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[The American Funds Group(r)]
American High-Income Trust
Semi-Annual Report
for the six months ended March 31, 2000
[close-up of Italian lire]
American High-Income Trust(sm) seeks a high level of current income and,
secondarily, capital appreciation through a diversified, carefully supervised
portfolio consisting primarily of lower rated, higher risk corporate bonds.
American High-Income Trust is one of the 29 mutual funds in The American Funds
Group,(r) the nation's third-largest mutual fund family. For nearly seven
decades, Capital Research and Management Company, the American Funds adviser,
has invested with a long-term focus based on thorough research and attention to
risk.
Results at a Glance
Class A Share Total Returns(1)
(for periods ended March 31, 2000)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Lifetime (2) 1 Year 6 Months
Annualized
American High-Income Trust +10.03% +3.13% +3.07%
Credit Suisse First Boston High
Yield Index +9.56 +0.30 +0.77
Salomon Smith Barney Broad
Investment-Grade +8.00 +1.81 +2.03
(BIG) Bond Index
Lipper High Current Yield
Bond Funds Index +8.66 +0.00 +1.13
</TABLE>
(1)Change in value of investment with dividends and capital gain distributions
reinvested.
(2)Since February 19, 1988.
<TABLE>
<CAPTION>
<S> <C>
30-Day Rates (as of April 30, 2000) Class A
Shares
Yield based on Securities and Exchange
Commission formula 9.64%
Distribution rate based on offering price 9.22
Distribution rate based on net asset value 9.58
</TABLE>
The SEC yield reflects income the fund expects to earn based on its current
portfolio of securities, while the distribution rate is based solely on the
fund's past dividends. Accordingly, the fund's SEC yield and distribution rate
may differ.
Here are the fund's average annual compound returns on a $1,000 investment with
all distributions reinvested for periods ended March 31, 2000:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
10 Years 5 Years 1 Year
Class A shares 0.1049 0.0867 -0.73%
reflecting 3.75% maximum sales
charge
</TABLE>
Results for Class B shares are not shown because of the brief time between
their introduction on March 15 and the end of the fund's fiscal period.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS. SHARE
PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY. INVESTING FOR SHORT PERIODS
MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY
DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER ENTITY.
Please see the back cover for important information about Class A and Class B
shares.
Fellow Shareholders:
American High-Income Trust held its ground well during the first six months of
fiscal 2000, a period marked by rising interest rates and financial market
volatility.
Shareholders who reinvested their dividends of 66 cents a share had a total
return of 3.1% for the six months ended March 31. The fund's income return of
5.0% (10.0% annualized) was partially offset by a modest decline in share
price. The fund outpaced the overall high-yield market as measured by the
unmanaged Credit Suisse First Boston High Yield Index, which rose 0.8%. It also
outpaced the Lipper High Current Yield Bond Funds Index, which rose 1.1%, and
the Salomon Smith Barney Broad Investment-Grade Index, an unmanaged measure of
higher grade bonds, which rose 2.0%.
Investors who took their distributions in cash had an income return of 4.9% and
saw the value of their holdings decline 1.8%.
Although inflation has remained subdued, the Federal Reserve Board is still
concerned about the economy's strength and the potential for accelerating
inflation. In an effort to forestall rising prices, the Fed has raised the
federal funds rate -the rate banks charge each other on overnight loans - five
times since June 1999, including three times during the fiscal period. The
higher federal funds rate has pushed all interest rates up and resulted in
lower bond prices.
High-yield bond prices reflect not only prevailing interest rates but also the
health of the issuing company. The combination of higher interest rates and
pressure on profits in some industries pushed the prices of many corporate
bonds lower.
[Begin sidebar]
Fund results in this report were calculated for Class A shares at net asset
value (without a sales charge) unless otherwise indicated.
High-yield bonds are subject to greater fluctuations in value and risk of loss
of income and principal. Investing outside the United States entails additional
risks, such as currency fluctuations, as more fully described in the
prospectus.
[End sidebar]
One consistent benefit of investing in bonds, especially high-yield bonds, is
that the income they produce can cushion the impact of lower prices. This was
evident during the first half of this fiscal year. As noted earlier, the fund's
high level of income helped it outpace the high-yield market, the
investment-grade market and the majority of its peers as tracked by Lipper Inc.
The fund benefited from holdings in some of its largest sectors, including
telecommunications and media, which fared better than many other segments of
the high-yield market. The fund increased its holdings in wireless
telecommunications, to 23.6% of assets from 19.7%. Other industry allocations
remained essentially unchanged.
Lower bond prices have created more attractive opportunities for investors.
Uncovering these opportunities requires research and a commitment to the long
term, which are the hallmarks of American High-Income Trust's investment
philosophy. The fund's investment professionals thoroughly research each issuer
before investing. The fund is managed with a view to the long term, as are the
other 28 funds in The American Funds Group.
As always, we will continue to monitor all factors that influence the
high-yield bond market, including interest rates, inflation expectations and
corporate profits. We look forward to reporting to you again in six months.
Cordially,
/s/ Paul G. Haaga, Jr. /s/ David C. Barclay
Paul G. Haaga, Jr. David C. Barclay
Chairman of the Board President
May 15, 2000
[begin pie chart]
<TABLE>
<S> <C>
U.S. Corporate Bonds 70%
Non-U.S. Corporate Bonds 21%
Non-U.S. Government Bonds 2%
Stocks 4%
U.S. Treasuries 1%
Cash & Equivalents 2%
</TABLE>
[end pie chart]
<TABLE>
American High-Income Trust
Investment Portfolio, March 31, 2000
Unaudited
<S> <C> <C> <C>
Shares or
Principal Market Percent
Amount Value of Net
Bonds, Notes & Equity Securities (000) (000) Assets
-------------------------------------------- ---------- ---------- -------
Wireless Telecommunication Services - 23.23%
Omnipoint Corp.:
14.00% 2003(1),(2),(3) $33,701 $35,319
11.625% 2006 27,000 28,890
11.625% 2006 9,000 9,630
11.50% 2009(2) 13,050 13,964
7.00% convertible preferred 85 shares 17,000
VoiceStream Wireless Corp.:
0%/11.875% 2009(2),(4) $58,775 $35,265
10.375% 2009(2) 8,750 8,706 5.38
Nextel Communications, Inc.:
0%/9.75% 2007(4) 15,250 10,446
0%/10.65% 2007(4) 21,500 15,695
0%/9.95% 2008(4) 43,625 29,447
12.00% 2008 3,500 3,798
Series D, 13.00% exchangeable preferred,
redeemable 2009(1),(5) 17 shares 18,342
Series E, 11.25% exchangeable preferred,
redeemable 2010(1),(5) 34 shares 32,571
Nextel International, Inc. 0%/12.125% 2008(4) $29,250 18,135
McCaw International, Ltd.
