N-CSR 1 tefny_ncsr.htm N-CSR

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: 811-22448

American Funds Tax-Exempt Fund of New York

(Exact Name of Registrant as Specified in Charter)

6455 Irvine Center Drive

Irvine, California 92618

(Address of Principal Executive Offices)

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

Date of fiscal year end: July 31

Date of reporting period: July 31, 2015

Steven I. Koszalka

American Funds Tax-Exempt Fund of New York

6455 Irvine Center Drive

Irvine, California 92618

(Name and Address of Agent for Service)

ITEM 1 – Reports to Stockholders

Invest in municipal bonds
for tax-advantaged income.

American Funds Short-Term Tax-Exempt Bond Fund^®
Limited Term Tax-Exempt Bond Fund of America^®
The Tax-Exempt Bond Fund of America^®
American High-Income Municipal Bond Fund^®
The Tax-Exempt Fund of California^®
American Funds Tax-Exempt Fund of New York^®

Annual reports for the year ended July 31, 2015

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide you with current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America seeks to provide you with current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America seeks to provide you with a high level of current income exempt from federal income tax, consistent with the preservation of capital.

American High-Income Municipal Bond Fund seeks to provide you with a high level of current income exempt from regular federal income tax.

The Tax-Exempt Fund of California seeks to provide you with a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is preservation of capital.

American Funds Tax-Exempt Fund of New York seeks to provide you with a high level of current income exempt from regular federal, New York state and New York City income taxes. Its secondary objective is preservation of capital.

Each fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge had been deducted (maximum 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; 3.75% for The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York), the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2015 (the most recent calendar quarter-end) and the total annual fund operating expense ratios as of the prospectus dated October 1, 2015 (unaudited):

	Cumulative total returns			Average annual total returns						Gross
Class A shares	1 year			5 years			10 years/Lifetime*			expense ratios

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		–2.31	%		0.72	%		1.42	%		0.58	%
Limited Term Tax-Exempt Bond Fund of America		–1.59			2.48			3.04			0.57

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		–0.62			4.12			3.77			0.54
American High-Income Municipal Bond Fund		1.03			5.92			4.10			0.68
The Tax-Exempt Fund of California		–0.35			4.86			4.03			0.62
American Funds Tax-Exempt Fund of New York		–0.49			–			3.45			0.72

*	Applicable only to American Funds Tax-Exempt Fund of New York, which began operations on 11/1/10. All other funds reflect 10-year results.

For other share class results, visit americanfunds.com.

The 10-year investment result for American Funds Short-Term Tax-Exempt Bond Fund includes the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore is not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of that period. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Fund of New York. Investment results reflect the reimbursement, without which the results would have been lower. This reimbursement will be in effect through at least September 30, 2015, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Visit americanfunds.com for more information.

A summary of each fund’s 30-day yield can be found on page 3.

Individual funds are listed in this report according to their risk potential, with the lowest risk funds listed first.

Contents

1		Letter to investors

4		Fund reviews

		Investment portfolios

17		American Funds Short-Term Tax-Exempt Bond Fund

23		Limited Term Tax-Exempt Bond Fund of America

28		The Tax-Exempt Bond Fund of America

34		American High-Income Municipal Bond Fund

39		The Tax-Exempt Fund of California

44		American Funds Tax-Exempt Fund of New York

50		Financial statements

84		Boards of trustees and other officers

Fellow investors:

We are pleased to present you with this annual report for six American Funds municipal bond funds: American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York. This report covers the 12 months ended July 31, 2015, the conclusion of the funds’ fiscal year.

After a strong start, municipal bond prices faltered in the closing months of the period as the U.S. economy strengthened and investors anticipated an interest rate hike by the U.S. Federal Reserve. Despite this reversal, all of the funds produced positive results for the full fiscal year. Total returns ranged from 0.26% for American Funds Short-Term Tax-Exempt Bond Fund to 5.34% for American High-Income Municipal Bond Fund. (See pages 4 through 16 for fund specific results and information.)

Economic and market overview

The fiscal year comprised two distinct and contrasting periods. During the first half, the U.S. fixed-income market rallied as investors focused on weak economic growth in major markets around the world, the evolving fiscal crisis in Greece and aggressive stimulus measures implemented in Europe, Japan and China.

In the latter half of the year, however, municipal bonds lost ground along with the broader fixed-income market amid growing evidence that the U.S. economy was gaining strength. Some 215,000 jobs were added in July; at month-end the unemployment rate held at 5.3%. Rising home prices and strong auto sales further suggested an upbeat economic backdrop.

With Fed officials repeatedly signaling that they intend to hike rates in 2015, the yield on the benchmark 10-year U.S. Treasury bond rose from 2.17% at the end of December to a high of 2.50% on June 10. A flare-up in Greece’s ongoing debt crisis and a sharp decline in China’s stock market sparked a late-period rally as investors sought the relative safety of bonds. The rally contributed to a moderate decline in yields, as the 10-year Treasury yield fell to 2.20%. For the year, municipal bond returns outpaced Treasuries.

In June, Puerto Rico’s long-running debt crisis returned to news headlines after the island’s governor said the commonwealth’s debts of about $72 billion were “not payable” and indicated that some form of restructuring would be necessary. Efforts are under way to negotiate a resolution between the government, investors and other stakeholders. We remind investors that the municipal bond market is vast and diverse. As such, Puerto Rico’s unique challenges have no bearing on the health of most of the thousands of issuers in the market.

While the situation in Puerto Rico triggered volatility in the high-yield municipal bond market, it had a limited impact on the tax-exempt market on the whole. The Barclays High Yield Municipal Bond Index rose 2.63% for the year. That compares with a 3.56% gain for the Barclays Municipal Bond Index, a broad measure of the investment-grade (rated BBB/Baa and above) tax-exempt market. In terms of maturities, longer term bonds tended

American Funds Tax-Exempt Funds

to outpace shorter duration bonds. Revenue bonds, which support essential services such as water, sewer and electric utilities, generated higher returns than general obligation bonds overall. All of the indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Municipal bond sales were robust for much of the year, driven largely by increased refunding as issuers looked to take advantage of attractive borrowing costs. Through July 31, volume is up 35% overall in 2015. However, volume slowed toward the end of the period, with about $34 billion of municipal bonds issued in May, June and July. Investor demand declined during the second half of the period, adding to the downward pressure on prices.

Looking ahead

Given long-term trends in areas such as employment and housing, we expect the U.S. economy will continue to improve, and that the Fed will raise short-term interest rates. Recent events, however, may have pushed back the Fed’s timetable. In mid-August, after the close of the fiscal year, volatility returned to equity markets, as investors became increasingly concerned about China’s slowing economy. Many investors fled to the relative safety of fixed-income investments. We are closely monitoring events as the Fed Board of Governors prepares for its next meeting on September 16–17.

As we have said in past reports, most of our municipal bond funds maintain a conservative posture and shorter durations relative to the market.

While rising rates can adversely impact bond prices in the short term, it is important to remember that over time they can benefit fixed-income investors. Proceeds from maturing bonds can be reinvested at higher yields, which can lead to better total return opportunities. What’s more, Fed officials have indicated that once the central bank begins raising rates, it will do so at a gradual pace.

In addition, we believe that our bottom-up fundamental research process can help us avoid troubled issuers in the market and identify bonds that can add value for our investors. We remain vigilant in our efforts to maintain an appropriate balance between risk and potential reward, continuously mindful of the potential for heightened volatility.

We look forward to reporting back to you in six months’ time.

Sincerely,

Brenda S. Ellerin

President, American Funds Short-Term

Tax-Exempt Bond Fund and Limited Term

Tax-Exempt Bond Fund of America

Neil L. Langberg

President, The Tax-Exempt Bond Fund

of America and The Tax-Exempt Fund

of California

Karl J. Zeile

President, American High-Income

Municipal Bond Fund and American

Funds Tax-Exempt Fund of New York

September 10, 2015

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

2	American Funds Tax-Exempt Funds

Funds’ 30-day yields

Below is a summary of each fund’s 30-day yield and 12-month distribution rate for Class A shares as of August 31, 2015. Both measures reflect the 2.50%/3.75% maximum sales charge. Each fund’s 30-day yield is calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula. The SEC yield reflects the rate at which each fund is earning income on its current portfolio of securities while the distribution rate reflects the funds’ past dividends paid to shareholders. Accordingly, the funds’ SEC yields and distribution rates may differ. The equivalent taxable yield assumes a 43.4% tax rate.¹

	SEC			Equivalent			12-month
Class A shares	30-day yield			taxable yield			distribution rate

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		0.60	%		1.06	%		1.02	%
Limited Term Tax-Exempt Bond Fund of America		0.94			1.66			2.31

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		1.79			3.16			3.15
American High-Income Municipal Bond Fund		3.04			5.37			3.91
The Tax-Exempt Fund of California		1.35			2.75	²		3.24
American Funds Tax-Exempt Fund of New York		1.82			3.68	³		2.75

¹	Based on 2015 federal tax rates. For the year 2015, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
²	For investors in the 50.93% federal and California state tax bracket.
³	For investors in the 50.59% federal, New York state and New York City tax bracket.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Income may be subject to state or local income taxes and/or federal alternative minimum taxes. Also, certain other income (such as distributions from gains on the sale of certain bonds purchased at less than par value, for The Tax-Exempt Bond Fund of America), as well as capital gain distributions, may be taxable. High-yield/lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade/higher rated bonds. The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York are more susceptible to factors adversely affecting issuers of each state’s tax-exempt securities than a more widely diversified municipal bond fund. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

The fund registered a total return of 0.26% for the fiscal year ended July 31, 2015, slightly trailing the 0.31% increase of the Lipper Short Municipal Debt Funds Average, a peer group measure. By way of comparison, the unmanaged Barclays Municipal Short 1–5 Years Index, which has no expenses, recorded a 0.91% gain. Investors cannot invest directly in an index.

The fund paid monthly dividends totaling 10.7 cents a share for the year. This amounts to a federally tax-exempt income return of 1.05% for investors who reinvested dividends. That is equivalent to a taxable income return of 1.86% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

Throughout the year, the fund’s managers maintained a conservative stance. In anticipation of rising interest rates, the portfolio emphasized shorter duration holdings. Issues from a variety of sectors contributed to the fund’s overall return. Among the most additive were revenue bonds supporting single-family housing units, hospital facilities and airports.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 1.02% tax-exempt distribution rate³as of July 31, 2015.

									The fund’s tax-exempt
If your taxable income is …						... then your federal			distribution rate of 1.02% is
Single			Joint			tax rate is …			equivalent to a taxable rate of ...

$	0 –	9,225	$	0 –	18,450		10.0	%		1.13	%
	9,226 –	37,450		18,451 –	74,900		15.0			1.20
	37,451 –	90,750		74,901 –	151,200		25.0			1.36
	90,751 –	189,300		151,201 –	230,450		28.0			1.42
	189,301 –	411,500		230,451 –	411,500		36.8	¹		1.61
	411,501 –	413,200		411,501 –	464,850		38.8	¹		1.67
	Over 413,200			Over 464,850			43.4	¹		1.80

For the year 2015, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.

Based on 2015 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.

The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 2.50% on the $10,000 investment.¹Thus, the net amount invested was $9,750. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

4	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	Consists of the Lipper Tax-Exempt Money Market Funds Index through July 31, 2009 (the period ended prior to the fund’s conversion from a tax-exempt money market fund to a short-term tax-exempt bond fund), and the Barclays Municipal Short 1–5 Years Index thereafter. Results of the Lipper Tax-Exempt Money Market Funds Index do not reflect any sales charges. The Barclays index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
³	Prior to August 7, 2009, the fund was operated as a money market fund and did not have an initial sales charge.
⁴	In 2009, the fund changed its fiscal year-end from September 30 to July 31.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	5 years	10 years

Class A shares	–2.22%	0.60%	1.42%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

The 10-year investment result includes the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore is not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of that period. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.

Portfolio quality summary*

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies. The ratings are not covered by the Report of Independent Registered Public Accounting Firm.

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

The fund generated a 1.23% total return for the 12 months ended July 31. That result lagged the 1.83% gain of the unmanaged Barclays Municipal Short-Intermediate 1–10 Years Index, which has no expenses. Investors cannot invest directly in an index. The fund’s result also trailed the 1.57% total return of the Lipper Intermediate Municipal Debt Funds Average, a peer group measure.

For the fiscal year, the fund paid monthly dividends totaling about 37.7 cents a share. Those individuals who reinvested dividends received a federally tax-exempt income return of 2.37%. This is equivalent to a taxable income return of 4.19% for investors in the 43.4%¹maximum federal tax bracket.

As mentioned in recent reports, the fund’s managers have maintained a conservative approach, seeking to maintain a relatively short duration. This hindered returns in the first six months of the period. However, the fund regained a good deal of ground during the more volatile second half of the fiscal year. Select holdings of bonds supporting airports and hospitals, the fund’s two largest concentrations, generated some of the strongest returns.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.31% tax-exempt distribution rate³as of July 31, 2015.

									The fund’s tax-exempt
If your taxable income is …						... then your federal			distribution rate of 2.31% is
Single			Joint			tax rate is …			equivalent to a taxable rate of ...

$	0 –	9,225	$	0 –	18,450		10.0	%		2.57	%
	9,226 –	37,450		18,451 –	74,900		15.0			2.72
	37,451 –	90,750		74,901 –	151,200		25.0			3.08
	90,751 –	189,300		151,201 –	230,450		28.0			3.21
	189,301 –	411,500		230,451 –	411,500		36.8	¹		3.66
	411,501 –	413,200		411,501 –	464,850		38.8	¹		3.77
	Over 413,200			Over 464,850			43.4	¹		4.08

¹	For the year 2015, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2015 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 2.50% on the $10,000 investment.¹ Thus, the net amount invested was $9,750.² Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

6	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The maximum initial sales charge was 3.75% until October 31, 2006.
³	The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	5 years	10 years

Class A shares	–1.29%	2.29%	3.14%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

Portfolio quality summary*

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

The fund delivered a 3.62% total return for the fiscal year. This result slightly exceeded both the 3.56% gain of the unmanaged Barclays Municipal Bond Index, which has no expenses, and the 3.52% total return of the Lipper General & Insured Municipal Debt Funds Average, a peer group measure. Investors cannot invest directly in an index.

During the period, the fund paid monthly dividends totaling about 42.4 cents a share, amounting to a federally tax-exempt income return of 3.33% for investors who reinvested dividends. This is equivalent to a taxable income return of 5.88% for investors in the 43.4%¹maximum federal tax bracket. The fund does not invest in bonds subject to the Alternative Minimum Tax (AMT).

The fund’s managers continued on a relatively conservative path during the fiscal year, focusing on shorter duration securities. While this approach held the fund back slightly in relative terms during the rally in the first six months of the period, it helped the fund outpace the broader market during the more volatile second half. The fund’s managers continue to seek out opportunities for incremental yield while paying close attention to risk. Among the strongest contributions to the fund’s results were holdings of revenue bonds supporting hospital facilities and toll roads.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.15% tax-exempt distribution rate³as of July 31, 2015.

									The fund’s tax-exempt
If your taxable income is …						... then your federal			distribution rate of 3.15% is
Single			Joint			tax rate is …			equivalent to a taxable rate of ...

$	0 –	9,225	$	0 –	18,450		10.0	%		3.50	%
	9,226 –	37,450		18,451 –	74,900		15.0			3.71
	37,451 –	90,750		74,901 –	151,200		25.0			4.20
	90,751 –	189,300		151,201 –	230,450		28.0			4.38
	189,301 –	411,500		230,451 –	411,500		36.8	¹		4.98
	411,501 –	413,200		411,501 –	464,850		38.8	¹		5.15
	Over 413,200			Over 464,850			43.4	¹		5.57

¹	For the year 2015, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2015 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment.¹ Thus, the net amount invested was $9,625. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

8	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	5 years	10 years

Class A shares	–0.24%	3.96%	3.87%

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

Portfolio quality summary*

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

The fund posted a 5.34% gain for the fiscal year ended July 31, 2015, exceeding the 2.63% total return of the Barclays High Yield Municipal Bond Index. By way of comparison, the Barclays Municipal Bond Index, a broad measure of the investment-grade tax-exempt market, posted a 3.56% total return. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. The Lipper High Yield Municipal Debt Funds Average, a measure of the fund’s peer group, also rose 5.34%.

The fund paid monthly dividends totaling 62.7 cents a share, amounting to a federally tax-exempt income return of 4.19% for investors who reinvested dividends. This is equivalent to a taxable income return of 7.40% for investors in the 43.4%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

While Puerto Rico’s unfolding debt crisis hindered the high-yield sector, the fund’s relatively light concentration of holdings from the country helped it outpace the broader high-yield market for the period. Bonds backing hospitals and senior living facilities, two of the fund’s largest concentrations, also supported results.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.92% tax-exempt distribution rate³as of July 31, 2015.

									The fund’s tax-exempt
If your taxable income is …						... then your federal			distribution rate of 3.92% is
Single			Joint			tax rate is …			equivalent to a taxable rate of ...

$	0 –	9,225	$	0 –	18,450		10.0	%		4.36	%
	9,226 –	37,450		18,451 –	74,900		15.0			4.61
	37,451 –	90,750		74,901 –	151,200		25.0			5.23
	90,751 –	189,300		151,201 –	230,450		28.0			5.44
	189,301 –	411,500		230,451 –	411,500		36.8	¹		6.20
	411,501 –	413,200		411,501 –	464,850		38.8	¹		6.41
	Over 413,200			Over 464,850			43.4	¹		6.93

¹	For the year 2015, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 43.4% marginal tax rate on their investment income.
²	Based on 2015 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

10	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	5 years	10 years

Class A shares	1.41%	5.79%	4.17%

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

Portfolio quality summary*

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

The fund produced a 3.98% total return for the period. That result exceeded the 3.80% return of the unmanaged Barclays California Municipal Index, which has no expenses. Investors cannot invest directly in an index. The fund trailed the 4.31% total return of the Lipper California Municipal Debt Funds Average, a peer group measure.

For the period, the fund paid monthly dividends totaling about 59.2 cents a share. Those investors who reinvested dividends received an income return of 3.43%. This is equivalent to a taxable income return of 6.99% for investors in the 50.93% effective combined federal and California tax bracket.

The improving health of California’s economy and overall fiscal condition has resulted in a brighter outlook generally for municipal budgets across the state. The fund’s return was supported by positive contributions from holdings representing a broad range of sectors, credit quality and duration. Revenue bonds backing hospitals and higher education facilities produced some of the portfolio’s strongest gains during the fiscal year.

Tax-exempt yields vs. taxable yields

Find your estimated 2015 taxable income below to determine your combined federal and California tax rate,* then look in the right-hand column to see what you would have had to earn from a taxable investment to equal the fund’s 3.23% tax-exempt distribution rate^†at July 31, 2015.

						... then your combined			The fund’s tax-exempt
If your taxable income is …						federal and California			distribution rate of 3.23% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of ...

$	0 –	7,749	$	0 –	15,498		10.90	%		3.63	%
	7,750 –	9,225		15,499 –	18,450		11.80			3.66
	9,226 –	18,371		18,451 –	36,742		16.70			3.88
	18,372 –	28,995		36,743 –	57,990		18.40			3.96
	28,996 –	37,450		57,991 –	74,900		20.10			4.04
	37,451 –	40,250		74,901 –	80,500		29.50			4.58
	40,251 –	50,689		80,501 –	101,738		31.00			4.68
	50,690 –	90,750		101,739 –	151,200		31.98			4.75
	90,751 –	189,300		151,201 –	230,450		34.70			4.95
	189,301 –	259,844		230,451 –	411,500		42.68			5.63
	259,845 –	311,812		–			43.31			5.70
	311,813 –	411,500		–			43.94			5.76
	–			411,501 –	464,850		44.49			5.82
	411,501 –	413,200		–			45.72			5.95
	–			464,851 –	519,688		48.66			6.29
	–			519,689 –	623,624		49.23			6.36
	413,201 –	519,867		623,625 –	1,000,000		49.80			6.43
	519,868 –	1,000,000		1,000,001 –	1,039,374		50.36			6.51
	Over 1,000,000			Over 1,039,374			50.93			6.58

*	Based on 2015 federal and 2015 California tax rates. (State rates from 1.0% to 13.3% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates paid by California residents may be lower than those shown due to the availability of income tax deductions.
^†	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gains distributions, if any, are added back at the maximum offering price to determine the rate.

12	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	5 years	10 years

Class A shares	0.09%	4.74%	4.15%

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

Portfolio quality summary*

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

The fund registered a total return of 3.65% for the 12 months ended July 31, 2015. By way of comparison, the unmanaged Barclays New York Municipal Index, which has no expenses, climbed 3.72%. Investors cannot invest directly in an index. The Lipper New York Municipal Debt Funds Average, a peer group measure, advanced 3.86%.

The fund paid monthly dividends totaling 30.5 cents a share for the fiscal year. This represents an income return of 2.92% for those who reinvested dividends. For investors in the 50.59% combined effective federal, New York state and New York City tax bracket, this is equivalent to a taxable income return of 5.91%.

Over the period, the fund was helped by contributions from a broad spectrum of holdings. Revenue bonds supporting higher education and hospital facilities proved particularly beneficial. State general obligation bonds detracted slightly from the overall positive return.

Tax-exempt yields vs. taxable yields

Find your estimated 2015 taxable income below to determine your combined federal and New York state tax rate,^1,2then look in the right-hand column to see what you would have had to earn from a taxable investment to equal the fund’s 2.76% tax-exempt distribution rate³at July 31, 2015.

						... then your combined			The fund’s tax-exempt
If your taxable income is …						federal and New York			distribution rate of 2.76% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of ...

