American Funds Money Market Fund®
[photo of the training wheel attached to a bicycle]
Special feature
A measure of stability
u See page 2
Annual report for the year ended September 30, 2010
American Funds Money Market Fund® seeks to provide you with a way to earn income on your cash reserves while preserving capital and maintaining liquidity. The fund is a money market fund that seeks to preserve the value of your investment at $1.00 per share.
This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Figures shown in this report are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Investment returns will vary. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank. For current information and month-end results, visit americanfunds.com.
| Here are the average annual total returns on a $1,000 investment with all distributions reinvested for the period ended September 30, 2010: |
| | | | |
| | | | Lifetime (since |
| | 1 year | 5 years | 5/1/2009) |
| | | | |
| Class A shares | 0.00% | — | 0.00% |
The total annual fund operating expense ratio was 0.39% for Class A shares as of the most recent fiscal year-end.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Although the fund has 12b-1 plans for some share classes, the fund is currently suspending certain 12b-1 payments in this low interest rate environment. Should payments commence, the fund’s investment results will be negatively affected. The investment adviser has reimbursed certain expenses. These reimbursements may be adjusted or discontinued by the investment adviser at any time. Fund results shown reflect the reimbursements. See the fund’s prospectus or the Financial Highlights table on pages 17 and 18 for details.
The fund’s annualized seven-day yield for Class A shares as of October 31, 2010, calculated in accordance with the Securities and Exchange Commission formula, was 0.00% (–0.20% without the reimbursement). The annualized seven-day SEC yield more accurately reflects the fund’s current earnings than does the fund’s return.
The return of principal for money market funds is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying holdings in the fund. Money market issuer ratings, which typically range from A-1/P-1 (highest) to A-3/P-3 (lowest) are assigned by credit rating agencies such as Moody’s, Standard & Poor’s and/or Fitch as an indication of an issuer’s creditworthiness. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
| In this report |
| | |
| | Special feature |
| | |
| 2 | A measure of stability |
| | |
| | After experiencing the volatility of the equity markets in the last few years, and in the face of continuing economic tumult, many investors now recognize the importance of keeping a portion of their portfolios in cash-equivalent assets. |
| | |
| | Contents |
| | |
| 1 | Letter to shareholders |
| | |
| 4 | Investment portfolio |
| | |
| 8 | Financial statements |
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| 22 | Board of trustees and other officers |
Fellow shareholders:
We are pleased to present you with American Funds Money Market Fund’s annual report for the fiscal year ended September 30, 2010. During the period, the fund’s first full year, the fund maintained a constant net asset value of $1.00 per share. In an environment marked by very mild economic growth and persistently low short-term interest rates, the fund’s annualized seven-day SEC yield as of September 30, 2010, was 0.00%.
The economy and the Federal Reserve
During the first half of the period, which began on October 1, 2009, the stock and bond markets rallied as economic activity expanded and several factors suggested the outlook was improving. By April, however, sovereign debt problems in Europe, along with continuing high unemployment and troubling budget deficits in the U.S., led to concerns about the health and durability of the economy. Growth in the U.S. slowed to a 1.7% annual rate in the second quarter of 2010, following expansion of 3.7% and 5.0% in the first quarter of 2010 and fourth quarter of 2009, respectively. In September 2010, payrolls declined and unemployment remained unchanged at 9.6%.
The overall rate of inflation remained low. The Consumer Price Index, a key measure of inflation, was up just 0.06% in September and 1.14% for the fund’s fiscal year, substantially below the Federal Reserve’s target level. Concerned about the prospect of deflation, Fed officials in September 2010 raised the prospect of taking further action to stimulate the economy. The central bank maintained the federal funds rate at 0.00%–0.25%. This benchmark lending rate has historically had a significant influence on yields for short-term debt instruments. At the start of the fund’s fiscal year, many investors were anticipating a rate increase, but that expectation has diminished in recent months.
The fund’s objective
American Funds Money Market Fund is carefully managed to provide stability and liquidity while also seeking to generate a reasonable yield on your investment.
Looking ahead, mild inflation, muted economic growth and low interest rates could continue for some time, leaving yields in the cash markets at low levels. However, the market turbulence of the past several years underscores the importance of maintaining a balanced investment portfolio that includes money market funds. In a special report that begins on page 2, “A measure of stability,” we illustrate a number of ways the fund can assist you in meeting your long-term financial goals.
We thank you for selecting American Funds Money Market Fund for your investment portfolio. As always, we appreciate the confidence you have placed in us and look forward to reporting to you again in six months.
