-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AIF5fgI/+Hib5SKY41gj70DI5AYFWePj+RgoFPPXy8/Oh1QGq+i6Yy/o9kZ+gdFu cJTEZAUGnYWtkjs4ttgrzg== 0000018109-03-000010.txt : 20031209 0000018109-03-000010.hdr.sgml : 20031209 20031209161641 ACCESSION NUMBER: 0000018109-03-000010 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031209 EFFECTIVENESS DATE: 20031209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH MANAGEMENT TRUST OF AMERICA CENTRAL INDEX KEY: 0000018109 IRS NUMBER: 956588339 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02380 FILM NUMBER: 031045078 BUSINESS ADDRESS: STREET 1: 333 S HOPE ST - 52ND FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 2134869200 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS MONEY RESERVES INC DATE OF NAME CHANGE: 19760307 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS INCOME SHARES INC DATE OF NAME CHANGE: 19741010 N-CSR 1 ncsrform.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR Certified Shareholder Report of Registered Management Investment Companies Investment Company Act File Number: 811- 2380 The Cash Management Trust of America (Exact Name of Registrant as specified in charter) 333 South Hope Street Los Angeles, California 90071 (Address of principal executive offices) Registrant's telephone number, including area code: (213) 486-9200 Date of fiscal year end: September 30, 2003 Date of reporting period: September 30, 2003 Julie F. Williams Capital Research and Management Company 333 South Hope Street Los Angeles, California 90071 (name and address of agent for service) Copies to: Robert E. Carlson, Esq. Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, California 90071 (Counsel for the Registrant) ITEM 1 - Reports to Stockholders [logo - American Funds(R)] The right choice for the long term(R) THE CASH MANAGEMENT TRUST OF AMERICA THE U.S. TREASURY MONEY FUND OF AMERICA THE TAX-EXEMPT MONEY FUND OF AMERICA Trading viewpoints-- A discussion with the funds' managers [photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at computer screen] Annual report for the year ended September 30, 2003 THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality short-term money market instruments. THE U.S. TREASURY MONEY FUND OF AMERICA(SM) seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality municipal securities with effective maturities of one year or less. These money market funds are three of the 29 American Funds, the nation's third-largest mutual fund family. For more than seven decades, Capital Research and Management Company,(SM) the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk. Contents Letter to shareholders 1 Special report: Trading viewpoints-- A discussion with the funds' managers 2 The Cash Management Trust of America investment portfolio 6 The U.S. Treasury Money Fund of America investment portfolio 21 The Tax-Exempt Money Fund of America investment portfolio 29 Trustees and officers 40 The American Funds family back cover
Fund results in this report were calculated for Class A shares unless otherwise indicated. Other share class results for The Cash Management Trust of America can be found on page 20. For the most current investment results, please refer to americanfunds.com. SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX For the months ended September 30, 1998-- September 30, 2003 [chart] [begin line chart] SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX For the months ended September 30, 1998 - September 30, 2003
Federal Tax-Exempt Cash Management U.S. Treasury Consumer Price Funds Rate Money Fund (2) Trust of America Money Fund Index (inflation) of America (3) Sep-98 5.25 4.69 4.99 4.35 1.49 Oct-98 5.00 4.15 4.74 3.81 1.49 Nov-98 4.75 4.04 4.49 3.72 1.55 Dec-98 4.75 4.27 4.73 3.89 1.61 Jan-99 4.75 3.62 4.47 3.80 1.67 Feb-99 4.75 3.62 4.34 3.83 1.61 Mar-99 4.75 3.73 4.23 3.83 1.73 Apr-99 4.75 4.12 4.26 3.75 2.28 May-99 4.75 4.15 4.34 3.82 2.09 Jun-99 5.00 4.23 4.35 3.79 1.96 Jul-99 5.00 4.10 4.57 4.00 2.14 Aug-99 5.25 4.30 4.75 4.24 2.26 Sep-99 5.25 4.72 4.61 4.32 2.63 Oct-99 5.25 4.66 4.95 4.11 2.56 Nov-99 5.50 4.92 5.00 4.49 2.62 Dec-99 5.50 5.57 5.32 4.47 2.68 Jan-00 5.50 4.41 5.37 4.58 2.74 Feb-00 5.75 4.41 5.20 4.48 3.22 Mar-00 6.00 4.76 5.46 5.08 3.76 Apr-00 6.00 5.67 5.48 5.07 3.07 May-00 6.50 5.77 5.65 5.05 3.19 Jun-00 6.50 6.16 6.06 5.20 3.73 Jul-00 6.50 5.72 5.99 5.21 3.66 Aug-00 6.50 5.88 6.04 5.60 3.41 Sep-00 6.50 6.24 6.06 5.64 3.45 Oct-00 6.50 5.80 6.11 5.44 3.45 Nov-00 6.50 6.19 5.97 5.36 3.45 Dec-00 6.50 6.01 5.94 5.12 3.39 Jan-01 5.50 4.82 5.39 5.15 3.73 Feb-01 5.50 4.22 5.01 4.71 3.53 Mar-01 5.00 4.74 4.67 4.37 2.92 Apr-01 4.50 4.97 4.24 3.65 3.27 May-01 4.00 4.54 3.67 3.42 3.62 Jun-01 3.75 4.10 3.28 3.17 3.25 Jul-01 3.75 3.65 3.19 2.89 2.72 Aug-01 3.50 3.34 3.09 2.96 2.72 Sep-01 3.00 3.06 2.71 2.59 2.65 Oct-01 2.50 2.70 1.98 2.05 2.13 Nov-01 2.00 2.33 1.65 1.60 1.90 Dec-01 1.75 1.94 1.33 1.25 1.55 Jan-02 1.75 1.43 1.17 1.13 1.14 Feb-02 1.75 1.40 1.14 1.10 1.14 Mar-02 1.75 1.32 1.17 1.14 1.48 Apr-02 1.75 1.78 1.25 1.16 1.64 May-02 1.75 1.81 1.26 1.12 1.18 Jun-02 1.75 1.53 1.13 1.09 1.07 Jul-02 1.75 1.37 1.16 1.06 1.46 Aug-02 1.75 1.32 1.15 1.13 1.80 Sep-02 1.75 1.55 1.15 1.10 1.51 Oct-02 1.75 1.61 1.21 1.08 2.03 Nov-02 1.25 1.43 1.00 0.87 2.20 Dec-02 1.25 1.10 0.78 0.71 2.38 Jan-03 1.25 0.84 0.77 0.59 2.60 Feb-03 1.25 0.84 0.89 0.58 2.98 Mar-03 1.25 0.65 0.99 0.58 3.02 Apr-03 1.25 0.93 0.85 0.57 2.22 May-03 1.25 0.93 0.88 0.55 2.06 Jun-03 1.00 0.96 0.68 0.46 2.11 Jul-03 1.00 0.67 0.84 0.42 2.11 Aug-03 1.00 0.54 1.05 0.38 2.16 Sep-03 1.00 0.67 1.06 0.42 2.32
[end line chart] (1) Equivalent to Securities and Exchange Commission yield. (2) Represents the fund's taxable equivalent yield calculated at the maximum effective 35.0% federal tax rate. (3) Because income paid by The U.S. Treasury Money Fund of America is exempt from state and local taxes in most states, the fund's taxable equivalent yield would be higher than the rates shown in the chart. FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENT RETURNS WILL VARY, SO YOU MAY LOSE MONEY. ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS. INVESTING FOR SHORT PERIODS MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER ENTITY. Income from The Tax-Exempt Money Fund of America may be subject to state or local income taxes and/or federal alternative minimum taxes. Certain other income may be taxable. FELLOW SHAREHOLDERS: When we reported to you one year ago, we were in the midst of an extremely difficult period for the U.S. economy and stock markets. While the situation has improved, the recovery has been less than robust. Unemployment, for example, still remains a concern. In response, many investors are continuing to seek out the comfort and relative stability of cash funds. During the 12 months ended September 30, historically low short-term interest rates limited returns for The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America. Nonetheless, the funds were able to protect shareholders from fluctuations in equity and bond markets. In this environment, inflation, as measured by the Consumer Price Index (CPI), totaled 2.32%; however, the core CPI (which excludes volatile food and energy prices and which many economists regard as a more reliable long-term measure of inflation) was only 1.20%. This is one of the rare periods in which it has exceeded the returns of the three money market funds. THE FUNDS' RESULTS THE CASH MANAGEMENT TRUST OF AMERICA produced an income return of 1.05% with dividends reinvested for the fiscal year ended September 30, 2003. THE U.S. TREASURY MONEY FUND OF AMERICA generated a 12-month income return of 0.63% including reinvested dividends. Because all of the fund's earnings are derived from investments in U.S. Treasury securities, the income paid by the fund is exempt from state and local taxes. THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return of 0.57%. This return is equivalent to a return of 0.88% for investors in the 35.0% federal tax bracket. A portion of this return may also be exempt from state and local taxes. AN AILING ECONOMY ON THE MEND At the start of the funds' fiscal year in October 2002, the stock market began to rally and the outlook for the economy improved. In November, to help bolster the economy, the Federal Reserve Board lowered short-term interest rates by half a point. By January 2003, the prospect of war in Iraq advanced, and hopes for an upturn in the economy diminished once more. Though the war itself was brief, concerns about the possibility of deflation persisted and in response, the Federal Reserve cut rates again on June 25 by one quarter of a point to 1.0% -- its lowest level in 45 years. Since 2000, when the federal funds rate stood at 6.5%, money market fund yields have trended lower. The present anemic rate level has had an impact on the returns of all cash funds. However, investors can take solace in the fact that the three American Funds money market funds have provided a positive return for the past three fiscal years -- a period marked by a 27.40% decline in Standard & Poor's 500 Composite Index. THE IMPORTANCE OF DIVERSIFICATION Looking ahead, the U.S. economy seems to be on track for recovery. However, the recent past drives home the importance of a balanced, diversified portfolio -- one that includes a position in a cash fund. Our special report on page 2, "Trading viewpoints -- A discussion with the funds' managers," provides a look at how the funds' counselors steadfastly seek out the best options for shareholders and how your money market funds can play a vital role in your investment portfolio. We wish to welcome the many new shareholders who have joined us over the past year. Since September 2002, the number of shareholder accounts in the three funds grew to 499,000 from 411,000. We appreciate the confidence you have placed in us and look forward to helping you meet your long-term financial goals. Cordially, /s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine Paul G. Haaga, Jr. Abner D. Goldstine Chairman of the Boards President November 10, 2003 Your funds' seven-day yields as of September 30, 2003 The Cash Management Trust of America +1.06% The U.S. Treasury Money Fund of America +0.42% The Tax-Exempt Money Fund of America +0.41% The Tax-Exempt Money Fund of America (taxable equivalent yield)* +0.63%
*Represents the fund's taxable equivalent yield calculated at the maximum effective 35.0% federal tax rate. [Begin Sidebar] As reported in the press, instances of excessive short-term trading and illegal "late trading" (trading after 4 p.m. Eastern time) have been discovered at a number of different fund companies. In several of those cases, fund personnel engaged in or permitted these activities in clear violation of regulatory requirements and strict internal policies. This sort of conduct is unethical and detrimental to long-term shareholders. We will not tolerate it at American Funds. Although it is often difficult to detect and prevent abusive trading practices, we are committed to taking action to combat this harmful activity wherever we find it. [End Sidebar] TRADING VIEWPOINTS-- A discussion with the funds' managers [photo of Terry S. Cook, Belinda A. Heard and Karen Hall discussing paperwork Terry S. Cook is holding] The American Funds cash funds comprise hundreds of short-term securities. Because the holdings all mature within weeks or months, there is a constant need to replace maturing obligations. Given the funds' goals of stability and safety, investing these assets starts with solid credit research and requires great diligence and attention to details. Terry Cook, Belinda Heard and Karen Hall together invest the holdings in The Cash Management Trust of America and The U.S. Treasury Money Fund of America. (A separate team that specializes in municipal debt handles The Tax-Exempt Money Fund of America.) Every day, these women negotiate the fast-paced market of cash instruments, bringing to this task years of investment experience and the expertise of a dedicated group of research analysts. We invite you to hear from Terry, Belinda and Karen and learn about the market they monitor and the responsibilities they undertake on behalf of shareholders. Q: HOW DO YOU VIEW YOUR PRIMARY RESPONSIBILITIES? BELINDA: We focus on the taxable debt markets. A large portion of the debt we manage matures in 90 days or less. In the investment world, that's a relatively narrow window. Corporations issue commercial paper when they have an immediate need for funds, so time is of the essence. TERRY: In addition, investor demand for paper is particularly strong, so it gives us some advantage when we are able to respond quickly. KAREN: This is especially important with interest rates so low; when every