AMERICAN HIGH-INCOME TRUST
ANNUAL REPORT
for the year ended September 30, 1995
[The American Funds Group(R)]
AMERICAN HIGH-INCOME TRUST(R) seeks a high level of current income and,
secondarily, capital appreciation through a diversified, carefully supervised
portfolio consisting primarily of lower rated, higher risk corporate bonds.
ABOUT OUR COVER:
American High-Income Trust invests in a broad spectrum of companies in
industries ranging from paper and cardboard to communications to geothermal
energy.
RESULTS AT A GLANCE
<TABLE>
<CAPTION>
TOTAL RETURNS (for periods ended One Year Lifetime/2/
9/30/95)/1/ (annualized)
<S> <C> <C>
American High-Income Trust +13.34% +11.21%
Salomon Brothers Broad
Investment-Grade Bond Index +14.06% +9.14%
Salomon Brothers Long-Term
High-Yield Index +23.07% +11.77%
Lipper High-Yield Bond Fund +12.44% +9.62%
Index
30-DAY RATES (October)
Yield based on Securities and
Exchange Commission formula 8.95%
Distribution rate based on 8.37%
offering price
Distribution rate based on net 8.79%
asset value
</TABLE>
In its lifetime of over 7 1/2 years (2/19/88 through 9/30/95), American
High-Income Trust ranked ninth in total return among the 55 high-yield funds in
existence throughout the period, according to Lipper Analytical Services. For
the 12 months ended September 30, the fund ranked 30th of 108 high-yield funds;
for the five years ended September 30, it ranked 31st of 61 high-yield funds.
Lipper rankings do not reflect the effects of sales charges.
/1/Change in value of investment with dividends and capital gain distributions
reinvested
/2/Since 2/19/88
The SEC yield reflects income earned by the fund, while the distribution rate
reflects dividends actually paid by the fund.
Fund results in this report were computed without a sales charge unless
otherwise indicated. The maximum sales charge is 4.75%; sales charges are lower
for accounts of $25,000 or more. 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.
FELLOW SHAREHOLDERS:
Falling interest rates and rising demand for bonds helped American
High-Income Trust produce a solid stream of dividends while increasing its
share value during the 12 months ended September 30, 1995.
The value of your investment in the fund increased 13.3% for the fiscal
year if, like most investors, you reinvested your dividends of $1.325 a share,
which included a special dividend of 8.5 cents a share, and a capital gain
distribution of 7.5 cents a share paid last December. The fund's total return
was slightly below the 14.1% return generated by the unmanaged Salomon Brothers
Broad Investment-Grade Bond Index and trailed the Salomon Brothers Long-Term
High-Yield Index, which returned 23.1%. The fund surpassed the Lipper
High-Yield Bond Fund Index, which showed a 12.4% return.
The fund produced an income return of 9.96% for shareholders who
reinvested their dividends. Shareholders who took dividends in cash received an
income return of 9.52% and saw the value of their holdings rise 2.9%. Like last
year, we expect to pay a special dividend in December of at least eight cents a
share.
IMPROVING ENVIRONMENT
This fiscal year was a period of stark contrasts in the bond market. When
the year began on October 1, 1994, the bond market was in one of the worst
periods in its history. Prices had been falling steadily for almost nine months
as the Federal Reserve Board raised short-term interest rates in an effort to
nip inflationary expectations in the bud. Many investors, fearing rates would
continue rising, sold their fixed-income holdings, putting more downward
pressure on prices.
Following the November election, many investors believed there was a
chance of a balanced federal budget. They also began to believe that interest
rates had risen enough to meet the Fed's goal of slowing the economy. Sentiment
in the market began shifting dramatically in the first half of 1995; interest
rates fell and prices rallied strongly. Most of the fund's holdings recovered
the bulk of the ground they lost during the market slump.
American High-Income Trust's holdings also benefited in recent months from
renewed confidence in the economies of Mexico and other Latin American
countries. The fund owns bonds issued by governments and corporations in
Mexico, Argentina and Brazil. The value of these holdings fell when Mexico
abruptly devalued the peso last December, prompting investors to worry about
the creditworthiness of all Latin-American holdings. However, there has been
some recovery in those markets and American High-Income Trust has participated
in the upturn. The fund has 18% of its portfolio invested in securities issued
by governments and corporations outside the U.S. Six percent is invested in
developing markets, including 3% in Latin America. Beginning on page 5, we look
at three companies, in the U.S. and abroad, which typify the types of firms in
which the fund seeks to invest.
CHANGING THE PORTFOLIO MIX
The bond market recovery and an improving U.S. economy led to higher
values for a number of our holdings during the year. Many of these issues
gained in price to the point where we believed better values were available
elsewhere.
One area where we have been finding good value is in bonds that are
somewhat riskier than many of those we sold. As you may recall, two or three
years ago we tended to focus on the higher quality portion of the high-yield
market. At times, however, some of the best values can be found in somewhat
riskier credits which are frequently less well understood by the market. The
risks are higher, of course, but quite often higher yields more than compensate
for those risks. We never make investment decisions based solely on yield;
rather, we seek the most appealing balance of risk and reward. Our recent moves
are one factor that led to a higher dividend this year, even while interest
rates generally were falling. It also positioned the fund in the best way we
know to take advantage of today's opportunities.
