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, 2017
Steven I. Koszalka
American High-Income Trust
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
 | American High-Income Trust® |
| Annual report for the year ended September 30, 2017 | |
Pursue sustainable
income over time
American High-Income Trust seeks to provide you with a high level of current income. Its secondary investment objective is capital appreciation.
This fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 85 years, Capital has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (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. For current information and month-end results, visit americanfunds.com.
See page 3 for Class A share results with relevant sales charges deducted. For other share class results, visit americanfunds.com and americanfundsretirement.com.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
The fund’s 30-day yield for Class A shares as of October 31, 2017, calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula, was 4.63%. The fund’s 12-month distribution rate for Class A shares as of that date was 5.22%. 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.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
| 1 | Letter to investors |
| 3 | The value of a long-term perspective |
| 4 | Summary investment portfolio |
| 11 | Financial statements |
| 34 | Board of trustees and other officers |
Fellow investors:
For the 12-month period ended September 30, 2017, American High-Income Trust reported a total return of 8.73%. By comparison, the fund’s benchmark, the unmanaged Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index, returned 8.87% for the period, while the Lipper High Yield Funds Average, a benchmark of similar funds, posted a total return of 7.72%.
The fund’s total return assumes a 57 cents a share reinvestment of monthly dividends. Shareholders who reinvested dividends received an income return of 5.73% for the period. Those who elected to take their dividends in cash received an income return of 5.59% and saw the value of their holdings increase by 2.95%.
High-yield market overview
The 2016 high yield rally extended through the reporting period, as the strong post-election rally in global equity markets and expectations for stronger growth in the U.S. economy created a favorable environment for corporate bonds. The global macroeconomic environment continues to be very supportive of the high yield market, with solid economic growth and low inflation in most major markets. Modest economic growth and low inflation are positive for high yield issuers because these factors combine to keep interest rates and debt service burdens low, limiting defaults. Persistent low rates globally, meanwhile, have resulted in robust demand for income generated by high yield bonds.
The equity and fixed income (including high yield) markets have posted strong returns after the financial crisis. While nominal yields in high yield have declined over this time period and are currently low by historical standards, we believe valuations in high yield are broadly consistent with valuations of risk premiums across multiple asset classes. Slow but steady growth continues to mark the ongoing economic expansion and investor demand remains high.
Inside the portfolio
The fund generated returns in excess of its Lipper benchmark during this reporting cycle. Energy and industrial commodity holdings were a particularly important factor in the fund’s success. We had increased our exposure to select
Results at a glance
For periods ended September 30, 2017, with all distributions reinvested
| Cumulative | Average annual | |||||||||||||||
| total returns | total returns | |||||||||||||||
| 1 year | 5 years | 10 years | Lifetime (since 2/19/88) | |||||||||||||
| American High-Income Trust (Class A shares) | 8.73 | % | 4.85 | % | 5.71 | % | 7.94 | % | ||||||||
| Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index* | 8.87 | 6.37 | 7.92 | — | ||||||||||||
| Lipper High Yield Funds Average† | 7.72 | 5.19 | 6.25 | 7.20 | ||||||||||||
| * | Source: Bloomberg Index Services Ltd. This market index did not exist prior to December 31, 1992. It is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
| † | Source: Thomson Reuters Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update available on our website. |
| American High-Income Trust | 1 |
issues during the mid-2014 to early-2016 downturn, so were able to capture some of the benefits from increasing commodity prices. With the improvement in energy and industrial commodities prices, many of these companies have begun to reduce their debt burdens, making them less vulnerable to future volatility in their businesses.
The fund was also helped by its wireless telecommunications holdings, which have benefitted from consolidation efforts, most notably the recent merger discussions between Sprint and T-Mobile.
There was strength and stability across most high yield sectors this past year, a notable change from the volatility experienced in the energy and commodities sectors in recent years. The exceptions were two relatively small sectors experiencing secular change in consumer buying patterns: retail and wireline telecommunications. Holdings in both sectors detracted from returns, and we are taking a cautious and selective approach to these companies going forward.
Looking ahead
The post-2008 economy of slow growth, restrained inflation and low interest rates has had a positive effect on high yield, and we see nothing on the near-term horizon to disrupt that benign environment. Short-term rates may rise, but we do not expect a return to pre-2008 interest rates anytime soon. Thus high income investments will continue to be, in our view, relatively attractive.
High yield fundamentals and technical indicators, meanwhile, remain strong, with low defaults, restrained supply, and significant global liquidity creating ongoing demand. Thus we believe the fund remains on track to deliver on its long-term objective of generating high, sustainable income.
Investors who have maintained a long-term perspective have received attractive returns and a steady source of income. As of September 30, 2017, fund shareholders who reinvested dividends earned an average annual total return of 4.85% over five years and 5.71% over 10 years.
For the same time periods, investment-grade bonds (rated BBB/Baa and above), by contrast, returned 2.06% over five years and 4.27% over 10 years, as measured by the Bloomberg Barclays U.S. Aggregate Index, which is unmanaged and has no expenses.
As always, we appreciate your continued support and long-term investment perspective.
Sincerely,
David C. Barclay
President
David A. Daigle
President-Elect
November 10, 2017
For current information about the fund, visit americanfunds.com.
Why your annual report has a different look
You have probably noticed that this annual report doesn’t look like the glossier reports of the past. After surveying a large, representative sample of our investors, we have decided to make a few key changes to these documents and have adjusted the look and feel of our reports (e.g., paper stock and design standards) to reflect the prevailing industry norm. These changes will reduce costs and the amount of paper we consume.
You also told us that we should be considering ways to deliver the valuable perspective of our investment professionals to you digitally. We are in the process of building our digital investor education content on our website, which will provide a platform for investment professionals to communicate with investors using the channels that you access more often.
If you have not already done so, you can elect to receive your annual reports electronically. Once you do, you will receive an email notification as soon as the documents are available. To learn more, visit americanfunds.com/gopaperless. ■
The strength of American Funds is a highly collaborative management style that relies on the collective talents of our associates and not on an individual. The value of that approach is apparent today, as David Barclay steps down after 27 years as portfolio manager and/or president of the fund. His duties will be transitioned over the next six months to David Daigle, who has worked with the fund for 23 years, 14 as a portfolio manager. Shannon Ward, with 25 years of investment industry experience, will be named as a new portfolio manager. We take this opportunity to thank David Barclay for his many years of leadership and service.
Portfolio manager years of experience as of December 1, 2017.
| 2 | American High-Income Trust |
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, 2017, the end of its latest fiscal year. As you can see, that $10,000 grew to $92,504 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
| 1 | As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. |
| 2 | The maximum initial sales charge was 4.75% prior to January 10, 2000. |
| 3 | The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
| 4 | Source: Bloomberg Index Services Ltd. From February 19, 1988, through December 31, 1992, the Credit Suisse High Yield Index was used because the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index did not yet exist. Since January 1, 1993, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index has been used. |
| 5 | Source: Thomson Reuters Lipper. Results of the Lipper High Yield Funds Average do not reflect any sales charges. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
| 6 | Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics. |
| 7 | For the period February 19, 1988, commencement of operations, through September 30, 1988. |
Past results are not predictive of results for 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, 2017)*
| 1 year | 5 years | 10 years | ||||
| Class A shares | 4.62% | 4.05% | 5.30% |
* Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.
The total annual fund operating expense ratio is 0.69% for Class A shares as of the prospectus dated December 1, 2017 (unaudited). The expense ratio is restated to reflect current fees.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
| American High-Income Trust | 3 |
Summary investment portfolio September 30, 2017
| Portfolio by type of security | Percent of net assets |
| Bonds, notes & other debt instruments 93.14% | Principal amount (000) | Value (000) | ||||||
| Corporate bonds & notes 91.84% | ||||||||
| Energy 16.63% | ||||||||
| Blackstone CQP Holdco LP, 6.00% 20211,2 | $ | 18,400 | $ | 18,078 | ||||
| Blackstone CQP Holdco LP, 6.50% 20211,2 | 161,000 | 163,415 | ||||||
| Cheniere Energy, Inc. 5.88%–7.00% 2024–2025 | 18,180 | 20,108 | ||||||
| Chesapeake Energy Corp. 4.55%–8.00% 2019–20271,3 | 142,696 | 142,650 | ||||||
| Chesapeake Energy Corp. 8.00% 20251 | 62,350 | 63,129 | ||||||
| Chesapeake Energy Corp., Term Loan, (3-month USD-LIBOR + 7.50%) 8.814% 20213,4,5 | 21,850 | 23,564 | ||||||
| CONSOL Energy Inc. 5.875% 2022 | 96,555 | 98,003 | ||||||
| QGOG Constellation SA 9.50% 20241,5,6 | 90,420 | 69,623 | ||||||
| Sabine Pass Liquefaction, LLC 5.63% 2021–2025 | 11,205 | 12,187 | ||||||
| Southwestern Energy Co. 4.10% 2022 | 71,858 | 69,702 | ||||||
| Teekay Corp. 8.50% 2020 | 93,660 | 95,533 | ||||||
| Ultra Petroleum Corp. 6.875% 20221 | 63,325 | 64,671 | ||||||
| Other securities | 2,044,206 | |||||||
| 2,884,869 | ||||||||
| Consumer discretionary 12.47% | ||||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20261 | 74,575 | 78,490 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 20271 | 77,090 | 78,343 | ||||||
| CCO Holdings LLC and CCO Holdings Capital Corp. 4.91%–5.88% 2024–20261 | 54,400 | 57,084 | ||||||
| Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 171,396 | 169,896 | ||||||
| Petsmart, Inc. 7.125% 20231 | 122,584 | 95,959 | ||||||
| Petsmart, Inc. 5.88%–8.88% 20251 | 119,835 | 100,597 | ||||||
| Petsmart, Inc., Term Loan B-2, (3-month USD-LIBOR + 3.00%) 4.24% 20223,4,5 | 29,933 | 25,486 | ||||||
| Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 67,505 | 69,530 | ||||||
| Other securities | 1,487,509 | |||||||
| 2,162,894 | ||||||||
| Health care 12.10% | ||||||||
| Centene Corp. 4.75% 2022 | 75,925 | 79,626 | ||||||
| Centene Corp. 4.75%–6.13% 2021–2025 | 111,110 | 117,111 | ||||||
| Kinetic Concepts, Inc. 12.50% 20211 | 93,885 | 104,916 | ||||||
| Molina Healthcare, Inc. 5.375% 2022 | 102,136 | 105,772 | ||||||
| Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)3,4,5,6,7,8 | 68,239 | 64,218 | ||||||
| Tenet Healthcare Corp. 4.38%–8.13% 2021–20251 | 137,036 | 135,904 | ||||||
| Tenet Healthcare Corp., First Lien, 6.00% 2020 | 89,965 | 96,102 | ||||||
| Tenet Healthcare Corp., First Lien 4.50%–4.75% 2020–2021 | 45,740 | 47,045 | ||||||
| Valeant Pharmaceuticals International, Inc. 6.375% 20201 | 145,428 | 145,928 | ||||||
| Valeant Pharmaceuticals International, Inc. 5.875% 20231 | 76,260 | 67,585 | ||||||
| Valeant Pharmaceuticals International, Inc. 6.125% 20251 | 106,553 | 93,900 | ||||||
| Valeant Pharmaceuticals International, Inc. 5.38%–7.50% 2020–20241 | 156,455 | 158,921 | ||||||
| Other securities | 881,714 | |||||||
| 2,098,742 | ||||||||
| 4 | American High-Income Trust |
| Principal amount (000) | Value (000) | |||||||
| Materials 11.73% | ||||||||
| ArcelorMittal 7.25% 2041 | $ | 54,985 | $ | 65,363 | ||||
| Cliffs Natural Resources Inc. 5.75% 20251 | 163,685 | 157,751 | ||||||
| Cliffs Natural Resources Inc. 6.25% 2040 | 25,278 | 21,218 | ||||||
| Cliffs Natural Resources Inc. 4.80%–4.88% 2020–2021 | 7,720 | 7,418 | ||||||
| First Quantum Minerals Ltd. 7.00% 20211 | 122,528 | 126,663 | ||||||
| First Quantum Minerals Ltd. 7.50% 20251 | 101,500 | 104,164 | ||||||
| First Quantum Minerals Ltd. 7.25% 2022–20231 | 49,825 | 51,477 | ||||||
| FMG Resources 9.75% 20221 | 57,240 | 64,510 | ||||||
| Ryerson Inc. 11.00% 20221 | 65,826 | 73,890 | ||||||
| Other securities | 1,361,948 | |||||||
| 2,034,402 | ||||||||
| Telecommunication services 9.93% | ||||||||
| Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20201 | 63,088 | 64,586 | ||||||
| Frontier Communications Corp. 10.50% 2022 | 113,610 | 99,409 | ||||||
| Frontier Communications Corp. 11.00% 2025 | 127,387 | 108,916 | ||||||
| Frontier Communications Corp. 7.63%–9.25% 2020–2024 | 90,948 | 84,328 | ||||||
| Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 9.97% 2020 (100% PIK)3,4,5,6 | 118,290 | 111,291 | ||||||
| MetroPCS Wireless, Inc. 6.625% 2023 | 37,760 | 39,838 | ||||||
| SoftBank Group Corp. 4.50% 20201 | 66,575 | 68,850 | ||||||
| Sprint Nextel Corp. 7.00%–9.00% 2018–20241 | 120,810 | 136,556 | ||||||
| Sprint Corp. 11.50% 2021 | 75,355 | 96,158 | ||||||
| Sprint Corp. 6.875% 2028 | 88,575 | 99,425 | ||||||
| T-Mobile US, Inc. 6.375% 2025 | 28,025 | 30,245 | ||||||
| T-Mobile US, Inc. 6.50% 2026 | 90,495 | 100,110 | ||||||
| Wind Acquisition SA 7.375% 20211 | 92,350 | 96,102 | ||||||
| Other securities | 586,116 | |||||||
| 1,721,930 | ||||||||
| Industrials 9.71% | ||||||||
| Associated Materials, LLC 9.00% 20241 | 84,935 | 92,473 | ||||||
| Corporate Risk Holdings LLC 9.50% 20191,7 | 137,693 | 146,643 | ||||||
| Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)1,6,7,8 | 13,361 | 14,296 | ||||||
| DAE Aviation Holdings, Inc. 10.00% 20231 | 115,815 | 128,844 | ||||||
| Deck Chassis Acquisition Inc. 10.00% 20231 | 69,260 | 78,091 | ||||||
| Other securities | 1,223,898 | |||||||
| 1,684,245 | ||||||||
| Information technology 7.39% | ||||||||
| First Data Corp. 7.00% 20231 | 71,500 | 76,526 | ||||||
| Gogo Inc. 12.50% 20221 | 91,200 | 104,196 | ||||||
| Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.561% 20243,4,5 | 92,910 | 96,092 | ||||||
| Unisys Corp. 10.75% 20221 | 76,500 | 85,106 | ||||||
| Other securities | 921,037 | |||||||
| 1,282,957 | ||||||||
| Utilities 4.23% | ||||||||
| AES Corp. 7.375% 2021 | 72,601 | 83,317 | ||||||
| AES Corp. 4.88%–8.00% 2020–20271 | 135,272 | 142,675 | ||||||
| IPALCO Enterprises, Inc. 3.70% 20241 | 1,850 | 1,856 | ||||||
| Other securities | 505,974 | |||||||
| 733,822 | ||||||||
| Financials 3.06% | ||||||||
| CIT Group Inc. 3.875% 2019 | 66,435 | 67,847 | ||||||
| Other securities | 463,346 | |||||||
| 531,193 | ||||||||
| Real estate 2.45% | ||||||||
| Howard Hughes Corp. 5.375% 20251 | 81,225 | 83,053 | ||||||
| Other securities | 342,817 | |||||||
| 425,870 | ||||||||
| American High-Income Trust | 5 |
| Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
| Corporate bonds & notes (continued) | ||||||||
| Consumer staples 2.14% | ||||||||
| BJ’s Wholesale Club, Term Loan, (3-month USD-LIBOR + 7.50%) 8.74% 20253,4,5 | $ | 68,415 | $ | 65,678 | ||||
| Other securities | 306,414 | |||||||
| 372,092 | ||||||||
| Total corporate bonds & notes | 15,933,016 | |||||||
| U.S. Treasury bonds & notes 1.07% | ||||||||
| U.S. Treasury 1.07% | ||||||||
| U.S. Treasury 1.50% 2020 | 100,000 | 99,785 | ||||||
| U.S. Treasury 1.13%–6.25% 2019–20239 | 85,000 | 86,110 | ||||||
| 185,895 | ||||||||
| Other bonds & notes 0.23% | ||||||||
| Other securities | 38,872 | |||||||
| Total bonds, notes & other debt instruments (cost: $15,956,106,000) | 16,157,783 | |||||||
| Convertible bonds 0.31% | ||||||||
| Other 0.17% | ||||||||
| Other securities | 28,114 | |||||||
| Miscellaneous 0.14% | ||||||||
| Other convertible bonds in initial period of acquisition | 25,124 | |||||||
| Total convertible bonds (cost: $52,283,000) | 53,238 | |||||||
| Convertible stocks 0.79% | Shares | |||||||
| Energy 0.04% | ||||||||
| Chesapeake Energy Corporation 5.75% convertible preferred | 9,000 | 5,670 | ||||||
| Other securities | 1,212 | |||||||
| 6,882 | ||||||||
| Telecommunication services 0.01% | ||||||||
| Frontier Communications Corp., Series A, convertible preferred | 70,000 | 1,347 | ||||||
| Other 0.28% | ||||||||
| Other securities | 48,304 | |||||||
| Miscellaneous 0.46% | ||||||||
| Other convertible stocks in initial period of acquisition | 80,933 | |||||||
| Total convertible stocks (cost: $167,724,000) | 137,466 | |||||||
| Common stocks 1.05% | ||||||||
| Information technology 0.24% | ||||||||
| Corporate Risk Holdings I, Inc.2,7,8,10 | 2,380,355 | 41,632 | ||||||
| Other 0.65% | ||||||||
| Other securities | 113,011 | |||||||
| Miscellaneous 0.16% | ||||||||
| Other common stocks in initial period of acquisition | 26,667 | |||||||
| Total common stocks (cost: $364,440,000) | 181,310 |
| 6 | American High-Income Trust |
| Rights & warrants 0.00% | Shares | Value (000) | ||||||
| Other 0.00% | ||||||||
| Other securities | $ | 817 | ||||||
| Miscellaneous 0.00% | ||||||||
| Other rights & warrants in initial period of acquisition | — | |||||||
| Total rights & warrants (cost: $1,341,000) | 817 | |||||||
| Short-term securities 3.87% | Principal amount (000) | |||||||
| Apple Inc. 1.18%–1.20% due 10/20/2017–12/12/20171 | $ | 96,000 | 95,887 | |||||
| Coca-Cola Co. 1.24%–1.27% due 1/17/2018–1/24/20181 | 132,500 | 131,979 | ||||||
| Johnson & Johnson 1.10% due 10/5/2017–10/17/20171 | 115,300 | 115,250 | ||||||
| U.S. Treasury Bills 1.02% due 11/16/2017 | 100,000 | 99,881 | ||||||
| Other securities | 228,890 | |||||||
| Total short-term securities (cost: $671,901,000) | 671,887 | |||||||
| Total investment securities 99.16% (cost: $17,213,795,000) | 17,202,501 | |||||||
| Other assets less liabilities 0.84% | 146,497 | |||||||
| Net assets 100.00% | $ | 17,348,998 | ||||||
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Swap contracts
Interest rate swaps
| Receive | Pay | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 9/30/2017 (000) | ||||||||||||||||||
| 3-month USD-LIBOR | 2.0745% | 11/21/2026 | $ | 135,000 | $ | 2,001 | $ | — | $ | 2,001 | ||||||||||||||
| 3-month USD-LIBOR | 2.2825% | 4/13/2027 | 87,100 | (113 | ) | — | (113 | ) | ||||||||||||||||
| 2.288% | 3-month USD-LIBOR | 10/2/2027 | 87,200 | (11 | ) | — | (11 | ) | ||||||||||||||||
| 3-month USD-LIBOR | 2.375% | 11/18/2046 | 15,000 | 512 | — | 512 | ||||||||||||||||||
| 3-month USD-LIBOR | 2.587% | 12/16/2046 | 10,000 | (118 | ) | — | (118 | ) | ||||||||||||||||
| $ | — | $ | 2,271 | |||||||||||||||||||||
| American High-Income Trust | 7 |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
| Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront payments (000) | Unrealized depreciation at 9/30/2017 (000) | ||||||||||||||||||
| CDX.NA.HY.28 | 5.00%/Quarterly | 6/20/2022 | $ | 613,800 | $ | (47,463 | ) | $ | (43,620 | ) | $ | (3,843 | ) | |||||||||||
| CDX.NA.HY.29 | 5.00%/Quarterly | 12/20/2022 | 178,000 | (13,972 | ) | (13,394 | ) | (578 | ) | |||||||||||||||
| $ | (57,014 | ) | $ | (4,421 | ) | |||||||||||||||||||
Centrally cleared credit default swaps on credit indices — sell protection
| Receive/ Payment frequency | Pay | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront receipts (000) | Unrealized (depreciation) appreciation at 9/30/2017 (000) | ||||||||||||||||||
| 5.00%/Quarterly | CDX.NA.HY.21 | 12/20/2018 | $ | 17,100 | $ | 534 | $ | 1,026 | $ | (492 | ) | |||||||||||||
| 5.00%/Quarterly | CDX.NA.HY.22 | 6/20/2019 | 27,550 | 1,259 | 2,145 | (886 | ) | |||||||||||||||||
| 5.00%/Quarterly | CDX.NA.HY.25 | 12/20/2020 | 31,360 | 2,038 | 1,651 | 387 | ||||||||||||||||||
| 5.00%/Quarterly | CDX.NA.HY.27 | 12/20/2021 | 99,000 | 7,810 | 7,915 | (105 | ) | |||||||||||||||||
| $ | 12,737 | $ | (1,096 | ) | ||||||||||||||||||||
Investments in affiliates
A company is 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. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on such holdings and related transactions during the year ended September 30, 2017, appear below.
| Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Net realized gain (loss) (000) | Net unrealized (depreciation) appreciation (000) | Dividend or interest income (000) | Value of affiliates at 9/30/2017 (000) | |||||||||||||||||||||||||
| Bonds, notes & other debt instruments 1.99% | ||||||||||||||||||||||||||||||||
| Health care 0.62% | ||||||||||||||||||||||||||||||||
| Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)3,4,5,6,8 | $ | 61,148,542 | $ | 7,090,033 | — | $ | 68,238,575 | $ | — | $ | (195 | ) | $ | 8,082 | $ | 62,481 | ||||||||||||||||
| Rotech Healthcare Inc., Term Loan A, (3-month USD-LIBOR + 4.25%) 5.583% 20183,4,5,8 | $ | 25,123,000 | — | $ | 259,000 | $ | 24,864,000 | — | 1 | 1,403 | 24,740 | |||||||||||||||||||||
| Rotech Healthcare Inc., Term Loan B, (3-month USD-LIBOR + 8.75%) 10.083% 20193,4,5,8 | $ | 20,825,000 | — | — | $ | 20,825,000 | — | — | 2,112 | 20,721 | ||||||||||||||||||||||
| 107,942 | ||||||||||||||||||||||||||||||||
| Industrials 1.20% | ||||||||||||||||||||||||||||||||
| Corporate Risk Holdings LLC 9.50% 20191 | $ | 137,693,000 | — | — | $ | 137,693,000 | — | 13,068 | 13,094 | 146,643 | ||||||||||||||||||||||
| Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)1,6,8 | $ | 14,705,290 | $ | 2,052,215 | $ | 3,397,000 | $ | 13,360,505 | 252 | (20 | ) | 2,334 | 14,296 | |||||||||||||||||||
| CEVA Group PLC 9.00% 20211 | $ | 14,675,000 | — | — | $ | 14,675,000 | — | 4,072 | 1,321 | 13,611 | ||||||||||||||||||||||
| CEVA Logistics U.S. Holdings Inc., Term Loan B, (3-month USD-LIBOR + 5.50%) 6.814% 20213,4,5 | $ | 18,875,543 | — | $ | 5,898,030 | $ | 12,977,513 | (971 | ) | 3,213 | 1,012 | 12,588 | ||||||||||||||||||||
| 8 | American High-Income Trust |
| Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Net realized gain (loss) (000) | Net unrealized (depreciation) appreciation (000) | Dividend or interest income (000) | Value of affiliates at 9/30/2017 (000) | |||||||||||||||||||||||||
| CEVA Logistics Holdings BV, Term Loan, (3-month USD-LIBOR + 5.50%) 6.814% 20213,4,5 | $ | 13,689,256 | — | $ | 4,276,116 | $ | 9,413,140 | $ | (708 | ) | $ | 2,333 | $ | 751 | $ | 9,131 | ||||||||||||||||
| CEVA Group PLC, Apollo Global Securities LLC LOC, (3-month USD-LIBOR + 5.50%) 6.50% 20213,4,5 | $ | 13,311,084 | — | $ | 4,064,039 | $ | 9,247,045 | (679 | ) | 2,256 | 402 | 8,970 | ||||||||||||||||||||
| CEVA Logistics Canada, ULC, Term Loan, (3-month USD-LIBOR + 5.50%) 6.814% 20213,4,5 | $ | 2,361,937 | — | $ | 737,280 | $ | 1,624,657 | (121 | ) | 401 | 130 | 1,576 | ||||||||||||||||||||
| CEVA Group PLC 7.00% 20211 | $ | 1,400,000 | — | — | $ | 1,400,000 | — | 224 | 98 | 1,365 | ||||||||||||||||||||||
| 208,180 | ||||||||||||||||||||||||||||||||
| Energy 0.17% | ||||||||||||||||||||||||||||||||
| Ascent Resources- Marcellus LLC 10.00% 20221 | — | $ | 26,600,000 | — | $ | 26,600,000 | — | 1,864 | 1,245 | 28,662 | ||||||||||||||||||||||
| Total bonds, notes & other debt instruments | 344,784 | |||||||||||||||||||||||||||||||
| Convertible stocks 0.24% | ||||||||||||||||||||||||||||||||
| Industrials 0.24% | ||||||||||||||||||||||||||||||||
| CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.359%2,8 | 47,121 | — | — | 47,121 | — | 8,717 | — | 32,278 | ||||||||||||||||||||||||
| CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.359%2,8 | 21,062 | — | — | 21,062 | — | 2,896 | — | 10,531 | ||||||||||||||||||||||||
| 42,809 | ||||||||||||||||||||||||||||||||
| Common stocks 0.66% | ||||||||||||||||||||||||||||||||
| Information technology 0.24% | ||||||||||||||||||||||||||||||||
| Corporate Risk Holdings I, Inc.2,8,10 | 2,380,355 | — | — | 2,380,355 | — | 21,495 | — | 41,632 | ||||||||||||||||||||||||
| Corporate Risk Holdings Corp.2,8,10 | 12,035 | — | — | 12,035 | — | — | — | — | ||||||||||||||||||||||||
| 41,632 | ||||||||||||||||||||||||||||||||
| Energy 0.20% | ||||||||||||||||||||||||||||||||
| White Star NR Corp2,8,10 | 24,665,117 | — | — | 24,665,117 | — | (3,206 | ) | — | 17,759 | |||||||||||||||||||||||
| Ascent Resources NR Corp.2,8,10 | 71,159,269 | 19,373,235 | — | 90,532,504 | — | 12,862 | — | 17,201 | ||||||||||||||||||||||||
| 34,960 | ||||||||||||||||||||||||||||||||
| Health care 0.02% | ||||||||||||||||||||||||||||||||
| Rotech Healthcare Inc.2,8,10 | 1,916,276 | — | — | 1,916,276 | — | 1,916 | — | 3,833 | ||||||||||||||||||||||||
| Industrials 0.17% | ||||||||||||||||||||||||||||||||
| CEVA Group PLC2,8,10 | 59,168 | — | — | 59,168 | — | 8,136 | — | 29,584 | ||||||||||||||||||||||||
| Telecommunication services 0.03% | ||||||||||||||||||||||||||||||||
| NII Holdings, Inc.10 | 17,776,845 | — | 8,748,323 | 9,028,522 | (122,980 | ) | 87,116 | — | 4,153 | |||||||||||||||||||||||
| Total common stocks | 114,162 | |||||||||||||||||||||||||||||||
| Total 2.89% | $ | (125,207 | ) | $ | 167,149 | $ | 31,984 | $ | 501,755 | |||||||||||||||||||||||
| American High-Income Trust | 9 |
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 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $8,791,084,000, which represented 50.67% of the net assets of the fund. |
| 2 | Acquired through a private placement 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. |
| 3 | Coupon rate may change periodically. |
| 4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,141,109,000, which represented 6.58% of the net assets of the fund. |
| 5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
| 6 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
| 7 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
| 8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $344,369,000, which represented 1.98% of the net assets of the fund. |
| 9 | A portion of this security was pledged as collateral. The total value of pledged collateral was $36,961,000, which represented .21% of the net assets of the fund. |
| 10 | Security did not produce income during the last 12 months. |
| Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | ||||||||||
| Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $ | 161,000 | $ | 163,415 | .94 | % | |||||||
| Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 18,400 | 18,078 | .10 | ||||||||||
| CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.304% | 5/2/2013 | 47,777 | 32,278 | .19 | ||||||||||
| CEVA Group PLC | 5/2/2013 | 57,165 | 29,584 | .17 | ||||||||||
| CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.304% | 5/2/2013 | 20,349 | 10,531 | .06 | ||||||||||
| Corporate Risk Holdings I, Inc. | 8/31/2015 | 26,446 | 41,632 | .24 | ||||||||||
| Corporate Risk Holdings Corp. | 8/31/2015 | — | — | — | ||||||||||
| White Star NR Corp. | 6/30/2016 | 16,491 | 17,759 | .10 | ||||||||||
| Ascent Resources NR Corp. | 11/15/2016 | 4,340 | 17,201 | .10 | ||||||||||
| Rotech Healthcare Inc. | 9/26/2013 | 41,128 | 3,833 | .02 | ||||||||||
| Other private placement securities | 12/31/2012-11/26/2014 | — | — | — | ||||||||||
| Total private placement securities | $ | 393,096 | $ | 334,311 | 1.92 | % | ||||||||
Key to abbreviation and symbol
LIBOR = London Interbank Offered Rate
LOC = Letter of Credit
USD/$ = U.S. Dollars
See Notes to Financial Statements
| 10 | American High-Income Trust |
Financial statements
| Statement of assets and liabilities at September 30, 2017 | (dollars in thousands) |
| Assets: | ||||||||
| Investment securities, at value: | ||||||||
| Unaffiliated issuers (cost: $16,544,376) | $ | 16,746,609 | ||||||
| Affiliated issuers (cost: $669,419) | 455,892 | $ | 17,202,501 | |||||
| Cash | 6,221 | |||||||
| Cash denominated in currencies other than U.S. dollars (cost: $1,084) | 1,081 | |||||||
| Receivables for: | ||||||||
| Sales of investments | 134,916 | |||||||
| Sales of fund’s shares | 18,987 | |||||||
| Variation margin on swap contracts | 622 | |||||||
| Dividends and interest | 286,688 | |||||||
| Other | 337 | 441,550 | ||||||
| 17,651,353 | ||||||||
| Liabilities: | ||||||||
| Payables for: | ||||||||
| Purchases of investments | 245,164 | |||||||
| Repurchases of fund’s shares | 37,913 | |||||||
| Dividends on fund’s shares | 4,126 | |||||||
| Investment advisory services | 3,961 | |||||||
| Services provided by related parties | 4,151 | |||||||
| Trustees’ deferred compensation | 317 | |||||||
| Variation margin on swap contracts | 2,589 | |||||||
| Other | 4,134 | 302,355 | ||||||
| Net assets at September 30, 2017 | $ | 17,348,998 | ||||||
| Net assets consist of: | ||||||||
| Capital paid in on shares of beneficial interest | $ | 19,049,420 | ||||||
| Undistributed net investment income | 9,018 | |||||||
| Accumulated net realized loss | (1,695,001 | ) | ||||||
| Net unrealized depreciation | (14,439 | ) | ||||||
| Net assets at September 30, 2017 | $ | 17,348,998 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,655,055 total shares outstanding)
| Net assets | Shares outstanding | Net asset value per share | ||||||||||
| Class A | $ | 11,665,946 | 1,112,904 | $ | 10.48 | |||||||
| Class C | 760,312 | 72,532 | 10.48 | |||||||||
| Class T | 10 | 1 | 10.48 | |||||||||
| Class F-1 | 611,447 | 58,331 | 10.48 | |||||||||
| Class F-2 | 1,102,705 | 105,196 | 10.48 | |||||||||
| Class F-3 | 353,643 | 33,737 | 10.48 | |||||||||
| Class 529-A | 319,746 | 30,503 | 10.48 | |||||||||
| Class 529-C | 99,816 | 9,522 | 10.48 | |||||||||
| Class 529-E | 17,391 | 1,659 | 10.48 | |||||||||
| Class 529-T | 10 | 1 | 10.48 | |||||||||
| Class 529-F-1 | 27,617 | 2,635 | 10.48 | |||||||||
| Class R-1 | 12,194 | 1,163 | 10.48 | |||||||||
| Class R-2 | 165,677 | 15,805 | 10.48 | |||||||||
| Class R-2E | 5,624 | 537 | 10.48 | |||||||||
| Class R-3 | 189,849 | 18,111 | 10.48 | |||||||||
| Class R-4 | 158,536 | 15,124 | 10.48 | |||||||||
| Class R-5E | 19 | 2 | 10.48 | |||||||||
| Class R-5 | 82,393 | 7,860 | 10.48 | |||||||||
| Class R-6 | 1,776,063 | 169,432 | 10.48 | |||||||||
See Notes to Financial Statements
| American High-Income Trust | 11 |
| Statement of operations for the year ended September 30, 2017 | (dollars in thousands) |
| Investment income: | ||||||||
| Income: | ||||||||
| Interest (net of non-U.S. taxes of $12; also includes $30,739 from affiliates) | $ | 1,098,282 | ||||||
| Dividends (net of non-U.S. taxes of $21) | 10,272 | $ | 1,108,554 | |||||
| Fees and expenses*: | ||||||||
| Investment advisory services | 48,050 | |||||||
| Distribution services | 42,886 | |||||||
| Transfer agent services | 21,351 | |||||||
| Administrative services | 3,842 | |||||||
| Reports to shareholders | 1,030 | |||||||
| Registration statement and prospectus | 951 | |||||||
| Trustees’ compensation | 151 | |||||||
| Auditing and legal | 218 | |||||||
| Custodian | 66 | |||||||
| Other | 649 | |||||||
| Total fees and expenses before reimbursement | 119,194 | |||||||
| Less transfer agent services reimbursement | — | † | ||||||
| Total fees and expenses after reimbursement | 119,194 | |||||||
| Net investment income | 989,360 | |||||||
| Net realized gain and unrealized appreciation: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments (net of non-U.S. taxes of $2): | ||||||||
| Unaffiliated issuers | 226,832 | |||||||
| Affiliated issuers | (125,207 | ) | ||||||
| Swap contracts | (2,688 | ) | ||||||
| Currency transactions | (571 | ) | 98,366 | |||||
| Net unrealized appreciation (depreciation) on: | ||||||||
| Investments (net of non-U.S. taxes of $58): | ||||||||
| Unaffiliated issuers | 202,517 | |||||||
| Affiliated issuers | 152,423 | |||||||
| Swap contracts | (8,957 | ) | ||||||
| Currency translations | 26 | 346,009 | ||||||
| Net realized gain and unrealized appreciation | 444,375 | |||||||
| Net increase in net assets resulting from operations | $ | 1,433,735 |
| * | Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. |
| † | Amount less than one thousand. |
See Notes to Financial Statements
| 12 | American High-Income Trust |
| Statements of changes in net assets | |
| (dollars in thousands) | |
| Year ended September 30 | ||||||||
| 2017 | 2016 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 989,360 | $ | 1,021,261 | ||||
| Net realized gain (loss) | 98,366 | (793,582 | ) | |||||
| Net unrealized appreciation | 346,009 | 1,327,945 | ||||||
| Net increase in net assets resulting from operations | 1,433,735 | 1,555,624 | ||||||
| Dividends paid or accrued to shareholders from net investment income | (938,100 | ) | (1,007,578 | ) | ||||
| Net capital share transactions | (5,917 | ) | (876,110 | ) | ||||
| Total increase (decrease) in net assets | 489,718 | (328,064 | ) | |||||
| Net assets: | ||||||||
| Beginning of year | 16,859,280 | 17,187,344 | ||||||
| End of year (including undistributed and distributions in excess of net investment income: $9,018 and $(52,699), respectively) | $ | 17,348,998 | $ | 16,859,280 | ||||
See Notes to Financial Statements
| American High-Income Trust | 13 |
Notes to financial statements
1. 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 to provide a high level of current income. Its secondary investment objective is capital appreciation.
The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
| 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 | ||||
| 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 T and 529-T† | Up to 2.50% | None | None | ||||
| Classes F-1, F-2, F-3 and 529-F-1 | None | None | None | ||||
| Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 | None | None | None |
| * | 18 months for shares purchased on or after August 14, 2017. |
| † | Class T and 529-T shares are not available for purchase. |
Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the 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, transfer agent and administrative services, are charged directly to the respective share class.
| 14 | American High-Income Trust |
Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions 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 supplied by one or more pricing vendors 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. 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 in the fund’s statement of operations. 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.
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally 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 on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
| Fixed-income class | Examples of standard inputs |
| All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
| Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
| Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
| Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
| Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange
| American High-Income Trust | 15 |
Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of September 30, 2017 (dollars in thousands):
| Investment securities | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Bonds, notes & other debt instruments: | ||||||||||||||||
| Corporate bonds & notes | $ | — | $ | 15,809,041 | $ | 123,975 | $ | 15,933,016 | ||||||||
| U.S. Treasury bonds & notes | — | 185,895 | — | 185,895 | ||||||||||||
| Other bonds & notes | — | 38,872 | — | 38,872 | ||||||||||||
| Convertible bonds | — | 53,238 | — | 53,238 | ||||||||||||
| Convertible stocks | 41,099 | 48,304 | 48,063 | 137,466 | ||||||||||||
| Common stocks | 51,788 | 49,070 | 80,452 | 181,310 | ||||||||||||
| Rights & warrants | 817 | — | — | 817 | ||||||||||||
| Short-term securities | — | 671,887 | — | 671,887 | ||||||||||||
| Total | $ | 93,704 | $ | 16,856,307 | $ | 252,490 | $ | 17,202,501 | ||||||||
| 16 | American High-Income Trust |
| Other investments1 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Unrealized appreciation on interest rate swaps | $ | — | $ | 2,513 | $ | — | $ | 2,513 | ||||||||
| Unrealized appreciation on credit default swaps | — | 387 | — | 387 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Unrealized depreciation on interest rate swaps | — | (242 | ) | — | (242 | ) | ||||||||||
| Unrealized depreciation on credit default swaps | — | (5,904 | ) | — | (5,904 | ) | ||||||||||
| Total | $ | — | $ | (3,246 | ) | $ | — | $ | (3,246 | ) | ||||||
| 1 | Interest rate swaps and credit default swaps are not included in the investment portfolio. |
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the year ended September 30, 2017 (dollars in thousands):
| Beginning | Transfers | Net | Transfers | Ending | ||||||||||||||||||||||||||||
| value at | into | realized | Unrealized | out of | value at | |||||||||||||||||||||||||||
| 10/1/2016 | Level 32 | Purchases | Sales | gain3 | appreciation3 | Level 32 | 9/30/2017 | |||||||||||||||||||||||||
| Investment securities | $ | 176,678 | $ | 992 | $ | 55,097 | $ | (3,971 | ) | $ | 231 | $ | 41,041 | $ | (17,578 | ) | $ | 252,490 | ||||||||||||||
| Net unrealized appreciation during the period on Level 3 investment securities held at September 30, 20173 | $ | 41,040 | ||||||||||||||||||||||||||||||
| 2 | Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
| 3 | Net realized gain and unrealized appreciation are included in the related amounts on investments in the statement of operations. |
Unobservable inputs — Valuation of the fund’s Level 3 securities is based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):
| Impact to | ||||||||||||
| valuation from | ||||||||||||
| Value at | Valuation | Unobservable | an increase in | |||||||||
| 9/30/2017 | techniques | input(s) | Range | input* | ||||||||
| Corporate bonds & notes | $ | 123,975 | Yield analysis | Yield to call risk premium | 75-700 bps | Decrease | ||||||
| Inputs to market comparables and recent transaction price | Weight ascribed to market comparables | 50% | N/A | |||||||||
| Weight ascribed to recent transaction price | 50% | N/A | ||||||||||
| Common stocks | 80,452 | Market comparable companies | EBITDA multiple | 5.5x -10.1x | Increase | |||||||
| DLOM | 26% | Decrease | ||||||||||
| Recent market information | Market index | 15% | Decrease | |||||||||
| Recent transaction price | N/A | N/A | N/A | |||||||||
| Covertible stocks | 48,063 | Market comparable companies | EBITDA multiple | 12.6x | Increase | |||||||
| $ | 252,490 | |||||||||||
| * | This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
Key to abbreviations
EBITDA = Earnings before income taxes, depreciation and amortization
DLOM = Discount for lack of marketability
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the securities held by the fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
| American High-Income Trust | 17 |
Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in debt instruments — The prices of, and the income generated by, bonds and other 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.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.
Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Liquidity risk — Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. Liquidity risk may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs.
Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult for the fund to buy or sell at an opportune time or price and may be difficult to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
| 18 | American High-Income Trust |
5. Certain investment techniques
Loan transactions — The fund has entered 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.
Interest rate swaps — The fund has entered into interest rate swap contracts, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The fund’s investment adviser uses interest rate swaps to seek to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the fund’s investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.
Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as “initial margin.” Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, the fund’s investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a “variation margin” based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in the fund’s statement of operations. The average month-end notional amount of interest rate swaps while held was $219,800,000.
Credit default swap indices — The fund has entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The fund’s investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.
CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI, represents a deterioration of the referenced indices’ credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When the fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.
Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as “initial margin.” Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.
On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a “variation margin” based on the increase or decrease in the value of the CDSI, and records variation margin in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in the fund’s statement of operations. The average month-end notional amount of credit default swaps while held was $488,411,000.
| American High-Income Trust | 19 |
The following tables present the financial statement impacts resulting from the fund’s use of interest rate swaps and credit default swaps as of, or for the year ended, September 30, 2017 (dollars in thousands):
| Assets | Liabilities | |||||||||||||
| Location on statement of | Location on statement of | |||||||||||||
| Contract | Risk type | assets and liabilities | Value | assets and liabilities | Value | |||||||||
| Interest rate swaps | Interest | Net unrealized appreciation* | $ | 2,513 | Net unrealized depreciation* | $ | 242 | |||||||
| Credit default swaps | Credit | Net unrealized appreciation* | 387 | Net unrealized depreciation* | 5,904 | |||||||||
| $ | 2,900 | $ | 6,146 | |||||||||||
| Net realized loss | Net unrealized appreciation (depreciation) | |||||||||||||
| Location on statement of | Location on statement of | |||||||||||||
| Contract | Risk type | operations | Value | operations | Value | |||||||||
| Interest rate swaps | Interest | Net realized loss on interest rate swaps | $ | (2,525 | ) | Net unrealized appreciation on interest rate swaps | $ | 2,271 | ||||||
| Credit default swaps | Credit | Net realized loss on credit default swaps | (163 | ) | Net unrealized depreciation on credit default swaps | (11,228 | ) | |||||||
| $ | (2,688 | ) | $ | (8,957 | ) | |||||||||
| * | Includes cumulative appreciation/depreciation on interest rate swaps and credit default swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities. |
Collateral — The fund participates in a collateral program due to its use of interest rate swaps and credit default swaps. For interest rate swaps and credit default swaps, the program calls for the fund to pledge highly liquid assets, such as cash or U.S. Treasury bills, as collateral for initial and variation margin by contract. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
6. 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, 2017, 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 2013, by state tax authorities for tax years before 2012 and by tax authorities outside the U.S. for tax years before 2014.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
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 different 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; deferred expenses; cost of investments sold; net capital losses and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
During the year ended September 30, 2017, the fund reclassified $20,000 from undistributed net investment income to capital paid in on shares of beneficial interest and $10,477,000 from accumulated net realized loss to undistributed net investment income to align financial reporting with tax reporting.
| 20 | American High-Income Trust |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after September 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
As of September 30, 2017, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):
| Undistributed ordinary income | $ | 17,657 | ||||||
| Capital loss carryforward*: | ||||||||
| No expiration | $ | (1,358,096 | ) | |||||
| Expiring 2018 | (209,244 | ) | (1,567,340 | ) | ||||
| Gross unrealized appreciation on investments | 571,022 | |||||||
| Gross unrealized depreciation on investments | (714,942 | ) | ||||||
| Net unrealized appreciation on investments | (143,920 | ) | ||||||
| Cost of investments | 17,387,452 |
| * | Reflects the utilization of capital loss carryforward of $91,738,000. The capital loss carryforward will be used to offset any capital gains realized by the fund in future years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):
| Year ended September 30 | ||||||||
| Share class | 2017 | 2016 | ||||||
| Class A | $ | 646,769 | $ | 707,118 | ||||
| Class B1 | 209 | 1,482 | ||||||
| Class C | 38,224 | 47,302 | ||||||
| Class T2 | — | 3 | ||||||
| Class F-1 | 34,711 | 39,110 | ||||||
| Class F-2 | 69,836 | 80,482 | ||||||
| Class F-34 | 8,168 | |||||||
| Class 529-A | 17,301 | 18,386 | ||||||
| Class 529-B1 | 11 | 99 | ||||||
| Class 529-C | 4,767 | 5,449 | ||||||
| Class 529-E | 918 | 984 | ||||||
| Class 529-T2 | — | 3 | ||||||
| Class 529-F-1 | 1,461 | 1,388 | ||||||
| Class R-1 | 690 | 915 | ||||||
| Class R-2 | 8,235 | 9,513 | ||||||
| Class R-2E | 228 | 93 | ||||||
| Class R-3 | 9,997 | 11,322 | ||||||
| Class R-4 | 8,677 | 10,237 | ||||||
| Class R-5E5 | 1 | — | 3 | |||||
| Class R-5 | 4,609 | 5,217 | ||||||
| Class R-6 | 83,288 | 68,481 | ||||||
| Total | $ | 938,100 | $ | 1,007,578 | ||||
| 1 | Class B and 529-B shares were fully liquidated on May 5, 2017. |
| 2 | Class T and 529-T shares began investment operations on April 7, 2017. |
| 3 | Amount less than one thousand. |
| 4 | Class F-3 shares began investment operations on January 27, 2017. |
| 5 | Class R-5E shares began investment operations on November 20, 2015. |
7. Fees and transactions with related parties
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net
| American High-Income Trust | 21 |
assets and decreasing to 0.132% on such assets in excess of $21 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing 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 $50,000,000. For the year ended September 30, 2017, the investment advisory services fee was $48,050,000, which was equivalent to an annualized rate of 0.281% 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 further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, R-5 and R-6 shares. 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 in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use 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.
| Share class | Currently approved limits | Plan limits | ||||||
| Class A | 0.30 | % | 0.30 | % | ||||
| Class 529-A | 0.30 | 0.50 | ||||||
| Classes C, 529-C and R-1 | 1.00 | 1.00 | ||||||
| Class R-2 | 0.75 | 1.00 | ||||||
| Class R-2E | 0.60 | 0.85 | ||||||
| Classes 529-E and R-3 | 0.50 | 0.75 | ||||||
| Classes T, F-1, 529-T, 529-F-1 and R-4 | 0.25 | 0.50 | ||||||
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of September 30, 2017, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, T, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, T, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.
529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the net assets invested in the Class 529 shares of the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.
| 22 | American High-Income Trust |
For the year ended September 30, 2017, class-specific expenses under the agreements were as follows (dollars in thousands):
| Distribution | Transfer agent | Administrative | 529 plan | ||||||||||||
| Share class | services | services | services | services | |||||||||||
| Class A | $28,527 | $16,270 | $1,178 | Not applicable | |||||||||||
| Class B1 | 43 | 8 | Not applicable | Not applicable | |||||||||||
| Class C | 8,113 | 1,145 | 407 | Not applicable | |||||||||||
| Class T2 | — | — | 3 | — | 3 | Not applicable | |||||||||
| Class F-1 | 1,590 | 846 | 319 | Not applicable | |||||||||||
| Class F-2 | Not applicable | 1,320 | 610 | Not applicable | |||||||||||
| Class F-34 | Not applicable | 10 | 70 | Not applicable | |||||||||||
| Class 529-A | 703 | 392 | 160 | $218 | |||||||||||
| Class 529-B1 | 2 | — | 3 | — | 3 | — | 3 | ||||||||
| Class 529-C | 1,007 | 135 | 51 | 70 | |||||||||||
| Class 529-E | 86 | 10 | 9 | 12 | |||||||||||
| Class 529-T2 | — | — | 3 | — | 3 | — | 3 | ||||||||
| Class 529-F-1 | — | 32 | 13 | 18 | |||||||||||
| Class R-1 | 145 | 19 | 7 | Not applicable | |||||||||||
| Class R-2 | 1,295 | 655 | 87 | Not applicable | |||||||||||
| Class R-2E | 27 | 10 | 2 | Not applicable | |||||||||||
| Class R-3 | 955 | 298 | 96 | Not applicable | |||||||||||
| Class R-4 | 393 | 154 | 79 | Not applicable | |||||||||||
| Class R-5E | Not applicable | — | 3 | — | 3 | Not applicable | |||||||||
| Class R-5 | Not applicable | 41 | 40 | Not applicable | |||||||||||
| Class R-6 | Not applicable | 6 | 714 | Not applicable | |||||||||||
| Total class-specific expenses | $42,886 | $21,351 | $3,842 | $318 | |||||||||||
| 1 | Class B and 529-B shares were fully liquidated on May 5, 2017. |
| 2 | Class T and 529-T shares began investment operations on April 7, 2017. |
| 3 | Amount less than one thousand. |
| 4 | Class F-3 shares began investment operations on January 27, 2017. |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of 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 $151,000 in the fund’s statement of operations reflects $118,000 in current fees (either paid in cash or deferred) and a net increase of $33,000 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, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.
Security transactions with related funds — The fund may purchase from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.
Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended September 30, 2017.
8. Committed line of credit
The fund participates with other funds managed by CRMC (or funds managed by certain affiliates of CRMC) in a $1 billion credit facility (the “line of credit”) to be utilized for temporary purposes to support shareholder redemptions. The fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in the fund’s statement of operations. The fund did not borrow on this line of credit at any time during the year ended September 30, 2017.
| American High-Income Trust | 23 |
9. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
| Sales1 | dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
| Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| Year ended September 30, 2017 | ||||||||||||||||||||||||||||||||
| Class A | $ | 1,346,639 | 130,116 | $ | 609,729 | 58,772 | $ | (2,532,781 | ) | (244,818 | ) | $ | (576,413 | ) | (55,930 | ) | ||||||||||||||||
| Class B2 | 95 | 10 | 197 | 19 | (15,430 | ) | (1,498 | ) | (15,138 | ) | (1,469 | ) | ||||||||||||||||||||
| Class C | 96,605 | 9,336 | 35,833 | 3,456 | (267,660 | ) | (25,864 | ) | (135,222 | ) | (13,072 | ) | ||||||||||||||||||||
| Class T3 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
| Class F-1 | 217,125 | 21,013 | 33,382 | 3,217 | (300,076 | ) | (29,016 | ) | (49,569 | ) | (4,786 | ) | ||||||||||||||||||||
| Class F-2 | 909,005 | 87,951 | 65,927 | 6,353 | (1,077,473 | ) | (104,183 | ) | (102,541 | ) | (9,879 | ) | ||||||||||||||||||||
| Class F-34 | 397,708 | 38,169 | 7,623 | 729 | (53,874 | ) | (5,161 | ) | 351,457 | 33,737 | ||||||||||||||||||||||
| Class 529-A | 44,321 | 4,281 | 17,224 | 1,660 | (65,167 | ) | (6,290 | ) | (3,622 | ) | (349 | ) | ||||||||||||||||||||
| Class 529-B2 | 30 | 3 | 11 | 1 | (1,014 | ) | (99 | ) | (973 | ) | (95 | ) | ||||||||||||||||||||
| Class 529-C | 13,310 | 1,286 | 4,742 | 457 | (24,886 | ) | (2,403 | ) | (6,834 | ) | (660 | ) | ||||||||||||||||||||
| Class 529-E | 1,997 | 193 | 915 | 88 | (3,249 | ) | (313 | ) | (337 | ) | (32 | ) | ||||||||||||||||||||
| Class 529-T3 | 10 | 1 | — | 5 | — | 5 | — | — | 10 | 1 | ||||||||||||||||||||||
| Class 529-F-1 | 6,949 | 671 | 1,452 | 140 | (5,698 | ) | (550 | ) | 2,703 | 261 | ||||||||||||||||||||||
| Class R-1 | 2,645 | 256 | 682 | 66 | (7,930 | ) | (765 | ) | (4,603 | ) | (443 | ) | ||||||||||||||||||||
| Class R-2 | 42,026 | 4,062 | 8,108 | 782 | (73,782 | ) | (7,129 | ) | (23,648 | ) | (2,285 | ) | ||||||||||||||||||||
| Class R-2E | 3,148 | 305 | 227 | 22 | (796 | ) | (77 | ) | 2,579 | 250 | ||||||||||||||||||||||
| Class R-3 | 56,738 | 5,485 | 9,896 | 954 | (76,952 | ) | (7,433 | ) | (10,318 | ) | (994 | ) | ||||||||||||||||||||
| Class R-4 | 47,342 | 4,573 | 8,617 | 831 | (60,920 | ) | (5,894 | ) | (4,961 | ) | (490 | ) | ||||||||||||||||||||
| Class R-5E | 8 | 1 | — | 5 | — | 5 | — | 5 | — | 5 | 8 | 1 | ||||||||||||||||||||
| Class R-5 | 24,061 | 2,326 | 4,586 | 442 | (24,237 | ) | (2,344 | ) | 4,410 | 424 | ||||||||||||||||||||||
| Class R-6 | 726,263 | 69,982 | 81,360 | 7,833 | (240,538 | ) | (23,266 | ) | 567,085 | 54,549 | ||||||||||||||||||||||
| Total net increase (decrease) | $ | 3,936,035 | 380,021 | $ | 890,511 | 85,822 | $ | (4,832,463 | ) | (467,103 | ) | $ | (5,917 | ) | (1,260 | ) | ||||||||||||||||
| Year ended September 30, 2016 | ||||||||||||||||||||||||||||||||
| Class A | $ | 1,366,457 | 141,284 | $ | 665,752 | 68,766 | $ | (2,551,946 | ) | (264,855 | ) | $ | (519,737 | ) | (54,805 | ) | ||||||||||||||||
| Class B | 711 | 74 | 1,420 | 147 | (28,717 | ) | (2,976 | ) | (26,586 | ) | (2,755 | ) | ||||||||||||||||||||
| Class C | 117,761 | 12,133 | 44,189 | 4,569 | (282,911 | ) | (29,404 | ) | (120,961 | ) | (12,702 | ) | ||||||||||||||||||||
| Class F-1 | 311,691 | 32,355 | 37,616 | 3,885 | (405,111 | ) | (41,974 | ) | (55,804 | ) | (5,734 | ) | ||||||||||||||||||||
| Class F-2 | 881,040 | 90,568 | 75,707 | 7,825 | (1,113,122 | ) | (113,605 | ) | (156,375 | ) | (15,212 | ) | ||||||||||||||||||||
| Class 529-A | 37,442 | 3,875 | 18,288 | 1,889 | (64,427 | ) | (6,671 | ) | (8,697 | ) | (907 | ) | ||||||||||||||||||||
| Class 529-B | 92 | 10 | 98 | 10 | (2,163 | ) | (225 | ) | (1,973 | ) | (205 | ) | ||||||||||||||||||||
| Class 529-C | 13,295 | 1,377 | 5,416 | 560 | (26,584 | ) | (2,759 | ) | (7,873 | ) | (822 | ) | ||||||||||||||||||||
| Class 529-E | 1,949 | 202 | 979 | 101 | (3,358 | ) | (347 | ) | (430 | ) | (44 | ) | ||||||||||||||||||||
| Class 529-F-1 | 5,208 | 539 | 1,381 | 143 | (4,832 | ) | (501 | ) | 1,757 | 181 | ||||||||||||||||||||||
| Class R-1 | 2,544 | 264 | 904 | 93 | (6,783 | ) | (701 | ) | (3,335 | ) | (344 | ) | ||||||||||||||||||||
| Class R-2 | 42,110 | 4,361 | 9,399 | 971 | (56,326 | ) | (5,837 | ) | (4,817 | ) | (505 | ) | ||||||||||||||||||||
| Class R-2E | 3,306 | 346 | 92 | 9 | (681 | ) | (70 | ) | 2,717 | 285 | ||||||||||||||||||||||
| Class R-3 | 52,396 | 5,418 | 11,225 | 1,161 | (84,525 | ) | (8,752 | ) | (20,904 | ) | (2,173 | ) | ||||||||||||||||||||
| Class R-4 | 44,599 | 4,606 | 10,168 | 1,051 | (80,643 | ) | (8,361 | ) | (25,876 | ) | (2,704 | ) | ||||||||||||||||||||
| Class R-5E6 | 10 | 1 | — | — | — | — | 10 | 1 | ||||||||||||||||||||||||
| Class R-5 | 27,495 | 2,869 | 5,191 | 537 | (47,748 | ) | (4,958 | ) | (15,062 | ) | (1,552 | ) | ||||||||||||||||||||
| Class R-6 | 220,130 | 22,882 | 68,407 | 7,061 | (200,701 | ) | (21,468 | ) | 87,836 | 8,475 | ||||||||||||||||||||||
| Total net increase (decrease) | $ | 3,128,236 | 323,164 | $ | 956,232 | 98,778 | $ | (4,960,578 | ) | (513,464 | ) | $ | (876,110 | ) | (91,522 | ) | ||||||||||||||||
| 1 | Includes exchanges between share classes of the fund. |
| 2 | Class B and 529-B shares were fully liquidated on May 5, 2017. |
| 3 | Class T and 529-T shares began investment operations on April 7, 2017. |
| 4 | Class F-3 shares began investment operations on January 27, 2017. |
| 5 | Amount less than one thousand. |
| 6 | Class R-5E shares began investment operations on November 20, 2015. |
10. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $11,730,356,000 and $11,451,632,000, respectively, during the year ended September 30, 2017.
| 24 | American High-Income Trust |
Financial highlights
| Income (loss) from investment operations1 | ||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||
| Class A: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | $ | 10.18 | $ | .60 | $ | .27 | $ | .87 | $ | (.57 | ) | $ | 10.48 | 8.73 | % | $ | 11,666 | .69 | % | .69 | % | 5.79 | % | |||||||||||||||||||||
| 9/30/2016 | 9.83 | .61 | .34 | .95 | (.60 | ) | 10.18 | 10.15 | 11,897 | .71 | .71 | 6.28 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .64 | (1.25 | ) | (.61 | ) | (.65 | ) | 9.83 | (5.84 | ) | 12,033 | .67 | .67 | 5.94 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .68 | (.13 | ) | .55 | (.68 | ) | 11.09 | 4.93 | 14,286 | .66 | .66 | 5.99 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .72 | .06 | .78 | (.74 | ) | 11.22 | 7.10 | 14,178 | .66 | .66 | 6.37 | ||||||||||||||||||||||||||||||||
| Class C: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .52 | .27 | .79 | (.49 | ) | 10.48 | 7.87 | 760 | 1.48 | 1.48 | 5.00 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .53 | .34 | .87 | (.52 | ) | 10.18 | 9.28 | 871 | 1.51 | 1.51 | 5.49 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .55 | (1.25 | ) | (.70 | ) | (.56 | ) | 9.83 | (6.59 | ) | 967 | 1.47 | 1.47 | 5.14 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .59 | (.13 | ) | .46 | (.59 | ) | 11.09 | 4.11 | 1,238 | 1.46 | 1.46 | 5.20 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .63 | .06 | .69 | (.65 | ) | 11.22 | 6.25 | 1,330 | 1.48 | 1.48 | 5.56 | ||||||||||||||||||||||||||||||||
| Class T: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/20174,5 | 10.40 | .30 | .06 | .36 | (.28 | ) | 10.48 | 3.54 | 6,7 | — | 8 | .23 | 6,7 | .23 | 6,7 | 2.84 | 6,7 | |||||||||||||||||||||||||||
| Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .60 | .26 | .86 | (.56 | ) | 10.48 | 8.69 | 611 | .73 | .73 | 5.75 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .61 | .34 | .95 | (.60 | ) | 10.18 | 10.12 | 643 | .74 | .74 | 6.26 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .63 | (1.25 | ) | (.62 | ) | (.64 | ) | 9.83 | (5.87 | ) | 677 | .70 | .70 | 5.91 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .68 | (.13 | ) | .55 | (.68 | ) | 11.09 | 4.87 | 927 | .71 | .71 | 5.96 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .71 | .06 | .77 | (.73 | ) | 11.22 | 7.03 | 1,418 | .73 | .73 | 6.32 | ||||||||||||||||||||||||||||||||
| Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .62 | .27 | .89 | (.59 | ) | 10.48 | 8.99 | 1,103 | .46 | .46 | 6.04 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .63 | .34 | .97 | (.62 | ) | 10.18 | 10.41 | 1,171 | .48 | .48 | 6.53 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .66 | (1.25 | ) | (.59 | ) | (.67 | ) | 9.83 | (5.64 | ) | 1,281 | .45 | .45 | 6.15 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .71 | (.13 | ) | .58 | (.71 | ) | 11.09 | 5.15 | 1,322 | .44 | .44 | 6.21 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .74 | .06 | .80 | (.76 | ) | 11.22 | 7.32 | 935 | .46 | .46 | 6.58 | ||||||||||||||||||||||||||||||||
| Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/20174,9 | 10.38 | .43 | .08 | .51 | (.41 | ) | 10.48 | 4.95 | 6 | 354 | .35 | 10 | .35 | 10 | 6.05 | 10 | ||||||||||||||||||||||||||||
| Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .59 | .27 | .86 | (.56 | ) | 10.48 | 8.66 | 320 | .76 | .76 | 5.72 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .60 | .34 | .94 | (.59 | ) | 10.18 | 10.05 | 314 | .81 | .81 | 6.18 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .63 | (1.25 | ) | (.62 | ) | (.64 | ) | 9.83 | (5.93 | ) | 312 | .76 | .76 | 5.84 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .67 | (.13 | ) | .54 | (.67 | ) | 11.09 | 4.83 | 367 | .75 | .75 | 5.89 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .71 | .06 | .77 | (.73 | ) | 11.22 | 7.00 | 357 | .76 | .76 | 6.27 | ||||||||||||||||||||||||||||||||
See page 27 for footnotes.
