[THE AMERICAN FUNDS GROUP(R)]
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
1998 ANNUAL REPORT FOR THE YEAR ENDED JULY 31
[COVER PHOTO: tropical sunset]
TAKING THE MIDDLE PATH
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA(SM) seeks an opportunity for
current income exempt from federal income taxes, consistent with preservation
of capital, through investments in tax-exempt securities with effective
maturities between three and 10 years.
Limited Term Tax-Exempt Bond Fund of America is one of the 28 mutual funds in
The American Funds Group,(r) managed by Capital Research and Management
Company. Since 1931, Capital has invested with a long-term focus based on
thorough research and attention to risk.
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 - are updating their computer systems to
process date-related information properly following the turn of the century.
Both are on track to complete modifications of significant internal systems by
the end of 1998. Testing with business partners, vendors and other service
providers is already under way. We will continue to keep you up-to-date in our
regular publications. If you'd like more detailed information, contact
Shareholder Services at 800/421-0180, ext. 21, or visit our Web site at
www.americanfunds.com.
ABOUT OUR COVER:
Limited Term Tax-Exempt Bond Fund of America takes a middle path. It works to
provide more income than short-term tax-exempt securities, with less price
fluctuation than longer term bonds.
CHARTING A $10,000 INVESTMENT IN
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
(for the period since the fund's inception on October 6, 1993 to July 31, 1998,
with dividends reinvested)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Date The fund at The fund at net Lehman Brothers Lipper
maximum offering asset value 7-Year Intermediate
price* (without any Municipal Bond Index Municipal Fund
sales charge) Average
10/6/93 $9,525 $10,000 $10,000 $10,000
10/31/93 9,689 10,171 10,026 10,021
1/31/94 9,976 10,472 10,228 10,230
4/30/94 9,573 10,049 9,810 9,779
7/31/94 9,728 10,211 9,979 9,951
10/31/94 9,616 10,094 9,836 9,774
1/31/95 9,732 10,215 10,024 9,976
4/30/95 10,050 10,550 10,384 10,309
7/31/95 10,355 10,870 10,786 10,612
10/31/95 10,604 11,131 11,051 10,881
1/31/96 10,833 11,371 11,341 11,165
4/30/96 10,768 11,304 11,171 10,991
7/31/96 10,914 11,456 11,333 11,161
10/1/96 11,317 11,691 11,565 11,372
1/31/97 11,262 11,821 11,764 11,535
4/30/97 11,325 11,888 11,768 11,562
7/31/97 11,782 12,368 12,309 12,072
10/31/97 11,883 12,474 12,424 12,157
1/31/98 12,138 12,741 12,753 12,468
4/30/98 12,133 12,735 12,691 12,411
7/31/98 12,365 12,979 12,956 12,647
</TABLE>
$12,979
The fund at net asset value
(without sales charge)
$12,956
Lehman Brothers 7-Year
Municipal Bond Index
$12,647
Lipper Intermediate Municipal Fund Average
$12,365*
The fund at maximum sales charge
*This figure reflects payment of the maximum sales charge of 4.75% on the
$10,000 investment. Thus, the net amount invested was $9,525. As outlined in
the prospectus, the sales charge is reduced for larger investments.
The Lehman Brothers index is unmanaged and has no expenses.
Past results are not predictive of future results.
Returns After Deducting the Maximum Sales Charge
Periods ended 6/30/98 Periods ended 7/31/98
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Average Average
Total Annual Total Annual
Return Compound Return Compound
Return Return
Lifetime +23.30% +4.53% +23.66% +4.51%
(since
10/6/93)
One Year +1.60 - - 0.05 -
</TABLE>
All results in this report reflect the effect of a contractual fee waiver.
Without the waiver, the results would have been lower. The fund's 30-day yield
as of August 31, 1998, calculated in accordance with the Securities and
Exchange Commission formula, was 3.73%.* The fund's distribution rate as of
that date was 4.06%.*
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. 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. Income 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.
*The SEC yield reflects income the fund expects to earn based on its current
portfolio of securities, while the fund's distribution rate is based solely on
the fund's past dividends. Accordingly, the fund's SEC yield and distribution
rate may differ.
FELLOW SHAREHOLDERS
Over the fiscal year ended July 31, Limited Term Tax-Exempt Bond Fund of
America continued to provide you with much of the tax-free income of longer
term bond funds with less price volatility. It also outpaced the average
intermediate municipal bond fund and led its relevant benchmarks over its
lifetime.
The fund's monthly dividends totaled 65.6 cents a share, all exempt from
federal income taxes. This represented an income return of 4.4% if you took
dividends in cash and 4.5% if you reinvested in additional fund shares. To
match a 4.5% tax-free income return, a shareholder in the top federal tax
bracket of 39.6% would have had to earn 7.5% from a taxable investment.
In addition, a rise in the value of a number of the fund's holdings nudged the
share price to $14.85 on July 31, from $14.79 at the start of the fiscal year.
This gain, combined with the fund's income return, produced a total return of
4.9% if you reinvested dividends, as most shareholders do.
During the same period, the average intermediate municipal bond fund gained
4.6%, according to Lipper Analytical Services. The unmanaged Lehman Brothers
7-Year Municipal Bond Index (which pays no expenses) rose 5.3%, but trails the
fund over its lifetime (see Investment Highlights on page 3).
A CAUTIOUS STRATEGY WITH A RECORD OF STRONG RESULTS
Limited Term Tax-Exempt Bond Fund of America has tended to own bonds with
shorter maturities than many funds of its kind - a conservative approach which
attempts to preserve capital. The shorter a bond's maturity, the less its price
typically fluctuates with changes in interest rates.
This strategy has helped the fund when interest rates have climbed. Of course,
when interest rates have fallen, funds with longer maturities often outpaced
Limited Term Tax-Exempt Bond Fund. Such is the teeter-totter nature of bonds.
