American High Income Trust (AHITX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-05364

American High-Income Trust

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: September 30

Date of reporting period: September 30, 2008

Kimberly S. Verdick

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street, 25th Floor

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

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The right choice for the long term®

American High-Income Trust

Consistency amid change

How your fund has navigated two decades of changes in the high-yield market

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Annual report for the year ended September 30, 2008

American High-Income TrustSM seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.

This fund is one of the 31 American Funds. American Funds is one of the nation’s largest mutual fund families. For more than 75 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, 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. 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. For current information and month-end results, visit americanfunds.com.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 24 and 25 for details.

The fund’s 30-day yield for Class A shares as of October 31, 2008, calculated in accordance with the Securities and Exchange Commission formula, was 13.43% (13.39% without the fee waiver). The fund’s distribution rate for Class A shares as of that date was 10.59%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Results for other share classes can be found on page 31.

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing outside the United States may be subject to additional risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity, which are detailed in the fund’s prospectus.

In this report
	Special feature
4	Consistency amid change
	How your fund’s investment
	approach has helped it navigate
	20 years of changes in the
	high-yield bond market
	Contents
1	Letter to shareholders
3	The value of a long-term
	perspective
11	Summary investment portfolio
16	Financial statements
32	Board of trustees and
	other officers

Fellow shareholders:

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American High-Income Trust ended its fiscal year amid tremendous economic and market volatility. As trouble in the U.S. subprime mortgage market spread to the credit and financial markets, it triggered a global liquidity crisis, which caused stock and bond markets to plummet.

In this environment, your fund reported a loss of 11.9% for the 12 months ended September 30, 2008, assuming the reinvestment of monthly dividends totaling 93 cents a share and a capital gain distribution of 2 cents a share. Shareholders who reinvested dividends received an income return of 7.9% for the year. Those who elected to take dividends in cash received an income return of 7.6% and saw the value of their shares decline 18.9%.

Those results compare with an 11.4% loss for the Lipper High Current Yield Bond Funds Index, a benchmark of similar funds, and a 10.0% loss for the Credit Suisse High Yield Index, which attempts to mirror the high-yield debt markets. The latter index is unmanaged and includes no expenses.

Despite weakness in most parts of the investment-grade market, particularly in corporate bonds, an increasing number of investors bought U.S. Treasuries as a hedge against the volatile equity markets. That helped drive returns for the Citigroup Broad Investment-Grade (BIG) Bond Index, an unmanaged index that measures high-quality bond markets including Treasuries. The index posted a 4.5% total return, not including expenses.

Putting the year in perspective

Fiscal year 2008 has been an extraordinary period in both the stock and bond markets. Although we have experienced other periods of significant weakness in high-yield bonds since the fund’s 1988 inception, the current period’s decline has been particularly widespread across all financial markets and throughout the world.

For the high-yield market, the current crisis began in May 2007. Declining home values set off a rise in mortgage delinquencies and foreclosures that ultimately translated into sizable losses across a range of securitization products and packaged bonds. What started with the bursting of a real estate bubble soon spread to all financial and credit markets, sparking a global liquidity crisis. The rapid and significant decline in liquidity led to sharp drops in securities prices and widespread weakness across all fixed-income markets.

As these losses multiplied, they forced a number of prominent financial institutions to either go bankrupt or be bought out, which has contributed to the decline in liquidity in fixed-income markets. Going forward, there will be considerable unwinding of leverage in the financial markets. That will have a large impact on the high-yield market and, combined with general economic weakness, will likely result in an increase in defaults and corporate difficulties over the next year.

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Results at a glance
For periods ended September 30, 2008, with all distributions reinvested
	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime
										(since 2/19/88)
American High-Income Trust
(Class A shares)		–11.9	%		4.1	%		5.5	%		8.0	%
Lipper High Current Yield
Bond Funds Index*		–11.4			4.0			3.2			6.3
Credit Suisse High Yield Index†		–10.0			4.8			5.3			8.0
Citigroup Broad Investment-Grade
(BIG) Bond Index†		4.5			4.0			5.3			7.2
*The Lipper index does not reflect the effect of sales charges.
† The market indexes are unmanaged and do not reflect the effect of sales charges, commissions or expenses.

Since its inception through September 30, 2008, American High-Income Trust ranked 4th in total return among the 37 high current yield funds in existence throughout the period, according to Lipper. For the 10 years ended September 30, 2008, the fund ranked 20th of 185; for the five years ended September 30, 2008, it ranked 137th of 338; and for the 12 months ended September 30, 2008, it ranked 338th of 466. Lipper rankings do not reflect the effect of sales charges.

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Many price declines have not been driven by fundamental operating weakness at the companies, but are the result of deleveraging, which we believe makes the risk-reward proposition better for investors than it was a year ago.

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In the weeks following the fund’s fiscal year-end, equity and bond markets continued to weaken. From September 30, 2008, through October 10, 2008, the Standard & Poor’s 500 Composite Average, a broad measure of the U.S. equity market, dropped another 22.9%, while the Lipper High Current Yield Bond Funds Index declined 12.8%. The week ending October 10, 2008, marked one of the largest one-week declines and some of the greatest volatility ever experienced in the stock market.

To address the global credit crisis, the U.S. government and, increasingly, other governments around the world are taking steps to foster liquidity and solvency in the financial system. These efforts are still evolving, but they will be an important part of financial stabilization, and we are optimistic that they will ultimately have a positive impact.

Finding value in today’s market

In the current market weakness, nearly all bonds suffered price declines because of forced selling by some market participants. Many price declines have not been driven by fundamental operating weakness at the companies, but are the result of deleveraging, which we believe makes the risk-reward proposition better for investors than it was a year ago.

In fact, valuations for some companies have become so inexpensive that we are finding attractive long-term investment opportunities, even in securities that have not typically been a significant part of the fund’s portfolio, such as mortgage-backed securities and bonds of financial institutions. For us, the key is to identify those companies with strong or improving fundamentals that can survive the coming economic weakness and not default on their debt obligations.

Staying true to our mandate

As American High-Income Trust marks its 20th anniversary this year, it’s important to note that this is not the first credit cycle or market downturn our managers have experienced. Although each cycle has its own distinguishing characteristics, we believe our consistent emphasis on building a diversified and research-driven investment portfolio has allowed the fund to endure the fluctuations of the market for the past two decades. Going forward, we believe fundamental research will be critical in selecting issuers that will be able to support their debt obligations through various business and market cycles.

For the past 10 years ended September 30, 2008, the fund has earned an average annual total return of 5.5%. That compares with a 3.2% return for the Lipper High Current Yield Bond Funds Index and a 5.3% return for the unmanaged Credit Suisse High Yield Index.

By comparison, the Citigroup Broad Investment-Grade (BIG) Bond Index earned an average annual total return of 5.3% for the same period, while the S&P 500 posted a 3.1% return.

To learn more about how American High-Income Trust’s approach has allowed it to weather market and cycle changes in the high-yield market since its inception 20 years ago, please read our feature story, “Consistency Amid Change,” starting on page 4.

As always, we appreciate your continued support and long-term investment perspective.

Sincerely,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.

Vice Chairman

/s/ David C. Barclay

David C. Barclay

President

November 10, 2008

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

The value of a long-term perspective

Here’s how a $10,000 investment in American High-Income Trust grew between February 19, 1988, when the fund began operations, and September 30, 2008, the end of its latest fiscal year. As you can see, that $10,000 grew to $46,800 with all distributions reinvested.

Fund results shown reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment.1 Thus, the net amount invested was $9,625.2

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Years ended September 30	American  High-Income Trust		Lipper High Current Yield Bond Funds Index4		Citigroup Broad Investment-Grade (BIG) Bond Index3		Credit Suisse High Yield Index3		Consumer Price Index (inflation)5
2/19/88	$	9,625	$	10,000	$	10,000	$	10,000	$	10,000
1988		10,182		10,475		10,222		10,447		10,328
1989		11,189		10,935		11,367		11,026		10,776
1990		10,735		9,570		12,237		10,047		11,440
1991		13,873		12,290		14,198		13,757		11,828
1992		16,376		15,132		15,999		16,573		12,181
1993		18,764		17,473		17,627		19,172		12,509
1994		19,066		17,899		17,063		19,831		12,879
1995		21,604		20,178		19,461		22,619		13,207
1996		24,570		22,644		20,423		25,054		13,603
1997		28,176		26,120		22,406		28,994		13,897
1998		27,491		25,688		24,975		28,842		14,103
1999		29,721		27,037		24,908		29,980		14,474
2000		31,295		27,021		26,632		30,555		14,974
2001		30,218		23,569		30,110		29,050		15,371
2002		28,442		22,814		32,632		29,877		15,603
2003		38,197		28,862		34,423		38,257		15,966
2004		42,235		32,215		35,738		43,352		16,371
2005		45,421		34,422		36,783		46,089		17,138
2006		49,174		36,744		38,147		49,667		17,491
2007		53,103		39,586		40,148		53,807		17,973
2008		46,800		35,054		41,947		48,410		18,861

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

2The maximum initial sales charge was 4.75% prior to January 10, 2000.

3The market indexes are unmanaged and include reinvested distributions, but do not reflect the effect of sales charges, commissions or expenses.

4Calculated by Lipper. The index does not reflect the effect of sales charges.

5Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.

6For the period February 19 through September 30, 1988.

Past results are not predictive of results in future periods. The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment (for periods ended September 30, 2008)*
	1 year			5 years			10 years
Class A shares		–15.17	%		3.36	%		5.06	%
*Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 0.70%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 24 and 25 for details.

Consistency amid change

How your fund’s investment approach has helped it navigate 20 years of changes in the high-yield bond market

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The evolution of a market

A 20-year review of the major events and milestones in the high-yield bond market

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.

Numbers next to the years denote total returns for 12-month periods ending September 30, except for the first fiscal year, which ran from February 19, 1988, to September 30, 1988. Returns assume reinvestment of all dividends and capital gains distributions.

1988  +5.8%

American High-Income Trust begins operations on February 19 with about $25 million in assets. A little over seven months later, on September 30, the end of the fund’s fiscal year, assets more than double to $68 million. Interest rates are on the rise, bond prices are falling and the savings and loan (S&L) crisis is in full force.

1989  +9.9%

The high-yield bond market experiences major price swings. Real estate prices peak, and inflation fears escalate. President George Bush unveils an S&L rescue plan. Leveraged buyouts (LBOs) reach an unprecedented number and size.

1990  – 4.1%

In February, Drexel Burnham Lambert Group files for bankruptcy. LBO activity declines. Iraq’s invasion of Kuwait causes stock prices to fall and oil prices to rise. Uncertain demand for high-yield bonds causes prices to decline. Concerns arise about domestic financial institutions. An economic recession begins.

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On February 19, 1988, American High-Income Trust opened its doors under less-than-ideal market conditions. Just four months earlier, in October 1987, the stock market had crashed, with the Dow Jones Industrials Average losing 22.6% of its value in one day — the greatest single-day loss that Wall Street had ever experienced up to that point.

When the fund began operations, the stock market was still uncertain, interest rates were rising and bond prices were falling. The situation worsened over the next year. Drexel Burnham Lambert, the investment banking firm that dominated the high-yield bond market at the time, found itself struggling to survive after a scandal and a liquidity squeeze. In 1990, Drexel declared bankruptcy, eroding confidence in high-yield bonds as a financial instrument. Default rates on high-yield debt skyrocketed, and liquidity dried up. More bad economic news followed: Iraq’s invasion of Kuwait caused stock prices to fall sharply, and high-yield bond prices followed suit. Real estate prices, after having peaked the year before, began to plummet. Savings and loan associations across the country continued to fail. Oil prices rose dramatically, and the U.S. economy slumped into a recession.

Twenty years after the fund’s inception, similar headlines are leaving many investors panicked. High oil prices, the war in Iraq, a decline in home values, the subsequent subprime mortgage debacle, the implosion of a number of high-profile banks and investment firms, and a global liquidity crisis have caused the stock and bond markets to plunge.

But the managers of American High-Income Trust have experienced difficult markets before. All five portfolio counselors in the fund, and many of the analysts, have worked together for more than 10 years and have experienced the evolution of the high-yield bond market and the ups and downs of previous market cycles firsthand.

“All the fund’s investment professionals have been managing money for many years and have lived through difficult credit cycles and liquidity crises before,” says David Barclay, who has been with American High-Income Trust since its inception and is currently its president. “Even as markets have evolved over the past 20 years, the key element of our investment approach — intense fundamental research — remains the same.”

How the market has evolved

Despite the similarity to 1988 headlines, today’s high-yield bond market differs greatly from that of 20 years ago. “Overall, the market has matured,” says Susan Tolson, a portfolio counselor of the fund. “It has grown from a small, thinly traded $200 billion club dominated by Drexel, which single-handedly spurred the market’s growth in the 1980s, to a more diverse and deeply traded $960 billion market.”

The market has been primarily impacted by several key trends: greater diversification in the types of companies and industries using high-yield bonds, increased complexity in capital structures, the evolution of the direct loan market, new types of bond buyers and innovations in financial products.

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1991  +29.2%

The U.S. economy remains in a recession, and problems in the banking system linger; however, significantly lower short-term interest rates and higher bond and stock prices increase investor confidence. Kuwait is liberated, and the price of oil returns to approximately the level of early 1990. The era of LBOs ends.

1992  +18.0%

Interest rates continue to decline. Low inflation, stable oil prices and signs of an economic recovery help push high-yield bond prices even higher. New issuance is high, as heavily leveraged companies take advantage of lower interest rates to refinance their debts at reduced costs.

1993  +14.6%

Moderate inflation, low interest rates and continued economic recovery create a favorable climate for high-yield bonds. Companies continue to strengthen their balance sheets by refinancing old debt at lower rates. The fund marks its fifth anniversary. Assets reach $707 million.

1994  +1.6%

The recovering U.S. economy helps bolster corporate profits and improve corporate balance sheets. The Federal Reserve Board raises interest rates to pre-empt inflation. Long-term interest rates soar, and bond prices fall.

1995  +13.3%

When the fiscal year begins, the bond market is in one of the worst periods in its history. The abrupt devaluation of the Mexican peso in December 1994 causes a ripple effect in many fixed-income markets around the globe. Later in the period, sentiment begins to change, interest rates fall and bond prices rally.

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Greater diversification. “The breadth of the market has improved,” says David Daigle, a portfolio counselor of the fund. “Compared to 20 years ago, we have a much broader set of investment ideas to choose from, as more companies and industries seek financing in the high-yield market.”

Once dominated by leveraged buyouts, the high-yield market now includes companies in new industries that are raising money to fund their growth and expansion, as well as more established firms looking to fund restructuring and acquisition goals. As a result, American High-Income Trust’s portfolio today contains bonds issued by companies in the financial, auto, technology and utilities industries — all not traditionally part of the high-yield market.

“Today, there is much more leverage in corporate America overall,” says Barclay. “There is more flexibility and diversification in the ways companies borrow money. As a result, it has become a more diversified universe for investors.”

The high-yield market has also expanded globally and now includes bonds issued by corporations and governments in both developed countries and emerging markets.

More complex capital structures. Capital structures are also offering new investment opportunities. As more high-yield companies opt to raise capital at different levels of their capital structure, multiple layers of holdings within companies are being created. “Traditionally, senior portions of the capital structure were generally held by banks and were not available to us,” says Daigle. “Now we can buy anywhere in the capital structure. That gives us more range to find the right risk-reward balance.”

Evolution of the direct loan market. Another recent trend: Banks have begun selling their secured loan debt to institutional investors. Instead of banks being the only primary lenders of secured loans, now certain mutual funds and other institutions can invest in these loans. “The loan market has become part of the high-yield market,” says Barclay. “Now loans are sold off by banks, bought by investors and traded, creating another way to invest in high yield.”

More types of bond buyers. In the 1980s, the high-yield markets were just developing and there was a limited buyer base. Back then, buyers of high-yield bonds included mutual funds, insurance companies and pension funds. Today, mutual funds make up a smaller percentage of the high-yield market, as hedge funds and international buyers have become larger players.

Hedge funds, in particular, have had a huge influence on the markets. Hedge funds attempt to offset potential losses or reap larger gains through “short selling,” the practice of selling a security that the seller first borrows (rather than owns) and purchases later to cover the short. The idea is to profit from an expected decline, rather than an increase, in a security’s price. As a result, hedge funds can influence the broader markets and create more volatility, even for funds that do not engage in this practice.

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1996  +13.7%

The bond market experiences a full cycle of declining and rising interest rates. The economy continues to expand. A strong equity market provides companies with a source of capital, which helps propel the high-yield bond market.

1997  +14.7%

This marks another strong year for the bond market. American High-Income Trust passes $2 billion in assets, making it one of the 50 largest taxable fixed-income funds tracked by Lipper.

1998  – 2.4%

The fund marks its 10th anniversary. Assets reach $2.4 billion. In the first half of the period, inflation remains in check, the economy is healthy and corporate earnings are strong. But near the end of the fiscal year, a crisis in Asian markets, combined with concerns about weak corporate profits and a possible economic slowdown, prompts a global flight to quality, which favors Treasury debt and hurts high-yield bond prices.

1999  +8.1%

Early in the period, high-yield bonds enjoy a brief period of rising prices as a result of low inflation, an economic recovery in some overseas markets and lower Treasury bond prices. Later, as high-yield interest rates rise and the supply of high-yield bonds begins to outstrip demand, prices decline.

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Innovations in financial products. Over the past 20 years, bond investing has become increasingly sophisticated as technological advances inspired the development of an array of financial instruments created by investment banks, including vehicles for both hedging and securitization.

Credit default swaps, which constitute the bulk of the credit derivatives market, have had a huge impact on the high-yield market. Basically, these products have features similar to insurance contracts, promising to cover losses if a firm defaults on its corporate bond or loan obligations. They were originally created to allow banks to more easily offset the credit risk on their business loan portfolios. In practice, credit default swaps have allowed investor speculation and caused significant dislocation in the markets.

