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: September 30, 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:
Michael Glazer
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[logo - American Funds(R)]
The right choice for the long term(R)
THE CASH MANAGEMENT TRUST OF AMERICA
THE U.S. TREASURY MONEY FUND OF AMERICA
THE TAX-EXEMPT MONEY FUND OF AMERICA
Laying the foundation for your investment goals:
A fund for every portfolio
[cover illustration: abstract of three men, dressed in suits, carrying geometric
shapes and placing the shapes into similarly shaped cut-outs in the floor]
Annual report for the year ended September 30, 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.
Contents Page
The Cash Management Trust of America investment portfolio 4
The U.S. Treasury Money Fund of America investment portfolio 22
The Tax-Exempt Money Fund of America investment portfolio 32
FIGURES SHOWN ARE PAST RESULTS FOR CLASS A SHARES AND ARE NOT PREDICTIVE OF
RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE LOWER OR HIGHER
THAN THOSE SHOWN. INVESTMENT RETURNS WILL VARY. ALTHOUGH THE FUNDS SEEK TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUNDS. INVESTING FOR SHORT PERIODS MAKES LOSSES MORE
LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED
BY A BANK OR ANY OTHER ENTITY. FOR THE MOST CURRENT INFORMATION AND MONTH-END
RESULTS, VISIT AMERICANFUNDS.COM.
[chart]
[begin line chart]
SEVEN-DAY ANNUALIZED RATES,1 FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX
For the five years ended September 30, 2004 (plotted monthly)
<s> <c> <c> <c> <c> <c>
Federal Tax-Exempt U.S. Treasury
Funds Rate Money Fund Cash Management Money Fund Consumer Price
(target rate) of America (2) Trust of America of America (3) Index (inflation)
Sep-98 5.25 4.43 4.99 4.35 1.49
Oct-98 5.00 3.92 4.74 3.81 1.49
Nov-98 4.75 3.82 4.49 3.72 1.55
Dec-98 4.75 4.03 4.73 3.89 1.61
Jan-99 4.75 3.42 4.47 3.80 1.67
Feb-99 4.75 3.42 4.34 3.83 1.61
Mar-99 4.75 3.52 4.23 3.83 1.73
Apr-99 4.75 3.89 4.26 3.75 2.28
May-99 4.75 3.92 4.34 3.82 2.09
Jun-99 5.00 4.00 4.35 3.79 1.96
Jul-99 5.00 3.88 4.57 4.00 2.14
Aug-99 5.25 4.06 4.75 4.24 2.26
Sep-99 5.25 4.46 4.61 4.32 2.63
Oct-99 5.25 4.40 4.95 4.11 2.56
Nov-99 5.50 4.65 5.00 4.49 2.62
Dec-99 5.50 5.26 5.32 4.47 2.68
Jan-00 5.50 4.17 5.37 4.58 2.74
Feb-00 5.75 4.17 5.20 4.48 3.22
Mar-00 6.00 4.49 5.46 5.08 3.76
Apr-00 6.00 5.35 5.48 5.07 3.07
May-00 6.50 5.45 5.65 5.05 3.19
Jun-00 6.50 5.82 6.06 5.20 3.73
Jul-00 6.50 5.40 5.99 5.21 3.66
Aug-00 6.50 5.55 6.04 5.60 3.41
Sep-00 6.50 5.89 6.06 5.64 3.45
Oct-00 6.50 5.48 6.11 5.44 3.45
Nov-00 6.50 5.85 5.97 5.36 3.45
Dec-00 6.50 5.68 5.94 5.12 3.39
Jan-01 5.50 4.55 5.39 5.15 3.73
Feb-01 5.50 3.98 5.01 4.71 3.53
Mar-01 5.00 4.48 4.67 4.37 2.92
Apr-01 4.50 4.69 4.24 3.65 3.27
May-01 4.00 4.29 3.67 3.42 3.62
Jun-01 3.75 3.88 3.28 3.17 3.25
Jul-01 3.75 3.45 3.19 2.89 2.72
Aug-01 3.50 3.15 3.09 2.96 2.72
Sep-01 3.00 2.89 2.71 2.59 2.65
Oct-01 2.50 2.55 1.98 2.05 2.13
Nov-01 2.00 2.20 1.65 1.60 1.90
Dec-01 1.75 1.83 1.33 1.25 1.55
Jan-02 1.75 1.35 1.17 1.13 1.14
Feb-02 1.75 1.32 1.14 1.10 1.14
Mar-02 1.75 1.25 1.17 1.14 1.48
Apr-02 1.75 1.68 1.25 1.16 1.64
May-02 1.75 1.71 1.26 1.12 1.18
Jun-02 1.75 1.45 1.13 1.09 1.07
Jul-02 1.75 1.29 1.16 1.06 1.46
Aug-02 1.75 1.25 1.15 1.13 1.80
Sep-02 1.75 1.46 1.15 1.10 1.51
Oct-02 1.75 1.52 1.21 1.08 2.03
Nov-02 1.25 1.35 1.00 0.87 2.20
Dec-02 1.25 1.04 0.78 0.71 2.38
Jan-03 1.25 0.79 0.77 0.59 2.60
Feb-03 1.25 0.80 0.89 0.58 2.98
Mar-03 1.25 0.61 0.99 0.58 3.02
Apr-03 1.25 0.88 0.85 0.57 2.22
May-03 1.25 0.88 0.88 0.55 2.06
Jun-03 1.00 0.91 0.68 0.46 2.11
Jul-03 1.00 0.63 0.84 0.42 2.11
Aug-03 1.00 0.51 1.05 0.38 2.16
Sep-03 1.00 0.63 1.06 0.42 2.32
Oct-03 1.00 0.60 0.89 0.37 2.04
Nov-03 1.00 0.68 0.77 0.29 1.77
Dec-03 1.00 0.72 0.73 0.25 1.88
Jan-04 1.00 0.45 0.59 0.17 1.93
Feb-04 1.00 0.85 0.63 0.30 1.69
Mar-04 1.00 0.66 0.60 0.30 1.74
Apr-04 1.00 0.74 0.67 0.39 2.29
May-04 1.00 0.82 0.73 0.29 3.05
Jun-04 1.25 0.88 0.67 0.39 3.27
Jul-04 1.25 0.88 1.03 0.49 2.99
Aug-04 1.50 0.98 1.42 0.76 2.65
Sep-04 1.75 1.12 1.51 0.88 2.54
[end line chart]
(1) Equivalent to Securities and Exchange Commission (SEC) yields.
(2) Represents the fund's taxable equivalent yield calculated at the maximum
effective 35.0% federal tax rate.
(3) Because income paid by The U.S. Treasury Money Fund of America is exempt
from state and local taxes in most states, the fund's taxable equivalent
yield would be higher than the rates shown in the chart.
Results for share classes B, C, F and 529 of The Cash Management Trust of
America can be found on page 19. Please see the inside back cover for important
information about share classes.
The return of principal for the bond holdings in The Cash Management Trust of
America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund
of America is not guaranteed. Fund shares are subject to the same interest rate,
inflation and credit risks associated with the underlying bond holdings.
Income from The Tax-Exempt Money Fund of America may be subject to state or
local income taxes and/or federal alternative minimum taxes. Certain other
income may be taxable.
FELLOW SHAREHOLDERS:
When we reported to you one year ago, the U.S economy was slowly strengthening
and short-term interest rates had reached lows not seen in more than 40 years.
Despite a recent rise in rates, yields remained at historically low levels
throughout fiscal 2004, and money market funds in general generated only modest
returns for the year.
During the 12 months ended September 30, 2004, The Cash Management Trust of
America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund
of America achieved positive returns consistent with their objective of
preserving shareholders' capital. Nonetheless, returns were again outpaced by
the rate of inflation as rising energy prices in particular spurred the Consumer
Price Index higher. The recent low-interest-rate environment in the United
States, while a blessing for borrowers, continues to result in low income
returns for money market funds. Beginning in June 2004, the Federal Reserve
Board raised short-term rates by one percentage point (100 basis points). As a
result, the funds' yields rose in the last months of the fiscal year, and most
signs point to a continued rise in short-term rates.
THE FUNDS' RESULTS
THE CASH MANAGEMENT TRUST OF AMERICA produced an income return of 0.84% with
dividends reinvested for the fiscal year ended September 30, 2004.
THE U.S. TREASURY MONEY FUND OF AMERICA generated a 12-month income return of
0.39%, including reinvested dividends. Because all of the fund's earnings are
derived from investments in U.S. Treasury securities, the income paid by the
fund is exempt from certain state and local taxes.
THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return
of 0.49% with dividends reinvested for the 12 months ended September 30, 2004.
This return is equivalent to a return of 0.75% for investors in the 35.0%
federal tax bracket. A portion of this return may also be exempt from state and
local taxes.
INTEREST RATES ON THE RISE
As we indicated earlier, amid signs of a strengthening economy and hints of
rising inflation, the Federal Reserve Board raised the federal funds rate by a
quarter point at each of its most recent meetings. These four hikes in June,
August, September and November brought the federal funds rate to 2.00%. As the
economy continues to expand, the Fed has made it clear that rates may rise
further.
Because of the short-term maturities of the funds' holdings, higher rates are
reflected in the funds' yields (shown in the table below) as the proceeds of
maturing issues are reinvested. The likelihood of a higher interest-rate
environment in the future could further boost the yield of each of the three
money market funds.
THE FUNDS' OBJECTIVE
Protecting our shareholders' principal, while providing a reasonable income
return, is our foremost objective. Because of the stability and convenience they
provide, the American Funds money market funds can play a valuable role in your
overall investment plan. In the article that begins on page 2, we illustrate the
ways in which the money market funds can help you achieve your long-term
financial goals.
Since September 30, 2003, the number of shareholder accounts in all three funds
has increased to more than half a million. We take this opportunity to welcome
our new shareholders and express our gratitude to our many long-time
shareholders. We appreciate the confidence you have placed in us and look
forward to helping you meet your financial goals.
Cordially,
/s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Boards President
November 15, 2004
For current information about the funds, visit americanfunds.com.
YOUR FUNDS' ANNUALIZED SEVEN-DAY SEC YIELDS AS OF 9/30/2004
The Cash Management Trust of America +1.51%
The U.S. Treasury Money Fund of America +0.88%
(reflecting a fee waiver, +0.87% without the waiver)
The Tax-Exempt Money Fund of America +0.73%
(reflecting a fee waiver, +0.71% without the waiver)
The Tax-Exempt Money Fund of America
(taxable equivalent yield)* +1.12%
(reflecting a fee waiver, +1.09% without the waiver)
*Represents the fund's taxable equivalent yield calculated at the maximum
effective 35.0% federal tax rate.
LAYING THE FOUNDATION FOR YOUR INVESTMENT GOALS
[cover illustration: abstract of three men, dressed in suits, carrying geometric
shapes and placing the shapes into similarly shaped cut-outs in the floor]
A FUND FOR EVERY PORTFOLIO
Every well-balanced portfolio should include assets that can provide stability.
Although they carry no guarantee, The Cash Management Trust of America, The U.S.
Treasury Money Fund of America and The Tax-Exempt Money Fund of America are
managed to sustain a net asset value of $1.00 per share, so assets in these cash
funds remain relatively steady while earning modest income.
Unlike a savings or a checking account, the American Funds money market funds
are actively managed by a group of dedicated and experienced investment
professionals at Capital Research and Management Company, the funds' investment
adviser. They recognize the value of every dollar that comes into the funds, and
they strive to preserve that value even under the most challenging market
conditions. Although returns are not guaranteed, the funds have provided some
level of interest income for every year over each of their lifetimes. As has
happened in the recent months of rising short-term rates, changes in the yields
of money market instruments quickly show up in the funds' returns.
American Funds money market funds can be used as accessible tools to help lay
the foundation of a solid financial plan. Here are three key ways that the money
market funds can be used to help you meet your long-term investment goals:
AS A FLEXIBLE CASH RESERVE
Virtually everyone needs to have money readily available for monthly bills,
unexpected expenses and emergencies. Others need a temporary parking place for
sums such as an inheritance or bonus. Your American Funds money market fund can
provide a holding place for your cash reserves, allowing you to earn income in
the process. Your money can be easily redeemed online, by mail or telephone, and
through systematic withdrawals and free check-writing privileges. With your
reserve assets in a money market fund, you also have the added advantage of
liquidity should other investment opportunities arise, enabling you to pursue
attractive financial alternatives whenever they occur.
A HOLDING PLACE FOR REGULARLY SCHEDULED INVESTMENTS
Your money market fund can be used to accumulate cash designated for periodic
purchases of shares in American Funds stock and bond funds. With a dollar cost
averaging plan, you invest a consistent amount at regular intervals, such as
once a month or every quarter, and that allows you to gradually increase your
exposure to stock and bond markets.
As the markets rise and fall, you may at times be able to purchase shares in
stock and bond funds at a lower average cost than you would if you bought all
the shares at once. Also, the virtually impossible task of predicting the best
day to buy shares becomes unnecessary. By investing through a dollar cost
averaging plan, you can purchase more shares when prices are down and fewer when
prices are up. Although this strategy will not ensure a profit or protect you
from loss in a declining market, it can reduce the average cost of your
portfolio over time by putting market fluctuations to work for you. When share
prices are declining, you should always consider your willingness to keep
investing. To learn more about a dollar cost averaging plan, please visit our
website at americanfunds.com.
TO PRESERVE CAPITAL
Most prudent investors allocate their resources among stock and bond funds.
However, after the market volatility of the past few years, many investors have
learned the importance of having a portion of their portfolios in cash. A cash
position that outpaces the rate of inflation over the long term is a valuable
asset. By placing a percentage of your assets in a money market fund, you can
preserve your capital while still earning a stream of income: a sensible move in
any market climate.
Whether used as a temporary parking place between longer term investments, as
part of a regular investment program or simply as a way to earn income on the
cash-reserve portion of a balanced portfolio, The Cash Management Trust of
America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund
of America can be instrumental in helping you achieve your long-term financial
goals.
