expense limits of 0.15% of net assets for Class A shares, and
0.90% of net assets for Class B shares.
For Class A shares, approved categories of expense include dealer service fees
of up to 0.15% of net assets. For the year ended September 30, 2000, aggregate
distribution expenses were $4,348,000, or 0.08% of net assets attributable to
Class A shares.
For Class B shares, approved categories of expense include fees of 0.75% per
annum payable to AFD. AFD sells the rights to receive such payments (as well as
any contingent deferred sales charges payable in respect of shares sold during
the period) in order to finance the payment of dealer commissions. Also
included are service fees of 0.15% per annum. These fees are paid to AFD to
compensate AFD for paying service fees to qualified dealers. For the year
ended September 30, 2000, aggregate distribution expenses were $2,000, or 0.90%
of net assets attributable to Class B shares.
As of September 30, 2000, accrued and unpaid distribution expenses payable to
AFD for Class A and Class B shares were $296,000 and $1,000, respectively.
TRANSFER AGENT FEE - A fee of $9,914,000 was incurred during the year ended
September 30, 2000 pursuant to an agreement with American Funds Service Company
(AFS), the transfer agent for the fund.
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 September 30, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $29,000.
AFFILIATED TRUSTEES AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees 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 $47,067,597,000 and $47,903,032,000, repectively, during the
year ended September 30, 2000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the year ended September 30, 2000, the custodian fee of $363,000
includes $18,000 that was paid by these credits rather than in cash.
Net assets consisted of the following:
<TABLE>
<S> <C>
dollars in thousands
Capital paid in on shares of beneficial interest $5,417,976
Undistributed net Investment Income 72
Net unrealized depreciation (50)
Net Assets $5,417,998
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
Year Ended Year ended
September 30, 2000 September 30, 1999
Amount (000) Shares Amount (000) Shares
<S> <C> <C> <C> <C>
Class A Shares:
Sold $15,730,750 15,730,750,102 $ 14,382,799 14,382,799,048
Reinvestment of dividends 285,383 285,383,370 215,273 215,272,362
Repurchased (16,461,971) (16,461,971,145) (13,338,942) (13,338,941,818)
Net (decrease) increase in Class A (445,838) (445,837,673) 1,259,130 1,259,129,592
Class B Shares*:
Sold 1,941 1,940,764 - -
Reinvestment of dividends 8 8,464 - -
Repurchased (1,152) (1,152,237) - -
Net increase in Class B 797 796,991 - -
Total net (decrease) increase in fund $ (445,041) (445,040,682) $ 1,259,130 1,259,129,592
* Class B shares were not offered before March 15, 2000.
</TABLE>
<TABLE>
PER-SHARE DATA AND RATIOS (1)
<S> <C> <C> <C>
Net asset Dividends
value, Net (from net
beginning investment investment
Year ended of year income income)
Class A:
2000 $1.00 $.055 (2) $(.055)
1999 1.00 .045 (.045)
1998 1.00 .050 (.050)
1997 1.00 .049 (.049)
1996 1.00 .050 (.050)
Class B:
2000 1.00 .027 (2) (.027)
Net asset Net assets,
value, end Total end of year
Year ended of year return (in millions)
Class A:
2000 $1.00 5.66% $5,417
1999 1.00 4.59 5,863
1998 1.00 5.15 4,604
1997 1.00 5.03 3,527
1996 1.00 5.06 3,304
Class B:
2000 1.00 2.73 1
Ratio of Ratio of
expenses net income
to average to average
Year ended net assets net assets
Class A:
2000 .61% 5.53%
1999 .58 4.52
1998 .58 5.02
1997 .57 4.93
1996 .60 4.95
Class B:
2000 1.43 (3) 5.21 (3)
(1) The years 1996 through 2000 represent,
for Class A shares, fiscal years ended
September 30. The period ended 2000
represents, for Class B shares, the
199-day period ended September 30,
2000. Class B shares were not
offered before March 15, 2000. Total
return for Class B is based on activity
during the period and
thus is not representative of a full year.
Total returns exclude all sales charges,
including
contingent deferred sales charges.
(2) Based on average shares outstanding.
(3) Annualized.