Securitization vehicles, another financial innovation, are special-purpose entities that buy credit risk and fund it with their own liabilities. One example of a securitization vehicle is collateralized loan obligations (CLOs). This type of asset-backed security holds assets as collateral and sells packages of cash flows to investors.

“Securitization vehicles and hedge funds are driving the market,” says Daigle. “A lot of our current problems, including the subprime debacle, stemmed from securitization vehicles buying investment risk. Although we do not invest in many securitization vehicles, such as structured investment vehicles or collateralized debt obligations, they have an indirect impact on the fund. Many times, price trends are being dictated by whether a CLO is buying or liquidating loans — not by the company’s fundamentals.”

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“Even as markets have evolved over the past 20 years, the key element of our investment approach — intense fundamental research — remains the same.”

David Barclay

President

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2000  +5.3%

Strong economic growth and rising rates dampen bond prices during the first part of the period. The stock market peaks on March 24, 2000. As global competition increases pressure on corporate profits, stock market prices begin to decline. Bond prices begin to recover.

2001  –3.4%

Stock market indexes continue to decline, as companies announce weaker earnings forecasts. Economic malaise deepens through much of the year, prompting an increase in corporate defaults and putting renewed pressure on stock prices. Corporate bond prices decline. The Fed begins a series of aggressive rate cuts in January, as the economy slips into a recession. Just weeks before the end of the fiscal year, the September 11 terrorist attacks disrupt stock and bond market trading for several days, and the fund ends on a weaker note.

2002  –5.9%

The economic recession deepens in the wake of September 11. Weak corporate earnings, diminished access to capital, rapidly eroding credit ratings, concerns about accounting irregularities, and a series of high-profile defaults hurt high-yield bond prices. The fund posts the worst fiscal-year results of its lifetime thus far.

2003  +34.3%

The fund marks its 15th anniversary. Assets reach $8.4 billion. The stock market bottoms on October 9, 2002. An improving economy, stronger balance sheets, lower default rates and greater availability of credit lead to a sharp recovery in corporate bond prices. The fund posts the strongest fiscal-year results of its lifetime.

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“From an investment perspective, we try to make smaller, incremental returns from a larger number of investments rather than rely on a small group of larger investments. At the end of the day, we build the portfolio one company at a time.”

Marc Linden

Portfolio counselor

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A consistent investment approach

Throughout all the changes and shifts in the high-yield market, American High-Income Trust has maintained the research-intensive approach it adopted on its first day. Today, as in February 1988, the fund seeks to invest in bonds that offer a high current yield and an opportunity for price appreciation over time. It meets these objectives through its focus on fundamental research, diversification through its multiple portfolio counselor system and a value-oriented, long-term perspective.

Focus on fundamental research. In American High-Income Trust’s 1994 annual report, its research process was described as follows: “We work together as a global team [to] collectively look at a company’s prospects for growth, its market leadership, its management and its cash flow. It then comes down to an equity-type judgment: Are the company’s debt securities more attractive than, let’s say, a 10-year Treasury security which does not have any credit risk? That means we must use our experience and research to judge whether or not a particular bond seems to provide an attractive compensation relative to the risks we perceive.”

The same process applies today. “The key element of what we do remains the same,” says Marc Linden, a portfolio counselor of the fund. “We are looking at the same issues: the economics of the business, the sustainability of the business and the ability of the company to meet its debt obligations over various business and market cycles. That is the basis of our fundamental research.”

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2004  +10.6%

A growing economy, low interest rates and moderate inflation help credit fundamentals to improve and default rates to decline. Many issuers of high-yield bonds boost profits and improve their balance sheets through debt reduction. As the market rallies, increased investor demand bids the prices of high-yield securities up further. By the end of the period, the high-yield market begins to slow and even forfeit some of its earlier gains, in part due to inflationary concerns and anticipation of interest rate increases. In June, the Fed raises the federal funds rate for the first time in four years, followed by three more increases over the next five months.

2005  +7.5%

Low inflation, strong corporate fundamentals and easy access to capital create a favorable climate for high-yield bonds. After several years of an active deleveraging cycle, more companies are adding debt and increasing leverage to fund capital expenditures, acquisitions and dividend payments.

Putting pressure on high-yield bond prices are rising interest rates and the trend toward larger and more aggressive LBO deals. In May, General Motors and Ford are downgraded to below investment grade, rattling investors and hurting the corporate bond market.

2006  +8.3%

Rising corporate profits, solid economic growth, low default rates and brisk demand help high-yield bonds. Inflation concerns cause the Fed to raise interest rates. Strong corporate profits encourage companies to take on more debt, which helps offset the effect of rising rates. Homebuilders begin to suffer declines in profitability and demand, as the housing market slows.

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Diversification. American High-Income Trust owns 731 securities in industries as varied as telecommunication services, information technology, health care and industrials. Up to 25% of the portfolio may be invested in holdings outside the U.S. As of the fund’s fiscal year-end, no one issuer made up more than 2.73% of the fund.

That kind of diversification is particularly important in volatile environments, such as the current one, because it spreads the investment risk among a larger number of holdings. “From an investment perspective, we try to make smaller, incremental returns from a larger number of investments rather than rely on a small group of larger investments,” says Linden. “At the end of the day, we build the portfolio one company at a time.”

The multiple portfolio counselor system helps the managers achieve this goal. In this system, the fund’s portfolio is divided into portions. Each of the fund’s five portfolio counselors manages one portion; another is managed by the fund’s research analysts, who bring their own investment knowledge to the table. “The system incorporates different viewpoints and styles in the fund,” says Tolson. “That has helped create stability for the fund’s management system, limit volatility and improve long-term returns.”

A long-term, value-oriented perspective. Finally, while many investors have embraced an ever-shorter focus on results, the managers of this fund look farther down the road. “We strive to invest on a multiyear time horizon,” says Daigle. “With hedge funds, monthly and quarterly results drive behavior. We are more concerned with five-year results. So when we see hedge-fund redemptions, it can be an opportunity for us on a long-term basis to add value to the portfolio if we are patient and prudent about when we take on risk.”

Experience can be critical when it comes to surviving a volatile period such as this one and to positioning the fund for the eventual upturn. “Markets tend to be cyclical,” says Linden. “Many of us have been through market shutdowns before, when there was little access to capital. We realize it can be fatal for companies that are not prepared, but it can also create incredible opportunities, as we saw in 2003 and 2004. The key is to find companies that can survive various market cycles. The people who lose are those who are forced to sell at the bottom of the market because they didn’t plan properly for stress.”

This consistent focus on research, diversification and a long-term, value-oriented perspective has allowed American High-Income Trust to endure the ups and downs of the market for more than two decades, making it one of the older high-yield bond funds today. Of the 503 high-yield bond funds in existence today, less than half have been around for a decade or longer and just 37 have been around since 1988, the year this fund was formed. Of those 37 funds that were around 20 years ago, American High-Income Trust ranks fourth in terms of results through September 30, 2008, according to Lipper. (Lipper rankings do not reflect the effect of sales charges.)

[Begin Sidebar]

2007  +8.0%

Early in the fiscal year, ample liquidity, low market volatility, an increase in LBOs and strong investor demand for higher yielding assets help drive returns for high-yield bonds even higher. But in the last three months of the period, results are negatively impacted when trouble in the subprime-mortgage market spreads to credit markets, sparking a global liquidity crisis, and increasingly aggressive LBOs result in a supply of debt that is difficult to sell. Economic growth slows because of a weakening housing market. Despite market pressures, credit fundamentals in the high-yield market remain strong, as companies continue to generate cash flow and enjoy healthy operating environments.

 2008  –11.9%

The global credit crunch deepens, leading to distress among financial institutions. The stock and bond markets plummet. Unprecedented events include the forced sale of Bear Stearns to JPMorgan Chase; the U.S. government’s conservatorship of Fannie Mae and Freddie Mac; Lehman Brothers Holdings’ filing for bankruptcy; and Bank of America’s acquisition of Merrill Lynch. In addition, the Federal Reserve loans $80 billion to American International Group; Wachovia is sold to Wells Fargo; and Goldman Sachs and Morgan Stanley become bank holding companies. American High-Income Trust marks its 20th anniversary. Assets reach $11.5 billion.

[End Sidebar]

How will the market evolve going forward?

The fund’s first two decades have been a time of sweeping changes in the high-yield bond market. But what kinds of changes can investors expect over the next decade? There are several trends that the fund’s investment professionals are monitoring.

Globalization. “Ten years from now, we expect that high-yield markets will be more global,” says Linden. “Having debt as a key source of capital for companies is becoming more widely accepted, and we expect it to be more so in the future, in spite of credit markets today. Over time, more countries will accept borrowing as a valid part of the capital structure.”

Continued evolution of the loan market. “I see several changes that will make the bond and loan markets converge,” says Daigle. Dominated by banks in the past, the loan market has become more institutionalized, which means more loans are owned by nonbanks. “Loans today are structured differently than bonds. Over time, they will become more similar to bond structures and more interchangeable. That will benefit us by making the markets even more liquid than they are today.”

Continued complexity. Despite the consequences of some of the financial innovations of recent years, Linden sees continued enhancement in financial products. “We saw increased leverage in recent years and now see the unwinding of leverage. It goes in fits and starts,” he says. “There’s a middle ground between no leverage and crazy leverage. After we work through the current credit crunch, there will be some caution. But debt capital, ultimately, serves a purpose. It is only when done in a reckless manner or when raised without limit that it becomes a risk.”

More regulation. In part due to their involvement in various aspects of the credit derivatives markets, which include such products as credit default swaps, many top investment firms either went bankrupt or were bought out this year, including Bear Stearns, Lehman Brothers Holdings and Merrill Lynch. Going forward, credit derivatives markets will likely be more regulated. “We are going into a significant period of increased regulation,” says Tolson, who believes there will be changes to credit default swaps, short selling and certain aspects of the hedge fund business. “The industry has needed more oversight than it’s had in the past 10 years, so I believe it will be good for the market in the long term.”

No matter how the market evolves, the managers of American High-Income Trust will continue to focus on fundamental research, building the portfolio one security at a time. “We do not try to pick absolute market bottoms or tops,” says Daigle. “We strive to make investments over multiyear time horizons that have a good risk-reward trade-off. Despite all the changes in the market, that’s been an enduring trait among all the investment professionals in the fund.” n

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.

Summary investment portfolio, September 30, 2008

The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

[begin pie chart]

Portfolio by type of security (percent of net assets)
U.S. corporate bonds & notes	61.9
Corporate bonds & notes of issuers outside the U.S.	11.6
Corporate loans	6.0
Bonds & notes of governments & government agencies outside the U.S.	3.5
Other	1.6
Common stocks & warrants	1.2
Preferred securities	0.7
Convertible securities	0.5
Short-term securities & other assets less liabilities	13.0

[end pie chart]

Bonds, notes & other debt instruments - 84.57%	Principal amount (000)	Value  (000)	Percent of net assets
Corporate bonds, notes & loans  -  79.50%
Consumer discretionary  - 21.60%
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.:
8.00% 2012 (1)	$50,950	$45,855
8.375%-10.875% 2014 (1)	55,200	51,308
Charter Communications Operating, LLC, Term Loans, 4.80%-8.77% 2014 (2)  (3)  (4)	71,427	61,194
CCH II, LLC and CCH II Capital Corp. 10.25% 2010	62,980	56,997
CCH I, LLC and CCH I Capital Corp. 11.00% 2015	78,275	52,053
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013	43,890	38,404
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75%-13.50% 2011-2012	14,375	9,274	2.73
Univision Communications Inc.:
9.75% 2015 (1)  (5)	160,720	75,538
7.85% 2011	44,456	34,898
Term Loans, 5.049%-6.50% 2009-2014 (2)  (3)  (4)	76,689	53,028	1.42
CanWest Media Inc., Series B, 8.00% 2012	91,198	76,606	.66
Michaels Stores, Inc. 10.00% 2014	101,525	64,468	.56
Allison Transmission Holdings, Inc. 11.25% 2015 (1)  (5)	74,975	61,854	.54
Gray Television Inc., Series D, 12.00%/15.00% (undated) (6)  (7) (8)	64,500	56,438	.49
Toys "R" Us, Inc. 7.625% 2011	62,330	52,357	.45
Ford Motor Co.:
Term Loan B, 5.49% 2013 (2)  (3)  (4)	25,400	16,955
6.50%-9.50% 2011-2031 (8)	24,328	10,450
FCE Bank PLC 7.125% 2013 (8)	€11,550	11,049
Ford Capital BV 9.50% 2010 (8)	$4,000	2,740	.36
Other securities		1,658,413	14.39
		2,489,879	21.60
Industrials  - 10.04%
Nielsen Finance LLC and Nielsen Finance Co.:
10.00% 2014	92,625	88,457
0%/12.50% 2016 (7)	113,700	74,474
Nielsen Finance LLC, Term Loan B, 4.803% 2013 (2)  (3)  (4)	9,701	8,606	1.49
DAE Aviation Holdings, Inc. 11.25% 2015 (1) (8)	66,070	59,463	.51
Other securities		926,767	8.04
		1,157,767	10.04
Telecommunication services  - 8.38%
Qwest Capital Funding, Inc.:
7.25% 2011	83,750	78,725
7.625%-7.90% 2010-2021	19,610	18,796
Qwest Communications International Inc. 7.25% 2011	43,725	41,648
Qwest Corp. 8.875% 2012	3,600	3,546
U S WEST Capital Funding, Inc. 6.875% 2028	3,300	2,310	1.26
Nextel Communications, Inc.:
Series F, 5.95% 2014	71,690	48,083
6.875%-7.375% 2013-2015	68,491	45,540
Sprint Capital Corp. 6.375%-8.75% 2009-2032	31,880	25,428
Sprint Nextel Corp. 4.169%-6.00% 2010-2016 (2)	30,370	24,243	1.24
Windstream Corp.:
8.125% 2013	93,400	89,197
8.625% 2016	12,300	11,408
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015	31,370	29,919	1.13
Centennial Communications Corp. 8.541%-10.00% 2013 (2)	63,000	58,298
Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013	37,505	37,318
Centennial Communications Corp., Centennial Cellular Operating Co. LLC and Centennial Puerto Rico Operations Corp. 8.125% 2014 (2)	24,175	24,054	1.04
American Tower Corp. 7.125% 2012	56,985	56,415	.49
MetroPCS Wireless, Inc. 9.25% 2014	58,200	54,708	.47
Cricket Communications, Inc. 9.375% 2014	49,230	46,030	.40
Other securities		270,650	2.35
		966,316	8.38
Health care  - 8.24%
Tenet Healthcare Corp.:
9.875% 2014	149,910	146,912
9.25% 2015	51,220	48,659
6.375%-7.375% 2011-2031	26,455	24,283	1.91
HealthSouth Corp.:
9.133% 2014 (2)	57,805	56,360
10.75% 2016 (8)	86,990	90,035	1.27
VWR Funding, Inc. 10.25% 2015 (2)  (5) (8)	116,360	98,906	.86
HCA Inc., Term Loan B, 6.012% 2013 (2)  (3)  (4)	68,007	60,551	.52
Elan Finance PLC and Elan Finance Corp. 8.875% 2013	65,255	55,140	.48
PTS Acquisition Corp. 9.50% 2015 (5) (8)	71,750	53,812	.47
Other securities		314,997	2.73
		949,655	8.24
Financials  - 8.01%
Ford Motor Credit Co.:
5.538% 2012 (2) (8)	111,310	67,343
4.904%-9.875% 2008-2016 (1)  (2) (8)	80,890	59,157	1.10
Countrywide Financial Corp. 0%-6.25% 2010-2037 (1)  (2)	79,076	72,438
Countrywide Home Loans, Inc. 4.125%-5.625% 2009	28,298	26,253
Bank of America Corp., Series M, 8.125% noncumulative preferred (undated) (2)	9,000	7,283
MBNA Capital A, Series A, 8.278% 2026	7,500	6,740	.98
Realogy Corp. 10.50% 2014	110,055	48,974	.42
Other securities		634,764	5.51
		922,952	8.01
Information technology  - 7.27%
NXP BV and NXP Funding LLC:
7.875% 2014	68,575	46,288
9.50% 2015	156,040	80,751
5.541% 2013 (2)	42,850	28,442
7.713%-8.625% 2013-2015 (2)	€80,125	58,028	1.85
Freescale Semiconductor, Inc.:
9.125% 2014 (5)	$206,112	130,881
10.125% 2016	75,425	48,649
Term Loan B, 4.236% 2013 (2)  (3)  (4)	4,888	4,014
6.694%-8.875% 2014 (2)	35,425	24,560	1.80
First Data Corp., Term Loan B2, 5.948% 2014 (2)  (3)  (4)	66,254	57,476	.50
Hughes Communications, Inc. 9.50% 2014	53,375	52,041	.45
Sanmina-SCI Corp. 8.125% 2016	57,375	49,056	.43
Other securities		258,096	2.24
		838,282	7.27
Utilities  - 5.01%
Edison Mission Energy 7.00%-7.75% 2013-2027	168,775	151,846
Midwest Generation, LLC, Series B, 8.56% 2016 (3)	39,629	40,818
Homer City Funding LLC 8.734% 2026 (3)	9,179	9,363	1.75
Texas Competitive Electric Holdings Co. LLC:
10.25% 2015 (1)	64,400	58,443
Series B, 10.25% 2015 (1)	60,035	54,482
Term Loan B2, 6.303% 2014 (2)  (3)  (4)	15,880	13,418
10.50% 2016 (1)  (5)	12,000	10,230	1.18
Intergen Power 9.00% 2017 (1)	71,775	72,134	.63
Other securities		167,090	1.45
		577,824	5.01
Materials  - 4.81%
Georgia Gulf Corp. 9.50% 2014	77,340	47,951	.42
Other securities		506,341	4.39
		554,292	4.81
Energy  - 3.12%
Enterprise Products Operating LP 7.034% 2068 (2)	96,310	77,771	.68
Other securities		281,772	2.44
		359,543	3.12
Consumer staples  - 3.02%
Other securities		348,586	3.02
Total corporate bonds, notes & loans		9,165,096	79.50
Bonds & notes of governments & government agencies outside the U.S.  - 3.49%
Other securities		401,966	3.49
Other - 1.58%
Other securities		182,771	1.58
Total bonds, notes & other debt instruments (cost: $11,925,450,000)		9,749,833	84.57
Convertible securities  - 0.50%		Value  (000)	Percent of net assets
Other - 0.50%
Other securities		57,693	.50
Total convertible securities (cost: $72,079,000)		57,693	.50
Preferred securities  - 0.70%	Shares	Value (000)	Percent of net assets
Financials  - 0.70%
Bank of America Corp., Series K, 8.00% noncumulative (2)	5,000,000	3,965	.04
Other securities		76,478	.66
Total preferred securities (cost: $188,899,000)		80,443	.70
Common stocks  - 1.25%	Shares	Value (000)	Percent of net assets
Other  - 1.25%
AT&T Inc.	1,000,000	27,920	.24
Ford Motor Co. (9)	1,877,140	9,761	.09
Sprint Nextel Corp., Series 1	777,508	4,743	.04
Other securities		101,157	.88
Total common stocks (cost: $217,126,000)		143,581	1.25
Warrants  - 0.00%		Value  (000)	Percent of net assets
Telecommunication services - 0.00%
Other securities		3	.00
Total warrants (cost: $572,000)		3	.00
Short-term securities  - 11.13%	Principal amount (000)	Value (000)	Percent of net assets
AT&T Inc. 2.15%-2.20% due 10/14-11/25/2008 (1)	$146,700	146,120	1.27
Hewlett-Packard Co. 2.16%-3.00% due 10/2-11/19/2008 (1)	129,200	128,932	1.12
Procter & Gamble International Funding S.C.A. 2.08%-2.18% due 10/14-12/2/2008 (1)	85,800	85,581	.74
Freddie Mac 2.13%-2.40% due 11/18-12/30/2008	85,200	84,919	.74
Illinois Tool Works Inc. 2.12%-2.15% due 10/1-11/21/2008	72,500	72,294	.63
Fannie Mae 2.25%-2.90% due 12/8-12/24/2008	70,100	69,917	.61
Merck & Co. Inc. 2.10%-2.20% due 10/24-10/31/2008	67,400	67,288	.58
Pfizer Inc 2.09%-2.17% due 10/8-11/7/2008 (1)	65,000	64,871	.56
Medtronic Inc. 2.07%-2.08% due 10/22-11/20/2008 (1)	64,900	64,741	.56
NetJets Inc. 2.10% due 10/21/2008 (1)	50,000	49,939	.43
Bank of America Corp. 2.69% due 11/18/2008	25,200	25,088
Ranger Funding Co. LLC 3.50% due 11/6/2008 (1)	18,000	17,935	.37
Other securities		405,383	3.52
Total short-term securities (cost: $1,283,268,000)		1,283,008	11.13
Total investment securities (cost: $13,687,394,000)		11,314,561	98.15
Other assets less liabilities		213,684	1.85
Net assets		$11,528,245	100.00%
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the

fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.

The value of the fund's holdings in affiliated companies is included in "Other securities"

under their respective industry sectors in the preceding summary investment portfolio. Further details on these

holdings and related transactions during the year ended September 30, 2008, appear below.

	Beginning shares or principal amount		Additions		Reductions		Ending shares or principal amount		Dividend or interest income (000)		Value of affiliates at 9/30/08 (000)
ZiLOG, Inc. (9)		1,140,500		-		-		1,140,500	$	-	$	3,661
Clarent Hospital Corp. (8) (9)		576,849		-		-		576,849		-		29
SunCom Wireless Holdings, Inc., Class A (10)		7,554,434		-		7,554,434		-		-		-
Triton PCS, Inc. 8.50% 2013 (10)	$	113,840,000		-	$	113,840,000		-		6,925		-
									$	6,925	$	3,690

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

(1) Purchased in a transaction exempt from registration under 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 $2,588,026,000, which represented 22.45% of the net assets of the fund.

(2) Coupon rate may change periodically.

(3) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

(4) Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in "Other securities," was $686,496,000, which represented 5.95% of the net assets of the fund.

(5) Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

(6) Purchased in a transaction exempt from registration under the Securities Act of 1933. This security (acquired on 6/26/2008-7/15/2008 at a cost of $61,275,000) may be subject to legal or contractual restrictions on resale. The total value of all such securities, including those in "Other securities," was $74,120,000, which represented .64% of the net assets of the fund.

(7) Step bond; coupon rate will increase at a later date.

(8) Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in "Other securities," was $994,753,000, which represented 8.63% of the net assets of the fund.

(9) Security did not produce income during the last 12 months.

(10) Unaffiliated issuer at 9/30/2008.

Key to symbol

€ = Euros

The industry classifications shown in the summary investment portfolio were obtained from sources believed to be reliable and are not covered by the Report of Independent Registered Public Accounting Firm.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities
at September 30, 2008	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $13,667,112)	$	11,310,871
Affiliated issuers (cost: $20,282)		3,690	$	11,314,561
Cash				2,199
Unrealized gain on forward currency contracts				820
Receivables for:
Sales of investments		56,729
Sales of fund's shares		19,797
Dividends and interest		263,343		339,869
				11,657,449
Liabilities:
Unrealized loss on forward currency contracts				160
Payables for:
Purchases of investments		56,825
Repurchases of fund's shares		53,099
Dividends on fund's shares		10,567
Investment advisory services		3,140
Services provided by affiliates		5,175
Trustees' deferred compensation		138
Other		100		129,044
Net assets at September 30, 2008			$	11,528,245
Net assets consist of:
Capital paid in on shares of beneficial interest			$	14,098,671
Undistributed net investment income				42,869
Accumulated net realized loss				(239,879	)
Net unrealized depreciation				(2,373,416	)
Net assets at September 30, 2008			$	11,528,245

(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (1,151,687 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
Class A	$	8,073,976		806,601	$	10.01
Class B		557,145		55,659		10.01
Class C		889,879		88,900		10.01
Class F-1		1,203,859		120,267		10.01
Class F-2		13,572		1,356		10.01
Class 529-A		120,053		11,993		10.01
Class 529-B		18,320		1,830		10.01
Class 529-C		49,357		4,931		10.01
Class 529-E		6,746		674		10.01
Class 529-F-1		5,582		558		10.01
Class R-1		11,892		1,188		10.01
Class R-2		127,613		12,749		10.01
Class R-3		185,491		18,531		10.01
Class R-4		125,166		12,504		10.01
Class R-5		139,594		13,946		10.01
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $10.40 each.
See Notes to Financial Statements

Statement of operations
for the year ended September 30, 2008	(dollars in thousands)
Investment income:
Income:
Interest (net of non-U.S. taxes of $553; also includes $6,925 from affiliates)	$	1,109,881
Dividends		12,792		$	1,122,673
Fees and expenses*:
Investment advisory services		42,247
Distribution services		44,224
Transfer agent services		10,831
Administrative services		5,442
Reports to shareholders		551
Registration statement and prospectus		595
Postage, stationery and supplies		1,144
Trustees' compensation		82
Auditing and legal		140
Custodian		373
State and local taxes		133
Other		88
Total fees and expenses before reimbursements/waivers		105,850
Less reimbursements/waivers of fees and expenses:
Investment advisory services		4,225
Administrative services		262
Total fees and expenses after reimbursements/waivers					101,363
Net investment income					1,021,310
Net realized loss and unrealized depreciation on investments and currency:
Net realized loss on:
Investments (including $84,482 net gain from affiliates)		(209,017	)
Currency transactions		(1,946	)		(210,963	)
Net unrealized (depreciation) appreciation on:
Investments		(2,410,779	)
Currency translations		618			(2,410,161	)
Net realized loss and unrealized depreciation on investments and currency					(2,621,124	)
Net decrease in net assets resulting from operations				$	(1,599,814	)
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets	(dollars in thousands)
	Year ended September 30
	2008			2007
Operations:
Net investment income	$	1,021,310		$	925,790
Net realized (loss) gain on investments and currency transactions		(210,963	)		154,033
Net unrealized depreciation on investments and currency translations		(2,410,161	)		(173,969	)
Net (decrease) increase in net assets resulting from operations		(1,599,814	)		905,854
Dividends and distributions paid or accrued to shareholders:
Dividends from net investment income		(1,018,627	)		(914,620	)
Distributions from net realized gain on investments		(25,932	)		-
Total dividends and distributions paid or accrued to shareholders		(1,044,559	)		(914,620	)
Net capital share transactions		887,582			1,967,445
Total (decrease) increase in net assets		(1,756,791	)		1,958,679
Net assets:
Beginning of year		13,285,036			11,326,357
End of year (including undistributed net investment income: $42,869 and $37,476, respectively)	$	11,528,245		$	13,285,036
See Notes to Financial Statements

Notes to financial statements

1. Organization and significant accounting policies

Organization – American High-Income Trust (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.

The fund offers 15 share classes consisting of five retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are generally offered only through eligible employer-sponsored retirement plans.The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 3.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4 and R-5	None	None	None

On August 1, 2008, the fund made an additional retail share class (Class F-2) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). In addition, Class F shares were renamed Class F-1 and Class 529-F shares were renamed Class 529-F-1. Refer to the fund’s prospectus for more details.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. Forward currency contracts are valued at the mean of representative quoted bid and asked prices.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of trustees. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income – Security transactions are recorded by the fund 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 fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders –Dividends paid to shareholders are declared daily from net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

Forward currency contracts – The fund may enter into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in exchange rates arising from investments denominated in currencies other than U.S. dollars. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their expiration date are included in the respective receivables for sales or payables for purchases of investment securities in the statement of assets and liabilities.

Loan transactions – The fund may enter into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal. Risks may arise due to the delayed settlement date of the loan transaction and the ability of the agent and/or borrower to meet the obligations of the loan.

2. Risk Factors

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

The values of, and the income generated by, most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund's portfolio generally will decline when interest rates rise and increase when interest rates fall. In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. 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 or longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality or shorter maturity debt securities. There may be little trading in the secondary market for particular debt securities, which may make them more difficult to value or sell.

The prices of, and the income generated by, securities held by the fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. Investments in securities issued by entities based outside the United States may be subject to the risks described above to a greater extent and may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices in some countries; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payments of dividends. These risks may be heightened in connection with investments in developing countries.

3. Taxation and distributions                                                                                     

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended September 30, 2008, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2004, by state tax authorities for tax years before 2003 and by tax authorities outside the U.S. for tax years before 2004.

Non-U.S. taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Realized and unrealized gains on securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on realized and unrealized gains to provide for potential non-U.S. taxes payable on these securities. As of September 30, 2008, there was no liability for non-U.S. taxes based on realized or unrealized gains. For the year ended September 30, 2008, non-U.S. taxes paid on realized gains were $124,000.

Distributions – Distributions paid to shareholders are based on 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 differing treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; 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 fund for financial reporting purposes.

During the year ended September 30, 2008, the fund reclassified $2,826,000 from accumulated net realized loss to undistributed net investment income and $116,000 from undistributed net investment income to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

As of September 30, 2008, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Undistributed ordinary income	$	73,349
Post-October capital loss deferrals (realized during the period November 1, 2007, through September 30, 2008)*		(227,578	)
Gross unrealized appreciation on investment securities		88,378
Gross unrealized depreciation on investment securities		(2,485,515	)
Net unrealized depreciation on investment securities		(2,397,137	)
Cost of investment securities		13,711,698
*These deferrals are considered incurred in the subsequent year.

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

	Year ended September 30, 2008						Year ended September 30, 2007
	Ordinary income		Long-term capital gains		Total distributions paid or accrued		Ordinary income		Long-term capital gains		Total distributions paid or accrued
Share class
Class A	$	730,206	$	18,402	$	748,608	$	673,938	$	-	$	673,938
Class B		49,409		1,431		50,840		51,158		-		51,158
Class C		72,541		2,038		74,579		64,794		-		64,794
Class F-1		102,194		2,457		104,651		75,998		-		75,998
Class F-2*		89		-		89		-		-		-
Class 529-A		10,246		252		10,498		8,047		-		8,047
Class 529-B		1,467		41		1,508		1,272		-		1,272
Class 529-C		3,831		106		3,937		3,073		-		3,073
Class 529-E		559		14		573		432		-		432
Class 529-F-1		475		11		486		355		-		355
Class R-1		919		25		944		680		-		680
Class R-2		10,006		274		10,280		8,052		-		8,052
Class R-3		15,162		381		15,543		11,472		-		11,472
Class R-4		10,337		246		10,583		7,040		-		7,040
Class R-5		11,186		254		11,440		8,309		-		8,309
Total	$	1,018,627	$	25,932	$	1,044,559	$	914,620	$	-	$	914,620
*Class F-2 was offered beginning August 1, 2008.

4. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company® ("AFS"), the fund’s transfer agent, and American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees were based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.14% on such assets in excess of $10 billion. The board of trustees approved an amended agreement effective November 1, 2007, decreasing the annual rate on net assets in excess of $15 billion from a rate of 0.14% to a rate of 0.135%. The agreement also provides for monthly fees, accrued daily, based on a declining series of rates beginning with 3.00% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.50% on such income in excess of $50 million. CRMC is currently waiving 10% of investment advisory services fees. During the year ended September 30, 2008, total investment advisory services fees waived by CRMC were $4,225,000. As a result, the fee shown on the accompanying financial statements of $42,247,000, which was equivalent to an annualized rate of 0.331%, was reduced to $38,022,000, or 0.298% of average daily net assets.

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

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2 and R-5. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes except Classes F-2 and R-5 may use up to 0.25%of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of trustees has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of September 30, 2008, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.30%	0.30%
Class 529-A	0.30	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund has a transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the year ended September 30, 2008, the total administrative services fees paid by CRMC were $262,000 for Class R-2. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described on the previous page for the year ended September 30, 2008, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$20,976	$10,059	Not applicable	Not applicable	Not applicable
Class B	6,720	772	Not applicable	Not applicable	Not applicable
Class C	9,930	Included in administrative services	$1,379	$207	Not applicable
Class F-1	3,147		1,530	247	Not applicable
Class F-2*	Not applicable		2	-†	Not applicable
Class 529-A	233		108	21	$127
Class 529-B	202		18	7	20
Class 529-C	528		45	16	53
Class 529-E	36		6	1	7
Class 529-F-1	-		5	1	6
Class R-1	126		9	17	Not applicable
Class R-2	1,026		200	625	Not applicable
Class R-3	979		270	168	Not applicable
Class R-4	321		180	31	Not applicable
Class R-5	Not applicable		125	11	Not applicable
Total	$44,224	$10,831	$3,877	$1,352	$213

*Class F-2 was offered beginning August 1, 2008.

†Amount less than one thousand.

Trustees’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, trustees who are unaffiliated with CRMCmay elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $82,000, shown on the accompanying financial statements, includes $99,000 in current fees (either paid in cash or deferred) and a net decrease of $17,000 in the value of the deferred amounts.

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

5. Capital share transactions

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

Share class	Sales(*)				Reinvestments of dividends and distributions				Repurchases(*)						Net increase (decrease)
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Year ended September 30, 2008
Class A	$	1,832,026		159,405	$	607,542		53,246	$	(2,022,226	)		(176,467	)	$	417,342			36,184
Class B		58,432		5,104		37,258		3,262		(158,870	)		(13,890	)		(63,180	)		(5,524	)
Class C		246,125		21,376		55,146		4,833		(250,750	)		(21,944	)		50,521			4,265
Class F-1		734,169		63,613		80,516		7,080		(507,861	)		(44,805	)		306,824			25,888
Class F-2†		15,292		1,418		62		6		(708	)		(68	)		14,646			1,356
Class 529-A		28,484		2,472		10,354		909		(16,441	)		(1,438	)		22,397			1,943
Class 529-B		2,433		211		1,488		130		(2,201	)		(193	)		1,720			148
Class 529-C		13,564		1,179		3,879		340		(9,536	)		(836	)		7,907			683
Class 529-E		1,899		165		565		50		(1,241	)		(110	)		1,223			105
Class 529-F-1		1,651		143		479		42		(944	)		(81	)		1,186			104
Class R-1		5,262		459		908		80		(4,723	)		(410	)		1,447			129
Class R-2		52,030		4,528		10,105		886		(44,002	)		(3,829	)		18,133			1,585
Class R-3		103,670		8,970		15,333		1,345		(78,446	)		(6,830	)		40,557			3,485
Class R-4		71,390		6,189		10,447		917		(47,098	)		(4,125	)		34,739			2,981
Class R-5		91,071		7,933		10,522		925		(69,473	)		(6,009	)		32,120			2,849
Total net increase
(decrease)	$	3,257,498		283,165	$	844,604		74,051	$	(3,214,520	)		(281,035	)	$	887,582			76,181
Year ended September 30, 2007
Class A	$	2,599,636		206,346	$	536,365		42,801	$	(1,902,067	)		(152,186	)	$	1,233,934			96,961
Class B		100,652		7,985		35,448		2,827		(142,227	)		(11,372	)		(6,127	)		(560	)
Class C		335,555		26,621		45,464		3,628		(204,959	)		(16,409	)		176,060			13,840
Class F-1		567,759		45,127		55,726		4,448		(299,941	)		(23,998	)		323,544			25,577
Class 529-A		38,433		3,050		8,058		643		(14,230	)		(1,139	)		32,261			2,554
Class 529-B		3,620		287		1,275		102		(1,775	)		(142	)		3,120			247
Class 529-C		17,218		1,366		3,076		245		(7,875	)		(630	)		12,419			981
Class 529-E		2,154		172		432		35		(851	)		(68	)		1,735			139
Class 529-F-1		2,248		179		354		28		(1,015	)		(81	)		1,587			126
Class R-1		6,443		513		673		54		(2,333	)		(185	)		4,783			382
Class R-2		64,051		5,089		8,017		640		(39,894	)		(3,180	)		32,174			2,549
Class R-3		97,675		7,775		11,452		914		(56,548	)		(4,518	)		52,579			4,171
Class R-4		72,689		5,787		7,051		563		(34,470	)		(2,750	)		45,270			3,600
Class R-5		79,624		6,325		7,422		593		(32,940	)		(2,638	)		54,106			4,280
Total net increase
(decrease)	$	3,987,757		316,622	$	720,813		57,521	$	(2,741,125	)		(219,296	)	$	1,967,445			154,847
*Includes exchanges between share classes of the fund.
†Class F-2 was offered beginning August 1, 2008.

