20 YEARS OF MONEY MARKET FUNDS
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, 1997
[The American Funds Group(r)]
[Photo: academic cap/tassel, diploma]
[Photo: eyeglasses]
[Photo: doorknob]
[Photo: attache, gloves]
[Photo: computer keyboard]
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 short-term 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 with effective maturities of
one year or less.
FOR CURRENT YIELDS, PLEASE CALL AMERICAN FUNDSLINE(R), TOLL-FREE, AT
800/325-3590; PRESS 1 FOR YIELD INFORMATION.
[chart]
SEVEN-DAY SECURITIES AND EXCHANGE COMMISSION YIELDS
For the quarters ended March 31, 1993-March 31, 1997
<TABLE>
<CAPTION>
Date The Cash The U.S. The Tax-Exempt The
Tax-Exempt
Management Treasury Money Money Money Fund
of
Trust Fund of Fund of America America
of America America (taxable equivalent (federally
yield) /2/
tax-free)/1/
<S> <C> <C> <C> <C>
March 1993 2.46 2.48 2.98 1.80
June 1993 2.51 2.41 2.88 1.74
September 1993 2.44 2.40 3.43 2.07
December 1993 2.60 2.47 3.41 2.06
March 1994 2.80 2.56 2.76 1.67
June 1994 3.64 3.20 3.49 2.11
September 1994 4.17 3.86 4.24 2.56
December 1994 5.34 4.78 6.21 3.75
March 1995 5.57 5.15 5.51 3.33
June 1995 5.44 5.03 5.20 3.14
September 1995 5.26 4.86 5.28 3.19
December 1995 5.14 4.68 5.56 3.36
March 1996 4.77 4.41 4.42 2.67
June 1996 4.77 4.47 4.64 2.80
September 1996 4.82 4.57 4.85 2.93
December 1996 4.87 4.38 5.02 3.03
March 1997 4.85 4.69 4.54 2.74
</TABLE>
/1/Results for The Tax-Exempt Money Fund of America reflect the effect of a
partial management fee waiver. Without the waiver, the results would have been
lower. On March 31, the fund's seven-day yield with the fee waiver was 2.74%.
Had the full management fee been applied, the yield would have been 2.68%.
/2/Represents the fund's taxable equivalent yield calculated at the maximum
39.6% federal tax rate.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE 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.
[watermark: names of the three money market funds]
FELLOW SHAREHOLDERS:
As our recent six-month reporting period drew to a close, rising turbulence in
the U.S. stock and bond markets served as a good reminder of the valuable role
money market funds can play in a long-term investment portfolio. While stock
funds can provide long-term growth of capital and bond funds offer an
opportunity for higher income, money market funds can provide stable value and
a reasonable return through investments in high-quality, short-term securities.
After slowing briefly in the fall of 1996, the economy picked up speed in the
fourth quarter, and growth was even stronger in the first three months of the
new calendar year. The strengthening dollar and excess global capacity held
import prices in check, putting pressure on U.S. producers to keep prices low.
Productivity improvements also contributed to the price moderation.
Nonetheless, February's economic data - indicating continued low unemployment,
rising wages and strong consumer spending - raised concerns about inflation. On
March 25, the Federal Reserve Board responded by raising the federal funds rate
(the rate banks charge each other for overnight loans) by a quarter of a
percentage point, to 5.5%. The U.S. stock market initially reacted negatively
to the news, while some short-term rates immediately inched upward after moving
very little for six months or more.
As of March 31, the funds' six-month investment results were as follows:
THE CASH MANAGEMENT TRUST OF AMERICA provided a six-month income return of 2.4%
with dividends reinvested, or 4.8% at an annualized rate.
THE U.S. TREASURY MONEY FUND OF AMERICA produced a six-month income return of
2.3% with dividends reinvested. Its annualized rate was 4.6%. This income is
exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA generated a federally tax-free six-month
income return of 1.4%, including reinvested dividends, or 2.8% at an annualized
rate. Investors in the 39.6% federal tax bracket would have had to earn a
taxable return of 2.3% (4.6% annualized) to match that of the fund.
All three money market funds outpaced (on an after-tax basis) the 1.4%
six-month rise in the Consumer Price Index, which measures changes in the cost
of living. Keeping your returns ahead of inflation - thus preserving the
purchasing power of your assets - is an important goal of each of the funds.
By investing in short-term assets with the objective of providing income,
preserving capital and maintaining liquidity, money market funds can serve a
longer term purpose in an investment portfolio. Many investors include cash
fund investments in their portfolios for diversification and to help stabilize
their total returns during periods of stock and bond market declines.
Check-writing privileges make paying larger bills easy, and the ability to
exchange money market shares for shares of other American Funds allows
investors to quickly take advantage of lower prices when they become available.
In periods like the current one, when short-term interest rates are on the
rise, money market funds have offered the added advantage of reacting swiftly
to such increases, allowing investors to quickly realize higher current
returns.
We are pleased that you have chosen an American Funds money market fund as part
of your financial plan and look forward to reporting to you again in six
months.
Sincerely,
[/s/ Paul G. Haaga, Jr.] [/s/ Abner D. Goldstine]
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
May 16, 1997
<TABLE>
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The Cash Management Trust of America
Investment Portfolio - Unaudited
March 31, 1997
Principal Market
Yield at Amount Value
Acquisition (000) (000)
Bankers' Acceptances - 0.23%
ABN-AMRO Bank NV
April 25, 1997 5.30% 9,000 8,967
--------------
Total Bankers' Acceptances 8,967
Certificates of Deposit - 3.20%
Lloyds Bank PLC
5.540% April 28, 1997 25,000 25,000
Morgan Guaranty Trust Co. of New York
5.560% May 23, 1997 50,000 50,001
National Westminster Bank PLC
5.375% April 1, 1997 50,000 50,000
--------------
Total Certificates of Deposit 125,001
Commercial Paper - 63.85%
A.I. Credit Corp.
April 9, 1997 20,000 19,974
April 16, 1997 15,000 14,965
ANZ (Delaware) Inc.
April 18, 1997 25,000 24,935
Abbey National North America
April 21, 1997 10,500 10,467
May 12, 1997 15,000 14,903
Abbott Laboratories
April 16, 1997 15,000 14,965
April 30, 1997 14,000 13,936
Alberta (Province of)
April 11, 1997 25,000 24,957
American Brands Inc.
April 8, 1997 20,000 19,976
April 14, 1997 6,500 6,487
American Express Credit Corp.
April 7, 1997 20,000 19,979
May 2, 1997 10,000 9,953
May 9, 1997 10,000 9,940
Ameritech Corp.
May 6, 1997 10,365 10,313
Ameritech Capital Funding Corp.
