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, 2005
Date of reporting period: March 31, 2005
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:
Michael Glazer
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
[cover illustration: abstract of three men, dressed in suits, carrying geometric
shapes and placing the shapes into similarly shaped cut-outs in the floor]
Semi-annual report for the six months ended March 31, 2005
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 organization
ranks among the nation's three largest mutual fund families. 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.
FIGURES SHOWN ARE PAST RESULTS FOR CLASS A SHARES AND ARE NOT PREDICTIVE OF
RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE LOWER OR HIGHER
THAN THOSE SHOWN. INVESTMENT RETURNS WILL VARY. 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. FOR THE MOST CURRENT INFORMATION AND MONTH-END
RESULTS, VISIT AMERICANFUNDS.COM.
The fund's investment adviser is waiving a portion of its management fees for
The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of
America. Results shown reflect the waiver, without which they would have been
lower. Please see the funds' Financial Highlights tables on pages 44 and 64,
respectively, for details.
Results for share classes B, C, F and 529 of The Cash Management Trust of
America can be found on page 26. Please see the inside back cover for important
information about share classes.
The return of principal for the bond holdings in The Cash Management Trust of
America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund
of America is not guaranteed. Fund shares are subject to the same interest rate,
inflation and credit risks associated with the underlying bond holdings.
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.
[illustration: abstract of three men, dressed in suits, carrying geometric
shapes and placing the shapes into similarly shaped cut-outs in the floor]
FELLOW SHAREHOLDERS:
During the first half of the money market funds' fiscal year, the U.S. economy
continued to expand, and the Federal Reserve Board responded by pushing up
interest rates. In this environment, the yields and the returns on The Cash
Management Trust of America, The U.S. Treasury Money Fund of America and The
Tax-Exempt Money Fund of America rose consistently during the six-month period
ended March 31, 2005. All three funds maintained a constant net asset value of
$1.00.
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA produced an income return of 0.84% (1.68%
annualized), with dividends reinvested, for the six-month period ended March 31,
2005. The fund's annualized seven-day yield as of March 31 was 2.12%.
THE U.S. TREASURY MONEY FUND OF AMERICA generated a six-month income return of
0.69% (1.38% annualized), 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 fund's
annualized seven-day yield for the week ended March 31, 2005, was 1.98%.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return
of 0.61% (1.22% annualized), with dividends reinvested, for the first half of
the fund's fiscal year. The income return for the six months is equivalent to a
taxable return of 0.94% (1.88% annualized) for investors in the 35.0% tax
bracket. A portion of the return may also be exempt from some state and local
taxes. The fund's annualized seven-day yield at the end of the period was 1.52%,
and its taxable equivalent annualized seven-day yield was 2.34%.
SEVEN-DAY YIELD: The seven-day yield is the annualized dividends paid by a fund
during that seven-day period. The seven-day yield for the week ending March 31,
2005, shows the earnings rate at the end of the funds' fiscal period and
reflects the rise in interest rates over the same six-month period.
RISING INFLATION, RISING INTEREST RATES
During the past year, the price of oil rose to historic levels. This has
resulted in higher consumer prices. The core CPI, which excludes food and energy
(items prone to volatile price swings), rose at a 2.6% seasonally adjusted
annual rate for the six-month period ended March 31, 2005. Including food and
energy, the CPI rose at a 3.8% seasonally adjusted annual rate for the same
period.
[Begin Sidebar]
CONSUMER PRICE INDEX AND FEDERAL FUNDS TARGET RATE VS. FUND YIELDS(1)
For the five years ended March 31, 2005 (plotted monthly)
[begin line chart]
<s> <c> <c> <c> <c> <c>
The
Federal Tax-Exempt The U.S. Treasury Consumer Price
Funds Rate Money Fund Cash Management Money Fund Index (inflation,
(target rate) of America (2) Trust of America of America (3) seasonally adjusted)
Mar-00 6.00 4.49 5.46 5.08 3.8
Apr-00 6.00 5.35 5.48 5.07 3.0
May-00 6.50 5.45 5.65 5.05 3.1
Jun-00 6.50 5.82 6.06 5.20 3.7
Jul-00 6.50 5.40 5.99 5.21 3.6
Aug-00 6.50 5.55 6.04 5.60 3.4
Sep-00 6.50 5.89 6.06 5.64 3.5
Oct-00 6.50 5.48 6.11 5.44 3.5
Nov-00 6.50 5.85 5.97 5.36 3.4
Dec-00 6.50 5.68 5.94 5.12 3.4
Jan-01 5.50 4.55 5.39 5.15 3.7
Feb-01 5.50 3.98 5.01 4.71 3.5
Mar-01 5.00 4.48 4.67 4.37 3.0
Apr-01 4.50 4.69 4.24 3.65 3.3
May-01 4.00 4.29 3.67 3.42 3.6
Jun-01 3.75 3.88 3.28 3.17 3.3
Jul-01 3.75 3.45 3.19 2.89 2.7
Aug-01 3.50 3.15 3.09 2.96 2.8
Sep-01 3.00 2.89 2.71 2.59 2.6
Oct-01 2.50 2.55 1.98 2.05 2.1
Nov-01 2.00 2.20 1.65 1.60 1.9
Dec-01 1.75 1.83 1.33 1.25 1.5
Jan-02 1.75 1.35 1.17 1.13 1.2
Feb-02 1.75 1.32 1.14 1.10 1.1
Mar-02 1.75 1.25 1.17 1.14 1.4
Apr-02 1.75 1.68 1.25 1.16 1.6
May-02 1.75 1.71 1.26 1.12 1.2
Jun-02 1.75 1.45 1.13 1.09 1.0
Jul-02 1.75 1.29 1.16 1.06 1.5
Aug-02 1.75 1.25 1.15 1.13 1.7
Sep-02 1.75 1.46 1.15 1.10 1.5
Oct-02 1.75 1.52 1.21 1.08 2.0
Nov-02 1.25 1.35 1.00 0.87 2.2
Dec-02 1.25 1.04 0.78 0.71 2.4
Jan-03 1.25 0.79 0.77 0.59 2.6
Feb-03 1.25 0.80 0.89 0.58 3.0
Mar-03 1.25 0.61 0.99 0.58 3.1
Apr-03 1.25 0.88 0.85 0.57 2.3
May-03 1.25 0.88 0.88 0.55 2.1
Jun-03 1.00 0.91 0.68 0.46 2.1
Jul-03 1.00 0.63 0.84 0.42 2.1
Aug-03 1.00 0.51 1.05 0.38 2.2
Sep-03 1.00 0.63 1.06 0.42 2.3
Oct-03 1.00 0.60 0.89 0.37 2.0
Nov-03 1.00 0.68 0.77 0.29 1.8
Dec-03 1.00 0.72 0.73 0.25 1.9
Jan-04 1.00 0.45 0.59 0.17 2.0
Feb-04 1.00 0.85 0.63 0.30 1.7
Mar-04 1.00 0.66 0.60 0.30 1.7
Apr-04 1.00 0.74 0.67 0.39 2.3
May-04 1.00 0.82 0.73 0.29 3.0
Jun-04 1.25 0.88 0.67 0.39 3.2
Jul-04 1.25 0.88 1.03 0.49 2.9
Aug-04 1.50 0.98 1.42 0.76 2.7
Sep-04 1.75 1.12 1.51 0.88 2.5
Oct-04 1.75 1.54 1.47 1.04 3.2
Nov-04 2.00 1.88 1.50 1.13 3.6
Dec-04 2.25 1.98 1.69 1.43 3.4
Jan-05 2.25 1.85 1.76 1.48 2.9
Feb-05 2.50 2.26 1.89 1.64 2.9
Mar-05 2.75 2.34 2.12 1.98 3.2
[end line chart]
YOUR FUNDS' ANNUALIZED SEVEN-DAY SEC YIELDS AS OF MARCH 31, 2005
The Cash Management Trust of America +2.12%
The U.S. Treasury Money Fund of America +1.98%
(reflecting a fee waiver, +1.96% without the waiver)
The Tax-Exempt Money Fund of America +1.52%
(reflecting a fee waiver, +1.50% without the waiver)
The Tax-Exempt Money Fund of America (taxable equivalent yield)(2) +2.34%
(reflecting a fee waiver, +2.31% without the waiver)
The seven-day SEC yields more accurately reflect the funds' current earnings
than do their 30-day yields or total returns.
The fund's investment adviser is waiving a portion of its management fees for
The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of
America. Results shown reflect the waiver, without which they would have been
lower. Please see the funds' Financial Highlights tables on pages 44 and 64,
respectively, for details.
(1) Equivalent to Securities and Exchange Commission (SEC) yields. Represents
the 7-day month-end averages.
(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.
[End Sidebar]
The outlook for continued economic growth and concerns about future gains in
inflation are good indicators that the Federal Reserve Board will continue the
pace of interest-rate increases. Since June 2004, the Fed has been steadily
raising the target federal funds rate (the rate banks charge each other for
overnight loans) in its effort to diminish the stimulative effect of low
interest rates. Since the start of the funds' fiscal year, the target rate has
been raised five times -- most recently on May 3 -- bringing it to 3.00%.
Any increase in the federal funds rate is quickly reflected in the yields on the
three money market funds. (The chart on page 2 demonstrates the interplay
between the federal funds rate and the funds' yields.) The Cash Management Trust
of America invests a significant portion of its portfolio in high-quality,
short-term commercial paper; The U.S. Treasury Money Fund of America invests
entirely in U.S. Treasury bills; and The Tax-Exempt Money Fund of America
invests in short-term municipal securities. Since the average maturities of the
three funds range from 23 to 43 days, further federal funds rate increases will
quickly boost yields in the funds.
THE FUNDS' OBJECTIVE
Our foremost objective in managing these money market funds is to protect our
shareholders' principal, while providing a reasonable income return. Because of
the stability and convenience they provide, American Funds money market funds
can play a valuable role in your overall financial plan. Many investors have
used the funds as a holding place for money targeted for emergencies or
short-term goals, or designated to move into equity or fixed-income funds
through a regular investment program.
Check-writing privileges and 24-hour access to your funds through American
FundsLine(R) (800/325-3590) and the American Funds website (americanfunds.com)
make these funds convenient holding places for your cash, regardless of your
goal.
Thank you for selecting an American Funds money market fund for your investment
portfolio. As always, 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
May 11, 2005
For current information about the funds, visit americanfunds.com.
CASH MANAGEMENT TRUST OF AMERICA
Investment portfolio unaudited
March 31, 2005
[begin pie chart]
CASH MANAGEMENT TRUST OF AMERICA
Commercial paper 76.81%
Federal agency discount notes 14.67
U.S. Treasuries 5.10
Certificates of deposit 3.40
Other assets less liabilities 0.02
[end pie chart]
THE CASH MANAGEMENT TRUST OF AMERICA
Investment portfolio, March 31, 2005
Principal Market
Yield at amount value
Short-term securities - 99.98% acquisition (000) (000)
Certificates of deposit - 3.40%
Toronto-Dominion Bank
April 6, 2005 2.64% $ 50,000 $ 50,000
May 16, 2005 2.83 50,000 49,997
Wells Fargo Bank, N.A.
May 10, 2005 2.81 100,000 100,000
May 12, 2005 2.81 100,000 100,000
Total certificates of deposit 299,997
Commercial paper - 76.81%
3M Co.
May 19, 2005 2.79 30,000 29,889
Abbott Laboratories Inc. (1)
April 26, 2005 2.66 50,000 49,904
May 3, 2005 2.75 40,000 39,899
Alcon Capital Corp (1)
April 7, 2005 2.57 50,000 49,975
Allied Irish Banks N.A. Inc. (1)
April 8, 2005 2.66 50,000 49,971
American Express Credit Corp.
April 20, 2005 2.76 50,000 49,924
American Honda Finance Corp.
April 11, 2005 2.60 25,000 24,980
April 18, 2005 2.62 50,000 49,938
April 26, 2005 2.70 25,000 24,951
May 6, 2005 2.72 50,000 49,869
Amsterdam Funding Corp. (1)
April 6, 2005 2.60 50,000 49,978
April 25, 2005 2.69 50,000 49,907
Anheuser-Busch Cos. Inc. (1)
April 4, 2005 2.52 50,000 49,990
Bank of America Corp.