SIMILARITIES TO AN EQUITY FUND
To understand the investment strategy of American High-Income Trust, it is
important to know that in many ways this fund resembles an equity fund. Many
bond fund managers who invest primarily in U.S. government bonds and other
investment-grade bonds focus almost exclusively on interest rates and economic
growth. American High-Income Trust's portfolio counselors focus on individual
companies, thoroughly researching each before investing, which is much the same
method used by equity fund managers. The value of a high-yield bond responds
both to a company's fortunes and to changes in interest rates. In that regard,
high-yield bonds share many characteristics with stocks, and shareholders of
the fund should be comfortable with the type of risk associated with an equity
investment.
Our emphasis on thorough research has helped produce solid returns. Since
its inception on February 19, 1988, through the latest fiscal year, an
investment in American High-Income Trust has grown at an annual compound rate
of 11.21%. The Salomon Brothers Broad Investment-Grade Bond Index grew at an
annual compound rate of 9.14% over the same period and the Salomon Brothers
Long-Term High-Yield Index rose 11.7%. The Lipper High-Yield Bond Fund Index
grew at an annual compound rate of 9.62%.
We are pleased that this year, which began with the challenge of rising
interest rates and depressed bond prices, ultimately turned out to be such a
rewarding period. We will continue our efforts to find investments that offer
the best possible combination of risk and reward. We look forward to reporting
to you again in six months.
Cordially,
Paul G. Haaga, Jr. Richard T. Schotte
Chairman of the Board President
November 8, 1995
AMERICAN HIGH-INCOME TRUST
10 LARGEST CORPORATE ISSUERS
(as of September 30, 1995)
<TABLE>
<CAPTION>
Percent
of Fund's
Assets
<S> <C>
NEXTEL Communications* 3.54%
California Energy 2.80
MFS Communications 2.78
Container Corp. of 2.67
America
Thrifty PayLess 2.57
Rogers Cantel Mobile 2.35
Communications
Videotron Holdings 2.10
Fort Howard Paper 2.02
Foodmaker 1.88
Nortel Inversora 1.84
</TABLE>
*Figure includes Dial Call and CenCall holdings.
CHARTING AN INVESTMENT IN AMERICAN HIGH-INCOME TRUST
Here's how a $10,000 investment in the fund grew between February 19, 1988,
when the fund began operations, and September 30, 1995, the end of the fund's
latest fiscal year. As you can see, that $10,000, with all distributions
reinvested, would have grown to $21,382.
$23,330/1/
Salomon Brothers
Long-Term
High-Yield Index
$21,382/2/ /3/
AMERICAN
HIGH-INCOME TRUST
with dividends
reinvested
$20,119/1/
Lipper High-Yield
Bond Fund Index
$19,461/1/
Salomon Brothers
Broad Investment-
Grade Bond Index
$13,207
Consumer Price Index
(inflation)
$10,000/2/
original investment
YEAR ENDED SEPTEMBER 30
/1/All results are calculated with dividends reinvested or interest compounded.
The Salomon Brothers indexes are unmanaged and do not reflect sales charges,
commissions or expenses.
/2/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 invested 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.
/3/Includes reinvested dividends of $10,914 and reinvested capital gain
distributions of $572.
AVERAGE ANNUAL COMPOUND RETURNS*
(FOR PERIODS ENDED SEPTEMBER 30, 1995)
Lifetime (since 2/19/88) +10.50%
Five Years +13.89%
One Year + 7.93%
*Assumes reinvestment of all distributions and payment of the 4.75% maximum
sales charge at the beginning of the stated periods.
AMERICAN HIGH-INCOME TRUST:
SEEKING TOTAL RETURN, NOT JUST YIELD
American High-Income Trust is a high-yield bond fund with a difference.
Like many similar funds, it invests in dozens of companies in a variety of
industries. But with our strong focus on individual companies and dedication to
research, we believe that American High-Income Trust offers important
advantages over most high-yield bond funds.
In the next few pages, we'll explain more about your fund's philosophy and
investment strategy. We'll also introduce you to three companies which display
attributes common to many of the fund's investments:
- - California Energy Co., Inc., an independent power producer, sold
high-yield bonds to finance its growth.
- - Container Corp. of America, a mature company in a cyclical industry,
refinanced its debt with money raised in the high-yield market.
- - Videotron Holdings PLC, a British firm on the leading edge of
communications technology, is typical of the young companies outside the U.S.
that turn to the high-yield market for financing.
To understand what led the fund to invest in these companies, it's
critical to realize that the fund does not make investment decisions based
solely on yield - the interest rate a bond pays. In the high-yield market, the
goals of seeking high current income and long-term total return are not always
compatible. Occasionally, you have to give up yield to preserve or increase
capital. We believe that focusing strictly on the interest rate a bond is
paying would be like a farmer focusing simply on one year's crops while
neglecting the long-term health of the land.
American High-Income Trust's goal is to simultaneously seek a high level
of current income while protecting and increasing the value of a shareholder's
investment over meaningful periods of time. Since its inception on February 19,
1988, the fund has earned a total return of 124.5%. The unmanaged Salomon
Brothers Broad Investment-Grade Bond Index earned 94.6% over the same period
while the Salomon Brothers Long-Term High-Yield Index rose 133.3% and the
Lipper High-Yield Bond Fund Index gained 101.2%.