The fund's lifetime results, however, show how the portfolio counselors'
choices have benefited the fund. It leads both of its benchmarks and falls
within the top third of its competition, while offering an above-average
12-month yield, as calculated by Lipper.
INVESTMENT APPROACH IN 1998
INCREASED CREDIT QUALITY. During the fiscal year, the "spread" between the
yields of bonds of differing quality narrowed. Without the additional yield to
compensate for the increased risk of lower rated bonds, incentive to purchase
them diminished. We found a greater number of values at the higher quality end
of the risk spectrum, including many AAA-rated bonds. These purchases increased
the A-rated and above portion of the fund's portfolio to nearly 75%.
The fund also enjoyed many "quality upgrades" throughout the year. The fund's
research analysts seek out issuers that stand to benefit from anticipated
strengthening of municipal and state economies. This research was rewarded
during the period when many issuers received higher ratings from independent
ratings agencies such as Moody's and Standard & Poor's.
GREATER DIVERSIFICATION. Seeking refuge from stock market volatility and
economic and currency troubles around the world, investors fled to the relative
quality of the fixed-income markets. This spike in demand helped drive interest
rates to 20-year lows. Much like the consumers who decided to buy new homes or
refinance their mortgages, debt issuers moved into the market in record numbers
to lock in low rates, increasing the supply of bonds at all quality levels. The
fund's portfolio counselors took this opportunity to further diversify. The
number of debt issues grew by 33% from 105 to 140 and now includes seven
additional states.
LOOKING AHEAD
It is difficult to tell what long-term effect the economic troubles in Asia,
Russia and elsewhere will have on U.S. businesses and our economy. Calendar
1998 has seen the most significant drops in U.S. and non-U.S. stock markets
since 1990. Such turbulence often increases the demand for more conservative
fixed-income securities, which has been the case this year. This has raised the
value of some bonds, but also has helped keep yields low. Continued U.S. growth
and tame inflation, combined with the pressure of global economic troubles, may
suggest that the Federal Reserve Board is unlikely to raise short-term interest
rates and could find cause to lower them. As always, we will continue to
monitor global events and make appropriate adjustments as we believe necessary.
Holding a fixed-income investment such as Limited Term Tax-Exempt Bond Fund in
your portfolio may have been especially comforting during recent stock market
turbulence. The feature which begins on page 2 reviews why bonds and bond funds
can be such an important part of a well-diversified portfolio. We hope you find
it of interest.
Cordially,
/s/Paul G. Haaga, Jr. /s/Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Board President
September 15, 1998
WHY BOND FUNDS CAN MAKE A DIFFERENCE
WHY BONDS?
With global stock markets on a bumpy roller coaster ride, investor interest in
bonds and fixed-income securities is growing. The opportunities that such
investments offer, however, can make a difference during any market conditions.
Let's review the potential benefits of bonds, bond funds and specifically your
fund, Limited Term Tax-Exempt Bond Fund of America.
STABILITY. Bonds have tended to be more stable than stocks. Why? Even though
bonds fluctuate in value, they produce income in the form of interest payments
or yield. Plus, assuming the issuer does not default, a bond's principal is
repaid when it matures. Stocks come with no such assurances.
DIVERSIFICATION. You should probably not put all of your nest egg in one kind
of asset. Diversification into bonds helps buffer a portion of your portfolio
from stock market declines. Bonds have outpaced stocks in every major stock
market decline of 15% or more in the past 25 years.* With that in mind, as you
grow closer to the time when you need to use your investments, you may want to
increase your bond holdings.
INCOME. Bonds can provide consistent income, and with inflation at historic
lows even today's relatively low bond yields are meaningful. Bonds can do more
than help you keep up with inflation. Over time, with the help of compounding
interest, a bondholder who reinvests can help build a nest egg, not just
maintain one.
WHY BOND FUNDS?
Investors who hold individual bonds will most likely recognize the benefits
mentioned above. Investing in a fixed-income mutual fund provides additional
advantages.
DIVERSIFICATION AMONG BONDS. Within the guidelines set out in its objective, a
bond mutual fund can buy many different securities. Generally, the bonds differ
by geographical region, type of issuer (sometimes called sectors), credit
rating, coupon, maturity and yield. Spreading the fund's portfolio across a
wide variety of bonds can help protect shareholders should a single bond
default or one category suffer losses.
RESEARCH. Exacting research is critical to building a strong fixed-income
portfolio. Analysts and portfolio counselors must determine how to balance
shareholders' investments among the many types of bonds available. Careful
study is particularly important when choosing lower rated bonds, which can
offer a higher yield but entail more risk. Most investors cannot get the
information they need to make these decisions themselves. Professional traders
also play a key role. As they watch the bond market, they can alert counselors
to values and work to get the best price for each trade.
REINVESTMENT. A mutual fund creates economies of scale not available to
individual bond buyers and holders. Securities' dividends or coupon payments
are pooled to be reinvested in additional bonds. The fund's counselors can use
this income flow to seek the best combination of yield and maturity for current
market conditions.
HIGHER POTENTIAL INCOME. A bond fund buys issues with a number of different
yields. For instance, it can use lower yielding AAA-rated securities as a
foundation and carefully add lower rated, higher yielding bonds to create an
overall higher distribution rate for the fund's shareholders.
WHY LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA?
[Begin Sidebar]
INVESTMENT HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C>
1 Year Lifetime
total return average annual
compound return
(10/6/93-7/31/98)
Fund + 4.9% + 5.6%
Lehman 5.3 5.5
Lipper 4.6 5.0
Lipper Top 27% Top 31%
Rankings* (37 of 141) (23 of 76)
</TABLE>
Fund = Limited Term Tax-Exempt Bond Fund of America without sales charge
Lehman = Lehman 7-Year Municipal Bond Index
Lipper = Lipper Intermediate Municipal Fund Average
(*)Lipper rankings do not reflect the effect of sales charges.
