AMERICAN HIGH INCOME TRUST, 485APOS, 1999-11-26

AMERICAN HIGH INCOME TRUST
485APOS, 1999-11-26

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SIGNED
SEC. File Nos. 33-17917
811-5364

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 17
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 20

AMERICAN HIGH-INCOME TRUST
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)

Registrant's telephone number, including area code:
(213) 486-9200

JULIE F. WILLIAMS, Secretary
American High-Income Trust
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)

Copies to:
Robert E. Carlson, Esq.
PAUL, HASTINGS, JANOFSKY & WALKER LLP
555 S. Flower Street
Los Angeles, CA 90071-2371
(Counsel for the Registrant)

Approximate date of proposed public offering:
It is proposed that this filing become effective on December 1, 1999, pursuant
to paragraph (a) of rule 485.

<PAGE>

American High-Income Trust/SM/

Prospectus

DECEMBER 1, 1999

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED
OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.

<PAGE>

---------------------------------------------------------
AMERICAN HIGH-INCOME TRUST

333 South Hope Street
Los Angeles, California 90071

<TABLE>
<CAPTION>
<S> <C> <C>
TICKER SYMBOL: AHITX NEWSPAPER ABBREV: HI Tr FUND NO: 21
</TABLE>

<TABLE>
<CAPTION>
TABLE OF CONTENTS
-------------------------------------------------------
<S> <C>
Risk/Return Summary 2
-------------------------------------------------------
Fees and Expenses of the Fund 5
-------------------------------------------------------
Investment Objectives, Strategies and Risks 6
-------------------------------------------------------
Year 2000 9
-------------------------------------------------------
Management and Organization 10
-------------------------------------------------------
Shareholder Information 12
-------------------------------------------------------
Purchase and Exchange of Shares 13
-------------------------------------------------------
Distribution Arrangements 18
-------------------------------------------------------
Financial Highlights 19
-------------------------------------------------------
Appendix 20
-------------------------------------------------------
</TABLE>

21-010-1299/B
AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
RISK/RETURN SUMMARY

The fund seeks to provide you with a high level of current income and,
secondarily, capital appreciation. The fund seeks to achieve these objectives
by investing primarily in a broad range of lower quality, higher yielding debt
securities that also provide an opportunity to increase in value. Typically,
when an issuer's financial health improves, its bond rating is often upgraded
and as a result its value tends to rise.

The fund is designed for investors seeking a high level of current income and
who are able to tolerate greater credit risk and price fluctuations than funds
investing in higher quality bonds. An investment in the fund is subject to
risks, including the possibility that the fund may decline in value in response
to economic, political or social events in the U.S. or abroad.

The values of debt securities may be affected by changing interest rates and
credit risk assessments. Lower quality and longer maturity bonds will be
subject to greater credit risk and price fluctuations than higher quality and
shorter maturity bonds. The prices of equity securities owned by the fund may
be affected by events specifically involving the companies issuing those
securities. Although all securities in the fund's portfolio may be adversely
affected by currency fluctuations or world political, social and economic
instability, investments outside the U.S. may be affected to a greater extent.

Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.

YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS IS GREATER
IF YOU INVEST FOR A SHORTER PERIOD OF TIME.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

INVESTMENT RESULTS

The following information illustrates how the fund's results fluctuate. Past
results are not an indication of future results.

Here are the fund's results calculated without a sales charge on a calendar
year basis. (If a sales charge were included, results would be lower.)
[bar chart]
1989 5.63%
1990 0.07%
1991 32.36%
1992 14.29%
1993 17.22%
1994 -5.11%
1995 20.68%
1996 13.75%
1997 12.20%
1998 1.64%
[end bar chart]

The fund's year-to-date return for the nine months ended September 30, 1999
was 2.31%.
------------------------------------------------------------------------------

The fund's highest/lowest quarterly results during this time period were:

<TABLE>
<CAPTION>
<S> <C> <C>
HIGHEST 13.95% (quarter ended March 31, 1991)
LOWEST -8.09% (quarter ended September 30, 1998)
</TABLE>

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

For periods ended December 31, 1998:

<TABLE>
<CAPTION>
THE FUND WITH
AVERAGE ANNUAL MAXIMUM SALES CS FIRST BOSTON
TOTAL RETURN CHARGE DEDUCTED/1/ HIGH YIELD INDEX/2/
<S> <C> <C>
One Year -3.20% 0.58%
-----------------------------------------------------------
Five Years 7.19% 8.16%
-----------------------------------------------------------
Ten Years 10.25% 10.74%
-----------------------------------------------------------
Lifetime/3/ 10.21% 10.52%
-----------------------------------------------------------
</TABLE>

30-day yield/1/: 9.01%
(For current yield information, please call American FundsLine/R/ at
1-800-325-3590)

1 These fund results were calculated according to a formula which requires that
the maximum sales charge of 4.75% be deducted and include the reinvestment of
dividend and capital gain distributions. Results would be higher if they were
calculated at net asset value.

2 The Credit Suisse First Boston High Yield Index is an unmanaged,
trader-priced portfolio constructed to mirror the high yield debt market
(revisions to the index are effected weekly). This index does not reflect
sales charges, commissions or expenses.

3 The fund began investment operations on February 19, 1988.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
FEES AND EXPENSES OF THE FUND

The following describes the fees and expenses that you may pay if you buy and
hold shares of the fund.

<TABLE>
<CAPTION>
SHAREHOLDER FEES
(fees paid directly from your investment)
----------------------------------------------------------------
<S> <C>
Maximum sales charge imposed on purchases 4.75%/1/
(as a percentage of offering price)
----------------------------------------------------------------
Maximum sales charge imposed on reinvested dividends 0%
----------------------------------------------------------------
Maximum deferred sales charge 0%/2/
----------------------------------------------------------------
Redemption or exchange fees 0%
</TABLE>

1 Sales charges are reduced or eliminated for larger purchases.

2 A contingent deferred sales charge of 1% applies on certain redemptions made
within 12 months following purchases of $1 million or more made without a
sales charge.

<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets)
----------------------------------------------------------
<S> <C>
Management Fees 0.46%
Service (12b-1) Fees 0.25%*
Other Expenses 0.11%
Total Annual Fund Operating Expenses 0.82%
</TABLE>

* 12b-1 expenses may not exceed 0.30% of the fund's average net assets
annually.

EXAMPLE

This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that
the fund's operating expenses remain the same. Although your actual costs may
be higher or lower, based on these assumptions your cumulative expenses would
be:

<TABLE>
<CAPTION>
<S> <C>
One year $ 555
-----------------------------------------------------------
Three years $ 724
-----------------------------------------------------------
Five years $ 908
-----------------------------------------------------------
Ten years $1,440
</TABLE>

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS

The fund's primary investment objective is to provide you with a high level of
current income. Its secondary investment objective is capital appreciation.
The fund invests primarily in lower quality debt securities (rated Ba or BB or
below), including those of non-U.S. issuers. The fund may also invest in
equity securities that provide an opportunity for capital appreciation.

The values of most debt securities held by the fund may be affected by changing
interest rates, effective maturities and credit ratings. For example, the
values of bonds in the fund's portfolio generally will decline when interest
rates rise and vice versa. Debt securities are also subject to credit risk
which is the possibility that an issuer of a debt security will fail to make
timely payments of principal or interest and the security will go into default.
The values of lower quality and longer maturity bonds will be subject to
greater price fluctuations than higher quality and shorter maturity bonds. The
fund's investment adviser attempts to reduce these risks through
diversification of the portfolio and by doing a credit analysis of each issuer
as well as by monitoring economic and legislative developments.

The prices of equity securities held by the fund will decline in response to
certain events, including those directly involving the companies whose
securities are owned in the fund, adverse conditions affecting the general
economy, overall market declines, world political, social and economic
instability, and currency fluctuations. Investments outside the U.S. may be
affected by these events to a greater extent and may also be affected by
differing securities regulations, higher transaction costs, and administrative
difficulties such as delays in clearing and settling portfolio transactions.

The fund may also hold cash or money market instruments. The size of the fund's
cash position will vary and will depend on various factors, including market
conditions and purchases and redemptions of fund shares. A larger cash position
could detract from the achievement of the fund's objective, but it also
provides greater liquidity to meet redemptions or to make additional
investments, and it would reduce the fund's exposure in the event of a market
downturn.

The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
securities. The basic investment philosophy of the investment adviser is to
seek undervalued securities that represent good long-term investment
opportunities. Securities may be sold when the investment adviser believes they
no longer represent good long-term value.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

ADDITIONAL INVESTMENT RESULTS

For periods ended December 31, 1998:

<TABLE>
<CAPTION>
SALOMON SMITH
BARNEY BROAD
CS FIRST BOSTON INVESTMENT
AVERAGE ANNUAL THE FUND WITH HIGH YIELD GRADE
TOTAL RETURN NO SALES CHARGE/1/ INDEX/2/ LIPPER INDEX/3/ INDEX/4/
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year 1.64% 0.58% -0.07% 8.71%
-------------------------------------------------------------------------------------
Five Years 8.24% 8.16% 7.63% 7.30%
-------------------------------------------------------------------------------------
Ten Years 10.78% 10.74% 9.52% 9.31%
-------------------------------------------------------------------------------------
Lifetime/5/ 10.70% 10.52% 9.38% 8.83%
-------------------------------------------------------------------------------------
</TABLE>

Distribution rate/6/: 8.91%

1 These fund results were calculated at net asset value according to a formula
that is required for all stock and bond funds and include the reinvestment of
dividend and capital gain distributions.

3 The Lipper High Current Yield Bond Funds Index represents an equally weighted
performance index adjusted for capital gain distributions and income dividends
of the largest qualifying funds in this objective.

4 The Salomon Smith Barney Broad Investment-Grade Bond Index represents a
market capitalization-weighted index that includes U.S. Treasury,
Government-sponsored, mortgage, and investment-grade fixed-rate corporates
(BBB-/Baa3) with a maturity of one year or longer. This index is unmanaged
and does not reflect sales charges, commissions or expenses.

5 The fund began investment operations on February 19, 1988.

6 The distribution rate represents actual distributions paid by the fund. It
was calculated at net asset value by annualizing dividends paid by the fund
over one month and dividing that number by the fund's average net asset value
for the month.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

The following chart illustrates the asset mix of the fund's investment
portfolio as of the end of the fund's fiscal year, September 30, 1999
[begin pie chart]
U.S. Corporate Bonds 66.9%
Non-U.S. Corporate Bonds 19.9%
Stocks 4.1%
Non-U.S. Government Bonds 1.8%
U.S. Treasuries 1.0%
Cash & Cash Equivalents 6.3%
[end pie chart]

HOLDINGS BY QUALITY CATEGORY
[begin pie chart]
Aaa/AAA 1.0%
A/A 0.7%
Baa/BBB 4.4%
Ba/BB 15.2%
B/B 53.7%
Caa/CCC 14.2%
CC 0.3%
[end pie chart]
See the Appendix for a description of quality ratings.
<TABLE>
<CAPTION>
PERCENT OF
TEN LARGEST HOLDINGS BY ISSUER NET ASSETS
-------------------------------------------------------------------
<S> <C>
Nextel Communications 5.0%
-------------------------------------------------------------------
Omnipoint 4.6
-------------------------------------------------------------------
NTL 2.5
-------------------------------------------------------------------
Crown Castle International 1.9
-------------------------------------------------------------------
COLT Telecom Group 1.9
-------------------------------------------------------------------
Fox/Liberty Networks 1.8
-------------------------------------------------------------------
Clearnet Communications 1.6
-------------------------------------------------------------------
Viatel 1.6
-------------------------------------------------------------------
Fuji JGB Investment 1.4
-------------------------------------------------------------------
Dobson Communications 1.4
</TABLE>

Because the fund is actively managed, its holdings will change from time to
time.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
YEAR 2000

The date-related computer issue known as the "Year 2000 problem" could have an
adverse impact on the quality of services provided to the fund and its
shareholders. However, the fund understands that its key service providers -
including the investment adviser and its affiliates - have updated all of their
computer systems to process date-related information properly following the
turn of the century. In addition, the Year 2000 problem may adversely affect
the issuers in which the fund invests. For example, issuers may incur
substantial costs to address the problem. They may also suffer losses caused by
corporate and governmental data processing errors. These risks may be
particularly acute in certain countries outside the U.S. in which the fund may
invest and may adversely affect the fund's net asset value and total return.
The fund and its investment adviser will continue to monitor developments
relating to this issue.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
MANAGEMENT AND ORGANIZATION

INVESTMENT ADVISER

Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and
other funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio and business
affairs of the fund. The total management fee paid by the fund, as a percentage
of average net assets, for the previous fiscal year is discussed earlier under
"Fees and Expenses of the Fund."

Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company
Institute's Advisory Group on Personal Investing. This policy has also been
incorporated into the fund's code of ethics.

MULTIPLE PORTFOLIO COUNSELOR SYSTEM

Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments which are managed by individual counselors.
Counselors decide how their respective segments will be invested, within the
limits provided by a fund's objective(s) and policies and by Capital Research
and Management Company's investment committee. In addition, Capital Research
and Management Company's research professionals may make investment decisions
with respect to a portion of a fund's portfolio. The primary individual
portfolio counselors for American High-Income Trust are listed on the following
page.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

<TABLE>
<CAPTION>
APPROXIMATE YEARS OF EXPERIENCE
YEARS OF EXPERIENCE AS AN INVESTMENT PROFESSIONAL
AS PORTFOLIO COUNSELOR (INCLUDNG THE LAST FIVE YEARS)
PORTFOLIO (AND RESEARCH PROFESSIONAL, -----------------------------------
COUNSELORS FOR IF APPLICABLE) FOR WITH CAPITAL
AMERICAN AMERICAN HIGH-INCOME RESEARCH AND
HIGH-INCOME TRUST MANAGEMENT
TRUST PRIMARY TITLE(S) (APPROXIMATE) COMPANY
-------------------------------------------------------------------------- OR AFFILIATES TOTAL YEARS
-----------------------------------
<S> <C> <C> <C> <C>
ABNER D. Vice Chairman and Trustee 2 years 32 years 48 years
GOLDSTINE of the fund. Senior Vice
President and Director,
Capital Research and
Management Company
----------------------------------------------------------------
---------------------------------------------
DAVID C. President of the fund. Vice 10 years 12 years 18 years
BARCLAY President, Capital Research
and Management Company
----------------------------------------------------------------
---------------------------------------------
SUSAN M. Vice President of the fund. 6 years 10 years 11 years
TOLSON Senior Vice President and
Director, Capital Research
Company*
----------------------------------------------------------------
-----------------------------
* Company affiliated with Capital Research and Management Company.
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
SHAREHOLDER INFORMATION

SHAREHOLDER SERVICES

American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your
needs and circumstances change. These services are available only in states
where they may be legally offered and may be terminated or modified at any time
upon 60 days' written notice. For your convenience, American Funds Service
Company has four service centers across the country.

AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS

Call toll-Free from anywhere in the U.S.
(8 a.m. to 8 p.m. ET):
800/421-0180

[map of the United States]

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Western Western Central Eastern Central Eastern
Service Center Service Center Service Center Service Center
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 2205 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Brea, California San Antonio, Texas Indianapolis, Indiana Norfolk, Virginia
92822-2205 78265-9522 46206-6007 23501-2280
Fax: 714/671-7080 Fax: 210/474-4050 Fax: 317/735-6620 Fax: 757/670-4773
</TABLE>

A COMPLETE DESCRIPTION OF THE SERVICES WE OFFER IS INCLUDED IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is
sent to new shareholders and is available by writing or calling American Funds
Service Company.

You may invest in the fund through various retirement plans. However, some
retirement plans or accounts held by investment dealers may not offer certain
services. If you have any questions, please contact your plan administrator/
trustee or dealer.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
PURCHASE AND EXCHANGE OF SHARES

PURCHASE

Generally, you may open an account by contacting any investment dealer
authorized to sell the fund's shares. You may purchase additional shares using
various options described in the statement of additional information and
"Welcome to the Family."

EXCHANGE

You may exchange your shares into other funds in The American Funds Group
generally without a sales charge. Exchanges of shares from the money market
funds initially purchased without a sales charge generally will be subject to
the appropriate sales charge. Exchanges have the same tax consequences as
ordinary sales and purchases. See "Transactions by Telephone..." for
information regarding electronic exchanges.

THE FUND AND AMERICAN FUNDS DISTRIBUTORS, THE FUND'S PRINCIPAL UNDERWRITER,
RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER FOR ANY REASON. ALTHOUGH THERE
IS CURRENTLY NO SPECIFIC LIMIT ON THE NUMBER OF EXCHANGES YOU CAN MAKE IN A
PERIOD OF TIME, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO
REJECT ANY PURCHASE ORDER AND MAY TERMINATE THE EXCHANGE PRIVILEGE OF ANY
INVESTOR WHOSE PATTERN OF EXCHANGE ACTIVITY THEY HAVE DETERMINED INVOLVES
ACTUAL OR POTENTIAL HARM TO THE FUND.

<TABLE>
<CAPTION>
INVESTMENT MINIMUMS
<S> <C>
To establish an account $1,000
For a retirement plan account $ 250
For a retirement plan account through payroll deduction $ 25
To add to an account $ 50
For a retirement plan account through payroll deduction $ 25
</TABLE>

SHARE PRICE

The fund calculates its share price, also called net asset value, as of 4:00
p.m. New York time, which is the normal close of trading on the New York Stock
Exchange, every day the Exchange is open. In calculating net asset value,
market prices are used when available. If a market price for a particular
security is not available, the fund will determine the appropriate price for
the security.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

Your shares will be purchased at the offering price, or sold at the net asset
value, next determined after American Funds Service Company receives and
accepts your request. The offering price is the net asset value plus a sales
charge, if applicable.

SALES CHARGE

A sales charge may apply to your purchase. Your sales charge may be reduced for
larger purchases as indicated below.

<TABLE>
<CAPTION> SALES CHARGE AS A
PERCENTAGE OF

-------------------- DEALER
NET COMMISSION
OFFERING AMOUNT AS % OF
INVESTMENT PRICE INVESTED OFFERING PRICE

-----------------------------------------------------------------------
<S> <C> <C> <C>
Less than $25,000 4.75% 4.99% 4.00%
-----------------------------------------------------------------------
$25,000 but less than $50,000 4.50% 4.71% 3.75%
-----------------------------------------------------------------------
$50,000 but less than $100,000 4.00% 4.17% 3.25%
-----------------------------------------------------------------------
$100,000 but less than $250,000 3.50% 3.63% 2.75%
-----------------------------------------------------------------------
$250,000 but less than $500,000 2.50% 2.56% 2.00%
-----------------------------------------------------------------------
$500,000 but less than $1 million 2.00% 2.04% 1.60%
-----------------------------------------------------------------------
$1 million or more and certain other
investments described below see below see below see below
</TABLE>

PURCHASES NOT SUBJECT TO SALES CHARGE

Investments of $1 million or more are sold with no initial sales charge.
HOWEVER A 1% CONTINGENT DEFERRED SALES CHARGE MAY BE IMPOSED IF REDEMPTIONS ARE
MADE WITHIN ONE YEAR OF PURCHASE. Employer-sponsored defined contribution-type
plans investing $1 million or more, or with 100 or more eligible employees, may
invest with no sales charge and are not subject to a contingent deferred sales
charge. Investments made by retirement plans, endowments or foundations with
$50 million or more in assets may also be made with no sales charge and are not
subject to a contingent deferred sales charge. The fund may pay a dealer
concession of up to 1% under its Plan of Distribution on investments made with
no initial sales charge.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

REDUCING YOUR SALES CHARGE

You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your sales charge. You must let your
investment dealer or American Funds Service Company know if you qualify for a
reduction in your sales charge using one or any combination of the methods
described below and in the statement of additional information and "Welcome to
the Family."

AGGREGATING ACCOUNTS

To receive a reduced sales charge, investments made by you and your immediate
family (see above) may be aggregated if made for their own account(s) and/or:

- trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may be
aggregated with accounts of the person who is the primary beneficiary of
the trust.

- solely controlled business accounts.

- single-participant retirement plans.

Other types of accounts may also be aggregated. You should check with your
financial adviser or consult the statement of additional information or
"Welcome to the Family" for more information.

CONCURRENT PURCHASES

You may combine simultaneous purchases of two or more American Funds, as well
as individual holdings in various American Legacy variable annuities or
variable life insurance policies, to qualify for a reduced sales charge. Direct
purchases of money market funds are excluded.

RIGHTS OF ACCUMULATION

You may take into account the current value of your existing holdings in The
American Funds Group, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to determine your sales
charge. Direct purchases of money market funds are excluded.

STATEMENT OF INTENTION

You may establish a Statement of Intention (SOI) that allows you to combine the
purchases you intend to make over a 13-month period in any non-money market
fund or individual American Legacy variable annuity or variable life insurance
policy. At your request purchases made during the previous 90 days may be
included; however, capital appreciation and reinvested dividends and

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

capital gains do not apply toward these combined purchases. An SOI allows you
to take immediate advantage of the maximum quantity discount available. A
portion of your account may be held in escrow to cover additional sales charges
which may be due if your total investments over the 13-month period do not
qualify for the applicable sales charge reduction.

PLAN OF DISTRIBUTION

The fund has a Plan of Distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of trustees. Up to 0.25%
of average net assets is paid annually to qualified dealers for providing
certain shareholder services. The 12b-1 fee paid by the fund, as a percentage
of average net assets, for the previous fiscal year is indicated earlier under
"Fees and Expenses of the Fund." Since these fees are paid out of the fund's
assets or income on an ongoing basis, over time they will increase the cost and
reduce the return of an investment and may cost you more than paying higher
initial sales charges.

OTHER COMPENSATION TO DEALERS

American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for, dealers as described in the statement of additional
information.

HOW TO SELL SHARES

Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:

THROUGH YOUR DEALER (CERTAIN CHARGES MAY APPLY)

- Shares held for you in your dealer's name must be sold through the dealer.

WRITING TO AMERICAN FUNDS SERVICE COMPANY

- Requests must be signed by the registered shareholder(s).

- A signature guarantee is required if the redemption is:

-- Over $50,000;

-- Made payable to someone other than the registered shareholder(s); or

-- Sent to an address other than the address of record, or an address of
record which has been changed within the last 10 days.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

- Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.

TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE/(R)/ OR AMERICAN FUNDSLINE ONLINE/(R)/:

- Redemptions by telephone or fax (including American FundsLine and American
FundsLine OnLine) are limited to $50,000 per shareholder each day.

- Checks must be made payable to the registered shareholder.

- Checks must be mailed to an address of record that has been used with the
account for at least 10 days.

TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE, OR AMERICAN FUNDSLINE
ONLINE

Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all
of these services. You may reinstate these services at any time.

Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, and each of their
respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liabilities (including attorney fees) which may
be incurred in connection with the exercise of these privileges, provided
American Funds Service Company employs reasonable procedures to confirm that
the instructions received from any person with appropriate account information
are genuine. If reasonable procedures are not employed, the fund may be liable
for losses due to unauthorized or fraudulent instructions.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
DISTRIBUTION ARRANGEMENTS

DIVIDENDS AND DISTRIBUTIONS

The fund declares dividends from net investment income daily and distributes
the accrued dividends, which may fluctuate, to shareholders each month.
Dividends begin accruing one day after payment for shares is received by the
fund or American Funds Service Company. Capital gains, if any, are usually
distributed in December. When a capital gain is distributed, the net asset
value per share is reduced by the amount of the payment.

You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash. Most shareholders do not elect
to take capital gain distributions in cash because these distributions reduce
principal value.

TAXES ON DISTRIBUTIONS

Distributions you receive from the fund may be subject to income tax and may
also be subject to state or local taxes - unless you are exempt from taxation.

For federal tax purposes, any taxable dividends and distributions of short-term
capital gains are treated as ordinary income. The fund's distributions of
long-term capital gains are taxable to you as long-term capital gains. Any
taxable distributions you receive from the fund will normally be taxable to you
when made, regardless of whether you reinvest distributions or receive them in
cash.

TAXES ON TRANSACTIONS

Your redemptions, including exchanges, may result in a capital gain or loss for
federal tax purposes. A capital gain or loss on your investment in the fund is
the difference between the cost of your shares, including any sales charges,
and the price you receive when you sell them.

Please see the statement of additional information, the "Welcome to the Family"
guide, and your tax adviser for further information.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the fund's
results for the past five years. Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate that
an investor would have earned or lost on an investment in the fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Deloitte & Touche LLP, whose report, along with the fund's financial
statements, is included in the statement of additional information, which is
available upon request.

<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30
----------------------------------
1999 1998 1997 1996 1995
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, $13.75 $15.69 $14.86 $14.30 $13.97
Beginning of Year
-------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 1.28 1.30 1.26 1.29 1.33
Net gains or losses on
securities (both
realized and (.17) (1.60) .83 .59 .39
unrealized)
-------------------------------------------------------------------------------
Total from investment 1.11 (.30) 2.09 1.88 .172
operations
-------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends (from net
investment income) (1.29) (1.30) (1.24) (1.32) (1.32)
Distributions (from (.05) (.34) (.02) - (.07)
capital gains)
-------------------------------------------------------------------------------
Total distributions (1.34) (1.64) (1.26) (1.32) (1.39)
-------------------------------------------------------------------------------
Net Asset Value, $13.52 $13.75 $15.69 $14.86 $14.30
End of Year
-------------------------------------------------------------------------------
Total return* 8.11% (2.40%) 14.66% 13.68% 13.34%
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of $2,777 $2,360 $2,108 $1,547 $1,111
year (in millions)
-------------------------------------------------------------------------------
Ratio of expenses to .82% .81% .82% .87% .89%
average net assets
-------------------------------------------------------------------------------
Ratio of net income 9.21% 8.76% 8.35% 8.90% 9.72%
to average net assets
-------------------------------------------------------------------------------
Portfolio turnover
rate 29.79% 54.63% 53.55% 39.74% 29.56%
* Excludes maximum sales charge of 4.75%.
</TABLE>

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

---------------------------------------------------------
APPENDIX

Moody's Investors Service, Inc. rates the long-term debt securities issued by
various entities in categories ranging from "Aaa" to "C," according to quality
as described below.

