(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
CHECK THE APPROPRIATE BOX:
/X/ Preliminary Proxy Statement
/ / Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
/ / Confidential, for use of the Commission only (Rule 14a-6(e)(2))
Limited Term Tax-Exempt Bond Fund of America
(Name of Registrant as Specified In Its Charter)
Julie F. Williams
(Name of Person(s) Filing Proxy Statement)
PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX):
/X/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
1) Title of each class of securities to which transaction applies:
2) Aggregate number of securities to which transaction applies:
3) Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule 0-11 (Set forth the amount on which the filling fee is
calculated and state how it was determined):
4) Proposed maximum aggregate value of transaction:
5) Total fee paid:
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number of
the Form or Schedule and the date of its filing.
1) Amount Previously paid:
2) Form, Schedule or Registration Statement No.:
3) Filing Party:
4) Date Filed:
<PAGE>
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
333 South Hope Street, Los Angeles, California 90071
Fellow Shareholders:
We are writing to inform you of the upcoming meeting of the shareholders of
Limited Term Tax-Exempt Bond Fund of America (the "Fund") to be held at the
offices of The Capital Group Companies, Inc., 11100 Santa Monica Boulevard,
15th Floor, Los Angeles, California, on Wednesday, December 1, 1999 at 11:00
a.m., local time (the "Meeting"). At this meeting, you are being asked to vote
on important proposals affecting the Fund. THE BOARD OF TRUSTEES OF THE FUND
BELIEVES THAT THESE PROPOSALS ARE IN THE BEST INTERESTS OF THE FUND AND ITS
SHAREHOLDERS, AND UNANIMOUSLY RECOMMENDS THAT YOU APPROVE ALL PROPOSALS
PRESENTED FOR YOUR CONSIDERATION.
At the Meeting, you will be asked to vote on:
1. The election of a Board of 10 Trustees (Proposal 1).
2. A proposal to eliminate or revise certain of the Fund's investment
restrictions (Proposal 2).
3. The ratification of the selection, by the Board of Trustees, of
PricewaterhouseCoopers LLP as independent accountants for the Fund for the
fiscal year 2000 (Proposal 3).
4. Any other business that may come before the Meeting (we are not currently
aware of any other items to be considered).
Some key points about Proposal 2 are described below. The proposal is
described in more detail in the full text of the Proxy statement which you
should read before you vote.
ABOUT PROPOSAL 2:
Because the Fund was formed a number of years ago, it is subject to a number
of investment restrictions that do not reflect current conditions, practices or
legal requirements. In one case a restriction, although described as
"fundamental" because it requires shareholder approval to modify, was
originally adopted in response to state regulation that no longer applies to
the Fund. In other cases, we believe the restrictions should be eliminated to
reflect current standards. You may vote for any or all of the changes that are
the subject of Proposal 2 by so indicating on your Proxy card. THIS PROPOSAL
WILL NOT AFFECT THE FUND'S INVESTMENT OBJECTIVE, WHICH REMAINS UNCHANGED.
MOREOVER, THE BOARD DOES NOT ANTICIPATE THAT THE CHANGES, INDIVIDUALLY OR IN
THE AGGREGATE, WILL INCREASE TO A MATERIAL DEGREE THE LEVEL OF INVESTMENT RISK
ASSOCIATED WITH AN INVESTMENT IN THE FUND.
THE BOARD OF TRUSTEES UNANIMOUSLY RECOMMENDS THAT YOU VOTE TO APPROVE THESE
PROPOSALS.
We are sure that you, like most people, lead a busy life and are tempted to
put this Proxy aside for another day. Please don't delay. When shareholders
do not return their Proxies, additional expenses are incurred to pay for
follow-up mailings and telephone calls.
PLEASE TAKE A FEW MINUTES TO REVIEW THIS PROXY STATEMENT AND SIGN AND RETURN
THE ENCLOSED PROXY CARD TODAY. YOU MAY ALSO VOTE YOUR PROXY BY TELEPHONE OR
THE INTERNET BY FOLLOWING INSTRUCTIONS THAT APPEAR ON THE ENCLOSED PROXY
INSERT. Please be sure to sign and return each Proxy card regardless of how
many you receive.
