American Funds Tax-Exempt Fund of New York Class F-1 NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-22448

American Funds Tax-Exempt Fund of New York

(Exact Name of Registrant as Specified in Charter)

One Market, Steuart Tower

Suite 2000

San Francisco, California 94105

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (415) 421-9360

Date of fiscal year end: July 31

Date of reporting period: July 31, 2013

Courtney R. Taylor

American Funds Tax-Exempt Fund of New York

One Market, Steuart Tower

Suite 2000

San Francisco, California 94105

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

Invest in municipal bonds
for tax-advantaged income.

	American Funds Short-Term Tax-Exempt Bond Fund^®Limited Term Tax-Exempt Bond Fund of America^® The Tax-Exempt Bond Fund of America^® American High-Income Municipal Bond Fund^® American Funds Tax-Exempt Fund of New York^® The Tax-Exempt Fund of California^®

	Annual reports for the period ended July 31, 2013

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America seeks to provide a high level of current income exempt from federal income tax, consistent with preservation of capital.

American High-Income Municipal Bond Fund seeks to provide a high level of current income exempt from regular federal income tax.

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California state income taxes, with a secondary objective of preservation of capital.

Each fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge had been deducted (maximum 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; 3.75% for The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California), the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2013 (the most recent calendar quarter-end) and the total annual fund operating expense ratios as of the prospectus dated October 1, 2013 (unaudited):

	Cumulative total returns			Average annual total returns						Gross
Class A shares	1 year			5 years			10 years/Lifetime*			expense ratios

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		–2.09	%		0.90	%		1.43	%		0.59	%
Limited Term Tax-Exempt Bond Fund of America		–1.85			3.78			3.12			0.60

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		–2.76			4.23			3.69			0.55
American High-Income Municipal Bond Fund		–0.57			4.69			3.94			0.69
American Funds Tax-Exempt Fund of New York		–3.77			—			2.86			0.66
The Tax-Exempt Fund of California		–2.26			4.85			3.86			0.63

*	Applicable only to American Funds Tax-Exempt Fund of New York, which began operations on 11/1/10.All other funds reflect 10-year results.

For other share class results, visit americanfunds.com and americanfundsretirement.com.

The five- and 10-year investment results for American Funds Short-Term Tax-Exempt Bond Fund include the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore are not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of those periods. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers (and expense reimbursements for American Funds Short-Term Tax-Exempt Bond Fund and American Funds Tax-Exempt Fund of New York), without which results would have been lower. The adviser has committed to retain any reimbursements for American Funds Tax-Exempt Fund of New York only through September 30, 2013. Visit americanfunds.com for more information.

A summary of each fund’s 30-day yield can be found on page 3.

Individual funds are listed in this report according to their risk potential, with state-specific funds listed last.

Contents

1	Letter to investors

4	Fund reviews

	Investment portfolios

17	American Funds Short-Term Tax-Exempt Bond Fund

23	Limited Term Tax-Exempt Bond Fund of America

29	The Tax-Exempt Bond Fund of America

35	American High-Income Municipal Bond Fund

40	American Funds Tax-Exempt Fund of New York

45	The Tax-Exempt Fund of California

50	Financial statements

86	Boards of trustees and other officers

Fellow investors:

We are pleased to present you with this annual report for six American Funds municipal bond funds. This report covers the period from August 1, 2012, through July 31, 2013, for American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund and American Funds Tax-Exempt Fund of New York. The report also covers the period from September 1, 2012, through July 31, 2013, for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California, whose fiscal years have changed.

The municipal bond market enjoyed relative strength during much of the fiscal year, but the period closed with a broad selloff that ensued in May, triggered by signs of a stronger economy, rising U.S. Treasury yields and indications from the Federal Reserve that it might begin to reduce its bond purchase program. For the 12 months ended July 31, 2013, the Barclays Municipal Bond Index, a broad measure of the investment-grade tax-exempt bond market, recorded a 2.19% loss. By way of comparison, the Barclays U.S. Aggregate Index, a broad measure of the investment-grade taxable fixed-income market, declined 1.91%. In general, shorter duration municipal bonds fared better than longer duration issues. Although below investment-grade securities (those rated Ba/BB and below) sustained some of the sharpest declines in the final two months of the period, overall returns for these higher yielding bonds were generally better. Barclays High Yield Municipal Bond Index gained 0.80% during the fiscal year. All market indexes referenced in this report are unmanaged and, therefore, have no expenses.

Against this backdrop, results for these six American Funds tax-exempt bond funds were generally negative. Total returns ranged from 0.16% for American Funds Short-Term Tax-Exempt Bond Fund to –3.16% for American Funds Tax-Exempt Fund of New York. While we are disappointed with the overall results, we are gratified that all six funds outpaced their respective peer groups, as measured by Lipper. (Turn to pages 4 through 16 for detailed results for each fund.)

Economic and market overview

Fixed-income markets experienced two distinct phases during the fiscal year. For much of the period, yields for U.S. Treasuries and many other categories of bonds remained near historic lows as investors focused on the slow pace of the economic recovery and the possible effects of automatic tax increases and across-the-board federal government budget cuts. As has been the case over the past few years, enthusiasm for municipal bonds was relatively high during these first months of the fiscal year. With the Fed holding short-term interest rates near zero, investors were drawn to the municipal market in part by the relatively attractive yields of some tax-exempt bonds compared with taxable securities.

However, many of these conditions reversed during the closing months of the year, creating a highly challenging and volatile climate for bond investors. Housing market data indicated that home prices increased in March and April at their fastest pace since 2006, triggering greater optimism about the healing economy. During May and June, rising interest rates and indications from the Fed that it might reduce its monthly asset purchases fueled a sharp selloff in Treasuries. The yield on the benchmark 10-year note rose 82 basis points to 2.52% in two months.

American Funds Tax-Exempt Funds

In a volatile three months for fixed-income securities broadly, municipal bonds suffered particularly acute declines from May through July, reflecting, in part, the relative illiquidity in the market. As investors became increasingly concerned about rising interest rates and possible Fed action, redemptions from municipal bond mutual funds spiked. Outflows exceeded $1 billion each week of June, including a record $4.5 billion the week of June 26, according to data from Lipper.

The municipal market came under further pressure in July, when Detroit filed for bankruptcy protection — the largest U.S. city ever to do so. It is important to point out that the circumstances leading to Detroit’s bankruptcy are particular to that city’s financial struggles and are in no way directly related to most of the thousands of issuers in the vast municipal bond market. However, given the size and scope of the city’s bankruptcy — its debt is estimated to be between $18 billion and $20 billion — the proceedings could contribute to heightened volatility in the short term. As such, we are paying close attention to developments. We also note that the funds had very limited exposure to Detroit’s debt during the period.

Looking ahead
As the economy strengthens, we remain alert to the potential impact of rising interest rates and possible Fed action, but we remind investors that these developments will likely take some time. With this in mind, we have worked hard to position the funds relatively conservatively, carefully seeking a balance between risk and potential reward.

We expect continued volatility in the coming months. The direction of U.S. fiscal policy is uncertain, and political gridlock could resurface as the debt ceiling deadline approaches. That said, there are reasons for optimism. The fiscal outlook for many state and local governments is improving. What’s more, the recent market selloff was indiscriminate, and we are finding a number of long-term investment opportunities at what we believe are attractive prices. We continue to focus on the long term and base each of our investment decisions on in-depth research of individual bond issuers as well as economic and market conditions.

We thank you for the confidence you have placed in us, and we look forward to reporting back to you in six months.

Sincerely,

Brenda S. Ellerin

President, American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America

Neil L. Langberg

President, The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California

Karl J. Zeile

President, American High-Income Municipal Bond Fund and American Funds Tax-Exempt Fund of New York

September 9, 2013

For current information about the funds, visit americanfunds.com.

2	American Funds Tax-Exempt Funds

Funds’ 30-day yields

Below is a summary of each fund’s 30-day yield and 12-month distribution rate for Class A shares as of August 31, 2013. Both measures reflect the 2.50%/3.75% maximum sales charge. Each fund’s 30-day yield is calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula. The SEC yield reflects the rate at which each fund is earning income on its current portfolio of securities while the distribution rate reflects the funds’ past dividends paid to shareholders. Accordingly, the funds’ SEC yields and distribution rates may differ. The equivalent taxable yield assumes a 43.4% tax rate.¹

Class A shares	SEC 30-day yield			Equivalent taxable yield			12-month distribution rate

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		0.42	%		0.74	%		1.17	%
Limited Term Tax-Exempt Bond Fund of America		1.17			2.07			2.45

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		2.77			4.89			3.44
American High-Income Municipal Bond Fund		4.15			7.33			4.35
American Funds Tax-Exempt Fund of New York		2.80			5.67	²		2.98
The Tax-Exempt Fund of California		3.24			6.60	³		3.75

¹	Based on 2013 federal tax rates. For the year 2013, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly).Thus, taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
²	For investors in the 50.59% federal, New York state and New York City tax bracket.
³	For investors in the 50.93% federal and California state tax bracket.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Bond ratings, which typically range from Aaa/AAA (highest) to D (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. Income may be subject to state or local income taxes and/or federal alternative minimum taxes. Also, certain other income (such as distributions from gains on the sale of certain bonds purchased at less than par value, for The Tax-Exempt Bond Fund of America), as well as capital gain distributions, may be taxable. High-yield/lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade/higher rated bonds. American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California are more susceptible to factors adversely affecting issuers of each state’s tax-exempt securities than a more widely diversified municipal bond fund. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

The fund produced a positive total return of 0.16%, exceeding the 0.08% result of the Lipper Short Municipal Debt Funds Average, a peer group measure. The unmanaged Barclays Municipal Short 1–5 Years Index, which has no expenses, returned 0.50%. See page 16 for additional results.

For the fiscal year, the fund paid monthly dividends totaling 12.5 cents a share, amounting to a federally tax-exempt income return of 1.22% for investors who reinvested dividends. This is equivalent to a taxable income return of 2.16% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return may also be exempt from some state and local taxes.

In a turbulent market environment, the fund’s focus on high-quality issues with shorter durations helped it generate a positive return. Many of the fund’s largest investments were among sectors where revenue bonds support critical local enterprises, including airports (9.9%), hospital facilities (9.0%) and electric utilities (5.1%).

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 1.20% tax-exempt distribution rate³as of July 31, 2013.

									The fund’s tax-exempt
	If your taxable income is …					… then your federal			distribution rate of 1.20% is
	Single			Joint		tax rate is …			equivalent to a taxable rate of …
$	0 –	8,925	$	0 –	17,850		10.0	%		1.33	%
	8,926 –	36,250		17,851 –	72,500		15.0			1.41
	36,251 –	87,850		72,501 –	146,400		25.0			1.60
	87,851 –	183,250		146,401 –	223,050		28.0			1.67
	183,251 –	398,350		223,051 –	398,350		36.8	¹		1.90
	398,351 –	400,000		398,351 –	450,000		38.8	¹		1.96
	Over 400,000			Over 450,000			43.4	¹		2.12


¹	For the year 2013, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2013 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phase-out of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 2.50% on the $10,000 investment.¹Thus, the net amount invested was $9,750. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

4	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	Consists of the Lipper Tax-Exempt Money Market Funds Index through July 31, 2009 (the period ended prior to the fund’s conversion from a tax-exempt money market fund to a short-term tax-exempt bond fund), and the Barclays Municipal Short 1–5 Years Index thereafter. Results of the Lipper Tax-Exempt Money Market Funds Index do not reflect any sales charges. The Barclays index is unmanaged and, therefore, has no expenses.
³	Prior to August 7, 2009, the fund was operated as a money market fund and did not have an initial sales charge.
⁴	In 2009, the fund changed its fiscal year-end from September 30 to July 31.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	5 years	10 years

Class A shares	–2.30%	0.89%	1.43%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

The five-and 10-year investment results include the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore are not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of those periods. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.

Quality ratings*

Percent of net assets

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

The fund’s total return was –0.13%. That result outpaced the –1.84% return of the fund’s peer group, as measured by the Lipper Intermediate Municipal Debt Funds Average. By way of comparison, the return for the unmanaged Barclays Municipal Short-Intermediate 1–10 Years Index, which has no expenses, was –0.18%. See page 16 for fund results over longer periods of time.

For the fiscal year, the fund paid monthly dividends totaling about 40 cents a share, amounting to a federally tax-exempt income return of 2.47% for investors who reinvested dividends. This is equivalent to a taxable income return of 4.36% for investors in the 43.4%¹maximum federal tax bracket.

The fund invests in investment-grade bonds (those rated Baa/BBB and above) with short- to medium-length maturities. This relatively conservative approach helped it provide a measure of relative stability during the year. At the end of the year, debt rated A and higher accounted for 82.7% of the portfolio’s holdings. The portfolio included significant holdings of revenue bonds in a variety of sectors, including hospital facilities (12.2%), airports (12.2%) and electric utilities (7.3%).

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.45% tax-exempt distribution rate³as of July 31, 2013.

										The fund’s tax-exempt
	If your taxable income is …						… then your federal			distribution rate of 2.45% is
	Single		Joint				tax rate is …			equivalent to a taxable rate of …
$	0 –	8,925		$	0 –	17,850		10.0	%		2.72	%
	8,926 –	36,250			17,851 –	72,500		15.0			2.88
	36,251 –	87,850			72,501 –	146,400		25.0			3.27
	87,851 –	183,250			146,401 –	223,050		28.0			3.40
	183,251 –	398,350			223,051 –	398,350		36.8	¹		3.88
	398,351 –	400,000			398,351 –	450,000		38.8	¹		4.00
	Over 400,000				Over 450,000			43.4	¹		4.33

¹	For the year 2013, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly).Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2013 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phase-out of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

6	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The market index is unmanaged and, therefore, has no expenses.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	5 years	10 years

Class A shares	–2.63%	3.68%	3.44%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

Quality ratings*

Percent of net assets

Bond ratings, which typically range from Aaa/AAA (highest) to D (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. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies. The ratings are not covered by the Report of Independent Registered Public Accounting Firm.

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

For the 11 months ended July 31, 2013, the fund recorded a –1.93% decline. The result was better than both the –3.26% total return of the Lipper General & Insured Municipal Debt Funds Average, a peer group measure, and the –2.30% return of the Barclays Municipal Bond Index, which is unmanaged and has no expenses. Results for longer time periods can be found on page 16.

For the 11-month period, the fund paid monthly dividends totaling about 40.1 cents a share, amounting to a federally tax-exempt income return of 3.11% for investors who reinvested dividends. This is equivalent to a taxable income return of 5.49% for investors in the 43.4%¹maximum federal tax bracket. The fund does not invest in bonds subject to the Alternative Minimum Tax (AMT).

In advance of the turbulent period that closed out the fiscal year, the fund’s managers adopted a relatively conservative approach, focusing on shorter duration securities. At fiscal year-end the fund’s average duration was seven years. Although the fund’s overall return was negative, this approach helped results on a relative basis. The fund’s managers continued to concentrate on revenue bonds, an area of the market where they believe credit research is most useful. With investments in more than 2,000 individual securities representing 50 U.S. states and territories, the fund also maintained broad geographic diversification.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.40% tax-exempt distribution rate³as of July 31, 2013.

										The fund’s tax-exempt
	If your taxable income is …						… then your federal			distribution rate of 3.40% is
	Single		Joint				tax rate is …			equivalent to a taxable rate of …
$	0 –	8,925		$	0 –	17,850		10.0	%		3.78	%
	8,926 –	36,250			17,851 –	72,500		15.0			4.00
	36,251 –	87,850			72,501 –	146,400		25.0			4.53
	87,851 –	183,250			146,401 –	223,050		28.0			4.72
	183,251 –	398,350			223,051 –	398,350		36.8	¹		5.38
	398,351 –	400,000			398,351 –	450,000		38.8	¹		5.56
	Over 400,000				Over 450,000			43.4	¹		6.01

¹	For the year 2013, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly).Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2013 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phase-out of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment.¹Thus, the net amount invested was $9,625. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

8	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	5 years	10 years

Class A shares	–5.34%	4.01%	3.93%

*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Quality ratings*

Percent of net assets

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

The fund recorded a total return of –0.25%, outpacing the –2.62% return of the Lipper High-Yield Municipal Debt Funds Average, a measure of the fund’s peer group. The unmanaged Barclays High Yield Municipal Bond Index, which has no expenses, advanced 0.80%. For fund results over extended time frames, see page 16.

For the period, the fund paid monthly dividends totaling 63.4 cents a share, amounting to a federally tax-exempt income return of 4.27% for investors who reinvested dividends. This is equivalent to a taxable income return of 7.54% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return may also be exempt from some state and local taxes.

Although higher yielding bonds sustained particularly steep declines in the final three months of the fiscal year, generally speaking lower rated bonds outpaced the broader market in part because of strong demand for yield in the earlier part of the period.

The fund’s managers rely on intensive credit research in their efforts to identify bonds that they believe offer the best potential return given their risk. This research-driven approach has resulted in a broadly diversified portfolio. We believe strong credit selection bolstered the fund’s result on a relative basis as it avoided some of the more troubled issuers in the market. While the fund’s overall total return was negative for the year, we believe the portfolio is well positioned for the long term.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 4.22% tax-exempt distribution rate³as of July 31, 2013.

											The fund’s tax-exempt
If your taxable income is …								… then your federal			distribution rate of 4.22% is
Single				Joint				tax rate is …			equivalent to a taxable rate of …
$	0	–	8,925	$	0	–	17,850		10.0	%		4.69	%
	8,926	–	36,250		17,851	–	72,500		15.0			4.96
	36,251	–	87,850		72,501	–	146,400		25.0			5.63
	87,851	–	183,250		146,401	–	223,050		28.0			5.86
	183,251	–	398,350		223,051	–	398,350		36.8	¹		6.68
	398,351	–	400,000		398,351	–	450,000		38.8	¹		6.90
Over 400,000				Over 450,000					43.4	¹		7.46

¹	For the year 2013, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2013 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phase-out of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

10	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	5 years	10 years

Class A shares	–4.00%	4.49%	4.00%

*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Quality ratings*

Percent of net assets

Bond ratings, which typically range from Aaa/AAA (highest) to D (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. If agency ratings differ, securities are placed in the lowest-rated category. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies.

The ratings are not covered by the Report of Independent Registered Public Accounting Firm.

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

The fund registered a decline of –3.16%. That result bested the –3.85% total return of the Lipper New York Municipal Debt Funds Average, a measure of its peer group. The unmanaged Barclays New York Municipal Index, which has no expenses, declined –2.25%. The fund’s lifetime (since 11/1/10) average annual total return can be found on page 16.

For the fiscal year, the fund paid monthly dividends totaling about 31 cents a share, representing an income return of 2.90% for those who reinvested dividends. For investors in the 50.59% combined effective federal, New York state and New York City tax bracket, this is equivalent to a taxable income return of 5.87%.

Generally speaking, New York municipal bonds lagged the broader market during the period, in part due to a healthy level of issuance within the state.

The fund’s managers sought to maintain a broadly diversified portfolio throughout the period, including holdings spanning the credit spectrum and representing a wide variety of sectors and issuers. A modest exposure to securities issued by Puerto Rico contributed to the fund’s negative return, as Puerto Rico’s credit rating was downgraded by Moody’s during the year.

Tax-exempt yields vs. taxable yields

Find your estimated 2013 taxable income below to determine your combined federal and New York state tax rate,^1,2then look in the right-hand column to see what you would have had to earn from a taxable investment to equal the fund’s 2.93% tax-exempt distribution rate³at July 31, 2013.

								… then your combined			The fund’s tax-exempt
If your taxable income is …								federal and New York			distribution rate of 2.93% is
Single				Joint				state tax rate is …			equivalent to a taxable rate of …
$	0	–	8,200	$	0	–	16,450		13.60	%		3.39	%
	8,201	–	8,925		16,451	–	17,850		14.05			3.41
	8,926	–	11,300		17,851	–	22,600		18.83			3.61
	11,301	–	13,350		22,601	–	26,750		19.46			3.64
	13,351	–	20,550		26,751	–	41,150		20.02			3.66
	20,551	–	36,250		41,151	–	72,500		20.48			3.68
	36,251	–	77,150		72,501	–	146,400		29.84			4.18
	77,151	–	87,850			–			29.99			4.19
		–			146,401	–	154,350		32.64			4.35
	87,851	–	183,250		154,351	–	223,050		32.79			4.36
	183,251	–	205,850		223,051	–	308,750		41.00			4.97
	205,851	–	398,350		308,751	–	398,350		41.13			4.98
	398,351	–	400,000		398,351	–	450,000		42.99			5.14
	400,001	–	1,029,250		450,001	–	2,058,550		47.28			5.56
Over 1,029,250				Over 2,058,550					48.39			5.68

¹	Income generated by the fund’s investments is also generally exempt from New York City taxes, offering additional tax advantages to New York City residents.
²	Based on 2013 federal and New York state tax rates. (State rates from 4.00% to 8.82% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates assume full deductibility of state taxes.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

12	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

(for the period November 1, 2010, to July 31, 2013, with dividends reinvested)

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	Lifetime (since 11/1/10)

Class A shares	–6.77%	2.29%

*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. These reimbursements may be adjusted or discontinued by the investment adviser at any time, subject to any restrictions in the fund’s prospectus. Visit americanfunds.com for more information.

Quality ratings*

Percent of net assets

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

For the 11 months ended July 31, 2013, the fund declined –1.45%. That result was better than the –2.95% total return of the fund’s peer group, as measured by the Lipper California Municipal Debt Funds Average. By way of comparison, the unmanaged Barclays California Municipal Index, which has no expenses, registered a –1.79% return. See page 16 for fund results over extended time periods.

For the period, the fund paid monthly dividends totaling about 58.5 cents a share, amounting to an income return of 3.39% for investors who reinvested dividends. This is equivalent to a taxable income return of 6.91% for investors in the 50.93% effective combined federal and California tax bracket.

The health of the California economy improved markedly over the fiscal period, and the state reported that income and sales tax receipts had increased. With higher income and sales taxes in effect this year, this trend is likely to continue if the economy continues to gain strength.

During the period, the fund’s managers began to position the fund more defensively, opting for shorter duration bonds. The portfolio remains heavily invested in revenue bonds, such as those issued by airports, water and sewer facilities, and electric utilities.

Tax-exempt yields vs. taxable yields

Find your estimated 2013 taxable income below to determine your combined federal and California tax rate,* then look in the right-hand column to see what you would have had to earn from a taxable investment to equal the fund’s 3.68% tax-exempt distribution rate^†at July 31, 2013.

