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- 2380
The Cash Management Trust of America
(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, 2003
Date of reporting period: September 30, 2003
Julie F. Williams
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
Robert E. Carlson, Esq.
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[logo - American Funds(R)]
The right choice for the long term(R)
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
Trading viewpoints-- A discussion with the funds' managers
[photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at computer
screen]
Annual report for the year ended September 30, 2003
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in high-quality short-term money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA(SM) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality municipal securities with effective maturities of
one year or less.
These money market funds are three of the 29 American Funds, the nation's
third-largest mutual fund family. For more than seven decades, 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
Special report: Trading viewpoints--
A discussion with the funds' managers 2
The Cash Management Trust of America investment portfolio 6
The U.S. Treasury Money Fund of America investment portfolio 21
The Tax-Exempt Money Fund of America investment portfolio 29
Trustees and officers 40
The American Funds family back cover
Fund results in this report were calculated for Class A shares unless otherwise
indicated. Other share class results for The Cash Management Trust of America
can be found on page 20. For the most current investment results, please refer
to americanfunds.com.
SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX
For the months ended September 30, 1998-- September 30, 2003
[chart]
[begin line chart]
SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX
For the months ended September 30, 1998 - September 30, 2003
<s> <c> <c> <c> <c> <c>
Federal Tax-Exempt Cash Management U.S. Treasury Consumer Price
Funds Rate Money Fund (2) Trust of America Money Fund Index (inflation)
of America (3)
Sep-98 5.25 4.69 4.99 4.35 1.49
Oct-98 5.00 4.15 4.74 3.81 1.49
Nov-98 4.75 4.04 4.49 3.72 1.55
Dec-98 4.75 4.27 4.73 3.89 1.61
Jan-99 4.75 3.62 4.47 3.80 1.67
Feb-99 4.75 3.62 4.34 3.83 1.61
Mar-99 4.75 3.73 4.23 3.83 1.73
Apr-99 4.75 4.12 4.26 3.75 2.28
May-99 4.75 4.15 4.34 3.82 2.09
Jun-99 5.00 4.23 4.35 3.79 1.96
Jul-99 5.00 4.10 4.57 4.00 2.14
Aug-99 5.25 4.30 4.75 4.24 2.26
Sep-99 5.25 4.72 4.61 4.32 2.63
Oct-99 5.25 4.66 4.95 4.11 2.56
Nov-99 5.50 4.92 5.00 4.49 2.62
Dec-99 5.50 5.57 5.32 4.47 2.68
Jan-00 5.50 4.41 5.37 4.58 2.74
Feb-00 5.75 4.41 5.20 4.48 3.22
Mar-00 6.00 4.76 5.46 5.08 3.76
Apr-00 6.00 5.67 5.48 5.07 3.07
May-00 6.50 5.77 5.65 5.05 3.19
Jun-00 6.50 6.16 6.06 5.20 3.73
Jul-00 6.50 5.72 5.99 5.21 3.66
Aug-00 6.50 5.88 6.04 5.60 3.41
Sep-00 6.50 6.24 6.06 5.64 3.45
Oct-00 6.50 5.80 6.11 5.44 3.45
Nov-00 6.50 6.19 5.97 5.36 3.45
Dec-00 6.50 6.01 5.94 5.12 3.39
Jan-01 5.50 4.82 5.39 5.15 3.73
Feb-01 5.50 4.22 5.01 4.71 3.53
Mar-01 5.00 4.74 4.67 4.37 2.92
Apr-01 4.50 4.97 4.24 3.65 3.27
May-01 4.00 4.54 3.67 3.42 3.62
Jun-01 3.75 4.10 3.28 3.17 3.25
Jul-01 3.75 3.65 3.19 2.89 2.72
Aug-01 3.50 3.34 3.09 2.96 2.72
Sep-01 3.00 3.06 2.71 2.59 2.65
Oct-01 2.50 2.70 1.98 2.05 2.13
Nov-01 2.00 2.33 1.65 1.60 1.90
Dec-01 1.75 1.94 1.33 1.25 1.55
Jan-02 1.75 1.43 1.17 1.13 1.14
Feb-02 1.75 1.40 1.14 1.10 1.14
Mar-02 1.75 1.32 1.17 1.14 1.48
Apr-02 1.75 1.78 1.25 1.16 1.64
May-02 1.75 1.81 1.26 1.12 1.18
Jun-02 1.75 1.53 1.13 1.09 1.07
Jul-02 1.75 1.37 1.16 1.06 1.46
Aug-02 1.75 1.32 1.15 1.13 1.80
Sep-02 1.75 1.55 1.15 1.10 1.51
Oct-02 1.75 1.61 1.21 1.08 2.03
Nov-02 1.25 1.43 1.00 0.87 2.20
Dec-02 1.25 1.10 0.78 0.71 2.38
Jan-03 1.25 0.84 0.77 0.59 2.60
Feb-03 1.25 0.84 0.89 0.58 2.98
Mar-03 1.25 0.65 0.99 0.58 3.02
Apr-03 1.25 0.93 0.85 0.57 2.22
May-03 1.25 0.93 0.88 0.55 2.06
Jun-03 1.00 0.96 0.68 0.46 2.11
Jul-03 1.00 0.67 0.84 0.42 2.11
Aug-03 1.00 0.54 1.05 0.38 2.16
Sep-03 1.00 0.67 1.06 0.42 2.32
[end line chart]
(1) Equivalent to Securities and Exchange Commission yield.
(2) Represents the fund's taxable equivalent yield calculated at the maximum
effective 35.0% federal tax rate.
(3) Because income paid by The U.S. Treasury Money Fund of America is exempt
from state and local taxes in most states, the fund's taxable equivalent
yield would be higher than the rates shown in the chart.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS.
INVESTMENT RETURNS WILL VARY, SO YOU MAY LOSE MONEY. ALTHOUGH THE FUNDS SEEK TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUNDS. 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. Income from The Tax-Exempt Money Fund of America
may be subject to state or local income taxes and/or federal alternative minimum
taxes. Certain other income may be taxable.
FELLOW SHAREHOLDERS:
When we reported to you one year ago, we were in the midst of an extremely
difficult period for the U.S. economy and stock markets. While the situation has
improved, the recovery has been less than robust. Unemployment, for example,
still remains a concern. In response, many investors are continuing to seek out
the comfort and relative stability of cash funds.
During the 12 months ended September 30, historically low short-term interest
rates limited returns for The Cash Management Trust of America, The U.S.
Treasury Money Fund of America and The Tax-Exempt Money Fund of America.
Nonetheless, the funds were able to protect shareholders from fluctuations in
equity and bond markets. In this environment, inflation, as measured by the
Consumer Price Index (CPI), totaled 2.32%; however, the core CPI (which excludes
volatile food and energy prices and which many economists regard as a more
reliable long-term measure of inflation) was only 1.20%. This is one of the rare
periods in which it has exceeded the returns of the three money market funds.
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA produced an income return of 1.05% with
dividends reinvested for the fiscal year ended September 30, 2003.
THE U.S. TREASURY MONEY FUND OF AMERICA generated a 12-month income return of
0.63% including reinvested dividends. Because all of the fund's earnings are
derived from investments in U.S. Treasury securities, the income paid by the
fund is exempt from state and local taxes.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return
of 0.57%. This return is equivalent to a return of 0.88% for investors in the
35.0% federal tax bracket. A portion of this return may also be exempt from
state and local taxes.
AN AILING ECONOMY ON THE MEND
At the start of the funds' fiscal year in October 2002, the stock market began
to rally and the outlook for the economy improved. In November, to help bolster
the economy, the Federal Reserve Board lowered short-term interest rates by half
a point.
By January 2003, the prospect of war in Iraq advanced, and hopes for an upturn
in the economy diminished once more. Though the war itself was brief, concerns
about the possibility of deflation persisted and in response, the Federal
Reserve cut rates again on June 25 by one quarter of a point to 1.0% -- its
lowest level in 45 years. Since 2000, when the federal funds rate stood at 6.5%,
money market fund yields have trended lower. The present anemic rate level has
had an impact on the returns of all cash funds. However, investors can take
solace in the fact that the three American Funds money market funds have
provided a positive return for the past three fiscal years -- a period marked by
a 27.40% decline in Standard & Poor's 500 Composite Index.
THE IMPORTANCE OF DIVERSIFICATION
Looking ahead, the U.S. economy seems to be on track for recovery. However, the
recent past drives home the importance of a balanced, diversified portfolio --
one that includes a position in a cash fund. Our special report on page 2,
"Trading viewpoints -- A discussion with the funds' managers," provides a look
at how the funds' counselors steadfastly seek out the best options for
shareholders and how your money market funds can play a vital role in your
investment portfolio.
We wish to welcome the many new shareholders who have joined us over the past
year. Since September 2002, the number of shareholder accounts in the three
funds grew to 499,000 from 411,000. We appreciate the confidence you have placed
in us and look forward to helping you meet your long-term financial goals.
Cordially,
/s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
November 10, 2003
Your funds' seven-day yields as of September 30, 2003
The Cash Management Trust of America +1.06%
The U.S. Treasury Money Fund of America +0.42%
The Tax-Exempt Money Fund of America +0.41%
The Tax-Exempt Money Fund of America
(taxable equivalent yield)* +0.63%
*Represents the fund's taxable equivalent yield calculated at the maximum
effective 35.0% federal tax rate.
[Begin Sidebar]
As reported in the press, instances of excessive short-term trading and illegal
"late trading" (trading after 4 p.m. Eastern time) have been discovered at a
number of different fund companies. In several of those cases, fund personnel
engaged in or permitted these activities in clear violation of regulatory
requirements and strict internal policies. This sort of conduct is unethical and
detrimental to long-term shareholders. We will not tolerate it at American
Funds. Although it is often difficult to detect and prevent abusive trading
practices, we are committed to taking action to combat this harmful activity
wherever we find it.
[End Sidebar]
TRADING VIEWPOINTS--
A discussion with the funds' managers
[photo of Terry S. Cook, Belinda A. Heard and Karen Hall discussing paperwork
Terry S. Cook is holding]
The American Funds cash funds comprise hundreds of short-term securities.
Because the holdings all mature within weeks or months, there is a constant need
to replace maturing obligations. Given the funds' goals of stability and safety,
investing these assets starts with solid credit research and requires great
diligence and attention to details.
Terry Cook, Belinda Heard and Karen Hall together invest the holdings in The
Cash Management Trust of America and The U.S. Treasury Money Fund of America. (A
separate team that specializes in municipal debt handles The Tax-Exempt Money
Fund of America.) Every day, these women negotiate the fast-paced market of cash
instruments, bringing to this task years of investment experience and the
expertise of a dedicated group of research analysts. We invite you to hear from
Terry, Belinda and Karen and learn about the market they monitor and the
responsibilities they undertake on behalf of shareholders.
Q: HOW DO YOU VIEW YOUR PRIMARY RESPONSIBILITIES?
BELINDA: We focus on the taxable debt markets. A large portion of the debt we
manage matures in 90 days or less. In the investment world, that's a relatively
narrow window. Corporations issue commercial paper when they have an immediate
need for funds, so time is of the essence.
TERRY: In addition, investor demand for paper is particularly strong, so it
gives us some advantage when we are able to respond quickly.
KAREN: This is especially important with interest rates so low; when every
increment of yield matters to our shareholders. Getting the best deals for the
funds often requires a quick response.
Q: WHAT ARE SOME OF THE THINGS YOU MONITOR WHEN INVESTING THE FUNDS?
TERRY: To begin with, our research analysts cull through the issuers of
commercial paper to recommend those that are, in their minds, very safe and
secure. All of the commercial paper that they recommend is Tier-1 rated, which
is of extremely high quality. This helps to limit risks in the portfolio. We
meet regularly with analysts to review portfolio holdings and discuss specific
credit events.
KAREN: We can also buy other types of highly rated short-term debt securities --
including the most secure -- U.S. Treasury bills. Quality is paramount when it
comes to protecting our shareholders.
TERRY: We actively monitor the cycles of maturing debt in each fund and the
current yields being offered in the market to find the best available
investments. On a given day, we collectively handle anywhere from $200 million
to $300 million for the two funds. We make sure each of the funds is diversified
among various industries and by maturities. We also evaluate the potential for
liquidity, in case we need to sell paper before it matures.