| American High-Income Trust | 25 |
Financial highlights (continued)
| Income (loss) from investment operations1 | ||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||
| Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | $ | 10.18 | $ | .51 | $ | .27 | $ | .78 | $ | (.48 | ) | $ | 10.48 | 7.83 | % | $ | 100 | 1.53 | % | 1.53 | % | 4.95 | % | |||||||||||||||||||||
| 9/30/2016 | 9.83 | .53 | .34 | .87 | (.52 | ) | 10.18 | 9.22 | 104 | 1.57 | 1.57 | 5.43 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .55 | (1.25 | ) | (.70 | ) | (.56 | ) | 9.83 | (6.65 | ) | 108 | 1.53 | 1.53 | 5.07 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .58 | (.13 | ) | .45 | (.58 | ) | 11.09 | 4.03 | 133 | 1.53 | 1.53 | 5.12 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .62 | .06 | .68 | (.64 | ) | 11.22 | 6.17 | 132 | 1.55 | 1.55 | 5.49 | ||||||||||||||||||||||||||||||||
| Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .57 | .27 | .84 | (.54 | ) | 10.48 | 8.44 | 17 | .96 | .96 | 5.52 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .58 | .34 | .92 | (.57 | ) | 10.18 | 9.85 | 17 | 1.00 | 1.00 | 5.99 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .61 | (1.25 | ) | (.64 | ) | (.62 | ) | 9.83 | (6.12 | ) | 17 | .97 | .97 | 5.63 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .65 | (.13 | ) | .52 | (.65 | ) | 11.09 | 4.60 | 20 | .98 | .98 | 5.67 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .68 | .06 | .74 | (.70 | ) | 11.22 | 6.75 | 20 | .99 | .99 | 6.04 | ||||||||||||||||||||||||||||||||
| Class 529-T: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/20174,5 | 10.40 | .29 | .07 | .36 | (.28 | ) | 10.48 | 3.51 | 6,7 | — | 8 | .26 | 6,7 | .26 | 6,7 | 2.81 | 6,7 | |||||||||||||||||||||||||||
| Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .62 | .26 | .88 | (.58 | ) | 10.48 | 8.89 | 28 | .54 | .54 | 5.94 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .62 | .34 | .96 | (.61 | ) | 10.18 | 10.30 | 24 | .58 | .58 | 6.40 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .65 | (1.25 | ) | (.60 | ) | (.66 | ) | 9.83 | (5.71 | ) | 22 | .54 | .54 | 6.07 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .70 | (.13 | ) | .57 | (.70 | ) | 11.09 | 5.06 | 25 | .53 | .53 | 6.11 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .73 | .06 | .79 | (.75 | ) | 11.22 | 7.22 | 23 | .54 | .54 | 6.48 | ||||||||||||||||||||||||||||||||
| Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .52 | .27 | .79 | (.49 | ) | 10.48 | 7.89 | 12 | 1.47 | 1.47 | 5.02 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .53 | .34 | .87 | (.52 | ) | 10.18 | 9.29 | 16 | 1.50 | 1.50 | 5.51 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .55 | (1.25 | ) | (.70 | ) | (.56 | ) | 9.83 | (6.58 | ) | 19 | 1.46 | 1.46 | 5.15 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .59 | (.13 | ) | .46 | (.59 | ) | 11.09 | 4.11 | 24 | 1.46 | 1.46 | 5.19 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .63 | .06 | .69 | (.65 | ) | 11.22 | 6.25 | 24 | 1.47 | 1.47 | 5.56 | ||||||||||||||||||||||||||||||||
| Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .52 | .27 | .79 | (.49 | ) | 10.48 | 7.90 | 166 | 1.46 | 1.46 | 5.02 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .53 | .34 | .87 | (.52 | ) | 10.18 | 9.27 | 184 | 1.52 | 1.52 | 5.47 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .55 | (1.25 | ) | (.70 | ) | (.56 | ) | 9.83 | (6.60 | ) | 183 | 1.48 | 1.48 | 5.13 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .59 | (.13 | ) | .46 | (.59 | ) | 11.09 | 4.06 | 224 | 1.50 | 1.50 | 5.15 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .63 | .06 | .69 | (.65 | ) | 11.22 | 6.26 | 231 | 1.47 | 1.47 | 5.57 | ||||||||||||||||||||||||||||||||
| Class R-2E: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .55 | .27 | .82 | (.52 | ) | 10.48 | 8.22 | 6 | 1.16 | 1.16 | 5.31 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .57 | .34 | .91 | (.56 | ) | 10.18 | 9.72 | 3 | 1.16 | 1.16 | 5.66 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .63 | (1.25 | ) | (.62 | ) | (.64 | ) | 9.83 | (5.94 | )7 | — | 8 | .79 | 7 | .79 | 7 | 5.76 | 7 | |||||||||||||||||||||||||
| 9/30/20144,11 | 11.40 | .06 | (.31 | ) | (.25 | ) | (.06 | ) | 11.09 | (2.20 | )6,7 | — | 8 | .04 | 6,7 | .04 | 6,7 | .51 | 6,7 | |||||||||||||||||||||||||
| 26 | American High-Income Trust |
| Income (loss) from investment operations1 | ||||||||||||||||||||||||||||||||||||||||||||
| Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income to average net assets3 | |||||||||||||||||||||||||||||||||
| Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | $ | 10.18 | $ | .57 | $ | .27 | $ | .84 | $ | (.54 | ) | $ | 10.48 | 8.40 | % | $ | 190 | 1.00 | % | 1.00 | % | 5.49 | % | |||||||||||||||||||||
| 9/30/2016 | 9.83 | .58 | .34 | .92 | (.57 | ) | 10.18 | 9.78 | 195 | 1.06 | 1.06 | 5.95 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .60 | (1.25 | ) | (.65 | ) | (.61 | ) | 9.83 | (6.16 | ) | 209 | 1.01 | 1.01 | 5.61 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .64 | (.13 | ) | .51 | (.64 | ) | 11.09 | 4.57 | 256 | 1.01 | 1.01 | 5.65 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .68 | .06 | .74 | (.70 | ) | 11.22 | 6.74 | 310 | 1.01 | 1.01 | 6.04 | ||||||||||||||||||||||||||||||||
| Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .60 | .27 | .87 | (.57 | ) | 10.48 | 8.73 | 158 | .69 | .69 | 5.79 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .61 | .34 | .95 | (.60 | ) | 10.18 | 10.13 | 159 | .73 | .73 | 6.29 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .64 | (1.25 | ) | (.61 | ) | (.65 | ) | 9.83 | (5.86 | ) | 180 | .69 | .69 | 5.93 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .68 | (.13 | ) | .55 | (.68 | ) | 11.09 | 4.90 | 230 | .69 | .69 | 5.96 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .72 | .06 | .78 | (.74 | ) | 11.22 | 7.06 | 230 | .70 | .70 | 6.34 | ||||||||||||||||||||||||||||||||
| Class R-5E: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .63 | .27 | .90 | (.60 | ) | 10.48 | 9.02 | — | 8 | .59 | .42 | 6.06 | |||||||||||||||||||||||||||||||
| 9/30/20164,12 | 9.70 | .53 | .47 | 1.00 | (.52 | ) | 10.18 | 10.70 | 6 | — | 8 | .58 | 10 | .57 | 10 | 6.37 | 10 | |||||||||||||||||||||||||||
| Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .63 | .27 | .90 | (.60 | ) | 10.48 | 9.05 | 82 | .40 | .40 | 6.08 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .64 | .34 | .98 | (.63 | ) | 10.18 | 10.47 | 76 | .42 | .42 | 6.61 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .67 | (1.25 | ) | (.58 | ) | (.68 | ) | 9.83 | (5.58 | ) | 88 | .39 | .39 | 6.23 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .71 | (.13 | ) | .58 | (.71 | ) | 11.09 | 5.21 | 111 | .39 | .39 | 6.30 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .75 | .06 | .81 | (.77 | ) | 11.22 | 7.38 | 224 | .40 | .40 | 6.66 | ||||||||||||||||||||||||||||||||
| Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2017 | 10.18 | .63 | .27 | .90 | (.60 | ) | 10.48 | 9.10 | 1,776 | .35 | .35 | 6.12 | ||||||||||||||||||||||||||||||||
| 9/30/2016 | 9.83 | .64 | .34 | .98 | (.63 | ) | 10.18 | 10.54 | 1,169 | .36 | .36 | 6.62 | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 11.09 | .67 | (1.25 | ) | (.58 | ) | (.68 | ) | 9.83 | (5.53 | ) | 1,046 | .34 | .34 | 6.26 | |||||||||||||||||||||||||||||
| 9/30/2014 | 11.22 | .72 | (.13 | ) | .59 | (.72 | ) | 11.09 | 5.26 | 803 | .34 | .34 | 6.29 | |||||||||||||||||||||||||||||||
| 9/30/2013 | 11.18 | .76 | .06 | .82 | (.78 | ) | 11.22 | 7.43 | 472 | .35 | .35 | 6.66 | ||||||||||||||||||||||||||||||||
| Year ended September 30 | ||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||
| Portfolio turnover rate for all share classes | 73% | 76% | 49% | 62% | 61% | |||||
| 1 | Based on average shares outstanding. |
| 2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
| 3 | This column reflects the impact, if any, of certain reimbursements from CRMC. During some of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes. |
| 4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
| 5 | Class T and 529-T shares began investment operations on April 7, 2017. |
| 6 | Not annualized. |
| 7 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
| 8 | Amount less than $1 million. |
| 9 | Class F-3 shares began investment operations on January 27, 2017. |
| 10 | Annualized. |
| 11 | Class R-2E shares began investment operations on August 29, 2014. |
| 12 | Class R-5E shares began investment operations on November 20, 2015. |
See Notes to Financial Statements
| American High-Income Trust | 27 |
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 of American High-Income Trust (the “Fund”), including the summary investment portfolio, as of September 30, 2017, 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, 2017, by correspondence with the custodian, brokers, and agent banks; where replies were not received from brokers and agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of American High-Income Trust as of September 30, 2017, 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, 2017
| 28 | American High-Income Trust |
| Expense example | unaudited |
As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (April 1, 2017, through September 30, 2017).
Actual expenses:
The first line of each share class in the table on the following 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 titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following 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:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page 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.
| American High-Income Trust | 29 |
| Beginning account value 4/1/2017 | Ending account value 9/30/2017 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
| Class A - actual return | $ | 1,000.00 | $ | 1,035.64 | $ | 3.52 | .69 | % | ||||||||
| Class A - assumed 5% return | 1,000.00 | 1,021.61 | 3.50 | .69 | ||||||||||||
| Class C - actual return | 1,000.00 | 1,031.56 | 7.54 | 1.48 | ||||||||||||
| Class C - assumed 5% return | 1,000.00 | 1,017.65 | 7.49 | 1.48 | ||||||||||||
| Class T - actual return† | 1,000.00 | 1,035.39 | 2.36 | .48 | ||||||||||||
| Class T - assumed 5% return† | 1,000.00 | 1,022.66 | 2.43 | .48 | ||||||||||||
| Class F-1 - actual return | 1,000.00 | 1,035.39 | 3.72 | .73 | ||||||||||||
| Class F-1 - assumed 5% return | 1,000.00 | 1,021.41 | 3.70 | .73 | ||||||||||||
| Class F-2 - actual return | 1,000.00 | 1,036.82 | 2.35 | .46 | ||||||||||||
| Class F-2 - assumed 5% return | 1,000.00 | 1,022.76 | 2.33 | .46 | ||||||||||||
| Class F-3 - actual return | 1,000.00 | 1,037.34 | 1.79 | .35 | ||||||||||||
| Class F-3 - assumed 5% return | 1,000.00 | 1,023.31 | 1.78 | .35 | ||||||||||||
| Class 529-A - actual return | 1,000.00 | 1,035.29 | 3.83 | .75 | ||||||||||||
| Class 529-A - assumed 5% return | 1,000.00 | 1,021.31 | 3.80 | .75 | ||||||||||||
| Class 529-C - actual return | 1,000.00 | 1,031.33 | 7.74 | 1.52 | ||||||||||||
| Class 529-C - assumed 5% return | 1,000.00 | 1,017.45 | 7.69 | 1.52 | ||||||||||||
| Class 529-E - actual return | 1,000.00 | 1,034.23 | 4.90 | .96 | ||||||||||||
| Class 529-E - assumed 5% return | 1,000.00 | 1,020.26 | 4.86 | .96 | ||||||||||||
| Class 529-T - actual return† | 1,000.00 | 1,035.06 | 2.70 | .55 | ||||||||||||
| Class 529-T - assumed 5% return† | 1,000.00 | 1,022.31 | 2.79 | .55 | ||||||||||||
| Class 529-F-1 - actual return | 1,000.00 | 1,036.43 | 2.71 | .53 | ||||||||||||
| Class 529-F-1 - assumed 5% return | 1,000.00 | 1,022.41 | 2.69 | .53 | ||||||||||||
| Class R-1 - actual return | 1,000.00 | 1,031.59 | 7.54 | 1.48 | ||||||||||||
| Class R-1 - assumed 5% return | 1,000.00 | 1,017.65 | 7.49 | 1.48 | ||||||||||||
| Class R-2 - actual return | 1,000.00 | 1,031.71 | 7.39 | 1.45 | ||||||||||||
| Class R-2 - assumed 5% return | 1,000.00 | 1,017.80 | 7.33 | 1.45 | ||||||||||||
| Class R-2E - actual return | 1,000.00 | 1,033.19 | 5.91 | 1.16 | ||||||||||||
| Class R-2E - assumed 5% return | 1,000.00 | 1,019.25 | 5.87 | 1.16 | ||||||||||||
| Class R-3 - actual return | 1,000.00 | 1,034.01 | 5.10 | 1.00 | ||||||||||||
| Class R-3 - assumed 5% return | 1,000.00 | 1,020.05 | 5.06 | 1.00 | ||||||||||||
| Class R-4 - actual return | 1,000.00 | 1,035.57 | 3.57 | .70 | ||||||||||||
| Class R-4 - assumed 5% return | 1,000.00 | 1,021.56 | 3.55 | .70 | ||||||||||||
| Class R-5E - actual return | 1,000.00 | 1,037.31 | 1.84 | .36 | ||||||||||||
| Class R-5E - assumed 5% return | 1,000.00 | 1,023.26 | 1.83 | .36 | ||||||||||||
| Class R-5 - actual return | 1,000.00 | 1,037.09 | 2.04 | .40 | ||||||||||||
| Class R-5 - assumed 5% return | 1,000.00 | 1,023.06 | 2.03 | .40 | ||||||||||||
| Class R-6 - actual return | 1,000.00 | 1,037.39 | 1.79 | .35 | ||||||||||||
| Class R-6 - assumed 5% return | 1,000.00 | 1,023.31 | 1.78 | .35 | ||||||||||||
| * | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
| † | The period for the “annualized expense ratio” and “actual return” line is based on the number of days since the share class began investment operations on April 7, 2017. The “assumed 5% return” line is based on 183 days. |
| Tax information | unaudited |
We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended September 30, 2017:
| Qualified dividend income | $ | 25,194,000 | |
| Corporate dividends received deduction | $ | 15,605,000 | |
| U.S. government income that may be exempt from state taxation | $ | 5,017,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2018, to determine the calendar year amounts to be included on their 2017 tax returns. Shareholders should consult their tax advisors.
| 30 | American High-Income Trust |
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| American High-Income Trust | 31 |
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| 32 | American High-Income Trust |
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| American High-Income Trust | 33 |
Board of trustees and other officers
Independent trustees1
| Name and year of birth | Year first elected a trustee of the fund2 | Principal occupation(s) during past five years | Number of portfolios in fund complex overseen by trustee | Other directorships3 held by trustee | ||||
| William H. Baribault, 1945 | 2010 | CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting) | 80 | General Finance Corporation | ||||
| James G. Ellis, 1947 | 2006 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 80 | Mercury General Corporation | ||||
| Leonard R. Fuller, 1946 | 1994 | Private investor; former President and CEO, Fuller Consulting(financial management consulting) | 80 | None | ||||
| Mary Davis Holt, 1950 | 2015-2016 2017 | Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003) | 77 | None | ||||
| R. Clark Hooper, 1946 Chairman of the Board (Independent and Non-Executive) | 2005 | Private investor | 80 | None | ||||
| Merit E. Janow, 1958 | 2010 | Dean and Professor, Columbia University, School of International and Public Affairs | 79 | MasterCard Incorporated; Trimble Inc. | ||||
| Laurel B. Mitchell, PhD, 1955 | 2010 | Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands | 76 | None | ||||
| Frank M. Sanchez, 1943 | 1999 | Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee) | 76 | None | ||||
| Margaret Spellings, 1957 | 2010 | President, The University of North Carolina; former President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce | 81 | ClubCorp Holdings, Inc. |
We are deeply saddened by the loss of Dr. Steadman Upham, who passed away on July 30, 2017. Dr. Upham served as an independent trustee on the boards of several American Funds since 2001. His wise counsel and friendship will be missed.
