CONFORMED
SEC. File Nos. 33-26431
811-5750
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 12
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 14
THE TAX-EXEMPT MONEY FUND OF AMERICA
(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
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
Cary I. Klafter, Esq.
MORRISON & FOERSTER
345 California Street
San Francisco, California 94104
(Counsel for the Registrant)
The Registrant has filed a declaration pursuant to rule 24f-2
registering an indefinite number of shares under the Securities Act of 1933.
On November 16, 1995, it filed its 24f-2 notice for fiscal 1995.
Approximate date of proposed public offering:
It is proposed that this filing become effective on December 1, 1995
pursuant to paragraph (b) of rule 485.
THE TAX-EXEMPT MONEY FUND OF AMERICA
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Item Number of
Part "A" of Form N-1A Captions in Prospectus (Part "A")
<S> <C> <C>
Cover Page Cover Page
1.
Synopsis Summary of Expenses
2.
Condensed Financial Information Financial Highlights
3.
General Description of Registrant Investment Objective and Policies
4.
Management of the Fund Summary of Expenses: Fund Organization and
5.
Management
Capital Stock and Other Securities Investment Objectives and Policies; Certain
6.
Securities and Investment Techniques;
Fund Organization and Management;
Dividends, Distributions and Taxes
Purchase of Securities Being Offered Purchasing Shares
7.
Redemption or Repurchase Redeeming Shares
8.
Legal Proceedings N/A
9.
</TABLE>
<TABLE>
<CAPTION>
Item Number of Captions in Statement of
Part "B" of Form N-1A Additional Information (Part "B")
<S> <C> <C>
10. Cover Page Cover
11. Table of Contents Table of Contents
12. General Information and History General Information; Investment Restrictions
13. Investment Objectives and Policies Description of Securities and Investment Techniques;
Investment Restrictions
14. Management of the Registrant Trust Officers and Trustees; Management
15. Control Persons and Principal Holders Trust Officers and Trustees
of Securities
16. Investment Advisory and Other Services Management
17. Brokerage Allocation and Other Practices Execution of Portfolio Transactions
18. Capital Stock and Other Securities None
19. Purchase, Redemption and Pricing of Purchase of Shares; Shareholder
Securities Being Offered Account Services and Privileges
20. Tax Status Dividends, Distributions and Federal Taxes
21. Underwriter Management -- Principal Underwriter
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Item in Part "C"
<S> <C>
24. Financial Statements and Exhibits
25. Persons Controlled by or under
Common Control with Registrant
26. Number of Holders of Securities
27. Indemnification
28. Business and Other Connections of
Investment Adviser
29. Principal Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
</TABLE>
Signature Page
Prospectus
THE CASH MANAGEMENT TRUST OF AMERICA(R)
THE U.S. TREASURY MONEY FUND OF AMERICA(SM)
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM)
THREE MONEY MARKET FUNDS THAT SEEK TO PROVIDE INVESTORS WITH A WAY TO EARN
CURRENT INCOME (EXEMPT FROM FEDERAL INCOME TAX IN THE CASE OF THE TAX-EXEMPT
MONEY FUND OF AMERICA) WHILE PRESERVING CAPITAL AND MAINTAINING LIQUIDITY.
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
December 1, 1995
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
333 South Hope Street
Los Angeles, California 90071
The investment objective of each fund is to provide investors with a way to
earn income on their cash reserves (exempt from federal income tax in the case
of Tax-Exempt Money Fund), while preserving capital and maintaining liquidity.
Each fund seeks to meet its objective by investing in a high-quality portfolio
of money market instruments.
While the funds attempt to maintain a constant net asset value of $1.00 per
share, there can be no assurance that the funds will be able to do so.
This prospectus presents information you should know before investing in the
funds. It should be retained for future reference.
You may obtain the statement of additional information dated December 1, 1995,
which contains each fund's financial statements, without charge by writing to
the Secretary of the funds at the above address or telephoning 800/421-0180.
These requests will be honored within three business days of receipt.
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
09/39/49-010-1295
<PAGE>
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SUMMARY OF EXPENSES
Average annual
expenses paid over a
10-year period would
be approximately
$8 per year
for each fund,
assuming a $1,000
investment and a 5%
annual return with no
sales charge.
TABLE OF CONTENTS
Summary of Expenses........... 2
Financial Highlights ......... 3
Investment Objectives and
Policies..................... 4
Certain Securities and
Investment Techniques........ 5
Investment Results............ 7
Dividends, Distributions
and Taxes.................... 7
Fund Organization and
Management................... 9
The American Funds
Shareholder Guide............ 12-20
Purchasing Shares............ 12
Reducing Your Sales Charge... 15
Shareholder Services......... 16
Redeeming Shares............. 18
Retirement Plans............. 20
IMPORTANT PHONE NUMBERS
Shareholder Services: 800/421-0180 ext. 1
Dealer Services: 800/421-9900 ext. 11
American FundsLine(R): 800/325-3590
(24-hour information)
This table is designed to help you understand the costs of investing in each
fund. These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
The funds have no sales charges on purchases or reinvested dividends, deferred
sales charges, redemption fees or exchange fees./1/
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets after
fee waiver)
<TABLE>
<CAPTION>
CASH U.S. TAX-
MANAGE- TREASURY EXEMPT
MENT MONEY MONEY
TRUST FUND FUND
------- -------- ------
<S> <C> <C> <C>
Management fees (after certain expense
reimbursements)................................ 0.33% 0.30% 0.33%/2/
12b-1 expenses.................................. 0.07%/3/ 0.08%/3/ 0.06%/3/
Other expenses (including audit, legal, share-
holder services, transfer agent and custodian
expenses)...................................... 0.20% 0.29% 0.26%
Total fund operating expenses................... 0.60% 0.67% 0.65%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following
cumulative expenses on a
$1,000 investment in each fund,
assuming a 5% annual return./4/
Cash Management Trust............. $6 $19 $33 $75
U.S. Treasury Money Fund.......... $7 $21 $37 $83
Tax-Exempt Money Fund............. $7 $21 $36 $81
</TABLE>
/1/ There is no sales charge on purchases of shares of the funds. However, if
shares of the funds are exchanged for shares of another fund in The American
Funds Group the sales charge applicable to the other fund may apply. See
"The American Funds Shareholder Guide--Exchange Privilege."
/2/ Capital Research and Management Company has been voluntarily waiving fees to
the extent necessary to ensure that Tax-Exempt Money Fund expenses do not
exceed 0.65% of the average daily net assets. Had such waiver not been in
effect, fees (as a percentage of average net assets) would have been 0.44%.
/3/ These expenses may not exceed 0.15% of each fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
/4/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
2
<PAGE>
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FINANCIAL The following information has been audited by Price
HIGHLIGHTS Waterhouse LLP, independent accountants, whose unquali-
(For a share fied report covering each of the most recent five years
outstanding is included in the statement of additional information.
throughout the This information should be read in conjunction with the
fiscal year) financial statements and accompanying notes which are
also included in the statement of additional informa-
tion.
CASH MANAGEMENT TRUST
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30
----------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of year............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. .052 .031 .025 .036 .061 .078 .086 .068 .059 .068
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
Total income from in-
vestment operations. .052 .031 .025 .036 .061 .078 .086 .068 .059 .068
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
LESS DISTRIBUTIONS
Dividends from net in-
vestment income....... (.052) (.031) (.025) (.036) (.061) (.078) (.086) (.068) (.059) (.068)
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
Total Distributions.... (.052) (.031) (.025) (.036) (.061) (.078) (.086) (.068) (.059) (.068)
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
Net Asset Value, end of
year..................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------ ------ ------ ----- -----
Total Return.............. 5.34% 3.10% 2.57% 3.64% 6.26% 8.10% 8.98% 7.00% 6.07% 7.05%
RATIOS/SUPPLEMENTAL
DATA
Net Assets, end of
year (in millions).... $2,996 $2,738 $1,940 $2,090 $2,134 $2,145 $1,432 $1,107 $ 809 $ 731
Ratios of expenses to
average net assets.... .60% .68% .65% .63% .61% .57% .54% .50% .51% .51%
Ratio of net income to
average net assets.... 5.21% 3.14% 2.57% 3.59% 6.12% 7.70% 8.62% 6.79% 5.85% 6.77%
</TABLE>
<TABLE>
<CAPTION>
U.S. TREASURY MONEY TAX-EXEMPT MONEY FUND
FUND
YEAR ENDED SEPTEMBER 30
--------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991/1/ 1995 1994 1993 1992 1991 1990/2/
----- ----- ----- ----- ------- ----- ----- ----- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of period........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. .048 .028 .025 .036 .035 .031 .020 .019 .029 .045 .049
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total income from in-
vestment operations. .048 .028 .025 .036 .035 .031 .020 .019 .029 .045 .049
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net in-
vestment income....... (.048) (.028) (.025) (.036) (.035) (.031) (0.20) (.019) (.029) (.045) (0.49)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Distributions.... (.048) (0.28) (.025) (.036) (.035) (.031) (.020) (.019) (.029) (.045) (.049)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value, end of
period................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Return.............. 4.89% 2.89% 2.49% 3.61% 3.52%/3/ 3.14% 1.98% 1.90% 2.96% 4.58% 5.04%/3/
RATIOS/SUPPLEMENTAL
DATA
Net Assets, end of pe-
riod (in millions).... $231 $199 $140 $106 $59 $150 $170 $121 $108 $107 $61
Ratios of expenses to
average net assets.... .667% .674% .608% .675% .675%/4/ .65%/5/ .65%/5/ .65%/5/ .65%/5/ .65%/5/ .65%/4/ /5/
Ratio of net income to
average net assets.... 4.79% 2.91% 2.43% 3.51% 4.77%/4/ 3.09% 1.99% 1.88% 2.95% 4.43% 5.16%/4/
</TABLE>
--------
/1/ Period from 2/1/91-9/30/91.
/2/ Period from 10/24/89-9/30/90.
/3/ Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
/4/ Annualized.
/5/ Had Capital Research and Management Company not waived fees, the fund's
ratio of expenses to average net assets would have been 0.75%, 0.73%,
0.79%, 0.77%, 0.74% and 0.87% for the periods ended September 30, 1995,
1994, 1993, 1992, 1991 and 1990, respectively.
3
<PAGE>
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INVESTMENT THE FUNDS The investment objective of each fund is to
OBJECTIVES provide investors with a way to earn income on their
AND POLICIES cash reserves (exempt from federal income tax in the
case of Tax-Exempt Money Fund), while preserving
Each fund's goal capital and maintaining liquidity. Each fund invests
is to provide you only in securities determined, in accordance with
with a way to earn procedures established by its board of trustees, to
income on your present minimal credit risks. It is the current policy
cash reserves of Cash Management Trust and Tax-Exempt Money Fund to
(free from federal invest only in instruments rated in the highest short-
income tax in the term rating category by Moody's Investors Service, Inc.
case of Tax-Exempt and Standard & Poor's Corporation (for example,
Money Fund) while commercial paper rated "Prime-1" and "A-1" by Moody's
preserving capital and S&P, respectively) or in instruments that do not
and maintaining have short-term ratings by Moody's or S&P but are
liquidity. determined to be of comparable quality in accordance
with procedures established by the boards or that are
issued, guaranteed or insured by the U.S. Government,
its agencies or instrumentalities as to the payment of
principal and interest.
CASH MANAGEMENT TRUST The fund seeks to achieve its
objective by investing in a high-quality portfolio of
money market instruments, which may include commercial
paper, commercial bank obligations, savings association
obligations, corporate bonds and notes, and securities
of the U.S. Government, its agencies or instrumental-
ities. The fund may also enter into repurchase
agreements. See "Certain Securities and Investment
Techniques" below.
U.S. TREASURY MONEY FUND The fund seeks to achieve its
objective by investing in a portfolio consisting
entirely of U.S. Treasury securities. These securities
are guaranteed by the direct "full faith and credit"
pledge of the United States Government and therefore
are of the highest credit quality. Since the fund
invests solely in U.S. Treasury securities, its
dividends are generally exempt from most state and
local taxes; however, dividends are not exempt from
federal income taxes. See "Dividends, Distributions and
Taxes" below.
TAX-EXEMPT MONEY FUND The fund seeks to achieve its
objective by investing in a high-quality portfolio of
municipal securities. Dividends paid by the fund are
subject to most state and local taxes. See "Certain
Securities and Investment Techniques" below. The fund
generally invests substantially all of its assets in
securities the interest on which is exempt from federal
income taxes. The fund may invest up to 20% of its
assets in certain municipal securities, the interest on
which would constitute an item of tax preference
subject to federal alternative minimum tax on
corporations and individuals. See "Dividends,
Distributions and Taxes" below. When abnormal market
conditions require a temporary defensive position or to
take advantage of unusual investment opportunities, the
fund may invest in taxable short-term securities. In
any event, as a matter of fundamental policy, the fund
will under normal market conditions
4
<PAGE>
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invest at least 80% of its total assets in, or derive
at least 80% of its income from, securities the
interest on which is exempt from federal income taxes
(and is not subject to federal alternative minimum
tax).
OTHER INVESTMENT PRACTICES Each fund's investment
restrictions (which are described in the statement of
additional information) and objective cannot be changed
without shareholder approval. All other investment
practices may be changed by each fund's board.
ACHIEVEMENT OF THE FUNDS' INVESTMENT OBJECTIVES CANNOT,
OF COURSE, BE ASSURED. INVESTMENTS IN THE FUNDS ARE
NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT
OR ANY OTHER ENTITY OR PERSON. THERE CAN BE NO ASSUR-
ANCE THAT THE FUNDS WILL BE ABLE TO MAINTAIN A CONSTANT
NET ASSET VALUE OF $1.00 PER SHARE.
CERTAIN MONEY MARKET INSTRUMENTS The funds invest in various
SECURITIES AND high-quality money market instruments that mature, or
INVESTMENT may be redeemed or resold, in 13 months or less (25
TECHNIQUES months or less in the case of U.S. Government
securities). For Cash Management Trust they include (1)
The funds invest commercial paper (notes issued by corporations or
in various high- governmental bodies), (2) certificates of deposit and
quality money bankers' acceptances (time drafts on a commercial bank
market where the bank accepts an irrevocable obligation to pay
instruments. at maturity), (3) savings association and savings bank
obligations, (4) securities of the U.S. Government, its
agencies or instrumentalities, and (5) corporate bonds
and notes. For U.S. Treasury Money Fund they include
U.S. Treasury bills, notes, and bonds. Tax-Exempt Money
Fund invests in money market instruments that are
issued by states, territories, or possessions of the
United States and the District of Columbia and their
political subdivisions, agencies and instrumentalities
("municipalities") to obtain funds for various public
purposes. Tax-Exempt Money Fund may purchase various
types of municipal securities including tax
anticipation notes, bond anticipation notes, revenue
anticipation notes, grant anticipation notes,
construction loan notes, municipal commercial paper,
general obligation bonds, revenue bonds and industrial
development bonds. These securities are described in
the statement of additional information.
REPURCHASE AGREEMENTS Cash Management Trust enters into
repurchase agreements under which it buys a security
and obtains a simultaneous commitment from the seller
to repurchase the security at a specified time and
price. 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 Capital Research and Management
Company. The fund only enters into repurchase
agreements involving securities in which it could
otherwise invest and with selected banks and securities
dealers whose financial condition is
5
<PAGE>
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monitored by the Capital Research and Management
Company. 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.
VARIABLE AND FLOATING RATE OBLIGATIONS The funds may
invest in variable and floating rate obligations which
have interest rates that are adjusted at designated
intervals or whenever there are changes in the market
rates of interest on which the interest rates are
based. The rate adjustment feature tends to limit the
extent to which the market value of the obligation will
fluctuate.
WHEN-ISSUED SECURITIES AND FIRM COMMITMENT AGREEMENTS
The funds may purchase securities on a delayed delivery
or "when-issued" basis and enter into firm commitment
agreements (transactions whereby the payment obligation
and interest rate are fixed at the time of the
transaction but the settlement is delayed). Each fund
as purchaser assumes the risk of any decline in value
of the security beginning on the date of the agreement
or purchase.
"PUT" SECURITIES Cash Management Trust and Tax-Exempt
Money Fund may purchase securities that provide for the
right to resell them to the issuer, a bank, or a
broker-dealer typically at the par value plus accrued
interest within a specified period of time prior to
maturity. This right is commonly known as a "put" or a
"demand feature." The funds may pay a higher price for
such securities than would otherwise be paid for the
same security without such a right. The funds will
enter into these transactions only with issuers, banks,
or broker-dealers that are determined by Capital
Research and Management Company to present minimal
credit risks. If an issuer, bank, or broker-dealer
should default on its obligation to repurchase, the
funds might be unable to recover all or a portion of
any loss sustained from having to sell the security
elsewhere. There is no specific limit on the extent to
which the funds may invest in such securities.
MATURITY Each fund determines net asset value using the
penny-rounding method, according to rules of the
Securities and Exchange Commission, which permits it to
maintain a constant net asset value of $1.00 per share
under normal conditions. These rules require, among
other things, that each fund limit its investments to
securities that will mature no more than 13 months (25
months in the case of securities of the U.S.
Government, its agencies or instrumentalities) from the
date of purchase, and that the dollar-weighted average
portfolio maturity of its investments be 90 days or
less. For this purpose, certain variable and
6
<PAGE>
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floating rate obligations and "put" securities which
may otherwise have stated maturities in excess of 13
months (25 months in the case of U.S. Government
securities) will be deemed to have remaining maturities
equal to the period remaining until the next
readjustment of the interest rate or until the fund is
entitled to repayment or repurchase of the security.
Cash Management Trust, U.S. Treasury Money Fund and
Tax-Exempt Money Fund currently intend to maintain
dollar-weighted average portfolio maturities of
approximately 30 days or less, 90 days or less and 60
days or less, respectively.
INVESTMENT The funds may from time to time compare their invest-
RESULTS ment results to various unmanaged indices or other mu-
tual funds or savings or investment vehicles in reports
You may obtain to shareholders, sales literature and advertisements.
current yield The results may be calculated on a total return and/or
information by yield (or effective yield) basis for various periods.
calling 800/421- Tax-equivalent yields may be calculated for Tax-Exempt
8068. Money Fund. Total returns assume the reinvestment of
all dividends and any capital gain distributions.
The funds' yields and the average annual total returns
are calculated in accordance with Securities and
Exchange Commission requirements. The annualized yields
for Cash Management Trust, U.S. Treasury Money Fund and
Tax-Exempt Money Fund for the 7-day period ended
September 30, 1995, were 5.26%, 4.86% and 3.19%,
respectively. The annualized effective yields for the
same period for Cash Management Trust, U.S. Treasury
Money Fund and Tax-Exempt Money Fund were 5.40%, 4.98%
and 3.24%, respectively. For current yield information,
phone 800/421-8068. Of course, past results are not an
indication of future results.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Each fund declares
DISTRIBUTIONS dividends from net investment income daily and
AND TAXES distributes the accrued dividends to shareholders each
month. Dividends begin accruing one day after payment
Income for shares is received by the fund or American Funds
distributions are Service Company.
made each month.
FEDERAL TAXES Each fund intends to operate as a
"regulated investment company" under the Internal
Revenue Code. In any fiscal year in which a fund so
qualifies and distributes to shareholders all of its
net investment company taxable income and tax-exempt
income, the fund itself is relieved of federal income
tax with respect to amounts distributed to its
shareholders.
The tax treatment of dividends and any capital gains is
the same whether they are reinvested or received in
cash. Dividends distributed by Cash Management Trust
and U.S. Treasury Money Fund are taxable for federal
income tax purposes (unless you are exempt from taxa-
tion or entitled to deferral). Dividends distributed by
U.S. Treasury Money Fund will be
7
<PAGE>
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taxable for federal income tax purposes but will be
tax-exempt for purposes of most states' personal income
tax. Dividends distributed by Tax-Exempt Money Fund
generally will be exempt from federal income tax but
generally will be subject to state income tax. This fa-
vorable tax treatment may not apply to Tax-Exempt Money
Fund shareholders who are "substantial users" (or "re-
lated persons") of facilities financed by securities
held by Tax-Exempt Money Fund. The funds generally do
not realize or distribute capital gains; however, if
they do they will be subject to federal and state in-
come tax for all three funds. Early each calendar year,
you will be notified as to the amount and federal tax
status of all dividends and capital gains paid during
the prior year. You are required by the Internal Reve-
nue Code to report dividends to the federal government
even if they are tax-exempt.
This is a brief summary of some of the tax laws that
affect your investment in the funds. Please see the
statement of additional information and your tax ad-
viser for further information.
IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE SERVICE HAS
NOTIFIED THE FUND THAT THE TAXPAYER IDENTIFICATION
NUMBER LISTED ON YOUR ACCOUNT IS INCORRECT ACCORDING TO
ITS RECORDS OR THAT YOU ARE SUBJECT TO BACKUP
WITHHOLDING, FEDERAL LAW GENERALLY REQUIRES EACH FUND
TO WITHHOLD 31% FROM ANY DIVIDENDS (OTHER THAN TAX-
EXEMPT DIVIDENDS) AND/OR REDEMPTIONS (INCLUDING
EXCHANGE REDEMPTIONS). Amounts withheld are applied to
your federal tax liability; a refund may be obtained
from the Service if withholding results in overpayment
of taxes. Withholding will not apply to tax-exempt
dividends. Federal law also requires each fund to
withhold 30% or the applicable tax treaty rate from
dividends paid to certain nonresident alien, non-U.S.
partnership and non-U.S. corporation shareholders
accounts.