								… then your combined			The fund’s tax-exempt
If your taxable income is …								federal and California			distribution rate of 3.68% is
Single				Joint				state tax rate is …			equivalent to a taxable rate of …
$	0	–	7,582	$	0	–	15,164		10.90	%		4.13	%
	7,583	–	8,925		15,165	–	17,850		11.80			4.17
	8,926	–	17,976		17,851	–	35,952		16.70			4.42
	17,977	–	28,371		35,953	–	56,742		18.40			4.51
	28,372	–	36,250		56,743	–	72,500		20.10			4.61
	36,251	–	39,384		72,501	–	78,768		29.50			5.22
	39,385	–	49,774		78,769	–	99,548		31.00			5.33
	49,775	–	87,850		99,549	–	146,400		31.98			5.41
	87,851	–	183,250		146,401	–	223,050		34.70			5.64
	183,251	–	254,250		223,051	–	398,350		42.68			6.42
	254,251	–	305,100			–			43.31			6.49
	305,101	–	398,350			–			43.94			6.56
		–			398,351	–	450,000		44.49			6.63
	398,351	–	400,000			–			45.72			6.78
		–			450,001	–	508,500		48.66			7.17
		–			508,501	–	610,200		49.23			7.25
	400,001	–	508,500		610,201	–	1,000,000		49.80			7.33
	508,501	–	1,000,000		1,000,001	–	1,017,000		50.36			7.41
Over 1,000,000				Over 1,017,000					50.93			7.50

^*	Based on 2013 federal and 2013 California tax rates. (State rates from 1.0% to 13.3% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates paid by California residents may be lower than those shown due to the availability of income tax deductions.
^†	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2013. Capital gains distributions, if any, are added back at the maximum offering price to determine the rate.

14	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2013*

	1 year	5 years	10 years

Class A shares	–4.73%	4.68%	4.12%

*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Quality ratings*

Percent of net assets

American Funds Tax-Exempt Funds

Results at a glance

For periods ended July 31, 2013, with distributions reinvested

	Cumulative total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime¹

American Funds Short-Term Tax-Exempt Bond Fund (Class A shares)		0.16	%		—	%		—	%		1.73	%
Barclays Municipal Short 1-5 Years Index^2,3		0.50			—			—			2.25
Lipper Short Municipal Debt Funds Average		0.08			—			—			1.61

Limited Term Tax-Exempt Bond Fund of America (Class A shares)		–0.13			4.20			3.70			4.35
Barclays Municipal Short-Intermediate 1-10 Years Index^2,4		–0.18			4.15			3.93			4.56
Lipper Intermediate Municipal Debt Funds Average		–1.84			4.09			3.68			4.44

The Tax-Exempt Bond Fund of America (Class A shares)		–1.65			4.81			4.32			6.74
Barclays Municipal Bond Index²		–2.19			5.07			4.71			–	⁵
Lipper General & Insured Municipal Debt Funds Average		–3.04			4.48			3.94			6.49

American High-Income Municipal Bond Fund (Class A shares)		–0.25			5.29			4.40			5.43
Barclays Municipal Bond Index²		–2.19			5.07			4.71			5.64
Barclays High Yield Municipal Bond Index²		0.80			6.08			6.10			–	⁵
Lipper High-Yield Municipal Debt Funds Average		–2.62			4.37			4.11			4.89

American Funds Tax-Exempt Fund of New York (Class A shares)		–3.16			—			—			3.72
Barclays New York Municipal Index²		–2.25			—			—			3.00
Lipper New York Municipal Debt Funds Average		–3.85			—			—			2.51

The Tax-Exempt Fund of California (Class A shares)		–1.03			5.48			4.52			5.69
Barclays California Municipal Index²		–1.63			5.35			4.96			—	⁵
Lipper California Municipal Debt Funds Average		–2.74			4.73			4.15			5.62

¹	Since 8/7/09 (American Funds Short-Term Tax-Exempt Bond Fund), 10/6/93 (Limited Term Tax-Exempt Bond Fund of America), 10/3/79 (The Tax-Exempt Bond Fund of America), 9/26/94 (American High-Income Municipal Bond Fund), 11/1/10 (American Funds Tax-Exempt Fund of New York) and 10/28/86 (The Tax-Exempt Fund of California).
²	The index is unmanaged and, therefore, has no expenses.
³	Barclays Municipal Short 1–5 Years Index is a market value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to five years.
⁴	Barclays Municipal Short-Intermediate 1-10 Years Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years.
⁵	This index did not exist at the fund’s inception.

16	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Summary investment portfolio July 31, 2013

Bonds, notes & other debt instruments 81.02%	Principal amount (000)		Value (000)		Percent of net assets
California 8.27%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-E-3, 0.76% 2047 (put 2019)¹	$	3,000	$	3,018		.39	%
Various Purpose G.O. Ref. Bonds, 5.00% 2018		3,000		3,500		.46
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-B, 5.00% 2015		1,000		1,077
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-C, 5.00% 2034 (put 2014)		4,500		4,724
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-B, 5.00% 2043 (put 2017)		1,145		1,298		1.15
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-D, 5.00% 2043 (put 2020)		1,500		1,705
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2011-A-1, 0.56% 2038 (put 2014)¹		7,500		7,517
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2012-B-1, 0.36% 2047 (put 2015)¹		530		530		1.31
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2013-A-1, 0.34% 2047 (put 2016)¹		2,000		1,994
Los Angeles County Metropolitan Transportation Auth., Proposition A, Sales Tax Rev. Ref. Bonds, Series 2013-A, 5.00% 2018		3,000		3,532		.46
Other securities				34,602		4.50
				63,497		8.27

Colorado 1.06%
Dept. of Transportation, Transportation Rev. Ref. Anticipation Notes, 5.00% 2016		5,000		5,690		.74
Other securities				2,413		.32
				8,103		1.06

Florida 9.46%
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2015		1,500		1,611
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 6.00% 2017		1,300		1,503
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.00% 2015		1,000		1,074		1.33
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.00% 2016		4,905		5,416
Citizens Property Insurance Corp., High-Risk Account Secured Rev. Ref. Bonds, Series 2007-A, National insured, 5.00% 2015		550		586
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2015		4,000		4,320
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2016		4,295		4,767		1.18
City of Lakeland, Energy System Rev. Ref. Bonds, Series 2012, 0.81% 2017¹		3,800		3,777		.49
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2005-B, AMT, Assured Guaranty Municipal insured, 5.00% 2016		3,000		3,266		.43
State Board of Education, Public Education Capital Outlay Ref. Bonds, Series 2009-B, 5.00% 2015		3,000		3,250		.42
City of Tampa, Utility Tax Rev. Ref. Bonds, National insured, 5.00% 2015		3,615		3,954		.51
Other securities				39,140		5.10
				72,664		9.46

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Illinois 3.85%
Unemployment Insurance Fund Building Receipts Rev. Bonds (Illinois Dept. of Employment Security), Series 2012-A, 5.00% 2016	$	4,000	$	4,538		.59	%
Other securities				25,043		3.26
				29,581		3.85

Indiana 2.80%
Health and Educational Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2011-A-1, 1.50% 2036 (put 2014)		2,000		2,025
Health and Educational Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2005-A-5, 2.00% 2027 (put 2017)		2,000		2,002		.93
Health Fac. Fin. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2005-A-6, 5.00% 2027 (put 2014)		3,000		3,118
Other securities				14,379		1.87
				21,524		2.80

Michigan 3.65%
Kent Hospital Fin. Auth., Rev. Ref. Bonds (Spectrum Health System), Series 2008-A, 5.50% 2047 (put 2015)		5,000		5,361		.70
Regents of the University of Michigan, General Rev. Ref. Bonds, Series 2012-F, 0.46% 2043 (put 2016)¹		3,000		3,000		.39
Other securities				19,645		2.56
				28,006		3.65

Minnesota 1.98%
G.O. State Ref. Bonds, Series 2007, 5.00% 2013		4,000		4,000
G.O. State Various Purpose Ref. Bonds, Series 2010-D, 4.00% 2013		4,650		4,650		1.13
Other securities				6,541		.85
				15,191		1.98

Missouri 1.11%
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport), Series 2007-B, AMT, Assured Guaranty Municipal insured, 5.00% 2016		5,000		5,515		.72
Other securities				3,033		.39
				8,548		1.11

Nevada 2.40%
Clark County, Airport System Rev. Bonds, Series 2004-A-1, AMT, FGIC-National insured, 5.50% 2017		4,500		4,691		.61
Other securities				13,768		1.79
				18,459		2.40

18	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount (000)		Value (000)		Percent of net assets
New Jersey 2.84%
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2010-2, 4.00% 2013	$	2,000	$	2,024
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2010-2, 5.00% 2014		2,000		2,117
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2011-A-1, AMT, 0.575% 2020¹		460		457		1.38	%
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 4.00% 2017		3,500		3,751
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 5.00% 2018		2,000		2,228
Other securities				11,256		1.46
				21,833		2.84

New Mexico 0.88%
Educational Assistance Foundation, Education Loan Rev. Ref. Bonds, Series 2009-C, AMT, 3.90% 2014		3,000		3,093		.40
Other securities				3,650		.48
				6,743		.88

New York 8.61%
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.61% 2025¹		5,000		5,066
City of New York, G.O. Bonds, Fiscal 2010 Series C, 5.00% 2014		1,000		1,048
City of New York, G.O. Bonds, Fiscal 2010 Series C, 5.00% 2015		1,000		1,090
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2015		1,000		1,090		1.52
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2015		1,000		1,090
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2017		1,000		1,145
City of New York, G.O. Bonds, Fiscal 2012 Series I, 5.00% 2018		1,000		1,165
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2017		3,000		3,348		.43
Triborough Bridge and Tunnel Auth., General Rev. Bonds, Series 2008-B, 5.00% 2025 (put 2013)		4,000		4,053		.53
Other securities				47,063		6.13
				66,158		8.61

North Carolina 0.39%
Medical Care Commission, Health Care Facs. Rev. Ref. Bonds (Wake Forest Baptist Obligated Group), Series 2012-C, 0.80% 2033 (put 2017)¹		3,000		3,000		.39
North Dakota 0.52%
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2012-A, 3.75% 2042		3,785		3,960		.52
Ohio 3.04%
City of Cleveland, Airport System Rev. Bonds, Series 2000-C, Assured Guaranty Municipal insured, 5.00% 2017		2,500		2,779
City of Cleveland, Airport System Rev. Ref. Bonds, Series 2011-A, Assured Guaranty Municipal insured, 5.00% 2016		4,500		4,915		1.00
Other securities				15,655		2.04
				23,349		3.04

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Oregon 1.33%
Dept. of Administrative Services, Ref. Certs. of Part., Series 2009-D, 5.00% 2013	$	3,345	$	3,386		.44	%
Other securities				6,859		.89
				10,245		1.33

Pennsylvania 2.15%
Econ. Dev. Fncg. Auth., Unemployment Compensation Rev. Bonds, Series 2012-B, 5.00% 2021		4,000		4,572		.59
Other securities				11,962		1.56
				16,534		2.15

South Carolina 0.40%
Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2012-C, 5.00% 2013		3,000		3,048		.40

Tennessee 2.02%
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-1-C, 4.50% 2037		1,410		1,551
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-2-C, 4.00% 2038		980		1,058
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2011-1-A, AMT, 4.50% 2031		2,725		2,922		1.15
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2012-1-A, AMT, 4.50% 2038		1,175		1,238
Housing Dev. Agcy., Residential Fin. Program Bonds, Issue 2013-1-C, 3.00% 2038		2,000		2,074
Memphis-Shelby County Airport Auth., Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.00% 2016		3,220		3,536		.46
Other securities				3,138		.41
				15,517		2.02

Texas 5.75%
Grand Parkway Transportation Corp., System Toll Rev. Bonds, Series 2013-C, 2.00% 2017 (put 2014)		5,000		5,040		.66
Houston Independent School Dist. (Harris County), Limited Tax Schoolhouse Bonds, Series 2013-B, 1.00% 2035 (put 2014)		6,000		6,027
Houston Independent School Dist. (Harris County), Limited Tax Schoolhouse Bonds, Series 2013-B, 2.00% 2037 (put 2016)		3,400		3,489		1.24
Other securities				29,611		3.85
				44,167		5.75

Vermont 0.53%
Student Assistance Corp., Education Loan Rev. Notes, Series 2012-B, AMT, 1.773% 2022¹		4,054		4,066		.53
Virginia 0.43%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2005, 5.50% 2026 (preref. 2014)		3,080		3,285		.43
Washington 2.65%
Public Utility Dist. No. 2 of Grant County, Electric System Rev. Ref. Bonds, Series 2011-I, 5.00% 2017		3,750		4,227		.55
Other securities				16,092		2.10
				20,319		2.65

20	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount (000)		Value (000)		Percent of net assets
Wisconsin 1.30%
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-2, 4.00% 2043 (put 2019)	$	1,000	$	1,087		.14	%
Other securities				8,902		1.16
				9,989		1.30

Other states & U.S. territories 13.60%
Other securities				104,427		13.60

Total bonds, notes & other debt instruments (cost: $614,838,000)				622,213		81.02

Short-term securities 19.86%
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (ExxonMobil Project), Series 2001, 0.05% 2029¹		2,000		2,000
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-C, 0.05% 2033¹		3,500		3,500
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp., Exempt Facs. Rev. Ref. Bonds (ExxonMobil Project), Series 2001-B, AMT, 0.05% 2029¹		16,200		16,200		4.38
Lincoln County, Wyoming, Pollution Control Rev. Bonds (Exxon Project), Series 1987-B, AMT, 0.04% 2017¹		5,900		5,900
Lincoln County, Wyoming, Pollution Control Rev. Bonds (Exxon Project), Series 1987-C, AMT, 0.04% 2017¹		6,000		6,000
Maricopa County, Arizona Pollution Control Corp., Pollution Control Rev. Ref. Bonds (Arizona Public Service Co. Palo Verde Project), Series 2009-B, JPMorgan Chase LOC, 0.05% 2029¹		5,000		5,000		.65
California Infrastructure and Econ. Dev. Bank, Demand Rev. Bonds (Buck Institute for Age Research), Series 2001, U.S. Bank LOC, 0.04% 2037¹		12,000		12,000		1.56
California Health Facs. Fncg. Auth., Rev. Bonds (St. Joseph Health System), Series 2011-B, 0.05% 2041¹		1,000		1,000		.13
California Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-C, JPMorgan Chase LOC, 0.06% 2026¹		4,100		4,100		.53
State of Connecticut, Health and Educational Facs. Auth., Rev. Bonds (Yale University Issue), Series 2001-V-1, 0.03% 2036¹		550		550
State of Connecticut, Health and Educational Facs. Auth., Rev. Bonds						.67
(Yale University Issue), Series Y-3, 0.03% 2035¹		4,600		4,600
Jackson County, Mississippi, Port Fac. Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2023¹		2,700		2,700
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 0.05% 2030¹		1,200		1,200
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030¹		7,400		7,400
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.05% 2030¹		3,700		3,700		3.69
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-C, 0.04% 2030¹		5,250		5,250
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-B, 0.04% 2030¹		1,000		1,000
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-A, 0.04% 2035¹		7,095		7,095

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Short-term securities (continued)	Principal amount (000)		Value (000)			Percent of net assets
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 2004-B, 0.05% 2034¹	$	1,000	$	1,000
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-A, 0.05% 2030¹		2,800		2,800			.79	%
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-D, 0.04% 2030¹		2,300		2,300
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Ref. Bonds (Saint Louis University), Series 2008-A-2, 0.04% 2035¹		8,050		8,050			1.05
New Hampshire Health and Education Facs. Auth., Rev. Ref. Bonds (Dartmouth College Issue), Series 2007-A, 0.05% 2031¹		9,500		9,500			1.24
City of New York, New York, G.O. Bonds, Fiscal 1993 Series A-7, JPMorgan Chase LOC, 0.05% 2020¹		6,300		6,300
City of New York, New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.04% 2038¹		800		800			1.59
City of New York, New York, G.O. Bonds, Fiscal 2012 Series G, Subseries G-5, 0.03% 2042¹		5,100		5,100
Charlotte-Mecklenburg Hospital Auth., North Carolina, Carolinas HealthCare System, Health Care Rev. Ref. Bonds, Series 2007-B, Wells Fargo Bank LOC, 0.04% 2045¹		9,575		9,575			1.25
Other securities				17,885			2.33

Total short-term securities (cost: $152,505,000)				152,505			19.86
Total investment securities (cost: $767,343,000)				774,718			100.88
Other assets less liabilities				(6,709	)		(.88	)

Net assets			$	768,009			100.00	%

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

22	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2013

Bonds, notes & other debt instruments 90.49%	Principal amount (000)		Value (000)		Percent of net assets
Alabama 1.20%
Federal Aid Highway Fin. Auth., Federal Highway Grant Anticipation Bonds, Series 2012, 5.00% 2022	$	8,385	$	9,583		.31	%
Other securities				27,230		.89
				36,813		1.20

Arizona 2.32%
Industrial Dev. Auth. of the County of Maricopa, Health Fac. Rev. Ref. Bonds (Catholic Healthcare West), Series 2009-C, 5.00% 2038 (put 2014)		8,500		8,803		.28
Other securities				62,725		2.04
				71,528		2.32

California 11.80%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.96% 2045 (put 2023)¹		10,000		9,917		.32
Econ. Recovery Bonds, Ref. Series 2009-A, 5.00% 2020		9,000		10,557
Econ. Recovery Bonds, Ref. Series 2009-B, 5.00% 2023 (put 2014)		11,250		11,742		.72
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-D, 5.00% 2034 (put 2016)		7,500		8,312		.27
City of Long Beach, Harbor Rev. Ref. Bonds, Series 1998-A, AMT, FGIC-National insured, 6.00% 2016		8,430		9,570		.31
Los Angeles Unified School Dist. (County of Los Angeles), G.O. Ref. Bonds, Series 2011-A-1, 5.00% 2018		7,010		8,220		.27
Port of Oakland, Rev. Ref. Bonds, Series 2012-P, AMT, 5.00% 2021		7,750		8,680		.28
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Ref. Bonds (Republic Services, Inc. Project), Series 2002-C, AMT, 5.25% 2023 (put 2017)²		8,250		8,918		.29
Public Facs. Fncg. Auth. of the City of San Diego, Sewer Rev. Bonds, Series 2009-A, 5.00% 2017		8,500		9,729		.32
City of San Jose, Airport Rev. Bonds, Series 2007-A, AMT, AMBAC insured, 5.50% 2020		7,820		8,646		.28
Other securities				269,143		8.74
				363,434		11.80

Connecticut 0.47%
Special Tax Obligation Ref. Bonds, Transportation Infrastructure Purposes, Series 2009-1, 5.00% 2019		8,550		10,066		.33
Other securities				4,522		.14
				14,588		.47

District of Columbia 1.44%
University Rev. Bonds (Georgetown University Issue), Series 2001-B, 4.70% 2031 (put 2018)		8,500		9,468		.31
Other securities				34,722		1.13
				44,190		1.44

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Florida 9.77%
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2018	$	2,000	$	2,271
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2019		5,000		5,678
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 5.50% 2017		10,035		11,426		1.21	%
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.00% 2015		8,000		8,591
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.25% 2017		8,350		9,430
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2008-A, 5.00% 2014		13,500		14,077		.46
Jacksonville Aviation Auth., Rev. Bonds, Series 2006, AMT, AMBAC insured, 5.00% 2018		7,585		8,408		.27
Miami-Dade County, Aviation Rev. Bonds, Series 2010-A, 5.00% 2021		2,250		2,558
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2020		5,750		6,481
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2021		11,600		12,874
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2003-E, AMT, National insured, 5.375% 2017		2,000		2,290
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2005-B, AMT, XLCA insured, 5.00% 2018		1,000		1,082		1.09
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-A, 5.75% 2022		1,500		1,695
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.50% 2018		3,580		4,198
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.75% 2021		2,000		2,290
Other securities				207,601		6.74
				300,950		9.77

Georgia 2.49%
DeKalb County Hospital Auth., Rev. Ref. Anticipation Certificates (DeKalb Medical Center, Inc. Project), Series 2010, 5.25% 2020		8,750		9,667		.31
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		16,000		18,870		.61
Public Gas Partners, Inc., Gas Project Rev. Ref. Bonds (Gas Supply Pool No. 1), Series A, 5.00% 2018		10,930		12,468		.41
Other securities				35,672		1.16
				76,677		2.49

Hawaii 0.78%
Airports System Rev. Bonds, Series 2010-B, AMT, 5.00% 2018		9,900		11,178		.36
Other securities				12,763		.42
				23,941		.78
Illinois 6.95%
Regional Transportation Auth. of Cook, DuPage, Kane, Lake, McHenry and Will Counties, G.O. Rev. Ref. Bonds, Series 2003-A, FGIC-National insured, 5.50% 2018		7,720		9,072		.29
Fin. Auth., Rev. Ref. Bonds (University of Chicago Medical Center), Series 2009-A, 5.00% 2018		7,500		8,575		.28
State Toll Highway Auth., Toll Highway Priority Rev. Ref. Bonds, Series 1998-A, Assured Guaranty Municipal insured, 5.50% 2015		9,825		10,536		.34
Other securities				185,860		6.04
				214,043		6.95

24	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

		Principal amount (000)		Value (000)	Percent of net assets
Indiana 3.47%
Fin. Auth., Private Activity Bonds (Ohio River Bridges East End Crossing Project), Series 2013-B, AMT, 5.00% 2019	$	10,440	$	11,295	.37	%
Indianapolis Airport Auth., Special Fac. Rev. Ref. Bonds (Federal Express Corp. Project), Series 2004, AMT, 5.10% 2017		20,545		22,836	.74
Other securities				72,677	2.36
				106,808	3.47

Maryland 0.80%
Transportation Auth., Airport Parking Rev. Ref. Bonds (Baltimore/Washington International Thurgood Marshall Airport Projects), Series 2012-B, AMT, 5.00% 2020		8,150		9,309	.30
Other securities				15,430	.50
				24,739	.80

Michigan 4.06%
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.25% 2016		3,000		3,249
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, FGIC-National insured, 5.00% 2018		1,000		1,100
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2008-A, AMT, Assured Guaranty insured, 5.25% 2018		1,745		1,909
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2017		4,365		4,881
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2018		1,990		2,232
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2019		1,000		1,123	1.20
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		10,000		11,142
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-B, 5.00% 2019		1,000		1,143
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2018		5,490		6,158
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2019		3,560		3,999
Other securities				88,190	2.86
				125,126	4.06

Nevada 2.30%
Clark County, Highway Rev. (Motor Vehicle Fuel Tax) Ref. Bonds, Series 2011, 5.00% 2020		12,320		14,342	.47
Las Vegas Valley Water Dist., G.O. (Limited Tax) Ref. Bonds, Series 2011-C, 5.00% 2019		7,760		9,056	.29
Other securities				47,537	1.54
				70,935	2.30

