THE TAX-EXEMPT BOND FUND OF AMERICA
1995 ANNUAL REPORT
for the year ended August 31
[The American Funds Group(R)]
FUND OBJECTIVE
THE Tax-Exempt Bond Fund of America(R) seeks a high level of federally tax-free
current income, consistent with preservation of capital, through a diversified
portfolio of municipal bonds.
The fund invests primarily in state, city and public authority bonds that
are issued to provide funding for projects such as airport modernization,
pollution control, hospital expansion, electric power and highway improvements.
With the elimination of most tax deductions and shelters in recent years,
investing in municipal securities provides one of the few remaining ways to
earn tax-free income. The fund gives investors the opportunity to do so through
a well-diversified portfolio managed by proven professionals.
[Photo Caption]
ABOUT OUR COVER: The Tax-Exempt Bond Fund of America helps finance municipal
projects across the U.S., from highways and hospitals to new airport
facilities.
[End Photo Caption]
[Side Bar]
INVESTMENT HIGHLIGHTS
through 8/31/95
12-MONTH TOTAL RETURN +8.70%
(income plus capital changes,
with dividends reinvested)
TAX-FREE DISTRIBUTION RATE FOR AUGUST 5.39%
(income return only, reflecting
maximum sales charge)
TAXABLE EQUIVALENT DISTRIBUTION RATE 8.92%
(for August, assuming a 39.6% federal
tax rate)
SEC 30-DAY YIELD AS OF AUGUST 31 4.89%
(reflecting maximum sales charge)
For current yield information, please call toll-free: 800/421-0180.
[End Side Bar]
[Side Bar]
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are returns, with all distributions reinvested,
through September 30, 1995 (the most recent calendar quarter) assuming payment
of the 4.75% maximum sales charge at the beginning of the stated periods:
<TABLE>
<CAPTION>
Total Annual Average
Return Return Compound
<S> <C> <C>
TEN YEARS +127.67% +8.58%
FIVE YEARS +44.76% +7.68%
ONE YEAR +5.57% -
</TABLE>
Sales charges are lower for accounts of $25,000 or more. The fund's 30-day
yield as of September 30, 1995, calculated in accordance with the Securities
and Exchange Commission formula, was 4.85%. The fund's distribution rate as of
that date was 5.23%. The SEC yield reflects income earned by the fund, while
the distribution rate reflects dividends actually paid by the fund.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN
WILL VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. FUND SHARES ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
[End Side Bar]
FELLOW SHAREHOLDERS:
THE Tax-Exempt Bond Fund of America enjoyed a good year in fiscal 1995. Helped
by falling interest rates and a rebound in the bond market, the fund generated
a solid return while outpacing the majority of its peers.
The fund had a total return of 8.7% during the 12 months ended August 31,
1995 if you reinvested your dividends. For investors taking their dividends in
cash the value of their shares rose 2.5%. The fund ranked 17th of 209 general
municipal debt funds tracked by Lipper Analytical Services.* The average total
return of these funds was 7.3% for the year. The unmanaged Lehman Brothers
Municipal Bond Index, which measures the national investment-grade tax-exempt
market, gained 8.9% for the same period.
The Tax-Exempt Bond Fund of America paid dividends totaling 68 cents per
share during the 12 months. This amounted to a tax-free income return of 6.01%
for those who reinvested their dividends and 5.85% for investors taking
dividends in cash. Shareholders also will receive a taxable capital gain
distribution of at least 6 cents a share in November.
The fund's results are particularly gratifying because the year began
during one of the worst periods in bond market history. Interest rates had been
rising and bond prices falling steadily for almost eight months. Municipal bond
prices continued to fall during the first three months of the fiscal year as
investors, fearing even higher interest rates, continued to sell their
holdings.
Interest rates started to decline in November, and in December sentiment
in the market shifted dramatically and bond prices rallied.
During the latter stages of the market's decline, the fund had made
changes to the structure of its portfolio which put it in position to benefit
from the rally. As bond prices approached their lows, your fund's portfolio
counselors, believing interest rates would stop rising, shifted to bonds with
longer maturities. Normally, bonds with longer maturities react more to changes
in interest rates than bonds with shorter maturities and, thus, their prices
may be more volatile. When the market rallied, the shift to longer maturities
contributed to the fund's strong results.
Our move to somewhat lower rated bonds also helped results for the year.
As we have mentioned in previous reports, The Tax-Exempt Bond Fund of America
has slowly increased the portion of its portfolio invested in bonds rated BBB
which, while still investment-grade, typically offer yield advantages over
higher rated bonds. Because investing in these bonds requires extensive
research, the fund has added these securities to its
[Side Bar]
*For the 12 months ended September 30, 1995, The Tax-Exempt Bond Fund of
America ranked 49th of 213 funds tracked by Lipper; over five years, it ranked
32nd of 98; over 10 years, it ranked 28th of 54; and over its lifetime (since
October 3, 1979), it ranked 8th of 27 funds. Lipper rankings do not reflect the
effects of sales charges.
[End Side Bar]
portfolio at a deliberate pace. These holdings helped boost the fund's yield
above the yield on similar funds as the chart on the previous page shows. The
emphasis on in-depth research has enabled the fund to invest in lower rated
bonds offering the opportunity for solid returns with acceptable risks.
The rise in interest rates, which depressed bond prices for much of 1994,
was engineered by the Federal Reserve Board in a pre-emptive strike to keep
inflation and inflationary expectations in check. Higher rates indeed slowed
the economy, as designed. It is not clear now, however, whether economic growth
will remain sluggish or will accelerate strongly. In this uncertain
environment, we have shifted somewhat away from the more aggressive position we
had taken earlier this fiscal year and have adopted a slightly more cautious
approach.
Whichever direction interest rates go, our fundamental approach to
investing will not change. We will continue to rely on thorough research,
diversification and a long-term focus. We look forward to reporting to you
again in six months.
Cordially,
Paul G. Haaga, Jr.
Chairman of the Board
Abner D. Goldstine
President
October 12, 1995
[Side Bar]
HERE'S how a $10,000 investment in The Tax-Exempt Bond Fund of America grew
between October 3, 1979, when the fund began operations, and August 31, 1995,
the end of the fund's latest fiscal year.
As you can see, the $10,000 would have grown to $36,356 with all
distributions reinvested, an average increase of 8.5% a year.
AVERAGE ANNUAL COMPOUND RETURNS*
(for periods ended August 31, 1995)
10 Years +8.33%
Five Years +7.54%
One Year +3.55%
*Assumes reinvestment of all distributions and payment of the 4.75% maximum
sales charge at the beginning of the stated periods.
$38,144/3/
Lehman Bros. Municipal Bond Index
$36,356/1/ /2/
TEBFA with dividends reinvested
$35,137
Lipper General Municipal Bond Fund Average
$20,946
Consumer Price Index (inflation)
$10,000/1/
original investment
/1/ These figures unlike those shown earlier in this report, reflect payment of
the maximum sales charge of 4.75% on the $10,000 investment. Thus, the net
amount investment was $9,525. As outlined in the prospectus, the sales charge
is reduced for larger investments. There is no sales charge on dividends or
capital gain distributions that are reinvested in additional shares. No
adjustment has been made for income or capital gain taxes.
/2/ Includes reinvested dividends of $21,545 and reinvested capital gain
distributions of $771.
/3/ With interest compounded. Index started on 1/1/80.
/4/ For the period October 3, 1979 through August 31, 1980.
The indexes are unmanaged and do not reflect sales charges, commissions or
expenses. Past results are not predictive of future results.
[End Side Bar]
[Side Bar]
WHY TAX-FREE INVESTING IS WORTHWHILE
The table on the facing page is based on the current federal tax rates. To use
this table, find your estimated taxable income to determine your federal tax
rate. Then look at the right-hand column to see what you would have had to earn
to equal the fund's 5.39% tax-exempt distribution rate in August.
Because of tax increases in recent years, many high-income investors are
finding that their returns on taxable fixed-income issues have to be even
higher to match those currently offered by tax-exempt municipals. For instance,
a couple with a taxable income of $150,000 faces a federal tax rate of 36%. In
this bracket, the fund's current 5.39% distribution rate would be equivalent to
a return on a taxable issue of 8.42%. Investors in the highest bracket (39.6%)
would need a taxable distribution rate of 8.92% to match the fund's tax-exempt
distribution rate.
[End Side Bar]
YOUR FUND'S SERVICES: KEYS TO CONVENIENCE
FOR many shareholders in The Tax-Exempt Bond Fund of America, the advantages of
their investment are obvious at first glance: the opportunity for a relatively
steady stream of income free of federal income taxes. But like a fine
automobile that does more than simply transport you from one place to another,
your fund can be much more than just another investment vehicle offering
tax-free dividends. The Tax-Exempt Bond Fund of America can be the cornerstone
of a long-term investment plan or a key element in an active financial program.
In the next few pages we'll meet some shareholders, perhaps very much like
you, who see their investments in the fund as part of an overall financial
strategy. They're using their investments, and dividends, in a variety of ways
to help them meet long-term goals. They're also taking advantage of the
services the fund offers to make implementing their plan easy and convenient.