[End Sidebar]
Now that we have covered some key reasons to hold bonds and bond mutual funds,
let's look at why your fund has been a good choice.
VALUE IN THE MIDDLE. Limited Term Tax-Exempt Bond Fund seeks outstanding values
among bonds with effective maturities of three to 10 years. The fund was
created to take advantage of the fact that limited-term bonds have tended to
produce much of the income of longer term bonds with considerably less
volatility.
TAX-EXEMPT INCOME. Investors do not need to be wealthy to benefit from
tax-exempt income. For instance, to earn the equivalent of the fund's 4.5%
income return for fiscal 1998, a taxable investment would have to have produced
7.0% for a shareholder in the 36% tax bracket and 6.3% for one paying 28%.
HISTORICALLY ABOVE-AVERAGE DISTRIBUTION RATE. Income is the primary objective
of most bond fund investors. Your fund has consistently produced
higher-than-average income relative to other funds in its category, despite the
counselors' effort to balance a search for income with an effort to conserve
capital.
WORLD-CLASS FIXED-INCOME RESEARCH. The portfolio counselors who guide Limited
Term Tax-Exempt Bond Fund have an average of 14 years of experience. Making
recommendations to them are our research analysts, some of whom study economic
and political issues, while others investigate states, municipalities and
companies that issue bonds. All benefit from conversations with our taxable
fixed-income and equity analysts who talk with thousands of companies and
government officials each year.
UNIQUE METHOD OF PORTFOLIO MANAGEMENT. The portfolio counselors in the fund
each manage a portion individually, within established guidelines. We call this
approach the multiple portfolio counselor system. Developed over 40 years ago,
the system has a number of advantages: Rather than depending on the ideas of
one "star" manager, the system allows each counselor to invest in his or her
best ideas, without requiring consensus decision-making. It also has tended to
create consistency in a fund's results. If one counselor is having an off year,
it may be balanced by the better results of another. Continuity is another
feature of the system. If one counselor leaves a fund, only a portion of the
responsibility changes hands at one time.
LOW ONGOING EXPENSES. American Funds' expenses are among the lowest in the
mutual fund industry. Your fund closed the fiscal year with an expense ratio of
0.83%. The industry average for tax-exempt bond funds was 1.13% as of December
31, 1997, as measured by CDA/Wiesenberger. Neither figure reflects the effects
of sales charges. Industry averages also include some funds that have higher
distribution fees in lieu of sales charges. Keeping costs down has helped
increase returns to investors over the long term.
We hope you found this review of the potential benefits of bonds and bond funds
useful, and that Limited Term Tax-Exempt Bond Fund of America plays an
important role in your well-diversified portfolio for years to come.
*Sources - U.S. stocks: Standard & Poor's 500 Composite Index, a widely used
measure of common stocks of relatively large companies; U.S. bonds, 1976-1997:
Lehman Brothers Aggregate Bond Index; 1973-1975: Lehman Brothers
Government/Corporate Bond Index. The indexes are unmanaged.
<TABLE>
<S> <C> <C>
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
INVESTMENT PORTFOLIO
July 31, 1998
Portfolio Composition
[pie chart]
California (CA) 10.76%
New York (NY) 10.46%
Michigan (MI) 8.13%
Illinois (IL) 7.21%
Maine (ME) 6.52%
Texas (TX) 5.36%
Washington (WA) 3.98%
North Carolina (NC) 3.70%
Louisiana (LA) 3.54%
Virginia (VA) 2.97%
Other states 34.00%
Cash & Equivalents 3.37%
[end pie chart]
Key To Abbreviations
Agcy. = Agency
Auth. = Authority
Cert. of Part. = Certificates of Participation
Co. = Company
Dept. = Department
Dev. = Development
Econ. = Economic
Fac. = Facilities
Fin. = Financing
G.O. = General Obligation
Ref. = Revenue
Rev. Ref. = Revenue Refunding
Principal Market
Amount Value
(000) (000)
Tax-Exempt Securities Maturing in More than One Year
One Year - 98.00%
Alabama - 1.37%
Industrial Dev. Board of the City of Butler, Pollution Control Ref. Rev. Bonds $3,000 $3,111
(James River Project), Series 1993, 5.50% 2005 $3,000 $3,111
Alaska - 0.46%
Student Loan Corp., Student Loan Rev. Bonds, 1997 Series A, AMBAC Insured AMT, 5. 1,000 1,036
Arizona - 1.84%
Educational Loan Marketing Corp., 1992 Educational Loan Rev. Bonds:
Series A, 6.70% 2000 3,000 3,112
Series B AMT, 6.95% 2001 1,000 1,059
California - 10.76%
Health Fac. Fin. Auth. Hospital Rev. Bonds (Downey Community Hospital):
Series 1993, 5.00% 2001 1,150 1,172
Series 1993, 5.20% 2003 1,000 1,031
Series 1993, 5.30% 2004 1,010 1,047
Pollution Control Fin. Auth., Solid Waste Disposal Ref. Rev. Bonds (USA Waste
Services, Inc. Project), Series 1998A AMT, 5.10% 2018(1) 3,500 3,508
Statewide Communities Dev. Auth., Apartment Dev. Rev. Ref. Bonds
(Irvine Apartment Communities, LP), Series 1998A AMT, 5.05% 2025 (2008)(1) 1,000 1,008
Association for Bay Area Governments Fin. Auth. for Nonprofit Corporations, Ref. Rev.
