[THE AMERICAN FUNDS GROUP(R)]
AMERICAN HIGH-INCOME TRUST
Semi-Annual Report
for the six months ended March 31, 1999
[cover: block grid lines]
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 29 mutual funds in The American Funds
Group,(r) the nation's third-largest mutual fund family. For more than six
decades, Capital Research and Management Company, the American Funds adviser,
has invested with a long-term focus based on thorough research and attention to
risk.
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, 1999 (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):
<TABLE>
<CAPTION>
Average Annual
Total Return Compound Return
<S> <C> <C>
Ten Years +165.96% +10.28%
Five Years +49.00 +8.30
One Year -5.36 -
</TABLE>
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.
INVESTING FOR SHORT PERIODS MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT
FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER
ENTITY.
PREPARING FOR THE YEAR 2000
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all significant computer systems to process date-related
information properly following the turn of the century. Testing of these and
other systems with business partners, vendors and other service providers will
continue through much of 1999. We will continue to keep you up to date in our
regular publications. If you'd like more detailed information, call Shareholder
Services at 800/421-0180, ext. 21, or visit our Web site at
www.americanfunds.com.
FELLOW SHAREHOLDERS:
A combination of low inflation, rising bond prices and recovery in some
overseas economies helped American High-Income Trust earn solid returns in the
half-year ended March 31, 1999.
The value of your holdings rose 8.0% if you reinvested your distributions, as
most shareholders do. The fund outpaced the 5.7% average total return of the
305 high current yield bond funds tracked by Lipper, Inc., as well as the 4.4%
increase in the Credit Suisse First Boston High Yield Index, which closely
mirrors your fund's investment universe. Higher grade bonds, as measured by the
Salomon Smith Barney Broad Investment-Grade Bond Index, declined 0.1%. Both
indexes are unmanaged.
Investors who took their dividends in cash had a 4.8% income return (9.6%
annualized) and saw the value of their holdings rise 3.1%. The fund paid
monthly dividends totaling 66 cents a share, including a special dividend of
three cents paid in December. Shareholders also received 4.5 cents a share in
capital gains.
[Begin sidebar]
RESULTS AT A GLANCE
<TABLE>
<CAPTION>
Lifetime/2/
TOTAL RETURNS/1/ (for Six Months One Year Annualized
periods ended March 31,
1999)
<S> <C> <C> <C>
American High-Income Trust +8.05% -0.62% +10.67%
Credit Suisse First +4.43 -0.75 +10.43
Boston High Yield Index
Salomon Smith Barney Broad -0.05 +6.50 +8.58
Investment-Grade(BIG) Bond
Index
Lipper High Current Yield +6.44 -1.23 +9.48
Bond Funds Index
</TABLE>
/1/Change in value of investment with dividends and capital gain distributions
reinvested
/2/Since February 19, 1988
30-DAY RATES (as of April 30, 1999)
Yield based on Securities and Exchange Commission formula 8.75%
Distribution rate based on offering price 8.35
Distribution rate based on net asset value 8.77
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.
[End sidebar]
We are naturally pleased with the fund's recent returns but it is important
that you measure them over the long term, and that they be viewed in the
context of unusual volatility in the high-yield corporate bond market. When
American High-Income Trust began its fiscal year on October 1, the high-yield
corporate bond market had been steadily losing ground since late July. The
falling prices were sparked by concerns that economic crises in Asia, Russia
and Latin America would spread to the United States and slow economic growth.
As those concerns intensified, many investors in the United States and other
countries moved assets into U.S. Treasury bonds. This "flight to quality"
increased demand for U.S. Treasury securities, driving their prices higher. At
the same time, investors sold high- yield corporate bonds, sending their prices
lower.
By late fall, the events that had triggered the problems in the high-yield
corporate bond market began to reverse course. The troubled economies in Asia
and Latin America had weathered the worst of the crisis. As a result,
high-yield corporate bonds rebounded and Treasury bonds lost some of their
strength. The rebound in high-yield bond prices coincided with the beginning of
the fund's fiscal year.
When prices are falling, as they were last year, good companies with solid
prospects are often caught in the downward spiral, along with marginal firms.
During the recent downturn, the investment professionals at Capital Research
and Management Company, adviser to American High-Income Trust, took advantage
of the lower values to increase the fund's holdings of bonds that we believe
offer opportunity for good long-term rewards. We added to our holdings in two
of the fund's largest industry sectors - wireless communications and
telecommunications - before these rebounded strongly last fall.
Other sectors, notably oil and health care, lagged the market. Many oil
companies were hurt by the industry's overcapacity and fierce competition. In
the health care field, many hospitals and other health care companies are still
feeling the effects of legislation that reduced Medicare payments.
Judging results over short periods, of course, is never the best test of
investment success. The true measure is the fund's results over the long term
and during periods of market turbulence. Over its lifetime through March 31,
representing several interest rate cycles, American High-Income Trust's 10.7%
average annualized return has outpaced the 10.4% return of the Credit Suisse
First Boston Index and the 9.3% return of the average high-yield fund tracked
by Lipper.
We will continue to monitor global economic and political climates closely as
we focus on finding high-yield bonds that offer long-term opportunity. We look
forward to reporting to you again in six months.
Cordially,
/s/Paul G. Haaga, Jr. /s/David C. Barclay
Paul G. Haaga, Jr. David C. Barclay
Chairman of the Board President
May 14, 1999
We are pleased to announce the election of David C. Barclay as president of
American High-Income Trust. He has served as a portfolio counselor for the fund
for nine years and will continue in that capacity. Abner D. Goldstine, who had
been president since December 1997, was elected vice chairman and will remain a
portfolio counselor.