[Pull Quote]
We believe that focusing strictly on the interest rate a bond is paying would
be like a farmer focusing simply on one year's crops while neglecting the
long-term health of the land.
[End Pull Quote]
American High-Income Trust has built this track record by investing in
bonds which your fund's managers believe have a good chance of increasing in
value as the issuers' fortunes improve. Ideally, the economic condition of a
company will improve enough that independent rating agencies upgrade its bonds.
When a bond's rating is upgraded, it is considered less risky and its value
tends to rise. The rising value of bonds held in the fund's portfolio can make
a substantial contribution to its return, over and above interest income.
Finding companies which offer the potential for long-term growth requires
extensive research and experience. When considering an investment, American
High-Income Trust's analysts and portfolio counselors ask dozens of questions,
frequently traveling to meet the firm's management and inspect facilities. They
study the company's cash flow and expenditures, ask about future plans and talk
to industry competitors and suppliers, whenever possible.
Good times don't tell the whole story of the fund, however. How well the
value of an investment holds up during a market downturn can be as important to
long-term investors as results in rising periods. Your fund isn't immune to
market downturns, of course, but its portfolio counselors and analysts believe
that thorough research can help limit losses in a slump by leading to
investment opportunities which we believe offer a good balance of risk and
return. This approach has led to a record of consistency. The fund has achieved
positive results in all but one calendar year in its history. According to
Lipper Analytical Services, only seven of 55 high-yield funds in existence over
the period can make the same claim.
CALIFORNIA ENERGY CO. INC.
PROFITS FROM THE EARTH'S CORE
California Energy Co., Inc. is turning the oldest source of energy on the
planet into usable power. The largest geothermal power producer in the world,
California Energy taps into superheated reservoirs of water thousands of feet
below the earth's surface to release steam which drives turbines.
An independent power producer, California Energy sells much of the
electricity it generates to utility companies. But the industry is changing
rapidly and many electric utilities face the possibility of deregulation after
decades of protection from competition.
California Energy is already preparing for the future by looking beyond
its traditional customer base. The company continues to expand and seek markets
outside the U.S. After developing operations in Arizona, California and Nevada,
California Energy is now building power plants in the Philippines and
Indonesia. When the current construction cycle is finished, the firm will have
doubled its global capacity.
The company sees tremendous potential for further growth as worldwide
demand for electricity increases. It has raised much of the money to build its
power plants overseas in the high-yield bond market. Your fund's managers
believe the securities may offer a good return.
"California Energy is the best-managed company I've seen in the industry.
They truly understand what's going on around the world," says Cathy Kehr, an
American High-Income Trust analyst.
As an example of its management capabilities, she points to the fall in
the company's operating costs. From 1991 through 1994, California Energy was
able to cut its average operating costs per kilowatt-hour by almost half.
CONTAINER CORP. OF AMERICA
THRIVING IN A MATURE INDUSTRY
American High-Income Trust has been an investor in Container Corp. of
America since the earliest days of the fund. Container Corp. is one of the
largest producers of cardboard boxes in the U.S.
As a leading company in a mature industry, Container Corp.'s fortunes are
tied largely to the U.S. economy. Its management is dedicated to reducing its
debt load; because it produces both the intermediate materials as well as
finished cardboard boxes, it is well-positioned to prosper if the economy
slows. "We have a lot of confidence in the management," says Susan Tolson, an
American High-Income Trust portfolio counselor and analyst.
The fund's managers learned about Container Corp. from equity fund
analysts who had researched its parent firm, Jefferson Smurfit Group PLC, based
in Dublin, Ireland. Fixed-income and equity analysts often share information
and insights before making an investment.
In 1993, Container Corp. refinanced its existing debt with new bonds,
which the fund purchased. The following year, Jefferson Smurfit Corp. (U.S.),
which is 46% owned by the Irish parent and owns Container Corp., sold stock and
became a publicly traded company. This gave Container Corp. a strong equity
backing and reduced its reliance on bonds for financing.
The company is a prime example of the fund's philosophy that thorough
research can unearth hidden opportunities in mature industries.
VIDEOTRON HOLDINGS PLC
CUTTING-EDGE TECHNOLOGY IN THE SHADOW OF TOWER BRIDGE
Videotron Holdings PLC is typical of the high-tech companies changing the
world of communications. A new cable television and telephone company with a
franchise in central London, Videotron provides services to both businesses and
residential users.
The company is developing its network with state-of-the-art cable
television and telephone technology. However, installing cable in London is
very expensive, so Videotron has yet to show a net profit. Like many young
companies, Videotron turned to the high-yield bond market to raise some of the
money it needs to build and expand.
"We have followed the U.K. cable industry for years and when these bonds
became available, we were ready to buy them," says Mike Cahill, an American
High-Income Trust analyst.
One of Videotron's strongest assets is the potential for growth in its
franchise area. Central London has a high concentration of businesses that can
afford advanced telephone and television technology.
Videotron also is operating in a favorable regulatory environment. The
dominant British telephone company, British Telecom, is currently prohibited
from competing with start-up cable companies, like Videotron, until at least
1998. This gives Videotron time to build its network and prepare to compete
with British Telecom.
Videotron also has strong equity backing from Bell Cablemedia PLC,
considered one of the premier U.K. cable television-telephone operators, which
owns a 26% stake.
