THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
SEMI-ANNUAL REPORT
for the six months ended March 31, 1996
[The American Funds Group(r)]
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in high-quality money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA(SM) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality municipal securities maturing in one year or less.
FOR CURRENT YIELDS, PLEASE CALL AMERICAN FUNDSLINE(R) TOLL-FREE AT
800/325-3590; PRESS 1 FOR YIELD INFORMATION.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. THE RETURN ON AN INVESTMENT IN
THESE FUNDS WILL VARY. FUND SHARES 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.
There can be no assurance that the funds' net asset values will remain constant
at $1.00. Income from The Tax-Exempt Money Fund of America may be subject to
state or local income taxes and/or federal alternative minimum taxes. Certain
other income, as well as capital gain distributions, may be taxable. Results
for The Tax-Exempt Money Fund of America reflect the effect of a fee waiver.
Without the waiver, the results would have been lower.
FELLOW SHAREHOLDERS:
As most of the country experienced a memorably long and cold winter, continued
low inflation and efforts to stimulate sluggish economic growth resulted in
declining short-term interest rates during most of the recent fiscal period. As
a result, yields of our money market funds during the past six months dropped
below the average for the previous six months.
In December and again in January, the Federal Reserve Board attempted to
stimulate growth by cutting the federal funds rate (the rate at which banks
lend to each other) by 0.25% each time. This had a direct impact on money
market yields. Since that time, reports that job creation and economic activity
were growing faster than anticipated have dampened expectations that the Fed
will cut rates again soon. Intermediate and long-term rates have climbed
sharply. Short-term rates, however, which declined until early February, rose
only modestly in March, the last month of the fiscal half-year.
Here are the results for each of our money market funds over the six months
ended March 31.
THE CASH MANAGEMENT TRUST OF AMERICA provided shareholders who reinvested their
dividends with a six-month income return of 2.58%, or an annualized rate of
5.16%.
THE U.S. TREASURY MONEY FUND OF AMERICA'S six-month income return was 2.34%,
including reinvested dividends, or 4.68% at an annual rate. This income is
exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA produced a federally tax-free income
return over the six-month period of 1.47% for shareholders who reinvested
dividends, or 2.94% at an annualized rate. Investors in the maximum 39.6%
federal tax bracket would have to earn a taxable return of 2.43% (4.86%
annualized) to match the fund's federally tax-free income return. In the 36%
tax bracket, the taxable equivalent would be 2.30% (4.60% annualized). A
portion of the fund's income may also be exempt from tax in some states.
The chart at left shows the quarterly pattern of yields on our three money
market funds over the past four years. While money market fund yields move up
and down with open market short-term rates, they can be an excellent source of
investment stability. Although these funds carry no price guarantee, they are
managed to maintain a net asset value of $1.00 a share. In contrast to stock
and bond funds, which fluctuate daily, this stability makes money market funds
an important tool in financial planning (see box below).
It is important to note that throughout the last 12 months, a period of
relatively low yields, all three of our money market funds outpaced the 2.84%
annualized increase in the Consumer Price Index, which measures changes in the
cost of living. Helping you maintain purchasing power is one of our main goals.
As assets in our three funds continue to grow, we would like to thank you for
trusting us to select the highest quality money market securities available and
to monitor your investments in these funds carefully.
Cordially,
Paul G. Haaga, Jr.
Chairman of the Boards
Abner D. Goldstine
President
May 15, 1996
WHETHER YOU ARE INVESTING FOR A HOME, A VACATION, A COLLEGE EDUCATION OR A
SECURE RETIREMENT, MONEY MARKET FUNDS CAN BE AN IMPORTANT PART OF A DIVERSIFIED
INVESTMENT PORTFOLIO. Here are three key roles a money market fund can play:
- - A STARTING POINT FOR REGULAR INVESTMENTS. Your money market fund can be set
up to make regular purchases of other mutual funds, allowing you to
conveniently diversify your investment portfolio.
- - AN EMERGENCY CASH RESERVE. Money market funds let you earn income on cash
reserves and easily redeem your assets by mail, telephone, systematic
withdrawals, electronic bank deposits and free check-writing privileges.
