[The American Funds Group(r)]
AMERICAN HIGH-INCOME TRUST
Semi-Annual Report
for the six months ended March 31, 1998
[cover: sketch of man looking through binoculars]
AMERICAN HIGH-INCOME TRUST(SM) 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.
AMERICAN HIGH-INCOME TRUST IS ONE OF THE 28 MUTUAL FUNDS IN THE AMERICAN FUNDS
GROUP,(R) MANAGED BY CAPITAL RESEARCH AND MANAGEMENT COMPANY. SINCE 1931,
CAPITAL HAS INVESTED WITH A LONG-TERM FOCUS BASED ON THOROUGH RESEARCH AND
ATTENTION TO RISK.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the fund's returns, with all distributions
reinvested, through March 31, 1998 (the most recent calendar quarter), assuming
payment of the 4.75% maximum sales charge at the beginning of the stated
periods (sales charges are lower for accounts of $25,000 or more):
Total Average Annual
Return Compound Return
Ten Years +196.39% +11.48%
Five Years + 61.48 +10.06
One Year + 11.83 -
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE 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:
The first half of American High-Income Trust's fiscal year was a good period
for high-yield bonds. A combination of declining interest rates, steady
corporate profits and a strong stock market helped fuel solid gains for the six
months ended March 31.
Shareholders received monthly dividends totaling 60 cents a share during the
period as well as a special 8-cent-a-share dividend paid in December. If you
reinvested these dividends you earned an income return of 4.5% for the six
months; for the 12 months ended March 31, you earned an income return of 9.1%.
Shareholders also received a capital gain distribution of 33.6 cents a share in
December, which, combined with the monthly dividends and the change in value of
the fund's holdings, produced a total return of 6.1% for the six months.
Shareholders who elected to take their dividends in cash had an income return
of 4.4% and saw the value of their holdings rise 1.6%.
American High-Income Trust outpaced the 4.6% total return earned by the
unmanaged Salomon Brothers Broad Investment-Grade Bond Index, which measures
results in the investment-grade bond market. It trailed the 7.2% total return
of the unmanaged Salomon Brothers Composite High-Yield Index, which measures
results in the high-yield market. The box on the previous page shows the
results of these and other relevant indexes.
RESULTS AT A GLANCE
TOTAL RETURNS/1/
(FOR PERIODS ENDED 3/31/98) Six Months One Year Lifetime/2/
American High-Income Trust +6.1% +17.4% +210.5%
Salomon Brothers Broad
Investment-Grade Bond Index +4.6 +12.0 +134.4
Salomon Brothers Composite
High-Yield Index +7.2 +17.8 +216.2
Salomon Brothers Long-Term
High-Yield Index +8.4 +22.2 +225.9
Lipper High Current Yield
Bond Funds Index +5.8 +17.3 +175.1
30-DAY RATES (AS OF 4/30/98)
Yield based on Securities and Exchange Commission formula 7.20%
Distribution rate based on offering price 7.34
Distribution rate based on net asset value 7.70
/1/Change in value of investment with dividends and capital gain distributions
reinvested
/2/Since 2/19/88
The SEC yield reflects income the fund expects to earn based on its current
portfolio of securities, while the distribution rate is based solely on the
fund's past dividends. Accordingly, the fund's SEC yield and distribution rate
may differ.
Investors' belief that inflation would remain in check for the near future
provided a stimulus for bond prices during the first half of our 1998 fiscal
year. High-yield bonds also benefited from the strong economy, which produced
healthy corporate earnings and boosted stock values. Solid corporate earnings
and the ability of companies to raise capital in a strong stock market
generally create a favorable environment for high-yield bonds leading to lower
yields and higher prices.
However, as conditions improve in the high-yield market, the need for caution
increases. Recently, as yields of high-yield bonds declined and their prices
rose, the spread, or difference, between the yields of lower rated bonds and
higher rated bonds narrowed.
Finding issues that have the potential for solid long-term returns in a
marketplace crowded with bonds offering similar yields requires thorough
research into the companies issuing the debt. The portfolio counselors and
credit analysts at Capital Research and Management Company (CRMC), the
investment adviser to American High-Income Trust, study every company before
adding it to the fund's portfolio.
Searching for the best opportunities often means looking outside the United
States in both developed markets and developing areas. Investing beyond U.S.
borders broadens the pool of investments available to the fund and offers
additional diversification, which can be important when interest rates and
growth rates diverge around the world. At the end of the fiscal half year,
20.4% of the fund's assets were invested in securities of issuers domiciled
outside the United States and 5% of its assets were denominated in currencies
other than U.S. dollars. With five research offices in Europe and Asia, CRMC
and its affiliates are well equipped to search for opportunities outside the
United States.
The fund's largest bond holding, NTL Inc., a United Kingdom cable television
and telecommunications service company, reflects this emphasis on global
research. At the end of the recent six months, three of the fund's four largest
holdings were in cable and communications companies. The fund also has
extensive holdings in manufacturing and diversified media.
The first six months of this fiscal year marked an important milestone for
American High-Income Trust: In February, the fund marked 10 years of operation.
The number of shareholder accounts in the fund continued to grow, increasing
13.2% during the six months to more than 89,000, while the fund's assets
increased 16.3% to $2.4 billion.
In May the monthly dividend was increased to 10.5 cents from 10.0 cents a
share. We thank you for the confidence you have shown in us, and we look
forward to reporting to you again in six months when we will explore the fund's
first decade in more detail.
