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. 19
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 22
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, 2000, pursuant
to paragraph (b) of rule 485.
<PAGE>
American High-Income TrustSM
Prospectus
DECEMBER 1, 2000
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>
TICKER NEWSPAPER FUND
SYMBOL ABBREVIATION NUMBER
------------------------------------------------------------
<S> <C> <C> <C>
Class A AHITX HI Tr 21
Class B AHTBX HI TrB 221
</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
-------------------------------------------------------
Management and Organization 9
-------------------------------------------------------
Shareholder Information 11
-------------------------------------------------------
Choosing a Share Class 12
-------------------------------------------------------
Purchase and Exchange of Shares 13
-------------------------------------------------------
Sales Charges 14
-------------------------------------------------------
Sales Charge Reductions and Waivers 15
-------------------------------------------------------
Plans of Distribution 17
-------------------------------------------------------
How to Sell Shares 18
-------------------------------------------------------
Distributions and Taxes 19
-------------------------------------------------------
Financial Highlights 20
-------------------------------------------------------
Appendix 21
-------------------------------------------------------
</TABLE>
1
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
AHIT-010-1200/B
<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's income may fluctuate 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 or longer maturity bonds may be subject
to greater price fluctuations than higher quality or 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.
2
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
INVESTMENT RESULTS
The following information provides some indication of the risks of investing in
the fund by showing changes in the fund's investment results from year to year
and by showing how the fund's average annual total returns for various periods
compare with those of a broad measure of market performance. Past results are
not an indication of future results.
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would
be lower.)
[BAR CHART]
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%
1999 7.55%
[END CHART]
The fund's year-to-date return for the nine months ended September 30, 2000
was 0.16%.
------------------------------------------------------------------------------
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>
3
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME/1/
<S> <C> <C> <C> <C>
Class A - began 2/19/88
(with the maximum sales charge 3.52% 10.14% 10.56% 10.08%
imposed)
------------------------------------------------------------------------------
Class B - began 3/15/00 N/A N/A N/A N/A
------------------------------------------------------------------------------
CS First Boston High Yield 3.28% 9.08% 11.06% 9.89%
Index /2/
------------------------------------------------------------------------------
Lipper High Current Yield 4.78% 9.46% 10.34% 8.99%
Index/3/
------------------------------------------------------------------------------
Salomon Smith Barney Broad -0.83% 7.74% 7.75% 7.98%
Investment Grade Index/4/
------------------------------------------------------------------------------
</TABLE>
Class A yield: 8.72%
(For current yield information, please call American FundsLine at
1-800-325-3590).
1 Lifetime figures are from the date the fund's Class A shares began investment
operations.
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 Lipper High Current Yield Bond Fund Index represents an equally weighted
performance index adjusted for capital gain distributions and income dividends
of the largest qualifying funds in this objective. This index is unmanaged and
does not reflect sales charges, commissions or expenses.
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.
Unlike the bar chart on the previous page, this table reflects the fund's
investment results with the maximum initial or deferred sales charge imposed,
as required by Securities and Exchange Commission rules. Class A share results
reflect the maximum initial sales charge of 3.75%. Sales charges are reduced
for purchases of $100,000 or more. Results would be higher if they were
calculated at net asset value. All fund results reflect the reinvestment of
dividend and capital gain distributions.
Class B shares are subject to a maximum deferred sales charge of 5.00% if
shares are redeemed within the first year of purchasing them. The deferred
sales charge declines thereafter until it reaches 0% after six years. Class B
shares convert to Class A shares after eight years. Since the fund's Class B
shares began investment operations on March 15, 2000, no results are available
as of the most recent calendar year-end.
4
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
FEES AND EXPENSES OF THE FUND
<TABLE>
<CAPTION>
SHAREHOLDER FEES
(fees paid directly from your investment) CLASS A CLASS B
--------------------------------------------------------------------------
<S> <C> <C>
Maximum sales charge imposed on purchases 3.75%/1/ 0.00%
(as a percentage of offering price)
--------------------------------------------------------------------------
Maximum sales charge imposed on reinvested dividends 0.00% 0.00%
--------------------------------------------------------------------------
Maximum deferred sales charge 0.00%/2/ 5.00%/3/
--------------------------------------------------------------------------
Redemption or exchange fees 0.00% 0.00%
</TABLE>
1 Sales charges are reduced or eliminated for purchases of $100,000 or more.
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.
3 Deferred sales charges are reduced after 12 months and eliminated after six
years.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets) CLASS A CLASS B/1/
-----------------------------------------------
<S> <C> <C>
Management Fees 0.45% 0.45%
Distribution and/or Service (12b-1) Fees 0.25%/2/ 1.00%
Other Expenses 0.12% 0.07%
Total Annual Fund Operating Expenses 0.82% 1.52%
</TABLE>
1 Annualized.
2 Class A 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, that your investment
has a 5% return each year and that the fund's operating expenses remain the
same as shown above. The "Class A" example reflects the maximum initial sales
charge in Year One. The "Class B - assuming redemption" example reflects
applicable contingent deferred sales charges through Year Six (after which time
they are eliminated). Both Class B examples reflect Class A expenses for Years
9 and 10 since Class B shares automatically convert to Class A after eight
years. Although your actual costs may be higher or lower, based on these
assumptions your cumulative expenses would be:
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ONE THREE FIVE TEN
<S> <C> <C> <C> <C>
Class A $456 $627 $ 813 $1,350
------------------------------------------------------------------------------
Class B - assuming redemption $655 $880 $1,029 $1,624
Class B - assuming no redemption $155 $480 $ 829 $1,624
</TABLE>
5
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, higher yielding debt securities
(rated Ba or BB or below or unrated but determined to be of equivalent
quality), 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, and individual securities by changes in their 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 the
credit strength of an issuer will weaken and/or 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 or longer maturity bonds may
be subject to greater price fluctuations than higher quality or shorter
maturity bonds. The fund's investment adviser attempts to reduce these risks
through diversification of the portfolio and with ongoing credit analysis of
each issuer as well as by monitoring economic and legislative developments.
The values of equity securities held by the fund may 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 and interest rate 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 objectives, but it also would
reduce the fund's exposure in the event of a market downturn and provide
liquidity to make additional investments or to meet redemptions.
The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
investments. 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.
6
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
ADDITIONAL INVESTMENT RESULTS
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME/1/
<S> <C> <C> <C> <C>
Class A - began 2/19/88 7.55% 10.98% 10.98% 10.43%
(with no sales charge imposed)
------------------------------------------------------------------------------
Class B - began 3/15/00 N/A N/A N/A N/A
------------------------------------------------------------------------------
CS First Boston High Yield 3.28% 9.08% 11.06% 9.89%
Index/2/
------------------------------------------------------------------------------
Lipper High Current Yield 4.78% 9.46% 10.34% 8.99%
Index/3/
------------------------------------------------------------------------------
Salomon Smith Barney Broad -0.83% 7.74% 7.75% 7.98%
Investment Grade Index/4/
------------------------------------------------------------------------------
</TABLE>
Class A distribution rate/5/: 9.12%
1 Lifetime figures are from the date the fund's Class A shares began investment
operations.
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 Lipper High Current Yield Bond Fund Index represents an equally weighted
performance index adjusted for capital gain distributions and income dividends
of the largest qualifying funds in this objective. This index is unmanaged and
does not reflect sales charges, commissions or expenses.
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 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.
7
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, 2000
[PIE CHART]
U.S. Corporate Boonds 70.5%
Non-U.S. Corporate Bonds 18.3%
Stocks 2.2%
Non-U.S. Government Bonds 1.9%
U.S. Treasuries 1.2%
Cash & Cash Equivalents 5.9%
[end chart]
Holdings by Quality Category
See the Appendix for a description of quality ratings.
[pie chart]
Aaa/AAA 1.2%
A/A 0.7%
Baa/BBB 12.2%
Ba/BB 12.5%
B/B 55.8%
Caa/CCC 8.6%
CC or lower 0.9%
[end chart]
<TABLE>
<CAPTION>
PERCENT OF
TEN LARGEST HOLDINGS BY ISSUER NET ASSETS
-------------------------------------------------------------------
<S> <C>
Nextel Communications 5.69%
-------------------------------------------------------------------
VoiceStream Wireless 4.91
-------------------------------------------------------------------
Clearnet Communications 2.52
-------------------------------------------------------------------
Crown Castle International 2.49
-------------------------------------------------------------------
NTL 2.10
-------------------------------------------------------------------
Charter Communications Holdings 2.02
-------------------------------------------------------------------
Fox/Liberty Networks 1.63
-------------------------------------------------------------------
Container Corp. of America 1.61
-------------------------------------------------------------------
Premcor 1.52
-------------------------------------------------------------------
Allied Waste North America 1.44
</TABLE>
Because the fund is actively managed, its holdings will change from time to
time.
8
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."
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.
9
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
APPROXIMATE YEARS OF EXPERIENCE
AS AN INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE (INCLUDING THE LAST FIVE YEARS)
AS PORTFOLIO COUNSELOR
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 3 years 33 years 49 years
GOLDSTINE of the fund. Senior Vice
President and Director,
Capital Research and
Management Company
----------------------------------------------------------------
---------------------------------------------
DAVID C. President and Trustee of 11 years 13 years 19 years
BARCLAY the fund. Senior Vice
President and Director,
Capital Research and
Management Company
-------------------------------------------------------------------------------------------------------------
SUSAN M. Vice President of the fund. 7 years 11 years 12 years
TOLSON Senior Vice President,
Capital Research Company*
----------------------------------------------------------------
-----------------------------
* Company affiliated with Capital Research and Management Company
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
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 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
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, Class B
shares generally are not available to certain retirement plans (for example,
group retirement plans such as 401(k) plans, employer-sponsored 403(b) plans,
and money purchase pension and profit sharing plans). Some retirement plans or
accounts held by investment dealers may not offer certain services. If you
have any questions, please contact American Funds Service Company, your plan
administrator/trustee or dealer.
11
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
CHOOSING A SHARE CLASS
The fund offers both Class A and Class B shares. Each share class has its own
sales charge and expense structure, allowing you to choose the class that best
meets your situation.
Factors you should consider in choosing a class of shares include:
. How long you expect to own the shares
. How much you intend to invest
. The expenses associated with owning shares of each class
. Whether you qualify for any reduction or waiver of sales charges (for
example, Class A shares may be a less expensive option over time if you
qualify for a sales charge reduction or waiver)
EACH INVESTOR'S FINANCIAL CONSIDERATIONS ARE DIFFERENT. YOU SHOULD SPEAK WITH
YOUR FINANCIAL ADVISER TO HELP YOU DECIDE WHICH SHARE CLASS IS BEST FOR YOU.
Differences between Class A and Class B shares include:
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------------------------------------------------
<S> <S>
Initial sales charge of up to No initial sales charge.
3.75%. Sales charges are reduced or
eliminated for purchases of
$100,000 or more (see "Sales
Charges - Class A").
------------------------------------------------------------------------------
Distribution and service (12b-1) Distribution and service (12b-1) fees
fees of up to 0.30% annually. of 1.00% annually.
------------------------------------------------------------------------------
Higher dividends, if any, than Lower dividends, if any, than Class A
Class B shares due to lower annual shares due to higher distribution fees
expenses. and other expenses.
------------------------------------------------------------------------------
No contingent deferred sales charge A contingent deferred sales charge if
(except on certain redemptions on you sell shares within six years of
purchases of $1 million or more buying them. The charge starts at 5%
bought without an initial sales and declines thereafter until it
charge). reaches 0% after six years. (See "Sales
Charges - Class B.")
------------------------------------------------------------------------------
No purchase maximum. Maximum purchase of $100,000.
------------------------------------------------------------------------------
Automatic conversion to Class A shares
after eight years, reducing future
annual expenses.
------------------------------------------------------------------------------
</TABLE>
12
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
PURCHASE AND EXCHANGE OF SHARES
PURCHASE
Generally, you may open an account by contacting any investment dealer (who may
impose transaction charges in addition to those described in this prospectus)
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 shares of the same class of other funds in
The American Funds Group generally without a sales charge. For purposes of
computing the contingent deferred sales charge on Class B shares, the length of
time you have owned your shares will be measured from the date of original
purchase and will not be affected by any exchange.
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>
PURCHASE MINIMUMS FOR CLASS A AND B SHARES
<S> <C>
To establish an account (including retirement plan accounts) $ 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
PURCHASE MAXIMUM FOR CLASS B SHARES $100,000
</TABLE>
13
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
SHARE PRICE
The fund calculates its share price, also called net asset value, as of
approximately 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. The fund has adopted
procedures to make "fair value" determinations when reliable market
prices for securities are not available.
Your shares will be purchased at the net asset value plus any applicable sales
charge in the case of Class A shares, or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request. Sales of certain Class A and B shares may be subject to contingent
deferred sales charges.
---------------------------------------------------------
SALES CHARGES
CLASS A
The initial sales charge you pay when you buy Class A shares differs depending
upon the amount you invest and may be reduced or eliminated 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 $100,000 3.75% 3.90% 3.00%
------------------------------------------------------------------------------
$100,000 but less than 3.50% 3.63% 2.75%
$250,000
------------------------------------------------------------------------------
$250,000 but less than 2.50% 2.56% 2.00%
$500,000
------------------------------------------------------------------------------
$500,000 but less than 2.00% 2.04% 1.60%
$750,000
------------------------------------------------------------------------------
$750,000 but less than $1
million 1.50% 1.52% 1.20%
------------------------------------------------------------------------------
$1 million or more and certain other
investments described below see below see below see below
</TABLE>
CLASS A 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, and Individual Retirement Account rollovers involving
retirement plan assets invested in the American Funds, may invest with no sales
charge and are not
14
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
subject to a contingent deferred sales charge. Investments made through
retirement plans, endowments or foundations with $50 million or more in assets,
or through certain qualified fee-based programs 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.
CLASS B
Class B shares are sold without any initial sales charge. However, a contingent
deferred sales charge may be applied to the value of the shares you redeem
within six years of purchase, as shown in the table below.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Shares sold within year 1 2 3 4 5 6
----------------------------------------------------------------
Contingent deferred sales charge 5% 4% 4% 3% 2% 1%
</TABLE>
Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to a contingent deferred sales charge. In addition, the
contingent deferred sales charge may be waived in certain circumstances. See
"Contingent Deferred Sales Charge Waivers for Class B Shares" below. The
contingent deferred sales charge is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. For purposes
of determining the contingent deferred sales charge, if you sell only some of
your shares, shares that are not subject to any contingent deferred sales
charge will be sold first and then shares that you have owned the longest.
American Funds Distributors pays compensation equal to 4% of the amount
invested to dealers who sell Class B shares.
CLASS B CONVERSION TO A SHARES
Class B shares automatically convert to Class A shares in the month of the
eight-year anniversary of the purchase date. The Internal Revenue Service
currently takes the position that this automatic conversion is not taxable.
Should their position change, shareholders would still have the option of
converting but may face certain tax consequences. Please see the statement of
additional information for more information.
---------------------------------------------------------
SALES CHARGE REDUCTIONS AND WAIVERS
You must let your investment dealer or American Funds Service Company know if
you qualify for a reduction in your Class A sales charge or waiver of your
Class B contingent deferred sales charge using one or any combination of the
methods described below, in the statement of additional information and
"Welcome to the Family."
15
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
REDUCING YOUR CLASS A SALES CHARGE
You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your Class A sales charge.
AGGREGATING ACCOUNTS
To receive a reduced Class A 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 Class A and/or B shares 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 Class A sales charge. Direct purchases of money market funds are
excluded.
RIGHTS OF ACCUMULATION
You may take into account the current value (or if greater, the amount you
invested less any withdrawals) of your existing Class A and B holdings in the
American Funds, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to determine your Class
A sales charge. Direct purchases of money market funds are excluded.
STATEMENT OF INTENTION
You can reduce the sales charge you pay on your Class A share purchases by
establishing a Statement of Intention. A Statement of Intention allows you to
combine all Class A and B share non-money market fund purchases, as well as
individual American Legacy variable annuity and life insurance policies you
intend to make over a 13-month period, to determine the applicable sales
charge. At your request purchases made during the previous 90 days may be
included; however, capital appreciation and reinvested dividends and capital
gains do not apply toward these combined purchases. A portion of your account
may be held in escrow to cover additional Class A sales charges which may be
16
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
due if your total investments over the 13-month period do not qualify for the
applicable sales charge reduction.