(Please be sure to see the description of pertinent services on page 10.)
[Side Bar]
<TABLE>
<CAPTION>
FEDERAL INCOME TAX RATES The fund's 5.39%
tax-exempt
Current distribution rate
Federal in August +
Your Taxable Income Tax Rate* is equivalent to a
taxable
distribution
Single Joint rate of:
<S> <C> <C> <C>
$0 -23,350 $0- 39,000 15.0% 6.34%
23,351- 56,550 39,001- 94,250 28.0 7.49
56,551 -117,950 94,251- 143,600 31.0 7.81
117,951-256,500 143,601- 256,500 36.0 8.42
Over 256,500 Over 256,500 39.6 8.92
</TABLE>
*The federal rates are marginal rates. They do not include an adjustment for
the loss of personal exemptions and the phase-out of itemized deductions that
are applicable to certain taxable income levels.
+The fund's distribution rate in the table is based on offering price and
therefore reflects the effects of the maximum sales charge on the initial
investment. It is not a projection of future results. Such results will reflect
interest rate levels, changes in the value of portfolio securities, the effects
of portfolio transactions, fund expenses and applicable sales charges.
[End Side Bar]
AUTOMATIC TRANSFERS MAKE LIFE LESS COMPLICATED
IN Monterey, California, the summer of 1995 will be remembered as one of the
best salmon-fishing summers in memory. Great schools of salmon came to the bay,
and fishermen had a field day. For sport fisherman Jack Hanley, an 80-year-old
semiretired insurance salesman, it was a season like none he'd ever seen.
Jack took a charter into the bay a couple of times a month and easily
brought home more than enough salmon for him and his wife, Muriel. Jack and
Muriel, who live just north of town, have enjoyed fishing since the early 1950s
and Muriel only recently gave up the hobby. Now she spends her time cultivating
her flower garden in their home a few blocks from the ocean.
They moved to the area in 1971; Jack, in addition to selling insurance,
operated a small publishing business called the Estate Research Institute. The
institute compiled statistics on "the high cost of dying - federal estate tax,
state taxes, attorney's fees . . . we recorded all that information," Jack
said. He sold the information to life insurance companies for use as a sales
tool.
Selling insurance, including life, health, disability and hospital plans,
was always the core of his business, though. It's a job he loves, Jack says.
"It's a business you have to constantly educate yourself in," he states.
During World War II, Jack worked in the Richmond, California shipyards,
building "liberty ships." Then, on July 4, 1952, he became a salesman for The
Equitable Life Assurance Society of the U.S. "I call it my independence day,"
he says with a grin.
In addition to his long career as a life insurance salesman - "I'm only
semiretired now," he says - Jack became a registered representative and still
sells mutual funds. Branching into mutual funds was a natural step, he said. "I
believed in it myself because I was investing."
In 1980, Jack sold the Estate Research Institute and looked for a good
place to invest the proceeds. He chose several funds in The American Funds
Group,(R) one of which was The Tax-Exempt Bond Fund of America. Jack and Muriel
regularly reinvested their dividends, benefiting from compounding. Recently,
however, Jack wanted to set up a college savings plan for their youngest
grandchild, Celeste, 12. She's the only one of their 11 grandchildren still
facing college. Jack and Muriel wanted to help her as they have their other
grandchildren.
Jack established an automatic transfer program, having $100 transferred
each month from The Tax-Exempt Bond Fund of America to a custodial account in a
growth-oriented mutual fund for Celeste. "I hope by the time she's 18 she'll
have a pretty good start toward college," he says.
He's also changed the way he handles the fund's dividends. "About a year
ago," Jack said, "I started transferring the dividends into a cash management
account to help pay my taxes [on other income]." Now when April 15th rolls
around, Jack and Muriel already have the money ready.
With the automatic transfers, Jack doesn't have to remember to switch
money from one fund to another each month. Instead, he can concentrate on the
latest fishing report.
[Photo Caption]
It was a great year for salmon fishing in Monterey Bay, California and Jack
Hanley landed his share. Jack has established automatic transfer programs with
his account in The Tax-Exempt Bond Fund of America and spends his time thinking
about fishing, not finances.
[End Photo Caption]
TAKING REGULAR DISTRIBUTIONS DURING RETIREMENT
WHEN Dick and Norma Steward began thinking about retirement a few years ago,
there was no doubt where they'd go. They had lived in Rockford, Illinois most
of their lives, but their son and daughter and their spouses and five
grandchildren all lived in Southern California.
In 1987 they moved to a community north of San Diego, near the kids and
grandkids. It wasn't just the family that prompted the move from Rockford,
though, Norma said with a laugh. "Dick hates winter."
A pharmacist, Dick owned five drugstores in the Rockford area with Norma's
two brothers. Norma was the buyer for the small gift shops in the stores.
It was Norma's brothers who initially convinced Dick to become a
pharmacist in the first place. Dick was working for an oil company in its
business department when he offered his brothers-in-law some business advice.
They jokingly told him he could only give advice if he was a pharmacist
himself.
Thinking about it, Dick decided it was time for a career move. He and
Norma sold their house and car, packed up their two children (then in
kindergarten and second grade) and moved to Madison, Wisconsin, where he
entered pharmacy school. He studied for three years straight, including
summers, and earned his pharmacist's license, before returning to Rockford to
practice.
When California beckoned, Dick decided to put his experience as a
pharmacist to work part time. After six years working for the Veterans
Administration, Dick retired completely last year.
Now he and Norma spend even more time with their grandchildren, who range
in age from five to 16, and they play a lot of golf, sometimes taking the
grandchildren with them.
Although Dick and Norma were deeply involved in running their pharmacy
business, they didn't start actively investing until they moved to California.
"I dabbled a little in the market, buying individual stocks, with what little
money we had after putting the kids through college," Dick said. But mostly he
followed a conservative savings plan.
They didn't make elaborate retirement plans either. "If you own your own
business, the pension is in the inventory," he said. When they moved to
California, most of their savings were in certificates of deposit and interest
rates were dropping. "I said, 'we can't live on this,' " Dick explained.
A neighbor introduced them to a broker and they began investing in mutual
funds, including The Tax-Exempt Bond Fund of America. "It was the best thing we
ever did," Dick said.
Now they're taking systematic monthly withdrawals from the fund to
supplement their retirement. "I've already paid taxes on that money [invested
in the fund]," Dick said. By taking withdrawals from The Tax-Exempt Bond Fund
of America now, the Stewards can postpone withdrawing from their IRAs - and
paying taxes on these withdrawals - until they reach the legal limit of age
70-1/2, when they must start withdrawing their IRA money.
When Norma and Dick were in the pharmacy business, they thought a
retirement filled with golf and sunshine was more a dream than a realistic
goal. Now, they're on the links at least three times a week and they haven't
shoveled snow in years.
[Photo Caption]
Dick and Norma Steward, long-time golfers, are spending even more time on the
links now that they've retired in Southern California. A systematic withdrawal
program from their account in The Tax-Exempt Bond Fund of America plays a key
role in their retirement income.
[End Photo Caption]
REINVESTING FOR RETIREMENT AND ESTATE PLANNING
IN 1952, while on a ski trip to Colorado, a young woman named Ellen was
struggling with her bindings. A man behind her in the lift line offered to
help. It was Ted Baldwin, a Navy pilot on a weekend leave. They skied together
that day and went to dinner that night, Ellen remembers with a smile. They were
married a few months later.
Today, Ellen still travels every winter to Colorado from her home in
Nebraska to ski. Often, her son, daughter and six grandchildren join her. She
loves Colorado and the downhill skiing there. But there's no question that
Nebraska, more than any other place, is very special to Ellen.
Not long after she and Ted were married they moved to Kearney, where Ted's
father had an oil and air filter business, Baldwin Filters. They arrived in the
midst of "the hottest, driest, windiest summer they'd ever had," she recalled.
She wasn't even sure she wanted to stay. They chose to stick it out for six
months and then decide whether to make it their permanent home. Now, after
decades in Kearney, she'd never move away from Nebraska.
"It's not just Kearney, it's all of Nebraska. The people are friendly,"
she says.
Her son, Michael, agrees. "Kearney's a great place to raise a family," he
said. After earning a law degree at the University of Nebraska in Lincoln, he
returned to his native Kearney to practice all types of law, including criminal
defense for the public defender's office.
"I tell people I'm too young to be a 'small-town lawyer,' " joked Michael,
who is 41.
The Baldwins aren't merely idle admirers of Nebraska's bounty. They're
proud citizens who work hard and contribute to the community. A few years ago,
the University of Nebraska wanted to open an art museum in Kearney and the
Baldwins contributed. The museum was opened and Ellen still serves on its Board
of Directors. Her work with the museum sparked an interest in art and Ellen has
begun her own collection of Nebraska artists.
The family also founded the Theodore G. Baldwin Foundation, which
contributes to various charitable causes in Nebraska. The foundation was named
after Ellen's husband, who died in 1972.
