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, 2014

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^® The Tax-Exempt Fund of California^® American Funds Tax-Exempt Fund of New York^®

		Annual reports for the period ended July 31, 2014

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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York), 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, 2014 (the most recent calendar quarter-end) and the total annual fund operating expense ratios as of the prospectus dated October 1, 2014 (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	-1.09	%	1.05	%	1.53	%	0.58	%
Limited Term Tax-Exempt Bond Fund of America	0.91		3.91		3.42		0.60

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America	2.34		5.44		4.17		0.56
American High-Income Municipal Bond Fund	3.99		8.02		4.41		0.68
The Tax-Exempt Fund of California	3.34		6.69		4.48		0.63
American Funds Tax-Exempt Fund of New York	1.20		—		3.47		0.73

*	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.

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 expense reimbursements for American Funds Tax-Exempt Fund of New York, without which results would have been lower. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Fund of New York. This reimbursement will be in effect through at least September 30, 2014, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. 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 the lowest risk funds listed first.

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	The Tax-Exempt Fund of California

45	American Funds Tax-Exempt Fund of New York

50	Financial statements

85	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: 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York. This report covers results from August 1, 2013, through July 31, 2014, the conclusion of the funds’ fiscal year.

Municipal bond investors experienced a healthy market environment for much of the period, as tax-exempt securities rebounded from a turbulent 2013. Mixed economic news and geopolitical conflict drove renewed interest in fixed-income investments. Relatively attractive valuations for municipal bonds and a favorable supply-demand imbalance helped perpetuate the rally.

All six funds generated positive results. Total returns ranged from 1.43% for American Funds Short-Term Tax-Exempt Bond Fund to 9.99% for American High-Income Municipal Bond Fund. (See pages 4 through 16 for fund-specific results and information.)

Rebounding after a volatile 2013

At the start of the funds’ fiscal year last August, prices for most types of tax-exempt bonds were depressed, as investors fled fixed-income securities on concerns that the Federal Reserve would begin reducing its bond purchasing programs and that interest rates would gradually begin to rise. Shortly before the start of the fiscal year, the yield on the benchmark 10-year U.S. Treasury bond had reached its highest level in two years. Municipal bond investors were further unnerved by news coverage of the fiscal troubles facing Detroit and Puerto Rico.

By September, however, a turnaround in the Treasury market and attractive yields for most types of tax-exempt bonds helped trigger a rebound in the municipal market. In the early months of 2014, weather-related weakness in the U.S. economy, growing tensions in the Middle East and Ukraine, and turbulence in a number of overseas markets provided additional momentum for the broad bond market rally, as investors sought the relative safety of Treasuries and other fixed-income securities.

In general, municipal bonds delivered stronger returns than many types of taxable bonds, thanks in part to attractive valuations for tax-exempt bonds both in absolute terms and relative to Treasury securities at the beginning of the fiscal year. While returns for municipal bonds varied across the yield curve, the Barclays Municipal Bond Index, a broad measure of the investment-grade tax-exempt bond market, recorded a 7.27% gain for the fiscal year, compared with a rise of 3.97% for the Barclays U.S. Aggregate Index, a broad measure of the investment-grade taxable fixed-income market. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Attractive supply-and-demand dynamics provided an additional tailwind for the municipal market. After strong outflows through much of 2013, fund flows recovered in the latter half of the fiscal year. As demand increased, however, the supply of municipal bonds declined. For the first six months of 2014, issuance

American Funds Tax-Exempt Funds

was down 15% compared with the same period in 2013.

The fiscal problems confronting Puerto Rico continued to make headlines throughout the year. Bonds issued by Puerto Rico were among the most actively traded municipal securities in the second half of the fiscal year. Investor reaction to the Commonwealth’s challenges, including news of a potential restructuring of its public agencies, remains fluid.

In general, municipal bonds with longer maturities outpaced shorter term bonds, and lower rated securities generated better returns than those of higher quality. As interest rates declined over the period, investors gained confidence and increasingly sought opportunities for yield. In general, most of the tax-exempt bond funds covered in this report maintained relatively short duration positions, which proved to be a drag on overall returns. However, thanks to strong credit selection driven by our disciplined research effort, many of the funds kept pace with the market rally.

Looking forward

U.S. economic activity continues to accelerate, albeit at a modest pace. As growth continues to pick up, inflation is also likely to increase. Given these circumstances, and with the Fed winding down its asset purchase program, we expect interest rates to rise and feel it is likely there will be periods of uncertainty with regard to their future path. In such an environment, bond returns may be muted.

However, periods of rising interest rates provide opportunities to reinvest proceeds from bonds reaching maturity into less expensive bonds at higher yields and therefore higher tax-exempt income. Furthermore, the fiscal and economic outlook for many states and municipalities has improved substantially in recent months. While we maintain a conservative approach to the market, we are continuing to find opportunities to invest in bonds with attractive valuations that offer solid tax-exempt income. As always, we seek to maintain a careful balance between risk and potential return in the funds’ holdings.

We are grateful you have chosen to invest with 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, 2014

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, 2014. 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

	SEC		Equivalent		12-month
Class A shares	30-day yield		taxable yield		distribution rate
Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund	0.21	%	0.37	%	1.00	%
Limited Term Tax-Exempt Bond Fund of America	0.73		1.29		2.42

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America	2.07		3.66		3.30
American High-Income Municipal Bond Fund	3.32		5.87		4.18
The Tax-Exempt Fund of California	2.12		4.32	²	3.41
American Funds Tax-Exempt Fund of New York	2.05		4.15	³	2.82

¹	Based on 2014 federal tax rates. For the year 2014, 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 50.93% federal and California state tax bracket.
³	For investors in the 50.59% federal, New York state and New York City 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. 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. The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York 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 1.43% total return for the fiscal year, exceeding the 1.16% gain of the Lipper Short Municipal Debt Funds Average, a peer group measure. The Barclays Municipal Short 1–5 Years Index recorded a 1.98% total return. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

For the 12 months ended July 31, 2014, the fund paid monthly dividends totaling about 11 cents a share. This amounts to a federally tax-exempt income return of 1.04% for those who reinvested dividends. This is equivalent to a taxable income return of 1.84% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

While returns in the municipal bond market were positive overall, securities at the shorter end of the maturity spectrum — where the fund invests — tended to lag the broader market. Yields for shorter term bonds remain quite low, in part due to the Federal Reserve’s accommodative policies. The fund’s focus is first and foremost on protecting investor capital, which fund managers recognize as a top priority for most investors. At the close of the period, the largest concentrations in the portfolio included revenue bonds supporting hospital facilities (9.52%), airports (9.51%) and single-family housing (9.16%).

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 1.01% tax-exempt distribution rate³as of July 31, 2014.

If your taxable income is ...						... then your federal			The fund’s tax-exempt distribution rate of 1.01% is
Single			Joint			tax rate is ...			equivalent to a taxable rate of ...
$	0 –	9,075	$	0 –	18,150		10.0	%		1.12	%
	9,076 –	36,900		18,151 –	73,800		15.0			1.19
	36,901 –	89,350		73,801 –	148,850		25.0			1.35
	89,351 –	186,350		148,851 –	226,850		28.0			1.40
	186,351 –	405,100		226,851 –	405,100		36.8	¹		1.60
	405,101 –	406,750		405,101 –	457,600		38.8	¹		1.65
	Over 406,750			Over 457,600			43.4	¹		1.78

¹	For the year 2014, 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 2014 federal tax rates. 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.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2014. 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. Investors cannot invest directly in an index.
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, 2014*

	1 year			5 years			10 years

Class A shares		-1.09	%		1.07	%		1.53	%

*	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.

Portfolio quality summary*

Percent of net assets

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and Fitch. 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

Limited Term Tax-Exempt Bond Fund of America

The fund produced a 3.56% gain, which slightly trailed the 3.75% total return of the Barclays Municipal Short-Intermediate 1–10 Years Index. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The fund’s total return also fell short of the 5.30% total return of the Lipper Intermediate Municipal Debt Funds Average, a peer group measure.

The fund paid monthly dividends totaling about 40 cents a share for the fiscal year, which represents a federally tax-exempt income return of 2.55% for those who reinvested dividends. This is equivalent to a taxable income return of 4.51% for investors in the 43.4%¹maximum federal tax bracket.

During the 12-month period, the fund’s returns were limited due in part to an unexpected decline in already low interest rates and tightening of credit spreads. These conditions proved to be somewhat challenging for the fund, which focuses chiefly on investment-grade bonds (those rated BBB/Baa and above) with maturities ranging from a few years to 10 years. Nevertheless, the fund delivered a solid gain while continuing to focus on preserving investor principal and generating reasonable income. The fund’s largest concentrations at the end of the fiscal year included revenue bonds supporting critical local enterprises, including airports (14.0%) and hospital facilities (11.3%).

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 2.43% tax-exempt distribution rate³as of July 31, 2014.

If your taxable income is ...						... then your federal			The fund’s tax-exempt distribution rate of 2.43% is
Single			Joint			tax rate is ...			equivalent to a taxable rate of ...
$	0 –	9,075	$	0 –	18,150		10.0	%		2.70	%
	9,076 –	36,900		18,151 –	73,800		15.0			2.86
	36,901 –	89,350		73,801 –	148,850		25.0			3.24
	89,351 –	186,350		148,851 –	226,850		28.0			3.38
	186,351 –	405,100		226,851 –	405,100		36.8	¹		3.84
	405,101 –	406,750		405,101 –	457,600		38.8	¹		3.97
	Over 406,750			Over 457,600			43.4	¹		4.29

¹	For the year 2014, 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 2014 federal tax rates. 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.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2014. 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 $9,750.²Results 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.

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 maximum initial sales charge was 3.75% until October 31, 2006.
³	The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

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, 2014*

	1 year			5 years			10 years

Class A shares		0.97	%		3.56	%		3.36	%

*	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.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

The fund advanced 7.60% for the fiscal year, outpacing the 7.27% total return of the Barclays Municipal Bond Index. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

By way of comparison, the Lipper General & Insured Municipal Debt Funds Average, a measure of the fund’s peer group, recorded a 7.67% total return.

For the 12 months, the fund paid monthly dividends totaling nearly 45 cents a share, amounting to a federally tax-exempt income return of 3.65% for those who reinvested dividends. This is equivalent to a taxable income return of 6.45% for investors in the 43.4%¹maximum federal tax bracket. The fund does not invest in bonds subject to the Alternative Minimum Tax (AMT).

Continuing with a fairly conservative approach to the market that we have discussed in recent reports, the fund focused on relatively shorter duration securities throughout the year. This approach proved to be slightly unfavorable in a period when longer maturities and lower rated securities generally outgained shorter term securities. However, efforts by the fund’s managers to seek out yield opportunities through strong credit research proved rewarding and the fund outpaced the overall market. Holdings of revenue bonds supporting hospital facilities and toll roads — among the fund’s largest concentrations — generated some of the strongest gains for the fund.

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 3.33% tax-exempt distribution rate³as of July 31, 2014.

If your taxable income is ...						... then your federal			The fund’s tax-exempt distribution rate of 3.33% is
Single			Joint			tax rate is ...			equivalent to a taxable rate of ...
$	0 –	9,075	$	0 –	18,150		10.0	%		3.70	%
	9,076 –	36,900		18,151 –	73,800		15.0			3.92
	36,901 –	89,350		73,801 –	148,850		25.0			4.44
	89,351 –	186,350		148,851 –	226,850		28.0			4.63
	186,351 –	405,100		226,851 –	405,100		36.8	¹		5.27
	405,101 –	406,750		405,101 –	457,600		38.8	¹		5.44
	Over 406,750			Over 457,600			43.4	¹		5.88

¹	For the year 2014, 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 2014 federal tax rates. 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.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2014. 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. Investors cannot invest directly in an index.

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, 2014*

	1 year	5 years	10 years

Class A shares	3.60%	5.17%	4.09%

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

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

The fund produced an outstanding 9.99% total return for the fiscal year, exceeding both the 6.84% gain of the Barclays High Yield Municipal Bond Index and the 7.27% return of the Barclays Municipal Bond Index, a measure of the investment-grade market. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. The fund also bested the 9.10% total return of the Lipper High-Yield Municipal Debt Funds Average, a peer group measure.

While we are pleased with the fund’s return, we remind readers that we take a long-term view of investing. You can find results for longer time frames on page 16. That said, we are gratified that our research-driven approach has helped the fund produce favorable relative results in the recently concluded fiscal year — a strong period for lower rated bonds — and that it also outpaced the Barclays Municipal Bond Index for the 12-month period ended July 31, 2013, which was a particularly challenging period for high-yield municipal securities.

For the 12 months ended July 31, 2014, the fund paid monthly dividends totaling about 67 cents a share, amounting to a federally tax-exempt income return of 4.71% for investors who reinvested dividends. This is equivalent to a taxable income return of 8.32% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

The fund received positive contributions from a number of bonds representing a variety of sectors and geographies. Investments in revenue bonds backing senior living facilities and tax-exempt corporate bonds produced some of the strongest gains of the period.

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, 2014.

									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 –	9,075	$	0 –	18,150		10.0	%		4.69	%
	9,076 –	36,900		18,151 –	73,800		15.0			4.96
	36,901 –	89,350		73,801 –	148,850		25.0			5.63
	89,351 –	186,350		148,851 –	226,850		28.0			5.86
	186,351 –	405,100		226,851 –	405,100		36.8	¹		6.68
	405,101 –	406,750		405,101 –	457,600		38.8	¹		6.90
	Over 406,750			Over 457,600			43.4	¹		7.46

¹	For the year 2014, 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 2014 federal tax rates. 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.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2014. 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. Investors cannot invest directly in an index.

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, 2014*

	1 year	5 years	10 years

Class A shares	5.89%	7.76%	4.34%

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

Portfolio quality summary*

Percent of net assets

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and Fitch. 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

The Tax-Exempt Fund of California

The fund generated an 8.72% total return, a result that lagged the 9.04% gain of the Barclays California Municipal Index. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. The fund also trailed the 9.27% total return recorded by the Lipper California Municipal Debt Funds Average, a peer group measure.

The fund paid monthly dividends totaling about 63 cents a share for the 12-month period. Those investors who reinvested dividends received an income return of 3.83%. This is equivalent to a taxable income return of 7.81% for investors in the 50.93% effective combined federal and California tax bracket.

With the state economy improving and tax revenues rising, California is starting the current fiscal year in solid shape. The state’s planned budget for the current year features increases for education, pays down debt, and proposes a 32-year plan to fully fund the teachers’ pension system. These conditions have proved to be tailwinds for the state’s municipal bond market, which has seen spreads tighten across the credit spectrum. A reduced supply of bonds also has been supportive of returns.

The fund had a small concentration of holdings issued by Puerto Rico issuers (1.85%), which offer triple-tax-exempt status to investors. Select holdings in this area detracted from the fund’s overall positive result during the period.

Tax-exempt yields vs. taxable yields

Find your estimated 2014 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 3.46% tax-exempt distribution rate^†at July 31, 2014.

						... then your combined			The fund’s tax-exempt
If your taxable income is …						federal and California			distribution rate of 3.46% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of ...
$	0 –	7,749	$	0 –	15,498		10.90	%		3.88	%
	7,750 –	9,075		15,499 –	18,150		11.80			3.92
	9,076 –	18,371		18,151 –	36,742		16.70			4.15
	18,372 –	28,995		36,743 –	57,990		18.40			4.24
	28,996 –	36,900		57,991 –	73,800		20.10			4.33
	36,901 –	40,250		73,801 –	80,500		29.50			4.91
	40,251 –	50,869		80,501 –	101,738		31.00			5.01
	50,870 –	89,350		101,739 –	148,850		31.98			5.09
	89,351 –	186,350		148,851 –	226,850		34.70			5.30
	186,351 –	259,844		226,851 –	405,100		42.68			6.04
	259,845 –	311,812		–			43.31			6.10
	311,813 –	405,100		–			43.94			6.17
	–			405,101 –	457,600		44.49			6.23
	405,101 –	406,750		–			45.72			6.37
	–			457,601 –	519,688		48.66			6.74
	–			519,689 –	623,624		49.23			6.82
	406,751 –	519,687		623,625 –	1,000,000		49.80			6.89
	519,688 –	1,000,000		1,000,001 –	1,039,374		50.36			6.97
	Over 1,000,000			Over 1,039,374			50.93			7.05

*	Based on 2014 federal and 2014 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, 2014. Capital gains 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.¹ Thus, 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.

12	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. Investors cannot invest directly in an index.

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, 2014*

	1 year	5 years	10 years

Class A shares	4.65%	6.45%	4.38%

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

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

The fund produced a 6.83% total return. That result lagged the 7.47% gain of the Barclays New York Municipal Index. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. The fund also trailed the 7.01% total return of the Lipper New York Municipal Debt Funds Average, a measure of its peer group. However, as you can see in the table on page 16, the fund has continued to outpace its benchmarks over its lifetime.

For the year, the fund paid monthly dividends totaling about 31 cents a share. This represents an income return of 3.12% 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 6.31%.

Generally speaking, the New York municipal bond market — which tends to be relatively higher quality — trails the broad market during periods when lower rated and longer duration bonds excel. However, over the past 12 months, the New York municipal bond market outpaced the broader national tax-exempt bond market due in part to strong demand for New York state tax-exempt bonds and improved credit quality among the larger issuers in the state. A wide variety of revenue bonds — including securities backing higher education facilities and hospitals - contributed to the fund’s overall positive return.

Tax-exempt yields vs. taxable yields

Find your estimated 2014 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 2.86% tax-exempt distribution rate³at July 31, 2014.

						... then your combined			The fund’s tax-exempt
If your taxable income is …						federal and New York			distribution rate of 2.86% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of ...
$	0 –	8,300	$	0 –	16,700		13.60	%		3.31	%
	8,301 –	9,075		16,701 –	18,150		14.05			3.33
	9,076 –	11,450		18,151 –	22,950		18.83			3.52
	11,451 –	13,550		22,951 –	27,150		19.46			3.55
	13,551 –	20,850		27,151 –	41,800		20.02			3.58
	20,851 –	36,900		41,801 –	73,800		20.48			3.60
	36,901 –	78,400		73,801 –	148,850		29.84			4.08
	78,401 –	89,350		–			29.99			4.09
	–			148,851 –	156,900		32.64			4.25
	89,351 –	186,350		156,901 –	226,850		32.79			4.26
	186,351 –	209,250		226,851 –	313,850		41.00			4.85
	209,251 –	405,100		313,851 –	405,100		41.13			4.86
	405,101 –	406,750		405,101 –	457,600		42.99			5.02
	406,751 –	1,046,350		457,601 –	2,092,800		47.28			5.42
	Over 1,046,350			Over 2,092,800			48.39			5.54

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 2014 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, 2014. Capital gain 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

(for the period November 1, 2010, to July 31, 2014, 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. Investors cannot invest directly in an index.

