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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-05364

American High-Income Trust

(Exact name of registrant as specified in charter)

333 South Hope Street

Los Angeles, California 90071

(Address of principal executive offices)

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

Date of fiscal year end: September 30

Date of reporting period: September 30, 2006

Kimberly S. Verdick

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and address of agent for service)

Copies to:

Michael Glazer

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, California 90071

(Counsel for the registrant)

ITEM 1 - Reports to Stockholders

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The right choice for the long term^®

American High-Income Trust

Simplifying a complex investment:

How bond funds can add value and limit risk

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Annual report for the year ended September 30, 2006

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

This fund is one of the 30 American Funds. The organization ranks among the nation’s three largest mutual fund families. For 75 years, Capital Research and Management Company,^SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Contents
Letter to shareholders	1
Results at a glance	1
The value of a long-term perspective	3
Simplifying a complex investment: How bond funds
can add value and limit risk	4
Summary investment portfolio	9
Financial statements	14
Board of trustees and officers	31
What makes American Funds different?	back cover

Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For current information and month-end results, visit americanfunds.com. Fund results shown, unless otherwise indicated, are at net asset value. If a sales charge (maximum 3.75%) had been deducted, the results would have been lower.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2006:

Class A shares	1 year			5 years			10 years
Reflecting 3.75% maximum sales charge		+4.18	%		+9.39	%		+6.78	%

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 23 and 24 for details.

The fund’s 30-day yield for Class A shares as of October 31, 2006, calculated in accordance with the Securities and Exchange Commission formula, was 6.97%, which reflects a fee waiver (6.94% without the fee waiver). The fund’s distribution rate for Class A shares as of that date was 7.00%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Results for other share classes can be found on page 30. Please see the inside back cover for important information about other share classes.

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

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Fellow shareholders:

Strong corporate fundamentals, a healthy economy and historically low default rates provided a favorable climate for high-yield bonds, helping American High-Income Trust post a solid gain for the fiscal year.

For the 12 months ended September 30, 2006, shareholders who reinvested monthly dividends totaling 94.1 cents a share earned a total return of 8.3%, including an income return of 7.9%. Those results surpassed both the 6.7% gain for the Lipper High Current Yield Bond Funds Index, a benchmark of similar funds, and the 7.8% return for the Credit Suisse High Yield Index, which attempts to mirror the high-yield debt markets. The latter index is unmanaged and includes no expenses.

High-yield bonds enjoyed significantly higher returns during the period than investment-grade bonds. The Citigroup Broad Investment-Grade (BIG) Bond Index, an unmanaged index that measures high-quality bond markets including Treasuries, posted a 3.7% total return, not including expenses.

Shareholders in the fund who elected to take their dividends in cash saw the value of their holdings increase 0.2% while earning an income return of 7.7%.

Corporate profitability drives results

The high-yield bond market benefited from a combination of factors during the period, including rising corporate profits, solid economic growth, low default rates and brisk demand by investors for higher yielding issues.

The robust economy, however, sparked concerns of inflation, which led the Federal Reserve to continue to tighten credit. Over the past 12 months, the Fed raised its target for the federal funds rate six times, from 3.75% to 5.25%. Higher quality bonds were hit harder by the increased interest rates. Fortunately for holders of high-yield issues, strong corporate profits helped to boost prices, which offset the effect of rising interest rates.

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Results at a glance

Average annual total returns for periods ended

September 30, 2006, with all distributions reinvested.

The market indexes are unmanaged.

Returns	1 year			5 years			10 years
American High-Income Trust		+8.3	%		+10.2	%		+7.2	%
Credit Suisse High
Yield Index		+7.8			+11.3			+7.1
Citigroup Broad Investment-
Grade (BIG) Bond Index		+3.7			+4.8			+6.4
Lipper High Current Yield
Bond Funds Index		+6.7			+9.3			+5.0

For the 10 years ended September 30, 2006, American High-Income Trust ranked 10th in total return among the 120 high current yield funds in existence throughout the period, according to Lipper. For the five years ended September 30, 2006, it ranked 82nd of 321, and for the 12 months ended September 30, 2006, the fund ranked 53rd of 458. Lipper rankings do not reflect the effect of sales charges.

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Strong corporate profits, however, also encouraged companies to take on more debt to finance acquisitions, make larger dividend payments and increase business spending. Going forward, that means we must select companies that can effectively manage their businesses with a high level of debt throughout various business cycles.

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The high-yield bond market benefited from a combination of factors during the period, including rising corporate profits, solid economic growth, low default rates and brisk demand by investors for higher yielding issues.

[End Sidebar]

Sectors that impacted the fund

Fund results for the period were helped by good returns in the struggling but improving automobile and airline industries. Both industries still face serious operational and financial difficulties, but investors have responded positively to the initial progress made by management to improve their operations. General Motors and Ford are not likely to return to investment-grade anytime soon, but they have enacted cost savings and other measures that have improved their security prices. In the airline industry, our holdings in aircraft-backed securities of major airlines also contributed positively to results, due to greater demand for travel and an increase in fares.

Hurting portfolio results were the bonds of homebuilders, which suffered significant declines in profitability and underlying demand due to the slowdown in the U.S. housing market. Although we expect the cycle to get worse, we believe that homebuilders are better positioned to withstand a downturn than they were in previous market cycles. As a result, we believe there are some attractive investment opportunities and have been increasing our holdings in this area.

Maintaining a long-term perspective

Although the market environment continues to be favorable for high-yield bonds, we are cautiously optimistic as we enter the next period. Slower economic growth, inflationary concerns, higher debt levels and tighter global monetary conditions are some of the potential challenges that lie ahead. It’s also become harder to find good values, as many high-yield issuers have already improved their credit quality and experienced a boost in their bond prices.

For all these reasons, fundamental research will be crucial in selecting companies that will be able to support their debt obligations through various business and market cycles going forward. Our continued emphasis on building a diversified, research-driven investment portfolio has allowed the fund to produce solid results for shareholders who share our long-term outlook. Over the past 10-year period ended September 30, 2006, American High-Income Trust has produced an average annual total return of 7.2%, compared with a 5.0% return for the Lipper High Current Yield Bond Funds Index and a 7.1% return for the Credit Suisse High Yield Index.

To learn how an actively managed bond fund can add value to your investment portfolio, please read the feature article beginning on page 4.

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

Sincerely,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.Vice Chairman

/s/ David C. Barclay

David C. Barclay
President

November 10, 2006

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

The value of a long-term perspective

Here’s how a $10,000 investment in American High-Income Trust grew between February 19, 1988, when the fund began operations, and September 30, 2006, the end of its latest fiscal year. As you can see, that $10,000 grew to $49,174 with all distributions reinvested.

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

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

[end mountain chart]

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

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

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

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

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

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

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

Average annual total returns based on a $1,000 investment (for periods ended September 30, 2006)*

	1 year			5 years			10 years
Class A shares		+4.18	%		+9.39	%		+6.78	%

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

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 23 and 24 for details.

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Simplifying a complex investment:

How bond funds can add value and limit risk

It’s a debate that has raged for decades: Is it better to invest in individual bonds or bond funds? When it comes to an investment in the high-yield market, the answer for most investors is a bond fund.

“The complex nature of the high-yield securities market makes it difficult for individual investors to go it alone,” says David Barclay, president of American High-Income Trust. “The market is geared to the institutional investor. It lacks transparency, requires a lot of money to build a diversified portfolio and is difficult to navigate.”

For individual investors seeking a high level of current income as well as capital appreciation, a high-yield bond fund can provide a simple way to invest in a diversified, carefully supervised portfolio of lower rated, higher risk corporate bonds. In the following pages, we will discuss five key advantages a bond fund has over individual bonds.

Professional management

Perhaps the biggest advantage of owning a bond fund is professional portfolio management. Investing in high-yield bonds can be even more complicated than investing in stocks. Buyers must understand the relationships among bond prices, interest rates and varying maturity dates. They must also be able to evaluate such factors as covenants and call features (which may allow the issuer to redeem the bonds before the maturity date), and how that can affect their potential return. On top of that, they must understand special financing and credit features of different bonds from different issuers. “The average investor simply does not have the time, resources or expertise required to adequately do this kind of exhaustive research,” says David.

Professional management can give investors a tremendous advantage. In American High-Income Trust, managers and analysts are researching the market full time, constantly monitoring the financial fitness of each bond issuer in the portfolio while evaluating shifts in risk and changing opportunities in the marketplace. Fund managers also have access to a greater volume of in-depth information about companies, industries, the market environment, individual issues and bond structure than an individual investor does, as well as the ability to review credits from several perspectives.

“Our comprehensive research process allows us to look at the broader market and assess value across a range of opportunities,” says Susan Tolson, a portfolio counselor in the fund. “We have teams of people looking at durations, currencies, what the Federal Reserve is doing, and trends in the broader economic environment both in the U.S. and globally.”

The fund also has access to equity research at Capital, which gives the portfolio counselors another perspective on the bond markets. “The equity analysts are a great resource for us,” says Susan, citing the 2000 to 2002 market downturn as an example. “During that time, there was a merging of external shocks — including the Internet bubble, a credit crunch and corporate governance issues — that repriced the bonds of high-yield and investment-grade companies. Investment-grade bonds were trading at yields usually associated with high-yield bonds. Thanks to the collaboration between our equity and fixed-income research analysts, we were able to spot relative value in the market and react to it quickly.”

This kind of cross-research and collaboration allows the fund managers to find the right balance of risk and return in the portfolio — a key factor to achieving success in the high-yield bond market.

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professional management

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“Our comprehensive research process allows us to look at the broader market and assess value across a range of opportunities,” says Susan Tolson.

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Diversification

“In any bond portfolio where there is risk of loss, diversification is important,” says David, who believes many investors underestimate the potential downside of investing in bonds. “If you invest in high yield, you will have bonds that will default,” he says. “If an individual owns just a few bonds and one defaults or declines in price significantly, it will have a disproportionate impact on their overall portfolio.”

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better prices

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“Because institutional investors typically trade in lots of $1 million or more, they get maximum efficiency of trading, better prices and lower transaction costs,” says David Barclay.

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Diversification acts as a shock absorber, helping the portfolio withstand adverse changes in market conditions and problems that can develop with individual issuers, such as nonpayments, credit downgrades and call features. It can also expose the investor to bonds that may disproportionately benefit from market changes. A well-diversified portfolio includes a broad sampling of bond maturities, types of issuers and credit quality. Whether hedging the negative or emphasizing the positive, diversification can help stabilize a portfolio over time — a particularly important consideration for investors who plan to live on the income generated by their portfolios.

Yet, diversification can be difficult if not impossible for the average individual investor to achieve. “High-yield bonds typically trade in large lots, usually of $1 million or more, which makes it difficult for individuals to buy enough bonds to build a diversified portfolio,” says Susan. That compares with a minimum initial investment of $250 to own American High-Income Trust, which holds hundreds of debt issues. Shareholders, in effect, own a proportionate share of each of these holdings, which encompass companies in industries ranging from telecommunication services and information technology to health care and consumer staples.

The fund’s investment guidelines also limit how much exposure it may have to any given company, sector or asset class. In most cases, the largest single holdings do not exceed 2% of the portfolio. “These guidelines result in an investment mix that provides diversification and leads to more consistent results,” says David.

Better prices

A high-yield bond fund can obtain better bond prices than individual investors for two main reasons: better execution and more access to information.

Because there is very little publicly available information about transaction prices in the high-yield market, it is difficult for the individual investor to get the best price or even be treated fairly. “The brokerage community is geared to institutional investors,” says David. “Because institutional investors typically trade in lots of $1 million or more, they get maximum efficiency of trading, better prices and lower transaction costs. The individual investor trading in odd lots incurs significantly more in trading costs.”

Unlike stocks, which trade on electronic exchanges at prices that are posted almost instantaneously in an extremely visible and efficient market, high-yield bonds are traded “over the counter” where brokers and dealers negotiate directly with one another over computer networks and by telephone. Price quotes can vary significantly from dealer to dealer, and often depend on the amount of the sale or purchase. As a result, high-yield bonds are more difficult than stocks to trade efficiently. “The large volume we trade daily with our counterparts at Wall Street firms and the investment we have made in trading support systems allow us to garner favorable executions in the market,” says Susan.

A fund also has the resources to evaluate the various factors that determine the value of a bond and its yield. For example, one issuer may be offering several bonds with various maturities, yields and seniority levels within the capital structure. The traders on the fund’s trading desk add to the evaluation of which company’s bonds to buy by helping to determine the best issue or issues of an individual issuer. They are constantly assessing the flows of supply and demand in the market, which makes them more knowledgeable about market prices and better able to evaluate the best time to buy or sell a particular security.

Greater liquidity and marketability

Because of high trading costs and a lack of transparency in the high-yield market, individual investors have less flexibility to adjust their bond holdings to take advantage of changing market conditions.

“Because we can trade efficiently, we may buy and sell to take advantage of relative value,” says David. “That gives the fund the ability to change its risk profile based on microeconomic and macroeconomic conditions.”

American High-Income Trust has significant resources dedicated to trading, which gives portfolio counselors the ability to understand what’s going on in real time and react to it in real time in an efficient way. “Liquidity does vary in this market,” says David. “We have access both as a buyer and seller to the market. As an active participant, we have a good understanding of liquidity within the market and of different issues, and can pick better times to transact.”

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A unique management system

American High-Income Trust is managed in a unique fashion — as are all American Funds — using a method we call the multiple portfolio counselor system. In this system, each of the fund’s portfolio counselors is entrusted with a segment of the portfolio to manage as he or she believes will best meet the objective of the fund. This allows them to focus on the sectors of the market they know best and deem the best value. What makes the system special is that it enables counselors to consult with each other, yet follow their own highest convictions. Because the fund is not dependent on any single individual, transition of fund management from one generation to the next becomes almost seamless.

American High-Income Trust has five counselors, each of whom has more than 12 years of experience. A sixth segment of the fund, as shown in the pie chart, is managed directly by the fund’s research analysts, each contributing to the portfolio in his or her own area of expertise. Those contributions, in turn, signal to counselors the degree of an analyst’s conviction.

This type of portfolio management provides for diverse viewpoints and leads to more consistent results by smoothing out the peaks and valleys of the market. “Not every individual style works in every market environment,” says Susan Tolson, a portfolio counselor in the fund. “This system balances out the different styles and provides for greater stability.”

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[photo of David C. Barclay]
David C. Barclay

25 years of investment experience

[photo of Abner D. Goldstine]

Abner D. Goldstine

55 years of investment experience

[photo of Susan M. Tolson]

Susan M. Tolson

18 years of investment experience

[photo of David Daigle]

David Daigle

12 years of investment experience

[photo of Marc Linden]

Marc Linden

12 years of investment experience

Years of experience as of December 2006.

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greater liquidity and marketability

Individuals do not have access to the array of information that an institution has to make the best decisions. As a result, individuals have less ability to adjust their bond holdings to take advantage of changing market conditions.

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In addition, the fund’s counselors frequently are able to purchase bonds that are undervalued or overlooked by the market. Most of these bonds are simply unavailable to individual investors. “Many issuers that don’t trade very often will go to larger institutional investors, who can transact quickly and more efficiently,” says Susan. “Often, an institutional investor will have opportunities to participate in the primary or secondary market that individual investors never see.”

Automatic reinvestment

Finally, a bond fund can simplify the administrative aspects of your investment. Unlike individual bonds, which pay interest twice a year, American High-Income Trust pays income in the form of monthly dividends. The more frequent payouts are a convenience both for those looking to create a regular income stream to meet living expenses as well as for those who want to automatically reinvest their dividends in additional shares of the fund.

Over time, reinvested dividends help boost future income by increasing the number of shares owned. The benefits of automatic reinvestment are illustrated in the mountain chart on page 3, which shows the growth of an initial investment with dividends reinvested over the life of the fund.

Fund shareholders can also make subsequent investments in the fund at any time and for any dollar amount.

Individual bonds, on the other hand, do not offer the option of automatic reinvestment. Oftentimes, interest payments are set aside in a lower yielding money market fund until enough cash accrues to buy another bond.

“Automatically reinvesting your dividends can help you compound your earnings over time without paying a sales charge,” says David. “That’s difficult to do with individual bonds.”

Furthermore, bond funds offer the convenience of not having to hold the actual bond certificates and keeping records of all interest income and capital gains received.

For all these reasons, an actively managed bond fund accomplishes what many individuals seek when investing in high-yield bonds: the ability to add value, minimize risk and simplify what can otherwise be a complex investment.

