THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
SEMI-ANNUAL REPORT
for the six months ended March 31, 1996
[The American Funds Group(r)]
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in high-quality money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA(SM) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality municipal securities maturing in one year or less.
FOR CURRENT YIELDS, PLEASE CALL AMERICAN FUNDSLINE(R) TOLL-FREE AT
800/325-3590; PRESS 1 FOR YIELD INFORMATION.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. THE RETURN ON AN INVESTMENT IN
THESE FUNDS WILL VARY. FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
INSURED OR GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE
FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
There can be no assurance that the funds' net asset values will remain constant
at $1.00. Income from The Tax-Exempt Money Fund of America may be subject to
state or local income taxes and/or federal alternative minimum taxes. Certain
other income, as well as capital gain distributions, may be taxable. Results
for The Tax-Exempt Money Fund of America reflect the effect of a fee waiver.
Without the waiver, the results would have been lower.
FELLOW SHAREHOLDERS:
As most of the country experienced a memorably long and cold winter, continued
low inflation and efforts to stimulate sluggish economic growth resulted in
declining short-term interest rates during most of the recent fiscal period. As
a result, yields of our money market funds during the past six months dropped
below the average for the previous six months.
In December and again in January, the Federal Reserve Board attempted to
stimulate growth by cutting the federal funds rate (the rate at which banks
lend to each other) by 0.25% each time. This had a direct impact on money
market yields. Since that time, reports that job creation and economic activity
were growing faster than anticipated have dampened expectations that the Fed
will cut rates again soon. Intermediate and long-term rates have climbed
sharply. Short-term rates, however, which declined until early February, rose
only modestly in March, the last month of the fiscal half-year.
Here are the results for each of our money market funds over the six months
ended March 31.
THE CASH MANAGEMENT TRUST OF AMERICA provided shareholders who reinvested their
dividends with a six-month income return of 2.58%, or an annualized rate of
5.16%.
THE U.S. TREASURY MONEY FUND OF AMERICA'S six-month income return was 2.34%,
including reinvested dividends, or 4.68% at an annual rate. This income is
exempt from state and local taxes in most states.
THE TAX-EXEMPT MONEY FUND OF AMERICA produced a federally tax-free income
return over the six-month period of 1.47% for shareholders who reinvested
dividends, or 2.94% at an annualized rate. Investors in the maximum 39.6%
federal tax bracket would have to earn a taxable return of 2.43% (4.86%
annualized) to match the fund's federally tax-free income return. In the 36%
tax bracket, the taxable equivalent would be 2.30% (4.60% annualized). A
portion of the fund's income may also be exempt from tax in some states.
The chart at left shows the quarterly pattern of yields on our three money
market funds over the past four years. While money market fund yields move up
and down with open market short-term rates, they can be an excellent source of
investment stability. Although these funds carry no price guarantee, they are
managed to maintain a net asset value of $1.00 a share. In contrast to stock
and bond funds, which fluctuate daily, this stability makes money market funds
an important tool in financial planning (see box below).
It is important to note that throughout the last 12 months, a period of
relatively low yields, all three of our money market funds outpaced the 2.84%
annualized increase in the Consumer Price Index, which measures changes in the
cost of living. Helping you maintain purchasing power is one of our main goals.
As assets in our three funds continue to grow, we would like to thank you for
trusting us to select the highest quality money market securities available and
to monitor your investments in these funds carefully.
Cordially,
Paul G. Haaga, Jr.
Chairman of the Boards
Abner D. Goldstine
President
May 15, 1996
WHETHER YOU ARE INVESTING FOR A HOME, A VACATION, A COLLEGE EDUCATION OR A
SECURE RETIREMENT, MONEY MARKET FUNDS CAN BE AN IMPORTANT PART OF A DIVERSIFIED
INVESTMENT PORTFOLIO. Here are three key roles a money market fund can play:
- - A STARTING POINT FOR REGULAR INVESTMENTS. Your money market fund can be set
up to make regular purchases of other mutual funds, allowing you to
conveniently diversify your investment portfolio.
- - AN EMERGENCY CASH RESERVE. Money market funds let you earn income on cash
reserves and easily redeem your assets by mail, telephone, systematic
withdrawals, electronic bank deposits and free check-writing privileges.
- - A SOLID FOUNDATION FOR YOUR FINANCIAL PROGRAM. You may choose to hold a
percentage of your financial assets in a money market fund for the preservation
of capital and the steady income it can provide.