CONTINGENT DEFERRED SALES CHARGE WAIVERS FOR CLASS B SHARES
The contingent deferred sales charge on Class B shares may be waived in the
following cases:
. when receiving payments through systematic withdrawal plans (up to 12% of
the value of your account);
. when receiving required minimum distributions from retirement accounts upon
reaching age 70 1/2; or
. for redemptions due to death or post-purchase disability of the
shareholder.
For more information, please consult your financial adviser, the statement of
additional information or "Welcome to the Family."
---------------------------------------------------------
PLANS OF DISTRIBUTION
The fund has Plans of Distribution or "12b-1 Plans" 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. The plans
provide for annual expenses of up to 0.30% for Class A shares and 1.00% for
Class B shares. Up to 0.25% of these payments are used to pay service fees to
qualified dealers for providing certain shareholder services. The remaining
0.75% expense for Class B shares is used for financing commissions paid to your
dealer. The 12b-1 fees paid by the fund, as a percentage of average net assets,
for the previous fiscal year is indicated above 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. The higher fees for Class B shares may cost you more over time
than paying the initial sales charge for Class A shares.
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.
17
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
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 Funds Service Company reserves the right to require signature
guarantee(s) on all redemptions.
. 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, fax, or computer (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 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
18
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
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, it and/or the fund may be
liable for losses due to unauthorized or fraudulent instructions.
---------------------------------------------------------
DISTRIBUTIONS AND TAXES
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 dividend or 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 net
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.
19
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
FINANCIAL HIGHLIGHTS/1/
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>
Net gains/(losses) on
Net asset securities Dividends
value, Net (both realized Total from (from net Distributions
Year ended Beginning of investment and investment investment (from capital Total
September 30 year income unrealized) operations income) gains) distributions
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $13.52 $1.18/2/ $(.48)/2/ $.70 $(1.29) - $(1.29)
1999 13.75 1.28 (.17) 1.11 (1.29) $(.05) (1.34)
1998 15.69 1.30 (1.60) (.30) (1.30) (.34) (1.64)
1997 14.86 1.26 .83 2.09 (1.24) (.02) (1.26)
1996 14.30 1.29 .59 1.88 (1.32) - (1.32)
CLASS B:
2000 13.57 .52/2/ (.53)/2/ (.01) (.63) - (.63)
<CAPTION>
Ratio of Ratio of net
Net asset Net assets, expenses to income to
Year ended value, end of end of year average net average net Portfolio
September 30 year Total return (in millions) assets assets turnover rate
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $12.93 5.29% $2,788 .82% 8.87% 46.43%/4/
1999 13.52 8.11 2,777 .82 9.21 29.79
1998 13.75 (2.40) 2,360 .81 8.76 54.63
1997 15.69 14.66 2,108 .82 8.35 53.55
1996 14.86 13.68 1,547 .87 8.90 39.74
CLASS B:
2000 12.93 (.10) 27 1.52/3/ 8.18/3/ 46.43/4/
</TABLE>
1 The years 1996 through 2000 represent, for Class A shares, fiscal years ended
September 30. The year ended 2000 represents, for Class B shares, the 199-day
period ended September 30, 2000. Class B shares were not offered before March
15, 2000. The total return for Class B is based on activity during the period
and thus is not representative of a full year. Total returns exclude all sales
charges, including contingent deferred sales charges.
2 Based on average shares outstanding.
3 Annualized.
4 Represents portfolio turnover rate (equivalent for all share classes) for the
year ended September 30, 2000.
20
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."
21
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.
22
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
FOR SHAREHOLDER SERVICES American Funds Service Company
800/421-0180
FOR RETIREMENT PLAN SERVICES Call your employer or plan administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900 Ext. 11
FOR 24-HOUR INFORMATION American FundsLine(R)
800/325-3590
American FundsLine OnLine(R)
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.
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 accountants' report
(in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The SAI contains
more detailed information on all aspects of the fund, including the fund's
financial statements and is incorporated by reference into this prospectus.
The Codes of Ethics describe the personal investing policies adopted by the
fund and the fund's investment adviser and its affiliated companies.
The Codes of Ethics and current SAI have been filed with the Securities and
Exchange Commission ("SEC"). 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. (202/942-8090) or on the EDGAR database on the SEC's Internet
Web site at http://www.sec.gov, or, after payment of a duplicating fee, via
e-mail request to [email protected] or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102.
HOUSEHOLD MAILINGS Each year you are automatically sent an updated
prospectus, annual and semi-annual report for the fund. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents
will be sent to shareholders that are part of the same family and share the
same residential address.
If you would like to receive individual copies of these documents at no
charge, please call American Funds Service Company at 800/421-0180 or write to
the Secretary of the fund at 333 South Hope Street, Los Angeles, California
90071.
Investment Company File No. 811-5364
Printed on recycled paper
THE FUND PROVIDES SPANISH TRANSLATIONS IN CONNECTION WITH THE PUBLIC OFFERING
AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH
TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS FOR THE FUND.
/s/ Julie F. Williams
Julie F. Williams
Secretary
<PAGE>
American High-Income TrustSM
Prospectus
DECEMBER 1, 2000
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>
TICKER NEWSPAPER FUND
SYMBOL ABBREVIATION NUMBER
------------------------------------------------------------
<S> <C> <C> <C>
Class A AHITX HI Tr 21
Class B AHTBX HI TrB 221
</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
-------------------------------------------------------
Management and Organization 9
-------------------------------------------------------
Shareholder Information 11
-------------------------------------------------------
Choosing a Share Class 12
-------------------------------------------------------
Purchase and Exchange of Shares 13
-------------------------------------------------------
Sales Charges 14
-------------------------------------------------------
Sales Charge Reductions and Waivers 15
-------------------------------------------------------
Plans of Distribution 17
-------------------------------------------------------
How to Sell Shares 18
-------------------------------------------------------
Distributions and Taxes 19
-------------------------------------------------------
Financial Highlights 20
-------------------------------------------------------
Appendix 21
-------------------------------------------------------
</TABLE>
1
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
AHIT-010-1200/B
<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's income may fluctuate 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 or longer maturity bonds may be subject
to greater price fluctuations than higher quality or 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.
2
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
INVESTMENT RESULTS
The following information provides some indication of the risks of investing in
the fund by showing changes in the fund's investment results from year to year
and by showing how the fund's average annual total returns for various periods
compare with those of a broad measure of market performance. Past results are
not an indication of future results.
CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES
(Results do not include a sales charge; if one were included, results would
be lower.)
[BAR CHART]
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%
1999 7.55%
[END CHART]
The fund's year-to-date return for the nine months ended September 30, 2000
was 0.16%.
------------------------------------------------------------------------------
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>
3
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME/1/
<S> <C> <C> <C> <C>
Class A - began 2/19/88
(with the maximum sales charge 3.52% 10.14% 10.56% 10.08%
imposed)
------------------------------------------------------------------------------
Class B - began 3/15/00 N/A N/A N/A N/A
------------------------------------------------------------------------------
CS First Boston High Yield 3.28% 9.08% 11.06% 9.89%
Index /2/
------------------------------------------------------------------------------
Lipper High Current Yield 4.78% 9.46% 10.34% 8.99%
Index/3/
------------------------------------------------------------------------------
Salomon Smith Barney Broad -0.83% 7.74% 7.75% 7.98%
Investment Grade Index/4/
------------------------------------------------------------------------------
</TABLE>
Class A yield: 8.72%
(For current yield information, please call American FundsLine at
1-800-325-3590).
1 Lifetime figures are from the date the fund's Class A shares began investment
operations.
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 Lipper High Current Yield Bond Fund Index represents an equally weighted
performance index adjusted for capital gain distributions and income dividends
of the largest qualifying funds in this objective. This index is unmanaged and
does not reflect sales charges, commissions or expenses.
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.
Unlike the bar chart on the previous page, this table reflects the fund's
investment results with the maximum initial or deferred sales charge imposed,
as required by Securities and Exchange Commission rules. Class A share results
reflect the maximum initial sales charge of 3.75%. Sales charges are reduced
for purchases of $100,000 or more. Results would be higher if they were
calculated at net asset value. All fund results reflect the reinvestment of
dividend and capital gain distributions.
Class B shares are subject to a maximum deferred sales charge of 5.00% if
shares are redeemed within the first year of purchasing them. The deferred
sales charge declines thereafter until it reaches 0% after six years. Class B
shares convert to Class A shares after eight years. Since the fund's Class B
shares began investment operations on March 15, 2000, no results are available
as of the most recent calendar year-end.
4
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
FEES AND EXPENSES OF THE FUND
<TABLE>
<CAPTION>
SHAREHOLDER FEES
(fees paid directly from your investment) CLASS A CLASS B
--------------------------------------------------------------------------
<S> <C> <C>
Maximum sales charge imposed on purchases 3.75%/1/ 0.00%
(as a percentage of offering price)
--------------------------------------------------------------------------
Maximum sales charge imposed on reinvested dividends 0.00% 0.00%
--------------------------------------------------------------------------
Maximum deferred sales charge 0.00%/2/ 5.00%/3/
--------------------------------------------------------------------------
Redemption or exchange fees 0.00% 0.00%
</TABLE>
1 Sales charges are reduced or eliminated for purchases of $100,000 or more.
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.
3 Deferred sales charges are reduced after 12 months and eliminated after six
years.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets) CLASS A CLASS B/1/
-----------------------------------------------
<S> <C> <C>
Management Fees 0.45% 0.45%
Distribution and/or Service (12b-1) Fees 0.25%/2/ 1.00%
Other Expenses 0.12% 0.07%
Total Annual Fund Operating Expenses 0.82% 1.52%
</TABLE>
1 Annualized.
2 Class A 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, that your investment
has a 5% return each year and that the fund's operating expenses remain the
same as shown above. The "Class A" example reflects the maximum initial sales
charge in Year One. The "Class B - assuming redemption" example reflects
applicable contingent deferred sales charges through Year Six (after which time
they are eliminated). Both Class B examples reflect Class A expenses for Years
9 and 10 since Class B shares automatically convert to Class A after eight
years. Although your actual costs may be higher or lower, based on these
assumptions your cumulative expenses would be:
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ONE THREE FIVE TEN
<S> <C> <C> <C> <C>
Class A $456 $627 $ 813 $1,350
------------------------------------------------------------------------------
Class B - assuming redemption $655 $880 $1,029 $1,624
Class B - assuming no redemption $155 $480 $ 829 $1,624
</TABLE>
5
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, higher yielding debt securities
(rated Ba or BB or below or unrated but determined to be of equivalent
quality), 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, and individual securities by changes in their 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 the
credit strength of an issuer will weaken and/or 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 or longer maturity bonds may
be subject to greater price fluctuations than higher quality or shorter
maturity bonds. The fund's investment adviser attempts to reduce these risks
through diversification of the portfolio and with ongoing credit analysis of
each issuer as well as by monitoring economic and legislative developments.
The values of equity securities held by the fund may 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 and interest rate 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 objectives, but it also would
reduce the fund's exposure in the event of a market downturn and provide
liquidity to make additional investments or to meet redemptions.
The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
investments. 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.
6
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
ADDITIONAL INVESTMENT RESULTS
For periods ended December 31, 1999:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME/1/
<S> <C> <C> <C> <C>
Class A - began 2/19/88 7.55% 10.98% 10.98% 10.43%
(with no sales charge imposed)
------------------------------------------------------------------------------
Class B - began 3/15/00 N/A N/A N/A N/A
------------------------------------------------------------------------------
CS First Boston High Yield 3.28% 9.08% 11.06% 9.89%
Index/2/
------------------------------------------------------------------------------
Lipper High Current Yield 4.78% 9.46% 10.34% 8.99%
Index/3/
------------------------------------------------------------------------------
Salomon Smith Barney Broad -0.83% 7.74% 7.75% 7.98%
Investment Grade Index/4/
------------------------------------------------------------------------------
</TABLE>
Class A distribution rate/5/: 9.12%
1 Lifetime figures are from the date the fund's Class A shares began investment
operations.
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 Lipper High Current Yield Bond Fund Index represents an equally weighted
performance index adjusted for capital gain distributions and income dividends
of the largest qualifying funds in this objective. This index is unmanaged and
does not reflect sales charges, commissions or expenses.
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 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.
7
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, 2000
[PIE CHART]
U.S. Corporate Boonds 70.5%
Non-U.S. Corporate Bonds 18.3%
Stocks 2.2%
Non-U.S. Government Bonds 1.9%
U.S. Treasuries 1.2%
Cash & Cash Equivalents 5.9%
[end chart]
Holdings by Quality Category
See the Appendix for a description of quality ratings.
[pie chart]
Aaa/AAA 1.2%
A/A 0.7%
Baa/BBB 12.2%
Ba/BB 12.5%
B/B 55.8%
Caa/CCC 8.6%
CC or lower 0.9%
[end chart]
<TABLE>
<CAPTION>
PERCENT OF
TEN LARGEST HOLDINGS BY ISSUER NET ASSETS
-------------------------------------------------------------------
<S> <C>
Nextel Communications 5.69%
-------------------------------------------------------------------
VoiceStream Wireless 4.91
-------------------------------------------------------------------
Clearnet Communications 2.52
-------------------------------------------------------------------
Crown Castle International 2.49
-------------------------------------------------------------------
NTL 2.10
-------------------------------------------------------------------
Charter Communications Holdings 2.02
-------------------------------------------------------------------
Fox/Liberty Networks 1.63
-------------------------------------------------------------------
Container Corp. of America 1.61
-------------------------------------------------------------------
Premcor 1.52
-------------------------------------------------------------------
Allied Waste North America 1.44
</TABLE>
Because the fund is actively managed, its holdings will change from time to
time.
8
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."
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.
9
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
APPROXIMATE YEARS OF EXPERIENCE
AS AN INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE (INCLUDING THE LAST FIVE YEARS)
AS PORTFOLIO COUNSELOR
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 3 years 33 years 49 years
GOLDSTINE of the fund. Senior Vice
President and Director,
Capital Research and
Management Company
----------------------------------------------------------------
---------------------------------------------
DAVID C. President and Trustee of 11 years 13 years 19 years
BARCLAY the fund. Senior Vice
President and Director,
Capital Research and
Management Company
-------------------------------------------------------------------------------------------------------------
SUSAN M. Vice President of the fund. 7 years 11 years 12 years
TOLSON Senior Vice President,
Capital Research Company*
----------------------------------------------------------------
-----------------------------
* Company affiliated with Capital Research and Management Company
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
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 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, Class B
shares generally are not available to certain retirement plans (for example,
group retirement plans such as 401(k) plans, employer-sponsored 403(b) plans,
and money purchase pension and profit sharing plans). Some retirement plans or
accounts held by investment dealers may not offer certain services. If you
have any questions, please contact American Funds Service Company, your plan
administrator/trustee or dealer.
11
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
CHOOSING A SHARE CLASS
The fund offers both Class A and Class B shares. Each share class has its own
sales charge and expense structure, allowing you to choose the class that best
meets your situation.
Factors you should consider in choosing a class of shares include:
. How long you expect to own the shares
. How much you intend to invest
. The expenses associated with owning shares of each class
. Whether you qualify for any reduction or waiver of sales charges (for
example, Class A shares may be a less expensive option over time if you
qualify for a sales charge reduction or waiver)
EACH INVESTOR'S FINANCIAL CONSIDERATIONS ARE DIFFERENT. YOU SHOULD SPEAK WITH
YOUR FINANCIAL ADVISER TO HELP YOU DECIDE WHICH SHARE CLASS IS BEST FOR YOU.
Differences between Class A and Class B shares include:
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------------------------------------------------
<S> <S>
Initial sales charge of up to No initial sales charge.
3.75%. Sales charges are reduced or
eliminated for purchases of
$100,000 or more (see "Sales
Charges - Class A").
------------------------------------------------------------------------------
Distribution and service (12b-1) Distribution and service (12b-1) fees
fees of up to 0.30% annually. of 1.00% annually.
------------------------------------------------------------------------------
Higher dividends, if any, than Lower dividends, if any, than Class A
Class B shares due to lower annual shares due to higher distribution fees
expenses. and other expenses.