8
<PAGE>
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FUND FUND ORGANIZATION AND VOTING RIGHTS Each fund is an
ORGANIZATION open-end, diversified management investment company and
AND was organized as a Massachusetts business trust (Cash
MANAGEMENT Management Trust in 1976, Tax-Exempt Money Fund in 1989
and U.S. Treasury Money Fund in 1990). Each fund's
The funds are board supervises fund operations and performs duties
members of The required by applicable state and federal law. Members
American Funds of the board who are not employed by Capital Research
Group, which is and Management Company or its affiliates are paid
managed by one of certain fees for services rendered to the fund as
the largest and described in the statement of additional information.
most experienced They may elect to defer all or a portion of these fees
investment through a deferred compensation plan in effect for each
advisers. fund. Shareholders have one vote per share owned and,
at the request of the holders of at least 10% of the
shares of each fund, each fund will hold a meeting at
which each fund's board could be removed by a majority
vote. There will not usually be a shareholder meeting
in any year except, for example, when the election of
the board is required to be acted upon by shareholders
under the Investment Company Act of 1940. Since the
funds use a combined prospectus, each fund may be
liable for misstatements, inaccuracies, or incomplete
disclosure concerning any other fund contained in this
prospectus.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the funds and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide--Investment Minimums and Fund
Numbers" for a listing of funds in The American Funds
Group.)
Capital Research and Management Company manages the
investment portfolios and business affairs of the funds
and receives an annual fee from each fund as follows:
Cash Management Trust: 0.365% on the first $275
million of average net assets; plus 0.3285% on
average net assets in excess of $275 million;
U.S. Treasury Money Fund: 0.30% on the first $800
million of average net assets; plus 0.285% on
average net assets in excess of $800 million;
Tax-Exempt Money Fund: 0.44% on the first $200
million of average net assets; plus 0.42% on average
net assets between $200 million and $600 million;
plus 0.38% on the portion of average net assets
between $600 million and $1.2 billion; plus 0.34% on
average net assets in excess of $1.2 billion.
9
<PAGE>
- -------------------------------------------------------------------------------
These management fee schedules do not reflect voluntary
fee waivers that may be made by Capital Research and
Management Company from time to time or fee waivers
that may be made under a fund's Investment Advisory and
Service Agreement with Capital Research and Management
Company.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of
each fund's shares. American Funds Distributors is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION Each fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan is in effect. Expenditures by each fund under
its plan may not exceed 0.15% of its average net assets
annually (all of which may be for service fees). See
"Sales Charges" below.
TRANSFER AGENT American Funds Service Company, a wholly
owned subsidiary of Capital Research and Management
Company, is the transfer agent and performs shareholder
service functions. It was paid a fee of $3,759,000 by
Cash Management Trust; $152,000 by Tax-Exempt Money
Fund; and $212,000 by U.S. Treasury Money Fund, all for
the fiscal year ended September 30, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
10
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
SERVICE ADDRESS AREAS SERVED
AREA
-------------------------------------------------------------
WEST P.O. Box 2205 AK, AZ, CA, HI, ID,
Brea, CA 92622-2205 MT, NV, OR, UT, WA and
Fax: 714/671-7080 outside the U.S.
-------------------------------------------------------------
CENTRAL- P.O. Box 659522 AR, CO, IA, KS, LA,
WEST San Antonio, TX 78265-9522 MN, MO, ND, NE, NM,
Fax: 210/530-4050 OK, SD, TX, and WY
-------------------------------------------------------------
CENTRAL- P.O. Box 6007 AL, IL, IN, KY, MI,
EAST Indianapolis, IN 46206-6007 MS, OH, TN and WI
Fax: 317/735-6620
-------------------------------------------------------------
EAST P.O. Box 2280 CT, DE, FL, GA, MA,
Norfolk, VA 23501-2280 MD, ME, NC, NH, NJ,
Fax: 804/670-4773 NY, PA, RI, SC, VA,
VT, WV and Washington,
D.C.
-------------------------------------------------------------
ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE COMPANY AT
800/421-0180 FOR SERVICE.
-------------------------------------------------------------
[MAP OF UNITED STATES]
-------------------------------------------------------------
West (light grey); Central-West (white); Central-East
(dark grey), East (purple)
11
<PAGE>
THE AMERICAN FUNDS SHAREHOLDER GUIDE
---------------------------------------------------------
PURCHASING METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
SHARES ---------------------------------------------------------
---------------------------------------------------------
Your investment See "Investment $50 minimum (except
dealer can help Minimums and Fund where a lower
you establish your Numbers" for minimum is noted
account--and help initial under "Investment
you add to it investment Minimums and Fund
whenever you like. minimums. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state printed on your
dealer where the account statement.
purchase is made
and who has a
sales agreement
with American
Funds
Distributors.
---------------------------------------------------------
By mail Make your check Fill out the account
payable to the additions form at the
fund and mail to bottom of a recent
the address account statement,
indicated on the make your check
account payable to the fund,
application. write your account
Please indicate number on your check,
an investment and mail the check
dealer on the and form in the
account envelope provided
application. with your account
statement.
---------------------------------------------------------
By wire Call 800/421-0180 Your bank should wire
to obtain your your additional
account investments in the
number(s), if same manner as
necessary. Please described under
indicate an "Initial Investment."
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.
SHARE PRICE Shares are purchased at the offering price
next determined after the order is received by the fund
or American Funds Service Company. In the case of orders
sent directly to the fund or American Funds Service
Company, an investment dealer MUST be indicated. This
price is the net asset value plus a sales charge, if
applicable. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The net asset value per share is determined as of the
close of trading (currently 4:00 p.m., New York time) on
each day the New York Stock Exchange is open. The
current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share. The net asset value
per share of the money market funds normally will remain
constant at $1.00 based on the funds' current practice
of valuing their shares using the penny-rounding method
in accordance with rules of the Securities and Exchange
Commission.
SHARE CERTIFICATES Shares are credited to your account
and certificates are not issued unless specifically
requested. This eliminates the costly problem of lost or
destroyed certificates.
12
<PAGE>
- -------------------------------------------------------------------------------
If you would like certificates issued, please request
them by writing to American Funds Service Company.
There is usually no charge for issuing certificates in
reasonable denominations. CERTIFICATES ARE NOT AVAIL-
ABLE FOR THE MONEY MARKET FUNDS.
INVESTMENT MINIMUMS AND FUND NUMBERS Here are the
minimum initial investments required by the funds in
The American Funds Group along with fund numbers for
use with our automated phone line, American
FundsLine(R) (see description below):
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund(R)............................... $1,000 02
American Balanced Fund(R)................... 500 11
American Mutual Fund(R)..................... 250 03
Capital Income Builder(R)................... 1,000 12
Capital World Growth and Income Fund(SM).... 1,000 33
EuroPacific Growth Fund(R).................. 250 16
Fundamental Investors(SM)................... 250 10
The Growth Fund of America(R)............... 1,000 05
The Income Fund of America(R)............... 1,000 06
The Investment Company of America(R)........ 250 04
The New Economy Fund(R)..................... 1,000 14
New Perspective Fund(R)..................... 250 07
SMALLCAP World Fund(SM)..................... 1,000 35
Washington Mutual Investors Fund(SM)........ 250 01
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
BOND FUNDS
American High-Income Municipal Bond
Fund(SM)................................. $1,000 40
American High-Income Trust(R).............. 1,000 21
The Bond Fund of America(SM)............... 1,000 08
Capital World Bond Fund(R)................. 1,000 31
Intermediate Bond Fund of America(R)....... 1,000 23
Limited Term Tax-Exempt Bond Fund of
America(SM)............................... 1,000 43
The Tax-Exempt Bond Fund of America(SM).... 1,000 19
The Tax-Exempt Fund of California(R)*...... 1,000 20
The Tax-Exempt Fund of Maryland(R)*........ 1,000 24
The Tax-Exempt Fund of Virginia(R)*........ 1,000 25
U.S. Government Securities Fund(SM)........ 1,000 22
MONEY MARKET FUNDS
The Cash Management Trust of America(R).... 2,500 09
The Tax-Exempt Money Fund of America(SM)... 2,500 39
The U.S. Treasury Money Fund of
America(SM).............................. 2,500 49
</TABLE>
--------
*Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs). Mini-
mums are reduced to $50 for purchases through "Auto-
matic 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 in-
vestments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
13
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE NET AMOUNT OFFERING OFFERING
AT THE OFFERING PRICE INVESTED PRICE PRICE
--------------------- ---------- -------- -------------
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000................. 6.10% 5.75% 5.00%
$50,000 but less than $100,000.... 4.71 4.50 3.75
BOND FUNDS
Less than $25,000................. 4.99 4.75 4.00
$25,000 but less than $50,000..... 4.71 4.50 3.75
$50,000 but less than $100,000.... 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000... 3.63 3.50 2.75
$250,000 but less than $500,000... 2.56 2.50 2.00
$500,000 but less than $1,000,000. 2.04 2.00 1.60
$1,000,000 or more................ none none (see below)
</TABLE>
Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1
million or more, for purchases by any employer-
sponsored 403(b) plan or defined contribution plan
qualified under Section 401(a) of the Internal Revenue
Code including a "401(k)" plan with 200 or more
eligible employees (paid pursuant to the fund's plan of
distribution), and for purchases made at net asset
value by certain retirement plans of organizations with
collective retirement plan assets of $100 million or
more as set forth in the statement of additional
information (paid by American Funds Distributors).
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during
calendar year 1996, provide additional promotional
incentives to dealers. Currently these incentives are
limited to the top one hundred dealers who have sold
shares of the fund or other funds in The American Funds
Group. These incentive payments will be based on a pro
rata share of a qualifying dealer's sales. American
Funds Distributors will, on an annual basis, determine
the advisability of continuing these promotional
incentives.
Any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees or any other purchaser
investing at least $1 million in shares of the fund (or
in combination with shares of other funds in The
American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a
contingent deferred sales charge of 1% is imposed on
certain redemptions made within one year of the
purchase. (See "Redeeming Shares--Contingent Deferred
Sales Charge.")
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to
14
<PAGE>
- -------------------------------------------------------------------------------
compensate them for providing certain services. (See
"Fund Organization and Management--Plan of
Distribution.") These services include processing
purchase and redemption transactions, establishing
shareholder accounts and providing certain information
and assistance with respect to the fund.
NET ASSET VALUE PURCHASES The stock, stock/bond and
bond funds may sell shares at net asset value to: (1)
current or retired directors, trustees, officers and
advisory board members of the funds managed by Capital
Research and Management Company, employees of
Washington Management Corporation, employees and
partners of The Capital Group Companies, Inc. and its
affiliated companies, certain family members of the
above persons, and trusts or plans primarily for such
persons; (2) current registered representatives,
retired registered representatives with respect to
accounts established while active, or full-time
employees (and their spouses, parents, and children) of
dealers who have sales agreements with American Funds
Distributors (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 $100 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.
REDUCING AGGREGATION Sales charge discounts are available for
YOUR SALES certain aggregated investments. Qualifying investments
CHARGE include those by you, your spouse and your children
under the age of 21, if all parties are purchasing
You and your shares for their own account(s), which may include
immediate family purchases through employee benefit plan(s) such as an
may combine IRA, individual-type 403(b) plan or single-participant
investments to Keogh-type plan or by a business solely controlled by
reduce your costs. these individuals (for example, the individuals own the
entire business) or by a trust (or other fiduciary
arrangement) solely for the benefit of these
individuals. Individual purchases by a trustee(s) or
other fiduciary(ies) may also be aggregated if the
investments are (1) for a single trust estate or
fiduciary account, including an employee benefit plan
other than those described above or (2) made for two or
more employee benefit plans of a single employer or of
affiliated employers as defined in the Investment
Company Act of 1940, again excluding employee benefit
plans described above, or (3) 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
15
<PAGE>
- -------------------------------------------------------------------------------
other accounts and may not be aggregated with other
nominee or street name accounts unless otherwise
qualified as described above.
CONCURRENT PURCHASES To qualify for a reduced sales
charge, you may combine concurrent purchases of two or
more funds in The American Funds Group, except direct
purchases of the money market funds. (Shares of the
money market funds purchased through an exchange,
reinvestment or cross-reinvestment from a fund having a
sales charge do qualify.) For example, if you
concurrently invest $25,000 in one fund and $25,000 in
another, the sales charge would be reduced to reflect a
$50,000 purchase.
RIGHT OF ACCUMULATION The sales charge for your invest-
ment may also be reduced by taking into account the
current value of your existing holdings in The American
Funds Group. Direct purchases of the money market funds
are excluded. (See account application.)
STATEMENT OF INTENTION You may reduce sales charges on
all investments by meeting the terms of a statement of
intention, a non-binding commitment to invest a certain
amount in fund shares subject to a commission within a
13-month period. Five percent of the statement amount
will be held in escrow to cover additional sales
charges which may be due if your total investments over
the statement period are insufficient to qualify for a
sales charge reduction. (See account application and
the statement of additional information under "Purchase
of Shares--Statement of Intention.")
YOU MUST LET YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY KNOW IF YOU QUALIFY FOR A REDUCTION IN
YOUR SALES CHARGE USING ONE OR ANY COMBINATION OF THE
METHODS DESCRIBED ABOVE.
SHAREHOLDER AUTOMATIC INVESTMENT PLAN You may make regular monthly
SERVICES or quarterly investments through automatic charges to
your bank account. Once a plan is established, your ac-
The fund offers count will normally be charged by the 10th day of the
you a valuable month during which an investment is made (or by the
array of services 15th day of the month in the case of any retirement
designed to plan for which Capital Guardian Trust Company--another
increase the affiliate of The Capital Group Companies, Inc.--acts as
convenience and trustee or custodian).
flexibility of
your investment-- AUTOMATIC REINVESTMENT Dividends and capital gain dis-
services you can tributions are reinvested in additional shares at no
use to alter your sales charge unless you indicate otherwise on the
investment program account application. You also may elect to have divi-
as your needs and dends and/or capital gain distributions paid in cash by
circumstances informing the fund, American Funds Service Company or
change. your investment dealer.
CROSS-REINVESTMENT You may cross-reinvest dividends or
dividends and capital gain distributions paid by one
fund into another fund in The American Funds Group,
subject to conditions outlined in the statement of ad-
ditional information. Generally, to use this service
the value of your account in the paying fund must equal
at least $5,000.
16
<PAGE>
- -------------------------------------------------------------------------------
EXCHANGE PRIVILEGE You may exchange shares into other
funds in The American Funds Group. Exchange purchases
are subject to the minimum investment requirements of
the fund purchased and no sales charge generally
applies. However, exchanges of shares from the money
market funds are subject to applicable sales charges on
the fund being purchased, unless the money market fund
shares were acquired by an exchange from a fund having
a sales charge, or by reinvestment or cross-
reinvestment of dividends or capital gain
distributions.
You may exchange shares by writing to American Funds
Service Company (see "Redeeming Shares"), by contacting
your investment dealer, by using American FundsLine(R)
(see "Shareholder Services--American FundsLine(R)" be-
low), or by telephoning 800/421-0180 toll-free, faxing
(see "Transfer Agent" above for the appropriate fax
numbers) or telegraphing American Funds Service Compa-
ny. (See "Telephone Redemptions and Exchanges" below.)
Shares held in corporate-type retirement plans for
which Capital Guardian Trust Company serves as trustee
may not be exchanged by telephone, fax or telegraph.
Exchange redemptions and purchases are processed simul-
taneously at the share prices next determined after the
exchange order is received. (See "Purchasing Shares--
Share Price.") THESE TRANSACTIONS HAVE THE SAME TAX
CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES You may automatically exchange
shares (in amounts of $50 or more) among any of the
funds in The American Funds Group on any day (or pre-
ceding business day if the day falls on a non-business
day) of each month you designate. You must either meet
the minimum initial investment requirement for the re-
ceiving fund OR the originating fund's balance must be
at least $5,000 and the receiving fund's minimum must
be met within one year.
AUTOMATIC WITHDRAWALS You may make automatic
withdrawals of $50 or more as follows: five or more
times per year if you have an account of $10,000 or
more, or four or fewer times per year if you have an
account of $5,000 or more. Withdrawals are made on or
about the 15th day of each month you designate, and
checks will be sent within seven days. (See "Other
Important Things to Remember.") Additional investments
in a withdrawal account must not be less than one
year's scheduled withdrawals or $1,200, whichever is
greater. However, additional investments in a
withdrawal account may be inadvisable due to sales
charges and tax liabilities.
THESE SERVICES ARE AVAILABLE ONLY IN STATES WHERE THE
FUND TO BE PURCHASED MAY BE LEGALLY OFFERED AND MAY BE
TERMINATED OR MODIFIED AT ANY TIME UPON 60 DAYS'
WRITTEN NOTICE.
ACCOUNT STATEMENTS Your account is opened in accordance
with your registration instructions. Transactions in
the account, such as additional investments and
dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service
Company. Purchases through automatic investment plans
will be confirmed at least quarterly.
17
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN FUNDSLINE(R) You may check your share balance,
the price of your shares, or your most recent account
transaction, redeem shares (up to $10,000 per fund, per
account each day), or exchange shares around the clock
with American FundsLine(R). To use this service, call
800/325-3590 from a TouchTone(TM) telephone.
Redemptions and exchanges through American FundsLine(R)
are subject to the conditions noted above and in
"Redeeming Shares--Telephone Redemptions and Exchanges"
below. You will need your fund number (see the list of
funds in The American Funds Group under "Purchasing
Shares--Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of
your Social Security number or other tax identification
number associated with your account) and account
number.
--------------------------------------------------------
REDEEMING By writing to Send a letter of instruction
SHARES American specifying the name of the fund, the
Funds Service number of shares or dollar amount to
You may take money Company (at be sold, your name and account
out of your the number. You should also enclose any
account whenever appropriate share certificates you wish to
you please. address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under "Fund $50,000 or less (see below), your
Organization signature must be guaranteed by a
and bank, savings association, credit
Management-- union, or member firm of a domestic
Transfer stock exchange or the National
Agent") Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
--------------------------------------------------------
By contacting If you redeem shares through your
your investment dealer, you may be charged
investment for this service. SHARES HELD FOR YOU
dealer IN YOUR INVESTMENT DEALER'S STREET
NAME MUST BE REDEEMED THROUGH THE
DEALER.
--------------------------------------------------------
You may have You may use this option, provided the
a redemption account is registered in the name of
check sent to an individual(s), a UGMA/UTMA
you by using custodian, or a non-retirement plan
American trust. These redemptions may not
FundsLine(R) exceed $10,000 per day, per fund
or by account and the check must be made
telephoning, payable to the shareholder(s) of
faxing, or record and be sent to the address of
telegraphing record provided the address has been
American used with the account for at least 10
Funds Service days. See "Transfer Agent" and
Company "Exchange Privilege" above for the
(subject to appropriate telephone or fax number.
the
conditions
noted in this
section and
in "Telephone
Redemptions
and
Exchanges"
below)
--------------------------------------------------------
In the case Upon request (use the account
of the money application for the money market
market funds, funds) you may establish telephone
you may have redemption privileges (which will
redemptions enable you to have a redemption sent
wired to your to your bank account) and/or check
bank by writing privileges. If you request
telephoning check writing privileges, you will be
American provided with checks that you may use
Funds Service to draw against your account. These
Company checks may be made payable to anyone
($1,000 or you designate and must be signed by
more) or by the authorized number of registered
writing a shareholders exactly as indicated on
check ($250 your checking account signature card.
or more)
--------------------------------------------------------
A SIGNATURE GUARANTEE IS NOT CURRENTLY REQUIRED FOR ANY
REDEMPTION OF $50,000 OR LESS PROVIDED THE REDEMPTION
CHECK IS MADE PAYABLE TO THE REGISTERED SHAREHOLDER(S)
AND IS MAILED TO THE ADDRESS OF RECORD, PROVIDED THE
ADDRESS HAS BEEN USED WITH THE ACCOUNT FOR AT LEAST 10
DAYS.
18
<PAGE>
- -------------------------------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, 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 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 American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive
of reinvested dividends and capital gain distributions)
or the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is
waived for exchanges (except if shares acquired by
exchange were then redeemed within 12 months of the
initial purchase); for distributions from qualified
retirement plans and other employee benefit plans; for
redemptions resulting from participant-directed
switches among investment options within a participant-
directed employer-sponsored retirement plan; for
distributions from 403(b) plans or IRAs due to death,
disability or attainment of age 59 1/2; for tax-free
returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without a sales charge (any contingent deferred sales
charge paid will be credited to your
19
<PAGE>
- -------------------------------------------------------------------------------
account) in any fund in The American Funds Group. Send
a written request and a check to American Funds Service
Company within 90 days after the date of the redemption
or distribution. Reinvestment will be at the next
calculated net asset value after receipt. The tax
status of a gain realized on a redemption will not be
affected by exercise of the reinstatement privilege,
but a loss may be nullified if you reinvest in the same
fund within 30 days. If you redeem your shares within
90 days after purchase and the sales charge on the
purchase of other shares is waived under the
reinstatement privilege, the sales charge you
previously paid for the shares may not be taken into
account when you calculate your gain or loss on that
redemption.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because each stock,
stock/bond and bond fund's net asset value fluctuates,
reflecting the market value of the fund's portfolio,
the amount a shareholder receives for shares redeemed
may be more or less than the amount paid for them.
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 Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
A fund may, with 60 days' written notice, close your
account if, due to a redemption, the account has a
value of less than the minimum required initial
investment. (For example, a fund may close an account
if a redemption is made shortly after a minimum initial
investment is made.)
RETIREMENT You may invest in the funds through various retirement
PLANS plans including the following plans for which Capital
Guardian Trust Company acts as trustee or custodian:
IRAs, Simplified Employee Pension plans, 403(b) plans
and Keogh- and corporate-type business retirement
plans. For further information about any of the plans,
agreements, applications and annual fees, contact
American Funds Distributors or your investment dealer.
To determine which retirement plan is appropriate for
you, please consult your tax adviser. TAX-EXEMPT FUNDS
SHOULD NOT SERVE AS INVESTMENTS FOR RETIREMENT PLANS.