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of The Cash Management Trust of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Cash Management Trust of
America (the "Fund") at September 30, 2000, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and per-share data and
ratios (hereafter referred to as "financial statements") are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United Sates of America, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at September
30, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2000
2000 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, none of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2001 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2000 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
<TABLE>
The U.S. Treasury Money Fund of America
Investment Portfolio
September 30, 2000
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Acquisition (000) (000)
------------- ------- -------------
U.S. Treasury Securities - 101.95%
U.S. Treasury bills 10/5/00 6.02% - 6.20% $16,635 $ 16,622
U.S. Treasury bills 10/12/00 5.98% - 6.18% 45,400 45,312
U.S. Treasury bills 10/19/00 6.16% 20,000 19,939
U.S. Treasury bills 10/26/00 6.18% 8,920 8,883
U.S. Treasury bills 11/2/00 6.05% - 6.25% 37,910 37,707
U.S. Treasury bills 11/9/00 6.11% - 6.27% 55,990 55,631
U.S. Treasury bills 11/16/00 6.09% 23,900 23,714
U.S. Treasury bills 11/24/00 6.11% - 6.32% 47,215 46,805
U.S. Treasury bills 11/30/00 6.08% - 6.14% 17,050 16,883
U.S. Treasury bills 12/7/00 6.10% - 6.16% 65,720 64,994
U.S. Treasury bills 12/14/00 6.13% - 6.16% 33,530 33,122
U.S. Treasury bills 12/21/00 6.17% - 6.18% 7,050 6,955
-------------
Total Investment Securities (cost: $376,483,000) 376,567
Excess of payables over cash and receivables (7,194)
-------------
Net Assets $369,373
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
The U.S. Treasury Money Fund of America
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2000
(dollars in thousands)
<S> <C> <C>
Assets:
Investment securities at market
(cost: $376,483) $376,567
Receivables for --
Sales of fund's shares 1,821
378,388
Liabilities:
Payables for --
Bank overdraft $6,125
Repurchases of fund's shares 2,626
Dividends on fund's shares 85
Management services 91
Other expenses 88 9,015
Net Assets at September 30, 2000 --
Equivalent to $1.00 per share on
369,287,127 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $369,373
STATEMENT OF OPERATIONS
for the year ended September 30, 2000
(dollars in thousands)
Investment Income:
Income:
Interest $23,590
Expenses:
Management services fee $1,296
Distribution expenses 431
Transfer agent fee 623
Reports to shareholders 13
Registration statement and prospectus 113
Postage, stationery and supplies 140
Trustees' fees 17
Auditing and legal fees 33
Custodian fee 37
Taxes other than federal income tax 7 2,710
Net investment income 20,880
Increase in Unrealized Appreciation
on Investments:
Net unrealized appreciation on investments:
Beginning of year 79
End of year 85
Net increase in unrealized appreciation
on investments 6
Net Increase in Net Assets Resulting
from Operations $20,886
STATEMENT OF CHANGES IN NET ASSETS
(dollars in thousands)
Year ended September 30
2000 1999
Operations:
Net investment income $20,880 $16,664
Net unrealized appreciation (depreciation)
on investments 6 (140)
Net increase in net assets
resulting from operations 20,886 16,524
Dividends Paid to Shareholders (20,879) (16,664)
Capital Share Transactions:
Proceeds from shares sold 840,272 774,656
Proceeds from shares issued in
reinvestment of net investment income
dividends 19,527 15,677
Cost of shares repurchased (957,128) (679,108)
Net (decrease) increase net assets resulting
from capital share transactions (97,329) 111,225
Total (Decrease) Increase Net Assets (97,322) 111,085
Net Assets:
Beginning of year 466,695 355,610
End of year $369,373 $466,695
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 accounting principles generally accepted in the United
States 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. The ability of the issuers of the
fixed-income securities held by the fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
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
fixed-income securities 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 September 30, 2000, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $85,000 of which all related to
appreciated securities. The cost of portfolio securities for book and federal
income tax purposes was $376,483,000 at September 30, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,296,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
Net Asset Level
Rate In Excess of Up to
<S> <C> <C>
0.300% $ 0 $800 million
0.285% 800 million
</TABLE>
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution with American Funds
Distributors, Inc. (AFD), the fund may expend up to 0.15% of net assets
annually for any activities primarily intended to sell fund shares, provided
the categories of expense are approved in advance 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. For the year ended
September 30, 2000, aggregate distribution expenses under the Plan were
$431,000 or .10% of net assets. As of September 30, 2000, accrued and unpaid
distribution expenses payable to AFD were $30,000.
TRANSFER AGENT FEE - A fee of $623,000 was incurred during the year ended
September 30, 2000 pursuant to an agreement with American Funds Service Company
(AFS), the transfer agent for the fund.
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 September 30, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $13,000.
AFFILIATED TRUSTEES AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees 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 $2,268,973,000 and $2,382,639,000, respectively, during the year
ended September 30, 2000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the year ended September 30, 2000, the custodian fee of $37,000 includes
$2,000 that was paid by these credits rather than in cash.