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, 2014*

		Lifetime
	1 year	(since 11/1/10)

Class A shares	2.80%	3.48%

*	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. The investment adviser is currently reimbursing a portion of other expenses. This reimbursement will be in effect through at least September 30, 2014, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Visit americanfunds.com for more information.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

Results at a glance

For periods ended July 31, 2014, 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)		1.43	%		—	%		—	%		1.67	%
Barclays Municipal Short 1-5 Years Index^2,3		1.98			—			—			2.20
Lipper Short Municipal Debt Funds Average		1.16			—			—			1.56

Limited Term Tax-Exempt Bond Fund of America (Class A shares)		3.56			4.09			3.62			4.32
Barclays Municipal Short-Intermediate 1-10 Years Index^2,4		3.75			3.53			3.92			4.52
Lipper Intermediate Municipal Debt Funds Average		5.30			4.38			3.73			4.51

The Tax-Exempt Bond Fund of America (Class A shares)		7.60			5.97			4.49			6.76
Barclays Municipal Bond Index²		7.27			5.50			4.85			—	⁵
Lipper General & Insured Municipal Debt Funds Average		7.67			5.84			4.12			6.70

American High-Income Municipal Bond Fund (Class A shares)		9.99			8.58			4.74			5.66
Barclays Municipal Bond Index²		7.27			5.50			4.85			5.72
Barclays High Yield Municipal Bond Index²		6.84			9.93			5.63			—	⁵
Lipper High-Yield Municipal Debt Funds Average		9.10			8.24			4.30			5.09

The Tax-Exempt Fund of California (Class A shares)		8.72			7.26			4.78			5.79
Barclays California Municipal Index²		9.04			6.52			5.20			—	⁵
Lipper California Municipal Debt Funds Average		9.27			6.80			4.46			5.74

American Funds Tax-Exempt Fund of New York (Class A shares)		6.83			—			—			4.54
Barclays New York Municipal Index²		7.47			—			—			4.18
Lipper New York Municipal Debt Funds Average		7.01			—			—			3.64

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), 10/28/86 (The Tax-Exempt Fund of California) and 11/1/10 (American Funds Tax-Exempt Fund of New York).
²	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
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, 2014

Bonds, notes & other debt instruments 85.15%	Principal amount (000)		Value (000)
California 7.81%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.96% 2045 (put 2023)¹	$	6,600	$	6,522
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		2,987
Various Purpose G.O. Ref. Bonds, 5.00% 2018		3,000		3,453
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-B, 5.00% 2015		1,000		1,044
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-C, 5.00% 2034 (put 2014)		4,500		4,546
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-B, 5.00% 2043 (put 2017)		1,145		1,299
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-D, 5.00% 2043 (put 2020)		1,500		1,769
Los Angeles County Metropolitan Transportation Auth., Proposition A, Sales Tax Rev. Ref. Bonds, Series 2013-A, 5.00% 2018		3,000		3,494
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 4.00% 2018		2,500		2,767
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2017		2,510		2,821
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2018		1,085		1,244
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2019		1,000		1,163
Other securities				29,180
				62,289

Colorado 1.14%
Dept. of Transportation, Transportation Rev. Ref. Anticipation Notes, 5.00% 2016		5,000		5,545
Other securities				3,516
				9,061

Florida 8.14%
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2017		1,000		1,119
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2019		6,450		7,482
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2015 (escrowed to maturity)		4,000		4,176
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2016 (escrowed to maturity)		5,295		5,768
City of Lakeland, Energy System Rev. Ref. Bonds, Series 2012, 0.81% 20171		3,800		3,806
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2005-B, AMT, Assured Guaranty Municipal insured, 5.00% 2016		3,000		3,162
State Board of Education, Public Education Capital Outlay Ref. Bonds, Series 2009-B, 5.00% 2015		3,000		3,122
City of Tampa, Utility Tax Rev. Ref. Bonds, National insured, 5.00% 2015		3,615		3,818
Other securities				32,424
				64,877

Georgia 2.82%
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds (Third Indenture Series), Series 2014-A, 0.36% 2025 (put 2017)¹		5,250		5,248
Other securities				17,224
				22,472

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Illinois 5.83%
Build Bonds (Sales Tax Rev. Bonds), Series June 2013, 5.00% 2020	$	3,500	$	4,127
Educational Facs. Auth. Rev. Bonds (University of Chicago), Series 1998-B, 1.65% 2025 (put 2019)		10,390		10,433
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 2001-B-1, 1.10% 2036 (put 2018)		1,250		1,250
Unemployment Insurance Fund Building Receipts Rev. Bonds (Illinois Dept. of Employment Security), Series 2012-A, 5.00% 2016		4,000		4,437
Other securities				26,229
				46,476

Maryland 0.93%
Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. Bonds, Series 2014-B, AMT, 3.25% 2044		3,595		3,769
Other securities				3,667
				7,436

Massachusetts 3.95%
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System), Series 2014-M-3, 0.61% 2038 (put 2018)¹		6,075		6,070
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2014-I, AMT, 5.00% 2021		3,000		3,384
Other securities				22,033
				31,487

Michigan 4.24%
Kent Hospital Fin. Auth., Rev. Ref. Bonds (Spectrum Health System), Series 2008-A, 5.50% 2047 (put 2015)		5,000		5,120
Regents of the University of Michigan, General Rev. Ref. Bonds, Series 2012-F, 0.46% 2043 (put 2016)¹		3,000		3,004
Other securities				25,699
				33,823

Missouri 1.17%
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		5,392
Other securities				3,972
				9,364

Nebraska 0.99%
Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2014-A, 3.00% 2044		3,000		3,161
Other securities				4,763
				7,924

18	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount (000)		Value (000)
New Jersey 4.10%
Econ. Dev. Auth., School Facs. Construction Bonds, Assured Guaranty Municipal insured, Subseries J-5, 5.00% 2029 (preref. 2015)	$	2,000	$	2,104
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2010-DD-1, 5.00% 2016		1,500		1,650
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2014-PP, 5.00% 2019		4,000		4,554
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2010-2, 5.00% 2014		2,000		2,032
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 4.00% 2017		3,500		3,815
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 5.00% 2018		2,000		2,276
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 4.00% 2017		1,750		1,908
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 5.00% 2016		1,000		1,097
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 5.00% 2018		2,250		2,561
Other securities				10,683
				32,680

New Mexico 0.76%
Educational Assistance Foundation, Education Loan Rev. Ref. Bonds, Series 2009-C, AMT, 3.90% 2014		3,000		3,008
Other securities				3,015
				6,023

New York 9.99%
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.61% 2025¹		5,000		4,996
City of New York, G.O. Bonds, Fiscal 2010 Series C, 5.00% 2014		1,000		1,000
City of New York, G.O. Bonds, Fiscal 2010 Series C, 5.00% 2015		1,000		1,049
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2015		1,000		1,049
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2015		1,000		1,049
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2017		1,000		1,129
City of New York, G.O. Bonds, Fiscal 2012 Series I, 5.00% 2018		1,000		1,155
City of New York, G.O. Bonds, Fiscal 2014 Series A-6, 0.56% 2031¹		2,500		2,471
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2017		3,000		3,320
Thruway Auth., General Rev. Junior Indebtedness Obligations Series 2013-A, 5.00% 2019		4,700		5,450
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2020		2,900		3,140
Other securities				53,862
				79,670

North Dakota 0.55%
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2012-A, 3.75% 2042		3,440		3,740
Other securities				678
				4,418

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Ohio 2.25%
City of Cleveland, Airport System Rev. Ref. Bonds, Series 2011-A, Assured Guaranty Municipal insured, 5.00% 2016	$	4,500	$	4,784
Other securities				13,129
				17,913

Oregon 1.40%
Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2013-C, 1.06% 2022 (put 2018)¹		3,000		3,013
Other securities				8,166
				11,179

Pennsylvania 1.86%
Econ. Dev. Fncg. Auth., Unemployment Compensation Rev. Bonds, Series 2012-B, 5.00% 2021		4,000		4,528
Other securities				10,292
				14,820

Rhode Island 0.61%
Health and Educational Building Corp.,
Hospital Fncg. Rev. Ref. Bonds (Lifespan Obligated Group Issue), Series 2006-A, Assured Guaranty Municipal insured, 5.00% 2016		3,000		3,210
Other securities				1,633
				4,843

Tennessee 2.21%
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-1-C, 4.50% 2037		1,255		1,401
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-2-C, 4.00% 2038		895		983
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2011-1-A, AMT, 4.50% 2031		2,215		2,381
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2012-1-A, AMT, 4.50% 2038		1,055		1,135
Housing Dev. Agcy., Residential Fin. Program Bonds, Issue 2013-1-C, 3.00% 2038		1,845		1,948
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043		970		1,036
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-1-A, AMT, 4.00% 2039		2,000		2,166
Memphis-Shelby County Airport Auth., Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.00% 2016		3,220		3,485
Other securities				3,078
				17,613

Texas 6.24%
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Ref. Bond
Anticipation Notes, Series 2014-A, 3.00% 2016		8,150		8,630
Houston Independent School Dist. (Harris County), Limited Tax Schoolhouse Bonds, Series 2013-B, 2.00% 2037 (put 2016)		3,400		3,497
Other securities				37,615
				49,742

20	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount (000)		Value (000)
Vermont 0.41%
Student Assistance Corp., Education Loan Rev. Notes, Series 2012-B, AMT, 1.732% 2022¹	$	3,271	$	3,277

Virginia 0.72%
Commonwealth Transportation Board, Federal Transportation Grant Anticipation Rev. Notes, Series 2013-A, 5.00% 2020		3,000		3,553
Other securities				2,224
				5,777

Washington 3.19%
Energy Northwest, Electric Rev. Ref. Bonds (Project 1), Series 2012-A, 5.00% 2017		5,000		5,641
Other securities				19,813
				25,454
Other states & U.S. territories 13.84%
Other securities				110,297
Total bonds, notes & other debt instruments (cost: $668,562,000)				678,915

Short-term securities 15.57%

State of Arizona, Maricopa County, Pollution Control Corp., Pollution Control Rev. Ref. Bonds (Arizona Public Service Co. Palo Verde Project), Series 2009-B, JPMorgan Chase LOC, 0.07% 2029¹		7,500		7,500
State of California, Infrastructure and Econ. Dev. Bank, Demand Rev. Bonds (Buck Institute for Age Research) Series 2001, U.S. Bank LOC, 0.05% 2037¹		12,000		12,000
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2014-A, 1.50% 6/26/2015		19,000		19,239
State of Louisiana, Industrial Dev. Board of the Parish of East Baton Rouge, Inc., Gulf Opportunity Zone Rev. Bonds (ExxonMobil Project), Series 2010-B, 0.05% 2040¹		3,350		3,350
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2000, AMT, 0.06% 2030¹		1,700		1,700
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001-B, AMT, 0.06% 2025¹		4,200		4,200
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp. Rev. Bonds (ExxonMobil Project), Series 2011, 0.04% 20381		8,000		8,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 0.05% 2030¹		2,100		2,100
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-B, 0.05% 2030¹		1,000		1,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-K, 0.05% 2035¹		2,700		2,700

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Short-term securities (continued)	Principal amount (000)		Value (000)
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-A, 0.04% 2035¹	$	6,445	$	6,445
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-D, 0.04% 2030¹		5,300		5,300
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 2003-B, 0.05% 2033¹		3,550		3,550
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 2004-A, 0.05% 2034¹		1,745		1,745
State of New York, City of New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.06% 2038¹		2,000		2,000
State of New York, City of New York, G.O. Bonds, Fiscal 2012 Series G, Subseries G-5, 0.04% 2042¹		2,300		2,300
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2014-A, 2.00% 6/15/2015		4,950		5,031
State of Texas, Tax and Rev. Anticipation Notes, Series 2013, 2.00% 8/28/2014		20,000		20,029
Other securities				15,940

Total short-term securities (cost: $124,125,000)				124,129
Total investment securities 100.72% (cost: $792,687,000)				803,044
Other assets less liabilities (0.72)%				(5,770	)

Net assets 100.00%			$	797,274

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See page 88 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, 2014

Bonds, notes & other debt instruments 91.02%	Principal amount (000)		Value (000)
California 11.91%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.96% 2045 (put 2023)¹	$	20,500	$	20,259
Econ. Recovery Bonds, Ref. Series 2009-A, 5.00% 2020		9,000		10,645
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-D, 5.00% 2034 (put 2016)		7,500		8,231
City of Long Beach, Harbor Rev. Ref. Bonds, Series 1998-A, AMT, FGIC-National insured, 6.00% 2016		8,430		9,267
Los Angeles Unified School Dist. (County of Los Angeles), G.O. Ref. Bonds, Series 2011-A-1, 5.00% 2018		7,010		8,139
Port of Oakland, Rev. Ref. Bonds, Series 2012-P, AMT, 5.00% 2021		7,750		9,109
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		8,989
Public Facs. Fncg. Auth. of the City of San Diego, Sewer Rev. Bonds, Series 2009-A, 5.00% 2017		8,500		9,585
City of San Jose, Airport Rev. Bonds, Series 2007-A, AMT, AMBAC insured, 5.50% 2020		7,820		8,607
Other securities				273,620
				366,451

Connecticut 0.46%
Special Tax Obligation Ref. Bonds, Transportation Infrastructure Purposes, Series 2009-1, 5.00% 2019		8,550		9,936
Other securities				4,344
				14,280

District of Columbia 1.22%
University Rev. Bonds (Georgetown University Issue), Series 2001-B, 4.70% 2031 (put 2018)		8,500		9,428
Other securities				28,194
				37,622

Florida 9.74%
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2018		2,000		2,285
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2019		5,000		5,800
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 5.50% 2017		10,035		11,371
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.00% 2015		5,500		5,722
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2010-A-1, 5.25% 2017		5,850		6,588
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2022		10,200		12,027
Jacksonville Aviation Auth., Rev. Bonds, Series 2006, AMT, AMBAC insured, 5.00% 2018		7,585		8,268
Miami-Dade County, Aviation Rev. Bonds, Series 2010-A, 5.00% 2021		2,250		2,599
Miami-Dade County, Aviation Rev. Ref. Bonds, AMT, 5.00% 2023		945		1,095
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2020		5,750		6,718
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2021		11,600		13,554
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		2,277
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2005-B, AMT, XLC Ainsured, 5.00% 2018		1,000		1,052
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-A, 5.75% 2022		1,500		1,790

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Florida (continued)
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.50% 2018	$	3,580	$	4,206
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.75% 2021		2,000		2,404
Putnam County Dev. Auth., Pollution Control Rev. Ref. Bonds (Seminole Electric Cooperative, Inc. Project), Series 2007-B, AMBAC insured, 5.35% 2042 (put 2018)		10,370		11,814
Other securities				200,036
				299,606

Georgia 2.71%
DeKalb County Hospital Auth., Rev. Ref. Anticipation Certificates (DeKalb Medical Center, Inc. Project), Series 2010, 5.25% 2020		8,750		9,766
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		16,000		18,830
Public Gas Partners, Inc., Gas Project Rev. Ref. Bonds (Gas Supply Pool No.1), Series A, 5.00% 2018		10,930		12,431
Other securities				42,177
				83,204

Hawaii 0.82%
Airports System Rev. Bonds, Series 2010-B, AMT, 5.00% 2018		9,900		11,329
Other securities				13,783
				25,112

Illinois 7.98%
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2017		1,500		1,658
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2019		2,785		3,217
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2012-B, AMT, 5.00% 2024		2,000		2,237
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2013-A, AMT, 5.00% 2022		3,055		3,546
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2005-B, FGIC-National insured, 5.25% 2015		1,500		1,532
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2005-B, National insured, 5.25% 2016		1,000		1,069
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2008-A, Assured Guaranty Municipal insured, 5.00% 2019		2,000		2,242
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2025		6,170		6,827
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2021		10,000		11,566
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2023		5,000		5,749
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2018		2,000		2,260
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2019		2,000		2,288
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2013-B, AMT, 5.00% 2022		3,000		3,482
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		9,023
Fin. Auth., Rev. Ref. Bonds (University of Chicago Medical Center), Series 2009-A, 5.00% 2018		7,500		8,640
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.125% 2019		6,500		7,514
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.25% 2020		6,500		7,607

24	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount		Value
	(000)		(000)
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.375% 2021	$	1,000	$	1,183
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.50% 2023		12,425		14,475
State Toll Highway Auth., Toll Highway Priority Rev. Ref. Bonds, Series 1998-A, Assured Guaranty Municipal insured, 5.50% 2015		9,825		10,045
Other securities				139,200
				245,360

Indiana 3.16%
Fin. Auth., Private Activity Bonds (Ohio River Bridges East End Crossing Project), Series 2013-B, AMT, 5.00% 2019		10,440		11,267
Indianapolis Airport Auth., Special Fac. Rev. Ref. Bonds (Federal Express Corp. Project), Series 2004, AMT, 5.10% 2017		20,545		22,593
Indianapolis Local Public Improvement Bond Bank Bonds (Indianapolis Airport Auth. Project), Series 2006-F, AMT, AMBAC insured, 5.00% 2022		7,500		8,055
Other securities				55,247
				97,162

Kentucky 1.32%
Public Transportation Infrastructure Auth., Toll Rev. Bond Anticipation Notes (Downtown Crossing Project), Series 2013-A, 5.00% 2017		8,625		9,600
Other securities				31,067
				40,667

Louisiana 1.68%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-Backed Ref. Bonds, Series 2013-A, 5.00% 2022		8,235		9,383
Other securities				42,175
				51,558