April 18, 2005 2.65 65,000 64,918
May 2, 2005 2.75 100,000 99,762
May 6, 2005 2.82 35,000 34,902
Bank of Ireland (1)
April 4, 2005 2.60 50,000 49,986
April 8, 2005 2.60 50,000 49,971
Bank of Nova Scotia
May 2, 2005 2.71 50,000 49,880
Barclays U.S. Funding LLC
April 5, 2005 2.59 50,000 49,982
April 11, 2005 2.60 50,000 49,960
May 4, 2005 2.79 50,000 49,869
Barton Capital LLC (1)
April 22, 2005 2.72 75,000 74,876
BellSouth Corp. (1)
April 4, 2005 2.64 25,000 24,993
April 7, 2005 2.63 50,000 49,974
April 11, 2005 2.59 50,000 49,961
BMW U.S. Capital LLC (1)
April 22, 2005 2.65 50,000 49,919
April 27, 2005 2.76 50,000 49,897
BNP Paribas Finance Inc.
April 5, 2005 2.58 50,000 49,982
April 15, 2005 2.62 50,000 49,946
CAFCO, LLC (1)
April 14, 2005 2.64 55,000 54,944
April 25, 2005 2.73 145,000 144,726
Caisse d'Amortissement de la Dette Sociale
April 18, 2005 2.61 50,000 49,935
April 29, 2005 2.68 50,000 49,892
Calyon North America Inc.
May 6, 2005 2.75 50,000 49,863
May 17, 2005 2.83 50,000 49,816
Canadian Imperial Holdings Inc.
April 15, 2005 2.62 50,000 49,946
May 31, 2005 2.90 50,000 49,755
Canadian Wheat Board
April 21, 2005 2.62 25,000 24,962
Caterpillar Financial Services Corp.
April 7, 2005 2.64 40,000 39,980
April 19, 2005 2.73 30,000 29,957
CBA (Delaware) Finance Inc.
May 3, 2005 2.73 50,000 49,878
ChevronTexaco Funding Corp.
April 5, 2005 2.53 100,000 99,965
Clipper Receivables Co., LLC (1)
April 13, 2005 2.68 50,000 49,952
April 19, 2005 2.73 150,000 149,784
Coca-Cola Co.
April 5, 2005 2.57 75,000 74,973
April 29, 2005 2.71 25,000 24,946
May 5, 2005 2.74 50,000 49,867
May 24, 2005 2.84 50,000 49,788
Colgate-Palmolive Co. (1)
April 25, 2005 2.75 50,000 49,905
DaimlerChrysler Revolving Auto Conduit LLC I
April 5, 2005 2.66 25,000 24,991
DaimlerChrysler Revolving Auto Conduit LLC II
April 22, 2005 2.69 46,400 46,324
Danske Corp., Series A
April 4, 2005 2.58 50,000 49,989
April 29, 2005 2.71 50,000 49,891
May 9, 2005 2.75 50,000 49,853
Dexia Delaware LLC
April 1, 2005 2.64 50,000 49,996
April 15, 2005 2.64 50,000 49,945
DuPont (E.I.) de Nemours & Co.
April 12, 2005 2.61 100,000 99,913
April 29, 2005 2.73 50,000 49,890
Emerson Electric Co. (1)
April 18, 2005 2.75 25,000 24,966
Export Development Canada
April 8, 2005 2.53 50,000 49,972
Exxon Asset Management Co. (1)
May 20, 2005 2.76 50,000 49,809
FCAR Owner Trust I
May 10, 2005 2.82 100,000 99,681
First Data Corp.
April 6, 2005 2.64 25,000 24,989
Gannett Co. (1)
April 19, 2005 2.65 100,000 99,860
May 18, 2005 2.80 50,000 49,814
General Electric Capital Corp.
April 21, 2005 2.68 50,000 49,922
May 13, 2005 2.79 50,000 49,834
May 18, 2005 2.85 100,000 99,640
Harley-Davidson Funding Corp. (1)
April 27, 2005 2.75 20,000 19,959
HBOS Treasury Services PLC
April 8, 2005 2.61 50,000 49,975
April 18, 2005 2.65 50,000 49,934
Hershey Foods Corp. (1)
May 3, 2005 2.76 25,000 24,937
Hewlett-Packard Co. (1)
April 26, 2005 2.70 100,000 99,810
HSBC Finance Corp.
April 11, 2005 2.62 100,000 99,927
May 16, 2005 2.87 50,000 49,817
International Business Machines Corp.
May 6, 2005 2.76 100,000 99,724
ING (U.S.) Funding LLC
April 1, 2005 2.62 50,000 49,996
April 26, 2005 2.70 50,000 49,903
IXIS Commercial Paper Corp. (1)
April 21, 2005 2.69 125,000 124,804
KfW International Finance Inc. (1)
April 14, 2005 2.59 150,000 149,860
Kimberly-Clark Worldwide Inc. (1)
April 6, 2005 2.62 25,000 24,989
May 10, 2005 2.79 25,000 24,923
Lloyds TSB Bank PLC
April 1, 2005 2.62 50,000 49,996
Nestle Capital Corp. (1)
May 27, 2005 2.86 50,000 49,785
New Center Asset Trust Plus
April 19, 2005 2.66 100,000 99,860
Old Line Funding, LLC (1)
April 22, 2005 2.70 50,000 49,918
Park Avenue Receivables Co., LLC (1)
April 12, 2005 2.66 125,000 124,889
May 9, 2005 2.83 75,000 74,771
PepsiCo Inc. (1)
April 6, 2005 2.60 50,000 49,978
April 7, 2005 2.61 50,000 49,975
May 11, 2005 2.76 50,000 49,843
Pfizer Inc (1)
May 20, 2005 2.86 50,000 49,802
Pitney Bowes Inc. (1)
April 11, 2005 2.73 50,000 49,958
Private Export Funding Corp. (1)
April 4, 2005 2.60 25,000 24,993
April 21, 2005 2.60 25,000 24,965
Procter & Gamble Co. (1)
April 7, 2005 2.61 100,000 99,949
Shell Finance (U.K.) PLC
May 18, 2005 2.83 75,000 74,718
Siemens Capital Co. LLC
April 1, 2005 2.57 25,000 24,998
April 6, 2005 2.58 50,000 49,982
SLM Corp. (1)
April 6, 2005 2.76 50,000 49,977
Spintab AB (Swedmortgage)
April 7, 2005 2.59 50,000 49,975
Stadshypotek Delaware Inc. (1)
April 12, 2005 2.63 35,000 34,969
Svenska Handelsbanken Inc.
April 4, 2005 2.58 75,000 74,984
Three Pillars Funding, LLC (1)
April 1, 2005 2.66 50,000 49,996
April 18, 2005 2.77 25,000 24,965
Thunder Bay Funding, LLC (1)
April 1, 2005 2.59 25,000 24,998
April 20, 2005 2.66 36,155 36,102
Total Capital SA (1)
May 23, 2005 2.84 100,000 99,586
Toyota Motor Credit Corp.
April 11, 2005 2.60 30,000 29,976
May 23, 2005 2.88 45,000 44,814
Triple-A One Funding Corp. (1)
April 1, 2005 2.67 30,000 29,998
April 8, 2005 2.63 50,000 49,971
UBS Finance (Delaware) LLC
April 25, 2005 2.73 100,000 99,811
USAA Capital Corp.
April 1, 2005 2.73 50,000 49,996
Variable Funding Capital Corp. (1)
April 13, 2005 2.63 120,000 119,894
April 22, 2005 2.68 80,000 79,870
Wal-Mart Stores Inc. (1)
April 5, 2005 2.60 50,000 49,982
May 3, 2005 2.73 125,000 124,688
Total commercial paper 6,771,556
Federal agency discount notes - 14.67%
Fannie Mae
May 11, 2005 2.79 50,000 49,842
Federal Farm Credit Banks
April 1, 2005 2.49 35,200 35,198
April 6, 2005 2.49 15,000 14,994
April 8, 2005 2.53 50,000 49,972
April 26, 2005 2.68 50,000 49,904
Federal Home Loan Bank
April 8, 2005 2.51 25,000 24,986
April 15, 2005 2.53 125,000 124,879
April 20, 2005 2.56 45,000 44,939
April 29, 2005 2.62 75,000 74,845
May 4, 2005 2.71 25,000 24,936
Freddie Mac
April 15, 2005 2.63 25,000 24,973
April 20, 2005 2.58 125,000 124,829
May 4, 2005 2.74 100,000 99,742
May 25, 2005 2.83 50,000 49,766
International Bank for Reconstruction and Development
April 4, 2005 2.57 50,000 49,986
April 13, 2005 2.58 100,000 99,907
April 26, 2005 2.52 50,000 49,902
May 17, 2005 2.75 50,000 49,821
Tennessee Valley Authority
April 7, 2005 2.51 34,900 34,883
April 14, 2005 2.57 165,000 164,836
April 21, 2005 2.62 50,000 49,924
Total federal agency discount notes 1,293,064
U.S. Treasuries - 5.10%
U.S. Treasury Bills
April 14, 2005 2.54 100,000 99,903
April 21, 2005 2.70 50,000 49,923
April 28, 2005 2.57 200,000 199,627
May 5, 2005 2.61 100,000 99,764
Total U.S. Treasuries 449,217
TOTAL INVESTMENT SECURITIES (COST: $8,813,696,000) 8,813,834
Other assets less liabilities 1,495
NET ASSETS $8,815,329
(1) Restricted securities that can be resold only to institutional investors.
In practice, these securities are typically as liquid as unrestricted
securities in the portfolio. The total value of all restricted securities
was $3,356,065, which represented 38.07% of the net assets of the fund.
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2005 (dollars and shares in thousands, except per-share amounts)
Assets:
Investment securities at market
(cost: $8,813,696) $8,813,834
Cash 2,125
Receivables for:
Sales of fund's shares $61,791
Interest 212 62,003
8,877,962
Liabilities:
Payables for:
Repurchases of fund's shares 56,670
Dividends on fund's shares 342
Investment advisory services 2,078
Services provided by affiliates 3,418
Deferred Trustees' compensation 59
Other fees and expenses 66 62,633
Net assets at March 31, 2005 $8,815,329
Net assets consist of:
Capital paid in on shares of beneficial interest $8,815,198
Distributions in excess of net investment income (7)
Net unrealized appreciation 138
Net assets at March 31, 2005 $8,815,329
Shares of beneficial interest issued and outstanding - unlimited shares
authorized, 8,815,196 total shares outstanding
Net assets Shares outstanding Net asset value per share
Class A $7,602,700 7,602,586 $1.00
Class B 121,844 121,843 1.00
Class C 80,729 80,727 1.00
Class F 16,181 16,180 1.00
Class 529-A 124,654 124,652 1.00
Class 529-B 1,480 1,481 1.00
Class 529-C 6,528 6,528 1.00
Class 529-E 6,670 6,670 1.00
Class 529-F 3,649 3,649 1.00
Class R-1 11,868 11,867 1.00
Class R-2 406,728 406,722 1.00
Class R-3 251,303 251,299 1.00
Class R-4 100,470 100,468 1.00
Class R-5 80,525 80,524 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the six months ended March 31, 2005
Investment income: unaudited
Income: (dollars in thousands)
Interest $96,184
Fees and expenses:
Investment advisory services $12,166
Distribution services 6,958
Transfer agent services 5,838
Administrative services 2,091
Reports to shareholders 272
Registration statement and prospectus 465
Postage, stationery and supplies 1,367
Trustees' compensation 37
Auditing and legal 40
Custodian 86
State and local taxes 26
Other 64
Total expenses before reimbursements 29,410
Reimbursement of expenses 2,733 26,677
Net investment income 69,507
Net unrealized
appreciation on investments 246
Net increase in net assets resulting
from operations $69,753
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended March 31, September 30,
2005* 2004
Operations:
Net investment income $69,507 $66,502
Net unrealized appreciation (depreciation)
on investments 246 (89)
Net increase in net assets
resulting from operations 69,753 66,413
Dividends paid or accrued to
shareholders from net investment income (69,512) (66,502)
Capital share transactions (89,960) 174,556
Total (decrease) increase in net assets (89,719) 174,467
Net assets:
Beginning of period 8,905,048 8,730,581
End of period $8,815,329 $8,905,048
*Unaudited
See Notes to Financial Statements
Notes to financial statements unaudited
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(R) 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 proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
CollegeAmerica is a registered trademark of the Virginia College Savings
Plan.(SM)
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 bid prices, if asked prices are not available) or at prices for
securities of comparable maturity, quality and type. Short-term
securities purchased within 60 days to maturity are valued at amortized
cost, which approximates market value. The value of short-term
securities purchased with greater than 60 days to maturity with 60 days
or less remaining to maturity is determined based on the market value
on the 61st day. 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 under procedures
adopted by authority of the fund's Board of Trustees. Various factors
may be reviewed in order to make a good faith determination of a
security's fair value. These factors include, but are not limited to,
the type and cost of the security; contractual or legal restrictions on
resale of the security; relevant financial or business developments of
the issuer; actively traded similar or related securities; conversion
or exchange rights on the security; related corporate actions;
significant events occurring after the close of trading in the
security; and changes in overall market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) are allocated daily among the various
share classes based on the relative value of their settled shares.