<TABLE>
<S> <C>
[begin pie chart]
U.S. Corporate Bonds 70%
Non-U.S. Corporate Bond 19%
Non-U.S. Government Bon 2%
Stocks 2%
U.S. Treasuries 2%
Cash & Equivalents 5%
</TABLE>
[end pie chart]
<TABLE>
American High-Income Trust
Investment Portfolio, March 31, 1999
Unaudited Share or
Principal Market Percent
Amounts Value Of Net
Bonds, Notes & Equity Securities (000) (000) Assets
- -------------------------------------------- -------- -------- --------
<S> <C> <C> <C> <C>
WIRELESS COMMUNICATIONS - 20.00%
Nextel Communications, Inc.:
9.75% 2004 $10,750 $11,126
0%/9.75% 2007(1) 12,000 8,520
0%/10.65% 2007(1) 21,500 15,695
0%/9.95% 2008(1) 31,500 22,050
12.00% 2008(2) 7,500 8,700
Series D, 13.00% exchangeable preferred, redeemable 2009 (3) (4) 15shares 16,950
Series E, 11.25% exchangeable preferred, redeemable 2010 (3) (4) 31shares 31,338
McCaw International, Ltd. (owned by Nextel Communications, Inc.) $18,125 10,694
0%/13.00% 2007(1)
Nextel International, Inc. 0%/12.125% 2008(1) 29,250 13,748 5.14%
Omnipoint Corp.:
12.00% 2000(5) 12,500 12,281
14.00% 2003(3) (5) 29,500 29,057
8.531% 2006(2) (6) 7,418 6,750
11.625% 2006 27,000 23,625
11.625% 2006 9,000 7,875
7.00% convertible preferred 185shares 5,920 3.17
Clearnet Communications Inc.:
0%/11.75% 2007(1) C$52,375 24,363
0%/10.40% 2008(1) C$50,325 20,864 1.68
Dobson Communications Corp.:
11.75% 2007 $11,075 11,864
12.25% exchangeable preferred, redeemable 2008(3) (4) 11shares 10,608
Senior exchangeable preferred, redeemable 2008 (2) (3) (4) 15shares 14,250 1.36
American Cellular Corp. 10.50% 2008(2) $31,125 32,681 1.21
Crown Castle International Corp.:
0%/10.625% 2007(1) 19,000 13,300
12.75% preferred (2) (3) (4) 16shares 17,715 1.15
PageMart Wireless, Inc.:
0%/15.00% 2005(1) $12,750 10,774
0%/11.25% 2008(1) 51,760 18,634 1.09
Esat Telecom Group PLC:
0%/12.50% 2007(1) 20,250 14,783
11.875% 2008(2) 12,000 12,960 1.03
Centennial Cellular Corp. 10.75% 2008(2) 21,250 22,419 .83
MobileTelecommunication Technologies Corp. 13.50% 2002 18,875 21,211 .79
CCPR Services, Inc. 10.00% 2007 18,500 19,240 .71
Comunicacion Celular SA 0%/14.125% 2005(1) (2) 16,000 10,540 .39
Comcast Cellular Corp., Series B, 9.50% 2007 7,500 8,588 .32
CellNet Data Systems, Inc. 0%/14.00% 2007(1) 21,660 6,606 .24
SpectraSite Holdings, Inc. 0%/12.00% 2008(1) (2) 8,500 5,313 .20
Price Communications Cellular Holdings, Inc. 11.25% 2008(3) 5,305 4,986 .18
Teletrac Holdings, Inc. 14.00% 2007 13,550 3,726 .14
Occidente Y Caribe Celular SA 0%/14.00% 2004(1) 5,000 3,613 .13
Western Wireless Corp. 10.50% 2006 3,000 3,139 .12
Cellco Finance NV:
15.00% 2005(2) 1,000 967
15.00% 2005 375 363 .05
Conecel Holdings Ltd., Series A, 14.00% 2000(2) (5) (7) 5,500 1,238 .05
Netia Holdings BV 0%/11.25% 2007(1) 1,000 677 .02
--------------------
539,751 20.00
--------------------
TELECOMMUNICATIONS - 11.28%
Viatel, Inc.:
0%/12.40% 2008(1) DM22,500 7,760
0%/12.50% 2008(1) $29,500 18,364
11.15% 2008 DM5,000 2,801
11.25% 2008 $10,000 10,125
11.50% 2009(2) 2,500 2,594
10.00% convertible subordinated debentures 2011(2) 1,516 1,255
Series A, 10.00% convertible preferred(3) (4) 18shares 2,724 1.69
COLT Telecom Group PLC:
0%/12.00% 2006(1) $26,250 22,280
8.875% 2007 DM20,250 11,961
7.625% 2008 DM9,250 5,146 1.46
Time Warner Telecom Inc. 9.75% 2008 $27,225 29,131 1.08
Global TeleSystems Group, Inc.:
8.75% convertible debentures 2000(2) 7,500 21,600
9.875% 2005 6,000 5,760 1.01
NEXTLINK Communications, Inc.:
12.50% 2006 1,750 1,927
9.625% 2007 13,000 13,195
9.00% 2008 9,500 9,429
14.00% preferred 2009(3) (4) 32shares 1,787 .98
US Xchange, LLC 15.00% 2008 $21,875 23,625 .87
Allegiance Telecom, Inc.:
0%/11.75% 2008(1) 22,000 13,695
12.875% 2008 2,625 2,907 .61
PTC International Finance BV 0%/10.75% 2007(1) 18,500 13,967 .52
Loral Orion Network Systems, Inc. 11.25% 2007 15,425 13,882 .51
KMC Telecom Holdings, Inc. 0%/12.50% 2008(1) 22,500 12,375 .46
TVN Entertainment Corp. 14.00% 2008(2) 13,250 10,335 .38
GST Equipment Funding, Inc. 13.25% 2007 9,000 9,416 .35
IXC Communications, Inc. (3) (4) 8shares 8,744 .32
IMPSAT Corp. 12.375% 2008 $5,750 5,146 .19
Level 3 Communications, Inc. 9.125% 2008 5,000 5,013 .19
Qwest Communications International Inc. 0%/9.47% 2007(1) 6,000 4,755 .18
Teligent, Inc. 11.50% 2007 4,000 3,800 .14