$	0 –	8,400	$	0 –	16,950		13.60	%		3.19	%
	8,401 –	9,225		16,951 –	18,450		14.05			3.21
	9,226 –	11,600		18,451 –	23,300		18.83			3.40
	11,601 –	13,750		23,301 –	27,550		19.46			3.43
	13,751 –	21,150		27,551 –	42,450		20.02			3.45
	21,151 –	37,450		42,451 –	74,900		20.48			3.47
	37,451 –	79,600		74,901 –	151,200		29.84			3.93
	79,601 –	90,750		–			29.99			3.94
	–			151,201 –	159,350		32.64			4.10
	90,751 –	189,300		159,351 –	230,450		32.79			4.11
	189,301 –	212,500		230,451 –	318,750		41.00			4.68
	212,501 –	411,500		318,751 –	411,500		41.13			4.69
	411,501 –	413,200		411,501 –	464,850		42.99			4.84
	413,201 –	1,062,650		464,851 –	2,125,450		47.28			5.24
	Over 1,062,650			Over 2,125,450			48.39			5.35

¹	Income generated by the fund’s investments is also generally exempt from New York City taxes, offering additional tax advantages to New York City residents.
²	Based on 2015 federal and New York state tax rates. (State rates from 4.00% to 8.82% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates assume full deductibility of state taxes.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2015. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

14	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

(for the period November 1, 2010, to July 31, 2015, with dividends reinvested)

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2015*
	1 year	Lifetime (since 11/1/10)

Class A shares	–0.21%	3.52%

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

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. The investment adviser is currently reimbursing a portion of other expenses. This reimbursement will be in effect through at least September 30, 2015, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Visit americanfunds.com for more information.

Portfolio quality summary*

American Funds Tax-Exempt Funds

Results at a glance

For periods ended July 31, 2015, with distributions reinvested

	Cumulative total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime¹

American Funds Short-Term Tax-Exempt Bond Fund (Class A shares)		0.26	%		1.11	%		—	%		1.44	%
Barclays Municipal Short 1–5 Years Index²		0.91			1.58			—			1.97
Lipper Short Municipal Debt Funds Average		0.31			1.00			—			1.33

Limited Term Tax-Exempt Bond Fund of America (Class A shares)		1.23			2.80			3.40			4.17
Barclays Municipal Short-Intermediate 1–10 Years Index³		1.83			2.75			3.80			4.40
Lipper Intermediate Municipal Debt Funds Average		1.57			3.17			3.57			4.40

The Tax-Exempt Bond Fund of America (Class A shares)		3.62			4.76			4.27			6.68
Barclays Municipal Bond Index		3.56			4.39			4.57			—	⁴
Lipper General & Insured Municipal Debt Funds Average		3.52			4.51			3.92			6.62

American High-Income Municipal Bond Fund (Class A shares)		5.34			6.60			4.57			5.64
Barclays Municipal Bond Index		3.56			4.39			4.57			5.62
Barclays High Yield Municipal Bond Index		2.63			6.06			4.51			—	⁴
Lipper High-Yield Municipal Debt Funds Average		5.34			5.78			3.80			5.10

The Tax-Exempt Fund of California (Class A shares)		3.98			5.54			4.55			5.73
Barclays California Municipal Index		3.80			5.20			4.84			—	⁴
Lipper California Municipal Debt Funds Average		4.31			5.28			4.16			5.71

American Funds Tax-Exempt Fund of New York (Class A shares)		3.65			—			—			4.35
Barclays New York Municipal Index		3.72			—			—			4.08
Lipper New York Municipal Debt Funds Average		3.86			—			—			3.68

¹	Since 8/7/09 (American Funds Short-Term Tax-Exempt Bond Fund), 10/6/93 (Limited Term Tax-Exempt Bond Fund of America), 10/3/79 (The Tax-Exempt Bond Fund of America), 9/26/94 (American High-Income Municipal Bond Fund), 10/28/86 (The Tax-Exempt Fund of California) and 11/1/10 (American Funds Tax-Exempt Fund of New York).
²	Barclays Municipal Short 1–5 Years Index is a market value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to five years.
³	Barclays Municipal Short-Intermediate 1–10 Years Index is a market value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years.
⁴	This index did not exist at the fund’s inception.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category.

16	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Summary investment portfolio July 31, 2015

Bonds, notes & other debt instruments 93.51%	Principal amount (000)		Value (000)
California 7.98%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.92% 2045 (put 2023)¹	$	6,600	$	6,480
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-E-3, 0.72% 2047 (put 2019)¹		3,000		2,989
G.O. Bonds, Series 2012-A, 0.47% 2033 (put 2018)¹		1,500		1,491
Various Purpose G.O. Bonds, 3.00% 2016		2,500		2,569
Various Purpose G.O. Ref. Bonds, 5.00% 2018		3,000		3,332
Los Angeles County Metropolitan Transportation Auth., Proposition A, Sales Tax Rev. Ref. Bonds, Series 2013-A, 5.00% 2018		3,000		3,367
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 4.00% 2018		2,500		2,707
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2017		2,510		2,719
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2018		1,085		1,208
Oakland Redev. Successor Agcy., Tax Allocation Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2019		1,000		1,140
Other securities				29,959
				57,961

Connecticut 1.46%
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2014-C-1, 4.00% 2044		960		1,042
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, 4.00% 2044		1,760		1,892
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2012-F-2, AMT, 2.75% 2035		790		797
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-A, 3.50% 2044		3,500		3,726
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-C-1, 3.50% 2045		2,000		2,134
Other securities				999
				10,590

Florida 6.82%
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2017		1,000		1,074
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2019		7,450		8,424
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2010-A, 5.00% 2016 (escrowed to maturity)		5,295		5,522
City of Lakeland, Energy System Rev. Ref. Bonds, Series 2012, 0.77% 2017¹		3,800		3,810
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2005-B, AMT, Assured Guaranty Municipal insured, 5.00% 2016		3,000		3,024
City of Tampa, Utility Tax Rev. Ref. Bonds, National insured, 5.00% 2015		3,615		3,644
Other securities				24,035
				49,533

Georgia 3.14%
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds (Third Indenture Series), Series 2014-A, 0.32% 2025 (put 2017)¹		5,250		5,234
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds, Series 2014-B, 0.30% 2025 (put 2017)¹		3,500		3,488
Other securities				14,068
				22,790

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Illinois 6.47%
Build Bonds (Sales Tax Rev. Bonds), Series June 2013, 5.00% 2020	$	3,500	$	4,037
Education Facs. Auth. Rev. Bonds (University of Chicago), Series 1998-B, 1.65% 2025 (put 2019)		10,390		10,425
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 2001-B-1, 1.10% 2036 (put 2018)		1,250		1,245
Unemployment Insurance Fund Building Receipts Rev. Bonds (Illinois Dept. of Employment Security), Series 2012-A, 5.00% 2016		4,000		4,252
Other securities				27,015
				46,974

Indiana 1.31%
Health and Educational Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2005-A-5, 2.00% 2027 (put 2017)		2,000		2,047
Other securities				7,485
				9,532

Maryland 0.95%
Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. Bonds, Series 2014-B, AMT, 3.25% 2044		3,135		3,277
Other securities				3,601
				6,878

Massachusetts 4.48%
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System Issue), Series 2012-L, 5.00% 2016		890		928
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System), Series 2014-M-3, 0.57% 2038 (put 2018)¹		6,040		6,025
Dev. Fin. Agcy., Rev. Ref. Bonds (Partners HealthCare System Issue), Series 2011-K-4, 5.00% 2035 (put 2016)		500		511
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2014-I, AMT, 5.00% 2021		3,000		3,352
G.O. Bonds, Consolidated Loan of 2012, Series A, 0.47% 2015¹		2,500		2,500
G.O. Bonds, Consolidated Loan of 2012, Series A, 0.54% 2016¹		2,000		2,005
G.O. Bonds, Consolidated Loan of 2012, Series D, 0.45% 2018¹		1,000		996
G.O. Bonds, Consolidated Loan of 2014, Series D-2, 0.32% 2043 (put 2017)¹		2,000		1,988
Housing Fin. Agcy., Single-family Housing Rev. Bonds, Series 167, 4.00% 2043		1,025		1,101
Housing Fin. Agcy., Single-family Housing Rev. Bonds, Series 169, 4.00% 2044		970		1,053
Housing Fin. Agcy., Single-family Housing Rev. Bonds, Series 172, 4.00% 2045		1,600		1,740
Housing Fin. Agcy., Single-family Housing Rev. Ref. Bonds, Series 160, AMT, 3.75% 2034		600		609
Housing Fin. Agcy., Single-family Housing Rev. Ref. Bonds, Series 162, 2.75% 2041		645		662
Housing Fin. Agcy., Single-family Housing Rev. Ref. Bonds, Series 165, 2.65% 2041		2,050		2,113
Housing Fin. Agcy., Single-family Housing Rev. Ref. Bonds, Series 171, 4.00% 2044		1,000		1,084
Housing Fin. Agcy., Single-family Housing Rev. Ref. Bonds, Series 177, AMT, 4.00% 2039		2,000		2,146
Other securities				3,722
				32,535

Michigan 4.12%
State Hospital Fin. Auth., Project Rev. Ref. Bonds (Ascension Health Credit Group), Series 2010-F3, 1.40% 2047 (put 2018)		1,500		1,509
Other securities				28,406
				29,915

Minnesota 1.85%
Housing Fin. Agcy., Homeownership Fin. Bonds (Mortgage-Backed Securities Program), Series 2011-G, 4.25% 2035		830		870
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2012-D, 4.00% 2040		1,110		1,169
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031		895		911
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-A, 4.00% 2038		1,420		1,531
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-C, AMT, 4.00% 2045		5,310		5,749
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-A, AMT, 4.00% 2041		1,000		1,079
Other securities				2,140
				13,449

18	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount		Value
		(000)		(000)
Missouri 1.38%
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport), Series 2007-B, AMT, Assured Guaranty Municipal insured, 5.00% 2016	$	5,000	$	5,202
Other securities				4,819
				10,021

Nebraska 2.00%
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2016		2,000		2,061
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2017		1,045		1,118
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019)		4,200		4,793
Other securities				6,552
				14,524

New Jersey 3.90%
Econ. Dev. Auth., School Facs. Construction Bonds, Assured Guaranty Municipal insured, Subseries J-5, 5.00% 2029 (preref. 2015)		2,000		2,008
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2010-DD-1, 5.00% 2016		1,500		1,573
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2014-PP, 5.00% 2019		4,000		4,326
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Notes, Series 2014, 0.75% 2017¹		750		740
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 4.00% 2017		3,500		3,693
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1A, AMT, 5.00% 2018		2,000		2,201
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 4.00% 2017		1,750		1,847
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 5.00% 2016		1,000		1,054
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1A1, AMT, 5.00% 2018		2,250		2,476
Other securities				8,369
				28,287

New York 11.53%
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2015-B-A, 5.00% 2017		3,000		3,206
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2011-A, 5.00% 2017		2,500		2,680
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2020		2,000		2,323
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-B-1, 5.00% 2015		2,000		2,028
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2019		750		835
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2020		2,000		2,339
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 0.60% 2039 (put 2020)¹		6,250		6,165
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, 3.50% 2034		3,700		3,887
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.57% 2025¹		5,000		4,966
City of New York, G.O. Bonds, Fiscal 2010 Series C, 5.00% 2015		1,000		1,000
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2015		1,000		1,000
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2015		1,000		1,000
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2017		1,000		1,085
City of New York, G.O. Bonds, Fiscal 2012 Series I, 5.00% 2018		1,000		1,118
City of New York, G.O. Bonds, Fiscal 2014 Series A-6, 0.52% 2031¹		2,500		2,489
City of New York, G.O. Bonds, Series 2014-A, 5.00% 2020		1,500		1,752
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2017		3,000		3,199
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2015		1,500		1,509
Port Auth., Consolidated Rev. Ref. Bonds, Series 169, AMT, 5.00% 2015		2,000		2,020
Port Auth., Consolidated Rev. Ref. Bonds, Series 169, AMT, 5.00% 2017		1,000		1,088
Port Auth., Consolidated Rev. Ref. Bonds, Series 185, AMT, 5.00% 2020		2,000		2,313

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2021	$	2,000	$	2,331
Thruway Auth., General Rev. Junior Indebtedness Obligations Series 2013-A, 5.00% 2019		4,700		5,341
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2020		2,900		3,016
Other securities				25,026
				83,716

North Dakota 0.60%
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2012-A, 3.75% 2042		2,890		3,079
Other securities				1,277
				4,356

Ohio 1.88%
City of Cleveland, Airport System Rev. Ref. Bonds, Series 2011-A, Assured Guaranty Municipal insured, 5.00% 2016		4,500		4,586
Other securities				9,097
				13,683

Oregon 1.47%
Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2013-C, 1.02% 2022 (put 2018)¹		3,000		3,008
G.O. Bonds (Veterans’ Welfare Bonds Series 94), Series 2014-H, 4.00% 2044		3,460		3,721
Other securities				3,946
				10,675

Pennsylvania 1.46%
Econ. Dev. Fncg. Auth., Unemployment Compensation Rev. Bonds, Series 2012-B, 5.00% 2021		4,000		4,375
Other securities				6,255
				10,630

Rhode Island 1.18%
Health and Educational Building Corp., Hospital Fncg. Rev. Ref. Bonds (Lifespan Obligated Group Issue), Series 2006-A, Assured Guaranty Municipal insured, 5.00% 2016		3,000		3,095
Housing and Mortgage Fin. Corp., Homeownership Opportunity Bonds, Series 66-A-1, 4.00% 2033		3,620		3,892
Other securities				1,590
				8,577

Tennessee 2.20%
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-1-C, 4.50% 2037		1,060		1,132
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2012-2-C, 4.00% 2038		775		828
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2011-1-A, AMT, 4.50% 2031		1,895		2,016
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Issue 2012-1-A, AMT, 4.50% 2038		895		955
Housing Dev. Agcy., Residential Fin. Program Bonds, Issue 2013-1-C, 3.00% 2038		1,630		1,695
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043		875		939
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-1-A, AMT, 4.00% 2039		1,945		2,087
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-A, AMT, 4.00% 2045		1,605		1,730
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-C, 4.00% 2045		1,215		1,322
Other securities				3,293
				15,997

Texas 9.16%
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Ref. Bond Anticipation Notes, Series 2014-A, 3.00% 2016		8,150		8,404
City of Houston, Public Improvement Ref. Bonds, Series 2011-A, 5.00% 2016		7,700		7,916
Houston Independent School Dist. (Harris County), Limited Tax Schoolhouse Bonds, Series 2013-B, 2.00% 2037 (put 2016)		3,400		3,443
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, 5.00% 2018		2,000		2,208

20	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount		Value
		(000)		(000)
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2012-C, 2.00% 2027 (put 2016)	$	1,160	$	1,181
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-B, 0.40% 2033 (put 2018)¹		4,500		4,475
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, 0.40% 2041 (put 2018)¹		6,500		6,484
Other securities				32,431
				66,542

Virginia 0.48%
Commonwealth Transportation Board, Federal Transportation Grant Anticipation Rev. Notes, Series 2013-A, 5.00% 2020		3,000		3,493

Washington 3.91%
Energy Northwest, Electric Rev. Ref. Bonds (Project 1), Series 2012-A, 5.00% 2017		5,000		5,416
Other securities				23,001
				28,417

Wisconsin 1.54%
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-2, 4.00% 2043 (put 2019)		1,000		1,101
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Alliance Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020)		2,500		2,903
Other securities				7,196
				11,200

Other states & U.S. territories 12.24%
Other securities				88,769

Total bonds, notes & other debt instruments (cost: $674,347,000)				679,044

Short-term securities 7.80%
State of California, G.O. Bonds, Series 2004-A-4, 0.01% 2034¹	2,100		2,100
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 1.75% 6/28/2016	15,000		15,203
District of Columbia, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 9/30/2015	5,950		5,964
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016	2,800		2,822
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016	2,200		2,217
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.01% 2035¹	1,400		1,400
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-I, 0.01% 2035¹	4,400		4,400
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 1996-A, 0.01% 2030¹	3,500		3,500
State of New York, City of New York, G.O. Bonds, Fiscal 1994 Series E-2, 0.01% 2020¹	500		500
State of Tennessee, Public Building Auth. of the County of Montgomery, Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool), Series 2002, Bank of America LOC, 0.03% 2032¹	3,485		3,485
State of Texas, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 8/31/2015	10,000		10,012
Other securities			5,045

Total short-term securities (cost: $56,640,000)			56,648
Total investment securities 101.31% (cost: $730,987,000)			735,692
Other assets less liabilities (1.31)%			(9,480	)

Net assets 100.00%		$	726,212

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. A security within “Other securities” (with a value of $2,530,000, which represented .35% of the net assets of the fund) was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

22	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2015

Bonds, notes & other debt instruments 94.30%	Principal amount (000)			Value (000)
California 13.03%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.92% 2045 (put 2023)¹	$	20,500	$	20,127
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-C-1, 0.92% 2047 (put 2023)¹		3,500		3,436
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2007-E-3, 0.72% 2047 (put 2019)¹		1,000		996
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-G, 0.62% 2034 (put 2020)¹		1,500		1,485
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-H, 0.72% 2034 (put 2021)¹		10,480		10,370
Econ. Recovery Bonds, Ref. Series 2009-A, 5.00% 2020		9,000		10,392
G.O. Bonds, Series 2012-A, 0.47% 2033 (put 2018)¹		5,000		4,969
G.O. Bonds, Series 2013-C, 0.57% 2028 (put 2016)¹		5,000		5,003
Various Purpose G.O. Bonds, 3.00% 2016		10,000		10,277
Various Purpose G.O. Ref. Bonds, 5.00% 2021		5,000		5,968
Various Purpose G.O. Ref. Bonds, 5.00% 2023		6,500		7,787
City of Long Beach, Harbor Rev. Ref. Bonds, Series 1998-A, AMT, FGIC-National insured, 6.00% 2016		8,430		8,797
Port of Oakland, Rev. Ref. Bonds, Series 2012-P, AMT, 5.00% 2021		7,750		9,001
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Ref. Bonds (Republic Services, Inc. Project), Series 2002-C, AMT, 5.25% 2023 (put 2017)²		8,250		8,844
Public Facs. Fncg. Auth. of the City of San Diego, Sewer Rev. Bonds, Series 2009-A, 5.00% 2017		8,500		9,181
Other securities				298,154
				414,787

Connecticut 1.01%
Special Tax Obligation Ref. Bonds, Transportation Infrastructure Purposes, Series 2009-1, 5.00% 2019		8,550		9,687
Other securities				22,579
				32,266

District of Columbia 1.15%
University Rev. Bonds (Georgetown University Issue), Series 2001-B, 4.70% 2031 (put 2018)		8,500		9,232
Other securities				27,442
				36,674

Florida 9.16%
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 5.50% 2017		10,035		10,866
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2022		10,200		11,888
Miami-Dade County, Aviation Rev. Bonds, Series 2010-A, 5.00% 2021		2,250		2,567
Miami-Dade County, Aviation Rev. Ref. Bonds, AMT, 5.00% 2023		945		1,100
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2020		2,000		2,299
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2021		11,600		13,400
Miami-Dade County, Aviation Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2027		1,325		1,497
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2003-E, AMT, National insured, 5.375% 2017		2,000		2,190
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2005-B, AMT, XLCA insured, 5.00% 2018		1,000		1,008
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-A, 5.75% 2022		1,500		1,746
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.50% 2018		3,580		4,064
Miami-Dade County, Miami International Airport (Hub of the Americas), Aviation Rev. Ref. Bonds, Series 2009-B, 5.75% 2021		2,000		2,336
Putnam County Dev. Auth., Pollution Control Rev. Ref. Bonds (Seminole Electric Cooperative, Inc. Project), Series 2007-B, AMBAC insured, 5.35% 2042 (put 2018)		10,370		11,495
Other securities				225,061
				291,517

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
Georgia 2.93%
DeKalb County Hospital Auth., Rev. Ref. Anticipation Certificates (DeKalb Medical Center, Inc. Project), Series 2010, 5.25% 2020	$	8,750	$	9,907
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev. Ref. Bonds, Series 2014-B, 0.30% 2025 (put 2017)¹		9,000		8,970
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		16,000		18,187
Public Gas Partners, Inc., Gas Project Rev. Ref. Bonds (Gas Supply Pool No. 1), Series A, 5.00% 2018		10,930		12,233
Other securities				44,048
				93,345

Hawaii 0.80%
Airports System Rev. Bonds, Series 2010-B, AMT, 5.00% 2018		9,900		10,975
Other securities				14,581
				25,556

Illinois 7.28%
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2013-A, AMT, 5.00% 2022		3,055		3,459
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2017		1,500		1,589
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2019		2,785		3,117
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2012-B, AMT, 5.00% 2024		2,000		2,216
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2005-B, National insured, 5.25% 2016		1,000		1,020
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2008-A, Assured Guaranty Municipal insured, 5.00% 2019		2,000		2,179
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2025		6,170		6,787
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2021		10,000		11,286
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2023		5,000		5,682
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2018		2,000		2,168
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2019		2,000		2,215
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2013-B, AMT, 5.00% 2022		3,000		3,396
Regional Transportation Auth. of Cook, DuPage, Kane, Lake, McHenry and Will Counties, G.O. Rev. Ref. Bonds, Series 2003-A, FGIC-National insured, 5.50% 2018		7,720		8,704
Housing Dev. Auth., Multifamily Housing Rev. Notes (Marshall Field Garden Apartment Homes), 1.02% 2050 (put 2025)¹		9,500		9,435
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.50% 2023		12,425		14,366
Other securities				154,189
				231,808

Indiana 3.16%
Fin. Auth., Private Activity Bonds (Ohio River Bridges East End Crossing Project), Series 2013-B, AMT, 5.00% 2019		10,440		10,987
Indianapolis Airport Auth., Special Fac. Rev. Ref. Bonds (Federal Express Corp. Project), Series 2004, AMT, 5.10% 2017		20,545		21,772
Other securities				67,797
				100,556

Kentucky 1.29%
Public Transportation Infrastructure Auth., Toll Rev. Bond Anticipation Notes (Downtown Crossing Project), Series 2013-A, 5.00% 2017		8,625		9,287
Other securities				31,658
				40,945

24	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount (000)			Value (000)
Maryland 0.81%
Transportation Auth., Airport Parking Rev. Ref. Bonds (Baltimore/Washington International Thurgood Marshall Airport Projects), Series 2012-B, AMT, 5.00% 2020	$	8,150	$	9,308
Other securities				16,356
				25,664

Michigan 4.95%
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.25% 2016		3,000		3,044
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2007, AMT, FGIC-National insured, 5.00% 2018		1,000		1,084
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2008-A, AMT, Assured Guaranty insured, 5.25% 2018		1,180		1,253
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2017		1,615		1,753
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2018		3,590		4,000
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2019		1,000		1,135
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		10,000		11,442
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2021		8,240		9,495
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-B, 5.00% 2019		1,000		1,142
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2019		3,560		4,041
Other securities				119,107
				157,496

Nebraska 0.77%
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019)		8,800		10,044
Other securities				14,363
				24,407