FOR MORE INFORMATION, PLEASE REFER TO THE ACCOUNT
APPLICATION OR THE STATEMENT OF ADDITIONAL INFORMATION.
IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE SHAREHOLDER
SERVICES DESCRIBED HEREIN OR YOUR ACCOUNT, PLEASE
CONTACT YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
20
THE CASH MANAGEMENT TRUST OF AMERICA
AND
THE U.S. TREASURY MONEY FUND OF AMERICA
AND
THE TAX-EXEMPT MONEY FUND OF AMERICA
Part B
Statement of Additional Information
December 1, 1995
This document is not a prospectus but should be read in conjunction with
the current Prospectus dated December 1, 1995 of The Cash Management Trust of
America ("CMTA"), The U.S. Treasury Money Fund of America ("CTRS") and The
Tax-Exempt Money Fund of America ("CTEX"). Those portions of this Statement of
Additional Information relating to CTEX are inapplicable to the prospectus for
eligible retirement plans relating to CMTA and CTRS. The Prospectus may be
obtained from your investment dealer or financial planner or by writing to the
funds at the following address:
The Cash Management Trust of America
The U.S. Treasury Money Fund of America
The Tax-Exempt Money Fund of America
Attention: Secretary
333 South Hope Street
Los Angeles, CA 90071
(213) 486-9200
CMTA and CTRS have two forms of prospectuses. Each reference to the
prospectus in this Statement of Additional Information includes all the funds'
prospectuses. Shareholders who purchase shares at net asset value through
employer-sponsored defined contribution 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>
Description of Certain Securities and Investment Techniques 2
Investment Restrictions 6
Trustees and Officers of the Funds 12
Management 15
Dividends and Taxes 18
Additional Information Concerning Taxes 20
Purchase of Shares 21
Shareholder Account Services and Privileges 22
Execution of Portfolio Transactions 23
General Information 24
Investment Results 25
Description of Ratings for Debt Securities 29
Financial Statements Attached
</TABLE>
DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES
INVESTMENT POLICIES - Each fund seeks to maintain a constant net asset value of
$1.00 per share for purchases and redemptions. To do so, each fund uses the
penny-rounding method of valuing securities pursuant to rule 2a-7 under the
Investment Company Act of 1940, certain requirements of which are summarized
below.
In accordance with rule 2a-7, each fund is required to maintain a
dollar-weighted average portfolio maturity of 90 days or less, purchase only
instruments having remaining maturities of 13 months or less (25 months or less
in the case of U.S. Government securities) determined in accordance with
procedures established by the Board of Trustees to present minimal credit
risks.
CMTA and CTEX may invest in securities that are rated in the two highest
rating categories for debt obligations by at least two nationally recognized
statistical rating organizations (or one rating organization if the instrument
was rated by only one such organization) or, if unrated, are of comparable
quality as determined in accordance with procedures established by the Board of
Trustees. The nationally recognized statistical rating organizations currently
rating instruments of the type each fund may purchase are Moody's Investors
Service, Inc., Standard & Poor's Corporation, Duff and Phelps, Inc., Fitch
Investors Service, Inc., and IBCA Limited and IBCA Inc. Subsequent to its
purchase, an issue of securities may cease to be rated or its rating may be
reduced below the minimum rating required for its purchase. Neither event
requires the elimination of such securities from the fund's portfolio, but
Capital Research and Management Company (the "Investment Adviser") will
consider such an event in its determination of whether the fund should continue
to hold the securities. Investments in rated securities not rated in the
highest category by at least two rating organizations (or one rating
organization if the instrument was rated by only one such organiation), and
unrated securities not determined by the Board of Trustees to be of comparable
quality to those rated in the highest category, will be limited to 5% of each
fund's total assets, with the investment in any one such issuer being limited
to no more than the greater of 1% of each fund's total assets or $1,000,000.
It is the current policy of CMTA and CTEX to invest only in instruments rated
in the highest short-term rating category by Moody's Investors Service, Inc.
and Standard & Poor's Corporation or in instruments that do not have short-term
ratings by Moody's or S&P but determined to be of comparable quality in
accordance with procedures established by the Board of Trustees or that are
issued, guaranteed or insured by the U.S. Government, its agencies or
instrumentalities as to the payment of principal and interest. CTRS invests
exclusively in U.S. Treasury securities, which are of the highest credit
quality.
THE CASH MANAGEMENT TRUST OF AMERICA
CMTA may invest in the short-term securities described below:
1. COMMERCIAL PAPER: Short-term notes (usually maturing in 90 days or less)
issued by companies or governmental bodies.
2. COMMERCIAL BANK OBLIGATIONS: Certificates of deposit (interest-bearing
time deposits), bank notes, bankers' acceptances (time drafts drawn on a
commercial bank where the bank accepts an irrevocable obligation to pay at
maturity) representing direct or contingent obligations of commercial banks
with assets in excess of $1 billion, based on latest published reports, or
obligations issued by commercial banks with assets of less than $1 billion if
the principal amount of such obligation is fully insured by the U. S.
Government. Commercial banks issuing obligations in which CMTA invests must be
on an approved list that is monitored on a regular basis; currently all
approved banks have assets in excess of $10 billion.
3. SAVINGS ASSOCIATION OBLIGATIONS: Certificates of deposit (interest-bearing
time deposits) issued by savings banks or savings and loan associations that
have assets in excess of $1 billion, based on latest published reports, or
obligations issued by institutions with assets of less than $1 billion if the
principal amount of such obligation is fully insured by the U. S. Government.
Savings associations issuing obligations in which CMTA invests must be on an
approved list that is monitored on a regular basis; currently all approved
savings associations have assets in excess of $10 billion.
4. U.S. GOVERNMENT SECURITIES: These securities include (1) direct
obligations of the Treasury (such as Treasury bills, notes and bonds), (2) U.S.
Government agency obligations guaranteed as to principal and interest by the
Treasury, and (3) obligations of certain U.S. Government agencies and
instrumentalities which are neither direct obligations of, nor guaranteed by,
the Treasury. The latter 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; others are supported only by the credit of the issuing government
agency or instrumentality. These agencies and instrumentalities include, but
are not limited to, Federal Land Banks, Farmers Home Administration, Central
Bank for Cooperatives, and Federal Intermediate Credit Banks.
5. CORPORATE BONDS AND NOTES: Corporate obligations that mature, or may be
redeemed by CMTA, in 13 months or less. These obligations may originally have
been issued with maturities in excess of 13 months. CMTA may currently invest
only in corporate bonds or notes of issuers having outstanding short-term
securities rated in the top rating category by Standard & Poor's Corporation or
by Moody's Investors Service, Inc. See "Description of Ratings for Debt
Securities" for a description of high-quality ratings by Standard & Poor's
Corporation and Moody's Investors Service, Inc.
THE TAX-EXEMPT MONEY FUND OF AMERICA
MUNICIPAL SECURITIES - Municipal securities generally include debt obligations
issued to obtain funds for various public purposes, including the construction
of a wide range of public facilities such as airports, bridges, highways,
housing, hospitals, mass transportation, schools, streets and water and sewer
works. Other public purposes for which municipal securities may be issued
include refunding outstanding obligations, obtaining funds for general
operating expenses and lending such funds to other public institutions and
facilities. In addition, certain types of bonds have been issued by
municipalities to obtain funds to provide for the construction, equipment,
repair or improvement of privately operated housing facilities, sports
facilities, convention or trade show facilities, airport, mass transit,
industrial, port or parking facilities, air or water pollution control
facilities and certain local facilities for water supply, gas, electricity or
sewage or solid waste disposal; the interest paid on such obligations may be
excludable from gross income for federal income tax purposes, although current
tax laws have eliminated or placed substantial limitations on the purposes of
new issues whose interest will be so excluded. Such obligations are considered
to be tax-exempt municipal securities, provided that the interest paid thereon
qualifies as excludable from federal income tax in the opinion of bond counsel
to the issuer; however, the interest on certain of these obligations may be a
tax preference item for purposes of the alternative minimum tax. There are, of
course, variations in the security of municipal securities, both within a
particular classification and between classifications.
Tax anticipation notes, bond anticipation notes and revenue anticipation notes
are issued on an interim basis in expectation of tax collections, revenue
receipts or bond sales. Grant anticipation notes are issued in anticipation of
receipt of intergovernmental grants. Construction loan notes are issued to
provide short-term construction financing for building projects. Municipal
commercial paper and general obligations bonds are unsecured promissory
obligations issued by municipalities backed by the full faith, credit, and
unlimited taxing power of a municipality and repaid with general revenue and
other borrowings. Revenue bonds are issued by municipalities to finance
facilities which generate income, and are repayable from the revenue received
from the facilities built with the borrowed funds. Industrial development
bonds are issued by municipalities to finance facilities that are then leased
to private businesses and typically are repaid by the private business. CTEX
may also purchase other types of municipal securities which have a remaining
life of 13 months or less.
For the purpose of diversification under the Investment Company Act of 1940
(the "1940 Act"), the identification of the issuer of municipal securities
depends on the terms and conditions of the security. When the assets and
revenues of an agency, authority, instrumentality or other political
subdivision are separate from those of the government creating the subdivision
and the security is backed only by the assets and revenues of the subdivision,
such subdivision would be deemed to be the sole issuer. Similarly, in the case
of an industrial development bond, if that bond is backed only by the assets
and revenues of the non-governmental user, then such non-governmental user
would be deemed to be the sole issuer. If, however, in either case, the
creating government or some other entity guarantees a security, such a guaranty
may be considered a separate security and would then be treated as an issue of
such government or other entity.
TEMPORARY TAXABLE INVESTMENTS - A portion of CTEX's assets, which will normally
be less than 20%, may be invested in high-quality taxable short-term
securities. Such temporary investments may include: (1) obligations of the
U.S. Treasury; (2) obligations of agencies and instrumentalities of the U.S.
Government; and (3) money market instruments, such as certificates of deposit
issued by domestic banks, corporate commercial paper, and bankers' acceptances.
These investments may be made when deemed advisable for temporary defensive
purposes or when the Investment Adviser believes there is an unusual disparity
between the after-tax income available on taxable investments and the income
available on tax-exempt securities.
THE U.S. TREASURY MONEY FUND OF AMERICA
REVERSE REPURCHASE AGREEMENTS - Although CTRS has no current intention to do
so during the next 12 months, the fund is authorized to enter into reverse
repurchase agreements. 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. CTRS will segregate liquid assets such as cash or U.S.
Government securities in an amount sufficient to cover its obligations under
reverse repurchase agreements with broker-dealers (but no collateral is
required on reverse repurchase agreements with banks). Under the 1940 Act,
these transactions may be considered borrowings by CTRS; accordingly, CTRS will
limit these transactions, together with any other borrowings, to no more than
one-third of its total assets. Although these transactions will not be entered
into for leveraging purposes, to the extent CTRS' aggregate commitments under
these transactions exceed its holdings of cash and securities that do not
fluctuate in value (such as short-term money market instruments), CTRS
temporarily will be in a leveraged position (I.E., it will have an amount
greater than its net assets subject to market risk). Should market values of
CTRS' 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. As CTRS' aggregate commitments under these transactions
increase, the opportunity for leverage similarly increases.
THE TAX-EXEMPT MONEY FUND OF AMERICA AND THE U.S. TREASURY MONEY FUND OF
AMERICA
LOANS OF PORTFOLIO SECURITIES - Although CTEX or CTRS have no current
intention of doing so during the next 12 months, each 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 a 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. A fund may at any time call a loan of its portfolio securities and
obtain the return of the loaned securities. A fund will receive any interest
paid on the loaned securities and a fee or a portion of the interest earned on
the collateral. Each fund will limit its loans of portfolio securities to an
aggregate of 10% of the value of its total assets, determined at the time any
such loan is made.
REPURCHASE AGREEMENTS - Although CTEX or CTRS have no current intention of
doing so during the next 12 months, each fund is authorized to enter into
repurchase agreements, subject to the standards applicable to CMTA's repurchase
agreement transactions as described in the Prospectus.
THE CASH MANAGEMENT TRUST OF AMERICA, THE U.S. TREASURY MONEY FUND OF AMERICA
AND THE TAX-EXEMPT MONEY FUND OF AMERICA
WHEN-ISSUED SECURITIES AND FIRM COMMITMENT AGREEMENTS - The funds may purchase
securities on a delayed delivery or "when-issued" basis and enter into firm
commitment agreements (transactions whereby the payment obligation and interest
rate are fixed at the time of the transaction but the settlement is delayed).
The funds as purchasers assume the risk of any decline in value of the security
beginning on the date of the agreement or purchase.
The funds will segregate liquid assets such as cash, U.S. Government
securities or other appropriate high-grade debt obligations 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 a fund's aggregate commitments under these transactions exceed its
holdings of cash and securities that do not fluctuate in value (such as
short-term money market instruments), the funds temporarily will be in a
leveraged position (because it will 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 will likely occur than were it not in such a
position. A 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.
INVESTMENT RESTRICTIONS
Each fund has adopted the following fundamental policies and investment
restrictions which may not be changed without a majority vote of its
outstanding shares. Such majority is defined by the 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 expressed in the following
investment restrictions are measured immediately after and giving effect to the
relevant transaction.
CMTA may not:
1. Invest its assets in issues other than those of the U.S. Government, its
agencies or instrumentalities, obligations of commercial banks and savings
institutions with total assets in excess of $1 billion, commercial paper, and
investment-grade corporate obligations--all maturing in one year or less. CMTA
may, however, invest in obligations issued by commercial banks and savings
institutions with assets of less than $1 billion if the principal amounts of
such obligations are fully insured by the U. S. Government;
2. Invest more than 5% of its total assets in the securities of any one
issuer, except the U.S. Government, its agencies and instrumentalities. With
respect to 25% of total assets, commercial banks are excluded from this 5%
limitation;
3. Invest more than 25% of total assets in the securities of issuers in the
same industry. Electric, natural gas distribution, natural gas pipeline,
combined electric and natural gas, and telephone utilities are considered
separate industries for purposes of this restriction. Obligations of the U.S.
Government, its agencies and instrumentalities, are not subject to this 25%
limitation on industry concentration. In addition, CMTA may, if deemed
advisable, invest more than 25% of its assets in the obligations of commercial
banks;
4. Enter into any repurchase agreement if, as a result, more than 10% of
total assets would be subject to repurchase agreements maturing in more than
seven days;
5. Make loans to others except for the purchase of debt securities or
entering into repurchase agreements as listed above;
6. Borrow money, except from banks for temporary purposes and then in an
amount not in excess of 33-1/3% of total assets. This borrowing power is
reserved to facilitate the orderly sale of portfolio securities to accommodate
unusually heavy redemption requests, if they should occur; it is not included
for investment purposes;
7. Pledge more than 15% of its assets and then only to secure temporary
borrowings from banks;
8. Sell securities short;
9. Invest in puts, calls, straddles, spreads or any combination thereof;
10. Purchase or sell securities of other investment companies (except in
connection with a merger, consolidation, acquisition or reorganization), real
estate, or commodities;
11. Engage in the underwriting of securities issued by others.
Notwithstanding Investment Restriction #9, the fund may invest in
securities with put and call features. Notwithstanding Investment Restriction
#10, the fund may invest in securities of other investment companies if deemed
advisable by its officers in connection with the administration of a deferred
compensation plan adopted by Trustees pursuant to an exemptive order granted by
the Securities and Exchange Commission.
For purposes of Investment Restriction #1, CMTA currently invests only in high
quality obligations in accordance with rule 2a-7 under the 1940 Act, see the
Prospectus. (CMTA will notify shareholders 180 days in advance in the event it
no longer is required to adhere to rule 2a-7 and it intends to stop relying on
the rule.) For purposes of Investment Restriction #3, CMTA will not invest 25%
or more of total assets in the securities of issuers in the same industry.
Additionally, for purposes of Investment Restriction #3, the Investment Adviser
currently interprets the term "commercial banks" to mean domestic branches of
U.S. banks. These policies are non-fundamental and may be changed by the Board
of Trustees without shareholder approval.
CTRS may not:
1. Purchase any security (other than securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities), if immediately after and
as a result of such investment (a) with respect to 75% of CTRS' total assets,
more than 5% of CTRS' total assets would be invested in securities of the
issuer, or (b) CTRS would hold more than 10% of any class of securities or of
the total securities of the issuer (for this purpose all indebtedness of an
issuer shall be deemed a single class).
2. Buy or sell real estate (including real estate limited partnerships) in
the ordinary course of its business; however, CTRS may invest in securities
secured by real estate or interests therein;
3. Acquire securities for which there is no readily available market or enter
into repurchase agreements or purchase time deposits maturing in more than
seven days, if, immediately after and as a result, the value of such securities
would exceed, in the aggregate, 10% of CTRS' total assets;
4. Make loans to others, except by the purchase of debt securities, entering
into repurchase agreements or making loans of portfolio securities;
5. Sell securities short;
6. Purchase securities on margin, except such short-term credits as may be
necessary for the clearance of purchases or sales of securities;
7. Borrow money, except from banks for temporary or emergency purposes, not
in excess of 5% of the value of CTRS' total assets, excluding the amount
borrowed. This borrowing provision is intended to facilitate the orderly sale
of portfolio securities to accommodate unusually heavy redemption requests, if
they should occur; it is not intended for investment purposes. In the event
that the asset coverage for CTRS' borrowings falls below 300%, CTRS will reduce
within three days (excluding Sundays and holidays), the amount of its
borrowings in order to provide for 300% asset coverage, and except that CTRS
may enter into reverse repurchase agreements, provided that reverse repurchase
agreements and any other transactions constituting borrowing by CTRS may not
exceed one-third of CTRS' total assets;
8. Mortgage, pledge, or hypothecate its assets, except in an amount up to 5%
of the value of its total assets, but only to secure borrowings for temporary
or emergency purposes;
9. Underwrite any issue of securities, except to the extent that the purchase
of securities directly from the issuer in accordance with CTRS' investment
objective, policies and restrictions, and later resale may be deemed to be an
underwriting;
10. Knowingly purchase securities of other managed investment companies,
except in connection with a merger, consolidation, acquisition, or
reorganization;
11. Buy or sell commodities or commodity contracts (including futures
contracts) or oil, gas or other mineral exploration or development programs;
12. Write, purchase or sell puts, calls, straddles, spreads or any
combination thereof, except that this shall not prevent the purchase of
securities which have "put" or "stand-by commitment" features.
13. Purchase or retain the securities of any issuer, if, to the knowledge of
CTRS, those individual officers and Board members of CTRS, its Investment
Adviser, or principal underwriter, each owning beneficially more than 1/2 of 1%
of the securities of such issuer, together own more than 5% of the securities
of such issuer;
14. Invest more than 5% of the value of CTRS' total assets in securities of
any issuer with a record of less than three years continuous operation,
including predecessors;
15. Invest 25% or more of total assets in the securities of issuers in the
same industry. Electric, natural gas distribution, natural gas pipeline,
combined electric and natural gas, and telephone utilities are considered
separate industries for purposes of this restriction. Obligations of the U.S.
Government, its agencies and instrumentalities, are not subject to this 25% or
more limitation on industry concentration. In addition, CTRS may, if deemed
advisable, invest 25% or more of its assets in the obligations of commercial
banks.
Notwithstanding Investment Restriction #10, the fund may invest in
securities of other investment companies if deemed advisable by its officers in
connection with the administration of a deferred compensation plan adopted by
Trustees pursuant to an exemptive order granted by the Securities and Exchange
Commission.
For purposes of Investment Restriction #11, the term "oil, gas or other
mineral exploration or development programs" includes oil, gas or other mineral
exploration or development leases. For purposes of Investment Restriction #15,
the Investment Adviser currently interprets the term "commercial banks" to mean
domestic branches of U.S. banks. Finally, CTRS will not invest more that 5% of
its net assets valued at market at the time of purchase, in warrants including
not more than 2% of such net assets in warrants that are not listed on either
the New York Stock Exchange or the American Stock Exchange; however, warrants
acquired in units or attached to securities may be deemed to be without value
for the purpose of this restriction. These policies are not deemed fundamental
and may be changed by the Board of Trustees without shareholder approval.
CTEX may not:
1. Purchase any security (other than securities issued or guaranteed by the
U.S. government or its agencies or instrumentalities), if immediately after and
as a result of such investment (a) with respect to 75% of CTEX's total assets,
more than 5% of CTEX's total assets would be invested in securities of the
issuer, or (b) CTEX would hold more than 10% of any class of securities or of
the total securities of the issuer (for this purpose all indebtedness of an
issuer shall be deemed a single class).