April 1, 1997(1) 20,000 19,997
May 12, 1997(1) 5,275 5,242
Amoco Co.
April 2, 1997 15,500 15,496
April 10, 1997 20,000 19,971
Anheuser-Busch Cos. Inc.
April 1, 1997(1) 18,000 17,997
ARCO British Ltd.
April 8, 1997 7,839 7,830
Associates Corp. of North America
April 1, 1997 50,000 49,991
Avco Financial Services Inc.
April 9, 1997 15,000 14,980
April 28, 1997 10,000 9,957
May 5, 1997 10,000 9,948
Bank of Montreal
April 3, 1997 20,000 19,991
Barclays U.S. Funding Corp.
April 21, 1997 30,000 29,908
Bayer Corp.
May 13, 1997(1) 25,000 24,850
BellSouth Telecommunications Inc.
April 21, 1997 8,000 7,975
Beneficial Corp.
April 28, 1997 20,000 19,917
May 7, 1997 5,600 5,570
British Columbia (Province of)
April 18, 1997 14,900 14,859
May 6, 1997 14,635 14,557
CIT Group Holdings Inc.
April 29, 1997 25,000 24,893
CPC International Inc.
April 30, 1997(1) 10,000 9,954
Campbell Soup Co.
April 17, 1997(1) 20,000 19,951
April 18, 1997 4,000 3,991
Canadian Imperial Holdings Inc.
May 22, 1997 25,000 24,801
Canadian Wheat Board
April 21, 1997 16,700 16,649
April 25, 1997 25,000 24,904
Chevron U.K. Investment PLC
April 7, 1997 10,000 9,990
April 28, 1997 25,000 24,897
Chevron Transport Corp.
April 18, 1997(1) 5,000 4,987
Coca Cola Co.
April 14, 1997 25,000 24,949
April 16, 1997 4,150 4,140
May 12, 1997 10,000 9,936
May 13, 1997 10,000 9,934
Commercial Credit Co.
April 25, 1997 24,100 24,011
Commerzbank U.S. Finance Inc.
May 20, 1997 25,000 24,811
John Deere Capital Corp.
April 25, 1997 25,000 24,908
May 14, 1997 7,900 7,847
Deutsche Bank Financial Inc.
May 7, 1997 25,000 24,864
Walt Disney Co.
April 21, 1997 17,985 17,930
April 28, 1997 14,000 13,942
Donnelley (R.R.) & Sons Co.
April 7, 1997(1) 12,993 12,980
Dresdner U.S. Finance Inc.
April 25, 1997 25,000 24,904
E.I. du Pont de Nemours and Co.
April 3, 1997 15,000 14,993
April 29, 1997 21,000 20,907
May 5, 1997 7,000 6,964
Electronic Data Systems Corp.
April 2, 1997(1) 6,700 6,698
April 25, 1997(1) 5,000 4,981
April 29, 1997(1) 10,000 9,958
April 30, 1997(1) 10,000 9,956
Exxon Imperial U.S. Inc.
April 2, 1997(1) 23,200 23,193
Ford Motor Credit Co.
April 9, 1997 25,000 24,967
April 22, 1997 29,500 29,404
May 1, 1997 25,000 24,885
France Telecom
April 22, 1997 30,000 29,904
Gannett Co.
April 3, 1997(1) 20,000 19,991
April 7, 1997(1) 20,000 19,979
Gaz de France
April 18, 1997 22,000 21,942
General Electric Capital Corp.
May 5, 1997 20,000 19,896
May 8, 1997 25,000 24,860
May 9, 1997 25,000 24,851
General Mills Inc.
April 21, 1997 10,000 9,968
Gillette Co.
April 1, 1997(1) 10,000 9,998
April 15, 1997(1) 25,000 24,945
Glaxo Wellcome PLC
April 4, 1997(1) 5,000 4,997
April 8, 1997(1) 20,000 19,976
April 21, 1997(1) 6,500 6,479
Halifax Building Society
April 15, 1997 10,000 9,978
April 16, 1997 15,000 14,965
April 28, 1997 10,000 9,957
H.J. Heinz Co.
April 14, 1997 13,000 12,972
April 16, 1997 10,000 9,976
April 23, 1997 5,000 4,983
Hershey Foods
April 16, 1997(1) 25,000 24,942
IBM Credit Corp.
April 30, 1997 20,000 19,912
May 5, 1997 8,300 8,256
International Business Machines Inc.
April 14, 1997 17,600 17,561
International Lease Finance Corp.
April 4, 1997 10,000 9,994
April 14, 1997 20,000 19,959
May 6, 1997 5,000 4,975
Kellogg Co.
May 2, 1997 25,000 24,890
May 22, 1997 10,000 9,921
Eli Lilly and Co.
May 19, 1997 15,000 14,891
Lucent Technologies Inc.
April 17, 1997 4,200 4,190
April 25, 1997 2,200 2,192
April 29, 1997 20,000 19,915
May 5, 1997 10,000 9,947
McDonald's Corp.
April 8, 1997 25,000 24,968
Minnesota Mining & Manufacturing Co.
April 17, 1997 25,000 24,940
Mobil Australia Finance Co.
April 30, 1997(1) 25,000 24,889
May 21, 1997(1) 15,000 14,881
Monsanto Co.
April 1, 1997(1) 21,100 21,096
April 9, 1997(1) 5,000 4,993
Motorola Credit Corp.
April 8, 1997 20,000 19,977
Motorola Inc.
April 11, 1997 20,000 19,968
National Australia Funding (Deleware) Inc.
May 6, 1997 10,000 9,947
May 19, 1997 15,000 14,890
National Rural Utilities Cooperative Finance Corp.
April 7, 1997 20,000 19,980
Nestle Capital Corp.
April 29, 1997 23,200 23,098
Pacific Bell
April 1, 1997 30,000 29,994
Panasonic Finance Inc.
April 4, 1997(1) 5,000 4,997
April 14, 1997(1) 30,000 29,938
J.C. Penny Funding Corp.
April 7, 1997(1) 25,000 24,974
PepsiCo, Inc.
April 9, 1997 4,790 4,783
April 15, 1997 19,000 18,960
April 23, 1997 10,000 9,966
Pfizer Inc.
April 21, 1997(1) 5,000 4,984
April 22, 1997(1) 15,000 14,953
April 23, 1997(1) 10,000 9,965
April 24, 1997(1) 4,760 4,743
Pitney Bowes Credit Corp.
April 4, 1997 35,000 34,979
Procter & Gamble Co.
April 9, 1997 20,000 19,974
April 11, 1997 10,000 9,984
April 22, 1997 10,000 9,966
RTZ America Inc.