Maryland 0.65%
Transportation Auth., Airport Parking Rev. Ref. Bonds (Baltimore/Washington International
Thurgood Marshall Airport Projects), Series 2012-B, AMT, 5.00% 2020		8,150		9,378
Other securities				10,458
				19,836

Michigan 4.27%
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.25% 2016		3,000		3,175
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, FGIC-National insured, 5.00% 2018		1,000		1,112
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2008-A, AMT, Assured Guaranty insured, 5.25% 2018		1,465		1,587
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2017		1,615		1,809
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2018		3,590		4,070
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2019		1,000		1,145
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		10,000		11,507
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2021		8,240		9,480
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-B, 5.00% 2019		1,000		1,148
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2019		3,560		4,077
Other securities				92,093
				131,203

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Nevada 2.12%
Clark County, Highway Rev. (Motor Vehicle Fuel Tax) Ref. Bonds, Series 2011, 5.00% 2020	$	12,320	$	14,557
Las Vegas Valley Water Dist., G.O. (Limited Tax) Ref. Bonds, Series 2011-C, 5.00% 2019		7,760		9,059
Other securities				41,725
				65,341

New Jersey 2.60%
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014 (escrowed to maturity)		8,000		8,050
Other securities				71,856
				79,906

New York 8.85%
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.61% 2025¹		6,325		6,320
City of New York, G.O. Bonds, Fiscal 2009 Series H-1, 5.00% 2016		2,000		2,151
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2015		3,500		3,671
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2017		5,000		5,647
City of New York, G.O. Bonds, Fiscal 2012 Series I, 5.00% 2020		5,000		5,914
City of New York, G.O. Bonds, Series 2013-E, 5.25% 2022		5,000		6,063
City of New York, G.O. Bonds, Series 2014-G, 5.00% 2023		1,500		1,802
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2024		5,000		6,010
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2003-B, FGIC-National insured, 5.25% 2020		5,500		6,607
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018		8,500		9,298
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-A2, 0.33% 2041 (put 2016)¹		1,000		1,000
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2020		3,250		3,856
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2021		3,470		3,888
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-G-1H, 0.952% 2026 (put 2016)¹		2,650		2,681
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2011-C, 5.00% 2018		1,105		1,286
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2020		7,000		8,306
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-F, 5.00% 2021		1,000		1,192
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2014-A-2, 5.00% 2028		3,000		3,453
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2017		10,000		11,171
Other securities				181,904
				272,220

South Carolina 0.65%
Transportation Infrastructure Bank, Rev. Ref. Bonds, Series 2005-A, AMBAC insured, 5.25% 2018		8,000		9,356
Other securities				10,766
				20,122

26	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
Texas 7.94%
G.O. Bonds, College Student Loan Bonds, Series 2011-A, AMT, 5.00% 2019	$	1,700	$	1,996
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2019		1,000		1,161
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2020		3,640		4,170
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2020 (preref. 2018)		360		414
City of Houston, Airport System Rev. Ref. Bonds, Series 2011-A, AMT, 5.00% 2019		10,000		11,594
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		9,850		10,523
Other securities				214,522
				244,380

Wisconsin 1.31%
Health and Educational Facs. Auth., Rev. Ref. Bonds (Aurora Health Care, Inc.), Series 2012-A, 5.00% 2021		7,765		8,775
Other securities				31,625
				40,400

Other states & U.S. territories 21.63%
Other securities				665,545
Total bonds, notes & other debt instruments (cost: $2,647,273,000)				2,799,975

Short-term securities 8.64%
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-B, 0.05% 2033¹		3,600		3,600
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (ExxonMobil Project), Series 2001, 0.05% 2029¹		5,300		5,300
State of Louisiana, Industrial Dev. Board of the Parish of East Baton Rouge, Inc., Gulf Opportunity Zone Rev. Bonds (ExxonMobil Project), Series 2010-B, 0.05% 2040¹		5,000		5,000
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobil Project), Series 2010-A, 0.05% 2035¹		3,700		3,700
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2000, AMT, 0.06% 2030¹		1,100		1,100
State of Wyoming, Lincoln County, Pollution Control Rev. Bonds (Exxon Project), Series 1984-C, 0.05% 11/1/2014¹		4,800		4,800
State of California, Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-C, JPMorgan Chase LOC, 0.04% 2026¹		9,900		9,900
State of California, Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-E, JPMorgan Chase LOC, 0.04% 2026¹		16,300		16,300
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2014-A, 1.50% 6/26/2015		25,000		25,314
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030¹		4,000		4,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.05% 2030¹		1,700		1,700
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-E, 0.05% 2030¹		3,000		3,000

American Funds Tax-Exempt Funds

��

Limited Term Tax-Exempt Bond Fund of America

Short-term securities (continued)	Principal amount (000)		Value (000)
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-G, 0.04% 2030¹	$	1,200	$	1,200
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.04% 2035¹		6,840		6,840
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-I, 0.04% 2035¹		1,300		1,300
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-K, 0.05% 2035¹		3,000		3,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-F, 0.05% 2035¹		2,745		2,745
State of Mississippi, Jackson County, Port Fac. Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2023¹		3,900		3,900
State of Wyoming, Uinta County, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2020¹		3,300		3,300
State of New York, City of New York, G.O. Bonds, Fiscal 1994 Series E-2, 0.06% 2020¹		3,000		3,000
State of New York, City of New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.06% 2038¹		10,800		10,800
State of New York, City of New York, G.O. Bonds, Fiscal 2012 Series G, Subseries G-5, 0.04% 2042¹		1,800		1,800
State of North Carolina, Charlotte-Mecklenburg Hospital Auth., Carolinas HealthCare System, Health Care Rev. Ref. Bonds, Series 2007-B, Wells Fargo Bank LOC, 0.04% 2045¹		13,695		13,695
State of Texas, Tax and Rev. Anticipation Notes, Series 2013, 2.00% 8/28/2014		75,000		75,111
Other securities				55,301

Total short-term securities (cost: $265,694,000)				265,706
Total investment securities 99.66% (cost: $2,912,967,000)				3,065,681
Other assets less liabilities 0.34%				10,545

Net assets 100.00%			$	3,076,226

“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 $12,242,000, which represented .40% 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, 2014

Bonds, notes & other debt instruments 89.87%	Principal amount (000)		Value (000)
Arizona 2.99%
Health Facs. Auth., Rev. Bonds (Banner Health), Series 2007-B, 0.967% 2037¹	$	22,200	$	19,279
Other securities				259,770
				279,049

California 11.57%
Econ. Recovery Bonds, Ref. Series 2009-A, 5.25% 2021		17,750		21,116
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		24,000		27,483
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		19,600		22,608
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Bonds, Series 2009-E, 5.25% 2032		16,500		18,834
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		25,440		19,205
Turlock Irrigation Dist., Rev. Ref. Bonds, Series 2011, 5.50% 2041		17,990		20,152
Other securities				949,490
				1,078,888

Colorado 2.68%
Health Facs. Auth., Health Facs. Rev. Ref. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042		26,000		26,988
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		23,765		26,348
Other securities				196,668
				250,004

Florida 7.91%
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 6.00% 2017		20,000		22,931
Orlando-Orange County Expressway Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2035		27,350		29,888
Other securities				684,456
				737,275

Georgia 3.30%
City of Atlanta, Water and Wastewater Rev. Ref. Bonds, Series 1999-A, FGIC-National insured, 5.50% 2022		20,500		24,182
Dev. Auth. of Burke County, Pollution Control Rev. Bonds (Oglethorpe Power Corp. Vogtle Project), Series 2008-E, 7.00% 2023		19,670		22,927
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		23,000		27,068
Other securities				233,476
				307,653

Hawaii 0.27%
Pacific Health Obligated Group, Special Purpose Rev. Bonds (Dept. of Budget and Fin.), Series 2013-A, 5.50% 2043		17,000		18,957
Other securities				6,010
				24,967

Illinois 8.90%
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, L.L.C. – Northern Illinois University Project), Series 2011, 6.875% 2043		27,500		31,750
State Toll Highway Auth., Toll Highway Priority Rev. Bonds, Series 2006-A-1, Assured Guaranty Municipal insured, 5.00% 2024		5,000		5,398
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2008-B, 5.50% 2033		18,210		20,206
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2027		1,305		1,501
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2028		1,000		1,138
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2029		3,000		3,399

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Illinois (continued)
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2030	$	7,100	$	7,989
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2032		1,000		1,111
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2033		2,200		2,429
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2038		28,250		30,767
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2038		2,500		2,745
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2039		3,000		3,289
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 4.50% 2027		6,000		6,479
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2025		10,000		11,289
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2028		10,000		11,098
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2031		4,000		4,417
Other securities				684,873
				829,878

Indiana 2.25%
Fin. Auth., Midwestern Disaster Relief Rev. Bonds (Ohio Valley Electric Corp. Project), Series 2012-A, 5.00% 2039		18,415		18,815
Other securities				190,726
				209,541

Iowa 0.45%
Fin. Auth., Midwestern Disaster Area Rev. Ref. Bonds (Iowa Fertilizer Co. Project), Series 2013, 5.00% 2019		23,000		24,235
Other securities				17,958
				42,193

Kentucky 0.49%
Public Transportation Infrastructure Auth., Toll Rev. Bonds (Downtown Crossing Project), Series 2013-A, 6.00% 2053		18,020		20,374
Other securities				25,052
				45,426

Louisiana 2.04%
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032		24,360		27,135
Other securities				162,725
				189,860

Massachusetts 2.46%
Dev. Fin. Agcy., Rev. Bonds (Boston University Issue), Series 2013-X, 5.00% 2048		17,500		18,926
Other securities				210,268
				229,194

Michigan 3.38%
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		43,205		34,108
Other securities				280,674
				314,782

Nevada 2.00%
Clark County, Airport System Rev. Bonds, Series 2010-B, 5.125% 2036		18,000		19,436
Other securities				167,066
				186,502

New Hampshire 0.38%
Business Fin. Auth., Rev. Bonds (Elliot Hospital Obligated Group Issue), Series 2009-A, 6.125% 2039		18,115		19,518
Other securities				15,673
				35,191

30	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
New Jersey 2.30%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041	$	38,100	$	28,343
Transit Corp., Certs. of Part., Series 2005-A, FGIC-National insured, 5.00% 2018 (preref. 2015)		7,750		8,166
Transit Corp., Certs. of Part., Series 2005-A, FGIC-National insured, 5.00% 2021 (preref. 2015)		5,000		5,269
Transportation Trust Fund Auth., Transportation System Bonds (Capital Appreciation Bonds), Series 2010-A, 0% 2030		10,000		4,652
Transportation Trust Fund Auth., Transportation System Bonds, Series 2004-A, FGIC-National insured, 5.75% 2025		5,000		6,075
Transportation Trust Fund Auth., Transportation System Bonds, Series 2005-D, 5.00% 2020 (preref. 2015)		4,000		4,170
Transportation Trust Fund Auth., Transportation System Bonds, Series 2008-A, 6.00% 2038		3,255		3,796
Transportation Trust Fund Auth., Transportation System Bonds, Series 2008-A, 6.00% 2038 (preref. 2018)		1,745		2,124
Transportation Trust Fund Auth., Transportation System Bonds, Series 2011-B, 5.50% 2031		2,000		2,285
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2020		10,000		11,684
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2021		10,000		11,568
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2006-A, 5.25% 2022		20,000		23,216
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Series 2005-B, AMBAC insured, 5.25% 2023		8,000		9,297
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Series 2013-A, 5.00% 2020		1,000		1,149
Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds, Current Interest Bonds, Series 2012-A, 5.00% 2042		2,240		2,364
Other securities				90,602
				214,760

New York 5.57%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		21,000		23,173
Seneca Nation of Indians, Rev. Bonds, Series A, 5.00% 2023²		18,900		19,814
Other securities				476,192
				519,179

Ohio 4.00%
Air Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2009-C, 5.625% 2018		17,200		19,223
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Convertible Capital Appreciation Bonds, Series 2007-A-3, 6.25% 2037		5,000		4,160
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		38,990		31,740
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		35,790		27,999
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		51,125		43,131
Other securities				247,107
				373,360

South Carolina 1.35%
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		21,707
Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2008-A, 5.50% 2038		20,000		22,570
Other securities				81,925
				126,202

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Texas 9.32%
Bexar County Hospital Dist., Combination Tax and Rev. Certificates of Obligation, Series 2008, 5.00% 2032	$	20,500	$	22,590
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2028		1,500		1,702
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2011-A, 5.00% 2021		1,400		1,696
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2013-B, 5.00% 2026		1,600		1,918
Public Fin. Auth., G.O. Bonds, Series 2007, 5.00% 2024		1,525		1,718
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017		2,050		2,297
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017 (escrowed to maturity)		200		224
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2021		11,420		13,059
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2021 (preref. 2018)		1,125		1,295
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2028		6,375		7,134
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2028 (preref. 2018)		625		720
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, Series 2013-B, 5.00% 2053		24,800		26,519
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.50% 2018		1,000		1,136
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.625% 2033		15,100		16,811
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021		3,760		4,287
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023		12,570		14,332
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025		5,000		5,662
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		2,150		2,297
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2033		11,000		12,269
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2038		8,500		9,454
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.00% 2028		16,000		18,763
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.10% 2028		5,000		5,857
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.25% 2039		5,000		5,794
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2034		1,500		1,752
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2038		5,000		5,780
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-A, 0.86% 2050 (put 2019)¹		3,600		3,595
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-B, 5.00% 2038		8,000		8,502
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)		8,600		8,644
Other securities				663,623
				869,430

Washington 3.04%
Energy Northwest, Electric Rev. Ref. Bonds (Project 1), Series 2012-A, 5.00% 2017		17,000		19,178
Health Care Facs. Auth., Rev. Ref. Bonds (Virginia Mason Medical Center), Series 2007-A, 6.125% 2037		18,500		19,436
Other securities				245,257
				283,871

Wisconsin 1.95%
General Fund Annual Appropriation Rev. Ref. Bonds, Series 2009-A, 6.00% 2036		52,960		62,553
Other securities				119,737
				182,290
Other states & U.S. territories 11.27%
Other securities				1,051,976

Total bonds, notes & other debt instruments (cost: $7,869,514,000)				8,381,471

32	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Short-term securities 9.47%	Principal amount (000)		Value (000)
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-A, 0.05% 2033¹	$	3,500	$	3,500
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-B, 0.05% 2033¹		9,000		9,000
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-C, 0.05% 2033¹		13,100		13,100
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (ExxonMobil Project), Series 2001, 0.05% 2029¹		7,600		7,600
State of Louisiana, Industrial Dev. Board of the Parish of East Baton Rouge, Inc., Gulf Opportunity Zone Rev. Bonds (ExxonMobil Project), Series 2010-B, 0.05% 2040¹		4,550		4,550
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (Exxon Project), Series 1989, 0.04% 2019¹		7,020		7,020
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobil Project), Series 2010-A, 0.05% 2035¹		5,200		5,200
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp. Rev. Bonds (ExxonMobil Project), Series 2011, 0.04% 2038¹		21,800		21,800
State of Wyoming, Sublette County, Pollution Control Rev. Bonds (Exxon Project), Series 1984, 0.04% 11/1/2014¹		9,500		9,500
State of California, County of Ventura, 2014-15 Tax and Rev. Anticipation Notes 1.50% 2015		20,000		20,252
State of California, County of Los Angeles, 2014-15 Tax and Rev. Anticipation Notes, 1.50% 2015		22,670		22,961
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2014-A, 1.50% 6/26/2015		56,000		56,704
State of Massachusetts, Health and Educational Facs. Auth., Demand Rev. Bonds (Dana Farber Cancer Institute Issue), Series 2008-L1, JPMorgan Chase LOC, 0.04% 2046¹		20,000		20,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030¹		18,800		18,800
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-B, 0.05% 2030¹		20,200		20,200
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.05% 2030¹		22,100		22,100
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-A, 0.05% 2030¹		12,400		12,400
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 0.05% 2030¹		4,000		4,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-G, 0.04% 2030¹		2,300		2,300
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.04% 2035¹		2,400		2,400
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-H, 0.05% 2035¹		1,100		1,100

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Short-term securities (continued)	Principal amount (000)		Value (000)
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-K, 0.05% 2035¹	$	14,100	$	14,100
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-L, 0.04% 2035¹		1,275		1,275
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-L, 0.05% 2035¹		1,780		1,780
State of Mississippi, Jackson County, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1992, 0.05% 2016¹		1,200		1,200
State of Mississippi, Jackson County, Port Fac.Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2023¹		5,430		5,430
State of Wyoming, Uinta County, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2020¹		19,520		19,520
State of New Jersey, Transportation Trust Fund Auth., Transportation System Bonds, Series 2009-C, 0.06% 2032¹		6,250		6,250
State of New York, City of New York, G.O. Bonds, Fiscal 1993 Series A-7, JPMorgan Chase LOC, 0.06% 2020¹		5,500		5,500
State of New York, City of New York, G.O. Bonds, Fiscal 1999 Series B-2, JPMorgan Chase LOC, 0.05% 2023¹		1,550		1,550
State of New York, City of New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.06% 2038¹		12,000		12,000
State of New York, City of New York, G.O. Bonds, Fiscal 2012 Series G, Subseries G-5, 0.04% 2042¹		3,000		3,000
State of Texas, Tax and Rev. Anticipation Notes, Series 2013, 2.00% 8/28/2014		225,000		225,333
Other securities				301,254

Total short-term securities (cost: $882,640,000)				882,679
Total investment securities 99.34% (cost: $8,752,154,000)				9,264,150
Other assets less liabilities 0.66%				61,625

Net assets 100.00%			$	9,325,775

“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 $113,731,000, which represented 1.22% 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, 2014

Bonds, notes & other debt instruments 91.25%	Principal amount (000)		Value (000)
Arizona 2.62%
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	$	17,244
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		10,485
Other securities				51,846
				79,575

California 14.00%
Morongo Band of Mission Indians, Enterprise Rev. Ref. Bonds, Series 2008-B, 6.50% 2028		9,750		10,602
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		12,750		14,707
Redev. Agcy. of the City of San Jose, Tax Allocation Ref. Bonds (Merged Area Redev. Project), Series 2006-C, National insured, 3.75% 2028		11,545		11,182
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		14,375		10,852
Other securities				377,318
				424,661

