[The American Funds Group(r)]
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, 1998
[illustration: piggy bank, baby carriage, house, coins, suitcase]
Semi-Annual Report
THE CASH MANAGEMENT TRUST OF AMERICA
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
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
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.
The Cash Management Trust of America, The U.S. Treasury Money Fund of America
and the Tax-Exempt Money Fund of America are three of the 28 funds in The
American Funds Group,(r) managed by Capital Research and Management Company.
Since 1931, Capital has invested with a long-term focus based on thorough
research and attention to risk.
For current yields, please call American FundsLine(r) at 800/325-3590; press 1
for yield information.
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.
FELLOW SHAREHOLDERS
The six-month period ended March 31 was marked by an unusual combination of
strong economic growth and subdued inflation - an environment that enabled your
money market fund to provide a stable return that outpaced the rise
in consumer prices by a considerable margin.
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 2.5% for the
six months (5.0% annualized) with dividends reinvested.
THE U.S. TREASURY MONEY FUND OF AMERICA generated an income return of 2.3%
(4.6% annualized) with dividends reinvested. This is exempt from state and
local income taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income
return of 1.5% (3.0% annualized) including reinvested dividends. Investors in
the 39.6% federal tax bracket would have had to earn a taxable return of 2.5%
(5.0% annualized) to match that of the fund.
STRONG GROWTH AND MILD INFLATION
A number of factors contributed to the economy's sustained growth. Rising wages
and employment, combined with exceptional stock market returns, raised consumer
confidence and sparked an increase in spending. Businesses responded to the
growing demand by expanding their production capacity, adding to their
investments in equipment and facilities. This, in turn, stimulated demand in
technology and real estate.
Despite this robust activity, inflation remained surprisingly mild over the six
months, with prices rising only 0.43% (0.87% annualized) as measured by the
overall Consumer Price Index. Increases in labor productivity enabled
businesses to maintain profit margins without raising prices, and a slump in
world crude oil prices held down the prices of petroleum and other energy
products, which helped keep inflation at bay. The rising U.S. dollar and
turmoil in Asian financial markets also played a role, making many imported
goods cheaper and providing an incentive to U.S. businesses to keep their
prices low.
SHORT-TERM YIELDS HOLD STEADY
Faced with evidence of continued low inflation, the Federal Reserve maintained
the federal funds rate (the rate banks charge each other for overnight loans)
at 5.5%. As a result, your money market fund's yield remained relatively stable
throughout the six-month period, as you can see in the far right portion of the
chart below.
SEVEN-DAY ANNUALIZED RATES/1/
For the quarters ended March 31, 1994 <UNDEF> March 31, 1998
[begin mountain chart]
<TABLE>
<CAPTION>
The Tax-Exempt The Tax-Exempt
Money Fund of Money Fund of
The Cash The U.S. Treasury America (taxable America
Management Trust Money Fund of equivalent (federally
Date of America America /2/ yield)/3/ tax-free)
<S> <C> <C> <C> <C>
March 1994 2.80 2.56 2.76 1.67
April 1994 3.02 2.82 3.43 2.07
May 1994 3.45 2.99 3.63 2.19
June 1994 3.64 3.20 3.49 2.11
July 1994 3.84 3.46 3.61 2.18
August 1994 3.98 3.61 4.01 2.42
September 1994 4.17 3.86 4.24 2.56
October 1994 4.40 4.02 4.40 2.66
November 1994 4.63 4.33 4.90 2.96
December 1994 5.34 4.78 6.21 3.75
January 1995 5.35 4.85 4.88 2.95
February 1995 5.46 4.98 5.71 3.45
March 1995 5.57 5.15 5.51 3.33
April 1995 5.54 5.13 5.86 3.54
May 1995 5.52 5.07 5.76 3.48
June 1995 5.44 5.03 5.20 3.14
July 1995 5.31 4.98 4.64 2.80
August 1995 5.29 4.86 4.97 3.00
September 1995 5.26 4.86 5.28 3.19
October 1995 5.27 4.85 5.15 3.11
November 1995 5.30 4.75 5.17 3.12
December 1995 5.14 4.68 5.56 3.36
January 1996 5.08 4.62 4.55 2.75
February 1996 4.78 4.43 4.44 2.68
March 1996 4.77 4.41 4.42 2.67
April 1996 4.89 4.53 4.78 2.89
May 1996 4.79 4.39 4.85 2.93
June 1996 4.77 4.47 4.64 2.80
July 1996 4.80 4.53 4.64 2.80
August 1996 4.76 4.53 4.67 2.82
September 1996 4.82 4.57 4.85 2.93
October 1996 4.75 4.50 4.65 2.81
November 1996 4.72 4.44 4.77 2.88
December 1996 4.87 4.38 5.02 3.03
January 1997 4.77 4.39 4.64 2.80
February 1997 4.63 4.40 4.55 2.75
March 1997 4.85 4.69 4.54 2.74
April 1997 5.06 4.86 5.15 3.11
May 1997 5.11 4.87 5.12 3.09
June 1997 5.13 4.76 5.18 3.13
July 1997 5.05 4.78 5.03 3.04
August 1997 5.04 4.67 4.85 2.93
September 1997 5.07 4.45 5.15 3.11
October 1997 5.03 4.62 5.1 3.08
November 1997 4.91 4.66 5.15 3.11
December 1997 5.36 4.7 5.3 3.2
January 1998 5.03 4.39 4.87 2.94
February 1998 4.95 4.43 4.57 2.76
March 1998 5.03 4.57 4.83 2.92
</TABLE>
[end mountain chart]
The Cash Management Trust of America (CMTA)
The U.S. Treasury Money Fund of America/2/ (CTRS)
The Tax-Exempt Money Fund of America (CTEX) (federally tax-free)/3/
The Tax-Exempt Money Fund of America (CTEX) (taxable equivalent yield)/4/
/1/Equivalent to Securities and Exchange Commission yield.
/2/Since income paid by The U.S. Treasury Money Fund of America is exempt from
state and local taxes in most states, the fund's taxable equivalent yield would
be higher than the rates indicated in the chart.