American High-Income Trust
Investment Portfolio
September 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
U.S. Corporate Bonds 70%
Non-U.S. Bonds 16%
U.S. Treasuries 4%
Stocks 3%
Cash and Equivalents 7%
- -------------------------------------------------- --------- ----------- --------
Principal Market Percent
Amount Value of Net
Bonds & Notes - 90.16% (000) (000) Assets
Beverages - 1.47%
Canandaigua Wine Co., Inc. 8.75% 2003 $7,000 $6,930 .63%
Dr Pepper Bottlng Co. of Texas 10.25% 2000 9,000 9,360 .84
----------- --------
16,290 1.47
----------- --------
Broadcasting & Publishing - 4.22%
American Media Operation, Inc. 11.625% 2004 10,750 11,099 1.00
Infinity Broadcasting Corp. 10.375% 2002 8,450 9,042 .81
Marvel Holdings Inc. 0% 1998 24,000 17,400 1.57
Univision Television Group, Inc.:
11.75% 2001 4,350 4,676 .42
7.00% 2002 2,567 1,547 .14
Young Broadcasting Inc. 10.125% 2005 3,000 3,150 .28
----------- --------
46,914 4.22
----------- --------
Cable & Telephone in the United
Kingdom - 5.88%
Bell Cablemedia PLC 0%/11.95% 2004/1/ 29,000 18,995 1.71
International CableTel Inc.:
0%/10.875% 2003/1/ 21,175 13,764 1.24
0%/12.75% 2005/1/ 1,000 595 .05
TeleWest PLC:
9.625% 2006 4,500 4,522 .41
0%/11.00% 2007/1/ 7,000 4,130 .37
Videotron Holdings PLC:
0%/11.125% 2004/1/ 31,000 20,460 1.84
0%/11.00% 2005/1/ 5,000 2,863 .26
----------- --------
65,329 5.88
----------- --------
Cellular, Paging & Wireless
Communications - 18.43%
CAI Wireless Systems, Inc. 12.25% 2002 5,200 5,408 .49
CellNet Data Systems, Inc. 0%/13.00% 2005/1/ 25,000 12,031 1.08
Cellular, Inc. 0%/11.75% 2003/1/ 8,500 6,545 .59
Cellular Communications International, Inc.
Units, 0% 2000 20,250 11,239 1.01
CenCall Communications Corp. 0%/10.125% 2004/1//2//3/ 24,050 12,506 1.13
Centennial Cellular Corp. 8.875% 2001 17,000 16,235 1.46
Comcast Cellular Corp.:
Series A, 0% 2000 1,500 1,148 .10
Series B, 0% 2000 3,250 2,486 .22
Dial Call Communications, Inc. 0%/12.25% 2004/1//2/ 16,750 8,857 .80
Geotek Communications, Inc. Units, 0%/15.00% 2005/1/ 2,000 1,020 .09
Heartland Wireless Communications, Inc.
Units, 13.00% 2003 3,800 4,199 .38
Horizon Cellular Telephone Co., LP
0%/11.375% 2000/1/ 17,065 14,420 1.30
MobileMedia Communications, Inc.
0%/10.50% 2003/1/ 19,150 13,980 1.26
NEXTEL Communications, Inc./2/:
0%/11.50% 2003/1/ 18,000 10,238 .92
0%/9.75% 2004/1/ 15,500 7,614 .69
Paging Network, Inc. 11.75% 2002 14,250 15,675 1.41
PanAmSat, LP:
9.75% 2000 6,500 6,793 .61
0%/11.375% 2003/1/ 7,000 5,460 .49
People's Choice TV Corp. Units, 0%/13.125% 2004/1/ 18,250 9,672 .87
PriCellular Wireless Corporation:
0%/14.00% 2001/1/ 4,000 3,320 .30
0%/12.25% 2003/1/ 13,710 9,803 .88
Rogers Cantel Mobile Communications Inc.:
10.75% 2001 22,330 23,446 2.11
11.125% 2002 2,500 2,644 .24
----------- --------
204,739 18.43
----------- --------
Construction & Housing - 1.72%
Building Materials Corp. of America
0%/11.75% 2004/1/ 6,500 4,062 .37
Del Webb Corp.:
9.75% 2003 3,000 2,940 .26
9.00% 2006 1,750 1,623 .15
Toll Corp. 9.50% 2003 4,000 4,020 .36
Triangle Pacific Corp. 10.50% 2003 6,250 6,469 .58
----------- --------
19,114 1.72
----------- --------
Diversified Media, Cable Television &
Telecommunications - 6.99%
Cablevision Systems Corp. 9.875% 2013 4,000 4,180 .38
Century Communications Corp. 9.50% 2000 4,100 4,141 .37
Comcast Corp. 10.25% 2001 2,200 2,354 .21
Continental Cablevision, Inc.:
10.625% 2002 8,000 8,440 .76
8.625% 2003 10,000 10,125 .91
11.00% 2007 1,500 1,657 .15
Insight Communications Co., LP 8.25% 2000/4/ 1,500 1,515 .14
IntelCom Group Inc. Units, 0%/13.50% 2005/1/ 13,000 7,150 .64
Jones Intercable, Inc. 9.625% 2002 4,500 4,680 .42
MFS Communications Co., Inc. 0%/9.375% 2004/1/ 40,850 30,944 2.78
