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: 811-6235
The U.S. Treasury Money Fund 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, 2004
Date of reporting period: March 31, 2004
Julie F. Williams
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
Robert E. Carlson, Esq.
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[logo - American Funds(R)]
The right choice for the long term(R)
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
[front cover: photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at
computer screen]
Semi-annual report for the six months ended March 31, 2004
THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in high-quality, short-term money market instruments.
THE U.S. TREASURY MONEY FUND OF AMERICA SM seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
THE TAX-EXEMPT MONEY FUND OF AMERICA SM seeks to provide income free from
federal taxes, while preserving capital and maintaining liquidity, through
investments in high-quality, municipal securities with effective maturities of
one year or less.
These money market funds are three of the 29 American Funds, the nation's
third-largest mutual fund family. For more than seven decades, Capital Research
and Management Company, SM the American Funds adviser, has invested with a
long-term focus based on thorough research and attention to risk.
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.
FIGURES SHOWN ON THE OPPOSITE PAGE ARE PAST RESULTS FOR CLASS A SHARES AND ARE
NOT PREDICTIVE OF RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE
LOWER OR HIGHER THAN THOSE SHOWN. SHARE PRICES AND RETURNS WILL VARY, SO
INVESTORS MAY LOSE MONEY. FOR THE MOST CURRENT INFORMATION AND MONTH-END
RESULTS, VISIT AMERICANFUNDS.COM. ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE
OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING
IN THE FUNDS.
Investing for short periods makes losses more likely. Investments are not
FDIC-insured, nor are they deposits of or guaranteed by a bank or any other
entity. Income from The Tax-Exempt Money Fund of America may be subject to state
or local income taxes and/or federal alternative minimum taxes. Certain other
income may be taxable.
FELLOW SHAREHOLDERS:
When the funds' fiscal year began six months ago, short-term interest rates were
at a 45-year low. While a rise in short-term rates typically accompanies an
improving economy, short-term rates have remained at the same low level since
June 2003, despite improvement in the economy. The very limited income that each
of the money funds generated was outpaced by the 1.19% rate of inflation as
measured by the Consumer Price Index. Of course, each of the American Funds
money market funds maintained a stable net asset value. Rates may well rise in
the months ahead if the economy continues to grow at its current pace.
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 0.35% (0.70%
annualized) with dividends reinvested for the six-month period ended March 31,
2004.
THE U.S. TREASURY MONEY FUND OF AMERICA generated a six-month income return of
0.14% (0.28% annualized) with dividends reinvested. Because all of the fund's
earnings are derived from investments in U.S. Treasury securities, the income
paid by the fund is exempt from state and local taxes.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return
of 0.20% (0.41% annualized) with dividends reinvested. This return is equivalent
to a return of 0.31% (0.63% annualized) for investors in the 35.0% tax bracket.
A portion of this return may also be exempt from some state and local taxes.
ECONOMY ON THE MEND
When we last reported to you in September 2003, the U.S. economy appeared to be
on a clear path toward recovery, but with little job creation. In October, the
Federal Reserve Board announced plans to keep short-term interest rates low for
a considerable period to help bolster the recovery. Despite the increased
strength of the U.S. economy over the six-month period, job creation remained
sluggish until very recently. Inflation has also remained at a moderate level,
allowing the Federal Reserve to maintain short-term interest rates at historic
lows.
In March, the economy added 337,000 jobs -- the most in nearly four years. This
raised hopes that the labor market is turning a crucial corner. As the economy
continues to expand, a labor market rebound and concerns about the prospect of
inflation may lead to higher interest rates. On April 20, after the close of the
funds' reporting period, Federal Reserve Chairman Alan Greenspan helped shape
market expectations when he announced the "federal funds rate must rise at some
point to prevent pressures on price inflation from eventually emerging."
[Begin Sidebar]
SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX
For the five years ended March 31, 2004
(plotted monthly)
[begin line chart]
<s> <c> <c> <c> <c> <c>
Consumer Federal Tax-Exempt Cash U.S. Treasury
Price Index Funds Rate Money Fund Management Trust Money Fund
(inflation) (target rate) of America (2) of America of America (3)
Mar-99 1.73 4.75 3.52 4.23 3.83
Apr-99 2.28 4.75 3.89 4.26 3.75
May-99 2.09 4.75 3.92 4.34 3.82
Jun-99 1.96 5.00 4.00 4.35 3.79
Jul-99 2.14 5.00 3.88 4.57 4.00
Aug-99 2.26 5.25 4.06 4.75 4.24
Sep-99 2.63 5.25 4.46 4.61 4.32
Oct-99 2.56 5.25 4.40 4.95 4.11
Nov-99 2.62 5.50 4.65 5.00 4.49
Dec-99 2.68 5.50 5.26 5.32 4.47
Jan-00 2.74 5.50 4.17 5.37 4.58
Feb-00 3.22 5.75 4.17 5.20 4.48
Mar-00 3.76 6.00 4.49 5.46 5.08
Apr-00 3.07 6.00 5.35 5.48 5.07
May-00 3.19 6.50 5.45 5.65 5.05
Jun-00 3.73 6.50 5.82 6.06 5.20
Jul-00 3.66 6.50 5.40 5.99 5.21
Aug-00 3.41 6.50 5.55 6.04 5.60
Sep-00 3.45 6.50 5.89 6.06 5.64
Oct-00 3.45 6.50 5.48 6.11 5.44
Nov-00 3.45 6.50 5.85 5.97 5.36
Dec-00 3.39 6.50 5.68 5.94 5.12
Jan-01 3.73 5.50 4.55 5.39 5.15
Feb-01 3.53 5.50 3.98 5.01 4.71
Mar-01 2.92 5.00 4.48 4.67 4.37
Apr-01 3.27 4.50 4.69 4.24 3.65
May-01 3.62 4.00 4.29 3.67 3.42
Jun-01 3.25 3.75 3.88 3.28 3.17
Jul-01 2.72 3.75 3.45 3.19 2.89
Aug-01 2.72 3.50 3.15 3.09 2.96
Sep-01 2.65 3.00 2.89 2.71 2.59
Oct-01 2.13 2.50 2.55 1.98 2.05
Nov-01 1.90 2.00 2.20 1.65 1.60
Dec-01 1.55 1.75 1.83 1.33 1.25
Jan-02 1.14 1.75 1.35 1.17 1.13
Feb-02 1.14 1.75 1.32 1.14 1.10
Mar-02 1.48 1.75 1.25 1.17 1.14
Apr-02 1.64 1.75 1.68 1.25 1.16
May-02 1.18 1.75 1.71 1.26 1.12
Jun-02 1.07 1.75 1.45 1.13 1.09
Jul-02 1.46 1.75 1.29 1.16 1.06
Aug-02 1.80 1.75 1.25 1.15 1.13
Sep-02 1.51 1.75 1.46 1.15 1.10
Oct-02 2.03 1.75 1.52 1.21 1.08
Nov-02 2.20 1.25 1.35 1.00 0.87
Dec-02 2.38 1.25 1.04 0.78 0.71
Jan-03 2.60 1.25 0.79 0.77 0.59
Feb-03 2.98 1.25 0.80 0.89 0.58
Mar-03 3.02 1.25 0.61 0.99 0.58
Apr-03 2.22 1.25 0.88 0.85 0.57
May-03 2.06 1.25 0.88 0.88 0.55
Jun-03 2.11 1.00 0.91 0.68 0.46
Jul-03 2.11 1.00 0.63 0.84 0.42
Aug-03 2.16 1.00 0.51 1.05 0.38
Sep-03 2.32 1.00 0.63 1.06 0.42
Oct-03 2.04 1.00 0.60 0.89 0.37
Nov-03 1.77 1.00 0.68 0.77 0.29
Dec-03 1.88 1.00 0.72 0.73 0.25
Jan-04 1.93 1.00 0.45 0.59 0.17
Feb-04 1.69 1.00 0.85 0.63 0.30
Mar-04 1.87 1.00 0.66 0.60 0.30
[end line chart]
(1) Equivalent to Securities and Exchange Commission yield.
(2) Represents the fund's taxable equivalent yield calculated at the 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.
YOUR FUNDS' SEVEN-DAY YIELDS AS OF MARCH 31, 2004:
The Cash Management Trust of America +0.60%
The U.S. Treasury Money Fund of America +0.30
The Tax-Exempt Money Fund of America +0.43
The Tax-Exempt Money Fund of America (taxable equivalent yield) (2) +0.66
[End Sidebar]
THE IMPACT ON MONEY FUNDS
In total, the Federal Reserve lowered the key federal funds rate 13 times since
2001. The yields on short-term investments are strongly influenced by this
benchmark lending rate. The chart on the preceding page demonstrates the
interplay between the federal funds rate and the yields of the American Funds
money market funds.
THE FUNDS' OBJECTIVE
Our foremost objective in managing the money market funds is to protect our
shareholders' investments, while providing income that is consistent with the
market yields on short-term investments. Because of the stability and
convenience that they provide, the American Funds money market funds can play a
valuable role in your overall investment plan. Added to a portfolio that
includes stock and bond funds, money market funds can serve as a temporary
resting place for your assets between longer term investments and as a way to
earn reasonable income on a cash reserve portion of your portfolio over an
economic cycle.
Thank you for choosing 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 goals.
Cordially,
/s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
May 14, 2004
Figures shown on the opposite page are past results for Class A shares and are
not predictive of results in future periods. Current and future results may be
lower or higher than those shown. Share prices and returns will vary, so
investors may lose money.
For current information about the fund, visit americanfunds.com
THE CASH MANAGEMENT TRUST OF AMERICA
INVESTMENT PORTFOLIO
March 31, 2004 unaudited
PRINCIPAL MARKET
YIELD AT AMOUNT VALUE
SHORT-TERM SECURITIES - 100.19% ACQUISTION (000) (000)
CERTIFICATES OF DEPOSIT - 2.41%
State Street Bank & Trust
May 4, 2004 1.03% $ 50,000 $ 50,000
Wells Fargo Bank, NA
April 19, 2004 1.02 50,000 50,000
May 6, 2004 1.02 50,000 50,000
May 11, 2004 1.02 50,000 50,000
Total certificates of deposit 200,000
COMMERCIAL PAPER - 82.12%
Abbey National North America LLC
April 6, 2004 1.01 50,000 49,992
April 13, 2004 1.02 50,000 49,982
AIG Funding Inc.