increment of yield matters to our shareholders. Getting the best deals for the funds often requires a quick response. Q: WHAT ARE SOME OF THE THINGS YOU MONITOR WHEN INVESTING THE FUNDS? TERRY: To begin with, our research analysts cull through the issuers of commercial paper to recommend those that are, in their minds, very safe and secure. All of the commercial paper that they recommend is Tier-1 rated, which is of extremely high quality. This helps to limit risks in the portfolio. We meet regularly with analysts to review portfolio holdings and discuss specific credit events. KAREN: We can also buy other types of highly rated short-term debt securities -- including the most secure -- U.S. Treasury bills. Quality is paramount when it comes to protecting our shareholders. TERRY: We actively monitor the cycles of maturing debt in each fund and the current yields being offered in the market to find the best available investments. On a given day, we collectively handle anywhere from $200 million to $300 million for the two funds. We make sure each of the funds is diversified among various industries and by maturities. We also evaluate the potential for liquidity, in case we need to sell paper before it matures. BELINDA: Because we are traders, we are in constant contact with brokers who assist us by providing a broader picture of the market and liquidity, if the need arises. These contacts are also helpful in gaining access to new commercial paper programs. This is especially valuable when demand for an issue is strong or the supply of paper is limited. Q: SINCE 2002, THE AMOUNT OF AVAILABLE TOP-TIER CORPORATE COMMERCIAL PAPER HAS DIMINISHED. WHY IS THAT? TERRY: Many companies have elected to raise money by issuing longer term debt -- bonds that mature in years instead of months. The corporate commercial paper market has recently shrunk to about $1.1 trillion, down from about $1.4 trillion in December 2000. It's at its lowest level in several years. KAREN: Low interest rates are essentially the cause. In the current interest rate environment, corporations can raise money at historically low rates for longer periods of time. For the time being, it creates a bigger challenge for us as we search for suitable issues for the funds. However, this won't be the situation forever. Eventually, the supply of commercial paper is likely to increase. [Begin Sidebar] Dedicated, experienced management [photograph: Terry S. Cook] [Begin Photo Caption] Terry S. Cook 21 years experience at Capital Research and Management 25 years of investment experience [End Photo Caption] [photograph: Belinda A. Heard] [Begin Photo Caption] Belinda A. Heard 7 years experience at Capital Research and Management 12 years of investment experience [End Photo Caption] [photograph: Karen Hall] [Begin Photo Caption] Karen Hall 15 years experience at Capital Research and Management 16 years of investment experience [End Photo Caption] [End Sidebar] Q: WHAT OTHER SIGNIFICANT CHANGES IN THE MARKET HAVE YOU OBSERVED IN THE PAST YEAR? BELINDA: This low interest rate environment has naturally resulted in reduced returns for all cash funds. It has become increasingly difficult to find attractive yields on any short-term investments -- without taking on more risk, which we choose not to do. TERRY: During the past year, Capital Research voluntarily agreed to absorb a portion of the fees and expenses associated with certain share classes of the funds in an effort to help maintain at least a positive return to the shareholders. Q: DO CASH FUNDS STILL HAVE VALUE FOR INVESTORS IN THIS LOW RATE ENVIRONMENT? TERRY: Our funds still provide a valuable function for shareholders. One important advantage to remember is the liquidity or immediate cash access that these funds provide. In the event that you need cash on short notice, it will be there. In the meantime, it earns a money market rate of return. Over longer periods of time, the funds can serve as a depository for money that is intended for a periodic investment plan, as well. KAREN: The American Funds cash funds are more stable than equity or bond funds. They are a key element in a well-diversified portfolio, a vehicle for preserving a portion of capital. Although returns are not guaranteed, we have been able to provide some level of interest income for our shareholders for every year over the lifetime of each fund. BELINDA: I would add that shareholders benefit from the experience and dedication that goes into the management of these funds. The American Funds money market funds are as actively managed as an equity or bond fund. We recognize the value of every dollar that comes into the fund and we strive to preserve that value even under the most challenging market conditions. [photo of photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at computer screen] [Begin Sidebar] USE YOUR AMERICAN FUNDS MONEY MARKET FUND: AS A FLEXIBLE CASH RESERVE "Let's say a couple is shopping for a home and needs to have money ready for a down payment once they find something they like. If they put their savings into The Cash Management Trust of America, their money will be ready when they need it and can earn interest in the meantime. They can also write checks on the account when needed." - --TERRY S. COOK TO PRESERVE CAPITAL "After the past few years, many investors have learned the importance of having a portion of their portfolio in cash. Holdings of cash funds that can outpace the rate of inflation over the long-term are a tremendous advantage. Unlike a savings or checking account, the American Funds money market funds are actively managed, and by placing a portion of your assets in one of our funds, you can preserve your capital while also earning income." -- BELINDA A. HEARD AS A SHELTER IN VOLATILE MARKETS "Investors can ride out market volatility by using the funds to accumulate cash they plan to invest at a later date. Because of the stability they can provide, the funds are frequently used for this purpose. Investors can take this even further by using the funds as a holding place for regularly scheduled investments or payments." -- KAREN HALL [End Sidebar] [Begin Sidebar] WHO MANAGES THE TAX-EXEMPT MONEY FUND OF AMERICA? Like all of the American Funds, The Tax-Exempt Money Fund of America is managed by a group of dedicated and experienced investment professionals. With over 66 years of combined experience, the fund's portfolio counselors are well suited to their task. [begin pie chart] o Katie Saunders 4 years o Tanya M. Muncey 12 years o Susan J. Willander-McDermott 25 years o Neil Langberg 25 years [end pie chart] [End Sidebar] [Begin Sidebar] AMERICAN FUNDS MONEY MARKET FUNDS SERVICES EASY CHECK-WRITING You can write checks for $250 or more against your Class A share accounts in The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America. EASY INVESTING Once you've set up an account, you can make additional investments of $50 or more: o online at americanfunds.com and by phone once you enroll in American FundsLink o by mail o through an automatic dollar cost averaging program. EXCHANGE PRIVILEGES American Funds offers a full range of funds to suit your investing objectives. You may make exchanges among virtually all of these funds as your needs or goals change.* You can also automatically exchange shares in amounts of $50 or more through an automatic exchange plan or have dividends cross reinvested into another fund. EASY WITHDRAWING You can withdraw money from your account at any time: o online at americanfunds.com and by phone once you enroll in American FundsLink o by mail o through an automatic withdrawal plan through which withdrawals and or dividend payments can be sent to you, your bank or someone of your choosing. *In some cases, a sales charge may apply; contact your financial adviser for details. [End Sidebar] The Cash Management Trust of America Investment portfolio September 30, 2003 Principal Market Yield at amount value acquisition (000) (000) CERTIFICATES OF DEPOSIT - 2.58% ING Bank NV October 14, 2003 1.05% $ 25,000 $25,000 State Street Bank & Trust October 14, 2003 1.02 50,000 49,999 Wells Fargo Bank, NA October 15, 2003 1.06 50,000 50,000 November 4, 2003 1.06 50,000 49,999 November 14, 2003 1.06 50,000 49,999 Total certificates of deposit 224,997 COMMERCIAL PAPER - 72.49% 3M Co. October 30, 2003 1.00 25,000 24,979 Abbey National North America LLC November 24, 2003 1.01 50,000 49,920 December 8, 2003 1.01 50,000 49,898 Abbott Laboratories Inc. (1) October 28, 2003 1.01 40,000 39,969 ABN AMRO North America Finance Inc. October 10, 2003 1.03 50,000 49,986 November 3, 2003 1.05 50,000 49,949 AIG Funding Inc. November 3, 2003 1.04 25,000 24,975 November 7, 2003 1.04 50,000 49,944 Alcon Capital Corp. (1) October 27, 2003 1.02 25,000 24,981 American Express Credit Corp. October 20, 2003 1.04 70,000 69,960 October 22, 2003 1.04 50,000 49,968 American General Finance Corp. November 3, 2003 1.05 24,000 23,976 American Honda Finance Corp. October 22, 2003 1.05 33,700 33,678 October 27, 2003 1.04 31,000 30,977 November 5, 2003 1.05 42,000 41,955 November 12, 2003 1.03 18,300 18,277 Anheuser-Busch Cos. Inc. (1) October 30, 2003 1.00 25,000 24,979 ANZ (Delaware) Inc. October 20, 2003 1.03 50,000 49,971 November 25, 2003 1.05 50,000 49,918 Asset Securitization Cooperative Corp. (1) October 8, 2003 1.05 55,000 54,987 October 16, 2003 1.06 50,000 49,976 November 13, 2003 1.06 45,000 44,942 Aventis S.A. (1) October 9, 2003 1.06 25,000 24,993 November 25, 2003 1.04 25,000 24,960 Bank of Ireland (1) October 20, 2003 1.06 25,000 24,985 November 10, 2003 1.06 50,000 49,940 November 24, 2003 1.06 50,000 49,919 Bank of Nova Scotia December 2, 2003 1.03 50,000 49,910 Barclays U.S. Funding Corp. October 6, 2003 1.03 50,000 49,991 October 14, 2003 1.03 50,000 49,979 BellSouth Corp. (1) October 8, 2003 1.01 35,000 34,992 October 9, 2003 1.01 50,000 49,987 BMW U.S. Capital Corp. October 22, 2003 1.03 50,000 49,969 BNP Paribas Finance Inc. October 14, 2003 1.03 25,000 24,990 October 27, 2003 1.05 25,000 24,980 November 25, 2003 1.03 50,000 49,917 BP Capital Markets PLC November 14, 2003 1.02 70,000 69,907 CAFCO, LLC (1) October 1, 2003 1.02 30,000 29,999 November 13, 2003 1.05 25,000 24,968 November 18, 2003 1.06 45,000 44,935 Canadian Wheat Board October 8, 2003 1.00 50,010 49,999 November 24, 2003 0.97 20,000 19,968 CBA (Delaware) Finance Inc. October 15, 2003 1.06 25,000 24,989 CDC Commercial Paper Corp. (1) October 29, 2003 1.04 75,000 74,937 ChevronTexaco Funding Corp. October 1, 2003 1.02 100,000 99,997 CIESCO LLC October 23, 2003 1.06 50,000 49,966 Clorox Co. October 7, 2003 1.01 30,000 29,994 October 23, 2003 1.01 15,000 14,990 Coca-Cola Co. October 10, 2003 1.02 40,000 39,988 October 17, 2003 1.01 14,000 13,993 October 20, 2003 1.02 30,400 30,382 October 22, 2003 1.02 61,600 61,561 Credit Lyonnais N.A. Inc. October 3, 2003 1.06 80,200 80,193 October 6, 2003 1.03 50,000 49,991 November 3, 2003 1.05 19,800 19,780 Danske Corp. October 7, 2003 1.05 25,000 24,995 October 22, 2003 1.05 50,000 49,968 November 5, 2003 1.06 50,000 49,946 Dexia Delaware LLC October 3, 2003 1.04 25,000 24,998 October 24, 2003 1.06 50,000 49,965 December 1, 2003 1.06 50,000 49,907 Diageo Capital PLC (1) October 3, 2003 1.02 45,300 45,296 DuPont (E.I.) de Nemours & Co. October 17, 2003 1.04 25,000 24,988 October 20, 2003 1.03 35,000 34,980 October 24, 2003 1.03 50,000 49,965 November 4, 2003 1.04 25,000 24,974 Edison Asset Securitization LLC (1) October 10, 2003 1.05 20,000 19,994 October 24, 2003 1.04 40,000 39,972 November 12, 2003 1.06 90,000 89,885 Eksportfinans ASA (1) October 10, 2003 1.02 17,909 17,904 October 21, 2003 1.04 7,091 7,087 Electricite de France October 7, 2003 1.03 25,000 24,995 Export Development Canada October 27, 2003 0.97 30,000 29,978 Exxon Asset Management Co. (1) October 8, 2003 1.00 50,000 49,989 October 24, 2003 0.99 50,000 49,967 FCAR Owner Trust I November 12, 2003 1.06 50,000 49,937 Gannett Co. (1) October 10, 2003 1.02 85,000 84,976 October 17, 2003 1.01 40,000 39,981 Gaz de France October 6, 2003 1.03 25,000 24,996 Gillette Co. (1) October 17, 2003 0.99 40,000 39,981 GlaxoSmithKline Finance PLC October 16, 2003 1.03 50,000 49,977 November 25, 2003 1.02 30,000 29,951 Golden Peanut Co. LLC October 1, 2003 1.02 10,000 10,000 Harley-Davidson Funding Corp. (1) October 15, 2003 1.02 15,000 14,994 November 24, 2003 1.02 10,000 9,984 Harvard University November 14, 2003 1.01 40,000 39,948 HBOS Treasury Services PLC October 1, 2003 1.05 30,000 29,999 October 10, 2003 1.05 8,800 8,797 October 23, 2003 1.05 25,000 24,983 November 5, 2003 1.05 51,200 51,146 Hershey Foods Corp. (1) October 24, 2003 1.01 25,000 24,983 Household Finance Corp. October 31, 2003 1.03 50,000 49,956 HSBC USA Inc. October 15, 2003 1.04 