Nevada 2.15%
Clark County, Highway Rev. (Motor Vehicle Fuel Tax) Ref. Bonds, Series 2011, 5.00% 2020		12,320		14,315
Clark County, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020)		8,500		8,502
Las Vegas Valley Water Dist., G.O. (Limited Tax) Ref. Bonds, Series 2011-C, 5.00% 2019		7,760		8,882
Other securities				36,666
				68,365

New York 9.84%
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2003-B, FGIC-National insured, 5.25% 2020		5,500		6,505
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018		6,980		7,467
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-A2, 0.29% 2041 (put 2016)¹		1,000		1,000
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2020		3,250		3,801
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2021		3,470		3,885
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2024		5,000		6,040
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2027		3,150		3,697
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 0.60% 2039 (put 2020)¹		11,250		11,098
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-G-1H, 0.975% 2026 (put 2016)¹		2,650		2,666
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2011-C, 5.00% 2018		1,105		1,246

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
New York (continued)
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2020	$	7,000	$	8,187
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-F, 5.00% 2021		1,000		1,178
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2014-A-2, 5.00% 2028		3,000		3,465
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.57% 2025¹		6,325		6,281
City of New York, G.O. Bonds, Fiscal 2009 Series H-1, 5.00% 2016		2,000		2,055
City of New York, G.O. Bonds, Fiscal 2011 Series B, 5.00% 2015		3,500		3,500
City of New York, G.O. Bonds, Fiscal 2011 Series I-1, 5.00% 2017		5,000		5,426
City of New York, G.O. Bonds, Fiscal 2012 Series I, 5.00% 2020		5,000		5,840
City of New York, G.O. Bonds, Series 2013-E, 5.25% 2022		5,000		6,022
City of New York, G.O. Bonds, Series 2014-A, 5.00% 2025		3,000		3,590
City of New York, G.O. Bonds, Series 2014-G, 5.00% 2023		1,500		1,798
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028		1,000		1,177
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2017		10,000		10,730
Other securities				206,428
				313,082

Pennsylvania 4.51%
Turnpike Commission, Turnpike Rev. Bonds, Series 2014-B-1, 1.00% 2021¹		8,775		8,736
Turnpike Commission, Turnpike Rev. Bonds, Series 2015-A-2, 0.82% 2045 (put 2018)¹		8,500		8,486
Other securities				126,232
				143,454

South Carolina 0.84%
Transportation Infrastructure Bank, Rev. Ref. Bonds, Series 2005-A, AMBAC insured, 5.25% 2018		8,000		9,044
Other securities				17,555
				26,599

Texas 8.58%
G.O. Bonds, College Student Loan Bonds, Series 2011-A, AMT, 5.00% 2019		1,700		1,946
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2019		1,000		1,122
Harris County, Toll Road Rev. Bonds, Series 2012-B, 0% 2021 (put 2018)¹		13,500		13,501
City of Houston, Airport System Rev. Ref. Bonds, Series 2011-A, AMT, 5.00% 2019		10,000		11,359
North Texas Tollway Auth., Dallas North Tollway System Rev. Ref. Bonds, Series 2005-C, 5.00% 2019		2,000		2,250
North Texas Tollway Auth., System Rev. Ref. Bonds Bonds, Series 2014-A, 5.00% 2022		1,000		1,174
North Texas Tollway Auth., System Rev. Ref. Bonds Bonds, Series 2014-A, 5.00% 2023		2,000		2,363
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.50% 2018		3,000		3,320
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2019		5,000		5,564
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2014-C, 0.69% 2038 (put 2020)¹		3,900		3,842
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		9,850		10,076
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-B, 5.00% 2019		1,250		1,406
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)		5,400		5,465
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2020		3,640		4,038
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2020 (preref. 2018)		360		398
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, 0.40% 2041 (put 2018)¹		6,000		5,985
Other securities				199,313
				273,122

26	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount (000)			Value (000)
Wisconsin 1.33%
Health and Educational Facs. Auth., Rev. Ref. Bonds (Aurora Health Care, Inc.),
Series 2012-A, 5.00% 2021	$	7,765	$	9,036
Other securities				33,223
				42,259

Other states & U.S. territories 20.71%
Other securities				659,904

Total bonds, notes & other debt instruments (cost: $2,886,082,000)				3,001,806

Short-term securities 6.16%
State of California, County of Ventura, Tax and Rev. Anticipation Notes 2.00% 7/1/2016		24,585		24,969
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 1.75% 6/28/2016		25,000		25,338
District of Columbia, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 9/30/2015		21,250		21,301
State of Idaho, Tax Anticipation Notes, Series 2015, 2.00% 6/30/2016		15,000		15,245
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016		5,600		5,643
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016		4,400		4,433
State of New York, Metropolitan Transportation Auth., Transportation Rev. Anticipation Notes, Series 2015-A-4, 0.50% 3/1/2016		10,000		10,015
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, 2.00% 6/30/2016		10,000		10,162
State of Texas, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 8/31/2015		67,000		67,082
Other securities				11,800

Total short-term securities (cost: $195,956,000)				195,988
Total investment securities 100.46% (cost: $3,082,038,000)				3,197,794
Other assets less liabilities (0.46)%				(14,697	)

Net assets 100.00%			$	3,183,097

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $13,055,000, which represented .41% of the net assets of the fund.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2015

Bonds, notes & other debt instruments 90.54%	Principal amount (000)			Value (000)
Alabama 1.07%
Jefferson County, Sewer Rev. Warrants, Series 2013-A, Assured Guaranty Municipal insured, 5.00% 2044	$	19,840	$	21,328
Other securities				90,232
				111,560

Arizona 2.71%
Health Facs. Auth., Rev. Bonds (Banner Health), Series 2007-B, 1.00% 2037¹		22,200		19,704
Other securities				263,671
				283,375

California 11.66%
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		24,000		27,938
Various Purpose G.O. Bonds, 3.00% 2016		30,000		30,830
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		19,850		24,129
Turlock Irrigation Dist., Rev. Ref. Bonds, Series 2011, 5.50% 2041		17,990		20,568
Other securities				1,118,114
				1,221,579

Colorado 2.78%
Health Facs. Auth., Health Facs. Rev. Ref. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042		26,265		27,620
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		23,765		26,867
Other securities				236,899
				291,386

Florida 7.97%
Citizens Property Insurance Corp., High-Risk Account Secured Bonds, Series 2009-A-1, 6.00% 2017		20,000		21,830
Orlando-Orange County Expressway Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2035		27,350		30,565
Other securities				781,920
				834,315

Georgia 3.23%
City of Atlanta, Water and Wastewater Rev. Ref. Bonds, Series 1999-A, FGIC-National insured, 5.50% 2022		20,500		24,705
Dev. Auth. of Burke County, Pollution Control Rev. Bonds (Oglethorpe Power Corp. Vogtle Project), Series 2008-E, 7.00% 2023		19,670		22,258
Municipal Electric Auth., Project One Rev. Ref. Bonds, Series 2008-D, 5.75% 2019		23,000		26,145
Other securities				265,698
				338,806

Hawaii 0.25%
Pacific Health Obligated Group, Special Purpose Rev. Bonds (Dept. of Budget and Fin.), Series 2013-A, 5.50% 2043		17,000		19,440
Other securities				7,216
				26,656

Illinois 8.64%
Fin. Auth., Rev. Bonds (DePaul University), Series 2011-A, 6.125% 2040		16,020		19,138
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		27,500		31,849
Housing Dev. Auth., Multifamily Housing Rev. Notes (Marshall Field Garden Apartment Homes), 1.02% 2050 (put 2025)¹		25,800		25,625
State Toll Highway Auth., Toll Highway Priority Rev. Bonds, Series 2006-A-1, Assured Guaranty Municipal insured, 5.00% 2024 (preref. 2016)		5,000		5,216
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2008-B, 5.50% 2033		18,210		19,928
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2027		1,305		1,489
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2028		1,000		1,133
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2029		3,000		3,367

28	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2030	$	7,100	$	7,933
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2032		1,000		1,108
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2033		2,200		2,435
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2038		34,430		37,871
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2038		2,500		2,762
State Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-B, 5.00% 2039		3,000		3,307
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 4.50% 2027		6,000		6,514
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2025		10,000		11,271
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2028		10,000		11,271
State Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2010-A-1, 5.00% 2031		4,000		4,480
Other securities				708,431
				905,128
Indiana 2.05%
Fin. Auth., Midwestern Disaster Relief Rev. Bonds (Ohio Valley Electric Corp. Project), Series 2012-A, 5.00% 2039		18,415		19,489
Other securities				195,426
				214,915

Kentucky 0.43%
Public Transportation Infrastructure Auth., Toll Rev. Bonds (Downtown Crossing Project), Series 2013-A, 6.00% 2053		18,020		20,495
Other securities				24,628
				45,123

Louisiana 1.99%
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032		24,360		26,841
Other securities				182,041
				208,882

Massachusetts 2.27%
Dev. Fin. Agcy., Rev. Bonds (Boston University Issue), Series 2013-X, 5.00% 2048		17,500		19,336
Other securities				218,255
				237,591

Michigan 3.53%
School Dist. of the City of Detroit (Wayne County), School Building and Site Improvement
Ref. Bonds (Unlimited Tax G.O.), Series 2005-A, Assured Guaranty Municipal insured, 5.25% 2032		20,000		23,082
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		43,205		35,683
Other securities				311,480
				370,245

Nevada 1.82%
Clark County, Airport System Rev. Bonds, Series 2010-B, 5.125% 2036		18,000		20,116
Other securities				170,242
				190,358

New Hampshire 0.41%
Business Fin. Auth., Rev. Bonds (Elliot Hospital Obligated Group Issue), Series 2009-A, 6.125% 2039		18,115		20,028
Other securities				23,021
				43,049

New Jersey 2.28%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041		63,850		48,188
Other securities				190,087
				238,275

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York 6.35%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049	$	21,000	$	23,725
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2003-B, FGIC-National insured, 5.25% 2021		5,000		5,979
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2005-C, 5.00% 2016		1,000		1,058
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018		5,335		5,708
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2011-D, 5.00% 2036		6,000		6,714
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-B, 5.00% 2044		13,000		14,403
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2040		8,000		8,924
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2045		20,000		22,170
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 0.60% 2039 (put 2020)¹		9,750		9,618
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.00% 2035		5,000		5,685
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-G-1G, 0.775% 2026 (put 2015)¹		5,000		5,003
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2011-C, 5.00% 2023		5,000		5,820
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2024		8,000		9,557
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2029		7,000		8,097
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2032		3,105		3,527
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-F, 5.00% 2030		10,000		11,522
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2014-A-2, 5.00% 2028		3,000		3,465
Seneca Nation of Indians, Rev. Bonds, Series A, 5.00% 2023²		18,900		19,548
Other securities				494,548
				665,071

Ohio 3.71%
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		30,990		25,656
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		30,880		24,843
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		51,125		44,407
Other securities				293,231
				388,137

South Carolina 1.54%
Building Equity Sooner for Tomorrow (BEST), Installment Purchase Rev. Ref. Bonds (School Dist. of Greenville County, South Carolina Project), Series 2006, 5.00% 2023		19,845		20,992
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2008-A, 5.50% 2038		18,410		20,644
Other securities				120,069
				161,705

Texas 9.30%
Bexar County Hospital Dist., Combination Tax and Rev. Certificates of Obligation, Series 2008, 5.00% 2032		20,500		22,208
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2028		1,500		1,670
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2011-A, 5.00% 2021		1,400		1,668
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2013-B, 5.00% 2026		1,600		1,902

30	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)			Value (000)
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, Series 2013-B, 5.00% 2053	$	32,800	$	35,609
North Texas Tollway Auth., System Rev. Ref. Bonds Bonds, Series 2014-A, 5.00% 2022		1,000		1,174
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.50% 2018		1,000		1,107
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 5.625% 2033		15,100		16,456
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021		465		515
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2021 (preref. 2018)		3,295		3,698
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023		1,545		1,712
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2023 (preref. 2018)		11,025		12,373
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025		615		687
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2008-A, 6.00% 2025 (preref. 2018)		4,385		4,921
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2012-B, 5.25% 2052		8,435		9,231
North Texas Tollway Auth., System Rev. Ref. Bonds, Current Interest Bonds, Series 2014-C, 0.69% 2038 (put 2020)¹		7,000		6,897
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-E-3, 5.75% 2038 (put 2016)		2,150		2,199
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2033		11,000		12,280
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2008-F, 5.75% 2038		8,500		9,489
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.00% 2028		16,000		18,349
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.10% 2028		5,000		5,751
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2009-A, 6.25% 2039		5,000		5,702
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2034		1,500		1,759
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2010, 6.00% 2038		5,000		5,832
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-A, 0.82% 2050 (put 2019)¹		3,600		3,574
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-B, 5.00% 2038		8,000		8,624
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)		8,600		8,704
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2032		10,500		11,612
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2034		4,500		4,946
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2035		4,000		4,384
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2015-A, 5.00% 2038		1,500		1,633
Public Fin. Auth., G.O. Bonds, Series 2007, 5.00% 2024		1,525		1,666
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017 (escrowed to maturity)		200		215
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2021 (preref. 2018)		1,125		1,245
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2028 (preref. 2018)		625		692
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2017		2,050		2,202
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2021		11,420		12,656
Transportation Commission, G.O. Mobility Fund Bonds, Series 2008, 5.00% 2028		6,375		7,031
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-A, 5.00% 2044		15,000		17,053
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, 0.40% 2041 (put 2018)¹		1,500		1,496
Other securities				703,715
				974,637

Washington 3.03%
Health Care Facs. Auth., Rev. Ref. Bonds (Virginia Mason Medical Center), Series 2007-A, 6.125% 2037		22,000		23,795
Other securities				293,833
				317,628

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount			Value
Bonds, notes & other debt instruments (continued)		(000)		(000)
Wisconsin 1.78%
General Fund Annual Appropriation Rev. Ref. Bonds, Series 2009-A, 6.00% 2036	$	52,960	$	61,443
Other securities				125,471
				186,914

Other states & U.S. territories 11.74%
Other securities				1,228,645

Total bonds, notes & other debt instruments (cost: $8,954,393,000)				9,483,980

Short-term securities 9.44%
State of Alabama, Industrial Dev. Auth. of Mobile County, Alabama, Pollution Control Rev. Ref. Bonds (ExxonMobil Project), Series 2002, 0.01% 2032¹		1,650		1,650
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-B, 0.01% 2033¹		1,900		1,900
State of Alaska, City of Valdez, Marine Terminal Rev. Ref. Bonds (Exxon Pipeline Co. Project), Series 1993-C, 0.01% 2033¹		1,400		1,400
State of California, Fin. Auth., Recovery Zone Fac. Bonds (Chevron U.S.A. Inc. Project), Series 2010-A, 0.01% 2035¹		3,300		3,300
State of California, County of Los Angeles,Tax and Rev. Anticipation Notes, 5.00% 2016		25,000		26,073
State of California, County of Ventura, Tax and Rev. Anticipation Notes 2.00% 7/1/2016		20,000		20,312
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 1.50% 6/28/2016		10,000		10,112
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 1.75% 6/28/2016		60,000		60,811
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 2.00% 6/28/2016		10,000		10,155
District of Columbia, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 9/30/2015		47,600		47,714
State of Idaho, Tax Anticipation Notes, Series 2015, 2.00% 6/30/2016		42,250		42,940
State of Louisiana, Industrial Dev. Board of the Parish of East Baton Rouge, Inc., Gulf Opportunity Zone Rev. Bonds (ExxonMobil Project), Series 2010-B, 0.01% 2040¹		3,500		3,500
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobile Project), Series 1989, 0.01% 2019¹		660		660
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobile Project), Series 1993, 0.01% 2022¹		1,450		1,450
State of Louisiana, Parish of East Baton Rouge, Pollution Control Rev. Ref. Bonds (ExxonMobile Project), Series 2010-A, 0.01% 2035¹		6,900		6,900
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016		11,200		11,286
State of Maryland, Baltimore County, G.O. Bonds, 1.25% 4/1/2016		8,800		8,867
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 0.01% 2030¹		6,560		6,560
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-E, 0.01% 2030¹		4,700		4,700
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-G, 0.01% 2035¹		13,210		13,210
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-I, 0.01% 2035¹		14,900		14,900
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-A, 0.01% 2035¹		5,200		5,200
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-L, 0.01% 2035¹		15,150		15,150
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2014-B, 0.01% 2035¹		1,980		1,980
State of New York, Metropolitan Transportation Auth., Transportation Rev. Anticipation Notes, Series 2015-A-4, 0.50% 3/1/2016		50,000		50,074

32	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)			Value (000)
State of Texas, Lower Neches Valley Auth., Industrial Dev. Corp. Rev. Bonds (ExxonMobil Project), Series 2011, 0.01% 2038¹	$	6,955	$	6,955
State of Texas, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 8/31/2015		265,400		265,724
Other securities				345,811

Total short-term securities (cost: $989,211,000)				989,294
Total investment securities 99.98% (cost: $9,943,604,000)				10,473,274
Other assets less liabilities 0.02%				1,817

Net assets 100.00%			$	10,475,091

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $182,511,000, which represented 1.74% of the net assets of the fund.

Key to abbreviations

Agcy. = Agency

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Summary investment portfolio July 31, 2015

Bonds, notes & other debt instruments 94.43%	Principal amount (000)		Value (000)
Arizona 2.21%
Industrial Dev. Auth. of the County of Pima, Water and Wastewater Rev. Bonds (Global Water Resources, LLC Project), Series 2007, AMT, 6.55% 2037	$	16,800	$	17,097
Industrial Dev. Auth. of the County of Pima, Water and Wastewater Rev. Bonds (Global Water Resources, LLC Project), Series 2008, AMT, 7.50% 2038		10,000		10,488
Other securities				51,983
				79,568

California 12.19%
LakeElsinore, Public Fncg. Auth. Rev. Ref. Bonds, 5.00% 2035		9,625		10,337
Morongo Band of Mission Indians, Enterprise Rev. Ref. Bonds, Series 2008-B, 6.50% 2028		9,750		10,870
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		13,000		15,802
Other securities				402,021
				439,030

Colorado 4.60%
City and County of Denver, Dept. of Aviation, Special Facs. Airport Rev. Ref. Bonds (United Air Lines Project), Series 2007-A, AMT, 5.25% 2032		18,000		18,640
City and County of Denver, Dept. of Aviation, Special Facs. Airport Rev. Ref. Bonds (United Air Lines Project), Series 2007-A, AMT, 5.75% 2032		2,905		3,033
Health Facs. Auth., Health Care Facs. Rev. Bonds (American Baptist Homes of the Midwest Obligated Group), Series 2013, 8.00% 2043		11,100		13,096
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2035		17,060		17,326
Regional Transportation Dist., Private Activity Bonds (Denver Transit Partners Eagle P3 Project), Series 2010, 6.00% 2041		14,800		16,732
Other securities				97,001
				165,828

Florida 6.89%
Dev. Fin. Corp., Healthcare Facs. Rev. Bonds (UF Health - Jacksonville Project), Series 2013-A, 6.00% 2033		11,880		13,292
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Ref. Bonds (Shell Point/Alliance Obligated Group, Shell Point Village/Alliance Community Project), Series 2007, 5.00% 2029		13,425		13,991
Lee County, Airport Rev. Ref. Bonds, Series 2011-A, AMT, 5.375% 2032		9,935		11,021
Other securities				209,992
				248,296

Illinois 6.90%
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2030		5,000		5,417
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2031		9,500		10,243
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2032		5,000		5,380
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2033		3,000		3,224
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2041		13,000		13,693
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2010-A, 6.00% 2039		8,935		10,312
Fin. Auth., Rev. Ref. Bonds (Provena Health), Series 2009-A, 7.75% 2034		9,800		11,878
Fin. Auth., Student Housing Rev. Ref. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		11,500		13,318
Fin. Auth., Student Hosuing Rev. Bonds (CHF - Cook, LLC - Northeastern Illinois University Project), Series 2015-A, 5.00% 2047		11,000		11,199
Southwestern Illinois Dev. Auth., Health Fac. Rev. Bonds (Memorial Group, Inc.), Series 2013, 7.625% 2048		11,020		13,689
Other securities				150,193
				248,546

34	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
Iowa 1.16%
Fin. Auth., Midwestern Disaster Area Rev. Ref. Bonds (Iowa Fertilizer Co. Project), Series 2013, 5.25% 2025	$	17,750	$	19,352
Other securities				22,338
				41,690

Louisiana 1.69%
Local Government Environmental Facs. and Community Dev. Auth., Rev. Bonds (Westlake Chemical Corp. Projects), Series 2007, 6.75% 2032		9,500		10,468
Other securities				50,347
				60,815

Massachusetts 1.62%
Dev. Fin. Agcy., Rev. Bonds (Linden Ponds, Inc. Fac.), Series 2011-A-1, 6.25% 2046		11,732		11,028
Other securities				47,299
				58,327

Michigan 4.97%
Tobacco Settlement Fin. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A, 6.00% 2048		36,955		30,521
Wayne County Airport Auth., Airport Rev. Bonds (Detroit Metropolitan Wayne County Airport), Series 2005, AMT, National insured, 5.00% 2034		11,000		11,133
Wayne County Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2028		12,000		13,141
Other securities				124,234
				179,029

New Jersey 4.67%
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.125% 2023		4,500		4,915
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.25% 2029		17,000		18,512
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2000-B, AMT, 5.625% 2030		1,750		1,956
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2003, AMT, 5.50% 2033		3,500		3,865
Econ. Dev. Auth., Special Fac. Rev. Ref. Bonds (Continental Airlines, Inc. Project), Series 2012, AMT, 5.75% 2027		4,500		4,873
South Jersey Transportation Auth.,Transportation System Rev. Bonds, Series 2014-A, 5.00% 2039		12,650		13,398
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-1-A, 5.00% 2041		66,005		49,815
Other securities				70,681
				168,015

New York 4.44%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		13,360		15,093
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), AMT, 2.00% 2028		6,300		6,310
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.625% 2025		15,200		16,239
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.75% 2031		3,130		3,336
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 8.00% 2028		2,000		2,142
Other securities				116,756
				159,876