BELINDA: Because we are traders, we are in constant contact with brokers who
assist us by providing a broader picture of the market and liquidity, if the
need arises. These contacts are also helpful in gaining access to new commercial
paper programs. This is especially valuable when demand for an issue is strong
or the supply of paper is limited.
Q: SINCE 2002, THE AMOUNT OF AVAILABLE TOP-TIER CORPORATE COMMERCIAL PAPER HAS
DIMINISHED. WHY IS THAT?
TERRY: Many companies have elected to raise money by issuing longer term debt --
bonds that mature in years instead of months. The corporate commercial paper
market has recently shrunk to about $1.1 trillion, down from about $1.4 trillion
in December 2000. It's at its lowest level in several years.
KAREN: Low interest rates are essentially the cause. In the current interest
rate environment, corporations can raise money at historically low rates for
longer periods of time. For the time being, it creates a bigger challenge for us
as we search for suitable issues for the funds. However, this won't be the
situation forever. Eventually, the supply of commercial paper is likely to
increase.
[Begin Sidebar]
Dedicated, experienced management
[photograph: Terry S. Cook]
[Begin Photo Caption]
Terry S. Cook
21 years experience at
Capital Research and Management
25 years of investment experience
[End Photo Caption]
[photograph: Belinda A. Heard]
[Begin Photo Caption]
Belinda A. Heard
7 years experience at
Capital Research and Management
12 years of investment experience
[End Photo Caption]
[photograph: Karen Hall]
[Begin Photo Caption]
Karen Hall
15 years experience at
Capital Research and Management
16 years of investment experience
[End Photo Caption]
[End Sidebar]
Q: WHAT OTHER SIGNIFICANT CHANGES IN THE MARKET HAVE YOU OBSERVED IN THE PAST
YEAR?
BELINDA: This low interest rate environment has naturally resulted in reduced
returns for all cash funds. It has become increasingly difficult to find
attractive yields on any short-term investments -- without taking on more risk,
which we choose not to do.
TERRY: During the past year, Capital Research voluntarily agreed to absorb a
portion of the fees and expenses associated with certain share classes of the
funds in an effort to help maintain at least a positive return to the
shareholders.
Q: DO CASH FUNDS STILL HAVE VALUE FOR INVESTORS IN THIS LOW RATE ENVIRONMENT?
TERRY: Our funds still provide a valuable function for shareholders. One
important advantage to remember is the liquidity or immediate cash access that
these funds provide. In the event that you need cash on short notice, it will be
there. In the meantime, it earns a money market rate of return. Over longer
periods of time, the funds can serve as a depository for money that is intended
for a periodic investment plan, as well.
KAREN: The American Funds cash funds are more stable than equity or bond funds.
They are a key element in a well-diversified portfolio, a vehicle for preserving
a portion of capital. Although returns are not guaranteed, we have been able to
provide some level of interest income for our shareholders for every year over
the lifetime of each fund.
BELINDA: I would add that shareholders benefit from the experience and
dedication that goes into the management of these funds. The American Funds
money market funds are as actively managed as an equity or bond fund. We
recognize the value of every dollar that comes into the fund and we strive to
preserve that value even under the most challenging market conditions.
[photo of photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at
computer screen]
[Begin Sidebar]
USE YOUR AMERICAN FUNDS MONEY MARKET FUND:
AS A FLEXIBLE CASH RESERVE
"Let's say a couple is shopping for a home and needs to have money ready for a
down payment once they find something they like. If they put their savings into
The Cash Management Trust of America, their money will be ready when they need
it and can earn interest in the meantime. They can also write checks on the
account when needed."
- --TERRY S. COOK
TO PRESERVE CAPITAL
"After the past few years, many investors have learned the importance of having
a portion of their portfolio in cash. Holdings of cash funds that can outpace
the rate of inflation over the long-term are a tremendous advantage. Unlike a
savings or checking account, the American Funds money market funds are actively
managed, and by placing a portion of your assets in one of our funds, you can
preserve your capital while also earning income." -- BELINDA A. HEARD
AS A SHELTER IN VOLATILE MARKETS
"Investors can ride out market volatility by using the funds to accumulate cash
they plan to invest at a later date. Because of the stability they can provide,
the funds are frequently used for this purpose. Investors can take this even
further by using the funds as a holding place for regularly scheduled
investments or payments." -- KAREN HALL [End Sidebar]
[Begin Sidebar]
WHO MANAGES THE TAX-EXEMPT MONEY FUND OF AMERICA?
Like all of the American Funds, The Tax-Exempt Money Fund of America is managed
by a group of dedicated and experienced investment professionals. With over 66
years of combined experience, the fund's portfolio counselors are well suited to
their task.
[begin pie chart]
o Katie Saunders 4 years
o Tanya M. Muncey 12 years
o Susan J. Willander-McDermott 25 years
o Neil Langberg 25 years
[end pie chart]
[End Sidebar]
[Begin Sidebar]
AMERICAN FUNDS MONEY MARKET FUNDS SERVICES
EASY CHECK-WRITING
You can write checks for $250 or more against your Class A share accounts in The
Cash Management Trust of America, The U.S. Treasury Money Fund of America and
The Tax-Exempt Money Fund of America.
EASY INVESTING
Once you've set up an account, you can make additional investments of $50 or
more:
o online at americanfunds.com and by phone once you enroll in American FundsLink
o by mail o through an automatic dollar cost averaging program.
EXCHANGE PRIVILEGES
American Funds offers a full range of funds to suit your investing objectives.
You may make exchanges among virtually all of these funds as your needs or goals
change.* You can also automatically exchange shares in amounts of $50 or more
through an automatic exchange plan or have dividends cross reinvested into
another fund.
EASY WITHDRAWING
You can withdraw money from your account at any time:
o online at americanfunds.com and by phone once you enroll in American FundsLink
o by mail
o through an automatic withdrawal plan through which withdrawals and or
dividend payments can be sent to you, your bank or someone of your choosing.
*In some cases, a sales charge may apply; contact your financial adviser for
details.
[End Sidebar]
The Cash Management Trust of America
Investment portfolio
September 30, 2003
Principal Market
Yield at amount value
acquisition (000) (000)
CERTIFICATES OF DEPOSIT - 2.58%
ING Bank NV
October 14, 2003 1.05% $ 25,000 $25,000
State Street Bank & Trust
October 14, 2003 1.02 50,000 49,999
Wells Fargo Bank, NA
October 15, 2003 1.06 50,000 50,000
November 4, 2003 1.06 50,000 49,999
November 14, 2003 1.06 50,000 49,999
Total certificates of deposit 224,997
COMMERCIAL PAPER - 72.49%
3M Co.
October 30, 2003 1.00 25,000 24,979
Abbey National North America LLC
November 24, 2003 1.01 50,000 49,920
December 8, 2003 1.01 50,000 49,898
Abbott Laboratories Inc. (1)
October 28, 2003 1.01 40,000 39,969
ABN AMRO North America Finance Inc.
October 10, 2003 1.03 50,000 49,986
November 3, 2003 1.05 50,000 49,949
AIG Funding Inc.
November 3, 2003 1.04 25,000 24,975
November 7, 2003 1.04 50,000 49,944
Alcon Capital Corp. (1)
October 27, 2003 1.02 25,000 24,981
American Express Credit Corp.
October 20, 2003 1.04 70,000 69,960
October 22, 2003 1.04 50,000 49,968
American General Finance Corp.
November 3, 2003 1.05 24,000 23,976
American Honda Finance Corp.
October 22, 2003 1.05 33,700 33,678
October 27, 2003 1.04 31,000 30,977
November 5, 2003 1.05 42,000 41,955
November 12, 2003 1.03 18,300 18,277
Anheuser-Busch Cos. Inc. (1)
October 30, 2003 1.00 25,000 24,979
ANZ (Delaware) Inc.
October 20, 2003 1.03 50,000 49,971
November 25, 2003 1.05 50,000 49,918
Asset Securitization Cooperative Corp. (1)
October 8, 2003 1.05 55,000 54,987
October 16, 2003 1.06 50,000 49,976
November 13, 2003 1.06 45,000 44,942
Aventis S.A. (1)
October 9, 2003 1.06 25,000 24,993
November 25, 2003 1.04 25,000 24,960
Bank of Ireland (1)
October 20, 2003 1.06 25,000 24,985
November 10, 2003 1.06 50,000 49,940
November 24, 2003 1.06 50,000 49,919
Bank of Nova Scotia
December 2, 2003 1.03 50,000 49,910
Barclays U.S. Funding Corp.
October 6, 2003 1.03 50,000 49,991
October 14, 2003 1.03 50,000 49,979
BellSouth Corp. (1)
October 8, 2003 1.01 35,000 34,992
October 9, 2003 1.01 50,000 49,987
BMW U.S. Capital Corp.
October 22, 2003 1.03 50,000 49,969
BNP Paribas Finance Inc.
October 14, 2003 1.03 25,000 24,990
October 27, 2003 1.05 25,000 24,980
November 25, 2003 1.03 50,000 49,917
BP Capital Markets PLC
November 14, 2003 1.02 70,000 69,907
CAFCO, LLC (1)
October 1, 2003 1.02 30,000 29,999
November 13, 2003 1.05 25,000 24,968
November 18, 2003 1.06 45,000 44,935
Canadian Wheat Board
October 8, 2003 1.00 50,010 49,999
November 24, 2003 0.97 20,000 19,968
CBA (Delaware) Finance Inc.
October 15, 2003 1.06 25,000 24,989
CDC Commercial Paper Corp. (1)
October 29, 2003 1.04 75,000 74,937
ChevronTexaco Funding Corp.
October 1, 2003 1.02 100,000 99,997
CIESCO LLC
October 23, 2003 1.06 50,000 49,966
Clorox Co.
October 7, 2003 1.01 30,000 29,994
October 23, 2003 1.01 15,000 14,990
Coca-Cola Co.
October 10, 2003 1.02 40,000 39,988
October 17, 2003 1.01 14,000 13,993
October 20, 2003 1.02 30,400 30,382
October 22, 2003 1.02 61,600 61,561
Credit Lyonnais N.A. Inc.
October 3, 2003 1.06 80,200 80,193
October 6, 2003 1.03 50,000 49,991
November 3, 2003 1.05 19,800 19,780
Danske Corp.
October 7, 2003 1.05 25,000 24,995
October 22, 2003 1.05 50,000 49,968
November 5, 2003 1.06 50,000 49,946
Dexia Delaware LLC
October 3, 2003 1.04 25,000 24,998
October 24, 2003 1.06 50,000 49,965
December 1, 2003 1.06 50,000 49,907
Diageo Capital PLC (1)
October 3, 2003 1.02 45,300 45,296
DuPont (E.I.) de Nemours & Co.
October 17, 2003 1.04 25,000 24,988
October 20, 2003 1.03 35,000 34,980
October 24, 2003 1.03 50,000 49,965
November 4, 2003 1.04 25,000 24,974
Edison Asset Securitization LLC (1)
October 10, 2003 1.05 20,000 19,994
October 24, 2003 1.04 40,000 39,972
November 12, 2003 1.06 90,000 89,885
Eksportfinans ASA (1)
October 10, 2003 1.02 17,909 17,904
October 21, 2003 1.04 7,091 7,087
Electricite de France
October 7, 2003 1.03 25,000 24,995
Export Development Canada
October 27, 2003 0.97 30,000 29,978
Exxon Asset Management Co. (1)
October 8, 2003 1.00 50,000 49,989
October 24, 2003 0.99 50,000 49,967
FCAR Owner Trust I
November 12, 2003 1.06 50,000 49,937
Gannett Co. (1)
October 10, 2003 1.02 85,000 84,976
October 17, 2003 1.01 40,000 39,981
Gaz de France
October 6, 2003 1.03 25,000 24,996
Gillette Co. (1)
October 17, 2003 0.99 40,000 39,981
GlaxoSmithKline Finance PLC
October 16, 2003 1.03 50,000 49,977
November 25, 2003 1.02 30,000 29,951
Golden Peanut Co. LLC
October 1, 2003 1.02 10,000 10,000
Harley-Davidson Funding Corp. (1)
October 15, 2003 1.02 15,000 14,994
November 24, 2003 1.02 10,000 9,984
Harvard University
November 14, 2003 1.01 40,000 39,948
HBOS Treasury Services PLC
October 1, 2003 1.05 30,000 29,999
October 10, 2003 1.05 8,800 8,797
October 23, 2003 1.05 25,000 24,983
November 5, 2003 1.05 51,200 51,146
Hershey Foods Corp. (1)
October 24, 2003 1.01 25,000 24,983
Household Finance Corp.