April 8, 1997(1) 20,000 19,977
May 27, 1997(1) 10,000 9,911
Safeco Credit Co. Inc.
April 11, 1997 10,000 9,984
May 1, 1997 3,000 2,986
May 2, 1997 8,200 8,161
Sara Lee Corp.
April 7, 1997 25,000 24,975
Schering Corp.
May 7, 1997 25,400 25,262
Shell Oil Co.
April 2, 1997 36,800 36,789
Siemens Corp.
April 9, 1997 10,000 9,987
May 14, 1997 15,000 14,907
Southwestern Bell Telephone Co.
April 4, 1997 20,000 19,988
April 16, 1997 30,000 29,930
Toronto-Dominion Holdings USA Inc.
May 16, 1997 25,000 24,829
Toyota Motor Credit Corp.
April 14, 1997 5,000 4,990
April 22, 1997 10,000 9,967
May 19, 1997 8,700 8,636
UBS Finance (Delaware) Inc.
April 1, 1997 50,000 49,991
Unilever Capital Corp.
April 21, 1997(1) 10,000 9,968
April 23, 1997(1) 15,000 14,948
United Parcel Service of America
April 10, 1997 50,000 49,932
US West Communications Inc.
April 9, 1997 14,400 14,381
April 11, 1997 10,000 9,985
Warner-Lambert Co.
May 9, 1997(1) 25,000 24,859
May 15, 1997(1) 10,000 9,931
Weyerhaeuser Co.
May 23, 1997 10,000 9,920
--------------
Total Commercial Paper 2,496,008
Federal Agency Discount Notes - 28.17%
Federal Farm Credit Banks
April 1, 1997 12,985 12,983
April 10, 1997 8,400 8,388
April 15, 1997 7,000 6,984
Federal Home Loan Bank
April 3, 1997 20,890 20,881
April 17, 1997 25,000 24,937
April 24, 1997 99,900 99,552
May 1, 1997 44,370 44,169
May 6, 1997 8,000 7,958
May 8, 1997 130,000 129,280
Federal Home Loan Mortgage Corp.
April 7, 1997 33,011 32,977
April 10, 1997 80,300 80,183
April 18, 1997 36,938 36,840
May 2, 1997 57,475 57,206
May 5, 1997 22,700 22,584
Federal National Mortgage Assn.
April 3, 1997 75,000 74,967
April 4, 1997 63,450 63,413
April 11, 1997 34,920 34,864
April 18, 1997 20,000 19,948
April 24, 1997 117,855 117,449
April 28, 1997 15,505 15,442
April 29, 1997 10,000 9,958
May 2, 1997 50,000 49,756
May 6, 1997 30,000 29,850
Student Loan Marketing Assn.(2)
September 18, 1997 60,000 60,000
Tennessee Valley Authority
May 12, 1997 16,000 15,898
May 13, 1997 25,000 24,836
--------------
Total Federal Agency Discount Notes 1,101,303
Other - 1.34%
Canada Bills
April 11, 1997 40,000 39,936
April 14, 1997 12,500 12,474
--------------
Total Other 52,410
U.S. Treasury Securities - 0.64%
U.S. Treasury bills 4/17/97 25,000 24,941
--------------
Total U.S. Treasury Securities 24,941
Total Investment Securities
(Cost: $3,808,628,000) 3,808,630
Excess of cash and receivables over
payables 100,274
--------------
Net Assets $3,908,904
=========
(1)Restricted securities requiring sale to
institutional investors. Deemed to be as
liquid as unrestricted securities in the
portfolio.
(2)Coupon rate changes weekly; description
of issue and yield at acquisition reflect
current coupon rate.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<S> <C> <C>
Cash Management Trust of America Unaudited
Financial Statements
- ---------------------------------------- ----------- -----------
Statement of Assets and Liabilities
at March 31, 1997 (dollars in thousands)
- ---------------------------------------- ----------- -----------
Assets:
Investment securities at market
(cost: $3,808,628) $3,808,630
Cash 2,731
Receivables for-
Sales of fund's shares $153,209
Accrued interest 618 153,827
----------- -----------
3,965,188
Liabilities:
Payables for-
Repurchases of fund's shares 53,119
Dividends payable 1,000
Management services 900
Accrued expenses 1,265 56,284
----------- -----------
Net Assets at March 31, 1997-
Equivalent to $1.00 per share on
3,908,896,674 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $3,908,904
-----------
Statement of Operations
for the six months
ended March 31, 1997 (dollars in thousands)
----------- -----------
Investment Income:
Income:
Interest $ 93,271
Expenses:
Management services fee $5,008
Distribution expenses 1,344
Transfer agent fee 2,384
Reports to shareholders 243
Registration statement and prospectus 368
Postage, stationery and supplies 1,093
Trustees' fees 19
Auditing and legal fees 38
Custodian fee 50
Taxes (other than federal income tax) 49
Other expense 53 10,649
----------- -----------
Net investment income 82,622
-----------
Unrealized Depreciation
on Investments:
Net unrealized appreciation
on investments:
Beginning of period 9
End of period 2
-----------
Net unrealized depreciation on
investments (7)
-----------
Net Increase in Net Assets Resulting
from Operations $82,615
============
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ----------- -----------
Six months Year ended
ended
3/31/97 * 9/30/96
Operations: ----------- -----------
Net investment income $ 82,622 $ 153,244
Net unrealized (depreciation)
appreciation on investments (7) 10
----------- -----------
Net increase in net assets
resulting from operations 82,615 153,254
----------- -----------
Dividends Paid to Shareholders (82,618) (153,257)
----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
5,918,897,990 and 10,707,976,952
shares, respectively 5,918,898 10,707,977
Proceeds from shares issued in
reinvestment of net investment income
dividends:
75,672,705 and 140,296,630 shares,
respectively 75,673 140,296
Cost of shares repurchased:
5,389,786,117 and 10,539,920,205
shares, respectively (5,389,786) (10,539,920)
----------- -----------
Net increase in net assets resulting
from capital share transactions 604,785 308,353
----------- -----------
Total Increase in Net Assets 604,782 308,350
Net Assets:
Beginning of period 3,304,122 2,995,772
----------- -----------
End of period $3,908,904 $3,304,122
=========== ===========
See Notes to Financial Statements
*Unaudited
</TABLE>
THE CASH MANAGEMENT TRUST OF AMERICA
Notes to Financial Statements
1.The Cash Management Trust 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 on cash reserves, while
preserving capital and maintaining liquidity, through investments in
high-quality short-term money market instruments. 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. Portfolio securities with 60 days or less remaining to maturity are
valued at amortized cost, which approximates market value. Portfolio securities
with more than 60 days to maturity are valued at the mean of their
representative quoted bid and asked prices when such prices are available.