------------------------------------------------------------------------------
No contingent deferred sales charge A contingent deferred sales charge if
(except on certain redemptions on you sell shares within six years of
purchases of $1 million or more buying them. The charge starts at 5%
bought without an initial sales and declines thereafter until it
charge). reaches 0% after six years. (See "Sales
Charges - Class B.")
------------------------------------------------------------------------------
No purchase maximum. Maximum purchase of $100,000.
------------------------------------------------------------------------------
Automatic conversion to Class A shares
after eight years, reducing future
annual expenses.
------------------------------------------------------------------------------
</TABLE>
12
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
PURCHASE AND EXCHANGE OF SHARES
PURCHASE
Generally, you may open an account by contacting any investment dealer (who may
impose transaction charges in addition to those described in this prospectus)
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 shares of the same class of other funds in
The American Funds Group generally without a sales charge. For purposes of
computing the contingent deferred sales charge on Class B shares, the length of
time you have owned your shares will be measured from the date of original
purchase and will not be affected by any exchange.
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>
PURCHASE MINIMUMS FOR CLASS A AND B SHARES
<S> <C>
To establish an account (including retirement plan accounts) $ 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
PURCHASE MAXIMUM FOR CLASS B SHARES $100,000
</TABLE>
13
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
SHARE PRICE
The fund calculates its share price, also called net asset value, as of
approximately 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. The fund has adopted
procedures to make "fair value" determinations when reliable market
prices for securities are not available.
Your shares will be purchased at the net asset value plus any applicable sales
charge in the case of Class A shares, or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request. Sales of certain Class A and B shares may be subject to contingent
deferred sales charges.
---------------------------------------------------------
SALES CHARGES
CLASS A
The initial sales charge you pay when you buy Class A shares differs depending
upon the amount you invest and may be reduced or eliminated 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 $100,000 3.75% 3.90% 3.00%
------------------------------------------------------------------------------
$100,000 but less than 3.50% 3.63% 2.75%
$250,000
------------------------------------------------------------------------------
$250,000 but less than 2.50% 2.56% 2.00%
$500,000
------------------------------------------------------------------------------
$500,000 but less than 2.00% 2.04% 1.60%
$750,000
------------------------------------------------------------------------------
$750,000 but less than $1
million 1.50% 1.52% 1.20%
------------------------------------------------------------------------------
$1 million or more and certain other
investments described below see below see below see below
</TABLE>
CLASS A 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, and Individual Retirement Account rollovers involving
retirement plan assets invested in the American Funds, may invest with no sales
charge and are not
14
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
subject to a contingent deferred sales charge. Investments made through
retirement plans, endowments or foundations with $50 million or more in assets,
or through certain qualified fee-based programs 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.
CLASS B
Class B shares are sold without any initial sales charge. However, a contingent
deferred sales charge may be applied to the value of the shares you redeem
within six years of purchase, as shown in the table below.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Shares sold within year 1 2 3 4 5 6
----------------------------------------------------------------
Contingent deferred sales charge 5% 4% 4% 3% 2% 1%
</TABLE>
Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to a contingent deferred sales charge. In addition, the
contingent deferred sales charge may be waived in certain circumstances. See
"Contingent Deferred Sales Charge Waivers for Class B Shares" below. The
contingent deferred sales charge is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. For purposes
of determining the contingent deferred sales charge, if you sell only some of
your shares, shares that are not subject to any contingent deferred sales
charge will be sold first and then shares that you have owned the longest.
American Funds Distributors pays compensation equal to 4% of the amount
invested to dealers who sell Class B shares.
CLASS B CONVERSION TO A SHARES
Class B shares automatically convert to Class A shares in the month of the
eight-year anniversary of the purchase date. The Internal Revenue Service
currently takes the position that this automatic conversion is not taxable.
Should their position change, shareholders would still have the option of
converting but may face certain tax consequences. Please see the statement of
additional information for more information.
---------------------------------------------------------
SALES CHARGE REDUCTIONS AND WAIVERS
You must let your investment dealer or American Funds Service Company know if
you qualify for a reduction in your Class A sales charge or waiver of your
Class B contingent deferred sales charge using one or any combination of the
methods described below, in the statement of additional information and
"Welcome to the Family."
15
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
REDUCING YOUR CLASS A SALES CHARGE
You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your Class A sales charge.
AGGREGATING ACCOUNTS
To receive a reduced Class A 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 Class A and/or B shares 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 Class A sales charge. Direct purchases of money market funds are
excluded.
RIGHTS OF ACCUMULATION
You may take into account the current value (or if greater, the amount you
invested less any withdrawals) of your existing Class A and B holdings in the
American Funds, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to determine your Class
A sales charge. Direct purchases of money market funds are excluded.
STATEMENT OF INTENTION
You can reduce the sales charge you pay on your Class A share purchases by
establishing a Statement of Intention. A Statement of Intention allows you to
combine all Class A and B share non-money market fund purchases, as well as
individual American Legacy variable annuity and life insurance policies you
intend to make over a 13-month period, to determine the applicable sales
charge. At your request purchases made during the previous 90 days may be
included; however, capital appreciation and reinvested dividends and capital
gains do not apply toward these combined purchases. A portion of your account
may be held in escrow to cover additional Class A sales charges which may be
16
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
due if your total investments over the 13-month period do not qualify for the
applicable sales charge reduction.
CONTINGENT DEFERRED SALES CHARGE WAIVERS FOR CLASS B SHARES
The contingent deferred sales charge on Class B shares may be waived in the
following cases:
. when receiving payments through systematic withdrawal plans (up to 12% of
the value of your account);
. when receiving required minimum distributions from retirement accounts upon
reaching age 70 1/2; or
. for redemptions due to death or post-purchase disability of the
shareholder.
For more information, please consult your financial adviser, the statement of
additional information or "Welcome to the Family."
---------------------------------------------------------
PLANS OF DISTRIBUTION
The fund has Plans of Distribution or "12b-1 Plans" 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. The plans
provide for annual expenses of up to 0.30% for Class A shares and 1.00% for
Class B shares. Up to 0.25% of these payments are used to pay service fees to
qualified dealers for providing certain shareholder services. The remaining
0.75% expense for Class B shares is used for financing commissions paid to your
dealer. The 12b-1 fees paid by the fund, as a percentage of average net assets,
for the previous fiscal year is indicated above 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. The higher fees for Class B shares may cost you more over time
than paying the initial sales charge for Class A shares.
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.
17
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
---------------------------------------------------------
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 Funds Service Company reserves the right to require signature
guarantee(s) on all redemptions.
. 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, fax, or computer (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 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
18
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
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, it and/or the fund may be
liable for losses due to unauthorized or fraudulent instructions.
---------------------------------------------------------
DISTRIBUTIONS AND TAXES
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 dividend or 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 net
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.
19
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
FINANCIAL HIGHLIGHTS/1/
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>
Net gains/(losses) on
Net asset securities Dividends
value, Net (both realized Total from (from net Distributions
Year ended Beginning of investment and investment investment (from capital Total
September 30 year income unrealized) operations income) gains) distributions
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $13.52 $1.18/2/ $(.48)/2/ $.70 $(1.29) - $(1.29)
1999 13.75 1.28 (.17) 1.11 (1.29) $(.05) (1.34)
1998 15.69 1.30 (1.60) (.30) (1.30) (.34) (1.64)
1997 14.86 1.26 .83 2.09 (1.24) (.02) (1.26)
1996 14.30 1.29 .59 1.88 (1.32) - (1.32)
CLASS B:
2000 13.57 .52/2/ (.53)/2/ (.01) (.63) - (.63)
<CAPTION>
Ratio of Ratio of net
Net asset Net assets, expenses to income to
Year ended value, end of end of year average net average net Portfolio
September 30 year Total return (in millions) assets assets turnover rate
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
2000 $12.93 5.29% $2,788 .82% 8.87% 46.43%/4/
1999 13.52 8.11 2,777 .82 9.21 29.79
1998 13.75 (2.40) 2,360 .81 8.76 54.63
1997 15.69 14.66 2,108 .82 8.35 53.55
1996 14.86 13.68 1,547 .87 8.90 39.74
CLASS B:
2000 12.93 (.10) 27 1.52/3/ 8.18/3/ 46.43/4/
</TABLE>
1 The years 1996 through 2000 represent, for Class A shares, fiscal years ended
September 30. The year ended 2000 represents, for Class B shares, the 199-day
period ended September 30, 2000. Class B shares were not offered before March
15, 2000. The total return for Class B is based on activity during the period
and thus is not representative of a full year. Total returns exclude all sales
charges, including contingent deferred sales charges.
2 Based on average shares outstanding.
3 Annualized.
4 Represents portfolio turnover rate (equivalent for all share classes) for the
year ended September 30, 2000.
20
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."
21
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.
22
AMERICAN HIGH-INCOME TRUST / PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
FOR SHAREHOLDER SERVICES American Funds Service Company
800/421-0180
FOR RETIREMENT PLAN SERVICES Call your employer or plan administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900 Ext. 11
FOR 24-HOUR INFORMATION American FundsLine(R)
800/325-3590
American FundsLine OnLine(R)
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.
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 accountants' report
(in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The SAI contains
more detailed information on all aspects of the fund, including the fund's
financial statements and is incorporated by reference into this prospectus.
The Codes of Ethics describe the personal investing policies adopted by the
fund and the fund's investment adviser and its affiliated companies.
The Codes of Ethics and current SAI have been filed with the Securities and
Exchange Commission ("SEC"). 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. (202/942-8090) or on the EDGAR database on the SEC's Internet
Web site at http://www.sec.gov, or, after payment of a duplicating fee, via
e-mail request to [email protected] or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102.
HOUSEHOLD MAILINGS Each year you are automatically sent an updated
prospectus, annual and semi-annual report for the fund. In order to reduce the
volume of mail you receive, when possible, only one copy of these documents
will be sent to shareholders that are part of the same family and share the
same residential address.
If you would like to receive individual copies of these documents at no
charge, please call American Funds Service Company at 800/421-0180 or write to
the Secretary of the fund at 333 South Hope Street, Los Angeles, California
90071.
Investment Company File No. 811-5364
Printed on recycled paper
<PAGE>
AMERICAN HIGH-INCOME TRUST
Part B
Statement of Additional Information
December 1, 2000
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, 2000. 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 . . . . . . . . . . . . . . . . 11
Fund Trustees and Other Officers. . . . . . . . . . . . . . . . . . 12
Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . 19
Purchase of Shares. . . . . . . . . . . . . . . . . . . . . . . . . 24
Sales Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Sales Charge Reductions and Waivers . . . . . . . . . . . . . . . . 29
Individual Retirement Account (IRA) Rollovers . . . . . . . . . . . 32
Price of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Selling Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Shareholder Account Services and Privileges . . . . . . . . . . . . 35
Execution of Portfolio Transactions . . . . . . . . . . . . . . . . 37
General Information . . . . . . . . . . . . . . . . . . . . . . . . 38
Class A Share Investment Results and Related Statistics . . . . . . 39
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
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 lower quality, lower
rated debt securities, rated Ba or below by Moody's Investor Service, Inc.
or BB or below by Standard & Poor's Corporation or unrated but determined
to be of equivalent quality, and other similar securities including
preferred stock.
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.
Lower rated 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 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, lower rated bonds.
American High-Income Trust - Page 2
<PAGE>
Certain risk factors relating to "lower rated bonds" are discussed below.
SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES - Lower rated bonds may
be sensitive to adverse economic changes and political and corporate
developments and may be 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
lower rated bonds.
PAYMENT EXPECTATIONS - Lower rated 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 value and liquidity of lower rated bonds.
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.
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
American High-Income Trust - Page 3
<PAGE>
convertible securities. These securities may at times resemble equity more than
debt and vice versa. The risks of convertible preferred stock may be similar to
those of equity securities. Some types of convertible bonds or preferred stock
automatically convert into common stock. Non-convertible preferred stock 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 stock
generally move with changes in interest rates and the issuer's credit quality,
similar to the factors affecting debt securities.
Convertible bonds, convertible preferred stock, 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.
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, 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.
American High-Income Trust - Page 5
<PAGE>
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 the fund buys a security and obtains a simultaneous commitment from the
seller to repurchase the 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 direct obligations of the U.S. Treasury (such as Treasury bills, notes
and bonds). For these securities,
American High-Income Trust - Page 6
<PAGE>
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 (e.g.,
short-term notes up to 9 months in maturity issued by corporations, governmental
bodies or bank/ corporation sponsored conduits (asset backed commercial paper)),
(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
savings bank obligations (e.g., bank notes and 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.
LOAN PARTICIPATIONS AND ASSIGNMENTS - The fund may invest, subject to an overall
15% limit on loans, in loan participations or assignments. Loan participations
are loans or other direct debt instruments which are interests in amounts owed
by a corporate, governmental or other borrower to another party. They may
represent amounts owed to lenders or lending syndicates to suppliers of goods or
services, or to other parties. The fund will have the right to receive payments
of principal, interest and any fees to which it is entitled only from the lender
selling the participation and only upon receipt by the lender of the payments
from the borrower. In connection with purchasing participations, the fund
generally will have no right to enforce compliance by the borrower with the
terms of the loan agreement relating to loan, nor any rights of set-off against
the borrower, and the fund may not directly benefit from any collateral
supporting the loan in which it has purchased the participation. As a result,
the fund will assume the credit risk of both the borrower and the lender that is
selling the participation. In the event of the insolvency of the lender selling
a participation, a fund may be treated as a general creditor of the lender and
may not benefit from any set-off between the lender and the borrower.
When the fund purchases assignments from lenders it will acquire direct rights
against the borrower on the loan. However, because assignments are arranged
through private negotiations between potential assignees and potential
assignors, the rights and obligations acquired by a fund as the purchaser of an
assignment may differ from, and be more limited than, those held by the
assigning lender. Investments in loan participations and assignments present the
possibility that the fund could be held liable as a co-lender under emerging
legal theories of lender liability. In addition, if the loan is foreclosed, the
fund could be part owner of any collateral and could bear the costs and
liabilities of owning and disposing of the collateral. Because there is no
liquid market for such securities, the fund anticipates that such securities
could be sold only to a limited number of institutional investors. In addition,
loan participation and assignments are generally not rated by major rating
agencies and may not be protected by the securities laws.
American High-Income Trust - Page 7
<PAGE>
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 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.
American High-Income Trust - Page 8
<PAGE>
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 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 was 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:
American High-Income Trust - Page 9
<PAGE>
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);
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 policy(ies) 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.)
American High-Income Trust - Page 10
<PAGE>
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 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 has two classes of shares - Class A and Class B. The shares of each
class represent an interest in the same investment portfolio. Each class has
equal rights as to voting, redemption, dividends and liquidation, except that
each class bears different distribution expenses and may bear different transfer
agent fees and other expenses properly attributable to the particular class as
approved by the Board of Trustees. Class A and Class B shareholders have
exclusive voting rights with respect to the rule 12b-1 Plans adopted in
connection with the distribution of shares and on other matters in which the
interests of one class are different from interests in another class. Shares of
all classes of the fund vote together on matters that affect all classes in
substantially the same manner. Each class votes as a class on matters that
affect that class alone.
