N-CSR 1 cmtancsr.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, 2004 Date of reporting period: September 30, 2004 Julie F. Williams Capital Research and Management Company 333 South Hope Street Los Angeles, California 90071 (name and address of agent for service) Copies to: Michael Glazer Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, California 90071 (Counsel for the Registrant) ITEM 1 - Reports to Stockholders [logo - American Funds(R)] The right choice for the long term(R) THE CASH MANAGEMENT TRUST OF AMERICA THE U.S. TREASURY MONEY FUND OF AMERICA THE TAX-EXEMPT MONEY FUND OF AMERICA Laying the foundation for your investment goals: A fund for every portfolio [cover illustration: abstract of three men, dressed in suits, carrying geometric shapes and placing the shapes into similarly shaped cut-outs in the floor] Annual report for the year ended September 30, 2004 The Cash Management Trust of America(R) seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality short-term money market instruments. The U.S. Treasury Money Fund of America(SM) seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. The Tax-Exempt Money Fund of America(SM) seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality municipal securities with effective maturities of one year or less. These money market funds are three of the 29 American Funds, the nation's third-largest mutual fund family. For more than seven decades, Capital Research and Management Company,(SM) the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk. Contents Page The Cash Management Trust of America investment portfolio 4 The U.S. Treasury Money Fund of America investment portfolio 22 The Tax-Exempt Money Fund of America investment portfolio 32
FIGURES SHOWN ARE PAST RESULTS FOR CLASS A SHARES AND ARE NOT PREDICTIVE OF RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE LOWER OR HIGHER THAN THOSE SHOWN. INVESTMENT RETURNS WILL VARY. ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS. INVESTING FOR SHORT PERIODS MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER ENTITY. FOR THE MOST CURRENT INFORMATION AND MONTH-END RESULTS, VISIT AMERICANFUNDS.COM. [chart] [begin line chart] SEVEN-DAY ANNUALIZED RATES,1 FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX For the five years ended September 30, 2004 (plotted monthly)
Federal Tax-Exempt U.S. Treasury Funds Rate Money Fund Cash Management Money Fund Consumer Price (target rate) of America (2) Trust of America of America (3) Index (inflation) Sep-98 5.25 4.43 4.99 4.35 1.49 Oct-98 5.00 3.92 4.74 3.81 1.49 Nov-98 4.75 3.82 4.49 3.72 1.55 Dec-98 4.75 4.03 4.73 3.89 1.61 Jan-99 4.75 3.42 4.47 3.80 1.67 Feb-99 4.75 3.42 4.34 3.83 1.61 Mar-99 4.75 3.52 4.23 3.83 1.73 Apr-99 4.75 3.89 4.26 3.75 2.28 May-99 4.75 3.92 4.34 3.82 2.09 Jun-99 5.00 4.00 4.35 3.79 1.96 Jul-99 5.00 3.88 4.57 4.00 2.14 Aug-99 5.25 4.06 4.75 4.24 2.26 Sep-99 5.25 4.46 4.61 4.32 2.63 Oct-99 5.25 4.40 4.95 4.11 2.56 Nov-99 5.50 4.65 5.00 4.49 2.62 Dec-99 5.50 5.26 5.32 4.47 2.68 Jan-00 5.50 4.17 5.37 4.58 2.74 Feb-00 5.75 4.17 5.20 4.48 3.22 Mar-00 6.00 4.49 5.46 5.08 3.76 Apr-00 6.00 5.35 5.48 5.07 3.07 May-00 6.50 5.45 5.65 5.05 3.19 Jun-00 6.50 5.82 6.06 5.20 3.73 Jul-00 6.50 5.40 5.99 5.21 3.66 Aug-00 6.50 5.55 6.04 5.60 3.41 Sep-00 6.50 5.89 6.06 5.64 3.45 Oct-00 6.50 5.48 6.11 5.44 3.45 Nov-00 6.50 5.85 5.97 5.36 3.45 Dec-00 6.50 5.68 5.94 5.12 3.39 Jan-01 5.50 4.55 5.39 5.15 3.73 Feb-01 5.50 3.98 5.01 4.71 3.53 Mar-01 5.00 4.48 4.67 4.37 2.92 Apr-01 4.50 4.69 4.24 3.65 3.27 May-01 4.00 4.29 3.67 3.42 3.62 Jun-01 3.75 3.88 3.28 3.17 3.25 Jul-01 3.75 3.45 3.19 2.89 2.72 Aug-01 3.50 3.15 3.09 2.96 2.72 Sep-01 3.00 2.89 2.71 2.59 2.65 Oct-01 2.50 2.55 1.98 2.05 2.13 Nov-01 2.00 2.20 1.65 1.60 1.90 Dec-01 1.75 1.83 1.33 1.25 1.55 Jan-02 1.75 1.35 1.17 1.13 1.14 Feb-02 1.75 1.32 1.14 1.10 1.14 Mar-02 1.75 1.25 1.17 1.14 1.48 Apr-02 1.75 1.68 1.25 1.16 1.64 May-02 1.75 1.71 1.26 1.12 1.18 Jun-02 1.75 1.45 1.13 1.09 1.07 Jul-02 1.75 1.29 1.16 1.06 1.46 Aug-02 1.75 1.25 1.15 1.13 1.80 Sep-02 1.75 1.46 1.15 1.10 1.51 Oct-02 1.75 1.52 1.21 1.08 2.03 Nov-02 1.25 1.35 1.00 0.87 2.20 Dec-02 1.25 1.04 0.78 0.71 2.38 Jan-03 1.25 0.79 0.77 0.59 2.60 Feb-03 1.25 0.80 0.89 0.58 2.98 Mar-03 1.25 0.61 0.99 0.58 3.02 Apr-03 1.25 0.88 0.85 0.57 2.22 May-03 1.25 0.88 0.88 0.55 2.06 Jun-03 1.00 0.91 0.68 0.46 2.11 Jul-03 1.00 0.63 0.84 0.42 2.11 Aug-03 1.00 0.51 1.05 0.38 2.16 Sep-03 1.00 0.63 1.06 0.42 2.32 Oct-03 1.00 0.60 0.89 0.37 2.04 Nov-03 1.00 0.68 0.77 0.29 1.77 Dec-03 1.00 0.72 0.73 0.25 1.88 Jan-04 1.00 0.45 0.59 0.17 1.93 Feb-04 1.00 0.85 0.63 0.30 1.69 Mar-04 1.00 0.66 0.60 0.30 1.74 Apr-04 1.00 0.74 0.67 0.39 2.29 May-04 1.00 0.82 0.73 0.29 3.05 Jun-04 1.25 0.88 0.67 0.39 3.27 Jul-04 1.25 0.88 1.03 0.49 2.99 Aug-04 1.50 0.98 1.42 0.76 2.65 Sep-04 1.75 1.12 1.51 0.88 2.54
[end line chart] (1) Equivalent to Securities and Exchange Commission (SEC) yields. (2) Represents the fund's taxable equivalent yield calculated at the maximum effective 35.0% federal tax rate. (3) Because income paid by The U.S. Treasury Money Fund of America is exempt from state and local taxes in most states, the fund's taxable equivalent yield would be higher than the rates shown in the chart. Results for share classes B, C, F and 529 of The Cash Management Trust of America can be found on page 19. Please see the inside back cover for important information about share classes. The return of principal for the bond holdings in The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Income from The Tax-Exempt Money Fund of America may be subject to state or local income taxes and/or federal alternative minimum taxes. Certain other income may be taxable. FELLOW SHAREHOLDERS: When we reported to you one year ago, the U.S economy was slowly strengthening and short-term interest rates had reached lows not seen in more than 40 years. Despite a recent rise in rates, yields remained at historically low levels throughout fiscal 2004, and money market funds in general generated only modest returns for the year. During the 12 months ended September 30, 2004, The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America achieved positive returns consistent with their objective of preserving shareholders' capital. Nonetheless, returns were again outpaced by the rate of inflation as rising energy prices in particular spurred the Consumer Price Index higher. The recent low-interest-rate environment in the United States, while a blessing for borrowers, continues to result in low income returns for money market funds. Beginning in June 2004, the Federal Reserve Board raised short-term rates by one percentage point (100 basis points). As a result, the funds' yields rose in the last months of the fiscal year, and most signs point to a continued rise in short-term rates. THE FUNDS' RESULTS THE CASH MANAGEMENT TRUST OF AMERICA produced an income return of 0.84% with dividends reinvested for the fiscal year ended September 30, 2004. THE U.S. TREASURY MONEY FUND OF AMERICA generated a 12-month income return of 0.39%, including reinvested dividends. Because all of the fund's earnings are derived from investments in U.S. Treasury securities, the income paid by the fund is exempt from