<TABLE>
The U.S. Treasury Money Fund of America Unaudited
Investment Portfolio
March 31, 1996
Principal Market
Yield at Amount Value
Acquisition (000) (000)
- ------------------------------------------------ ------------- ------- -------------
<S> <C> <C> <C>
U.S. Treasury Securities - 99.87%
U.S. Treasury bills 4/4/96 5.03% - 5.08% $ 38,145 $ 38,124
U.S. Treasury bills 4/11/96 5.02% - 5.09% 26,875 26,836
U.S. Treasury bills 4/18/96 4.91% - 5.15% 53,620 53,487
U.S. Treasury bills 4/25/96 4.97% - 5.21% 25,940 25,849
U.S. Treasury bills 5/2/96 4.84% - 4.94% 52,280 52,053
U.S. Treasury bills 5/9/96 4.84% - 4.87% 4,310 4,287
U.S. Treasury bills 5/16/96 4.84% 19,200 19,078
U.S. Treasury bills 5/23/96 4.83% - 5.02% 13,040 12,944
U.S. Treasury bills 5/30/96 4.96% - 5.10% 3,635 3,605
-------------
Total Investment Securities
(cost $236,269,000) 236,263
Excess of cash, prepaid expenses, 308
and receivables over payables -------------
Net Assets $236,571
=============
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, 1996 (dollars in thousands)
- ---------------------------------------- ------------ ------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $236,269) $236,263
Cash 410
Receivables for --
Sales of fund's shares 1,134
------------
237,807
Liabilities:
Payables for --
Repurchases of fund's shares $865
Dividends payable 45
Management services 61
Accrued expenses 265 1,236
------------ ------------
Net Assets at March 31, 1996 --
Equivalent to $1.00 per share on
236,577,441 shares of beneficial
interest issued and outstanding;
unlimited shares authorized $236,571
=============
Statement of Operations Unaudited
for the six months ended March 31, 1996 (dollars in thousands)
------------ ------------
Investment Income:
Income:
Interest $ 5,996
Expenses:
Management services fee $342
Distribution expenses 95
Transfer agent fee 121
Reports to shareholders 3
Registration statement and prospectus 82
Postage, stationery and supplies 27
Trustees' Fees 7
Auditing and legal fees 35
Custodian fee 6
Taxes other than federal income tax 5
Organization expense 2
Other expenses 15 740
------------
740
Reimbursement of expenses 0
------------ ------------
Net investment income 5,256
------------
Unrealized Depreciation
on Investments:
Net unrealized
depreciation on investments:
Beginning of period (33)
End of period (6)
------------
Net change in unrealized depreciation
on investments 27
------------
Net Increase in Net Assets Resulting
from Operations $5,283
============
Statement of Changes in Net
Assets (dollars in thousands)
- ---------------------------------------- ------------- -------------
Six months Year ended
ended
3/31/96 * 9/30/95
Operations: ------------- -------------
Net investment income 5,256 $ 10,211
Net change in unrealized depreciation
on investments 27 (64)
------------- -------------
Net increase in net assets
resulting from operations 5,283 10,147
------------- -------------
Dividends Paid to Shareholders (5,256) (10,211)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold:
189,311,078 and 374,035,452
shares, respectively 189,311 374,035
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
4,990,143 and 9,566,991 shares,
respectively 4,990 9,567
Cost of shares repurchased:
188,908,726 and 351,365,008
shares, respectively (188,909) (351,365)
------------- -------------
Net increase in net assets resulting
from capital share transactions 5,392 32,237
------------- -------------
Total Increase in Net Assets 5,419 32,173
Net Assets:
Beginning of period 231,152 198,979
------------- -------------
End of period $236,571 $231,152
============= =============
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements Unaudited
1. The U.S. Treasury Money Fund of America (the "fund") is registered under
the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income on cash reserves, while
preserving capital and maintaining liquidity, through investments in U.S.
Treasury securities maturing in one year or less. The following paragraphs
summarize the significant accounting policies consistently followed by the fund
in the preparation of its financial statements:
The fund uses the penny-rounding method of valuing its shares, in
accordance with Securities and Exchange Commission (SEC) rules. This method
permits the fund to maintain a constant net asset value of $1.00 per share,
provided the market value of the fund's shares does not deviate from $1.00 by
more than one-half of 1% and the fund complies with other restrictions set
forth in the SEC rules.
