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)
6455 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (213) 486-9200
Date of fiscal year end: July 31
Date of reporting period: January 31, 2017
Steven I. Koszalka
American Funds Tax-Exempt Fund of New York
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
American Funds Short-Term Tax-Exempt Bond Fund®
Semi-annual reports for the six months |
American Funds Short-Term Tax-Exempt Bond Fund seeks to provide you with 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 you with 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 you with 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 you with a high level of current income exempt from regular federal income tax.
The Tax-Exempt Fund of California seeks to provide you with a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is preservation of capital.
American Funds Tax-Exempt Fund of New York seeks to provide you with a high level of current income exempt from regular federal, New York state and New York City income taxes. Its secondary objective is 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 85 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 December 31, 2016 (the most recent calendar quarter-end), and the total annual fund operating expense ratios as of the prospectus dated January 1, 2017.
Cumulative total returns | Average annual total returns | Gross | ||||||||||||||
Class A shares | 1 year | 5 years | 10 years/Lifetime* | expense ratios | ||||||||||||
Reflecting 2.50% maximum sales charge | ||||||||||||||||
American Funds Short-Term Tax-Exempt Bond Fund | –2.53 | % | 0.18 | % | 1.05 | % | 0.59 | % | ||||||||
Limited Term Tax-Exempt Bond Fund of America | –2.75 | 1.11 | 2.76 | 0.59 | ||||||||||||
Reflecting 3.75% maximum sales charge | ||||||||||||||||
The Tax-Exempt Bond Fund of America | –3.41 | 2.96 | 3.55 | 0.54 | ||||||||||||
American High-Income Municipal Bond Fund | –2.27 | 5.11 | 3.86 | 0.67 | ||||||||||||
The Tax-Exempt Fund of California | –3.86 | 3.41 | 3.75 | 0.60 | ||||||||||||
American Funds Tax-Exempt Fund of New York | –3.75 | 2.41 | 3.10 | 0.72 | † |
* | 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. |
† | The net expense ratio for American Funds Tax-Exempt Fund of New York is 0.69% as of the prospectus dated January 1, 2017. |
For other share class results, visit americanfunds.com.
The 10-year investment result for American Funds Short-Term Tax-Exempt Bond Fund includes 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 is not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of that period. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, 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. Investment results reflect the reimbursement, without which the results would have been lower. This reimbursement will be in effect through at least January 1, 2018, 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.
Fellow investors:
This report covers the results 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 for the six months ended January 31, 2017.
Volatility returned to the municipal bond market during the first half of the funds’ fiscal year as investors weighed the potential impact of the U.S. presidential election, strengthening economic conditions and rising interest rates. The market was further pressured by a record level of municipal bond issuance in 2016. Against this backdrop, all six funds registered declines, ranging from –0.92% for American Funds Short-Term Tax-Exempt Bond Fund to –3.77% for American High-Income Municipal Bond Fund. (See pages 4 through 10 for fund specific results and information.)
Economic and market overview
The first half of the fiscal year began as the prior ended, with a strong showing for municipal bond markets on the whole. In August, the unmanaged Bloomberg Barclays Municipal Bond Index, a broad measure of the tax-exempt investment-grade market (bonds rated BBB/Baa and above), recorded its 14th consecutive month of positive returns. By September, however, that trend reversed sharply and the tax-exempt market experienced a high level of volatility.
This abrupt shift in market sentiment was attributable to several factors, including upbeat economic news. Gross Domestic Product (GDP) rose an annualized rate of 3.5% in the third quarter of 2016, up from 1.4% in the second. Wages also improved, climbing nearly 3.0% year over year in December. In response to expectations for tax cuts and a pro-growth agenda from the new administration, bond yields spiked in November and December.
Inflation expectations also increased significantly. In December, U.S. consumer prices rose 2.1% on a year-over-year basis, the largest inflation bump since June 2014. In a widely anticipated move, the U.S. Federal Reserve raised the federal funds target rate to a range of 0.50%–0.75% in mid-December. Longer term interest rates also rose during the period, depressing U.S. Treasury bond prices. Tax-exempt bonds sold off along with the broader bond market.
Municipal bond issuance reached an all-time high in 2016, further pressuring the market. The year’s $445 billion in offerings — driven by refundings mid-year as issuers looked to take advantage of low borrowing costs — eclipsed the old record of $433 billion set in 2010. After experiencing inflows for the first 10 months of the year, muni fund flows turned negative in November and December, further contributing to the volatility.
In the closing weeks of the period however, fund flows turned positive
American Funds Tax-Exempt Funds | 1 |
again, helping drive a modest muni market rebound.
In general, municipal bonds of lower credit quality suffered more pronounced declines than higher rated issues, and longer term bonds tended to trail those with shorter maturities. Given the accelerating growth of the U.S. economy and anticipation of the Fed’s rate hike in December, most of the funds covered in this report entered the period with a conservative approach, maintaining a relatively short duration position. This helped mitigate the worst of the declines during the heightened volatility that characterized the final months of the calendar year. That said, the funds tended to lag the broader market during the rebound that occurred during the closing weeks of the period.
Looking ahead
As we look to the months ahead, there remains a great deal of uncertainty. The United States economy appears to be gaining momentum, and bond and equity markets alike have appeared to price in the potential effect of any shifts in policy under President Trump. That said, it is important to recognize that the details of future policy and their potential impact remain unclear. The possibility of both higher inflation and interest rates presents further challenges for municipal bond investors. Fed officials have in fact signaled that more rate increases are likely in 2017.
At this time we do not expect municipal bond returns to match the strong levels of the last few years. Faced with higher uncertainty and probable market volatility, we expect to maintain relatively neutral duration and curve investment positions. That being said, we believe that in the current low-yield environment we may continue to uncover potentially compelling income opportunities through comprehensive credit research.
We appreciate the trust you have placed in us and look forward to reporting back to you at the close of the fiscal year.
Sincerely,
Neil L. Langberg
President, American Funds Short-Term
Tax-Exempt Bond Fund, Limited Term
Tax-Exempt Bond Fund of America,
The Tax-Exempt Bond Fund of America
and The Tax-Exempt Fund of California
Jerry H. Solomon
President, American Funds Tax-Exempt
Fund of New York
Karl J. Zeile
President, American High-Income
Municipal Bond Fund
March 17, 2017
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 February 28, 2017. Both measures reflect the 2.50%/3.75% maximum sales charge. Each fund’s 30-day yield is calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula. The SEC yield reflects the rate at which each fund is earning income on its current portfolio of securities while the distribution rate reflects the funds’ past dividends paid to shareholders. Accordingly, the funds’ SEC yields and distribution rates may differ. The equivalent taxable yield assumes a 43.4% tax rate.1
Class A shares | SEC 30-day yield | Equivalent taxable yield | 12-month distribution rate | |||||||||
Reflecting 2.50% maximum sales charge | ||||||||||||
American Funds Short-Term Tax-Exempt Bond Fund | 1.06 | % | 1.87 | % | 1.06 | % | ||||||
Limited Term Tax-Exempt Bond Fund of America | 1.31 | 2.31 | 2.00 | |||||||||
Reflecting 3.75% maximum sales charge | ||||||||||||
The Tax-Exempt Bond Fund of America | 2.17 | 3.83 | 3.02 | |||||||||
American High-Income Municipal Bond Fund | 3.35 | 5.92 | 3.68 | |||||||||
The Tax-Exempt Fund of California | 2.01 | 4.10 | 2 | 2.96 | ||||||||
American Funds Tax-Exempt Fund of New York | 2.10 | 3 | 4.07 | 4 | 2.42 |
1 | Based on 2016 federal tax rates. For the year 2016, 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 | The SEC 30-day yield for American Funds Tax-Exempt Fund of New York is 2.10% with the fund’s reimbursement. |
4 | For investors in the 48.39% federal and New York state tax bracket. |
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. 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 funds’ 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 | 3 |
American Funds Short-Term Tax-Exempt Bond Fund
The fund registered a total return of –0.92% for the first half of the fiscal year, trailing the –0.68% return of the Lipper Short Municipal Debt Funds Average, a peer group measure. The fund also lagged the –0.88% decline of the Bloomberg Barclays Municipal Short 1–5 Years Index.
The fund paid monthly dividends totaling 6 cents a share for the six months. This amounts to a federally tax-exempt income return of 0.55% for investors who reinvested dividends. This is equivalent to a taxable income return of 0.97% for investors in the 43.4%1 maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.
In an uncertain market environment, the fund’s managers sought to provide relative stability. With yields near multiyear lows, the fund maintained its focus on high-quality issues of shorter duration. Municipal bonds on the whole struggled during the period; among the fund’s biggest detractors were revenue bonds supporting single-family housing and hospital facilities.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated taxable income below to determine your federal tax rate,2 then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 1.06% tax-exempt distribution rate3 as of January 31, 2017.
If your taxable income is … | … then your federal | The fund’s tax-exempt distribution rate of 1.06% is | ||||||||||||||
Single | Joint | tax rate is … | equivalent to a taxable rate of … | |||||||||||||
$ | 0 – | 9,275 | $ | 0 – | 18,550 | 10.0 | % | 1.18 | % | |||||||
9,276 – | 37,650 | 18,551 – | 75,300 | 15.0 | 1.25 | |||||||||||
37,651 – | 91,150 | 75,301 – | 151,900 | 25.0 | 1.41 | |||||||||||
91,151 – | 190,150 | 151,901 – | 231,450 | 28.0 | 1.47 | |||||||||||
190,151 – | 413,350 | 231,451 – | 413,350 | 36.8 | 1 | 1.68 | ||||||||||
413,351 – | 415,050 | 413,351 – | 466,950 | 38.8 | 1 | 1.73 | ||||||||||
Over 415,050 | Over 466,950 | 43.4 | 1 | 1.87 |
1 | For the year 2016, 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 2016 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 January 31, 2017. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 2.50%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
4 | American Funds Tax-Exempt Funds |
Limited Term Tax-Exempt Bond Fund of America
The fund recorded a decline of –1.75% for the six months ended January 31, a result that bested the –1.91% total return of the Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index. The fund’s result was in line with the –1.78% total return of the Lipper Short-Intermediate Municipal Debt Funds Average, a peer group measure.
The fund paid monthly dividends totaling 16 cents a share for the period. Those individuals who reinvested dividends received a federally tax-exempt income return of 1.00%. This is equivalent to a taxable income return of 1.77% for investors in the 43.4%1 maximum federal tax bracket.
The fund focuses primarily on investment-grade bonds (those rated BBB/Baa and above). The fund’s managers positioned the portfolio fairly conservatively, seeking to maintain a relatively short duration. This approach dampened returns to an extent as the broader municipal bond market experienced a solid rebound in the final weeks of the period.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated taxable income below to determine your federal tax rate,2 then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.02% tax-exempt distribution rate3 as of January 31, 2017.
If your taxable income is … | ... then your federal | The fund’s tax-exempt distribution rate of 2.02% is | ||||||||||||||
Single | Joint | tax rate is … | equivalent to a taxable rate of ... | |||||||||||||
$ | 0 – | 9,275 | $ | 0 – | 18,550 | 10.0 | % | 2.24 | % | |||||||
9,276 – | 37,650 | 18,551 – | 75,300 | 15.0 | 2.38 | |||||||||||
37,651 – | 91,150 | 75,301 – | 151,900 | 25.0 | 2.69 | |||||||||||
91,151 – | 190,150 | 151,901 – | 231,450 | 28.0 | 2.81 | |||||||||||
190,151 – | 413,350 | 231,451 – | 413,350 | 36.8 | 1 | 3.20 | ||||||||||
413,351 – | 415,050 | 413,351 – | 466,950 | 38.8 | 1 | 3.30 | ||||||||||
Over 415,050 | Over 466,950 | 43.4 | 1 | 3.57 |
1 | For the year 2016, 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 2016 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 January 31, 2017. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 2.50%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
American Funds Tax-Exempt Funds | 5 |
The Tax-Exempt Bond Fund of America
The fund logged a total return of –3.37% during the six-month period, a result that was in line with the –3.34% decline of the Bloomberg Barclays Municipal Bond Index. However, the fund outpaced the –3.59% total return of the Lipper General & Insured Municipal Debt Funds Average, a peer group measure.
During the period, the fund paid monthly dividends totaling 20 cents a share, amounting to a federally tax-exempt income return of 1.51% for investors who reinvested dividends. This is equivalent to a taxable income return of 2.67% for investors in the 43.4%1 maximum federal tax bracket. The fund does not invest in bonds subject to the Alternative Minimum Tax (AMT).
The fund’s managers continued on a relatively conservative path during the first half of the fiscal year, focusing on minimizing risk in an uncertain environment. They continue to seek out opportunities for incremental yield through deep credit research while remaining mindful of improving economic conditions and the potential for rising interest rates. At the close of the period about 93% of the portfolio consisted of revenue bonds. The largest concentrations were in holdings backing health care and transportation initiatives.
Amid declines across most areas of the market, holdings of bonds supporting hospital facilities were particularly detrimental to fund returns.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated taxable income below to determine your federal tax rate,2 then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.04% tax-exempt distribution rate3 as of January 31, 2017.
If your taxable income is … | ... then your federal | The fund’s tax-exempt distribution rate of 3.04% is | ||||||||||||||
Single | Joint | tax rate is … | equivalent to a taxable rate of ... | |||||||||||||
$ | 0 – | 9,275 | $ | 0 – | 18,550 | 10.0 | % | 3.38 | % | |||||||
9,276 – | 37,650 | 18,551 – | 75,300 | 15.0 | 3.58 | |||||||||||
37,651 – | 91,150 | 75,301 – | 151,900 | 25.0 | 4.05 | |||||||||||
91,151 – | 190,150 | 151,901 – | 231,450 | 28.0 | 4.22 | |||||||||||
190,151 – | 413,350 | 231,451 – | 413,350 | 36.8 | 1 | 4.81 | ||||||||||
413,351 – | 415,050 | 413,351 – | 466,950 | 38.8 | 1 | 4.97 | ||||||||||
Over 415,050 | Over 466,950 | 43.4 | 1 | 5.37 |
1 | For the year 2016, 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 2016 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 January 31, 2017. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
6 | American Funds Tax-Exempt Funds |
American High-Income Municipal Bond Fund
The fund registered a total return of –3.77% for the first half of its fiscal year. This result exceeded both the –3.91% loss of the Bloomberg Barclays High Yield Municipal Bond Index, and the –4.25% total return of the Lipper High Yield Municipal Debt Funds Average, a measure of the fund’s peer group.
For the six months, the fund paid monthly dividends totaling 29 cents a share, amounting to a federally tax-exempt income return of 1.83% for investors who reinvested dividends. This is equivalent to a taxable income return of 3.23% for investors in the 43.4%1 maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.
Rigorous credit research helped the fund mitigate the impact of some of the more extreme crosscurrents in the municipal bond market. Holdings of bonds backing hospitals, senior living facilities and airports posted some of the worst declines for the period.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated taxable income below to determine your federal tax rate,2 then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.73% tax-exempt distribution rate3 as of January 31, 2017.
If your taxable income is … | ... then your federal | The fund’s tax-exempt distribution rate of 3.73% is | ||||||||||||||
Single | Joint | tax rate is … | equivalent to a taxable rate of ... | |||||||||||||
$ | 0 – | 9,275 | $ | 0 – | 18,550 | 10.0 | % | 4.14 | % | |||||||
9,276 – | 37,650 | 18,551 – | 75,300 | 15.0 | 4.39 | |||||||||||
37,651 – | 91,150 | 75,301 – | 151,900 | 25.0 | 4.97 | |||||||||||
91,151 – | 190,150 | 151,901 – | 231,450 | 28.0 | 5.18 | |||||||||||
190,151 – | 413,350 | 231,451 – | 413,350 | 36.8 | 1 | 5.90 | ||||||||||
413,351 – | 415,050 | 413,351 – | 466,950 | 38.8 | 1 | 6.09 | ||||||||||
Over 415,050 | Over 466,950 | 43.4 | 1 | 6.59 |
1 | For the year 2016, 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 2016 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 January 31, 2017. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
American Funds Tax-Exempt Funds | 7 |
The Tax-Exempt Fund of California
The fund posted a total return of –3.66% for the six months. This result bested the –4.22% total return of the Lipper California Municipal Debt Funds Average, a peer group measure. However, the fund trailed the –3.54% return of the Bloomberg Barclays California Municipal Index.
For the period, the fund paid monthly dividends totaling 27 cents a share. Those investors who reinvested dividends received an income return of 1.48%. This is equivalent to a taxable income return of 3.02% for investors in the 50.93%1 effective combined federal and California state tax bracket.
Holdings of tax assessment bonds and issues backing hospitals and school districts dampened fund returns.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated 2016 taxable income below to determine your combined federal and California tax rate2, then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.99% tax-exempt distribution rate3 at January 31, 2017.
If your taxable income is … | … then your combined federal and California | The fund’s tax-exempt distribution rate of 2.99% is | ||||||||||||||
Single | Joint | state tax rate is … | equivalent to a taxable rate of ... | |||||||||||||
$ | 0 – | 8,015 | $ | 0 – | 16,030 | 10.90 | % | 3.36 | % | |||||||
8,016 – | 9,275 | 16,031 – | 18,550 | 11.80 | 3.39 | |||||||||||
9,276 – | 19,001 | 18,551 – | 38,002 | 16.70 | 3.59 | |||||||||||
19,002 – | 29,989 | 38,003 – | 59,978 | 18.40 | 3.66 | |||||||||||
29,990 – | 37,650 | 59,979 – | 75,300 | 20.10 | 3.74 | |||||||||||
37,651 – | 41,629 | 75,301 – | 83,258 | 29.50 | 4.24 | |||||||||||
41,630 – | 52,612 | 83,259 – | 105,224 | 31.00 | 4.33 | |||||||||||
52,613 – | 91,150 | 105,225 – | 151,900 | 31.98 | 4.40 | |||||||||||
91,151 – | 190,150 | 151,901 – | 231,450 | 34.70 | 4.58 | |||||||||||
190,151 – | 268,750 | 231,451 – | 413,350 | 42.68 | 1 | 5.22 | ||||||||||
268,751 – | 322,499 | – | 43.31 | 1 | 5.27 | |||||||||||
322,500 – | 413,350 | – | 43.94 | 1 | 5.33 | |||||||||||
– | 413,351 – | 466,950 | 44.49 | 1 | 5.39 | |||||||||||
413,351 – | 415,050 | – | 45.72 | 1 | 5.51 | |||||||||||
– | 466,951 – | 537,500 | 48.66 | 1 | 5.82 | |||||||||||
– | 537,501 – | 644,998 | 49.23 | 1 | 5.89 | |||||||||||
415,051 – | 537,498 | 644,999 – | 1,000,000 | 49.80 | 1 | 5.96 | ||||||||||
537,499 – | 1,000,000 | 1,000,001 – | 1,074,996 | 50.36 | 1 | 6.02 | ||||||||||
Over – | 1,000,000 | Over 1,074,996 | 50.93 | 1 | 6.09 |
1 |
For the year 2016, 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 50.93% marginal tax rate on their investment income. |
2 | Based on 2016 federal and 2016 California state 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. |
3 | The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of January 31, 2017. Capital gains distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
8 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
The fund recorded a total return of –3.55%, trailing the –3.22% decline of the Bloomberg Barclays New York Municipal Index. By way of comparison, the Lipper New York Municipal Debt Funds Average, a peer group measure, posted a –3.51% total return.
The fund paid monthly dividends totaling 14 cents a share for the six months. This represents an income return of 1.23% for those who reinvested dividends. For investors in the 48.39%1,2 combined effective federal and New York state tax bracket, this is equivalent to a taxable income return of 2.38%.
Revenue bonds supporting higher education and hospitals and general obligation bonds were among those holdings that detracted from the fund’s overall total return.
The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
Tax-exempt yields vs. taxable yields
Find your estimated 2016 taxable income below to determine your combined federal and New York state tax rate,2,3 then 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 rate4 at January 31, 2017.
If your taxable income is … | … then your combined federal and New York | The fund’s tax-exempt distribution rate of 2.43% is | ||||||||||||||
Single | Joint | state tax rate is … | equivalent to a taxable rate of ... | |||||||||||||
$ | 0 – | 8,450 | $ | 0 – | 17,050 | 13.60 | % | 2.81 | % | |||||||
8,451 – | 9,275 | 17,051 – | 18,550 | 14.05 | 2.83 | |||||||||||
9,276 – | 11,650 | 18,551 – | 23,450 | 18.83 | 2.99 | |||||||||||
11,651 – | 13,850 | 23,451 – | 27,750 | 19.46 | 3.02 | |||||||||||
13,851 – | 21,300 | 27,751 – | 42,750 | 20.02 | 3.04 | |||||||||||
21,301 – | 37,650 | 42,751 – | 75,300 | 20.48 | 3.06 | |||||||||||
37,651 – | 80,150 | 75,301 – | 151,900 | 29.84 | 3.46 | |||||||||||
80,151 – | 91,150 | – | 29.99 | 3.47 | ||||||||||||
– | 151,901 – | 160,500 | 32.64 | 3.61 | ||||||||||||
91,151 – | 190,150 | 160,501 – | 231,450 | 32.79 | 3.62 | |||||||||||
190,151 – | 214,000 | 231,451 – | 321,050 | 41.00 | 1 | 4.12 | ||||||||||
214,001 – | 413,350 | 321,051 – | 413,350 | 41.13 | 1 | 4.13 | ||||||||||
413,351 – | 415,050 | 413,351 – | 466,950 | 42.99 | 1 | 4.26 | ||||||||||
415,051 – | 1,070,350 | 466,951 – | 2,140,900 | 47.28 | 1 | 4.61 | ||||||||||
over – | 1,070,350 | over – | 2,140,900 | 48.39 | 1 | 4.71 |
1
|
For the year 2016, 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 48.39% marginal tax rate on their investment income. |
2 | 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. |
3 | Based on 2016 federal and 2016 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. |
4 | The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of January 31, 2017. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate. |
Fund results shown are for Class A shares at net asset value. If a sales charge (maximum 3.75%) had been deducted, 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. For current information and month-end results, visit americanfunds.com.
American Funds Tax-Exempt Funds | 9 |
Results at a glance
For periods ended January 31, 2017, with distributions reinvested
Cumulative total returns | Average annual total returns | |||||||||||||||
1 year | 5 years | 10 years | Lifetime1 | |||||||||||||
American Funds Short-Term Tax-Exempt Bond Fund (Class A shares) | –0.11 | % | 0.66 | % | — | 1.22 | % | |||||||||
Bloomberg Barclays Municipal Short 1–5 Years Index2 | 0.12 | 1.12 | — | 1.74 | ||||||||||||
Lipper Short Municipal Debt Funds Average | –0.10 | 0.59 | — | 1.13 | ||||||||||||
Limited Term Tax-Exempt Bond Fund of America (Class A shares) | –0.56 | 1.50 | 3.09 | % | 3.95 | |||||||||||
Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index3 | –0.36 | 1.77 | 3.58 | 4.20 | ||||||||||||
Lipper Short-Intermediate Municipal Debt Funds Average | –0.46 | 1.14 | 2.58 | 3.45 | ||||||||||||
The Tax-Exempt Bond Fund of America (Class A shares) | –0.25 | 3.25 | 4.01 | 6.49 | ||||||||||||
Bloomberg Barclays Municipal Bond Index | –0.28 | 2.94 | 4.34 | — | 4 | |||||||||||
Lipper General & Insured Municipal Debt Funds Average | –0.45 | 2.94 | 3.65 | 6.24 | ||||||||||||
American High-Income Municipal Bond Fund (Class A shares) | 1.04 | 5.38 | 4.31 | 5.50 | ||||||||||||
Bloomberg Barclays Municipal Bond Index | –0.28 | 2.94 | 4.34 | 5.38 | ||||||||||||
Bloomberg Barclays High Yield Municipal Bond Index | 3.85 | 5.44 | 4.14 | — | 4 | |||||||||||
Lipper High Yield Municipal Debt Funds Average | 0.66 | 4.65 | 3.42 | 4.99 | ||||||||||||
The Tax-Exempt Fund of California (Class A shares) | –0.75 | 3.70 | 4.20 | 5.53 | ||||||||||||
Bloomberg Barclays California Municipal Index | –0.45 | 3.48 | 4.54 | — | 4 | |||||||||||
Lipper California Municipal Debt Funds Average | –0.51 | 3.63 | 3.98 | 5.53 | ||||||||||||
American Funds Tax-Exempt Fund of New York (Class A shares) | –0.24 | 2.75 | — | 3.80 | ||||||||||||
Bloomberg Barclays New York Municipal Index | –0.26 | 2.93 | — | 3.62 | ||||||||||||
Lipper New York Municipal Debt Funds Average | –0.02 | 2.68 | — | 3.33 |
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 | Bloomberg 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. |
3 | Bloomberg 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. |
4 | This index did not exist at the fund’s inception. |
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper.