certain state and local taxes. THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return of 0.49% with dividends reinvested for the 12 months ended September 30, 2004. This return is equivalent to a return of 0.75% for investors in the 35.0% federal tax bracket. A portion of this return may also be exempt from state and local taxes. INTEREST RATES ON THE RISE As we indicated earlier, amid signs of a strengthening economy and hints of rising inflation, the Federal Reserve Board raised the federal funds rate by a quarter point at each of its most recent meetings. These four hikes in June, August, September and November brought the federal funds rate to 2.00%. As the economy continues to expand, the Fed has made it clear that rates may rise further. Because of the short-term maturities of the funds' holdings, higher rates are reflected in the funds' yields (shown in the table below) as the proceeds of maturing issues are reinvested. The likelihood of a higher interest-rate environment in the future could further boost the yield of each of the three money market funds. THE FUNDS' OBJECTIVE Protecting our shareholders' principal, while providing a reasonable income return, is our foremost objective. Because of the stability and convenience they provide, the American Funds money market funds can play a valuable role in your overall investment plan. In the article that begins on page 2, we illustrate the ways in which the money market funds can help you achieve your long-term financial goals. Since September 30, 2003, the number of shareholder accounts in all three funds has increased to more than half a million. We take this opportunity to welcome our new shareholders and express our gratitude to our many long-time shareholders. We appreciate the confidence you have placed in us and look forward to helping you meet your financial goals. Cordially, /s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine Paul G. Haaga, Jr. Abner D. Goldstine Chairman of the Boards President November 15, 2004 For current information about the funds, visit americanfunds.com. YOUR FUNDS' ANNUALIZED SEVEN-DAY SEC YIELDS AS OF 9/30/2004 The Cash Management Trust of America +1.51% The U.S. Treasury Money Fund of America +0.88% (reflecting a fee waiver, +0.87% without the waiver) The Tax-Exempt Money Fund of America +0.73% (reflecting a fee waiver, +0.71% without the waiver) The Tax-Exempt Money Fund of America (taxable equivalent yield)* +1.12% (reflecting a fee waiver, +1.09% without the waiver)
*Represents the fund's taxable equivalent yield calculated at the maximum effective 35.0% federal tax rate. LAYING THE FOUNDATION FOR YOUR INVESTMENT GOALS [cover illustration: abstract of three men, dressed in suits, carrying geometric shapes and placing the shapes into similarly shaped cut-outs in the floor] A FUND FOR EVERY PORTFOLIO Every well-balanced portfolio should include assets that can provide stability. Although they carry no guarantee, The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America are managed to sustain a net asset value of $1.00 per share, so assets in these cash funds remain relatively steady while earning modest income. Unlike a savings or a checking account, the American Funds money market funds are actively managed by a group of dedicated and experienced investment professionals at Capital Research and Management Company, the funds' investment adviser. They recognize the value of every dollar that comes into the funds, and they strive to preserve that value even under the most challenging market conditions. Although returns are not guaranteed, the funds have provided some level of interest income for every year over each of their lifetimes. As has happened in the recent months of rising short-term rates, changes in the yields of money market instruments quickly show up in the funds' returns. American Funds money market funds can be used as accessible tools to help lay the foundation of a solid financial plan. Here are three key ways that the money market funds can be used to help you meet your long-term investment goals: AS A FLEXIBLE CASH RESERVE Virtually everyone needs to have money readily available for monthly bills, unexpected expenses and emergencies. Others need a temporary parking place for sums such as an inheritance or bonus. Your American Funds money market fund can provide a holding place for your cash reserves, allowing you to earn income in the process. Your money can be easily redeemed online, by mail or telephone, and through systematic withdrawals and free check-writing privileges. With your reserve assets in a money market fund, you also have the added advantage of liquidity should other investment opportunities arise, enabling you to pursue attractive financial alternatives whenever they occur. A HOLDING PLACE FOR REGULARLY SCHEDULED INVESTMENTS Your money market fund can be used to accumulate cash designated for periodic purchases of shares in American Funds stock and bond funds. With a dollar cost averaging plan, you invest a consistent amount at regular intervals, such as once a month or every quarter, and that allows you to gradually increase your exposure to stock and bond markets. As the markets rise and fall, you may at times be able to purchase shares in stock and bond funds at a lower average cost than you would if you bought all the shares at once. Also, the virtually impossible task of predicting the best day to buy shares becomes unnecessary. By investing through a dollar cost averaging plan, you can purchase more shares when prices are down and fewer when prices are up. Although this strategy will not ensure a profit or protect you from loss in a declining market, it can reduce the average cost of your portfolio over time by putting market fluctuations to work for you. When share prices are declining, you should always consider your willingness to keep investing. To learn more about a dollar cost averaging plan, please visit our website at americanfunds.com. TO PRESERVE CAPITAL Most prudent investors allocate their resources among stock and bond funds. However, after the market volatility of the past few years, many investors have learned the importance of having a portion of their portfolios in cash. A cash position that outpaces the rate of inflation over the long term is a valuable asset. By placing a percentage of your assets in a money market fund, you can preserve your capital while still earning a stream of income: a sensible move in any market climate. Whether used as a temporary parking place between longer term investments, as part of a regular investment program or simply as a way to earn income on the cash-reserve portion of a balanced portfolio, The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America can be instrumental in helping you achieve your long-term financial goals. [Begin Sidebar] AMERICAN FUNDS MONEY MARKET FUNDS SERVICES FREE CHECK WRITING You can write checks for $250 or more against your Class A share accounts in The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America. EASY INVESTING Once you've set up an account, you can make additional investments of $50 or more: o online at americanfunds.com and by phone when you enroll in FundsLink(R) (details on our website at americanfunds.com or by calling Shareholder Services at 800/421-0180), o by mail, or o through an automatic dollar cost averaging program. EXCHANGE PRIVILEGES American Funds offers a full range of funds to suit your investment objectives. You may make exchanges among virtually all of these funds as your needs or goals change.