Colorado 4.93%
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		18,385
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		3,010
Health Facs. Auth., Health Care Facs. Rev. Bonds (American Baptist Homes of the Midwest Obligated Group), Series 2013, 8.00% 2043		11,000		12,766
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2035		17,050		17,163
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		14,800		16,408
Other securities				81,900
				149,632

Florida 7.35%
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		13,567
Lee County, Airport Rev. Ref. Bonds, Series 2011-A, AMT, 5.375% 2032		9,935		10,836
Seminole Tribe of Florida, Series A, 5.25% 2027¹		10,000		10,674
Other securities				187,974
				223,051

Illinois 6.20%
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2010-A, 6.00% 2039		8,935		10,021
Fin. Auth., Rev. Ref. Bonds (Provena Health), Series 2009-A, 7.75% 2034		9,800		12,119
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, L.L.C. – Northern Illinois University Project), Series 2011, 6.875% 2043		11,500		13,277
Southwestern Illinois Dev. Auth., Health Fac. Rev. Bonds (Memorial Group, Inc.), Series 2013, 7.625% 2048		11,000		12,229
Other securities				140,379
				188,025

Iowa 1.02%
Fin. Auth., Midwestern Disaster Area Rev. Ref. Bonds (Iowa Fertilizer Co. Project), Series 2013, 5.25% 2025		12,750		13,488
Other securities				17,330
				30,818

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Louisiana 1.58%
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032	$	9,500	$	10,582
Other securities				37,195
				47,777

Massachusetts 1.38%
Dev. Fin. Agcy., Resource Recovery Rev. Ref. Bonds (Covanta Energy Project), Series 2012-C, AMT, 5.25% 2042		9,250		9,368
Other securities				32,612
				41,980

Michigan 5.25%
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		36,850		29,091
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.875% 2042		5,440		5,036
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.00% 2034		11,000		11,403
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-B, AMT, 5.00% 2037		2,000		2,054
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		5,000		5,754
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2022		2,000		2,264
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2028		12,000		12,847
Other securities				90,841
				159,290

Missouri 1.76%
Industrial Dev. Auth. of the City of Lee’s Summit, Senior Living Facs. Rev. Ref. Bonds (John Knox Village Obligated Group), Series 2014-A, 5.25% 2039		9,500		9,369
Other securities				43,870
				53,239

New Jersey 3.77%
Econ. Dev. Auth., Energy Fac. Rev. Bonds (ACR Energy Partners, LLC Project), Series 2011-A, AMT, 10.50% 2032¹		13,000		9,587
Econ. Dev. Auth., Private Activity Bonds (Goethals Bridge Replacement Project), Series 2013, AMT, 5.375% 2043		9,225		9,823
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.125% 2023		4,500		4,719
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.25% 2029		17,000		17,583
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2000-B, AMT, 5.625% 2030		1,750		1,866
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2003, AMT, 5.50% 2033		3,500		3,684
Econ. Dev. Auth., Special Fac. Rev. Ref. Bonds (Continental Airlines, Inc. Project), Series 2012, AMT, 5.75% 2027		4,500		4,780
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041		23,355		17,374
Other securities				44,922
				114,338

36	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
New York 3.44%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049	$	13,360	$	14,743
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		16,700
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		3,130		3,458
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		2,212
Other securities				67,128
				104,241

Ohio 4.27%
Air Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2009-C, 5.625% 2018		8,580		9,589
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		13,000		10,583
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		18,405		14,398
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		23,500		19,826
County of Gallia, Hospital Facs. Rev. Ref. and Improvement Bonds (Holzer Health System Obligated Group Project), Series 2012-A, 8.00% 2042		11,000		12,086
Other securities				62,961
				129,443

Oklahoma 0.88%
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2001-B, AMT, 5.50% 2035		16,250		16,841
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2013-B, AMT, 5.50% 2035		120		124
Other securities				9,739
				26,704

Oregon 0.51%
Cow Creek Band of Umpqua Tribe of Indians, Tax Rev. Bonds, Series 2006-C, 5.625% 2026		9,915		9,833
Other securities				5,726
				15,559

Pennsylvania 2.97%
Hospitals and Higher Education Facs. Auth. of Philadelphia, Hospital Rev. Bonds (Temple University Health System Obligated Group), Series 2012-A, 5.625% 2042		13,045		13,240
Other securities				76,699
				89,939

Puerto Rico 3.29%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042		25,565		17,490
Public Improvement Ref. Bonds (G.O. Bonds), Series 2006-A, 5.00% 2023		2,000		1,538
Public Improvement Ref. Bonds (G.O. Bonds), Series 2012-A, 5.00% 2041		17,895		12,693
Public Improvement Ref. Bonds (G.O. Bonds), Series 2012-A, 5.50% 2039		4,070		3,014
Public Improvement Ref. Bonds (G.O. Bonds), Series 2014-A, 8.00% 2035		14,850		13,391
Other securities				51,581
				99,707

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Texas 6.46%
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	$	14,814
Cities of Dallas and Fort Worth, Dallas/Fort Worth International Airport, Joint Rev. Improvement Bonds, Series 2012-D, AMT, 5.00% 2042		9,000		9,397
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Airport Improvement Projects), Series 1997-C, AMT, 6.125% 2027		1,000		1,003
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.50% 2030		9,300		10,405
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.625% 2038		3,000		3,348
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 4.75% 2024		3,000		3,098
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 5.00% 2029		5,000		5,066
Sanger Texas Industrial Dev. Corp., Industrial Dev. Rev. Ref. Bonds (Texas Pellets Project), Series 2012-B, AMT, 8.00% 2038		14,250		15,375
Other securities				133,483
				195,989

Washington 1.27%
Housing Fin. Commission, Nonprofit Housing Rev. Ref. Bonds (Rockwood Retirement Project), Series 2014-A, 7.50% 2049¹		9,090		9,890
Other securities				28,669
				38,559

Other states & U.S. territories 18.30%
Other securities				554,800

Total bonds, notes & other debt instruments (cost: $2,644,997,000)				2,767,327

Short-term securities 7.96%
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-A, 0.05% 2033²		7,740		7,740
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (ExxonMobil Project), Series 2001, 0.05% 2029²		1,200		1,200
State of Illinois, Will County, Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001, AMT, 0.06% 2026²		1,400		1,400
State of Illinois, Will County, Exempt Facs. Rev. Ref. Bonds (Exxon Project), Series 2001, AMT, 0.06% 2026²		6,500		6,500
State of Louisiana, Industrial Dev. Board of the Parish of East Baton Rouge, Inc., Gulf Opportunity Zone Rev. Bonds (ExxonMobil Project), Series 2010-B, 0.05% 2040²		5,100		5,100
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (Exxon Project), Series 1989, 0.04% 2019²		1,750		1,750
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobil Project), Series 2010-A, 0.05% 2035²		1,800		1,800
State of Louisiana, Parish of St. Bernard, Exempt Fac. Rev. Bonds (Mobil Oil Corp. Project), Series 1996, AMT, 0.06% 2026²		3,800		3,800
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2000, AMT, 0.06% 2030²		2,000		2,000
State of Texas, Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (ExxonMobil Project), Series 2001-B, AMT, 0.06% 2025²		2,000		2,000

38	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp. Rev. Bonds (ExxonMobil Project), Series 2011, 0.04% 2038²	$	5,000	$	5,000
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp. Rev. Bonds (ExxonMobil Project), Series 2011, 0.04% 2051²		7,950		7,950
State of Wyoming, Lincoln County, Pollution Control Rev. Bonds (Exxon Project), Series 1987-A, AMT, 0.04% 2017²		2,000		2,000
State of Wyoming, Lincoln County, Pollution Control Rev. Bonds (Exxon Project), Series 1987-B, AMT, 0.04% 2017²		3,900		3,900
State of Wyoming, Lincoln County, Pollution Control Rev. Bonds (Exxon Project), Series 1987-C, AMT, 0.04% 2017²		3,400		3,400
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2014-A, 1.50% 6/26/2015		25,000		25,315
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.05% 2030²		1,000		1,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-E, 0.05% 2030²		9,000		9,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 0.05% 2030²		2,780		2,780
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-G, 0.04% 2030²		1,200		1,200
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-I, 0.04% 2035²		5,580		5,580
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2014-B, 0.05% 2035²		5,870		5,870
State of Mississippi, Jackson County, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1992, 0.05% 2016²		3,105		3,105
State of Wyoming, Uinta County, Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 0.04% 2020²		5,600		5,600
State of Texas, Tax and Rev. Anticipation Notes, Series 2013, 2.00% 8/28/2014		30,000		30,044
Other securities				96,249

Total short-term securities (cost: $241,277,000)				241,283
Total investment securities 99.21% (cost: $2,886,274,000)				3,008,610
Other assets less liabilities 0.79%				24,020

Net assets 100.00%			$	3,032,630

“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 $138,978,000, which represented 4.58% 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

The Tax-Exempt Fund of California

Summary investment portfolio July 31, 2014

Bonds, notes & other debt instruments 91.82%	Principal amount (000)		Value (000)
California 88.09%
State issuers 33.99%
Educational Facs. Auth., Rev. Ref. Bonds (California Lutheran University), Series 2008, 5.75% 2038	$	6,000	$	6,766
Educational Facs. Auth., Rev. Ref. Bonds (Chapman University), Series 2011,5.00% 2031		8,615		9,396
G.O. Bonds, Series 2013-E, 0.939% 2029¹		1,500		1,515
Various Purpose G.O. Bonds, 5.00% 2038		3,000		3,306
Various Purpose G.O. Bonds, 5.25% 2028		2,000		2,341
Various Purpose G.O. Bonds, 5.25% 2028		5,000		5,860
Various Purpose G.O. Bonds, 6.00% 2038		7,000		8,247
Various Purpose G.O. Bonds, 6.00% 2039		2,000		2,402
Various Purpose G.O. Bonds, 6.50% 2033		5,000		6,089
Various Purpose G.O. Ref. Bonds, 5.25% 2030		2,000		2,311
Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-A-1, 5.75% 2047		11,725		9,434
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2008-G, 5.50% 2025		3,500		3,980
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2009-A, 6.00% 2029		1,500		1,724
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2011-A, 5.25% 2041		2,000		2,136
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-B, 5.50% 2030		970		1,061
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-D, 5.50% 2031		6,090		6,656
Health Facs. Fncg. Auth., Rev. Bonds (Rady Children’s Hospital - San Diego), Series 2011, 5.25% 2041		5,000		5,535
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Cedars-Sinai Medical Center), Series 2005, 5.00% 2027		12,750		13,383
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-D, 5.00% 2034 (put 2016)		5,000		5,487
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-C, 5.00% 2043 (put 2019)		2,000		2,355
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Hospital and Clinics), Series 2010-B, 5.25% 2031		8,000		9,036
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.00% 2033		11,500		12,558
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2024		2,000		2,285
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2025		2,000		2,276
Municipal Fin. Auth., Certs. of Part. (Community Hospitals of Central California Obligated Group), 5.25% 2037		5,500		5,600
Municipal Fin. Auth., Rev. Ref. Bonds (Azusa Pacific University Project), Series 2011-B, 8.00% 2041²		8,550		10,089
Northern California Power Agcy., Geothermal Project Number 3 Rev. Bonds, Series 2009-A, 5.50% 2022		1,000		1,190
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2010-A, 5.00% 2023		3,680		4,129
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2029		1,570		1,774
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2030		1,000		1,123
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2020		2,010		2,391
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2025		6,000		6,760
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		5,377
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		1,075
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 2045²		7,000		7,198

40	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

	Principal amount (000)		Value (000)
Public Works Board, Lease Rev. Bonds (Regents of the University of California, Various University of California Projects), Series 2009-E, 5.00% 2024 (preref. 2019)	$	2,500	$	2,940
Public Works Board, Lease Rev. Bonds (Regents of the University of California, Various University of California Projects), Series 2009-E, 5.00% 2034 (preref.2019)		1,500		1,764
Regents of the University of California, Limited Project Rev. Bonds, Series 2007-D, FGIC-National insured, 5.00% 2037		5,000		5,379
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 0.82% 2037¹		5,000		3,937
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 0.89% 2043¹		8,000		5,958
Southern California Public Power Auth., Transmission Project Rev. Ref. Bonds (Southern Transmission Project), Series 2008-A, 5.00% 2022		4,960		5,739
Statewide Communities Dev. Auth., Rev. Bonds (Front Porch Communities and Services Project), Series 2007-A, 5.125% 2037²		9,500		9,614
Statewide Communities Dev. Auth., Rev. Bonds (Inland Regional Center Project), Series 2007, 5.375% 2037		6,500		6,742
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2012-A, 5.00% 2042		6,500		7,050
Statewide Communities Dev. Auth., Rev. Ref. Bonds (American Baptist Homes of the West), Series 2010, 6.25% 2039		5,300		5,690
Statewide Communities Dev. Auth., Senior Living Rev. Ref. Bonds (Southern California Presbyterian Homes), Series 2006-A, 4.875% 2036		6,500		6,460
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2008, 5.50% 2026		3,500		3,816
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2008, 6.00% 2040		4,750		5,106
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		1,345
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		2,751
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		3,059
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		2,026
Other securities				262,638
				515,910

City & county issuers 54.10%
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2026		6,375		7,340
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		6,680
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Insured Senior Living Rev. Ref. Bonds (Odd Fellows Home of California), Series 2012-A, 5.00% 2032		5,000		5,560
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.96% 2045 (put 2023)¹		2,000		1,977
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.00% 2039 (preref. 2018)		2,000		2,308

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
California (continued)
City & county issuers (continued)
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.125% 2047 (preref.2018)	$	6,000	$	6,951
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.125% 2039 (preref. 2019)		2,000		2,366
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.625% 2044 (preref. 2019)		1,670		2,014
County of Contra Costa Public Fncg. Auth., Lease Rev. Ref. Bonds (Medical Center Ref.), Series 2007-B, National insured, 5.00% 2017		5,000		5,533
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		7,500		8,589
Successor Agcy. to the Inland Valley Dev. Agcy., Tax Allocation Ref. Bonds, Series 2014-A 5.00% 2044		7,500		8,015
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Series 2006-A, AMT, National insured, 5.00% 2020		6,000		6,626
City of Los Angeles, Dept. of Water and Power, Power System Rev. Bonds, Series 2008-A-2, 5.25% 2032		2,000		2,265
City of Los Angeles, Dept. of Water and Power, Power System Rev. Ref. Bonds, Series 2009-A, 5.00% 2027		1,500		1,729
City of Los Angeles, Dept. of Water and Power, Power System Rev. Ref. Bonds, Series 2009-A, 5.00% 2028		1,835		2,106
City of Los Angeles, Dept. of Water and Power, Power System Rev. Ref. Bonds, Series 2009-B, 5.25% 2023		1,500		1,785
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		5,728
Roseville Natural Gas Fncg. Auth., Gas Rev. Bonds, Series 2007, 5.00% 2022		4,920		5,548
Sacramento Cogeneration Auth., Cogeneration Project Rev. Ref. Bonds (Procter & Gamble Project), Series 2009, 5.25% 2020		995		1,191
Sacramento Cogeneration Auth., Cogeneration Project Rev. Ref. Bonds (Procter & Gamble Project), Series 2009, 5.25% 2021		900		1,082
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.25% 2024		2,000		2,383
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.70% 2017		2,500		2,882
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 1997-K, AMBAC insured, 5.80% 2019		3,000		3,661
Sacramento Municipal Utility Dist., Electric Rev. Bonds, Series 2013-A, 5.00% 2041		4,500		4,959
Sacramento County Sanitation Districts Fncg. Auth., Rev. Ref. Bonds (Sacramento Regional County Sanitation Dist.), Series 2007-B, FGIC-National insured, 0.682% 2035¹		13,500		11,805
Sacramento Municipal Utility Dist. Fncg. Auth., Cosumnes Project Rev. Bonds, Series 2006, National insured, 5.125% 2029		10,000		10,655
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		10,825		12,486
Public Facs. Fncg. Auth. of the City of San Diego, Water Rev. Ref. Bonds, Series 2012-A, 5.00% 2028		5,000		5,799

42	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

	Principal amount (000)		Value (000)
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Bonds, Series 2009-E, 6.00% 2039	$	3,000	$	3,560
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		4,062
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		5,648
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2010-F, 5.00% 2040		3,000		3,187
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		2,914
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		1,116
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		1,103
San Francisco Municipal Transportation Agcy., Rev. Bonds, Series 2012-B, 5.00% 2042		5,000		5,504
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.50% 2030		8,000		8,891
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		7,800		5,888
City of Torrance, Rev. Bonds (Torrance Memorial Medical Center), Series 2010-A, 5.00% 2040		5,185		5,442
Other securities				633,695
				821,033

Puerto Rico 1.85%
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		7,363
Other securities				20,635
				27,998

Other U.S. territories 1.88%
Other securities				28,635

Total bonds, notes & other debt instruments (cost: $1,310,498,000)				1,393,576

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Short-term securities 7.51%	Principal amount (000)		Value (000)
Statewide Communities Dev. Auth., Rev. Ref. Bonds (John Muir Health), Series 2008-C, Wells Fargo Bank LOC, 0.05% 2027¹	$	5,595	$	5,595
Dept. of Water and Power of the City of Los Angeles, Power System Demand Rev. Bonds, Series 2001-B, Subseries B-6, 0.04% 2034¹		8,900		8,900
County of Ventura, 2014-15 Tax and Rev. Anticipation Notes 1.50% 2015		15,000		15,189
County of Los Angeles, 2014-15 Tax and Rev. Anticipation Notes, 1.50% 2015		11,335		11,480
Fin. Auth., Recovery Zone Fac. Bonds (Chevron U.S.A. Inc. Project), Series 2010-A, 0.03% 2035¹		3,600		3,600
Fin. Auth., Recovery Zone Fac. Bonds (Chevron U.S.A. Inc. Project), Series 2010-B, 0.03% 2035¹		3,650		3,650
Statewide Communities Dev. Auth., Pollution Control Rev. Ref. Bonds (Chevron U.S.A. Inc. Project), Series 2002, 0.03% 2024¹		2,265		2,265
Health Facs. Fncg. Auth., Rev. Bonds (St. Joseph Health System), Series 2011-B, 0.05% 2041¹		7,900		7,900
Infrastructure and Econ. Dev. Bank, Ref. Rev. Bonds (Pacific Gas and Electric Company), Series 2009-D, 0.03% 2016¹		1,600		1,600
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (Pacific Gas and Electric Company), Series 2009-C, 0.03% 2016¹		1,000		1,000
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-C, JPMorgan Chase LOC, 0.04% 2026¹		4,800		4,800
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-E, JPMorgan Chase LOC, 0.04% 2026¹		2,900		2,900
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-F, JPMorgan Chase LOC, 0.04% 2026¹		9,900		9,900
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1997-B, AMT, JPMorgan Chase LOC, 0.06% 2026¹		18,900		18,900
Other securities				16,210