New Jersey 2.38%
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014		8,000		8,415	.28
Other securities				64,730	2.10
				73,145	2.38

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)		Principal amount (000)		Value (000)	Percent of net assets
New York 7.82%
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018	$	8,500	$	9,503	.31	%
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2017		10,000		11,411	.37
Other securities				219,908	7.14
				240,822	7.82

South Carolina 0.66%
Transportation Infrastructure Bank, Rev. Ref. Bonds, Series 2005-A, AMBAC insured, 5.25% 2018		8,000		9,439	.30
Other securities				10,999	.36
				20,438	.66

Texas 7.86%
G.O. Bonds, College Student Loan Bonds, Series 2011-A, AMT, 5.00% 2019		1,700		1,973
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2019		1,000		1,169	.40
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017		4,000		4,578
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2020		4,000		4,616
City of Houston, Airport System Rev. Ref. Bonds, Series 2011-A, AMT, 5.00% 2019		10,000		11,355	.37
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		9,850		10,920	.36
Other securities				207,387	6.73
				241,998	7.86

Washington 2.52%
Energy Northwest, Electric Rev. Ref. Bonds (Project 1), Series 2012-A, 5.00% 2017		12,500		14,367	.47
Various Purpose G.O. Bonds, Series 1992-B, 6.40% 2017		9,400		10,585	.34
Other securities				52,773	1.71
				77,725	2.52

Wisconsin 1.44%
Health and Educational Facs. Auth., Rev. Ref. Bonds (Aurora Health Care, Inc.), Series 2012-A, 5.00% 2021		7,765		8,560	.28
Other securities				35,631	1.16
				44,191	1.44

Other states & U.S. territories 19.96%
Other securities				614,622	19.96

Total bonds, notes & other debt instruments (cost: $2,662,498,000)				2,786,713	90.49

26	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Short-term securities 9.08%	Principal amount (000)		Value (000)		Percent of net assets
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-A, 0.05% 2033¹	$	12,000	$	12,000
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (ExxonMobil Project), Series 2001, 0.05% 2029¹		1,900		1,900
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-B, 0.05% 2033¹		850		850
Parish of East Baton Rouge, Louisiana, Pollution Control Rev. Ref. Bonds (Exxon Project), Series 1989, 0.04% 2019¹		3,190		3,190
Parish of St. Bernard, Louisiana, Exempt Fac. Rev. Bonds (Mobil Oil Corp. Project), Series 1996, AMT, 0.05% 2026¹		3,700		3,700		1.20	%
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2000 AMT, 0.05% 2030¹		5,800		5,800
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001-A, AMT, 0.05% 2030¹		5,865		5,865
Sublette County, Wyoming, Pollution Control Rev. Bonds (Exxon Project), Series 1984, 0.04% 2014¹		3,500		3,500
City of Los Angeles, California, Dept. of Water and Power, Power System Rev. Ref. Bonds, Series 2001-B, Subseries B-3, 0.05% 2034¹		10,400		10,400		.34
California Municipal Fin. Auth., Recovery Zone Fac. Bonds (Chevron U.S.A. Inc. Project), Series 2010-A, 0.04% 2035¹		500		500
Jackson County, Mississippi, Port Fac. Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2023¹		1,900		1,900
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 0.05% 2030¹		1,000		1,000
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-C, 0.04% 2030¹		3,645		3,645
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-E, 0.05% 2030¹		2,000		2,000
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-G, 0.04% 2030¹		1,300		1,300		.98
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.04% 2035¹		2,145		2,145
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-I, 0.04% 2035¹		8,400		8,400
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-G, 0.05% 2035¹		3,500		3,500
Uinta County, Wyoming, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2020¹		5,800		5,800
Illinois Fin. Auth., Rev. Bonds (Resurrection Health Care), Series 2005-B, JPMorgan Chase LOC, 0.06% 2035¹		8,700		8,700		.28
Louisiana Public Facs. Auth., Rev. Bonds (Dynamic Fuels, LLC Project), Series 2008, JPMorgan Chase LOC, 0.05% 2033¹		9,400		9,400		.31
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-C, 0.04% 2030¹		1,700		1,700
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 2004-A, 0.05% 2034¹		4,795		4,795		.43
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Ref. Bonds (Washington University), Series 1996-B, 0.05% 2030¹		6,700		6,700
New York State Housing Fin. Agcy, New York, Gotham West Housing Fin. Agcy. Rev. Bonds, Series 2011-A-1, Wells Fargo & Co. LOC, 0.03% 2045¹		25,700		25,700		.83

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Short-term securities (continued)	Principal amount (000)		Value (000)		Percent of net assets
State of Texas, Tax and Rev. Anticipation Notes, Series 2012, 2.50% 8/30/2013	$	65,000	$	65,132		2.11	%
Other securities				80,180		2.60

Total short-term securities (cost: $279,690,000)				279,702		9.08
Total investment securities (cost: $2,942,188,000)				3,066,415		99.57
Other assets less liabilities				13,050		.43

Net assets			$	3,079,465		100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $12,481,000, which represented .41% of the net assets of the fund.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

28	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2013

Bonds, notes & other debt instruments 90.67%	Principal amount (000)		Value (000)		Percent of net assets
Arizona 3.43%
Health Facs. Auth., Rev. Bonds (Banner Health), Series 2007-B, 0.994% 2037¹	$	22,200	$	19,794		.21	%
Other securities				305,359		3.22
				325,153		3.43

California 12.10%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.00% 2034		20,000		20,656		.22
Econ. Recovery Bonds, Ref. Series 2009-A, 5.25% 2021		17,750		20,893		.22
Various Purpose G.O. Bonds, 5.00% 2038		17,000		17,387
Various Purpose G.O. Bonds, 5.00% 2041		5,000		5,077
Various Purpose G.O. Bonds, 5.25% 2018		7,825		9,183
Various Purpose G.O. Bonds, 5.25% 2028		10,185		11,057
Various Purpose G.O. Bonds, 5.25% 2028		3,000		3,259
Various Purpose G.O. Bonds, 6.00% 2038		8,000		8,963
Various Purpose G.O. Bonds, 6.00% 2039		10,000		11,314		1.15
Various Purpose G.O. Bonds, 6.50% 2033		7,000		8,204
Various Purpose G.O. Ref. Bonds, 5.00% 2023		16,705		19,035
Various Purpose G.O. Ref. Bonds, 5.00% 2032		4,000		4,160
Various Purpose G.O. Ref. Bonds, 5.00% 2038		7,500		7,656
Various Purpose G.O. Ref. Bonds, 5.00% 2042		3,955		4,015
Orange County Sanitation Dist., Certs. of Part., Series 2007-B, Assured Guaranty Municipal insured, 5.00% 2037		25,000		25,868		.27
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		19,600		22,044		.23
Turlock Irrigation Dist., Rev. Ref. Bonds, Series 2011, 5.50% 2041		25,990		27,080		.29
Other securities				920,980		9.72
				1,146,831		12.10

Colorado 2.37%
Health Facs. Auth., Health Facs. Rev. Ref. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042		19,500		18,425		.19
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		23,765		25,506		.27
Other securities				180,860		1.91
				224,791		2.37

District of Columbia 1.00%
University Rev. Bonds (Georgetown University Issue), Series 2001-C, 5.25% 2034 (put 2023)		24,000		26,475		.28
Other securities				68,262		.72
				94,737		1.00

Florida 8.78%
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 6.00% 2017		23,000		26,594		.28
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2016		25,500		28,304		.30
Orlando-Orange County Expressway Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2035		27,350		27,863		.30
Other securities				749,389		7.90
				832,150		8.78

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Georgia 3.42%
City of Atlanta, Water and Wastewater Rev. Ref. Bonds, Series 1999-A, FGIC-National insured, 5.50% 2022	$	20,500	$	23,873		.25	%
Dev. Auth. of Burke County, Pollution Control Rev. Bonds (Oglethorpe Power Corp. Vogtle Project), Series 2008-E, 7.00% 2023		19,670		23,178		.24
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		23,000		27,125		.29
Other securities				249,916		2.64
				324,092		3.42

Illinois 8.34%
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		27,500		30,619		.32
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2008-B, 5.50% 2033		18,210		19,638
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2038		25,850		26,217		.49
Other securities				713,899		7.53
				790,373		8.34

Louisiana 2.13%
Citizens Property Insurance Corp., Assessment Rev. Bonds, Series 2006-B, AMBAC insured, 5.00% 2019		22,000		23,839		.25
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032		23,500		24,720		.26
Other securities				153,840		1.62
				202,399		2.13

Michigan 2.96%
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		34,730		27,541		.29
Other securities				253,472		2.67
				281,013		2.96

Nevada 2.56%
Clark County, Airport System Rev. Bonds, Series 2004-A-2, FGIC-National insured, 5.00% 2036		20,000		20,031
Clark County, Airport System Rev. Bonds, Series 2010-B, 5.125% 2036		18,000		18,489		.41
Other securities				204,015		2.15
				242,535		2.56

New Hampshire 0.42%
Business Fin. Auth., Rev. Bonds (Elliot Hospital Obligated Group Issue), Series 2009-A, 6.125% 2039		18,115		18,886		.20
Other securities				20,475		.22
				39,361		.42

30	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)		Percent of net assets
New Jersey 2.45%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041	$	27,500	$	20,139		.21	%
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2013		5,500		5,533
Transit Corp., Certs. of Part., Series 2005-A, FGIC-National insured, 5.00% 2018		7,750		8,375
Transit Corp., Certs. of Part., Series 2005-A, FGIC-National insured, 5.00% 2021		5,000		5,357
Transportation Trust Fund Auth., Transportation System Bonds (Capital Appreciation Bonds), Series 2010-A, 0% 2030		10,000		3,943
Transportation Trust Fund Auth., Transportation System Bonds (Capital Appreciation Bonds), Series 2010-A, 0% 2040		9,000		1,803
Transportation Trust Fund Auth., Transportation System Bonds, Series 2004-A, FGIC-National insured, 5.75% 2025		5,000		5,913
Transportation Trust Fund Auth., Transportation System Bonds, Series 2008-A, 6.00% 2038		3,255		3,666
Transportation Trust Fund Auth., Transportation System Bonds, Series 2011-B, 5.50% 2031		2,000		2,134		.99
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2020		10,000		11,722
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2021		10,000		11,661
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2022		20,000		23,150
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Series 2005-B, AMBAC insured, 5.25% 2023		8,000		9,206
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Series 2013-A, 5.00% 2020		1,000		1,153
Other securities				118,941		1.25
				232,696		2.45

New York 5.04%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		21,000		22,890		.24
Seneca Nation of Indians, Rev. Bonds, Series A, 5.00% 2023²		18,900		19,112		.20
Other securities				435,817		4.60
				477,819		5.04

Ohio 3.71%
Air Quality Dev. Auth., Air Quality Dev. Rev. Bonds (FirstEnergy Generation Corp. Project), Series 2009-A, 5.70% 2020		16,215		18,619
Air Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2009-C, 5.625% 2018		17,200		19,373		.40
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		39,585		31,625
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		38,655		28,929		.94
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		34,125		27,905
Other securities				224,950		2.37
				351,401		3.71

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
South Carolina 1.40%
Building Equity Sooner for Tomorrow (BEST), Installment Purchase Rev. Ref. Bonds (School Dist. of Greenville County, South Carolina Project), Series 2006, 5.00% 2023	$	19,845	$	22,225		.23	%
Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2008-A, 5.50% 2038		20,000		21,490		.23
Other securities				89,396		.94
				133,111		1.40

Texas 9.83%
Bexar County Hospital Dist., Combination Tax and Rev. Certificates of Obligation, Series 2008, 5.00% 2032		20,500		21,410		.23
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2028		1,500		1,665
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2011-A, 5.00% 2021		1,400		1,664
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2013-B, 5.00% 2026		1,600		1,809
Public Fin. Auth., G.O. Bonds, Series 2007, 5.00% 2023		1,525		1,736		.46
Public Fin. Auth., G.O. Bonds, Series 2007, 5.00% 2024		1,525		1,727
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 4.75% 2037		10,000		10,212
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017		2,250		2,575
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2021		12,545		14,452
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2028		7,000		7,491
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.50% 2018		1,000		1,142
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.625% 2033		15,100		16,030
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021		3,760		4,319
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023		12,570		14,387
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025		5,000		5,682
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		2,150		2,384		1.23
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2033		11,000		11,635
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2038		8,500		8,935
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.00% 2028		16,000		18,067
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.10% 2028		5,000		5,671
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.25% 2039		5,000		5,430
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2034		1,500		1,601
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2038		5,000		5,329
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-B, 5.00% 2038		8,000		7,977
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)		8,600		8,469
Other securities				750,332		7.91
				932,131		9.83

Washington 2.68%
Energy Northwest, Electric Rev. Ref. Bonds (Project 1), Series 2012-A, 5.00% 2017		20,000		22,987		.24
Health Care Facs. Auth., Rev. Ref. Bonds (Virginia Mason Medical Center), Series 2007-A, 6.125% 2037		18,500		19,235		.21
Other securities				211,476		2.23
				253,698		2.68

32	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)		Percent of net assets
Wisconsin 1.83%
General Fund Annual Appropriation Rev. Ref. Bonds, Series 2009-A, 6.00% 2036	$	52,960	$	60,341		.64	%
Other securities				113,358		1.19
				173,699		1.83

Other states & U.S. territories 16.22%
Other securities				1,537,689		16.22

Total bonds, notes & other debt instruments (cost: $8,386,425,000)				8,595,679		90.67

Short-term securities 9.00%
California Statewide Communities Dev. Auth., Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 2002, 0.04% 2024¹		2,900		2,900
Jackson County, Mississippi, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1992, 0.05% 2016¹		5,555		5,555
Jackson County, Mississippi, Port Fac. Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2023¹		16,600		16,600
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030¹		6,000		6,000
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-B, 0.05% 2030¹		2,600		2,600		.97
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-E, 0.05% 2030¹		5,005		5,005
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-H, 0.05% 2035¹		24,000		24,000
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-K, 0.05% 2035¹		23,900		23,900
Uinta County, Wyoming, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2020¹		5,655		5,655
California Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-E, JPMorgan Chase LOC, 0.04% 2026¹		23,600		23,600		.25
Illinois Fin. Auth., Demand Rev. Ref. Bonds (Elmhurst Memorial Healthcare), Series 2008-B, JPMorgan Chase LOC, 0.05% 2048¹		24,425		24,425		.26
Illinois Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2009-E-1, JPMorgan Chase LOC, 0.06% 2043¹		5,650		5,650
Illinois Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2010-B, Wells Fargo LOC, 0.04% 2044¹		11,250		11,250		.24
Illinois Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2011-B, Wells Fargo LOC, 0.04% 2044¹		5,750		5,750
Illinois Fin. Auth., Rev. Bonds (Resurrection Health Care), Series 2005-B, JPMorgan Chase LOC, 0.06% 2035¹		21,030		21,030		.22
Kentucky Econ. Dev. Fin. Auth., Demand Hospital Rev. Ref. Bonds (Baptist Healthcare System Obligated Group), Series 2009-B-1, JPMorgan Chase LOC, 0.06% 2038¹		16,255		16,255
Kentucky Econ. Dev. Fin. Auth., Demand Hospital Rev. Ref. Bonds (Baptist Healthcare System Obligated Group), Series 2009-B-2, JPMorgan Chase LOC, 0.05% 2038¹		15,195		15,195		.33
Massachusetts Health and Educational Facs. Auth., Demand Rev. Bonds (Dana Farber Cancer Institute Issue), Series 2008-L1, JPMorgan Chase LOC, 0.05% 2046¹		20,000		20,000		.21

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Short-term securities (continued)	Principal amount (000)		Value (000)		Percent of net assets
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-A, 0.05% 2030¹	$	6,000	$	6,000
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-C, 0.04% 2030¹		4,000		4,000
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-D, 0.04% 2030¹		4,500		4,500
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 2000-C, 0.04% 2040¹		900		900		.23	%
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Bonds (Washington University), Series 2004-A, 0.05% 2034¹		4,360		4,360
Health and Educational Facs. Auth. of the State of Missouri, Demand Educational Facs. Rev. Ref. Bonds (Washington University), Series 1996-B, 0.05% 2030¹		2,000		2,000
New Jersey Transportation Trust Fund Auth., Transportation System Bonds, Series 2009-C, 0.03% 2032¹		6,250		6,250		.07
Tarrant County, Texas, Cultural Education Facs. Fin. Corp., Hospital Rev. Ref. Bonds (Methodist Hospitals of Dallas Project), Series 2008-A, JPMorgan Chase LOC, 0.05% 2041¹		20,895		20,895		.22
State of Texas, Tax and Rev. Anticipation Notes, Series 2012, 2.50% 8/30/2013		175,000		175,355		1.85
Other securities				393,772		4.15

Total short-term securities (cost: $853,365,000)				853,402		9.00
Total investment securities (cost: $9,239,790,000)				9,449,081		99.67
Other assets less liabilities				30,997		.33

Net assets			$	9,480,078		100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $72,863,000, which represented .77% of the net assets of the fund.

Key to abbreviations

Agcy. = Agency

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

34	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Summary investment portfolio July 31, 2013

Bonds, notes & other debt instruments 93.67%	Principal amount (000)		Value (000)		Percent of net assets
Arizona 3.19%
Industrial Dev. Auth. of the County of Pima, Water and Wastewater Rev. Bonds (Global Water Resources, LLC Project), Series 2007, AMT, 6.55% 2037	$	17,000	$	17,106
Industrial Dev. Auth. of the County of Pima, Water and Wastewater Rev. Bonds (Global Water Resources, LLC Project), Series 2008, AMT, 7.50% 2038		10,000		10,432		.99	%
Other securities				60,983		2.20
				88,521		3.19

California 14.73%
Veterans G.O. Bonds, Series CD, AMT, 4.60% 2032		9,750		9,090		.33
Morongo Band of Mission Indians, Enterprise Rev. Ref. Bonds, Series 2008-B, 6.50% 2028		9,750		10,629		.38
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 2045		11,000		9,219		.33
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		12,750		14,340		.52
Redev. Agcy. of the City of San Jose, Tax Allocation Ref. Bonds (Merged Area Redev. Project), Series 2006-C, National insured, 3.75% 2028		11,175		9,125		.33
Tobacco Securitization Auth. of Southern California, Tobacco Settlement Asset-backed Rev. Ref. Bonds (San Diego County Tobacco Asset Securitization Corp.), Series 2006-A, 5.125% 2046		13,935		10,620		.38
Other securities				345,445		12.46
				408,468		14.73

Colorado 4.61%
City and County of Denver, Dept. of Aviation, Special Facs. Airport Rev. Ref. Bonds (United Air Lines Project), Series 2007-A, AMT, 5.25% 2032		18,000		16,803
City and County of Denver, Dept. of Aviation, Special Facs. Airport Rev. Ref. Bonds (United Air Lines Project), Series 2007-A, AMT, 5.75% 2032		2,905		2,868		.71
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2035		14,500		13,065		.47
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		14,800		15,884		.58
Other securities				79,065		2.85
				127,685		4.61

Florida 8.44%
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2021		8,500		9,467		.34
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Ref. Bonds (Shell Point/ Alliance Obligated Group, Shell Point Village/Alliance Community Project), Series 2007, 5.00% 2029		13,425		12,917		.47
Lee County, Airport Rev. Ref. Bonds, Series 2011-A, AMT, 5.375% 2032		9,935		10,077		.36
Seminole Tribe of Florida, Series A, 5.25% 2027¹		10,000		10,408		.37
Other securities				191,235		6.90
				234,104		8.44

Illinois 5.43%
City of Chicago, O’Hare International Airport, Special Fac. Rev. Ref. Bonds (American Airlines, Inc. Project), Series 2007, 5.50% 2030²		4,000		4,500		.16
Fin. Auth., Rev. Ref. Bonds (Franciscan Communities, Inc.), Series 2007-A, 5.50% 2027		8,550		8,583		.31
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2010-A, 6.00% 2039		8,935		9,643		.35

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Illinois (continued)
Fin. Auth., Rev. Ref. Bonds (Provena Health), Series 2009-A, 7.75% 2034	$	9,800	$	11,912		.43	%
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		11,500		12,804		.46
Other securities				103,203		3.72
				150,645		5.43

Indiana 2.34%
Fin. Auth., Midwestern Disaster Relief Rev. Bonds (Ohio Valley Electric Corp. Project), Series 2012-A, 5.00% 2039		9,175		8,594		.31
Other securities				56,280		2.03
				64,874		2.34

Iowa 0.95%
Fin. Auth., Midwestern Disaster Area Rev. Ref. Bonds (Iowa Fertilizer Co. Project), Series 2013, 5.25% 2025		11,250		10,690		.39
Other securities				15,612		.56
				26,302		.95

Louisiana 1.64%
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032		9,500		9,993		.36
Other securities				35,523		1.28
				45,516		1.64

Massachusetts 1.53%
Dev. Fin. Agcy., Resource Recovery Rev. Ref. Bonds (Covanta Energy Project), Series 2012-C, AMT, 5.25% 2042		11,500		10,004		.36
Other securities				32,498		1.17
				42,502		1.53

Michigan 5.10%
City of Detroit, Water Supply System Rev. Bonds, Series 2011-A, 5.25% 2041		12,450		11,412		.41
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		28,355		22,486
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.875% 2042		5,440		5,258		1.00
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.00% 2034		9,000		8,646
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, FGIC-National insured, 5.00% 2018		1,000		1,100
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-B, AMT, 5.00% 2037		3,085		2,943
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		5,000		5,571		1.18
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2022		2,000		2,166
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2028		12,000		12,070
Other securities				69,642		2.51
				141,294		5.10

36	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)		Percent of net assets
Missouri 1.88%
State Environmental Improvement and Energy Resources Auth., Water Facs. Rev. Ref. Bonds (Missouri-American Water Co. Project), Series 2006, AMT, AMBAC insured, 4.60% 2036	$	10,000	$	8,835		.32	%
Other securities				43,345		1.56
				52,180		1.88

New Jersey 3.22%
Econ. Dev. Auth., Energy Fac. Rev. Bonds (ACR Energy Partners, LLC Project), Series 2011-A, AMT, 10.50% 2032¹		13,000		12,883		.46
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.125% 2023		4,500		4,303
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.25% 2029		15,000		14,142
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2003, AMT, 5.50% 2033		3,500		3,318		.95
Econ. Dev. Auth., Special Fac. Rev. Ref. Bonds (Continental Airlines, Inc. Project), Series 2012, AMT, 5.75% 2027		4,500		4,391
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041		15,250		11,168		.40
Other securities				39,172		1.41
				89,377		3.22