If you have any questions regarding the issues to be voted on or need
assistance in completing your Proxy card, please contact us at (800) 421-0180.
Thank you for investing with us and for your continuing support.
Sincerely,
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Board President
<PAGE>
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
________
NOTICE OF MEETING OF SHAREHOLDERS
DECEMBER 1, 1999
________
TO THE SHAREHOLDERS OF
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA:
A Meeting of Shareholders of Limited Term Tax-Exempt Bond Fund of America (the
"Fund") will be held at the offices of The Capital Group Companies, Inc., 11100
Santa Monica Boulevard, 15th Floor, Los Angeles, California, on Wednesday,
December 1, 1999 at 11:00 A.M., local time, to consider and vote on the
following matters described under the corresponding numbers in the accompanying
Proxy Statement:
(1) election of a Board of 10 Trustees;
(2) approval of the elimination or revision of certain of the Fund's
fundamental investment policies;
(3) ratification of the selection of PricewaterhouseCoopers LLP as the
independent accountant for the Fund for the fiscal year 2000; and
(4) such other matters as may properly come before the meeting.
You are entitled to vote if you held shares of the Fund at the close of
business on September 3, 1999.
THE PROPOSED BUSINESS CANNOT BE CONDUCTED AT THE MEETING UNLESS THE HOLDERS OF
A MAJORITY OF THE SHARES OF THE FUND OUTSTANDING ON THE RECORD DATE ARE PRESENT
IN PERSON OR BY PROXY. THEREFORE, PLEASE MARK, DATE, SIGN AND RETURN THE
ENCLOSED PROXY, WHICH IS SOLICITED BY THE BOARD OF TRUSTEES. THE PROXY IS
REVOCABLE AND WILL NOT AFFECT YOUR RIGHT TO VOTE IN PERSON IF YOU ATTEND THE
MEETING.
By order of the Board of Trustees,
JULIE F. WILLIAMS
SECRETARY
October 12, 1999
IMPORTANT
YOU CAN HELP THE FUND AVOID THE NECESSITY AND EXPENSE OF SENDING FOLLOW-UP
LETTERS TO ENSURE A QUORUM BY PROMPTLY RETURNING THE ENCLOSED PROXY. PLEASE
MARK, DATE, SIGN AND RETURN THE ENCLOSED PROXY SO WE HAVE A QUORUM AT THE
MEETING. THE ENCLOSED ENVELOPE REQUIRES NO POSTAGE IF MAILED IN THE UNITED
STATES. YOU MAY ALSO VOTE BY TELEPHONE OR THE INTERNET BY FOLLOWING
INSTRUCTIONS THAT APPEAR ON THE ENCLOSED PROXY INSERT.
<PAGE>
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
333 SOUTH HOPE STREET, LOS ANGELES, CALIFORNIA 90071
________
PROXY STATEMENT
MEETING OF SHAREHOLDERS
DECEMBER 1, 1999
________
The enclosed Proxy is solicited by the Board of Trustees of the Fund in
connection with the Meeting of Shareholders to be held on Wednesday, December
1, 1999. Every Proxy returned in time to be voted at the meeting will be voted
and, if you specify how to vote on any proposal, the Proxy will be voted
accordingly. Unless you specify otherwise, the Proxy will be voted in favor of
the proposal. You can revoke a Proxy prior to its exercise, either by filing
with the Fund a written notice of revocation, by delivering a duly executed
Proxy bearing a later date, or by attending the meeting and voting in person.
This Proxy was first mailed to shareholders on or about October 12, 1999.
At the close of business on September 3, 1999, the record date fixed by the
Board of Trustees for the determination of shareholders entitled to notice of
and to vote at the meeting, there were outstanding 19,117,262 shares of
beneficial interest, the only authorized class of voting securities of the Fund
(the "Shares"). Each Share is entitled to one vote. There is no provision for
cumulative voting. No person owned of record or was known by the Fund to own
beneficially 5% or more of the outstanding Shares of the Fund.