Cordially,
/s/ Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Vice Chairman of the Board
/s/ Kristine M. Nishiyama
Kristine M. Nishiyama
President
November 8, 2010
For current information about the fund, visit americanfunds.com.
| Your fund’s annualized seven-day SEC yield as of September 30, 2010* | | | |
| | | | |
| American Funds Money Market Fund | | | |
| (reflecting a fee reimbursement, –0.18% without the reimbursement) | | | 0.00 | % |
| | | | | |
| *The annualized seven-day SEC yield more accurately reflects the fund’s current earnings than does its 30-day yield or total return. | | | | |
[photo of the training wheel attached to a bicycle]
A measure of stability
During the worst days of the recent financial crisis in 2008 and early 2009, many investors fled stock and bond mutual funds, pouring billions of dollars into money market funds in search of relative safety. Since that time, the U.S. economy has emerged from recession, though growth has been tepid, and corporate profitability has improved. Still, the crisis — as well as the uncertainty that continues to loom over the economic landscape — remains an important reminder of the vital role a money market fund can play as part of a diversified portfolio of stock and bond funds.
First and foremost, a money market fund can help provide stability in a balanced investment portfolio. While it does not carry a guarantee, American Funds Money Market Fund is carefully managed to maintain a net asset value of $1.00 per share. Stock and bond prices tend to fluctuate on a daily basis, but the value of a cash fund remains relatively stable and has the potential to earn income. In addition to being a haven from market turmoil, money market funds can play a very practical role in long-term financial plans. Here are some ways American Funds Money Market Fund can help you.
A flexible cash reserve
Having money available in case of emergencies, unexpected expenses or simply to pay monthly bills is important for just about every investor. A money market account is also a convenient place to temporarily hold a bonus or inheritance until a long-term strategy can be designed with an investment professional. Assets are easily accessible; shares of American Funds Money Market Fund can be redeemed online or by phone at any time, and the fund offers free check-writing privileges.
It is also important to note that, unlike a savings or checking account, the fund is actively managed. The experienced professionals of Capital Research and Management Company, the fund’s investment adviser, recognize the value of every dollar invested in the fund and work hard to preserve that value even in the most difficult market environments.
[Begin Sidebar]
The value of a money market fund
After experiencing the volatility of the equity markets in the last few years, and in the face of continuing economic tumult, many investors now recognize the importance of keeping a portion of their portfolios in cash-equivalent assets.
[End Sidebar]
A holding place for periodic investments
Your fund also can be used to accumulate cash designated for regularly scheduled purchases of shares in one or more American Funds equity or fixed-income funds. By investing a consistent amount of money every month or quarter, you can gradually increase your exposure to the stock and bond markets.
This systematic approach to investing, referred to as dollar cost averaging, can help you cope with the natural hesitation to invest in a declining market, when prices may actually be more reasonable. Of course, regular investing does not ensure a profit or protect against loss. You should consider your willingness to continue investing when share prices are declining. However, this disciplined approach — which allows you to buy more fund shares at lower prices during a dip — can help account values grow when prices rise.
Capital preservation
After experiencing the volatility of the equity markets in the last few years, and in the face of continuing economic tumult, many investors now recognize the importance of keeping a portion of their portfolios in cash-equivalent assets. By doing so, they can preserve capital while potentially earning a modest stream of income. This can be particularly important if they are planning a large purchase, such as a house or car, relatively soon.
Whatever the particular need or circumstance, American Funds Money Market Fund — and the stability it offers — can serve as a key component in your overall investment portfolio. n
Notes to financial statements
American Funds Money Market Fund (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The investment objective of the fund is to provide income on cash reserves while preserving capital and maintaining liquidity.
The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:
| Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
| Classes A and 529-A | None | None | None |
| Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
| Class C* | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
| Class 529-C* | None | 1% for redemptions within one year of purchase | None |
| Class 529-E | None | None | None |
| Classes F-1, F-2 and 529-F-1 | None | None | None |
| Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B, 529-B, C and 529-C shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
| 2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations – Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends to shareholders – Dividends paid to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly.
The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share.
Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.
Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of trustees. Various inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments t hat are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Classifications - The fund classifies its assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are refl ected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. At September 30, 2010, all of the fund’s investment securities were classified as Level 2.
Investing in the fund may involve certain risks including, but not limited to, those described below.
Investing in money market securities – The value and liquidity of the securities held by the fund may be affected by changing interest rates, changes in the credit quality of the issuers, changes in credit ratings of the securities and general market conditions. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall.
Credit and liquidity support – Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by the fund could cause the values of these securities to decline.
Investing outside the U.S. – Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social or economic developments in the country or region in which the issuer operates.