/3/Results for The Tax-Exempt Money Fund of America reflect the effect of a
partial management fee waiver. Without the waiver, results would have been
lower during certain periods.
/4/Represents the fund's taxable equivalent yield calculated at the maximum
39.6% federal tax rate.
Three-month Treasury bills, considered a benchmark for short-term securities,
experienced similar stability, lingering around 5% throughout the six-month
period. Expectations of persistent low inflation, however, had a dampening
effect on long-term yields. The 30-year Treasury bond, which last October
hovered just below 6.5%, slid to 5.7% in January and, after a few sporadic
increases, paused at 5.9% on March 31 - less than one percentage point higher
than the yield on three-month Treasuries. This convergence of long- and
short-term rates benefits short-term investors who are currently enjoying a
comparatively high yield for considerably less volatility risk.
CONVENIENT ACCESS AND A REASONABLE RETURN
Where short- and long-term yields will head in the next few months is
uncertain. There are forces at work that could move interest rates in either
direction. Fortunately, your fund can play a beneficial role in your investment
plan regardless of what the financial markets are doing. Added to a portfolio
that includes stock and bond funds, your money market fund can provide
stability as well as a reasonable return. In addition, it can serve as an
excellent place to invest money earmarked for emergencies, upcoming bills, or
investment programs involving regular or automatic exchanges into equity or
fixed-income funds.
Thank you for selecting The American Funds Group money market funds for your
investment portfolio. We look forward to reporting to you again in six months.
Sincerely,
[/s/ Paul G. Haaga, Jr.]
Paul G. Haaga, Jr.
Chairman of the Boards
[/s/ Abner D. Goldstine]
Abner D. Goldstine
President
May 15, 1998
<TABLE>
The Cash Management Trust of America Unaudited
Investment Portfolio
March 31, 1998
Principal Market
Yield at Amount Value
Acquisition (000) (000)
<S> <C> <C> <C>
Bankers' Acceptances - .79%
BankAmerica Corp.
April 28, 1998 5.52% 30,000 29,872
---------
Total Bankers' Acceptances 29,872
Certificates of Deposit - 3.31%
Canadian Imperial Bank of Commerce
5.56% May 1, 1998 17,000 17,000
5.56% May 1, 1998 8,000 8,000
Morgan Guaranty Trust Co. of New York
5.510% April 9, 1998 50,000 50,000
Svenska Handelsbanken
5.56% April 13, 1998 25,000 25,000
Westdeutsche Landesbank Girozentrale
5.53% April 3, 1998 25,000 25,000
---------
Total Certificates of Deposit 125,000
Commercial Paper - 62.65%
Abbott Laboratories
April 3, 1998 15,000 14,993
April 6, 1998 5,000 4,995
April 14, 1998 15,000 14,968
ABN-AMRO North America Finance Inc.
May 1, 1998 5.54 25,000 24,882
AIG Funding Inc.
April 21, 1998 25,000 24,920
Albertson's, Inc.
April 1, 1998 5,000 4,999
April 16, 1998 25,000 24,939
American Express Credit Corp.
April 7, 1998 30,000 29,968
April 16, 1998 10,000 9,975
May 6, 1998 25,000 24,862
Ameritech Corp.
April 8, 1998 12,500 12,485
April 9, 1998 17,500 17,476
Amoco Co.
April 6, 1998 5,000 4,996
April 20, 1998 25,000 24,925
Anheuser-Busch Cos. Inc.
April 3, 1998 22,000 21,990
Associates Corp. of North America
April 1, 1998 50,000 49,992
Atlantic Richfield Co.
May 7,1998 30,000 29,829
AT&T Corp.
April 2, 1998 25,000 24,992
Avco Financial Services Inc.
April 13, 1998 14,000 13,973
April 24, 1998 15,000 14,946
Baltimore Gas and Electric Co.
April 6, 1998 5,500 5,495
April 13, 1998 9,500 9,481
Bank of Montreal
April 14, 1998 30,000 29,936
Barclays U.S. Funding Corp.
April 13, 1998 25,000 24,951
Bayer Corp.
May 5, 1998(1) 25,000 24,868
Bell Atlantic Financial Services
April 22, 1998 25,000 24,916
BellSouth Telecommunications Inc.
April 21, 1998 11,000 10,965
May 12, 1998 25,000 24,840
British Telecommunications PLC
April 21, 1998 25,000 24,921
Caisse d'Amortissement de la Dette Sociale
April 24, 1998 20,000 19,927
Campbell Soup Co.
April 2, 1998(1) 25,000 24,992
Canadian Wheat Board
April 9, 1998 30,000 29,959
Chevron Transport Corp.
April 20, 1998 (1) 10,000 9,970
April 23, 1998 (1) 10,000 9,965
CIT Group Holdings Inc.
April 22, 1998 30,000 29,900
Coca Cola Co.
April 15, 1998 35,000 34,921
Colgate-Palmolive Co.
May 1, 1998 (1) 30,000 29,858
Commercial Credit Co.
April 3, 1998 14,000 13,994
April 7, 1998 15,000 14,984
Commerzbank U.S. Finance Inc.
May 5, 1998 25,000 24,866
Commonwealth Bank of Australia
April 1, 1998 25,000 24,996
Consolidated Natural Gas Co.
April 20, 1998 25,000 24,924
John Deere Capital Corp.
May 4, 1998 30,000 29,844
Deutsche Bank Financial Inc.
April 15, 1998 25,000 24,943
Diageo Capital PLC
May 6, 1998 (1) 25,000 24,862
Walt Disney Co.
April 2, 1998 25,000 24,993
Dresdner U.S. Finance Inc.
April 3, 1998 25,000 24,989
E.I. du Pont de Nemours and Co.
April 9, 1998 10,000 9,986
May 7, 1998 20,000 19,887
Duke Energy Corp.
April 27, 1998 30,000 29,877
Electricite de France
April 8, 1998 5.53 25,000 24,969
Electronic Data Systems Corp.
