[The American Funds Group(r)]
INTERMEDIATE BOND FUND OF AMERICA
Annual Report for the Year Ended August 31, 1999
[graphic: 99]
[photo: meeting]
INTERMEDIATE BOND FUND OF AMERICA is one of the 29 mutual funds in The American
Funds Group,(r) the nation's third-largest mutual fund family. For more than
six decades, Capital Research and Management Company, the American Funds
adviser, has invested with a long-term focus based on thorough research and
attention to risk.
PREPARING FOR THE YEAR 2000
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all computer systems to process date-related information properly
following the turn of the century. Other preparations continue, including
external monitoring and contingency planning. If you'd like more detailed
information, call Shareholder Services at 800/421-0180, ext. 21, or visit our
Web site at www.americanfunds.com.
INTERMEDIATE BOND FUND OF AMERICA(R) seeks to earn current income, consistent
with preservation of capital, by investing primarily in fixed-income securities
with an average effective maturity of no more than five years and with quality
ratings of A or better (as rated by Standard & Poor's or Moody's Investors
Service) or equivalent unrated securities.
THESE INVESTMENTS INCLUDE:
* U.S. GOVERNMENT AND FEDERAL AGENCY SECURITIES
* PASS-THROUGH SECURITIES, SUCH AS MORTGAGE- AND ASSET-BACKED SECURITIES
* HIGH-QUALITY CORPORATE OBLIGATIONS
In pursuing its objective, the fund takes a middle course, seeking a higher
yield than money market funds (which typically offer a stable principal value)
with less volatility than longer term bonds (which typically provide higher
income).
AVERAGE ANNUAL COMPOUND RETURNS*
<TABLE>
<CAPTION>
<S> <C> <C>
Periods ended
8/31/99 9/30/99
Ten Years +6.31% +6.36%
Five Years +4.94 +5.35
One Year -3.31 -3.71
</TABLE>
*Assumes reinvestment of all distributions and payment of the maximum 4.75%
sales charge at the beginning of the stated periods. Sales charges are lower
for accounts of $25,000 or more.
Unlike the results above, fund results in this report were computed without a
sales charge. The fund's 30-day yield as of September 30, 1999, calculated in
accordance with the Securities and Exchange Commission formula, was 5.83%. The
fund's distribution rate as of that date was 5.25%. The SEC yield reflects
income the fund expects to earn based on its current portfolio of securities,
while the distribution rate is based solely on the fund's past dividends.
Accordingly, the fund's SEC yield and distribution rate may differ.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS. SHARE
PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY. INVESTING FOR SHORT PERIODS
MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY
DEPOSITS OF, OR GUARANTEED BY, A BANK OR ANY OTHER ENTITY.
[photo: person looking at statistical reports]
FELLOW SHAREHOLDERS:
Last year at this time, global financial markets were in turmoil and nervous
investors were rushing into U.S. dollar-denominated bonds in search of
stability. Now, 12 months later, many of those investors have returned to the
very assets they fled. In the interim, strength in the U.S. economy led the
Federal Reserve Board to raise interest rates twice after lowering them three
times in late 1998. In such an environment, U.S. Treasury securities are down
sharply from last year. So, too, are most other sectors of the bond market,
though to a lesser extent.
This has not been a friendly environment for bond investors, and the market
price of many of the bonds held in Intermediate Bond Fund of America suffered
during the period. The fund's net asset value declined 4.1% - from $13.56 per
share last year to $13.01 at August 31, the end of the most recent fiscal year.
For shareholders who reinvested their monthly dividends, the fund's 5.8% income
return more than offset the drop in share price, producing a positive 1.5%
total return for the year.
During the same period, the average return of the 100 Short-Intermediate
Investment Grade Debt Funds tracked by Lipper, Inc., was 2.0% with dividends
reinvested, while the unmanaged Salomon Smith Barney Broad Investment-Grade
Medium Term Index posted a 2.1% total return for the year. The important
distinction between your fund and the index is quality: The index contains
lower-rated securities, which generally provide higher yields.
AN ABOUT-FACE FOR BONDS
The fund's fiscal year began last September amid a global financial crisis,
when U.S. Treasury securities looked to be a relatively safe haven and investor
demand for them was unusually strong. By October, yields on Treasury bonds had
fallen to their lowest levels in nearly 30 years, and prices rose sharply as a
result. Stocks and most other sectors of the bond market suffered.
Late in the year, that trend began reversing itself when investors cautiously
returned to stocks. Investors were also enticed by lower rated bonds, which
offer more attractive yields. As 1999 progressed, strong economic data
rekindled fears of inflation and spurred the Federal Reserve Board to twice
increase short-term interest rates, in June and August. In anticipation of the
Fed's rate hikes, prices for existing government bonds and most other types of
fixed-income securities fell. Yields on 10-year Treasury bonds reached 6.1% in
August, up from 5.3% a year earlier. The consequent drop in prices dealt
10-year Treasuries a -5.0% total return over the period.
THE BENEFITS OF DIVERSIFICATION
The broad weakness in the bond market left few places to hide during the fiscal
year. Nonetheless, the investment professionals who manage Intermediate Bond
Fund of America keep the portfolio well-diversified in an effort to reduce the
impact of market declines on overall returns.
Fiscal 1999 provided another example of the benefits of diversification.
Declines in U.S. Treasuries were offset by investments in mortgage-backed and
asset-backed securities, which held up better during the year. As of August 31,
the fund was 77% invested in U.S. government/agency and AAA-rated securities.
Securities backed by mortgages accounted for more than 45% of the fund's
portfolio: Nearly 23% consists of mortgages sponsored by federal agencies and
16% is in securities backed by commercial mortgages. We have reduced our
Treasury position slightly, having found better values among corporate and
asset-backed issues, both of which now account for a larger share of the
portfolio.