Storer Communications, Inc. 10.00% 2003 2,534 2,547 .23
----------- --------
77,733 6.99
----------- --------
Energy & Related Companies - 7.11%
Dual Drilling Co. 9.875% 2004 9,450 8,812 .79
Flores & Rucks, Inc. 13.50% 2004 9,000 10,080 .91
Global Marine, Inc. 12.75% 1999 5,900 6,519 .59
Mesa Capital Corp. 12.75% 1998 4,500 4,151 .37
Oil Co. Ltd. 8.90% 2000/5/ 3,500 3,561 .32
TransTexas Gas Corp. 11.50% 2002 15,750 16,498 1.48
Triton Energy Corp. 0%/9.75% 2000/1/ 8,000 7,320 .66
Tuboscope Vetco International Inc. 10.75% 2003 7,000 6,965 .63
Wilrig AS 11.25% 2004 14,000 15,120 1.36
----------- --------
79,026 7.11
----------- --------
Food Retailing - 2.16%
Safeway Inc. 10.00% 2002 1,700 1,946 .18
Star Markets Co., Inc. 13.00% 2004 11,000 10,450 .94
Stater Bros. Holdings Inc. 11.00% 2001 11,500 11,586 1.04
----------- --------
23,982 2.16
----------- --------
Forest Products & Paper - 9.27%
Container Corp. of America:
10.75% 2002 3,000 3,158 .28
9.75% 2003 23,750 23,869 2.15
11.25% 2004 2,500 2,644 .24
Fort Howard Paper Co.:
9.25% 2001 15,250 15,059 1.36
8.25% 2002 3,000 2,850 .26
9.00% 2006 4,750 4,465 .40
Klabin Fabricadora de Papel e Cellulose
SA 10.00% 2001/5/ 834 788 .07
MAXXAM Group Inc. 11.25% 2003 3,000 2,933 .26
Pacific Lumber Co. 10.50% 2003 7,000 6,650 .60
P.T. Indah Kiat Pulp & Paper Corp.:
8.875% 2000/5/ 13,750 12,994 1.17
11.875% 2002 2,000 2,055 .19
P.T. Inti Indorayon Utama 9.125% 2000 1,000 940 .08
P.T. Pabrik Kertas Tjiwi Kimia 13.25% 2001 5,500 5,940 .53
Repap Wisconsin, Inc. Second Priority 9.875% 2006 5,000 4,800 .43
Riverwood International Corp.:
10.75% 2000 8,500 9,052 .81
Series II, 10.75% 2000 1,000 1,065 .10
11.25% 2002 3,500 3,754 .34
----------- --------
103,016 9.27
----------- --------
Independent Power Producers - 4.46%
California Energy Co., Inc.
0%/10.25% 2004/1/ 34,750 30,580 2.75
Midland Cogeneration Venture LP:
Series C-91, 10.33% 2002 6,573 6,771 .61
Series C-94, 10.33% 2002 5,909 6,146 .55
Subic Power Corp. 9.50% 2008/5/ 6,517 6,061 .55
----------- --------
49,558 4.46
----------- --------
Leisure, Tourism & Restaurants - 6.32%
Foodmaker, Inc.:
9.25% 1999 14,000 13,020 1.17
9.75% 2002 8,824 7,677 .69
Four Seasons Hotels Inc. 9.125% 2000/5/ 7,000 6,825 .61
Harrah's Jazz Finance Corp. 14.25% 2001 16,125 15,077 1.36
Kloster Cruise Ltd. 13.00% 2003 13,100 9,563 .86
Plitt Theatres, Inc. 10.875% 2004 15,500 14,725 1.33
Station Casinos, Inc. 9.625% 2003 3,500 3,325 .30
----------- --------
70,212 6.32
----------- --------
Manufacturing & Materials - 6.82%
ACME Metals Inc.:
12.50% 2002 7,000 6,930 .62
0%/13.50% 2004/1/ 5,750 4,514 .41
AK Steel Corporation 10.75% 2004 6,500 6,947 .63
Coltec Industries Inc.:
9.75% 1999 2,500 2,606 .23
9.75% 2000 12,500 13,031 1.17
Exide Corp. 10.00% 2005 7,250 7,649 .69
Kaiser Aluminum and Chemical Corp.:
9.875% 2002 3,000 3,000 .27
12.75% 2003 8,000 8,660 .78
MagneTek, Inc. 10.75% 1998 5,700 5,985 .54
Owens-Illinois, Inc. 11.00% 2003 4,750 5,219 .47
UCAR Global Enterprises Inc. 12.00% 2005 3,430 3,824 .34
Westinghouse Air Brake Company 9.375% 2005 5,750 5,951 .54
Westpoint Stevens Inc. 8.75% 2001 1,500 1,489 .13
----------- --------
75,805 6.82
----------- --------
Merchandising - 3.94%
Ann Taylor 8.75% 2000 3,000 2,730 .25
Barnes & Noble, Inc. 11.875% 2003 9,450 10,442 .94
Levitz Furniture Corp. 12.375% 1997 2,000 2,010 .18
Thrifty PayLess, Inc.:
11.75% 2003 10,000 10,525 .95
Units, 12.25% 2004 2,000 2,157 .19
12.25% 2004 15,250 15,860 1.43
----------- --------
43,724 3.94
----------- --------
Miscellaneous Services - 2.24%
ADT Operations 9.25% 2003 2,000 2,085 .19
Neodata Services, Inc. 0%/12.00% 2003/1/ 12,000 10,680 .96
Protection One Alarm Monitoring, Inc.