2. Enter into any repurchase agreement if, as a result, more than 10% of the
value of CTEX's total assets would be subject to repurchase agreements maturing
in more than seven days;
3. Buy or sell real estate (including real estate limited partnerships) in
the ordinary course of its business; however, CTEX may invest in securities
secured by real estate or interests therein;
4. Acquire securities subject to restrictions on disposition or securities
for which there is no readily available market (including securities of foreign
issuers not listed on any recognized foreign or domestic exchange), or enter
into repurchase agreements or purchase time deposits maturing in more than
seven days, if, immediately after and as a result, the value of such securities
would exceed, in the aggregate, 10% of CTEX's total assets;
5. Make loans to others, except for the purchase of debt securities, entering
into repurchase agreements or making loans of portfolio securities;
6. Sell securities short, except to the extent that CTEX contemporaneously
owns or has the right to acquire at no additional cost securities identical to
those sold short;
7. Purchase securities on margin, except such short-term credits as may be
necessary for the clearance of purchases or sales of securities;
8. Borrow money, except from banks for temporary or emergency purposes, not
in excess of 5% of the value of CTEX's total assets, excluding the amount
borrowed. This borrowing provision is intended to facilitate the orderly sale
of portfolio securities to accommodate unusually heavy redemption requests, if
they should occur; it is not intended for investment purposes. In the event
that the asset coverage for CTEX's borrowings falls below 300%, CTEX will
reduce within three days (excluding Sundays and holidays), the amount of its
borrowings in order to provide for 300% asset coverage;
9. Mortgage, pledge, or hypothecate its assets, except in an amount up to 5%
of the value of its total assets, but only to secure borrowings for temporary
or emergency purposes;
10. Underwrite any issue of securities, except to the extent that the purchase
of municipal securities directly from the issuer in accordance with CTEX's
investment objective, policies and restrictions, and later resale may be deemed
to be an underwriting;
11. Invest in companies for the purpose of exercising control or management;
12. Knowingly purchase securities of other managed investment companies,
except in connection with a merger, consolidation, acquisition, or
reorganization;
13. Buy or sell commodities or commodity contracts or oil, gas or other
mineral exploration or development programs;
14. Write, purchase or sell puts, calls, straddles, spreads or any combination
thereof, except that this shall not prevent the purchase of municipal
securities which have "put" or "stand-by commitment" features;
15. Purchase or retain the securities of any issuer, if, to the knowledge of
CTEX, those individual officers and Board members of CTEX, its Investment
Adviser, or principal underwriter, each owning beneficially more than 1/2 of 1%
of the securities of such issuer, together own more than 5% of the securities
of such issuer;
16. Invest more than 5% of the value of CTEX's total assets in securities of
any issuer with a record of less than three years continuous operation,
including predecessors;
17. 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.
For the purpose of CTEX's investment restrictions, the identification of the
"issuer" of municipal securities that are not general obligation securities is
made by the Investment Adviser on the basis of the characteristics of the
securities as described, the most significant of which is the ultimate source
of funds for the payment of principal and interest on such securities. For
purposes of investment restriction #13 the term "commodities contract" includes
futures contracts.
Notwithstanding Investment Restriction #12, the fund may invest in
securities of other investment companies if deemed advisable by its officers in
connection with the administration of a deferred compensation plan adopted by
Trustees pursuant to an exemptive order granted by the Securities and Exchange
Commission.
A policy of CTEX which is not deemed a fundamental policy, and thus may be
changed by the Board of Trustees without shareholder approval is that CTEX may
not invest 25% or more of its assets in municipal securities the issuers of
which are located in the same state, unless such securities are guaranteed by
the U.S. Government, or more than 25% of its total assets in securities the
interest on which is paid from revenues of similar type projects (such as
hospitals and health facilities; turnpikes and toll roads; ports and airports;
or colleges and universities). CTEX may invest no more than an aggregate of
20% of its total assets in industrial development securities. There could be
economic, business or political developments which might affect all municipal
securities of a similar category or type or issued by issuers within any
particular geographical area or jurisdiction. To the extent CTEX is required
by any state in order to be characterized as "diversified," it may be required
to invest no more than 5% of its total assets in the securities of any one
issuer, except the U.S. Government, its agencies and instrumentalities.
Finally, CTEX will not invest more than 5% of its net assets valued at market
at the time of purchase, in warrants including not more than 2% of such net
assets in warrants that are not listed on either the New York Stock Exchange or
the American Stock Exchange; however, warrants acquired in units or attached to
securities may be deemed to be without value for the purpose of this
restriction. These policies are also not deemed fundamental.
FUND OFFICERS AND TRUSTEES
Trustees and Trustee Compensation
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE POSITION WITH PRINCIPAL OCCUPATION(S) DURING AGGREGATE TOTAL TOTAL NUMBER
REGISTRANT PAST 5 YEARS (POSITIONS WITHIN THE COMPENSATION COMPENSATION OF FUND
ORGANIZATIONS LISTED MAY HAVE (INCLUDING FROM ALL FUNDS BOARDS ON
CHANGED DURING THIS PERIOD) VOLUNTARILY DEFERRED MANAGED BY WHICH
COMPENSATION/1/) FROM CAPITAL TRUSTEE
THE COMPANY DURING RESEARCH AND SERVES/2/
FISCAL YEAR ENDED MANAGEMENT
SEPTEMBER 30, 1995 COMPANY/2/
<S> <C> <C> <C> <C> <C>
++ H. Frederick Christie Trustee Private Investor. The Mission Group $4,960/3/ CMTA $137,600 18
P.O. Box 144 (non-utility holding company, subsidiary of $2,660/3/ CTEX
Palos Verdes Estates, CA 90274 Southern California Edison Company), $2,660/3/ CTRS
Age: 62 former President and Chief
Executive Officer
Diane C. Creel Trustee Chairwoman, CEO and President, $3,972 CMTA $37,825 12
100 W. Broadway The Earth Technology Corporation $1,400 CTEX
Suite 5000 $2,055 CTRS
Long Beach, CA 90802
Age: 46
Martin Fenton, Jr. Trustee Chairman, Senior Resource Group $4,571/3/ CMTA $103,850 16
4350 Executive Drive (management of senior living centers) $2,271/3/ CTEX
Suite 101 $2,271/3/ CTRS
San Diego, CA 92121-2116
Age: 60
Leonard R. Fuller Trustee President, Fuller & Company, Inc. $4,229 CMTA $38,325 12
4337 Marina City Drive (financial management consulting firm) $1,600 CTEX
Suite 841 ETN $2,311 CTRS
Marina del Rey, CA 90292
Age: 48
+*Abner D. Goldstine President, PEO Capital Research and Management none/4/ none/4/ 12
Age: 65 and Trustee Company, Senior Vice President
and Director
+**Paul G. Haaga, Jr. Chairman of Capital Research and Management none/4/ none/4/ 14
Age: 46 the Board Company, Senior Vice President
and Director
Herbert Hoover III Trustee Private Investor $4,777 CMTA $59,600 14
200 S. Los Robles Avenue $2,477 CTEX
Suite 520 $2,477 CTRS
Pasadena, CA 91101-2431
Age: 67
Richard G. Newman Trustee Chairman, President and CEO, $4,591/3/ CMTA $39,000 12
3250 Wilshire Boulevard AECOM Technology Corporation $2,291/3/ CTEX
Los Angeles, CA 90010-1599 (architectural engineering) $2,291/3/ CTRS
Age: 60
Peter C. Valli Trustee Chairman and CEO, BW/IP $4,300/3/ CMTA $37,000 12
200 Oceangate Boulevard International Inc. (industrial $2,200/3/ CTEX
Suite 900 manufacturing) $2,200/3/ CTRS
Long Beach, CA 90802
Age: 68
</TABLE>
+ Trustees who are considered "interested persons as defined in the Investment
Company Act of 1940, as amended (the "1940 Act"), on
the basis of their affiliation with the fund's Investment Adviser, Capital
Research and Management Company.
++ May be deemed an "interested person" of the fund due to membership on the
board of directors of the parent company of a registered broker-dealer.
* 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 each fund in 1994. 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 Trustee.
/2/ Capital Research and Management Company manages The American Funds Group
consisting of 28 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., 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 Bond Portfolio for Endowments, Inc. and
Endowments, Inc. whose shares may be owned only by tax-exempt organizations.
/3/ Since the plan's adoption, the total amount of deferred compensation
accrued by each fund (plus earnings thereon) for participating Trustees is as
follows: Richard G. Newman ($8,174 - CMTA; $4,529 - CTEX and $4,529 - CTRS),
and Peter C. Valli ($7,871 - CMTA; $4,434 - CTEX; and $4,434 - CTRS). Amounts
deferred and accumulated earnings thereon are not funded and are general
unsecured liabilities of the fund until paid to the Trustee.
/4/ Paul G. Haaga, Jr. and Abner D. Goldstine are affiliated with the
Investment Adviser and, accordingly, receive no compensation from the fund.
OFFICERS
* Teresa S. Cook, VICE PRESIDENT (CMTA AND CTRS ONLY). Capital Research and
Management Company, Vice President - Investment Division.
*** Neil L. Langberg, SENIOR VICE PRESIDENT (CTEX ONLY). Capital Research and
Management Company, Vice President, Investment Management Group
* Sarah P. Lucas, ASSISTANT VICE PRESIDENT. (CMTA AND CTRS ONLY). Capital
Research
and Management Company, Assistant Vice President, Investment Management Group
** Mary C. Cremin, VICE PRESIDENT AND TREASURER. Capital Research and
Management
Company, Senior Vice President - Fund Business Management Group
* Michael J. Downer, VICE PRESIDENT. Capital Research and Management Company,
Senior Vice President - Fund Business Management Group
* Julie F. Williams, SECRETARY. Capital Research and Management Company,
Vice President - Fund Business Management Group
* Kimberly S. Verdick, ASSISTANT SECRETARY. Capital Research and Management
Company,
Assistant Vice President - Fund Business Management Group
** Nymia M. Cucueco, ASSISTANT TREASURER (CTEX ONLY). Capital Research and
Management Company, Vice President - Fund Business Management Group
** Anthony W. Hynes, Jr., ASSISTANT TREASURER. Capital Research and Management
Company, Vice President - Fund Business Management Group
* Address is 333 South Hope Street, Los Angeles, CA 90071
** Address is 135 South State College Boulevard, Brea, CA 92621
*** Address is 11100 Santa Monica Boulevard, Los Angeles, CA 90025
No compensation is paid by a fund to any officer or Trustee who is a
director or officer of the Investment Adviser. CMTA pays annual fees of $3,500
to Trustees who are not affiliated with the Investment Adviser; CTEX and CTRS
each pay an annual fee of $1,200 to Trustees who are not affiliated with the
Investment Adviser, plus each fund pays $200 for each Board of Trustees meeting
attended, plus $200 for each meeting attended as a member of a committee of the
Board of Trustees. The Trustees may elect, on a voluntary basis, to defer all
or a portion of these fees through a deferred compensation plan in effect for
each fund. The funds also reimburse certain expenses of the Trustees who are
not affiliated with the Investment Adviser. As of November 1, 1995, the
officers and Trustees and their families as a group, owned beneficially or of
record fewer than 1% of the outstanding shares of a fund.
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad, with a staff of professionals, many
of whom have a number of years of investment experience. 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.
An affiliate of the Investment Adviser compiles indices for major stock
markets around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
The Investment Adviser is responsible for more than $100 billion of stocks,
bonds and money market instruments and serves over five million investors of
all types throughout the world. These investors include privately owned
businesses and large corporations as well as schools, colleges, foundations and
other non-profit and tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - Each fund has an Investment
Advisory and Service Agreement (the "Agreement") with the Investment Adviser
which provides that the Investment Adviser shall determine which securities
shall be purchased or sold by each fund and provides certain services to each
fund.
The CMTA Agreement will continue in effect until May 31, 1996, unless
sooner terminated. The CTEX Agreement will continue in effect until October 1,
1996, unless sooner terminated, and the CTRS Agreement will continue in effect
until October 31, 1996, unless sooner terminated. Each Agreement 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. Each 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
qualified persons to perform the executive, administrative, clerical and
bookkeeping functions of each fund; provides suitable office space and
utilities; and provides necessary small office equipment, and general purpose
accounting forms, supplies, and postage used at the office of the fund.
The Investment Adviser has agreed to waive its fees by any amount necessary to
assure that such expenses do not exceed applicable expense limitations in any
state in which the funds' shares are being offered for sale. Only one state,
California, continues to impose expense limitations on funds registered for
sale therein. The California provision currently limits annual expenses to the
sum of 2-1/2% of the first $30 million of average net assets, 2% of the next
$70 million and 1-1/2% of the remaining average net assets. Rule 12b-1
distribution expenses would be excluded from this limit. Other expenses which
are not subject to these limitations include interest, taxes, brokerage
commissions, transaction costs, and extraordinary items such as litigation, as
well as, for purposes of the state expense limitations, any amounts excludable
under the applicable regulation. Expenditures, including costs incurred in
connection with the purchase or sale of portfolio securities, which are
capitalized in accordance with generally accepted accounting principles
applicable to investment companies, are accounted for as capital items and not
as expenses.
CMTA The Agreement provides that the Investment Adviser will reimburse CMTA
for any expenses incurred by CMTA in any fiscal year, exclusive of interest,
taxes, brokerage costs and extraordinary items such as litigation and
acquisitions, to the extent such expenses exceed the lesser of 25% of gross
income for the preceding year or the sum of (a) 1-1/2% of the average daily net
assets of the preceding year up to and including $30 million, and (b) 1% of any
excess of average daily net assets of the preceding year over $30 million. The
Investment Advisory fee is included as an expense of CMTA and is subject to the
expense limitation described in the preceding sentence.
CTEX The Investment Adviser has agreed to bear any CTEX expenses (with the
exception of interest, taxes, brokerage costs and extraordinary expenses such
as litigation and acquisitions) in excess of 0.75% of CTEX's average net assets
per annum, subject to reimbursement by CTEX, during a period which will
terminate at the earlier of (i) such time as no reimbursement has been required
for a period of 12 consecutive months, provided no advances are outstanding, or
(ii) October 2, 1999. Additionally, the Investment Adviser voluntarily agreed
to waive its fees to the extent necessary to ensure that fund expenses do not
exceed 0.65% of the average daily net assets. There can be no assurance that
this voluntary fee waiver will continue in the future. Each month, to the
extent CTEX owes money to the Investment Adviser pursuant to this provision of
the Agreement and CTEX's annualized expense ratio for the month is below 0.75%,
CTEX will reimburse the Investment Adviser until CTEX's annualized expense
ratio equals 0.75% or the debt is repaid, whichever comes first.
CTRS The Investment Adviser has agreed to bear any CTRS expenses (with the
exception of interest, taxes, brokerage costs and extraordinary expenses such
as litigation and acquisitions) in excess of 0.75% of CTRS's average net assets
per annum, subject to reimbursement by CTRS during a period which will
terminate at the earlier of (i) such time as no reimbursement has been required
for a period of 12 consecutive months, provided no advances are outstanding, or
(ii) February 1, 2001. Additionally, the Investment Adviser voluntarily agreed
to waive its fees to the extent necessary to ensure that fund expenses do not
exceed 0.675% of the average daily net assets. There can be no assurance that
this voluntary fee waiver will continue in the future. Each month, to the
extent CTRS owes money to the Investment Adviser pursuant to this provision of
the Agreement and CTRS' annualized expense ratio for the month is below 0.75%,
CTRS will reimburse the Investment Adviser until CTRS' annualized expense ratio
equals 0.75% or the debt is repaid, whichever comes first
During the fiscal years ended September 30, 1995, 1994, and 1993, the
Investment Adviser's total fees from CMTA amounted to $9,526,000, $7,882,000,
and $6,739,000, respectively. During the fiscal years ended September 30,
1995, 1994, and 1993, the Investment Adviser's total fees from CTEX amounted to
$699,000, $648,000, and $493,000, respectively. Voluntary fee waivers for CTEX
amounted to $161,000 during the fiscal year ended September 30, 1995. During
the fiscal years ended 1995, 1994, and 1993, the Investment Adviser's total
fees from CTRS amounted to $637,000 $508,000, and $337,000.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. is the principal
underwriter of each fund's shares. The funds have each adopted a Plan of
Distribution (the "Plan"), pursuant to rule 12b-1 under the 1940 Act (see
"Principal Underwriter" in the Prospectus). The Principal Underwriter receives
amounts payable pursuant to the Plan (see below).
As required by rule 12b-1, the Plan (together with the Principal Underwriting
Agreement) has been approved by the full Board of Trustees and separately by a
majority of the Trustees who are not "interested persons" of the funds and who
have no direct or indirect financial interest in the operation of the Plan or
the Principal Underwriting Agreement, and the Plan has been approved by the
vote of a majority of the outstanding voting securities of each fund. The
officers and Trustees who are "interested persons" of the funds due to present
or past affiliations with the Investment Adviser and related companies may be
considered to have a direct or indirect financial interest in the operation of
the Plan. Potential benefits of the Plan to the funds are improved shareholder
services, savings to the funds in transfer agency costs, savings to the funds
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 funds shall be committed to the discretion of the
Trustees who are not interested persons during the existence of the Plan. The
Plan is reviewed quarterly and must be renewed annually by the Board of
Trustees.
Under the Plan each fund may expend up to 0.15% of its average net assets
annually to finance any activity which is primarily intended to result in the
sale of the fund's shares, provided the funds' Boards of Trustees have approved
the category of expenses for which payment is being made. In this regard, each
fund's Board of Trustees has approved one category of expenses: a service fee
to be paid to qualified dealers. During the fiscal year ended September 30,
1995, CMTA, CTRS and CTEX paid $2,083,000, $172,000 and $96,000, respectively,
to the Principal Underwriter under the Plan (compensation to dealers). As of
September 30, 1995, distribution expenses accrued and unpaid were $111,000,
$13,000 and $7,000 for CMTA, CTRS and CTEX, respectively.
DIVIDENDS AND TAXES
DAILY INCOME DIVIDENDS - A dividend from net investment income is declared each
day on shares of each fund. This dividend is payable to everyone who was a
shareholder at the close of business the previous day. Accordingly, when
shares are purchased dividends begin to accrue on the day following receipt by
the Transfer Agent of payment for the shares; when shares are redeemed, the
shares are entitled to the dividend declared on the day the redemption request
is received by the Transfer Agent. Dividends are automatically reinvested in
shares, on the last business day of the month, at net asset value (without
sales charge), unless a shareholder otherwise instructs the Transfer Agent in
writing. Shareholders so requesting will be mailed checks in the amount of the
accumulated dividends.
Under the penny-rounding method of pricing (see "Purchase of Shares"), each
fund rounds its per share net asset value to the nearer cent to maintain a
stable net asset value of $1.00 per share. Accordingly its share price
ordinarily would not reflect realized or unrealized gains or losses unless such
gains or losses were to cause the net asset value to deviate from $1.00 by one
half-cent or more. Pursuant to Securities and Exchange Commission regulations,
the Trustees have undertaken, as a particular responsibility within their
overall duty of care owed to shareholders, to assure to the extent reasonably
practicable that each fund's net asset value per share, rounded to the nearer
cent, will not deviate from $1.00. Among the steps that could be taken to
maintain the net asset value at $1.00 when realized or unrealized gains or
losses approached one half-cent per share would be to reflect all or a portion
of such gains or losses in the daily dividends declared. This would cause the
amount of the daily dividends to fluctuate and to deviate from a fund's net
investment income for those days, and could cause the dividend for a particular
day to be negative. In that event a fund would offset any such amount against
the dividends that had been accrued but not yet paid for that month.
Alternatively, each fund has reserved the right to adjust its total number of
shares outstanding, if deemed advisable by the Trustees, in order to maintain
the net asset value of its shares at $1.00. This would be done either by
regarding each shareholder as having contributed to the capital of the fund the
number of full and fractional shares that proportionately represents the
excess, thereby reducing the number of outstanding shares, or by declaring a
stock dividend and increasing the number of outstanding shares. Each
shareholder will be deemed to have agreed to such procedure by investing in the
fund. Such action would not change a shareholder's pro rata share of net
assets, but would reflect the increase or decrease in the value of the
shareholder's holdings which resulted from the change in net asset value.
TAXES - Each fund intends to meet all the requirements and has elected the tax
status of a "regulated investment company" under the provisions of Subchapter
M of the Internal Revenue Code of 1986, (the "Code"). Under Subchapter M, if
each fund distributes within specified times at least 90% of the sum of its
investment company taxable income and tax-exempt income, if any, it will be
taxed only on that portion, if any, of the investment company taxable income
which it retains.
To qualify, each fund must (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 stock or securities or currencies; (b) derive
less than 30% of its gross income from the sale or other disposition of stock
or securities held less than three months; and (c) diversify its holdings so
that, at the end of each fiscal quarter, (i) at least 50% of the market value
of each fund's assets is represented by cash, cash items, U.S. Government
securities and securities of other regulated investment companies, and other
securities which must be limited, in respect of any one issuer, to an amount
not greater than 5% of each 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 in two or more issuers which each fund controls and which are
engaged in the same or similar trades or businesses or related 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 net income 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 each fund from
its current year's ordinary income and capital gain net income and (ii) any
amount on which each fund pays income tax during the periods described above.
The funds intend to meet these distribution requirements to avoid the excise
tax liability.
The funds do not ordinarily realize short- or long-term capital gains or
losses on sales of securities. If a fund should realize gains or losses, it
would distribute to shareholders all of the excess of net long-term capital
gain over net short-term capital loss on sales of securities. Although each
fund generally maintains a stable net asset value of $1.00 per share, if the
net asset value of shares of each fund should, by reason of a distribution of
realized capital gains, be reduced below a shareholder's cost, such
distribution would to that extent be a return of capital to that shareholder
even though taxable to the shareholder, and a sale of shares by a shareholder
at net asset value at that time would establish a capital loss for federal tax
purposes. See also "Purchase of Shares" below.
If for any taxable year a fund does not qualify for the special tax treatment
afforded regulated investment companies, all of its taxable income will be
subject to tax at regular corporate rates (without any deduction for
distributions to its shareholders). In such event, dividend distributions
would be taxable to shareholders to the extent of earnings and profits.
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 shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose 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 shares.
As of the date of this statement of additional information, the maximum
individual tax rate applicable to ordinary income is 39.6% (effective tax rates
may be higher for some individuals due to phase out of exemptions and
elimination of deductions); the maximum individual tax rate applicable to net
capital gains is 28%; and the maximum corporate tax applicable to ordinary
income and net capital gains is 35%. However, to eliminate the benefit of
lower marginal corporate income tax rates, corporations which have taxable
income in excess of $100,000 in a taxable year will be required to pay an
additional amount of tax of up to $11,750, and corporations which have taxable
income in excess of $15,000,000 for a taxable year will be required to pay an
additional amount of income tax up to $100,000. Naturally, the amount of tax
payable by a taxpayer will be affected by a combination of tax law rules
covering, E.G., deductions, credits, deferrals, exemptions, sources of income
and other matters. Under the Code, an individual is entitled to establish an
Individual Retirement Account ("IRA") each year (prior to the tax return filing
deadline for that year) whereby earnings on investments are tax-deferred. In
addition, in some cases, the IRA contribution itself may be deductible.