* You can also automatically exchange shares in amounts of $50 or more though an automatic exchange plan or have dividends cross-reinvested into another fund. EASY WITHDRAWING You can withdraw money from your account at any time: o online at americanfunds.com and by phone when you enroll in FundsLink (details on our website at americanfunds.com or by calling Shareholder Services at 800/421-0180), o by mail, or o through an automatic withdrawal plan through which withdrawals and or dividend payments can be sent to you, your bank or someone of your choosing. *In some cases, a sales charge may apply; contact your financial adviser for details. [End Sidebar] THE CASH MANAGEMENT TRUST OF AMERICA INVESTMENT PORTFOLIO September 30, 2004 Principal Market Yield at amount value SHORT-TERM SECURITIES - 99.98% acquisition (000) (000) Certificates of deposit - 3.93% Societe Generale November 17, 2004 1.72% $50,000 $49,995 State Street Bank & Trust October 12, 2004 1.56 50,000 50,000 November 9, 2004 1.70 50,000 50,000 Toronto-Dominion Bank November 15, 2004 1.74 25,000 24,998 Wells Fargo Bank, N.A. October 1, 2004 1.55 50,000 50,000 October 1, 2004 1.56 50,000 50,000 October 4, 2004 1.54 75,000 75,000 Total certificates of deposit 349,993 COMMERCIAL PAPER - 77.56% 3M Co. October 28, 2004 1.68 15,000 14,980 Abbey National North America LLC November 16, 2004 1.74 50,000 49,882 Abbott Laboratories Inc. (1) October 21, 2004 1.61 30,000 29,972 October 26, 2004 1.54 25,000 24,971 November 18, 2004 1.75 35,000 34,917 November 23, 2004 1.76 35,000 34,908 November 30, 2004 1.77 25,000 24,925 ABN-AMRO North America Finance Inc. November 22, 2004 1.77 50,000 49,868 AIG Funding Inc. October 8, 2004 1.54 30,000 29,990 October 18, 2004 1.54 30,000 29,977 October 19, 2004 1.62 40,000 39,966 American Express Credit Corp. October 5, 2004 1.53 45,000 44,990 October 6, 2004 1.51 25,000 24,994 October 20, 2004 1.65 30,000 29,973 American Honda Finance Corp. October 4, 2004 1.53 10,000 9,998 October 6, 2004 1.58 40,000 39,989 October 12, 2004 1.60 13,500 13,493 November 10, 2004 1.70 46,500 46,409 November 18, 2004 1.75 45,000 44,891 Anheuser-Busch Cos. Inc. (1) October 25, 2004 1.66 25,000 24,971 December 14, 2004 1.81 50,000 49,809 ANZ (Delaware) Inc. November 10, 2004 1.70 50,000 49,901 ANZ National (International) Ltd. (1) November 3, 2004 1.66 50,000 49,922 Bank of America Corp. October 8, 2004 1.50 50,000 49,983 Bank of Ireland (1) December 1, 2004 1.82 100,000 99,678 Bank of Nova Scotia October 8, 2004 1.50 50,000 49,983 October 12, 2004 1.50 50,000 49,974 November 16, 2004 1.74 25,000 24,942 Barclays U.S. Funding LLC November 8, 2004 1.75 100,000 99,811 BMW U.S. Capital Corp. (1) October 27, 2004 1.77 30,000 29,960 November 22, 2004 1.77 45,000 44,883 BNP Paribas Finance Inc. October 6, 2004 1.59 75,000 74,980 October 13, 2004 1.53 50,000 49,972 CAFCO, LLC (1) October 7, 2004 1.52 20,000 19,994 October 15, 2004 1.62 25,000 24,983 October 27, 2004 1.59 50,000 49,939 November 17, 2004 1.80 25,000 24,940 Calyon North America Inc. October 1, 2004 1.52 30,000 29,999 November 5, 2004 1.69 50,000 49,915 November 8, 2004 1.66 50,000 49,906 Canadian Imperial Holdings Inc. October 19, 2004 1.58 25,000 24,979 November 23, 2004 1.80 75,000 74,798 Caterpillar Financial Services Corp. October 12, 2004 1.55 35,000 34,982 November 29, 2004 1.78 40,000 39,883 Caterpillar Inc. (1) October 19, 2004 1.75 25,000 24,977 CDC Commercial Paper Corp. (1) October 20, 2004 1.55 50,000 49,956 October 21, 2004 1.55 50,000 49,954 ChevronTexaco Funding Corp. October 4, 2004 1.48 50,000 49,992 Ciesco LLC November 2, 2004 1.72 80,000 79,873 Clipper Receivables Co., LLC (1) October 8, 2004 1.60 20,000 19,993 October 27, 2004 1.75 30,000 29,961 November 3, 2004 1.79 15,000 14,975 November 5, 2004 1.79 35,000 34,937 Coca-Cola Co. October 15, 2004 1.54 100,000 99,936 October 26, 2004 1.55 30,000 29,965 November 9, 2004 1.64 50,000 49,908 November 30, 2004 1.77 20,000 19,939 DaimlerChrysler Revolving Auto Conduit LLC II October 28, 2004 1.66 35,000 34,955 November 1, 2004 1.68 20,000 19,970 Danske Corp. October 25, 2004 1.62 50,000 49,944 November 29, 2004 1.81 50,000 49,849 Dexia Delaware LLC November 23, 2004 1.78 50,000 49,864 Diageo Capital PLC (1) October 6, 2004 1.51 30,000 29,992 October 20, 2004 1.54 30,000 29,974 DuPont (E.I.) de Nemours & Co. October 4, 2004 1.53 20,000 19,997 October 18, 2004 1.62 30,000 29,976 October 22, 2004 1.55 100,000 99,904 November 23, 2004 1.78 42,700 42,587 Electricite de France November 5, 2004 1.63 50,000 49,917 Eli Lilly and Co. (1) November 10, 2004 1.69 54,300 54,195 European Investment Bank October 18, 2004 1.52 50,000 49,962 November 8, 2004 1.65 50,000 49,908 Export Development Canada October 21, 2004 1.61 50,000 49,953 Exxon Project Investment Corp. (1) October 29, 2004 1.73 50,000 49,930 FCAR Owner Trust I October 13, 2004 1.56 30,000 29,982 October 18, 2004 1.58 30,500 30,476 November 16, 2004 1.75 50,000 49,883 November 17, 2004 1.75 20,000 19,952 November 19, 2004 1.76 20,000 19,950 Gannett Co. (1) October 21, 2004 1.71 100,000 99,900 General Electric Capital Services Inc. October 26, 2004 1.65 50,000 49,940 November 19, 2004 1.77 50,000 49,877 November 23, 2004 1.77 50,000 49,866 December 6, 2004 1.79 50,000 49,826 HBOS Treasury Services PLC October 14, 2004 1.55 70,000 69,956 October 27, 2004 1.61 50,000 49,940 Hershey Foods Corp. (1) October 22, 2004 1.52 40,000 39,962 Hewlett-Packard Co. (1) October 29, 2004 1.70 85,000 84,884 HSBC USA Inc. October 1, 2004 1.53 50,000 49,998 IBM Capital Inc. (1) October 6, 2004 1.50 35,000 34,991 October 20, 2004 1.67 20,000 19,981 IBM Credit Corp. October 19, 2004 1.52 30,000 29,975 J.P. Morgan Chase & Co. October 22, 2004 1.57 50,000 49,952 October 28, 2004 1.72 25,000 24,967 November 5, 2004 1.75 50,000 49,913 KfW International Finance Inc. (1) November 3, 2004 1.63 50,000 49,928 November 10, 2004 1.74 50,000 49,901 November 17, 2004 1.71 50,000 49,882 Kimberly-Clark Worldwide Inc. (1) October 13, 2004 1.65 13,400 13,392 October 27, 2004 1.73 24,000 23,969 Lloyds TSB Bank PLC October 18, 2004 1.56 50,000 49,961 October 20, 2004 1.56 50,000 49,957 Mont Blanc Capital Corp. (1) October 12, 2004 1.59 30,000 29,984 October 27, 2004 1.79 20,000 19,973 Nestle Capital Corp. (1) October 19, 2004 1.49 50,000 49,959 November 22, 2004 1.74 30,000 29,921 NetJets Inc. (1) November 8, 2004 1.75 24,000 23,955 November 12, 2004 1.75 21,000 20,956 December 6, 2004 1.83 30,000 29,896 New Center Asset Trust October 22, 2004 1.60 45,000 44,956 New Center Asset Trust Plus October 5, 2004 1.53 35,000 34,992 November 10, 2004 1.73 50,000 49,902 Old Line Funding, LLC (1) October 15, 2004 1.60 25,000 24,983 October 26, 2004 1.67 40,000 39,952 Park Avenue Receivables Co., LLC (1) October 18, 2004 1.71 50,000 49,957 PepsiCo Inc. (1) October 19, 2004 1.67 25,000 24,978 October 28, 