Michael and Ellen are both shareholders in The Tax-Exempt Bond Fund of
America and both are regularly reinvesting their dividends. For Ellen, the fund
plays a key role in her estate planning. Someday it will provide an inheritance
for her children and grandchildren, she says.
For Michael, the fund is an important part of his long-term investment
plans which also include investments in growth-oriented mutual funds. He's
reinvesting his dividends so the account can benefit from the effects of
compounding. "When I retire I'll draw on the principal to do whatever I want to
do," he says.
When he retires, he'll probably play golf and travel, Michael says. But,
just like his mother, he'll always come home to Nebraska.
[Photo Caption]
When the University of Nebraska wanted to build a museum for Nebraska art,
Ellen Baldwin helped with fund-raising. She and her son, Michael, are
philanthropists and community boosters. For both Ellen and Michael, their
accounts in The Tax-Exempt Bond of America play a key role in their long-term
financial planning.
[End Photo Caption]
INVESTORS IN THE TAX-EXEMPT BOND FUND OF AMERICA CAN TAKE ADVANTAGE OF AN ARRAY
OF FREE SERVICES.
SERVICES THAT MAKE MANAGING YOUR FINANCES MORE CONVENIENT AND FLEXIBLE
DIVIDENDS
DIVIDENDS IN CASH: If you look to The Tax-Exempt Bond Fund of America mainly
for income, you have a convenient option. The fund will mail dividend checks
directly to your address of record or you may have dividends electronically
deposited into a bank account.
CROSS-REINVESTMENT TO ANOTHER FUND: Dividends and capital gains from the fund
can be reinvested in another American Funds mutual fund. There is no charge for
cross-reinvestment if your account in The Tax-Exempt Bond Fund of America has a
balance of at least $5,000 or you meet the minimum initial investment
requirement for the receiving fund.
ALTERNATE PAYEE: Dividends can be automatically paid to a third party, such as
a family trust.
REDUCING YOUR SALES CHARGE
QUANTITY DISCOUNTS: There are discounts on large investments, whether in The
Tax-Exempt Bond Fund of America or a combination of funds in The American Funds
Group.
CONCURRENT PURCHASES: By purchasing shares in more than one American Fund
simultaneously, you may qualify for a quantity discount.
RIGHT OF ACCUMULATION: You can add the value of your present shares in The
Tax-Exempt Bond Fund of America or any of the funds in The American Funds Group
(except money market funds) to the amount of any new purchase to qualify for a
quantity discount on your new investment.
STATEMENT OF INTENTION: You can, without obligation, sign a Statement of
Intention that allows you to combine the purchases you intend to make over a
13-month period so as to take immediate advantage of the maximum quantity
discount available.
(Shares of money market funds purchased directly cannot be used to reduce your
sales charge. Additionally, certain accounts may not be eligible to be grouped.
See the fund's prospectus or your investment professional for more details.)
EXCHANGES
AUTOMATIC EXCHANGE PLAN: You can automatically exchange $50 or more between The
Tax-Exempt Bond Fund of America and any other American Funds account on a
regular basis at no cost. (Certain minimum investment requirements apply.)
Please remember that fund exchanges constitute a sale and purchase for tax
purposes.*
ADDING TO YOUR ACCOUNT
BANK ACCOUNT TRANSFERS: You can make regular mutual fund investments by
authorizing American Funds Service Company to deduct a specified amount from
your bank account each month or quarter.
DIVIDENDS AUTOMATICALLY REINVESTED: You may choose to have your dividends and
capital gain distributions reinvested automatically in the fund. Dividends are
reinvested with no sales charge.
REDEEMING SHARES
SYSTEMATIC WITHDRAWALS: You may make automatic withdrawals of $50 or more up to
12 times a year if you have an account worth at least $10,000, or up to four
times a year if you have an account worth at least $5,000. You can request that
checks be sent to you or someone else, perhaps a family member, charitable
organization or family trust.
BY PHONE: You can redeem shares by phone, up to a daily maximum of $10,000.
Just call 800/421-0180, extension 1, or call American FundsLine(R) at
800/325-3590.
FOR MORE COMPLETE INFORMATION ABOUT THESE AND OTHER SERVICES, PLEASE OBTAIN A
PROSPECTUS FROM YOUR SECURITIES DEALER OR FINANCIAL PLANNER OR PHONE THE FUND'S
TRANSFER AGENT, AMERICAN FUNDS SERVICE COMPANY, AT 800/421-0180. PLEASE READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THESE SERVICES ARE
SUBJECT TO CHANGE OR TERMINATION.
* Of course, such a plan cannot ensure a profit or protect against loss in
declining markets.
THE TAX-EXEMPT BOND FUND OF AMERICA
Investment Portfolio, August 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
GEOGRAPHIC BREAKDOWN
California -- 12.60%
New York -- 11.61%
Illinois -- 9.04%
Washington -- 7.66%
Pennsylvania -- 6.01%
Michigan -- 4.55%
Other States -- 43.83%
Cash & Short-Term Securities -- 4.70%
QUALITY RATING
Aaa/AAA -- 29%
Aa/AA -- 18%
A/A -- 19%
Baa/BBB -- 26%
Below investment grade -- 8%
Principal Market
Amount Value
(000) (000)
TAX-EXEMPT SECURITIES MATURING IN MORE THAN
ONE YEAR - 95.30%
ALABAMA - 0.18%
The Industrial Development Board of the City of
Mobile, Solid Waste Revenue Refunding Bonds (Mobile
Energy Services Company, L.L.C. Projects), Series
1995, 6.95% 2020 $2,500 $2,579
ALASKA - 0.97%
Alaska Housing Finance Corporation:
Insured Mortgage Program Refunding Bonds, 1990
First Series, 7.80% 2030 5,900 6,219
Collateralized Bonds (Veterans Mortgage
Program), Series 1992A-1, 6.75% 2032 4,800 4,914
City of Valdez, Marine Terminal Revenue Refunding
Bonds (BP Pipelines (Alaska) Inc. Project), Series
1993 B, 5.50% 2028 3,000 2,722
ARIZONA - 0.22%
State Transportation Board, Subordinated Highway
Revenue Bonds, Series 1992B, 6.50% 2008
(Prerefunded 2002) 1,850 2,078
Salt River Project Agricultural Improvement and
Power District, Electric System Revenue Bonds,
Refunding Series A, 7.875% 2028 (Prerefunded 1998) 1,000 1,102
CALIFORNIA - 12.60%
General Obligation Bonds, 6.75% 2002 5,000 5,547
Various Purpose General Obligation Bonds,
6.75% 2006 1,000 1,122
California Health Facilities Financing Authority:
Downey Community Hospital, Series 1993:
5.00% 2001 1,000 994
5.75% 2015 4,990 4,709
Kaiser Permanente Medical Care Program, Semiannual
Tender Revenue Bonds, 1985 Tender Bonds, 5.55% 2025 5,000 4,528
Public Works Board, Lease Revenue Bonds:
(California Community Colleges), 1994 Series B
(Various Community College Projects):
6.75% 2005 2,505 2,742
7.00% 2007 1,315 1,450
Department of Corrections:
(Various State Prisons), 1993 Series A, AMBAC
Insured, 5.25% 2005 3,800 3,897
(California State Prison-Lassen County,
Susanville), 1993 Series D, 5.20% 2007 3,760 3,641
Statewide Communities Development Authority:
Children's Hospital of Los Angeles, MBIA Insured,
6.00% 2008 3,415 3,624
St. Joseph Health System Obligated Group,
Certificates of Participation:
6.50% 2004 1,540 1,659
5.50% 2014 4,000 3,733
5.50% 2023 2,700 2,451
Castaic Lake Water Agency Financing Corporation,
Refunding Revenue Certificates of Participation
(Water System Improvement Projects), Series 1994A,
MBIA Insured:
7.25% 2010 1,245 1,472
7.00% 2011 2,400 2,756
Central Valley Financing Authority, Cogeneration
Project Revenue Bonds, (Carson Ice-Gen Project)
Series 1993, 6.10% 2013 1,000 973
Culver City Redevelopment Financing Authority, 1993
Tax Allocation Refunding Revenue Bonds, AMBAC
Insured, 5.00% 2023 6,135 5,313
City of Los Angeles:
State Building Authority Lease Revenue Bonds,
Series 1988 A, 7.20% 2004 3,250 3,443
State Building Authority Lease Revenue Refunding
Bonds, (State of California Department of General
Services Lease), 1993 Series A:
5.375% 2006 3,800 3,720
5.50% 2007 7,295 7,177
Convention and Exhibition Center Authority,
Certificates of Participation:
7.375% 2018 (Prerefunded 1999) 1,000 1,128
7.00% 2020 (Prerefunded 1999) 2,750 3,066
Regional Airports Improvement Corporation,
Facilities Lease Refunding Revenue Bonds,
Issue of 1992, United Air Lines, Inc. (Los
Angeles International Airport), 6.875% 2012 2,000 2,034
Department of Water and Power, Electric Revenue