STATE TAXES - Information relating to the percentage of CTEX's income derived
from securities issued in a particular state is available upon request from the
Transfer Agent at year end.
Since all of CTRS' dividends are expected to be attributable to income on
U.S. Treasury securities, they are generally exempt from state personal income
taxes. Also, some states do not have personal income taxes. CTRS believes
that, as of the date of this publication, neither the District of Columbia nor
any state impose an income tax on dividends attributable to income on U.S.
Treasury securities paid by the fund to individuals. However, other taxes may
apply to dividends paid by CTRS to individual shareholders. Further, any
distributions of capital gains will not be exempt from income taxes. Becauses
tax laws vary from state to state and may change over time, you should consult
your tax adviser or state tax authorities regarding the tax status of
distributions from CTRS. Corporate shareholders may be subject to income tax
or other types of tax on dividends they receive, even in those states that do
not impose an income tax on distributions to individual shareholders of CTRS.
Corporate shareholders should therefore seek advice from their tax adviser
regarding the tax treatment of distributions from CTRS.
ADDITIONAL INFORMATION CONCERNING TAXES
The following is only a summary of certain additional federal, state and local
tax considerations generally affecting the funds and their shareholders. No
attempt is made to present a detailed explanation of the tax treatment of the
funds or their shareholders, and the discussion here and in the funds'
Prospectus is not intended as a substitute for careful tax planning. Investors
should consult their own tax advisers for additional details as to their
particular tax situations.
CTEX
GENERAL - CTEX is not intended to constitute a balanced investment program and
is not designed for investors seeking capital appreciation or maximum
tax-exempt income irrespective of fluctuations in principal. Shares of CTEX
would generally not be suitable for tax-exempt institutions or tax-deferred
retirement plans (E.G., corporate-type plans, Keogh-type plans and IRA's).
Such retirement plans would not gain any benefit from the tax-exempt nature of
CTEX's dividends because such dividends would be ultimately taxable to
beneficiaries when distributed to them. In addition, CTEX may not be an
appropriate investment for entities which are "substantial users" of facilities
financed by private activity bonds or "related persons" thereof. "Substantial
user" is defined under U.S. Treasury Regulations to include a non-exempt person
who regularly uses a part of such facilities in his trade or business and whose
gross revenues derived with respect to the facilities financed by the issuance
of bonds are more than 5% of the total revenues derived by all users of such
facilities, or who occupies more than 5% of the usable area of such facilities
or for whom such facilities or a part thereof were specifically constructed,
reconstructed or acquired. "Related persons" include certain related natural
persons, affiliated corporations, partnerships and their partners and S
Corporations and their shareholders.
The percentage of total dividends paid by CTEX with respect to any taxable
year which qualify for exclusion from gross income ("exempt-interest
dividends") will be the same for all shareholders receiving dividends during
such year. In order for CTEX to pay exempt-interest dividends during any
taxable year, at the close of each fiscal quarter at least 50% of the aggregate
value of CTEX's assets must consist of tax-exempt securities. Not later than
60 days after the close of its taxable year, CTEX will notify each shareholder
of the portion of the dividends paid by CTEX to the shareholder with respect to
such taxable year which constitutes exempt-interest dividends. Shareholders
are required by the Code to report to the federal government all
exempt-interest dividends received from the fund (as well as all other similar
interest). The aggregate amount of dividends so designated cannot, however,
exceed the excess of the amount of interest excludable from gross income from
tax under Section 103 of the Code received by CTEX during the taxable year over
any amounts disallowed as deductions under Sections 265 and 171(a)(2) of the
Code.
Interest on indebtedness incurred by a shareholder to purchase or carry CTEX
shares is not deductible for federal income tax purposes if CTEX distributes
exempt-interest dividends during the shareholder's taxable year. Although CTEX
normally maintains a constant net asset value of $1.00 per share, in the event
a shareholder receives an exempt-interest dividend with respect to any share
and such share is held for six months or less, and is sold or exchanged at a
loss, such loss will be disallowed to the extent of the amount of such
exempt-interest dividend.
PURCHASE OF SHARES
The price you pay for fund shares (normally $1.00), is the net asset value
per share which is calculated once daily at the close of trading (currently
4:00 p.m., New York time) each day the New York Stock Exchange is open as set
forth below. The New York Stock Exchange is currently closed on weekends and
on the following holidays: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day.
The valuation of each fund's portfolio securities and calculation of its net
asset value are based upon the penny-rounding method of pricing pursuant to
Securities and Exchange Commission regulations. Under the Securities and
Exchange Commission regulations permitting the use of the penny-rounding method
of pricing, each fund must maintain a dollar-weighted average portfolio
maturity of 90 days or less, purchase instruments having remaining maturities
of 13 months or less only (25 months or less in the case of U.S. Government
securities), and invest only in securities determined by the Board of Trustees
to be of high quality with minimal credit risks.
1. All securities with 60 days or less to maturity are amortized to maturity
based on their cost if acquired within 60 days of maturity or, if already held
on the 60th day, based on the value determined on the 61st day. The maturities
of variable or floating rate instruments, with the right to resell them at an
agreed-upon price to the issuer or dealer, are deemed to be the time remaining
until the later of the next interest adjustment date or until they can be
resold.
Other securities with more than 60 days remaining to maturity shall be valued
at prices obtained from a pricing service selected by the Investment Adviser,
except that, where such prices are not available or where the Investment
Adviser has determined that such prices do not reflect current market value,
they shall be valued at the mean between current bid and ask quotations
obtained from one or more dealers in such securities.
Where market prices or market quotations are not readily available, securities
are valued at fair value as determined in good faith by the Board of Trustees
or a committee thereof. The fair value of all other assets is added to the
value of securities to arrive at the total assets.
2. There are deducted from the total assets, thus determined, the liabilities,
including proper accruals of expense items; and
3. The 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. The net asset value of each share will normally remain constant at
$1.00.
Any purchase order may be rejected by the Principal Underwriter or by the
funds.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables shareholders
to make regular monthly or quarterly investments in shares through automatic
charges to their bank accounts. With shareholder authorization and bank
approval, the Transfer Agent will automatically charge the bank account for the
amount specified ($50 minimum), which will be automatically invested in shares
at the offering price on or about the 10th day of the month (or on or about the
15th day of the month in the case of accounts for retirement plans where
Capital Guardian Trust Company serves as trustee or custodian.) Bank accounts
will be charged on the day or a few days before investments are credited,
depending on the bank's capabilities, and shareholders will receive a
confirmation statement at least quarterly. Participation in the plan will
begin within 30 days after receipt of the account application. If the
shareholder's bank account cannot be charged due to insufficient funds, a
stop-payment order or closing of your account, the plan may be terminated and
the related investment reversed. The shareholder may change the amount of the
investment or discontinue the plan at any time by writing the Transfer Agent.
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.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - A shareholder in one fund
may elect to cross-reinvest dividends or dividends and capital gain
distributions paid by that fund (the "paying fund") into any other fund in The
American Funds Group (the "receiving fund") subject to the following
conditions: (i) the aggregate value of the shareholder's account(s) in the
paying fund(s) must equal or exceed $5,000 (this condition is waived if the
value of the account in the receiving fund equals or exceeds that fund's
minimum initial investment requirement), (ii) as long as the value of the
account in the receiving fund is below that fund's minimum initial investment
requirement, dividends and capital gain distributions paid by the receiving
fund must be automatically reinvested in the receiving fund, and (iii) if this
privilege is discontinued with respect to a particular receiving fund, the
value of the account in that fund must equal or exceed the fund's minimum
initial investment requirement or the fund shall have the right, if the
shareholder fails to increase the value of the account to such minimum within
90 days after being notified of the deficiency, automatically to redeem the
account and send the proceeds to the shareholder. These cross-reinvestments of
dividends and capital gain distributions will be at net asset value (without
sales charge).
CHECKWRITING - When the checks you write are presented to The Chase Manhattan
Bank for payment, the bank will instruct the Transfer Agent to withdraw the
appropriate number of shares from your account (provided payment for the shares
has been collected). The bank's rules and regulations governing such checking
accounts include the right of the bank not to honor checks in amounts exceeding
the value of the account at the time the check is presented for payment. Each
month cancelled checks will be returned to you. Generally, you pay no fee for
this checkwriting service; however, reasonable service charges for "regular or
frequent use" of this service may be assessed in the future. Besides being
convenient, this procedure enables you to continue earning daily income
dividends on your money until your checks actually clear.
EXECUTION OF PORTFOLIO TRANSACTIONS
Orders for each fund's portfolio securities transactions are placed by the
Investment Adviser which strives to obtain the best available prices, taking
into account the costs and promptness of executions. Fixed-income securities
are generally traded on a "net" basis with a dealer acting as principal for its
own account without a stated commission, although the price of the security
usually includes a profit to the dealer. In underwritten offerings, securities
are usually purchased at a fixed price which includes an amount of compensation
to the underwriter, generally referred to as the underwriter's concession or
discount. On occasion, securities also may be purchased directly from an
issuer, in which case no commissions or discounts are paid.
Subject to the above policy, in circumstances in which two or more brokers are
in a position to offer comparable prices and executions, preference may be
given to brokers that have sold shares of the funds or have provided investment
research, statistical, and other related services to the Investment Adviser for
the benefit of the funds and/or of other funds served by the Investment
Adviser.
There are occasions on which portfolio transactions for the funds 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 funds, they are effected only when the
Investment Adviser believes that to do so is the interest of the funds. When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the funds, including
proceeds from the sale of shares of the funds and of securities in either
fund's portfolio, are held by The Chase Manhattan Bank, N.A., One Chase
Manhattan Plaza, New York, NY 10081, as Custodian.
INDEPENDENT ACCOUNTANTS - Price Waterhouse LLP, 400 South Hope Street, Los
Angeles, CA 90071, has served as the funds' independent accountant since
inception, 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 have
been so included in reliance on the report of the independent auditors given on
the authority of said firm as experts in accounting and auditing.
REPORTS TO SHAREHOLDERS - Each fund's fiscal year ends on September 30.
Shareholders are provided, at least semiannually, with reports showing the
investment portfolio and financial statements audited annually by each fund's
independent accountants, Price Waterhouse LLP, whose selection is determined
annually by the Trustees. The financial statements contained in the Annual
Report are included in this Statement of Additional Information.
SHAREHOLDER AND TRUSTEE RESPONSIBILITY - Under the laws of certain states,
including Massachusetts, where the funds were organized, and California, where
each fund's principal office is located, shareholders of a Massachusetts
business trust may, under certain circumstances, be held personally liable as
partners for the obligations of each fund. However, the risk of a shareholder
incurring any financial loss on account of shareholder liability is limited to
circumstances in which each fund itself would be unable to meet its
obligations. Each Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of each fund and provides that
notice of the disclaimer may be given in each agreement, obligation, or
instrument which is entered into or executed by each fund or Trustees. The
Declaration of Trust provides for indemnification out of fund property of any
shareholder held personally liable for the obligations of each fund and also
provides for each fund to reimburse such shareholder for all legal and other
expenses reasonably incurred in connection with any such claim or liability.
Under the Declaration of Trust, the Trustees or officers are not liable for
actions or failure to act; however, they are not protected from liability by
reason of their willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of their office. Each fund
will provide indemnification to its Trustees and officers as authorized by its
By-Laws and by the 1940 Act and the rules and regulations thereunder.
SHAREHOLDER VOTING RIGHTS - All shares of the funds have equal voting rights
and may be voted in the elections of Trustees and on other matters submitted to
the vote of shareholders. As permitted by Massachusetts law, there will
normally be no meetings of shareholders for the purpose of electing Trustees
unless and until such time as less than a majority of the Trustees holding
office have been elected by shareholders. At that time, the Trustees then in
office will call a shareholders meeting for the election of Trustees. The
Trustees must call a meeting of shareholders for the purpose of voting upon the
question of removal of any trustee when requested to do so by the record
holders of 10% of the outstanding shares. At such meeting, a trustee may be
removed after the holders of record of not less than two-thirds of the
outstanding shares have declared that the trustee be removed either by
declaration in writing or by votes cast in person or by proxy. Except as set
forth above, the Trustees shall continue to hold office and may appoint
successor Trustees. The shares do not have cumulative voting rights, which
means that the holders of a majority of the shares voting for the election of
Trustees can elect all the Trustees. No amendment may be made to any fund's
Declaration of Trust without the affirmative vote of a majority of the
outstanding shares of the fund except that amendments may be made upon the sole
approval of the Trustees to conform the Declaration of Trust to the
requirements of applicable Federal laws or regulations or the requirements of
the regulated investment company provisions of the Code, however, the Trustees
shall not be held liable for failing to do so. If not terminated by the vote
or written consent of a majority of the outstanding shares, each fund will
continue indefinitely.
INVESTMENT RESULTS
Each fund may from time to time provide yield information (including CTEX or
CTRS tax-equivalent yield information) or comparisons of each fund's yield to
various averages in advertisements or in reports furnished to current or
prospective shareholders. Yield will be calculated on a seven-day,
tax-equivalent and effective basis, as appropriate, pursuant to formulas
prescribed by the Securities and Exchange Commission:
Seven-day yield = (net change in account value x /365//7)
Tax-equivalent yield = tax-exempt portion of seven-day yield/(1-stated income
tax rate) + taxable portion of seven day yield
Effective yield* = [1 + (net change in account value) /1//7]/365/
*The effective yield will assume a year's compounding of the seven-day yield.
CMTA The seven-day and effective yields are calculated as follows:
ASSUMPTIONS:
Value of hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.0000000
Value of same account* (excluding capital changes) at the end of the
seven-day period ending September 30, 1995: $1.00100885
*Value includes additional shares acquired with dividends paid on the original
share.
CALCULATION: Ending account value: $1.00100885
Less beginning account value: $1.00000000
Net change in account value: $0.00100885
Seven-day yield = (1.00100885 X /365/7/) = 5.26%
Effective yield = [1 + ( 0.00100885) /1//7]/365/ = 5.40%
CTRS The seven-day and effective yields are calculated as follows:
ASSUMPTIONS:
Value of hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.0000000
Value of same account* (excluding capital changes) at the end of the
seven-day period ending September 30, 1995: $1.00093243
*Value includes additional shares acquired with dividends paid on the original
share.
CALCULATION: Ending account value: $1.00093243
Less beginning account value: $1.00000000
Net change in account value: $0.00093243
Seven-day yield = (0.00093243 X /365/7/) = 4.86%
Effective yield = [1 + (0.00093243) /1//7]/365/ = 4.98%
CTEX The seven-day, effective and tax-equivalent yields are calculated as
follows:
ASSUMPTIONS:
Value of hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.0000000
Value of same account* (excluding capital changes) at the end of the
seven-day period ending September 30, 1995: $1.00061145
*Value includes additional shares acquired with dividends paid on the original
share.
CALCULATION: Ending account value: $1.00061145
Less beginning account value: $1.00000000
Net change in account value: $0.00061145
Tax-exempt portion of net change: $0.00061145
Taxable portion of net change: $ -0-
Seven-day yield = ($0.00061145 X /365/7/) = 3.19%
Seven-day tax equivalent yield = ($0.00061145 X /365/7/(1-0.396))= 5.28%
Effective yield = [1 + ($0.00061145) 1/7]/365/ = 3.24%
Each fund's investment results may also be calculated for longer periods in
accordance with the following method: by subtracting (a) the net asset value
of one share at the beginning of the period, from (b) the net asset value of
all shares an investor would own at the end of the period for the share held at
the beginning of the period (assuming reinvestment of all dividends and
distributions) and dividing by (c) the net asset value per share at the
beginning of the period. The resulting percentage indicates the positive or
negative rate of return that an investor would have earned from reinvested
dividends and distributions and any changes in share price during the period.
Based on the foregoing formula, the lifetime return of CMTA was 319.7% (for the
period 11/3/76 through 9/30/94), the lifetime return of CTEX was 21.2% (for the
period 10/24/89 through 9/30/95), and the lifetime return of CTRS was 18.6%
(for the period 2/1/91 through 9/30/95).
Each fund's investment results will vary from time to time depending upon
market conditions, the composition of each fund's portfolio and operating
expenses of each fund, so that any yield figure should not be considered
representative of what an investment in each fund may earn in any future
period. These factors and possible differences in calculation methods should
be considered when comparing each fund's investment results with those
published for other investment companies, other investment vehicles and
averages. Investment results also should be considered relative to the risks
associated with the investment objective and policies.
CMTA VS. MONEY MARKET FUND AVERAGE ("MMFA") AND BANK AVERAGE ("BA")
The information below permits investors to compare the results of similar
investment vehicles.
<TABLE>
<CAPTION>
5-Year Period CMTA MMFA* BA**
<S> <C> <C> <C>
10/1/89 - 9/30/95 +22.7 +23.1 +22.5
10-Year Period
1985 - 1995 75.6% 73.1% 71.1%
1984 - 1994 80.9 78.0 79.9
1983 - 1993 93.6 89.3 90.9
1982 - 1992 105.7 100.0 102.3
1981 - 1991 126.2 118.6 114.4
1980 - 1990 149.2 135.9 122.6
1979 - 1989 159.8 NA 125.3
1978 - 1988 162.0 NA 125.1
1977 - 1987 159.8 NA 124.9
</TABLE>
* BASED ON YIELDS COMPILED BY THE FOLLOWING PUBLICATIONS: FOR FIGURES PRIOR TO
1/1/91, THE SOURCE IS THE MONEY MARKET FUND SURVEY PUBLISHED BY SURVEY
PUBLICATIONS; FOR FIGURES BEGINNING 1/1/91, IBC/DONOGHUE'S MONEY FUND REPORT IS
USED. THESE PUBLICATIONS PROVIDE 30-DAY AVERAGE YIELD FIGURES ON "X" NUMBER OF
MONEY MARKET FUNDS. THIS YIELD FIGURE IS MATHEMATICALLY CONVERTED TO A
PER-SHARE DIVIDEND AMOUNT WHICH IS THEN USED TO PRODUCE HYPOTHETICAL RESULTS
FOR THE AVERAGE MONEY MARKET FUND.
** CALCULATED FROM FIGURES SUPPLIED BY THE U.S. LEAGUE OF SAVINGS INSTITUTIONS
AND THE FEDERAL RESERVE BOARD WHICH ARE BASED ON EFFECTIVE ANNUAL RATES OF
INTEREST ON BOTH PASSBOOK AND CERTIFICATE ACCOUNTS. SAVINGS ACCOUNTS OFFER A
GUARANTEED RETURN OF PRINCIPAL AND A FIXED RATE OF INTEREST BUT NO OPPORTUNITY
FOR CAPITAL GROWTH.
CTEX VS. MONEY MARKET FUND AVERAGE ("MMFA") AND BANK AVERAGE ("BA")
<TABLE>
<CAPTION>
Tax-Exempt
Lifetime Period CTEX MMFA/#/ BA
<S> <C> <C> <C>
10/24/89 - 9/30/95 +21.2% +21.4% +31.4%
</TABLE>
# SAME AS * EXCEPT IT IS FOR TAX-EXEMPT MONEY MARKET FUNDS
CTRS VS. MONEY MARKET FUND AVERAGE ("MMFA") AND BANK AVERAGE ("BA")
<TABLE>
<CAPTION>
Lifetime Period CTRS Govt BA
MMFA/@/
<S> <C> <C> <C>
2/1/91 - 9/30/95 +18.6% +19.5% +20.4%
</TABLE>
@ SAME AS * EXCEPT IT IS FOR GOVERNMENT MONEY MARKET FUNDS
DESCRIPTION OF RATINGS FOR DEBT SECURITIES
COMMERCIAL PAPER RATINGS
STANDARD & POOR'S CORPORATION: "A-1" and "A-2" are the two highest commercial
paper rating categories and are described as follows:
"A-1 This designation indicates that the degree of safety regarding timely
payment is either overwhelming or very strong."
"A-2 Capacity for timely payment on issues with this designation is strong.
However, the relative degree of safety is not as high as for issues designated
'A-1'."
MOODY'S INVESTORS SERVICE, INC.: "Prime-1" and "Prime-2" are the two highest
commercial paper rating categories and are described as follows:
"ISSUERS RATED PRIME-1 (or related supporting institutions) 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 earning coverage of fixed financial charges and high
internal cash generation.
- - Well established access to a range of financial markets and assured sources
of alternate liquidity."
"ISSUERS RATED PRIME-2 (or related supporting institutions) 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 alternative liquidity is
maintained."
BOND RATINGS
STANDARD & POOR'S CORPORATION: "AAA" and "AA" are the two highest bond rating
categories, and are described as follows:
"Debt rated 'AAA' has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong."
"Debt rated 'AA' has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree."
MOODY'S INVESTORS SERVICE, INC.: "Aaa" and "Aa" are the two highest bond
rating categories, and are described as follows:
"Bonds rated Aaa are judged to be of the best quality. They 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 issues."
"Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group, they comprise what are generally known as high-grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities, or fluctuation of protective elements may be
of greater amplitude, or there may be other elements present which make the
long-term risks appear somewhat larger than the Aaa securities."
NOTE RATINGS
STANDARD & POOR'S CORPORATION: "SP-1" and "SP-2" are the two highest note
rating categories, and are described as follows:
"SP-1 Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be given
a plus (+) designation."
"SP-2 Satisfactory capacity to pay principal and interest."
MOODY'S INVESTORS SERVICE, INC.: "MIG-1" and "MIG-2" are the two highest
note rating categories, and are described as follows:
"MIG 1: This designation denotes best quality. There is present strong
protection by established cash flows, superior liquidity support or
demonstrated broadbased access to the market for refinancing."