Cordially,
/s/Paul G. Haaga, Jr. /s/Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Board President
May 15, 1998
IN FEBRUARY, ABNER D. GOLDSTINE WAS ELECTED PRESIDENT OF AMERICAN HIGH-INCOME
TRUST. HE REPLACES RICHARD T. SCHOTTE, WHO RETIRED. MR. GOLDSTINE HAS BEEN AN
INVESTMENT PROFESSIONAL WITH CRMC FOR MORE THAN 30 YEARS AND IS ALSO PRESIDENT
OF SEVERAL OTHER FIXED-INCOME
<TABLE>
American High-Income Trust
Investment Portfolio
March 31, 1998
Unaudited
- --------------------------------------------------
<S> <C> <C> <C>
U.S. Corporate Bonds 65%
Non-U.S. Corporate Bonds 15%
Stocks 9%
U.S. Treasuries 3%
Non-U.S. Government Bonds 3%
Cash Equivalents 5%
- -------------------------------------------------- --------- ----------- --------
Principal Market Percent
Amount Value of Net
Bonds & Notes - 85.94% (000) (000) Assets
Banking & Financial Services - 1.04%
Amresco, Inc. Series 1998-A, 9.875% 2005(1) $7,000 $7,140 .29%
Chevy Chase Bank, FSB 9.25% 2008 2,000 2,090 .09
First Nationwide Holdings Inc.:
10.625% 2003(1) 4,000 4,490
12.50% 2003 2,000 2,290 .28
Korea Development Bank:
6.625% 2003 2,425 2,128
6.75% 2005 500 432
7.25% 2006 1,050 945 .14
Superior Financial Corp. 8.65% 2003(1) 6,000 6,000 .24
----------- --------
25,515 1.04
----------- --------
Beverages - 1.30%
Canandaigua Wine Co., Inc.:
8.75% 2003 12,000 12,180
8.75% 2003 4,500 4,613 .68
Delta Beverage Group, Inc. 9.75% 2003(1) 12,100 12,644 .52
Sparkling Spring Water Group, Ltd. 11.50% 2007(1) 2,250 2,362 .10
----------- --------
31,799 1.30
----------- --------
Broadcasting & Publishing - 6.56%
Acme Intermediate Holdings, LLC 0%/12.00% 2005 (1),(2) 12,689 8,058 .33
American Media Operations, Inc. 11.625% 2004 4,650 5,045 .21
American Radio Systems Corp. 9.00% 2006 17,470 18,693 .75
Antenna TV, SA 9.00% 2007 8,000 8,060 .33
Big City Radio, Inc. 0%/11.25% 2005 (1),(2) 13,000 9,506 .39
Chancellor Radio Broadcasting Co.:
9.375% 2004 14,500 15,443
8.125% 2007(1) 9,500 9,666
8.75% 2007 9,350 9,818 1.43
EZ Communications, Inc. 9.75% 2005 3,250 3,583 .14
Falcon Holding Group, LP:
8.375% 2010(1) 21,250 13,457
0%/9.285% 2010(1),(2) 10,500 10,472 .98
Gray Communications Systems, Inc. 10.625% 2006 6,870 7,454 .29
Grupo Televisa, SA:
0%/13.25% 2008(2) 1,000 780 .03
Newsquest Capital PLC:
11.00% 2006 3,150 3,528
Series B, 11.00% 2006 4,050 4,536 .33
Radio One, Inc. 7.00%/12.00% 2004(1),(2) 4,750 4,845 .20
STC Broadcasting, Inc. 11.00% 2007(1) 3,000 3,311 .14
Sun Media Corp.:
9.50% 2007 8,386 9,057
9.50% 2007 2,434 2,617 .48
TransWestern Publishing Co. 9.625% 2007(1) 6,750 7,121 .29
Young Broadcasting Inc.:
10.125% 2005 3,500 3,780
8.75% 2007 2,000 2,055 .24
----------- --------
160,885 6.56
----------- --------
Cellular, Paging & Wireless
Communications - 17.67%
Cellnet Data Systems, Inc., Units, 0%/14.00% 2007(2) 53,036 28,374 1.16
Cellular Communications Intl., Inc. 0%/9.50% 2005(1),(2) DKr21,000 14,857 .61
Cellular Communications of Puerto Rico, Inc. 10.00% 2007 $17,000 16,915 .69
Centennial Cellular Corp.:
8.875% 2001 17,000 17,425
10.125% 2005 2,500 2,769 .82
Clearnet Communications Inc. 0%/11.75% 2007(2) C$52,375 24,921 1.02
Comcast Cellular Holdings, Inc. 9.50% 2007(1) $11,500 12,075 .49
Comunicacion Celular SA 0%/13.125% 2003(2) 16,000 12,440 .51
Conecel Holdings Ltd., Series A, Units 14.00% 2000(1) 5,500 5,803 .24
Crown Castle Intl. 0%/10.625% 2007(1),(2) 11,250 7,636 .31
Esat Telecom Group PLC 0%/12.50% 2007(2) 11,250 8,381 .34
Geotek Communications, Inc. 0%/15.00% 2005(2) 1,000 450 .02
Globalstar, LP 11.375% 2004 3,000 3,150 .13
McCaw Intl. Ltd. (owned by Nextel Communications, Inc.)
10%/15.00% 2008(2) 17,625 11,721 .39
MobileMedia Communications, Inc.:(3)
0%/10.50% 2003(2) 12,700 1,079
9.375% 2007 3,250 366 .06
Mobile Telecomm 13.50% 2002 17,875 21,048 .86
Netia Holdings BV:
10.25% 2007(1) 4,125 4,238 .33
0%/11.25% 2007(1),(2) 5,750 3,924
NEXTEL Communications, Inc.:
0%/9.75% 2004(2) 1,750 1,684
0%/10.125% 2004(2) 2,000 1,940
0%/9.75% 2007(2) 13,500 8,775
0%/10.65% 2007(2) 11,000 7,370
0%/9.95% 2008(1),(2) 38,000 24,273 1.80
NEXTEL Intl., Inc.(owned by Nextel Communications, Inc.)