Net assets consisted of the following:
<TABLE>
<S> <C>
dollars in thousands
Capital paid in on shares of beneficial interest $369,287
Undistributed net Investment Income 1
Net unrealized appreciation 85
Net Assets $369,373
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C>
Year ended September 30, 2000
Amount (000) Shares
Sold $ 840,272 840,272,661
Reinvestment of dividends 19,527 19,526,770
Repurchased (957,128) (957,128,378)
Total Net (Decrease) Increase in Fund $ (97,329) (97,328,947)
Year ended September 30, 1999
Amount (000) Shares
Sold $ 774,656 774,656,722
Reinvestment of dividends 15,677 15,676,872
Repurchased (679,108) (679,107,911)
Total Net (Decrease) Increase in Fund $ 111,225 111,225,683
</TABLE>
<TABLE>
The U. S. Treasury Fund of America
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C>
Net asset Dividends
value, Net (from net
beginning investment investment
Year ended of year income income)
Class A : (1)
2000 $ 1.00 $.049(2) $(.049)
1999 1.00 .039 (.039)
1998 1.00 .045 (.045)
1997 1.00 .046 (.046)
1996 1.00 .046 (.046)
Net asset Net assets,
value, end Total end of year
Year ended of year return (in millions)
Class A : (1)
2000 $ 1.00 5.00% $369
1999 1.00 4.00 467
1998 1.00 4.63 356
1997 1.00 4.71 279
1996 1.00 4.66 256
Ratio of Ratio of
expenses net income
to average to average
Year ended net assets net assets
Class A : (1)
2000 .62% 4.81%
1999 .59 3.95
1998 .59 4.49
1997 .53 4.61
1996 .65 4.53
(1) The fund offers Class A shares only.
(2) Based on average shares outstanding
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of The U.S. Treasury Money Fund of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The U.S. Treasury Money Fund of
America (the "Fund") at September 30, 2000, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and per-share data and
ratios (hereafter referred to as "financial statements") are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United Sates of America, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at September
30, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2000
2000 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, all of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2001 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2000 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
<TABLE>
The Tax-Exempt Money Fund of America
Investment Portfolio, September 30, 2000
Principal Market
Yield at Amount Value
Municipal Securities Acquisition (000) (000)
-------------------------------------------- -------- -------- --------
<S> <C> <C> <C>
Alabama - 1.27%
Industrial Development Board of the City of Montgomery
, Pollution Control and Solid Waste Disposal Revenue
Refunding Bonds (General Electric Company Project), 4.20% $3,500 $ 3,500
Series 1990, 4.20% 10/2/00
Alaska - 1.96%
City of Valdez:
Marine Terminal Revenue Refunding Bonds (ARCO
Transportation Alaska, Inc. Project), TECP:
1994 Series A, 4.15% 10/3/00 4.15 1,700 1,700
1994 Series C, 4.25% 10/6/00 4.25 1,000 1,000
Variable Rate Marine Terminal Revenue Refunding Bonds:
(Exxon Pipeline Company Project), 1993 Series C, 5.50 1,000 1,000
5.50% 10/2/00*
(Mobil Alaska Pipeline Co. Project), 1993 Series A, 5.40 1,700 1,700
5.40% 10/6/00*
Arizona - 3.67%
Salt River Project Agricultural Improvement and Power
District, Promissory Notes, TECP:
Series A:
4.20% 10/4/00 4.20 1,500 1,500
4.10% 10/5/00 4.10 1,100 1,100
4.20% 11/1/00 4.20 2,500 2,500
Series B:
4.10% 10/4/00 4.11 2,000 2,000
4.10% 11/9/00 4.10 2,000 2,000
County of Apache, Industrial Development Revenue Bonds
(Tuscon Electric Power Co. Springerville
Project), 1983 Series A, 5.55% 10/06/00* 5.55 1,000 1,000
Colorado - 1.82%
General Fund Tax and Revenue Anticipation Notes, 4.29 5,000 5,023
Series 2000A, 5.00% 6/27/01
Delaware - 1.09%
Economic Development Authority, Industrial Development
Revenue Bonds (Delaware Clean Power Project),
Series 1997D AMT, 5.85% 10/6/00* 5.85 3,000 3,000
District of Columbia - 3.48%
Multimodal Revenue Bonds (American National Red Cross 4.15 2,100 2,100