April 12, 2004 1.00 120,000 119,960
April 16, 2004 0.98 30,000 29,987
American Express Credit Corp.
April 14, 2004 1.01 75,000 74,971
May 26, 2004 1.01 75,000 74,883
American Honda Finance Corp.
May 4, 2004 1.02 50,000 49,952
May 11, 2004 1.02 50,000 49,943
May 24, 2004 1.02 50,000 49,925
Amsterdam Funding Corp. (1)
April 26, 2004 1.02 50,000 49,963
April 29, 2004 1.02 100,000 99,918
Anheuser-Busch Cos. Inc. (1)
April 14, 2004 0.98 25,000 24,990
May 5, 2004 0.99 25,000 24,976
ANZ (Delaware) Inc.
April 5, 2004 1.02 50,000 49,993
Archer Daniels Midland Co. (1)
April 20, 2004 1.02 40,000 39,978
Bank of Ireland (1)
April 2, 2004 1.02 100,000 99,994
Bank of Montreal
June 1, 2004 1.02 25,000 24,955
Bank of Nova Scotia
April 7, 2004 1.01 50,000 49,990
Barclays U.S. Funding Corp.
May 13, 2004 1.01 50,000 49,941
BMW U.S. Capital Corp.
April 26, 2004 1.00 50,000 49,964
BNP Paribas Finance Inc.
May 11, 2004 1.02 50,000 49,943
CAFCO, LLC (1)
April 16, 2004 1.03 75,000 74,966
April 23, 2004 1.02 75,000 74,951
Canada Government
April 15, 2004 0.97 85,000 84,966
Canadian Imperial Holdings Inc.
May 10, 2004 1.01 50,000 49,944
May 24, 2004 1.01 50,000 49,924
May 28, 2004 1.01 25,000 24,959
Canadian Wheat Board
April 6, 2004 0.98 20,000 19,997
April 8, 2004 0.98 20,000 19,996
April 15, 2004 0.97 30,000 29,988
Caterpillar Financial Services Corp.
April 6, 2004 0.99 60,000 59,990
April 21, 2004 0.99 20,000 19,988
CDC Commercial Paper Corp. (1)
May 26, 2004 1.01 100,000 99,845
ChevronTexaco Funding Corp.
April 14, 2004 1.00 75,000 74,971
April 23, 2004 0.99 75,000 74,953
Clipper Receivables Company, LLC (1)
April 1, 2004 1.03 50,000 49,999
April 20, 2004 1.03 50,000 49,972
Clorox Co.
April 13, 2004 0.98 35,000 34,988
Coca-Cola Co.
April 21, 2004 0.99 150,000 149,913
Danske Corp.
April 14, 2004 1.01 50,000 49,980
April 14, 2004 1.02 25,000 24,990
May 14, 2004 1.01 50,000 49,938
Dexia Delaware LLC
April 1, 2004 1.02 100,000 99,997
April 15, 2004 1.02 50,000 49,979
Diageo Capital PLC (1)
April 6, 2004 1.02 50,000 49,992
DuPont (E.I.) de Nemours & Co.
April 20, 2004 1.00 50,000 49,972
April 29, 2004 1.00 100,000 99,918
Eli Lilly and Co. (1)
May 7, 2004 0.98 25,000 24,975
Exxon Asset Management Co. (1)
April 8, 2004 0.98 50,000 49,989
April 23, 2004 0.98 50,000 49,969
April 27, 2004 0.98 50,000 49,963
FCAR Owner Trust I
April 16, 2004 1.03 100,000 99,954
Gannett Co. (1)
April 5, 2004 0.99 75,000 74,990
April 23, 2004 0.98 75,000 74,953
General Electric Capital Corp.
May 5, 2004 1.02 150,000 149,852
GlaxoSmithKline Finance PLC
April 5, 2004 1.02 75,000 74,990
April 19, 2004 1.01 25,000 24,987
May 17, 2004 1.00 25,000 24,968
Harvard University
May 17, 2004 0.97 25,000 24,968
HBOS Treasury Services PLC
May 17, 2004 1.02 100,000 99,867
Household Finance Corp.
April 5, 2004 1.03 25,000 24,996
IBM Credit Corp.
April 21, 2004 0.98 100,000 99,943
ING (U.S.) Funding LLC
April 8, 2004 1.02 50,000 49,989
April 26, 2004 1.02 50,000 49,963
KFW International Finance Inc. (1)
April 7, 2004 1.00 50,000 49,991
May 11, 2004 1.01 100,000 99,889
Lloyds TSB Bank PLC
April 7, 2004 1.01 50,000 49,990
May 3, 2004 1.00 50,000 49,954
Medtronic Inc. (1)
April 7, 2004 0.98 25,000 24,995
May 12, 2004 0.99 25,000 24,971
Nestle Capital Corp. (1)
May 24, 2004 1.00 75,000 74,887
NetJets Inc. (1)
April 13, 2004 1.01 30,000 29,989
May 24, 2004 1.00 40,000 39,940
New Center Asset Trust
April 5, 2004 1.02 30,000 29,996
April 28, 2004 1.01 70,000 69,944
Old Line Funding, LLC (1)
May 3, 2004 1.03 75,000 74,931
May 13, 2004 1.02 35,000 34,957
May 17, 2004 1.03 40,000 39,947
Park Avenue Receivables Company, LLC (1)
April 8, 2004 1.02 50,000 49,989
April 13, 2004 1.03 50,000 49,981
April 21, 2004 1.03 50,000 49,970
Pfizer Inc. (1)
April 14, 2004 0.99 75,000 74,971
April 19, 2004 0.99 50,000 49,974
May 11, 2004 1.00 25,000 24,972
Procter & Gamble Co. (1)
April 12, 2004 1.01 25,000 24,992
April 13, 2004 1.00 50,000 49,982
Rabobank USA Financial Corp.
May 14, 2004 1.00 100,000 99,878
Receivables Capital Company, LLC (1)
April 7, 2004 1.02 50,000 49,990
April 13, 2004 1.02 50,000 49,982
April 22, 2004 1.03 20,000 19,987
April 28, 2004 1.02 30,000 29,976
Royal Bank of Scotland PLC
April 12, 2004 1.02 75,000 74,975
May 7, 2004 1.02 50,000 49,948
Shell Finance (U.K.) PLC
April 2, 2004 1.01 25,000 24,999
April 8, 2004 (1) 1.01 25,000 24,994
April 22, 2004 1.01 25,000 24,985
Siemens Capital Co. LLC
April 27, 2004 1.01 50,000 49,962
Societe Generale N.A. Inc.
April 21, 2004 1.02 50,000 49,971
May 5, 2004 1.02 75,000 74,926
Spintab AB (Swedmortgage)
April 1, 2004 1.03 50,000 49,999
April 2, 2004 1.02 50,000 49,997
Svenska Handelsbanken Inc.
April 6, 2004 1.03 75,000 74,987
May 26, 2004 1.02 75,000 74,881
Three Pillars Funding, LLC (1)
April 15, 2004 1.03 50,000 49,979
April 22, 2004 1.03 35,000 34,978
April 26, 2004 1.03 65,000 64,952
Toronto-Dominion Holdings USA Inc.
April 12, 2004 1.02 50,000 49,984
May 21, 2004 1.02 75,000 74,894
Toyota Motor Credit Corp.
April 5, 2004 1.03 50,000 49,993
April 19, 2004 1.03 25,000 24,987
Triple-A One Funding Corp. (1)
April 13, 2004 1.02 35,000 34,987
May 14, 2004 1.02 115,000 114,856
UBS Finance (Delaware) LLC
April 22, 2004 1.00 100,000 99,939
Unilever Capital Corp. (1)
April 27, 2004 0.98 30,000 29,978
May 4, 2004 0.99 20,000 19,981
United Parcel Service Inc.
April 2, 2004 0.96 25,000 24,999
April 13, 2004 0.96 25,000 24,991
Variable Funding Capital Corp. (1)
April 2, 2004 1.03 50,000 49,997
April 15, 2004 1.02 50,000 49,979
April 20, 2004 1.02 50,000 49,972
Verizon Network Funding Co.
April 7, 2004 0.99 50,000 49,990
April 26, 2004 0.99 25,000 24,982
Wal-Mart Stores Inc. (1)
April 6, 2004 0.99 50,000 49,992
April 19, 2004 0.98 50,000 49,974
May 18, 2004 0.98 50,000 49,935
Westpac Capital Corp.
April 5, 2004 1.03 25,000 24,996
May 6, 2004 1.02 40,000 39,960
Total commercial paper 6,815,516
FEDERAL AGENCY DISCOUNT NOTES - 9.03%
Fannie Mae
May 12, 2004 0.98 150,000 149,829
Federal Farm Credit Banks
April 16, 2004 0.97 25,000 24,989
May 7, 2004 0.95 55,000 54,946
Federal Home Loan Bank
April 7, 2004 1.00 25,000 24,995
April 16, 2004 0.99 50,000 49,978
May 7, 2004 0.98 50,000 49,949
May 21, 2004 0.98 25,000 24,965
Freddie Mac
April 1, 2004 0.99 15,000 15,000
May 4, 2004 0.99 65,000 64,939
May 11, 2004 0.98 50,000 49,944
International Bank for Reconstruction and Development
April 6, 2004 0.96 50,000 49,992
April 12, 2004 0.96 50,000 49,984
April 16, 2004 0.98 100,000 99,957
Sallie Mae (2)
May 20, 2004 1.01 25,000 24,996
June 17, 2004 1.02 15,000 15,000
Total federal agency discount notes 749,463
U.S. TREASURIES - 6.63%
U.S. Treasury Bills
April 1, 2004 0.97 100,000 99,997
April 8, 2004 0.97 100,000 99,979
April 15, 2004 0.92 225,000 224,919
April 22, 2004 0.97 100,000 99,942
April 29, 2004 0.96 25,000 24,980
Total U.S. Treasuries 549,817
TOTAL INVESTMENT SECURITIES (cost: $8,314,776,000) 8,314,796
Other assets less liabilities -15,814
NET ASSETS $8,298,982
(1) Restricted security that can be resold only to institutional investors. In
practice, this security is as liquid as unrestricted securities in the
portfolio.