However, in circumstances where the investment adviser deems it appropriate to
do so, such securities will be valued at the mean of their representative
quoted bid and asked prices or, if such prices are not available, at prices for
securities of comparable maturity, quality and type. When pricing service or
market quotations are not readily available, securities will be valued at fair
value by the Board of Trustees or a committee thereof.
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. Discounts and
premiums on securities purchased are amortized over the life of the respective
securities. Dividends are declared daily after the determination of the fund's
net investment income and paid to shareholders monthly.
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 net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of March 31, 1997, unrealized appreciation for book and federal income tax
purposes aggregated $2,000, of which $4,000 related to appreciated securities
and $2,000 related to depreciated securities. There was no difference between
book and tax realized gains on securities transactions for the six months ended
March 31, 1997. The cost of portfolio securities for book and federal income
tax purposes was $3,808,628,000 at March 31, 1997.
3. The fee of $5,008,000 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 0.32% of the first $1 billion of average net assets; 0.29%
of such assets in excess of $1 billion but not exceeding $2 billion; and 0.27%
of such assets in excess of $2 billion.
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, 1997, distribution expenses under the plan were
$1,344,000. As of March 31, 1997, accrued and unpaid distribution expenses were
$160,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,384,000.
Trustees who are unaffiliated with CRMC may elect to defer part or all of the
fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of March 31,
1997, aggregate amounts deferred and earnings thereon were $19,000.
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. The fund made purchases and sales of investment securities of
$31,877,400,000 and $31,466,107,000, respectively, during the six months ended
March 31, 1997.
<TABLE>
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THE CASH MANAGEMENT TRUST OF AMERICA
PER-SHARE DATA AND RATIOS
- ------------------------------ -------- -------- ------ -------- -------- --------
Six Months Year Ended September 30
-------- -------- ------ -------- -------- --------
ended 3/31/97 /1/ 1996 1995 1994 1993 1992
-------- -------- ------ -------- -------- --------
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 .024 .050 .052 .031 .025 .036
Total income from investment -------- -------- -------- -------- -------- --------
operations .024 .050 .052 .031 .025 .036
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income (0.024) (0.050) (0.052) (0.031) (0.025) (0.036)
-------- -------- -------- -------- -------- --------
Total distributions (0.024) (0.050) (0.052) (0.031) (0.025) (0.036)
-------- ------- -------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=========== =========== =========== =========== =========== ===========
Total Return 2.41% /2/ 5.06% 5.34% 3.10% 2.57% 3.64%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $3,909 $3,304 $2,996 $2,738 $1,940 $2,090
Ratio of expenses to average
net assets .30% /2/ .60% .60% .68% .65% .63%
Ratio of net income to
average net assets 2.36% /2/ 4.95% 5.21% 3.14% 2.57% 3.59%
/1/ Unaudited
/2/ Based on operations for the
period shown and, accordingly,
are not representative of a
full year's operations.
</TABLE>
<TABLE>
<S> <C> <C> <C>
The U.S. Treasury Money Fund of America Unaudited
Investment Portfolio
March 31, 1997
Principal Market
Yield at Amount Value
Acquisition (000) (000)
- ------------------------------------------------ ------------- ------- -------------
U.S. Treasury Securities - 99.87%
U.S. Treasury bills 4/3/97 5.06% $ 13,080 $ 13,075
U.S. Treasury bills 4/10/97 5.04% 13,700 13,682
U.S. Treasury bills 4/17/97 5.07% - 5.30% 78,800 78,629
U.S. Treasury bills 4/24/97 5.07% - 5.09% 37,825 37,707
U.S. Treasury bills 5/8/97 5.05% 29,200 29,052
U.S. Treasury bills 5/15/97 5.06% - 5.17% 20,875 20,750
U.S. Treasury bills 5/22/97 5.02% 24,700 24,522
U.S. Treasury bills 5/29/97 5.05% - 5.27% 36,020 35,730
U.S. Treasury bills 6/5/97 5.14% 20,000 19,811
-------------
Total Investment Securities
(cost $272,926,000) 272,958
Excess of cash, prepaid expenses, 1,094
and receivables over payables -------------
Net Assets $274,052
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
U.S. Treasury Money Fund of America
Financial Statements Unaudited
- ---------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at March 31, 1997 (dollars in thousands)
- ---------------------------------------- ------------ ------------
Assets:
Investment securities at market
(cost: $272,926) $272,958
Cash 411
Receivables for --
Sales of fund's shares 3,984
------------
277,353
Liabilities:
Payables for --
Repurchases of fund's shares $2,837
Dividends payable 47
Management services 83
Accrued expenses 334 3,301
------------ ------------
Net Assets at March 31, 1997 --
Equivalent to $1.00 per share on
274,021,328 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $274,052
=============
Statement of Operations Unaudited
for the six months ended March 31, 1997 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 6,805
Expenses:
Management services fee $399
Distribution expenses 118
Transfer agent fee 139
Reports to shareholders 35
Registration statement and prospectus 69
Postage, stationery and supplies 32
Trustees' fees 8
Auditing and legal fees 24
Custodian fee 7
Taxes other than federal income tax 5
Organization expense 0
Other expenses 20 856
------------
856
Reimbursement of expenses 0
------------ ------------
Net investment income 5,949
------------
Unrealized Appreciation
on Investments:
Net unrealized
appreciation on investments:
Beginning of period 23
End of period 32
------------
Net unrealized appreciation
on investments 9
------------
Net Increase in Net Assets Resulting
from Operations $5,958
============
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------- -------------
Six months Year ended
ended
3/31/97 * 9/30/96
Operations: ------------- -------------
Net investment income 5,949 $ 10,600
Net unrealized appreciation
on investments 9 56
------------- -------------
Net increase in net assets
resulting from operations 5,958 10,656
------------- -------------
Dividends Paid to Shareholders (5,949) (10,601)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
226,418,210 and 388,209,397
shares, respectively 226,418 388,209
Proceeds from shares issued in
reinvestment of net investment income
dividends 5,593,949 and
10,027,797 shares, respectively 5,594 10,028
Cost of shares repurchased:
213,778,856 and 373,634,115
shares, respectively (213,779) (373,634)
------------- -------------
Net increase in net assets resulting
from capital share transactions 18,233 24,603
------------- -------------
Total Increase in Net Assets 18,242 24,658
Net Assets:
Beginning of period 255,810 231,152
------------- -------------
End of period $274,052 $255,810
========== ==========
* Unaudited
See Notes to Financial Statements
</TABLE>
THE U.S. TREASURY MONEY FUND OF AMERICA
Notes to Financial Statements
1.The U.S. Treasury 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 on cash reserves, while
preserving capital and maintaining liquidity, through investments in U.S.