6. Forward currency contracts

As of September 30, 2008, the fund had open forward currency contracts to sell currencies as follows (amounts in thousands):

	Contract amount				U.S. valuation at September 30, 2008
	Receive		Deliver		Amount		Unrealized appreciation
Sales:
Euros expiring 10/10 to 12/16/2008	$	47,965	€	33,521	$	47,305	$	660

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $4,057,688,000 and $4,079,624,000, respectively, during the year ended September 30, 2008.

Financial highlights (1)

		(Loss) income from investment operations(2)				Dividends and distributions
	Net asset value, beginning of period	Net investment income		Net (losses) gains on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Distributions (from capital gains)	Total dividends and distributions	Net asset value, end of period	Total return (3) (4)	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reimbursements /waivers	Ratio of expenses to average net assets after reimbursements /waivers (4)	Ratio of net income to average net assets (4)
Class A:
Year ended 9/30/2008	$12.35	$.93	$	(2.32)	$(1.39)	$(.93)	$(.02)	$(.95)	$10.01	(11.87)%	$8,074	.70%	.67%	8.14%
Year ended 9/30/2007	12.30	.93		.04	.97	(.92)	-	(.92)	12.35	7.99	9,516	.69	.66	7.35
Year ended 9/30/2006	12.27	.92		.05	.97	(.94)	-	(.94)	12.30	8.26	8,285	.69	.65	7.52
Year ended 9/30/2005	12.26	.89		.01	.90	(.89)	-	(.89)	12.27	7.54	7,448	.68	.65	7.17
Year ended 9/30/2004	11.88	.87		.35	1.22	(.84)	-	(.84)	12.26	10.57	6,920	.67	.67	7.19
Class B:
Year ended 9/30/2008	12.35	.85		(2.32)	(1.47)	(.85)	(.02)	(.87)	10.01	(12.55)	557	1.47	1.44	7.37
Year ended 9/30/2007	12.30	.83		.04	.87	(.82)	-	(.82)	12.35	7.19	756	1.44	1.41	6.62
Year ended 9/30/2006	12.27	.83		.05	.88	(.85)	-	(.85)	12.30	7.44	760	1.46	1.42	6.76
Year ended 9/30/2005	12.26	.80		.01	.81	(.80)	-	(.80)	12.27	6.72	771	1.45	1.43	6.39
Year ended 9/30/2004	11.88	.78		.35	1.13	(.75)	-	(.75)	12.26	9.71	794	1.46	1.46	6.40
Class C:
Year ended 9/30/2008	12.35	.84		(2.32)	(1.48)	(.84)	(.02)	(.86)	10.01	(12.59)	890	1.52	1.48	7.32
Year ended 9/30/2007	12.30	.83		.04	.87	(.82)	-	(.82)	12.35	7.14	1,045	1.48	1.45	6.55
Year ended 9/30/2006	12.27	.82		.05	.87	(.84)	-	(.84)	12.30	7.39	871	1.50	1.46	6.71
Year ended 9/30/2005	12.26	.79		.01	.80	(.79)	-	(.79)	12.27	6.65	804	1.51	1.49	6.32
Year ended 9/30/2004	11.88	.77		.35	1.12	(.74)	-	(.74)	12.26	9.62	812	1.54	1.54	6.31
Class F-1:
Year ended 9/30/2008	12.35	.93		(2.32)	(1.39)	(.93)	(.02)	(.95)	10.01	(11.90)	1,204	.74	.70	8.09
Year ended 9/30/2007	12.30	.92		.04	.96	(.91)	-	(.91)	12.35	7.98	1,166	.70	.67	7.32
Year ended 9/30/2006	12.27	.92		.05	.97	(.94)	-	(.94)	12.30	8.23	846	.71	.68	7.47
Year ended 9/30/2005	12.26	.88		.01	.89	(.88)	-	(.88)	12.27	7.45	637	.76	.74	7.07
Year ended 9/30/2004	11.88	.86		.35	1.21	(.83)	-	(.83)	12.26	10.44	578	.79	.78	7.05
Class F-2:
Period from 8/4/2008 to 9/30/2008	11.01	.14		(1.00)	(.86)	(.14)	-	(.14)	10.01	(7.84)	13	.08	.07	1.34
Class 529-A:
Year ended 9/30/2008	12.35	.93		(2.32)	(1.39)	(.93)	(.02)	(.95)	10.01	(11.91)	120	.74	.71	8.11
Year ended 9/30/2007	12.30	.92		.04	.96	(.91)	-	(.91)	12.35	7.92	124	.76	.72	7.30
Year ended 9/30/2006	12.27	.91		.05	.96	(.93)	-	(.93)	12.30	8.21	92	.74	.70	7.47
Year ended 9/30/2005	12.26	.88		.01	.89	(.88)	-	(.88)	12.27	7.44	66	.77	.75	7.09
Year ended 9/30/2004	11.88	.86		.35	1.21	(.83)	-	(.83)	12.26	10.48	48	.76	.76	7.12
Class 529-B:
Year ended 9/30/2008	12.35	.84		(2.32)	(1.48)	(.84)	(.02)	(.86)	10.01	(12.64)	18	1.58	1.55	7.26
Year ended 9/30/2007	12.30	.82		.04	.86	(.81)	-	(.81)	12.35	7.06	21	1.56	1.53	6.50
Year ended 9/30/2006	12.27	.81		.05	.86	(.83)	-	(.83)	12.30	7.30	18	1.58	1.55	6.63
Year ended 9/30/2005	12.26	.77		.01	.78	(.77)	-	(.77)	12.27	6.52	15	1.64	1.61	6.22
Year ended 9/30/2004	11.88	.75		.35	1.10	(.72)	-	(.72)	12.26	9.47	12	1.67	1.67	6.20
Class 529-C:
Year ended 9/30/2008	12.35	.84		(2.32)	(1.48)	(.84)	(.02)	(.86)	10.01	(12.64)	49	1.57	1.54	7.27
Year ended 9/30/2007	12.30	.82		.04	.86	(.81)	-	(.81)	12.35	7.07	52	1.55	1.52	6.50
Year ended 9/30/2006	12.27	.81		.05	.86	(.83)	-	(.83)	12.30	7.31	40	1.57	1.54	6.64
Year ended 9/30/2005	12.26	.77		.01	.78	(.77)	-	(.77)	12.27	6.53	32	1.63	1.60	6.23
Year ended 9/30/2004	11.88	.75		.35	1.10	(.72)	-	(.72)	12.26	9.49	25	1.66	1.66	6.21
Class 529-E:
Year ended 9/30/2008	12.35	.90		(2.32)	(1.42)	(.90)	(.02)	(.92)	10.01	(12.18)	7	1.06	1.02	7.79
Year ended 9/30/2007	12.30	.88		.04	.92	(.87)	-	(.87)	12.35	7.62	7	1.04	1.01	7.01
Year ended 9/30/2006	12.27	.88		.05	.93	(.90)	-	(.90)	12.30	7.88	5	1.05	1.01	7.17
Year ended 9/30/2005	12.26	.84		.01	.85	(.84)	-	(.84)	12.27	7.09	4	1.10	1.07	6.77
Year ended 9/30/2004	11.88	.82		.35	1.17	(.79)	-	(.79)	12.26	10.06	3	1.13	1.13	6.75
Class 529-F-1:
Year ended 9/30/2008	$12.35	$.95	$	(2.32)	$(1.37)	$(.95)	$(.02)	$(.97)	$10.01	(11.74)%	$6	.56%	.52%	8.29%
Year ended 9/30/2007	12.30	.94		.04	.98	(.93)	-	(.93)	12.35	8.15	6	.54	.51	7.51
Year ended 9/30/2006	12.27	.94		.05	.99	(.96)	-	(.96)	12.30	8.41	4	.55	.52	7.66
Year ended 9/30/2005	12.26	.88		.01	.89	(.88)	-	(.88)	12.27	7.45	3	.75	.72	7.13
Year ended 9/30/2004	11.88	.85		.35	1.20	(.82)	-	(.82)	12.26	10.34	2	.88	.88	6.99
Class R-1:
Year ended 9/30/2008	12.35	.84		(2.32)	(1.48)	(.84)	(.02)	(.86)	10.01	(12.62)	12	1.55	1.52	7.29
Year ended 9/30/2007	12.30	.82		.04	.86	(.81)	-	(.81)	12.35	7.08	13	1.57	1.52	6.50
Year ended 9/30/2006	12.27	.82		.05	.87	(.84)	-	(.84)	12.30	7.35	8	1.59	1.50	6.68
Year ended 9/30/2005	12.26	.78		.01	.79	(.78)	-	(.78)	12.27	6.61	6	1.61	1.52	6.35
Year ended 9/30/2004	11.88	.76		.35	1.11	(.73)	-	(.73)	12.26	9.59	3	1.68	1.56	6.32
Class R-2:
Year ended 9/30/2008	12.35	.84		(2.32)	(1.48)	(.84)	(.02)	(.86)	10.01	(12.58)	128	1.70	1.48	7.34
Year ended 9/30/2007	12.30	.82		.04	.86	(.81)	-	(.81)	12.35	7.13	138	1.69	1.47	6.56
Year ended 9/30/2006	12.27	.82		.05	.87	(.84)	-	(.84)	12.30	7.37	106	1.90	1.48	6.70
Year ended 9/30/2005	12.26	.79		.01	.80	(.79)	-	(.79)	12.27	6.64	74	1.94	1.49	6.36
Year ended 9/30/2004	11.88	.77		.35	1.12	(.74)	-	(.74)	12.26	9.63	44	2.10	1.53	6.36
Class R-3:
Year ended 9/30/2008	12.35	.89		(2.32)	(1.43)	(.89)	(.02)	(.91)	10.01	(12.20)	185	1.07	1.04	7.77
Year ended 9/30/2007	12.30	.88		.04	.92	(.87)	-	(.87)	12.35	7.58	186	1.07	1.04	6.98
Year ended 9/30/2006	12.27	.87		.05	.92	(.89)	-	(.89)	12.30	7.84	134	1.08	1.05	7.13
Year ended 9/30/2005	12.26	.84		.01	.85	(.84)	-	(.84)	12.27	7.06	97	1.13	1.10	6.74
Year ended 9/30/2004	11.88	.82		.35	1.17	(.79)	-	(.79)	12.26	10.05	58	1.15	1.14	6.76
Class R-4:
Year ended 9/30/2008	12.35	.93		(2.32)	(1.39)	(.93)	(.02)	(.95)	10.01	(11.93)	125	.77	.73	8.08
Year ended 9/30/2007	12.30	.92		.04	.96	(.91)	-	(.91)	12.35	7.93	118	.75	.72	7.30
Year ended 9/30/2006	12.27	.91		.05	.96	(.93)	-	(.93)	12.30	8.19	73	.75	.72	7.46
Year ended 9/30/2005	12.26	.88		.01	.89	(.88)	-	(.88)	12.27	7.46	42	.75	.72	7.14
Year ended 9/30/2004	11.88	.86		.35	1.21	(.83)	-	(.83)	12.26	10.45	24	.79	.78	7.11
Class R-5:
Year ended 9/30/2008	12.35	.96		(2.32)	(1.36)	(.96)	(.02)	(.98)	10.01	(11.65)	140	.45	.42	8.40
Year ended 9/30/2007	12.30	.96		.04	1.00	(.95)	-	(.95)	12.35	8.26	137	.44	.41	7.61
Year ended 9/30/2006	12.27	.95		.05	1.00	(.97)	-	(.97)	12.30	8.51	84	.46	.42	7.75
Year ended 9/30/2005	12.26	.92		.01	.93	(.92)	-	(.92)	12.27	7.78	63	.46	.43	7.37
Year ended 9/30/2004	11.88	.90		.35	1.25	(.87)	-	(.87)	12.26	10.80	74	.47	.47	7.39

	Year ended September 30
	2008			2007			2006			2005			2004
Portfolio turnover rate for all classes of shares		35	%		42	%		41	%		39	%		39	%

(1) Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2) Based on average shares outstanding.

(3) Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(4) This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

See Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of American High-Income Trust:

We have audited the accompanying statement of assets and liabilities, including the summary investment portfolio, of American High-Income Trust (the “Fund”), as of September 30, 2008, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2008, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of American High-Income Trust as of September 30, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Costa Mesa, California

November 10, 2008

Expense example

unaudited

As a shareholder of the fund, 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 period (April 1, 2008, through September 30, 2008).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 4/1/2008		Ending account value 9/30/2008		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	931.91	$	3.28		.68	%
Class A -- assumed 5% return		1,000.00		1,021.60		3.44		.68
Class B -- actual return		1,000.00		928.38		6.94		1.44
Class B -- assumed 5% return		1,000.00		1,017.80		7.26		1.44
Class C -- actual return		1,000.00		928.15		7.13		1.48
Class C -- assumed 5% return		1,000.00		1,017.60		7.47		1.48
Class F-1 -- actual return		1,000.00		931.79		3.38		.70
Class F-1 -- assumed 5% return		1,000.00		1,021.50		3.54		.70
Class F-2 -- actual return†		1,000.00		921.56		.73		.49
Class F-2 -- assumed 5% return†		1,000.00		1,022.55		2.48		.49
Class 529-A -- actual return		1,000.00		931.80		3.43		.71
Class 529-A -- assumed 5% return		1,000.00		1,021.45		3.59		.71
Class 529-B -- actual return		1,000.00		927.87		7.42		1.54
Class 529-B -- assumed 5% return		1,000.00		1,017.30		7.77		1.54
Class 529-C -- actual return		1,000.00		927.89		7.42		1.54
Class 529-C -- assumed 5% return		1,000.00		1,017.30		7.77		1.54
Class 529-E -- actual return		1,000.00		930.33		4.92		1.02
Class 529-E -- assumed 5% return		1,000.00		1,019.90		5.15		1.02
Class 529-F-1 -- actual return		1,000.00		932.64		2.51		.52
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.40		2.63		.52
Class R-1 -- actual return		1,000.00		928.10		7.18		1.49
Class R-1 -- assumed 5% return		1,000.00		1,017.55		7.52		1.49
Class R-2 -- actual return		1,000.00		928.27		7.04		1.46
Class R-2 -- assumed 5% return		1,000.00		1,017.70		7.36		1.46
Class R-3 -- actual return		1,000.00		930.25		4.97		1.03
Class R-3 -- assumed 5% return		1,000.00		1,019.85		5.20		1.03
Class R-4 -- actual return		1,000.00		931.71		3.48		.72
Class R-4 -- assumed 5% return		1,000.00		1,021.40		3.64		.72
Class R-5 -- actual return		1,000.00		933.15		2.03		.42
Class R-5 -- assumed 5% return		1,000.00		1,022.90		2.12		.42

*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 366 (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 from August 4, 2008 (the initial sale of the share class), through September 30, 2008, and accordingly, is not representative of a full period. The "assumed 5% return" line is based on 183 days.

Tax information                                            

                                                                                    unaudited

We are required to advise you within 60 days of the fund’s fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended September 30, 2008:

Long-term capital gains	$	25,932,000
Qualified dividend income		15,699,000
Corporate dividends received deduction		7,974,000
U.S. government income that may be exempt from state taxation		4,323,000

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2009, to determine the calendar year amounts to be included on their 2008 tax returns. Shareholders should consult their tax advisers.

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through October 31, 2009. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

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

1. Nature, extent and quality of services

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

2. Investment results

The board and the committee considered the investment results of the fund in light of its primary objective of providing a high level of current income and its secondary objective of capital appreciation. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s short- and long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase as well as the 10% advisory fee waiver in effect since April 2005. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

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

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the impact of CRMC’s current 10% advisory fee waiver, reflecting benefits that may accrue from growth in assets. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

Other share class results

unaudited

Fund results shown 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.

Classes B, C, F and 529
Average annual total returns for periods ended September 30, 2008:
	1 year			5 years			Life of class
Class B shares — first sold 3/15/00
Reflecting applicable contingent deferred sales
charge (CDSC), maximum of 5%, payable only
if shares are sold within six years of purchase		–16.60	%		3.05	%		4.12	%
Not reflecting CDSC		–12.55			3.35			4.12
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		–13.40			3.29			4.43
Not reflecting CDSC		–12.59			3.29			4.43
Class F-1 shares1 — first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm		–11.90			4.09			5.21
Class F-2 shares1 — first sold 8/4/08
Not reflecting annual asset-based fee charged
by sponsoring firm		—			—			–7.84	2
Class 529-A shares3 — first sold 2/19/02
Reflecting 3.75% maximum sales charge		–15.20			3.29			5.42
Not reflecting maximum sales charge		–11.91			4.08			6.03
Class 529-B shares3 — first sold 2/25/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		–16.69			2.90			5.33
Not reflecting CDSC		–12.64			3.19			5.33
Class 529-C shares3 — first sold 2/19/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		–13.45			3.20			5.15
Not reflecting CDSC		–12.64			3.20			5.15
Class 529-E shares1,3 — first sold 3/15/02		–12.18			3.74			5.38
Class 529-F shares1,3 — first sold 9/16/02
Not reflecting annual asset-based fee charged
by sponsoring firm		–11.74			4.18			8.18
1 These shares are sold without any initial or contingent deferred sales charge.
2 Results are cumulative total returns; they are not annualized.
3 Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 24 and 25 for details.

For information regarding the differences among the various share classes, please refer to the fund’s prospectus.