0%/12.125% 2008(1),(2) 16,000 9,600 .39
Omnipoint Corp.:
12.00% 2000(4) 12,500 12,500
8.875% 2006(1) 16,500 16,541
11.625% 2006 24,750 27,225
11.625% 2006 4,550 5,005 2.50
Orion Network Systems, Inc. Units 11.25% 2007 25,475 29,869 1.22
PageMart Wireless, Inc. 0%/11.25% 2008(2) 17,000 10,327 .42
Pinnacle Holdings Inc. 0%/10.00% 2008(1),(2) 6,700 4,204 .17
Powertel, Inc. (formerly InterCel, Inc.):
0%/12.00% 2006(2) 13,500 10,328
11.125% 2007 7,500 8,175 .75
PriCellular Wireless Corp.:
14.00% 2001 6,000 6,600
12.25% 2003 14,710 15,740
10.75% 2004 4,000 4,500 1.08
PTC International Finance BV 0%/10.75% 2007(2) 16,300 11,329 .46
Sprint Spectrum LP, Sprint Spectrum Finance Corp. 11.00% 2006 1,000 1,155 .05
Telesystems International, Inc. 0%/13.25% 2007(1),(2) 3,975 2,783 .11
Teletrac, Inc., Units, 14.00% 2007 11,050 10,564 .43
Vanguard Cellular Systems, Inc. 9.375% 2006 2,000 2,110 .09
Western Wireless Corp. 10.50% 2006 3,000 3,270 .13
----------- --------
433,439 17.67
----------- --------
Construction & Housing - 0.38%
M.D.C. Holdings, Inc. 8.375% 2008 9,250 9,296 .38
----------- --------
Diversified Media, Cable Television &
Telecommunications - 17.43%
Adelphia Communications Corp.:
Series B, 9.25% 2002 15,000 15,600
10.50% 2004 9,000 9,878 1.04
Allegiance Telecom, Inc., Units, 0%/11.75% 2008(1),(2) 5,000 2,900 .12
Cablevision Systems Corp.:
8.125% 2009 9,500 9,951
9.875% 2013 7,000 7,735 .72
CEI Citicorp Holdings SA 11.25% 2007(1) 500 458 .02
Century Communications Corp.:
8.75% 2007 4,000 4,160
0% 2008(1) 16,000 6,960 .45
COLT Telecom Group PLC, Units:
0%/12.00% 2006(2) 18,250 14,509
8.875% 2007 DM15,000 8,996 1.29
10.125% 2007 Pounds4,500 8,052
Comcast Corp. 10.25% 2001 3,200 3,525 .14
Comcast UK Cable Partners Ltd. 0%/11.20% 2007(2) $20,750 17,222 .70
Comtel Brasileira Ltda. 10.75% 2004(1) 3,800 3,944 .16
DIVA Systems Corp., Units, 0%/12.65% 2008(1),(2) 4,000 2,200 .09
Fox Kids Worldwide, Inc.:
9.25% 2007(1) 1,500 1,508
0%/10.25% 2007(1),(2) 1,750 1,116 .11
Fox/Liberty Networks, LLC:
8.875% 2007 7,500 7,781
0%/9.75% 2007(2) 15,250 10,446 .74
FrontierVision 11.00% 2006 2,500 2,813 .11
Global TeleSystems Group, Inc. 9.875% 2005 6,000 6,180 .25
Globo Comunicacoes E Participacoes LTDA.:
10.50% 2006(1) 10,500 10,689
10.50% 2006 2,000 2,036 .52
GST Equipment Funding, Inc. 13.25% 2007 9,000 10,980 .45
Heartland Wireless Communications, Inc. 13.00% 2003(4) 3,500 735 .03
Hermes Euro Railtel BV 11.50% 2007 7,000 7,980 .33
Intermedia Communications Inc. 0%/11.25% 2007(1),(2) 3,000 2,250 .09
IXC Communications, Inc. 12.50% 2005 4,500 5,393 .22
Jones Intercable, Inc. 9.625% 2002 2,000 2,140 .09
KMC Telecom Holdings, Inc., Units, 0%/12.50% 2008(1),(2) 18,000 10,710 .44
Lenfest Communications, Inc.:
8.375% 2005 6,000 6,210
7.625% 2008(1) 6,750 6,767
8.25% 2008(1) 3,250 3,296 .66
Multicanal Participacoes SA 12.625% 2004 6,000 6,555 .27
Nextlink Communications, Inc.:
9.625% 2007 11,000 11,660
9.00% 2008(1) 11,250 11,559 .96
Nextlink Communications LLC, Nextlink Capital, Inc. 12.50% 2006(1) 1,750 2,012 .08
NTL Inc.(formerly Intl. CableTel Inc.):
0%/10.875% 2003(2) 21,175 21,069
Series B, 10.00% 2007 5,750 6,239
9.50% 2008(1) Pounds7,500 12,824
9.75% 2008(1) $5,500 3,603
0%/10.75% 2008(1)(2) Pounds24,500 25,810
0%/12.75% 2008(2) $1,000 858 2.87
Qwest Communications Intl., Inc.:
0%/9.475% 2007(2) 6,000 4,410
10.875% 2007 5,000 5,788
0%/8.29% 2008(1),(2) 11,000 7,783 .73
RBS Participacoes SA 11.00% 2007(1) 4,500 4,579 .19
RCN Corp.:
10.00% 2007 6,250 6,672
0%/11.125% 2007(2) 4,500 3,004 .39
Teleport Communications Group Inc. 9.875% 2006 3,000 3,427 .14
TeleWest PLC:
9.625% 2006 9,000 9,495
0%/11.00% 2007(2) 6,175 4,971 .59
Teligent, Inc. 11.50% 2007 8,000 8,400 .34
TEVECAP SA 12.625% 2004 7,875 7,954 .32
Verio Inc.:
Units, 13.50% 2004(1) 3,000 3,480
10.375% 2005(1) 2,500 2,600 .25
Viacom International Inc.:
10.25% 2001 4,000 4,389
7.75% 2005 2,000 2,098 .26
Videotron Holdings PLC (owned by Cable and Wireless PLC)
0%/11.125% 2004(2) 21,000 20,297 .83
WorldCom, Inc. 9.375% 2004 10,111 10,715 .44
----------- --------
427,371 17.43
----------- --------
Energy & Related Companies - 4.64%
Abraxas Petroleum Corp. 11.50% 2004 10,250 10,557 .43
Benton Oil and Gas Co.