Issue), Series 2000, 4.15% 11/7/00
Variable Rate Revenue Bonds (National Academy of
Sciences Project), Series 1999 B, TECP:
4.25% 10/19/00 4.25 2,500 2,500
4.35% 10/23/00 4.35 2,500 2,500
4.20% 11/15/00 4.20 2,500 2,500
Florida - 1.56%
City of Gainesville, Utilities System, Commercial 4.20 2,300 2,300
Paper Notes, Series C, TECP, 4.20% 10/16/00
University of South Florida Foundation, Inc., 5.45 2,000 2,000
Certificates of Participation, Series 1999, 5.45% 10/6/00*
Georgia - 0.91%
Municipal Electric Authority of Georgia Commercial
Paper Program, Project One Bond Anticipation Notes,
Series 1985 A, TECP:
4.25% 10/13/00 4.25 1,500 1,500
4.10% 11/8/00 4.10 1,000 1,000
Illinois - 1.09%
Illinois Development Finance Authority, Variable Rate
Demand Revenue Bonds, Series 1999 (Metropolitan
Family Services Project), 5.70% 10/6/00* 5.70 3,000 3,000
Kentucky - 3.34%
Pendleton County, Multi-County Lease Revenue Bonds
(Kentucky Association of Counties Leasing Trust
Program), Series 1989, Money Market Municipal, TECP:
4.20% 11/6/00 4.20 4,200 4,200
4.10% 11/7/00 4.10 3,000 3,000
4.05% 11/9/00 4.05 2,000 1,999
Louisiana - 0.40%
South Louisiana Port Commission, Port Facility Revenue 5.65 1,100 1,100
Bonds (Holnam Inc. Project), Series 1997, AMT,
5.65% 10/6/00*
Maryland - 10.81%
Health and Higher Education Facilities Authority, Pooled
Loan Program Revenue Notes (The Johns Hopkins Hospital),
Series C, TECP:
4.05% 10/6/00 4.05 1,800 1,800
4.20% 10/6/00 4.20 1,000 1,000
4.20% 10/12/00 4.20 3,500 3,500
4.15% 10/13/00 4.15 1,500 1,500
4.15% 11/3/00 4.15 3,300 3,300
Anne Arundel County, Economic Development Revenue Bonds
(Baltimore Gas and Electric Co. Project), TECP:
Series 1985, 4.30% 10/3/00 4.30 4,000 4,000
Series 1988, AMT:
4.25% 10/5/00 4.25 2,500 2,500
4.25% 11/3/00 4.25 1,300 1,300
4.20% 11/8/00 4.20 2,900 2,900
Baltimore County, Economic Development Revenue Bonds 4.20 1,100 1,100
(Baltimore Gas and Electric Co. Project), Series 1985,
TECP, 4.20% 10/4/00
Montgomery County, Consolidated Commercial Paper Bond
Anticipation Notes, Series 1995, TECP:
4.20% 10/2/00 4.20 3,000 3,000
4.25% 10/12/00 4.25 3,900 3,900
Massachusetts - 3.35%
General Obligation Bond Anticipation Notes, 2000 4.36 3,000 3,017
Series A, 5.00% 9/6/01
Development Finance Agency, First Mortgage Revenue 5.45 4,500 4,500
Variable Rate Bonds (Lassell Village Project), Series
1998C, 5.45% 10/6/00*
Water Resources Authority, Series 1994, TECP, 4.20 1,700 1,700
4.20% 11/6/00
Michigan - 0.73%
Municipal Bond Authority, Revenue Notes, Series 4.35 2,000 2,010
2000C-2, 5.00% 8/23/01
Minnesota - 2.91%
General Obligation State Various Purpose Bonds, 4.27 1,500 1,517
5.70% 8/1/01
City of Rochester, Health Care Facilities Revenue Bonds
(Mayo Foundation/Mayo Medical Center), Adjustable
Tender, TECP:
Series 1992A, 4.25% 11/2/00 4.25 1,900 1,900
Series 1992B, 4.15% 10/11/00 4.15 3,000 3,000
Series 1992C, 4.00% 11/1/00 4.00 1,600 1,600
Missouri - 2.54%
Higher Education Loan Authority, Adjustable Rate Demand 5.50 3,600 3,600
Student Loan Revenue Bonds, AMT, 5.50% 10/6/00*
City of Columbia, Special Obligation Insurance Reserve 5.55 3,400 3,400
Bonds, Series 1998A, 5.55% 10/6/00*
New Mexico - 1.46%
Tax and Revenue Anticipation Notes, Series 2000-2001, 4.31 4,000 4,018
5.00% 6/29/01
New York - 1.65%
State Housing Finance Agency, Revenue Bonds (Saxony 5.55 1,500 1,500
Housing), 1997 Series A, AMT, 5.55% 10/6/00*
Municipal Assistance Corporation For the City of New York:
Series 1997H, 5.00% 7/1/01 4.28 1,860 1,870
Series 1999N, 5.00% 7/1/01 4.28 1,160 1,166
North Carolina - 2.29%
Educational Facilities Finance Agency, Revenue Bonds 5.50 2,800 2,800
(Duke University Project), Series 1992A, 5.50% 10/6/00*
Medical Care Commission Variable Rate Hospital
Revenue Bonds
(Pooled Financing Project), Series 1996A, 5.55% 10/02/00* 5.55 1,005 1,005
Board of Governors of the University of North Carolina
at Chapel Hill, Athletic Facilities Revenue Bonds,
Series 1998, 5.70% 10/6/00* 5.70 2,500 2,500
Ohio - 4.32%