SkyTel Communications, Inc. $2.25 convertible preferred 100shares 2,850 .11
Piltel International Holding Corp. 1.75% convertible 2006 $5,875 2,056 .08
Telesystem International Wireless Inc. 0%/13.25% 2007(1) 3,600 1,944 .07
Globalstar, LP 11.375% 2004 3,000 1,890 .07
CEI Citicorp Holdings SA 11.25% 2007(2) ARP500 355 .01
--------------------
304,594 11.28
--------------------
DIVERSIFIED MEDIA & CABLE TELEVISION - 11.10%
Comcast UK Cable Partners Ltd. 0%/11.20% 2007(1) $32,000 27,960
NTL Inc.:
0%/12.75% 2005(1) 1,000 945
Series B, 10.00% 2007 5,750 6,095
0%/9.75% 2008(1) 12,500 8,500
0%/10.75% 2008(1) Pound 21,950 18,900
11.50% 2008(2) $6,000 6,765 2.56
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007(1) 34,000 25,075 2.01
8.875% 2007 28,125 29,109
Charter Communications Holdings, LLC:
8.25% 2007(2) 6,000 6,120
0%/9.92% 2011(1) (2) 47,500 30,400 1.35
Adelphia Communications Corp.:
9.25% 2002 6,000 6,255
8.125% 2003 5,000 5,063
10.50% 2004 8,500 9,350
Series B, 13.00% 2009 (4) 20shares 2,310 .85
Lenfest Communications, Inc.:
8.375% 2005 $6,000 6,360
7.625% 2008 6,750 6,834
8.25% 2008 3,250 3,348 .61
Falcon Holding Group, LP, Falcon Funding Corp. 8.375% 2010 15,250 15,402 .57
Telemundo Holdings, Inc. 0%/11.50% 2008(1) (2) 23,700 13,627 .50
Century Communications Corp.:
0% 2003 1,500 1,065
8.75% 2007 4,000 4,170
0% 2008 16,000 7,440 .47
Avalon Cable of Michigan:
0%/11.875% 2008(1) (2) 8,625 5,520 .20
9.375% 2008(2) 5,250 5,539 .21
Globo Comunicacoes E Partcipacoes Ltd.:
10.50% 2006(2) 8,280 5,361
10.50% 2006 2,000 1,295
10.625% 2008(2) 3,500 2,266
10.625% 2008 1,500 971 .37
TeleWest PLC 9.625% 2006 9,000 9,563 .35
Cablevision Systems Corp.:
7.875% 2007 500 527
9.875% 2013 6,000 6,637 .27
V2 Music Holdings PLC:
0%/14.00% 2008(1) (2) 10,905 3,817
0%/14.00% 2008(1) (2) Pound2,250 1,270 .19
FrontierVision 11.00% 2006 $4,500 5,085 .19
Multicanal Participacoes SA, Series B, 12.625% 2004 4,900 4,226 .16
Coaxial Communications of Central Ohio, Inc. 10.00% 2006 3,000 3,188 .12
TV Azteca, SA de CV, Series B, 10.50% 2007 3,000 2,528 .09
Grupo Televisa, SA 0%/13.25% 2008(1) 1,000 843 .03
--------------------
299,729 11.10
--------------------
LEISURE & TOURISM - 6.45%
William Hill Finance 10.625% 2008 Pound21,950 38,776 1.44
AMF Bowling Worldwide, Inc.:
0%/12.25% 2006(1) $12,543 7,275
10.875% 2006 22,250 18,134
0% convertible debentures 2018(2) 21,900 2,519 1.03
Boyd Gaming Corp.:
9.25% 2003 15,250 15,936
9.50% 2007 7,860 8,056 .89
Harrah's Operating Co., Inc. 7.875% 2005 19,225 19,321
Rio Hotel & Casino, Inc. 10.625% 2005 1,500 1,622 .77
Carmike Cinemas, Inc. 9.375% 2009(2) 11,500 11,673 .43
Regal Cinemas, Inc.:
9.50% 2008 8,250 8,425
8.875% 2010 3,000 2,944 .42
Premier Parks Inc.:
9.25% 2006 4,000 4,140
0%/10.00% 2008(1) 8,000 5,560 .36
Jupiters Ltd. 8.50% 2006(2) 9,375 9,375 .35
Friendly Ice Cream Corp. 10.50% 2007 9,500 8,811 .33
Sun International Hotels Ltd., Sun International North America, Inc.:
8.625% 2007 3,750 3,881
9.00% 2007 4,000 4,190 .30
Mirage Resorts, Inc. 6.625% 2005 2,000 1,953 .07
KSL Recreation Group, Inc. 10.25% 2007 1,000 1,030 .04
Six Flags Entertainment Corp. 8.875% 2006 500 510 .02
--------------------
174,131 6.45
--------------------
MANUFACTURING - 6.10%
Graham Packaging Co.:
8.75% 2008 17,250 17,272
0%/10.75% 2009(1) 16,500 11,467 1.06
Anchor Glass Container Corp.:
11.25% 2005 16,250 16,920
9.875% 2008 7,750 7,169 .89
Lifestyle Furnishings International Ltd. 10.875% 2006 17,755 19,886 .74
Printpack, Inc.:
9.875% 2004 5,750 5,671
10.625% 2006 14,730 13,607 .71
Federal-Mogul Corp.:
7.50% 2004 4,500 4,513
7.375% 2006(2) 5,000 4,900
7.50% 2009(2) 8,000 7,806 .64
BREED Technologies, Inc. 9.25% 2008(2) 30,000 12,300 .46
Hayes Wheels International, Inc. 9.125% 2007 2,500 2,606
Hayes Lemmerz International, Inc. 8.25% 2008(2) 8,750 8,794 .42
Key Plastics Holdings, Inc. 10.25% 2007 9,650 9,663 .36
Westinghouse Air Brake Co.:
9.375% 2005 5,750 5,958
9.375% 2005(2) 3,500 3,627 .35
Impress Metal Packaging Holdings BV 9.875% 2007 DM10,850 6,646 .25
Tekni-Plex, Inc. 9.25% 2008 $5,250 5,368 .20
Reliance Industries Ltd. 10.50% 2046(2) 500 433 .02
--------------------
164,606 6.10
--------------------
BROADCASTING & PUBLISHING - 6.07%
Chancellor Media Corp. of Los Angeles:
9.375% 2004 14,500 15,080
8.125% 2007 9,500 9,642