2004 1.73 35,000 34,953 Pfizer Inc (1) October 6, 2004 1.53 50,000 49,987 October 19, 2004 1.56 17,500 17,486 October 25, 2004 1.62 25,000 24,972 November 2, 2004 1.68 85,500 85,368 November 18, 2004 1.77 22,000 21,947 Private Export Funding Corp. (1) October 21, 2004 1.73 36,000 35,964 Procter & Gamble Co. (1) November 1, 2004 1.73 100,000 99,846 November 2, 2004 1.74 50,000 49,920 November 17, 2004 1.75 50,000 49,883 Ranger Funding Co. LLC (1) October 19, 2004 1.72 40,000 39,964 November 4, 2004 1.79 80,000 79,859 Receivables Capital Co., LLC (1) October 1, 2004 1.59 30,000 29,999 Shell Finance (U.K.) PLC October 1, 2004 1.50 25,000 24,999 October 15, 2004 1.62 50,000 49,966 Societe Generale N.A. Inc. October 4, 2004 1.51 50,000 49,991 November 18, 2004 1.78 40,000 39,904 Spintab AB (Swedmortgage) October 5, 2004 1.50 50,000 49,990 November 9, 2004 1.73 50,000 49,903 November 12, 2004 1.73 50,000 49,897 Stadshypotek Delaware Inc. (1) November 22, 2004 1.79 50,000 49,866 Svenska Handelsbanken Inc. November 15, 2004 1.72 50,000 49,888 Three Pillars Funding, LLC (1) October 1, 2004 1.61 50,000 49,998 October 20, 2004 1.77 40,000 39,961 October 26, 2004 1.78 35,000 34,955 Total Capital SA (1) October 4, 2004 1.62 50,000 49,991 November 12, 2004 1.70 50,000 49,898 Toyota Motor Credit Corp. October 5, 2004 1.52 50,000 49,989 October 26, 2004 1.67 30,000 29,964 November 19, 2004 1.78 40,000 39,902 Toyota Credit de Puerto Rico Corp. October 26, 2004 1.76 30,000 29,962 Triple-A One Funding Corp. (1) October 4, 2004 1.66 25,000 24,995 October 20, 2004 1.76 75,262 75,189 October 25, 2004 1.61 25,000 24,972 UBS Finance (Delaware) LLC October 19, 2004 1.58 50,000 49,958 November 24, 2004 1.81 50,000 49,863 Unilever Capital Corp. (1) November 15, 2004 1.75 50,000 49,888 Variable Funding Capital Corp. (1) October 12, 2004 1.67 50,000 49,972 November 4, 2004 1.77 50,000 49,914 November 19, 2004 1.80 100,000 99,750 Wal-Mart Stores Inc. (1) October 5, 2004 1.50 41,000 40,991 October 12, 2004 1.54 49,000 48,975 October 25, 2004 1.63 65,000 64,926 October 26, 2004 1.74 15,000 14,981 November 2, 2004 1.67 30,000 29,954 Total commercial paper 6,906,448 FEDERAL AGENCY DISCOUNT NOTES - 11.35% Fannie Mae October 13, 2004 1.50 50,000 49,972 October 14, 2004 1.51 50,000 49,970 November 8, 2004 1.69 50,000 49,908 November 9, 2004 1.73 50,000 49,904 Federal Farm Credit Banks October 18, 2004 1.62 50,000 49,960 November 5, 2004 1.60 50,000 49,920 Federal Home Loan Bank October 20, 2004 1.55 47,200 47,151 October 22, 2004 1.54 42,500 42,460 October 27, 2004 1.60 105,000 104,876 November 24, 2004 1.77 50,000 49,847 November 26, 2004 1.78 50,000 49,860 Freddie Mac October 21, 2004 1.55 50,000 49,954 October 25, 2004 1.58 28,500 28,470 November 22, 2004 1.73 71,500 71,314 International Bank for Reconstruction and Development October 12, 2004 1.52 50,000 49,975 November 19, 2004 1.71 50,000 49,881 November 29, 2004 1.73 50,000 49,851 Sallie Mae (2) October 21, 2004 1.00 25,000 25,000 Tennessee Valley Authority October 7, 2004 1.52 42,500 42,487 October 21, 2004 1.60 50,000 49,953 Total federal agency discount notes 1,010,713 U.S. TREASURIES - 7.14% U.S. Treasury Bills October 7, 2004 1.36 211,800 211,747 October 14, 2004 1.36 250,000 249,876 October 28, 2004 1.42 75,000 74,921 November 18, 2004 1.57 50,000 49,896 November 26, 2004 1.68 50,000 49,882 TOTAL U.S. TREASURIES 636,322 TOTAL INVESTMENT SECURITIES (cost: $8,903,584,000) 8,903,476 Other assets less liabilities 1,572 NET ASSETS $8,905,048
(1) Restricted security that can be resold only to institutional investors. In practice, these securities are typically as liquid as unrestricted securities in the portfolio. The total value of all such restricted securities was $3,238,244,000, which represented 36.36% of the net assets of the fund. (2) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date. See Notes to Financial Statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES at September 30, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market: (cost: $8,903,584) $8,903,476 Cash 5,827 Receivables for: Sales of fund's shares $57,682 Interest 716 Reimbursement of expenses from investment adviser 1,040 59,438 8,968,741 LIABILITIES: Payables for: Repurchases of fund's shares 60,639 Dividends on fund's shares 252 Services provided by affiliates 2,685 Deferred Trustees' compensation 49 Other fees and expenses 68 63,693 NET ASSETS AT SEPTEMBER 30, 2004 $8,905,048 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $8,905,158 Distributions in excess of net investment income (2) Net unrealized depreciation (108) NET ASSETS AT SEPTEMBER 30, 2004 $8,905,048
Shares of beneficial interest issued and outstanding - unlimited shares authorized, 8,905,156 total shares outstanding Net asset value Net assets Shares outstanding per share Class A $7,766,014 7,766,109 $1.00 Class B 156,709 156,711 1.00 Class C 104,107 104,108 1.00 Class F 38,787 38,788 1.00 Class 529-A 112,157 112,158 1.00 Class 529-B 2,007 2,006 1.00 Class 529-C 5,669 5,669 1.00 Class 529-E 5,291 5,291 1.00 Class 529-F 3,239 3,239 1.00 Class R-1 9,868 9,868 1.00 Class R-2 348,495 348,499 1.00 Class R-3 210,514 210,517 1.00 Class R-4 64,972 64,973 1.00 Class R-5 77,219 77,220 1.00
See Notes to Financial Statements STATEMENT OF OPERATIONS for the year ended September 30, 2004 (dollars in thousands) INVESTMENT INCOME: Income: Interest $96,564 Fees and expenses: Investment advisory services $23,838 Distribution services 11,509 Transfer agent services 13,009 Administrative services 3,265 Reports to shareholders 386 Registration statement and prospectus 634 Postage, stationery and supplies 2,020 Trustees' compensation 56 Auditing and legal 132 Custodian 194 State and local taxes 13 Other 52 Total expenses before reimbursement 55,108 Reimbursement of expenses 25,046 30,062 Net investment income 66,502 NET UNREALIZED DEPRECIATION ON INVESTMENTS (89) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $66,413 See Notes to Financial Statements STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2004 2003 OPERATIONS: Net investment income $66,502 $91,848 Net unrealized depreciation on investments (89) (4) Net increase in net assets resulting from operations 66,413 91,844 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME (66,502) (91,828) CAPITAL SHARE TRANSACTIONS 174,556 32,809 TOTAL INCREASE IN NET ASSETS 174,467 32,825 NET ASSETS: Beginning of year 8,730,581 8,697,756 End of year $8,905,048 $8,730,581 See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Cash Management Trust of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality, short-term money market instruments. The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica(R) savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) are sponsored by the Commonwealth of Virginia and can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund's share classes are described below: --------------------------------------------------------------------------------------------------------- Share class Initial sales charge Contingent deferred sales Conversion feature charge upon redemption --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Classes A and 529-A None None None --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Classes B and 529-B None Declines from 5% to zero Classes B and 529-B convert to for redemptions within classes A and 529-A, six years of purchase respectively, after eight years --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Class C None 1% for redemptions within Class C converts to Class F one year of purchase after 10 years --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Class 529-C None 1% for redemptions within None one year of purchase --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Class 529-E None None None --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Classes F and 529-F None None None --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- Classes R-1, R-2, R-3, None None None R-4 and R-5 ---------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities purchased with greater than 60 days to maturity with 60 days or less remaining to maturity is determined based on the market value on the 61st day. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the fund's Board of Trustees. Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONs The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2004, the cost of investment securities for federal income tax purposes was $8,903,584,000. During the year ended September 30, 2004, the fund reclassified $2,000 from distributions in excess of net investment income to additional paid-in capital to align financial reporting with tax reporting. As of September 30, 2004, the components of distributable earnings on a tax basis were as follows (dollars in thousands): Undistributed net investment income $299 Gross unrealized appreciation on investment securities 34 Gross unrealized depreciation on investment securities (142) Net unrealized depreciation on investment securities (108)
Distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): Share class Year ended September 30, 2004 Year ended September 30, 2003 Class A $ 64,312 $ 90,058 Class B 173 252 Class C 86 127 Class F 90 67 Class 529-A 482 425 Class 529-B 1 1 Class 529-C 5 3 Class 529-E 7 7 Class 529-F 7 4 Class R-1 10 5 Class R-2 294 139 Class R-3 292 167 Class R-4 217 96 Class R-5 526 477 Total $ 66,502 $ 91,828
3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.320% on the first $1 billion of daily net assets and decreasing to 0.270% on such assets in excess of $2 billion. For the year ended September 30, 2004, the investment advisory services fee was $23,838,000, which was equivalent to an annualized rate of 0.278% of average daily net assets. The Investment Advisory and Service Agreement also provides that CRMC will reimburse the fund's expenses to the extent that annual operating expenses for Class A shares exceed 25% of gross income. Expenses related to interest, taxes, brokerage commissions and extraordinary items are not subject to these limitations. Low income levels, caused by the decline in short-term interest rates, have resulted in expenses exceeding this limit. To the extent that management fees were reimbursed, they were reimbursed similarly for all share classes of the fund. During the year ended September 30, 2004, these reimbursements totaled $21,909,000. It is likely that expenses will continue to be reimbursed while short-term interest rates remain low. The amount of reimbursement during any period will vary in accordance with the fund's gross income and expense levels. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. All share classes may use a portion (0.15% for classes A, B, 529-A and 529-B shares and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. ------------------------------------------------ ----------------------------- ----------------------------- Share class Currently approved limits Plan limits ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class A 0.15% 0.15% ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class 529-A 0.15 0.50 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes B and 529-B 0.90 0.90 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes C, 529-C and R-1 1.00 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-2 0.75 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes 529-E and R-3 0.50 0.75 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Classes F, 529-F and R-4 0.25 0.50 ------------------------------------------------ ----------------------------- -----------------------------
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than classes A and B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the year ended September 30, 2004, CRMC agreed to pay a portion of these fees for classes R-1, R-2 and R-3. For the year ended September 30, 2004, the total fees paid by CRMC were $891,000. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees in the accompanying financial statements, the Commonwealth of Virginia is not considered a related party. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the year ended September 30, 2004, were as follows (dollars in thousands): -------------------------------------------------------------------------------------------------------------- Share class Distribution Transfer agent Administrative services services services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- CRMC Transfer agent Commonwealth of administrative services Virginia services administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class A $5,951 $12,829 Not applicable Not applicable Not applicable -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class B 1,334 180 Not applicable Not applicable Not applicable -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class C 826 Included $124 $34 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class F 37 Included 22 3 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-A 60 Included 152 41 $102 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-B 12 Included 2 1 1 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-C 44 Included 7 2 4 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-E 24 Included 7 2 5 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-F 6 Included 4 1 3 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-1 94 Included 14 10 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-2 2,115 Included 423 1,575 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-3 889 Included 281 287 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-4 117 Included 70 5 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-5 Not applicable Included 70 13 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Total $11,509 $13,009 $1,176 $1,974 $115 --------------------------------------------------------------------------------------------------------------