April 7, 1998(1) 30,000 29,968
Emerson Electric Co.
April 23, 1998 29,500 29,397
Exxon Imperial U.S. Inc.
April 1, 1998(1) 25,000 24,996
Ford Motor Credit Co.
April 22, 1998 40,000 39,865
April 23, 1998 35,000 34,877
May 22, 1998 25,000 24,801
France Telecom
April 9, 1998 16,703 16,680
May 11, 1998 20,000 19,875
Gannett Co.
April 7, 1998(1) 25,000 24,974
Gaz de France
April 17, 1998 20,000 19,948
General Electric Capital Corp.
April 1, 1998 40,000 39,993
April 7, 1998 15,000 14,984
May 11, 1998 20,000 19,875
May 19, 1998 25,000 24,813
General Motors Acceptance Corp.
April 8, 1998 25,000 24,970
Gillette Co.
April 16, 1998(1) 30,000 29,927
Glaxo Wellcome PLC
April 27, 1998(1) 25,000 24,896
Halifax PLC
April 9, 1998 25,000 24,966
Harvard University
April 28, 1998 20,000 19,914
H.J. Heinz Co.
April 2, 1998 15,000 14,996
April 30, 1998 15,000 14,931
IBM Credit Corp.
April 22, 1998 25,000 24,916
May 4, 1998 25,000 24,870
International Lease Finance Corp.
April 14, 1998 25,000 24,947
Kellogg Co.
April 17, 1998 25,000 24,935
Kimberly-Clark Corp.
April 6, 1998 (1) 7,300 7,293
April 30, 1998 (1) 25,000 24,885
Lucent Technologies Inc.
May 8, 1998 30,000 29,826
McDonald's Corp.
April 13, 1998 (1) 21,000 20,958
Minnesota Mining & Manufacturing Co.
April 29, 1998 30,000 29,867
Monsanto Co.
April 2, 1998 15,000 14,995
April 14, 1998 15,000 14,968
Motorola Credit Corp.
April 6, 1998 27,000 26,975
National Australia Funding (Deleware) Inc.
April 13, 1998 5,000 4,990
May 4, 1998 25,000 24,870
Novartis Finance Corp.
April 23, 1998 20,000 19,930
Pfizer Inc.
April 6, 1998(1) 15,000 14,986
April 8, 1998(1) 25,000 24,970
Pitney Bowes Credit Corp.
April 2, 1998 10,000 9,997
April 24, 1998 20,000 19,927
Procter & Gamble Co.
April 13, 1998 25,000 24,950
Reed Elsevier, Inc.
May 11, 1998 (1) 25,000 24,843
Repsol International Finance B.V.
April 27, 1998 30,000 29,876
Sara Lee Corp.
April 27, 1998 30,000 29,876
SBC Communications Inc.
April 14, 1998 (1) 35,000 34,925
Shell Oil Co.
April 28, 1998 30,000 29,872
Sherwin-Williams Company
April 6, 1998 (1) 4,000 3,996
April 20, 1998 (1) 6,500 6,480
April 21, 1998 (1) 4,000 3,987
St. Paul Companies, Inc.
April 3, 1998 (1) 10,000 9,996
April 6, 1998 (1) 10,000 9,991
Telstra Corp. Ltd.
April 21, 1998 25,000 24,920
Toronto-Dominion Holdings USA Inc.
April 30, 1998 30,000 29,863
UBS Finance (Delaware) Inc.
April 15, 1998 25,000 24,943
United Parcel Service of America
April 24, 1998 30,000 29,890
Wool International
April 2, 1998 7,000 6,998
April 6, 1998 10,000 9,991
Xerox Capital (Europe) PLC
April 14, 1998 25,000 24,946
Yale University
April 20, 1998 12,000 11,964
---------
Total Commercial Paper 2,364,142
Federal Agency Discount Notes - 31.08%
Fannie Mae
April 13, 1998 50,000 49,901
April 20, 1998 62,000 61,812
April 24, 1998 38,600 38,459
May 8, 1998 55,000 54,685
Federal Home Loan Bank
April 22, 1998 109,350 108,977
May 1, 1998 97,100 96,647
May 22, 1998 35,000 34,726
May 29, 1998 75,000 74,330
Freddie Mac
April 1, 1998 50,000 49,993
April 3, 1998 75,000 74,966
April 6, 1998 18,838 18,821
April 7, 1998 28,000 27,970
April 15, 1998 25,000 24,943
April 23, 1998 45,000 44,844
April 24, 1998 40,000 39,856
April 27, 1998 50,000 49,796
April 30, 1998 50,000 49,773
May 8, 1998 61,262 60,910
May 13, 1998 167,800 166,704
International Bank Reconstruction and Development
April 17, 1998 45,000 44,884
---------
Total Federal Agency Discount Notes 1,172,997
Other - 0.66%
Canada Bills
April 1, 1998 25,000 24,996
---------
Total Other 24,996
U.S. Treasury Securities - 1.32%
U.S. Treasury bills 4/16/98 50,000 49,881
---------
Total U.S. Treasury Securities 49,881
Total Investment Securities
(Cost: $3,766,893,000) 3,766,888
Excess of cash and receivables over
payables 7,021
---------
Net Assets $3,773,909
=========
(1)Restricted securities that can be resold only to
institutional investors. In practice, these securities
are as liquid as unrestricted securities in the
portfolio.
See Notes to Financial Statements.