October 31, 2003 1.03 50,000 49,956
HSBC USA Inc.
October 15, 2003 1.04 25,000 24,989
IBM Credit Corp.
October 14, 2003 1.00 50,000 49,981
ING (U.S.) Funding LLC
October 17, 2003 1.04 25,000 24,987
October 21, 2003 1.04 25,000 24,984
Johnson & Johnson (1)
November 14, 2003 1.02 23,400 23,370
KFW International Finance Inc. (1)
October 8, 2003 1.01 30,000 29,993
October 15, 2003 1.02 25,000 24,989
November 4, 2003 1.03 45,000 44,955
Kimberly-Clark Worldwide Inc. (1)
October 6, 2003 1.00 25,000 24,996
October 24, 2003 1.00 25,000 24,983
Medtronic Inc. (1)
October 3, 2003 1.02 25,000 24,998
October 16, 2003 1.03 20,000 19,991
Merck & Co. Inc.
October 6, 2003 1.01 22,000 21,996
October 28, 2003 1.02 21,000 20,983
November 13, 2003 1.02 50,000 49,938
Motiva Enterprises LLC
October 6, 2003 1.00 25,000 24,996
Nestle Capital Corp. (1)
October 21, 2003 1.03 25,000 24,985
October 27, 2003 1.03 40,000 39,969
NetJets Inc. (1)
October 3, 2003 1.02 20,000 19,998
November 14, 2003 1.04 25,000 24,967
New Center Asset Trust
October 8, 2003 1.06 25,000 24,994
November 17, 2003 1.05 40,000 39,942
Novartis Finance Corp. (1)
October 8, 2003 1.01 25,000 24,994
Park Avenue Receivables Corp. (1)
October 6, 2003 1.06 30,000 29,995
October 7, 2003 1.06 50,000 49,990
October 27, 2003 1.04 50,000 49,961
Pfizer Inc. (1)
October 10, 2003 1.02 25,000 24,993
October 17, 2003 1.02 30,000 29,986
October 20, 2003 1.02 25,000 24,986
November 17, 2003 1.02 45,000 44,939
Preferred Receivables Funding Corp. (1)
October 1, 2003 1.06 30,000 29,999
October 7, 2003 1.05 25,000 24,995
October 22, 2003 1.06 30,000 29,981
October 30, 2003 1.06 50,000 49,956
Private Export Funding Corp. (1)
October 15, 2003 1.02 25,000 24,989
Procter & Gamble Co. (1)
October 10, 2003 1.02 45,000 44,987
October 31, 2003 1.01 30,000 29,973
November 21, 2003 1.02 50,000 49,926
Rabobank USA Financial Corp.
October 21, 2003 1.04 35,950 35,928
Receivables Capital Corp. (1)
October 3, 2003 1.06 75,000 74,993
October 17, 2003 1.05 35,000 34,983
November 6, 2003 1.05 25,000 24,973
Rio Tinto (Commercial Paper) Ltd. (1)
October 9, 2003 1.05 25,000 24,993
October 21, 2003 1.07 25,000 24,984
Royal Bank of Scotland PLC
October 28, 2003 1.04 50,000 49,960
SBC International Inc. (1)
October 21, 2003 1.03 75,000 74,955
Shell Finance (U.K.) PLC
October 14, 2003 1.04 30,100 30,088
November 4, 2003 1.03 44,900 44,855
November 6, 2003 (1) 1.04 25,000 24,973
Siemens Capital Co. LLC
November 3, 2003 1.01 25,000 24,976
Societe Generale N.A. Inc.
October 10, 2003 1.03 50,000 49,986
October 15, 2003 1.03 50,000 49,978
Spintab AB (Swedmortgage)
October 17, 2003 1.02 25,000 24,988
October 29, 2003 1.04 50,000 49,956
Stadshypotek Delaware Inc. (1)
October 15, 2003 1.07 15,000 14,993
November 10, 2003 1.05 50,000 49,940
November 21, 2003 1.06 35,000 34,947
November 25, 2003 1.07 25,000 24,958
Target Corp.
October 2, 2003 1.00 25,000 24,999
October 20, 2003 1.03 25,000 24,986
Toronto-Dominion Holdings USA Inc.
October 17, 2003 1.04 25,000 24,988
November 3, 2003 1.03 50,000 49,952
Total Capital (1)
October 7, 2003 1.05 50,000 49,990
Toyota Motor Credit Corp. (1)
November 6, 2003 1.05 100,000 99,890
Triple-A One Funding Corp. (1)
October 24, 2003 1.05 35,000 34,975
November 7, 2003 1.05 25,000 24,972
November 14, 2003 1.05 55,000 54,926
UBS Finance (Delaware) LLC
November 10, 2003 1.04 50,000 49,941
November 24, 2003 1.04 50,000 49,921
United Parcel Service Inc.
November 7, 2003 0.98 50,000 49,946
Verizon Network Funding Co.
October 20, 2003 1.02 45,000 44,975
Wal-Mart Stores Inc. (1)
October 29, 2003 1.01 40,000 39,967
November 18, 2003 1.00 35,000 34,951
Westpac Capital Corp.
November 7, 2003 1.03 50,000 49,946
Yale University
October 10, 2003 1.06 6,000 5,998
TOTAL COMMERCIAL PAPER 6,328,920
FEDERAL AGENCY DISCOUNT NOTES - 9.67%
Fannie Mae
October 22, 2003 1.02 50,000 49,969
Federal Farm Credit Banks
October 9, 2003 0.98 50,000 49,988
October 16, 2003 0.98 50,000 49,978
November 14, 2003 0.98 25,000 24,969
Federal Home Loan Bank
October 29, 2003 1.01 30,000 29,976
November 7, 2003 1.02 50,000 49,946
November 19, 2003 1.02 20,000 19,972
International Bank for Reconstruction and Development
October 10, 2003 0.97 75,000 74,980
October 21, 2003 0.97 75,000 74,958
October 28, 2003 0.98 84,200 84,131
Sallie Mae
October 8, 2003 0.99 50,000 49,989
October 14, 2003 0.99 50,000 49,981
October 27, 2003 1.00 35,000 34,974
Tenessee Valley Authority
October 2, 2003 0.99 40,000 39,998
October 16, 2003 0.99 110,000 109,952
October 23, 2003 0.96 50,000 49,969
TOTAL FEDERAL AGENCY DISCOUNT NOTES 843,730
U.S. TREASURIES - 15.28%
U.S. Treasury Bills
October 2, 2003 0.89 300,000 299,986
October 9, 2003 0.92 225,000 224,951
October 16, 2003 0.93 160,000 159,939
October 23, 2003 0.94 175,000 174,901
October 30, 2003 0.91 100,000 99,927
November 6, 2003 0.96 125,000 124,892
November 13, 2003 0.93 50,000 49,947
November 20, 2003 0.91 100,000 99,879
November 28, 2003 0.93 50,000 49,932
December 4, 2003 0.90 50,000 49,923
TOTAL U.S. TREASURIES 1,334,277
TOTAL INVESTMENT SECURITIES (cost: $8,731,943,000) 8,731,924
OTHER ASSETS LESS LIABILITIES (1,343)
NET ASSETS $8,730,581
(1) Restricted security that can be resold only to institutional investors.
In practice, this security is as liquid as unrestricted securities
in the portfolio.
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES (dollars and shares in thousands,
at September 30, 2003 except per-share amounts)
ASSETS:
Investment securities at market
(cost: $8,731,943) $8,731,924
Cash 42,520
Receivables for:
Sales of fund's shares $49,463
Interest 206
Reimbursement of expenses from investment adviser 1,799 51,468
Other Assets 4
8,825,916
LIABILITIES:
Payables for:
Repurchases of fund's shares 92,509
Dividends on fund's shares 179
Services provided by affiliates 2,574
Deferred Trustees' compensation 36
Other fees and expenses 37 95,335
NET ASSETS AT SEPTEMBER 30, 2003 $8,730,581
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $8,730,600
Net unrealized depreciation (19)
NET ASSETS AT SEPTEMBER 30, 2003 $8,730,581
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING -
UNLIMITED SHARES AUTHORIZED
Net assets Shares outstanding Net asset value per share
Class A $7,909,667 7,909,684 $1.00
Class B 172,925 172,925 1.00
Class C 88,720 88,720 1.00
Class F 7,342 7,342 1.00
Class 529-A 89,297 89,297 1.00
Class 529-B 1,082 1,082 1.00
Class 529-C 3,456 3,457 1.00
Class 529-E 4,614 4,614 1.00
Class 529-F 2,318 2,318 1.00
Class R-1 7,679 7,680 1.00
Class R-2 205,628 205,628 1.00
Class R-3 138,193 138,193 1.00
Class R-4 26,156 26,156 1.00
Class R-5 73,504 73,504 1.00
STATEMENT OF OPERATIONS
for the year ended September 30, 2003 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $118,465
Fees and expenses:
Investment advisory services $25,711
Distribution services 11,553
Transfer agent services 12,189
Administrative services 1,723
Reports to shareholders 310
Registration statement and prospectus 1,041
Postage, stationery and supplies 2,288
Trustees' compensation 65
Auditing and legal 65
Custodian 284
State and local taxes 79
Other 41
Total expenses before reimbursement 55,349
Reimbursement of expenses 28,732 26,617
Net investment income 91,848
NET UNREALIZED DEPRECIATION ON INVESTMENTS (4)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $91,844
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2003 2002
OPERATIONS:
Net investment income $91,848 $95,932
Net unrealized (depreciation) appreciation
on investments (4) 14
Net increase in net assets
resulting from operations 91,844 95,946
DIVIDENDS PAID TO SHAREHOLDERS
FROM NET INVESTMENT INCOME (91,828) (95,952)
CAPITAL SHARE TRANSACTIONS 32,809 1,559,502
TOTAL INCREASE IN NET ASSETS 32,825 1,559,496
NET ASSETS:
Beginning of year 8,697,756 7,138,260
End of year $8,730,581 $8,697,756
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Cash Management Trust of America (the "fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income on cash reserves, while
preserving capital and maintaining liquidity, through investments in
high-quality, short-term money market instruments.
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) are sponsored by the Commonwealth of Virginia and 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 Conversion feature
charge upon redemption
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes A and 529-A None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes B and 529-B None Declines from 5% to zero Classes B and 529-B
for redemptions within convert to classes A and
six years of purchase 529-A, respectively, after
eight years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class C None 1% for redemptions within Class C converts to Class F
one year of purchase after 10 years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class 529-C None 1% for redemptions within None
one year of purchase
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class 529-E None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes F and 529-F None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes R-1, R-2, R-3, None None None
R-4 and R-5
- ---------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. 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:
NET ASSET VALUE - The fund values its shares in accordance with
Securities and Exchange Commission ("SEC") rules, using the
penny-rounding method which permits the fund to maintain a constant net
asset value of $1.00 per share.
SECURITY VALUATION - Fixed-income securities 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 at prices for securities of comparable maturity, quality and type.
Short-term securities maturing within 60 days are valued at amortized
cost, which approximates market value. 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. Securities and other assets for which representative market
quotations are not readily available are fair valued as determined in
good faith by authority of the fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. 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) 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 TO SHAREHOLDERS - Dividends to shareholders are declared
daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
2. 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 each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 2003, there were no
material differences between book and tax reporting. The fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund. As of September 30, 2003, the cost of investment
securities for federal income tax purposes was $8,731,943,000.