[Begin Sidebar]
AMERICAN FUNDS MONEY MARKET FUNDS SERVICES
FREE CHECK WRITING
You can write checks for $250 or more against your Class A share accounts in The
Cash Management Trust of America, The U.S. Treasury Money Fund of America and
The Tax-Exempt Money Fund of America.
EASY INVESTING
Once you've set up an account, you can make additional investments of $50 or
more:
o online at americanfunds.com and by phone when you enroll in FundsLink(R)
(details on our website at americanfunds.com or by calling Shareholder
Services at 800/421-0180),
o by mail, or
o through an automatic dollar cost averaging program.
EXCHANGE PRIVILEGES
American Funds offers a full range of funds to suit your investment objectives.
You may make exchanges among virtually all of these funds as your needs or goals
change.* You can also automatically exchange shares in amounts of $50 or more
though an automatic exchange plan or have dividends cross-reinvested into
another fund.
EASY WITHDRAWING
You can withdraw money from your account at any time:
o online at americanfunds.com and by phone when you enroll in FundsLink
(details on our website at americanfunds.com or by calling Shareholder
Services at 800/421-0180),
o by mail, or
o through an automatic withdrawal plan through which withdrawals and or
dividend payments can be sent to you, your bank or someone of your choosing.
*In some cases, a sales charge may apply; contact your financial adviser for
details.
[End Sidebar]
THE CASH MANAGEMENT TRUST OF AMERICA
INVESTMENT PORTFOLIO
September 30, 2004
Principal Market
Yield at amount value
SHORT-TERM SECURITIES - 99.98% acquisition (000) (000)
Certificates of deposit - 3.93%
Societe Generale
November 17, 2004 1.72% $50,000 $49,995
State Street Bank & Trust
October 12, 2004 1.56 50,000 50,000
November 9, 2004 1.70 50,000 50,000
Toronto-Dominion Bank
November 15, 2004 1.74 25,000 24,998
Wells Fargo Bank, N.A.
October 1, 2004 1.55 50,000 50,000
October 1, 2004 1.56 50,000 50,000
October 4, 2004 1.54 75,000 75,000
Total certificates of deposit 349,993
COMMERCIAL PAPER - 77.56%
3M Co.
October 28, 2004 1.68 15,000 14,980
Abbey National North America LLC
November 16, 2004 1.74 50,000 49,882
Abbott Laboratories Inc. (1)
October 21, 2004 1.61 30,000 29,972
October 26, 2004 1.54 25,000 24,971
November 18, 2004 1.75 35,000 34,917
November 23, 2004 1.76 35,000 34,908
November 30, 2004 1.77 25,000 24,925
ABN-AMRO North America Finance Inc.
November 22, 2004 1.77 50,000 49,868
AIG Funding Inc.
October 8, 2004 1.54 30,000 29,990
October 18, 2004 1.54 30,000 29,977
October 19, 2004 1.62 40,000 39,966
American Express Credit Corp.
October 5, 2004 1.53 45,000 44,990
October 6, 2004 1.51 25,000 24,994
October 20, 2004 1.65 30,000 29,973
American Honda Finance Corp.
October 4, 2004 1.53 10,000 9,998
October 6, 2004 1.58 40,000 39,989
October 12, 2004 1.60 13,500 13,493
November 10, 2004 1.70 46,500 46,409
November 18, 2004 1.75 45,000 44,891
Anheuser-Busch Cos. Inc. (1)
October 25, 2004 1.66 25,000 24,971
December 14, 2004 1.81 50,000 49,809
ANZ (Delaware) Inc.
November 10, 2004 1.70 50,000 49,901
ANZ National (International) Ltd. (1)
November 3, 2004 1.66 50,000 49,922
Bank of America Corp.
October 8, 2004 1.50 50,000 49,983
Bank of Ireland (1)
December 1, 2004 1.82 100,000 99,678
Bank of Nova Scotia
October 8, 2004 1.50 50,000 49,983
October 12, 2004 1.50 50,000 49,974
November 16, 2004 1.74 25,000 24,942
Barclays U.S. Funding LLC
November 8, 2004 1.75 100,000 99,811
BMW U.S. Capital Corp. (1)
October 27, 2004 1.77 30,000 29,960
November 22, 2004 1.77 45,000 44,883
BNP Paribas Finance Inc.
October 6, 2004 1.59 75,000 74,980
October 13, 2004 1.53 50,000 49,972
CAFCO, LLC (1)
October 7, 2004 1.52 20,000 19,994
October 15, 2004 1.62 25,000 24,983
October 27, 2004 1.59 50,000 49,939
November 17, 2004 1.80 25,000 24,940
Calyon North America Inc.
October 1, 2004 1.52 30,000 29,999
November 5, 2004 1.69 50,000 49,915
November 8, 2004 1.66 50,000 49,906
Canadian Imperial Holdings Inc.
October 19, 2004 1.58 25,000 24,979
November 23, 2004 1.80 75,000 74,798
Caterpillar Financial Services Corp.
October 12, 2004 1.55 35,000 34,982
November 29, 2004 1.78 40,000 39,883
Caterpillar Inc. (1)
October 19, 2004 1.75 25,000 24,977
CDC Commercial Paper Corp. (1)
October 20, 2004 1.55 50,000 49,956
October 21, 2004 1.55 50,000 49,954
ChevronTexaco Funding Corp.
October 4, 2004 1.48 50,000 49,992
Ciesco LLC
November 2, 2004 1.72 80,000 79,873
Clipper Receivables Co., LLC (1)
October 8, 2004 1.60 20,000 19,993
October 27, 2004 1.75 30,000 29,961
November 3, 2004 1.79 15,000 14,975
November 5, 2004 1.79 35,000 34,937
Coca-Cola Co.
October 15, 2004 1.54 100,000 99,936
October 26, 2004 1.55 30,000 29,965
November 9, 2004 1.64 50,000 49,908
November 30, 2004 1.77 20,000 19,939
DaimlerChrysler Revolving Auto Conduit LLC II
October 28, 2004 1.66 35,000 34,955
November 1, 2004 1.68 20,000 19,970
Danske Corp.
October 25, 2004 1.62 50,000 49,944
November 29, 2004 1.81 50,000 49,849
Dexia Delaware LLC
November 23, 2004 1.78 50,000 49,864
Diageo Capital PLC (1)
October 6, 2004 1.51 30,000 29,992
October 20, 2004 1.54 30,000 29,974
DuPont (E.I.) de Nemours & Co.
October 4, 2004 1.53 20,000 19,997
October 18, 2004 1.62 30,000 29,976
October 22, 2004 1.55 100,000 99,904
November 23, 2004 1.78 42,700 42,587
Electricite de France
November 5, 2004 1.63 50,000 49,917
Eli Lilly and Co. (1)
November 10, 2004 1.69 54,300 54,195
European Investment Bank
October 18, 2004 1.52 50,000 49,962
November 8, 2004 1.65 50,000 49,908
Export Development Canada
October 21, 2004 1.61 50,000 49,953
Exxon Project Investment Corp. (1)
October 29, 2004 1.73 50,000 49,930
FCAR Owner Trust I
October 13, 2004 1.56 30,000 29,982
October 18, 2004 1.58 30,500 30,476
November 16, 2004 1.75 50,000 49,883
November 17, 2004 1.75 20,000 19,952
November 19, 2004 1.76 20,000 19,950
Gannett Co. (1)
October 21, 2004 1.71 100,000 99,900
General Electric Capital Services Inc.
October 26, 2004 1.65 50,000 49,940
November 19, 2004 1.77 50,000 49,877
November 23, 2004 1.77 50,000 49,866
December 6, 2004 1.79 50,000 49,826
HBOS Treasury Services PLC
October 14, 2004 1.55 70,000 69,956
October 27, 2004 1.61 50,000 49,940
Hershey Foods Corp. (1)
October 22, 2004 1.52 40,000 39,962
Hewlett-Packard Co. (1)
October 29, 2004 1.70 85,000 84,884
HSBC USA Inc.
October 1, 2004 1.53 50,000 49,998
IBM Capital Inc. (1)
October 6, 2004 1.50 35,000 34,991
October 20, 2004 1.67 20,000 19,981
IBM Credit Corp.
October 19, 2004 1.52 30,000 29,975
J.P. Morgan Chase & Co.
October 22, 2004 1.57 50,000 49,952
October 28, 2004 1.72 25,000 24,967
November 5, 2004 1.75 50,000 49,913
KfW International Finance Inc. (1)
November 3, 2004 1.63 50,000 49,928
November 10, 2004 1.74 50,000 49,901
November 17, 2004 1.71 50,000 49,882
Kimberly-Clark Worldwide Inc. (1)
October 13, 2004 1.65 13,400 13,392
October 27, 2004 1.73 24,000 23,969
Lloyds TSB Bank PLC
October 18, 2004 1.56 50,000 49,961
October 20, 2004 1.56 50,000 49,957
Mont Blanc Capital Corp. (1)
October 12, 2004 1.59 30,000 29,984
October 27, 2004 1.79 20,000 19,973
Nestle Capital Corp. (1)
October 19, 2004 1.49 50,000 49,959
November 22, 2004 1.74 30,000 29,921
NetJets Inc. (1)
November 8, 2004 1.75 24,000 23,955
November 12, 2004 1.75 21,000 20,956
December 6, 2004 1.83 30,000 29,896
New Center Asset Trust
October 22, 2004 1.60 45,000 44,956
New Center Asset Trust Plus
October 5, 2004 1.53 35,000 34,992
November 10, 2004 1.73 50,000 49,902
Old Line Funding, LLC (1)
October 15, 2004 1.60 25,000 24,983
October 26, 2004 1.67 40,000 39,952
Park Avenue Receivables Co., LLC (1)
October 18, 2004 1.71 50,000 49,957
PepsiCo Inc. (1)
October 19, 2004 1.67 25,000 24,978
October 28, 2004 1.73 35,000 34,953
Pfizer Inc (1)
October 6, 2004 1.53 50,000 49,987
October 19, 2004 1.56 17,500 17,486
October 25, 2004 1.62 25,000 24,972
November 2, 2004 1.68 85,500 85,368
November 18, 2004 1.77 22,000 21,947
Private Export Funding Corp. (1)
October 21, 2004 1.73 36,000 35,964
Procter & Gamble Co. (1)
November 1, 2004 1.73 100,000 99,846
November 2, 2004 1.74 50,000 49,920
November 17, 2004 1.75 50,000 49,883
Ranger Funding Co. LLC (1)
October 19, 2004 1.72 40,000 39,964
November 4, 2004 1.79 80,000 79,859
Receivables Capital Co., LLC (1)
October 1, 2004 1.59 30,000 29,999
Shell Finance (U.K.) PLC
October 1, 2004 1.50 25,000 24,999
October 15, 2004 1.62 50,000 49,966
Societe Generale N.A. Inc.
October 4, 2004 1.51 50,000 49,991
November 18, 2004 1.78 40,000 39,904
Spintab AB (Swedmortgage)
October 5, 2004 1.50 50,000 49,990
November 9, 2004 1.73 50,000 49,903
November 12, 2004 1.73 50,000 49,897
Stadshypotek Delaware Inc. (1)
November 22, 2004 1.79 50,000 49,866
Svenska Handelsbanken Inc.
November 15, 2004 1.72 50,000 49,888
Three Pillars Funding, LLC (1)
October 1, 2004 1.61 50,000 49,998
October 20, 2004 1.77 40,000 39,961
October 26, 2004 1.78 35,000 34,955
Total Capital SA (1)
October 4, 2004 1.62 50,000 49,991
November 12, 2004 1.70 50,000 49,898
Toyota Motor Credit Corp.
October 5, 2004 1.52 50,000 49,989
October 26, 2004 1.67 30,000 29,964
November 19, 2004 1.78 40,000 39,902
Toyota Credit de Puerto Rico Corp.
October 26, 2004 1.76 30,000 29,962
Triple-A One Funding Corp. (1)
October 4, 2004 1.66 25,000 24,995
October 20, 2004 1.76 75,262 75,189
October 25, 2004 1.61 25,000 24,972
UBS Finance (Delaware) LLC
October 19, 2004 1.58 50,000 49,958
November 24, 2004 1.81 50,000 49,863
Unilever Capital Corp. (1)
November 15, 2004 1.75 50,000 49,888
Variable Funding Capital Corp. (1)
October 12, 2004 1.67 50,000 49,972
November 4, 2004 1.77 50,000 49,914
November 19, 2004 1.80 100,000 99,750
Wal-Mart Stores Inc. (1)
October 5, 2004 1.50 41,000 40,991
October 12, 2004 1.54 49,000 48,975
October 25, 2004 1.63 65,000 64,926
October 26, 2004 1.74 15,000 14,981
November 2, 2004 1.67 30,000 29,954
Total commercial paper 6,906,448
FEDERAL AGENCY DISCOUNT NOTES - 11.35%
Fannie Mae
October 13, 2004 1.50 50,000 49,972
October 14, 2004 1.51 50,000 49,970
November 8, 2004 1.69 50,000 49,908
November 9, 2004 1.73 50,000 49,904
Federal Farm Credit Banks
October 18, 2004 1.62 50,000 49,960
November 5, 2004 1.60 50,000 49,920
Federal Home Loan Bank
October 20, 2004 1.55 47,200 47,151
October 22, 2004 1.54 42,500 42,460
October 27, 2004 1.60 105,000 104,876
November 24, 2004 1.77 50,000 49,847
November 26, 2004 1.78 50,000 49,860
Freddie Mac
October 21, 2004 1.55 50,000 49,954
October 25, 2004 1.58 28,500 28,470
November 22, 2004 1.73 71,500 71,314
International Bank for Reconstruction and Development
October 12, 2004 1.52 50,000 49,975
November 19, 2004 1.71 50,000 49,881
November 29, 2004 1.73 50,000 49,851
Sallie Mae (2)
October 21, 2004 1.00 25,000 25,000
Tennessee Valley Authority
October 7, 2004 1.52 42,500 42,487
October 21, 2004 1.60 50,000 49,953
Total federal agency discount notes 1,010,713
U.S. TREASURIES - 7.14%
U.S. Treasury Bills
October 7, 2004 1.36 211,800 211,747
October 14, 2004 1.36 250,000 249,876
October 28, 2004 1.42 75,000 74,921
November 18, 2004 1.57 50,000 49,896
November 26, 2004 1.68 50,000 49,882
TOTAL U.S. TREASURIES 636,322
TOTAL INVESTMENT SECURITIES (cost: $8,903,584,000) 8,903,476
Other assets less liabilities 1,572
NET ASSETS $8,905,048
(1) Restricted security that can be resold only to institutional investors.