25,000 24,989 IBM Credit Corp. October 14, 2003 1.00 50,000 49,981 ING (U.S.) Funding LLC October 17, 2003 1.04 25,000 24,987 October 21, 2003 1.04 25,000 24,984 Johnson & Johnson (1) November 14, 2003 1.02 23,400 23,370 KFW International Finance Inc. (1) October 8, 2003 1.01 30,000 29,993 October 15, 2003 1.02 25,000 24,989 November 4, 2003 1.03 45,000 44,955 Kimberly-Clark Worldwide Inc. (1) October 6, 2003 1.00 25,000 24,996 October 24, 2003 1.00 25,000 24,983 Medtronic Inc. (1) October 3, 2003 1.02 25,000 24,998 October 16, 2003 1.03 20,000 19,991 Merck & Co. Inc. October 6, 2003 1.01 22,000 21,996 October 28, 2003 1.02 21,000 20,983 November 13, 2003 1.02 50,000 49,938 Motiva Enterprises LLC October 6, 2003 1.00 25,000 24,996 Nestle Capital Corp. (1) October 21, 2003 1.03 25,000 24,985 October 27, 2003 1.03 40,000 39,969 NetJets Inc. (1) October 3, 2003 1.02 20,000 19,998 November 14, 2003 1.04 25,000 24,967 New Center Asset Trust October 8, 2003 1.06 25,000 24,994 November 17, 2003 1.05 40,000 39,942 Novartis Finance Corp. (1) October 8, 2003 1.01 25,000 24,994 Park Avenue Receivables Corp. (1) October 6, 2003 1.06 30,000 29,995 October 7, 2003 1.06 50,000 49,990 October 27, 2003 1.04 50,000 49,961 Pfizer Inc. (1) October 10, 2003 1.02 25,000 24,993 October 17, 2003 1.02 30,000 29,986 October 20, 2003 1.02 25,000 24,986 November 17, 2003 1.02 45,000 44,939 Preferred Receivables Funding Corp. (1) October 1, 2003 1.06 30,000 29,999 October 7, 2003 1.05 25,000 24,995 October 22, 2003 1.06 30,000 29,981 October 30, 2003 1.06 50,000 49,956 Private Export Funding Corp. (1) October 15, 2003 1.02 25,000 24,989 Procter & Gamble Co. (1) October 10, 2003 1.02 45,000 44,987 October 31, 2003 1.01 30,000 29,973 November 21, 2003 1.02 50,000 49,926 Rabobank USA Financial Corp. October 21, 2003 1.04 35,950 35,928 Receivables Capital Corp. (1) October 3, 2003 1.06 75,000 74,993 October 17, 2003 1.05 35,000 34,983 November 6, 2003 1.05 25,000 24,973 Rio Tinto (Commercial Paper) Ltd. (1) October 9, 2003 1.05 25,000 24,993 October 21, 2003 1.07 25,000 24,984 Royal Bank of Scotland PLC October 28, 2003 1.04 50,000 49,960 SBC International Inc. (1) October 21, 2003 1.03 75,000 74,955 Shell Finance (U.K.) PLC October 14, 2003 1.04 30,100 30,088 November 4, 2003 1.03 44,900 44,855 November 6, 2003 (1) 1.04 25,000 24,973 Siemens Capital Co. LLC November 3, 2003 1.01 25,000 24,976 Societe Generale N.A. Inc. October 10, 2003 1.03 50,000 49,986 October 15, 2003 1.03 50,000 49,978 Spintab AB (Swedmortgage) October 17, 2003 1.02 25,000 24,988 October 29, 2003 1.04 50,000 49,956 Stadshypotek Delaware Inc. (1) October 15, 2003 1.07 15,000 14,993 November 10, 2003 1.05 50,000 49,940 November 21, 2003 1.06 35,000 34,947 November 25, 2003 1.07 25,000 24,958 Target Corp. October 2, 2003 1.00 25,000 24,999 October 20, 2003 1.03 25,000 24,986 Toronto-Dominion Holdings USA Inc. October 17, 2003 1.04 25,000 24,988 November 3, 2003 1.03 50,000 49,952 Total Capital (1) October 7, 2003 1.05 50,000 49,990 Toyota Motor Credit Corp. (1) November 6, 2003 1.05 100,000 99,890 Triple-A One Funding Corp. (1) October 24, 2003 1.05 35,000 34,975 November 7, 2003 1.05 25,000 24,972 November 14, 2003 1.05 55,000 54,926 UBS Finance (Delaware) LLC November 10, 2003 1.04 50,000 49,941 November 24, 2003 1.04 50,000 49,921 United Parcel Service Inc. November 7, 2003 0.98 50,000 49,946 Verizon Network Funding Co. October 20, 2003 1.02 45,000 44,975 Wal-Mart Stores Inc. (1) October 29, 2003 1.01 40,000 39,967 November 18, 2003 1.00 35,000 34,951 Westpac Capital Corp. November 7, 2003 1.03 50,000 49,946 Yale University October 10, 2003 1.06 6,000 5,998 TOTAL COMMERCIAL PAPER 6,328,920 FEDERAL AGENCY DISCOUNT NOTES - 9.67% Fannie Mae October 22, 2003 1.02 50,000 49,969 Federal Farm Credit Banks October 9, 2003 0.98 50,000 49,988 October 16, 2003 0.98 50,000 49,978 November 14, 2003 0.98 25,000 24,969 Federal Home Loan Bank October 29, 2003 1.01 30,000 29,976 November 7, 2003 1.02 50,000 49,946 November 19, 2003 1.02 20,000 19,972 International Bank for Reconstruction and Development October 10, 2003 0.97 75,000 74,980 October 21, 2003 0.97 75,000 74,958 October 28, 2003 0.98 84,200 84,131 Sallie Mae October 8, 2003 0.99 50,000 49,989 October 14, 2003 0.99 50,000 49,981 October 27, 2003 1.00 35,000 34,974 Tenessee Valley Authority October 2, 2003 0.99 40,000 39,998 October 16, 2003 0.99 110,000 109,952 October 23, 2003 0.96 50,000 49,969 TOTAL FEDERAL AGENCY DISCOUNT NOTES 843,730 U.S. TREASURIES - 15.28% U.S. Treasury Bills October 2, 2003 0.89 300,000 299,986 October 9, 2003 0.92 225,000 224,951 October 16, 2003 0.93 160,000 159,939 October 23, 2003 0.94 175,000 174,901 October 30, 2003 0.91 100,000 99,927 November 6, 2003 0.96 125,000 124,892 November 13, 2003 0.93 50,000 49,947 November 20, 2003 0.91 100,000 99,879 November 28, 2003 0.93 50,000 49,932 December 4, 2003 0.90 50,000 49,923 TOTAL U.S. TREASURIES 1,334,277 TOTAL INVESTMENT SECURITIES (cost: $8,731,943,000) 8,731,924 OTHER ASSETS LESS LIABILITIES (1,343) NET ASSETS $8,730,581
(1) Restricted security that can be resold only to institutional investors. In practice, this security is as liquid as unrestricted securities in the portfolio. See Notes to Financial Statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES (dollars and shares in thousands, at September 30, 2003 except per-share amounts) ASSETS: Investment securities at market (cost: $8,731,943) $8,731,924 Cash 42,520 Receivables for: Sales of fund's shares $49,463 Interest 206 Reimbursement of expenses from investment adviser 1,799 51,468 Other Assets 4 8,825,916 LIABILITIES: Payables for: Repurchases of fund's shares 92,509 Dividends on fund's shares 179 Services provided by affiliates 2,574 Deferred Trustees' compensation 36 Other fees and expenses 37 95,335 NET ASSETS AT SEPTEMBER 30, 2003 $8,730,581 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $8,730,600 Net unrealized depreciation (19) NET ASSETS AT SEPTEMBER 30, 2003 $8,730,581
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES AUTHORIZED Net assets Shares outstanding Net asset value per share Class A $7,909,667 7,909,684 $1.00 Class B 172,925 172,925 1.00 Class C 88,720 88,720 1.00 Class F 7,342 7,342 1.00 Class 529-A 89,297 89,297 1.00 Class 529-B 1,082 1,082 1.00 Class 529-C 3,456 3,457 1.00 Class 529-E 4,614 4,614 1.00 Class 529-F 2,318 2,318 1.00 Class R-1 7,679 7,680 1.00 Class R-2 205,628 205,628 1.00 Class R-3 138,193 138,193 1.00 Class R-4 26,156 26,156 1.00 Class R-5 73,504 73,504 1.00
STATEMENT OF OPERATIONS for the year ended September 30, 2003 (dollars in thousands) INVESTMENT INCOME: Income: Interest $118,465 Fees and expenses: Investment advisory services $25,711 Distribution services 11,553 Transfer agent services 12,189 Administrative services 1,723 Reports to shareholders 310 Registration statement and prospectus 1,041 Postage, stationery and supplies 2,288 Trustees' compensation 65 Auditing and legal 65 Custodian 284 State and local taxes 79 Other 41 Total expenses before reimbursement 55,349 Reimbursement of expenses 28,732 26,617 Net investment income 91,848 NET UNREALIZED DEPRECIATION ON INVESTMENTS (4) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $91,844
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2003 2002 OPERATIONS: Net investment income $91,848 $95,932 Net unrealized (depreciation) appreciation on investments (4) 14 Net increase in net assets resulting from operations 91,844 95,946 DIVIDENDS PAID TO SHAREHOLDERS FROM NET INVESTMENT INCOME (91,828) (95,952) CAPITAL SHARE TRANSACTIONS 32,809 1,559,502 TOTAL INCREASE IN NET ASSETS 32,825 1,559,496 NET ASSETS: Beginning of year 8,697,756 7,138,260 End of year $8,730,581 $8,697,756
See Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Cash Management Trust of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality, short-term money market instruments. The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) are sponsored by the Commonwealth of Virginia and can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund's share classes are described below: - --------------------------------------------------------------------------------------------------------- Share class Initial sales charge Contingent deferred sales Conversion feature charge upon redemption - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Classes A and 529-A None None None - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Classes B and 529-B None Declines from 5% to zero Classes B and 529-B for redemptions within convert to classes A and six years of purchase 529-A, respectively, after eight years - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Class C None 1% for redemptions within Class C converts to Class F one year of purchase after 10 years - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Class 529-C None 1% for redemptions within None one year of purchase - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Class 529-E None None None - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Classes F and 529-F None None None - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Classes R-1, R-2, R-3, None None None R-4 and R-5 - ---------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2003, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2003, the cost of investment securities for federal income tax purposes was $8,731,943,000. As of September 30, 2003, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $212 Gross unrealized appreciation on investment securities 43 Gross unrealized depreciation on investment securities (62)
Distributions paid to shareholders from ordinary income were as follows (dollars in thousands): Year ended Year ended Share class(1) September 30, 2003 September 30, 2002 Class A $ 90,058 $ 95,143 Class B 252 312 Class C 127 102 Class F 67 50 Class 529-A 425 108 Class 529-B 1 -* Class 529-C 3 -* Class 529-E 7 2 Class 529-F 4 -* Class R-1 5 -* Class R-2 139 9 Class R-3 167 9 Class R-4 96 1 Class R-5 477 216 Total $ 91,828 $ 95,952
* Amount less than one thousand. (1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002. 3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES -The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.320% on the first $1 billion of daily net assets and decreasing to 0.270% on such assets in excess of $2 billion. For the year ended September 30, 2003, the investment advisory services fee was $25,711,000, which was equivalent to an annualized rate of 0.280% of average daily net assets. The Investment Advisory and Service Agreement also provides that CRMC will reimburse the fund's Class A shares to the extent that annual operating expenses exceed 25% of gross income. Expenses related to interest, taxes, brokerage commissions and extraordinary items are not subject to these limitations. Low income levels, caused by the decline in short-term interest rates, have resulted in expenses exceeding this limit. During the year ended September 30, 2003, these reimbursements totaled $26,971,000. It is likely that expenses will continue to be reimbursed while short-term interest rates remain low. The amount of reimbursement during any period will vary in accordance with the fund's gross income and expense levels. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. ------------------------------------------------ ----------------------------- ----------------------------- Share class Currently approved limits Plan limits ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class A 0.15% 0.15% ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class 529-A 0.15 0.50 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes B and 529-B 0.90 0.90 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes C, 529-C and R-1 1.00 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-2 0.75 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes 529-E and R-3 0.50 0.75 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes F, 529-F and R-4 0.25 0.50 ------------------------------------------------ ----------------------------- -----------------------------