Interested trustees4,5
| Name, year of birth and position with fund | Year first elected a trustee or officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | Number of portfolios in fund complex overseen by trustee | Other directorships3 held by trustee | ||||
| John H. Smet, 1956 Vice Chairman of the Board | 2011 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 22 | None | ||||
| Michael C. Gitlin, 1970 | 2015 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.;6 served as Head of Fixed Income at a large investment management firm prior to joining Capital Research and Management Company in 2015 | 18 | None |
The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
| 34 | American High-Income Trust |
Other officers5
| Name, year of birth and position with fund | Year first elected an officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | ||
| David C. Barclay, 1956 President | 1995 | Partner — Capital Fixed Income Investors, Capital Research and Management Company | ||
| David A. Daigle, 1967 Senior Vice President | 2008 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Partner — Capital Fixed Income Investors, Capital Bank and Trust Company6 | ||
| Kristine M. Nishiyama, 1970 Senior Vice President | 2003 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President and General Counsel, Capital Bank and Trust Company6 | ||
| Tara L. Torrens, 1979 Senior Vice President | 2017 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
| Thomas H. Chow, 1966 Vice President | 2015 | Vice President — Capital Fixed Income Investors, Capital Research and Management Company | ||
| Shannon Ward, 1964 Vice President | 2017 | Vice President — Capital Fixed Income Investors, Capital Research and Management Company | ||
| Steven I. Koszalka, 1964 Secretary | 2010 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
| Brian C. Janssen, 1972 Treasurer | 2012 | Vice President — Investment Operations, Capital Research and Management Company | ||
| Jane Y. Chung, 1974 Assistant Secretary | 2014 | Associate — Fund Business Management Group, Capital Research and Management Company | ||
| Dori Laskin, 1951 Assistant Treasurer | 2010 | Vice President — Investment Operations, Capital Research and Management Company | ||
| Gregory F. Niland, 1971 Assistant Treasurer | 2015 | Vice President — Investment Operations, Capital Research and Management Company |
| 1 | The term independent trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940. |
| 2 | Trustees and officers of the fund serve until their resignation, removal or retirement. |
| 3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
| 4 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter). |
| 5 | All of the trustees and/or officers listed, except Thomas H. Chow, Tara L. Torrens and Shannon Ward, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
| 6 | Company affiliated with Capital Research and Management Company. |
| American High-Income Trust | 35 |
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 92618-4518
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132
Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
| 36 | American High-Income Trust |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete September 30, 2017, 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. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of shareholders of American High-Income Trust, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2017, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
American Funds from Capital Group
The Capital AdvantageSM
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.
| Aligned with investor success | |
| We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | |
| The Capital System | |
| The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | |
| American Funds’ superior long-term track record | |
| Equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.2 Fund management fees have been among the lowest in the industry.3 |
| 1 | Portfolio manager experience as of December 31, 2016. | |
| 2 | Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale. | |
| 3 | On average, our management fees were in the lowest quintile 73% of the time, based on the 20-year period ended December 31, 2016, versus comparable Lipper categories, excluding funds of funds. |
ITEM 2 – Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-9225 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.
ITEM 3 – Audit Committee Financial Expert
The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.
ITEM 4 – Principal Accountant Fees and Services
| Registrant: | ||
| a) Audit Fees: | ||
| 2016 | $169,000 | |
| 2017 | $174,000 | |
| b) Audit-Related Fees: | ||
| 2016 | $5,000 | |
| 2017 | $4,000 | |
| c) Tax Fees: | ||
| 2016 | $8,000 | |
| 2017 | $8,000 | |
| The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | ||
| d) All Other Fees: | ||
| 2016 | None | |
| 2017 | None | |
| Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): | ||
| a) Audit Fees: | ||
| Not Applicable | ||
| b) Audit-Related Fees: | ||
| 2016 | $1,169,000 | |
| 2017 | $1,161,000 | |
| 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 Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants. | ||
| c) Tax Fees: | ||
| 2016 | None | |
| 2017 | None | |
| The tax fees consist of consulting services relating to the Registrant’s investments. | ||
| d) All Other Fees: | ||
| 2016 | $3,000 | |
| 2017 | None | |
| The other fees consist of subscription services related to an accounting research tool. | ||
| All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates. | ||
| Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,235,000 for fiscal year 2016 and $1,364,000 for fiscal year 2017. 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. | ||
All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.
Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were ------------------------------. 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
American High-Income Trust®
Investment portfolio
September 30, 2017
| Bonds, notes & other debt instruments 93.14% Corporate bonds & notes 91.84% Energy 16.63% | Principal?amount (000) | Value (000) |
| American Energy (Marcellus), Term Loan A, (3-month USD-LIBOR + 7.50%) 8.735% 20211,2,3,4 | $33,833 | $2,516 |
| American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.485% 20201,2,3,4 | 45,103 | 33,630 |
| American Energy (Permian Basin) (3-month USD-LIBOR + 6.50%) 7.811% 20194,5 | 7,200 | 6,696 |
| American Energy (Permian Basin) 7.125% 20205 | 49,535 | 42,848 |
| American Energy (Permian Basin) 7.375% 20215 | 49,730 | 43,141 |
| American Midstream Partners, LP, 8.50% 20215 | 12,425 | 12,891 |
| Antero Resources Corp. 5.375% 2024 | 22,140 | 23,026 |
| Antero Resources Corp. 5.00% 2025 | 6,375 | 6,503 |
| Ascent Resources-Marcellus LLC 10.00% 20225,6 | 26,600 | 28,662 |
| Blackstone CQP Holdco LP, 6.00% 20215,7 | 18,400 | 18,078 |
| Blackstone CQP Holdco LP, 6.50% 20215,7 | 161,000 | 163,415 |
| Blue Racer Midstream LLC / Blue Racer Finance Corp. 6.125% 20225 | 54,945 | 57,280 |
| California Resources Corp., Term Loan B1, (3-month USD-LIBOR + 10.375%) 11.609% 20212,3,4 | 9,525 | 10,189 |
| Cheniere Energy, Inc. 7.00% 2024 | 7,730 | 8,822 |
| Cheniere Energy, Inc. 5.875% 2025 | 10,450 | 11,286 |
| Chesapeake Energy Corp. (3-month USD-LIBOR + 3.25%) 4.554% 20194 | 43,525 | 43,416 |
| Chesapeake Energy Corp. 6.125% 2021 | 5,900 | 5,959 |
| Chesapeake Energy Corp. 4.875% 2022 | 24,025 | 22,463 |
| Chesapeake Energy Corp. 8.00% 20225 | 21,471 | 23,242 |
| Chesapeake Energy Corp. 8.00% 20255 | 62,350 | 63,129 |
| Chesapeake Energy Corp. 8.00% 20255 | 7,700 | 7,796 |
| Chesapeake Energy Corp. 8.00% 20275 | 40,075 | 39,774 |
| Chesapeake Energy Corp., Term Loan, (3-month USD-LIBOR + 7.50%) 8.814% 20212,3,4 | 21,850 | 23,564 |
| CONSOL Energy Inc. 5.875% 2022 | 96,555 | 98,003 |
| Continental Resources Inc. 5.00% 2022 | 5,100 | 5,202 |
| Convey Park Energy LLC 7.50% 20255 | 32,400 | 33,655 |
| DCP Midstream Operating LP 4.95% 2022 | 36,633 | 38,190 |
| DCP Midstream Operating LP 3.875% 2023 | 15,265 | 15,036 |
| Denbury Resources Inc. 9.00% 20215 | 26,975 | 26,469 |
| Diamond Offshore Drilling, Inc. 7.875% 2025 | 25,925 | 27,513 |
| Diamond Offshore Drilling, Inc. 5.70% 2039 | 5,600 | 4,634 |
| Diamond Offshore Drilling, Inc. 4.875% 2043 | 24,590 | 18,565 |
| Enbridge Energy Partners, LP 4.375% 2020 | 5,830 | 6,131 |
| Enbridge Energy Partners, LP 5.875% 2025 | 6,035 | 6,891 |
| Enbridge Energy Partners, LP 7.375% 2045 | 19,700 | 25,451 |
| Enbridge Inc. 5.50% 2077 | 11,250 | 11,419 |
| Enbridge Inc., Series A, 6.00% 2077 | 16,600 | 17,637 |
| Energy Transfer Partners, LP 7.50% 2020 | 13,375 | 15,130 |
| Energy Transfer Partners, LP 5.875% 2024 | 27,440 | 29,601 |
| Energy Transfer Partners, LP 4.75% 2026 | 3,400 | 3,584 |
| Energy Transfer Partners, LP 5.50% 2027 | 21,876 | 23,134 |
| Ensco PLC 5.75% 2044 | 31,820 | 22,990 |
| Enterprise Products Operating LLC 5.25% 2077 | 13,600 | 13,753 |
| EP Energy Corp. 9.375% 2020 | 13,000 | 10,887 |
| EP Energy Corp. 8.00% 20245 | 14,150 | 14,362 |
| EP Energy Corp. 8.00% 20255 | 16,195 | 12,693 |
American High-Income Trust — Page 1 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal?amount (000) | Value (000) |
| Extraction Oil & Gas Holdings LLC 7.875% 20215 | $22,800 | $24,168 |
| Extraction Oil & Gas, Inc. 7.375% 20245 | 11,500 | 12,017 |
| Genesis Energy, LP 6.75% 2022 | 17,550 | 18,033 |
| Genesis Energy, LP 6.50% 2025 | 32,167 | 31,966 |
| Gulfport Energy Corp. 6.375% 2025 | 4,500 | 4,573 |
| Jonah Energy LLC 7.25% 20255 | 52,300 | 52,758 |
| Jupiter Resources Inc. 8.50% 20225 | 17,950 | 12,969 |
| Laredo Petroleum, Inc. 5.625% 2022 | 1,940 | 1,964 |
| Laredo Petroleum, Inc. 6.25% 2023 | 5,100 | 5,279 |
| MPLX LP 4.50% 2023 | 3,500 | 3,727 |
| Murphy Oil Corp. 6.875% 2024 | 11,575 | 12,371 |
| Murphy Oil Corp. 5.75% 2025 | 22,250 | 22,975 |
| Murphy Oil Corp. 5.625% 2027 | 16,700 | 18,015 |
| Murray Energy Corp., Term Loan B2, (3-month USD-LIBOR + 7.25%) 8.583% 20202,3,4 | 9,444 | 8,680 |
| Murray Energy Corp. 11.25% 20215 | 23,875 | 14,325 |
| Newfield Exploration Co. 5.625% 2024 | 6,300 | 6,788 |
| NGL Energy Partners LP 5.125% 2019 | 4,450 | 4,461 |
| NGL Energy Partners LP 6.875% 2021 | 55,832 | 56,111 |
| NGL Energy Partners LP 7.50% 2023 | 13,665 | 13,665 |
| NGL Energy Partners LP 6.125% 2025 | 22,790 | 21,309 |
| NGPL PipeCo LLC 4.375% 20225 | 14,270 | 14,841 |
| NGPL PipeCo LLC 4.875% 20275 | 36,600 | 38,443 |
| NGPL PipeCo LLC 7.768% 20375 | 16,100 | 20,125 |
| Noble Corp. PLC 7.75% 2024 | 10,000 | 8,925 |
| Noble Corp. PLC 7.70% 2025 | 19,155 | 16,473 |
| Noble Corp. PLC 8.70% 2045 | 19,015 | 15,878 |
| NuStar Logistics, LP 5.625% 2027 | 24,000 | 25,380 |
| Oasis Petroleum Inc. 6.50% 2021 | 2,750 | 2,819 |
| Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20211,3,5 | 4,519 | 2,949 |
| Odebrecht Offshore Drilling Finance Ltd. 6.75% 20223,5 | 10,142 | 3,676 |
| ONEOK, Inc. 7.50% 2023 | 9,475 | 11,363 |
| Parsley Energy, Inc. 6.25% 20245 | 2,550 | 2,697 |
| Parsley Energy, Inc. 5.25% 20255 | 3,600 | 3,677 |
| Parsley Energy, Inc. 5.375% 20255 | 5,225 | 5,362 |
| PDC Energy Inc. 7.75% 2022 | 33,945 | 35,366 |
| Peabody Energy Corp. 6.00% 20225 | 13,825 | 14,326 |
| Peabody Energy Corp. 6.375% 20255 | 10,250 | 10,570 |
| Petrobras Global Finance Co. 6.125% 2022 | 14,615 | 15,748 |
| Petrobras Global Finance Co. 6.25% 2024 | 3,715 | 3,979 |
| Petrobras Global Finance Co. 7.375% 2027 | 18,940 | 20,891 |
| Petrobras Global Finance Co. 5.999% 20285 | 18,253 | 18,276 |
| Petróleos Mexicanos 6.75% 20475 | 23,150 | 24,559 |
| QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20193,5 | 1,704 | 1,678 |
| QGOG Constellation SA 9.50% 20243,5,8 | 90,420 | 69,623 |
| Range Resources Corp. 5.00% 20225 | 4,100 | 4,115 |
| Range Resources Corp. 4.875% 2025 | 16,025 | 15,865 |
| Regency Energy Partners LP and Regency Energy Finance Corp. 6.50% 2021 | 3,750 | 3,844 |
| Regency Energy Partners LP and Regency Energy Finance Corp. 5.50% 2023 | 15,225 | 15,743 |
| Rice Energy Inc. 6.25% 2022 | 3,925 | 4,107 |
| Rice Energy Inc. 7.25% 2023 | 5,400 | 5,859 |
| Sabine Pass Liquefaction, LLC 5.625% 2021 | 9,405 | 10,199 |
| Sabine Pass Liquefaction, LLC 5.625% 2025 | 1,800 | 1,988 |
| Seven Generations Energy Ltd. 5.375% 20255 | 22,950 | 23,151 |
| SM Energy Co. 6.50% 2021 | 8,325 | 8,450 |
American High-Income Trust — Page 2 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal?amount (000) | Value (000) |
| SM Energy Co. 6.125% 2022 | $35,125 | $35,388 |
| SM Energy Co. 5.625% 2025 | 40,625 | 38,797 |
| SM Energy Co. 6.75% 2026 | 4,575 | 4,598 |
| Southwestern Energy Co. 4.10% 2022 | 71,858 | 69,702 |
| Southwestern Energy Co. 6.70% 2025 | 5,075 | 5,164 |
| Southwestern Energy Co. 7.50% 2026 | 31,255 | 32,505 |
| Southwestern Energy Co. 7.75% 2027 | 20,230 | 21,014 |
| Summit Midstream Partners LP 5.75% 2025 | 9,950 | 10,149 |
| Sunoco LP 6.25% 2021 | 38,720 | 40,670 |
| Sunoco LP 6.375% 2023 | 9,800 | 10,462 |
| Tallgrass Energy Partners, LP 5.50% 20245 | 26,826 | 27,698 |
| Tapstone Energy Inc. 9.75% 20225 | 28,925 | 25,960 |
| Targa Resources Partners LP 4.125% 2019 | 48,385 | 48,929 |
| Targa Resources Partners LP 6.75% 2024 | 15,000 | 16,350 |
| Targa Resources Partners LP 5.125% 2025 | 6,030 | 6,232 |
| Teekay Corp. 8.50% 2020 | 93,660 | 95,533 |
| Tesoro Logistics LP 5.50% 2019 | 1,850 | 1,956 |
| Tesoro Logistics LP 6.25% 2022 | 6,515 | 6,963 |
| Tesoro Logistics LP 5.25% 2025 | 16,310 | 17,533 |
| TransCanada Corp., junior subordinated, (3-month USD-LIBOR + 2.21%) 3.525% 20674 | 10,295 | 9,571 |
| Transocean Inc. 8.375% 2021 | 14,800 | 15,873 |
| Transocean Inc. 9.00% 20235 | 29,700 | 32,150 |
| Transocean Inc. 7.75% 20243,5 | 13,894 | 15,005 |
| Tullow Oil PLC 6.00% 2020 | 3,675 | 3,666 |
| Ultra Petroleum Corp. 6.875% 20225 | 63,325 | 64,671 |
| Ultra Petroleum Corp. 7.125% 20255 | 9,800 | 9,910 |
| Weatherford International PLC 7.75% 2021 | 21,640 | 22,587 |
| Weatherford International PLC 4.50% 2022 | 13,480 | 12,604 |
| Weatherford International PLC 8.25% 2023 | 20,075 | 20,727 |
| Weatherford International PLC 9.875% 20245 | 22,785 | 25,177 |
| Weatherford International PLC 6.50% 2036 | 31,390 | 27,074 |
| Weatherford International PLC 6.75% 2040 | 45,695 | 40,326 |
| Weatherford International PLC 5.95% 2042 | 5,825 | 4,806 |
| Williams Companies, Inc. 3.70% 2023 | 23,335 | 23,335 |
| Williams Companies, Inc. 4.55% 2024 | 3,400 | 3,536 |
| WPX Energy Inc. 7.50% 2020 | 3,247 | 3,547 |
| WPX Energy Inc. 6.00% 2022 | 15,705 | 16,314 |
| YPF SA 6.95% 20275 | 11,325 | 12,033 |
| 2,884,870 | ||
| Consumer discretionary 12.47% | ||
| AMC Networks Inc. 4.75% 2025 | 5,000 | 5,063 |
| American Axle & Manufacturing Holdings, Inc. 6.25% 20255 | 12,300 | 12,577 |
| American Axle & Manufacturing Holdings, Inc. 6.50% 20275 | 18,650 | 18,860 |
| Boyd Gaming Corp. 6.875% 2023 | 8,460 | 9,079 |
| Boyd Gaming Corp. 6.375% 2026 | 16,550 | 18,102 |
| Burger King Corp. 6.00% 20225 | 11,200 | 11,560 |
| Cablevision Systems Corp. 7.75% 2018 | 14,250 | 14,660 |
| Cablevision Systems Corp. 6.75% 2021 | 33,500 | 37,101 |
| Cablevision Systems Corp. 5.50% 20275 | 12,350 | 12,875 |
| CBS Corp. 7.25% 20245 | 8,050 | 8,634 |
| CBS Outdoor Americas Inc. 5.25% 2022 | 6,250 | 6,484 |
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.875% 20245 | 14,150 | 15,052 |
| CCO Holdings LLC and CCO Holdings Capital Corp. 4.908% 2025 | 7,000 | 7,492 |
American High-Income Trust — Page 3 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal?amount (000) | Value (000) |
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.375% 20255 | $14,050 | $14,596 |
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.50% 20265 | 19,200 | 19,944 |