10 | American Funds Tax-Exempt Funds |
American Funds Short-Term Tax-Exempt Bond Fund | unaudited |
Summary investment portfolio January 31, 2017 |
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/or 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. |
Bonds, notes & other debt instruments 91.44% | Principal amount (000) | Value (000) | ||||||
Alabama 2.28% | ||||||||
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021) | $ | 9,500 | $ | 10,185 | ||||
Federal Aid Highway Fin. Auth., Federal Highway Grant Anticipation Bonds, Series 2012, 5.00% 2018 | 3,315 | 3,519 | ||||||
Other securities | 5,372 | |||||||
19,076 | ||||||||
California 10.54% | ||||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 1.56% 2045 (put 2023)1 | 6,600 | 6,551 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-E-3, 1.33% 2047 (put 2019)1 | 3,000 | 2,995 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-G, 1.26% 2034 (put 2020)1 | 2,000 | 2,001 | ||||||
Health Facs. Fncg. Auth., Rev. Bonds (Sutter Health), Series 2016-C, 1.00% 2053 (put 2019) | 5,000 | 4,933 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2009-C, 5.00% 2034 (put 2022) | 2,200 | 2,514 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-B, 5.00% 2043 (put 2017) | 1,145 | 1,177 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-D, 5.00% 2043 (put 2020) | 1,500 | 1,676 | ||||||
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2013-A-2, 1.043% 2047 (put 2019)1 | 3,500 | 3,483 | ||||||
Los Angeles County, Metropolitan Transportation Auth., Proposition A, Sales Tax Rev. Ref. Bonds, Series 2013-A, 5.00% 2018 | 3,000 | 3,174 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Hebrew Home for Aged Disabled), Series 2016, 3.50% 2021 | 3,350 | 3,504 | ||||||
Other securities | 56,183 | |||||||
88,191 | ||||||||
Connecticut 1.54% | ||||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2014-C-1, 4.00% 2044 | 825 | 866 | ||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2016-E-1, 3.50% 2046 | 1,300 | 1,366 | ||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, 4.00% 2044 | 1,345 | 1,396 | ||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2012-F-2, AMT, 2.75% 2035 | 570 | 577 | ||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-A, 3.50% 2044 | 3,240 | 3,372 |
American Funds Tax-Exempt Funds | 11 |
American Funds Short-Term Tax-Exempt Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Connecticut (continued) | ||||||||
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-C-1, 3.50% 2045 | $ | 1,925 | $ | 2,006 | ||||
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2016-A-1, 4.00% 2045 | 1,365 | 1,456 | ||||||
Other securities | 1,861 | |||||||
12,900 | ||||||||
Florida 4.40% | ||||||||
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2019 | 1,660 | 1,797 | ||||||
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 6.00% 2017 | 1,300 | 1,322 | ||||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2017 | 1,000 | 1,014 | ||||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2019 | 7,450 | 8,064 | ||||||
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Credit Group), Series 1999-B, 1.65% 2029 (put 2019) | 1,500 | 1,500 | ||||||
Health and Educational Facs. Auth., Rev. Bonds (Ascension Senior Credit Group), Series 2013-B-1, 1.375% 2038 (put 2019) | 2,225 | 2,203 | ||||||
Health Facs. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2001-A-2, 4.00% 2036 (put 2019) | 1,500 | 1,579 | ||||||
City of Lakeland, Energy System Rev. Ref. Bonds, Series 2012, 1.41% 20171 | 3,800 | 3,801 | ||||||
Other securities | 15,523 | |||||||
36,803 | ||||||||
Georgia 2.81% | ||||||||
Dev. Auth. Of Floyd County, Pollution Control Rev. Bonds (Georgia Power Company Plant Hammond Project), 2.35% 2022 (put 2020) | 4,000 | 4,007 | ||||||
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds (Third Indenture Series), Series 2014-A, 0.93% 2025 (put 2017)1 | 5,250 | 5,246 | ||||||
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds, Series 2014-B, 0.91% 2025 (put 2017)1 | 3,500 | 3,497 | ||||||
Other securities | 10,740 | |||||||
23,490 | ||||||||
Illinois 6.96% | ||||||||
Build Bonds (Sales Tax Rev. Bonds), Series June 2013, 5.00% 2020 | 3,500 | 3,848 | ||||||
Build Illinois Bonds, Sales Tax Rev. Ref. Bonds, Series 2016-D, 4.00% 2021 | 3,000 | 3,233 | ||||||
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 1998-B, 1.65% 2025 (put 2019) | 10,390 | 10,429 | ||||||
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 2001-B-1, 1.10% 2036 (put 2018) | 1,250 | 1,250 | ||||||
Housing Dev. Auth., Multifamily Housing Rev. Notes (Marshall Field Garden Apartment Homes), 1.66% 2050 (put 2025)1 | 3,400 | 3,366 | ||||||
Other securities | 36,171 | |||||||
58,297 | ||||||||
Indiana 2.54% | ||||||||
Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2001, AMT, 1.75% 2031 (put 2015) | 500 | 502 | ||||||
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2011-N, 5.00% 2017 | 2,500 | 2,509 | ||||||
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2016-A, 5.00% 2019 | 1,100 | 1,211 | ||||||
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2016-A, 5.00% 2022 | 2,500 | 2,905 | ||||||
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2016-A, 5.00% 2023 | 2,000 | 2,345 |
12 | American Funds Tax-Exempt Funds |
American Funds Short-Term Tax-Exempt Bond Fund
Principal amount (000) | Value (000) | |||||||
Health and Educational Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2005-A-5, 2.00% 2027 (put 2017) | $ | 2,615 | $ | 2,626 | ||||
Hobart Building Corp. (Lake County), First Mortgage Bonds, Series 2006, National insured, 6.50% 2029 (preref. 2020) | 6,000 | 6,897 | ||||||
Other securities | 2,276 | |||||||
21,271 | ||||||||
Kentucky 0.62% | ||||||||
State Property and Buildings Commission, Rev. Ref. Bonds (Project No. 112), Series 2016-B, 5.00% 2022 | 4,500 | 5,156 | ||||||
Maryland 1.03% | ||||||||
Montgomery County, G.O. Consolidated Public Improvement Bonds, Series 2011-A, 5.00% 2024 (preref. 2019) | 900 | 982 | ||||||
Other securities | 7,608 | |||||||
8,590 | ||||||||
Massachusetts 4.01% | ||||||||
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System), Series 2014-M-3, 1.18% 2038 (put 2018)1 | 8,315 | 8,315 | ||||||
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System), Series 2014-M-5, 0.96% 2038 (put 2018)1 | 1,075 | 1,075 | ||||||
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2016-J, AMT, 5.00% 2024 | 3,000 | 3,361 | ||||||
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2014-I, AMT, 5.00% 2021 | 3,000 | 3,272 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 167, 4.00% 2043 | 765 | 794 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 169, 4.00% 2044 | 820 | 855 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 172, 4.00% 2045 | 1,345 | 1,415 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 181, 4.00% 2044 | 965 | 1,025 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 183, 3.50% 2046 | 1,000 | 1,043 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 160, AMT, 3.75% 2034 | 400 | 411 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 162, 2.75% 2041 | 450 | 455 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 165, 2.65% 2041 | 1,445 | 1,463 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 171, 4.00% 2044 | 850 | 904 | ||||||
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 177, AMT, 4.00% 2039 | 3,220 | 3,402 | ||||||
Other securities | 5,740 | |||||||
33,530 | ||||||||
Michigan 4.32% | ||||||||
State Hospital Fin. Auth., Project Rev. Ref. Bonds (Ascension Health Credit Group), Series 2010-F3, 1.40% 2047 (put 2018) | 1,500 | 1,501 | ||||||
Other securities | 34,703 | |||||||
36,204 | ||||||||
Minnesota 1.20% | ||||||||
Housing Fin. Agcy., Homeownership Fin. Bonds (Mortgage-Backed Securities Program), Series 2011-G, 4.25% 2035 | 530 | 551 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2012-D, 4.00% 2040 | 730 | 756 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031 | 595 | 604 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-A, 4.00% 2038 | 1,115 | 1,187 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-C, AMT, 4.00% 2045 | 4,365 | 4,598 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-A, AMT, 4.00% 2041 | 870 | 921 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-E, AMT, 3.50% 2046 | 890 | 923 | ||||||
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2016-E, 4.00% 2047 | 250 | 267 | ||||||
Other securities | 269 | |||||||
10,076 | ||||||||
Nebraska 1.60% | ||||||||
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019) | 4,200 | 4,554 | ||||||
Other securities | 8,809 | |||||||
13,363 |
American Funds Tax-Exempt Funds | 13 |
American Funds Short-Term Tax-Exempt Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Nevada 1.56% | ||||||||
Clark County, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020) | $ | 5,500 | $ | 5,519 | ||||
Other securities | 7,576 | |||||||
13,095 | ||||||||
New Jersey 2.48% | ||||||||
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2014-PP, 5.00% 2019 | 4,000 | 4,196 | ||||||
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 4.00% 2017 | 3,500 | 3,562 | ||||||
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 5.00% 2018 | 2,000 | 2,105 | ||||||
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2016-1-A, AMT, 5.00% 2020 | 750 | 813 | ||||||
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2016-1-A, AMT, 5.00% 2021 | 2,000 | 2,187 | ||||||
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 5.00% 2018 | 2,250 | 2,368 | ||||||
Other securities | 5,521 | |||||||
20,752 | ||||||||
New Mexico 0.83% | ||||||||
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison | ||||||||
Company Four Corners Project), 1.875% 2029 (put 2020) | 2,000 | 2,012 | ||||||
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2005-B, 1.875% 2029 (put 2020) | 2,250 | 2,245 | ||||||
Other securities | 2,697 | |||||||
6,954 | ||||||||
New York 8.21% | ||||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2019 | 750 | 803 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2020 | 2,000 | 2,250 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 1.24% 2039 (put 2020)1 | 6,250 | 6,243 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043 | 1,530 | 1,568 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, AMT, 3.50% 2034 | 2,855 | 2,935 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 195, 4.00% 2046 | 2,985 | 3,196 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044 | 1,000 | 1,051 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 200, 3.50% 2045 | 650 | 685 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 52, AMT, 3.50% 2030 | 950 | 986 | ||||||
City of New York, G.O. Bonds, Fiscal 2014 Series A-6, 1.13% 20311 | 2,500 | 2,497 | ||||||
City of New York, G.O. Bonds, Series 2008-J-4, 1.21% 20251 | 6,000 | 6,000 | ||||||
City of New York, G.O. Bonds, Series 2012-I, 5.00% 2018 | 1,000 | 1,059 | ||||||
City of New York, G.O. Bonds, Series 2014-A, 5.00% 2020 | 1,500 | 1,681 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series B, 5.00% 2017 | 1,000 | 1,000 | ||||||
Thruway Auth., General Rev. Junior Indebtedness Obligations, Series 2013-A, 5.00% 2019 | 4,700 | 5,081 | ||||||
Other securities | 31,728 | |||||||
68,763 | ||||||||
Ohio 1.66% | ||||||||
Solid Waste Disposal Rev. Bonds (Waste Management Inc. Project), Series 2002, AMT, 1.70% 2022 (put 2018) | 2,500 | 2,508 | ||||||
Other securities | 11,376 | |||||||
13,884 |
14 | American Funds Tax-Exempt Funds |
American Funds Short-Term Tax-Exempt Bond Fund
Principal amount (000) | Value (000) | |||||||
Oregon 1.20% | ||||||||
Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2013-C, 1.66% 2022 (put 2018)1 | $ | 3,000 | $ | 3,000 | ||||
Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2013-C, 1.51% 2020 (put 2017)1 | 1,500 | 1,500 | ||||||
Other securities | 5,581 | |||||||
10,081 | ||||||||
Pennsylvania 3.12% | ||||||||
Econ. Dev. Fncg. Auth., Unemployment Compensation Rev. Bonds, Series 2012-B, 5.00% 2021 | 4,000 | 4,152 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-117-A, AMT, 3.50% 2040 | 1,675 | 1,736 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-118-A, AMT, 3.50% 2040 | 1,775 | 1,839 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-119, 3.50% 2041 | 905 | 943 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-120, 3.50% 2046 | 985 | 1,030 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2017-122, 4.00% 2046 | 3,440 | 3,682 | ||||||
Turnpike Commission, Turnpike Rev. Bonds, Series 2016, 5.00% 2021 | 3,500 | 3,930 | ||||||
Other securities | 8,769 | |||||||
26,081 | ||||||||
Rhode Island 1.09% | ||||||||
Housing and Mortgage Fin. Corp., Homeownership Opportunity Bonds, Series 66-A-1, 4.00% 2033 | 3,010 | 3,157 | ||||||
Other securities | 5,979 | |||||||
9,136 | ||||||||
South Carolina 0.73% | ||||||||
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2012-A, 4.00% 2020 | 2,945 | 3,207 | ||||||
Other securities | 2,905 | |||||||
6,112 | ||||||||
Tennessee 1.52% | ||||||||
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-2-C, 4.00% 2038 | 565 | 594 | ||||||
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-1-C, 4.50% 2037 | 785 | 832 | ||||||
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2011-1-A, AMT, 4.50% 2031 | 1,345 | 1,415 | ||||||
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2012-1-A, AMT, 4.50% 2038 | 660 | 695 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, 4.00% 2046 | 455 | 484 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Issue 2013-1-C, 3.00% 2038 | 1,235 | 1,266 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043 | 1,220 | 1,271 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-1-A, AMT, 4.00% 2039 | 1,605 | 1,686 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-A, AMT, 4.00% 2045 | 1,375 | 1,452 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-C, 4.00% 2045 | 1,040 | 1,095 | ||||||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2016-1-B, 3.50% 2047 | 930 | 978 | ||||||
Other securities | 1,000 | |||||||
12,768 | ||||||||
Texas 8.83% | ||||||||
Mission Econ. Dev. Corp., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2008, AMT, 2.50% 2020 (put 2013) | 2,000 | 2,030 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, 5.00% 2018 | 2,000 | 2,082 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2009-A, 5.25% 2024 (preref. 2019) | 1,100 | 1,188 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2012-C, 2.00% 2027 (put 2018) | 1,625 | 1,641 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-A, 2.25% 2033 (put 2019) | 5,500 | 5,584 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-B, 1.040% 2033 (put 2018)1 | 6,000 | 5,987 |
American Funds Tax-Exempt Funds | 15 |
American Funds Short-Term Tax-Exempt Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Texas (continued) | ||||||||
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, 1.040% 2041 (put 2018)1 | $ | 6,500 | $ | 6,496 | ||||
Board of Regents of The University of Texas System, Rev. Fncg. System Bonds, Series 2016-J, 5.00% 2024 | 5,000 | 5,990 | ||||||
Other securities | 42,953 | |||||||
73,951 | ||||||||
Virginia 0.79% | ||||||||
Commonwealth Transportation Board, Federal Transportation Grant Anticipation Rev. Notes, Series 2013-A, 5.00% 2020 | 3,000 | 3,335 | ||||||
Other securities | 3,284 | |||||||
6,619 | ||||||||
Washington 3.26% | ||||||||
Econ. Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2008, 2.125% 20202 | 5,000 | 5,021 | ||||||
Health Care Facs. Auth., Rev. Bonds (Providence Health & Services), Series 2012-B, 4.00% 2042 (put 2021) | 250 | 273 | ||||||
Health Care Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2012-A, 5.00% 2018 | 500 | 532 | ||||||
Health Care Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2012-B, 5.00% 2042 (put 2021) | 2,550 | 2,893 | ||||||
Other securities | 18,559 | |||||||
27,278 | ||||||||
Wisconsin 2.52% | ||||||||
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-2, 4.00% 2043 (put 2019) | 1,000 | 1,060 | ||||||
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020) | 4,500 | 4,989 | ||||||
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2016-A, AMT, 3.50% 2046 | 3,855 | 3,994 | ||||||
Public Fin. Auth., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2016-A-4, AMT, 2.00% 2033 (put 2021) | 1,500 | 1,482 | ||||||
Other securities | 9,539 | |||||||
21,064 | ||||||||
Other states & U.S. territories 9.79% | ||||||||
Other securities | 81,850 | |||||||
Total bonds, notes & other debt instruments (cost: $767,110,000) | 765,335 | |||||||
Short-term securities 8.35% | ||||||||
State of Maryland, Montgomery County, Consolidated Public Improvement Bond Anticipation Notes, Series 2009-B, 0.74% 3/1/2017 | 10,000 | 10,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-J, 0.58% 20351 | 7,000 | 7,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 0.58% 20351 | 3,000 | 3,000 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20361 | 7,300 | 7,300 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-L-5, 0.63% 20351 | 3,700 | 3,700 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-J-5, 0.63% 20281 | 3,310 | 3,310 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-L-4, 0.62% 20381 | 3,100 | 3,100 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 0.63% 20451 | 2,000 | 2,000 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20451 | 10,700 | 10,700 |
16 | American Funds Tax-Exempt Funds |
American Funds Short-Term Tax-Exempt Bond Fund
Principal amount (000) | Value (000) | |||||||
State of New York, New York City Transitional Fin. Auth., New York City Recovery Bonds, Fiscal 2003, Series 2002-1-C, 0.63% 20221 | $ | 7,160 | $ | 7,160 | ||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Rev. Bonds, Series 2003-F-2, 0.62% 20351 | 5,650 | 5,650 | ||||||
Other securities | 7,006 | |||||||
Total short-term securities (cost: $69,926,000) | 69,926 | |||||||
Total investment securities 99.79% (cost: $837,036,000) | 835,261 | |||||||
Other assets less liabilities 0.21% | 1,762 | |||||||
Net assets 100.00% | $ | 837,023 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date. | |
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 was $5,021,000, which represented .60% 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
American Funds Tax-Exempt Funds | 17 |
Limited Term Tax-Exempt Bond Fund of America | unaudited |
Summary investment portfolio January 31, 2017 | |
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/or 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. |
Bonds, notes & other debt instruments 93.48% | Principal amount (000) | Value (000) | ||||||
Alabama 1.01% | ||||||||
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021) | $ | 14,500 | $ | 15,545 | ||||
Other securities | 22,027 | |||||||
37,572 | ||||||||
California 10.93% | ||||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 1.56% 2045 (put 2023)1 | 20,500 | 20,348 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-C-1, 1.56% 2047 (put 2023)1 | 3,500 | 3,474 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-E-3, 1.33% 2047 (put 2019)1 | 1,000 | 999 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-B-1, 1.76% 2045 (put 2024)1 | 2,500 | 2,500 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-G, 1.26% 2034 (put 2020)1 | 2,500 | 2,501 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-H, 1.36% 2034 (put 2021)1 | 10,480 | 10,474 | ||||||
Econ. Recovery Bonds, Ref. Series 2009-A, 5.00% 2020 (preref. 2019) | 9,000 | 9,833 | ||||||
Other securities | 358,150 | |||||||
408,279 | ||||||||
Connecticut 1.36% | ||||||||
Special Tax Obligation Ref. Bonds, Transportation Infrastructure Purposes, Series 2009-1, 5.00% 2019 | 8,550 | 9,176 | ||||||
Other securities | 41,534 | |||||||
50,710 | ||||||||
Florida 7.64% | ||||||||
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2018 | 2,000 | 2,102 | ||||||
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2019 | 5,000 | 5,412 | ||||||
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 5.50% 2017 | 10,035 | 10,191 | ||||||
Citizens Property Insurance Corp., High-Risk Account Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2020 | 3,500 | 3,830 | ||||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2019 | 3,600 | 3,897 | ||||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2020 | 4,500 | 4,993 |
18 | American Funds Tax-Exempt Funds |
Limited Term Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2021 | $ | 1,000 | $ | 1,132 | ||||
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2022 | 10,200 | 11,742 | ||||||
Fin. Auth., Econ. Dev. Rev. Bonds (Republic Services, Inc. Project), Series 2010-B, 0.90% 2028 (put 2017)1 | 10,500 | 10,500 | ||||||
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 | 13,000 | 13,073 | ||||||
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2021 | 11,600 | 13,082 | ||||||
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 | 10,874 | ||||||
Other securities | 194,628 | |||||||
285,456 | ||||||||
Georgia 2.74% | ||||||||
Municipal Electric Auth., Project 1, Series 2008-D, 5.75% 2019 (preref. 2018) | 11,840 | 12,627 | ||||||
Public Gas Partners, Inc., Gas Project Rev. Ref. Bonds (Gas Supply Pool No. 1), Series A, 5.00% 2018 | 10,930 | 11,594 | ||||||
Other securities | 78,267 | |||||||
102,488 | ||||||||
Hawaii 0.53% | ||||||||
Airports System Rev. Bonds, Series 2010-B, AMT, 5.00% 2018 | 9,900 | 10,409 | ||||||
Other securities | 9,522 | |||||||
19,931 | ||||||||
Illinois 9.59% | ||||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2019 | 2,785 | 2,975 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2012-B, AMT, 5.00% 2024 | 2,000 | 2,216 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2013-A, AMT, 5.00% 2022 | 3,055 | 3,415 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2025 | 6,170 | 6,816 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2021 | 10,000 | 11,053 | ||||||
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2018 | 2,000 | 2,064 | ||||||
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2019 | 2,000 | 2,123 | ||||||
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2013-B, AMT, 5.00% 2022 | 3,000 | 3,354 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2017-D, 5.00% 2026 | 4,000 | 4,687 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2017-D, 5.25% 2029 | 1,500 | 1,762 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2008-A, Assured Guaranty Municipal insured, 5.00% 2019 (preref. 2018) | 2,000 | 2,074 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2023 | 5,000 | 5,636 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2015-B, 5.00% 2023 | 1,500 | 1,732 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2016-B, 5.00% 2019 | 2,500 | 2,671 | ||||||
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2016-C, 5.00% 2028 | 3,145 | 3,602 | ||||||
City of Chicago, Water Rev. Bonds, Series 2000, 5.00% 2022 | 10,500 | 11,774 |
American Funds Tax-Exempt Funds | 19 |
Limited Term Tax-Exempt Bond Fund of America
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Illinois (continued) | ||||||||
Housing Dev. Auth., Multifamily Housing Rev. Notes (Marshall Field Garden Apartment Homes), 1.66% 2050 (put 2025)1 | $ | 10,500 | $ | 10,394 | ||||
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.50% 2023 | 12,925 | 14,585 | ||||||
Other securities | 265,239 | |||||||
358,172 | ||||||||
Michigan 4.85% | ||||||||
Housing Dev. Auth., Single-Family Mortgage Rev. Bonds, Series 2016-B, 3.50% 2047 | 20,600 | 21,445 | ||||||
Wayne County, Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, FGIC-National insured, 5.00% 2018 | 1,000 | 1,031 | ||||||
Wayne County, Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, National insured, 5.00% 2017 | 1,000 | 1,031 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2008-A, AMT, Assured Guaranty insured, 5.25% 2018 | 595 | 620 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2017 | 1,615 | 1,663 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2018 | 3,590 | 3,794 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2019 | 1,000 | 1,082 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020 | 10,000 | 11,027 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2021 | 8,240 | 9,211 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, Assured Guaranty Municipal insured, 4.00% 2020 | 4,000 | 4,265 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-B, 5.00% 2019 | 1,000 | 1,092 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2019 | 3,560 | 3,851 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2015-F, AMT, 5.00% 2025 | 1,500 | 1,717 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2015-F, AMT, 5.00% 2026 | 1,000 | 1,136 | ||||||
Other securities | 118,228 | |||||||
181,193 | ||||||||
Nebraska 0.99% | ||||||||
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019) | 8,800 | 9,542 | ||||||
Other securities | 27,352 | |||||||
36,894 | ||||||||
Nevada 2.17% | ||||||||
Clark County, Highway Rev. (Motor Vehicle Fuel Tax) Ref. Bonds, Series 2011, 5.00% 2020 | 12,320 | 13,742 | ||||||
Clark County, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020) | 15,150 | 15,203 | ||||||
Other securities | 52,229 | |||||||
81,174 | ||||||||
New Jersey 2.71% | ||||||||
Turnpike Auth., Turnpike Rev. Ref. Bonds, Series 2013-D, 1.34% 2024 (put 2018)1 | 11,500 | 11,509 | ||||||
Other securities | 89,583 | |||||||
101,092 |
20 | American Funds Tax-Exempt Funds |
Limited Term Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
New York 8.58% | ||||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2003-B, FGIC-National insured, 5.25% 2020 | $ | 5,500 | $ | 6,237 | ||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018 | 3,670 | 3,868 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2020 | 3,250 | 3,656 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2021 | 3,470 | 3,820 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2024 | 5,000 | 5,935 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2027 | 3,150 | 3,667 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 1.24% 2039 (put 2020)1 | 12,250 | 12,235 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2011-C, 5.00% 2018 | 1,105 | 1,182 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2020 | 7,000 | 7,874 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-F, 5.00% 2021 | 1,000 | 1,147 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2014-A-2, 5.00% 2028 | 3,000 | 3,432 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044 | 9,700 | 10,190 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2032 | 1,500 | 1,754 | ||||||
City of New York, G.O. Bonds, Series 2008-J-4, 1.21% 20251 | 8,825 | 8,825 | ||||||
City of New York, G.O. Bonds, Series 2011-I-1, 5.00% 2017 | 5,000 | 5,105 | ||||||
City of New York, G.O. Bonds, Series 2012-I, 5.00% 2020 | 5,000 | 5,605 | ||||||
City of New York, G.O. Bonds, Series 2013-E, 5.25% 2022 | 5,000 | 5,882 | ||||||
City of New York, G.O. Bonds, Series 2014-A, 5.00% 2025 | 3,000 | 3,558 | ||||||
City of New York, G.O. Bonds, Series 2014-G, 5.00% 2023 | 1,500 | 1,766 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028 | 1,000 | 1,166 | ||||||
City of New York, G.O. Bonds, Series 2016-E, 5.00% 2026 | 2,000 | 2,412 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2025 | 2,420 | 2,906 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2027 | 5,000 | 5,923 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series B, 5.00% 2017 | 1,910 | 1,910 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2003 Series A-1, 5.00% 2022 | 1,305 | 1,521 | ||||||
New York City Transitional Fin. Auth., Multi-Modal Rev. Ref. Bonds, Series 2011-B, 5.00% 2022 | 1,750 | 1,999 | ||||||
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2017 | 10,000 | 10,071 | ||||||
Other securities | 196,946 | |||||||
320,592 | ||||||||
Pennsylvania 5.12% | ||||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-121, 3.50% 2046 | 12,000 | 12,536 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-117-A, AMT, 3.50% 2040 | 550 | 570 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-118-A, AMT, 3.50% 2040 | 7,245 | 7,507 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-119, 3.50% 2041 | 905 | 943 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-120, 3.50% 2046 | 7,410 | 7,749 | ||||||
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2017-122, 4.00% 2046 | 10,680 | 11,432 | ||||||
Other securities | 150,348 | |||||||
191,085 | ||||||||
South Dakota 0.47% | ||||||||
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2016-D, 3.50% 2046 | 10,200 | 10,738 | ||||||
Other securities | 6,967 | |||||||
17,705 |
American Funds Tax-Exempt Funds | 21 |
Limited Term Tax-Exempt Bond Fund of America
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Texas 9.09% | ||||||||
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 | $ | 13,040 | $ | 13,844 | ||||
Harris County Cultural Education Facs. Fin. Corp., Medical Facs. Rev. Ref. Bonds (Baylor College of Medicine), 1.34% 2045 (put 2020)1 | 13,000 | 13,193 | ||||||
Harris County, Toll Road Rev. Bonds, Series 2012-B, 1.36% 2021 (put 2018)1 | 13,500 | 13,493 | ||||||