Summary investment portfolio, September 30, 2006

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

[begin pie chart]

U.S. corporate bonds & notes	71.9
Non-U.S. corporate bonds & notes	11.4
U.S. government bonds & notes	0.3
Non-U.S. government & government agency bonds & notes	4.3
Common stocks & warrants	1.9
Convertible securities	1.4
Preferred securities	1.9
Other	0.5
Short-term securities & other assets less liabilities	6.4

[end pie chart]

	Principal			Market			Percent
		amount			value			of net
Bonds & notes - 88.48%		(000	)		(000	)		assets
Corporate bonds & notes - 83.37%
Consumer discretionary - 23.02%
Charter Communications Operating, LLC, Term Loan B, 8.125% 2013 (1) (2)	$	51,500		$	51,822
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.:
8.00% 2012 (3)		45,950			46,524
8.375% 2014 (3)		24,800			25,327
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013		44,665			45,167
CCH II, LLC and CCH II Capital Corp. 10.25% 2010		14,105			14,458
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 0%-13.50% 2011-2012 (4)		14,375			11,307
CCH I, LLC and CCH I Capital Corp. 11.00% 2015		4,750			4,346			1.76	%
General Motors Corp.:
7.20% 2011		96,220			89,124
7.25% 2013		€ 3,000			3,535
7.125%-9.40% 2013-2033	$	75,815			66,721			1.41
Linens 'n Things, Inc. 11.132% 2014 (1) (3)		66,350			64,360			.57
CanWest Media Inc., Series B, 8.00% 2012		62,808			62,337			.55
Cinemark USA, Inc. 9.00% 2013		58,743			61,240			.54
Young Broadcasting Inc. 10.00% 2011		52,810			49,575			.44
Grupo Posadas, SA de CV 8.75% 2011 (3)		46,225			48,536			.43
Mohegan Tribal Gaming Authority 6.375% 2009		45,540			45,426			.40
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014		45,910			44,762			.39
Bon-Ton Department Stores, Inc. 10.25% 2014		45,200			44,183			.39
Tenneco Automotive Inc. 8.625% 2014		43,250			42,926			.38
Neiman Marcus Group, Inc. 9.00% 2015 (5)		38,355			40,944			.36
Other securities					1,744,517			15.40
					2,607,137			23.02
Telecommunication services - 12.13%
Triton PCS, Inc.:
9.375% 2011		60,855			45,793
8.50% 2013		113,840			106,156
8.75% 2011		46,050			34,653			1.65
Windstream Corp.:
8.625% 2016 (3)		90,575			97,368
8.125% 2013 (3)		25,300			26,976
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015		44,450			47,562			1.52
American Cellular Corp., Series B, 10.00% 2011		52,725			55,493
Dobson Communications Corp. 8.875%-9.757% 2012-2013 (1)		57,100			57,456
Dobson Cellular Systems, Inc. 8.375%-9.875% 2011-2012 (3)		53,215			56,231			1.49
Intelsat (Bermuda), Ltd. 8.25%-11.25% 2012-2016 (1) (3)		111,180			114,626
Intelsat PanAmSat Opco 9.00% 2016 (3)		13,075			13,533
Intelsat, Ltd. 6.50%-7.625% 2012-2013		12,500			10,303			1.22
Qwest Capital Funding, Inc. 7.00%-7.90% 2009-2031		72,820			73,558
Qwest Communications International Inc. 7.25%-7.50% 2011-2014		45,575			45,818
U S WEST Capital Funding, Inc. 6.50%-6.875% 2018-2028		15,064			13,578
Qwest Corp. 8.875% 2012		3,600			3,946			1.21
Nextel Communications, Inc.:
Series D, 7.375% 2015		85,378			88,177
Series E, 6.875% 2013		14,500			14,776
Alamosa (Delaware), Inc. 8.50% 2012		1,925			2,060			.93
American Tower Corp.:
7.125% 2012		64,360			66,291
7.25%-7.50% 2011-2012		27,225			28,132			.83
Centennial Communications Corp. 11.258% 2013 (1)		39,750			41,241			.37
Other securities					329,767			2.91
					1,373,494			12.13
Industrials - 11.05%
Continental Airlines, Inc. 6.545%- 8.388% 2012-2022 (2)		121,748			121,134			1.07
UAL Corp., Term Loan B, 9.08% 2012 (1) (2)		67,045			67,548			.60
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014 (3)		43,750			45,445			.40
Goodman Global Holdings, Inc., Series B, 7.875% 2012		44,980			43,068			.38
Accuride Corp. 8.50% 2015		46,015			43,024			.38
DynCorp International and DIV Capital Corp., Series A, 9.50% 2013		41,290			42,942			.38
Other securities					888,644			7.84
					1,251,805			11.05
Materials - 9.19%
JSG Holdings PLC 11.50% 2015 (5)		€ 41,591			53,912			.48
Georgia-Pacific Corp., Second Lien Term Loan C, 8.39% 2013 (1) (2)	$	49,475			50,032			.44
Georgia Gulf Corp. 9.50% 2014 (3)		40,800			40,647			.36
Other securities					895,872			7.91
					1,040,463			9.19
Energy - 5.92%
Williams Companies, Inc.:
8.75% 2032		39,370			43,307
6.375%-8.125% 2010-2021 (1) (3)		43,050			45,143
Transcontinental Gas Pipe Line Corp. 6.40%-7.25% 2011-2026 (3)		16,810			17,128
Northwest Pipeline Corp. 7.00% 2016 (3)		5,000			5,138
Williams Companies, Inc. and Credit Linked Certificate Trust 6.75% 2009 (3)		2,000			2,020
Williams Partners LP 7.50% 2011 (3)		16,525			16,649			1.14
Drummond Co., Inc. 7.375% 2016 (3)		46,205			43,664			.39
Other securities					496,907			4.39
					669,956			5.92
Financials - 5.07%
General Motors Acceptance Corp.:
7.25% 2011		45,460			45,762
6.125%-7.60% 2007-2014 (1)		123,745			123,119			1.49
Ford Motor Credit Co. 9.75% 2010 (3)		44,000			45,466			.40
Other securities					359,904			3.18
					574,251			5.07
Utilities - 4.86%
Edison Mission Energy:
7.50% 2013 (3)		45,375			46,056
7.73%-7.75% 2009-2016 (3)		54,975			56,466
Mission Energy Holding Co. 13.50% 2008		38,350			43,000
Midwest Generation, LLC, Series B, 8.56% 2016 (2)		25,378			26,980
Midwest Generation, LLC and Midwest Finance Corp. 8.75% 2034		16,500			17,696
Homer City Funding LLC 8.734% 2026 (2)		9,342			10,393			1.77
AES Corp.:
8.75% 2013 (3)		43,985			47,394
8.875%-9.50% 2009-2015 (3)		63,301			68,234
AES Gener SA 7.50% 2014		18,350			19,089
AES Red Oak, LLC 8.54%-9.20% 2019-2029 (2)		9,486			10,350			1.28
Other securities					205,142			1.81
					550,800			4.86
Consumer staples - 4.44%
Other securities					503,281			4.44
Information technology - 3.97%
Sanmina-SCI Corp. 8.125% 2016		77,725			76,559			.68
Hughes Network Systems, LLC and HNS Finance Corp. 9.50% 2014 (3)		58,375			60,418			.53
Electronic Data Systems Corp., Series B, 6.50% 2013 (1)		41,040			41,689			.37
Celestica Inc. 7.875% 2011		41,170			41,582			.37
Other securities					229,417			2.02
					449,665			3.97
Health care - 3.72%
Warner Chilcott Corp. 8.75% 2015		71,014			73,855			.65
Other securities					347,894			3.07
					421,749			3.72
Non-U.S. government & government agency bonds & notes - 4.28%
Other securities					484,387			4.28
Other - 0.83%
Other securities					94,363			.83
Total bonds & notes (cost: $9,912,202,000)					10,021,351			88.48
		Shares or			Market			Percent
		principal			value			of net
Convertible securities - 1.41%		amount			(000	)		assets
Other - 1.41%
American Tower Corp. 5.00% convertible debentures 2010	$	25,925,000			25,925			.23
AES Trust VII 6.00% convertible preferred 2008		439,925			21,446			.19
Other securities					111,827			.99
Total convertible securities (cost: $139,429,000)					159,198			1.41
					Market			Percent
					value			of net
Preferred securities - 1.86%		Shares			(000	)		assets
Financials - 1.83%
Fuji JGB Investment LLC, Series A, 9.87% noncumulative preferred (1) (3)		52,248,000			55,982			.49
Other securities					151,533			1.34
					207,515			1.83
Other - 0.03%
Other securities					3,626			.03
Total preferred securities (cost: $183,407,000)					211,141			1.86
					Market			Percent
					value			of net
Common stocks - 1.85%		Shares			(000	)		assets
Other - 1.85%
Drax Group PLC (6)		3,969,950			61,924			.55
Dobson Communications Corp., Class A (6)		3,435,685			24,118			.21
American Tower Corp., Class A (6)		538,967			19,672			.18
Sprint Nextel Corp., Series 1		777,508			13,334			.12
Other securities					90,224			.79
					209,272			1.85
Miscellaneous - 0.00%
Other common stocks in initial period of acquisition					237			.00
Total common stocks (cost: $154,796,000)					209,509			1.85
					Market			Percent
					value			of net
Warrants - 0.00%					(000	)		assets
Other - 0.00%
Other securities					83			.00
Total warrants (cost: $1,100,000)					83			.00
		Principal			Market			Percent
		amount			value			of net
Short-term securities - 5.07%		(000	)		(000	)		assets
Clipper Receivables Co., LLC 5.26%-5.28% due 10/19-12/1/2006 (3) (7)	$	69,705			69,265			.61
Fannie Mae 5.21% due 10/2/2006		61,200			61,182			.54
Hershey Co. 5.19% due 10/31-11/8/2006 (3) (7)		55,000			54,725			.48
Wal-Mart Stores Inc. 5.20%-5.21% due 11/28-12/19/2006 (3) (7)		53,500			52,969			.47
Federal Home Loan Bank 5.15% due 11/29/2006 (7)		53,000			52,549			.46
Variable Funding Capital Corp. 5.25% due 10/12-10/18/2006 (3)		46,400			46,295			.41
Other securities					237,299			2.10
Total short-term securities (cost: $574,242,000)					574,284			5.07
Total investment securities (cost: $10,965,176,000)					11,175,566			98.67
Other assets less liabilities					150,791			1.33
Net assets				$	11,326,357			100.00	%
"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

 

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.  The market value of the fund's holdings in affiliated companies is included in "Other securities" under their respective industry sectors in the preceding summary investment portfolio. Further details on these holdings and related transactions during the year ended September 30, 2006, appear below.

Company	Beginning			Ending		Dividend income			Market value of affiliates at 9/30/2006
	shares	Purchases	Sales	shares		(000	)		(000	)
ZiLOG, Inc. (6)	1,140,500	-	-	1,140,500	$	-		$	4,163
ZiLOG, Inc. - MOD III Inc., units (6) (8)	1,868	-	-	1,868		-			278
Clarent Hospital Corp. (6) (8)	576,849	-	-	576,849		-			144
					$	-		$	4,585

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) Coupon rate may change periodically.

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

(3) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $2,269,467,000, which represented 20.04% of the net assets of the fund.

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

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

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

(7) This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.

(8) Valued under fair value procedures adopted by authority of the board of trustees.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities
at September 30, 2006		(dollars and shares in thousands, except per-share amounts)
Assets:
Investment securities at market:
Unaffiliated issuers (cost: $10,943,263)	$	11,170,981
Affiliated issuers (cost: $21,913)		4,585	$	11,175,566
Cash				48,907
Receivables for:
Sales of investments		33,518
Sales of fund's shares		37,895
Open forward currency contracts		333
Dividends and interest		206,674		278,420
				11,502,893
Liabilities:
Payables for:
Purchases of investments		144,768
Repurchases of fund's shares		19,597
Dividends on fund's shares		4,667
Open forward currency contracts		2
Closed forward currency contracts		40
Investment advisory services		2,742
Services provided by affiliates		4,083
Deferred trustees' compensation		141
Other fees and expenses		496		176,536
Net assets at September 30, 2006			$	11,326,357
Net assets consist of:
Capital paid in on shares of beneficial interest			$	11,243,458
Undistributed net investment income				28,765
Accumulated net realized loss				(156,580	)
Net unrealized appreciation				210,714
Net assets at September 30, 2006			$	11,326,357

Shares of beneficial interest issued and outstanding - unlimited shares authorized (920,659 total shares outstanding)
		Net assets	Shares outstanding		Net asset value per share*
Class A	$	8,285,158	673,456	$	12.30
Class B		759,588	61,743		12.30
Class C		870,949	70,795		12.30
Class F		846,439	68,802		12.30
Class 529-A		92,214	7,496		12.30
Class 529-B		17,649	1,435		12.30
Class 529-C		40,186	3,267		12.30
Class 529-E		5,294	430		12.30
Class 529-F		4,038	328		12.30
Class R-1		8,334	677		12.30
Class R-2		105,991	8,615		12.30
Class R-3		133,792	10,875		12.30
Class R-4		72,863	5,923		12.30
Class R-5		83,862	6,817		12.30
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $12.78 each.
See Notes to Financial Statements

Statement of operations
for the year ended September 30, 2006		(dollars in thousands)
Investment income:
Income:
Interest (net of non-U.S. taxes of $828)	$	845,000
Dividends		10,756		$	855,756
Fees and expenses(*):
Investment advisory services		35,055
Distribution services		37,973
Transfer agent services		7,740
Administrative services		3,370
Reports to shareholders		460
Registration statement and prospectus		364
Postage, stationery and supplies		785
Trustees' compensation		72
Auditing and legal		100
Custodian		278
State and local taxes		110
Other		83
Total fees and expenses before reimbursements/waivers		86,390
Less reimbursements/waivers of fees and expenses:
Investment advisory services		3,506
Administrative services		348
Total fees and expenses after reimbursements/waivers					82,536
Net investment income					773,220
Net realized gain and unrealized depreciation on investments and non-U.S. currency:
Net realized gain (loss) on:
Investments		95,056
Non-U.S. currency transactions		(127	)		94,929
Net unrealized depreciation on:
Investments		(42,064	)
Non-U.S. currency translations		(1,388	)		(43,452	)
Net realized gain and unrealized depreciation
on investments and non-U.S. currency					51,477
Net increase in net assets resulting from operations				$	824,697
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets		(dollars in thousands)
	Year ended September 30
		2006			2005
Operations:
Net investment income	$	773,220		$	690,756
Net realized gain on investments and non-U.S. currency transactions		94,929			237,223
Net unrealized depreciation on investments and non-U.S. currency translations		(43,452	)		(232,508	)
Net increase in net assets resulting from operations		824,697			695,471
Dividends paid or accrued to shareholders from
net investment income and non-U.S. currency gain		(791,733	)		(694,615	)
Capital share transactions		1,230,972			664,719
Total increase in net assets		1,263,936			665,575
Net assets:
Beginning of year		10,062,421			9,396,846
End of year (including
undistributed net investment income: $28,765 and $49,132, respectively)	$	11,326,357		$	10,062,421
See Notes to Financial Statements

Notes to financial statements

1.    Organization and significant accounting policies

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

The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica® savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Class 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 B and 529-B	None	Declines from 5% to 0% for redemptions within six years of purchase	Class B and 529-B convert to Class A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Class F and 529-F	None	None	None
Class R-1, R-2, R-3, R-4 and R-5	None	None	None

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

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

Security valuation - Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Forward currency contracts are valued at the mean of representative quoted bid and asked prices. Securities and other assets for which representative market quotations are not readily available or are considered unreliable are fair valued as determined in good faith under procedures adopted by authority of the fund's board of trustees. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

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

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

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

Forward currency contracts - The fund may enter into forward currency contracts, which represent agreements to exchange non-U.S. currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in non-U.S. exchange rates arising from investments denominated in non-U.S. currencies. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in non-U.S. exchange rates. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency.

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

2.    Non-U.S. investments

Investment risk - The risks of investing in securities of non-U.S. issuers may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.

Taxation - Dividend and interest income is recorded net of non-U.S. taxes paid. Realized and unrealized gains on securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on realized and unrealized gains to provide for potential non-U.S. taxes payable on these securities. For the year ended September 30, 2006, non-U.S. taxes paid on realized and unrealized gains were $221,000. As of September 30, 2006, there were no non-U.S. taxes provided on unrealized gains.

