[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
ANNUAL REPORT
for the year ended September 30, 1999
[cover illustration: three different colored eggs in a bird's nest]
THE CASH MANAGEMENT TRUST OF AMERICA,(R) THE U.S. TREASURY MONEY FUND OF
AMERICA(SM) AND THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) ARE THREE OF THE 29
MUTUAL FUNDS IN THE AMERICAN FUNDS GROUP,(R) THE NATION'S THIRD-LARGEST MUTUAL
FUND FAMILY. FOR MORE THAN SIX DECADES, CAPITAL RESEARCH AND MANAGEMENT
COMPANY, THE AMERICAN FUNDS ADVISER, HAS INVESTED WITH A LONG-TERM FOCUS BASED
ON THOROUGH RESEARCH AND ATTENTION TO RISK.
THE CASH MANAGEMENT TRUST OF AMERICA
The Cash Management Trust of America 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 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 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.
SEVEN-DAY ANNUALIZED RATES/1/
For the months ended September 30, 1994-September 30, 1999
[begin line chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Cash Management U.S. Treasury Tax-Exempt Tax-Exempt
Trust Money Fund Money Fund Money Fund
(Taxable Equiv-
alent yield)
Sep - 94 4.17 3.86 2.56 4.24
Oct 4.40 4.02 2.66 4.40
Nov 4.63 4.33 2.98 4.90
Dec 5.34 4.78 3.75 6.21
Jan 5.35 4.85 2.95 4.88
Feb 0.46 4.98 3.45 5.71
Mar 5.57 5.15 3.33 5.51
Apr 5.54 5.13 3.54 5.86
May 5.52 5.07 3.48 5.76
Jun 5.44 5.03 3.14 5.20
Jul 5.31 4.98 2.80 4.64
Aug 5.29 4.86 3.00 4.97
Sep - 95 5.26 4.86 3.19 5.28
Oct 5.27 4.85 3.11 5.15
Nov 5.30 4.75 3.12 5.17
Dec 5.14 4.68 3.36 5.56
Jan 5.08 4.62 2.75 4.55
Feb 4.78 4.43 2.68 4.44
Mar 4.77 4.41 2.67 4.42
Apr 4.89 4.53 2.89 4.78
May 4.79 4.39 2.93 4.85
Jun 4.77 4.47 2.80 4.64
Jul 4.80 4.53 2.80 4.64
Aug 4.76 4.53 2.82 4.67
Sep - 96 4.82 4.57 2.93 4.85
Oct 4.75 4.50 2.81 4.65
Nov 4.72 4.44 2.88 4.77
Dec 4.87 4.38 3.03 5.02
Jan 4.77 4.39 2.80 4.64
Feb 4.63 4.40 2.75 4.55
Mar 4.85 4.69 2.74 4.54
Apr 5.06 4.86 3.11 5.15
May 5.11 4.87 3.09 5.12
Jun 5.13 4.76 3.13 5.18
Jul 5.05 4.78 3.04 5.03
Aug 5.04 4.67 2.93 4.85
Sep - 97 5.07 4.45 3.11 5.15
Oct 5.03 4.62 3.08 5.10
Nov 4.91 4.66 3.11 5.15
Dec 5.36 4.70 3.20 5.30
Jan 5.03 4.39 2.94 4.87
Feb 4.95 4.43 2.76 4.57
Mar 5.03 4.57 2.92 4.83
Apr 4.84 4.35 3.06 5.07
May 5.05 4.48 2.85 4.72
Jun 5.09 4.38 2.93 4.85
Jul 4.97 4.43 2.90 4.80
Aug 4.94 4.38 2.80 4.64
Sep - 98 4.99 4.35 2.88 4.77
Oct 4.74 3.81 2.55 4.22
Nov 4.49 3.72 2.48 4.11
Dec 4.73 3.89 2.62 4.34
Jan 4.47 3.80 2.22 3.68
Feb 4.34 3.83 2.22 3.68
Mar 4.23 3.83 2.29 3.79
Apr 4.26 3.75 2.53 4.19
May 4.34 3.82 2.55 4.22
Jun 4.35 3.79 2.60 4.30
Jul 4.57 4.00 2.52 4.17
Aug 4.75 4.24 2.64 4.37
Sep - 99 4.61 4.32 2.94 4.80
</TABLE>
[end chart]
The U.S. Treasury Money Fund of America/2/
The Tax-Exempt Money Fund of America (federally tax-free)/3/
The Tax-Exempt Money Fund of America (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 shown 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.
For current yields, please call American FundsLine(r), toll-free, at
800/325-3590; press 1 for yield information.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS.
INVESTMENTS RETURNS WILL VARY. ALTHOUGH THE FUNDS ATTEMPT TO MAINTAIN A
CONSTANT NET ASSET VALUE OF $1.00 PER SHARE, THERE CAN BE NO GUARANTEE THAT
THEY WILL BE ABLE TO DO SO. THEREFORE, YOU MAY LOSE MONEY. INVESTMENTS ARE NOT
FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER
ENTITY. 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.
FELLOW SHAREHOLDERS:
We reported to you a year ago during a period of turmoil for U.S. and world
stock markets, an outgrowth of severe economic difficulties in Asia and Russia.
The crisis has abated in Asian markets, reflecting investor confidence that
recent economic reforms will prove effective. Russia, on the other hand,
remains troubled.
Over your funds' fiscal year ended September 30, the U.S. economy continued to
show remarkable strength along with surprisingly moderate inflation - a 2.6%
increase as measured by the Consumer Price Index. The U.S. stock market also
recorded strong growth during the period, reaching a peak in late August.
Recent market volatility has again demonstrated the benefit of diversifying
your investment portfolio to help offset movements in stock prices.
Interest rates on money market instruments moved down early in the funds'
fiscal year and up later on. To help ease the impact of the economic crises
still evident last fall, the Federal Reserve cut short-term interest rates
three times from late September to mid-November. It left rates unchanged for
seven months but moved to boost rates on June 30 and again on August 24, citing
an improvement in foreign economies and brisk economic activity in the United
States. The federal funds rate (the rate banks charge each other for overnight
loans) stood at 5.25% at the end of the funds' fiscal year. On October 5, the
Fed signaled a bias toward raising rates to combat inflationary pressures.
Your funds' seven-day yields (shown in the chart opposite) largely followed
these interest rate trends. While current yields may seem low by historical
standards, in a context of low inflation the funds still offered shareholders
attractive real (inflation-adjusted) returns.*
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 4.59% with
dividends reinvested over the year ended September 30.
THE U.S. TREASURY MONEY FUND OF AMERICA produced a 12-month income return of
4.00% including reinvested dividends. Because all the fund's earnings are
derived from investments in U.S. Treasury securities, the income paid by the
fund is exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA generated a federally tax-free income
return of 2.51% with dividends reinvested. This return is equivalent to a
return of 4.16% for investors in the 39.6% federal tax bracket. A portion of
this income may also be exempt from state and local taxes.
PREPARING FOR THE NEW MILLENNIUM
As the much-anticipated date of January 1, 2000 approaches, you may be anxious
about computer or service problems related to Y2K. We are pleased to report
that your funds' key service providers have updated all computer systems to
process information properly in the new millennium. For more information about
our compliance efforts, call American Funds Service Company at 800/421-0180,
ext. 21, or visit our Web site at www.americanfunds.com.
On pages 2 and 3, you can learn more about your funds' investment adviser,
Capital Research and Management Company, and its approach to managing the 29
funds in the American Funds family. We appreciate your choice of an American
Funds money market fund for your investment portfolio and look forward to
reporting to you again in six months.
Cordially,
/s/Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Chairman of the Boards
/s/Abner D. Goldstine
Abner D. Goldstine
President
November 15, 1999
*The Tax-Exempt Money Fund of America's taxable equivalent yield in fiscal 1999
exceeded inflation for all tax brackets.
WHAT MAKES THE AMERICAN FUNDS DIFFERENT?
As a shareholder in any of our three money market funds, you are also a member
of The American Funds Group, the nation's third-largest mutual fund family. You
won't find us advertised, yet thousands of financial advisers recommend the
American Funds for their clients' serious money - money set aside for
education, a home, retirement and other important dreams.