City of Houston, Airport System Rev. Ref. Bonds, Series 2011-A, AMT, 5.00% 2019 | 10,000 | 10,780 | ||||||
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-A, 2.25% 2033 (put 2019) | 11,500 | 11,676 | ||||||
Other securities | 276,709 | |||||||
339,695 | ||||||||
Virginia 0.56% | ||||||||
Industrial Dev. Auth. of Wise County, Solid Waste and Sewage Disposal Rev. Bonds (Virginia Electric and Power Co. Project), Series 2009-A, 2.15% 2040 (put 2020) | 12,000 | 12,071 | ||||||
Other securities | 8,946 | |||||||
21,017 | ||||||||
Washington 2.46% | ||||||||
Central Puget Sound Regional Transit Auth., Sales Tax Bonds, Series 2015-S-2A, 1.33% 2045 (put 2018)1 | 10,500 | 10,506 | ||||||
Various Purpose G.O. Bonds, Series 2017-D, 5.00% 2028 | 10,000 | 12,067 | ||||||
Other securities | 69,251 | |||||||
91,824 | ||||||||
Wisconsin 1.62% | ||||||||
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020) | 10,310 | 11,430 | ||||||
Other securities | 48,995 | |||||||
60,425 | ||||||||
Other states & U.S. territories 21.06% | ||||||||
Other securities | 786,982 | |||||||
Total bonds, notes & other debt instruments (cost: $3,458,154,000) | 3,492,286 | |||||||
Short-term securities 6.30% | ||||||||
State of California, County of Los Angeles, 2016-17 Tax and Rev. Anticipation Notes, 3.00% 6/30/2017 | 14,000 | 14,141 | ||||||
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2016-A, 2.00% 6/27/2017 | 25,000 | 25,131 | ||||||
State of Idaho, Tax Anticipation Notes, Series 2016, 2.00% 6/30/2017 | 20,000 | 20,101 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.58% 20301 | 5,000 | 5,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-D, 0.58% 20301 | 10,000 | 10,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 0.58% 20351 | 4,000 | 4,000 | ||||||
State of New York, Metropolitan Transportation Auth., Dedicated Tax Fund Bond Anticipation Notes, Series 2016-A-1-F, 2.00% 3/1/2017 | 7,500 | 7,507 | ||||||
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2016-A-1-E, 2.00% 3/1/2017 | 10,000 | 10,010 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20361 | 6,100 | 6,100 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-L-5, 0.63% 20351 | 10,610 | 10,610 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-J-5, 0.63% 20281 | 10,000 | 10,000 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 0.63% 20451 | 14,850 | 14,850 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-4, 0.63% 20451 | 2,800 | 2,800 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20451 | 14,000 | 14,000 |
22 | American Funds Tax-Exempt Funds |
Limited Term Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
State of New York, New York City Transitional Fin. Auth., New York City Recovery Bonds, Fiscal 2003, Series 2002-1-C, 0.63% 20221 | $ | 1,790 | $ | 1,790 | ||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2006, Series 2005-B, 0.62% 20321 | 8,530 | 8,530 | ||||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2014, Series 2013-AA-2, 0.63% 20501 | 3,200 | 3,200 | ||||||
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2016-A, 2.00% 6/30/2017 | 13,000 | 13,069 | ||||||
State of Texas, City of Houston, Public Improvement G.O. Bonds, Series 2017-H-2, 0.75% 2/7/2017 | 5,000 | 5,000 | ||||||
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, 1.00% 6/30/2017 | 5,000 | 5,004 | ||||||
Other securities | 44,594 | |||||||
Total short-term securities (cost: $235,445,000) | 235,437 | |||||||
Total investment securities 99.78% (cost: $3,693,599,000) | 3,727,723 | |||||||
Other assets less liabilities 0.22% | 8,183 | |||||||
Net assets 100.00% | $ | 3,735,906 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of $34,311,000, which represented .92% of the net assets of the fund) were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
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 | 23 |
The Tax-Exempt Bond Fund of America | unaudited |
Summary investment portfolio January 31, 2017 |
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/or 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. |
Bonds, notes & other debt instruments 94.37% | Principal amount (000) | Value (000) | ||||||
Alabama 1.85% | ||||||||
City of Birmingham, Water Works Board, Water Rev. Ref. Bonds, Series 2016-B, 5.00% 2043 | $ | 26,200 | $ | 29,074 | ||||
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021) | 50,000 | 53,605 | ||||||
Jefferson County, Sewer Rev. Warrants, Series 2013-A, Assured Guaranty Municipal insured, 5.00% 2044 | 22,340 | 24,785 | ||||||
Public School and College Auth., Capital Improvement Bonds, Series 2007, 5.00% 2019 (preref. 2017) | 30,220 | 31,275 | ||||||
Other securities | 115,254 | |||||||
253,993 | ||||||||
Arizona 2.14% | ||||||||
Health Facs. Auth., Rev. Bonds (Banner Health), Series 2007-B, 1.479% 20371 | 27,200 | 23,250 | ||||||
Other securities | 269,794 | |||||||
293,044 | ||||||||
California 10.21% | ||||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-B-1, 1.76% 2045 (put 2024)1 | 30,850 | 30,847 | ||||||
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053 | 24,000 | 27,426 | ||||||
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041 | 19,850 | 23,140 | ||||||
Other securities | 1,320,513 | |||||||
1,401,926 | ||||||||
Colorado 2.23% | ||||||||
Health Facs. Auth., Health Facs. Rev. Ref. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042 | 29,815 | 30,428 | ||||||
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041 | 23,765 | 26,323 | ||||||
Other securities | 249,942 | |||||||
306,693 | ||||||||
Delaware 0.23% | ||||||||
Transportation Auth., Rev. Bonds (U.S. 301 Project), 5.00% 2055 | 25,455 | 27,675 | ||||||
Other securities | 3,517 | |||||||
31,192 |
24 | American Funds Tax-Exempt Funds |
The Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
Florida 7.42% | ||||||||
Greater Orlando Aviation Auth. (City of Orlando), Airport Facs. Rev. Bonds, Series 2016-B, 5.00% 2046 | $ | 21,020 | $ | 23,513 | ||||
Orlando-Orange County, Expressway Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2035 | 27,350 | 30,470 | ||||||
Other securities | 964,402 | |||||||
1,018,385 | ||||||||
Georgia 2.66% | ||||||||
City of Atlanta, Water and Wastewater Rev. Ref. Bonds, Series 1999-A, FGIC-National insured, 5.50% 2022 | 20,500 | 24,102 | ||||||
Other securities | 341,272 | |||||||
365,374 | ||||||||
Illinois 11.58% | ||||||||
Chicago Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2014, 5.25% 2049 | 27,500 | 30,159 | ||||||
Chicago Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2017, 5.00% 2051 | 24,000 | 25,374 | ||||||
Fin. Auth., Rev. Bonds (Mercy Health Corp.), Series 2016, 5.00% 2046 | 23,190 | 24,407 | ||||||
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2015-A, 5.00% 2045 | 26,890 | 28,865 | ||||||
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043 | 27,500 | 30,449 | ||||||
Fin. Auth., Rev. Ref. Bonds (Provena Health), Series 2009-A, 7.75% 2034 (preref. 2019) | 18,820 | 21,859 | ||||||
Housing Dev. Auth., Multifamily Housing Rev. Notes (Marshall Field Garden Apartment Homes), 1.66% 2050 (put 2025)1 | 26,175 | 25,912 | ||||||
Southwestern Illinois Dev. Auth., Health Fac. Rev. Bonds (Memorial Group, Inc.), Series 2013, 7.625% 2048 | 17,340 | 22,529 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2008-B, 5.50% 2033 (preref. 2018) | 18,210 | 18,969 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2027 | 1,305 | 1,485 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2028 | 1,000 | 1,133 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2029 | 3,000 | 3,384 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2030 | 7,100 | 7,967 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2032 | 1,000 | 1,114 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2033 | 2,200 | 2,443 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2038 | 34,430 | 37,902 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2038 | 2,500 | 2,749 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2039 | 3,000 | 3,301 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2015-B, 5.00% 2036 | 2,000 | 2,218 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2015-B, 5.00% 2037 | 1,500 | 1,659 | ||||||
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2015-B, 5.00% 2040 | 9,500 | 10,491 | ||||||
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 4.50% 2027 | 6,000 | 6,358 | ||||||
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2025 | 10,000 | 10,968 | ||||||
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2028 | 10,000 | 10,941 | ||||||
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2031 | 4,000 | 4,312 | ||||||
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2016-B, 5.00% 2035 | 3,055 | 3,415 | ||||||
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2016-B, 5.00% 2036 | 2,000 | 2,229 | ||||||
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2016-B, 5.00% 2037 | 1,900 | 2,111 | ||||||
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2016-B, 5.00% 2041 | 20,430 | 22,645 | ||||||
Other securities | 1,222,361 | |||||||
1,589,709 | ||||||||
Louisiana 1.93% | ||||||||
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032 | 24,560 | 25,331 | ||||||
Other securities | 239,279 | |||||||
264,610 |
American Funds Tax-Exempt Funds | 25 |
The Tax-Exempt Bond Fund of America
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Michigan 3.65% | ||||||||
School Dist. of the City of Detroit (Wayne County), School Building and Site Improvement Ref. Bonds (Unlimited Tax G.O.), Series 2005-A, Assured Guaranty Municipal insured, 5.25% 2032 | $ | 20,000 | $ | 23,055 | ||||
Housing Dev. Auth., Single-Family Mortgage Rev. Bonds, Series 2016-B, 3.50% 2047 | 28,595 | 29,768 | ||||||
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048 | 55,520 | 51,284 | ||||||
Other securities | 397,414 | |||||||
501,521 | ||||||||
New Jersey 2.00% | ||||||||
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041 | 34,150 | 30,736 | ||||||
Other securities | 244,144 | |||||||
274,880 | ||||||||
New York 6.31% | ||||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049 | 21,000 | 22,915 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2045 | 20,000 | 22,217 | ||||||
City of New York, G.O. Bonds, Series 2013-F-1, 5.00% 2037 | 3,000 | 3,340 | ||||||
City of New York, G.O. Bonds, Series 2013-H, 5.00% 2023 | 2,475 | 2,915 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2037 | 2,500 | 2,857 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2032 | 1,500 | 1,754 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2034 | 1,000 | 1,159 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2037 | 2,500 | 2,868 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2038 | 1,500 | 1,725 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2041 | 1,500 | 1,721 | ||||||
City of New York, G.O. Bonds, Series 2007-D, 5.00% 2017 | 5,000 | 5,000 | ||||||
City of New York, G.O. Bonds, Series 2008-J-4, 1.21% 20251 | 2,350 | 2,350 | ||||||
City of New York, G.O. Bonds, Series 2013-J, 5.00% 2023 | 500 | 589 | ||||||
City of New York, G.O. Bonds, Series 2014-A, 5.00% 2024 | 5,500 | 6,543 | ||||||
City of New York, G.O. Bonds, Series 2014-G, 5.00% 2023 | 2,500 | 2,944 | ||||||
City of New York, G.O. Bonds, Series 2014-J, 5.00% 2030 | 2,000 | 2,318 | ||||||
City of New York, G.O. Bonds, Series 2015-A, 5.00% 2026 | 8,000 | 9,532 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028 | 1,500 | 1,749 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2030 | 10,000 | 11,527 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2032 | 3,500 | 4,003 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2033 | 1,000 | 1,139 | ||||||
City of New York, G.O. Bonds, Series 2015-D, 5.00% 2030 | 2,560 | 2,951 | ||||||
City of New York, G.O. Bonds, Series 2016-E, 5.00% 2026 | 2,000 | 2,412 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series D, 5.00% 2024 | 1,000 | 1,139 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2012 Series E-1, 5.00% 2037 | 2,000 | 2,248 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2012 Series F-1, 5.00% 2039 | 1,000 | 1,123 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2013 Series F-1, 5.00% 2028 | 1,500 | 1,735 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2013 Series F-1, 5.00% 2036 | 1,000 | 1,126 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2017 Series 2016-A-1, 5.00% 2040 | 14,170 | 16,149 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2017 Series 2016-A-1, 5.00% 2035 | 1,000 | 1,148 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2014-D-1, 5.00% 2036 | 500 | 562 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2027 | 7,250 | 8,588 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2014-A-1, 5.00% 2037 | 2,500 | 2,826 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2034 | 8,000 | 9,141 |
26 | American Funds Tax-Exempt Funds |
The Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2036 | $ | 4,000 | $ | 4,542 | ||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2037 | 3,000 | 3,402 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-1, 5.00% 2031 | 5,000 | 5,745 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-1, 5.00% 2041 | 1,200 | 1,349 | ||||||
New York City Transitional Fin. Auth., Multi-Modal Rev. Ref. Bonds, Series 2011-B, 5.00% 2020 | 1,500 | 1,662 | ||||||
Other securities | 687,040 | |||||||
866,053 | ||||||||
Ohio 3.07% | ||||||||
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047 | 83,455 | 76,769 | ||||||
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047 | 28,495 | 28,072 | ||||||
Housing Fin. Agcy., Residential Mortgage Rev. Ref. Bonds (Mortgage-backed Securities Program), Series 2016-D, 4.00% 2047 | 26,405 | 28,251 | ||||||
Other securities | 288,297 | |||||||
421,389 | ||||||||
Pennsylvania 3.00% | ||||||||
Montgomery County, Industrial Dev. Auth., Retirement Communities Rev. Bonds (ACTS Retirement-Life Communities, Inc. Obligated Group), Series 2016, 5.00% 2036 | 22,000 | 23,509 | ||||||
Other securities | 388,905 | |||||||
412,414 | ||||||||
Texas 9.66% | ||||||||
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, Series 2013-B, 5.00% 2053 | 32,800 | 36,194 | ||||||
Harris County Cultural Education Facs. Fin. Corp., Medical Facs. Rev. Ref. Bonds (Baylor College of Medicine), 1.34% 2045 (put 2020)1 | 22,000 | 22,327 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Capital Appreciation Bonds, Series 2008-D, Assured Guaranty insured, 0% 2032 | 5,360 | 2,980 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.50% 2018 | 1,000 | 1,040 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.625% 2033 (preref 2018) | 6,890 | 7,183 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021 | 465 | 483 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021 (preref. 2018) | 3,295 | 3,446 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023 | 1,545 | 1,606 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023 (preref. 2018) | 11,025 | 11,532 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025 | 615 | 641 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025 (preref. 2018) | 4,385 | 4,587 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2012-B, 5.25% 2052 | 8,435 | 9,264 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2014-C, 1.33% 2038 (put 2020)1 | 7,500 | 7,521 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2015-B, 5.00% 2040 | 7,200 | 7,967 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-A, 5.625% 2033 | 1,860 | 1,925 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-A, 5.625% 2033 (preref. 2018) | 6,350 | 6,620 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2033 (preref. 2018) | 3,000 | 3,131 |
American Funds Tax-Exempt Funds | 27 |
The Tax-Exempt Bond Fund of America
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Texas (continued) | ||||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2038 (preref. 2018) | $ | 8,500 | $ | 8,871 | ||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.00% 2028 | 2,995 | 3,251 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.00% 2028 (preref. 2019) | 13,005 | 14,197 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.10% 2028 | 940 | 1,023 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.10% 2028 (preref. 2019) | 4,060 | 4,440 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.25% 2039 | 935 | 1,011 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.25% 2039 (preref. 2019) | 4,065 | 4,457 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2034 | 1,500 | 1,723 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2038 | 5,000 | 5,717 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-A, 1.46% 2050 (put 2019)1 | 3,600 | 3,604 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-B, 5.00% 2038 | 8,000 | 8,584 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019) | 8,600 | 8,651 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2014-A, 5.00% 2022 | 1,000 | 1,140 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2032 | 7,500 | 8,404 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2034 | 4,500 | 5,003 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2035 | 4,000 | 4,432 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2038 | 1,500 | 1,652 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2030 | 1,800 | 2,059 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2031 | 1,000 | 1,137 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2032 | 500 | 566 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2033 | 455 | 513 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2034 | 1,000 | 1,122 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2035 | 1,200 | 1,342 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2036 | 1,000 | 1,115 | ||||||
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2016-A, 5.00% 2039 | 7,000 | 7,775 | ||||||
Other securities | 1,095,291 | |||||||
1,325,527 | ||||||||
Washington 2.94% | ||||||||
Health Care Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2013-B-1, 1.66% 2035 (put 2021)1 | 59,750 | 59,475 | ||||||
Health Care Facs. Auth., Rev. Ref. Bonds (Virginia Mason Medical Center), Series 2007-A, 6.125% 2037 | 22,000 | 22,446 | ||||||
Other securities | 320,994 | |||||||
402,915 | ||||||||
Wisconsin 1.91% | ||||||||
General Fund Annual Appropriation Rev. Ref. Bonds, Series 2009-A, 6.00% 2036 (preref. 2019) | 52,960 | 58,611 | ||||||
Other securities | 203,924 | |||||||
262,535 |
28 | American Funds Tax-Exempt Funds |
The Tax-Exempt Bond Fund of America
Principal amount (000) | Value (000) | |||||||
Other states & U.S. territories 21.58% | ||||||||
Other securities | $ | 2,960,400 | ||||||
Total bonds, notes & other debt instruments (cost: $12,683,199,000) | 12,952,560 | |||||||
Short-term securities 5.58% | ||||||||
State of California, County of Los Angeles, 2016-17 Tax and Rev. Anticipation Notes, 3.00% 6/30/2017 | $ | 60,000 | 60,605 | |||||
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2016-A, 2.00% 6/27/2017 | 75,000 | 75,393 | ||||||
State of Idaho, Tax Anticipation Notes, Series 2016, 2.00% 6/30/2017 | 40,000 | 40,202 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.58% 20301 | 3,000 | 3,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.60% 20301 | 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-D, 0.58% 20301 | 8,000 | 8,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.59% 20351 | 1,525 | 1,525 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-J, 0.58% 20351 | 18,400 | 18,400 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 0.58% 20351 | 9,000 | 9,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2014-B, 0.60% 20351 | 15,250 | 15,250 | ||||||
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-A, 0.62% 20301 | 9,700 | 9,700 | ||||||
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 2003-B, 0.60% 20331 | 12,895 | 12,895 | ||||||
State of New York, Metropolitan Transportation Auth., Dedicated Tax Fund Bond Anticipation Notes, Series 2016-A-1-F, 2.00% 3/1/2017 | 10,000 | 10,010 | ||||||
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2016-A-1-E, 2.00% 3/1/2017 | 33,000 | 33,034 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20361 | 23,485 | 23,485 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-L-5, 0.63% 20351 | 35,000 | 35,000 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-J-5, 0.63% 20281 | 19,195 | 19,195 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-L-4, 0.62% 20381 | 20,590 | 20,590 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 0.63% 20451 | 15,740 | 15,740 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-4, 0.63% 20451 | 13,050 | 13,050 | ||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20451 | 43,250 | 43,250 | ||||||
State of New York, New York City Transitional Fin. Auth., New York City Recovery Bonds, Fiscal 2003, Series 2002-1-C, 0.63% 20221 | 6,985 | 6,985 | ||||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Rev. Bonds, Series 2003-F-2, 0.62% 20351 | 23,600 | 23,600 | ||||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2006, Series 2005-B, 0.62% 20321 | 29,850 | 29,850 | ||||||
State of New York, New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2014, Series 2013-AA-2, 0.63% 20501 | 8,000 | 8,000 | ||||||
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2016-A, 2.00% 6/30/2017 | 35,390 | 35,577 | ||||||
Other securities | 185,289 | |||||||
Total short-term securities (cost: $765,630,000) | 765,625 | |||||||
Total investment securities 99.95% (cost: $13,448,829,000) | 13,718,185 | |||||||
Other assets less liabilities 0.05% | 7,161 | |||||||
Net assets 100.00% | $ | 13,725,346 |
American Funds Tax-Exempt Funds | 29 |
The Tax-Exempt Bond Fund of America
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of $266,758,000, which represented 1.94% of the net assets of the fund) were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
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 |
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
30 | American Funds Tax-Exempt Funds |
American High-Income Municipal Bond Fund | unaudited |
Summary investment portfolio January 31, 2017 |
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/or 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. |
Bonds, notes & other debt instruments 94.73% | Principal amount (000) | Value (000) | ||||||
California 8.83% | ||||||||
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041 | $ | 13,040 | $ | 15,201 | ||||
Other securities | 421,641 | |||||||
436,842 | ||||||||
Colorado 4.25% | ||||||||
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 | 16,000 | 16,241 | ||||||
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 | 5,505 | 5,602 | ||||||
Health Facs. Auth., Health Care Facs. Rev. Bonds (American Baptist Homes of the Midwest Obligated Group), Series 2013, 8.00% 2043 | 11,100 | 12,578 | ||||||
Health Facs. Auth., Health Facs. Rev. Ref. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042 | 11,555 | 11,793 | ||||||
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041 | 14,800 | 16,393 | ||||||
Other securities | 147,513 | |||||||
210,120 | ||||||||
District of Columbia 0.74% | ||||||||
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-Backed Bonds, Series 2006-A, 0% 2046 | 145,000 | 16,584 | ||||||
Other securities | 20,256 | |||||||
36,840 | ||||||||
Florida 6.01% | ||||||||
Dev. Fin. Corp., Healthcare Facs. Rev. Bonds (UF Health - Jacksonville Project), Series 2013-A, 6.00% 2033 | 11,930 | 13,176 | ||||||
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 | 13,501 | ||||||
Palm Beach County, Health Facs. Auth., Retirement Communities Rev. Bonds (ACTS Retirement-Life Communities, Inc. Obligated Group), Series 2016, 5.00% 2032 | 11,675 | 12,573 | ||||||
City of Tallahassee, Health Facs. Rev. Ref. Bonds (Tallahassee Memorial HealthCare, Inc. Project), Series 2016-A, 5.00% 2055 | 11,200 | 11,754 | ||||||
Other securities | 246,555 | |||||||
297,559 |
American Funds Tax-Exempt Funds | 31 |
American High-Income Municipal Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Illinois 11.70% | ||||||||
Chicago Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2017, 5.00% 2051 | $ | 15,000 | $ | 15,859 | ||||
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2041 | 13,000 | 13,778 | ||||||
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043 | 11,510 | 12,744 | ||||||
Fin. Auth., Rev. Ref. Bonds (Provena Health), Series 2009-A, 7.75% 2034 (preref. 2019) | 12,825 | 14,896 | ||||||
G.O. Bonds, Series 2012-A, 5.00% 2028 | 2,000 | 2,034 | ||||||
G.O. Bonds, Series 2013, 5.50% 2026 | 2,000 | 2,113 | ||||||
G.O. Bonds, Series 2013, 5.50% 2033 | 3,000 | 3,131 | ||||||
G.O. Bonds, Series 2014, 5.00% 2026 | 2,025 | 2,092 | ||||||
G.O. Bonds, Series 2014, 5.00% 2026 | 2,000 | 2,080 | ||||||
G.O. Bonds, Series 2014, 5.00% 2027 | 2,000 | 2,067 | ||||||
G.O. Bonds, Series 2014, 5.00% 2039 | 4,625 | 4,613 | ||||||
G.O. Bonds, Series 2016, 4.00% 2032 | 7,000 | 6,146 | ||||||
G.O. Bonds, Series 2016, 5.00% 2028 | 1,500 | 1,541 | ||||||
G.O. Bonds, Series 2016, 5.00% 2038 | 1,000 | 995 | ||||||
G.O. Bonds, Series 2016, 5.50% 2027 | 2,000 | 2,102 | ||||||
G.O. Bonds, Series of July 2013, 5.50% 2038 | 1,000 | 1,035 | ||||||
G.O. Bonds, Series of March 2012, 5.00% 2037 | 1,980 | 1,970 | ||||||
G.O. Bonds, Series of May 2014, 5.00% 2039 | 2,600 | 2,593 | ||||||
G.O. Ref. Bonds, 5.00% 2030 | 3,000 | 3,045 | ||||||
G.O. Rev. Ref. Bonds, Series 2012, 4.00% 2025 | 405 | 394 | ||||||
G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2026 | 7,250 | 7,545 | ||||||
G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2028 | 5,000 | 5,153 | ||||||
G.O. Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 4.00% 2030 | 2,000 | 2,003 | ||||||
Southwestern Illinois Dev. Auth., Health Fac. Rev. Bonds (Memorial Group, Inc.), Series 2013, 7.625% 2048 | 11,020 | 14,318 | ||||||
Other securities | 455,038 | |||||||
579,285 | ||||||||
Massachusetts 2.60% | ||||||||
Dev. Fin. Agcy., Rev. Bonds (Linden Ponds, Inc. Fac.), Series 2011-A-1, 6.25% 2046 | 12,261 | 12,568 | ||||||
Dev. Fin. Agcy., Rev. Bonds (Linden Ponds, Inc. Fac.), Series 2016-A, 4.68% 20211 | 11,440 | 11,388 | ||||||
Dev. Fin. Agcy., Rev. Ref. Bonds (Tufts Medical Center Issue), Series 2011-I, 6.75% 2036 | 11,175 | 12,695 | ||||||
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2016-J, AMT, 3.50% 2033 | 21,000 | 18,761 | ||||||
Other securities | 73,481 | |||||||
128,893 | ||||||||
Michigan 4.27% | ||||||||
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2034 | 4,050 | 3,925 | ||||||
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048 | 60,385 | 55,778 | ||||||
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.875% 2042 | 5,440 | 5,473 | ||||||
Wayne County, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2028 | 12,000 | 12,991 | ||||||
Other securities | 133,169 | |||||||
211,336 | ||||||||
New Jersey 3.85% | ||||||||
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2013-I, 2.26% 20282 | 13,500 | 12,471 | ||||||
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.125% 2023 | 3,500 | 3,706 | ||||||
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.25% 2029 | 16,300 | 17,194 | ||||||
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2000-B, AMT, 5.625% 2030 | 2,500 | 2,721 | ||||||
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2003, AMT, 5.50% 2033 | 3,500 | 3,761 | ||||||
Econ. Dev. Auth., Special Fac. Rev. Ref. Bonds (Continental Airlines, Inc. Project), Series 2012, AMT, 5.75% 2027 | 4,500 | 4,825 |
32 | American Funds Tax-Exempt Funds |
American High-Income Municipal Bond Fund
Principal amount (000) | Value (000) | |||||||
South Jersey Transportation Auth., Transportation System Rev. Bonds, Series 2014-A, 5.00% 2039 | $ | 12,650 | $ | 13,546 | ||||
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041 | 22,860 | 20,575 | ||||||
Other securities | 111,577 | |||||||
190,376 | ||||||||
New York 4.33% | ||||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049 | 13,360 | 14,578 | ||||||
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.25% 2050 | 21,950 | 23,227 | ||||||
Other securities | 176,747 | |||||||
214,552 | ||||||||
Ohio 5.04% | ||||||||
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030 | 2,350 | 2,148 | ||||||
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047 | 108,715 | 100,007 | ||||||
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047 | 18,215 | 17,945 | ||||||
Other securities | 129,361 | |||||||
249,461 | ||||||||
Oklahoma 0.87% | ||||||||
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2001-B, AMT, 5.50% 2035 | 15,875 | 16,839 | ||||||
Other securities | 26,282 | |||||||
43,121 | ||||||||
Pennsylvania 5.19% | ||||||||
Hospitals and Higher Education Facs. Auth. of Philadelphia, Hospital Rev. Bonds (Temple University Health System Obligated Group), Series 2012-A, 5.625% 2042 | 12,320 | 13,160 | ||||||
Other securities | 243,641 | |||||||
256,801 | ||||||||
Puerto Rico 3.45% | ||||||||
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042 | 26,410 | 20,080 | ||||||
Electric Power Auth., Power Rev. Ref. Bonds, Series UU, Assured Guaranty Municipal insured, 1.189% 20292 | 19,260 | 14,653 | ||||||