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
(INCLUDING VOLUNTARILY
DEFERRED
COMPENSATION/1/)
FROM THE FUND
POSITION DURING FISCAL YEAR
WITH PRINCIPAL OCCUPATION(S) DURING ENDED
NAME, ADDRESS AND AGE REGISTRANT PAST 5 YEARS SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
+* David C. Barclay President Senior Vice President and Director, none/3/
Age: 44 and Capital Research and Management
Trustee Company
-----------------------------------------------------------------------------------------------------------
Richard G. Capen, Jr. Trustee Corporate Director and author; $4,144
6077 San Elijo, Box 2494 former United States Ambassador to
Rancho Santa Fe, CA 92067 Spain; former Vice Chairman of the
Age: 65 Board, Knight-Ridder, Inc., former
Chairman and Publisher, The Miami
---------
Herald
------
-----------------------------------------------------------------------------------------------------------
H. Frederick Christie Trustee Private Investor. Former President $ 4,788/4/
P.O. Box 144 and Chief Executive Officer, The
Palos Verdes Estates, CA Mission Group (non-utility holding
90274 company, subsidiary of Southern
Age: 66 California Edison Company)
-----------------------------------------------------------------------------------------------------------
Diane C. Creel Trustee CEO and President, The Earth $ 3,820/4/
100 W. Broadway Technology Corporation
Suite 5000 (international consulting
Long Beach, CA 90802 engineering)
Age: 52
-----------------------------------------------------------------------------------------------------------
Martin Fenton Trustee Managing Director, Senior Resource $ 4,430/4/
4660 La Jolla Village Group LLC (development and
Drive management of senior living
Suite 725 communities)
San Diego, CA 92122
Age: 64
-----------------------------------------------------------------------------------------------------------
Leonard R. Fuller Trustee President, Fuller Consulting $4,860
4337 Marina City Drive (financial management consulting
Suite 841 ETN firm)
Marina del Rey, CA 90292
Age: 53
-----------------------------------------------------------------------------------------------------------
+* Abner D. Goldstine Trustee Senior Vice President and Director, none/3/
Age: 70 Capital Research and Management
Company
-----------------------------------------------------------------------------------------------------------
+** Paul G. Haaga, Jr. Chairman Executive Vice President and none/3/
Age: 51 of Director, Capital Research and
the Board Management Company
-----------------------------------------------------------------------------------------------------------
Richard G. Newman Trustee Chairman and CEO, $ 4,460/4/
3250 Wilshire Boulevard AECOM Technology Corporation
Los Angeles, CA 90010-1599 (architectural engineering)
Age: 66
-----------------------------------------------------------------------------------------------------------
Frank M. Sanchez Trustee President, The Sanchez Family $3,770
5234 Via San Delarro, #1 Corporation dba McDonald's
Los Angeles, CA 90022 Restaurants (McDonald's licensee)
Age: 57
-----------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL COMPENSATION
(INCLUDING VOLUNTARILY
DEFERRED
COMPENSATION/1/) FROM TOTAL NUMBER
ALL FUNDS MANAGED BY OF FUND
CAPITAL RESEARCH AND BOARDS
MANAGEMENT COMPANY ON WHICH
OR ITS AFFILIATES/2/ FOR THE TRUSTEE
NAME, ADDRESS AND AGE YEAR ENDED SEPTEMBER 30, 2000 SERVES/2/
---------------------------------------------------------------------------
<S> <C> <C>
+* David C. Barclay none/3/ 1
Age: 44
---------------------------------------------------------------------------
Richard G. Capen, Jr. $ 94,623 14
6077 San Elijo, Box 2494
Rancho Santa Fe, CA 92067
Age: 65
---------------------------------------------------------------------------
H. Frederick Christie $211,373/4/ 19
P.O. Box 144
Palos Verdes Estates, CA
90274
Age: 66
---------------------------------------------------------------------------
Diane C. Creel $40,320/4/ 12
100 W. Broadway
Suite 5000
Long Beach, CA 90802
Age: 52
---------------------------------------------------------------------------
Martin Fenton $130,673/4/ 16
4660 La Jolla Village
Drive
Suite 725
San Diego, CA 92122
Age: 64
---------------------------------------------------------------------------
Leonard R. Fuller $ 89,873 13
4337 Marina City Drive
Suite 841 ETN
Marina del Rey, CA 90292
Age: 53
---------------------------------------------------------------------------
+* Abner D. Goldstine none/3/ 12
Age: 70
---------------------------------------------------------------------------
+** Paul G. Haaga, Jr. none/3/ 15
Age: 51
---------------------------------------------------------------------------
Richard G. Newman $106,840/4/ 13
3250 Wilshire Boulevard
Los Angeles, CA 90010-1599
Age: 66
---------------------------------------------------------------------------
Frank M. Sanchez $ 47,903 12
5234 Via San Delarro, #1
Los Angeles, CA 90022
Age: 57
---------------------------------------------------------------------------
</TABLE>
American High-Income Trust - Page 12
<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 David C. Barclay, Abner D. Goldstine, and Paul G. Haaga, Jr. are affiliated
with the Investment Adviser and, accordingly, receive no compensation from the
fund.
4 Since the deferred compensation plan's adoption, the total amount of deferred
compensation accrued by the fund (plus earnings thereon) through the 2000
fiscal year for participating Trustees is as follows: Richard G. Capen, Jr.
($4,563), H. Frederick Christie ($9,541), Diane C. Creel ($9,578), Martin
Fenton ($16,650), Richard G. Newman ($35,080) and Frank M. Sanchez ($1,326).
Amounts deferred and accumulated earnings thereon are not funded and are
general unsecured liabilities of the fund until paid to the Trustees.
American High-Income Trust - Page 14
<PAGE>
OTHER OFFICERS
<TABLE>
<CAPTION>
POSITION(S) PRINCIPAL OCCUPATION(S) DURING
NAME AND ADDRESS AGE WITH REGISTRANT PAST 5 YEARS
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Michael J. Downer 45 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 38 Vice President Senior Vice President, Capital
11100 Santa Monica Research Company*
Blvd.
Los Angeles, CA 90025
-------------------------------------------------------------------------------
Julie F. Williams 52 Secretary Vice President - Fund Business
333 South Hope Street Management Group, Capital
Los Angeles, CA 90071 Research
and Management Company
-------------------------------------------------------------------------------
Anthony W. Hynes, Jr. 38 Treasurer Vice President - Fund Business
135 South State Management Group, Capital
College Blvd. Research
Brea, CA 92821 and Management Company
-------------------------------------------------------------------------------
Kimberly S. Verdick 36 Assistant Assistant Vice President - Fund
333 South Hope Street Secretary Business Management Group,
Los Angeles, CA 90071 Capital Research and Management
Company
-------------------------------------------------------------------------------
</TABLE>
* Company affiliated with Capital Research and Management Company.
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 $210 for each Board of Trustees meeting attended. In
addition, various Trustees participate with directors and trustees of certain
other funds in The American Funds Group in joint meetings of Contracts
Committees, Audit Committees and Nominating Committees; total fees for
attendance at these meetings, which are prorated among the participants in
proportion to the number of funds represented, are $2,510 for each meeting of
the Contracts Committee and $1,000 for each meeting of the Audit and Nominating
Committees.
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, 2000 the officers and Trustees 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 15
<PAGE>
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, Capital Research and Management
Company, 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.
The Investment Adviser is responsible for managing more than $300 billion of
stocks, bonds and money market instruments and serves over 11 million
shareholder accounts 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, 2001, 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 Plans 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 16
<PAGE>
The management fee is based upon the net assets of the fund and monthly gross
investment income. Gross investment income is determined in accordance with
generally accepted accounting principles and does not include gains or losses
from sales of capital assets.
The management fee is based on the following rates and month-end net asset
levels:
NET ASSET LEVEL
<TABLE>
<CAPTION>
RATE IN EXCESS OF UP TO
------------------------------------------------------------------------------
<S> <S> <S>
0.30% $ 0 $ 60,000,000
------------------------------------------------------------------------------
0.21 60,000,000 1,000,000,000
------------------------------------------------------------------------------
0.18 1,000,000,000 3,000,000,000
------------------------------------------------------------------------------
0.16 3,000,000,000
------------------------------------------------------------------------------
</TABLE>
The agreement also provides for fees based on monthly gross investment income at
the following rates:
MONTHLY GROSS INVESTMENT
<TABLE>
<CAPTION>
INCOME RATE IN EXCESS OF UP TO
------------------------------------------------------------------------------
<S> <S> <S>
3.00% $ 0 8,333,333
------------------------------------------------------------------------------
2.50 8,333,333 25,000,000
------------------------------------------------------------------------------
2.00 25,000,000
------------------------------------------------------------------------------
</TABLE>
Assuming net assets of $1.1 billion and gross investment income levels of 6%,
7%, 8%, 9% and 10%, management fees would be 0.37%, 0.40%, 0.42%, 0.44% and
0.46%, respectively.
The Investment Adviser has agreed that in the event the expenses of Class A
shares 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 on a 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. To the extent the fund's
management fee must be waived due to Class A share expense ratios exceeding the
above limit, management fees will be reduced similarly for all classes of shares
of the fund or other Class A fees will be waived in lieu of management fees. For
the fiscal years ended 2000, 1999, and 1998, the Investment Adviser received
advisory fees of $12,688,000, $12,363,000, and $10,751,000, 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.
American High-Income Trust - Page 17
<PAGE>
The fund has adopted Plans of Distribution (the "Plans"), pursuant to rule 12b-1
under the 1940 Act. The Principal Underwriter receives amounts payable pursuant
to the Plans (see below). In addition, the Principal Underwriter receives
revenues from sales of the fund's shares. For Class A shares, the Principal
Underwriter receives commission revenue consisting of that portion of the Class
A sales charge remaining after the allowances which it allows to investment
dealers. For Class B shares, the Principal Underwriter sells the rights to 12b-1
fees paid by the fund for distribution expenses to a third party and receives
the revenue remaining after compensating investment dealers for sales of Class B
shares. The fund also reimburses the Principal Underwriter for the immediate
service fees advanced and paid to dealers by the Principal Underwriter for sales
of Class B shares.
Commissions retained by the Principal Underwriter on sales of Class A shares
during the 2000 fiscal year amounted to $1,874,000 after allowance of $7,354,000
to dealers. During the fiscal years ended 1999 and 1998, the Principal
Underwriter retained $2,990,000 and $3,016,000, respectively, on sales of Class
A shares after an allowance of $12,281,000 and $12,527,000 to dealers,
respectively. Revenue retained and service fee reimbursements received by the
Principal Underwriter on sales of Class B shares during the 2000 fiscal year
amounted to $233,000 after compensation of $1,067,000 to dealers.
As required by rule 12b-1 and the 1940 Act, the Plans (together with the
Principal Underwriting Agreement) have 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 Plans or the Principal Underwriting Agreement. 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 Plans due to
present or past affiliations with the Investment Adviser and related companies.
Potential benefits of the Plans to the fund include 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 Plans. The Plans may not be
amended to increase materially the amount spent for distribution without
shareholder approval. Plan expenses are reviewed quarterly and the Plans must be
renewed annually by the Board of Trustees.
Under the Plans, the fund may expend up to 0.30% of its net assets annually for
Class A shares and 1.00% of its net assets annually for Class B shares 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. For Class A shares, these include up
to 0.25% in service fees for qualified dealers and dealer commissions and
wholesaler compensation on sales of shares exceeding $1 million purchased
without a sales charge (including purchases by employer-sponsored defined
contribution-type retirement plans investing $1 million or more or with 100 or
more eligible employees, rollover IRA accounts as described in "Individual
Retirement Account (IRA) Rollovers" below, and retirement plans, endowments or
foundations with $50 million or more in assets). For Class B shares, these
include 0.25% in service fees for qualified dealers and 0.75% in payments to the
Principal Underwriter for financing commissions paid to qualified dealers
selling Class B shares.
Commissions on sales of Class A shares exceeding $1 million (including purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under
American High-Income Trust - Page 18
<PAGE>
Section 401(a) of the Internal Revenue Code, including any "401(k)" plan with
100 or more eligible employees) in excess of the Class A 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, these commissions are not recoverable. During the 2000
fiscal year, the fund paid or accrued $6,916,000 for compensation to dealers or
the Principal Underwriter under the Plan for Class A shares and $68,000 under
the Plan for Class B shares. As of September 30, 2000, accrued and unpaid
distribution expenses for Class A and Class B shares were $472,000 and $20,000,
respectively.
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.
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 on Class A and Class B shares will be reinvested in shares of the fund
of the same class unless shareholders indicate in writing that they wish to
receive them in cash or in shares of the same class of other American Funds, as
provided in the prospectus.
TAXES - The fund has elected 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 100% of
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.
American High-Income Trust - Page 19
<PAGE>
To be treated as a regulated investment company under Subchapter M of the Code,
the fund must also (a) derive at least 90% of its gross income from dividends,
interest, payments with respect to securities loans and gains from the sale or
other disposition of securities or foreign currencies, or other income
(including, but no limited to, gains from options, futures or forward contracts)
derived with respect to the business of investing in such securities or
currencies, and (b) diversify its holdings so that, at the end of each fiscal
quarter, (i) at least 50% of the market value of the fund's assets is
represented by cash, U.S. Government securities and securities of other
regulated investment companies, and other securities (for purposes of this
calculation generally limited, in respect of any one issuer, to an amount not
greater than 5% of the market value of the fund's assets and 10% of the
outstanding voting securities of such issuer), and (ii) not more than 25% of the
value of its assets is invested in the securities of any one issuer (other than
U.S. Government securities or the securities of other regulated investment
companies), or two or more issuers which the fund controls and which are
determined to be engaged in the same or similar trades or businesses.
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 the fund for reinvestment, requiring federal income taxes to be
paid thereon by the fund, the fund intends 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.
American High-Income Trust - Page 20
<PAGE>
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 has 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 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.
Redemptions of shares, including exchanges for shares of another American Fund,
may result in tax consequences (gain or loss) to the shareholder.
If a shareholder exchanges or otherwise disposes of shares of the fund within 90
days of having acquired such shares, and if, as a result of having acquired
those shares, the shareholder subsequently pays a reduced sales charge for
shares of the fund, or of a different fund, the sales charge previously incurred
in acquiring the fund's shares will not be taken into account (to the extent
such previous sales charges do not exceed the reduction in sales charges) for
the purposes of determining the amount of gain or loss on the exchange, but will
be treated as having been incurred in the acquisition of such other funds. Also,
any loss realized on a redemption or exchange of shares of the fund will be
disallowed to the extent substantially identical shares are reacquired within
the 61-day period beginning 30 days before and ending 30 days after the shares
are disposed of.
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 during the
90-day period beginning on the date which is 45 days before the date on which
the shares become ex-dividend.
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 partial return of investment
capital upon the distribution, which will nevertheless be taxable to them.
American High-Income Trust - Page 21
<PAGE>
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.
In January of each year fund shareholders will receive a statement of the
federal income tax status of all distributions.
Dividend and interest income received by the fund from sources outside the U.S.
may be subject to withholding and other taxes imposed by such foreign
jurisdictions. Tax conventions between certain countries and the U.S. may reduce
or eliminate these foreign taxes, however. Most foreign countries do not impose
taxes on capital gains in respect of investments by foreign investors.
Under the Code, gains or losses attributable to fluctuations in exchange rates
which occur between the time the fund accrues receivables or liabilities
denominated in a foreign currency and the time the fund actually collects such
receivables, or pays such liabilities, generally are treated as ordinary income
or ordinary loss. Similarly, on disposition of debt securities denominated in a
foreign currency and on disposition of certain futures contracts, forward
contracts and options, gains or losses attributable to fluctuations in the value
of foreign currency between the date of acquisition of the security or contract
and the date of disposition are also treated as ordinary gain or loss. These
gains or losses, referred to under the Code as "Section 988" gains or losses,
may increase or decrease the amount of the fund's investment company taxable
income to be distributed to its shareholders as ordinary income.
If the fund invests in stock of certain passive foreign investment companies,
the fund may be subject to U.S. federal income taxation on a portion of any
"excess distribution" with respect to, or gain from the disposition of, such
stock. The tax would be determined by allocating such distribution or gain
ratably to each day of the fund's holding period for the stock. The distribution
or gain so allocated to any taxable year of the fund, other than the taxable
year of the excess distribution or disposition, would be taxed to the fund at
the highest ordinary income rate in effect for such year, and the tax would be
further increased by an interest charge to reflect the value of the tax deferral
deemed to have resulted from the ownership of the foreign company's stock. Any
amount of distribution or gain allocated to the taxable year of the distribution
or disposition would be included in the fund's investment company taxable income
and, accordingly, would not be taxable to the fund to the extent distributed by
the fund as a dividend to its shareholders.
American High-Income Trust - Page 22
<PAGE>
To avoid such tax and interest, the fund intends to elect to treat these
securities as sold on the last day of its fiscal year and recognize any gains
for tax purposes at that time. Under this election, deductions for losses are
allowable only to the extent of any prior recognized gains, and both gains and
losses will be treated as ordinary income or loss. The fund will be required to
distribute any resulting income, even though it has not sold the security and
received cash to pay such 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 23
<PAGE>
PURCHASE OF SHARES
<TABLE>
<CAPTION>
METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
-------------------------------------------------------------------------------
<S> <C> <C>
See "Purchase $50 minimum (except where a
Minimums" for initial lower minimum is noted under
investment minimums. "Purchase Minimums").