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 March 31, 2005, 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 March 31, 2005, the cost of investment securities
for federal income tax purposes was $8,813,696,000.
As of March 31, 2005, the components of distributable earnings on a tax basis
were as follows (dollars in thousands):
Undistributed net investment income. $394
Gross unrealized appreciation on investment securities 173
Gross unrealized depreciation on investment securities (35)
Net unrealized appreciation on investment securities 138
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
SHARE CLASS SIX MONTHS ENDED MARCH 31, 2005 YEAR ENDED SEPTEMBER 30, 2004
Class A $ 63,524 $ 64,312
Class B 525 173
Class C 249 86
Class F 157 90
Class 529-A 887 482
Class 529-B 6 1
Class 529-C 17 5
Class 529-E 33 7
Class 529-F 24 7
Class R-1 37 10
Class R-2 1,412 294
Class R-3 1,292 292
Class R-4 625 217
Class R-5 724 526
Total $ 69,512 $ 66,502
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.
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. At the
beginning of the period, low income levels, caused by low short-term interest
rates, resulted in expenses exceeding this limit. At March 31, 2005, higher
income levels resulted in the fund's expenses falling within the limit. During
the six months ended March 31, 2005, these reimbursements totaled $2,183,000. As
a result, the fee shown on the accompanying financial statements of $12,166,000,
which was equivalent to an annualized rate of 0.278%, was reduced to $9,983,000,
or 0.228% of average daily net assets. 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.
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.
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
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 on the following page.
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 six months ended March 31,
2005, CRMC agreed to pay a portion of these fees for classes R-1, R-2
and R-3. For the six months ended March 31, 2005, the total fees paid
by CRMC were $3,000, $506,000 and $41,000 for classes R-1, R-2 and R-3,
respectively. Administrative services fees are presented gross of any
payments made by CRMC. Each 529 share class is subject to an additional
annual administrative services fee of 0.10% of its respective average
daily net assets; this fee is payable to the Commonwealth of Virginia
for the maintenance of the CollegeAmerica plan. Although these amounts
are included with administrative services fees in the accompanying
financial statements, the Commonwealth of Virginia is not considered a
related party.
Expenses under the agreements described on the previous page for the
six months ended March 31, 2005, were as follows (dollars in
thousands):
SHARE CLASS DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE SERVICES
SERVICES SERVICES
CRMC TRANSFER AGENT COMMONWEALTH OF
ADMINISTRATIVE SERVICES VIRGINIA
SERVICES ADMINISTRATIVE
SERVICES
Class A $3,699 $5,756 Not applicable Not applicable Not applicable
Class B 580 82 Not applicable Not applicable Not applicable
Class C 392 Included $59 $19 Not applicable
in
administrative
services
Class F 29 Included 17 6 Not applicable
in
administrative
services
Class 529-A 45 Included 88 23 $59
in
administrative
services
Class 529-B 9 Included 1 1 1
in
administrative
services
Class 529-C 30 Included 4 2 3
in
administrative
services
Class 529-E 15 Included 5 1 3
in
administrative
services
Class 529-F 4 Included 3 1 2
in
administrative
services
Class R-1 52 Included 8 6 Not applicable
in
administrative
services
Class R-2 1,424 Included 285 1,013 Not applicable
in
administrative
services
Class R-3 575 Included 172 195 Not applicable
in
administrative
services
Class R-4 104 Included 62 4 Not applicable
in
administrative
services
Class R-5 Not applicable Included 41 7 Not applicable
in
administrative
services
Total $6,958 $5,838 $745 $1,278 $68
At the beginning of the period, due to lower short-term interest rates, CRMC
agreed to pay a portion of the class-specific fees and expenses. For the six
months ended March 31, 2005, the total fees paid by CRMC for Class 529-C were
$115.
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 Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $ 6,698,728 6,698,728 $ 61,148 61,148
Class B 46,326 46,326 480 480
Class C 74,304 74,304 220 220
Class F 37,633 37,633 137 137
Class 529-A 51,619 51,619 877 877
Class 529-B 377 377 6 6
Class 529-C 2,411 2,411 17 17
Class 529-E 3,027 3,027 33 33
Class 529-F 1,529 1,529 23 23
Class R-1 12,128 12,128 36 36
Class R-2 506,495 506,495 1,359 1,359
Class R-3 314,169 314,169 1,249 1,249
Class R-4 158,047 158,047 599 599
Class R-5 124,446 124,446 708 708
Total net increase
(decrease) $ 8,031,239 8,031,239 $ 66,892 66,892
Year ended September 30, 2004
Class A $ 13,520,809 13,520,809 $ 61,845 61,845
Class B 154,993 154,993 157 157
Class C 192,284 192,284 77 77
Class F 103,416 103,416 82 82
Class 529-A 108,238 108,238 475 475
Class 529-B 2,040 2,040 1 1
Class 529-C 5,325 5,325 4 4
Class 529-E 4,489 4,489 7 7
Class 529-F 3,316 3,316 7 7
Class R-1 30,040 30,040 9 9
Class R-2 1,008,066 1,008,066 279 279
Class R-3 546,922 546,922 282 282
Class R-4 163,157 163,157 208 208
Class R-5 184,623 184,623 497 497
Total net increase
(decrease) $ 16,027,718 16,027,718 $ 63,930 63,930
Share class Repurchases(1) Net (decrease) increase
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $ (6,923,399) (6,923,399) $ (163,523) (163,523)
Class B (81,675) (81,675) (34,869) (34,869)
Class C (97,904) (97,904) (23,380) (23,380)
Class F (60,378) (60,378) (22,608) (22,608)
Class 529-A (40,002) (40,002) 12,494 12,494
Class 529-B (908) (908) (525) (525)
Class 529-C (1,569) (1,569) 859 859
Class 529-E (1,681) (1,681) 1,379 1,379
Class 529-F (1,142) (1,142) 410 410
Class R-1 (10,165) (10,165) 1,999 1,999
Class R-2 (449,631) (449,631) 58,223 58,223
Class R-3 (274,636) (274,636) 40,782 40,782
Class R-4 (123,151) (123,151) 35,495 35,495
Class R-5 (121,850) (121,850) 3,304 3,304
Total net increase
(decrease) $ (8,188,091) (8,188,091) $ (89,960) (89,960)
Year ended September 30, 2004
Class A $ (13,726,229) (13,726,229) $ (143,575) (143,575)
Class B (171,364) (171,364) (16,214) (16,214)
Class C (176,973) (176,973) 15,388 15,388
Class F (72,052) (72,052) 31,446 31,446
Class 529-A (85,852) (85,852) 22,861 22,861
Class 529-B (1,117) (1,117) 924 924
Class 529-C (3,117) (3,117) 2,212 2,212
Class 529-E (3,819) (3,819) 677 677
Class 529-F (2,402) (2,402) 921 921
Class R-1 (27,861) (27,861) 2,188 2,188
Class R-2 (865,474) (865,474) 142,871 142,871
Class R-3 (474,880) (474,880) 72,324 72,324
Class R-4 (124,548) (124,548) 38,817 38,817
Class R-5 (181,404) (181,404) 3,716 3,716
Total net increase
(decrease) $ (15,917,092) (15,917,092) $ 174,556 174,556
(1) 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
six months ended March 31, 2005, the custodian fee of $86,000, shown on the
accompanying financial statements, includes $8,000 that was offset by this
reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net
beginning investment investment
of period income (2) income
Class A:
Six months ended 3/31/2005 (5) $1.00 $.008 $(.008)
Year ended 9/30/2004 1.00 .008 (.008)
Year ended 9/30/2003 1.00 .011 (.011)
Year ended 9/30/2002 1.00 .013 (.013)
Year ended 9/30/2001 1.00 .045 (.045)
Year ended 9/30/2000 1.00 .055 (.055)
Class B:
Six months ended 3/31/2005 (5) 1.00 .004 (.004)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Year ended 9/30/2002 1.00 .005 (.005)
Year ended 9/30/2001 1.00 .037 (.037)
Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027)
Class C:
Six months ended 3/31/2005 (5) 1.00 .003 (.003)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Year ended 9/30/2002 1.00 .004 (.004)
Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014)
Class F:
Six months ended 3/31/2005 (5) 1.00 .007 (.007)
Year ended 9/30/2004 1.00 .004 (.004)
Year ended 9/30/2003 1.00 .006 (.006)
Year ended 9/30/2002 1.00 .011 (.011)
Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017)
Class 529-A:
Six months ended 3/31/2005 (5) 1.00 .008 (.008)
Year ended 9/30/2004 1.00 .005 (.005)
Year ended 9/30/2003 1.00 .007 (.007)
Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007)
Class 529-B:
Six months ended 3/31/2005 (5) 1.00 .003 (.003)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001)
Class 529-C:
Six months ended 3/31/2005 (5) 1.00 .003 (.003)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002)
Class 529-E:
Six months ended 3/31/2005 (5) 1.00 .005 (.005)
Year ended 9/30/2004 1.00 .002 (.002)
Year ended 9/30/2003 1.00 .002 (.002)
Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004)
Class 529-F:
Six months ended 3/31/2005 (5) 1.00 .007 (.007)
Year ended 9/30/2004 1.00 .003 (.003)
Year ended 9/30/2003 1.00 .004 (.004)
Period from 9/16/2002 to 9/30/2002 1.00 - (8) - (8)
Class R-1:
Six months ended 3/31/2005 (5) 1.00 .003 (.003)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001)
Class R-2:
Six months ended 3/31/2005 (5) 1.00 .004 (.004)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001)
Class R-3:
Six months ended 3/31/2005 (5) 1.00 .006 (.006)
Year ended 9/30/2004 1.00 .002 (.002)
Year ended 9/30/2003 1.00 .002 (.002)
Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002)
Class R-4:
Six months ended 3/31/2005 (5) 1.00 .007 (.007)
Year ended 9/30/2004 1.00 .004 (.004)
Year ended 9/30/2003 1.00 .006 (.006)
Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002)
Class R-5:
Six months ended 3/31/2005 (5) 1.00 .009 (.009)
Year ended 9/30/2004 1.00 .007 (.007)
Year ended 9/30/2003 1.00 .009 (.009)
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005)
Net asset Net assets,
value, end Total end of period
of period return (3) (in millions)
Class A:
Six months ended 3/31/2005 (5) $1.00 .84% $7,603
Year ended 9/30/2004 1.00 .84 7,766
Year ended 9/30/2003 1.00 1.05 7,910
Year ended 9/30/2002 1.00 1.35 8,305
Year ended 9/30/2001 1.00 4.63 7,075
Year ended 9/30/2000 1.00 5.66 5,417
Class B:
Six months ended 3/31/2005 (5) 1.00 .42 122
Year ended 9/30/2004 1.00 .12 157
Year ended 9/30/2003 1.00 .13 173
Year ended 9/30/2002 1.00 .53 158
Year ended 9/30/2001 1.00 3.75 46
Period from 3/15/2000 to 9/30/2000 1.00 2.73 1
Class C:
Six months ended 3/31/2005 (5) 1.00 .34 81
Year ended 9/30/2004 1.00 .10 104
Year ended 9/30/2003 1.00 .12 89
Year ended 9/30/2002 1.00 .40 100
Period from 3/16/2001 to 9/30/2001 1.00 1.40 13
Class F:
Six months ended 3/31/2005 (5) 1.00 .72 16
Year ended 9/30/2004 1.00 .41 39
Year ended 9/30/2003 1.00 .55 7
Year ended 9/30/2002 1.00 1.13 10
Period from 3/26/2001 to 9/30/2001 1.00 1.71 4
Class 529-A:
Six months ended 3/31/2005 (5) 1.00 .75 125
Year ended 9/30/2004 1.00 .47 112
Year ended 9/30/2003 1.00 .66 89
Period from 2/15/2002 to 9/30/2002 1.00 .73 34
Class 529-B:
Six months ended 3/31/2005 (5) 1.00 .32 1
Year ended 9/30/2004 1.00 .10 2
Year ended 9/30/2003 1.00 .12 1
Period from 6/7/2002 to 9/30/2002 1.00 .09 - (7)
Class 529-C:
Six months ended 3/31/2005 (5) 1.00 .28 6
Year ended 9/30/2004 1.00 .10 6
Year ended 9/30/2003 1.00 .12 3
Period from 4/2/2002 to 9/30/2002 1.00 .15 1
Class 529-E:
Six months ended 3/31/2005 (5) 1.00 .54 7
Year ended 9/30/2004 1.00 .15 5
Year ended 9/30/2003 1.00 .22 5
Period from 3/11/2002 to 9/30/2002 1.00 .39 1
Class 529-F:
Six months ended 3/31/2005 (5) 1.00 .66 4
Year ended 9/30/2004 1.00 .28 3