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036 | 11,085 | 11,914 | ||||||
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 | 12,025 | 12,208 | ||||||
Sales Tax Fncg. Corp., Sales Tax Rev. Ref. Bonds, Series 2007-A, National insured, 0% 2043 | 54,000 | 11,837 | ||||||
Other securities | 100,154 | |||||||
170,846 | ||||||||
Rhode Island 1.09% | ||||||||
Health and Educational Building Corp., Hospital Fncg. Rev. Ref. Bonds (Care New England Issue), Series 2016-B, 5.00% 2031 | 11,410 | 11,645 | ||||||
Housing and Mortgage Fin. Corp., Homeownership Opportunity Bonds, Series 68-C, AMT, 3.50% 2039 | 13,250 | 13,801 | ||||||
Other securities | 28,440 | |||||||
53,886 |
American Funds Tax-Exempt Funds | 33 |
American High-Income Municipal Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Texas 7.52% | ||||||||
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 | $ | 24,675 | $ | 26,197 | ||||
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.50% 2030 | 9,300 | 10,224 | ||||||
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.625% 2038 | . | 3,000 | 3,313 | |||||
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-B-1, AMT, 5.00% 2030 | 3,000 | 3,150 | ||||||
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-C, AMT, 5.00% 2020 | 7,235 | 7,552 | ||||||
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 4.75% 2024 | 5,500 | 5,834 | ||||||
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 5.00% 2029 | 6,745 | 7,095 | ||||||
Mission Econ. Dev. Corp., Rev. Bonds (Natgasoline Project), Series 2016-B, AMT, 5.75% 20311 | 14,165 | 14,659 | ||||||
Tarrant County, Cultural Education Facs. Fin. Corp., Retirement Fac. Rev. Bonds (Air Force Villages Obligated Group), 5.00% 2045 | 12,125 | 11,784 | ||||||
Turnpike Auth, Central Texas Turnpike System, Rev. Bonds, Series 2002-A, AMBAC insured, 0% 2028 | 25,800 | 17,159 | ||||||
Other securities | 265,307 | |||||||
372,274 | ||||||||
Wisconsin 2.13% | ||||||||
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2016-A, AMT, 3.50% 2046 | 18,330 | 18,991 | ||||||
Other securities | 86,272 | |||||||
105,263 | ||||||||
Other states & U.S. territories 22.86% | ||||||||
Other securities | 1,131,818 | |||||||
Total bonds, notes & other debt instruments (cost: $4,636,125,000) | 4,689,273 | |||||||
Short-term securities 4.67% | ||||||||
State of California, County of Los Angeles, 2016-17 Tax and Rev. Anticipation Notes, 3.00% 6/30/2017 | 14,000 | 14,141 | ||||||
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2016-A, 2.00% 6/27/2017 | 50,000 | 50,262 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.58% 20302 | 3,000 | 3,000 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-E, 0.60% 20302 | 3,375 | 3,375 | ||||||
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 0.58% 20352 | 5,000 | 5,000 | ||||||
State of New York, Metropolitan Transportation Auth., Dedicated Tax Fund Bond Anticipation Notes, Series 2016-A-1-F, 2.00% 3/1/2017 | 7,500 | 7,508 | ||||||
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2016-A-1-E, 2.00% 3/1/2017 | 7,000 | 7,007 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20362 | 5,000 | 5,000 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2006-L-5, 0.63% 20352 | 15,000 | 15,000 | ||||||
State of New York, City of New York, G.O. Bonds, Series 2008-J-5, 0.63% 20282 | 7,000 | 7,000 |
34 | American Funds Tax-Exempt Funds |
American High-Income Municipal Bond Fund
Principal amount (000) | Value (000) | |||||||
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20452 | $ | 11,600 | $ | 11,600 | ||||
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2016-A, 2.00% 6/30/2017 | 15,000 | 15,079 | ||||||
Other securities | 87,084 | |||||||
Total short-term securities (cost: $231,070,000) | 231,056 | |||||||
Total investment securities 99.40% (cost: $4,867,195,000) | 4,920,329 | |||||||
Other assets less liabilities 0.60% | 29,661 | |||||||
Net assets 100.00% | $ | 4,949,990 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | 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 $382,810,000, which represented 7.73% 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 | 35 |
The Tax-Exempt Fund of California | unaudited |
Summary investment portfolio January 31, 2017 |
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/or 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. |
Bonds, notes & other debt instruments 95.51% | Principal amount (000) | Value (000) | ||||||
California 93.41% | ||||||||
State issuers 37.11% | ||||||||
Trustees of The California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2034 | $ | 2,000 | $ | 2,078 | ||||
Trustees of The California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2035 | 10,000 | 10,344 | ||||||
Trustees of The California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2037 | 6,645 | 6,831 | ||||||
Trustees of The California State University, Systemwide Rev. Bonds, Series 2016-B-2, 4.00% 2049 (put 2021) | 5,000 | 5,471 | ||||||
Trustees of The California State University, Systemwide Rev. Ref. Bonds, Series 2012-A, 5.00% 2027 | 3,000 | 3,445 | ||||||
Educational Facs. Auth., Rev. Ref. Bonds (California Lutheran University), Series 2008, 5.75% 2038 | 6,000 | 6,357 | ||||||
Educational Facs. Auth., Rev. Ref. Bonds (Chapman University), Series 2011, 5.00% 2031 | 8,615 | 9,508 | ||||||
G.O. Bonds, Series 2012-A, 1.11% 2033 (put 2018)1 | 6,500 | 6,490 | ||||||
G.O. Bonds, Series 2013-E, 1.37% 20291 | 1,500 | 1,505 | ||||||
Various Purpose G.O. Bonds, 5.00% 2017 | 6,000 | 6,000 | ||||||
Various Purpose G.O. Bonds, 5.00% 2033 | 4,000 | 4,591 | ||||||
Various Purpose G.O. Bonds, 5.25% 2028 | 5,000 | 5,749 | ||||||
Various Purpose G.O. Bonds, 5.25% 2028 | 2,000 | 2,295 | ||||||
Various Purpose G.O. Bonds, 5.25% 2032 | 5,000 | 5,896 | ||||||
Various Purpose G.O. Bonds, 6.00% 2038 | 7,000 | 7,684 | ||||||
Various Purpose G.O. Bonds, 6.00% 2039 | 2,000 | 2,236 | ||||||
Various Purpose G.O. Bonds, 6.50% 2033 | 5,000 | 5,558 | ||||||
Various Purpose G.O. Bonds, Series 2008, 5.00% 2017 | 2,675 | 2,685 | ||||||
Various Purpose G.O. Bonds, Series 2016, 4.00% 2017 | 10,000 | 10,191 | ||||||
Various Purpose G.O. Rev. Ref. Bonds, 4.00% 2017 | 1,000 | 1,003 | ||||||
Various Purpose G.O. Rev. Ref. Bonds, Series 2016-C, 5.00% 2033 | 2,000 | 2,311 | ||||||
Veterans G.O. Ref. Bonds, Series 2016-CN, 3.50% 2045 | 9,980 | 10,509 | ||||||
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2005-A, Assured Guaranty Municipal insured, 0% 2026 | 11,000 | 8,155 | ||||||
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2007-A-1, 5.125% 2047 | 5,000 | 4,685 | ||||||
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2032 | 3,250 | 3,650 | ||||||
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2033 | 5,265 | 5,896 | ||||||
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2040 | 5,000 | 5,534 | ||||||
Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-A-1, 5.75% 2047 | 27,225 | 26,937 | ||||||
Health Facs. Fncg. Auth., Rev. Bonds (Sutter Health), Series 2011-D, 5.25% 2031 | 2,000 | 2,287 |
36 | American Funds Tax-Exempt Funds |
The Tax-Exempt Fund of California
Principal amount (000) | Value (000) | |||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Hospital and Clinics), Series 2010-B, 5.25% 2031 | $ | 8,000 | $ | 8,894 | ||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2008-A, 5.25% 2022 | 2,000 | 2,121 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2033 | 1,000 | 1,134 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2034 | 2,000 | 2,254 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2035 | 2,000 | 2,248 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-B, 4.00% 2038 | 9,165 | 9,268 | ||||||
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-B, 5.00% 2035 | 1,000 | 1,136 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, 5.25% 2024 (preref. 2018) | 1,630 | 1,751 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, 5.25% 2024 (preref. 2018) | 370 | 397 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.00% 2033 (preref. 2018) | 5,305 | 5,676 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.00% 2033 (preref. 2018) | 2,110 | 2,258 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2025 (preref. 2018) | 365 | 392 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2016-B-2, 4.00% 2032 | 1,830 | 1,934 | ||||||
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2016-B-2, 5.00% 2041 | 6,965 | 7,914 | ||||||
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2013-A-2, 1.043% 2047 (put 2019)1 | 10,000 | 9,952 | ||||||
Municipal Fin. Auth., Rev. Ref. Bonds (Azusa Pacific University Project), Series 2011-B, 8.00% 2041 (preref. 2021)2 | 8,550 | 10,763 | ||||||
Municipal Fin. Auth., Rev. Bonds (NorthBay Healthcare Group), Series 2017-A, 5.25% 2041 | 5,825 | 6,281 | ||||||
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2025 | 6,000 | 6,554 | ||||||
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 20452 | 7,000 | 7,143 | ||||||
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 | 2,708 | ||||||
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 | 1,625 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Front Porch Communities and Services Project), Series 2007-A, 5.125% 20372 | 9,500 | 9,526 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Inland Regional Center Project), Series 2007, 5.375% 2037 (preref. 2017) | 6,500 | 6,743 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (John Muir Health), Series 2016-A, 4.00% 2046 | 10,395 | 10,183 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2012-A, 5.00% 2042 | 6,500 | 7,075 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Sutter Health), Series 2011-A, 5.25% 2024 | 1,000 | 1,125 | ||||||
Statewide Communities Dev. Auth., Rev. Bonds (Sutter Health), Series 2011-A, 6.00% 2042 | 4,500 | 5,130 | ||||||
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-D, 5.50% 2031 (preref. 2017) | 6,090 | 6,210 | ||||||
Regents of the University of California, Limited Project Rev. Bonds, Series 2015-I, 5.00% 2017 | 5,050 | 5,113 | ||||||
Regents of the University of California, Limited Project Rev. Bonds, Series 2016-K, 5.00% 2033 | 2,110 | 2,465 | ||||||
Regents of the University of California, Limited Project Rev. Bonds, Series 2016-K, 5.00% 2034 | 2,500 | 2,907 | ||||||
Regents of the University of California, Limited Project Rev. Bonds, Series 2016-K, 5.00% 2035 | 9,390 | 10,877 | ||||||
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 4.00% 2037 | 5,585 | 5,702 | ||||||
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 4.00% 2038 | 2,360 | 2,408 | ||||||
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 5.00% 2033 | 3,000 | 3,452 |
American Funds Tax-Exempt Funds | 37 |
The Tax-Exempt Fund of California
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
California (continued) | ||||||||
State issuers (continued) | ||||||||
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 5.00% 2034 | $ | 2,000 | $ | 2,291 | ||||
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 1.274% 20371 | 5,000 | 4,262 | ||||||
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 1.344% 20431 | 8,000 | 6,506 | ||||||
Other securities | 383,052 | |||||||
743,311 | ||||||||
City & county issuers 56.30% | ||||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2025 | 1,700 | 1,962 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2026 | 6,375 | 7,309 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2034 | 2,000 | 2,198 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2036 | 1,000 | 1,091 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2037 | 3,790 | 4,120 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 4.00% 2035 | 2,500 | 2,522 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 4.00% 2037 | 2,000 | 2,009 | ||||||
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 5.00% 2036 | 1,500 | 1,675 | ||||||
Baldwin Park Unified School Dist. (Los Angeles County), G.O. Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 4.00% 2031 | 6,420 | 6,730 | ||||||
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 | 6,711 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-F-1, 5.00% 2056 | 6,000 | 6,674 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 1.56% 2045 (put 2023)1 | 2,000 | 1,985 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-B-1, 1.76% 2045 (put 2024)1 | 7,500 | 7,499 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.00% 2039 (preref. 2018) | 2,000 | 2,095 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.125% 2039 (preref. 2019) | 2,000 | 2,172 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.625% 2044 (preref. 2019) | 1,670 | 1,831 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-B, 1.50% 2047 (put 2018) | 3,950 | 3,966 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-F-1, 5.00% 2054 | 5,000 | 5,498 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-G, 1.26% 2034 (put 2020)1 | 2,750 | 2,751 | ||||||
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-H, 1.36% 2034 (put 2021)1 | 4,000 | 3,998 | ||||||
Certs. of Part., Palomar Pomerado Health, 6.00% 2030 | 1,500 | 1,621 | ||||||
Certs. of Part., Palomar Pomerado Health, 6.00% 2041 | 3,710 | 4,039 | ||||||
Certs. of Part., Palomar Pomerado Health, 6.75% 2039 (preref. 2019) | 3,500 | 4,026 | ||||||
Chabot-Las Positas Community College Dist. (Alameda and Contra Costa Counties), G.O. Rev. Ref. Bonds, Series 2016, 4.00% 2034 | 9,940 | 10,412 | ||||||
Coachella Valley Unified School Dist., G.O. Bonds (Riverside and Imperial Counties), 2005 Election, Series 2016-E, Assured Guaranty Municipal insured, 4.00% 2045 | 6,555 | 6,627 | ||||||
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053 | 7,500 | 8,570 | ||||||
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2014-A, 6.00% 2049 | 5,800 | 6,647 | ||||||
City of Los Angeles, Dept. of Airports, Los Angeles International Airport, Rev. Bonds, Series 2016-B, AMT, 5.00% 2029 | 1,450 | 1,671 | ||||||
City of Los Angeles, Dept. of Airports, Los Angeles International Airport, Rev. Bonds, Series 2016-B, AMT, 5.00% 2031 | 1,020 | 1,163 | ||||||
City of Los Angeles, Dept. of Airports, Los Angeles International Airport, Rev. Bonds, Series 2016-B, AMT, 5.00% 2033 | 500 | 564 |
38 | American Funds Tax-Exempt Funds |
The Tax-Exempt Fund of California
Principal amount (000) | Value (000) | |||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Bonds, Series 2016-A, AMT, 4.00% 2034 | $ | 1,000 | $ | 1,020 | ||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Bonds, Series 2016-A, AMT, 5.00% 2035 | 2,000 | 2,231 | ||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Bonds, Series 2016-A, AMT, 5.00% 2042 | 1,000 | 1,103 | ||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Bonds, Series 2010-B, 5.00% 2035 | 1,000 | 1,099 | ||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Ref. Bonds, Series 2008-A, AMT, 5.50% 2022 (preref. 2018) | 5,000 | 5,286 | ||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Ref. Bonds, Series 2009-A, 5.25% 2029 | 2,000 | 2,171 | ||||||
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Ref. Bonds, Series 2010-A, 5.00% 2029 | 2,000 | 2,207 | ||||||
Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2015-A, AMT, 5.00% 2027 | 1,250 | 1,460 | ||||||
Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2015-A, AMT, 5.00% 2029 | 1,560 | 1,793 | ||||||
Oakland Unified School Dist., (County of Alameda), G.O. Bonds, Series 2015-A, 5.00% 2040 | 5,550 | 6,262 | ||||||
Palomar Health, G.O. Rev. Ref. Bonds, Series 2016-A, 5.00% 2034 | 970 | 1,083 | ||||||
Palomar Health, G.O. Rev. Ref. Bonds, Series 2016-B, 4.00% 2030 | 1,000 | 1,037 | ||||||
Palomar Health, G.O. Rev. Ref. Bonds, Series 2016-B, 4.00% 2031 | 1,000 | 1,031 | ||||||
Palomar Health, Rev. Ref. Bonds, Series 2016, 5.00% 2036 | 3,000 | 3,122 | ||||||
Palomar Health, Rev. Ref. Bonds, Series 2016, 5.00% 2039 | 3,250 | 3,359 | ||||||
Palomar Pomerado Health, G.O. Bonds, Election of 2004, Series 2009-A, Assured Guaranty insured, 0% 2028 | 2,000 | 1,300 | ||||||
Palomar Pomerado Health, G.O. Bonds, Election of 2004, Series 2009-A, Assured Guaranty insured, 0% 2029 | 9,350 | 5,793 | ||||||
Palomar Pomerado Health, G.O. Bonds, Election of 2004, Series 2009-A, Assured Guaranty insured, 0% 2031 | 3,000 | 1,695 | ||||||
Pasadena Unified School Dist. (Los Angeles County), 2008 Election G.O. Bonds, Series 2016, 4.00% 2032 | 5,000 | 5,288 | ||||||
Pasadena Unified School Dist. (Los Angeles County), 2008 Election G.O. Bonds, Series 2016, 4.00% 2034 | 5,040 | 5,259 | ||||||
Pasadena Unified School Dist. (Los Angeles County), 2008 Election G.O. Bonds, Series 2016, 4.00% 2035 | 15,940 | 16,579 | ||||||
Pasadena Unified School Dist. (Los Angeles County), 2008 Election G.O. Bonds, Series 2016, 4.00% 2036 | 2,250 | 2,329 | ||||||
Sacramento County Sanitation Dist. Fncg. Auth., Rev. Ref. Bonds (Sacramento Regional County Sanitation Dist.), Series 2007-B, FGIC-National insured, 1.154% 20351 | 13,500 | 11,591 | ||||||
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041 | 10,825 | 12,619 | ||||||
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Bonds, Series 2009-E, 6.00% 2039 | 3,000 | 3,302 | ||||||
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 | 3,696 | ||||||
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 | 5,440 | ||||||
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 | 3,270 | ||||||
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 | 2,885 | ||||||
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 | 1,123 | ||||||
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 | 1,106 | ||||||
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2016-A, 5.00% 2029 | 1,375 | 1,629 | ||||||
City and County of San Francisco, Airport Commission, San Francisco International Airport, Second Series Rev. Bonds, Series 2016-B, AMT, 5.00% 2046 | 4,000 | 4,394 | ||||||
Public Utilities Commission of the City and County of San Francisco, Wastewater Rev. Green Bonds, Series 2016-A, 4.00% 2037 | 6,575 | 6,869 |
American Funds Tax-Exempt Funds | 39 |
The Tax-Exempt Fund of California
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
California (continued) | ||||||||
City & county issuers (continued) | ||||||||
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.50% 2030 | $ | 8,000 | $ | 8,961 | ||||
Stockton Unified School Dist. (San Joaquin County), G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2031 | 7,800 | 8,943 | ||||||
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 | 7,512 | ||||||
Victor Valley Union High School Dist., G.O. Rev. Ref. Bonds, Series 2016-A, BAM insured, 4.00% 2032 | 7,500 | 7,826 | ||||||
City of Whittier, Health Fac. Rev. Bonds (PIH Health), Series 2014, 5.00% 2044 | 9,000 | 9,433 | ||||||
Other securities | 834,607 | |||||||
1,127,849 | ||||||||
Puerto Rico 1.50% | ||||||||
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036 | 6,590 | 7,083 | ||||||
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 | 7,259 | ||||||
Other securities | 15,612 | |||||||
29,954 | ||||||||
Other U.S. territories 0.60% | ||||||||
Other securities | 12,075 | |||||||
Total bonds, notes & other debt instruments (cost: $1,874,787,000) | 1,913,189 | |||||||
Short-term securities 3.52% | ||||||||
Various Purpose G.O. Commercial Paper, Series 2011-A-5, 0.71% 2/9/2017 | 5,300 | 5,300 | ||||||
Various Purpose G.O. Commercial Paper, Series 2011-A-5, 0.76% 3/7/2017 | 3,000 | 3,000 | ||||||
Various Purpose G.O. Commercial Paper, Series 2017-A-1, 0.74% 3/7/2017 | 4,200 | 4,200 | ||||||
Various Purpose G.O. Commercial Paper, Series 2017-A-2, 0.73% 3/9/2017 | 3,000 | 3,000 | ||||||
County of Los Angeles, 2016-17 Tax and Rev. Anticipation Notes, 3.00% 6/30/2017 | 21,000 | 21,212 | ||||||
Metropolitan Water Dist. of Southern California, Water Rev. Ref. Bonds, Series 2016-B-2, 0.57% 20371 | 15,400 | 15,400 | ||||||
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-C, JPMorgan Chase LOC, 0.59% 20261 | 10,000 | 10,000 | ||||||
Other securities | 8,500 | |||||||
Total short-term securities (cost: $70,595,000) | 70,612 | |||||||
Total investment securities 99.03% (cost: $1,945,382,000) | 1,983,801 | |||||||
Other assets less liabilities 0.97% | 19,343 | |||||||
Net assets 100.00% | $ | 2,003,144 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date. |
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 $53,217,000, which represented 2.66% of the net assets of the fund. |
40 | American Funds Tax-Exempt Funds |
The Tax-Exempt Fund of California
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 | 41 |
American Funds Tax-Exempt Fund of New York | unaudited |
Summary Investment portfolio January 31, 2017 |
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/or 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. |
Bonds, notes & other debt instruments 93.48% | Principal amount (000) | Value (000) | ||||||
New York 90.03% | ||||||||
State issuers 47.98% | ||||||||
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2039 | $ | 1,625 | $ | 1,795 | ||||
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2044 | 500 | 551 | ||||||
Dormitory Auth., Columbia University Rev. Green Bonds, Series 2016-A-1, 5.00% 2026 | 500 | 619 | ||||||
Dormitory Auth., Cornell University, Rev. Bonds, Series 2016-A, 5.00% 2033 | 1,000 | 1,167 | ||||||
Dormitory Auth., Fordham University, Rev. Bonds, Series 2011-A, 5.50% 2036 | 1,000 | 1,141 | ||||||
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2031 | 500 | 557 | ||||||
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2035 | 1,000 | 1,091 | ||||||
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2040 | 250 | 270 | ||||||
Dormitory Auth., Mount Sinai School of Medicine of New York University, Rev. Ref. Bonds, Series 2010-A, 5.00% 2021 | 1,000 | 1,106 | ||||||
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021 (preref. 2020) | 500 | 564 | ||||||
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040 (preref. 2020) | 500 | 569 | ||||||
Dormitory Auth., New School Rev. Bonds, Series 2015-A, 5.00% 2032 | 1,000 | 1,126 | ||||||
Dormitory Auth., North Shore-Long Island Jewish Obligated Group, Rev. Ref. Bonds, Series 2011-A, 5.00% 2032 | 1,500 | 1,644 | ||||||
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2022 | 200 | 228 | ||||||
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2034 | 1,000 | 1,113 | ||||||
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2011-A, 6.00% 2040 (preref. 2020) | 1,000 | 1,154 | ||||||
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2016-A, 5.00% 2033 | 400 | 448 | ||||||
Dormitory Auth., Pratt Institute, Rev. Bonds, Series 2016, 5.00% 2039 | 650 | 729 | ||||||
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2011-A, 5.00% 2024 | 500 | 565 | ||||||
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2013-E, Assured Guaranty Municipal insured, 5.00% 2022 | 1,000 | 1,167 | ||||||
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2016-A, 5.00% 2022 | 1,000 | 1,159 | ||||||
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2016-A, 5.00% 2033 | 1,000 | 1,142 | ||||||
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041 | 1,420 | 1,600 | ||||||
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-E, 5.00% 2017 | 845 | 846 | ||||||
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-E, 5.00% 2032 | 750 | 862 | ||||||
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2039 | 365 | 417 | ||||||
Dormitory Auth., The New School Rev. Bonds, Series 2016-A, 5.00% 2035 | 500 | 561 |
42 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
Principal amount | Value | |||||||
(000) | (000) | |||||||
Environmental Facs. Corp., Rev. Green Bonds (Revolving Funds), Series 2016-B, 4.00% 2036 | $ | 2,000 | $ | 2,110 | ||||
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2012, AMT, 0.85% 2030 (put 2016)1 | 750 | 750 | ||||||
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2012, AMT, 0.85% 2030 (put 2017)1 | 750 | 750 | ||||||
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2013-A, 2.75% 2017 | 1,000 | 1,006 | ||||||
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2007 Series A, 5.00% 2047 | 825 | 834 | ||||||
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.25% 2047 | 1,000 | 1,107 | ||||||
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.75% 2047 | 1,000 | 1,133 | ||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.15% 20342 | 1,250 | 1,334 | ||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.375% 20402 | 350 | 377 | ||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 3, 7.25% 20442 | 375 | 443 | ||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031 | 1,500 | 1,673 | ||||||
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049 | 1,500 | 1,637 | ||||||
Liberty Dev. Corp., Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035 | 1,000 | 1,197 | ||||||
Metropolitan Transportation Auth., Dedicated Tax Fund Bonds, Series 2004-C, AMBAC insured, 5.50% 2017 | 1,000 | 1,037 | ||||||
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, 1.66% 20201 | 2,000 | 2,022 | ||||||
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-A-2A, 1.04% 2026 (put 2017)1 | 485 | 485 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2031 | 1,000 | 1,129 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-D-1, 5.00% 2039 | 250 | 281 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 1.24% 2039 (put 2020)1 | 500 | 499 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.00% 2035 | 1,750 | 1,972 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.25% 2030 | 280 | 329 | ||||||
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2016-C-1, 4.00% 2041 | 1,000 | 1,019 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043 | 415 | 425 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, AMT, 3.50% 2034 | 580 | 596 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 194, AMT, 3.50% 2035 | 680 | 703 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 195, 4.00% 2046 | 1,970 | 2,109 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044 | 900 | 946 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 200, 3.50% 2045 | 325 | 343 | ||||||
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 52, AMT, 3.50% 2030 | 1,060 | 1,100 | ||||||
Mortgage Agcy., Mortgage Rev. Bonds, Series 46, 5.00% 2029 | 80 | 83 | ||||||
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 45, 4.50% 2029 | 220 | 227 | ||||||
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 48, 2.625% 2041 | 530 | 538 | ||||||
Port Auth., Consolidated Bonds, Series 147, AMT, FGIC-National insured, 5.00% 2021 | 500 | 504 | ||||||
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031 | 1,000 | 1,113 | ||||||
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025 | 1,000 | 1,107 | ||||||
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034 | 500 | 545 | ||||||
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2044 | 500 | 551 | ||||||
Power Auth. of the State of New York, Rev. Ref. Bonds, Series 2011-A, 5.00% 2038 | 1,500 | 1,683 | ||||||
Thruway Auth., General Rev. Bonds, Series 2014-J, 5.00% 2027 | 1,000 | 1,162 | ||||||
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2026 | 500 | 522 | ||||||
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2031 | 2,250 | 2,335 |
American Funds Tax-Exempt Funds | 43 |
American Funds Tax-Exempt Fund of New York
Bonds, notes & other debt instruments (continued) | Principal amount | Value | ||||||
(000) | (000) | |||||||
New York (continued) | ||||||||
State issuers (continued) | ||||||||
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.00% 2034 | $ | 500 | $ | 542 | ||||
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.00% 2041 | 500 | 529 | ||||||
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.25% 2050 | 1,500 | 1,587 | ||||||
TSASC, Inc., Tobacco Settlement Bonds, Series 2017-A, 5.00% 2022 | 1,000 | 1,131 | ||||||
TSASC, Inc., Tobacco Settlement Bonds, Series 2017-A, 5.00% 2025 | 750 | 865 | ||||||
Urban Dev. Corp., Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2027 | 1,500 | 1,769 | ||||||
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2032 | 1,000 | 1,161 | ||||||
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2035 | 300 | 344 | ||||||
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1, 5.25% 2038 | 1,000 | 1,080 | ||||||
Utility Debt Securitization Auth., Restructuring Bonds, Series 2016-B, 5.00% 2030 | 1,000 | 1,191 | ||||||
Utility Debt Securitization Auth., Restructuring Bonds, Series 2016-B, 5.00% 2035 | 1,000 | 1,165 | ||||||
Other securities | 19,960 | |||||||
95,231 | ||||||||
City & county issuers 42.05% | ||||||||
City of Albany, Capital Resource Corp., Rev. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2011, 6.25% 2038 (preref. 2020) | 1,000 | 1,177 | ||||||
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 | 1,549 | ||||||
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2030 | 500 | 549 | ||||||
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2040 | 1,000 | 1,093 | ||||||
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2014-A, 5.00% 2028 | 430 | 480 | ||||||
Erie County, Industrial Dev. Agcy., School Fac. Rev. Bonds (City School Dist. of the City of Buffalo Project), Series 2011-A, 5.25% 2025 | 500 | 572 | ||||||