Series B, 8.75% 2007 7,850 8,125
9.00% 2008 1,000 1,070 1.26
Sun Media Corp.:
9.50% 2007 12,516 13,768
9.50% 2007 4,434 4,877 .69
Ziff-Davis Inc. 8.50% 2008 16,500 16,335 .60
TransWestern Publishing Co. LLC 9.625% 2007 12,550 13,115 .49
Antenna TV SA 9.00% 2007 12,450 12,076 .45
Gray Communications Systems, Inc. 10.625% 2006 10,120 10,841 .40
Big City Radio, Inc. 0%/11.25% 2005(1) 14,000 9,730 .36
ACME Intermediate Holdings, LLC, Series B, 0%/12.00% 2005(1) 12,689 8,184 .30
Muzak LLC 9.875% 2009(2) 3,000 3,045
Muzak Holdings LLC 0%/13.00% 2010(1) (2) 6,500 3,510 .24
Young Broadcasting Inc.:
10.125% 2005 3,500 3,706
Series B, 8.75% 2007 2,000 2,060 .21
American Media Operations, Inc. 11.625% 2004 4,650 5,022 .19
Newsquest Capital PLC:
11.00% 2006 3,150 3,481
Series B, 11.00% 2006 1,330 1,470 .18
Radio One, Inc. 7.00%/12.00% 2004(1) 4,750 4,940 .18
Cumulus Media Inc. 13.75% preferred 2009(3) (4) 3shares 3,375 .13
STC Broadcasting, Inc. 11.00% 2007 $3,000 3,142 .12
Capstar Broadcasting Corp. 12.00% preferred 2009(3) 24shares 2,775 .10
RBS Participacoes SA 11.00% 2007(2) $4,500 2,385 .09
Jones Intercable, Inc. 9.625% 2002 2,000 2,105 .08
--------------------
163,859 6.07
--------------------
BANKING & FINANCIAL SERVICES - 5.01%
Fuji JGB Investment LLC, Series A, 9.87% noncumulative preferred(2) 38,955 34,670 1.28
Advanta Corp.:
7.50% 2000 9,700 9,175
7.00% 2001 5,500 4,915
Series D, 6.814% 2002 10,000 8,652
Series D, 6.98% 2002 2,000 1,740 .91
Providian Financial Corp. 9.525% 2027(2) 15,000 14,709 .55
Chevy Chase Bank, FSB 9.25% 2008 2,000 2,000
Chevy Chase Preferred Capital Corp. 10.375% 214shares 11,476 .50
Tokai Preferred Capital Co. LLC, Series A, 9.98% noncumulative preferred(2) $12,500 11,155 .41
Komercni Finance BV 9.00% 2008(2) 9,950 7,885 .29
Superior Financial Corp. 8.65% 2003(2) 6,000 6,060 .23
SocGen Real Estate Co. LLC, Series A, 7.64%/8.406% 2049(1) (2) 6,300 5,980 .22
IBJ Preferred Capital Co. LLC, Series A, 8.79% noncumulative preferred(2) 6,750 5,679 .21
BNP U.S. Funding LLC, Series A, 7.738% noncumulative preferred(2) 4,750 4,627 .17
SB Treasury Co. LLC, Series A, 9.40% noncumulative preferred(2) 4,000 3,900 .14
BT Institutional Capital Trust B, Series B, 7.75% 2026(2) 2,100 2,035 .08
Korea Development Bank 6.625% 2003 500 474 .02
--------------------
135,132 5.01
--------------------
HEALTH & PERSONAL CARE - 3.91%
Integrated Health Services, Inc.:
5.75% convertible debentures 2001 11,000 7,040
10.25% 2006 11,250 7,819
Series A, 9.50% 2007 26,000 16,900
Series A, 9.25% 2008 46,250 29,600 2.27
Paracelsus Healthcare Corp. 10.00% 2006 35,825 24,540 .91
Mariner Health Group, Inc. 9.50% 2006 13,625 9,538 .35
Unison HealthCare Corp.:
13.00% 1999(2) (5) (7) 2,000 2,000
13.75% 2006(2) (5) (7) 8,750 1,750 .14
Tenet Healthcare Corp. 8.00% 2005 3,750 3,703 .14
Mariner Post-Acute Network, Inc.:
0%/10.50% 2007(1) 3,400 680
9.50% 2007 6,000 1,920 .10
--------------------
105,490 3.91
--------------------
ENERGY RELATED - 3.69%
Cross Timbers Oil Co.:
Series B, 9.25% 2007 12,730 12,348
8.75% 2009 17,620 16,739 1.08
Pogo Producing Co.:
8.75% 2007 16,500 15,345
10.375% 2009(2) 6,500 6,597 .81
Petro Stopping Centers, LP 10.50% 2007 10,250 11,019 .41
Kelley Oil & Gas Corp.:
7.875% convertible notes 1999(5) 3,245 698
8.50% convertible debentures 2000 2,291 492
10.375% 2006 7,200 4,680
10.375% senior subordinated notes 2006 2,975 1,934
$2.625 convertible preferred 170shares 850 .32
Benton Oil and Gas Co.:
11.625% 2003 $7,000 4,550
9.375% 2007 2,300 1,495 .22
Petrozuata Finance, Inc.:
Series A, 7.63% 2009(2) 3,500 2,699
Series B, 8.22% 2017(2) 4,000 2,880 .21
Clark Refining & Marketing, Inc.:
8.375% 2007 1,500 1,320
8.875% 2007 4,500 3,825 .19
PDVSA Finance Ltd.:
9.375% 2007(2) 2,500 2,485
7.50% 2028 1,000 731 .12
Casecnan Water and Energy Co., Inc., Series B, 11.95% 2010 3,500 3,089 .11
McDermott Inc. 9.375% 2002 2,525 2,638 .10
Parker & Parsley Petroleum Co. 8.25% 2007 2,450 2,206 .08
Newfield Exploration Co., Series B, 7.45% 2007 1,000 964 .04
--------------------
99,584 3.69
--------------------
FOREST PRODUCTS & PAPER - 3.67%
Container Corp. of America:
10.75% 2002 5,250 5,598
9.75% 2003 23,500 24,734
Series A, 11.25% 2004 5,500 5,802 1.34
Pacifica Papers Inc. 10.00% 2009(2) 16,500 16,871 .63
Norampac Inc.:
9.375% 2008 C$2,000 1,373