What the 29 funds in our group have in common is a commitment to your best
interests and the proven approach of our investment adviser, Capital Research
and Management Company. In business since 1931, Capital's calling cards
include:
A LONG TERM, VALUE-ORIENTED APPROACH:
Rather than follow short-term fads, we rely on our own intensive research to
find well-managed companies with reasonably priced securities and solid,
long-term value. Despite our size, we offer relatively few funds compared with
many large fund families, allowing us to maintain a careful focus on our
objectives and benefit from economies of scale.
A GLOBAL PERSPECTIVE:
We opened our first overseas office in 1962, well before most mutual funds
began investing internationally. Today, the American Funds draw on one of the
industry's most globally integrated research networks. We spend substantial
resources getting to know companies and industries around the world.
A MULTIPLE PORTFOLIO COUNSELOR SYSTEM:
More than 40 years ago, we developed a strategy for managing investments that
blends teamwork with individual accountability. Every American Fund is divided
among a number of portfolio counselors, each of whom manages his or her portion
independently, within each fund's objectives; in most cases, research analysts
manage a portion as well. Over time, this method has contributed to consistency
of results and continuity of management.
EXPERIENCED INVESTMENT PROFESSIONALS:
Nearly 90% of the portfolio counselors who serve the American Funds were in the
investment business before the stock market decline of October 1987. Long
tenure and experience through a variety of market conditions mean we aren't
"practicing" with your money.
A COMMITMENT TO LOW OPERATING EXPENSES:
You can't control market returns, but you can control what you invest in and
how much you pay to own it. American Funds provide exceptional value for
shareholders, with operating expenses that are among the lowest in the mutual
fund industry. Our portfolio turnover rates are low as well, helping keep
transaction costs and tax consequences contained.
A PORTFOLIO FOR EVERY INVESTOR
[illustration: three colored eggs in a bird's nest]
Most financial advisers suggest that investors balance their portfolios by
investing across several types of investments. Which mix is right for you? That
depends on a number of things - including your risk tolerance, investment time
horizon and financial goals. In addition to our three money market funds, which
seek stable monthly income through money market investments, The American Funds
Group offers 26 funds with an array of investment objectives to help you and
your financial adviser build a portfolio specifically tailored to your needs.
GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP Fund(r)
EuroPacific Growth Fund(r)
The Growth Fund of America(r)
The New Economy Fund(r)
New Perspective Fund(r)
New World Fund(SM)
(SM)ALLCAP World Fund(r)
GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
American Mutual Fund(r)
Capital World Growth and Income Fund(SM)
Fundamental Investors(SM)
The Investment Company of America(r)
Washington Mutual Investors Fund(SM)
EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
Capital Income Builder(r)
The Income Fund of America(r)
BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
American Balanced Fund(r)
INCOME FUNDS
Emphasis on current income through bonds
American High-Income Trust(SM)
The Bond Fund of America(SM)
Capital World Bond Fund(r)
Intermediate Bond Fund of America(r)
U.S. Government Securities Fund(SM)
TAX-EXEMPT INCOME FUNDS
Emphasis on tax-free current income through municipal bonds
American High-Income Municipal Bond Fund(r)
Limited Term Tax-Exempt Bond Fund of America(SM)
The Tax-Exempt Bond Fund of America(r)
State-specific tax-exempt funds
The Tax-Exempt Fund of California(r)
The Tax-Exempt Fund of Maryland(r)
The Tax-Exempt Fund of Virginia(r)
For more complete information about any of the American Funds, including
charges and expenses, please obtain a prospectus from your financial adviser,
download one from our Web site at www.americanfunds.com, or phone the funds'
transfer agent, American Funds Service Company, at 800/421-0180. Read the
prospectus carefully before you invest or send money. For further information,
ask your financial adviser for a copy of A Portfolio for Every Investor.
<TABLE>
The Cash Management Trust of America
Investment Portfolio, September 30, 1999
<S> <C> <C> <C>
Yield at Principal Market
Acquisition Amount Value
(000) (000)
-------- -------- --------
Certificates of Deposit - 0.85%
Canadian Imperial Bank of Commerce
5.35% November 19, 1999 5.35% $50,000 $ 50,000
----------
Total Certificates of Deposit 50,000
----------
Commercial Paper - 74.24%
Abbey National North America
November 8, 1999 5.35 50,000 49,713
American Express Credit Corp.
October 27, 1999 5.31 100,000 99,604
American General Finance Corp.
November 12, 1999 5.36 50,000 49,683
November 16, 1999 5.37 25,000 24,826
American Honda Finance Corp.
October 14, 1999 5.31 75,000 74,846
ANZ (Delaware) Inc.
October 18, 1999 5.31 75,000 74,802
Archer Daniels Midland Co.
October 5, 1999 5.29 35,000 34,975
Associates Corp. of North America
October 1, 1999 5.53 25,000 24,996
October 8, 1999 5.27 25,000 24,971
November 2, 1999 5.31 50,000 49,758
Atlantic Richfield Co.
November 1, 1999 (1) 5.34 25,000 24,882
Barclays U.S. Funding Corp.
October 18, 1999 5.31 50,000 49,869
Bayer Corp.
October 5, 1999 (1) 5.28 40,000 39,971
BellSouth Capital Funding Corp.
October 18, 1999 (1) 5.28 35,000 34,908
November 16, 1999 (1) 5.33 25,000 24,828
November 17, 1999 (1) 5.33 40,000 39,718
BMW U.S. Capital Corp.
October 7, 1999 5.29 40,000 39,960
October 28, 1999 5.32 35,000 34,857
Campbell Soup Co.
November 15, 1999 5.33 35,000 34,764
CBA (Delaware) Finance Inc.
October 5, 1999 5.25 25,000 24,982
October 13, 1999 5.33 25,000 24,956
Chevron USA Inc.
October 12, 1999 (1) 5.34 35,000 34,939
November 18, 1999 (1) 5.37 15,000 14,891
Ciesco LP
October 12, 1999 5.34 50,000 49,912
CIT Group, Inc.
October 8, 1999 5.26 30,000 29,965
October 26, 1999 5.30 20,000 19,924
November 22, 1999 5.37 25,000 24,804
Coca-Cola Co.
October 18, 1999 5.25 50,000 49,870
October 26, 1999 5.30 25,000 24,905
November 22, 1999 5.32 35,000 34,728
Colgate-Palmolive Co.
October 20, 1999 (1) 5.30 75,000 74,780
Duke Energy Corp.
October 1, 1999 5.50 20,000 19,997
October 12, 1999 5.25 30,000 29,948
Eastman Kodak Co.
October 6, 1999 5.24 25,000 24,978
November 10, 1999 5.34 20,000 19,879
November 17, 1999 5.35 20,000 19,859
November 18, 1999 5.34 35,000 34,748
E.I. du Pont de Nemours and Co.
October 5, 1999 5.28 20,000 19,986
October 6, 1999 5.23 25,000 24,978
November 12, 1999 5.31 30,000 29,811
Electronic Data Systems Corp.
October 06, 1999 (1) 5.30 25,000 24,978
October 25, 1999 (1) 5.31 25,000 24,909
Emerson Electric Co.
October 21, 1999 5.82 50,000 49,846
Ford Motor Credit Co.
October 7, 1999 5.26 25,000 24,975
October 26, 1999 5.31 25,000 24,904
November 17, 1999 5.33 50,000 49,648
Fortune Brands Inc.
October 8, 1999 (1) 5.28 10,000 9,988
October 15, 1999 (1) 5.31 50,000 49,890
France Telecom SA
October 1, 1999 5.21 9,192 9,191
October 6, 1999 5.28 25,000 24,978
November 2, 1999 5.34 38,000 37,814
Gannett Co.
October 6, 1999 (1) 5.29 25,000 24,978
October 22, 1999 5.30 50,000 49,839
General Electric Capital Corp.
October 29, 1999 5.35 50,000 49,786
November 16, 1999 5.37 50,000 49,653
General Motors Acceptance Corp.
October 1, 1999 5.24 25,000 24,996
October 26, 1999 5.31 75,000 74,712
Gillette Co.