New York 3.60%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		13,360		14,562		.53
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.625% 2025		15,200		16,702
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.75% 2031		2,130		2,341		.77
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 8.00% 2028		2,000		2,218
Other securities				63,861		2.30
				99,684		3.60

Ohio 4.39%
Air Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2009-C, 5.625% 2018		8,580		9,664		.35
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		18,170		14,516
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		16,780		12,558		1.36
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		13,000		10,630
County of Gallia, Hospital Facs. Rev. Ref. and Improvement Bonds (Holzer Health System Obligated Group Project), Series 2012-A, 8.00% 2042		11,000		11,761		.42
Other securities				62,716		2.26
				121,845		4.39

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Oklahoma 0.67%
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2001-B, AMT, 5.50% 2035	$	10,000	$	9,102		.33	%
Other securities				9,493		.34
				18,595		.67

Puerto Rico 0.75%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042		15,140		11,841		.43
Other securities				8,943		.32
				20,784		.75

Texas 8.10%
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs. Rev. Ref. Bonds (Dow Chemical Co. Project), Series 2002-A-4, AMT, 5.95% 2033		13,545		14,449		.52
Cities of Dallas and Fort Worth, Dallas/Fort Worth International Airport, Joint Rev. Improvement Bonds, Series 2012-D, AMT, 5.00% 2042		10,500		9,959		.36
Dallas-Fort Worth International Airport Fac. Improvement Corp., American Airlines, Inc. Rev. Bonds, Series 1999, AMT, 6.375% 2035²		17,750		18,992		.69
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal E Project), Series 2001, AMT, 6.75% 2021		3,000		3,001
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal E Project), Series 2001, AMT, 6.75% 2029		13,100		13,105		1.03
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.50% 2030		9,300		9,514
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.625% 2038		3,000		3,073
Sanger Texas Industrial Dev. Corp., Industrial Dev. Rev. Ref. Bonds (Texas Pellets Project), Series 2012-B, AMT, 8.00% 2038		14,250		14,379		.52
Other securities				138,217		4.98
				224,689		8.10

Wisconsin 0.82%
Public Fin. Auth., Airport Facs. Rev. Ref. Bonds (Transportation Infrastructure Properties, LLC Obligated Group), Series 2012-B, AMT, 5.00% 2042		9,410		8,593		.31
Other securities				14,054		.51
				22,647		.82

Other states & U.S. territories 22.28%
Other securities				617,694		22.28

Total bonds, notes & other debt instruments (cost: $2,606,087,000)				2,597,406		93.67

38	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Short-term securities 5.10%	Principal amount (000)		Value (000)		Percent of net assets
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-A, 0.05% 2033³	$	1,000	$	1,000
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-C, 0.05% 2033³		6,015		6,015
Will County, Illinois, Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001, AMT, 0.05% 2026³		1,400		1,400		.45	%
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001-B, AMT, 0.05% 2025³		3,950		3,950
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030³		1,550		1,550
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.05% 2030³		4,400		4,400		.54
Mississippi Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-G, 0.05% 2035³		9,000		9,000
State of Texas, Tax and Rev. Anticipation Notes, Series 2012, 2.50% 8/30/2013		19,500		19,540		.70
Other securities				94,630		3.41

Total short-term securities (cost: $141,481,000)				141,485		5.10
Total investment securities (cost: $2,747,568,000)				2,738,891		98.77
Other assets less liabilities				34,186		1.23

Net assets			$	2,773,077		100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $101,212,000, which represented 3.65% of the net assets of the fund.

Scheduled interest and/or principal payment was not received.

Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Investment portfolio July 31, 2013

Bonds, notes & other debt instruments 91.05%	Principal amount (000)		Value (000)		Percent of net assets
New York 82.22%
State issuers — 42.92%
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 5.50% 2043	$	1,000	$	996		.81	%
Dormitory Auth. of the State of New York, North Shore-Long Island Jewish Obligated Group, Rev. Ref. Bonds, Series 2011-A, 5.00% 2032		1,500		1,519		1.23
Dormitory Auth., Consolidated Service Contract Rev. Ref. Bonds, Series 2010, 5.00% 2020		500		591
Dormitory Auth., School Districts Rev. Bond Fncg. Program Rev. Ref. Bonds, Series 2011-A, 5.00% 2024		1,000		1,096		1.37
Dormitory Auth., Fordham University Rev. Bonds, Series 2011-A, 5.50% 2036		1,000		1,060		.86
Dormitory Auth., Lease Rev. Bonds (State University Dormitory Facs. Issue), Series 2010-A, 5.00% 2035		1,000		1,031
Dormitory Auth., Lease Rev. Bonds (State University Dormitory Facs. Issue), Series 2011-A, 5.00% 2041		1,000		1,021		2.61
Dormitory Auth., Third General Resolution Rev. Ref. Bonds (State University Educational Facs. Issue), Series 2012-A, 5.00% 2020		1,000		1,171
Dormitory Auth., Miriam Osborn Memorial Home Association Rev. Ref. Bonds, Series 2012, 5.00% 2042		970		963		.78
Dormitory Auth., Mount Sinai School of Medicine of New York University, Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		1,000		1,120		.91
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021		500		570
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040		500		524		.88
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2011-A, 6.00% 2040		1,000		1,073		.87
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2008, 6.25% 2037		1,000		1,049		.85
Dormitory Auth., Rochester General Hospital Insured Rev. Bonds, Series 2005, RADIAN insured, 5.00% 2015 (escrowed to maturity)		720		794		.64
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041		1,420		1,505		1.22
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2011-A, 5.00% 2018		1,000		1,166		.94
Dormitory Auth. of the State of New York, School Districts Rev. Bond Fncg. Program Rev. Bonds, Series 2013-E, Assured Guaranty Municipal insured, 5.00% 2022		1,000		1,135		.92
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2013-A, 2.75% 2017		1,000		996		.81
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2007 Series A, 5.00% 2047		1,000		995
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.25% 2047		1,000		1,011		2.48
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.75% 2047		1,000		1,064
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031		1,500		1,539		1.25
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		1,500		1,635		1.32
Liberty Dev. Corp., Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035		1,000		1,040		.84
Metropolitan Transportation Auth., Dedicated Tax Fund Bonds, Series 2004-C, AMBAC insured, 5.50% 2017		1,000		1,175
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, 1.06% 2020¹		2,000		2,014		2.58
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2010-D, 5.00% 2017		1,000		1,146		.93

40	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount (000)		Value (000)		Percent of net assets
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043	$	650	$	682
Mortgage Agcy., Mortgage Rev. Bonds, Series 46, 5.00% 2029		410		441		2.42	%
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 45, 4.50% 2029		810		851
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 48, 2.625% 2041		1,000		1,021
Port Auth., Consolidated Bonds, Series 147, AMT, FGIC-National insured, 5.00% 2021		1,000		1,114
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031		1,000		1,059
Port Auth., Consolidated Rev. Ref. Bonds, Series 136, AMT, National insured, 5.00% 2021		500		521		3.88
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025		1,000		1,076
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034		1,000		1,022
Port Auth., Special Project Bonds (JFK International Air Terminal LLC Project), Series 8, 5.00% 2020		1,000		1,089		.88
Power Auth. of the State of New York, Rev. Ref. Bonds, Series 2011-A, 5.00% 2038		1,500		1,575		1.28
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2020		1,000		1,165		.94
Thruway Auth., Second General Highway and Bridge Trust Fund Bonds, Series 2010-A, 5.00% 2015		750		808
Thruway Auth., Second General Highway and Bridge Trust Fund Rev. Ref. Bonds, Series 2008-B, 5.00% 2015		500		538		2.03
Thruway Auth., Second General Highway and Bridge Trust Fund Rev. Ref. Bonds, Series 2012-A, 5.00% 2022		1,000		1,165
Tobacco Settlement Fin. Corp., Rev. Ref. Bonds (State Contingency Contract Secured), Series 2011-B, 5.00% 2018		1,000		1,145		.93
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2008-A, 5.00% 2020 (preref. 2018)		1,000		1,173		.95
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2010-A-1, 5.00% 2019		1,000		1,185
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), Rev. Ref. Bonds, Series 2013-A, 5.00% 2022		1,000		1,152		1.89
Troy Industrial Dev. Auth., Civic Fac. Rev. Bonds (Rensselaer Polytechnic Institute Project), Series 2011-E, 5.00% 2031		1,000		1,028		.83
Urban Dev. Corp., Service Contract Rev. Ref. Bonds, Series 2010-A-2, 5.00% 2020		1,000		1,160		.94
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1, 5.25% 2038		1,000		1,045		.85
				53,014		42.92

City & county issuers — 39.30%
City of Albany Capital Resource Corp., Rev. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2011, 6.25% 2038		1,000		1,089
City of Albany Industrial Dev. Agcy., Civic Fac. Rev. Ref. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2008-A, 5.25% 2027		500		524		1.31
Buffalo and Erie County Industrial Land Dev. Corp., Rev. Bonds (Buffalo State College Foundation Housing Corp. Project), Series 2011-A, 5.375% 2041		1,400		1,461		1.18
Build NYC Resource Corp., Parking Fac. Rev. Ref. Bonds (Royal Charter Properties, Inc. - New York and Presbyterian Hospital Leasehold Project), Series 2012, Assured Guaranty Municipal insured, 4.75% 2032		1,000		976		.79
County of Chautauqua Industrial Dev. Agcy., Exempt Fac. Rev. Bonds (NRG Dunkirk Power Project), Series 2009, 5.875% 2042		1,000		1,022		.83

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
City & county issuers (continued)
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2030	$	500	$	540
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2040		1,000		1,062		1.30	%
Erie County Industrial Dev. Agcy., School Fac. Rev. Bonds (City School Dist. of the City of Buffalo Project), Series 2011-A, 5.25% 2025		1,000		1,108
Erie County Industrial Dev. Agcy., School Fac. Rev. Ref. Bonds (City School Dist. of the City of Buffalo Project), Series 2012-A, 5.00% 2021		1,000		1,163		1.84
Essex County Industrial Dev. Agcy., Solid Waste Disposal Rev. Bonds, Series 2004-A, AMT, 5.20% 2028		500		500
Essex County Industrial Dev. Agcy., Solid Waste Disposal Rev. Ref. Bonds, Series 2005-A, AMT, 5.20% 2023		750		773		1.03
Various Purpose G.O. Bonds, Series 2007-B, 5.00% 2017		1,215		1,392		1.13
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2027		1,300		1,360
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2041		1,600		1,609		2.40
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038		1,000		1,004
Long Island Power Auth., Electric System General Rev. Ref. Bonds, Series 2003-B, 5.25% 2014		1,000		1,059
Long Island Power Auth., Electric System General Rev. Ref. Bonds, Series 2009-A, 5.50% 2024		1,055		1,191		3.08
Long Island Power Auth., Electric System General Rev. Ref. Bonds, Series 2009-A, 5.75% 2039		500		547
County of Monroe Industrial Dev. Agcy., School Fac. Rev. Bonds (Rochester Schools Modernization Project), Series 2012-A, 5.00% 2021		1,000		1,146		.93
Monroe County Industrial Dev. Corp., Rev. Bonds (Rochester General Hospital Project), Series 2013-A, 5.00% 2037		900		882		.71
Monroe County, Industrial Dev. Corp. Rev. Ref. Bonds (University of Rochester Project), Series 2011-A, 5.00% 2041		1,000		1,019		.82
Nassau County Local Econ. Assistance Corp., Rev. Ref. Bonds (Winthrop-University Hospital Association Project), Series 2012, 5.00% 2037		1,000		973		.79
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.61% 2025¹		1,500		1,520
City of New York, G.O. Bonds, Fiscal 2008 Series L-1, 5.00% 2023		1,000		1,103
City of New York, G.O. Bonds, Fiscal 2010 Series E, 5.00% 2025		1,000		1,110		4.85
City of New York, G.O. Bonds, Fiscal 2011 Series A-1, 5.00% 2019		1,000		1,173
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2019		925		1,085
New York City Industrial Dev. Agcy., Airport Facs. Rev. Ref. Bonds (Transportation Infrastructure Properties, LLC Obligated Group), Series 2012-A, AMT, 5.00% 2028		1,000		977		.79
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.625% 2025		1,500		1,648		1.33
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Ref. Bonds, Fiscal 2011 Series EE, 5.375% 2043		1,000		1,060		.86
New York City Transitional Fin. Auth., Building Aid Rev. Bonds, Fiscal 2007 Series S-2, Assured Guaranty Municipal insured, 5.00% 2017		570		643		.52
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series C, 5.25% 2025		1,000		1,155
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010 Series D, 5.00% 2023		1,000		1,137		1.86

42	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount (000)		Value (000)		Percent of net assets

New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2019	$	500	$	570
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		540		599		1.37	%
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2025		500		529
Trust for Cultural Resources of the City of New York, Rev. Bonds (Juilliard School), Series 2009-B, 1.35% 2036 (put 2017)		1,500		1,491		1.21
Niagara Area Dev. Corp. (New York), Solid Waste Disposal Fac. Rev. Ref. Bonds (Covanta Energy Project), Series 2012-A, AMT, 5.25% 2042		1,500		1,323		1.07
Onondaga Civic Dev. Corp., Rev. Ref. Bonds (St. Joseph’s Hospital Health Center Project), Series 2012, 5.00% 2042		500		451		.37
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Catholic Health Services of Long Island Obligated Group Project), Series 2011, 5.00% 2028		1,000		1,042		.84
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030		1,000		1,050		.85
Suffolk County Industrial Dev. Agcy., Industrial Dev. Rev. Bonds (KeySpan-Port Jefferson Energy Center, LLC Project), Series 2003-A, AMT, 5.25% 2027		1,000		1,008		.82
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2012-B, 5.00% 2032		750		717		.58
Tompkins County Dev. Corp., Rev. Bonds (Tompkins Cortland Community College Foundation, Inc. Project), Series 2013-A, 5.00% 2038		1,000		922		.75
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.125% 2042		1,500		1,090		.88
Westchester County Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030		1,000		1,095
Westchester County Health Care Corp., Rev. Bonds, Series 2011-A, 5.125% 2041		500		504		1.29
City of Yonkers, G.O. Bonds, Series 2011-A, 5.00% 2019		1,000		1,131		.92
				48,533		39.30

Guam 2.82%
Government of Guam, Business Privilege Tax Bonds, Series 2011-A, 5.00% 2031		1,200		1,227
Government of Guam, Business Privilege Tax Bonds, Series 2012-B-1, 5.00% 2037		750		750		1.60
Government of Guam, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2011-A, 6.125% 2031		500		532		.43
Power Auth., Rev. Ref. Bonds, Series 2012-A, 5.00% 2034		1,000		971		.79
				3,480		2.82

Puerto Rico 4.37%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042		1,000		782
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.75% 2037		1,500		1,296		1.68
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (Inter American University of Puerto Rico Project), Series 2012, 5.00% 2031		500		451		.36
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (University of the Sacred Heart Project), Series 2012, 5.00% 2042		500		403		.33
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		1,000		1,038		.84

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Puerto Rico (continued)
Sales Tax Fncg. Corp., Sales Tax Rev. Bonds, Series 2009-A, 6.00% 2042	$	500	$	501
Sales Tax Fncg. Corp., Sales Tax Rev. Ref. Bonds, Series 2011-C, 5.00% 2040		1,000		927		1.16	%
				5,398		4.37
Virgin Islands 1.64%
Public Fin. Auth., Rev. Bonds (Matching Fund Loan Note - Diageo Project), Series 2009-A, 6.625% 2029		500		552		.45
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Notes), Series 2012-A, 5.00% 2032		1,500		1,471		1.19
				2,023		1.64

Total bonds, notes & other debt instruments (cost: $111,288,000)				112,448		91.05

Short-term securities 7.82%
Trust for Cultural Resources of the City of New York, Rev. Ref. Bonds (Lincoln Center for the Performing Arts, Inc.), Series 2008-A-1, JPMorgan Chase LOC, 0.06% 2035¹		2,100		2,100		1.70
City of New York, G.O. Bonds, Fiscal 1993 Series A-7, JPMorgan Chase LOC, 0.05% 2020¹		900		900
City of New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.04% 2038¹		1,000		1,000		1.54
New York City, Transitional Fin. Auth., New York City Recovery Bonds, Fiscal Series 2003-1, Subseries 1-C, 0.05% 2022¹		2,400		2,400		1.94
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2003-B-3, U.S. Bank LOC, 0.04% 2033¹		2,800		2,800		2.27
Dormitory Auth., University of Rochester Rev. Bonds, Series 2003-A, JPMorgan Chase LOC, 0.05% 2031¹		450		450		.37

Total short-term securities (cost: $9,650,000)				9,650		7.82
Total investment securities (cost: $120,938,000)				122,098		98.87
Other assets less liabilities				1,400		1.13

Net assets			$	123,498		100.00	%

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

44	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Summary investment portfolio July 31, 2013

Bonds, notes & other debt instruments 95.94%	Principal amount (000)		Value (000)		Percent of net assets
California 92.74%
State issuers — 36.47%
Educational Facs. Auth., Rev. Bonds (Mills College), Series 2005-A, 5.00% 2025	$	4,975	$	5,016		.33	%
Educational Facs. Auth., Rev. Ref. Bonds (California Lutheran University), Series 2008, 5.75% 2038		6,000		6,050		.40
Educational Facs. Auth., Rev. Ref. Bonds (Chapman University), Series 2011, 5.00% 2031		5,615		5,788		.38
Various Purpose G.O. Bonds, 5.00% 2038		3,000		3,068
Various Purpose G.O. Bonds, 5.25% 2028		2,000		2,171
Various Purpose G.O. Bonds, 5.25% 2028		5,000		5,432
Various Purpose G.O. Bonds, 6.00% 2038		7,000		7,842		1.91
Various Purpose G.O. Bonds, 6.00% 2039		2,000		2,263
Various Purpose G.O. Bonds, 6.50% 2033		5,000		5,860
Various Purpose G.O. Ref. Bonds, 5.25% 2030		2,000		2,140
Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-A-1, 5.75% 2047		10,725		8,375		.56
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2008-G, 5.50% 2025		3,500		3,801
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2009-A, 6.00% 2029		1,500		1,700
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2011-A, 5.25% 2041		2,000		2,022		1.00
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-B, 5.50% 2030		980		1,064
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-D, 5.50% 2031		6,090		6,462
Health Facs. Fncg. Auth., Rev. Bonds (Rady Children’s Hospital - San Diego), Series 2011, 5.25% 2041		5,000		5,074		.34
Statewide Communities Dev. Auth., Rev. Bonds (Sutter Health), Series 2011-A, 6.00% 2042		4,500		5,060		.34
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Cedars-Sinai Medical Center), Series 2005, 5.00% 2027		14,750		14,929		.99
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-D, 5.00% 2034 (put 2016)		5,000		5,541		.37
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Hospital and Clinics), Series 2010-B, 5.25% 2031		8,000		8,288		.55
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.00% 2033		15,000		15,425
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2024		2,000		2,218		1.32
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2025		2,000		2,202
Municipal Fin. Auth., Certs. of Part. (Community Hospitals of Central California Obligated Group), 5.25% 2037		5,500		5,489		.36
Municipal Fin. Auth., Rev. Ref. Bonds (Azusa Pacific University Project), Series 2011-B, 8.00% 2041¹		8,550		9,532		.63

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)		Principal amount (000)		Value (000)	Percent of net assets
State issuers (continued)
Northern California Power Agcy., Geothermal Project Number 3 Rev. Bonds, Series 2009-A, 5.00% 2019	$	2,000	$	2,342
Northern California Power Agcy., Geothermal Project Number 3 Rev. Bonds, Series 2009-A, 5.50% 2022		1,000		1,142
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2010-A, 5.00% 2023		3,680		4,019
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2029		1,570		1,653	1.26	%
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2030		1,000		1,051
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2020		2,010		2,326
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2025		6,000		6,449
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 2004-C, AMT, AMBAC-FGIC insured, 4.75% 2023		5,000		5,210
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 2004-D, AMT, FGIC insured, 4.75% 2023		1,000		1,042	.42
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 2045		8,000		6,705	.45
Southern California Public Power Auth., Transmission Project Rev. Bonds (Southern Transmission Project), Series 2008-B, 6.00% 2027		3,200		3,738
Southern California Public Power Auth., Transmission Project Rev. Ref. Bonds (Southern Transmission Project), Series 2008-A, 5.00% 2022		4,960		5,726	1.00
Southern California Public Power Auth., Transmission Project Rev. Ref. Bonds (Southern Transmission Project), Series 2009-A, 5.00% 2023		5,000		5,614
Statewide Communities Dev. Auth., Rev. Bonds (Front Porch Communities and Services Project), Series 2007-A, 5.125% 2037¹		9,500		8,800	.58
Statewide Communities Dev. Auth., Rev. Bonds (Inland Regional Center Project), Series 2007, 5.375% 2037		6,500		6,567	.44
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2012-A, 5.00% 2042		9,500		9,435	.63
Statewide Communities Dev. Auth., Rev. Ref. Bonds (American Baptist Homes of the West), Series 2010, 6.25% 2039		5,300		5,478	.36
Statewide Communities Dev. Auth., Senior Living Rev. Ref. Bonds (Southern California Presbyterian Homes), Series 2006-A, 4.875% 2036		6,500		5,636	.37
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2008, 5.50% 2026		3,500		3,641
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2008, 6.00% 2040		4,750		4,876
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase I), Series 2011, 5.375% 2038		1,260		1,277
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2017		2,565		2,765	1.23
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2020		1,000		1,051
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2026		2,980		3,013
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2038		2,000		1,907

46	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

		Principal amount (000)		Value (000)	Percent of net assets
Regents of the University of California, Limited Project Rev. Bonds, Series 2007-D, FGIC-National insured, 5.00% 2037	$	5,000	$	5,033
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 0.924% 2043²		8,000		6,032	.74	%
Other securities				293,571	19.51
				548,911	36.47