Year ended 9/30/2003 1.00 .43 2
Period from 9/16/2002 to 9/30/2002 1.00 .04 - (7)
Class R-1:
Six months ended 3/31/2005 (5) 1.00 .34 12
Year ended 9/30/2004 1.00 .10 10
Year ended 9/30/2003 1.00 .12 8
Period from 5/29/2002 to 9/30/2002 1.00 .10 1
Class R-2:
Six months ended 3/31/2005 (5) 1.00 .36 407
Year ended 9/30/2004 1.00 .11 348
Year ended 9/30/2003 1.00 .12 206
Period from 5/21/2002 to 9/30/2002 1.00 .11 23
Class R-3:
Six months ended 3/31/2005 (5) 1.00 .55 251
Year ended 9/30/2004 1.00 .16 211
Year ended 9/30/2003 1.00 .23 138
Period from 6/4/2002 to 9/30/2002 1.00 .22 15
Class R-4:
Six months ended 3/31/2005 (5) 1.00 .74 100
Year ended 9/30/2004 1.00 .43 65
Year ended 9/30/2003 1.00 .55 26
Period from 6/27/2002 to 9/30/2002 1.00 .23 1
Class R-5:
Six months ended 3/31/2005 (5) 1.00 .89 80
Year ended 9/30/2004 1.00 .72 77
Year ended 9/30/2003 1.00 .87 74
Period from 5/15/2002 to 9/30/2002 1.00 .50 49
Ratio of expenses Ratio of expenses Ratio of
to average net to average net net income
assets before assets after to average
reimbursements reimbursements(4) net assets
Class A:
Six months ended 3/31/2005 (5) .58% (6) .53%(6) 1.67% (6)
Year ended 9/30/2004 .57 .28 .84
Year ended 9/30/2003 .55 .23 1.05
Year ended 9/30/2002 .59 .59 1.33
Year ended 9/30/2001 .59 .59 4.48
Year ended 9/30/2000 .61 .61 5.53
Class B:
Six months ended 3/31/2005 (5) 1.36 (6) 1.36 (6) .81 (6)
Year ended 9/30/2004 1.34 1.02 .12
Year ended 9/30/2003 1.38 1.14 .14
Year ended 9/30/2002 1.40 1.40 .47
Year ended 9/30/2001 1.41 1.41 3.01
Period from 3/15/2000 to 9/30/2000 1.43 (6) 1.43 (6) 5.21 (6)
Class C:
Six months ended 3/31/2005 (5) 1.53 (6) 1.53 (6) .64 (6)
Year ended 9/30/2004 1.51 1.05 .10
Year ended 9/30/2003 1.55 1.16 .12
Year ended 9/30/2002 1.55 1.51 .31
Period from 3/16/2001 to 9/30/2001 1.55 (6) 1.55 (6) 2.05 (6)
Class F:
Six months ended 3/31/2005 (5) .75 (6) .75 (6) 1.34 (6)
Year ended 9/30/2004 .72 .71 .61
Year ended 9/30/2003 .73 .73 .58
Year ended 9/30/2002 .77 .77 1.11
Period from 3/26/2001 to 9/30/2001 .80 (6) .80 (6) 3.09 (6)
Class 529-A:
Six months ended 3/31/2005 (5) .70 (6) .70 (6) 1.51 (6)
Year ended 9/30/2004 .67 .66 .48
Year ended 9/30/2003 .62 .62 .61
Period from 2/15/2002 to 9/30/2002 .60 (6) .60 (6) 1.16 (6)
Class 529-B:
Six months ended 3/31/2005 (5) 1.55 (6) 1.55 (6) .62 (6)
Year ended 9/30/2004 1.53 1.06 .10
Year ended 9/30/2003 1.52 1.13 .12
Period from 6/7/2002 to 9/30/2002 .47 .47 .08
Class 529-C:
Six months ended 3/31/2005 (5) 1.64 (6) 1.63 (6) .58 (6)
Year ended 9/30/2004 1.63 1.05 .10
Year ended 9/30/2003 1.62 1.11 .11
Period from 4/2/2002 to 9/30/2002 .79 .75 .12
Class 529-E:
Six months ended 3/31/2005 (5) 1.12 (6) 1.12 (6) 1.10 (6)
Year ended 9/30/2004 1.11 .98 .15
Year ended 9/30/2003 1.11 1.05 .17
Period from 3/11/2002 to 9/30/2002 1.09 (6) 1.09 (6) .66 (6)
Class 529-F:
Six months ended 3/31/2005 (5) .87 (6) .87 (6) 1.34 (6)
Year ended 9/30/2004 .86 .85 .30
Year ended 9/30/2003 .85 .85 .33
Period from 9/16/2002 to 9/30/2002 .03 .03 .04
Class R-1:
Six months ended 3/31/2005 (5) 1.57 (6) 1.51(6) .70 (6)
Year ended 9/30/2004 1.56 1.03 .10
Year ended 9/30/2003 1.61 1.08 .10
Period from 5/29/2002 to 9/30/2002 .71 .51 .09
Class R-2:
Six months ended 3/31/2005 (5) 1.74 (6) 1.47 (6) .74 (6)
Year ended 9/30/2004 1.76 1.03 .11
Year ended 9/30/2003 1.68 1.08 .11
Period from 5/21/2002 to 9/30/2002 .57 .52 .11
Class R-3:
Six months ended 3/31/2005 (5) 1.13 (6) 1.09 (6) 1.12 (6)
Year ended 9/30/2004 1.12 .97 .16
Year ended 9/30/2003 1.10 1.03 .17
Period from 6/4/2002 to 9/30/2002 .37 .34 .22
Class R-4:
Six months ended 3/31/2005 (5) .72 (6) .72 (6) 1.50 (6)
Year ended 9/30/2004 .71 .70 .46
Year ended 9/30/2003 .72 .72 .48
Period from 6/27/2002 to 9/30/2002 .30 .19 .27
Class R-5:
Six months ended 3/31/2005 (5) .42 (6) .42 (6) 1.78 (6)
Year ended 9/30/2004 .42 .40 .75
Year ended 9/30/2003 .41 .41 .84
Period from 5/15/2002 to 9/30/2002 .16 .16 .50
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Based on average shares outstanding.
(3) Total returns exclude all sales charges, including contingent deferred
sales charges.
(4) The ratios in this column reflect the impact, if any, of certain
reimbursements from CRMC. During some of the periods shown, CRMC reimbursed
expenses, as provided by the Investment Advisory and Service Agreement.
During the start-up period for the retirement plan share classes (except
R-5), CRMC agreed to pay a portion of the fees related to transfer agent
services. In addition, during some of the periods shown, due to lower
short-term interest rates, CRMC agreed to pay a portion of the
class-specific fees and expenses for some of the share classes.
(5) Unaudited.
(6) Annualized.
(7) Amount less than $1 million.
(8) Amount less than $.001.
See Notes to Financial Statements
THE CASH MANAGEMENT TRUST OF AMERICA
OTHER SHARE CLASS RESULTS (unaudited)
Class B, Class C, Class F and Class 529
Figures shown are past results and are not predictive of results in future
periods. Current and future results may be lower or higher than those shown.
Share prices and returns will vary, so investors may lose money. For the most
current information and month-end results, visit americanfunds.com.
Average annual total returns for periods ended March 31, 2005:
1 year 5 years Life of class
Class B shares(1)
Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%,
payable only if shares are
sold within six years of purchase -4.51% +1.11% +1.32%(2)
Not reflecting CDSC +0.49% +1.49% +1.51%(2)
Class C shares(1)
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase -0.61% -- +0.58%(3)
Not reflecting CDSC +0.39% -- +0.58%(3)
Class F shares(4)
Not reflecting annual asset-based fee charged by
sponsoring firm +0.96% -- +1.13%(5)
Class 529-A shares +1.02% -- +0.84%(6)
Class 529-B shares(1)
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase -4.62% -- -1.21%(7)
Not reflecting CDSC +0.38% -- +0.23%(7)
Class 529-C shares(1)
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase -0.67% -- +0.22%(8)
Not reflecting CDSC +0.33% -- +0.22%(8)
Class 529-E shares(1,4) +0.64% -- +0.42%(9)
Class 529-F shares(1,4)
Not reflecting annual asset-based fee charged by
sponsoring firm +0.84% -- +0.56%(10)
(1) The fund's investment adviser has reimbursed certain expenses. Results
shown reflect the reimbursement, without which they would have been lower.
Please see the Financial Highlights table on page 22 for details.
(2) From March 15, 2000, when Class B shares were first sold.
(3) From March 16, 2001, when Class C shares were first sold.
(4) These shares are sold without any initial or contingent deferred sales
charge.
(5) From March 26, 2001, when Class F shares were first sold.
(6) From February 15, 2002, when Class 529-A shares were first sold.
(7) From June 7, 2002, when Class 529-B shares were first sold.
(8) From April 2, 2002, when Class 529-C shares were first sold.
(9) From March 11, 2002, when Class 529-E shares were first sold.
(10) From September 16, 2002, when Class 529-F shares were first sold.
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (October
1, 2004 through March 31, 2005).
ACTUAL EXPENSES:
The first line of each share class in the table on page 29 provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line under the heading entitled "Expenses paid
during period" to estimate the expenses you paid on your account during this
period. There are some account fees that are charged to certain types of
accounts, such as Individual Retirement Accounts and CollegeAmerica accounts
(generally, a $10 fee is charged to set up the account and an additional $10 fee
is charged to the account annually) that would increase the amount of expenses
paid on your account. In addition, retirement plan participants may be subject
to certain fees charged by the plan sponsor, and Class F and Class 529-F
shareholders may be subject to fees charged by financial intermediaries,
typically ranging from 0.75% to 1.50% of assets annually depending on services
offered. You can estimate the impact of these fees by adding the amount of the
fees to the total estimated expenses you paid on your account during the period
as calculated above. In addition, your ending account value would also be lower
by the amount of these fees.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second line of each share
class in the table on page 29 provides information about hypothetical account
values and hypothetical expenses based on the actual expense ratio for the share
class and an assumed rate of return of 5.00% per year before expenses, which is
not the actual return of the share class. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the fund and other funds. To do so, compare this
5.00% hypothetical example with the 5.00% hypothetical examples that appear in
the shareholder reports of the other funds. There are some account fees that are
charged to certain shareholders, such as Individual Retirement Accounts and
CollegeAmerica accounts (generally, a $10 fee is charged to set up the account
and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor,
and Class F and Class 529-F shareholders may be subject to fees charged by
financial intermediaries, typically ranging from 0.75% to 1.50% of assets
annually depending on services offered. You can estimate the impact of these
fees by adding the amount of the fees to the total estimated expenses you paid
on your account during the period as calculated on the previous page. In
addition, your ending account value would also be lower by the amount of these
fees.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning Ending Expenses Annualized
account account paid during expense ratio
value value period(1)
10/1/2004 3/31/2005
Class A -- actual return $1,000.00 $1,008.38 $2.65 .53%
Class A -- assumed 5% return 1,000.00 1,022.29 2.67 .53
Class B -- actual return 1,000.00 1,004.21 6.80 1.36
Class B -- assumed 5% return 1,000.00 1,018.15 6.84 1.36
Class C -- actual return 1,000.00 1,003.35 7.64 1.53
Class C -- assumed 5% return 1,000.00 1,017.30 7.70 1.53
Class F -- actual return 1,000.00 1,007.16 3.75 .75
Class F -- assumed 5% return 1,000.00 1,021.19 3.78 .75
Class 529-A -- actual return 1,000.00 1,007.51 3.50 .70
Class 529-A -- assumed 5% return 1,000.00 1,021.44 3.53 .70
Class 529-B -- actual return 1,000.00 1,003.23 7.74 1.55
Class 529-B -- assumed 5% return 1,000.00 1,017.20 7.80 1.55
Class 529-C -- actual return 1,000.00 1,002.83 8.14 1.63
Class 529-C -- assumed 5% return 1,000.00 1,016.80 8.20 1.63
Class 529-E -- actual return 1,005.39 5.60 1.12
1,000.00
Class 529-E -- assumed 5% return 1,000.00 1,019.35 5.64 1.12
Class 529-F -- actual return 1,000.00 1,006.63 4.35 .87
Class 529-F -- assumed 5% return 1,000.00 1,020.59 4.38 .87
Class R-1 -- actual return 1,000.00 1,003.45 7.54 1.51
Class R-1 -- assumed 5% return 1,000.00 1,017.40 7.59 1.51
Class R-2 -- actual return 1,000.00 1,003.63 7.34 1.47
Class R-2 -- assumed 5% return 1,000.00 1,017.60 7.39 1.47
Class R-3 -- actual return 1,000.00 1,005.55 5.45 1.09
Class R-3 -- assumed 5% return 1,000.00 1,019.50 5.49 1.09
Class R-4 -- actual return 1,000.00 1,007.42 3.60 .72
Class R-4 -- assumed 5% return 1,000.00 1,021.34 3.63 .72
Class R-5 -- actual return 1,000.00 1,008.89 2.10 .42
Class R-5 -- assumed 5% return 1,000.00 1,022.84 2.12 .42
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (182), and divided by 365 (to reflect the one-half year period).