All share classes may use a portion (0.15% for classes A, B, 529-A and 529-B shares and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than classes A and B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the start-up period for classes R-1, R-2, R-3 and R-4, CRMC has voluntarily agreed to pay a portion of these fees. For the year ended September 30, 2003, the total fees paid by CRMC were $309,000. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees in the accompanying financial statements, the Commonwealth of Virginia is not considered a related party. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the year ended September 30, 2003, were as follows (dollars in thousands): - --------------------------------------------------------------------------------------------------------------- Administrative services Distribution Transfer agent Share class services services ------------------------------------------------------------- Commonwealth of CRMC Transfer agent Virginia administrative services administrative services services - --------------------------------------------------------------------------------------------------------------- Class A $7,144 $11,899 Not applicable Not applicable Not applicable - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class B 1,702 290 Not applicable Not applicable Not applicable - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class C 1,034 Included $155 $80 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class F 29 Included 18 3 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class 529-A 12 Included 105 23 $ 70 in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class 529-B 9 Included 1 -* 1 in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class 529-C 26 Included 4 1 3 in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class 529-E 19 Included 6 1 4 in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class 529-F 3 Included 2 -* 1 in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class R-1 49 Included 7 8 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class R-2 986 Included 197 638 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class R-3 491 Included 147 148 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class R-4 49 Included 30 5 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Class R-5 Not applicable Included 57 8 Not applicable in administrative services - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Total $11,553 $12,189 $729 $915 $79 - ----------------===============================================================================================
*Amount less than one thousand. Due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. For the year ended September 30, 2003, the total fees paid by CRMC for classes B, C, 529-B, 529-C, 529-E, R-1, R-2 and R-3 were $1,452,000. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Year ended September 30, 2003 Share class(1) Sales(2) Reinvestments of dividends Amount Shares Amount Shares Class A $ 15,232,335 15,232,335 $ 86,266 86,266 Class B 233,546 233,546 232 232 Class C 470,206 470,206 112 112 Class F 130,042 130,042 36 36 Class 529-A 115,515 115,515 416 416 Class 529-B 1,235 1,235 1 1 Class 529-C 4,360 4,360 3 3 Class 529-E 5,577 5,577 6 6 Class 529-F 3,376 3,376 4 4 Class R-1 17,203 17,203 5 5 Class R-2 852,833 852,833 124 124 Class R-3 567,375 567,375 155 155 Class R-4 62,875 62,875 92 92 Class R-5 116,674 116,674 447 447 Total net increase (decrease) $ 17,813,152 17,813,152 $ 87,899 87,899 Year ended September 30, 2002 Class A $ 17,401,893 17,401,893 $ 89,814 89,814 Class B 201,666 201,666 280 280 Class C 353,232 353,232 83 83 Class F 52,594 52,594 26 26 Class 529-A 47,559 47,559 105 105 Class 529-B 374 374 -* -* Class 529-C 1,034 1,034 1 1 Class 529-E 1,560 1,560 2 2 Class 529-F 1 1 -* -* Class R-1 1,864 1,864 -* -* Class R-2 57,697 57,697 7 7 Class R-3 23,460 23,460 7 7 Class R-4 674 674 1 1 Class R-5 60,080 60,080 209 209 Total net increase (decrease) $ 18,203,688 18,203,688 $ 90,535 90,535 Year ended September 30, 2003 Share class(1) Repurchases(2) Net (decrease) increase Amount Shares Amount Shares Class A $ (15,714,246) (15,714,246) $ (395,645) (395,645) Class B (218,968) (218,968) 14,810 14,810 Class C (481,173) (481,173) (10,855) (10,855) Class F (133,112) (133,112) (3,034) (3,034) Class 529-A (60,929) (60,929) 55,002 55,002 Class 529-B (517) (517) 719 719 Class 529-C (1,894) (1,894) 2,469 2,469 Class 529-E (2,336) (2,336) 3,247 3,247 Class 529-F (1,063) (1,063) 2,317 2,317 Class R-1 (10,483) (10,483) 6,725 6,725 Class R-2 (669,787) (669,787) 183,170 183,170 Class R-3 (444,141) (444,141) 123,389 123,389 Class R-4 (37,312) (37,312) 25,655 25,655 Class R-5 (92,281) (92,281) 24,840 24,840 Total net increase (decrease) $ (17,868,242) (17,868,242) $ 32,809 32,809 Year ended September 30, 2002 Class A $ (16,261,629) (16,261,629) $ 1,230,078 1,230,078 Class B (90,127) (90,127) 111,819 111,819 Class C (267,076) (267,076) 86,239 86,239 Class F (45,650) (45,650) 6,970 6,970 Class 529-A (13,369) (13,369) 34,295 34,295 Class 529-B (11) (11) 363 363 Class 529-C (47) (47) 988 988 Class 529-E (195) (195) 1,367 1,367 Class 529-F - - 1 1 Class R-1 (909) (909) 955 955 Class R-2 (35,246) (35,246) 22,458 22,458 Class R-3 (8,663) (8,663) 14,804 14,804 Class R-4 (174) (174) 501 501 Class R-5 (11,625) (11,625) 48,664 48,664 Total net increase (decrease) $ (16,734,721) (16,734,721) $ 1,559,502 1,559,502 * Amount less than one thousand. (1) Class 529-A, 529-B, 529-C, 529-E and 529-F shares were offered beginning February 15, 2002. Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002. (2) Includes exchanges between share classes of the fund.
5. RESTRICTED SECURITIES The fund has invested in certain securities for which resale may be limited to qualified buyers or which are otherwise restricted. These securities are identified in the investment portfolio. As of September 30, 2003, the total value of restricted securities was $2,851,649,000, which represented 32.66% of the net assets of the fund. 6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2003, the custodian fee of $284,000 included $43,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends Net assets, Ratio of Ratio of value, Net from net Net asset end of expenses net income beginning investment investment value, end Total period (in to average to average of period income(2) income of period return(4) millions) net assets net assets Class A: Year ended 9/30/2003 $1.00 $.011 $(.011) $1.00 1.05% $7,910 .23% (6) 1.05% Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.35 8,305 .59 1.33 Year ended 9/30/2001 1.00 .045 (.045) 1.00 4.63 7,075 .59 4.48 Year ended 9/30/2000 1.00 .055 (.055) 1.00 5.66 5,417 .61 5.53 Year ended 9/30/1999 1.00 .045 (.045) 1.00 4.59 5,863 .58 4.52 Class B: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .13 173 1.14 (7) .14 Year ended 9/30/2002 1.00 .005 (.005) 1.00 .53 158 1.40 (7) .47 Year ended 9/30/2001 1.00 .037 (.037) 1.00 3.75 46 1.41 3.01 Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00 2.73 1 1.43 (8) 5.21 (8) Class C: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 89 1.16 (7) .12 Year ended 9/30/2002 1.00 .004 (.004) 1.00 .40 100 1.51 (7) .31 Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00 1.40 13 1.55 (8) 2.05 (8) Class F: Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 7 .73 .58 Year ended 9/30/2002 1.00 .011 (.011) 1.00 1.13 10 .77 1.11 Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00 1.71 4 .80 (8) 3.09 (8) Class 529-A: Year ended 9/30/2003 1.00 .007 (.007) 1.00 .66 89 .62 .61 Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00 .73 34 .60 (8) 1.16 (8) Class 529-B: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 1 1.13 (7) .12 Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .09 - (5) .47 (7) .08 Class 529-C: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 3 1.11 (7) .11 Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .15 1 .75 (7) .12 Class 529-E: Year ended 9/30/2003 1.00 .002 (.002) 1.00 .22 5 1.05 (7) .17 Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00 .39 1 1.09 (8) .66 (8) Class 529-F: Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43 2 .85 .33 Period from 9/16/2002 to 9/30/2002 1.00 - (3) - (3) 1.00 .04 - (5) .03 .04 Class R-1: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 8 1.08 (7) .10 Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .10 1 .51 (7) .09 Class R-2: Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 206 1.08 (7) .11 Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11 23 .52 (7) .11 Class R-3: Year ended 9/30/2003 1.00 .002 (.002) 1.00 .23 138 1.03 (7) .17 Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .22 15 .34 (7) .22 Class R-4: Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 26 .72 (7) .48 Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .23 1 .19 (7) .27 Class R-5: Year ended 9/30/2003 1.00 .009 (.009) 1.00 .87 74 .41 .84 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .50 49 .16 .50 (1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) Amount less than $.001. (4) Total returns exclude all contingent deferred sales charges. (5) Amount less than 1 million. (6) Had CRMC not reimbursed expenses as described in the Notes to the Financial Statements, the expense ratio would have been .55%. (7) During the start-up period for this class, CRMC voluntarily agreed to pay a portion of the fees relating to transfer agent services. Had CRMC not paid such fees, expense ratio percentage points would have been higher by .11 for Class R-1, .22 for Class R-2 and .02 for Class R-3 during the year ended September 30, 2003 and higher by .20 for Class R-1, .05 for Class R-2, .03 for Class R-3 and .11 for Class R-4 during the period ended September 30, 2002. The expense ratio for Class R-4 was not affected by any payments made by CRMC during the period ended September 30, 2003. In addition, due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. Had CRMC not paid such fees and expenses, expense ratio percentage points would have been higher by .24 for Class B, .39 for Class C, .39 for Class 529-B, .51 for Class 529-C, .06 for Class 529-E, .42 for Class R-1, .38 for Class R-2 and .05 for Class R-3 during the year ended September 30, 2003, and .higher by .04 for classes C and 529-C for the period ended September 30, 2002. The expense ratios for classes B, 529-B and R-1 were not affected by any payments made by CRMC during the period ended September 30, 2002. (8) Annualized.
REPORT OF INDEPENDENT AUDITORS TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE CASH MANAGEMENT TRUST OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Cash Management Trust of America (the "Fund") at September 30, 2003, and the results of its operations, the changes in its net assets and its financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at September 30, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Los Angeles, California October 31, 2003 TAX INFORMATION (UNAUDITED) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. Certain states may exempt from income taxation that portion of the dividends paid from net investment income that was derived from direct U.S. government obligations. For purposes of computing this exclusion, 14.4% of the dividends paid by the fund from net investment income were derived from interest on direct U.S. government obligations. Dividends and distributions received by retirement plans such as IRAs, Keogh-type plans and 403(b) plans need not be reported as taxable income. However, many retirement plan trusts may need this information for their annual information reporting. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. OTHER SHARE CLASS RESULTS (unaudited) CLASS B, CLASS C, CLASS F AND CLASS 529 Returns for periods ended September 30, 2003: 1 year Life of class CLASS B SHARES Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%, payable only if shares are sold within six years of purchase -4.87% +1.19%(1) Not reflecting CDSC +0.13% +2.00%(1) CLASS C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase -0.88% +0.75%(2) Not reflecting CDSC +0.12% +0.75%(2) CLASS F SHARES(3) Not reflecting annual asset-based fee charged by sponsoring firm +0.55% +1.35%(4) CLASS 529-A SHARES +0.66% +0.86%(5) CLASS 529-B SHARES Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase -4.88% -2.89%(6) Not reflecting CDSC +0.12% +0.16%(6) CLASS 529-C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase -0.88% +0.18%(7) Not reflecting CDSC +0.12% +0.18%(7) CLASS 529-E SHARES(3) +0.22% +0.39%(8) CLASS 529-F SHARES(3) Not reflecting annual asset-based fee charged by sponsoring firm +0.43% +0.46%(9) (1) Average annual total return from March 15, 2000, when Class B shares were first sold. (2) Average annual total return from March 16, 2001, when Class C shares were first sold. (3) These shares are sold without any initial or contingent deferred sales charge. (4) Average annual total return from March 26, 2001, when Class F shares were first sold. (5) Average annual total return from February 15, 2002, when Class 529-A shares were first sold. (6) Average annual total return from June 7, 2002, when Class 529-B shares were first sold. (7) Average annual total return from April 2, 2002, when Class 529-C shares were first sold. (8) Average annual total return from March 11, 2002, when Class 529-E shares were first sold. (9) Average annual total return from September 16, 2002, when Class 529-F shares were first sold.