(2) Coupon rate may change periodically; the date of the next scheduled coupon
rate change is considered to be the maturity date.
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2004
(dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market
(cost: $8,314,776) $8,314,796
Cash 3,048
Receivables for:
Sales of fund's shares $41,211
Interest 304 $41,515
Other assets 4
8,359,363
LIABILITIES:
Payables for:
Repurchases of fund's shares 56,586
Dividends on fund's shares 98
Investment advisory services 1,128
Services provided by affiliates 2,474
Deferred Trustees' compensation 38
Other fees and expenses 57 60,381
NET ASSETS AT MARCH 31, 2004 $8,298,982
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $8,298,962
Net unrealized appreciation 20
NET ASSETS AT MARCH 31, 2004 $8,298,982
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES
AUTHORIZED
SHARES NET ASSET
NET ASSETS OUTSTANDING VALUE PER SHARE
Class A $7,406,236 7,406,218 $1.00
Class B 134,667 134,666 1.00
Class C 70,843 70,842 1.00
Class F 8,402 8,402 1.00
Class 529-A 100,560 100,560 1.00
Class 529-B 1,155 1,155 1.00
Class 529-C 4,048 4,048 1.00
Class 529-E 5,048 5,048 1.00
Class 529-F 2,567 2,567 1.00
Class R-1 9,433 9,433 1.00
Class R-2 280,849 280,849 1.00
Class R-3 181,009 181,009 1.00
Class R-4 33,191 33,191 1.00
Class R-5 60,974 60,974 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS unaudited
for the six months ended March 31, 2004 dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $43,435
Fees and expenses:
Investment advisory services $11,765
Distribution services 5,456
Transfer agent services 6,490
Administrative services 1,399
Reports to shareholders 69
Registration statement and prospectus 227
Postage, stationery and supplies 1,159
Trustees' compensation 23
Auditing and legal 61
Custodian 106
State and local taxes 13
Other 67
Total expenses before reimbursement 26,835
Reimbursement of expenses 11,028 15,807
Net investment income 27,628
NET UNREALIZED APPRECIATION ON INVESTMENTS 39
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $27,667
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months ended Year ended
March 31, 2004* September 30, 2003
OPERATIONS:
Net investment income $27,628 $91,848
Net unrealized appreciation (depreciation) on investments 39 (4)
Net increase in net assets
resulting from operations 27,667 91,844
DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS
FROM NET INVESTMENT INCOME (27,628) (91,828)
CAPITAL SHARE TRANSACTIONS (431,638) 32,809
TOTAL (DECREASE) INCREASE IN NET ASSETS (431,599) 32,825
NET ASSETS:
Beginning of period 8,730,581 8,697,756
End of period $8,298,982 $8,730,581
*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 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:
- ------------------------------------------------------------------------------------------------------------
INITIAL SALES CONTINGENT DEFERRED SALES
SHARE CLASS CHARGE CHARGE UPON REDEMPTION CONVERSION FEATURE
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
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
six years of purchase and 529-A, respectively,
after eight years
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Class C None 1% for redemptions within Class C converts to Class F
one year of purchase after 10 years
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Class 529-C None 1% for redemptions within None
one year of purchase
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Class 529-E None None None
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Classes F and 529-F None None None
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Classes R-1, R-2, R-3, None None None
R-4 and R-5
- ------------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. Each share class has identical voting rights, except for the
exclusive right to vote on matters affecting only its class. Share classes have
different fees and expenses ("class-specific fees and expenses"), primarily due
to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
NET ASSET VALUE - The fund values its shares in accordance with Securities
and Exchange Commission ("SEC") rules, using the penny-rounding method,
which permits the fund to maintain a constant net asset value of $1.00 per
share.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from an independent pricing service, when such prices are available.
However, where the investment adviser deems it appropriate, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates
market value. The ability of the issuers of the debt securities held by the
fund to meet their obligations may be affected by economic developments in
a specific industry, state or region. Securities and other assets for which
representative market quotations are not readily available are fair valued
as determined in good faith by authority of the fund's Board of Trustees.
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) and unrealized gains and losses are allocated daily
among the various share classes based on their relative net assets.
Class-specific fees and expenses, such as distribution, administrative and
shareholder services, are charged directly to the respective share class.
DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared
daily after the determination of the fund's net investment income and are
paid to shareholders monthly.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of March 31, 2004, 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, 2004, the cost of investment securities
for federal income tax purposes was $8,314,776,000.
As of March 31, 2004, the components of distributable earnings on a tax basis
were as follows:
(dollars in thousands)
Undistributed net investment income $ 134
Gross unrealized appreciation on investment securities 29
Gross unrealized depreciation on investment securities (9)
Tax basis distributions paid or accrued to shareholders from ordinary income
were as follows (dollars in thousands):
SIX MONTHS ENDED YEAR ENDED
SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003
Class A $ 26,848 $ 90,058
Class B 73 252
Class C 34 127
Class F 9 67
Class 529-A 189 425
Class 529-B -* 1
Class 529-C 2 3
Class 529-E 2 7
Class 529-F 2 4
Class R-1 4 5
Class R-2 125 139
Class R-3 81 167
Class R-4 51 96
Class R-5 208 477
Total $ 27,628 $ 91,828
*Amount less than one thousand.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.320% on the first $1 billion
of daily net assets and decreasing to 0.270% on such assets in excess of $2
billion. For the six months ended March 31, 2004, the investment advisory
services fee was $11,765,000, which was equivalent to an annualized rate of
0.278% of average daily net assets.
The Investment Advisory and Service Agreement also provides that CRMC will
reimburse the fund's expenses to the extent that annual operating expenses for
Class A shares exceed 25% of gross income. Expenses related to interest, taxes,
brokerage commissions and extraordinary items are not subject to these
limitations. Low income levels, caused by the decline in short-term interest
rates, have resulted in expenses exceeding this limit. During the six months
ended March 31, 2004, these reimbursements totaled $9,449,000. It is likely that
expenses will continue to be reimbursed while short-term interest rates remain
low. The amount of reimbursement during any period will vary in accordance with
the fund's gross income and expense levels.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all
share classes, except Class R-5. Under the plans, the Board of Trustees
approves certain categories of expenses that are used to finance activities
primarily intended to sell fund shares. The plans provide for annual
expenses, based on a percentage of average daily net assets, ranging from
0.15% to 1.00% as noted below. In some cases, the Board of Trustees has
approved expense amounts lower than plan limits. 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 below.
ADMINISTRATIVE SERVICES - The fund has an administrative services agreement
with CRMC to provide transfer agent and other related shareholder services
for all classes of shares other than classes A and B. Each relevant class
pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its
respective average daily net assets. Each relevant class also pays AFS
additional amounts for certain transfer agent services. CRMC and AFS may
use these fees to compensate third parties for performing these services.
During the start-up period for classes R-1, R-2 and R-3, CRMC has
voluntarily agreed to pay a portion of these fees. For the six months ended
March 31, 2004, the total fees paid by CRMC were $357,000. Each 529 share
class is subject to an additional annual administrative services fee of
0.10% of its respective average daily net assets; this fee is payable to
the Commonwealth of Virginia for the maintenance of the CollegeAmerica
plan. Although these amounts are included with administrative services fees
in the accompanying financial statements, the Commonwealth of Virginia is
not considered a related party. Administrative services fees are presented
gross of any payments made by CRMC.
Expenses under the agreements described above for the six months ended
March 31, 2004, were as follows (dollars in thousands):
--------------------------------------------------------------------------------------------------------------
ADMINISTRATIVE SERVICES
------------------------------------------------------------
COMMONWEALTH OF
CRMC VIRGINIA
DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE TRANSFER AGENT ADMINISTRATIVE
SHARE CLASS SERVICES SERVICES SERVICES SERVICES SERVICES
--------------------------------------------------------------------------------------------------------------
Class A $2,992 $6,408 Not applicable Not applicable Not applicable
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class B 644 82 Not applicable Not applicable Not applicable
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class C 331 Included $50 $12 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class F 7 Included 4 1 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-A 23 Included 71 19 $48
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-B 5 Included 1 -* 1
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-C 18 Included 3 1 2
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-E 12 Included 3 1 2
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-F 3 Included 2 -* 1
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-1 42 Included 6 5 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-2 939 Included 188 663 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-3 404 Included 121 133 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-4 36 Included 22 1 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-5 Not applicable Included 32 6 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Total $5,456 $6,490 $503 $842 $54
----------------==============================================================================================
* Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay a
portion of the class-specific fees and expenses. For the six months ended
March 31, 2004, the total fees paid by CRMC for classes B, C, 529-B, 529-C,
529-E, R-1, R-2 and R-3 were $1,222,000.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to
defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease in the value
of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees received any compensation directly from the fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
REINVESTMENTS OF NET (DECREASE)
SALES(1) DIVIDENDS REPURCHASES(1) INCREASE
SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED MARCH 31, 2004
Class A $6,315,723 6,315,723 $25,800 25,800 $ (6,844,989) (6,844,989) $(503,466) (503,466)
Class B 52,183 52,183 66 66 (90,508) (90,508) (38,259) (38,259)
Class C 68,692 68,692 30 30 (86,600) (86,600) (17,878) (17,878)
Class F 9,300 9,300 7 7 (8,247) (8,247) 1,060 1,060
Class 529-A 56,250 56,250 186 186 (45,173) (45,173) 11,263 11,263
Class 529-B 522 522 -* -* (449) (449) 73 73
Class 529-C 1,777 1,777 2 2 (1,188) (1,188) 591 591
Class 529-E 2,542 2,542 2 2 (2,110) (2,110) 434 434
Class 529-F 1,662 1,662 2 2 (1,415) (1,415) 249 249
Class R-1 8,992 8,992 4 4 (7,243) (7,243) 1,753 1,753
Class R-2 510,939 510,939 117 117 (435,835) (435,835) 75,221 75,221
Class R-3 301,749 301,749 77 77 (259,010) (259,010) 42,816 42,816
Class R-4 40,923 40,923 51 51 (33,939) (33,939) 7,035 7,035
Class R-5 59,885 59,885 200 200 (72,615) (72,615) (12,530) (12,530)
Total net increase
(decrease) $7,431,139 7,431,139 $26,544 26,544 $ (7,889,321) (7,889,321) $(431,638) (431,638)
YEAR ENDED SEPTEMBER 30, 2003
Class A $15,232,335 15,232,335 $86,266 86,266 $(15,714,246) (15,714,246) $(395,645) (395,645)
Class B 233,546 233,546 232 232 (218,968) (218,968) 14,810 14,810
Class C 470,206 470,206 112 112 (481,173) (481,173) (10,855) (10,855)
Class F 130,042 130,042 36 36 (133,112) (133,112) (3,034) (3,034)
Class 529-A 115,515 115,515 416 416 (60,929) (60,929) 55,002 55,002
Class 529-B 1,235 1,235 1 1 (517) (517) 719 719
Class 529-C 4,360 4,360 3 3 (1,894) (1,894) 2,469 2,469
Class 529-E 5,577 5,577 6 6 (2,336) (2,336) 3,247 3,247
Class 529-F 3,376 3,376 4 4 (1,063) (1,063) 2,317 2,317
Class R-1 17,203 17,203 5 5 (10,483) (10,483) 6,725 6,725
Class R-2 852,833 852,833 124 124 (669,787) (669,787) 183,170 183,170
Class R-3 567,375 567,375 155 155 (444,141) (444,141) 123,389 123,389
Class R-4 62,875 62,875 92 92 (37,312) (37,312) 25,655 25,655
Class R-5 116,674 116,674 447 447 (92,281) (92,281) 24,840 24,840
Total net increase
(decrease) $17,813,152 17,813,152 $87,899 87,899 $(17,868,242) (17,868,242) $ 32,809 32,809
*Amount less than one thousand.
