AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
SEMI-ANNUAL REPORT
for the period ended January 31, 1995
[The American Funds Group(R) LOGO]
American High-Income Municipal Bond Fund(SM) seeks a high level of current
income exempt from regular federal income taxes. In pursuit of this objective,
it has the flexibility to invest in municipal bonds with a broad range of
credit ratings, with particular emphasis on lower rated and unrated bonds.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Between September 26, 1994 and December 31, 1994 (the end
of the most recent calendar quarter), the total return on an investment at the
4.75% maximum sales charge with all distributions reinvested was -4.82%. Sales
charges are lower for accounts of $25,000 or more. The fund's 30-day yield as
of February 28, 1995, calculated in accordance with the Securities and Exchange
Commission formula, was 6.30%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
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. All investments are subject
to certain risks. Those which include high-yield bonds tend to be subject to
greater price swings and default risks than higher rated bonds. Accordingly,
investors should maintain a long-term perspective. While the fund invests for
income that is exempt from regular federal income taxes, that income may be
subject to state or local income taxes and/or federal alternative minimum
taxes. Capital gain distributions, if any, are taxable.
FELLOW SHAREHOLDERS:
This report, American High-Income Municipal Bond Fund's first, gives us an
opportunity to welcome you and bring you up to date on the fund's first months
of operations. The report covers a period of slightly more than four months,
from the fund's introduction on September 26, 1994, through January 31, 1995,
the midpoint of our fiscal year.
During this brief period, the fund paid dividends totaling 30 cents a share,
all of which are exempt from regular federal income taxes. If you took those
dividends in cash, you received an income return of 2.11% (6.06% on an
annualized basis). If you reinvested those dividends, your income return was
slightly higher - 2.12% (6.09% on an annualized basis) - because of the benefit
of compounding. For a shareholder in the 39.6% federal tax bracket, the 2.12%
four-month income return is equivalent to a taxable return of 3.51% (10.09% on
an annualized basis).
In addition to paying generous income, many of the bonds we acquired over the
past four months have risen in price. That price appreciation is reflected in
the fund's net asset value per share, which rose from $14.29 last September 26
to $14.39 on January 31, after hitting a low of $13.64 on November 21 and 22.
The fund's total return - taking into account income from dividends and the
increase in net asset value - was +2.9%, outpacing both the high-grade and
high-yield municipal bond markets as a whole. The unmanaged Lehman Brothers
Municipal Bond Index, a measure of higher rated municipal bonds, gained 1.4%
with dividends reinvested over this brief period. Measured the same way, the
Lipper High-Yield Municipal Debt Fund Average gained 1.2%.
We are pleased to report that the fund was able to make many of its initial
investments at an opportune time. One of the worst bond markets in history
created a wide selection of interesting investment opportunities in higher
yielding municipal obligations. At a different time and in a different market,
many of these securities probably would not have been available for purchase
for the simple reason that their holders would not have been willing to part
with them. In 1994's shell-shocked market, with interest rates up sharply and
many income investors scrambling for safety, promising high-yield bonds were
available at extremely reasonable prices. In taking advantage of the most
attractive of these opportunities, the fund was aided by a steady stream of new
investor capital.
In carefully researching a number of these investments, the municipal bond
professionals at Capital Research and Management Company (CRMC), the fund's
adviser, have the advantage of being able to draw on the insights of CRMC's
taxable fixed-income and equity analysts. Their combined perspectives led to
investments in a variety of bonds issued on a tax-exempt basis by major U.S.
companies to finance projects deemed to be in the public interest, such as
pollution control and transportation services. Examples in the portfolio
include bonds issued by Champion International, Delta Airlines, Federal Express
and Inland Steel. All, incidentally, are companies that analysts and portfolio
counselors at CRMC have followed actively for years.
The fund's portfolio is broadly diversified by market sector and geographic
region. As of January 31, American High-Income Municipal Bond Fund owned 50
bonds issued by entities in 21 states for such projects as airports, housing,
hospitals and waste disposal. A breakdown of the fund's holdings by quality is
shown at right.