9.50% 2008 $9,350 9,736 .41
Advance Agro PCL 13.00% 2007(2) 10,500 8,295 .31
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 4,750 3,467
10.00% 2007 7,125 3,919
Indah Kiat International Finance Co. BV 12.50% 2006 100 72 .28
PT Indah Kiat Pulp & Paper Corp. Tbk 8.875% 2000 300 228
Packaging Corp. of America:
9.625% 2009(2) 1,250 1,250
12.375% preferred 2010(2) (3) (4) 63shares 6,250 .28
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002 $7,500 4,200
10.75% 2007 4,575 2,471 .25
Copamex Industrias, SA de CV, Series B, 11.375% 2004 4,625 4,348 .16
APP International Finance Co. BV 11.75% 2005 525 379 .01
--------------------
98,993 3.67
--------------------
CONSUMER PRODUCTS - 2.91%
Canandaigua Wine Co., Inc.:
8.75% 2003 9,650 9,783
Series C, 8.75% 2003 9,750 9,896 .73
Delta Beverage Group, Inc. 9.75% 2003 15,735 16,364 .60
Standard Commercial Tobacco Co., Inc. 8.875% 2005 13,550 10,501 .39
Fage Dairy Industry SA 9.00% 2007 9,250 8,279 .31
AKI, Inc. 10.50% 2008 6,400 6,240
AKI Holding Corp. 0%/13.50% 2009(1) 3,750 1,491 .29
DGS International Finance Co. BV:
10.00% 2007(2) 6,250 4,047
10.00% 2007 275 178 .16
Salton/Maxim Housewares, Inc. 10.75% 2005(2) 3,250 3,461 .13
Home Products International, Inc. 9.625% 2008 3,250 3,136 .11
New World Pasta Co. 9.25% 2009(2) 2,000 2,040 .07
Sparkling Spring Water Group Ltd. 11.50% 2007 2,250 1,552 .06
WestPoint Stevens Inc. 7.875% 2005 1,000 1,023 .04
Tultex Corp. 10.625% 2005 1,500 600 .02
--------------------
78,591 2.91
--------------------
TECHNOLOGY & ELECTRONICS - 2.91%
Micron Technology, Inc. 6.50% 2005(2) 20,000 16,200 .60
Advanced Micro Devices, Inc.:
11.00% 2003 6,000 6,180
6.00% convertible subordinated notes 2005 12,000 8,625 .55
Flextronics International Ltd. 8.75% 2007 13,750 14,162 .52
Zilog, Inc. 9.50% 2005 11,750 9,870 .37
Therma-Wave, Inc. 10.625% 2004 13,250 8,613 .32
Samsung Electronics Co., Ltd. 7.45% 2002(2) 6,000 5,722 .21
EarthWatch Inc.:
Units 12.50% 2001(2) (5) 6,000 4,800
Series C, 12.00% convertible senior preferred(2) (3) (4) (5) 675shares 337 .19
Fairchild Semiconductor Corp. 10.375% 2007(2) $4,000 4,080 .15
--------------------
78,589 2.91
--------------------
MERCHANDISING - 2.02%
Boyds Collection, Ltd. 9.00% 2008(2) 14,750 15,764 .58
Randall's Food Markets, Inc. 9.375% 2007 11,500 12,406 .46
Kmart Corp. 9.78% 2020 10,500 11,445 .42
DR Securitized Lease Trust, pass-through certificates, Series 1994 K-2, 9,855 10,446 .39
9.35% 2019(8)
Carr-Gottstein Foods Co. 12.00% 2005 2,000 2,300 .09
Fred Meyer, Inc.:
7.375% 2005 1,000 1,031
7.45% 2008 1,000 1,054 .08
--------------------
54,446 2.02
--------------------
MISCELLANEOUS SERVICE COMPANIES - 1.13%
Safety-Kleen Services, Inc. 9.25% 2008 13,375 14,077 .52
Iron Mountain Inc.:
8.75% 2009 5,370 5,504
8.75% 2009 3,000 3,240 .33
Protection One Alarm Monitoring, Inc. 13.625% 2005 6,166 7,029 .26
Allied Waste North America, Inc. 7.625% 2006 500 489 .02
--------------------
30,339 1.13
--------------------
TRANSPORTATION - 0.68%
Teekay Shipping Corp. 8.32% 2008 12,500 12,297 .46
USAir, Inc., pass-through trust, Series 1993-A3, 10.375% 2013(8) 5,650 6,081 .22
--------------------
18,378 .68
--------------------
METALS & MATERIALS - 0.46%
Doe Run Resources Corp., Series B, 11.25% 2005 9,500 7,980 .30
Kaiser Aluminum and Chemical Corp. 12.75% 2003 4,500 4,354 .16
--------------------
12,334 .46
--------------------
OTHER - 1.07%
M.D.C. Holdings, Inc. 8.375% 2008 9,250 9,065 .33
Wharf International Finance Ltd., Series A, 7.625% 2007 10,000 8,024 .30
Swire Pacific Offshore Financing Ltd. 9.33% cumulative 352shares 6,505 .24
guaranteed perpetual capital securities(2)
Mosaic Re Ltd. 9.935% 2000(2) (6) $5,500 5,497 .20
--------------------
29,091 1.07
--------------------
PRIVATE ISSUE COLLATERALIZED MORTGAGE
OBLIGATIONS/ASSET-BACKED SECURITIES - 0.83%
Gramercy Place Insurance Ltd., Series 1998-A, Class C-2, 8.95% 2002(2) 12,500 12,493 .46
Chase Commercial Mortgage Securities Corp., Series 1998-2, 5,000 4,336 .16
Class E, 6.39% 2030(8)
Residential Reinsurance Ltd. 9.421% 1999(2) (6) 3,250 3,263 .12
GMAC Commercial Mortgage Securities, Inc., Series 1997-C2, 2,500 2,262 .09
Class E, 7.624% 2011
Resolution Trust Corp., Series 1993-C1, Class E, 9.50% 2024 57 57 .00
--------------------
22,411 .83