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 | 500 | 564 | ||||||
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 | 916 | ||||||
Various Purpose G.O. Bonds, Series 2014-A, 5.00% 2028 | 1,250 | 1,427 | ||||||
Various Purpose G.O. Bonds, Series 2016-A, 5.00% 2027 | 850 | 1,004 | ||||||
Various Purpose G.O. Bonds, Series 2016-B, 5.00% 2025 | 1,000 | 1,189 | ||||||
Town of Hempstead, Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2027 | 1,300 | 1,439 | ||||||
Town of Hempstead, Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2041 | 800 | 880 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038 | 500 | 534 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-A, 5.00% 2044 | 740 | 812 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-C, 1.19% 2033 (put 2018)1 | 1,000 | 1,000 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2035 | 1,215 | 1,354 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2038 | 750 | 832 | ||||||
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-C, 1.42% 2033 (put 2018)1 | 300 | 301 | ||||||
Nassau County, Tobacco Settlement Corp., Tobacco Settlement Asset-Backed Current Interest Bonds, Series 2006-A-3, 5.125% 2046 | 2,000 | 1,888 | ||||||
Nassau County, G.O. General Improvement Bonds, Ref. Series 2016-A, 5.00% 2030 | 1,795 | 2,077 | ||||||
Nassau County, G.O. General Improvement Bonds, Series 2016-B, 5.00% 2023 | 750 | 882 | ||||||
Nassau County, G.O. General Improvement Bonds, Series 2016-C, 5.00% 2042 | 700 | 777 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2034 | 2,000 | 2,309 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2037 | 750 | 857 | ||||||
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2041 | 500 | 574 | ||||||
City of New York, G.O. Bonds, Series 2008-J-4, 1.21% 20251 | 1,500 | 1,500 | ||||||
City of New York, G.O. Bonds, Series 2008-L-1, 5.00% 2023 | 1,000 | 1,045 |
44 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
Principal amount | Value | |||||||
(000) | (000) | |||||||
City of New York, G.O. Bonds, Series 2015-A, 5.00% 2026 | $ | 1,000 | $ | 1,192 | ||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028 | 500 | 583 | ||||||
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2033 | 1,000 | 1,139 | ||||||
City of New York, G.O. Bonds, Series 2016-C, 5.00% 2031 | 1,500 | 1,743 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series C, 5.25% 2025 | 1,000 | 1,136 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2017 Series 2016-A-1, 5.00% 2035 | 1,000 | 1,148 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2027 | 750 | 888 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010 Series D, 5.00% 2023 | 1,000 | 1,115 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2037 | 500 | 567 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-C, 5.00% 2026 | 1,000 | 1,202 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-1, 5.00% 2041 | 345 | 388 | ||||||
New York City, Housing Dev. Corp. Multi-Family Rev. Bonds (8 Spruce Street), Series 2014-E, 3.50% 2048 | 1,670 | 1,643 | ||||||
New York City, Housing Dev. Corp. Multi-Family Rev. Bonds (8 Spruce Street), Series 2014-F, 4.50% 2048 | 500 | 510 | ||||||
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2011-EE, 5.375% 2043 | 1,000 | 1,129 | ||||||
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2014-EE, 5.00% 2045 | 500 | 562 | ||||||
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2015-HH, 5.00% 2039 | 500 | 568 | ||||||
Trust for Cultural Resources of the City of New York, Rev. Bonds (Juilliard School), Series 2009-B, 1.35% 2036 (put 2017) | 1,500 | 1,504 | ||||||
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2027 | 600 | 665 | ||||||
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2028 | 500 | 551 | ||||||
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2029 | 700 | 769 | ||||||
Onondaga County, Resource Recovery Agcy., Rev. Ref. Bonds, Series 2015-A, AMT, Assured Guaranty Municipal insured, 5.00% 2030 | 1,750 | 1,924 | ||||||
County of Rockland G.O. Bonds, Series 2014-A, Assured Guaranty Municipal insured, 5.00% 2024 | 1,000 | 1,151 | ||||||
Southold Local Dev. Corporation, Rev. Bonds (Peconic Landing at Southold, Inc. Project), Series 2015, 5.00% 2045 | 1,500 | 1,557 | ||||||
Suffolk County, Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030 | 1,000 | 1,093 | ||||||
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.00% 2034 | 1,380 | 1,380 | ||||||
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.125% 2042 | 4,845 | 4,846 | ||||||
Westchester County, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030 | 130 | 144 | ||||||
Westchester County, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030 (preref. 2020) | 870 | 1,014 | ||||||
Westchester County, Health Care Corp., Rev. Bonds, Series 2011-A, 5.00% 2021 | 100 | 113 | ||||||
Westchester County, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2034 | 1,150 | 1,233 | ||||||
Westchester County, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2046 | 1,000 | 1,054 | ||||||
Other securities | 19,354 | |||||||
83,446 |
American Funds Tax-Exempt Funds | 45 |
American Funds Tax-Exempt Fund of New York
Bonds, notes & other debt instruments (continued) | Principal amount | Value | ||||||
(000) | (000) | |||||||
Guam 1.48% | ||||||||
Government of Guam, Business Privilege Tax Bonds, Series 2011-A, 5.00% 2031 | $ | 1,200 | $ | 1,245 | ||||
Other securities | 1,699 | |||||||
2,944 | ||||||||
Puerto Rico 1.97% | ||||||||
Other securities | 3,919 | |||||||
Total bonds, notes & other debt instruments (cost: $181,687,000) | 185,540 |
Short-term securities 4.65% | ||||||||
Dormitory Auth. Rev., Higher Education Commercial Paper, Series 2002-C, 0.76% 4/3/2017 | 3,000 | 3,000 | ||||||
City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20361 | 1,050 | 1,050 | ||||||
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20451 | 550 | 550 | ||||||
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2006, Series 2005-B, 0.62% 20321 | 1,120 | 1,120 | ||||||
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2014, Series 2013-AA-2, 0.63% 20501 | 3,500 | 3,500 | ||||||
Total short-term securities (cost: $9,220,000) | 9,220 | |||||||
Total investment securities 98.13% (cost: $190,907,000) | 194,760 | |||||||
Other assets less liabilities 1.87% | 3,713 | |||||||
Net assets 100.00% | $ | 198,473 |
46 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date. |
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 $3,904,000, which represented 1.97% 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
American Funds Tax-Exempt Funds | 47 |
Financial statements
Statements of assets and liabilities
at January 31, 2017
American Funds Short-Term Tax-Exempt Bond Fund | Limited Term Tax-Exempt Bond Fund of America | |||||||
Assets: | ||||||||
Investment securities, at value | $ | 835,261 | $ | 3,727,723 | ||||
Cash | 925 | 12,794 | ||||||
Receivables for: | ||||||||
Sales of investments | 7,897 | 936 | ||||||
Sales of fund’s shares | 5,860 | 9,665 | ||||||
Interest | 5,464 | 32,965 | ||||||
Other | 90 | 486 | ||||||
855,497 | 3,784,569 | |||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 13,931 | 37,497 | ||||||
Repurchases of fund’s shares | 4,092 | 8,872 | ||||||
Dividends on fund’s shares | 73 | 564 | ||||||
Investment advisory services | 261 | 741 | ||||||
Services provided by related parties | 86 | 856 | ||||||
Trustees’ deferred compensation | 31 | 132 | ||||||
Other | — | * | 1 | |||||
18,474 | 48,663 | |||||||
Net assets at January 31, 2017 | $ | 837,023 | $ | 3,735,906 | ||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 840,811 | $ | 3,701,637 | ||||
Undistributed net investment income | 35 | 641 | ||||||
Accumulated net realized loss | (2,048 | ) | (496 | ) | ||||
Net unrealized (depreciation) appreciation | (1,775 | ) | 34,124 | |||||
Net assets at January 31, 2017 | $ | 837,023 | $ | 3,735,906 | ||||
Investment securities, at cost | $ | 837,036 | $ | 3,693,599 |
* | Amount less than one thousand. |
See Notes to Financial Statements
48 | American Funds Tax-Exempt Funds |
unaudited
(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 | | ||||
$ | 13,718,185 | $ | 4,920,329 | $ | 1,983,801 | $ | 194,760 | |||||||
4,633 | 7,718 | 1,405 | 1,916 | |||||||||||
33,055 | 12,008 | 7,636 | 399 | |||||||||||
39,476 | 14,722 | 5,807 | 502 | |||||||||||
136,761 | 51,280 | 26,022 | 1,871 | |||||||||||
1,959 | 767 | 286 | 26 | |||||||||||
13,934,069 | 5,006,824 | 2,024,957 | 199,474 | |||||||||||
169,834 | 41,002 | 16,677 | 750 | |||||||||||
29,958 | 11,973 | 3,283 | 84 | |||||||||||
2,873 | 1,476 | 740 | 107 | |||||||||||
2,610 | 1,247 | 511 | 57 | |||||||||||
2,887 | 1,031 | 471 | 14 | |||||||||||
558 | 104 | 130 | 1 | |||||||||||
3 | 1 | 1 | (12 | ) | ||||||||||
208,723 | 56,834 | 21,813 | 1,001 | |||||||||||
$ | 13,725,346 | $ | 4,949,990 | $ | 2,003,144 | $ | 198,473 | |||||||
$ | 13,513,712 | $ | 4,986,469 | $ | 1,996,613 | $ | 195,084 | |||||||
12,117 | 12,840 | 2,517 | 248 | |||||||||||
(27,759 | ) | (102,453 | ) | (34,405 | ) | (712 | ) | |||||||
227,276 | 53,134 | 38,419 | 3,853 | |||||||||||
$ | 13,725,346 | $ | 4,949,990 | $ | 2,003,144 | $ | 198,473 | |||||||
$ | 13,448,829 | $ | 4,867,195 | $ | 1,945,382 | $ | 190,907 |
American Funds Tax-Exempt Funds | 49 |
Statements of assets and liabilities
at January 31, 2017
| | | | American Funds Short-Term Tax-Exempt Bond Fund | | | Limited Term Tax-Exempt Bond Fund of America | | ||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||
Class A: | Net assets | $ | 741,801 | $ | 2,989,294 | |||||
Shares outstanding | 73,637 | 191,675 | ||||||||
Net asset value per share | $ | 10.07 | $ | 15.60 | ||||||
Class B: | Net assets | $ | 43 | |||||||
Shares outstanding | 3 | |||||||||
Net asset value per share | $ | 15.60 | ||||||||
Class C: | Net assets | $ | 28,873 | |||||||
Shares outstanding | 1,851 | |||||||||
Net asset value per share | $ | 15.60 | ||||||||
Class F-1: | Net assets | $ | 12,314 | $ | 85,906 | |||||
Shares outstanding | 1,222 | 5,508 | ||||||||
Net asset value per share | $ | 10.07 | $ | 15.60 | ||||||
Class F-2: | Net assets | $ | 82,898 | $ | 342,025 | |||||
Shares outstanding | 8,229 | 21,931 | ||||||||
Net asset value per share | $ | 10.07 | $ | 15.60 | ||||||
Class F-3: | Net assets | $ | 10 | $ | 10 | |||||
Shares outstanding | 1 | 1 | ||||||||
Net asset value per share | $ | 10.07 | $ | 15.60 | ||||||
Class R-6: | Net assets | $ | 289,755 | |||||||
Shares outstanding | 18,579 | |||||||||
Net asset value per share | $ | 15.60 |
See Notes to Financial Statements
50 | American Funds Tax-Exempt Funds |
unaudited
(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 | | ||||
$ | 9,278,479 | $ | 3,380,834 | $ | 1,585,720 | $ | 156,518 | |||||||
727,470 | 220,769 | 91,774 | 14,785 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 1,164 | $ | 491 | $ | 84 | $ | 21 | |||||||
91 | 32 | 5 | 2 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 490,595 | $ | 228,967 | $ | 88,987 | $ | 13,208 | |||||||
38,465 | 14,952 | 5,150 | 1,247 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 478,463 | $ | 219,466 | $ | 74,890 | $ | 2,115 | |||||||
37,513 | 14,331 | 4,334 | 200 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 3,043,186 | $ | 810,662 | $ | 253,453 | $ | 26,601 | |||||||
238,598 | 52,936 | 14,668 | 2,513 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 10 | $ | 10 | $ | 10 | $ | 10 | |||||||
1 | 1 | 1 | 1 | |||||||||||
$ | 12.75 | $ | 15.31 | $ | 17.28 | $ | 10.59 | |||||||
$ | 433,449 | $ | 309,560 | |||||||||||
33,984 | 20,214 | |||||||||||||
$ | 12.75 | $ | 15.31 |
American Funds Tax-Exempt Funds | 51 |
Statements of operations
for the six months ended January 31, 2017
| | American Funds Short-Term Tax-Exempt Bond Fund | | | Limited Term Tax-Exempt Bond Fund of America | | ||
Investment income: | ||||||||
Income: | ||||||||
Interest | $ | 6,882 | $ | 49,875 | ||||
Fees and expenses*: | ||||||||
Investment advisory services | 1,495 | 4,419 | ||||||
Distribution services | 559 | 4,895 | ||||||
Transfer agent services | 170 | 741 | ||||||
Administrative services | 60 | 343 | ||||||
Reports to shareholders | 7 | 33 | ||||||
Registration statement and prospectus | 96 | 275 | ||||||
Trustees’ compensation | 4 | 17 | ||||||
Auditing and legal | — | † | 1 | |||||
Custodian | 1 | 5 | ||||||
State and local taxes | — | 3 | ||||||
Other | 1 | 3 | ||||||
Total fees and expenses | 2,393 | 10,735 | ||||||
Net investment income | 4,489 | 39,140 | ||||||
Net realized (loss) gain and unrealized depreciation: | ||||||||
Net realized (loss) gain on investments | (509 | ) | (115 | ) | ||||
Net unrealized depreciation on investments | (10,788 | ) | (109,365 | ) | ||||
Net realized (loss) gain and unrealized depreciation | (11,297 | ) | (109,480 | ) | ||||
Net decrease in net assets resulting from operations | $ | (6,808 | ) | $ | (70,340 | ) |
* | 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 |
unaudited
(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 | | ||||
$ | 252,944 | $ | 115,410 | $ | 37,774 | $ | 3,388 | |||||||
15,567 | 7,449 | 3,094 | 349 | |||||||||||
15,227 | 6,743 | 2,665 | 274 | |||||||||||
3,760 | 1,557 | 366 | 48 | |||||||||||
1,587 | 574 | 186 | 20 | |||||||||||
121 | 45 | 19 | 2 | |||||||||||
690 | 410 | 79 | 72 | |||||||||||
70 | 19 | 12 | 1 | |||||||||||
12 | 1 | 1 | — | † | ||||||||||
16 | 6 | 3 | — | † | ||||||||||
365 | 926 | 8 | 5 | |||||||||||
9 | 4 | 2 | (13 | ) | ||||||||||
37,424 | 17,734 | 6,435 | 758 | |||||||||||
215,520 | 97,676 | 31,339 | 2,630 | |||||||||||
(7,593 | ) | 10,963 | (149 | ) | (710 | ) | ||||||||
(685,455 | ) | (307,942 | ) | (111,259 | ) | (9,713 | ) | |||||||
(693,048 | ) | (296,979 | ) | (111,408 | ) | (10,423 | ) | |||||||
$ | (477,528 | ) | $ | (199,303 | ) | $ | (80,069 | ) | $ | (7,793 | ) |
American Funds Tax-Exempt Funds | 53 |
Statements of changes in net assets
American Funds Short-Term Tax-Exempt Bond Fund | Limited Term Tax-Exempt Bond Fund of America | The Tax-Exempt Bond Fund of America | ||||||||||||||||||||||
Six months ended January 31 | Year ended July 31 | Six months ended January 31 | Year ended July 31 | Six months ended January 31 | Year ended July 31 | |||||||||||||||||||
2017* | 2016 | 2017* | 2016 | 2017* | 2016 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 4,489 | $ | 7,680 | $ | 39,140 | $ | 74,201 | $ | 215,520 | $ | 365,265 | ||||||||||||
Net realized (loss) gain | (509 | ) | (762 | ) | (115 | ) | 269 | (7,593 | ) | 559 | ||||||||||||||
Net unrealized (depreciation) appreciation | (10,788 | ) | 4,308 | (109,365 | ) | 27,733 | (685,455 | ) | 383,061 | |||||||||||||||
Net (decrease) increase in net assets resulting from operations | (6,808 | ) | 11,226 | (70,340 | ) | 102,203 | (477,528 | ) | 748,885 | |||||||||||||||
Dividends paid or accrued to shareholders from net investment income | (4,500 | ) | (7,612 | ) | (39,110 | ) | (74,286 | ) | (213,816 | ) | (364,050 | ) | ||||||||||||
Net capital share transactions | 67,218 | 51,287 | 95,566 | 538,776 | 599,135 | 2,957,629 | ||||||||||||||||||
Total increase (decrease) in net assets | 55,910 | 54,901 | (13,884 | ) | 566,693 | (92,209 | ) | 3,342,464 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 781,113 | 726,212 | 3,749,790 | 3,183,097 | 13,817,555 | 10,475,091 | ||||||||||||||||||
End of year | $ | 837,023 | $ | 781,113 | $ | 3,735,906 | $ | 3,749,790 | $ | 13,725,346 | $ | 13,817,555 | ||||||||||||
Undistributed net investment income | $ | 35 | $ | 46 | $ | 641 | $ | 611 | $ | 12,117 | $ | 10,413 |
* | Unaudited. |
See Notes to Financial Statements
54 | American Funds Tax-Exempt Funds |
(dollars in thousands)
American High-Income Municipal Bond Fund | | The Tax-Exempt Fund of California | | American Funds Tax-Exempt Fund of New York | ||||||||||||||||||
Six months ended January 31 2017* | | Year ended July 31 2016 | | Six months ended January 31 2017* | | Year ended July 31 2016 | | Six months ended January 31 2017* | | Year ended July 31 2016 | ||||||||||||
$ | 97,676 | $ | 168,148 | $ | 31,339 | $ | 57,271 | $ | 2,630 | $ | 4,494 | |||||||||||
10,963 | 9,631 | (149 | ) | (415 | ) | (710 | ) | 271 | ||||||||||||||
(307,942 | ) | 208,275 | (111,259 | ) | 61,026 | (9,713 | ) | 7,254 | ||||||||||||||
(199,303 | ) | 386,054 | (80,069 | ) | 117,882 | (7,793 | ) | 12,019 | ||||||||||||||
(94,576 | ) | (162,941 | ) | (30,867 | ) | (56,704 | ) | (2,576 | ) | (4,403 | ) | |||||||||||
151,354 | 1,267,761 | 43,212 | 347,830 | (57 | ) | 45,587 | ||||||||||||||||
(142,525 | ) | 1,490,874 | (67,724 | ) | 409,008 | (10,426 | ) | 53,203 | ||||||||||||||
5,092,515 | 3,601,641 | 2,070,868 | 1,661,860 | 208,899 | 155,696 | |||||||||||||||||
$ | 4,949,990 | $ | 5,092,515 | $ | 2,003,144 | $ | 2,070,868 | $ | 198,473 | $ | 208,899 | |||||||||||
$ | 12,840 | $ | 9,740 | $ | 2,517 | $ | 2,045 | $ | 248 | $ | 194 |
American Funds Tax-Exempt Funds | 55 |
Notes to financial statements | unaudited |
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 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 to provide a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is 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. Its secondary objective is preservation of capital.
American Funds Short-Term Tax-Exempt Bond Fund has four share classes (Class A, as well as three F share classes, F-1, F-2 and F-3). Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund each have seven share classes consisting of six retail share classes (Classes A, B and C, as well as three F share classes, F-1, F-2 and F-3) 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 six retail share classes (Classes A, B and C, as well as three F share classes, F-1, F-2 and F-3). 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, F-2 and F-3 | 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. |
On January 27, 2017, each fund made an additional retail plan share class (Class F-3) available for sale pursuant to an amendment to its registration statement filed with the U.S. Securities and Exchange Commission. Refer to the fund’s prospectus for more details.
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
56 | American Funds Tax-Exempt Funds |
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.
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. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. 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 the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their 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 not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.
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;
American Funds Tax-Exempt Funds | 57 |
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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — Each fund’s board of trustees has delegated authority to the funds’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the boards of trustees with supplemental information to support the changes. Each fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The funds’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The funds’ investment adviser classifies each fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. 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 January 31, 2017, 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 exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by the funds may 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 initiatives.
Investing in municipal securities — The yield and/or value of the funds’ 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 funds invest in obligations of a municipal issuer, the volatility, credit quality and performance of the funds 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 funds 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.
58 | American Funds Tax-Exempt Funds |
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 the funds having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
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 the funds invest. 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 debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in similar municipal bonds — Investing significantly in municipal obligations of issuers in the same state or backed by revenues of similar types of projects or industries may make the funds more susceptible to certain economic, political or regulatory occurrences. As a result, the potential for fluctuations in the funds’ share price 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.
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.
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 its 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.
American Funds Tax-Exempt Funds | 59 |
As of and during the period ended January 31, 2017, 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 interest or penalties.
The funds are not subject to examination by U.S. federal tax authorities for tax years before 2012 or by state tax authorities for tax years before 2011.
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 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.
As indicated in the following tables, all of the funds had capital loss carryforwards available at July 31, 2016. These will be used to offset any capital gains realized by these funds in future years through the expiration dates, if applicable. None of the funds will 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.
The components of distributable earnings on a tax basis are reported as of each fund’s most recent year-end. As of July 31, 2016, the components of distributable earnings on a tax basis for each fund were as follows (dollars in thousands):
American Funds Short-Term Tax-Exempt Bond Fund | Limited Term Tax-Exempt Bond Fund of America | The Tax-Exempt Bond Fund of America | American High-Income Municipal Bond Fund | The Tax-Exempt Fund of California | American Funds Tax-Exempt Fund of New York | |||||||||||||||||||
Undistributed tax-exempt income | $ | 103 | $ | 577 | $ | 3,596 | $ | 2,754 | $ | 757 | $ | 138 | ||||||||||||
Capital loss carryforward: | ||||||||||||||||||||||||
No expiration | (1,539 | ) | (380 | ) | (10,160 | ) | (1,323 | ) | (463 | ) | (3 | ) | ||||||||||||
Expiring 2017 | — | — | (2,271 | ) | (14,384 | ) | (3,446 | ) | — | |||||||||||||||
Expiring 2018 | — | — | (15,752 | ) | (69,970 | ) | (30,345 | ) | — | |||||||||||||||
Expiring 2019 | — | — | — | (24,408 | ) | — | — | |||||||||||||||||
$ | (1,539 | ) | $ | (380 | ) | $ | (28,183 | ) | $ | (110,085 | ) | $ | (34,254 | ) | $ | (3 | ) |
As of January 31, 2017, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
American Funds Short-Term Tax-Exempt Bond Fund | Limited Term Tax-Exempt Bond Fund of America | The Tax-Exempt Bond Fund of America | American High-Income Municipal Bond Fund | The Tax-Exempt Fund of California | American Funds Tax-Exempt Fund of New York | |||||||||||||||||||
Gross unrealized appreciation on investment securities | $ | 2,833 | $ | 63,586 | $ | 481,227 | $ | 188,663 | $ | 81,757 | $ | 6,944 | ||||||||||||
Gross unrealized depreciation on investment securities | (4,583 | ) | (29,231 | ) | (202,747 | ) | (125,486 | ) | (40,886 | ) | (2,859 | ) | ||||||||||||
Net unrealized (depreciation) appreciation on investment securities | (1,750 | ) | 34,355 | 278,480 | 63,177 | 40,871 | 4,085 | |||||||||||||||||
Cost of investment securities | 837,011 | 3,693,368 | 13,439,705 | 4,857,152 | 1,942,930 | 190,675 |
60 | American Funds Tax-Exempt Funds |
Tax-exempt income distributions paid or accrued to shareholders of each fund were as follows (dollars in thousands):
American Funds Short-Term Tax-Exempt Bond Fund
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 3,970 | $ | 6,775 | ||||
Class F-1 | 57 | 90 | ||||||
Class F-2 | 473 | 747 | ||||||
Class F-3* | — | † | ||||||
Total | $ | 4,500 | $ | 7,612 |
Limited Term Tax-Exempt Bond Fund of America
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 30,939 | $ | 60,916 | ||||
Class B | 1 | 7 | ||||||
Class C | 188 | 422 | ||||||
Class F-1 | 863 | 1,795 | ||||||
Class F-2 | 3,687 | 5,409 | ||||||
Class F-3* | — | † | ||||||
Class R-6 | 3,432 | 5,737 | ||||||
Total | $ | 39,110 | $ | 74,286 |
The Tax-Exempt Bond Fund of America
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 146,237 | $ | 252,498 | ||||
Class B | 25 | 127 | ||||||
Class C | 5,848 | 9,193 | ||||||
Class F-1 | 7,401 | 37,801 | ||||||
Class F-2 | 47,446 | 53,592 | ||||||
Class F-3* | — | † | ||||||
Class R-6 | 6,859 | 10,839 | ||||||
Total | $ | 213,816 | $ | 364,050 |
American High-Income Municipal Bond Fund
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 64,964 | $ | 118,431 | ||||
Class B | 13 | 76 | ||||||
Class C | 3,599 | 6,480 | ||||||
Class F-1 | 4,590 | 9,162 | ||||||
Class F-2 | 15,635 | 19,563 | ||||||
Class F-3* | — | † | ||||||
Class R-6 | 5,775 | 9,229 | ||||||
Total | $ | 94,576 | $ | 162,941 |
The Tax-Exempt Fund of California
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 24,981 | $ | 47,262 | ||||
Class B | 2 | 21 | ||||||
Class C | 1,059 | 1,955 | ||||||
Class F-1 | 1,145 | 2,131 | ||||||
Class F-2 | 3,680 | 5,335 | ||||||
Class F-3* | — | † | ||||||
Total | $ | 30,867 | $ | 56,704 |
See page 62 for footnotes.
American Funds Tax-Exempt Funds | 61 |
American Funds Tax-Exempt Fund of New York
Six months ended | Year ended | |||||||
Share class | January 31, 2017 | July 31, 2016 | ||||||
Class A | $ | 2,021 | $ | 3,489 | ||||
Class B | — | † | 1 | |||||
Class C | 120 | 207 | ||||||
Class F-1 | 27 | 43 | ||||||
Class F-2 | 408 | 663 | ||||||
Class F-3* | — | † | ||||||
Total | $ | 2,576 | $ | 4,403 |
* | Class F-3 shares were offered beginning January 27, 2017. |
† | Amount less than one thousand. |
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.
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 agreement for each fund, except American Funds Short-Term Tax-Exempt Bond Fund, also provides for monthly fees accrued daily based on a series of decreasing rates on each fund’s monthly gross income.
The range 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 | Annualized rates for the six months ended | ||||||||||||||||||||||||||||||||
Fund | Beginning with | Ending with | Up to | In excess of | Beginning with | Ending with | Up to | In excess of | January 31, 2017 | |||||||||||||||||||||||||||
American Funds Short-Term Tax-Exempt Bond Fund | .390 | % | .290 | % | $ | .20 | $ | 1.2 | .364 | % | ||||||||||||||||||||||||||
Limited Term Tax-Exempt Bond Fund of America | .300 | .150 | .06 | 1.0 | 3.00 | % | 2.50 | % | $ | 3,333,333 | $ | 3,333,333 | .230 | |||||||||||||||||||||||
The Tax-Exempt Bond Fund of America | .300 | .120 | .06 | 10.0 | 3.00 | 2.00 | 3,333,333 | 8,333,333 | .222 | |||||||||||||||||||||||||||
American High-Income Municipal Bond Fund | .300 | .150 | .06 | 3.0 | 3.00 | 2.50 | 3,333,333 | 3,333,333 | .292 | |||||||||||||||||||||||||||
The Tax-Exempt Fund of California | .300 | .180 | .06 | 1.0 | 3.00 | 2.50 | 3,333,333 | 3,333,333 | .298 | |||||||||||||||||||||||||||
American Funds Tax-Exempt Fund of New York | .300 | .180 | .06 | 1.0 | 3.00 | 2.50 | 3,333,333 | 3,333,333 | .333 |
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class of each fund. The principal class-specific fees and expenses are described below:
Distribution services — Each fund has plans of distribution for all share classes, except Class F-2, F-3 and 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
62 | American Funds Tax-Exempt Funds |
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 |
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 January 31, 2017, unreimbursed expenses subject to reimbursement for Class A shares of each fund were as follows (dollars in thousands):
Fund | Class A | |||
American Funds Short-Term Tax-Exempt Bond Fund | $ | 1,214 | ||
Limited-Term Tax-Exempt Bond Fund of America | 744 | |||
The Tax-Exempt Bond Fund of America | 9,471 | |||
American High-Income Municipal Bond Fund | — | |||
The Tax-Exempt Fund of California | 1,581 | |||
American Funds Tax-Exempt Fund of New York | 25 |
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 six months ended January 31, 2017, class-specific expenses under the agreements for each fund were as follows (dollars in thousands):
American Funds Short-Term Tax-Exempt Bond Fund
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class A | $542 | $116 | $36 | |||||||||
Class F-1 | 17 | 8 | 3 | |||||||||
Class F-2 | Not applicable | 46 | 21 | |||||||||
Class F-3* | Not applicable | — | — | † | ||||||||
Total class-specific expenses | $559 | $170 | $60 |
Limited Term Tax-Exempt Bond Fund of America
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class A | $4,635 | $496 | $155 | |||||||||
Class B | — | † | — | † | Not applicable | |||||||
Class C | 149 | 5 | 7 | |||||||||
Class F-1 | 111 | 54 | 22 | |||||||||
Class F-2 | Not applicable | 184 | 84 | |||||||||
Class F-3* | Not applicable | — | — | † | ||||||||
Class R-6 | Not applicable | 2 | 75 | |||||||||
Total class-specific expenses | $4,895 | $741 | $343 |
See page 64 for footnotes.