With respect to the election of Trustees (Item 1), the 10 nominees receiving
the highest number of votes will be elected. The vote required to approve Item
2 is the affirmative vote of the lesser of (a) 67% or more of all Shares
present and entitled to vote at the meeting, provided the holders of more than
50% of all outstanding Shares are present or represented by proxy, or (b) more
than 50% of all outstanding Shares on the record date. The vote required to
approve Item 3 is the affirmative vote of a majority of the Shares present or
represented by Proxy.
If sufficient votes are not received by the meeting date, a person named as
proxy may propose one or more adjournments of the meeting for a period or
periods of up to 120 days in the aggregate to permit further solicitation of
Proxies. The persons named as proxies may vote all Proxies in favor of such
adjournment. Signed but unmarked Proxies will be voted for the Trustees
nominated below and in favor of all proposals. Shareholders who return Proxies
marked as abstaining from voting on one or more proposals are treated as being
present at the meeting for purposes of obtaining the quorum necessary to hold
the meeting, but are not counted as part of the vote necessary to approve the
proposal(s). If brokers holding Shares for their customers in Street Name have
not received instructions and are not authorized to vote without instruction,
those Shares also will be treated as abstentions.
1. ELECTION OF TRUSTEES
Ten Trustees are to be elected at the meeting, each to hold office until their
resignation or removal and until a successor is elected and qualified. Because
meetings of shareholders will not be held each year, the Trustees' terms will
be indefinite in length. All of the nominees for Trustee except Richard G.
Capen, Jr., Don R. Conlan, Diane C. Creel, Leonard R. Fuller and Frank M.
Sanchez were elected by the sole shareholder, Capital Research and Management
Company, at the Special Meeting of on September 23, 1993. Diane C. Creel and
Leonard R. Fuller was elected by the Trustees on September 22, 1994; Don R.
Conlan was elected by Trustees effective December 16, 1996. Richard G. Capen,
Jr. and Frank M. Sanchez have been nominated by the Trustees. Herbert Hoover
III, a Trustee since 1993, has reached the Fund's retirement age and is not
seeking re-election.
Each of the nominees has agreed to serve as Trustee if elected. If, due to
presently unforeseen circumstances, any nominee is not available for election,
the persons named as proxies will vote the signed but unmarked Proxies and
those marked for the nominated Trustees for such other nominee as the present
Trustees may recommend. The table below sets forth certain information
regarding the nominees.
<TABLE>
<CAPTION>
NAME OF NOMINEE CURRENT YEAR MEMBERSHIPS ON SHARES OF THE FUND
(POSITION WITH FUND) PRINCIPAL FIRST BOARD OF OTHER BENEFICIALLY OWNED,
AND AGE OCCUPATION AND ELECTED REGISTERED DIRECTLY OR
PRINCIPAL A INVESTMENT INDIRECTLY, AT
EMPLOYMENT TRUSTEE COMPANIES AND SEPTEMBER 3, 1999
DURING PAST PUBLICLY HELD
FIVE YEARS # COMPANIES
FUND THE
AMERICAN
FUNDS
GROUP
<S> <C> <C> <C> <C> <C>
Richard G. Capen, Jr. Corporate Nominee The American 69 33,293
(Nominee) Director and Funds Group:
63 author; former (Director/Trustee
United States - 5 other funds)
Ambassador to
Spain; former
Vice Chairman
of the Board,
Knight Ridder,
Inc.; former
Chairman and
Publisher, The
Miami Herald
H. Frederick Christie Private 1993 The American 2,761 382,629
(Trustee) investor. Funds Group:
66 Former (Director/Trustee
President and - 18 other funds)
Chief Executive The American
Officer, the Variable Insurance
Mission Group Series
(non-utility
holding company,
subsidiary of
Southern
California
Edison Company)
Don R. Conlan * President 1996 The American 323,784 1,733,463+
(Trustee) (retired), The Funds Group:
63 Capital Group (Director/Trustee
Companies, Inc. - 11 other funds)
Diane C. Creel CEO and 1994 The American 69 2,774