Board of trustees and other officers

“Independent” trustees
	Year first
	elected
	a trustee
Name and age	of the fund1	Principal occupation(s) during past five years
Ambassador	1999	Corporate director and author; former U.S.
Richard G. Capen, Jr., 74		Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc. (communications company); former Chairman and Publisher, The Miami Herald
H. Frederick Christie, 75	1987	Private investor; former President and CEO, The Mission Group (non-utility holding company, subsidiary of Southern California Edison Company)
James G. Ellis, 61	2006	Dean and Professor of Marketing, University of Southern California
Martin Fenton, 73	1989	Chairman of the Board, Senior Resource Group LLC
Chairman of the Board		(development and management of senior living
(Independent and		communities)
Non-Executive)
Leonard R. Fuller, 62	1994	President and CEO, Fuller Consulting (financial management consulting firm)
R. Clark Hooper, 62	2005	Private investor; former President, Dumbarton Group LLC (securities industry consulting); former Executive Vice President — Policy and Oversight, NASD
Richard G. Newman, 74	1991	Chairman of the Board, AECOM Technology Corporation (engineering, consulting and professional technical services)
Frank M. Sanchez, 65	1999	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)
Steadman Upham, Ph.D., 59	2007	President and Professor of Anthropology, The University of Tulsa; former President and Professor of Archaeology, Claremont Graduate University
Independent” trustees
	Number of
	portfolios
	in fund
	complex2
	overseen by
Name and age	trustee	Other directorships3 held by trustee
Ambassador	15	Carnival Corporation
Richard G. Capen, Jr., 74
H. Frederick Christie, 75	21	AECOM Technology Corporation; DineEquity, Inc.; Ducommun Incorporated; SouthWest Water Company
James G. Ellis, 61	12	None
Martin Fenton, 73	18	None
Chairman of the Board
(Independent and
Non-Executive)
Leonard R. Fuller, 62	16	None
R. Clark Hooper, 62	18	JPMorgan Value Opportunities Fund, Inc.; The Swiss Helvetia Fund, Inc.
Richard G. Newman, 74	14	Sempra Energy; SouthWest Water Company
Frank M. Sanchez, 65	13	None
Steadman Upham, Ph.D., 59	14	None
“Interested” trustees4
	Year first
	elected a
	trustee or	Principal occupation(s) during past five years and
Name, age and	officer of	positions held with affiliated entities or the
position with fund	the fund1	principal underwriter of the fund
Abner D. Goldstine, 78	1987	Senior Vice President — Fixed Income, Capital
Vice Chairman of the Board		Research and Management Company; Director, Capital Research and Management Company
Paul G. Haaga, Jr., 59	1987	Vice Chairman of the Board, Capital Research and
Vice Chairman of the Board		Management Company; Senior Vice President — Fixed Income, Capital Research and Management Company
David C. Barclay, 52	1995	Senior Vice President — Fixed Income, Capital
President		Research and Management Company; Director, The Capital Group Companies, Inc.5
“Interested” trustees4
	Number of
	portfolios
	in fund
	complex2
Name, age and	overseen by
position with fund	trustee	Other directorships3 held by trustee
Abner D. Goldstine, 78	13	None
Vice Chairman of the Board
Paul G. Haaga, Jr., 59	14	None
Vice Chairman of the Board
David C. Barclay, 52	1	None
President

The fund’s statement of additional information includes additional information about fund trustees and is available without charge upon request by calling American Funds Service Company at 800/421-0180. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

1Trustees and officers of the fund serve until their resignation, removal or retirement.

2Capital Research and Management Company manages the American Funds, consisting of 31 funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® Inc., which is composed of nine funds and is available through tax-deferred retirement plans and IRAs; and Endowments, which is composed of two portfolios and is available to certain nonprofit organizations.

3This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a director of a public company or a registered investment company.

4“Interested persons” within the meaning of the 1940 Act, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter).

5Company affiliated with Capital Research and Management Company.

Other officers
	Year first
	elected	Principal occupation(s) during past five years
Name, age and	an officer	and positions held with affiliated entities or the
position with fund	of the fund1	principal underwriter of the fund
Susan M. Tolson, 46	1997	Senior Vice President — Fixed Income, Capital
Senior Vice President		Research and Management Company
Jennifer L. Hinman, 50	2001	Senior Vice President — Fixed Income, Capital
Vice President		Research Company;5 Director, Capital Research Company;5 Director, Capital International Research, Inc.5
Kristine M. Nishiyama, 38	2003	Vice President and Senior Counsel — Fund Business
Vice President		Management Group, Capital Research and Management Company; Vice President and Counsel, Capital Bank and Trust Company5
Kimberly S. Verdick, 44	1994	Vice President — Fund Business Management
Secretary		Group, Capital Research and Management Company
Ari M. Vinocor, 34	2007	Vice President — Fund Business Management
Treasurer		Group, Capital Research and Management Company
Courtney R. Taylor, 33	2006	Assistant Vice President — Fund Business
Assistant Secretary		Management Group, Capital Research and Management Company
M. Susan Gupton, 35	2008	Vice President — Fund Business Management
Assistant Treasurer		Group, Capital Research and Management Company

Please see page 32 for footnotes.

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, CA 90071-2228

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.

A complete September 30, 2008, portfolio of American High-Income Trust’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

American High-Income Trust 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. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of American High-Income Trust, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2008, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - American Funds®]

The right choice for the long term®

What makes American Funds different?

For more than 75 years, we have followed a consistent philosophy to benefit our investors. Our 31 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•	A long-term, value-oriented approach
	We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•	An extensive global research effort
	Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•	The multiple portfolio counselor system
	Our unique method of portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•	Experienced investment professionals
	American Funds portfolio counselors have an average of 26 years of investment experience, providing a wealth of knowledge and experience that few organizations have.

•	A commitment to low operating expenses
	The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•	Growth funds
	Emphasis on long-term growth through stocks

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World FundSM

SMALLCAP World Fund®

•	Growth-and-income funds
	Emphasis on long-term growth and dividends through stocks

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•	Equity-income funds
	Emphasis on above-average income and growth through stocks and/or bonds

Capital Income Builder®

The Income Fund of America®

•	Balanced fund
	Emphasis on long-term growth and current income through stocks and bonds

American Balanced Fund®

•	Bond funds
	Emphasis on current income through bonds

>  American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•	Tax-exempt bond funds
	Emphasis on tax-free current income through municipal bonds

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•	Money market funds
	The Cash Management Trust of America®

The Tax-Exempt Money Fund of AmericaSM

The U.S. Treasury Money Fund of AmericaSM

 • American Funds Target Date Retirement Series®

The Capital Group Companies

American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Lit. No. MFGEAR-921-1108P

Litho in USA RCG/CG/8049-S16813

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer.  The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics.  Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.

ITEM 3 – Audit Committee Financial Expert

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

ITEM 4 – Principal Accountant Fees and Services

Registrant:
	a)  Audit Fees:
		2007	$94,000
		2008	$109,000
	b)  Audit-Related Fees:
		2007	$6,000
		2008	$9,000
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Auditing Standards Number 70 issued by the American Institute of Certified Public Accountants.
	c)  Tax Fees:
		2007	$6,000
		2008	$7,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
	d)  All Other Fees:
		2007	None
		2008	None
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a)  Not Applicable
	b)  Audit-Related Fees:
		2007	$956,000
		2008	$1,047,000
		The audit–related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Auditing Standards Number 70 issued by the American Institute of Certified Public Accountants.
	c)  Tax Fees:
		2007	$2,000
		2008	$8,000
		The tax fees consist of consulting services relating to the registrant’s investments.
	d)  All Other Fees:
		2007	None
		2008	None

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

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant and the adviser and affiliates that provide ongoing services to the Registrant were $1,238,000 for fiscal year 2007 and $1,366,000 for fiscal year 2008. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 – Audit Committee of Listed Registrants

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

ITEM 6 – Schedule of Investments

[logo – American Funds®]