October 7, 1999 (1) 5.19 25,000 24,975
November 4, 1999 (1) 5.35 25,000 24,871
Glaxo Wellcome PLC
October 4, 1999 (1) 5.24 15,000 14,991
October 12, 1999 (1) 5.31 15,000 14,974
October 20, 1999 (1) 5.31 30,000 29,912
Halifax PLC
October 4, 1999 5.20 25,000 24,986
November 8, 1999 5.34 50,000 49,713
Halliburton Co.
November 5, 1999 5.34 25,000 24,868
November 8, 1999 5.31 45,000 44,743
Hewlett-Packard Co.
October 12, 1999 5.30 50,000 49,912
H.J. Heinz Co.
October 19, 1999 5.30 50,000 49,861
October 20, 1999 5.31 20,000 19,941
October 21, 1999 5.30 25,000 24,923
Household Finance Corp.
October 8, 1999 5.26 30,000 29,965
October 13, 1999 5.31 50,000 49,905
IBM Credit Corp.
October 1, 1999 5.29 50,000 49,993
October 28, 1999 5.33 50,000 49,794
International Lease Finance Corp.
October 1, 1999 5.29 50,000 49,993
Internationale Nederlanden (U.S.) Funding Corp.
October 14, 1999 5.30 50,000 49,898
Johnson & Johnson
October 12, 1999 (1) 5.25 50,000 49,913
KfW International Finance Inc.
October 6, 1999 5.26 25,000 24,978
November 1, 1999 5.29 55,000 54,742
Kimberly-Clark Worldwide Inc.
October 13, 1999 (1) 5.32 50,000 49,905
Lucent Technologies Inc.
October 4, 1999 5.17 25,000 24,986
October 21, 1999 5.29 50,000 49,847
Minnesota Mining & Manufacturing Co.
October 20, 1999 5.30 25,000 24,927
Monsanto Co.
October 5, 1999 (1) 5.26 35,000 34,975
Motorola Credit Corp.
October 8, 1999 5.20 10,500 10,488
October 14, 1999 5.29 20,000 19,959
November 12, 1999 5.60 25,000 24,842
National Australia Funding (Delaware) Inc.
October 4, 1999 5.21 36,500 36,479
October 7, 1999 5.23 35,000 34,965
National Rural Utilities Cooperative
Finance Corp.
October 8, 1999 5.24 20,000 19,977
October 19, 1999 5.31 55,000 54,850
Pfizer Inc.
October 4, 1999 (1) 5.30 40,000 39,977
October 7, 1999 (1) 5.30 25,000 24,974
October 14, 1999 (1) 5.48 35,000 34,928
Pitney Bowes Credit Corp.
October 7, 1999 5.24 25,000 24,975
Procter & Gamble Co.
October 13, 1999 5.29 80,000 79,848
October 27, 1999 5.31 20,000 19,921
Reed Elsevier Inc.
October 28, 1999 (1) 5.31 50,000 49,795
Rio Tinto America Inc.
October 5, 1999 (1) 5.33 50,000 49,964
November 9, 1999 (1) 5.37 25,000 24,852
SBC Communications Inc.
November 18, 1999 (1) 5.32 50,000 49,641
Schering Corp.
October 7, 1999 5.31 50,000 49,949
Shell Finance (U.K.) PLC
October 6, 1999 5.25 15,000 14,987
October 29, 1999 5.32 25,000 24,894
November 4, 1999 5.42 35,000 34,820
November 22, 1999 5.34 25,000 24,805
Sony Capital Corp.
October 25, 1999 (1) 5.76 50,000 49,817
Svenska Handelsbanken Inc.
October 1, 1999 5.20 25,000 24,996
United Parcel Service of America, Inc.
October 4, 1999 5.31 50,000 49,971
Vodafone Airtouch PLC
October 19, 1999 (1) 5.34 25,000 24,930
October 25, 1999 (1) 5.37 25,000 24,908
Wal-Mart Stores, Inc.
October 18, 1999 (1) 5.31 25,000 24,934
October 25, 1999 (1) 5.30 30,000 29,890
November 1, 1999 (1) 5.32 45,000 44,795
Warner-Lambert Co.
November 10, 1999 (1) 5.33 50,000 49,699
Westpac Captial Corp.
November 9, 1999 5.38 50,000 49,706
Xerox Capital (Europe) PLC
October 4, 1999 5.20 50,000 49,971
October 6, 1999 5.22 10,000 9,991
October 22, 1999 5.30 40,000 39,871
Yale University
October 5, 1999 5.21 17,000 16,988
----------
Total Commercial Paper 4,302,704
----------
Federal Agency Discount Notes - 25.39%
Fannie Mae
October 1, 1999 5.10 6,000 5,999
October 7, 1999 5.18 25,000 24,975
October 25, 1999 5.28 25,000 24,909
November 1, 1999 5.30 65,500 65,194
November 2, 1999 5.30 50,000 49,759
November 3, 1999 5.28 100,000 99,505
November 4, 1999 5.30 25,000 24,872
November 5, 1999 5.30 40,000 39,790
November 9, 1999 5.21 100,000 99,435
November 23, 1999 5.24 80,000 79,378
Federal Home Loan Bank
October 8, 1999 5.15 156,200 156,023
October 15, 1999 5.22 100,000 99,785
October 22, 1999 5.24 59,205 59,017
November 5, 1999 5.29 65,000 64,659
November 12, 1999 5.20 25,000 24,849
November 19, 1999 5.27 45,000 44,674
Freddie Mac
October 7, 1999 5.20 25,000 24,975
October 8, 1999 5.15 103,000 102,883
October 14, 1999 5.20 55,000 54,890
October 15, 1999 5.22 45,000 44,903
October 21, 1999 5.25 25,000 24,924
November 4, 1999 5.23 60,000 59,694
November 9, 1999 5.29 75,000 74,563
November 10, 1999 5.29 50,000 49,701
November 15, 1999 5.24 65,000 64,564
November 18, 1999 5.27 25,000 24,822
----------
Total Federal Agency Discount Notes 1,488,742
----------
OTHER - 0.85%
Canada BHS
October 13, 1999 5.25 50,000 49,906
----------
Total Investment Securities 5,891,352
( cost: $5,891,320,000 )
Excess of payables over cash and receivables (28,302)
----------
Net Assets $5,863,050
============
(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 the Financial Statements
</TABLE>
<TABLE>
Cash Management Trust of America
Financial Statements
<S> <C> <C>
- ---------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at September 30, 1999 (dollars in thousands)
- ---------------------------------------- ------------ -----------
Assets:
Investment securities at market
(cost: $5,891,320) $5,891,352
Cash 1,293
Receivables for--
Sales of fund's shares $50,805
Accrued interest 71 50,876
------------ -----------
5,943,521
Liabilities:
Payables for--
Purchases of investments 0
Repurchases of fund's shares 77,839
Dividends payable 1,066
Management services 1,338
Accrued expenses 228 80,471
------------ -----------
Net Assets at September 30, 1999 -
Equivalent to $1.00 per share on
5,863,017,250 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $5,863,050
===========
Statement of Operations
for the year ended, September 30,1999 (dollars in thousands)
------------ -----------
Investment Income:
Income:
Interest $ 261,262
Expenses:
Management services fee $14,593
Distribution expenses 4,353
Transfer agent fee 6,887
Reports to shareholders 259
Registration statement and prospectus 806
Postage, stationery and supplies 1,972
Trustees' fees 23
Auditing and legal fees 46
Custodian fee 456
Taxes other than federal income tax 52
Other expenses 160 29,607
------------ -----------
Net investment income 231,655
-----------
Increase in Unrealized Appreciation
on Investments:
Net realized gain 0
Net unrealized appreciation
on investments:
Beginning of year 16
End of year 32
------------
Net increase in unrealized appreciation
on investments 16
------------
Net Increase in Net Assets
Resulting from Operations $231,671
============
Statement of Changes in Net Assets (dollars in thousands)
- ---------------------------------------- ------------ -----------
Year ended September 30
1999 1998
Operations: ------------ -----------
Net investment income $ 231,655 $ 193,772
Net change in unrealized appreciation
on investments 16 (3)
------------ -----------
Net increase in net assets
resulting from operations 231,671 193,769
------------ -----------
Dividends Paid to Shareholders (231,656) (193,772)
------------ -----------
Capital Share Transactions:
Proceeds from shares sold:
14,382,799,048 and 12,930,964,595
shares, respectively 14,382,799 12,930,965
Proceeds from shares issued in
reinvestment of net investment income
dividends:
215,272,362 and 177,120,323 shares,
respectively 215,273 177,120
Cost of shares repurchased:
13,338,941,818 and 12,030,835,086
shares, respectively (13,338,942) (12,030,835)
------------ -----------
Net increase in net assets resulting
from capital share transactions 1,259,130 1,077,250
------------ -----------
Total Increase in Net Assets 1,259,145 1,077,247
Net Assets:
Beginning of year 4,603,905 3,526,658
------------ -----------
End of year $5,863,050 $4,603,905
============= =============
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
NET ASSET VALUE - 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.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained from
a pricing service, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. The ability of the issuers
of the debt securities held by the fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. Securities and assets for which
representative market quotations are not readily available are valued at fair
value as determined in good faith by a committee appointed by the Board of
Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Interest income is recognized on an accrual
basis. Market discounts, premiums, and original issue discounts on securities
purchased are amortized daily over the expected life of the security.