THE CASH MANAGEMENT TRUST OF AMERICA
APPROVAL OF RENEWAL OF INVESTMENT ADVISORY AND SERVICE AGREEMENT
The fund's Board of Trustees has unanimously approved renewal of the fund's
Investment Advisory and Service Agreement (the "agreement") with Capital
Research and Management Company ("CRMC") for an additional one-year term through
May 31, 2006, following the unanimous recommendation of the fund's Contracts
Committee (the "Committee"), composed of all of the fund's independent Trustees.
The material factors and the conclusions that formed the basis for the
Committee's recommendation and the Board's subsequent approval are described
below.
MATERIALS REVIEWED
During the course of each year, the independent Trustees receive a wide variety
of materials relating to the nature, extent and quality of services provided by
CRMC. In addition, the Committee requests and reviews supplementary information
focused on evaluating the agreement. This includes extensive materials regarding
investment results of the fund and CRMC, advisory fee and expense comparisons,
financial and profitability information with respect to CRMC, descriptions of
various functions such as compliance monitoring and portfolio trading practices,
and information about the personnel providing investment management and
administrative services to the fund.
INVESTMENT RESULTS
The Committee reviewed the investment results of the fund and compared those
results with the Lipper Money Market Funds Index and selected funds included in
that index. The Committee noted that the fund's investment results surpassed
those of the index as well as the average of the selected funds for the one-,
three- and five-year periods ended December 31, 2004, and matched the
performance of the index and the average of the selected funds for the 10-year
period ended on that date. The Committee also noted that investment results in
2003 and 2004 benefited from a contractual expense reimbursement requirement
that helped maintain fund yields during that period of low interest rates.
CRMC AND ITS PERSONNEL
The Committee also considered the depth and quality of CRMC's research
capabilities; the low turnover rates of its key personnel; the overall financial
strength and stability of its organization; the experience, capability and
integrity of its senior management; its commitment to ensuring compliance with
applicable laws and regulations; its efforts to keep the Trustees informed; and
its sensitivity to matters that may involve conflicts of interest with the fund.
ADVISORY FEES AND TOTAL EXPENSES
The Committee compared the advisory fees and total expenses of the fund (as a
percentage of average net assets) with the average fees and expenses of the
funds in the index and those of the selected group of funds referred to on the
previous page. The Committee noted that the fund's advisory fees and total
expenses were lower than the fees and expenses of both the index and the average
of the selected funds and that its advisory fees had been reduced during 2004 as
a result of the certain contractual expense reimbursement requirement. The
Committee also reviewed information regarding the advisory fees paid by
institutional clients of an affiliate of CRMC with similar investment mandates.
The Committee concluded that, although the fees paid by those clients generally
were lower than those paid by American Funds, the differences appropriately
reflected CRMC's significantly greater responsibilities with respect to the
American Funds and the more comprehensive regulatory regime applicable to mutual
funds.
ADVISER PROFITABILITY; ECONOMIES OF SCALE
The Committee reviewed information regarding CRMC's costs of providing services
to the American Funds, and also reviewed the operating results and profitability
of CRMC, noting that those results were comparable to the reported results of
several large publicly held investment management companies. The Committee also
received information during the past year regarding the manner in which CRMC's
employees were compensated. The Committee also noted that CRMC's profits would
be reduced further during the coming year as a result of an increase in CRMC's
voluntary fee waiver, and that the fund's advisory fee structure provides for
significant fee reductions as fund assets increase, reflecting economies of
scale in the cost of operations that are shared with investors.
ANCILLARY BENEFITS
In addition, the Committee considered a variety of other benefits received by
CRMC and its affiliates as a result of CRMC's relationship with the fund and the
other American Funds, including fees for administrative services provided to
certain share classes; fees paid to CRMC's affiliated transfer agent; sales
charges and distribution fees received and retained by the fund's principal
underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC's
institutional management affiliate. The Trustees reviewed CRMC's portfolio
trading practices, noting that, while CRMC receives the benefit of research
provided by broker-dealers executing portfolio transactions on behalf of the
fund, it does not obtain third-party research or other services in return for
allocating brokerage to such broker-dealers.
CONCLUSIONS
Based on its review, the Committee concluded that the nature, extent and quality
of the services being provided to the fund by CRMC continued to be excellent,
and that each of the factors referred to above favored renewal of the agreement.
However, in deciding to recommend renewal, the Committee did not identify a
single issue as the controlling factor and this summary does not describe all of
the matters considered. The Committee was advised with respect to relevant legal
standards by counsel independent of CRMC. The Committee discussed the
continuance of the agreement with management and in a private session with
counsel at which no representatives of CRMC were present. Based on its review,
the Committee concluded that the fund's advisory fee is fair, both absolutely
and in comparison with those of other similar funds in the industry; that the
fund's shareholders have received reasonable value in return for those fees; and
that continuation of the agreement is in the best interest of the fund's
shareholders. The Committee's conclusions were confirmed by separate vote of the
independent Trustees at the March 15, 2005, Board meeting.
U.S. TREASURY MONEY FUND OF AMERICA
Investment portfolio unaudited
March 31, 2005
[begin pie chart]
U.S. Treasuries 100%
[end pie chart]
Yield at amount value
Short-term securities - 100.08% acquisition (000) (000)
U.S. Treasuries - 100.08%
U.S. Treasury Bills 4-7-05 2.29%-2.34% $ 35,450 $ 35,437
U.S. Treasury Bills 4-14-05 2.36%-2.69% 98,750 98,662
U.S. Treasury Bills 4-21-05 2.58%-2.72% 101,800 101,644
U.S. Treasury Bills 4-28-05 2.60%-2.61% 50,400 50,300
U.S. Treasury Bills 5-5-05 2.52%-2.66% 42,750 42,649
U.S. Treasury Bills 5-12-05 2.54%-2.67% 91,800 91,538
U.S. Treasury Bills 5-26-05 2.71%-2.74% 58,000 57,770
U.S. Treasury Bills 6-9-05 2.75% 11,000 10,943
U.S. Treasury Bills 6-16-05 2.79% 40,000 39,770
TOTAL INVESTMENT SECURITIES (cost: $528,671,000) 528,713
Other assets less liabilities (399)
NET ASSETS $528,314
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2005 (dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market
(cost: $528,671) $528,713
Cash 653
Receivables for sales of fund's shares 1,214
530,580
LIABILITIES:
Payables for:
Repurchases of fund's shares $1,868
Dividends on fund's shares 36
Investment advisory services 128
Services provided by affiliates 204
Deferred Trustees' compensation 23
Other fees and expenses 7 2,266
NET ASSETS AT MARCH 31, 2005 $528,314
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $528,272
Net unrealized appreciation 42
NET ASSETS AT MARCH 31, 2005 $528,314
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES
AUTHORIZED, 528,271 TOTAL SHARES OUTSTANDING
Net assets Shares outstanding Net asset value per share
Class A $474,200 474,161 $1.00
Class R-1 1,049 1,049 1.00
Class R-2 25,119 25,117 1.00
Class R-3 17,644 17,642 1.00
Class R-4 3,664 3,664 1.00
Class R-5 6,638 6,638 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the six months ended March 31, 2005
INVESTMENT INCOME: unaudited
Income: (dollars in thousands)
Interest $5,541
Fees and expenses:
Investment advisory services $828
Distribution services 444
Transfer agent services 366
Administrative services 115
Reports to shareholders 18
Registration statement and prospectus 66
Postage, stationery and supplies 61
Trustees' compensation 14
Auditing and legal 11
Custodian 8
State and local taxes 7
Other 27
Total expenses before reimbursements/waivers 1,965
Reimbursement/waiver of expenses 76 1,889
Net investment income 3,652
Net unrealized
appreciation on investments 6
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,658
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended March 31, September 30,
2005* 2004
OPERATIONS:
Net investment income $3,652 $2,220
Net unrealized appreciation
on investments 6 7
Net increase in net assets
resulting from operations 3,658 2,227
Dividends paid or accrued to
shareholders from net investment income (3,651) (2,219)
Capital share transactions (51,454) (83,761)
Total decrease in net assets (51,447) (83,753)
NET ASSETS:
Beginning of period 579,761 663,514
End of period $528,314 $579,761
* Unaudited
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS unaudited
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 proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
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 bid prices, if asked prices are not available) or at prices for
securities of comparable maturity, quality and type. Short-term
securities purchased within 60 days to maturity are valued at amortized
cost, which approximates market value. The value of short-term
securities purchased with greater than 60 days to maturity with 60 days
or less remaining to maturity is determined based on the market value
on the 61st day. Securities and other assets for which representative
market quotations are not readily available are fair valued as
determined in good faith under procedures adopted 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) are allocated daily among the various
share classes based on the relative value of their settled shares.
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 March 31, 2005, 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 March 31, 2005, the cost of investment securities
for federal income tax purposes was $528,671,000.
As of March 31, 2005, the components of distributable earnings on a tax basis
were as follows (dollars in thousands):
Undistributed net investment income $59
Gross unrealized appreciation on investment securities 42
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
Share class Six months ended March 31, 2005 Year ended September 30, 2004
Class A $ 3,442 $ 2,147
Class R-1 3 1
Class R-2 62 19
Class R-3 75 16
Class R-4 21 5
Class R-5 48 31
Total $ 3,651 $ 2,219
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
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. During the six months ended March 31, 2005,
CRMC reduced investment advisory services fees by $41,000. As a result, the fee
shown on the accompanying financial statements of $828,000, which was equivalent
to an annualized rate of 0.300%, was reduced to $787,000, or 0.285% 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 on the following page:
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.
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.
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
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 on the following page.
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 six months ended March 31, 2005,
CRMC agreed to pay a portion of these fees for classes R-1, R-2 and
R-3. For the six months ended March 31, 2005, the total fees paid by
CRMC were $449, $33,000 and $1,000 for classes R-1, R-2 and R-3,
respectively. Administrative services fees are presented gross of any
payments made by CRMC.
Expenses under the agreements described on the previous page for the
six months ended March 31, 2005, were as follows (dollars in
thousands):
SHARE CLASS DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE SERVICES
SERVICES SERVICES
CRMC TRANSFER AGENT
ADMINISTRATIVE SERVICES
SERVICES
Class A $305 $366 Not applicable Not applicable
Class R-1 5 Included in
administrative
services $1 $1
Class R-2 89 Included in
administrative
services 18 65
Class R-3 41 Included in
administrative
services 12 12
Class R-4 4 Included in
administrative
services 3 -*
Class R-5 Not applicable Included in
administrative
services 3 -*
Total $444 $366 $37 $78
* Amount less than one thousand.