(Trustee) President, The Funds Group:
50 Earth (Director/Trustee
Technology - 11 other funds)
Corporation Allegheny Teledyne
(international Incorporated
consulting B. F. Goodrich
engineering)
Martin Fenton Chairman, 1993 The American 344 28,754
(Trustee) Senior Resource Funds Group:
64 Group, LLC (Director/Trustee
(development - 13 other funds)
and management of senior The American Variable Insurance
living Series
communities) Raintree Healthcare
Corporation
Leonard R. Fuller President, 1994 The American 69 6,408
(Director) Fuller Funds Group:
52 Consulting (Director/Trustee - 11 other
(financial funds)
management The American
consulting Variable
firm) Insurance Series
Abner D. Goldstine* Senior Vice 1993 The American 2,759 2,805,762+
(President and President and Funds Group:
Trustee) Director, (Director/Trustee
69 Capital - 11 other funds)
Research and
Management
Company
Paul G. Haaga, Jr. * Executive Vice 1993 The American 11,114 463,067+
(Chairman of the President and Funds Group:
Board) 50 Director, Capital (Director/Trustee - 13 other funds)
Research and
Management
Company
Richard G. Newman Chairman, 1993 The American 2,226 43,471
(Trustee) President and Funds Group:
64 CEO, AECOM (Director/Trustee
Technology - 12 other funds)
Corporation
(architectural
engineering)
Frank M. Sanchez Principal, The Nominee The American 138 8,838
(Nominee) Sanchez Family Funds Group:
55 Corporation dba (Director/Trustee
McDonald's - 2 other funds)
Restaurants
(McDonald's
licensee)
</TABLE>
_____________
# Corporate positions, in some instances, may have changed during this
period.
* Is considered an "interested person" of the Fund within the meaning of the
Investment Company Act of 1940 (the "1940 Act"),
on the basis of affiliation with Capital Research and Management Company (the
"Investment Adviser"). The Investment Adviser is a wholly owned subsidiary of
The Capital Group Companies, Inc.
+ Includes Shares beneficially held under a master retirement plan.
Capital Research and Management Company manages The American Funds Group
consisting of 29 funds: AMCAP Fund, American Balanced Fund, Inc., American
High-Income Municipal Bond Fund, Inc., American High-Income Trust, American
Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash Management Trust of
America, Capital Income Builder, Inc., Capital World Growth and Income Fund,
Inc., Capital World Bond Fund, Inc., EuroPacific Growth Fund, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America,
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., New World Fund, Inc., SMALLCAP World Fund, Inc., The
Tax-Exempt Bond Fund of America, Inc., The Tax-Exempt Fund of California, The
Tax-Exempt Fund of Maryland, The Tax-Exempt Fund of Virginia, The Tax-Exempt
Money Fund of America, The U.S. Treasury Money Fund of America, U.S. Government
Securities Fund and Washington Mutual Investors Fund, Inc. Capital Research
and Management Company also manages American Variable Insurance Series and
Anchor Pathway Fund which serve as the underlying investment vehicle for
certain variable insurance contracts; and Endowments, whose shareholders are
limited to (I) any entity exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended ("501(c)(3) organization"); (ii) any
trust, the present or future beneficiary of which is a 501(c)(3) organization;
and (iii) any other entity formed for the primary purpose of benefiting a
501(c)(3) organization. An affiliate of Capital Research and Management
Company, Capital International, Inc., manages Emerging Markets Growth Fund,
Inc.
The Fund has an Audit Committee composed of Diane C. Creel, Martin Fenton and
Richard G. Newman. The Committee's functions includes such specific matters as
recommending the independent accountant to the Board of Trustees, reviewing the
audit plan and results of the audits and considering other matters deemed
appropriate for consideration by the Board of Trustees and/or the Committee.