Management – The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the techniques and risk analyses employed by the investment adviser in this process may not produce the desired results.
| 5. | Taxation and distributions |
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended September 30, 2010, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal and state tax authorities for tax years before 2009, the year the fund commenced operations.
Distributions – Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2010, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund for financial reporting purposes.
As of September 30, 2010, the tax basis components of unrealized appreciation (depreciation) and cost of investment securities were as follows:
| (dollars in thousands) | |
| Gross unrealized appreciation on investment securities | | $ | 867 | |
| Gross unrealized depreciation on investment securities | | | (44 | ) |
| Net unrealized appreciation on investment securities | | | 823 | |
| Cost of investment securities | | | 21,443,517 | |
| 6. | Fees and transactions with related parties |
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services - On November 24, 2009, shareholders approved amendments to the fund’s Investment Advisory and Service Agreement with CRMC. The agreement provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.295% on the first $1 billion of daily net assets and decreasing to 0.256% on such assets in excess of $34 billion. For the year ended September 30, 2010, the investment advisory services fee was $60,826,000, which was equivalent to an annualized rate of 0.268% of average daily net assets.
Due to lower short-term interest rates, CRMC agreed to pay a portion of fees and expenses. For the year ended September 30, 2010, the total fees paid by CRMC were as follows:
| Share class | | (dollars in thousands) | |
| Class A | | $ | 37,768 | |
| Class B | | | 4,541 | |
| Class C | | | 1,322 | |
| Class F-1 | | | 252 | |
| Class F-2 | | | 98 | |
| Class 529-A | | | 2,284 | |
| Class 529-B | | | 547 | |
| Class 529-C | | | 508 | |
| Class 529-E | | | 134 | |
| Class 529-F-1 | | | 113 | |
| Class R-1 | | | 219 | |
| Class R-2 | | | 6,792 | |
| Class R-3 | | | 4,147 | |
| Class R-4 | | | 1,959 | |
| Class R-5 | | | 745 | |
| Class R-6 | | | 44 | |
| Total | | $ | 61,473 | |
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use a portion (0.15% for Class A, B, 529-A and 529-B shares and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
| Share class | Currently approved limits | Plan limits |
| Class A | 0.15% | 0.15% |
| Class 529-A | 0.15 | 0.50 |
| Classes B and 529-B | 0.90 | 0.90 |
| Classes C, 529-C and R-1 | 1.00 | 1.00 |
| Class R-2 | 0.75 | 1.00 |
| Classes 529-E and R-3 | 0.50 | 0.75 |
| Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC as described on the following page.
Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B, to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third par ties for performing these services.
Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related part y.
Expenses under the agreements described above for the year ended September 30, 2010, were as follows (dollars in thousands):
| | | | | | | | | Administrative services | |
|
Share class | |
Distribution services | | | Transfer agent services | | | CRMC administrative services | | | Transfer agent services | | | Commonwealth of Virginia administrative services | |
| Class A | | $ | - | | | $ | 17,258 | | | Not applicable | | | Not applicable | | | Not applicable | |
| Class B | | | 3,520 | | | | 442 | | | Not applicable | | | Not applicable | | | Not applicable | |
| Class C | | | - | | | Included in administrative services | | | $ | 541 | | | $ | 158 | | | Not applicable | |
| Class F-1 | | | 121 | | | | | | | | 53 | | | | 21 | | | Not applicable | |
| Class F-2 | | | | Not applicable | | | | 15 | | | | 4 | | | Not applicable | |
| Class 529-A | | | - | | | | | | | | 630 | | | | 189 | | | $ | 666 | |
| Class 529-B | | | 372 | | | | | | | | 47 | | | | 17 | | | | 50 | |
| Class 529-C | | | - | | | | | | | | 138 | | | | 48 | | | | 146 | |
| Class 529-E | | | - | | | | | | | | 37 | | | | 11 | | | | 39 | |
| Class 529-F-1 | | | - | | | | | | | | 31 | | | | 9 | | | | 33 | |
| Class R-1 | | | - | | | | | | | | 96 | | | | 32 | | | Not applicable | |
| Class R-2 | | | - | | | | | | | | 2,066 | | | | 3,111 | | | Not applicable | |
| Class R-3 | | | - | | | | | | | | 1,756 | | | | 1,015 | | | Not applicable | |
| Class R-4 | | | - | | | | | | | | 1,070 | | | | 50 | | | Not applicable | |
| Class R-5 | | | | Not applicable | | | | 341 | | | | 6 | | | Not applicable | |
| Class R-6 | | | | Not applicable | | | | 14 | | | | 2 | | | Not applicable | |
| Total | | $ | 4,013 | | | $ | 17,700 | | | $ | 6,835 | | | $ | 4,673 | | | $ | 934 | |
Trustees’ deferred compensation – Since the adoption of the deferred compensation plan in 2009, trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees’ compensation, shown on the accompanying financial statements, includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts.
Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
| 7. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| | | Sales(*) | | | Repurchases(*) | | | Net (decrease) increase | |
| Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| Year ended September 30, 2010 | | | | | | | | | | | | | | | | |
| Class A | | $ | 18,258,836 | | | | 18,258,836 | | | $ | (22,216,445 | ) | | | (22,216,445 | ) | | $ | (3,957,609 | ) | | | (3,957,609 | ) |
| Class B | | | 197,577 | | | | 197,577 | | | | (451,447 | ) | | | (451,447 | ) | | | (253,870 | ) | | | (253,870 | ) |
| Class C | | | 431,573 | | | | 431,573 | | | | (615,330 | ) | | | (615,330 | ) | | | (183,757 | ) | | | (183,757 | ) |
| Class F-1 | | | 86,450 | | | | 86,450 | | | | (107,944 | ) | | | (107,944 | ) | | | (21,494 | ) | | | (21,494 | ) |
| Class F-2 | | | 260,228 | | | | 260,228 | | | | (385,837 | ) | | | (385,837 | ) | | | (125,609 | ) | | | (125,609 | ) |
| Class 529-A | | | 361,732 | | | | 361,732 | | | | (379,806 | ) | | | (379,806 | ) | | | (18,074 | ) | | | (18,074 | ) |
| Class 529-B | | | 20,963 | | | | 20,963 | | | | (33,902 | ) | | | (33,902 | ) | | | (12,939 | ) | | | (12,939 | ) |
| Class 529-C | | | 80,108 | | | | 80,108 | | | | (89,720 | ) | | | (89,720 | ) | | | (9,612 | ) | | | (9,612 | ) |
| Class 529-E | | | 20,462 | | | | 20,462 | | | | (21,147 | ) | | | (21,147 | ) | | | (685 | ) | | | (685 | ) |
| Class 529-F-1 | | | 23,664 | | | | 23,664 | | | | (25,897 | ) | | | (25,897 | ) | | | (2,233 | ) | | | (2,233 | ) |
| Class R-1 | | | 100,796 | | | | 100,796 | | | | (108,920 | ) | | | (108,920 | ) | | | (8,124 | ) | | | (8,124 | ) |
| Class R-2 | | | 1,194,920 | | | | 1,194,920 | | | | (1,234,094 | ) | | | (1,234,094 | ) | | | (39,174 | ) | | | (39,174 | ) |
| Class R-3 | | | 1,157,307 | | | | 1,157,307 | | | | (1,207,265 | ) | | | (1,207,265 | ) | | | (49,958 | ) | | | (49,958 | ) |
| Class R-4 | | | 728,919 | | | | 728,919 | | | | (742,401 | ) | | | (742,401 | ) | | | (13,482 | ) | | | (13,482 | ) |
| Class R-5 | | | 306,643 | | | | 306,643 | | | | (310,360 | ) | | | (310,360 | ) | | | (3,717 | ) | | | (3,717 | ) |
| Class R-6 | | | 93,096 | | | | 93,096 | | | | (70,167 | ) | | | (70,167 | ) | | | 22,929 | | | | 22,929 | |
| Total net increase | | | | | | | | | | | | | | | | | | | | | | | | |
| (decrease) | | $ | 23,323,274 | | | | 23,323,274 | | | $ | (28,000,682 | ) | | | (28,000,682 | ) | | $ | (4,677,408 | ) | | | (4,677,408 | ) |
| | | Sales(*) | | | Issued in connection with merger of The Cash Management Trust of America | | | Issued in connection with merger of The U.S. Treasury Money Fund of America | | | Repurchases(*) | | | Net increase | |
| Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| For the period May 1, 2009(†) to September 30, 2009 | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 6,749,266 | | | | 6,749,266 | | | $ | 16,552,460 | | | | 16,551,835 | | | $ | 3,876,970 | | | | 3,876,312 | | | $ | (7,608,289 | ) | | | (7,608,289 | ) | | $ | 19,570,407 | | | | 19,569,124 | |
| Class B | | | 61,221 | | | | 61,221 | | | | 730,878 | | | | 730,857 | | | | - | | | | - | | | | (166,202 | ) | | | (166,202 | ) | | | 625,897 | | | | 625,876 | |
| Class C | | | 101,750 | | | | 101,750 | | | | 766,696 | | | | 766,676 | | | | - | | | | - | | | | (230,006 | ) | | | (230,006 | ) | | | 638,440 | | | | 638,420 | |
| Class F-1 | | | 16,696 | | | | 16,696 | | | | 85,938 | | | | 85,935 | | | | - | | | | - | | | | (46,427 | ) | | | (46,427 | ) | | | 56,207 | | | | 56,204 | |
| Class F-2 | | | 335,733 | | | | 335,733 | | | | 1,341 | | | | 1,336 | | | | - | | | | - | | | | (200,664 | ) | | | (200,664 | ) | | | 136,410 | | | | 136,405 | |
| Class 529-A | | | 116,721 | | | | 116,721 | | | | 686,414 | | | | 686,393 | | | | - | | | | - | | | | (127,246 | ) | | | (127,246 | ) | | | 675,889 | | | | 675,868 | |
| Class 529-B | | | 8,057 | | | | 8,057 | | | | 56,183 | | | | 56,182 | | | | - | | | | - | | | | (8,650 | ) | | | (8,650 | ) | | | 55,590 | | | | 55,589 | |
| Class 529-C | | | 27,531 | | | | 27,531 | | | | 163,157 | | | | 163,153 | | | | - | | | | - | | | | (38,076 | ) | | | (38,076 | ) | | | 152,612 | | | | 152,608 | |
| Class 529-E | | | 6,106 | | | | 6,106 | | | | 40,387 | | | | 40,387 | | | | - | | | | - | | | | (7,320 | ) | | | (7,320 | ) | | | 39,173 | | | | 39,173 | |
| Class 529-F-1 | | | 6,915 | | | | 6,915 | | | | 35,992 | | | | 35,990 | | | | - | | | | - | | | | (8,984 | ) | | | (8,984 | ) | | | 33,923 | | | | 33,921 | |