LOOKING AHEAD
[photo: meeting]
The U.S. economic expansion is now continuing into its ninth year. Consumer
demand has been robust, fueled by low unemployment and a rising stock market.
And though wages and the prices of raw materials have increased recently,
overall inflation remains subdued.
In an environment in which investor uncertainty may translate into marked
volatility in financial markets, your fund's emphasis on extensive research to
select quality bonds with relatively short maturities should provide a solid
anchor for your long-term financial objectives.
We look forward to reporting to you again in six months.
Cordially,
/s/Paul G. Haaga, Jr. /s/John H. Smet
Paul G. Haaga, Jr. John H. Smet
Chairman of the Board President
October 18, 1999
[Begin Sidebar]
Results:
How a $10,000 investment in the fund has grown
[begin mountain chart]
<TABLE>
<CAPTION>
Year Intermediate Bond Salomon Brothers Broad Consumer
Ended Fund of America Investment-Grade Medium Price
August with dividends Term Index with interest Index*
31 reinvested compounded
<S> <C> <C> <C>
2/19/88 $9,525 $10,000 $10,000
1988# 9,613 10,062 10,259
1989 10,478 11,233 10,741
1990 11,152 12,207 11,345
1991 12,460 13,872 11,776
1992 14,054 15,675 12,147
1993 15,452 17,027 12,483
1994 15,174 17,026 12,845
1995 16,439 18,732 13,181
1996 17,199 19,605 13,560
1997 18,545 21,403 13,862
1998 19,969 23,291 14,086
1999 20,277 23,781 14,405
</TABLE>
[end mountain chart]
Year ended August 31
$23,781 Salomon Smith Barney Broad
Investment-Grade Medium Term Index/1/
with interest compounded
$20,277 Intermediate Bond Fund of America
with dividends reinvested
$14,405 Consumer Price Index/2/
*From inception, February 19, 1988, through August 31, 1988.
/1/The index is unmanaged, and does not reflect sales charges, commissions or
expenses.
/2/Computed from data supplied by the U.S. Department of Labor, Bureau of Labor
Statistics.
Past results are not predictive of future results.
The fund results in this chart reflect payment
of the maximum sales charge of 4.75% on the
initial $10,000 investment. Thus, the net
amount invested was $9,525. As outlined in
the prospectus, the sales charge is reduced for
larger investments.
[End Sidebar]
[begin pie chart]
Intermediate Bond Fund of America
August 31, 1999
[S] [C]
Portfolio Composition
Federal Agency Mortgage-Backed 23%
U.S. Government/Agency (Non-Mortgage) 19%
Asset-Backed 17%
Commercial Mortgage-Backed 16%
Corporate Bonds 13%
Other Mortgage-Backed 7%
Governments(Excluding U.S. Government)
and Development Authorities 1%
Taxable Municipal Bonds 1%
Cash & Equivalents 3%
[end pie chart]
<TABLE>
Intermediate Bond Fund of America
Investment Portfolio, August 31, 1999
<S> <C> <C> <C>
Principa Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
- -------------------------------------------- -------- -------- --------
FEDERAL AGENCY MORTGAGE PASS-THROUGH OBLIGATIONS (1)
- -21.05%
Fannie Mae:
5.769% 2033 (2) $10,177 $ 9,954
6.00% 2013 13,167 12,529
6.50% 2013-2029 9,881 9,525
7.00% 2008-2028 14,558 14,363
7.50% 2009-2030 13,152 13,184
8.00% 2002-2028 1,981 2,013
8.282% 2002 (2) 7,026 7,090
8.50% 2008-2027 6,421 6,635
9.00% 2001-2022 7,024 7,356
9.50% 2009-2022 4,513 4,783
10.00% 2017-2025 10,870 11,750
10.50% 2004-2020 797 863
11.00% 2000-2020 1,937 2,132
12.00% 2015-2019 9,442 10,681
12.25% 2012-2013 1,414 1,586
12.50% 2016-2029 3,023 3,431
13.00% 2015-2028 2,416 2,795
15.00% 2028 896 1,06 7.91%
Fannie Mae/Government National Mortgage Assn.:
11.00% 2029 728 806
11.50% 2029 218 243
12.50% 2029 2,110 2,394
15.00% 2029 478 58 .28
Fannie Mae Grantor Trust, Series 1999-T2, Class A1, 6,569 6,55 .43
7.50% 2039
Freddie Mac:
6.00% 2014-2029 15,805 14,960
6.50% 2014 24,800 24,096
7.00% 2008 2,094 2,085
8.00% 2003-2017 13,140 13,460
8.50% 2008-2027 6,162 6,373
8.75% 2008-2009 582 596
9.00% 2028 1,458 1,521
9.50% 2010-2013 784 818
10.00% 2005-2019 9,442 10,053
11.00% 2018 46 51
12.00% 2016 107 119
12.50% 2015-2019 723 818
12.75% 2019 28 3 4.88
Government National Mortgage Association:
6.00% 2013-2029 5,404 5,113
6.50% 2013-2029 23,411 22,357
7.00% 2007-2029 14,814 14,425
7.50% 2022-2028 19,156 19,011
8.00% 2023-2027 21,078 21,344
8.50% 2007-2023 9,652 10,008