11.625% 2003 7,000 7,630
9.375% 2007 6,250 6,312 .57
Clark Refining & Marketing, Inc.:
8.375% 2007 1,500 1,522
8.875% 2007 5,000 5,088 .27
Cross Timbers Oil Co. 8.75% 2009 15,000 15,375 .63
Forcenergy Inc.:
9.50% 2006 5,950 6,188
8.50% 2007 3,000 2,948 .37
Gulf Canada Resources Ltd. 9.25% 2004 4,000 4,203 .17
Kelley Oil & Gas Corp. 10.375% 2006 11,225 11,702 .48
Lomak Petroleum, Inc. 8.75% 2007 11,250 11,531 .47
McDermott Inc. 9.375% 2002 5,525 5,916 .24
J. Ray McDermott, SA 9.375% 2006 2,250 2,419 .10
Ocean Energy, Inc. 8.875% 2007 3,500 3,728 .15
Pogo Producing Co. 8.75% 2007 18,000 18,630 .76
----------- --------
113,749 4.64
----------- --------
Food Retailing - 0.76%
Bruno's, Inc. 10.50% 2005 (3) 15,300 2,754 .11
Carr-Gottstein Foods Co. 12.00% 2005 4,000 4,470 .18
Randall's Food Markets, Inc. 9.375% 2007 10,750 11,395 .47
----------- --------
18,619 .76
----------- --------
Forest Products & Paper - 4.67%
Advance Agro PCL 13.00% 2007(1) 10,500 10,710 .44
Container Corp. of America:
10.75% 2002 6,000 6,555
9.75% 2003 18,000 19,327
11.25% 2004 5,500 5,967 1.30
Copamex Industrias, SA de CV 11.375% 2004 4,625 5,064 .21
Graham Packaging Co., GPC Capital Corp. I 8.75% 2008(1) 12,250 12,434
Graham Packaging Holdings Co. 0%/10.75% 2009(1),(2) 15,500 9,843 .91
Grupo Industrial Durango, SA de CV 12.00% 2001 1,000 1,097 .04
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 4,750 4,346
10.00% 2007 6,875 5,689 .41
MAXXAM Group Inc. 11.25% 2003 3,000 3,172 .13
Norampac Inc.:
9.375% 2008(1) C$12,000 8,819
9.50% 2008(1) $10,500 10,920 .80
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002(1) 7,500 6,000
10.75% 2007(1) 1,850 1,531
10.75% 2007 1,925 1,593 .37
U.S. Timberlands Klamath Falls, LLC, U.S. Timberlands Finance Corp.
9.625% 2007 1,500 1,560 .06
----------- --------
114,627 4.67
----------- --------
Health & Personal Care - 4.46%
Integrated Health Services, Inc.:
10.25% 2006 11,250 12,150
Series A:
9.50% 2007 16,250 17,286
9.25% 2008 14,500 15,279 1.82
Mariner Health Group, Inc. 9.50% 2006 10,000 10,600 .43
Paracelsus Healthcare Corp. 10.00% 2006 30,825 31,904 1.30
Sun Healthcare Group, Inc. 9.50% 2007(1) 3,000 3,150 .13
Tenet Healthcare Corp.:
8.00% 2005 4,000 4,100
8.625% 2007 2,500 2,594 .27
Unison HealthCare Corp.:
13.00% 1999(1),(3) 2,000 1,840
13.00% 2006(1),(3) 8,750 5,031 .28
Universal Health Services, Inc. 8.75% 2005 5,100 5,387 .23
----------- --------
109,321 4.46
----------- --------
Independent Power Producers - 0.81%
California Energy Co., Inc. 10.25% 2004 15,000 16,105 .66
CE Casecnan Water and Energy Co., Inc., Series B, 11.95% 2010 3,500 3,675 .15
----------- --------
19,780 .81
----------- --------
Leisure, Tourism & Restaurants - 4.98%
AMF Group Inc.:
10.875% 2006 18,500 20,396 1.29
0%/12.25% 2006(2) 13,793 11,241
Boyd Gaming Corp.:
9.25% 2003 12,750 13,610
9.50% 2007 6,000 6,405 .82
CLN Holdings Co. 0% 2001 23,100 18,711 .76
FelCor Suites LP 7.375% 2004(1) 8,250 8,314 .34
Foodmaker, Inc.