The Fund has a Nominating Committee composed of all Trustees who are not
considered to be "interested persons" of the Fund within the meaning of the
1940 Act. The Committee's functions include selecting and recommending to the
Board of Trustees nominees for election as Trustees of the Fund. While the
Committee normally is able to identify from its own resources an ample number
of qualified candidates, it will consider shareholder suggestions of persons to
be considered as nominees to fill future vacancies on the Board. Such
suggestions must be sent in writing to the Nominating Committee of the Fund,
c/o the Fund's Secretary, and must be accompanied by complete biographical and
occupational data on the prospective nominee, along with a written consent of
the prospective nominee to consideration of his or her name by the Committee.
The Fund has a Contracts Committee composed of all Trustees who are not
considered to be "interested persons" of the Fund within the meaning of the
1940 Act. The Contracts Committee's function is to request, review and
consider the information deemed necessary to evaluate the terms of the
investment advisory and principal underwriting agreements and the Plan of
Distribution under rule 12b-1 that the Fund proposes to enter into, renew or
continue and to make its recommendations to the full Board of Trustees on these
matters.
Each Trustee is paid a fee of $900 per annum plus $200 for each Board of
Trustees meeting attended and $200 for each meeting attended as a member of a
committee of the Board of Trustees.
There were four Board of Trustees two Audit Committee, one Nominating
Committee and one Contracts Committee meetings during the year ended July 31,
1999. All incumbent Trustees attended at least 75% of all Board meetings and
meetings of the committees of which they were members.
The Fund pays no salaries or other compensation to its Trustees other than
Trustees' fees, which are paid to those Trustees who are unaffiliated with the
Investment Adviser as described below.
TRUSTEE COMPENSATION
<TABLE>
<CAPTION>
TRUSTEE OR NOMINEE AGGREGATE TOTAL COMPENSATION TOTAL NUMBER OF
COMPENSATION (INCLUDING VOLUNTARILY FUND BOARDS ON
(INCLUDING DEFERRED COMPENSATION) WHICH TRUSTEE
VOLUNTARILY FROM ALL FUNDS MANAGED BY SERVES /2/
DEFERRED CAPITAL RESEARCH AND
COMPENSATION MANAGEMENT COMPANY DURING
/1/) FROM THE THE FISCAL YEAR ENDED
FUND DURING 7/31/99
FISCAL YEAR
ENDED 7/31/99
<S> <C> <C> <C>
Richard G. Capen, Jr. none /3/ $42,700 5
H. Frederick Christie $2,500/4/ 203,600 19
Don R. Conlan none/5/ none/5/ 12
Diane C. Creel 2,500/4/ 48,000 12
Martin Fenton 2,900/4/ 130,600 15
Leonard R. Fuller 2,500/4/ 51,600 13
Abner D. Goldstine none/5/ none/5/ 12
Paul G. Haaga, Jr. none/5/ none/5/ 14
Richard G. Newman 4,150/4/ 107,100 13
Frank M. Sanchez none/3/ none/3/ 3
</TABLE>
1 Amounts may be deferred by eligible Trustees under a non-qualified deferred
compensation plan adopted by the Fund in 1994. Deferred amounts accumulate at
an earnings rate determined by the total return of one or more funds in The
American Funds Group as designated by the Trustee.
2 Includes funds managed by Capital Research and Management Company and
affiliates.
3 Richard G. Capen, Jr. and Frank M. Sanchez have been nominated as Trustees of
the Fund and had not received any remuneration from the Fund as of its 7/31/99
fiscal year end.
4 Since the deferred compensation plan's adoption in 1994, the total amount of
deferred compensation accrued by the Fund (plus earnings thereon) for
participating Trustees is as follows: H. Frederick Christie ($6,175), Martin
Fenton ($9,544), Leonard R. Fuller ($3,531) and Richard G. Newman ($24,505).
5 Don R. Conlan, Abner D. Goldstine and Paul G. Haaga, Jr. are affiliated with
the Fund's Investment Adviser and, therefore, receive no remuneration from the
Fund.