Certificates of Participation (Episcopal Homes Foundation), Series 1998, 5.00% 20 1,405 1,432
City of Fremont, Multifamily Housing Rev. Ref. Bonds, Issue A of 1995
(Durham Greens Project), 5.40% 2026 (2006)(1) 1,830 1,925
Long Beach Aquarium of the Pacific, Rev. Bonds (Aquarium
of the Pacific Project), 1995 Series A, 5.75% 2005 3,000 3,182
County of Los Angeles, Cert. of Part., Captial Asset
Leasing Corp. (Marina del Rey), Series A, 6.25% 2003 3,100 3,263
Pleasanton Joint Powers Fin. Auth., Reassessment Rev. Bonds, 1993 Series A, 5.70% 920 958
Sacramento Cogeneration Auth., Cogeneration Project Rev. Bonds (Procter & Gamble Project),
1995 Series, 7.00% 2004 2,200 2,480
Sacramento Power Auth., Cogeneration Project Rev. Bonds
(Campbell Soup Project), 1995 Series:
6.50% 2004 2,000 2,211
6.50% 2005 1,100 1,219
Colorado - 2.48%
Housing and Finance Auth., Single Family Program Senior Bonds, 1995 Series
C-2, 5.625% 2009 (2000)(1) 805 839
The Regents of the University of Colorado, Refunding Cert. of Part.
(Telecommunications and Cogeneration Projects), Series 1996, AMBAC Insured, 6.00 2,415 2,637
Eaglebend Affordable Housing Corp., Multifamily Housing
Project Rev. Ref. Bonds, Series 1997A:
5.45% 2002 550 558
5.75% 2007 1,585 1,630
Connecticut - 1.93%
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, 1996 Series A:(2)
6.25% 2002 (Escrowed to Maturity) 500 535
6.25% 2002 500 539
6.375% 2004 (Escrowed to Maturity) 2,010 2,206
6.375% 2004 995 1,104
District of Columbia - 0.46%
G.O. Refunding Bonds, Series 1993D, FGIC Insured:
5.10% 2002 ( Escrowed to Maturity) 42 44
5.10% 2002 958 990
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc. Issue),
Series 1997 A, MBIA Insured, 6.00% 2006 1,000 1,091
Idaho - 0.58%
Housing and Finance Association, Single Family Mortgage Bonds:
1998 Series C, 5.25% 2011 550 554
1998 Series E-3 AMT, 5.125% 2011 750 753
Illinois - 6.72%
Health Fac. Auth Rev. and Ref. Bonds:
Series 1997A, (Advocate Health Care Network):
5.50% 2004 1,250 1,316
5.10% 2005 1,815 1,871
Series 1998 (Centegra Health System), 5.50% 2007 2,480 2,600
Series 1998 (Northwestern Medical Faculty Foundation, Inc.),
MBIA Insured, 5.25% 2006 1,810 1,892
Series 1993, (OSF Healthcare System), 5.25% 2001 2,300 2,379
Series 1997 A (Victory Health Services), 5.25% 2004 1,755 1,816
Housing Dev. Auth., Multi-Family Housing Bonds, 1992 Series A, 6.55% 2003 1,165 1,252
City of Chicago, G.O. Certificates, Series 1997, 5.25% 2006 2,030 2,130
The County of Cook, G.O. Capital Improvement Bonds,
Series 1996, FGIC Insured, 6.00% 2006 1,000 1,105
Indiana - 0.76%
Employment Dev. Commission, Pollution Control Rev. Bonds (Chrysler Corp. Project),
Series 1985, 5.70% 1999 1,700 1,728
Health Fac. Fin. Auth. Hospital Rev. Bonds Charity Obligation Group, Series 1997D,
5.00% 2026 (2007)(1) 2,500 2,541
Iowa - 0.95%
Student Loan Liquidity Corp., Student Loan Rev. Bonds, Series C AMT, 6.80% 2005 2,000 2,155
Kentucky - 0.89%
Econ. Dev. Finance. Auth., Hospital System Refunding and Improvement Rev. Bonds,
Series 1997 (Appalachian Regional Healthcare, Inc. Project):
5.40% 2006 1,500 1,540
5.50% 2007 465 480
Louisiana - 3.54%
Offshore Terminal Auth., Deepwater Port Ref. Rev. Bonds (LOOP INC. Project),
First Stage, Series E, 7.45% 2004 5,000 5,397
Public Fac. Auth., Hospital Rev. Bonds (Franciscan Missionaries of
Our Lady Health System Project), Series 1998C, MBIA Insured:
5.50% 2005 1,500 1,592
5.25% 2006 1,000 1,047
Maine - 6.52%
Educational Loan Marketing Corp., Senior Student Loan Rev. Bonds:
Series 1991 AMT, 6.90% 2003 2,595 2,727
Series 1994A-4 AMT:
5.95% 2003 1,000 1,071
6.05% 2004 1,500 1,603
Housing Auth., Mortgage Purchase Bonds:
1994 Series C-1, 5.90% 2015(1) 5,965 6,193
1994 Series E, 6.30% 2002 1,650 1,717
Student Loan Rev. Ref. Bonds, Series 1992A-1 AMT:
6.20% 2003 515 549
6.30% 2004 880 940
Maryland - 1.61%
Community Dev. Administration, Dept. of Housing and Community Dev.,
Single Family Program Bonds:
1994 First Series, 5.70% 2017 (2004)(1) 2,405 2,483
1994 Fifth Series AMT, 5.875% 2017 (2001)(1) 1,145 1,180
Massachusetts - 1.07%
The New England Education Loan Marketing Corp., Student Loan Rev. Ref. Bonds:
1992 Senior Issue A, 6.50% 2002 1,000 1,080
1992 Issue C AMT, 6.75% 2002 1,250 1,353
Michigan - 8.13%
Hospital Finance Auth., Rev. Ref. Bonds:
Genesys Health System Obligated Group, Series 1995A, 7.20% 2003 2,375 2,706
(Hackley Hospital Obligated Group), Series 1998A, 4.90% 2007 1,140 1,140
Pontiac Osteopathic, Series A, 5.375% 2006 4,000 4,108
Housing Dev. Auth., Rental Housing Rev. Bonds, 1992
Series A, AMBAC Insured, 6.40% 2005 1,200 1,293
State Hospital Finance Auth., Hospital Rev. Ref. Bonds Mercy Health Services,
Series 1997T, 6.25% 2011 1,000 1,110
City of Detroit, G.O. Refunding Bonds (Unlimited Tax):
Series1995-A:
6.10% 2003 1,800 1,923
6.25% 2004 2,165 2,349
Series 1995-B, 6.75% 2003 3,500 3,834
Minnesota - 0.75%
Housing and Finance Auth., Single Family Mortgage Bonds,
Series Q, 6.25% 2014 (1999)(1) 615 641
Maplewood Health Care Facility, Rev. Bonds (HealthEast Project), 5.80% 2003 1,000 1,054
Nebraska - 0.72%
Hospital Auth. No. 1 of Lancaster County, Rev. Bonds, Series 1991A
(Sisters of charity Health Care Systems, Inc.), MBIA Insured,
6.375% 2005 1,530 1,634
Nevada - 0.00%
Housing Division, Single Family Mortgage Bonds,
1998 Series B-1, 5.20% 2011 1,000 1,008
New Jersey - 1.17%
Econ. Dev. Auth., First Mortgage Rev. Ref. Bonds
(Fellowship Village Project), Series 1998A:
5.00% 2006 1,275 1,278
5.05% 2007 1,375 1,379
Housing and Mortgage Finance Agcy., Home Buyer Rev.