9.00% 2008-2025 6,387 6,720
9.50% 2009-2021 10,994 11,737
10.00% 2019 4,522 4,940
10.25% 2012 195 209
10.50% 2019 50 5 7.55
-------------------
323,21 21.05
-------------------
FEDERAL AGENCY COLLATERALIZED MORTGAGE OBLIGATONS (1)
- -1.71%
Fannie Mae:
Series 91-50, Class H, 7.75% 2006 7,000 7,085
Series 91-146, Class Z, 8.00% 2006 1,998 2,046
Trust D2, 11.00% 2009 2,144 2,315
Series 88-16, Class B, 9.50% 2018 309 328
Series 90-93, Class G, 5.50% 2020 1,610 1,530
Series 1991-78, Class PK, 8.50% 2020 233 232
Series 90-21, Class Z, 9.00% 2020 9,195 9,46 1.50
Freddie Mac:
Series 83-B, Class 3, 12.50% 2013 70 77
Series 1567, Class A, 5.526% 2023 (2) 1,565 1,524
Series 2030, Class F, 5.768% 2028 (2) 1,565 1,57 .21
-------------------
26,17 1.71
-------------------
FEDERAL AGENCY OBLIGATIONS - NON-MORTGAGE - 3.86%
Fannie Mae Notes:
4.75% 2003 3,000 2,809
5.625% 2004 9,000 8,651
6.00% 2008 10,650 10,043
5.25% 2009 10,000 8,89 1.98
FHLB Bonds, 5.625% 2001 3,000 2,97 1.19
Freddie Mac Notes:
5.125% 2003 5,750 5,476
5.75% 2003 500 488
5.125% 2008 22,605 19,91 1.69
-------------------
59,25 3.86
-------------------
U.S. TREASURY OBLIGATIONS - 15.11%
6.375% January 2000 12,500 12,541
13.375% August 2001 16,750 19,050
10.75% February 2003 5,000 5,722
10.75% May 2003 10,500 12,135
5.75% August 2003 1,760 1,748
11.125% August 2003 12,500 14,678
7.25% May 2004 37,146 39,015
7.25% August 2004 13,250 13,939
7.875% November 2004 4,245 4,581
11.625% November 2004 35,500 44,026
7.50% February 2005 3,500 3,724
7.25% February 2007 30,250 30,349
6.125% August 2007 19,005 18,943
10.375% November 2009 5,000 5,881
7.125% February 2023 5,250 5,68 15.11
-------------------
232,01 15.11
-------------------
ASSET BACKED OBLIGATIONS (1) - 17.33%
Case Equipment Loan Trust, Series 1999-A, 7,139 7,05 .46
Class B, 5.90% 2005
Chase Manhattan Credit Card Master Trust, 8,750 8,60 .56
Series 1997-5, Class A, 6.194% 2005
ComEd Transitional Funding Trust, Transitional
Funding Trust Note:
Series 1998, Class A-4, 5.39% 2005 2,000 1,920
Series 1998, Class A-5, 5.44% 2007 9,000 8,50 .68
EquiCredit Funding, Series 1996-A, Class A2, 1,369 1,37 .09
6.95% 2012
First Consumer Master Trust:
Series 1999-A, Class A, 5.80% 2005 (3) 8,000 7,647
Series 1999-A, Class B, 6.28% 2005 (3) 9,000 8,54 1.06
FIRSTPLUS Home Loan Owner Trust:
Series 1997-1, Class A3, 6.45% 2009 391 390
Series 1997-4, Class A5, 6.62% 2015 6,200 6,08 .42
Green Tree Financial Corp., pass-through certificates:
Series 1998-2, Class A5, 6.24% 2016 3,500 3,43 3.00
Series 1993-3, Class A5, 5.75% 2018 5,632 5,609
Series 1995-9, Class A4, 6.45% 2027 3,593 3,592
Series 1996-8, Class A4, 7.00% 2027 4,052 4,059
Series 1996-10, Class A4, 6.42% 2028 3,489 3,490
Series 1996-10, Class A5, 6.83% 2028 14,000 13,742
Series 1997-6, Class A5, 6.68% 2029 5,000 4,995
Series 1997-6, Class A6, 6.90% 2029 3,000 2,987
Series 1997-6, Class A7, 7.14% 2029 4,250 4,214
Green Tree Home Improvement Loan Trust:
Series 1997-D, Class HIA3, 6.77% 2023 5,000 4,997
Series 1997-C, Class HIA2, 6.46% 2028 51 5 .33
Green Tree Recreational, Equipment & Consumer Trust, 8,000 7,93 .52
Series 1999-A, Class A6, 6.84% 2029
Greenpoint Manufactured Housing, Series 1999-2, 4,250 4,16 .27
Class A2, 5.84% 2030
Health Care Securitization Program, Series 1999-3, 18,750 18,56 1.21
Class A, 7.05% 2003 (3)
Honda Auto Lease Trust, Asset Backed Notes, Series 5,000 4,97 .32
1999-A, Class C, 6.90% 2005
LML Auto Lease Securitization, Series 1999-A, 17,738 17,59 1.15
Class A, 6.45% 2004 (3)
Mission State Fund, LLC, Class A1 6.19% 07-15-03 (3) 5,875 5,79 .38
The Money Store Home Equity Trust:
Series 1996-B, Class A14, 7.35% 2012 5,000 4,994
Series 1994-D, Class A5, 8.925% 2022 9,621 9,90 .97
Nebhelp Trust, Student Loan Interest Margin Securities, 18,577 18,34 1.20
Series 1998-1, Class A, 6.68% 2016 (3)
PECO Energy Co., Series 1999-A, Class A2, 5.63% 2005 2,500 2,42 .16
PP&L Transition Bond Co. LLC:
Series 1999-1, Class A5, 6.83% 2007 11,250 11,211
Series 1999-1, Class A8, 7.15% 2009 23,000 22,88 2.22
Puerto Rico Public Financing Corp., Series 1, Class A, 17,969 17,44 1.14
6.15% 2008
Rental Car Finance Corp., Series 1999-1, Class C, 2,000 1,89 .12
6.50% 2007 (3)