THE U.S. TREASURY MONEY FUND OF AMERICA INVESTMENT PORTFOLIO September 30, 2003 Principal Market Yield at amount value U.S. TREASURIES - 100.32% acquisition (000) (000) U.S. Treasury Bills 10-2-03 0.81%-0.97% $86,715 $86,711 U.S. Treasury Bills 10-9-03 0.88%-0.93% 94,985 94,964 U.S. Treasury Bills 10-16-03 0.89%-0.90% 68,790 68,764 U.S. Treasury Bills 10-23-03 0.87%-0.92% 85,951 85,904 U.S. Treasury Bills 10-30-03 0.91%-0.97% 43,085 43,053 U.S. Treasury Bills 11-6-03 0.89%-0.95% 96,580 96,495 U.S. Treasury Bills 11-13-03 0.93%-0.97% 70,861 70,788 U.S. Treasury Bills 11-20-03 0.99%-1.00% 40,220 40,171 U.S. Treasury Bills 12-4-03 0.89%-0.94% 78,055 77,935 U.S. Treasury Bills 12-11-03 0.89% 856 854 TOTAL INVESTMENT SECURITIES (cost: $665,610,000) 665,639 Other assets less liabilities (2,125) NET ASSETS $663,514 See Notes to Financial Statements
FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES at September 30, 2003 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market (cost: $665,610) $665,639 Cash 621 Receivables for sales of fund's shares 4,078 670,338 LIABILITIES: Payables for: Repurchases of fund's shares $6,454 Dividends on fund's shares 8 Investment advisory services 158 Services provided by affiliates 172 Deferred Trustees' compensation 11 Other fees and expenses 21 6,824 NET ASSETS AT SEPTEMBER 30, 2003 $663,514 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $663,486 Distributions in excess of net investment income (1) Net unrealized appreciation 29 NET ASSETS AT SEPTEMBER 30, 2003 $663,514
Shares of beneficial interest issued and outstanding - unlimited shares authorized Net assets Shares outstanding Net asset value per share Class A $631,332 631,305 $1.00 Class R-1 330 331 1.00 Class R-2 14,577 14,577 1.00 Class R-3 11,123 11,122 1.00 Class R-4 1,493 1,493 1.00 Class R-5 4,659 4,658 1.00
STATEMENT OF OPERATIONS for the year ended September 30, 2003 (dollars in thousands) INVESTMENT INCOME: Income: Interest $8,836 Fees and expenses: Investment advisory services $2,184 Distribution services 766 Transfer agent services 866 Administrative services 89 Reports to shareholders 38 Registration statement and prospectus 169 Postage, stationery and supplies 133 Trustees' compensation 25 Auditing and legal 38 Custodian 28 State and local taxes 7 Other 37 Total expenses before reimbursement 4,380 Reimbursement of expenses 81 4,299 Net investment income 4,537 NET UNREALIZED APPRECIATION ON INVESTMENTS 13 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,550
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2003 2002 Operations: Net investment income $4,537 $6,632 Net unrealized appreciation (depreciation) on investments 13 (104) Net increase in net assets resulting from operations 4,550 6,528 Dividends paid to shareholders from net investment income (4,538) (6,649) Capital share transactions (24,951) 199,523 Total (decrease) increase in net assets (24,939) 199,402 Net assets: Beginning of year 688,453 489,051 End of year $663,514 $688,453 See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The U.S. Treasury Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. The fund offers six share classes consisting of one retail share class (Class A) and five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5). All share classes are sold without any sales charges and do not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2003, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2003, the cost of investment securities for federal income tax purposes was $665,610,000. As of September 30, 2003, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $18 Gross unrealized appreciation on investment securities 29
Distributions paid to shareholders from ordinary income were as follows (dollars in thousands): SHARE CLASS(1) YEAR ENDED SEPTEMBER 30, 2003 YEAR ENDED SEPTEMBER 30, 2002 Class A $ 4,486 $ 6,642 Class R-1 -* -* Class R-2 10 -* Class R-3 8 -* Class R-4 4 -* Class R-5 30 7 Total $ 4,538 $ 6,649 * Amount less than one thousand. (1) Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on an annual rate of 0.300% on the first $800 million of daily net assets and 0.285% on such assets in excess of $800 million. For the year ended September 30, 2003, the investment advisory services fee was $2,184,000. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. ------------------------------------------------ ----------------------------- ----------------------------- Share class Currently approved limits Plan limits ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class A 0.15% 0.15% ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-1 1.00 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-2 0.75 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-3 0.50 0.75 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-4 0.25 0.50 ------------------------------------------------ ----------------------------- -----------------------------
All share classes may use a portion (0.15% for Class A and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A shares. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than Class A. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the start-up period for classes R-1, R-2, R-3 and R-4, CRMC has voluntarily agreed to pay a portion of these fees. For the year ended September 30, 2003, the total fees paid by CRMC were $25,000. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the year ended September 30, 2003, were as follows (dollars in thousands): ------------------------------------------------------------------------------------------ Share class Distribution Transfer agent Administrative services services services ---------------------------------------- CRMC Transfer agent administrative services services ------------------------------------------------------------------------------------------ Class A $659 $866 Not applicable Not applicable ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Class R-1 2 Included in $-* $1 administrative services ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Class R-2 70 Included in 14 46 administrative services ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Class R-3 32 Included in 10 11 administrative services ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Class R-4 3 Included in 2 -* administrative services ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Class R-5 Not applicable Included in 4 1 administrative services ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total $766 $866 $30 $59 ----------------========================================================================== *Amount less than one thousand. Due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. For the year ended September 30, 2003, the total fees paid by CRMC for classes R-1, R-2 and R-3 were $56,000.
DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Share class(1) Sales(2) Reinvestments of dividends Amount Shares Amount Shares Year ended September 30, 2003 Class A $ 778,494 778,494 $ 4,259 4,259 Class R-1 382 382 -* -* Class R-2 49,988 49,988 9 9 Class R-3 35,967 35,967 6 6 Class R-4 6,541 6,541 4 4 Class R-5 6,797 6,797 15 15 Total net increase (decrease) $ 878,169 878,169 $ 4,293 4,293 Year ended September 30, 2002 Class A $ 938,667 938,667 $ 6,282 6,282 Class R-1 219 219 -* -* Class R-2 8,400 8,400 -* -* Class R-3 553 553 -* -* Class R-4 49 49 -* -* Class R-5 3,861 3,861 4 4 Total net increase (decrease) $ 951,749 951,749 $ 6,286 6,286 Share class(1) Repurchases(2) Net (decrease) increase Amount Shares Amount Shares Year ended September 30, 2003 Class A $ (834,303) (834,303) $ (51,550) (51,550) Class R-1 (270) (270) 112 112 Class R-2 (36,844) (36,844) 13,153 13,153 Class R-3 (24,898) (24,898) 11,075 11,075 Class R-4 (5,101) (5,101) 1,444 1,444 Class R-5 (5,997) (5,997) 815 815 Total net increase (decrease) $ (907,413) (907,413) $ (24,951) (24,951) Year ended September 30, 2002 Class A $ (751,008) (751,008) $ 193,941 193,941 Class R-1 - - 219 219 Class R-2 (6,976) (6,976) 1,424 1,424 Class R-3 (506) (506) 47 47 Class R-4 - - 49 49 Class R-5 (22) (22) 3,843 3,843 Total net increase (decrease) $ (758,512) (758,512) $ 199,523 199,523 * Amount less than one thousand. (1) Class R-1, R-2, R-3, R-4 and R-5 shares were offered beginning May 15, 2002. (2) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2003, the custodian fee of $28,000 included $3,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income(2) income of period Class A: Year ended 9/30/2003 $1.00 $.006 $(.006) $1.00 Year ended 9/30/2002 1.00 .013 (.013) 1.00 Year ended 9/30/2001 1.00 .042 (.042) 1.00 Year ended 9/30/2000 1.00 .049 (.049) 1.00 Year ended 9/30/1999 1.00 .039 (.039) 1.00 Class R-1: Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-2: Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-3: Year ended 9/30/2003 1.00 .002 (.002) 1.00 Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-4: Year ended 9/30/2003 1.00 .004 (.004) 1.00 Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Class R-5: Year ended 9/30/2003 1.00 .008 (.008) 1.00 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 Ratio of Ratio of Net assets, expenses net income Total end of period to average to average return (in millions) net assets net assets Class A: Year ended 9/30/2003 .63% $631 .58% .63% Year ended 9/30/2002 1.29 683 .63 1.27 Year ended 9/30/2001 4.27 489 .66 4.12 Year ended 9/30/2000 5.01 369 .62 4.81 Year ended 9/30/1999 4.00 467 .59 3.95 Class R-1: Year ended 9/30/2003 .12 - (3) 1.08 (4) .12 Period from 7/12/2002 to 9/30/2002 .11 - (3) .32 (4) .05 Class R-2: Year ended 9/30/2003 .12 15 1.02 (4) .10 Period from 6/11/2002 to 9/30/2002 .08 1 .44 (4) .08 Class R-3: Year ended 9/30/2003 .18 11 .99 (4) .11 Period from 8/16/2002 to 9/30/2002 .07 - (3) .13 (4) .07 Class R-4: Year ended 9/30/2003 .43 2 .77 (4) .36 Period from 8/2/2002 to 9/30/2002 .17 - (3) .12 (4) .15 Class R-5: Year ended 9/30/2003 .75 5 .46 .73 Period from 5/15/2002 to 9/30/2002 .47 4 .18 .46 (1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) Amount less than 1 million. (4) During the start-up period for this class, CRMC voluntarily agreed to pay a portion of the fees relating to transfer agent services. Had CRMC not paid such fees, expense ratio percentage points would have been higher by .36 for Class R-1, .23 for Class R-2, .05 for Class R-3 and .02 for Class R-4 during the year ended September 30, 2003, and higher by .20 for Class R-1, .04 for Class R-2, .07 for Class R-3 and .21 for Class R-4 during the period ended September 30, 2002. In addition, due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. Had CRMC not paid such fees and expenses, expense ratio percentage points would have been higher by .47 for Class R-1, .49 for Class R-2 and .13 for Class R-3 during the year ended September 30, 2003, and higher by .02 for classes R-1 and R-2 during the period ended September 30, 2002.