--------------------
U.S. TREASURY OBLIGATIONS - 1.55%
6.875% July 1999 19,000 19,134 .71
7.50% November 2001 10,000 10,578 .39
7.50% February 2005 11,000 12,194 .45
--------------------
41,906 1.55
--------------------
GOVERNMENTS (EXCLUDING U.S.) - 2.31%
United Mexican States Government:
0% 2003(5) 768 0
Eurobonds:
Global, 11.375% 2016 7,695 8,330
Series A, units 6.116% 2019(6) 500 427
Global, 11.50% 2026 5,625 6,279 .56
Philippines (Republic of):
8.875% 2008 4,500 4,466
9.875% 2019 7,250 7,232 .43
Panama (Republic of) :
Interest Reduction Bond 4.00% 2014(2) (6) 11,500 9,042
Past Due Interest Eurobond 5.938% 2016(6) 535 424
8.875% 2027 1,250 1,159 .40
Argentina (Republic of):
Series L, 6.188% Eurobonds 2005(6) 930 797
11.00% 2006 250 241
11.75% 2007(2) ARP4,130 3,792
11.375% 2017 $2,750 2,602
9.75% 2027 1,575 1,313 .32
Brazil (Federal Republic of):
Debt Conversion Bond, Series L:
6.188% 2012(6) 2,750 1,612
6.188% 2012(6) 4,500 2,638
Bearer 8.00% 2014(3) 1,914 1,220 .20
Korea (Republic of) 8.875% 2008 5,000 5,360 .20
Venezuela (Republic of):
Eurobond 5.938% 2007(6) 1,714 1,209
Front Loaded Interest Reduction Bond, Series A, 6.125% 2007(6) 762 512 .06
Bulgaria (Republic of) Front Loaded Interest Reduction Bond, 2.50% 2012(6) 1,770 1,014 .04
Turkey (Republic of) 10.00% 2007 1,000 928 .04
Peru (Republic of):
Past Due Interest Eurobond 4.50% 2017(6) 750 478
Front Loaded Interest Reduction Bond 3.75% 2049(2) (6) 500 298 .03
Ecuador (Republic of):
Past Due Interest Registered Bond 6.00% 2015(6) 719 245
Past Due Interest Bearer Bond 6.00% 2015(6) 432 147
Past Due Interest Discount Bond 6.00% 2025(6) 250 122 .02
Mendoza (Province of) 10.00% 2007(2) 500 355 .01
--------------------
62,242 2.31
--------------------
Number of
Shares
COMMON STOCKS & WARRANTS - 2.10%
Nortel Inversora SA, preferred, Class A (American Depositary 939,685 11,718 .44
Receipts) (Argentina)(2) (5)
COLT Telecom Group PLC, warrants, expire 2006 18,250 9,125 .34
(United Kingdom)(2) (4)
Integrated Health Services, Inc. (4) 1,081,206 5,947 .22
Jacor Communications, Inc. (4) 70,000 5,320 .20
Felcor Lodging Trust Inc. 225,000 5,217 .19
Omnipoint Corp. (4) 328,211 4,739 .18
Infinity Broadcasting Corp. (4) 106,800 2,750 .10
Cross Timbers Oil Co. 350,000 2,472 .09
MCI WorldCom, Inc. (4) 21,000 1,860 .07
Verio Inc., warrants, expire 2004 (2) (4) 18,450 1,559 .06
ACME Intermediate Holdings, LLC (2) (4) 11,939 716
Acme Televison, LLC (4) 725 725 .05
Comunicacion Celular SA, Class B, warrants, expire 2003 15,000 1,200 .04
(Colombia)(2) (4)
Esat Holdings Ltd., warrants, expire 2007 (Ireland)(2) (4) (5) 11,250 900 .03
Nextel Communications, Inc.:
Class A (4) 13,942 511
Warrants, expire 1999 (4) (5) 21,250 177 .03
NTL Inc., warrants, expire 2008 (2) (4) (5) 6,412 378 .01
CellNet Data Systems, Inc., warrants, expire 2007 (2) (4) 47,786 287 .01
Loral Orion Network Systems, Inc., warrants, expire 2007 (4) 25,475 239 .01
Conecel Holdings Ltd., Class B, warrants, expire 2000 (Ecuador)(2) (4) 142,450 214 .01
Protection One Alarm Monitoring, Inc., warrants, expire 2005 (2) (4) 30,400 213 .01
Allegiance Telecom Inc., warrants, expire 2008 (2) (4) 5,000 175 .01
Globalstar Telecommunications Ltd., warrants, expire 2004 (4) 3,000 120 .00
Teletrac Holdings, Inc., warrants, expire 2007 (2) (4) (5) 13,550 75 .00
KMC Telecom Holdings Inc., warrants, expire 2008 (2) (4) 22,500 56 .00
McCaw International, Ltd., warrants, expire 2007 (2) (4) 8,500 26 .00
V2 Music Holdings PLC (United Kingdom):
Warrants, expire 2008 (2) (4) 2,250 0
Warrants, expire 2008 (2) (4) 10,905 0 .00
--------------------
56,719 2.10
--------------------
Principal
Amount
Miscellaneous
Investment securities in initial period of acquisition $1,600 2,134 .08
----------
Total Bonds, Notes & Equity Securities (cost: $2,671,895,000) 2,573,049 95.33
----------
Short-Term Securities - 2.69%
General Motors Acceptance Corp. 5.06% due 4/1/99 $20,000 $19,997 .74
FCE Bank PLC 4.85% due 4/8/99 20,000 19,979 .74
Atlantic Richfield Co. 4.82% due 4/9/99 18,000 17,978 .67
American Home Products Corp. 4.85% due 4/19/99 9,400 9,376 .35
General Electric Capital Corp. 5.03% due 4/1/99 4,600 4,599 .17
Mexican Cetes 0% 1999 MXP600 598 .02
--------------------
Total Short-Term Securities (cost: $71,929,000) 72,527 2.69
--------------------