</TABLE>
<TABLE>
Cash Management Trust of America Unaudited
Financial Statements
- ---------------------------------------- ------------------------------
Statement of Assets and Liabilities
at March 31, 1998 (dollars in thousands)
- ---------------------------------------- ----------------- -----------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $3,766,893) $3,766,888
Cash 3,489
Receivables for--
Sales of fund's shares $39,738
Accrued interest 754 40,492
-----------------------------
3,810,869
Liabilities:
Payables for--
Repurchases of fund's shares 34,646
Dividends payable 1,161
Management services 926
Accrued expenses 227 36,960
-----------------------------
Net Assets at March 31, 1998 -
Equivalent to $1.00 per share on
3,773,909,356 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $3,773,909
===========
Statement of Operations
for the six months ended March 31, 1998 (dollars in thousands)
-----------------------------
Investment Income:
Income:
Interest $ 102,653
Expenses:
Management services fee $5,273
Distribution expenses 1,402
Transfer agent fee 2,687
Reports to shareholders 106
Registration statement and prospectus 220
Postage, stationery and supplies 703
Trustees' fees 21
Auditing and legal fees 44
Custodian fee 12
Taxes other than federal income tax 40
Other expense 25 10,533
-----------------------------
Net investment income 92,120
-----------
Change in Unrealized Appreciation (Depreciation)
on Investments:
Net realized gain 0
Net unrealized appreciation (depreciation)
on investments:
Beginning of period 19
End of period (5)
-------------------
Net change in unrealized appreciation (depreciation)
on investments (24)
------------
Net unrealized appreciation
(depreciation) on investments (24)
-----------
Net Increase in Net Assets
Resulting from Operations $92,096
============
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- -----------------------------
Six months Year ended
ended
3/31/98 * 9/30/97
Operations: -----------------------------
Net investment income $ 92,120 $ 173,538
Net realized gain on investments 0 0
Net change in unrealized
appreciation (depreciation) on investments (24) 10
-----------------------------
Net increase in net assets
resulting from operations 92,096 173,548
-----------------------------
Dividends Paid to Shareholders (92,116) (173,537)
-----------------------------
Capital Share Transactions:
Proceeds from shares sold:
5,705,269,866 and 11,147,992,254
shares, respectively 5,705,270 11,147,992
Proceeds from shares issued in
reinvestment of net investment income
dividends:
84,058,333 and 158,678,153 shares,
respectively 84,058 158,678
Cost of shares repurchased:
5,542,056,669 and 11,084,144,678
shares, respectively (5,542,057) (11,084,145)
-----------------------------
Net increase in net assets resulting
from capital share transactions 247,271 222,525
-----------------------------
Total Increase in Net Assets 247,251 222,536
Net Assets:
Beginning of period 3,526,658 3,304,122
-----------------------------
End of period $3,773,909 $3,526,658
==============================
*Unaudited
See Notes to Financial Statements
</TABLE>
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.
Securities having 60 days or less to maturity are amortized to maturity based
on their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. All other fixed-income
securities are valued at prices obtained from a pricing service, when such
prices are available; however, in circumstances where the investment adviser
deems it appropriate to do so, such securities will be valued at the mean
quoted bid and asked prices or at prices for securities of comparable maturity,
quality and type. Securities and assets for which representative market
quotations are not readily available are valued at fair value as determined in
good faith by a committee appointed by the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Interest income
is reported on the accrual basis. Discounts and premiums on securities
purchased are amortized. Dividends to shareholders 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 taxable income to its shareholders. Therefore, no
federal income tax provision is required.
As of March 31, 1998, unrealized appreciation for book and federal income tax
purposes aggregated $5,000, of which $5,000 related to appreciated securities
and $10,000 related to depreciated securities. The cost of portfolio securities
for book and federal income tax purposes was $3,766,893,000 at March 31, 1998.
3. The fee of $5,273,000 for management services was incurred pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.32% 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, 1998, distribution expenses under the plan were
$1,402,000. As of March 31, 1998, accrued and unpaid distribution expenses
were $167,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,687,000.
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,
1998, aggregate amounts deferred and earnings thereon were $46,000.
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
$26,659,495,000 and $26,506,307,000 respectively, during the six months ended
March 31, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $12,000 was paid by these credits rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
- ------------------------------ ----------------- -------- ------ -------- -------- --------
Six Months Year Ended September 30
----------------- -------- ------ -------- -------- --------
ended 3/31/98 /1/ 1997 1996 1995 1994 1993
----------------- -------- ------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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 .025 .049 .050 .052 .031 .025
Total income from investment----------------- -------- -------- -------- -------- --------
operations .025 .049 .050 .052 .031 .025
----------------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income (0.025) (0.049) (0.050) (0.052) (0.031) (0.025)
----------------- -------- -------- -------- -------- --------
Total distributions (0.025) (0.049) (0.050) (0.052) (0.031) (0.025)
----------------- ------- -------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=============================================================================
Total Return 2.55% /2/ 5.03% 5.06% 5.34% 3.10% 2.57%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $3,774 $3,527 $3,304 $2,996 $2,738 $1,940
Ratio of expenses to average
net assets .29% /2/ .57% .60% .60% .68% .65%
Ratio of net income to
average net assets 2.53% /2/ 4.93% 4.95% 5.21% 3.14% 2.57%
/1/ Unaudited
/2/ Based on operations for the
period shown and, accordingly,
not representative of a full year.