At the beginning of the period, due to lower short-term interest rates,
CRMC agreed to pay a portion of the class-specific fees and expenses.
For the six months ended March 31, 2005, the total fees paid by CRMC
were $62 and $676 for classes R-1 and R-2, respectively.
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 returns 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 Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $176,886 176,886 $ 3,262 3,262
Class R-1 540 540 3 3
Class R-2 15,775 15,775 61 61
Class R-3 15,724 15,724 71 71
Class R-4 9,921 9,921 20 20
Class R-5 6,781 6,781 25 25
Total net increase
(decrease) $225,627 225,627 $ 3,442 3,442
Year ended September 30, 2004
Class A $432,833 432,833 $ 2,052 2,052
Class R-1 1,164 1,164 -* -*
Class R-2 43,831 43,831 18 18
Class R-3 20,221 20,221 16 16
Class R-4 5,349 5,349 5 5
Class R-5 12,974 12,974 19 19
Total net increase
(decrease) $516,372 516,372 $ 2,110 2,110
Share class Repurchases(1) Net (decrease) increase
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $ (238,241) (238,241) $ (58,093) (58,093)
Class R-1 (570) (570) (27) (27)
Class R-2 (12,696) (12,696) 3,140 3,140
Class R-3 (13,887) (13,887) 1,908 1,908
Class R-4 (8,462) (8,462) 1,479 1,479
Class R-5 (6,667) (6,667) 139 139
Total net increase
(decrease) $ (280,523) (280,523) $ (51,454) (51,454)
Year ended September 30, 2004
Class A $ (533,936) (533,936) $ (99,051) (99,051)
Class R-1 (419) (419) 745 745
Class R-2 (36,449) (36,449) 7,400 7,400
Class R-3 (15,625) (15,625) 4,612 4,612
Class R-4 (4,662) (4,662) 692 692
Class R-5 (11,152) (11,152) 1,841 1,841
Total net increase
(decrease) $ (602,243) (602,243) $ (83,761) (83,761)
* Amount less than one thousand.
(1) 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
six months ended March 31, 2005, the custodian fee of $8,000, shown on the
accompanying financial statements, includes $4,000 that was offset by this
reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net
beginning investment investment
of period income(2) income
Class A:
Six months ended 3/31/2005 (4) $1.00 $.007 $(.007)
Year ended 9/30/2004 1.00 .004 (.004)
Year ended 9/30/2003 1.00 .006 (.006)
Year ended 9/30/2002 1.00 .013 (.013)
Year ended 9/30/2001 1.00 .042 (.042)
Year ended 9/30/2000 1.00 .049 (.049)
Class R-1:
Six months ended 3/31/2005 (4) 1.00 .002 (.002)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001)
Class R-2:
Six months ended 3/31/2005 (4) 1.00 .003 (.003)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .001 (.001)
Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001)
Class R-3:
Six months ended 3/31/2005 (4) 1.00 .004 (.004)
Year ended 9/30/2004 1.00 .001 (.001)
Year ended 9/30/2003 1.00 .002 (.002)
Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001)
Class R-4:
Six months ended 3/31/2005 (4) 1.00 .006 (.006)
Year ended 9/30/2004 1.00 .002 (.002)
Year ended 9/30/2003 1.00 .004 (.004)
Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002)
Class R-5:
Six months ended 3/31/2005 (4) 1.00 .008 (.008)
Year ended 9/30/2004 1.00 .006 (.006)
Year ended 9/30/2003 1.00 .008 (.008)
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005)
Net asset Net assets,
value, end Total end of period
of period return (in millions)
Class A:
Six months ended 3/31/2005 (4) $1.00 .69% $474
Year ended 9/30/2004 1.00 .39 532
Year ended 9/30/2003 1.00 .63 631
Year ended 9/30/2002 1.00 1.29 683
Year ended 9/30/2001 1.00 4.27 489
Year ended 9/30/2000 1.00 5.01 369
Class R-1:
Six months ended 3/31/2005 (4) 1.00 .24 1
Year ended 9/30/2004 1.00 .10 1
Year ended 9/30/2003 1.00 .12 - (6)
Period from 7/12/2002 to 9/30/2002 1.00 .11 - (6)
Class R-2:
Six months ended 3/31/2005 (4) 1.00 .25 25
Year ended 9/30/2004 1.00 .10 22
Year ended 9/30/2003 1.00 .12 15
Period from 6/11/2002 to 9/30/2002 1.00 .08 1
Class R-3:
Six months ended 3/31/2005 (4) 1.00 .44 17
Year ended 9/30/2004 1.00 .12 16
Year ended 9/30/2003 1.00 .18 11
Period from 8/16/2002 to 9/30/2002 1.00 .07 - (6)
Class R-4:
Six months ended 3/31/2005 (4) 1.00 .63 4
Year ended 9/30/2004 1.00 .24 2
Year ended 9/30/2003 1.00 .43 2
Period from 8/2/2002 to 9/30/2002 1.00 .17 - (6)
Class R-5:
Six months ended 3/31/2005 (4) 1.00 .78 7
Year ended 9/30/2004 1.00 .55 7
Year ended 9/30/2003 1.00 .75 5
Period from 5/15/2002 to 9/30/2002 1.00 .47 4
Ratio of expenses Ratio of expenses
to average to average Ratio of
net assets net assets net income
before reimbursements/ after reimbursements/ to average
waivers waivers(3) net assets
Class A:
Six months ended 3/31/2005 (4) .65% (5) .63% (5) 1.37% (5)
Year ended 9/30/2004 .62 .61 .39
Year ended 9/30/2003 .58 .58 .63
Year ended 9/30/2002 .63 .63 1.27
Year ended 9/30/2001 .66 .66 4.12
Year ended 9/30/2000 .62 .62 4.81
Class R-1:
Six months ended 3/31/2005 (4) 1.65 (5) 1.54 (5) .48 (5)
Year ended 9/30/2004 1.63 .94 .10
Year ended 9/30/2003 1.91 1.08 .12
Period from 7/12/2002 to 9/30/2002 .54 .32 .05
Class R-2:
Six months ended 3/31/2005 (4) 1.81 (5) 1.51 (5) .52 (5)
Year ended 9/30/2004 1.81 .92 .10
Year ended 9/30/2003 1.74 1.02 .10
Period from 6/11/2002 to 9/30/2002 .50 .44 .08
Class R-3:
Six months ended 3/31/2005 (4) 1.16 (5) 1.13 (5) .91 (5)
Year ended 9/30/2004 1.14 .89 .13
Year ended 9/30/2003 1.17 .99 .11
Period from 8/16/2002 to 9/30/2002 .20 .13 .07
Class R-4:
Six months ended 3/31/2005 (4) .78 (5) .77 (5) 1.29 (5)
Year ended 9/30/2004 .77 .76 .23
Year ended 9/30/2003 .79 .77 .36
Period from 8/2/2002 to 9/30/2002 .33 .12 .15
Class R-5:
Six months ended 3/31/2005 (4) .47 (5) .45 (5) 1.57 (5)
Year ended 9/30/2004 .45 .45 .57
Year ended 9/30/2003 .46 .46 .73
Period from 5/15/2002 to 9/30/2002 .18 .18 .46
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Based on average shares outstanding.
(3) The ratios in this column reflect the impact, if any, of certain
reimbursements/waivers from CRMC. During some of the periods shown, CRMC
reduced fees for investment advisory services for all share classes. During
the start-up period for the retirement plan share classes (except Class
R-5), CRMC agreed to pay a portion of the fees related to transfer agent
services. In addition, during some of the periods shown, due to lower
short-term interest rates, CRMC agreed to pay a portion of the
class-specific fees and expenses.
(4) Unaudited.
(5) Annualized.
(6) Amount less than $1 million.
See Notes to Financial Statements
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (October
1, 2004 through March 31, 2005).
ACTUAL EXPENSES:
The first line of each share class in the table on the next page provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses paid during period" to estimate the expenses you paid on your account
during this period. There are some account fees that are charged to certain
types of accounts, such as Individual Retirement Accounts (generally, a $10 fee
is charged to set up the account and an additional $10 fee is charged to the
account annually) that would increase the amount of expenses paid on your
account. In addition, retirement plan participants may be subject to certain
fees charged by the plan sponsor. You can estimate the impact of these fees by
adding the amount of the fees to the total estimated expenses you paid on your
account during the period as calculated above. In addition, your ending account
value would also be lower by the amount of these fees.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table on the next page provides
information about hypothetical account values and hypothetical expenses based on
the actual expense ratio for the share class and an assumed rate of return of
5.00% per year before expenses, which is not the actual return of the share
class. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the fund and
other funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor.
You can estimate the impact of these fees by adding the amount of the fees to
the total estimated expenses you paid on your account during the period as
calculated on the previous page. In addition, your ending account value would
also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning Ending Expenses Annualized
account account aid during expense ratio
value value period(1)
10/1/2004 3/31/2005
Class A -- actual return $1,000.00 $1,006.92 $3.15 .63%
Class A -- assumed 5% return 1,000.00 1,021.79 3.18 .63
Class R-1 -- actual return 1,000.00 1,002.39 7.69 1.54
Class R-1 -- assumed 5% return 1,000.00 1,017.25 7.75 1.54
Class R-2 -- actual return 1,000.00 1,002.55 7.54 1.51
Class R-2 -- assumed 5% return 1,000.00 1,017.40 7.59 1.51
Class R-3 -- actual return 1,000.00 1,004.43 5.65 1.13
Class R-3 -- assumed 5% return 1,000.00 1,019.30 5.69 1.13
Class R-4 -- actual return 1,000.00 1,006.26 3.85 .77
Class R-4 -- assumed 5% return 1,000.00 1,021.09 3.88 .77
Class R-5 -- actual return 1,000.00 1,007.83 2.25 .45
Class R-5 -- assumed 5% return 1,000.00 1,022.69 2.27 .45
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (182), and divided by 365 (to reflect the one-half year period).
THE TAX-EXEMPT MONEY FUND OF AMERICA
Investment portfolio unaudited
March 31, 2005
[begin pie chart]
Texas 19.84%
Maryland 10.58
Florida 8.36
Arizona 5.48
District of Columbia 5.28
Utah 4.95
Nevada 4.90
Virginia 4.56
Michigan 4.39
Wyoming 4.32
Other states 26.39
Other assets less liabilities .95
[end pie chart]
Principal Market
Yield at amount value
Short-term securities - 99.05% Acquisition (000) (000)
Arizona - 5.48%
City of Phoenix Civic Improvement Corp., Water System Rev. Bond Anticipation Notes, TECP:
Series 2003-A, 2.20% 5/27/05 2.20% $ 2,000 $ 2,000
Series 2003-B, 2.02% 5/13/05 2.02 5,000 5,000
Salt River Project Agricultural Improvement and Power Dist., TECP:
Series B, 1.93% 4/13/05 1.93 4,300 4,300
Series C:
1.94% 4/6/05 1.94 4,000 4,000
2.06% 5/12/05 2.06 7,500 7,500
District of Columbia - 5.28%
Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series 1999-A,
AMT, TECP, 2.11% 5/13/05 2.11 1,000 1,000
Multimodal Rev. Bonds (American National Red Cross Issue), Series 2000, TECP:
1.90% 4/4/05 1.90 4,000 4,000
1.94% 4/7/05 1.94 2,000 2,000
Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP:
Series 1999-B:
2.10% 5/26/05 2.10 4,500 4,500
2.25% 6/1/05 2.25 3,500 3,499
Series 1999-C:
2.05% 5/11/05 2.05 5,000 5,000
2.25% 6/3/05 2.25 2,000 1,999
Florida - 8.36%
Dade County, Special Obligation Bonds, Series 1990, 2.30% 10/1/10 (1) 2.30 1,115 1,115
Jacksonville County Electric Auth., Series 1993-C1, TECP:
1.94% 4/8/05 1.94 3,000 3,000
2.04% 5/11/05 2.04 2,000 2,000
Mayo Foundation Health Care Facs., Jacksonville Health Facs. Auth. (St. Luke's Hospital
Association), Rev. Ref. Bonds, Series 2001-B, TECP, 2.00% 5/5/05 2.00 2,000 2,000
Municipal Power Agcy. (Initial Pooled Loan Project), Series 1995-A, TECP:
1.90% 4/5/05 1.90 2,700 2,700
2.03% 5/4/05 2.03 2,000 2,000
Sarasota County Public Hospital Dist., Hospital Rev. Bonds (Sarasota Memorial
Hospital Project), TECP:
Series 1985-B, 2.04% 5/12/05 2.04 1,000 1,000
Series 1985-C:
2.00% 4/1/05 2.00 2,400 2,400
2.02% 5/2/05 2.02 3,000 3,000
2.10% 5/24/05 2.10 2,000 2,000
Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg. Program),
AMBAC/FGIC insured, TECP:
Series 2000-A:
2.00% 4/5/05 2.00 2,500 2,500
2.00% 4/6/05 2.00 2,500 2,500
1.94% 4/11/05 1.94 3,900 3,900
Series 2000-D:
1.94% 4/8/05 1.94 1,450 1,450
2.04% 5/6/05 2.04 1,400 1,400
2.25% 6/2/05 2.25 1,860 1,859
Georgia - 0.45%
Dev. Auth. of the Unified Government of Athens-Clarke County, Rev. Bonds (University
of Georgia Athletic Association Project), Series 2003, 2.30% 8/1/33 (1) 2.30 1,850 1,850
Indiana - 0.29%
City of Whiting, Environmental Facs. Rev. Ref. Bonds (BP Products North America Inc.