(owned by NEXTEL Communications, Inc.)
0%/13.00% 2007(4) 18,125 13,050 5.11
Crown Castle International Corp.:
0%/10.625% 2007(4) 21,250 14,663
0%/10.375% 2011(4) 21,500 12,309
0%/11.25% 2011(4) 13,500 7,965
12.75% Senior Exchangeable Preferred 2010(1),(5) 21 shares 21,161 2.03
Clearnet Communications Inc.:
0%/11.75% 2007(4) C$33,701 30,618
0%/10.40% 2008(4) 50,325 21,496
0%/10.125% 2009(4) $1,600 904 1.92
PageMart Wireless, Inc.:
0%/15.00% 2005(4) 12,750 13,324
0%/11.25% 2008(4) 48,260 25,095 1.39
Leap Wireless International, Inc.:
0%/14.5% 2010(2),(4) 61,250 30,931
12.50% 2010(2) 3,500 3,500 1.24
Esat Telecom Group PLC:
0%/12.50% 2007(4) 20,250 18,225
11.875% 2008 12,000 13,920 1.16
Nextel Partners, Inc.:
0%/14.00% 2009(4) 32,550 20,832
11.0% 2010(2) 10,750 10,320 1.13
Dobson Communications Corp.:
12.25% exchangeable preferred,
redeemable 2008(1),(5) 17 shares 16,611
12.25% exchangeable preferred,
redeemable 2008(1),(5) 13 shares 12,367 1.04
SpectraSite Holdings, Inc.:
Series B, 0%/12.00% 2008(4) $8,500 5,334
Series B, 11.25% 2009 22,875 12,467
10.75% 2010(2) 7,600 7,315
12.875% 2010(2) 3,500 1,733 .97
Centennial Cellular Corp. 10.75% 2008 25,525 25,014 .90
Comunicacion Celular SA 0%/14.125% 2005(2),(4) 16,000 10,720 .39
Cellco Finance NV:
12.75% 2005(2) 5,975 6,221
15.00% 2005 1,590 1,697 .29
SBA Communications Corp. 12.00% 2008 7,250 4,749 .17
Piltel International Holding Corp.
1.75% convertible 2006 5,875 2,996 .11
GLOBE TELECOM, Inc. 13.00% 2009(2) 1,650 1,823 .06
Occidente Y Caribe Celular SA 0%/14.00% 2004(4) 2,750 1,698 .06
Teletrac, Inc.:
10.00% 2000(3) 385 385
9.00% 2004(2),(3) 1,626 1,301 .06
Telesystem International Wireless Inc.
0%/13.25% 2007(4) 2,100 1,365 .05
Price Communications Wireless, Inc.,
Series B, 9.125% 2006 1,300 1,274 .05
Netia Holdings BV 0%/11.25% 2007(4) 1,000 698 .03
Nuevo Grupo Iusacell, SA de CV 14.25% 2006(2) 380 408 .02
---------- -------
651,697 23.56
---------- -------
Diversified Telecommunication Services - 11.28%
NEXTLINK Communications, Inc.:
12.50% 2006 1,750 1,803
9.625% 2007 13,000 11,895
9.00% 2008 3,500 3,133
0%/12.125% 2009(2),(4) 20,750 11,205
0%/12.25% 2009(4) 19,750 11,159
14.00% preferred 2009(1),(5) 37 shares 1,827 1.48
COLT Telecom Group PLC:
0%/12.00% 2006(4) $26,250 22,903
8.875% 2007 DM19,000 9,396
7.625% 2008 9,250 4,257 1.32
Time Warner Telecom Inc. 9.75% 2008 $36,645 35,912 1.30
Viatel, Inc.:
0%/12.50% 2008(4) 31,875 17,850
0%/12.40% 2008(4) DM21,500 6,737
11.15% 2008 2,500 1,163
11.25% 2008 $8,075 7,187
11.50% 2009 875 788 1.22
VersaTelecom International NV:
4.00% convertible 2005(2) E14,825 14,764
11.875% 2009 5,000 4,884
11.25% 2010(2) $6,750 6,270 .94
Allegiance Telecom, Inc.:
0%/11.75% 2008(4) 28,000 19,880
12.875% 2008 2,625 2,874 .82
PTC International Finance BV 0%/10.75% 2007(4) 19,100 13,561 .49
GT Group Telecom Inc. units 0%/13.25% 2010(2),(4) 22,525 12,839 .46
US Xchange, LLC 15.00% 2008 21,100 12,660 .46
KMC Telecom Holdings, Inc. 0%/12.50% 2008(4) 22,500 11,925 .43
Level 3 Communications, Inc.:
9.125% 2008 5,000 4,300
11.25% 2010(2) E6,250 5,776 .36
Maxcom Telecomunicaciones, SA de CV 13.75% 2007(2) $8,600 8,665 .32
Loral Orion Network Systems, Inc. 11.25% 2007 11,725 8,120 .29
MGC Communications, Inc. 13.0% 2010(2) 6,500 6,110 .22
IXC Communications, Inc.(5) 6 shares 5,995 .22
GST Equipment Funding, Inc. 13.25% 2007 $9,000 5,670 .21
Global TeleSystems Group, Inc. 9.875% 2005 6,000 5,100 .18
Qwest Communications International Inc.