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
(dollars in thousands)
Undistributed net investment income $212
Gross unrealized appreciation on investment securities 43
Gross unrealized depreciation on investment securities (62)
Distributions paid to shareholders from ordinary income were as follows (dollars
in thousands):
Year ended Year ended
Share class(1) September 30, 2003 September 30, 2002
Class A $ 90,058 $ 95,143
Class B 252 312
Class C 127 102
Class F 67 50
Class 529-A 425 108
Class 529-B 1 -*
Class 529-C 3 -*
Class 529-E 7 2
Class 529-F 4 -*
Class R-1 5 -*
Class R-2 139 9
Class R-3 167 9
Class R-4 96 1
Class R-5 477 216
Total $ 91,828 $ 95,952
* Amount less than one thousand.
(1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning
February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5 shares were offered
beginning May 15, 2002.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES -The Investment Advisory and Service Agreement with
CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.320% on the first $1 billion
of daily net assets and decreasing to 0.270% on such assets in excess of $2
billion. For the year ended September 30, 2003, the investment advisory services
fee was $25,711,000, which was equivalent to an annualized rate of 0.280% of
average daily net assets.
The Investment Advisory and Service Agreement also provides that CRMC will
reimburse the fund's Class A shares to the extent that annual operating expenses
exceed 25% of gross income. Expenses related to interest, taxes, brokerage
commissions and extraordinary items are not subject to these limitations. Low
income levels, caused by the decline in short-term interest rates, have resulted
in expenses exceeding this limit. During the year ended September 30, 2003,
these reimbursements totaled $26,971,000. It is likely that expenses will
continue to be reimbursed while short-term interest rates remain low. The amount
of reimbursement during any period will vary in accordance with the fund's gross
income and expense levels.
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. The plans
provide for annual expenses, based on a percentage of average daily net
assets, ranging from 0.15% to 1.00% as noted below. In some cases, the
Board of Trustees has approved expense amounts lower than plan limits.
------------------------------------------------ ----------------------------- -----------------------------
Share class Currently approved limits Plan limits
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class A 0.15% 0.15%
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class 529-A 0.15 0.50
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Classes B and 529-B 0.90 0.90
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Classes C, 529-C and R-1 1.00 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-2 0.75 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Classes 529-E and R-3 0.50 0.75
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Classes F, 529-F and R-4 0.25 0.50
------------------------------------------------ ----------------------------- -----------------------------
All share classes may use a portion (0.15% for classes A, B, 529-A and
529-B shares and 0.25% for all other share classes) 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 for providing
certain shareholder services. Expenses in excess of these amounts, up
to approved limits, may be used to compensate dealers and wholesalers
for shares sold.
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for classes A and B. Under this agreement, these share classes
compensate AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to all other
share classes from the administrative services fees paid to CRMC
described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services
agreement with CRMC to provide transfer agent and other related
shareholder services for all classes of shares other than classes A and
B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class
R-5) based on its respective average daily net assets. Each relevant
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. During the start-up period for classes
R-1, R-2, R-3 and R-4, CRMC has voluntarily agreed to pay a portion of
these fees. For the year ended September 30, 2003, the total fees paid
by CRMC were $309,000. 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 in the accompanying
financial statements, the Commonwealth of Virginia is not considered a
related party. Administrative services fees are presented gross of any
payments made by CRMC.
Expenses under the agreements described above for the year ended
September 30, 2003, were as follows (dollars in thousands):
- ---------------------------------------------------------------------------------------------------------------
Administrative services
Distribution Transfer agent
Share class services services
-------------------------------------------------------------
Commonwealth of
CRMC Transfer agent Virginia
administrative services administrative
services services
- ---------------------------------------------------------------------------------------------------------------
Class A $7,144 $11,899 Not applicable Not applicable Not applicable
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class B 1,702 290 Not applicable Not applicable Not applicable
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class C 1,034 Included $155 $80 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class F 29 Included 18 3 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class 529-A 12 Included 105 23 $ 70
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class 529-B 9 Included 1 -* 1
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class 529-C 26 Included 4 1 3
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class 529-E 19 Included 6 1 4
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class 529-F 3 Included 2 -* 1
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class R-1 49 Included 7 8 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class R-2 986 Included 197 638 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class R-3 491 Included 147 148 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class R-4 49 Included 30 5 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Class R-5 Not applicable Included 57 8 Not applicable
in
administrative
services
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Total $11,553 $12,189 $729 $915 $79
- ----------------===============================================================================================
*Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion
of the class-specific fees and expenses. For the year ended September 30, 2003,
the total fees paid by CRMC for classes B, C, 529-B, 529-C, 529-E, R-1, R-2 and
R-3 were $1,452,000.
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. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease 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.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Year ended September 30, 2003
Share class(1) Sales(2) Reinvestments of dividends
Amount Shares Amount Shares
Class A $ 15,232,335 15,232,335 $ 86,266 86,266
Class B 233,546 233,546 232 232
Class C 470,206 470,206 112 112
Class F 130,042 130,042 36 36
Class 529-A 115,515 115,515 416 416
Class 529-B 1,235 1,235 1 1
Class 529-C 4,360 4,360 3 3
Class 529-E 5,577 5,577 6 6
Class 529-F 3,376 3,376 4 4
Class R-1 17,203 17,203 5 5
Class R-2 852,833 852,833 124 124
Class R-3 567,375 567,375 155 155
Class R-4 62,875 62,875 92 92
Class R-5 116,674 116,674 447 447
Total net increase
(decrease) $ 17,813,152 17,813,152 $ 87,899 87,899
Year ended September 30, 2002
Class A $ 17,401,893 17,401,893 $ 89,814 89,814
Class B 201,666 201,666 280 280
Class C 353,232 353,232 83 83
Class F 52,594 52,594 26 26
Class 529-A 47,559 47,559 105 105
Class 529-B 374 374 -* -*
Class 529-C 1,034 1,034 1 1
Class 529-E 1,560 1,560 2 2
Class 529-F 1 1 -* -*
Class R-1 1,864 1,864 -* -*
Class R-2 57,697 57,697 7 7
Class R-3 23,460 23,460 7 7
Class R-4 674 674 1 1
Class R-5 60,080 60,080 209 209
Total net increase
(decrease) $ 18,203,688 18,203,688 $ 90,535 90,535
Year ended September 30, 2003
Share class(1) Repurchases(2) Net (decrease) increase
Amount Shares Amount Shares
Class A $ (15,714,246) (15,714,246) $ (395,645) (395,645)
Class B (218,968) (218,968) 14,810 14,810
Class C (481,173) (481,173) (10,855) (10,855)
Class F (133,112) (133,112) (3,034) (3,034)
Class 529-A (60,929) (60,929) 55,002 55,002
Class 529-B (517) (517) 719 719
Class 529-C (1,894) (1,894) 2,469 2,469
Class 529-E (2,336) (2,336) 3,247 3,247
Class 529-F (1,063) (1,063) 2,317 2,317
Class R-1 (10,483) (10,483) 6,725 6,725
Class R-2 (669,787) (669,787) 183,170 183,170
Class R-3 (444,141) (444,141) 123,389 123,389
Class R-4 (37,312) (37,312) 25,655 25,655
Class R-5 (92,281) (92,281) 24,840 24,840
Total net increase
(decrease) $ (17,868,242) (17,868,242) $ 32,809 32,809
Year ended September 30, 2002
Class A $ (16,261,629) (16,261,629) $ 1,230,078 1,230,078
Class B (90,127) (90,127) 111,819 111,819
Class C (267,076) (267,076) 86,239 86,239
Class F (45,650) (45,650) 6,970 6,970
Class 529-A (13,369) (13,369) 34,295 34,295
Class 529-B (11) (11) 363 363
Class 529-C (47) (47) 988 988
Class 529-E (195) (195) 1,367 1,367
Class 529-F - - 1 1
Class R-1 (909) (909) 955 955
Class R-2 (35,246) (35,246) 22,458 22,458
Class R-3 (8,663) (8,663) 14,804 14,804
Class R-4 (174) (174) 501 501
Class R-5 (11,625) (11,625) 48,664 48,664
Total net increase
(decrease) $ (16,734,721) (16,734,721) $ 1,559,502 1,559,502
* Amount less than one thousand.
(1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning
February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5 shares were offered
beginning May 15, 2002.
(2) Includes exchanges between share classes of the fund.
5. RESTRICTED SECURITIES
The fund has invested in certain securities for which resale may be limited to
qualified buyers or which are otherwise restricted. These securities are
identified in the investment portfolio. As of September 30, 2003, the total
value of restricted securities was $2,851,649,000, which represented 32.66% of
the net assets of the fund.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
year ended September 30, 2003, the custodian fee of $284,000 included $43,000
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends Net assets, Ratio of Ratio of
value, Net from net Net asset end of expenses net income
beginning investment investment value, end Total period (in to average to average
of period income(2) income of period return(4) millions) net assets net assets
Class A:
Year ended 9/30/2003 $1.00 $.011 $(.011) $1.00 1.05% $7,910 .23% (6) 1.05%
Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.35 8,305 .59 1.33
Year ended 9/30/2001 1.00 .045 (.045) 1.00 4.63 7,075 .59 4.48
Year ended 9/30/2000 1.00 .055 (.055) 1.00 5.66 5,417 .61 5.53
Year ended 9/30/1999 1.00 .045 (.045) 1.00 4.59 5,863 .58 4.52
Class B:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .13 173 1.14 (7) .14
Year ended 9/30/2002 1.00 .005 (.005) 1.00 .53 158 1.40 (7) .47
Year ended 9/30/2001 1.00 .037 (.037) 1.00 3.75 46 1.41 3.01
Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00 2.73 1 1.43 (8) 5.21 (8)
Class C:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 89 1.16 (7) .12
Year ended 9/30/2002 1.00 .004 (.004) 1.00 .40 100 1.51 (7) .31
Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00 1.40 13 1.55 (8) 2.05 (8)
Class F:
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 7 .73 .58
Year ended 9/30/2002 1.00 .011 (.011) 1.00 1.13 10 .77 1.11
Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00 1.71 4 .80 (8) 3.09 (8)
Class 529-A:
Year ended 9/30/2003 1.00 .007 (.007) 1.00 .66 89 .62 .61
Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00 .73 34 .60 (8) 1.16 (8)
Class 529-B:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 1 1.13 (7) .12
Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .09 - (5) .47 (7) .08
Class 529-C:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 3 1.11 (7) .11
Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .15 1 .75 (7) .12
Class 529-E:
Year ended 9/30/2003 1.00 .002 (.002) 1.00 .22 5 1.05 (7) .17
Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00 .39 1 1.09 (8) .66 (8)
Class 529-F:
Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43 2 .85 .33
Period from 9/16/2002 to 9/30/2002 1.00 - (3) - (3) 1.00 .04 - (5) .03 .04
Class R-1:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 8 1.08 (7) .10
Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .10 1 .51 (7) .09
Class R-2:
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 206 1.08 (7) .11
Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11 23 .52 (7) .11
Class R-3:
Year ended 9/30/2003 1.00 .002 (.002) 1.00 .23 138 1.03 (7) .17
Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .22 15 .34 (7) .22
Class R-4:
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 26 .72 (7) .48
Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .23 1 .19 (7) .27
Class R-5:
Year ended 9/30/2003 1.00 .009 (.009) 1.00 .87 74 .41 .84
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .50 49 .16 .50
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) Amount less than $.001.
(4) Total returns exclude all contingent deferred sales charges.
(5) Amount less than 1 million.
(6) Had CRMC not reimbursed expenses as described in the Notes to the Financial
Statements, the expense ratio would have been .55%.
(7) During the start-up period for this class, CRMC voluntarily agreed to pay a
portion of the fees relating to transfer agent services. Had CRMC not paid
such fees, expense ratio percentage points would have been higher by .11 for
Class R-1, .22 for Class R-2 and .02 for Class R-3 during the year ended
September 30, 2003 and higher by .20 for Class R-1, .05 for Class R-2, .03
for Class R-3 and .11 for Class R-4 during the period ended September 30,
2002. The expense ratio for Class R-4 was not affected by any payments made
by CRMC during the period ended September 30, 2003. In addition, due to
lower short-term interest rates, CRMC voluntarily agreed to pay a portion of
the class-specific fees and expenses. Had CRMC not paid such fees and
expenses, expense ratio percentage points would have been higher by .24 for
Class B, .39 for Class C, .39 for Class 529-B, .51 for Class 529-C, .06 for
Class 529-E, .42 for Class R-1, .38 for Class R-2 and .05 for Class R-3
during the year ended September 30, 2003, and .higher by .04 for classes C
and 529-C for the period ended September 30, 2002. The expense ratios for
classes B, 529-B and R-1 were not affected by any payments made by CRMC
during the period ended September 30, 2002.