-------------------------------------------------------------------------------
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 Call 800/421-0180 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>
PURCHASE MINIMUMS - The minimum initial investment for all funds in The American
Funds Group, except the money market funds and the state tax-exempt funds, is
$250. The minimum initial investment for the money market funds (The Cash
Management Trust of America, The Tax--
American High-Income Trust - Page 24
<PAGE>
Exempt Money Fund of America, and The U.S. Treasury Money Fund of America) and
the state tax-exempt funds (The Tax-Exempt Fund of California, The Tax-Exempt
Fund of Maryland, and The Tax-Exempt Fund of Virginia) is $1,000. Purchase
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 SERVE AS
RETIREMENT PLAN INVESTMENTS. The minimum is $50 for additional investments
(except as noted above).
PURCHASE MAXIMUM FOR CLASS B SHARES - The maximum purchase order for Class B
shares for all American Funds is $100,000. For investments above $100,000 Class
A shares are generally a less expensive option over time due to sales charge
reductions or waivers.
FUND NUMBERS - Here are the fund numbers for use with our automated phone line,
American FundsLine/(R)/ (see description below):
<TABLE>
<CAPTION>
FUND FUND
NUMBER NUMBER
FUND CLASS A CLASS B
---- ------- -------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund/(R)/ . . . . . . . . . . . . . . . . . . . . 02 202
American Balanced Fund/(R)/ . . . . . . . . . . . . . . 11 211
American Mutual Fund/(R)/ . . . . . . . . . . . . . . . 03 203
Capital Income Builder/(R)/ . . . . . . . . . . . . . . 12 212
Capital World Growth and Income Fund/SM/ . . . . . . . 33 233
EuroPacific Growth Fund/(R)/ . . . . . . . . . . . . . 16 216
Fundamental Investors/SM/ . . . . . . . . . . . . . . . 10 210
The Growth Fund of America/(R)/ . . . . . . . . . . . . 05 205
The Income Fund of America/(R)/ . . . . . . . . . . . . 06 206
The Investment Company of America/(R)/ . . . . . . . . 04 204
The New Economy Fund/(R)/ . . . . . . . . . . . . . . . 14 214
New Perspective Fund/(R)/ . . . . . . . . . . . . . . . 07 207
New World Fund/SM/ . . . . . . . . . . . . . . . . . . 36 236
SMALLCAP World Fund/(R)/ . . . . . . . . . . . . . . . 35 235
Washington Mutual Investors Fund/SM/ . . . . . . . . . 01 201
BOND FUNDS
American High-Income Municipal Bond Fund/(R)/ . . . . . 40 240
American High-Income Trust/SM/ . . . . . . . . . . . . 21 221
The Bond Fund of America/SM/ . . . . . . . . . . . . . 08 208
Capital World Bond Fund/(R)/ . . . . . . . . . . . . . 31 231
Intermediate Bond Fund of America/SM/ . . . . . . . . . 23 223
Limited Term Tax-Exempt Bond Fund of America/SM/ . . . 43 243
The Tax-Exempt Bond Fund of America/(R)/ . . . . . . . 19 219
The Tax-Exempt Fund of California/(R)/* . . . . . . . . 20 220
The Tax-Exempt Fund of Maryland/(R)/* . . . . . . . . . 24 224
The Tax-Exempt Fund of Virginia/(R)/* . . . . . . . . . 25 225
U.S. Government Securities Fund/SM/ . . . . . . . . . . 22 222
MONEY MARKET FUNDS
The Cash Management Trust of America/(R)/ . . . . . . . 09 209
The Tax-Exempt Money Fund of America/SM/ . . . . . . . 39 N/A
The U.S. Treasury Money Fund of America/SM/ . . . . . . 49 N/A
___________
*Available only in certain states.
</TABLE>
American High-Income Trust - Page 25
<PAGE>
SALES CHARGES
CLASS A SALES CHARGES - The sales charges you pay when purchasing Class A shares
of 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 "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 $25,000 . . . . . . . . . 6.10% 5.75% 5.00%
$25,000 but less than $50,000 . . . 5.26 5.00 4.25
$50,000 but less than $100,000. . 4.71 4.50 3.75
BOND FUNDS
Less than $100,000 . . . . . . . . 3.90 3.75 3.00
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 $750,000 . 2.04 2.00 1.60
$750,000 but less than $1 million 1.52 1.50 1.20
$1 million or more . . . . . . . . . . none none (see below)
-----------------------------------------------------------------------------
</TABLE>
CLASS A 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 (CDSC) 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, and Individual
Retirement Account rollovers from retirement plan assets invested in the
American Funds (see "Individual Retirement Account (IRA) Rollovers" below) may
invest with no sales charge and are not subject to a contingent deferred sales
charge. Investments made by
American High-Income Trust - Page 26
<PAGE>
investors in certain qualified fee-based programs, and 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 CDSC. 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, Class A shares of the stock, stock/bond and bond funds may be sold
at net asset value to:
(1) current or retired directors, trustees, officers and advisory board members
of, and certain lawyers who provide services to, the funds managed by Capital
Research and Management Company, current or retired employees of Washington
Management Corporation, current or retired employees and partners of The Capital
Group Companies, Inc. and its affiliated companies, certain family members and
employees 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.
CONTINGENT DEFERRED SALES CHARGE ON CLASS A SHARES - A contingent deferred
sales charge of 1% applies to redemptions made from funds, other than the money
market funds, within 12 months following Class A share purchases of $1 million
or more made without an initial sales charge. 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 the longest
are assumed to be redeemed first for purposes of calculating this CDSC. The CDSC
may be waived in certain circumstances. See "CDSC Waivers for Class A Shares"
below.
DEALER COMMISSIONS ON CLASS A SHARES - The following commissions (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 defined contribution plan
investing $1 million or more, or with 100 or more eligible employees, IRA
rollover accounts (as described in "Individual Retirement Account (IRA)
Rollovers" below), and for purchases made at net asset value by certain
retirement plans, endowments and foundations with collective assets of $50
million or more: 1.00% on amounts of
American High-Income Trust - Page 27
<PAGE>
$1 million to $4 million, 0.50% on amounts over $4 million to $10 million, and
0.25% on amounts over $10 million.
CLASS B SALES CHARGES - Class B shares are sold without any initial sales
charge. However, a CDSC may be applied to shares you sell within six years of
purchase, as shown in the table below:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES CHARGE
ON SHARES SOLD WITHIN YEAR AS A % OF SHARES BEING SOLD
------------------------------------------------------------------------------
<S> <C>
1 5.00%
2 4.00%
3 4.00%
4 3.00%
5 2.00%
6 1.00%
</TABLE>
There is no CDSC on appreciation in share value above the initial purchase price
or on shares acquired through reinvestment of dividends or capital gain
distributions. In addition, the CDSC may be waived in certain circumstances.
See "CDSC Waivers for Class B shares" below. The CDSC is based on the original
purchase cost or the current market value of the shares being sold, whichever is
less. In processing redemptions of Class B shares, shares that are not subject
to any CDSC will be redeemed first and then shares that you have owned the
longest during the six-year period. CLASS B SHARES ARE NOT AVAILABLE TO CERTAIN
RETIREMENT PLANS, INCLUDING GROUP RETIREMENT PLANS SUCH AS 401(K) PLANS,
EMPLOYER-SPONSORED 403(B) PLANS, AND MONEY PURCHASE PENSION AND PROFIT SHARING
PLANS.
Compensation equal to 4% of the amount invested is paid by the Principal
Underwriter to dealers who sell Class B shares.
CONVERSION OF CLASS B SHARES TO CLASS A SHARES - Class B shares automatically
convert to Class A shares in the month of the eight-year anniversary of the
purchase date. The conversion of Class B shares to Class A shares after eight
years is subject to the Internal Revenue Service's continued position that the
conversion of Class B shares is not subject to federal income tax. In the event
the Internal Revenue Service no longer takes this position, the automatic
conversion feature may be suspended, in which event no further conversions of
Class B shares would occur while such suspension remained in effect. At your
option, Class B shares may still be exchanged for Class A shares on the basis of
relative net asset value of the two classes, without the imposition of a sales
charge or fee; however, such an exchange could constitute a taxable event for
you and, absent such an exchange, Class B shares would continue to be subject to
higher expenses for longer than eight years.
American High-Income Trust - Page 28
<PAGE>
SALES CHARGE REDUCTIONS AND WAIVERS
REDUCING YOUR CLASS A 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.
STATEMENT OF INTENTION - You may enter into a non-binding commitment to
purchase shares of a fund(s) 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 $25,000 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 use 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 below), including Class A shares held in a fee-based
arrangement, as well as purchases of Class B shares, and any individual
investments in American Legacy variable annuities and variable life
insurance policies (American Legacy, American Legacy II and American Legacy
III 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. The Statement will be considered completed if the shareholder
dies within the 13-month Statement period. Commissions will not be adjusted
or paid on the difference between the Statement amount and the amount
actually invested before the shareholder's death.
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 and
variable life
American High-Income Trust - Page 29
<PAGE>
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.
There will be no retroactive adjustments in sales charges on investments
made during the 13-month period.
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:
. 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 Class A and/or B shares
of two or more funds in The American Funds Group, as well as individual
holdings in 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 (or if
greater, the amount you invested less any withdrawals) of your existing
Class A and B 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
American High-Income Trust - Page 30
<PAGE>
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.
CDSC WAIVERS FOR CLASS A SHARES - Any CDSC on Class A shares may be waived in
the following cases:
(1) Exchanges (except if shares acquired by exchange are then redeemed within
12 months of the initial purchase).
(2) Distributions from 403(b) plans or IRAs due to death, post-purchase
disability or attainment of age 59-1/2.
(3) Tax-free returns of excess contributions to IRAs.
(4) Redemptions through systematic withdrawal plans (see "Automatic
Withdrawals" below), not exceeding 12% each year of the lesser of the original
purchase cost or the current market value of the shares being sold that would
otherwise be subject to a CDSC.
CDSC WAIVERS FOR CLASS B SHARES - Any CDSC on Class B shares may be waived in
the following cases:
(1) Redemptions through systematic withdrawal plans (see "Automatic
Withdrawals" below) not exceeding 12% each year of the lesser of the original
purchase cost or the current market value of the shares being sold that would
otherwise be subject to a CDSC. Shares not subject to a CDSC (such as shares
representing reinvestment of distributions) will be redeemed first and will
count toward the 12% limitation. If there are insufficient shares not subject
to a CDSC, shares subject to the lowest CDSC will be redeemed next until the 12%
limit is reached.
The 12% fee from CDSC limit is calculated on a pro rata basis at the time the
first payment is made and is recalculated thereafter on a pro rata basis at the
time of each SWP payment. Shareholders who establish a SWP should be aware that
the amount of that payment not subject to a CDSC may vary over time depending on
fluctuations in net asset value of their account. This privilege may be revised
or terminated at any time.
(2) Required minimum distributions taken from retirement accounts upon the
attainment of age 70-1/2.
(3) Distributions due to death or post-purchase disability of a shareholder. In
the case of joint tenant accounts, if one joint tenant dies, the surviving joint
tenant(s), at the time they notify the Transfer Agent of the decedent's death
and remove his/her name from the account, may redeem shares from the account
without incurring a CDSC. Redemptions subsequent to the notification to the
Transfer Agent of the death of one of the joint owners will be subject to a
CDSC.
American High-Income Trust - Page 31
<PAGE>
INDIVIDUAL RETIREMENT ACCOUNT (IRA) ROLLOVERS
Assets from an employer-sponsored retirement plan (plan assets) may be invested
in any class of shares of the American Funds (except as described below) through
an IRA rollover plan. All such rollover investments will be subject to the terms
and conditions for Class A and B shares contained in the fund's current
prospectus and statement of additional information. In the case of an IRA
rollover involving plan assets from a plan that offered the American Funds, the
assets may only be invested in Class A shares of the American Funds. Such
investments will be at net asset value and will not be subject to a contingent
deferred sales charge. Dealers who initiate and are responsible for such
investments will be compensated pursuant to the schedule applicable to
investments of $1 million or more (see "Dealer Commissions on Class A Shares"
above).
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 time of the determination of the net asset value will be entered at the next
calculated offering price. Prices which appear in the newspaper do not always
indicate 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 as of approximately 4:00 p.m. New York
time, which is the normal close of trading on the New York Stock Exchange each
day the Exchange is open. If, for example, the Exchange closes at 1:00 p.m., the
fund's share price would still be determined as of 4:00 p.m. New York time. 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.
American High-Income Trust - Page 32
<PAGE>
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.
SELLING SHARES
Shares are sold at the net asset value next determined after your request is
received in good order by the Transfer Agent. Sales of certain Class A and B
shares may be subject to deferred sales charges. 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. The Transfer Agent reserves the
right to require a signature guarantee on all redemptions.
American High-Income Trust - Page 33
<PAGE>
- 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).
- 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.
- Check writing is not available for Class B shares of The Cash
Management Trust.
If you sell Class B shares and request a specific dollar amount to be sold, we
will sell sufficient shares so that the sale proceeds, after deducting any
contingent deferred sales charge, equals the dollar amount requested.
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 of Class A or Class B shares without a sales charge in the Class A
shares of any fund in The American Funds Group within 90 days after the date of
the redemption or distribution (any contingent deferred sales charge on Class A
shares will be credited to your account). Redemption proceeds of shares
representing direct purchases in the money market funds are excluded. Proceeds
will
American High-Income Trust - Page 34
<PAGE>
be reinvested at the next calculated net asset value after your request is
received and accepted by the Transfer Agent.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - An automatic investment plan enables you to make
monthly or quarterly investments in 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. For
example, if the date you specified falls on a weekend or holiday, your money
will be invested on the next business day. 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.
AUTOMATIC REINVESTMENT - Dividends and capital gain distributions are reinvested
in additional shares of the same class at no sales charge unless you indicate
otherwise on the account application. You also 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") of the same share class 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 only exchange shares into other funds in The
American Funds Group within the same class. However, exchanges from Class A
shares of The Cash Management Trust of America may be made to Class B shares of
any other American Fund for dollar cost averaging purposes. Exchange purchases
are subject to the minimum investment requirements of the fund purchased and no
sales charge generally applies. However, exchanges
American High-Income Trust - Page 35
<PAGE>
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 "Selling 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 "American Funds Service
Company Service Areas" -- "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 Bank and 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 of the same class 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.
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 "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 - Purchase
Minimums" and "Purchase of Shares - Fund Numbers"), personal identification
number (generally 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),
American High-Income Trust - Page 36
<PAGE>
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, it and/or 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.
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.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the fiscal years ended September 30, 2000,
1999 and 1998, amounted to $5,763,000, $9,489,000 and $5,960,000, respectively.
American High-Income Trust - Page 37
<PAGE>
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 non-U.S. 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
$2,240,000 for Class A shares and $5,000 for Class B shares for the 2000 fiscal
year.
INDEPENDENT AUDITORS - Deloitte & Touche LLP, Two California Plaza, 350 South
Grand Avenue, Suite 200, Los Angeles, CA 90071, serves as the fund's 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 of Deloitte &
Touche LLP, independent auditors, given on the authority of said firm as experts
in accounting and auditing. The selection of the fund's independent auditors is
reviewed and determined annually by the Board of Trustees.
PROSPECTUSES AND REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on
September 30. Shareholders are provided updated prospectuses annually. In
addition, 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 prospectuses and
shareholder reports. To receive additional copies of a prospectus or report,
shareholders should contact the Transfer Agent.
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, including
securities in which the fund may invest from time to time. 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 38
<PAGE>
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE FOR CLASS A SHARES -- SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) . . . . . . . . . $12.93
Maximum offering price per share
(100/96.25 of net asset value per share,
which takes into account the fund's current maximum
sales charge). . . . . . . . . . . . . . . . . . . . . . . . $13.43
</TABLE>
CLASS A SHARE INVESTMENT RESULTS AND RELATED STATISTICS
The fund's yield was 9.89% based on a 30-day (or one month) period ended
September 30, 2000, 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 fund's one-year total return and five- and ten-year average annual total
return at the maximum offering price for the periods ended September 30, 2000
were 1.32%, 6.86% and 10.86%, respectively. The fund's one-year total return
and five- and ten-year average annual total return at net asset value for the
periods ended September 30, 2000 were 5.29%, 7.69% and 11.29%, respectively.
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.
In calculating average annual total return at the maximum offering price, the
fund assumes: (1) deduction of the maximum sales load of 3.75% 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. From time
to time, the fund may calculate investment results for Class B shares.
American High-Income Trust - Page 39
<PAGE>
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.
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).