0%/9.47% 2007(4) 6,000 5,046 .18
Hyperion Telecommunications, Inc.,
Series B, 13.00% 2003 5,000 4,600 .17
Teligent, Inc. 11.50% 2007 4,000 3,600 .13
IMPSAT Corp. 12.375% 2008 2,000 1,755 .06
CEI Citicorp Holdings SA 11.25% 2007(2) ARP500 480 .02
---------- -------
312,089 11.28
---------- -------
Diversified Media & Cable Television - 9.32%
Comcast UK Cable Partners Ltd. 0%/11.20% 2007(4) $28,000 26,600
Diamond Holdings PLC 9.125% 2008 5,000 4,775
NTL Inc.:
0%/12.75% 2005(4) 1,000 1,015
Series B, 10.00% 2007 5,750 5,606
0%/9.75% 2008(4) 12,500 7,938
0%/10.75% 2008(4) Pound17,750 18,615
11.50% 2008 $6,000 6,090 2.55
Charter Communications Holdings, LLC:
8.25% 2007 6,000 5,280
10.00% 2009(2) 6,000 5,775
0%/11.75% 2010(2),(4) 10,000 5,500
0%/9.92% 2011(4) 60,000 33,000 1.79
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
8.875% 2007 17,000 17,000
0%/9.75% 2007(4) 34,000 27,073 1.59
Adelphia Communications Corp.:
9.25% 2002 6,000 5,940
10.50% 2004 8,500 8,585
Series B, 13.00% 2009(5) 20 shares 2,160 .60
Globo Comunicacoes E Participacoes SA:
10.50% 2006(2) $10,280 9,175
10.625% 2008(2) 7,000 6,055 .55
Telemundo Holdings, Inc., Series A, 0%/11.50% 2008(4) 22,700 14,415 .52
Lenfest Communications, Inc.:
8.375% 2005 5,000 5,198
7.625% 2008 6,750 6,711 .43
TeleWest PLC 9.625% 2006 9,000 8,685 .32
Cablevision Industries Corp. 9.875% 2013 6,000 6,090 .22
Avalon Cable Holdings LLC 0%/11.875% 2008(4) 8,625 5,692 .21
Multicanal Participacoes SA, Series B, 12.625% 2004 4,900 5,084 .18
V2 Music Holdings PLC:
0%/14.00% 2008(2),(4) 10,905 2,944
0%/14.00% 2008(2),(4) Pound2,250 969 .14
TVN Entertainment Corp. 14.00% 2008(2) $11,750 3,525 .13
Century Communications Corp. 0% 2003 2,000 1,450 .05
Grupo Televisa, SA 0%/13.25% 2008(4) 1,000 987 .04
---------- -------
257,932 9.32
---------- -------
Leisure & Tourism - 7.88%
William Hill Finance PLC 10.625% 2008 Pound18,450 30,163 1.09
Boyd Gaming Corp.:
9.25% 2003 $21,500 21,070
9.50% 2007 7,860 7,231 1.02
Horseshoe Gaming, LLC, Series B, 9.375% 2007 1,690 1,614
Horseshoe Gaming Holding Corp.,
Series B, 8.625% 2009 26,000 23,725 .92
Premier Parks Inc.:
0%/10.00% 2008(4) 5,750 3,680
9.25% 2006 4,000 3,720
9.75% 2007 11,000 10,368
9.75% 2007 3,750 3,694 .78
Jupiters Ltd. 8.50% 2006 19,180 17,837 .64
KSL Recreation Group, Inc. 10.25% 2007 17,005 15,942 .58
International Game Technology:
7.875% 2004 11,250 10,463
8.375% 2009 4,000 3,620 .51
Harrah's Operating Co., Inc. 7.875% 2005 13,725 12,661 .46
Sun International Hotels Ltd.,
Sun International North America, Inc.:
8.625% 2007 3,750 3,300
9.00% 2007 9,000 8,100 .41
Florida Panthers Holdings, Inc. 9.875% 2009 11,000 9,900 .36
Carmike Cinemas, Inc., Series B, 9.375% 2009 12,625 8,080 .29
AMF Bowling Worldwide, Inc.:
10.875% 2006 5,750 2,357
0%/12.25% 2006(4) 11,293 3,049
0% convertible debentures 2018(2) 10,508 328 .21
CKE Restaurants, Inc. 9.125% 2009 7,500 5,250 .19
Friendly Ice Cream Corp. 10.50% 2007 7,375 5,162 .19
Mirage Resorts, Inc. 6.625% 2005 4,000 3,620 .13
Six Flags Entertainment Corp. 8.875% 2006 1,500 1,414 .05
Loews Cineplex Entertainment Corp. 8.875% 2008 2,000 1,310 .05
---------- -------
217,658 7.88
---------- -------
Broadcasting & Publishing - 6.71%
American Media Operations, Inc. 10.25% 2009 24,680 24,433 .88
Chancellor Media Corp. of Los Angeles:
8.125% 2007 9,500 9,357
Series B, 8.75% 2007 6,450 6,450
8.00% 2008 2,000 1,970
9.00% 2008 1,000 1,000
Katz Media Corp., Series B, 10.50% 2007 2,500 2,687
Capstar Broadcasting Partners, Inc., 12.00% 2009 2,514 2,834 .88
Ziff-Davis Inc. 8.50% 2008 16,500 17,738 .64
TransWestern Publishing Co. LLC 9.625% 2007 16,050 15,087 .55
Sun Media Corp.:
9.50% 2007 11,078 10,690
9.50% 2007 3,947 3,809 .52
Gray Communications Systems, Inc. 10.625% 2006 13,870 13,870 .50
Cumulus Media Inc.:
10.375% 2008 6,250 5,563
13.75% preferred 2009(1) 9 shares 7,761 .48
Young Broadcasting Inc.:
10.125% 2005 $8,615 8,227
Series B, 8.75% 2007 2,000 1,750
9.00% 01-15-06 3,250 2,893 .47
ACME Television, LLC, Series B, 0%/10.875% 2004(4) 3,250 2,893
ACME Intermediate Holdings, LLC,
Series B, 0%/12.00% 2005(4) 12,689 8,628 .42
Antenna TV SA 9.00% 2007 12,450 11,329 .41
Big City Radio, Inc. 0%/11.25% 2005(4) 14,000 8,715 .32
Muzak LLC 9.875% 2009 1,500 1,410
Muzak Holdings LLC 13.00% 2010 6,500 3,770 .18
Radio One, Inc. 7.00%/12.00% 2004(4) 4,750 5,053 .18
STC Broadcasting, Inc. 11.00% 2007 4,000 3,940 .14
RBS Participacoes SA 11.00% 2007(2) 4,500 3,859 .14
---------- -------
185,716 6.71
---------- -------
Banking & Financial Services - 4.90%
Advanta Corp.:
7.50% 2000 9,700 9,662
Series B, 7.00% 2001 5,635 5,306
Series D, 6.814% 2002 10,000 9,232
Series D, 6.98% 2002 2,000 1,855 .94
Fuji JGB Investment LLC,
Series A, 9.87% noncumulative preferred(2),(6) 25,500 25,372 .92