In practice, these securities are typically as liquid as unrestricted
securities in the portfolio. The total value of all such restricted
securities was $3,238,244,000, which represented 36.36% of the net assets
of the fund.
(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
at September 30, 2004 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market:
(cost: $8,903,584) $8,903,476
Cash 5,827
Receivables for:
Sales of fund's shares $57,682
Interest 716
Reimbursement of expenses from investment adviser 1,040 59,438
8,968,741
LIABILITIES:
Payables for:
Repurchases of fund's shares 60,639
Dividends on fund's shares 252
Services provided by affiliates 2,685
Deferred Trustees' compensation 49
Other fees and expenses 68 63,693
NET ASSETS AT SEPTEMBER 30, 2004 $8,905,048
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $8,905,158
Distributions in excess of net investment income (2)
Net unrealized depreciation (108)
NET ASSETS AT SEPTEMBER 30, 2004 $8,905,048
Shares of beneficial interest issued and outstanding - unlimited shares
authorized, 8,905,156 total shares outstanding
Net asset value
Net assets Shares outstanding per share
Class A $7,766,014 7,766,109 $1.00
Class B 156,709 156,711 1.00
Class C 104,107 104,108 1.00
Class F 38,787 38,788 1.00
Class 529-A 112,157 112,158 1.00
Class 529-B 2,007 2,006 1.00
Class 529-C 5,669 5,669 1.00
Class 529-E 5,291 5,291 1.00
Class 529-F 3,239 3,239 1.00
Class R-1 9,868 9,868 1.00
Class R-2 348,495 348,499 1.00
Class R-3 210,514 210,517 1.00
Class R-4 64,972 64,973 1.00
Class R-5 77,219 77,220 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the year ended September 30, 2004 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $96,564
Fees and expenses:
Investment advisory services $23,838
Distribution services 11,509
Transfer agent services 13,009
Administrative services 3,265
Reports to shareholders 386
Registration statement and prospectus 634
Postage, stationery and supplies 2,020
Trustees' compensation 56
Auditing and legal 132
Custodian 194
State and local taxes 13
Other 52
Total expenses before reimbursement 55,108
Reimbursement of expenses 25,046 30,062
Net investment income 66,502
NET UNREALIZED
DEPRECIATION ON INVESTMENTS (89)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $66,413
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2004 2003
OPERATIONS:
Net investment income $66,502 $91,848
Net unrealized depreciation
on investments (89) (4)
Net increase in net assets
resulting from operations 66,413 91,844
DIVIDENDS PAID OR ACCRUED TO
SHAREHOLDERS FROM NET INVESTMENT INCOME (66,502) (91,828)
CAPITAL SHARE TRANSACTIONS 174,556 32,809
TOTAL INCREASE IN NET ASSETS 174,467 32,825
NET ASSETS:
Beginning of year 8,730,581 8,697,756
End of year $8,905,048 $8,730,581
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Cash Management Trust of America (the "fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income on cash reserves, while
preserving capital and maintaining liquidity, through investments in
high-quality, short-term money market instruments.
The fund offers 14 share classes consisting of four retail share classes, five
CollegeAmerica(R) savings plan share classes and five retirement plan share
classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C,
529-E and 529-F) are sponsored by the Commonwealth of Virginia and can be
utilized to save for college education. The five retirement plan share classes
(R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry
any conversion rights. The fund's share classes are described below:
- ---------------------------------------------------------------------------------------------------------
Share class Initial sales charge Contingent deferred sales Conversion feature
charge upon redemption
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes A and 529-A None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes B and 529-B None Declines from 5% to zero Classes B and 529-B convert to
for redemptions within classes A and 529-A,
six years of purchase respectively, after eight years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class C None 1% for redemptions within Class C converts to Class F
one year of purchase after 10 years
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class 529-C None 1% for redemptions within None
one year of purchase
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Class 529-E None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes F and 529-F None None None
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Classes R-1, R-2, R-3, None None None
R-4 and R-5
- ---------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
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 purchased within 60 days to maturity are valued
at amortized cost, which approximates market value. The value of
short-term securities purchased with greater than 60 days to maturity
with 60 days or less remaining to maturity is determined based on the
market value on the 61st day. The ability of the issuers of the debt
securities held by the fund to meet their obligations may be affected
by economic developments in a specific industry, state or region.
Securities and other assets for which representative market quotations
are not readily available are fair valued as determined in good faith
under procedures adopted by authority of the fund's Board of Trustees.
Various factors may be reviewed in order to make a good faith
determination of a security's fair value. These factors include, but
are not limited to, the type and cost of the security; contractual or
legal restrictions on resale of the security; relevant financial or
business developments of the issuer; actively traded similar or
related securities; conversion or exchange rights on the security;
related corporate actions; significant events occurring after the
close of trading in the security; and changes in overall market
conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) and unrealized gains and losses are
allocated daily among the various share classes based on their
relative net assets. Class-specific fees and expenses, such as
distribution, administrative and shareholder services, are charged
directly to the respective share class.
DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are
declared daily after the determination of the fund's net investment
income and are paid to shareholders monthly.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONs
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 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 September 30, 2004, the cost of investment
securities for federal income tax purposes was $8,903,584,000.
During the year ended September 30, 2004, the fund reclassified $2,000 from
distributions in excess of net investment income to additional paid-in capital
to align financial reporting with tax reporting.
As of September 30, 2004, the components of distributable earnings on a tax
basis were as follows (dollars in thousands):
Undistributed net investment income $299
Gross unrealized appreciation on investment securities 34
Gross unrealized depreciation on investment securities (142)
Net unrealized depreciation on investment securities (108)
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
Share class Year ended September 30, 2004 Year ended September 30, 2003
Class A $ 64,312 $ 90,058
Class B 173 252
Class C 86 127
Class F 90 67
Class 529-A 482 425
Class 529-B 1 1
Class 529-C 5 3
Class 529-E 7 7
Class 529-F 7 4
Class R-1 10 5
Class R-2 294 139
Class R-3 292 167
Class R-4 217 96
Class R-5 526 477
Total $ 66,502 $ 91,828
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.320% on the first $1 billion
of daily net assets and decreasing to 0.270% on such assets in excess of $2
billion. For the year ended September 30, 2004, the investment advisory services
fee was $23,838,000, 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. To the extent that
management fees were reimbursed, they were reimbursed similarly for all share
classes of the fund. During the year ended September 30, 2004, these
reimbursements totaled $21,909,000. 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 year ended September
30, 2004, CRMC agreed to pay a portion of these fees for classes R-1,
R-2 and R-3. For the year ended September 30, 2004, the total fees
paid by CRMC were $891,000. Each 529 share class is subject to an
additional annual administrative services fee of 0.10% of its
respective average daily net assets; this fee is payable to the
Commonwealth of Virginia for the maintenance of the CollegeAmerica
plan. Although these amounts are included with administrative services
fees in the accompanying financial statements, the Commonwealth of
Virginia is not considered a related party. Administrative services
fees are presented gross of any payments made by CRMC.
Expenses under the agreements described above for the year ended
September 30, 2004, were as follows (dollars in thousands):
--------------------------------------------------------------------------------------------------------------
Share class Distribution Transfer agent Administrative services
services services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
CRMC Transfer agent Commonwealth of
administrative services Virginia
services administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class A $5,951 $12,829 Not applicable Not applicable Not applicable
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class B 1,334 180 Not applicable Not applicable Not applicable
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class C 826 Included $124 $34 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class F 37 Included 22 3 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-A 60 Included 152 41 $102
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-B 12 Included 2 1 1
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-C 44 Included 7 2 4
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-E 24 Included 7 2 5
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class 529-F 6 Included 4 1 3
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-1 94 Included 14 10 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-2 2,115 Included 423 1,575 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-3 889 Included 281 287 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-4 117 Included 70 5 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Class R-5 Not applicable Included 70 13 Not applicable
in
administrative
services
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Total $11,509 $13,009 $1,176 $1,974 $115
--------------------------------------------------------------------------------------------------------------
Due to lower short-term interest rates, CRMC agreed to pay a portion
of the class-specific fees and expenses. For the year ended September
30, 2004, the total fees paid by CRMC for classes B, C, 529-B, 529-C,
529-E, 529-F, R-1, R-2 and R-3 were $2,246,000.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to
defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease in the value
of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees received any compensation directly from the fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Share class Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ 13,520,809 13,520,809 $ 61,845 61,845
Class B 154,993 154,993 157 157
Class C 192,284 192,284 77 77
Class F 103,416 103,416 82 82
Class 529-A 108,238 108,238 475 475
Class 529-B 2,040 2,040 1 1
Class 529-C 5,325 5,325 4 4
Class 529-E 4,489 4,489 7 7
Class 529-F 3,316 3,316 7 7
Class R-1 30,040 30,040 9 9
Class R-2 1,008,066 1,008,066 279 279
Class R-3 546,922 546,922 282 282
Class R-4 163,157 163,157 208 208
Class R-5 184,623 184,623 497 497
Total net increase
(decrease) $ 16,027,718 16,027,718 $ 63,930 63,930
Year ended September 30, 2003
Class A $ 15,232,335 15,232,335 $ 86,266 86,266
Class B 233,546 233,546 232 232
Class C 470,206 470,206 112 112
Class F 130,042 130,042 36 36
Class 529-A 115,515 115,515 416 416
Class 529-B 1,235 1,235 1 1
Class 529-C 4,360 4,360 3 3
Class 529-E 5,577 5,577 6 6
Class 529-F 3,376 3,376 4 4
Class R-1 17,203 17,203 5 5
Class R-2 852,833 852,833 124 124
Class R-3 567,375 567,375 155 155
Class R-4 62,875 62,875 92 92
Class R-5 116,674 116,674 447 447
Total net increase
(decrease) $ 17,813,152 17,813,152 $ 87,899 87,899
Share class Repurchases(1) Net (decrease) increase
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ (13,726,229) (13,726,229) $ (143,575) (143,575)
Class B (171,364) (171,364) (16,214) (16,214)
Class C (176,973) (176,973) 15,388 15,388
Class F (72,052) (72,052) 31,446 31,446
Class 529-A (85,852) (85,852) 22,861 22,861
Class 529-B (1,117) (1,117) 924 924
Class 529-C (3,117) (3,117) 2,212 2,212
Class 529-E (3,819) (3,819) 677 677
Class 529-F (2,402) (2,402) 921 921
Class R-1 (27,861) (27,861) 2,188 2,188
Class R-2 (865,474) (865,474) 142,871 142,871
Class R-3 (474,880) (474,880) 72,324 72,324
Class R-4 (124,548) (124,548) 38,817 38,817
Class R-5 (181,404) (181,404) 3,716 3,716
Total net increase
(decrease) $ (15,917,092) (15,917,092) $ 174,556 174,556
Year ended September 30, 2003
Class A $ (15,714,246) (15,714,246) $ (395,645) (395,645)
Class B (218,968) (218,968) 14,810 14,810
Class C (481,173) (481,173) (10,855) (10,855)
Class F (133,112) (133,112) (3,034) (3,034)
Class 529-A (60,929) (60,929) 55,002 55,002
Class 529-B (517) (517) 719 719
Class 529-C (1,894) (1,894) 2,469 2,469
Class 529-E (2,336) (2,336) 3,247 3,247
Class 529-F (1,063) (1,063) 2,317 2,317
Class R-1 (10,483) (10,483) 6,725 6,725
Class R-2 (669,787) (669,787) 183,170 183,170
Class R-3 (444,141) (444,141) 123,389 123,389
Class R-4 (37,312) (37,312) 25,655 25,655
Class R-5 (92,281) (92,281) 24,840 24,840
Total net increase
(decrease) $ (17,868,242) (17,868,242) $ 32,809 32,809
(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
year ended September 30, 2004, the custodian fee of $194,000 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
of period income(2) income of period
Class A:
Year ended 9/30/2004 $1.00 $.008 $(.008) $1.00
Year ended 9/30/2003 1.00 .011 (.011) 1.00
Year ended 9/30/2002 1.00 .013 (.013) 1.00
Year ended 9/30/2001 1.00 .045 (.045) 1.00
Year ended 9/30/2000 1.00 .055 (.055) 1.00
Class B:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Year ended 9/30/2002 1.00 .005 (.005) 1.00
Year ended 9/30/2001 1.00 .037 (.037) 1.00
Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00
Class C:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Year ended 9/30/2002 1.00 .004 (.004) 1.00
Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00
Class F:
Year ended 9/30/2004 1.00 .004 (.004) 1.00
Year ended 9/30/2003 1.00 .006 (.006) 1.00
Year ended 9/30/2002 1.00 .011 (.011) 1.00
Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00
Class 529-A:
Year ended 9/30/2004 1.00 .005 (.005) 1.00
Year ended 9/30/2003 1.00 .007 (.007) 1.00
Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00
Class 529-B:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class 529-C:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Class 529-E:
Year ended 9/30/2004 1.00 .002 (.002) 1.00
Year ended 9/30/2003 1.00 .002 (.002) 1.00
Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00
Class 529-F:
Year ended 9/30/2004 1.00 .003 (.003) 1.00
Year ended 9/30/2003 1.00 .004 (.004) 1.00