"Aaa--Best quality. These securities carry the smallest degree of investment
risk and are generally referred to as "gilt edge." Interest payments are
protected by a large, or by an exceptionally stable margin and principal is
secure. While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the fundamentally
strong position of such shares."

"Aa--High quality by all standards. They are rated lower than the best bond
because margins of protection may not be as large as in Aaa securities,
fluctuation of protective elements may be of greater amplitude, or there may be
other elements present which make the long-term risks appear somewhat greater."

"A--Upper medium grade obligations. These bonds possess many favorable
investment attributes. Factors giving security to principal and interest are
considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future."

"Baa--Medium grade obligations. Interest payments and principal security appear
adequate for the present but certain protective elements may be lacking or may
be characteristically unreliable over any great length of time. Such bonds lack
outstanding investment characteristics and, in fact, have speculative
characteristics as well."

"Ba--Have speculative elements; future cannot be considered as well assured.
The protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Bonds in this class are characterized by uncertainty of position."

"B--Generally lack characteristics of the desirable investment; assurance of
interest and principal payments or of maintenance of other terms of the
contract over any long period of time may be small."

"Caa--Of poor standing. Issues may be in default or there may be present
elements of danger with respect to principal or interest."

"Ca--Speculative in a high degree; often in default or having other marked
shortcomings."

"C--Lowest rated class of bonds; can be regarded as having extremely poor
prospects of ever attaining any real investment standing."

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

Moody's supplies numerical indicators, 1, 2 and 3 to rating categories. The
modifier 1 indicates that the obligation ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and 3 indicates
a ranking toward the lower end of that generic category.

Standard & Poor's Corporation rates the long-term debt securities issued by
various entities in categories ranging from "AAA" to "D," according to quality
as described below.

"AAA--Highest rating. Capacity to pay interest and repay principal is extremely
strong."

"AA--High grade. Very strong capacity to pay interest and repay principal.
Generally, these bonds differ from AAA issues only in a small degree."

"A--Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions, than debt in higher rated categories."

"BBB--Regarded as having adequate capacity to pay interest and repay principal.
These bonds normally exhibit adequate protection parameters, but adverse
economic conditions or changing circumstances are more likely to lead to a
weakened capacity to pay interest and repay principal than for debt in higher
rated categories."

"BB, B, CCC, CC, C--Regarded, on balance, as predominantly speculative with
respect to capacity to pay interest and repay principal in accordance with the
terms of the obligation. BB indicates the lowest degree of speculation and C
the highest degree of speculation. While such debt will likely have some
quality protective characteristics, these are outweighed by large uncertainties
or major risk exposures to adverse conditions."

"C1--Reserved for income bonds on which interest is being paid."

"D--In default and payment of interest and/or repayment of principal is in
arrears."

Standard & Poor's applies indicators "+", no character and "-" to its rating
categories. The indicators show relative standing within the major rating
categories.

AMERICAN HIGH-INCOME TRUST / PROSPECTUS

<PAGE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FOR SHAREHOLDER FOR RETIREMENT PLAN FOR DEALER
SERVICES SERVICES SERVICES
American Funds Call your employer or American Funds
Service Company plan administrator Distributors
800/421-0180 800/421-9900 ext. 11
</TABLE>

<TABLE>
<CAPTION>
<S> <C>
FOR 24-HOUR INFORMATION
American FundsLine(R) American FundsLine OnLine(R)
800/325-3590 http://www.americanfunds.com
</TABLE>

Telephone conversations may be recorded or monitored for verification,
recordkeeping and quality assurance purposes.

---------------------------------------------------------
MULTIPLE TRANSLATIONS

This prospectus may be translated into other languages. If there is any
inconsistency or ambiguity as to the meaning of any word or phrase in a
translation, the English text will prevail.

---------------------------------------------------------
OTHER FUND INFORMATION

ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS

Contains additional information about the fund including financial statements,
investment results, portfolio holdings, a statement from portfolio management
discussing market conditions and the fund's investment strategies, and the
independent auditors' report (in the annual report).

STATEMENT OF ADDITIONAL INFORMATION (SAI)

Contains more detailed information on all aspects of the fund, including the
fund's financial statements.

CODE OF ETHICS

Includes a description of the fund's personal investing policy.

The fund's code of ethics and current SAI has been filed with the Securities
and Exchange Commission ("SEC"). The SAI is incorporated by reference into
this prospectus. These and other related materials about the fund are available
for review or to be copied at the SEC's Public Reference Room in Washington,
D.C. (1-800-SEC-0330) or on the SEC's Internet Web site at http://www.sec.gov.

To request a free copy of any of the documents above:

<TABLE>
<CAPTION>
<S> <C> <C>
Call American Funds Write to the Secretary of the fund
Service Company or 333 South Hope StreetLos Angeles,
800/421-0180 ext. 1 California 90071
</TABLE>

Investment Company File No. 811-5364
Printed on recycled paper

<PAGE>

AMERICAN HIGH-INCOME TRUST

Part B
Statement of Additional Information

December 1, 1999

This document is not a prospectus but should be read in conjunction with the
current prospectus of American High-Income Trust (the "fund" or "AHIT") dated
December 1, 1999. The prospectus may be obtained from your investment dealer or
financial planner or by writing to the fund at the following address:

American High-Income Trust
Attention: Secretary
333 South Hope Street
Los Angeles, California 90071
(213) 486-9200

Shareholders who purchase shares at net asset value through eligible retirement
plans should note that not all of the services or features described below may
be available to them, and they should contact their employer for details.

TABLE OF CONTENTS

<TABLE>
<CAPTION>
Item Page No.
- ---- --------
<S> <C>
Certain Investment Limitations and Guidelines . . . . . . . . . . . 2
Description of Certain Securities and Investment Techniques . . . . 2
Fundamental Policies and Investment Restrictions. . . . . . . . . . 9
Fund Organization and Voting Rights . . . . . . . . . . . . . . . . 10
Fund Trustees and Officers. . . . . . . . . . . . . . . . . . . . . 12
Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . 19
Purchase of Shares. . . . . . . . . . . . . . . . . . . . . . . . . 22
Selling Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Shareholder Account Services and Privileges . . . . . . . . . . . . 30
Execution of Portfolio Transactions . . . . . . . . . . . . . . . . 33
General Information . . . . . . . . . . . . . . . . . . . . . . . . 33
Investment Results and Related Statistics . . . . . . . . . . . . . 35
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Financial Statements
</TABLE>

American High-Income Trust -- Page 1

<PAGE>

CERTAIN INVESTMENT LIMITATIONS AND GUIDELINES

The following limitations and guidelines are considered at the time of purchase,
under normal market conditions, and are based on a percentage of the fund's net
assets unless otherwise noted. This summary is not intended to reflect all of
the fund's investment limitations.

DEBT SECURITIES

- - The fund will invest at least 65% of its assets in high-yield debt
securities (rated Ba or below by Moody's Investor Service, Inc. and BB or
below by Standard & Poor's Corporation or unrated but determined to be of
equivalent quality) and other similar securities including preferred stock.

- - The fund may invest in debt securities rated as low as C by Moody's or D by
S&P or unrated securities determined to be of equivalent quality.

EQUITY SECURITIES AND SECURITIES WITH DEBT AND EQUITY CHARACTERISTICS

- - The fund may invest up to 25% of its assets in equity securities (including
common stock) and securities with a combination of debt and equity
characteristics (including convertible preferred stocks and convertible
debentures).

- - The fund may invest up to 5% of its assets in warrants and rights (but no
more than 2% of the fund's assets may be invested in warrants or rights
that are not listed on either the New York Stock Exchange or American Stock
Exchange).

NON-U.S. SECURITIES

- - The fund may invest up to 25% of its assets in securities of issuers
domiciled outside the U.S.

The fund may experience difficulty liquidating certain portfolio securities
during significant market declines or periods of heavy redemptions.

DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES

The descriptions below are intended to supplement the material in the prospectus
under "Investment Objectives, Strategies and Risks."

DEBT SECURITIES - Bonds and other debt securities are used by issuers to borrow
money. Issuers pay investors interest and generally must repay the amount
borrowed at maturity. Some debt securities, such as zero coupon bonds, do not
pay current interest, but are purchased at a discount from their face values.
The prices of debt securities fluctuate depending on such factors as interest
rates, credit quality, and maturity. In general their prices decline when
interest rates rise and vice versa.

High-yield, high-risk bonds rated Ba or below by Standard & Poor's Corporation
and BB or below by Moody's Investors Services, Inc. (or unrated but considered
to be of equivalent quality) are described by the rating agencies as speculative
and involve greater risk of default or price changes due to changes in the
issuer's creditworthiness than higher rated bonds, or they may

American High-Income Trust -- Page 2

<PAGE>

already be in default. The market prices of these securities may fluctuate more
than higher quality securities and may decline significantly in periods of
general economic difficulty. It may be more difficult to dispose of, or to
determine the value of, high-yield, high-risk bonds. Certain risk factors
relating to "high-yield, high-risk bonds" are discussed below.

SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES - High-yield, high-risk
bonds can be sensitive to adverse economic changes and political and
corporate developments and may be less sensitive to interest rate changes.
During an economic downturn or substantial period of rising interest rates,
highly leveraged issuers may experience financial stress that would
adversely affect their ability to service their principal and interest
payment obligations, to meet projected business goals, and to obtain
additional financing. In addition, periods of economic uncertainty and
changes can be expected to result in increased volatility of market prices
and yields of high-yield, high-risk bonds.

PAYMENT EXPECTATIONS - High-yield, high-risk bonds, like other bonds, may
contain redemption or call provisions. If an issuer exercises these
provisions in a declining interest rate market, the fund would have to
replace the security with a lower yielding security, resulting in a
decreased return for investors. If the issuer of a bond defaults on its
obligations to pay interest or principal or enters into bankruptcy
proceedings, the fund may incur losses or expenses in seeking recovery of
amounts owed to it.

LIQUIDITY AND VALUATION - There may be little trading in the secondary
market for particular bonds, which may affect adversely the fund's ability
to value accurately or dispose of such bonds. Adverse publicity and
investor perceptions, whether or not based on fundamental analysis, may
decrease the values and liquidity of high-yield, high-risk bonds,
especially in a thin market.

The Investment Adviser attempts to reduce the risks described above through
diversification of the portfolio and by credit analysis of each issuer as well
as by monitoring broad economic trends and corporate and legislative
developments, but there can be no assurance that it will be successful in doing
so.

MATURITY -- There are no restrictions on the maturity composition of the
portfolio, although it is anticipated that the fund normally will be invested
substantially in securities with maturities in excess of three years. Under
normal market conditions, longer term securities yield more than shorter term
securities, but are subject to greater price fluctuations.

EQUITY SECURITIES -- Equity securities represent an ownership position in a
company. These securities may include common stocks and securities with equity
conversion or purchase rights. The prices of equity securities fluctuate based
on changes in the financial condition of their issuers and on market and
economic conditions. The fund's results will be related to the overall markets
for these securities.

WARRANTS AND RIGHTS -- The fund may purchase warrants, which may be issued
together with bonds or preferred stocks. Warrants generally entitle the holder
to buy a proportionate amount of common stock at a specified price, usually
higher than the current market price. Warrants may be issued with an expiration
date or in perpetuity. Rights are similar to warrants except that they normally
entitle the holder to purchase common stock at a lower price than the current
market price.

American High-Income Trust -- Page 3

<PAGE>

SECURITIES WITH EQUITY AND DEBT CHARACTERISTICS -- The fund may invest in
securities that have a combination of equity and debt characteristics such as
non-convertible preferred stocks and convertible securities. These securities
may at times resemble equity more than debt and vice versa. The risks of
convertible preferred stocks are similar to those of equity securities and they
often automatically convert into common stock. Non-convertible preferred stocks
with stated redemption rates are similar to debt in that they have a stated
dividend rate akin to the coupon of a bond or note even though they are often
classified as equity securities. The prices and yields of non-convertible
preferred stocks generally move with changes in interest rates and the issuer's
credit quality, similar to the factors affecting debt securities.

Bonds, preferred stocks, and other securities may sometimes be converted into
common stock or other securities at a stated conversion ratio. These securities
prior to conversion pay a fixed rate of interest or a dividend. Because
convertible securities have both debt and equity characteristics, their value
varies in response to many factors, including the value of the underlying
equity, general market and economic conditions, convertible market valuations,
as well as changes in interest rates, credit spreads, and the credit quality of
the issuer.

INVESTING IN VARIOUS COUNTRIES -- Investing outside the U.S. involves special
risks, caused by, among other things: currency controls, fluctuating currency
values; different accounting, auditing, and financial reporting regulations and
practices in some countries; changing local and regional economic, political,
and social conditions; expropriation or confiscatory taxation; greater market
volatility; differing securities market structures; and various administrative
difficulties such as delays in clearing and settling portfolio transactions or
in receiving payment of dividends. However, in the opinion of Capital Research
and Management Company, investing outside the U.S. also can reduce certain
portfolio risks due to greater diversification opportunities.

The risks described above are potentially heightened in connection with
investments in developing countries. Although there is no universally accepted
definition, a developing country is generally considered to be a country which
is in the initial stages of its industrialization cycle with a low per capita
gross national product. For example, political and/or economic structures in
these countries may be in their infancy and developing rapidly. Historically,
the markets of developing countries have been more volatile than the markets of
developed countries. The fund may only invest in securities of issuers in
developing countries to a limited extent.

Additional costs could be incurred in connection with the fund's investment
activities outside the U.S. Brokerage commissions may be higher outside the
U.S., and the fund will bear certain expenses in connection with its currency
transactions. Furthermore, increased custodian costs may be associated with the
maintenance of assets in certain jurisdictions.

CURRENCY TRANSACTIONS - The fund can purchase and sell currencies to facilitate
securities transactions and enter into forward currency contracts to protect
against changes in currency exchange rates. A forward currency contract is an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. Forward currency contracts
entered into by the fund will involve the purchase or sale of one currency
against the U.S. dollar. While entering into forward currency transactions could
minimize the risk of loss due to a decline in the value of the hedged currency,
it could also limit any potential gain which might result from an increase in
the value of the currency. The fund will not generally attempt to protect
against all potential changes in exchange rates. The fund will segregate liquid
assets which will be marked

American High-Income Trust -- Page 4

<PAGE>

to market daily to meet its forward contract commitments to the extent required
by the Securities and Exchange Commission.

Certain provisions of the Internal Revenue Code may affect the extent to which
the fund may enter into forward contracts. Such transactions may also affect,
for U.S. federal income tax purposes, the character and timing of income, gain
or loss recognized by the fund.

RESTRICTED SECURITIES AND LIQUIDITY - The fund may purchase securities subject
to restrictions on resale. All such securities not actively traded will be
considered illiquid unless they have been specifically determined to be liquid
under procedures which have been adopted by the fund's board of trustees, taking
into account factors such as the frequency and volume of trading, the commitment
of dealers to make markets and the availability of qualified investors, all of
which can change from time to time. The fund may incur certain additional costs
in disposing of illiquid securities.

INFLATION-INDEXED BONDS - The fund may invest in inflation-indexed bonds issued
by governments, their agencies or instrumentalities, and corporations. The
principal value of this type of bond is periodically adjusted according to
changes in the rate of inflation. The interest rate is generally fixed at
issuance; however, interest payments are based on an inflation adjusted
principal value. For example, in a period of deflation, principal value will be
adjusted downward, reducing the interest payable.

Repayment of the original bond principal upon maturity (as adjusted for
inflation) is guaranteed in the case of U.S. Treasury inflation indexed bonds,
even during a period of deflation. However, the current market value of the
bonds is not guaranteed, and will fluctuate. The fund may also invest in other
bonds which may or may not provide a similar guarantee. If a guarantee of
principal is not provided, the adjusted principal value of the bond repaid at
maturity may be less than the original principal.

VARIABLE AND FLOATING RATE OBLIGATIONS - The interest rates payable on certain
securities in which the fund may invest may not be fixed but may fluctuate based
upon changes in market rates. Variable and floating rate obligations bear coupon
rates that are adjusted at designated intervals, based on the then current
market rates of interest. Variable and floating rate obligations permit the fund
to "lock in" the current interest rate for only the period until the next
scheduled rate adjustment, but the rate adjustment feature tends to limit the
extent to which the market value of the obligation will fluctuate.

REINSURANCE RELATED NOTES AND BONDS - The fund may invest in reinsurance related
notes and bonds. These instruments, which are typically issued by special
purpose reinsurance companies, transfer an element of insurance risk to the note
or bond holders. For example, the reinsurance company would not be required to
repay all or a portion of the principal value of the notes or bonds if losses
due to a catastrophic event under the policy (such as a major hurricane) exceed
certain dollar thresholds. Consequently, the fund may lose the entire amount of
its investment in such bonds or notes if such an event occurs and losses exceed
certain dollar thresholds. In this instance, investors would have no recourse
against the insurance company. These instruments may be issued with fixed or
variable interest rates and rated in a variety of credit quality categories by
the rating agencies.

PASS-THROUGH SECURITIES - The fund may invest in various debt obligations backed
by a pool of mortgages or other assets including loans on single family
residences, home equity loans,

American High-Income Trust -- Page 5

<PAGE>

mortgages on commercial buildings, credit card receivables, and leases on
airplanes or other equipment. Principal and interest payments made on the
underlying asset pools backing these obligations are typically passed through to
investors. Pass-through securities may have either fixed or adjustable coupons.
These securities include those discussed below.

"Mortgage-backed securities" are issued both by U.S. government agencies,
including the Government National Mortgage Association (GNMA), the Federal
National Mortgage Association (FNMA), and the Federal Home Loan Mortgage
Corporation (FHLMC), and by private entities. The payment of interest and
principal on securities issued by U.S. government agencies is guaranteed by the
full faith and credit of the U.S. government (in the case of GNMA securities) or
the issuer (in the case of FNMA and FHLMC securities). However, the guarantees
do not apply to the market prices and yields of these securities, which vary
with changes in interest rates.

Mortgage-backed securities issued by private entities are structured similarly
to mortgage-backed securities issued by GNMA, FNMA, and FHLMC. These securities
and the underlying mortgages are not guaranteed by government agencies. In
addition, these securities generally are structured with one or more types of
credit enhancement. Mortgage-backed securities generally permit borrowers to
prepay their underlying mortgages. Prepayments can alter the effective maturity
of these instruments.

"Collateralized mortgage obligations" (CMOs) are also backed by a pool of
mortgages or mortgage loans, which are divided into two or more separate bond
issues. CMOs issued by U.S. government agencies are backed by agency mortgages,
while privately issued CMOs may be backed by either government agency mortgages
or private mortgages. Payments of principal and interest are passed-through to
each bond at varying schedules resulting in bonds with different coupons,
effective maturities, and sensitivities to interest rates. In fact, some CMOs
may be structured in a way that when interest rates change the impact of
changing prepayment rates on these securities' effective maturities is
magnified.

"Commercial mortgage-backed securities" are backed by mortgages of commercial
property, such as hotels, office buildings, retail stores, hospitals, and other
commercial buildings. These securities may have a lower prepayment uncertainty
than other mortgage-related securities because commercial mortgage loans
generally prohibit or impose penalties on prepayments of principal. In addition,
commercial mortgage-related securities often are structured with some form of
credit enhancement to protect against potential losses on the underlying
mortgage loans. Many of the risks of investing in commercial mortgage-backed
securities reflect the risks of investing in the real estate securing the
underlying mortgage loans, including the effects of local and other economic
conditions on real estate markets, the ability of tenants to make loan payments,
and the ability of a property to attract and retain tenants.

"Asset-backed securities" are backed by other assets such as credit card,
automobile or consumer loan receivables, retail installment loans, or
participations in pools of leases. Credit support for these securities may be
based on the underlying assets and/or provided through credit enhancements by a
third party. The values of these securities are sensitive to changes in the
credit quality of the underlying collateral, the credit strength of the credit
enhancement, changes in interest rates, and at times the financial condition of
the issuer. Some asset-backed securities also may receive prepayments which can
change the securities' effective maturities.

REPURCHASE AGREEMENTS - The fund may enter into repurchase agreements, under
which it buys a security and obtains a simultaneous commitment from the seller
to repurchase the

American High-Income Trust -- Page 6

<PAGE>

security at a specified time and price. Repurchase agreements permit the fund to
maintain liquidity and earn income over periods of time as short as overnight.
The seller must maintain with the fund's custodian collateral equal to at least
100% of the repurchase price, including accrued interest, as monitored daily by
the Investment Adviser. The fund will only enter into repurchase agreements
involving securities in which it could otherwise invest and with selected banks
and securities dealers whose financial condition is monitored by the Investment
Adviser. If the seller under the repurchase agreement defaults, the fund may
incur a loss if the value of the collateral securing the repurchase agreement
has declined and may incur disposition costs in connection with liquidating the
collateral. If bankruptcy proceedings are commenced with respect to the seller,
realization upon the collateral by the fund may be delayed or limited.

U.S. GOVERNMENT SECURITIES -- Securities guaranteed by the U.S. Government
include: (1) direct obligations of the U.S. Treasury (such as Treasury bills,
notes and bonds) and (2) federal agency obligations guaranteed as to principal
and interest by the U.S. Treasury. For these securities, the payment of
principal and interest is unconditionally guaranteed by the U.S. Government, and
thus they are of the highest possible credit quality. Such securities are
subject to variations in market value due to fluctuations in interest rates,
but, if held to maturity, will be paid in full.

Certain securities issued by U.S. Government instrumentalities and certain
federal agencies are neither direct obligations of, nor guaranteed by, the
Treasury. However, they generally involve federal sponsorship in one way or
another; some are backed by specific types of collateral; some are supported by
the issuer's right to borrow from the Treasury; some are supported by the
discretionary authority of the Treasury to purchase certain obligations of the
issuer; and others are supported only by the credit of the issuing government
agency or instrumentality. These agencies and instrumentalities include, but are
not limited to, Farmers Home Administration, Federal Home Loan Bank, Federal
Home Loan Mortgage Corporation, Federal National Mortgage Association, Tennessee
Valley Authority, and Federal Farm Credit Bank System.

CASH AND CASH EQUIVALENTS - These securities include (i) commercial paper
(short-term notes up to 9 months in maturity issued by corporations or
governmental bodies), (ii) commercial bank obligations (e.g., certificates of
deposit, bankers' acceptances (time drafts on a commercial bank where the bank
accepts an irrevocable obligation to pay at maturity)), (iii) savings
association and saving bank obligations (e.g., certificates of deposit issued by
savings banks or savings associations), (iv) securities of the U.S. Government,
its agencies or instrumentalities that mature, or may be redeemed, in one year
or less, and (v) corporate bonds and notes that mature, or that may be redeemed,
in one year or less.

FORWARD COMMITMENTS - The fund may enter into commitments to purchase or sell
securities at a future date. When the fund agrees to purchase such securities it
assumes the risk of any decline in value of the security beginning on the date
of the agreement. When the fund agrees to sell such securities it does not
participate in further gains or losses with respect to the securities beginning
on the date of the agreement. If the other party to such a transaction fails to
deliver or pay for the securities, the fund could miss a favorable price or
yield opportunity, or could experience a loss.

As the fund's aggregate commitments under these transactions increase, the
opportunity for leverage similarly increases. The fund will not use these
transactions for the purpose of leveraging and will segregate liquid assets
which will be marked to market daily in an amount sufficient to meet its payment
obligations in these transactions. Although these transactions will

American High-Income Trust -- Page 7

<PAGE>

not be entered into for leveraging purposes, to the extent the fund's aggregate
commitments under these transactions exceed its segregated assets, the fund
temporarily could be in a leveraged position (because it may have an amount
greater than its net assets subject to market risk). Should market values of the
fund's portfolio securities decline while the fund is in a leveraged position,
greater depreciation of its net assets would likely occur than were it not in
such a position. The fund will not borrow money to settle these transactions and
therefore, will liquidate other portfolio securities in advance of settlement if
necessary to generate additional cash to meet its obligations thereunder.

The fund may also enter into reverse repurchase agreements and "roll"
transactions. A reverse repurchase agreement is the sale of a security by a fund
and its agreement to repurchase the security at a specified time and price. A
"roll" transaction is the sale of mortgage-backed or other securities together
with a commitment to purchase similar, but not identical securities at a later
date. The fund assumes the rights and risks of ownership, including the risk of
price and yield fluctuations as of the time of the agreement. The fund intends
to treat roll transactions as two separate transactions: one involving the
purchase of a security and a separate transaction involving the sale of a
security. Since the fund does not intend to enter into roll transactions for
financing purposes, it may treat these transactions as not falling within the
definition of "borrowing" set forth in Section 2(a)(23) of the Investment
Company Act of 1940. The fund will segregate liquid assets which will be marked
to market daily in an amount sufficient to meet its payment obligations under
"roll" transactions and reverse repurchase agreements with broker-dealers (no
collateral is required for reverse repurchase agreements with banks).