Total Investment Securities (cost: $2,743,824,000) 2,645,576 98.02
Excess of cash and receivables over payables 53,557 1.98
--------------------
Net Assets $2,699,133 100.00%
--------------------
(1)Step bond; coupon rate will increase at a later date.
(2)Purchased in a private placement transaction; resale may
be limited to qualified institutional
buyers; resale to the public may require registration.
(3)Payment in kind. The issuer has the option of paying additional securities in lieu of cash.
(4)Non-income-producing security.
(5)Valued under procedures established by the Board of Trustees.
(6)Coupon rate may change periodically.
(7)Company not making interest payments, bankruptcy proceedings pending.
(8)Pass-through security 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.
See Notes to Financial Statements
</TABLE>
<TABLE>
American High-Income Trust
Financial Statements
Statement of Assets and Liabilities
at March 31, 1999 (dollars in thousands) (Unaudited)
<S> <C> <C>
Assets:
Investment securities
(cost: $2,743,824) $ 2,645,576
Cash 1,565
Receivables for--
Sales of investments $ 19,782
Sales of fund's shares 7,646
Forward currency contracts 986
Accrued dividends and interest 53,994 82,408
--------- ---------
2,729,549
Liabilities:
Payables for--
Purchases of investments 22,153
Repurchases of fund's shares 4,226
Dividends on fund's shares 2,495
Management services 1,041
Accrued expenses 501 30,416
--------- ---------
Net Assets at March 31, 1999 --
Equivalent to $14.13 per share on
190,991,140 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $ 2,699,133
=========
Statement of Operations
for the six months ended March 31, 1999 (Unaudited)
(dollars in thousands)
Investment Income:
Income:
Dividends $ 2,493
Interest 123,934 $ 126,427
---------
Expenses:
Management services fee 5,858
Distribution expenses 3,177
Transfer agent fee 866
Reports to shareholders 36
Registration statement and prospectus 236
Postage, stationery and supplies 161
Trustees' fees 15
Auditing and legal fees 50
Custodian fee 31
Taxes other than federal income tax 40
Other expenses 56 10,526
--------- ---------
Net investment income 115,901
---------
Realized Loss and Unrealized
Depreciation on Investments:
Net realized loss (10,002)
Net change in unrealized depreciation on:
Investments 87,770
Open forward currency contracts 3,607 91,377
--------- ---------
Net realized loss and change in unrealized
depreciation on investments 81,375
---------
Net Increase in Net Assets
Resulting from Operations $ 197,276
=========
Statement of Changes in Net Assets
(dollars in thousands)
Six months
ended Year ended
March 31, 1999* September 30, 1998
Operations: --------- ---------
Net investment income $ 115,901 $ 206,542
Net realized gain (loss) on investments (10,002) 16,864
Net increase in unrealized appreciation
on investments 91,377 (298,852)
--------- ---------
Net increase in net assets
resulting from operations 197,276 (75,446)
--------- ---------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (120,463) (200,841)
Distributions from net realized
gain on investments (8,119) (47,160)
--------- ---------
Total dividends and distributions (128,582) (248,001)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
41,922,129 and 64,577,666
shares, respectively 585,674 986,681
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on
investments: 6,456,919 and
11,414,562 shares, respectively 90,436 172,376
Cost of shares repurchased:
29,012,656 and 38,731,190
shares, respectively (405,564) (583,545)
--------- ---------
Net increase in net assets
resulting from capital share
transactions 270,546 575,512
--------- ---------
Total Increase in Net Assets 339,240 252,065
Net Assets:
Beginning of period 2,359,893 2,107,828
--------- ---------
End of period (including undistributed
net investment income: $9,785
and $14,347, respectively) $ 2,699,133 $ 2,359,893
========= =========
*Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
(Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The following is a summary of the
significant accounting policies consistently followed by the fund in the
preparation of its financial statements:
SECURITY VALUATION - 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. 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.