3. Federal income taxation and distributions

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.

Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; net capital losses; non-U.S. taxes on capital gains; 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, 2006, the fund reclassified $1,841,000 from undistributed net investment income to accumulated net realized loss and $13,000 from undistributed net investment income to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

As of September 30, 2006, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows:

(dollars in thousands)
Undistributed ordinary income	$	42,174
Post-October non-U.S. currency loss deferrals (realized during the period November 1, 2005, through September 31, 2006)*		(318	)
Capital loss carryforward expiring in 2011†		(146,129	)
Gross unrealized appreciation on investment securities		436,308
Gross unrealized depreciation on investment securities		(242,294	)
Net unrealized appreciation on investment securities		194,014
Cost of investment securities		10,981,552
*These deferrals are considered incurred in the subsequent year.
†Reflects the utilization of capital loss carryforwards of $99,258,000. The capital loss carryforwards 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 capital loss carryforwards remain.

Ordinary income distributions paid or accrued to shareholders from net investment income and non-U.S. currency gains were as follows (dollars in thousands):

	Year ended September 30
Share class		2006		2005
Class A	$	593,936	$	523,835
Class B		52,530		51,233
Class C		56,047		52,182
Class F		54,509		42,973
Class 529-A		5,972		4,127
Class 529-B		1,102		879
Class 529-C		2,402		1,818
Class 529-E		338		240
Class 529-F		260		176
Class R-1		474		301
Class R-2		6,088		3,992
Class R-3		7,856		5,166
Class R-4		4,334		2,449
Class R-5		5,885		5,244
Total	$	791,733	$	694,615

4. Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.14% on such assets in excess of $10 billion. The agreement also provides for monthly fees, accrued daily, based on a declining series of rates beginning with 3.00% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.50% on such income in excess of $50,000,000. CRMC is currently waiving 10% of investment advisory services fees. During the year ended September 30, 2006, total investment advisory services fees waived by CRMC were $3,506,000. As a result, the fee shown on the accompanying financial statements of $35,055,000, which was equivalent to an annualized rate of 0.335%, was reduced to $31,549,000, or 0.301% of average daily net assets.

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

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

For Class A and 529-A, the board of trustees has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of September 30, 2006, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A

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

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

Administrative services - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the year ended September 30, 2006, the total administrative services fees paid by CRMC were $4,000 and $344,000 for Class R-1 and R-2, respectively. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described on the previous page for the year ended September 30, 2006, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$18,394	$6,990	Not applicable	Not applicable	Not applicable
Class B	7,560	750	Not applicable	Not applicable	Not applicable
Class C	8,131	Included in administrative services	$945	$200	Not applicable
Class F	1,785		610	191	Not applicable
Class 529-A	147		58	14	$78
Class 529-B	162		12	9	16
Class 529-C	353		26	16	36
Class 529-E	23		4	1	5
Class 529-F	-		3	1	3
Class R-1	69		9	7	Not applicable
Class R-2	667		131	582	Not applicable
Class R-3	540		147	100	Not applicable
Class R-4	142		77	10	Not applicable
Class R-5	Not applicable		74	5	Not applicable
Total	$37,973	$7,740	$2,096	$1,136	$138

Deferred trustees’ compensation - Since the adoption of the deferred compensation plan in 1993, 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 $72,000, shown on the accompanying financial statements, includes $54,000 in current fees (either paid in cash or deferred) and a net increase of $18,000 in the value of the deferred amounts.

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

5. Capital share transactions

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

Share class	Sales(*)			Reinvestments of dividends			Repurchases(*)					Net increase (decrease)
		Amount	Shares		Amount	Shares		Amount		Shares			Amount		Shares
Year ended September 30, 2006
Class A	$	1,836,967	150,540	$	464,940	38,136	$	(1,488,356	)	(122,025	)	$	813,551		66,651
Class B		83,910	6,876		35,821	2,939		(132,928	)	(10,896	)		(13,197	)	(1,081	)
Class C		215,416	17,646		39,011	3,200		(189,470	)	(15,533	)		64,957		5,313
Class F		422,946	34,663		39,769	3,262		(255,884	)	(20,984	)		206,831		16,941
Class 529-A		27,498	2,253		5,944	488		(8,085	)	(663	)		25,357		2,078
Class 529-B		2,686	220		1,099	90		(1,455	)	(119	)		2,330		191
Class 529-C		11,808	968		2,389	196		(6,128	)	(502	)		8,069		662
Class 529-E		1,527	125		337	28		(682	)	(56	)		1,182		97
Class 529-F		1,418	116		258	21		(450	)	(37	)		1,226		100
Class R-1		4,022	330		468	38		(2,189	)	(180	)		2,301		188
Class R-2		48,334	3,959		6,045	496		(23,306	)	(1,910	)		31,073		2,545
Class R-3		69,151	5,670		7,805	640		(40,631	)	(3,334	)		36,325		2,976
Class R-4		45,516	3,729		4,297	352		(19,679	)	(1,615	)		30,134		2,466
Class R-5		35,308	2,894		4,732	388		(19,207	)	(1,576	)		20,833		1,706
Total net increase
(decrease)	$	2,806,507	229,989	$	612,915	50,274	$	(2,188,450	)	(179,430	)	$	1,230,972		100,833
Year ended September 30, 2005
Class A	$	1,717,183	138,578	$	406,479	32,844	$	(1,596,907	)	(129,264	)	$	526,755		42,158
Class B		98,256	7,936		34,967	2,824		(157,417	)	(12,748	)		(24,194	)	(1,988	)
Class C		192,388	15,519		36,227	2,926		(236,808	)	(19,190	)		(8,193	)	(745	)
Class F		313,820	25,362		31,571	2,550		(286,463	)	(23,196	)		58,928		4,716
Class 529-A		21,884	1,765		4,106	332		(6,883	)	(557	)		19,107		1,540
Class 529-B		2,891	233		876	71		(802	)	(64	)		2,965		240
Class 529-C		9,408	759		1,809	146		(4,153	)	(336	)		7,064		569
Class 529-E		1,309	106		239	19		(317	)	(26	)		1,231		99
Class 529-F		944	76		174	14		(378	)	(30	)		740		60
Class R-1		3,243	261		298	24		(868	)	(70	)		2,673		215
Class R-2		45,263	3,652		3,965	321		(18,208	)	(1,476	)		31,020		2,497
Class R-3		81,319	6,577		5,107	413		(47,837	)	(3,844	)		38,589		3,146
Class R-4		35,411	2,847		2,410	195		(18,452	)	(1,500	)		19,369		1,542
Class R-5		20,105	1,623		3,958	320		(35,398	)	(2,867	)		(11,335	)	(924	)
Total net increase
(decrease)	$	2,543,424	205,294	$	532,186	42,999	$	(2,410,891	)	(195,168	)	$	664,719		53,125
(*) Includes exchanges between share classes of the fund.

6. Forward currency contracts

As of September 30, 2006, the fund had outstanding forward currency contracts to sell non-U.S. currencies as follows (amounts in thousands):

	Contract amount				U.S. valuations at September 30, 2006
Non-U.S. currency contracts		Non-U.S.		U.S.		Amount		Unrealized appreciation
Sales:
Euros expiring 10/12 to 12/29/2006		€58,071	$	74,271	$	73,940	$	331

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities, of $4,949,881,000 and $4,030,332,000, respectively, during the year ended September 30, 2006.

Financial highlights(1)
			Income (loss) from investment operations(2)
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized	)		Total from investment operations			Dividends (from net investment income	)		Net asset value, end of period	Total return(3	)		Net assets, end of period (in millions	)			Ratio of expenses to average net assets before reimbursements/ waivers				Ratio of expenses to average net assets after reimbursements/ waivers		(4	)	Ratio of net income to average net assets
Class A:
Year ended 9/30/2006	$	12.27	$	.92	$	.05		$	.97		$	(.94	)	$	12.30	8.26	%	$	8,285				.69	%			.65	%			7.52	%
Year ended 9/30/2005		12.26		.89		.01			.90			(.89	)		12.27	7.54			7,448				.68				.65				7.17
Year ended 9/30/2004		11.88		.87		.35			1.22			(.84	)		12.26	10.57			6,920				.67				.67				7.19
Year ended 9/30/2003		9.62		.93		2.25			3.18			(.92	)		11.88	34.30			6,235				.75				.75				8.49
Year ended 9/30/2002		11.27		1.08		(1.65	)		(.57	)		(1.08	)		9.62	(5.88	)		3,327				.88				.88				9.99
Class B:
Year ended 9/30/2006		12.27		.83		.05			.88			(.85	)		12.30	7.44			760				1.46				1.42				6.76
Year ended 9/30/2005		12.26		.80		.01			.81			(.80	)		12.27	6.72			771				1.45				1.43				6.39
Year ended 9/30/2004		11.88		.78		.35			1.13			(.75	)		12.26	9.71			794				1.46				1.46				6.40
Year ended 9/30/2003		9.62		.84		2.25			3.09			(.83	)		11.88	33.28			736				1.51				1.51				7.63
Year ended 9/30/2002		11.27		1.00		(1.65	)		(.65	)		(1.00	)		9.62	(6.57	)		294				1.59				1.59				9.28
Class C:
Year ended 9/30/2006		12.27		.82		.05			.87			(.84	)		12.30	7.39			871				1.50				1.46				6.71
Year ended 9/30/2005		12.26		.79		.01			.80			(.79	)		12.27	6.65			804				1.51				1.49				6.32
Year ended 9/30/2004		11.88		.77		.35			1.12			(.74	)		12.26	9.62			812				1.54				1.54				6.31
Year ended 9/30/2003		9.62		.83		2.25			3.08			(.82	)		11.88	33.17			772				1.60				1.60				7.49
Year ended 9/30/2002		11.27		.99		(1.65	)		(.66	)		(.99	)		9.62	(6.65	)		262				1.67				1.67				9.21
Class F:
Year ended 9/30/2006		12.27		.92		.05			.97			(.94	)		12.30	8.23			846				.71				.68				7.47
Year ended 9/30/2005		12.26		.88		.01			.89			(.88	)		12.27	7.45			637				.76				.74				7.07
Year ended 9/30/2004		11.88		.86		.35			1.21			(.83	)		12.26	10.44			578				.79				.78				7.05
Year ended 9/30/2003		9.62		.92		2.25			3.17			(.91	)		11.88	34.17			470				.84				.84				8.26
Year ended 9/30/2002		11.27		1.07		(1.65	)		(.58	)		(1.07	)		9.62	(5.95	)		156				.93				.93				9.95
Class 529-A:
Year ended 9/30/2006		12.27		.91		.05			.96			(.93	)		12.30	8.21			92				.74				.70				7.47
Year ended 9/30/2005		12.26		.88		.01			.89			(.88	)		12.27	7.44			66				.77				.75				7.09
Year ended 9/30/2004		11.88		.86		.35			1.21			(.83	)		12.26	10.48			48				.76				.76				7.12
Year ended 9/30/2003		9.62		.92		2.25			3.17			(.91	)		11.88	34.17			28				.77				.77				8.36
Period from 2/19/2002 to 9/30/2002		11.37		.65		(1.76	)		(1.11	)		(.64	)		9.62	(10.11	)		7				1.07		(5	)	1.07		(5	)	10.40		(5	)
Class 529-B:
Year ended 9/30/2006		12.27		.81		.05			.86			(.83	)		12.30	7.30			18				1.58				1.55				6.63
Year ended 9/30/2005		12.26		.77		.01			.78			(.77	)		12.27	6.52			15				1.64				1.61				6.22
Year ended 9/30/2004		11.88		.75		.35			1.10			(.72	)		12.26	9.47			12				1.67				1.67				6.20
Year ended 9/30/2003		9.62		.82		2.25			3.07			(.81	)		11.88	33.01			7				1.73				1.73				7.36
Period from 2/25/2002 to 9/30/2002		11.23		.59		(1.63	)		(1.04	)		(.57	)		9.62	(9.54	)		2				1.82		(5	)	1.82		(5	)	9.67		(5	)
Class 529-C:
Year ended 9/30/2006		12.27		.81		.05			.86			(.83	)		12.30	7.31			40				1.57				1.54				6.64
Year ended 9/30/2005		12.26		.77		.01			.78			(.77	)		12.27	6.53			32				1.63				1.60				6.23
Year ended 9/30/2004		11.88		.75		.35			1.10			(.72	)		12.26	9.49			25				1.66				1.66				6.21
Year ended 9/30/2003		9.62		.82		2.25			3.07			(.81	)		11.88	33.03			16				1.71				1.71				7.43
Period from 2/19/2002 to 9/30/2002		11.37		.60		(1.76	)		(1.16	)		(.59	)		9.62	(10.52	)		4				1.80		(5	)	1.80		(5	)	9.65		(5	)
Class 529-E:
Year ended 9/30/2006		12.27		.88		.05			.93			(.90	)		12.30	7.88			5				1.05				1.01				7.17
Year ended 9/30/2005		12.26		.84		.01			.85			(.84	)		12.27	7.09			4				1.10				1.07				6.77
Year ended 9/30/2004		11.88		.82		.35			1.17			(.79	)		12.26	10.06			3				1.13				1.13				6.75
Year ended 9/30/2003		9.62		.88		2.25			3.13			(.87	)		11.88	33.73			2				1.18				1.18				7.94
Period from 3/15/2002 to 9/30/2002		11.57		.57		(1.96	)		(1.39	)		(.56	)		9.62	(12.29	)		-		(6	)	1.27		(5	)	1.27		(5	)	10.45		(5	)
Please see page 24 for footnotes.
Class 529-F:
Year ended 9/30/2006	$	12.27	$	.94	$	.05		$	.99		$	(.96	)	$	12.30	8.41	%	$	4				.55	%			.52	%			7.66	%
Year ended 9/30/2005		12.26		.88		.01			.89			(.88	)		12.27	7.45			3				.75				.72				7.13
Year ended 9/30/2004		11.88		.85		.35			1.20			(.82	)		12.26	10.34			2				.88				.88				6.99
Year ended 9/30/2003		9.62		.91		2.25			3.16			(.90	)		11.88	34.06			1				.92				.92				7.96
Period from 9/16/2002 to 9/30/2002		9.88		.08		(.30	)		(.22	)		(.04	)		9.62	(2.23	)		-		(6	)	.05				.05				.77
Class R-1:
Year ended 9/30/2006		12.27		.82		.05			.87			(.84	)		12.30	7.35			8				1.59				1.50				6.68
Year ended 9/30/2005		12.26		.78		.01			.79			(.78	)		12.27	6.61			6				1.61				1.52				6.35
Year ended 9/30/2004		11.88		.76		.35			1.11			(.73	)		12.26	9.59			3				1.68				1.56				6.32
Year ended 9/30/2003		9.62		.83		2.25			3.08			(.82	)		11.88	33.16			1				2.01				1.60				7.20
Period from 7/11/2002 to 9/30/2002		10.00		.23		(.40	)		(.17	)		(.21	)		9.62	(1.70	)		-		(6	)	2.07				.38				2.32
Class R-2:
Year ended 9/30/2006		12.27		.82		.05			.87			(.84	)		12.30	7.37			106				1.90				1.48				6.70
Year ended 9/30/2005		12.26		.79		.01			.80			(.79	)		12.27	6.64			74				1.94				1.49				6.36
Year ended 9/30/2004		11.88		.77		.35			1.12			(.74	)		12.26	9.63			44				2.10				1.53				6.36
Year ended 9/30/2003		9.62		.84		2.25			3.09			(.83	)		11.88	33.21			15				2.31				1.57				7.34
Period from 6/18/2002 to 9/30/2002		10.76		.31		(1.18	)		(.87	)		(.27	)		9.62	(8.05	)		-		(6	)	.85				.48				3.17
Class R-3:
Year ended 9/30/2006		12.27		.87		.05			.92			(.89	)		12.30	7.84			134				1.08				1.05				7.13
Year ended 9/30/2005		12.26		.84		.01			.85			(.84	)		12.27	7.06			97				1.13				1.10				6.74
Year ended 9/30/2004		11.88		.82		.35			1.17			(.79	)		12.26	10.05			58				1.15				1.14				6.76
Year ended 9/30/2003		9.62		.88		2.25			3.13			(.87	)		11.88	33.71			14				1.28				1.18				7.74
Period from 6/21/2002 to 9/30/2002		10.60		.31		(1.01	)		(.70	)		(.28	)		9.62	(6.63	)		1				.51				.36				3.21
Class R-4:
Year ended 9/30/2006		12.27		.91		.05			.96			(.93	)		12.30	8.19			73				.75				.72				7.46
Year ended 9/30/2005		12.26		.88		.01			.89			(.88	)		12.27	7.46			42				.75				.72				7.14
Year ended 9/30/2004		11.88		.86		.35			1.21			(.83	)		12.26	10.45			24				.79				.78				7.11
Year ended 9/30/2003		9.62		.92		2.25			3.17			(.91	)		11.88	34.17			9				.86				.83				8.13
Period from 7/19/2002 to 9/30/2002		9.97		.22		(.38	)		(.16	)		(.19	)		9.62	(1.58	)		-		(6	)	9.55				.14				2.25
Class R-5:
Year ended 9/30/2006		12.27		.95		.05			1.00			(.97	)		12.30	8.51			84				.46				.42				7.75
Year ended 9/30/2005		12.26		.92		.01			.93			(.92	)		12.27	7.78			63				.46				.43				7.37
Year ended 9/30/2004		11.88		.90		.35			1.25			(.87	)		12.26	10.80			74				.47				.47				7.39
Year ended 9/30/2003		9.62		.95		2.25			3.20			(.94	)		11.88	34.61			75				.52				.52				8.77
Period from 5/15/2002 to 9/30/2002		11.30		.42		(1.70	)		(1.28	)		(.40	)		9.62	(11.41	)		42				.23				.23				4.25

	Year ended September 30
	2006		2005		2004		2003		2002
Portfolio turnover rate for all classes of shares	41	%	39	%	39	%	41	%	34	%

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

(2) Based on average shares outstanding.