(1) Includes exchanges between share classes of the fund.
5. RESTRICTED SECURITIES
The fund has invested in certain securities that can be resold only to
institutional investors. These securities are identified in the investment
portfolio and, in practice, are as liquid as unrestricted securities in the
portfolio. As of March 31, 2004, the total value of restricted securities was
$2,758,000, which represented 33.24% of the net assets of the fund.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
six months ended March 31, 2004, the custodian fee of $106,000 included $6,000
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
NET ASSET DIVIDENDS
VALUE, NET FROM NET NET ASSET
BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL
OF PERIOD INCOME (2) INCOME OF PERIOD RETURN (3)
CLASS A:
Six months ended 3/31/2004 (5) $1.00 $.004 (.004) $1.00 .35%
Year ended 9/30/2003 1.00 .011 (.011) 1.00 1.05
Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.35
Year ended 9/30/2001 1.00 .045 (.045) 1.00 4.63
Year ended 9/30/2000 1.00 .055 (.055) 1.00 5.66
Year ended 9/30/1999 1.00 .045 (.045) 1.00 4.59
CLASS B:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .13
Year ended 9/30/2002 1.00 .005 (.005) 1.00 .53
Year ended 9/30/2001 1.00 .037 (.037) 1.00 3.75
Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00 2.73
CLASS C:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Year ended 9/30/2002 1.00 .004 (.004) 1.00 .40
Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00 1.40
CLASS F:
Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .16
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55
Year ended 9/30/2002 1.00 .011 (.011) 1.00 1.13
Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00 1.71
CLASS 529-A:
Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .20
Year ended 9/30/2003 1.00 .007 (.007) 1.00 .66
Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00 .73
CLASS 529-B:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .09
CLASS 529-C:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .15
CLASS 529-E:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .002 (.002) 1.00 .22
Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00 .39
CLASS 529-F:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .10
Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43
Period from 9/16/2002 to 9/30/2002 1.00 - (8) - (8) 1.00 .04
CLASS R-1:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .10
CLASS R-2:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11
CLASS R-3:
Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .002 (.002) 1.00 .23
Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .22
CLASS R-4:
Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .18
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55
Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .23
CLASS R-5:
Six months ended 3/31/2004 (5) 1.00 .003 (.003) 1.00 .32
Year ended 9/30/2003 1.00 .009 (.009) 1.00 .87
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .50
RATIO OF EXPENSES RATIO OF EXPENSES RATIO OF
NET ASSETS, TO AVERAGE NET TO AVERAGE NET NET INCOME
END OF PERIOD ASSETS BEFORE ASSETS AFTER TO AVERAGE
(IN MILLIONS) REIMBURSEMENTS REIMBURSEMENTS (4) NET ASSETS
CLASS A:
Six months ended 3/31/2004 (5) $7,406 .57%(6) .25%(6) .77%
Year ended 9/30/2003 7,910 .55 .23 1.05
Year ended 9/30/2002 8,305 .59 .59 1.33
Year ended 9/30/2001 7,075 .59 .59 4.48
Year ended 9/30/2000 5,417 .61 .61 5.53
Year ended 9/30/1999 5,863 .58 .58 4.52
CLASS B:
Six months ended 3/31/2004 (5) 135 1.33 (6) .93 (6) .10
Year ended 9/30/2003 173 1.38 1.14 .14
Year ended 9/30/2002 158 1.40 1.40 .47
Year ended 9/30/2001 46 1.41 1.41 3.01
Period from 3/15/2000 to 9/30/2000 1 1.43 (6) 1.43 (6) 5.21
CLASS C:
Six months ended 3/31/2004 (5) 71 1.50 (6) .93 (6) .10
Year ended 9/30/2003 89 1.55 1.16 .12
Year ended 9/30/2002 100 1.55 1.51 .31
Period from 3/16/2001 to 9/30/2001 13 1.59 (6) 1.55 (6) 2.05
CLASS F:
Six months ended 3/31/2004 (5) 8 .73 (6) .69 (6) .33
Year ended 9/30/2003 7 .73 .73 .58
Year ended 9/30/2002 10 .77 .77 1.11
Period from 3/26/2001 to 9/30/2001 4 .80 (6) .80 (6) 3.09
CLASS 529-A:
Six months ended 3/31/2004 (5) 101 .66 (6) .63 (6) .40
Year ended 9/30/2003 89 .62 .62 .61
Period from 2/15/2002 to 9/30/2002 34 .60 (6) .60 (6) 1.16
CLASS 529-B:
Six months ended 3/31/2004 (5) 1 1.54 (6) .93 (6) .10
Year ended 9/30/2003 1 1.52 1.13 .12
Period from 6/7/2002 to 9/30/2002 - (7) .47 .47 .08
CLASS 529-C:
Six months ended 3/31/2004 (5) 4 1.63 (6) .93 (6) .10
Year ended 9/30/2003 3 1.62 1.11 .11
Period from 4/2/2002 to 9/30/2002 1 .79 .75 .12
CLASS 529-E:
Six months ended 3/31/2004 (5) 5 1.11 (6) .93 (6) .10
Year ended 9/30/2003 5 1.11 1.05 .17
Period from 3/11/2002 to 9/30/2002 1 1.09 (6) 1.09 (6) .66
CLASS 529-F:
Six months ended 3/31/2004 (5) 3 .86 (6) .83 (6) .20
Year ended 9/30/2003 2 .85 .85 .33
Period from 9/16/2002 to 9/30/2002 - (7) .03 .03 .04
CLASS R-1:
Six months ended 3/31/2004 (5) 9 1.56 (6) .93 (6) .10 (6)
Year ended 9/30/2003 8 1.61 1.08 .10
Period from 5/29/2002 to 9/30/2002 1 .71 .51 .09
CLASS R-2:
Six months ended 3/31/2004 (5) 281 1.73 (6) .93 (6) .10 (6)
Year ended 9/30/2003 206 1.68 1.08 .11
Period from 5/21/2002 to 9/30/2002 23 .57 .52 .11
CLASS R-3:
Six months ended 3/31/2004 (5) 181 1.11 (6) .93 (6) .10 (6)
Year ended 9/30/2003 138 1.10 1.03 .17
Period from 6/4/2002 to 9/30/2002 15 .37 .34 .22
CLASS R-4:
Six months ended 3/31/2004 (5) 33 .70 (6) .68 (6) .35 (6)
Year ended 9/30/2003 26 .72 .72 .48
Period from 6/27/2002 to 9/30/2002 1 .30 .19 .27
CLASS R-5:
Six months ended 3/31/2004 (5) 61 .42 (6) .38 (6) .65 (6)
Year ended 9/30/2003 74 .41 .41 .84
Period from 5/15/2002 to 9/30/2002 49 .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) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) Total returns exclude all contingent deferred sales charges.
(4) The ratios in this column reflect the impact, if any, of certain
reimbursements and payments 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 share
classes (except Class R-5), CRMC voluntarily 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 voluntarily
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
OTHER SHARE CLASS RESULTS
CLASS B, CLASS C, CLASS F AND CLASS 529 unaudited
Returns for periods ended March 31, 2004:
1 YEAR LIFE OF CLASS
CLASS B SHARES
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase - 4.90% + 1.29% (1)
Not reflecting CDSC + 0.10% + 1.77% (1)
CLASS C SHARES
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase - 0.90% + 0.65% (2)
Not reflecting CDSC + 0.10% + 0.65% (2)
CLASS F SHARES (3)
Not reflecting annual asset-based fee charged by
sponsoring firm + 0.36% + 1.18% (4)
CLASS 529-A SHARES + 0.45% + 0.75% (5)
CLASS 529-B SHARES
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase - 4.90% - 2.08% (6)
Not reflecting CDSC + 0.10% + 0.15% (6)
CLASS 529-C SHARES
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase - 0.90% + 0.16% (7)
Not reflecting CDSC + 0.10% + 0.16% (7)
CLASS 529-E SHARES (3) + 0.11% + 0.32% (8)
CLASS 529-F SHARES (3)
Not reflecting annual asset-based fee charged by
sponsoring firm + 0.24% + 0.37% (9)
Figures shown on this page 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.
(1) Average annual total return from March 15, 2000, when Class B shares were
first sold.