9.75% 2002 6,450 6,611 .27
Friendly Ice Cream Corp. 10.50% 2007 7,000 7,385 .30
Hard Rock Hotel, Inc. 9.25% 2005(1) 1,500 1,523 .06
HMH Properties, Inc., Series B, 8.875% 2007 2,750 2,894 .12
KSL Recreation Group Inc. 10.25% 2007(1) 4,500 4,916 .20
Premier Parks Inc.:
9.25% 2006(1) 2,500 2,556
10.00% 2008(1) 8,000 5,080 .31
Rio Hotel & Casino, Inc.:
10.625% 2005 6,400 6,992
9.50% 2007 1,250 1,353 .34
Sun International Hotels Ltd.,
Sun International North America, Inc. 9.00% 2007 4,000 4,240 .17
----------- --------
122,227 4.98
----------- --------
Manufacturing & Materials - 9.81%
AK Steel Corp. 9.125% 2006 5,500 5,871 .24
Altos Hornos de Mexico, SA de CV:
11.375% 2002 3,500 3,622
11.875% 2004 4,250 4,399 .33
Anchor Glass Container Corp.:
11.25% 2005(1) 17,250 18,975
9.875% 2008(1) 8,250 8,333 1.11
Consumers International Inc. 10.25% 2005(1) 8,250 9,075 .37
DGS International Finance Co. BV:
10.00% 2007(1) 6,250 5,531
10.00% 2007 275 243 .24
Doe Run Resources Corp. 11.25% 2005(1) 9,500 9,785 .40
Fage Dairy Industry SA 9.00% 2007(1) 9,250 8,857 .36
Fairchild Semiconductor Corp. 10.125% 2007 11,750 12,220 .50
Flextronics Intl., Ltd. 8.75% 2007(1) 18,500 18,639 .76
Impress Metal Packaging Holdings BV 9.875% 2007(1) DM16,150 9,293 .38
Kaiser Aluminum & Chemical Corp.:
9.875% 2002 $5,750 5,951
12.75% 2003 5,750 6,131
Series B, 10.875% 2006 2,750 0 .49
Key Plastics, Inc. 10.25% 2007 9,650 10,229 .42
Lifestyle Furnishings International Ltd. 10.875% 2006 17,005 19,131 .78
Printpack, Inc.:
Series B, 9.875% 2004 5,750 6,210
10.625% 2006 13,730 14,725 .85
Samsung Electronics Co., Ltd. 7.45% 2002(1) 3,000 5,460 .22
Standard Commercial Corp. 8.875% 2005 13,750 13,819 .56
Tekni-Plex, Inc. 9.25% 2008(1) 1,000 1,027 .04
Texas Petrochemicals Corp. 11.125% 2006 12,950 14,180 .58
Therma-Wave, Inc. 10.625% 2004(1) 10,250 10,660 .43
United Defense Industries, Inc. 8.75% 2007 5,750 5,894 .24
Westinghouse Air Brake Co. 9.375% 2005 7,250 7,649 .31
Zilog, Inc. 9.50% 2005(1) 5,000 4,875 .20
----------- --------
240,784 9.81
----------- --------
Miscellaneous Services - 2.49%
Allied Waste North America, Inc. 10.25% 2006 27,910 30,980 1.26
EarthWatch Inc., Units, 12.50% 2001(1),(3),(4) 6,000 4,800 .19
Iron Mountain, Inc.:
10.125% 2006 3,000 3,315
8.75% 2009 3,120 3,214 .27
Petro Stopping Centers, LP, Petro Financial Corp. 10.50% 2007(1) 17,500 18,900 .77
----------- --------
61,209 2.49
----------- --------
Protection Services - 0.71%
Borg-Warner Security Corp. 9.625% 2007 6,250 6,563 .27
Protection One Alarm Monitoring, Inc.0%/13.625% 2005(2) 9,500 10,783 .44
----------- --------
17,346 .71
----------- --------
Real Estate - 0.17%
B.F. Saul Real Estate Investment Trust
11.625% 2002 4,000 4,230 .17
----------- --------
Textiles & Apparel - 0.13%
Tultex Corp. 10.625% 2005 1,500 1,569 .07
WestPoint Stevens Inc. 8.75% 2001 1,500 1,560 .06
----------- --------
3,129 .13
----------- --------
Transportation - 1.66%
Continental Airlines, Inc. 9.50% 2001 4,000 4,260 .17
Hayes Wheels Intl., Inc. 9.125% 2007 2,000 2,110 .09
Kitty Hawk, Inc. 9.95% 2004(1) 6,000 6,240 .25
Northwest Airlines, Inc. 7.625% 2005(1) 5,000 4,973 .20
Teekay Shipping Corp. 8.32% 2008 12,500 12,750 .52
USAir, Inc.:
9.625% 2001 2,000 2,085
Pass-through trust, Series 1993-A3,
10.375% 2013(5) 7,400 8,293 .43
----------- --------
40,711 1.66
----------- --------
Private Issue Collateralized Mortgage/Asset-Backed
Obligations(5) - 0.94%
DR Structured Finance Corp.,
Series 1994 K-2, 9.35% 2019 9,855 10,422 .43
Kmart Corp. 9.78% 2020 5,500 6,049 .25
Resolution Trust Corp.,
Series 1993-C1, Class E, 9.50% 2024 137 138 .01
Trinity Re, Ltd. 10.08% 2009/98(1),(6) 6,100 6,104 .25
----------- --------
22,713 .94
----------- --------
Non-U.S. Governments and Governmental
Authorities - 2.59%
Argentina (Republic of):
8.75% 2002 1,000 921
6.688% 2005(6) 950 877
11.00% 2006 925 1,034
11.75% 2007(1) ARP6,380 6,652
11.375% 2017 $4,250 4,824
9.75% 2027 3,675 3,638 .74
Brazil (Federal Republic of):
Debt Conversion Bond 6.938% 2012(6) 750 605
Capitalization Bond 8.00% 2014(7) 285 239
Capitalization Bearer Bond 8.00% 2014(7) 570 480 .06
Ecuador (Republic of) Past Due Interest Bonds:
Registered 6.625% 2015(6) 5,981 3,872
Bearer 6.625% 2015(6) 417 270
Registered 6.625% 2025 250 186 .18
New Zealand Index-Linked 4.66% 2016(6),(8) NZ$4,155 2,103 .09
Panama (Republic of) Interest Reduction Bonds:
3.75% 2014(1)(6) $11,500 9,217
6.563% 2016(6) 514 438
Global 8.875% 2027 250 251 .40
Peru (Republic of):
Front Loaded Interest Reduction Bond 3.25% 2017(1),(6) 500 315
Past Due Interest Bond 4.00% 2017 750 516 .03
Philippines (Republic of) 8.75% 2016 2,000 1,926 .08
Poland (Republic of):
Past Due Interest Bond 4.00% 2014(8) 2,500 2,244
Treasury Bill 1998 PLZ22,370 5,966 .33
Thailand (Kingdom of) 7.75% 2007 $1,000 958 .04
United Mexican States:
Variable Rate Discount, Series A, 0% 2003 768 0
Collateralized Eurobond, Series A, 6.693% 2019(6) 500 472
Government:
11.375% 2016 6,195 7,295
11.50% 2026 5,125 6,246 .57