| Class R-1 | | | 27,372 | | | | 27,372 | | | | 75,856 | | | | 75,854 | | | | 8,211 | | | | 8,209 | | | | (27,811 | ) | | | (27,811 | ) | | | 83,628 | | | | 83,624 | |
| Class R-2 | | | 314,505 | | | | 314,505 | | | | 1,333,646 | | | | 1,333,600 | | | | 114,202 | | | | 114,160 | | | | (340,213 | ) | | | (340,213 | ) | | | 1,422,140 | | | | 1,422,052 | |
| Class R-3 | | | 277,224 | | | | 277,224 | | | | 1,138,057 | | | | 1,138,018 | | | | 108,807 | | | | 108,771 | | | | (304,190 | ) | | | (304,190 | ) | | | 1,219,898 | | | | 1,219,823 | |
| Class R-4 | | | 141,490 | | | | 141,490 | | | | 645,243 | | | | 645,219 | | | | 117,300 | | | | 117,279 | | | | (171,132 | ) | | | (171,132 | ) | | | 732,901 | | | | 732,856 | |
| Class R-5 | | | 116,585 | | | | 116,585 | | | | 294,903 | | | | 294,892 | | | | 45,366 | | | | 45,355 | | | | (109,819 | ) | | | (109,819 | ) | | | 347,035 | | | | 347,013 | |
| Class R-6 | | | 18,242 | | | | 18,242 | | | | - | | | | - | | | | - | | | | - | | | | (2,748 | ) | | | (2,748 | ) | | | 15,494 | | | | 15,494 | |
| Total net increase | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (decrease) | | $ | 8,325,414 | | | | 8,325,414 | | | $ | 22,607,151 | | | | 22,606,327 | | | $ | 4,270,856 | | | | 4,270,086 | | | $ | (9,397,777 | ) | | | (9,397,777 | ) | | $ | 25,805,644 | | | | 25,804,050 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(*)Includes exchanges between share classes of the fund. | | | | | | | | | | | | | | | | | | | | | | | | | |
(†)Commencement of operations. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net asset value, beginning of period | | | Net investment income(2) | | | Dividends (from net investment income) | | | Net asset value, end of period | | | Total return(3) (4) | | | Net assets, end of period (in millions) | | | Ratio of expenses to average net assets before reimbursements | | | Ratio of expenses to average net assets after reimbursements(4) | | | Ratio of net income to average net assets(4) | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | $ | 1.00 | | | $ | - | | | $ | - | | | $ | 1.00 | | | | .00 | % | | $ | 15,612 | | | | .39 | % | | | .17 | % | | | - | % |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 19,571 | | | | .19 | | | | .08 | | | | - | |
| Class B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 372 | | | | 1.13 | | | | .16 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 626 | | | | .49 | | | | .08 | | | | - | |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 455 | | | | .42 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 638 | | | | .22 | | | | .08 | | | | - | |
| Class F-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 35 | | | | .69 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 56 | | | | .32 | | | | .08 | | | | - | |
| Class F-2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 11 | | | | .32 | | | | .15 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 136 | | | | .20 | | | | .08 | | | | - | |
| Class 529-A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 658 | | | | .51 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 676 | | | | .25 | | | | .08 | | | | - | |
| Class 529-B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 43 | | | | 1.27 | | | | .16 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 56 | | | | .56 | | | | .08 | | | | - | |
| Class 529-C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 143 | | | | .51 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 153 | | | | .25 | | | | .08 | | | | - | |
| Class 529-E: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 38 | | | | .51 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 39 | | | | .25 | | | | .08 | | | | - | |
| Class 529-F-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 32 | | | | .51 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 34 | | | | .25 | | | | .08 | | | | - | |
| Class R-1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 76 | | | | .45 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 84 | | | | .21 | | | | .08 | | | | - | |
| Class R-2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 1,383 | | | | .66 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 1,422 | | | | .33 | | | | .08 | | | | - | |
| Class R-3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 1,170 | | | | .52 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 1,220 | | | | .24 | | | | .08 | | | | - | |