Units, 0%/13.625% 2005/1/ 9,500 6,745 .60
Universal Health Services, Inc. 8.75% 2005 5,500 5,431 .49
----------- --------
24,941 2.24
----------- --------
Real Estate - 0.35%
B.F. Saul Real Estate Investment Trust
11.625% 2002 4,000 3,920 .35
----------- --------
Transportation - 2.31%
Delta Air Lines, Inc.:
10.375% 2011 2,000 2,353 .21
Pass-through certificates, Series 1993-A2,
10.50% 2016 1,000 1,188 .11
10.375% 2022 1,750 2,096 .19
Jet Equipment Trust, Series 1995-B, 10.91% 2014 1,000 1,035 .09
Northwest Airlines, Inc. 12.092% 2000 1,668 1,720 .16
NWA Inc. 8.625% 1996 1,175 1,175 .11
NWA Trust, Class D, 13.875% 2008 3,750 4,242 .38
TNT Transport (Europe) PLC TNT (USA)
Inc. 11.50% 2004 5,500 5,706 .51
Viking Star Shipping Inc. 9.625% 2003 6,000 6,135 .55
----------- --------
25,650 2.31
----------- --------
Collateralized Mortgage/Asset-Backed
Obligations/6/ - 0.57%
Fifth Avenue Capital Trust, Class C, 12.36% 2002 5,000 5,150 .46
Resolution Trust Corp.:
Series 1993-C1, Class E, 9.50% 2024 413 406 .04
Series 1993-C2, Class E, 8.50% 2025 741 733 .07
----------- --------
6,289 .57
----------- --------
Non-U.S. Governments and Governmental
Authorities - 1.46%
Argentina (Republic of):
6.812% 2005/4/ 6,000 3,720 .34
5.00% 2023/4/ 2,000 960 .09
Brazil (Federal Republic of) DCB, 7.313% 2012/4/ 2,000 1,153 .10
Poland (Republic of):
Past Due Interest Bond 3.25% 2014/4/ 7,000 4,410 .40
Discount Bond 7.125% 2024/4/ 1,500 1,157 .10
United Mexican States Collateralized Eurobond:
Series A, 6.25% 2019 1,400 845 .08
Series B, 6.25% 2019 6,500 3,924 .35
----------- --------
16,169 1.46
----------- --------
U.S. Treasury Obligations - 4.44%
7.25% 1998 5,000 5,147 .46
6.875% 1999 20,000 20,594 1.85
6.75% 2000 3,000 3,085 .28
7.50% 2001 10,000 10,709 .97
5.75% 2003 8,000 7,783 .70
5.875% 2004 2,000 1,958 .18
----------- --------
49,276 4.44
----------- --------
Total Bonds & Notes (cost: $1,002,108,000) 1,001,687 90.16
----------- --------
Number of
Shares
Stocks (Common & Preferred) - 2.46%
California Energy Co., Inc./7/ 25,000 513 .05
CellNet Data Systems, Inc., warrants/7/ 100,000 2,057 .18
Cellular Communications, Inc./7/ 35,000 1,907 .17
Comcast Corp., Class A 10,000 199 .02
Comcast Corp., Class A, special stock 20,000 400 .04
Dial Page, Inc., warrants/7/ 21,250 - .00
Foodmaker, Inc./7/ 30,000 173 .02
Host Marriott Corp./7/ 13,896 172 .01
LIN Broadcasting Corp./7/ 2,000 259 .02
Marriott International Inc. 13,896 519 .05
Nacional Financiers S.N.C. PRIDES 11.25% 1998 20,000 655 .06
Nortel Inversora SA, Class A, preferred
(American Depositary Receipts)/5/ 2,016,500 20,467 1.84
----------- --------
Total Stocks (cost: $21,397,000) 27,321 2.46
----------- --------
Principal
Amount
(000)
Convertible Debentures - 0.12%
Euro Disney S.C.A. 6.75% 2001 $7,700 1,336 .12
----------- --------
Total Convertible Debentures (cost:
$990,000) 1,336 .12
----------- --------
Short-Term Securities
Corporate Short-Term Notes - 6.03%
Associates Corp. of North America 6.61%
due 10/2/95 8,680 8,677 .78
Commonwealth Bank of Australia 5.75% due 10/3/95 10,000 9,995 .90
Ford Motor Credit Co. 5.74% due 10/6/95 15,000 14,986 1.35
H.J. Heinz Co. 5.74% due 10/5/95 12,000 11,990 1.08
UBS Finance (Delaware) Inc. 6.50% due 10/2/95 13,300 13,295 1.20
Wal-Mart Stores Inc. 5.70% due 10/2/95 8,000 7,998 .72
----------- --------
Total Short-Term Securities (cost:
$66,941,000) 66,941 6.03
----------- --------
Total Investment Securities (cost:
$1,091,436,000) 1,097,285 98.77
Excess of cash and receivables over
payables 13,701 1.23
----------- --------
Net Assets $1,110,986 100.00%
=========== ========
/1/ Represents a zero coupon bond which will convert to a coupon-bearing security at a later date.