Bonds, 1994 Series I, MBIA Insured, 5.60% 2016(1) 2,900 2,986
New Mexico - 0.00%
Educational Assistance Foundation, Student Loan Rev. Bonds, Subordinate 1
1992 Series One-B AMT, 6.85% 2005 1,110 1,183
New York - 10.46%
Dormitory Auth:
Center for Nursing & Rehabilitation, Inc., FHA Insured Mortgage
Nursing Home Rev. Bonds,Series 1997, 4.75% 2007 1,000 1,007
City University of New York, as Lessee (John Jay College of Criminal
Justice Project Refunding), 5.75% 2005 2,000 2,139
Secured Hospital Rev. Bonds (Saint Agnes Hospital), Series 1998A, 4.80% 2006 1,000 1,007
Secured Hospital Rev. Ref. Bonds, (Wyckoff Heights
Medical Center), Series H, 5.125% 2008 2,000 2,049
State Medical Care Fac. Finance Agcy., Mental Health Services Fac.
Improvement Rev. Bonds, Series B:
5.30% 2004 1,620 1,686
5.30% 2004 2,000 2,089
6.00% 2007 3,000 3,275
State Thruway Auth., Local Highway and Bridge Service Contract Bonds,
Series 1994, MBIA Insured, 5.75% 2008 1,295 1,376
State University Educational Fac., Series 1994B, 5.70% 2004 1,000 1,067
Urban Dev. Corp., Correctional Capital Fac. Rev. Bonds, Series 6, 6.00% 2006 1,500 1,622
Castle Rest Residential Health Care Facility, Mortgage Rev. Bonds,
Series 1997A, FHA Insured, 4.875% 2007 1,400 1,428
City of New York, G.O. Bonds:
Series E, 6.50% 2004 1,000 1,098
Series A-1, AMBAC Insured, 6.25% 2005 1,000 1,110
Series I, 6.25% 2006 1,000 1,104
Fiscal 1996 Series I, 6.50% 2006 1,500 1,678
North Carolina - 3.70%
Municipal Power Agcy. Number 1, Catawba Electric Rev.
Bonds, Series 1992, 6.00% 2004 5,000 5,357
Eastern Municipal Power Agcy., Power System Rev. Bonds:
Refunding Series 1993B, 6.00% 2005 (2003)(1) 1,330 1,417
Refunding Series 1993C, 5.50% 2007 1,550 1,613
Ohio - 0.88%
Housing Finance Agcy., Single Family Mortgage Rev. Bonds, 1992
Series A-2 AMT, 5.70% 2013 (1) 960 994
The Student Loan Funding Corp., Cincinnati, Senior Subordinated Rev. Bonds,
Series 1993A AMT, 5.75% 2003 1,000 1,000
County of Franklin, Hospital Fac. Rev. Ref. and Improvement Bonds
(Doctors Hospital Project), Series 1993, 5.70% 2004 1,120 1,193
Oklahoma - 1.44%
Housing Finance Agcy., Single Family Mortgage Rev. Bonds, (Homeownership
Loan Program), 1994 Series A-1 AMT, 6.25% 2016 (1) 820 852
Industries Auth., Health System Rev. Ref. Bonds (INTEGRIS Health),
Series 1995D, AMBAC Insured:
5.25% 2005 1,000 1,045
5.25% 2006 1,300 1,362
Pennsylvania - 1.00%
Blair County Hospital Auth., Hospital Rev. Bonds (Altoona Hospital Project),
1998 Series A, AMBAC Insured, 5.00% 2005(3) 2,180 2,262
Hospital and Higher Education Fac. Auth. of Philadelphia, Hospital Rev. Bonds
(Jefferson Health System), Series 1997A, 5.50% 2006 1,265 1,342
Rhode Island - 0.00%
Student Loan Auth., Student Loan Rev. Ref. Bonds,
Series 1992B AMT, 6.90% 2003 (2001)(1) 1,300 1,408
South Carolina - 0.00%
Florence County Hospital Rev. Bonds (McLeod Regional Medical Center Project),
MBIA Insured, Series A, 5.50% 2007 2,330 2,496
South Dakota - 1.36%
Housing Dev. Auth., Homeownership Mortgage Bonds, 1996 Series A, 5.50% 2010 915 952
Student Loan Finance Corp., Student Loan Rev. Bonds, Series 1994-A AMT:
5.95% 2001 1,000 1,050
6.35% 2005 1,000 1,079
Tennessee - 0.00%
The Tennessee Energy Acquisition Corp., Gas Rev. Bonds, Series 1998A,
AMBAC Insured, 4.35% 2004 1,500 1,504
Texas - 4.89%
G.O. Bonds, Veterans' Housing Assistance Program, Fund I Series 1994C
Refunding Bonds, 6.25% 2015 (2000)(1) 1,395 1,449
Department of Housing and community Affairs, Single Family Mortgage Rev.