American High-Income TrustSM

Investment portfolio

September 30, 2008

Bonds, notes & other debt instruments — 84.57%	Principal amount (000)			Value (000)
CORPORATE BONDS, NOTES & LOANS — 79.50%
CONSUMER DISCRETIONARY — 21.60%
CCH II, LLC and CCH II Capital Corp. 10.25% 2010	$	62,980		$	56,997
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75% 2011		6,000			3,510
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 13.50% 2011		5,525			4,033
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20121		50,950			45,855
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 12.125% 2012		2,850			1,731
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013		43,890			38,404
Charter Communications Operating, LLC, Term Loan B, 4.80% 20142,3,4		44,811			35,855
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20141		28,700			25,471
Charter Communications Operating, LLC, Term Loan B, 8.77% 20142,3,4		26,616			25,339
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20141		26,500			25,837
CCH I, LLC and CCH I Capital Corp. 11.00% 2015		78,275			52,053
Univision Communications, Inc., Second Lien Term Loan B, 6.50% 20092,3,4		11,494			10,977
Univision Communications Inc. 7.85% 2011		44,456			34,898
Univision Communications, Inc., First Lien Term Loan B, 5.049% 20142,3,4		65,195			42,051
Univision Communications Inc. 9.75% 20151,5		160,720			75,538
Allison Transmission Holdings, Inc., Term Loan B, 5.22% 20142,3,4		9,523			7,960
Allison Transmission Holdings, Inc. 11.00% 20151		50,450			44,144
Allison Transmission Holdings, Inc. 11.25% 20151,5		74,975			61,854
Michaels Stores, Inc., Term Loan B, 4.75% 20132,3,4		28,994			21,419
Michaels Stores, Inc. 10.00% 2014		101,525			64,468
Michaels Stores, Inc. 0%/13.00% 20166		6,150			1,876
Michaels Stores, Inc. 11.375% 2016		9,250			4,417
TL Acquisitions, Inc., Term Loan B, 6.20% 20142,3,4		38,796			31,778
Thomson Learning 0%/13.25% 20151,6		16,045			10,830
Thomson Learning 10.50% 20151		56,890			45,228
CanWest Media Inc., Series B, 8.00% 2012		91,198			76,606
CanWest MediaWorks Inc. 9.25% 20151		3,700			2,682
Toys “R” Us, Inc. 7.625% 2011		62,330			52,357
Toys “R” Us-Delaware, Inc., Term Loan B, 7.059% 20122,3,4		24,013			21,689
MGM MIRAGE 6.00% 2009		18,500			17,390
MGM MIRAGE 8.50% 2010		3,100			2,868
Mandalay Resort Group 6.375% 2011		1,500			1,238
MGM MIRAGE 6.75% 2012		1,700			1,339
MGM MIRAGE 6.75% 2013		16,855			13,231
MGM MIRAGE 5.875% 2014		33,425			24,317
MGM MIRAGE 6.625% 2015		7,975			5,583
MGM MIRAGE 7.50% 2016		4,000			2,940
Mohegan Tribal Gaming Authority 6.375% 2009		36,500			34,857
Mohegan Tribal Gaming Authority 8.00% 2012		10,275			8,785
Mohegan Tribal Gaming Authority 6.125% 2013		1,225			1,023
Mohegan Tribal Gaming Authority 7.125% 2014		22,100			15,801
Mohegan Tribal Gaming Authority 6.875% 2015		3,775			2,624
Gray Television Inc., Series D, 12.00%/15.00% (undated)6,7,8		64,500			56,438
American Media Operations, Inc., Series B, 10.25% 2009		56,620			40,059
American Media Operations, Inc., Series B, 10.25% 20091		2,015			1,426
American Media Operations, Inc. 8.875% 2011		17,615			12,242
American Media Operations, Inc. 8.875% 20111		641			445
K. Hovnanian Enterprises, Inc. 6.00% 2010		2,500			2,250
K. Hovnanian Enterprises, Inc. 8.875% 2012		12,815			8,202
K. Hovnanian Enterprises, Inc. 7.75% 2013		14,325			8,165
K. Hovnanian Enterprises, Inc. 6.375% 2014		2,450			1,433
K. Hovnanian Enterprises, Inc. 6.50% 2014		3,775			2,246
K. Hovnanian Enterprises, Inc. 6.25% 2015		6,790			3,904
K. Hovnanian Enterprises, Inc. 6.25% 2016		10,270			5,957
K. Hovnanian Enterprises, Inc. 7.50% 2016		10,735			6,280
K. Hovnanian Enterprises, Inc. 8.625% 2017		19,860			12,214
Boyd Gaming Corp. 7.75% 2012		27,925			24,714
Boyd Gaming Corp. 6.75% 2014		30,300			21,892
Boyd Gaming Corp. 7.125% 2016		5,500			3,836
Quebecor Media Inc. 7.75% 2016		33,400			29,392
Quebecor Media Inc. 7.75% 2016		22,370			19,686
NTL Cable PLC 8.75% 2014		43,400			36,673
NTL Cable PLC 8.75% 2014	€	4,500			4,890
NTL Cable PLC 9.75% 2014	£	3,000			4,123
Dollar General Corp., Term Loan B2, 6.454% 20142,3,4	$	5,000			4,361
Dollar General Corp. 10.625% 2015		19,725			19,528
Dollar General Corp. 11.875% 20172,5		20,700			19,251
General Motors Corp. 7.20% 2011		26,680			15,741
General Motors Corp. 7.125% 2013		16,055			7,425
General Motors Corp. 7.25% 2013	€	3,000			1,751
General Motors Corp. 7.70% 2016	$	3,950			1,590
General Motors Corp. 8.80% 2021		30,520			11,750
General Motors Corp. 9.40% 20218		5,775			2,483
General Motors Corp. 8.25% 2023		3,650			1,451
AMC Entertainment Inc., Series B, 8.625% 2012		24,450			24,328
AMC Entertainment Inc. 8.00% 2014		8,175			7,071
AMC Entertainment Inc., Series B, 11.00% 2016		10,000			9,900
Ford Capital BV 9.50% 20108		4,000			2,740
Ford Motor Co. 9.50% 20118		1,000			620
Ford Motor Co., Term Loan B, 5.49% 20132,3,4		25,400			16,955
FCE Bank PLC 7.125% 20138	€	11,550			11,049
Ford Motor Co. 6.50% 2018	$	18,608			7,722
Ford Motor Co. 8.875% 2022		2,220			1,021
Ford Motor Co. 7.45% 2031		2,500			1,087
Tenneco Automotive Inc., Series B, 10.25% 2013		5,144			5,311
Tenneco Automotive Inc. 8.625% 2014		38,250			30,600
Tenneco Inc. 8.125% 2015		5,000			4,300
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014		41,425			35,522
Hanesbrands Inc., Series B, 6.508% 20142		40,550			33,859
Kabel Deutschland GmbH 10.625% 2014		34,275			33,761
Cinemark USA, Inc., Term Loan B, 4.56% 20132,3,4		5,635			4,955
Cinemark, Inc. 0%/9.75% 20146		29,075			28,094
Radio One, Inc., Series B, 8.875% 2011		23,017			18,931
Radio One, Inc. 6.375% 20138		20,260			13,473
Gaylord Entertainment Co. 8.00% 2013		22,450			19,644
Gaylord Entertainment Co. 6.75% 2014		14,450			12,210
William Lyon Homes, Inc. 7.625% 2012		18,050			7,130
William Lyon Homes, Inc. 10.75% 2013		20,395			8,872
William Lyon Homes, Inc. 7.50% 2014		37,860			14,955
Technical Olympic USA, Inc. 9.00% 20109		22,486			10,006
Technical Olympic USA, Inc. 9.00% 20109		7,325			3,260
Technical Olympic USA, Inc. 9.25% 20111,9		36,325			16,165
Pinnacle Entertainment, Inc. 7.50% 2015		39,450			29,390
CSC Holdings, Inc., Series B, 8.125% 2009		12,975			12,878
Cablevision Systems Corp., Series B, 8.00% 2012		14,865			14,047
iesy Repository GmbH 10.125% 2015	€	4,750			6,114
iesy Repository GmbH 10.375% 20151	$	20,475			19,554
Sally Holdings LLC and Sally Capital Inc. 9.25% 2014		26,525			25,132
Seneca Gaming Corp., Series B, 7.25% 2012		19,825			17,347
Seneca Gaming Corp. 7.25% 2012		8,440			7,385
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012		28,180			24,094
Fox Acquisition LLC 13.375% 20161,8		26,095			23,225
Meritage Corp. 7.00% 2014		8,575			6,646
Meritage Homes Corp. 6.25% 2015		10,575			7,878
Meritage Corp. 7.731% 20171,8		12,500			7,142
Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014		23,950			21,315
Sealy Mattress Co. 8.25% 2014		26,670			21,069
Cooper-Standard Automotive Inc. 7.00% 2012		18,025			14,600
Cooper-Standard Automotive Inc. 8.375% 2014		9,275			5,890
Education Management LLC and Education Management Finance Corp. 8.75% 2014		4,125			3,465
Education Management LLC and Education Management Finance Corp. 10.25% 2016		21,020			16,921
LBI Media, Inc. 8.50% 20171		30,380			20,203
Edcon Pty Ltd. 8.208% 20142	€	22,425			18,928
Dillard’s, Inc. 6.625% 2008	$	5,050			5,063
Dillard Department Stores, Inc. 9.125% 2011		8,230			7,942
Dillard Department Stores, Inc. 7.85% 2012		1,900			1,681
Dillard’s, Inc. 7.13% 2018		4,000			2,560
Dillard’s, Inc. 7.00% 2028		3,000			1,545
Beazer Homes USA, Inc. 8.625% 2011		9,600			7,824
Beazer Homes USA, Inc. 8.125% 2016		16,725			10,704
J.C. Penney Co., Inc. 8.00% 2010		14,995			15,301
J.C. Penney Co., Inc. 9.00% 2012		2,980			3,155
DaimlerChrysler Financial Services Americas LLC, First Lien Term Loan, 6.82% 20122,3,4		25,550			17,455
Local T.V. Finance LLC 9.25% 20151,5		25,560			16,742
Bon-Ton Department Stores, Inc. 10.25% 2014		50,375			15,364
Standard Pacific Corp. 5.125% 2009		3,750			3,600
Standard Pacific Corp. 6.875% 2011		1,905			1,629
Standard Pacific Corp. 7.75% 2013		3,920			3,214
Standard Pacific Corp. 6.25% 2014		5,685			4,321
Standard Pacific Corp. 7.00% 2015		2,715			2,063
Warner Music Group 7.375% 2014		19,610			14,658
Liberty Media Corp. 7.75% 2009		4,750			4,783
Liberty Media Corp. 8.25% 2030		12,675			8,616
Regal Cinemas Corp., Series B, 9.375% 20128		13,300			13,026
Claire’s Stores, Inc., Term Loan B, 5.56% 20142,3,4		9,603			5,831
Claire’s Stores, Inc. 9.25% 2015		14,450			6,069
Neiman Marcus Group, Inc. 9.00% 20155		13,330			11,231
Dex Media, Inc., Series B, 0%/9.00% 20136		9,000			4,185
R.H. Donnelley Corp., Series A-1, 6.875% 2013		2,425			958
Dex Media, Inc., Series B, 8.00% 2013		3,075			1,430
R.H. Donnelley Corp., Series A-3, 8.875% 2016		12,750			4,399
KB Home 5.875% 2015		4,185			3,348
KB Home 6.25% 2015		9,285			7,614
Morris Publishing Group, LLC and Morris Publishing Finance Co., Series B, 7.00% 2013		41,358			10,133
Seminole Tribe of Florida 7.804% 20201,3		10,050			10,053
Delphi Automotive Systems Corp. 6.55% 20069		12,730			1,591
Delphi Automotive Systems Corp. 6.50% 20099		34,600			4,325
Delphi Corp. 6.50% 20139		17,190			2,235
Delphi Automotive Systems Corp. 7.125% 20299		14,300			1,787
Delphi Trust I 8.25% 20339		4,470			34
Vidéotron Ltée 6.875% 2014		6,780			6,441
Vidéotron Ltée 6.375% 2015		3,720			3,292
Young Broadcasting Inc. 10.00% 2011		58,845			8,827
Young Broadcasting Inc. 8.75% 2014		4,040			606
Visteon Corp. 8.25% 2010		3,772			3,150
Visteon Corp. 12.25% 20161		9,737			5,891
Burlington Coat Factory Warehouse Corp. 11.125% 20148		14,025			8,205
Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015		8,375			6,951
WDAC Intermediate Corp. 8.375% 20141		9,870			5,478
WDAC Intermediate Corp. 8.50% 2014	€	1,750			1,299
Idearc Inc. 8.00% 2016	$	24,375			6,764
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc. 8.375% 2013		6,031			5,986
D.R. Horton, Inc. 8.00% 2009		5,770			5,705
Federated Retail Holdings, Inc. 6.375% 2037		6,845			4,971
Viacom Inc. 5.75% 2011		4,500			4,374
TRW Automotive Inc. 7.00% 20141		4,650			3,859
Royal Caribbean Cruises Ltd. 8.00% 2010		3,200			3,168
Goodyear Tire & Rubber Co. 6.678% 20092		3,000			2,955
News America Inc. 6.75% 2038		2,990			2,919
Dollarama Group LP and Dollarama Corp. 8.875% 2012		2,675			2,287
Wyndham Worldwide Corp. 6.00% 2016		2,415			2,064
Carmike Cinemas, Inc., Delayed Draw, Term Loan, 6.47% 20122,3,4		1,750			1,584
KAC Acquisition Corp. 8.00% 20261,5,8		219			219
					2,489,879
INDUSTRIALS — 10.04%
Nielsen Finance LLC, Term Loan B, 4.803% 20132,3,4		9,701			8,606
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014		92,625			88,457
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20166		113,700			74,474
Continental Airlines, Inc. 8.75% 2011		21,200			15,264
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20123		5,000			4,800
Continental Airlines, Inc., Series 2000-2, Class C, 8.312% 20123		3,291			2,945
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20173		5,526			4,559
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183		8,918			7,134
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183		11,057			9,205
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193		5,163			4,543
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193		2,943			2,348
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203		9,145			7,773
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 20203		13,317			8,656
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223		3,171			2,664
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223		2,780			2,448
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20223		369			349
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223		10,907			8,620
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 6.55% 20142,3,4		10,366			9,588
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 7.47% 20142,3,4		10,488			9,702
DAE Aviation Holdings, Inc. 11.25% 20151,8		66,070			59,463
United Air Lines, 1991 Equipment Trust Certificates, Series A, 10.11% 20063,8,9		1,136			—
United Air Lines, Inc., Series 2000-2, Class B, 7.811% 20113,9		17,433			20,135
United Air Lines, Inc., Series 2000-2, Class A-2, 7.186% 20123		4,082			4,122
United Air Lines, Inc., Term Loan B, 5.75% 20142,3,4		45,624			28,544
United Air Lines, Inc., Series 2001-1, Class A-1, 6.071% 20143		1,887			1,776
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20153		1,590			1,575
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3		8,966			6,231
AMR Corp., Series B, 10.45% 2011		1,850			1,216
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20123		17,375			14,248
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20123		8,690			7,604
AMR Corp. 9.00% 2012		16,155			10,582
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20133		1,300			1,197
AMR Corp. 9.00% 2016		1,475			907
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20193		20,457			10,024
AMR Corp. 9.88% 20208		1,275			797
AMR Corp. 9.80% 20218		2,555			1,597
AMR Corp. 10.00% 20218		9,000			5,625
Ashtead Group PLC 8.625% 20151		17,750			15,354
Ashtead Capital, Inc. 9.00% 20161		43,270			37,429
ARAMARK Corp., Term Loan B, 5.637% 20142,3,4		15,587			13,666
ARAMARK Corp., Term Loan B, Letter of Credit, 5.637% 20142,3,4		990			868
ARAMARK Corp. 6.301% 20152		12,520			11,018
ARAMARK Corp. 8.50% 2015		28,745			27,164
DynCorp International and DIV Capital Corp., Series B, 9.50% 2013		29,367			28,780
DynCorp International and DIV Capital Corp. 9.50% 20131		23,310			23,193
Hawker Beechcraft Acquisition Co., LLC 8.50% 2015		4,975			4,577
Hawker Beechcraft Acquisition Co., LLC 8.875% 20155		48,710			44,326
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017		2,880			2,592
US Investigations Services, Inc., Term Loan B, 5.954% 20152,3,4		10,648			9,210
US Investigations Services, Inc. 10.50% 20151		34,825			31,168
US Investigations Services, Inc. 11.75% 20161,8		12,875			10,300
DRS Technologies, Inc. 6.875% 2013		21,630			21,522
DRS Technologies, Inc. 6.625% 2016		5,400			5,481
DRS Technologies, Inc. 7.625% 2018		18,175			19,084
NTK Holdings Inc. 0%/10.75% 20143,6		53,460			23,255
THL Buildco, Inc. 8.50% 2014		34,620			19,907
Allied Waste North America, Inc., Series B, 6.50% 2010		9,500			9,334
Allied Waste North America, Inc., Series B, 5.75% 2011		8,450			8,133
Allied Waste North America, Inc., Series B, 6.125% 2014		5,350			4,949
Allied Waste North America, Inc., Series B, 7.375% 2014		15,705			15,352
Allied Waste North America, Inc. 6.875% 2017		2,800			2,618
Navios Maritime Holdings Inc. 9.50% 2014		35,900			33,208
Delta Air Lines, Inc., Series 2000-1, Class A-1, 7.379% 20113		1,120			1,089
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20123		17,018			15,401
Delta Air Lines, Inc., Series 2000-1, Class B, 7.92% 20123		3,500			3,028
Delta Air Lines, Inc., Second Lien Term Loan B, 6.954% 20142,3,4		11,850			8,422
CEVA Group PLC 10.00% 20141		9,675			9,336
CEVA Group PLC, Bridge Loan, 7.736% 20152,3,4,8		26,763			16,593
Northwest Airlines, Inc., Term Loan B, 7.27% 20132,3,4,8		14,386			13,558
Northwest Airlines, Inc., Term Loan A, 5.52% 20182,3,4,8		11,489			10,368
Atrium Companies, Inc., Term Loan B, 6.54% 20122,3,4		24,079			17,698
ACIH, Inc. 11.50% 20121,9		37,235			4,654
RBS Global, Inc. and Rexnord LLC 9.50% 2014		11,675			11,033
RBS Global, Inc. and Rexnord LLC 8.875% 2016		8,475			7,755
TFM, SA de CV 9.375% 2012		17,775			18,219
Accuride Corp. 8.50% 2015		26,755			17,123
B/E Aerospace 8.50% 2018		16,105			15,662
Kansas City Southern Railway Co. 7.50% 2009		10,067			10,117
Kansas City Southern Railway Co. 8.00% 2015		3,400			3,366
RSC Holdings III, LLC, Second Lien Term Loan B, 6.30% 20132,3,4		16,541			13,037
United Rentals (North America), Inc., Series B, 6.50% 2012		10,675			8,967
United Rentals (North America), Inc. 7.75% 2013		3,625			2,764
TransDigm Inc. 7.75% 2014		11,960			11,302
Mobile Services Group, Inc. 9.75% 2014		10,000			9,350
H&E Equipment Services, Inc. 8.375% 2016		11,875			8,847
Esterline Technologies Corp. 6.625% 2017		8,250			7,879
Quebecor World Inc. 8.75% 20161,9		17,615			7,134
Sequa Corp., Term Loan B, 6.96% 20142,3,4		7,365			6,617
Alion Science and Technology Corp. 10.25% 2015		10,350			6,572
Esco Corp. 6.694% 20131,2		950			879
Esco Corp. 8.625% 20131		5,600			5,516
Hertz Corp. 8.875% 2014		3,175			2,754
Hertz Corp. 10.50% 2016		4,250			3,570
Park-Ohio Industries, Inc. 8.375% 2014		6,225			4,964
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014		5,150			3,927
					1,157,767
TELECOMMUNICATION SERVICES — 8.38%
Qwest Capital Funding, Inc. 7.90% 2010		18,285			17,782
Qwest Capital Funding, Inc. 7.25% 2011		83,750			78,725
Qwest Communications International Inc. 7.25% 2011		43,725			41,648
Qwest Corp. 8.875% 2012		3,600			3,546
Qwest Capital Funding, Inc. 7.625% 2021		1,325			1,014
U S WEST Capital Funding, Inc. 6.875% 2028		3,300			2,310
Sprint Capital Corp. 6.375% 2009		2,980			2,921
Sprint Nextel Corp. 4.169% 20102		5,120			4,771
Nextel Communications, Inc., Series E, 6.875% 2013		15,513			10,555
Nextel Communications, Inc., Series F, 5.95% 2014		71,690			48,083
Nextel Communications, Inc., Series D, 7.375% 2015		52,978			34,985
Sprint Nextel Corp. 6.00% 2016		25,250			19,472
Sprint Capital Corp. 6.90% 2019		15,655			12,154
Sprint Capital Corp. 8.75% 2032		13,245			10,353
Windstream Corp. 8.125% 2013		93,400			89,197
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015		31,370			29,919
Windstream Corp. 8.625% 2016		12,300			11,408
Centennial Communications Corp. 8.541% 20132		49,250			45,064
Centennial Communications Corp. 10.00% 2013		13,750			13,234
Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013		37,505			37,318
Centennial Communications Corp., Centennial Cellular Operating Co. LLC and
Centennial Puerto Rico Operations Corp. 8.125% 20142		24,175			24,054
American Tower Corp. 7.125% 2012		56,985			56,415
American Tower Corp. 7.50% 2012		14,100			13,959
American Tower Corp. 7.00% 20171		21,825			20,952
MetroPCS Wireless, Inc., Term Loan B, 5.063% 20132,3,4		15,732			14,139
MetroPCS Wireless, Inc. 9.25% 2014		58,200			54,708
Cricket Communications, Inc. 9.375% 2014		49,230			46,030
Cricket Communications, Inc. 10.875% 2014		16,875			15,778
Orascom Telecom 7.875% 20141		32,780			28,846
Digicel Group Ltd. 8.875% 20151		29,100			24,517
Cincinnati Bell Inc. 7.25% 2013		24,800			22,444
NTELOS Inc., Term Loan B, 5.96% 20112,3,4		20,751			19,701
Rogers Wireless Inc. 7.25% 2012		6,375			6,477
Rogers Wireless Inc. 7.50% 2015		12,025			12,239
Hawaiian Telcom Communications, Inc. 8.486% 20132		19,715			3,844
Hawaiian Telcom Communications, Inc. 9.75% 2013		23,340			4,785
Hawaiian Telcom Communications, Inc., Term Loan C, 6.262% 20142,3,4		8,877			6,239
Hawaiian Telcom Communications, Inc., Series B, 12.50% 2015		8,725			1,265
Level 3 Financing, Inc. 9.25% 2014		19,150			14,554
ALLTEL Corp., Term Loan B3, 4.997% 20152,3,4		12,177			11,925
Millicom International Cellular SA 10.00% 2013		10,050			10,000
Telecom Italia Capital SA 7.721% 2038		10,000			8,309
Trilogy International Partners LLC, Term Loan B, 7.262% 20122,3,4		10,475			8,275
Nordic Telephone Co. Holding ApS 8.875% 20161		7,900			7,229
Citizens Communications Co. 7.875% 2027		9,350			7,059
América Móvil, SAB de CV 8.46% 2036	MXN65,000				5,228
Intelsat, Ltd. 6.50% 2013	$	4,475			2,886
					966,316
HEALTH CARE — 8.24%
Tenet Healthcare Corp. 6.375% 2011		9,820			9,108
Tenet Healthcare Corp. 7.375% 2013		16,435			15,038
Tenet Healthcare Corp. 9.875% 2014		149,910			146,912
Tenet Healthcare Corp. 9.25% 2015		51,220			48,659
Tenet Healthcare Corp. 6.875% 2031		200			137
HealthSouth Corp. 9.133% 20142		57,805			56,360
HealthSouth Corp. 10.75% 20168		86,990			90,035
VWR Funding, Inc. 10.25% 20152,5,8		116,360			98,906
HCA Inc., Term Loan B, 6.012% 20132,3,4		68,007			60,551
HCA Inc. 9.125% 2014		4,345			4,236
HCA Inc. 9.25% 2016		7,700			7,507
HCA Inc. 9.625% 20165		9,715			9,254
Elan Finance PLC and Elan Finance Corp. 7.75% 2011		5,375			4,891
Elan Finance PLC and Elan Finance Corp. 6.935% 20132		16,120			13,299
Elan Finance PLC and Elan Finance Corp. 8.875% 2013		65,255			55,140
PTS Acquisition Corp. 9.50% 20155,8		71,750			53,812
Boston Scientific Corp. 5.45% 2014		4,885			4,592
Boston Scientific Corp. 6.40% 2016		4,190			4,001
Boston Scientific Corp. 5.125% 2017		3,685			3,141
Boston Scientific Corp. 7.00% 2035		41,985			37,577
Warner Chilcott Corp. 8.75% 2015		35,474			35,119
Mylan Inc., Term Loan B, 7.063% 20142,3,4,8		35,298			32,474
Surgical Care Affiliates, Inc. 8.875% 20151,5,8		23,275			19,551
Surgical Care Affiliates, Inc. 10.00% 20171,8		17,585			12,837
Bausch & Lomb Inc. 9.875% 20151		33,050			31,480
Team Finance LLC and Health Finance Corp. 11.25% 20138		30,640			31,253
Viant Holdings Inc. 10.125% 20171		34,310			27,963
CHS/Community Health Systems, Inc. 8.875% 2015		18,210			17,391
Symbion Inc. 11.00% 20151,2,5		20,830			15,727
AMR HoldCo, Inc. and EmCare HoldCo, Inc. 10.00% 20158		2,625			2,704
					949,655
FINANCIALS — 8.01%
Ford Motor Credit Co. 5.625% 2008		3,570			3,570
Ford Motor Credit Co. 4.904% 20091,2,8		5,250			4,830
Ford Motor Credit Co. 7.375% 20098		4,725			3,897
Ford Motor Credit Co. 8.625% 2010		3,805			2,699
Ford Motor Credit Co. 9.75% 20102,8		31,000			22,908
Ford Motor Credit Co. 7.25% 2011		5,000			3,181
Ford Motor Credit Co. 7.375% 2011		10,025			6,665
Ford Motor Credit Co. 9.875% 2011		5,000			3,451
Ford Motor Credit Co. 5.538% 20122,8		111,310			67,343
Ford Motor Credit Co. 7.80% 20128		3,000			1,932
Ford Motor Credit Co. 8.00% 2016		9,515			6,024
Residential Capital Corp. 8.125% 2008		2,515			2,150
GMAC LLC 4.054% 20092		1,300			941
General Motors Acceptance Corp. 5.625% 20098		18,000			13,344
General Motors Acceptance Corp. 5.85% 2009		5,000			4,274
General Motors Acceptance Corp. 7.75% 2010		18,000			10,780
Residential Capital Corp. 8.375% 20102		26,575			6,245
Residential Capital Corp. 8.50% 20101,8		2,174			1,196
General Motors Acceptance Corp. 7.25% 2011		47,035			22,257
General Motors Acceptance Corp. 6.625% 2012		3,000			1,271
General Motors Acceptance Corp. 6.875% 2012		11,450			4,554
General Motors Acceptance Corp. 7.00% 2012		22,550			9,197
General Motors Acceptance Corp. 5.011% 20142,8		15,000			5,550
General Motors Acceptance Corp. 6.75% 2014		4,120			1,583
Realogy Corp., Term Loan, Letter of Credit, 5.468% 20132,3,4		4,904			3,716
Realogy Corp., Term Loan B, 5.487% 20132,3,4		22,971			17,408
Realogy Corp. 10.50% 2014		110,055			48,974
Realogy Corp. 11.00% 20145		23,225			9,000
Realogy Corp. 12.375% 2015		9,625			3,321
Countrywide Home Loans, Inc., Series M, 4.125% 2009		19,776			18,192
Countrywide Home Loans, Inc., Series K, 5.625% 2009		8,522			8,061
Countrywide Financial Corp., Series A, 4.50% 2010		4,986			4,508
Countrywide Financial Corp., Series B, 5.80% 2012		24,715			20,895
Countrywide Financial Corp. 6.25% 2016		5,875			4,188
MBNA Capital A, Series A, 8.278% 2026		7,500			6,740
Countrywide Financial Corp., Series A, 0% 20371,2		15,000			14,775
Countrywide Financial Corp., Series A, 0% 20372		28,500			28,072
Bank of America Corp., Series M, 8.125% noncumulative preferred (undated)2		9,000			7,283
E*TRADE Financial Corp. 8.00% 2011		22,475			19,666
E*TRADE Financial Corp. 7.375% 2013		4,375			3,587
E*TRADE Financial Corp. 7.875% 2015		36,920			29,721
CIT Group Inc. 2.925% 20092		7,980			6,825
CIT Group Inc. 4.125% 2009		19,548			16,980
CIT Group Inc. 4.25% 2010		21,925			14,455
CIT Group Inc. 5.40% 2012		541			311
CIT Group Inc. 7.625% 2012		16,615			10,548
CIT Group Inc. 7.75% 2012		578			405
CIT Group Inc. 5.40% 2013		80			45
CIT Group Inc. 5.65% 2017		3,385			1,654
Liberty Mutual Group Inc., Series A, 7.80% 20871		8,260			4,999
Liberty Mutual Group Inc., Series C, 10.75% 20881,2		59,740			43,085
Rouse Co. 3.625% 2009		12,415			11,111
Rouse Co. 7.20% 2012		12,145			8,684
Rouse Co. 5.375% 2013		22,130			13,610
Rouse Co. 6.75% 20131		17,950			12,296
TuranAlem Finance BV 7.875% 2010		10,000			7,950
TuranAlem Finance BV 7.75% 20131		8,500			5,170