Portfolio securities with 60 days or less to maturity are valued at
amortized cost, which approximates market value. Portfolio securities with
original or remaining maturities in excess of 60 days are valued at prices
obtained from a bond-pricing service provided by a major dealer in bonds, when
such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean of their representative quoted bid and asked prices or, if such prices are
not available, at the mean of such prices for securities of comparable
maturity, quality and type. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Interest income is reported on the accrual basis. Dividends are declared
daily after the determination of the fund's net investment income and are paid
to shareholders monthly. Discounts and premiums on securities purchased are
amortized over the life of the respective securities.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of March 31, 1996, unrealized depreciation for book and federal income
tax purposes aggregated $6,000, of which $4,000 related to appreciated
securities and $10,000 related to depreciated securities. There was no
difference between book and tax realized gains on securities transactions for
the six months ended March 31, 1996. The cost of portfolio securities for book
and federal income tax purposes was $236,269,000 at March 31, 1996.
3. The fee of $342,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Trustees of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% for the first $800 million of average net assets and
0.285% on the portion of such assets in excess of $800 million. The Investment
Advisory and Service Agreement provides for fee reductions to the extent that
annual operating expenses exceed 0.75% of the average daily net assets of the
fund during a period which will terminate at the earlier of such time as no
reimbursement has been required for a period of 12 consecutive months, provided
no advances are outstanding, or February 1, 2001. CRMC has also voluntarily
agreed to waive its fees to the extent necessary to ensure that the fund's
expenses do not exceed 0.675% of the average daily net assets. Expenses that
are not subject to these limitations are interest, taxes, brokerage
commissions, transaction costs and extraordinary expenses. There can be no
assurance that this voluntary fee waiver will continue in the future. For the
six months ended March 31, 1996, no fees were waived.
Pursuant to a Plan of Distribution with American Funds Distributors, Inc.
(AFD), the fund may expend up to 0.15% of its average net assets annually for
any activities primarily intended to result in sales of fund shares, provided
the categories of expenses for which reimbursement is made are approved by the
fund's Board of Trustees. Fund expenses under the Plan include payments to
dealers to compensate them for their selling and servicing efforts. During the
six months ended March 31, 1996, distribution expenses under the Plan amounted
to $95,000. As of March 31, 1996, accrued and unpaid distribution expenses were
$14,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $121,000 under the terms of a contract that provides for transfer
agency services to be performed for the fund.
Trustees of the fund who are unaffiliated with CRMC may elect to defer
part or all of the fees earned for services as members of the Board. Amounts
deferred are not funded and are general unsecured liabilities of the fund. As
of March 31, 1996 aggregate amounts deferred and earnings thereon were $12,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. The fund made purchases and sales of investment securities of $572,936,000
and $567,224,000, respectively, during the six months ended March 31, 1996.
<TABLE>
PER-SHARE DATA AND RATIOS
- ------------------------------ -------- -------- -------- -------- -------- --------
Six months Year ended September 30 For the period
ended -------- -------- -------- -------- 2/1/91 2 to
3/31/96 1 1995 1994 1993 1992 9/30/91
-------- -------- -------- -------- -------- --------
<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 .048 .028 .025 .036 .035
Total income from investment -------- -------- -------- -------- -------- --------
operations .023 .048 .028 .025 .036 .035
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income (.023) (.048) (.028) (.025) (.036) (.035)
-------- -------- -------- -------- -------- --------
Total distributions (.023) (.048) (.028) (.025) (.036) (.035)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ======== ========
Total Return 2.34% 3 4.89% 2.89% 2.49% 3.61% 3.52% 3
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $237 $231 $199 $140 $106 $59
Ratio of expenses to average
net assets .32% 3 .67% .67% .61% .68% .68% 4
Ratio of net income to
average net assets 2.29% 3 4.79% 2.91% 2.43% 3.51% 4.77% 4
1 Unaudited
2 Commencement of operations
3 Based on operations for the
period shown and, accordingly,
not representative of a full year's
operations.
4 Annualized
</TABLE>
OFFICES OF THE FUNDS AND OF THE
INVESTMENT ADVISER,
CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster LLP
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUNDS' SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUNDS'
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the funds. If used as
sales material after June 30, 1996, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
[The American Funds Group(r)]
Litho in U.S.A. AGD/CG/2953
Lit. No. MMF-013-0596
Printed on recycled paper