Treasury 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.
Portfolio securities with 60 days or less remaining to maturity are
valued at amortized cost, which approximates market value. Portfolio securities
with more than 60 days to maturity are valued at the mean of their
representative quoted bid and asked prices when such prices are available.
However, in circumstances where the investment adviser deems it appropriate to
do so, such securities will be valued at the mean of their representative
quoted bid and asked prices or, if such prices are not available, at prices for
securities of comparable maturity, quality and type. When pricing service or
market quotations are not readily available, securities will be valued at fair
value by the Board of Trustees or a committee thereof.
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. Discounts and
premiums on securities purchased are amortized over the life of the respective
securities. Dividends are declared daily after the determination of the fund's
net investment income and are paid to shareholders monthly.
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 net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of March 31, 1997, unrealized appreciation for book and federal income tax
purposes aggregated $32,000, of which $39,000 related to appreciated securities
and $7,000 related to depreciated securities. There was no difference between
book and tax realized gains on securities transactions for the six months ended
March 31, 1997. The cost of portfolio securities for book and federal income
tax purposes was $272,926,000 at March 31, 1997.
3. The fee of $399,000 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 0.30% of the first $800 million of average net assets and
0.285% of such assets in excess of $800 million. The Investment Advisory and
Service Agreement provides for fee reductions to the extent that annual
operating expenses exceed 0.75% of the average daily 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 February 1, 2001. CRMC has also voluntarily
agreed to waive its fees to the extent necessary to ensure that the fund's
expenses do not exceed 0.675% of the average daily 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. For the
six months ended March 31, 1997, no fees were waived.
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, 1997, distribution expenses under the Plan were
$118,000. As of March 31, 1997, accrued and unpaid distribution expenses were
$18,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $139,000.
Trustees who are unaffiliated with CRMC may elect to defer part or all of
the fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of March 31, 1997,
aggregate amounts deferred and earnings thereon were $8,000.
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. The fund made purchases and sales of investment securities of $602,438,000
and $591,845,000, respectively, during the six months ended March 31, 1997.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS
- ------------------------------ -------- -------- -------- -------- -------- --------
Six months Year ended September 30
ended -------- -------- -------- -------- --------
3/31/97 /1/ 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
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 .022 .046 .048 .028 .025 .036
Total income from investment -------- -------- -------- -------- -------- --------
operations .022 .046 .048 .028 .025 .036
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income (.022) (.046) (.048) (.028) (.025) (.036)
-------- -------- -------- -------- -------- --------
Total distributions (.022) (.046) (.048) (.028) (.025) (.036)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ======== ========
Total Return 2.25% /2/ 4.66% 4.89% 2.89% 2.49% 3.61%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $274 $256 $231 $199 $140 $106
Ratio of expenses to average
net assets .32% /2/ .65% .67% .67% .61% .68%
Ratio of net income to
average net assets 2.24% /2/ 4.53% 4.79% 2.91% 2.43% 3.51%
/1/ Unaudited
/2/ Based on operations for the
period shown and, accordingly,
not representative of a full year's
operations.
</TABLE>
<TABLE>
<S> <C> <C> <C>
The Tax-Exempt Money Fund of America
Investment Portfolio, March 31, 1997 Principal Market
Unaudited Yield at Amount Value
Acquisition (000) (000)
Municipal Securities
- -------------------------------------------------------- ------------- ---------- ----------
Alaska - 3.35%
Housing Finance Corporation General
Purpose Bonds, 1991 Series C, VRDN,
3.50%, 4/2/97* 3.50% $3,500 $3,500
City of Valdez, Marine Terminal Revenue
Refunding Bonds (ARCO Transportation
Alaska, Inc. Project), 1994 Series C, TECP:
3.45% 4/4/97 3.45 1,000 1,000
3.35% 4/4/97 3.35 1,000 1,000
Arizona - 1.82%
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, 3.45% 4/15/97* 3.45 1,000 1,000
Salt River Project Agricultural Improvement and
Power District, Promissory Notes, TECP:
Series G, 3.40% 4/7/97 3.40 1,000 1,000
Series L, 3.30% 5/5/97 3.30 1,000 1,000
Arkansas - 1.22%
Board of Trustees of the University of
Arkansas Various Facility Revenue
Bonds (UAMS Campus), Series 1994
VRDN, 3.55% 4/2/97* 3.55 2,000 2,000
California - 1.47%
County of Los Angeles, 1996-97 Tax and Revenue
Anticipation Notes, Series A, 4.50% 6/30/97 3.85 2,420 2,423
Colorado - 3.23%
State Tax and Revenue Anticipation Notes,
1996 Series A, 4.50% 6/27/97 3.77 5,300 5,307
Florida - 5.72%
Sunshine State Governmental Financing
Commission Revenue Bonds, TECP:
Series L:
3.15% 4/1/97 3.15 1,500 1,500
3.25% 5/12/97 3.25 1,000 1,000
Series G, 3.40% 5/5/97 3.40 2,600 2,600
Jacksonville Electric Authority Electric System,
Series D-1, TECP, 3.20% 4/2/97 3.20 4,300 4,300
Georgia - 7.09%
Municipal Electric Authority, Subordinated
Bonds, Money Market Municipal,
Project I:
Series 1985-C, 3.40% 4/8/97 3.40 1,910 1,910
Series 1994-D, 3.40% 4/8/97 3.40 2,450 2,450
Series 1994-E, 3.40% 4/8/97 3.40 1,000 1,000
Series 1985-A, 3.30% 5/13/97 3.30 1,000 1,000
Municipal Gas Authority, Gas Revenue Bonds:
(Southern Portfolio I Project), Series D,
TECP, 3.25% 4/23/97 3.25 2,800 2,800
(Transco Portfolio I Project), Series A,
TECP, 3.15% 4/2/97 3.15 2,500 2,500
Hawaii - 2.01%
City and County of Honolulu General
Obligation Bond Anticipation Notes,
TECP, 3.30% 5/6/97 3.30 3,300 3,300
Indiana - 0.79%
City of Sullivan, Floating/Fixed Rate Pollution
Control Revenue Bonds (Hoosier Energy