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Ohio 5.23%
Air Quality Dev. Auth., Air Quality Dev. Rev. Bonds (FirstEnergy Generation Corp. Project), Series 2009-A, 5.70% 2020	$	1,500	$	1,657
Air Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2009-C, 5.625% 2018		8,580		9,189
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2030		11,000		9,107
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 5.875% 2047		41,250		33,186
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-backed Bonds, Current Interest Bonds, Series 2007-A-2, 6.50% 2047		22,000		19,109
County of Gallia, Hospital Facs. Rev. Ref. and Improvement Bonds (Holzer Health System Obligated Group Project), Series 2012-A, 8.00% 2042		10,870		12,269
Water Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Corp. Project), Series 2005-B, 4.00% 2034 (put 2021)		8,500		8,622
Water Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Corp. Project), Series 2014-B, 3.625% 2033 (put 2020)		2,250		2,280
Water Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Corp. Project), Series 2014-C, AMT, 3.95% 2032 (put 2020)		3,000		3,027
Water Quality Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Corp. Project), Series 2014-B, 4.00% 2033 (put 2019)		2,000		2,072
Other securities				87,870
				188,388

Oklahoma 1.04%
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2001-B, AMT, 5.50% 2035		15,875		16,976
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2013-B, AMT, 5.50% 2035		120		128
Trustees of the Tulsa Municipal Airport Trust, Series 2015, AMT, 5.00% 2035 (put 2025)		5,000		5,428
Other securities				14,864
				37,396

Pennsylvania 5.01%
Beaver County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Project), Series 2005-A, 4.00% 2035 (put 2021)		4,950		5,023
Econ. Dev. Fncg. Auth., Private Activity Rev. Bonds (The Pennsylvania Rapid Bridge Replacement Project), Series 2015, AMT, 5.00% 2034		16,200		17,384
Higher Educational Facs. Auth., Rev. Bonds (Edinboro University Foundation Student Housing Project), Series 2008, 5.875% 2038		10,100		10,580
Hospitals and Higher Education Facs. Auth. of Philadelphia, Hospital Rev. Bonds (Temple University Health System Obligated Group), Series 2012-A, 5.625% 2042		13,545		14,228
Susquehanna Area Regional Airport Auth., Airport System Rev. Bonds, Series 2012-A, AMT, 5.00% 2027		10,210		11,100
Other securities				122,069
				180,384

Puerto Rico 3.36%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042		24,275		16,708
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036		15,110		14,594
Other securities				89,795
				121,097

Texas 7.76%
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs. Rev. Ref. Bonds (Dow Chemical Co. Project), Series 2002-A-4, AMT, 5.95% 2033		13,545		15,144
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.50% 2030		9,300		10,840
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.625% 2038		3,000		3,473
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-B-1, AMT, 5.00% 2030		3,000		3,131
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-C, AMT, 5.00% 2020		7,000		7,414

36	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 4.75% 2024	$	5,500	$	5,949
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 5.00% 2029		5,850		6,133
Sanger Texas Industrial Dev. Corp., Industrial Dev. Rev. Ref. Bonds (Texas Pellets Project), Series 2012-B, AMT, 8.00% 2038		14,110		15,195
Other securities				212,325
				279,604

Washington 1.49%
Health Care Facs. Auth., Rev. Ref. Bonds (Virginia Mason Medical Center), Series 2007-A, 6.125% 2037		9,500		10,275
Housing Fin. Commission, Nonprofit Housing Rev. Ref. Bonds (Rockwood Retirement Project), Series 2014-A, 7.50% 2049¹		9,090		10,102
Other securities				33,368
				53,745

West Virginia 0.15%
County Commission of Harrison County, Solid Waste Disposal Rev. Ref. Bonds (Allegheny Energy Supply Co., LLC Harrison Station Project), Series 2007-D, AMT, 5.50% 2037		5,000		5,246

Other states & U.S. territories 19.05%
Other securities				685,987

Total bonds, notes & other debt instruments (cost: $3,248,093,000)				3,400,867

Short-term securities 5.48%
State of California, County of Ventura, Tax and Rev. Anticipation Notes 2.00% 7/1/2016	15,000		15,234
State of Colorado, General Fund Tax and Rev. Anticipation Notes, Series 2015-A, 1.75% 6/28/2016	25,000		25,338
District of Columbia, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 9/30/2015	10,200		10,224
State of Ohio, Ohio Water Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Nuclear Generation Corp. Project), Series 2008-B, 0.01% 2018²	500		500
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, 2.00% 6/30/2016	10,000		10,162
State of Texas, Tax and Rev. Anticipation Notes, Series 2014, 1.50% 8/31/2015	84,000		84,102
Other securities			51,854

Total short-term securities (cost: $197,387,000)			197,414
Total investment securities 99.91% (cost: $3,445,480,000)			3,598,281
Other assets less liabilities 0.09%			3,360

Net assets 100.00%		$	3,601,641

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $232,424,000, which represented 6.45% of the net assets of the fund.

²	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

38	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Summary investment portfolio July 31, 2015

Bonds, notes & other debt instruments 96.32%	Principal amount (000)		Value (000)
California 93.17%
State issuers 37.65%
Educational Facs. Auth., Rev. Ref. Bonds (California Lutheran University), Series 2008, 5.75% 2038	$	6,000	$	6,664
Educational Facs. Auth., Rev. Ref. Bonds (Chapman University), Series 2011, 5.00% 2031		8,615		9,563
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Assured Guaranty Municipal insured, 0% 2035		2,000		854
G.O. Bonds, Series 2012-A, 0.47% 2033 (put 2018)¹		6,500		6,459
G.O. Bonds, Series 2013-E, 0.949% 2029¹		1,500		1,526
Various Purpose G.O. Bonds, 3.00% 2016		20,000		20,553
Various Purpose G.O. Bonds, 5.00% 2033		6,000		6,914
Various Purpose G.O. Bonds, 5.25% 2028		5,000		5,828
Various Purpose G.O. Bonds, 5.25% 2028		2,000		2,333
Various Purpose G.O. Bonds, 6.00% 2038		7,000		8,163
Various Purpose G.O. Bonds, 6.00% 2039		2,000		2,381
Various Purpose G.O. Bonds, 6.50% 2033		5,000		5,936
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2007-A-1, 5.125% 2047		5,000		3,910
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2032		3,250		3,708
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2033		4,000		4,524
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2015-A, 5.00% 2045		6,000		6,617
Golden State Tobacco Securitization Corp., Tobacco Settlement Asset-backed Rev. Ref. Bonds, Series 2007-A-1, 5.75% 2047		23,225		19,877
Health Facs. Fncg. Auth., Rev. Bonds (Rady Children’s Hospital - San Diego), Series 2011, 5.25% 2041		5,000		5,546
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Cedars-Sinai Medical Center), Series 2005, 5.00% 2027		12,750		12,913
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Hospital and Clinics), Series 2010-B, 5.25% 2031		8,000		9,109
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.00% 2033		11,500		12,672
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2024		2,000		2,249
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2008-A, 5.25% 2025		2,000		2,245
Municipal Fin. Auth., Certs. of Part. (Community Hospitals of Central California Obligated Group), 5.25% 2037		5,500		5,693
Municipal Fin. Auth., Jurupa Lease Rev. Ref. Bonds (Wineville Unified School District), Series 2015-A, BAM insured, 5.00% 2042		4,500		4,899
Municipal Fin. Auth., Rev. Bonds (Biola University), Series 2013, 5.00% 2042		1,000		1,065
Municipal Fin. Auth., Rev. Ref. Bonds (Azusa Pacific University Project), Series 2011-B, 8.00% 2041²		8,550		11,482
Municipal Fin. Auth., Rev. Ref. Bonds (Biola University), Series 2008-A, 5.00% 2018		1,000		1,097
Municipal Fin. Auth., Rev. Ref. Bonds (Biola University), Series 2008-A, 5.625% 2023		1,500		1,638
Municipal Fin. Auth., Rev. Ref. Bonds (Biola University), Series 2008-A, 5.80% 2028		4,700		5,138
Municipal Fin. Auth., Rev. Ref. Bonds (Biola University), Series 2008-A, 5.875% 2034		3,000		3,266
Northern California Power Agcy., Geothermal Project Number 3 Rev. Bonds, Series 2009-A, 5.50% 2022		1,000		1,159
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2010-A, 5.00% 2023		3,680		4,084
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2029		1,570		1,784
Northern California Power Agcy., Hydroelectric Project Number One Rev. Ref. Bonds, Series 2012-A, 5.00% 2030		1,000		1,133
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2020		2,010		2,352
Northern California Power Agcy., Lodi Energy Center Rev. Bonds, Issue One, Series 2010-A, 5.00% 2025		6,000		6,720
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 2045²		7,000		7,346
Public Works Board, Lease Rev. Bonds (Regents of the University of California, Various University of California Projects), Series 2009-E, 5.00% 2024 (preref. 2019)		2,500		2,862
Public Works Board, Lease Rev. Bonds (Regents of the University of California, Various University of California Projects), Series 2009-E, 5.00% 2034 (preref. 2019)		1,500		1,717

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
California (continued)
State issuers (continued)
Southern California Public Power Auth., Transmission Project Rev. Ref. Bonds (Southern Transmission Project), Series 2008-A, 5.00% 2022	$	4,960	$	5,550
Statewide Communities Dev. Auth., Rev. Bonds (Buck Institute for Research on Aging), Series 2014, Assured Guaranty Municipal insured, 5.00% 2049		5,250		5,800
Statewide Communities Dev. Auth., Rev. Bonds (Front Porch Communities and Services Project), Series 2007-A, 5.125% 2037²		9,500		9,764
Statewide Communities Dev. Auth., Rev. Bonds (Inland Regional Center Project), Series 2007, 5.375% 2037		6,500		6,795
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2012-A, 5.00% 2042		6,500		7,117
Statewide Communities Dev. Auth., Rev. Ref. Bonds (American Baptist Homes of the West), Series 2010, 6.25% 2039		5,300		5,842
Statewide Communities Dev. Auth., Rev. Ref. Bonds (Catholic Healthcare West), Series 2008-D, 5.50% 2031		6,090		6,540
Statewide Communities Dev. Auth., Senior Living Rev. Ref. Bonds (Southern California Presbyterian Homes), Series 2006-A, 4.875% 2036²		6,500		6,502
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase II), Series 2008, 5.50% 2026		3,500		3,822
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC- UCI East Campus Apartments, Phase II), Series 2008, 6.00% 2040		4,750		5,191
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase I), Series 2011, 5.375% 2038		1,260		1,392
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2017		2,565		2,649
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2020		1,000		1,032
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2026		2,980		3,068
Statewide Communities Dev. Auth., Student Housing Rev. Ref. Bonds (CHF-Irvine, LLC - UCI East Campus Apartments, Phase II), Series 2006, 5.00% 2038		2,000		2,054
Regents of the University of California, Limited Project Rev. Bonds, Series 2007-D, FGIC-National insured, 5.00% 2037		5,000		5,238
Regents of the University of California, Limited Project Rev. Bonds, Series 2015-A-O, 3.00% 2016		2,200		2,250
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 0.826% 2037¹		5,000		4,554
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, 0.896% 2043¹		8,000		6,961
Other securities				309,555
				625,655

City & county issuers 55.52%
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2026		6,375		7,426
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Insured Rev. Ref. Bonds (Casa de las Campanas, Inc.), Series 2010, 6.00% 2037		6,000		7,018
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Insured Senior Living Rev. Ref. Bonds (Odd Fellows Home of California), Series 2012-A, 5.00% 2032		5,000		5,580
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2006-C-1, 0.92% 2045 (put 2023)¹		2,000		1,964
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.00% 2039 (preref. 2018)		2,000		2,222
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2008-F-1, 5.125% 2047 (preref. 2018)		6,000		6,686
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.625% 2044 (preref. 2019)		1,670		1,951
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.125% 2039 (preref. 2019)		2,000		2,300
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-B, 1.50% 2047		3,950		3,990
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-F1, 5.00% 2054		5,000		5,443

40	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

	Principal amount (000)		Value (000)
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-G, 0.62% 2034 (put 2020)¹	$	2,750	$	2,723
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-H, 0.72% 2034 (put 2021)¹		4,000		3,958
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		7,500		8,731
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-B-1, 5.00% 2053 (put 2018)		1,000		1,064
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2014-A, 6.00% 2049		5,800		6,798
City of Los Angeles Harbor Dept., Rev. Bonds, Series 2009-A, 5.00% 2027		2,000		2,276
City of Los Angeles Harbor Dept., Rev. Bonds, Series 2009-B, 5.25% 2039		1,000		1,134
City of Los Angeles Harbor Dept., Rev. Bonds, Series 2014-B, AMT, 5.00% 2032		3,000		3,392
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Issue 1988, 7.60% 2018 (escrowed to maturity)		665		738
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Series 2006-A, AMT, National insured, 5.00% 2020		6,000		6,391
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Series 2011-A, AMT, 5.00% 2021		2,085		2,441
City of Los Angeles Harbor Dept., Rev. Ref. Bonds, Series 2011-B, 5.00% 2023		1,000		1,201
Dept. of Airports of the City of Los Angeles, Los Angeles International Airport, Rev. Ref. Bonds, Series 2008-A, AMT, 5.50% 2022		5,000		5,576
Roseville Natural Gas Fncg. Auth., Gas Rev. Bonds, Series 2007, 5.00% 2022		4,920		5,516
Sacramento County Sanitation Districts Fncg. Auth., Rev. Ref. Bonds (Sacramento Regional County Sanitation Dist.), Series 2007-B, FGIC-National insured, 0.688% 2035¹		13,500		11,911
Sacramento Municipal Utility Dist. Fncg. Auth., Cosumnes Project Rev. Bonds, Series 2006, National insured, 5.125% 2029		10,000		10,446
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		10,825		13,158
Public Facs. Fncg. Auth. of the City of San Diego, Water Rev. Ref. Bonds, Series 2012-A, 5.00% 2028		5,000		5,785
San Diego Unified School Dist., G.O. Bonds, Series 2015-R-4, 5.00% 2027		5,000		6,024
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Bonds, Series 2009-E, 6.00% 2039		3,000		3,494
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Issue 34-E, AMT, 5.75% 2019		3,500		3,946
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2009-A, 4.90% 2029		5,000		5,674
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2010-F, 5.00% 2040		3,000		3,272
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2011-F, AMT, 5.00% 2028		2,630		2,922
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2028		1,000		1,118
Airport Commission, City and County of San Francisco, San Francisco International Airport, Second Series Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2030		1,000		1,106
San Francisco Municipal Transportation Agcy., Rev. Bonds, Series 2012-B, 5.00% 2042		5,000		5,546
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.50% 2030		8,000		8,999
Tobacco Securitization Auth. of Southern California, Tobacco Settlement Asset-backed Rev. Ref. Bonds (San Diego County Tobacco Asset Securitization Corp.), Series 2006-A, 5.125% 2046		7,800		6,396
City of Whittier, Health Fac. Rev. Bonds (PIH Health), Series 2014, 5.00% 2044		9,000		9,751
Other securities				726,686
				922,753

Guam 0.68%
Other securities				11,270

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Puerto Rico 1.53%
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036	$	6,590	$	6,365
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		7,150		7,022
Other securities				12,061
				25,448

Virgin Islands 0.94%
Other securities				15,564

Total bonds, notes & other debt instruments (cost: $1,512,038,000)				1,600,690

Short-term securities 3.41%
G.O. Bonds, Series 2009-A-10, 0.01% 2034¹	2,900		2,900
County of Los Angeles,Tax and Rev. Anticipation Notes, 5.00% 2016	25,000		26,073
County of Ventura, Tax and Rev. Anticipation Notes 2.00% 7/1/2016	15,000		15,234
Other securities			12,489

Total short-term securities (cost: $56,696,000)			56,696
Total investment securities 99.73% (cost: $1,568,734,000)			1,657,386
Other assets less liabilities 0.27%			4,474

Net assets 100.00%		$	1,661,860

42	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $51,085,000, which represented 3.07% of the net assets of the fund.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Investment portfolio July 31, 2015

Bonds, notes & other debt instruments 90.31%	Principal amount (000)		Value (000)
New York 83.07%
State issuers 47.09%
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2039	$	1,625	$	1,780
Dobbs Ferry Local Dev. Corp., Rev. Bonds, Series 2014, 5.00% 2044		2,235		2,424
Dormitory Auth., The New School Rev. Bonds, Series 2015-A, 5.00% 2032		1,000		1,138
Dormitory Auth., The New School Rev. Bonds, Series 2015-A, 5.00% 2050		500		547
Dormitory Auth., Consolidated Service Contract Rev. Ref. Bonds, Series 2010, 5.00% 2020		500		583
Dormitory Auth., Culinary Institute of America Rev. Bonds, Series 2013, 5.50% 2033		500		554
Dormitory Auth., Fordham University Rev. Bonds, Series 2011-A, 5.50% 2036		1,000		1,181
Dormitory Auth., Lease Rev. Bonds (State University Dormitory Facs. Issue), Series 2010-A, 5.00% 2035		1,000		1,132
Dormitory Auth., Miriam Osborn Memorial Home Association Rev. Ref. Bonds, Series 2012, 5.00% 2042		970		1,015
Dormitory Auth., Mount Sinai School of Medicine of New York University, Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		1,000		1,141
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021		500		577
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040		500		569
Dormitory Auth., North Shore-Long Island Jewish Obligated Group, Rev. Ref. Bonds, Series 2011-A, 5.00% 2032		1,500		1,641
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2022		200		234
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2034		1,000		1,110
Dormitory Auth., NYU Hospitals Center Rev. Bonds, 5.00% 2036		350		386
Dormitory Auth., NYU Hospitals Center Rev. Bonds, Series 2011-A, 6.00% 2040		1,000		1,145
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2008, 6.25% 2037		1,000		1,093
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2015, 5.00% 2032¹		600		628
Dormitory Auth., Rochester General Hospital Insured Rev. Bonds, Series 2005, RADIAN insured, 5.00% 2015 (escrowed to maturity)		720		732
Dormitory Auth., School Districts Rev. Bond Fncg. Program Rev. Ref. Bonds, Series 2011-A, 5.00% 2024		500		580
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041		1,420		1,633
Dormitory Auth., State Personal Income Tax Rev. Bonds (Education), Series 2014-E, 5.00% 2032		750		868
Dormitory Auth., State Sales Tax Rev. Bonds, Series 2013-A, 3.00% 2016		4,250		4,325
Dormitory Auth., Touro College and University System Obligated Group Rev. Bonds, Series 2014-A, 5.50% 2039		500		537
Dormitory Auth.of the State of New York, School Districts Rev. Bond Fncg. Program Rev. Bonds, Series 2013-E, Assured Guaranty Municipal insured, 5.00% 2022		1,000		1,190
Environmental Facs. Corp., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2013-A, 2.75% 2017		1,000		1,026
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.25% 2047		1,000		1,095
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2012 Series A, 5.75% 2047		1,000		1,140
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 1, 5.00% 2044¹		750		757
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.15% 2034¹		750		779
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.375% 2040¹		350		369
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 3, 7.25% 2044¹		375		445
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031		1,500		1,706
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		1,500		1,695
Liberty Dev. Corp., Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035		1,000		1,170
Metropolitan Transportation Auth., Dedicated Tax Fund Bonds, Series 2004-C, AMBAC insured, 5.50% 2017		1,000		1,107
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, 1.02% 2020²		2,000		2,008
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-A-2A, 0.40% 2026 (put 2017)²		500		497

44	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount		Value
	(000)		(000)
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-A2, 0.29% 2041 (put 2016)²	$	905	$	905
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2031		1,000		1,146
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-B, 5.00% 2044		500		554
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-D-1, 5.00% 2039		250		281
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, 0.60% 2039 (put 2020)²		500		493
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.00% 2035		1,750		1,990
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-G-1H, 0.975% 2026 (put 2016)²		715		719
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043		490		507
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, 3.50% 2034		750		788
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 194, AMT, 3.50% 2035		750		789
Mortgage Agcy., Mortgage Rev. Bonds, Series 46, 5.00% 2029		215		227
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 45, 4.50% 2029		470		483
Mortgage Agcy., Mortgage Rev. Ref. Bonds, Series 48, 2.625% 2041		720		737
Port Auth., Consolidated Bonds, Series 147, AMT, FGIC-National insured, 5.00% 2021		500		533
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031		1,000		1,146
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025		1,000		1,134
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034		1,000		1,098
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2044		1,250		1,365
Port Auth., Special Project Bonds (JFK International Air Terminal LLC Project), Series 8, 5.00% 2020		1,000		1,139
Power Auth. of the State of New York, Rev. Ref. Bonds, Series 2011-A, 5.00% 2038		1,500		1,671
Southold Local Dev. Corporation, Rev. Bonds (Peconic Landing at Southold, Inc. Project), Series 2015, 5.00% 2045		1,500		1,571
State Energy Research and Dev. Auth., Pollution Control Rev. Ref. Bonds (New York State Electric & Gas Corp. Project), Series 2005-B, 2.375% 2026 (put 2020)		300		299
Thruway Auth., General Rev. Bonds, Series 2014-J, 5.00% 2027		1,000		1,168
Thruway Auth., General Rev. Bonds, Series 2014-K, 5.00% 2028		500		585
Thruway Auth., General Rev. Junior Indebtedness Obligations Series 2013-A, 5.00% 2019		250		284
Thruway Auth., Local Highway and Bridge Service Contract Rev. Ref. Bonds, Series 2009, 5.00% 2020		1,000		1,158
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2020		400		416
Tobacco Settlement Fncg. Corp., Asset-Backed Rev. Bonds, Series 2013-B, 5.00% 2021		200		208
Tobacco Settlement Fncg. Corp., Rev. Ref. Bonds (State Contingency Contract Secured), Series 2011-B, 5.00% 2018		1,000		1,112
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2010-A-1, 5.00% 2019		1,000		1,163
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Ref. Bonds, Series 2000-ABCD-5, Assured Guaranty Municipal insured, 0.46% 2019²		500		494
Urban Dev. Corp., Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2027		1,500		1,771
Urban Dev. Corp., Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2034		500		569
Urban Dev. Corp., Service Contract Rev. Ref. Bonds, Series 2010-A-2, 5.00% 2020		1,000		1,156
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1, 5.25% 2038		1,000		1,114
				73,310

City & county issuers 35.98%
City of Albany Capital Resource Corp., Rev. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2011, 6.25% 2038		1,000		1,249
City of Albany Industrial Dev. Agcy., Civic Fac. Rev. Ref. Bonds (St. Peter’s Hospital of the City of Albany Project), Series 2008-A, 5.25% 2027		500		552
Buffalo and Erie County Industrial Land Dev. Corp., Rev. Bonds (Buffalo State College Foundation Housing Corp. Project), Series 2011-A, 5.375% 2041		1,400		1,546
Buffalo and Erie County, Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Projct), Series 2015, 5.00% 2040		1,050		1,137
Buffalo and Erie County, Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Projct), Series 2015, 5.25% 2035		500		557