The fund may also engage in the following investment practices, although it has
no current intention to do so over the next twelve months:

LOANS OF PORTFOLIO SECURITIES -- The fund is authorized to lend portfolio
securities to selected securities dealers or other institutional investors whose
financial condition is monitored by the Investment Adviser. The borrower must
maintain with the fund's custodian collateral consisting of cash, cash
equivalents or U.S. Government securities equal to at least 100% of the value of
the borrowed securities, plus any accrued interest. The Investment Adviser will
monitor the adequacy of the collateral on a daily basis. The fund may at any
time call a loan of its portfolio securities and obtain the return of the loaned
securities. The fund will receive any interest paid on the loaned securities and
a fee or a portion of the interest earned on the collateral. The fund will limit
its loans of portfolio securities to an aggregate of 10% of the value of its
total assets, measured at the time any such loan is made.

OPTIONS ON U.S. TREASURY SECURITIES -- The fund may purchase put and call
options on U.S. Treasury securities ("Treasury securities"). A put (call) option
gives the fund as purchaser of the option the right (but not the obligation) to
sell (buy) a specified amount of Treasury securities at the exercise price until
the expiration of the option. The value of a put (call) option on Treasury
securities generally increases (decreases) with an increase (decrease) in
prevailing interest rates. Accordingly, the fund would purchase puts (calls) in
anticipation of, or to protect against, an increase in interest rates. These
options are listed on an exchange or traded over-the-counter ("OTC options").
Exchange-traded options have standardized exercise prices and expiration dates;
OTC options are two-party contracts with negotiated exercise prices and
expiration dates. OTC options differ from exchange-traded options in that OTC
options are transacted with dealers directly and not through a clearing
corporation (which guarantees performance). Consequently, there is a risk of
non-performance by the dealer. Since no exchange is involved, OTC options are
valued on the basis of a quote provided by the dealer. In the case of OTC
options, there can be

American High-Income Trust -- Page 8

<PAGE>

no assurance that a liquid secondary market will exist for any particular option
at any specific time.

* * * * * *

PORTFOLIO TURNOVER - Portfolio changes will be made without regard to the length
of time particular investments may have been held. Short-term trading profits
are not the fund's objective and changes in its investments are generally
accomplished gradually, though short-term transactions may occasionally be made.
High portfolio turnover (100% or more) involves correspondingly greater
transaction costs in the form of dealer spreads or brokerage commissions, and
may result in the realization of net capital gains, which are taxable when
distributed to shareholders.

Fixed-income securities are generally traded on a net basis and usually neither
brokerage commissions nor transfer taxes are involved.

The fund's portfolio turnover rate would equal 100% if each security in the
fund's portfolio were replaced once per year. See "Financial Highlights" in the
prospectus for the fund's annual portfolio turnover for each of the last five
fiscal periods.

FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS

FUNDAMENTAL POLICIES - The fund has adopted the following fundamental policies
and investment restrictions which may not be changed without approval by holders
of a majority of its outstanding shares. Such majority is defined in the
Investment Company Act of 1940 ("1940 Act") as the vote of the lesser of (i) 67%
or more of the outstanding voting securities present at a meeting, if the
holders of more than 50% of the outstanding voting securities are present in
person or by proxy, or (ii) more than 50% of the outstanding voting securities.
All percentage limitations are considered at the time securities are purchased
and are based on the fund's net assets unless otherwise indicated. None of the
following investment restrictions involving a maximum percentage of assets will
be considered violated unless the excess occurs immediately after, and is caused
by, an acquisition by the fund.

These restrictions provide that the fund may not:

1. Purchase any security (other than securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities) if immediately after and
as a result of such investment, more than 5% of the fund's total assets would be
invested in securities of the issuer

2. Invest 25% or more of the value of its total assets in the securities of
issuers conducting their principal business activities in the same industry.

3. Invest in companies for the purpose of exercising control or management;

4. Buy or sell real estate or commodities or commodity contracts; however, the
fund may invest in debt securities secured by real estate or interests therein
or issued by companies which invest in real estate or interests therein,
including real estate investment trusts, and may purchase or sell currencies
(including forward currency contracts);

American High-Income Trust -- Page 9

<PAGE>

5. Acquire illiquid securities, if, immediately after and as a result, the
value of illiquid securities held by the fund would exceed, in the aggregate,
15% of the fund's net assets;

6. Engage in the business of underwriting securities of other issuers, except
to the extent that the disposal of an investment position may technically cause
it to be considered an underwriter as that term is defined under the Securities
Act of 1933;

7. Lend any security or make any other loan if, as a result, more than 15% of
its total assets would be lent to third parties, but this limitation does not
apply to purchases of debt securities or to repurchase agreements;

8. Sell securities short, except to the extent that the fund contemporaneously
owns or has the right to acquire at no additional cost securities identical to
those sold short;

9. Purchase securities on margin, provided that the fund may obtain such
short-term credits as may be necessary for the clearance of purchases and sales
of securities;

10. Borrow money, except from banks for temporary or emergency purposes not in
excess of 5% of the value of the fund's total assets. The fund will not purchase
securities while such borrowings are outstanding. This restriction shall not
prevent the fund from entering into reverse repurchase agreements or "roll"
transactions, provided that these transactions and any other transactions
constituting borrowing by the fund may not exceed one-third of the fund's total
assets. In the event that the asset coverage for the fund's borrowings falls
below 300%, the fund will reduce, within three days (excluding Sundays and
holidays), the amount of its borrowings in order to provide for 300% asset
coverage;

11. Write, purchase or sell put options, call options or combinations thereof,
except that this shall not prevent the purchase of put or call options on
currencies or U. S. Government securities.

NON-FUNDAMENTAL POLICIES -- The following non-fundamental policies may be
changed without shareholder approval:

1. The fund does not currently intend to lend portfolio securities or other
assets to third parties, except by acquiring loans, loan participations, or
forms of direct debt instruments. (This limitation does not apply to purchases
of debt securities or to repurchase agreements.)

2. The fund may not invest in securities of other investment companies, except
as permitted by the Investment Company Act of 1940, as amended.

3. The fund will not invest in securities of an issuer if the investment would
cause the fund to own more than 10% of the outstanding voting securities of any
one issuer.

FUND ORGANIZATION AND VOTING RIGHTS

The fund, an open-end, diversified management investment company, was organized
as a Massachusetts business trust on October 1, 1987.

All fund operations are supervised by the fund's board of trustees which meets
periodically and performs duties required by applicable state and federal laws.
Members of the board who are not

American High-Income Trust -- Page 10

<PAGE>

employed by Capital Research and Management Company or its affiliates are paid
certain fees for services rendered to the fund as described in "Trustees and
Trustee Compensation" below. They may elect to defer all or a portion of these
fees through a deferred compensation plan in effect for the fund.

The fund does not hold annual meetings of shareholders. However, significant
matters which require shareholder approval, such as certain elections of board
members or a change in a fundamental investment policy, will be presented to
shareholders at a meeting called for such purpose. Shareholders have one vote
per share owned. At the request of the holders of at least 10% of the shares,
the fund will hold a meeting at which any member of the board could be removed
by a majority vote.

American High-Income Trust -- Page 11

<PAGE>

FUND TRUSTEES AND OFFICERS

Trustees and Trustee Compensation

<TABLE>
<CAPTION>
AGGREGATE
COMPENSATION TOTAL COMPENSATION
(INCLUDING (INCLUDING VOLUNTARILY
VOLUNTARILY DEFERRED TOTAL
DEFERRED COMPENSATION/1/) FROM NUMBER
COMPENSATION/1/) ALL FUNDS MANAGED BY OF FUND
FROM THE FUND CAPITAL RESEARCH AND BOARDS
POSITION PRINCIPAL OCCUPATION(S) DURING FISCAL YEAR MANAGEMENT COMPANY ON WHICH
WITH DURING ENDED OR ITS AFFILIATES/2/ FOR THE TRUSTEE
NAME, ADDRESS AND AGE REGISTRANT PAST 5 YEARS SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1999 SERVES/2/
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Richard G. Capen, Trustee Corporate Director and none/3/ $ 45,250 14
Jr. author; former United
6077 San Elijo, Box States Ambassador to Spain;
2494 former Vice Chairman of the
Rancho Santa Fe, CA Board, Knight-Ridder, Inc.,
92067 former Chairman and
Age: 65 Publisher, The Miami Herald
- -----------------------------------------------------------------------------------------------------------------------------------
H. Frederick Trustee Private Investor. Former $5,250/4/ $211,600 19
Christie President and Chief
P.O. Box 144 Executive Officer, The
Palos Verdes Mission Group (non-utility
Estates, CA 90274 holding company, subsidiary
Age: 66 of Southern California
Edison Company)
- -----------------------------------------------------------------------------------------------------------------------------------
+ Don R. Conlan Trustee President (retired), The none/5/ none/5/ 12
1630 Milan Avenue Capital Group Companies,
South Pasadena, CA Inc.
91030
Age: 63
- -----------------------------------------------------------------------------------------------------------------------------------
Diane C. Creel Trustee CEO and President, The $4,400/4/ $ 48,000 12
100 W. Broadway Earth Technology
Suite 5000 Corporation (international
Long Beach, CA 90802 consulting engineering)
Age: 51
- -----------------------------------------------------------------------------------------------------------------------------------
Martin Fenton Trustee Chairman, Senior Resource $4,600/4/ $132,600 15
4660 La Jolla Group LLC (development and
Village Drive management of senior living
Suite 725 communities)
San Diego, CA 92122
Age: 64
- -----------------------------------------------------------------------------------------------------------------------------------
Leonard R. Fuller Trustee President, Fuller $ 5,000 $ 63,267 13
4337 Marina City Consulting (financial
Drive management consulting firm)
Suite 841 ETN
Marina del Rey, CA
90292
Age: 53
- -----------------------------------------------------------------------------------------------------------------------------------
+* Abner D. Trustee Senior Vice President and none/5/ none/5/ 12
Goldstine Director, Capital Research
Age: 69 and Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
+** Paul G. Haaga, Chairman Executive Vice President none/5/ none/5/ 14
Jr. of and Director, Capital
Age: 50 the Board Research and Management
Company
- -----------------------------------------------------------------------------------------------------------------------------------
Richard G. Newman Trustee Chairman, President and $4,600/4/ $107,100 13
3250 Wilshire CEO, AECOM Technology
Boulevard Corporation (architectural
Los Angeles, CA engineering)
90010-1599
Age: 65
- -----------------------------------------------------------------------------------------------------------------------------------
Frank M. Sanchez Trustee President, The Sanchez none/3/ $ 5,050 12
5234 Via San Family Corporation dba
Delarro, #1 McDonald's Restaurants
Los Angeles, CA (McDonald's licensee)
90022
Age: 55
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

American High-Income Trust -- Page 12

<PAGE>

American High-Income Trust -- Page 13

<PAGE>

American High-Income Trust -- Page 14

<PAGE>

+ "Interested persons" within the meaning of the 1940 Act on the basis of their
affiliation with the fund's Investment Adviser, Capital Research and
Management Company or the parent company of the Investment Adviser, The
Capital Group Companies, Inc.
* Address is 11100 Santa Monica Boulevard, Los Angeles, CA 90025
** Address is 333 South Hope Street, Los Angeles, CA 90071
1 Amounts may be deferred by eligible Trustees under a non-qualified deferred
compensation plan adopted by the fund in 1993. Deferred amounts accumulate at
an earnings rate determined by the total return of one or more funds in The
American Funds Group as designated by the Trustees.

2 Capital Research and Management Company manages The American Funds Group
consisting of 29 funds: AMCAP Fund, Inc., American Balanced Fund, Inc.,
American High-Income Municipal Bond Fund, Inc., American High-Income Trust,
American Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash
Management Trust of America, Capital Income Builder, Inc., Capital World
Growth and Income Fund, Inc., Capital World Bond Fund, Inc., EuroPacific
Growth Fund, Fundamental Investors, Inc., The Growth Fund of America, Inc.,
The Income Fund of America, Inc., Intermediate Bond Fund of America, The
Investment Company of America, Limited Term Tax-Exempt Bond Fund of America,
The New Economy Fund, New Perspective Fund, Inc., New World Fund, Inc.,
SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of America, Inc., The
Tax-Exempt Fund of California, The Tax-Exempt Fund of Maryland, The Tax-Exempt
Fund of Virginia, The Tax-Exempt Money Fund of America, The U. S. Treasury
Money Fund of America, U.S. Government Securities Fund and Washington Mutual
Investors Fund, Inc. Capital Research and Management Company also manages
American Variable Insurance Series and Anchor Pathway Fund, which serve as the
underlying investment vehicle for certain variable insurance contracts; and
Endowments, whose shareholders are limited to (i) any entity exempt from
taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended ("501(c)(3) organization"); (ii) any trust, the present or future
beneficiary of which is a 501(c)(3) organization, and (iii) any other entity
formed for the primary purpose of benefiting a 501(c)(3) organization. An
affiliate of Capital Research and Management Company, Capital International,
Inc., manages Emerging Markets Growth Fund, Inc.

3 Richard G. Capen, Jr. and Frank M. Sanchez were elected as Trustees of
the Fund on 11/18/99 and had not received any remuneration from the Fund as of
its 9/30/99 fiscal year end.

4 Since the deferred compensation plan's adoption, the total amount of deferred
compensation accrued by the fund (plus earnings thereon) as of fiscal year
ended September 30, 1999 for participating Trustees is as follows: H.
Frederick Christie ($8,895), Diane C. Creel ($5,137), Martin Fenton ($13,705),
and Richard G. Newman ($28,638). Amounts deferred and accumulated earnings
thereon are not funded and are general unsecured liabilities of the fund until
paid to the Trustees.

5 Don R. Conlan, Abner D. Goldstine, and Paul G. Haaga, Jr. are affiliated with
the Investment Adviser and, accordingly, receive no compensation from the
fund.

American High-Income Trust -- Page 15

<PAGE>

OFFICERS

<TABLE>
<CAPTION>
POSITION(S) PRINCIPAL OCCUPATION(S)
NAME AND ADDRESS AGE WITH REGISTRANT DURING
- -------------------------------------------------- PAST 5 YEARS
-----------------------------
<S> <C> <C> <C>
David C. Barclay 42 President and PEO Vice President, Capital
11100 Santa Monica Research and Management
Blvd. Company
Los Angeles, CA 90025
- -------------------------------------------------------------------------------
Michael J. Downer 44 Vice President Senior Vice President - Fund
333 South Hope Street Business
Los Angeles, CA 90071 Management Group, Capital
Research
and Management Company
- -------------------------------------------------------------------------------
Susan M. Tolson 36 Vice President Senior Vice President and
11100 Santa Monica Director, Capital Research
Blvd. Company*
Los Angeles, CA 90025
- -------------------------------------------------------------------------------
Julie F. Williams 51 Secretary Vice President - Fund
333 South Hope Street Business
Los Angeles, CA 90071 Management Group, Capital
Research
and Management Company
- -------------------------------------------------------------------------------
Anthony W. Hynes, Jr. 37 Treasurer Vice President - Fund
135 South State Business
College Blvd. Management Group, Capital
Brea, CA 92821 Research
and Management Company
- -------------------------------------------------------------------------------
Kimberly S. Verdick 35 Assistant Assistant Vice President -
333 South Hope Street Secretary Fund Business
Los Angeles, CA 90071 Management Group, Capital
Research
and Management Company
- -------------------------------------------------------------------------------
Todd L. Miller 41 Assistant Treasurer Assistant Vice President -
135 South State Fund Business Management
College Blvd. Group, Capital Research and
Brea, CA 92821 Management Company
- -------------------------------------------------------------------------------
</TABLE>

All of the officers listed are officers, and/or directors/trustees of one or
more of the other funds for which Capital Research and Management Company serves
as Investment Adviser.

No compensation is paid by the fund to any officer or Trustee who is a director,
officer or employee of the Investment Adviser or affiliated companies. The fund
pays annual fees of $3,000 to Trustees who are not affiliated with the
Investment Adviser, plus $200 for each Board of Trustees meeting attended, plus
$200 for each meeting attended as a member of a committee of the Board of
Trustees. No pension or retirement benefits are accrued as part of fund
expenses. The Trustees may elect, on a voluntary basis, to defer all or a
portion of their fees through a deferred compensation plan in effect for the
fund. The fund also reimburses certain expenses of the Trustees who are not
affiliated with the Investment Adviser. As of November 1, 1999 the officers and
Directors of the fund and their families, as a group, owned beneficially or of
record less than 1% of the outstanding shares of the fund.

American High-Income Trust -- Page 16

<PAGE>

MANAGEMENT

INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains research
facilities in the U.S. and abroad (Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Hong Kong, Singapore and Tokyo), with a staff
of professionals, many of whom have a number of years of investment experience.
The Investment Adviser is located at 333 South Hope Street, Los Angeles, CA
90071, and at 135 South State College Boulevard, Brea, CA 92821. The Investment
Adviser's research professionals travel several million miles a year, making
more than 5,000 research visits in more than 50 countries around the world. The
Investment Adviser believes that it is able to attract and retain quality
personnel. The Investment Adviser is a wholly owned subsidiary of The Capital
Group Companies, Inc.

An affiliate of the Investment Adviser compiles indices for major stock markets
around the world and compiles and edits the Morgan Stanley Capital International
Perspective, providing financial and market information about more than 2,400
companies around the world.

The Investment Adviser is responsible for managing more than $200 billion of
stocks, bonds and money market instruments and serves over eight million
investors of all types throughout the world. These investors include privately
owned businesses and large corporations as well as schools, colleges,
foundations and other non-profit and tax-exempt organizations.

INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and Service
Agreement (the "Agreement") between the fund and the Investment Adviser will
continue in effect until October 31, 2000, unless sooner terminated, and may be
renewed from year to year thereafter, provided that any such renewal has been
specifically approved at least annually by (i) the Board of Trustees, or by the
vote of a majority (as defined in the 1940 Act) of the outstanding voting
securities of the fund, and (ii) the vote of a majority of Trustees who are not
parties to the Agreement or interested persons (as defined in the 1940 Act) of
any such party, cast in person at a meeting called for the purpose of voting on
such approval. The Agreement provides that the Investment Adviser has no
liability to the fund for its acts or omissions in the performance of its
obligations to the fund not involving willful misconduct, bad faith, gross
negligence or reckless disregard of its obligations under the Agreement. The
Agreement also provides that either party has the right to terminate it, without
penalty, upon 60 days' written notice to the other party and that the Agreement
automatically terminates in the event of its assignment (as defined in the 1940
Act).

The Investment Adviser, in addition to providing investment advisory services,
furnishes the services and pays the compensation and travel expenses of persons
to perform the executive, administrative, clerical and bookkeeping functions of
the fund, and provides suitable office space, necessary small office equipment
and utilities, general purpose accounting forms, supplies, and postage used at
the offices of the fund. The fund pays all expenses not assumed by the
Investment Adviser, including, but not limited to, custodian, stock transfer and
dividend disbursing fees and expenses; costs of the designing, printing and
mailing of reports, prospectuses, proxy statements, and notices to its
shareholders; taxes; expenses of the issuance and redemption of shares of the
fund (including stock certificates, registration and qualification fees and
expenses); expenses pursuant to the fund's Plan of Distribution (described
below); legal and auditing expenses; compensation, fees, and expenses paid to
directors unaffiliated with the Investment Adviser; association dues; costs of
stationery and forms prepared exclusively for the fund; and costs of assembling
and storing shareholder account data.

American High-Income Trust -- Page 17

<PAGE>

The management fee is based upon the net assets of the fund and monthly gross
investment income. Gross investment income means gross income, computed without
taking account of gains or losses from sales of capital assets, but including
original issue discount as defined for federal income tax purposes. The Internal
Revenue Code in general defines original issue discount to mean the difference
between the issue price and the stated redemption price at maturity of certain
debt obligations. The holder of such indebtedness is in general required to
treat as ordinary income the proportionate part of the original issue discount
attributable to the period during which the holder held the indebtedness.

The management fee is based upon the annual rates of 0.30% of the first $60
million of the fund's average net assets, 0.21% on average net assets in excess
of $60 million but not exceeding $1 billion, 0.18% on average net assets in
excess of $1 billion, but not exceeding $3 billion, plus 0.16% on average net
assets in excess of $3 billion, plus 3% of the first $8,333,333 of monthly gross
investment income, plus 2.5% of such income between $8,333,333 and $25 million,
plus 2% of such income in excess of $25 million. Assuming net assets of $3
billion and gross investment income levels of 5%, 6%, 7%, 8% and 9%, management
fees would be 0.33%, 0.36%, 0.38%, 0.41% and 0.43%, respectively.

The Investment Adviser has agreed that in the event the expenses of the fund
(with the exclusion of interest, taxes, brokerage costs, extraordinary expenses
such as litigation and acquisitions or other expenses excludable under
applicable state securities laws or regulations) for any fiscal year ending ona
date on which the Agreement is in effect, exceed the expense limitations, if
any, applicable to the fund pursuant to state securities laws or any regulations
thereunder, it will reduce its fee by the extent of such excess and, if required
pursuant to any such laws or any regulations thereunder, will reimburse the fund
in the amount of such excess.

For the fiscal years ended September 30, 1999, 1998, and 1997, the Investment
Adviser received advisory fees of $12,363,000, $10,751,000, and $8,242,000,
respectively.

PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the "Principal
Underwriter") is the principal underwriter of the fund's shares. The Principal
Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92821, 3500 Wiseman Boulevard, San
Antonio, TX 78251, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. The fund has adopted a Plan of
Distribution (the Plan), pursuant to rule 12b-1 under the 1940 Act. The
Principal Underwriter receives amounts payable pursuant to the Plan and
commissions consisting of that portion of the sales charge remaining after the
discounts which it allows to investment dealers. Commissions retained by the
Principal Underwriter on sales of fund shares during the fiscal year ended
September 30, 1999 amounted to $2,990,000 after allowance of $12,281,000 to
dealers. During the fiscal years ended 1998 and 1997 the Principal Underwriter
retained $3,016,000 and $2,289,000, respectively after an allowance of
$12,527,000 and $9,491,000 to dealers, respectively.

As required by rule 12b-1 and the 1940 Act, the Plan (together with the
Principal Underwriting Agreement) has been approved by the full Board of
Trustees and separately by a majority of the trustees who are not "interested
persons" of the fund and who have no direct or indirect financial interest in
the operation of the Plan or the Principal Underwriting Agreement, and the Plan
has been approved by the vote of a majority of the outstanding voting securities
of the fund. The officers and trustees who are "interested persons" of the fund
may be considered to have a direct or indirect financial interest in the
operation of the Plan due to present or past affiliations with the

American High-Income Trust -- Page 18

<PAGE>

Investment Adviser and related companies. Potential benefits of the Plan to the
fund include improved shareholder services, savings to the fund in transfer
agency costs, savings to the fund in advisory fees and other expenses, benefits
to the investment process from growth or stability of assets and maintenance of
a financially healthy management organization. The selection and nomination of
trustees who are not "interested persons" of the fund are committed to the
discretion of the trustees who are not "interested persons" during the existence
of the Plan. The Plan is reviewed quarterly and must be renewed annually by the
Board of Trustees.

Under the Plan the fund may expend up to 0.30% of its net assets annually to
finance any activity which is primarily intended to result in the sale of fund
shares, provided the fund's Board of Trustees has approved the category of
expenses for which payment is being made.

These include service fees for qualified dealers and dealer commissions and
wholesaler compensation on sales of shares exceeding $1 million (including
purchases by any employer-sponsored 403(b) plan, any defined contribution plan
qualified under Section 401(a) of the Internal Revenue Code including a "401(k)"
plan with 100 or more eligible employees or a community foundation).

Commissions on sales of shares exceeding $1 million (including purchases by any
employer-sponsored 403(b) plan or purchases by any defined contribution plan
qualified under Section 401(a) of the Internal Revenue Code, including any
"401(k)" plan with 100 or more eligible employees) in excess of the Plan
limitation not reimbursed during the most recent fiscal quarter are recoverable
for five quarters, provided that such commissions do not exceed the annual
expense limit. After five quarters, commissions are not recoverable. During the
fiscal year ended September 30, 1999, the fund paid or accrued $6,614,000 for
compensation to dealers under the Plan. As of September 30, 1999, accrued and
unpaid distribution expenses were $434,000.

The Glass-Steagall Act and other applicable laws, among other things, generally
prohibit commercial banks from engaging in the business of underwriting, selling
or distributing securities, but permit banks to make shares of mutual funds
available to their customers and to perform administrative and shareholder
servicing functions. However, judicial or administrative decisions or
interpretations of such laws, as well as changes in either federal or state
statutes or regulations relating to the permissible activities of banks or their
subsidiaries or affiliates, could prevent a bank from continuing to perform all
or a part of its servicing activities. If a bank were prohibited from so acting,
shareholder clients of such bank would be permitted to remain shareholders of
the fund and alternate means for continuing the servicing of such shareholders
would be sought. In such event, changes in the operation of the fund might occur
and shareholders serviced by such bank might no longer be able to avail
themselves of any automatic investment or other services then being provided by
such bank. It is not expected that shareholders would suffer adverse financial
consequences as a result of any of these occurrences.

In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein, and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.

American High-Income Trust -- Page 19

<PAGE>

DIVIDENDS, DISTRIBUTIONS AND TAXES

DIVIDENDS - The fund intends to follow the practice of distributing
substantially all of its investment company taxable income which includes any
excess of net realized short-term gains over net realized long-term capital
losses. Additional distributions may be made, if necessary. The fund also
intends to follow the practice of distributing the entire excess of net realized
long-term capital gains over net realized short-term capital losses. However,
the fund may retain all or part of such gain for reinvestment, after paying the
related federal taxes for which shareholders may then be able to claim a credit
against their federal tax liability. If the fund does not distribute the amount
of capital gain and/or net investment income required to be distributed by an
excise tax provision of the Code, the fund may be subject to that excise tax. In
certain circumstances, the fund may determine that it is in the interest of
shareholders to distribute less than the required amount. In this case, the fund
will pay any income or excise taxes due.