Bonds, 7.10% 2031 (Prerefunded 2001) 3,000 3,371
Foothill/Eastern Transportation Corridor Agency
Toll Road Revenue Bonds, Series 1995A (Fixed
Rate) Senior Lien Current Interest Bonds,
6.00% 2034 5,000 4,576
La Quinta Redevelopment Agency Project (Tax
Allocation Refunding Bonds), Series 1994, MBIA
Insured, 7.30% 2009 1,250 1,484
County of Los Angeles, Certificates of
Participation (Marina Del Rey), Series A:
6.25% 2003 5,500 5,419
6.50% 2008 4,750 4,760
County of Los Angeles, Pension Obligation
Certificates, Series A, 6.875% 2006 10,925 11,285
The Metropolitan Water District of Southern
California, Waterworks General Obligation Refunding
Bonds, 1993 Series A1, 5.50% 2010 3,000 2,991
Northern California Power Agency, Geothermal
Project #3, Special Revenue Bonds, 1993 Refunding
Series A, 5.60% 2006 3,000 3,022
Orange County Local Transportation Authority,
(Orange County, California) Measure M Sales Tax
Revenue Bonds (Limited Tax Bonds):
Second Senior Bonds, Series 1992, FGIC Insured,
5.90% 2006 1,200 1,244
First Senior Bonds, MBIA Insured, 6.00% 2009 2,000 2,046
County of Orange (Aliso Viejo), Special Tax Bonds
of Community Facilities District No. 88-1,
Series A of 1992:
6.70% 2002 (Escrowed to maturity) 1,740 1,941
7.15% 2006 (Prerefunded 2002) 2,000 2,340
7.35% 2018 (Prerefunded 2002) 10,000 11,819
South Orange County, Public Financing Authority
Special Tax Revenue Bonds, 1994 Series B (Junior
Lien Bonds):
6.65% 2003 1,000 1,018
6.75% 2004 2,385 2,427
Pleasanton Joint Powers Financing Authority
Reassessment Revenue Bonds, 1993 Series A:
5.40% 1999 4,085 4,111
5.70% 2001 500 504
6.15% 2012 7,000 6,956
Riverside County Transportation Commission, Sales
Tax Revenue Bonds (Limited Tax Bonds), 1991
Series A, 6.50% 2009 3,600 3,757
City of Los Angeles, Wastewater System Revenue
Bonds, Refunding Series 1993 D, FGIC Insured,
5.20% 2021 2,500 2,240
Sacramento City Financing Authority, 1991 Revenue
Bonds, 6.80% 2020 (Prerefunded 2001) 5,000 5,712
Sacramento Cogeneration Authority, Cogeneration
Project Revenue Bonds, (Procter & Gamble Project),
1995 Series, 6.375% 2010 1,000 1,014
San Francisco Bay Area Rapid Transit District,
Sales Tax Revenue Refunding Bonds, Series 1990,
AMBAC Insured, 6.75% 2009 3,250 3,497
Redevelopment Agency of the City and County of
San Francisco Refunding Lease Revenue Bonds,
Series 1991 (George R. Moscone Convention
Center), 5.50% 2018 6,000 5,396
San Joaquin Hills Transportation Corridor Agency
(Orange County), Senior Lien Toll Road Revenue
Bonds, 0% 2000 4,525 3,404
The Regents of the University of California
(Various University of California Projects),1993:
Series A:
5.40% 2008 4,000 3,871
5.50% 2021 3,500 3,157
Series B, 5.375% 2009 2,000 1,905
The Regents of the University of California Revenue
Bonds, Series A, MBIA Insured, 6.90% 2015
(Prerefunded 1997) 2,750 2,963
COLORADO - 3.51%
Arapahoe County, Capital Improvement Trust Fund
Highway Revenue Bonds (E-470 Project):
6.90% 2015 5,750 5,904
6.95% 2020 20,500 21,066
Colorado Housing And Finance Authority,
Multi-Family Housing Insured Mortgage Revenue Bonds, 1982
Series A, 9.00% 2025 1,780 1,780
City and County of Denver, Airport System Revenue
Bonds, Series 1992A, 7.25% 2025 19,800 21,210
DISTRICT OF COLUMBIA - 3.13%
District of Columbia (Washington, D.C.), General
Obligation Bonds:
Series 1990 A, AMBAC Insured, 7.25% 2005
(Prerefunded 2000) 2,500 2,838
Series 1993 C, 5.25% 2000 4,000 3,915
Series 1993 A, 5.75% 2003 3,000 2,916
Series 1992 B, MBIA Insured, 6.125% 2003 1,750 1,851
AMBAC Insured, 5.20% 2004 1,500 1,493
Series 1993 A, AMBAC Insured, 5.875% 2005 7,000 7,249
Series A-1, MBIA Insured, 4.95% 2005 1,250 1,205
Series 1993 C, 5.75% 2005 2,500 2,365
Series B-2, FSA Insured, 5.50% 2007 8,725 8,628
Series B-1, AMBAC Insured, 5.50% 2009 8,500 8,201
Hospital Revenue Refunding Bonds
(Medlantic Healthcare Group, Inc. Issue):
Series 1992 A, 7.00% 2005 2,000 2,060
Series 1993 A, MBIA Insured, 5.25% 2012 2,000 1,840
FLORIDA - 1.03%
Broward County, Resource Recovery Revenue Bonds,
Series 1984: North Project,
North Project, 7.95% 2008 4,830 5,412
South Project, 7.95% 2008 1,240 1,389
The Crossing at Fleming Island Community Development
District (Clay County), Special Assessment Bonds,
Series 1995, 8.25% 2016 1,125 1,162
Mid-Bay Bridge Authority Revenue Refunding Bonds:
Series 1993A, 8.50% 2022 4,000 4,647
Series 1993D, 6.125% 2022 2,150 2,045
GEORGIA - 1.57%
General Obligation Bonds, 1995 D, 6.75% 2001 5,410 6,173
City of Atlanta, Airport Facilities Revenue
Refunding Bonds, Series 1994A, AMBAC Insured:
6.50% 2008 1,500 1,663
6.50% 2009 1,000 1,102
City of Atlanta, Special Purpose Facilities
Revenue Refunding Bonds (Delta Air Lines, Inc.
Project), Series 1989 A, 7.50% 2019 4,500 4,727
Fulco Hospital Authority Revenue Anticipation
Certificates (St. Joseph's Hospital of Atlanta,
Inc.), Series 1994, 4.80% 2001 2,305 2,219
Fulco Hospital Authority Revenue Anticipation
Certificates (Georgia Baptist Health Care System
Project), Series 1992:
A 6.40% 2007 1,000 1,016
A 6.375% 2022 1,595 1,504
B 6.375% 2022 910 856
Development Authority of Fulton County, Special
Facilities Revenue Bonds (Delta Air Lines, Inc.
Project), Series 1992, 6.95% 2012 3,000 3,104
HAWAII - 0.07%
State General Obligation Refunding Bonds of 1993,
Series C, 5.125% 2009 1,000 973
ILLINOIS - 9.04%
State of Illinois, Civic Center Bonds (Special State
Obligation Bonds), Series 1991, AMBAC Insured, 6.25%
2020 2,000 2,098
Build Illinois Bonds (Sales Tax Revenue Bonds),
Series O, 6.00% 2002 1,000 1,071
Health Facilities Authority:
Revenue Refunding Bonds (The Carle Foundation),
FGIC Insured, Series 1989 A, 6.00% 2015 3,000 3,002
Revenue Bonds (Rush-Presbyterian St. Luke's Medical
Center Obligated Group), MBIA Insured, Series 1993,
5.25% 2013 1,875 1,711
Revenue Bonds, Series 1992 (Edward Hospital
Association Project), 7.00% 2022 1,000 1,043
Refunding Bonds, Series 1993 A (Edward Hospital
Project), 6.00% 2019 1,435 1,349
Revenue and Revenue Refunding Bonds
(Evangelical Hospitals Corporation):
Series A, 6.25% 2022 2,000 1,977
Series C, 6.25% 2022 4,000 3,969
Revenue Bonds, Series 1994 A (Northwestern Memorial
Hospital), 6.00% 2024 13,000 12,737
Revenue Bonds, Series 1993 (OSF Healthcare System):
5.75% 2007 5,760 5,813
6.00% 2013 5,000 4,907
6.00% 2023 10,000 9,593
Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois
General Obligation Bonds:
Series 1994D, 7.75% 2019 4,500 5,572
Series 1990A 7.20% 2020 1,000 1,173
City of Chicago:
Chicago-O'Hare International Airport:
General Airport Second Lien Revenue Refunding Bonds,
1993 Series C, MBIA Insured, 5.00% 2018 10,000 8,800
Special Facilities Revenue Bonds for United
Airlines:
1984 Series C, 8.20% 2018 1,230 1,340
1988 Series B, 8.85% 2018 1,940 2,205
Special Facilities Revenue Refunding Bonds
(Delta Airlines, Inc. Terminal), 6.45% 2018 7,435 7,399
Special Facilities Revenue Refunding Bonds,
Series 1994 (American Airlines, Inc. Project),
8.20% 2024 2,750 3,145
Skyway Toll Bridge Refunding Revenue Bonds,
Series 1994:
6.50% 2010 13,750 13,934
6.75% 2014 6,500 6,625
6.75% 2017 1,925 1,962
Water Revenue Bonds, Refunding
Series 1993, FGIC Insured, 6.50% 2011 4,345 4,767
Public Building Commission of Chicago, Building
Revenue Bonds (Board of Education of the City
of Chicago), MBIA Insured,
Series A of 1993, 5.75% 2018 8,000 7,770
Metropolitan Pier and Exposition Authority,
McCormick Place Expansion Project Bonds,
Current Interest Bonds, Series 1992 A,
6.50% 2027 4,000 4,060
Metropolitan Water Reclamation District of Greater
Chicago, Series B:
Capital Improvement Bonds, 5.25% 2004 5,000 5,159
Refunding Bonds, 5.30% 2005 5,325 5,477
INDIANA - 2.70%
Housing Finance Authority, Single Family Mortgage
Refunding Revenue Bonds, 1992 Series A, 6.75% 2010 1,660 1,735
Transportation Finance Authority, Airport
Facilities Lease Revenue Bonds, Series A:
6.50% 2007 7,000 7,446
6.75% 2011 2,400 2,513
City of East Chicago, Pollution Control Refunding
Revenue Bonds:
(Inland Steel Company Project No. 10), Series 1993,
6.80% 2013 6,000 6,093
(Inland Steel Company Project No. 11), Series 1994,
7.125% 2007 3,000 3,124
Hospital Authority of the City of Fort Wayne,
Revenue Bonds (Parkview Memorial Hospital, Inc.