City of Cleveland, Subordinated Income Tax Variable Rate 5.40 4,420 4,420
Refunding Bonds, Series 1994, 5.40% 10/6/00*
County of Hamilton, Hospital Revenue Bonds (Bethesda 5.50 2,000 2,000
Hospital, Inc.), Series 1995, 5.50% 10/6/00*
Ohio State University, Revenue Bonds:
Series 1997, 5.40% 10/6/00* 5.40 3,180 3,180
Series 1999B, 5.40% 10/6/00* 5.40 2,300 2,300
Pennsylvania - 6.03%
Higher Education Assistance Agency, Student Loan 5.70 2,000 2,000
Adjustable Rate Revenue Bonds, 1997 Series A, AMT,
5.70% 10/6/00*
Delaware County Industrial Development Authority:
Pollution Control Revenue Refunding Bonds (Philadelphia 4.10 4,600 4,600
Electric Co. Project), 1998 Series A, FGIC Insured,
TECP, 4.10% 10/6/00
Solid Waste Revenue Bonds (Scott Paper Co. Project), 5.60 1,000 1,000
Series 1998C, 5.60% 10/6/00*
City of Philadelphia, Gas Works Revenue Notes, CP 4.20 2,000 2,000
Series C, 4.20% 10/3/00
Venango Industrial Development Authority, Resource
Recovery Revenue Bonds (Scrubgrass Project), Series
1990A, TECP, AMT:
4.50% 10/20/00 4.50 2,000 2,000
4.50% 10/24/00 4.50 3,500 3,500
4.30% 10/25/00 4.30 1,500 1,500
South Carolina - 5.48%
Public Service Authority (Santee Cooper Hydroelectric
Project), TECP, Series 1983:
4.10% 10/3/00 4.10 4,000 4,000
4.10% 10/10/00 4.10 2,000 2,000
4.20% 11/1/00 4.20 2,000 2,000
4.25% 11/8/00 4.25 3,100 3,100
York County, Pollution Control Facilities Revenue 4.30 4,000 4,000
Refunding Bonds (Duke Power Co. Project), Series
1990, 4.30% 11/14/00
Tennessee - 1.78%
General Obligation Bond Anticipation Notes, Series A, 4.20 1,100 1,100
4.20% 11/20/00
Public Building Authority of the County of Montgomery,
Adjustable Rate Pooled Financing Revenue Bonds
(Tennesse County Loan Pool), Series 1997, 5.70% 10/6/00* 5.70 3,800 3,800
Texas - 19.54%
Tax and Revenue Anticipation Notes, Series 2000, 4.30 3,700 3,729
5.25% 8/31/01
Brazos Higher Education Authority Inc., Student Loan 5.50 1,000 1,000
Revenue Bonds, Series 1993 B-1, AMT, 5.50% 10/6/00*
Brazos River Authority, Collateralized Pollution
Control Revenue Refunding Bonds
Series 1994, TECP, AMT, 4.25% 11/7/00 4.25 3,800 3,800
Series D, MBIA Insured, AMT, 5.70% 10/6/00* 5.70 3,000 3,000
City of Brownsville Utility System, Series A, TECP:
4.05% 10/5/00 4.05 3,500 3,500
4.20% 10/11/00 4.20 1,900 1,900
4.20% 10/11/00 4.20 2,000 2,000
4.20% 11/2/00 4.20 2,000 2,000
4.10% 11/8/00 4.10 1,000 1,000
Harris County General Obligation Notes, TECP:
Series A, 4.20% 11/2/00 4.20 1,800 1,800
Series C, 4.25% 11/13/00 4.25 3,000 3,000
Series D:
4.20% 10/10/00 4.20 1,854 1,854
4.15% 10/12/00 4.15 2,204 2,204
4.10% 11/13/00 4.10 2,650 2,649
City of Houston, General Obligation Commercial Paper
Notes, TECP, Series A:
4.25% 10/10/00 4.25 4,500 4,500
4.20% 11/3/00 4.20 1,600 1,600
4.10% 11/10/00 4.10 1,500 1,500
City of Midlothian Industrial Development Corp.,
Variable Rate Demand Pollution Control Revenue Bonds
(Box-Crow Cement Co. Project), 5.55% 10/6/00* 5.55 4,300 4,300
South Texas Higher Education Authority, Inc. Student
Loan Revenue Bonds, Series 1997, MBIA Insured, AMT:
5.50% 10/6/00* 5.50 4,900 4,900
5.50% 10/6/00* 5.50 3,600 3,600
Utah - 1.60%
Intermountain Power Agency Variable Rate Power Supply
Revenue Bonds, 1985 Series F, AMBAC Insured, TECP:
4.25% 12/04/00 4.25 2,400 2,399
4.25% 12/05/00 4.25 2,000 2,000
Virginia - 0.54%
City of Norfolk, Industrial Development Authority,
Hospital Revenue Bonds (Sentara Hospitals -
Norfolk Project)
Series 1990A, TECP, 4.20% 10/2/00 4.20 1,500 1,500
Washington - 5.18%
Public Power Supply System, Project No. 1 Refunding
Electric Revenue Bonds:
Series 1991A, 6.875% 7/1/17 (Prerefunded 7/1/01) 4.31 3,000 3,113
Series 1993-1A, 5.45% 10/6/00* 5.45 2,240 2,240
Port of Seattle:
Variable Rate General Obligation Bonds, Series 5.55 2,500 2,500
1985, 5.55% 10/6/00*
Subordinate Lien Revenue Notes, Series A, TECP:
4.20% 10/4/00 4.20 4,330 4,330
4.25% 10/13/00 4.25 2,100 2,100
West Virginia - 2.36%
The County Commission of Marion County, Solid Waste
Disposal Facility Revenue Bonds,
1990 Series A (Grant Town Cogeneration Project), 5.65 1,500 1,500