(2) Average annual total return from March 16, 2001, when Class C shares were
first sold.
(3) These shares are sold without any initial or contingent deferred sales
charge.
(4) Average annual total return from March 26, 2001, when Class F shares were
first sold.
(5) Average annual total return from February 15, 2002, when Class 529-A shares
were first sold.
(6) Average annual total return from June 7, 2002, when Class 529-B shares were
first sold.
(7) Average annual total return from April 2, 2002, when Class 529-C shares
were first sold.
(8) Average annual total return from March 11, 2002, when Class 529-E shares
were first sold.
(9) Average annual total return from September 16, 2002, when Class 529-F
shares were first sold.
THE U.S. TREASURY MONEY FUND OF AMERICA
INVESTMENT PORTFOLIO, March 31, 2004 unaudited
PRINCIPAL MARKET
YIELD AT AMOUNT VALUE
SHORT-TERM SECURITIES - 100.17% ACQUISITION (000) (000)
U.S. TREASURIES - 100.17%
U.S. Treasury Bills 4-1-04 0.86%-0.89% $ 57,400 $ 57,399
U.S. Treasury Bills 4-8-04 0.87%-0.97% 50,000 49,991
U.S. Treasury Bills 4-15-04 0.90%-0.97% 75,000 74,974
U.S. Treasury Bills 4-22-04 0.88%-0.89% 60,000 59,969
U.S. Treasury Bills 4-29-04 0.91%-0.94% 50,000 49,964
U.S. Treasury Bills 5-6-04 0.88%-0.93% 81,100 81,028
U.S. Treasury Bills 5-13-04 0.91%-0.92% 18,600 18,580
U.S. Treasury Bills 5-20-04 0.94%-0.95% 25,000 24,970
U.S. Treasury Bills 6-3-04 0.94%-0.96% 49,000 48,922
U.S. Treasury Bills 6-10-04 0.93%-0.96% 24,300 24,257
U.S. Treasury Bills 6-17-04 0.93%-0.95% 24,800 24,751
U.S. Treasury Bills 6-24-04 0.94% 50,000 49,894
TOTAL INVESTMENT SECURITIES (cost: $564,682,000) 564,699
Other assets less liabilities (942)
NET ASSETS $563,757
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2004
(dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market (cost: $564,682) $564,699
Cash 241
Receivables for sales of fund's shares 1,121
566,061
LIABILITIES:
Payables for:
Repurchases of fund's shares $1,975
Dividends on fund's shares 5
Investment advisory services 128
Services provided by affiliates 172
Deferred Trustees' compensation 13
Other fees and expenses 11 2,304
NET ASSETS AT MARCH 31, 2004 $563,757
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $563,740
Net unrealized appreciation 17
NET ASSETS AT MARCH 31, 2004 $563,757
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES
AUTHORIZED
SHARES NET ASSET
NET ASSETS OUTSTANDING VALUE PER SHARE
Class A $525,879 525,863 $1.00
Class R-1 775 775 1.00
Class R-2 17,481 17,480 1.00
Class R-3 11,895 11,895 1.00
Class R-4 2,139 2,139 1.00
Class R-5 5,588 5,588 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS unaudited
for the six months ended March 31, 2004 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $2,778
Fees and expenses:
Investment advisory services $916
Distribution services 393
Transfer agent services 415
Administrative services 82
Reports to shareholders 5
Registration statement and prospectus 73
Postage, stationery and supplies 93
Trustees' compensation 9
Auditing and legal 34
Custodian 11
State and local taxes 8
Other 21
Total expenses before reimbursement 2,060
Reimbursement of expenses 118 1,942
Net investment income 836
NET UNREALIZED DEPRECIATION ON INVESTMENTS (12)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $824
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER 30,
2004* 2003
OPERATIONS:
Net investment income $836 $4,537
Net unrealized (depreciation) appreciation
on investments (12) 13
Net increase in net assets
resulting from operations 824 4,550
DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS
FROM NET INVESTMENT INCOME (835) (4,538)
CAPITAL SHARE TRANSACTIONS (99,746) (24,951)
TOTAL DECREASE IN NET ASSETS (99,757) (24,939)
NET ASSETS:
Beginning of period 663,514 688,453
End of period $563,757 $663,514
*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. Each share class has identical voting rights, except for the
exclusive right to vote on matters affecting only its class. Share classes have
different fees and expenses ("class-specific fees and expenses"), primarily due
to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
NET ASSET VALUE - The fund values its shares in accordance with Securities
and Exchange Commission ("SEC") rules, using the penny-rounding method,
which permits the fund to maintain a constant net asset value of $1.00 per
share.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from an independent pricing service, when such prices are available.
However, where the investment adviser deems it appropriate, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates
market value. Securities and other assets for which representative market
quotations are not readily available are fair valued as determined in good
faith by authority of the fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are recorded by the fund as of the date the trades are executed with
brokers. Interest income is recognized on an accrual basis. Market
discounts, premiums and original issue discounts on fixed-income securities
are amortized daily over the expected life of the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific
fees and expenses) and unrealized gains and losses are allocated daily
among the various share classes based on their relative net assets.
Class-specific fees and expenses, such as distribution, administrative and
shareholder services, are charged directly to the respective share class.
DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared
daily after the determination of the fund's net investment income and are
paid to shareholders monthly.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of March 31, 2004, 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, 2004, the cost of investment securities
for federal income tax purposes was $564,682,000.
As of March 31, 2004, the components of distributable earnings on a tax basis
were as follows:
(dollars in thousands)
Undistributed net investment income $18
Gross unrealized appreciation on investment securities 17
Tax basis distributions paid or accrued to shareholders from ordinary income
were as follows (dollars in thousands):
SIX MONTHS ENDED YEAR ENDED
SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003
Class A $ 808 $ 4,486
Class R-1 -* -*
Class R-2 8 10
Class R-3 6 8
Class R-4 2 4
Class R-5 11 30
Total $ 835 $ 4,538
* Amount less than one thousand.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on an
annual rate of 0.300% on the first $800 million of daily net assets and 0.285%
on such assets in excess of $800 million. For the six months ended March 31,
2004, the investment advisory services fee was $916,000.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all
share classes, except Class R-5. Under the plans, the Board of Trustees
approves certain categories of expenses that are used to finance activities
primarily intended to sell fund shares. The plans provide for annual
expenses, based on a percentage of average daily net assets, ranging from
0.15% to 1.00% as noted on the following page. 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. Under this agreement, this share class compensates AFS for
transfer agent services including shareholder recordkeeping, communications
and transaction processing. AFS is also compensated for certain transfer
agent services provided to all other share classes from the administrative
services fees paid to CRMC described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services agreement
with CRMC to provide transfer agent and other related shareholder services
for all classes of shares other than Class A. Each relevant class pays CRMC
annual fees of 0.15% (0.10% for Class R-5) based on its respective average
daily net assets. Each relevant class also pays AFS additional amounts for
certain transfer agent services. CRMC and AFS may use these fees to
compensate third parties for performing these services. During the start-up
period for classes R-1, R-2 and R-3, CRMC has voluntarily agreed to pay a
portion of these fees. For the six months ended March 31, 2004, the total
fees paid by CRMC were $25,000. Administrative services fees are presented
gross of any payments made by CRMC.
Expenses under the agreements described above for the six months ended
March 31, 2004, were as follows (dollars in thousands):
-----------------------------------------------------------------------------------------
ADMINISTRATIVE SERVICES
---------------------------------------
CRMC
DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE TRANSFER AGENT
SHARE CLASS SERVICES SERVICES SERVICES SERVICES
-----------------------------------------------------------------------------------------
Class A $294 $415 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-1 2 Included $ -* $ -*
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-2 65 Included 13 47
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-3 29 Included 9 9
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-4 3 Included 2 -*
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-5 Not applicable Included 2 -*
in
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Total $393 $415 $26 $56
=========================================================================================
* Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay a
portion of the class-specific fees and expenses. For the six months ended
March 31, 2004, the total fees paid by CRMC for classes R-1, R-2, R-3 and
R-4 were $93,000.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to
defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease in the value
of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees received any compensation directly from the fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
REINVESTMENTS NET (DECREASE)
SALES(1) OF DIVIDENDS REPURCHASES(1) INCREASE
SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED MARCH 31, 2004
Class A $201,368 201,368 $ 769 769 $ (307,579) (307,579) $(105,442) (105,442)
Class R-1 723 723 -* -* (279) (279) 444 444
Class R-2 25,145 25,145 8 8 (22,250) (22,250) 2,903 2,903
Class R-3 6,825 6,825 6 6 (6,058) (6,058) 773 773
Class R-4 3,736 3,736 2 2 (3,092) (3,092) 646 646
Class R-5 6,856 6,856 7 7 (5,933) (5,933) 930 930
Total net increase
(decrease) $244,653 244,653 $ 792 792 $ (345,191) (345,191) $(99,746) (99,746)
YEAR ENDED SEPTEMBER 30, 2003
Class A $778,494 778,494 $4,259 4,259 $ (834,303) (834,303) $(51,550) (51,550)
Class R-1 382 382 -* -* (270) (270) 112 112
Class R-2 49,988 49,988 9 9 (36,844) (36,844) 13,153 13,153
Class R-3 35,967 35,967 6 6 (24,898) (24,898) 11,075 11,075
Class R-4 6,541 6,541 4 4 (5,101) (5,101) 1,444 1,444
Class R-5 6,797 6,797 15 15 (5,997) (5,997) 815 815
Total net increase
(decrease) $878,169 878,169 $4,293 4,293 $ (907,413) (907,413) $(24,951) (24,951)
* 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, 2004, the custodian fee of $11,000 included $1,000
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
NET ASSET DIVIDENDS
VALUE, NET FROM NET NET ASSET
BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL
OF PERIOD INCOME (2) INCOME OF PERIOD RETURN
CLASS A:
Six months ended 3/31/2004 (4) $1.00 $.001 $(.001) $1.00 .14%
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .63
Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.29
Year ended 9/30/2001 1.00 .042 (.042) 1.00 4.27
Year ended 9/30/2000 1.00 .049 (.049) 1.00 5.01
Year ended 9/30/1999 1.00 .039 (.039) 1.00 4.00
CLASS R-1:
Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11
CLASS R-2:
Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12
Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .08
CLASS R-3:
Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05
Year ended 9/30/2003 1.00 .002 (.002) 1.00 .18
Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .07
CLASS R-4:
Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .07
Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43
Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .17
CLASS R-5:
Six months ended 3/31/2004 (4) 1.00 .002 (.002) 1.00 .22
Year ended 9/30/2003 1.00 .008 (.008) 1.00 .75
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .47
RATIO OF EXPENSES RATIO OF EXPENSES RATIO OF
NET ASSETS, TO AVERAGE NET TO AVERAGE NET NET INCOME
END OF PERIOD ASSETS BEFORE ASSETS AFTER TO AVERAGE
(IN MILLIONS) REIMBURSEMENT REIMBURSEMENT (3) NET ASSETS
CLASS A:
Six months ended 3/31/2004 (4) $526 .63% (5) .63% (5) .28% (5)
Year ended 9/30/2003 631 .58 .58 .63
Year ended 9/30/2002 683 .63 .63 1.27
Year ended 9/30/2001 489 .66 .66 4.12
Year ended 9/30/2000 369 .62 .62 4.81
Year ended 9/30/1999 467 .59 .59 3.95
CLASS R-1:
Six months ended 3/31/2004 (4) 1 .94 (5) .81 (5) .10 (5)
Year ended 9/30/2003 - (6) 1.44 1.08 .12
Period from 7/12/2002 to 9/30/2002 - (6) .52 .32 .05
CLASS R-2:
Six months ended 3/31/2004 (4) 17 1.09 (5) .81 (5) .10 (5)
Year ended 9/30/2003 15 1.25 1.02 .10
Period from 6/11/2002 to 9/30/2002 1 .48 .44 .08
CLASS R-3:
Six months ended 3/31/2004 (4) 12 .82 (5) .81 (5) .10 (5)
Year ended 9/30/2003 11 1.04 .99 .11
Period from 8/16/2002 to 9/30/2002 - (6) .20 .13 .07
CLASS R-4:
Six months ended 3/31/2004 (4) 2 .77 (5) .77 (5) .14 (5)
Year ended 9/30/2003 2 .79 .77 .36
Period from 8/2/2002 to 9/30/2002 - (6) .33 .12 .15
CLASS R-5:
Six months ended 3/31/2004 (4) 6 .46 (5) .46 (5) .44 (5)
Year ended 9/30/2003 5 .46 .46 .73
Period from 5/15/2002 to 9/30/2002 4 .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) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) The ratios in this column reflect the impact, if any, of certain
reimbursements and payments from CRMC. During the start-up period for the
retirement share classes (except Class R-5), CRMC voluntarily 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 voluntarily agreed to pay a portion of the class-specific fees and
expenses for some of the share classes.