Total short-term securities (cost: $113,887,000)				113,889
Total investment securities 99.33% (cost: $1,424,385,000)				1,507,465
Other assets less liabilities 0.67%				10,207

Net assets 100.00%			$	1,517,672

“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 $30,240,000, which represented 1.99% 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

44	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Investment portfolio July 31, 2014

Bonds, notes & other debt instruments 91.07%	Principal amount (000)		Value (000)
New York 82.34%
State issuers 44.97%
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 5.50% 2043	$	1,000	$	1,037
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-A-2A, 0.44% 2026 (put 2017)¹		500		500
Metropolitan Transportation Auth., Dedicated Tax Fund Bonds, Series 2004-C, AMBAC insured, 5.50% 2017		1,000		1,156
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, 1.06% 2020¹		2,000		2,005
Dormitory Auth., Touro College and University System Obligated Group Rev. Bonds, Series 2014-A, 5.50% 2039		500		547
Dormitory Auth., Consolidated Service Contract Rev. Ref. Bonds, Series 2010, 5.00% 2020		500		593
Dormitory Auth., Culinary Institute of America Rev. Bonds, Series 2013, 5.50% 2033		500		547
Dormitory Auth., Fordham University Rev. Bonds, Series 2011-A, 5.50% 2036		1,000		1,118
Dormitory Auth., Lease Rev. Bonds (State University Dormitory Facs. Issue), Series 2010-A, 5.00% 2035		1,000		1,111
Dormitory Auth., Third General Resolution Rev. Ref. Bonds (State University Educational Facs. Issue), Series 2012-A, 5.00% 2020		1,000		1,184
Dormitory Auth., Miriam Osborn Memorial Home Association Rev. Ref. Bonds, Series 2012, 5.00% 2042		970		1,015
Dormitory Auth., Mount Sinai School of Medicine of New York University, Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		1,000		1,146
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021		500		580
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040		500		545
Dormitory Auth., North Shore-Long Island Jewish Obligated Group, Rev. Ref. Bonds, Series 2011-A, 5.00% 2032		1,500		1,622
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2011-A, 6.00% 2040		1,000		1,116
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2008,6.25% 2037		1,000		1,043
Dormitory Auth., Rochester General Hospital Insured Rev. Bonds, Series 2005, RADIAN insured, 5.00% 2015 (escrowed to maturity)		720		766
Dormitory Auth., School Districts Rev. Bond Fncg. Program Rev. Ref. Bonds, Series 2011-A, 5.00% 2024		1,000		1,165
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		1,202
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041		1,420		1,581
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-C, 5.00% 2038		500		562
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2013-A, 2.75% 2017		1,000		1,051
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2012, AMT, 0.45% 2030 (put 2014)¹		500		500
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.25% 2047		1,000		1,090
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.75% 2047		1,000		1,139
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031		1,500		1,639
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		1,500		1,655
Liberty Dev. Corp., Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035		2,000		2,319
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2039		1,000		1,090
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014,5.00% 2044		750		814

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
State issuers (continued)
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-A2, 0.33% 2041 (put 2016)¹	$	905	$	905
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2031		1,000		1,115
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-B, 5.00% 2044		1,000		1,093
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-G-1H, 0.952% 2026 (put 2016)¹		715		723
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178,3.50% 2043		575		619
Mortgage Agcy., Mortgage Rev. Bonds, Series 46, 5.00% 2029		310		334
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 45,4.50% 2029		630		648
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 48,2.625% 2041		820		850
Port Auth., Consolidated Bonds, Series 147, AMT, FGIC-National insured, 5.00% 2021		1,000		1,101
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031		1,000		1,113
Port Auth., Consolidated Rev. Ref. Bonds, Series 136, AMT, National insured, 5.00% 2021		500		507
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025		1,000		1,132
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034		1,000		1,090
Port Auth., Special Project Bonds (JFK International Air Terminal LLC Project), Series 8, 5.00% 2020		1,000		1,159
Power Auth. of the State of New York, Rev. Ref. Bonds, Series 2011-A, 5.00% 2038		1,500		1,668
Thruway Auth., General Rev. Bonds, Series 2014-J, 5.00% 2027		1,000		1,165
Thruway Auth., General Rev. Junior Indebtedness Obligations Series 2013-A, 5.00% 2019		500		580
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2020		1,000		1,172
Thruway Auth., Second General Highway and Bridge Trust Fund Bonds, Series 2010-A, 5.00% 2015		750		774
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2020		400		433
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2021		200		216
Tobacco Settlement Fncg. Corp., Rev. Ref. Bonds (State Contingency Contract Secured), Series 2011-B, 5.00% 2018		1,000		1,154
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2010-A-1,5.00% 2019		1,000		1,180
Troy Industrial Dev. Auth., Civic Fac. Rev. Bonds (Rensselaer Polytechnic Institute Project), Series 2011-E, 5.00% 2031		500		543
Urban Dev. Corp., Service Contract Rev. Ref. Bonds, Series 2010-A-2, 5.00% 2020		1,000		1,174
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1,5.25% 2038		1,000		1,121
				57,007

City & county issuers 37.37%
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		1,131
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		549
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		1,525
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		1,050
County of Chautauqua Industrial Dev. Agcy., Exempt Fac. Rev. Bonds (NRG Dunkirk Power Project), Series 2009,5.875% 2042		1,000		1,088

46	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount		Value
		(000)		(000)
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2030	$	500	$	560
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2040		1,000		1,102
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		1,176
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		1,183
Erie County Industrial Dev. Agcy., School Fac. Rev. Ref. Bonds (City School Dist. of the City of Buffalo Project), Series 2013-A, 5.00% 2027		790		917
Essex County Industrial Dev. Agcy., Solid Waste Disposal Rev. Ref. Bonds, Series 2005-A, AMT, 5.20% 2023		750		776
Various Purpose G.O. Bonds, Series 2007-B, 5.00% 2017		1,215		1,375
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2027		1,300		1,452
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2041		1,600		1,720
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038		1,000		1,066
Long Island Power Auth., Electric System General Rev. Ref. Bonds, Series 2003-B, 5.25% 2014		1,000		1,017
County of Monroe Industrial Dev. Agcy., School Fac. Rev. Bonds (Rochester Schools Modernization Project), Series 2012-A, 5.00% 2021		1,000		1,186
Nassau County Local Econ. Assistance Corp., Rev. Ref. Bonds (Winthrop-University Hospital Association Project), Series 2012, 5.00% 2037		1,000		1,041
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.61% 2025¹		1,500		1,499
City of New York, G.O. Bonds, Fiscal 2008 Series L-1, 5.00% 2023		1,000		1,133
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2019		925		1,088
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (1998 British Airways Plc Project), Series 1998, AMT, 5.25% 2032		500		500
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
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		1,171
New York City Transitional Fin. Auth., Building Aid Rev. Bonds, Fiscal 2007 Series S-2, Assured Guaranty Municipal insured, 5.00% 2017		570		631
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series C, 5.25% 2025		1,000		1,184
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010 Series D, 5.00% 2023		1,000		1,167
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2014-A1, 5.00% 2037		500		563
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2014-A1, 5.00% 2038		500		562
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		540		619
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2025		500		566
Trust for Cultural Resources of the City of New York, Rev. Bonds (Juilliard School), Series 2009-B, 1.35% 2036 (put 2017)		1,500		1,521

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
City & county issuers (continued)
Niagara Area Dev. Corp. (New York), Solid Waste Disposal Fac. Rev. Ref. Bonds (Covanta Energy Project), Series 2012-A, AMT, 5.25% 2042	$	750	$	759
Onondaga Civic Dev. Corp., Rev. Bonds (St. Joseph’s Hospital Health Center Project), Series 2014-A, 5.125% 2031		1,000		1,037
County of Rockland G.O. Bonds, Series 2014-A, Assured Guaranty Municipal insured, 5.00% 2024		1,000		1,184
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Catholic Health Services of Long Island Obligated Group Project), Series 2011, 5.00% 2028		1,000		1,081
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030		1,000		1,095
Suffolk County Industrial Dev. Agcy., Continuing Care Retirement Community Rev. Ref. Bonds (Jefferson’s Ferry Project), Series 2006, 5.00% 2028		1,000		1,033
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		1,005
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2012-B, 5.00% 2032		750		784
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.00% 2034		1,230		1,012
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.125% 2042		2,250		1,798
Westchester County Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030		1,000		1,136
Westchester County Local Dev. Corp., Rev. Ref. Bonds (Pace University), Series 2014-A, 5.50% 2042		500		539
City of Yonkers, G.O. Bonds, Series 2011-A, 5.00% 2019		1,000		1,137
				47,366

Guam 2.94%
A.B. Won Pat International Airport Auth., General Rev. Bonds, Series 2013-C, AMT, 6.375% 2043		500		558
Government of Guam, Business Privilege Tax Bonds, Series 2011-A, 5.00% 2031		1,200		1,267
Government of Guam, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2011-A, 6.125% 2031		500		557
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2013, 5.00% 2028		500		539
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2014-A, 5.00% 2029		750		808
				3,729

Puerto Rico 3.63%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042		250		171
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		750		697
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% 2020		500		495
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		391
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		1,030
Public Improvement Ref. Bonds (G.O. Bonds), Series 2012-A, 5.00% 2041		750		532
Public Improvement Ref. Bonds (G.O. Bonds), Series 2014-A, 8.00% 2035		1,200		1,082
University of Puerto Rico, University System Rev. Ref. Bonds, Series 2006-Q, 5.00% 2020		350		207
				4,605

48	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount		Value
		(000)		(000)
Virgin Islands 2.16%
Public Fin. Auth., Rev. Bonds (Matching Fund Loan Note - Diageo Project), Series 2009-A, 6.625% 2029	$	500	$	550
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Note), Series 2013-B, 5.00% 2024		500		567
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Notes), Series 2012-A, 5.00% 2032		1,500		1,612
				2,729

Total bonds, notes & other debt instruments (cost: $109,374,000)				115,436

Short-term securities 10.75%
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, 0.05% 2035¹		4,050		4,050
City of New York, G.O. Bonds, Fiscal 1993 Series A-7, JPMorgan Chase LOC, 0.06% 2020¹		3,100		3,100
City of New York, G.O. Bonds, Fiscal 1993 Series A-7, JPMorgan Chase LOC, 0.06% 2021¹		1,100		1,100
City of New York, G.O. Bonds, Fiscal 1994 Series E-2, 0.06% 2020¹		1,400		1,400
New York City, Transitional Fin. Auth., New York City Recovery Bonds, Fiscal Series 2003-1, Subseries 1-C, 0.06% 2022¹		1,400		1,400
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2003-B-3, U.S. Bank LOC, 0.06% 2033¹		1,800		1,800
Dormitory Auth., University of Rochester Rev. Bonds, Series 2003-A,
JPMorgan Chase LOC, 0.06% 2031¹		780		780

Total short-term securities (cost: $13,630,000)				13,630
Total investment securities 101.82% (cost: $123,004,000)				129,066
Other assets less liabilities (1.82)%				(2,301	)

Net assets 100.00%			$	126,765

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

American Funds Tax-Exempt Funds

Financial statements

Statements of assets and liabilities

at July 31, 2014

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

Assets:
Investment securities, at value	$	803,044		$	3,065,681
Cash		171			129
Receivables for:
Sales of fund’s shares		3,387			5,028
Interest		5,705			28,842
		812,307			3,099,680

Liabilities:
Payables for:
Purchases of investments		12,119			16,995
Repurchases of fund’s shares		2,439			4,149
Dividends on fund’s shares		93			716
Investment advisory services		247			630
Services provided by related parties		95			819
Trustees’ deferred compensation		32			134
Other		8			11
		15,033			23,454
Net assets at July 31, 2014	$	797,274		$	3,076,226

Net assets consist of:
Capital paid in on shares of beneficial interest	$	787,344		$	2,923,933
(Distributions in excess of) undistributed net investment income		(30	)		323
Accumulated net realized loss		(397	)		(744	)
Net unrealized appreciation		10,357			152,714
Net assets at July 31, 2014	$	797,274		$	3,076,226
Investment securities, at cost	$	792,687		$	2,912,967

Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized
Class A
Net assets	$	736,824		$	2,615,153
Shares outstanding		71,891			162,454
Net asset value per share	$	10.25		$	16.10
Class B
Net assets				$	1,943
Shares outstanding					121
Net asset value per share				$	16.10
Class C
Net assets				$	37,950
Shares outstanding					2,358
Net asset value per share				$	16.10
Class F-1
Net assets	$	13,973		$	105,156
Shares outstanding		1,363			6,532
Net asset value per share	$	10.25		$	16.10
Class F-2
Net assets	$	46,477		$	183,068
Shares outstanding		4,535			11,372
Net asset value per share	$	10.25		$	16.10
Class R-6
Net assets				$	132,956
Shares outstanding					8,259
Net asset value per share				$	16.10

*	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			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York

$	9,264,150		$	3,008,610		$	1,507,465		$	129,066
	748			128			88			51

	16,030			8,869			2,427			158
	94,173			34,422			18,451			1,089
	9,375,101			3,052,029			1,528,431			130,364

	26,621			11,580			7,357			2,598
	15,142			5,099			1,666			815
	2,541			946			729			116
	1,916			820			407			38
	2,823			840			459			25
	274			106			133			—	^*
	9			8			8			7
	49,326			19,399			10,759			3,599
$	9,325,775		$	3,032,630		$	1,517,672		$	126,765

$	8,832,788		$	3,026,331		$	1,468,587		$	121,298
	6,073			2,680			925			36
	(25,082	)		(118,717	)		(34,920	)		(631	)
	511,996			122,336			83,080			6,062
$	9,325,775		$	3,032,630		$	1,517,672		$	126,765
$	8,752,154		$	2,886,274		$	1,424,385		$	123,004

$	6,771,633		$	2,357,300		$	1,265,017		$	101,874
	524,281			154,863			72,211			9,628
$	12.92		$	15.22		$	17.52		$	10.58

$	12,583		$	6,072		$	2,263		$	51
	974			399			129			5
$	12.92		$	15.22		$	17.52		$	10.58

$	324,944		$	160,323		$	75,612		$	7,809
	25,158			10,532			4,316			738
$	12.92		$	15.22		$	17.52		$	10.58

$	1,389,508		$	177,912		$	64,695		$	1,072
	107,580			11,688			3,693			101
$	12.92		$	15.22		$	17.52		$	10.58

$	662,219		$	223,050		$	110,085		$	15,959
	51,271			14,653			6,284			1,508
$	12.92		$	15.22		$	17.52		$	10.58

$	164,888		$	107,973
	12,766			7,093
$	12.92		$	15.22

American Funds Tax-Exempt Funds

Statements of operations

for the year ended July 31, 2014

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

Investment income:
Income:
Interest	$	12,839		$	94,085

Fees and expenses*:
Investment advisory services		2,903			7,459
Distribution services		1,161			8,489
Transfer agent services		262			1,060
Administrative services		105			479
Reports to shareholders		31			96
Registration statement and prospectus		96			171
Trustees’ compensation		10			45
Auditing and legal		50			63
Custodian		2			7
Federal and state income taxes		—			—
Other state and local taxes		—			—	^†
Other		10			31
Total fees and expenses before reimbursement		4,630			17,900
Less reimbursement of fees and expenses		—			—
Total fees and expenses after reimbursement		4,630			17,900
Net investment income		8,209			76,185

Net realized (loss) gain and unrealized appreciation on investments
Net realized (loss) gain on investments		(57	)		(37	)
Net unrealized appreciation on investments		2,982			28,487
Net realized (loss) gain and unrealized appreciation on investments		2,925			28,450

Net increase in net assets resulting from operations	$	11,134		$	104,635

*	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
^†	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		The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York

$	375,746		$	145,830	$	63,843		$	4,521

	22,494			9,178		4,787			446
	23,920			7,404		4,032			236
	4,540			1,620		480			53
	1,883			503		241			22
	324			151		43			20
	257			159		85			82
	116			39		34			1
	111			67		105			69
	21			7		3			—	^†
	608			742		54			—
	8			—		—	^†		—
	63			26		26			15
	54,345			19,896		9,890			944
	—			—		—			114
	54,345			19,896		9,890			830
	321,401			125,934		53,953			3,691
		��
	25,638			4,737		4,720			(544	)
	302,705			131,013		62,704			4,902
	328,343			135,750		67,424			4,358
$	649,744		$	261,684	$	121,377		$	8,049

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						Fund of America						Year ended			11 months			Year ended
	Year ended July 31,						Year ended July 31,						July 31,			ended July 31,			August 31,
	2014			2013			2014			2013			2014			2013*			2012
Operations:
Net investment income	$	8,209		$	8,529		$	76,185		$	77,334		$	321,401		$	304,084		$	331,210
Net realized (loss) gain on investments		(57	)		(257	)		(37	)		(316	)		25,638			53,350			(1,791	)
Net unrealized appreciation (depreciation) on investments		2,982			(7,365	)		28,487			(84,021	)		302,705			(559,829	)		583,007
Net increase (decrease) in net assets resulting from operations		11,134			907			104,635			(7,003	)		649,744			(202,395	)		912,426

Dividends and distributions paid or accrued to shareholders:
Dividends from net investment income		(8,160	)		(8,537	)		(76,058	)		(77,251	)		(319,217	)		(303,706	)		(330,173	)
Distributions from net realized gain on investments		—			(134	)		—			(579	)		—			—			—
Total dividends and distributions paid or accrued to shareholders		(8,160	)		(8,671	)		(76,058	)		(77,830	)		(319,217	)		(303,706	)		(330,173	)

Net capital share transactions		26,291			137,112			(31,816	)		197,263			(484,830	)		283,770			600,697

Total increase (decrease) in net assets		29,265			129,348			(3,239	)		112,430			(154,303	)		(222,331	)		1,182,950

Net assets:
Beginning of period		768,009			638,661			3,079,465			2,967,035			9,480,078			9,702,409			8,519,459
End of period	$	797,274		$	768,009		$	3,076,226		$	3,079,465		$	9,325,775		$	9,480,078		$	9,702,409
(Distribution in excess of) undistributed net investment income	$	(30	)	$	(77	)	$	323		$	249		$	6,073		$	4,757		$	5,428

*	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															American Funds
High-Income						The Tax-Exempt Fund of California									Tax-Exempt Fund
Municipal Bond Fund						Year ended			11 months			Year ended			of New York
Year ended July 31,						July 31,			ended July 31,			August 31,			Year ended July 31,
2014			2013			2014			2013*			2012			2014			2013

$	125,934		$	122,093		$	53,953		$	53,151		$	57,947		$	3,691		$	3,748
	4,737			36,678			4,720			6,856			2,731			(544	)		173
	131,013			(172,207	)		62,704			(83,071	)		105,471			4,902			(8,186	)
	261,684			(13,436	)		121,377			(23,064	)		166,149			8,049			(4,265	)


	(124,778	)		(121,785	)		(53,648	)		(52,987	)		(57,712	)		(3,671	)		(3,737	)
	—			—			—			—			—			—			—
	(124,778	)		(121,785	)		(53,648	)		(52,987	)		(57,712	)		(3,671	)		(3,737	)

	122,647			145,477			(54,918	)		(15,232	)		48,701			(1,111	)		2,834

	259,553			10,256			12,811			(91,283	)		157,138			3,267			(5,168	)

	2,773,077			2,762,821			1,504,861			1,596,144			1,439,006			123,498			128,666
$	3,032,630		$	2,773,077		$	1,517,672		$	1,504,861		$	1,596,144		$	126,765		$	123,498
$	2,680		$	1,564		$	925		$	728		$	729		$	36		$	25

American Funds Tax-Exempt Funds

Notes to financial statements

1. Organization

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, The Tax-Exempt Fund of California, which is presently the only series of The American Funds Tax-Exempt Series II, and American Funds Tax-Exempt Fund of New York (each a “fund” or collectively, the “funds”), are registered under the Investment Company Act of 1940 as open-end, diversified management investment companies.