REPORT OF INDEPENDENT AUDITORS TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE U.S. TREASURY MONEY FUND OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The U.S. Treasury Money Fund of America (the "Fund") at September 30, 2003, and the results of its operations, the changes in its net assets and its financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at September 30, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Los Angeles, California October 31, 2003 TAX INFORMATION (UNAUDITED) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. Certain states may exempt from income taxation that portion of the dividends paid from net investment income that was derived from direct U.S. Treasury obligations. For purposes of computing this exclusion, all of the dividends paid by the fund from net investment income were derived from interest on direct U.S. Treasury obligations. Dividends and distributions received by retirement plans such as IRAs, Keogh-type plans and 403(b) plans need not be reported as taxable income. However, many retirement plan trusts may need this information for their annual information reporting. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. THE TAX-EXEMPT MONEY FUND OF AMERICA INVESTMENT PORTFOLIO September 30, 2003 Principal Market Yield at amount value acquisition (000) (000) ARIZONA - 3.30% Salt River Project Agricultural Improvement & Power Dist., TECP, Series B: 0.85% 10/10/03 0.85% $5,000 $5,000 0.90% 11/4/03 0.90 2,000 2,000 0.85% 11/13/03 0.85 5,000 5,000 CALIFORNIA - 0.84% San Diego Community College Dist., San Diego County, California, Tax-Exempt 0.99 3,000 3,034 G.O. Bonds, Election 2002, Series 2003-A, FSA insured, 3.00% 5/1/04 DELAWARE - 0.55% Econ. Dev. Auth., Industrial Dev. Rev. Bonds (Clean Power Project), Series 1.18 2,000 2,000 1997-D, AMT, 1.18% 8/1/29 (1) DISTRICT OF COLUMBIA - 4.62% Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000, TECP: 0.85% 10/3/03 0.85 3,800 3,800 0.85% 10/15/03 0.85 5,000 5,000 Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP: Series 1999-B: 0.90% 10/29/03 0.90 3,500 3,500 0.95% 11/20/03 0.95 2,000 2,000 Series 1999-C, 0.95% 11/25/03 0.95 2,500 2,500 FLORIDA - 12.58% State Board of Education, Public Education Capital Outlay Bonds, Series 1994-A, 0.98 1,665 1,736 5.875% 6/1/16 (preref. 6/1/04) Municpal Power Agcy., Initial Pooled Loan Project, Series 1995-A, TECP: 0.85% 10/8/03 0.85 3,400 3,400 0.85% 11/5/03 0.85 2,000 2,000 0.85% 11/17/03 0.85 3,000 2,999 School Dist. of Broward County, G.O. Ref. Bonds, Series 2002-A, 2.50% 2/15/04 0.95 2,075 2,087 City of Jacksonville: Electric Auth., Series 1993-C1, TECP, 0.88% 10/7/03 0.88 5,800 5,800 Health Facs. Auth., Health Care Facs. Rev. Ref. Bonds (Mayo Foundation/St Luke's Hospital Asssocation), Series 2001-B. TECP: 0.95% 11/3/03 0.95 2,400 2,400 0.85% 11/10/03 0.85 3,500 3,500 Health Facs. Auth., Hospital Rev. and Ref. Bonds (Genesis Rehabilitation 1.22 1,100 1,100 Hospital Project), Series 1996, 1.22% 5/1/21 (1) Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled Independent Higher Education Institutions Loan Program), Series 1985, TECP: 0.83% 10/14/03 0.83 5,600 5,600 0.84% 11/4/03 0.84 1,000 1,000 Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg. Program), AMBAC/FGIC insured, TECP: Series C: 0.80% 10/7/03 0.80 1,500 1,500 0.80% 10/8/03 0.80 2,591 2,591 0.85% 10/9/03 0.85 2,000 2,000 Series 2000-A, 0.88% 10/9/03 0.88 1,000 1,000 Series 2000-C: 0.85% 10/1/03 0.85 3,000 3,000 0.85% 10/7/03 0.85 4,000 4,000 GEORGIA - 0.55% DeKalb County, Water and Sewerage Rev. Ref. Bonds, Series 1997, 6.00% 10/1/03 1.05 2,000 2,000 ILLINOIS - 0.69% Dev. Fin. Auth., Residential Rental Rev. Bonds (F.C. Harris Pavilion Project), 1.05 2,500 2,500 Series 1994, AMT, 1.05% 4/1/24 (1) INDIANA - 2.39% Health Fac. Fncg. Auth., Variable Rate Demand Rev. Bonds (Community Mental 1.10 2,700 2,700 Health and Rehabilitation Facs. Designated Pool Program), Series 1990, 1.10% 11/1/20 (1) Transportration Fin. Auth., Highway Bond Anticipation Notes, Series 2003-A, 1.50% 10/3/03 1.50 2,000 2,000 County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing Project), AMT: (1) Series 2000-A, 1.09% 1/1/30 1.09 2,000 2,000 Series 2001-B, 1.09% 9/1/31 1.09 2,000 2,000 MARYLAND - 13.30% Health and Higher Educational Facs. Auth.: Johns Hopkins University Issue, Commercial Paper Rev. Notes: Series 2001-A: 0.85% 10/15/03 0.85 2,500 2,500 0.85% 11/13/03 0.85 5,629 5,629 Series 2001-B: 0.85% 10/16/03 0.85 5,000 5,000 0.85% 10/27/03 0.85 1,500 1,500 Pooled Loan Program Rev. Bonds, Series 1994-D, 0.95% 1/1/29 (1) 0.95 195 195 Baltimore County: Consolidated Public Improvement Bond Anticipation Notes, Series 1995, TECP: 0.85% 10/6/03 0.85 3,000 3,000 0.88% 10/7/03 0.88 3,000 3,000 0.88% 10/10/03 0.88 2,000 2,000 0.90% 11/3/03 0.90 1,000 1,000 Rev. Bonds (Oak Crest Village, Inc. Project), Series 1999-A, 1.05% 1/1/29 (1) 1.05 1,325 1,325 Frederick County, Consolidated Public Improvement Variable Rate Demand Bond 1.05 1,255 1,255 Anticipation Notes, Series 1997, 1.05% 10/1/07 (1) Howard County, Consolidated Public Improvement Bond Anticipation Notes, Series 2002-C, TECP: 0.88% 10/1/03 0.88 1,000 1,000 0.90% 11/3/03 0.90 4,000 4,000 0.90% 11/6/03 0.90 1,500 1,500 0.90% 11/7/03 0.90 4,700 4,700 Montgomery County, Consolidated Public Improvement Bond Anticipation Notes, Series 2002, TECP: 0.85% 10/17/03 0.85 7,000 7,000 0.85% 11/10/03 0.85 3,700 3,700 MASSACHUSETTS - 1.75% Commonwealth of Massachusetts, G.O. Ref. Bonds, Series 1998-A, 1.05% 9/1/16 (1) 1.05 2,900 2,900 Bay Transportation Auth., General Transportation System Bonds, Ref. Bonds, Series 1.00 3,320 3,454 MICHIGAN - 0.69% City of Detroit, Sewage Disposal System Rev. Ref. Bonds, Series 1998-A, MBIA insured, 1.05 2,495 2,495 1.05% 7/1/23 (1) MINNESOTA - 1.93% City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical Center ), TECP: Series 2001-B, 0.80% 10/1/03 0.80 5,000 5,000 Series 2001-C, 0.85% 11/4/03 0.85 2,000 2,000 MISSOURI - 1.05% Health and Educational Facs. Auth., Health Facs. Adjustable Demand Rev. Bonds 1.08 2,000 2,000 (Barnes Hospital Project), Series 1985-B, 1.08% 12/1/15 (1) The Curators of the University of Missouri Systems Facs. Demand Rev. Bonds, 1.22 1,800 1,800 Series 2001-A, 1.22% 11/1/31 (1) NEW JERSEY - 0.78% Health Care Facs. Fncg. Auth., Rev. Bonds (Saint Barnabas Health Care System 1.07 2,820 2,820 Issue), Series 2001-A, 1.07% 7/1/31 (1) NEW YORK - 1.38% New York City Housing Dev. Corp., Multi-Family Mortgage Rev. Bonds (Columbus 1.05 5,000 5,000 Apartments), Series 1995-A, 1.05% 3/15/25 (1) OHIO - 1.20% Building Auth., State Facs. Bonds (Arts Facs. Building Fund Projections), 1.07 1,000 1,000 Series 1997-A, 5.50% 10/1/03 Higher Education Capital Facs., G.O. Bonds, Series 2000-B, 5.25% 5/1/04 0.98 2,000 2,049 Highway Capital Improvements Bonds, Series E, 5.25% 5/1/04 0.98 1,275 1,307 PENNSYLVANIA - 2.68% Delaware County, Industrial Dev. Auth., Variable Rate Demand Solid Waste Rev. 1.10 1,695 1,695 Bonds (Scott Paper Co. Project), Series 1984-E, 1.10% 12/1/18 (1) Lehigh County, General Purpose Auth. (Saint Luke's Hospital of Bethlehem, 1.25 1,000 1,000 PA Project), Hospital Rev. Bonds, Series of 2001, 1.25% 7/1/31 (1) Montgomery County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds: Exelon Generation Co., LLC Project, Series 2001-B, TECP: 0.90% 11/4/03 0.90 2,000 2,000 0.90% 11/5/03 0.90 1,000 1,000 0.85% 11/6/03 0.85 1,000 1,000 PECO Energy Co. Project, Series 1994-A, TECP 0.85% 10/6/03 0.85 3,000 3,000 RHODE ISLAND - 1.10% Rhode Island Student Loan Auth., Student Loan Program Rev. Bonds, Series 1996-2, 1.15 4,000 4,000 AMT, 1.15% 6/1/26 (1) SOUTH CAROLINA - 3.77% Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP: 0.85% 10/3/03 0.85 5,500 5,500 0.85% 10/14/03 0.85 2,500 2,500 0.85% 10/16/03 0.85 5,700 5,700 TENNESSEE - 2.04% Health, Educational and Housing Fac., Board of the County of Shelby, Variable Rate Rev. Bonds (Baptist Memorial Hospital Project), Series 2000: 1.00% 10/30/03 1.00 2,000 2,000 0.92% 11/14/03 0.92 3,000 3,000 Public Building Auth. of the City of Clarksville, Adjusted Rate Pooled Fncg. Rev. Bonds: (1) (Municipal Bond Fund), Series 2003, 1.22% 1/1/33 1.22 1,000 1,000 Series 2001, 1.22% 7/1/31 1.22 1,400 1,400 TEXAS - 24.04% Public Fin. Auth., Rev. Notes, Series 2003, TECP: 0.85% 10/2/03 0.85 6,000 6,000 0.85% 10/6/03 0.85 2,000 2,000 0.85% 10/14/03 0.85 1,900 1,900 Board of Regents of The University of Texas System, Permanent University Fund Flexible Rate Notes: Series 1998-A, 0.87% 11/6/03 0.87 5,000 5,000 Series 2002-A: 0.90% 11/3/03 0.90 5,000 5,000 0.85% 11/5/03 0.85 2,200 2,200 0.85% 11/7/03 0.85 7,000 7,000 0.90% 11/10/03 0.90 2,600 2,600 Harris County, G.O. Notes, TECP: Series B: 0.85% 10/10/03 0.85 2,130 2,130 0.85% 11/10/03 0.85 2,600 2,600 Series C, 0.88% 10/14/03 0.88 5,000 5,000 Series D, 0.85% 10/9/03 0.85 1,730 1,730 City of Houston G.O. Notes, TECP: Series A: 0.80% 10/09/03 0.80 5,000 5,000 0.85% 10/23/03 0.85 3,000 3,000 Series C, 0.80% 10/21/03 0.80 2,000 2,000 Series E, 0.85% 10/28/03 0.85 4,000 4,000 Public Improvement and Ref. Bonds, Series 2001-A, 5.00% 3/1/04 1.01 2,000 2,033 Lower Colorado River Auth., Series A, TECP: 0.80% 10/2/03 0.80 7,500 7,500 0.90% 10/8/03 0.90 3,000 3,000 0.85% 10/10/03 0.85 5,600 5,600 City of Midlotian Industrial Dev. Corp., Variable Rate Demand Pollution Control 1.07 1,900 1,900 Rev. Bonds (Box-Crow Cement Company Project), 1.07% 12/1/09 (1) City of San Antonio, Electric and Gas Systems Notes, Series A, TECP: 0.80% 10/15/03 0.80 3,000 3,000 0.85% 10/20/03 0.85 2,700 2,700 0.85% 10/29/03 0.85 2,000 2,000 0.85% 11/18/03 0.85 2,500 2,499 UTAH - 3.58% Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds, AMBAC insured, TECP: Series 1985-E: 0.83% 10/8/2003 0.83 2,000 2,000 0.86% 10/20/2003 0.86 2,500 2,500 Series 1985-F: 0.85% 11/5/2003 0.85 2,000 2,000 0.85% 11/12/2003 0.85 6,500 6,500 VIRGINIA - 5.43% Public School Auth., School Equipment Fncg. Notes, Educational Technology, 0.94 1,200 1,225 Series VI, 5.125% 4/1/04 Fairfax County, Public Improvement Bonds, Series 2000-A: 5.25% 6/1/04 0.95 2,050 2,108 6.00% 6/1/04 0.90 2,000 2,067 Metropolitan Washington Airports Auth., Flexible Term PFC Rev Notes, Series 1999-A, AMT, TECP: 0.88% 10/2/03 0.88 2,700 2,700 0.92% 10/22/03 0.92 3,000 3,000 0.93% 10/27/03 0.93 2,500 2,500 0.98% 11/26/03 0.98 1,000 1,000 Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal 0.87 1,000 1,000 Associates Project), TECP, Series 1987-A, 0.87% 11/4/03 Industrial Dev. Auth. of the City of Roanoke, Hospital Rev. Ref. Bonds 1.22 1,670 1,670 (Carilion Health System Obligated Group), Series 2002-D, 1.22% 7/1/27 (1) City of Virginia Beach, G.O. Public Improvement Bonds, Series 2003-A, 2.50% 5/1/04 1.01 2,500 2,522 WASHINGTON - 1.85% Port of Seattle, Subordinate Lien Rev. Notes, Series 2001-B1, AMT, TECP, 0.95% 11/5/03 0.95 3,000 3,000 City of Tacoma, Rev. Bond Anticipation Notes, Series 2002-2A, TECP: 0.88% 10/6/03 0.88 2,500 2,500 0.90% 11/4/03 0.90 1,200 1,200 WEST VIRGINIA - 2.10% Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project), 0.90 1,200 1,200 Series 1989-A, AMT, TECP, 0.90% 12/1/03 The County Commission of Marion County, Solid Waste Disposal, AMT, 1.11% 1.11 1,400 1,400 10/1/17 (1) The County Commission of Putnam County, Solid Waste Disposal Rev. Bonds 1.09 5,000 5,000 (Toyota Motor Manufacturing Project), Series 2000-A, AMT, 1.09% 4/1/30 (1) WISCONSIN - 3.41% G.O. Notes, TECP: Series 1997-A: 0.87% 10/6/03 0.87 2,000 2,000 0.85% 10/21/03 0.85 5,000 5,000 Series 1998-A, 0.85% 10/8/03 0.85 4,400 4,400 Milwaukee County, G.O. Corporate Purpose Bonds, Series 2001-A, 4.50% 10/1/03 1.07 1,000 1,000 WYOMING - 2.00% Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds (PacifiCorp Project), Series 1988-A, TECP: 0.88% 10/9/03 0.88 3,000 3,000 0.90% 11/4/03 0.90 2,300 2,300 0.90% 11/6/03 0.90 2,000 2,000 TOTAL INVESTMENT SECURITIES (cost: $361,859,000) 361,855 Other assets less liabilities 1,437 NET ASSETS $363,292 (1) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date. KEY TO ABBREVIATIONS Agcy. = Agency AMT = Alternative Minimum Tax Auth. = Authority Dev. = Development Dist. = District Econ. = Economic Fac. = Facility Facs. = Facilities Fin. = Finance Fncg. = Financing G.O. = General Obligation Preref. = Prerefunded Ref. = Refunding Rev. = Revenue TECP = Tax-Exempt Commercial Paper See Notes to Financial Statements