(4) Unaudited.
(5) Annualized.
(6) Amount less than $1 million.
See Notes to Financial Statements
THE TAX-EXEMPT MONEY FUND OF AMERICA Unaudited
INVESTMENT PORTFOLIO, March 31, 2004
PRINCIPAL MARKET
YIELD AT AMOUNT VALUE
SHORT-TERM SECURITIES - 99.14% ACQUISITION (000) (000)
ALABAMA - 1.28%
Industrial Dev. Board of City of Montgomery, Pollution Control and Solid Waste
Disposal Rev. Ref. Bonds (General Electric Co. Project), Series 1990, 0.95% 5/7/04 0.95% $5,000 $5,000
ARIZONA - 3.46%
Salt River Project Agricultural Improvement & Power Dist., TECP, Series B:
0.95% 4/2/04 0.95 1,000 1,000
0.95% 4/8/04 0.95 2,006 2,006
0.92% 5/4/04 0.92 5,000 5,000
0.93% 5/7/04 0.93 5,500 5,500
CALIFORNIA - 0.77%
San Diego Community College Dist., San Diego County, California, Tax-Exempt
G.O. Bonds, Election 2002, Series 2003-A, FSA insured, 3.00% 5/1/04 0.99 3,000 3,005
DELAWARE - 0.51%
Econ. Dev. Auth., Industrial Dev. Rev. Bonds (Clean Power Project),
Series 1997-D, AMT, 1.10% 8/1/29 (1) 1.10 2,000 2,000
DISTRICT OF COLUMBIA - 6.23%
Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000, TECP:
0.95% 4/5/04 0.95 3,800 3,800
0.95% 5/4/04 0.95 2,500 2,500
0.92% 5/5/04 0.92 8,000 8,000
Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP:
Series 1999-B:
0.93% 5/14/04 0.93 3,500 3,500
0.98% 5/24/04 0.98 4,500 4,500
Series 1999-C, 0.98% 5/28/04 0.98 2,000 2,000
FLORIDA - 12.35%
State Board of Education, Public Education Capital Outlay Bonds, Series 1994-A,
5.875% 6/1/16 (preref. 6/1/04) 0.98 1,665 1,695
Municipal Power Agcy, Initial Pooled Loan Project, Series 1995-A, TECP:
0.96% 4/6/04 0.96 3,400 3,400
0.92% 5/17/04 0.92 2,000 2,000
Jacksonville County Electric Auth., Series 1993-C1, TECP:
0.95% 4/12/04 0.95 5,800 5,800
0.93% 5/17/04 0.93 2,349 2,349
0.93% 5/18/04 0.93 5,000 5,000
Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled
Independent Higher Education Institutions Loan Program), Series 1985,
TECP, 0.97% 4/6/04 0.97 5,100 5,100
Sarasota County Public Hospital Dist., Hospital Rev. Bonds (Sarasota Memorial
Hospital Project), TECP:
Series 1985-B:
0.94% 5/19/04 0.94 1,000 1,000
0.95% 5/26/04 0.95 3,900 3,900
Series 1985-C, 0.92% 5/12/04 0.92 8,900 8,900
Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg.
Program), AMBAC/FGIC insured, TECP:
Series 2000-A:
0.97% 4/7/04 0.97 3,000 3,000
0.95% 5/27/04 0.95 3,135 3,135
Series 2000-D:
0.95% 5/6/04 0.95 1,500 1,500
0.92% 5/10/04 0.92 1,400 1,400
GEORGIA - 1.79%
Municipal Electric Auth. of Georgia Power Project, TECP:
Series 1985-A, 0.92% 4/12/04 0.92 4,000 4,000
Series 1985-B, 0.93% 5/7/04 0.93 2,000 2,000
Dev. Auth. of the Unified Government of Athens-Clarke County, Rev. Bonds
(University of Georgia Athletic Association Project), Series 2003,
1.10% 8/1/33 (1) 1.10 1,000 1,000
INDIANA - 1.55%
Health Fac. Fncg. Auth., Variable Rate Demand Rev. Bonds (Community Mental
Health and Rehabilitation Facs. Designated Pool Program), Series 1990,
1.07% 11/1/20 (1) 1.07 2,050 2,050
County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing
Project), AMT: (1)
Series 2000-A, 1.06% 1/1/30 1.06 2,000 2,000
Series 2001-B, 1.06% 9/1/31 1.06 2,000 2,000
MAINE - 1.30%
Municipal Bond Bank, Ref. Bonds, Series 2003-A, 4.00% 11/1/04 0.98 5,000 5,086
MARYLAND - 10.33%
Health and Higher Educational Facs. Auth., Commercial Paper Rev. Notes:
John Hopkins University Issue, Series 2001-A, 0.95% 5/3/04 0.95 8,729 8,729
Pooled Loan Program Rev. Bonds, Series 1994-D, 1.03% 1/1/29 (1) 1.03 990 990
Anne Arundel County, G.O. Bonds, Series A, TECP, 0.93% 4/21/04 0.93 7,650 7,650
Baltimore County, Consolidated Public Improvement Bond Anticipation Notes,
Series 1995, TECP:
0.95% 4/1/04 0.95 2,000 2,000
0.92% 5/11/04 0.92 2,500 2,500
0.93% 5/13/04 0.93 5,000 5,000
0.94% 5/13/04 0.94 1,000 1,000
0.95% 6/1/04 0.95 2,000 2,000
0.95% 6/2/04 0.95 3,000 3,000
Frederick County, Consolidated Public Improvement Variable Rate Demand Bond
Anticipation Notes, Series 1997, 1.02% 10/1/07 (1) 1.02 940 940
Howard County, Consolidated Public Improvement Bond Anticipation Notes,
Series 2002-C, TECP, 0.92% 5/21/04 0.92 6,500 6,500
MASSACHUSETTS - 3.43%
G.O. Ref. Bonds, Series 1998-A, 1.01% 9/1/16 (1) 1.01 2,900 2,900
Health and Educational Facs. Auth. Rev. Notes, Harvard University Issue,
Series 2002-EE, TECP, 0.95% 4/8/04 0.95 1,500 1,500
Water Resources Auth., Series 1999, TECP:
0.95% 4/6/04 0.95 4,000 4,000
0.94% 5/5/04 0.94 5,000 5,000
MICHIGAN - 2.64%
City of Detroit, Sewage Disposal System Rev. Ref. Bonds: (1)
Series 1998-A, MBIA insured, 1.03% 7/1/23 1.03 2,495 2,495
Series 2003-B, FSA insured, 1.10% 7/1/33 1.10 1,000 1,000
Board of Trustees of Michigan State University, General Rev. Bonds,
Series 2002-A, 1.10% 8/15/32 (1) 1.10 1,800 1,800
Regents of the University of Michigan, Series D, TECP, 0.93% 5/12/04 0.93 5,000 5,000
MINNESOTA - 2.44%
City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo
Medical Center), TECP:
Series 2000-C, 0.94% 5/5/04 0.94 2,500 2,500
Series 2001-B, 0.95% 4/1/04 0.95 5,000 5,000
Series 2001-C, 0.94% 5/5/04 0.94 2,000 2,000
MISSISSIPPI - 0.39%
Jackson County, Pollution Control Ref. Rev. Bonds (Chevron U.S.A. Inc. Project),
Series 1993, 1.10% 6/1/23 (1) 1.10 1,500 1,500
MISSOURI - 0.43%
The Curators of the University of Missouri Systems Facs. Demand Rev. Bonds,
Series 2001-A, 1.12% 11/1/31 (1) 1.12 1,690 1,690
NEVADA - 0.62%
G.O. Limited Tax Bonds (Nevada Municipal Bond Bank Project), Series 2003-I,
FGIC insured, 5.00% 11/1/04 0.99 2,370 2,424
NEW MEXICO - 0.49%
Capital Projects G.O. Bonds, Series 2003, 4.00% 3/1/05 1.01 1,875 1,925
NEW YORK - 0.65%
City of New York:
Housing Dev. Corp., Multi-family Mortgage Rev. Bonds (Columbus Apartments),
Series 1995-A, 1.03% 3/15/25 (1) 1.03 1,000 1,000
Transitional Fin. Auth. Recovery Bonds, Fiscal 2003 Series 3- Subseries 3A,
4.00% 11/1/04 0.98 1,510 1,536
NORTH CAROLINA - 2.20%
Capital Facs. Fin. Agcy., Duke University Issue, Series A1, TECP:
0.92% 5/3/04 0.92 3,000 3,000
0.94% 5/19/04 0.94 5,600 5,600
OHIO - 2.79%
Higher Education Capital Facs., G.O. Bonds, Series 2000-B, 5.25% 5/1/04 0.98 2,000 2,007
Highway Capital Improvements Bonds, Series E, 5.25% 5/1/04 0.98 1,275 1,279
Solid Waste Bonds, AMT: (1)
Rev. Bonds (BP Exploration & Oil Inc. Project), Series 1999, 1.15% 8/1/34 1.15 2,400 2,400
Rev. Ref. Bonds (BP Products North America Inc. Project), Series 2002,
1.15% 8/1/34 1.15 1,200 1,200
Water Dev. Auth., Pollution Control Rev. Bonds (Ohio Edison Co. Project),
Series 1988-B, AMT, 1.15% 9/1/18 (1) 1.15 1,000 1,000
Ohio State University, General Receipts, Series 2003-E, TECP, 0.92% 4/7/04 0.92 3,000 3,000
PENNSYLVANIA - 2.15%
Delaware County, Industrial Dev. Auth., Variable Rate Demand Solid Waste
Rev. Bonds (Scott Paper Co. Project), Series 1984-E, 1.05% 12/1/18 (1) 1.05 1,695 1,695
Montgomery County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds
(PECO Energy Co. Project), Series 1994-A, TECP:
0.93% 4/1/04 0.93 3,000 3,000
0.95% 4/2/04 0.95 3,700 3,700
SOUTH CAROLINA - 2.15%
Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP:
0.95% 4/2/04 0.95 3,500 3,500
0.95% 4/7/04 0.95 2,500 2,500
0.93% 5/3/04 0.93 1,000 1,000
0.95% 5/10/04 0.95 1,400 1,400
TENNESSEE - 0.80%
Public Building Auth. of the City of Clarksville, Adjustable Rate Pooled Fncg.