Rural Electric Cooperative, Inc. Project)
Series 1985-L5, TECP, 3.40% 4/7/97 3.40 1,300 1,300
Kansas - 2.01%
City of Burlington Pollution Control Refunding
and Improvement Revenue Bonds
(Kansas City Power & Light Co. Project),
1985 Series A, TECP, 3.40% 4/4/97 3.40 3,300 3,300
Kentucky - 4.13%
Pendleton County, Multi-County Lease
Revenue Bonds (Kentucky Association
of Counties Leasing Trust Program),
Series 1989, Money Market Municipal:
3.20% 4/2/97 3.20 4,785 4,785
3.35% 5/7/97 3.35 2,000 2,000
Louisiana - 3.22%
Public Facilities Authority Hospital Revenue
and Refunding Bonds (Willis-Knighton
Medical Center Project), Series 1993,
AMBAC Insured, VRDN, 3.50% 4/2/97* 3.50 900 900
Parish of Ascension, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Borden, Inc. Project), Series 1992,
VRDN, 3.50% 4/2/97* 3.50 3,000 3,000
Lake Charles Harbor and Terminal District,
Flexible Demand Port Facilities Revenue
Bonds (CITGO Petroleum Corp. Project),
Series 1984, VRDN, 3.45% 4/2/97* 3.45 1,400 1,400
Maine - 0.67%
General Obligation Tax Anticipation Notes,
Series 1997, 4.50% 6/27/97 3.40 1,100 1,102
Maryland - 6.17%
Anne Arundel County Economic Development
Revenue Bonds (Baltimore Gas and
Electric Co. Project), Series 1988, TECP:
3.35% 5/14/97 3.35 3,940 3,940
3.35% 5/16/97 3.35 2,000 2,000
Montgomery County Consolidated
Commercial Paper Bond Anticipation
Notes, Series 1995, TECP, 3.30% 5/8/97 3.30 4,200 4,200
Michigan - 1.22%
General Obligation Notes, Series 1997, 3.46 2,000 2,008
4.50% 9/30/98
Minnesota - 3.53%
Regents of the University of Minnesota,
Variable Rate Demand Bonds, TECP:
Series 1985-G, 3.35% 4/3/97 3.35 2,000 2,000
Series 1985-H, 3.35% 4/3/97 3.35 1,200 1,200
Series 1985-I, 3.35% 4/3/97 3.35 1,600 1,600
Series 1991-A, 3.35% 4/3/97 3.35 1,000 1,000
Missouri - 6.63%
State Environmental Improvement and
Energy Resources Authority, Unit
Priced Demand Adjustable Pollution
Control Revenue Bonds (Union
Electric Co. Project) Series 1985A,
TECP, 3.35% 4/14/97 3.35 2,000 2,000
Higher Education Loan Authority,
Adjustable Rate Demand Student Loan
Revenue Bonds, VRDN:
Series 1990 A, 3.50% 4/2/97* 3.50 1,600 1,600
Series 1990 B, 3.50% 4/2/97* 3.50 1,000 1,000
City of Columbia, Special Obligation
Insurance Reserve Bonds, Series 1988 A,
VRDN, 3.45% 4/2/97* 3.45 1,000 1,000
City of Independence, Variable Rate
Demand Water Utility Revenue
Bonds, Series 1986, TECP:
3.30% 5/2/97 3.30 2,000 2,000
3.40% 5/2/97 3.40 2,300 2,300
3.40% 5/2/97 3.40 1,000 1,000
Montana - 1.22%
State Tax and Revenue Anticipation Notes,
Series 1997, 4.50% 6/27/97 3.70 2,000 2,003
New York - 1.22%
City Municipal Water Finance Authority,
Series 1, TECP, 3.35% 4/3/97 3.35 2,000 2,000
North Carolina - 1.52%
Educational Facilities Finance Agency, Revenue
Bonds (Duke University Project), VRDN:
Series 1991 D, 3.35% 4/3/97* 3.35 1,500 1,500
Series 1992 A, 3.35% 4/3/97* 3.35 1,000 1,000
Ohio - 1.52%
Water Development Authority, Pollution
Control Revenue Bonds, Series 1988
(Duquesne Light Co. Project), TECP:
3.40% 5/9/97 3.40 1,000 1,000
3.40% 5/9/97 3.40 1,500 1,500
Pennsylvania - 9.73%
Commonwealth Tax Anticipation Notes,
First Series of 1996-1997, 4.50% 6/30/97 3.52 3,700 3,706
Higher Education Assistance Agency Student
Loan Adjustable Rate Revenue Bonds,
1997 Series A, VRDN, 3.50% 4/2/97* 3.50 2,000 2,000
Allegheny County Industrial Development
Authority, Customized Purchase Environmental
Improvement Revenue Refunding Bonds
(United States Steel Corp. Project),
Series 1986, TECP:
3.35% 4/9/97 3.35 1,000 1,000
3.40% 5/7/97 3.40 1,000 1,000
Beaver County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds
(Duquesne Light Co. Beaver Valley Project),
1990 Series C, TECP:
3.20% 4/3/97 3.20 2,000 2,000
3.40% 4/3/97 3.40 2,000 2,000
Carbon County Industrial Development Authority,
Resource Recovery Revenue Bonds (Panther Creek
Partners Project), 1990 Series B, TECP,
3.45% 5/12/97 3.45 1,290 1,290
Delaware County Industrial Development Authority
Solid Waste Revenue Bonds (Scott Paper Co. Project),
Series 1984 D, VRDN, 3.45% 4/2/97* 3.45 1,000 1,000
Montgomery County Industrial Development Authority
Pollution Control Revenue Refunding Bonds (PECO
Energy Co. Project), 1994 Series A, TECP,
3.20% 4/22/97 3.20 2,000 2,000
Texas - 8.98%
State Tax and Revenue Anticipation Notes,
Series 1997, 4.75% 8/29/97 3.95 4,750 4,769
City of Austin (Travis and Williamson Counties),
Combined Utility Systems Notes, TECP,
Series A, 3.40% 4/8/97 3.40 3,000 3,000
Brazos Higher Education Authority, Inc. Student
Loan Revenue Bonds, Series 1993B-1, VRDN,
3.45% 4/2/97* 3.45 1,000 1,000
Brazos River Authority, Collateralized
Pollution Control Revenue Refunding Bonds
(Texas Utilities Electric Co. Project),
Series 1994A, TECP, 3.35% 5/9/97 3.35 3,000 3,000
City of Brownsville Utility System, TECP,
Series A, 3.40% 4/3/97 3.40 2,000 2,000
Lower Neches Valley Authority Pollution Control
Revenue Bonds (Chevron U.S.A. Inc. Project),
Series 1987, 3.50% Optional Put 8/15/97* 3.50 1,000 1,000
Utah - 4.62%
Board of Regents, Student Loan Revenue Bonds, 1988
Series C, AMBAC Insured, VRDN, 3.50% 4/2/97* 3.50 1,100 1,100
Intermountain Power Agency:
Variable Rate Power Supply Revenue Bonds,
1985 Series F, 3.93% Optional Put 6/16/97* 3.93 3,000 3,000
Variable Rate Power Supply Revenue and
Refunding Bonds, 1985 Series F2, TECP,
3.05% 4/18/97 3.05 3,500 3,500
Vermont - 1.22%
State General Obligation Commercial Paper
Bond Anticipation Notes, Series J, TECP,
3.40% 4/9/97 3.40 2,000 2,000
Virginia - 4.50%
Industrial Development Authority of Fairfax
County, Unit Priced Demand Adjustable Hospital
Revenue Bonds (Inova Health System Hospitals
Project), Series 1993B, TECP:
3.25% 4/9/97 3.25 3,500 3,500
3.30% 4/28/97 3.30 2,000 2,000
Industrial Development Authority of the City
of Norfolk, Hospital Revenue Bonds (Sentara
Hospitals-Norfolk Project), Series 1990A,
TECP, 3.40% 4/8/97 3.40 1,900 1,900
Washington - 2.43%
Student Loan Finance Association,
Guaranteed Student Loan Program, 1988
Series B, VRDN, 3.50% 4/3/97* 3.50 1,000 1,000
Port of Seattle, General Obligation Bonds,
Series 1985, VRDN, 3.50% 4/2/97* 3.50 3,000 3,000
West Virginia - 3.32%
The County Commission of Marion County, Solid
Waste Disposal Facility Revenue Bonds, 1990
Series A (Grant Town Cogeneration Project),
VRDN, 3.55% 4/2/97* 3.55 1,700 1,700
Public Energy Authority, Energy Revenue Bonds
(Morgantown Energy Associates Project),