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

(4) The ratios in this column reflect the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown,

CRMC reduced fees for investment advisory services for all share classes. In addition, during the start-up period for the retirement plan

share classes (except Class R-5), CRMC agreed to pay a portion of the fees related to transfer agent services.

(5) Annualized.

(6) Amount less than $1 million.

See Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

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

We have audited the accompanying statement of assets and liabilities of American High-Income Trust (the “Fund”), including the summary investment portfolio, as of September 30, 2006, 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 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, 2006, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of American High-Income Trust as of September 30, 2006, 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 8, 2006

Expense exampleunaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2006, through September 30, 2006).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

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

	Beginning account value 4/1/2006		Ending account value 9/30/2006		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,038.32	$	3.27		.64	%
Class A -- assumed 5% return		1,000.00		1,021.86		3.24		.64
Class B -- actual return		1,000.00		1,034.32		7.24		1.42
Class B -- assumed 5% return		1,000.00		1,017.95		7.18		1.42
Class C -- actual return		1,000.00		1,034.09		7.39		1.45
Class C -- assumed 5% return		1,000.00		1,017.80		7.33		1.45
Class F -- actual return		1,000.00		1,038.17		3.42		.67
Class F -- assumed 5% return		1,000.00		1,021.71		3.40		.67
Class 529-A -- actual return		1,000.00		1,038.10		3.47		.68
Class 529-A -- assumed 5% return		1,000.00		1,021.66		3.45		.68
Class 529-B -- actual return		1,000.00		1,033.66		7.85		1.54
Class 529-B -- assumed 5% return		1,000.00		1,017.35		7.79		1.54
Class 529-C -- actual return		1,000.00		1,033.69		7.85		1.54
Class 529-C -- assumed 5% return		1,000.00		1,017.35		7.79		1.54
Class 529-E -- actual return		1,000.00		1,036.42		5.16		1.01
Class 529-E -- assumed 5% return		1,000.00		1,020.00		5.11		1.01
Class 529-F -- actual return		1,000.00		1,039.02		2.61		.51
Class 529-F -- assumed 5% return		1,000.00		1,022.51		2.59		.51
Class R-1 -- actual return		1,000.00		1,033.88		7.65		1.50
Class R-1 -- assumed 5% return		1,000.00		1,017.55		7.59		1.50
Class R-2 -- actual return		1,000.00		1,034.00		7.55		1.48
Class R-2 -- assumed 5% return		1,000.00		1,017.65		7.49		1.48
Class R-3 -- actual return		1,000.00		1,036.46		5.16		1.01
Class R-3 -- assumed 5% return		1,000.00		1,020.00		5.11		1.01
Class R-4 -- actual return		1,000.00		1,037.95		3.63		.71
Class R-4 -- assumed 5% return		1,000.00		1,021.51		3.60		.71
Class R-5 -- actual return		1,000.00		1,039.48		2.15		.42
Class R-5 -- assumed 5% return		1,000.00		1,022.96		2.13		.42
* Expenses 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 (183), and divided by 365 (to reflect the one-half year period).

Tax informationunaudited

We are required to advise you within 60 days of the fund’s fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended September 30, 2006:

Qualified dividend income	$	3,130,000
Corporate dividends received deduction		3,108,000
U.S. government income that may be exempt from state taxation		4,306,000

Individual shareholders should refer to their Form 1099-DIV or other tax information, which will be mailed in January 2007, to determine the calendar year amounts to be included on their 2006 tax returns. Shareholders should consult their tax advisers.

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through October 31, 2007. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The information, material facts and conclusions that formed the basis for the committee’s recommendation and the board’s subsequent approval are described below.

1. Information reviewed

Materials reviewed— During the course of each year, board members review a wide variety of materials relating to the services provided by CRMC, including reports on the fund’s investment results, portfolio composition, portfolio trading practices, shareholder services, and other information relating to the nature, extent and quality of services provided by CRMC to the fund. In addition, the committee requests and reviews supplementary information that includes extensive materials regarding the fund’s investment results, advisory fee and expense comparisons, financial and profitability information regarding CRMC, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management and administrative services to the fund.

Review process— The committee received assistance and advice regarding legal and industry standards from independent counsel to the board. The committee discussed the approval of the agreement with CRMC representatives and in a private session with counsel at which no representatives of CRMC were present. In deciding to recommend approval of the agreement, the committee did not identify any single issue or particular piece of information that, in isolation, was the controlling factor. This summary describes the most important, but not all, of the factors considered by the board and the committee.

2. Nature, extent and quality of services

CRMC, its personnel and its resources— The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address the recent growth in assets under management. The board and the committee also considered that CRMC made available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, investment results and portfolio accounting. They considered CRMC’s commitment to investing in information technology supporting investment management and compliance. They further considered CRMC’s continuing need to attract and retain qualified personnel and to maintain and enhance its resources and systems. The board and the committee also considered the benefits to fund shareholders from investing in a fund that is part of a larger family of funds offering a variety of investment objectives.

Other services— The board and the committee considered CRMC’s policies, procedures and systems designed to comply with applicable laws and regulations and its commitment to compliance; its efforts to keep the board members informed; and its attention to matters that may involve potential conflicts of interest with the fund. The board and the committee also considered the nature, extent, quality and cost of administrative, distribution and shareholder services provided by CRMC to the fund under the agreement and other agreements, including the information technology, legal, and fund accounting and treasury functions.

3. Investment results

The board and committee considered the investment results of the fund in light of its primary objective of providing a high level of current income and its secondary objective of capital appreciation. Among other things, they compared the fund’s total returns with the average returns of all funds included in the Lipper High Current Yield Bond Funds category (the Lipper category that includes the fund) and the Lipper High Current Yield Bond Funds Index (composed of the 30 largest funds in the category each year). The board and the committee noted that for the six months ended June 2006, and the three-, five- and 10-year periods ended June 30, 2006, the fund’s investment results exceeded both measurements.

4. Advisory fees and total expenses

The board and the committee reviewed the advisory fees and total expenses of the fund (each as a percentage of average net assets) and compared such amounts with the median fee and expense levels of all other funds in the Lipper High Current Yield Bond Funds category and the Lipper High Current Yield Bond Funds Index as of September 30, 2005. The board and the committee observed that the fund’s advisory fees and total expenses were well below the median fees and expenses for all such other funds as of the end of each of the fund’s last 10 fiscal years. The board and the committee also noted the 10% advisory fee waiver that CRMC put into effect on April 1, 2005.

The board and the committee also reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with similar investment mandates. They noted that, although the fees paid by those clients generally were lower than those paid by American Funds, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, as well as the resulting level of profits to CRMC, comparing those to the reported results of several large, publicly held investment management companies. The committee also received information during previous periods regarding the structure and manner in which CRMC’s investment professionals were compensated and CRMC’s view of the relationship of such compensation to the attraction and retention of quality personnel. The board and the committee considered CRMC’s willingness to invest in technology, infrastructure and staff to reinforce and offer new services and to accommodate changing regulatory requirements. They further considered that breakpoint discounts in the fund’s advisory fee structure reduce the level of fees charged by CRMC to the fund as fund assets increase. They also considered the impact of CRMC’s current 10% advisory fee waiver.

6. Ancillary benefits

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

7. Conclusions

Based on their review, including their consideration of each of the factors referred to above, the board and the committee concluded that the agreement is fair and reasonable to the fund and its shareholders, that the fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund, that each of the factors discussed above supported approval of the agreement, and that approval of the agreement was in the best interests of the fund and its shareholders.

Other share class results

unaudited

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Class B, Class C, Class F and Class 529
Average annual total returns for periods ended September 30, 2006:
	1 year		5 years		Life of class
Class B shares— first sold 3/15/00
Reflecting applicable contingent deferred sales
charge (CDSC), maximum of 5%, payable only
if shares are sold within six years of purchase	+2.44	%	+9.11	%	+6.40	%
Not reflecting CDSC	+7.44	%	+9.39	%	+6.40	%
Class C shares— first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase	+6.39	%	+9.31	%	+7.34	%
Not reflecting CDSC	+7.39	%	+9.31	%	+7.34	%
Class F shares*— first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm	+8.23	%	+10.14	%	+8.12	%
Class 529-A shares†— first sold 2/19/02
Reflecting 3.75% maximum sales charge	+4.13	%	—		+9.05	%
Not reflecting maximum sales charge	+8.21	%	—		+9.95	%
Class 529-B shares†— first sold 2/25/02
Reflecting applicable CDSC, maximum of 5%,
payable only if shares are sold within
six years of purchase	+2.30	%	—		+8.99	%
Not reflecting CDSC	+7.30	%	—		+9.31	%
Class 529-C shares†— first sold 2/19/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase	+6.31	%	—		+9.03	%
Not reflecting CDSC	+7.31	%	—		+9.03	%
Class 529-E shares*†— first sold 3/15/02	+7.88	%	—		+9.19	%
Class 529-F shares*†— first sold 9/16/02
Not reflecting annual asset-based fee charged by
sponsoring firm	+8.41	%	—		+13.79	%

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 23 and 24 for details.

*These shares are sold without any initial or contingent deferred sales charge.

^†Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee.

Board of trustees

“Independent” trustees
	Year first
	elected
	a trustee
Name and age	of the fund1	Principal occupation(s) during past five years
Ambassador	1999	Corporate director and author; former U.S.
Richard G. Capen, Jr., 72		Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc. (communications company); former Chairman and Publisher, The Miami Herald
H. Frederick Christie, 73	1987	Private investor; former President and CEO, The Mission Group (non-utility holding company, subsidiary of Southern California Edison Company)
Diane C. Creel, 58	1994	Chairman of the Board, President and CEO, Ecovation, Inc. (organic waste management); former President and CEO, The Earth Technology Corporation (international consulting engineering)
Martin Fenton, 71	1989	Chairman of the Board, Senior Resource Group LLC
Chairman of the Board		(development and management of senior living
(Independent and		communities)
Non-Executive)
Leonard R. Fuller, 60	1994	President and CEO, Fuller Consulting (financial management consulting firm)
R. Clark Hooper, 60	2005	President, Dumbarton Group LLC (consulting); former Executive Vice President — Policy and Oversight, NASD
Richard G. Newman, 72	1991	Chairman of the Board, AECOM Technology Corporation (engineering, consulting and professional technical services)
Frank M. Sanchez, 63	1999	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)
“Independent” trustees
	Number of
	portfolios
	in fund
	complex2
	overseen by
Name and age	trustee	Other directorships3 held by trustee
Ambassador	15	Carnival Corporation
Richard G. Capen, Jr., 72
H. Frederick Christie, 73	20	Ducommun Incorporated; IHOP Corporation; Southwest Water Company
Diane C. Creel, 58	13	Allegheny Technologies; BF Goodrich; Foster Wheeler Ltd.
Martin Fenton, 71	17	None
Chairman of the Board
(Independent and
Non-Executive)
Leonard R. Fuller, 60	15	None
R. Clark Hooper, 60	18	JPMorgan Value Opportunities Fund
Richard G. Newman, 72	14	Sempra Energy; Southwest Water Company
Frank M. Sanchez, 63	13	None
“Interested” trustees4
	Year first
	elected a
	trustee or	Principal occupation(s) during past five years and
Name, age and	officer of	positions held with affiliated entities or the principal
position with fund	the fund1	underwriter of the fund
Abner D. Goldstine, 76	1987	Senior Vice President and Director, Capital
Vice Chairman of the Board		Research and Management Company
Paul G. Haaga, Jr., 57	1987	Vice Chairman of the Board, Capital Research and
Vice Chairman of the Board		Management Company; Director, The Capital Group Companies, Inc.5
David C. Barclay, 50	1995	Senior Vice President, Capital Research and
President		Management Company; Director, The Capital Group Companies, Inc.5
“Interested” trustees4
	Number of
	portfolios
	in fund
	complex2
Name, age and	overseen by
position with fund	trustee	Other directorships3 held by trustee
Abner D. Goldstine, 76	13	None
Vice Chairman of the Board
Paul G. Haaga, Jr., 57	16	None
Vice Chairman of the Board
David C. Barclay, 50	1	None
President

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

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

²Capital Research and Management Company manages the American Funds, consisting of 30 funds. Capital Research and Management Company also manages American Funds Insurance Series,^® which serves as the underlying investment vehicle for certain variable insurance contracts, and Endowments, whose shareholders are limited to certain nonprofit organizations.

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

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

⁵Company affiliated with Capital Research and Management Company.

Other officers
	Year first
	elected	Principal occupation(s) during past five years
Name, age and	an officer	and positions held with affiliated entities or the
position with fund	of the fund1	principal underwriter of the fund
Susan M. Tolson, 44	1997	Senior Vice President, Capital Research Company2
Senior Vice President
Jennifer L. Hinman, 48	2001	Vice President and Director, Capital Research
Vice President		Company;2 Director, Capital International Research, Inc.2
Kristine M. Nishiyama, 36	2003	Vice President and Counsel — Fund Business
Vice President		Management Group, Capital Research and Management Company; Vice President and Counsel, Capital Bank and Trust Company2
Kimberly S. Verdick, 42	1994	Vice President — Fund Business Management
Secretary		Group, Capital Research and Management Company
Susi M. Silverman, 36	2001	Vice President — Fund Business Management
Treasurer		Group, Capital Research and Management Company
Sharon G. Moseley, 38	2003	Vice President — Fund Business Management
Assistant Treasurer		Group, Capital Research and Management Company

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

²Company affiliated with Capital Research and Management Company.

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

135 South State College Boulevard

Brea, CA 92821-5823

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address nearest you.)

P.O. Box 25065

Santa Ana, CA 92799-5065

P.O. Box 659522

San Antonio, TX 78265-9522

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, CA 90071-2228

Independent registered public

accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

There are several ways to invest in American High-Income Trust. Class A shares are subject to a 3.75% maximum up-front sales charge that declines for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. Other share classes, which are generally not available for certain employer-sponsored retirement plans, have no up-front sales charges but are subject to additional annual expenses and fees. Annual expenses for Class B shares were 0.77 percentage points higher than for Class A shares; Class B shares convert to Class A shares after eight years of ownership. If redeemed within six years, Class B shares may also be subject to a contingent deferred sales charge (“CDSC”) of up to 5% that declines over time. Class C shares were subject to annual expenses 0.81 percentage points higher than those for Class A shares and a 1% CDSC if redeemed within the first year after purchase. Class C shares convert to Class F shares after 10 years. Class F shares, which are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisers, had higher annual expenses (by 0.03 percentage points) than did Class A shares, and an annual asset-based fee charged by the sponsoring firm. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.

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

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

A complete September 30, 2006, portfolio of American High-Income Trust’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

American High-Income Trust files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of American High-Income Trust, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2006, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - American Funds^®]

The right choice for the long term^®

What makes American Funds different?