OTHER EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Name Officer
(Position with Fund) Continuously
and Age Principal Occupation /1/ Since /2/
<S> <C> <C>
Neil L. Langberg Vice President - Investment Management 1993
(Senior Vice President) Group,
46 Capital Research and Management Company
Mark R. Macdonald Vice President - Investment Management 1996
(Senior Vice President) Group,
40 Capital Research and Management Company
Michael J. Downer Senior Vice President - Fund Business 1994
(Vice President) Management Group,
44 Capital Research and Management Company
Brenda W. Ellerin Vice President, Capital Research Company 1997
(Vice President)
36
Julie F. Williams Vice President - Fund Business Management 1993
(Secretary) Group,
51 Capital Research and Management Company
Anthony W. Hynes, Jr. Vice President - Fund Business Management 1993
(Treasurer) Group,
36 Capital Research and Management Company
</TABLE>
/1/ The occupations shown reflect the principal employment of each individual
during the past five years. Corporate positions, in some instances, may have
changed during this period.
/2/ Officers hold office until their respective successors are elected, or
until they resign or are removed.
No officer, director or employee of the Investment Adviser receives any
remuneration from the Fund. All Trustees and officers as a group owned
beneficially fewer than 1% of the Shares outstanding on September 3, 1999.
2. APPROVAL OF THE ELIMINATION OF CERTAIN OF THE FUND'S FUNDAMENTAL INVESTMENT
POLICIES
INTRODUCTION AND SUMMARY
Some of the Fund's existing fundamental investment restrictions reflect
regulatory, business or industry conditions, practices or requirements that
have changed or no longer exist. With the passage of time, the development of
new practices, and changes in regulatory standards, management believes certain
fundamental restrictions ought to be revised, eliminated or reclassified as
non-fundamental.
The Board of Trustees, together with the Fund's senior officers, have analyzed
the current fundamental investment restrictions, and have concluded that two
should be eliminated.
The proposed investment restrictions have been drafted to maintain important
investor protections while providing flexibility to respond to future legal,
regulatory and market changes. By reducing the number of policies that can be
changed only by shareholder vote, the Board of Trustees and the Fund will have
greater flexibility to modify Fund policies, as appropriate, in response to
changing markets and in light of new investment opportunities and instruments.
The Fund will then be able to avoid the costs and delays associated with a
shareholder meeting when making changes to the non-fundamental investment
policies that the Board may consider desirable.
IMPORTANTLY, THE PROPOSED AMENDMENTS DO NOT AFFECT THE INVESTMENT OBJECTIVE OF
YOUR FUND, WHICH REMAINS UNCHANGED. MOREOVER, THE BOARD DOES NOT ANTICIPATE
THAT THE CHANGES, INDIVIDUALLY OR IN THE AGGREGATE, WILL CHANGE TO A MATERIAL
DEGREE THE LEVEL OF INVESTMENT RISK ASSOCIATED WITH AN INVESTMENT IN THE FUND.
The text of each of the Fund's fundamental restrictions which is proposed to
be eliminated is set forth below. Shareholders may vote for any or all of the
changes that are the subject of Proposal 2. If the proposed changes are
approved by the Fund's shareholders, the Fund's prospectus and statement of
additional information will be revised to reflect those changes.
RESTRICTIONS PROPOSED TO BE ELIMINATED
Neither of the following investment restrictions is required under the 1940
Act. Many were originally adopted in response to state law restrictions or
interpretations that no longer apply to the Fund. Therefore, in order to
increase the ability of Fund management to manage the Fund's assets effectively
and efficiently in response to market and regulatory change, it is proposed
that these investment restrictions, which are currently listed as fundamental,
be eliminated. Further explanations pertaining to specific restrictions are
set forth below.
2A. PLEDGING ASSETS
In certain circumstances this restriction could interfere with the Fund's
ability to borrow temporarily for extraordinary or emergency purposes. The
Fund's current borrowing limits would remain unchanged.