American Funds Tax-Exempt Funds | 63 |
The Tax-Exempt Bond Fund of America
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class A | $11,995 | $1,600 | $480 | |||||||||
Class B | 10 | — | † | Not applicable | ||||||||
Class C | 2,591 | 88 | 130 | |||||||||
Class F-1 | 631 | 301 | 126 | |||||||||
Class F-2 | Not applicable | 1,768 | 747 | |||||||||
Class F-3* | Not applicable | — | — | † | ||||||||
Class R-6 | Not applicable | 3 | 104 | |||||||||
Total class-specific expenses | $15,227 | $3,760 | $1,587 |
American High-Income Municipal Bond Fund
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class A | $5,202 | $862 | $176 | |||||||||
Class B | 4 | — | † | Not applicable | ||||||||
Class C | 1,220 | 61 | 61 | |||||||||
Class F-1 | 317 | 159 | 64 | |||||||||
Class F-2 | Not applicable | 472 | 201 | |||||||||
Class F-3* | Not applicable | — | — | † | ||||||||
Class R-6 | Not applicable | 3 | 72 | |||||||||
Total class-specific expenses | $6,743 | $1,557 | $574 |
The Tax-Exempt Fund of California
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | �� | ||||||||
Class A | $2,085 | $182 | $83 | |||||||||
Class B | 1 | — | † | Not applicable | ||||||||
Class C | 480 | 11 | 24 | |||||||||
Class F-1 | 99 | 46 | 20 | |||||||||
Class F-2 | Not applicable | 127 | 59 | |||||||||
Class F-3* | Not applicable | — | — | |||||||||
Total class-specific expenses | $2,665 | $366 | $186 |
American Funds Tax-Exempt Fund of New York
Distribution | Transfer agent | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class A | $202 | $27 | $8 | |||||||||
Class B | — | † | — | † | Not applicable | |||||||
Class C | 71 | 3 | 3 | |||||||||
Class F-1 | 1 | 1 | 1 | |||||||||
Class F-2 | Not applicable | 17 | 8 | |||||||||
Class F-3* | Not applicable | — | — | † | ||||||||
Total class-specific expenses | $274 | $48 | $20 |
* | Class F-3 shares were offered beginning January 27, 2017. |
† | 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 reflects the current fees (either paid in cash or deferred) and a net increase in the value of the following deferred amounts (dollars in thousands):
Increase in value of | Total trustees’ | |||||||||||
Fund | Current fees | deferred amounts | compensation | |||||||||
American Funds Short-Term Tax-Exempt Bond Fund | $ | 3 | $ | 1 | $ | 4 | ||||||
Limited Term Tax-Exempt Bond Fund of America | 12 | 5 | 17 | |||||||||
The Tax-Exempt Bond Fund of America | 44 | 26 | 70 | |||||||||
American High-Income Municipal Bond Fund | 15 | 4 | 19 | |||||||||
The Tax-Exempt Fund of California | 7 | 5 | 12 | |||||||||
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.
Security transactions with related funds — Each fund may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by each fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act. During the six months ended January 31, 2017, such purchase transactions occurred between American Funds Short-Term Tax-Exempt Bond Fund and related funds in the amount of $12,543,000. There were no sale transactions between American Funds Short-Term Tax-Exempt Bond Fund and related funds during the period.
64 | 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
Sales1 | Reinvestments of dividends | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 240,612 | 23,842 | $ | 3,751 | 371 | $ | (180,381 | ) | (17,886 | ) | $ | 63,982 | 6,327 | ||||||||||||||||||
Class F-1 | 3,148 | 312 | 56 | 5 | (3,841 | ) | (381 | ) | (637 | ) | (64 | ) | ||||||||||||||||||||
Class F-2 | 47,764 | 4,728 | 390 | 39 | (44,291 | ) | (4,387 | ) | 3,863 | 380 | ||||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
Total net increase (decrease) | $ | 291,534 | 28,883 | $ | 4,197 | 415 | $ | (228,513 | ) | (22,654 | ) | $ | 67,218 | 6,644 | ||||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 265,488 | 26,090 | $ | 6,336 | 622 | $ | (240,607 | ) | (23,645 | ) | $ | 31,217 | 3,067 | ||||||||||||||||||
Class F-1 | 7,767 | 763 | 90 | 9 | (4,002 | ) | (394 | ) | 3,855 | 378 | ||||||||||||||||||||||
Class F-2 | 62,784 | 6,169 | 603 | 59 | (47,172 | ) | (4,638 | ) | 16,215 | 1,590 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 336,039 | 33,022 | $ | 7,029 | 690 | $ | (291,781 | ) | (28,677 | ) | $ | 51,287 | 5,035 | ||||||||||||||||||
Limited Term Tax-Exempt Bond Fund of America | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 519,094 | 32,980 | $ | 29,188 | 1,854 | $ | (526,237 | ) | (33,573 | ) | $ | 22,045 | 1,261 | ||||||||||||||||||
Class B | 3 | — | 3 | 1 | — | 3 | (233 | ) | (14 | ) | (229 | ) | (14 | ) | ||||||||||||||||||
Class C | 7,280 | 464 | 182 | 11 | (8,220 | ) | (523 | ) | (758 | ) | (48 | ) | ||||||||||||||||||||
Class F-1 | 16,367 | 1,042 | 832 | 53 | (18,525 | ) | (1,182 | ) | (1,326 | ) | (87 | ) | ||||||||||||||||||||
Class F-2 | 194,524 | 12,341 | 3,252 | 207 | (136,782 | ) | (8,728 | ) | 60,994 | 3,820 | ||||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
Class R-6 | 44,774 | 2,823 | 3,431 | 218 | (33,375 | ) | (2,140 | ) | 14,830 | 901 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 782,052 | 49,651 | $ | 36,886 | 2,343 | $ | (723,372 | ) | (46,160 | ) | $ | 95,566 | 5,834 | ||||||||||||||||||
Sales | Reinvestments of dividends | Repurchases | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 770,995 | 48,281 | $ | 56,942 | 3,566 | $ | (466,226 | ) | (29,211 | ) | $ | 361,711 | 22,636 | ||||||||||||||||||
Class B | 144 | 9 | 7 | — | 3 | (597 | ) | (37 | ) | (446 | ) | (28 | ) | |||||||||||||||||||
Class C | 11,072 | 693 | 408 | 26 | (11,244 | ) | (705 | ) | 236 | 14 | ||||||||||||||||||||||
Class F-1 | 24,656 | 1,544 | 1,728 | 108 | (20,991 | ) | (1,315 | ) | 5,393 | 337 | ||||||||||||||||||||||
Class F-2 | 143,068 | 8,950 | 4,556 | 286 | (66,832 | ) | (4,185 | ) | 80,792 | 5,051 | ||||||||||||||||||||||
Class R-6 | 101,074 | 6,329 | 5,737 | 359 | (15,721 | ) | (986 | ) | 91,090 | 5,702 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,051,009 | 65,806 | $ | 69,378 | 4,345 | $ | (581,611 | ) | (36,439 | ) | $ | 538,776 | 33,712 |
See page 67 for footnotes.
American Funds Tax-Exempt Funds | 65 |
The Tax-Exempt Bond Fund of America
Sales1 | Issued in connection with the mergers | Reinvestments of dividends | Repurchases1 | Net increase (decrease) | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
Class A | $ | 1,053,950 | 80,626 | $ | 135,485 | 10,430 | $ | (946,936 | ) | (73,509 | ) | $ | 242,499 | 17,547 | ||||||||||||||||||||||||||
Class B | 4 | — | 3 | 24 | 2 | (1,975 | ) | (151 | ) | (1,947 | ) | (149 | ) | |||||||||||||||||||||||||||
Class C | 70,821 | 5,397 | 5,559 | 428 | (77,079 | ) | (5,952 | ) | (699 | ) | (127 | ) | ||||||||||||||||||||||||||||
Class F-1 | 75,376 | 5,818 | 7,123 | 548 | (96,589 | ) | (7,487 | ) | (14,090 | ) | (1,121 | ) | ||||||||||||||||||||||||||||
Class F-2 | 758,379 | 58,499 | 45,186 | 3,479 | (493,467 | ) | (38,326 | ) | 310,098 | 23,652 | ||||||||||||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||||||||||
Class R-6 | 69,352 | 5,317 | 6,859 | 528 | (12,947 | ) | (1,014 | ) | 63,264 | 4,831 | ||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 2,027,892 | 155,658 | $ | 200,236 | 15,415 | $ | (1,628,993 | ) | (126,439 | ) | $ | 599,135 | 44,634 | ||||||||||||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||||||||||
Class A | $ | 1,871,164 | 141,849 | $ | 608,701 | 45,527 | $ | 232,021 | 17,617 | $ | (850,880 | ) | (64,706 | ) | $ | 1,861,006 | 140,287 | |||||||||||||||||||||||
Class B | 188 | 14 | 336 | 25 | 122 | 9 | (4,787 | ) | (363 | ) | (4,141 | ) | (315 | ) | ||||||||||||||||||||||||||
Class C | 159,538 | 12,081 | 63,427 | 4,744 | 8,714 | 661 | (76,537 | ) | (5,817 | ) | 155,142 | 11,669 | ||||||||||||||||||||||||||||
Class F-1 | 444,340 | 34,050 | 37,279 | 2,788 | 37,270 | 2,843 | (1,510,010 | ) | (114,741 | ) | (991,121 | ) | (75,060 | ) | ||||||||||||||||||||||||||
Class F-2 | 2,030,700 | 154,105 | 76,119 | 5,693 | 50,029 | 3,784 | (329,704 | ) | (24,984 | ) | 1,827,144 | 138,598 | ||||||||||||||||||||||||||||
Class R-6 | 108,885 | 8,267 | 10,841 | 823 | (10,127 | ) | (773 | ) | 109,599 | 8,317 | ||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 4,614,815 | 350,366 | $ | 785,862 | 58,777 | $ | 338,997 | 25,737 | $ | (2,782,045 | ) | (211,384 | ) | $ | 2,957,629 | 223,496 |
Issued in connection | Issued in connection | |||||||||||||||||||||||||||||||||||||||
with the merger of | with the merger of | Total issued | ||||||||||||||||||||||||||||||||||||||
the Tax-Exempt Fund | the Tax-Exempt Fund | in connection | ||||||||||||||||||||||||||||||||||||||
of Maryland | of Virginia | with the mergers | ||||||||||||||||||||||||||||||||||||||
Merger details | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||||||
Class A | $ | 236,260 | 17,671 | $ | 372,441 | 27,856 | $ | 608,701 | 45,527 | |||||||||||||||||||||||||||||||
Class B | 105 | 8 | 231 | 17 | 336 | 25 | ||||||||||||||||||||||||||||||||||
Class C | 28,452 | 2,128 | 34,975 | 2,616 | 63,427 | 4,744 | ||||||||||||||||||||||||||||||||||
Class F-1 | 15,686 | 1,173 | 21,593 | 1,615 | 37,279 | 2,788 | ||||||||||||||||||||||||||||||||||
Class F-2 | 28,222 | 2,111 | 47,897 | 3,582 | 76,119 | 5,693 | ||||||||||||||||||||||||||||||||||
Total issued | $ | 308,725 | 23,091 | $ | 477,137 | 35,686 | $ | 785,862 | 58,777 |
American High-Income Municipal Bond Fund
Sales1 | Reinvestments of dividends | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 436,450 | 27,756 | $ | 59,939 | 3,825 | $ | (432,480 | ) | (27,854 | ) | $ | 63,909 | 3,727 | ||||||||||||||||||
Class B | 31 | 2 | 13 | 1 | (776 | ) | (49 | ) | (732 | ) | (46 | ) | ||||||||||||||||||||
Class C | 32,222 | 2,037 | 3,369 | 215 | (38,791 | ) | (2,491 | ) | (3,200 | ) | (239 | ) | ||||||||||||||||||||
Class F-1 | 43,891 | 2,786 | 4,470 | 285 | (95,569 | ) | (6,113 | ) | (47,208 | ) | (3,042 | ) | ||||||||||||||||||||
Class F-2 | 255,954 | 16,369 | 13,986 | 893 | (187,893 | ) | (12,114 | ) | 82,047 | 5,148 | ||||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
Class R-6 | 50,753 | 3,243 | 5,775 | 369 | — | — | 56,528 | 3,612 | ||||||||||||||||||||||||
Total net increase (decrease) | $ | 819,311 | 52,194 | $ | 87,552 | 5,588 | $ | (755,509 | ) | (48,621 | ) | $ | 151,354 | 9,161 | ||||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 916,799 | 58,141 | $ | 109,175 | 6,926 | $ | (367,188 | ) | (23,358 | ) | $ | 658,786 | 41,709 | ||||||||||||||||||
Class B | 256 | 16 | 72 | 4 | (2,546 | ) | (162 | ) | (2,218 | ) | (142 | ) | ||||||||||||||||||||
Class C | 89,022 | 5,638 | 6,037 | 383 | (41,568 | ) | (2,642 | ) | 53,491 | 3,379 | ||||||||||||||||||||||
Class F-1 | 121,444 | 7,680 | 8,917 | 566 | (68,553 | ) | (4,339 | ) | 61,808 | 3,907 | ||||||||||||||||||||||
Class F-2 | 559,242 | 35,343 | 17,128 | 1,084 | (149,558 | ) | (9,505 | ) | 426,812 | 26,922 | ||||||||||||||||||||||
Class R-6 | 62,899 | 3,986 | 9,230 | 585 | (3,047 | ) | (198 | ) | 69,082 | 4,373 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,749,662 | 110,804 | $ | 150,559 | 9,548 | $ | (632,460 | ) | (40,204 | ) | $ | 1,267,761 | 80,148 |
66 | 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 | ||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 159,121 | 8,959 | $ | 22,178 | 1,258 | $ | (184,133 | ) | (10,545 | ) | $ | (2,834 | ) | (328 | ) | ||||||||||||||||
Class B | 1 | — | 3 | 2 | — | 3 | (172 | ) | (9 | ) | (169 | ) | (9 | ) | ||||||||||||||||||
Class C | 15,485 | 866 | 1,003 | 57 | (19,442 | ) | (1,105 | ) | (2,954 | ) | (182 | ) | ||||||||||||||||||||
Class F-1 | 13,318 | 749 | 1,075 | 61 | (17,968 | ) | (1,020 | ) | (3,575 | ) | (210 | ) | ||||||||||||||||||||
Class F-2 | 111,424 | 6,342 | 3,154 | 179 | (61,844 | ) | (3,553 | ) | 52,734 | 2,968 | ||||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
Total net increase (decrease) | $ | 299,359 | 16,917 | $ | 27,412 | 1,555 | $ | (283,559 | ) | (16,232 | ) | $ | 43,212 | 2,240 | ||||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 364,822 | 20,350 | $ | 41,439 | 2,313 | $ | (165,245 | ) | (9,243 | ) | $ | 241,016 | 13,420 | ||||||||||||||||||
Class B | 36 | 2 | 20 | 1 | (1,162 | ) | (65 | ) | (1,106 | ) | (62 | ) | ||||||||||||||||||||
Class C | 33,775 | 1,879 | 1,844 | 103 | (18,810 | ) | (1,052 | ) | 16,809 | 930 | ||||||||||||||||||||||
Class F-1 | 26,848 | 1,496 | 1,985 | 111 | (10,978 | ) | (613 | ) | 17,855 | 994 | ||||||||||||||||||||||
Class F-2 | 86,120 | 4,793 | 4,508 | 252 | (17,372 | ) | (969 | ) | 73,256 | 4,076 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 511,601 | 28,520 | $ | 49,796 | 2,780 | $ | (213,567 | ) | (11,942 | ) | $ | 347,830 | 19,358 |
American Funds Tax-Exempt Fund of New York
Sales1 | Reinvestments of dividends | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended January 31, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 27,451 | 2,538 | $ | 1,515 | 141 | $ | (25,965 | ) | (2,418 | ) | $ | 3,001 | 261 | ||||||||||||||||||
Class B | 11 | — | 3 | — | 3 | — | 3 | (5 | ) | — | 3 | 6 | — | 3 | ||||||||||||||||||
Class C | 1,838 | 169 | 113 | 10 | (2,019 | ) | (190 | ) | (68 | ) | (11 | ) | ||||||||||||||||||||
Class F-1 | 637 | 58 | 20 | 2 | (573 | ) | (53 | ) | 84 | 7 | ||||||||||||||||||||||
Class F-2 | 4,896 | 452 | 341 | 32 | (8,327 | ) | (788 | ) | (3,090 | ) | (304 | ) | ||||||||||||||||||||
Class F-32 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
Total net increase (decrease) | $ | 34,843 | 3,218 | $ | 1,989 | 185 | $ | (36,889 | ) | (3,449 | ) | $ | (57 | ) | (46 | ) | ||||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 42,821 | 3,939 | $ | 2,365 | 217 | $ | (13,606 | ) | (1,255 | ) | $ | 31,580 | 2,901 | ||||||||||||||||||
Class B | 3 | 1 | — | 3 | — | 3 | (33 | ) | (3 | ) | (30 | ) | (2 | ) | ||||||||||||||||||
Class C | 6,364 | 587 | 195 | 18 | (2,798 | ) | (257 | ) | 3,761 | 348 | ||||||||||||||||||||||
Class F-1 | 676 | 63 | 25 | 2 | (257 | ) | (24 | ) | 444 | 41 | ||||||||||||||||||||||
Class F-2 | 13,967 | 1,282 | 540 | 50 | (4,675 | ) | (428 | ) | 9,832 | 904 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 63,831 | 5,872 | $ | 3,125 | 287 | $ | (21,369 | ) | (1,967 | ) | $ | 45,587 | 4,192 |
1 | Includes exchanges between share classes of the fund. |
2 | Class F-3 shares were offered beginning January 27, 2017. |
3 | Amount less than one thousand. |
8. Investment transactions
Each fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, during the six months ended January 31, 2017, as follows (dollars in thousands):
Fund | Purchases | Sales | ||||||
American Funds Short-Term Tax-Exempt Bond Fund | $ | 171,558 | $ | 115,471 | ||||
Limited Term Tax-Exempt Bond Fund of America | 648,898 | 464,777 | ||||||
The Tax-Exempt Bond Fund of America | 1,915,971 | 1,214,720 | ||||||
American High-Income Municipal Bond Fund | 1,036,009 | 796,072 | ||||||
The Tax-Exempt Fund of California | 247,351 | 217,926 | ||||||
American Funds Tax-Exempt Fund of New York | 26,155 | 25,138 |
American Funds Tax-Exempt Funds | 67 |
9. Ownership concentration
At January 31, 2017, CRMC held aggregate ownership of 21% 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.
68 | American Funds Tax-Exempt Funds |
Financial highlights
American Funds Short-Term Tax-Exempt Bond Fund
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operation | 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: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 10.22 | $ | .06 | $ | (.15 | ) | $ | (.09 | ) | $ | (.06 | ) | $ | — | $ | (.06 | ) | $ | 10.07 | (.92 | )%5 | $ | 742 | .58 | %6 | 1.09 | %6 | ||||||||||||||||||||
7/31/2016 | 10.17 | .10 | .05 | .15 | (.10 | ) | — | (.10 | ) | 10.22 | 1.51 | 688 | .59 | 1.02 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 10.25 | .11 | (.08 | ) | .03 | (.11 | ) | — | (.11 | ) | 10.17 | .26 | 653 | .58 | 1.04 | |||||||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .11 | .04 | .15 | (.11 | ) | — | (.11 | ) | 10.25 | 1.43 | 737 | .58 | 1.04 | ||||||||||||||||||||||||||||||||||
7/31/2013 | 10.32 | .13 | (.11 | ) | .02 | (.13 | ) | — | 7 | (.13 | ) | 10.21 | .16 | 701 | .59 | 1.21 | ||||||||||||||||||||||||||||||||
7/31/2012 | 10.23 | .13 | .09 | .22 | (.13 | ) | — | (.13 | ) | 10.32 | 2.17 | 606 | .59 | 1.27 | ||||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 10.22 | .04 | (.15 | ) | (.11 | ) | (.04 | ) | — | (.04 | ) | 10.07 | (1.04 | )5 | 12 | .81 | 6 | .86 | 6 | |||||||||||||||||||||||||||||
7/31/2016 | 10.17 | .08 | .05 | .13 | (.08 | ) | — | (.08 | ) | 10.22 | 1.29 | 13 | .81 | .80 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 10.25 | .08 | (.08 | ) | — | (.08 | ) | — | (.08 | ) | 10.17 | .05 | 9 | .80 | .83 | |||||||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .08 | .04 | .12 | (.08 | ) | — | (.08 | ) | 10.25 | 1.19 | 14 | .82 | .80 | ||||||||||||||||||||||||||||||||||
7/31/2013 | 10.32 | .10 | (.11 | ) | (.01 | ) | (.10 | ) | — | 7 | (.10 | ) | 10.21 | (.08 | ) | 30 | .84 | .96 | ||||||||||||||||||||||||||||||
7/31/2012 | 10.23 | .11 | .09 | .20 | (.11 | ) | — | (.11 | ) | 10.32 | 1.98 | 18 | .78 | 1.09 | ||||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 10.22 | .06 | (.15 | ) | (.09 | ) | (.06 | ) | — | (.06 | ) | 10.07 | (.91 | )5 | 83 | .55 | 6 | 1.13 | 6 | |||||||||||||||||||||||||||||
7/31/2016 | 10.17 | .11 | .05 | .16 | (.11 | ) | — | (.11 | ) | 10.22 | 1.55 | 80 | .56 | 1.06 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 10.25 | .11 | (.08 | ) | .03 | (.11 | ) | — | (.11 | ) | 10.17 | .29 | 64 | .55 | 1.08 | |||||||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .11 | .04 | .15 | (.11 | ) | — | (.11 | ) | 10.25 | 1.47 | 46 | .54 | 1.07 | ||||||||||||||||||||||||||||||||||
7/31/2013 | 10.32 | .13 | (.11 | ) | .02 | (.13 | ) | — | 7 | (.13 | ) | 10.21 | .19 | 37 | .56 | 1.23 | ||||||||||||||||||||||||||||||||
7/31/2012 | 10.23 | .14 | .09 | .23 | (.14 | ) | — | (.14 | ) | 10.32 | 2.24 | 15 | .52 | 1.33 | ||||||||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4,8 | 10.07 | — | 7 | — | 7 | — | 7 | — | 7 | — | — | 7 | 10.07 | .02 | 5 | — | 9 | — | 5,10 | .02 | 5 |
Six months ended | ||||||||||||||||||||||||
January 31, | Year ended July 31 | |||||||||||||||||||||||
20173,4,5 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 16% | 21% | 38% | 20% | 22% | 14% |
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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | Amount less than $.01. |
8 | Class F-3 shares were offered beginning January 27, 2017. |
9 | Amount less than $1 million. |
10 | Amount less than .01%. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 69 |
Financial highlights (continued)
Limited Term Tax-Exempt Bond Fund of America
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total 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: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 16.04 | $ | .16 | $ | (.44 | ) | $ | (.28 | ) | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 15.60 | (1.75 | )%5 | $ | 2,989 | .59 | %6 | 2.00 | %6 | ||||||||||||||||||||
7/31/2016 | 15.92 | .35 | .12 | .47 | (.35 | ) | — | (.35 | ) | 16.04 | 2.97 | 3,055 | .59 | 2.17 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .38 | (.18 | ) | .20 | (.38 | ) | — | (.38 | ) | 15.92 | 1.23 | 2,670 | .57 | 2.36 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.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 | ||||||||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.04 | .10 | (.44 | ) | (.34 | ) | (.10 | ) | — | (.10 | ) | 15.60 | (2.09 | )5 | — | 8 | 1.28 | 6 | 1.29 | 6 | ||||||||||||||||||||||||||||
7/31/2016 | 15.92 | .24 | .12 | .36 | (.24 | ) | — | (.24 | ) | 16.04 | 2.25 | — | 8 | 1.29 | 1.50 | |||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .26 | (.18 | ) | .08 | (.26 | ) | — | (.26 | ) | 15.92 | .52 | 1 | 1.28 | 1.66 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.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 | ||||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.04 | .10 | (.44 | ) | (.34 | ) | (.10 | ) | — | (.10 | ) | 15.60 | (2.12 | )5 | 29 | 1.33 | 6 | 1.27 | 6 | |||||||||||||||||||||||||||||
7/31/2016 | 15.92 | .23 | .12 | .35 | (.23 | ) | — | (.23 | ) | 16.04 | 2.20 | 30 | 1.33 | 1.43 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .26 | (.18 | ) | .08 | (.26 | ) | — | (.26 | ) | 15.92 | .47 | 30 | 1.33 | 1.60 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.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 | ||||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.04 | .15 | (.44 | ) | (.29 | ) | (.15 | ) | — | (.15 | ) | 15.60 | (1.79 | )5 | 86 | .67 | 6 | 1.93 | 6 | |||||||||||||||||||||||||||||
7/31/2016 | 15.92 | .33 | .12 | .45 | (.33 | ) | — | (.33 | ) | 16.04 | 2.88 | 90 | .67 | 2.09 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .36 | (.18 | ) | .18 | (.36 | ) | — | (.36 | ) | 15.92 | 1.13 | 84 | .67 | 2.27 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.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 |
70 | American Funds Tax-Exempt Funds |
Limited Term Tax-Exempt Bond Fund of America
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2 | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | ||||||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 16.04 | $ | .17 | $ | (.44 | ) | $ | (.27 | ) | $ | (.17 | ) | $ | — | $ | (.17 | ) | $ | 15.60 | (1.67 | )%5 | $ | 342 | .41 | %6 | 2.19 | %6 | ||||||||||||||||||||
7/31/2016 | 15.92 | .38 | .12 | .50 | (.38 | ) | — | (.38 | ) | 16.04 | 3.15 | 291 | .41 | 2.34 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .40 | (.18 | ) | .22 | (.40 | ) | — | (.40 | ) | 15.92 | 1.39 | 208 | .41 | 2.52 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.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 | ||||||||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4,9 | 15.59 | — | 7 | .01 | .01 | — | 7 | — | — | 7 | 15.60 | .09 | 5 | — | 8 | — | 5,10 | .03 | 5 | |||||||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.04 | .18 | (.44 | ) | (.26 | ) | (.18 | ) | — | (.18 | ) | 15.60 | (1.61 | )5 | 290 | .30 | 6 | 2.30 | 6 | |||||||||||||||||||||||||||||
7/31/2016 | 15.92 | .39 | .12 | .51 | (.39 | ) | — | (.39 | ) | 16.04 | 3.26 | 284 | .30 | 2.45 | ||||||||||||||||||||||||||||||||||
7/31/2015 | 16.10 | .42 | (.18 | ) | .24 | (.42 | ) | — | (.42 | ) | 15.92 | 1.50 | 190 | .31 | 2.62 | |||||||||||||||||||||||||||||||||
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 | ) | — | 7 | (.45 | ) | 15.94 | .16 | 132 | .31 | 2.72 | ||||||||||||||||||||||||||||||||
7/31/20123,11 | 16.32 | .10 | .05 | .15 | (.11 | ) | — | (.11 | ) | 16.36 | .90 | 5 | 43 | .07 | 5 | .64 | 5 |
Six months ended | ||||||||||||||||||||||||
January 31, | Year ended July 31 | |||||||||||||||||||||||