</TABLE>
<TABLE>
The U.S. Treasury Money Fund of America
Investment Portfolio Unaudited
March 31, 1998
Principal Market
Yield at Amount Value
Acquisition (000) (000)
- ------------------------------------------------ ------------- ------- -------------
<S> <C> <C> <C>
U.S. Treasury Securities - 97.00%
U.S. Treasury bills 4/2/98 5.01% - 5.02% $45,800 $45,788
U.S. Treasury bills 4/9/98 5.04% - 5.09% 4,850 4,843
U.S. Treasury bills 4/16/98 5.07% - 5.34% 40,780 40,694
U.S. Treasury bills 4/23/98 5.03% - 5.33% 93,670 93,372
U.S. Treasury bills 4/30/98 5.07% - 5.30% 33,025 32,886
U.S. Treasury bills 5/7/98 5.09% 29,900 29,753
U.S. Treasury bills 5/21/98 5.11% 27,800 27,609
U.S. Treasury bills 5/28/98 5.08% 4,390 4,356
U.S. Treasury bills 6/25/98 5.12% 1,590 1,571
-------------
Total Investment Securities
(cost $280,841,000) 280,872
Excess of cash and receivables 8,676
over payables -------------
Net Assets $289,548
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
U.S. Treasury Money Fund of America
Financial Statements Unaudited
- ---------------------------------------------------- ------------
Statement of Assets and Liabilities
at March 31, 1998 (dollars in thousands)
- ---------------------------------------------------- ------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $280,841) $280,872
Cash 421
Receivables for --
Sales of fund's shares 11,693
------------
292,986
Liabilities:
Payables for --
Repurchases of fund's shares $3,275
Dividends payable 58
Management services 71
Accrued expenses 34 3,438
------------ ------------
Net Assets at March 31, 1998 --
Equivalent to $1.00 per share on
289,520,618 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $289,548
=============
Statement of Operations Unaudited
for the six months ended March 31, 1998 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 7,332
Expenses:
Management services fee $425
Distribution expenses 138
Transfer agent fee 165
Reports to shareholders 10
Registration statement and prospectus 23
Postage, stationery and supplies 15
Trustees' fees 8
Auditing and legal fees 29
Custodian fee 3
Taxes other than federal income tax 3 819
------------
819
Reimbursement of expenses 0
------------ ------------
Net investment income 6,513
------------
Change in Unrealized Appreciation
on Investments:
Net unrealized
appreciation on investments:
Beginning of period 78
End of period 31
------------
Net change in unrealized appreciation
on investments (47)
------------
Net Increase in Net Assets Resulting
from Operations $6,466
============
Statement of Changes in Net
Assets (dollars in thousands)
- ----------------------------------------------------- -------------
Six months Year ended
ended
3/31/98 * 9/30/97
Operations: ------------- -------------
Net investment income 6,513 $ 12,404
Net unrealized appreciation (depreciation)
on investments (47) 55
------------- -------------
Net increase in net assets
resulting from operations 6,466 12,459
------------- -------------
Dividends Paid to Shareholders (6,517) (12,403)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
299,220,347 and 422,021,875
shares, respectively 299,220 422,022
Proceeds from shares issued in
reinvestment of net investment income
dividends 5,979,644 and
11,622,401 shares, respectively 5,980 11,622
Cost of shares repurchased:
294,956,366 and 410,634,115
shares, respectively (294,956) (410,155)
------------- -------------
Net increase in net assets resulting
from capital share transactions 10,244 23,489
------------- -------------
Total Increase in Net Assets 10,193 23,545
Net Assets:
Beginning of period 279,355 255,810
------------- -------------
End of period $289,548 $279,355
============= =============
* Unaudited
See Notes to Financial Statements
</TABLE>.
Unaudited
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.
Securities having 60 days or less to maturity are amortized to maturity
based on their cost if acquired within 60 days of maturity or, if already held
on the 60th day, based on the value determined on the 61st day. All other
fixed-income securities are valued at prices obtained from a pricing service,
when such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean quoted bid and asked prices or at prices for securities of comparable
maturity, quality and type. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the Board of Trustees.
As is customary in the mutual fund industry, securities transactions
are accounted for on the date the securities are purchased or sold. Interest
income is reported on the accrual basis. Discounts and premiums on securities
purchased are amortized. Dividends to shareholders 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 taxable income to its shareholders. Therefore, no
federal income tax provision is required.
As of March 31, 1998, unrealized appreciation on investments for book and
federal income tax purposes aggregated $31,000, of which $32,000 related to
appreciated securities and $1,000 related to depreciated securities. The cost
of portfolio securities for book and federal income tax purposes was
$280,841,000 at March 31, 1998.
3. The fee of $425,000 for management services was incurred pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% of the first $800 million of average net assets and
0.285% of such assets in excess of $800 million.
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, 1998, distribution expenses under the Plan were
$138,000. As of March 31, 1998, accrued and unpaid distribution expenses were
$20,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $165,000.
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, 1998,
aggregate amounts deferred and earnings thereon were $22,000.
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, including maturities, of investment
securities of $589,496,000 and $594,383,000, respectively, during the six
months ended March 31, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $3,000 was paid by these credits rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
- ------------------------------ -------- -------- -------- -------- ----------------
Six months Year endedSeptember 30
ended -------- -------- -------- ----------------
3/31/98 /1/ 1997 1996 1995 1994 1993
-------- -------- -------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
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 .023 .046 .046 .048 .028 .025
Total income from investment -------- -------- -------- -------- ----------------
operations .023 .046 .046 .048 .028 .025
-------- -------- -------- -------- ----------------
Less Distributions:
Dividends from net investment
income (.023) (.046) (.046) (.048) (.028) (.025)
-------- -------- -------- -------- ----------------
Total distributions (.023) (.046) (.046) (.048) (.028) (.025)
-------- -------- -------- -------- ----------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ================
Total Return 2.32% /2/ 4.71% 4.66% 4.89% 2.89% 2.49%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $290 $279 $256 $231 $199 $140
Ratio of expenses to average
net assets .29% /2/ .53% .65% .67% .67% .61%
Ratio of net income to
average net assets 2.29% /2/ 4.61% 4.53% 4.79% 2.91% 2.43%
/1/Unaudited
/2/Based on operations for the
period shown and, accordingly,
not representative of a full year.