The fund may also compare its investment results with the following:
(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 40
<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.
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>
<S> <C>
American High-Income Trust
Pie Chart
September 30, 2000
U.S. Corporate Bonds 71%
Non-U.S. Corporate Bonds 18%
Non-U.S. Government Bonds 2%
Stocks 2%
U.S. Treasuries 1%
Cash & Equivalents 6%
</TABLE>
<TABLE>
<S> <C>
Percent of
Ten Largest Holdings by Issuer Net Assets
Nextel Communications 5.69
VoiceStream Wireless 4.91
Clearnet Communications 2.52
Crown Castle International 2.49
NTL 2.10
Charter Communications Holdings 2.02
Fox/Liberty Networks 1.63
Container Corp. of America 1.61
Premcor 1.52
Allied Waste North America 1.44
<table/>
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
American High-Income Trust
Investment Portfolio,
September 30, 2000
Shares or
Principal Market Percent
Amount Value of Net
Bonds, Notes & Equity Securities (000) (000) Assets
Wireless Telecommunication
Services - 21.80%
Nextel Communications, Inc.:
0%/9.75% 2007(1) $ 10,000 $7,800
0%/10.65% 2007(1) 18,750 15,375
0%/9.95% 2008(1) 24,675 18,753
12.00% 2008 3,500 3,745
Series D, 13.00% exchangeable 18,498 shares 19,830
preferred, redeemable 2009(2),(3)
Series E, 11.25% exchangeable 27,719 27,165
preferred, redeemable 2010(2),(3)
Nextel Partners, Inc.:
0%/14.00% 2009(1) $ 27,882 19,517
11.00% 2010(4) 10,750 10,831
Nextel International, Inc.:
0%/12.125% 2008(1) 29,250 18,939
12.75% 2010(4) 2,000 1,965
McCaw International, 21,125 16,266 5.69%
Ltd. 0%/13.00% 2007(1)
VoiceStream Wireless Corp.:
10.375% 2009 62,350 67,026
0%/11.875% 2009(1) 58,775 42,318
Omnipoint Corp.:
11.50% 2009(4) 13,050 14,485
7.00% convertible preferred 85,000 shares 14,280 4.91
Clearnet Communications Inc.:(1)
0%/11.75% 2007 C$ 70,125 41,009
0%/10.40% 2008 50,325 28,552
0%/10.125% 2009 $ 1,600 1,272 2.52
Crown Castle International Corp.:
0%/10.625% 2007(1) 21,250 16,575
12.75% senior exchangeable 21,407 shares 21,836
preferred 2010(2),(3)
0%/10.375% 2011(1) $ 21,500 13,867
10.75% 2011 8,750 8,925
0%/11.25% 2011(1) 13,500 8,910 2.49
PageMart Wireless, Inc.:
15.00% 2005 15,250 14,373
0%/11.25% 2008(1) 61,010 24,404 1.38
Dobson Communications Corp. 12.25% 31,428 shares 28,128 1.00
exchangeable preferred,
redeemable 2008(2),(3)
Leap Wireless International, Inc.:
12.50% 2010 $ 9,500 7,172
0%/14.50% 2010(1) 66,750 20,526 .98
Centennial Cellular Corp. 10.75% 2008 26,250 25,594 .91
TeleCorp PCS Inc.:
0%/11.625% 2009(1) 4,500 3,037
10.625% 2010(4) 13,000 13,130 .57
PTC International Finance BV 19,100 13,418 .48
0%/10.75% 2007(1)
Comunicacion Celular SA 16,000 12,520 .44
0%/14.125% 2005(1)
Dobson/Sygnet Communications Co. 5,500 5,527 .20
12.25% 2008
Cellco Finance NV:
12.75% 2005 3,250 3,226
15.00% 2005 1,590 1,642 .17
Teletrac, Inc.:(2),(4),(5)
9.00% 2004 1,626 1,301
12.00% 2004 98 78 .05
Nuevo Grupo Iusacell, SA de CV 380 404 .01
14.25% 2006
613,721 21.80
Media - 13.71%
Charter Communications Holdings, LLC:
8.25% 2007 6,000 5,430
10.00% 2009 6,000 5,880
0%/11.75% 2010(1) 7,500 4,350
0%/9.92% 2011(1) 61,000 35,380
Avalon Cable Holdings LLC 8,625 5,800 2.02
0%/11.875% 2008(1)
Fox/Liberty Networks, LLC,
FLN Finance, Inc.:
8.875% 2007 17,000 17,255
0%/9.75% 2007(1) 34,000 28,560 1.63
American Media Operations, Inc. 25,680 25,423 .90
10.25% 2009
Adelphia Communications Corp.:
9.25% 2002 6,000 5,955
10.50% 2004 8,500 8,489
Series B, 13.00% 2009(3) 20,000 shares 1,980
Century Communications Corp. 0% 2003 $ 4,565 3,481 .71
Radio One, Inc.:
12.00% 2004 4,750 4,999
6.50% TIDES convertible 24,350 shares 14,549 .69
preferred 2005(3),(4)
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 $ 6,450 6,643
8.00% 2008 8,500 8,638
Capstar Broadcasting Partners, Inc. 2,514 2,891 .65
12.00% 2009(2)
Cumulus Media Inc.:
10.375% 2008 8,250 7,012
13.75% preferred 2009(2) 12,159 shares 9,241 .58
Telemundo Holdings, Inc., Series B, $ 22,950 16,065 .57
0%/11.50% 2008(1)
TransWestern Publishing Co. LLC 16,050 15,970 .57
9.625% 2007
Young Broadcasting Inc.:
10.125% 2005 9,115 9,206
9.00% 2006 4,250 4,101
Series B, 8.75% 2007 2,000 1,897 .54
Sun Media Corp. 9.50% 2007 15,025 15,006 .53
ACME Intermediate Holdings, LLC, 12,689 8,755
Series B, 0%/12.00% 2005(1)
ACME Television, LLC, Series B, 5,750 5,470 .50
0%/10.875% 2004(1)
Gray Communications Systems, Inc. 13,870 13,905 .49
10.625% 2006
Lenfest Communications, Inc.:
8.375% 2005 5,000 5,238
7.625% 2008 6,750 6,706 .42
Antenna TV SA 9.00% 2007 12,450 11,392 .40
Citadel Broadcasting Co.:
10.25% 2007 3,000 3,120
Series B, 13.25% exchangeable 53,061 shares 5,837 .32
preferred, redeemable 2009(2)
Globo Comunicacoes E Participacoes SA:
10.50% 2006 $ 6,230 5,576
10.625% 2008 3,830 3,342 .32
Big City Radio, Inc. 0%/11.25% 2005(1) 14,750 8,112 .29
Fox Family Worldwide, Inc.:
9.25% 2007 4,000 3,830
0%/10.25% 2007(1) 4,000 2,910 .24
Polestar Corp. PLC 10.50% 2008 pound 5,750 6,365 .23
Cablevision Industries Corp. $ 6,000 6,150 .22
9.875% 2013
STC Broadcasting, Inc. 11.00% 2007 4,000 3,940 .14
RBS Participacoes SA 11.00% 2007 4,500 3,814 .14
TeleWest PLC 9.625% 2006 4,000 3,720 .13
Muzak Holdings LLC 0%/13.00% 2010(1) 6,500 3,672 .13
Multicanal Participacoes SA, 2,900 2,994 .11
Series B, 12.625% 2004
Carmike Cinemas, Inc., Series B, 8,450 2,366 .08
9.375% 2009(6)
TVN Entertainment Corp., Series B, 11,750 2,350 .08
14.00% 2008
V2 Music Holdings PLC 6.50% 2012(5) 7,873 2,126 .08
385,891 13.71
Hotels, Restaurants & Leisure - 8.88%
Boyd Gaming Corp.:
9.25% 2003 25,000 24,719
9.50% 2007 10,860 10,249 1.24
Premier Parks Inc.:
9.25% 2006 5,375 5,005
9.75% 2007 17,625 16,792
0%/10.00% 2008(1) 10,500 7,114
Six Flags Entertainment Corp. 2,250 2,182 1.10
8.875% 2006
Horseshoe Gaming Holding Corp.,
Series B:
9.375% 2007 1,690 1,677
8.625% 2009 26,000 25,480 .97
William Hill Finance PLC 10.625% 2008 pound 15,950 24,006 .85
Jupiters Ltd. 8.50% 2006 $ 19,180 18,461 .66
MGM Mirage, Inc. 8.50% 2010 9,000 8,993
Mirage Resorts, Inc.:
6.625% 2005 1,950 1,849
6.75% 2007 5,000 4,560
6.75% 2008 2,250 2,040 .62
International Game Technology:
7.875% 2004 11,750 11,427
8.375% 2009 6,000 5,880 .62
KSL Recreation Group, Inc. 10.25% 2007 17,005 16,665 .59
Harrah's Operating Co., Inc. 13,725 13,176 .47
7.875% 2005
Florida Panthers Holdings, Inc. 11,000 10,615 .38
9.875% 2009
Station Casinos, Inc. 9.875% 2010(4) 9,500 9,571 .34
Hard Rock Hotel, Inc., Series B, 7,219 6,741 .24
9.25% 2005
Sun International Hotels Ltd., Sun
International North America, Inc.:
8.625% 2007 2,750 2,544
9.00% 2007 4,250 4,016 .23
Hollywood Casino Corp. 11.25% 2007 4,940 5,150 .18
AMF Bowling Worldwide, Inc.:
10.875% 2006(6) 4,250 967
0%/12.25% 2006(1),(6) 12,043 2,288
0% convertible debentures 2018(4),(6) 10,508 105 .12
CKE Restaurants, Inc. 9.125% 2009 4,620 2,841 .10
Eldorado Resorts LLC 10.50% 2006 2,500 2,494 .09
Royal Caribbean Cruises Ltd.:
7.00% 2007 1,400 1,233
6.75% 2008 1,300 1,121 .08
249,961 8.88
Diversified Telecommunication
Services - 8.54%
Comcast UK Cable Partners Ltd. 28,000 26,460
0%/11.20% 2007(1)
NTL Inc.:
12.75% 2005 1,000 1,022
0%/9.75% 2008(1) 10,000 6,200
0%/10.75% 2008(1) pound 14,750 13,075
NTL Communications Corp. $ 8,000 7,830
11.875% 2010(4)
Diamond Holdings PLC 9.125% 2008 5,000 4,550 2.10
COLT Telecom Group PLC:
0%/12.00% 2006(1) 26,250 23,887
8.875% 2007 DM 19,000 8,235
7.625% 2008 9,250 3,758 1.28
Allegiance Telecom, Inc.:
0%/11.75% 2008(1) $ 28,000 18,760
12.875% 2008 6,925 6,856 .91
VersaTel Telecom International NV:
4.00% convertible 2005 euro 14,825 10,571
11.875% 2009 5,000 3,863
11.25% 2010(7) 6,750 5,126 .70
NEXTLINK Communications, Inc.:
9.625% 2007 $ 4,000 3,560
0%/12.125% 2009(1) 11,975 6,407
0%/12.25% 2009(1) 11,750 6,639
14.00% preferred 2009(2),(3) 29,748 shares 1,354 .64
CFW Communications Co., units, $ 19,000 17,195 .61
13.00% 2010(4)
Viatel, Inc.:
11.15% 2008 DM 2,500 553
11.25% 2008 $ 8,075 4,118
0%/12.40% 2008(1) DM 21,500 2,669
0%/12.50% 2008(1) $ 31,875 7,969
11.50% 2009 875 437 .56
KMC Telecom Holdings, Inc. 22,500 7,875 .28
0%/12.50% 2008(1)
Maxcom Telecomunicaciones, SA de CV 12,100 6,897 .24
13.75% 2007
IXC Communications, Inc., 12.50% 5,820 shares 5,936 .21
exchangeable preferred,
redeemable 2009(3)
Mpower Holding Corp. 13.00% 2010 $ 9,000 5,580 .20
Level 3 Communications, Inc. euro 6,250 5,077 .18
11.25% 2010
Dobson Communications Corp. $ 5,000 4,850 .17
10.875% 2010
Hyperion Telecommunications, Inc., 5,000 4,062 .14
Series B, 0%/13.00% 2003(1)
Global TeleSystems Group, Inc. 6,000 3,000 .11
9.875% 2005
Piltel International Holding Corp. 5,875 2,056 .07
1.75% convertible 2006
Teligent, Inc. 11.50% 2007 4,000 1,800 .06
IMPSAT Corp. 12.375% 2008 2,000 1,565 .06
Netia Holdings BV 0%/11.25% 2007(1) 1,000 660 .02
240,452 8.54
Containers & Packaging - 4.35%
Container Corp. of America:
10.75% 2002 7,250 7,350
9.75% 2003 32,250 32,331
Series A, 11.25% 2004 5,500 5,562 1.61
Graham Packaging Co.:
8.75% 2008 21,000 17,850
0%/10.75% 2009(1) 18,500 9,712 .98
Printpack, Inc.:
Series B, 9.875% 2004 5,750 5,707
10.625% 2006 18,930 18,267 .85
Tekni-Plex, Inc. 12.75% 2010(4) 13,625 13,284 .47
Anchor Glass Container Corp. 10,000 7,500 .27
11.25% 2005
Packaging Corp. of America, Series B, 4,750 4,797 .17
9.625% 2009
122,360 4.35
Oil & Gas - 3.85%
Premcor USA Inc. (formerly Clark
USA, Inc.):
10.875% 2005 14,500 9,425
11.50% senior exchangeable 21,210 shares 4,878
preferred 2009(2),(3),(5)
Premcor Refining Group Inc. (formerly
Clark Refining & Marketing, Inc.):
8.375% 2007 $ 6,250 5,250
8.875% 2007 4,500 3,195
8.625% 2008 6,920 5,813
Premcor Refining Group, Inc. 9.50% 15,625 14,160 1.52
2004 (formerly Clark Oil & Refining
Corp.)