"MIG 2: This designation denotes high quality. Margins of protection are ample
although not as large as in the preceding group."
The Tax-Exempt Money Fund of America
Investment Portfolio, September 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Acquisition (000) (000)
Municipal Securities
- --------------------------------------------------- ----------- ---------- ---------
ALABAMA - 1.93%
The Industrial Development Board of the City of
Montgomery, Pollution Control and Solid Waste
Disposal Revenue Refunding Bonds (General
Electric Company Project), Series 1990, TECP,
3.60% 11/7/95 3.60% $2,000 $2,000
Special Care Facilities Financing Authority of
the City of Montgomery, Hospital Depreciable
Assets Revenue Bonds, Series 1985, FGIC
Insured, VRDN, 4.25% 10/4/95* 4.25 900 900
ALASKA - 5.32%
Housing Finance Corporation General
Purpose Bonds, 1991 Series C, VRDN,
4.35% 10/2/95* 4.35 3,500 3,500
City of Valdez, Marine Terminal Revenue
Refunding Bonds (ARCO Transportation
Alaska, Inc. Project):
1994 Series C, TECP, 3.50% 10/5/95 3.50 1,300 1,300
1994 Series A, TECP, 3.55% 11/10/95 3.55 2,000 2,000
1994 Series A, TECP, 3.70% 11/27/95 3.70 1,200 1,200
ARIZONA - 4.22%
The Industrial Development Authority of the City
of Chandler, Floating Rate Monthly Demand
Industrial Development Revenue Bonds
(Parsons Municipal Services, Inc. Project),
Series 1983, VRDN, 4.00% 10/13/95* 4.00 1,000 1,000
City of Mesa Municipal Development Corporation,
Special Tax Update Bonds, Series 1985,
TECP, 3.55% 10/24/95 3.55 1,000 1,000
Salt River Project Agricultural Improvement
and Power District, Promissory Notes, TECP:
3.50% 11/2/95 3.50 2,350 2,350
3.70% 11/6/95 3.70 2,000 2,000
ARKANSAS - 1.33%
Board of Trustees of the University of Arkansas
Various Facility Revenue Bonds (UAMS
Campus), Series 1994, VRDN, 4.35% 10/2/95* 4.35 2,000 2,000
CALIFORNIA - 4.89%
State 1994 Revenue Anticipation Warrants,
FGIC Insured, 5.75% 4/25/96 3.80 4,000 4,042
County of Los Angeles, 1994-95 Tax and
Revenue Anticipation Notes, 4.50% 7/1/96 3.97 3,300 3,312
FLORIDA - 4.30%
Sunshine State Governmental Financing
Commission Revenue Bonds, Series 1986, TECP,
3.55% 11/6/95 3.55 1,000 1,000
Jacksonville Electric Authority Electric System,
Tax-Exempt Commercial Paper Notes, Series C-1,
TECP, 3.80% 10/18/95 3.80 2,800 2,800
City of Orlando, Waste Water System Refunding
Revenue Bonds, 1993 Series A, 3.80% 10/1/95 3.45 1,465 1,465
Pinellas County Educational Facilities Authority
Refunding Program Revenue Bonds, Series 1985
(Pooled Independent Higher Education Institutions
Loan Program) Adjustable Convertible Extendable
Securities, TECP, 3.65% 11/13/95 3.65 1,200 1,200
GEORGIA - 2.73%
State General Obligation Bond,
1993 Series F, 6.50% 12/1/95 3.76 2,500 2,512
Development Authority of Burke County,
Adjustable Tender Pollution Control Revenue
Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992A, TECP, 3.70% 10/25/95 3.70 1,600 1,600
HAWAII - 3.92%
Department of Budget and Finance of the State of
Hawaii, Special Purpose Revenue Bonds (Kuakini
Medical Center Project), Floating Rate Monthly
Demand, Series 1984, VRDN, 3.90% 10/2/95* 3.90 800 800
Housing Finance and Development Corporation,
Affordable Rental Housing Program Revenue
Bonds, 1993 Series A, VRDN, 4.45% 10/2/95* 4.45 1,000 1,000
City and County of Honolulu, General Obligation
Bond Anticipation Notes, TECP:
3.70% 10/4/95 3.70 2,600 2,600
3.55% 10/11/95 3.55 1,500 1,500
ILLINOIS - 6.22%
Health Facilities Authority Revenue Bonds
(Hospital Sisters Services Inc. Obligated
Group Project), Series 1985 E, MBIA Insured,
VRDN, 4.25% 10/4/95* 4.25 1,500 1,500
Health Facilities Authority Unit Priced Demand
Adjustable Revenue Bonds, Alexian Brothers
Health System, Inc. (Alexian Brothers Medical
Center Inc. Project), Series 1985D, MBIA
Insured, TECP:
3.65% 10/6/95 3.65 4,250 4,250
3.55% 10/20/95 3.55 1,100 1,100
City of Chicago General Obligation Tender Notes
Series 1994A, 3.50% Mandatory Put 10/31/95 3.50 2,500 2,500
INDIANA - 3.75%
Jasper County, Variable Rate Demand Pollution
Control Refunding Revenue Bonds (Northern
Indiana Public Service Company Project),
Series 1988C, TECP:
3.75% 10/17/95 3.75 2,000 2,000
3.85% 10/20/95 3.85 1,400 1,400
City of Sullivan, Floating/Fixed Rate Pollution
Control Revenue Bonds (Hoosier Energy Rural
Electric Cooperative, Inc. Project):
Series 1985-L5, TECP, 3.85% 10/23/95 3.85 1,235 1,235
Series 1985-L2, TECP, 3.60% 11/15/95 3.60 1,000 1,000
KANSAS - 2.99%
City of Burlington Pollution Control
Refunding and Improvement Revenue Bonds
(Kansas City Power & Light Company Project):
Series 1985, TECP, 3.60% 10/11/95 3.60 2,000 2,000
TECP, 3.50% 11/1/95 3.50 1,500 1,500
Series 1987B, TECP, 3.75% 11/14/95 3.75 1,000 1,000
KENTUCKY - 2.20%
Pendleton County Multi-County Lease
Revenue Bonds (Kentucky Association of
Counties Leasing Trust Program), Series
1989, Money Market Municipal,
3.60% 10/10/95 3.60 3,300 3,300
LOUISIANA - 2.99%
Jefferson Parish Hospital Service District #2
Hospital Revenue Bonds, Series 1985, FGIC
Insured, VRDN, 4.30% 10/2/95* 4.30 2,100 2,100
Lake Charles Harbor and Terminal District
Flexible Demand Port Facilities Revenue
Bonds (CITGO Petroleum Corp. Project),
Series 1984, VRDN, 4.20% 10/2/95* 4.20 1,400 1,400
Public Facilities Authority Hospital
Revenue and Refunding Bonds (Willis-
Knighton Medical Center Project), Series
1993, VRDN, 4.40% 10/4/95* 4.40 1,000 1,000
MARYLAND - 3.08%
Anne Arundel County Economic Development
Revenue Bonds (Baltimore Gas and Electric
Company Project), Series 1988, TECP:
3.75% 10/3/95 3.75 1,400 1,400
3.95% 10/23/95 3.95 2,240 2,240
Howard County, Adjustable Line Exempt
Securities Consolidated Public Improvement
Bond Anticipation Notes, Series A, TECP,
3.65% 11/14/95 3.65 1,000 1,000
MINNESOTA - 2.55%
Housing Finance Agency Single-Family
Mortgage Bonds, 1993 Series F, 5.25%
Mandatory Put 1/16/96 5.25 840 840
Regents of the University of Minnesota,
Variable Rate Demand Bonds:
Series 1985G, 3.60% Optional Put 2/1/96 3.60 2,000 2,000
Series 1985E, TECP, 4.40% 10/2/95 4.40 1,000 1,000
MISSOURI - 3.72%
State Environmental Improvement and Energy
Resources Authority of the State of Missouri
Unit Priced Demand Adjustable Pollution
Control Revenue Bonds (Union Electric Company
Project) Series 1985A, TECP:
3.65% 10/25/95 3.65 1,000 1,000
3.70% 11/8/95 3.70 1,000 1,000
Higher Education Loan Authority Adjustable
Rate Demand Student Loan Revenue Bonds, VRDN:
Series 1990 B, 4.50% 10/2/95* 4.50 1,000 1,000
Series 1990 A, 4.50% 10/2/95* 4.50 1,600 1,600
City of Columbia, Special Obligation
Insurance Reserve Bonds, Series 1988 A,
VRDN, 4.40% 10/4/95* 4.40 1,000 1,000
MONTANA - 1.38%
State Board of Housing, Single-Family
Mortgage Bonds, 1987 Series B-2,
4.60% Optional Put 10/1/95 4.60 1,070 1,070
City of Forsyth, Flexible Demand Pollution
Control Revenue Bonds (Portland General
Electric Company Colstrip Project),
Series 1983 A, VRDN, 4.25% 10/2/95* 4.25 1,000 1,000
NEVADA - 0.86%
Washoe County Water Facilities Revenue Bonds
(Sierra Pacific Power Company Project),
Series 1990, TECP, 3.60% 11/3/95 3.60 1,300 1,300
NEW MEXICO - 1.26%
Educational Assistance Foundation Student
Loan Revenue Bonds, Series 1992-B, VRDN,
4.50% 10/4/95* 4.50 1,900 1,900
NORTH CAROLINA - 1.66%
Educational Facilities Finance Agency Revenue
Bonds (Duke University Project), VRDN:
Series 1991 D, 4.35% 11/30/95* 4.35 1,500 1,500
Series 1992 A, 4.35% 11/30/95* 4.35 1,000 1,000
PENNSYLVANIA - 3.26%
Delaware County Industrial Development Authority
Pollution Control Revenue Refunding Bonds
(Philadelphia Electric Company Project):
1988 Series B, TECP, 3.70% 10/20/95 3.70 1,100 1,100
Series 1988, TECP, 3.70% 10/26/95 3.70 1,500 1,500
Delaware County Industrial Development Authority
Solid Waste Revenue Bonds (Scott Paper Company
Project), Series 1984 D, VRDN, 4.40% 10/2/95* 4.40 1,000 1,000
Venango Industrial Development Authority
Resource Recovery Revenue Bonds (Scrubgrass
Project), 1990 Series A, TECP, 3.75% 10/16/95 3.75 1,300 1,300
TENNESSEE - 3.99%
State General Obligation Bond Anticipation
Notes, Series 1994A, VRDN, 4.25% 10/2/95* 4.25 2,000 2,000
Health and Educational Facilities Board of the
Metropolitan Government of Nashville and
Davidson County, Hospital Revenue Bonds,
(Baptist Hospital, Inc.), TECP, Series 1992,
3.65% 10/13/95 3.65 4,000 4,000
TEXAS - 7.18%
City of Austin (Travis and Williamson Counties),
Combined Utility Systems Notes, Series A, TECP:
3.75% 10/16/95 3.75 1,200 1,200
3.80% 10/19/95 3.80 1,400 1,400
3.55% 11/9/95 3.55 1,200 1,200
Brazos Higher Education Authority, Inc. Student
Loan Revenue Bonds, Series 1993B-1, VRDN,
4.45% 12/5/95* 4.45 1,000 1,000
Harris County Health Facilities Development
Corporation SCH Health Care System Unit Priced
Demand Adjustable Revenue Bonds (Sisters of
Charity of the Incarnate Word, Houston)
Series 1985, TECP:
3.55% 10/23/95 3.55 1,000 1,000
3.70% 10/26/95 3.70 1,900 1,900
Lower Neches Valley Authority Pollution Control
Revenue Bonds (Chevron U.S.A. Inc. Project),
Series 1987, 3.75% Optional Put 2/15/96 3.75 1,000 999
Municipal Power Agency Bond Anticipation Notes,
TECP, 3.85% 10/24/95 3.85 1,000 1,000
Program of Board of Regents of the Texas A&M
University System Permanent University Fund
Subordinate Lien Notes, Series B, TECP,
3.70% 10/30/95 3.70 1,100 1,100
UTAH - 4.32%
State Board of Regents of the State of
Utah, Student Loan Revenue Bonds, 1988
Series C, VRDN, 4.50% 10/2/95* 4.50 1,100 1,100
Intermountain Power Agency, Variable Rate Power
Supply Revenue Bonds, 1985 Series F, 3.80%
Optional Put 6/15/96 3.80 3,000 2,999
Intermountain Power Agency, Variable Rate
Power Supply Revenue and Refunding Bonds,
1985 Series F2, TECP:
3.65% 10/4/95 3.65 1,000 1,000
3.75% 10/12/95 3.75 1,400 1,400
VIRGINIA - 10.10%
Housing Development Authority, Commonwealth
Mortgage Bonds, 1993 Series F, Subseries F-STEM:
3.70% Mandatory Put 10/12/95 3.70 2,500 2,500
3.55% Mandatory Put 11/16/95 3.55 2,500 2,500
Industrial Development Authority of the City
of Norfolk Hospital Revenue Bonds (Sentara
Hospitals-Norfolk Project), Series 1990A, TECP:
3.85% 10/20/95 3.85 1,200 1,200
3.85% 10/24/95 3.85 1,700 1,700
Industrial Development Authority of the Town of
Louisa Pollution Control Revenue Bonds (Virginia
Electric and Power Company), Series 1984,
Money Market Municipal:
3.85% 10/27/95 3.85 2,000 2,000
3.85% 10/30/95 3.85 1,600 1,600
Alexandria Industrial Development Authority
Resource Recovery, VRDN, 4.65% 10/2/95* 4.65 1,400 1,400
Industrial Development Authority of the County
of Chesterfield, Money Market Municipals
Pollution Control Revenue Bonds (Virginia
Electric and Power Company Project),
Series 1987B, TECP:
3.85% 10/17/95 3.85 1,000 1,000
3.85% 10/19/95 3.85 1,300 1,300
WASHINGTON - 1.60%
Student Loan Finance Association,
Guaranteed Student Loan Program, 1988
Series B, VRDN, 4.05% 12/31/95* 4.05 1,000 1,000
Port of Seattle General Obligation Bonds,
Series 1985, VRDN, 4.25% 10/2/95* 4.25 1,400 1,400
WEST VIRGINIA - 3.62%
The County Commission of Marion County Solid
Waste Disposal Facility Revenue Bonds, 1990
Series A (Grant Town Congeneration Project),
VRDN, 4.50% 10/4/95* 4.50 1,700 1,700
Public Energy Authority Energy Revenue Bonds
(Morgantown Energy Associates Project),
1989 Series A, TECP:
3.55% 10/5/95 3.55 1,750 1,750
3.80% 11/27/95 3.80 2,000 2,000
WISCONSIN - 0.80%
State Operating Notes of 1995, 4.50%
6/17/96 3.80 1,200 1,205
WYOMING - 1.33%
Lincoln County Pollution Control Revenue Bonds
(Exxon Project), VRDN, 4.65% 10/2/95* 4.65 1,400 1,400
Lincoln County Pollution Control Revenue
Refunding Bonds (PacifiCorp Projects),
Series 1991, TECP, 3.65% 11/17/95 3.65 1,000 1,000
Sweetwater County Pollution Control
Revenue Bonds (PacifiCorp Projects),
Series 1990A, VRDN, 4.35% 10/2/95* 4.35 2,000 2,000
---------- ---------
Total Tax-Exempt Securities (cost: $149,076,000) 149,000 149,069
Excess of cash, prepaid expenses, and receivables
over payables 1,353
---------
Net Assets $150,422
=========
*Coupon rates may change periodically; yield at
acquisition reflects current coupon rate.
</TABLE>
See Notes to Financial Statements
THE TAX-EXEMPT MONEY FUND OF AMERICA
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
- -------------------------------------- ------------ ------------
STATEMENT OF ASSETS AND LIABILITIES
AT SEPTEMBER 30, 1995 (DOLLARS IN THOUSANDS)
- ------------------------------------- ------------ ------------
ASSETS:
INVESTMENT SECURITIES AT MARKET
(COST: $149,076) $149,069
CASH 1,859
RECEIVABLES FOR--
SALES OF FUND'S SHARES $576
ACCRUED INTEREST 950 1,526
------------ ------------
152,454
LIABILITIES:
PAYABLES FOR--
PUCHASES OF INVESTMENTS 1,531
REPURCHASES OF FUND'S SHARES 421
DIVIDENDS PAYABLE 24
MANAGEMENT SERVICES 56 2,032
------------ ------------
NET ASSETS AT SEPTEMBER 30, 1995 --
EQUIVALENT TO $1.00 PER SHARE ON
150,434,168 SHARES OF BENEFICIAL
INTEREST ISSUED AND OUTSTANDING;
UNLIMITED SHARES AUTHORIZED $150,422
=============
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1995 (DOLLARS IN THOUSANDS)
------------ ------------
INVESTMENT INCOME:
INCOME:
INTEREST $ 5,946
EXPENSES:
MANAGEMENT SERVICES FEE $699
DISTRIBUTION EXPENSES 96
TRANSFER AGENT FEE 152
REPORTS TO SHAREHOLDERS 6
REGISTRATION STATEMENT AND PROSPECTUS 93
POSTAGE, STATIONERY AND SUPPLIES 55
TRUSTEES' FEES 16
AUDITING AND LEGAL FEES 37
CUSTODIAN FEE 8
TAXES OTHER THAN FEDERAL INCOME TAX 4
OTHER EXPENSES 27
------------------
TOTAL EXPENSES BEFORE REIMBURSEMENT 1,193
REIMBURSEMENT OF EXPENSES 161 1,032
------------ ------------
NET INVESTMENT INCOME 4,914
------------
REALIZED LOSS AND UNREALIZED
DEPRECIATION ON INVESTMENTS:
NET REALIZED LOSS (12)
NET UNREALIZED
DEPRECIATION ON INVESTMENTS:
BEGINNING OF YEAR (15)
END OF YEAR (7)
------------
NET CHANGE IN UNREALIZED
DEPRECIATION ON INVESTMENTS 8
------------
NET REALIZED LOSS AND UNREALIZED
DEPRECIATION ON INVESTMENTS (4)
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $4,910
============
STATEMENT OF CHANGES IN NET
ASSETS (DOLLARS IN THOUSANDS)
- ---------------------------------------- ------------- -------------
YEAR ENDED SEPTEMBER 30
1995 1994
OPERATIONS: ------------- -------------
NET INVESTMENT INCOME $ 4,914 $ 2,927
NET REALIZED (LOSS) GAIN (12) 10
NET INCREASE (DECREASE) IN UNREALIZED
APPRECIATION (DEPRECIATION) ON INVESTMENTS 8 (4)
------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 4,910 2,933
------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS (4,914) (2,927)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD:
254,916,915 AND 278,240,320
SHARES, RESPECTIVELY 254,917 278,240
PROCEEDS FROM SHARES ISSUED IN
REINVESTMENT OF NET INVESTMENT INCOME
DIVIDENDS AND DISTRIBUTIONS OF NET
REALIZED GAIN ON INVESTMENTS:
4,518,581 AND 2,735,835 SHARES,
RESPECTIVELY 4,519 2,736
COST OF SHARES REPURCHASED:
279,235,665 AND 231,575,866
SHARES, RESPECTIVELY (279,236) (231,576)
------------- -------------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS (19,800) 49,400
------------- -------------
TOTAL (DECREASE) INCREASE IN NET ASSETS (19,804) 49,406
NET ASSETS:
BEGINNING OF YEAR 170,226 120,820
------------- -------------
END OF YEAR $150,422 $170,226
============= ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
Notes to Financial Statements
1.The Tax-Exempt Money Fund of America (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
The fund uses the penny-rounding method of valuing its shares, in accordance
with Securities and Exchange Commission (SEC) rules. This method permits the
fund to maintain a constant net asset value of $1.00 per share, provided the
market value of the fund's shares does not deviate from $1.00 by more than
one-half of 1% and the fund complies with other restrictions set forth in the
SEC rules.
Municipal securities with 60 days or less to maturity are valued at amortized
cost, which approximates market value. Municipal securities with original or
remaining maturities in excess of 60 days are valued at prices obtained from a
national municipal bond pricing service. The pricing service takes into
account various factors such as quality, yield and maturity of municipal
securities comparable to those held by the fund, as well as actual bid and
asked prices on a particular day. Other securities with original or remaining
maturities in excess of 60 days, including securities for which pricing service
values are not available, are valued at the mean of their quoted bid and asked
prices. However, in circumstances where the investment adviser deems it
appropriate to do so, securities will be valued at the mean of their quoted bid
and asked prices, or, if such prices are not available, at the mean of such
prices for securities of comparable maturity, quality and type. The maturities
of variable or floating rate instruments are deemed to be the time remaining
until the next interest rate adjustment date. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by the Valuation Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Interest income is reported on the accrual basis. Dividends are
declared on a daily basis after the determination of the fund's net investment
income and paid to shareholders on a monthly basis. Discounts and premiums on
securities purchased are amortized over the life of the respective securities.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of September 30, 1995, unrealized depreciation for book and federal income
tax purposes aggregated $8,000, which related to depreciated securities. There
was no difference between book and tax realized gains on securities
transactions for the year ended September 30, 1995. During the year ended
September 30, 1995, the fund realized, on a tax basis, a net capital loss of
$11,000 on sales of securities. The cost of portfolio securities for book and
federal income tax purposes was $149,076,000 at September 30, 1995.
3. The fee of $699,000 for management services was paid 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 0.44% of the first $200 million of average net assets;
0.42% of such assets in excess of $200 million but not exceeding $600 million;
0.38% on that portion of net assets in excess of $600 million but not exceeding
$1.2 billion; and 0.34% on that portion of net assets in excess of $1.2
billion.
The Investment Advisory and Service Agreement provides for fee reductions to
the extent that annual operating expenses exceed 0.75% of the average net
assets of the fund during a period which will terminate at the earlier of such
time as no reimbursement has been required for a period of 12 consecutive
months, provided no advances are outstanding, or October 2, 1999. CRMC has
also voluntarily agreed to waive its fees to the extent necessary to ensure
that the Fund's expenses do not exceed 0.65% of the average net assets.