AMT, 5.65% 10/6/00*
The County Commission of Putnam County, Solid Waste
Disposal Revenue Bonds (Toyota Motor Manufacturing
Project),
2000 Series A, AMT, 5.60% 10/6/00* 5.60 5,000 5,000
Wisconsin - 3.56%
General Obligation Bonds, TECP:
Series 1997A:
4.20% 11/6/00 4.20 3,423 3,423
4.10% 11/9/00 4.10 2,000 2,000
Series 1998A, 4.10% 11/10/00 4.10 2,189 2,189
Series 1998B, 4.25% 11/3/00 4.25 1,212 1,212
Transportation Revenue Commercial Paper Notes of 1997, 4.10 1,000 1,000
Series A, TECP, 4.10% 11/2/00
Wyoming - 1.09%
Tax and Revenue Anticipation Notes, Series 2000A, 4.35 3,000 3,013
5.00% 6/27/01
-------
Total Municipal Securities (cost: $269,505,000) 269,480
Excess of cash and receivables over payables 6,022
-------
Net Assets $275,502
-------
*Coupon rate may change periodically; "yield at
acquisition" reflects current coupon rate.
See Notes to Financial Statements
</TABLE>
<TABLE>
The Tax-Exempt Money Fund of America
FINANCIAL STATEMENTS
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2000 (dollars in thousands)
Assets:
Investment securities at market
(cost: $269,505) $269,480
Cash 742
Receivables for--
Sales of fund's shares $4,955
Accrued interest 1,248 6,203
276,425
Liabilities:
Payables for--
Repurchases of fund's shares 634
Dividends on fund's shares 62
Management services 88
Other expenses 139 923
Net Assets at September 30, 2000 --
Equivalent to $1.00 per share on
275,597,809 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $275,502
STATEMENT OF OPERATIONS
for the year ended September 30, 2000 (dollars in thousands)
Investment Income:
Income:
Interest $10,613
Expenses:
Management services fee $1,055
Distribution expenses 123
Transfer agent fee 191
Reports to shareholders 13
Registration statement and prospectus 122
Postage, stationery and supplies 112
Trustees' fees 14
Auditing and legal fees 53
Custodian fee 56
Taxes other than federal income tax 8 1,747
Net investment income 8,866
Change in Unrealized Depreciation
on Investments:
Net unrealized depreciation
on investments:
Beginning of year (13)
End of year (24)
Net change in unrealized
depreciation on investments (11)
Net Increase in Net Assets Resulting
from Operations $8,855
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2000 1999
Operations:
Net investment income $ 8,866 $ 5,659
Net unrealized
depreciation on investments (11) (59)
Net increase in net assets
resulting from operations 8,855 5,600
Dividends Paid to Shareholders (8,875) (5,698)
Capital Share Transactions:
Proceeds from shares sold 516,723 475,332
Proceeds from shares issued in
reinvestment of net investment
income dividends 8,239 5,249
Cost of shares repurchased (504,880) (423,237)
Net increase in net assets
resulting from capital share
transactions 20,082 57,344
Total Increase in Net Assets 20,062 57,246
Net Assets:
Beginning of year 255,440 198,194
End of year $275,502 $255,440
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 accounting principles generally accepted in the United
States 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. The ability of the issuers of the
fixed-income securities held by the fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are accounted for as of the trade date. Interest income is recognized on the
accrual basis. Market discounts, premiums, and original issue discounts on
fixed-income securities 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 September 30, 2000, net unrealized depreciation on investments for book
and federal income tax purposes aggregated $24,000; $1,000 related to
appreciated securities and $25,000 related to depreciated securites. The cost
of portfolio securities for book and federal income tax purposes was
$269,505,000 at September 30, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,055,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
Net Asset Level
Rate In Excess of Up to
<S> <C> <C>
.39% $ 0 $200 million
.37% 200 million 600 million
.33% 600 million 1.2 billion
.29% 1.2 billion
</TABLE>