Project), Series 1992:
6.375% 2013 6,000 6,060
6.40% 2022 8,000 8,049
Indianapolis Local Public Improvement Bond Bank,
Series 1992 D Bonds, 6.60% 2007 1,960 2,088
City of Sullivan, Pollution Control Revenue
Refunding Bonds (Indiana Michigan Power Company
Project), Series C, 5.95% 2009 1,300 1,281
KENTUCKY - 0.21%
The Turnpike Authority of Kentucky, Resource
Recovery Road Revenue Refunding Bonds, 1981
Series A, 13.125% 2009 (Prerefunded 1997) 390 453
Kenton County Airport Board, Special Facilities
Revenue Bonds (Delta Air Lines, Inc. Project):
7.80% 2015 1,000 1,063
1992 Series B, 7.25% 2022 1,350 1,420
LOUISIANA - 3.91%
Industrial Development Board of the Parish of
Calcasieu, Inc. (Louisiana) Pollution Control
Revenue Refunding Bonds (Gulf States Utilities
Company Project), Series 1992, 6.75% 2012 4,000 4,026
Offshore Terminal Authority, Deepwater Port
Refunding Revenue Bonds (LOOP INC. Project):
First Stage Series B, 6.25% 2004 2,200 2,364
First Stage Series E, 7.45% 2004 1,000 1,123
Lake Charles Harbor and Terminal District, Port
Facilities Revenue Refunding Bonds (Trunkline
LNG Company Project), Series 1992, 7.75% 2022 28,000 31,258
Orleans Levee District, Levee Improvement Fixed Rate
Refunding Bonds, Series 1987 A, 8.25% 2014 10,420 10,759
Parish of St. Charles, Adjustable/Fixed Rate
Pollution Control Revenue Bonds (Louisiana
Power & Light Company Project),
Series 1984, 8.25% 2014 5,490 6,121
MAINE - 0.55%
Maine State Housing Authority, Mortgage Purchase
Bonds,1994 Series C-1, 5.90% 2015 4,135 4,199
Town of Skowhegan, Maine, Pollution Control Revenue
Refunding Bonds, Series 1993 (Scott Paper Company
Project), 5.90% 2013 3,710 3,625
MARYLAND - 1.65%
State General Obligation Bonds, State
and Local Facilities Loan of 1993, Second Series
(Capital Improvement and Refunding Bonds),
5.00% 2004 1,700 1,740
Community Development Administration, Department
of Housing and Community Development, Single
Family Program Bonds, 1990 First Series,
7.60% 2017 5,920 6,316
Health and Higher Educational Facilities Authority:
Revenue Bonds, Howard County General Hospital
Issue, Series 1993:
5.50% 2013 2,300 2,041
5.50% 2021 6,225 5,219
Project and Refunding Revenue Bonds, Peninsula
Regional Medical Center Issue, Series 1993,
5.25% 2012 1,000 930
John Hopkins Hospital Issue, Revenue Refunding
Bonds, Series 1993, 5.00% 2023 1,000 862
Calvert County, Maryland Economic Development
Revenue Bonds (Asbury-Solomons Island Facility),
Series 1995, 8.625% 2024 2,500 2,680
Prince George's County, Hospital Revenue Bonds:
5.30% 2024 3,305 2,810
(Dimensions Health Corporation Issue) Series
1992, 7.25% 2017 (Prerefunded 2002) 750 875
MASSACHUSETTS - 3.25%
General Obligation Bonds Consolidated Loan of
1989, Series D, MBIA Insured, 7.00% 2009
(Prerefunded 1999) 1,000 1,118
Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Dana-Farger Cancer
Institute Issue, Series G-1, 5.50% 2027 2,500 2,194
Health and Educational Facilities Authority,
Revenue Bonds:
Brigham and Women's Hospital Issue, Series D,
6.75% 2024 7,000 7,275
New England Deaconess Hospital Issue, Series C,
7.20% 2022 2,000 2,111
Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1994 Series A
Refunding Bonds, 7.00% 2007 10,110 11,632
City of Boston, Massachusetts Revenue Refunding
Bonds, Boston City Hospital (FHA-Insured Mortgate):
7.625% 2021 980 1,123
5.75% 2023 8,000 7,528
Massachusetts Water Resources Authority:
General Revenue Bonds, 1990 Series A, 7.50% 2009
(Prerefunded 2000) 9,500 10,848
General Revenue Refunding Bonds, 1993 Series B,
5.25% 2009 2,500 2,439
MICHIGAN - 4.55%
The Economic Development Corporation of Dickinson
County (Michigan), Series 1969, Solid Waste
Disposal Refunding Revenue Bonds, Champion
International Corp. Project, 6.55% 2007 3,000 3,122
Job Development Authority, Pollution
Control Revenue Bonds (Chrysler Corporation
Project), Series 1984, 5.70% 1999 7,000 7,182
State Housing Development Authority, Rental Housing
Revenue Bonds, 1994 Series A, 6.20% 2003 600 627
State Hospital Finance Authority, Hospital Revenue
Refunding Bonds (McLaren Obligated Group),
Series 1993A, 5.375% 2013 2,985 2,728
Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (The Detroit Medical
Center Obligated Group), Series 1993 B, 5.50% 2023 2,000 1,762
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Genesys Health System
Obligated Group), Series 1995A:
7.10% 2002 1,955 2,069
8.00% 2005 8,880 9,819
8.10% 2013 5,000 5,375
8.125% 2021 4,500 4,847
7.50% 2027 3,925 4,019
City of Detroit, Michigan, General Obligation
Refunding Bonds (Unlimited Tax), Series 1995-B:
6.25% 2001 6,085 6,310
6.75% 2003 2,000 2,126
7.00% 2004 2,500 2,695
6.25% 2005 3,625 3,706
6.25% 2010 1,250 1,238
City of Royal Oak Hospital Financing Authority,
Hospital Revenue Refunding Bonds (William Beaumont
Hospital), Series 1993 G, 5.25% 2019 8,000 7,117
MINNESOTA - 0.54%
Housing and Redevelopment Authority of the City
of Saint Paul, Hospital Facility Revenue
Bonds (Healtheast Project), Series 1987-B:
9.75% 2017 (Prerefunded 1997) 2,770 3,098
9.75% 2017 (Prerefunded 1997) 4,095 4,580
MISSISSIPPI - 2.43%
Claiborne County Adjustable/Fixed Rate Pollution
Control Revenue Bonds (Middle South Energy, Inc.