Project), Series 2002-C, AMT, 2.35% 7/1/34 (1) 2.35 1,200 1,200
Kentucky - 0.26%
Regional Airport Auth. of Louisville and Jefferson County, Special Facs. Rev. Bonds
(UPS Worldwide Forwarding, Inc. Project), Series 1999-A, AMT, 2.33% 1/1/29 (1) 2.33 1,100 1,100
Maryland - 10.58%
Baltimore County, Consolidated Public Improvement Bond Anticipation Notes,
Series 1995, TECP:
1.94% 4/4/05 1.94 2,000 2,000
1.95% 4/4/05 1.95 2,000 2,000
1.94% 4/5/05 1.94 2,000 2,000
1.94% 4/8/05 1.94 2,400 2,400
1.94% 4/11/05 1.94 5,000 5,000
2.00% 5/3/05 2.00 2,500 2,500
Health and Higher Educational Facs. Auth., Commercial Paper Rev. Notes, John Hopkins
University Issue, Series A, TECP:
1.93% 4/12/05 1.93 2,229 2,229
2.00% 5/5/05 2.00 3,400 3,400
2.25% 6/6/05 2.25 4,500 4,498
Montgomery County, Consolidated Public Improvement Commercial Paper Anticipation
Notes, Series 2002, TECP:
1.96% 4/7/05 1.96 8,500 8,500
1.92% 4/8/05 1.92 1,500 1,500
1.95% 4/12/05 1.95 1,500 1,500
2.28% 5/5/05 2.28 2,500 2,500
2.03% 5/9/05 2.03 2,000 2,000
Washington Suburban Sanitary Dist., Montgomery and Prince George's Counties, G.O.
Ref. Bonds of 2001, 4.50% 6/1/05 1.96 2,000 2,008
Massachusetts - 2.64%
Health and Educational Fac. Auth., Rev. Notes, Harvard University Issue, Series
2002-EE, TECP:
2.03% 5/10/05 2.03 3,000 3,000
2.03% 5/11/05 2.03 3,000 3,000
2.00% 5/16/05 2.00 5,000 4,999
Michigan - 4.39%
Regents of the University of Michigan, Series F, TECP:
2.00% 4/1/05 2.00 4,360 4,360
1.94% 4/5/05 1.94 3,300 3,300
2.00% 4/8/05 2.00 2,000 2,000
2.00% 4/12/05 2.00 6,600 6,600
2.08% 5/23/05 2.08 2,000 2,000
Minnesota - 3.00%
City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical Center),
TECP:
Series 1988-E, 2.08% 5/10/05 2.08 3,000 3,000
Series 1992-B, 2.03% 5/6/05 2.03 3,000 3,000
Series 2000-A, 2.00% 5/5/05 2.00 2,600 2,600
Series 2000-C, 2.08% 5/16/05 2.08 2,500 2,500
Series 2001-B, 2.00% 5/5/05 2.00 1,400 1,400
Nebraska - 0.62%
Hospital Auth. No. 1 of Lancaster County, Health Facs. Rev. Bonds (Immanuel Health
Systems - Williamsburg Project), Series 2000-A, 2.31% 7/1/30 (1) 2.31 2,585 2,585
Nevada - 4.90%
Clark County, G.O. (Limited Tax) Flood Control Commercial Paper Notes, Series 2003-A,
TECP, 2.02% 5/18/05 2.02 10,000 9,999
Clark County Industrial Dev. Rev. Bonds (Nevada Cogeneration Associates #2 Project),
Series 1992, AMT, 2.35% 12/1/22 (1) 2.35 2,100 2,100
Las Vegas Valley Water Dist., G.O. Limited Tax Water Notes (SNWA Rev. Supported),
Series 2004-A, TECP:
1.95% 4/1/05 1.95 2,900 2,900
2.00% 4/6/05 2.00 5,400 5,400
New Mexico - 1.69%
Tax and Rev. Anticipation Notes, Series 2004-A:
4.00% 6/30/05 1.96 2,000 2,008
5.00% 6/30/05 3.03 5,000 5,031
New York - 1.20%
Metropolitan Transportation Auth., Rev. Bond Anticipation Notes, Series A-1, TECP,
1.90% 4/1/05 1.90 5,000 5,000
North Carolina - 4.09%
Capital Facs. Fin. Agcy., Duke University Issue, Series A-1, TECP:
2.00% 4/4/05 2.00 4,090 4,090
2.08% 5/2/05 2.08 3,000 3,000
2.04% 5/9/05 2.04 8,600 8,600
2.08% 5/23/05 2.08 1,345 1,345
Ohio - 1.08%
G.O. Highway Capital Improvement Bonds (Full Faith and Credit/Highway User Receipts),
Series H, 6.00% 5/1/05 1.93 2,000 2,006
State University, General Receipts Bonds, Series 2003-B, 4.00% 6/1/05 2.00 2,500 2,507
Pennsylvania - 0.48%
Montgomery County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds (PECO
Energy Co. Project), Series 2001-B, TECP, 2.06% 5/11/05 2.06 2,000 2,000
South Carolina - 2.35%
Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP:
1.93% 4/13/05 1.93 3,300 3,300
2.30% 5/4/05 2.30 4,000 4,000
2.05% 5/10/05 2.05 2,500 2,500
Tennessee - 0.55%
City of Memphis, G.O. Bonds, Series 2003-A2, TECP, 2.04% 5/6/05 2.04 2,300 2,300
Texas - 19.84%
Gulf Coast Waste Disposal Auth., Environmental Facs. Rev. Bonds (BP Products North
America Inc. Project), Series 2002, AMT, 2.35% 7/1/36 (1) 2.35 1,625 1,625
Harris County, TECP:
G.O. Bonds:
Series B, 1.95% 4/11/05 1.95 3,780 3,780
Series C, 2.30% 4/29/05 2.30 4,600 4,600
Series D:
1.96% 4/5/05 1.96 900 900
2.00% 4/5/05 2.00 250 250
Hospital Dist., Rev. Notes, Series A, 2.00% 5/12/05 2.00 3,500 3,500
City of Houston, TECP:
G.O. Notes: Series A:
2.02% 5/17/05 2.02 4,000 4,000
2.05% 5/17/05 2.05 6,000 5,999
Series B, 2.08% 5/19/05 2.08 1,000 1,000
Series E, 1.95% 4/7/05 1.95 3,500 3,500
Hotel Occupancy Tax and Parking Rev. Notes, Series A:
1.94% 4/6/05 1.94 1,800 1,800
2.04% 5/10/05 2.04 6,200 6,200
Public Fin. Auth., G.O. Bonds (Colonial Roadway Projects), TECP:
Series 2002-B:
1.94% 4/8/05 1.94 3,950 3,950
1.95% 4/12/05 1.95 3,500 3,500
Series 2003, 1.98% 5/3/05 1.98 5,000 5,000
City of San Antonio, TECP:
Electric and Gas Systems, Series A:
1.97% 4/13/05 1.97 5,500 5,500
2.05% 5/9/05 2.05 4,000 4,000
2.03% 5/13/05 2.03 5,000 5,000
Water System Commericial Paper Notes, Series 2001-A, 1.93% 4/13/05 1.93 2,000 2,000
Board of Regents of the Texas A&M University System, Rev. Fin. System Notes,
Series B, 1.97% 4/8/05 1.97 3,000 3,000
Board of Regents of The University of Texas System, Permanent University Fund
Flexible Rate Notes, Series 2002-A, TECP:
2.02% 5/2/05 2.02 9,000 9,000
2.04% 5/5/05 2.04 3,000 3,000
2.05% 5/17/05 2.05 1,511 1,511
Utah - 4.95%
Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds, TECP:
Series 1985-F, AMBAC insured:
1.92% 4/5/05 1.92 2,600 2,600
1.93% 4/11/05 1.93 2,000 2,000
1.95% 4/12/05 1.95 1,000 1,000
2.30% 5/6/05 2.30 4,000 4,000
Series 1997-B2:
2.01% 5/12/05 2.01 5,500 5,500
2.02% 5/16/05 2.02 2,000 2,000
Series 1998-B5:
1.96% 4/6/05 1.96 2,500 2,500
2.01% 5/10/05 2.01 1,000 1,000
Virginia - 4.56%
Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series 1999-A,
AMT, TECP:
1.94% 4/4/05 1.94 4,000 4,000
2.06% 5/4/05 2.06 2,500 2,500
2.15% 5/27/05 2.15 3,000 3,000
2.17% 5/31/05 2.17 2,700 2,699
Peninsula Ports Auth., Coal Terminal Rev. Ref. Bonds (Dominion Terminal Associates
Project), Series 1987-B, TECP, 1.94% 4/6/05 1.94 3,500 3,500
University of Virginia Issue Rev. Pledge Notes, Series 2003-A, TECP, 2.00% 5/6/05 2.00 3,300 3,300
Washington - 3.80%
Everett Public Facs. Dist., Project Rev. Notes, Series 2002-A, TECP, 2.10% 5/25/05 2.10 2,000 2,000
King County, Unlimited Tax G.O. Ref. Bonds, Series 2003, 5.00% 6/1/05 2.06 2,000 2,009
Port of Seattle, Subordinate Lien Rev. Notes, TECP:
Series A-1, 1.94% 4/11/05 1.94 2,000 2,000
Series B-1, AMT, 2.07% 5/4/05 2.07 4,800 4,800
City of Tacoma, Limited Tax G.O. Bond Anticipation Notes, Series 2002-2B, TECP:
1.96% 4/1/05 1.96 3,000 3,000
1.94% 4/11/05 1.94 2,000 2,000
West Virginia - 1.23%
Higher Education Policy Commission, Rev. Bonds (Higher Education Facs.), Series 2004-B,
FGIC insured, 6.00% 4/1/05 2.06 1,000 1,000
Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project), AMT, TECP:
Series 1989-A, 1.99% 4/8/05 1.99 1,200 1,200
Series 1990-A, 2.11% 5/4/05 2.11 2,900 2,900
Wisconsin - 2.66%
Transportation Rev., TECP:
Series 1997-A:
1.94% 4/7/05 1.94 3,000 3,000
2.10% 5/25/05 2.10 1,500 1,500
Series 1998-A, 1.98% 5/3/05 1.98 6,584 6,584
Wyoming - 4.32%
Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds (PacifiCorp
Project), Series 1988-A, TECP:
2.00% 4/1/05 2.00 3,000 3,000
2.00% 4/4/05 2.00 6,750 6,750
2.00% 4/5/05 2.00 5,250 5,250
2.06% 5/11/05 2.06 1,000 1,000
2.08% 5/23/05 2.08 2,000 2,000
TOTAL INVESTMENT SECURITIES (cost: $412,467,000) 412,444
Other assets less liabilities 3,959
NET ASSETS $416,403
(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
Certs. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
TECP = Tax-Exempt Commercial Paper
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2005 (dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market
(cost: $412,467) $412,444
Cash 980
Receivables for:
Sales of fund's shares $3,247
Interest 1,031 4,278
417,702
LIABILITIES:
Payables for:
Repurchases of fund's shares 1,049
Dividends on fund's shares 37
Investment advisory services 128
Services provided by affiliates 52
Deferred Trustees' compensation 25
Other fees and expenses 8 1,299
Net assets at March 31, 2005 $416,403
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $416,520
Distributions in excess of net investment income (94)
Net unrealized depreciation (23)
Net assets at March 31, 2005 $416,403
Shares of beneficial interest issued and outstanding - unlimited shares
authorized, 416,523 total shares outstanding
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $395,083 395,196 $1.00
Class R-5 21,320 21,327 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the six months ended March 31, 2005
INVESTMENT INCOME: unaudited
Income: (dollars in thousands)
Interest $3,599
FEES AND EXPENSES:
Investment advisory services $781
Distribution services 99
Transfer agent services 66
Administrative services 11
Reports to shareholders 13
Registration statement and prospectus 66
Postage, stationery and supplies 29
Trustees' compensation 15
Auditing and legal 11
Custodian 9
State and local taxes 6
Other 27
Total expenses before waivers 1,133
Waiver of expenses 39 1,094
Net investment income 2,505
Net unrealized
depreciation on investments (1)
Net increase in net assets resulting
from operations $2,504
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended March 31, September 30,
2005* 2004
OPERATIONS:
Net investment income $2,505 $1,935
Net unrealized depreciation
on investments (1) (18)
Net increase in net assets
resulting from operations 2,504 1,917
Dividends paid or accrued to
shareholders from net investment income (2,506) (1,935)
Capital share transactions (22,656) 75,787
Total (decrease) increase in net assets (22,658) 75,769
NET ASSETS:
Beginning of period 439,061 363,292
End of period $416,403 $439,061
*Unaudited
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS unaudited
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). Each share class is sold
without any sales charges and does not carry any conversion rights.