Rev. Bonds (Municipal Bond Fund), Series 2003, 1.10% 1/1/33 (1) 1.10 1,110 1,110
Health, Educational and Housing Fac., Board of the County of Shelby, Variable
Rate Rev. Bonds (Baptist Memorial Hospital Project), Series 2000, 1.01% 5/13/04 1.01 2,000 2,000
TEXAS - 17.62%
G.O. Bonds, Series 1994-A, 5.75% 10/1/09 (preref. 10/1/04) 0.99 5,000 5,118
Public Fin. Auth., Rev. Notes, TECP:
Series 2002-A, 0.95% 4/7/04 0.95 1,900 1,900
Series 2002-B:
0.97% 4/8/04 0.97 7,000 7,000
0.95% 4/12/04 0.95 3,950 3,950
Series 2003-B, 0.95% 5/10/04 0.95 2,000 2,000
Harris County:
G.O. Notes, Series B, TECP, 0.95% 5/11/04 0.95 1,970 1,970
Health Facs. Dev. Corp., Rev. Bonds (YMCA of the Greater Houston Area),
Series 2002, 1.12% 7/1/37 (1) 1.12 1,000 1,000
City of Houston G.O. Notes, TECP:
Series A:
0.93% 4/7/04 0.93 2,500 2,500
0.93% 4/8/04 0.93 2,000 2,000
Series D:
0.93% 4/7/04 0.93 3,000 3,000
0.95% 5/19/04 0.95 5,000 5,000
City of Midlotian Industrial Dev. Corp., Variable Rate Demand Pollution Control
Rev. Bonds (Box-Crow Cement Co. Project), Series 1984, 1.03% 12/1/09 (1) 1.03 1,900 1,900
City of San Antonio:
Electric and Gas Systems Notes, Series A, TECP, 0.95% 4/2/04 0.95 5,500 5,500
Water System Notes, Series A:
0.95% 4/1/04 0.95 5,000 5,000
0.95% 4/8/04 0.95 5,600 5,600
Board of Regents of The University of Texas System, Permanent University Fund
Flexible Rate Notes, Series 2002-A, TECP:
0.95% 4/2/04 0.95 2,000 2,000
0.90% 4/5/04 0.90 8,337 8,337
0.95% 5/11/04 0.95 5,000 5,000
UTAH - 3.52%
Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds:
Series 1985-E, AMBAC insured:
0.95% 4/6/04 0.95 2,000 2,000
0.95% 5/6/04 0.95 1,000 1,000
Series 1985-F, AMBAC insured:
0.95% 5/6/04 0.95 5,500 5,500
0.94% 5/10/04 0.94 4,000 4,000
Series 1997-B, TECP, 0.95% 5/6/04 0.95 1,250 1,250
VIRGINIA - 8.37%
Commonwealth Transportation Board, Federal Highway Reimbursement Anticipation
Notes, Series 2000, 5.50% 10/1/04 1.04 2,500 2,556
Public School Auth., School Equipment Fncg. Notes, Educational Technology,
Series 2000-VI, 5.125% 4/1/04 0.94 1,200 1,200
Fairfax County, Public Improvement Bonds:
Series 1997-A, 6.00% 6/1/04 0.90 2,000 2,017
Series 2000-A, 5.25% 6/1/04 0.95 2,050 2,064
Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes,
Series 1999-A, AMT, TECP:
0.98% 4/5/04 0.98 4,000 4,000
0.98% 5/3/04 0.98 3,000 3,000
0.94% 5/20/04 0.94 2,500 2,500
1.02% 5/27/04 1.02 2,700 2,700
Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal
Associates Project), TECP:
Series 1987-A, 0.92% 5/17/04 0.92 2,635 2,635
Series 1987-B:
0.92% 5/4/04 0.92 2,500 2,500
0.95% 5/4/04 0.95 3,000 3,000
City of Virginia Beach, G.O. Public Improvement Bonds, Series 2003-A,
2.50% 5/01/04 1.01 2,500 2,503
University of Virginia Issue Rev. Pledge Notes, Series 2003-A, TECP:
0.95% 5/4/04 0.95 1,000 1,000
0.95% 5/7/04 0.95 1,000 1,000
WASHINGTON - 5.16%
Port of Seattle, Subordinate Lien Rev. Notes, TECP:
Series 2004-B1, AMT, 0.99% 5/14/04 0.99 2,300 2,300
Series 1999-A1, 0.94% 5/18/04 0.94 4,315 4,315
City of Tacoma, Rev. Bond Anticipation Notes, Series 2002-2A, TECP:
0.92% 5/7/04 0.92 2,500 2,500
0.93% 5/25/04 0.93 7,000 6,999
Port of Tacoma, Subordinate Lien Rev. Notes, Series A, TECP, 0.98% 5/10/04 0.98 4,000 4,000
West Virginia - 1.05%
Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project),
Series 1989-A, AMT:
1.00% 4/6/04 1.00 1,200 1,200
0.99% 5/14/04 0.99 2,900 2,900
WISCONSIN - 1.39%
G.O. Notes, Series 1998-A, TECP:
0.93% 5/6/04 0.93 4,400 4,400
0.95% 5/6/04 0.95 1,000 1,000
Wyoming - 1.28%
Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds
(PacifiCorp Project), Series 1988-A, TECP:
0.92% 4/2/04 0.92 2,000 2,000
0.95% 4/16/04 0.95 3,000 3,000
TOTAL INVESTMENT SECURITIES (cost: $386,919,000) 386,910
Other assets less liabilities 3,372
NET ASSETS $390,282
(1) Coupon rate may change periodically; the date of the next scheduled coupon
rate change is considered to be the maturity date.
KEY TO ABBREVIATIONS
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Ref. = Refunding
Rev. = Revenue
TECP = Tax-Exempt Commercial Paper
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at March 31, 2004
(dollars and shares in thousands, except per-share amounts)
ASSETS:
Investment securities at market:
(cost: $386,919) $386,910
Cash 1,094
Receivables for:
Sales of fund's shares $3,527
Interest 985 4,512
392,516
LIABILITIES:
Payables for:
Repurchases of fund's shares 2,050
Dividends on fund's shares 5
Investment advisory services 123
Services provided by affiliates 32
Deferred Trustees' compensation 15
Other fees and expenses 9 2,234
NET ASSETS AT MARCH 31, 2004 $390,282
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $390,388
Distributions in excess of net investment income (97)
Net unrealized depreciation (9)
NET ASSETS AT MARCH 31, 2004 $390,282
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES
AUTHORIZED
SHARES NET ASSET
NET ASSETS OUTSTANDING VALUE PER SHARE
Class A $377,844 377,947 $1.00
Class R-5 12,438 12,441 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the six months ended March 31, 2004
INVESTMENT INCOME: unaudited
Income: (dollars in thousands)
Interest $1,773
Fees and expenses:
Investment advisory services $701
Distribution services 91
Transfer agent services 66
Administrative services 7
Reports to shareholders 3
Registration statement and prospectus 54
Postage, stationery and supplies 25
Trustees' compensation 8
Auditing and legal 39
Custodian 9
State and local taxes 5
Other 17 1,025
Net investment income 748
NET UNREALIZED DEPRECIATION ON INVESTMENTS (5)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $743
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004* SEPTEMBER 30, 2003
OPERATIONS:
Net investment income $748 $2,100
Net unrealized depreciation on investments (5) (22)
Net increase in net assets
resulting from operations 743 2,078
DIVIDENDS PAID OR ACCRUED TO
SHAREHOLDERS FROM NET INVESTMENT INCOME: (749) (2,101)
CAPITAL SHARE TRANSACTIONS 26,996 11,833
TOTAL INCREASE IN NET ASSETS 26,990 11,810
NET ASSETS:
Beginning of period 363,292 351,482
End of period $390,282 $363,292
*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). Both share classes are 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. Each share class has identical voting rights, except for the
exclusive right to vote on matters affecting only its class. Share classes have
different fees and expenses ("class-specific fees and expenses"), primarily due
to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
NET ASSET VALUE - The fund values its shares in accordance with Securities
and Exchange Commission ("SEC") rules, using the penny-rounding method,
which permits the fund to maintain a constant net asset value of $1.00 per
share.