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
City & county issuers (continued)
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 5.50% 2043	$	1,000	$	1,083
Build NYC Resource Corp., Solid Waste Disposal Rev. Bonds (Pratt Paper (NY), Inc. Project), Series 2014, AMT, 4.50% 2025¹		450		479
Build NYC Resource Corp., Solid Waste Disposal Rev. Bonds (Pratt Paper (NY), Inc. Project), Series 2014, AMT, 5.00% 2035¹		250		266
County of Chautauqua Industrial Dev. Agcy., Exempt Fac. Rev. Bonds (NRG Dunkirk Power Project), Series 2009, 5.875% 2042		1,000		1,109
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2030		500		573
Dutchess County Local Dev. Corp., Rev. Ref. Bonds (Health Quest Systems, Inc. Project), Series 2010, 5.75% 2040		1,000		1,128
Erie County Industrial Dev. Agcy., School Fac. Rev. Bonds (City School Dist. of the City of Buffalo Project), Series 2011-A, 5.25% 2025		500		583
Erie County Industrial Dev. Agcy., School Fac. Rev. Ref. Bonds (City School Dist. of the City of Buffalo Project), Series 2012-A, 5.00% 2021		500		588
Erie County Industrial Dev. Agcy., School Fac. Rev. Ref. Bonds (City School Dist. of the City of Buffalo Project), Series 2013-A, 5.00% 2027		790		926
Essex County Industrial Dev. Agcy., Solid Waste Disposal Rev. Ref. Bonds, Series 2005-A, AMT, 5.20% 2023		750		757
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2027		1,300		1,449
Town of Hempstead Local Dev. Corp., Rev. Bonds (Hofstra University Project), Series 2011, 5.00% 2041		800		866
Town of Hempstead, Local Dev. Corporation Rev. Ref. Bonds (Adelphi University Project), Series 2014, 5.00% 2027		400		461
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038		500		546
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-A, 5.00% 2044		1,240		1,358
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-C, 0.781% 2033 (put 2018)²		1,000		1,004
County of Monroe Industrial Dev. Agcy., School Fac. Rev. Bonds (Rochester Schools Modernization Project), Series 2012-A, 5.00% 2021		1,000		1,174
Nassau County Local Econ. Assistance Corp., Rev. Ref. Bonds (Winthrop-University Hospital Association Project), Series 2012, 5.00% 2037		500		533
City of New Rochelle, Corp. for Local Dev. Rev Bonds, (Iona College Project), Series 2015-A, 5.00% 2045		750		805
City of New York, G.O. Bonds, Fiscal 2008 Series J-4, 0.57% 2025²		1,500		1,490
City of New York, G.O. Bonds, Fiscal 2008 Series L-1, 5.00% 2023		1,000		1,102
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2028		500		588
City of New York, G.O. Bonds, Series 2015-C, 5.00% 2033		1,000		1,150
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (1998 British Airways PLC Project), Series 1998, AMT, 5.25% 2032		375		376
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), AMT, 2.00% 2028		200		200
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2005, AMT, 7.625% 2025		1,500		1,603
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Ref. Bonds, Fiscal 2011 Series EE, 5.375% 2043		1,000		1,170
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Ref. Bonds, Series 2015-HH, 5.00% 2039		500		570
New York City Transitional Fin. Auth., Building Aid Rev. Bonds, Fiscal 2007 Series S-2, Assured Guaranty Municipal insured, 5.00% 2017		570		607
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011 Series C, 5.25% 2025		1,000		1,185
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2015-C, 5.00% 2027		750		898
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010 Series D, 5.00% 2023		1,000		1,166
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2014-A1, 5.00% 2037		500		566
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2021		540		619
New York City, Health and Hospitals Corp., Health System Rev. Ref. Bonds, Series 2010-A, 5.00% 2025		500		558

46	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount		Value
	(000)		(000)
New York City, Housing Dev. Corp. Multi-Family Rev. Bonds (8 Spruce Street), Series 2014-E, 3.50% 2048	$	680	$	690
New York City, Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2014-EE, 5.00% 2045		500		560
Trust for Cultural Resources of the City of New York, Rev. Bonds (Juilliard School), Series 2009-B, 1.35% 2036 (put 2017)		1,500		1,512
Niagara Area Dev. Corp. (New York), Solid Waste Disposal Fac. Rev. Ref. Bonds (Covanta Energy Project), Series 2012-A, AMT, 5.25% 2042¹		375		384
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2027		600		674
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2028		500		558
Niagara Frontier Transportation Auth., Airport Rev. Ref. Bonds (Buffalo Niagara International Airport), Series 2014-A, AMT, 5.00% 2029		300		331
Onondaga Civic Dev. Corp., Rev. Bonds (St. Joseph’s Hospital Health Center Project), Series 2014-A, 5.125% 2031		750		791
Onondaga County Resource Recovery Agcy., Rev. Ref. Bonds, Series 2015-A, AMT, Assured Guaranty Municipal insured, 5.00% 2030		1,750		1,941
County of Rockland G.O. Bonds, Series 2014-A, Assured Guaranty Municipal insured, 5.00% 2024		1,000		1,169
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Catholic Health Services of Long Island Obligated Group Project), Series 2011, 5.00% 2028		1,000		1,093
Suffolk County Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030		1,000		1,091
Suffolk County Industrial Dev. Agcy., Continuing Care Retirement Community Rev. Ref. Bonds (Jefferson’s Ferry Project), Series 2006, 5.00% 2028		1,000		1,022
Suffolk County Industrial Dev. Agcy., Industrial Dev. Rev. Bonds (KeySpan-Port Jefferson Energy Center, LLC Project), Series 2003-A, AMT, 5.25% 2027		1,000		1,004
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2012-B, 5.00% 2032		750		813
Tompkins County, New York, Dev. Corp., Continuing Care Retirement Community Rev. Bonds (Kendal at Ithaca Inc.), Series 2014-A, 5.00% 2044		1,000		1,054
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.00% 2034		1,380		1,256
TSASC, Inc., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2006-1, 5.125% 2042		2,720		2,357
Westchester County Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030		1,000		1,136
Westchester County Local Dev. Corp., Rev. Ref. Bonds (Pace University), Series 2014-A, 5.50% 2042		250		282
City of Yonkers, G.O. Bonds, Series 2011-A, 5.00% 2019		1,000		1,140
City of Yonkers, G.O. Bonds, Series 2015-B, Assured Guaranty Municipal insured, 5.00% 2024		490		589
				56,024

Guam 2.13%
A.B. Won Pat International Airport Auth., General Rev. Bonds, Series 2013-C, AMT, 6.375% 2043		500		585
Government of Guam, Business Privilege Tax Bonds, Series 2011-A, 5.00% 2031		1,200		1,316
Government of Guam, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2011-A, 6.125% 2031		500		588
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2013, 5.00% 2028		500		555
Waterworks Auth., Water and Wastewater System Rev. Bonds, Series 2014-A, 5.00% 2029		250		276
				3,320

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Puerto Rico 4.10%
Aqueduct and Sewer Auth., Rev. Ref. Bonds, Series 2012-A, 5.25% 2042	$	500	$	344
Electric Power Auth., Power Rev. Ref. Bonds, Series 2007-UU, Assured Guaranty Municipal insured, 5.00% 2024		330		327
Highways and Transportation Auth., Highway Rev. Ref. Bonds, Series 2003-AA1, 4.95% 2026		265		264
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-D, Assured Guaranty Municipal insured, 5.00% 2032		1,160		1,104
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036		1,000		966
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (Inter American University of Puerto Rico Project), Series 2012, 5.00% 2021		400		393
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (Inter American University of Puerto Rico Project), Series 2012, 5.00% 2031		750		688
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (University of the Sacred Heart Project), Series 2012, 5.00% 2020		500		421
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Higher Education Rev. and Rev. Ref. Bonds (University of the Sacred Heart Project), Series 2012, 5.00% 2042		500		371
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		1,000		982
University of Puerto Rico, University System Rev. Ref. Bonds, Series 2006-P, 5.00% 2017		570		356
University of Puerto Rico, University System Rev. Ref. Bonds, Series 2006-Q, 5.00% 2020		350		173
				6,389

Virgin Islands 1.01%
Public Fin. Auth., Rev. Bonds (Matching Fund Loan Note - Diageo Project), Series 2009-A, 6.625% 2029		500		561
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Note), Series 2013-B, 5.00% 2024		500		571
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Notes), Series 2012-A, 5.00% 2032		250		270
Public Fin. Auth., Rev. Ref. Bonds (Matching Fund Loan Notes), Series 2014-A, 5.00% 2024		150		171
				1,573

Total bonds, notes & other debt instruments (cost: $134,304,000)				140,616

Short-term securities 9.54%
Dormitory Auth., University of Rochester Rev. Bonds, Series 2003-A, JPMorgan Chase LOC, 0.01% 2031²		2,485		2,485
City of Syracuse, Industrial Dev. Agcy., Civic Fac. Rev. Bonds (Syracuse University Project), Series 2008-A-2, JPMorgan Chase LOC, 0.01% 2037²		300		300
New York City Industrial Dev. Agcy., Civic Fac. Ref. and Improvement Rev. Bonds (2005 American Civil Liberties Union Foundation, Inc. Project), Series 2005, JPMorgan Chase LOC, 0.01% 2035²		1,900		1,900
City of New York, G.O. Bonds, Fiscal 1994 Series E-2, 0.01% 2020²		1,200		1,200
City of New York, G.O. Bonds, Fiscal 2008 Series L, Subseries L-4, 0.01% 2038²		1,000		1,000
New York City, Transitional Fin. Auth., New York City Recovery Bonds, Fiscal Series 2003-1, Subseries 1-C, 0.01% 2022²		3,500		3,500

48	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount		Value
	(000)		(000)
City of Syracuse, New York, Industrial Dev. Agcy., Civic Fac. Rev. Bonds (Syracuse University Project), Series 2008-A-1, 0.01% 2037²	$	765	$	765
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), General Rev. Bonds, Series 2003-B-3, U.S. Bank LOC, 0.01% 2033²		2,000		2,000
Triborough Bridge and Tunnel Auth. (MTA Bridges and Tunnels), Rev. Ref. Bonds, Series 2015-B2, 0.01% 2032²		1,700		1,700

Total short-term securities (cost: $14,850,000)				14,850
Total investment securities 99.85% (cost: $149,154,000)				155,466
Other assets less liabilities 0.15%				230

Net assets 100.00%			$	155,696

¹	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $4,107,000, which represented 2.64% of the net assets of the fund.
²	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Certs. of Part. = Certificates of Participation

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LOC = Letter of credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

TECP = Tax-Exempt Commercial Paper

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial statements

Statements of assets and liabilities
at July 31, 2015

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America
Assets:
Investment securities, at value	$	735,692		$	3,197,794
Cash		1,789			258
Receivables for:
Sales of investments		—			75
Sales of fund’s shares		1,728			6,154
Interest		5,261			29,763
Other		7			45
		744,477			3,234,089
Liabilities:
Payables for:
Purchases of investments		16,921			44,856
Repurchases of fund’s shares		951			4,034
Dividends on fund’s shares		65			624
Investment advisory services		227			647
Services provided by related parties		69			699
Trustees’ deferred compensation		32			131
Other		—	*		1
		18,265			50,992
Net assets at July 31, 2015	$	726,212		$	3,183,097
Net assets consist of:
Capital paid in on shares of beneficial interest	$	722,307		$	3,067,281
(Distributions in excess of) undistributed net investment income		(24	)		708
Accumulated net realized loss		(776	)		(648	)
Net unrealized appreciation		4,705			115,756
Net assets at July 31, 2015	$	726,212		$	3,183,097
Investment securities, at cost		730,987			3,082,038

Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized
Class A:
Net assets	$	653,323		$	2,670,243
Shares outstanding		64,243			167,778
Net asset value per share	$	10.17		$	15.92
Class B:
Net assets				$	720
Shares outstanding					45
Net asset value per share				$	15.92
Class C:
Net assets				$	29,992
Shares outstanding					1,885
Net asset value per share				$	15.92
Class F-1:
Net assets	$	9,238		$	83,683
Shares outstanding		908			5,258
Net asset value per share	$	10.17		$	15.92
Class F-2:
Net assets	$	63,651		$	207,860
Shares outstanding		6,259			13,060
Net asset value per share	$	10.17		$	15.92
Class R-6:
Net assets				$	190,599
Shares outstanding					11,976
Net asset value per share				$	15.92

*Amount less than one thousand.

See Notes to Financial Statements

50	American Funds Tax-Exempt Funds

(dollars and shares in thousands, except per-share amounts)

The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York

$	10,473,274		$	3,598,281		$	1,657,386		$	155,466
	980			271			2,124			154

	2,617			9,635			—			994
	18,784			9,034			3,703			219
	104,682			40,293			20,518			1,308
	150			62			9			3
	10,600,487			3,657,576			1,683,740			158,144

	103,788			47,017			18,412			2,179
	14,045			5,748			1,745			69
	2,478			1,144			703			120
	2,088			946			441			45
	2,719			976			449			34
	276			103			130			1
	2			1			—	*		—	*
	125,396			55,935			21,880			2,448
$	10,475,091		$	3,601,641		$	1,661,860		$	155,696

$	9,957,154		$	3,565,674		$	1,605,549		$	149,533
	9,014			6,018			1,557			127
	(20,747	)		(122,852	)		(33,898	)		(276	)
	529,670			152,801			88,652			6,312
$	10,475,091		$	3,601,641		$	1,661,860		$	155,696
	9,943,604			3,445,480			1,568,734			149,154

$	7,384,957		$	2,699,515		$	1,386,113		$	123,924
	569,636			175,333			78,682			11,623
$	12.96		$	15.40		$	17.62		$	10.66
$	7,195		$	3,377		$	1,341		$	45
	555			220			76			4
$	12.96		$	15.40		$	17.62		$	10.66
$	349,044		$	181,868		$	77,546		$	9,706
	26,923			11,812			4,402			910
$	12.96		$	15.40		$	17.62		$	10.66
$	1,473,963		$	207,332		$	62,543		$	1,624
	113,694			13,466			3,550			152
$	12.96		$	15.40		$	17.62		$	10.66
$	989,805		$	321,264		$	134,317		$	20,397
	76,348			20,866			7,624			1,913
$	12.96		$	15.40		$	17.62		$	10.66
$	270,127		$	188,285
	20,836			12,229
$	12.96		$	15.40

American Funds Tax-Exempt Funds

Statements of operations
for the year ended July 31, 2015

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America
Investment income:
Income:
Interest	$	12,592		$	92,858

Fees and expenses*:
Investment advisory services		2,838			7,643
Distribution services		1,091			7,965
Transfer agent services		264			1,094
Administrative services		104			516
Reports to shareholders		25			107
Registration statement and prospectus		102			224
Trustees’ compensation		7			26
Auditing and legal		47			59
Custodian		2			7
State and local taxes		—	^†		3
Other		21			33
Total fees and expenses before reimbursement		4,501			17,677
Less reimbursement of fees and expenses		—			—
Total fees and expenses after reimbursement		4,501			17,677
Net investment income		8,091			75,181

Net realized (loss) gain and unrealized (depreciation) appreciation:
Net realized (loss) gain on investments		(380	)		84
Net unrealized (depreciation) appreciation on investments		(5,652	)		(36,958	)
Net realized (loss) gain and unrealized (depreciation) appreciation		(6,032	)		(36,874	)
Net increase in net assets resulting from operations	$	2,059		$	38,307

*	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
^†	Amount less than one thousand.

See Notes to Financial Statements

52	American Funds Tax-Exempt Funds

							(dollars in thousands)

The Tax-Exempt Bond Fund of America		American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California		American Funds Tax-Exempt Fund of New York

$	381,918	$	162,272		$	64,554	$	5,037
	23,753		10,572			5,075		501
	24,867		9,433			4,306		321
	4,839		1,839			515		60
	2,131		653			269		25
	442		150			46		5
	499		300			90		82
	76		24			15		1
	100		64			89		59
	23		8			4		—	^†
	209		286			45		2
	53		39			27		16
	56,992		23,368			10,481		1,072
	—		—			—		78
	56,992		23,368			10,481		994
	324,926		138,904			54,073		4,043

	3,709		(3,961	)		957		351
	17,674		30,465			5,572		250
	21,383		26,504			6,529		601
$	346,309	$	165,408		$	60,602	$	4,644

American Funds Tax-Exempt Funds

Statements of changes in net assets

	American Funds Short-Term Tax-Exempt Bond Fund						Limited Term Tax-Exempt Bond Fund of America						The Tax-Exempt Bond Fund of America
	Year ended July 31						Year ended July 31						Year ended July 31
	2015			2014			2015			2014			2015			2014
Operations:
Net investment income	$	8,091		$	8,209		$	75,181		$	76,185		$	324,926		$	321,401
Net realized (loss) gain		(380	)		(57	)		84			(37	)		3,709			25,638
Net unrealized (depreciation) appreciation		(5,652	)		2,982			(36,958	)		28,487			17,674			302,705
Net increase in net assets resulting from operations		2,059			11,134			38,307			104,635			346,309			649,744

Dividends paid or accrued to shareholders from net investment income		(8,084	)		(8,160	)		(74,782	)		(76,058	)		(321,189	)		(319,217	)

Net capital share transactions		(65,037	)		26,291			143,346			(31,816	)		1,124,196			(484,830	)

Total (decrease) increase in net assets		(71,062	)		29,265			106,871			(3,239	)		1,149,316			(154,303	)

Net assets:
Beginning of year		797,274			768,009			3,076,226			3,079,465			9,325,775			9,480,078
End of year	$	726,212		$	797,274		$	3,183,097		$	3,076,226		$	10,475,091		$	9,325,775

(Distributions in excess of) undistributed net investment income	$	(24	)	$	(30	)	$	708		$	323		$	9,014		$	6,073

See Notes to Financial Statements

54	American Funds Tax-Exempt Funds

												(dollars in thousands)

American High-Income Municipal Bond Fund						The Tax-Exempt Fund of California						American Funds Tax-Exempt Fund of New York
Year ended July 31						Year ended July 31						Year ended July 31
2015			2014			2015			2014			2015			2014

$	138,904		$	125,934		$	54,073		$	53,953		$	4,043		$	3,691
	(3,961	)		4,737			957			4,720			351			(544	)
	30,465			131,013			5,572			62,704			250			4,902
	165,408			261,684			60,602			121,377			4,644			8,049

	(135,657	)		(124,778	)		(53,343	)		(53,648	)		(3,949	)		(3,671	)

	539,260			122,647			136,929			(54,918	)		28,236			(1,111	)

	569,011			259,553			144,188			12,811			28,931			3,267

	3,032,630			2,773,077			1,517,672			1,504,861			126,765			123,498
$	3,601,641		$	3,032,630		$	1,661,860		$	1,517,672		$	155,696		$	126,765

$	6,018		$	2,680		$	1,557		$	925		$	127		$	36

American Funds Tax-Exempt Funds

Notes to financial statements

1. Organization

American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California, which is presently the only series of The American Funds Tax-Exempt Series II, and American Funds Tax-Exempt Fund of New York (each a “fund” or collectively, the “funds”), are registered under the Investment Company Act of 1940 as open-end, diversified management investment companies.

Each fund’s investment objectives and the principal strategies each fund uses to achieve these objectives are as follows:

American Funds Short-Term Tax-Exempt Bond Fund — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America — Seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital.

American High-Income Municipal Bond Fund — Seeks to provide a high level of current income exempt from regular federal income tax.

The Tax-Exempt Fund of California — Seeks a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is preservation of capital.

American Funds Tax-Exempt Fund of New York — Seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes. Its secondary objective is preservation of capital.

American Funds Short-Term Tax-Exempt Bond Fund has three share classes (Class A, as well as two F share classes, F-1 and F-2). Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund each have six share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2) and one share class that is only available to the American Funds Portfolio Series (Class R-6). The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York each have five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2). Some share classes are only available to limited categories of investors. The funds’ share classes are described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Class A	Up to 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; up to 3.75% for all other funds	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Class B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Class B converts to Class A after eight years
Class C^†	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Classes F-1 and F-2	None	None	None
Class R-6	None	None	None

*	Class B shares are not available for purchase in Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York.
^†	Class C shares are not available for purchase in Limited Term Tax-Exempt Bond Fund of America.

Holders of all share classes of each fund have equal pro rata rights to the assets, dividends and liquidation proceeds of each fund held. Each share class of each fund 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, transfer agent and administrative 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 share class of each fund.

56	American Funds Tax-Exempt Funds

2. Significant accounting policies

Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the funds’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

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

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

Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of each fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on each fund’s ex-dividend date.

3. Valuation

Capital Research and Management Company (“CRMC”), the funds’ investment adviser, values each fund’s investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs — The funds’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the following inputs: benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data. For certain distressed securities, valuations may include cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts.

When the funds’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the funds’ investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of each fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as 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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

American Funds Tax-Exempt Funds

Processes and structure — Each fund’s board of trustees has delegated authority to the funds’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the boards of trustees with supplemental information to support the changes. Each fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The funds’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The funds’ investment adviser classifies each fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. At July 31, 2015, all of the investment securities held by each fund were classified as Level 2.

4. Risk factors

Investing in each fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the securities held by the funds may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks —The prices of, and the income generated by, securities held by the funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in municipal securities — The yield and/or value of the fund’s investments in municipal securities may be adversely affected by events tied to the municipal securities markets, which can be very volatile and significantly impacted by unfavorable legislative or political developments and negative changes in the financial conditions of municipal securities issuers and the economy. To the extent the fund invests in obligations of a municipal issuer, the volatility, credit quality and performance of the fund may be adversely impacted by local political and economic conditions of the issuer. For example, a credit rating downgrade, bond default or bankruptcy involving an issuer within a particular state or territory could affect the market values and marketability of many or all municipal obligations of that state or territory. Income from municipal securities held by the fund could also be declared taxable because of changes in tax laws or interpretations by taxing authorities or as a result of noncompliant conduct of a municipal issuer. Additionally, the relative amount of publicly available information about municipal securities is generally less than that for corporate securities.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the funds may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in a fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

58	American Funds Tax-Exempt Funds

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by the funds could cause the values of these securities to decline.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in similar municipal bonds — Investing significantly in municipal obligations of issuers in the same state or backed by revenues of similar types of projects or industries may make the fund more susceptible to certain economic, political or regulatory occurrences. As a result, the potential for fluctuations in the funds’ share price may increase.