Student Loan Funding LLC, Series 1998-B, Class B3, 13,500 12,72 .83
6.25% 2019 (3)
Triad Auto Receivables Owner Trust, Series 1999-1, 4,000 3,93 .26
Class A2, 6.09% 2005
-------------------
266,08 17.33
-------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (1) - 15.96%
Asset Securitization Corp., Series 1997-D5, 171,754 15,61 1.02
Class A-PS1, interest only, 1.59% 2043 (2),(4)
Bear Stearns Commercial Mortgage Securities Inc.:
Series 1998-C1, Class A1, 6.34% 2030 5,499 5,323
Series 1999-C1, Class X, interest only, 2031 (2) 92,865 6,31 .76
Chase Commercial Mortgage Securities Corp.:
Series 1996-1, Class A1, 7.60% 2005 1,620 1,651
Series 1997-1, Class A1, 7.27% 2029 (4) 3,200 3,230
Series 1998-1, Class A1, 6.34% 2030 6,419 6,253
Series 1998-2, Class A2, 6.39% 2030 (4) 26,000 24,39 2.31
Commercial Mortgage Acceptance Corp.:
Series 1998-C1, Class A1, 6.23% 2007 2,317 2,24 .41
Series 1998-C2, Class A1, 5.80% 2030 (4) 4,199 4,046
CS First Boston Mortgage Securities Corp., 12,744 12,34 .80
Series 1998-C1, Class A1A, 6.26% 2040
Deutsche Mortgage & Asset Receiving Corp., 12,909 12,35 .80
Series 1998-C1, Class A1, 6.22% 2031
DLJ Mortgage Acceptance Corp.:
Series 1997-CF1, Class A1A, 7.40% 2006 (3) 6,022 6,071
Series 1995-CF2, Class A1B, 6.85% 2027 (3) 10,000 9,931
Series 1996-CF1, Class A1A, 7.28% 2028 2,190 2,200
Series 1998-CF2, Class A1B, 6.24% 2031 7,250 6,739
Series 1998-CF2, Class A3, 6.65% 2031 5,250 4,873
Series 1998-CF2, Class A4, 6.90% 2031 3,250 3,02 2.14
Freddie Mac Loan Receivables Trust, Series 1998-A, 8,000 7,47 .49
Class A3, 6.69% 2020 (3)
GMAC Commercial Mortgage Securities, Inc., 13,955 13,94 .91
Series 1996-C1, Class A2A, 6.79% 2028
GS Mortgage Securities Corp. II, Series 1999-GSFL II, 10,000 9,97 .65
Class D, 6.257% 2027 (2),(3),(4)
J.P. Morgan Commercial Mortgage Finance Corp.:
Series 1995-C1, Class A2, 7.416% 2010 (2) 18,155 18,153
Series 1997-C4, Class A1, 6.939% 2028 127 12 1.19
LB Commerical Mortgage Trust, Series 1998-C1, 1,563 1,52 .10
Class A1, 6.33% 2030
Merrill Lynch Mortgage Investors, Inc.:
Series 1995-C2, Class A1, 7.129% 2021 (2) 2,983 2,979
Series 1995-C3, Class A2, 6.819% 2025 (2) 5,180 5,132
Series 1995-C3, Class A3, 7.059% 2025 (2) 1,500 1,483
Series 1997-C1, Class A1, 6.95% 2029 (2) 12,648 12,658
Series 1998-C3, Class A1, 5.65% 2030 6,235 5,90 1.83
Mortgage Capital Funding, Inc., Series 1998-MC1, 12,871 12,53 .82
Class A1 6.417% 2030
Nomura Asset Securities Corp., Series 1998-D6, 8,995 8,74 .57
Class AA1, 6.28% 2030 (2)
Prudential Securities Secured Financing Corp., 2,000 1,85 .12
Series 1999-NRF1, Class C, 6.746% 2009
Security National Mortgage Loan Trust, Series 1999-1, 7,619 7,56 .49
Class B, 9.858% 2030 (3)
SMA Finance Co., Inc., Series 1998-C1, Class A1, 8,493 8,30 .54
6.27% 2032 (3)
-------------------
244,95 15.96
-------------------
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED)(1) - 6.65%
Chase Manhattan Bank, NA, Series 1993-I, Class 2A5, 1,801 1,80 .12
7.25% 2024
First Nationwide, Series 1999-2, Class 1PA1, 6.50% 2029 7,002 6,67 .44
Morgan Stanley Capital I Inc.:
Series 1995-GA1, Class A1, 7.00% 2002 (3) 1,725 1,731
Series 1998-HF1, Class A1, 6.19% 2007 (2) 7,014 6,753
Series 1998-HF2, Class A1, 6.01% 2030 4,750 4,541
Series 1998-WF1, Class A1, 6.25% 2030 12,133 11,696
Series 1998-WF2, Class A1, 6.34% 2030 (2) 6,487 6,260
Series 1998-HF2, Class A2, 6.48% 2030 6,000 5,685
Series 1999-FNV1, Class D, 7.03% 2032 4,000 3,76 2.63
Paine Webber CMO, Series O, Class 5, 9.50% 2019 2,566 2,68 .17
Residential Accredit Loans, Inc., Series 1997-QS12, 3,000 2,97 .19
Class A4, 6.875% 2027 (2)
Residential Funding Mortgage Securities I, Inc., 1,981 1,84 .12
Series 1998-S17, Class M1, 6.75% 2028
Structured Asset Securities Corp.:
Series 1998-RF2, Class A, 8.582% 2022 (2),(3) 15,308 15,413
Series 1998-RF1, Class A, 8.694% 2027 (2),(3) 17,168 17,474
Series 1999-BC1, Class M2, 6.464% 2029 (2) 7,500 7,51 2.63
Structured Asset Notes Transaction, Ltd., 5,435 5,39 .35
Series 1996-A, Class A1, 7.156% 2003 (3)
-------------------
102,21 6.65
-------------------
FINANCIAL SERVICES - 5.78%
ABN AMRO Bank N.V. 7.55% 2006 3,000 3,04 .20
Associates Corp. of North America 6.45% 2001 7,000 6,97 .45
BankAmerica Corp.:
6.65% 2001 3,000 3,005