| Class R-4: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 719 | | | | .44 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 733 | | | | .21 | | | | .08 | | | | - | |
| Class R-5: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 343 | | | | .38 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 347 | | | | .19 | | | | .08 | | | | - | |
| Class R-6: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended 9/30/2010 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 38 | | | | .34 | | | | .17 | | | | - | |
| Period from 5/1/2009 to 9/30/2009 | | | 1.00 | | | | - | | | | - | | | | 1.00 | | | | .00 | | | | 15 | | | | .18 | | | | .08 | | | | - | |
(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. | | | | |
(2)Based on average shares outstanding. | | | | | | | | |
(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges. | | | | | |
(4)This column reflects the impact, if any, of certain reimbursements from CRMC. During the periods shown, CRMC agreed to pay a portion of the fees and expenses for all share classes due to lower short-term interest rates. |
| | | | | | | | | | |
| See Notes to Financial Statements | | | | | | | | | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of American Funds Money Market Fund:
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 financial highlights present fairly, in all material respects, the financial position of American Funds Money Market Fund (the "Fund") at September 30, 2010, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year then ended and for the period May 1, 2009 (commencement of operations) through September 30, 2009, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 owned at September 30, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Los Angeles, California
November 8, 2010
Expense example
unaudited
As a shareholder of the fund, you incur certain ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. Certain share classes also incur transaction costs such as contingent deferred sales charges (loads) on redemptions. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2010, through September 30, 2010).
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by th e amount of these fees.
Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | Beginning account value 4/1/2010 | | | Ending account value 9/30/2010 | | | Expenses paid during period* | | | Annualized expense ratio | |
| | | | | | | | | | | | | |
| Class A -- actual return | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 0.95 | | | | .19 | % |
| Class A -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class B -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class B -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class C -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class C -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class F-1 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class F-1 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class F-2 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class F-2 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class 529-A -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class 529-A -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class 529-B -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class 529-B -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class 529-C -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class 529-C -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class 529-E -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class 529-E -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class 529-F-1 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class 529-F-1 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-1 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-1 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-2 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-2 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-3 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-3 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-4 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-4 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-5 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-5 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| Class R-6 -- actual return | | | 1,000.00 | | | | 1,000.00 | | | | 0.95 | | | | .19 | |