- - A SOLID FOUNDATION FOR YOUR FINANCIAL PROGRAM. You may choose to hold a
percentage of your financial assets in a money market fund for the preservation
of capital and the steady income it can provide.
<TABLE>
<S> <C> <C> <C>
The Tax-Exempt Money Fund of America
Investment Portfolio, March 31, 1996
Unaudited Principal Market
Yield at Amount Value
Acquisition (000) (000)
Municipal Securities
- -------------------------------------------------------- ------------- ---------- ----------
Alabama - 1.89%
The Industrial Development Board of the City of
Montgomery, Pollution Control and Solid Waste
Disposal Revenue Refunding Bonds (General
Electric Co. Project), Series 1990, TECP,
3.10% 4/4/96 3.10% $2,000 $2,000
Special Care Facilities Financing Authority of
the City of Montgomery, Hospital Depreciable
Assets Revenue Bonds, Series 1985, FGIC
Insured, VRDN, 3.30% 4/3/96* 3.30 800 800
Alaska - 5.06%
Housing Finance Corporation General
Purpose Bonds, 1991 Series C, VRDN,
3.40% 4/3/96* 3.40 3,500 3,500
City of Valdez, Marine Terminal Revenue
Refunding Bonds (ARCO Transportation
Alaska, Inc. Project):
1994 Series A, TECP, 3.15% 5/6/96 3.15 2,000 2,000
1994 Series C, TECP, 3.40% 5/7/96 3.40 1,000 1,000
1994 Series C, TECP, 3.35% 5/16/96 3.35 1,000 1,000
Arizona - 4.89%
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, 3.50% 4/3/96* 3.50 1,000 1,000
Salt River Project Agricultural Improvement
and Power District, Promissory Notes, TECP:
Series L, 3.15% 4/2/96 3.15 1,000 1,000
Series L, 3.35% 5/1/96 3.35 2,500 2,500
Series G, 3.10% 5/3/96 3.10 1,400 1,400
3.15% 5/7/96 3.15 1,350 1,350
Arkansas - 1.35%
Board of Trustees of the University of Arkansas
Various Facility Revenue Bonds (UAMS
Campus), Series 1994, VRDN, 3.44% 4/3/96* 3.44 2,000 2,000
California - 6.32%
State 1994 Revenue Anticipation Warrants,
FGIC Insured, 5.75% 4/25/96 5.75 5,450 5,458
County of Los Angeles, 1994-95 Tax and
Revenue Anticipation Notes, 4.50% 7/1/96 4.50 3,900 3,908
Florida - 7.90%
Sunshine State Governmental Financing
Commission Revenue Bonds, TECP:
Series G, 3.25% 4/24/96 3.25 2,600 2,600
Series L, 3.35% 5/17/96 3.35 1,000 1,000
3.15% 5/20/96 3.15 1,000 1,000
Jacksonville Electric Authority Electric System,
Tax-Exempt Commercial Paper Notes, TECP:
Series D-1, 3.30% 4/24/96 3.30 2,700 2,700
3.35% 5/14/96 3.35 1,400 1,400
Series D-1, 3.40% 6/6/96 3.40 1,000 1,000
Orange County Health Facilities Authority
Refunding Program Revenue Bonds, Series 1985
(Pooled Hospital Loan Program), (Adjustable
Convertible Extendable Securities-ACES),
MBIA Insured, TECP, 3.20% 4/30/96 3.20 2,000 2,000
Georgia - 2.02%
Municipal Electric Authority Subordinated
Bonds, Money Market Municipal:
Project I, 1994-C, 3.10% 4/4/96 3.10 1,000 1,000
Project I, 1994-E, 3.20% 4/11/96 3.20 1,000 1,000
Project I, 1994-D, 3.40% 5/2/96 3.40 1,000 1,000
Hawaii - 3.78%
Department of Budget and Finance
Special Purpose Revenue Bonds (Kuakini
Medical Center Project), Floating Rate Monthly
Demand, Series 1984, VRDN, 3.40% 4/3/96* 3.40 800 800
Housing Finance and Development Corporation,
Affordable Rental Housing Program Revenue
Bonds, 1993 Series A, VRDN, 3.50% 4/3/96* 3.50 1,000 1,000
City and County of Honolulu General Obligation
Bond Anticipation Notes, TECP:
3.15% 5/2/96 3.15 1,500 1,500
3.30% 5/16/96 3.30 1,000 1,000
3.25% 5/17/96 3.25 1,300 1,300
Illinois - 2.43%
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:
Series 2016, 3.20% 4/29/96 3.20 1,000 1,000
Series 2014, 3.20% 5/8/96 3.20 1,100 1,100
Health Facilities Authority Revenue Bonds