5.875% 2009 3,175 2,81 .38
Barclays North American Capital Corp. 9.75% 2021 7,230 7,80 .51
Beverly Finance Corp. 8.36% 2004 (3) 10,000 10,30 .67
DBS Bank Ltd. 7.875% 2009 (3) 3,000 2,97 .19
Ford Motor Credit Co.:
5.75% 2004 9,000 8,552
6.70% 2004 7,375 7,25 1.03
General Electric Capital Corp. 8.375% 2001 1,500 1,54 .10
General Motors Acceptance Corp.:
6.75% 2002 3,000 2,995
6.85% 2004 12,000 11,89 .97
Household Finance Corp. 6.00% 2004 4,000 3,81 .25
Ikon Capital Inc. 6.33% 2000 2,500 2,50 .16
Lend Lease (US) Finance Inc. 6.75% 2005 5,000 4,84 .32
NationsBank Corp. 6.125% 2004 3,000 2,88 .19
Toyota Credit Canada 6.625% 2002 3,000 3,00 .20
Toyota Motor Credit Corp. 6.125% 2000 2,495 2,49 .16
-------------------
88,70 5.78
-------------------
INDUSTRIAL & SERVICE - 3.70%
Carnival Corp. 7.70% 2004 2,000 2,04 .14
Cox Radio, Inc. 6.375% 2005 3,500 3,30 .22
McKesson Corp. 6.30% 2005 2,000 1,78 .12
McKesson Finance of Canada 6.55% 2002 (3) 3,200 3,07 .20
Oil Enterprises Ltd. 6.239% 2008 (3) 9,652 9,24 .60
Pacificorp Australia LLC 6.15% 2008 (3) 10,000 9,09 .59
Pemex Finance Ltd. 5.72% 2003 (3) 5,000 4,89 .32
Philip Morris Companies Inc. 8.250% 2003 1,500 1,55 .10
R.P. Scherer International Corp. 6.75% 2004 4,325 4,24 .28
Sears Roebuck Acceptance Corp. 6.90% 2003 3,000 3,00 .20
Sears Roebuck and Co. 8.51% 2001 1,000 1,03 .07
Sony Corp. 6.125% 2003 8,500 8,36 .54
Sotheby's Holdings, Inc. 6.875% 2009 1,000 91 .06
Wal-Mart Stores, Inc. 5.65% 2000 4,000 3,99 .26
-------------------
56,56 3.70
-------------------
TRANSPORTATION - 2.53%
Continental Airlines:
Series 1998-3, Class C1, 7.08% 2004 6,999 6,642
Series 1999-2, Class C2, 7.434% 2004 (1),(2) 4,000 3,976
Series 1998-2, Class A, 6.41% 2007 18,780 18,043
Series 1996-2, Class A, 7.75% 2016 (1),(4) 1,256 1,23 1.95
Jet Equipment Trust, Series 1995-B, Class A, 9,003 8,89 .58
7.63% 2015 (2012) (1),(3),(4)
-------------------
38,79 2.53
-------------------
UTILITIES - 1.07%
AT&T Corp. 5.625% 2004 3,000 2,86 .19
National Rural Utilities Cooperative Finance Corp.:
5.30% 2003 3,205 3,03 .50
5.50% 2005 5,000 4,690
Texas Utilities Co., Series A, 6.20% 2002 6,000 5,89 .38
-------------------
16,48 1.07
-------------------
GOVERNMENTS (EXCLUDING U.S.) & GOVERNMENT AUTHORITIES
- -0.97%
Canadian Government 6.125% 2002 2,000 1,98 .13
KfW International Finance Inc. 7.625% 2004 2,500 2,58 .17
Ontario (Province of):
7.75% 2002 4,000 4,109
7.375% 2003 2,500 2,55 .43
Victoria (Territory of) Public Authorities Finance 3,500 3,63 .24
Agency, 8.45% 2001
-------------------
14,86 .97
-------------------
TAXABLE MUNICIPAL BONDS - 0.68%
California Maritime Infrastructure Authority 11,000 10,48 .68
6.63% 2009 (3)
-------------------
10,48 .68
DEVELOPMENT AUTHORITIES - 0.19%
Corporacion Andina de Fomento 7.75% 2004 3,000 2,96 .19
-------------------
2,96 .19
-------------------
TOTAL BONDS & NOTES (cost: $1,522,929,000) 1,482,77 96.59
Short-Term Securities
- --------------------------------------------
COMMERCIAL PAPER - 2.68%
Associates Corp. of North America 5.53% due 9/1/99 21,360 21,35 1.39
Pfizer Inc. 5.18% due 9/17/99 9,800 9,77 .64
President and Fellows of Harvard College:
5.20% due 9/13/99 6,000 5,989
5.20% due 9/16/99 4,000 3,99 .65
-------------------
Total Short-Term Securities (cost: $41,113,000) 41,11 2.68
-------------------
Total Investment Securities (cost: $1,564,042,000) 1,523,89 99.27
-------------------
Excess of cash and receivables over payables 11,25 .73
--------- ----------
NET ASSETS 1,535,14 100.00%
========= ==========
(1)Pass-through securies backed by a pool of
mortgages or other loans on which principal
payments are periodically made. Therefore, the
effective maturities are shorter than the stated maturities.
(2)Coupon rate may change periodically.
(3) Purchased in a private placement transaction;
resale may be limited to qualified institutional buyers;
resale to the public may require registration.
(4) Valued in the market on the basis of its effective
maturity - that is, the date at which the security is
expected to be called or refunded by the issuer or
the date at which the investor can put the security
to the issuer for redemption. Effective maturity date
is shown in parentheses.