/2/ CenCall Communications merged with NEXTEL on July 28, 1995, and Dial Call Communications is
expected to merge with NEXTEL before the end of this calendar year. After their respective
closings, the securities of CenCall and Dial Call will become obligations of NEXTEL.
/3/ Valued under procedures established by the Board of Trustees.
/4/ Coupon rate may change periodically.
/5/ Purchased in a private placement transaction; resale to the public may
require registration.
/6/ Pass-through security backed by a pool of mortgages or other loans on which
principal payments are periodically made. Therefore, the effective maturity
of these securities is shorter than the stated maturity.
/7/ Non-income-producing security.
</TABLE>
See Notes to Financial Statements
American High-Income Trust
Financial Statements
Statement of Assets and Liabilities
at September 30, 1995 (dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investment securities
(cost: $1,091,436) $1,097,285
Cash 211
Receivables for--
Sales of investments $ 3,195
Sales of fund's shares 3,344
Accrued dividends and interest 20,349 26,888
------------- ---------------
1,124,384
Liabilities:
Payables for--
Purchases of investments 8,437
Repurchases of fund's shares 784
Forward currency contracts 74
Dividends on fund's shares 3,437
Management services 468
Accrued expenses 198 13,398
-------------- ---------------
Net Assets at September 30, 1995--
Equivalent to $14.30 per share on
77,694,271 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $1,110,986
===============
Statement of Operations
for the year ended September 30, 1995
(dollars in thousands)
Investment Income:
Income:
Dividends $ 2,167
Interest 95,851 $ 98,018
-------------
Expenses:
Management services fee 4,916
Distribution expenses 2,068
Transfer agent fee 738
Reports to shareholders 101
Registration statement and prospectus 103
Postage, stationery and supplies 122
Trustees' fees 21
Auditing and legal fees 43
Custodian fee 51
Taxes other than federal income tax 18
Other expenses 13 8,194
------------- ---------------
Net investment income 89,824
---------------
Realized Loss and Unrealized
Appreciation on Investments:
Net realized loss (7,154)
Net unrealized (depreciation)
appreciation on investments:
Beginning of year (31,188)
End of year 5,775
-------------
Net change from unrealized depreciation
to unrealized appreciation on investments 36,963
---------------
Net realized loss and unrealized
appreciation on investments 29,809
---------------
Net Increase in Net Assets
Resulting from Operations $119,633
===============
Statement of Changes in Net Assets
(dollars in thousands)
Year Ended
September 30,
1995 1994
Operations: ------------- ---------------
Net investment income $ 89,824 $ 68,864
Net realized (loss) gain on investments (7,154) 5,459
Net unrealized appreciation (depreciation)
on investments 36,963 (65,611)
------------- ---------------
Net increase in net assets
resulting from operations 119,633 8,712
------------- ---------------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (87,231) (65,637)
Distributions from net realized
gain on investments (4,494) (13,187)
------------- ---------------
Total dividends and distributions (91,725) (78,824)
------------- ---------------
Capital Share Transactions:
Proceeds from shares sold:
30,002,672 and 29,570,527
shares, respectively 414,416 438,518
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on
investments: 4,145,269 and
3,412,975 shares, respectively 56,782 50,345
Cost of shares repurchased:
16,228,009 and 19,805,346
shares, respectively (223,033) (291,279)
------------- ---------------
Net increase in net assets
resulting from capital share
transactions 248,165 197,584
------------- ---------------
Total Increase in Net Assets 276,073 127,472
Net Assets:
Beginning of year 834,913 707,441
------------- ---------------
End of year (including undistributed
net investment income: $7,839
and $5,246, respectively) $1,110,986 $834,913
============= ===============
</TABLE>
See Notes to Financial Statements
Notes to Financial Statements
1. American High-Income Trust (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:
Stocks and convertible debentures are stated at market value based upon
closing sales prices reported on recognized securities exchanges on the last
business day of the year or, for listed securities having no sales reported,
upon last-reported bid prices on that date. Securities traded in the
over-the-counter market are valued at the last available sale prior to the time
of valuation or, lacking any sales, at the last reported bid price.
Bonds and notes are valued at prices obtained from a bond-pricing service
provided by a major dealer in bonds, 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 of their representative quoted bid
and asked prices or, if such prices are not available, at prices for securities
of comparable maturity, quality and type.
Short-term securities with original or remaining maturities in excess of
60 days, including forward currency contracts, are valued at the mean of their
quoted bid and asked prices. Short-term 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 Trustees.
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. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends are declared on a daily basis after the determination of the fund's
net asset value and paid to shareholders on a monthly basis. Distributions
paid to shareholders are recorded on the ex-dividend date.
Investment securities and other assets and liabilities, including forward
currency contracts, denominated in non-U.S. currencies are recorded in the
financial statements after translation into U.S. dollars utilizing rates of
exchange on the last business day of the year. Purchases and sales of
investment securities, income, and expenses are calculated using the prevailing
exchange rate as accrued. The fund does not identify the portion of each
amount shown in the fund's statement of operations under the caption "Realized
Loss and Unrealized Appreciation on Investments" that arises from changes in
non-U.S.currency exchange rates.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $51,000 includes $32,000 that was paid by these credits
rather than in cash.