Cross Timbers Oil Co.:
Series B, 9.25% 2007 10,775 10,990
8.75% 2009 15,620 15,308 .94
Pogo Producing Co.:
8.75% 2007 16,500 16,087
10.375% 2009 6,500 6,809 .81
Petrozuata Finance, Inc., Series B, 11,600 9,599 .34
8.22% 2017
HS Resources, Inc. 9.25% 2006 5,100 5,138 .18
Newfield Exploration Co., Series B, 1,750 1,623 .06
7.45% 2007
108,275 3.85
Commercial Services & Supplies - 3.58%
Allied Waste North America, Inc.:
7.625% 2006 500 449
Series B, 10.00% 2009 46,200 40,078 1.44
USA Waste Services, Inc.:
4.00% 2002 12,000 11,280
6.50% 2002 2,000 1,933
WMX Technologies, Inc.:
6.375% 2003 7,500 7,104
7.10% 2026 3,500 3,386
Waste Management, Inc.:
7.70% 2002 5,700 5,644
6.875% 2009 1,500 1,361 1.09
KinderCare Learning Centers, Inc., 12,500 11,594 .41
Series B, 9.50% 2009
Iron Mountain Inc.:
10.125% 2006 3,000 3,052
8.75% 2009 5,370 5,209 .30
Stericycle, Inc., Series B, 5,250 5,565 .20
12.375% 2009
Protection One Alarm Monitoring, Inc. 5,166 4,029 .14
13.625% 2005(7)
Safety-Kleen Services, Inc. 7,000 70 .00
9.25% 2008(5),(6)
100,754 3.58
Banks - 2.70%
Fuji JGB Investment LLC, Series A, 25,500 24,977 .89
9.87% noncumulative preferred
(undated)(7)
Sakura Capital Funding 14,000 13,720 .49
7.63% (undated)(7)
Komercni Finance BV 9,950 9,627 .34
9.00%/10.75% 2008(2),(7)
HSBC Capital Funding LP, Series 1, 6,000 6,354 .23
9.547% noncumulative preferred
(undated)(7)
Superior Financial Corp. 8.65% 2003(4) 6,000 5,460 .19
TB Finance (Cayman) Ltd. 2.75% yen 650,000,000 shares 4,801 .17
convertible preferred 2004(3)
BNP U.S. Funding LLC, Series A, 7.738% $ 4,750 4,480 .16
noncumulative preferred (undated)(7)
BankUnited Capital Trust, BankUnited 4,500 3,352 .12
Financial Corp., 10.25% 2026
IBJ Preferred Capital Co. LLC, 3,500 3,219 .11
Series A, 8.79% noncumulative
preferred(7)
75,990 2.70
Semiconductor Equipment &
Products - 2.48%
Micron Technology, Inc. 6.50% 2005(4) 34,000 28,900 1.03
Fairchild Semiconductor Corp.:
10.125% 2007 5,250 5,250
10.375% 2007 8,737 8,824 .50
Advanced Micro Devices, Inc. 6.00% 8,000 10,602 .38
convertible subordinated notes 2005
Adaptec, Inc. 4.75% convertible 10,000 8,366 .30
subordinated notes 2004
SCG Holding Corp. 12.00% 2009 5,486 5,801 .20
Hyundai Semiconductor America, 2,500 2,131 .07
Inc. 8.625% 2007
69,874 2.48
Diversified Financials - 2.47%
Golden State Holdings, Inc. 7.00% 2003 4,500 4,285
GS Escrow Corp. 7.125% 2005 17,000 15,696 .71
Advanta Corp.:
Series B, 7.00% 2001 5,635 5,377
Series D, 6.814% 2002 10,000 8,924
Series D, 6.98% 2002 2,000 1,792 .57
First Pacific Co. Ltd. 2.00% 12,000 13,754 .49
convertible 2002
Providian Financial Corp. 15,000 11,166 .40
9.525% 2027(4)
Swire Pacific Offshore Financing Ltd. 351,648 shares 8,000 .28
9.33% cumulative guaranteed perpetual
capital securities
CEI Citicorp Holdings SA 11.25% 2007 ARP 500 482 .02
69,476 2.47
Multiline Retail - 2.40%
J.C. Penney Co., Inc.:
7.375% 2004 $ 10,700 9,486
7.05% 2005 5,000 4,224
7.60% 2007 2,000 1,617
7.375% 2008 8,390 6,462
6.875% 2015 3,250 2,093
9.75% 2021 2,000 1,662
7.125% 2023 650 394
7.625% 2097 7,875 4,681 1.09
Kmart Financing Trust 7.75% 2016 136,025 shares 4,234
DR Securitized Lease Trust, $ 9,855 7,221
pass-through certificates, Series 1994
K-2, 9.35% 2019(8)
Kmart Corp. 9.78% 2020 10,500 8,569 .71
J. Crew Operating Corp. 10.375% 2007 8,000 7,190 .25
Levi Strauss & Co.:
6.80% 2003 4,025 3,381
7.00% 2006 4,000 3,120 .23
Dillard's, Inc.:
6.43% 2004 1,600 1,297
6.30% 2008 2,900 2,071 .12
67,702 2.40
Paper & Forest Products - 1.80%
Kappa Beheer BV:
10.625% 2009 euro 17,750 16,222
0%/12.50% 2009(1) 26,250 15,762 1.14
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 $ 7,900 6,103
10.00% 2007 5,200 2,509 .31
Advance Agro Capital BV 13.00% 2007 7,125 5,130 .18
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002 5,000 3,312
10.75% 2007 2,925 1,441 .17
APP International Finance Co. BV 275 133 .00
11.75% 2005
50,612 1.80
Electrical Equipment - 1.65%
Zilog, Inc. 9.50% 2005 30,300 25,755 .92
SpectraSite Holdings, Inc.,
Series B:(1)
0%/12.00% 2008 8,500 5,568
0%/11.25% 2009 24,375 13,284
0%/12.875% 2010 3,500 1,785 .73
46,392 1.65
Health Care Providers &
Services - 1.53%
Paracelsus Healthcare Corp. 35,825 14,330 .51
10.00% 2006(6)
Omnicare, Inc. 5.00% convertible 17,500 13,147 .47
debentures 2007
Columbia/HCA Healthcare Corp. 12,250 11,515 .41
6.91% 2005
Concentra Operating Corp. 13.00% 2009 3,000 2,655 .09
Integrated Health Services,
Inc.:(5),(6)
5.75% convertible debentures 2001 11,000 1
10.25% 2006(7) 11,250 113
Series A, 9.50% 2007 37,500 375
Series A, 9.25% 2008 46,250 463 .03
Sun Healthcare Group, Inc.:(6)
Series B, 9.50% 2007(5) 24,875 249
9.375% 2008(4),(5) 19,110 191 .02
Mariner Health Group, Inc. 13,625 136 .00
9.50% 2006(5),(6)
43,175 1.53
Beverages - 1.21%
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 9,750 9,701
8.75% 2003 8,150 8,099 .63
Delta Beverage Group, Inc. 9.75% 2003 15,735 16,128 .58
33,928 1.21
Electric Utilities - 0.93%
AES Drax Holdings Ltd. 10.41% 2020 17,855 18,722 .66
TNP Enterprises, Inc. 10.25% 2010(4) 7,250 7,540 .27
26,262 .93
Couriers - 0.70%
Eletson Holdings Inc. 9.25% 2003 18,485 17,746 .63
Gearbulk Holding Ltd. 11.25% 2004 2,000 2,013 .07
19,759 .70
Internet Software & Services - 0.70%
GT Group Telecom Inc. 0%/13.25% 2010(1) 29,250 14,625 .52
Exodus Communications Inc. 5,000 5,038 .18
11.625% 2010(4)
19,663 .70
Household Durables - 0.69%
Boyds Collection, Ltd., Series B, 8,803 8,407 .30
9.00% 2008
Salton/Maxim Housewares, Inc. 8,425 8,299 .29
10.75% 2005
Home Products International, 3,250 1,983 .07
Inc. 9.625% 2008
WestPoint Stevens Inc. 7.875% 2005 1,000 865 .03
19,554 .69
Aerospace & Defense - 0.58%
EarthWatch Inc.:(5)
0%/12.50% 2005(1),(4) 8,640 6,321
Series B, 7.00% convertible 777,665 shares 2,500
preferred 2009(2),(3)
Series C, 8.50% convertible 373,613 590 .33
preferred 2009(2),(3),(4)
Loral Orion Network Systems, $ 11,725 6,918 .25
Inc. 11.25% 2007
16,329 .58
Other - 3.89%
Chevy Chase Preferred Capital 214,000 shares 11,503
Corp. 10.375%
Chevy Chase Bank, FSB 9.25% 2008 $ 2,000 1,845 .47
Ingram Micro Inc. 0% convertible 26,500 10,070 .36
debentures 2018
Gramercy Place Insurance Ltd., 7,834 7,780 .28
Series 1998-A, Class C-2,
8.95% 2002(4),(8)
Fage Dairy Industry SA 9.00% 2007 9,250 7,030 .25
Flextronics International Ltd. 6,500 6,338 .23
8.75% 2007
Friendly Ice Cream Corp. 10.50% 2007 7,875 6,300 .22
SBA Communications Corp. 8,250 6,229 .22
0%/12.00% 2008(1)
McDermott Inc. 9.375% 2002 6,775 6,098 .22
Doe Run Resources Corp., Series B, 9,250 4,764 .17
11.25% 2005
Chase Commercial Mortgage Securities 5,000 4,438 .16
Corp., Series 1998-2, Class E,
6.39% 2030(8)
American Standard Inc. 8.25% 2009(4) 4,500 4,410 .16
Sunglass Hut International, Inc. 5,500 4,235 .15
5.25% convertible debentures 2003
Kaiser Aluminum & Chemical Corp. 4,500 4,005 .14
12.75% 2003
Federal-Mogul Corp.:
7.50% 2004 3,500 1,470
7.375% 2006 2,500 975
7.50% 2009 2,500 950 .12
USAir, Inc., pass-through trust, 3,150 2,898 .10
Series 1993-A3, 10.375% 2013(8)
Freeport-McMoRan Copper & Gold Inc.:
7.50% 2006 100 59
7.20% 2026 3,825 2,390 .09
GMAC Commercial Mortgage Securities, 2,500 2,303 .08
Inc., Series 1997-C2, Class E,
7.624% 2011(8)
Actuant Corp. 13.00% 2009(4) 2,000 2,005 .07
Fred Meyer, Inc.:
7.375% 2005 1,000 986
7.45% 2008 1,000 967 .07
Tenneco Automotive Inc. 11.625% 2009 3,000 1,920 .07
Overseas Shipholding Group, Inc.:
8.00% 2003 1,750 1,705
8.75% 2013 125 120 .06
New World Pasta Co. 9.25% 2009 2,750 1,650 .06
International Shipholding Corp., 1,100 971 .03
Series B, 7.75% 2007
Copamex Industrias, SA de CV, 995 968 .03
Series B, 11.375% 2004
Key Plastics Holdings, Inc. 9,650 869 .03
10.25% 2007(6)
DGS International Finance Co. BV 4,050 618 .02
10.00% 2007
Reliance Industries Ltd. 10.50% 2046 500 453 .02
BREED Technologies, Inc. 24,500 245 .01
9.25% 2008(5),(6)
109,567 3.89
U.S. Treasury Notes and Bonds - 1.19%
7.50% November 2001 20,000 20,256
6.25% February 2003 6,765 6,803
7.50% February 2005 6,000 6,361 1.19
33,420 1.19
Non U.S. Government Obligations - 1.88%
United Mexican States Government:
0% 2003(5) 768 - -
Eurobonds:
Global 11.375% 2016 7,695 8,965
Series A, units, 7.313% 2019(7) 500 518
Global 11.50% 2026 2,625 3,193 .45
Panama (Republic of):
Interest Reduction Bond 4.50% 2014(7) 12,400 9,920
Past Due Interest Eurobond 555 443
7.75% 2016(7)
10.75% 2020 415 408
8.875% 2027 2,000 1,675 .44
Capitalization Interest ADD TO FGP119
Brazil (Federal Republic of):
7.438% 2009(7) 1,625 1,427
14.50% 2009 2,750 3,032
Bearer 8.00% 2014(2) 7,034 5,398 .35
Capitalization Interest ADD TO 35B06
Russian Federation 12.75% 2028 6,250 5,456 .19
Turkey (Republic of) 12.375% 2009 3,675 3,780 .13
Argentina (Republic of):
Series E, 0% 2003 1,500 1,103
11.75% 2009 270 255
11.375% 2017 2,000 1,797 .11
Venezuela (Republic of):
Front Loaded Interest Reduction Bond, 667 565
Series A, 7.625% 2007(7)
Eurobond 7.875% 2007(7) 1,429 1,228
9.25% 2027 510 347 .08
South Africa (Republic of) 13.00% 2010 ZAR 13,600 1,829 .07
Bulgaria (Republic of), Front Loaded $ 1,770 1,289 .05
Interest Reduction Bond 3.00% 2012(7)
Philippines (Republic of) 9.875% 2019 500 411 .01
53,039 1.88
Number of
Shares
Common Stocks & Warrants - 2.22%
Price Communications Corp.(3) 960,382 18,787 .67
Nortel Inversora SA, preferred, 822,224 8,814 .31
Class A (ADR) (Argentina)(5)
VoiceStream Wireless Corp.(3) 49,393 5,733 .20
Felcor Lodging Trust Inc. 225,000 5,203 .19
Boyds Collection, Ltd.(3) 700,000 5,163 .18
Infinity Broadcasting Corp.(3) 106,800 3,524 .13
Global TeleSystems, Inc.(3) 750,000 3,422 .12
Clear Channel Communications, Inc.(3) 51,012 2,882 .10
Leap Wireless International, Inc., 66,750 1,942 .07
warrants, expire 2010(3),(5)
ACME Communications, Inc.(3) 213,145 1,918 .07
GT Group Telecom Inc., warrants, 29,250 1,610 .06
expire 2010 (Canada) (3),(5)
WorldCom, Inc. (formerly MCI 31,500 957 .03
WorldCom, Inc.)(3)
Cumulus Media Inc., Class A(3) 100,000 613 .02
Viatel, Inc.(3) 58,503 600 .02
Radio One, Inc.(3) 44,000 311
Radio One, Inc., Class A(3) 22,000 183 .02
Allegiance Telecom, Inc., warrants, 5,000 290 .01
expire 2008(3),(4),(5)
NTL Inc., warrants, expire 6,412 279 .01
2008(3),(4),(5)
Teletrac, Inc.(3),(4),(5) 1,045,551 157
Teletrac Holdings, Inc., warrants, 384,986 38 .01
expire 2004(3),(5)
KMC Telecom Holdings Inc., warrants, 22,500 23 .00
expire 2008(3),(4)
McCaw International, Ltd., warrants, 8,500 21 .00
expire 2007(3),(4),(5)
Comunicacion Celular SA, Class B, 15,000 2 .00
warrants, expire 2003 (Colombia)(3),(5)
Globalstar Telecommunications Ltd., 2,000 2 .00
warrants, expire 2004(3),(5)
Protection One Alarm Monitoring, 30,400 2 .00
Inc., warrants, expire 2005(3),(4),(5)
Maxcom Telecomunicaciones, SA de CV, 12,100 - -
warrants, expire 2007 (Mexico)(3),(5)
Tultex Corp.:(3),(5)
Warrants, expire 2007 81,220 - -
Warrants, expire 2007 40,610 - -
TVN Entertainment Corp., warrants, 11,750 - -
expire 2008(3),(4),(5)
V2 Music Holdings PLC (United
Kingdom):(3),(5)
Warrants, expire 2000 2,250 - -
Warrants, expire 2008 10,905 - -
62,476 2.22
Principal
Amount
(000)
Miscellaneous
Investment securities in initial 11,183 .40
period of acquisition
Total Bonds, Notes & Equity Securities 2,649,815 94.13
(cost: $3,007,056,000)
Short-Term Securities
Corporate Short-Term Notes - 3.15%
Park Avenue Receivables Corp.:
6.51% due 10/6/2000 $10,000 9,989
6.51% due 10/20/2000 11,000 10,960 .75
CIT Group Inc. 6.70% due 10/2/00 15,600 15,591 .55
Merck & Co. Inc. 6.47% due 10/16/00 15,000 14,957 .53
USAA Capital Corp. 6.47% due 10/30/00 11,600 11,537 .41
Preferred Receivables Funding Corp. 10,000 9,955 .35
6.50% due 10/25/00
Gannett Co. 6.48% due 11/10/00 7,600 7,544 .27
Corporate Asset Funding Co. Inc. 5,000 4,989 .18
6.50% due 10/12/00
Associates Corp. of North America 3,200 3,198 .11
6.69% due 10/2/00
88,720 3.15
Federal Agency Short-Term
Obligations - 1.06%
Federal Home Loan Banks 6.43% 15,000 14,971 .53
due 10/11/00
Freddie Mac 6.42%-6.425% due 10/31/00 15,000 14,917 .53
29,888 1.06
Total Short-Term Securities 118,608 4.21
(cost: $118,608,000)
Total Investment Securities 2,768,423 98.34
(cost:$3,125,664,000)
Excess of cash and receivables 46,704 1.66
over payables
Net Assets $2,815,127 100.00%
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>
<S> <C> <C>
AMERICAN HIGH INCOME TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2000 (dollars in thousands)
Assets:
Investment securities at market
(cost: $3,125,664) $2,768,423
Cash 3,069
Receivables for--
Sales of investments $11,582
Sales of fund's shares 5,785
Forward currency contracts - net 1,768
Dividends and accrued interest 54,944
Other 3 74,082
2,845,574
Liabilities:
Payables for--
Purchases of investments 14,655
Repurchases of fund's shares 4,838
Forward currency contracts - net 0
Forward currency contracts - net 529
Dividends on fund's shares 8,596
Management services 1,079
Chase Manhattan Bank 0
Other expenses 750 30,447
Net Assets at September 30, 2000--
Unlimited shares authorized $2,815,127
Class A shares:
Net Assets $2,788,551
Shares outstanding 215,730,435
Net asset value per share $12.93
Class B shares:
Net Assets $ 26,576
Shares outstanding 2,056,029
Net asset value per share $12.93
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the year ended September 30, 2000 (dollars in thousands)
Investment Income:
Income:
Interest $267,020
Dividends 4,355 $271,375
Expenses:
Management services fee 12,688
Distribution expenses - Class A 6,916
Distribution expenses - Class B 68
Transfer agent fee - Class A 2,240
Transfer agent fee - Class B 5
Reports to shareholders 172
Registration statement and prospectus 305
Postage, stationery and supplies 429
Trustees' fees 31
Auditing and legal fees 70
Custodian fee 86
Taxes other than federal income tax 62
Other expenses 27 23,099
Net investment income 248,276
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 34,882
Net change in unrealized (depreciation)
appreciation on:
Investments (142,942)
Open forward currency contracts 2,908
Net unrealized depreciation (140,034)
Net realized loss and
unrealized depreciation
on investments (105,152)
Net Increase/(Decrease) in Net Assets Resulting
from Operations $143,124
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended
September 30,
2000 1999
Operations:
Net investment income $248,276 $246,356
Net realized gain (loss) on investments 34,882 (23,484)
Net unrealized depreciation
on investments (140,034) (27,296)
Net increase in net assets
resulting from operations 143,124 195,576
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income:
Class A (269,111) (244,894)
Class B (569) -
Distributions from net realized gains on investments
Class A - (8,119)
Total Dividends and Distributions (269,680) (253,013)
Capital Share Transactions:
Proceeds from shares sold 736,403 1,060,634
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on investments 187,256 178,581
Cost of shares repurchased (759,365) (764,282)
Net increase in net assets resulting from 164,294 474,933
capital share transactions
Total Increase in Net Assets 37,738 417,496
Net Assets:
Beginning of year 2,777,389 2,359,893
End of year (including
undistributed net investment (loss)
income: $(3,111) and $18,569
respectively) $2,815,127 $2,777,389
See Notes to Financial Statements
</TABLE>
American High-Income Trust
NOTES TO FINANCIAL STATEMENTS
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 without an initial sales
charge but are subject to a contingent deferred sales charge paid upon
redemption. This charge declines from 5% to zero over a period of six years.