See Notes to Financial Statements
</TABLE>
<TABLE>
Intermediate Bond Fund of America
Financial Statements
<S> <C> <C>
- ---------------------------------------- ------------ -----------
Statement of Assets and Liabilities
at August 31, 1999 (dollars in thousands)
- ---------------------------------------- ------------ -----------
Assets:
Investment securities at market
(cost: $1,564,042) $1,523,890
Cash 145
Receivables for-
Sales of investments $ 746
Sales of fund's shares 5,009
Accrued interest 13,346 19,101
------------ -----------
1,543,136
Liabilities:
Payables for-
Purchases of investments 2,175
Repurchases of fund's shares 3,840
Dividends payable 683
Management services 495
Other 799 7,992
------------ -----------
Net Assets at August 31, 1999
Equivalent to $13.01 per share on 117,982,506 shares
of beneficial interest issued and outstanding;
unlimited shares authorized $1,535,144
=========
Statement of Operations
for the year ended August 31, 1999 (dollars in thousands)
------------ -----------
Investment Income:
Income:
Interest $ 100,232
Expenses:
Management services fee $ 5,863
Distribution expenses 4,671
Transfer agent fee 961
Reports to shareholders 110
Registration statement and prospectus 132
Postage, stationery and supplies 182
Trustees' fees 26
Auditing and legal fees 45
Custodian fee 30
Taxes other than federal income tax 17
Other expenses 51
------------
Total expenses before reimbursement 12,088
Reimbursement of expenses 471 11,617
Net investment income ------------ -----------
88,615
Realized Loss and Unrealized Depreciation -----------
on Investments:
Net realized loss (4,010)
Net unrealized depreciation on investments:
Beginning of year 20,879
End of year (40,152)
------------
Net unrealized depreciation on investments (61,031)
-----------
Net realized loss and unrealized depreciation
on investments (65,041)
-----------
Net Increase in Net Assets Resulting
from Operations $23,574
===========
Statement of Changes in Net Assets (dollars in thousands)
- ---------------------------------------- --------------------------
For year ended For year ended
August 31 August 31
1999 1998
Operations: --------------- ----------
Net investment income $ 88,615 $ 82,968
Net realized gain (loss) on investments (4,010) 2,961
Net unrealized appreciation (depreciation) on investments (61,031) 14,795
--------------------------
Net increase in net assets
resulting from operations 23,574 100,724
--------------------------
Dividends Paid From Net Investment Income (88,570) (86,313)
--------------------------
Capital Share Transactions:
Proceeds from shares sold:
60,775,441 and 49,876,745 shares, respectively 815,044 672,768
Proceeds from shares issued in
reinvestment of net investment income
dividends: 5,369,952 and 4,954,203 shares,
respectively 71,711 66,762
Cost of shares repurchased: 55,761,176 and
46,961,620 shares, respectively (745,398) (633,193)
--------------------------
Net increase in net assets resulting
from capital share transactions 141,357 106,337
--------------------------
Total Increase in Net Assets 76,361 120,748
Net Assets:
Beginning of year 1,458,783 1,338,035
--------------------------
End of year (including undistributed
net investment income of $572 and
$527, respectively) $1,535,144 $1,458,783
============= =========
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - Intermediate Bond Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks current income, consistent with
preservation of capital, within certain guidelines for quality and maturity.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from a pricing service, when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type. The ability of the
issuers of the debt securities held by the fund to meet their obligations may
be affected by economic developments in a specific industry, state or region.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. 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.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
In the event securities are purchased on a delayed delivery or "when-issued"
basis, the fund will instruct the custodian to segregate liquid assets
sufficient to meet its payment obligations in these transactions. Dividend
income is recognized on the ex-dividend date, and interest income is recognized
on an accrual basis. Market discounts, premiums, and original issue discounts
on securities purchased are amortized daily over the expected life of the
security.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends to shareholders
are declared daily after the determination of the fund's net investment income
and are paid to shareholders monthly.
2. 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 August 31, 1999, net unrealized depreciation on investments for book
and federal income tax purposes aggregated $40,152,000, of which $4,058,000
related to appreciated securities and $44,209,000 related to depreciated
securities. There was no difference between book and tax realized losses on
securities transactions for the year ended August 31, 1999. During the year
ended August 31, 1999, the fund realized, on a tax basis, a net capital loss of
$4,010,000 on securities transactions. The fund had available at August 31,
1999 a net capital loss carryforward totaling $93,411,000 which may be used to
offset capital gains realized during subsequent years through 2005 and thereby
relieve the fund and its shareholders of any federal income tax liability with
respect to the capital gains that are so offset. The fund will not make
distributions from capital gains while a capital loss carryforward remains. In
addition, the fund has deferred, for tax purposes, to fiscal year ending August
31, 2000, the recognition of capital losses totaling $1,513,000 which were
realized during the period November 1, 1998 through August 31, 1999. The cost
of portfolio securities for book and federal income tax purposes was
$1,564,042,000 at August 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $5,863,000 for management services
was incurred pursuant to an agreement with Capital Research and Management
Company (CRMC), with which certain officers and Trustees of the fund are
affiliated. The Investment Advisory and Service Agreement provides for monthly
fees, accrued daily, based on an annual rate of 0.30% of the first $60 million
of average net assets; 0.21% of such assets in excess of $60 million but not
exceeding $1 billion; 0.18% of such assets in excess of $1 billion but not
exceeding $3 billion; and 0.16% of such assets in excess of $3 billion; plus
3.00% on the first $3,333,333 of the fund's monthly gross investment income
(asset-based); and 2.50% of such income in excess of $3,333,333 but not
exceeding $8,333,333; and 2.00% of such income in excess of $8,333,333
(income-based). During the year, CRMC reduced the management fees by $471,000
to reimburse the fund for certain distribution expenses.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution, the fund may
expend up to 0.30% of its average net assets annually for any activities
primarily intended to result in sales of fund shares, provided the categories
of expenses for which reimbursement is made are approved by the fund's Board of
Trustees. Fund expenses under the Plan include payments to dealers to
compensate them for their selling and servicing efforts. During the year ended
August 31, 1999, distribution expenses under the Plan were limited to
$4,671,000. Had no limitation been in effect, the fund would have paid
$5,086,000 in distribution expenses under the Plan. As of August 31, 1999,
accrued and unpaid distribution expenses were $722,000
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $1,880,000 (after allowances to dealers) as its portion
of the sales charges paid by purchasers of the fund's shares. Such sales
charges are not an expense of the fund and, hence, are not reflected in the
accompanying statement of operations.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $961,000.