1989 Series A, TECP:
3.20% 4/4/97 3.20 1,000 1,000
3.25% 4/4/97 3.25 1,000 1,000
3.45% 4/4/97 3.45 1,750 1,750
Wisconsin - 0.73%
State Operating Notes of 1997,
4.50% 6/16/97 3.55 1,200 1,201
Wyoming - 3.16%
City of Gillette, Campbell County,
Pollution Control Revenue Bonds
(PacifiCorp Projects), Series 1988,
TECP, 3.25% 4/2/97 3.25 3,200 3,200
Sweetwater County Pollution Control
Revenue Bonds (PacifiCorp Projects),
Series 1990A, VRDN, 3.40% 4/2/97* 3.40 2,000 2,000
---------
Total Tax-Exempt Securitiex (cost: $161,857,000) 161,844
Excess of cash and receivables over payables 2,545
---------
Net Assets $164,389
=========
* Coupon rates may change periodically;
"yield at acquisition" reflects current coupon rate.
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
The Tax-Exempt Money Fund of America
Financial Statements Unaudited
- -------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at March 31, 1997 (dollars in thousands)
- ------------------------------------- ------------ ------------
Assets:
Investment securities at market
(cost: $161,857) $161,844
Cash 360
Receivables for--
Sales of fund's shares $2,564
Accrued interest 982 3,546
------------ ------------
165,750
Liabilities:
Payables for--
Repurchases of fund's shares 1,254
Dividends payable 27
Management services 80 1,361
Accrued expenses 0
------------ ------------
Net Assets at March 31, 1997 --
Equivalent to $1.00 per share on
164,396,769 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $164,389
=============
Statement of Operations Unaudited
for six months ended March 31, 1997 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 2,683
Expenses:
Management services fee $342
Distribution expenses 47
Transfer agent fee 74
Reports to shareholders 32
Registration statement and prospectus 29
Postage, stationery and supplies 21
Trustees' fees 5
Auditing and legal fees 27
Custodian fee 4
Taxes other than federal income tax 4
Other expenses 18
------------------
Total expenses before reimbursement 603
Reimbursement of expenses 96 507
------------ ------------
Net investment income 2,176
------------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 4
Net unrealized
depreciation on investments:
Beginning of period 6
End of period (13)
------------
Net change in unrealized
depreciation on investments (19)
------------
Net realized gain and unrealized
depreciation on investments (15)
------------
Net Increase in Net Assets Resulting
from Operations $2,161
============
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------- -------------
Six months Year ended
ended
3/31/97* 9/30/96
Operations: ------------- -------------
Net investment income $ 2,176 $ 4,218
Net realized gain 4 5
Net unrealized
(depreciation) appreciation
on investments (19) 13
------------- -------------
Net increase in net assets
resulting from operations 2,161 4,236
------------- -------------
Dividends Paid to Shareholders (2,176) (4,218)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
136,450,587 and 225,676,042
shares, respectively 136,450 225,676
Proceeds from shares issued in
reinvestment of net investment
income dividends:
1,989,726 and 3,845,965 shares,
respectively 1,990 3,846
Cost of shares repurchased:
117,755,020 and 236,244,699
shares, respectively (117,755) (236,243)
------------- -------------
Net increase (decrease) in net assets
resulting from capital share
transactions 20,685 (6,721)
------------- -------------
Total Increase (Decrease) in Net Assets 20,670 (6,703)
Net Assets:
Beginning of period 143,719 150,422
------------- -------------
End of period $164,389 $143,719
============= ==============
* Unaudited
See Notes to Financial Statements
</TABLE>
THE TAX-EXEMPT MONEY FUND OF AMERICA
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 fund seeks to provide income free from federal taxes,
while preserving capital and maintaining liquidity, through investments in
high-quality municipal securities with effective maturities of 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.
Tax-exempt securities with 60 days or less to maturity are valued at
amortized cost, which approximates market value. Securities with more than 60
days to maturity are valued at prices obtained from a national municipal bond
pricing service when such prices are available. The pricing service takes into
account various factors such as quality, yield and maturity of tax-exempt
securities comparable to those held by the fund, as well as actual bid and
asked prices on a particular day. 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 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 by
the Board of Trustees or a committee thereof.
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. Discounts and premiums
on securities purchased are amortized over the life of the respective
securities. Dividends are declared daily after the determination of the fund's
net investment income and paid to shareholders monthly.
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 net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of March 31, 1997, unrealized depreciation for book and federal income tax
purposes aggregated $13,000, all of which related to depreciated securities.
There was no difference between book and tax realized gains on securities
transactions for the six months ended March 31, 1997. During the six months
ended March 31, 1997, the fund realized, on a tax basis, a net capital gain of
$4,000 on sales of securities. The cost of portfolio securities for book and
federal income tax purposes was $161,857,000 at March 31, 1997.
3. The fee of $342,000 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% of such 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 $96,000 for the six months ended March 31, 1997.
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, 1997, distribution expenses under the Plan were
$47,000. As of March 31, 1997, accrued and unpaid distribution expenses were
$8,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $74,000.
Trustees who are unaffiliated with CRMC may elect to defer part or all of the
fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of March 31, 1997,
aggregate amounts deferred and earnings thereon were $14,000.
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. The fund made purchases and sales of investment securities of $469,051,000
and $449,393,000, respectively, during the six months ended March 31, 1997.