Venezuela (Republic of):
Front Loaded Interest Reduction Bond 6.50% 2007(6) 1,190 1,086 .03
6.75% 2007(6) 857 778
----------- --------
63,409 2.59
----------- --------
U.S. Treasury Obligations - 2.74%
6.875% 1999 19,000 19,306
7.50% 2001 19,000 20,125
8.00% 2001 5,000 5,330
6.625% 2002 3,000 3,101
5.75% 2003 6,000 6,022
11.625% 2004 10,000 13,200 2.74
-------- --------
67,084 2.74
----------- --------
Total Bonds & Notes (cost: $2,019,715,000) 2,107,243 85.94
----------- --------
Number of
Stocks (Common & Preferred) - 7.63% Shares
Acme Intermediate, warrants, expire 2005 (1),(9) 11,939 716 .03
Acme Television, LLC(1),(9) 725 725 .03
Adelphia Communications, Corp. preferred, Series B, 13.00% 2009 20,000 2,380 .10
American Radio Systems Corp., exchangeable preferred(7),(9) 161,966 18,950 .77
CalEnergy Co., Inc.(9) 15,000 424 .02
CellNet Data Systems, Inc.(4),(9) 256,000 2,253 .09
CellNet Data Systems, Inc., warrants, expire 8/3/98(1),(9) 47,786 1,195
CellNet Data Systems, Inc., warrants, expire 9/7/98(1),(9) 17,250 431 .07
Cellular Communications International, Inc.(9) 32,800 2,230 .09
Chancellor Radio Broadcasting Co.,
exchangeable preferred(1),(5) 126,000 15,120 .62
Chevy Chase Preferred Capital Corp., exchangeable preferred 214,000 11,476 .46
COLT Telecom Group, warrants, expire 2006(1) 18,250 2,464 .10
Comunicacion Celular SA,
warrants, expire 2003(9) 15,000 1,050 .04
Conecel Holdings Ltd., warrants, expire 2000(1) 74,250 275 .01
EarthWatch Inc., 12.00% convertible preferred(1),(4),(9) 675,000 338 .01
Esat Holdings Ltd., warrants, expire 2007(1),(9) 11,250 394 .02
Fuji JGB Investment LLC, preferred, Series A, 9.87% 2049(1) 2,500 2,475 .10
Globalstar Telecommunications Ltd., warrants, expire 2004(9) 3,000 405 .02
Heartland Wireless Communications, Inc., warrants, expire 2000(1),(9) 22,800 0 .00
IBJ Preferred Capital, Co. LLC 8.79% 2049(1) 7,150 6,906 .28
Integrated Health Services, Inc. 112,500 4,423 .18
IXC Communications, Inc., preferred, 12.50% 2009(7),(9) 6,903 8,560 .34
Jacor Communications, Inc.(9) 70,000 4,130 .17
Kelley Oil & Gas Corp., convertible preferred(9) 170,000 4,250 .17
McCaw International, Ltd., warrants, expire 2007(1),(9) 8,500 21 .00
Mobile Telecommunications Technologies Corp., convertible preferred 100,000 3,650 .15
NEXTEL Communications, Inc., Class A(7),(9) 13,942 471
NEXTEL Communications, Inc.,warrants, expire 1999(4),(7),(9) 21,250 229
NEXTEL Communications, Inc., preferred, 13.00%(7),(9) 13,439 15,757
NEXTEL Communications, Inc. 11.125% 2010(1),(7),(9) 27,500 29,150 1.88
Nortel Inversora SA, Class A, preferred (1),(4) 1,057,146 13,753 .55
(American Depositary Receipts)
Omnipoint Corp.(1),(9) 278,001 8,201 .33
Orion Network Systems, Inc., warrants, expire 2007(9) 25,475 453 .02
Protection One Alarm Monitoring, Inc., warrants, expire 2005(1),(9) 30,400 372 .02
SB Treasury Company, LLC, Series A, 9.40% 2049(1) 2,500 2,587 .11
Teletrac, Inc., warrants, expire 2007(1),(9) 11,050 553 .02
Time Warner Inc., 10.25% exchangeable preferred 3,268 3,660 .15
Tokai Preferred Capital Co. LLC, Series A, 9.98% 2049 15,000 15,225 .62
Verio Inc., warrants, expire 2004(1),(9) 24,000 528 .02
WorldCom, Inc.(9) 21,000 904 .04
----------- --------
187,084 7.63
Total Stocks (cost: $164,894,000) ----------- --------
Principal
Amount
(000)
Convertible Debentures - 1.25%
Global Telesystems Group 8.75% 2000(1) $7,500 17,250 .70
Integrated Health Services, Inc. 6.00% 2003(1) 6,500 7,865 .32
Kelley Oil & Gas Corp.:
7.875% 1999 3,245 3,180
8.50% 2000 2,291 2,268 .23
----------- --------
Total Convertible Debentures (cost: $19,380,000) 30,563 1.25
----------- --------
Miscellaneous - 0.04%
Other equity-type securities in initial period of acquisition 1,250 1,000 .04
----------- --------
Short-Term Securities
Corporate Short-Term Notes - 4.04%
Coca Cola Co.:
5.49% due 4/7/98 3,100 3,096
5.53% due 4/7/98 7,000 6,992
5.53% due 4/9/98 1,000 999
5.51% due 4/17/98 9,600 9,575 .85
Gannett Co. 5.53% due 4/14/98 20,000 19,957 .81
General Electric Capital Corp. 6.13% due 4/1/98 40,720 40,713 1.65
(H.J.) Heinz Co. 5.48% due 4/8/98 17,900 17,878 .73
----------- --------
Total Short-Term Securities (cost: $99,212,000) 99,210 4.04
----------- --------
Total Investment Securities (cost: $2,303,201,000) 2,425,100 98.90
Excess of cash and receivables over payables 26,886 1.10
----------- --------
$2,451,986 100.00%
Net Assets =========== ========
(1)Purchased in a private placement transaction; resale may
be limited to qualified institutional
buyers; resale to the public may require registration.
(2)Step bond; coupon rate will increase at a later date.
(3)Company not making interest payments, bankruptcy
proceedings pending.
(4)Valued under procedures established by the Board of Trustees.
(5)Pass-through securities backed by a pool of mortgages or
other loans on which principal payments are periodically
made. Therefore, the effective maturity
is shorter than the stated maturity.
(6)Coupon rate may change periodically.