Over the past four months, fund assets have grown to more than $106 million as
the fund attracted investments from individuals seeking high tax-advantaged
income. Such investments, of course, are not for everyone. Higher yielding
bonds entail a higher level of investment risk, including greater price
fluctuations and default risks than higher quality bonds. The fund seeks to
reduce these risks through thorough research into each situation and by broadly
diversifying and actively managing the portfolio. Nonetheless, there no doubt
will be times in the months and years ahead when the value of an investment in
the fund fluctuates sharply. For individuals willing to accept those
fluctuations, we believe the fund can provide an attractive long-term
investment.
Cordially,
Paul G. Haaga, Jr.
Chairman
Abner D. Goldstine
President
March 10, 1995
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
Investment Portfolio, January 31, 1995
<TABLE>
<CAPTION>
Principal Market
Amount Value
(000) (000)
<S> <C> <C>
Tax-Exempt Securities Maturing in More than
One Year - 95.36%
California - 4.10%
Pleasanton Joint Powers Financing Authority,
Subordinate Reassessment Revenue Bonds,
1993 Series B, 6.125% 2002 4,535 4,356
Colorado - 4.64%
City and County of Denver, Airport System
Revenue Bonds:
Series 1994A:
6.90% 1998 2,000 1,990
7.00% 1999 1,000 997
7.50% 2023 1,000 994
Series 1992C, 6.35% 2001 1,000 955
District of Columbia - 3.10%
Hospital Revenue Refunding Bonds (Washington
Hospital Center Issue), Series 1992A:
7.00%, 2005 1,500 1,510
7.125% 2019 1,890 1,791
Florida - 0.89%
Broward County, Resource Recovery Revenue Bonds,
Series 1984 North Project, 7.95% 2008 865 949
Georgia - 1.79%
Fulco Hospital Authority, Revenue Anticipation
Certificates (Georgia Baptist Health Care
System Project), Series 1992A, 6.375% 2022 2,250 1,902
Illinois - 11.63%
City of Chicago, Chicago-O'Hare International
Airport, Special Facility Revenue Bonds
(United Air Lines, Inc. Project):
Series 1988A, 8.95% 2018 1,950 2,104
Series 1988B, 8.85% 2018 1,185 1,285
City of Chicago, Skyway Toll Bridge Refunding
Revenue Bonds, Series 1994, 6.75% 2017 3,000 2,926
Health Facilities Authority, Revenue Bonds,
(Fairview Obligated Group Project),
Series 1992A, 9.50% 2022 2,750 2,921
Village of Robbins, Cook County, Resource
Recovery Revenue Bonds (Robbins Resource
Recovery Partners, L.P. Project), Series 1994A:
8.75% 2005 1,000 1,036
9.25% 2014 2,000 2,102
Indiana - 3.99%
City of East Chicago, Pollution Control
Refunding Revenue Bonds:
(Inland Steel Company Project No. 10),
Series 1993, 6.80% 2013 2,400 2,256
(Inland Steel Company Project No. 11),
Series 1994, 7.125% 2007 2,000 1,988
Kentucky - 4.32%
Kenton County Airport Board (Commonwealth of
Kentucky), Special Facilities Revenue Bonds
(Delta Air Lines, Inc. Project), 1992 Series A,
7.50% 2012 4,625 4,590
Louisiana - 9.30%
Parish of Beauregard, Solid Waste Disposal
Revenue Bonds (Boise Cascade Corporation
Project), Series 1993, 6.30% 2023 3,500 2,969
Industrial Development Board of the Parish of
Calcasieu, Inc., Pollution Control Revenue
Refunding Bonds (Gulf States Utilities Company
Project), Series 1992, 6.75% 2012 2,000 1,946
Orleans Levee District, Levee Improvement Fixed
Rate Refunding Bonds, Series 1987A, 8.25% 2014 5,000 4,975
Maine - 2.21%
Town of Bucksport, Solid Waste Disposal Revenue
Bonds (Champion International Corporation
Project), Series 1985, 6.25% 2010 2,500 2,350
Maryland - 3.31%
Baltimore County, Pollution Control Revenue
Refunding Bonds (Bethlehem Steel Corporation
Project), Series 1994A, 7.55% 2017 2,000 2,007
Housing Opportunities Commission of Montgomery
County, Multifamily Revenue Bonds (Strathmore
Court at White Flint), 1994 Issue A-2:
7.50 2024 1,000 1,008
7.50 2027 500 503
Michigan - 9.75%
The Economic Development Corporation of
Dickinson County, Solid Waste Disposal
Refunding Revenue Bonds (Champion International
Corporation Project), Series 1989, 6.55% 2007 2,500 2,473
Hospital Finance Authority, Hospital Revenue