Period from 9/16/2002 to 9/30/2002 1.00 - (7) - (7) 1.00
FINANCIAL HIGHLIGHTS (1) (continued)
Net asset Dividends
value, Net from net Net asset
beginning investment investment value, end
of period income(2) income of period
Class R-1:
Year ended 9/30/2004 $1.00 $.001 $(.001) $1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-2:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-3:
Year ended 9/30/2004 1.00 .002 (.002) 1.00
Year ended 9/30/2003 1.00 .002 (.002) 1.00
Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Class R-4:
Year ended 9/30/2004 1.00 .004 (.004) 1.00
Year ended 9/30/2003 1.00 .006 (.006) 1.00
Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Class R-5:
Year ended 9/30/2004 1.00 .007 (.007) 1.00
Year ended 9/30/2003 1.00 .009 (.009) 1.00
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00
FINANCIAL HIGHLIGHTS (1)
Ratio of expenses Ratio of expenses Ratio of
Net assets, to average net to average net net income
Total end of period assets before assets after to average
return (3) (in millions) reimbursements reimbursements (4) net assets
Class A:
Year ended 9/30/2004 .84% $7,766 .57% .28% .84%
Year ended 9/30/2003 1.05 7,910 .55 .23 1.05
Year ended 9/30/2002 1.35 8,305 .59 .59 1.33
Year ended 9/30/2001 4.63 7,075 .59 .59 4.48
Year ended 9/30/2000 5.66 5,417 .61 .61 5.53
Class B:
Year ended 9/30/2004 .12 157 1.34 1.02 .12
Year ended 9/30/2003 .13 173 1.38 1.14 .14
Year ended 9/30/2002 .53 158 1.40 1.40 .47
Year ended 9/30/2001 3.75 46 1.41 1.41 3.01
Period from 3/15/2000 to 9/30/2000 2.73 1 1.43 (5) 1.43 (5) 5.21 (5)
Class C:
Year ended 9/30/2004 .10 104 1.51 1.05 .10
Year ended 9/30/2003 .12 89 1.55 1.16 .12
Year ended 9/30/2002 .40 100 1.55 1.51 .31
Period from 3/16/2001 to 9/30/2001 1.40 13 1.55 (5) 1.55 (5) 2.05 (5)
Class F:
Year ended 9/30/2004 .41 39 .72 .71 .61
Year ended 9/30/2003 .55 7 .73 .73 .58
Year ended 9/30/2002 1.13 10 .77 .77 1.11
Period from 3/26/2001 to 9/30/2001 1.71 4 .80 (5) .80 (5) 3.09 (5)
Class 529-A:
Year ended 9/30/2004 .47 112 .67 .66 .48
Year ended 9/30/2003 .66 89 .62 .62 .61
Period from 2/15/2002 to 9/30/2002 .73 34 .60 (5) .60 (5) 1.16 (5)
Class 529-B:
Year ended 9/30/2004 .10 2 1.53 1.06 .10
Year ended 9/30/2003 .12 1 1.52 1.13 .12
Period from 6/7/2002 to 9/30/2002 .09 - (6) .47 .47 .08
Class 529-C:
Year ended 9/30/2004 .10 6 1.63 1.05 .10
Year ended 9/30/2003 .12 3 1.62 1.11 .11
Period from 4/2/2002 to 9/30/2002 .15 1 .79 .75 .12
Class 529-E:
Year ended 9/30/2004 .15 5 1.11 .98 .15
Year ended 9/30/2003 .22 5 1.11 1.05 .17
Period from 3/11/2002 to 9/30/2002 .39 1 1.09 (5) 1.09 (5) .66 (5)
Class 529-F:
Year ended 9/30/2004 .28 3 .86 .85 .30
Year ended 9/30/2003 .43 2 .85 .85 .33
Period from 9/16/2002 to 9/30/2002 .04 - (6) .03 .03 .04
FINANCIAL HIGHLIGHTS (1) (continued)
Ratio of expenses Ratio of expenses Ratio of
Net assets, to average net to average net net income
Total end of period assets before assets after to average
return (in millions) reimbursements reimbursements (4) net assets
Class R-1:
Year ended 9/30/2004 .10% $10 1.56% 1.03% .10%
Year ended 9/30/2003 .12 8 1.61 1.08 .10
Period from 5/29/2002 to 9/30/2002 .10 1 .71 .51 .09
Class R-2:
Year ended 9/30/2004 .11 348 1.76 1.03 .11
Year ended 9/30/2003 .12 206 1.68 1.08 .11
Period from 5/21/2002 to 9/30/2002 .11 23 .57 .52 .11
Class R-3:
Year ended 9/30/2004 .16 211 1.12 .97 .16
Year ended 9/30/2003 .23 138 1.10 1.03 .17
Period from 6/4/2002 to 9/30/2002 .22 15 .37 .34 .22
Class R-4:
Year ended 9/30/2004 .43 65 .71 .70 .46
Year ended 9/30/2003 .55 26 .72 .72 .48
Period from 6/27/2002 to 9/30/2002 .23 1 .30 .19 .27
Class R-5:
Year ended 9/30/2004 .72 77 .42 .40 .75
Year ended 9/30/2003 .87 74 .41 .41 .84
Period from 5/15/2002 to 9/30/2002 .50 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) Based on average shares outstanding.
(3) Total returns exclude all sales charges, including contingent deferred
sales charges.
(4) The ratios in this column reflect the impact, if any, of certain
reimbursements from CRMC. During some of the periods shown, CRMC
reimbursed expenses, as provided by the Investment Advisory and Service
Agreement. During the start-up period for the retirement plan share classes
(except Class R-5), CRMC agreed to pay a portion of the fees related to
transfer agent services. In addition, during some of the periods shown, due
to lower short-term interest rates, CRMC agreed to pay a portion of the
class-specific fees and expenses for some of the share classes.
(5) Annualized.
(6) Amount less than $1 million.
(7) Amount less than $.001.
See Notes to Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE CASH MANAGEMENT TRUST OF
AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The Cash Management Trust of America (the
"Fund") at September 30, 2004, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States), which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at September 30, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
October 29, 2004
TAX INFORMATION (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year. The information below is provided for the
fund's fiscal year ending September 30, 2004.
Certain states may exempt from income taxation that portion of dividends paid by
the fund from ordinary income that was derived from direct U.S. government
obligations. For purposes of computing this exclusion, $8,877,000 of the
dividends paid by the fund from ordinary income earned during the fiscal year
were derived from interest on direct U.S. government obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
OTHER SHARE CLASS RESULTS (unaudited)
CLASS B, CLASS C, CLASS F AND CLASS 529
Figures shown are past results and are not predictive of results in future
periods. Current and future results may be lower or higher than those shown.
Share prices and returns will vary, so investors may lose money. For the most
current information and month-end results, visit americanfunds.com.
Returns for periods ended September 30, 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 -4.88% +1.16%(1)
Not reflecting CDSC +0.12% +1.58%(1)
CLASS C SHARES
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase -0.90% +0.57%(2)
Not reflecting CDSC +0.10% +0.57%(2)
CLASS F SHARES(3)
Not reflecting annual asset-based fee charged by sponsoring firm +0.41% +1.08%(4)
CLASS 529-A SHARES +0.47% +0.71%(5)
CLASS 529-B SHARES
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase -4.90% -1.61%(6)
Not reflecting CDSC +0.10% +0.14%(6)
CLASS 529-C SHARES
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase -0.90% +0.15%(7)
Not reflecting CDSC +0.10% +0.15%(7)
CLASS 529-E SHARES(3) +0.15% +0.30%(8)
CLASS 529-F SHARES(3)
Not reflecting annual asset-based fee charged by sponsoring firm +0.28% +0.37%(9)
(1) Average annual total return from March 15, 2000, when Class B shares were
first sold.
(2) Average annual total return from March 16, 2001, when Class C shares were
first sold.
(3) These shares are sold without any initial or contingent deferred sales
charge.
(4) Average annual total return from March 26, 2001, when Class F shares were
first sold.
(5) Average annual total return from February 15, 2002, when Class 529-A shares
were first sold.
(6) Average annual total return from June 7, 2002, when Class 529-B shares were
first sold.
(7) Average annual total return from April 2, 2002, when Class 529-C shares
were first sold.
(8) Average annual total return from March 11, 2002, when Class 529-E shares
were first sold.
(9) Average annual total return from September 16, 2002, when Class 529-F
shares were first sold.
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (April 1,
2004 through September 30, 2004).
ACTUAL EXPENSES:
The first line of each share class in the table on the next page provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses paid during period" to estimate the expenses you paid on your account
during this period. There are some account fees that are charged to certain
types of accounts, such as Individual Retirement Accounts and CollegeAmerica
accounts (generally, a $10 fee is charged to set up the account and an
additional $10 fee is charged to the account annually) that would increase the
amount of expenses paid on your account. In addition, retirement plan
participants may be subject to certain fees charged by the plan sponsor, and
Class F and Class 529-F shareholders may be subject to fees charged by financial
intermediaries, typically ranging from 0.50% to 3.00% of assets annually
depending on services offered. You may use the information in the table on the
next page to estimate the impact of these fees by adding the amount of the fees
to the number in the first line for your share class under the heading entitled
"Expenses paid during period," and subtracting the amount of the fees from the
number in the first line under the heading entitled "Ending account value."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table on the next page provides
information about hypothetical account values and hypothetical expenses based on
the actual expense ratio for the share class and an assumed rate of return of
5.00% per year before expenses, which is not the actual return of the share
class. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the fund and
other funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee
is charged to set up the account and an additional $10 fee is charged to the
account annually) that would increase the amount of expenses paid on your
account. In addition, retirement plan participants may be subject to certain
fees charged by the plan sponsor, and Class F and Class 529-F shareholders may
be subject to fees charged by financial intermediaries, typically ranging from
0.50% to 3.00% of assets annually depending on services offered. You may use the
information in the table on the next page to estimate the impact of these fees
by adding the amount of the fees to the number in the second line for your share
class under the heading entitled "Expenses paid during period," and subtracting
the amount of the fees from the number in the second line under the heading
entitled "Ending account value."
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning account Ending account Expenses paid Annualized
value 4/1/2004 value 9/30/2004 during period(1) expense ratio
Class A -- actual return $ 1,000.00 $1,004.90 $1.21 .24%
Class A -- assumed 5% return 1,000.00 1,023.87 1.22 .24
Class B -- actual return 1,000.00 1,000.65 5.47 1.09
Class B -- assumed 5% return 1,000.00 1,019.60 5.52 1.09
Class C -- actual return 1,000.00 1,000.53 5.67 1.13
Class C -- assumed 5% return 1,000.00 1,019.40 5.72 1.13
Class F -- actual return 1,000.00 1,002.45 3.56 .71
Class F -- assumed 5% return 1,000.00 1,021.51 3.60 .71
Class 529-A -- actual return 1,000.00 1,002.70 3.41 .68
Class 529-A -- assumed 5% return 1,000.00 1,021.66 3.45 .68
Class 529-B -- actual return 1,000.00 1,000.53 5.72 1.14
Class 529-B -- assumed 5% return 1,000.00 1,019.35 5.77 1.14
Class 529-C -- actual return 1,000.00 1,000.51 5.67 1.13
Class 529-C -- assumed 5% return 1,000.00 1,019.40 5.72 1.13
Class 529-E -- actual return 1,000.00 1,001.00 5.12 1.02
Class 529-E -- assumed 5% return 1,000.00 1,019.95 5.16 1.02
Class 529-F -- actual return 1,000.00 1,001.78 4.32 .86
Class 529-F -- assumed 5% return 1,000.00 1,020.76 4.36 .86
Class R-1 -- actual return 1,000.00 1,000.53 5.57 1.11
Class R-1 -- assumed 5% return 1,000.00 1,019.50 5.62 1.11
Class R-2 -- actual return 1,000.00 1,000.55 5.62 1.12
Class R-2 -- assumed 5% return 1,000.00 1,019.45 5.67 1.12
Class R-3 -- actual return 1,000.00 1,001.05 5.07 1.01
Class R-3 -- assumed 5% return 1,000.00 1,020.00 5.11 1.01
Class R-4 -- actual return 1,000.00 1,002.55 3.56 .71
Class R-4 -- assumed 5% return 1,000.00 1,021.51 3.60 .71
Class R-5 -- actual return 1,000.00 1,004.01 2.06 .41
Class R-5 -- assumed 5% return 1,000.00 1,023.01 2.08 .41
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (183) and divided by 365 (to reflect the one-half year period).
THE U.S. TREASURY MONEY FUND OF AMERICA
INVESTMENT PORTFOLIO
September 30, 2004
Principal Market
Yield at amount value
SHORT-TERM SECURITIES - 100.26% acquisition (000) (000)
U.S. Treasuries - 100.26%
U.S. Treasury Bills 10-7-04 1.29%-1.56% $94,810 $94,786
U.S. Treasury Bills 10-14-04 1.39%-1.57% 28,700 28,685
U.S. Treasury Bills 10-21-04 1.38%-1.43% 72,110 72,055
U.S. Treasury Bills 10-28-04 1.40%-1.58% 57,470 57,410
U.S. Treasury Bills 11-4-04 1.47%-1.48% 72,100 72,003
U.S. Treasury Bills 11-12-04 1.47%-1.49% 6,755 6,743
U.S. Treasury Bills 12-2-04 1.62%-1.64% 76,600 76,394
U.S. Treasury Bills 12-9-04 1.63%-1.66% 123,750 123,371
U.S. Treasury Bills 12-16-04 1.66% 50,000 49,833
TOTAL INVESTMENT SECURITIES (cost: $581,244,000) 581,280
Other assets less liabilities (1,519)
NET ASSETS $579,761
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
at September 30, 2004 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market:
(cost: $581,244) $581,280
Cash 732
Receivables for sales of fund's shares 619
582,631
LIABILITIES:
Payables for:
Repurchases of fund's shares $2,518
Dividends on fund's shares 14
Investment advisory services 133
Services provided by affiliates 165
Deferred Trustees' compensation 21
Other fees and expenses 19 2,870
NET ASSETS AT SEPTEMBER 30, 2004 $579,761
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $579,726
Distributions in excess of net investment income (1)
Net unrealized appreciation 36
NET ASSETS AT SEPTEMBER 30, 2004 $579,761
Shares of beneficial interest issued and outstanding - unlimited shares
authorized, 579,725 total shares outstanding
Net assets Shares outstanding Net asset value per share
Class A $532,287 532,254 $1.00
Class R-1 1,076 1,076 1.00
Class R-2 21,978 21,977 1.00
Class R-3 15,736 15,734 1.00
Class R-4 2,185 2,185 1.00
Class R-5 6,499 6,499 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the year ended September 30, 2004 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $5,957
Fees and expenses:
Investment advisory services $1,782
Distribution services 779
Transfer agent services 812
Administrative services 183
Reports to shareholders 25
Registration statement and prospectus 90
Postage, stationery and supplies 143
Trustees' compensation 26
Auditing and legal 76
Custodian 20
State and local taxes 8
Other 3
Total expenses before reimbursement/waiver 3,947
Reimbursement/waiver of expenses 210 3,737
Net investment income 2,220
NET UNREALIZED APPRECIATION ON INVESTMENTS 7
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,227
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2004 2003
OPERATIONS:
Net investment income $2,220 $4,537
Net unrealized appreciation
on investments 7 13
Net increase in net assets
resulting from operations 2,227 4,550
DIVIDENDS PAID OR ACCRUED TO
SHAREHOLDERS FROM NET INVESTMENT INCOME: (2,219) (4,538)
CAPITAL SHARE TRANSACTIONS (83,761) (24,951)
TOTAL DECREASE IN NET ASSETS (83,753) (24,939)
NET ASSETS:
Beginning of year 663,514 688,453
End of year $579,761 $663,514
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The U.S. Treasury Money Fund of America (the "fund") is
registered under the Investment Company Act of 1940 as an open-end, diversified
management investment company. The fund seeks to provide income on cash
reserves, while preserving capital and maintaining liquidity, through
investments in U.S. Treasury securities maturing in one year or less.