DIVIDENDS TO SHAREHOLDERS - Dividends to shareholders are declared daily after
the determination of the fund's net investment income and are paid to
shareholders monthly.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income for the fiscal year. As a regulated investment company, the
fund is not subject to income taxes if such distributions are made. Required
distributions are determined on a tax basis and may differ from net investment
income for financial reporting purposes. In addition, the fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund.
As of September 30, 1999, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $32,000, of which $33,000
related to appreciated securities and $1,000 related to depreciated securities.
The cost of portfolio securities for book and federal income tax purposes was
$5,891,320,000 at September 30, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $14,593,000 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.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution with American Funds
Distributors, Inc. (AFD), the fund may expend up to 0.15% of its average net
assets annually for any activities primarily intended to result in sales of
fund shares, provided the categories of expenses for which reimbursement is
made are approved by the fund's Board of Trustees. Fund expenses under the Plan
include payments to dealers to compensate them for their selling and servicing
efforts. During the year ended September 30, 1999, distribution expenses under
the Plan were $4,353,000. As of September 30, 1999, accrued and unpaid
distribution expenses were $342,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $6,887,000.
DEFERRED TRUSTEES' FEES - Trustees who are unaffiliated with CRMC may elect to
defer part or all of the fees earned for services as members of the Board.
Amounts deferred are not funded and are general unsecured liabilities of the
fund. As of Septmeber 30, 1999, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Trustees, were $26,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both wholly
owned subsidiaries of CRMC. Certain Trustees and officers of the fund are or
may be considered to be affiliated with CRMC, AFS and AFD. No such persons
received any remuneration directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, including
maturities, of $49,109,036,000 and $48,100,307,000, respectively, during the
year ended September 30, 1999.
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 $456,000 includes $54,000 that was paid by these credits
rather than in cash.
<TABLE>
<S> <C> <C> <C>
Per-Share Data and Ratios ------------ ------------ ----------
Year ended September 30
1999 1998 1997
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00
------------ ------------ ----------
Income From Investment Operations:
Net investment income .045 .050 .049
------------ ------------ ----------
Total from investment operations .045 .050 .049
----------- ----------- ---------
Less Distributions:
Dividends (from net investment income) (.045) (.050) (.049)
----------- ----------- ---------
Total distributions (.045) (.050) (.049)
----------- ----------- ---------
Net Asset Value, End of Year $1.00 $1.00 $1.00
========== ========== ========
Total Return 4.59% 5.15% 5.03%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $5,863 $4,604 $3,527
Ratio of expenses to average net assets .58% .58% .57%
Ratio of net income to average net assets 4.52% 5.02% 4.93%
Per-Share Data and Ratios ---------- ---------
1996 1995
Net Asset Value, Beginning of Year $1.00 $1.00
---------- ---------
Income From Investment Operations:
Net investment income .050 .052
---------- ---------
Total from investment operations .050 .052
----------- ---------
Less Distributions:
Dividends (from net investment income) (.050) (.052)
----------- ---------
Total distributions (.050) (.052)
---------- ---------
Net Asset Value, End of Year $1.00 $1.00
======== =======
Total Return 5.06% 5.34%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $3,304 $2,996
Ratio of expenses to average net assets .60% .60%
Ratio of net income to average net assets 4.95% 5.21%
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of The Cash Management Trust of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Cash Management Trust of
America(the "Fund") at September 30, 1999, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at September 30, 1999 by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
October 29, 1999
1999 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, none of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2000 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 1999 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
<TABLE>
The U.S. Treasury Money Fund of America
Investment Portfolio
September 30, 1999
<S> <C> <C> <C>
Principal Market
Yield at Amount Value
Acquisition (000) (000)
------------- ------- -------------
U.S. Treasury Securities - 99.99%
U.S. Treasury bills 10/7/99 4.64% - 4.74% $58,790 $58,740
U.S. Treasury bills 10/14/99 4.57% - 4.80% 40,960 40,888
U.S. Treasury bills 10/21/99 4.52% - 4.77% 29,470 29,395
U.S. Treasury bills 10/28/99 4.60% - 4.73% 55,720 55,525
U.S. Treasury bills 11/4/99 4.59% - 4.82% 56,790 56,556
U.S. Treasury bills 11/12/99 4.60% - 4.92% 38,645 38,396
U.S. Treasury bills 11/18/99 4.75% - 4.86% 55,130 54,807
U.S. Treasury bills 11/26/99 4.91% 44,300 44,002
U.S. Treasury bills 12/2/99 4.70% - 4.92% 43,980 43,632
U.S. Treasury bills 12/9/99 4.67% - 4.90% 43,100 42,721
U.S. Treasury bills 12/23/99 4.77% - 4.78% 2,000 1,978
-------------
Total Investment Securities
(cost: $466,561,000) 466,640
Excess of cash and receivables 55
over payables -------------
Net Assets $466,695
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
The U.S. Treasury Money Fund of America
Financial Statements
<S> <C> <C>
- ---------------------------------------- ------------ ------------
Statement of Assets and Liabilities
at September 30, 1999 (dollars in thousands)
- ---------------------------------------- ------------ ------------
Assets:
Investment securities at market
(cost: $466,561) $466,640
Cash 437
Receivables for --
Sales of fund's shares 2,002
------------
469,079
Liabilities:
Payables for --
Repurchases of fund's shares $2,157
Dividends payable 67
Management services 114
Accrued expenses 46 2,384
------------ ------------
Net Assets at September 30, 1999 --
Equivalent to $1.00 per share on
466,616,074 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $466,695
=============
Statement of Operations
for the year ended September 30, 1999 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 19,153
Expenses:
Management services fee $1,272
Distribution expenses 438
Transfer agent fee 411
Reports to shareholders 24
Registration statement and prospectus 138
Postage, stationery and supplies 108
Trustees' fees 16
Auditing and legal fees 31
Custodian fee 38
Taxes other than federal income tax 4
Other expenses 9 2,489
------------ ------------
Net investment income 16,664
------------
Change in Unrealized Appreciation
on Investments:
Net unrealized
appreciation on investments:
Beginning of year 219
End of year 79
------------
Net change in unrealized appreciation
on investments (140)
------------
Net Increase in Net Assets Resulting
from Operations $16,524
============
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- --------------------------
Year ended September 30
1999 1998
Operations: --------------------------
Net investment income 16,664 $13,215
Net change in unrealized appreciation
on investments (140) 141
--------------------------
Net increase in net assets
resulting from operations 16,524 13,356
--------------------------
Dividends Paid to Shareholders (16,664) (13,215)
--------------------------
Capital Share Transactions:
Proceeds from shares sold:
774,656,722 and 660,343,206
shares, respectively 774,656 660,344
Proceeds from shares issued in
reinvestment of net investment income
dividends: 15,676,872 and
12,201,748 shares, respectively 15,677 12,201
Cost of shares repurchased:
679,107,911 and 596,431,556
shares, respectively (679,108) (596,431)
--------------------------
Net increase in net assets resulting
from capital share transactions 111,225 76,114
--------------------------
Total Increase in Net Assets 111,085 76,255
Net Assets:
Beginning of year 355,610 279,355
--------------------------
End of year $466,695 $355,610
==========================
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
NET ASSET VALUE - 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.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from a pricing service, when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. Securities and assets for which representative market quotations are not
readily available are valued at fair value as determined in good faith by a
committee appointed by the Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME <UNDEF> Security
transactions are accounted for as of the trade date. Interest income is
recognized on an accrual basis. Market discounts, premiums, and original issue
discounts on securities purchased are amortized daily over the expected life of
the security.