THE TAX-EXEMPT MONEY FUND OF AMERICA FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES at September 30, 2003 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market (cost: $361,859) $361,855 Cash 1,017 Receivables for: Sales of fund's shares $991 Interest 716 1,707 364,579 LIABILITIES: Payables for: Repurchases of fund's shares 1,109 Dividends on fund's shares 5 Investment advisory services 114 Services provided by affiliates 34 Deferred Trustees' compensation 14 Other fees and expenses 11 1,287 NET ASSETS AT SEPTEMBER 30, 2003 $363,292 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $363,392 Distributions in excess of net investment income (96) Net unrealized depreciation (4) NET ASSETS AT SEPTEMBER 30, 2003 $363,292
SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES AUTHORIZED Net assets Shares outstanding Net asset value per share Class A $353,339 353,436 $1.00 Class R-5 9,953 9,956 1.00
STATEMENT OF OPERATIONS for the year ended September 30, 2003 (dollars in thousands) INVESTMENT INCOME: Income: Interest $4,153 Fees and expenses: Investment advisory services $1,408 Distribution services 184 Transfer agent services 134 Administrative services 10 Reports to shareholders 27 Registration statement and prospectus 120 Postage, stationery and supplies 48 Trustees' compensation 27 Auditing and legal 45 Custodian 22 State and local taxes 5 Other 23 2,053 Net investment income 2,100 Net unrealized depreciation on investments (22) Net increase in net assets resulting from operations $2,078
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2003 2002 OPERATIONS: Net investment income $2,100 $3,471 Net unrealized depreciation on investments (22) (51) Net increase in net assets resulting from operations 2,078 3,420 DIVIDENDS PAID TO SHAREHOLDERS FROM NET INVESTMENT INCOME (2,101) (3,474) CAPITAL SHARE TRANSACTIONS 11,833 32,792 TOTAL INCREASE IN NET ASSETS 11,810 32,738 NET ASSETS: Beginning of year 351,482 318,744 End of year $363,292 $351,482
See Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Tax-Exempt Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality municipal securities with effective maturities of one year or less. The fund offers two share classes consisting of one retail share class (Class A) and one retirement plan share class (Class R-5). Both share classes are sold without any sales charges and do not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2003, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2003, the cost of investment securities for federal income tax purposes was $361,859,000. As of September 30, 2003, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $21 Short-term loss deferrals (expiring 2004 through 2011) (100) Gross unrealized appreciation on investment securities 3 Gross unrealized depreciation on investment securities (7)
Distributions paid to shareholders from ordinary income were as follows (dollars in thousands): Share class(1) Year ended September 30, 2003 Year ended September 30, 2002 Class A $ 2,056 $ 3,461 Class R-5 45 13 Total $ 2,101 $ 3,474 (1) Class R-5 shares were offered beginning July 15, 2002.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.390% on the first $200 million of daily net assets and decreasing to 0.290% on such assets in excess of $1.2 billion. For the year ended September 30, 2003, the investment advisory services fee was $1,408,000, which was equivalent to an annualized rate of 0.381% of average daily net assets. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted a plan of distribution for Class A shares. Under the plan, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plan provides for annual expenses, based on a percentage of average daily net assets, of up to 0.15%. This class may use a portion of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A shares. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to Class R-5 shares from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for Class R-5. This class pays CRMC annual fees of 0.10% based on its respective average daily net assets. This class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Share class(1) Sales(2) Reinvestments of dividends Amount Shares Amount Shares Year ended September 30, 2003 Class A $ 416,952 416,952 $ 1,948 1,948 Class R-5 31,199 31,199 35 35 Total net increase (decrease) $ 448,151 448,151 $ 1,983 1,983 Year ended September 30, 2002 Class A $ 456,264 456,264 $ 3,284 3,284 Class R-5 17,733 17,733 12 12 Total net increase (decrease) $ 473,997 473,997 $ 3,296 3,296 Repurchases(2) Net increase Amount Shares Amount Shares Year ended September 30, 2003 Class A $ (407,232) (407,232) $ 11,668 11,668 Class R-5 (31,069) (31,069) 165 165 Total net increase (decrease) $ (438,301) (438,301) $ 11,833 11,833 Year ended September 30, 2002 Class A $ (436,547) (436,547) $ 23,001 23,001 Class R-5 (7,954) (7,954) 9,791 9,791 Total net increase (decrease) $ (444,501) (444,501) $ 32,792 32,792
(1) Class R-5 shares were offered beginning July 15, 2002. (2) Includes exchanges between share classes of the fund. 5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2003, the custodian fee of $22,000 included $9,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income(2) income of period Class A: Year ended 9/30/2003 $1.00 $.006 $(.006) $1.00 Year ended 9/30/2002 1.00 .010 (.010) 1.00 Year ended 9/30/2001 1.00 .029 (.029) 1.00 Year ended 9/30/2000 1.00 .032 (.032) 1.00 Year ended 9/30/1999 1.00 .025 (.025) 1.00 Class R-5: Year ended 9/30/2003 1.00 .005 (.005) 1.00 Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Ratio of Ratio of Net assets, expenses net income Total end of period to average to average return (in millions) net assets net assets Class A: Year ended 9/30/2003 .57% $353 .55% .57% Year ended 9/30/2002 1.05 341 .54 1.04 Year ended 9/30/2001 2.92 319 .52 2.86 Year ended 9/30/2000 3.29 276 .64 3.23 Year ended 9/30/1999 2.51 255 .65 (3) 2.33 Class R-5: Year ended 9/30/2003 .54 10 .58 .55 Period from 7/15/2002 to 9/30/2002 .17 10 .12 .17 (1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) Had CRMC not waived fees for investment advisory services, the fund's expense ratio would have been .68%.
REPORT OF INDEPENDENT AUDITORS TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE TAX-EXEMPT MONEY FUND OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Tax-Exempt Money Fund of America (the "Fund") at September 30, 2003, and the results of its operations, the changes in its net assets and its financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at September 30, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Los Angeles, California October 31, 2003 TAX INFORMATION (UNAUDITED) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. Shareholders may exclude from federal taxable income any exempt-interest dividends paid from net investment income. For purposes of computing this exclusion, all of the dividends paid from net investment income qualify as exempt-interest dividends. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2004 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2003 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. BOARD OF TRUSTEES "NON-INTERESTED" TRUSTEES YEAR FIRST ELECTED A TRUSTEE NAME AND AGE OF THE FUND(1) PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AMBASSADOR 1999 Corporate director and author; former U.S. RICHARD G. CAPEN, JR., 69 Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc.; former Chairman and Publisher, The Miami Herald H. FREDERICK CHRISTIE, 70 CMTA 1976 Private investor; former President and CEO, CTRS 1991 The Mission Group (non-utility holding company, CTEX 1989 subsidiary of Southern California Edison Company) DIANE C. CREEL, 55 1994 Chairman of the Board and CEO, AnAerobics, Inc. (organic waste management) MARTIN FENTON, 68 CMTA 1989 Chairman of the Board and CEO, Senior Resource CTRS 1991 Group LLC (development and management of CTEX 1989 senior living communities) LEONARD R. FULLER, 57 CMTA 1994 President and CEO, Fuller Consulting (financial CTRS 1994 management consulting firm) CTEX 1995 RICHARD G. NEWMAN, 69 1991 Chairman of the Board and CEO, AECOM Technology Corporation (engineering, consulting and professional services) FRANK M. SANCHEZ, 60 1999 Principal, The Sanchez Family Corporation dba McDonald's Restaurants (McDonald's licensee) "NON-INTERESTED" TRUSTEES NUMBER OF BOARDS WITHIN THE FUND COMPLEX(2) ON WHICH NAME AND AGE TRUSTEE SERVES OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE AMBASSADOR 14 Carnival Corporation RICHARD G. CAPEN, JR., 69 H. FREDERICK CHRISTIE, 70 19 Ducommun Incorporated; IHOP Corporation; Southwest Water Company; Valero L.P. DIANE C. CREEL, 55 12 Allegheny Technologies; BF Goodrich; Teledyne Technologies MARTIN FENTON, 68 16 None LEONARD R. FULLER, 57 14 None RICHARD G. NEWMAN, 69 13 Southwest Water Company FRANK M. SANCHEZ, 60 12 None "INTERESTED" TRUSTEES(4) YEAR FIRST ELECTED A TRUSTEE OR PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND NAME, AGE AND OFFICER OF POSITIONS HELD WITH AFFILIATED ENTITIES OR THE PRINCIPAL POSITION WITH FUND THE FUND(1) UNDERWRITER OF THE FUND PAUL G. HAAGA, JR., 54 CMTA 1985 Executive Vice President and Director, Capital Chairman of the Boards CTRS 1990 Research and Management Company; Director, CTEX 1992 The Capital Group Companies, Inc.;(5) Director, American Funds Distributors, Inc.(5) ABNER D. GOLDSTINE, 73 CMTA 1976 Senior Vice President and Director, Capital Research President CTRS 1991 and Management Company CTEX 1989 DON R. CONLAN, 67 1996 President (retired), The Capital Group Companies, Inc.(5) CMTA = THE CASH MANAGEMENT TRUST OF AMERICA CTRS = THE U.S. TREASURY MONEY FUND OF AMERICA CTEX = THE TAX-EXEMPT MONEY FUND OF AMERICA "INTERESTED" TRUSTEES(4) NUMBER OF BOARDS WITHIN THE FUND COMPLEX(2) NAME, AGE AND ON WHICH POSITION WITH FUND TRUSTEE SERVES OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE PAUL G. HAAGA, JR., 54 17 None Chairman of the Boards ABNER D. GOLDSTINE, 73 12 None President DON R. CONLAN, 67 7 None CMTA = THE CASH MANAGEMENT TRUST OF AMERICA CTRS = THE U.S. TREASURY MONEY FUND OF AMERICA CTEX = THE TAX-EXEMPT MONEY FUND OF AMERICA THE STATEMENT OF ADDITIONAL INFORMATION INCLUDES ADDITIONAL INFORMATION ABOUT FUND TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST BY CALLING AMERICAN FUNDS SERVICE COMPANY AT 800/421-0180. THE ADDRESS FOR ALL TRUSTEES AND OFFICERS OF THE FUND IS 333 SOUTH HOPE STREET, LOS ANGELES, CA 90071, ATTENTION: FUND SECRETARY. (1) Trustees and officers of the fund serve until their resignation, removal or retirement. (2) Capital Research and Management Company manages the American Funds, consisting of 29 funds. Capital Research and Management Company also manages American Funds Insurance Series(R) and Anchor Pathway Fund, which serve as the underlying investment vehicles for certain variable insurance contracts; and Endowments, whose shareholders are limited to certain nonprofit organizations. (3) This includes all directorships (other than those in the American Funds) that are held by each Trustee as a director of a public company or a registered investment company. (4) "Interested persons" within the meaning of the 1940 Act on the basis of their affiliation with the fund's investment adviser, Capital Research and Management Company, or affiliated entities (including the fund's principal underwriter). (5) Company affiliated with Capital Research and Management Company.