The fund offers six share classes consisting of one retail share class (Class A)
and five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5). All share
classes are sold without any sales charges and do not carry any conversion
rights.
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
NET ASSET VALUE - The fund values its shares in accordance with
Securities and Exchange Commission ("SEC") rules, using the
penny-rounding method, which permits the fund to maintain a constant
net asset value of $1.00 per share.
SECURITY VALUATION - Fixed-income securities are valued at prices
obtained from an independent pricing service, when such prices are
available. However, where the investment adviser deems it appropriate,
such securities will be valued at the mean quoted bid and asked prices
or at prices for securities of comparable maturity, quality and type.
Short-term securities purchased within 60 days to maturity are valued
at amortized cost, which approximates market value. The value of
short-term securities purchased with greater than 60 days to maturity
with 60 days or less remaining to maturity is determined based on the
market value on the 61st day. Securities and other assets for which
representative market quotations are not readily available are fair
valued as determined in good faith under procedures adopted by
authority of the fund's Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) and unrealized gains and losses are
allocated daily among the various share classes based on their
relative net assets. Class-specific fees and expenses, such as
distribution, administrative and shareholder services, are charged
directly to the respective share class.
DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are
declared daily after the determination of the fund's net investment
income and are paid to shareholders monthly.
2. FEDERAL INCOME TAXATION AND DISTRIBUTIONs
The fund complies with the requirements under Subchapter M of the Internal
Revenue Code applicable to mutual funds and intends to distribute substantially
all of its net taxable income each year. The fund is not subject to income taxes
to the extent such distributions are made.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 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 September 30, 2004, the cost of investment
securities for federal income tax purposes was $581,244,000.
As of September 30, 2004, the components of distributable earnings on a tax
basis were as follows (dollars in thousands):
Undistributed net investment income $34
Gross unrealized appreciation on investment securities 36
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
Share class Year ended September 30, 2004 Year ended September 30, 2003
Class A $ 2,147 $ 4,486
Class R-1 1 -*
Class R-2 19 10
Class R-3 16 8
Class R-4 5 4
Class R-5 31 30
Total $ 2,219 $ 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. During the year ended September 30,
2004, CRMC reduced investment advisory services fees by $7,000. As a result, the
fee shown on the accompanying financial statements of $1,782,000, which was
equivalent to an annualized rate of 0.300%, was reduced to $1,775,000, or 0.299%
of average daily net assets.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted plans of distribution for
all share classes, except Class R-5. Under the plans, the Board of
Trustees approves certain categories of expenses that are used to
finance activities primarily intended to sell fund shares. The plans
provide for annual expenses, based on a percentage of average daily
net assets, ranging from 0.15% to 1.00% as noted below. In some cases,
the Board of Trustees has approved expense amounts lower than plan
limits. All share classes may use a portion (0.15% for Class A and
0.25% for all other share classes) of average daily net assets to pay
service fees, or to compensate AFD for paying service fees, to firms
that have entered into agreements with AFD for providing certain
shareholder services. Expenses in excess of these amounts, up to
approved limits, may be used to compensate dealers and wholesalers for
shares sold.
------------------------------------------------ ----------------------------- -----------------------------
Share class Currently approved limits Plan limits
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class A 0.15% 0.15%
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-1 1.00 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-2 0.75 1.00
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-3 0.50 0.75
------------------------------------------------ ----------------------------- -----------------------------
------------------------------------------------ ----------------------------- -----------------------------
Class R-4 0.25 0.50
------------------------------------------------ ----------------------------- -----------------------------
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for Class A shares. Under this agreement, this share class
compensates AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to all other
share classes from the administrative services fees paid to CRMC
described 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 year ended September 30,
2004, CRMC agreed to pay a portion of these fees for classes R-1, R-2
and R-3. For the year ended September 30, 2004, the total fees paid by
CRMC were $59,000. Administrative services fees are presented gross of
any payments made by CRMC.
Expenses under the agreements described above for the year ended
September 30, 2004, were as follows (dollars in thousands):
-----------------------------------------------------------------------------------------
Share class Distribution Transfer agent Administrative services
services services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
CRMC Transfer agent
administrative services
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class A $564 $812 Not applicable Not applicable
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-1 7 Included in $1 $1
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-2 139 Included in 28 106
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-3 63 Included in 19 19
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-4 6 Included in 3 1
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Class R-5 Not applicable Included in 5 -*
administrative
services
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Total $779 $812 $56 $127
-----------------------------------------------------------------------------------------
* Amount less than one thousand.
Due to lower short-term interest rates, CRMC agreed to pay a portion
of the class-specific fees and expenses. For the year ended September
30, 2004, the total fees paid by CRMC for classes R-1, R-2, R-3 and
R-4 were $144,000.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to
defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease in the value
of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees received any compensation directly from the fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Share class Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ 432,833 432,833 $ 2,052 2,052
Class R-1 1,164 1,164 -* -*
Class R-2 43,831 43,831 18 18
Class R-3 20,221 20,221 16 16
Class R-4 5,349 5,349 5 5
Class R-5 12,974 12,974 19 19
Total net increase
(decrease) $ 516,372 516,372 $ 2,110 2,110
Year ended September 30, 2003
Class A $ 778,494 778,494 $ 4,259 4,259
Class R-1 382 382 -* -*
Class R-2 49,988 49,988 9 9
Class R-3 35,967 35,967 6 6
Class R-4 6,541 6,541 4 4
Class R-5 6,797 6,797 15 15
Total net increase
(decrease) $ 878,169 878,169 $ 4,293 4,293
Share class Repurchases(1) Net (decrease) increase
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ (533,936) (533,936) $ (99,051) (99,051)
Class R-1 (419) (419) 745 745
Class R-2 (36,449) (36,449) 7,400 7,400
Class R-3 (15,625) (15,625) 4,612 4,612
Class R-4 (4,662) (4,662) 692 692
Class R-5 (11,152) (11,152) 1,841 1,841
Total net increase
(decrease) $ (602,243) (602,243) $ (83,761) (83,761)
Year ended September 30, 2003
Class A $ (834,303) (834,303) $ (51,550) (51,550)
Class R-1 (270) (270) 112 112
Class R-2 (36,844) (36,844) 13,153 13,153
Class R-3 (24,898) (24,898) 11,075 11,075
Class R-4 (5,101) (5,101) 1,444 1,444
Class R-5 (5,997) (5,997) 815 815
Total net increase
(decrease) $ (907,413) (907,413) $ (24,951) (24,951)
* 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
year ended September 30, 2004, the custodian fee of $20,000 included $2,000 that
was offset by this reduction, rather than paid in cash.
FINANCIAL HIGHLIGHTS (1)
Net asset Dividends
value, Net from net Net asset
beginning investment investment value, end
of period income (2) income of period
Class A:
Year ended 9/30/2004 $1.00 $.004 $(.004) $1.00
Year ended 9/30/2003 1.00 .006 (.006) 1.00
Year ended 9/30/2002 1.00 .013 (.013) 1.00
Year ended 9/30/2001 1.00 .042 (.042) 1.00
Year ended 9/30/2000 1.00 .049 (.049) 1.00
Class R-1:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-2:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .001 (.001) 1.00
Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-3:
Year ended 9/30/2004 1.00 .001 (.001) 1.00
Year ended 9/30/2003 1.00 .002 (.002) 1.00
Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00
Class R-4:
Year ended 9/30/2004 1.00 .002 (.002) 1.00
Year ended 9/30/2003 1.00 .004 (.004) 1.00
Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Class R-5:
Year ended 9/30/2004 1.00 .006 (.006) 1.00
Year ended 9/30/2003 1.00 .008 (.008) 1.00
Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00
Ratio of expenses Ratio of expenses Ratio of
Net assets, to average net assets to average net assets net income
Total end of period before reimbursement/ after reimbursement/ to average
return (in millions) waiver waiver ( net assets
Class A:
Year ended 9/30/2004 .39% $532 .62% .61% .39%
Year ended 9/30/2003 .63 631 .58 .58 .63
Year ended 9/30/2002 1.29 683 .63 .63 1.27
Year ended 9/30/2001 4.27 489 .66 .66 4.12
Year ended 9/30/2000 5.01 369 .62 .62 4.81
Class R-1:
Year ended 9/30/2004 .10 1 1.63 .94 .10
Year ended 9/30/2003 .12 - (4) 1.91 1.08 .12
Period from 7/12/2002 to 9/30/2002 .11 - (4) .54 .32 .05
Class R-2:
Year ended 9/30/2004 .10 22 1.81 .92 .10
Year ended 9/30/2003 .12 15 1.74 1.02 .10
Period from 6/11/2002 to 9/30/2002 .08 1 .50 .44 .08
Class R-3:
Year ended 9/30/2004 .12 16 1.14 .89 .13
Year ended 9/30/2003 .18 11 1.17 .99 .11
Period from 8/16/2002 to 9/30/2002 .07 - (4) .20 .13 .07
Class R-4:
Year ended 9/30/2004 .24 2 .77 .76 .23
Year ended 9/30/2003 .43 2 .79 .77 .36
Period from 8/2/2002 to 9/30/2002 .17 - (4) .33 .12 .15
Class R-5:
Year ended 9/30/2004 .55 7 .45 .45 .57
Year ended 9/30/2003 .75 5 .46 .46 .73
Period from 5/15/2002 to 9/30/2002 .47 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) Based on average shares outstanding.
(3) The ratios in this column reflect the impact, if any, of certain
reimbursements/waivers from CRMC. During the year ended 9/30/2004,
CRMC reduced fees for investment advisory services for all share classes.
During the start-up period for the retirement plan share classes (except
Class R-5), CRMC agreed to pay a portion of the fees related to transfer
agent services. In addition, during some of the periods shown, due to
lower short-term interest rates, CRMC agreed to pay a portion of the
class-specific fees and expenses for some of the share classes.
(4) Amount less than $1 million.
See Notes to Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE U.S. TREASURY MONEY FUND OF
AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The U.S. Treasury Money Fund of America (the
"Fund") at September 30, 2004, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States), which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at September 30, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLC
Los Angeles, California
October 29, 2004
TAX INFORMATION (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year. The information below is provided for the
fund's fiscal year ending September 30, 2004.
Certain states may exempt from income taxation that portion of dividends paid by
the fund from ordinary income that was derived from direct U.S. government
obligations. For purposes of computing this exclusion, all of the dividends paid
by the fund from ordinary income earned during the fiscal year were derived from
interest on direct U.S. government obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many retirement plan trusts may need this information for their annual
information reporting.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (April 1,
2004 through September 30, 2004).
ACTUAL EXPENSES:
The first line of each share class in the table on the next page provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses paid during period" to estimate the expenses you paid on your account
during this period. There are some account fees that are charged to certain
types of accounts, such as Individual Retirement Accounts (generally, a $10 fee
is charged to set up the account and an additional $10 fee is charged to the
account annually) that would increase the amount of expenses paid on your
account. In addition, retirement plan participants may be subject to certain
fees charged by the plan sponsor. You may use the information in the table on
the next page to estimate the impact of these fees by adding the amount of the
fees to the number in the first line for your share class under the heading
entitled "Expenses paid during period," and subtracting the amount of the fees
from the number in the first line under the heading entitled "Ending account
value."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table on the next page provides
information about hypothetical account values and hypothetical expenses based on
the actual expense ratio for the share class and an assumed rate of return of
5.00% per year before expenses, which is not the actual return of the share
class. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the fund and
other funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor.
You may use the information in the table on the next page to estimate the impact
of these fees by adding the amount of the fees to the number in the second line
for your share class under the heading entitled "Expenses paid during period,"
and subtracting the amount of the fees from the number in the second line under
the heading entitled "Ending account value."
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning account Ending account Expenses paid Annualized
value 4/1/2004 value 9/30/2004 during period(1) expense ratio
Class A -- actual return $ 1,000.00 $1,002.50 $3.01 .60%
Class A -- assumed 5% return 1,000.00 1,022.06 3.04 .60
Class R-1 -- actual return 1,000.00 1,000.51 5.07 1.01
Class R-1 -- assumed 5% return 1,000.00 1,020.00 5.11 1.01
Class R-2 -- actual return 1,000.00 1,000.51 5.01 1.00
Class R-2 -- assumed 5% return 1,000.00 1,020.05 5.06 1.00
Class R-3 -- actual return 1,000.00 1,000.72 4.87 .97
Class R-3 -- assumed 5% return 1,000.00 1,020.21 4.91 .97
Class R-4 -- actual return 1,000.00 1,001.71 3.76 .75
Class R-4 -- assumed 5% return 1,000.00 1,021.31 3.80 .75
Class R-5 -- actual return 1,000.00 1,003.30 2.21 .44
Class R-5 -- assumed 5% return 1,000.00 1,022.86 2.23 .44
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (183), and divided by 365 (to reflect the one-half year period).