(Hospital Sisters Services Inc. Obligated
Group Project), Series 1985 E, MBIA Insured,
VRDN, 3.30% 4/3/96* 3.30 1,500 1,500
Indiana - 3.71%
Jasper County, Variable Rate Demand Pollution
Control Refunding Revenue Bonds (Northern
Indiana Public Service Company Project),
Series 1988C, TECP:
3.20% 4/9/96 3.20 2,000 2,000
3.20% 5/2/96 3.20 1,000 1,000
3.35% 5/10/96 3.35 1,500 1,500
3.25% 5/13/96 3.25 1,000 1,000
Kansas - 0.68%
City of Burlington Pollution Control
Refunding and Improvement Revenue Bonds
(Kansas City Power & Light Company Project),
Series 1985, TECP, 3.35% 4/1/96 3.35 1,000 1,000
Kentucky - 2.49%
Pendleton County Multi-County Lease
Revenue Bonds (Kentucky Association of
Counties Leasing Trust Program), Series
1989, Money Market Municipal:
3.25% 4/3/96 3.25 2,300 2,300
3.10% 4/8/96 3.10 1,385 1,385
Louisiana - 3.04%
Jefferson Parish Hospital Service District #2
Hospital Revenue Bonds, Series 1985, FGIC
Insured, VRDN, 3.35% 4/3/96* 3.35 2,100 2,100
Lake Charles Harbor and Terminal District
Flexible Demand Port Facilities Revenue
Bonds (CITGO Petroleum Corp. Project),
Series 1984, VRDN, 3.30% 4/3/96* 3.30 1,400 1,400
Public Facilities Authority Hospital
Revenue and Refunding Bonds (Willis-
Knighton Medical Center Project), Series
1993, AMBAC Insured, VRDN, 3.50% 4/3/96* 3.50 1,000 1,000
Maryland - 3.81%
Community Development Administration, Department
of Housing and Community Development, Single-Family
Program Bonds, 1996 First and 1996 Second Series,
3.45% Mandatory Put 10/1/96 3.45 1,000 1,000
Anne Arundel County Economic Development
Revenue Bonds (Baltimore Gas and Electric
Co. Project), Series 1988, TECP:
3.30% 4/3/96 3.30 1,000 1,000
3.25% 4/11/96 3.25 2,240 2,240
3.45% 5/13/96 3.45 1,400 1,400
Michigan - 0.64%
State Full Faith and Credit General
Obligation Notes, 4.00% 9/30/96 4.00 950 953
Minnesota - 2.02%
Regents of the University of Minnesota,
Variable Rate Demand Bonds:
Series G, TECP, 3.35% 5/15/96 3.35 1,000 1,000
Series 1985G, 3.25% Optional Put 8/1/96 3.25 2,000 1,998
Missouri - 2.43%
Higher Education Loan Authority Adjustable
Rate Demand Student Loan Revenue Bonds, VRDN:
Series 1990 A, 3.50% 4/3/96* 3.50 1,600 1,600
Series 1990 B, 3.50% 4/3/96* 3.50 1,000 1,000
City of Columbia, Special Obligation
Insurance Reserve Bonds, Series 1988 A,
VRDN, 3.40% 4/3/96* 3.40 1,000 1,000
Montana - 0.67%
City of Forsyth, Flexible Demand Pollution
Control Revenue Bonds (Portland General
Electric Company Colstrip Project),
Series 1983 A, VRDN, 3.30% 4/3/96* 3.30 1,000 1,000
Nevada - 0.88%
Washoe County Water Facilities Revenue Bonds
(Sierra Pacific Power Company Project),
Series 1990, TECP, 3.35% 5/9/96 3.35 1,300 1,300
North Carolina - 1.69%
Educational Facilities Finance Agency Revenue
Bonds (Duke University Project), VRDN:
Series 1991 D, 3.25% 4/3/96* 3.25 1,500 1,500
Series 1992 A, 3.25% 4/3/96* 3.25 1,000 1,000
Ohio - 1.69%
Ohio Water Development Authority, Pollution
Control Revenue Bonds, Series 1988
(Duquesne Light Co. Project), TECP:
3.35% 4/4/96 3.35 1,500 1,500
3.35% 4/10/96 3.35 1,000 1,000
Pennsylvania - 4.32%
Commonwealth Tax Anticipation
Notes First Series of 1995-1996,
4.50% 6/28/96 4.50 1,300 1,303
Carbon County Industrial Development Authority
Resource Recovery Revenue Bonds (Panther Creek
Partners Project), 1990 Series B, TECP,
3.30% 5/15/96 3.30 1,290 1,290
Delaware County Industrial
Development Authority:
Pollution Control Revenue Refunding Bonds
(Philadelphia Electric Company Project),
1988 Series A, TECP, 3.15% 5/1/96 3.15 1,500 1,500
Solid Waste Revenue Bonds (Scott Paper Co.