GS Escrow Corp. 7.125% 2005 17,000 15,433
Golden State Holdings, Inc. 7.00% 2003 4,500 4,213 .71
Sakura Capital Funding 7.06% (undated)(2),(6) 14,000 13,475 .49
Providian Financial Corp. 9.525% 2027(2) 15,000 12,579 .45
Chevy Chase Bank, FSB 9.25% 2008 2,000 1,780
Chevy Chase Preferred Capital Corp. 10.375% 214 shares 9,844 .42
Komercni Finance BV 9.00%/10.75% 2008(2) $9,950 9,651 .35
Superior Financial Corp. 8.65% 2003(2) 6,000 5,610 .20
BNP U.S. Funding LLC,
Series A, 7.738% noncumulative preferred(2),(6) 4,750 4,462 .16
BankUnited Capital Trust,
BankUnited Financial Corp., 10.25% 2026 4,500 3,780 .14
IBJ Preferred Capital Co. LLC,
Series A, 8.79% noncumulative preferred(2),(6) 3,500 3,299 .12
---------- -------
135,553 4.90
---------- -------
Forest Products & Paper - 4.21%
Container Corp. of America:
10.75% 2002 7,250 7,322
9.75% 2003 32,250 32,089
Series A, 11.25% 2004 5,500 5,569 1.63
Kappa Beheer BV:
0%/12.5% 2009(4) E26,250 16,276
10.625% 2009 18,750 18,763 1.27
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 $7,900 6,932
10.00% 2007 5,200 3,627 .38
Packaging Corp. of America, Series B, 9.625% 2009 9,250 9,019 .33
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002 5,000 4,113
10.75% 2007 2,925 2,099 .22
Advance Agro Capital BV 13.00% 2007 7,125 4,542 .16
Pacifica Papers Inc. 10.00% 2009 4,050 3,959 .14
Copamex Industrias, SA de CV, Series B, 11.375% 2004 2,010 1,955 .07
APP International Finance Co. BV 11.75% 2005 275 shares 240 .01
---------- -------
116,505 4.21
---------- -------
Manufacturing - 4.02%
Graham Packaging Co.:
8.75% 2008 $21,000 17,010
0%/10.75% 2009(4) 18,500 10,175 .98
Printpack, Inc.:
Series B, 9.875% 2004 5,750 5,578
10.625% 2006 18,930 18,362 .87
Federal-Mogul Corp.:
7.50% 2004 4,500 3,863
7.375% 2006 4,250 3,943
7.75% 2006 2,000 1,634
7.50% 2009 9,150 7,042 .60
First Pacific Capital Corp.
2.00% convertible debentures 2002 12,000 13,020 .47
Ingram Micro Inc. 0% convertible debentures 2018 22,500 7,819 .28
Anchor Glass Container Corp. 11.25% 2005 10,000 7,000 .25
Tekni-Plex, Inc. 9.25% 2008 5,995 5,635 .20
American Standard Inc. 8.25% 2009(2) 4,500 4,230 .15
Hayes Lemmerz International, Inc.,
Series B, 8.25% 2008 2,450 2,033 .07
Westinghouse Air Brake Co., Series B2, 9.375% 2005 1,500 1,474 .05
Impress Metal Packaging Holdings BV 9.875% 2007 DM2,050 974 .04
Key Plastics Holdings, Inc. 10.25% 2007 $9,650 724 .03
Reliance Industries Ltd. 10.50% 2046(2) 500 509 .02
BREED Technologies, Inc. 9.25% 2008(7) 30,000 300 .01
---------- -------
111,325 4.02
---------- -------
Energy Related - 3.99%
Cross Timbers Oil Co.:
Series B, 9.25% 2007 10,775 10,128
8.75% 2009 17,620 16,166 .95
Clark Refining & Marketing, Inc.:
8.375% 2007 4,400 3,322
8.875% 2007 4,500 2,835
8.625% 2008 6,920 5,225
Clark Oil & Refining Corp. 9.50% 2004 2,000 1,680
Clark USA, Inc.:
10.875% 2005 12,000 6,600
11.50% senior exchangeable preferred 2009(1),(5) 19 shares 4,285 .87
Pogo Producing Co.:
8.75% 2007 $16,500 15,263
10.375% 2009 6,500 6,565 .79
Petrozuata Finance, Inc.:
Series A, 7.63% 2009(2) 3,500 2,928
Series B, 8.22% 2017(2) 15,000 11,738 .53
HS Resources, Inc. 9.25% 2006 9,350 8,976 .32
TNP Enterprises, Inc. 10.25% 2010(2) 6,250 6,250 .23
AES Corp. 9.50% 2009 4,000 3,895 .14
McDermott Inc. 9.375% 2002 3,275 2,882 .10
Newfield Exploration Co., Series B, 7.45% 2007 1,750 1,634 .06
---------- -------
110,372 3.99
---------- -------
Technology & Electronics - 3.66%
Advanced Micro Devices, Inc.:
11.00% 2003 13,000 12,870
6.00% convertible subordinated notes 2005 8,000 13,120 .94
Zilog, Inc. 9.50% 2005 22,150 19,714 .71
Fairchild Semiconductor Corp.:
10.125% 2007 6,150 5,965
10.375% 2007 12,900 12,674 .67
Micron Technology, Inc. 6.50% 2005(2) 20,000 16,600 .60
Earthwatch Inc.:
0%/12.50% 2005(2),(3),(4) 8,640 5,949
Series B, 7.00% convertible
preferred 2009(1),(3),(5) 725 shares 2,500
Series C, 8.50% convertible preferred
2009(1),(2),(3),(5) 343 shares 590 .33
Flextronics International Ltd. 8.75% 2007 $8,750 8,225 .30
Samsung Electronics Co., Ltd. 7.45% 2002(2) 3,000 2,939 .11
---------- -------
101,146 3.66
---------- -------
Miscellaneous Service Companies - 3.56%
Allied Waste North America, Inc.:
7.625% 2006 500 407
Series B, 10.00% 2009 43,200 32,400 1.19
USA Waste Services, Inc.:
4.00% 2002 12,000 10,665
6.50% 2002 2,000 1,846
WMX Technologies, Inc.:
6.375% 2003 3,500 3,143
7.10% 2026 3,500 3,231
Waste Management, Inc.:
7.70% 2002 5,700 5,437
6.875% 2009 1,500 1,253 .92
KinderCare Learning Centers, Inc.,
Series B, 9.50% 2009 - NEW 11,500 10,465 .38
Polestar Corp. PLC 10.50% 2008 Pound6,125 9,508 .34
Iron Mountain Inc.:
8.75% 2009 $5,370 4,779
8.750% 2009 3,000 2,925 .28
Stericycle, Inc., Series B, 12.375% 2009 5,250 5,381 .19
Protection One Alarm Monitoring, Inc.