DEFERRED TRUSTEES FEES - Trustees who are unaffiliated with CRMC may
elect to defer part or all of the fees earned for services as members of the
Board. Amounts deferred are not funded and are general unsecured liabilities of
the fund. As of August 31, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993) net of any
payments to Trustees, were $74,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities of $1,231,000 and $1,047,000, respectively, during the
year ended August 31, 1999.
As of August 31, 1999, accumulated net realized loss on investments was
$93,411,000 and additional paid-in capital was $1,668,135,000.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $30,000 includes $34,000 that was paid by these credits
rather than in cash.
<TABLE>
<S> <C> <C> <C>
Per-Share Data and Ratios
Year Ended August 31
1999 1998 1997
Net Asset Value, Beginning of Year $13.56 $13.42 $13.26
---------- ------------ ----------
Income From Investment Operations:
Net investment income .76 .83 .86
Net gains or losses on securities (both
realized and unrealized) (.55) .17 .15
---------- ------------ ----------
Total from investment operations .21 1.00 1.01
---------- ----------- ---------
Less Distributions:
Dividends (from net investment income) (.76) (.86) (.85)
---------- ----------- ---------
Total distributions (.76) (.86) (.85)
---------- ----------- ---------
Net Asset Value, End of Year $13.01 $13.56 $13.42
========== ========== ========
Total Return (1) 1.54% 7.68% 7.83%
Ratios/Supplemental Data:
Net assets, end of year(in millions) $1,535 $1,459 $1,338
Ratio of expenses to average net assets .75% (2) .76% (2) .82%
Ratio of net income to average net assets 5.69% 6.09% 6.40%
Portfolio turnover rate 70.19% 79.19% 41.55%
1996 1995 1994
Net Asset Value, Beginning of Year $13.52 $13.38 $14.64
---------- --------- ---------
Income From Investment Operations:
Net investment income .88 .93 .95
Net gains or losses on securities (both
realized and unrealized) (.27) .13 (1.20)
---------- --------- ---------
Total from investment operations .61 1.06 (.25)
---------- --------- ---------
Less Distributions:
Dividends (from net investment income) (.87) (.92) (.94)
---------- --------- ---------
Total distributions (.87) (.92) (.94)
---------- --------- ---------
Net Asset Value, End of Year $13.26 $13.52 $13.45
======== ======= =======
Total Return (1) 4.63% 8.33%(1.80%)
Ratios/Supplemental Data:
Net assets, end of year(in millions) $1,429 $1,501 $1,626
Ratio of expenses to average net assets .80% .78% .83%
Ratio of net income to average net assets 6.53% 6.96% 6.79%
Portfolio turnover rate 48.25% 71.91% 52.94%
(1) Excludes maximum sales charge of 4.75%.
(2) Had CRMC not waived management services fees,
the fund's expense ratio would have been .78%
for the fiscal year ended August 31, 1999 and
.79% for the fiscal year ended August 31, 1998.
</TABLE>
Independent Auditors' Report
To the Board of Trustees and Shareholders
of Intermediate Bond Fund of America:
We have audited the accompanying statement of assets and liabilities of
Intermediate Bond Fund of America (the "fund"), including investment portfolio,
as of August 31, 1999, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the per-share data and ratios for each of the five
years in the period then ended. These financial statements and per-share data
and ratios are the responsibility of the fund's management. Our responsibility
is to express an opinion on these financial statements and per-share data and
ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
per-share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at August 31, 1999, by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of Intermediate Bond Fund of America at August 31, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the per-share data and
ratios for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Los Angeles, California
September 30, 1999
Tax Information (Unaudited)
Certain states may exempt from income taxation a portion of the dividends paid
from net investment income if derived from direct U.S. Treasury obligations.
For purposes of computing this exclusion, 20% of the dividends paid by the fund
from net investment income was derived from interest on direct U.S. Treasury
obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans, and
403(b) plans need not be reported as taxable income. However, many retirement
trusts may need this information for their annual information reporting.
Since the amounts above are reported for the fiscal year and not a calendar
year, shareholders should refer to their Form 1099-DIV or other tax information
which will be mailed in January 2000 to determine the calendar year amounts to
be included on their respective 1999 tax returns. Shareholders should consult
their tax advisers.
WHAT MAKES THE AMERICAN FUNDS DIFFERENT?
[photo: American flag]
As a shareholder in Intermediate Bond Fund of America, you are also a member of
The American Funds Group,(r) the nation's third-largest mutual fund family. You
won't find us advertised, yet thousands of financial advisers recommend the
American Funds for their clients' serious money - money set aside for
education, a home, retirement and other important dreams.
What the 29 funds in our group have in common is a commitment to your best
interests and the proven approach of our investment adviser, Capital Research
and Management Company. In business since 1931, Capital's calling cards
include:
* A LONG-TERM, VALUE-ORIENTED APPROACH: Rather than follow short-term fads, we
rely on our own intensive research to find well-managed companies with
reasonably priced shares and solid, long-term potential. Despite our size, we
offer relatively few funds compared with many large fund families, allowing us
to maintain a careful focus on our objectives and enabling you to benefit from
economies of scale.
* A GLOBAL PERSPECTIVE: We opened our first overseas office in 1962, well
before most mutual funds began investing internationally. Today, the American
Funds draw on one of the industry's most globally integrated research networks.
We spend substantial resources getting to know companies and industries around
the world.