Each fund’s investment objectives and the principal strategies each fund uses 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.

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 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.

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). 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). The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York each have five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2). Some share classes are only available to limited categories of investors. The funds’ share classes are described further in the following table:

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

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, transfer agent and administrative 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.

56	American Funds Tax-Exempt Funds

2. Significant accounting policies

Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the funds’ investment adviser 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 in this section, 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, transfer agent and administrative 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 U.S. GAAP. 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, 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 deemed to be not 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.

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. 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.

American Funds Tax-Exempt Funds

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, 2014, 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 — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.

Issuer risks — The values of, and the income generated by, securities held by the funds may also decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiative.

Investing in municipal securities — The yield and/or value of the fund’s investments in municipal securities may be adversely affected by events tied to the municipal securities markets, which can be very volatile and significantly impacted by unfavorable legislative or political developments and negative changes in the financial conditions of municipal securities issuers and the economy. To the extent the fund invests in obligations of a municipal issuer, the volatility, credit quality and performance of the fund may be adversely impacted by local political and economic conditions of the issuer. For example, a credit rating downgrade, bond default or bankruptcy involving an issuer within a particular state or territory could affect the market values and marketability of many or all municipal obligations of that state or territory. Income from municipal securities held by the fund could also be declared taxable because of changes in tax laws or interpretations by taxing authorities or as a result of noncompliant conduct of a municipal issuer. Additionally, the relative amount of publicly available information about municipal securities is generally less than that for corporate securities.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the funds may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. 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. Longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.

58	American Funds Tax-Exempt Funds

Bonds and other debt securities are also 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. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt 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 various credit and default risks.

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.

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 — Certain funds may invest in lower rated bonds and other lower rated debt securities. 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.

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.

Risks of 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.

Risks of 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.

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 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, 2014, 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.

American Funds Tax-Exempt Funds

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:

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

*	The year the fund commenced operations.

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, all of the funds had capital loss carryforwards available at July 31, 2014. 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															American
	Funds			Limited Term			The			American			The			Funds
	Short-Term			Tax-Exempt			Tax-Exempt			High-Income			Tax-Exempt			Tax-Exempt
	Tax-Exempt			Bond Fund			Bond Fund			Municipal			Fund of			Fund of
	Bond Fund			of America			of America			Bond Fund			California			New York
As of July 31, 2014:
Undistributed tax-exempt income	$	93		$	716		$	2,547		$	1,288		$	736		$	117
Post-October capital loss deferral*		—			—			(6,530	)		—			(703	)		—
Capital loss carryforward:
No expiration		(397	)		(744	)		—			(6,756	)		—			(628	)
Expiring 2017		—			—			—			(14,384	)		(3,872	)		—
Expiring 2018		—			—			(17,090	)		(69,969	)		(30,345	)		—
Expiring 2019		—			—			—			(24,408	)		—			—
	$	(397	)	$	(744	)	$	(17,090	)	$	(115,517	)	$	(34,217	)	$	(628	)
Capital loss carryforwards utilized	$	—		$	—		$	31,127		$	5,927		$	5,444		$	—
Reclassification (from) to distributions in excess of/undistributed net investment income (to) from accumulated net realized loss	$	(1	)	$	(34	)	$	(881	)	$	126		$	(21	)	$	(3	)
Reclassification (from) to distributions in excess of/undistributed net investment income (to) from capital paid in on shares of beneficial interest		(1	)		(19	)		13			(166	)		(87	)		(6	)
Gross unrealized appreciation on investment securities	$	10,759		$	154,740		$	573,613		$	179,571		$	97,090		$	6,487
Gross unrealized depreciation on investment securities		(399	)		(1,569	)		(55,616	)		(54,234	)		(12,958	)		(393	)
Net unrealized appreciation on investment securities	$	10,360		$	153,171		$	517,997		$	125,337		$	84,132		$	6,094
Cost of investment securities	$	792,684		$	2,912,510		$	8,746,153		$	2,883,273		$	1,423,333		$	122,972

*	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, 2014						Year ended July 31, 2013
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	7,558	$	—	$	7,558	$	7,907	$	123	$	8,030
Class F-1		198		—		198		208		4		212
Class F-2		404		—		404		422		7		429
Total	$	8,160	$	—	$	8,160	$	8,537	$	134	$	8,671

Limited Term Tax-Exempt Bond Fund of America

	Year ended July 31, 2014						Year ended July 31, 2013
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	64,709	$	—	$	64,709	$	65,825	$	492	$	66,317
Class B		46		—		46		79		1		80
Class C		767		—		767		1,081		12		1,093
Class F-1		2,895		—		2,895		3,150		25		3,175
Class F-2		4,223		—		4,223		4,116		31		4,147
Class R-6		3,418		—		3,418		3,000		18		3,018
Total	$	76,058	$	—	$	76,058	$	77,251	$	579	$	77,830

The Tax-Exempt Bond Fund of America

	Year ended July 31, 2014						Period ended July 31, 2013*
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	235,838	$	—	$	235,838	$	232,946	$	—	$	232,946
Class B		437		—		437		609		—		609
Class C		9,228		—		9,228		9,871		—		9,871
Class F-1		52,597		—		52,597		47,608		—		47,608
Class F-2		16,175		—		16,175		9,865		—		9,865
Class R-6		4,942		—		4,942		2,807		—		2,807
Total	$	319,217	$	—	$	319,217	$	303,706	$	—	$	303,706

	Year ended August 31, 2012
	Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued
Class A	$	258,693	$	—	$	258,693
Class B		1,043		—		1,043
Class C		11,462		—		11,462
Class F-1		50,382		—		50,382
Class F-2		8,330		—		8,330
Class R-6^†		263		—		263
Total	$	330,173	$	—	$	330,173

See end of distributions tables for footnotes.

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Year ended July 31, 2014						Year ended July 31, 2013
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	99,609	$	—	$	99,609	$	100,902	$	—	$	100,902
Class B		283		—		283		450		—		450
Class C		5,699		—		5,699		6,057		—		6,057
Class F-1		7,824		—		7,824		7,852		—		7,852
Class F-2		7,621		—		7,621		5,011		—		5,011
Class R-6		3,742		—		3,742		1,513		—		1,513
Total	$	124,778	$	—	$	124,778	$	121,785	$	—	$	121,785

The Tax-Exempt Fund of California

	Year ended July 31, 2014						Period ended July 31, 2013*
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	45,341	$	—	$	45,341	$	44,754	$	—	$	44,754
Class B		81		—		81		113		—		113
Class C		2,261		—		2,261		2,534		—		2,534
Class F-1		2,450		—		2,450		2,537		—		2,537
Class F-2		3,515		—		3,515		3,049		—		3,049
Total	$	53,648	$	—	$	53,648	$	52,987	$	—	$	52,987

	Year ended August 31, 2012
	Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued
Class A	$	49,306	$	—	$	49,306
Class B		185		—		185
Class C		2,959		—		2,959
Class F-1		2,963		—		2,963
Class F-2		2,299		—		2,299
Total	$	57,712	$	—	$	57,712

American Funds Tax-Exempt Fund of New York

	Year ended July 31, 2014						Year ended July 31, 2013
	Distributions		Distributions		Total		Distributions		Distributions		Total
	from tax-exempt		from long-term		distributions		from tax-exempt		from long-term		distributions
Share class	income		capital gains		paid or accrued		income		capital gains		paid or accrued
Class A	$	3,002	$	—	$	3,002	$	3,102	$	—	$	3,102
Class B		2		—		2		6		—		6
Class C		163		—		163		160		—		160
Class F-1		34		—		34		54		—		54
Class F-2		470		—		470		415		—		415
Total	$	3,671	$	—	$	3,671	$	3,737	$	—	$	3,737

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

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

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 ranges of rates, net asset levels, gross income levels and annualized rates of average net assets for each fund are as follows:

	Rates						Net asset level (in billions)				Rates						Monthly gross income				For the year
Fund	Beginning with			Ending with			Up to		In excess of		Beginning with			Ending with			Up to		In excess of		ended July 31, 2014
American Funds Short-Term Tax-Exempt Bond Fund		.390	%		.290	%	$	.20	$	1.2		None			None			None		None		.365	%
Limited Term Tax-Exempt Bond Fund of America		.300			.150			.06		1.0		3.00	%		2.50	%	$	3,333,333	$	3,333,333		.247
The Tax-Exempt Bond Fund of America		.300			.120			.06		10.0		3.00			2.00			3,333,333		8,333,333		.247
American High-Income Municipal Bond Fund		.300			.150			.06		3.0		3.00			2.50			3,333,333		3,333,333		.332
The Tax-Exempt Fund of California		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.327
American Funds Tax-Exempt Fund of New York		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.365

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, 2014, total fees and expenses reimbursed by CRMC were $114,000. 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 further described below:

Distribution services — Each fund has plans of distribution for all share classes, except Class F-2 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						The Tax-Exempt Fund of California						American Funds Tax-Exempt Fund of New York
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	%		0.25	%		0.25	%		0.30	%
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, 2014, 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	$	875
Limited Term Tax-Exempt Bond Fund of America		—
The Tax-Exempt Bond Fund of America		2,802
American High-Income Municipal Bond Fund		—
The Tax-Exempt Fund of California		426
American Funds Tax-Exempt Fund of New York		—

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 funds’ 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, 2014, 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		$1,098		$192		$73
Class F-1		63		31		13
Class F-2		Not applicable		39		19
Total class-specific expenses		$1,161		$262		$105

Limited Term Tax-Exempt Bond Fund of America

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$7,738		$738			$258
Class B		25		1			Not applicable
Class C		433		13			22
Class F-1		293		134			59
Class F-2		Not applicable		174			79
Class R-6		Not applicable		—	*		61
Total class-specific expenses		$8,489		$1,060			$479

The Tax-Exempt Bond Fund of America

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$16,611		$2,175			$665
Class B		155		6			Not applicable
Class C		3,333		115			167
Class F-1		3,821		1,788			766
Class F-2		Not applicable		456			220
Class R-6		Not applicable		—	*		65
Total class-specific expenses		$23,920		$4,540			$1,883

64	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$5,373		$1,151			$219
Class B		74		4			Not applicable
Class C		1,517		83			76
Class F-1		440		203			88
Class F-2		Not applicable		179			81
Class R-6		Not applicable		—	*		39
Total class-specific expenses		$7,404		$1,620			$503

The Tax-Exempt Fund of California

Share class	Distribution services		Transfer agent services		Administrative services
Class A		$3,061		$282		$122
Class B		27		1		Not applicable
Class C		773		19		39
Class F-1		171		75		34
Class F-2		Not applicable		103		46
Total class-specific expenses		$4,032		$480		$241

American Funds Tax-Exempt Fund of New York

Share class	Distribution services		Transfer agent services			Administrative services
Class A		$158		$35			$10
Class B		1		—	*		Not applicable
Class C		75		3			4
Class F-1		2		1			1
Class F-2		Not applicable		14			7
Total class-specific expenses		$236		$53			$22

*Amount less than one thousand.

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 in the funds’ statement of operations includes the current fees (either paid in cash or deferred) and a net increase in the value of the following deferred amounts (dollars in thousands):

Fund	Current fees		Increase in value of deferred amounts			Total trustees’ compensation
American Funds Short-Term Tax-Exempt Bond Fund	$	5	$	5		$	10
Limited Term Tax-Exempt Bond Fund of America		21		24			45
The Tax-Exempt Bond Fund of America		67		49			116
American High-Income Municipal Bond Fund		20		19			39
The Tax-Exempt Fund of California		11		23			34
American Funds Tax-Exempt Fund of New York		1		—	*		1

*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.

American Funds Tax-Exempt 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

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

Year ended July 31, 2014

Class A	$	266,682		26,075	$	6,625		647	$	(240,284	)		(23,484	)	$	33,023			3,238
Class F-1		12,729		1,244		198		19		(28,743	)		(2,807	)		(15,816	)		(1,544	)
Class F-2		47,396		4,630		342		34		(38,654	)		(3,781	)		9,084			883
Total net increase (decrease)	$	326,807		31,949	$	7,165		700	$	(307,681	)		(30,072	)	$	26,291			2,577

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

Limited Term Tax-Exempt Bond Fund of America

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

Year ended July 31, 2014

Class A	$	487,274		30,443	$	59,752		3,729	$	(581,043	)		(36,342	)	$	(34,017	)		(2,170	)
Class B		349		22		44		3		(1,603	)		(100	)		(1,210	)		(75	)
Class C		9,024		564		733		46		(21,570	)		(1,348	)		(11,813	)		(738	)
Class F-1		37,856		2,365		2,807		175		(59,138	)		(3,688	)		(18,475	)		(1,148	)
Class F-2		97,188		6,064		3,351		209		(67,054	)		(4,197	)		33,485			2,076
Class R-6		26,715		1,665		3,419		213		(29,920	)		(1,877	)		214			1
Total net increase (decrease)	$	658,406		41,123	$	70,106		4,375	$	(760,328	)		(47,552	)	$	(31,816	)		(2,054	)

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

66	American Funds Tax-Exempt Funds

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

Year ended July 31, 2014

Class A	$	675,556		53,456	$	213,622		16,921	$	(1,341,982	)		(107,292	)	$	(452,804	)		(36,915	)
Class B		650		52		418		33		(8,667	)		(691	)		(7,599	)		(606	)
Class C		39,872		3,153		8,663		687		(110,759	)		(8,853	)		(62,224	)		(5,013	)
Class F-1		527,089		41,931		51,868		4,115		(905,891	)		(71,801	)		(326,934	)		(25,755	)
Class F-2		442,389		34,817		13,572		1,071		(136,652	)		(10,912	)		319,309			24,976
Class R-6		55,842		4,409		4,942		391		(15,362	)		(1,236	)		45,422			3,564
Total net increase (decrease)	$	1,741,398		137,818	$	293,085		23,218	$	(2,519,313	)		(200,785	)	$	(484,830	)		(39,749	)

Period ended July 31, 2013²
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-6³		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

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, 2014

Class A	$	438,553		29,734	$	92,218		6,274	$	(526,377	)		(36,264	)	$	4,394			(256	)
Class B		548		37		263		18		(4,620	)		(318	)		(3,809	)		(263	)
Class C		40,695		2,756		5,263		358		(53,623	)		(3,683	)		(7,665	)		(569	)
Class F-1		80,187		5,464		7,646		520		(91,186	)		(6,184	)		(3,353	)		(200	)
Class F-2		195,919		13,224		6,484		439		(114,860	)		(7,734	)		87,543			5,929
Class R-6		43,501		2,949		3,742		253		(1,706	)		(119	)		45,537			3,083
Total net increase (decrease)	$	799,403		54,164	$	115,616		7,862	$	(792,372	)		(54,302	)	$	122,647			7,724

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

See end of capital share transactions tables for footnotes.