</TABLE>
<TABLE>
The Tax-Exempt Money Fund of America
Investment Portfolio, March 31, 1998 Principal Market
Yield at Amount Value
Acquisition (000) (000)
Municipal Securities
- -------------------------------------------------------- ------------- ---------- ----------
<S> <C> <C> <C>
Alabama - 1.26%
Port City Medical Clinic Board of Mobile 3.55% $2,400 $2,400
Revenue Bonds (Mobile Infirmary
Association), Series 1992A, TECP,
3.55% 5/19/98
Alaska - 5.88%
Housing Finance Corporation General
Purpose Bonds, 1991 Series C, VRDN,
3.65%, 4/7/98* 3.65 4,100 4,100
City of Valdez, Marine Terminal Revenue
Refunding Bonds (ARCO Transportation
Alaska, Inc. Project), 1994 Series A, TECP:
3.30% 5/6/98 3.30 3,600 3,600
3.25% 5/8/98 3.25 2,000 2,000
3.30% 5/8/98 3.30 1,500 1,500
Arizona - 4.52%
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% 4/7/98* 3.45 1,000 1,000
Salt River Project Agricultural Improvement
and Power District, Promissory Notes, TECP:
Series G, 3.45% 5/4/98 3.45 3,000 3,000
Series G, 3.40% 5/6/98 3.40 3,000 3,000
Series G, 3.40% 5/7/98 3.40 1,600 1,600
California - 5.08%
Revenue Anticipation Notes,
1997 Series A, 4.50% 6/30/98 3.55 1,520 1,523
County of Los Angeles, 1997-98 Tax and Revenue
Anticipation Notes, Series A, 4.50% 6/30/98 3.66 8,140 8,153
Colorado - 2.94%
Tax and Revenue Anticipation Notes,
Series 1997A, 4.50% 6/26/98 3.84 1,500 1,502
City and County of Denver, Department of Aviation,
Airport System Subordinate Revenue Bonds, AMT:
Series 1997A, 3.25% 4/1/98 3.25 2,100 2,100
Series 1997A, 3.25% 4/2/98 3.25 2,000 2,000
Connecticut - 1.58%
Health and Educational Facilities Authority,
Revenue Bonds, Yale University, Series S, TECP,
3.30% 4/3/98 3.30 1,500 1,500
Development Authority Pollution Control Revenue
Refunding Bonds (The Connecticut Light and Power
Company Project), Series 1993B, VRDN, AMT,
3.65% 4/7/98 3.65 1,500 1,500
Hawaii - 3.83%
City and County of Honolulu General Obligation
Bond Anticipation Notes, TECP:
3.25% 4/8/98 3.25 3,300 3,300
3.15% 5/5/98 3.15 3,000 3,000
3.40% 5/5/98 3.40 1,000 1,000
Illinois - 1.05%
Health Facilities Authority Revenue Bonds
(Victory Health Services), Series 1997B,
TECP, 3.35% 5/14/98 3.35 2,000 2,000
Kansas - 3.10%
City of Burlington Pollution Control Refunding
and Improvement Revenue Bonds (Kansas City
Power & Light Co. Project), TECP:
1985 Series A, 3.50% 4/3/98 3.50 3,300 3,300
1987 Series A, 3.40% 4/6/98 3.40 1,600 1,600
1987 Series A, 3.35% 5/11/98 3.35 1,000 1,000
Kentucky - 3.04%
Pendleton County, Multi-County Lease
Revenue Bonds (Kentucky Association of
Counties Leasing Trust Program), Series
1989, Money Market Municipal, TECP:
3.45% 4/2/98 3.45 3,000 3,000
3.20% 5/8/98 3.20 2,785 2,785
Louisiana - 2.94%
Parish of Ascension, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Borden, Inc. Project), Series 1992,
VRDN, 3.65% 4/7/98* 3.65 4,200 4,200
Lake Charles Harbor and Terminal District,
Flexible Demand Port Facilities Revenue
Bonds (CITGO Petroleum Corp. Project),
Series 1984, VRDN, 3.70% 4/7/98* 3.70 1,400 1,400
Maryland - 4.52%
Anne Arundel County Economic Development
Revenue Bonds (Baltimore Gas and Electric
Co. Project), TECP:
Series 1985, 3.25% 5/4/98 3.25 1,000 1,000
Series 1988, AMT, 3.65% 5/20/98 3.65 4,000 4,000
Montgomery County Consolidated Commercial Paper
Bond Anticipation Notes, Series 1995, TECP,
3.25% 4/6/98 3.25 3,600 3,600
Michigan - 2.85%
Full Faith and Credit General Obligation Notes,
4.50% 9/30/98 3.52 5,400 5,421
Missouri - 4.73%
Higher Education Loan Authority, Adjustable
Rate Demand Student Loan Revenue Bonds, VRDN, AMT:
Series 1990A, 3.80% 4/7/98* 3.80 1,600 1,600
Series 1990B, 3.80% 4/7/98* 3.80 1,000 1,000
City of Columbia, Special Obligation
Insurance Reserve Bonds, Series 1988A,
VRDN, 3.70% 4/7/98* 3.70 1,000 1,000
City of Independence, Variable Rate Demand
Water Utility Revenue Bonds, Series 1986, TECP:
3.25% 4/9/98 3.25 4,000 4,000
3.35% 5/14/98 3.35 1,400 1,400
New Mexico - 4.21%
1997-98 State Tax and Revenue Anticipation Notes,
Subordinate Series 1997A:
4.50% 6/30/98 3.68 6,000 6,009
4.50% 6/30/98 3.71 2,000 2,004
North Carolina - 6.14%
Educational Facilities Finance Agency, Revenue
Bonds (Duke University Project), VRDN:
Series 1992A, 3.60% 4/7/98* 3.60 2,800 2,800
Series 1991D, 3.60% 4/7/98* 3.60 1,800 1,800
Eastern Municipal Power Agency, TECP,
3.15% 4/2/98 3.15 2,600 2,600
Municipal Power Agency No. 1, Catawba Electric
Revenue Bonds, TECP, MBIA Insured:
3.50% 4/2/98 3.50 1,500 1,500
3.30% 5/4/98 3.30 2,000 2,000
3.30% 5/13/98 3.30 1,000 1,000
Ohio - 2.47%
Water Development Authority, Pollution Control
Revenue Bonds, Series 1988 (Duquesne Light Co.