DIVIDENDS TO SHAREHOLDERS - Dividends to shareholders are declared daily
after the determination of the fund's net investment income and are paid to
shareholders monthly.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income for the fiscal year. As a regulated investment company,
the fund is not subject to income taxes if such distributions are made.
Required distributions are determined on a tax basis and may differ from net
investment income for financial reporting purposes. In addition, the fiscal
year in which amounts are distributed may differ from the year in which the net
investment income is recorded by the fund.
As of September 30, 1999, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $79,000, of which $115,000
related to appreciated securities and $36,000 related to depreciated
securities. The cost of portfolio securities for book and federal income tax
purposes was $466,561,000 at September 30, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,272,000 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.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution with American
Funds Distributors, Inc. (AFD), the fund may expend up to 0.15% of its average
net assets annually for any activities primarily intended to result in sales of
fund shares, provided the categories of expenses for which reimbursement is
made are approved by the fund's Board of Trustees. Fund expenses under the Plan
include payments to dealers to compensate them for their selling and servicing
efforts. During the year ended September 30, 1999, distribution expenses under
the Plan were $438,000. As of September 30, 1999, accrued and unpaid
distribution expenses were $38,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $411,000.
DEFERRED TRUSTEES' FEES - Trustees who are unaffiliated with CRMC may
elect to defer part or all of the fees earned for services as members of the
Board. Amounts deferred are not funded and are general unsecured liabilities of
the fund. As of September 30, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993), net of any
payments to Trustees, were $12,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, including
maturities, of $2,078,933,000 and $1,986,103,000, respectively, during the year
ended September 30, 1999.
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 $38,000 includes $19,000 that was paid by these credits
rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA AND RATIOS
- ------------------------------ --------------------------------------
Year endSeptembe 30
--------------------------------------
1999 1998 1997 1996 1995
--------------------------------------
Net Asset Value, Beginning
of Year $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------
Income from Investment
Operations:
Net investment income .039 .045 .046 .046 .048
Total from investment --------------------------------------
operations .039 .045 .046 .046 .048
--------------------------------------
Less Distributions:
Dividends (from net investment
income) (.039) (.045) (.046) (.046) (.048)
--------------------------------------
Total distributions (.039) (.045) (.046) (.046) (.048)
--------------------------------------
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
======================================
Total Return 4.00% 4.63% 4.71% 4.66% 4.89%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $467 $356 $279 $256 $231
Ratio of expenses to average
net assets .59% .59% .53% .65% .67%
Ratio of net income to
average net assets 3.95% 4.49% 4.61% 4.53% 4.79%
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of The U.S. Treasury Money Fund of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The U.S. Treasury Money Fund of
America(the "Fund") at September 30, 1999, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at September 30, 1999 by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
October 29, 1999
1999 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, all of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2000 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 1999 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
<TABLE>
Investment Portfolio
September 30, 1999
<S> <C> <C> <C>
Principa Market
Yield at Amount Value
Municipal Securities Acquisiti (000) (000)
Alabama - 1.17%
Town of Chatom, Industrial Development Board,
Pollution Control
Revenue Refunding Bonds (Alabama Electric
Cooperative, Inc.
Project), Pooled Series 1993, TECP:
3.40% 11/2/99 3.40% $1,400 $1,400
3.60% 11/2/99 3.60 1,600 1,600
Alaska - 4.15%
City of Valdez, Marine Terminal Revenue Refunding
Bonds
(ARCO Transportation Alaska, Inc. Project),TECP:
1994 Series A,
3.35% 10/12/99 3.35 1,500 1,500
3.45% 11/08/99 3.45 2,200 2,200
3.55% 11/08/99 3.55 1,700 1,700
3.55% 11/12/99 3.55 1,500 1,500
1994 Series C, 3.25% 10/06/99 3.25 2,000 2,000
City of Valdez, Variable Rate Marine Terminal
Revenue Refunding
Bonds (Mobil Alaska Pipeline Co. Project),
1993 Series A,
3.77% 10/6/99* 3.77 1,700 1,700
Arizona - 3.95%
Salt River Project Agricultural Improvement and
Power District,
Promissory Notes, TECP:
Series B:
3.30% 10/18/99 3.30 1,000 1,000
3.35% 10/26/99 3.35 2,100 2,100
Series G, 3.45% 11/09/99 3.45 2,000 2,000
Series L:
3.40% 11/03/99 3.40 2,000 2,000
3.50% 11/05/99 3.50 2,000 2,000
County of Apache, Industustrial Development
Revenue Bonds,(Tuscon Electric Power Co.
Springerville Project), 1983 Series B, 3.85%
10/6/99* 3.85 1,000 1,000
Connecticut - 1.06%
Health and Educational Facilities Authority, Revenue
Bonds, Yale University Issue, Series T, 3.70%, 10/7/99* 3.70 2,700 2,700
Florida - 5.91%
Florida Municipal Power Agency Initial Pooled
Loan Project
Commercial Paper Notes, Series A, TECP:
3.35% 10/07/99 3.35 3,000 3,000
3.55% 10/14/99 3.55 1,990 1,990
3.35% 10/19/99 3.35 1,400 1,400
Jacksonville Electric Authority Electric System,TECP:
Series A, TECP:
3.15% 10/06/99 3.15 1,500 1,500
3.45% 10/13/99 3.45 2,000 2,000
Series C-1:
3.35% 10/05/99 3.35 2,000 2,000
3.35% 10/06/99 3.35 2,000 2,000
3.50% 11/03/99 3.50 1,200 1,200
Idaho - 0.59%
Tax Anticipation Notes, Series 1999, 4.25% 6/30/00 3.42 1,500 1,507
Indiana - 2.39%
City of Fort Wayne, Hospital Authority, Variable
Rate Demand Bonds (Parkview Memorial
Hospital,Inc. Project), Series 1989B, 3.80% 10/7/99* 3.80 1,600 1,600
City of Sullivan, Pollution Control Revenue Bonds
(Hoosier Energy Rural Electric Cooperative, Inc.
Project), Series 1985L-4, TECP:
3.65% 10/26/99 3.65 2,000 2,000
3.65% 11/16/99 3.65 2,500 2,500
Iowa - 1.18%
Iowa School Cash Anticipation Program, Iowa
School Corporations, Warrant Certificates,
1998-99 Series A, FSA Insured, 4.00% 6/23/00 3.44 3,000 3,006
Kentucky - 2.13%
Asset/Liability Commission General Fund Tax
and Revenue Anticipation Notes, 1999 Series A,
4.25% 6/28/00 3.54 2,400 2,411
Pendleton County, Multi-County Lease Revenue Bonds
(Kentucky Association of Counties Leasing Trust
Program), Series 1989, Money Market Municipal, TECP:
3.35% 10/7/99 3.35 1,785 1,785
3.40% 11/2/99 3.40 1,250 1,250
Louisiana - 0.43%
South Louisiana Port Commission, Port Facility
Revenue Bonds (Holman Inc. Project), Series
1997, AMT, 3.85% 10/6/99* 3.85 1,100 1,100
Maryland - 10.25%
Maryland Health and Higher Education Facilities
Authority, Pooled Loan Program Revenue Notes
(The Johns Hopkins Hospital), Series C, TECP:
3.15% 10/5/99 3.15 1,000 1,000
3.55% 11/15/99 3.55 2,200 2,200
Series D, 3.75% 10/7/99* 3.75 2,485 2,485
Anne Arundel County, Economic Development Revenue
Bonds (Baltimore Gas and Electric Co. Project):
Series 1985:
3.45% 10/6/99 3.45 1,000 1,000
3.50% 11/4/99 3.50 3,000 3,000
Series 1988, AMT:
3.30% 10/4/99 3.30 2,000 2,000
3.40% 10/12/99 3.40 1,500 1,500
3.35% 10/14/99 3.35 2,000 2,000
Montgomery County, Consolidated Commercial Paper
Bond Anticipation Notes, Series 1995, TECP:
3.25% 10/4/99 3.25 4,000 4,000
3.35% 10/15/99 3.35 3,000 3,000
3.45% 11/5/99 3.45 3,000 3,000
Washington Suburban Sanitary District (Montgomery
and Prince George's Counties), Sewage Disposal
Bonds, Series 1993, 5.00% 06/01/00 2.01 1,000 1,009
Massachusetts - 1.17%
"yield at acquisition" reflects current coupon rate.