Dividends will be reinvested in shares of the fund unless shareholders indicate
in writing that they wish to receive them in cash or in shares of other American
Funds, as provided in the prospectus.

TAXES - The fund intends to elect to be treated as a regulated investment
company under Subchapter M of the Code. A regulated investment company
qualifying under Subchapter M of the Code is required to distribute to its
shareholders at least 90% of its investment company taxable income (including
the excess of net short-term capital gain over net long-term capital losses) and
generally is not subject to federal income tax to the extent that it distributes
annually its investment company taxable income and net realized capital gains in
the manner required under the Code. The fund intends to distribute annually all
of its investment company taxable income and net realized capital gains and
therefore does not expect to pay federal income tax, although in certain
circumstances the fund may determine that it is in the interest of shareholders
to distribute less than that amount.

Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gain (both long-term and short-term)
for the one-year period ending on October 31 (as though the one-year period
ending on October 31 were the regulated investment company's taxable year), and
(iii) the sum of any untaxed, undistributed net investment income and net
capital gains of the regulated investment company for prior periods. The term
"distributed amount" generally means the sum of (i) amounts actually distributed
by the fund from its current year's ordinary income and capital gain net income
and (ii) any amount on which the fund pays income tax during the periods
described above. The fund intends to distribute net investment income and net
capital gains so as to minimize or avoid the excise tax liability.

Investment company taxable income generally includes dividends, interest, net
short-term capital gains in excess of net long-term capital losses, and certain
foreign currency gains, if any, less expenses and certain foreign currency
losses, if any. Net capital gains for a fiscal year are computed by taking into
account any capital loss carry-forward of the fund.

If any net long-term capital gains in excess of net short-term capital losses
are retained by a fund for reinvestment, requiring federal income taxes to be
paid thereon by the fund, the fund intends

American High-Income Trust -- Page 20

<PAGE>

to elect to treat such capital gains as having been distributed to shareholders.
As a result, each shareholder will report such capital gains as long-term
capital gains taxable to individual shareholders at a maximum 20% capital gains
rate, will be able to claim a pro rata share of federal income taxes paid by the
fund on such gains as a credit against personal federal income tax liability,
and will be entitled to increase the adjusted tax basis on fund shares by the
difference between a pro rata share of the retained gains and their related tax
credit.

Distributions of investment company taxable income are taxable to shareholders
as ordinary income.

Distributions of the excess of net long-term capital gains over net short-term
capital losses which the fund properly designates as "capital gain dividends"
generally will be taxable to individual shareholders at a maximum 20% capital
gains rate, regardless of the length of time the shares of the fund have been
held by such shareholders. Such distributions are not eligible for the
dividends-received deduction. Any loss realized upon the redemption of shares
held at the time of redemption for six months or less from the date of their
purchase will be treated as a long-term capital loss to the extent of any
amounts treated as distributions of long-term capital gain during such six-month
period.

Distributions of investment company taxable income and net realized capital
gains to individual shareholders will be taxable as described above, whether
received in shares or in cash. Shareholders electing to receive distributions in
the form of additional shares will have a cost basis for federal income tax
purposes in each share so received equal to the net asset value of a share on
the reinvestment date.

All distributions of investment company taxable income and net realized capital
gain, whether received in shares or in cash, must be reported by each
shareholder subject to tax on his or her federal income tax return. Dividends
and capital gains distributions declared in October, November or December and
payable to shareholders of record in such a month will be deemed to have been
received by shareholders on December 31 if paid during January of the following
year. Redemptions of shares, including exchanges for shares of another American
Fund, may result in tax consequences (gain or loss) to the shareholder and must
also be reported on the shareholder's federal income tax return.

Dividends from domestic corporations are expected to comprise some portion of
the fund's gross income. To the extent that such dividends constitute any of the
fund's gross income, a portion of the income distributions of the fund will be
eligible for the deduction for dividends received by corporations. Shareholders
will be informed of the portion of dividends which so qualify. The
dividends-received deduction is reduced to the extent that either the fund
shares, or the underlying shares of stock held by the fund, with respect to
which dividends are received, are treated as debt-financed under federal income
tax law and is eliminated if the shares are deemed to have been held by the
shareholder or the fund, as the case may be, for less than 46 days.

Distributions by the fund result in a reduction in the net asset value of the
fund's shares. Should a distribution reduce the net asset value below a
shareholder's cost basis, such distribution would nevertheless be taxable to the
shareholder as ordinary income or capital gain as described above, even though,
from an investment standpoint, it may constitute a partial return of investment
capital. For this reason, investors should consider the tax implications of
buying shares just prior to a distribution. The price of shares purchased at
that time includes the amount of the forthcoming distribution. Those purchasing
just prior to a distribution will then receive a

American High-Income Trust -- Page 21

<PAGE>

partial return of investment capital upon the distribution, which will
nevertheless be taxable to them.

A portion of the difference between the issue price of zero coupon securities
and their face value ("original issue discount") is considered to be income to
the fund each year, even though the fund will not receive cash interest payments
from these securities. This original issue discount (imputed income) will
comprise a part of the investment company taxable income of the fund which must
be distributed to shareholders in order to maintain the qualification of the
fund as a regulated investment company and to avoid federal income tax at the
level of the fund. Shareholders will be subject to income tax on such original
issue discount, whether or not they elect to receive their distributions in
cash.

The fund will be required to report to the IRS all distributions of investment
company taxable income and capital gains as well as gross proceeds from the
redemption or exchange of fund shares, except in the case of certain exempt
shareholders. Under the backup withholding provisions of Section 3406 of the
Code, distributions of investment company taxable income and capital gains and
proceeds from the redemption or exchange of the shares of a regulated investment
company may be subject to withholding of federal income tax at the rate of 31%
in the case of non-exempt U.S. shareholders who fail to furnish the investment
company with their taxpayer identification numbers and with required
certifications regarding their status under the federal income tax law.
Withholding may also be required if the fund is notified by the IRS or a broker
that the taxpayer identification number furnished by the shareholder is
incorrect or that the shareholder has previously failed to report interest or
dividend income. If the withholding provisions are applicable, any such
distributions and proceeds, whether taken in cash or reinvested in additional
shares, will be reduced by the amounts required to be withheld.

Shareholders of the fund may be subject to state and local taxes on
distributions received from the fund and on redemptions of the fund's shares.

Each distribution is accompanied by a brief explanation of the form and
character of the distribution. In January of each year fund shareholders will
receive a statement of the federal income tax status of all distributions.

The foregoing discussion of U.S. federal income tax law relates solely to the
application of that law to U.S. persons, i.e., U.S. citizens and residents and
U.S. corporations, partnerships, trusts and estates. Each shareholder who is not
a U.S. person should consider the U.S. and foreign tax consequences of ownership
of shares of the fund, including the possibility that such a shareholder may be
subject to a U.S. withholding tax at a rate of 30% (or at a lower rate under an
applicable income tax treaty) on dividend income received by him or her.

Shareholders should consult their tax advisers about the application of the
provisions of tax law described in this statement of additional information in
light of their particular tax situations.

American High-Income Trust -- Page 22

<PAGE>

PURCHASE OF SHARES

<TABLE>
<CAPTION>
METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
- -------------------------------------------------------------------------------
<S> <C> <C>
See "Investment $50 minimum (except where a
Minimums and Fund lower minimum is noted under
Numbers "for initial "Investment Minimums and Fund
investment minimums. Numbers").
- -------------------------------------------------------------------------------
By contacting Visit any investment Mail directly to your
your investment dealer dealer who is investment dealer's address
registered in the printed on your account
state where the statement.
purchase is made and
who has a sales
agreement with
American Funds
Distributors.
- -------------------------------------------------------------------------------
By mail Make your check Fill out the account additions
payable to the fund form at the bottom of a recent
and mail to the account statement, make your
address indicated on check payable to the fund,
the account write your account number on
application. Please your check, and mail the check
indicate an investment and form in the envelope
dealer on the account provided with your account
application. statement.
- -------------------------------------------------------------------------------
By telephone Please contact your Complete the "Investments by
investment dealer to Phone" section on the account
open account, then application or American
follow the procedures FundsLink Authorization Form.
for additional Once you establish the
investments. privilege, you, your financial
advisor or any person with your
account information can call
American FundsLine(R) and make
investments by telephone
(subject to conditions noted in
"Shareholder Account Services
and Privileges - Telephone and
Computer Purchases, Redemptions
and Exchanges" below).
- -------------------------------------------------------------------------------
By computer Please contact your Complete the American FundsLink
investment dealer to Authorization Form. Once you
open account, then established the privilege, you,
follow the procedures your financial advisor or any
for additional person with your account
investments. information may access American
FundsLine OnLine(R) on the
Internet and make investments
by computer (subject to
conditions noted in
"Shareholder Account Services
and Privileges - Telephone and
Computer Purchases, Redemptions
and Exchanges" below).
- -------------------------------------------------------------------------------
By wire Call800/421-0180 to Your bank should wire your
obtain your account additional investments in the
number(s), if same manner as described under
necessary. Please "Initial Investment."
indicate an investment
dealer on the account.
Instruct your bank to
wire funds to:

Wells Fargo Bank
155 Fifth Street,
Sixth Floor
San Francisco, CA
94106
(ABA#121000248)

For credit to the
account of:
American Funds Service
Company a/c#
4600-076178
(fund name)
(your fund acct. no.)
- -------------------------------------------------------------------------------
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT ANY
PURCHASE ORDER.
- -------------------------------------------------------------------------------
</TABLE>

American High-Income Trust -- Page 23

<PAGE>

INVESTMENT MINIMUMS AND FUND NUMBERS - Here are the minimum initial investments
required by the funds in The American Funds Group along with fund numbers for
use with our automated phone line, American FundsLine/(R)/ (see description
below):

<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 02
American Balanced Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . 500 11
American Mutual Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . . 250 03
Capital Income Builder/(R)/ . . . . . . . . . . . . . . . . . . . . . . 1,000 12
Capital World Growth and Income Fund/SM/ . . . . . . . . . . . . . . . . 1,000 33
EuroPacific Growth Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . 250 16
Fundamental Investors/SM/ . . . . . . . . . . . . . . . . . . . . . . . 250 10
The Growth Fund of America/(R)/ . . . . . . . . . . . . . . . . . . . . 1,000 05
The Income Fund of America/(R)/ . . . . . . . . . . . . . . . . . . . . 1,000 06
The Investment Company of America/(R)/ . . . . . . . . . . . . . . . . . 250 04
The New Economy Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . . 1,000 14
New Perspective Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . . 250 07
New World Fund/SM/ . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 36
SMALLCAP World Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . . . 1,000 35
Washington Mutual Investors Fund/SM/ . . . . . . . . . . . . . . . . . . 250 01
BOND FUNDS
American High-Income Municipal Bond Fund/(R)/ . . . . . . . . . . . . . 1,000 40
American High-Income Trust/SM/ . . . . . . . . . . . . . . . . . . . . . 1,000 21
The Bond Fund of America/SM/ . . . . . . . . . . . . . . . . . . . . . . 1,000 08
Capital World Bond Fund/(R)/ . . . . . . . . . . . . . . . . . . . . . . 1,000 31
Intermediate Bond Fund of America/SM/ . . . . . . . . . . . . . . . . . 1,000 23
Limited Term Tax-Exempt Bond Fund of America/SM/ . . . . . . . . . . . . 1,000 43
The Tax-Exempt Bond Fund of America/(R)/ . . . . . . . . . . . . . . . . 1,000 19
The Tax-Exempt Fund of California/(R)/* . . . . . . . . . . . . . . . . 1,000 20
The Tax-Exempt Fund of Maryland/(R)/* . . . . . . . . . . . . . . . . . 1,000 24
The Tax-Exempt Fund of Virginia/(R)/* . . . . . . . . . . . . . . . . . 1,000 25
U.S. Government Securities Fund/SM/ . . . . . . . . . . . . . . . . . . 1,000 22
MONEY MARKET FUNDS
The Cash Management Trust of America/(R)/ . . . . . . . . . . . . . . . 2,500 09
The Tax-Exempt Money Fund of America/SM/ . . . . . . . . . . . . . . . . 2,500 39
The U.S. Treasury Money Fund of America/SM/ . . . . . . . . . . . . . . 2,500 49
___________
*Available only in certain states.
</TABLE>

For retirement plan investments, the minimum is $250, except that the money
market funds have a minimum of $1,000 for individual retirement accounts (IRAs).
Minimums are reduced to $50 for purchases through "Automatic Investment Plans"
(except for the money market funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived for shareholders of
other funds in The American Funds Group. TAX-EXEMPT FUNDS SHOULD NOT

American High-Income Trust -- Page 24

<PAGE>

SERVE AS RETIREMENT PLAN INVESTMENTS. The minimum is $50 for additional
investments (except as noted above).

SALES CHARGES -- The sales charges you pay when purchasing the stock,
stock/bond, and bond funds of The American Funds Group are set forth below. The
money market funds of The American Funds Group are offered at net asset value.
(See "Investment Minimums and Fund Numbers" for a listing of the funds.)

<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE
AT THE OFFERING PRICE NET AMOUNT OFFERING OFFERING
-INVESTED- PRICE PRICE
- ------------------------------------------ -------- ----- -----
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000 . . . . . . . . . . . 6.10% 5.75% 5.00%
$50,000 but less than $100,000. . 4.71 4.50 3.75
BOND FUNDS
Less than $25,000 . . . . . . . . 4.99 4.75 4.00
$25,000 but less than $50,000 . . 4.71 4.50 3.75
$50,000 but less than $100,000 . . 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000 . 3.63 3.50 2.75
$250,000 but less than $500,000 . 2.56 2.50 2.00
$500,000 but less than $1,000,000 2.04 2.00 1.60
</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
$1,000,000 or more . . . . . . . . . . none none (see below)
- ------------------------------------------------------------------------------
</TABLE>

PURCHASES NOT SUBJECT TO SALES CHARGES - Investments of $1 million or more are
sold with no initial sales charge. HOWEVER, A 1% CONTINGENT DEFERRED SALES
CHARGE MAY BE IMPOSED IF REDEMPTIONS ARE MADE WITHIN ONE YEAR OF PURCHASE.
Employer-sponsored defined contribution-type plans investing $1 million or more,
or with 100 or more eligible employees, may invest with no sales charge and are
not subject to a contingent deferred sales charge. Investments made by
retirement plans, endowments or foundations with $50 million or more in assets
may also be made with no sales charge and are not subject to a contingent
deferred sales charge. A dealer concession of up to 1% may be paid by the fund
under its Plan of Distribution on investments made with no initial sales charge.

In addition, the stock, stock/bond and bond funds may sell shares at net asset
value to:

(1) current or retired directors, trustees, officers and advisory board members
of the funds managed by Capital Research and Management Company, employees of
Washington Man-

American High-Income Trust -- Page 25

<PAGE>

agement Corporation, employees and partners of The Capital Group Companies, Inc.
and its affiliated companies, certain family members of the above persons, and
trusts or plans primarily for such persons;

(2) current registered representatives, retired registered representatives with
respect to accounts established while active, or full-time employees (and their
spouses, parents, and children) of dealers who have sales agreements with the
Principal Underwriter (or who clear transactions through such dealers) and plans
for such persons or the dealers;

(3) companies exchanging securities with the fund through a merger, acquisition
or exchange offer;

(4) trustees or other fiduciaries purchasing shares for certain retirement
plans of organizations with retirement plan assets of $50 million or more;

(5) insurance company separate accounts;

(6) accounts managed by subsidiaries of The Capital Group Companies, Inc.; and

(7) The Capital Group Companies, Inc., its affiliated companies and Washington
Management Corporation. Shares are offered at net asset value to these persons
and organizations due to anticipated economies in sales effort and expense.

DEALER COMMISSIONS - Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 100 or more eligible employees, and for purchases made at net
asset value by certain retirement plans of organizations with collective
retirement plan assets of $50 million or more: 1.00% on amounts of $1 million to
$4 million, 0.50% on amounts over $4 million to $10 million, and 0.25% on
amounts over $10 million.

OTHER COMPENSATION TO DEALERS - The Principal Underwriter, at its expense (from
a designated percentage of its income), currently provides additional
compensation to dealers. Currently these payments are limited to the top 100
dealers who have sold shares of the fund or other funds in The American Funds
Group. These payments will be based principally on a pro rata share of a
qualifying dealer's sales. The Principal Underwriter will, on an annual basis,
determine the advisability of continuing these payments.

Qualified dealers currently are paid a continuing service fee not to exceed
0.25% of average net assets (0.15% in the case of the money market funds)
annually in order to promote selling efforts and to compensate them for
providing certain services. These services include processing purchase and
redemption transactions, establishing shareholder accounts and providing certain
information and assistance with respect to the fund.

REDUCING YOUR SALES CHARGE - You and your "immediate family" (your spouse and
your children under age 21) may combine investments to reduce your costs. You
must let your investment dealer or American Funds Service Company (the "Transfer
Agent") know if you qualify for a reduction in your sales charge using one or
any combination of the methods described below.

American High-Income Trust -- Page 26

<PAGE>

STATEMENT OF INTENTION - You may enter into a non-binding commitment to
purchase shares of a fund(s) over a over a 13-month period and receive the
same sales charge as if all shares had been purchased at once. This
includes purchases made during the previous 90 days, but does not include
appreciation of your investment or reinvested distributions. The reduced
sales charges and offering prices set forth in the Prospectus apply to
purchases of $50,000 or more made within a 13-month period subject to the
following statement of intention (the "Statement"). The Statement is not a
binding obligation to purchase the indicated amount. When a shareholder
elects to utilize a Statement in order to qualify for a reduced sales
charge, shares equal to 5% of the dollar amount specified in the Statement
will be held in escrow in the shareholder's account out of the initial
purchase (or subsequent purchases, if necessary) by the Transfer Agent. All
dividends and any capital gain distributions on shares held in escrow will
be credited to the shareholder's account in shares (or paid in cash, if
requested). If the intended investment is not completed within the
specified 13-month period, the purchaser will remit to the Principal
Underwriter the difference between the sales charge actually paid and the
sales charge which would have been paid if the total of such purchases had
been made at a single time. If the difference is not paid by the close of
the period, the appropriate number of shares held in escrow will be
redeemed to pay such difference. If the proceeds from this redemption are
inadequate, the purchaser will be liable to the Principal Underwriter for
the balance still outstanding. The Statement may be revised upward at any
time during the 13-month period, and such a revision will be treated as a
new Statement, except that the 13-month period during which the purchase
must be made will remain unchanged. Existing holdings eligible for rights
of accumulation (see the account application) and any individual
investments in American Legacy variable annuities or variable life
insurance policies (American Legacy, American Legacy II, American Legacy
III, and American Legacy Shareholder's Advantage variable annuities,
American Legacy Life, American Legacy Variable Life, and American Legacy
Estate Builder) may be credited toward satisfying the Statement. During the
Statement period reinvested dividends and capital gain distributions,
investments in money market funds, and investments made under a right of
reinstatement will not be credited toward satisfying the Statement.

When the trustees of certain retirement plans purchase shares by payroll
deduction, the sales charge for the investments made during the 13-month
period will be handled as follows: The regular monthly payroll deduction
investment will be multiplied by 13 and then multiplied by 1.5. The current
value of existing American Funds investments (other than money market fund
investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period, and
any individual investments in American Legacy variable annuities or
variable life insurance policies are added to the figure determined above.
The sum is the Statement amount and applicable breakpoint level. On the
first investment and all other investments made pursuant to the Statement,
a sales charge will be assessed according to the sales charge breakpoint
thus determined.

Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms with their first purchase.

AGGREGATION - Sales charge discounts are available for certain aggregated
investments. Qualifying investments include those by you, your spouse and
your children under the age of 21, if all parties are purchasing shares for
their own accounts and/or:

American High-Income Trust -- Page 27

<PAGE>

- employee benefit plan(s), such as an IRA, individual-type 403(b) plan,
or single-participant Keogh-type plan;

- business accounts solely controlled by these individuals (for example,
the individuals own the entire business);

- trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may
be aggregated with accounts of the person who is the primary
beneficiary of the trust.

Individual purchases by a trustee(s) or other fiduciary(ies) may also be
aggregated if the investments are:

- for a single trust estate or fiduciary account, including an employee
benefit plan other than those described above;

- made for two or more employee benefit plans of a single employer or of
affiliated employers as defined in the 1940 Act, again excluding
employee benefit plans described above; or

- for a diversified common trust fund or other diversified pooled
account not specifically formed for the purpose of accumulating fund
shares.

Purchases made for nominee or street name accounts (securities held in the
name of an investment dealer or another nominee such as a bank trust
department instead of the customer) may not be aggregated with those made
for other accounts and may not be aggregated with other nominee or street
name accounts unless otherwise qualified as described above.

CONCURRENT PURCHASES - You may combine purchases of two or more funds in
The American Funds Group, as well as individual holdings in various
American Legacy variable annuities and variable life insurance policies.
Direct purchases of the money market funds are excluded. Shares of money
market funds purchased through an exchange, reinvestment or
cross-reinvestment from a fund having a sales charge do qualify.

RIGHTS OF ACCUMULATION - You may take into account the current value of
your existing holdings in The American Funds Group, as well as your
holdings in Endowments (shares of which may be owned only by tax-exempt
organizations), to determine your sales charge on investments in accounts
eligible to be aggregated, or when making a gift to an individual or
charity. When determining your sales charge, you may also take into account
the value of your individual holdings, as of the end of the week prior to
your investment, in various American Legacy variable annuities and variable
life insurance policies. Direct purchases of the money market funds are
excluded.

PRICE OF SHARES - Shares are purchased at the offering price next determined
after the purchase order is received and accepted by the fund or the Transfer
Agent; this offering price is effective for orders received prior to the time of
determination of the net asset value and, in the case of orders placed with
dealers, accepted by the Principal Underwriter prior to its close of business.
In the case of orders sent directly to the fund or the Transfer Agent, an
investment dealer MUST be indicated. The dealer is responsible for promptly
transmitting purchase orders to the Principal Underwriter. Orders received by
the investment dealer, the Transfer Agent, or the fund after the

American High-Income Trust -- Page 28

<PAGE>

time of the determination of the net asset value will be entered at the next
calculated offering price. Prices which appear in the newspaper are not always
indicative of prices at which you will be purchasing and redeeming shares of the
fund, since such prices generally reflect the previous day's closing price
whereas purchases and redemptions are made at the next calculated price.

The price you pay for shares, the offering price, is based on the net asset
value per share which is calculated once daily at the close of trading
(currently 4:00 p.m., New York time) each day the New York Stock Exchange is
open. For example, if the Exchange closes at 1:00 p.m. on one day and at 4:00
p.m. on the next, the fund's share price would be determined as of 4:00 p.m. New
York time on both days. The New York Stock Exchange is currently closed on
weekends and on the following holidays: New Year's Day, Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas Day.

All portfolio securities of funds managed by Capital Research and Management
Company (other than money market funds) are valued, and the net asset value per
share is determined as follows:

1. 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.

Short-term securities maturing within 60 days are valued at amortized cost which
approximates market value.

Assets or liabilities initially expressed in terms of non-U.S. currencies are
translated prior to the next determination of the net asset value of the fund's
shares into U.S. dollars at the prevailing market rates.

Securities and assets for which representative market quotations are not readily
available are valued at fair value as determined in good faith under policies
approved by the fund's Board. The fair value of all other assets is added to the
value of securities to arrive at the total assets;

2. Liabilities, including accruals of taxes and other expense items, are
deducted from total assets; and

3. Net assets so obtained are then divided by the total number of shares
outstanding, and the result, rounded to the nearer cent, is the net asset value
per share

Any purchase order may be rejected by the Principal Underwriter or by the fund.
The Principal Underwriter will not knowingly sell shares of the fund directly or
indirectly to any person or entity, where, after the sale, such person or entity
would own beneficially directly or indirectly more than 4.5% of the outstanding
shares of the fund without the consent of a majority of the fund's Board of
Trustees.

American High-Income Trust -- Page 29

<PAGE>

SELLING SHARES

Shares are sold at the net asset value next determined after your request is
received in good order by the Transfer Agent. You may sell (redeem) shares in
your account in any of the following ways:

THROUGH YOUR DEALER (certain charges may apply)

- Shares held for you in your dealer's street name must be sold through
the dealer.

WRITING TO AMERICAN FUNDS SERVICE COMPANY

- Requests must be signed by the registered shareholder(s)

- A signature guarantee is required if the redemption is:

- Over $50,000;

Made payable to someone other than the registered shareholder(s); or

- Sent to an address other than the address of record, or an
address of record which has been changed within the last 10 days.

Your signature may be guaranteed by a domestic stock exchange or the National
Association of Securities Dealers, Inc., bank, savings association or credit
union that is an eligible guarantor institution.

- Additional documentation may be required for sales of shares
held in corporate, partnership or fiduciary accounts.

- You must include any shares you wish to sell that are in
certificate form.

TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE/(R)/ OR AMERICAN FUNDSLINE ONLINE/(R)/

- Redemptions by telephone or fax (including American FundsLine/(R)/
and American FundsLine OnLine/(R)/) are limited to $50,000 per
shareholder each day.

- Checks must be made payable to the registered shareholder(s).

- Checks must be mailed to an address of record that has been used
with the account for at least 10 days.

MONEY MARKET FUNDS

- You may have redemptions of $1,000 or more wired to your bank
by writing American Funds Service Company.