Risks of investing in municipal bonds of issuers within the state of California — Because The Tax-Exempt Fund of California invests primarily in securities of issuers within the state of California, the fund is more susceptible to factors adversely affecting issuers of California securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, in the past, California voters have passed amendments to the state’s constitution and other measures that limit the taxing and spending authority of California governmental entities, and future voter initiatives may adversely affect California municipal bonds.

Risks of investing in municipal bonds of issuers within the state of New York — Because American Funds Tax-Exempt Fund of New York invests primarily in securities of issuers within the state of New York, the fund is more susceptible to factors adversely affecting issuers of New York securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, such factors may include political policy changes, tax base erosion, state constitutional limits on tax increases, budget deficits and other financial or economic difficulties, and changes in the credit ratings assigned to New York’s municipal issuers. New York’s economy and finances may be especially vulnerable to changes in the performance of the financial services sector, which historically has been volatile.

Management — The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the funds to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

5. Taxation and distributions

Federal income taxation — Each 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 income and net capital gains each year. The funds are not subject to income taxes to the extent taxable income and net capital gains are distributed. Generally, income earned by each fund is exempt from federal income taxes; however, each fund may earn taxable income from certain investments.

As of and during the period ended July 31, 2015, none of the funds had a liability for any unrecognized tax benefits. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statement of operations. During the period, none of the funds incurred any significant interest or penalties.

American Funds Tax-Exempt Funds

The funds are not subject to examination by U.S. federal tax authorities or state tax authorities for tax years before the dates shown in the following table:

Fund	U.S. federal tax authority		State tax authority
American Funds Short-Term Tax-Exempt Bond Fund		2011		2010
Limited Term Tax-Exempt Bond Fund of America		2011		2010
The Tax-Exempt Bond Fund of America		2011		2010
American High-Income Municipal Bond Fund		2011		2010
The Tax-Exempt Fund of California		2011		2010
American Funds Tax-Exempt Fund of New York		2011		2010	*

*	The year the fund commenced operations.

Distributions — Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses; amortization of premium and discounts; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.

As indicated in the tables on the following page, all of the funds had capital loss carryforwards available at July 31, 2015. These will be used to offset any capital gains realized by these funds in future years through the expiration dates. Funds with a capital loss carryforward will not make distributions from capital gains while a capital loss carryforward remains.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after July 31, 2011, (August 31, 2011, for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California) may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

60	American Funds Tax-Exempt Funds

Additional tax basis disclosures for each fund are as follows (dollars in thousands):

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America			The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York
Undistributed tax-exempt income	$	67		$	913		$	3,620		$	1,770		$	910		$	133
Post-October capital loss deferral*		—			—			(2,670	)		—			(107	)		—
Capital loss carryforward:
No expiration		(777	)		(647	)		—			(11,258	)		—			(277	)
Expiring 2017		—			—			—			(14,384	)		(3,446	)		—
Expiring 2018		—			—			(15,678	)		(69,970	)		(30,345	)		—
Expiring 2019		—			—			—			(24,408	)		—			—
		(777	)		(647	)		(15,678	)		(120,020	)		(33,791	)		(277	)
Capital loss carryforward utilized		—			97			1,412			—			426			351
Gross unrealized appreciation on investment securities		6,016			120,471			589,012			214,753			102,780			7,264
Gross unrealized depreciation on investment securities		(1,303	)		(4,166	)		(52,473	)		(55,480	)		(12,647	)		(837	)
Net unrealized appreciation on investment securities		4,713			116,305			536,539			159,273			90,133			6,427
Cost of investment securities		730,979			3,081,489			9,936,735			3,439,008			1,567,253			149,039
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) accumulated net realized loss		(1	)		(12	)		(626	)		174			(65	)		(4	)
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) capital paid in on shares of beneficial interest		—			(2	)		(170	)		(83	)		(33	)		1

*	This deferral is considered incurred in the subsequent year.

Tax-exempt income distributions paid or accrued to shareholders of each fund were as follows (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

Share class	Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	7,392	$	7,558
Class F-1		92		198
Class F-2		600		404
Total	$	8,084	$	8,160

Limited Term Tax-Exempt Bond Fund of America

Share class	Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	62,578	$	64,709
Class B		22		46
Class C		532		767
Class F-1		1,992		2,895
Class F-2		5,317		4,223
Class R-6		4,341		3,418
Total	$	74,782	$	76,058

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Share class	Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	231,655	$	235,838
Class B		256		437
Class C		8,319		9,228
Class F-1		44,346		52,597
Class F-2		28,978		16,175
Class R-6		7,635		4,942
Total	$	321,189	$	319,217

American High-Income Municipal Bond Fund

Share class		Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	104,118	$	99,609
Class B		163		283
Class C		5,732		5,699
Class F-1		7,566		7,824
Class F-2		11,686		7,621
Class R-6		6,392		3,742
Total	$	135,657	$	124,778

The Tax-Exempt Fund of California

Share class		Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	44,830	$	45,341
Class B		47		81
Class C		1,990		2,261
Class F-1		1,921		2,450
Class F-2		4,555		3,515
Total	$	53,343	$	53,648

American Funds Tax-Exempt Fund of New York

Share class		Year ended July 31, 2015		Year ended July 31, 2014
Class A	$	3,198	$	3,002
Class B		1		2
Class C		176		163
Class F-1		41		34
Class F-2		533		470
Total	$	3,949	$	3,671

62	American Funds Tax-Exempt Funds

6. Fees and transactions with related parties

CRMC, the funds’ investment adviser, is the parent company of American Funds Distributors,^® Inc. (“AFD”), the principal underwriter of the funds’ shares, and American Funds Service Company^® (“AFS”), the funds’ transfer agent. CRMC, AFD and AFS are considered related parties to each fund.

Investment advisory services — Each fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as average net asset levels increase. The agreement for each fund, except American Funds Short-Term Tax-Exempt Bond Fund, also provides for monthly fees accrued daily based on a series of decreasing rates on each fund’s monthly gross income.

The range of rates, net asset levels, gross income levels and annualized rates of average net assets for each fund are as follows:

	Rates					Net asset level (in billions)				Rates				Monthly gross income				For the year ended
Fund	Beginning with		Ending with			Up to		In excess of		Beginning with		Ending with		Up to		In excess of		July 31, 2015
American Funds Short-Term Tax-Exempt Bond Fund	.390	%		.290	%	$	.20	$	1.2	None			None		None		None		.366	%
Limited Term Tax-Exempt Bond Fund of America	.300			.150			.06		1.0	3.00	%		2.50%	$	3,333,333	$	3,333,333		.241
The Tax-Exempt Bond Fund of America	.300			.120			.06		10.0	3.00			2.00		3,333,333		8,333,333		.238
American High-Income Municipal Bond Fund	.300			.150			.06		3.0	3.00			2.50		3,333,333		3,333,333		.313
The Tax-Exempt Fund of California	.300			.180			.06		1.0	3.00			2.50		3,333,333		3,333,333		.314
American Funds Tax-Exempt Fund of New York	.300			.180			.06		1.0	3.00			2.50		3,333,333		3,333,333		.355

CRMC has agreed to reimburse a portion of the fees and expenses of American Funds Tax-Exempt Fund of New York during its startup period. This reimbursement may be adjusted or discontinued by CRMC, subject to any restrictions in the fund’s prospectus. For the year ended July 31, 2015, total fees and expenses reimbursed by CRMC were $78,000. Fees and expenses in the statement of operations are presented gross of any reimbursements from CRMC.

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

Distribution services — Each fund has plans of distribution for all share classes, except Class F-2 and Class R-6 shares, if applicable. Under the plans, each fund’s board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments based on an annualized percentage of average daily net assets. In some cases, the boards of trustees have limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use the allotted percentage of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

	American Funds Short-Term Tax-Exempt Bond Fund						Limited Term Tax-Exempt Bond Fund of America						The Tax-Exempt Bond Fund of America
	Currently						Currently						Currently
Share class	approved limits			Plan limits			approved limits			Plan limits			approved limits			Plan limits
Class A		0.15	%		0.15	%		0.30	%		0.30	%		0.25	%		0.25	%
Class B		Not applicable			Not applicable			1.00			1.00			1.00			1.00
Class C		Not applicable			Not applicable			1.00			1.00			1.00			1.00
Class F-1		0.25			0.50			0.25			0.50			0.25			0.50

American Funds Tax-Exempt Funds

	American High-Income Municipal Bond Fund						The Tax-Exempt Fund of California						American Funds Tax-Exempt Fund of New York
	Currently						Currently						Currently
Share class	approved limits			Plan limits			approved limits			Plan limits			approved limits			Plan limits
Class A		0.30	%		0.30	%		0.25	%		0.25	%		0.25	%		0.30	%
Class B		1.00			1.00			1.00			1.00			1.00			1.00
Class C		1.00			1.00			1.00			1.00			1.00			1.00
Class F-1		0.25			0.50			0.25			0.50			0.25			0.50

For Class A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. This share class of each fund reimburses AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit is not exceeded. As of July 31, 2015, unreimbursed expenses subject to reimbursement for Class A shares of each fund were as follows (dollars in thousands):

Fund			Class A
American Funds Short-Term Tax-Exempt Bond Fund			$ 948
Limited-Term Tax-Exempt Bond Fund of America			—
The Tax-Exempt Bond Fund of America			4,640
American High-Income Municipal Bond Fund			—
The Tax-Exempt Fund of California			739
American Funds Tax-Exempt Fund of New York			—

Transfer agent services — Each fund has a shareholder services agreement with AFS under which each fund compensates AFS for providing transfer agent services to each of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, each fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of its respective fund shareholders.

Administrative services — Each fund has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to each of the funds’ Class A, C, F and R shares, if applicable. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to each fund’s shareholders. Under the agreements, Class A shares of each fund pay an annual fee of 0.01% and Class C, F and R shares of each fund, if applicable, pay an annual fee of 0.05% of their respective average daily net assets.

For the year ended July 31, 2015, class-specific expenses under the agreements for each fund were as follows (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

Distribution

Transfer agent

Administrative

Share class

services

Class A

$1,063

$192

$ 71

Class F-1

Class F-2

Not applicable

Total class-specific expenses

$1,091

$264

$104

Limited Term Tax-Exempt Bond Fund of America

Distribution

Transfer agent

Administrative

Share class

services

Class A

$7,397

$ 758

$266

Class B

—

Not applicable

Class C

334

Class F-1

221

Class F-2

Not applicable

228

106

Class R-6

Not applicable

—

Total class-specific expenses

$7,965

$1,094

$516

The Tax-Exempt Bond Fund of America
	Distribution		Transfer agent			Administrative
Share class		services		services			services
Class A		$17,838		$2,187			$ 714
Class B		102		3			Not applicable
Class C		3,380		105			169
Class F-1		3,547		1,639			711
Class F-2		Not applicable		905			428
Class R-6		Not applicable		—	*		109
Total class-specific expenses		$24,867		$4,839			$2,131

American High-Income Municipal Bond Fund
	Distribution		Transfer agent			Administrative
Share class		services		services			services
Class A		$7,160		$1,245			$258
Class B		49		3		Not applicable
Class C		1,748		86			88
Class F-1		476		213			95
Class F-2		Not applicable		292			138
Class R-6		Not applicable		—	*		74
Total class-specific expenses		$9,433		$1,839			$653

64	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Distribution

Transfer agent

Administrative

Share class

services

Class A

$3,359

$291

$134

Class B

—

Not applicable

Class C

780

Class F-1

149

Class F-2

Not applicable

144

Total class-specific expenses

$4,306

$515

$269

American Funds Tax-Exempt Fund of New York
	Distribution		Transfer agent		Administrative
Share class	services		services		services
Class A	$230		$39		$11
Class B	—	*	—	*	Not applicable
Class C	88		3		4
Class F-1	3		1		1
Class F-2	Not applicable		17		9
Total class-specific expenses	$321		$60		$25

*	Amount less than one thousand.

Trustees’ deferred compensation — 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 each fund, are treated as if invested in shares of the funds or other American Funds. These amounts represent general, unsecured liabilities of each fund and vary according to the total returns of the selected funds. Trustees’ compensation in the funds’ statement of operations includes the current fees (either paid in cash or deferred) and a net increase in the value of the following deferred amounts (dollars in thousands):

			Increase in value of			Total trustees’
Fund	Current fees		deferred amounts			compensation
American Funds Short-Term Tax-Exempt Bond Fund		$ 6		$ 1			$ 7
Limited Term Tax-Exempt Bond Fund of America		22		4			26
The Tax-Exempt Bond Fund of America		67		9			76
American High-Income Municipal Bond Fund		21		3			24
The Tax-Exempt Fund of California		11		4			15
American Funds Tax-Exempt Fund of New York		1		—	*		1

*Amount less than one thousand.

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

7. Capital share transactions

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

American Funds Short-Term Tax-Exempt Bond Fund

	Sales*			Reinvestments of dividends			Repurchases*					Net (decrease) increase
Share class		Amount	Shares		Amount	Shares		Amount		Shares		Amount			Shares

Year ended July 31, 2015
Class A	$	226,415	22,149	$	6,692	655	$	(311,118	)	(30,452	)	$	(78,011	)	(7,648	)
Class F-1		3,788	370		92	9		(8,533	)	(834	)		(4,653	)	(455	)
Class F-2		71,689	7,024		489	48		(54,551	)	(5,348	)		17,627		1,724
Total net increase (decrease)	$	301,892	29,543	$	7,273	712	$	(374,202	)	(36,634	)	$	(65,037	)	(6,379	)

Year ended July 31, 2014
Class A	$	266,682	26,075	$	6,625	647	$	(240,284	)	(23,484	)	$	33,023		3,238
Class F-1		12,729	1,244		198	19		(28,743	)	(2,807	)		(15,816	)	(1,544	)
Class F-2		47,396	4,630		342	34		(38,654	)	(3,781	)		9,084		883
Total net increase (decrease)	$	326,807	31,949	$	7,165	700	$	(307,681	)	(30,072	)	$	26,291		2,577

See page 68 for footnotes.

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Sales*			Reinvestments of dividends			Repurchases*					Net increase (decrease)
Share class	Amount		Shares	Amount		Shares	Amount			Shares		Amount			Shares

Year ended July 31, 2015
Class A	$	511,796	31,861	$	58,014	3,614	$	(484,127	)	(30,151	)	$	85,683		5,324
Class B		67	4		21	1		(1,299	)	(81	)		(1,211	)	(76	)
Class C		5,323	331		513	32		(13,432	)	(836	)		(7,596	)	(473	)
Class F-1		14,553	906		1,901	118		(36,973	)	(2,298	)		(20,519	)	(1,274	)
Class F-2		98,669	6,135		4,491	280		(75,895	)	(4,727	)		27,265		1,688
Class R-6		67,930	4,228		4,341	271		(12,547	)	(782	)		59,724		3,717
Total net increase (decrease)	$	698,338	43,465	$	69,281	4,316	$	(624,273	)	(38,875	)	$	143,346		8,906

Year ended July 31, 2014
Class A	$	487,274	30,443	$	59,752	3,729	$	(581,043	)	(36,342	)	$	(34,017	)	(2,170	)
Class B		349	22		44	3		(1,603	)	(100	)		(1,210	)	(75	)
Class C		9,024	564		733	46		(21,570	)	(1,348	)		(11,813	)	(738	)
Class F-1		37,856	2,365		2,807	175		(59,138	)	(3,688	)		(18,475	)	(1,148	)
Class F-2		97,188	6,064		3,351	209		(67,054	)	(4,197	)		33,485		2,076
Class R-6		26,715	1,665		3,419	213		(29,920	)	(1,877	)		214		1
Total net increase (decrease)	$	658,406	41,123	$	70,106	4,375	$	(760,328	)	(47,552	)	$	(31,816	)	(2,054	)

The Tax-Exempt Bond Fund of America

				Reinvestments of								Net increase
	Sales*			dividends			Repurchases*					(decrease)
Share class	Amount		Shares	Amount		Shares	Amount			Shares		Amount			Shares

Year ended July 31, 2015
Class A	$	1,166,527	89,279	$	210,997	16,150	$	(783,919	)	(60,074	)	$	593,605		45,355
Class B		366	28		248	19		(6,082	)	(466	)		(5,468	)	(419	)
Class C		83,656	6,403		7,868	602		(68,383	)	(5,240	)		23,141		1,765
Class F-1		324,142	24,816		43,866	3,358		(287,808	)	(22,060	)		80,200		6,114
Class F-2		446,591	34,216		26,012	1,991		(145,323	)	(11,130	)		327,280		25,077
Class R-6		103,919	7,954		7,634	584		(6,115	)	(468	)		105,438		8,070
Total net increase (decrease)	$	2,125,201	162,696	$	296,625	22,704	$	(1,297,630	)	(99,438	)	$	1,124,196		85,962

Year ended July 31, 2014
Class A	$	675,556	53,456	$	213,622	16,921	$	(1,341,982	)	(107,292	)	$	(452,804	)	(36,915	)
Class B		650	52		418	33		(8,667	)	(691	)		(7,599	)	(606	)
Class C		39,872	3,153		8,663	687		(110,759	)	(8,853	)		(62,224	)	(5,013	)
Class F-1		527,089	41,931		51,868	4,115		(905,891	)	(71,801	)		(326,934	)	(25,755	)
Class F-2		442,389	34,817		13,572	1,071		(136,652	)	(10,912	)		319,309		24,976
Class R-6		55,842	4,409		4,942	391		(15,362	)	(1,236	)		45,422		3,564
Total net increase (decrease)	$	1,741,398	137,818	$	293,085	23,218	$	(2,519,313	)	(200,785	)	$	(484,830	)	(39,749	)

66	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Sales*				Reinvestments of dividends				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2015
Class A	$	582,004		37,495	$	96,061		6,188	$	(360,143	)		(23,213	)	$	317,922			20,470
Class B		334		22		154		10		(3,271	)		(211	)		(2,783	)		(179	)
Class C		55,686		3,585		5,320		343		(41,042	)		(2,648	)		19,964			1,280
Class F-1		78,498		5,049		7,372		475		(57,976	)		(3,746	)		27,894			1,778
Class F-2		145,866		9,397		9,910		639		(59,263	)		(3,823	)		96,513			6,213
Class R-6		73,819		4,754		6,392		412		(461	)		(30	)		79,750			5,136
Total net increase (decrease)	$	936,207		60,302	$	125,209		8,067	$	(522,156	)		(33,671	)	$	539,260			34,698

Year ended July 31, 2014
Class A	$	438,553		29,734	$	92,218		6,274	$	(526,377	)		(36,264	)	$	4,394			(256	)
Class B		548		37		263		18		(4,620	)		(318	)		(3,809	)		(263	)
Class C		40,695		2,756		5,263		358		(53,623	)		(3,683	)		(7,665	)		(569	)
Class F-1		80,187		5,464		7,646		520		(91,186	)		(6,184	)		(3,353	)		(200	)
Class F-2		195,919		13,224		6,484		439		(114,860	)		(7,734	)		87,543			5,929
Class R-6		43,501		2,949		3,742		253		(1,706	)		(119	)		45,537			3,083
Total net increase (decrease)	$	799,403		54,164	$	115,616		7,862	$	(792,372	)		(54,302	)	$	122,647			7,724

The Tax-Exempt Fund of California

	Sales*				Reinvestments of dividends				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2015
Class A	$	212,686		11,982	$	38,804		2,186	$	(136,473	)		(7,697	)	$	115,017			6,471
Class B		62		3		45		3		(1,048	)		(59	)		(941	)		(53	)
Class C		15,438		870		1,845		104		(15,711	)		(888	)		1,572			86
Class F-1		16,450		928		1,796		101		(20,701	)		(1,172	)		(2,455	)		(143	)
Class F-2		46,534		2,624		3,856		217		(26,654	)		(1,501	)		23,736			1,340
Total net increase (decrease)	$	291,170		16,407	$	46,346		2,611	$	(200,587	)		(11,317	)	$	136,929			7,701

Year ended July 31, 2014
Class A	$	135,776		7,971	$	39,000		2,290	$	(216,325	)		(12,820	)	$	(41,549	)		(2,559	)
Class B		16		1		77		4		(1,265	)		(75	)		(1,172	)		(70	)
Class C		8,353		488		2,086		123		(24,821	)		(1,472	)		(14,382	)		(861	)
Class F-1		13,404		790		2,324		137		(28,125	)		(1,657	)		(12,397	)		(730	)
Class F-2		39,559		2,309		2,868		168		(27,845	)		(1,652	)		14,582			825
Total net increase (decrease)	$	197,108		11,559	$	46,355		2,722	$	(298,381	)		(17,676	)	$	(54,918	)		(3,395	)

See page 68 for footnotes.

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Sales*				Reinvestments of dividends					Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount			Shares

Year ended July 31, 2015
Class A	$	28,352		2,636	$	1,969		183		$	(8,840	)		(824	)	$	21,481			1,995
Class B		15		1		1		—	^†		(23	)		(2	)		(7	)		(1	)
Class C		3,231		300		165		15			(1,537	)		(143	)		1,859			172
Class F-1		699		65		22		2			(174	)		(16	)		547			51
Class F-2		7,365		684		404		38			(3,413	)		(317	)		4,356			405
Total net increase (decrease)	$	39,662		3,686	$	2,561		238		$	(13,987	)		(1,302	)	$	28,236			2,622

Year ended July 31, 2014
Class A	$	20,842		2,022	$	1,772		172		$	(24,070	)		(2,345	)	$	(1,456	)		(151	)
Class B		13		2		2		—	^†		(138	)		(14	)		(123	)		(12	)
Class C		2,012		196		153		15			(2,385	)		(233	)		(220	)		(22	)
Class F-1		263		26		15		1			(614	)		(60	)		(336	)		(33	)
Class F-2		6,340		614		406		39			(5,722	)		(554	)		1,024			99
Total net increase (decrease)	$	29,470		2,860	$	2,348		227		$	(32,929	)		(3,206	)	$	(1,111	)		(119	)

*	Includes exchanges between share classes of the fund.
^†	Amount less than one thousand.