Project), Series 1984 D, VRDN, 3.35% 4/3/96* 3.35 1,000 1,000
Venango Industrial Development Authority
Resource Recovery Revenue Bonds (Scrubgrass
Project), 1990 Series A, TECP, 3.35% 5/10/96 3.35 1,300 1,300
Rhode Island - 1.22%
State General Obligation Tax
Anticipation Notes, 4.50% 6/28/96 4.50 1,800 1,803
Tennessee - 1.35%
State General Obligation Bond Anticipation
Notes, Series 1994A, VRDN, 3.50% 4/3/96* 3.50 2,000 2,000
Texas - 9.69%
State Tax and Revenue Anticipation Notes,
Series 1995A, 4.75% 8/30/96 4.75 1,650 1,659
City of Austin (Travis and Williamson Counties),
Combined Utility Systems Notes, TECP:
Series A, 3.15% 4/23/96 3.15 1,200 1,200
MBIA, 3.20% 4/26/96 3.20 1,400 1,400
MBIA, 3.15% 5/8/96 3.15 1,000 1,000
Series G, 3.45% 6/4/96 3.45 1,200 1,200
Brazos Higher Education Authority, Inc. Student
Loan Revenue Bonds, Series 1993B-1, VRDN,
3.40% 4/3/96* 3.40 1,000 1,000
Brazos River Authority, Collateralized
Pollution Control Revenue Refunding Bonds
(Texas Utilities Electric Co. Project),
Series 1994A, TECP:
3.30% 4/9/96 3.30 1,000 1,000
3.30% 4/10/96 3.30 3,000 3,000
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, 3.10% 4/8/96 3.10 1,900 1,900
Lower Neches Valley Authority Pollution Control
Revenue Bonds (Chevron U.S.A. Inc. Project),
Series 1987, 3.10% Optional Put 8/15/96 3.10 1,000 999
Utah - 4.12%
State Board of Regents Student Loan Revenue Bonds,
1988 Series C, AMBAC Insured, VRDN, 3.50% 4/3/96* 3.50 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 3,002
Variable Rate Power Supply Revenue and
Refunding Bonds, 1985 Series F2, TECP:
3.10% 4/2/96 3.10 1,000 1,000
3.25% 4/29/96 3.25 1,000 1,000
Virginia - 5.74%
Housing Development Authority, Commonwealth
Mortgage Bonds, 1995 Series D, Subseries
D-STEM-IV, 3.35% Mandatory Put 7/16/96 3.35 1,000 999
Industrial Development Authority of the City
of Chesapeake, Pollution Control Revenue
Bonds (Virginia Electric and Power Company
Project), Series 1985, Money Market Municipal,
3.25% 5/21/96 3.25 1,000 1,000
Industrial Development Authority of Fairfax
County, Unit Priced Demand Adjustable Hospital
Revenue Bonds (Inova Health System Hospitals
Project), Series 1993B, TECP:
3.25% 4/30/96 3.25 2,000 2,000
3.20% 5/7/96 3.20 1,100 1,100
Industrial Development Authority of the Town of
Louisa Pollution Control Revenue Bonds (Virginia
Electric and Power Company), Series 1984,
Money Market Municipal, 3.30% 4/12/96 3.30 2,000 2,000
Industrial Development Authority of the City
of Norfolk Hospital Revenue Bonds (Sentara
Hospitals-Norfolk Project), Series 1990A,
TECP, 3.15% 5/6/96 3.15 1,400 1,400
Washington - 1.55%
Student Loan Finance Association,
Guaranteed Student Loan Program, 1988
Series B, VRDN, 3.40% 4/3/96* 3.40 1,000 1,000
Port of Seattle General Obligation Bonds,
Series 1985, VRDN, 3.30% 4/3/96* 3.30 1,300 1,300
West Virginia - 4.35%
The County Commission of Marion County Solid
Waste Disposal Facility Revenue Bonds, 1990
Series A (Grant Town Cogeneration Project),
VRDN, 3.50% 4/3/96* 3.50 1,700 1,700
Public Energy Authority Energy Revenue Bonds
(Morgantown Energy Associates Project),
1989 Series A, TECP:
3.55% 10/5/95
3.35% 5/14/96 3.35 2,000 2,000
3.40% 5/21/96 3.40 1,000 1,000
3.40% 5/22/96 3.40 1,750 1,750
Wisconsin - 3.82%
State Operating Notes of 1995, 4.50%
6/17/96 4.50 5,650 5,661
Wyoming - 3.17%
Sweetwater County Pollution Control
Revenue Bonds (PacifiCorp Projects),
Series 1990A, VRDN, 3.40% 4/3/96* 3.40 2,000 2,000
Sweetwater County Customized Purchase
Pollution Control Revenue Refunding Bonds
(PacifiCorp Project), Series 1988A, TECP:
3.20% 4/3/96 3.20 1,000 1,000
3.20% 5/3/96 3.20 1,700 1,700
----------
Total Tax-Exempt Securities (cost: $146,261,000) 146,258
Excess of cash, prepaid expenses, and receivables
over payables 1,901
----------
Net Assets $148,159
==========