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

Year ended July 31, 2014

Class A	$	135,776		7,971	$	39,000		2,290	$	(216,325	)		(12,820	)	$	(41,549	)		(2,559	)
Class B		16		1		77		4		(1,265	)		(75	)		(1,172	)		(70	)
Class C		8,353		488		2,086		123		(24,821	)		(1,472	)		(14,382	)		(861	)
Class F-1		13,404		790		2,324		137		(28,125	)		(1,657	)		(12,397	)		(730	)
Class F-2		39,559		2,309		2,868		168		(27,845	)		(1,652	)		14,582			825
Total net increase (decrease)	$	197,108		11,559	$	46,355		2,722	$	(298,381	)		(17,676	)	$	(54,918	)		(3,395	)

Period ended July 31, 2013²
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

American Funds Tax-Exempt Fund of New York

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

Year ended July 31, 2014

Class A	$	20,842		2,022	$	1,772		172		$	(24,070	)		(2,345	)	$	(1,456	)		(151	)
Class B		13		2		2		—	⁴		(138	)		(14	)		(123	)		(12	)
Class C		2,012		196		153		15			(2,385	)		(233	)		(220	)		(22	)
Class F-1		263		26		15		1			(614	)		(60	)		(336	)		(33	)
Class F-2		6,340		614		406		39			(5,722	)		(554	)		1,024			99
Total net increase (decrease)	$	29,470		2,860	$	2,348		227		$	(32,929	)		(3,206	)	$	(1,111	)		(119	)

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

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

68	American Funds Tax-Exempt Funds

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, 2014, as follows (dollars in thousands):

Fund	Purchases		Sales
American Funds Short-Term Tax-Exempt Bond Fund	$	199,213	$	130,298
Limited Term Tax-Exempt Bond Fund of America		252,553		304,784
The Tax-Exempt Bond Fund of America		828,522		1,539,958
American High-Income Municipal Bond Fund		618,593		622,348
The Tax-Exempt Fund of California		112,919		212,426
American Funds Tax-Exempt Fund of New York		28,192		29,338

9. Ownership concentration

At July 31, 2014, 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
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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 reimbursements			Ratio of expenses to average net assets after reimbursements³			Ratio of net income to average net assets³
Class A:
7/31/2014	$	10.21	$	.11	$	.04		$	.15		$	(.11	)	$	—		$	(.11	)	$	10.25		1.43	%	$	737		.58	%		.58	%		1.04	%
7/31/2013		10.32		.13		(.11	)		.02			(.13	)		—	⁴		(.13	)		10.21		.16			701		.59			.59			1.21
7/31/2012		10.23		.13		.09			.22			(.13	)		—			(.13	)		10.32		2.17			606		.59			.59			1.27
7/31/2011		10.20		.12		.03			.15			(.12	)		—			(.12	)		10.23		1.53			520		.60			.60			1.24
7/31/2010		10.00		.10		.20			.30			(.10	)		—			(.10	)		10.20		3.06			412		.65			.53			1.00
Class F-1:
7/31/2014		10.21		.08		.04			.12			(.08	)		—			(.08	)		10.25		1.19			14		.82			.82			.80
7/31/2013		10.32		.10		(.11	)		(.01	)		(.10	)		—	⁴		(.10	)		10.21		(.08	)		30		.84			.84			.96
7/31/2012		10.23		.11		.09			.20			(.11	)		—			(.11	)		10.32		1.98			18		.78			.78			1.09
7/31/2011		10.20		.11		.03			.14			(.11	)		—			(.11	)		10.23		1.34			14		.79			.79			1.04
7/31/2010^5,6		10.00		.10		.19			.29			(.09	)		—			(.09	)		10.20		2.93			5		.79	⁷		.64	⁷		1.06	⁷
Class F-2:
7/31/2014		10.21		.11		.04			.15			(.11	)		—			(.11	)		10.25		1.47			46		.54			.54			1.07
7/31/2013		10.32		.13		(.11	)		.02			(.13	)		—	⁴		(.13	)		10.21		.19			37		.56			.56			1.23
7/31/2012		10.23		.14		.09			.23			(.14	)		—			(.14	)		10.32		2.24			15		.52			.52			1.33
7/31/2011		10.20		.13		.03			.16			(.13	)		—			(.13	)		10.23		1.58			17		.55			.55			1.28
7/31/2010^5,8		10.00		.13		.18			.31			(.11	)		—			(.11	)		10.20		3.16			8		.51	⁷		.45	⁷		1.39	⁷

	Year ended July 31
		2014	2013	2012	2011	2010
Portfolio turnover rate for all share classes		20%	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 from CRMC. During one 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	Amount less than $.01.
⁵	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁶	Class F-1 shares were offered beginning August 27, 2009.
⁷	Annualized.
⁸	Class F-2 shares were offered beginning August 12, 2009.

See Notes to Financial Statements

70	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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 return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2014	$	15.94	$	.40	$	.16		$	.56		$	(.40	)	$	—		$	(.40	)	$	16.10		3.56	%	$	2,615		.60	%		2.51	%
7/31/2013		16.36		.40		(.42	)		(.02	)		(.40	)		—	³		(.40	)		15.94		(.13	)		2,625		.60			2.45
7/31/2012		15.85		.44		.51			.95			(.44	)		—			(.44	)		16.36		6.06			2,549		.60			2.72
7/31/2011		15.78		.46		.07			.53			(.46	)		—			(.46	)		15.85		3.41			2,232		.60			2.93
7/31/2010		15.11		.48		.67			1.15			(.48	)		—			(.48	)		15.78		7.71			2,316		.61			3.08
Class B:
7/31/2014		15.94		.29		.16			.45			(.29	)		—			(.29	)		16.10		2.85			2		1.29			1.83
7/31/2013		16.36		.29		(.42	)		(.13	)		(.29	)		—	³		(.29	)		15.94		(.82	)		3		1.29			1.78
7/31/2012		15.85		.33		.51			.84			(.33	)		—			(.33	)		16.36		5.33			6		1.30			2.04
7/31/2011		15.78		.35		.07			.42			(.35	)		—			(.35	)		15.85		2.69			10		1.31			2.24
7/31/2010		15.11		.37		.67			1.04			(.37	)		—			(.37	)		15.78		6.96			21		1.31			2.40
Class C:
7/31/2014		15.94		.28		.16			.44			(.28	)		—			(.28	)		16.10		2.80			38		1.34			1.78
7/31/2013		16.36		.28		(.42	)		(.14	)		(.28	)		—	³		(.28	)		15.94		(.87	)		49		1.34			1.72
7/31/2012		15.85		.32		.51			.83			(.32	)		—			(.32	)		16.36		5.27			75		1.34			1.99
7/31/2011		15.78		.34		.07			.41			(.34	)		—			(.34	)		15.85		2.64			69		1.36			2.19
7/31/2010		15.11		.36		.67			1.03			(.36	)		—			(.36	)		15.78		6.91			91		1.36			2.34
Class F-1:
7/31/2014		15.94		.39		.16			.55			(.39	)		—			(.39	)		16.10		3.49			105		.67			2.45
7/31/2013		16.36		.39		(.42	)		(.03	)		(.39	)		—	³		(.39	)		15.94		(.22	)		122		.69			2.37
7/31/2012		15.85		.43		.51			.94			(.43	)		—			(.43	)		16.36		6.00			132		.65			2.67
7/31/2011		15.78		.45		.07			.52			(.45	)		—			(.45	)		15.85		3.37			104		.65			2.89
7/31/2010		15.11		.47		.67			1.14			(.47	)		—			(.47	)		15.78		7.68			112		.63			3.06
Class F-2:
7/31/2014		15.94		.43		.16			.59			(.43	)		—			(.43	)		16.10		3.75			183		.42			2.69
7/31/2013		16.36		.43		(.42	)		.01			(.43	)		—	³		(.43	)		15.94		.05			148		.42			2.64
7/31/2012		15.85		.47		.51			.98			(.47	)		—			(.47	)		16.36		6.28			162		.38			2.94
7/31/2011		15.78		.49		.07			.56			(.49	)		—			(.49	)		15.85		3.65			132		.38			3.15
7/31/2010		15.11		.52		.67			1.19			(.52	)		—			(.52	)		15.78		7.97			125		.36			3.35
Class R-6:
7/31/2014		15.94		.45		.16			.61			(.45	)		—			(.45	)		16.10		3.86			133		.31			2.80
7/31/2013		16.36		.45		(.42	)		.03			(.45	)		—	³		(.45	)		15.94		.16			132		.31			2.72
7/31/2012^4,5		16.32		.10		.05			.15			(.11	)		—			(.11	)		16.36		.90			43		.07			.64

	Year ended July 31
		2014	2013	2012	2011	2010
Portfolio turnover rate for all share classes		9%	13%	9%	14%	13%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Amount less than $.01.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	Class R-6 shares were offered beginning May 11, 2012.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

The Tax-Exempt Bond Fund of America

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period			Net investment income		Net gains (losses) 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:
7/31/2014	$	12.44		$	.45	$	.48		$	.93		$	(.45	)	$	12.92		7.60	%	$	6,772		.56	%		.56	%		3.57	%
7/31/2013^4,5		13.08			.40		(.64	)		(.24	)		(.40	)		12.44		(1.93	)		6,984		.55	⁶		.55	⁶		3.35	⁶
8/31/2012		12.26			.47		.82			1.29			(.47	)		13.08		10.71			7,445		.55			.55			3.73
8/31/2011		12.53			.48		(.27	)		.21			(.48	)		12.26		1.85			6,557		.55			.55			4.01
8/31/2010		11.82			.48		.71			1.19			(.48	)		12.53		10.23			7,740		.54			.54			3.92
8/31/2009		12.03			.50		(.21	)		.29			(.50	)		11.82		2.65			7,130		.56			.56			4.39
Class B:
7/31/2014		12.44			.35		.48			.83			(.35	)		12.92		6.81			13		1.30			1.30			2.84
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
8/31/2012		12.26			.38		.82			1.20			(.38	)		13.08		9.90			30		1.29			1.29			3.01
8/31/2011		12.53			.39		(.27	)		.12			(.39	)		12.26		1.08			40		1.30			1.30			3.26
8/31/2010		11.82			.38		.71			1.09			(.38	)		12.53		9.41			78		1.30			1.30			3.18
8/31/2009		12.03			.41		(.21	)		.20			(.41	)		11.82		1.88			107		1.32			1.31			3.65
Class C:
7/31/2014		12.44			.35		.48			.83			(.35	)		12.92		6.75			325		1.35			1.35			2.79
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
8/31/2012		12.26			.37		.82			1.19			(.37	)		13.08		9.85			420		1.34			1.34			2.94
8/31/2011		12.53			.39		(.27	)		.12			(.39	)		12.26		1.03			370		1.35			1.35			3.21
8/31/2010		11.82			.38		.71			1.09			(.38	)		12.53		9.35			475		1.34			1.34			3.11
8/31/2009		12.03			.41		(.21	)		.20			(.41	)		11.82		1.83			399		1.36			1.36			3.58
Class F-1:
7/31/2014		12.44			.43		.48			.91			(.43	)		12.92		7.46			1,389		.68			.68			3.46
7/31/2013^4,5		13.08			.39		(.64	)		(.25	)		(.39	)		12.44		(2.05	)		1,659		.68	⁶		.68	⁶		3.21	⁶
8/31/2012		12.26			.46		.82			1.28			(.46	)		13.08		10.59			1,526		.66			.66			3.62
8/31/2011		12.53			.47		(.27	)		.20			(.47	)		12.26		1.73			1,356		.66			.66			3.90
8/31/2010		11.82			.46		.71			1.17			(.46	)		12.53		10.12			1,380		.64			.64			3.80
8/31/2009		12.03			.49		(.21	)		.28			(.49	)		11.82		2.56			976		.65			.64			4.31
Class F-2:
7/31/2014		12.44			.46		.48			.94			(.46	)		12.92		7.74			662		.42			.42			3.70
7/31/2013^4,5		13.08			.42		(.64	)		(.22	)		(.42	)		12.44		(1.81	)		327		.42	⁶		.42	⁶		3.49	⁶
8/31/2012		12.26			.49		.82			1.31			(.49	)		13.08		10.88			239		.40			.40			3.87
8/31/2011		12.53			.50		(.27	)		.23			(.50	)		12.26		1.99			196		.41			.41			4.15
8/31/2010		11.82			.50		.71			1.21			(.50	)		12.53		10.41			216		.37			.37			4.09
8/31/2009		12.03			.51		(.21	)		.30			(.51	)		11.82		2.80			253		.39			.39			4.36
Class R-6:
7/31/2014		12.44			.48		.48			.96			(.48	)		12.92		7.86			165		.31			.31			3.81
7/31/2013^4,5		13.08			.43		(.64	)		(.21	)		(.43	)		12.44		(1.71	)		115		.31	⁶		.31	⁶		3.58	⁶
8/31/2012^4,7		12.94			.14		.15			.29			(.15	)		13.08		2.25			42		.09			.09			1.15

	Year ended July 31	For the period 9/1/2012 to	Year ended August 31
	2014	7/31/2013^4,5	2012	2011	2010
Portfolio turnover rate for all share classes	10%	16%	14%	12%	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 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	In 2013, the fund changed its fiscal year-end from August to July.
⁶	Annualized.
⁷	Class R-6 shares were offered beginning May 11, 2012.

See Notes to Financial Statements

72	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2014	$	14.48	$	.68	$	.73		$	1.41		$	(.67	)	$	15.22		9.99	%	$	2,357		.68	%		4.59	%
7/31/2013		15.13		.63		(.65	)		(.02	)		(.63	)		14.48		(.25	)		2,246		.69			4.14
7/31/2012		13.78		.66		1.35			2.01			(.66	)		15.13		14.98			2,286		.68			4.64
7/31/2011		13.97		.67		(.19	)		.48			(.67	)		13.78		3.57			1,849		.64			4.86
7/31/2010		12.69		.66		1.28			1.94			(.66	)		13.97		15.50			2,109		.68			4.82
Class B:
7/31/2014		14.48		.57		.73			1.30			(.56	)		15.22		9.17			6		1.44			3.87
7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48		(.97	)		10		1.42			3.42
7/31/2012		13.78		.56		1.35			1.91			(.56	)		15.13		14.14			16		1.42			3.96
7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78		2.78			21		1.41			4.07
7/31/2010		12.69		.56		1.28			1.84			(.56	)		13.97		14.67			36		1.42			4.11
Class C:
7/31/2014		14.48		.56		.73			1.29			(.55	)		15.22		9.12			161		1.48			3.80
7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48		(1.02	)		161		1.46			3.37
7/31/2012		13.78		.55		1.35			1.90			(.55	)		15.13		14.09			170		1.46			3.86
7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78		2.73			137		1.46			4.03
7/31/2010		12.69		.55		1.28			1.83			(.55	)		13.97		14.60			163		1.46			4.03
Class F-1:
7/31/2014		14.48		.66		.73			1.39			(.65	)		15.22		9.87			178		.79			4.49
7/31/2013		15.13		.62		(.65	)		(.03	)		(.62	)		14.48		(.35	)		172		.79			4.04
7/31/2012		13.78		.65		1.35			2.00			(.65	)		15.13		14.89			191		.76			4.56
7/31/2011		13.97		.65		(.19	)		.46			(.65	)		13.78		3.45			146		.76			4.73
7/31/2010		12.69		.65		1.28			1.93			(.65	)		13.97		15.42			181		.75			4.75
Class F-2:
7/31/2014		14.48		.70		.73			1.43			(.69	)		15.22		10.15			223		.53			4.71
7/31/2013		15.13		.66		(.65	)		.01			(.66	)		14.48		(.09	)		126		.52			4.31
7/31/2012		13.78		.69		1.35			2.04			(.69	)		15.13		15.20			87		.49			4.81
7/31/2011		13.97		.69		(.19	)		.50			(.69	)		13.78		3.74			58		.48			5.03
7/31/2010		12.69		.68		1.28			1.96			(.68	)		13.97		15.72			50		.48			5.00
Class R-6:
7/31/2014		14.48		.72		.73			1.45			(.71	)		15.22		10.27			108		.42			4.82
7/31/2013		15.13		.68		(.65	)		.03			(.68	)		14.48		.02			58		.40			4.44
7/31/2012^3,4		14.86		.14		.28			.42			(.15	)		15.13		2.85			13		.08			1.00

	Year ended July 31
		2014	2013	2012	2011	2010
Portfolio turnover rate for all share classes		24%	25%	20%	18%	15%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁴	Class R-6 shares were offered beginning May 11, 2012.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

The Tax-Exempt Fund of California

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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:
7/31/2014	$	16.72	$	.63	$	.80		$	1.43		$	(.63	)	$	17.52		8.72	%	$	1,265		.63	%		.63	%		3.72	%
7/31/2013^4,5		17.54		.59		(.82	)		(.23	)		(.59	)		16.72		(1.45	)		1,250		.63	⁶		.63	⁶		3.64	⁶
8/31/2012		16.32		.66		1.22			1.88			(.66	)		17.54		11.70			1,334		.63			.63			3.89
8/31/2011		16.63		.65		(.31	)		.34			(.65	)		16.32		2.24			1,218		.64			.64			4.08
8/31/2010		15.31		.64		1.32			1.96			(.64	)		16.63		13.07			1,442		.62			.62			4.04
8/31/2009		15.79		.67		(.48	)		.19			(.67	)		15.31		1.49			1,311		.63			.62			4.59
Class B:
7/31/2014		16.72		.51		.79			1.30			(.50	)		17.52		7.93			2		1.38			1.38			3.00
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
8/31/2012		16.32		.53		1.22			1.75			(.53	)		17.54		10.89			5		1.37			1.37			3.17
8/31/2011		16.63		.53		(.31	)		.22			(.53	)		16.32		1.48			7		1.39			1.39			3.33
8/31/2010		15.31		.52		1.32			1.84			(.52	)		16.63		12.22			11		1.37			1.37			3.31
8/31/2009		15.79		.56		(.48	)		.08			(.56	)		15.31		.73			16		1.39			1.37			3.85
Class C:
7/31/2014		16.72		.50		.80			1.30			(.50	)		17.52		7.87			76		1.42			1.42			2.94
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
8/31/2012		16.32		.52		1.22			1.74			(.52	)		17.54		10.83			101		1.42			1.42			3.10
8/31/2011		16.63		.52		(.31	)		.21			(.52	)		16.32		1.42			91		1.44			1.44			3.28
8/31/2010		15.31		.51		1.32			1.83			(.51	)		16.63		12.17			116		1.42			1.42			3.24
8/31/2009		15.79		.55		(.48	)		.07			(.55	)		15.31		.68			105		1.43			1.42			3.79
Class F-1:
7/31/2014		16.72		.61		.80			1.41			(.61	)		17.52		8.59			65		.76			.76			3.60
7/31/2013^4,5		17.54		.56		(.82	)		(.26	)		(.56	)		16.72		(1.58	)		74		.77	⁶		.77	⁶		3.50	⁶
8/31/2012		16.32		.64		1.22			1.86			(.64	)		17.54		11.59			82		.73			.73			3.79
8/31/2011		16.63		.64		(.31	)		.33			(.64	)		16.32		2.13			82		.74			.74			3.98
8/31/2010		15.31		.63		1.32			1.95			(.63	)		16.63		12.97			108		.70			.70			3.97
8/31/2009		15.79		.65		(.48	)		.17			(.65	)		15.31		1.41			113		.71			.70			4.52
Class F-2:
7/31/2014		16.72		.65		.80			1.45			(.65	)		17.52		8.85			110		.51			.51			3.84
7/31/2013^4,5		17.54		.60		(.82	)		(.22	)		(.60	)		16.72		(1.35	)		91		.51	⁶		.51	⁶		3.77	⁶
8/31/2012		16.32		.68		1.22			1.90			(.68	)		17.54		11.87			74		.48			.48			4.02
8/31/2011		16.63		.67		(.31	)		.36			(.67	)		16.32		2.38			41		.50			.50			4.22
8/31/2010		15.31		.67		1.32			1.99			(.67	)		16.63		13.27			46		.43			.43			4.27
8/31/2009		15.79		.69		(.48	)		.21			(.69	)		15.31		1.67			99		.45			.45			4.61

Year ended
July 31

For the period
9/1/2012 to

Year ended August 31

2014

7/31/2013^4,5

2012

2011

2010

2009

Portfolio turnover rate for all share classes

12%

15%

10%

18%

17%

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	In 2013, the fund changed its fiscal year-end from August to July.
⁶	Annualized.