Bonds, Series B, MBIA Insured, 5.55% 2011 (1) 2,615 2,678
Bell County Health Fac. Dev. Corp., Retirement Facility Rev. Bonds
(Buckner Retirement Services, Inc. Obligated Project), Series 1998:
5.00% 2005 1,330 1,347
5.00% 2007 1,470 1,478
Brazos Higher Education Auth. Inc., Student Loan Rev. Ref. Bonds:
Series 1992C-1 AMT, 6.20% 2000 1,000 1,042
Subordinate Series, 1993C-2 AMT, 5.875% 2004 1,955 2,004
Harris County Health Fac. Dev. Corp., Hospital Rev. Ref. Bonds, Children's
Hospital Project, Series 1995, MBIA Insured, 6.00% 2004 1,000 1,086
Tarrant County Health Fac. Dev. Corp., Health Resources Systems Rev.
Bonds, Series 1997A, 5.50% 2007 1,000 1,066
Utah - 1.38%
Housing Finance Agcy.:
Single Family Mortgage Purchase Refunding Bonds, Series 1996
(Federally Insured or Guaranteed Mortgage Loans),
5.45% 2004 1,185 1,242
Series 1997F AMT, 5.50% 2010 1,100 1,120
Single Family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans):
1998 Issue D-2 AMT, 5.25% 2012(1) 400 401
1998 Issue E-1 AMT, 5.25% 2012(1),(3) 375 376
Vermont - 0.12%
Housing Finance Agcy., Single Family Housing Bonds, Series 4, 5.75% 2012 (1) 280 287
Virginia - 2.52%
Housing Dev. Auth., Commonwealth Mortgage Bonds, 1995 Series A AMT, Subseries A-1:
6.50% 2003 1,000 1,046
6.60% 2004 1,200 1,255
Blue Ridge Regional Jail Auth., Series 1997, 5.25% 2006 1,150 1,215
Norfolk Industrial Dev. Auth., Rev. Bonds, 6.50% 2007 (2002)(1) 2,000 2,197
Pocahontas Parkway Association, Route 895 Connector Toll Road Rev. Bonds, Senior
Current Interest Bonds, Series 1998A, 5.25% 2007 1,000 1,021
Washington - 3.98%
Health Care Fac. Auth.:
Weekly Rate Demand Rev. Bonds (Virginia Mason Medical Center),
MBIA Insured, 6.00% 2006 1,000 1,098
Rev. Bonds, Series 1997A (Catholic Health Initiatives),
MBIA Insured, 5.50% 2005 1,000 1,065
Public Power Supply System:
Nuclear Project No. 1 Ref. Rev. Bonds, Series 1993A, 6.30% 2001 1,000 1,058
Nuclear Project No. 2 Ref. Rev. Bonds:
Series 1993A, AMBAC Insured, 5.50% 2004 1,000 1,058
Series 1992A, 5.90% 2004 1,500 1,612
Series A, 5.00% 2005 1,000 1,027
Series B, 5.50% 2006 2,000 2,113
West Virginia - 0.00%
The State Building Commission, Lottery Rev. Bonds, 1997
Series A, MBIA Insured, 5.00% 2003 1,000 1,035
Wisconsin - 2.95%
Health and Educational Fac. Auth. Variable Rate Hospital Rev. Bonds
(Charity Obligated Group,Daughters of Charity National Health System),
Series 1997D, 4.90% 2015 (2005)(1) 2,000 2,040
Housing and Econ. Dev. Auth., Housing Rev. Bonds:
Series A, 6.20% 2001 1,500 1,568
Series B AMT, 5.30% 2006 3,000 3,079
----------
219,321
----------
Tax-Exempt Securities Maturing in
One Year or Less - 3.30%
State of Colorado, General Fund Tax and Rev. Anticipation Notes,
Series 1998A, 4.00% 6/25/99 1,000 1,004
State of Kentucky, Asset/Liability Commission, General Fund Tax and Rev.
Anticipation Notes, 1998 Series A, 4.50% 6/25/99 3,100 3,125
State of Mississippi, Claiborne County Adjustable/Fixed-Rate Pollution Control Rev.
Bonds (Middle South Energy, Inc. Project), Series C, 9.875% 2014 (1998)(1) 1,000 1,046
State of New York, Energy Research and Dev. Auth., Pollution Control Ref. Rev.
Bonds (New York State Electric & Gas Corp. Project),
2.90% 2029(4) 1,300 1,300
State of Wisconsin, Operating Notes, 4.50% 6/15/99 1,000 1,007
----------
7,482
----------
TOTAL TAX-EXEMPT SECURITIES (cost: $220,670,000) 226,803
Excess of cash, prepaids and receivables over payables 171
----------
NET ASSETS $226,974
========
(1) Valued on the basis of the effective maturity -- that is, the
date at which the security is
expected to be called or refunded by the issuer.
(2) Purchased in private placement transaction; resale may be limited to
qualified institutional buyers;resale to the public may require registration.
(3) Represents a when-issued security.
(4) Coupon rate changes periodically.