(8) Annualized.
REPORT OF INDEPENDENT AUDITORS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE CASH MANAGEMENT TRUST
OF AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The Cash Management Trust of America (the
"Fund") at September 30, 2003, and the results of its operations, the changes in
its net assets and its financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at September 30, 2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2003
TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. government
obligations. For purposes of computing this exclusion, 14.4% of the dividends
paid by the fund from net investment income were derived from interest on direct
U.S. government obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
OTHER SHARE CLASS RESULTS (unaudited)
CLASS B, CLASS C, CLASS F AND CLASS 529
Returns for periods ended September 30, 2003:
1 year Life of class
CLASS B SHARES
Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%,
payable only if shares are
sold within six years of purchase -4.87% +1.19%(1)
Not reflecting CDSC +0.13% +2.00%(1)
CLASS C SHARES
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase -0.88% +0.75%(2)
Not reflecting CDSC +0.12% +0.75%(2)
CLASS F SHARES(3)
Not reflecting annual asset-based fee charged by sponsoring firm +0.55% +1.35%(4)
CLASS 529-A SHARES +0.66% +0.86%(5)
CLASS 529-B SHARES
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase -4.88% -2.89%(6)
Not reflecting CDSC +0.12% +0.16%(6)
CLASS 529-C SHARES
Reflecting CDSC, maximum of 1%, payable only if shares
are sold within one year of purchase -0.88% +0.18%(7)
Not reflecting CDSC +0.12% +0.18%(7)
CLASS 529-E SHARES(3) +0.22% +0.39%(8)
CLASS 529-F SHARES(3)
Not reflecting annual asset-based fee charged by sponsoring firm +0.43% +0.46%(9)
(1) Average annual total return from March 15, 2000, when Class B shares were
first sold.
(2) Average annual total return from March 16, 2001, when Class C shares were
first sold.
(3) These shares are sold without any initial or contingent deferred sales
charge.
(4) Average annual total return from March 26, 2001, when Class F shares were
first sold.
(5) Average annual total return from February 15, 2002, when Class 529-A shares
were first sold.
(6) Average annual total return from June 7, 2002, when Class 529-B shares were
first sold.
(7) Average annual total return from April 2, 2002, when Class 529-C shares
were first sold.
(8) Average annual total return from March 11, 2002, when Class 529-E shares
were first sold.
(9) Average annual total return from September 16, 2002, when Class 529-F shares
were first sold.
THE U.S. TREASURY MONEY FUND OF AMERICA
INVESTMENT PORTFOLIO
September 30, 2003
Principal Market
Yield at amount value
U.S. TREASURIES - 100.32% acquisition (000) (000)
U.S. Treasury Bills 10-2-03 0.81%-0.97% $86,715 $86,711
U.S. Treasury Bills 10-9-03 0.88%-0.93% 94,985 94,964
U.S. Treasury Bills 10-16-03 0.89%-0.90% 68,790 68,764
U.S. Treasury Bills 10-23-03 0.87%-0.92% 85,951 85,904
U.S. Treasury Bills 10-30-03 0.91%-0.97% 43,085 43,053
U.S. Treasury Bills 11-6-03 0.89%-0.95% 96,580 96,495
U.S. Treasury Bills 11-13-03 0.93%-0.97% 70,861 70,788
U.S. Treasury Bills 11-20-03 0.99%-1.00% 40,220 40,171
U.S. Treasury Bills 12-4-03 0.89%-0.94% 78,055 77,935
U.S. Treasury Bills 12-11-03 0.89% 856 854
TOTAL INVESTMENT SECURITIES (cost: $665,610,000) 665,639
Other assets less liabilities (2,125)
NET ASSETS $663,514
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2003 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market
(cost: $665,610) $665,639
Cash 621
Receivables for sales of fund's shares 4,078
670,338
LIABILITIES:
Payables for:
Repurchases of fund's shares $6,454
Dividends on fund's shares 8
Investment advisory services 158
Services provided by affiliates 172
Deferred Trustees' compensation 11
Other fees and expenses 21 6,824
NET ASSETS AT SEPTEMBER 30, 2003 $663,514
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $663,486
Distributions in excess of net investment income (1)
Net unrealized appreciation 29
NET ASSETS AT SEPTEMBER 30, 2003 $663,514
Shares of beneficial interest issued and outstanding
- unlimited shares authorized
Net assets Shares outstanding Net asset value per share
Class A $631,332 631,305 $1.00
Class R-1 330 331 1.00
Class R-2 14,577 14,577 1.00
Class R-3 11,123 11,122 1.00
Class R-4 1,493 1,493 1.00
Class R-5 4,659 4,658 1.00
STATEMENT OF OPERATIONS
for the year ended September 30, 2003 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $8,836
Fees and expenses:
Investment advisory services $2,184
Distribution services 766
Transfer agent services 866
Administrative services 89
Reports to shareholders 38
Registration statement and prospectus 169
Postage, stationery and supplies 133
Trustees' compensation 25
Auditing and legal 38
Custodian 28
State and local taxes 7
Other 37
Total expenses before reimbursement 4,380
Reimbursement of expenses 81 4,299
Net investment income 4,537
NET UNREALIZED APPRECIATION ON INVESTMENTS 13
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,550
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2003 2002
Operations:
Net investment income $4,537 $6,632
Net unrealized appreciation (depreciation)
on investments 13 (104)
Net increase in net assets
resulting from operations 4,550 6,528
Dividends paid to shareholders from
net investment income (4,538) (6,649)
Capital share transactions (24,951) 199,523
Total (decrease) increase in net assets (24,939) 199,402
Net assets:
Beginning of year 688,453 489,051
End of year $663,514 $688,453
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The U.S. Treasury Money Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
The fund offers six share classes consisting of one retail share class (Class A)
and five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5). All share
classes are sold without any sales charges and do not carry any conversion
rights.
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. 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:
NET ASSET VALUE - The fund values its shares in accordance with
Securities and Exchange Commission ("SEC") rules, using the
penny-rounding method which permits the fund to maintain a constant net
asset value of $1.00 per share.
SECURITY VALUATION - Fixed-income securities are valued at prices
obtained from an independent pricing service. However, where the
investment adviser deems it appropriate, such securities will be valued
at the mean quoted bid and asked prices or at prices for securities of
comparable maturity, quality and type. Short-term securities maturing
within 60 days are valued at amortized cost, which approximates market
value. Securities and other assets for which representative market
quotations are not readily available are fair valued as determined in
good faith by authority of the fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. 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) 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 TO SHAREHOLDERS - Dividends to shareholders are declared
daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
2. 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 each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 2003, there were no
material differences between book and tax reporting. The fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund. As of September 30, 2003, the cost of investment
securities for federal income tax purposes was $665,610,000.
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
(dollars in thousands)
Undistributed net investment income $18
Gross unrealized appreciation on investment securities 29
Distributions paid to shareholders from ordinary income were as follows (dollars
in thousands):
SHARE CLASS(1) YEAR ENDED SEPTEMBER 30, 2003 YEAR ENDED SEPTEMBER 30, 2002
Class A $ 4,486 $ 6,642
Class R-1 -* -*
Class R-2 10 -*
Class R-3 8 -*
Class R-4 4 -*
Class R-5 30 7
Total $ 4,538 $ 6,649
* Amount less than one thousand.
(1) Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on an
annual rate of 0.300% on the first $800 million of daily net assets and 0.285%
on such assets in excess of $800 million. For the year ended September 30, 2003,
the investment advisory services fee was $2,184,000.
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. The plans
provide for annual expenses, based on a percentage of average daily net
assets, ranging from 0.15% to 1.00% as noted below. In some cases, the
Board of Trustees has approved expense amounts lower than plan limits.
------------------------------------------------ ----------------------------- -----------------------------
Share class Currently approved limits Plan limits
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class A 0.15% 0.15%
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-1 1.00 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-2 0.75 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-3 0.50 0.75
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-4 0.25 0.50
------------------------------------------------ ----------------------------- -----------------------------
All share classes may use a portion (0.15% for Class A and 0.25% for
all other share classes) 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 for providing certain shareholder
services. Expenses in excess of these amounts, up to approved limits,
may be used to compensate dealers and wholesalers for shares sold.
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for Class A shares. Under this agreement, this share class
compensates 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 classes of shares other than Class A. Each
relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5)
based on its respective average daily net assets. Each relevant 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. During the start-up period for classes R-1,
R-2, R-3 and R-4, CRMC has voluntarily agreed to pay a portion of these
fees. For the year ended September 30, 2003, the total fees paid by
CRMC were $25,000. Administrative services fees are presented gross of
any payments made by CRMC.
Expenses under the agreements described above for the year ended
September 30, 2003, were as follows (dollars in thousands):
------------------------------------------------------------------------------------------
Share class Distribution Transfer agent Administrative services
services services
----------------------------------------
CRMC Transfer agent
administrative services
services
------------------------------------------------------------------------------------------
Class A $659 $866 Not applicable Not applicable
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Class R-1 2 Included in $-* $1
administrative
services
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Class R-2 70 Included in 14 46
administrative
services
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Class R-3 32 Included in 10 11
administrative
services
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Class R-4 3 Included in 2 -*
administrative
services
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Class R-5 Not applicable Included in 4 1
administrative
services
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Total $766 $866 $30 $59
----------------==========================================================================
*Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay
a portion of the class-specific fees and expenses. For the year ended
September 30, 2003, the total fees paid by CRMC for classes R-1, R-2
and R-3 were $56,000.
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. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease 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.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Share class(1) Sales(2) Reinvestments of dividends
Amount Shares Amount Shares
Year ended September 30, 2003
Class A $ 778,494 778,494 $ 4,259 4,259
Class R-1 382 382 -* -*
Class R-2 49,988 49,988 9 9
Class R-3 35,967 35,967 6 6
Class R-4 6,541 6,541 4 4
Class R-5 6,797 6,797 15 15
Total net increase
(decrease) $ 878,169 878,169 $ 4,293 4,293
Year ended September 30, 2002
Class A $ 938,667 938,667 $ 6,282 6,282
Class R-1 219 219 -* -*
Class R-2 8,400 8,400 -* -*
Class R-3 553 553 -* -*
Class R-4 49 49 -* -*
Class R-5 3,861 3,861 4 4
Total net increase
(decrease) $ 951,749 951,749 $ 6,286 6,286
Share class(1) Repurchases(2) Net (decrease) increase
Amount Shares Amount Shares
Year ended September 30, 2003
Class A $ (834,303) (834,303) $ (51,550) (51,550)
Class R-1 (270) (270) 112 112
Class R-2 (36,844) (36,844) 13,153 13,153
Class R-3 (24,898) (24,898) 11,075 11,075
Class R-4 (5,101) (5,101) 1,444 1,444
Class R-5 (5,997) (5,997) 815 815
Total net increase
(decrease) $ (907,413) (907,413) $ (24,951) (24,951)
Year ended September 30, 2002
Class A $ (751,008) (751,008) $ 193,941 193,941
Class R-1 - - 219 219
Class R-2 (6,976) (6,976) 1,424 1,424
Class R-3 (506) (506) 47 47
Class R-4 - - 49 49
Class R-5 (22) (22) 3,843 3,843
Total net increase
(decrease) $ (758,512) (758,512) $ 199,523 199,523
* Amount less than one thousand.
(1) Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002.