Class B shares have higher distribution expenses and transfer agent fees 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 accounting principles generally accepted in the United
States 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. 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. The ability of the issuers of the fixed-income securities held by the
fund to meet their obligations may be affected by economic developments in a
specific industry, state or region.
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 fixed-income securities
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.
ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily between Class A
and Class B based on their relative net asset values. Distribution expenses,
transfer agent fees and any other class-specific expenses are accrued daily and
charged to the applicable share 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 gains on dividends, interest,
sales of non-U.S. bonds and notes, forward contracts, and other receivables and
payables, on a book basis, were $7,558,000 for the year ended September 30,
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 September 30, 2000, net unrealized depreciation on investments, excluding
forward currency contracts, for book and federal income tax purposes aggregated
$357,241,000; $112,652,000 related to appreciated securities and $469,893,000
related to depreciated securities. There was no difference between book and tax
realized gains on securities transactions for the year ended September 30,
2000. During the year ended September 30, 2000, the fund realized, on a tax
basis, a net capital gain of $496,000 on securities transactions. During the
year ended September 30, 2000, the fund utilized the remaining capital loss
carryforward totaling $4,518,000 to offset, for tax purposes, capital gains
realized during the year up to such amount. In addition, the fund has
recognized, for tax purposes, capital losses totaling $8,643,000 which were
realized during the period November 1, 1998 through September 30, 1999. Net
gains related to non-U.S. currency transactions of $7,983,000 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 $3,125,664,000 at September 30, 2000.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $12,688,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
Net Asset Level
<S> <C> <C>
Rate In Excess of Up to
0.30% $0 $60 million
0.21 60 million 1 billion
0.18 1 billion 3 billion
0.16 3 billion
</TABLE>
The agreement also provides for fees based on monthly gross investment income
at the following rates:
<TABLE>
<CAPTION>
Monthly Gross Investment Income
<S> <C> <C>
Rate In Excess of Up to
3.00% $0 8,333,333
2.50 8,333,333 25,000,000
2.00 25,000,000
</TABLE>
DISTRIBUTION EXPENSES - American Funds Distributors, Inc. ("AFD"), the
principal underwriter of the fund's shares, received $1,874,000 (after
allowances to dealers) as its portion of the sales charges paid by purchasers
of the fund's Class A shares during the year ended September 30, 2000. Such
sales charges are not an expense of the fund and, hence, are not reflected in
the accompanying Statement of Operations.
The fund has adopted plans of distribution under which it may finance
activities primarily intended to sell fund shares, provided the categories of
expense are approved in advance by the fund's Board of Trustees. The plans
provide for aggregate annual expense limits of 0.30% of net assets for Class A
shares, and 1.00% of net assets for Class B shares.
For Class A shares, approved categories of expense include dealer service fees
of up to 0.30% of net assets. Also included are monthly reimbursements to AFD
for commissions paid during the prior 15-month period to dealers and
wholesalers in respect of certain shares sold without a sales charge. These
reimbursements are permitted only to the extent that the fund's overall 0.30%
annual expense limit is not exceeded. For the year ended September 30, 2000,
aggregate distribution expenses were $6,916,000, or 0.25% of net assets
attributable to Class A shares.
For Class B shares, approved categories of expense include fees of 0.75% per
annum payable to AFD. AFD sells the rights to receive such payments (as well as
any contingent deferred sales charges payable in respect of shares sold during
the period) in order to finance the payment of dealer commissions. Also
included are service fees of 0.25% per annum. These fees are paid to AFD to
compensate AFD for paying service fees to qualified dealers. For the year
ended September 30, 2000, aggregate distribution expenses were $68,000, or
1.00% of net assets attributable to Class B shares.
As of September 30, 2000, accrued and unpaid distribution expenses payable to
AFD for Class A and Class B shares were $472,000 and $20,000, respectively.
TRANSFER AGENT FEE - A fee of $2,245,000 was incurred during the year ended
September 30, 2000 pursuant to an agreement with American Funds Service Company
(AFS), the transfer agent for the fund.
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, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $77,000.
AFFILIATED TRUSTEES AND OFFICERS - CRMC is owned by The Capital Group
Companies, Inc. AFS and AFD are both wholly owned subsidiaries of CRMC.
Officers of the fund and certain Trustees 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 $1,340,704,000 and $1,238,916,000, respectively,
during the year ended September 30, 2000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the year ended September 30, 2000, the custodian fee of $86,000 includes
$84,000 that was paid by these credits rather than in cash.
Net assets consisted of the following:
<TABLE>
<S> <C>
As of September 30, 2000, net assets consisted of the following:
(dollars in thousands)
Capital paid in on shares of beneficial interest $3,165,853
Undistributed net investment income (3,111)
Accumulated net realized gain 8,479
Net unrealized depreciation (356,094)
Net assets $2,815,127
</TABLE>
Capital share transactions in the fund were as follows:
<TABLE>
<S> <C> <C> <C> <C>
Capital share
transactions in the fund
were as follows:
Year ended Septe mber 30, 2000 Year ended Septe mber 30, 1999
Amount (000) Shares Amount (000) Shares
Class A Shares:
Sold $ 709,127 52,802,532 $ 1,060,634 75,509,296
Reinvestment of 186,881 13,990,142 178,581 12,742,880
dividends and
distributions
Repurchased (758,788) (56,441,175) (764,282) (54,497,988)
Net (decrease) 137,220 10,351,499 474,933 33,754,188
increase in Class A
Class B Shares:*
Sold 27,276 2,071,283 - -
Reinvestment of 375 28,676 - -
dividends and
distributions
Repurchased (577) (43,930) - -
Net (decrease) 27,074 2,056,029 - -
increase in Class B
Total net increase $ 164,294 12,407,528 $ 474,933 33,754,188
(decrease) in fund
* Class B shares were
not offered before
March 15, 2000.
</TABLE>
At September 30, 2000, the fund had outstanding forward currency contracts to
buy and sell non-U.S. currencies as follows:
<TABLE>
<S> <C> <C> <C> <C>
Contract Amount U.S. Valuations
Non-U.S.
Currency Unrealized
Contracts Non-U.S. U.S. Amount Appreciation
Sales:
Japanese yen
expiring 09/13/01 Yen 430,474,000 $4,362,000 $4,224,000 $138,000
Euros
expiring 10/20-
12/13/00 Euro 38,133,000 34,644,000 33,763,000 881,000
British pounds
expiring 10/10-
12/20/00 Pound 24,898,000 37,018,000 36,834,000 184,000
1/31/2000 N0K0 2,358,365 2,250,528 107,837
Euros
expiring 11/02/1999 to
1/31/2000 0 0 0 0
76,024,000 74,821,000 1,203,000
Purchases:
British pounds
expiring 10/26/00 Pound 650,000 950,000 950,000 -
$1,203,000
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS (1)
Net
Net asset gains/(losses)
value, Net on securities
beginning investment (both realized
Year ended of Year income and unrealized)
Class A:
2000 $13.52 1.18 (2) $(.48)(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
Class B:
2000 13.57 0.52 (2) (.53)(2)
Dividends
Total from (from net Distributions
investment investment (from capital
Year ended operations income) gains)
Class A:
2000 $.70 $(1.29) -
1999 1.11 (1.29) $(.05)
1998 (.30) (1.30) (.34)
1997 2.09 (1.24) (.02)
1996 1.88 (1.32) -
Class B:
2000 (.01) (.63) -
Net asset
Total value, end Total
Year ended distributions of Year return
Class A:
2000 $(1.29) $12.96 5.29%
1999 (1.34) 13.52 8.11
1998 (1.64) 13.75 (2.40)
1997 (1.26) 15.69 14.66
1996 (1.32) 14.86 13.68
Class B:
2000 (.63) 12.93 (.10)
Ratio of Ratio of
Net assets, expenses net income
end of Year to average to average
Year ended (in millions) net assets net assets
Class A:
2000 $2,788 .82% 8.87%
1999 2,777 .82 9.21
1998 2,360 .81 8.76
1997 2,108 .82 8.35
1996 1,547 .87 8.90
Class B:
2000 27 1.52 (3) 8.18(3)
Portfolio
turnover
Year ended rate
Class A:
2000 46.43% (4)
1999 29.79
1998 54.63
1997 53.55
1996 39.74
Class B:
2000 46.43 (4)
<table/>
(1) The periods 1996 through 2000 represent, for Class A shares, fiscal years
ended September 30. The period ended 2000 represents, for Class B shares, the
199-day period ended September 30, 2000. Class B shares were not offered before
March 15, 2000. Total return for Class B is based on activity during the
period and thus is not representative of a full year. Total
returns exclude all sales charges, including contingent deferred sales charges.
(2) Based on average shares outstanding.
(3) Annualized.
(4) Represents portfolio turnover rate (equivalent for all share classes) for
the year ended September 30, 2000.
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, 2000, 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 for Class A shares and the period March 15, 2000
through September 30, 2000 for Class B shares. 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 auditing standards generally
accepted in the United States of America. 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, 2000, 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, 2000, 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 for Class A shares and the
period March 15, 2000 through September 30, 2000 for Class B shares, in
conformity with accounting principles genera11y accepted in the United States
of America.
Deloitte & Touche LLP
Los Angeles, California
October 31, 2000
2000 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, 0.9% 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 2001 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR
2000 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. 18 filed 3/10/00)
(b) Previously filed (see Post-Effective Amendment No. 14 filed 11/26/97)
(c) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(d) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(e) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(f) None
(g) Previously filed (see Post-Effective Amendment No. 17 filed 11/26/99)
(h) None
(I) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(j) Consent of Independent Auditors
(k) None
(l) Previously filed (see Post-Effective Amendment No. 14 filed 11/26/97)
(m) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(n) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
(o) None
(p) Previously filed (see Post-Effective Amendment No. 18 filed 3/10/00)
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
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, EuroPacific Growth Fund,
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>
<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 Vice President None
27304 Park Vista Road
Agoura Hills, CA 91301
John A. Agar Vice President None
1501 N. University, Suite 227A
Little Rock, AR 72207
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 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 Vice President None
4129 Laclede Avenue
St. Louis, MO 63108
B J. Peter Burns Vice President None
Brian C. Casey 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 and Co-Chief None
Executive Officer
Ruth M. Collier Senior Vice President None
29 Landsdowne Drive
Larchmont, NY 10538
S David Coolbaugh Assistant Vice President None
H Carlo O. Cordasco 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
William F. Daugherty Regional Vice President None
1216 Highlander Way
Mechanicsburg, PA 17055
Daniel J. Delianedis Vice President None
8689 Braxton Drive
Eden Prairie, MN 55347
Jay DePerno Regional Vice President None
91 Church Street
East Aurora, NY 14052
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
2627 Mission Street
San Marino, CA 91108
Peter J. Doran Director, Executive Vice None
President
100 Merrick Road, Suite 216W
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
John Fodor Senior 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 and Trustee
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 Senior Vice President None
6744 Avalon
Dallas, TX 75214
Robert S. Irish 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 Senior Vice President None
John P. Keating Regional Vice President None
2285 Eagle Harbor Parkway
Orange Park, FL 32073
Dorothy Klock Vice President None
515 East 89th Street, Apt. 4G
New York, NY 10128
H Diane Koske Assistant Vice President
Andrew R. LeBlanc Regional Vice President None
78 Eton Road
Garden City, NY 11530
Arthur J. Levine Senior Vice President None
12558 Highlands Place
Fishers, IN 46038
B Karl A. Lewis Assistant Vice President None
T. Blake Liberty 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 Vice President None
Louis Linquata Regional Vice President None
170 South Battin
Wichita, KS 67218
LW Robert W. Lovelace Director None
Stephen A. Malbasa Senior 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
James R. McCrary Regional Vice President None
963 1st Street, #1
Hermosa Beach, CA 90254
S John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
William E. Noe 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
Jeffrey Olson Regional Vice President None
930 S. Cowley Street, #305
Spokane, WA 99202
Gary A. Peace Regional Vice President None
291 Kaanapali Drive
Napa, CA 94558
Samuel W. Perry Regional Vice President None
4730 East Indian School Road
Suite 120
Phoenix, AZ 85018
David Petzke Regional Vice President None
4016 Saint Lucia Street
Boulder, CO 80301
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 388
Glenville, NC 28736
George S. Ross Senior Vice President None
P.O. Box 376
Southport, ME 04576
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 Vice President None
10538 Cheviot Drive
Los Angeles, CA 90064
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
Brad W. Short Regional Vice President None
1601 Seal Way
Seal Beach, CA 90740
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
Rodney G. Smith Senior Vice President None
100 N. Central Expressway
Suite 1214
Richardson, TX 75080
S Sherrie L. Snyder-Senft Assistant Vice President None
Anthony L. Soave Regional Vice President None
8831 Morning Mist Drive
Clarkston, MI 48348
L Therese L. Souiller Assistant Vice President None
Nicholas D. Spadaccini 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 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
3021 Kensington Trace
Tarpon Springs, FL 34689
L Drew W. Taylor Vice President None
Gary J. Thoma Regional Vice President None
604 Thelosen Drive
Kimberly, WI 54136
L James P. Toomey Vice President None
I Christopher E. Trede Vice President None
George F. Truesdail Senior 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
204 Fernleaf Drive
Corona del Mar, CA 92625
Thomas E. Warren 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 J. Wenzel Regional Vice President None
251 Barden Road
Bloomfield, MI 48304
H J. D. Wiedmaier Assistant Vice President None
SF N. Dexter Williams Senior 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 None
President
L Robert L. Winston Director, Senior Vice None
President
William R. Yost Senior Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Janet M. Young Regional Vice President None
1616 Vermont
Houston, TX 77006
Jonathan A. Young Regional Vice President None
329 Downing Drive
Chesapeake, VA 23322
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
SF Business Address, One Market, Steuart Tower, Suite 1800, San Francisco, CA
94105-1016
H Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
I Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
(c) None
<TABLE>
<CAPTION>
<S> <C>
</TABLE>
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.
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 certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and 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
27/th/ day of November, 2000.
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 27, 2000, by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Principal Executive Officer:
/s/ David C. Barclay President and Trustee
(David C. Barclay)
(2) Principal Financial Officer
and Principal Accounting Officer:
/s/ Anthony W. Hynes, Jr. Treasurer
(Anthony W. Hynes, Jr.)
(3) Trustees:
/s/ David C. Barclay President and Trustee
(David C. Barclay)
Richard G. Capen, Jr.* Trustee
H. Frederick Christie* Trustee
Diane C. Creel* Trustee
Martin Fenton* Trustee
Leonard R. Fuller* Trustee
/s/ Abner D. 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* Trustee
</TABLE>
*By /s/ Julie F. Williams
Julie F. Williams, Attorney-in-Fact
Counsel represents that this amendment does not contain disclosures that
would make the amendment ineligible for effectiveness under the provisions of
rule 485(b).
/s/ Michael J. Downer
(Michael J. Downer)