TuranAlem Finance BV 8.50% 2015		4,000			2,500
TuranAlem Finance BV 8.50% 20151		2,280			1,425
TuranAlem Finance BV 8.25% 20371		17,970			10,108
Merrill Lynch & Co., Inc. 6.875% 2018		28,000			24,814
Citigroup Capital XXI 8.30% 20772		28,675			21,412
Kazkommerts International BV 8.50% 20131		3,500			2,275
Kazkommerts International BV 8.50% 2013		1,500			975
Kazkommerts International BV 7.875% 20141		10,000			5,950
Kazkommerts International BV 8.00% 20151		6,000			3,630
Kazkommerts International BV 8.00% 2015		3,000			1,815
Kazkommerts International BV, Series 4, 7.50% 2016		7,500			4,313
Host Marriott, LP, Series M, 7.00% 2012		11,100			9,962
Host Marriott, LP, Series K, 7.125% 2013		1,950			1,745
Host Hotels & Resorts, LP, Series S, 6.875% 2014		7,175			6,242
Lazard Group LLC 7.125% 2015		11,650			10,125
Lazard Group LLC 6.85% 2017		8,245			6,839
SLM Corp., Series A, 5.375% 2013		9,000			5,900
SLM Corp., Series A, 3.10% 20142		7,000			3,998
SLM Corp., Series A, 8.45% 2018		10,000			6,810
SMFG Preferred Capital USD 2 Ltd. 8.75% noncumulative preferred (undated)1		6,700			6,881
SMFG Preferred Capital USD 3 Ltd. 9.50% (undated)1,2		9,360			8,947
HSBK (Europe) BV 7.75% 2013		7,660			5,304
HSBK (Europe) BV 7.75% 20131		1,200			831
HSBK (Europe) BV 7.25% 20171		13,765			8,610
iStar Financial, Inc. 6.00% 2010		7,862			4,700
iStar Financial, Inc., Series B, 5.125% 2011		2,788			1,423
iStar Financial, Inc. 6.50% 2013		5,156			2,658
iStar Financial, Inc. 8.625% 2013		5,000			2,602
iStar Financial, Inc., Series B, 5.70% 2014		444			218
MetLife Capital Trust X 9.25% 20681,2		12,000			11,418
Capmark Financial Group Inc. 3.453% 20102		9,000			6,394
Capmark Financial Group Inc. 5.875% 2012		7,700			3,841
Wells Fargo Capital XV 9.75% (undated)2		9,600			9,321
International Lease Finance Corp., Series R, 6.375% 2013		7,900			4,993
International Lease Finance Corp., Series R, 5.65% 2014		4,000			2,359
Sovereign Bancorp, Inc. 3.44% 20102		10,475			7,338
LaBranche & Co Inc. 11.00% 2012		7,750			7,324
Advanta Capital Trust I, Series B, 8.99% 2026		12,000			6,540
Northern Rock PLC 5.60% (undated)1,2		900			472
Northern Rock PLC 6.594% (undated)1,2		11,400			5,985
Catlin Insurance Ltd. 7.249% (undated)1,2		14,250			6,369
JPMorgan Chase & Co., Series I, 7.90% (undated)2		7,500			6,331
Lehman Brothers Holdings Inc., Series G, 3.95% 20099		780			101
Lehman Brothers Holdings Inc., Series G, 4.25% 20109		740			96
Lehman Brothers Holdings Inc., Series I, 3.005% 20112,9		4,105			534
Lehman Brothers Holdings Inc., Series I, 5.25% 20129		3,750			487
Lehman Brothers Holdings Inc. 6.625% 20129		1,875			244
Lehman Brothers Holdings Inc., Series G, 4.80% 20149		5,000			650
Lehman Brothers Holdings Inc., Series I, 6.20% 20149		4,640			603
Lehman Brothers Holdings Inc., Series H, 5.50% 20169		360			47
Lehman Brothers Holdings Inc., Series I, 6.875% 20189		26,750			3,477
Zions Bancorporation 5.65% 2014		10,000			6,112
Hospitality Properties Trust 5.125% 2015		3,640			2,810
Hospitality Properties Trust 6.30% 2016		155			123
Hospitality Properties Trust 5.625% 2017		270			199
Hospitality Properties Trust 6.70% 2018		2,945			2,318
National City Preferred Capital Trust I 12.00% (undated)2		12,500			5,422
Agile Property Holdings Ltd. 9.00% 2013		8,050			5,213
Banco Mercantil del Norte, SA 6.135% 20161,8		3,500			3,272
Banco Mercantil del Norte, SA 6.862% 20211,2		2,000			1,774
AmeriCredit Corp. 8.50% 2015		5,668			4,761
Chevy Chase Bank, FSB 6.875% 2013		5,500			4,427
Morgan Stanley 10.09% 2017	BRL10,800				3,586
HBOS PLC 6.75% 20181	$	3,300			2,772
Barclays Bank PLC 7.70% (undated)1,2		3,000			2,474
UnumProvident Corp. 5.859% 2009		2,000			2,021
Schwab Capital Trust I 7.50% 20372		2,000			1,655
					922,952
INFORMATION TECHNOLOGY — 7.27%
NXP BV and NXP Funding LLC 5.541% 20132		42,850			28,442
NXP BV and NXP Funding LLC 7.713% 20132	€	15,900			13,756
NXP BV and NXP Funding LLC 7.875% 2014	$	68,575			46,288
NXP BV and NXP Funding LLC 8.625% 2015	€	64,225			44,272
NXP BV and NXP Funding LLC 9.50% 2015	$	156,040			80,751
Freescale Semiconductor, Inc., Term Loan B, 4.236% 20132,3,4		4,888			4,014
Freescale Semiconductor, Inc. 6.694% 20142		3,000			2,025
Freescale Semiconductor, Inc. 8.875% 2014		32,425			22,535
Freescale Semiconductor, Inc. 9.125% 20145		206,112			130,881
Freescale Semiconductor, Inc. 10.125% 2016		75,425			48,649
Sanmina-SCI Corp. 6.75% 2013		35,865			31,561
Sanmina-SCI Corp. 5.569% 20141,2		17,000			14,875
Sanmina-SCI Corp. 8.125% 2016		57,375			49,056
First Data Corp., Term Loan B2, 5.948% 20142,3,4		66,254			57,476
First Data Corp. 9.875% 20151		34,685			27,271
Hughes Communications, Inc. 9.50% 2014		53,375			52,041
SunGard Data Systems Inc. 9.125% 2013		39,889			36,100
SunGard Data Systems Inc. 4.875% 2014		4,500			3,847
Sensata Technologies BV, Term Loan B, 4.543% 20132,3,4		5,624			4,775
Sensata Technologies BV 8.00% 20142		32,755			27,842
Ceridian Corp. 11.25% 20151		32,925			27,245
Jabil Circuit, Inc. 5.875% 2010		4,250			4,101
Jabil Circuit, Inc. 8.25% 2018		22,415			21,070
Serena Software, Inc. 10.375% 2016		24,540			21,718
Celestica Inc. 7.875% 2011		10,525			10,262
Celestica Inc. 7.625% 2013		5,475			5,010
Nortel Networks Ltd. 7.041% 20112		12,250			8,238
Nortel Networks Ltd. 10.125% 2013		3,665			2,355
Nortel Networks Ltd. 10.75% 2016		1,325			818
Xerox Corp. 7.125% 2010		3,650			3,735
Xerox Corp. 7.625% 2013		5,000			5,067
MagnaChip Semiconductor SA and MagnaChip Semiconductor Finance Co. 8.00% 2014		18,010			2,206
Exodus Communications, Inc. 11.625% 20108,9		3,761			—
					838,282
UTILITIES — 5.01%
Edison Mission Energy 7.50% 2013		44,900			43,329
Edison Mission Energy 7.75% 2016		15,125			14,293
Midwest Generation, LLC, Series B, 8.56% 20163		39,629			40,818
Edison Mission Energy 7.00% 2017		26,020			23,548
Edison Mission Energy 7.20% 2019		46,450			41,108
Homer City Funding LLC 8.734% 20263		9,179			9,363
Edison Mission Energy 7.625% 2027		36,280			29,568
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 6.303% 20142,3,4		15,880			13,418
Texas Competitive Electric Holdings Co. LLC 10.25% 20151		64,400			58,443
Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 20151		60,035			54,482
Texas Competitive Electric Holdings Co. LLC 10.50% 20161,5		12,000			10,230
Intergen Power 9.00% 20171		71,775			72,134
AES Corp. 9.50% 2009		2,638			2,625
AES Corp. 9.375% 2010		5,508			5,536
AES Corp. 8.875% 2011		8,475			8,390
AES Corp. 8.75% 20131		13,542			13,677
AES Gener SA 7.50% 2014		15,350			16,243
AES Corp. 7.75% 2015		2,000			1,825
AES Red Oak, LLC, Series A, 8.54% 20193		7,300			7,300
AES Red Oak, LLC, Series B, 9.20% 20293		5,000			4,900
NRG Energy, Inc. 7.25% 2014		22,925			21,320
NRG Energy, Inc. 7.375% 2016		33,700			30,414
Nevada Power Co., General and Refunding Mortgage Bonds, Series A, 8.25% 2011		4,000			4,290
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series H, 6.25% 2012		3,000			3,022
Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012		2,650			2,690
Sierra Pacific Resources 8.625% 2014		12,000			12,350
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015		2,475			2,351
Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016		1,600			1,514
Sierra Pacific Resources 6.75% 2017		2,000			1,838
ISA Capital do Brasil SA 7.875% 20121		3,275			3,152
ISA Capital do Brasil SA 8.80% 20171		11,800			11,358
Enersis SA 7.375% 2014		6,800			6,874
FPL Energy National Wind Portfolio, LLC 6.125% 20191,3		3,665			3,607
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20171		2,000			1,814
					577,824
MATERIALS — 4.81%
Jefferson Smurfit Corp. (U.S.) 8.25% 2012		33,010			27,728
Stone Container Corp. 8.375% 2012		12,840			10,850
Jefferson Smurfit Corp. (U.S.) 7.50% 2013		24,405			19,890
Smurfit-Stone Container Enterprises, Inc. 8.00% 2017		18,885			14,825
Georgia Gulf Corp. 9.50% 2014		77,340			47,951
Nalco Co. 7.75% 2011		29,940			29,491
Nalco Co. 8.875% 2013		1,000			1,003
Nalco Co. 9.00% 2013	€	1,000			1,336
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 0%/9.00% 20146,8	$	8,700			8,091
Building Materials Corp. of America 7.75% 2014		45,035			35,803
Algoma Steel Inc., Term Loan B, 5.69% 20132,3,4		6,361			5,948
Algoma Steel Inc. 9.875% 20151		31,750			28,773
Freeport-McMoRan Copper & Gold Inc. 6.875% 2014		3,000			2,973
Freeport-McMoRan Copper & Gold Inc. 8.25% 2015		16,290			16,025
Freeport-McMoRan Copper & Gold Inc. 8.375% 2017		12,345			12,178
Associated Materials Inc. 9.75% 2012		8,865			8,776
AMH Holdings, Inc. 0%/11.25% 20146		34,345			22,324
International Paper Co. 7.95% 2018		30,490			30,010
AEP Industries Inc. 7.875% 2013		23,280			17,576
Metals USA Holdings Corp. 8.791% 20122,5		18,795			15,130
Metals USA, Inc. 11.125% 2015		1,750			1,689
Rockwood Specialties Group, Inc. 7.50% 2014		5,765			5,506
Rockwood Specialties Group, Inc. 7.625% 2014	€	8,700			11,138
Plastipak Holdings, Inc. 8.50% 20151,8	$	20,340			16,577
Abitibi-Consolidated Inc. 8.55% 2010		5,775			2,223
Abitibi-Consolidated Co. of Canada 15.50% 20101,8		2,810			1,911
Abitibi-Consolidated Co. of Canada 6.319% 20112		6,975			2,302
Abitibi-Consolidated Inc. 7.75% 2011		9,110			2,961
Abitibi-Consolidated Co. of Canada 6.00% 2013		3,000			810
Abitibi-Consolidated Co. of Canada 8.375% 2015		19,790			4,898
Georgia-Pacific Corp. 8.125% 2011		11,600			11,542
Georgia-Pacific Corp., First Lien Term Loan B, 4.567% 20122,3,4		3,782			3,320
Graphic Packaging International, Inc. 8.50% 2011		11,890			11,355
Graphic Packaging International, Inc. 9.50% 2013		2,425			2,207
NewPage Corp., Series B, 10.00% 2012		7,250			6,525
NewPage Corp., Series A, 12.00% 2013		6,150			5,412
Domtar Corp. 5.375% 2013		5,075			4,314
Domtar Corp. 7.125% 2015		7,810			7,224
MacDermid 9.50% 20171		13,150			11,112
Neenah Paper, Inc. 7.375% 2014		12,595			10,045
FMG Finance Pty Ltd. 10.625% 20161		10,100			9,948
Ryerson Inc. 10.176% 20141,2		2,100			1,722
Ryerson Inc. 12.00% 20151		9,450			8,080
Boise Cascade, LLC and Boise Cascade Finance Corp. 7.125% 20148		14,038			9,125
Vale Overseas Ltd. 6.25% 2017		3,700			3,476
Vale Overseas Ltd. 6.875% 2036		4,000			3,580
C10 Capital (SPV) Ltd. 6.722% (undated)1,2		6,850			6,360
Allegheny Technologies, Inc. 8.375% 2011		5,000			5,318
Momentive Performance Materials Inc. 9.75% 2014		5,000			3,975
Airgas, Inc. 6.25% 2014		3,500			3,307
Airgas, Inc. 7.125% 20181		650			632
Owens-Illinois, Inc. 7.50% 2010		2,000			1,990
Owens-Brockway Glass Container Inc. 8.25% 2013		1,400			1,400
Owens-Brockway Glass Container Inc. 6.75% 2014	€	375			462
Smurfit Capital Funding PLC 7.50% 2025	$	4,250			3,549
Exopack Holding Corp. 11.25% 2014		3,650			3,084
Witco Corp. 6.875% 20268		5,080			2,972
Norampac Inc. 6.75% 2013		3,500			2,642
Novelis Inc. 7.25% 20152		2,750			2,406
Huntsman LLC 11.50% 2012		500			512
					554,292
ENERGY — 3.12%
Enterprise Products Operating LP 8.375% 20662		28,360			26,325
Enterprise Products Operating LP 7.034% 20682		96,310			77,771
Williams Companies, Inc. 4.791% 20101,2		28,000			27,495
Williams Companies, Inc. 6.375% 20101		6,000			5,883
Williams Companies, Inc. 8.125% 2012		9,800			9,909
Williams Companies, Inc. 7.875% 2021		1,650			1,653
Transcontinental Gas Pipe Line Corp. 7.25% 2026		6,650			6,407
Williams Companies, Inc. 8.75% 2032		20,830			21,412
Petroplus Finance Ltd. 6.75% 20141		18,250			15,513
Petroplus Finance Ltd. 7.00% 20171		38,825			32,419
Drummond Co., Inc. 7.375% 20161		47,880			40,818
Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011		11,375			11,154
Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017		22,850			21,283
Gaz Capital SA 6.51% 20221		10,000			7,225
Gaz Capital SA 7.288% 20371		11,800			8,437
TEPPCO Partners LP 7.00% 20672		16,665			14,032
Pemex Project Funding Master Trust 7.875% 2009		1,135			1,151
Pemex Project Funding Master Trust 5.75% 20181		5,850			5,565
Pemex Project Funding Master Trust 6.625% 20351		6,500			5,985
Forest Oil Corp. 7.25% 2019		13,750			11,825
Enbridge Energy Partners, LP 8.05% 20672		7,220			6,132
TransCanada PipeLines Ltd. 6.35% 20672		1,450			1,149
					359,543
CONSUMER STAPLES — 3.02%
Stater Bros. Holdings Inc. 8.125% 2012		42,605			41,966
Stater Bros. Holdings Inc. 7.75% 2015		28,425			26,720
Dole Food Co., Inc. 8.625% 2009		11,600			11,136
Dole Food Co., Inc. 7.25% 2010		18,845			16,678
Dole Food Co., Inc. 8.875% 2011		24,960			21,091
SUPERVALU INC., Term Loan B, 4.679% 20122,3,4		9,248			8,431
SUPERVALU INC. 7.50% 2012		3,860			3,764
Albertson’s, Inc. 7.25% 2013		4,990			4,865
SUPERVALU INC. 7.50% 2014		1,000			975
Albertson’s, Inc. 8.00% 2031		32,750			30,515
Duane Reade Inc. 7.319% 20102		15,170			13,881
Duane Reade Inc. 9.75% 2011		32,910			27,809
Constellation Brands, Inc. 8.375% 2014		6,775			6,741
Constellation Brands, Inc. 7.25% 2017		31,375			29,022
Elizabeth Arden, Inc. 7.75% 2014		24,012			21,971
Vitamin Shoppe Industries Inc. 10.304% 20122,8		19,535			18,094
Yankee Candle Co., Inc., Series B, 8.50% 2015		23,350			17,046
JBS SA 10.50% 2016		13,930			10,761
Smithfield Foods, Inc., Series B, 8.00% 2009		3,000			2,925
Smithfield Foods, Inc., Series B, 7.75% 2013		1,800			1,521
Smithfield Foods, Inc. 7.75% 2017		7,850			6,201
Cott Beverages Inc. 8.00% 2011		14,500			10,222
Rite Aid Corp. 7.70% 2027		8,500			3,357
Rite Aid Corp. 6.875% 2028		12,977			4,737
Pilgrim’s Pride Corp. 7.625% 2015		5,800			3,625
Pilgrim’s Pride Corp. 8.375% 2017		4,800			2,280
American Achievement Group Holding 14.75% 20125		2,393			2,252
					348,586
Total corporate bonds, notes & loans					9,165,096
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 3.49%
Brazilian Treasury Bill 6.00% 20108,10	BRL87,765				43,629
Brazil (Federal Republic of) Global 10.50% 20148	$	3,000			3,637
Brazil (Federal Republic of) 10.00% 20178	BRL13,000				5,495
Brazil (Federal Republic of) Global 8.00% 20183	$	6,820			7,332
Brazil (Federal Republic of) Global 10.25% 2028	BRL15,000				6,964
Brazil (Federal Republic of) Global 7.125% 2037	$	2,500			2,575
Brazil (Federal Republic of) Global 11.00% 2040		12,485			15,684
Brazilian Treasury Bill 6.00% 20458,10	BRL17,269				7,448
Turkey (Republic of) 15.00% 2010	TRY16,262				12,243
Turkey (Republic of) 14.00% 2011		30,550			21,803
Turkey (Republic of) 16.00% 2012		16,000			11,754
Turkey (Republic of) 6.75% 2018	$	3,250			3,071
Colombia (Republic of) Global 11.75% 2010	COP3,295,000				1,532
Colombia (Republic of) Global 10.00% 2012	$	1,500			1,673
Colombia (Republic of) Global 10.75% 2013		8,550			10,057
Colombia (Republic of) Global 8.25% 2014		4,000			4,360
Colombia (Republic of) Global 12.00% 2015	COP17,130,000				8,242
Colombia (Republic of) Global 11.75% 2020	$	1,936			2,686
Colombia (Republic of) Global 9.85% 2027	COP12,085,000				5,115
Colombia (Republic of) Global 10.375% 2033	$	823			1,123
Colombia (Republic of) Global 7.375% 2037		4,139			4,153
United Mexican States Government, Series M10, 10.50% 2011	MXN12,320				1,257
United Mexican States Government Global 6.375% 2013	$	6,970			7,183
United Mexican States Government, Series MI10, 9.50% 2014	MXN100,000				9,605
United Mexican States Government 5.00% 20168,10		60,164			5,970
United Mexican States Government, Series M20, 10.00% 2024		80,000			8,290
United Mexican States Government Global 6.75% 2034	$	6,105			6,151
Indonesia (Republic of) 12.50% 2013	IDR77,730,000				8,129
Indonesia (Republic of) 6.875% 20171	$	1,000			920
Indonesia (Republic of) 6.875% 20181		3,725			3,408
Indonesia (Republic of) 11.50% 2019	IDR25,000,000				2,385
Indonesia (Republic of) 11.00% 2020		69,275,000			6,349
Indonesia (Republic of) 12.80% 2021		25,440,000			2,616
Indonesia (Republic of) 12.90% 2022		54,492,000			5,625
Indonesia (Republic of) 11.00% 2025		40,562,000			3,601
Indonesia (Republic of) 10.25% 2027		725,000			60
Indonesia (Republic of) 6.625% 20371	$	2,500			1,997
Panama (Republic of) Global 7.125% 2026		585			603
Panama (Republic of) Global 8.875% 20278		6,500			7,758
Panama (Republic of) Global 6.70% 20363		28,009			26,609
Russian Federation 12.75% 2028		2,000			3,215
Russian Federation 7.50% 20303		23,388			23,680
Egypt (Arab Republic of) 9.10% 2010	EGP50,497				9,059
Egypt (Arab Republic of) 9.10% 2010		3,130			557
Egypt (Arab Republic of) 11.50% 2011		9,380			1,723
Egypt (Arab Republic of) 9.10% 2012		18,225			3,093
Egypt (Arab Republic of) 11.625% 2014		49,265			9,008
Argentina (Republic of) 1.564% 20122,3,8	$	12,100			4,351
Argentina (Republic of) 5.83% 20333,5,8,10	ARS 11,829				2,058
Argentina (Republic of) GDP-Linked 2035		201,406			5,433
Argentina (Republic of) GDP-Linked 2035	$	35,979			2,914
Argentina (Republic of) 0.63% 20383,8,10	ARS111,941				6,798
Malaysian Government 3.833% 2011	MYR44,500				12,884
Venezuela (Republic of) 10.75% 2013	$	6,000			5,535
Venezuela (Republic of) Global 8.50% 20148		1,250			1,025
Venezuela (Republic of) 7.65% 2025		8,455			5,158
Uruguay (Republic of) 4.25% 20273,8,10	UYU139,476				6,071
Dominican Republic 9.50% 20113	$	3,376			3,325
Dominican Republic 9.50% 20111,3		2,062			2,031
Corporación Andina de Fomento 5.75% 2017		3,000			2,776
Thai Government 4.125% 2009	THB73,490				2,180
					401,966
MORTGAGE-BACKED OBLIGATIONS3 — 1.29%
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20371,8	$	10,725			8,472
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20371,8		38,760			29,931
Crown Castle Towers LLC, Series 2006-1, Class F, 6.650% 20361,8		30,490			26,427
Crown Castle Towers LLC, Series 2006-1, Class G, 6.795% 20361,8		12,250			10,667
SBA CMBS Trust, Series 2006-1A, Class F, 6.709% 20361		1,450			1,372
SBA CMBS Trust, Series 2006-1A, Class G, 6.904% 20361		5,950			5,647
SBA CMBS Trust, Series 2006-1A, Class H, 7.389% 20361		11,615			10,064
SBA CMBS Trust, Series 2006-1A, Class J, 7.825% 20361		12,950			11,891
Countrywide Alternative Loan Trust, Series 2005-64CB, Class 2-A-1, 6.00% 2035		28,218			17,986
Countrywide Alternative Loan Trust, Series 2007-14T2, Class A-4, 3.557% 20372		8,033			4,532
Tower Ventures, LLC, Series 2006-1, Class E, 6.495% 20361,8		4,000			3,585
Tower Ventures, LLC, Series 2006-1, Class F, 7.036% 20361,8		20,405			18,136
					148,710
U.S. TREASURY BONDS & NOTES — 0.21%
U.S. Treasury 6.00% 2026		21,000			24,932
ASSET-BACKED OBLIGATIONS3 — 0.08%
Green Tree Financial Corp., Series 2008-MH1, Class A-3, 8.97% 20381,8		6,000			5,178
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 2.628% 20372		5,123			3,951
					9,129
Total bonds, notes & other debt instruments (cost: $11,925,450,000)					9,749,833
Convertible securities — 0.50%	Shares or principal amount
CONSUMER DISCRETIONARY — 0.25%
Amazon.com, Inc. 6.875% PEACS convertible notes 2010	€	20,645,000			28,608
INFORMATION TECHNOLOGY — 0.15%
Advanced Micro Devices, Inc. 6.00% convertible notes 2015	$	18,000,000			8,843
Advanced Micro Devices, Inc. 5.75% convertible notes 2012	$	13,900,000			7,992
					16,835
FINANCIALS — 0.06%
Citigroup Inc., Series J, 7.00% noncumulative convertible preferred depositary shares7,8		150,000			6,458
Fannie Mae, Series 2004-1, 5.375% convertible preferred		177			619
					7,077
HEALTH CARE — 0.04%
Schering-Plough Corp., 6.00% convertible preferred 2010		29,900			5,173
Total convertible securities (cost: $72,079,000)					57,693
Preferred securities — 0.70%	Shares
FINANCIALS — 0.70%
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities1		1,125,000			33,398
Citigroup Inc., Series E, 8.40%2		26,500,000			18,071
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative1,2		26,075,000			13,380
Bank of America Corp., Series K, 8.00% noncumulative2		5,000,000			3,965
RBS Capital Trust IV 4.562% noncumulative trust2		4,000,000			2,988
ILFC E-Capital Trust II 6.25%1,2		8,000,000			2,393
Chevy Chase Preferred Capital Corp., Series A, 10.375% exchangeable		55,994			2,164
SMFG Preferred Capital USD 1 Ltd. 6.078%1,2		2,770,000			1,992
Fannie Mae, Series S, 8.25% noncumulative		523,450			1,080
Fannie Mae, Series O, 7.00%1,2		174,640			475
Freddie Mac, Series Z, 8.375%		320,000			513
IndyMac Bancorp, Inc., Series A, 8.50% noncumulative1		2,406,000			24
Total preferred securities (cost: $188,899,000)					80,443
				Value
Common stocks — 1.25%	Shares				(000	)
TELECOMMUNICATION SERVICES — 0.47%
AT&T Inc.		1,000,000		$	27,920
American Tower Corp., Class A11		538,967			19,387
Sprint Nextel Corp., Series 1		777,508			4,743
Embarq Corp.		38,875			1,576
Cincinnati Bell Inc.11		70,740			219
XO Holdings, Inc.11		25,291			10
					53,855
INDUSTRIALS — 0.24%
Northwest Airlines Corp.11		1,407,835			12,713
DigitalGlobe Inc.7,8,11		3,064,647			10,726
Delta Air Lines, Inc.11		476,419			3,549
UAL Corp.11		22,911			202
					27,190
CONSUMER DISCRETIONARY — 0.18%
Ford Motor Co.11		1,877,140			9,761
Time Warner Cable Inc., Class A11		374,652			9,067
Adelphia Recovery Trust, Series Arahova8,11		1,773,964			798
Adelphia Recovery Trust, Series ACC-111		16,413,965			328
Adelphia Recovery Trust, Series ACC-6B8,11		3,619,600			72
CBS Corp., Class B		31,612			461
Emmis Communications Corp., Class A11		201,000			195
Radio One, Inc., Class D, nonvoting11		44,000			33
Radio One, Inc., Class A11		22,000			31
Mobile Travel Guide, Inc.7,8,11		83,780			21
					20,767
UTILITIES — 0.14%
Drax Group PLC		1,230,700			16,463
INFORMATION TECHNOLOGY — 0.11%
Micron Technology, Inc.1,11		678,656			2,749
Micron Technology, Inc.11		424,160			1,718
Fairchild Semiconductor International, Inc.11		500,000			4,445
ZiLOG, Inc.11,12		1,140,500			3,661
HSW International, Inc.7,8,11		257,091			477
					13,050
HEALTH CARE — 0.08%
UnitedHealth Group Inc.		375,000			9,521
Clarent Hospital Corp.8,11,12		576,849			29
					9,550
CONSUMER STAPLES — 0.03%
Winn-Dixie Stores, Inc.11		194,677			2,706
Total common stocks (cost: $217,126,000)					143,581
Warrants — 0.00%
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc., Series A, warrants, expire 201011		50,587			1
XO Holdings, Inc., Series B, warrants, expire 20108,11		37,939			1
XO Holdings, Inc., Series C, warrants, expire 201011		37,939			1
GT Group Telecom Inc., warrants, expire 20101,8,11		11,000			—
Total warrants (cost: $572,000)					3
	Principal amount			Value
Short-term securities — 11.13%		(000	)		(000	)
AT&T Inc. 2.15%–2.20% due 10/14–11/25/20081	$	146,700		$	146,120
Hewlett-Packard Co. 2.16%–3.00% due 10/2–11/19/20081		129,200			128,932
Procter & Gamble International Funding S.C.A. 2.08%–2.18% due 10/14–12/2/20081		85,800			85,581
Freddie Mac 2.13%–2.40% due 11/18–12/30/2008		85,200			84,919
Illinois Tool Works Inc. 2.12%–2.15% due 10/1–11/21/2008		72,500			72,294
Fannie Mae 2.25%–2.90% due 12/8–12/24/2008		70,100			69,917
Merck & Co. Inc. 2.10%–2.20% due 10/24–10/31/2008		67,400			67,288
Pfizer Inc 2.09%–2.17% due 10/8–11/7/20081		65,000			64,871
Medtronic Inc. 2.07%–2.08% due 10/22–11/20/20081		64,900			64,741
NetJets Inc. 2.10% due 10/21/20081		50,000			49,939
Federal Home Loan Bank 2.60%–3.10% due 12/12–12/15/2008		45,100			44,974
Bank of America Corp. 2.69% due 11/18/2008		25,200			25,088
Ranger Funding Co. LLC 3.50% due 11/6/20081		18,000			17,935
Coca-Cola Co. 2.13%–2.15% due 10/17/2008–1/16/20091		43,000			42,762
Johnson & Johnson 2.03%–2.05% due 11/13–11/20/20081		42,100			41,918
Variable Funding Capital Corp. 2.49% due 10/8/20081		30,900			30,883
Jupiter Securitization Co., LLC 5.50% due 10/1/20081		15,500			15,498
Park Avenue Receivables Co., LLC 2.62% due 10/20/20081		13,000			12,981
IBM International Group Capital LLC 2.09% due 10/9/20081		26,500			26,486
Honeywell International Inc. 2.07% due 10/16/20081		25,600			25,569
Walt Disney Co. 2.00% due 10/9/2008		25,000			24,988
John Deere Credit Ltd. 2.12% due 10/10/2008		25,000			24,985
Harvard University 2.08% due 10/14/2008		25,000			24,974
CAFCO, LLC 2.62% due 10/24/20081		25,000			24,956
Private Export Funding Corp. 2.20% due 12/8/20081		25,000			24,832
United Parcel Service Inc. 2.04% due 10/2/20081		20,000			19,998
Wells Fargo & Co. 2.57% due 10/15/2008		19,600			19,579
Total short-term securities (cost: $1,283,268,000)					1,283,008
Total investment securities (cost: $13,687,394,000)					11,314,561
Other assets less liabilities					213,684
Net assets				$	11,528,245