(2) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
year ended September 30, 2003, the custodian fee of $28,000 included $3,000 that
was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net Net asset
beginning investment investment value, end
of period income(2) income of period
Class A:
Year ended 9/30/2003 $1.00 $.006 $(.006) $1.00
Year ended 9/30/2002 1.00 .013 (.013) 1.00
Year ended 9/30/2001 1.00 .042 (.042) 1.00
Year ended 9/30/2000 1.00 .049 (.049) 1.00
Year ended 9/30/1999 1.00 .039 (.039) 1.00
Class R-1:
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-2:
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-3:
Year ended 9/30/2003 1.00 .002 (.002) 1.00
Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-4:
Year ended 9/30/2003 1.00 .004 (.004) 1.00
Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Class R-5:
Year ended 9/30/2003 1.00 .008 (.008) 1.00
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00
Ratio of Ratio of
Net assets, expenses net income
Total end of period to average to average
return (in millions) net assets net assets
Class A:
Year ended 9/30/2003 .63% $631 .58% .63%
Year ended 9/30/2002 1.29 683 .63 1.27
Year ended 9/30/2001 4.27 489 .66 4.12
Year ended 9/30/2000 5.01 369 .62 4.81
Year ended 9/30/1999 4.00 467 .59 3.95
Class R-1:
Year ended 9/30/2003 .12 - (3) 1.08 (4) .12
Period from 7/12/2002 to 9/30/2002 .11 - (3) .32 (4) .05
Class R-2:
Year ended 9/30/2003 .12 15 1.02 (4) .10
Period from 6/11/2002 to 9/30/2002 .08 1 .44 (4) .08
Class R-3:
Year ended 9/30/2003 .18 11 .99 (4) .11
Period from 8/16/2002 to 9/30/2002 .07 - (3) .13 (4) .07
Class R-4:
Year ended 9/30/2003 .43 2 .77 (4) .36
Period from 8/2/2002 to 9/30/2002 .17 - (3) .12 (4) .15
Class R-5:
Year ended 9/30/2003 .75 5 .46 .73
Period from 5/15/2002 to 9/30/2002 .47 4 .18 .46
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) Amount less than 1 million.
(4) During the start-up period for this class, CRMC voluntarily agreed to pay a
portion of the fees relating to transfer agent services. Had CRMC not paid
such fees, expense ratio percentage points would have been higher by .36 for
Class R-1, .23 for Class R-2, .05 for Class R-3 and .02 for Class R-4
during the year ended September 30, 2003, and higher by .20 for Class R-1,
.04 for Class R-2, .07 for Class R-3 and .21 for Class R-4 during the period
ended September 30, 2002. In addition, due to lower short-term interest
rates, CRMC voluntarily agreed to pay a portion of the class-specific fees
and expenses. Had CRMC not paid such fees and expenses, expense ratio
percentage points would have been higher by .47 for Class R-1, .49 for
Class R-2 and .13 for Class R-3 during the year ended September 30, 2003,
and higher by .02 for classes R-1 and R-2 during the period ended
September 30, 2002.
REPORT OF INDEPENDENT AUDITORS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE U.S. TREASURY MONEY
FUND OF AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The U.S. Treasury Money Fund of America (the
"Fund") at September 30, 2003, and the results of its operations, the changes in
its net assets and its financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at September 30, 2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2003
TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, all of the dividends paid
by the fund from net investment income were derived from interest on direct U.S.
Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
THE TAX-EXEMPT MONEY FUND OF AMERICA
INVESTMENT PORTFOLIO
September 30, 2003
Principal Market
Yield at amount value
acquisition (000) (000)
ARIZONA - 3.30%
Salt River Project Agricultural Improvement & Power Dist., TECP, Series B:
0.85% 10/10/03 0.85% $5,000 $5,000
0.90% 11/4/03 0.90 2,000 2,000
0.85% 11/13/03 0.85 5,000 5,000
CALIFORNIA - 0.84%
San Diego Community College Dist., San Diego County, California, Tax-Exempt 0.99 3,000 3,034
G.O. Bonds, Election 2002, Series 2003-A, FSA insured, 3.00% 5/1/04
DELAWARE - 0.55%
Econ. Dev. Auth., Industrial Dev. Rev. Bonds (Clean Power Project), Series 1.18 2,000 2,000
1997-D, AMT, 1.18% 8/1/29 (1)
DISTRICT OF COLUMBIA - 4.62%
Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000, TECP:
0.85% 10/3/03 0.85 3,800 3,800
0.85% 10/15/03 0.85 5,000 5,000
Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP:
Series 1999-B:
0.90% 10/29/03 0.90 3,500 3,500
0.95% 11/20/03 0.95 2,000 2,000
Series 1999-C, 0.95% 11/25/03 0.95 2,500 2,500
FLORIDA - 12.58%
State Board of Education, Public Education Capital Outlay Bonds, Series 1994-A, 0.98 1,665 1,736
5.875% 6/1/16 (preref. 6/1/04)
Municpal Power Agcy., Initial Pooled Loan Project, Series 1995-A, TECP:
0.85% 10/8/03 0.85 3,400 3,400
0.85% 11/5/03 0.85 2,000 2,000
0.85% 11/17/03 0.85 3,000 2,999
School Dist. of Broward County, G.O. Ref. Bonds, Series 2002-A, 2.50% 2/15/04 0.95 2,075 2,087
City of Jacksonville:
Electric Auth., Series 1993-C1, TECP, 0.88% 10/7/03 0.88 5,800 5,800
Health Facs. Auth., Health Care Facs. Rev. Ref. Bonds (Mayo Foundation/St Luke's
Hospital Asssocation), Series 2001-B. TECP:
0.95% 11/3/03 0.95 2,400 2,400
0.85% 11/10/03 0.85 3,500 3,500
Health Facs. Auth., Hospital Rev. and Ref. Bonds (Genesis Rehabilitation 1.22 1,100 1,100
Hospital Project), Series 1996, 1.22% 5/1/21 (1)
Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled
Independent Higher Education Institutions Loan Program), Series 1985, TECP:
0.83% 10/14/03 0.83 5,600 5,600
0.84% 11/4/03 0.84 1,000 1,000
Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg.
Program), AMBAC/FGIC insured, TECP:
Series C:
0.80% 10/7/03 0.80 1,500 1,500
0.80% 10/8/03 0.80 2,591 2,591
0.85% 10/9/03 0.85 2,000 2,000
Series 2000-A, 0.88% 10/9/03 0.88 1,000 1,000
Series 2000-C:
0.85% 10/1/03 0.85 3,000 3,000
0.85% 10/7/03 0.85 4,000 4,000
GEORGIA - 0.55%
DeKalb County, Water and Sewerage Rev. Ref. Bonds, Series 1997, 6.00% 10/1/03 1.05 2,000 2,000
ILLINOIS - 0.69%
Dev. Fin. Auth., Residential Rental Rev. Bonds (F.C. Harris Pavilion Project), 1.05 2,500 2,500
Series 1994, AMT, 1.05% 4/1/24 (1)
INDIANA - 2.39%
Health Fac. Fncg. Auth., Variable Rate Demand Rev. Bonds (Community Mental 1.10 2,700 2,700
Health and Rehabilitation Facs. Designated Pool Program), Series 1990,
1.10% 11/1/20 (1)
Transportration Fin. Auth., Highway Bond Anticipation Notes, Series 2003-A,
1.50% 10/3/03 1.50 2,000 2,000
County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing
Project), AMT: (1)
Series 2000-A, 1.09% 1/1/30 1.09 2,000 2,000
Series 2001-B, 1.09% 9/1/31 1.09 2,000 2,000
MARYLAND - 13.30%
Health and Higher Educational Facs. Auth.:
Johns Hopkins University Issue, Commercial Paper Rev. Notes:
Series 2001-A:
0.85% 10/15/03 0.85 2,500 2,500
0.85% 11/13/03 0.85 5,629 5,629
Series 2001-B:
0.85% 10/16/03 0.85 5,000 5,000
0.85% 10/27/03 0.85 1,500 1,500
Pooled Loan Program Rev. Bonds, Series 1994-D, 0.95% 1/1/29 (1) 0.95 195 195
Baltimore County:
Consolidated Public Improvement Bond Anticipation Notes, Series 1995, TECP:
0.85% 10/6/03 0.85 3,000 3,000
0.88% 10/7/03 0.88 3,000 3,000
0.88% 10/10/03 0.88 2,000 2,000
0.90% 11/3/03 0.90 1,000 1,000
Rev. Bonds (Oak Crest Village, Inc. Project), Series 1999-A, 1.05% 1/1/29 (1) 1.05 1,325 1,325
Frederick County, Consolidated Public Improvement Variable Rate Demand Bond 1.05 1,255 1,255
Anticipation Notes, Series 1997, 1.05% 10/1/07 (1)
Howard County, Consolidated Public Improvement Bond Anticipation Notes,
Series 2002-C, TECP:
0.88% 10/1/03 0.88 1,000 1,000
0.90% 11/3/03 0.90 4,000 4,000
0.90% 11/6/03 0.90 1,500 1,500
0.90% 11/7/03 0.90 4,700 4,700
Montgomery County, Consolidated Public Improvement Bond Anticipation Notes,
Series 2002, TECP:
0.85% 10/17/03 0.85 7,000 7,000
0.85% 11/10/03 0.85 3,700 3,700
MASSACHUSETTS - 1.75%
Commonwealth of Massachusetts, G.O. Ref. Bonds, Series 1998-A, 1.05% 9/1/16 (1) 1.05 2,900 2,900
Bay Transportation Auth., General Transportation System Bonds, Ref. Bonds, Series 1.00 3,320 3,454
MICHIGAN - 0.69%
City of Detroit, Sewage Disposal System Rev. Ref. Bonds, Series 1998-A, MBIA insured, 1.05 2,495 2,495
1.05% 7/1/23 (1)
MINNESOTA - 1.93%
City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical
Center ), TECP:
Series 2001-B, 0.80% 10/1/03 0.80 5,000 5,000
Series 2001-C, 0.85% 11/4/03 0.85 2,000 2,000
MISSOURI - 1.05%
Health and Educational Facs. Auth., Health Facs. Adjustable Demand Rev. Bonds 1.08 2,000 2,000
(Barnes Hospital Project), Series 1985-B, 1.08% 12/1/15 (1)
The Curators of the University of Missouri Systems Facs. Demand Rev. Bonds, 1.22 1,800 1,800
Series 2001-A, 1.22% 11/1/31 (1)
NEW JERSEY - 0.78%
Health Care Facs. Fncg. Auth., Rev. Bonds (Saint Barnabas Health Care System 1.07 2,820 2,820
Issue), Series 2001-A, 1.07% 7/1/31 (1)
NEW YORK - 1.38%
New York City Housing Dev. Corp., Multi-Family Mortgage Rev. Bonds (Columbus 1.05 5,000 5,000
Apartments), Series 1995-A, 1.05% 3/15/25 (1)
OHIO - 1.20%
Building Auth., State Facs. Bonds (Arts Facs. Building Fund Projections), 1.07 1,000 1,000
Series 1997-A, 5.50% 10/1/03
Higher Education Capital Facs., G.O. Bonds, Series 2000-B, 5.25% 5/1/04 0.98 2,000 2,049
Highway Capital Improvements Bonds, Series E, 5.25% 5/1/04 0.98 1,275 1,307
PENNSYLVANIA - 2.68%
Delaware County, Industrial Dev. Auth., Variable Rate Demand Solid Waste Rev. 1.10 1,695 1,695
Bonds (Scott Paper Co. Project), Series 1984-E, 1.10% 12/1/18 (1)
Lehigh County, General Purpose Auth. (Saint Luke's Hospital of Bethlehem, 1.25 1,000 1,000
PA Project), Hospital Rev. Bonds, Series of 2001, 1.25% 7/1/31 (1)
Montgomery County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds:
Exelon Generation Co., LLC Project, Series 2001-B, TECP:
0.90% 11/4/03 0.90 2,000 2,000
0.90% 11/5/03 0.90 1,000 1,000
0.85% 11/6/03 0.85 1,000 1,000
PECO Energy Co. Project, Series 1994-A, TECP 0.85% 10/6/03 0.85 3,000 3,000
RHODE ISLAND - 1.10%
Rhode Island Student Loan Auth., Student Loan Program Rev. Bonds, Series 1996-2, 1.15 4,000 4,000
AMT, 1.15% 6/1/26 (1)
SOUTH CAROLINA - 3.77%
Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP:
0.85% 10/3/03 0.85 5,500 5,500
0.85% 10/14/03 0.85 2,500 2,500
0.85% 10/16/03 0.85 5,700 5,700
TENNESSEE - 2.04%
Health, Educational and Housing Fac., Board of the County of Shelby, Variable
Rate Rev. Bonds (Baptist Memorial Hospital Project), Series 2000:
1.00% 10/30/03 1.00 2,000 2,000
0.92% 11/14/03 0.92 3,000 3,000
Public Building Auth. of the City of Clarksville, Adjusted Rate Pooled Fncg.