Refunding Bonds (Genesys Health System
Obligated Group), Series 1995A:
8.00% 2005 2,000 2,087
7.50% 2027 1,000 939
The Economic Development Corporation of the
County of Midland, Subordinated Pollution
Control Limited Obligation Revenue Refunding
Bonds (Midland Cogeneration Project),
Series 1990B, 9.50% 2009 4,600 4,869
Mississippi - 1.60%
Claiborne County Adjustable/Fixed-Rate Pollution
Control Revenue Bonds (Middle South Energy,
Inc. Project), Series C, 9.875% 2014 1,500 1,698
Montana - 1.74%
Board of Investments, Resource Recovery Revenue
Bonds (Yellowstone Energy Limited Partnership
Project), Series 1993, 7.00% 2019 2,000 1,852
New Jersey - 2.85%
Economic Development Authority, First Mortgage
Revenue Fixed Rate Bonds (Fellowship Village
Project), Series 1995A, 9.25% 2025 3,000 3,032
New York - 0.93%
The City of New York, General Obligation Bonds,
Fiscal 1995 Series B, 7.00% 2016 1,000 990
Pennsylvania - 11.62%
Economic Development Financing Authority,
Resource Recovery Revenue Bonds (Colver Project),
Series 1994 D, 7.15% 2018 3,000 2,929
The Hospitals Authority of Philadelphia,
Hospital Revenue Bonds (Temple University
Hospital), Series of 1983, 6.625% 2023 2,250 2,045
Cambria County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds
(Bethlehem Steel Corporation Project),
Series 1994, 7.50% 2015 2,500 2,500
Schuylkill County Industrial Development
Authority, Resource Recovery Revenue Refunding
Bonds (Schuylkill Energy Resources, Inc.
Project), Series 1993, 6.50% 2010 5,375 4,888
South Carolina - 4.01%
York County, Pollution Control Facilities
Revenue Bonds (Bowater Incorporated Project),
Series 1990, 7.625% 2006 4,000 4,270
Tennessee - 1.01%
Memphis-Shelby County Airport Authority, Special
Facilities Revenue Bonds (Federal Express
Corporation), Series 1984, 7.875% 2009 1,000 1,077
Texas - 6.79%
Alliance Airport Authority, Inc., Special
Facilities Revenue Bonds (American Airlines,
Inc. Project), Series 1990, 7.50% 2029 1,800 1,769
Dallas-Fort Worth International Airport
Facility Improvement Corporation, American
Airlines, Inc., Revenue Bonds, Series 1992,
7.25% 2030 1,500 1,425
Tomball Hospital Authority, Hospital Revenue
Refunding Bonds, Series 1993, 6.125% 2023 2,780 2,245
West Side Calhoun County Navigation District,
Solid Waste Disposal Revenue Bonds (Union
Carbide Chemicals and Plastics Company Inc.
Project), Series 1993, 6.40% 2023 1,980 1,783
Washington - 2.20%
The Public Industrial Corporation (Port of
Camas-Washougal), Pollution Control Refunding
Revenue Bonds (James River Project),
Series 1993, 6.70% 2023 2,500 2,336
Wyoming - 3.58%
Sweetwater County, Solid Waste Disposal Revenue
Bonds (FMC Corporation Project):
Series 1994A, 7.00% 2024 2,000 1,916
Series 1994B, 6.90% 2024 2,000 1,892
---------
$101,425
---------
Tax-Exempt Securities Maturing in
One Year or Less - 3.62%
County of Los Angeles, California, 1994-95 Tax
and Revenue Anticipation Notes, Series A,
4.50% 6/30/95 400 400
Commonwealth of Pennsylvania, Tax Anticipation
Notes, First Series of 1994-1995, 4.75% 6/30/95 1,300 1,301
North Central Texas, Health Facilities
Development Corporation, Hospital Revenue Bonds
(Presbyterian Medical Center Project),
Variable Rate Demand Note,
Series 1985C, 3.90% 2015 100 100
State of Texas, Tax and Revenue Anticipation
Notes, Series 1994, 5.00% 8/31/95 2,050 2,054
---------
3,855
---------
TOTAL TAX-EXEMPT SECURITIES (cost: $102,206,000) $105,280
Excess of cash, prepaids and receivables over
payables 1,081
---------
NET ASSETS $106,361
=========
</TABLE>
See Notes to Financial Statements
American High-Income Municipal Bond Fund
Financial Statements
Statement of Assets and Liabilities
at January 31, 1995 (dollars in thousands)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Tax-exempt securities
(cost: $102,206) $105,280
Cash 59
Prepaid organization expense 50
Receivables for-
Sales of investments 2,907
Sales of fund's shares 1,487
Accrued interest 1,924 6,318
--------- ---------