| Class R-6 -- assumed 5% return | | | 1,000.00 | | | | 1,024.12 | | | | 0.96 | | | | .19 | |
| | | | | | | | | | | | | | | | | |
| *The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
Board of trustees and other officers
“Independent” trustees1 | | |
| | | |
| | Year first | |
| | elected a | |
| | trustee of | |
| Name and age | the fund2 | Principal occupation(s) during past five years |
| | | |
| Lee A. Ault III, 74 | 2010 | Private investor and corporate director; former |
| | | Chairman of the Board, In-Q-Tel, Inc. |
| | | (technology venture company) |
| | | |
| William H. Baribault, 65 | 2010 | Chairman of the Board and CEO, Oakwood |
| | | Enterprises (private investment and consulting) |
| | | |
| Ambassador | 2009 | Corporate director and author; former U.S. |
| Richard G. Capen, Jr., 76 | | Ambassador to Spain |
| | | |
| James G. Ellis, 63 | 2009 | Dean and Professor of Marketing, Marshall School of |
| | | Business, University of Southern California |
| | | |
| Martin Fenton, 75 | 2009 | Chairman of the Board, Senior Resource |
| Chairman of the Board | | Group LLC (development and management of |
| (Independent and Non-Executive) | | senior living communities) |
| | | |
| Leonard R. Fuller, 64 | 2009 | President and CEO, Fuller Consulting (financial |
| | | management consulting firm) |
| | | |
| W. Scott Hedrick, 65 | 2010 | Founding General Partner, InterWest Partners |
| | | (venture capital firm) |
| | | |
| R. Clark Hooper, 64 | 2009 | Private investor; former President, Dumbarton Group |
| | | LLC (securities industry consulting) |
| | | |
| Merit E. Janow, 52 | 2010 | Professor, Columbia University, School of |
| | | International and Public Affairs; former Member, |
| | | World Trade Organization Appellate Body |
| | | |
| Laurel B. Mitchell, Ph.D., 55 | 2009 | Clinical Professor and Director, Accounting Program, University of Redlands |
| | | |
| Richard G. Newman, 76 | 2009 | Chairman of the Board, AECOM Technology |
| | | Corporation (engineering, consulting and professional |
| | | technical services) |
| | | |
| Frank M. Sanchez, 67 | 2009 | Principal, The Sanchez Family Corporation dba |
| | | McDonald’s Restaurants (McDonald’s licensee) |
| | | |
| Margaret Spellings, 53 | 2009 | President and CEO, Margaret Spellings & Company; |
| | | Executive Vice President, National Chamber |
| | | Foundation and Senior Advisor to the President and |
| | | CEO, U.S. Chamber of Commerce; former United |
| | | States Secretary of Education, United States |
| | | Department of Education — Federal Government |
| | | Agency; former Assistant to the President for |
| | | Domestic Policy, The White House: Federal |
| | | Government, Executive Branch — Domestic Policy |
| | | |
| Steadman Upham, Ph.D., 61 | 2009 | President and Professor of Anthropology, The |
| | | University of Tulsa |
| | | |
| | | |
“Independent” trustees1 | | |
| | Number of | |
| | portfolios | |
| | in fund | |
| | complex3 | |
| | overseen by | |
| Name and age | trustee | Other directorships4 held by trustee |
| | | |
| Lee A. Ault III, 74 | 38 | Anworth Mortgage Asset Corporation; |
| | | Office Depot, |
| Inc. | | |
| | | |
| William H. Baribault, 65 | 38 | None |
| | | |
| Ambassador | 12 | Capital Private Client Services Funds; |
| Richard G. Capen, Jr., 76 | | Carnival Corporation |
| | | |
| James G. Ellis, 63 | 41 | Quiksilver, Inc. |
| | | |
| Martin Fenton, 75 | 41 | Capital Private Client Services Funds |
| Chairman of the Board | | |
| (Independent and Non-Executive) | | |
| | | |
| Leonard R. Fuller, 64 | 41 | None |
| | | |
| W. Scott Hedrick, 65 | 38 | Hot Topic, Inc.; Office Depot, Inc. |
| | | |
| R. Clark Hooper, 64 | 44 | JPMorgan Value Opportunities Fund, Inc.; |
| | | The Swiss Helvetia Fund, Inc. |
| | | |
| Merit E. Janow, 52 | 41 | The NASDAQ Stock Market LLC; |
| | | Trimble Navigation Limited |
| | | |
| Laurel B. Mitchell, Ph.D., 55 | 38 | None |
| | | |
| Richard G. Newman, 76 | 13 | Capital Private Client Services Funds; |
| | | Sempra Energy; SouthWest Water Company |
| | | |
| Frank M. Sanchez, 67 | 38 | None |
| | | |
| Margaret Spellings, 53 | 38 | None |
| | | |
| Steadman Upham, Ph.D., 61 | 41 | None |
H. Frederick Christie, a trustee of the fund since 2009, retired from the board in December 2009. The trustees thank Mr. Christie for his dedication and service to the fund.