- You may establish check writing privileges (use the money
market funds application).

American High-Income Trust -- Page 30

<PAGE>

- If you request check writing privileges, you will be provided with
checks that you may use to draw against your account. These checks may
be made payable to anyone you designate and must be signed by the
authorized number or registered shareholders exactly as indicated on
your checking account signature card.

Redemption proceeds will not be mailed until sufficient time has passed to
provide reasonable assurance that checks or drafts (including certified or
cashier's checks) for shares purchased have cleared (which may take up to 15
calendar days from the purchase date). Except for delays relating to clearance
of checks for share purchases or in extraordinary circumstances (and as
permissible under the 1940 Act), sale proceeds will be paid on or before the
seventh day following receipt and acceptance of an order. Interest will not
accrue or be paid on amounts that represent uncashed distribution or redemption
checks.

You may reinvest proceeds from a redemption or a dividend or capital gain
distribution without a sales charge (any contingent deferred sales charge paid
will be credited to your account) in any fund in The American Funds Group within
90 days after the date of the redemption or distribution. Redemption proceeds of
shares representing direct purchases in the money market funds are excluded.
Proceeds will be reinvested at the next calculated net asset value after your
request is received and accepted by the Transfer Agent.

CONTINGENT DEFERRED SALES CHARGE - A contingent deferred sales charge of 1%
applies to certain redemptions from funds other than the money market funds made
within twelve months of purchase on investments of $1 million or more (other
than redemptions by employer-sponsored retirement plans). The charge is 1% of
the lesser of the value of the shares redeemed (exclusive of reinvested
dividends and capital gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be redeemed first for purposes
of calculating this charge. The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12 months of the initial
purchase); for distributions from 403(b) plans or IRAs due to death, disability
or attainment of age 591/2; for tax-free returns of excess contributions to
IRAs; and for redemptions through certain automatic withdrawals not exceeding
10% of the amount that would otherwise be subject to the charge.

SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES

AUTOMATIC INVESTMENT PLAN - An automatic investment plan enables you to make
monthly or quarterly investments into the American Funds through automatic
debits from your bank account. To set up a plan you must fill out an account
application and specify the amount you would like to invest ($50 minimum) and
the date on which you would like your investments to occur. The plan will begin
within 30 days after your account application is received. Your bank account
will be debited on the day or a few days before your investment is made,
depending on the bank's capabilities. The Transfer Agent will then invest your
money into the fund you specified on or around the date you specified. If your
bank account cannot be debited due to insufficient funds, a stop-payment or the
closing of the account, the plan may be terminated and the related investment
reversed. You may change the amount of the investment or discontinue the plan at
any time by writing to the Transfer Agent. Checks that remain uncashed earn no
interest.

AUTOMATIC REINVESTMENT - Dividends and capital gain distributions are reinvested
in additional shares at no sales charge unless you indicate otherwise on the
account application. You also

American High-Income Trust -- Page 31

<PAGE>

may elect to have dividends and/or capital gain distributions paid in cash by
informing the fund, the Transfer Agent or your investment dealer.

If you have elected to receive dividends and/or capital gain distributions in
cash, and the postal or other delivery service is unable to deliver checks to
your address of record, or you do not respond to mailings from American Funds
Service Company with regard to uncashed distribution checks, your distribution
option will automatically be converted to having all dividends and other
distributions reinvested in additional shares.

CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - You may cross-reinvest
dividends and capital gains ("distributions") into any other fund in The
American Funds Group at net asset value, subject to the following conditions:

(a) The aggregate value of your account(s) in the fund(s) paying distributions
equals or exceeds $5,000 (this is waived if the value of the account in the fund
receiving the distributions equals or exceeds that fund's minimum initial
investment requirement),

(b) If the value of the account of the fund receiving distributions is below
the minimum initial investment requirement, distributions must be automatically
reinvested,

(c) If you discontinue the cross-reinvestment of distributions, the value of
the account of the fund receiving distributions must equal or exceed the minimum
initial investment requirement. If you do not meet this requirement within 90
days of notification, the fund has the right to automatically redeem the
account.

EXCHANGE PRIVILEGE - You may exchange shares into other funds in The American
Funds Group. Exchange purchases are subject to the minimum investment
requirements of the fund purchased and no sales charge generally applies.
However, exchanges of shares from the money market funds are subject to
applicable sales charges on the fund being purchased, unless the money market
fund shares were acquired by an exchange from a fund having a sales charge, or
by reinvestment or cross-reinvestment of dividends or capital gain
distributions.

You may exchange shares by writing to the Transfer Agent (see "Redeeming
Shares"), by contacting your investment dealer, by using American FundsLine and
American FundsLine OnLine (see "American FundsLine and American FundsLine
OnLine" below), or by telephoning 800/421-0180 toll-free, faxing (see "Principal
Underwriter and Transfer Agent" in the prospectus for the appropriate fax
numbers) or telegraphing the Transfer Agent. (See "Telephone and Computer
Purchases, Redemptions and Exchanges" below.) Shares held in corporate-type
retirement plans for which Capital Guardian Trust Company serves as trustee may
not be exchanged by telephone, computer, fax or telegraph. Exchange redemptions
and purchases are processed simultaneously at the share prices next determined
after the exchange order is received. (See "Purchase of Shares--Price of
Shares.") THESE TRANSACTIONS HAVE THE SAME TAX CONSEQUENCES AS ORDINARY SALES
AND PURCHASES.

AUTOMATIC EXCHANGES - You may automatically exchange shares in amounts of $50 or
more among any of the funds in The American Funds Group on any day (or preceding
business day if the day falls on a non-business day of each month you designate.
You must either (a) meet the minimum initial investment requirement for the
receiving fund OR (b) the originating fund's balance must be at least $5,000 and
the receiving fund's minimum must be met within one year.

American High-Income Trust -- Page 32

<PAGE>

AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.

ACCOUNT STATEMENTS - Your account is opened in accordance with your registration
instructions. Transactions in the account, such as additional investments will
be reflected on regular confirmation statements from the Transfer Agent.
Dividend and capital gain reinvestments and purchases through automatic
investment plans and certain retirement plans will be confirmed at least
quarterly.

AMERICAN FUNDSLINE AND AMERICAN FUNDSLINE ONLINE - You may check your share
balance, the price of your shares, or your most recent account transaction,
redeem shares (up to $50,000 per shareholder each day), or exchange shares
around the clock with American FundsLine and American FundsLine OnLine. To use
these services, call 800/325-3590 from a TouchTone(TM) telephone or access the
American Funds Web site on the Internet at www.americanfunds.com. Redemptions
and exchanges through American FundsLine and American FundsLine OnLine are
subject to the conditions noted above and in "Shareholder Account Services and
Privileges - Telephone and Computer Purchases, Redemptions and Exchanges" below.
You will need your fund number (see the list of funds in The American Funds
Group under "Purchase of Shares - Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of your Social Security
number or other tax identification number associated with your account) and
account number.

TELEPHONE AND COMPUTER PURCHASES, REDEMPTIONS AND EXCHANGES - By using the
telephone (including American FundsLine) or computer (including American
FundsLine OnLine), fax or telegraph purchase, redemption and/or exchange
options, you agree to hold the fund, the Transfer Agent, any of its affiliates
or mutual funds managed by such affiliates, and each of their respective
directors, trustees, officers, employees and agents harmless from any losses,
expenses, costs or liability (including attorney fees) which may be incurred in
connection with the exercise of these privileges. Generally, all shareholders
are automatically eligible to use these options. However, you may elect to opt
out of these options by writing the Transfer Agent (you may also reinstate them
at any time by writing the Transfer Agent). If the Transfer Agent does not
employ reasonable procedures to confirm that the instructions received from any
person with appropriate account information are genuine, the fund may be liable
for losses due to unauthorized or fraudulent instructions. In the event that
shareholders are unable to reach the fund by telephone because of technical
difficulties, market conditions, or a natural disaster, redemption and exchange
requests may be made in writing only.

REDEMPTION OF SHARES - The fund's declaration of trust permits the fund to
direct the Transfer Agent to redeem the shares of any shareholder for their then
current net asset value per share if at such time the shareholder owns of record
shares having an aggregate net asset value of less than the minimum initial
investment amount required of new shareholders as set forth in the fund's
current registration statement under the 1940 Act, and subject to such further
terms and conditions as the Board of Trustees of the fund may from time to time
adopt.

American High-Income Trust -- Page 33

<PAGE>

SHARE CERTIFICATES - Shares are credited to your account and certificates are
not issued unless you request them by writing to the Transfer Agent.

EXECUTION OF PORTFOLIO TRANSACTIONS

The Investment Adviser places orders for the fund's portfolio securities
transactions. The Investment Adviser strives to obtain the best available prices
in its portfolio transactions taking into account the costs and quality of
executions. When, in the opinion of the Investment Adviser, two or more brokers
(either directly or through their correspondent clearing agents) are in a
position to obtain the best price and execution, preference may be given to
brokers who have sold shares of the fund or who have provided investment
research, statistical, or other related services to the Investment Adviser. The
fund does not consider that it has an obligation to obtain the lowest available
commission rate to the exclusion of price, service and qualitative
considerations.

There are occasions on which portfolio transactions for the fund may be executed
as part of concurrent authorizations to purchase or sell the same security for
other funds served by the Investment Adviser, or for trusts or other accounts
served by affiliated companies of the Investment Adviser. Although such
concurrent authorizations potentially could be either advantageous or
disadvantageous to the fund, they are effected only when the Investment Adviser
believes that to do so is in the interest of the fund. When such concurrent
authorizations occur, the objective is to allocate the executions in an
equitable manner. The fund will not pay a mark-up for research in principal
transactions.

Dealer concessions paid on underwriting transactions for the fiscal years ended
September 30, 1999, 1998 and 1997, amounted to $9,489,000, $9,619,000 and
$19,318,000, respectively.

The fund is required to disclose information regarding investments in the
securities of broker-dealers (or parents of broker-dealers that derive more than
15% of their revenue from broker-dealer activities) which have certain
relationships with the fund. During the last fiscal year, General Electric
Capital Corp. was among the top 10 dealers that received the largest amount of
brokerage commissions and that acted as principals in portfolio transactions.
The fund held debt securities of General Electric Capital Corp. in the amount of
$32,164,000 as of the close of its most recent fiscal year.

GENERAL INFORMATION

CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by The Chase Manhattan Bank, One Chase Manhattan Plaza, New York, NY
10081, as Custodian. If the fund holds non-U.S. securities, the Custodian may
hold these securities pursuant to sub-custodial arrangements in non-U.S. banks
or foreign branches of U.S. banks.

TRANSFER AGENT - American Funds Service Company, a wholly owned subsidiary of
the Investment Adviser, maintains the records of each shareholder's account,
processes purchases and redemptions of the fund's shares, acts as dividend and
capital gain distribution disbursing agent, and performs other related
shareholder service functions. American Funds Service Company was paid a fee of
$1,803,000 for the fiscal year ended September 30, 1999.

American High-Income Trust -- Page 34

<PAGE>

INDEPENDENT AUDITORS - Deloitte & Touche LLP, 1000 Wilshire Boulevard, 15th
Floor, Los Angeles, CA 90017, serves as the funds' independent auditors
providing audit services, preparation of tax returns and review of certain
documents to be filed with the Securities and Exchange Commission. The financial
statements included in this Statement of Additional Information from the Annual
Report have been so included in reliance on the report Deloitte & Touche LLP,
independent auditors, given on the authority of said firm as experts in
accounting and auditing. The selection of the funds' independent auditors is
reviewed and determined annually by the Board of Trustees.

REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on September 30.
Shareholders are provided at least semiannually with reports showing the
investment portfolio, financial statements and other information. The fund's
annual financial statements are audited by the fund's independent auditors,
Deloitte & Touche LLP. In an effort to reduce the volume of mail shareholders
receive from the fund when a household owns more than one account, the Transfer
Agent has taken steps to eliminate duplicate mailings of shareholder reports. To
receive additional copies of a report, shareholders should contact the Transfer
Agent.

YEAR 2000 - The fund and its shareholders depend on the proper functioning of
computer systems maintained by the Investment Adviser and its affiliates and
other key service providers. The fund understands that these service providers
have updated all of their computer systems to process date-related information
properly following the turn of the century. However, there can be no assurance
that these steps are sufficient to avoid any adverse impact on the fund. In
addition, the fund's investments could be adversely affected by the Year 2000
problem. For example, the markets for securities in which the fund invests could
experience settlement problems and liquidity issues. Corporate and governmental
data processing errors may cause losses for individual companies and overall
economic uncertainties. Earnings of individual issuers are likely to be affected
by the costs of addressing the problem, which may be substantial and may be
reported inconsistently.

PERSONAL INVESTING POLICY - The fund, Capital Research and Management Company
and its affiliated companies, including the fund's principal underwriter, have
adopted codes of ethics which allow for personal investments. The personal
investing policy is consistent with Investment Company Institute guidelines.
This policy includes: a ban on acquisitions of securities pursuant to an initial
public offering; restrictions on acquisitions of private placement securities;
pre-clearance and reporting requirements; review of duplicate confirmation
statements; annual recertification of compliance with codes of ethics; blackout
periods on personal investing for certain investment personnel; ban on
short-term trading profits for investment personnel; limitations on service as a
director of publicly traded companies; and disclosure of personal securities
transactions.

OTHER INFORMATION - The financial statements including the investment portfolio
and the report of Independent Auditors contained in the Annual Report are
included in this Statement of Additional Information. The following information
is not included in the Annual Report:

American High-Income Trust -- Page 35

<PAGE>

DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE -- SEPTEMBER 30, 1999

<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) . . . . . . . . . $13.52
Maximum offering price per share
(100/95.25 of net asset value per share,
which takes into account the fund's current maximum
sales charge). . . . . . . . . . . . . . . . . . . . . . . . $14.19
</TABLE>

INVESTMENT RESULTS AND RELATED STATISTICS

The fund's yield is 9.64% based on a 30-day (or one month) period ended
September 30, 1999, computed by dividing the net investment income per share
earned during the period by the maximum offering price per share on the last day
of the period, according to the following formula:

YIELD = 2[( a-b/cd + 1)/6/ -1]

Where: a = dividends and interest earned during the period.

b =
expenses accrued for the period (net of reimbursements).

c =
the average daily number of shares outstanding during the
period that were entitled to receive dividends.

d =
the maximum offering price per share on the last day of the
period.

The average total return ("T") is computed by equating the value at the end of
the period ("ERV") with a hypothetical initial investment of $1,000 ("P") over a
period of years ("n") according to the following formula as required by the
Securities and Exchange Commission: P(1+T)/n/ = ERV.

The fund's one year total return and average annual total return for the five-
and ten-year periods ended September 30, 1999 were 2.94%, 8.22% and 9.73%,
respectively. The fund's average annual total return at net asset value for the
one-, five- and ten-year periods ended on September 30, 1999 were 8.11%, 9.28%
and 10.26, respectively.

In calculating average annual total return, the fund assumes: (1) deduction of
the maximum sales load of 4.75% from the $1,000 initial investment; (2)
reinvestment of dividends and distributions at net asset value on the
reinvestment date determined by the Board; and (3) a complete redemption at the
end of any period illustrated. In addition, the fund will provide lifetime
average total return figures.

The fund may also, at times, calculate total return based on net asset value per
share (rather than the offering price), in which case the figure would not
reflect the effect of any sales charges which would have been paid if shares
were purchased during the period reflected in the computation. Consequently,
total return calculated in this manner will be higher. These total returns may
be calculated over periods in addition to those described above. Total return
for the unmanaged indices will be calculated assuming reinvestment of dividends
and interest, but will not reflect any deductions for advisory fees, brokerage
costs or administrative expenses.

American High-Income Trust -- Page 36

<PAGE>

The fund may include information on its investment results and/or comparisons of
its investment results to various unmanaged indices (such as the Dow Jones
Average of 30 Industrial Stocks and the Standard and Poor's 500 Composite Stock
Index) or results of other mutual funds or investment or savings vehicles in
advertisements or in reports furnished to present or prospective shareholders.
The fund may also, from time to time, combine its results with those of other
funds in The American Funds Group for purposes of illustrating investment
strategies involving multiple funds.

The fund may refer to results and surveys compiled by organizations such as CDA/
Wiesenberger, Ibbotson Associates, Lipper Analytical Services, Morningstar,
Inc., and by the U.S. Department of Commerce. Additionally, the fund may refer
to results published in various newspapers and periodicals, including Barron's,
Forbes, Fortune, Institutional Investor, Kiplinger's Personal Finance Magazine,
Money, U.S. News and World Report and The Wall Street Journal.

The fund may illustrate the benefits of tax-deferral by comparing taxable
investments to investments made through tax-deferred retirement plans.

The fund may compare its investment results with the Consumer Price Index, which
is a measure of the average change in prices over time in a fixed market basket
of goods and services (e.g. food, clothing, and fuels, transportation, and other
goods and services that people buy for day-to-day living).

EXPERIENCE OF INVESTMENT ADVISER - The Investment Adviser manages nine growth
and growth-income funds that are at least 10 years old. In the rolling 10-year
periods since January 1, 1969 (138 in all), those funds have had better total
returns than their comparable Lipper indexes in 128 of 138 periods.

Note that past results are not an indication of future investment results. Also,
the fund has different investment policies than the funds mentioned above. These
results are included solely for the purpose of informing investors about the
experience and history of Capital Research and Management Company.

(1) The Credit Suisse First Boston High Yield Index is an unmanaged, trader
priced portfolio constructed to mirror the high yield debt market (revisions to
the index are effected weekly). The Index has several modules representing
different sectors of the high yield market including a cash paying module, a
zerofix module, a pay-in-kind module, and a defaulted module. The Index is
divided into other categories including industry, rating, seniority, liquidity,
market value, security price range, yield range and other sector divisions.
There are a total of 250 sectors which are followed by the Index.

(2) Salomon Smith Barney High-Yield Index, which is a market value weighted
index of bonds having a minimum issue size of $100 million, a minimum maturity
of 10 years and that carry a minimum/maximum quality rating of C/BB+.

(3) Salomon Smith Barney Broad Investment-Grade Bond Index, which is a market
capitalization weighted index and includes Treasury, Government-sponsored
mortgage and investment-grade fixed-rate corporates (BBB/Baa3) with a maturity
of one year or longer and a minimum of $50 million outstanding at entry, and
remain in the Index until their amount falls below $25 million.

American High-Income Trust -- Page 37

<PAGE>

(4) Lipper's "High Current Yield" funds average, which is the arithmetic
average of Total Return of a number of mutual funds with investment objectives
and policies similar to those of the Fund, as published by Lipper Analytical
Services. The number of funds contained in the data base varies as funds are
added or deleted over time.

(5) Average of Savings Accounts, which is a measure of all kinds of savings
deposits, including longer-term certificates (based on figures supplied by the
U.S. League of Savings Institutions). Savings accounts offer a guaranteed rate
of return on principal, but no opportunity for capital growth. The period shown
may include periods during which the maximum rates paid on some savings deposits
were fixed by law.

The Consumer Price Index, which is a measure of the average change in prices
over time in a fixed market basket of goods and services (e.g. food, clothing,
shelter, and fuels, transportation fares, charges for doctors' and dentists'
services, prescription medicines, and other goods and services that people buy
for day-to-day living).

American High-Income Trust -- Page 38

<PAGE>

IF YOU ARE CONSIDERING AHIT FOR AN
INDIVIDUAL RETIREMENT ACCOUNT HERE ARE THE BENEFITS OF SYSTEMATIC INVESTING:
<TABLE>
<CAPTION>

Here's how much you would have if you
invested $2,000 a year in the fund:

1 year 3 years Lifetime
(10/1/98-9/30/99) (10/1/96-9/30/99) 2/19/88-9/30/99)
<S> <C> <C>
$2,059 $6,374 $44,317
- -----------------------------------------------------------------------------
</TABLE>

SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM
<TABLE>
<CAPTION>
... and taken all distributions
If you had invested in shares your investment
$10,000 in the Fund would have been worth this
this many years ago... much at September 30, 1999

Periods
Number of Years 10/1-9/30 Value**
<S> <C> <C>
1
1998 - 1999 $10,295
2
1997 - 1999 10,052
3
1996 - 1999 11,525
4
1995 - 1999 13,103
5
1994 - 1999 14,844
6
1993 - 1999 15,083
7
1992 - 1999 17,284
8
1991 - 1999 20,407
9
1990 - 1999 26,356
10
1989 - 1999 25,304
11
1988 - 1999 27,799
Lifetime 1988* - 1999 29,409
</TABLE>

American High-Income Trust -- Page 39

<PAGE>

* From February 19, 1988
** Value assumed deduction of the maximum 4.75% sales charge from the initial
purchase payment.

American High-Income Trust -- Page 40

<PAGE>

Illustration of a $10,000 investment in AHIT
with dividends reinvested(For the lifetime of the fund February 19, 1999 -
September 30, 1999)

<TABLE>
<CAPTION>
COST OF SHARES VALUE OF SHARES**
------------- --------------
Fiscal Total From From From
Year End Annual Dividends Investment Initial Capital Gains Dividends Total
9/30 Dividends (cumulative) Cost Investment Reinvested Reinvested Value
---- --------- ------------ ---- ---------- ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1988* $ 640 $ 640 $10,640 $ 9,433 --- $ 641 $10,074
1989 1,188 1,828 11,828 9,273 --- 1,800 11,073
1990 1,334 3,162 13,162 7,873 --- 2,755 10,628
1991 1,411 4,573 14,573 9,040 --- 4,683 13,723
1992 1,404 5,977 15,977 9,720 --- 6,484 16,204
1993 1,503 7,480 17,480 10,120 155 8,293 18,568
1994 1,555 9,035 19,035 9,313 438 9,115 18,866
1995 1,879 10,914 20,914 9,533 561 11,288 21,382
1996 2,046 12,960 22,960 9,907 583 13,818 24,308
1997 2,108 15,068 25,068 10,460 641 16,771 27,872
1998 2,448 17,516 27,516 9,167 1,111 16,924 27,202
1999 2,669 20,185 30,185 9,013 1,179 19,217 29,409
</TABLE>

The dollar amount of capital gain distributions during the period was $1,292.

* From inception on February 19, 1988.
** Results assume deduction of the maximum sales charge of 4.75% from the
initial purchase payment.

American High-Income Trust -- Page 41

<PAGE>

APPENDIX
Description of Commercial Paper Ratings

MOODY'S employs the designations "Prime-1," "Prime-2" and "Prime-3" to indicate
- -------
commercial paper having the highest capacity for timely repayment. Issuers rated
Prime-1 have a superior capacity for repayment of short-term promissory
obligations. Prime-1 repayment capacity will normally be evidenced by the
following characteristics: leading market positions in well-established
industries; high rates of return on funds employed; conservative capitalization
structures with moderate reliance on debt and ample asset protection; broad
margins in earnings coverage of fixed financial charges and high internal cash
generation; and well-established access to a range of financial markets and
assured sources of alternate liquidity.

Issues rated Prime-2 have a strong capacity for repayment of short-term
promissory obligations. This will normally be evidenced by many of the
characteristics cited above, but to a lesser degree. Earnings trends and
coverage ratios, while sound, will be more subject to variation. Capitalization
characteristics, while still appropriate, may be more affected by external
conditions. Ample alternate liquidity is maintained.

S&P ratings of commercial paper are graded into four categories ranging from "A"
- ---
for the highest quality obligations to "D" for the lowest.

A -- Issues assigned its highest rating are regarded as having the greatest
capacity for timely payment. Issues in this category are delineated with numbers
1, 2, and 3 to indicate the relative degree of safety.

A-1 -- This designation indicates that the degree of safety regarding timely
payment is either overwhelming or very strong. Those issues determined to
possess overwhelming safety characteristics will be denoted with a plus (+) sign
designation.

A-2 -- Capacity for timely payments on issues with this designation is strong;
however, the relative degree of safety is not as high as for issues designated
"A-1."