For 75 years, we have followed a consistent philosophy that we firmly believe is in our investors’ best interests. The range of opportunities offered by our family of just 30 carefully conceived, broadly diversified funds has attracted over 35 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects.

•An extensive global research effort

American Funds investment professionals search the world to gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

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

•Experienced investment professionals

American Funds portfolio counselors have an average of 23 years of investment experience, providing a wealth of knowledge and experience that few organizations have.

•A commitment to low operating expenses

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

30 mutual funds, consistent philosophy, consistent results

•Growth funds

Emphasis on long-term growth through stocks

AMCAP Fund^®

EuroPacific Growth Fund^®

The Growth Fund of America^®

The New Economy Fund^®

New Perspective Fund^®

New World Fund^SM

SMALLCAP World Fund^®

•Growth-and-income funds

Emphasis on long-term growth and dividends through stocks

American Mutual Fund^®

Capital World Growth and Income Fund^SM

Fundamental Investors^SM

The Investment Company of America^®

Washington Mutual Investors Fund^SM

•Equity-income funds

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

Capital Income Builder^®

The Income Fund of America^®

•Balanced fund

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

American Balanced Fund^®

•Bond funds

Emphasis on current income through bonds

>American High-Income Trust^SM

The Bond Fund of America^SM

Capital World Bond Fund^®

Intermediate Bond Fund of America^®

Short-Term Bond Fund of America^SM

U.S. Government Securities Fund^SM

•Tax-exempt bond funds

Emphasis on tax-free current income through municipal bonds

American High-Income Municipal Bond Fund^®

Limited Term Tax-Exempt Bond Fund of America^SM

The Tax-Exempt Bond Fund of America^®

State-specific tax-exempt funds

The Tax-Exempt Fund of California^®

The Tax-Exempt Fund of Maryland^®

The Tax-Exempt Fund of Virginia^®

•Money market funds

The Cash Management Trust of America^®

The Tax-Exempt Money Fund of America^SM

The U.S. Treasury Money Fund of America^SM

The Capital Group Companies

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

Lit. No. MFGEAR-921-1106P

Litho in USA RCG/GP/8049-S7520

Printed on recycled paper

ITEM 2 - Code of Ethics

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

ITEM 3 - Audit Committee Financial Expert

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

ITEM 4 - Principal Accountant Fees and Services

Registrant:
	a) Audit Fees:
		2005	$76,000
		2006	$84,000
	b) Audit-Related Fees:
		2005	$2,000
		2006	$1,000
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Auditing Standards Number 70 issued by the American Institute of Certified Public Accountants.
	c) Tax Fees:
		2005	$6,000
		2006	$6,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
	d) All Other Fees:
		2005	None
		2006	None
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a) Not Applicable
	b) Audit-Related Fees:
		2005	$338,000
		2006	$553,000
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Auditing Standards Number 70 issued by the American Institute of Certified Public Accountants.
	c) Tax Fees:
		2005	None
		2006	$9,000
		The tax fees consist of consulting services relating to the registrant’s investments.
	d) All Other Fees:
		2005	$27,000
		2006	$9,000
		The other fees consist of consulting services related to the Registrant’s compliance program.

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

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant and the adviser and affiliates that provide ongoing services to the Registrant were $1,037,000 for fiscal year 2005 and $865,000 for fiscal year 2006. The non-audit services represented by these amounts were brought to the attention of the Committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 - Audit Committee of Listed Registrants

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

ITEM 6 - Schedule of Investments

[logo - American Funds®]