* A MULTIPLE PORTFOLIO COUNSELOR SYSTEM: More than 40 years ago, we developed a
unique strategy for managing investments that blends teamwork with individual
accountability. Every American Fund is divided among a number of portfolio
counselors, each of whom manages his or her portion independently, within each
fund's objectives; in most cases, research analysts manage a portion as well.
Over time, this method has contributed to consistency of results and continuity
of management.
* EXPERIENCED INVESTMENT PROFESSIONALS: Nearly 90% of the portfolio counselors
who serve the American Funds were in the investment business before the stock
market decline in October 1987. Long tenure and experience through a variety of
market conditions mean we aren't "practicing" with your money.
* A COMMITMENT TO LOW OPERATING EXPENSES: You can't control market returns, but
you can control what you invest in and how much you pay to own it. American
Funds provide exceptional value for shareholders, with operating expenses that
are among the lowest in the mutual fund industry. Our portfolio turnover rate
is low as well, keeping transaction costs and tax consequences contained.
A PORTFOLIO FOR EVERY INVESTOR
[photo: globe]
Most financial advisers suggest that investors balance their portfolios by
investing across several types of investments. Which mix is right for you? That
depends on a number of things - including your risk tolerance, investment time
horizon and financial goals. The American Funds Group offers 29 funds with an
array of investment objectives to help you and your financial adviser build a
portfolio specifically tailored to your needs.
GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP Fund(r)
EuroPacific Growth Fund(r)
The Growth Fund of America(r)
The New Economy Fund(r)
New Perspective Fund(r)
New World Fund(SM)
SMALLCAP World Fund(r)
GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
American Mutual Fund(r)
Capital World Growth and Income Fund(SM)
Fundamental Investors(SM)
The Investment Company of America(r)
Washington Mutual Investors Fund(SM)
EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
Capital Income Builder(r)
The Income Fund of America(r)
BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
American Balanced Fund(r)
INCOME FUNDS
Emphasis on current income through bonds
American High-Income Trust(SM)
The Bond Fund of America(SM)
Capital World Bond Fund(r)
Intermediate Bond Fund of America(r)
U.S. Government Securities Fund(SM)
TAX-EXEMPT INCOME FUNDS
Emphasis on tax-free current income through municipal bonds
American High-Income Municipal Bond Fund(r)
Limited Term Tax-Exempt Bond Fund of America(SM)
The Tax-Exempt Bond Fund of America(r)
State-Specific Tax-Exempt Funds
The Tax-Exempt Fund of California(r)
The Tax-Exempt Fund of Maryland(r)
The Tax-Exempt Fund of Virginia(r)
MONEY MARKET FUNDS
Seek stable monthly income through money market instruments
The Cash Management Trust of America(r)
The Tax-Exempt Money Fund of America(SM)
The U.S. Treasury Money Fund of America(SM)
FOR MORE COMPLETE INFORMATION ABOUT ANY OF THE FUNDS, INCLUDING CHARGES AND
EXPENSES, PLEASE OBTAIN A PROSPECTUS FROM YOUR INVESTMENT DEALER, DOWNLOAD ONE
FROM OUR WEB SITE AT WWW.AMERICANFUNDS.COM, OR PHONE THE FUND'S TRANSFER AGENT,
AMERICAN FUNDS SERVICE COMPANY, AT 800/421-0180. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY. YOUR INVESTMENT DEALER CAN ALSO GIVE
YOU A COPY OF A PORTFOLIO FOR EVERY INVESTOR.
BOARD OF TRUSTEES
H. FREDERICK CHRISTIE,
Rolling Hills Estates, California
Private investor; former President and Chief
Executive Officer, The Mission Group; former
President, Southern California Edison Company
DON R. CONLAN, South Pasadena, California
President (retired), The Capital Group
Companies, Inc.
DIANE C. CREEL, Long Beach, California
President and Chief Executive Officer,
The Earth Technology Corporation
(international consulting engineering)
MARTIN FENTON, San Diego, California
Managing Director, Senior Resource Group, LLC
(development and management of senior
living communities)
LEONARD R. FULLER, Marina del Rey, California
President, Fuller Consulting (financial
management consulting firm)
ABNER D. GOLDSTINE, Los Angeles, California
Vice Chairman of the Board of the fund
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR., Los Angeles, California
Chairman of the Board of the fund
Executive Vice President and Director,
Capital Research and Management Company
RICHARD G. NEWMAN, Los Angeles, California
Chairman of the Board, President and Chief
Executive Officer, AECOM Technology Corporation
(architectural engineering)
OTHER OFFICERS
JOHN H. SMET, Los Angeles, California
President of the fund
Vice President, Capital Research and
Management Company
MICHAEL J. DOWNER, Los Angeles, California
Vice President of the fund
Senior Vice President - Fund Business Management
Group, Capital Research and Management Company
JULIE F. WILLIAMS, Los Angeles, California
Secretary of the fund
Vice President - Fund Business Management
Group, Capital Research and Management Company
ANTHONY W. HYNES, Jr., Brea, California
Treasurer of the fund
Vice President - Fund Business Management
Group, Capital Research and Management Company
KIMBERLY S. VERDICK, Los Angeles, California
Assistant Secretary of the fund
Assistant Vice President - Fund Business
Management Group, Capital Research and
Management Company
TODD L. MILLER, Brea, California
Assistant Treasurer of the fund
Assistant Vice President - Fund Business
Management Group, Capital Research and
Management Company
HERBERT HOOVER III, a Trustee since 1987, has retired from the Board. The
Trustees thank him for his many contributions to the fund.
[Begin Sidebar]
This report is for the information of shareholders of Intermediate Bond Fund of
America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after December 31, 1999, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
[End Sidebar]
OFFICES OF THE FUND AND OF THE
INVESTMENT ADVISER, CAPITAL RESEARCH
AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5823
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017-2472
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
Printed on recycled paper
Litho in USA SG/GRS/4250
Lit. No. IBFA-011-1099