CURRENT TEXT
[The Fund may not...] pledge or hypothecate assets in excess of one-third of
the Fund's total assets.
2B. OIL, GAS OR MINERAL EXPLORATION
At one time, certain state regulators felt it appropriate to limit investments
in oil and gas partnerships as a means to protect investors from speculative
investments and to reduce overall portfolio risk. Industry practice has been
to manage these risks through prudent investment practices and explicit
diversification and concentration policies.
CURRENT TEXT
[The Fund may not...] invest in oil, gas, or other mineral exploration or
development programs or leases.
THE BOARD OF TRUSTEES UNANIMOUSLY RECOMMENDS THAT YOU VOTE IN FAVOR OF THESE
PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT RESTRICTIONS.
3. RATIFICATION OF THE SELECTION BY THE BOARD OF TRUSTEES OF
PRICEWATERHOUSECOOPERS LLP AS INDEPENDENT PUBLIC ACCOUNTANT
Shareholders are requested to ratify the selection by the Board of Trustees
(including a majority of the Trustees who are not "interested persons"of the
Fund as that term is defined in the 1940 Act) of PricewaterhouseCoopers LLP as
independent accountant for the Fund for the fiscal year 2000. In addition to
the normal audit services, PricewaterhouseCoopers LLP provides services in
connection with the preparation and review of federal and state tax returns for
the Fund. PricewaterhouseCoopers LLP has served as the Fund's independent
accountant since the Fund's inception and has advised the Fund that it has no
material direct or indirect financial interest in the Fund or its affiliates.
The Fund's Audit Committee recommended that PricewaterhouseCoopers LLP be
selected as the Fund's independent accountant for the current fiscal year. The
employment of the accountant is conditioned upon the right of the Fund to
terminate such employment at any time without any penalty. No representative
of PricewaterhouseCoopers LLP is expected to attend the Meeting of
Shareholders.
THE BOARD OF TRUSTEES UNANIMOUSLY RECOMMENDS THAT YOU VOTE FOR RATIFICATION OF
ITS SELECTION OF PRICEWATERHOUSECOOPERS LLP
OTHER MATTERS
Neither the persons named in the enclosed Proxy nor the Board of Trustees are
aware of any matters that will be presented for action at the meeting other
than the matters set forth herein. If any other matters requiring a vote of
shareholders arise, the Proxies will confer upon the person or persons entitled
to vote the Shares they represent a discretionary authority to vote the shares
in respect to any such other matters in accordance with their best judgment in
the interest of the Fund and its shareholders.
SHAREHOLDER PROPOSALS
Any shareholder proposals for inclusion in proxy solicitation material for a
shareholders meeting should be submitted to the Secretary of the Fund, at the
Fund's principal executive offices, 333 South Hope Street, Los Angeles, CA
90071. Any such proposals must comply with the requirements of federal and
state laws and regulations, including rule 14a-8 under the Securities Exchange
Act of 1934.
Under the laws of Massachusetts, where the Fund is organized, the Fund is not
required to hold regular meetings of shareholders. Under the 1940 Act, a vote
of shareholders is required from time to time for particular matters but not
necessarily on an annual basis. As a result, the Fund does not expect to hold
shareholders meetings on a regular basis, and any shareholder proposal received
may not be considered until such a meeting is held.
GENERAL INFORMATION
Capital Research and Management Company is the investment adviser to the Fund
and is located at 333 South Hope Street, Los Angeles, CA 90071 and 135 South
State College Boulevard, Brea, CA 92821. American Funds Distributors, Inc. is
the principal underwriter of the Fund's shares and is located at the Los
Angeles and Brea addresses above and also at 3500 Wiseman Boulevard, San
Antonio, TX 78251, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513.