Expenses that are not subject to these limitations are interest, taxes,
brokerage commissions, transaction costs, and extraordinary expenses. There
can be no assurance that this voluntary fee waiver will continue in the future.
Fee reductions amounted to $161,000 for the year ended September 30, 1995.
Pursuant to a Plan of Distribution with American Funds Distributors, Inc.
(AFD), the fund may expend up to 0.15% of its average net assets annually for
any activities primarily intended to result in sales of fund shares, provided
the categories of expenses for which reimbursement is made are approved by the
fund's Board of Trustees. Fund expenses under the Plan include payments to
dealers to compensate them for their selling and servicing efforts. During the
year ended September 30, 1995, distribution expenses under the plan amounted to
$96,000. As of September 30, 1995, accrued and unpaid distribution expenses
were $7,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $152,000 under the terms of a contract that provides for transfer
agency services to be performed for the fund.
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,
1995, aggregate amounts deferred were $9,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are wholly
owned subsidiaries of CRMC. Certain of the 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. As of September 30, 1995, accumulated undistributed net realized loss on
investments was $12,000.
The fund made purchases and sales of investment securities of $761,180,000 and
$779,835,000, respectively, during the year ended September 30, 1995.
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEAR ENDED SEPTEMBER 30
-------- -------- -------- -------- --------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF YEAR $1.000 $1.000 $1.000 $1.000 $1.000
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
NET INVESTMENT INCOME .031 .020 .019 .029 .045
-------- -------- -------- -------- --------
TOTAL INCOME FROM INVESTMENT OPERATIONS .031 .020 .019 .029 .045
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
DIVIDENDS FROM NET INVESTMENT INCOME (.031) (.020) (.019) (.029) (.045)
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS (.031) (.020) (.019) (.029) (.045)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $1.000 $1.000 $1.000 $1.000 $1.000
======== ======== ======== ======== ========
TOTAL RETURN 3.14% 1.98% 1.90% 2.96% 4.58%
RATIOS/SUPPLEMENTAL DATA:
NET ASSETS, END OF YEAR (IN MILLIONS) $150 $170 $121 $108 $107
RATIO OF EXPENSES TO AVERAGE NET ASSETS* 0.65% .65% .65% .65% .65%
RATIO OF NET INCOME TO AVERAGE NET ASSETS 3.09% 1.99% 1.88% 2.95% 4.43%
</TABLE>
*HAD CRMC NOT WAIVED FEES, THE FUND'S RATIO
OF EXPENSES TO AVERAGE NET ASSETS WOULD HAVE
BEEN .75%, .73%, .79%, .77% AND .74% FOR THE
YEARS ENDED SEPTEMBER 30, 1995, 1994, 1993,
1992, AND 1991, REPECTIVELY.
Report of Independent Accountants
To the Board of Trustees and Shareholders of The Tax-Exempt Money Fund of
America
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Tax-Exempt Money Fund of
America (the "Fund") at September 30, 1995, the results of its operations, the
changes in its net assets and the per-share data and ratios for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards, which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP
Los Angeles, California
October 27, 1995
1995 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 received by shareholders
during such fiscal year.
Dividends received by retirement plans such as IRAs, Keogh-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.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. All of the dividends paid from net
investment income qualify as exempt-interest dividends.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FISCAL YEAR AND NOT THE CALENDAR
YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099 DIV OR OTHER TAX INFORMATION
WHICH WILL BE MAILED IN JANUARY 1996 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO
BE INCLUDED ON THEIR RESPECTIVE 1995 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
PART C
THE TAX-EXEMPT MONEY FUND OF AMERICA
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(A) FINANCIAL STATEMENTS:
Included in Prospectus - Part A
Financial Highlights
Included in Statement of Additional Information - Part B
Investment Portfolio Notes to Financial Statements
Statement of Assets and Liabilities Per-Share Data and Ratios
Statement of Operations Independent Auditors Report
Statement of Changes in Net Assets
(B) EXHIBITS:
1. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
2. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
3. None.
4. None.
5. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
6. Form of Shareholder Service Agreement between Registrant and American
Funds Service Company, as amended 1/1/95
7. None.
8. On file (see SEC file No. 33-26431, Pre-Effec Amndmnt No. 2 to Form N-1A
filed 10/10/89)
9. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
10. Not applicable to this filing
11. Consent of Independent Accountants
12. None.
13. On file (see SEC file No. 33-26431, Pre-Effec Amndmnt No. 2 to Form N-1A
filed 10/10/89)
14. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
15. On file (see SEC file No. 33-26431, Initial Form N-1A filed 1/9/89)
16. Updates to previously filed schedule for computation of each performance
quotation provided in the Registration Statement in response to Item 22 (see
SEC file No. 33-26431, Post-Effec Amndmnt No. 8 to Form N-1A filed 11/27/92)
17. Financial data schedule (EDGAR)
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of September 30, 1995
<TABLE>
<CAPTION>
Number of
Title of Class Record Holders
<S> <C>
Shares of beneficial 5,184
interest (no par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under an Investment Advisor/Mutual Fund
Errors and Omissions Policy 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.
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).
(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 or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is 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 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
None.
ITEM 29. PRINCIPAL UNDERWRITERS.
(a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., 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., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of America,
Inc., The Tax-Exempt Money Fund of America, The U.S. Treasury Money Fund of
America and Washington Mutual Investors Fund, Inc.
<TABLE>
<CAPTION>
ITEM 29. PRINCIPAL UNDERWRITERS. (cont.)
(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 Assistant Vice President None
John A. Agar Regional Vice President None
1501 N. University, Suite 225
Little Rock AR 72207
Robert B. Aprison Regional Vice President None
2983 Bryn Wood Drive
Madison, WI 53711
& Richard Armstrong Assistant Vice President None
* William W. Bagnard Vice President None
Steven L. Barnes Vice President None
8000 Town Line Avenue South
Suite 204
Minneapolis, MN 55438
Michelle A. Bergeron Regional Vice President None
1190 Rockmart Circle
Kennesaw, GA 30144
Joseph T. Blair Vice President None
27 Drumlin Road
West Simsbury, CT 06092
Ian B. Bodell Regional Vice President None
3100 West End Avenue, Suite 870
Nashville, TN 37215
Michael L. Brethower Vice President None
108 Hagen Court
Georgetown, TX 78628
C. Alan Brown Regional Vice President None
4619 McPherson Avenue
St. Louis, MO 63108
* Daniel C. Brown Director, Sr. Vice President None
@ J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
9508 Cable Drive
Kensington, MO 20895
Victor C. Cassato Vice President None
999 Green Oaks Drive
Littleton, CO 80121
Christopher J. Cassin Regional Vice President None
231 Burlington
Clarendon Hills, IL 60514
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA 94109
* Larry P. Clemmensen Director, Treasurer None
* Kevin G. Clifford Senior Vice President None
Ruth M. Collier Vice President None
145 West 67th St. Ste. 12K
New York, NY 10023
Thomas E. Cournoyer Vice President None
2333 Granada Boulevard
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
3521 Rittenhouse Street, N.W.
Washington, DC 20007
* Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P. O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
3622 E. 87th Street
Tulsa, OK 74137
Kirk D. Dodge Vice President None
2617 Salisbury Road
Ann Arbor, MI 48103
Peter J. Doran Sr. Vice President None
1205 Franklin Avenue
Garden City, NY 11530
* Michael J. Downer Secretary Vice President
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
+ Lloyd G. Edwards Vice President None
@ Richard A. Eychner Vice President None
* Paul H. Fieberg Sr. Vice President None
John Fodor Regional Vice President None
15 Latisquama Road
Southborough, MA 01772
* Mark P. Freeman, Jr. Director, President None
Clyde E. Gardner Vice President None
Route 2, Box 3162
Osage Beach, MO 65065
# Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Regional Vice President None
5898 Heather Glen Court
Dublin, OH 43017
* Paul G. Haaga, Jr. Director Chairman of the Board
David E. Harper Vice President None
R.D., 1 Box 210, Rte 519
Frenchtown, NJ 08825
Ronald R. Hulsey Regional Vice President None
6744 Avalon
Dallas, TX 75214
* Robert L. Johansen Vice President, Controller None
Michael J. Johnston Chairman of the Board None
630 Fifth Avenue, 36th Floor
New York, NY 10111-0121
* V. John Kriss Sr. Vice President None
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
12585-E East Tennessee Circle
Aurora, CO 80012
Steve A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Vice President None
5241 South Race Street
Littleton, CO 90121
* John C. Massar Vice President None
* E. Lee McClennahan Vice President None
Laurie B. McCurdy Regional Vice President None
6008 E. Anderson Drive
Scottsdale, AZ 85255
& John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
* R. William Melinat Vice President - Institutional None
Investment Services Division
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Court
Charlotte, NC 28226
* Barbara G. Nicholich Assistant Vice President - None
Institutional Investment Services Division
William E. Noe Regional Vice President None
12535 Barkley
Overland Park, KS 66209
Peter A. Nyhus Regional Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Fredric Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 02159
# Candance D. Pilgrim Assistant Vice President None
Carl S. Platou Regional Vice President None
4021 96th Avenue, S.E.
Mercer Island, WA 98040
* John O. Post Vice President None
Steven J. Reitman Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Regional Vice President None
12025 Delmahoy Drive
Charlotte, NC 28277
* George L. Romine Vice President - Institutional None
Investment Services Division
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07962
* Julie D. Roth Vice President None
Douglas F. Rowe Regional Vice President None
30309 Oak Tree Road
Georgetown, TX 78628
* Christopher Rowey Regional Vice President None
Dean B. Rydquist Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30202
Richard R. Samson Vice President None
4604 Glencoe Avenue, No. 4
Marina del Rey, CA 90292
Joseph D. Scarpitti Regional Vice President None
25760 Kensington Drive
Westlake, OH 44145
David W. Short Vice President None
1000 RIDC Plaza, Suite 212
Pittsburgh, PA 15238
* Victor S. Sidhu Vice President - Institutional None
Investment Services Division
William P. Simon, Jr. Vice President None
554 Canterbury Lane
Berwyn, PA 19312
* John C. Smith Assistant Vice President - Institutional None
Investment Services Division
* Mary E. Smith Assistant Vice President - Institutional None
Investment Services Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
Daniel S. Spradling Senior Vice President None
#4 West Fourth Avenue, Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
17040 Summer Place
Lake Oswego, OR 97035
Francis N. Strazzeri
31641 Saddletree Drive
Westlake Village, CA 91361
& James P. Toomey Assistant Vice President None
+ Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M. Ward Assistant Vice President -Institutional None
Investment Services Division
Thomas E. Warren Regional Vice President None
4001 Crockers Lake Blvd., #1012
Sarasota, FL 34242
# J. Kelly Webb Sr. Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
Canonsburg, PA 15317
# Timothy W. Weiss Director None
** N. Dexter Williams Vice President None
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
@ Marshall D. Wingo Sr. Vice President None
# Robert L. Winston Director, Sr. Vice President None
William R. Yost Regional Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Janet M. Young Regional Vice President None
1616 Vermont
Houston, TX 77006
</TABLE>
* Business Address, 333 South Hope Street, Los Angeles, CA 90071
** Business Address, Four Embarcadero, Suite 1800, San Francisco, CA 94111
# Business Address, 135 South State College Boulevard, Brea, CA 92621
& Business Address, 8000 IH-10 West, Suite 1400, San Antonio, TX 78230
@ Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
% Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
(c) None.
ITEM 30. 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 kept in the
offices of the Trust and its investment adviser, Capital Research and
Management Company, 333 South Hope Street, Los Angeles, CA 90071. Certain
accounting records are maintained and kept in the offices of the Fund's
accounting department, 135 South State College Blvd., Brea, CA 92621.
Records covering shareholder accounts are maintained and kept by the transfer
agent, American Funds Service Company, 135 South State College Blvd., Brea, CA
92621 and 8000 IH-10 West, Suite 1400, San Antonio, TX 78230, 5300 Robin Hood
Road, Norfolk, VA 23514 and 8332 Woodfield Crossing Blvd., Indianapolis, IN
46240.
Records covering portfolio transactions are also maintained and kept by the
custodian, The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New York,
New York, 10081.
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
(c) As reflected in the prospectus, the fund undertakes to provide each person
to whom a prospectus is delivered with a copy of the fund's latest annual
report to shareholders, upon request and without charge.
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 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 20th
day of November, 1995.
THE TAX-EXEMPT MONEY FUND OF AMERICA
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 20, 1995, by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Principal Executive Officer:
/s/ Abner D. Goldstine President and Trustee
(Abner D. Goldstine)
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ Mary C. Cremin Vice President and Treasurer
(Mary C. Cremin)
(3) Trustees:
H. Frederick Christie* Trustee
Diane C. Creel*/1/ Trustee
Martin Fenton, Jr.* Trustee
Leonard R. Fuller*/1/ Trustee
/s/ Abner D. Goldstine President and Trustee
(Abner D. Goldstine)
/s/ Paul G. Haaga, Jr. Chairman of the Board
(Paul G. Haaga, Jr.)
Herbert Hoover III* Trustee
Richard G. Newman* Trustee
Peter C. Valli* Trustee
</TABLE>
/1/ Powers of Attorney attached hereto.
*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
C-14
POWER OF ATTORNEY
I, Diane C. Creel, the undersigned Trustee of The Tax-Exempt Money Fund of
America, a Massachusetts business trust, revoking all prior powers of attorney
given as a Trustee of The Tax-Exempt Money Fund of America do hereby constitute
and appoint Mary C. Cremin, Michael J. Downer, Paul G. Haaga, Jr., Kimberly S.
Verdick, and Julie F. Williams, or any of them, to act as attorneys-in-fact for
and in my name, place and stead (1) to sign my name as Trustee of said Trust to
any and all Registration Statements of The Tax-Exempt Money Fund of America,
File No. 33-26431, under the Securities Act of 1933 as amended and/or the
Investment Company Act of 1940, as amended, and any and all amendments thereto,
said Registration Statements and amendments to be filed with the Securities and
Exchange Commission, and to any and all reports, applications or renewal of
applications required by any State in the United States of America in which
this Trust is registered to sell shares, and (2) to deliver any and all such
Registration Statements and amendments, so signed, for filing with the
Securities and Exchange Commission under the provisions of the Securities Act
of 1933 as amended and/or the Investment Company Act of 1940, as amended,
granting to said attorneys-in-fact, and each of them, full power and authority
to do and perform every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as the
undersigned might or could do if personally present, hereby ratifying and
approving the acts of said attorneys-in-fact.
EXECUTED at Los Angeles, California, this 19th day of September, 1995.
/s/ Diane C. Creel
Diane C. Creel, Trustee
POWER OF ATTORNEY
I, Leonard R. Fuller, the undersigned Trustee of The Tax-Exempt Money Fund of
America, a Massachusetts business trust, revoking all prior powers of attorney
given as a Trustee of The Tax-Exempt Money Fund of America do hereby constitute
and appoint Mary C. Cremin, Michael J. Downer, Paul G. Haaga, Jr., Kimberly S.
Verdick, and Julie F. Williams, or any of them, to act as attorneys-in-fact for
and in my name, place and stead (1) to sign my name as Trustee of said Trust to
any and all Registration Statements of The Tax-Exempt Money Fund of America,
File No. 33-26431, under the Securities Act of 1933 as amended and/or the
Investment Company Act of 1940, as amended, and any and all amendments thereto,
said Registration Statements and amendments to be filed with the Securities and
Exchange Commission, and to any and all reports, applications or renewal of
applications required by any State in the United States of America in which
this Trust is registered to sell shares, and (2) to deliver any and all such
Registration Statements and amendments, so signed, for filing with the
Securities and Exchange Commission under the provisions of the Securities Act
of 1933 as amended and/or the Investment Company Act of 1940, as amended,
granting to said attorneys-in-fact, and each of them, full power and authority
to do and perform every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as the
undersigned might or could do if personally present, hereby ratifying and
approving the acts of said attorneys-in-fact.
EXECUTED at Los Angeles, California, this 19th day of September, 1995.
/s/ Leonard R. Fuller
Leonard R. Fuller, Trustee
CONFORMED
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of January 1, 1995,
are THE TAX-EXEMPT MONEY FUND OF AMERICA, a Massachusetts business trust
(hereinafter called "the Fund"), and American Funds Service Company, a
California corporation (hereinafter called "AFS"). AFS is a wholly owned
subsidiary of Capital Research and Management Company (hereinafter called
"CRMC"). This Agreement will continue in effect until amended or terminated in
accordance with its terms.
2. The Fund hereby employs AFS, and AFS hereby accepts such employment by the
Fund, as its transfer agent. In such capacity AFS will provide the services of
stock transfer agent, dividend disbursing agent, redemption agent, and such
additional related services as the Fund may from time to time require, all of
which services are sometimes referred to herein as "shareholder services."
3. AFS has entered into substantially identical agreements with other
investment companies for which CRMC serves as investment adviser. (For the
purposes of this Agreement, such investment companies, including the Fund, are
called "participating investment companies.")
4. AFS has entered into an agreement with DST Systems, Inc. (hereinafter
called "DST"), to provide AFS with electronic data processing services
sufficient for the performance of the shareholder services referred to in
paragraph 2.
5. The Fund, together with the other participating companies, will maintain a
Review and Advisory Committee, which Committee will review and may make
recommendations to the boards of the participating investment companies
regarding all fees and charges provided for in this Agreement, as well as
review the level and quality of the shareholder services rendered to the
participating investment companies and their shareholders. Each participating
investment company may select one director or trustee who is not affiliated
with CRMC, or any of its affiliated companies, or with Washington Management
Corporation or any of its affiliated companies, to serve on the Review and
Advisory Committee.
6. AFS will provide to the participating investment companies the shareholder
services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$.67 per month for each open account on AFS books or in Level 2 or 4
Networking ($8.04 per year)
$.09 per month for each open account maintained in Street Name or Level 1 or
3 Networking ($1.08 per year)
No annual fee will be charged for a participant account underlying a 401(k)
or other defined contribution plan where the plan maintains a single account on
AFS books and responds to all participant inquiries
TRANSACTION FEES:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will bill the Fund monthly, on or shortly
after the first of each calendar month, and the Fund will pay to AFS within
five business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of
directors/trustees of the Fund.
7. All fund-specific charges from third parties -- including DST charges,
payments described in the next sentence, postage, NSCC transaction charges and
similar out-of-pocket expenses -- will be passed through directly to the Fund
or other participating investment companies, as applicable. AFS, subject to
approval of its board of directors, is authorized in its discretion to
negotiate payments to third parties for account maintenance and/or transaction
processing services provided such payments do not exceed the anticipated
savings to the Fund, either in fees payable to AFS hereunder or in other direct
Fund expenses, that AFS reasonably anticipates would be realized by the Fund
from using the services of such third party rather than maintaining the
accounts directly on AFS' books and/or processing non-automated transactions.
8. It is understood that AFS may have income in excess of its expenses and may
accumulate capital and surplus. AFS is not, however, permitted to distribute
any net income or accumulated surplus to its parent, CRMC, in the form of a
dividend without the affirmative vote of a majority of the members of the
boards of directors/trustees of the Fund and all participating investment
companies.
9. This Agreement may be amended at any time by mutual agreement of the
parties, with agreement of the Fund to be evidenced by affirmative vote of a
majority of the members of the board of directors/trustees of the Fund.
10. This Agreement may be terminated on 180 days' written notice by either
party. In the event of a termination of this Agreement, AFS and the Fund will
each extend full cooperation in effecting a conversion to whatever successor
shareholder service provider(s) the Fund may select, it being understood that
all records relating to the Fund and its shareholders are property of the Fund.
11. In the event of a termination of this Agreement by the Fund, the Fund will
pay to AFS as a termination fee the Fund's proportionate share of any costs of
conversion of the Fund's shareholder service from AFS to a successor. In the
event of termination of this Agreement and all corresponding agreements with
all the participating investment companies, all assets of AFS will be sold or
otherwise converted to cash, with a view to the liquidation of AFS when it
ceases to provide shareholder services for the participating investment
companies. To the extent any such assets are sold by AFS to CRMC and/or any of
its affiliates, such sales shall be at fair market value at the time of sale as
agreed upon by AFS, the purchasing company or companies, and the Review and
Advisory Committee. After all assets of AFS have been converted to cash and
all liabilities of AFS have been paid or discharged, an amount equal to any
capital or paid-in surplus of AFS that shall have been contributed by CRMC or
its affiliates shall be set aside in cash for distribution to CRMC upon
liquidation of AFS. Any other capital or surplus and any assets of AFS
remaining after the foregoing provisions for liabilities and return of capital
or paid-in surplus to CRMC shall be distributed to the participating investment
companies in such proportions as may be determined by the Review and Advisory
Committee.
12. In the event of disagreement between the Fund and AFS, or between the Fund
and other participating investment companies as to any matter arising under
this Agreement, which the parties to the disagreement are unable to resolve,
the question shall be referred to the Review and Advisory Committee for
resolution. If the Review and Advisory Committee is unable to resolve the
question to the satisfaction of both parties, either party may elect to submit
the question to arbitration; one arbitrator to be named by each party to the
disagreement and a third arbitrator to be selected by the two arbitrators named
by the original parties. The decision of a majority of the arbitrators shall
be final and binding on all parties to the arbitration. The expenses of such
arbitration shall be paid by the party electing to submit the question to
arbitration.
13. The obligations of the Fund under this Agreement are not binding upon any
of the directors, trustees, officers, employees, agents or shareholders of the
Fund individually, but bind only the Fund itself. AFS agrees to look solely to
the assets of the Fund for the satisfaction of any liability of the Fund in
respect to this Agreement and will not seek recourse against such directors,
trustees, officers, employees, agents or shareholders, or any of them or their
personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY THE TAX-EXEMPT MONEY FUND OF AMERICA
By /s/ Don R. Conlan By /s/ Paul G. Haaga, Jr.