THE TAX-EXEMPT MONEY FUND OF AMERICA
INVESTMENT PORTFOLIO
September 30, 2004
Principal Market
Yield at amount value
SHORT-TERM SECURITIES - 98.52% acquisition (000) (000)
Alaska - 0.41%
City of Valdez, Marine Terminal Rev. Ref. Bonds (BP Pipelines (Alaska) Inc.
Project), Series 2001, 1.74% 7/1/37 (1) 1.74% $1,800 $1,800
Arizona - 2.89%
Salt River Project Agricultural Improvement & Power Dist., Series B, TECP:
1.24% 10/8/04 1.24 4,300 4,300
1.24% 10/14/04 1.24 2,000 2,000
1.31% 11/15/04 1.31 5,000 4,991
1.40% 11/17/04 1.40 1,400 1,400
Connecticut - 0.36%
Health and Educational Facs. Auth., Rev. Bonds, Yale University Issue,
Series S-1, TECP, 1.36% 11/12/04 1.36 1,600 1,600
District of Columbia - 7.04%
Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series
1999-A, TECP, AMT, 1.37% 11/12/04 1.37 4,100 4,100
Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000,
TECP:
1.14% 10/6/04 1.14 2,000 2,000
1.14% 10/8/04 1.14 3,800 3,800
1.38% 11/8/04 1.38 2,500 2,500
1.34% 11/17/04 1.34 8,500 8,499
Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured,
TECP:
Series 1999-B:
1.40% 11/16/04 1.40 4,500 4,500
1.55% 11/23/04 1.55 3,500 3,500
Series 1999-C, 1.59% 11/30/04 1.59 2,000 2,000
Florida - 13.85%
Cape Coral, TECP, 1.20% 10/7/04 1.20 1,500 1,500
Jacksonville County Electric Auth., Series 1993-C1, TECP:
1.13% 10/13/04 1.13 5,800 5,800
1.50% 10/22/04 1.50 2,349 2,349
1.48% 11/19/04 1.48 3,700 3,700
Mayo Foundation Health Care Facs. Rev. Ref. Bonds, Jacksonville Health Facs.
Auth. (St. Luke's Hospital Assn.), Series 2001-B, TECP, 1.30% 10/7/04 1.30 3,500 3,500
Municipal Power Agcy., Initial Pooled Loan Project, Series 1995-A, TECP:
1.15% 10/5/04 1.15 4,300 4,300
1.14% 10/12/04 1.14 5,000 5,000
1.36% 10/27/04 1.36 1,000 1,000
Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled
Independent Higher Education Institutions Loan Program), Series 1985, TECP:
1.17% 10/4/04 1.17 4,300 4,300
1.17% 10/5/04 1.17 4,300 4,300
1.14% 10/12/04 1.14 4,700 4,700
1.15% 10/12/04 1.15 1,700 1,700
Sarasota County Public Hospital Dist., Hospital Rev. Bonds (Sarasota Memorial
Hospital Project), Series 1985-C, TECP:
1.42% 11/10/04 1.42 2,400 2,400
1.47% 11/17/04 1.47 2,500 2,500
1.55% 12/1/04 1.55 3,900 3,899
Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg.
Program), AMBAC/FGIC insured, TECP:
Series 2000-A, 1.13% 10/8/04 1.13 5,000 5,000
Series 2000-D:
1.25% 10/14/04 1.25 1,000 1,000
1.42% 11/16/04 1.42 2,450 2,450
1.50% 11/18/04 1.50 1,400 1,400
Georgia - 1.21%
Municipal Electric Auth. of Georgia Power Project, TECP:
Series 1985-A, 1.60% 10/15/04 1.60 2,300 2,300
Series 1985-B, 1.60% 10/15/04 1.60 3,000 3,000
Illinois - 0.27%
City of Elmhurst, Rev. Bonds, Joint Commission on Accreditation of Healthcare
Organizations, Series 1988, 1.70% 7/1/18 (1) 1.70 1,200 1,200
Indiana - 1.14%
County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing
Project), AMT: (1)
Series 2000-A, 1.72% 1/1/30 1.72 2,000 2,000
Series 2000-B, 1.72% 9/1/31 1.72 2,000 2,000
City of Whiting, Environmental Facs. Rev. Bonds (BP Products North America Inc.
Projects), Series 2003, AMT, 1.79% 1/1/38 (1) 1.79 1,000 1,000
Maine - 1.14%
Municipal Bond Bank, Ref. Bonds, Series 2003-A, 4.00% 11/1/04 0.98 5,000 5,012
Maryland - 10.85%
Baltimore County, Consolidated Public Improvement Bond Anticipation Notes,
Series 1995, TECP:
1.11% 10/1/04 1.11 2,400 2,400
1.13% 10/13/04 1.13 2,000 2,000
1.34% 11/15/04 1.34 2,500 2,500
1.47% 11/19/04 1.47 1,000 1,000
1.48% 11/29/04 1.48 2,000 1,999
1.53% 12/1/04 1.53 5,000 4,999
1.60% 12/6/04 1.60 3,000 3,000
Health and Higher Educational Facs. Auth.:
Commercial Paper Rev. Notes, Johns Hopkins University Issue, Series A, TECP:
1.34% 11/4/04 1.34 8,729 8,729
1.38% 11/9/04 1.38 4,000 4,000
Pooled Loan Program Rev. Bonds, Series 1994-D, 1.70% 1/1/29 (1) 1.70 5,000 5,000
Howard County, Consolidated Public Improvement Bond Anticipation Notes, Series
2002-C, TECP:
1.52% 11/8/04 1.52 3,000 3,000
1.40% 11/22/04 1.40 6,500 6,500
Montgomery County, Consolidated Public Improvement Commercial Paper
Anticipation Notes, Series 2002, TECP, 1.25% 11/3/04 1.25 2,500 2,500
Massachusetts - 2.72%
Massachusetts Health and Educational Fac. Auth. Rev. Notes, Harvard University
Issue, Series 2002-EE, TECP:
1.20% 10/18/04 1.20 1,539 1,539
1.25% 10/18/04 1.25 5,000 5,000
1.25% 10/21/04 1.25 3,400 3,400
1.32% 11/15/04 1.32 2,000 2,000
Michigan - 2.88%
Regents of the University of Michigan, Series F, TECP:
1.30% 10/20/04 1.30 3,000 3,000
1.27% 10/28/04 1.27 3,300 3,300
1.32% 11/12/04 1.32 4,360 4,360
1.48% 11/22/04 1.48 2,000 2,000
Minnesota - 1.71%
City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical
Center), TECP:
Adjustable Tender, Series 1988-E, 1.14% 10/7/04 1.14 5,000 5,000
Series 2000-C, 1.35% 11/18/04 1.35 2,500 2,500
Nevada - 4.05%
Clark County Industrial Dev. Rev. Bonds (Nevada Cogeneration Associates #2
Project), Series 1992, AMT, 1.81% 12/1/22 (1) 1.81 1,000 1,000
G.O. Limited Tax Bonds (Nevada Municipal Bond Bank Project), Series 2003-I,
FGIC insured, 5.00% 11/1/04 0.99 2,370 2,378
Las Vegas Valley Water Dist., G.O. Limited Tax Water (SNWA Rev. Supported),
TECP:
Series 2004-A:
1.38% 10/14/04 1.38 5,000 5,000
1.38% 11/17/04 1.38 2,400 2,400
Series 2004-B, 1.15% 10/6/04 1.15 7,000 7,000
New Mexico - 0.43%
Capital Projects G.O. Bonds, Series 2003, 4.00% 3/1/05 1.01 1,875 1,894
New York - 0.57%
Dormitory Auth. (Columbia University 1997 Issue), TECP, 1.39% 11/17/04 1.39 1,000 1,000
Transitional Fin. Auth., New York City Recovery Bonds, Fiscal 2003 Series 3
Subseries 3A, 4.00% 11/1/04 0.98 1,510 1,513
North Carolina - 3.66%
Albemarle Hospital Auth., Health Care Facs. Rev. Bonds, Series 2000, 1.69%
10/1/15 (1) 1.69 400 400
Capital Facs. Fin. Agcy., Duke University Issue, Series A1, TECP:
1.36% 11/15/04 1.36 3,000 3,000
1.40% 11/16/04 1.40 4,090 4,090
1.38% 11/19/04 1.38 5,600 5,600
1.48% 11/22/04 1.48 3,000 3,000
Ohio - 1.37%
Full Faith and Credit G.O. Infrastructure Improvement Ref. Bonds, Series
2004-A, 1.70% 2/1/23 (1) 1.70 6,000 6,000
South Carolina - 1.99%
Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP:
1.40% 10/5/04 1.40 2,000 2,000
1.66% 12/8/04 1.66 6,729 6,729
Texas - 18.74%
City of El Paso Water & Sewer, Series 1998-A, TECP, 1.16% 10/5/04 1.16 4,500 4,500
Public Fin. Auth., G.O. Bonds, Series 1994-A, 5.75% 10/1/09 (preref. 10/14/04) 5.75 5,000 5,000
Gulf Coast Industrial Dev. Auth., Marine Terminal Rev. Bonds (Amoco Oil Company
Project), Series 1993, AMT, 1.79% 4/1/28 (1) 1.79 1,000 1,000
Harris County, G.O. Bonds, Series B, TECP, 1.20% 10/8/04 1.20 2,320 2,320
City of Houston, G.O. Notes, TECP:
Series A, 1.17% 10/13/04 1.17 2,500 2,500
Series B:
1.17% 10/13/04 1.17 2,000 2,000
1.25% 10/20/04 1.25 2,000 2,000
1.30% 10/20/04 1.30 1,400 1,400
Series D, 1.17% 10/4/04 1.17 5,000 5,000
Series E, 1.30% 10/19/04 1.30 5,000 5,000
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission
Services Corp. Project), TECP:
1.15% 10/4/04 1.15 2,000 2,000
1.15% 10/6/04 1.15 3,000 3,000
1.15% 10/7/04 1.15 3,700 3,700
City of San Antonio, Electric and Gas Systems, Series A, TECP, 1.12% 10/14/04 1.12 5,500 5,500
Board of Regents of the Texas A&M University System, Rev. Fin. System,
Series B, TECP, 1.12% 10/15/04 1.12 3,000 3,000
Public Fin. Auth. G.O. (Colonial Roadway Projects) , TECP:
Series 2002-A, 1.42% 11/10/04 1.42 1,900 1,900
Series 2002-B:
1.15% 10/1/04 1.15 3,500 3,500
1.13% 10/13/04 1.13 3,950 3,950
Series 2003, 1.25% 11/2/04 1.25 6,000 6,000
Series 2003-C2, 1.15% 10/22/04 1.15 2,000 2,000
Board of Regents of The University of Texas System, Permanent University Fund
Flexible Rate Notes, Series 2002-A, TECP:
1.30% 10/21/04 1.30 6,000 6,000
1.30% 10/26/04 1.30 3,000 3,000
1.42% 11/10/04 1.42 4,000 4,000
1.40% 11/22/04 1.40 4,000 4,000
Utah - 5.69%
Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds,
TECP:
Series 1985-E, AMBAC insured:
1.15% 10/6/04 1.15 2,000 2,000
1.14% 10/12/04 1.14 2,000 2,000
1.40% 11/16/04 1.40 2,500 2,500
Series 1985-F, AMBAC insured:
1.34% 11/5/04 1.34 2,000 2,000
1.34% 11/9/04 1.34 4,000 4,000
1.36% 11/19/04 1.36 5,000 5,000
Series 1998-B4, 1.13% 10/4/04 1.13 3,000 3,000
Series 1998-B5:
1.48% 11/8/04 1.48 2,500 2,500
1.36% 11/18/04 1.36 2,000 2,000
Virginia - 6.34%
Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series
1999-A, AMT, TECP:
1.57% 11/2/04 1.57 4,000 4,000
1.57% 11/5/04 1.57 2,500 2,500
1.38% 11/18/04 1.38 3,000 3,000
1.60% 12/3/04 1.60 2,700 2,700
Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal
Associates Project), TECP:
Series 1987-A:
1.40% 10/18/04 1.40 2,635 2,635
1.38% 11/3/04 1.38 3,000 3,000
Series 1987-B, 1.31% 11/12/04 1.31 5,500 5,499
Commonwealth Transportation Board, Federal Highway Reimbursement Anticipation
Notes, Series 2000, 5.50% 10/1/04 5.50 2,500 2,500
University of Virginia Issue Rev. Pledge Notes, Series 2003-A, TECP:
1.38% 11/8/04 1.38 1,000 1,000
1.34% 11/17/04 1.34 1,000 1,000
Washington - 2.86%
Port of Seattle, Subordinate Lien Rev. Notes, TECP:
Series 1999-A1, 1.50% 10/19/04 1.50 4,755 4,755
Series 2004-B1, AMT, 1.45% 11/10/04 1.45 4,800 4,800
City of Tacoma, Limited Tax G.O. Bond Anticipation Notes, Series 2002-2B, TECP,
1.25% 10/15/04 1.25 3,000 3,000
West Virginia - 0.93%
Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project),
Series 1989-A, TECP, AMT:
1.16% 10/13/04 1.16 1,200 1,200
1.41% 11/19/04 1.41 2,900 2,900
Wisconsin - 4.12%
Wisconsin Transportation Rev., TECP:
Series 1997-A:
1.14% 10/12/04 1.14 5,000 5,000
1.31% 11/12/04 1.31 2,000 2,000
1.34% 11/16/04 1.34 2,500 2,500
1.36% 11/18/04 1.36 6,584 6,584
Series 1997-B, 1.37% 11/5/04 1.37 2,000 2,000
Wyoming - 1.30%
Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds
(PacifiCorp Project), Series 1988-A, TECP:
1.47% 11/15/04 1.47 3,700 3,700
1.59% 12/6/04 1.59 2,000 2,000
TOTAL INVESTMENT SECURITIES (cost: $432,595,000) 432,573
Other assets less liabilities 6,488
NET ASSETS $439,061
(1) Coupon rate may change periodically; the date of the next scheduled
coupon rate change is considered to be the maturity date.
Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Dev. = Development
Dist. = District
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
at September 30, 2004 (dollars and shares in thousands,
except per-share amounts)
ASSETS:
Investment securities at market:
(cost: $432,595) $432,573
Cash 1,082
Receivables for:
Sales of fund's shares $5,752
Interest 811 6,563
440,218
LIABILITIES:
Payables for:
Repurchases of fund's shares 928
Dividends on fund's shares 18
Investment advisory services 129
Services provided by affiliates 38
Deferred Trustees' compensation 22
Other fees and expenses 22 1,157
NET ASSETS AT SEPTEMBER 30, 2004 $439,061
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $439,176
Distributions in excess of net investment income (93)
Net unrealized depreciation (22)
NET ASSETS AT SEPTEMBER 30, 2004 $439,061
Shares of beneficial interest issued and outstanding - unlimited shares
authorized, 439,179 total shares outstanding
Net assets Shares outstanding Net asset value per share
Class A $417,597 417,711 $1.00
Class R-5 21,464 21,468 1.00
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the year ended September 30, 2004 (dollars in thousands)
INVESTMENT INCOME:
Income:
Interest $4,034
Fees and expenses:
Investment advisory services $1,494
Distribution services 183
Transfer agent services 132
Administrative services 17
Reports to shareholders 16
Registration statement and prospectus 73
Postage, stationery and supplies 45
Trustees' compensation 25
Auditing and legal 88
Custodian 18
State and local taxes 5
Other 10
Total expenses before waiver 2,106
Waiver of expenses 7 2,099
Net investment income 1,935
NET UNREALIZED DEPRECIATION ON INVESTMENTS (18)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,917
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended September 30
2004 2003
OPERATIONS:
Net investment income $1,935 $2,100
Net unrealized depreciation
on investments (18) (22)
Net increase in net assets
resulting from operations 1,917 2,078
DIVIDENDS PAID OR ACCRUED TO
SHAREHOLDERS FROM NET INVESTMENT INCOME: (1,935) (2,101)
CAPITAL SHARE TRANSACTIONS 75,787 11,833
TOTAL INCREASE IN NET ASSETS 75,769 11,810
NET ASSETS:
Beginning of year 363,292 351,482
End of year $439,061 $363,292
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Tax-Exempt Money Fund of America (the "fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks to provide income free from federal taxes,
while preserving capital and maintaining liquidity, through investments in
high-quality municipal securities with effective maturities of one year or less.
The fund offers two share classes consisting of one retail share class (Class A)
and one retirement plan share class (Class R-5). Each share class is sold
without any sales charges and does not carry any conversion rights.
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation proceeds. Each share class has identical voting rights, except for
the exclusive right to vote on matters affecting only its class. Share classes
have different fees and expenses ("class-specific fees and expenses"), primarily
due to different arrangements for distribution, administrative and shareholder
services. Differences in class-specific fees and expenses will result in
differences in net investment income and, therefore, the payment of different
per-share dividends by each class.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to
comply with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions
that affect reported amounts and disclosures. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the fund:
NET ASSET VALUE - The fund values its shares in accordance with
Securities and Exchange Commission ("SEC") rules, using the
penny-rounding method, which permits the fund to maintain a constant
net asset value of $1.00 per share.
SECURITY VALUATION - Fixed-income securities are valued at prices
obtained from an independent pricing service, when such prices are
available. However, where the investment adviser deems it appropriate,
such securities will be valued at the mean quoted bid and asked prices
or at prices for securities of comparable maturity, quality and type.
Short-term securities purchased within 60 days to maturity are valued
at amortized cost, which approximates market value. The value of
short-term securities purchased with greater than 60 days to maturity
with 60 days or less remaining to maturity is determined based on the
market value on the 61st day. The ability of the issuers of the debt
securities held by the fund to meet their obligations may be affected
by economic developments in a specific industry, state or region.
Securities and other assets for which representative market quotations
are not readily available are fair valued as determined in good faith
under procedures adopted by authority of the fund's Board of Trustees.
Various factors may be reviewed in order to make a good faith
determination of a security's fair value. These factors include, but
are not limited to, the type and cost of the security; contractual or
legal restrictions on resale of the security; relevant financial or
business developments of the issuer; actively traded similar or
related securities; conversion or exchange rights on the security;
related corporate actions; significant events occurring after the
close of trading in the security; and changes in overall market
conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Interest income is recognized on an accrual
basis. Market discounts, premiums and original issue discounts on
fixed-income securities are amortized daily over the expected life of
the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) 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. Generally, income earned and
distributed by the fund is exempt from federal income taxes.
DISTRIBUTIONS - Distributions paid to shareholders are based on net investment
income determined on a tax basis, which may differ from net investment income
for financial reporting purposes. As of September 30, 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 September 30, 2004, the cost of investment
securities for federal income tax purposes was $432,595,000.
During the year ended September 30, 2004, the fund reclassified $3,000 from
additional paid-in capital to distributions in excess of net investment income
to align financial reporting with tax reporting.
As of September 30, 2004, the components of distributable earnings on a tax
basis were as follows (dollars in thousands):
Undistributed net investment income $41
Short-term loss carryforwards (expiring 2006-2011) (94)
Gross unrealized appreciation on investment securities 1
Gross unrealized depreciation on investment securities (23)
Net unrealized depreciation on investment securities (22)
Distributions paid or accrued to shareholders from ordinary income were as
follows (dollars in thousands):
Share class Year ended September 30, 2004 Year ended September 30, 2003
Class A $ 1,874 $ 2,056
Class R-5 61 45
Total $ 1,935 $ 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. During the year ended September 30, 2004, CRMC reduced investment
advisory services fees by $7,000. As a result, the fee shown on the accompanying
financial statements of $1,494,000, which was equivalent to an annualized rate
of 0.380%, was reduced to $1,487,000, or 0.378% of average daily net assets.
CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual
share classes are accrued directly to the respective share class. The principal
class-specific fees and expenses are described below:
DISTRIBUTION SERVICES - The fund has adopted a plan of distribution
for Class A shares. Under the plan, the Board of Trustees approves
certain categories of expenses that are used to finance activities
primarily intended to sell fund shares. The plan provides for annual
expenses, based on a percentage of average daily net assets, of up to
0.15%. This class may use a portion of average daily net assets to pay
service fees, or to compensate AFD for paying service fees, to firms
that have entered into agreements with AFD for providing certain
shareholder services.
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for Class A shares. Under this agreement, this share class
compensates AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to Class R-5
from the administrative services fees paid to CRMC described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services
agreement with CRMC to provide transfer agent and other related
shareholder services for Class R-5. This class pays CRMC annual fees
of 0.10% based on its average daily net assets. This class also pays
AFS additional amounts for certain transfer agent services. CRMC and
AFS may use these fees to compensate third parties for performing
these services.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred
compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to
defer the cash payment of part or all of their compensation. These deferred
amounts, which remain as liabilities of the fund, are treated as if invested in
shares of the fund. These amounts represent general, unsecured liabilities of
the fund and vary according to the total return of the fund. Trustees'
compensation in the accompanying financial statements includes the current fees
(either paid in cash or deferred) and the net increase or decrease in the value
of the deferred amounts.
AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are
or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers or Trustees received any compensation directly from the fund.
4. CAPITAL SHARE TRANSACTIONS
Capital share transactions in the fund were as follows (dollars and shares in
thousands):
Share class Sales(1) Reinvestments of dividends
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ 490,187 490,187 $ 1,781 1,781
Class R-5 98,908 98,908 40 40
Total net increase
(decrease) $ 589,095 589,095 $ 1,821 1,821
Year ended September 30, 2003
Class A $ 416,952 416,952 $ 1,948 1,948
Class R-5 31,199 31,199 35 35
Total net increase
(decrease) $ 448,151 448,151 $ 1,983 1,983
Share class Repurchases(1) Net increase
Amount Shares Amount Shares
Year ended September 30, 2004
Class A $ (427,693) (427,693) $ 64,275 64,275
Class R-5 (87,436) (87,436) 11,512 11,512
Total net increase
(decrease) $ (515,129) (515,129) $ 75,787 75,787
Year ended September 30, 2003
Class A $ (407,232) (407,232) $ 11,668 11,668
Class R-5 (31,069) (31,069) 165 165
Total net increase
(decrease) $ (438,301) (438,301) $ 11,833 11,833
(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
year ended September 30, 2004, the custodian fee of $18,000 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
of period income (2) income of period
Class A:
Year ended 9/30/2004 $1.00 $.005 $(.005) $1.00
Year ended 9/30/2003 1.00 .006 (.006) 1.00
Year ended 9/30/2002 1.00 .010 (.010) 1.00
Year ended 9/30/2001 1.00 .029 (.029) 1.00
Year ended 9/30/2000 1.00 .032 (.032) 1.00
Class R-5:
Year ended 9/30/2004 1.00 .005 (.005) 1.00
Year ended 9/30/2003 1.00 .005 (.005) 1.00
Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Ratio of expenses Ratio of expenses Ratio of
Net assets, to average to average net income
Total end of period net assets net assets to average
return (in millions) before waiver after waiver (3) net assets
Class A:
Year ended 9/30/2004 .49% $418 .53% .53% .49%
Year ended 9/30/2003 .57 353 .55 .55 .57
Year ended 9/30/2002 1.05 341 .54 .54 1.04
Year ended 9/30/2001 2.92 319 .52 .52 2.86
Year ended 9/30/2000 3.29 276 .64 .64 3.23
Class R-5:
Year ended 9/30/2004 .45 21 .57 .57 .47
Year ended 9/30/2003 .54 10 .58 .58 .55
Period from 7/15/2002 to 9/30/2002 .17 10 .12 .12 .17
(1) Based on operations for the period shown (unless otherwise noted) and,
accordingly, may not be representative of a full year.
(2) Based on average shares outstanding.
(3) The ratios in this column reflect the impact, if any, of certain waivers
from CRMC. During the year ended 9/30/2004, CRMC reduced fees for
investment advisory services for all share classes.
See Notes to Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE TAX-EXEMPT MONEY FUND OF
AMERICA:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and changes
in net assets and the financial highlights present fairly, in all material
respects, the financial position of The Tax-Exempt Money Fund of America (the
"Fund") at September 30, 2004, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States), which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at September 30, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLC
Los Angeles, California
October 29, 2004
TAX INFORMATION (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of certain distributions received by
shareholders during such fiscal year. The information below is provided for the
fund's fiscal year ending September 30, 2004.
Shareholders may exclude from federal taxable income any exempt-interest
dividends paid by the fund from net investment income. For purposes of computing
this exclusion, all of the dividends paid by the fund from net investment income
earned during the fiscal year qualify as exempt-interest dividends.
SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT
THEIR TAX ADVISERS.
EXPENSE EXAMPLE (unaudited)
As a shareholder of the fund, you incur two types of costs: (1) transaction
costs such as initial sales charges on purchase payments and contingent deferred
sales charges on redemptions (loads); and (2) ongoing costs, including
management fees; distribution and service (12b-1) fees; and other expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the fund so you can compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period (April 1,
2004 through September 30, 2004).
ACTUAL EXPENSES:
The first line of each share class in the table below provides information about
actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line under the heading entitled "Expenses paid during
period" to estimate the expenses you paid on your account during this period.
There are some account fees that are charged to certain types of accounts, such
as Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor.
You may use the information in the table below to estimate the impact of these
fees by adding the amount of the fees to the number in the first line for your
share class under the heading entitled "Expenses paid during period," and
subtracting the amount of the fees from the number in the first line under the
heading entitled "Ending account value."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of each share class in the table below provides information
about hypothetical account values and hypothetical expenses based on the actual
expense ratio for the share class and an assumed rate of return of 5.00% per
year before expenses, which is not the actual return of the share class. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the fund and other
funds. To do so, compare this 5.00% hypothetical example with the 5.00%
hypothetical examples that appear in the shareholder reports of the other funds.
There are some account fees that are charged to certain shareholders, such as
Individual Retirement Accounts (generally, a $10 fee is charged to set up the
account and an additional $10 fee is charged to the account annually) that would
increase the amount of expenses paid on your account. In addition, retirement
plan participants may be subject to certain fees charged by the plan sponsor.
You may use the information in the table below to estimate the impact of these
fees by adding the amount of the fees to the number in the second line for your
share class under the heading entitled "Expenses paid during period," and
subtracting the amount of the fees from the number in the second line under the
heading entitled "Ending account value."
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Beginning account Ending account Expenses paid Annualized
value 4/1/2004 value 9/30/2004 during period(1) expense ratio
Class A -- actual return $ 1,000.00 $1,002.84 $2.56 .51%
Class A -- assumed 5% return 1,000.00 1,022.51 2.59 .51
Class R-5 -- actual return 1,000.00 1,002.64 2.76 .55
Class R-5 -- assumed 5% return 1,000.00 1,022.31 2.79 .55
(1) Expenses are equal to the annualized expense ratio, multiplied by the
average account value over the period, multiplied by the number of days in
the period (183) and divided by 365 (to reflect the one-half year period).
BOARD OF TRUSTEES
"NON-INTERESTED" TRUSTEES
YEAR FIRST
ELECTED A
TRUSTEE OF
NAME AND AGE THE FUND(1) PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
Ambassador 1999 Corporate director and author; former U.S.
Richard G. Capen, Jr., 70 Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc.