8. Investment transactions

Each fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, during the year ended July 31, 2015, as follows (dollars in thousands):

Fund	Purchases		Sales
American Funds Short-Term Tax-Exempt Bond Fund	$	323,782	$	278,241
Limited Term Tax-Exempt Bond Fund of America		910,995		589,394
The Tax-Exempt Bond Fund of America		2,903,758		1,314,506
American High-Income Municipal Bond Fund		1,454,314		752,471
The Tax-Exempt Fund of California		452,843		256,304
American Funds Tax-Exempt Fund of New York		80,689		53,528

9. Ownership concentration

At July 31, 2015, CRMC held aggregate ownership of 25% of the outstanding shares of American Funds Tax-Exempt Fund of New York. The ownership represents the seed money invested in the fund when it began operations on November 1, 2010.

68	American Funds Tax-Exempt Funds

Financial highlights

American Funds Short-Term Tax-Exempt Bond Fund

			Income (loss) from
			investment operations¹								Dividends and distributions
					Net (losses)
	Net asset				gains on						Dividends						Total			Net asset							Ratio of			Ratio of
	value,		Net		securities (both			Total from			(from net			Distributions			dividends			value,					Net assets,		expenses to			net income
	beginning		investment		realized and			investment			investment			(from capital			and			end		Total			end of year		average			to average
Period ended	of period		income		unrealized)			operations			income)			gains)			distributions			of year		return²			(in millions)		net assets			net assets
Class A:
7/31/2015	$	10.25	$	.11	$	(.08	)	$	.03		$	(.11	)	$	—		$	(.11	)	$	10.17		.26	%	$	653		.58	%		1.04	%
7/31/2014		10.21		.11		.04			.15			(.11	)		—			(.11	)		10.25		1.43			737		.58			1.04
7/31/2013		10.32		.13		(.11	)		.02			(.13	)		—	³		(.13	)		10.21		.16			701		.59			1.21
7/31/2012		10.23		.13		.09			.22			(.13	)		—			(.13	)		10.32		2.17			606		.59			1.27
7/31/2011		10.20		.12		.03			.15			(.12	)		—			(.12	)		10.23		1.53			520		.60			1.24
Class F-1:
7/31/2015		10.25		.08		(.08	)		—			(.08	)		—			(.08	)		10.17		.05			9		.80			.83
7/31/2014		10.21		.08		.04			.12			(.08	)		—			(.08	)		10.25		1.19			14		.82			.80
7/31/2013		10.32		.10		(.11	)		(.01	)		(.10	)		—	³		(.10	)		10.21		(.08	)		30		.84			.96
7/31/2012		10.23		.11		.09			.20			(.11	)		—			(.11	)		10.32		1.98			18		.78			1.09
7/31/2011		10.20		.11		.03			.14			(.11	)		—			(.11	)		10.23		1.34			14		.79			1.04
Class F-2:
7/31/2015		10.25		.11		(.08	)		.03			(.11	)		—			(.11	)		10.17		.29			64		.55			1.08
7/31/2014		10.21		.11		.04			.15			(.11	)		—			(.11	)		10.25		1.47			46		.54			1.07
7/31/2013		10.32		.13		(.11	)		.02			(.13	)		—	³		(.13	)		10.21		.19			37		.56			1.23
7/31/2012		10.23		.14		.09			.23			(.14	)		—			(.14	)		10.32		2.24			15		.52			1.33
7/31/2011		10.20		.13		.03			.16			(.13	)		—			(.13	)		10.23		1.58			17		.55			1.28

	Year ended July 31
	2015			2014			2013			2012			2011
Portfolio turnover rate for all share classes		38	%		20	%		22	%		14	%		12	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Amount less than $.01.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

Limited Term Tax-Exempt Bond Fund of America

			Income (loss) from
			investment operations¹								Dividends and distributions
					Net (losses)
	Net asset				gains on						Dividends						Total			Net asset							Ratio of			Ratio of
	value,		Net		securities (both			Total from			(from net			Distributions			dividends			value,					Net assets,		expenses to			net income
	beginning		investment		realized and			investment			investment			(from capital			and			end		Total			end of year		average			to average
Period ended	of period		income		unrealized)			operations			income)			gains)			distributions			of year		return^2,3			(in millions)		net assets			net assets
Class A:
7/31/2015	$	16.10	$	.38	$	(.18	)	$	.20		$	(.38	)	$	—		$	(.38	)	$	15.92		1.23	%	$	2,670		.57	%		2.36	%
7/31/2014		15.94		.40		.16			.56			(.40	)		—			(.40	)		16.10		3.56			2,615		.60			2.51
7/31/2013		16.36		.40		(.42	)		(.02	)		(.40	)		—	⁴		(.40	)		15.94		(.13	)		2,625		.60			2.45
7/31/2012		15.85		.44		.51			.95			(.44	)		—			(.44	)		16.36		6.06			2,549		.60			2.72
7/31/2011		15.78		.46		.07			.53			(.46	)		—			(.46	)		15.85		3.41			2,232		.60			2.93
Class B:
7/31/2015		16.10		.26		(.18	)		.08			(.26	)		—			(.26	)		15.92		.52			1		1.28			1.66
7/31/2014		15.94		.29		.16			.45			(.29	)		—			(.29	)		16.10		2.85			2		1.29			1.83
7/31/2013		16.36		.29		(.42	)		(.13	)		(.29	)		—	⁴		(.29	)		15.94		(.82	)		3		1.29			1.78
7/31/2012		15.85		.33		.51			.84			(.33	)		—			(.33	)		16.36		5.33			6		1.30			2.04
7/31/2011		15.78		.35		.07			.42			(.35	)		—			(.35	)		15.85		2.69			10		1.31			2.24
Class C:
7/31/2015		16.10		.26		(.18	)		.08			(.26	)		—			(.26	)		15.92		.47			30		1.33			1.60
7/31/2014		15.94		.28		.16			.44			(.28	)		—			(.28	)		16.10		2.80			38		1.34			1.78
7/31/2013		16.36		.28		(.42	)		(.14	)		(.28	)		—	⁴		(.28	)		15.94		(.87	)		49		1.34			1.72
7/31/2012		15.85		.32		.51			.83			(.32	)		—			(.32	)		16.36		5.27			75		1.34			1.99
7/31/2011		15.78		.34		.07			.41			(.34	)		—			(.34	)		15.85		2.64			69		1.36			2.19
Class F-1:
7/31/2015		16.10		.36		(.18	)		.18			(.36	)		—			(.36	)		15.92		1.13			84		.67			2.27
7/31/2014		15.94		.39		.16			.55			(.39	)		—			(.39	)		16.10		3.49			105		.67			2.45
7/31/2013		16.36		.39		(.42	)		(.03	)		(.39	)		—	⁴		(.39	)		15.94		(.22	)		122		.69			2.37
7/31/2012		15.85		.43		.51			.94			(.43	)		—			(.43	)		16.36		6.00			132		.65			2.67
7/31/2011		15.78		.45		.07			.52			(.45	)		—			(.45	)		15.85		3.37			104		.65			2.89
Class F-2:
7/31/2015		16.10		.40		(.18	)		.22			(.40	)		—			(.40	)		15.92		1.39			208		.41			2.52
7/31/2014		15.94		.43		.16			.59			(.43	)		—			(.43	)		16.10		3.75			183		.42			2.69
7/31/2013		16.36		.43		(.42	)		.01			(.43	)		—	⁴		(.43	)		15.94		.05			148		.42			2.64
7/31/2012		15.85		.47		.51			.98			(.47	)		—			(.47	)		16.36		6.28			162		.38			2.94
7/31/2011		15.78		.49		.07			.56			(.49	)		—			(.49	)		15.85		3.65			132		.38			3.15
Class R-6:
7/31/2015		16.10		.42		(.18	)		.24			(.42	)		—			(.42	)		15.92		1.50			190		.31			2.62
7/31/2014		15.94		.45		.16			.61			(.45	)		—			(.45	)		16.10		3.86			133		.31			2.80
7/31/2013		16.36		.45		(.42	)		.03			(.45	)		—	⁴		(.45	)		15.94		.16			132		.31			2.72
7/31/2012^5,6		16.32		.10		.05			.15			(.11	)		—			(.11	)		16.36		.90			43		.07	³		.64	³

	Year ended July 31
	2015			2014			2013	2012			2011
Portfolio turnover rate for all share classes		19	%		9	%	13%		9	%		14	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Not annualized.
⁴	Amount less than $.01.
⁵	Class R-6 shares were offered beginning May 11, 2012.
⁶	Based on operations for the period shown and, accordingly, is not representative of a full year.

See Notes to Financial Statements

70	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

			Income (loss) from investment operations¹
					Net gains
	Net asset				(losses) on						Dividends			Net asset							Ratio of			Ratio of
	value,		Net		securities (both			Total from			(from net			value,					Net assets,		expenses			net income
	beginning		investment		realized and			investment			investment			end		Total			end of period		to average			to average
Period ended	of period		income		unrealized)			operations			income)			of period		return^2,3			(in millions)		net assets			net assets
Class A:
7/31/2015	$	12.92	$	.42	$	.04		$	.46		$	(.42	)	$	12.96		3.62	%	$	7,385		.54	%		3.28	%
7/31/2014		12.44		.45		.48			.93			(.45	)		12.92		7.60			6,772		.56			3.57
7/31/2013^4,5		13.08		.40		(.64	)		(.24	)		(.40	)		12.44		(1.93	)		6,984		.55	⁶		3.35	⁶
8/31/2012		12.26		.47		.82			1.29			(.47	)		13.08		10.71			7,445		.55			3.73
8/31/2011		12.53		.48		(.27	)		.21			(.48	)		12.26		1.85			6,557		.55			4.01
8/31/2010		11.82		.48		.71			1.19			(.48	)		12.53		10.23			7,740		.54			3.92
Class B:
7/31/2015		12.92		.33		.04			.37			(.33	)		12.96		2.85			7		1.28			2.55
7/31/2014		12.44		.35		.48			.83			(.35	)		12.92		6.81			13		1.30			2.84
7/31/2013^4,5		13.08		.31		(.64	)		(.33	)		(.31	)		12.44		(2.59	)		20		1.30	⁶		2.61	⁶
8/31/2012		12.26		.38		.82			1.20			(.38	)		13.08		9.90			30		1.29			3.01
8/31/2011		12.53		.39		(.27	)		.12			(.39	)		12.26		1.08			40		1.30			3.26
8/31/2010		11.82		.38		.71			1.09			(.38	)		12.53		9.41			78		1.30			3.18
Class C:
7/31/2015		12.92		.32		.04			.36			(.32	)		12.96		2.80			349		1.33			2.50
7/31/2014		12.44		.35		.48			.83			(.35	)		12.92		6.75			325		1.35			2.79
7/31/2013^4,5		13.08		.31		(.64	)		(.33	)		(.31	)		12.44		(2.64	)		375		1.34	⁶		2.56	⁶
8/31/2012		12.26		.37		.82			1.19			(.37	)		13.08		9.85			420		1.34			2.94
8/31/2011		12.53		.39		(.27	)		.12			(.39	)		12.26		1.03			370		1.35			3.21
8/31/2010		11.82		.38		.71			1.09			(.38	)		12.53		9.35			475		1.34			3.11
Class F-1:
7/31/2015		12.92		.41		.04			.45			(.41	)		12.96		3.49			1,474		.67			3.16
7/31/2014		12.44		.43		.48			.91			(.43	)		12.92		7.46			1,389		.68			3.46
7/31/2013^4,5		13.08		.39		(.64	)		(.25	)		(.39	)		12.44		(2.05	)		1,659		.68	⁶		3.21	⁶
8/31/2012		12.26		.46		.82			1.28			(.46	)		13.08		10.59			1,526		.66			3.62
8/31/2011		12.53		.47		(.27	)		.20			(.47	)		12.26		1.73			1,356		.66			3.90
8/31/2010		11.82		.46		.71			1.17			(.46	)		12.53		10.12			1,380		.64			3.80
Class F-2:
7/31/2015		12.92		.44		.04			.48			(.44	)		12.96		3.76			990		.41			3.42
7/31/2014		12.44		.46		.48			.94			(.46	)		12.92		7.74			662		.42			3.70
7/31/2013^4,5		13.08		.42		(.64	)		(.22	)		(.42	)		12.44		(1.81	)		327		.42	⁶		3.49	⁶
8/31/2012		12.26		.49		.82			1.31			(.49	)		13.08		10.88			239		.40			3.87
8/31/2011		12.53		.50		(.27	)		.23			(.50	)		12.26		1.99			196		.41			4.15
8/31/2010		11.82		.50		.71			1.21			(.50	)		12.53		10.41			216		.37			4.09
Class R-6:
7/31/2015		12.92		.46		.04			.50			(.46	)		12.96		3.86			270		.30			3.52
7/31/2014		12.44		.48		.48			.96			(.48	)		12.92		7.86			165		.31			3.81
7/31/2013^4,5		13.08		.43		(.64	)		(.21	)		(.43	)		12.44		(1.71	)		115		.31	⁶		3.58	⁶
8/31/2012^4,7		12.94		.14		.15			.29			(.15	)		13.08		2.25			42		.09	²		1.15	²

	Year ended				For the period		Year ended
	July 31				9/1/2012 to		August 31
		2015	2014		7/31/2013^2,4,5		2012			2011			2010
Portfolio turnover rate for all share classes		14%		10%		16%		14	%		12	%		16	%

¹	Based on average shares outstanding.
²	Not annualized.
³	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	In 2013, the fund changed its fiscal year-end from August to July.
⁶	Annualized.
⁷	Class R-6 shares were offered beginning May 11, 2012.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

American High-Income Municipal Bond Fund

			Income (loss) from investment operations¹
					Net gains
	Net asset				(losses) on						Dividends			Net asset							Ratio of			Ratio of
	value,		Net		securities (both			Total from			(from net			value,					Net assets,		expenses			net income
	beginning		investment		realized and			investment			investment			end		Total			end of period		to average			to average
Period ended	of period		income		unrealized)			operations			income)			of period		return^2,3			(in millions)		net assets			net assets
Class A:
7/31/2015	$	15.22	$	.64	$	.17		$	.81		$	(.63	)	$	15.40		5.34	%	$	2,700		.68	%		4.13	%
7/31/2014		14.48		.68		.73			1.41			(.67	)		15.22		9.99			2,357		.68			4.59
7/31/2013		15.13		.63		(.65	)		(.02	)		(.63	)		14.48		(.25	)		2,246		.69			4.14
7/31/2012		13.78		.66		1.35			2.01			(.66	)		15.13		14.98			2,286		.68			4.64
7/31/2011		13.97		.67		(.19	)		.48			(.67	)		13.78		3.57			1,849		.64			4.86
Class B:
7/31/2015		15.22		.53		.17			.70			(.52	)		15.40		4.60			4		1.39			3.43
7/31/2014		14.48		.57		.73			1.30			(.56	)		15.22		9.17			6		1.44			3.87
7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48		(.97	)		10		1.42			3.42
7/31/2012		13.78		.56		1.35			1.91			(.56	)		15.13		14.14			16		1.42			3.96
7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78		2.78			21		1.41			4.07
Class C:
7/31/2015		15.22		.52		.17			.69			(.51	)		15.40		4.55			182		1.44			3.37
7/31/2014		14.48		.56		.73			1.29			(.55	)		15.22		9.12			161		1.48			3.80
7/31/2013		15.13		.52		(.65	)		(.13	)		(.52	)		14.48		(1.02	)		161		1.46			3.37
7/31/2012		13.78		.55		1.35			1.90			(.55	)		15.13		14.09			170		1.46			3.86
7/31/2011		13.97		.56		(.19	)		.37			(.56	)		13.78		2.73			137		1.46			4.03
Class F-1:
7/31/2015		15.22		.62		.17			.79			(.61	)		15.40		5.27			207		.75			4.06
7/31/2014		14.48		.66		.73			1.39			(.65	)		15.22		9.87			178		.79			4.49
7/31/2013		15.13		.62		(.65	)		(.03	)		(.62	)		14.48		(.35	)		172		.79			4.04
7/31/2012		13.78		.65		1.35			2.00			(.65	)		15.13		14.89			191		.76			4.56
7/31/2011		13.97		.65		(.19	)		.46			(.65	)		13.78		3.45			146		.76			4.73
Class F-2:
7/31/2015		15.22		.66		.17			.83			(.65	)		15.40		5.53			321		.49			4.32
7/31/2014		14.48		.70		.73			1.43			(.69	)		15.22		10.15			223		.53			4.71
7/31/2013		15.13		.66		(.65	)		.01			(.66	)		14.48		(.09	)		126		.52			4.31
7/31/2012		13.78		.69		1.35			2.04			(.69	)		15.13		15.20			87		.49			4.81
7/31/2011		13.97		.69		(.19	)		.50			(.69	)		13.78		3.74			58		.48			5.03
Class R-6:
7/31/2015		15.22		.68		.17			.85			(.67	)		15.40		5.64			188		.39			4.42
7/31/2014		14.48		.72		.73			1.45			(.71	)		15.22		10.27			108		.42			4.82
7/31/2013		15.13		.68		(.65	)		.03			(.68	)		14.48		.02			58		.40			4.44
7/31/2012^4,5		14.86		.14		.28			.42			(.15	)		15.13		2.85			13		.08	³		1.00	³

	Year ended July 31
	2015			2014			2013			2012			2011
Portfolio turnover rate for all share classes		23	%		24	%		25	%		20	%		18	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Not annualized.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	Class R-6 shares were offered beginning May 11, 2012.

See Notes to Financial Statements

72	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

			Income (loss) from investment operations¹
					Net gains
	Net asset				(losses) on						Dividends			Net asset							Ratio of			Ratio of
	value,		Net		securities (both			Total from			(from net			value,					Net assets,		expenses			net income
	beginning		investment		realized and			investment			investment			end		Total			end of period		to average			to average
Period ended	of period		income		unrealized)			operations			income)			of period		return^2,3			(in millions)		net assets			net assets
Class A:
7/31/2015	$	17.52	$	.60	$	.09		$	.69		$	(.59	)	$	17.62		3.98	%	$	1,386		.62	%		3.38	%
7/31/2014		16.72		.63		.80			1.43			(.63	)		17.52		8.72			1,265		.63			3.72
7/31/2013^4,5		17.54		.59		(.82	)		(.23	)		(.59	)		16.72		(1.45	)		1,250		.63	⁶		3.64	⁶
8/31/2012		16.32		.66		1.22			1.88			(.66	)		17.54		11.70			1,334		.63			3.89
8/31/2011		16.63		.65		(.31	)		.34			(.65	)		16.32		2.24			1,218		.64			4.08
8/31/2010		15.31		.64		1.32			1.96			(.64	)		16.63		13.07			1,442		.62			4.04
Class B:
7/31/2015		17.52		.47		.09			.56			(.46	)		17.62		3.22			1		1.35			2.65
7/31/2014		16.72		.51		.79			1.30			(.50	)		17.52		7.93			2		1.38			3.00
7/31/2013^4,5		17.54		.47		(.82	)		(.35	)		(.47	)		16.72		(2.12	)		3		1.37	⁶		2.90	⁶
8/31/2012		16.32		.53		1.22			1.75			(.53	)		17.54		10.89			5		1.37			3.17
8/31/2011		16.63		.53		(.31	)		.22			(.53	)		16.32		1.48			7		1.39			3.33
8/31/2010		15.31		.52		1.32			1.84			(.52	)		16.63		12.22			11		1.37			3.31
Class C:
7/31/2015		17.52		.46		.09			.55			(.45	)		17.62		3.16			78		1.40			2.59
7/31/2014		16.72		.50		.80			1.30			(.50	)		17.52		7.87			76		1.42			2.94
7/31/2013^4,5		17.54		.46		(.82	)		(.36	)		(.46	)		16.72		(2.16	)		87		1.42	⁶		2.85	⁶
8/31/2012		16.32		.52		1.22			1.74			(.52	)		17.54		10.83			101		1.42			3.10
8/31/2011		16.63		.52		(.31	)		.21			(.52	)		16.32		1.42			91		1.44			3.28
8/31/2010		15.31		.51		1.32			1.83			(.51	)		16.63		12.17			116		1.42			3.24
Class F-1:
7/31/2015		17.52		.58		.09			.67			(.57	)		17.62		3.85			63		.74			3.26
7/31/2014		16.72		.61		.80			1.41			(.61	)		17.52		8.59			65		.76			3.60
7/31/2013^4,5		17.54		.56		(.82	)		(.26	)		(.56	)		16.72		(1.58	)		74		.77	⁶		3.50	⁶
8/31/2012		16.32		.64		1.22			1.86			(.64	)		17.54		11.59			82		.73			3.79
8/31/2011		16.63		.64		(.31	)		.33			(.64	)		16.32		2.13			82		.74			3.98
8/31/2010		15.31		.63		1.32			1.95			(.63	)		16.63		12.97			108		.70			3.97
Class F-2:
7/31/2015		17.52		.62		.09			.71			(.61	)		17.62		4.10			134		.49			3.51
7/31/2014		16.72		.65		.80			1.45			(.65	)		17.52		8.85			110		.51			3.84
7/31/2013^4,5		17.54		.60		(.82	)		(.22	)		(.60	)		16.72		(1.35	)		91		.51	⁶		3.77	⁶
8/31/2012		16.32		.68		1.22			1.90			(.68	)		17.54		11.87			74		.48			4.02
8/31/2011		16.63		.67		(.31	)		.36			(.67	)		16.32		2.38			41		.50			4.22
8/31/2010		15.31		.67		1.32			1.99			(.67	)		16.63		13.27			46		.43			4.27

	Year ended					For the period	Year ended
	July 31					9/1/2012 to	August 31
	2015			2014		7/31/2013^3,4,5	2012			2011			2010
Portfolio turnover rate for all share classes		17	%		8%	12%		15	%		10	%		18	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	Not annualized.
⁴	In 2013, the fund changed its fiscal year-end from August to July.
⁵	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁶	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