American High-Income Trust -- Page 42

<TABLE>
[begin pie chart]
American High-Income Trust
Piechart Breakdown
September 30, 1999
<S> <C>
U.S. Corporate Bonds 67%
Non-U.S. Corporate Bonds 20%
Non-U.S. Government Bonds 2%
Stocks 4%
U.S. Treasuries 1%
Cash & Equivalents 6%

[end pie chart]
</TABLE>

<TABLE>
<S> <C> <C>
American High-Income Trust
September 30, 1999
Ten Largest Holdings by Issuer

Nextel Communications 5.03 %
Omnipoint 4.55
NTL 2.52
Crown Castle International 1.85
COLT Telecom Group 1.85
Fox/Liberty Networks 1.79
Clearnet Communications 1.62
Viatel 1.61
Fuji JGB Investment 1.41
Dobson Communications 1.37

</TABLE>

<TABLE>
American High-Income Trust
Investment Portfolio, September 30, 1999
<S> <C> <C> <C> <C>
Shares
or Principal Market Percent
Amount Value of Net
Bonds, Notes & Equity Securities (000) (000) Assets
- -------------------------------------------- ------------ ---------- --------

Wireless Telecommunication Services - 19.67%
Nextel Communications, Inc.:
0%/9.75% 2007(1) $15,250 $10,789
0%/10.65% 2007(1) 21,500 15,856
0%/9.95% 2008(1) 43,625 30,428
12.00% 2008 7,500 8,400
Series D, 13.00% exchangeable preferred, 16share 17,173
redeemable 2009 (2),(3)
Series E, 11.25% exchangeable preferred, 32share 31,482
redeemable 2010(2),(3)
Nextel International, Inc. 0%/12.125% 2008(1) $29,250 14,698 5.03%
McCaw International, Ltd. (owned by Nextel 18,125 10,875
Communications, Inc.) 0%/13.00% 2007(1)
Omnipoint Corp.:
12.00% 2000(4),(5) 12,500 12,500
14.00% 2003(2),(4),(5) 31,496 32,756
11.625% 2006 27,000 27,810
11.625% Series A, 2006 9,000 9,270
11.50% 2009(4) 7,000 7,228
7.00% convertible preferred 185share 18,407 3.89
Crown Castle International Corp.:
0%/10.625% 2007(1) $19,000 13,442
0%/10.375% 2011(1) 21,500 12,416
0%/11.25% 2011(1),(4) 14,000 8,050
12.75% senior exchangeable preferred 2010(2),(3) 17share 17,477 1.85
Clearnet Communications Inc.:
0%/11.75% 2007(1) C$52,375 24,268
0%/10.40% 2008(1) 50,325 20,746 1.62
Dobson Communications Corp.:
11.75% 2007 $13,325 14,058
12.25% exchangeable preferred, redeemable 2008(2),(3) 16share 13,825
12.25% senior exchangeable preferred, redeemable 12share 10,293 1.37
2008(2),(3),(4)
American Cellular Corp. 10.50% 2008 $31,125 31,981 1.15
Esat Telecom Group PLC:
0%/12.50% 2007(1) 20,250 14,479
11.875% 2008 12,000 12,330 .97
PageMart Wireless, Inc.:
0%/15.00% 2005(1) 12,750 10,965
0%/11.25% 2008(1) 51,760 15,528 .95
Centennial Cellular Corp. 10.75% 2008 21,250 22,100 .80
SpectraSite Holdings, Inc.:
0%/12.00% 2008(1),(4) 8,500 4,675
0%/11.25% 2009(1),(4) 25,875 12,938 .63
Mobile Telecommunication Technologies Corp. 13.50% 2002 7,755 8,705
SkyTel Communications, Inc. $2.25 convertible preferred 100share 3,875 .45
Comunicacion Celular SA 0%/14.125% 2005(1),(4) 16,000 8,520 .31
CellNet Data Systems, Inc. 0%/14.00% 2007(1) 15,770 5,677 .20
Western Wireless Corp. 10.50% 2006 3,000 3,158 .11
Occidente y Caribe Celular SA 0%/14.00% 2004(1) 5,000 2,863 .10
Teletrac Inc. senior note 10.00% 2000 385 385
Teletrac Holdings, Inc. 14.00% 2007 (5) 13,550 1,355 .06
GLOBE TELECOM, Inc. 13.00% 2009(4) 1,650 1,724 .06
Cellco Finance NV:
15.00% 2005(4) 1,215 1,267
15.00% 2005 375 391 .06
Netia Holdings BV 0%/11.25% 2007(1) 1,000 630 .03
Conecel Holdings Ltd., Series A, 14.00% 2000(4),(5),(6) 5,500 550 .03
--------------------
546,34 19.67
Diversified Media & Cable Television - 10.16%
Comcast UK Cable Partners Ltd.(owned by NTL Inc.) 32,000 28,960
0%/11.20% 2007(1)
NTL Inc.:
0%/12.75% 2005(1) 1,000 968
Series B, 10.00% 2007 5,750 5,865
0%/9.75% 2008(1) 12,500 8,250
0%/10.75% 2008(1) pounds17,750 18,993
11.50% 2008 $6,000 6,420 2.50
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
8.875% 2007 22,875 23,218
0%/9.75% 2007(1) 34,000 26,520 1.79
Charter Communications Holdings, LLC:
8.25% 2007(4) 6,000 5,565
0%/9.92% 2011(1),(4) 49,000 28,910 1.24
Adelphia Communications Corp.:
9.25% 2002 6,000 6,030
10.50% 2004 8,500 8,776
Series B, 13.00% preferred 2009(3) 20share 2,200 .61
Lenfest Communications, Inc.:
8.375% 2005 $6,000 6,180
7.625% 2008 6,750 6,722
8.25% 2008 3,250 3,299 .58
Century Communications Corp.:
0% 2003 1,500 1,054
8.75% 2007 4,000 3,830
0% 2008 19,750 8,295 .47
Telemundo Holdings, Inc., Series A, 0%/11.50% 22,700 12,939 .47
2008(1)
Globo Comunicacoes e Participacoes SA:
10.50% 2006(4) 10,280 7,756
10.625% 2008(4) 7,000 5,155 .46
Falcon Holding Group, LP, Falcon Funding Corp. 10,750 10,562 .38
8.375% 2010
Avalon Cable of Michigan LLC:
9.375% 2008 4,250 4,261
0%/11.875% 2008(1) 8,625 5,477 .35
TeleWest PLC 9.625% 2006 9,000 9,068 .33
Cablevision Industries Corp. 9.875% 2013 6,000 6,315 .23
Multicanal Participacoes SA, Series B, 12.625% 2004 4,900 4,790 .17
TVN Entertainment Corp. 14.00% 2008(4) 13,250 4,638 .17
V2 Music Holdings PLC:
0%/14.00% 2008(1),(4) 10,905 3,272
0%/14.00% 2008(1),(4) pounds2,250 1,111 .16
FrontierVision 11.00% 2006 $3,500 3,727 .13
Coaxial Communications of Central Ohio, Inc. 2,250 2,205 .08
10.00% 2006
Grupo Televisa, SA 0%/13.25% 2008(1) 1,000 842 .04
--------------------
282,173 10.16
--------------------

Diversified Telecommunication Services - 9.98%
Viatel, Inc.:
11.50% 2009 2,500 $2,400 1.38
11.15% 2008 DM5,000 2,576
11.25% 2008 $10,000 9,400
0%/12.40% 2008(1) DM22,500 6,991
0%/12.50% 2008(1) $29,500 17,110
COLT Telecom Group PLC:
0%/12.00% 2006(1) 26,250 21,459
8.875% 2007 DM20,250 11,342
7.625% 2008 9,250 4,891 1.36
NEXTLINK Communications, Inc.:
12.50% 2006 $1,750 1,851
9.625% 2007 13,000 12,448
9.00% 2008 9,500 8,835
0%/12.25% 2009(1) 19,750 11,455
14.00% preferred 2009(2),(3) 35share 1,810 1.31
Time Warner Telecom Inc. 9.75% 2008 $27,225 27,429 .99
US Xchange, LLC 15.00% 2008 21,875 21,438 .77
Global TeleSystems Group, Inc.:
8.75% convertible debentures 2000(4) 7,500 15,000
9.875% 2005 6,000 5,730 .75
Allegiance Telecom, Inc.:
0%/11.75% 2008(1) 22,000 14,300
12.875% 2008 2,625 2,848 .62
PTC International Finance BV 0%/10.75% 2007(1) 18,500 12,626 .45
KMC Telecom Holdings Inc. 0%/12.50% 2008(1) 22,500 11,700 .42
Loral Orion Network Systems, Inc. 11.25% 2007 15,425 10,798 .39
GST Equipment Funding, Inc. 13.25% 2007 9,000 9,090 .33
IXC Communications, Inc., exchangeable preferred, 6share 5,983 .22
redeemable 2009(2),(3)
VersaTel Telecom International NV 11.875% 2009 $5,000 5,051 .18
Qwest Communications International Inc. 0%/9.47% 2007(1) 6,000 4,756 .17
Level 3 Communications, Inc. 9.125% 2008 5,000 4,525 .16
IMPSAT Corp. 12.375% 2008 5,750 4,384 .16
Teligent, Inc. 11.50% 2007 $4,000 3,660 .13
Piltel International Holding Corp. 1.75% convertible 2006 5,875 3,290 .12
Telesystem International Wireless Inc. 0%/13.25% 2007(1) 3,600 1,755 .05
CEI Citicorp Holdings SA 11.25% 2007(4) ARP500 371 .01
--------------------
277,302 9.98
--------------------

--------------------

Leisure & Tourism - 8.28%
William Hill Finance 10.625% 2008 pounds22,200 36,911 1.33
Horseshoe Gaming Holding Corp. 8.625% 2009(4) $26,000 24,635 .89
Boyd Gaming Corp.:
9.25% 2003 15,250 15,250
9.50% 2007 7,860 7,624 .82
AMF Bowling Worldwide, Inc.:
10.875% 2006 19,750 14,417
0%/12.25% 2006(1) 11,293 6,550
0% convertible debentures 2018(4) 10,508 972 .79
Jupiters Ltd. 8.50% 2006(4) 19,180 18,509 .67
International Game Technology:
7.875% 2004 11,000 10,505
8.375% 2009 4,000 3,810 .52
Premier Parks Inc.:
9.25% 2006 4,000 3,760
9.75% 2007 10,000 9,500 .48
Harrah's Operating Co., Inc. 7.875% 2005 13,725 13,107 .47
Regal Cinemas, Inc.:
9.50% 2008 2,000 1,360
8.875% 2010 17,800 11,570 .47
Sun International Hotels Ltd.,
Sun International North America, Inc.:
8.625% 2007 3,750 3,488
9.00% 2007 9,000 8,550 .43
Carmike Cinemas, Inc., Series B, 9.375% 2009 11,500 10,580 .38
Florida Panthers Holdings, Inc. 9.875% 2009 11,000 10,230 .37
Friendly Ice Cream Corp. 10.50% 2007 7,375 6,674 .24
KSL Recreation Group, Inc. 10.25% 2007 6,250 6,125 .22
Loews Cineplex Entertainment Corp. 8.875% 2008 4,000 3,620 .13
Mirage Resorts, Inc. 6.625% 2005 2,000 1,843 .06
Six Flags Entertainment Corp. 8.875% 2006 500 470 .01
--------------------
230,060 8.28
--------------------

Broadcasting & Publishing - 6.16%
Chancellor Media Corp. of Los Angeles:
9.375% 2004 14,500 14,826
8.125% 2007 9,500 9,120
Series B, 8.75% 2007 6,450 6,385
8.00% 2008 2,000 1,940
9.00% 2008 1,000 1,010 1.20
American Media Operation 10.25% 2009 18,000 17,505 .63
Ziff-Davis Inc. 8.50% 2008 16,500 15,840 .57
TransWestern Publishing Co. LLC 9.625% 2007 16,050 15,528 .56
Sun Media Corp.:
9.50% 2007 11,078 11,161
9.50% 2007 3,947 3,977 .55
Gray Communications Systems, Inc. 10.625% 2006 12,120 12,544 .45
Antenna TV SA 9.00% 2007 12,450 11,516 .41
Big City Radio, Inc. 0%/11.25% 2005(1) 14,000 9,660 .35
ACME Intermediate Holdings, LLC, Series B, 12,689 8,882 .32
0%/12.00% 2005(1)
Muzak LLC 9.875% 2009(4) 3,000 2,895
Muzak Holdings LLC 0%/13.00% 2010(1),(4) 6,500 3,575 .23
Young Broadcasting Inc.:
10.125% 2005 3,500 3,596
Series B, 8.75% 2007 2,000 1,950 .20
Radio One, Inc. 7.00%/12.00% 2004(1) 4,750 4,976 .18
Cumulus Media Inc. 13.75% preferred 2009(2),(3) 4share 4,867 .18
RBS Participacoes SA 11.00% 2007(4) $4,500 3,251 .12
STC Broadcasting, Inc. 11.00% 2007 3,000 2,993 .11
Capstar Broadcasting Corp. 12.00% preferred 2009(2) 25share 2,966 .10
--------------------
170,96 6.16
--------------------

Manufacturing - 5.12%
Graham Packaging Co.:
8.75% 2008 $17,750 16,685
0%/10.75% 2009(1) 16,500 10,436 .98
Printpack, Inc.:
Series B, 9.875% 2004 5,750 5,563
10.625% 2006 18,930 17,747 .84
Federal-Mogul Corp.:
7.50% 2004 4,500 4,305
7.375% 2006 5,000 4,632
7.75% 2006 2,000 1,882
7.50% 2009 8,000 7,221 .65
Anchor Glass Container Corp. 11.25% 2005 13,250 13,117 .47
First Pacific Capital Ltd. 2% convertible 2002 12,000 11,760 .42
Hayes Wheels International, Inc. 9.125% 2007 2,500 2,337
Hayes Lemmerz International, Inc., Series B, 8.25% 2008 8,750 7,700 .36
Key Plastics Holdings, Inc. 10.25% 2007 9,650 7,913 .28
American Standard Inc.:
7.125% 2006 5,500 5,688
8.25% 2009(4) 1,750 1,689 .27
Ingram Micro Inc. 0% convertible debentures 2018 22,500 7,200 .26
Impress Metal Packaging Holdings BV 9.875% 2007 DM10,600 6,125 .22
Tekni-Plex, Inc. 9.25% 2008 $5,995 5,710 .21
Westinghouse Air Brake Co.:
9.375% 2005 1,500 1,485
Series B2, 9.375% 2005 1,500 1,485 .11
BREED Technologies, Inc. 9.25% 2008(6) 30,000 1,200 .04
Reliance Industries Ltd. 10.50% 2046(4) 500 416 .01
--------------------
142,29 5.12
--------------------

Banking & Financial Services - 4.99%
Fuji JGB Investment LLC, Series A, 9.87% 38,455 39,032 1.41
noncumulative preferred(4)
Advanta Corp.:
7.50% 2000 9,700 9,579
Series B, 7.00% 2001 5,500 5,127
Series D, 6.814% 2002 10,000 9,034
Series D, 6.98% 2002 2,000 1,816 .92
Chevy Chase Bank, FSB 9.25% 2008 2,000 2,010
Chevy Chase Preferred Capital Corp. 10.375% 214share 11,449 .48
Providian Financial Corp. 9.525% 2027(4) $15,000 13,169 .47
Sakura Capital Funding 6.446% (undated)(4),(7) 14,000 12,250 .44
Komercni Finance BV 9.00%/10.75% 2008(1),(4) 9,950 9,079 .33
IBJ Preferred Capital Co. LLC, Series A, 8.79% 6,750 6,446 .23
noncumulative preferred(4)
Superior Financial Corp. 8.65% 2003(4) 6,000 5,790 .21
SocGen Real Estate Co. LLC, Series A, 6,300 5,722 .21
7.64%/8.406% 2049(1),(4)
BNP U.S. Funding LLC, Series A, 7.738% 4,750 4,439 .16
noncumulative preferred(4)
GS Escrow Corp. 7.125% 2005 4,000 3,732 .13
--------------------
138,674 4.99
--------------------

Forest Products & Paper - 4.12%
Kappa Beheer BV:
0%/12.50% 2009(1),(4) 26,250 15,532
10.625% 2009(1),(4) 17,750 19,018 1.24
Container Corp. of America:
10.75% 2002 5,250 5,421
9.75% 2003 21,500 21,984
Series A, 11.25% 2004 5,500 5,720 1.19
Pacifica Papers Inc. 10.00% 2009 15,750 15,947 .57
Packaging Corp. of America:
9.625% 2009(4) 1,250 1,263
12.375% preferred 2010(2),(3),(4) 63share 7,023 .30
Advance Agro Capital BV 13.00% 2007 $10,125 7,417 .27
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 4,400 3,311
10.00% 2007 5,200 2,795 .22
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002 5,000 3,088
10.75% 2007 2,925 1,587 .17
Copamex Industrias, SA de CV, Series B, 11.375% 2004 4,625 4,024 .14
APP International Finance Co. BV 11.75% 2005 275 182 .02
--------------------
114,312 4.12
--------------------

Technology & Electronics - 3.62%
Advanced Micro Devices, Inc.:
11.00% 2003 11,000 9,900
6.00% convertible subordinated notes 2005 12,000 8,880 .68
Zilog, Inc. 9.50% 2005 18,800 17,390 .63
Micron Technology, Inc. 6.50% 2005(4) 20,000 15,600 .56
Flextronics International Ltd. 8.75% 2007 13,750 13,612 .49
Therma-Wave, Inc. 10.625% 2004 13,250 9,673 .35
EarthWatch Inc.:
0%/12.50% 2005(1),(4),(5) 8,640 5,599
Series B, 7.00% convertible preferred 2009(2),(3),(4),(5) 725 2,500
Series C, 8.50% convertible preferred 2009(2),(3),(4),(5) 343 590 .31
SCG Holding Corp., Semiconductor Components 7,000 7,140 .26
Industries, LLC 12.00% 2009(4)
Samsung Electronics Co., Ltd. 7.45% 2002(4) 6,000 5,815 .21
Fairchild Semiconductor Corp. 10.375% 2007(4) 4,000 3,960 .13
--------------------
100,659 3.62
--------------------

Energy-Related - 3.32%
Cross Timbers Oil Co.:
Series B, 9.25% 2007 10,775 10,667
8.75% 2009 17,620 16,827 .99
Pogo Producing Co.:
8.75% 2007 16,500 15,758
10.375% 2009 6,500 6,760 .81
Petro Stopping Centers, LP 10.50% 2007 10,250 9,994 .36
Petrozuata Finance, Inc.:
Series A, 7.63% 2009(4) 3,500 2,625
Series B, 8.22% 2017(4) 6,000 4,080 .24
HS Resources, Inc. 9.25% 2006 6,250 6,156 .22
Clark Refining & Marketing, Inc.:
8.375% 2007 1,500 1,312
8.875% 2007 4,500 3,757 .18
McDermott Inc. 9.375% 2002 3,275 3,397 .12
Casecnan Water and Energy Co., Inc., Series B, 11.95% 2010 3,500 3,264 .12
Kelley Oil & Gas Corp.:
10.375% senior subordinated notes 2006 2,975 1,398
10.375% 2006 2,200 1,034 .09
PDVSA Finance Ltd. 9.375% 2007(4) 2,500 2,390 .09
Newfield Exploration Co., Series B, 7.45% 2007 1,750 1,641 .06
Pemex Finance Ltd. 10.61% 2017(4) 1,000 1,015 .04
--------------------
92,075 3.32
--------------------
Miscellaneous Service Companies - 2.70%
Safety-Kleen Services, Inc. 9.25% 2008 19,375 19,472
Safety-Kleen Corp. 9.25% 20009 4,750 4,774 .87
Allied Waste North America, Inc.:
7.625% 2006 500 451
10.00% 2009(4) 24,750 23,079 .85
USA Waste Services, Inc. 4.00% 2002 9,500 8,265
WMX Technologies, Inc. 6.375% 2003 1,000 920
Waste Management, Inc. 6.875% 2009 (4) 1,500 1,307 .38
Iron Mountain Inc.:
8.75% 2009 5,370 5,048
10.125% 2009 3,000 3,105 .29
Protection One Alarm Monitoring, Inc. 13.625% 2005 6,166 5,611 .20
Concentra Operating Corp., Series A, 13.00% 2009(4) 3,000 3,000 .11
--------------------
75,032 2.70
--------------------
Consumer Products - 2.28%
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 9,750 9,555
8.75% 2003 8,900 8,677 .66
Delta Beverage Group, Inc. 9.75% 2003 15,735 15,853 .57
Fage Dairy Industry SA 9.00% 2007 9,250 8,371 .30
Salton/Maxim Housewares, Inc. 10.75% 2005 7,050 7,209 .26
DGS International Finance Co.:
10.00% 2007(4) 6,250 4,141
10.00% 2007 275 182 .16
Home Products International, Inc. 9.625% 2008 3,250 2,892 .10
New World Pasta Co. 9.25% 2009 3,000 2,790 .10
AKI, Inc. 10.50% 2008 1,250 1,112
AKI Holding Corp. 0%/13.50% 2009(1) 3,750 1,575 .10
WestPoint Stevens Inc. 7.875% 2005 1,000 935 .03
--------------------
63,292 2.28
--------------------

Health & Personal Care - 1.80%
Paracelsus Healthcare Corp. 10.00% 2006 35,825 24,361 .87
Integrated Health Services, Inc.:
5.75% convertible debentures 2001 11,000 1,430
10.25% 2006 11,250 1,800
Series A, 9.50% 2007 37,500 6,000
Series A, 9.25% 2008 46,250 7,400 .60
Sun Healthcare Group, Inc.:
Series B, 9.50% 2007(6) 24,875 2,488
9.375% 2008(4),(6) 19,110 1,911 .16
Tenet Healthcare Corp. 8.00% 2005 3,750 3,563 .13
Mariner Post-Acute Network, Inc.:
9.50% 2007(6) 750 45
0%/10.50% 2007(1),(6) 5,900 295
Mariner Health Group, Inc. 9.50% 2006(6) 13,625 273 .02
RainTree Healthcare Corp. 11.00% 2003(5),(6) 2,207 552 .02
--------------------
50,118 1.80
--------------------

Merchandising - 1.73%
Randall's Food Markets, Inc. 9.375% 2007 11,500 12,535 .45
Kmart Corp. 9.78% 2020 10,500 10,762 .39
DR Securitized Lease Trust, pass-through 9,855 9,855 .35
certificates, Series 1994 K-2, 9.35% 2019(8)
Boyds Collection, Ltd., Series B, 9.00% 2008 8,803 8,627 .31
Sunglass Hut International, Inc 5.25% convertible 5,500 4,249 .16
debentures 2003
Fred Meyer, Inc.:
7.375% 2005 1,000 986
7.45% 2008 1,000 988 .07
--------------------
48,002 1.73
--------------------

Metals & Materials - 0.59%
Doe Run Resources Corp., Series B, 11.25% 2005 9,500 8,930 .32
Kaiser Aluminum & Chemical Corp. 12.75% 2003 4,500 4,545 .16
Freeport-McMoRan Copper & Gold Inc.:
7.50% 2006 100 75
7.20% 2026 3,825 2,875 .11
--------------------
16,425 .59
--------------------

Transportation - 0.51%
Teekay Shipping Corp. 8.32% 2008 12,500 11,625 .41
USAir, Inc., pass-through trust, Series 1993-A3, 2,650 2,647 .10
10.375% 2013(8)
--------------------
14,272 .51
--------------------

Other - 1.09%
Wharf International Finance Ltd., Series A, 10,000 8,922 .32
7.625% 2007
M.D.C. Holdings, Inc. 8.375% 2008 9,250 8,325 .30
Swire Pacific Offshore Financing Ltd. 9.33% 352share 7,560 .27
cumulative guaranteed perpetual capital securities(4)
Mosaic Re Ltd. 9.062% 2000(4),(7) $5,500 5,431 .20
--------------------
30,238 1.09
--------------------

Private Issue Collateralized Mortgage Obligations/
Asset-Backed Sercurities - 0.68%
Gramercy Place Insurance Ltd., Series 1998-A, 12,500 12,441 .45
Class C-2, 8.95% 2002(4)
Chase Commercial Mortgage Securities Corp., 5,000 4,221 .15
Series 1998-2, Class E, 6.39% 2030(8)
GMAC Commercial Mortgage Securities, Inc., 2,500 2,156 .08
Series 1997-C2, Class E, 7.624% 2011
Resolution Trust Corp., Series 1993-C1, Class E, 13 13 .00
9.50% 2024(8)
--------------------
18,831 .68
--------------------

U.S. Treasury Obligations - 0.98%
7.50% November 2001 20,000 20,716 .75
7.50% February 2005 6,000 6,413 .23
--------------------
27,129 .98
--------------------