20173,4,5 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 13% | 16 | % | 19 | % | 9 | % | 13 | % | 9 | % |
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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | Amount less than $.01. |
8 | Amount less than $1 million. |
9 | Class F-3 shares were offered beginning January 27, 2017. |
10 | Amount less than .01%. |
11 | Class R-6 shares were offered beginning May 11, 2012. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 71 |
Financial highlights (continued)
The Tax-Exempt Bond Fund of America
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Net asset value, end of period | Total 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: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 13.40 | $ | .20 | $ | (.65 | ) | $ | (.45 | ) | $ | (.20 | ) | $ | 12.75 | (3.37 | )%5 | $ | 9,279 | .53 | %6 | 3.07 | %6 | |||||||||||||||||
7/31/2016 | 12.96 | .41 | .44 | .85 | (.41 | ) | 13.40 | 6.69 | 9,510 | .54 | 3.15 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .42 | .04 | .46 | (.42 | ) | 12.96 | 3.62 | 7,385 | .54 | 3.28 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .45 | .48 | .93 | (.45 | ) | 12.92 | 7.60 | 6,772 | .56 | 3.57 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .40 | (.64 | ) | (.24 | ) | (.40 | ) | 12.44 | (1.93 | )5 | 6,984 | .55 | 6 | 3.35 | 6 | ||||||||||||||||||||||||
8/31/2012 | 12.26 | .47 | .82 | 1.29 | (.47 | ) | 13.08 | 10.71 | 7,445 | .55 | 3.73 | |||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 13.40 | .15 | (.65 | ) | (.50 | ) | (.15 | ) | 12.75 | (3.71 | )5 | 1 | 1.25 | 6 | 2.34 | 6 | ||||||||||||||||||||||||
7/31/2016 | 12.96 | .31 | .44 | .75 | (.31 | ) | 13.40 | 5.90 | 3 | 1.28 | 2.43 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .33 | .04 | .37 | (.33 | ) | 12.96 | 2.85 | 7 | 1.28 | 2.55 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .35 | .48 | .83 | (.35 | ) | 12.92 | 6.81 | 13 | 1.30 | 2.84 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .31 | (.64 | ) | (.33 | ) | (.31 | ) | 12.44 | (2.59 | )5 | 20 | 1.30 | 6 | 2.61 | 6 | ||||||||||||||||||||||||
8/31/2012 | 12.26 | .38 | .82 | 1.20 | (.38 | ) | 13.08 | 9.90 | 30 | 1.29 | 3.01 | |||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 13.40 | .15 | (.65 | ) | (.50 | ) | (.15 | ) | 12.75 | (3.76 | )5 | 491 | 1.32 | 6 | 2.28 | 6 | ||||||||||||||||||||||||
7/31/2016 | 12.96 | .31 | .44 | .75 | (.31 | ) | 13.40 | 5.85 | 517 | 1.33 | 2.35 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .32 | .04 | .36 | (.32 | ) | 12.96 | 2.80 | 349 | 1.33 | 2.50 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .35 | .48 | .83 | (.35 | ) | 12.92 | 6.75 | 325 | 1.35 | 2.79 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .31 | (.64 | ) | (.33 | ) | (.31 | ) | 12.44 | (2.64 | )5 | 375 | 1.34 | 6 | 2.56 | 6 | ||||||||||||||||||||||||
8/31/2012 | 12.26 | .37 | .82 | 1.19 | (.37 | ) | 13.08 | 9.85 | 420 | 1.34 | 2.94 | |||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 13.40 | .19 | (.65 | ) | (.46 | ) | (.19 | ) | 12.75 | (3.43 | )5 | 478 | .66 | 6 | 2.95 | 6 | ||||||||||||||||||||||||
7/31/2016 | 12.96 | .39 | .44 | .83 | (.39 | ) | 13.40 | 6.53 | 518 | .67 | 3.04 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .41 | .04 | .45 | (.41 | ) | 12.96 | 3.49 | 1,474 | .67 | 3.16 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .43 | .48 | .91 | (.43 | ) | 12.92 | 7.46 | 1,389 | .68 | 3.46 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .39 | (.64 | ) | (.25 | ) | (.39 | ) | 12.44 | (2.05 | )5 | 1,659 | .68 | 6 | 3.21 | 6 | ||||||||||||||||||||||||
8/31/2012 | 12.26 | .46 | .82 | 1.28 | (.46 | ) | 13.08 | 10.59 | 1,526 | .66 | 3.62 |
72 | American Funds Tax-Exempt Funds |
The Tax-Exempt Bond Fund of America
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Net asset value, end of period | Total return2 | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | ||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 13.40 | $ | .21 | $ | (.65 | ) | $ | (.44 | ) | $ | (.21 | ) | $ | 12.75 | (3.31 | )%5 | $ | 3,043 | .41 | %6 | 3.20 | %6 | |||||||||||||||||
7/31/2016 | 12.96 | .43 | .44 | .87 | (.43 | ) | 13.40 | 6.84 | 2,879 | .40 | 3.26 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .44 | .04 | .48 | (.44 | ) | 12.96 | 3.76 | 990 | .41 | 3.42 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .46 | .48 | .94 | (.46 | ) | 12.92 | 7.74 | 662 | .42 | 3.70 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .42 | (.64 | ) | (.22 | ) | (.42 | ) | 12.44 | (1.81 | )5 | 327 | .42 | 6 | 3.49 | 6 | ||||||||||||||||||||||||
8/31/2012 | 12.26 | .49 | .82 | 1.31 | (.49 | ) | 13.08 | 10.88 | 239 | .40 | 3.87 | |||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4,8 | 12.75 | — | 9 | — | 9 | — | 9 | — | 9 | 12.75 | .04 | 5 | — | 5,10 | — | 5,11 | .04 | 5 | ||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 13.40 | .22 | (.65 | ) | (.43 | ) | (.22 | ) | 12.75 | (3.25 | )5 | 433 | .29 | 6 | 3.32 | 6 | ||||||||||||||||||||||||
7/31/2016 | 12.96 | .44 | .44 | .88 | (.44 | ) | 13.40 | 6.95 | 391 | .29 | 3.39 | |||||||||||||||||||||||||||||
7/31/2015 | 12.92 | .46 | .04 | .50 | (.46 | ) | 12.96 | 3.86 | 270 | .30 | 3.52 | |||||||||||||||||||||||||||||
7/31/2014 | 12.44 | .48 | .48 | .96 | (.48 | ) | 12.92 | 7.86 | 165 | .31 | 3.81 | |||||||||||||||||||||||||||||
7/31/20133,7 | 13.08 | .43 | (.64 | ) | (.21 | ) | (.43 | ) | 12.44 | (1.71 | )5 | 115 | .31 | 6 | 3.58 | 6 | ||||||||||||||||||||||||
8/31/20123,12 | 12.94 | .14 | .15 | .29 | (.15 | ) | 13.08 | 2.25 | 5 | 42 | .09 | 5 | 1.15 | 5 |
Six months ended | Year ended | For the period | Year ended | |||||||||||||||||||||
January 31 | July 31 | 9/1/2012 to | August 31 | |||||||||||||||||||||
20173,4,5 | 2016 | 2015 | 2014 | 7/31/20133,5,7 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 9 | % | 13 | % | 14 | % | 10 | % | 16 | % | 14 | % |
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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | In 2013, the fund changed its fiscal year-end from August to July. |
8 | Class F-3 shares were offered beginning January 27, 2017. |
9 | Amount less than $.01. |
10 | Amount less than $1 million. |
11 | Amount less than .01%. |
12 | Class R-6 shares were offered beginning May 11, 2012. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 73 |
Financial highlights (continued)
American High-Income Municipal Bond Fund
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Net (losses) | ||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | expenses | net income | ||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of period | to average | to average | |||||||||||||||||||||||||||||||
Period ended | of period | income | unrealized) | operations | income) | of period | return2 | (in millions) | net assets | net assets | ||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 16.21 | $ | .30 | $ | (.91 | ) | $ | (.61 | ) | $ | (.29 | ) | $ | 15.31 | (3.77 | )%5 | $ | 3,381 | .70 | %6 | 3.82 | %6 | |||||||||||||||||
7/31/2016 | 15.40 | .63 | .79 | 1.42 | (.61 | ) | 16.21 | 9.45 | 3,519 | .67 | 4.02 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .64 | .17 | .81 | (.63 | ) | 15.40 | 5.34 | 2,700 | .68 | 4.13 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.21 | .25 | (.91 | ) | (.66 | ) | (.24 | ) | 15.31 | (4.10 | )5 | — | 7 | 1.39 | 6 | 3.10 | 6 | |||||||||||||||||||||||
7/31/2016 | 15.40 | .52 | .79 | 1.31 | (.50 | ) | 16.21 | 8.67 | 1 | 1.38 | 3.36 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .53 | .17 | .70 | (.52 | ) | 15.40 | 4.60 | 4 | 1.39 | 3.43 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.21 | .24 | (.91 | ) | (.67 | ) | (.23 | ) | 15.31 | (4.13 | )5 | 229 | 1.45 | 6 | 3.07 | 6 | ||||||||||||||||||||||||
7/31/2016 | 15.40 | .52 | .79 | 1.31 | (.50 | ) | 16.21 | 8.62 | 247 | 1.43 | 3.26 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .52 | .17 | .69 | (.51 | ) | 15.40 | 4.55 | 182 | 1.44 | 3.37 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.21 | .30 | (.91 | ) | (.61 | ) | (.29 | ) | 15.31 | (3.80 | )5 | 219 | .77 | 6 | 3.74 | 6 | ||||||||||||||||||||||||
7/31/2016 | 15.40 | .62 | .79 | 1.41 | (.60 | ) | 16.21 | 9.37 | 282 | .74 | 3.95 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .62 | .17 | .79 | (.61 | ) | 15.40 | 5.27 | 207 | .75 | 4.06 | |||||||||||||||||||||||||||||
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 |
74 | American Funds Tax-Exempt Funds |
American High-Income Municipal Bond Fund
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Net (losses) | ||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | expenses | net income | ||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of period | to average | to average | |||||||||||||||||||||||||||||||
Period ended | of period | income | unrealized) | operations | income) | of period | return2 | (in millions) | net assets | net assets | ||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 16.21 | $ | .32 | $ | (.91 | ) | $ | (.59 | ) | $ | (.31 | ) | $ | 15.31 | (3.68 | )%5 | $ | 811 | .51 | %6 | 4.01 | %6 | |||||||||||||||||
7/31/2016 | 15.40 | .66 | .79 | 1.45 | (.64 | ) | 16.21 | 9.65 | 775 | .48 | 4.18 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .66 | .17 | .83 | (.65 | ) | 15.40 | 5.53 | 321 | .49 | 4.32 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4,8 | 15.30 | .01 | .01 | .02 | (.01 | ) | 15.31 | .12 | 5 | — | 7 | — | 5 | .05 | 5 | |||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 16.21 | .33 | (.91 | ) | (.58 | ) | (.32 | ) | 15.31 | (3.62 | )5 | 310 | .40 | 6 | 4.13 | 6 | ||||||||||||||||||||||||
7/31/2016 | 15.40 | .68 | .79 | 1.47 | (.66 | ) | 16.21 | 9.76 | 269 | .38 | 4.31 | |||||||||||||||||||||||||||||
7/31/2015 | 15.22 | .68 | .17 | .85 | (.67 | ) | 15.40 | 5.64 | 188 | .39 | 4.42 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
7/31/20123,9 | 14.86 | .14 | .28 | .42 | (.15 | ) | 15.13 | 2.85 | 5 | 13 | .08 | 5 | 1.00 | 5 |
Six months ended | ||||||||||||||||||||||||
January 31, | Year ended July 31 | |||||||||||||||||||||||
20173,4,5 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 17% | 21% | 23% | 24% | 25% | 20% |
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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | Amount less than $1 million. |
8 | Class F-3 shares were offered beginning January 27, 2017. |
9 | Class R-6 shares were offered beginning May 11, 2012. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 75 |
Financial highlights (continued)
The Tax-Exempt Fund of California
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Net (losses) | ||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | expenses | net income | ||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of period | to average | to average | |||||||||||||||||||||||||||||||
Period ended | of period | income | unrealized) | operations | income) | of period | return2 | (in millions) | net assets | net assets | ||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 18.21 | $ | .27 | $ | (.93 | ) | $ | (.66 | ) | $ | (.27 | ) | $ | 17.28 | (3.66 | )%5 | $ | 1,586 | .59 | %6 | 3.04 | %6 | |||||||||||||||||
7/31/2016 | 17.62 | .57 | .58 | 1.15 | (.56 | ) | 18.21 | 6.65 | 1,678 | .60 | 3.17 | |||||||||||||||||||||||||||||
7/31/2015 | 17.52 | .60 | .09 | .69 | (.59 | ) | 17.62 | 3.98 | 1,386 | .62 | 3.38 | |||||||||||||||||||||||||||||
7/31/2014 | 16.72 | .63 | .80 | 1.43 | (.63 | ) | 17.52 | 8.72 | 1,265 | .63 | 3.72 | |||||||||||||||||||||||||||||
7/31/20133,7 | 17.54 | .59 | (.82 | ) | (.23 | ) | (.59 | ) | 16.72 | (1.45 | )5 | 1,250 | .63 | 6 | 3.64 | 6 | ||||||||||||||||||||||||
8/31/2012 | 16.32 | .66 | 1.22 | 1.88 | (.66 | ) | 17.54 | 11.70 | 1,334 | .63 | 3.89 | |||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 18.21 | .21 | (.94 | ) | (.73 | ) | (.20 | ) | 17.28 | (4.00 | )5 | — | 8 | 1.31 | 6 | 2.31 | 6 | |||||||||||||||||||||||
7/31/2016 | 17.62 | .44 | .58 | 1.02 | (.43 | ) | 18.21 | 5.88 | — | 8 | 1.34 | 2.51 | ||||||||||||||||||||||||||||
7/31/2015 | 17.52 | .47 | .09 | .56 | (.46 | ) | 17.62 | 3.22 | 1 | 1.35 | 2.65 | |||||||||||||||||||||||||||||
7/31/2014 | 16.72 | .51 | .79 | 1.30 | (.50 | ) | 17.52 | 7.93 | 2 | 1.38 | 3.00 | |||||||||||||||||||||||||||||
7/31/20133,7 | 17.54 | .47 | (.82 | ) | (.35 | ) | (.47 | ) | 16.72 | (2.12 | )5 | 3 | 1.37 | 6 | 2.90 | 6 | ||||||||||||||||||||||||
8/31/2012 | 16.32 | .53 | 1.22 | 1.75 | (.53 | ) | 17.54 | 10.89 | 5 | 1.37 | 3.17 | |||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 18.21 | .20 | (.93 | ) | (.73 | ) | (.20 | ) | 17.28 | (4.04 | )5 | 89 | 1.38 | 6 | 2.25 | 6 | ||||||||||||||||||||||||
7/31/2016 | 17.62 | .43 | .58 | 1.01 | (.42 | ) | 18.21 | 5.82 | 97 | 1.39 | 2.38 | |||||||||||||||||||||||||||||
7/31/2015 | 17.52 | .46 | .09 | .55 | (.45 | ) | 17.62 | 3.16 | 78 | 1.40 | 2.59 | |||||||||||||||||||||||||||||
7/31/2014 | 16.72 | .50 | .80 | 1.30 | (.50 | ) | 17.52 | 7.87 | 76 | 1.42 | 2.94 | |||||||||||||||||||||||||||||
7/31/20133,7 | 17.54 | .46 | (.82 | ) | (.36 | ) | (.46 | ) | 16.72 | (2.16 | )5 | 87 | 1.42 | 6 | 2.85 | 6 | ||||||||||||||||||||||||
8/31/2012 | 16.32 | .52 | 1.22 | 1.74 | (.52 | ) | 17.54 | 10.83 | 101 | 1.42 | 3.10 | |||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | 18.21 | .26 | (.93 | ) | (.67 | ) | (.26 | ) | 17.28 | (3.72 | )5 | 75 | .72 | 6 | 2.91 | 6 | ||||||||||||||||||||||||
7/31/2016 | 17.62 | .55 | .58 | 1.13 | (.54 | ) | 18.21 | 6.52 | 83 | .73 | 3.04 | |||||||||||||||||||||||||||||
7/31/2015 | 17.52 | .58 | .09 | .67 | (.57 | ) | 17.62 | 3.85 | 63 | .74 | 3.26 | |||||||||||||||||||||||||||||
7/31/2014 | 16.72 | .61 | .80 | 1.41 | (.61 | ) | 17.52 | 8.59 | 65 | .76 | 3.60 | |||||||||||||||||||||||||||||
7/31/20133,7 | 17.54 | .56 | (.82 | ) | (.26 | ) | (.56 | ) | 16.72 | (1.58 | )5 | 74 | .77 | 6 | 3.50 | 6 | ||||||||||||||||||||||||
8/31/2012 | 16.32 | .64 | 1.22 | 1.86 | (.64 | ) | 17.54 | 11.59 | 82 | .73 | 3.79 |
76 | American Funds Tax-Exempt Funds |
The Tax-Exempt Fund of California
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||
Net (losses) | ||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | expenses | net income | ||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of period | to average | to average | |||||||||||||||||||||||||||||||
Period ended | of period | income | unrealized) | operations | income) | of period | return2 | (in millions) | net assets | net assets | ||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4 | $ | 18.21 | $ | .28 | $ | (.93 | ) | $ | (.65 | ) | $ | (.28 | ) | $ | 17.28 | (3.59 | )%5 | $ | 253 | .47 | %6 | 3.17 | %6 | |||||||||||||||||
7/31/2016 | 17.62 | .60 | .58 | 1.18 | (.59 | ) | 18.21 | 6.79 | 213 | .48 | 3.29 | |||||||||||||||||||||||||||||
7/31/2015 | 17.52 | .62 | .09 | .71 | (.61 | ) | 17.62 | 4.10 | 134 | .49 | 3.51 | |||||||||||||||||||||||||||||
7/31/2014 | 16.72 | .65 | .80 | 1.45 | (.65 | ) | 17.52 | 8.85 | 110 | .51 | 3.84 | |||||||||||||||||||||||||||||
7/31/20133,7 | 17.54 | .60 | (.82 | ) | (.22 | ) | (.60 | ) | 16.72 | (1.35 | )5 | 91 | .51 | 6 | 3.77 | 6 | ||||||||||||||||||||||||
8/31/2012 | 16.32 | .68 | 1.22 | 1.90 | (.68 | ) | 17.54 | 11.87 | 74 | .48 | 4.02 | |||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||
1/31/20173,4,9 | 17.27 | .01 | .01 | .02 | (.01 | ) | 17.28 | .10 | 5 | — | 8 | — | 5,10 | .04 | 5 |
Six months ended | Year ended | For the period | Year ended | |||||||||||||||||||||
January 31 | July 31 | 9/1/2012 to | August 31 | |||||||||||||||||||||
20173,4,5 | 2016 | 2015 | 2014 | 7/31/20133,5,7 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 11% | 11% | 17% | 8% | 12% | 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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | In 2013, the fund changed its fiscal year-end from August to July. |
8 | Amount less than $1 million. |
9 | Class F-3 shares were offered beginning January 27, 2017. |
10 | Amount less than .01%. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 77 |
Financial highlights (continued)
American Funds Tax-Exempt Fund of New York
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||||||
Net (losses) | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | expenses to | expenses to | Ratio of | ||||||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | average net | average net | net income | |||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of year | assets before | assets after | to average | ||||||||||||||||||||||||||||||||||
Period ended | of year | income | unrealized) | operations | income) | of year | return2,3 | (in millions) | reimbursements | reimbursements3 | net assets3 | |||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5 | $ | 11.12 | $ | .14 | $ | (.53 | ) | $ | (.39 | ) | $ | (.14 | ) | $ | 10.59 | (3.55 | )%6,7 | $ | 156 | .69 | %7,8 | .69 | %7,8 | 2.55 | %7,8 | |||||||||||||||||||
7/31/2016 | 10.66 | .28 | .45 | .73 | (.27 | ) | 11.12 | 6.95 | 7 | 161 | .72 | 7 | .69 | 7 | 2.54 | 7 | ||||||||||||||||||||||||||||
7/31/2015 | 10.58 | .32 | .07 | .39 | (.31 | ) | 10.66 | 3.65 | 7 | 124 | .72 | 7 | .67 | 7 | 2.91 | 7 | ||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .31 | .37 | .68 | (.31 | ) | 10.58 | 6.83 | 7 | 102 | .73 | 7 | .63 | 7 | 3.07 | 7 | ||||||||||||||||||||||||||||
7/31/2013 | 10.85 | .31 | (.64 | ) | (.33 | ) | (.31 | ) | 10.21 | (3.16 | )7 | 100 | .66 | 7 | .59 | 7 | 2.88 | 7 | ||||||||||||||||||||||||||
7/31/2012 | 9.98 | .32 | .87 | 1.19 | (.32 | ) | 10.85 | 12.11 | 7 | 106 | .76 | 7 | .63 | 7 | 3.06 | 7 | ||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5 | 11.12 | .14 | (.53 | ) | (.39 | ) | (.14 | ) | 10.59 | (3.48 | )6,7 | — | 9 | .56 | 7,8 | .56 | 7,8 | 2.68 | 7,8 | |||||||||||||||||||||||||
7/31/2016 | 10.66 | .25 | .45 | .70 | (.24 | ) | 11.12 | 6.64 | 7 | — | 9 | 1.06 | 7 | 1.03 | 7 | 2.24 | 7 | |||||||||||||||||||||||||||
7/31/2015 | 10.58 | .23 | .07 | .30 | (.22 | ) | 10.66 | 2.87 | 7 | — | 9 | 1.49 | 7 | 1.43 | 7 | 2.15 | 7 | |||||||||||||||||||||||||||
7/31/2014 | 10.21 | .23 | .37 | .60 | (.23 | ) | 10.58 | 5.98 | 7 | — | 9 | 1.51 | 7 | 1.44 | 7 | 2.29 | 7 | |||||||||||||||||||||||||||
7/31/2013 | 10.85 | .22 | (.64 | ) | (.42 | ) | (.22 | ) | 10.21 | (4.00 | )7 | — | 9 | 1.53 | 7 | 1.46 | 7 | 1.99 | 7 | |||||||||||||||||||||||||
7/31/2012 | 9.98 | .23 | .87 | 1.10 | (.23 | ) | 10.85 | 11.18 | 7 | — | 9 | 1.59 | 7 | 1.45 | 7 | 2.24 | 7 | |||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5 | 11.12 | .09 | (.53 | ) | (.44 | ) | (.09 | ) | 10.59 | (3.94 | )6 | 13 | 1.48 | 8 | 1.48 | 8 | 1.76 | 8 | ||||||||||||||||||||||||||
7/31/2016 | 10.66 | .20 | .45 | .65 | (.19 | ) | 11.12 | 6.11 | 14 | 1.51 | 1.48 | 1.75 | ||||||||||||||||||||||||||||||||
7/31/2015 | 10.58 | .23 | .07 | .30 | (.22 | ) | 10.66 | 2.79 | 10 | 1.56 | 1.50 | 2.07 | ||||||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .22 | .37 | .59 | (.22 | ) | 10.58 | 5.89 | 8 | 1.60 | 1.51 | 2.19 | ||||||||||||||||||||||||||||||||
7/31/2013 | 10.85 | .21 | (.64 | ) | (.43 | ) | (.21 | ) | 10.21 | (4.04 | ) | 8 | 1.58 | 1.50 | 1.96 | |||||||||||||||||||||||||||||
7/31/2012 | 9.98 | .23 | .87 | 1.10 | (.23 | ) | 10.85 | 11.12 | 7 | 1.62 | 1.50 | 2.17 | ||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5 | 11.12 | .14 | (.53 | ) | (.39 | ) | (.14 | ) | 10.59 | (3.55 | )6,7 | 2 | .67 | 7,8 | .67 | 7,8 | 2.57 | 7,8 | ||||||||||||||||||||||||||
7/31/2016 | 10.66 | .29 | .45 | .74 | (.28 | ) | 11.12 | 7.02 | 7 | 2 | .65 | 7 | .62 | 7 | 2.61 | 7 | ||||||||||||||||||||||||||||
7/31/2015 | 10.58 | .31 | .07 | .38 | (.30 | ) | 10.66 | 3.58 | 7 | 2 | .80 | 7 | .74 | 7 | 2.83 | 7 | ||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .31 | .37 | .68 | (.31 | ) | 10.58 | 6.77 | 7 | 1 | .77 | 7 | .68 | 7 | 3.03 | 7 | ||||||||||||||||||||||||||||
7/31/2013 | 10.85 | .29 | (.64 | ) | (.35 | ) | (.29 | ) | 10.21 | (3.36 | )7 | 1 | .86 | 7 | .79 | 7 | 2.67 | 7 | ||||||||||||||||||||||||||
7/31/2012 | 9.98 | .31 | .87 | 1.18 | (.31 | ) | 10.85 | 11.95 | 7 | 2 | .86 | 7 | .74 | 7 | 2.94 | 7 |
78 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
(Loss) income from investment operations1 | ||||||||||||||||||||||||||||||||||||||||||||
Net (losses) | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||||||||||||
Net asset | gains on | Dividends | Net asset | expenses to | expenses to | Ratio of | ||||||||||||||||||||||||||||||||||||||
value, | Net | securities (both | Total from | (from net | value, | Net assets, | average net | average net | net income | |||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | end | Total | end of year | assets before | assets after | to average | ||||||||||||||||||||||||||||||||||
Period ended | of year | income | unrealized) | operations | income) | of year | return2,3 | (in millions) | reimbursements | reimbursements3 | net assets3 | |||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5 | $ | 11.12 | $ | .14 | $ | (.53 | ) | $ | (.39 | ) | $ | (.14 | ) | $ | 10.59 | (3.49 | )%6 | $ | 27 | .56 | %8 | .56 | %8 | 2.68 | %8 | |||||||||||||||||||
7/31/2016 | 10.66 | .30 | .45 | .75 | (.29 | ) | 11.12 | 7.10 | 31 | .58 | .55 | 2.68 | ||||||||||||||||||||||||||||||||
7/31/2015 | 10.58 | .33 | .07 | .40 | (.32 | ) | 10.66 | 3.77 | 20 | .61 | .56 | 3.02 | ||||||||||||||||||||||||||||||||
7/31/2014 | 10.21 | .32 | .37 | .69 | (.32 | ) | 10.58 | 6.89 | 16 | .66 | .57 | 3.13 | ||||||||||||||||||||||||||||||||
7/31/2013 | 10.85 | .31 | (.64 | ) | (.33 | ) | (.31 | ) | 10.21 | (3.14 | ) | 14 | .64 | .57 | 2.90 | |||||||||||||||||||||||||||||
7/31/2012 | 9.98 | .33 | .87 | 1.20 | (.33 | ) | 10.85 | 12.21 | 13 | .63 | .53 | 3.13 | ||||||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||
1/31/20174,5,10 | 10.58 | — | 11 | .01 | .01 | — | 11 | 10.59 | .13 | 6 | — | 9 | — | 6,12 | — | 6,12 | .03 | 6 |
Six months ended | ||||||||||||||||||||||||
January 31, | Year ended July 31 | |||||||||||||||||||||||
20174,5,6 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 13 | % | 14 | % | 42 | % | 25 | % | 23 | % | 15 | % |
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 some of the periods shown, CRMC reimbursed a portion of miscellaneous fees and expenses. |
4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
5 | Unaudited. |
6 | Not annualized. |
7 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
8 | Annualized. |
9 | Amount less than $1 million. |
10 | Class F-3 shares were offered beginning January 27, 2017. |
11 | Amount less than $.01. |
12 | Amount less than .01%. |
See Notes to Financial Statements
American Funds Tax-Exempt Funds | 79 |
Expense example | 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. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (August 1, 2016, through January 31, 2017).