American Funds Tax-Exempt Fund of New York

			Income (loss) from investment operations¹
					Net gains																Ratio of			Ratio of
	Net asset				(losses) on						Dividends								Net assets,		expenses to			expenses to			Ratio of
	value,		Net		securities (both			Total from			(from net			Net asset					end of		average net			average net			net income
	beginning		investment		realized and			investment			investment			value, end		Total			period		assets before			assets after			to average
Period ended	of period		income		unrealized)			operations			income)			of period		return^2,3,4			(in thousands)		reimbursements			reimbursements³			net assets³
Class A:
7/31/2015	$	10.58	$	.32	$	.07		$	.39		$	(.31	)	$	10.66		3.65	%	$	123,924		.72	%		.67	%		2.91	%
7/31/2014		10.21		.31		.37			.68			(.31	)		10.58		6.83			101,874		.73			.63			3.07
7/31/2013		10.85		.31		(.64	)		(.33	)		(.31	)		10.21		(3.16	)		99,811		.66			.59			2.88
7/31/2012		9.98		.32		.87			1.19			(.32	)		10.85		12.11			106,145		.76			.63			3.06
7/31/2011^5,6		10.00		.21		(.03	)		.18			(.20	)		9.98		1.83			62,229		.97	⁷		.67	⁷		2.82	⁷
Class B:
7/31/2015		10.58		.23		.07			.30			(.22	)		10.66		2.87			45		1.49			1.43			2.15
7/31/2014		10.21		.23		.37			.60			(.23	)		10.58		5.98			51		1.51			1.44			2.29
7/31/2013		10.85		.22		(.64	)		(.42	)		(.22	)		10.21		(4.00	)		174		1.53			1.46			1.99
7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85		11.18			271		1.59			1.45			2.24
7/31/2011^5,6		10.00		.15		(.03	)		.12			(.14	)		9.98		1.24			120		1.76	⁷		1.48	⁷		2.21	⁷
Class C:
7/31/2015		10.58		.23		.07			.30			(.22	)		10.66		2.79			9,706		1.56			1.50			2.07
7/31/2014		10.21		.22		.37			.59			(.22	)		10.58		5.89			7,809		1.60			1.51			2.19
7/31/2013		10.85		.21		(.64	)		(.43	)		(.21	)		10.21		(4.04	)		7,763		1.58			1.50			1.96
7/31/2012		9.98		.23		.87			1.10			(.23	)		10.85		11.12			6,875		1.62			1.50			2.17
7/31/2011^5,6		10.00		.15		(.03	)		.12			(.14	)		9.98		1.26			2,103		1.75	⁷		1.55	⁷		2.27	⁷
Class F-1:
7/31/2015		10.58		.31		.07			.38			(.30	)		10.66		3.58			1,624		.80			.74			2.83
7/31/2014		10.21		.31		.37			.68			(.31	)		10.58		6.77			1,072		.77			.68			3.03
7/31/2013		10.85		.29		(.64	)		(.35	)		(.29	)		10.21		(3.36	)		1,372		.86			.79			2.67
7/31/2012		9.98		.31		.87			1.18			(.31	)		10.85		11.95			2,392		.86			.74			2.94
7/31/2011^5,6		10.00		.20		(.03	)		.17			(.19	)		9.98		1.76			872		1.03	⁷		.78	⁷		2.71	⁷
Class F-2:
7/31/2015		10.58		.33		.07			.40			(.32	)		10.66		3.77			20,397		.61			.56			3.02
7/31/2014		10.21		.32		.37			.69			(.32	)		10.58		6.89			15,959		.66			.57			3.13
7/31/2013		10.85		.31		(.64	)		(.33	)		(.31	)		10.21		(3.14	)		14,378		.64			.57			2.90
7/31/2012		9.98		.33		.87			1.20			(.33	)		10.85		12.21			12,983		.63			.53			3.13
7/31/2011^5,6		10.00		.22		(.03	)		.19			(.21	)		9.98		1.92			3,162		.70	⁷		.55	⁷		3.08	⁷

													For the period
	Year ended July 31												11/1/2010 to
	2015			2014			2013			2012			7/31/2011^4,5,6
Portfolio turnover rate for all share classes		42	%		25	%		23	%		15	%		16%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain reimbursements from CRMC. During the periods shown, CRMC reduced fees for other fees and expenses.
⁴	Not annualized.
⁵	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁶	For the period November 1, 2010, commencement of operations, through July 31, 2011.
⁷	Annualized.

See Notes to Financial Statements

74	American Funds Tax-Exempt Funds

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York

In our opinion, the accompanying statements of assets and liabilities, including the the summary investment portfolios (investment portfolio for American Funds Tax-Exempt Fund of New York), and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the “Funds”) at July 31, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented (other than as noted below for The Tax-Exempt Fund of California), 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 Funds’ 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). Those standards require that we plan and perform the audit 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 July 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of The Tax-Exempt Fund of California as of July 31, 2013, and for the fiscal years ended through July 31, 2013 as appearing herein, were audited by other auditors whose report, dated September 9, 2013, expressed an unqualified opinion on those statements.

PricewaterhouseCoopers, LLP

Los Angeles, California
September 10, 2015

American Funds Tax-Exempt Funds

Expense example

unaudited

As a fund shareholder, 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 six-month period (February 1, 2015, through July 31, 2015).

Actual expenses:

The first line of each share class in the table on the following pages 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.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the following pages 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.

Notes:

Class F-1 and F-2 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table on the following pages 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.

76	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	996.50	$	2.87		.58	%
Class A – assumed 5% return		1,000.00		1,021.92		2.91		.58
Class F-1 – actual return		1,000.00		995.43		3.96		.80
Class F-1 – assumed 5% return		1,000.00		1,020.83		4.01		.80
Class F-2 – actual return		1,000.00		996.64		2.72		.55
Class F-2 – assumed 5% return		1,000.00		1,022.07		2.76		.55

Limited Term Tax-Exempt Bond Fund of America

	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	994.20	$	2.82		.57	%
Class A – assumed 5% return		1,000.00		1,021.97		2.86		.57
Class B – actual return		1,000.00		990.70		6.32		1.28
Class B – assumed 5% return		1,000.00		1,018.45		6.41		1.28
Class C – actual return		1,000.00		990.46		6.56		1.33
Class C – assumed 5% return		1,000.00		1,018.20		6.66		1.33
Class F-1 – actual return		1,000.00		993.71		3.26		.66
Class F-1 – assumed 5% return		1,000.00		1,021.52		3.31		.66
Class F-2 – actual return		1,000.00		994.89		2.08		.42
Class F-2 – assumed 5% return		1,000.00		1,022.71		2.11		.42
Class R-6 – actual return		1,000.00		995.48		1.53		.31
Class R-6 – assumed 5% return		1,000.00		1,023.26		1.56		.31

The Tax-Exempt Bond Fund of America

	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	991.62	$	2.67		.54	%
Class A – assumed 5% return		1,000.00		1,022.12		2.71		.54
Class B – actual return		1,000.00		987.99		6.31		1.28
Class B – assumed 5% return		1,000.00		1,018.45		6.41		1.28
Class C – actual return		1,000.00		987.75		6.55		1.33
Class C – assumed 5% return		1,000.00		1,018.20		6.66		1.33
Class F-1 – actual return		1,000.00		991.03		3.26		.66
Class F-1 – assumed 5% return		1,000.00		1,021.52		3.31		.66
Class F-2 – actual return		1,000.00		992.24		2.03		.41
Class F-2 – assumed 5% return		1,000.00		1,022.76		2.06		.41
Class R-6 – actual return		1,000.00		992.80		1.48		.30
Class R-6 – assumed 5% return		1,000.00		1,023.31		1.51		.30

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	994.35	$	3.21		.65	%
Class A – assumed 5% return		1,000.00		1,021.57		3.26		.65
Class B – actual return		1,000.00		990.88		6.71		1.36
Class B – assumed 5% return		1,000.00		1,018.05		6.80		1.36
Class C – actual return		1,000.00		990.59		7.01		1.42
Class C – assumed 5% return		1,000.00		1,017.75		7.10		1.42
Class F-1 – actual return		1,000.00		993.98		3.56		.72
Class F-1 – assumed 5% return		1,000.00		1,021.22		3.61		.72
Class F-2 – actual return		1,000.00		995.19		2.37		.48
Class F-2 – assumed 5% return		1,000.00		1,022.41		2.41		.48
Class R-6 – actual return		1,000.00		995.73		1.83		.37
Class R-6 – assumed 5% return		1,000.00		1,022.96		1.86		.37

The Tax-Exempt Fund of California
	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	993.56	$	3.02		.61	%
Class A – assumed 5% return		1,000.00		1,021.77		3.06		.61
Class B – actual return		1,000.00		989.94		6.61		1.34
Class B – assumed 5% return		1,000.00		1,018.15		6.71		1.34
Class C – actual return		1,000.00		989.68		6.91		1.40
Class C – assumed 5% return		1,000.00		1,017.85		7.00		1.40
Class F-1 – actual return		1,000.00		992.94		3.61		.73
Class F-1 – assumed 5% return		1,000.00		1,021.17		3.66		.73
Class F-2 – actual return		1,000.00		994.12		2.42		.49
Class F-2 – assumed 5% return		1,000.00		1,022.36		2.46		.49

American Funds Tax-Exempt Fund of New York
	Beginning		Ending
	account value		account value		Expenses paid		Annualized
	2/1/2015		7/31/2015		during period*		expense ratio
Class A – actual return	$	1,000.00	$	987.17	$	3.35		.68	%
Class A – assumed 5% return		1,000.00		1,021.42		3.41		.68
Class B – actual return		1,000.00		983.57		6.84		1.39
Class B – assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class C – actual return		1,000.00		983.17		7.33		1.49
Class C – assumed 5% return		1,000.00		1,017.41		7.45		1.49
Class F-1 – actual return		1,000.00		987.03		3.50		.71
Class F-1 – assumed 5% return		1,000.00		1,021.27		3.56		.71
Class F-2 – actual return		1,000.00		987.76		2.76		.56
Class F-2 – assumed 5% return		1,000.00		1,022.02		2.81		.56

*	The “expenses paid during period” 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, and divided by 365 (to reflect the one-half year period).

78	American Funds Tax-Exempt Funds

Tax information

unaudited

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The funds hereby designate the following amounts for the funds’ fiscal year ended July 31, 2015:

Fund	Exempt interest dividends
American Funds Short-Term Tax-Exempt Bond Fund		100	%
Limited Term Tax-Exempt Bond Fund of America		100
The Tax-Exempt Bond Fund of America		100
American High-Income Municipal Bond Fund		100
The Tax-Exempt Fund of California		100
American Funds Tax-Exempt Fund of New York		100

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2016, to determine the calendar year amounts to be included on their 2015 tax returns. Shareholders should consult their tax advisors.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement

American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America,

The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California, American Funds Tax-Exempt Fund of New York

The boards of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the “board”) have approved each fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) through April 30, 2016. The board approved the agreement following the recommendation of each fund’s Contracts Committee (the “committee”), which is composed of each fund’s independent board members. The board and the committee determined that each fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of each fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the funds under each fund’s agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of each fund in light of its objective. They compared each fund’s investment results with those of other relevant funds (including funds that form the basis of the Lipper index for the category in which the fund is included), and data such as relevant market and fund indexes, over various periods through September 30, 2014. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Short Municipal Debt Funds Average and the Barclays Municipal Short 1–5 Years Index. They noted that the investment results for the fund were above the results of the Lipper average over the nine-month, one-year, three-year, five-year and lifetime periods, while below those of the Barclays index for those periods.

Limited Term Tax-Exempt Bond Fund of America seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Intermediate Municipal Debt Funds Average and the Barclays Municipal Short-Intermediate 1–10 Years Index. They noted that the investment results for the fund were below the results of the Lipper average for the nine-month, one-year, three-year, five-year, 10-year and lifetime periods, and were below the results of the Barclays index for all periods shown other than the three-year and five-year periods.

80	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper General & Insured Municipal Debt Funds Average and the Barclays Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for the three-year, five-year, 10-year and lifetime periods (while below the results of the average for the nine-month and one-year periods), and were above the results of the Barclays index for all periods considered.

American High-Income Municipal Bond Fund seeks to provide a high level of current income exempt from regular federal income tax. The board and the committee reviewed the fund’s investment results measured against the Lipper High-Yield Municipal Debt Funds Average and the Barclays High Yield Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for the one-year, three-year, five-year, 10-year and lifetime periods (although below the results of the average for the nine-month period), while below the results of the Barclays index for all periods shown other than the nine-month period.

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper California Municipal Debt Funds Average and the Barclays California Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for the three-year, five-year, 10-year and lifetime periods (although below the results of the average for the nine-month and one-year periods), and were above the results of the Barclays index for all periods shown.

American Funds Tax-Exempt Fund of New York seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper New York Municipal Debt Funds Average and the Barclays New York Municipal Bond Index. They noted that the investment results for the fund were above the results of the Lipper average for the three-year and lifetime periods (although below the results of the average for the nine-month and one-year periods), while above those of the Barclays index for all periods considered.

The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit the funds and their shareholders.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that each fund’s advisory fees were below the median advisory fees of the other funds included in its Lipper category described above. They noted that while Limited Term Tax-Exempt Bond Fund of America’s total expenses were higher than the median of the other funds in the Lipper Intermediate Municipal Debt Funds category, such expenses less distribution expenses were below the median, and that the total expenses for each of the other funds were below the median of their respective categories. The board and the committee also considered the breakpoint discounts in each fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by each fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the funds.

4. Ancillary benefits

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with each fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting the potential benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the fund. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.

82	American Funds Tax-Exempt Funds

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in each fund’s advisory fee structure. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.

American Funds Tax-Exempt Funds

Boards of trustees and other officers

Independent trustees¹

Name and year of birth	Year first elected a trustee of the fund²		Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
William H. Baribault, 1945	STEX	2010	CEO and President, Richard Nixon Foundation; former Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	79	None
	LTEX	2010
	TEBF	2010
	AHIM	2010
	TEFCA	2010
	TEFNY	2010
James G. Ellis, 1947	STEX	2009	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	79	Mercury General
	LTEX	2006			Corporation
	TEBF	2006
	AHIM	2006
	TEFCA	2006
	TEFNY	2010
Leonard R. Fuller, 1946	STEX	1995	President and CEO, Fuller Consulting (financial management consulting firm)	79	None
	LTEX	1994
	TEBF	1994
	AHIM	1994
	TEFCA	1994
	TEFNY	2010
Mary Davis Holt, 1950	STEX	2015	Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003)	76	None
	LTEX	2015
	TEBF	2015
	AHIM	2015
	TEFCA	2015
	TEFNY	2015
R. Clark Hooper, 1946	STEX	2005	Private investor	81	The Swiss Helvetia
Chairman of the Boards	LTEX	2005			Fund, Inc.
(Independent and Non-	TEBF	2005
Executive)	AHIM	2005
	TEFCA	2005
	TEFNY	2010
Merit E. Janow, 1958	STEX	2010	Dean and Professor, Columbia University, School of International and Public Affairs	78	MasterCard Incorporated;
	LTEX	2010			The NASDAQ Stock
	TEBF	2010			Market LLC;
	AHIM	2010			Trimble Navigation
	TEFCA	2010			Limited
	TEFNY	2010
Laurel B. Mitchell, PhD,	STEX	2009	Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands	75	None
1955	LTEX	2010
	TEBF	2010
	AHIM	2010
	TEFCA	2009
	TEFNY	2010
Frank M. Sanchez, 1943	STEX	1999	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	75	None
	LTEX	1999
	TEBF	1999
	AHIM	1999
	TEFCA	1999
	TEFNY	2010

See page 86 for footnotes.

84	American Funds Tax-Exempt Funds

Independent trustees¹(continued)

Name and year of birth	Year first elected a trustee of the fund²		Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Margaret Spellings, 1957	STEX	2009	President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce	79	None
	LTEX	2010
	TEBF	2010
	AHIM	2010
	TEFCA	2010
	TEFNY	2010
Steadman Upham, PhD, 1949	STEX	2009	President and University Professor, The University of Tulsa	78	None
	LTEX	2007
	TEBF	2007
	AHIM	2007
	TEFCA	2007
	TEFNY	2010

Interested trustee^4,5


Name, year of birth and position with fund	Year first elected a trustee or officer of the fund²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Karl J. Zeile, 1966	STEX	2011	Director, Capital Research and Management Company; Partner — Capital Fixed Income Investors, Capital Research and Management Company	6	None
Vice Chairman of the Board:	LTEX	2004
STEX	TEBF	2009
Vice Chairman of the Board and President: AHIM, TEFNY Vice Chairman of the Board and Vice President: LTEX, TEBF, TEFCA	AHIM	2008
	TEFCA	2009
	TEFNY	2010

The funds’ statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the funds is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

STEX		American Funds Short-Term Tax-Exempt Bond Fund
LTEX		Limited Term Tax-Exempt Bond Fund of America
TEBF		The Tax-Exempt Bond Fund of America
AHIM		American High-Income Municipal Bond Fund
TEFCA		The Tax-Exempt Fund of California
TEFNY		American Funds Tax-Exempt Fund of New York

Other officers⁵

Name, year of birth and position with fund	Year first elected an officer of the fund²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund
Brenda S. Ellerin, 1963	STEX	2009	Partner — Capital Fixed Income Investors, Capital Research and Management Company
President: STEX, LTEX	LTEX	1997
Senior Vice President: TEBF	TEBF	1999
Neil L. Langberg, 1953	STEX	1989	Partner — Capital Fixed Income Investors, Capital Research and Management Company
President: TEBF, TEFCA	LTEX	1993
Senior Vice President: STEX,	TEBF	1985
LTEX, AHIM	AHIM	1994
	TEFCA	1986

American Funds Tax-Exempt Funds

Other officers⁵(continued)

Name, year of birth and position with fund	Year first elected an officer of the fund²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund
Kristine M. Nishiyama, 1970	STEX	2003	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President and General Counsel, Capital Bank and Trust Company⁶
Senior Vice President	LTEX	2003
	TEBF	2003
	AHIM	2003
	TEFCA	2003
	TEFNY	2010
Jerome H. Solomon, 1963	TEFNY	2011	Vice President — Capital Fixed Income Investors, Capital Research and Management Company
Vice President
Steven I. Koszalka, 1964	STEX	2010	Vice President — Fund Business Management Group, Capital Research and Management Company
Secretary	LTEX	2010
	TEBF	2010
	AHIM	2010
	TEFCA	2010
	TEFNY	2010
Brian C. Janssen, 1972	STEX	2015	Vice President — Investment Operations, Capital Research and Management Company
Treasurer	LTEX	2015
	TEBF	2012
	AHIM	2015
	TEFCA	2012
	TEFNY	2012
Jane Y. Chung, 1974	STEX	2014	Associate — Fund Business Management Group, Capital Research and Management Company
Assistant Secretary	LTEX	2014
	TEBF	2014
	AHIM	2014
	TEFCA	2014
	TEFNY	2014
Dori Laskin, 1951	STEX	2010	Vice President — Investment Operations, Capital Research and Management Company
Assistant Treasurer	LTEX	2010
	TEBF	2010
	AHIM	2010
	TEFCA	2010
	TEFNY	2010
Gregory F. Niland, 1971	STEX	2015	Vice President — Investment Operations, Capital Research and Management Company
Assistant Treasurer	LTEX	2015
	TEBF	2015
	AHIM	2015
	TEFCA	2015
	TEFNY	2015


¹	The term independent trustee refers to a trustee who is not an “interested person” of the funds within the meaning of the Investment Company Act of 1940.
²	Includes service as a director/trustee or officer of the fund’s predecessor, The Tax-Exempt Bond Fund of America, Inc. or American High-Income Municipal Bond Fund, Inc., each a Maryland corporation, or Limited Term Tax-Exempt Bond Fund of America or The Tax-Exempt Fund of California, each a Massachusetts business trust. Trustees and officers of the funds serve until their resignation, removal or retirement.
³	This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company.
⁴	The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their current or former affiliation with the funds’ investment adviser, Capital Research and Management Company, or affiliated entities (including the funds’ principal underwriter).
⁵	All of the directors/trustees and/or officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
⁶	Company affiliated with Capital Research and Management Company.

86	American Funds Tax-Exempt Funds

Offices of the funds and of the investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

6455 Irvine Center Drive
Irvine, CA 92618-4518

Transfer agent for shareholder accounts

American Funds Service Company
(Write to the address near you.)

P.O. Box 6007
Indianapolis, IN 46206-6007

P.O. Box 2280
Norfolk, VA 23501-2280

Counsel

Morgan, Lewis & Bockius LLP

355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106

Custodians of assets

Bank of New York Mellon
One Wall Street
New York, NY 10286

JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Independent registered public accounting firm

PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

American Funds Tax-Exempt Funds

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the funds’ prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.

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

Complete July 31, 2015, portfolios of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund and The Tax-Exempt Fund of California’s investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).

American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York 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. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after September 30, 2015, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

88	American Funds Tax-Exempt Funds

The American Funds Advantage

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital System^SM— has resulted in a superior long-term track record.

Aligned with investor success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.¹

The Capital System^SM

Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 54% of 10-year periods and 57% of 20-year periods.²Our fund management fees have been among the lowest in the industry.³

	¹	Portfolio manager experience as of December 31, 2014.
	²	Based on Class A share results for rolling periods through December 31, 2014. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used).
	³	On average, our management fees were in the lowest quintile 70% of the time, based on the 20-year period ended December 31, 2014, versus comparable Lipper categories, excluding funds of funds.

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 800/421-9225 or to the Secretary of the Registrant, 6455 Irvine Center Drive, Irvine, California 92618.

ITEM 3 – Audit Committee Financial Expert

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

ITEM 4 – Principal Accountant Fees and Services

Registrant:
	a) Audit Fees:
		2014	$50,000
		2015	$54,000

	b) Audit-Related Fees:
		2014	None
		2015	None
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.

	c) Tax Fees:
		2014	$14,000
		2015	None

		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns including returns relating to the Registrant’s investments in non-U.S. jurisdictions.

	d) All Other Fees:
		2014	None
		2015	None

Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a) Audit Fees:
		Not Applicable

	b) Audit-Related Fees:
		2014	None
		2015	None
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.

	c) Tax Fees:
		2014	$52,000
		2015	$29,000
		The tax fees consist of consulting services relating to the Registrant’s investments.

	d) All Other Fees:
		2014	$2,000
		2015	$2,000
		The other fees consist of subscription services related to an accounting research tool.

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

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $68,000 for fiscal year 2014 and $50,000 for fiscal year 2015. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 – Audit Committee of Listed Registrants

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

ITEM 6 – Schedule of Investments

Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.

(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

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

	AMERICAN FUNDS TAX-EXEMPT FUND OF NEW YORK

	By __/s/ Karl J. Zeile
	Karl J. Zeile, Vice Chairman, President and Principal Executive Officer

	Date: September 30, 2015

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/ Karl J. Zeile

Karl J. Zeile, Vice Chairman, President and

Principal Executive Officer

Date: September 30, 2015

By __/s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

Date: September 30, 2015