Governments(Excluding U.S.) - 1.82%
United Mexican States Government:
0% 2003(5) $768 0
Eurobonds:
Global 11.375% 2016 7,695 8,137
Series A, units, 5.875% 2019(7) 500 428
Global 11.50% 2026 2,625 2,897 .41
Panama (Republic of):
Interest Reduction Bond 4.25% 2014(4),(7) 11,400 8,266
Past Due Interest Eurobond 6.50% 2016(7) 540 388
8.875% 2027 1,250 1,003 .35
Argentina (Republic of):
Series L, 5.938% Eurobonds, 2005(7) 930 817
11.75% 2007(4) ARP4,130 3,532
11.75% 2009 $270 261
11.375% 2017 2,750 2,592
9.75% 2027 1,575 1,319 .31
Philippines (Republic of):
8.875% 2008 4,500 4,410
9.875% 2019 3,000 2,850 .26
Brazil (Federal Republic of):
Debt Conversion Bonds, Series L:
5.938% 2012(7) 2,750 1,657
Bearer, 5.938% 2012(7) 4,500 2,711
Bearer 8.00% 2014(2) 1,942 1,217 .20
Venezuela (Republic of):
Eurobond 6.313% 2007(7) 1,619 1,257
Front Loaded Interest Reduction Bond, Series A, 762 577
6.00% 2007(6)
9.25% 2027 1,510 997 .10
Turkey (Republic of) 12.375% 2009 2,675 2,662 .10
Bulgaria (Republic of), Front Loaded Interest 1,770 1,112 .04
Reduction Bond 2.75% 2012(7)
South Africa (Republic of) 13.00% 2010 6,900 1,027 .04
Mendoza (Province of) 10.00% 2007(4) 500 351 .01
--------------------
50,468 1.82
Number of --------------------
Shares
Common Stocks & Warrants - 4.06%
Price Communications Corp.(3) 879,382 22,040 .79
Omnipoint Corp.(3),(4) 328,211 18,339 .66
COLT Telecom Group PLC, warrants, expire 2006 18,250 13,549 .49
(United Kingdom)(3),(4),(5)
Nortel Inversora SA, preferred, Class A (American 939,685 11,953 .43
Depository Receipts) (Argentina)(4),(5)
ACME Communications, Inc.(3) 269,104 8,342 .30
Clear Channel Communications, Inc.(3) 81,012 6,471 .23
Viatel, Inc.(3) 205,099 6,063 .22
Cross Timbers Oil Co. 350,000 4,725 .17
FelCor Lodging Trust Inc. 225,000 3,938 .14
Cumulus Media Inc., Class A (3) 100,000 3,269 .12
Infinity Broadcasting Corp.(3) 106,800 3,131 .11
Verio Inc., warrants, expire 2004(3),(4) 18,450 2,005 .07
Time Warner Telecom Inc.(3) 81,900 1,710 .06
Integrated Health Services, Inc.(3) 1,000,407 1,563 .06
MCI WorldCom, Inc.(3) 21,000 1,509 .05
Esat Telecom Group PLC, warrants, expire 2007 11,250 1,060 .04
(formerly Esat Holdings Ltd.) (Ireland)(3),(4),(5)
Radio One Inc., Class A(3) 22,900 950 .03
Comunicacion Celular SA, Class B, warrants, 15,000 937 .03
expire 2003 (Colombia)(3),(4)
NTL Inc., warrants, expire 2008(United Kingdom - 6,412 466 .02
Incorporated in USA)(3),(4),(5)
Allegiance Telecom, Inc., warrants, 5,000 303 .01
expire 2008(3),(4),(5)
Globalstar Telecommunications Ltd., warrants, 2,000 134 .01
expire 2004(3)
CellNet Data Systems, Inc., warrants, 47,786 58 .01
expire 2007(3),(4),(5)
KMC Telecom Holdings Inc., warrants, 22,500 56 .01
expire 2008(3),(4)
Protection One Alarm Monitoring, Inc., warrants, 30,400 49 .00
expire 2005(3),(4),(5)
RainTree Healthcare Corp.(3),(5) 610,551 31 .00
McCaw International, Ltd., warrants, 8,500 21 .00
expire 2007(3),(4),(5)
Conecel Holdings Ltd., Class B, warrants, 142,450 14 .00
expire 2000 (Ecuador)(3),(4),(5)
Tultex Corp.:
Warrants, expire 2007(3),(5) 81,220 1 .00
Warrants, expire 2007(3),(5) 40,610 0 .00
Loral Space & Communications Ltd.(Bermuda)(3) 1 0 .00
Teletrac Holdings, Inc.:
Warrants(3),(4) 13,550 0 .00
Class A, warrants 384,986 0 .00
TVN Entertainment Corp., warrants, expire 2008(3),(4),(5) 13,250 0 .00
V2 Music Holdings PLC(United Kingdom):,
Warrants, expire 2000(3),(4) 2,250 0 .00
Warrants, expire 2008(3),(4) 10,905 0 .00
--------------------
112,687 4.06
--------------------
Total Bonds, Notes & Equity Securities 2,601,35 93.66
(cost: $2,815,769,000)
Principal --------------------
Amount
Short-Term Securities - 4.40%
General Electric Capital Corp. 5.50% due 10/1/99 $32,170 32,164 1.16
Alcoa of Australia Ltd.:
5.10% due 10/14/99 800 798
5.10% due 10/22/99 24,700 24,621 .92
CIT Group, Inc.:
5.28% due 10/27/99 7,700 7,670
5.30% due 10/29/99 17,300 17,226 .90
Motiva Enterprises LLC, 5.16% due 10/13/99 20,000 19,962 .72
Eastman Kodak Co.:
5.24% due 10/5/99 14,700 14,689
5.30% due 11/10/99 5,000 4,970 .70
--------------------
Total Short-Term Securities (cost: $122,103,000) 122,100 4.40
--------------------

Total Investment Securities (cost: $2,937,872,000) 2,723,45 98.06

Excess of cash and receivables over payables 53,938 1.94
----------------------
Net Assets $2,777,38 100.00%
========= =======
(1)Step bond; coupon rate will increase at a later date.
(2)Payment in kind. The issuer has the option of
paying additional securities in lieu of cash.
(3)Non-income-producing security.
(4)Purchased in a private placement transaction;
resale may be limited to qualified institutional buyers;
resale to the public may require registration.
(5)Valued under procedures established by the
Board of Trustees.
(6)Company not making interest payments,
bankruptcy proceedings pending.
(7)Coupon rate may change periodically.
(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 September 30, 1999 (dollars in thousands)
<S> <C> <C>
Assets:
Investment securities
(cost: $2,937,872) $ 2,723,451
Cash 1,148
Receivables for--
Sales of investments $ 6,851
Sales of fund's shares 5,722
Forward currency contracts - net 24
Accrued dividends and interest 54,882 67,479
------------ ------------
2,792,078
Liabilities:
Payables for--
Purchases of investments 4,777
Repurchases of fund's shares 5,223
Dividends on fund's shares 1,392
Forward currency contracts - net 1,729
Management services 1,068
Accrued expenses 500 14,689
------------ ------------
Net Assets at September 30, 1999 --
Equivalent to $13.52 per share on
205,378,936 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $ 2,777,389
============

Statement of Operations
for the year ended September 30, 1999
(dollars in thousands)
Investment Income:
Income:
Dividends $ 4,347
Interest 263,815 $ 268,162
------------
Expenses:
Management services fee 12,363
Distribution expenses 6,614
Transfer agent fee 1,803
Reports to shareholders 133
Registration statement and prospectus 290
Postage, stationery and supplies 358
Trustees' fees 29
Auditing and legal fees 55
Custodian fee 71
Taxes other than federal income tax 40
Other expenses 50 21,806
------------ ------------
Net investment income 246,356
------------
Realized Loss and Unrealized
Depreciation on Investments:
Net realized loss (23,484)
Net change in unrealized depreciation on:
Investments (28,268)
Open forward currency contracts 972 (27,296)
------------ ------------

Net realized loss and change in unrealized
depreciation on investments (50,780)
------------
Net Increase in Net Assets
Resulting from Operations $ 195,576
============

Statement of Changes in Net Assets
(dollars in thousands)

Year ended Year ended
September 30, 1999 September 30, 1998
Operations: ------------ ------------
Net investment income $ 246,356 $ 206,542
Net realized (loss) gain on investments (23,484) 16,864
Net change in unrealized depreciation
on investments (27,296) (298,852)
------------ ------------
Net increase (decrease) in net assets
resulting from operations 195,576 (75,446)
------------ ------------

Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (244,894) (200,841)
Distributions from net realized
gain on investments (8,119) (47,160)
------------ ------------
Total dividends and distributions (253,013) (248,001)
------------ ------------
Capital Share Transactions:
Proceeds from shares sold:
75,509,296 and 64,577,666
shares, respectively 1,060,634 986,681
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on
investments: 12,742,880 and
11,414,562 shares, respectively 178,581 172,376
Cost of shares repurchased:
54,497,988 and 38,731,190
shares, respectively (764,282) (583,545)
------------ ------------
Net increase in net assets
resulting from capital share
transactions 474,933 575,512
------------ ------------
Total Increase in Net Assets 417,496 252,065

Net Assets:
Beginning of year 2,359,893 2,107,828
------------ ------------
End of year (including undistributed
net investment income: $18,569
and $14,347, respectively) $ 2,777,389 $ 2,359,893
============ ============

See Notes to Financial Statements

</TABLE>

Notes to Financial Statements

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 financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:

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. The ability of the issuers of the debt securities held by the fund to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Short-term securities maturing within 60 days are
valued at amortized cost, which approximates market value. 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 and 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 and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.

SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
In the event securities are purchased on a delayed delivery or when-issued
basis, the fund will instruct the custodian to segregate liquid assets
sufficient to meet its payment obligations in these transactions. Interest
income is recognized on an accrual basis. Market discounts, premiums, and
original issue discounts on securities purchased are amortized daily over the
expected life of the security.

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. Purchases and sales of forward currency exchange
contracts (having the same settlement date and broker) are offset and presented
net in the statement of assets and liabilities.

2. NON-U.S. INVESTMENTS

INVESTMENT RISK - Investments in securities of non-U.S. issuers in certain
countries involve special investment risks. These risks may include, but are
not limited to, investment and repatriation restrictions, revaluation of
currencies, adverse political, social and economic developments, government
involvement in the private sector, limited and less reliable investor
information, lack of liquidity, certain local tax law considerations, and
limited regulation of the securities markets.

CURRENCY GAINS AND LOSSES - Net realized currency losses on dividends,
interest, sales of non-U.S. bonds and notes, and other receivables and
payables, on a book basis, were $51,000 for the year ended September 30, 1999.

3. FEDERAL INCOME TAXATION

The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income and net capital gains for the fiscal year. As a
regulated investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.

As of September 30, 1999, net unrealized depreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $214,355,000, of which $146,302,000 related to appreciated
securities and $360,657,000 related to depreciated securities. During the year
ended September 30, 1999, the fund realized, on a tax basis, a net capital loss
of $26,403,000 on securities transactions. The fund has deffered, for tax
purposes, to fiscal year ending September 30, 2000, the recognition of capital
losses totaling $21,885,000 which were realized during the period November 1,
1998 through September 30, 1999. The fund had available at September 30, 1999 a
net capital loss carryforward totaling $4,518,000 which may be used to offset
capital gains realized during subsequent years through 2007 and thereby relieve
the fund and its shareholders of any federal income tax liability with respect
to the capital gains that are so offset. The fund will not make distributions
from capital gains while a capital loss carryforward remains. The fund has
recognized, for tax purposes, losses relating to non-U.S. currency transactions
totaling $3,668,000 which were realized during the period November 1, 1997
through September 30, 1998. Net gains related to non-U.S. currency transactions
of $2,918,000 were treated as an adjustment to ordinary income for federal
income tax purposes. The cost of portfolio securities, excluding forward
currency contracts, for book and federal income tax purposes was $2,937,872 at
September 30, 1999.

4. FEES AND TRANSACTIONS WITH RELATED PARTIES

INVESTMENT ADVISORY FEE - The fee of $12,363,000 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 year ended
September 30, 1999, distribution expenses under the Plan were $6,614,000. As of
September 30, 1999, accrued and unpaid distribution expenses were $434,000.

American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $2,990,000 (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 $1,803,000.

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 September 30, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993), net of any
payments to Trustees, were $56,000.

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.

5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES

The fund made purchases and sales of investment securities, excluding
short-term securities, of $1,144,912,000 and $754,653,000, respectively, during
the year ended September 30, 1999.

As of September 30, 1999, accumulated net realized loss on investments was
$26,403,000 and paid-in capital was $3,001,283,000. The fund reclassified
$2,088,000 and $30,000 from undistributed net realized gains and net investment
income, respectively, to additional paid-in capital. Additionally, the fund
reclassified $2,841,000 and $51,000 from undistributed net realized gains and
realized currency losses, respectively, to net investment income for the year
ended September 30, 1999 as a result of permanent differences between book and
tax.

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 $71,000 was paid by these credits rather than in cash.

At September 30, 1999, the fund had outstanding forward currency contracts
to sell non-U.S. currencies as follows:

<TABLE>
<S> <C> <C> <C> <C>
Contract Amount U.S. Valuation at 9/30/99
-------------- ------------ ------------ ------------

Unrealized
Non-U.S. Currency Sales Contracts Non-U.S. U.S. Amount Depreciation
- ------------------------------------ ------------ ------------ ------------ ------------

Euros
expiring 10/21/99 to 1/31/00 E40,135,000 $42,364,000 $42,992,000 $(628,000)
British pounds
expiring 12/1/99 to 2/10/00 L28,295,000 45,531,000 46,608,000 (1,077,000)
------------ ------------ ------------
$87,895,000 $89,600,000 $(1,705,000)
============ ============ ============
</TABLE>

<TABLE>
Per-Share
Data and Ratios

<S> <C> <C> <C> <C> <C>
Year endSeptembe 30
1999 1998 1997 1996 1995
-------- -------------------------------
Net Asset Value, Beginning
of Year $13.75 $15.69 $14.86 $14.30 $13.97
-------- -------------------------------
Income from Investment
Operations:
Net investment income 1.28 1.30 1.26 1.29 1.33
Net gains or losses on
securities (both realized
and unrealized) (.17) (1.60) .83 .59 .39
-------- -------------------------------
Total from investment operations 1.11 (.30) 2.09 1.88 1.72
-------- -------------------------------
Less Distributions:
Dividends (from net
investment income) (1.29) (1.30) (1.24) (1.32) (1.32)
Distributions (from
capital gains) (.05) (.34) (.02) - (.07)
-------- -------------------------------
Total distributions (1.34) (1.64) (1.26) (1.32) (1.39)
-------- -------------------------------
Net Asset Value, End of Year $13.52 $13.75 $15.69 $14.86 $14.30
======== ===============================
Total Return* 8.11% (2.40)% 14.66%13.68% 13.34%

Ratios/Supplemental Data:
Net assets, end of year
(in millions) $2,777 $2,360 $2,108 $1,547 $1,111
Ratio of expenses to average
net assets .82% .81% .82% .87% .89%
Ratio of net income to
average net assets 9.21% 8.76% 8.35% 8.90% 9.72%
Portfolio turnover rate 29.79 % 54.63% 53.55% 39.74% 29.56%

*Excludes maximum sales charge of 4.75%.

</TABLE>

Independent Auditors' Report

To the Board of Trustees and Shareholders of
American High-Income Trust:

We have audited the accompanying statement of assets and liabilities of
American High-Income Trust (the "fund"), including the investment portfolio, as
of September 30, 1999, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the per-share data and ratios for each of the five
years in the period then ended. These financial statements and per-share data
and ratios are the responsibility of the fund's management. Our responsibility
is to express an opinion on these financial statements and per-share data and
ratios based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
per-share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at September 30, 1999, by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of American High-Income Trust as of September 30, 1999, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the per-share data and ratios
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.

/s/Deloitte & Touche LLP

Los Angeles, California
October 29, 1999

1999 TAX INFORMATION (unaudited)

We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions.

Corporate shareholders may exclude up to 70% of qualifying dividends
received during the year. For purposes of computing this exclusion, 1% of the
dividends paid by the fund from net investment income represent qualifying
dividends.

Certain states may exempt from income taxation a portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, 0.9% of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.

Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.

SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV WHICH WILL BE
MAILED IN JANUARY 2000 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON
THEIR 1999 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS.

PART C
OTHER INFORMATION
AMERICAN HIGH-INCOME TRUST

ITEM 23. EXHIBITS

(a) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(b) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(c) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(d) Amended Investment Advisory and Service Agreement dated November 1, 1999
(e) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(f) None
(g) Foreign Custody Manager Agreement
(h) None
(I) Not applicable to this filing
(j) Consent of Independent Auditors
(k) None
(l) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(m) Previously filed (see Post-Effective Amendment No. 14 filed November 26,
1997)
(n) None
(o) None
(p) Code of Ethics

ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT

None

ITEM 25. INDEMNIFICATION

Registrant is a joint-insured under an Investment Advisor/Mutual Fund Errors
and Omissions Policies written by American International Surplus Lines
Insurance Company, Chubb Custom Insurance Company and ICI Mutual Insurance
Company which insures its officers and Trustees against certain liabilities.
However, in no event will Registrant maintain insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify
the individual.

ITEM 25. INDEMNIFICATION (CONTINUED)

Article VI of the Trust's By-Laws states:

(a) The Trust shall indemnify any Trustee or officer of the Trust who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than action by or in the right of the Trust) by reason
of the fact that such person is or was such Trustee or officer or an employee
or agent of the Trust, or is or was serving at the request of the Trust as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe such
person's conduct was unlawful.

The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the person reasonably believed
to be opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that such
person's conduct was unlawful.

(b) The Trust shall indemnify any Trustee or officer of the Trust who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Trust to procure a judgment
in its favor by reason of the fact that such person is or was such Trustee or
officer or an employee or agent of the Trust, or is or was serving at the
request of the Trust as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees), actually and reasonably incurred by such
person in connection with the defense or settlement of such action or suit if
such person acted in good faith and in a manner such person reasonably believed
to be in or not opposed to the best interests of the Trust, except that no
indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable for negligence or
misconduct in the performance of such person's duty to the Trust unless and
only to the extent that the court in which such action or suit was brought, or
any other court having jurisdiction in the premises, shall determine upon
application that, despite the adjudication of liability but in view of all
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.

(c) To the extent that a Trustee or officer of the Trust has been successful
on the merits in defense of any action, suit or proceeding referred to in
subparagraphs (a) or (b) above or in defense of any claim, issue or matter
therein, such person shall be indemnified against expenses (including
attorney's fees) actually and reasonably incurred by such person in connection
therewith, without the necessity for the determination as to the standard of
conduct as provided in subparagraph (d).

ITEM 25. INDEMNIFICATION (CONTINUED)

(d) Any indemnification under subparagraph (a) or (b) (unless ordered by a
court) shall be made by the Trust only as authorized in the specific case upon
a determination that indemnification of the Trustee or officer is proper in the
circumstances because such person has met the applicable standard of conduct
set forth in subparagraph (a) or (b). Such determination shall be made (i) by
the Board by a majority vote of a quorum consisting of Trustees who were not
parties to such action, suit or proceeding, or (ii) if such a quorum of
disinterested Trustees so directs, by independent legal counsel in a written
opinion; and any determination so made shall be conclusive.

(e) Expenses incurred in defending a civil or criminal action, writ or
proceeding may be paid by the Trust in advance of the final disposition of such
action, suit or proceeding, as authorized in the particular case, upon receipt
of an undertaking by or on behalf of the Trustee or officer to repay such
amount unless it shall ultimately be determined that such person is entitled to
be indemnified by the Trust as authorized herein. Such determination must be
made by disinterested trustees or independent legal counsel.

(f) Agents and employees of the Trust who are not Trustees or officers of the
Trust may be indemnified under the same standards and procedures set forth
above, in the discretion of the Board.

(g) Any indemnification pursuant to this Article shall not be deemed exclusive
of any other rights to which those indemnified may be entitled and shall
continue as to a person who has ceased to be a Trustee or officer and shall
inure to the benefit of the heirs, executors and administrators of such a
person.

(h) Nothing in the Declaration or in these By-Laws shall be deemed to protect
any Trustee or officer of the Trust against any liability to the Trust or to
its shareholders to which such person would otherwise be subject by reason of
willful malfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of such
person's office.

(i) The Trust shall have power to purchase and maintain insurance on behalf of
any person against any liability asserted against or incurred by such person,
whether or not the Trust would have the power to indemnify such person against
such liability under the provisions of this Article. Nevertheless, insurance
will not be purchased or maintained by the Trust if the purchase or maintenance
of such insurance would result in the indemnification of any person in
contravention of any rule or regulation of the Securities and Exchange
Commission.

Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to Trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a Trustee, officer of controlling person of the registrant
in the successful defense of any action, suit or proceeding) is

ITEM 25. INDEMNIFICATION (CONTINUED)
asserted by such Trustee, officer of controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.

ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER

None

ITEM 27. PRINCIPAL UNDERWRITERS

(a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America,
Inc., The Investment Company of America, Intermediate Bond Fund of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., New World Fund, Inc., SMALLCAP World Fund, Inc., The
Tax-Exempt Bond Fund of America, Inc., The Tax-Exempt Money Fund of America,
U.S. Treasury Money Fund of America and Washington Mutual Investors Fund, Inc.

<TABLE>
<CAPTION>
(B) (1) (2) (3)

NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES

BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRANT

<S> <C> <C> <C>
David L. Abzug Regional Vice President None

27304 Park Vista Road

Agoura Hills, CA 91301

John A. Agar Vice President None

#61 Point West Circle

Little Rock, AR 72211

Robert B. Aprison Vice President None

2983 Bryn Wood Drive

Madison, WI 53711

L William W. Bagnard Vice President None

Steven L. Barnes Senior Vice President None

5400 Mount Meeker Road

Suite 1

Boulder, CO 80301-3508

B Carl R. Bauer Assistant Vice President None

Michelle A. Bergeron Senior Vice President None

4160 Gateswalk Drive

Smyrna, GA 30080

J. Walter Best, Jr. Regional Vice President None

9013 Brentmeade Blvd.

Brentwood, TN 37027

Joseph T. Blair Senior Vice President None

148 E. Shore Ave.

Groton Long Point, CT 06340

John A. Blanchard Vice President None

6421 Aberdeen Road

Mission Hills, KS 66208

Ian B. Bodell Senior Vice President None

P.O. Box 1665

Brentwood, TN 37024-1665

Mick L. Brethower Senior Vice President None

2320 North Austin Avenue

Georgetown, TX 78626

Alan Brown Regional Vice President None

4129 Laclede Avenue

St. Louis, MO 63108

B J. Peter Burns Vice President None

Brian C. Casey Regional Vice President None

8002 Greentree Road

Bethesda, MD 20817

Victor C. Cassato Senior Vice President None

609 W. Littleton Blvd.,
Suite 310

Greenwood Village, CO 80120

Christopher J. Cassin Senior Vice President None

19 North Grant Street

Hinsdale, IL 60521

Denise M. Cassin Vice President None

1301 Stoney Creek Drive

San Ramon, CA 94538

L Larry P. Clemmensen Director None

L Kevin G. Clifford Director, President None
and Co-Chief

Executive Officer

Ruth M. Collier Senior Vice President None

29 Landsdowne Drive

Larchmont, NY 10538

H Carlo Cordasco Assistant Vice President None

S David Coolbaugh Assistant Vice President None

Thomas E. Cournoyer Vice President None

2333 Granada Boulevard

Coral Gables, FL 33134

Douglas A. Critchell Senior Vice President None

3521 Rittenhouse Street, N.W.

Washington, D.C. 20015

L Carl D. Cutting Vice President None

Daniel J. Delianedis Regional Vice President None

8689 Braxton Drive

Eden Prairie, MN 55347

Michael A. Dilella Vice President None

P. O. Box 661

Ramsey, NJ 07446

G. Michael Dill Senior Vice President None
505 E. Main Street

Jenks, OK 74037

Kirk D. Dodge Senior Vice President None

633 Menlo Avenue, Suite 210

Menlo Park, CA 94025

Peter J. Doran Director, Senior Vice None
President

Suite 216W

100 Merrick Road

Rockville Centre, NY 11570

L Michael J. Downer Secretary Vice President

Robert W. Durbin Vice President None

74 Sunny Lane

Tiffin, OH 44883

I Lloyd G. Edwards Senior Vice President None

L Paul H. Fieberg Senior Vice President None

John Fodor Vice President None

15 Latisquama Road

Southborough, MA 01772

Daniel B. Frick Regional Vice President None

845 Western Avenue

Glen Ellyn, IL 60137

Clyde E. Gardner Senior Vice President None

Route 2, Box 3162

Osage Beach, MO 65065

B Evelyn K. Glassford Vice President None

Jeffrey J. Greiner Vice President None

12210 Taylor Road

Plain City, OH 43064

L Paul G. Haaga, Jr. Director Chairman of the Board

B Mariellen Hamann Assistant Vice President None

David E. Harper Senior Vice President None

150 Old Franklin School Road

Pittstown, NJ 08867

H Mary Pat Harris Assistant Vice President None

Ronald R. Hulsey Vice President None

6744 Avalon

Dallas, TX 75214

Robert S. Irish Regional Vice President None

1225 Vista Del Mar Drive

Delray Beach, FL 33483

Michael J. Johnston Director None

630 Fifth Avenue, 36th Floor

New York, NY 10111

B Damien M. Jordan Vice President None

Arthur J. Levine Senior Vice President None

12558 Highlands Place

Fishers, IN 46038

B Karl A. Lewis Assistant Vice President None

T. Blake Liberty Regional Vice President None

5506 East Mineral Lane

Littleton, CO 80122

Mark J. Lien Regional Vice President None

5570 Beechwood Terrace

West Des Moines, IA 50266

L Lorin E. Liesy Assistant Vice President None

L Susan G. Lindgren Vice President - None
Institutional

Investment Services

LW Robert W. Lovelace Director None

Stephen A. Malbasa Vice President None

13405 Lake Shore Blvd.

Cleveland, OH 44110

Steven M. Markel Senior Vice President None

5241 South Race Street

Littleton, CO 80121

L J. Clifton Massar Director, Senior Vice None
President

L E. Lee McClennahan Senior Vice President None

S John V. McLaughlin Senior Vice President None

Terry W. McNabb Vice President None

2002 Barrett Station Road

St. Louis, MO 63131

L R. William Melinat Vice President - None
Institutional

Investment Services

David R. Murray Vice President None

60 Briant Drive

Sudbury, MA 01776

Stephen S. Nelson Vice President None

P.O. Box 470528

Charlotte, NC 28247-0528

William E. Noe Regional Vice President None

304 River Oaks Road

Brentwood, TN 37027

Peter A. Nyhus Vice President None

3084 Wilds Ridge Court

Prior Lake, MN 55372

Eric P. Olson Vice President None

62 Park Drive

Glenview, IL 60025

Gary Peace Regional Vice President None

291 Kaanapali Drive

Napa, CA 94558

Samuel W. Perry Regional Vice President None

6133 Calle del Paisano

Scottsdale, AZ 85251

Fredric Phillips Senior Vice President None

175 Highland Avenue, 4th Floor

Needham, MA 02494

B Candance D. Pilgrim Assistant Vice President None

Carl S. Platou Vice President None

7455 80th Place, S.E.