City & county issuers — 56.27%
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2026		6,375		6,918	.46
Antelope Valley Healthcare Dist., Rev. Bonds, Series 2002-A, 5.25% 2017		6,000		5,994	.40
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Insured Rev. Ref. Bonds (Casa de las Campanas, Inc.), Series 2010, 6.00% 2037		6,000		6,437	.43
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.125% 2047		6,000		6,144	.41
County of Contra Costa Public Fncg. Auth., Lease Rev. Ref. Bonds (Medical Center Ref.), Series 2007-B, National insured, 5.00% 2017		5,000		5,603	.37
City of La Verne, Rev. Certs. of Part. (Brethren Hillcrest Homes), Series 2003-B, 6.625% 2025		5,220		5,274	.35
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Series 2006-A, AMT, National insured, 5.00% 2020		6,000		6,759	.45
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Ref. Bonds, Series 2008-A, AMT, 5.50% 2022		5,000		5,700	.38
Roseville Natural Gas Fncg. Auth., Gas Rev. Bonds, Series 2007, 5.00% 2022		4,920		5,299	.35
Sacramento Cogeneration Auth., Cogeneration Project Rev. Ref. Bonds (Procter & Gamble Project), Series 2009, 5.25% 2020		995		1,175
Sacramento Cogeneration Auth., Cogeneration Project Rev. Ref. Bonds (Procter & Gamble Project), Series 2009, 5.25% 2021		900		1,059
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.25% 2024		2,000		2,317
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.70% 2017		2,500		2,919	1.04
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.80% 2019		3,000		3,642
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 2013-A, 5.00% 2041		4,500		4,575
Sacramento County Sanitation Districts Fncg. Auth., Rev. Ref. Bonds (Sacramento Regional County Sanitation Dist.), Series 2007-B, FGIC-National insured, 0.714% 2035²		13,500		11,731	.78
Sacramento Municipal Utility Dist. Fncg. Auth., Cosumnes Project Rev. Bonds, Series 2006, National insured, 5.125% 2029		10,000		10,199	.68
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		10,825		12,175	.81
Public Facs. Fncg. Auth. of the City of San Diego, Water Rev. Ref. Bonds, Series 2012-A, 5.00% 2028		5,000		5,406	.36

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)		Principal amount (000)		Value (000)	Percent of net assets
City & county issuers (continued)
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Bonds, Series 2009-E, 6.00% 2039	$	3,000	$	3,418
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Issue 34-E, AMT, 5.75% 2019		3,500		4,065
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2009-A, 4.90% 2029		5,000		5,178
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2010-F, 5.00% 2040		5,000		5,083	1.49	%
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2011-F, AMT, 5.00% 2028		2,630		2,694
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2028		1,000		1,027
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2030		1,000		1,015
San Francisco Municipal Transportation Agcy., Rev. Bonds, Series 2012-B, 5.00% 2042		5,000		5,048	.34
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.50% 2030		8,000		8,399
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-2, 5.25% 2034		4,900		5,039	.89
Santa Clara County Fncg. Auth., Lease Rev. Ref. Bonds (Valley Medical Center), Series 2008-A, 5.00% 2022		4,500		5,074	.34
City of Torrance, Rev. Bonds (Torrance Memorial Medical Center), Series 2010-A, 5.00% 2040		5,185		5,220	.35
Other securities				686,140	45.59
				846,726	56.27

Puerto Rico 1.37%
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		7,150		7,418	.49
Other securities				13,170	.88
				20,588	1.37

Other U.S. territories 1.83%
Other securities				27,590	1.83

Total bonds, notes & other debt instruments (cost: $1,423,439,000)				1,443,815	95.94

48	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Short-term securities 3.17%		Principal amount (000)		Value (000)	Percent of net assets
Various Purpose G.O. Bonds, JPMorgan Chase LOC, 0.03% 2033²	$	700	$	700	.05	%
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-E, JPMorgan Chase LOC, 0.04% 2026²		3,900		3,900
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-F, JPMorgan Chase LOC, 0.04% 2026²		4,200		4,200	2.47
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1997-B, AMT, JPMorgan Chase LOC, 0.07% 2026²		29,100		29,100
Other securities				9,804	.65

Total short-term securities (cost: $47,704,000)				47,704	3.17
Total investment securities (cost: $1,471,143,000)				1,491,519	99.11
Other assets less liabilities				13,342	.89

Net assets			$	1,504,861	100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $21,438,000, which represented 1.42% of the net assets of the fund.
²	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial statements

Statements of assets and liabilities

at July 31, 2013

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America
Assets:
Investment securities, at value	$	774,718		$	3,066,415
Cash		149			30
Receivables for:
Sales of investments		—			—
Sales of fund’s shares		2,030			3,653
Interest		5,214			28,918
		782,111			3,099,016
Liabilities:
Payables for:
Purchases of investments		12,457			11,164
Repurchases of fund’s shares		1,156			6,199
Dividends on fund’s shares		95			693
Investment advisory services		236			640
Services provided by related parties		109			721
Trustees’ deferred compensation		29			115
Other		20			19
		14,102			19,551
Net assets at July 31, 2013	$	768,009		$	3,079,465

Investment securities, at cost	$	767,343		$	2,942,188

Net assets consist of:
Capital paid in on shares of beneficial interest	$	761,052		$	2,955,730
(Distributions in excess of) undistributed net investment income		(77	)		249
Accumulated net realized loss		(341	)		(741	)
Net unrealized appreciation (depreciation)		7,375			124,227
Net assets at July 31, 2013	$	768,009		$	3,079,465

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized


Class A	Net assets	$	701,027	$	2,624,668
	Shares outstanding		68,653		164,624
	Net asset value per share	$	10.21	$	15.94
Class B	Net assets			$	3,130
	Shares outstanding				196
	Net asset value per share			$	15.94
Class C	Net assets			$	49,355
	Shares outstanding				3,096
	Net asset value per share			$	15.94
Class F-1	Net assets	$	29,689	$	122,450
	Shares outstanding		2,907		7,680
	Net asset value per share	$	10.21	$	15.94
Class F-2	Net assets	$	37,293	$	148,202
	Shares outstanding		3,652		9,296
	Net asset value per share	$	10.21	$	15.94
Class R-6	Net assets			$	131,660
	Shares outstanding				8,258
	Net asset value per share			$	15.94

*	Amount less than one thousand.

See Notes to Financial Statements

50	American Funds Tax-Exempt Funds

(dollars and shares in thousands, except per-share amounts)

The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			American Funds Tax-Exempt Fund of New York			The Tax-Exempt Fund of California

$	9,449,081		$	2,738,891		$	122,098		$	1,491,519
	33			218			46			44

	11,274			23,420			493			2,092
	13,227			2,490			205			1,211
	98,676			32,394			1,216			19,829
	9,572,291			2,797,413			124,058			1,514,695


	58,221			11,557			—			2,693
	25,795			9,800			364			5,242
	2,632			917			116			827
	1,970			789			39			424
	3,363			1,159			38			532
	228			93			—	*		115
	4			21			3			1
	92,213			24,336			560			9,834
$	9,480,078		$	2,773,077		$	123,498		$	1,504,861

$	9,239,791		$	2,747,568		$	120,938		$	1,471,143


$	9,317,631		$	2,903,518		$	122,403		$	1,523,418
	4,757			1,564			25			728
	(51,601	)		(123,328	)		(90	)		(39,661	)
	209,291			(8,677	)		1,160			20,376
$	9,480,078		$	2,773,077		$	123,498		$	1,504,861





$	6,983,888		$	2,246,201		$	99,811		$	1,249,826
	561,196			155,119			9,779			74,770
$	12.44		$	14.48		$	10.21		$	16.72
$	19,661		$	9,580		$	174		$	3,319
	1,580			662			17			199
$	12.44		$	14.48		$	10.21		$	16.72
$	375,469		$	160,749		$	7,763		$	86,531
	30,171			11,101			760			5,177
$	12.44		$	14.48		$	10.21		$	16.72
$	1,659,302		$	172,151		$	1,372		$	73,937
	133,335			11,888			134			4,423
$	12.44		$	14.48		$	10.21		$	16.72
$	327,237		$	126,330		$	14,378		$	91,248
	26,295			8,724			1,409			5,459
$	12.44		$	14.48		$	10.21		$	16.72
$	114,521		$	58,066
	9,202			4,010
$	12.44		$	14.48

American Funds Tax-Exempt Funds

Statements of operations

	American Funds Short-Term Tax-Exempt Bond Fund Year ended July 31, 2013			Limited Term Tax-Exempt Bond Fund of America Year ended July 31, 2013
Investment income:
Income:
Interest	$	12,744		$	96,167

Fees and expenses²:
Investment advisory services		2,614			7,710
Distribution services		1,031			9,072
Transfer agent services		252			1,124
Administrative services		93			500
Reports to shareholders		29			66
Registration statement and prospectus		86			187
Trustees’ compensation		7			35
Auditing and legal		51			64
Custodian		2			7
Federal and state income taxes		13			2
Other state and local taxes		3			14
Other		34			52
Total fees and expenses before reimbursement		4,215			18,833
Less reimbursement of fees and expenses		—			—
Total fees and expenses after reimbursement		4,215			18,833
Net investment income		8,529			77,334

Net realized (loss) gain and unrealized (depreciation) appreciation on investments
Net realized (loss) gain on investments		(257	)		(316	)
Net unrealized (depreciation) appreciation on investments		(7,365	)		(84,021	)
Net realized (loss) gain and unrealized (depreciation) appreciation on investments		(7,622	)		(84,337	)
Net increase (decrease) in net assets resulting from operations	$	907		$	(7,003	)

¹	In 2013, the fund changed its fiscal year-end from August to July.
²	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
³	Amount less than one thousand.

See Notes to Financial Statements

52	American Funds Tax-Exempt Funds

(dollars in thousands)

The Tax-Exempt Bond Fund of America						American High-Income Municipal Bond Fund			American Funds Tax-Exempt Fund of New York			The Tax-Exempt Fund of California
11 months ended July 31, 2013¹			Year ended August 31, 2012			Year ended July 31, 2013			Year ended July 31, 2013			11 months ended July 31, 2013¹			Year ended August 31, 2012


$	359,639		$	385,032		$	143,958		$	4,607		$	63,152		$	68,246


	22,050			22,562			9,503			471			4,749			4,978
	25,201			25,145			8,934			227			4,193			4,394
	4,512			3,740			1,745			58			513			415
	1,812			1,430			507			23			245			201
	285			266			155			20			42			37
	253			221			179			89			87			91
	85			78			28			1			24			16
	102			99			69			52			96			94
	21			21			7			—	³		3			4
	1,148			140			686			—			15			22
	23			47			8			—			5			11
	63			73			44			18			29			36
	55,555			53,822			21,865			959			10,001			10,299
	—			—			—			100			—			—
	55,555			53,822			21,865			859			10,001			10,299
	304,084			331,210			122,093			3,748			53,151			57,947


	53,350			(1,791	)		36,678			173			6,856			2,731
	(559,829	)		583,007			(172,207	)		(8,186	)		(83,071	)		105,471
	(506,479	)		581,216			(135,529	)		(8,013	)		(76,215	)		108,202
$	(202,395	)	$	912,426		$	(13,436	)	$	(4,265	)	$	(23,064	)	$	166,149

American Funds Tax-Exempt Funds

Statements of changes in net assets

	American Funds Short-Term Tax-Exempt						Limited Term Tax-Exempt Bond						The Tax-Exempt Bond Fund of America
	Bond Fund Year ended July 31						Fund of America Year ended July 31						11 months ended July 31			Year ended August 31
	2013			2012			2013			2012			2013*			2012			2011
Operations:
Net investment income	$	8,529		$	7,584		$	77,334		$	74,255		$	304,084		$	331,210		$	349,755
Net realized (loss) gain on investments		(257	)		76			(316	)		540			53,350			(1,791	)		(15,557	)
Net unrealized (depreciation) appreciation on investments		(7,365	)		5,056			(84,021	)		86,401			(559,829	)		583,007			(240,849	)
Net increase (decrease) in net assets resulting from operations		907			12,716			(7,003	)		161,196			(202,395	)		912,426			93,349

Dividends and distributions paid or accrued to shareholders:
Dividends from net investment income		(8,537	)		(7,584	)		(77,251	)		(74,114	)		(303,706	)		(330,173	)		(349,603	)
Distributions from net realized gain on investments		(134	)		—			(579	)		—			—			—			—
Total dividends and distributions paid or accrued to shareholders		(8,671	)		(7,584	)		(77,830	)		(74,114	)		(303,706	)		(330,173	)		(349,603	)

Net capital share transactions		137,112			82,089			197,263			333,030			283,770			600,697			(1,112,834	)
Total increase (decrease) in net assets		129,348			87,221			112,430			420,112			(222,331	)		1,182,950			(1,369,088	)

Net assets:
Beginning of period		638,661			551,440			2,967,035			2,546,923			9,702,409			8,519,459			9,888,547
End of period	$	768,009		$	638,661		$	3,079,465		$	2,967,035		$	9,480,078		$	9,702,409		$	8,519,459
(Distribution in excess of) undistributed net investment income	$	(77	)	$	(27	)	$	249		$	233		$	4,757		$	5,428		$	6,161

*	In 2013, the fund changed its fiscal year-end from August to July.

See Notes to Financial Statements

54	American Funds Tax-Exempt Funds

(dollars in thousands)

American High-Income						American Funds Tax-Exempt Fund						The Tax-Exempt Fund of California
Municipal Bond Fund Year ended July 31						of New York Year ended July 31						11 months ended July 31			Year ended August 31
2013			2012			2013			2012			2013*			2012			2011

$	122,093		$	110,511		$	3,748		$	3,032		$	53,151		$	57,947		$	60,152
	36,678			(24,384	)		173			231			6,856			2,731			1,877
	(172,207	)		252,459			(8,186	)		7,943			(83,071	)		105,471			(43,620	)
	(13,436	)		338,586			(4,265	)		11,206			(23,064	)		166,149			18,409


	(121,785	)		(110,000	)		(3,737	)		(3,027	)		(52,987	)		(57,712	)		(60,274	)
	—			—			—			—			—			—			—
	(121,785	)		(110,000	)		(3,737	)		(3,027	)		(52,987	)		(57,712	)		(60,274	)

	145,477			323,576			2,834			52,001			(15,232	)		48,701			(241,944	)
	10,256			552,162			(5,168	)		60,180			(91,283	)		157,138			(283,809	)


	2,762,821			2,210,659			128,666			68,486			1,596,144			1,439,006			1,722,815
$	2,773,077		$	2,762,821		$	123,498		$	128,666		$	1,504,861		$	1,596,144		$	1,439,006
$	1,564		$	2,822		$	25		$	11		$	728		$	729		$	457

American Funds Tax-Exempt Funds

Notes to financial statements

1. Organization

On December 5, 2012, the boards of trustees for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California approved to change the funds’ fiscal year-ends from August 31 to July 31.

The funds’ investment objectives and the principal strategies the funds use to achieve these objectives are as follows:

American Funds Short-Term Tax-Exempt Bond Fund — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America — Seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital.

American High-Income Municipal Bond Fund — Seeks to provide a high level of current income exempt from regular federal income tax.

American Funds Tax-Exempt Fund of New York — Seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes, with a secondary objective of preservation of capital.

The Tax-Exempt Fund of California — Seeks a high level of current income exempt from regular federal and California state income taxes, with a secondary objective of preservation of capital.

American Funds Short-Term Tax-Exempt Bond Fund has three share classes (Class A, as well as two F share classes, F-1 and F-2). American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California each have five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2). Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund each have six share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2) and one share class that is only available to the American Funds Portfolio Series (Class R-6). Some share classes are only available to limited categories of investors. The funds’ share classes are further described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Class A	Up to 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; up to 3.75% for all other funds	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Class B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Class B converts to Class A after eight years
Class C^†	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Classes F-1 and F-2	None	None	None
Class R-6	None	None	None

*	Class B shares are not available for purchase in Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California.
^†	Class C shares are not available for purchase in Limited Term Tax-Exempt Bond Fund of America.

56	American Funds Tax-Exempt Funds

Holders of all share classes of each fund have equal pro rata rights to the assets, dividends and liquidation proceeds of each fund held. Each share class of each fund 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 share class of each fund.

2. Significant accounting policies

Each fund’s 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 funds follow 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 funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities in each fund. In the event a security is purchased with a delayed payment date, each impacted fund will segregate liquid assets sufficient to meet its payment obligations. 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 of each fund based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes of each fund 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 of each fund.

Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of each fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on each fund’s ex-dividend date.

3. Valuation

Capital Research and Management Company (“CRMC”), the funds’ investment adviser, values each fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs — The funds’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s 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 from one or more pricing vendors. Vendors value such securities based on one or more of the following inputs: benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data. For certain distressed securities, valuations may include cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts.

When the funds’ 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 ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

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.

American Funds Tax-Exempt Funds

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the funds’ investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of each fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as 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 that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — Each fund’s board of trustees has delegated authority to the funds’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the boards of trustees with supplemental information to support the changes. Each fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The funds’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The funds’ investment adviser classifies each fund’s 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 investment adviser’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 reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. At July 31, 2013, all of the investment securities held by each fund were classified as Level 2.

4. Risk factors

Investing in each fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the securities held by the funds may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the funds.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in a fund having to reinvest the proceeds in lower yielding securities.

Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Credit risk is broadly gauged by the credit ratings of the securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate the risks of an issuer defaulting on its obligations.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

58	American Funds Tax-Exempt Funds

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 funds could cause the values of these securities to decline.

Investing in lower rated bonds — Each of the funds (other than American Funds Short-Term Tax-Exempt Bond Fund) may invest in lower rated bonds and other lower rated debt instruments. Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in similar municipal bonds — Investing significantly in municipal obligations of issuers in the same state or backed by revenues of similar types of projects or industries may make the funds more susceptible to certain economic, political or regulatory occurrences. As a result, the potential for fluctuations in the funds’ share prices may increase.

Investing in municipal bonds of issuers within the state of New York — Because American Funds Tax-Exempt Fund of New York invests primarily in securities of issuers within the state of New York, the fund is more susceptible to factors adversely affecting issuers of New York securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, such factors may include political policy changes, tax base erosion, state constitutional limits on tax increases, budget deficits and other financial or economic difficulties, and changes in the credit ratings assigned to New York’s municipal issuers. New York’s economy and finances may be especially vulnerable to changes in the performance of the financial services sector, which historically has been volatile. More detailed information about the risks of investing in New York municipal securities is contained in the fund’s statement of additional information.

Investing in municipal bonds of issuers within the state of California — Because The Tax-Exempt Fund of California invests primarily in securities of issuers within the state of California, the fund is more susceptible to factors adversely affecting issuers of California securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, in the past, California voters have passed amendments to the state’s constitution and other measures that limit the taxing and spending authority of California governmental entities, and future voter initiatives may adversely affect California municipal bonds. More detailed information about the risks of investing in California municipal securities is contained in the fund’s statement of additional information.

Management — The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses employed by the funds’ investment adviser in this process may not produce the desired results. This could cause the funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.

5. Taxation and distributions

Federal income taxation — Each 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 income and net capital gains each year. The funds are not subject to income taxes to the extent taxable income and net capital gains are distributed. Generally, income earned by each fund is exempt from federal income taxes; however, each fund may earn taxable income from certain investments.

As of and during the period ended July 31, 2013, none of the funds had a liability for any unrecognized tax benefits. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statement of operations. During the period, none of the funds incurred any significant interest or penalties.

The funds are not subject to examination by U.S. federal tax authorities or state tax authorities for tax years before the dates shown in the following table:

Fund	U.S. federal tax authority		State tax authority
American Funds Short-Term Tax-Exempt Bond Fund	2009		2008
Limited Term Tax-Exempt Bond Fund of America	2009		2008
The Tax-Exempt Bond Fund of America	2009		2008
American High-Income Municipal Bond Fund	2009		2008
American Funds Tax-Exempt Fund of New York	2010	*	2010	*
The Tax-Exempt Fund of California	2009		2008

*	The year the fund commenced operations.

American Funds Tax-Exempt Funds

Distributions — Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; net capital losses; amortization of discounts; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes. Each fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

As indicated in the following tables, some of the funds had capital loss carryforwards available at July 31, 2013. These will be used to offset any capital gains realized by these funds in future years through the expiration dates. Funds with a capital loss carryforward will not make distributions from capital gains while a capital loss carryforward remains.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after July 31, 2011, (August 31, 2011, for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California) may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

Additional tax basis disclosures for each fund are as follows (dollars in thousands):

	American Funds Short-Term Tax- Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America			The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			American Funds Tax-Exempt Fund of New York			The Tax-Exempt Fund of California
As of July 31, 2013:
Undistributed tax-exempt income	$	47		$	691		$	2,649		$	927		$	115		$	827
Post-October capital loss deferral*		(341	)		(741	)		(2,488	)		—			(16	)		—
Capital loss carryforward:
No expiration		—			—			—			(12,683	)		—			—
Expiring 2017		—			—			—			(14,384	)		—			(9,316	)
Expiring 2018		—			—			(48,217	)		(69,969	)		—			(30,345	)
Expiring 2019		—			—			—			(24,408	)		—			—
	$	—		$	—		$	(48,217	)	$	(121,444	)	$	—		$	(39,661	)
Capital loss carryforwards utilized	$	—		$	—		$	56,607		$	36,293		$	258		$	6,829
Capital loss carryforwards expired	$	—		$	—		$	—		$	3,652		$	—		$	—
Reclassification (from) to distributions in excess of/undistributed net investment income (to) from accumulated net realized loss/undistributed net realized gain	$	(50	)	$	(75	)	$	(583	)	$	(263	)	$	4		$	(22	)
Reclassification to (from) distributions in excess of/undistributed net investment income from (to) capital paid in on shares of beneficial interest		8			8			(466	)		(1,303	)		(1	)		(143	)
Reclassification (from) to accumulated net realized loss (to) from capital paid in on shares of beneficial interest		—			79			—			3,652			(1	)		—
Gross unrealized appreciation on investment securities	$	9,358		$	141,629		$	392,730		$	113,423		$	3,276		$	58,814
Gross unrealized depreciation on investment securities		(1,982	)		(17,037	)		(177,994	)		(119,031	)		(2,164	)		(37,595	)
Net unrealized appreciation (depreciation) on investment securities	$	7,376		$	124,592		$	214,736		$	(5,608	)	$	1,112		$	21,219
Cost of investment securities	$	767,342		$	2,941,823		$	9,234,345		$	2,744,499		$	120,986		$	1,470,300

^*	This deferral is considered incurred in the subsequent year.