Project), TECP, AMT:
3.30% 4/27/98 3.30 2,500 2,500
3.35% 5/7/98 3.35 1,000 1,000
Hamilton County Hospital Facilites Revenue
Bonds, Bethesda Hospital Inc., Series 1995, VRDN,
3.55% 4/7/98* 3.55 1,200 1,200
Oklahoma - 0.63%
Oklahoma City Industrial & Cultural Facilities Trust,
Health Facilities Revenue Bonds (St. Anthony
Hospital Project), SSM Health Care Obligated Group,
Series 1990A, VRDN, 3.45% 4/7/98* 3.45 1,200 1,200
Pennsylvania - 13.74%
Tax Anticipation Notes, 4.50% 6/30/98 3.65 1,600 1,603
Higher Education Assistance Agency Student Loan
Adjustable Rate Revenue Bonds, 1997 Series A,
VRDN, AMT, 3.80% 4/7/98* 3.80 2,000 2,000
Allegheny County Industrial Development
Authority, Customized Purchase Environmental
Improvement Revenue Refunding Bonds (United
States Steel Corp. Project), Series 1986, TECP:
3.40% 4/1/98 3.40 1,100 1,100
3.40% 4/6/98 3.40 1,000 1,000
3.20% 5/7/98 3.20 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% 4/3/98 3.20 2,000 2,000
Carbon County Industrial Development Authority,
Resource Recovery Revenue Bonds (Panther Creek
Partners Project), 1990 Series B, TECP, AMT,
3.35% 5/11/98 3.35 1,250 1,250
Delaware County Industrial Development Authority
Solid Waste Revenue Bonds (Scott Paper Co. Project),
Series 1984D, VRDN, 3.65% 4/7/98* 3.65 1,000 1,000
Delaware Valley Regional Finance Authority,
Adjustable Rate Local Government Revenue Bonds,
Series 1985C, 3.65% 4/7/98* 3.65 1,100 1,100
Montgomery County Industrial Development Authority
Pollution Control Revenue Refunding Bonds (PECO
Energy Co. Project), 1994 Series A, TECP:
3.05% 4/3/98 3.05 2,500 2,500
3.20% 4/22/98 3.20 1,500 1,500
School District of Philadelphia, Tax
and Revenue Anticipation Notes,
Series of 1997-1998, 4.50% 6/30/98 3.60 7,100 7,111
Venango Industrial Development Authority
Resource Recovery Revenue Bonds (Scrubgrass
Project), Series A, TECP, AMT, 3.45% 4/1/98 3.45 3,000 3,000
Texas - 12.10%
Tax and Revenue Anticipation Notes,
Series 1997A, 4.75% 8/31/98 3.53 8,200 8,236
City of Austin (Travis and Williamson Counties),
Combined Utility Systems Notes, Series A, TECP:
3.50% 4/1/98 3.50 2,000 2,000
3.25% 4/7/98 3.25 1,100 1,100
3.40% 5/1/98 3.40 1,000 1,000
3.30% 5/12/98 3.30 3,600 3,600
Brazos Higher Education Authority Inc. Student Loan
Revenue Bonds, Series 1993B-1, VRDN, AMT,
3.75% 4/7/98* 3.75 1,000 1,000
Harris County General Obligation Notes,
Series A, TECP, 3.25% 5/1/98 4.20 1,800 1,800
City of Houston, Tax and Revenue Anticipation
Notes, Series 1997, 4.50% 6/30/98 3.63 4,300 4,307
Utah - 3.47%
Board of Regents, Student Loan Revenue Bonds, 1988
Series C, AMBAC Insured, VRDN, AMT, 3.80% 4/7/98* 3.80 1,100 1,100
Intermountain Power Agency:
Variable Rate Power Supply Revenue Bonds,
1985 Series F, 3.93% Optional Put 6/15/98* 3.93 3,000 3,000
Variable Rate Power Supply Revenue and Refunding
Bonds, 1985 Series F2, TECP, 3.30% 5/11/98 3.30 2,500 2,500
Washington - 2.63%
Student Loan Finance Association,
Guaranteed Student Loan Program VRDN, AMT:
1988 Series B, 3.60% 4/7/98* 3.60 1,000 1,000
1988 Series B, 3.60% 4/7/98* 3.60 1,300 1,300
Port of Seattle, General Obligation Bonds,
Series 1985, VRDN, 3.65% 4/7/98* 3.65 2,700 2,700
West Virginia - 1.42%
The County Commission of Marion County, Solid
Waste Disposal Facility Revenue Bonds, 1990
Series A (Grant Town Cogeneration Project),
VRDN, AMT, 3.75% 4/7/98* 3.75 1,700 1,700
Public Energy Authority, Energy Revenue Bonds
(Morgantown Energy Associates Project),
1989 Series A, TECP, AMT, 3.45% 5/5/98 3.45 1,000 1,000
Wisconsin - 1.42%
State Operating Notes of 1997, 4.50% 6/15/98 3.53 2,700 2,704
Wyoming - 3.57%
City of Gillette, Campbell County,
Pollution Control Revenue Bonds
(PacifiCorp Projects), Series 1988,
TECP, 3.65% 6/3/98 3.65 2,500 2,500
Sweetwater County Pollution Control
Revenue Bonds (PacifiCorp Projects):
Series 1988A, TECP, 3.25% 4/3/98 3.25 1,100 1,100
Series 1990A, VRDN, 3.65% 4/7/98* 3.65 3,200 3,200
---------
Total Tax-Exempt Securites (Cost: $188,722,000) 188,708
Excess of cash and receivables over payables 1,700
---------
Net Assets 190,408
=========
* Coupon rate may change periodically; "yield at acquisition"
reflects current coupon rate.