OTHER OFFICERS YEAR FIRST ELECTED AN PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND NAME, AGE AND OFFICER OF POSITIONS HELD WITH AFFILIATED ENTITIES OR THE PRINCIPAL POSITION WITH FUND THE FUND(1) UNDERWRITER OF THE FUND NEIL L. LANGBERG, 50 1989 Vice President-- Investment Management Group, Senior Vice President Capital Research and Management Company CTEX only TERESA S. COOK, 51 1991 Senior Vice President-- Investment Management Vice President Group, Capital Research and Management Company CMTA and CTRS only MICHAEL J. DOWNER, 48 1994 Vice President and Secretary, Capital Research and Vice President Management Company; Secretary, American Funds Distributors, Inc.;(5) Director, Capital Bank and Trust Company(5) KAREN F. HALL, 38 1999 Vice President-- Investment Management Group, Assistant Vice President Capital Research and Management Company CMTA and CTRS only JULIE F. WILLIAMS, 55 CMTA 1982 Vice President-- Fund Business Management Secretary CTRS 1991 Group, Capital Research and Management CTEX 1989 Company SUSI M. SILVERMAN, 33 2000 Vice President-- Fund Business Management Treasurer Group, Capital Research and Management Company KIMBERLY S. VERDICK, 39 1994 Assistant Vice President-- Fund Business Assistant Secretary Management Group, Capital Research and Management Company ANTHONY W. HYNES, JR., 40 1993 Vice President-- Fund Business Management Assistant Treasurer Group, Capital Research and Management Company
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER Capital Research and Management Company 333 South Hope Street Los Angeles, CA 90071-1406 135 South State College Boulevard Brea, CA 92821-5823 TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS American Funds Service Company (Please write to the address nearest you.) P.O. Box 25065 Santa Ana, CA 92799-5065 P.O. Box 659522 San Antonio, TX 78265-9522 P.O. Box 6007 Indianapolis, IN 46206-6007 P.O. Box 2280 Norfolk, VA 23501-2280 CUSTODIAN OF ASSETS JPMorgan Chase Bank 270 Park Avenue New York, NY 10017-2070 COUNSEL Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, CA 90071-2228 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 350 South Grand Avenue Los Angeles, CA 90071-2889 PRINCIPAL UNDERWRITER American Funds Distributors, Inc. 333 South Hope Street Los Angeles, CA 90071-1406 Most American Funds offer several share classes, each with its own sales charge and expense structure allowing you to choose the one that best meets your financial needs. The three American Funds money market funds each offer Class A shares at no sales charge. The Cash Management Trust of America (CMTA) is the only American Funds money market fund that offers Class B, Class C and Class F shares. CMTA Class B, C and F shares may be acquired only by exchanging from other American Funds within the same share class (i.e., they may not be purchased directly) and do not offer check-writing privileges. American Funds Class B, C and F shares are subject to additional annual expenses and fees, including, in the case of B and C shares, higher 12b-1 fees and contingent deferred sales charges if Class B shares are redeemed within six years of purchase and Class C shares are redeemed within one year of purchase. Class B, C and F shares are not available to certain employer-sponsored retirement plans. See the CMTA prospectus for further details. FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, OR FOR A PROSPECTUS FOR ANY OF THE AMERICAN FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE COMPANY AT 800/421-0180 OR VISIT US AT AMERICANFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THE AMERICAN FUNDS PROXY VOTING GUIDELINES -- USED TO DETERMINE HOW TO VOTE PROXIES RELATING TO PORTFOLIO SECURITIES -- ARE AVAILABLE UPON REQUEST, FREE OF CHARGE, BY CALLING AMERICAN FUNDS SERVICE COMPANY, VISITING THE AMERICAN FUNDS WEBSITE OR ACCESSING THE U.S. SECURITIES AND EXCHANGE COMMISSION WEBSITE AT WWW.SEC.GOV. This report is for the information of shareholders of The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after December 31, 2003, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter. [logo - AMERICAN FUNDS(R)] THE RIGHT CHOICE FOR THE LONG TERM(R) WHAT MAKES AMERICAN FUNDS DIFFERENT? For more than 70 years, we have followed a consistent philosophy that we firmly believe is in our investors' best interests. The range of opportunities offered by our family of just 29 carefully conceived, broadly diversified funds has attracted over 20 million shareholder accounts. OUR UNIQUE COMBINATION OF STRENGTHS INCLUDES THESE FIVE FACTORS: o A LONG-TERM, VALUE-ORIENTED APPROACH Rather than follow fads, we pursue a consistent strategy, focusing on each investment's long-term potential. o AN UNPARALLELED GLOBAL RESEARCH EFFORT American Funds draws on one of the industry's most globally integrated research networks. o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM Every American Fund is divided among a number of portfolio counselors. Each takes responsibility for a portion independently, within each fund's objectives; in most cases, research analysts manage a portion as well. Over time this method has contributed to a consistency of results and continuity of management. o EXPERIENCED INVESTMENT PROFESSIONALS The recent market decline was not the first for most of the portfolio counselors who serve the American Funds. Nearly 70% of them were in the investment business before the sharp market decline of 1987. o A COMMITMENT TO LOW OPERATING EXPENSES American Funds' operating expenses are among the lowest in the mutual fund industry. Our portfolio turnover rates are low as well, keeping transaction costs and tax consequences contained. 29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS o GROWTH FUNDS Emphasis on long-term growth through stocks AMCAP Fund(R) EuroPacific Growth Fund(R) The Growth Fund of America(R) The New Economy Fund(R) New Perspective Fund(R) New World Fund(SM) SMALLCAP World Fund(R) o GROWTH-AND-INCOME FUNDS Emphasis on long-term growth and dividends through stocks American Mutual Fund(R) Capital World Growth and Income Fund(SM) Fundamental Investors(SM) The Investment Company of America(R) Washington Mutual Investors Fund(SM) o EQUITY-INCOME FUNDS Emphasis on above-average income and growth through stocks and/or bonds Capital Income Builder(R) The Income Fund of America(R) o BALANCED FUND Emphasis on long-term growth and current income through stocks and bonds American Balanced Fund(R) o BOND FUNDS Emphasis on current income through bonds American High-Income Trust(SM) The Bond Fund of America(SM) Capital World Bond Fund(R) Intermediate Bond Fund of America(R) U.S. Government Securities Fund(SM) o TAX-EXEMPT BOND FUNDS Emphasis on tax-free current income through municipal bonds American High-Income Municipal Bond Fund(R) Limited Term Tax-Exempt Bond Fund of America(SM) The Tax-Exempt Bond Fund of America(R) STATE-SPECIFIC TAX-EXEMPT FUNDS The Tax-Exempt Fund of California(R) The Tax-Exempt Fund of Maryland(R) The Tax-Exempt Fund of Virginia(R) o MONEY MARKET FUNDS THE CASH MANAGEMENT TRUST OF AMERICA(R) THE TAX-EXEMPT MONEY FUND OF AMERICA(SM) THE U.S. TREASURY MONEY FUND OF AMERICA(SM) THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust Lit. No. MFGEAR-960-1103 Litho in USA AGD/L/8063 Printed on recycled paper ITEM 2 - Code of Ethics The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071. ITEM 3 - Audit Committee Financial Expert The Registrant's Board has determined that H. Frederick Christie, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item. This designation will not increase the designee's duties, obligations or liability as compared to his duties, obligations and liability as a member of the Audit Committee and of the Board; nor will it reduce the responsibility of the other Audit Committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the Board had designated them as such. Most importantly, the Board believes each member of the Audit Committee contributes significantly to the effective oversight of the Registrant's financial statements and condition. ITEM 4 - Principal Accountant Fees and Services Form N-CSR disclosure requirement not yet effective with respect to Registrant. ITEM 5 - Audit Committee of Listed Registrants Not applicable. ITEM 6 - Reserved ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 8 - Reserved ITEM 9 - Controls and Procedures (a) The officers providing the certifications in this report in accordance with rule 30a-2 under the Investment Company Act of 1940 have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as such term is defined in such rule), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. (b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 10 - Exhibits (a) The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. (b) The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE CASH MANAGEMENT TRUST OF AMERICA By /s/ Abner D. Goldstine - ------------------------------------------------------- Abner D. Goldstine, President and PEO Date: December 9, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ Abner D. Goldstine -------------------------------------------------- Abner D. Goldstine, President and PEO Date: December 9, 2003 By /s/ Susi M. Silverman -------------------------------------------------- Susi M. Silverman, Treasurer Date: December 9, 2003 EX-99.CODE ETH 3 codeofethics.txt CODE OF ETHICS The following Code of Ethics is in effect for the Registrant: With respect to non-affiliated Trustees and all other access persons to the extent that they are not covered by The Capital Group Companies, Inc. policies: 1. No Trustee shall so use his or her position or knowledge gained therefrom as to create a conflict between his or her personal interest and that of the Fund. 2. Each non-affiliated Trustee shall report to the Secretary of the Fund not later than ten (10) days after the end of each calendar quarter any transaction in securities which such Trustee has effected during the quarter which the Trustee then knows to have been effected within fifteen (15) days before or after a date on which the Fund purchased or sold, or considered the purchase or sale of, the same security. 3. For purposes of this Code of Ethics, transactions involving United States Government securities as defined in the Investment Company Act of 1940, bankers' acceptances, bank certificates of deposit, commercial paper, or shares of registered open-end investment companies are exempt from reporting as are non-volitional transactions such as dividend reinvestment programs and transactions over which the Trustee exercises no control. * * * * In addition, the Fund has adopted the following standards in accordance with the requirements of Form-CSR adopted by the Securities and Exchange Commission pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 for the purpose of deterring wrongdoing and promoting: 1) honest and ethical conduct, including handling of actual or apparent conflicts of interest between personal and professional relationships; 2) full, fair accurate, timely and understandable disclosure in reports and documents that a fund files with or submits to the Commission and in other public communications made by the fund; 3) compliance with applicable governmental laws, rules and regulations; 4) the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and 5) accountability for adherence to the Code. These provisions shall apply to the principal executive officer or chief executive officer and treasurer ("Covered Officers") of the Fund. 1. It is the responsibility of Covered Officers to foster, by their words and actions, a corporate culture that encourages honest and ethical conduct, including the ethical resolution of, and appropriate disclosure of conflicts of interest. Covered Officers should work to assure a working environment that is characterized by respect for law and compliance with applicable rules and regulations. 2. Each Covered Officer must act in an honest and ethical manner while conducting the affairs of the Fund, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Duties of Covered Officers include: o Acting with integrity; o Adhering to a high standard of business ethics; o Not using personal influence or personal relationships to improperly influence investment decisions or financial reporting whereby the Covered Officer would benefit personally to the detriment of the Fund; 3. Each Covered Officer should act to promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with or submits to, the Securities and Exchange Commission and in other public communications made by the Fund. o Covered Officers should familiarize themselves with disclosure requirements applicable to the Fund and disclosure controls and procedures in place to meet these requirements. o Covered Officers must not knowingly misrepresent, or cause others to misrepresent facts about the Fund to others, including the Fund's auditors, independent directors, governmental regulators and self-regulatory organizations. 4. Any existing or potential violations of this Code should be reported to The Capital Group Companies' Personal Investing Committee. The Personal Investing Committee is authorized to investigate any such violations and report their findings to the Chairman of the Audit Committee of the Fund. The Chairman of the Audit Committee may report violations of the Code to the Board of Trustees or other appropriate entity including the Audit Committee, if he or she believes such a reporting is appropriate. The Personal Investing Committee may also determine the appropriate sanction for any violations of this Code, including removal from office, provided that removal from office shall only be carried out with the approval of the Board of Trustees. 5. Application of this Code is the responsibility of the Personal Investing Committee, which shall report periodically to the Chairman of the Audit Committee of the Fund. 6. Material amendments to these provisions must be ratified by a majority vote of the Board of Trustees. As required by applicable rules, substantive amendments to the Code must be filed or appropriately disclosed. EX-99.CERT 4 cert302.txt THE CASH MANAGEMENT TRUST OF AMERICA 333 South Hope Street, Los Angeles, California 90071-1406 Telephone (213) 486 9200 CERTIFICATION I, Abner D. Goldstine, certify that: 1. I have reviewed this report on Form N-CSR of The Cash Management Trust of America; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 9, 2003 /s/ Abner D. Goldstine - --------------------------------- Abner D. Goldstine, President and Principal Executive Officer The Cash Management Trust of America The Cash Management Trust of America 333 South Hope Street, Los Angeles, California 90071-1406 Telephone (213) 486 9200 CERTIFICATION I, Susi M. Silverman, certify that: 1. I have reviewed this report on Form N-CSR of The Cash Management Trust of America; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 9, 2003 /s/ Susi M. Silverman ________________________________ Susi M. Silverman, Treasurer The Cash Management Trust of America EX-99.906 5 cert906.txt THE CASH MANAGEMENT TRUST OF AMERICA 333 South Hope Street, Los Angeles, California 90071-1406 Telephone (213) 486 9200 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 ABNER D. GOLDSTINE, President and PEO, and SUSI M. SILVERMAN, Treasurer of The Cash Management Trust of America, (the "Registrant"), each certify to the best of his or her knowledge that: 1) The Registrant's periodic report on Form N-CSR for the period ended September 30, 2003 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Financial Officer THE CASH MANAGEMENT TRUST THE CASH MANAGEMENT TRUST OF AMERICA OF AMERICA /s/ Abner D. Goldstine /s/ Susi M. Silverman - ---------------------------- ----------------------------- Abner D. Goldstine, President Susi M. Silverman, Treasurer Date: December 9, 2003 Date: December 9, 2003 A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to The Cash Management Trust of America and will be retained by The Cash Management Trust of America and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----