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
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 bid prices, if asked prices are not available) or at prices for
securities of comparable maturity, quality and type. Short-term
securities purchased within 60 days to maturity are valued at amortized
cost, which approximates market value. The value of short-term
securities purchased with greater than 60 days to maturity with 60 days
or less remaining to maturity is determined based on the market value
on the 61st day. 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 under procedures
adopted by authority of the fund's Board of Trustees. Various factors
may be reviewed in order to make a good faith determination of a
security's fair value. These factors include, but are not limited to,
the type and cost of the security; contractual or legal restrictions on
resale of the security; relevant financial or business developments of
the issuer; actively traded similar or related securities; conversion
or exchange rights on the security; related corporate actions;
significant events occurring after the close of trading in the
security; and changes in overall market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) are allocated daily among the two
share classes based on the relative value of their settled shares.
Unrealized gains and losses are allocated daily among the two 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. Generally, income earned and
distributed by the fund is exempt from federal income taxes.
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 March 31, 2005, 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 March 31, 2005, the cost of investment securities
for federal income tax purposes was $412,467,000.
As of March 31, 2005, the components of distributable earnings on a tax basis
were as follows (dollars in thousands):
Undistributed net investment income $62
Short-term loss carryforwards (expiring 2006-2011) (94)
Gross unrealized depreciation on investment securities (23)
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
SHARE CLASS SIX MONTHS ENDED MARCH 31, 2005 YEAR ENDED SEPTEMBER 30, 2004
Class A $ 2,397 $ 1,874
Class R-5 109 61
Total $ 2,506 $ 1,935
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 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.
During the six months ended March 31, 2005, CRMC reduced investment advisory
services fees by $39,000. As a result, the fee shown on the accompanying
financial statements of $781,000, which was equivalent to an annualized rate of
0.380%, was reduced to $742,000 or 0.361% 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
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 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 Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $204,106 204,106 $ 2,242 2,242
Class R-5 41,884 41,884 65 65
Total net increase
(decrease) $245,990 245,990 $ 2,307 2,307
Year ended September 30, 2004
Class A $490,187 490,187 $ 1,781 1,781
Class R-5 98,908 98,908 40 40
Total net increase
(decrease) $589,095 589,095 $ 1,821 1,821
Share class Repurchases(1) Net (decrease) increase
Amount Shares Amount Shares
Six months ended March 31, 2005
Class A $ (228,863) (228,863) $ (22,515) (22,515)
Class R-5 (42,090) (42,090) (141) (141)
Total net increase
(decrease) $ (270,953) (270,953) $ (22,656) (22,656)
Year ended September 30, 2004
Class A $ (427,693) (427,693) $ 64,275 64,275
Class R-5 (87,436) (87,436) 11,512 11,512
Total net increase
(decrease) $ (515,129) (515,129) $ 75,787 75,787
(1) 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
six months ended March 31, 2005, the custodian fee of $9,000, shown on the
accompanying financial statements, includes $5,000 that was offset by this
reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net
beginning investment investment
of period Income(2) income
Class A:
Six months ended 3/31/2005 (4) $1.00 $.006 $(.006)
Year ended 9/30/2004 1.00 .005 (.005)
Year ended 9/30/2003 1.00 .006 (.006)
Year ended 9/30/2002 1.00 .010 (.010)
Year ended 9/30/2001 1.00 .029 (.029)
Year ended 9/30/2000 1.00 .032 (.032)
Class R-5:
Six months ended 3/31/2005 (4) 1.00 .006 (.006)
Year ended 9/30/2004 1.00 .005 (.005)
Year ended 9/30/2003 1.00 .005 (.005)
Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002)
Net asset Net assets,
value, end Total end of period
of period return (in millions)
Class A:
Six months ended 3/31/2005 (4) $1.00 .61% $395
Year ended 9/30/2004 1.00 .49 418
Year ended 9/30/2003 1.00 .57 353
Year ended 9/30/2002 1.00 1.05 341
Year ended 9/30/2001 1.00 2.92 319
Year ended 9/30/2000 1.00 3.29 276
Class R-5:
Six months ended 3/31/2005 (4) 1.00 .60 21
Year ended 9/30/2004 1.00 .45 21
Year ended 9/30/2003 1.00 .54 10
Period from 7/15/2002 to 9/30/2002 1.00 .17 10
Ratio of expenses Ratio of expenses
to average to average Ratio of
net assets net assets net income
before after to average
waivers waivers(3) net assets
Class A:
Six months ended 3/31/2005 (4) .55% (5) .53% (5) 1.22% (5)
Year ended 9/30/2004 .53 .53 .49
Year ended 9/30/2003 .55 .55 .57
Year ended 9/30/2002 .54 .54 1.04
Year ended 9/30/2001 .52 .52 2.86
Year ended 9/30/2000 .64 .64 3.23
Class R-5:
Six months ended 3/31/2005 (4) .58 (5) .56 (5) 1.20 (5)
Year ended 9/30/2004 .57 .57 .47
Year ended 9/30/2003 .58 .58 .55
Period from 7/15/2002 to 9/30/2002 .12 .12 .17
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Based on average shares outstanding.
(3) The ratios in this column reflect the impact, if any, of certain waivers
from CRMC. During some of the periods shown, CRMC reduced fees for
investment advisory services for all share classes.
(4) Unaudited.
(5) Annualized.
See Notes to Financial Statements
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (October
1, 2004 through March 31, 2005).
ACTUAL EXPENSES:
The first line of each share class in the table on the next page provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses paid during period" to estimate the expenses you paid on your account
during this period. There are some account fees that are charged to certain
types of accounts, such as Individual Retirement Accounts (generally, a $10 fee
is charged to set up the account and an additional $10 fee is charged to the
account annually) that would increase the amount of expenses paid on your
account. In addition, retirement plan participants may be subject to certain
fees charged by the plan sponsor. You can estimate the impact of these fees by
adding the amount of the fees to the total estimated expenses you paid on your
account during the period as calculated above. In addition, your ending account
value would also be lower by the amount of these fees.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table on the next page provides
information about hypothetical account values and hypothetical expenses based on
the actual expense ratio for the share class and an assumed rate of return of
5.00% per year before expenses, which is not the actual return of the share
class. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the fund and
other funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor.
You can estimate the impact of these fees by adding the amount of the fees to
the total estimated expenses you paid on your account during the period as
calculated on the previous page. In addition, your ending account value would
also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning Ending Expenses
account account paid Annualized
value value during expense
10/01/2004 3/31/2005 period(1) ratio
Class A -- actual return 1,000.00 $1,006.09 $2.65 .53%
Class A -- assumed 5% return 1,000.00 1,022.29 2.67 .53
Class R-5 -- actual return 1,000.00 1,005.95 2.80 .56
Class R-5 -- assumed 5% return 1,000.00 1,022.14 2.82 .56
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (182), and divided by 365 (to reflect the one-half year period).
OFFICES OF THE FUNDS 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 REGISTERED PUBLIC ACCOUNTING FIRM
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, Class F and Class 529 shares. CMTA
classes 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 classes B, C and F shares
are subject to additional annualized 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. Classes B, C and F shares are not
available to certain employer-sponsored retirement plans. See the CMTA
prospectus for further details.
INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES
AND EXPENSES OF THE AMERICAN FUNDS AND COLLEGEAMERICA. THIS AND OTHER IMPORTANT
INFORMATION IS CONTAINED IN THE FUNDS' PROSPECTUS AND THE COLLEGEAMERICA PROGRAM
DESCRIPTION, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISER AND SHOULD BE
READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY (AFS) AT 800/421-0180 OR VISIT THE AMERICAN FUNDS WEBSITE AT
AMERICANFUNDS.COM.
"American Funds Proxy Voting Guidelines" -- which describes how we vote proxies
relating to portfolio securities -- is available free of charge on the U.S.
Securities and Exchange Commission (SEC) website at www.sec.gov, on the American
Funds website or upon request by calling AFS. The funds' proxy voting records
for the 12 months ended June 30, 2004, are also available on the SEC and
American Funds websites.
The Cash Management Trust of America, The U.S. Treasury Money Fund of America
and The Tax-Exempt Money Fund of America file a complete list of their March 31,
2005, portfolio holdings with the SEC for the first and third quarters of each
fiscal year on Form N-Q. These forms are available free of charge on the SEC
website or upon request by calling AFS. You may also review or, for a fee, copy
the forms at the SEC's Public Reference Room in Washington, D.C. (800/SEC-0330).
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 June 30, 2005, 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 30 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. More than half 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
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
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
Capital Income Builder(R)
The Income Fund of America(R)
o BALANCED FUND
American Balanced Fund(R)
o BOND FUNDS
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
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. MFGESR-960-0505P
Litho in USA AGD/INS/8090-S1942
Printed on recycled paper
ITEM 2 - Code of Ethics
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 3 - Audit Committee Financial Expert
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 4 - Principal Accountant Fees and Services
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable.
ITEM 6 - Schedule of Investments
Not applicable, insofar as the schedule is included as part of the report to
shareholders filed under Item 1 of this Form
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Registrant's Board of Trustees since the Registrant
last submitted a proxy statement to its shareholders. The procedures are as
follows. The Registrant has a Nominating and Governance Committee comprised
solely of persons who are not considered ``interested persons'' of the
Registrant within the meaning of the Investment Company Act of 1940, as amended.
The committee periodically reviews such issues as the Board's composition,
responsibilities, committees, compensation and other relevant issues, and
recommends any appropriate changes to the full Board of Trustees. While the
committee normally is able to identify from its own resources an ample number of
qualified candidates, it will consider shareholder suggestions of persons to be
considered as nominees to fill future vacancies on the Board. Such suggestions
must be sent in writing to the Nominating and Governance Committee of the
Registrant, c/o the Registrant's Secretary, and must be accompanied by complete
biographical and occupational data on the prospective nominee, along with a
written consent of the prospective nominee for consideration of his or her name
by the Nominating and Governance Committee.
ITEM 11 - Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal Financial
Officer have concluded, based on their evaluation of the Registrant's
disclosure controls and procedures (as such term is defined in Rule 30a-3
under the Investment Company Act of 1940), that such controls and
procedures are adequate and reasonably designed to achieve the purposes
described in paragraph (c) of such rule.
(b) There were no changes in the Registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the Registrant's second fiscal quarter of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control
over financial reporting.
ITEM 12 - Exhibits
(a) (1) The Code of Ethics - not applicable for filing of Semiannual Reports to
Shareholders.
(a) (2) The certifications required by Rule 30a-2 of the Investment Company Act
of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of
2002 are attached as exhibits hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE CASH MANAGEMENT TRUST OF AMERICA
By /s/ Abner D. Goldstine
- -------------------------------------
Abner D. Goldstine, President and PEO
Date: June 8, 2005
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: June 8, 2005
By /s/ Susi M. Silverman
- ------------------------------------
Susi M. Silverman, Treasurer and PFO
Date: June 8, 2005