Project):
Series A, 9.50% 2013 1,550 1,801
Series B, 8.25% 2014 4,750 5,204
Series C, 9.875% 2014 23,535 27,629
NEW HAMPSHIRE - 0.25%
New Hampshire Higher Educational and Health
Facilities Authority Revenue Bonds, Dartmouth
College Issue, Series 1993, 5.375% 2023 1,000 931
Business Finance Authority, Pollution Control
Refunding Revenue Bonds (The United Illuminating
Company Project), Series A 1993, 5.875% 2033 2,985 2,685
NEW JERSEY - 0.90%
New Jersey Economic Development Authority, First
Mortgage Revenue Fixed Rate Bonds (Fellowship
Village Project), Series 1995A, 9.25% 2025 7,000 7,454
New Jersey Housing and Mortgage Finance Agency,
Section 8 Bonds, 1991 Series A:
6.80% 2005 2,570 2,754
6.85% 2006 2,500 2,679
NEW MEXICO - 0.27%
Mortgage Finance Authority, Single Family Mortgage
Purchase Refunding Senior Bonds, 1992 Series
A-1, 6.85% 2010 3,660 3,865
NEW YORK - 11.61%
Dormitory Authority of the State of New York:
State University Educational Facilities Revenue
Refunding Bonds:
Series 1990 B, 7.50% 2011 1,720 1,989
Series 1990 A, 7.50% 2013 4,500 5,246
Series 1990 B, 7.00% 2016 1,000 1,064
City University System, Consolidated Second
General Resolution Revenue Bonds:
Series 1990 F, FGIC Insured, 7.50% 2020
(Prerefunded 2000) 7,100 8,184
Series G, 5.00% 2002 2,000 1,957
Environmental Facilities Corporation, State Water
Pollution Control Revolving Fund Revenue Bonds
(New York City Municipal Water Finance Authority
Project):
Series 1994 A, 5.75% 2009 8,380 8,604
Series 1991 E, 6.875% 2010 1,500 1,636
Series 1990 A, 7.50% 2012 500 559
Local Government Assistance Corporation:
Series 1991 A Bonds, 7.00% 2016 (Prerefunded 2001) 7,000 7,991
Series 1991 B Bonds, 7.50% 2020 (Prerefunded 2001) 6,925 8,074
Series 1991 C Bonds, 0% 2005 5,000 3,066
Series 1991 D Bonds, 7.00% 2011 2,000 2,212
Series 1991 D Bonds, 7.00% 2018 (Prerefunded 2001)/2/ 8,650 9,988
Series 1991 D Bonds, 6.75% 2021 (Prerefunded 2002) 1,350 1,541
Series 1992 C Bonds, 5.50% 2022 1,000 931
New York State Medical Care Facilities Finance
Agency, FHA-Insured Mortgage Project Revenue Bonds,
1995 Series D, AMBAC Insured, 5.75% 2025 1,000 971
State Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds:
1991 Series A, 7.50% 2021 (Prerefunded 2001) 3,645 4,239
1993 Series F, Refunding, 4.60% 1999 1,000 993
1994 Series A, 5.10% 2003 1,720 1,673
Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds:
Series 1993 A, Refunding Series, 5.30% 2005 2,800 2,684
Series 2, 6.50% 2021 (Prerefunded 2001) 3,700 4,064
Series 1993, 5.25% 2003 4,500 4,424
Metropolitan Transit Authority, Transit Facilities
Service Contract Bonds, Series O and P,
5.375% 2002 4,000 4,049
Battery Park City Authority, Revenue Refunding
Bonds, Series 1993 A:
5.00% 2008 2,250 2,129
5.25% 2017 7,500 6,730
4.75% 2019 18,000 14,849
The City of New York, General Obligation Bonds,
Fiscal 1995 Series F:
6.375% 2006 3,000 3,103
6.60% 2010 2,000 2,039
6.625% 2025 1,500 1,522
City of New York General Obligation Bonds:
Fiscal 1992 Series H, 6.875% 2002 1,900 2,030
Fiscal 1993 Series A, 6.25% 2003 4,200 4,305
Fiscal 1991 Series B, 8.25% 2006 1,500 1,766
Fiscal 1994 Series C, 5.50% 2007 4,000 3,826
Fiscal 1995 Series E, MBIA Insured, 6.20% 2008 3,000 3,271
New York City, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds:
Fiscal 1989 Series B, FGIC Insured,
7.625% 2017 (Prerefunded 1998) 3,000 3,325
Fiscal 1991 Series C, 7.75% 2020 (Prerefunded 2001) 5,000 5,897
Fiscal 1994 Series B, 4.875% 2002 3,000 3,011
Fiscal 1994 Series B, 5.50% 2019 2,000 1,853
New York City Transit Authority, Transit
Facilities Revenue Bonds (Livingston Plaza
Project), Series 1990, FSA Insured, 7.50% 2020
(Prerefunded 2000) 4,000 4,560
Triborough Bridge and Tunnel Authority, General
Purpose and Revenue Bonds:
Series K, 8.25% 2017 (Prerefunded 1997) 1,000 1,076
Series S, 7.00% 2021 (Prerefunded 2001) 11,400 12,913
Series Y, 6.00% 2012 1,000 1,035
NORTH CAROLINA - 1.91%
Eastern Municipal Power Agency, Power System Revenue
Bonds:
Refunding Series 1993 C, 5.00% 2002 1,000 968
Refunding Series 1993 C, 5.25% 2004 2,000 1,909
Refunding Series 1993 C, 5.50% 2007 5,250 5,086
1993 B, 6.00% 2006 3,000 2,995
1993 B, 7.00% 2008 10,045 10,729
1993 B, 7.25% 2007 5,000 5,452
OHIO - 0.12%
County of Franklin, Hospital Facilities Revenue
Refunding and Improvement Bonds (Doctors Hospital
Project), 5.60% 2006 1,750 1,772
OKLAHOMA - 0.19%
Grand River Dam Authority, Revenue Bonds, Refunding
Series 1995, AMBAC Insured, 6.25% 2011 2,500 2,720
PENNSYLVANIA - 6.01%
Pennsylvania Convention Center Authority Refunding
Revenue Bonds, 1994 Series A, 6.25% 2004 10,000 10,390
Higher Educational Facilities Authority, Revenue
Bonds (Thomas Jefferson University), 1992
Series A, 6.625% 2009 1,250 1,332
Housing Finance Authority, Single Family Mortgage
Revenue Bonds:
Series 1990-29A, 7.375% 2016 3,575 3,842
Series 1992-33, 6.85% 2009 1,000 1,078
The Pennsylvania Industrial Development Authority,
Economic Development Revenue Bonds, Series 1994,
AMBAC Insured, 7.00% 2007 1,750 2,029
The Hospitals and Higher Education Facilities
Authority of Philadelphia:
Hospital Revenue Bonds (The Children's Hospital of
Philadelphia Project):
Series A of 1992, 6.50% 2009 (Prerefunded 2002) 4,500 5,040
Series A of 1992, 6.50% 2021 (Prerefunded 2002) 3,000 3,360
Series A of 1993, 5.00% 2021 10,500 9,041
Frankford Hospital, Series A:
6.00% 2014 1,805 1,651
6.00% 2023 7,250 6,311
The Hospital Authority of Philadelphia Hospital
Revenue Bonds (Temple University Hospital):
Series of 1993 A, 6.50% 2008 12,500 12,902
Series of 1983, 6.625% 2023 20,385 20,382
City of Pottsville Hospital Authority, Hospital
Revenue Bonds (The Pottsville Hospital and Warne
Clinic), Series of 1994, 7.25% 2024 8,500 8,230
RHODE ISLAND - 2.25%
Convention Center Authority Refunding Revenue
Bonds, MBIA Insured:
1993 Series B, 5.00% 2008 2,790 2,691
1993 Series A, 5.00% 2010 3,190 2,969
1993 Series B, 5.25% 2015 5,000 4,657
Depositors Economic Protection Corporation, Special
Obligation Bonds:
1993 Series A, MBIA Insured, 5.75% 2012 4,850 4,834
1992 Series A, FSA Insured, 6.625% 2019
(Prerefunded 2002) 1,000 1,133
1993 Series A, 5.75% 2021 6,500 6,015
1993 Series A, 6.375% 2022 7,000 7,104
Housing and Mortgage Finance Corporation,
Homeownership Opportunity Bonds, Series 3-A,
7.80% 2010 2,500 2,685
SOUTH DAKOTA - 0.21%
South Dakota Housing Development Authority,
Homeownership Mortgage Bonds, 1995 Series A and B,
6.00% 2023 2,945 2,969
TENNESSEE - 2.42%
The Health and Educational Facilities Board of the
Metropolitan Government of Nashville and Davidson
County, Tennessee, 9.25% 2024 6,600 6,960
Memphis-Shelby County Airport Authority, Special
Facilities Revenue Bonds, Refunding Series 1992
(Federal Express Corporation), 6.75% 2012 26,375 27,549
TEXAS - 3.80%
National Research Laboratory Commission General