American High-Income Trust^SM

Investment portfolio

September 30, 2006

Bonds & notes — 88.48%	Principal amount  (000)			Market value (000)
CORPORATE BONDS & NOTES — 83.37%
CONSUMER DISCRETIONARY — 23.02%
CCH II, LLC and CCH II Capital Corp. 10.25% 2010	$	14,105		$	14,458
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75% 2011		6,000			4,830
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 13.50% 2011		5,525			4,503
Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 0%/12.125% 20121		2,850			1,974
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20122		45,950			46,524
Charter Communications Operating, LLC, Term Loan B, 8.125% 20133,4		51,500			51,822
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013		44,665			45,167
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20142		24,800			25,327
CCH I, LLC and CCH I Capital Corp. 11.00% 2015		4,750			4,346
General Motors Corp. 7.20% 2011		96,220			89,124
General Motors Corp. 7.125% 2013		29,300			25,894
General Motors Corp. 7.25% 2013		€3,000			3,535
General Motors Corp. 7.70% 2016	$	32,215			28,228
General Motors Corp. 8.80% 2021		4,300			3,827
General Motors Corp. 9.40% 2021		1,350			1,242
General Motors Corp. 8.25% 2023		3,650			3,180
General Motors Corp. 8.375% 2033		5,000			4,350
Cinemark USA, Inc. 9.00% 2013		58,743			61,240
Cinemark, Inc. 0%/9.75% 20141		21,025			16,873
Mirage Resorts, Inc. 6.75% 2007		5,700			5,757
Mandalay Resort Group, Series B, 10.25% 2007		5,000			5,187
Mirage Resorts, Inc. 6.75% 2008		4,800			4,854
MGM MIRAGE 6.00% 2009		21,677			21,514
Mandalay Resort Group 6.50% 2009		2,000			2,013
MGM MIRAGE 8.50% 2010		6,100			6,519
Mandalay Resort Group 6.375% 2011		1,500			1,474
MGM MIRAGE 6.75% 2012		1,700			1,685
MGM MIRAGE 6.75% 2013		14,930			14,743
MGM MIRAGE 6.625% 2015		6,950			6,707
Delphi Automotive Systems Corp. 6.50% 20095		34,600			30,967
Delphi Corp. 6.50% 20135		17,190			14,697
Delphi Automotive Systems Corp. 6.55% 20065		12,730			11,457
Delphi Automotive Systems Corp. 7.125% 20295		14,300			12,155
K. Hovnanian Enterprises, Inc. 10.50% 2007		10,855			11,343
K. Hovnanian Enterprises, Inc. 6.00% 2010		5,275			4,939
K. Hovnanian Enterprises, Inc. 8.875% 2012		13,475			13,273
K. Hovnanian Enterprises, Inc. 7.75% 2013		6,900			6,348
K. Hovnanian Enterprises, Inc. 6.375% 2014		8,450			7,605
K. Hovnanian Enterprises, Inc. 6.25% 2016		6,000			5,310
K. Hovnanian Enterprises, Inc. 7.50% 2016		7,820			7,341
K. Hovnanian Enterprises, Inc. 8.625% 2017		11,000			10,973
Technical Olympic USA, Inc. 9.00% 2010		28,511			27,264
Technical Olympic USA, Inc. 9.00% 2010		4,280			4,093
Technical Olympic USA, Inc. 7.50% 2011		17,225			13,952
Technical Olympic USA, Inc. 10.375% 2012		23,730			20,645
Linens ‘n Things, Inc. 11.132% 20142,3		66,350			64,360
CanWest Media Inc., Series B, 8.00% 2012		62,808			62,337
Mohegan Tribal Gaming Authority 6.375% 2009		45,540			45,426
Mohegan Tribal Gaming Authority 8.00% 2012		7,775			8,086
Mohegan Tribal Gaming Authority 7.125% 2014		7,825			7,825
Tenneco Automotive Inc., Series B, 10.25% 2013		16,725			18,230
Tenneco Automotive Inc. 8.625% 2014		43,250			42,926
NTL Cable PLC 8.75% 2014		36,525			38,077
NTL Cable PLC 8.75% 2014		€4,500			5,980
NTL Cable PLC 9.75% 2014		£3,000			5,797
NTL Cable PLC 9.125% 2016	$	8,400			8,715
Dex Media East LLC, Dex Media East Finance Co., Series B, 9.875% 2009		5,000			5,294
R.H. Donnelley Inc. 10.875% 20122		3,000			3,315
Dex Media, Inc., Series B, 0%/9.00% 20131		9,000			7,628
R.H. Donnelley Corp., Series A-1, 6.875% 2013		10,650			9,771
R.H. Donnelley Corp., Series A-2, 6.875% 2013		9,000			8,258
Dex Media, Inc., Series B, 8.00% 2013		3,075			3,067
R.H. Donnelley Corp., Series A-3, 8.875% 2016		20,475			20,629
AMC Entertainment Inc. 9.50% 2011		8,282			8,313
AMC Entertainment Inc., Series B, 8.625% 2012		18,825			19,531
AMC Entertainment Inc. 9.875% 2012		18,150			18,740
AMC Entertainment Inc. 8.00% 2014		8,175			7,725
Young Broadcasting Inc. 10.00% 2011		52,810			49,575
Young Broadcasting Inc. 8.75% 2014		2,325			1,988
Grupo Posadas, SA de CV 8.75% 20112		46,225			48,536
Grupo Posadas, SA de CV 8.75% 2011		750			788
William Lyon Homes, Inc. 7.625% 2012		13,925			11,314
William Lyon Homes, Inc. 10.75% 2013		20,395			18,865
William Lyon Homes, Inc. 7.50% 2014		23,085			18,583
American Media Operations, Inc., Series B, 10.25% 2009		34,445			32,206
American Media Operations, Inc. 8.875% 2011		17,615			15,545
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014		45,910			44,762
Bon-Ton Department Stores, Inc. 10.25% 2014		45,200			44,183
Boyd Gaming Corp. 7.75% 2012		26,700			27,534
Boyd Gaming Corp. 8.75% 2012		4,500			4,748
Boyd Gaming Corp. 6.75% 2014		11,000			10,807
Neiman Marcus Group, Inc. 9.00% 20156		38,355			40,944
Burlington Coat Factory Warehouse Corp. 11.125% 20142		41,900			40,643
Dollarama Group LP and Dollarama Corp. 8.875% 2012		39,125			40,103
Toys “R” Us, Inc. 7.625% 2011		18,685			15,882
Toys “R” Us-Delaware, Inc., Term Loan B, 9.643% 20123,4		21,600			22,059
Kabel Deutschland GmbH 10.625% 20142		34,275			36,931
Royal Caribbean Cruises Ltd. 7.00% 2007		10,293			10,447
Royal Caribbean Cruises Ltd. 8.00% 2010		9,900			10,541
Royal Caribbean Cruises Ltd. 8.75% 2011		5,750			6,292
Royal Caribbean Cruises Ltd. 6.875% 2013		3,150			3,155
Royal Caribbean Cruises Ltd. 7.00% 2013		6,390			6,492
Gaylord Entertainment Co. 8.00% 2013		20,509			20,970
Gaylord Entertainment Co. 6.75% 2014		13,600			13,073
Dillard’s, Inc. 6.69% 2007		1,950			1,965
Dillard Department Stores, Inc. 7.15% 2007		2,100			2,116
Dillard’s, Inc. 6.30% 2008		1,382			1,389
Dillard’s, Inc. 6.625% 2008		10,165			10,229
Dillard Department Stores, Inc. 9.125% 2011		8,230			8,960
Dillard Department Stores, Inc. 7.85% 2012		1,900			1,971
Dillard’s, Inc. 7.13% 2018		3,000			2,955
Dillard’s, Inc. 7.00% 2028		3,000			2,756
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012		28,180			29,765
Liberty Media Corp. 7.75% 2009		4,750			4,973
Liberty Media Corp. 5.70% 2013		16,175			15,344
Liberty Media Corp. 8.25% 2030		8,550			8,577
Seneca Gaming Corp. 7.25% 2012		24,275			24,396
Seneca Gaming Corp. 7.25% 2012		3,440			3,457
WCI Communities, Inc. 9.125% 2012		12,847			11,562
WCI Communities, Inc. 7.875% 2013		9,735			8,275
WCI Communities, Inc. 6.625% 2015		9,925			7,965
Telenet Communications NV 9.00% 20134		€8,490			12,009
Telenet Group Holding NV 0%/11.50% 20141,2	$	17,541			15,436
Iesy Repository GmbH 10.125% 2015		€4,750			5,845
Iesy Repository GmbH 10.375% 20152	$	22,850			21,136
Sealy Mattress Co. 8.25% 2014		25,595			26,235
Lenfest Communications, Inc. 7.625% 2008		6,750			6,940
Comcast Corp. 5.80% 20093		7,500			7,518
Comcast Corp. 10.625% 2012		2,245			2,735
Comcast Corp. 5.90% 2016		8,475			8,494
J.C. Penney Co., Inc. 8.00% 2010		14,995			16,141
J.C. Penney Co., Inc. 9.00% 2012		2,980			3,457
J.C. Penney Co., Inc. 7.625% 2097		5,500			5,670
Warnaco, Inc. 8.875% 2013		24,175			25,142
Vidéotron Ltée 6.875% 2014		15,540			15,385
Vidéotron Ltée 6.375% 2015		9,535			9,082
Quebecor Media Inc. 7.75% 2016		23,700			23,848
Education Management LLC and Education Management Finance Corp. 10.25% 20162		22,260			22,872
Visteon Corp. 8.25% 2010		23,100			22,638
Gray Communications Systems, Inc. 9.25% 2011		20,800			21,866
Emmis Operating Co. 6.875% 2012		21,750			21,832
AOL Time Warner Inc. 6.15% 2007		20,000			20,081
DaimlerChrysler North America Holding Corp. 5.82% 20093		20,000			20,023
XM Satellite Radio Holdings Inc. 9.75% 20142		20,055			19,353
Buffets, Inc. 11.25% 2010		17,900			19,019
Aztar Corp. 7.875% 2014		17,325			18,754
Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014		17,450			17,145
Morris Publishing Group, LLC and Morris Publishing Finance Co., Series B, 7.00% 2013		18,025			17,124
CSC Holdings, Inc., Series B, 8.125% 2009		1,750			1,820
Cablevision Systems Corp., Series B, 8.00% 2012		14,865			15,125
Radio One, Inc., Series B, 8.875% 2011		11,100			11,391
Radio One, Inc. 6.375% 2013		6,050			5,536
Reader’s Digest Assn., Inc. 6.50% 2011		16,640			15,891
PETCO Animal Supplies, Inc. 10.75% 2011		14,685			15,566
Adelphia Communications Corp. 10.25% 20065		9,955			6,147
Adelphia Communications Corp. 10.25% 20115		6,850			4,470
Century Communications Corp. 0% 20035		4,565			4,542
LBI Media, Inc. 10.125% 2012		14,030			14,837
Regal Cinemas Corp., Series B, 9.375% 20127		13,300			14,028
MDC Holdings, Inc. 7.00% 2012		10,000			10,168
MDC Holdings, Inc. 5.50% 2013		4,000			3,734
KB Home 6.25% 2015		14,750			13,639
Standard Pacific Corp. 5.125% 2009		8,625			8,151
Standard Pacific Corp. 6.50% 2010		2,000			1,890
Standard Pacific Corp. 9.25% 2012		1,000			970
Standard Pacific Corp. 6.25% 2014		3,000			2,625
D.R. Horton, Inc. 8.00% 2009		10,770			11,276
D.R. Horton, Inc. 7.875% 2011		1,530			1,636
WDAC Subsidiary Corp. 8.375% 20142		10,500			10,605
WDAC Subsidiary Corp. 8.50% 2014		€1,750			2,231
Gamestop Corp. 8.00% 2012	$	11,800			12,213
Fisher Communications, Inc. 8.625% 2014		10,565			11,014
Hilton Hotels Corp. 7.625% 2008		4,700			4,829
Hilton Hotels Corp. 7.20% 2009		5,885			6,113
Riddell Bell Holdings Inc. 8.375% 2012		10,175			10,022
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc. 8.375% 2013		9,307			9,691
Carmike Cinemas, Inc., Term Loan B, 8.64% 20123,4		9,225			9,317
Entercom Radio, LLC 7.625% 2014		7,775			7,629
Stoneridge, Inc. 11.50% 2012		7,842			7,626
Warner Music Group 7.375% 2014		7,760			7,605
Starwood Hotels & Resorts Worldwide, Inc. 7.375% 2007		3,875			3,919
Starwood Hotels & Resorts Worldwide, Inc. 7.875% 2012		2,600			2,743
Toll Corp. 8.25% 2011		5,500			5,651
TRW Automotive Acquisition Corp. 9.375% 2013		4,697			5,026
Viacom Inc. 5.75% 20112		4,500			4,495
Cooper-Standard Automotive Inc. 8.375% 2014		6,000			4,440
Payless ShoeSource, Inc. 8.25% 2013		4,025			4,116
Beazer Homes USA, Inc. 8.375% 2012		1,650			1,650
Beazer Homes USA, Inc. 6.875% 2015		2,225			2,025
RBS-Zero Editora Jornalística SA 11.00% 20102		3,410			3,666
Mediacom Broadband Corp. 8.50% 20152		3,525			3,521
News America Inc. 6.75% 2038		2,990			3,108
Dura Operating Corp., Second Lien Term Loan, 9.109% 20113,4		2,000			1,750
Key Plastics Holdings, Inc., Series B, 10.25% 20075,7		9,650			—
					2,607,137
TELECOMMUNICATION SERVICES — 12.13%
Triton PCS, Inc. 8.75% 2011		46,050			34,653
Triton PCS, Inc. 9.375% 2011		60,855			45,793
Triton PCS, Inc. 8.50% 2013		113,840			106,156
Windstream Corp. 8.125% 20132		25,300			26,976
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015		44,450			47,562
Windstream Corp. 8.625% 20162		90,575			97,368
Dobson Cellular Systems, Inc. 8.375% 20112		32,840			34,277
American Cellular Corp., Series B, 10.00% 2011		52,725			55,493
Dobson Communications Corp. 9.757% 20123		19,850			20,346
Dobson Cellular Systems, Inc. 9.875% 2012		20,375			21,954
Dobson Communications Corp. 8.875% 2013		37,250			37,110
Intelsat, Ltd. 7.625% 2012		3,500			3,080
Intelsat (Bermuda), Ltd. 10.484% 20123		28,150			28,678
Intelsat, Ltd. 6.50% 2013		9,000			7,223
Intelsat (Bermuda), Ltd. 8.25% 2013		36,930			37,576
Intelsat (Bermuda), Ltd. 8.625% 2015		13,350			13,717
Intelsat PanAmSat Opco 9.00% 20162		13,075			13,533
Intelsat (Bermuda), Ltd. 9.25% 20162		27,200			28,730
Intelsat (Bermuda), Ltd. 11.25% 20162		5,550			5,925
Qwest Capital Funding, Inc. 7.00% 2009		20,500			20,705
Qwest Capital Funding, Inc. 7.90% 2010		16,835			17,382
Qwest Communications International Inc. 7.25% 2011		39,575			39,773
Qwest Capital Funding, Inc. 7.25% 2011		29,830			29,979
Qwest Corp. 8.875% 2012		3,600			3,946
Qwest Communications International Inc., Series B, 7.50% 2014		6,000			6,045
U S WEST Capital Funding, Inc. 6.50% 2018		2,000			1,820
Qwest Capital Funding, Inc. 7.625% 2021		2,000			1,947
U S WEST Capital Funding, Inc. 6.875% 2028		13,064			11,758
Qwest Capital Funding, Inc. 7.75% 2031		3,655			3,545
Alamosa (Delaware), Inc. 8.50% 2012		1,925			2,060
Nextel Communications, Inc., Series E, 6.875% 2013		14,500			14,776
Nextel Communications, Inc., Series D, 7.375% 2015		85,378			88,177
Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013		34,505			36,834
Centennial Communications Corp. 11.258% 20133		39,750			41,241
Centennial Communications Corp. and Centennial Cellular Operating Co. LLC and
Centennial Puerto Rico Operations Corp. 8.125% 20143		24,175			23,933
American Tower Corp. 7.25% 2011		8,925			9,237
American Tower Corp. 7.125% 2012		64,360			66,291
American Tower Corp. 7.50% 2012		18,300			18,895
Hawaiian Telcom Communications, Inc. 9.75% 2013		23,340			24,099
Hawaiian Telcom Communications, Inc. 10.789% 20133		19,715			20,257
Hawaiian Telcom Communications, Inc., Series B, 12.50% 2015		8,725			9,205
Rural Cellular Corp. 8.25% 2012		11,850			12,265
Rural Cellular Corp. 11.239% 20123		28,900			29,948
MetroPCS, Inc., Second Lien Loan, 12.938% 20073,4		26,850			28,058
MetroPCS, Inc., First Lien Loan, 10.188% 20113,4		11,575			11,778
Cincinnati Bell Inc. 7.25% 2013		38,425			39,482
Rogers Wireless Inc. 7.25% 2012		11,725			12,326
Rogers Wireless Inc. 7.50% 2015		17,950			19,251
Rogers Cantel Inc. 9.75% 2016		1,625			2,047
NTELOS Inc., Term Loan B, 7.58% 20113,4		21,392			21,418
Millicom International Cellular SA 10.00% 2013		16,550			17,853
Nordic Telephone Co. Holding ApS 8.875% 20162		7,900			8,344
Level 3 Financing, Inc. 12.25% 2013		5,600			6,272
AT&T Corp. 7.30% 20113		4,341			4,710
iPCS, Inc. 11.50% 2012		1,500			1,687
					1,373,494
INDUSTRIALS — 11.05%
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.487% 20124		5,000			5,228
Continental Airlines, Inc., Series 2000-2, Class C, 8.312% 20124		3,883			3,824
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20174		6,914			6,849
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20184		15,320			14,947
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20184		14,562			13,973
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20194		5,924			6,102
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20194		5,597			5,597
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20204		9,817			9,993
Continental Airlines, Inc., Series 2003-ERJ1, Class A, 7.875% 20204		31,092			30,723
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20224		3,734			3,737
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20224		3,060			3,272
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20224		5,059			5,391
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20224		11,786			11,498
United Air Lines, Inc., Series 2001-1, Class A-2, 6.201% 20104		2,383			2,384
United Air Lines, Inc., Series 2000-2, Class B, 7.811% 20114		17,433			18,664
UAL Corp., Term Loan B, 9.08% 20123,4		67,045			67,548
United Air Lines, Inc., Series 2001-1, Class A-1, 6.071% 20144		8,093			8,089
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20154		7,988			8,013
United Air Lines, Inc., 1991 Equipment Trust Certificates, Series A, 10.11% 20064,5		1,213			667
AMR Corp., Series B, 10.45% 2011		1,850			1,776
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20124		17,375			17,104
American Airlines, Inc., Series 2001-2, Class B, 8.608% 2012		5,190			5,381
AMR Corp. 9.00% 2012		16,155			16,317
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20134		19,994			21,506
AMR Corp. 9.00% 2016		1,475			1,460
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20194		25,120			23,158
AMR Corp. 9.88% 2020		1,275			1,221
AMR Corp. 9.80% 2021		2,555			2,472
AMR Corp. 10.00% 2021		9,000			8,730
Allied Waste North America, Inc. 8.50% 2008		16,500			17,366
Allied Waste North America, Inc., Series B, 6.50% 2010		14,500			14,355
Allied Waste North America, Inc., Series B, 5.75% 2011		24,380			23,496
Allied Waste North America, Inc., Series B, 6.375% 2011		5,000			4,900
Allied Waste North America, Inc., Series B, 6.125% 2014		10,000			9,375
Allied Waste North America, Inc., Series B, 7.375% 2014		22,830			22,602
NTK Holdings Inc. 0%/10.75% 20141		52,460			36,460
THL Buildco, Inc. 8.50% 2014		41,445			39,373
Nielsen Finance LLC, Term Loan B, 8.195% 20133,4		12,500			12,500
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 20142		43,750			45,445
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20161,2		29,400			17,383
DRS Technologies, Inc. 6.875% 2013		36,855			36,579
DRS Technologies, Inc. 6.625% 2016		8,900			8,789
DRS Technologies, Inc. 7.625% 2018		22,050			22,491
Goodman Global Holdings, Inc., Series B, 7.875% 2012		44,980			43,068
Goodman Global Holdings, Inc., Series B, 8.329% 20123		10,270			10,437
Accuride Corp. 8.50% 2015		46,015			43,024
DynCorp International and DIV Capital Corp., Series A, 9.50% 2013		41,290			42,942
Horizon Lines, LLC and Horizon Lines Holding Corp. 9.00% 2012		28,948			29,961
H-Lines Finance Holding Corp. 0%/11.00% 20131		12,540			11,098
Ashtead Group PLC 8.625% 20152		19,525			19,916
Ashtead Capital, Inc. 9.00% 20162		15,150			15,832
Standard Aero Holdings, Inc. 8.25% 2014		30,445			29,532
RBS Global, Inc. and Rexnord Corp. 9.50% 20142		20,625			21,038
RBS Global, Inc. and Rexnord Corp. 11.75% 20162		7,750			8,021
TFM, SA de CV 10.25% 2007		2,295			2,358
TFM, SA de CV 9.375% 2012		22,500			23,963
TFM, SA de CV 12.50% 2012		2,310			2,553
K&F Industries, Inc. 7.75% 2014		27,635			27,842
Argo-Tech Corp. 9.25% 2011		25,955			27,123
Northwest Airlines, Inc. 8.70% 20075		5,000			2,788
Northwest Airlines, Inc. 9.875% 20075		9,500			5,332
Northwest Airlines, Inc. 7.875% 20085		15,900			8,825
Northwest Airlines, Inc. 10.00% 20095		7,300			3,960
Northwest Airlines, Inc. 8.875% 20065		8,315			4,552
United Rentals (North America), Inc., Series B, 6.50% 2012		16,675			16,175
United Rentals (North America), Inc. 7.75% 2013		8,625			8,539
ACIH, Inc. 0%/11.50% 20121,2		36,685			24,579
Quebecor World Inc. 8.75% 20162		22,340			21,614
Jacuzzi Brands, Inc. 9.625% 2010		18,900			20,128
Williams Scotsman, Inc. 8.50% 2015		15,775			16,209
Terex Corp. 9.25% 2011		5,200			5,505
Terex Corp. 7.375% 2014		9,075			9,166
CCMG Acquisition Corp. 8.875% 20142		3,175			3,342
CCMG Acquisition Corp. 10.50% 20162		8,600			9,503
Delta Air Lines, Inc. 8.00% 20072,5		15,525			4,386
Delta Air Lines, Inc. 7.90% 20095		5,000			1,450
Delta Air Lines, Inc. 10.125% 20105		1,650			474
Delta Air Lines, Inc., Series 2001-1, Class A-1, 6.619% 20114		2,166			2,165
Delta Air Lines, Inc., Series 2000-1, Class B, 7.92% 2012		2,500			2,414
Delta Air Lines, Inc. 9.75% 20215		2,200			632
Delta Air Lines, Inc. 10.375% 20225		3,000			862
Kansas City Southern Railway Co. 9.50% 2008		3,150			3,292
Kansas City Southern Railway Co. 7.50% 2009		8,817			8,861
American Standard Inc. 8.25% 2009		5,190			5,529
American Standard Inc. 7.625% 2010		4,300			4,541
TransDigm Inc. 7.75% 20142		9,785			9,907
Gol Finance 8.75% (undated)2		9,900			9,652
H&E Equipment Services, Inc. 8.375% 20162		8,650			8,909
Mobile Storage Group, Inc. 9.75% 20142		7,200			7,416
Bombardier Inc. 6.75% 20122		6,600			6,319
UCAR Finance Inc. 10.25% 2012		5,551			5,856
Cummins Inc. 9.50% 2010		5,550			5,840
Park-Ohio Industries, Inc. 8.375% 2014		6,225			5,696
AGCO Corp. 6.875% 2014		€1,500			1,941
					1,251,805
MATERIALS — 9.19%
JSG Funding PLC 9.625% 2012	$	7,267			7,703
JSG Funding PLC 7.75% 2015		€12,250			15,074
JSG Funding PLC 7.75% 2015	$	7,000			6,650
JSG Holdings PLC 11.50% 20156		€41,591			53,912
Smurfit Capital Funding PLC 7.50% 2025	$	4,250			3,995
Georgia-Pacific Corp., First Lien Term Loan B, 7.39% 20123,4		32,016			32,076
Georgia-Pacific Corp., Second Lien Term Loan C, 8.39% 20133,4		49,475			50,032
Lyondell Chemical Co. 9.50% 2008		5,885			6,084
Equistar Chemicals, LP 10.125% 2008		15,650			16,648
Equistar Chemicals, LP and Equistar Funding Corp. 8.75% 2009		10,265			10,676
Equistar Chemicals, LP and Equistar Funding Corp. 10.625% 2011		23,025			24,809
Lyondell Chemical Co. 8.25% 2016		10,150			10,353
Stone Container Corp. 9.75% 2011		5,220			5,403
Jefferson Smurfit Corp. (U.S.) 8.25% 2012		33,010			31,772
Stone Container Corp. 8.375% 2012		8,515			8,217
Jefferson Smurfit Corp. (U.S.) 7.50% 2013		24,030			22,288
Abitibi-Consolidated Co. of Canada 5.25% 2008		6,250			6,031
Abitibi-Consolidated Finance LP 7.875% 2009		7,415			7,378
Abitibi-Consolidated Inc. 8.55% 2010		5,775			5,761
Abitibi-Consolidated Co. of Canada 8.89% 20113		20,500			20,193
Abitibi-Consolidated Co. of Canada 6.00% 2013		1,000			817
Abitibi-Consolidated Co. of Canada 8.375% 2015		29,000			26,535
Associated Materials Inc. 9.75% 2012		22,960			23,017
AMH Holdings, Inc. 0%/11.25% 20141		66,375			36,838
Owens-Illinois, Inc. 8.10% 2007		250			254
Owens-Illinois, Inc. 7.35% 2008		2,440			2,470
Owens-Brockway Glass Container Inc. 8.875% 2009		8,988			9,280
Owens-Illinois, Inc. 7.50% 2010		2,000			2,010
Owens-Brockway Glass Container Inc. 7.75% 2011		15,985			16,505
Owens-Brockway Glass Container Inc. 8.75% 2012		22,225			23,558
Owens-Brockway Glass Container Inc. 8.25% 2013		4,150			4,274
Owens-Brockway Glass Container Inc. 6.75% 2014		€375			464
Building Materials Corp. of America, Series B, 8.00% 2007	$	6,925			6,908
Building Materials Corp. of America 8.00% 2008		15,370			15,312
Building Materials Corp. of America 7.75% 2014		39,235			35,017
Georgia Gulf Corp. 9.50% 20142		40,800			40,647
Georgia Gulf Corp. 10.75% 20162		15,975			15,735
Graphic Packaging International, Inc. 8.50% 2011		32,565			33,461
Graphic Packaging International, Inc. 9.50% 2013		16,925			17,390
Boise Cascade, LLC and Boise Cascade Finance Corp. 8.382% 20123		4,300			4,343
Boise Cascade, LLC and Boise Cascade Finance Corp. 7.125% 2014		42,130			39,497
Nalco Co. 7.75% 2011		21,150			21,679
Nalco Co. 8.875% 2013		12,100			12,675
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 0%/9.00% 20141		6,300			4,977
AEP Industries Inc. 7.875% 2013		24,150			24,271
United States Steel Corp. 10.75% 2008		1,000			1,086
United States Steel Corp. 9.75% 2010		20,923			22,440
Rhodia 10.25% 2010		9,507			10,695
Rhodia 8.875% 2011		392			407
Rhodia SA 9.25% 2011		€8,590			11,728
FMG Finance Pty Ltd. 10.625% 20162	$	22,950			22,147
Earle M. Jorgensen Co. 9.75% 2012		17,840			19,111
Domtar Inc. 7.125% 2015		13,135			12,281
Domtar Inc. 9.50% 2016		6,350			6,652
Plastipak Holdings, Inc. 8.50% 20152		17,990			18,260
Crystal US Holdings 3 LLC and Crystal US Sub 3 Corp., Series B, 0%/10.50% 20141		12,722			10,384
BCP Caylux Holdings Luxembourg SCA 9.625% 2014		7,075			7,712
Ainsworth Lumber Co. Ltd. 7.25% 2012		5,350			3,986
Ainsworth Lumber Co. Ltd. 6.75% 2014		13,730			9,680
Ainsworth Lumber Co. Ltd. 6.75% 2014		5,550			3,913
Chemtura Corp. 6.875% 2016		16,825			16,678
Rockwood Specialties Group, Inc. 10.625% 2011		511			549
Rockwood Specialties Group, Inc. 7.50% 2014		3,700			3,663
Rockwood Specialties Group, Inc. 7.625% 2014		€7,200			9,499
Neenah Paper, Inc. 7.375% 2014	$	14,325			13,501
Covalence Specialty Materials Corp. 10.25% 20162		11,525			11,237
Steel Dynamics, Inc. 9.50% 2009		9,800			10,155
Graham Packaging Co., LP and GPC Capital Corp. 9.875% 2014		9,000			8,887
Gerdau Ameristeel Corp. and GUSAP Partners 10.375% 2011		7,075			7,659
Freeport-McMoRan Copper & Gold Inc. 6.875% 2014		6,640			6,590
Allegheny Technologies, Inc. 8.375% 2011		5,000			5,287
Exopack Holding Corp. 11.25% 20142		4,050			4,172
Ispat Inland ULC 9.75% 2014		3,233			3,646
Huntsman LLC 11.50% 2012		500			571
Huntsman International LLC 7.50% 2015		€2,250			3,072
Norampac Inc. 6.75% 2013	$	3,500			3,325
Airgas, Inc. 6.25% 2014		3,500			3,281
Novelis Inc. 7.25% 20152		2,750			2,626
AK Steel Corp. 7.75% 2012		2,650			2,594
					1,040,463
ENERGY — 5.92%