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 taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of September 30, 1995, net unrealized appreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $5,849,000, of which $33,612,000 related to appreciated securities
and $27,763,000 related to depreciated securities. The fund has available at
September 30, 1995 a net capital loss carryforward totaling $7,107,000, which
may be used to offset capital gains realized during subsequent years through
2002 and thereby relieve the fund and its shareholders of any federal income
tax liability with respect to capital gains that are so offset. It is the
intention of the fund not to make distributions from capital gains while there
is a capital loss carryforward. There was no difference between book and tax
realized gains on securities transactions for the year ended September 30,
1995. The cost of portfolio securities, excluding forward currency contracts,
for book and federal income tax purposes was $1,091,436,000 at September 30,
1995.
3. The fee of $4,916,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% of the first $60 million of average net assets;
0.21% of such assets in excess of $60 million but not exceeding $1 billion; and
0.18% of such assets in excess of $1 billion; plus 3.00% on the first $100
million of the fund's annual gross investment income; and 2.50% of such income
in excess of $100 million.
Pursuant to a Plan of Distribution, the fund may expend up to 0.30% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Trustees. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the year ended September 30, 1995,
distribution expenses under the Plan were $2,068,000. As of September 30,
1995, accrued and unpaid distribution expenses were $173,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $738,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $1,209,000 (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.
Trustees 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 September 30, 1995, aggregate amounts deferred were $16,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of September 30, 1995, accumulated net realized loss on investments was
$7,107,000 and paid-in capital was $1,104,479,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $430,069,000 and $254,299,000, respectively, during
the year ended September 30, 1995.
The fund purchases forward currency contracts in anticipation of, or to
protect itself against, fluctuations in exchange rates. The contracts are
recorded at market value and reflect the extent of the fund's involvement in
these financial instruments. Risks may arise upon entering these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from the possible movements in non-U.S. exchange rates and
securities values underlying these instruments. At September 30, 1995, the
fund had an outstanding forward currency contract to sell non-U.S. currency as
follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Contract Amount U.S. Valuation at 9/30/95
------------ ------------ ------------- ------------
Unrealized
Non-U.S. Currency Contracts Non-U.S. U.S. Amount Depreciation
- -- ---------------------------- ------------ ------------ ------------- ------------
French Francs expiring 11/27/95 FF5,100,000 $961,000 $1,035,000 $(74,000)
</TABLE>
Per-Share
Data and Ratios
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year Ended September 30,
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
Net Asset Value, Beginning
of Year $13.97 $15.18 $14.58 $13.56 $11.81
-------- -------- -------- -------- --------
Income from Investment
Operations:
Net investment income 1.33 1.25 1.28 1.35 1.46
Net realized and
unrealized gain
(loss) on investments .39 (.99) .74 .99 1.78
-------- -------- -------- -------- --------
Total income from
investment operations 1.72 .26 2.02 2.34 3.24
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income (1.32) (1.21) (1.29) (1.32) (1.49)
Distributions from net
realized gains (.07) (.26) (.13) - -
-------- -------- -------- -------- --------
Total distributions (1.39) (1.47) (1.42) (1.32) (1.49)
-------- -------- -------- -------- --------
Net Asset Value, End of Year $14.30 $13.97 $15.18 $14.58 $13.56
======== ======== ======== ======== ========
Total Return * 13.34% 1.60% 14.59% 18.08% 29.13%
Ratios/Supplemental Data:
Net assets, end of year
(in millions) $1,111 $835 $707 $438 $255
Ratio of expenses to average
net assets .89% .86% .87% .94% 1.00%
Ratio of net income to
average net assets 9.72% 8.63% 8.60% 9.58% 11.41%
Portfolio turnover rate 29.56% 42.03% 44.37% 58.04% 44.38%
</TABLE>
* This was calculated without deducting a sales charge. The maximum sales
charge is 4.75% of the fund's offering price.
Independent Auditors' Report
To the Board of Trustees and Shareholders of
American High-Income Trust:
We have audited the accompanying statement of assets and liabilities of
American High-Income Trust, including the schedule of portfolio investments as
of September 30,1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the per-share data and ratios for each of the five years
in the period then ended. These financial statements and the per-share data
and ratios are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and the per-share data
and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
per-share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at September 30, 1995 by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of American High-Income Trust as of September 30, 1995, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the per-share data and ratios
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Los Angeles, California
October 23, 1995
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.
Corporate shareholders may exclude up to 70% of qualifying dividends
received during the year. For purposes of computing this exclusion, 2% of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Certain states may exempt from income taxation a portion of the dividends
paid from net investment income if derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, 3% of the dividends
paid by the fund from net investment income was derived from interest on direct
U.S. Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
Since the amounts above are reported for the fiscal year and not the
calendar year, shareholders should refer to their Form 1099-DIV which will be
mailed in January 1996 to determine the calendar year amounts to be included on
their 1995 tax returns. Shareholders should consult their tax advisers.
AMERICAN HIGH-INCOME TRUST
BOARD OF TRUSTEES
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
(environmental engineering)
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)
ABNER D. GOLDSTINE, Los Angeles, California
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
RICHARD T. SCHOTTE, Los Angeles, California
President of the fund
Senior Vice President,
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
Assistant 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 AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017-2472
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of American High-Income
Trust, 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 MNC/GAC/2743
Lit. No. AHIT-011-1195
[The American Funds Group(R)]