SECURITY VALUATION - Fixed-income securities are valued at prices obtained
from an independent pricing service, when such prices are available.
However, where the investment adviser deems it appropriate, such securities
will be valued at the mean quoted bid and asked prices or at prices for
securities of comparable maturity, quality and type. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates
market value. The ability of the issuers of the debt securities held by the
fund to meet their obligations may be affected by economic developments in
a specific industry, state or region. Securities and other assets for which
representative market quotations are not readily available are fair valued
as determined in good faith by authority of the fund's Board of Trustees.
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) and unrealized gains and losses are allocated daily
among the various share classes based on their relative net assets.
Class-specific fees and expenses, such as distribution, administrative and
shareholder services, are charged directly to the respective share class.
DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared
daily after the determination of the fund's net investment income and are
paid to shareholders monthly.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of March 31, 2004, 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, 2004, the cost of investment securities
for federal income tax purposes was $386,919,000.
As of March 31, 2004, the components of distributable earnings on a tax basis
were as follows:
(dollars in thousands)
Undistributed net investment income $ 20
Short-term loss deferrals (expiring 2004 through 2011) (100)
Gross unrealized depreciation on investment securities (9)
Tax basis distributions paid or accrued to shareholders from ordinary income
were as follows (dollars in thousands):
SIX MONTHS ENDED YEAR ENDED
SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003
Class A $ 730 $ 2,056
Class R-5 19 45
Total $ 749 $ 2,101
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.390% on the first $200 million
of daily net assets and decreasing to 0.290% on such assets in excess of $1.2
billion. For the six months ended March 31, 2004, the investment advisory
services fee was $701,000, which was equivalent to an annualized rate of 0.381%
of average daily net assets.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described on the following page:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for
Class A shares. Under the plans, the Board of Trustees approves certain
categories of expenses that are used to finance activities primarily
intended to sell fund shares. The plans provide 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 all other share classes from
the administrative services fees paid to CRMC described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services agreement
with CRMC to provide transfer agent and other related shareholder services
for 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):
REINVESTMENTS
SALES(1) OF DIVIDENDS REPURCHASES(1) NET INCREASE
SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
SIX MONTHS ENDED MARCH 31, 2004
Class A $250,052 250,052 $ 702 702 $(226,243) (226,243) $24,511 24,511
Class R-5 33,902 33,902 13 13 (31,430) (31,430) 2,485 2,485
Total net increase
(decrease) $283,954 283,954 $ 715 715 $(257,673) (257,673) $26,996 26,996
YEAR ENDED SEPTEMBER 30, 2003
Class A $416,952 416,952 $1,948 1,948 $(407,232) (407,232) $11,668 11,668
Class R-5 31,199 31,199 35 35 (31,069) (31,069) 165 165
Total net increase
(decrease) $448,151 448,151 $1,983 1,983 $(438,301) (438,301) $11,833 11,833
(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, 2004, the custodian fee of $9,000 included $1,000
that was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
NET ASSET DIVIDENDS
VALUE, NET FROM NET NET ASSET
BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL
OF PERIOD INCOME(2) INCOME OF PERIOD RETURN
CLASS A:
Six months ended 3/31/2004 (3) $1.00 $.002 (.002) $1.00 .20%
Year ended 9/30/2003 1.00 .006 (.006) 1.00 .57
Year ended 9/30/2002 1.00 .010 (.010) 1.00 1.05
Year ended 9/30/2001 1.00 .029 (.029) 1.00 2.92
Year ended 9/30/2000 1.00 .032 (.032) 1.00 3.29
Year ended 9/30/1999 1.00 .025 (.025) 1.00 2.51
CLASS R-5:
Six months ended 3/31/2004 (3) 1.00 .002 (.002) 1.00 .19
Year ended 9/30/2003 1.00 .005 (.005) 1.00 .54
Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .17
RATIO OF RATIO OF
NET ASSETS, EXPENSES NET INCOME
END OF PERIOD TO AVERAGE TO AVERAGE
(IN MILLIONS) NET ASSETS NET ASSETS
CLASS A:
Six months ended 3/31/2004 (3) $378 .54% (4) .42% (4)
Year ended 9/30/2003 353 .55 .57
Year ended 9/30/2002 341 .54 1.04
Year ended 9/30/2001 319 .52 2.86
Year ended 9/30/2000 276 .64 3.23
Year ended 9/30/1999 255 .65 (5) 2.33
CLASS R-5:
Six months ended 3/31/2004 (3) 12 .58 (4) .38 (4)
Year ended 9/30/2003 10 .58 .55
Period from 7/15/2002 to 9/30/2002 10 .12 .17
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Year ended 1999 is based on shares outstanding on the last day of the year;
all other periods are based on average shares outstanding.
(3) Unaudited.
(4) Annualized.
(5) Had CRMC not waived investment advisory services, the fund's expense ratio
would have been .68%.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
135 South State College Boulevard
Brea, CA 92821-5823
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065 Santa Ana, CA 92799-5065
P.O. Box 659522 San Antonio, TX 78265-9522
P.O. Box 6007 Indianapolis, IN 46206-6007
P.O. Box 2280 Norfolk, VA 23501-2280
CUSTODIAN OF ASSETS
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, CA 90071-2228
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, CA 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Most American Funds offer several share classes, each with its own sales charge
and expense structure allowing you to choose the one that best meets your
financial needs. The three American Funds money market funds each offer Class A
shares at no sales charge.
The Cash Management Trust of America (CMTA) is the only American Funds money
market fund that offers Class B, Class C, 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 CASH MANAGEMENT TRUST OF AMERICA, THE U.S. TREASURY MONEY
FUND OF AMERICA, THE TAX-EXEMPT MONEY FUND OF AMERICA AND COLLEGEAMERICA. THIS
AND OTHER IMPORTANT INFORMATION IS CONTAINED IN THE PROSPECTUS, WHICH CAN BE
OBTAINED FROM YOUR FINANCIAL ADVISER AND SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE COMPANY 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 UPON REQUEST, FREE OF CHARGE,
BY CALLING AMERICAN FUNDS SERVICE COMPANY, VISITING THE AMERICAN FUNDS WEBSITE
OR ACCESSING THE U.S. SECURITIES AND EXCHANGE COMMISSION WEBSITE AT WWW.SEC.GOV.
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the funds. If used as
sales material after June 30, 2004, 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 25 million shareholder accounts.
Our unique combination of strengths includes these five factors:
o A LONG-TERM, VALUE-ORIENTED APPROACH
Rather than follow fads, we pursue a consistent strategy, focusing on each
investment's long-term potential.
o AN UNPARALLELED GLOBAL RESEARCH EFFORT
American Funds draws on one of the industry's most globally integrated
research networks.
o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Every American Fund is divided among a number of portfolio counselors. Each
takes responsibility for a portion independently, within each fund's
objectives; in most cases, research analysts manage a portion as well. Over
time this method has contributed to a consistency of results and continuity
of management.
o EXPERIENCED INVESTMENT PROFESSIONALS
The recent market decline was not the first for most of the portfolio
counselors who serve the American Funds. Nearly 70% of them were in the
investment business before the sharp market decline of 1987.
o A COMMITMENT TO LOW OPERATING EXPENSES
American Funds' operating expenses are among the lowest in the mutual fund
industry. Our portfolio turnover rates are low as well, keeping transaction
costs and tax consequences contained.
29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS
o GROWTH FUNDS
AMCAP Fund(R)
EuroPacific Growth Fund(R)
The Growth Fund of America(R)
The New Economy Fund(R)
New Perspective Fund(R)
New World FundSM
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
American Mutual Fund(R)
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America(R)
Washington Mutual Investors FundSM
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 TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities FundSM
o TAX-EXEMPT BOND FUNDS
American High-Income Municipal Bond Fund(R)
Limited Term Tax-Exempt Bond Fund of AmericaSM
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 AmericaSM
The U.S. Treasury Money Fund of AmericaSM
THE CAPITAL GROUP COMPANIES
American Funds
Capital Research and Management
Capital International
Capital Guardian
Capital Bank and Trust
Lit. No. MFGESR-960-0504
Litho in USA AGD/AL/8090
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 - Reserved
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 8 - Reserved
ITEM 9 - 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 committee comprised solely of persons
who are not considered "interested persons" of the registrant within the meaning
of the Investment Company Act of 1940. 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 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 committee.
ITEM 10 - Controls and Procedures
(a) The officers providing the certifications in this report in accordance with
rule 30a-2 under the Investment Company Act of 1940 have concluded, based
on their evaluation of the Registrant's disclosure controls and procedures
(as such term is defined in such rule), that such controls and procedures
are adequate and reasonably designed to achieve the purposes described in
paragraph (c) of such rule.
(b) There were no changes in the Registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the Registrant's last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 11 - Exhibits
(a) The Code of Ethics - not applicable for filing of Semiannual Reports to
Shareholders.
(b) The certifications required by Rule 30a-2 of the Investment Company Act of
1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of
2002 are attached as exhibits hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE U.S. TREASURY MONEY FUND OF AMERICA
By /s/ Abner D. Goldstine
Abner D. Goldstine, President and PEO
Date: June 8, 2004
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, 2004
By /s/ Susi M. Silverman
Susi M. Silverman, Treasurer
Date: June 8, 2004