13.625% 2005(6) 5,166 3,668 .13
Concentra Operating Corp., Series A, 13.00% 2009(2) 3,000 2,400 .09
Safety-Kleen Services, Inc. 9.25% 2008 7,000 980 .04
---------- -------
98,488 3.56
---------- -------
Consumer Products - 2.03%
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 9,750 9,506
8.75% 2003 8,150 7,946 .63
Delta Beverage Group, Inc. 9.75% 2003 15,735 14,948 .54
Salton/Maxim Housewares, Inc. 10.75% 2005 8,425 8,446 .31
Fage Dairy Industry SA 9.00% 2007 9,250 7,816 .28
Home Products International, Inc. 9.625% 2008 3,250 2,957 .11
New World Pasta Co. 9.25% 2009 2,750 2,228 .08
DGS International Finance Co. BV 10.00% 2007(2) 4,050 1,387 .05
WestPoint Stevens Inc. 7.875% 2005 1,000 810 .03
---------- -------
56,044 2.03
---------- -------
Merchandising - 1.28%
Kmart Corp. 9.78% 2020 10,500 10,760
DR Securitized Lease Trust,
pass-through certificates,
Series 1994 K-2, 9.35% 2019(8) 9,855 8,951 .71
Boyds Collection, Ltd.,Series B, 9.00% 2008 8,803 7,747 .28
Sunglass Hut International, Inc.
5.25% convertible debentures 2003 5,500 4,235 .16
Fred Meyer, Inc.:
7.375% 2005 1,000 981
7.45% 2008 1,000 961 .07
J.C. Penny Co., Inc. 9.75% 2021 2,000 1,760 .06
---------- -------
35,395 1.28
---------- -------
Health & Personal Care - 1.13%
Paracelsus Healthcare Corp. 10.00% 2006(7) 35,825 16,121 .58
Columbia/HCA Healthcare Corp. 6.91% 2005 9,750 8,799 .32
Tenet Healthcare Corp. 8.00% 2005 3,750 3,534 .13
Integrated Health Services, Inc.:
5.75% convertible debentures 2001(7) 11,000 1
10.25% 2006(6),(7) 11,250 225
Series A, 9.50% 2007(7) 37,500 750
Series A, 9.25% 2008(7) 46,250 925 .07
Sun Healthcare Group, Inc.:
Series B, 9.50% 2007(7) 24,875 498
9.375% 2008(2),(7) 19,110 382 .03
Mariner Health Group, Inc. 9.50% 2006(7) 13,625 136 .00
---------- -------
31,371 1.13
---------- -------
Transportation - .93%
Teekay Shipping Corp. 8.32% 2008 14,500 13,195 .48
Eletson Holdings Inc. 9.25% 2003 7,860 7,113 .26
USAir, Inc., pass-through trust,
Series 1993-A3, 10.375% 2013(8) 3,150 2,678 .10
Gearbulk Holding Ltd. 11.25% 2004 2,000 2,045 .07
International Shipholding Corp.,
Series B, 7.75% 2007 500 440 .02
Overseas Shipholding Group, Inc. 8.75% 2013 125 113 .00
---------- -------
25,584 .93
---------- -------
Metals & Materials - .45%
Doe Run Resources Corp., Series B, 11.25% 2005 9,500 5,225 .19
Kaiser Aluminum & Chemical Corp. 12.75% 2003 4,500 4,162 .15
Freeport-McMoRan Copper & Gold Inc.:
7.50% 2006 100 73
7.20% 2026 3,825 2,902 .11
---------- -------
12,362 .45
---------- -------
Other - .54%
M.D.C. Holdings, Inc. 8.375% 2008 9,250 7,724 .28
Swire Pacific Offshore Financing Ltd.
9.33% cumulative guaranteed
perpetual capital securities(2) 352 7,121 .26
---------- -------
14,845 .54
---------- -------
Private Issue Collateralized Mortgage
Obligations/Asset-Backed Sercurities - .83%
Ripasa Export Receivables Master Trust,
Series 1997-C1, 9.54% 2002(2),(6) 10,000 8,840 .32
Gramercy Place Insurance Ltd.,
Series 1998-A, Class C-2, 8.95% 2002(2) 7,834 7,760 .28
Chase Commercial Mortgage Securities Corp.,
Series 1998-2, Class E, 6.39% 2030(8) 5,000 4,296 .15
GMAC Commercial Mortgage Securities, Inc.,
Series 1997-C2, Class E, 7.624% 2011 2,500 2,195 .08
---------- -------
23,091 .83
---------- -------
U.S. Treasury Obligations - .96%
7.50% November 2001 20,000 20,294
7.50% February 2005 6,000 6,274 .96
---------- -------
26,568 .96
---------- -------
Governments (Excluding U.S.) - 1.87%
United Mexican States Government:
0% 2003(3) 768 0
Eurobonds:
Global, 11.375% 2016 7,695 9,138
Series A, units 6.932% 2019(6) 500 494
Global, 11.50% 2026 2,625 3,269 .47
Panama (Republic of):
Interest Reduction Bond 4.25% 2014(2),(6) 12,400 9,983
Past Due Interest Eurobond 7.062% 2016(6) 547 464
8.875% 2027 2,000 1,762 .44
Argentina (Republic of):
Series E, 0% 2003 4,500 3,206
Eurobonds, Series L, 6.812% 2005(6) 880 825
11.75% 2007(2) ARP1,380 1,301
11.75% 2009 $270 267
11.375% 2017 2,750 2,681
12.00% 2020 1,425 1,440 .35
Brazil (Federal Republic of), Bearer 8.00% 2014(1) 9,053 6,812 .25
Turkey (Republic of) 12.375% 2009 3,675 3,951 .14
Venezuela (Republic of):
Eurobond 7.00% 2007(6) 1,524 1,230
Front Loaded Interest Reduction Bond,
Series A, 6.875% 2007(6) 667 530
9.25% 2027 510 339 .08
South Africa (Republic of) 13.00% 2010 13,600 1,961 .07
Bulgaria (Republic of) Front Loaded
Interest Reduction Bond, 2.75% 2012(6) 1,770 1,272 .04
Philippines (Republic of) 9.875% 2019 500 453 .02
Mendoza (Province of) 10.00% 2007(2) 500 369 .01
---------- -------
51,747 1.87
---------- -------
Number of
Shares
Common Stocks & Warrants - 3.67%
VoiceStream Wireless Corp.(5) 93,990 12,107 .44
Omnipoint Corp.(2),(5) 50,210 5,738 .21
Price Communications Corp. (5) 760,382 17,489 .63
Global TeleSystems Group, Inc.(5) 750,000 15,375 .56
Nortel Inversora SA, preferred,
Class A (ADR) (Argentina)(2),(3) 822,224 10,746 .39
Cross Timbers Oil Co. 550,000 7,184 .26
Boyd Collection, Ltd.(5) 1,030,000 6,244 .23
ACME Communications, Inc.(5) 213,145 4,876 .18
Felcor Lodging Trust Inc. 225,000 3,980 .14
Clear Channel Communications, Inc.(5) 51,012 3,523 .13
Infinity Broadcasting Corp.(5) 106,800 3,458 .12
Viatel, Inc. (5) 58,503 2,936 .10
Esat Holdings Ltd., warrants,
expire 2007 (Ireland)(2),(3),(5) 11,250 2,160 .08
Radio One, Inc., Class A(5) 22,000 1,466 .05
Cumulus Media Inc., Class A(5) 100,000 1,438 .05
MCI WorlCom, Inc. (5) 31,500 1,427 .05
NTL Inc., warrants, expire 2008(2),(3),(5) 6,412 762 .03
Allegiance Telecom, Inc.,
warrants, expire 2008(2),(3),(5) 5,000 436 .01
Teletrac Holdings, Inc.
warrants, expire 2004(3),(5) 384,986 38
Teletrac, Inc.(2),(3),(5) 1,045,551 157 .01
KMC Telecom Holdings Inc.,
warrants, expire 2008(2),(5) 22,500 56 .00
McCaw International, Ltd.