Due to lower short-term interest rates, CRMC agreed to pay a portion of the class-specific fees and expenses. For the year ended September 30, 2004, the total fees paid by CRMC for classes B, C, 529-B, 529-C, 529-E, 529-F, R-1, R-2 and R-3 were $2,246,000. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Share class Sales(1) Reinvestments of dividends Amount Shares Amount Shares Year ended September 30, 2004 Class A $ 13,520,809 13,520,809 $ 61,845 61,845 Class B 154,993 154,993 157 157 Class C 192,284 192,284 77 77 Class F 103,416 103,416 82 82 Class 529-A 108,238 108,238 475 475 Class 529-B 2,040 2,040 1 1 Class 529-C 5,325 5,325 4 4 Class 529-E 4,489 4,489 7 7 Class 529-F 3,316 3,316 7 7 Class R-1 30,040 30,040 9 9 Class R-2 1,008,066 1,008,066 279 279 Class R-3 546,922 546,922 282 282 Class R-4 163,157 163,157 208 208 Class R-5 184,623 184,623 497 497 Total net increase (decrease) $ 16,027,718 16,027,718 $ 63,930 63,930 Year ended September 30, 2003 Class A $ 15,232,335 15,232,335 $ 86,266 86,266 Class B 233,546 233,546 232 232 Class C 470,206 470,206 112 112 Class F 130,042 130,042 36 36 Class 529-A 115,515 115,515 416 416 Class 529-B 1,235 1,235 1 1 Class 529-C 4,360 4,360 3 3 Class 529-E 5,577 5,577 6 6 Class 529-F 3,376 3,376 4 4 Class R-1 17,203 17,203 5 5 Class R-2 852,833 852,833 124 124 Class R-3 567,375 567,375 155 155 Class R-4 62,875 62,875 92 92 Class R-5 116,674 116,674 447 447 Total net increase (decrease) $ 17,813,152 17,813,152 $ 87,899 87,899 Share class Repurchases(1) Net (decrease) increase Amount Shares Amount Shares Year ended September 30, 2004 Class A $ (13,726,229) (13,726,229) $ (143,575) (143,575) Class B (171,364) (171,364) (16,214) (16,214) Class C (176,973) (176,973) 15,388 15,388 Class F (72,052) (72,052) 31,446 31,446 Class 529-A (85,852) (85,852) 22,861 22,861 Class 529-B (1,117) (1,117) 924 924 Class 529-C (3,117) (3,117) 2,212 2,212 Class 529-E (3,819) (3,819) 677 677 Class 529-F (2,402) (2,402) 921 921 Class R-1 (27,861) (27,861) 2,188 2,188 Class R-2 (865,474) (865,474) 142,871 142,871 Class R-3 (474,880) (474,880) 72,324 72,324 Class R-4 (124,548) (124,548) 38,817 38,817 Class R-5 (181,404) (181,404) 3,716 3,716 Total net increase (decrease) $ (15,917,092) (15,917,092) $ 174,556 174,556 Year ended September 30, 2003 Class A $ (15,714,246) (15,714,246) $ (395,645) (395,645) Class B (218,968) (218,968) 14,810 14,810 Class C (481,173) (481,173) (10,855) (10,855) Class F (133,112) (133,112) (3,034) (3,034) Class 529-A (60,929) (60,929) 55,002 55,002 Class 529-B (517) (517) 719 719 Class 529-C (1,894) (1,894) 2,469 2,469 Class 529-E (2,336) (2,336) 3,247 3,247 Class 529-F (1,063) (1,063) 2,317 2,317 Class R-1 (10,483) (10,483) 6,725 6,725 Class R-2 (669,787) (669,787) 183,170 183,170 Class R-3 (444,141) (444,141) 123,389 123,389 Class R-4 (37,312) (37,312) 25,655 25,655 Class R-5 (92,281) (92,281) 24,840 24,840 Total net increase (decrease) $ (17,868,242) (17,868,242) $ 32,809 32,809 (1) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2004, the custodian fee of $194,000 included $1,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income(2) income of period Class A: Year ended 9/30/2004 $1.00 $.008 $(.008) $1.00 Year ended 9/30/2003 1.00 .011 (.011) 1.00 Year ended 9/30/2002 1.00 .013 (.013) 1.00 Year ended 9/30/2001 1.00 .045 (.045) 1.00 Year ended 9/30/2000 1.00 .055 (.055) 1.00 Class B: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Year ended 9/30/2002 1.00 .005 (.005) 1.00 Year ended 9/30/2001 1.00 .037 (.037) 1.00 Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00 Class C: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Year ended 9/30/2002 1.00 .004 (.004) 1.00 Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00 Class F: Year ended 9/30/2004 1.00 .004 (.004) 1.00 Year ended 9/30/2003 1.00 .006 (.006) 1.00 Year ended 9/30/2002 1.00 .011 (.011) 1.00 Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00 Class 529-A: Year ended 9/30/2004 1.00 .005 (.005) 1.00 Year ended 9/30/2003 1.00 .007 (.007) 1.00 Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00 Class 529-B: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class 529-C: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Class 529-E: Year ended 9/30/2004 1.00 .002 (.002) 1.00 Year ended 9/30/2003 1.00 .002 (.002) 1.00 Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00 Class 529-F: Year ended 9/30/2004 1.00 .003 (.003) 1.00 Year ended 9/30/2003 1.00 .004 (.004) 1.00 Period from 9/16/2002 to 9/30/2002 1.00 - (7) - (7) 1.00 FINANCIAL HIGHLIGHTS (1) (continued) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income(2) income of period Class R-1: Year ended 9/30/2004 $1.00 $.001 $(.001) $1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-2: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-3: Year ended 9/30/2004 1.00 .002 (.002) 1.00 Year ended 9/30/2003 1.00 .002 (.002) 1.00 Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Class R-4: Year ended 9/30/2004 1.00 .004 (.004) 1.00 Year ended 9/30/2003 1.00 .006 (.006) 1.00 Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Class R-5: Year ended 9/30/2004 1.00 .007 (.007) 1.00 Year ended 9/30/2003 1.00 .009 (.009) 1.00 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00
FINANCIAL HIGHLIGHTS (1) Ratio of expenses Ratio of expenses Ratio of Net assets, to average net to average net net income Total end of period assets before assets after to average return (3) (in millions) reimbursements reimbursements (4) net assets Class A: Year ended 9/30/2004 .84% $7,766 .57% .28% .84% Year ended 9/30/2003 1.05 7,910 .55 .23 1.05 Year ended 9/30/2002 1.35 8,305 .59 .59 1.33 Year ended 9/30/2001 4.63 7,075 .59 .59 4.48 Year ended 9/30/2000 5.66 5,417 .61 .61 5.53 Class B: Year ended 9/30/2004 .12 157 1.34 1.02 .12 Year ended 9/30/2003 .13 173 1.38 1.14 .14 Year ended 9/30/2002 .53 158 1.40 1.40 .47 Year ended 9/30/2001 3.75 46 1.41 1.41 3.01 Period from 3/15/2000 to 9/30/2000 2.73 1 1.43 (5) 1.43 (5) 5.21 (5) Class C: Year ended 9/30/2004 .10 104 1.51 1.05 .10 Year ended 9/30/2003 .12 89 1.55 1.16 .12 Year ended 9/30/2002 .40 100 1.55 1.51 .31 Period from 3/16/2001 to 9/30/2001 1.40 13 1.55 (5) 1.55 (5) 2.05 (5) Class F: Year ended 9/30/2004 .41 39 .72 .71 .61 Year ended 9/30/2003 .55 7 .73 .73 .58 Year ended 9/30/2002 1.13 10 .77 .77 1.11 Period from 3/26/2001 to 9/30/2001 1.71 4 .80 (5) .80 (5) 3.09 (5) Class 529-A: Year ended 9/30/2004 .47 112 .67 .66 .48 Year ended 9/30/2003 .66 89 .62 .62 .61 Period from 2/15/2002 to 9/30/2002 .73 34 .60 (5) .60 (5) 1.16 (5) Class 529-B: Year ended 9/30/2004 .10 2 1.53 1.06 .10 Year ended 9/30/2003 .12 1 1.52 1.13 .12 Period from 6/7/2002 to 9/30/2002 .09 - (6) .47 .47 .08 Class 529-C: Year ended 9/30/2004 .10 6 1.63 1.05 .10 Year ended 9/30/2003 .12 3 1.62 1.11 .11 Period from 4/2/2002 to 9/30/2002 .15 1 .79 .75 .12 Class 529-E: Year ended 9/30/2004 .15 5 1.11 .98 .15 Year ended 9/30/2003 .22 5 1.11 1.05 .17 Period from 3/11/2002 to 9/30/2002 .39 1 1.09 (5) 1.09 (5) .66 (5) Class 529-F: Year ended 9/30/2004 .28 3 .86 .85 .30 Year ended 9/30/2003 .43 2 .85 .85 .33 Period from 9/16/2002 to 9/30/2002 .04 - (6) .03 .03 .04 FINANCIAL HIGHLIGHTS (1) (continued) Ratio of expenses Ratio of expenses Ratio of Net assets, to average net to average net net income Total end of period assets before assets after to average return (in millions) reimbursements reimbursements (4) net assets Class R-1: Year ended 9/30/2004 .10% $10 1.56% 1.03% .10% Year ended 9/30/2003 .12 8 1.61 1.08 .10 Period from 5/29/2002 to 9/30/2002 .10 1 .71 .51 .09 Class R-2: Year ended 9/30/2004 .11 348 1.76 1.03 .11 Year ended 9/30/2003 .12 206 1.68 1.08 .11 Period from 5/21/2002 to 9/30/2002 .11 23 .57 .52 .11 Class R-3: Year ended 9/30/2004 .16 211 1.12 .97 .16 Year ended 9/30/2003 .23 138 1.10 1.03 .17 Period from 6/4/2002 to 9/30/2002 .22 15 .37 .34 .22 Class R-4: Year ended 9/30/2004 .43 65 .71 .70 .46 Year ended 9/30/2003 .55 26 .72 .72 .48 Period from 6/27/2002 to 9/30/2002 .23 1 .30 .19 .27 Class R-5: Year ended 9/30/2004 .72 77 .42 .40 .75 Year ended 9/30/2003 .87 74 .41 .41 .84 Period from 5/15/2002 to 9/30/2002 .50 49 .16 .16 .50