Revenue Variable Rate Bonds (Lassell Village Project),
Series 1998C, 3.65% 10/6/99* 3.65 3,000 3,000
Michigan - 0.39%
Regents of the University of Michigan, Public Higher
Education Revenue Notes, Series B, TECP,
3.20% 10/20/99 3.20 1,000 1,000
Minnesota - 4.19%
City of Rochester, Health Care Facilities Revenue
Bonds (Mayo Foundation/Mayo Medical Center),
Adjustable Tender, TECP:
Series 1992A:
3.35% 10/18/99 3.35 2,400 2,400
3.30% 10/19/99 3.30 5,700 5,700
Series 1992C, 3.35% 10/20/99 3.35 2,600 2,600
Missouri - 1.41%
Higher Education Loan Authority, Adjustable Rate
Demand Student Loan Revenue Bonds, AMT*:
Series 1990A, 3.90% 10/6/99 3.90 1,600 1,600
Series 1990B, 3.90% 10/6/99 3.90 1,000 1,000
City of Columbia, Special Obligation Insurance
Reserve Bonds, Series 1988A, 3.70% 10/6/99* 3.70 1,000 1,000
New Jersey - 1.29%
Tax and Revenue Anticipation Notes, Series 2000A,
TECP, 3.50% 10/28/99 3.50 3,300 3,300
New York - 1.41%
State Housing Finance Agency, Revenue Bonds
(Saxony Housing), 1997 Series A, AMT 3.75% 10/6/99* 3.75 3,600 3,600
North Carolina - 4.35%
Eastern Municipal Power Agency, TECP, 3.45% 10/6/99 3.45 4,000 4,000
Educational Facilities Finance Agency, Revenue Bonds
(Duke University Project):
Series 1991D, 3.65% 10/7/99* 3.65 1,800 1,800
Series 1992A, 3.65% 10/7/99* 3.65 2,800 2,800
Board of Governors of the University of North Carolina
at Chapel Hill, Athletic Facilities Revenue Bonds,
Series 1998, 3.80% 10/7/99* 3.80 2,500 2,500
Ohio - 5.83%
Water Development Authority, Pollution Control
Revenue Bonds, Series 1988 (Duquesne Light Co.
Project), TECP, AMT, 3.45% 10/29/99 3.45 3,000 3,000
City of Cleveland, Income Tax Revenue Bonds,
3.80% 10/6/99* 3.80 4,500 4,500
County of Hamilton, Hospital Revenue Bonds
(Bethesda Hospital, Inc.), Series 1995, 3.65%
10/7/99* 3.65 2,100 2,100
Ohio State University, Revenue Bonds, Series
1998A, TECP:
3.30% 10/21/99 3.30 2,300 2,300
3.40% 10/25/99 3.40 3,000 3,000
Pennsylvania - 13.15%
Higher Education Assistance Agency Student
Loan Adjustable Rate Revenue Bonds, 1997
Series A, AMT, 3.95% 10/6/99* 3.95 2,000 2,000
Beaver County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds
(Duquesne Light Co. Beaver Valley Project),
1990 Series C, TECP, 3.30% 10/22/99 3.30 3,000 3,000
Carbon County Industrial Development Authority,
Resource Recovery Revenue Bonds (Panther
Creek Partners Project), TECP,AMT:
Series 1990B, 3.40% 10/27/99 3.40 3,000 3,000
Series 1990B, 3.55% 11/12/99 3.55 2,500 2,500
Series 1992A, 3.20% 10/5/99 3.20 4,000 4,000
Delaware County Industrial Development Authority:
Pollution Control Revenue Refunding Bonds (Philadelphia
Electric Co.Project), 1998 Series A, FGIC Insured, TECP:
3.35% 10/7/99 3.35 4,600 4,600
3.35% 10/8/99 3.35 3,500 3,500
3.40% 10/8/99 3.40 2,000 2,000
Solid Waste Revenue Bonds (Scott Paper Co. Project),
Series 1984D, 3.80% 10/6/99* 3.80 1,000 1,000
Montgomery County Industrial Development Authority
Variable Rate Demand Commercial Development
Revenue Bonds (Valley ForgePlaza Associates -
Trasde Shoe Facilities Project),Series T, 3.80%
10/7/99* 3.80 4,000 4,000
Venango Industrial Development Authority,
Resource Recovery Revenue Bonds (Scrubgrass
Project), Series 1990A, TECP, AMT:
3.35% 10/14/99 3.35 2,500 2,500
3.60% 10/26/99 3.60 1,500 1,500
South Carolina - 2.13%
Public Service Authority (Santee Cooper Hydroelectric
Project), Series 1998, TECP, 3.55% 11/1/99 3.55 1,500 1,500
Lexington County Health Service District, Inc.,
Hospital Revenue Refunding and Improvement
Bonds, Series 1997, 4.75% 11/1/99 3.20 1,590 1,591
York County, Pollution Control Facilities Revenue
Refunding Bonds(Duke Power Company Project),
Series 1990, 3.40% 10/18/99 3.40 2,350 2,350
Tennessee - 3.29%
Montgomery County Public Building Authority,
Pooled Financing Revenue Bonds, Series 1997
(Tennessee County Loan Pool), 3.80% 10/7/99* 3.80 8,400 8,400
Texas - 14.33%
Tax and Revenue Anticipation Notes, Series 1999A, 3.72 6,700 6,750
4.50% 8/31/00 Board of Regents of the Texas A&M
University System, Permanent University Fund
Subordinate Lien Notes, Series B, TECP, 3.40%
10/20/1999 3.40 2,800 2,800
Board of Regents of the University of Texas System,
Revenue Financing System Commercial Paper Notes,
Series A, TECP, 3.40% 10/21/99 3.40 2,500 2,500
City of Austin (Travis and Williams Counties),
Combined Utility Systems Notes, Series A, TECP,
3.40% 10/28/99 3.40 1,900 1,900
Brazos Higher Education Authority Inc., Student Loan
Revenue Bonds, Series 1993B-1, AMT, 3.75% 10/6/99* 3.75 1,000 1,000
Brazos River Authority, Collateralized Pollution
Control Revenue Refunding Bonds (Texas Utilities
Electric Co, Project):
Series D, MBIA Insured, AMT, 3.90% 10/6/99* 3.90 3,000 3,000
Series 1994, TECP, AMT, 3.40 10/13/99 3.40 1,500 1,500
City of Brownsville Utility System, Series A, TECP,
3.30% 10/15/99 3.30 1,950 1,950
Harris County General Obligation Notes, Series A,
TECP:
3.45% 10/1/99 3.45 2,315 2,315
3.50% 10/25/99 3.50 1,700 1,700
City of Houston, General Obligation Commercial
Paper Notes, TECP, Series B, 3.25 10/1/99 3.25 2,000 2,000
City of Midlothian Industrial Development Corporation,
Variable Rate Demand Pollution Control Revenue Bonds
(Box-Crow Cement Company Project), 3.75% 10/6/99* 3.75 4,300 4,300
South Texas Higher Education Authority, Inc.,
Student Loan Revenue Bonds, Series 1997,
MBIA Insured, AMT, 3.80% 10/6/99* 3.80 4,900 4,900
Virginia - 4.38%
General Obligation Bond Anticipation Notes,
Series 1998, TECP, 3.20% 10/12/99 3.20 1,700 1,700
Peninsula Ports Authority, Coal Terminal Revenue
Refunding Bonds (Dominion Terminal Associates
Project), Series 1987-B, TECP, 3.30% 10/13/99 3.30 2,100 2,100
City of Hampton, Industrial Development Authority,
Hospital Facilities Revenue Bonds Sentara Health
System Obligated Group), Series 1997B, TECP,
3.55% 10-27-99 3.55 2,900 2,900
City of Norfolk, Industrial Development Authority,
Hospital Revenue Bonds (Sentara Hospitals -
Norfolk Project) Series 1990A, TECO, 3.55% 11/9/99 3.55 4,500 4,500
Washington - 2.67%
Port of Seattle:
Variable Rate General Obligation Bonds,
Series 1985, 3.77% 10/6/99* 3.77 3,000 3,000
Subordinate Lien Revenue Notes, Series A, TECP:
3.40% 10/1/99 3.40 2,310 2,310
2.80% 11/3/99 3.40 1,500 1,500
West Virginia - 0.63%
The County Commission of Marion County, Solid
Waste Disposal Facility Revenue Bonds, 1990
Series A (Grant Town Cogeneration Project),
AMT, 3.85% 10/6/99* 3.85 1,600 1,600
Wisconsin - 5.60%
General Obligation Bonds, Series 1998A, TECP, 3.55 2,631 2,631
3.55% 10/29/99 Health and Educational Facilities
Authority, Variable Rate Demand Revenue Bonds
(Felican Services, Inc. Obligated Group), Series
1997A, AMBAC Insured, 3.80 10/6/99* 3.80 5,000 5,000
Transportation Revenue Commercial Paper Notes
of 1997, Series A, TECP:
Series A, TECP:
3.35% 10/8/99 3.35 1,000 1,000
2.50% 11/4/99 3.50 2,305 2,305
3.5% 11/10/99 3.50 3,363 3,363
Wyoming - 1.02%
Tax and Revenue Anticipation Notes, Series 1999,
4.00% 6/27/00 3.30 1,600 1,603
Sweetwater County Pollution Control Revenue
Bonds (PacificCorp Projects), Series 1988A,
TECP, 3.40% 10/4/99 3.40 1,000 1,000