warrants, expire 2007 (2),(3),(5) 8,500 21 .00
Protection One Alarm Monitoring, Inc.,
warrants, expire 2005(2),(3),(5) 30,400 8 .00
Globalstar Telecommunications Ltd.,
warrants, expire 2004(5) 2,000 6 .00
Comunicacion Celular SA, Class B,
warrants, expire 2003 (Colombia)(2),(3),(5) 15,000 2 .00
V2 Music Holdings PLC (United Kingdom):
Warrants, expire 2000(2),(3),(5) Pound2,250 0 .00
Warrants, expire 2008(2),(3),(5) $10,905 0 .00
Tultex Corp.:
Warrants, expire 2007(3),(5) 81,220 0 .00
Warrants, expire 2007(3),(5) 40,610 0 .00
TVN Entertainment Corp.
warrants, expires 2008(2),(3),(5) 11,750 0 .00
---------- -------
Principal 101,633 3.67
Amount ---------- -------
(000)
Miscellaneous
Investment securities in initial
period of acquisition 17,500 12,863 .46
---------- -------
Total Bonds, Notes & Equity Securities
(cost: $2,958,675,000) 2,689,984 97.24
---------- -------
Short-Term Securities - .90%
IBM Credit Corp. 5.81% due 4/18/00 25,000 24,927 .90
---------- -------
Total Short-Term Securities (cost: $24,927,000) 24,927 .90
---------- -------
Total Investment Securities (cost: $2,983,602,000) 2,714,911 98.14
Excess of cash and receivables over payables 51,313 1.86
---------- -------
Net Assets $2,766,224 100.00
========= =======
(1)Payment in kind. The issuer has the option of
paying additional securities in lieu of cash.
(2)Purchased in a private placement transaction;
resale may be limited to qualified institutional
buyers; resale to the public may require registration.
(3)Valued under procedures established by the Board
of Trustees.
(4)Step bond; coupon rate will increase at a later date.
(5)Non-income-producing security.
(6)Coupon rate may change periodically.
(7)Company not making interest payments, bankruptcy
proceedings pending.
(8)Pass-through security backed by a pool of mortgages
or other loans on which principal payments are
periodically made. Therefore, the effective maturity
is shorter than the stated maturity.
See Notes to Financial Statements
</TABLE>
<TABLE>
American High-Income Trust
Financial Statements
Statement of Assets and Liabilities
at March 31, 2000
(Unaudited)
<S> <C> <C>
(dollars in
thousands)
Assets:
Investment securities at market
(Cost: $2,983,602) $2,714,911
Cash 3,793
Receivables for--
Sales of investments $11,495
Sales of fund's shares 6,069
Forward currency contracts-net 2,302
Dividends and accrued interest 50,649
Other 3 70,518
---------- ----------
2,789,222
Liabilities:
Payables for--
Purchases of investments 12,936
Repurchases of fund's shares 6,686
Forward currency contracts-net 102
Dividends on fund's shares 1,457
Management services 1,095
Accrued expenses 722 22,998
---------- ----------
Net Assets at March 31, 2000-- $2,766,224
==========
Class A shares of beneficial interest issued and
outstanding (unlimited shares authorized)
Net Assets $2,763,854
Shares outstanding 208,144,178
net asset value per share $13.28
Class A shares of beneficial interest issued and
outstanding (unlimited shares authorized)
Net Assets $ 2,370
Shares outstanding 178,479
net asset value per share $13.28
Statement of Operations (dollars in
for the six months ended March 31, 2000 thousands)
Investment Income:
Income:
Interest $129,506
Dividends 3,283 $132,789
----------
Expenses:
Management services fee 6,289
Distribution expenses- Class A 3,444
Distribution expenses- Class B 1
Transfer agent fee- Class A 1,067
Transfer agent fee- Class B -
Reports to shareholders 134
Registration statement and prospectus 223
Postage, stationery and supplies 313
Directors' fees 13
Auditing and legal fees 57
Custodian fee 43
Taxes other than federal income tax 62
Other expenses 16 11,662
---------- ----------
Net investment income 121,127
----------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 14,528
Net change in unrealized (depreciation)
appreciation on:
Investments (54,382)
Open forward currency contracts 3,863
----------
Net unrealized depreciation (50,519)
----------
Net realized gain and
unrealized depreciation
on investments (35,991)
----------
Net Increase in Net Assets Resulting
from Operations $85,136
==========
(dollars in
State of Changes in Net Assets thousands)
Six
months Year
ended ended
March 31, September
2000* 30, 1999
---------- ----------
Operations:
Net investment income $121,127 $246,356
Net realized gain (loss) on investments 14,528 (23,484)
Net unrealized depreciation
on investments (50,519) (27,296)
---------- ----------
Net increase in net assets
resulting from operations 85,136 195,576
---------- ----------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income:
Class A (136,423) (244,894)
Class B (3) -
Distributions from net realized gains on investments
Class A - (8,119)
Class B - -
---------- ----------
Total Dividends and Distributions (136,426) (253,013)
---------- ----------
Capital Share Transactions:
Proceeds from shares sold 397,701 1,060,634
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 95,088 178,581
Cost of shares repurchased (452,664) (764,282)
---------- ----------
Net increase in net assets resulting from 40,125 474,933
capital share transactions ---------- ----------
Total Increase in Net Assets (11,165) 417,496
Net Assets:
Beginning of period 2,777,389 2,359,893
---------- ----------
End of period (including
undistributed net investment
income: $2,993 and $18,569
respectively) $2,766,224 $2,777,389
========== ==========
See Notes to Financial Statements
</TABLE>
American High-Income Trust
Notes to Financial Statements
Unaudited
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - American High-Income Trust, Inc. (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 carefully supervised portfolio consisting primarily of
lower rated, higher risk corporate bonds.