Rev. Bonds: (1)
(Municipal Bond Fund), Series 2003, 1.22% 1/1/33 1.22 1,000 1,000
Series 2001, 1.22% 7/1/31 1.22 1,400 1,400
TEXAS - 24.04%
Public Fin. Auth., Rev. Notes, Series 2003, TECP:
0.85% 10/2/03 0.85 6,000 6,000
0.85% 10/6/03 0.85 2,000 2,000
0.85% 10/14/03 0.85 1,900 1,900
Board of Regents of The University of Texas System, Permanent University Fund
Flexible Rate Notes:
Series 1998-A, 0.87% 11/6/03 0.87 5,000 5,000
Series 2002-A:
0.90% 11/3/03 0.90 5,000 5,000
0.85% 11/5/03 0.85 2,200 2,200
0.85% 11/7/03 0.85 7,000 7,000
0.90% 11/10/03 0.90 2,600 2,600
Harris County, G.O. Notes, TECP:
Series B:
0.85% 10/10/03 0.85 2,130 2,130
0.85% 11/10/03 0.85 2,600 2,600
Series C, 0.88% 10/14/03 0.88 5,000 5,000
Series D, 0.85% 10/9/03 0.85 1,730 1,730
City of Houston G.O. Notes, TECP:
Series A:
0.80% 10/09/03 0.80 5,000 5,000
0.85% 10/23/03 0.85 3,000 3,000
Series C, 0.80% 10/21/03 0.80 2,000 2,000
Series E, 0.85% 10/28/03 0.85 4,000 4,000
Public Improvement and Ref. Bonds, Series 2001-A, 5.00% 3/1/04 1.01 2,000 2,033
Lower Colorado River Auth., Series A, TECP:
0.80% 10/2/03 0.80 7,500 7,500
0.90% 10/8/03 0.90 3,000 3,000
0.85% 10/10/03 0.85 5,600 5,600
City of Midlotian Industrial Dev. Corp., Variable Rate Demand Pollution Control 1.07 1,900 1,900
Rev. Bonds (Box-Crow Cement Company Project), 1.07% 12/1/09 (1)
City of San Antonio, Electric and Gas Systems Notes, Series A, TECP:
0.80% 10/15/03 0.80 3,000 3,000
0.85% 10/20/03 0.85 2,700 2,700
0.85% 10/29/03 0.85 2,000 2,000
0.85% 11/18/03 0.85 2,500 2,499
UTAH - 3.58%
Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds,
AMBAC insured, TECP:
Series 1985-E:
0.83% 10/8/2003 0.83 2,000 2,000
0.86% 10/20/2003 0.86 2,500 2,500
Series 1985-F:
0.85% 11/5/2003 0.85 2,000 2,000
0.85% 11/12/2003 0.85 6,500 6,500
VIRGINIA - 5.43%
Public School Auth., School Equipment Fncg. Notes, Educational Technology, 0.94 1,200 1,225
Series VI, 5.125% 4/1/04
Fairfax County, Public Improvement Bonds, Series 2000-A:
5.25% 6/1/04 0.95 2,050 2,108
6.00% 6/1/04 0.90 2,000 2,067
Metropolitan Washington Airports Auth., Flexible Term PFC Rev Notes, Series
1999-A, AMT, TECP:
0.88% 10/2/03 0.88 2,700 2,700
0.92% 10/22/03 0.92 3,000 3,000
0.93% 10/27/03 0.93 2,500 2,500
0.98% 11/26/03 0.98 1,000 1,000
Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal 0.87 1,000 1,000
Associates Project), TECP, Series 1987-A, 0.87% 11/4/03
Industrial Dev. Auth. of the City of Roanoke, Hospital Rev. Ref. Bonds 1.22 1,670 1,670
(Carilion Health System Obligated Group), Series 2002-D, 1.22% 7/1/27 (1)
City of Virginia Beach, G.O. Public Improvement Bonds, Series 2003-A, 2.50% 5/1/04 1.01 2,500 2,522
WASHINGTON - 1.85%
Port of Seattle, Subordinate Lien Rev. Notes, Series 2001-B1, AMT, TECP, 0.95% 11/5/03 0.95 3,000 3,000
City of Tacoma, Rev. Bond Anticipation Notes, Series 2002-2A, TECP:
0.88% 10/6/03 0.88 2,500 2,500
0.90% 11/4/03 0.90 1,200 1,200
WEST VIRGINIA - 2.10%
Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project), 0.90 1,200 1,200
Series 1989-A, AMT, TECP, 0.90% 12/1/03
The County Commission of Marion County, Solid Waste Disposal, AMT, 1.11% 1.11 1,400 1,400
10/1/17 (1)
The County Commission of Putnam County, Solid Waste Disposal Rev. Bonds 1.09 5,000 5,000
(Toyota Motor Manufacturing Project), Series 2000-A, AMT, 1.09% 4/1/30 (1)
WISCONSIN - 3.41%
G.O. Notes, TECP:
Series 1997-A:
0.87% 10/6/03 0.87 2,000 2,000
0.85% 10/21/03 0.85 5,000 5,000
Series 1998-A, 0.85% 10/8/03 0.85 4,400 4,400
Milwaukee County, G.O. Corporate Purpose Bonds, Series 2001-A, 4.50% 10/1/03 1.07 1,000 1,000
WYOMING - 2.00%
Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds
(PacifiCorp Project), Series 1988-A, TECP:
0.88% 10/9/03 0.88 3,000 3,000
0.90% 11/4/03 0.90 2,300 2,300
0.90% 11/6/03 0.90 2,000 2,000
TOTAL INVESTMENT SECURITIES (cost: $361,859,000) 361,855
Other assets less liabilities 1,437
NET ASSETS $363,292
(1) Coupon rate may change periodically; the date of the next scheduled coupon
rate change is considered to be the maturity date.
KEY TO ABBREVIATIONS
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Ref. = Refunding
Rev. = Revenue
TECP = Tax-Exempt Commercial Paper
See Notes to Financial Statements
THE TAX-EXEMPT MONEY FUND OF AMERICA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2003 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market
(cost: $361,859) $361,855
Cash 1,017
Receivables for:
Sales of fund's shares $991
Interest 716 1,707
364,579
LIABILITIES:
Payables for:
Repurchases of fund's shares 1,109
Dividends on fund's shares 5
Investment advisory services 114
Services provided by affiliates 34
Deferred Trustees' compensation 14
Other fees and expenses 11 1,287
NET ASSETS AT SEPTEMBER 30, 2003 $363,292
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $363,392
Distributions in excess of net investment income (96)
Net unrealized depreciation (4)
NET ASSETS AT SEPTEMBER 30, 2003 $363,292
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING
- UNLIMITED SHARES AUTHORIZED
Net assets Shares outstanding Net asset value per share
Class A $353,339 353,436 $1.00
Class R-5 9,953 9,956 1.00
STATEMENT OF OPERATIONS
for the year ended September 30, 2003 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $4,153
Fees and expenses:
Investment advisory services $1,408
Distribution services 184
Transfer agent services 134
Administrative services 10
Reports to shareholders 27
Registration statement and prospectus 120
Postage, stationery and supplies 48
Trustees' compensation 27
Auditing and legal 45
Custodian 22
State and local taxes 5
Other 23 2,053
Net investment income 2,100
Net unrealized depreciation on investments (22)
Net increase in net assets resulting
from operations $2,078
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2003 2002
OPERATIONS:
Net investment income $2,100 $3,471
Net unrealized depreciation
on investments (22) (51)
Net increase in net assets
resulting from operations 2,078 3,420
DIVIDENDS PAID TO SHAREHOLDERS FROM NET INVESTMENT INCOME (2,101) (3,474)
CAPITAL SHARE TRANSACTIONS 11,833 32,792
TOTAL INCREASE IN NET ASSETS 11,810 32,738
NET ASSETS:
Beginning of year 351,482 318,744
End of year $363,292 $351,482
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt Money Fund of America (the "fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income free from federal taxes,
while preserving capital and maintaining liquidity, through investments in
high-quality municipal securities with effective maturities of one year or less.
The fund offers two share classes consisting of one retail share class (Class A)
and one retirement plan share class (Class R-5). Both share classes are sold
without any sales charges and do not carry any conversion rights.
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. 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:
NET ASSET VALUE - The fund values its shares in accordance with
Securities and Exchange Commission ("SEC") rules, using the
penny-rounding method which permits the fund to maintain a constant net
asset value of $1.00 per share.
SECURITY VALUATION - Fixed-income securities are valued at prices
obtained from an independent pricing service. However, where the
investment adviser deems it appropriate, such securities will be valued
at the mean quoted bid and asked prices or at prices for securities of
comparable maturity, quality and type. Short-term securities maturing
within 60 days are valued at amortized cost, which approximates market
value. 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. Securities and other assets
for which representative market quotations are not readily available
are fair valued as determined in good faith by authority of the fund's
Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. 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) 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 TO SHAREHOLDERS - Dividends paid to shareholders are declared
daily after the determination of the fund's net investment income and
are paid to shareholders monthly.
2. 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 each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 2003, there were no
material differences between book and tax reporting. The fiscal year in which
amounts are distributed may differ from the year in which the net investment
income is recorded by the fund. As of September 30, 2003, the cost of investment
securities for federal income tax purposes was $361,859,000.
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
(dollars in thousands)
Undistributed net investment income $21
Short-term loss deferrals (expiring 2004 through 2011) (100)
Gross unrealized appreciation on investment securities 3
Gross unrealized depreciation on investment securities (7)
Distributions paid to shareholders from ordinary income were as follows (dollars
in thousands):
Share class(1) Year ended September 30, 2003 Year ended September 30, 2002
Class A $ 2,056 $ 3,461
Class R-5
45 13
Total $ 2,101 $ 3,474
(1) Class R-5 shares were offered beginning July 15, 2002.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.390% on the first $200 million
of daily net assets and decreasing to 0.290% on such assets in excess of $1.2
billion. For the year ended September 30, 2003, the investment advisory services
fee was $1,408,000, which was equivalent to an annualized rate of 0.381% 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 a plan of distribution for
Class A shares. Under the plan, the Board of Trustees approves certain
categories of expenses that are used to finance activities primarily
intended to sell fund shares. The plan provides for annual expenses,
based on a percentage of average daily net assets, of up to 0.15%. This
class may use a portion 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 for providing certain shareholder
services.
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for Class A shares. Under this agreement, this share class
compensates AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to Class R-5
shares 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 Class R-5. This class pays CRMC annual fees of
0.10% based on its respective average daily net assets. This 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.
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. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease 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.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Share class(1) Sales(2) Reinvestments of dividends
Amount Shares Amount Shares
Year ended September 30, 2003
Class A $ 416,952 416,952 $ 1,948 1,948
Class R-5 31,199 31,199 35 35
Total net increase
(decrease) $ 448,151 448,151 $ 1,983 1,983
Year ended September 30, 2002
Class A $ 456,264 456,264 $ 3,284 3,284
Class R-5 17,733 17,733 12 12
Total net increase
(decrease) $ 473,997 473,997 $ 3,296 3,296
Repurchases(2) Net increase
Amount Shares Amount Shares
Year ended September 30, 2003
Class A $ (407,232) (407,232) $ 11,668 11,668
Class R-5 (31,069) (31,069) 165 165
Total net increase
(decrease) $ (438,301) (438,301) $ 11,833 11,833
Year ended September 30, 2002
Class A $ (436,547) (436,547) $ 23,001 23,001
Class R-5 (7,954) (7,954) 9,791 9,791
Total net increase
(decrease) $ (444,501) (444,501) $ 32,792 32,792
(1) Class R-5 shares were offered beginning July 15, 2002.