(communications company); former Chairman and Publisher, The Miami
Herald
H. Frederick Christie, 71 CMTA 1976 Private investor; former President and CEO,
CTRS 1991 The Mission Group (non-utility holding company,
CTEX 1989 subsidiary of Southern California Edison Company)
Diane C. Creel, 56 1994 Chairman of the Board and CEO, Ecovation, Inc. (organic waste
management)
Martin Fenton, 69 CMTA 1989 Chairman of the Board and CEO, Senior Resource
CTRS 1991 Group LLC (development and management of
CTEX 1989 senior living communities)
Leonard R. Fuller, 58 CMTA 1994 President and CEO, Fuller Consulting (financial
CTRS 1994 management consulting firm)
CTEX 1995
Richard G. Newman, 70 1991 Chairman of the Board and CEO, AECOM Technology Corporation
(engineering, consulting and professional technical services)
Frank M. Sanchez, 61 1999 Principal, The Sanchez Family Corporation
dba McDonald's Restaurants (McDonald's licensee)
"NON-INTERESTED" TRUSTEES
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(2)
OVERSEEN
NAME AND AGE BY TRUSTEE OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE
Ambassador 14 Carnival Corporation
Richard G. Capen, Jr., 70
H. Frederick Christie, 71 19 Ducommun Incorporated; IHOP Corporation; Southwest Water Company;
Valero L.P.
Diane C. Creel, 56 12 Allegheny Technologies; BF Goodrich; Teledyne Technologies
Martin Fenton, 69 16 None
Leonard R. Fuller, 58 14 None
Richard G. Newman, 70 13 Sempra Energy; Southwest Water Company
Frank M. Sanchez, 61 12 None
"INTERESTED" TRUSTEES(4)
YEAR FIRST
ELECTED A
TRUSTEE OR PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
NAME, AGE AND OFFICER OF AND POSITIONS HELD WITH AFFILIATED ENTITIES OR THE
POSITION WITH FUND THE FUND(1) PRINCIPAL UNDERWRITER OF THE FUND
Paul G. Haaga, Jr., 55 CMTA 1985 Executive Vice President and Director, Capital
Chairman of the Boards CTRS 1990 Research and Management Company; Director,
CTEX 1992 The Capital Group Companies, Inc.(5)
Abner D. Goldstine, 74 CMTA 1976 Senior Vice President and Director, Capital Research
President CTRS 1991 and Management Company
CTEX 1989
Don R. Conlan, 68 1996 President (retired), The Capital Group Companies, Inc.(5)
"INTERESTED" TRUSTEES(4)
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(2)
NAME, AGE AND OVERSEEN
POSITION WITH FUND BY TRUSTEE OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE
Paul G. Haaga, Jr., 55 17 None
Chairman of the Boards
Abner D. Goldstine, 74 12 None
President
Don R. Conlan, 68 6 None
CMTA = The Cash Management Trust of America
CTRS = The U.S. Treasury Money Fund of America
CTEX = The Tax-Exempt Money Fund of America
The statement of additional information includes additional information about
fund Trustees and is available without charge upon request by calling American
Funds Service Company at 800/421-0180. The address for all Trustees and officers
of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Fund
Secretary.
(1) Trustees and officers of the fund serve until their resignation, removal or
retirement.
(2) Capital Research and Management Company manages the American Funds,
consisting of 29 funds. Capital Research and Management Company also
manages American Funds Insurance Series,(R) which serves as the underlying
investment vehicle for certain variable insurance contracts, and Endowments,
whose shareholders are limited to certain nonprofit organizations.
(3) This includes all directorships (other than those in the American Funds)
that are held by each Trustee as a director of a public company or a
registered investment company.
(4) "Interested persons" within the meaning of the 1940 Act, on the basis of
their affiliation with the fund's investment adviser, Capital Research and
Management Company, or affiliated entities (including the fund's principal
underwriter).
(5) Company affiliated with Capital Research and Management Company.
OTHER OFFICERS
YEAR FIRST
ELECTED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND
NAME, AGE AND AN OFFICER POSITIONS HELD WITH AFFILIATED ENTITIES OR THE PRINCIPAL
POSITION WITH FUND OF THE FUND(1) UNDERWRITER OF THE FUND
Teresa S. Cook, 52 1991 Senior Vice President -- Investment Management
Senior Vice President Group, Capital Research and Management Company
CMTA and CTRS only
Neil L. Langberg, 51 1989 Vice President -- Investment Management Group,
Senior Vice President Capital Research and Management Company
CTEX only
Kristine M. Nishiyama, 34 2003 Vice President and Counsel -- Fund Business
Vice President Management Group, Capital Research and Management Company
Karen F. Hall, 39 1999 Vice President -- Investment Management Group,
Assistant Vice President Capital Research and Management Company
CMTA and CTRS only
Julie F. Williams, 56 CMTA 1982 Vice President -- Fund Business Management
Secretary CTRS 1991 Group, Capital Research and Management Company
CTEX 1989
Susi M. Silverman, 34 2000 Vice President -- Fund Business Management
Treasurer Group, Capital Research and Management Company
Kimberly S. Verdick, 40 1994 Assistant Vice President -- Fund Business
Assistant Secretary Management Group, Capital Research and Management Company
Sharon G. Moseley, 36 2003 Vice President -- Fund Business Management
Assistant Treasurer Group, Capital Research and Management Company
(1) Trustees and officers of the fund serve until their resignation, removal or
retirement.
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 REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
350 South Grand Avenue
Los Angeles, CA 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Most American Funds offer several share classes, each with its own sales charge
and expense structure, allowing you to choose the one that best meets your
financial needs. The three American Funds money market funds each offer Class A
shares at no sales charge.
The Cash Management Trust of America (CMTA) is the only American Funds money
market fund that offers Class B, Class C, Class F and Class 529 shares. CMTA
Class B, C and F shares may be acquired only by exchanging from other American
Funds within the same share class (i.e., they may not be purchased directly) and
do not offer check-writing privileges. American Funds Class B, C and F shares
are subject to additional annual expenses and fees, including, in the case of B
and C shares, higher 12b-1 fees and contingent deferred sales charges if Class B
shares are redeemed within six years of purchase and Class C shares are redeemed
within one year of purchase. Class B, C and F shares are not available to
certain employer-sponsored retirement plans. See the CMTA prospectus for further
details.
INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES
AND EXPENSES OF THE AMERICAN FUNDS AND COLLEGEAMERICA. THIS AND OTHER IMPORTANT
INFORMATION IS CONTAINED IN THE FUNDS' PROSPECTUS AND THE COLLEGEAMERICA PROGRAM
DESCRIPTION, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISER AND SHOULD BE
READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY (AFS) AT 800/421-0180 OR VISIT THE AMERICAN FUNDS WEBSITE AT
AMERICANFUNDS.COM. COLLEGEAMERICA IS SPONSORED BY THE VIRGINIA COLLEGE SAVINGS
PLAN.
"AMERICAN FUNDS PROXY VOTING GUIDELINES" -- WHICH DESCRIBES HOW WE VOTE PROXIES
RELATING TO PORTFOLIO SECURITIES -- IS AVAILABLE FREE OF CHARGE ON THE U.S.
SECURITIES AND EXCHANGE COMMISSION (SEC) WEBSITE AT WWW.SEC.GOV, ON THE AMERICAN
FUNDS WEBSITE OR UPON REQUEST BY CALLING AFS. THE FUND'S PROXY VOTING RECORD FOR
THE 12 MONTHS ENDED JUNE 30, 2004, IS ALSO AVAILABLE ON THE SEC AND AMERICAN
FUNDS WEBSITES.
The Cash Management Trust of America, The U.S. Treasury Money Fund of America
and The Tax-Exempt Money Fund of America file a complete list of their portfolio
holdings with the SEC for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the SEC website or upon
request by calling AFS. You may also review or, for a fee, copy the forms at the
SEC's Public Reference Room in Washington, D.C. (800/SEC-0330).
This report is for the information of shareholders of The Cash Management Trust
of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money
Fund of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the funds. If used as
sales material after December 31, 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. More than half of them were in the
investment business before the sharp market decline of 1987.
o A COMMITMENT TO LOW OPERATING EXPENSES
American Funds' operating expenses are among the lowest in the mutual fund
industry. Our portfolio turnover rates are low as well, keeping transaction
costs and tax consequences contained.
29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS
o GROWTH FUNDS
Emphasis on long-term growth through stocks
AMCAP Fund(R)
EuroPacific Growth Fund(R)
The Growth Fund of America(R)
The New Economy Fund(R)
New Perspective Fund(R)
New World Fund(SM)
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
Emphasis on long-term growth and dividends through stocks
American Mutual Fund(R)
Capital World Growth and Income Fund(SM)
Fundamental Investors(SM)
The Investment Company of America(R)
Washington Mutual Investors Fund(SM)
o EQUITY-INCOME FUNDS
Emphasis on above-average income and growth through stocks and/or bonds
Capital Income Builder(R)
The Income Fund of America(R)
o BALANCED FUND
Emphasis on long-term growth and current income through stocks and bonds
American Balanced Fund(R)
o BOND FUNDS
Emphasis on current income through bonds
American High-Income Trust(SM)
The Bond Fund of America(SM)
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities Fund(SM)
o TAX-EXEMPT BOND FUNDS
Emphasis on tax-free current income through municipal bonds
American High-Income Municipal Bond Fund(R)
Limited Term Tax-Exempt Bond Fund of America(SM)
The Tax-Exempt Bond Fund of America(R)
STATE-SPECIFIC TAX-EXEMPT FUNDS
The Tax-Exempt Fund of California(R)
The Tax-Exempt Fund of Maryland(R)
The Tax-Exempt Fund of Virginia(R)
o MONEY MARKET FUNDS
The Cash Management Trust of America(R)
The Tax-Exempt Money Fund of America(SM)
The U.S. Treasury Money Fund of America(SM)
THE CAPITAL GROUP COMPANIES
American Funds
Capital Research and Management
Capital International
Capital Guardian
Capital Bank and Trust
Lit. No. MFGEAR-960-1104P
Litho in USA AGD/LPT/8063-S1915
Printed on recycled paper
ITEM 2 - Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal
Executive Officer and Principal Financial Officer. The Registrant undertakes to
provide to any person without charge, upon request, a copy of the Code of
Ethics. Such request can be made to American Funds Service Company at
800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los
Angeles, California 90071.
ITEM 3 - Audit Committee Financial Expert
The Registrant's Board has determined that H. Frederick Christie, a member of
the Registrant's Audit Committee, is an "audit committee financial expert" and
"independent," as such terms are defined in this Item. This designation will not
increase the designee's duties, obligations or liability as compared to his
duties, obligations and liability as a member of the Audit Committee and of the
Board; nor will it reduce the responsibility of the other Audit Committee
members. There may be other individuals who, through education or experience,
would qualify as "audit committee financial experts" if the Board had designated
them as such. Most importantly, the Board believes each member of the Audit
Committee contributes significantly to the effective oversight of the
Registrant's financial statements and condition.
ITEM 4 - Principal Accountant Fees and Services
Fees billed by the Registrant's auditors for each of the last two fiscal years,
including fees for non-audit services billed to the adviser and affiliates for
engagements that relate directly to the operations and financial reporting of
the Registrant, and a description of the nature of the services comprising the
fees, are listed below:
Registrant:
a) Audit Fees:
2003 $25,000
2004 $27,000
b) Audit- Related Fees:
2003 none
2004 none
c) Tax Fees:
2003 $5,000
2004 $5,000
The tax fees consist of professional
services relating to the preparation of the
Registrant's tax returns.
d) All Other Fees:
2003 none
2004 none
Adviser and affiliates (includes only fees for non-audit
services billed to the adviser and affiliates for engagements
that relate directly to the operations and financial reporting
of the Registrant and were subject to the pre-approval
policies described below):
b) Audit- Related Fees:
2003 none
2004 none
c) Tax Fees:
2003 none
2004 none
d) All Other Fees:
2003 none
2004 none
The Registrant's Audit Committee will pre-approve all audit and permissible
non-audit services that the Committee considers compatible with maintaining the
auditors' independence. The pre-approval requirement will extend to all
non-audit services provided to the Registrant, the investment adviser, and any
entity controlling, controlled by, or under common control with the investment
adviser that provides ongoing services to the Registrant, if the engagement
relates directly to the operations and financial reporting of the registrant.
The Committee will not delegate its responsibility to pre-approve these services
to the investment adviser. The Committee may delegate to one or more Committee
members the authority to review and pre-approve audit and permissible non-audit
services. Actions taken under any such delegation will be reported to the full
Committee at its next meeting. The pre-approval requirement is waived with
respect to non-audit services if certain conditions are met. The pre-approval
requirement was not waived for any of the services listed above under paragraphs
b, c and d.
Aggregate non-audit fees paid to the Registrant's auditors, including fees for
all services billed to the Registrant and the adviser and affiliates that
provide ongoing services to the Registrant were $5,000 for fiscal year 2003 and
$5,000 for fiscal year 2004. The non-audit services represented by these amounts
were brought to the attention of the Committee and considered to be compatible
with maintaining the auditors' independence.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable.
ITEM 6 - Schedule of Investments
Not applicable, insofar as the schedule is included as part of the report to
shareholders filed under Item 1 of this Form
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers Not applicable to this Registrant, insofar as
the Registrant is not a closed-end management investment company.
ITEM 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, as amended. The committee periodically
reviews such issues as the Board's composition, responsibilities, committees,
compensation and other relevant issues, and recommends any appropriate changes
to the full Board of Trustees. While the committee normally is able to identify
from its own resources an ample number of qualified candidates, it will consider
shareholder suggestions of persons to be considered as nominees to fill future
vacancies on the Board. Such suggestions must be sent in writing to the
nominating 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 Registrant's Principal Executive Officer and Principal Financial
Officer have concluded, based on their evaluation of the Registrant's
disclosure controls and procedures (as such term is defined in Rule 30a-3
under the Investment Company Act of 1940), that such controls and
procedures are adequate and reasonably designed to achieve the purposes
described in paragraph (c) of such rule.
(b) There were no changes in the Registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the Registrant's 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 that is the subject of the disclosure required by Item 2
is attached as an exhibit hereto.
(b) The certifications required by Rule 30a-2 of the Investment Company Act of
1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of
2002 are attached as exhibits hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE U.S. TREASURY MONEY FUND OF AMERICA
By
- -------------------------------------------------------
Abner D. Goldstine, President and PEO
Date: December 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: December 8, 2004
By
/s/ Susi M. Silverman
- --------------------------------------------------
Susi M. Silverman, Treasurer and PFO
Date: December 8, 2004