See Notes to Financial Statements
</TABLE>
<TABLE>
The Tax-Exempt Money Fund of America
Financial Statements Unaudited
- -------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at March 31, 1998 (dollars in thousands)
- ------------------------------------- ------------ ------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $188,722) $188,708
Cash 155
Receivables for--
Sales of fund's shares $943
Accrued interest 2,052 2,995
------------ ------------
191,858
Liabilities:
Payables for--
Repurchases of fund's shares 1,327
Dividends payable 30
Management services 72
Accrued expenses 21 1,450
------------ ------------
Net Assets at March 31, 1998 --
Equivalent to $1.00 per share on
190,431,659 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $190,408
=============
Statement of Operations Unaudited
for six months ended March 31, 1998 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 3,124
Expenses:
Management services fee $382
Distribution expenses 47
Transfer agent fee 71
Reports to shareholders 16
Registration statement and prospectus 50
Postage, stationery and supplies 23
Trustees' fees 6
Auditing and legal fees 34
Custodian fee 2
Taxes other than federal income tax 4
Other expenses 12
------------------
Total expenses before reimbursement 647
Reimbursement of expenses 83 564
------------ ------------
Net investment income 2,560
------------
Change in Unrealized Appreciation
(Depreciation) on Investments:
Net unrealized appreciation
(depreciation) on investments:
Beginning of period 9
End of period (14)
------------
Net change in unrealized appreciation
(depreciation) on investments (23)
------------
Net unrealized
depreciation on investments (23)
------------
Net Increase in Net Assets Resulting
from Operations $2,537
============
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------- -------------
Six months Year ended
ended
3/31/98* 9/30/97
Operations: ------------- -------------
Net investment income $ 2,560 $ 4,618
Net realized gain - (5)
Net unrealized appreciation
(depreciation)
on investments (23) 3
------------- -------------
Net increase in net assets
resulting from operations 2,537 4,616
------------- -------------
Dividends Paid to Shareholders (2,566) (4,618)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
185,108,469 and 308,684,562
shares, respectively 185,108 308,684
Proceeds from shares issued in
reinvestment of net investment
income dividends:
2,337,647 and 4,217,106 shares,
respectively 2,338 4,217
Cost of shares repurchased:
156,916,425 and 296,711,176
shares, respectively (156,916) (296,711)
------------- -------------
Net increase in net assets
resulting from capital share
transactions 30,530 16,190
------------- -------------
Total Increase in Net Assets 30,501 16,188
Net Assets:
Beginning of period 159,907 143,719
------------- -------------
End of period $190,408 $159,907
============= ==============
* 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 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.
Securities having 60 days or less to maturity are amortized to maturity based
on their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. All other
fixed-income securities are valued at prices obtained from a pricing service,
when such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean quoted bid and asked prices or at prices for securities of comparable
maturity, quality and type. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Interest income
is reported on the accrual basis. Discounts and premiums on securities
purchased are amortized. Dividends to shareholders 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 to its shareholders. Therefore, no
federal income tax provision is required.
As of March 31, 1998, unrealized depreciation on investments for book and
federal income tax purposes aggregated $14,000, of which $1,000 related to
appreciated securities and $15,000 related to depreciated securities. The cost
of portfolio securities for book and federal income tax purposes was
$188,722,000 at March 31, 1998.
3. The fee of $382,000 for management services was incurred pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.44% 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% of such 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 a fee reduction 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 twelve 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 daily net assets. Expenses
that are not subject to these limitations are interest, taxes, brokerage
commissions, transaction costs and extraordinary expenses. Fee reductions were
$83,000 for the six months ended March 31, 1998. There can be no assurance that
this voluntary fee waiver will continue in the future.
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, 1998, distribution expenses under the Plan were
$47,000. As of March 31, 1998, accrued and unpaid distribution expenses were
$6,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $71,000.
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, 1998,
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, including maturities, of investment
securities of $460,780,000 and $430,673,000, respectively, during the six
months ended March 31, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $2,000 was paid by these credits rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
- ------------------------------------------------------------------ ---------- ---------- ---------- ---------- ----------
Year ended
Six months September 30
ended ---------- ---------- ---------- ---------- ----------
3/31/98 /1 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
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 .029 .029 .031 .020 .019
---------- ---------- ---------- ---------- ---------- ----------
Total income from investment operations .015 .029 .029 .031 .020 .019
---------- ---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends from net investment income (.015) (.029) (.029) (.031) (.020) (.019)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (.015) (.029) (.029) (.031) (.020) (.019)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= =========== =========== =========== =========== ============
Total Return 1.48% /2/ 2.94% 2.91% 3.14% 1.98% 1.90%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $190 $160 $144 $150 $170 $121
Ratio of expenses to average net assets -
before fee waiver .37% /2/ .74% .77% .75% .73% .79%
Ratio of expenses to average net assets -
after fee waiver .33% /2/ .65% .65% .65% .65% .65%
Ratio of net income to average net assets 1.48% /2/ 2.94% 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.
</TABLE>
THE AMERICAN FUNDS GROUP(R)
SHAREHOLDERS SERVICES
SERVICES TO MATCH YOUR LIFESTYLE
AMERICAN FUNDSLINE(R) AND FUNDSLINE ONLINE(SM)- Handle transactions using your
phone or computer 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 a prospectus (Web site only), or
duplicate statements and order checks (phone only). All on your timetable.
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 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.
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.
Please read the prospectus before you exchange shares.
* 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.
IRA OPTIONS - Whether you're opening a new or rollover IRA, a Roth or
traditional IRA, or a company-sponsored SEP or SIMPLE IRA, you'll find a wide
range of funds to match your investment style.
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, and year-end tax reports that show the
dividends and capital gain distributions paid to you during the year.
QUESTIONS?
For more information about these services or any of the American Funds, please
obtain a current prospectus from your financial adviser or our Web site. Read
it carefully before investing.
TO CONTACT AMERICAN FUNDS SERVICE COMPANY:
- - Shareholder Services Representative, 8 a.m. to 8 p.m. ET - 800/421-0180
- - American FundsLine, 24-hour automated phone system - 800/325-3590
- - FundsLine OnLine, Web site - www.americanfunds.com
- - By mail - Write to the service center nearest you.
(If you live outside the U.S., please write to the Western Service Center.)
[map of the United States]
Western
American Funds
Service Company
P.O. Box 2205
Brea, California
92822-2205
West Central
American Funds
Service Company
P.O. Box 659522
San Antonio, Texas
78265-9522
East Central
American Funds
Service Company
P.O. Box 6007
Indianapolis, Indiana
46206-6007
Eastern
American Funds
Service Company
P.O. Box 2280
Norfolk, Virginia
23501-2280
American Funds reserves the right to terminate or modify any of these services.
[The American Funds Group(r)]
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
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
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 FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY AT 800/421-0180 OR VISIT WWW.AMERICANFUNDS.COM ON THE WORLD WIDE WEB.
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, 1998, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA CD/CG/3764
Lit. No. MMF-013-0598
Printed on recycled paper