Williams Companies, Inc. and Credit Linked Certificate Trust 6.75% 20092		2,000			2,020
Williams Companies, Inc. 6.375% 20102		6,000			6,000
Williams Companies, Inc. 7.508% 20102,3		8,000			8,180
Transcontinental Gas Pipe Line Corp., Series B, 7.00% 2011		2,125			2,189
Williams Companies, Inc. 7.125% 2011		1,900			1,957
Williams Partners LP 7.50% 20112		16,525			16,649
Williams Companies, Inc. 8.125% 2012		22,150			23,756
Transcontinental Gas Pipe Line Corp. 6.40% 20162		3,150			3,130
Northwest Pipeline Corp. 7.00% 20162		5,000			5,138
Williams Companies, Inc. 7.875% 2021		5,000			5,250
Transcontinental Gas Pipe Line Corp. 7.25% 2026		11,535			11,809
Williams Companies, Inc. 8.75% 2032		39,370			43,307
El Paso Corp. 7.625% 2007		2,000			2,035
El Paso Corp. 6.375% 2009		5,995			6,010
El Paso Corp. 7.75% 2010		16,975			17,654
Sonat Inc. 7.625% 2011		23,325			24,025
El Paso Credit Linked Trust 7.75% 20112		8,800			9,086
El Paso Energy Corp. 7.375% 2012		9,670			9,875
El Paso Corp. 7.875% 2012		1,625			1,694
El Paso Corp. 9.625% 2012		8,500			9,456
El Paso Natural Gas Co. 7.50% 2026		575			604
Tennessee Gas Pipeline Co. 7.00% 2028		4,000			4,004
Southern Natural Gas Co. 7.35% 2031		3,525			3,670
Southern Natural Gas Co. 8.00% 2032		1,950			2,166
Pogo Producing Co. 7.875% 20132		31,450			32,197
Pogo Producing Co. 6.625% 2015		1,725			1,656
Pogo Producing Co. 6.875% 2017		41,700			39,980
Premcor Refining Group Inc. 9.25% 2010		12,675			13,409
Premcor Refining Group Inc. 6.75% 2011		8,475			8,857
Premcor Refining Group Inc. 9.50% 2013		10,425			11,363
Premcor Refining Group Inc. 6.75% 2014		5,000			5,142
Premcor Refining Group Inc. 7.50% 2015		29,775			31,142
Newfield Exploration Co., Series B, 7.45% 2007		1,750			1,778
Newfield Exploration Co. 7.625% 2011		3,500			3,627
Newfield Exploration Co. 6.625% 2014		14,575			14,338
Newfield Exploration Co. 6.625% 2016		36,075			35,263
Drummond Co., Inc. 7.375% 20162		46,205			43,664
Teekay Shipping Corp. 8.875% 2011		30,092			31,898
Ultrapetrol Ltd., First Preferred Ship Mortgage Notes, 9.00% 2014		27,955			25,858
Encore Acquisition Co. 6.00% 2015		23,800			21,896
International Coal Group, Inc. 10.25% 20142		21,750			20,771
American Commercial Lines LLC and ACL Finance Corp. 9.50% 2015		18,367			20,112
Enterprise Products Operating LP 8.375% 20663		16,000			16,870
Overseas Shipholding Group, Inc. 8.25% 2013		6,010			6,250
Overseas Shipholding Group, Inc. 8.75% 2013		4,555			4,897
Peabody Energy Corp., Series B, 6.875% 2013		7,000			6,930
Peabody Energy Corp. 5.875% 2016		4,000			3,690
Massey Energy Co. 6.625% 2010		3,000			2,940
Massey Energy Co. 6.875% 2013		7,925			7,212
Targa Resources, Inc. and Targa Resources Finance Corp. 8.50% 20132		10,060			10,085
OMI Corp. 7.625% 2013		9,500			9,643
Whiting Petroleum Corp. 7.25% 2013		8,850			8,717
Compton Petroleum Finance Corp. 7.625% 2013		7,150			6,936
Pemex Project Funding Master Trust 7.875% 2009		1,400			1,469
Pemex Project Funding Master Trust 8.625% 2022		1,170			1,408
Petrozuata Finance, Inc., Series B, 8.22% 20172,4		300			294
					669,956
FINANCIALS — 5.07%
General Motors Acceptance Corp. 6.125% 2007		17,500			17,478
General Motors Acceptance Corp. 6.125% 2007		5,000			4,994
General Motors Acceptance Corp. 6.15% 2007		14,035			14,021
General Motors Acceptance Corp. 6.243% 20073		3,000			2,990
General Motors Acceptance Corp. 6.875% 2011		4,450			4,431
General Motors Acceptance Corp. 7.25% 2011		45,460			45,762
General Motors Acceptance Corp. 6.875% 2012		14,225			14,097
General Motors Acceptance Corp. 7.00% 2012		31,535			31,466
General Motors Acceptance Corp. 6.75% 2014		19,000			18,577
General Motors Acceptance Corp. 7.60% 20143		15,000			15,065
Ford Motor Credit Co. 7.20% 2007		30,825			30,812
Ford Motor Credit Co. 7.875% 2010		5,000			4,873
Ford Motor Credit Co. 9.75% 20102		44,000			45,466
Ford Motor Credit Co. 7.25% 2011		750			708
Ford Motor Credit Co. 9.875% 2011		5,000			5,179
E*TRADE Financial Corp. 8.00% 2011		4,000			4,160
E*TRADE Financial Corp. 7.375% 2013		2,250			2,312
E*TRADE Financial Corp. 7.875% 2015		36,420			38,514
Host Marriott, LP, Series G, 9.25% 2007		1,725			1,788
Host Marriott, LP, Series I, 9.50% 2007		2,050			2,078
Host Marriott, LP, Series M, 7.00% 2012		23,900			24,288
Host Marriott, LP, Series K, 7.125% 2013		14,375			14,627
Host Marriott, LP, Series O, 6.375% 2015		1,025			999
Providian Financial Corp., Series A, 9.525% 20272		15,000			15,852
Washington Mutual Preferred Funding I Ltd. 6.534% (undated)2,3		25,000			24,647
Rouse Co. 3.625% 2009		12,415			11,783
Rouse Co. 7.20% 2012		12,370			12,713
Rouse Co. 5.375% 2013		3,715			3,453
Rouse Co. 6.75% 20132		5,925			5,951
Kazkommerts International BV 8.50% 20132		3,500			3,701
Kazkommerts International BV 8.50% 2013		1,500			1,586
Kazkommerts International BV 7.875% 20142		10,000			10,200
Kazkommerts International BV 8.00% 20152		6,000			6,090
TuranAlem Finance BV 7.875% 2010		10,000			10,212
TuranAlem Finance BV 7.75% 20132		8,500			8,474
TuranAlem Finance BV 8.50% 20152		2,280			2,324
MBNA Corp. 5.625% 2007		10,000			10,036
MBNA Capital A, Series A, 8.278% 2026		7,500			7,835
Lazard Group LLC 7.125% 2015		14,785			15,430
FelCor Lodging LP 8.50% 20113		11,505			12,238
Advanta Capital Trust I, Series B, 8.99% 2026		12,000			12,210
ILFC E-Capital Trust II 6.25% 20652,3		8,000			8,011
Mizuho Capital Investment (USD) 1 Ltd. and Mizuho Capital Investment (EUR) 1 Ltd. 6.686%
noncumulative preferred (undated)2,3		7,150			7,224
iStar Financial, Inc. 7.00% 2008		2,375			2,434
iStar Financial, Inc., Series B, 4.875% 2009		2,000			1,975
iStar Financial, Inc. 6.00% 2010		2,250			2,290
LaBranche & Co Inc. 11.00% 2012		6,000			6,450
UnumProvident Finance Co. PLC 6.85% 20152		6,250			6,425
Chevy Chase Bank, FSB 6.875% 2013		5,500			5,528
Sovereign Capital Trust I 9.00% 2027		5,000			5,264
BankUnited Capital Trust, BankUnited Financial Corp. 10.25% 2026		4,500			4,748
Crescent Real Estate LP 7.50% 2007		3,500			3,544
Korea First Bank 7.267% 20342,3		870			938
					574,251
UTILITIES — 4.86%
Mission Energy Holding Co. 13.50% 2008		38,350			43,000
Edison Mission Energy 7.73% 2009		35,250			36,396
Edison Mission Energy 7.50% 20132		45,375			46,056
Edison Mission Energy 7.75% 20162		19,725			20,070
Midwest Generation, LLC, Series B, 8.56% 20164		25,378			26,980
Homer City Funding LLC 8.734% 20264		9,342			10,393
Midwest Generation, LLC and Midwest Finance Corp. 8.75% 2034		16,500			17,696
AES Corp. 9.50% 2009		26,032			27,919
AES Corp. 9.375% 2010		13,644			14,804
AES Corp. 8.875% 2011		8,475			9,111
AES Corp. 8.75% 20132		43,985			47,394
AES Gener SA 7.50% 2014		18,350			19,089
AES Corp. 9.00% 20152		15,150			16,400
AES Red Oak, LLC, Series A, 8.54% 20194		4,486			4,800
AES Red Oak, LLC, Series B, 9.20% 20294		5,000			5,550
NRG Energy, Inc. 7.25% 2014		31,750			31,591
NRG Energy, Inc. 7.375% 2016		29,700			29,589
Nevada Power Co., General and Refunding Mortgage Bonds, Series A, 8.25% 2011		4,700			5,198
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series H, 6.25% 2012		3,000			3,072
Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012		2,650			2,745
Nevada Power Co., General and Refunding Mortgage Notes, Series G, 9.00% 2013		19,217			21,064
Sierra Pacific Resources 8.625% 2014		12,000			13,017
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015		2,475			2,476
Nevada Power Co., Series M, 5.95% 20162		1,600			1,606
Sierra Pacific Resources 6.75% 2017		2,000			2,011
Mirant Americas Generation, Inc. 8.30% 2011		5,500			5,534
Mirant Americas Generation, Inc. 9.125% 2031		20,000			20,450
Enersis SA 7.375% 2014		16,800			17,887
PSEG Energy Holdings Inc. 8.625% 2008		15,999			16,679
Calpine Generating Co., LLC and CalGen Finance Corp. 11.08% 20103,4		12,000			12,690
FPL Energy National Wind Portfolio, LLC 6.125% 20192,4		4,423			4,311
FPL Energy American Wind, LLC 6.639% 20232,4		7,104			7,349
Electricidad de Caracas Finance BV 10.25% 20142		7,480			7,873
					550,800
CONSUMER STAPLES — 4.44%
SUPERVALU INC., Term Loan B, 7.188% 20123,4		17,300			17,322
SUPERVALU INC. 7.50% 2012		11,500			11,718
Albertson’s, Inc. 7.45% 2029		16,695			15,547
Albertson’s, Inc. 8.00% 2031		16,055			15,688
Stater Bros. Holdings Inc. 8.89% 20103		8,450			8,577
Stater Bros. Holdings Inc. 8.125% 2012		37,005			37,375
Jean Coutu Group (PJC) Inc. 7.625% 2012		1,425			1,505
Jean Coutu Group (PJC) Inc. 8.50% 2014		40,750			39,426
Rite Aid Corp. 6.125% 20082		7,950			7,821
Rite Aid Corp. 8.125% 2010		1,000			1,007
Rite Aid Corp. 9.50% 2011		9,500			9,868
Rite Aid Corp. 7.50% 2015		7,000			6,667
Rite Aid Corp. 7.70% 2027		8,000			6,370
Rite Aid Corp. 6.875% 2028		12,477			9,061
Dole Food Co., Inc. 7.25% 2010		12,325			11,493
Dole Food Co., Inc. 8.875% 2011		29,390			28,288
Delhaize America, Inc. 8.125% 2011		23,645			25,496
Delhaize America, Inc. 9.00% 2031		9,500			11,176
Pathmark Stores, Inc. 8.75% 2012		29,810			28,990
Petro Stopping Centers, LP and Petro Financial Corp. 9.00% 2012		26,840			27,310
Rayovac Corp. 8.50% 2013		3,885			3,380
Spectrum Brands, Inc. 7.375% 2015		28,710			23,112
Playtex Products, Inc. 8.00% 2011		5,000			5,213
Playtex Products, Inc. 9.375% 2011		16,160			16,968
Vitamin Shoppe Industries, Inc. 12.905% 20122,3		20,610			21,280
Elizabeth Arden, Inc. 7.75% 2014		20,372			20,066
Gold Kist Inc. 10.25% 2014		14,729			17,012
Koninklijke Ahold NV 5.875% 2008		€2,367			3,086
Ahold Finance U.S.A., Inc. 6.25% 2009	$	6,960			7,064
Ahold Lease Pass Through Trust, Series 2001-A-2, 8.62% 20254		4,420			4,555
Winn-Dixie Stores, Inc. 8.875% 20085		18,675			12,419
Winn-Dixie Pass Through Trust, Series 1999-1, Class A-1, 7.803% 20172,4,5		1,971			1,652
Tyson Foods, Inc. 6.85% 20163		12,885			13,290
Del Monte Corp., Series B, 8.625% 2012		10,550			11,117
Roundy’s Supermarkets, Inc., Term Loan B, 8.365% 20113,4		8,955			9,033
Duane Reade Inc. 9.89% 20103		6,000			6,105
Smithfield Foods, Inc. 7.625% 2008		1,125			1,148
Smithfield Foods, Inc., Series A, 8.00% 2009		3,000			3,150
Smithfield Foods, Inc., Series B, 7.75% 2013		925			957
AAC Group Holding Corp. 12.75% 20122,6		1,875			1,969
					503,281
INFORMATION TECHNOLOGY — 3.97%
Sanmina-SCI Corp. 6.75% 2013		2,000			1,895
Sanmina-SCI Corp. 8.125% 2016		77,725			76,559
Celestica Inc. 7.875% 2011		41,170			41,582
Celestica Inc. 7.625% 2013		28,420			28,349
Hughes Network Systems, LLC and HNS Finance Corp. 9.50% 20142		58,375			60,418
Electronic Data Systems Corp. 7.125% 2009		4,800			5,024
Electronic Data Systems Corp., Series B, 6.50% 20133		41,040			41,689
Electronic Data Systems Corp. 7.45% 2029		2,200			2,421
Nortel Networks Ltd. 9.73% 20112,3		10,600			10,997
Nortel Networks Ltd. 10.125% 20132		27,425			29,071
Nortel Networks Ltd. 10.75% 20162		7,325			7,874
SunGard Data Systems Inc. 3.75% 2009		2,550			2,397
SunGard Data Systems Inc. 9.125% 2013		25,145			26,151
SunGard Data Systems Inc. 4.875% 2014		4,500			3,915
SunGard Data Systems Inc. 10.25% 2015		6,000			6,210
Xerox Corp. 9.75% 2009		2,000			2,175
Xerox Corp. 7.125% 2010		19,650			20,534
Xerox Corp. 7.625% 2013		5,000			5,275
Sensata Technologies BV 8.00% 20142		26,130			25,542
Serena Software, Inc. 10.375% 2016		19,117			20,121
Jabil Circuit, Inc. 5.875% 2010		9,250			9,341
Iron Mountain Inc. 7.75% 2015		8,410			8,452
Freescale Semiconductor, Inc. 6.875% 2011		5,000			5,288
Solectron Global Finance, LTD 8.00% 2016		4,400			4,378
Hyundai Semiconductor America, Inc. 8.625% 20072		2,600			2,626
MagnaChip Semiconductor SA and MagnaChip Semiconductor Finance Co. 8.64% 20113		1,625			1,381
Exodus Communications, Inc. 11.625% 20105,7		3,774			—
					449,665
HEALTH CARE — 3.72%
Tenet Healthcare Corp. 6.375% 2011		30,260			26,742
Tenet Healthcare Corp. 7.375% 2013		11,140			10,096
Tenet Healthcare Corp. 9.875% 2014		18,100			18,123
Tenet Healthcare Corp. 9.25% 2015		35,475			34,322
Warner Chilcott Corp. 8.75% 2015		71,014			73,855
HealthSouth Corp. 11.418% 20142,3		36,200			37,105
HealthSouth Corp. 10.75% 20162		32,000			32,840
Concentra Operating Corp. 9.50% 2010		26,400			27,588
Concentra Operating Corp. 9.125% 2012		24,990			26,114
Select Medical Corp. 7.625% 2015		27,350			23,179
Select Medical Holdings Corp. 11.175% 20153		10,000			8,850
Team Finance LLC and Health Finance Corp. 11.25% 2013		27,190			28,006
Accellent Inc. 10.50% 2013		24,325			25,420
Columbia/HCA Healthcare Corp. 7.00% 2007		7,755			7,833
Columbia/HCA Healthcare Corp. 7.25% 2008		1,000			1,012
HCA — The Healthcare Co. 7.875% 2011		1,250			1,202
HCA Inc. 6.30% 2012		2,975			2,525
HCA Inc. 6.95% 2012		2,000			1,757
AMR HoldCo, Inc. and EmCare HoldCo, Inc. 10.00% 2015		13,005			13,915
MedCath Holdings Corp. 9.875% 2012		11,575			12,385
Triad Hospitals, Inc. 7.00% 2012		8,925			8,880
					421,749
NON-U.S. GOVERNMENT & GOVERNMENT AGENCY BONDS & NOTES — 4.28%
Argentina (Republic of) 4.193% 20123,4		36,580			25,335
Argentina (Republic of) 7.255% 20334,6,8		ARS109,942			32,833
Argentina (Republic of) GDP-Linked 2035		347,027			10,289
Argentina (Republic of) 0% 2035	$	70,000			6,860
Argentina (Republic of) 0.797% 20384,8		ARS131,471			16,647
Brazilian Treasury Bill 6.00% 20108		R$26,761			11,155
Brazil (Federal Republic of) Global 10.25% 2013	$	7,125			8,717
Brazil (Federal Republic of) Global 10.50% 2014		3,000			3,777
Brazil (Federal Republic of) Global 8.00% 20184		6,820			7,509
Brazil (Federal Republic of) Global 8.875% 2024		1,895			2,283
Brazil (Federal Republic of) Global 7.125% 2037		2,500			2,559
Brazil (Federal Republic of) Global 11.00% 2040		26,485			34,530
Russian Federation 8.25% 20102,4		4,444			4,678
Russian Federation 12.75% 2028		8,000			14,370
Russian Federation 5.00%/7.50% 20301,4		32,365			36,148
Turkey (Republic of) Treasury Bill 0% 2006		TRY17,000			10,939
Turkey (Republic of) 20.00% 2007		23,983			15,767
Turkey (Republic of) Treasury Bill 0% 2007		11,943			6,959
Turkey (Republic of) Treasury Bill 0% 2007		12,000			6,857
Turkey (Republic of) 15.00% 2010		16,262			9,345
Panama (Republic of) Global 7.125% 2026	$	585			616
Panama (Republic of) Global 8.875% 2027		6,500			8,076
Panama (Republic of) Global 6.70% 20364		28,009			27,869
United Mexican States Government, Series M10, 10.50% 2011		MXP12,320			1,315
United Mexican States Government Global 6.375% 2013	$	3,540			3,731
United Mexican States Government, Series MI10, 8.00% 2013		MXP52,500			4,721
United Mexican States Government Global 11.375% 2016	$	2,501			3,595
United Mexican States Government, Series M20, 8.00% 2023		MXP55,000			4,790
United Mexican States Government, Series M20, 10.00% 2024		70,000			7,267
United Mexican States Government Global 8.30% 2031	$	3,020			3,773
United Mexican States Government Global 7.50% 2033		2,285			2,641
Peru (Republic of) 9.125% 2012		4,909			5,658
Peru (Republic of) 9.875% 2015		13,500			16,774
Peru (Republic of) 8.375% 2016		2,500			2,894
Peru (Republic of) Past Due Interest Eurobond 5.00% 20173,4		331			327
Peru (Republic of) 7.35% 2025		500			535
Dominican Republic 9.50% 20114,6		5,626			6,077
Dominican Republic 9.50% 20112,4,6		3,436			3,711
Dominican Republic 9.04% 20182,4		9,001			10,081
Dominican Republic 9.04% 20184		4,902			5,490
Dominican Republic 6.188% 20243		500			492
Colombia (Republic of) Global 10.00% 2012		1,500			1,756
Colombia (Republic of) Global 10.75% 2013		8,550			10,482
Colombia (Republic of) Global 12.00% 2015		COP3,940,000			1,878
Colombia (Republic of) Global 11.75% 2020	$	1,936			2,720
Colombia (Republic of) Global 10.375% 2033		823			1,123
Columbia (Republic of) Global 7.375% 2037		4,139			4,201
Indonesia (Republic of) 12.25% 2007		IDR28,500,000			3,141
Indonesia (Republic of) 12.50% 2013		77,730,000			9,101
Indonesia (Republic of) 6.875% 20172	$	1,000			1,027
Indonesia (Republic of) 11.00% 2020		IDR30,770,000			3,263
Indonesia (Republic of) 12.90% 2022		45,000,000			5,435
Venezuela (Republic of) 10.75% 2013	$	6,000			7,350
Venezuela (Republic of) Global 8.50% 2014		1,250			1,387
Venezuela (Republic of) 9.25% 2027		3,935			4,828
Venezuela (Republic of) 9.375% 2034		3,000			3,715
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 20142		4,000			5,180
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014		4,000			5,180
Egypt (Arab Republic of) Treasury Bill 0% 2007		EGP38,450			6,533
Egypt (Arab Republic of) Treasury Bill 0% 2007		11,550			1,959
El Salvador (Republic of) 7.75% 20232	$	2,775			3,112
El Salvador (Republic of) 7.65% 20352		4,250			4,579
State of Qatar 9.75% 2030		3,500			5,189
Thai Government 4.125% 2009		THB73,490			1,909
Philippines (Republic of) 7.75% 2031	$	1,000			1,049
Jamaican Government 9.00% 2015		280			300
					484,387
U.S. TREASURY BONDS & NOTES — 0.26%
U.S. Treasury 3.25% 2007		5,000			4,928
U.S. Treasury 6.625% 2007		25,000			25,246
					30,174
MORTGAGE-BACKED OBLIGATIONS4— 0.22%
Tower Ventures, LLC, Series 2006-1, Class E, 6.495% 20362		4,000			3,997
Tower Ventures, LLC, Series 2006-1, Class F, 7.036% 20362		20,380			20,822
					24,819
MUNICIPALS — 0.20%
State of Wisconsin, Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 6.125% 2027		16,720			17,932
State of Louisiana, Tobacco Settlement Authority, Asset-backed Bonds, Series 2001-B, 5.50% 2030		4,500			4,667
					22,599
ASSET-BACKED OBLIGATIONS4— 0.15%
Consumer Credit Reference Index Securities Program Trust, Series 2002-2A, Class FX, 10.421% 20072		16,500			16,771
Total bonds & notes (cost: $9,912,202,000)					10,021,351
Convertible securities — 1.41%		Shares or principal amount			Market  value (000	)
INFORMATION TECHNOLOGY — 0.42%
Fairchild Semiconductor Corp. 5.00% convertible notes 2008	$	17,850,000		$	17,761
Conexant Systems, Inc. 4.00% convertible notes 2007	$	14,700,000			14,590
SCI Systems, Inc. 3.00% convertible debentures 2007	$	12,000,000			11,820
LSI Logic Corp. 4.00% convertible notes 2006	$	3,000,000			3,000
					47,171
CONSUMER DISCRETIONARY — 0.38%
Amazon.com, Inc. 6.875% PEACS convertible notes 2010		€20,645,000			26,649
Amazon.com, Inc. 4.75% convertible debentures 2009	$	8,825,000			8,615
Ford Motor Co. Capital Trust II 6.50% cumulative convertible trust preferred 2032		160,600			5,395
Gray Communications Systems, Inc., Series C, 8.00% convertible preferred 20122,6,7		300			2,565
					43,224
TELECOMMUNICATION SERVICES — 0.23%
American Tower Corp. 5.00% convertible debentures 2010	$	25,925,000			25,925
UTILITIES — 0.19%
AES Trust VII 6.00% convertible preferred 2008		439,925			21,446
FINANCIALS — 0.19%
Equity Office Properties Trust, Series B, 5.25% convertible preferred 2008		200,000			11,568
Crescent Real Estate Equities Co., Series A, 6.75% convertible preferred		450,000			9,864
					21,432
Total convertible securities (cost: $139,429,000)					159,198
Preferred securities — 1.86%		Shares
FINANCIALS — 1.83%
Fuji JGB Investment LLC, Series A, 9.87% noncumulative preferred2,3		52,248,000			55,982
IBJ Preferred Capital Co. LLC, Series A, 8.79% noncumulative preferred2,3		21,180,000			22,320
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities2		1,125,000			32,836
Swire Pacific Offshore Financing Ltd. 9.33% cumulative guaranteed perpetual preferred capital securities2		546,648			14,111
Tokai Preferred Capital Co. LLC, Series A, 9.98% noncumulative preferred2,3		28,963,000			31,060
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative preferred2,3		26,075,000			26,091
SB Treasury Co. LLC, Series A, 9.40% noncumulative preferred2,3		13,297,000			14,136
Fannie Mae, Series O, 7.085% preferred2,3		150,000			7,978
Chevy Chase Preferred Capital Corp., Series A, 10.375% exchangeable preferred		55,994			3,001
					207,515
CONSUMER DISCRETIONARY — 0.03%
Delphi Corp., Series A, 8.25% cumulative trust preferred 20339		178,800			2,861
Adelphia Communications Corp., Series B, 13.00% preferred 20099		36,196			18
					2,879
CONSUMER STAPLES — 0.00%
Great Atlantic & Pacific Tea Co., Inc. 9.375% QUIBS preferred 2039		18,500			469
INFORMATION TECHNOLOGY — 0.00%
ZiLOG, Inc. — MOD III Inc., units7,9,10		1,868			278
Preferred securities		Shares			Market value (000	)
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc. 14.00% preferred 20096,7,9		40		$	—
Total preferred securities (cost: $183,407,000)					211,141
Common stocks — 1.85%
TELECOMMUNICATION SERVICES — 0.70%
Dobson Communications Corp., Class A9		3,435,685			24,118
American Tower Corp., Class A9		538,967			19,672
AT&T Inc.		600,000			19,536
Sprint Nextel Corp., Series 1		777,508			13,334
Embarq Corp.		38,875			1,880
Cincinnati Bell Inc.9		70,740			341
XO Holdings, Inc.9		25,291			124
					79,005
UTILITIES — 0.55%
Drax Group PLC9		3,969,950			61,924
INFORMATION TECHNOLOGY — 0.29%
Micron Technology, Inc.2,9		678,656			11,809
Micron Technology, Inc.9		424,160			7,380
Fairchild Semiconductor International, Inc.9		500,000			9,350
ZiLOG, Inc.9,10		1,140,500			4,163
					32,702
HEALTH CARE — 0.16%
UnitedHealth Group Inc.		375,000			18,450
Clarent Hospital Corp.7,9,10		576,849			144
					18,594
CONSUMER DISCRETIONARY — 0.06%
Emmis Communications Corp., Class A9		201,000			2,462
Clear Channel Communications, Inc.		51,012			1,472
Viacom Inc., Class B9		31,612			1,175
CBS Corp., Class B		31,612			891
Radio One, Inc., Class D, nonvoting9		44,000			275
Radio One, Inc., Class A9		22,000			137
					6,412
FINANCIALS — 0.05%
Equity Office Properties Trust		150,000			5,964
INDUSTRIALS — 0.04%
DigitalGlobe Inc.2,7,9		3,064,647			3,065
Delta Air Lines, Inc.2,9		766,165			1,050
UAL Corp.9		20,934			556
					4,671
MISCELLANEOUS — 0.00%
Other common stocks in initial period of acquisition					237
Total common stocks (cost: $154,796,000)					209,509
Warrants — 0.00%		Shares			Market value (000	)
TELECOMMUNICATION SERVICES — 0.00%
XO Holdings, Inc., Series A, warrants, expire 20109		50,587		$	46
XO Holdings, Inc., Series B, warrants, expire 20109		37,939			23
XO Holdings, Inc., Series C, warrants, expire 20109		37,939			14
KMC Telecom Holdings, Inc., warrants, expire 20082,7,9		22,500			—
GT Group Telecom Inc., warrants, expire 20102,7,9		11,000			—
Allegiance Telecom, Inc., warrants, expire 20082,7,9		5,000			—
Total warrants (cost: $1,100,000)					83
Short-term securities — 5.07%		Principal amount (000	)
Clipper Receivables Co., LLC 5.28% due 11/8/20062,11	$	30,800			30,632
Clipper Receivables Co., LLC 5.26% due 10/19-12/1/20062		38,905			38,633
Fannie Mae 5.21% due 10/2/2006		61,200			61,182
Hershey Co. 5.19% due 10/31/20062		30,000			29,866
Hershey Co. 5.19% due 11/8/20062,11		25,000			24,859
Wal-Mart Stores Inc. 5.20%-5.21% due 12/19/20062		27,500			27,188
Wal-Mart Stores Inc. 5.20% due 11/28/20062,11		26,000			25,781
Federal Home Loan Bank 5.15% due 11/29/200611		53,000			52,549
Variable Funding Capital Corp. 5.25% due 10/12-10/18/20062		46,400			46,295
Bank of America Corp. 5.255% due 12/12/2006		40,000			39,585
Caterpillar Financial Services Corp. 5.20% due 10/10/2006		35,000			34,949
Three Pillars Funding, LLC 5.26% due 10/5/20062		34,789			34,764
Gannett Co. 5.21% due 10/26-11/6/20062		32,900			32,751
Triple-A One Funding Corp. 5.25% due 10/11/20062		25,030			24,990
General Electric Capital Services, Inc. 5.24% due 10/4/2006		24,100			24,086
Estée Lauder Companies Inc. 5.20% due 10/5/20062		15,000			14,989
International Lease Finance Corp. 5.23% due 10/24/2006		12,200			12,157
Colgate-Palmolive Co. 5.19% due 10/27/20062		9,600			9,563
AT&T Inc. 5.25% due 10/25/20062		9,500			9,465
Total short-term securities (cost: $574,242,000)					574,284
Total investment securities (cost: $10,965,176,000)					11,175,566
Other assets less liabilities					150,791
Net assets				$	11,326,357