</TABLE>
*Coupon rates may change periodically; "yield at
acquisition" reflects current coupon rate.
See Notes to Financial Statements
<TABLE>
The Tax-Exempt Money Fund of America
Financial Statements Unaudited
- ----------------------------------- ------------ ------------
Statement of Assets and Liabilities
at March 31, 1996 (dollars in thousands)
- ---------------------------------- ------------ ------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $146,261) $146,258
Cash 327
Receivables for--
Sales of fund's shares $919
Accrued interest 1,054 1,973
------------ ------------
148,558
Liabilities:
Payables for--
Repurchases of fund's shares 332
Dividends payable 24
Management services 43 399
Accrued expenses 0
------------ ------------
Net Assets at March 31, 1996 --
Equivalent to $1.00 per share on
148,159,600 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $148,159
=============
Statement of Operations Unaudited
for six months ended March 31, 1996 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 2,700
Expenses:
Management services fee $333
Distribution expenses 44
Transfer agent fee 74
Reports to shareholders 2
Registration statement and prospectus 45
Postage, stationery and supplies 19
Trustees' fees 8
Auditing and legal fees 34
Custodian fee 4
Taxes other than federal income tax 3
Other expenses 11
------------------
Total expenses before reimbursement 577
Reimbursement of expenses 86 491
------------ ------------
Net investment income 2,209
------------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 7
Net unrealized
depreciation on investments:
Beginning of period (7)
End of period (3)
------------
Net change in unrealized
depreciation on investments 4
------------
Net realized gain and unrealized
depreciation on investments 11
------------
Net Increase in Net Assets Resulting
from Operations $2,220
============
Statement of Changes in Net
Assets (dollars in thousands)
- ----------------------------------- ------------- -------------
Six months Year ended
ended
3/31/96 * 9/30/95
Operations: ------------- -------------
Net investment income $ 2,209 $ 4,914
Net realized gain (loss) 7 (12)
Net change in unrealized
depreciation on investments 4 8
------------- -------------
Net increase in net assets
resulting from operations 2,220 4,910
------------- -------------
Dividends Paid to Shareholders (2,209) (4,914)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
112,284,763 and 254,916,915
shares, respectively 112,285 254,917
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
2,021,692 and 4,518,581 shares,
respectively 2,022 4,519
Cost of shares repurchased:
116,581,023 and 279,235,665
shares, respectively (116,581) (279,236)
------------- -------------
Net decrease in net assets
resulting from capital share
transactions (2,274) (19,800)
------------- -------------
Total Decrease in Net Assets (2,263) (19,804)
Net Assets:
Beginning of period 150,422 170,226
------------- -------------
End of period $148,159 $150,422
============= ==============
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements (Unaudited)
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 fund seeks to provide income free from federal taxes,
while preserving capital and maintaining liquidity, through investments in
high-quality municipal securities maturing in one year or less. 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 daily after the determination of the fund's net investment income and
paid to shareholders monthly. 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 March 31, 1996, unrealized depreciation for book and federal income
tax purposes aggregated $3,000, of which $5,000 related to appreciated
securities and $8,000 related to depreciated securities. There was no
difference between book and tax realized gains on securities transactions for