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20265 | 74,575 | 78,490 |
| CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 20275 | 77,090 | 78,343 |
| Cengage Learning Acquisitions, Inc., Term Loan B, (3-month USD-LIBOR + 4.25%) 5.485% 20232,3,4 | 23,400 | 21,748 |
| Cengage Learning Acquisitions, Inc. 9.50% 20245 | 7,642 | 6,744 |
| Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 171,396 | 169,896 |
| ClubCorp Holdings, Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 3.25% 20242,3,4 | 17,910 | 17,828 |
| Constellation Merger Sub Inc. 8.50% 20255 | 17,975 | 17,705 |
| CRC Escrow Issuer LLC 5.25% 20255 | 18,030 | 18,030 |
| Cumulus Media Inc. 7.75% 2019 | 65,114 | 19,371 |
| Cumulus Media Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.49% 20202,3,4 | 47,234 | 39,086 |
| Delphi Automotive PLC 5.00% 20255 | 15,780 | 16,096 |
| Delta 2 (Formula One), Term Loan B3, 4.235% 20242,3,4 | 8,510 | 8,551 |
| DISH DBS Corp. 7.875% 2019 | 19,175 | 20,997 |
| DISH DBS Corp. 5.125% 2020 | 2,400 | 2,522 |
| DISH DBS Corp. 5.875% 2022 | 7,350 | 7,828 |
| DISH DBS Corp. 5.00% 2023 | 3,350 | 3,448 |
| DISH DBS Corp.5.875% 2024 | 3,250 | 3,417 |
| DISH DBS Corp. 7.75% 2026 | 9,625 | 11,069 |
| Dollar Tree Inc. 5.25% 2020 | 6,925 | 7,126 |
| Dollar Tree Inc. 5.75% 2023 | 24,025 | 25,457 |
| Fertitta Entertainment, Inc. 8.75% 20255 | 38,750 | 39,525 |
| Gannett Co., Inc. 5.125% 2019 | 5,965 | 6,062 |
| Goodyear Tire & Rubber Co. 4.875% 2027 | 5,000 | 5,160 |
| Hanesbrands Inc. 4.625% 20245 | 10,220 | 10,693 |
| Hanesbrands Inc. 4.875% 20265 | 6,430 | 6,711 |
| Hilton Worldwide Holdings Inc. 4.25% 2024 | 4,275 | 4,371 |
| iHeartCommunications, Inc. 9.00% 2019 | 75,000 | 57,563 |
| iHeartCommunications, Inc. 10.625% 2023 | 19,255 | 13,767 |
| iHeartCommunications, Inc., Term Loan D, (3-month USD-LIBOR + 6.75%) 8.083% 20192,3,4 | 47,600 | 36,842 |
| International Game Technology 6.25% 20225 | 1,350 | 1,499 |
| Lamar Media Corp. 5.75% 2026 | 550 | 599 |
| Landry’s, Inc. 6.75% 20245 | 17,500 | 17,741 |
| Levi Strauss & Co. 5.00% 2025 | 4,750 | 5,029 |
| Liberty Global PLC 6.125% 20255 | 6,500 | 6,963 |
| Limited Brands, Inc. 6.625% 2021 | 6,750 | 7,459 |
| Limited Brands, Inc. 6.875% 2035 | 10,370 | 10,163 |
| LKQ Corp. 4.75% 2023 | 6,800 | 7,081 |
| Loral Space & Communications Inc. 8.875% 20245 | 8,775 | 9,905 |
| McGraw-Hill Global Education Holdings, LLC 7.875% 20245 | 9,875 | 9,776 |
| McGraw-Hill Global Education Holdings, LLC, Term Loan B, (3-month USD-LIBOR + 4.00%) 5.235% 20222,3,4 | 7,431 | 7,311 |
| MDC Partners Inc. 6.50% 20245 | 36,563 | 37,020 |
| Mediacom Broadband LLC and Mediacom Broadband Corp. 6.375% 2023 | 15,490 | 16,187 |
| Melco Crown Entertainment Ltd. 5.875% 20195 | 12,250 | 12,893 |
| Meritage Homes Corp. 5.125% 2027 | 13,375 | 13,442 |
| MGM Growth Properties LLC 5.625% 2024 | 12,275 | 13,362 |
| MGM Resorts International 8.625% 2019 | 6,275 | 6,793 |
| MGM Resorts International 7.75% 2022 | 8,950 | 10,472 |
| MGM Resorts International 6.00% 2023 | 34,975 | 38,647 |
| MGM Resorts International 4.625% 2026 | 3,200 | 3,256 |
| MHGE Parent LLC/Finance 8.50% 20195,8 | 15,325 | 15,363 |
| Michaels Stores, Inc. 5.875% 20205 | 9,860 | 10,094 |
| Mohegan Tribal Gaming Authority 7.875% 20245 | 12,150 | 13,031 |
American High-Income Trust — Page 4 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal?amount (000) | Value (000) |
| NBC Universal Enterprise, Inc. 5.25% 20495 | $23,885 | $25,557 |
| Neiman Marcus Group LTD Inc. 8.00% 20215 | 29,635 | 15,558 |
| Neiman Marcus Group LTD Inc. 9.50% 20215,8 | 49,030 | 23,289 |
| Neiman Marcus Group LTD Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.481% 20202,3,4 | 69,731 | 52,189 |
| Netflix, Inc. 5.75% 2024 | 12,150 | 13,274 |
| NMG Finco PLC 5.75% 20225 | 23,505 | 24,281 |
| Penn National Gaming, Inc. 5.625% 20275 | 3,750 | 3,900 |
| Petsmart, Inc. 7.125% 20235 | 122,584 | 95,959 |
| Petsmart, Inc. 5.875% 20255 | 63,735 | 55,927 |
| Petsmart, Inc. 8.875% 20255 | 56,100 | 44,670 |
| Petsmart, Inc., Term Loan B-2, (3-month USD-LIBOR + 3.00%) 4.24% 20222,3,4 | 29,933 | 25,486 |
| Playa Resorts Holding BV 8.00% 20205 | 16,972 | 17,736 |
| Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 67,505 | 69,530 |
| Sally Holdings LLC and Sally Capital Inc., Term Loan, (3-month USD-LIBOR + 4.50%) 4.50% 20242,3 | 8,535 | 8,546 |
| Schaeffler Verwaltungs 4.125% 20215,8 | 2,650 | 2,703 |
| Schaeffler Verwaltungs 4.75% 20265,8 | 6,850 | 6,996 |
| Scientific Games Corp. 7.00% 20225 | 21,800 | 23,190 |
| Scientific Games Corp. 10.00% 2022 | 1,838 | 2,043 |
| Service Corp. International 5.375% 2024 | 1,755 | 1,871 |
| ServiceMaster Global Holdings, Inc. 5.125% 20245 | 10,000 | 10,300 |
| Sirius XM Radio Inc 3.875% 20225 | 16,925 | 17,394 |
| Sirius XM Radio Inc 5.375% 20255 | 4,801 | 5,077 |
| Six Flags Entertainment Corp. 4.875% 20245 | 4,950 | 5,049 |
| Sotheby’s Holdings, Inc. 5.25% 20225 | 19,210 | 19,786 |
| Standard Pacific Corp. 8.375% 2021 | 14,775 | 17,291 |
| Tenneco Inc. 5.00% 2026 | 6,700 | 6,884 |
| Tesla, Inc. 5.30% 20255 | 18,475 | 18,088 |
| TI Automotive Ltd. 8.75% 20235 | 39,735 | 42,318 |
| Univision Communications Inc. 6.75% 20225 | 3,000 | 3,122 |
| Univision Communications Inc. 5.125% 20235 | 32,640 | 33,374 |
| Univision Communications Inc. 5.125% 20255 | 30,250 | 30,590 |
| Univision Communications Inc., Term Loan C5, (3-month USD-LIBOR + 2.75%) 3.985% 20242,3,4 | 1,475 | 1,463 |
| Warner Music Group 5.625% 20225 | 12,827 | 13,388 |
| Warner Music Group 6.75% 20225 | 8,000 | 8,430 |
| Warner Music Group 5.00% 20235 | 42,895 | 44,450 |
| Warner Music Group 4.875% 20245 | 15,675 | 16,184 |
| Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20235 | 25,211 | 26,062 |
| Wynn Las Vegas, LLC and Wynn Capital Corp. 5.50% 20255 | 53,655 | 56,002 |
| Wynn Las Vegas, LLC and Wynn Capital Corp. 5.25% 20275 | 5,075 | 5,176 |
| Wynn Macau, Ltd. 4.875% 20245 | 11,000 | 11,234 |
| ZF Friedrichshafen AG 4.00% 20205 | 2,935 | 3,041 |
| ZF Friedrichshafen AG 4.75% 20255 | 14,050 | 14,875 |
| 2,162,894 | ||
| Health care 12.10% | ||
| Acadia Healthcare Co., Inc. 5.625% 2023 | 3,900 | 4,115 |
| Alere Inc. 6.50% 2020 | 4,340 | 4,427 |
| Centene Corp. 5.625% 2021 | 27,190 | 28,351 |
| Centene Corp. 4.75% 2022 | 75,925 | 79,626 |
| Centene Corp. 6.125% 2024 | 33,900 | 36,739 |
| Centene Corp. 4.75% 2025 | 50,020 | 52,021 |
| Change Healthcare Holdings, LLC 5.75% 20255 | 17,000 | 17,382 |
| Community Health Systems Inc. 8.00% 2019 | 3,550 | 3,470 |
| Community Health Systems Inc. 6.25% 2023 | 7,650 | 7,583 |
American High-Income Trust — Page 5 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal?amount (000) | Value (000) |
| Concordia Healthcare Corp., Term Loan B, (3-month USD-LIBOR + 4.25%) 5.501% 20212,3,4 | $42,234 | $32,599 |
| Concordia Healthcare Corp. 9.00% 20225 | 4,525 | 3,552 |
| Concordia Healthcare Corp. 9.50% 20225 | 67,402 | 12,132 |
| Concordia Healthcare Corp. 7.00% 20235 | 46,016 | 7,708 |
| DaVita HealthCare Partners Inc. 5.125% 2024 | 12,840 | 12,808 |
| DaVita HealthCare Partners Inc. 5.00% 2025 | 19,625 | 19,404 |
| DJO Finance LLC 10.75% 2020 | 6,610 | 5,767 |
| DJO Finance LLC 8.125% 20215 | 39,150 | 37,682 |
| Eagle Holding Co II LLC 7.625% 20225,8 | 12,450 | 12,948 |
| Endo International PLC 5.75% 20225 | 52,599 | 46,419 |
| Endo International PLC 5.375% 20235 | 4,400 | 3,608 |
| Endo International PLC 6.00% 20235 | 55,580 | 46,131 |
| Endo International PLC 5.875% 20245 | 19,075 | 20,076 |
| Endo International PLC 6.00% 20255 | 20,025 | 16,320 |
| Fresenius Medical Care AG & Co. KGAA 5.875% 20225 | 6,850 | 7,704 |
| HCA Inc. 3.75% 2019 | 11,563 | 11,838 |
| HCA Inc. 6.50% 2020 | 18,305 | 19,975 |
| HCA Inc. 7.50% 2022 | 2,610 | 3,001 |
| HCA Inc. 4.75% 2023 | 2,160 | 2,292 |
| HCA Inc. 5.875% 2023 | 4,550 | 4,960 |
| HCA Inc. 5.00% 2024 | 28,285 | 30,194 |
| HCA Inc. 5.375% 2025 | 8,500 | 8,978 |
| HCA Inc. 5.25% 2026 | 23,375 | 25,245 |
| HCA Inc. 5.875% 2026 | 14,500 | 15,602 |
| HCA Inc. 4.50% 2027 | 14,500 | 14,862 |
| HCA Inc. 7.50% 2033 | 2,685 | 3,061 |
| HCA Inc. 7.75% 2036 | 1,795 | 2,051 |
| HCA Inc. 5.50% 2047 | 15,175 | 15,763 |
| Healthsouth Corp. 5.75% 2024 | 14,475 | 14,893 |
| Healthsouth Corp. 5.75% 2025 | 18,115 | 18,936 |
| IMS Health Holdings, Inc. 5.00% 20265 | 32,410 | 34,436 |
| inVentiv Health, Inc. 7.50% 20245 | 34,149 | 38,076 |
| Kindred Healthcare, Inc. 8.00% 2020 | 20,720 | 20,455 |
| Kindred Healthcare, Inc. 8.75% 2023 | 10,750 | 10,077 |
| Kinetic Concepts, Inc. 7.875% 20215 | 16,615 | 17,467 |
| Kinetic Concepts, Inc. 12.50% 20215 | 93,885 | 104,916 |
| Mallinckrodt PLC 4.875% 20205 | 29,915 | 29,915 |
| Mallinckrodt PLC 5.75% 20225 | 5,345 | 5,251 |
| Mallinckrodt PLC 5.625% 20235 | 11,986 | 11,222 |
| MEDNAX, Inc. 5.25% 20235 | 7,975 | 8,374 |
| Molina Healthcare, Inc. 5.375% 2022 | 102,136 | 105,772 |
| Molina Healthcare, Inc. 4.875% 20255 | 47,650 | 47,173 |
| Multiplan, Inc. 7.125% 20245 | 2,400 | 2,586 |
| PAREXEL International Corp. 6.375% 20255 | 15,320 | 15,320 |
| Prestige Brands International Inc. 6.375% 20245 | 14,010 | 15,131 |
| Quintiles Transnational Corp. 4.875% 20235 | 27,455 | 28,690 |
| Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)2,3,4,6,8,9 | 68,239 | 64,218 |
| Rotech Healthcare Inc., Term Loan A, (3-month USD-LIBOR + 4.25%) 5.583% 20182,3,4,6,9 | 24,864 | 24,740 |
| Rotech Healthcare Inc., Term Loan B, (3-month USD-LIBOR + 8.75%) 10.083% 20192,3,4,6,9 | 20,825 | 20,721 |
| Tenet Healthcare Corp. 4.375% 2021 | 28,088 | 28,615 |
| Tenet Healthcare Corp. 8.125% 2022 | 12,335 | 12,582 |
| Tenet Healthcare Corp. 6.75% 2023 | 33,430 | 32,135 |
| Tenet Healthcare Corp. 4.625% 20245 | 40,111 | 39,760 |
American High-Income Trust — Page 6 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal?amount (000) | Value (000) |
| Tenet Healthcare Corp. 5.125% 20255 | $23,072 | $22,812 |
| Tenet Healthcare Corp., First Lien, 4.75% 2020 | 17,010 | 17,605 |
| Tenet Healthcare Corp., First Lien, 6.00% 2020 | 89,965 | 96,102 |
| Tenet Healthcare Corp., First Lien, 4.50% 2021 | 28,730 | 29,440 |
| Teva Pharmaceutical Finance Company BV 2.80% 2023 | 5,000 | 4,786 |
| Teva Pharmaceutical Finance Company BV 3.15% 2026 | 6,250 | 5,771 |
| Valeant Pharmaceuticals International, Inc. 5.375% 20205 | 35,100 | 35,188 |
| Valeant Pharmaceuticals International, Inc. 6.375% 20205 | 145,428 | 145,928 |
| Valeant Pharmaceuticals International, Inc. 5.625% 20215 | 10,050 | 9,447 |
| Valeant Pharmaceuticals International, Inc. 7.50% 20215 | 51,930 | 51,930 |
| Valeant Pharmaceuticals International, Inc. 6.50% 20225 | 16,125 | 17,052 |
| Valeant Pharmaceuticals International, Inc. 7.25% 20225 | 9,750 | 9,543 |
| Valeant Pharmaceuticals International, Inc. 5.875% 20235 | 76,260 | 67,585 |
| Valeant Pharmaceuticals International, Inc. 7.00% 20245 | 33,500 | 35,761 |
| Valeant Pharmaceuticals International, Inc. 6.125% 20255 | 106,553 | 93,900 |
| Vizient Inc. 10.375% 20245 | 10,015 | 11,542 |
| WellCare Health Plans, Inc. 5.25% 2025 | 15,635 | 16,495 |
| 2,098,742 | ||
| Materials 11.73% | ||
| AK Steel Holding Corp. 7.625% 2021 | 39,900 | 41,696 |
| AK Steel Holding Corp. 7.50% 2023 | 5,700 | 6,227 |
| AK Steel Holding Corp. 6.375% 2025 | 11,375 | 11,261 |
| AK Steel Holding Corp. 7.00% 2027 | 7,500 | 7,678 |
| Aleris International, Inc. 7.875% 2020 | 20,836 | 20,940 |
| Aleris International, Inc. 9.50% 20215 | 36,770 | 39,344 |
| Anglo American Capital PLC 4.125% 20215 | 3,400 | 3,541 |
| Apollo Global Management, LLC 7.875% 2023 | 2,000 | 1,310 |
| ArcelorMittal 6.125% 2025 | 10,500 | 12,128 |
| ArcelorMittal 7.25% 2041 | 54,985 | 65,363 |
| Ardagh Group SA 7.125% 20238 | 3,300 | 3,531 |
| Ardagh Packaging Finance 4.25% 20225 | 6,425 | 6,607 |
| Ardagh Packaging Finance 4.625% 20235 | 980 | 1,010 |
| Ardagh Packaging Finance 6.00% 20255 | 9,500 | 10,082 |
| Axalta Coating Systems LLC 4.875% 20245 | 7,250 | 7,576 |
| Ball Corp. 4.375% 2020 | 17,775 | 18,730 |
| Ball Corp. 5.25% 2025 | 2,250 | 2,478 |
| Berry Plastics Corp. 5.50% 2022 | 4,800 | 5,017 |
| Blue Cube Spinco Inc. (Olin Corp.) 9.75% 2023 | 4,820 | 5,880 |
| Blue Cube Spinco Inc. (Olin Corp.) 10.00% 2025 | 4,260 | 5,224 |
| Building Materials Corp. 6.00% 20255 | 4,650 | 5,096 |
| BWAY Holding Co., 7.25% 20255 | 32,555 | 33,613 |
| Bway Parent Co. Inc., 5.50% 20245 | 7,020 | 7,345 |
| CEMEX SAB de CV 7.75% 20265 | 10,475 | 12,062 |
| CF Industries, Inc. 3.45% 2023 | 2,060 | 2,039 |
| CF Industries, Inc. 4.50% 20265 | 11,025 | 11,553 |
| CF Industries, Inc. 4.95% 2043 | 33,680 | 31,322 |
| CF Industries, Inc. 5.375% 2044 | 14,660 | 14,055 |
| Chemours Co. 6.625% 2023 | 33,658 | 35,972 |
| Chemours Co. 7.00% 2025 | 22,595 | 25,137 |
| Chemours Co. 5.375% 2027 | 8,190 | 8,538 |
| Cliffs Natural Resources Inc. 4.80% 2020 | 1,320 | 1,274 |
| Cliffs Natural Resources Inc. 4.875% 2021 | 6,400 | 6,144 |
| Cliffs Natural Resources Inc. 5.75% 20255 | 163,685 | 157,751 |
American High-Income Trust — Page 7 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Materials (continued) | Principal?amount (000) | Value (000) |
| Cliffs Natural Resources Inc. 6.25% 2040 | $25,278 | $21,218 |
| Commercial Metals Co. 5.375% 2027 | 5,000 | 5,263 |
| Consolidated Energy Finance SA 6.875% 20255 | 39,750 | 41,787 |
| Crown Holdings, Inc. 4.50% 2023 | 3,000 | 3,165 |
| Crown Holdings, Inc. 4.25% 2026 | 3,000 | 3,038 |
| Crown Holdings, Inc. 7.375% 2026 | 2,000 | 2,360 |
| CVR Partners, LP 9.25% 20235 | 13,685 | 14,626 |
| First Quantum Minerals Ltd. 7.00% 20215 | 122,528 | 126,663 |
| First Quantum Minerals Ltd. 7.25% 20225 | 25,900 | 26,774 |
| First Quantum Minerals Ltd. 7.25% 20235 | 23,925 | 24,703 |
| First Quantum Minerals Ltd. 7.50% 20255 | 101,500 | 104,164 |
| Flex Acquisition Company, Inc. 6.875% 20255 | 17,875 | 18,590 |
| FMG Resources 9.75% 20225 | 57,240 | 64,510 |
| Freeport-McMoRan Inc. 6.50% 2020 | 6,000 | 6,146 |
| Freeport-McMoRan Inc. 3.55% 2022 | 51,115 | 50,460 |
| Freeport-McMoRan Inc. 3.875% 2023 | 4,000 | 3,960 |
| Freeport-McMoRan Inc. 6.875% 2023 | 5,000 | 5,475 |
| Freeport-McMoRan Inc. 5.40% 2034 | 12,225 | 11,736 |
| Georgia Gulf Corp. 4.625% 2021 | 23,617 | 24,444 |
| Georgia Gulf Corp. 4.875% 2023 | 6,300 | 6,552 |
| H.I.G. Capital, L.L.C. 6.75% 20245 | 50,288 | 50,225 |
| Hexion Inc. 6.625% 2020 | 29,720 | 26,748 |
| Hexion Inc. 10.375% 20225 | 4,900 | 4,729 |
| Huntsman Corp. 5.75% 20255 | 27,665 | 28,841 |
| Huntsman International LLC 4.875% 2020 | 23,800 | 25,317 |
| INEOS Group Holdings SA 5.625% 20245 | 6,250 | 6,508 |
| Kraton Corp. 7.00% 20255 | 15,625 | 16,836 |
| Nova Chemicals Corp 4.875% 20245 | 13,825 | 14,032 |
| Nova Chemicals Corp 5.25% 20275 | 3,650 | 3,696 |
| Novelis Corp. 6.25% 20245 | 18,330 | 19,159 |
| Novelis Corp. 5.875% 20265 | 26,575 | 27,040 |
| Olin Corp. 5.125% 2027 | 9,197 | 9,634 |
| Owens-Illinois, Inc. 5.00% 20225 | 3,920 | 4,165 |
| Owens-Illinois, Inc. 5.875% 20235 | 39,135 | 43,318 |
| Owens-Illinois, Inc. 6.375% 20255 | 14,470 | 16,396 |
| Plastipak Holdings, Inc. 6.50% 20215 | 6,000 | 6,207 |
| Platform Specialty Products Corp. 10.375% 20215 | 26,180 | 28,602 |
| Platform Specialty Products Corp. 6.50% 20225 | 33,500 | 34,798 |
| Rayonier Advanced Materials Inc. 5.50% 20245 | 50,830 | 49,496 |
| Reynolds Group Inc. 5.75% 2020 | 44,750 | 45,591 |
| Reynolds Group Inc. 7.00% 20245 | 18,245 | 19,465 |
| Ryerson Inc. 11.00% 20225 | 65,826 | 73,890 |
| Scotts Miracle-Gro Co. 5.25% 2026 | 4,650 | 4,917 |
| Sealed Air Corp. 4.875% 20225 | 6,250 | 6,672 |
| Sealed Air Corp. 5.25% 20235 | 5,920 | 6,408 |
| Sealed Air Corp. 5.125% 20245 | 3,510 | 3,795 |
| Smurfit Capital Funding PLC 7.50% 2025 | 7,965 | 9,746 |
| SPCM SA 4.875% 20255 | 26,750 | 27,753 |