Don R. Conlan, Chairman Paul G. Haaga, Jr., Chairman
By /s/ Kenneth R. Gorvetzian By /s/ Julie F. Williams
Kenneth R. Gorvetzian, Secretary Julie F. Williams, Secretary
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 12 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
October 27, 1995, relating to the financial statements and per share data and
ratios of The Tax-Exempt Money Fund of America, which appears in such Statement
of Additional Information, and to the incorporation by reference of our report
into the Prospectus which constitutes part of this Registration Statement. We
also consent to the references to us under the heading "General Information" in
the Statement of Additional Information and under the heading "Financial
Highlights" in the Prospectus.
PRICE WATERHOUSE LLP
Los Angeles, California
November 27, 1995
THE TAX-EXEMPT MONEY FUND OF AMERICA
SCHEDULE FOR COMPUTATION OF EACH PERFORMANCE QUOTATION
PROVIDED IN THE REGISTRATION STATEMENT
(1) ENDING REDEMPTION VALUE AND TOTAL RETURN
Value of an initial investment at the end of a period and total return for the
period are computed as set forth below.
(A) Initial investment DIVIDED BY
Public offering price for one share at
beginning of period EQUALS
Number of shares initially purchased
(B) Number of shares initially purchased PLUS
Number of shares acquired at net asset
value through reinvestment of dividends
and capital gain distributions during period EQUALS
Number of shares purchased during period
(C) Number of shares purchased during period MULTIPLIED BY
Net asset value of one share as of the last day
of the period EQUALS
Value of investment at end of period
(D) Value of investment at end of period DIVIDED BY
Initial investment
minus one and then multiplied by 100 EQUALS
Total return for the period expressed as a
percentage
(2) SEVEN DAY YIELD AND EFFECTIVE YIELD
See the Statement of Additional Information under "Investment Results."
EXHIBIT 16
<PAGE>
<TABLE>
<CAPTION>
CASH MANAGEMENT TRUST OF AMERICA
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
11/03/76 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/77 10000 447 447 10447 0 10000 0 10000 446 10446.81 10446.81
09/30/78 10000 636 1083 11083 0 10000 0 10000 1082 11082.86 11082.86
09/30/79 10000 1097 2180 12180 0 10000 0 10000 2179 12179.44 12179.44
09/30/80 10000 1548 3728 13728 0 10000 0 10000 3727 13727.24 13727.24
09/30/81 10000 2347 6075 16075 0 10000 0 10000 6074 16074.41 16074.41
09/30/82 10000 2246 8321 18321 0 10000 0 10000 8319 18319.99 18319.99
09/30/83 10000 1645 9966 19966 0 10000 0 10000 9964 19964.78 19964.78
09/30/84 10000 2057 12023 22023 0 10000 0 10000 12021 22021.7 22021.7
09/30/85 10000 1877 13900 23900 0 10000 0 10000 13898 23898.55 23898.55
09/30/86 10000 1686 15586 25586 0 10000 0 10000 15584 25584.54 25584.54
09/30/87 10000 1554 17140 27140 0 10000 0 10000 17138 27138.51 27138.51
09/30/88 10000 1900 19040 29040 0 10000 0 10000 19038 29038.69 29038.69
09/30/89 10000 2609 21649 31649 0 10000 0 10000 21647 31647.59 31647.59
09/30/90 10000 2563 24212 34212 0 10000 0 10000 24210 34210.31 34210.31
09/30/91 10000 2143 26355 36355 0 10000 0 10000 26353 36353.09 36353.09
09/30/92 10000 1323 27678 37678 0 10000 0 10000 27675 37675.92 37675.92
09/30/93 10000 969 28647 38647 0 10000 0 10000 28645 38645 38645
09/30/94 10000 1199 29846 39846 0 10000 0 10000 29843 39843.96 39843.96
09/30/95 10000 2128 31974 41974 0 10000 0 10000 31972 41972.15 41972.15
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE TAX-EXEMPT MONEY FUND OF AMERICA
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/24/89 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/90 10000 504 504 10504 0 10000 0 10000 503 10503.79 10503.79
09/30/91 10000 481 985 10985 0 10000 0 10000 985 10985.28 10985.28
09/30/92 10000 325 1310 11310 0 10000 0 10000 1310 11310.17 11310.17
09/30/93 10000 215 1525 11525 0 10000 0 10000 1525 11525.27 11525.27
09/30/94 10000 228 1753 11753 0 10000 0 10000 1753 11753.52 11753.52
09/30/95 10000 369 2122 12122 0 10000 0 10000 2122 12122.77 12122.77
$0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE U.S. TREASURY MONEY FUND OF AMERI
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
02/01/91 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 352 352 10352 0 10000 0 10000 352 10352.3 10352.3
09/30/92 10000 374 726 10726 0 10000 0 10000 726 10726.39 10726.39
09/30/93 10000 267 993 10993 0 10000 0 10000 993 10993.81 10993.81
09/30/94 10000 317 1310 11310 0 10000 0 10000 1311 11311.05 11311.05
09/30/95 10000 554 1864 11864 0 10000 0 10000 1864 11864.69 11864.69
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CASH MANAGEMENT TRUST OF AMERICA
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/90 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 626 626 10626 0 10000 0 10000 626 10626.35 10626.35
09/30/92 10000 387 1013 11013 0 10000 0 10000 1013 11013.02 11013.02
09/30/93 10000 283 1296 11296 0 10000 0 10000 1296 11296.28 11296.28
09/30/94 10000 350 1646 11646 0 10000 0 10000 1646 11646.75 11646.75
09/30/95 10000 622 2268 12268 0 10000 0 10000 2268 12268.84 12268.84
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGMONEY-MARKET FUND
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/90 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 625 625 10625 0 10000 0 10000 626 10626.5 10626.5
09/30/92 10000 407 1032 11032 0 10000 0 10000 1034 11034.21 11034.21
09/30/93 10000 296 1328 11328 0 10000 0 10000 1330 11330.93 11330.93
09/30/94 10000 362 1690 11690 0 10000 0 10000 1692 11692.33 11692.33
09/30/95 10000 615 2305 12305 0 10000 0 10000 2307 12307.1 12307.1
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/90 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 637 637 10637 0 10000 0 10000 637 10637.42 1063.742
09/30/92 10000 492 1129 11129 0 10000 0 10000 1129 11129.1 1112.91
09/30/93 10000 380 1509 11509 0 10000 0 10000 1509 11509.18 1150.918
09/30/94 10000 365 1874 11874 0 10000 0 10000 1874 11874.85 1187.485
09/30/95 10000 373 2247 12247 0 10000 0 10000 2248 12248.49 1224.849
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CASH MANAGEMENT TRUST OF AMERICA
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/85 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 705 705 10705 0 10000 0 10000 705 10705.48 10705.48
09/30/87 10000 650 1355 11355 0 10000 0 10000 1355 11355.69 11355.69
09/30/88 10000 795 2150 12150 0 10000 0 10000 2150 12150.8 12150.8
09/30/89 10000 1092 3242 13242 0 10000 0 10000 3242 13242.45 13242.45
09/30/90 10000 1072 4314 14314 0 10000 0 10000 4314 14314.78 14314.78
09/30/91 10000 897 5211 15211 0 10000 0 10000 5211 15211.38 15211.38
09/30/92 10000 554 5765 15765 0 10000 0 10000 5764 15764.88 15764.88
09/30/93 10000 405 6170 16170 0 10000 0 10000 6170 16170.37 16170.37
09/30/94 10000 502 6672 16672 0 10000 0 10000 6672 16672.07 16672.07
09/30/95 10000 891 7563 17563 0 10000 0 10000 7562 17562.59 17562.59
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGMONEY-MARKET FUND
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/85 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 671 671 10671 0 10000 0 10000 670 10670.63 10670.63
09/30/87 10000 603 1274 11274 0 10000 0 10000 1272 11272.6 11272.6
09/30/88 10000 743 2017 12017 0 10000 0 10000 2015 12015.63 12015.63
09/30/89 10000 1032 3049 13049 0 10000 0 10000 3047 13047.55 13047.55
09/30/90 10000 1019 4068 14068 0 10000 0 10000 4068 14068.17 14068.17
09/30/91 10000 880 4948 14948 0 10000 0 10000 4949 14949.54 14949.54
09/30/92 10000 573 5521 15521 0 10000 0 10000 5523 15523.1 15523.1
09/30/93 10000 416 5937 15937 0 10000 0 10000 5940 15940.53 15940.53
09/30/94 10000 509 6446 16446 0 10000 0 10000 6448 16448.96 16448.96
09/30/95 10000 866 7312 17312 0 10000 0 10000 7313 17313.83 17313.83
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/85 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 722 722 10722 0 10000 0 10000 721 10721.72 1072.172
09/30/87 10000 683 1405 11405 0 10000 0 10000 1404 11404.04 1140.404
09/30/88 10000 736 2141 12141 0 10000 0 10000 2139 12139.94 1213.994
09/30/89 10000 881 3022 13022 0 10000 0 10000 3021 13021.55 1302.155
09/30/90 10000 946 3968 13968 0 10000 0 10000 3967 13967.56 1396.756
09/30/91 10000 889 4857 14857 0 10000 0 10000 4857 14857.87 1485.787
09/30/92 10000 687 5544 15544 0 10000 0 10000 5544 15544.63 1554.463
09/30/93 10000 530 6074 16074 0 10000 0 10000 6075 16075.51 1607.551
09/30/94 10000 510 6584 16584 0 10000 0 10000 6586 16586.25 1658.625
09/30/95 10000 523 7107 17107 0 10000 0 10000 7108 17108.13 1710.813
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/84 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/85 10000 846 846 10846 0 10000 0 10000 846 10846.84 1084.684
09/30/86 10000 783 1629 11629 0 10000 0 10000 1629 11629.67 1162.967
09/30/87 10000 740 2369 12369 0 10000 0 10000 2369 12369.76 1236.976
09/30/88 10000 799 3168 13168 0 10000 0 10000 3167 13167.98 1316.798
09/30/89 10000 956 4124 14124 0 10000 0 10000 4124 14124.25 1412.425
09/30/90 10000 1027 5151 15151 0 10000 0 10000 5150 15150.37 1515.037
09/30/91 10000 966 6117 16117 0 10000 0 10000 6116 16116.09 1611.609
09/30/92 10000 745 6862 16862 0 10000 0 10000 6861 16861 1686.1
09/30/93 10000 577 7439 17439 0 10000 0 10000 7436 17436.84 1743.684
09/30/94 10000 554 7993 17993 0 10000 0 10000 7990 17990.84 1799.084
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/83 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/84 10000 947 947 10947 0 10000 0 10000 946 10946.87 1094.687
09/30/85 10000 927 1874 11874 0 10000 0 10000 1873 11873.89 1187.389
09/30/86 10000 857 2731 12731 0 10000 0 10000 2730 12730.85 1273.085
09/30/87 10000 809 3540 13540 0 10000 0 10000 3541 13541.02 1354.102
09/30/88 10000 874 4414 14414 0 10000 0 10000 4414 14414.82 1441.482
09/30/89 10000 1046 5460 15460 0 10000 0 10000 5461 15461.64 1546.164
09/30/90 10000 1123 6583 16583 0 10000 0 10000 6584 16584.91 1658.491
09/30/91 10000 1057 7640 17640 0 10000 0 10000 7642 17642.07 1764.207
09/30/92 10000 815 8455 18455 0 10000 0 10000 8457 18457.52 1845.752
09/30/93 10000 631 9086 19086 0 10000 0 10000 9087 19087.88 1908.788
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/82 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/83 10000 960 960 10960 0 10000 0 10000 959 10959.66 1095.966
09/30/84 10000 1038 1998 11998 0 10000 0 10000 1997 11997.4 1199.74
09/30/85 10000 1016 3014 13014 0 10000 0 10000 3013 13013.39 1301.339
09/30/86 10000 940 3954 13954 0 10000 0 10000 3952 13952.59 1395.259
09/30/87 10000 887 4841 14841 0 10000 0 10000 4840 14840.51 1484.051
09/30/88 10000 958 5799 15799 0 10000 0 10000 5798 15798.17 1579.817
09/30/89 10000 1147 6946 16946 0 10000 0 10000 6945 16945.45 1694.545
09/30/90 10000 1231 8177 18177 0 10000 0 10000 8176 18176.52 1817.652
09/30/91 10000 1158 9335 19335 0 10000 0 10000 9335 19335.12 1933.512
09/30/92 10000 895 10230 20230 0 10000 0 10000 10228 20228.83 2022.883
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/81 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/82 10000 1089 1089 11089 0 10000 0 10000 1088 11088.83 1108.883
09/30/83 10000 1064 2153 12153 0 10000 0 10000 2152 12152.99 1215.299
09/30/84 10000 1151 3304 13304 0 10000 0 10000 3303 13303.74 1330.374
09/30/85 10000 1126 4430 14430 0 10000 0 10000 4430 14430.37 1443.037
09/30/86 10000 1041 5471 15471 0 10000 0 10000 5471 15471.83 1547.183
09/30/87 10000 985 6456 16456 0 10000 0 10000 6456 16456.44 1645.644
09/30/88 10000 1061 7517 17517 0 10000 0 10000 7518 17518.37 1751.837
09/30/89 10000 1273 8790 18790 0 10000 0 10000 8790 18790.58 1879.058
09/30/90 10000 1366 10156 20156 0 10000 0 10000 10155 20155.71 2015.571
09/30/91 10000 1285 11441 21441 0 10000 0 10000 11440 21440.47 2144.047
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
10/01/80 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/81 10000 1047 1047 11047 0 10000 0 10000 1046 11046.39 1104.639
09/30/82 10000 1204 2251 12251 0 10000 0 10000 2249 12249.15 1224.915
09/30/83 10000 1176 3427 13427 0 10000 0 10000 3424 13424.65 1342.465
09/30/84 10000 1271 4698 14698 0 10000 0 10000 4695 14695.8 1469.58
09/30/85 10000 1245 5943 15943 0 10000 0 10000 5940 15940.3 1594.03
09/30/86 10000 1151 7094 17094 0 10000 0 10000 7090 17090.75 1709.075
09/30/87 10000 1086 8180 18180 0 10000 0 10000 8178 18178.39 1817.839
09/30/88 10000 1172 9352 19352 0 10000 0 10000 9351 19351.43 1935.143
09/30/89 10000 1405 10757 20757 0 10000 0 10000 10756 20756.75 2075.675
09/30/90 10000 1508 12265 22265 0 10000 0 10000 12264 22264.71 2226.471
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVTAXFUND
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
11/01/89 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/90 10000 498 498 10498 0 10000 0 10000 498 10498.77 10498.77
09/30/91 10000 473 971 10971 0 10000 0 10000 972 10972.43 10972.43
09/30/92 10000 322 1293 11293 0 10000 0 10000 1294 11294.84 11294.84
09/30/93 10000 225 1518 11518 0 10000 0 10000 1521 11521.17 11521.17
09/30/94 10000 240 1758 11758 0 10000 0 10000 1761 11761.66 11761.66
09/30/95 10000 382 2140 12140 0 10000 0 10000 2142 12142.99 12142.99
TO $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
11/01/89 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/90 10000 726 726 10726 0 10000 0 10000 726 10726.49 1072.649
09/30/91 10000 684 1410 11410 0 10000 0 10000 1410 11410.21 1141.021
09/30/92 10000 527 1937 11937 0 10000 0 10000 1937 11937.61 1193.761
09/30/93 10000 407 2344 12344 0 10000 0 10000 2345 12345.31 1234.531
09/30/94 10000 392 2736 12736 0 10000 0 10000 2737 12737.54 1273.754
09/30/95 10000 400 3136 13136 0 10000 0 10000 3138 13138.32 1313.832
TO $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVGOVERNMENTMONEY MARKET FUND
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
02/01/91 10000 1 0 % 100 1 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 370 370 10370 0 10000 0 10000 370 10370.12 10370.12
09/30/92 10000 389 759 10759 0 10000 0 10000 759 10759.43 10759.43
09/30/93 10000 278 1037 11037 0 10000 0 10000 1036 11036.47 11036.47
09/30/94 10000 335 1372 11372 0 10000 0 10000 1372 11372.15 11372.15
09/30/95 10000 577 1949 11949 0 10000 0 10000 1948 11948.34 11948.34
TO $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLU PURCHASSHARE VALUE
02/01/91 10000 10 0 % 10 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==================VALUE OF SHARES============
CURRENCUM. CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GFROM CAP GAINDIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INVREINV'DTREINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 454 454 10454 0 10000 0 10000 454 10454.47 1045.447
09/30/92 10000 483 937 10937 0 10000 0 10000 937 10937.69 1093.769
09/30/93 10000 373 1310 11310 0 10000 0 10000 1311 11311.23 1131.123
09/30/94 10000 359 1669 11669 0 10000 0 10000 1670 11670.6 1167.06
09/30/95 10000 368 2037 12037 0 10000 0 10000 2037 12037.81 1203.781
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASINITIAL
INITIAL OFFERINCHARGSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUPURCHAPESHARE VALUE
10/01/79 10000 10 0 1000 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES=======================VALUE OF SHARES=======
CURREN CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP G FROMCASUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRINV'M' RTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/80 10000 854 854 10854 0 10000 0 10000 854 10854.02 1085.402
09/30/81 10000 1135 1989 11989 0 10000 0 10000 1989 11989.78 1198.978
09/30/82 10000 1306 3295 13295 0 10000 0 10000 3295 13295.26 1329.526
09/30/83 10000 1276 4571 14571 0 10000 0 10000 4571 14571.16 1457.116
09/30/84 10000 1379 5950 15950 0 10000 0 10000 5950 15950.87 1595.087
09/30/85 10000 1350 7300 17300 0 10000 0 10000 7301 17301.66 1730.166
09/30/86 10000 1249 8549 18549 0 10000 0 10000 8550 18550.35 1855.035
09/30/87 10000 1181 9730 19730 0 10000 0 10000 9730 19730.87 1973.087
09/30/88 10000 1273 11003 21003 0 10000 0 10000 11004 21004.1 2100.41
09/30/89 10000 1526 12529 22529 0 10000 0 10000 12529 22529.44 2252.944
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASINITIAL
INITIAL OFFERINCHARGSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUPURCHAPESHARE VALUE
10/01/78 10000 10 0 1000 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES=======================VALUE OF SHARES=======
CURREN CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP G FROMCASUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRINV'M' RTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/79 10000 718 718 10718 0 10000 0 10000 717 10717.51 1071.751
09/30/80 10000 915 1633 11633 0 10000 0 10000 1632 11632.81 1163.281
09/30/81 10000 1218 2851 12851 0 10000 0 10000 2850 12850.05 1285.005
09/30/82 10000 1398 4249 14249 0 10000 0 10000 4249 14249.2 1424.92
09/30/83 10000 1368 5617 15617 0 10000 0 10000 5616 15616.64 1561.664
09/30/84 10000 1479 7096 17096 0 10000 0 10000 7095 17095.34 1709.534
09/30/85 10000 1448 8544 18544 0 10000 0 10000 8543 18543.04 1854.304
09/30/86 10000 1338 9882 19882 0 10000 0 10000 9881 19881.32 1988.132
09/30/87 10000 1266 11148 21148 0 10000 0 10000 11146 21146.53 2114.653
09/30/88 10000 1364 12512 22512 0 10000 0 10000 12511 22511.11 2251.111
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASINITIAL
INITIAL OFFERINCHARGSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUPURCHAPESHARE VALUE
10/01/77 10000 10 0 1000 10 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES=======================VALUE OF SHARES=======
CURREN CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP G FROMCASUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRINV'M' RTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/78 10000 635 635 10635 0 10000 0 10000 634 10634.56 1063.456
09/30/79 10000 763 1398 11398 0 10000 0 10000 1397 11397.6 1139.76
09/30/80 10000 973 2371 12371 0 10000 0 10000 2370 12370.98 1237.098
09/30/81 10000 1294 3665 13665 0 10000 0 10000 3665 13665.46 1366.546
09/30/82 10000 1488 5153 15153 0 10000 0 10000 5153 15153.39 1515.339
09/30/83 10000 1455 6608 16608 0 10000 0 10000 6607 16607.61 1660.761
09/30/84 10000 1572 8180 18180 0 10000 0 10000 8180 18180.14 1818.014
09/30/85 10000 1540 9720 19720 0 10000 0 10000 9719 19719.72 1971.972
09/30/86 10000 1423 11143 21143 0 10000 0 10000 11142 21142.94 2114.294
09/30/87 10000 1347 12490 22490 0 10000 0 10000 12488 22488.45 2248.845
TOTAL $0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-1-1994
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 149,076
<INVESTMENTS-AT-VALUE> 149,069
<RECEIVABLES> 1,526
<ASSETS-OTHER> 1,859
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 152,454
<PAYABLE-FOR-SECURITIES> 1,531
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 501
<TOTAL-LIABILITIES> 2,032
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 150,434,168
<SHARES-COMMON-PRIOR> 170,234,337
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (7)
<NET-ASSETS> 150,422
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,946
<OTHER-INCOME> 0
<EXPENSES-NET> 1,032
<NET-INVESTMENT-INCOME> 4,914
<REALIZED-GAINS-CURRENT> (12)
<APPREC-INCREASE-CURRENT> 8
<NET-CHANGE-FROM-OPS> 4,910
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,914
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 254,916,915
<NUMBER-OF-SHARES-REDEEMED> 279,235,665
<SHARES-REINVESTED> 4,518,581
<NET-CHANGE-IN-ASSETS> (19,804)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 699
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,032
<AVERAGE-NET-ASSETS> 158,981
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .031
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .031
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .007
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