1	Purchased in a transaction exempt from registration under 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 $2,588,026,000, which represented 22.45% of the net assets of the fund.
2	Coupon rate may change periodically.

3 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

4 Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $686,496,000, which represented 5.95% of the net assets of the fund.

5 Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

6 Step bond; coupon rate will increase at a later date.

7 Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.

	Acquisition date(s)	Cost (000)		Value (000)		Percent of net assets
Gray Television Inc., Series D, 12.00%/15.00% (undated)	6/26/2008–7/15/2008	$	61,275	$	56,438		.49	%
DigitalGlobe Inc.	4/14/1999–7/31/2003		2,500		10,726		.09
Citigroup Inc., Series J, 7.00%,
noncumulative convertible preferred depositary shares	1/15/2008		7,500		6,458		.06
HSW International, Inc.	12/17/2007		791		477		—
Mobil Travel Guide, Inc.	12/17/2007		21		21		—
Total restricted securities		$	72,087	$	74,120		.64	%

8 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $994,753,000, which represented 8.63% of the net assets of the fund.

9 Scheduled interest and/or principal payment was not received.

10 Index-linked bond whose principal amount moves with a government retail price index.

11 Security did not produce income during the last 12 months.

12 Represents an affiliated company as defined under the Investment Company Act of 1940.

Key to abbreviations and symbols
ARS = Argentine pesos	IDR = Indonesian rupiah
BRL = Brazilian reais	MXN = Mexican pesos
COP = Colombian pesos	MYR = Malaysian ringgits
EGP = Egyptian pounds	THB = Thai baht
€ = Euros	TRY = New Turkish liras
£ = British pounds	UYU = Uruguayan pesos

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.

MFGEFP-921-1108O-S15843

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT PORTFOLIO

To the Shareholders and Board of Trustees of

American High-Income Trust:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of American High-Income Trust (the “Fund”) as of September 30, 2008, and for the year then ended and have issued our report thereon dated November 10, 2008, which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR.  Our audit also included the Fund’s investment portfolio (the “Schedule”) as of September 30, 2008, appearing in Item 6 of this Form N-CSR.  This Schedule is the responsibility of the Fund’s management.  Our responsibility is to express an opinion based on our audit.  In our opinion, the Schedule referred to above, when considered in relation to the basic financial statements taken as a whole of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

DELOITTE & TOUCHE LLP

Costa Mesa, California

November 10, 2008

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

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

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

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

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

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

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

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

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

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

AMERICAN HIGH-INCOME TRUST

By /s/ David C. Barclay

David C. Barclay, President and

Principal Executive Officer

Date: December 8, 2008

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/ David C. Barclay

David C. Barclay, President and

Principal Executive Officer

Date: December 8, 2008

By /s/ Ari M. Vinocor

Ari M. Vinocor, Treasurer and

Principal Financial Officer

Date: December 8, 2008