NON-U.S. CURRENCY TRANSLATION - Assets or liabilities initially expressed in
terms of non-U.S. 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 non-U.S. currency exchange rates on investment securities are
included with the net realized and unrealized gain or loss on investment
securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - 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 AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders are
declared daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
FORWARD CURRENCY CONTRACTS - 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. FEDERAL INCOME TAXATION
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 March 31, 1999, net unrealized depreciation on investments, excluding
forward currency contracts, for book and federal income tax purposes aggregated
$98,249,000, of which $126,066,000 related to appreciated securities and
$224,315,000 related to depreciated securities. During the six months ended
March 31, 1999, the fund realized, on a tax basis, a net capital loss
of $18,256,000 on securities transactions. Net gains related to non-U.S.
currency transactions of $3,770,000 are treated as ordinary income for federal
income tax purposes. In addition, the fund has recognized, for tax purposes,
losses related to non-U.S. currency transactions totaling $3,668,000 which were
realized during the period November 1, 1997 through September 30, 1998. The
cost of portfolio securities, excluding forward currency contracts, for book
and federal income tax purposes was $2,743,824,000 at March 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $5,858,000 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
("asset-based fee"), 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
("income-based fee").
DISTRIBUTION EXPENSES - 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, 1999, distribution expenses under the Plan were $3,177,000. As
of March 31, 1999, accrued and unpaid distribution expenses were $407,000.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $1,560,000 (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.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $866,000.
DEFERRED TRUSTEES' FEES - Trustees who are unaffiliated with CRMC may elect
to defer part or all of the fees earned for services as members of the Board.
Amounts deferred are not funded and are general unsecured liabilities of the
fund. As of March 31, 1999, aggregate deferred compensation and earnings
thereon since the plan's adoption (1993), net of any payments to Trustees were
$50,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $678,683,000 and $426,515,000, respectively, during
the six months ended March 31, 1999.
As of March 31, 1999, accumulated net realized loss on investments was
$8,177,000 and additional paid-in capital was $2,794,777,000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $31,000 was paid by these credits rather than in cash.
Net realized currency gains on interest, sales of non-U.S. bonds and notes and
other receivables and payables, on a book basis, were $135,000 for the six
months ended March 31, 1999.
At March 31, 1999, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
<TABLE> U.S. Valuation
Contract Amount at 3/31/99
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Non-U.S. Currency Unrealized
Sales Contracts Non-U.S. U.S. Amount Appreciation
- ------------------------------ ----------- ----------- ----------- -----------
Euros
expiring 4/28/99 to 6/30/99 Euro 28,062,000 $31,248,000 $30,377,000 $871,000
British pounds
expiring 5/25/99 to 8/10/99 Pounds 18,805,000 30,394,000 30,335,000 59,000
----------- ----------- -----------
$61,642,000 $60,712,000 $930,000
============= ============= =============
</TABLE>
<TABLE>
Per-Share
Data and Ratios
Six months
ended Year ended
March 31, September 30
1999(1) 1998 1997 1996 1995 1994
-------- -------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $13.75 $15.69 $14.86 $14.30 $13.97 $15.18
-------- -------- --------------------------------
Income from Investment
Operations:
Net investment income .63 1.30 1.26 1.29 1.33 1.25
Net gains or losses on
investments (both realized
and unrealized) .44 (1.60) .83 .59 .39 (.99)
-------- -------- --------------------------------
Total from investment operations 1.07 (.30) 2.09 1.88 1.72 .26
-------- -------- --------------------------------
Less Distributions:
Dividends (from net
investment income) (.64) (1.30) (1.24) (1.32) (1.32) (1.21)
Distributions (from
capital gains) (.05) (.34) (.02) - (.07) (.26)
-------- -------- --------------------------------
Total distributions (.69) (1.64) (1.26) (1.32) (1.39) (1.47)
-------- -------- --------------------------------
Net Asset Value, End of Period $14.13 $13.75 $15.69 $14.86 $14.30 $13.97
======== ======== ================================
Total Return(2) 8.05% (3) (2.40)% 14.66% 13.68% 13.34% 1.60%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $2,699 $2,360 $2,108 $1,547 $1,111 $835
Ratio of expenses to average
net assets .41% (3) .81% .82% .87% .89% .86%
Ratio of net income to
average net assets 4.55% (3) 8.76% 8.35% 8.90% 9.72% 8.63%
Portfolio turnover rate 17.97% (3) 54.63% 53.55% 39.74% 29.56% 42.03%
(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)]
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 92821-5823
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
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, 1999, this report must be accompanied by an American
Funds Group Statistical Update for the most recently completed calendar
quarter.
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180, OR VISIT WWW.AMERICANFUNDS.COM ON THE
WORLD WIDE WEB.
Printed on recycled paper
Litho in USA SG/GRS/3971
Lit. No. AHIT-013-0599