----------
Total Tax-Exempt Securities (cost: $256,624,000)
Excess of payables over cash and receivables 256,611
(1,171)
----------
255,440
NET ASSETS ======
* Coupon rate may change periodically;
"yield at acquisition" reflects current coupon rate.
</TABLE>
<TABLE>
The Tax-Exempt Money Fund of America
Financial Statements
<S> <C> <C>
- --------------------------------- ------------ ------------
Statement of Assets and Liabilities (dollars in
at September 30, 1999 thousands)
- --------------------------------- ------------ ------------
Assets:
Investment securities at market
(cost: $256,624) $256,611
Cash 248
Receivables for--
Sales of fund's shares $648
Accrued interest 906 1,554
------------ ------------
258,413
Liabilities:
Payables for--
Purchases of investments 1,011
Repurchases of fund's shares 1,826
Dividends payable 31
Management services 86
Accrued expenses 19 2,973
------------ ------------
Net Assets at
September 30, 1999 --
Equivalent to $1.00 per share on
255,515,417 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $255,440
=============
Statement of Operations
for the year ended September 30, 1999 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $7,148
Expenses:
Management services fee $1,003
Distribution expenses 109
Transfer agent fee 153
Reports to shareholders 15
Registration statement
and prospectus 82
Postage, stationery
and supplies 54
Trustees' fees 15
Auditing and legal fees 34
Custodian fee 63
Taxes other than federal income tax 3
Other expenses 14
------------
Total expenses before
reimbursement 1,545
Reimbursement of expenses 56 1,489
------------ ------------
Net investment income 5,659
------------
Change in Unrealized Appreciation
(Depreciation) on Investments:
Net unrealized appreciation
(Depreciation) on investments:
Beginning of year 46
End of year (13)
------------
Net change in unrealized
appreciation (depreciation)
on investments (59)
------------
Net Increase in Net Assets
Resulting from Operations $5,600
============
Statement of Changes in Net Assets
(dollars in thousands)
- --------------------------------- ------------- -------------
Year ended September 30
1999 1998
Operations: ------------- -------------
Net investment income $5,659 $5,296
Net change in unrealized
appreciation (depreciation)
on investments (59) 37
------------- -------------
Net increase in net
assets resulting
from operations 5,600 5,333
------------- -------------
Dividends Paid to Shareholders (5,698) (5,316)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
475,331,901 and 373,325,429
373,325,429 shares,
respectively 475,332 373,325
Proceeds from shares issued
in reinvestment of net
investment income
dividends 5,248,578
and 4,856,600 shares,
respectively 5,249 4,857
Cost of shares repurchased:
423,236,513 and
339,912,546 shares
respectively (423,237) (339,912)
------------- -------------
Net increase in net assets
resulting from capital
share transactions 57,344 38,270
------------- -------------
Total Increase in Net Assets 57,246 38,287
Net Assets:
Beginning of year 198,194 159,907
------------- -------------
End of year $255,440 $198,194
============= ==============
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
NET ASSET VALUE - 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.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from a pricing service, when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type. The ability of the
issuers of the debt securities held by the fund to meet their obligations may
be affected by economic developments in a specific industry, state or region.
Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. Securities and assets for which representative
market quotations are not readily available are valued at fair value as
determined in good faith by a committee appointed by the Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Interest income is
recognized on an accrual basis. Market discounts, premiums, and original issue
discounts on securities purchased are amortized daily over the expected life of
the security.
DIVIDENDS TO SHAREHOLDERS - Dividends to shareholders are declared daily
after the determination of the fund's net investment income and are paid to
shareholders monthly.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code applicable
to regulated investment companies and intends to distribute all of its net
taxable income for the fiscal year. As a regulated investment company, the
fund is not subject to income taxes if such distributions are made. Required
distributions are determined on a tax basis and may differ from net investment
income for financial reporting purposes. In addition, the fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund.
As of September 30, 1999, net unrealized depreciation on investments for book
and federal income tax purposes aggregated $13,000, of which $3,000 related to
appreciated securities and $16,000 related to depreciated securities. The cost
of portfolio securities for book and federal income tax purposes was
$256,624,000 at September 30, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $1,003,000 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 in effect through
October 1, 1999, provided 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 also provided 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 had 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 $56,000 for the year ended September 30, 1999.
The Board of Trustees approved an amended agreement effective October 2,
1999, reducing the fees to 0.39% of the first $200 million of average net
assets; 0.37% of such assets in excess of $200 million but not exceeding $600
million; 0.33% of such assets in excess of $600 million but not exceeding $1.2
billion; and 0.29% of such assets in excess of $1.2 billion.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution with American
Funds Distributors, Inc. (AFD), the fund may expend up to 0.15% of its average
net assets annually for any activities primarily intended to result in sales of
fund shares, provided the categories of expenses for which reimbursement is
made are approved by the fund's Board of Trustees. Fund expenses under the Plan
include payments to dealers to compensate them for their selling and servicing
efforts. During the year ended September 30, 1999, distribution expenses under
the Plan were $109,000. As of September 30, 1999, accrued and unpaid
distribution expenses were $7,000.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $153,000.
DEFERRED TRUSTEES' FEES - Trustees who are unaffiliated with CRMC may
elect to defer part or all of the fees earned for services as members of the
Board. Amounts deferred are not funded and are general unsecured liabilities of
the fund. As of September 30, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993), net of any
payments to Trustees, were $11,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, including
maturities of $1,277,000,000 and $1,217,379,000, respectively, during the year
ended September 30, 1999.