Actual expenses:
The first line of each share class in the table 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 titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the 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:
Classes F-1, F-2 and F-3 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 table on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
80 | American Funds Tax-Exempt Funds |
American Funds Short-Term Tax-Exempt Bond Fund
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 990.79 | $ | 2.91 | .58 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,022.28 | 2.96 | .58 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 989.64 | 4.06 | .81 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 990.95 | 2.76 | .55 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,000.15 | .04 | .40 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.19 | 2.04 | .40 |
Limited Term Tax-Exempt Bond Fund of America
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 982.46 | $ | 2.95 | .59 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class B – actual return | 1,000.00 | 979.07 | 6.39 | 1.28 | ||||||||||||
Class B – assumed 5% return | 1,000.00 | 1,018.75 | 6.51 | 1.28 | ||||||||||||
Class C – actual return | 1,000.00 | 978.81 | 6.63 | 1.33 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,018.50 | 6.77 | 1.33 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 982.07 | 3.35 | .67 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.83 | 3.41 | .67 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 983.35 | 2.05 | .41 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,023.14 | 2.09 | .41 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,000.91 | .03 | .26 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.89 | 1.33 | .26 | ||||||||||||
Class R-6 – actual return | 1,000.00 | 983.91 | 1.50 | .30 | ||||||||||||
Class R-6 – assumed 5% return | 1,000.00 | 1,023.69 | 1.53 | .30 |
The Tax-Exempt Bond Fund of America
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 966.28 | $ | 2.63 | .53 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class B – actual return | 1,000.00 | 962.87 | 6.18 | 1.25 | ||||||||||||
Class B – assumed 5% return | 1,000.00 | 1,018.90 | 6.36 | 1.25 | ||||||||||||
Class C – actual return | 1,000.00 | 962.42 | 6.53 | 1.32 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,018.55 | 6.72 | 1.32 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 965.67 | 3.27 | .66 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 966.90 | 2.03 | .41 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,023.14 | 2.09 | .41 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,000.38 | .03 | .26 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.89 | 1.33 | .26 | ||||||||||||
Class R-6 – actual return | 1,000.00 | 967.47 | 1.44 | .29 | ||||||||||||
Class R-6 – assumed 5% return | 1,000.00 | 1,023.74 | 1.48 | .29 |
American Funds Tax-Exempt Funds | 81 |
American High-Income Municipal Bond Fund
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 962.31 | $ | 3.46 | .70 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,021.68 | 3.57 | .70 | ||||||||||||
Class B – actual return | 1,000.00 | 958.97 | 6.86 | 1.39 | ||||||||||||
Class B – assumed 5% return | 1,000.00 | 1,018.20 | 7.07 | 1.39 | ||||||||||||
Class C – actual return | 1,000.00 | 958.70 | 7.16 | 1.45 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,017.90 | 7.37 | 1.45 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 961.96 | 3.81 | .77 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.32 | 3.92 | .77 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 963.21 | 2.52 | .51 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,022.63 | 2.60 | .51 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,001.15 | .04 | .33 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.54 | 1.68 | .33 | ||||||||||||
Class R-6 – actual return | 1,000.00 | 963.78 | 1.98 | .40 | ||||||||||||
Class R-6 – assumed 5% return | 1,000.00 | 1,023.19 | 2.04 | .40 |
The Tax-Exempt Fund of California
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 963.43 | $ | 2.92 | .59 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class B – actual return | 1,000.00 | 959.99 | 6.47 | 1.31 | ||||||||||||
Class B – assumed 5% return | 1,000.00 | 1,018.60 | 6.67 | 1.31 | ||||||||||||
Class C – actual return | 1,000.00 | 959.59 | 6.82 | 1.38 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,018.25 | 7.02 | 1.38 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 962.79 | 3.56 | .72 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.58 | 3.67 | .72 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 964.05 | 2.33 | .47 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,000.96 | .04 | .34 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.49 | 1.73 | .34 |
82 | American Funds Tax-Exempt Funds |
American Funds Tax-Exempt Fund of New York
Beginning | Ending | |||||||||||||||
account value | account value | Expenses paid | Annualized | |||||||||||||
8/1/2016 | 1/31/2017 | during period* | expense ratio | |||||||||||||
Class A – actual return | $ | 1,000.00 | $ | 964.45 | $ | 3.42 | .69 | % | ||||||||
Class A – assumed 5% return | 1,000.00 | 1,021.73 | 3.52 | .69 | ||||||||||||
Class B – actual return | 1,000.00 | 965.20 | 2.77 | .56 | ||||||||||||
Class B – assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class C – actual return | 1,000.00 | 960.61 | 7.31 | 1.48 | ||||||||||||
Class C – assumed 5% return | 1,000.00 | 1,017.74 | 7.53 | 1.48 | ||||||||||||
Class F-1 – actual return | 1,000.00 | 964.54 | 3.32 | .67 | ||||||||||||
Class F-1 – assumed 5% return | 1,000.00 | 1,021.83 | 3.41 | .67 | ||||||||||||
Class F-2 – actual return | 1,000.00 | 965.12 | 2.77 | .56 | ||||||||||||
Class F-2 – assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class F-3 – actual return† | 1,000.00 | 1,001.26 | .05 | .43 | ||||||||||||
Class F-3 – assumed 5% return† | 1,000.00 | 1,023.04 | 2.19 | .43 |
* | 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). |
† | The period for the ”annualized expense ratio” and ”actual return” line is based on the number of days since the initial sale of the share class on January 27, 2017. The ”assumed 5% return” line is based on 184 days. |
American Funds Tax-Exempt Funds | 83 |
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
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
Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132
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
84 | American Funds Tax-Exempt Funds |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the funds’ prospectus and summary prospectuses, 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 January 31, 2017, 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, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York’s investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).
Each fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of shareholders of American Funds 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 prospectuses, which give details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after March 31, 2017, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
American Funds from Capital Group
The Capital AdvantageSM
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — 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 27 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital SystemSM | |
The Capital System combines individual accountability with teamwork. Funds using The Capital System are 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. | |
American Funds’ superior long-term track record | |
Equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.2 Fund management fees have been among the lowest in the industry.3 | |
1 | Portfolio manager experience as of December 31, 2016. | |
2 | Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale. | |
3 | On average, our management fees were in the lowest quintile 73% of the time, based on the 20-year period ended December 31, 2016, versus comparable Lipper categories, excluding funds of funds. |
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
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
Bonds, notes & other debt instruments 93.48% New York 90.03% State issuers 47.98% | Principal amount (000) | Value (000) |
Build NYC Resource Corp., Rev. Bonds (YMCA of Greater New York Project), 5.00% 2040 | $500 | $549 |
Build NYC Resource Corp., Rev. Ref. Bonds (New York Law School), 5.00% 2041 | 750 | 792 |
Build NYC Resource Corp., Solid Waste Disposal Rev. Bonds (Pratt Paper (NY), Inc. Project), Series 2014, AMT, 4.50% 20251 | 450 | 470 |
Convention Center Dev. Corp., Rev. Bonds (Hotel Unit Fee Secured), Series 2016-A, 0% 2054 | 1,000 | 182 |
Convention Center Dev. Corp., Rev. Ref. Bonds (Hotel Unit Fee Secured), 5.00% 2030 | 300 | 346 |
Convention Center Dev. Corp., Rev. Ref. Bonds (Hotel Unit Fee Secured), 5.00% 2035 | 840 | 947 |
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2039 | 1,625 | 1,795 |
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2044 | 500 | 551 |
Dormitory Auth., Columbia University Rev. Green Bonds, Series 2016-A-1, 5.00% 2026 | 500 | 619 |
Dormitory Auth., Consolidated Service Contract Rev. Ref. Bonds, Series 2010, 5.00% 2020 | 500 | 558 |
Dormitory Auth., Cornell University, Rev. Bonds, Series 2016-A, 5.00% 2033 | 1,000 | 1,167 |
Dormitory Auth., Culinary Institute of America Rev. Bonds, Series 2013, 5.50% 2033 | 500 | 554 |
Dormitory Auth., Fordham University, Rev. Bonds, Series 2011-A, 5.50% 2036 | 1,000 | 1,141 |
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2031 | 500 | 557 |
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2035 | 1,000 | 1,091 |
Dormitory Auth., Icahn School of Medicine at Mount Sinai, Rev. Bonds, Series 2015-A, 5.00% 2040 | 250 | 270 |
Dormitory Auth., Lease Rev. Bonds (State University Dormitory Facs. Issue), Series 2010-A, 5.00% 2035 | 1,000 | 1,104 |
Dormitory Auth., Miriam Osborn Memorial Home Association Rev. Ref. Bonds, Series 2012, 5.00% 2042 | 970 | 1,000 |
Dormitory Auth., Mount Sinai School of Medicine of New York University, Rev. Ref. Bonds, Series 2010-A, 5.00% 2021 | 1,000 | 1,106 |
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021 (preref. 2020) | 500 | 564 |
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040 (preref. 2020) | 500 | 569 |
Dormitory Auth., New School Rev. Bonds, Series 2015-A, 5.00% 2032 | 1,000 | 1,126 |
Dormitory Auth., New York University Rev. Bonds, Series 2016-A, 5.00% 2034 | 500 | 571 |
Dormitory Auth., North Shore-Long Island Jewish Obligated Group, Rev. Ref. Bonds, Series 2011-A, 5.00% 2032 | 1,500 | 1,644 |
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2022 | 200 | 228 |
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2034 | 1,000 | 1,113 |
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2011-A, 6.00% 2040 (preref. 2020) | 1,000 | 1,154 |
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2016-A, 5.00% 2033 | 400 | 448 |
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2008, 6.25% 2037 | 1,000 | 1,083 |
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2015, 5.00% 20321 | 600 | 639 |
Dormitory Auth., Pratt Institute, Rev. Bonds, Series 2016, 5.00% 2039 | 650 | 729 |
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2011-A, 5.00% 2024 | 500 | 565 |
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2013-E, Assured Guaranty Municipal insured, 5.00% 2022 | 1,000 | 1,167 |
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2016-A, 5.00% 2022 | 1,000 | 1,159 |
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2016-A, 5.00% 2033 | 1,000 | 1,142 |
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041 | 1,420 | 1,600 |
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-E, 5.00% 2017 | 845 | 846 |
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-E, 5.00% 2032 | 750 | 862 |
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2039 | 365 | 417 |
Dormitory Auth., The New School Rev. Bonds, Series 2016-A, 5.00% 2035 | 500 | 561 |
Dormitory Auth., Touro College and University System Obligated Group Rev. Bonds, Series 2014-A, 5.50% 2039 | 1,000 | 1,074 |
Bonds, notes & other debt instruments New York (continued) State issuers (continued) | Principal amount (000) | Value (000) |
Environmental Facs. Corp., Rev. Green Bonds (Revolving Funds), Series 2016-B, 4.00% 2036 | $2,000 | $2,110 |
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2012, AMT, 0.85% 2030 (put 2016)2 | 750 | 750 |
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2012, AMT, 0.85% 2030 (put 2017)2 | 750 | 750 |
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2013-A, 2.75% 2017 | 1,000 | 1,006 |
Housing Dev. Corp., Multi-Family Housing Rev. Bonds (Sustainable Neighborhood), Series 2015-H, 2.95% 2045 (put 2026) | 750 | 747 |
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2007 Series A, 5.00% 2047 | 825 | 834 |
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.25% 2047 | 1,000 | 1,107 |
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.75% 2047 | 1,000 | 1,133 |
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.15% 20341 | 1,250 | 1,334 |
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.375% 20401 | 350 | 377 |
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 3, 7.25% 20441 | 375 | 443 |
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031 | 1,500 | 1,673 |
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049 | 1,500 | 1,637 |
Liberty Dev. Corp., Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035 | 1,000 | 1,197 |
Metropolitan Transportation Auth., Dedicated Tax Fund Bonds, Series 2004-C, AMBAC insured, 5.50% 2017 | 1,000 | 1,037 |
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, 1.66% 20202 | 2,000 | 2,022 |
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-A-2A, 1.04% 2026 (put 2017)2 | 485 | 485 |
Metropolitan Transportation Auth., Hudson Rail Yards Trust Obligations, Series 2016-A, 5.00% 2051 | 500 | 536 |
Metropolitan Transportation Auth., Hudson Rail Yards Trust Obligations, Series 2016-A, 5.00% 2056 | 750 | 805 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2031 | 1,000 | 1,129 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-D-1, 5.00% 2039 | 250 | 281 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 1.24% 2039 (put 2020)2 | 500 | 499 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.00% 2035 | 1,750 | 1,972 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.25% 2030 | 280 | 329 |
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2016-C-1, 4.00% 2041 | 1,000 | 1,019 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043 | 415 | 425 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, AMT, 3.50% 2034 | 580 | 596 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 194, AMT, 3.50% 2035 | 680 | 703 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 195, 4.00% 2046 | 1,970 | 2,109 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044 | 900 | 946 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 200, 3.50% 2045 | 325 | 343 |
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 52, AMT, 3.50% 2030 | 1,060 | 1,100 |
Mortgage Agcy., Mortgage Rev. Bonds, Series 46, 5.00% 2029 | 80 | 83 |
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 45, 4.50% 2029 | 220 | 227 |
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 48, 2.625% 2041 | 530 | 538 |
Port Auth., Consolidated Bonds, Series 147, AMT, FGIC-National insured, 5.00% 2021 | 500 | 504 |
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031 | 1,000 | 1,113 |
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025 | 1,000 | 1,107 |
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034 | 500 | 545 |
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2044 | 500 | 551 |
Port Auth., Special Project Bonds (JFK International Air Terminal LLC Project), Series 8, 5.00% 2020 | 1,000 | 1,098 |
Power Auth. of the State of New York, Rev. Ref. Bonds, Series 2011-A, 5.00% 2038 | 1,500 | 1,683 |
State Energy Research and Dev. Auth., Pollution Control Rev. Ref. Bonds (New York State Electric & Gas Corp. Project), Series 2005-B, AMT, 2.375% 2026 (put 2020) | 300 | 303 |
Thruway Auth., General Rev. Bonds, Series 2014-J, 5.00% 2027 | 1,000 | 1,162 |
Thruway Auth., General Rev. Junior Indebtedness Obligations, Series 2013-A, 5.00% 2019 | 250 | 270 |
Thruway Auth., General Rev. Junior Indebtedness Obligations, Series 2016-A, 5.25% 2056 | 250 | 281 |
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2020 | 1,000 | 1,104 |
Bonds, notes & other debt instruments New York (continued) State issuers (continued) | Principal amount (000) | Value (000) |
Tobacco Settlement Fncg. Corp., Rev. Ref. Bonds (State Contingency Contract Secured), Series 2011-B, 5.00% 2018 | $1,000 | $1,052 |
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2026 | 500 | 522 |
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2031 | 2,250 | 2,335 |
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (Terminal One Group Association, L.P. Project), AMT, 5.00% 2022 | 1,000 | 1,125 |
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (Terminal One Group Association, L.P. Project), AMT, 5.00% 2023 | 500 | 568 |
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.00% 2034 | 500 | 542 |
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.00% 2041 | 500 | 529 |
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.25% 2050 | 1,500 | 1,587 |
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2010-A-1, 5.00% 2019 | 1,000 | 1,100 |
TSASC, Inc., Tobacco Settlement Bonds, Series 2017-A, 5.00% 2022 | 1,000 | 1,131 |
TSASC, Inc., Tobacco Settlement Bonds, Series 2017-A, 5.00% 2025 | 750 | 865 |
Urban Dev. Corp., Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2027 | 1,500 | 1,769 |
Urban Dev. Corp., Service Contract Rev. Ref. Bonds, Series 2010-A-2, 5.00% 2020 | 1,000 | 1,102 |
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2032 | 1,000 | 1,161 |
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2035 | 300 | 344 |
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1, 5.25% 2038 | 1,000 | 1,080 |
Utility Debt Securitization Auth., Restructuring Bonds, Series 2016-B, 5.00% 2030 | 1,000 | 1,191 |
Utility Debt Securitization Auth., Restructuring Bonds, Series 2016-B, 5.00% 2035 | 1,000 | 1,165 |
95,231 | ||
City & county issuers 42.05% | ||
City of Albany, Capital Resource Corp., Rev. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2011, 6.25% 2038 (preref. 2020) | 1,000 | 1,177 |
City of Albany, Capital Resource Corp., Taxable Rev. Bonds (Empire Commons Student Housing, Inc. Ref. Project), Series 2016-B, 5.00% 2031 | 350 | 401 |
City of Albany, Capital Resource Corp., Taxable Rev. Bonds (Empire Commons Student Housing, Inc. Ref. Project), Series 2016-B, 5.00% 2032 | 400 | 456 |
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 (preref. 2017) | 250 | 259 |
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, 5.00% 2030 | 500 | 561 |
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, 5.00% 2042 | 1,000 | 1,086 |
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, Assured Guaranty Municipal insured, 4.00% 2034 | 240 | 243 |
Buffalo and Erie County, Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Project), Series 2015, 5.00% 2040 | 1,050 | 1,118 |
Buffalo and Erie County, Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Project), Series 2015, 5.25% 2035 | 500 | 548 |
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 | 1,549 |
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 5.50% 2043 | 1,000 | 1,040 |
Bonds, notes & other debt instruments New York (continued) City & county issuers (continued) | Principal amount (000) | Value (000) |
Build NYC Resource Corp., Solid Waste Disposal Rev. Bonds (Pratt Paper (NY), Inc. Project), Series 2014, AMT, 5.00% 20351 | $250 | $263 |
Dutchess County, Local Dev. Corp., Rev. Bonds (Culinary Institute of America Project), Series 2016-A-1, 5.00% 2028 | 550 | 627 |
Dutchess County, Local Dev. Corp., Rev. Bonds (Culinary Institute of America Project), Series 2016-A-1, 5.00% 2032 | 400 | 445 |
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2030 | 500 | 549 |
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2040 | 1,000 | 1,093 |
Dutchess County, Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2014-A, 5.00% 2028 | 430 | 480 |
Erie County, Industrial Dev. Agcy., School Fac. Rev. Bonds (City School Dist. of the City of Buffalo Project), Series 2011-A, 5.25% 2025 | 500 | 572 |
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 | 500 | 564 |
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 | 916 |
Various Purpose G.O. Bonds, Series 2014-A, 5.00% 2028 | 1,250 | 1,427 |
Various Purpose G.O. Bonds, Series 2016-A, 5.00% 2027 | 850 | 1,004 |
Various Purpose G.O. Bonds, Series 2016-B, 5.00% 2025 | 1,000 | 1,189 |
Glen Cove Local Econ. Assistance Corp. (Garvies Point Public Improvement Project), Convertible Capital Appreciation Rev. Bonds, Series 2016-C, 0% 20553 | 500 | 334 |
Town of Hempstead, Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2027 | 1,300 | 1,439 |
Town of Hempstead, Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2041 | 800 | 880 |
Town of Hempstead, Local Dev. Corporation Rev. Ref. Bonds (Adelphi University Project), Series 2014, 5.00% 2027 | 400 | 460 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038 | 500 | 534 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-A, 5.00% 2044 | 740 | 812 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-C, 1.19% 2033 (put 2018)2 | 1,000 | 1,000 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2035 | 1,215 | 1,354 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2038 | 750 | 832 |
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-C, 1.42% 2033 (put 2018)2 | 300 | 301 |
County of Monroe, Industrial Dev. Agcy., School Fac. Rev. Bonds (Rochester Schools Modernization Project), Series 2012-A, 5.00% 2021 | 1,000 | 1,137 |
Monroe County, Industrial Dev. Corp., Rev. Bonds (Highland Hospital of Rochester Project), Series 2015, 5.00% 2033 | 430 | 477 |
Monroe County, Industrial Dev. Corp., Rev. Bonds (Highland Hospital of Rochester Project), Series 2015, 5.00% 2034 | 380 | 419 |
Nassau County, Local Econ. Assistance Corp., Rev. Ref. Bonds (Winthrop-University Hospital Association Project), Series 2012, 5.00% 2037 | 500 | 531 |
Nassau County, Tobacco Settlement Corp., Tobacco Settlement Asset-Backed Current Interest Bonds, Series 2006-A-3, 5.125% 2046 | 2,000 | 1,888 |
Nassau County, G.O. General Improvement Bonds, Ref. Series 2016-A, 5.00% 2030 | 1,795 | 2,077 |
Nassau County, G.O. General Improvement Bonds, Series 2016-B, 5.00% 2023 | 750 | 882 |
Nassau County, G.O. General Improvement Bonds, Series 2016-C, 5.00% 2042 | 700 | 777 |
City of New Rochelle, Corp. for Local Dev. Rev. Bonds (Iona College Project), Series 2015-A, 5.00% 2022 | 270 | 301 |
City of New Rochelle, Corp. for Local Dev. Rev. Bonds (Iona College Project), Series 2015-A, 5.00% 2045 | 750 | 800 |
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2034 | 2,000 | 2,309 |
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2037 | 750 | 857 |
City of New York, G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2041 | 500 | 574 |
City of New York, G.O. Bonds, Series 2008-J-4, 1.21% 20252 | 1,500 | 1,500 |
City of New York, G.O. Bonds, Series 2008-L-1, 5.00% 2023 | 1,000 | 1,045 |
City of New York, G.O. Bonds, Series 2015-A, 5.00% 2026 | 1,000 | 1,192 |
Bonds, notes & other debt instruments New York (continued) City & county issuers (continued) | Principal amount (000) | Value (000) |
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028 | $500 | $583 |
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2033 | 1,000 | 1,139 |
City of New York, G.O. Bonds, Series 2016-C, 5.00% 2031 | 1,500 | 1,743 |
New York City Industrial Dev. Agcy., Airport Facs. Rev. Ref. Bonds (Transportation Infrastructure Properties, LLC Obligated Group), Series 2012-A, AMT, 5.00% 2022 | 15 | 16 |
New York City Industrial Dev. Agcy., Airport Facs. Rev. Ref. Bonds (Transportation Infrastructure Properties, LLC Obligated Group), Series 2012-A, AMT, 5.00% 2028 | 250 | 266 |
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series C, 5.25% 2025 | 1,000 | 1,136 |
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2017 Series 2016-A-1, 5.00% 2035 | 1,000 | 1,148 |
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2027 | 750 | 888 |
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010 Series D, 5.00% 2023 | 1,000 | 1,115 |
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-A-1, 5.00% 2037 | 500 | 567 |
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-C, 5.00% 2026 | 1,000 | 1,202 |
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-1, 5.00% 2041 | 345 | 388 |
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2021 | 540 | 597 |
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2025 | 500 | 544 |
New York City, Housing Dev. Corp. Multi-Family Rev. Bonds (8 Spruce Street), Series 2014-E, 3.50% 2048 | 1,670 | 1,643 |
New York City, Housing Dev. Corp. Multi-Family Rev. Bonds (8 Spruce Street), Series 2014-F, 4.50% 2048 | 500 | 510 |
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2011-EE, 5.375% 2043 | 1,000 | 1,129 |
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2014-EE, 5.00% 2045 | 500 | 562 |
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2015-HH, 5.00% 2039 | 500 | 568 |
Trust for Cultural Resources of the City of New York, Rev. Bonds (Juilliard School), Series 2009-B, 1.35% 2036 (put 2017) | 1,500 | 1,504 |
Niagara Area Dev. Corp. (New York), Solid Waste Disposal Fac. Rev. Ref. Bonds (Covanta Energy Project), Series 2012-A, AMT, 5.25% 20421 | 375 | 378 |
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2027 | 600 | 665 |
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2028 | 500 | 551 |
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2029 | 700 | 769 |
Onondaga Civic Dev. Corp., Rev. Bonds (St. Joseph’s Hospital Health Center Project), Series 2014-A, 5.125% 2031 (preref. 2019) | 250 | 273 |
Onondaga County, Resource Recovery Agcy., Rev. Ref. Bonds, Series 2015-A, AMT, Assured Guaranty Municipal insured, 5.00% 2030 | 1,750 | 1,924 |
County of Rockland G.O. Bonds, Series 2014-A, Assured Guaranty Municipal insured, 5.00% 2024 | 1,000 | 1,151 |
Southold Local Dev. Corporation, Rev. Bonds (Peconic Landing at Southold, Inc. Project), Series 2015, 5.00% 2045 | 1,500 | 1,557 |
Suffolk County, Econ. Dev. Corp., Rev. Ref. Bonds (Catholic Health Services of Long Island Obligated Group Project), 5.00% 2028 | 850 | 912 |
Suffolk County, Econ. Dev. Corp., Rev. Ref. Bonds (Catholic Health Services of Long Island Obligated Group Project), 5.00% 2028 (preref. 2021) | 150 | 172 |
Suffolk County, Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030 | 1,000 | 1,093 |
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2012-B, 5.00% 2032 | 750 | 802 |
City of Syracuse, Industrial Dev. Agcy., Tax-Exempt Rev. Ref. Pilot Bonds (Carousel Center Project), Series 2016-A, AMT, 5.00% 2036 | 650 | 702 |
Tompkins County, New York, Dev. Corp., Continuing Care Retirement Community Rev. Bonds (Kendal at Ithaca Inc.), Series 2014-A, 5.00% 2044 | 1,000 | 1,049 |
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.00% 2034 | 1,380 | 1,380 |
Bonds, notes & other debt instruments New York (continued) City & county issuers (continued) | Principal amount (000) | Value (000) |
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.125% 2042 | $4,845 | $4,846 |
Westchester County, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030 | 130 | 144 |
Westchester County, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030 (preref. 2020) | 870 | 1,014 |
Westchester County, Health Care Corp., Rev. Bonds, Series 2011-A, 5.00% 2021 | 100 | 113 |
Westchester County, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2034 | 1,150 | 1,233 |
Westchester County, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2046 | 1,000 | 1,054 |
Westchester County, Local Dev. Corp., Rev. Ref. Bonds (Pace University), Series 2014-A, 5.50% 2042 | 450 | 479 |
City of Yonkers, G.O. Bonds, Series 2011-A, 5.00% 2019 | 1,000 | 1,089 |
City of Yonkers, G.O. Bonds, Series 2015-B, Assured Guaranty Municipal insured, 5.00% 2024 | 490 | 569 |
83,446 | ||
Guam 1.48% | ||
A.B. Won Pat International Airport Auth., General Rev. Bonds, Series 2013-C, AMT, 6.375% 2043 | 500 | 573 |
Government of Guam, Business Privilege Tax Bonds, Series 2011-A, 5.00% 2031 | 1,200 | 1,245 |
Government of Guam, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2011-A, 6.125% 2031 | 500 | 578 |
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2013, 5.00% 2028 | 250 | 274 |
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2014-A, 5.00% 2029 | 250 | 274 |
2,944 | ||
Puerto Rico 1.97% | ||
Highways and Transportation Auth., Highway Rev. Ref. Bonds, Series 2003-AA-1, Assured Guaranty Municipal insured, 4.95% 2026 | 265 | 270 |
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-D, Assured Guaranty Municipal insured, 5.00% 2032 | 660 | 667 |
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036 | 500 | 537 |
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% 2021 | 200 | 207 |
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 | 735 |
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 | 250 | 210 |
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 | 326 |
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 | 250 | 254 |
University of Puerto Rico, University System Rev. Ref. Bonds, Series 2006-P, 5.00% 2017 | 570 | 544 |
University of Puerto Rico, University System Rev. Ref. Bonds, Series 2006-Q, 5.00% 2020 | 350 | 169 |
3,919 | ||
Total bonds, notes & other debt instruments (cost: $181,687,000) | 185,540 | |
Short-term securities 4.65% | ||
Dormitory Auth. Rev., Higher Education Commercial Paper, Series 2002-C, 0.76% 4/3/2017 | 3,000 | 3,000 |
City of New York, G.O. Bonds, Series 2006-H-1, 0.63% 20362 | 1,050 | 1,050 |
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 0.63% 20452 | 550 | 550 |
Short-term securities | Principal amount (000) | Value (000) |
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2006, Series 2005-B, 0.62% 20322 | $1,120 | $1,120 |
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2014, Series 2013-AA-2, 0.63% 20502 | 3,500 | 3,500 |
Total short-term securities (cost: $9,220,000) | 9,220 | |
Total investment securities 98.13% (cost: $190,907,000) | 194,760 | |
Other assets less liabilities 1.87% | 3,713 | |
Net assets 100.00% | $198,473 |
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 was $3,904,000, which represented 1.97% 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. |
3 | Step bond; coupon rate will increase at a later date. |
Key to abbreviations | |
Agcy. = Agency | Fin. = Finance |
AMT = Alternative Minimum Tax | Fncg. = Financing |
Auth. = Authority | G.O. = General Obligation |
Certs. of Part. = Certificates of Participation | LOC = Letter of Credit |
Dept. = Department | Preref. = Prerefunded |
Dev. = Development | Redev. = Redevelopment |
Dist. = District | Ref. = Refunding |
Econ. = Economic | Rev. = Revenue |
Fac. = Facility | TECP = Tax-Exempt Commercial Paper |
Facs. = Facilities |
MFGEFPX-041-0317O-S58605 | American Funds Tax-Exempt Fund of New York — Page 7 of 7 |
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) | Not applicable for filing of semi-annual reports to shareholders. |
(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/ Jerome H. Solomon | |
Jerome H. Solomon, President and Principal Executive Officer | |
Date: March 31, 2017 |
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/ Jerome H. Solomon |
Jerome H. Solomon, President and Principal Executive Officer |
Date: March 31, 2017 |
By /s/ Brian C. Janssen |
Brian C. Janssen, Treasurer and Principal Financial Officer |
Date: March 31, 2017 |