111,707
Liabilities:
Payables for-
Purchases of investments 5,028
Repurchases of fund's shares 125
Dividends payable 187
Accrued Expenses 6 5,346
--------- ---------
Net Assets at January 31, 1995-
Equivalent to $14.39 per share on 7,391,167
shares of beneficial interest issued and
outstanding;
unlimited shares authorized $106,361
=========
Statement of Operations
for the period September 26, 1994*
to January 31, 1995 (dollars in thousands)
Investment Income:
Income:
Interest on tax-exempt securities $1,390
---------
Expenses:
Management services fee $99
Distribution expenses 67
Transfer agent fee 7
Registration statement and prospectus 36
Postage, stationery and supplies 6
Auditing and legal fees 5
Custodian fee 1
Taxes other than federal income tax 1
Organization expense 20
Other expenses 2
---------
Total expenses before reimbursement 244
Reimbursement of expenses 119 125
--------- ---------
Net investment income 1,265
---------
Realized Loss and Unrealized
Appreciation on Investments:
Net realized loss (283)
Net unrealized appreciation
on investments 3,074
---------
Net realized loss and unrealized
appreciation on investments 2,791
---------
Net Increase in Net Assets Resulting
from Operations $4,056
=========
Statement of Changes in Net Assets
for the period September 26, 1994*
to January 31, 1995 (dollars in thousands)
Operations:
Net investment income $1,265
Net realized loss on investments (283)
Net unrealized appreciation
on investments 3,074
---------
Net increase in net assets
resulting from operations 4,056
---------
Dividends Paid from Net
Investment Income (1,261)
---------
Capital Share Transactions:
Proceeds from shares sold:
7,682,651 shares 107,648
Proceeds from shares issued in
reinvestment of net investment
income dividends: 60,196 shares 848
Cost of shares repurchased:
358,680 shares (5,030)
---------
Net increase in net assets
resulting from capital share
transactions 103,466
---------
Total Increase in Net Assets 106,261
Net Assets:
Beginning of period 100
---------
End of period $106,361
=========
</TABLE>
*Commencement of operations
See Notes to Financial Statements
Notes to Financial Statements (Unaudited)
1. American High-Income Municipal Bond Fund, Inc. (the "fund") was organized on
June 14, 1994 as a Maryland Corporation. On August 25, 1994, the fund obtained
its initial capital of $100,000 from the sale of 6,998 shares of its capital
stock at $14.29 per share to Capital Research and Management Company (CRMC),
the investment adviser. Operations commenced on September 26, 1994 upon the
initial purchase of investment securities. The fund's fiscal year ends July
31. The fund is registered under the Investment Company Act of 1940 as an
open-end, diversified management investment company. The following paragraphs
summarize the significant accounting policies consistently followed by the fund
in the preparation of its financial statements:
Tax-exempt securities with original or remaining maturities in excess of 60
days are valued at prices obtained from a national municipal bond pricing
service. The pricing service takes into account various factors such as
quality, yield and maturity of tax-exempt securities comparable to those held
by the fund, as well as actual bid and asked prices on a particular day. Other
securities with original or remaining maturities in excess of 60 days,
including securities for which pricing service values are not available, are
valued at the mean of their quoted bid and asked prices. All securities with
60 days or less to maturity are valued at amortized cost, which approximates
market value. 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 Directors.
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. Premiums and
original issue discounts on securities purchased are amortized over the life of
the respective securities. Dividends are declared on a daily basis after
determination of the fund's net investment income and paid to shareholders on a
monthly basis.