<TABLE>
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS
- ---------------------------------------- ---------------------- ----------- ----------- -----------
Six months Year ended September 30
ended ----------- ----------- ----------- -----------
3/31/97 /1/ 1996 1995 1994 1993
---------------------- ----------- ----------- -----------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
---------------------- ----------- ----------- -----------
Income from Investment Operations:
Net investment income .014 .029 .031 .020 .019
---------------------- ----------- ----------- -----------
Total income from investment operations .014 .029 .031 .020 .019
---------------------- ----------- ----------- -----------
Less Distributions:
Dividends from net investment income (.014) (.029) (.031) (.020) (.019)
---------------------- ----------- ----------- -----------
Total distributions (.014) (.029) (.031) (.020) (.019)
---------------------- ----------- ----------- -----------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total Return 1.40% /2/ 2.91% 3.14% 1.98% 1.90%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $164 $144 $150 $170 $121
Ratio of expenses to average net assets -
before fee waiver .39% /2/ .77% .75% .73% .79%
Ratio of expenses to average net assets -
after fee waiver .33% /2/ .65% .65% .65% .65%
Ratio of net income to average net assets 1.40% /2/ 2.88% 3.09% 1.99% 1.88%
/1/ Unaudited
/2/ Based on operations for the period
shown and, accordingly, not representative
of a full year's operations.
</TABLE>
[The American Funds Group(r)]
Shareholder Services
DOLLAR COST AVERAGING
MAKE MARKET FLUCTUATIONS WORK FOR YOU, NOT AGAINST YOU
If you're looking for an investment strategy that makes sense in a fluctuating
market, try dollar cost averaging. Not only does dollar cost averaging offer
the potential to reduce the average cost of shares over time, it also allows
you to diversify into other types of mutual funds - growth funds or
international, for instance - a little at a time.
To see how it works, let's look at two different types of markets.
<TABLE>
<CAPTION>
RISING MARKET FALLING MARKET
Regular Share Shares Regular Share Shares
Investment Price Acquired Investment Price Acquired
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$300 $5 60 $300 $25 12
300 15 20 300 15 20
300 10 30 300 20 15
Totals $900 110 Totals $900 47
Average share price $10.00 Average share price $20.00
AVERAGE COST THROUGH $8.18 AVERAGE COST THROUGH $19.15
DOLLAR COST AVERAGE ($900 DOLLAR COST AVERAGE ($900
divided by 110) divided by 47)
</TABLE>
As you can see, dollar cost averaging can reduce your investment cost in both
up and down markets.
It's easy to dollar cost average using two of our automated services - American
FundsLink(sm) and your exchange privilege. Both options, which are explained
more fully below and on the opposite page, accommodate automatic monthly or
quarterly investments into the American Fund(s) of your choice.
To initiate a dollar cost averaging program through automatic investments or
automatic fund transfers, simply call your financial adviser. Or contact
American Funds Service Company as indicated in the box at right.
SERVICES TO MATCH YOUR LIFESTYLE
We offer many free services designed to accommodate your needs.
AMERICAN FUNDSLINE(R) AND FUNDSLINE ONLINE(sm) - Handle transactions using your
computer or phone 24 hours a day. Obtain current prices and investment returns,
exchange shares between funds, redeem shares, check your share balances and
confirm your most recent transaction. Request duplicate statements and order
checks (phone only). All on your timetable. Just call 800/325-3590 or reach us
on the World Wide Web at www.americanfunds.com.
AMERICAN FUNDSLINK(sm) - Link your American Funds accounts with your bank
account. You can invest money directly from your bank account into your fund
account on either a systematic or on-demand basis. Or you can have fund
dividends or automatic fund withdrawals deposited directly into your bank
account for fast, convenient, worry-free banking.
OTHER AUTOMATIC TRANSACTIONS - You can reinvest dividends into the same fund or
another fund, make withdrawals, and exchange shares between funds - quarterly,
monthly or during the months you specify.
DIVIDEND AND CAPITAL GAIN OPTIONS - Use your dividend and capital gain
distributions to meet your changing needs. You may:
- - Automatically reinvest distributions back into the fund at no sales charge.
- - Cross-reinvest dividends into another fund at no sales charge for added
diversification. You can cross-reinvest if you have a balance of at least
$5,000 in the originating fund or meet the minimum initial investment for the
receiving fund.
- - Have dividends mailed or sent electronically to you or to someone else to
help meet your obligations.
EXCHANGE PRIVILEGES - When you and your investment adviser feel it's time to
adjust your portfolio to meet your changing investment goals, you can easily
exchange shares from one American Fund to another - usually without paying a
sales charge. Certain restrictions apply.* Please remember that fund exchanges
among many types of accounts constitute a sale and purchase for tax purposes.
OTHER SERVICES - Stay on top of your investments with account statements that
keep you abreast of the activity in your account, consolidated quarterly
statements to reduce paperwork if you have multiple accounts and year-end tax
reports that show the dividends and capital gain distributions paid to you
during the year.
The dollar cost averaging program described at left doesn't guarantee a profit
or protect you from loss, and its success is dependent on your willingness to
continue investing during periods of market weakness.
*If you are opening an account in a different fund, you must meet that fund's
minimum investment requirement. Investments in our money market funds - The
Cash Management Trust of America, The Tax-Exempt Money Fund of America and The
U.S. Treasury Money Fund of America - are purchased without a sales charge;
therefore, a sales charge generally will apply when exchanging shares from a
money market fund to another fund. If, however, the money market shares were
originally purchased in another American Fund that required a sales charge,
then later exchanged into our money market funds, the investment could be
exchanged into our other funds without incurring an additional sales charge.
When initiating an automatic exchange program from a money market fund, you
must have at least $5,000 in your money market fund or meet the minimum
investment requirement of the fund you are investing into.
FOR MORE COMPLETE INFORMATION ABOUT THESE SERVICES OR ABOUT ANY OF THE AMERICAN
FUNDS, INCLUDING CHARGES AND EXPENSES, PLEASE OBTAIN A PROSPECTUS FROM YOUR
FINANCIAL ADVISER OR PHONE AMERICAN FUNDS SERVICE COMPANY. PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THESE SERVICES ARE
SUBJECT TO CHANGE OR TERMINATION.
To talk to a Shareholder Services Representative, call toll-free from anywhere
in the U.S. (8 a.m. to 8 p.m. ET): 800/421-0180. Visit us at
www.americanfunds.com on the World Wide Web.
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 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
(Please write to the address nearest you.)
American Funds Service Company
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
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, 1997, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA CD/CG/3414
Lit. No. MMF-013-0597
[The American Funds Group(r)]
Printed on recycled paper