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution with American Funds
Distributors, Inc. (AFD), the fund may expend up to 0.15% of net assets
annually for any activities primarily intended to sell fund shares, provided
the categories of expense are approved in advance 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. For the year ended
September 30, 2000, aggregate distribution expenses under the plan were
$123,000 or .04% of net assets. As of September 30, 2000, accrued and unpaid
distribution expenses payable to AFD were $9,000.
TRANSFER AGENT FEE - A fee of $191,000 was incurred during the year ended
September 30, 2000 pursuant to an agreement with American Funds Service Company
(AFS), the transfer agent for the fund .
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 September 30, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $13,000.
AFFILIATED TRUSTEES AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees 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 $1,331,835,000 and $1,318,742,000, respectively, during the year
ended September 30, 2000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the year ended September 30, 2000, the custodian fee of $56,000 includes
$1,000 that was paid by these credits rather than in cash.
Net assets consisted of the following:
<TABLE>
<S> <C>
dollars in thousands
Capital paid in on shares of beneficial interest $275,598
Distributions in excess of net investment income (72)
Net unrealized depreciation (24)
Net Assets $275,502
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C>
Year ended
September 30, 2000
Amount (000) Shares
Sold $ 516,723 516,723,462
Reinvestment of dividends 8,239 8,238,698
Repurchased (504,880) (504,879,768)
Total Net Increase in Fund $ 20,082 20,082,392
Year ended
September 30, 1999
Amount (000) Shares
Sold $ 475,332 475,331,901
Reinvestment of dividends 5,249 5,248,578
Repurchased (423,237) (423,236,513)
Total Net Increase in Fund $ 57,344 57,343,966
</TABLE>
<TABLE>
The Tax-Exempt Money fund of America
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C>
Net asset Dividends
value, Net (from net
beginning investment investment
Year ended of year income income)
Class A:(1)
2000 $1.00 $.032 (2) $(.032)
1999 1.00 .025 (.025)
1998 1.00 .029 (.029)
1997 1.00 .029 (.029)
1996 1.00 .029 (.029)
Net asset Net assets,
value, end Total end of year
Year ended of year return (in millions)
Class A:(1)
2000 $1.00 3.29% $276
1999 1.00 2.51 255
1998 1.00 2.97 198
1997 1.00 2.94 160
1996 1.00 2.91 144
Ratio of Ratio of
expenses to expenses to
average net average net Ratio of
assets - assets - income
before fee after fee to average
Year ended waiver waiver net assets
Class A:(1)
2000 .64% .64% 3.23%
1999 .68 .65 2.33
1998 .71 .65 2.94
1997 .74 .65 2.94
1996 .77 .65 2.88
(1) The fund offers Class A shares only.
(2) Based on average shares outstanding.
</TABLE>
To the Board of Trustees and Shareholders of The Tax-Exempt Money Fund of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Tax-Exempt Money Fund of
America (the "Fund") at September 30, 2000, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and per-share data and
ratios (hereafter referred to as "financial statements") are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United Sates of America, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at September
30, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2000
2000 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. All of the dividends paid from net
investment income qualify as exempt-interest dividends.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2001 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2000 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
SHAREHOLDER SERVICES
AMERICAN FUNDSLINE(R)
[illustration of a telephone handset]
Use our 24-hour automated phone system for fund information and transactions.
FUNDSLINE ONLINE(R)
[illustration of a computer]
Visit our Web site when you want to access your account, download a prospectus,
or find fund information.