Obligation Bonds, Series 1990 (Superconducting
Super Collider Project), 7.125% 2020
(Prerefunded 2000) 14,450 16,279
City of Austin, Combined Utility Systems Revenue
Refunding Bonds, Series 1990 A, FGIC Insured,
6.00% 2010 2,000 2,023
Dallas-Fort Worth International Airport, Facility
Improvement Corporation (Delta Air Lines, Inc.),
Revenue Refunding Bonds, Series 1993, 6.25% 2013 6,420 6,296
Fort Worth Independent School District (Tarrant
County, Texas), Unlimited Tax Refunding Bonds,
Series 1993, 4.90% 2002 2,875 2,918
Harris County Health Facilities Development
Corporation, SCH Health Care System Revenue Bonds
(Sisters of Charity of the Incarnate Word,
Houston, Texas), Series 1991A, 7.10% 2021 8,000 8,655
Harris County Toll Road, Unlimited Tax and
Subordinate Lien Revenue Bonds, Series 1984,
10.375% 2014 (Prerefunded 1998) 1,000 1,143
North Central Texas Health Facilities Development
Corporation, Hospital Revenue Bonds
(Presbyterian Healthcare System Project),
Series 1993, 5.90% 2021 3,000 2,903
Northside Independent School District (Bexar,
Medina, and Bandera Counties, Texas), Unlimited
Tax School Building Bonds, Series 1991, 6.375% 2008 4,000 4,160
Tomball Hospital Authority, Hospital Revenue
Refunding Bonds, Series 1993, Tomball Regional
Hospital, 6.125% 2023 7,250 6,501
Village at Western Oaks Municipal Utility District,
City of Austin, Texas Contract Revenue Refunding
Bonds, Series 1991, FGIC Insured, 6.50% 2009 3,000 3,164
UTAH - 2.42%
Housing Finance Agency, Single Family Mortgage
Bonds, 1995 Issue E (Federally Insured or
Guaranteed Mortgage Loans), 5.50% 2024 2,000 2,007
Intermountain Power Agency:
Special Obligation Refunding Bonds,
5th Crossover Series: FGIC Insured 7.00% 2015
FGIC Insured, 7.00% 2015 7,000 7,479
7.20% 2019 1,000 1,056
Power Supply Revenue, Refunding Bonds,
1996 Series B, MBIA Insured:
6.25% 2006* 4,000 4,257
6.50% 2009* 2,000 2,122
Salt Lake City, Utah Hospital Revenue Bonds, Series
1992 (IHC Hospitals, Inc.):
5.50% 2021 8,100 7,476
6.25% 2023 10,000 10,102
VERMONT - 0.09%
Vermont Housing Finance Agency, Single Family
Housing Bonds, Series 4, 5.75% 2012 1,250 1,261
VIRGINIA - 1.49%
Industrial Development Authority of Fairfax
County, Hospital Revenue Refunding Bonds (Inova
Health System Hospitals Project), Series 1993A:
4.80% 2005 1,850 1,800
5.00% 2010 3,450 3,180
5.00% 2011 1,300 1,181
5.25% 2019 1,000 883
5.00% 2023 2,000 1,681
Industrial Development Authority of the County of
Hanover, Hospital Revenue Bonds, (Memorial Regional
Medical Center Project at Hanover Medical Park),
Series 1995, MBIA Insured:
6.50% 2009 1,000 1,101
6.375% 2018 3,000 3,213
6.00% 2009 1,550 1,633
Industrial Development Authority of the City of
Norfolk, Hospital Revenue Bonds (Sentara
Hospitals-Norfolk Project), Series 1991,
6.50% 2013 2,500 2,621
Commonwealth Transportation Board, Commonwealth of
Virginia Transportation Contract Revenue Bonds,
Series 1988 (Route 28 Project), 7.80% 2016
(Prerefunded 1998) 3,500 3,870
WASHINGTON - 7.66%
State General Obligation, Series B, 5.50% 2010 2,000 1,986
Washington Public Power Supply System:
Nuclear Project No. 1 Refunding Revenue Bonds:
Series 1989 A, 7.50% 2015 (Prerefunded 1999) 1,820 2,057
Series 1989 A, 6.00% 2017 11,000 10,560
MBIA Insured, 5.00% 2009 5,645 5,199
Nuclear Project No. 2 Refunding Revenue Bonds:
Series 1990 A, 7.375% 2012 (Prerefunded 2000) 17,335 19,805
Series 1993 A, 5.10% 2000 4,600 4,651
Series 1994 A, 6.00% 2007 20,000 20,579
Series 1994 A, 5.25% 2008 6,800 6,452
Nuclear Project No. 3 Refunding Revenue Bonds:
BIG Insured, 7.25% 2016 (Prerefunded 1999) 5,000 5,608
Series 1989 B, 7.25% 2015 (Prerefunded 2000) 5,450 6,128
Series 1989 B, FGIC Insured, 7.00% 2005 14,400 15,782
Series 1989 B, 5.375% 2015 5,000 4,459
Series 1989 B, 7.125% 2016 5,250 5,780
WEST VIRGINIA - 0.20%
Kanawha County, West Virginia, Pollution Control
Revenue Bonds (Union Carbide Corporation Project),
Series 1984, 7.35% 2004 2,600 2,853
WISCONSIN - 1.13%
Health and Educational Facilities Authority,
Revenue Bonds, Children's Hospital Project,
Series 1993, FGIC Insured, 5.50% 2006 2,000 2,060
Housing and Economic Development Authority, Housing
Revenue Bonds, 6.40% 2003 3,480 3,712
Pollution Control and Industrial Development Revenue
Bonds (General Motors Corporation Projects), City
of Janesville, Series 1984, 5.55% 2009 3,000 2,873
City of Superior, Wisconsin, Limited Obligation
Refunding Revenue Bonds (Midwest Energy Resources
Company Project), Series E-1991 (Collateralized),
FGIC Insured, 6.90% 2021 6,000 6,809
The Wisconsin Public Power Incorporated System,
Power Supply System Revenue Bonds, Series
1990 A, AMBAC Insured, 7.40% 2020 (Prerefunded
2000) 500 572
WYOMING - 0.05%
Community Development Authority, Single Family
Mortgage Bonds, 1989 Series A, 7.90% 2017 705 753
GUAM - 0.21%
Government of Guam, General Obligation Bonds,
1995 Series A, 5.625% 2002 3,000 3,006
--------
1,356,970
--------
Principal Market
TAX-EXEMPT SECURITIES MATURING IN Amount Value
ONE YEAR OR LESS - 4.27% (000) (000)
County of Alameda, California, 1995-96 Tax and
Revenue Anticipation Notes, 4.75% 1996 $10,800 10,872
State of California, 1994 Revenue Anticipation
Warrants, Series C, FGIC Insured, 5.75% 1996 5,975 6,047
State of Georgia, General Obligation Bonds, Series
1993 F, 6.50% 1995 4,240 4,271
Municipal Electric Authority of Georgia
Power Revenue Bonds, 1986 Series A, 7.875% 2018
(Prerefunded 1996) 3,500 3,618
Harris County, Texas, Tax Anticipation Notes,
Series 1995, 4.25% 1996 1,600 1,603
City and County of Honolulu, Hawaii, General
Obligation Bonds, Refunding and Improvement Series,
1993 B, 3.60% 1995 3,000 3,000
City of Houston, Texas, Tax and Revenue Anticipation
Notes, Series 1995, 4.50% 1996 10,000 10,044
Jacksonville Electric Authority, St. John's River
Power Park System Revenue Bonds, Issue One,
Series Five, 9.50% 2020 (Prerefunded 1995) 750 765
The Turnpike Authority of Kentucky, Resource
Recovery Road Revenue Refunding Bonds, 1981
Series A 13.125% 2009 (Prerefunded 1996) 5 6
County of Los Angeles, California, 1995-96 Tax and
Revenue Anticipation Notes, Series A, 4.50% 1996 7,425 7,456
State of Michigan, Full Faith and Credit General
Obligation Notes, 5.00% 1995 8,800 8,808
North Carolina Municipal Power Agency Number 1,
Catawba Electric Revenue Bonds:
Series 1985 B, 8.50% 2017 (Prerefunded 1996) 1,560 1,616
Series 1985 A, 9.625% 2019 (Prerefunded 1996) 750 787
South Carolina Public Service Authority, Electric
Revenue Bonds, 7.875% 2021 (Prerefunded 1996) 140 145
State of Wisconsin Operating Notes of 1995, 4.50%
1996 1,785 1,793
---------
60,831
---------
TOTAL TAX-EXEMPT SECURITIES (cost: $1,350,955,000) 1,417,801
Excess of cash and receivables over payables 6,179
---------
NET ASSETS $1,423,980
=========
*Represents a when-issued security.