The fund offers Class A and Class B shares. Class A shares are sold with an
initial sales charge of up to 3.75%. Class B shares are sold with a contingent
deferred sales charge, which declines from 5% to zero depending on the length
of time the shares are held, and include a higher distribution fee than Class A
shares. Class B shares are automatically converted to Class A shares eight
years after the date of purchase. Holders of both classes of shares have equal
pro rata rights to assets and identical voting, dividend, liquidation and other
rights, except that each class bears different distribution and transfer agent
expenses, and each class shall have exclusive rights to vote on matters
affecting only their class.
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 - 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. Dividend income is recognized on the
ex-dividend date, and 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 and distributions paid
to shareholders are recorded on the ex-dividend date.
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 manage 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.
COMMON EXPENSES - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are prorated between the classes based
on the relative net assets of each class. Distribution and transfer agent fees,
and any other class-specific expenses, if any, are calculated daily at the
class level based on the relative daily net assets of each class and the
specific expense rate applicable to each class.
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, forward contracts, and other
receivables and payables, on a book basis, were $1,347,000 for the six months
ended March 31, 2000.
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 March 31, 2000, net unrealized depreciation on investments, excluding
forward currency contracts, for book and federal income tax purposes aggregated
$268,691,000; $69,690,000 related to appreciated securities and $338,381,000
related to depreciated securities. There was no difference between book and tax
realized losses on securities transactions for the six months ended March 31,
2000. During the six months ended March 31, 2000, the fund realized, on a tax
basis, a net capital loss of $8,907,000 on securities transactions. The fund
has recognized 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.
Net gains related to non-U.S. currency transactions of $3,254,000 are 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 $2,983,602,000 at March 31, 2000.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $6,289,000 for management services was
incurred pursuant to an agreement with Capital Research and Management Company
(CRMC), with which certain officers and Trustees of the fund are affiliated.
The Investment Advisory and Service Agreement provides for monthly fees,
accrued daily, based on an annual rate of 0.30% of the first $60 million of
average net assets; 0.21% of such assets in excess of $60 million but not
exceeding $1 billion; and 0.18% of such assets in excess of $1 billion; plus
3.00% on the first $100 million of the fund's annual gross investment income;
and 2.50% of such income in excess of $100 million.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution FOR Class A shares,
the fund may expend up to 0.30% of Class A average daily 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. Pursuant to a Plan of Distribution
for Class B shares, the fund may expend up to 1.00% of Class B average daily
net assets annually to compensate dealers for their selling and servicing
efforts. During the six months ended March 31, 2000, distribution expenses
under the Plans of Distribution for Class A and Class B shares were $3,444,000
and $1,000, respectively. As of March 31, 2000, accrued and unpaid distribution
expenses for Class A and Class B shares were $634,000 and $0, respectively.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $1,028,000 (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 $1,067,000.
DEFERRED TRUSTEES' FEES - Trustees who are unaffiliated with CRMC may elect to
defer part or all of the fees earned for services as members of the Board.
Amounts deferred are not funded and are general unsecured liabilities of the
fund. As of March 31, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $76,000.
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 $624,611,000 and $519,260,000, respectively, during
the six months ended March 31, 2000.
As of March 31, 2000, net assets consist of the following:
<TABLE>
<CAPTION>
<S> <C>
Capital paid in on shares of
beneficial interest $3,041,686,000
Undistributed net investment income 2,993,000
Accumulated net realized gain (11,875,000)
Net unrealized appreciation/
depreciation (266,580,000)
Net Assets $2,766,224,000
</TABLE>
Capital share transactions in the fund were as follows:
(Insert table from 21 3 00 cap stock.xls file)
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 $43,000 includes $42,000 that was paid by these credits
rather than in cash.
At March 31, 2000, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
<TABLE>
<S> <C> <C> <C> <C>
Six
Year Months
ended ended
September 30, 1999 March 31,
2000
Amount (000) Shares Amount (000) Shares
Class A Shares: ---------- ---------- ---------- ----------
Sold $ 395,272 28,904,117 $1,060,634 75,509,296
Reinvestment of dividends and distributions 95,086 6,968,196 178,581 12,742,880
Repurchased (452,644) (33,107,071) (764,282) (54,497,988)
---------- --------- ---------- ----------
Net increase in Class A 37,714 2,765,242 474,933 33,754,188
Class B Shares: - -
Sold 2,429 179,831 - -
Reinvestment of dividends and distributions 2 117 - -
Repurchased (20) (1,469) - -
---------- ---------- ---------- ----------
Net increase in Class B 2,411 178,479 - -
Total net increase in fund $ 40,125 2,943,721 $ 474,933 33,754,188
========== ========== ========== ==========
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
Contract U.S.
Amount Valuations
---------- ---------- ---------- ----------
Non-U.S.