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
Limited Term Tax-Exempt Bond Fund of America
Financial Statements
Statement of Assets and Liabilities
at July 31, 1998 (dollars in thousands)
Assets:
Tax-exempt securities
(cost: $220,670) $226,803
Cash 39
Prepaid organization expense 1
Receivables for--
Sales of fund's shares $322
Accrued interest 3,215 3,537
------- -------
230,380
Liabilities:
Payables for--
Purchases of investments 2,618
Repurchases of fund's shares 361
Dividends payable 284
Management services 46
Accrued expenses 97 3,406
------- -------
Net Assets at July 31, 1998 --
Equivalent to $14.85 per share on 15,289,245
shares of beneficial interest issued and
outstanding; unlimited shares authorized $226,974
=======
Statement of Operations
for the year ended July 31, 1998
(dollars in thousands)
Investment Income:
Income:
Interest on tax-exempt securities $10,994
Expenses:
Management services fee $830
Distribution expenses 636
Transfer agent fee 65
Reports to shareholders 51
Registration statement and prospectus 95
Postage, stationery and supplies 18
Trustees' fees 17
Auditing and legal fees 33
Custodian fee 1
Taxes other than federal income tax 4
Organization expense 3
Other expenses 11
-------
Total expenses before reimbursement 1,764
Reimbursement of expenses 169 1,595
------- -------
Net investment income 9,399
-------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 1,474
Net unrealized appreciation
on investments:
Beginning of year 6,807
End of year 6,133
-------
Change in unrealized
appreciation on investments (674)
-------
Net realized gain and change in unrealized
appreciation on investments 800
-------
Net Increase in Net Assets
Resulting from Operations $10,199
======
Statement of Changes in Net Assets
(dollars in thousands)
Year ended
July 31,
1998 1997
------- -------
Operations:
Net investment income $9,399 $9,574
Net realized gain (loss) on investments 1,474 (761)
Net change in unrealized appreciation
on investments (674) 6,412
------- -------
Net increase in net assets
resulting from operations 10,199 15,225
------- -------
Dividends Paid from Net
Investment Income (9,406) (9,603)
------- -------
Capital Share Transactions:
Proceeds from shares sold:
6,125,626 and 6,106,012 shares, respectively 90,775 88,463
Proceeds from shares issued in
reinvestment of net investment
income dividends:
436,639 and 465,326 shares, respectively 6,463 6,740
Cost of shares repurchased:
5,009,998 and 6,523,758 shares, respectively (74,180) (94,336)
------- -------
Net increase in net assets
resulting from capital share
transactions 23,058 867
------- -------
Total Increase in Net Assets 23,851 6,489
Net Assets:
Beginning of year 203,123 196,634
------- -------
End of year $226,974 $203,123
====== ======
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. Limited Term Tax-Exempt Bond 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 current income exempt from federal income
taxes, consistent with preservation of capital, through investments in
tax-exempt securities with effective maturities between three and ten years.
The following paragraphs summarize the significant accounting policies
consistently followed by the fund in the preparation of its financial
statements:
Tax-exempt securities are valued at prices obtained from a pricing service,
when such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean quoted bid and asked prices or at prices for securities of comparable
maturity, quality and type. Securities with original maturities of one year or
less having 60 days or less to maturity are amortized to maturity based on
their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. Securities and assets
for which representative market quotations are not readily available are valued
at fair value as determined in good faith by a committee appointed by the Board
of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. Realized gains and losses from
securities transactions are reported on an identified cost basis. Interest
income is reported on the accrual basis. Premiums and original issue discounts
on securities purchased are amortized. Amortization of market discounts on
securities is recognized upon disposition, subject to applicable tax
requirements. Dividends to shareholders are declared daily after the
determination of the fund's net investment income and are paid to shareholders
monthly.
Prepaid organization expenses are amortized over the estimated period of
benefit, not to exceed five years from commencement of operations. In the event
Capital Research and Management Company (CRMC), the fund's investment advisor,
redeems any of its original shares prior to the end of the five-year period,
the proceeds of the redemption payable with respect to such shares shall be
reduced by the pro rata share (based on the proportionate share of the original
shares redeemed to the total number of original shares outstanding at the time
of such redemption) of the unamortized prepaid organization expenses as of the
date of such redemption. In the event that the fund liquidates prior to the end
of the five-year period, CRMC shall bear any unamortized prepaid organization
expenses.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net investment income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of July 31, 1998, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $6,133,000, of which $6,277,000 related
to appreciated securities and $144,000 related to depreciated securities. There
was no difference between book and tax realized gains on securities
transactions for the year ended July 31, 1998. The fund had available at July
31, 1998 a net capital loss carryforward totaling $2,983,000 which may be used
to offset capital gains realized during subsequent years through 2003 and
thereby relieve the fund and its shareholders of any federal income tax
liability with respect to the capital gains that are so offset. It is the
intention of the fund not to make distributions from capital gains while there
is a capital loss carryforward. The cost of portfolio securities for book and
federal income tax purposes was $220,670,000 at July 31, 1998.
3. The fee of $830,000 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 $60 million of average net assets;
0.21% of such assets in excess of $60 million; plus 3.00% of the fund's monthly
gross investment income. The Investment Advisory and Service Agreement provides
for a fee reduction to the extent that annual operating expenses exceed 0.75%
of the average daily net assets of the fund, during a period which will
terminate at the earlier of such time as no reimbursement has been required for
a period of twelve consecutive months, provided no advances are outstanding, or
October 1, 2003. Expenses that are not subject to these limitations are
interest, taxes, brokerage commissions, transaction costs, and extraordinary
expenses. Fee reductions were $169,000 for the year ended July 31, 1998.