</TABLE>
See Notes to Financial Statements
The Tax-Exempt Bond Fund of America
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1995 (dollars in thousands)
Assets:
Tax-exempt securities (cost: $1,350,955) $1,417,801
Cash 936
Receivables for--
Sales of investments $ 6,076
Sales of fund's shares 1,462
Accrued interest 21,200 28,738
------- -------
1,447,475
Liabilities:
Payables for--
Purchases of investments 18,425
Repurchases of fund's shares 1,276
Dividends payable 2,695
Management services 446
Accrued expenses 653 23,495
------- --------
Net Assets at August 31, 1995--
Equivalent to $11.94 per share on
119,298,302 shares of $1 par value
capital stock outstanding (authorized
capital stock--200,000,000 shares) $1,423,980
========
STATEMENT OF OPERATIONS
For the year ended August 31, 1995
(dollars in thousands)
Investment Income:
Income:
Interest on tax-exempt securities $ 88,624
Expenses:
Management services fee $ 5,202
Distribution expenses 3,001
Transfer agent fee 473
Reports to shareholders 32
Registration statement and prospectus 36
Postage, stationery and supplies 37
Directors' fees 31
Auditing and legal fees 40
Custodian fee 57
Taxes other than federal income tax 6 8,915
------- ------
Net investment income 79,709
------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 8,891
Net unrealized appreciation on investments:
Beginning of year 44,575
End of year 66,846
-------
Net increase in unrealized appreciation
on investments 22,271
--------
Net realized gain and increase in
unrealized appreciation on investments 31,162
--------
Net Increase in Net Assets Resulting
from Operations $110,871
========
STATEMENT OF CHANGES IN NET ASSETS
(dollars in thousands)
Year ended August 31
1995 1994
------- --------
Operations:
Net investment income $ 79,709 $ 76,230
Net realized gain (loss) on investments 8,891 (359)
Net change in unrealized appreciation
on investments 22,271 (80,386)
-------- --------
Net increase (decrease) in net assets
resulting from operations 110,871 (4,515)
-------- --------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (79,742) (77,282)
Distributions from net realized gain on
investments - (9,069)
--------- --------
Total dividends and distributions (79,742) (86,351)
-------- --------
Capital Share Transactions:
Proceeds from shares sold:
24,743,163 and 33,079,334
shares, respectively 285,197 399,869
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
4,184,414 and 4,618,485 shares,
respectively 48,311 55,571
Cost of shares repurchased:
28,504,965 and 25,556,775
shares, respectively (325,755) (306,226)
-------- --------
Net increase in net assets
resulting from capital share
transactions 7,753 149,214
-------- --------
Total increase in Net Assets 38,882 58,348
Net Assets:
Beginning of year 1,385,098 1,326,750
-------- --------
End of year $1,423,980 $1,385,098
========= =========
</TABLE>
See Notes to Financial Statements
THE TAX-EXEMPT BOND FUND OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. The Tax-Exempt Bond Fund of America (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Tax-exempt securities with original or remaining maturities in excess of
60 days are valued at prices obtained from a national municipal bond pricing
service. The pricing service takes into account various factors such as
quality, yield and maturity of tax-exempt securities comparable to those held
by the fund, as well as actual bid and asked prices on a particular day. Other
securities with original or remaining maturities in excess of 60 days,
including securities for which pricing service values are not available, are
valued at the mean of their quoted bid and asked prices. However, in
circumstances where the investment advisor deems it appropriated to do so,
securities will be valued at the mean of their representative quoted bid and
asked price, or, if such prices are not available, at the mean of such prices
for securities of comparable maturity quality and type. All securities with 60
days or less to maturity are valued at amortized cost, which approximates
market value.
Securities for which market quotations are not readily available are
valued at fair value as determined in good faith by the Valuation Committee of
the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Interest income is reported on the accrual basis. Premiums and
original issue discounts on securities purchased are amortized over the life of
the respective securities. Dividends are declared on a daily basis after the
determination of the fund's net investment income and paid to shareholders on a
monthly basis.
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 August 31, 1995, no credit was used to offset the
custodian fee.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of August 31, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $66,846,000, of which $73,463,000
related to appreciated securities and $6,617,000 related to depreciated
securities. There was no difference between book and tax realized gains on
securities transactions for the year ended August 31, 1995. The cost of
portfolio securities for book and federal income tax purposes was
$1,350,955,000 at August 31, 1995.
3. The fee of $5,202,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Directors 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 $60 million of average net assets;
0.21% of such assets in excess of $60 million but not exceeding $1 billion;
0.18% of such assets in excess of $1 billion but not exceeding $3 billion; and
0.16% of such assets in excess of $3 billion ("asset-based fee"); plus 3.00% on
the first $3,333,333 of the fund's monthly gross investment income; 2.50% of
such income in excess of $3,333,333 but not exceeding $8,333,333; and 2.25% of
such income in excess of $8,333,333 ("income-based fee").
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% 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 Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the year ended August 31, 1995,
distribution expenses under the Plan were $3,001,000. As of August 31, 1995,
accrued and unpaid distribution expenses were $653,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $473,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $670,000(after allowances to
dealers) as its portion of the sales charges paid by purchasers of the fund's
shares. Such sales charges are not an expense of the fund and, hence, are not
reflected in the accompanying statement of operations.
Directors of the fund 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 August 31, 1995, aggregate amounts deferred were $19,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors 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. As of August 31, 1995, accumulated net realized gain on investments was
$7,439,000 and additional paid-in capital was $1,230,429,000.
The fund made purchases and sales of investment securities of $646,108,000
and $674,159,000, respectively, during the year ended August 31, 1995.
Per-Share
Data and Ratios
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year ended August 31
1995 1994 1993 1992 1991
Net Asset Value, Beginning
of Year $11.65 $12.43 $11.78 $11.30 $10.78
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .68 .67 .68 .70 .71
Net realized and
unrealized gain
(loss) on investments .29 (.69) .73 .48 .52
---- ---- ---- ---- ----
Total income from
investment operations .97 (.02) 1.41 1.18 1.23
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends from net
investment income (.68) (.68) (.68) (.70) (.71)
Distributions from net
realized gains - (.08) (.08) - -
----- ----- ----- ----- -----
Total distributions (.68) (.76) (.76) (.70) (.71)
----- ----- ----- ----- -----
Net Asset Value, End of Year $11.94 $11.65 $12.43 $11.78 $11.30
===== ===== ===== ===== =====
Total Return* 8.70% (.14)% 12.42% 10.80% 11.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(in millions) $1,424 $1,385 $1,327 $921 $712
Ratio of expenses to average
net assets .66% .69% .71% .71% .72%
Ratio of net income to
average net assets 5.87% 5.53% 5.62% 6.04% 6.33%
Portfolio turnover rate 49.28% 22.40% 15.55% 17.22% 24.73%
</TABLE>
*This was calculated without deducting a sales charge. The maximum sales
charge is 4.75% of the fund's offering price.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
The Tax-Exempt Bond Fund of America, Inc.:
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 Bond Fund of
America, Inc. (the "Fund") at August 31, 1995, the results of its operations
for the year then ended, the changes in its net assets and the per-share data
and ratios for the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and per-share data and
ratios (hereafter referred to as "financial statements") are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at August 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Los Angeles, California
September 29, 1995
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. Any distributions paid
from realized net short-term or long-term capital gains are not exempt from
federal taxation.
Since the above is reported for the fund's fiscal year and not the calendar
year, shareholders should refer to the year-end information which will be
mailed in January 1996 to determine the calendar year status of the fund's
distributions for purposes of their 1995 tax returns. Shareholders should
consult their tax advisers.
THE TAX-EXEMPT BOND FUND OF AMERICA
BOARD OF DIRECTORS
H. FREDERICK CHRISTIE
Palos Verdes Estates, California
Private investor; former President and Chief Executive Officer, The Mission
Group; former President, Southern California Edison Company
DIANE C. CREEL
Long Beach, California
Chairwoman, Chief Executive Officer and President, The Earth Technology
Corporation
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board, Senior Resource
Group, Inc. (senior living centers management)
LEONARD R. FULLER
Los Angeles, California
President, Fuller & Company, Inc.
(financial management consulting firm)
ABNER D. GOLDSTINE
Los Angeles, California
President of the fund
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR.
Los Angeles, California
Chairman of the Board of the fund
Senior Vice President and Director,
Capital Research and Management Company
HERBERT HOOVER III
Pasadena, California
Private investor
RICHARD G. NEWMAN
Los Angeles, California
Chairman of the Board, President and Chief Executive Officer, AECOM Technology
Corporation (architectural engineering)
PETER C. VALLI
Long Beach, California
Chairman of the Board and Chief
Executive Officer, BW/IP International, Inc. (industrial manufacturing)
OTHER OFFICERS
NEIL L. LANGBERG
Los Angeles, California
Senior Vice President of the fund
Vice President - Investment
Management Group, Capital Research
and Management Company
MARY C. CREMIN
Brea, California
Vice President and Treasurer of the fund
Senior Vice President - Fund Business Management Group, Capital Research and
Management Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the fund
Senior Vice President - Fund Business Management Group, Capital Research and
Management Company
JULIE F. WILLIAMS
Los Angeles, California
Secretary of the fund
Vice President - Fund Business
Management Group, Capital Research
and Management Company
KIMBERLY S. VERDICK
Los Angeles, California
Assistant Secretary of the fund
Compliance Associate - Fund Business Management Group, Capital Research and
Management Company
NYMIA M. CUCUECO
Brea, California
Assistant Treasurer of the fund
Vice President - Fund Business
Management Group, Capital Research
and Management Company
ANTHONY W. HYNES, JR.
Brea, California
Assistant Treasurer of the fund
Vice President - Fund Business
Management Group, Capital Research
and Management Company
OFFICES OF THE FUND 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 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
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, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
THIS REPORT IS FOR THE INFORMATION OF SHAREHOLDERS OF THE TAX-EXEMPT BOND 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 FUND. IF USED AS
SALES MATERIAL AFTER DECEMBER 31, 1995, THIS REPORT MUST BE ACCOMPANIED BY AN
AMERICAN FUNDS GROUP STATISTICAL UPDATE FOR THE MOST RECENTLY COMPLETED
CALENDAR QUARTER.
Litho in USA BDA/ALI/2761
Lit. No. TEBF-011-1095
[The American Funds Group(R)]