Mercer Island, WA 98040

L John O. Post Senior Vice President None

S Richard P. Prior Vice President None

Steven J. Reitman Senior Vice President None

212 The Lane

Hinsdale, IL 60521

Brian A. Roberts Vice President None

P.O. Box 472245

Charlotte, NC 28247

George S. Ross Senior Vice President None

55 Madison Avenue

Morristown, NJ 07962

L Julie D. Roth Vice President None

L James F. Rothenberg Director None

Douglas F. Rowe Vice President None

414 Logan Ranch Road

Georgetown, TX 78628

Christopher S. Rowey Regional Vice President None

9417 Beverlywood Street

Los Angeles, CA 90034

Dean B. Rydquist Senior Vice President None

1080 Bay Pointe Crossing

Alpharetta, GA 30005

Richard R. Samson Senior Vice President None

4604 Glencoe Avenue, #4

Marina del Rey, CA 90292

Joseph D. Scarpitti Vice President None

31465 St. Andrews

Westlake, OH 44145

L R. Michael Shanahan Director None

David W. Short Chairman of the Board and None

1000 RIDC Plaza, Suite 212 Co-Chief Executive Officer

Pittsburgh, PA 15238

William P. Simon Senior Vice President None

912 Castlehill Lane

Devon, PA 19333

L John C. Smith Assistant Vice President - None

Institutional Investment
Services

Rodney G. Smith Vice President None

100 N. Central Expressway

Suite 1214

Richardson, TX 75080

S Sherrie Snyder-Senft Assistant Vice President None

Anthony L. Soave Regional Vice President None

8831 Morning Mist Drive

Clarkston, MI 48348

Theresa Souiller Assistant Vice President None

2652 Excaliber Court

Virginia Beach, VA 23454

Nicholas D. Spadaccini Regional Vice President None

855 Markley Woods Way

Cincinnati, OH 45230

L Kristen J. Spazafumo Assistant Vice President None

Daniel S. Spradling Senior Vice President None

181 Second Avenue

Suite 228

San Mateo, CA 94401

LW Eric H. Stern Director None

B Max D. Stites Vice President None

Thomas A. Stout Regional Vice President None

1004 Ditchley Road

Virginia Beach, VA 23451

Craig R. Strauser Vice President None

3 Dover Way

Lake Oswego, OR 97034

Francis N. Strazzeri Senior Vice President None

31641 Saddletree Drive

Westlake Village, CA 91361

L Drew W. Taylor Assistant Vice President None

S James P. Toomey Vice President None

I Christopher E. Trede Vice President None

George F. Truesdail Vice President None

400 Abbotsford Court

Charlotte, NC 28270

Scott W. Ursin-Smith Vice President None

60 Reedland Woods Way

Tiburon, CA 94920

J. David Viale Regional Vice President None

7 Gladstone Lane

Laguna Niguel, CA 92677

Thomas E. Warren Regional Vice President None

119 Faubel Street

Sarasota, FL 34242

L J. Kelly Webb Senior Vice President, None

Treasurer and Controller

Gregory J. Weimer Vice President None

206 Hardwood Drive

Venetia, PA 15367

B Timothy W. Weiss Director None

George Wenzel Regional Vice President None

3406 Shakespeare Drive

Troy, MI 48084

H J. D. Wiedmaier Assistant Vice President None

Timothy J. Wilson Vice President None

113 Farmview Place

Venetia, PA 15367

B Laura L. Wimberly Vice President None

H Marshall D. Wingo Director, Senior Vice President None

L Robert L. Winston Director, Senior Vice None
President

William R. Yost Vice President None

9320 Overlook Trail

Eden Prairie, MN 55347

Janet M. Young Regional Vice President None

1616 Vermont

Houston, TX 77006

Scott D. Zambon Regional Vice President None

2887 Player Lane

Tustin Ranch, CA 92782

</TABLE>

__________
L Business Address, 333 South Hope Street, Los Angeles, CA 90071
LW Business Address, 11100 Santa Monica Boulevard, 15th Floor, Los Angeles, CA
90025
B Business Address, 135 South State College Boulevard, Brea, CA 92821
S Business Address, 3500 Wiseman Boulevard, San Antonio, TX 78251
H Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
I Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240

ITEM 28. LOCATION OF ACCOUNTS AND RECORDS

Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, as amended, are maintained and held in the
offices of its investment adviser, Capital Research and Management Company, 333
South Hope Street, Los Angeles, California 90071, and/or 135 South State
College Boulevard, Brea, California 92821.

ITEM 28. LOCATION OF ACCOUNTS AND RECORDS (CONTINUED)

Registrant's records covering shareholder accounts are maintained and kept by
its transfer agent, American Funds Service Company, 135 South State College
Boulevard, Brea, California 92821, 8332 Woodfield Crossing Boulevard,
Indianapolis, IN 46240, 3500 Wiseman Boulevard, San Antonio, Texas 78251 and
5300 Robin Hood Road, Norfolk, VA 23513.

Registrant's records covering portfolio transactions are maintained and kept
by its custodian, The Chase Manhattan Bank, One Chase Manhattan Plaza, New
York, New York 10081.

ITEM 29. MANAGEMENT SERVICES

None

ITEM 30. UNDERTAKINGS

n/a

SIGNATURE OF REGISTRANT

Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant has duly caused this amended Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Los Angeles, and State of California, on the 26/th/
day of November, 1999.

AMERICAN HIGH-INCOME TRUST

By /s/ Paul G. Haaga, Jr.
(Paul G. Haaga, Jr., Chairman of the Board)

Pursuant to the requirements of the Securities Act of 1933, this amendment to
registration statement has been signed below on November 26, 1999, by the
following persons in the capacities indicated.

<TABLE>
<CAPTION>
<S> <C> <C>
SIGNATURE TITLE

(1) Principal Executive Officer:

/s/ David C. Barclay President

(David C. Barclay)

(2) Principal Financial Officer and
Principal Accounting Officer:

/s/ Anthony W. Hynes, Jr. Treasurer

(Anthony W. Hynes, Jr.)

(3) Trustees:

Richard G. Capen, Jr.*/1/ Trustee

H. Frederick Christie* Trustee

Don R. Conlan* Trustee

Diane C. Creel* Trustee

Martin Fenton, Jr.* Trustee

Leonard R. Fuller* Trustee

/s/ Abner G. Goldstine Vice Chairman and
Trustee

(Abner D. Goldstine)

/s/ Paul G. Haaga, Jr. Chairman and Trustee

(Paul G. Haaga, Jr.)

Richard G. Newman* Trustee

Frank M. Sanchez*/1/ Trustee

</TABLE>

*By /s/ Julie F. Williams
Julie F. Williams, Attorney-in-Fact

/1/ Powers of Attorney attached hereto.

POWER OF ATTORNEY
I, Richard G. Capen, Jr., the undersigned Trustee of American High-Income
Trust, a Massachusetts business trust, revoking all prior powers of attorney
given as a Trustee of American High-Income Trust do hereby constitute and
appoint Michael J. Downer, Paul G. Haaga, Jr., Anthony W. Hynes, Jr., Todd L.
Miller, Kimberly S. Verdick and Julie F. Williams, or any of them, to act as
attorneys-in-fact for and in my name, place and stead (1) to sign my name as
Trustee of said Trust to any and all Registration Statements of American
High-Income Trust File No. 33-17917 under the Securities Act of 1933 as amended
and/or the Investment Company Act of 1940, as amended, and any and all
amendments thereto, said Registration Statements and amendments to be filed
with the Securities and Exchange Commission, and to any and all reports,
applications or renewal of applications required by any State in the United
States of America in which this Trust is registered to sell shares, and (2) to
deliver any and all such Registration Statements and amendments, so signed, for
filing with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 as amended and/or the Investment Company Act of 1940, as
amended, granting to said attorneys-in-fact, and each of them, full power and
authority to do and perform every act and thing whatsoever requisite and
necessary to be done in and about the premises as fully to all intents and
purposes as the undersigned might or could do if personally present, hereby
ratifying and approving the acts of said attorneys-in-fact.

EXECUTED at Los Angeles, California, this 18th day of November, 1999.

/s/ Richard G. Capen, Jr.
Richard G. Capen, Jr., Trustee

POWER OF ATTORNEY

I, Frank M. Sanchez, the undersigned Trustee of American High-Income Trust, a
Massachusetts business trust, revoking all prior powers of attorney given as a
Trustee of American High-Income Trust do hereby constitute and appoint Michael
J. Downer, Paul G. Haaga, Jr., Anthony W. Hynes, Jr., Todd L. Miller, Kimberly
S. Verdick and Julie F. Williams, or any of them, to act as attorneys-in-fact
for and in my name, place and stead (1) to sign my name as Trustee of said
Trust to any and all Registration Statements of American High-Income Trust File
No. 33-17917 under the Securities Act of 1933 as amended and/or the Investment
Company Act of 1940, as amended, and any and all amendments thereto, said
Registration Statements and amendments to be filed with the Securities and
Exchange Commission, and to any and all reports, applications or renewal of
applications required by any State in the United States of America in which
this Trust is registered to sell shares, and (2) to deliver any and all such
Registration Statements and amendments, so signed, for filing with the
Securities and Exchange Commission under the provisions of the Securities Act
of 1933 as amended and/or the Investment Company Act of 1940, as amended,
granting to said attorneys-in-fact, and each of them, full power and authority
to do and perform every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as the
undersigned might or could do if personally present, hereby ratifying and
approving the acts of said attorneys-in-fact.

EXECUTED at Los Angeles, California, this 18th day of November, 1999.

/s/ Frank M. Sanchez
Frank M. Sanchez, Trustee

January 15, 1999

Capital Research and Management Company
333 South Hope Street, 55/th/ Floor
Los Angeles, CA 90071

RE: DELEGATION OF RESPONSIBILITIES UNDER RULE 17F-5

Dear Mesdames/Sirs:

This Agreement confirms, and sets forth the responsibilities of the parties in
connection with, the appointment of Capital Research and Management Company
("CRMC") as the Foreign Custody Manager of American High-Income Trust (the
"Trust"), in accordance with rule 17f-5, as amended, under the Investment
Company Act of 1940 (the "1940 Act"). CRMC hereby accepts such appointment as
of the date first written above. All capitalized terms used herein and not
otherwise defined have the meanings assigned in rule 17f-5.

The Trust may, from time to time and in accordance with this Agreement, place
or maintain in the care of an Eligible Foreign Custodian, any of the Trust's
investments (including non-U.S. currencies) for which the primary market is
outside the United States, and such cash and cash equivalents as are reasonably
necessary to effect the Trust's transactions in such investments, PROVIDED
THAT:

(a) CRMC, as Foreign Custody Manager, determines that the Trust's assets will
be subject to reasonable care, based on the standards applicable to custodians
in the relevant market, if maintained with the custodian, after considering all
factors relevant to the safekeeping of such assets, including, without
limitation:

(1) the custodian's practices, procedures, and internal controls, including,
but not limited to, the physical protections available for certificated
securities (if applicable), the method of keeping custodial records, and the
security and data protection practices;

(2) whether the custodian has the requisite financial strength to provide
reasonable care for the Trust's assets;

Capital Research and Management Company
January 15, 1999
Page 2

(3) the custodian's general reputation and standing and, in the case of a
securities depository, the depository's operating history and number of
participants; and

(4) whether the Trust will have jurisdiction over and be able to enforce
judgments against the custodian, such as by virtue of the existence of any
offices of the custodian in the U.S. or the custodian's consent to service of
process in the U.S.

(b) Each of the Trust's non-U.S. custody arrangements are governed by a written
contract (or, in the case of a Securities Depository, by such a contract, by
the rules or established practices or procedures of the depository, or by any
combination of the foregoing) that CRMC, as Foreign Custody Manager, has
determined will provide reasonable care for the Trust's assets based on the
standards set forth in paragraph (a) above.

(1) Such contract shall include provisions that provide:

(i) for indemnification or insurance arrangements (or any combination of the
foregoing) such that the Trust will be adequately protected against the risk of
loss of assets held in accordance with such contract;

(ii) that the Trust's assets will not be subject to any right, charge, security
interest, lien or claim of any kind in favor of the custodian or its creditors
except a claim of payment for their safe custody or administration or, in the
case of cash deposits, liens or rights in favor of creditors of the custodian
arising under bankruptcy, insolvency, or similar laws;

(iii) that beneficial ownership for the Trust's assets will be freely
transferable without the payment of money or value other than for safe custody
or administration;

Capital Research and Management Company
January 15, 1999
Page 3

(iv) that adequate records will be maintained identifying the assets as
belonging to the Trust or as being held by a third party for the benefit of the
Trust;

(v) that the Trust's independent public accountants will be given access to
those records or confirmation of the contents of those records; and

(vi) that the Trust will receive periodic reports with respect to the
safekeeping of the Trust's assets, including, but not limited to, notification
of any transfer to or from the Trust's account or a third party account
containing assets held for the benefit of the Trust.

(2) Such contract may contain, in lieu of any or all of the provisions
specified in subparagraph (1) above, such other provisions that CRMC, as
Foreign Custody Manager, determines will provide, in their entirety, the same
or a greater level of care and protection for Trust assets as the specified
provisions, in their entirety.

(c) (1) CRMC, as Foreign Custody Manager, will have established a system to
monitor the appropriateness of maintaining the Trust's assets with a particular
custodian under paragraph (a) above, and the contract governing the Trust's
arrangements under paragraph (b) above.

(2) If an arrangement no longer meets the requirements of paragraph (c), the
Trust must withdraw its assets from the custodian as soon as reasonably
practicable.

CRMC, as Foreign Custody Manager, will provide written reports notifying the
Trust's Board of Trustees of the placement of the Trust's assets with a
particular custodian and of any material change in the Trust's arrangements,
with the reports to be provided to the Board at such times as the Board deems
reasonable and appropriate based on the circumstances of the Trust's non-U.S.
custody arrangements.

CRMC, in performing the responsibilities delegated to it as the Trust's
Foreign Custody Manager, will exercise reasonable care, prudence and diligence
such as a person having responsibility for the safekeeping of the Trust's
assets would exercise.

Capital Research and Management Company
January 15, 1999
Page 4

This Agreement (and the appointment of CRMC as the Trust's Foreign Custody
Manager) may be terminated at any time, without payment or any penalty, by the
Board of Trustees of the Trust or by vote of a majority (within the meaning of
the 1940 Act) of the outstanding voting securities of the Trust, on sixty (60)
days' written notice to CRMC, or by CRMC on like notice to the Trust.

The obligations of the Trust under this Agreement are not binding upon any of
the Trustees, officers, employees, agents or shareholders of the Trust
individually, but bind only the Trust's estate. CRMC agrees to look solely to
the assets of the Trust for the satisfaction of any liability in respect of the
Trust under this Agreement and will not seek recourse against such Trustees,
officers, employees, agents or shareholders, or any of them, or any of their
personal assets for such satisfaction.

Very truly yours,

AMERICAN HIGH-INCOME TRUST

By: /s/ Julie F. Williams
Julie F. Williams, Secretary

ACCEPTED AND AGREED as of the date first written above:
CAPITAL RESEARCH AND
MANAGEMENT COMPANY

By: /s/ Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Executive Vice President

INDEPENDENT AUDITORS' CONSENT
American High-Income Trust:

We consent to (a) the use in this Post-Effective Amendment No. 17 to
Registration Statement No. 33-17917 on Form N-1A of our report dated October
29, 1999 appearing in the Financial Statements, which are included in Part B,
the Statement of Additional Information of such Registration Statement, (b) the
references to us under the heading "General Information" in such Statement of
Additional Information and (c) the reference to us under the heading "Financial
Highlights" in the Prospectus, which is a part of such Registration Statement.

DELOITTE & TOUCHE LLP

Los Angeles, California
November 24, 1999

<PAGE>
THE CAPITAL GROUP COMPANIES
CODE OF CONDUCT
(as of October 1, 1999)

All of us within the Capital organization are responsible for maintaining the
very highest ethical standards when conducting business. In keeping with these
standards, we must never allow our own interests to be placed ahead of our
shareholders' and clients' interests.

Over the years we have earned a reputation for the highest integrity.
Regardless of lesser standards that may be followed through business or
community custom, we must observe exemplary standards of honesty and integrity.

REPORTING VIOLATIONS

If you know of any violation of our Code of Conduct, you have a responsibility
to report it. Deviations from controls or procedures that safeguard the
company, including the assets of shareholders and clients, should also be
reported.

You can report confidentially to:

- - Your manager or department head

- - CGC Audit Committee:

Donnalisa Barnum
Larry P. Clemmensen
Roberta Conroy
Bill Hurt
Sonny Kamm
Mike Kerr
John McLaughlin
Bob O'Donnell
Tom Rowland
John Smet
Mark Smith
Wally Stern
Antonio Vegezzi
Shaw Wagener
Kelly Webb

- - Mike Downer or any other lawyer in the CGC Legal Group

- - Don Wolfe of Deloitte & Touche LLP (CGC's auditors)

CONFLICTS OF INTEREST

A conflict of interest occurs when the private interests of associates
interfere or could potentially interfere with their responsibilities at work.
Associates must not place themselves or the company in a position of actual or
potential conflict. Associates may not accept gifts worth more than $100,
excessive business entertainment, loans, or anything else involving personal
gain from those who conduct business with the company. In addition, a business
entertainment event exceeding $200 in value should not be accepted unless the
associate receives permission from the Gifts Policy Committee.

REPORTING -- Although the limitations on accepting gifts applies to ALL
associates as described above, some associates will be asked to fill out
quarterly reports. If you receive a reporting form, you must report any gift
exceeding $50 (although it is recommended that you report ALL gifts received)
and business entertainment in which an event exceeds $75.

GIFTS POLICY COMMITTEE

The Gifts Policy Committee oversees administration of and compliance with the
Policy.

INSIDER TRADING

Antifraud provisions of the federal securities laws generally prohibit persons
while in possession of material nonpublic information from trading on or
communicating the information to others. Sanctions for violations can include
civil injunctions, permanent bars from the securities industry, civil penalties
up to three times the profits made or losses avoided, criminal fines and jail
sentences.

While investment research analysts are most likely to come in contact with
material nonpublic information, the rules (and sanctions) in this area apply to
all CGC associates and extend to activities both within and outside each
associate's duties. All associates must read the Insider Trading Policy in the
Appendix of the CGC Handbook for Associates.

PERSONAL INVESTING POLICY

As an associate of the Capital Group companies, you may have access to
confidential information. This places you in a position of special trust.

You are associated with a group of companies that is responsible for the
management of many billions of dollars belonging to mutual fund shareholders
and other clients. The law, ethics and our own policy place a heavy burden on
all of us to ensure that the highest standards of honesty and integrity are
maintained at all times.

There are several rules that must be followed to avoid possible conflicts of
interest in personal securities transactions.

ALL ASSOCIATES

Information regarding proposed or partially completed plans by CGC companies to
buy or sell specific securities must not be divulged to outsiders.

Favors or preferential treatment from stockbrokers may not be accepted.

Associates may not subscribe to any initial public offering or any other
securities offering that is subject to allocation (so-called "hot issues").
Generally, this prohibition applies to spouses of associates and any family
member residing in the same household. However, an associate may request that
the Personal Investing Policy Committee consider granting an exception.

COVERED PERSONS

Associates who have access to investment information in connection with their
regular duties are generally considered "covered persons." If you receive a
quarterly personal securities transactions report form, you are a covered
person. You should take the time to review this memo as ongoing interpretations
of the policy will be explained therein.

Covered persons must conduct their personal securities transactions in such a
way that they do not conflict with the interests of the funds and client
accounts. This policy also includes securities transactions of family members
living in the covered person's household and any trust or custodianship for
which the associate is trustee or custodian. A conflict may occur if you, a
family member in the same household, a trust or custodianship for which you are
trustee or custodian have a transaction in a security when the funds or client
accounts are considering or concluding a transaction in the same security.

Additional rules apply to "investment personnel" including portfolio
counselors/managers, research analysts, traders, and investment administration
personnel (see below).

PRE-CLEARANCE OF SECURITIES TRANSACTIONS

Before buying or selling securities, covered persons should find out if the
purchase or sale of a particular security would involve a conflict of interest.
This involves checking with the CGC Legal Group based in LAO by calling [phone
number]. (You will generally receive a response within one business day.)
Unless a shorter period is specified, clearance is good for two trading days
(including the day you check). If you have not executed your transaction
within this period, you must again pre-clear your transaction.

Covered persons must promptly submit quarterly reports of certain transactions.
Transactions of securities (including fixed-income securities) or options (see
below) must be pre-cleared as described above and reported except for: gifts
or bequests of securities (although pre-clearance and reporting are required if
these securities are later sold); open-end investment companies (mutual funds);
shares of CGC stock; money market instruments with maturities of one year or
less; direct obligations of the U.S. Government, bankers' acceptances, CDs or
other commercial paper; commodities; and options or futures on broad-based
indices. Covered persons must also report transactions made by family members
in their household and by those for which they are a trustee or custodian.
Reporting forms will be supplied at the appropriate times.

In addition, the following transactions must be reported but need not have been
pre-cleared: transactions in debt instruments rated "A" or above by at least
one national rating service; sales pursuant to tender offers; and dividend
reinvestment plan purchases (provided the purchase pursuant to such plan is
made with dividend proceeds only).

BROKERAGE ACCOUNTS

Covered persons should inform their stockbrokers that they are employed by an
investment adviser, trust company or affiliate of either. The broker is
subject to certain rules designed to prevent favoritism toward such accounts.
Associates may not accept negotiated commission rates which they believe may be
more favorable than the broker grants to accounts with similar characteristics.
In addition, covered persons must direct their brokers to send duplicate
confirmations and copies of all periodic statements on a timely basis to The
Legal Group of The Capital Group Companies, Inc., [P.O. Box address]. ALL
DOCUMENTS RECEIVED IN THIS POST OFFICE BOX ARE KEPT STRICTLY CONFIDENTIAL.

[If extraneous information is included on an associate's statements (E.G.,
checking account information or other information that is not subject to the
policy), the associate might want to establish a separate account solely for
transactions subject to the policy.]

ANNUAL RECERTIFICATION

All access persons will be required to certify annually that they have read and
understood the Personal Investing Policy and recognize that they are subject
thereto.

ADDITIONAL RULES FOR INVESTMENT PERSONNEL

DISCLOSURE OF OWNERSHIP OF RECOMMENDED SECURITIES -- Any associate who is in a
position to recommend the purchase or sale of securities by the fund or client
accounts must not recommend securities that s/he personally owns without FIRST
disclosing ownership. Typically, a complete disclosure of holdings (such as in
the annual disclosure of personal securities) satisfies this requirement.

BLACKOUT PERIOD -- Portfolio counselors/managers and research analysts may not
buy or sell a security within at least seven calendar days before and after A
FUND OR CLIENT ACCOUNT THAT HIS OR HER COMPANY MANAGES transacts in that
security. Profits resulting from transactions occurring within this time
period are subject to special review and may be subject to disgorgement.

BAN ON SHORT-TERM TRADING PROFITS -- Investment personnel are prohibited from
profiting from the purchase and sale or sale and purchase of the same (or
equivalent) securities within 60 days. THIS RESTRICTION APPLIES TO THE
PURCHASE OF AN OPTION AND THE EXERCISE OF THE OPTION WITHIN 60 DAYS.

ANNUAL DISCLOSURE OF PERSONAL SECURITIES HOLDINGS - Investment personnel will
be required to disclose all personal securities holdings upon commencement of
employment and thereafter on an annual basis. Reporting forms will be supplied
for this purpose.

SERVICE AS A DIRECTOR -- Investment personnel must obtain prior authorization
of the investment committee of the appropriate management company BEFORE
SERVING ON THE BOARD OF DIRECTORS OF PUBLICLY TRADED COMPANIES.

PERSONAL INVESTING POLICY COMMITTEE
Any questions or hardships that result from these policies or requests for
exceptions should be referred to CGC's Personal Investing Policy Committee.

<PAGE>
THE CAPITAL GROUP COMPANIES
CODE OF CONDUCT
(as of January 1, 1998)

REPORTING VIOLATIONS

You can report confidentially to:

- - Your manager or department head

- - CGC Audit Committee:

Donnalisa Barnum
Larry P. Clemmensen
Roberta Conroy
Bill Hurt
Sonny Kamm
Mike Kerr
Bob O'Donnell
John Smet
Mark Smith
Wally Stern
Kelly Webb
Shaw Wagener

- - Mike Downer or any other lawyer in the CGC Legal Group

- - Don Wolfe of Deloitte & Touche LLP (CGC's auditors)

CONFLICTS OF INTEREST

GIFTS POLICY COMMITTEE

The Gifts Policy Committee oversees administration of and compliance with the
Policy. If you have any questions about the Policy, you should contact Ken
Gorvetzian, Kristine Nishiyama, or Michele Yang.

INSIDER TRADING

PERSONAL INVESTING POLICY

As an associate of the Capital Group companies, you may have access to
confidential information. This places you in a position of special trust.

There are several rules that must be followed to avoid possible conflicts of
interest in personal securities transactions.

ALL ASSOCIATES

Information regarding proposed or partially completed plans by CGC companies to
buy or sell specific securities must not be divulged to outsiders.

Favors or preferential treatment from stockbrokers may not be accepted.

COVERED PERSONS

Associates who have access to investment information in connection with their
regular duties are generally considered "covered persons." If you receive a
quarterly personal securities transactions report form, you are a covered
person. A MEMO CONTAINING MORE IN-DEPTH DETAILS OF THE PERSONAL INVESTING
POLICY IS ATTACHED TO EACH QUARTERLY REPORTING FORM. You should take the time
to review this memo as ongoing interpretations of the policy will be explained
therein.

Additional rules apply to "investment personnel" including portfolio
counselors/managers, research analysts, traders, and investment administration
personnel (see below).

PRE-CLEARANCE OF SECURITIES TRANSACTIONS

BROKERAGE ACCOUNTS

ANNUAL RECERTIFICATION

All access persons will be required to certify annually that they have read and
understood the Personal Investing Policy and recognize that they are subject
thereto.

ADDITIONAL RULES FOR INVESTMENT PERSONNEL

PERSONAL INVESTING POLICY COMMITTEE
Any questions or hardships that result from these policies or requests for
exceptions should be referred to CGC's Personal Investing Policy Committee (by
calling Cheryl Ruff or Michele Yang).