60	American Funds Tax-Exempt Funds

The tax character of distributions paid or accrued to shareholders of each fund was as follows (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

	Year ended July 31, 2013						Year ended July 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	7,907	$	123	$	8,030	$	7,182	$	—	$	7,182
Class F-1		208		4		212		172		—		172
Class F-2		422		7		429		230		—		230
Total	$	8,537	$	134	$	8,671	$	7,584	$	—	$	7,584

Limited Term Tax-Exempt Bond Fund of America

	Year ended July 31, 2013						Year ended July 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	65,825	$	492	$	66,317	$	64,748	$	—	$	64,748
Class B		79		1		80		154		—		154
Class C		1,081		12		1,093		1,446		—		1,446
Class F-1		3,150		25		3,175		3,160		—		3,160
Class F-2		4,116		31		4,147		4,454		—		4,454
Class R-6*		3,000		18		3,018		152		—		152
Total	$	77,251	$	579	$	77,830	$	74,114	$	—	$	74,114

The Tax-Exempt Bond Fund of America

	Period ended July 31, 2013^†						Year ended August 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	232,946	$	—	$	232,946	$	258,693	$	—	$	258,693
Class B		609		—		609		1,043		—		1,043
Class C		9,871		—		9,871		11,462		—		11,462
Class F-1		47,608		—		47,608		50,382		—		50,382
Class F-2		9,865		—		9,865		8,330		—		8,330
Class R-6*		2,807		—		2,807		263		—		263
Total	$	303,706	$	—	$	303,706	$	330,173	$	—	$	330,173

	Year ended August 31, 2011
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	273,244	$	—	$	273,244
Class B		1,809		—		1,809
Class C		13,051		—		13,051
Class F-1		53,370		—		53,370
Class F-2		8,129		—		8,129
Total	$	349,603	$	—	$	349,603

See end of distributions tables for footnotes.

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Year ended July 31, 2013						Year ended July 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	100,902	$	—	$	100,902	$	92,406	$	—	$	92,406
Class B		450		—		450		724		—		724
Class C		6,057		—		6,057		5,748		—		5,748
Class F-1		7,852		—		7,852		7,482		—		7,482
Class F-2		5,011		—		5,011		3,554		—		3,554
Class R-6*		1,513		—		1,513		86		—		86
Total	$	121,785	$	—	$	121,785	$	110,000	$	—	$	110,000

American Funds Tax-Exempt Fund of New York

	Year ended July 31, 2013						Year ended July 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	3,102	$	—	$	3,102	$	2,614	$	—	$	2,614
Class B		6		—		6		5		—		5
Class C		160		—		160		98		—		98
Class F-1		54		—		54		47		—		47
Class F-2		415		—		415		263		—		263
Total	$	3,737	$	—	$	3,737	$	3,027	$	—	$	3,027

The Tax-Exempt Fund of California

	Period ended July 31, 2013^†						Year ended August 31, 2012
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued		Distributions from tax-exempt income		Distributions from long-term capital gains		Total distributions paid or accrued
Class A	$	44,754	$	—	$	44,754	$	49,306	$	—	$	49,306
Class B		113		—		113		185		—		185
Class C		2,534		—		2,534		2,959		—		2,959
Class F-1		2,537		—		2,537		2,963		—		2,963
Class F-2		3,049		—		3,049		2,299		—		2,299
Total	$	52,987	$	—	$	52,987	$	57,712	$	—	$	57,712

	Year ended August 31, 2011
Share class	Distributions from tax-exempt income		Distributions from long-term capital gains		Total Distributions paid or accrued
Class A	$	51,544	$	—	$	51,544
Class B		294		—		294
Class C		3,233		—		3,233
Class F-1		3,509		—		3,509
Class F-2		1,694		—		1,694
Total	$	60,274	$	—	$	60,274

*	Class R-6 shares were offered beginning May 11, 2012.
^†	In 2013, the fund changed its fiscal year-end from August to July.

6. Fees and transactions with related parties

CRMC, the funds’ investment adviser, is the parent company of American Funds Distributors,^® Inc. (“AFD”), the principal underwriter of the funds’ shares, and American Funds Service Company^® (“AFS”), the funds’ transfer agent. CRMC, AFD and AFS are considered related parties to each fund.

62	American Funds Tax-Exempt Funds

Investment advisory services — Each fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as average net asset levels increase. The agreements also provide for monthly fees accrued daily based on a series of decreasing rates on each fund’s monthly gross income.

The range of rates, asset and gross income levels and the current annualized rates of average net assets for each fund are as follows:

	Rates						Net asset level (in billions)				Rates						Monthly gross income				For the period
Fund	Beginning with			Ending with			Up to		In excess of		Beginning with			Ending with			Up to		In excess of		ended July 31, 2013
American Funds Short-Term Tax-Exempt Bond Fund		.390	%		.290	%	$	.20	$	1.2		None			None			None		None		.370	%
Limited Term Tax-Exempt Bond Fund of America		.300			.150			.06		1.0		3.00	%		2.50	%	$	3,333,333	$	3,333,333		.244
The Tax-Exempt Bond Fund of America		.300			.120			.06		10.0		3.00			2.00			3,333,333		8,333,333		.239	*
American High-Income Municipal Bond Fund		.300			.150			.06		3.0		3.00			2.50			3,333,333		3,333,333		.319
American Funds Tax-Exempt Fund of New York		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.354
The Tax-Exempt Fund of California		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.321	*

*	The rates shown are annualized based on the 11 months ended July 31, 2013.

CRMC has agreed to reimburse a portion of the fees and expenses of American Funds Tax-Exempt Fund of New York during its startup period. This reimbursement may be adjusted or discontinued by CRMC, subject to any restrictions in the fund’s prospectus. For the year ended July 31, 2013, total fees and expenses reimbursed by CRMC were $100,000. Fees and expenses in the statement of operations are presented gross of any reimbursements from CRMC.

Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class of each fund. The principal class-specific fees and expenses are described below:

Distribution services — Each fund has plans of distribution for all share classes, except Class F-2 shares and Class R-6 shares, if applicable. Under the plans, each fund’s 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. In some cases, the boards of trustees have limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use the allotted percentage 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.

	American Funds Short-Term Tax-Exempt Bond Fund				Limited Term Tax-Exempt Bond Fund of America						The Tax-Exempt Bond Fund of America
Share class	Currently approved limits		Plan limits		Currently approved limits			Plan limits			Currently approved limits			Plan limits
Class A		0.15%		0.15%		0.30	%		0.30	%		0.25	%		0.25	%
Class B		Not applicable		Not applicable		1.00			1.00			1.00			1.00
Class C		Not applicable		Not applicable		1.00			1.00			1.00			1.00
Class F-1		0.25		0.50		0.25			0.50			0.25			0.50

	American High-Income Municipal Bond Fund						American Funds Tax-Exempt Fund of New York						The Tax-Exempt Fund of California
Share class	Currently approved limits			Plan limits			Currently approved limits			Plan limits			Currently approved limits			Plan limits
Class A		0.30	%		0.30	%		0.25	%		0.30	%		0.25	%		0.25	%
Class B		1.00			1.00			1.00			1.00			1.00			1.00
Class C		1.00			1.00			1.00			1.00			1.00			1.00
Class F-1		0.25			0.50			0.25			0.50			0.25			0.50

American Funds Tax-Exempt Funds

For Class A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. This share class of each fund reimburses AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit is not exceeded. As of July 31, 2013, unreimbursed expenses subject to reimbursement for Class A shares of each fund were as follows (dollars in thousands):

Fund	Class A
American Funds Short-Term Tax-Exempt Bond Fund	$	1,134
Limited Term Tax-Exempt Bond Fund of America		909
The Tax-Exempt Bond Fund of America		4,144
American High-Income Municipal Bond Fund		—
American Funds Tax-Exempt Fund of New York		—
The Tax-Exempt Fund of California		558

	Transfer agent services — Each fund has a shareholder services agreement with AFS under which each fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, each fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of its respective fund shareholders.

	Administrative services — Each fund has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to each of the funds’ Class A, C, F and R shares, if applicable. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to each fund’s shareholders. Under the agreements, Class A shares of each fund pay an annual fee of 0.01% and Class C, F and R shares of each fund, if applicable, pay an annual fee of 0.05% of their respective average daily net assets.

	For the year ended July 31, 2013 (11 months ended July 31, 2013, for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California), class-specific expenses under the agreements for each fund were as follows (dollars in thousands):

	American Funds Short-Term Tax-Exempt Bond Fund

Share class	Distribution services		Transfer agent services		Administrative services
Class A		$977		$184		$65
Class F-1		54		29		11
Class F-2		Not applicable		39		17
Total class-specific expenses		$1,031		$252		$93

Limited Term Tax-Exempt Bond Fund of America

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$8,067		$762			$269
Class B		44		1			Not applicable
Class C		630		19			31
Class F-1		331		173			67
Class F-2		Not applicable		169			78
Class R-6		Not applicable		—	*		55
Total class-specific expenses		$9,072		$1,124			$500

The Tax-Exempt Bond Fund of America

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$17,412		$2,247			$696
Class B		233		9			Not applicable
Class C		3,855		132			193
Class F-1		3,701		1,830			742
Class F-2		Not applicable		294			142
Class R-6		Not applicable		—	*		39
Total class-specific expenses		$25,201		$4,512			$1,812

64	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$6,513		$1,251			$244
Class B		132		8			Not applicable
Class C		1,803		97			90
Class F-1		486		258			98
Class F-2		Not applicable		131			58
Class R-6		Not applicable		—	*		17
Total class-specific expenses		$8,934		$1,745			$507

American Funds Tax-Exempt Fund of New York

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$138		$37			$11
Class B		3		—	*		Not applicable
Class C		82		3			4
Class F-1		4		3			1
Class F-2		Not applicable		15			7
Total class-specific expenses		$227		$58			$23

The Tax-Exempt Fund of California

Share class	Distribution services		Transfer agent services		Administrative services
Class A		$3,081		$299		$123
Class B		39		1		Not applicable
Class C		891		23		45
Class F-1		182		96		36
Class F-2		Not applicable		94		41
Total class-specific expenses		$4,193		$513		$245

*	Amount less than one thousand.

	For the year ended August 31, 2012, class-specific expenses under the agreements for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California were as follows (dollars in thousands):

	The Tax-Exempt Bond Fund of America

Share class	Distribution services		Transfer agent services		Administrative services
Class A		$17,399		$2,016		$475
Class B		348		9		Not applicable
Class C		3,909		114		193
Class F-1		3,489		1,413		653
Class F-2		Not applicable		188		106
Class R-6^†		Not applicable		—		3
Total class-specific expenses		$25,145		$3,740		$1,430

The Tax-Exempt Fund of California

Share class	Distribution services		Transfer agent services		Administrative services
Class A		$3,181		$279		$86
Class B		59		2		Not applicable
Class C		958		21		48
Class F-1		196		66		40
Class F-2		Not applicable		47		27
Total class-specific expenses		$4,394		$415		$201

^†	Class R-6 shares were offered beginning May 11, 2012.

American Funds Tax-Exempt Funds

Trustees’ deferred compensation — 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 each fund, are treated as if invested in shares of the funds or other American Funds. These amounts represent general, unsecured liabilities of each fund and vary according to the total returns of the selected funds. Trustees’ compensation, shown on the accompanying financial statements, includes the current fees (either paid in cash or deferred) and the net increase in the value of the deferred amounts as follows (dollars in thousands):

Fund	Current fees		Increase in value of deferred amounts			Total trustees’ compensation
American Funds Short-Term Tax-Exempt Bond Fund	$	4	$	3		$	7
Limited Term Tax-Exempt Bond Fund of America		18		17			35
The Tax-Exempt Bond Fund of America		54		31			85
American High-Income Municipal Bond Fund		16		12			28
American Funds Tax-Exempt Fund of New York		1		—	*		1
The Tax-Exempt Fund of California		9		15			24

*	Amount less than one thousand.

Affiliated officers and trustees — Officers and certain trustees of the funds are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the funds.

7. Capital share transactions

Capital share transactions in the funds were as follows (dollars and shares in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

	Sales¹				Reinvestments of dividends and distributions				Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2013

Class A	$	332,155		32,286	$	6,918		672	$	(236,422	)		(22,971	)	$	102,651			9,987
Class F-1		21,838		2,125		211		20		(10,150	)		(986	)		11,899			1,159
Class F-2		45,810		4,443		324		32		(23,572	)		(2,288	)		22,562			2,187
Total net increase (decrease)	$	399,803		38,854	$	7,453		724	$	(270,144	)		(26,245	)	$	137,112			13,333

Year ended July 31, 2012

Class A	$	239,051		23,269	$	6,021		586	$	(164,717	)		(16,028	)	$	80,355			7,827
Class F-1		11,263		1,096		170		17		(7,384	)		(718	)		4,049			395
Class F-2		9,363		911		167		16		(11,845	)		(1,150	)		(2,315	)		(223	)
Total net increase (decrease)	$	259,677		25,276	$	6,358		619	$	(183,946	)		(17,896	)	$	82,089			7,999

66	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Sales¹				Reinvestments of dividends and distributions				Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2013

Class A	$	707,744		43,319	$	61,484		3,769	$	(621,149	)		(38,195	)	$	148,079			8,893
Class B		738		45		75		4		(3,419	)		(209	)		(2,606	)		(160	)
Class C		15,073		924		1,011		62		(40,512	)		(2,484	)		(24,428	)		(1,498	)
Class F-1		57,039		3,490		3,091		190		(66,099	)		(4,051	)		(5,969	)		(371	)
Class F-2		67,131		4,101		3,098		190		(80,177	)		(4,915	)		(9,948	)		(624	)
Class R-6		126,421		7,718		3,016		185		(37,302	)		(2,299	)		92,135			5,604
Total net increase (decrease)	$	974,146		59,597	$	71,775		4,400	$	(848,658	)		(52,153	)	$	197,263			11,844

Year ended July 31, 2012

Class A	$	620,629		38,458	$	58,799		3,640	$	(438,432	)		(27,206	)	$	240,996			14,892
Class B		1,643		102		143		9		(6,120	)		(380	)		(4,334	)		(269	)
Class C		24,085		1,492		1,301		80		(21,524	)		(1,332	)		3,862			240
Class F-1		52,442		3,253		3,097		192		(31,929	)		(1,981	)		23,610			1,464
Class F-2		69,235		4,302		3,275		203		(46,899	)		(2,903	)		25,611			1,602
Class R-6²		43,131		2,645		154		9		—			—			43,285			2,654
Total net increase (decrease)	$	811,165		50,252	$	66,769		4,133	$	(544,904	)		(33,802	)	$	333,030			20,583

The Tax-Exempt Bond Fund of America

	Sales¹				Reinvestments of dividends				Repurchases¹						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Period ended July 31, 2013³

Class A	$	1,131,755		86,059	$	211,228		16,170	$	(1,429,360	)		(110,055	)	$	(86,377	)		(7,826	)
Class B		1,532		117		579		44		(11,683	)		(894	)		(9,572	)		(733	)
Class C		89,902		6,840	��	9,169		702		(123,504	)		(9,497	)		(24,433	)		(1,955	)
Class F-1		559,486		42,780		47,063		3,606		(388,334	)		(29,698	)		218,215			16,688
Class F-2		200,255		15,202		7,871		603		(101,698	)		(7,795	)		106,428			8,010
Class R-6		95,101		7,236		2,806		215		(18,398	)		(1,417	)		79,509			6,034
Total net increase (decrease)	$	2,078,031		158,234	$	278,716		21,340	$	(2,072,977	)		(159,356	)	$	283,770			20,218

Year ended August 31, 2012

Class A	$	1,110,952		87,424	$	230,874		18,149	$	(903,292	)		(71,308	)	$	438,534			34,265
Class B		3,157		248		965		76		(16,810	)		(1,328	)		(12,688	)		(1,004	)
Class C		97,430		7,659		10,365		815		(82,627	)		(6,515	)		25,168			1,959
Class F-1		415,779		32,717		49,821		3,915		(386,444	)		(30,571	)		79,156			6,061
Class F-2		77,435		6,086		6,382		502		(54,378	)		(4,280	)		29,439			2,308
Class R-6²		43,416		3,346		265		20		(2,593	)		(198	)		41,088			3,168
Total net increase (decrease)	$	1,748,169		137,480	$	298,672		23,477	$	(1,446,144	)		(114,200	)	$	600,697			46,757

Year ended August 31, 2011

Class A	$	743,275		61,503	$	233,946		19,447	$	(1,956,006	)		(163,722	)	$	(978,785	)		(82,772	)
Class B		2,794		231		1,587		132		(38,878	)		(3,240	)		(34,497	)		(2,877	)
Class C		59,619		4,919		11,418		949		(161,960	)		(13,583	)		(90,923	)		(7,715	)
Class F-1		524,497		43,660		51,196		4,258		(570,088	)		(47,399	)		5,605			519
Class F-2		80,521		6,689		5,803		482		(100,558	)		(8,442	)		(14,234	)		(1,271	)
Total net increase (decrease)	$	1,410,706		117,002	$	303,950		25,268	$	(2,827,490	)		(236,386	)	$	(1,112,834	)		(94,116	)

See end of capital share transactions tables for footnotes.

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Sales¹				Reinvestments of dividends				Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2013

Class A	$	618,787		40,219	$	92,473		6,043	$	(642,382	)		(42,211	)	$	68,878			4,051
Class B		1,288		84		418		28		(7,512	)		(491	)		(5,806	)		(379	)
Class C		52,691		3,422		5,564		364		(59,620	)		(3,918	)		(1,365	)		(132	)
Class F-1		64,636		4,209		7,685		502		(83,288	)		(5,444	)		(10,967	)		(733	)
Class F-2		77,180		5,011		4,334		283		(34,989	)		(2,296	)		46,525			2,998
Class R-6		52,876		3,445		1,513		99		(6,177	)		(406	)		48,212			3,138
Total net increase (decrease)	$	867,458		56,390	$	111,987		7,319	$	(833,968	)		(54,766	)	$	145,477			8,943

Year ended July 31, 2012

Class A	$	509,689		35,236	$	82,858		5,750	$	(344,207	)		(24,044	)	$	248,340			16,942
Class B		2,931		203		643		45		(10,779	)		(750	)		(7,205	)		(502	)
Class C		50,802		3,512		5,127		356		(36,751	)		(2,545	)		19,178			1,323
Class F-1		67,402		4,664		7,320		508		(45,845	)		(3,175	)		28,877			1,997
Class F-2		49,208		3,425		3,064		212		(30,888	)		(2,116	)		21,384			1,521
Class R-6²		12,916		867		86		5		—			—			13,002			872
Total net increase (decrease)	$	692,948		47,907	$	99,098		6,876	$	(468,470	)		(32,630	)	$	323,576			22,153

American Funds Tax-Exempt Fund of New York

	Sales¹				Reinvestments of dividends					Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount			Shares

Year ended July 31, 2013

Class A	$	28,904		2,656	$	1,752		163		$	(30,561	)		(2,824	)	$	95			(5	)
Class B		132		12		5		—	⁴		(220	)		(20	)		(83	)		(8	)
Class C		3,039		279		152		13			(1,779	)		(166	)		1,412			126
Class F-1		686		63		38		4			(1,649	)		(153	)		(925	)		(86	)
Class F-2		3,639		333		389		36			(1,693	)		(157	)		2,335			212
Total net increase (decrease)	$	36,400		3,343	$	2,336		216		$	(35,902	)		(3,320	)	$	2,834			239

Year ended July 31, 2012

Class A	$	45,107		4,328	$	978		93		$	(9,125	)		(869	)	$	36,960			3,552
Class B		324		31		5		1			(197	)		(19	)		132			13
Class C		5,355		513		90		9			(1,040	)		(99	)		4,405			423
Class F-1		1,471		141		31		3			(112	)		(11	)		1,390			133
Class F-2		11,427		1,098		234		22			(2,547	)		(240	)		9,114			880
Total net increase (decrease)	$	63,684		6,111	$	1,338		128		$	(13,021	)		(1,238	)	$	52,001			5,001

68	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

	Sales¹				Reinvestments of dividends				Repurchases¹						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Period ended July 31, 2013³

Class A	$	193,455		10,951	$	38,106		2,170	$	(252,947	)		(14,437	)	$	(21,386	)		(1,316	)
Class B		152		9		107		6		(1,770	)		(100	)		(1,511	)		(85	)
Class C		13,276		752		2,279		130		(25,286	)		(1,445	)		(9,731	)		(563	)
Class F-1		21,002		1,190		2,406		137		(27,933	)		(1,583	)		(4,525	)		(256	)
Class F-2		41,142		2,325		2,545		145		(21,766	)		(1,234	)		21,921			1,236
Total net increase (decrease)	$	269,027		15,227	$	45,443		2,588	$	(329,702	)		(18,799	)	$	(15,232	)		(984	)

Year ended August 31, 2012

Class A	$	182,575		10,756	$	41,258		2,425	$	(198,977	)		(11,739	)	$	24,856			1,442
Class B		671		40		172		10		(3,225	)		(191	)		(2,382	)		(141	)
Class C		18,778		1,108		2,526		149		(18,309	)		(1,080	)		2,995			177
Class F-1		18,220		1,071		2,836		166		(26,762	)		(1,588	)		(5,706	)		(351	)
Class F-2		36,372		2,135		1,813		106		(9,247	)		(544	)		28,938			1,697
Total net increase (decrease)	$	256,616		15,110	$	48,605		2,856	$	(256,520	)		(15,142	)	$	48,701			2,824

Year ended August 31, 2011

Class A	$	127,127		7,962	$	41,794		2,631	$	(358,062	)		(22,639	)	$	(189,141	)		(12,046	)
Class B		413		26		254		16		(4,918	)		(309	)		(4,251	)		(267	)
Class C		10,517		658		2,669		168		(35,667	)		(2,256	)		(22,481	)		(1,430	)
Class F-1		16,095		1,007		3,220		202		(41,701	)		(2,649	)		(22,386	)		(1,440	)
Class F-2		13,461		848		1,208		76		(18,354	)		(1,154	)		(3,685	)		(230	)
Total net increase (decrease)	$	167,613		10,501	$	49,145		3,093	$	(458,702	)		(29,007	)	$	(241,944	)		(15,413	)

¹	Includes exchanges between share classes of the fund.
²	Class R-6 shares were offered beginning May 11, 2012.
³	In 2013, the fund changed its fiscal year-end from August to July.
⁴	Amount less than one thousand.

8. Investment transactions

Each fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, during the year ended July 31, 2013 (11 months ended July 31, 2013, for the Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California), as follows (dollars in thousands):

Fund	Purchases		Sales
American Funds Short-Term Tax-Exempt Bond Fund	$	184,866	$	138,336
Limited Term Tax-Exempt Bond Fund of America		508,558		385,330
The Tax-Exempt Bond Fund of America		1,573,032		1,451,794
American High-Income Municipal Bond Fund		836,302		705,481
American Funds Tax-Exempt Fund of New York		27,828		28,449
The Tax-Exempt Fund of California		178,832		183,951

9. Ownership concentration

At July 31, 2013, CRMC held aggregate ownership of 31% of the outstanding shares of American Funds Tax-Exempt Fund of New York. The ownership represents the seed money invested in the fund when it began operations on November 1, 2010.