Prepaid organizational expenses include registration fees which are charged to
income over 12 months, the estimated period of benefit. Other organizational
expenses are amortized over a period not exceeding five years from commencement
of operations. In the event that CRMC redeems any of its original shares prior
to the end of the five-year period, the proceeds of the redemption payable in
respect of 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
deferred 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 deferred organization expenses.
Pursuant to the custodian agreement, the fund may receive credit against its
custodian fee for imputed interest on certain balances with the custodian bank.
During the period ended January 31, 1995, no credit was used to offset the
custodian fee.
2. It is the fund's policy 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 January 31, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $3,074,000, of which $3,122,000
related to appreciated securities and $48,000 related to depreciated
securities. There was no difference between book and tax realized gains on
securities transactions for the period ended January 31, 1995. The cost of
portfolio securities for book and federal income tax purposes was $102,206,000
at January 31, 1995.
3. The fee of $99,000 for management services was paid pursuant to an agreement
with CRMC, with which certain officers and Directors 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; and 3.00%
of the fund's monthly gross investment income. The Investment Advisory and
Service Agreement provides for fee reductions to the extent that annual
operating expenses exceed 0.90% of the average 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 October 1, 2004. CRMC has also voluntarily agreed to waive its
fees to the extent necessary to ensure that the fund's expenses do not exceed
0.64% of the average 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. Fee reductions amounted to $119,000 for
the period ended January 31, 1995.
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 Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the period ended January 31, 1995,
distribution expenses under the Plan were $67,000. As of January 31, 1995,
accrued and unpaid distribution expenses were $6,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $7,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $34,000 (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.
Directors 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 January 31, 1995, no amounts were deferred.
CRMC is owned by the Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No
affiliated officers, Directors or employees of CRMC, AFS, and AFD received any
remuneration directly from the fund.
4. As of January 31, 1995, accumulated undistributed net realized loss on
investments was $283,000 and paid-in capital was $103,566,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $108,111,000 and $9,504,000 respectively, during the
period ended January 31, 1995.
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Period September 26, 1994/1/ to January 31, 1995
<S> <C>
Net Asset Value, Beginning
of Period 14.29
-------
Income From Investment
Operations:
Net investment income 0.3
Net realized and
unrealized gain
on investments 0.1
-------
Total income from
investment operations 0.4
-------
Less Distributions:
Dividends from net
investment income -0.3
-------
Net Asset Value, End of Period $14.39
=======
Total Return/2/ 2.87%/3/
Ratios/Supplemental Data:
Net assets, end of period (in millions) $106
Ratio of expenses to average net assets .24%/3/,/4/
Ratio of net income to average net assets 2.46%/3/
Portfolio turnover rate 20.47%/3/
</TABLE>
/1/Commencement of operations.
/2/This was calculated without deducting a sales charge. The
maximum sales charge is 4.75% of the fund's offering price.
/3/Based on operations for the period shown and, accordingly,
not representative of a full year's operations.
/4/Had CRMC not waived fees, the fund's ratio of expenses to
average net assets would have been 0.48% for the period.
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
These handy services can add convenience and flexibility to your American Funds
investments.
ADDING TO YOUR INVESTMENT
There are three ways you can group your American Funds purchases to qualify for
a quantity discount:
RIGHT OF ACCUMULATION: You can combine the value of your existing shares with
those you are purchasing to qualify for a discount.
STATEMENT OF INTENTION: You can, without obligation, use a Statement of
Intention that allows you to combine the value of your existing shares and the
purchases you intend to make over a 13-month period so you can take immediate
advantage of the maximum quantity discount available.
CONCURRENT PURCHASES: By purchasing shares in more than one American Fund
simultaneously, you may qualify for a quantity discount.
(Shares of money market funds purchased directly do not apply to quantity
discounts. Additionally, certain accounts may not be eligible to be grouped.
See the fund's prospectus or your investment professional for more details.)
SUBSEQUENT INVESTMENTS BY MAIL: Once your account has been established and
you've selected a broker/dealer, simply send a check for $50 or more, along
with the bottom portion of your account statement, to American Funds Service
Company.
PUTTING YOUR INVESTMENTS ON AUTOPILOT
AUTOMATIC INVESTMENT PLAN: You can make automatic investments regularly by
authorizing American Funds Service Company to deduct a specified sum from your
bank account.
AUTOMATIC EXCHANGE PLAN: You can automatically exchange $50 or more between
funds on a regular basis.