Pursuant to a Plan of Distribution, the fund may expend up to 0.30% 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 July 31, 1998,
distribution expenses under the Plan were limited to $636,000. Had no
limitation been in effect, the fund would have paid $810,500 in distribution
expense under the Plan. As of July 31, 1998, accrued and unpaid distribution
expenses were $59,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $65,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares received $105,000 (after allowances to
dealers) as its portion of the sales charges paid by purchasers of the fund's
shares. Such sales charges are not an expense of the fund and, hence, are not
reflected in the accompanying statement of operations.
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 July 31, 1998,
aggregate amounts deferred and earnings thereon were $37,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Trustees and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. As of July 31, 1998, accumulated net realized loss on investments was
$2,964,000 paid-in capital was $223,806,000.
The fund made purchases and sales of investment securities excluding
short-term securities, of $96,164,000 and $70,109,000, respectively, during the
year ended July 31, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $1,000 was paid by these credits rather than in cash.
<TABLE>
<S> <C> <C> <C> <C> <C>
Per-Share Data and Ratios
Period
October 6
Year ended July 31 1993(1)
to July
1998 1997 1996 1995 31, 1994
----- ----- ----- ----- -----
Net Asset Value, Beginning of Period $14.79 $14.36 $14.29 $14.10 $14.29
----- ----- ----- ----- -----
Income From Investment Operations:
Net investment income .66 .68 .69 .69 .49
Net realized and unrealized
gain (loss) on investments .06 .43 .07 .19 (.19)
----- ----- ----- ----- -----
Total income from investment operations .72 1.11 .76 .88 .30
----- ----- ----- ----- -----
Less Distributions:
Dividends from net investment income (.66) (.68) (.69) (.69) (.49)
----- ----- ----- ----- -----
Net Asset Value, End of Period $14.85 $14.79 $14.36 $14.29 $14.10
===== ===== ===== ===== =====
Total Return/2/ 4.95% 7.96% 5.39% 6.45% 2.11%(3)
Ratios/Supplemental Data:
Net assets, end of period(in millions) $227 $203 $197 $191 $189
Ratio of expenses to average net assets before fee waive .83% .83% .85% .90% .73%(3)
Ratio of expenses to average net assets after fee waiver .75% .75% .74% .64% .51%(3)
Ratio of net income to average net assets 4.40% 4.70% 4.77% 4.88% 3.67%(3)
Portfolio turnover rate 34.07% 31.89% 34.95% 45.82% 42.21%(3)
/1/Commencement of operations.
/2/Excludes maximum sales charge of 4.75%.
/3/Based on operations for the period shown and, accordingly,
not representative of a full year's operations.
</TABLE>
To the Board of Trustees and Shareholders of Limited Term Tax-Exempt Bond 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 Limited Term Tax-Exempt Bond Fund
of America(the "Fund") at July 31, 1998, 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 July 31, 1998 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE COOPERS LLP
Los Angeles, California
August 28, 1998
Tax Information (unaudited)
During the fiscal year ended July 31, 1998, the fund paid 65.6 cents per share
of exempt-interest distributions within the meaning of Section 852(b)(5)(A) of
the Internal Revenue Code.
This information is given to meet certain requirements of the Internal Revenue
Code and should not be used by shareholders for preparing their income tax
returns. For tax return preparation purposes, please refer to the calendar
year-end information you receive from the fund's transfer agent.
This report is for the information of shareholders of Limited Term Tax-Exempt
Bond 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 fund. If used as
sales material after September 30, 1998, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
For information about your account or any of the fund's 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.
Printed on recycled paper
Litho in USA CMG/FS/3850
Lit. No. LTEX-011-0998
45004/15004
[THE AMERICAN FUNDS GROUP(R)]
BOARD OF TRUSTEES
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, JR.
San Diego, California
Chairman of the Board,
Senior Resource Group, Inc.
(senior living centers management)
LEONARD R. FULLER
Marina del Rey, California
President, Fuller Consulting
(management consultants)
ABNER D. GOLDSTINE
Los Angeles, California
President of the fund
Senior Vice President and Director,
Capital Research and Management
Company
PAUL G. HAAGA, JR.
Los Angeles, California
Chairman of the Board of the fund
Executive Vice President and Director,
Capital Research and Management
Company
HERBERT HOOVER III
San Marino, California
Private investor
RICHARD G. NEWMAN
Los Angeles, California
Chairman of the Board, President
and Chief Executive Officer,
AECOM Technology Corporation
(architectural engineering)
PETER C. VALLI retired from the Board
of Trustees effective March 17, 1998.
He had been a Trustee of the fund
since 1993. The Trustees thank him for
his many contributions to the fund.
OTHER OFFICERS
NEIL L. LANGBERG
Los Angeles, California
Senior Vice President of the fund
Vice President -
Investment Management Group,
Capital Research and Management
Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the fund
Senior Vice President -
Fund Business Management Group,
Capital Research and Management
Company
BRENDA S. ELLERIN
Los Angeles, California
Vice President of the fund
Vice President, Capital Research Company
MARY C. HALL
Brea, California
Vice President of the fund
Senior Vice President -
Fund Business Management Group,
Capital Research and Management
Company
MARK R. MACDONALD
Los Angeles, California
Vice President of the fund
Vice President -
Investment Management Group,
Capital Research and Management
Company
JULIE F. WILLIAMS
Los Angeles, California
Secretary of the fund
Vice President -
Fund Business Management Group,
Capital Research and Management
Company
ANTHONY W. HYNES, JR.
Brea, California
Treasurer of the fund
Vice President -
Fund Business Management Group,
Capital Research and Management
Company
KIMBERLY S. VERDICK
Los Angeles, California
Assistant Secretary of the fund
Assistant Vice President -
Fund Business Management Group,
Capital Research and Management
Company
TODD L. MILLER
Brea, California
Assistant Treasurer of the fund
Assistant Vice President -
Fund Business Management Group,
Capital Research and Management
Company
OFFICES OF THE FUND
OFFICES OF THE FUND
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
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
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
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