(7)Payment in kind. The issuer has the option of paying
additional securities in lieu of cash.
(8)Index-linked bond, which is a floating rate bond
whose principal amount moves with a
government retail price index.
(9)Non-income-producing security.
See Notes to Financial Statements
</TABLE>
<TABLE>
American High-Income Trust
Financial Statements
Statement of Assets and Liabilities
at March 31, 1998 (dollars in thousands) (Unaudited)
<S> <C> <C>
Assets:
Investment securities
(cost: $2,303,201) $ 2,425,100
Cash 4,183
Receivables for--
Sales of investments $ 25,177
Sales of fund's shares 11,433
Forward currency contracts 558
Accrued dividends and interest 42,150 79,318
----------- -----------
2,508,601
Liabilities:
Payables for--
Purchases of investments 51,523
Repurchases of fund's shares 2,079
Dividends on fund's shares 1,524
Management services 1,022
Accrued expenses 467 56,615
----------- -----------
Net Assets at March 31, 1998 --
Equivalent to $15.59 per share on
157,307,992 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $ 2,451,986
===========
Statement of Operations
for the six months ended March 31, 1998 (Unaudited)
(dollars in thousands)
Investment Income:
Income:
Dividends $ 2,694
Interest 104,183 $ 106,877
-----------
Expenses:
Management services fee 5,117
Distribution expenses 2,879
Transfer agent fee 633
Reports to shareholders 31
Registration statement and prospectus 274
Postage, stationery and supplies 176
Trustees' fees 14
Auditing and legal fees 45
Custodian fee 14
Taxes other than federal income tax 30
Other expenses 53 9,266
----------- -----------
Net investment income 97,611
-----------
Realized Gain and Increase in Unrealized
Appreciation on Investments:
Net realized gain 25,309
Net unrealized appreciation on
Investments 11,860
Open forward currency contracts 485 12,345
----------- -----------
Net realized gain and unrealized
appreciation on investments 37,654
-----------
Net Increase in Net Assets
Resulting from Operations $ 135,265
===========
Statement of Changes in Net Assets
(dollars in thousands)
Six months
ended Year ended
March 31, 1998* September 30, 1997
Operations: ----------- -----------
Net investment income $ 97,611 $ 151,054
Net realized gain on investments 25,309 42,701
Net increase in unrealized appreciation
on investments 12,345 56,861
----------- -----------
Net increase in net assets
resulting from operations 135,265 250,616
----------- -----------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (97,383) (147,273)
Distributions from net realized
gain on investments (47,160) (1,653)
----------- -----------
Total dividends and distributions (144,543) (148,926)
----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
31,473,232 and 52,744,058
shares, respectively 486,696 800,316
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on
investments: 6,803,315 and
6,173,899 shares, respectively 103,970 93,692
Cost of shares repurchased:
15,332,265 and 28,680,906
shares, respectively (237,230) (434,766)
----------- -----------
Net increase in net assets
resulting from capital share
transactions 353,436 459,242
----------- -----------
Total Increase in Net Assets 344,158 560,932
Net Assets:
Beginning of period 2,107,828 1,546,896
----------- -----------
End of period (including undistributed
net investment income: $10,387
and $10,159, respectively) $ 2,451,986 $ 2,107,828
=========== ===========
*Unaudited
See Notes to Financial Statements
</TABLE>
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 fund 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. The following paragraphs
summarize the significant accounting policies consistently followed by the fund
in the preparation of its financial statements:
Equity securities, including depositary receipts, are valued at the last
reported sale price on the exchange or market on which such securities are
traded, as of the close of business on the day the securities are being valued
or, lacking any sales, at the last available bid price. In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the investment adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market. Fixed-income securities are valued at prices
obtained from a pricing service, when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type.
Securities with original maturities of one year or less having 60 days or less
to maturity are amortized to maturity based on their cost if acquired within 60
days of maturity or, if already held on the 60th day, based on the value
determined on the 61st day. Forward currency contracts are valued at the mean
of their representative quoted bid and asked prices.
Assets or liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates at the end of the
reporting period. Purchases and sales of securities and income and expenses are
translated into U.S. dollars at the prevailing market rates on the dates of
such transactions. The effects of changes in foreign currency exchange rates on
investment securities are included with the net realized and unrealized gain or
loss on investment securities.
Securities and assets for which representative market quotations are not
readily available are valued at fair value as determined in good faith by a
committee appointed by the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. 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 and premiums on
securities purchased are amortized. Dividends to shareholders are declared
daily after the determination of the fund's net investment income and are paid
to shareholders monthly. Distributions paid to shareholders are recorded on the
ex-dividend date.
The fund may enter into forward currency contracts, which represent agreements
to exchange currencies of different countries at specified future dates at
specified rates. The fund enters into these contracts to reduce its exposure to
fluctuations in foreign exchange rates arising from investments denominated in
non-U.S. currencies. The fund's use of forward currency contracts involves
market risk in excess of the amount recognized in the statement of assets and
liabilities. The contracts are recorded in the statement of assets and
liabilities at their net unrealized value. The fund records realized gains or
losses at the time the forward contract is closed or offset by a matching
contract. The face or contract amount in U.S. dollars reflects the total
exposure the fund has in that particular contract. Risks may arise upon
entering these contracts from the potential inability of counterparties to meet
the terms of their contracts and from possible movements in non-U.S. exchange
rates and securities values underlying these instruments.
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 March 31, 1998, net unrealized appreciation on investments, excluding
forward currency contracts, for book and federal income tax purposes aggregated
$121,900,000, of which $164,686,000 related to appreciated securities and
$42,786,000 related to depreciated securities. During the six months ended
March 31, 1998, the fund realized, on a tax basis, a net capital gain of
$24,965,000 on securities transactions. Net gains related to non-U.S. currency
transactions of $352,000 were treated as ordinary income for federal income tax
purposes. The cost of portfolio securities, excluding forward currency
contracts, for book and federal income tax purposes was $2,303,201,000 at March
31, 1998.