American Funds Tax-Exempt Funds

Financial highlights

American Funds Short-Term Tax-Exempt Bond Fund

			Income (loss) from investment operations¹								Dividends and distributions
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimburse- ments/waivers			Ratio of expenses to average net assets after reimburse- ments/waivers³			Ratio of net income to average net assets³
Class A⁴:
Year ended 7/31/2013	$	10.32	$	.13	$	(.11	)	$	.02		$	(.13	)	$	—	⁵	$	(.13	)	$	10.21		.16	%	$	701		.59	%		.59	%		1.21	%
Year ended 7/31/2012		10.23		.13		.09			.22			(.13	)		—			(.13	)		10.32		2.17			606		.59			.59			1.27
Year ended 7/31/2011		10.20		.12		.03			.15			(.12	)		—			(.12	)		10.23		1.53			520		.60			.60			1.24
Year ended 7/31/2010		10.00		.10		.20			.30			(.10	)		—			(.10	)		10.20		3.06			412		.65			.53			1.00
Period from 10/1/2008 to 7/31/2009^6,7		10.00		.03		—			.03			(.03	)		—			(.03	)		10.00		.33			501		.52	⁸		.46	⁸		.44	⁸
Year ended 9/30/2008		10.00		.20		—			.20			(.20	)		—			(.20	)		10.00		1.99			810		.47			.43			1.93
Class F-1:
Year ended 7/31/2013		10.32		.10		(.11	)		(.01	)		(.10	)		—	⁵		(.10	)		10.21		(.08	)		30		.84			.84			.96
Year ended 7/31/2012		10.23		.11		.09			.20			(.11	)		—			(.11	)		10.32		1.98			18		.78			.78			1.09
Year ended 7/31/2011		10.20		.11		.03			.14			(.11	)		—			(.11	)		10.23		1.34			14		.79			.79			1.04
Period from 8/27/2009 to 7/31/2010⁶		10.00		.10		.19			.29			(.09	)		—			(.09	)		10.20		2.93			5		.79	⁸		.64	⁸		1.06	⁸
Class F-2:
Year ended 7/31/2013		10.32		.13		(.11	)		.02			(.13	)		—	⁵		(.13	)		10.21		.19			37		.56			.56			1.23
Year ended 7/31/2012		10.23		.14		.09			.23			(.14	)		—			(.14	)		10.32		2.24			15		.52			.52			1.33
Year ended 7/31/2011		10.20		.13		.03			.16			(.13	)		—			(.13	)		10.23		1.58			17		.55			.55			1.28
Period from 8/12/2009 to 7/31/2010⁶		10.00		.13		.18			.31			(.11	)		—			(.11	)		10.20		3.16			8		.51	⁸		.45	⁸		1.39	⁸

	Year ended July 31
	2013			2012			2011			2010
Portfolio turnover rate for all share classes		22	%		14	%		12	%		5	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC agreed to pay a portion of fees and expenses due to lower short-term interest rates.
⁴	Reflects the board of trustees’ approval of a 10-for-1 reverse stock split of the shares of the fund, effective August 7,2009.
⁵	Amount less than $.01.
⁶	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁷	In 2009, the fund changed its fiscal year-end from September to July.
⁸	Annualized.

See Notes to Financial Statements

70	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

			(Loss) income from investment operations¹								Dividends and distributions
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers			Ratio of expenses to average net assets after waivers³			Ratio of net income to average net assets³
Class A:
Year ended 7/31/2013	$	16.36	$	.40	$	(.42	)	$	(.02	)	$	(.40	)	$	—	⁴	$	(.40	)	$	15.94		(.13	)%	$	2,625		.60	%		.60	%		2.45	%
Year ended 7/31/2012		15.85		.44		.51			.95			(.44	)		—			(.44	)		16.36		6.06			2,549		.60			.60			2.72
Year ended 7/31/2011		15.78		.46		.07			.53			(.46	)		—			(.46	)		15.85		3.41			2,232		.60			.60			2.93
Year ended 7/31/2010		15.11		.48		.67			1.15			(.48	)		—			(.48	)		15.78		7.71			2,316		.61			.61			3.08
Year ended 7/31/2009		15.01		.50		.10			.60			(.50	)		—			(.50	)		15.11		4.12			1,700		.64			.63			3.36
Class B:
Year ended 7/31/2013		16.36		.29		(.42	)		(.13	)		(.29	)		—	⁴		(.29	)		15.94		(.82	)		3		1.29			1.29			1.78
Year ended 7/31/2012		15.85		.33		.51			.84			(.33	)		—			(.33	)		16.36		5.33			6		1.30			1.30			2.04
Year ended 7/31/2011		15.78		.35		.07			.42			(.35	)		—			(.35	)		15.85		2.69			10		1.31			1.31			2.24
Year ended 7/31/2010		15.11		.37		.67			1.04			(.37	)		—			(.37	)		15.78		6.96			21		1.31			1.31			2.40
Year ended 7/31/2009		15.01		.40		.10			.50			(.40	)		—			(.40	)		15.11		3.40			25		1.34			1.33			2.69
Class C:
Year ended 7/31/2013		16.36		.28		(.42	)		(.14	)		(.28	)		—	⁴		(.28	)		15.94		(.87	)		49		1.34			1.34			1.72
Year ended 7/31/2012		15.85		.32		.51			.83			(.32	)		—			(.32	)		16.36		5.27			75		1.34			1.34			1.99
Year ended 7/31/2011		15.78		.34		.07			.41			(.34	)		—			(.34	)		15.85		2.64			69		1.36			1.36			2.19
Year ended 7/31/2010		15.11		.36		.67			1.03			(.36	)		—			(.36	)		15.78		6.91			91		1.36			1.36			2.34
Year ended 7/31/2009		15.01		.39		.10			.49			(.39	)		—			(.39	)		15.11		3.35			73		1.39			1.38			2.64
Class F-1:
Year ended 7/31/2013		16.36		.39		(.42	)		(.03	)		(.39	)		—	⁴		(.39	)		15.94		(.22	)		122		.69			.69			2.37
Year ended 7/31/2012		15.85		.43		.51			.94			(.43	)		—			(.43	)		16.36		6.00			132		.65			.65			2.67
Year ended 7/31/2011		15.78		.45		.07			.52			(.45	)		—			(.45	)		15.85		3.37			104		.65			.65			2.89
Year ended 7/31/2010		15.11		.47		.67			1.14			(.47	)		—			(.47	)		15.78		7.68			112		.63			.63			3.06
Year ended 7/31/2009		15.01		.50		.10			.60			(.50	)		—			(.50	)		15.11		4.11			108		.66			.64			3.33
Class F-2:
Year ended 7/31/2013		16.36		.43		(.42	)		.01			(.43	)		—	⁴		(.43	)		15.94		.05			148		.42			.42			2.64
Year ended 7/31/2012		15.85		.47		.51			.98			(.47	)		—			(.47	)		16.36		6.28			162		.38			.38			2.94
Year ended 7/31/2011		15.78		.49		.07			.56			(.49	)		—			(.49	)		15.85		3.65			132		.38			.38			3.15
Year ended 7/31/2010		15.11		.52		.67			1.19			(.52	)		—			(.52	)		15.78		7.97			125		.36			.36			3.35
Period from 8/18/2008 to 7/31/2009⁵		15.15		.50		(.04	)		.46			(.50	)		—			(.50	)		15.11		3.15			204		.38	⁶		.38	⁶		3.51	⁶
Class R-6:
Year ended 7/31/2013		16.36		.45		(.42	)		.03			(.45	)		—	⁴		(.45	)		15.94		.16			132		.31			.31			2.72
Period from 5/11/2012 to 7/31/2012⁵		16.32		.10		.05			.15			(.11	)		—			(.11	)		16.36		.90			43		.07			.07			.64

	Year ended July 31
	2013			2012			2011			2010			2009
Portfolio turnover rate for all share classes		13	%		9	%		14	%		13	%		7	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain waivers from CRMC. During one of the periods shown, CRMC reduced fees for investment advisory services.
⁴	Amount less than $.01.
⁵	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁶	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

The Tax-Exempt Bond Fund of America

			(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3		Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers		Ratio of expenses to average net assets after waivers³		Ratio of net income to average net assets³
Class A:
Period from 9/1/2012 to 7/31/2013^4,5	$	13.08	$	.40	$	(.64	)	$	(.24	)	$	(.40	)	$	12.44	(1.93	)%	$	6,984	.55	%⁶	.55	%⁶	3.35	%⁶
Year ended 8/31/2012		12.26		.47		.82			1.29			(.47	)		13.08	10.71			7,445	.55		.55		3.73
Year ended 8/31/2011		12.53		.48		(.27	)		.21			(.48	)		12.26	1.85			6,557	.55		.55		4.01
Year ended 8/31/2010		11.82		.48		.71			1.19			(.48	)		12.53	10.23			7,740	.54		.54		3.92
Year ended 8/31/2009		12.03		.50		(.21	)		.29			(.50	)		11.82	2.65			7,130	.56		.56		4.39
Year ended 8/31/2008		12.19		.51		(.16	)		.35			(.51	)		12.03	2.87			6,319	.56		.53		4.16
Class B:
Period from 9/1/2012 to 7/31/2013^4,5		13.08		.31		(.64	)		(.33	)		(.31	)		12.44	(2.59	)		20	1.30	⁶	1.30	⁶	2.61	⁶
Year ended 8/31/2012		12.26		.38		.82			1.20			(.38	)		13.08	9.90			30	1.29		1.29		3.01
Year ended 8/31/2011		12.53		.39		(.27	)		.12			(.39	)		12.26	1.08			40	1.30		1.30		3.26
Year ended 8/31/2010		11.82		.38		.71			1.09			(.38	)		12.53	9.41			78	1.30		1.30		3.18
Year ended 8/31/2009		12.03		.41		(.21	)		.20			(.41	)		11.82	1.88			107	1.32		1.31		3.65
Year ended 8/31/2008		12.19		.41		(.16	)		.25			(.41	)		12.03	2.10			114	1.31		1.28		3.42
Class C:
Period from 9/1/2012 to 7/31/2013^4,5		13.08		.31		(.64	)		(.33	)		(.31	)		12.44	(2.64	)		375	1.34	⁶	1.34	⁶	2.56	⁶
Year ended 8/31/2012		12.26		.37		.82			1.19			(.37	)		13.08	9.85			420	1.34		1.34		2.94
Year ended 8/31/2011		12.53		.39		(.27	)		.12			(.39	)		12.26	1.03			370	1.35		1.35		3.21
Year ended 8/31/2010		11.82		.38		.71			1.09			(.38	)		12.53	9.35			475	1.34		1.34		3.11
Year ended 8/31/2009		12.03		.41		(.21	)		.20			(.41	)		11.82	1.83			399	1.36		1.36		3.58
Year ended 8/31/2008		12.19		.41		(.16	)		.25			(.41	)		12.03	2.05			313	1.36		1.33		3.36
Class F-1:
Period from 9/1/2012 to 7/31/2013^4,5		13.08		.39		(.64	)		(.25	)		(.39	)		12.44	(2.05	)		1,659	.68	⁶	.68	⁶	3.21	⁶
Year ended 8/31/2012		12.26		.46		.82			1.28			(.46	)		13.08	10.59			1,526	.66		.66		3.62
Year ended 8/31/2011		12.53		.47		(.27	)		.20			(.47	)		12.26	1.73			1,356	.66		.66		3.90
Year ended 8/31/2010		11.82		.46		.71			1.17			(.46	)		12.53	10.12			1,380	.64		.64		3.80
Year ended 8/31/2009		12.03		.49		(.21	)		.28			(.49	)		11.82	2.56			976	.65		.64		4.31
Year ended 8/31/2008		12.19		.50		(.16	)		.34			(.50	)		12.03	2.79			1,020	.63		.61		4.07
Class F-2:
Period from 9/1/2012 to 7/31/2013^4,5		13.08		.42		(.64	)		(.22	)		(.42	)		12.44	(1.81	)		327	.42	⁶	.42	⁶	3.49	⁶
Year ended 8/31/2012		12.26		.49		.82			1.31			(.49	)		13.08	10.88			239	.40		.40		3.87
Year ended 8/31/2011		12.53		.50		(.27	)		.23			(.50	)		12.26	1.99			196	.41		.41		4.15
Year ended 8/31/2010		11.82		.50		.71			1.21			(.50	)		12.53	10.41			216	.37		.37		4.09
Year ended 8/31/2009		12.03		.51		(.21	)		.30			(.51	)		11.82	2.80			253	.39		.39		4.36
Period from 8/1/2008 to 8/31/2008⁴		11.94		.04		.09			.13			(.04	)		12.03	1.10			3	.04		.03		.34
Class R-6:
Period from 9/1/2012 to 7/31/2013^4,5		13.08		.43		(.64	)		(.21	)		(.43	)		12.44	(1.71	)		115	.31	⁶	.31	⁶	3.58	⁶
Period from 5/11/2012 to 8/31/2012⁴		12.94		.14		.15			.29			(.15	)		13.08	2.25			42	.09		.09		1.15

	For the period 9/1/2012 to			Year ended August 31
	7/31/2013^4,5			2012			2011			2010			2009			2008
Portfolio turnover rate for all share classes		16	%		14	%		12	%		16	%		18	%		20	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	In 2013, the fund changed its fiscal year-end from August to July.
⁶	Annualized.

See Notes to Financial Statements

72	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

			(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3		Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers		Ratio of expenses to average net assets after waivers³		Ratio of net income to average net assets³
Class A:
Year ended 7/31/2013	$	15.13	$	.63	$	(.65	)	$	(.02	)	$	(.63	)	$	14.48	(.25	)%	$	2,246	.69	%	.69	%	4.14	%
Year ended 7/31/2012		13.78		.66		1.35			2.01			(.66	)		15.13	14.98			2,286	.68		.68		4.64
Year ended 7/31/2011		13.97		.67		(.19	)		.48			(.67	)		13.78	3.57			1,849	.64		.64		4.86
Year ended 7/31/2010		12.69		.66		1.28			1.94			(.66	)		13.97	15.50			2,109	.68		.68		4.82
Year ended 7/31/2009		14.21		.68		(1.52	)		(.84	)		(.68	)		12.69	(5.69	)		1,738	.72		.70		5.43
Class B:
Year ended 7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48	(.97	)		10	1.42		1.42		3.42
Year ended 7/31/2012		13.78		.56		1.35			1.91			(.56	)		15.13	14.14			16	1.42		1.42		3.96
Year ended 7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78	2.78			21	1.41		1.41		4.07
Year ended 7/31/2010		12.69		.56		1.28			1.84			(.56	)		13.97	14.67			36	1.42		1.42		4.11
Year ended 7/31/2009		14.21		.59		(1.52	)		(.93	)		(.59	)		12.69	(6.39	)		43	1.46		1.45		4.70
Class C:
Year ended 7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48	(1.02	)		161	1.46		1.46		3.37
Year ended 7/31/2012		13.78		.55		1.35			1.90			(.55	)		15.13	14.09			170	1.46		1.46		3.86
Year ended 7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78	2.73			137	1.46		1.46		4.03
Year ended 7/31/2010		12.69		.55		1.28			1.83			(.55	)		13.97	14.60			163	1.46		1.46		4.03
Year ended 7/31/2009		14.21		.58		(1.52	)		(.94	)		(.58	)		12.69	(6.44	)		126	1.51		1.50		4.63
Class F-1:
Year ended 7/31/2013		15.13		.62		(.65	)		(.03	)		(.62	)		14.48	(.35	)		172	.79		.79		4.04
Year ended 7/31/2012		13.78		.65		1.35			2.00			(.65	)		15.13	14.89			191	.76		.76		4.56
Year ended 7/31/2011		13.97		.65		(.19	)		.46			(.65	)		13.78	3.45			146	.76		.76		4.73
Year ended 7/31/2010		12.69		.65		1.28			1.93			(.65	)		13.97	15.42			181	.75		.75		4.75
Year ended 7/31/2009		14.21		.67		(1.52	)		(.85	)		(.67	)		12.69	(5.77	)		156	.80		.78		5.35
Class F-2:
Year ended 7/31/2013		15.13		.66		(.65	)		.01			(.66	)		14.48	(.09	)		126	.52		.52		4.31
Year ended 7/31/2012		13.78		.69		1.35			2.04			(.69	)		15.13	15.20			87	.49		.49		4.81
Year ended 7/31/2011		13.97		.69		(.19	)		.50			(.69	)		13.78	3.74			58	.48		.48		5.03
Year ended 7/31/2010		12.69		.68		1.28			1.96			(.68	)		13.97	15.72			50	.48		.48		5.00
Period from 8/12/2008 to 7/31/2009⁴		14.28		.66		(1.58	)		(.92	)		(.67	)		12.69	(6.19	)		32	.53	⁵	.53	⁵	5.50	⁵
Class R-6:
Year ended 7/31/2013		15.13		.68		(.65	)		.03			(.68	)		14.48	.02			58	.40		.40		4.44
Period from 5/11/2012 to 7/31/2012⁴		14.86		.14		.28			.42			(.15	)		15.13	2.85			13	.08		.08		1.00

	Year ended July 31
	2013			2012			2011			2010			2009
Portfolio turnover rate for all share classes		25	%		20	%		18	%		15	%		29	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain waivers from CRMC. During one of the periods shown, CRMC reduced fees for investment advisory services.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

American Funds Tax-Exempt Fund of New York

			(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3		Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements		Ratio of expenses to average net assets after reimbursements³		Ratio of net income to average net assets³
Class A:
Year ended 7/31/2013	$	10.85	$	.31	$	(.64	)	$	(.33	)	$	(.31	)	$	10.21	(3.16	)%	$	99,811	.66	%	.59	%	2.88	%
Year ended 7/31/2012		9.98		.32		.87			1.19			(.32	)		10.85	12.11			106,145	.76		.63		3.06
Period from 11/1/2010⁴ to 7/31/2011⁵		10.00		.21		(.03	)		.18			(.20	)		9.98	1.83			62,229	.97	⁶	.67	⁶	2.82	⁶
Class B:
Year ended 7/31/2013		10.85		.22		(.64	)		(.42	)		(.22	)		10.21	(4.00	)		174	1.53		1.46		1.99
Year ended 7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85	11.18			271	1.59		1.45		2.24
Period from 11/1/2010⁴ to 7/31/2011⁵		10.00		.15		(.03	)		.12			(.14	)		9.98	1.24			120	1.76	⁶	1.48	⁶	2.21	⁶
Class C:
Year ended 7/31/2013		10.85		.21		(.64	)		(.43	)		(.21	)		10.21	(4.04	)		7,763	1.58		1.50		1.96
Year ended 7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85	11.12			6,875	1.62		1.50		2.17
Period from 11/1/2010⁴ to 7/31/2011⁵		10.00		.15		(.03	)		.12			(.14	)		9.98	1.26			2,103	1.75	⁶	1.55	⁶	2.27	⁶
Class F-1:
Year ended 7/31/2013		10.85		.29		(.64	)		(.35	)		(.29	)		10.21	(3.36	)		1,372	.86		.79		2.67
Year ended 7/31/2012		9.98		.31		.87			1.18			(.31	)		10.85	11.95			2,392	.86		.74		2.94
Period from 11/1/2010⁴ to 7/31/2011⁵		10.00		.20		(.03	)		.17			(.19	)		9.98	1.76			872	1.03	⁶	.78	⁶	2.71	⁶
Class F-2:
Year ended 7/31/2013		10.85		.31		(.64	)		(.33	)		(.31	)		10.21	(3.14	)		14,378	.64		.57		2.90
Year ended 7/31/2012		9.98		.33		.87			1.20			(.33	)		10.85	12.21			12,983	.63		.53		3.13
Period from 11/1/2010⁴ to 7/31/2011⁵		10.00		.22		(.03	)		.19			(.21	)		9.98	1.92			3,162	.70	⁶	.55	⁶	3.08	⁶

	Year ended July 31						For the period
	2013			2012			11/1/2010⁴ to 7/31/2011⁵
Portfolio turnover rate for all share classes		23	%		15	%		16	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact of certain reimbursements from CRMC. During the periods shown, CRMC reimbursed other fees and expenses.
⁴	Commencement of operations.
⁵	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁶	Annualized.