The enclosed Proxy is solicited by and on behalf of the Board of Trustees of
the Fund. The Fund will pay the cost of soliciting proxies, consisting of
printing, handling and mailing of the Proxies and related materials. In
addition to solicitation by mail, certain officers and Trustees of the Fund,
who will receive no extra compensation for their services, may solicit by
telephone, telegram or personally. WE URGE ALL SHAREHOLDERS TO MARK, DATE,
SIGN, AND RETURN THE PROXY CARD IN THE ENCLOSED ENVELOPE, WHICH REQUIRES NO
POSTAGE IF MAILED IN THE UNITED STATES. YOU MAY ALSO VOTE YOUR PROXY BY
TELEPHONE OR THE INTERNET BY FOLLOWING INSTRUCTIONS THAT APPEAR ON THE ENCLOSED
PROXY INSERT.
YOU MAY OBTAIN A COPY OF THE FUND'S MOST RECENT ANNUAL REPORT MAY BE OBTAINED,
WITHOUT CHARGE, BY WRITING TO THE SECRETARY OF THE FUND AT 333 SOUTH HOPE
STREET, LOS ANGELES, LOS ANGELES, CA 90071 OR BY TELEPHONING 800/421-0180.
THESE REQUESTS WILL BE HONORED WITHIN THREE BUSINESS DAYS OF RECEIPT.
By Order of the Board of Trustees
JULIE F. WILLIAMS
Secretary
October 12, 1999
<PAGE>
PROXY CARD LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA PROXY CARD
PROXY SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES OF THE FUND
FOR THE MEETING OF SHAREHOLDERS TO BE HELD DECEMBER 1, 1999
The undersigned hereby appoints Michael J. Downer, Paul G. Haaga, Jr., Anthony
W. Hynes, Jr., and Julie F. Williams, and each of them, his/her true and lawful
agents and proxies with full power of substitution to represent the undersigned
at the Meeting of Shareholders to be held at the Office of The Capital Group
Companies, Inc., 11100 Santa Monica Boulevard, 15th Floor, Los Angeles,
California, on Wednesday, December 1, 1999 at 11:00 a.m., on all matters coming
before the meeting.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER YOU DIRECTED. IF
NO DIRECTION IS GIVEN, WITH RESPECT TO ANY PARTICULAR ITEM, THIS PROXY WILL BE
VOTED FOR THE NOMINEES IN ITEM 1 AND FOR ITEMS 2 AND 3.
CONTROL NUMBER:
NOTE: PLEASE SIGN EXACTLY AS YOUR NAME(S) APPEAR ON THIS CARD. JOINT OWNERS
SHOULD EACH SIGN INDIVIDUALLY. CORPORATE PROXIES SHOULD BE SIGNED IN FULL
CORPORATE NAME BY AN AUTHORIZED OFFICER. FIDUCIARIES SHOULD GIVE FULL TITLES.
Signature
Signature of joint owner, if any
Date
LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: []
<TABLE>
<CAPTION>
1. Election of Trustees: FOR ALL WITHHOLD FOR ALL
ALL EXCEPT
<S> <C> <C> <C> <C>
01 Richard G. Capen, Jr. 06 Leonard R. Fuller
02 H. Frederick Christie 07 Abner D. Goldstine [] [] []
03 Don R. Conlan 08 Paul G. Haaga, Jr.
04 Diane C. Creel 09 Richard G. Newman
05 Martin Fenton 10 Frank M. Sanchez
</TABLE>
To withhold your vote for any individual nominee, mark the "For All Except" box
and write the nominee's number on the line provided below.
_____________________________________________________________________
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C>
2. Approval of the proposed changes to the Fund's
investment restrictions:
2A. Eliminate restriction on pledging assets [] [] []
2B. Eliminate restriction regarding oil, gas or mineral [] [] []
exploration
3. Ratification of selection of PricewaterhouseCoopers LLP [] [] []
as independent accountant:
</TABLE>
In their discretion, upon other matters as may properly come before the
meeting.
IMPORTANT
SHAREHOLDERS CAN HELP THE FUND AVOID THE NECESSITY AND EXPENSE OF SENDING
FOLLOW-UP LETTERS BY PROMPTLY RETURNING THIS PROXY.