the six months ended March 31, 1996. During the six months ended March 31,
1996, the fund realized, on a tax basis, a net capital gain of $8,000 on sales
of securities. The cost of portfolio securities for book and federal income
tax purposes was $146,261,000 at March 31, 1996.
3. The fee of $333,000 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 waivers amounted to $86,000 for the six months ended March 31, 1996.
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
six months ended March 31, 1996, distribution expenses under the Plan amounted
to $44,000. As of March 31, 1996, accrued and unpaid distribution expenses
were $7,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $74,000 under the terms of a contract that provides for transfer
agency services to be performed for the fund.
Trustees of the fund who are unaffiliated with CRMC may elect to defer part or
all of the fees earned for services as members of the Board. Amounts deferred
are not funded and are general unsecured liabilities of the fund. As of March
31, 1996, aggregate amounts deferred and earnings thereon were $12,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. As of March 31, 1996, accumulated undistributed net realized gain on
investments was $7,000.
The fund made purchases and sales of investment securities of $380,103,000
and $382,815,000, respectively, during the six months ended March 31, 1996.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS
- ----------------------------------------------- ------------------------ ------------- ---------- ---------- ----------
Six months Year ended September 30
ended ----------- ------------- ---------- ---------- ----------
3/31/96 /1/ 1995 1994 1993 1992 1991
------------------------ ------------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------------------------ ------------- ---------- ---------- ----------
Income from Investment Operations:
Net Investment income .015 .031 .020 .019 .029 .045
------------------------ ------------- ---------- ---------- ----------
Total income from investment operations .015 .031 .020 .019 .029 .045
------------------------ ------------- ---------- ---------- ----------
Less Distributions:
Dividends from net investment income (.015) (.031) (.020) (.019) (.029) (.045)
------------------------ ------------- ---------- ---------- ----------
Total distributions (.015) (.031) (.020) (.019) (.029) (.045)
------------------------ ------------- ---------- ---------- ----------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ============ ========= ========= =========
Total Return 1.47% /2/ 3.14% 1.98% 1.90% 2.96% 4.58%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $148 $150 $170 $121 $108 $107
Ratio of expenses to average net assets /3/ .33% /2/ .65% .65% .65% .65% .65%
Ratio of net income to average net assets 1.47% /2/ 3.09% 1.99% 1.88% 2.95% 4.43%
</TABLE>
/1/ Unaudited
/2/ Based on operations for the period shown and,
accordingly, not representative of a full year's
operations.
/3/ Had CRMC not waived fees, the fund's ratio of
expenses to average net assets would have been
.038%, 0.75%, 0.73%, 0.79%, 0.77% and 0.74%
for the period ended March 31, 1996 and the
years ended September 30, 1995, 1994, 1993,
1992 and 1991, respectively.
OFFICES OF THE FUNDS AND OF THE
INVESTMENT ADVISER,
CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster LLP
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUNDS' SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUNDS'
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the funds. If used as
sales material after June 30, 1996, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
[The American Funds Group(r)]
Litho in U.S.A. AGD/CG/2953
Lit. No. MMF-013-0596
Printed on recycled paper