(1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Based on average shares outstanding. (3) Total returns exclude all sales charges, including contingent deferred sales charges. (4) The ratios in this column reflect the impact, if any, of certain reimbursements from CRMC. During some of the periods shown, CRMC reimbursed expenses, as provided by the Investment Advisory and Service Agreement. During the start-up period for the retirement plan share classes (except Class R-5), CRMC agreed to pay a portion of the fees related to transfer agent services. In addition, during some of the periods shown, due to lower short-term interest rates, CRMC agreed to pay a portion of the class-specific fees and expenses for some of the share classes. (5) Annualized. (6) Amount less than $1 million. (7) Amount less than $.001. See Notes to Financial Statements REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE CASH MANAGEMENT TRUST OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Cash Management Trust of America (the "Fund") at September 30, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2004 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Los Angeles, California October 29, 2004 TAX INFORMATION (unaudited) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The information below is provided for the fund's fiscal year ending September 30, 2004. Certain states may exempt from income taxation that portion of dividends paid by the fund from ordinary income that was derived from direct U.S. government obligations. For purposes of computing this exclusion, $8,877,000 of the dividends paid by the fund from ordinary income earned during the fiscal year were derived from interest on direct U.S. government obligations. Dividends and distributions received by retirement plans such as IRAs, Keogh-type plans and 403(b) plans need not be reported as taxable income. However, many retirement plan trusts may need this information for their annual information reporting. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. OTHER SHARE CLASS RESULTS (unaudited) CLASS B, CLASS C, CLASS F AND CLASS 529 Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For the most current information and month-end results, visit americanfunds.com. Returns for periods ended September 30, 2004: 1 year Life of class CLASS B SHARES Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%, payable only if shares are sold within six years of purchase -4.88% +1.16%(1) Not reflecting CDSC +0.12% +1.58%(1) CLASS C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase -0.90% +0.57%(2) Not reflecting CDSC +0.10% +0.57%(2) CLASS F SHARES(3) Not reflecting annual asset-based fee charged by sponsoring firm +0.41% +1.08%(4) CLASS 529-A SHARES +0.47% +0.71%(5) CLASS 529-B SHARES Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase -4.90% -1.61%(6) Not reflecting CDSC +0.10% +0.14%(6) CLASS 529-C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase -0.90% +0.15%(7) Not reflecting CDSC +0.10% +0.15%(7) CLASS 529-E SHARES(3) +0.15% +0.30%(8) CLASS 529-F SHARES(3) Not reflecting annual asset-based fee charged by sponsoring firm +0.28% +0.37%(9)
(1) Average annual total return from March 15, 2000, when Class B shares were first sold. (2) Average annual total return from March 16, 2001, when Class C shares were first sold. (3) These shares are sold without any initial or contingent deferred sales charge. (4) Average annual total return from March 26, 2001, when Class F shares were first sold. (5) Average annual total return from February 15, 2002, when Class 529-A shares were first sold. (6) Average annual total return from June 7, 2002, when Class 529-B shares were first sold. (7) Average annual total return from April 2, 2002, when Class 529-C shares were first sold. (8) Average annual total return from March 11, 2002, when Class 529-E shares were first sold. (9) Average annual total return from September 16, 2002, when Class 529-F shares were first sold. EXPENSE EXAMPLE (unaudited) As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2004 through September 30, 2004). ACTUAL EXPENSES: The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.50% to 3.00% of assets annually depending on services offered. You may use the information in the table on the next page to estimate the impact of these fees by adding the amount of the fees to the number in the first line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the first line under the heading entitled "Ending account value." HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain shareholders, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.50% to 3.00% of assets annually depending on services offered. You may use the information in the table on the next page to estimate the impact of these fees by adding the amount of the fees to the number in the second line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the second line under the heading entitled "Ending account value." Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning account Ending account Expenses paid Annualized value 4/1/2004 value 9/30/2004 during period(1) expense ratio Class A -- actual return $ 1,000.00 $1,004.90 $1.21 .24% Class A -- assumed 5% return 1,000.00 1,023.87 1.22 .24 Class B -- actual return 1,000.00 1,000.65 5.47 1.09 Class B -- assumed 5% return 1,000.00 1,019.60 5.52 1.09 Class C -- actual return 1,000.00 1,000.53 5.67 1.13 Class C -- assumed 5% return 1,000.00 1,019.40 5.72 1.13 Class F -- actual return 1,000.00 1,002.45 3.56 .71 Class F -- assumed 5% return 1,000.00 1,021.51 3.60 .71 Class 529-A -- actual return 1,000.00 1,002.70 3.41 .68 Class 529-A -- assumed 5% return 1,000.00 1,021.66 3.45 .68 Class 529-B -- actual return 1,000.00 1,000.53 5.72 1.14 Class 529-B -- assumed 5% return 1,000.00 1,019.35 5.77 1.14 Class 529-C -- actual return 1,000.00 1,000.51 5.67 1.13 Class 529-C -- assumed 5% return 1,000.00 1,019.40 5.72 1.13 Class 529-E -- actual return 1,000.00 1,001.00 5.12 1.02 Class 529-E -- assumed 5% return 1,000.00 1,019.95 5.16 1.02 Class 529-F -- actual return 1,000.00 1,001.78 4.32 .86 Class 529-F -- assumed 5% return 1,000.00 1,020.76 4.36 .86 Class R-1 -- actual return 1,000.00 1,000.53 5.57 1.11 Class R-1 -- assumed 5% return 1,000.00 1,019.50 5.62 1.11 Class R-2 -- actual return 1,000.00 1,000.55 5.62 1.12 Class R-2 -- assumed 5% return 1,000.00 1,019.45 5.67 1.12 Class R-3 -- actual return 1,000.00 1,001.05 5.07 1.01 Class R-3 -- assumed 5% return 1,000.00 1,020.00 5.11 1.01 Class R-4 -- actual return 1,000.00 1,002.55 3.56 .71 Class R-4 -- assumed 5% return 1,000.00 1,021.51 3.60 .71 Class R-5 -- actual return 1,000.00 1,004.01 2.06 .41 Class R-5 -- assumed 5% return 1,000.00 1,023.01 2.08 .41 (1) Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (183) and divided by 365 (to reflect the one-half year period).