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

¹Step bond; coupon rate will increase at a later date.

²Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $2,269,467,000, which represented 20.04% of the net assets of the fund.

³Coupon rate may change periodically.

⁴Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

⁵Scheduled interest and/or principal payment was not received.

⁶Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

⁷Valued under fair value procedures adopted by authority of the board of trustees.

⁸Index-linked bond whose principal amount moves with a government retail price index.

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

¹⁰Represents an affiliated company as defined under the Investment Company Act of 1940.

¹¹This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.

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

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

MFGEFP-921-1106-S6836

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT PORTFOLIO

To the Board of Trustees and Shareholders of

American High-Income Trust:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of American High-Income Trust (the “Fund”) as of September 30, 2006, and for the year then ended and have issued our report thereon dated November 8, 2006, which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR. Our audit also included the Fund’s investment portfolio (the “Schedule”) as of September 30, 2006, appearing in Item 6 of this Form N-CSR. This Schedule is the responsibility of the Fund’s management. Our responsibility is to express an opinion based on our audit. In our opinion, the Schedule referred to above, when considered in relation to the basic financial statements taken as a whole of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

DELOITTE & TOUCHE LLP

November 8, 2006

Costa Mesa, California

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, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

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

AMERICAN HIGH-INCOME TRUST

By /s/ David C. Barclay

David C. Barclay, President and

Principal Executive Officer

Date: December 8, 2006

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

By /s/ David C. Barclay

David C. Barclay, President and

Principal Executive Officer

Date: December 8, 2006

By /s/ Susi M. Silverman

Susi M. Silverman, Treasurer and

Principal Financial Officer

Date: December 8, 2006