REDUCED SALES CHARGE
[illustration of two coins]
Larger purchases may qualify for a reduced sales charge. To help reach a
breakpoint, you may -
- Add your present purchase to the value of all eligible household accounts
and/or
- Add your present purchase to purchases you intend to make over 13 months
Assets in money market funds generally do not apply when determining sales
charges.
RETIREMENT PLANS
[illustration of a sign post, pointing towards IRA, Simple, and 401(k)]
A wide range of fund choices for individual and company-sponsored retirement
plans.
AMERICAN FUNDSLINK(SM)
[illustration of a bank]
Link your fund account to your bank account for direct transfers between the
two and to purchase shares using American FundsLine or FundsLine OnLine.
AUTOMATIC TRANSACTIONS
[illustration of a calendar stating the date July 9]
Use this service when you want to purchase, sell and exchange shares on a
regular basis.
FLEXIBLE DIVIDEND OPTIONS
[illustration of a man]
Use your dividend and capital gain distributions to meet your changing needs.
You may -
- Invest dividends and capital gain distributions back into the fund
- Diversify by investing dividends and capital gain distributions into another
American Fund
- Take dividends in cash
- Have dividends paid directly to someone else
Because certain transactions have restrictions or tax consequences, please
consult your financial adviser before requesting changes.
WOULD YOU LIKE MORE INFORMATION?
Your financial adviser will be happy to explain these services in greater
detail, or you may contact American Funds Service Company.
To contact American Funds Service Company:
Shareholder Services Representative - 8 a.m. to 8 p.m. Eastern time -
800/421-0180
American FundsLine - 24-hour automated telephone system - 800/325-3590
FundsLine OnLine - Web site - www.americanfunds.com
By mail - Write to the service center nearest you.
(If you live outside the United States, please write to the Western service
center.)
<TABLE>
<CAPTION>
<S> <C>
Western West Central
[illustration of western [illustration of the west
portion of the United States] central portion of the United
States]
American Funds American Funds
Service Company Service Company
P.O. Box 2205 P.O. Box 659522
Brea, CA 9282-2205 San Antonio, TX 78265-9522
East Central Eastern
[illustration of the east [illustration of the eastern
central portion of the United portion of the United States
States of America] of America]
American Funds American Funds
Service Company Service Company
P.O. Box 6007 P.O. Box 2280
Indianapolis, IN 46206-6007 Norfolk, VA 23501-2280
</TABLE>
Please obtain the applicable prospectuses from your financial adviser or our
Web site and read them carefully before investing or sending money. American
Funds reserves the right to terminate or modify these services.
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
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, 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 (financial management
consulting firm)
Abner D. Goldstine, Los Angeles, California
President of the funds
Senior Vice President and Director,
Capital Research and Management Company
Paul G. Haaga, Jr., Los Angeles, California
Chairman of the Boards of the funds
Executive Vice President and Director,
Capital Research and Management Company
Richard G. Newman, Los Angeles, California
Chairman of the Board and Chief Executive Officer,
AECOM Technology Corporation (architectural engineering)
Frank M. Sanchez, Los Angeles, California
Chairman of the Board and Chief Executive Officer,
The Sanchez Family Corporation dba McDonald's Restaurants
(McDonald's licensee)
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 of the funds
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
Julie F. Williams, Los Angeles, California
Secretary of the funds
Vice President - Fund Business Management Group,
Capital Research and Management Company
Anthony W. Hynes, Jr., Brea, California
Treasurer of the funds
Vice President - Fund Business Management Group,
Capital Research and Management Company
Kimberly S. Verdick, Los Angeles, California
Assistant Secretary of the funds
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, California 90071-3405
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
Most funds in the American Funds family offer two share classes, Class A and
Class B. Each class has its own sales charge and expense structure, allowing
you to choose the one that best meets your situation. Class A shares are
subject to a 5.75% maximum up-front sales charge that declines for accounts of
$25,000 or more. (There is no sales charge on Class A shares of the money
market funds.) Class B shares, which are not available to certain
employer-sponsored retirement plans, have no up-front sales charge. However,
they are subject to additional expenses of approximately 0.75% a year during
the first eight years of ownership. If redeemed within six years, Class B
shares may also be subject to a contingent deferred sales charge (5% maximum)
that declines over time.
The Cash Management Trust of America is the only money market fund among the
American Funds that offers Class B shares. These shares may be acquired only by
exchanging from Class B shares of other American Funds (i.e., they may not be
purchased directly), and they do not offer check-writing privileges.
For more information, contact us at 800/421-0180 or www.americanfunds.com
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 December 31, 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 AGD/CG/4859
Lit. No. MMF-011-1100