| Steel Dynamics, Inc. 4.125% 20255 | 9,825 | 9,929 |
| Summit Materials, Inc. 8.50% 2022 | 3,925 | 4,435 |
| Summit Materials, Inc. 6.125% 2023 | 12,660 | 13,420 |
| Summit Materials, Inc. 5.125% 20255 | 24,750 | 25,564 |
| SunCoke Energy Partners, LP, 7.50% 20255 | 8,925 | 9,260 |
| Teck Resources Ltd. 3.75% 2023 | 4,050 | 4,117 |
American High-Income Trust — Page 8 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Materials (continued) | Principal?amount (000) | Value (000) |
| Teck Resources Ltd. 8.50% 20245 | $2,775 | $3,191 |
| Teck Resources Ltd. 5.20% 2042 | 3,900 | 3,900 |
| Tembec Industries Inc. 9.00% 20195 | 6,958 | 7,160 |
| Trinseo SA 5.375% 20255 | 15,210 | 15,685 |
| Tronox Ltd. 5.75% 20255 | 14,920 | 15,330 |
| United States Steel Corp. 7.375% 2020 | 27,055 | 29,625 |
| United States Steel Corp. 8.375% 20215 | 13,020 | 14,420 |
| United States Steel Corp. 6.875% 2025 | 22,950 | 23,581 |
| Vale Overseas Ltd. 6.875% 2039 | 13,185 | 15,136 |
| Valvoline Inc. 4.375% 20255 | 17,050 | 17,371 |
| Zekelman Industries Inc. 9.875% 20235 | 13,395 | 15,136 |
| 2,034,402 | ||
| Telecommunication services 9.93% | ||
| Altice NV 6.625% 20235 | 9,460 | 10,051 |
| Altice NV 5.50% 20265 | 12,475 | 13,192 |
| Altice NV 7.50% 20265 | 9,000 | 9,922 |
| CenturyLink, Inc. 6.75% 2023 | 16,425 | 16,677 |
| CenturyLink, Inc. 7.50% 2024 | 27,620 | 28,662 |
| Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20205 | 63,088 | 64,586 |
| Cequel Communications Holdings I, LLC and Cequel Capital Corp. 7.75% 20255 | 1,500 | 1,665 |
| Cincinnati Bell Inc. 7.00% 20245 | 8,600 | 8,428 |
| Colorado Buyer Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.57% 20252,3,4 | 12,413 | 12,568 |
| Digicel Group Ltd. 8.25% 20205 | 24,575 | 24,099 |
| Digicel Group Ltd. 6.00% 20215 | 5,450 | 5,340 |
| Frontier Communications Corp. 8.50% 2020 | 10,000 | 9,725 |
| Frontier Communications Corp. 8.875% 2020 | 45,300 | 43,859 |
| Frontier Communications Corp. 9.25% 2021 | 29,575 | 26,035 |
| Frontier Communications Corp. 8.75% 2022 | 1,150 | 943 |
| Frontier Communications Corp. 10.50% 2022 | 113,610 | 99,409 |
| Frontier Communications Corp. 7.625% 2024 | 4,923 | 3,766 |
| Frontier Communications Corp. 11.00% 2025 | 127,387 | 108,916 |
| Inmarsat PLC 4.875% 20225 | 31,115 | 31,893 |
| Inmarsat PLC 6.50% 20245 | 28,925 | 31,239 |
| Intelsat Jackson Holding Co. 7.25% 2020 | 31,825 | 30,791 |
| Intelsat Jackson Holding Co. 5.50% 2023 | 25,050 | 21,355 |
| Level 3 Communications, Inc. 5.125% 2023 | 14,225 | 14,501 |
| Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 9.97% 2020 (100% PIK)2,3,4,8 | 118,290 | 111,291 |
| MetroPCS Wireless, Inc. 6.625% 2023 | 37,760 | 39,838 |
| Neptune Finco Corp. (Altice NV) 10.125% 20235 | 12,350 | 14,280 |
| Neptune Finco Corp. (Altice NV) 6.625% 20255 | 12,800 | 14,048 |
| Neptune Finco Corp. (Altice NV) 10.875% 20255 | 2,098 | 2,599 |
| Numericable Group SA 6.00% 20225 | 10,235 | 10,708 |
| Numericable Group SA 7.375% 20265 | 23,625 | 25,545 |
| SoftBank Group Corp. 4.50% 20205 | 66,575 | 68,850 |
| Softbank Group Corp., Subordinated 6.875% (undated) | 13,000 | 13,408 |
| Sprint Corp. 9.00% 20185 | 9,660 | 10,384 |
| Sprint Corp. 7.00% 2020 | 11,000 | 12,046 |
| Sprint Corp. 7.25% 2021 | 29,255 | 32,583 |
| Sprint Corp. 11.50% 2021 | 75,355 | 96,158 |
| Sprint Corp. 7.875% 2023 | 45,970 | 53,440 |
| Sprint Corp. 7.125% 2024 | 24,925 | 28,103 |
| Sprint Corp. 6.875% 2028 | 88,575 | 99,425 |
| T-Mobile US, Inc. 6.375% 2025 | 28,025 | 30,245 |
American High-Income Trust — Page 9 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Telecommunication services (continued) | Principal?amount (000) | Value (000) |
| T-Mobile US, Inc. 6.50% 2026 | $90,495 | $100,110 |
| Trilogy International Partners, LLC 8.875% 20225 | 37,575 | 39,266 |
| UPCB Finance IV Ltd. 5.375% 20255 | 6,700 | 7,001 |
| Wind Acquisition SA 4.75% 20205 | 14,725 | 14,923 |
| Wind Acquisition SA 7.375% 20215 | 92,350 | 96,102 |
| Windstream Holdings, Inc. 7.75% 2020 | 2,500 | 2,012 |
| Windstream Holdings, Inc. 7.75% 2021 | 57,877 | 43,408 |
| Windstream Holdings, Inc. 7.50% 2022 | 5,375 | 4,045 |
| Zayo Group Holdings, Inc. 6.00% 2023 | 8,800 | 9,358 |
| Zayo Group Holdings, Inc. 6.375% 2025 | 27,625 | 29,873 |
| Zayo Group Holdings, Inc. 5.75% 20275 | 42,075 | 44,705 |
| Ziggo Bond Finance BV 5.875% 20255 | 6,880 | 7,207 |
| Ziggo Bond Finance BV 5.50% 20275 | 42,200 | 43,347 |
| 1,721,930 | ||
| Industrials 9.71% | ||
| ACCO Brands Corp. 5.25% 20245 | 7,225 | 7,514 |
| ADT Corp. 3.50% 2022 | 10,750 | 10,804 |
| Alcoa Inc. 5.72% 2019 | 747 | 785 |
| Allison Transmission Holdings, Inc. 5.00% 20245 | 23,411 | 24,356 |
| Allison Transmission Holdings, Inc. 4.75% 20275 | 925 | 933 |
| American Airlines, Inc., 5.50% 20195 | 27,650 | 29,102 |
| APX Group, Inc. 8.75% 2020 | 10,790 | 11,154 |
| APX Group, Inc. 7.625% 20235 | 20,460 | 21,611 |
| ARAMARK Corp. 5.125% 2024 | 17,150 | 18,243 |
| Ashtead Group PLC 4.125% 20255 | 12,290 | 12,674 |
| Ashtead Group PLC 4.375% 20275 | 5,000 | 5,156 |
| Associated Materials, LLC 9.00% 20245 | 84,935 | 92,473 |
| Avis Budget Group, Inc. 5.50% 2023 | 12,785 | 13,121 |
| Bohai Financial Investment Holding Co., Ltd. 5.25% 20225 | 52,725 | 54,972 |
| Bohai Financial Investment Holding Co., Ltd. 5.50% 20245 | 13,050 | 13,735 |
| Brand Energy 8.5% 20255 | 28,775 | 31,221 |
| Brunswick Rail Finance Ltd. 6.50% 2017 | 29,251 | 25,180 |
| Brunswick Rail Finance Ltd. 6.50% 20175 | 9,651 | 8,308 |
| Builders FirstSource, Inc. 10.75% 20235 | 36,565 | 41,867 |
| Builders FirstSource, Inc. 5.625% 20245 | 59,395 | 63,033 |
| CD&R Waterworks Merger Sub LLC, Term Loan B, (3-month USD-LIBOR + 3.00%) 4.455% 20242,3,4,5 | 5,000 | 5,026 |
| CD&R Waterworks Merger Sub, LLC 6.125% 20255 | 18,000 | 18,635 |
| CEVA Group PLC 7.00% 20215,6 | 1,400 | 1,365 |
| CEVA Group PLC 9.00% 20215,6 | 14,675 | 13,611 |
| CEVA Group PLC, Apollo Global Securities LLC LOC, (3-month USD-LIBOR + 5.50%) 6.50% 20212,3,4,6 | 9,247 | 8,970 |
| CEVA Logistics Canada, ULC, Term Loan, (3-month USD-LIBOR + 5.50%) 6.814% 20212,3,4,6 | 1,625 | 1,576 |
| CEVA Logistics Holdings BV, Term Loan, (3-month USD-LIBOR + 5.50%) 6.814% 20212,3,4,6 | 9,413 | 9,131 |
| CEVA Logistics U.S. Holdings Inc., Term Loan B, (3-month USD-LIBOR + 5.50%) 6.814% 20212,3,4,6 | 12,978 | 12,588 |
| Cloud Crane LLC, 10.125% 20245 | 10,865 | 12,087 |
| CNH Capital LLC 4.875% 2021 | 2,350 | 2,503 |
| Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 162 | 163 |
| Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 162 | 166 |
| Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 1,453 | 1,506 |
| Continental Airlines, Inc., Series 2001-1, Class A1, 6.703% 20223 | 989 | 1,053 |
| Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20223 | 1,621 | 1,710 |
| Continental Airlines, Inc., Series 2000-2, Class A1, 7.707% 20223 | 1,009 | 1,091 |
| Continental Airlines, Inc., Series 2000-1, Class A1, 8.048% 20223 | 119 | 131 |
| Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223 | 1 | 1 |
American High-Income Trust — Page 10 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Industrials (continued) | Principal?amount (000) | Value (000) |
| Corporate Risk Holdings LLC 9.50% 20195,6 | $137,693 | $146,643 |
| Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)5,6,8,9 | 13,361 | 14,296 |
| Covanta Holding Corp. 5.875% 2024 | 29,570 | 29,422 |
| Covanta Holding Corp. 5.875% 2025 | 8,925 | 8,802 |
| DAE Aviation Holdings, Inc. 10.00% 20235 | 115,815 | 128,844 |
| Deck Chassis Acquisition Inc. 10.00% 20235 | 69,260 | 78,091 |
| Delta Air Lines, Inc., Series 2002-1, Class G1, MBIA insured, 6.718% 20243 | 6,811 | 7,671 |
| Dubai Aerospace Enterprise (DAE) Ltd. 4.5% 20225 | 5,000 | 5,137 |
| Dubai Aerospace Enterprise (DAE) Ltd. 5.0% 20245 | 15,000 | 15,412 |
| Euramax International, Inc. 12.00% 20205 | 42,850 | 46,814 |
| GFL Environmental Inc., 5.625% 20225 | 11,175 | 11,678 |
| Hardwoods Acquisition Inc 7.50% 20215 | 43,066 | 40,051 |
| HD Supply, Inc. 5.75% 20245 | 4,700 | 5,041 |
| HDTFS Inc. 6.75% 2019 | 8,590 | 8,574 |
| Hertz Global Holdings Inc. 7.375% 2021 | 7,935 | 8,004 |
| Hertz Global Holdings Inc. 7.625% 20225 | 35,800 | 37,008 |
| KAR Auction Services, Inc. 5.125% 20255 | 5,000 | 5,213 |
| KLX Inc. 5.875% 20225 | 16,485 | 17,333 |
| LSC Communications, Inc. 8.75% 20235 | 41,745 | 43,154 |
| LSC Communications, Inc., Term Loan B, (3-month USD-LIBOR + 6.00%) 7.235% 20222,3,4 | 24,190 | 24,372 |
| Multi-Color Corp. 4.875% 20255 | 37,160 | 37,717 |
| Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20215 | 31,600 | 26,307 |
| Nielsen Finance LLC and Nielsen Finance Co. 5.00% 20225 | 4,800 | 4,986 |
| Ply Gem Industries, Inc. 6.50% 2022 | 14,320 | 15,040 |
| Ply Gem Industries, Inc. 6.50% 2022 | 13,645 | 14,280 |
| Prime Security Services Borrower, LLC 9.25% 20235 | 31,300 | 34,620 |
| PrimeSource Building Products Inc 9.00% 20235 | 20,211 | 21,575 |
| R.R. Donnelley & Sons Co. 7.625% 2020 | 4,054 | 4,399 |
| R.R. Donnelley & Sons Co. 7.875% 2021 | 40,150 | 42,559 |
| R.R. Donnelley & Sons Co. 6.50% 2023 | 22,350 | 21,791 |
| Sensata Technologies Holding NV 6.25% 20265 | 7,000 | 7,700 |
| Standard Aero Holdings, Inc., Term Loan B, 4.99% 20222,3,4 | 6,169 | 6,216 |
| TransDigm Inc. 5.50% 2020 | 51,910 | 52,754 |
| United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20213,5 | 2,585 | 2,753 |
| United Continental Holdings, Inc. 6.00% 2020 | 14,150 | 15,494 |
| United Rentals, Inc. 7.625% 2022 | 2,515 | 2,621 |
| United Rentals, Inc. 4.625% 2025 | 24,600 | 24,969 |
| United Rentals, Inc. 5.875% 2026 | 3,500 | 3,815 |
| United Rentals, Inc. 5.50% 2027 | 5,000 | 5,344 |
| United Rentals, Inc. 4.875% 2028 | 4,000 | 4,025 |
| Virgin Australia Holdings Ltd. 8.50% 20195 | 45,305 | 47,853 |
| Virgin Australia Holdings Ltd. 7.875% 20215 | 27,125 | 28,312 |
| 1,684,245 | ||
| Information technology 7.39% | ||
| Alcatel-Lucent USA Inc. 6.45% 2029 | 16,200 | 18,432 |
| Almonde Inc., Term Loan-B, (3-month USD-LIBOR + 3.50%) 4.817% 20242,3,4 | 5,650 | 5,680 |
| Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.567% 20252,3,4 | 43,275 | 44,233 |
| Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 4.25% 20242,3,4 | 3,575 | 3,614 |
| Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 8.00% 20252,3,4 | 22,700 | 23,353 |
| Blackboard Inc. 9.75% 20215 | 415 | 372 |
| Blackboard Inc., Term Loan B4, (3-month USD-LIBOR + 5.00%) 6.304% 20212,3,4 | 24,259 | 23,509 |
| BMC Software, Inc. 9.00% 20195,8 | 14,125 | 14,143 |
| BMC Software, Inc. 8.125% 20215 | 40,056 | 41,208 |
American High-Income Trust — Page 11 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Information technology (continued) | Principal?amount (000) | Value (000) |
| BMC Software, Inc., Term Loan B, (3-month USD-LIBOR + 4.00%) 5.235% 20222,3,4 | $9,167 | $9,229 |
| Camelot Finance SA 7.875% 20245 | 52,975 | 57,213 |
| Cardtronics Inc 5.50% 20255 | 13,075 | 13,409 |
| CCC Information Services Inc., Term Loan (3-month USD-LIBOR + 6.75%) 7.958% 20252,3,4 | 7,300 | 7,537 |
| CDW Corp. 5.00% 2025 | 6,500 | 6,858 |
| CommScope Holding Co., Inc. 6.00% 20255 | 4,750 | 5,100 |
| CommScope Holding Co., Inc. 5.00% 20275 | 6,650 | 6,683 |
| Dell Inc. 2.65% 2020 | 19,250 | 19,063 |
| EchoStar Corp. 6.625% 2026 | 23,380 | 25,075 |
| Ellucian, Inc. 9.00% 20235 | 7,050 | 7,341 |
| First Data Corp. 5.375% 20235 | 17,650 | 18,506 |
| First Data Corp. 7.00% 20235 | 71,500 | 76,526 |
| First Data Corp. 5.00% 20245 | 29,425 | 30,662 |
| First Data Corp. 5.75% 20245 | 8,150 | 8,557 |
| Gartner, Inc. 5.125% 20255 | 16,925 | 17,898 |
| Genesys Telecommunications Laboratories, Inc. 10.00% 20245 | 41,745 | 47,276 |
| Genesys Telecommunications Laboratories, Inc., Term Loan B2, (3-month USD-LIBOR + 3.75%) 5.083% 20232,3,4 | 7,965 | 8,019 |
| Gogo Inc. 12.50% 20225 | 91,200 | 104,196 |
| GTT Communications, Inc. 7.875% 20245 | 17,200 | 18,318 |
| Hughes Satellite Systems Corp. 7.625% 2021 | 9,850 | 11,222 |
| Infor (US), Inc. 5.75% 20205 | 7,135 | 7,349 |
| Infor (US), Inc. 6.50% 2022 | 45,300 | 47,197 |
| Infor Software 7.125% 20215,8 | 33,400 | 34,162 |
| Internet Brands, Inc., Term Loan, (3-month USD-LIBOR + 3.75%) 5.07% 20242,3,4 | 13,435 | 13,381 |
| Internet Brands, Inc., Term Loan, (3-month USD-LIBOR + 7.50%) 8.82% 20252,3,4 | 44,840 | 44,756 |
| j2 Global, Inc. 6.00% 20255 | 9,795 | 10,297 |
| JDA Software Group, Inc. 7.375% 20245 | 7,375 | 7,569 |
| JDA Software Group, Inc., Term Loan B, (3-month USD-LIBOR + 3.50%) 4.735% 20232,3,4 | 5,856 | 5,895 |
| Kronos Inc., Term Loan, (3-month USD-LIBOR + 3.50%) 4.812% 20232,3,4 | 17,195 | 17,312 |
| Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.561% 20242,3,4 | 92,910 | 96,092 |
| McAfee, LLC, Term Loan, (3-month USD-LIBOR + 4.50%) 5.50% 20242,3,4 | 38,000 | 38,223 |
| McAfee, LLC, Term Loan, (3-month USD-LIBOR + 8.50%) 9.50% 20252,3,4 | 8,950 | 8,984 |
| NXP BV and NXP Funding LLC 4.125% 20205 | 7,000 | 7,341 |
| NXP BV and NXP Funding LLC 4.125% 20215 | 1,975 | 2,071 |
| PE Cortes NP Holdings LLC 12.00% 20225,8 | 12,775 | 14,420 |
| PE Cortes NP Holdings LLC 9.25% 20245 | 11,525 | 13,023 |
| Qorvo, Inc. 6.75% 2023 | 5,000 | 5,463 |
| Qorvo, Inc. 7.00% 2025 | 14,550 | 16,660 |
| Solera Holdings, Inc. 10.50% 20245 | 41,350 | 47,282 |
| Symantec Corp 5.00% 20255 | 15,050 | 15,774 |
| Tempo Acquisition LLC 6.75% 20255 | 16,150 | 16,352 |
| Unisys Corp. 10.75% 20225 | 76,500 | 85,106 |
| VeriSign, Inc. 4.625% 2023 | 4,600 | 4,773 |
| VeriSign, Inc. 5.25% 2025 | 18,675 | 20,262 |
| VeriSign, Inc. 4.75% 2027 | 21,825 | 22,589 |
| Western Digital Corp. 7.375% 20235 | 2,175 | 2,388 |
| Western Digital Corp. 10.50% 2024 | 4,250 | 5,004 |
| 1,282,957 | ||
| Utilities 4.23% | ||
| AES Corp. 8.00% 2020 | 2,777 | 3,201 |
| AES Corp. 7.375% 2021 | 72,601 | 83,317 |
| AES Corp. 4.875% 2023 | 14,540 | 14,976 |
American High-Income Trust — Page 12 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal?amount (000) | Value (000) |
| AES Corp. 5.50% 2024 | $33,135 | $34,750 |
| AES Corp. 7.75% 20245 | 7,900 | 8,487 |
| AES Corp. 5.50% 2025 | 28,755 | 30,372 |
| AES Corp. 6.00% 2026 | 26,650 | 28,782 |
| AES Corp. 5.125% 2027 | 21,515 | 22,107 |
| AmeriGas Partners, LP 5.50% 2025 | 29,900 | 30,872 |
| Calpine Corp. 6.00% 20225 | 1,775 | 1,844 |
| Calpine Corp. 5.375% 2023 | 36,285 | 35,474 |
| Calpine Corp. 5.875% 20245 | 28,125 | 29,216 |
| Calpine Corp. 5.75% 2025 | 18,365 | 17,424 |
| Calpine Corp. 5.25% 20265 | 41,185 | 41,185 |
| Dominion Resources, Inc. 2.962% 2019 | 1,500 | 1,522 |
| Dynegy Finance Inc. 7.375% 2022 | 47,380 | 49,631 |
| Dynegy Finance Inc. 7.625% 2024 | 9,765 | 10,168 |
| Dynegy Inc. 8.125% 20265 | 13,600 | 14,025 |
| Emera Inc. 6.75% 2076 | 28,725 | 32,818 |
| Enel Società per Azioni 8.75% 20735 | 16,112 | 19,556 |
| IPALCO Enterprises, Inc. 3.70% 20245 | 1,850 | 1,856 |
| Mississippi Power Co. 4.25% 2042 | 7,740 | 7,379 |
| NRG Energy, Inc. 6.25% 2022 | 58,565 | 61,786 |
| NRG Energy, Inc. 6.625% 2023 | 4,000 | 4,145 |
| NRG Energy, Inc. 7.25% 2026 | 8,450 | 9,105 |
| NRG Energy, Inc. 6.625% 2027 | 21,750 | 22,892 |
| Talen Energy Corp. 6.50% 2018 | 29,761 | 30,207 |
| Talen Energy Corp. 4.625% 20195 | 50,110 | 49,609 |
| TEX Operations Co. LLC, Term Loan B, (3-month USD-LIBOR + 2.75%) 3.985% 20232,3,4 | 30,084 | 30,181 |
| TEX Operations Co. LLC, Term Loan C, (3-month USD-LIBOR + 2.75%) 3.982% 20232,3,4 | 6,913 | 6,935 |
| 733,822 | ||
| Financials 3.06% | ||
| Ally Financial Inc. 3.75% 2019 | 7,000 | 7,172 |
| Ally Financial Inc. 8.00% 2020 | 8,825 | 9,950 |
| Ally Financial Inc. 5.125% 2024 | 13,875 | 15,078 |
| Ally Financial Inc. 8.00% 2031 | 15,000 | 19,387 |
| Bank of America Corp., Series M, junior subordinated 8.125% noncumulative (undated) | 11,550 | 11,925 |