Currency Unrealized
Contracts Non-U.S. U.S. Amount Appreciation
------------------------ ---------- ---------- ---------- ----------
Sales:
British Pounds
expiring 4/26 to
6/22/00 Pound25,913,000 $41,793,000 $41,356,000 $437,000
Euros
expiring 04/14 to
7/31/00 E38,133,000 38,395,000 36,674,000 1,721,000
---------- ---------- ----------
$80,188,000 $78,030,000 $2,158,000
========== ========== ==========
</TABLE>
<TABLE>
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C> <C>
Net
Gains
(Losses)
on
Net Securities
Asset (both
Period Value, Net Realized
Ended Beginning Investment and
(1) of Period Income Unrealized)
-------- -------- -------- --------
Class A : 2000 $ 13.52 $.59(2) $(.17)(2)
1999 13.75 1.28 (.17)
1998 15.69 1.30 (1.60)
1997 14.86 1.26 .83
1996 14.30 1.29 .59
1995 13.97 1.33 .39
Class B(3): 2000 13.57 .02 (.26)(2)
Net
Dividends Distributions Asset
(from Net (from Value,
Investment Capital Total End of
Income) Gains) Distributions Period
-------- -------- -------- --------
Class A : $(.66) - $(.66) $ 13.28
(1.29) (.05) (1.34) 13.52
(1.30) (.34) (1.64) 13.75
(1.24) (.02) (1.26) 15.69
(1.32) - (1.32) 14.86
(1.32) (.07) (1.39) 14.30
Class B(3): (.05) - (.05) 13.28
Ratio Ratio
Net of of Net
Assets, Expenses Income
End of to to
Period Average Average Portfolio
(in Net Net Turnover
Millions) Assets Assets Rate
-------- -------- -------- --------
Class A : $2,764 .41% 4.31% 19.38% (6)
2,777 .82 9.21 29.79
2,360 .81 8.76 54.63
2,108 .82 8.35 53.55
1,547 .87 8.90 39.74
1,111 .89 9.72 29.56
Class B(3): 2.37 0.07 (5) 0.33 (5) 19.38 (6)
(1) The periods ended 1995 through
1999 represent fiscal years ended
September 30; the period ended
2000 represents the six months
ended March 31 (unaudited).
(2) Based on average shares
outstanding.
(3) Class B shares offered for
sale commencing March 15, 2000.
(4) Excludes sales charge on A
shares or contingent deferred
sales charge on B shares.
(5) Based on operations for
the period shown and, accordingly,
not representative of a full year.
(6) Represents portfolio turnover
rate for the period ended March
31, 2000.
</TABLE>
Results of Shareholder Meeting
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Held November 18, 1999
Shares Outstanding on August 25, 1999 (record date): 203,228,528
Shares Present on November 18, 1999: 130,333,776 (64.1%)
</TABLE>
Proposal 1: Election of Trustees
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Trustee Votes For Percent of Shares Votes Percent of
Voting For Withheld Shares Withheld
Richard G. Capen, Jr. 128,490,155 98.6% 1,843,621 1.4%
H. Frederick Christie 128,491,061 98.6 1,842,715 1.4
Don R. Conlan 128,570,239 98.6 1,763,537 1.4
Diane C. Creel 128,448,669 98.6 1,885,107 1.4
Martin Fenton 128,539,871 98.6 1,793,905 1.4
Leonard R. Fuller 128,565,206 98.6 1,768,570 1.4
Abner D. Goldstine 128,521,012 98.6 1,812,764 1.4
Paul G. Haaga, Jr. 128,571,559 98.6 1,762,217 1.4
Richard G. Newman 128,553,590 98.6 1,780,186 1.4
Frank M. Sanchez 128,393,660 98.5 1,940,116 1.5
</TABLE>
Proposal 2: Eliminate or revise certain of the fund's investment restrictions
Broker Non-Votes: 29,442,777
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Percent Percent Percent
of of of
Shares Shares Shares
Votes For Voting Votes Voting Absten-tions Abstai-ning
For Against Against
2A. Lending 89,693,425 68.8% 5,534,423 4.3% 5,663,151 4.3%
Activities
2B. 88,709,474 68.1 6,367,864 4.9 5,813,661 4.4
Pledging
Assets
2C. 88,605,861 68.0 6,262,253 4.8 6,022,885 4.6
Affiliated
Ownership
2D. 89,105,605 68.4 6,259,257 4.8 5,526,137 4.2
Purchasing
Securities
in Oil, Gas
or Mineral
Exploration
2E. 87,431,600 67.1 7,399,577 5.7 6,059,822 4.6
Investments
in
Unseasoned
Issuers
2F. 89,861,237 68.9 4,957,929 3.8 6,071,833 4.7
Purchasing
Securities
of other
Investment
Companies
</TABLE>
Proposal 3: Ratification of auditors
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Percent Percent Percent
of of of
Shares Shares Shares
Votes For Voting Votes Voting Absten-tions Abstai-ning
For Against Against
125,260,669 96.1% 1,195,535 0.9% 3,877,572 3.0%
</TABLE>
[The American Funds Group(r)]
Offices of the fund and of the
investment adviser, Capital Research
and Management Company
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5823
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
Custodian of assets
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
Counsel
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
There are two ways to invest in American High-Income Trust. Class A shares are
subject to a 3.75% maximum up-front sales charge that declines for accounts of
$100,000 or more. Class B shares, which are not available for certain
employer-sponsored retirement plans, have no up-front charge. They are,
however, subject to additional expenses of approximately 0.75% a year over the
first eight years of ownership. If redeemed within six years, they may also be
subject to a contingent deferred sales charge (5% maximum) that declines over
time. Because expenses are first deducted from income, dividends for Class B
share accounts will be lower.
For information about your account or any of the fund's services, or for a
prospectus for any of the American Funds, please contact your financial
adviser. You may also call American Funds Service Company, toll-free, at
800/421-0180, or visit www.americanfunds.com on the World Wide Web. Please read
the prospectus carefully before you invest or send money.
This report is for the information of shareholders of American High-Income
Trust, but it may also be used as sales literature when preceded or accompanied
by the current prospectus, which gives details about charges, expenses,
investment objectives and operating policies of the fund. If used as sales
material after June 30, 2000, this report must be accompanied by an American
Funds Group Statistical Update for the most recently completed calendar
quarter.
Printed on recycled paper
Litho in USA RCG/INS/4614
Lit. No. AHIT-013-0500
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