See Notes to Financial Statements

74	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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:
7/31/2014	$	10.21	$	.31	$	.37		$	.68		$	(.31	)	$	10.58		6.83	%	$	101,874		.73	%		.63	%		3.07	%
7/31/2013		10.85		.31		(.64	)		(.33	)		(.31	)		10.21		(3.16	)		99,811		.66			.59			2.88
7/31/2012		9.98		.32		.87			1.19			(.32	)		10.85		12.11			106,145		.76			.63			3.06
7/31/2011^4,5		10.00		.21		(.03	)		.18			(.20	)		9.98		1.83			62,229		.97	⁶		.67	⁶		2.82	⁶
Class B:
7/31/2014		10.21		.23		.37			.60			(.23	)		10.58		5.98			51		1.51			1.44			2.29
7/31/2013		10.85		.22		(.64	)		(.42	)		(.22	)		10.21		(4.00	)		174		1.53			1.46			1.99
7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85		11.18			271		1.59			1.45			2.24
7/31/2011^4,5		10.00		.15		(.03	)		.12			(.14	)		9.98		1.24			120		1.76	⁶		1.48	⁶		2.21	⁶
Class C:
7/31/2014		10.21		.22		.37			.59			(.22	)		10.58		5.89			7,809		1.60			1.51			2.19
7/31/2013		10.85		.21		(.64	)		(.43	)		(.21	)		10.21		(4.04	)		7,763		1.58			1.50			1.96
7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85		11.12			6,875		1.62			1.50			2.17
7/31/2011^4,5		10.00		.15		(.03	)		.12			(.14	)		9.98		1.26			2,103		1.75	⁶		1.55	⁶		2.27	⁶
Class F-1:
7/31/2014		10.21		.31		.37			.68			(.31	)		10.58		6.77			1,072		.77			.68			3.03
7/31/2013		10.85		.29		(.64	)		(.35	)		(.29	)		10.21		(3.36	)		1,372		.86			.79			2.67
7/31/2012		9.98		.31		.87			1.18			(.31	)		10.85		11.95			2,392		.86			.74			2.94
7/31/2011^4,5		10.00		.20		(.03	)		.17			(.19	)		9.98		1.76			872		1.03	⁶		.78	⁶		2.71	⁶
Class F-2:
7/31/2014		10.21		.32		.37			.69			(.32	)		10.58		6.89			15,959		.66			.57			3.13
7/31/2013		10.85		.31		(.64	)		(.33	)		(.31	)		10.21		(3.14	)		14,378		.64			.57			2.90
7/31/2012		9.98		.33		.87			1.20			(.33	)		10.85		12.21			12,983		.63			.53			3.13
7/31/2011^4,5		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 11/1/2010 to

2014

2013

2012

7/31/2011^4,5

Portfolio turnover rate for all share classes

25%

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, if any, of certain reimbursements from CRMC. During the periods shown, CRMC reimbursed other fees and expenses.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	For the period November 1, 2010, commencement of operations, through July 31, 2011.
⁶	Annualized.

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, The Tax-Exempt Fund of California 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the “Funds”) at July 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the periods presented (other than as noted below for The Tax-Exempt Fund of California), 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, 2014 by correspondence with the custodians and brokers, provide a reasonable basis for our opinion. The financial statements of The Tax-Exempt Fund of California as of July 31, 2013, and for the fiscal years ended through July 31, 2013 as appearing herein, were audited by other auditors whose report dated September 9, 2013, expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Los Angeles, California
September 9, 2014

76	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, 2014, through July 31, 2014).

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:

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 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.

American Funds Tax-Exempt Funds

Expense examples (continued)

American Funds Short-Term Tax-Exempt Bond Fund

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,005.39	$	2.88		.58	%
Class A – assumed 5% return		1,000.00		1,021.92		2.91		.58
Class F-1 – actual return		1,000.00		1,004.12		4.07		.82
Class F-1 – assumed 5% return		1,000.00		1,020.73		4.11		.82
Class F-2 – actual return		1,000.00		1,005.57		2.69		.54
Class F-2 – assumed 5% return		1,000.00		1,022.12		2.71		.54

Limited Term Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,015.67	$	3.00		.60	%
Class A – assumed 5% return		1,000.00		1,021.82		3.01		.60
Class B – actual return		1,000.00		1,012.22		6.44		1.29
Class B – assumed 5% return		1,000.00		1,018.40		6.46		1.29
Class C – actual return		1,000.00		1,011.97		6.68		1.34
Class C – assumed 5% return		1,000.00		1,018.15		6.71		1.34
Class F-1 – actual return		1,000.00		1,015.28		3.35		.67
Class F-1 – assumed 5% return		1,000.00		1,021.47		3.36		.67
Class F-2 – actual return		1,000.00		1,016.57		2.10		.42
Class F-2 – assumed 5% return		1,000.00		1,022.71		2.11		.42
Class R-6 – actual return		1,000.00		1,017.12		1.55		.31
Class R-6 – assumed 5% return		1,000.00		1,023.26		1.56		.31

The Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,044.31	$	2.79		.55	%
Class A – assumed 5% return		1,000.00		1,022.07		2.76		.55
Class B – actual return		1,000.00		1,040.53		6.53		1.29
Class B – assumed 5% return		1,000.00		1,018.40		6.46		1.29
Class C – actual return		1,000.00		1,040.27		6.78		1.34
Class C – assumed 5% return		1,000.00		1,018.15		6.71		1.34
Class F-1 – actual return		1,000.00		1,043.68		3.40		.67
Class F-1 – assumed 5% return		1,000.00		1,021.47		3.36		.67
Class F-2 – actual return		1,000.00		1,045.05		2.08		.41
Class F-2 – assumed 5% return		1,000.00		1,022.76		2.06		.41
Class R-6 – actual return		1,000.00		1,045.55		1.57		.31
Class R-6 – assumed 5% return		1,000.00		1,023.26		1.56		.31

See end of expense examples tables for footnote.

78	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,065.55	$	3.43		.67	%
Class A – assumed 5% return		1,000.00		1,021.47		3.36		.67
Class B – actual return		1,000.00		1,061.81		7.11		1.39
Class B – assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class C – actual return		1,000.00		1,061.50		7.36		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		1,065.11		3.84		.75
Class F-1 – assumed 5% return		1,000.00		1,021.08		3.76		.75
Class F-2 – actual return		1,000.00		1,066.48		2.51		.49
Class F-2 – assumed 5% return		1,000.00		1,022.36		2.46		.49
Class R-6 – actual return		1,000.00		1,067.03		2.00		.39
Class R-6 – assumed 5% return		1,000.00		1,022.86		1.96		.39

The Tax-Exempt Fund of California

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,048.41	$	3.20		.63	%
Class A – assumed 5% return		1,000.00		1,021.67		3.16		.63
Class B – actual return		1,000.00		1,044.63		6.89		1.36
Class B – assumed 5% return		1,000.00		1,018.05		6.80		1.36
Class C – actual return		1,000.00		1,044.38		7.20		1.42
Class C – assumed 5% return		1,000.00		1,017.75		7.10		1.42
Class F-1 – actual return		1,000.00		1,047.78		3.81		.75
Class F-1 – assumed 5% return		1,000.00		1,021.08		3.76		.75
Class F-2 – actual return		1,000.00		1,049.08		2.54		.50
Class F-2 – assumed 5% return		1,000.00		1,022.32		2.51		.50

American Funds Tax-Exempt Fund of New York

	Beginning account value 2/1/2014		Ending account value 7/31/2014		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	1,044.67	$	3.19		.63	%
Class A – assumed 5% return		1,000.00		1,021.67		3.16		.63
Class B – actual return		1,000.00		1,040.49		7.29		1.44
Class B – assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class C – actual return		1,000.00		1,040.15		7.64		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		1,044.40		3.45		.68
Class F-1 – assumed 5% return		1,000.00		1,021.42		3.41		.68
Class F-2 – actual return		1,000.00		1,045.00		2.89		.57
Class F-2 – assumed 5% return		1,000.00		1,021.97		2.86		.57

*	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).

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 year ended July 31, 2014:

Fund	Exempt interest dividends
American Funds Short-Term Tax-Exempt Bond Fund	100	%
Limited Term Tax-Exempt Bond Fund of America	100
The Tax-Exempt Bond Fund of America	100
American High-Income Municipal Bond Fund	100
The Tax-Exempt Fund of California	100
American Funds Tax-Exempt Fund of New York	100

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2015, to determine the calendar year amounts to be included on their 2014 tax returns. Shareholders should consult their tax advisors.

80	American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement

The boards 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (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, 2015. The board approved the agreement following the recommendation of each fund’s Contracts Committee (the “committee”), which is composed of each 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 and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel. They considered the following factors, 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 data such as relevant market and fund indexes, over various periods through September 30, 2013. 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 and the Barclays Municipal Short 1-5 Years Index. They noted that the investment results for the fund were above the results of the Lipper average over the 9-month, one-year, three-year and lifetime periods, while below 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 and the Barclays Municipal Short-Intermediate 1-10 Years Index. They noted that the investment results for the fund were equal to or above the results of the Lipper average for the 9-month, one-, three- and 10-year periods (although below the results of the average for the five-year and lifetime periods), and were below the results of the Barclays index for all periods shown other than the three-year and five-year periods.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

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 and the Barclays Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for all periods considered, and were above the results of the Barclays index for the one-year and three-year periods (although below the results of the index for the 9-month, 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 and the Barclays High Yield Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for all periods shown, while below those of the Barclays index for all periods other than the 9-month period.

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California 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 and the Barclays California Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for all periods considered, and were above the results of the Barclays index for the three- and five-year periods (although below the results of the Barclays index for the 9-month, one-year and 10-year 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 and the Barclays New York Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for all periods considered, while below those of the Barclays index for all periods other than the lifetime period.

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.

82	American Funds Tax-Exempt Funds

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 below the median fees and expenses of the other funds included in its Lipper category described above. 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.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

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.

84	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 complex overseen by trustee	Other directorships³ held by trustee
William H. Baribault, 69		STEX	2010	CEO and President, Richard Nixon Foundation;	70	None
		LTEX	2010	former Chairman of the Board and CEO,
		TEBF	2010	Oakwood Enterprises (private investment
		AHIM	2010	and consulting)
		TEFCA	2010
		TEFNY	2010
James G. Ellis, 67		STEX	2009	Dean and Professor of Marketing, Marshall	70	Mercury General Corp.
		LTEX	2006	School of Business, University of Southern
		TEBF	2006	California
		AHIM	2006
		TEFCA	2006
		TEFNY	2010
Leonard R. Fuller, 68		STEX	1995	President and CEO, Fuller Consulting (financial	70	None
		LTEX	1994	management consulting firm)
		TEBF	1994
		AHIM	1994
		TEFCA	1994
		TEFNY	2010
R. Clark Hooper, 68		STEX	2005	Private investor	72	The Swiss Helvetia
Chairman of the Boards		LTEX	2005			Fund, Inc.
(Independent and Non-		TEBF	2005
Executive)		AHIM	2005
		TEFCA	2005
		TEFNY	2010
Merit E. Janow, 56		STEX	2010	Dean and Professor, Columbia University,	69	MasterCard
		LTEX	2010	School of International and Public Affairs		Incorporated;
		TEBF	2010			The NASDAQ Stock
		AHIM	2010			Market LLC;
		TEFCA	2009			Trimble Navigation
		TEFNY	2010			Limited
Laurel B. Mitchell, Ph.D., 59		STEX	2009	Clinical Professor and Director, Accounting	66	None
		LTEX	2010	Program, University of Redlands
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010
Frank M. Sanchez, 70		STEX	1999	Principal, The Sanchez Family Corporation dba	66	None
		LTEX	1999	McDonald’s Restaurants (McDonald’s licensee)
		TEBF	1999
		AHIM	1999
		TEFCA	1999
		TEFNY	2010
Margaret Spellings, 56		STEX	2009	President, George W. Bush Foundation; former	70	None
		LTEX	2010	President and CEO, Margaret Spellings &
		TEBF	2010	Company (public policy and strategic consulting);
		AHIM	2010	former President, U.S. Chamber Foundation and
		TEFCA	2010	Senior Advisor to the President and CEO, U.S.
		TEFNY	2010	Chamber of Commerce; former U.S. Secretary
				of Education, U.S. Department of Education

See page 87 for footnotes.

American Funds Tax-Exempt Funds

“Independent” trustees¹ (continued)

Name and age	Year first elected a trustee of the fund²			Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Steadman Upham, Ph.D., 65		STEX	2009	President and University Professor, The	69	None
		LTEX	2007	University of Tulsa
		TEBF	2007
		AHIM	2007
		TEFCA	2007
		TEFNY	2010

We are saddened by the loss of W. Scott Hedrick who passed away on November 3, 2013. Mr. Hedrick served as an independent board member on the boards of various American Funds since 2007. His wise counsel and friendship will be missed.

“Interested” trustee⁴

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 complex overseen by trustee	Other directorships³ held by trustee
Karl J. Zeile, 47		STEX	2011	Director, Capital Research and Management	6	None
Vice Chairman of the Board:		LTEX	2004	Company; Senior Vice President – Capital
STEX		TEBF	2009	Fixed Income Investors, Capital Research
Vice Chairman of the Board		AHIM	2008	and Management Company
and President: AHIM, TEFNY		TEFCA	2009
Vice Chairman of the Board		TEFNY	2010
and Vice President: LTEX, TEBF, TEFCA

Other officers⁵

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, 51		STEX	2009	Senior Vice President – Capital Fixed Income Investors, Capital Research and Management
President: STEX, LTEX		LTEX	1997	Company
Senior Vice President: TEBF		TEBF	1999
Neil L. Langberg, 61		STEX	1989	Senior Vice President – Capital Fixed Income Investors, Capital Research and Management Company; Senior Vice President – Capital Fixed Income Investors, Capital Guardian Trust Company⁶
President: TEBF, TEFCA		LTEX	1993
Senior Vice President: STEX,		TEBF	1985
LTEX, AHIM		AHIM	1994
		TEFCA	1986
Kristine M. Nishiyama, 44		STEX	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 Company⁶
Senior Vice President		LTEX	2003
		TEBF	2003
		AHIM	2003
		TEFCA	2003
		TEFNY	2010
Jerome H. Solomon, 51		TEFNY	2011	Vice President – Capital Fixed Income Investors, Capital Research Company⁶
Vice President

86	American Funds Tax-Exempt Funds

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
Courtney R. Taylor, 39		STEX	2006	Assistant Vice President – Fund Business Management Group, Capital Research and Management Company
Secretary		LTEX	2006
		TEBF	2006
		AHIM	2006
		TEFCA	2006
		TEFNY	2010
Karl C. Grauman, 46		STEX	2010	Vice President – Investment Operations, Capital Research and Management Company
Treasurer: TEBF, TEFCA,		LTEX	2012
TEFNY		TEBF	2010
Assistant Treasurer: STEX,		AHIM	2012
LTEX, AHIM		TEFCA	2010
		TEFNY	2010
Dori Laskin, 63		STEX	2010	Vice President – Investment Operations, Capital Research and Management Company
Treasurer: STEX, LTEX,		LTEX	2010
AHIM		TEBF	2010
Assistant Treasurer: TEBF,		AHIM	2010
TEFCA, TEFNY		TEFCA	2010
		TEFNY	2010
Steven I. Koszalka, 50		STEX	2010	Vice President – Fund Business Management Group, Capital Research and Management Company
Assistant Secretary		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010
Brian C. Janssen, 42		TEBF	2012	Vice President – Investment Operations, Capital Research and Management Company
Assistant Treasurer		TEFCA	2012
		TEFNY	2012

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
TEFCA	The Tax-Exempt Fund of California
TEFNY	American Funds Tax-Exempt Fund of New York

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.

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	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.
⁴	The term “interested” trustee refers to a trustee who is an “interested person” 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).
⁵	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.
⁶	Company affiliated with Capital Research and Management Company.

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

San Francisco, CA 94105-1409

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 firm

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, 2014, 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York, 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, 2014, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

88	American Funds Tax-Exempt Funds

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 26 years of investment experience, including 21 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 56% of 10-year periods and 57% of 20-year periods.² Our fund management fees have been among the lowest in the industry.³

¹	Portfolio manager experience as of December 31, 2013.
²	Based on Class A share results for rolling periods through December 31, 2013. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used).
³	Based on management fees for the 20-year period ended December 31, 2013, versus comparable Lipper categories, excluding funds of funds.

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:
		2013	$41,000
		2014	$50,000

	b) Audit-Related Fees:
		2013	None
		2014	None

	c) Tax Fees:
		2013	$0
		2014	$14,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

	d) All Other Fees:
		2013	None
		2014	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:
		2013	None
		2014	None

	c) Tax Fees:
		2013	$24,000
		2014	$52,000
		The tax fees consist of consulting services relating to the Registrant’s investments.

	d) All Other Fees:
		2013	$2,000
		2014	$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 $26,000 for fiscal year 2013 and $68,000 for fiscal year 2014. 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, Vice Chairman, President and Principal Executive Officer

	Date: September 30, 2014

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, Vice Chairman, President and

Principal Executive Officer

Date: September 30, 2014

By /s/ Karl C. Grauman

Karl C. Grauman, Treasurer and

Principal Financial Officer

Date: September 30, 2014

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