| Carlyle Group LP 6.375% 20225 | 7,150 | 7,454 |
| Carlyle Group LP 6.25% 20255 | 6,105 | 6,242 |
| CIT Group Inc. 3.875% 2019 | 66,435 | 67,847 |
| CIT Group Inc., Series C, 5.50% 20195 | 6,012 | 6,298 |
| Fortress Investment Group LLC 6.75% 20225 | 16,950 | 17,713 |
| General Motors Acceptance Corp. 7.50% 2020 | 13,225 | 14,911 |
| Hub International Ltd., 7.875% 20215 | 6,250 | 6,516 |
| Icahn Enterprises Finance Corp. 6.25% 2022 | 12,400 | 12,958 |
| International Lease Finance Corp. 8.25% 2020 | 5,900 | 6,908 |
| iStar Financial Inc. 4.00% 2017 | 13,600 | 13,612 |
| iStar Financial Inc. 4.875% 2018 | 14,300 | 14,484 |
| iStar Financial Inc. 6.50% 2021 | 8,000 | 8,380 |
| Jefferies Finance, LLC 7.25% 20245 | 15,875 | 15,954 |
| JPMorgan Chase & Co., Series I, junior subordinated 7.90% 2049 | 23,405 | 24,136 |
| Ladder Capital Corp. 5.25% 20255 | 15,400 | 15,294 |
| Liberty Mutual Group Inc., Series A, 7.80% 20875 | 9,190 | 11,625 |
| LPL Financial Holdings Inc. 5.75% 20255 | 21,300 | 22,152 |
| MetLife, Inc. 7.875% 20675 | 13,950 | 18,763 |
| MGIC Investment Corp. 5.75% 2023 | 15,225 | 16,786 |
American High-Income Trust — Page 13 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials (continued) | Principal?amount (000) | Value (000) |
| Navient Corp. 4.875% 2019 | $35,245 | $36,567 |
| Navient Corp. 6.50% 2022 | 10,925 | 11,601 |
| Navient Corp. 5.50% 2023 | 23,215 | 23,592 |
| Navient Corp. 6.75% 2025 | 14,000 | 14,595 |
| OneMain Financial Holdings, LLC 6.75% 20195 | 2,250 | 2,340 |
| OneMain Financial Holdings, LLC 7.25% 20215 | 6,755 | 7,067 |
| Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated)5 | 15,376 | 17,567 |
| Springleaf Finance Corp. 8.25% 2020 | 14,150 | 16,025 |
| Starwood Property Trust, Inc. 5.00% 2021 | 15,175 | 15,877 |
| Wells Fargo & Co., Series K, junior subordinated 7.98% 2049 | 13,980 | 14,417 |
| 531,193 | ||
| Real estate 2.45% | ||
| Communications Sales & Leasing, Inc. 6.00% 20235 | 25,530 | 24,509 |
| Communications Sales & Leasing, Inc. 8.25% 2023 | 21,563 | 19,137 |
| Communications Sales & Leasing, Inc. 7.125% 20245 | 3,525 | 2,994 |
| Crescent Resources 8.875% 20215 | 15,400 | 16,401 |
| Crown Castle International Corp. 4.875% 2022 | 2,350 | 2,560 |
| Equinix, Inc. 5.75% 2025 | 5,450 | 5,893 |
| Equinix, Inc. 5.875% 2026 | 20,550 | 22,631 |
| Equinix, Inc. 5.375% 2027 | 35,080 | 38,237 |
| Gaming and Leisure Properties, Inc. 4.375% 2021 | 3,500 | 3,649 |
| Gaming and Leisure Properties, Inc. 5.375% 2026 | 8,175 | 8,941 |
| Howard Hughes Corp. 5.375% 20255 | 81,225 | 83,053 |
| Iron Mountain Inc. 6.00% 2023 | 5,800 | 6,170 |
| Iron Mountain Inc. 5.75% 2024 | 33,800 | 35,025 |
| Iron Mountain Inc. 4.875% 20275 | 32,365 | 33,134 |
| iStar Financial Inc. 5.00% 2019 | 20,300 | 20,579 |
| iStar Inc. 6.00% 2022 | 4,000 | 4,150 |
| Medical Properties Trust, Inc. 5.00% 2027 | 7,000 | 7,192 |
| Realogy Corp. 4.50% 20195 | 30,660 | 31,580 |
| Realogy Corp. 4.875% 20235 | 50,900 | 52,554 |
| SBA Communications Corp. 4.00% 20225 | 2,500 | 2,512 |
| SBA Communications Corp. 4.875% 2022 | 4,800 | 4,968 |
| 425,869 | ||
| Consumer staples 2.14% | ||
| B&G Foods, Inc. 4.625% 2021 | 5,250 | 5,362 |
| B&G Foods, Inc. 5.25% 2025 | 22,825 | 23,339 |
| BJ’s Wholesale Club, Term Loan B, (3-month USD-LIBOR + 3.75%) 4.982% 20242,3,4 | 22,844 | 21,948 |
| BJ’s Wholesale Club, Term Loan, (3-month USD-LIBOR + 7.50%) 8.74% 20252,3,4 | 68,415 | 65,678 |
| Central Garden & Pet Co. 6.125% 2023 | 4,300 | 4,601 |
| Chobani LLC 7.50% 20255 | 15,770 | 17,248 |
| Constellation Brands, Inc. 6.00% 2022 | 5,250 | 6,007 |
| Constellation Brands, Inc. 4.75% 2025 | 625 | 683 |
| Cott Beverages Inc. 5.375% 2022 | 7,000 | 7,324 |
| Cott Beverages Inc. 5.50% 20255 | 11,900 | 12,412 |
| Darling Ingredients Inc. 5.375% 2022 | 14,550 | 15,123 |
| First Quality Enterprises, Inc. 5.00% 20255 | 5,000 | 5,169 |
| Herbalife Ltd., Term Loan, (3-month USD-LIBOR + 5.50%) 6.735% 20232,3,4 | 34,554 | 34,905 |
| Kronos Acquisition Holdings Inc. 9.00% 20235 | 11,570 | 11,310 |
| Lamb Weston Holdings, Inc. 4.625% 20245 | 7,465 | 7,820 |
| Pilgrim’s Pride Corp. 5.75% 20255 | 17,805 | 18,428 |
| Pilgrim’s Pride Corp. 5.875% 20275 | 10,420 | 10,707 |
American High-Income Trust — Page 14 of 19
| Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer staples (continued) | Principal?amount (000) | Value (000) |
| Pinnacle Foods Inc. 5.875% 2024 | $9,525 | $10,144 |
| Post Holdings, Inc. 6.00% 20225 | 5,250 | 5,519 |
| Post Holdings, Inc. 5.50% 20255 | 10,000 | 10,400 |
| Post Holdings, Inc. 8.00% 20255 | 8,400 | 9,534 |
| Post Holdings, Inc. 5.00% 20265 | 9,385 | 9,391 |
| Post Holdings, Inc. 5.75% 20275 | 7,000 | 7,245 |
| Reynolds American Inc. 5.85% 2045 | 7,850 | 9,633 |
| Spectrum Brands Inc. 6.625% 2022 | 3,500 | 3,657 |
| Spectrum Brands Inc. 6.125% 2024 | 4,750 | 5,112 |
| Spectrum Brands Inc. 5.75% 2025 | 3,000 | 3,210 |
| SUPERVALU Inc. 6.75% 2021 | 8,250 | 7,858 |
| TreeHouse Foods, Inc. 6.00% 20245 | 6,975 | 7,489 |
| Vector Group Ltd. 6.125% 20255 | 14,300 | 14,836 |
| 372,092 | ||
| Total corporate bonds & notes | 15,933,016 | |
| U.S. Treasury bonds & notes 1.07% U.S. Treasury 1.07% | ||
| U.S. Treasury 1.25% 2019 | 25,000 | 24,929 |
| U.S. Treasury 1.50% 2020 | 100,000 | 99,785 |
| U.S. Treasury 1.125% 202110 | 50,000 | 48,849 |
| U.S. Treasury 6.25% 202310 | 10,000 | 12,332 |
| Total U.S. Treasury bonds & notes | 185,895 | |
| Bonds & notes of governments & government agencies outside the U.S. 0.14% | ||
| Argentine Republic (Argentina Central Bank 7D Repo Reference Rate) 26.25% 20204 | ARS285,125 | 17,430 |
| Argentine Republic 18.20% 2021 | 104,500 | 6,295 |
| 23,725 | ||
| Municipals 0.09% Illinois 0.09% | ||
| Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2009-E, 6.138% 2039 | $16,290 | 15,147 |
| 15,147 | ||
| Total bonds, notes & other debt instruments (cost: $15,956,106,000) | 16,157,783 | |
| Convertible bonds 0.31% Consumer discretionary 0.14% | ||
| DISH DBS Corp. 3.375% 2026 | — | 23,627 |
| Energy 0.03% | ||
| Golar LNG Ltd., convertible notes 2.75% 20225 | — | 4,487 |
| Miscellaneous 0.14% | ||
| Other convertible bonds in initial period of acquisition | 25,124 | |
| Total convertible bonds (cost: $52,283,000) | 53,238 |
American High-Income Trust — Page 15 of 19
| Convertible stocks 0.79% Industrials 0.25% | Shares | Value (000) |
| CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.359%6,7,9 | 47,121 | $32,278 |
| CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.359%6,7,9 | 21,062 | 10,531 |
| 42,809 | ||
| Energy 0.04% | ||
| Chesapeake Energy Corporation 5.75% convertible preferred | 9,000 | 5,670 |
| Southwestern Energy Co., Series B, 6.25% convertible preferred 2018 | 85,000 | 1,212 |
| 6,882 | ||
| Information technology 0.03% | ||
| Alibaba Mandatory Exchangeable Trust, convertible preferred5 | 28,000 | 5,495 |
| Telecommunication services 0.01% | ||
| Frontier Communications Corp., Series A, convertible preferred | 70,000 | 1,347 |
| Miscellaneous 0.46% | ||
| Other convertible stocks in initial period of acquisition | 80,933 | |
| Total convertible stocks (cost: $167,724,000) | 137,466 | |
| Common stocks 1.05% Information technology 0.24% | ||
| Corporate Risk Holdings I, Inc.6,7,9,11 | 2,380,355 | 41,632 |
| Corporate Risk Holdings Corp.6,7,9,11 | 12,035 | — |
| 41,632 | ||
| Energy 0.20% | ||
| White Star NR Corp.6,7,9,11 | 24,665,117 | 17,759 |
| Ascent Resources NR Corp.6,7,9,11 | 90,532,504 | 17,201 |
| Southwestern Energy Co.11 | 47,152 | 288 |
| Denbury Resources Inc.11 | 60,000 | 81 |
| Petroplus Holdings AG9,11 | 3,360,000 | — |
| 35,329 | ||
| Industrials 0.17% | ||
| CEVA Group PLC6,7,9,11 | 59,168 | 29,584 |
| Atrium Corp.5,9,11 | 10,987 | 11 |
| 29,595 | ||
| Real estate 0.12% | ||
| OUTFRONT Media Inc. REIT | 660,645 | 16,635 |
| American Tower Corp. REIT | 29,000 | 3,964 |
| 20,599 | ||
| Materials 0.11% | ||
| Warrior Met Coal, Inc.5,9 | 843,601 | 19,486 |
| Telecommunication services 0.03% | ||
| NII Holdings, Inc.6,11 | 9,028,522 | 4,153 |
American High-Income Trust — Page 16 of 19
| Common stocks Health care 0.02% | Shares | Value (000) |
| Rotech Healthcare Inc.6,7,9,11 | 1,916,276 | $3,833 |
| Consumer discretionary 0.00% | ||
| Adelphia Recovery Trust, Series Arahova9,11 | 1,773,964 | 9 |
| Adelphia Recovery Trust, Series ACC-19,11 | 10,643,283 | 7 |
| 16 | ||
| Miscellaneous 0.16% | ||
| Other common stocks in initial period of acquisition | 26,667 | |
| Total common stocks (cost: $364,440,000) | 181,310 | |
| Rights & warrants 0.00% Utilities 0.00% | ||
| Vistra Energy Corp., rights5,11,12 | 837,842 | 817 |
| Consumer discretionary 0.00% | ||
| Liberman Broadcasting, Inc., warrants, expire 20227,9,11 | 10 | — |
| Miscellaneous 0.00% | ||
| Other rights & warrants in initial period of acquisition | — | |
| Total rights & warrants (cost: $1,341,000) | 817 | |
| Short-term securities 3.87% | Principal?amount (000) | |
| Apple Inc. 1.18%–1.20% due 10/20/2017–12/12/20175 | $96,000 | 95,887 |
| Coca-Cola Co. 1.24%–1.27% due 1/17/2018–1/24/20185 | 132,500 | 131,979 |
| Eli Lilly and Co. 1.11% due 10/17/20175 | 25,000 | 24,986 |
| Federal Home Loan Bank 1.01% due 11/24/2017 | 19,000 | 18,972 |
| Hershey Co. 1.13% due 10/16/20175 | 50,000 | 49,973 |
| Johnson & Johnson 1.10% due 10/5/2017–10/17/20175 | 115,300 | 115,250 |
| Microsoft Corp. 1.13%–1.17% due 10/4/2017–12/5/20175 | 39,900 | 39,845 |
| Private Export Funding Corp. 1.22% due 10/18/20175 | 14,100 | 14,091 |
| Qualcomm Inc. 1.16% due 10/25/20175 | 56,100 | 56,053 |
| U.S. Treasury Bills 1.02% due 11/16/2017 | 100,000 | 99,881 |
| United Parcel Service Inc. 1.12% due 11/6/20175 | 25,000 | 24,970 |
| Total short-term securities (cost: $671,901,000) | 671,887 | |
| Total investment securities 99.16% (cost: $17,213,795,000) | 17,202,501 | |
| Other assets less liabilities 0.84% | 146,497 | |
| Net assets 100.00% | $17,348,998 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
American High-Income Trust — Page 17 of 19
Swap contracts
Interest rate swaps
| Receive | Pay | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 9/30/2017 (000) |
| 3-month USD-LIBOR | 2.0745% | 11/21/2026 | $135,000 | $2,001 | $— | $2,001 |
| 3-month USD-LIBOR | 2.2825% | 4/13/2027 | 87,100 | (113) | — | (113) |
| 2.288% | 3-month USD-LIBOR | 10/2/2027 | 87,200 | (11) | — | (11) |
| 3-month USD-LIBOR | 2.375% | 11/18/2046 | 15,000 | 512 | — | 512 |
| 3-month USD-LIBOR | 2.587% | 12/16/2046 | 10,000 | (118) | — | (118) |
| $— | $2,271 |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
| Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront payments (000) | Unrealized depreciation at 9/30/2017 (000) |
| CDX.NA.HY.28 | 5.00%/Quarterly | 6/20/2022 | $613,800 | $(47,463) | $(43,620) | $(3,843) |
| CDX.NA.HY.29 | 5.00%/Quarterly | 12/20/2022 | 178,000 | (13,972) | (13,394) | (578) |
| $(57,014) | $(4,421) |
Centrally cleared credit default swaps on credit indices — sell protection
| Receive/ Payment frequency | Pay | Expiration date | Notional (000) | Value at 9/30/2017 (000) | Upfront receipts (000) | Unrealized (depreciation) appreciation at 9/30/2017 (000) |
| 5.00%/Quarterly | CDX.NA.HY.21 | 12/20/2018 | $17,100 | $534 | $1,026 | $(492) |
| 5.00%/Quarterly | CDX.NA.HY.22 | 6/20/2019 | 27,550 | 1,259 | 2,145 | (886) |
| 5.00%/Quarterly | CDX.NA.HY.25 | 12/20/2020 | 31,360 | 2,038 | 1,651 | 387 |
| 5.00%/Quarterly | CDX.NA.HY.27 | 12/20/2021 | 99,000 | 7,810 | 7,915 | (105) |
| $12,737 | $(1,096) |
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 | Scheduled interest and/or principal payment was not received. |
| 2 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,141,109,000, which represented 6.58% of the net assets of the fund. |
| 3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
| 4 | Coupon rate may change periodically. |
| 5 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $8,791,084,000, which represented 50.67% of the net assets of the fund. |
| 6 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
| 7 | Acquired through a private placement 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. |
| 8 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
| 9 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $344,369,000, which represented 1.98% of the net assets of the fund. |
| 10 | A portion of this security was pledged as collateral. The total value of pledged collateral was $36,961,000, which represented .21% of the net assets of the fund. |
| 11 | Security did not produce income during the last 12 months. |
| 12 | Purchased on a TBA basis. |
| Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets |
| Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $161,000 | $163,415 | .94% |
| Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 18,400 | 18,078 | .10 |
| CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.304% | 5/2/2013 | 47,777 | 32,278 | .19 |
American High-Income Trust — Page 18 of 19
| Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets |
| CEVA Group PLC | 5/2/2013 | $57,165 | $29,584 | .17% |
| CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.304% | 5/2/2013 | 20,349 | 10,531 | .06 |
| Corporate Risk Holdings I, Inc. | 8/31/2015 | 26,446 | 41,632 | .24 |
| Corporate Risk Holdings Corp. | 8/31/2015 | - | - | .00 |
| White Star NR Corp. | 6/30/2016 | 16,491 | 17,759 | .10 |
| Ascent Resources NR Corp. | 11/15/2016 | 4,340 | 17,201 | .10 |
| Rotech Healthcare Inc. | 9/26/2013 | 41,128 | 3,833 | .02 |
| Liberman Broadcasting, Inc., warrants, expire 2022 | 12/31/2012-11/26/2014 | - | - | .00 |
| Total private placement securities | $393,096 | $334,311 | 1.92% |
| Key to abbreviations and symbol |
| ARS = Argentine pesos |
| G.O. = General Obligation |
| LIBOR = London Interbank Offered Rate |
| LOC = Letter of Credit |
| Rev. = Revenue |
| TBA = To-be-announced |
| USD/$ = U.S. dollars |
Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
| MFGEFPX-021-1117O-S60688 | American High-Income Trust — Page 19 of 19 |
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 of American High-Income Trust (the “Fund”), including the summary investment portfolio, as of September 30, 2017, and the related statements 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 (collectively, the “financial statements”), the financial highlights for each of the periods presented (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the investment portfolio as of September 30, 2017 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights, and investment portfolio are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements, financial highlights, and investment portfolio 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, financial highlights, and investment portfolio are free of material misstatement. Our audit included consideration of internal control over financial reporting as it relates to the schedule 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 as it relates to the schedule. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and investment portfolio, 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, 2017, 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, financial highlights, and investment portfolio in securities referred to above present fairly, in all material respects, the financial position of American High-Income Trust as of September 30, 2017, and 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, 2017
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: November 30, 2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By /s/ David C. Barclay |
David C. Barclay, President and Principal Executive Officer |
| Date: November 30, 2017 |
| By /s/ Brian C. Janssen |
Brian C. Janssen, Treasurer and Principal Financial Officer |
| Date: November 30, 2017 |