AUTOMATIC WITHDRAWAL PLAN: You can arrange to have regular checks for specified
amounts sent to you or to anyone you designate in any month(s) you choose.
CHOOSING THE PAYOUT SYSTEM THAT'S RIGHT FOR YOU
AUTOMATIC REINVESTMENT: All dividends and capital gain distributions can be
automatically reinvested in additional fund shares without a sales charge.
CROSS-REINVESTMENT: You can reinvest dividends and/or capital gains from one
fund to another fund at no charge if you have a balance of at least $5,000 in
the originating fund or meet the minimum initial investment for the receiving
fund.
DIVIDENDS IN CASH: You can elect to take dividends in cash.
REPORTS YOU'LL RECEIVE FROM US
CONFIRMATIONS OF TRANSACTIONS: You receive account statements reflecting the
transactions in your account.
CONSOLIDATED QUARTERLY STATEMENTS: If you have more than one account with the
American Funds, you can request a quarterly statement combining certain
accounts registered to the same individual.
YEAR-END TAX REPORTS: At the end of each year, you will receive an individual
report which shows the tax status of the distributions paid to you during the
year. In many instances, these reports can help you calculate taxes due on
shares sold by reporting average cost.
SPECIAL SERVICES
EXCHANGE PRIVILEGES: You can transfer some or all of your holdings into other
American Funds by mail or by phone. Certain restrictions apply (a sales charge
may apply if one has not already been paid), and it's important to remember
that an exchange constitutes a sale and purchase for tax purposes.
TELEPHONE INFORMATION SERVICE: American FundsLine(R) is a toll-free service
which gives you account information as well as current prices for all American
Funds. Just call 800/325-3590.
SAFEKEEPING OF CERTIFICATES: Your shares are credited to your account and
certificates are not issued unless specifically requested. (Certificates are
not available for money market funds.)
FREE CHECK-WRITING WITHDRAWAL SERVICE: If you have a money market fund account,
this service enables you to write checks for $250 or more against the account.
The account continues to earn daily interest until checks clear the fund's
bank.
FOR MORE COMPLETE INFORMATION ABOUT THESE SERVICES OR ABOUT ANY OF THE AMERICAN
FUNDS, INCLUDING CHARGES AND EXPENSES, PLEASE OBTAIN A PROSPECTUS FROM YOUR
SECURITIES DEALER OR FINANCIAL PLANNER, OR PHONE THE FUND'S TRANSFER AGENT,
AMERICAN FUNDS SERVICE COMPANY, AT 800/421-0180. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THESE SERVICES ARE SUBJECT TO CHANGE
OR TERMINATION.
AMERICAN HIGH-INCOME MUNICIPAL BOND FUND
BOARD OF DIRECTORS
H. FREDERICK CHRISTIE
Palos Verdes Estates, California
Private investor; former President and
Chief Executive Officer,
The Mission Group; former President,
Southern California Edison Company
DIANE C. CREEL
Long Beach, California
Chairwoman, Chief Executive Officer
and President, The Earth Technology
Corporation
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board,
Senior Resource Group, Inc.
(senior living centers management)
LEONARD R. FULLER
Los Angeles, California
President, Fuller & Company, Inc.
(financial management consulting firm)
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
Senior Vice President and Director,
Capital Research and Management
Company
HERBERT HOOVER III
Pasadena, 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
Long Beach, California
Chairman of the Board and
Chief Executive Officer,
BW/IP International, Inc.
(industrial manufacturing)
OTHER OFFICERS
NEIL L. LANGBERG
Los Angeles, California
Senior Vice President of the fund
Vice President - Investment
Management Group, Capital Research
and Management Company
MARY C. CREMIN
Los Angeles, California
Vice President and Treasurer of the fund
Senior Vice President - Fund Business
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
JULIE F. WILLIAMS
Los Angeles, California
Secretary 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
Compliance Associate - Fund Business
Management Group, Capital Research
and Management Company
ANTHONY W. HYNES, JR.
Los Angeles, California
Assistant Treasurer of the fund
Vice President - Fund Business
Management Group, Capital Research
and Management Company
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 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
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
This report is for the information of shareholders of American High-Income
Municipal Bond Fund, 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 March 31, 1995, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA W/ALI
Lit. No. AHIM-013-0395
Printed on recycled paper
[The American Funds Group(R) LOGO]