3. The fee of $5,117,000 for management services was incurred pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% of the first $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 six months ended March 31,
1998, distribution expenses under the Plan were $2,879,000.
As of March 31, 1998, accrued and unpaid distribution expenses were $378,000.
American Funds Service Company (AFS), the transfer agent for the fund, was paid
a fee of $633,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $1,389,000(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 who are unaffiliated with CRMC may elect to defer part or all of the
fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of March 31, 1998,
aggregate amounts deferred and earnings thereon were $60,000.
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 March 31, 1998, accumulated undistributed net realized gain on
investments was $17,745,000 and paid-in capital was $2,302,188,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $900,577,000 and $580,124,000, respectively, during
the six months ended March 31, 1998.
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 $14,000 includes $45,000 that was paid by these credits
rather than in cash.
At March 31, 1998, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
<TABLE>
Contract Amount U.S. Valuation at 3/31/98
------------------------------------------------------------
<S> <C> <C> <C> <C>
Unrealized
Appreciation
Non-U.S. Currency Sales Contracts Non-U.S. U.S. Amount
- --------------------------------------------------------------------------------------------------
German Deutsche Marks DM30,952,000 $17,200,000 $16,774,000 $426,000
expiring 5/5 to 6/23/98
European Currency Units ECU12,576,000 13,688,000 13,556,000 $132,000
expiring 6/16/98 ------------------------------------------
$30,888,000 $30,330,000 $558,000
</TABLE>
<TABLE>
Per-Share
Data and Ratios
Six months
ended Year ended
March 31, September 30
1998 (1) 1997 1996 1995 1994 1993
-------- -------- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $15.69 $14.86 $14.30 $13.97 $15.18 $14.58
-------- -------- --------------------------------
Income from Investment
Operations:
Net investment income .67 1.26 1.29 1.33 1.25 1.28
Net realized and
unrealized gain
(loss) on investments .25 .83 .59 .39 (.99) .74
-------- -------- --------------------------------
Total income from
investment operations .92 2.09 1.88 1.72 .26 2.02
-------- -------- --------------------------------
Less Distributions:
Dividends from net
investment income (.68) (1.24) (1.32) (1.32) (1.21) (1.29)
Distributions from net
realized gains (.34) (.02) - (.07) (.26) (.13)
-------- -------- --------------------------------
Total distributions (1.02) (1.26) (1.32) (1.39) (1.47) (1.42)
-------- -------- --------------------------------
Net Asset Value, End of Period $15.59 $15.69 $14.86 $14.30 $13.97 $15.18
======== ======== ================================
Total Return (2) 6.11%(3) 14.66% 13.68% 13.34% 1.60% 14.59%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $2,452 $2,108 $1,547 $1,111 $835 $707
Ratio of expenses to average
net assets .41%(3) .82% .87% .89% .86% .87%
Ratio of net income to
average net assets 4.36%(3) 8.35% 8.90% 9.72% 8.63% 8.60%
Portfolio turnover rate 27.55 %(3) 53.55 % 39.74% 29.56% 42.03% 44.37%
(1) Unaudited
(2) Excludes maximum sales charge of 4.75%.
(3) Based on operations for the period shown
and, accordingly, not representative of a full year.
</TABLE>
THE AMERICAN FUNDS GROUP(R) SHAREHOLDER SERVICES
SERVICES TO MATCH YOUR LIFESTYLE
AMERICAN FUNDSLINE(R) AND FUNDSLINE ONLINE(SM) - Use our 24-hour phone service
or visit our Web site to get fund information and handle a variety of
transactions - all on your timetable.
AMERICAN FUNDSLINK(SM) - Link your American Funds accounts with your bank
account. You can have fund dividends or automatic fund withdrawals deposited
directly into your bank account. Or you can invest money directly from your
bank account into your fund account on either a systematic or on-demand basis.
OTHER AUTOMATIC TRANSACTIONS - You can reinvest dividends into the same fund or
another fund, make withdrawals and exchange shares between funds - quarterly,
monthly or during the months you specify.
DIVIDEND AND CAPITAL GAIN OPTIONS - Use your dividend and capital gain
distributions to meet your changing needs. You may:
* Automatically reinvest distributions back into the fund at no sales
charge.
* Cross-reinvest dividends into another fund at no sales charge.
(Certain restrictions apply.)
* Have dividends mailed or sent electronically to you or to someone else.
EXCHANGE PRIVILEGES - When it's time to adjust your portfolio to meet your
changing investment goals, you can easily exchange shares from one American
Fund to another - usually without paying a sales charge. Certain restrictions
apply and there generally are tax consequences. Please consult your financial
adviser and read the prospectus before you exchange shares.
QUESTIONS?
For more information about these services or any of the American Funds, please
read a current prospectus, which you may obtain from your financial adviser. To
contact American Funds:
* Shareholder Services Representative, 8 a.m. to 8 p.m. ET - 800/421-0180
* American FundsLine, 24-hour automated telephone system - 800/325-3590
* MFundsLine OnLine, Web site - WWW.AMERICANFUNDS.COM
* By mail - Write to the service center nearest you. If you live outside
the U.S., please write to the Western Service Center.
THESE SERVICES ARE SUBJECT TO CHANGE OR TERMINATION.
[map of the United States of America]
WESTERN SERVICE
CENTER
American Funds Service Company
P.O. Box 2205
Brea, California
92822-2205
WEST CENTRAL
SERVICE CENTER
American Funds Service Company
P.O. Box 659522
San Antonio, Texas
78265-9522
EAST CENTRAL
SERVICE CENTER
American Funds Service Company
P.O. Box 6007
Indianapolis, Indiana
46206-6007
EASTERN
SERVICE CENTER
American Funds Service Company
P.O. Box 2280
Norfolk, Virginia
23501-2280
[The American Funds Group(r)]
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 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
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 June 30, 1998, this report must be accompanied by an American
Funds Group Statistical Update for the most recently completed calendar
quarter.
Printed on recycled paper
Litho in USA SG/FS/3761
Lit. No. AHIT-013-0598