See Notes to Financial Statements

74	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

				(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3		Net assets, end of period (in millions)			Ratio of expenses to average net assets before waivers		Ratio of expenses to average net assets after waivers³		Ratio of net income to average net assets³
Class A:
Period from 9/1/2012 to 7/31/2013^4,5	$	17.54	$	.59	$	(.82	)	$	(.23	)	$	(.59	)	$	16.72	(1.45	)%	$	1,250		.63	%⁶	.63	%⁶	3.64	%⁶
Year ended 8/31/2012		16.32		.66		1.22			1.88			(.66	)		17.54	11.70			1,334		.63		.63		3.89
Year ended 8/31/2011		16.63		.65		(.31	)		.34			(.65	)		16.32	2.24			1,218		.64		.64		4.08
Year ended 8/31/2010		15.31		.64		1.32			1.96			(.64	)		16.63	13.07			1,442		.62		.62		4.04
Year ended 8/31/2009		15.79		.67		(.48	)		.19			(.67	)		15.31	1.49			1,311		.63		.62		4.59
Year ended 8/31/2008		16.26		.66		(.47	)		.19			(.66	)		15.79	1.22			1,493		.61		.58		4.16
Class B:
Period from 9/1/2012 to 7/31/2013^4,5		17.54		.47		(.82	)		(.35	)		(.47	)		16.72	(2.12	)		3		1.37	⁶	1.37	⁶	2.90	⁶
Year ended 8/31/2012		16.32		.53		1.22			1.75			(.53	)		17.54	10.89			5		1.37		1.37		3.17
Year ended 8/31/2011		16.63		.53		(.31	)		.22			(.53	)		16.32	1.48			7		1.39		1.39		3.33
Year ended 8/31/2010		15.31		.52		1.32			1.84			(.52	)		16.63	12.22			11		1.37		1.37		3.31
Year ended 8/31/2009		15.79		.56		(.48	)		.08			(.56	)		15.31	.73			16		1.39		1.37		3.85
Year ended 8/31/2008		16.26		.54		(.47	)		.07			(.54	)		15.79	.46			21		1.36		1.33		3.41
Class C:
Period from 9/1/2012 to 7/31/2013^4,5		17.54		.46		(.82	)		(.36	)		(.46	)		16.72	(2.16	)		87		1.42	⁶	1.42	⁶	2.85	⁶
Year ended 8/31/2012		16.32		.52		1.22			1.74			(.52	)		17.54	10.83			101		1.42		1.42		3.10
Year ended 8/31/2011		16.63		.52		(.31	)		.21			(.52	)		16.32	1.42			91		1.44		1.44		3.28
Year ended 8/31/2010		15.31		.51		1.32			1.83			(.51	)		16.63	12.17			116		1.42		1.42		3.24
Year ended 8/31/2009		15.79		.55		(.48	)		.07			(.55	)		15.31	.68			105		1.43		1.42		3.79
Year ended 8/31/2008		16.26		.54		(.47	)		.07			(.54	)		15.79	.41			118		1.41		1.38		3.36
Class F-1:
Period from 9/1/2012 to 7/31/2013^4,5		17.54		.56		(.82	)		(.26	)		(.56	)		16.72	(1.58	)		74		.77	⁶	.77	⁶	3.50	⁶
Year ended 8/31/2012		16.32		.64		1.22			1.86			(.64	)		17.54	11.59			82		.73		.73		3.79
Year ended 8/31/2011		16.63		.64		(.31	)		.33			(.64	)		16.32	2.13			82		.74		.74		3.98
Year ended 8/31/2010		15.31		.63		1.32			1.95			(.63	)		16.63	12.97			108		.70		.70		3.97
Year ended 8/31/2009		15.79		.65		(.48	)		.17			(.65	)		15.31	1.41			113		.71		.70		4.52
Year ended 8/31/2008		16.26		.65		(.47	)		.18			(.65	)		15.79	1.14			192		.69		.65		4.08
Class F-2:
Period from 9/1/2012 to 7/31/2013^4,5	��	17.54		.60		(.82	)		(.22	)		(.60	)		16.72	(1.35	)		91		.51	⁶	.51	⁶	3.77	⁶
Year ended 8/31/2012		16.32		.68		1.22			1.90			(.68	)		17.54	11.87			74		.48		.48		4.02
Year ended 8/31/2011		16.63		.67		(.31	)		.36			(.67	)		16.32	2.38			41		.50		.50		4.22
Year ended 8/31/2010		15.31		.67		1.32			1.99			(.67	)		16.63	13.27			46		.43		.43		4.27
Year ended 8/31/2009		15.79		.69		(.48	)		.21			(.69	)		15.31	1.67			99		.45		.45		4.61
Period from 8/22/2008 to 8/31/2008⁴		15.79		.02		—	⁷		.02			(.02	)		15.79	.09			—	⁸	.01		.01		.10

	For the period 9/1/2012 to	Year ended August 31
	7/31/2013^4,5	2012	2011	2010	2009	2008
Portfolio turnover rate for all share classes	12%	15%	10%	18%	17%	16%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	In 2013, the fund changed its fiscal year-end from August to July.
⁶	Annualized.
⁷	Amount less than $.01.
⁸	Amount less than $1 million.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of American Funds Short-Term Tax-Exempt Bond Fund,
Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America,
American High-Income Municipal Bond Fund and American Funds Tax-Exempt Fund of New York

In our opinion, the accompanying statements of assets and liabilities, including the summary investment portfolios (investment portfolio for American Funds Tax-Exempt Fund of New York), 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 Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund and American Funds Tax-Exempt Fund of New York (the “Funds”) at July 31, 2013, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, 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 Funds’ 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 at July 31, 2013 by correspondence with the custodians and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Los Angeles, California
September 10, 2013

76	American Funds Tax-Exempt Funds

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of The American Funds Tax-Exempt Series II — The Tax-Exempt Fund of California:

We have audited the accompanying statement of assets and liabilities of The American Funds Tax-Exempt Series II — The Tax-Exempt Fund of California (the “Fund”), including the summary investment portfolio, as of July 31, 2013, the related statements of operations for the period from September 1, 2012 through July 31, 2013 and the year ended August 31, 2012, the statements of changes in net assets for the period from September 1, 2012 through July 31, 2013 and the two years ended August 31, 2012, and its financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits 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 and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The American Funds Tax-Exempt Series II — The Tax-Exempt Fund of California as of July 31, 2013, the results of its operations for the period from September 1, 2012 through July 31, 2013 and the year ended August 31, 2012, the changes in its net assets for the period from September 1, 2012 through July 31, 2013 and the two years ended August 31, 2012, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Costa Mesa, California
September 9, 2013

American Funds Tax-Exempt Funds

Expense examples

unaudited

As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. The examples shown on the following pages are intended to help shareholders understand the ongoing costs (in dollars) of investing in the funds so they can compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (February 1, 2013, through July 31, 2013).

Actual expenses:

The first line of each share class of each fund in the tables on the following pages 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 of each fund in the tables on the following pages 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 (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, Class F-1 and F-2 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 the amount of these fees.

Note that the expenses shown in the tables on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), if any. Therefore, the second line of each share class of each fund in the tables 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.

78	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	$	1,000.00	$	997.08	$	2.92		.59	%
Class A — assumed 5% return		1,000.00		1,021.87		2.96		.59
Class F-1 — actual return		1,000.00		995.98		3.96		.80
Class F-1 — assumed 5% return		1,000.00		1,020.83		4.01		.80
Class F-2 — actual return		1,000.00		997.16		2.82		.57
Class F-2 — assumed 5% return		1,000.00		1,021.97		2.86		.57

Limited Term Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	$	1,000.00	$	986.16	$	2.91		.59	%
Class A — assumed 5% return		1,000.00		1,021.87		2.96		.59
Class B — actual return		1,000.00		982.78		6.34		1.29
Class B — assumed 5% return		1,000.00		1,018.40		6.46		1.29
Class C — actual return		1,000.00		982.54		6.54		1.33
Class C — assumed 5% return		1,000.00		1,018.20		6.66		1.33
Class F-1 — actual return		1,000.00		985.75		3.35		.68
Class F-1 — assumed 5% return		1,000.00		1,021.42		3.41		.68
Class F-2 — actual return		1,000.00		987.08		2.02		.41
Class F-2 — assumed 5% return		1,000.00		1,022.76		2.06		.41
Class R-6 — actual return		1,000.00		987.58		1.48		.30
Class R-6 — assumed 5% return		1,000.00		1,023.31		1.51		.30

The Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	$	1,000.00	$	958.20	$	2.62		.54	%
Class A — assumed 5% return		1,000.00		1,022.12		2.71		.54
Class B — actual return		1,000.00		954.67		6.25		1.29
Class B — assumed 5% return		1,000.00		1,018.40		6.46		1.29
Class C — actual return		1,000.00		954.43		6.45		1.33
Class C — assumed 5% return		1,000.00		1,018.20		6.66		1.33
Class F-1 — actual return		1,000.00		957.56		3.25		.67
Class F-1 — assumed 5% return		1,000.00		1,021.47		3.36		.67
Class F-2 — actual return		1,000.00		958.85		1.94		.40
Class F-2 — assumed 5% return		1,000.00		1,022.81		2.01		.40
Class R-6 — actual return		1,000.00		959.36		1.46		.30
Class R-6 — assumed 5% return		1,000.00		1,023.31		1.51		.30

See end of expense examples tables for footnote.

American Funds Tax-Exempt Funds

Expense examples (continued)

American High-Income Municipal Bond Fund

	Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	$	1,000.00	$	952.05	$	3.19		.66	%
Class A — assumed 5% return		1,000.00		1,021.52		3.31		.66
Class B — actual return		1,000.00		948.61		6.72		1.39
Class B — assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class C — actual return		1,000.00		948.38		6.96		1.44
Class C — assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class F-1 — actual return		1,000.00		951.58		3.63		.75
Class F-1 — assumed 5% return		1,000.00		1,021.08		3.76		.75
Class F-2 — actual return		1,000.00		952.84		2.37		.49
Class F-2 — assumed 5% return		1,000.00		1,022.36		2.46		.49
Class R-6 — actual return		1,000.00		953.36		1.84		.38
Class R-6 — assumed 5% return		1,000.00		1,022.91		1.91		.38

American Funds Tax-Exempt Fund of New York

	Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	$	1,000.00	$	948.55	$	3.00		.62	%
Class A — assumed 5% return		1,000.00		1,021.72		3.11		.62
Class B — actual return		1,000.00		944.62		7.04		1.46
Class B — assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class C — actual return		1,000.00		944.41		7.28		1.51
Class C — assumed 5% return		1,000.00		1,017.31		7.55		1.51
Class F-1 — actual return		1,000.00		947.85		3.72		.77
Class F-1 — assumed 5% return		1,000.00		1,020.98		3.86		.77
Class F-2 — actual return		1,000.00		948.84		2.75		.57
Class F-2 — assumed 5% return		1,000.00		1,021.97		2.86		.57

The Tax-Exempt Fund of California

		Beginning account value 2/1/2013		Ending account value 7/31/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return		$	1,000.00	$	958.79	$	3.01		.62	%
Class A — assumed 5% return			1,000.00		1,021.72		3.11		.62
Class B — actual return			1,000.00		955.26		6.59		1.36
Class B — assumed 5% return			1,000.00		1,018.05		6.80		1.36
Class C — actual return	��		1,000.00		955.05		6.83		1.41
Class C — assumed 5% return			1,000.00		1,017.80		7.05		1.41
Class F-1 — actual return			1,000.00		958.12		3.69		.76
Class F-1 — assumed 5% return			1,000.00		1,021.03		3.81		.76
Class F-2 — actual return			1,000.00		959.39		2.38		.49
Class F-2 — assumed 5% return			1,000.00		1,022.36		2.46		.49

*	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).

80	American Funds Tax-Exempt Funds

Tax information

unaudited

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. We hereby designate the following amounts for the period ended July 31, 2013:

Fund	Long-term capital gains		Exempt interest dividends
American Funds Short-Term Tax-Exempt Bond Fund	$	134,000		100	%
Limited Term Tax-Exempt Bond Fund of America		579,000		100
The Tax-Exempt Bond Fund of America		—		100
American High-Income Municipal Bond Fund		—		100
American Funds Tax-Exempt Fund of New York		1,000		100
The Tax-Exempt Fund of California		—		100

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2014, to determine the calendar year amounts to be included on their 2013 tax returns. Shareholders should consult their tax advisors.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement

The funds’ boards (the “board”) have approved each fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2014. The board approved the agreement following the recommendation of each fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that each fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of each fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel. They considered the factors discussed in the following pages, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the funds under each fund’s agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of each fund in light of its objective. They compared each fund’s investment results with those of other relevant funds (including funds that form the basis of the Lipper index for the category in which the fund is included), and market data such as relevant market indexes, over various periods through October 31, 2012. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Short Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays Municipal Short 1-5 Years Index. They noted that the investment results for the fund were stronger than the results of the Lipper average over the 10-month, one-year, three-year and lifetime periods, while lower than those of the Barclays index for those periods.

Limited Term Tax-Exempt Bond Fund of America seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Intermediate Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays Municipal Short-Intermediate 1-10 Years Index. They noted that the investment results for the fund were stronger than the results of the Barclays index for the 10-month, one-year and three-year periods, while lower than those of the Lipper average for all periods shown and those of the Barclays index for the five-year,10-year and lifetime periods. They also noted that the standard deviation of the fund’s returns, a measure of risk, was below the Lipper average for all periods.

82	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper General & Insured Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays Municipal Bond Index. They noted that the investment results for the fund were stronger than the results of the Lipper average for all periods, and were stronger than the results of the Barclays index for the 10-month, one-year and three-year periods (although below the results of the index for the five-year and 10-year periods).

American High-Income Municipal Bond Fund seeks to provide a high level of current income exempt from regular federal income tax. The board and the committee reviewed the fund’s investment results measured against the Lipper High-Yield Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays High Yield Municipal Bond Index. They noted that the investment results for the fund were equal to or stronger than the results of the Lipper average for all periods shown other than the 10-month period, while lower than those of the Barclays index for all periods.

American Funds Tax-Exempt Fund of New York seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper New York Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays New York Municipal Index. They noted that the investment results for the fund were stronger than the results of both the Lipper average and the Barclays index for the 10-month, one-year and lifetime periods.

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California state income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper California Municipal Debt Funds Average (the Lipper category that includes the fund) and the Barclays California Municipal Index. They noted that the investment results for the fund were stronger than the results of the Lipper average for the three-year, five-year, 10-year and lifetime periods (although below the results of the average for the 10-month and one-year periods), and were stronger than the results of the Barclays index for the 10-month, one- and three-year periods (although below the results of the index for the five-year and 10-year periods).

The board and the committee concluded that each fund’s investment results have been satisfactory and that CRMC’s record in managing the funds indicated that its continued management should benefit the funds and their shareholders.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that each fund’s advisory fees and expenses were less than the median fees and expenses of the other funds included in its Lipper category described above, except as follows: (i) although American Funds Short-Term Tax-Exempt Bond Fund’s advisory fees were slightly higher than the median of the other funds included in the Lipper Short Municipal Debt Funds category, its total expenses, both including and excluding distribution expenses, were below the median; and (ii) Limited Term Tax-Exempt Bond Fund of America’s advisory fees were below the median of the other funds in the Lipper Intermediate Municipal Debt Funds category, and although its total expenses were slightly higher than the median of such funds, such expenses less distribution expenses were significantly below the median.

The board and the committee also considered the breakpoint discounts in each fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by each fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the funds.

4. Ancillary benefits

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with each fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of each fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.

84	American Funds Tax-Exempt Funds

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly- held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in each fund’s advisory fee structure. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.

American Funds Tax-Exempt Funds

Boards of trustees and other officers

“Independent” trustees¹

Name and age	Year first elected a trustee of the fund²		Principal occupation(s) during past five years	Number of portfolios in fund complex³overseen by trustee	Other directorships⁴ held by trustee
William H. Baribault, 68	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2010 2010 2010 2010 2010	Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	68	None
James G. Ellis, 66	STEX LTEX TEBF AHIM TEFNY TEFCA	2009 2006 2006 2006 2010 2006	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	69	Quiksilver, Inc.
Leonard R. Fuller, 67	STEX LTEX TEBF AHIM TEFNY TEFCA	1995 1994 1994 1994 2010 1994	President and CEO, Fuller Consulting (financial management consulting firm)	69	None
W. Scott Hedrick, 68	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2010 2010 2010 2010 2010	Founding General Partner, InterWest Partners (venture capital firm)	65	Hot Topic, Inc.; Office Depot, Inc.
R. Clark Hooper, 67 Chairman of the Boards (Independent and Non- Executive)	STEX LTEX TEBF AHIM TEFNY TEFCA	2005 2005 2005 2005 2010 2005	Private investor	71	JPMorgan Value Opportunities Fund, Inc.; The Swiss Helvetia Fund, Inc.
Merit E. Janow, 55	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2010 2010 2010 2010 2010	Dean and Professor, Columbia University, School of International and Public Affairs; former Member, World Trade Organization Appellate Body (2003–2007)	68	The NASDAQ Stock Market LLC; Trimble Navigation Limited
Laurel B. Mitchell, Ph.D., 58	STEX LTEX TEBF AHIM TEFNY TEFCA	2009 2010 2010 2010 2010 2009	Clinical Professor and Director, Accounting Program, University of Redlands	65	None
Frank M. Sanchez, 69	STEX LTEX TEBF AHIM TEFNY TEFCA	1999 1999 1999 1999 2010 1999	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	65	None
Margaret Spellings, 55	STEX LTEX TEBF AHIM TEFNY TEFCA	2009 2010 2010 2010 2010 2010	President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce; former U.S. Secretary of Education, U.S. Department of Education	68	None

86	American Funds Tax-Exempt Funds

Name and age		Year first elected a trustee of the fund²			Principal occupation(s) during past five years		Number of portfolios in fund complex³overseen by trustee		Other directorships⁴ held by trustee
Steadman Upham, Ph.D., 64		STEX LTEX TEBF AHIM TEFNY TEFCA	2009 2007 2007 2007 2010 2007		President and University Professor, The University of Tulsa		68		None

“Interested” trustee^5,6

Name, age and position with fund		Year first elected a trustee or officer of the fund²			Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund		Number of portfolios in fund complex³overseen by trustee		Other directorships⁴ held by trustee
Karl J. Zeile, 46 President: AHIM, TEFNY Vice President: LTEX, TEBF, TEFCA		STEX LTEX TEBF AHIM TEFNY TEFCA	2011 2004 2009 2008 2010 2009		Senior Vice President — Fixed Income, Capital Research and Management Company; Vice President, Capital Guardian Trust Company⁷		6		None

Other officers⁶

Name, age and position with fund	Year first elected an officer of the fund²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund
Brenda S. Ellerin, 50 President: STEX, LTEX Senior Vice President: TEBF	STEX LTEX TEBF	2009 1997 1999	Senior Vice President — Fixed Income, Capital Research and Management Company
Neil L. Langberg, 60 President: TEBF, TEFCA Senior Vice President: STEX, LTEX, AHIM	STEX LTEX TEBF AHIM TEFCA	1989 1993 1985 1994 1986	Senior Vice President — Fixed Income, Capital Research and Management Company; Senior Vice President — Capital Fixed Income Investors, Capital Guardian Trust Company⁷
Kristine M. Nishiyama, 43 Senior Vice President	STEX LTEX TEBF AHIM TEFNY TEFCA	2003 2003 2003 2003 2010 2003	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President and General Counsel, Capital Bank and Trust Company⁷
Jerome H. Solomon, 50 Vice President	TEFNY	2011	Vice President — Fixed Income, Capital Research Company⁷
Courtney R. Taylor, 38 Secretary	STEX LTEX TEBF AHIM TEFNY TEFCA	2006 2006 2006 2006 2010 2006	Assistant Vice President — Fund Business Management Group, Capital Research and Management Company

See footnotes on page 88.

American Funds Tax-Exempt Funds

Other officers⁶ (continued)

Name, age and position with fund	Year first elected an officer of the fund²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund
Karl C. Grauman, 45 Treasurer: TEBF, TEFNY, TEFCA Assistant Treasurer: STEX, LTEX, AHIM	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2012 2010 2012 2010 2010	Vice President — Fund Business Management Group, Capital Research and Management Company
Dori Laskin, 62 Treasurer: STEX, LTEX, AHIM Assistant Treasurer: TEBF, TEFNY, TEFCA	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2010 2010 2010 2010 2010	Vice President — Fund Business Management Group, Capital Research and Management Company
Steven I. Koszalka, 49 Assistant Secretary	STEX LTEX TEBF AHIM TEFNY TEFCA	2010 2010 2010 2010 2010 2010	Vice President — Fund Business Management Group, Capital Research and Management Company
Brian C. Janssen, 41 Assistant Treasurer	TEBF TEFNY TEFCA	2012 2012 2012	Vice President — Fund Business Management Group, Capital Research and Management Company

The funds’ 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) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the funds is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

STEX	American Funds Short-Term Tax-Exempt Bond Fund
LTEX	Limited Term Tax-Exempt Bond Fund of America
TEBF	The Tax-Exempt Bond Fund of America
AHIM	American High-Income Municipal Bond Fund
TEFNY	American Funds Tax-Exempt Fund of New York
TEFCA	The Tax-Exempt Fund of California

¹	The term “independent” trustee refers to a trustee who is not an “interested person” of the funds within the meaning of the Investment Company Act of 1940.
²	Includes service as a director/trustee or officer of the fund’s predecessor, The Tax-Exempt Bond Fund of America, Inc. or American High-Income Municipal Bond Fund, Inc., each a Maryland corporation, or Limited Term Tax-Exempt Bond Fund of America or The Tax-Exempt Fund of California, each a Massachusetts business trust. Trustees and officers of the funds serve until their resignation, removal or retirement.
³	Reflects funds managed by Capital Research and Management Company, including the American Funds; American Funds Insurance Series,^® which serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,^® which is available through tax-favored retirement plans and IRAs; American Funds Portfolio Series;^SM American Funds College Target Date Series;^SMand funds managed by Capital Guardian Trust Company, including Capital Emerging Markets Total Opportunities Fund^®and Capital Private Client Services Funds.^®
⁴	This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company.
⁵	“Interested persons” within the meaning of the Investment Company Act of 1940, on the basis of their current or former affiliation with the funds’ investment adviser, Capital Research and Management Company, or affiliated entities (including the funds’ principal underwriter).
⁶	All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
⁷	Company affiliated with Capital Research and Management Company.

88	American Funds Tax-Exempt Funds

Offices of the funds 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 92618-4518

One Market

Steuart Tower, Suite 2000
Mailing address: P.O. Box 7650
San Francisco, CA 94120-7650

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

Custodians of assets

Bank of New York Mellon
One Wall Street
New York, NY 10286

JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Independent registered public accounting firms

Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188

PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the funds’ prospectus and summary 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) 421-4225 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. Each 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.

Complete July 31, 2013, portfolios of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund and The Tax-Exempt Fund of California’s investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).

American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California file a complete list of their 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 Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, American Funds Tax-Exempt Fund of New York and The Tax-Exempt Fund of California, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after September 30, 2013, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

The American Funds Advantage

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital System^SM— has resulted in a superior long-term track record.

	Aligned with investor success
	We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.¹

	The Capital System^SM
	Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

	Superior long-term track record
	Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.²Our fund management fees have been among the lowest in the industry.³

	¹	Portfolio manager experience as of December 31, 2012.
	²	Based on Class A share results for rolling periods through December 31, 2012. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.
	³	Based on management fees for the 20-year period ended December 31, 2012, versus comparable Lipper categories, excluding funds of funds.

Printed on paper containing 10% post-consumer waste Printed with inks containing soy and/or vegetable oil
Lit No. MFGEARX-965-0913P Litho in USA WG/L/6376-S38370

ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-9225 or to the Secretary of the Registrant, One Market, Steuart Tower, Suite 2000, San Francisco, California 94105.

ITEM 3 – Audit Committee Financial Expert

The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.

ITEM 4 – Principal Accountant Fees and Services

Registrant:
	a) Audit Fees:
		2012	$31,000
		2013	$41,000

	b) Audit-Related Fees:
		2012	None
		2013	None

	c) Tax Fees:
		2012	$5,000
		2013	$0
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

	d) All Other Fees:
		2012	None
		2013	None

Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a) Audit Fees:
		Not Applicable

	b) Audit-Related Fees:
		2012	None
		2013	None

	c) Tax Fees:
		2012	$7,000
		2013	$24,000
		The tax fees consist of consulting services relating to the Registrant’s investments.

	d) All Other Fees:
		2012	$2,000
		2013	$2,000
		The other fees consist of subscription services related to an accounting research tool.

All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $14,000 for fiscal year 2012 and $26,000 for fiscal year 2013. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.

(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERICAN FUNDS TAX-EXEMPT FUND OF NEW YORK

	By /s/ Karl J. Zeile
	Karl J. Zeile, President and Principal Executive Officer

	Date: September 30, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ Karl J. Zeile

Karl J. Zeile, President and

Principal Executive Officer

Date: September 30, 2013

By /s/ Karl C. Grauman

Karl C. Grauman, Treasurer and

Principal Financial Officer

Date: September 30, 2013

American Funds Tax-Exempt Fund of New York Class F-1 (NYAEX) N-CSRCertified annual shareholder report (management investment company)