(2) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
year ended September 30, 2003, the custodian fee of $22,000 included $9,000 that
was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net Net asset
beginning investment investment value, end
of period income(2) income of period
Class A:
Year ended 9/30/2003 $1.00 $.006 $(.006) $1.00
Year ended 9/30/2002 1.00 .010 (.010) 1.00
Year ended 9/30/2001 1.00 .029 (.029) 1.00
Year ended 9/30/2000 1.00 .032 (.032) 1.00
Year ended 9/30/1999 1.00 .025 (.025) 1.00
Class R-5:
Year ended 9/30/2003 1.00 .005 (.005) 1.00
Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Ratio of Ratio of
Net assets, expenses net income
Total end of period to average to average
return (in millions) net assets net assets
Class A:
Year ended 9/30/2003 .57% $353 .55% .57%
Year ended 9/30/2002 1.05 341 .54 1.04
Year ended 9/30/2001 2.92 319 .52 2.86
Year ended 9/30/2000 3.29 276 .64 3.23
Year ended 9/30/1999 2.51 255 .65 (3) 2.33
Class R-5:
Year ended 9/30/2003 .54 10 .58 .55
Period from 7/15/2002 to 9/30/2002 .17 10 .12 .17
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) Had CRMC not waived fees for investment advisory services, the fund's
expense ratio would have been .68%.
REPORT OF INDEPENDENT AUDITORS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE TAX-EXEMPT MONEY FUND
OF AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The Tax-Exempt Money Fund of America (the
"Fund") at September 30, 2003, and the results of its operations, the changes in
its net assets and its financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at September 30, 2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 31, 2003
TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid from net investment income. For purposes of computing this
exclusion, all of the dividends paid from net investment income qualify as
exempt-interest dividends.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
BOARD OF TRUSTEES
"NON-INTERESTED" TRUSTEES
YEAR FIRST
ELECTED
A TRUSTEE
NAME AND AGE OF THE FUND(1) PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
AMBASSADOR 1999 Corporate director and author; former U.S.
RICHARD G. CAPEN, JR., 69 Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc.; former
Chairman and Publisher, The Miami Herald
H. FREDERICK CHRISTIE, 70 CMTA 1976 Private investor; former President and CEO,
CTRS 1991 The Mission Group (non-utility holding company,
CTEX 1989 subsidiary of Southern California Edison Company)
DIANE C. CREEL, 55 1994 Chairman of the Board and CEO, AnAerobics, Inc.
(organic waste management)
MARTIN FENTON, 68 CMTA 1989 Chairman of the Board and CEO, Senior Resource
CTRS 1991 Group LLC (development and management of
CTEX 1989 senior living communities)
LEONARD R. FULLER, 57 CMTA 1994 President and CEO, Fuller Consulting (financial
CTRS 1994 management consulting firm)
CTEX 1995
RICHARD G. NEWMAN, 69 1991 Chairman of the Board and CEO, AECOM Technology Corporation
(engineering, consulting and professional services)
FRANK M. SANCHEZ, 60 1999 Principal, The Sanchez Family Corporation dba McDonald's Restaurants
(McDonald's licensee)
"NON-INTERESTED" TRUSTEES
NUMBER OF
BOARDS WITHIN THE
FUND COMPLEX(2)
ON WHICH
NAME AND AGE TRUSTEE SERVES OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE
AMBASSADOR 14 Carnival Corporation
RICHARD G. CAPEN, JR., 69
H. FREDERICK CHRISTIE, 70 19 Ducommun Incorporated; IHOP Corporation; Southwest Water Company;
Valero L.P.
DIANE C. CREEL, 55 12 Allegheny Technologies; BF Goodrich; Teledyne Technologies
MARTIN FENTON, 68 16 None
LEONARD R. FULLER, 57 14 None
RICHARD G. NEWMAN, 69 13 Southwest Water Company
FRANK M. SANCHEZ, 60 12 None
"INTERESTED" TRUSTEES(4)
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 FUND(1) UNDERWRITER OF THE FUND
PAUL G. HAAGA, JR., 54 CMTA 1985 Executive Vice President and Director, Capital
Chairman of the Boards CTRS 1990 Research and Management Company; Director,
CTEX 1992 The Capital Group Companies, Inc.;(5) Director,
American Funds Distributors, Inc.(5)
ABNER D. GOLDSTINE, 73 CMTA 1976 Senior Vice President and Director, Capital Research
President CTRS 1991 and Management Company
CTEX 1989
DON R. CONLAN, 67 1996 President (retired), The Capital Group Companies, Inc.(5)
CMTA = THE CASH MANAGEMENT TRUST OF AMERICA
CTRS = THE U.S. TREASURY MONEY FUND OF AMERICA
CTEX = THE TAX-EXEMPT MONEY FUND OF AMERICA
"INTERESTED" TRUSTEES(4)
NUMBER OF
BOARDS WITHIN THE
FUND COMPLEX(2)
NAME, AGE AND ON WHICH
POSITION WITH FUND TRUSTEE SERVES OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE
PAUL G. HAAGA, JR., 54 17 None
Chairman of the Boards
ABNER D. GOLDSTINE, 73 12 None
President
DON R. CONLAN, 67 7 None
CMTA = THE CASH MANAGEMENT TRUST OF AMERICA
CTRS = THE U.S. TREASURY MONEY FUND OF AMERICA
CTEX = THE TAX-EXEMPT MONEY FUND OF AMERICA
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.
(1) Trustees and officers of the fund serve until their resignation, removal or
retirement.
(2) Capital Research and Management Company manages the American Funds,
consisting of 29 funds. Capital Research and Management Company also manages
American Funds Insurance Series(R) and Anchor Pathway Fund, which serve as
the underlying investment vehicles for certain variable insurance contracts;
and Endowments, whose shareholders are limited to certain nonprofit
organizations.
(3) This 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).
(5) Company affiliated with Capital Research and Management Company.
OTHER OFFICERS
YEAR FIRST
ELECTED AN 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 FUND(1) UNDERWRITER OF THE FUND
NEIL L. LANGBERG, 50 1989 Vice President-- Investment Management Group,
Senior Vice President Capital Research and Management Company
CTEX only
TERESA S. COOK, 51 1991 Senior Vice President-- Investment Management
Vice President Group, Capital Research and Management Company
CMTA and CTRS only
MICHAEL J. DOWNER, 48 1994 Vice President and Secretary, Capital Research and
Vice President Management Company; Secretary, American Funds Distributors, Inc.;(5)
Director, Capital Bank and Trust Company(5)
KAREN F. HALL, 38 1999 Vice President-- Investment Management Group,
Assistant Vice President Capital Research and Management Company
CMTA and CTRS only
JULIE F. WILLIAMS, 55 CMTA 1982 Vice President-- Fund Business Management
Secretary CTRS 1991 Group, Capital Research and Management
CTEX 1989 Company
SUSI M. SILVERMAN, 33 2000 Vice President-- Fund Business Management
Treasurer Group, Capital Research and Management Company
KIMBERLY S. VERDICK, 39 1994 Assistant Vice President-- Fund Business
Assistant Secretary Management Group, Capital Research and Management Company
ANTHONY W. HYNES, JR., 40 1993 Vice President-- Fund Business Management
Assistant Treasurer Group, 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
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 AUDITORS
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, CA 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Most American Funds offer several share classes, each with its own sales charge
and expense structure allowing you to choose the one that best meets your
financial needs. The three American Funds money market funds each offer Class A
shares at no sales charge.
The Cash Management Trust of America (CMTA) is the only American Funds money
market fund that offers Class B, Class C and Class F shares. CMTA Class B, C and
F shares may be acquired only by exchanging from other American Funds within the
same share class (i.e., they may not be purchased directly) and do not offer
check-writing privileges. American Funds Class B, C and F shares are subject to
additional annual expenses and fees, including, in the case of B and C shares,
higher 12b-1 fees and contingent deferred sales charges if Class B shares are
redeemed within six years of purchase and Class C shares are redeemed within one
year of purchase. Class B, C and F shares are not available to certain
employer-sponsored retirement plans. See the CMTA prospectus for further
details.
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, OR FOR A
PROSPECTUS FOR ANY OF THE AMERICAN FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISER.
YOU MAY ALSO CALL AMERICAN FUNDS SERVICE COMPANY AT 800/421-0180 OR VISIT US AT
AMERICANFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY.
THE AMERICAN FUNDS PROXY VOTING GUIDELINES -- USED TO DETERMINE HOW TO VOTE
PROXIES RELATING TO PORTFOLIO SECURITIES -- ARE AVAILABLE UPON REQUEST, FREE OF
CHARGE, BY CALLING AMERICAN FUNDS SERVICE COMPANY, VISITING THE AMERICAN FUNDS
WEBSITE OR ACCESSING THE U.S. SECURITIES AND EXCHANGE COMMISSION WEBSITE AT
WWW.SEC.GOV.
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, 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 funds. If used as
sales material after December 31, 2003, this report must be accompanied by an
American Funds statistical update for the most recently completed calendar
quarter.
[logo - AMERICAN FUNDS(R)]
THE RIGHT CHOICE FOR THE LONG TERM(R)
WHAT MAKES AMERICAN FUNDS DIFFERENT?
For more than 70 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 29 carefully conceived, broadly diversified funds has
attracted over 20 million shareholder accounts.
OUR UNIQUE COMBINATION OF STRENGTHS INCLUDES THESE FIVE FACTORS:
o A LONG-TERM, VALUE-ORIENTED APPROACH
Rather than follow fads, we pursue a consistent strategy, focusing on each
investment's long-term potential.
o AN UNPARALLELED GLOBAL RESEARCH EFFORT
American Funds draws on one of the industry's most globally integrated
research networks.
o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Every American Fund is divided among a number of portfolio counselors. Each
takes responsibility for a portion independently, within each fund's
objectives; in most cases, research analysts manage a portion as well. Over
time this method has contributed to a consistency of results and continuity
of management.
o EXPERIENCED INVESTMENT PROFESSIONALS
The recent market decline was not the first for most of the portfolio
counselors who serve the American Funds. Nearly 70% of them were in the
investment business before the sharp market decline of 1987.
o A COMMITMENT TO LOW OPERATING EXPENSES
American Funds' operating expenses are among the lowest in the mutual fund
industry. Our portfolio turnover rates are low as well, keeping transaction
costs and tax consequences contained.
29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS
o GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP Fund(R)
EuroPacific Growth Fund(R)
The Growth Fund of America(R)
The New Economy Fund(R)
New Perspective Fund(R)
New World Fund(SM)
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
American Mutual Fund(R)
Capital World Growth and Income Fund(SM)
Fundamental Investors(SM)
The Investment Company of America(R)
Washington Mutual Investors Fund(SM)
o EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
Capital Income Builder(R)
The Income Fund of America(R)
o BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
American Balanced Fund(R)
o BOND FUNDS
Emphasis on current income through bonds
American High-Income Trust(SM)
The Bond Fund of America(SM)
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities Fund(SM)
o TAX-EXEMPT BOND FUNDS
Emphasis on tax-free current income through municipal bonds American
High-Income Municipal Bond Fund(R) Limited Term Tax-Exempt Bond Fund of
America(SM)
The Tax-Exempt Bond Fund of America(R)
STATE-SPECIFIC TAX-EXEMPT FUNDS
The Tax-Exempt Fund of California(R)
The Tax-Exempt Fund of Maryland(R)
The Tax-Exempt Fund of Virginia(R)
o MONEY MARKET FUNDS
THE CASH MANAGEMENT TRUST OF AMERICA(R)
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-960-1103
Litho in USA AGD/L/8063
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
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
Form N-CSR disclosure requirement not yet effective with respect to Registrant.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable.
ITEM 6 - Reserved
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 - Reserved
ITEM 9 - Controls and Procedures
(a) The officers providing the certifications in this report in accordance with
rule 30a-2 under the Investment Company Act of 1940 have concluded, based
on their evaluation of the Registrant's disclosure controls and procedures
(as such term is defined in such rule), 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 last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 10 - Exhibits
(a) The Code of Ethics that is the subject of the disclosure required by Item 2
is attached as an exhibit hereto.
(b) 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.
THE CASH MANAGEMENT TRUST OF AMERICA
By /s/ Abner D. Goldstine
- -------------------------------------------------------
Abner D. Goldstine, President and PEO
Date: December 9, 2003
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/ Abner D. Goldstine
--------------------------------------------------
Abner D. Goldstine, President and PEO
Date: December 9, 2003
By /s/ Susi M. Silverman
--------------------------------------------------
Susi M. Silverman, Treasurer
Date: December 9, 2003