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 $63,000 includes $4,000 that was paid by these credits
rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Year ended September 3
-----------------------------------
1999 1998 1997
-----------------------------------
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00
-----------------------------------
Income from Investment Operations:
Net investment income .025 .029 .029
-----------------------------------
Total from investment operations .025 .029 .029
-----------------------------------
Less Distributions:
Dividends (from net investment income) (.025) (.029) (.029)
-----------------------------------
Total distributions (.025) (.029) (.029)
-----------------------------------
Net Asset Value, End of Year $1.00 $1.00 $1.00
========== ========== ============
Total Return 2.51% 2.97% 2.94%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $255 $198 $160
Ratio of expenses to average net assets -- 0.68% .71% .74%
before fee waiver
Ratio of expenses to average net assets -- 0.65% .65% .65%
after fee waiver
Ratio of net income to average net assets 2.33% 2.94% 2.94%
1996 1995
------------------------
Net Asset Value, Beginning of Year $1.00 $1.00
------------------------
Income from Investment Operations:
Net investment income .029 .031
------------------------
Total from investment operations .029 .031
------------------------
Less Distributions:
Dividends (from net investment income) (.029) (.031)
------------------------
Total distributions (.029) (.031)
------------------------
Net Asset Value, End of Year $1.00 $1.00
========== ============
Total Return 2.91% 3.14%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $144 $150
Ratio of expenses to average net assets -- .77% .75%
before fee waiver
Ratio of expenses to average net assets -- .65% .65%
after fee waiver
Ratio of net income to average net assets 2.88% 3.09%
</TABLE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of The Tax-Exempt Money Fund of
America:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Tax-Exempt Money Fund of
America(the "Fund") at September 30, 1999, the results of its operations, the
changes in its net assets and the per-share data and ratios for the years
indicated, in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at September 30, 1999 by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
October 29, 1999
1999 Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. All of the dividends paid from net
investment income qualify as exempt-interest dividends.
Dividends received by retirement plans such as IRAs, Keogh-type plans and
403(b) plans need not be reported as taxable income. However, many retirement
plan trusts may need this information for their annual information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2000 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 1999 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
SHAREHOLDER SERVICES
AMERICAN FUNDSLINE(R)
[illustration: telephone]
Use our 24-hour automated phone system for fund information and transactions.
FUNDSLINE ONLINE(R)
[illustration: computer desktop]
Visit our Web site when you want to access your account, download a prospectus,
or find fund information.
REDUCED SALES CHARGE
illustration: coins]
Larger purchases may qualify for a reduced sales charge. To help reach a
breakpoint, you may -
- - Add your present purchase to the value of all eligible household accounts
and/or
- - Add your present purchase to purchases you intend to make over 13 months
Assets in money market funds generally do not apply when determining sales
charges.
RETIREMENT PLANS
[illustration: crossroads sign]
A wide range of fund choices for individual and company-sponsored retirement
plans.
AMERICAN FUNDSLINK(SM)
[illustration: bank building electrically linked to building]
Link your fund account to your bank account for direct transfers between the
two and to purchase shares using American FundsLine or FundsLine OnLine.
AUTOMATIC TRANSACTIONS
[illustration: calendar]
Use this service when you want to purchase, sell and exchange shares on a
regular basis.
FLEXIBLE DIVIDEND OPTIONS
[illustration: person choosing and allocating dollars]
Use your dividend and capital gain distributions to meet your changing needs.
You may -
* Invest dividends and capital gain distributions back into the fund
* Diversify by investing dividends and capital gain distributions into another
American Fund
* Take dividends in cash
* Have dividends paid directly to someone else
Because certain transactions have restrictions or tax consequences, please
consult your financial adviser before requesting changes.
WOULD YOU LIKE MORE INFORMATION?
Your financial adviser will be happy to explain these services in greater
detail, or you may contact American Funds Service Company.
To contact American Funds Service Company:
Shareholder Services Representative - 8 a.m. to 8 p.m. Eastern time -
800/421-0180
American FundsLine - 24-hour automated telephone 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
United States, please write to the Western service center.)
[illustration: map of the United States separated into regions]
WESTERN
American Funds Service Company
P.O. Box 2205
Brea, CA 92822-2205
WEST CENTRAL
American Funds Service Company
P.O. Box 659522
San Antonio, TX 78265-9522
EAST CENTRAL
American Funds Service Company
P.O. Box 6007
Indianapolis, IN 46206-6007
EASTERN
American Funds Service Company
P.O. Box 2280
Norfolk, VA 23501-2280
Please obtain the applicable prospectuses from your financial adviser or our
Web site and read them carefully before investing or sending money. American
Funds reserves the right to terminate or modify these services.
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
BOARD OF TRUSTEES
AMBASSADOR RICHARD G. CAPEN, JR.
Rancho Santa Fe, California
Corporate director and author;
former United States Ambassador to Spain;
former Vice Chairman of the Board, Knight-Ridder, Inc.;
former Chairman of the Board and Publisher, The Miami Herald
H. FREDERICK CHRISTIE
Rolling Hills Estates, California
Private investor; former President and Chief Executive Officer,
The Mission Group; former President, Southern California Edison Company
DON R. CONLAN, South Pasadena, California
President (retired), The Capital Group Companies, Inc.
DIANE C. CREEL, Long Beach, California
President and Chief Executive Officer,
The Earth Technology Corporation
(international consulting engineering)
MARTIN FENTON, San Diego, California
Managing Director, Senior Resource Group, LLC
(development and management of senior living communities)
LEONARD R. FULLER, Marina del Rey, California
President, Fuller Consulting (financial management consulting firm)
ABNER D. GOLDSTINE, Los Angeles, California
President of the funds
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR., Los Angeles, California
Chairman of the Boards
Executive Vice President and Director,
Capital Research and Management Company
HERBERT HOOVER III, San Marino, California
The Tax-Exempt Money Fund of America
Private investor
RICHARD G. NEWMAN, Los Angeles, California
Chairman of the Board, President and Chief
Executive Officer, AECOM Technology Corporation
(architectural engineering)
FRANK M. SANCHEZ, Los Angeles, California
Chairman of the Board and Chief Executive Officer,
The Sanchez Family Corporation dba McDonald's Restaurants (McDonald's licensee)
HERBERT HOOVER III, a Trustee of The Cash Management Trust of America since
1977 and The U.S. Treasury Money Fund of America since 1991, has retired. (He
remains a Trustee of The Tax-Exempt Money Fund of America.) The Trustees thank
him for his many contributions to the funds.
OTHER OFFICERS
NEIL L. LANGBERG, Los Angeles, California
Senior Vice President,
The Tax-Exempt Money Fund of America
Vice President - Investment Management Group,
Capital Research and Management Company
TERESA S. COOK, Los Angeles, California
Vice President,
The Cash Management Trust of America and
The U.S. Treasury Money Fund of America
Senior Vice President - Investment Management Group,
Capital Research and Management Company
MICHAEL J. DOWNER, Los Angeles, California
Vice President of the funds
Senior Vice President - Fund Business Management Group,
Capital Research and Management Company
KAREN F. HALL, Los Angeles, California
Assistant Vice President,
The Cash Management Trust of America and
The U.S. Treasury Money Fund of America
Vice President - Investment Management Group,
Capital Research and Management Company
JULIE F. WILLIAMS, Los Angeles, California
Secretary of the funds
Vice President - Fund Business Management Group,
Capital Research and Management Company
ANTHONY W. HYNES, Jr., Brea, California
Treasurer of the funds
Vice President - Fund Business Management Group,
Capital Research and Management Company
KIMBERLY S. VERDICK, Los Angeles, California
Assistant Secretary of the funds
Assistant Vice President - Fund Business Management Group,
Capital Research and Management Company
TODD L. MILLER, Brea, California
Assistant Treasurer of the funds
Assistant Vice President - Fund Business Management Group,
Capital Research and Management Company
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 92821-5823
TRANSFER AGENT FOR
SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
400 South Hope Street
Los Angeles, California 90071-2889
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 December 31, 1999, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Printed on recycled paper
Litho in USA CD/GRS/4391
Lit. No. MMF-011-1199
[The American Funds Group(r)]
PREPARING FOR THE YEAR 2000
The fund's key service providers-Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all computer systems to process date-related information properly
following the turn of the century. Other preparations continue, including
external monitoring and contingency planning. If you'd like more detailed
information, call Shareholder Services at 800/421-0180, ext. 21, or visit our
Web site at www.americanfunds.com.
For information about your account or any of the funds' services, please
contact your financial adviser. You may also call American Funds Service
Company, toll-free, at 800/421-0180, or visit www.americanfunds.com on the
World Wide Web.