“Interested” trustees5 | | |
| | | |
| | Year first | |
| | elected a | |
| | trustee or | Principal occupation(s) during past five years and |
| Name, age and | officer of | positions held with affiliated entities or the |
| position with fund | the fund2 | principal underwriter of the fund |
| | | |
| Paul G. Haaga, Jr., 61 | 2009 | Chairman of the Board, Capital Research |
| Vice Chairman of the Board | | and Management Company; Senior Vice President — |
| | | Fixed Income, Capital Research and Management |
| | | Company |
| | | |
| Abner D. Goldstine, 80 | 2009 | Senior Vice President — Fixed Income, Capital |
| | | Research and Management Company; Director, |
| | | Capital Research and Management Company |
| | | |
| | | |
“Interested” trustees5 | | |
| | | |
| | Number of | |
| | portfolios | |
| | in fund | |
| | complex3 | |
| Name, age and | overseen by | |
| position with fund | trustee | Other directorships4 held by trustee |
| | | |
| Paul G. Haaga, Jr., 61 | 12 | None |
| Vice Chairman of the Board | | |
| | | |
| Abner D. Goldstine, 80 | 2 | None |
The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at 800/421-0180 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
| Other officers | | |
| | | |
| | Year first | |
| | elected | Principal occupation(s) during past five years |
| Name, age and | an officer | and positions held with affiliated entities or the |
| position with fund | of the fund2 | principal underwriter of the fund |
| | | |
| Kristine M. Nishiyama, 40 | 2009 | Senior Vice President and Senior Counsel — Fund |
| President | | Business Management Group, Capital Research and |
| | | Management Company; Vice President and Senior |
| | | Counsel, Capital Bank and Trust Company6 |
| | | |
| Louise M. Moriarty, 51 | 2009 | Vice President — Fixed Income, Capital Research |
| Senior Vice President | | Company6 |
| | | |
| Karen F. Hall, 45 | 2009 | Vice President — Fixed Income, Capital Research |
| Vice President | | and Management Company |
| | | |
| Belinda A. Heard, 48 | 2009 | Vice President — Fixed Income, Capital Research |
| Vice President | | and Management Company |
| | | |
| Kimberly S. Verdick, 46 | 2009 | Vice President — Fund Business Management |
| Secretary | | Group, Capital Research and Management Company |
| | | |
| Ari M. Vinocor, 36 | 2009 | Vice President — Fund Business Management |
| Treasurer | | Group, Capital Research and Management Company |
| | | |
| Courtney R. Taylor, 35 | 2009 | Assistant Vice President — Fund Business |
| Assistant Secretary | | Management Group, Capital Research and |
| | | Management Company |
| | | |
| M. Susan Gupton, 37 | 2009 | Vice President — Fund Business Management |
| Assistant Treasurer | | Group, Capital Research and Management Company |
| | 1The term “independent” trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the 1940 Act. |
| | 2Trustees and officers of the fund serve until their resignation, removal or retirement. |
| | 3Capital Research and Management Company manages the American Funds, consisting of 30 funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® Inc., which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; and Endowments,SM which is available to certain nonprofit organizations. |
| | 4This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a director of a public company or a registered investment company. |
| | 5“Interested persons” within the meaning of the 1940 Act, as amended, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter). |
| | 6Company affiliated with 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, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Counsel
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106
Independent registered public accounting firm
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, CA 90071-2889
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s summary prospectus and prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
American Funds Money Market Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of shareholders of American Funds Money Market Fund, but it also may be used as sales literature when preceded or accompanied by the current summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2010, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
What makes American Funds different?
For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.
Our unique combination of strengths includes these five factors:
| | •A long-term, value-oriented approach |
We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.
| | •An extensive global research effort |
Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.
| | •The multiple portfolio counselor system |
Our unique approach to portfolio management, developed more than 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.
| | •Experienced investment professionals |
American Funds portfolio counselors have an average of 26 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.
| | •A commitment to low management fees |
The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.
American Funds span a range of investment objectives
| | Emphasis on long-term growth through stocks |
| | The Growth Fund of America® |
| | Emphasis on long-term growth and dividends through stocks |
| | Capital World Growth and Income FundSM |
| | International Growth and Income FundSM |
| | The Investment Company of America® |
| | Washington Mutual Investors FundSM |
| | Emphasis on above-average income and growth through stocks and/or bonds |
| | The Income Fund of America® |
| | Emphasis on long-term growth and current income through stocks and bonds |
| | Emphasis on current income through bonds |
| | American High-Income TrustSM |
| | The Bond Fund of AmericaSM |
| | Intermediate Bond Fund of America® |
| | Short-Term Bond Fund of AmericaSM |
| | U.S. Government Securities FundSM |
| | Emphasis on tax-exempt current income through municipal bonds |
| | American Funds Short-Term Tax-Exempt Bond FundSM |
| | American High-Income Municipal Bond Fund® |
| | Limited Term Tax-Exempt Bond Fund of AmericaSM |
| | The Tax-Exempt Bond Fund of America® |
| | State-specific tax-exempt funds |
| | The Tax-Exempt Fund of California® |
| | The Tax-Exempt Fund of Maryland® |
| | The Tax-Exempt Fund of Virginia® |
| | >American Funds Money Market Fund® |
| | •American Funds Target Date Retirement Series® |
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGEAR-959-1110P
Litho in USA AGD/AC/10078-S25014
Printed on paper containing 10% post-consumer waste
Printed with inks containing soy and/or vegetable oil
ITEM 2 – Code of Ethics