THE U.S. TREASURY MONEY FUND OF AMERICA INVESTMENT PORTFOLIO September 30, 2004 Principal Market Yield at amount value SHORT-TERM SECURITIES - 100.26% acquisition (000) (000) U.S. Treasuries - 100.26% U.S. Treasury Bills 10-7-04 1.29%-1.56% $94,810 $94,786 U.S. Treasury Bills 10-14-04 1.39%-1.57% 28,700 28,685 U.S. Treasury Bills 10-21-04 1.38%-1.43% 72,110 72,055 U.S. Treasury Bills 10-28-04 1.40%-1.58% 57,470 57,410 U.S. Treasury Bills 11-4-04 1.47%-1.48% 72,100 72,003 U.S. Treasury Bills 11-12-04 1.47%-1.49% 6,755 6,743 U.S. Treasury Bills 12-2-04 1.62%-1.64% 76,600 76,394 U.S. Treasury Bills 12-9-04 1.63%-1.66% 123,750 123,371 U.S. Treasury Bills 12-16-04 1.66% 50,000 49,833 TOTAL INVESTMENT SECURITIES (cost: $581,244,000) 581,280 Other assets less liabilities (1,519) NET ASSETS $579,761 See Notes to Financial Statements
FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES at September 30, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market: (cost: $581,244) $581,280 Cash 732 Receivables for sales of fund's shares 619 582,631 LIABILITIES: Payables for: Repurchases of fund's shares $2,518 Dividends on fund's shares 14 Investment advisory services 133 Services provided by affiliates 165 Deferred Trustees' compensation 21 Other fees and expenses 19 2,870 NET ASSETS AT SEPTEMBER 30, 2004 $579,761 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $579,726 Distributions in excess of net investment income (1) Net unrealized appreciation 36 NET ASSETS AT SEPTEMBER 30, 2004 $579,761
Shares of beneficial interest issued and outstanding - unlimited shares authorized, 579,725 total shares outstanding Net assets Shares outstanding Net asset value per share Class A $532,287 532,254 $1.00 Class R-1 1,076 1,076 1.00 Class R-2 21,978 21,977 1.00 Class R-3 15,736 15,734 1.00 Class R-4 2,185 2,185 1.00 Class R-5 6,499 6,499 1.00 See Notes to Financial Statements
STATEMENT OF OPERATIONS for the year ended September 30, 2004 (dollars in thousands) INVESTMENT INCOME: Income: Interest $5,957 Fees and expenses: Investment advisory services $1,782 Distribution services 779 Transfer agent services 812 Administrative services 183 Reports to shareholders 25 Registration statement and prospectus 90 Postage, stationery and supplies 143 Trustees' compensation 26 Auditing and legal 76 Custodian 20 State and local taxes 8 Other 3 Total expenses before reimbursement/waiver 3,947 Reimbursement/waiver of expenses 210 3,737 Net investment income 2,220 NET UNREALIZED APPRECIATION ON INVESTMENTS 7 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,227 See Notes to Financial Statements STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2004 2003 OPERATIONS: Net investment income $2,220 $4,537 Net unrealized appreciation on investments 7 13 Net increase in net assets resulting from operations 2,227 4,550 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME: (2,219) (4,538) CAPITAL SHARE TRANSACTIONS (83,761) (24,951) TOTAL DECREASE IN NET ASSETS (83,753) (24,939) NET ASSETS: Beginning of year 663,514 688,453 End of year $579,761 $663,514 See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The U.S. Treasury Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. The fund offers six share classes consisting of one retail share class (Class A) and five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5). All share classes are sold without any sales charges and do not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities purchased with greater than 60 days to maturity with 60 days or less remaining to maturity is determined based on the market value on the 61st day. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the fund's Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONs The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2004, the cost of investment securities for federal income tax purposes was $581,244,000. As of September 30, 2004, the components of distributable earnings on a tax basis were as follows (dollars in thousands): Undistributed net investment income $34 Gross unrealized appreciation on investment securities 36
Distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): Share class Year ended September 30, 2004 Year ended September 30, 2003 Class A $ 2,147 $ 4,486 Class R-1 1 -* Class R-2 19 10 Class R-3 16 8 Class R-4 5 4 Class R-5 31 30 Total $ 2,219 $ 4,538 * Amount less than one thousand.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on an annual rate of 0.300% on the first $800 million of daily net assets and 0.285% on such assets in excess of $800 million. During the year ended September 30, 2004, CRMC reduced investment advisory services fees by $7,000. As a result, the fee shown on the accompanying financial statements of $1,782,000, which was equivalent to an annualized rate of 0.300%, was reduced to $1,775,000, or 0.299% of average daily net assets. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. All share classes may use a portion (0.15% for Class A and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. ------------------------------------------------ ----------------------------- ----------------------------- Share class Currently approved limits Plan limits ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class A 0.15% 0.15% ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-1 1.00 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-2 0.75 1.00 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-3 0.50 0.75 ------------------------------------------------ ----------------------------- ----------------------------- ------------------------------------------------ ----------------------------- ----------------------------- Class R-4 0.25 0.50 ------------------------------------------------ ----------------------------- -----------------------------
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A shares. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than Class A. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the year ended September 30, 2004, CRMC agreed to pay a portion of these fees for classes R-1, R-2 and R-3. For the year ended September 30, 2004, the total fees paid by CRMC were $59,000. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the year ended September 30, 2004, were as follows (dollars in thousands): ----------------------------------------------------------------------------------------- Share class Distribution Transfer agent Administrative services services services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- CRMC Transfer agent administrative services services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class A $564 $812 Not applicable Not applicable ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-1 7 Included in $1 $1 administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-2 139 Included in 28 106 administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-3 63 Included in 19 19 administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-4 6 Included in 3 1 administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-5 Not applicable Included in 5 -* administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Total $779 $812 $56 $127 ----------------------------------------------------------------------------------------- * Amount less than one thousand.
Due to lower short-term interest rates, CRMC agreed to pay a portion of the class-specific fees and expenses. For the year ended September 30, 2004, the total fees paid by CRMC for classes R-1, R-2, R-3 and R-4 were $144,000. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Share class Sales(1) Reinvestments of dividends Amount Shares Amount Shares Year ended September 30, 2004 Class A $ 432,833 432,833 $ 2,052 2,052 Class R-1 1,164 1,164 -* -* Class R-2 43,831 43,831 18 18 Class R-3 20,221 20,221 16 16 Class R-4 5,349 5,349 5 5 Class R-5 12,974 12,974 19 19 Total net increase (decrease) $ 516,372 516,372 $ 2,110 2,110 Year ended September 30, 2003 Class A $ 778,494 778,494 $ 4,259 4,259 Class R-1 382 382 -* -* Class R-2 49,988 49,988 9 9 Class R-3 35,967 35,967 6 6 Class R-4 6,541 6,541 4 4 Class R-5 6,797 6,797 15 15 Total net increase (decrease) $ 878,169 878,169 $ 4,293 4,293 Share class Repurchases(1) Net (decrease) increase Amount Shares Amount Shares Year ended September 30, 2004 Class A $ (533,936) (533,936) $ (99,051) (99,051) Class R-1 (419) (419) 745 745 Class R-2 (36,449) (36,449) 7,400 7,400 Class R-3 (15,625) (15,625) 4,612 4,612 Class R-4 (4,662) (4,662) 692 692 Class R-5 (11,152) (11,152) 1,841 1,841 Total net increase (decrease) $ (602,243) (602,243) $ (83,761) (83,761) Year ended September 30, 2003 Class A $ (834,303) (834,303) $ (51,550) (51,550) Class R-1 (270) (270) 112 112 Class R-2 (36,844) (36,844) 13,153 13,153 Class R-3 (24,898) (24,898) 11,075 11,075 Class R-4 (5,101) (5,101) 1,444 1,444 Class R-5 (5,997) (5,997) 815 815 Total net increase (decrease) $ (907,413) (907,413) $ (24,951) (24,951)
* Amount less than one thousand. (1) Includes exchanges between share classes of the fund. 5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2004, the custodian fee of $20,000 included $2,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income (2) income of period Class A: Year ended 9/30/2004 $1.00 $.004 $(.004) $1.00 Year ended 9/30/2003 1.00 .006 (.006) 1.00 Year ended 9/30/2002 1.00 .013 (.013) 1.00 Year ended 9/30/2001 1.00 .042 (.042) 1.00 Year ended 9/30/2000 1.00 .049 (.049) 1.00 Class R-1: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-2: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .001 (.001) 1.00 Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-3: Year ended 9/30/2004 1.00 .001 (.001) 1.00 Year ended 9/30/2003 1.00 .002 (.002) 1.00 Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00 Class R-4: Year ended 9/30/2004 1.00 .002 (.002) 1.00 Year ended 9/30/2003 1.00 .004 (.004) 1.00 Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 Class R-5: Year ended 9/30/2004 1.00 .006 (.006) 1.00 Year ended 9/30/2003 1.00 .008 (.008) 1.00 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00
Ratio of expenses Ratio of expenses Ratio of Net assets, to average net assets to average net assets net income Total end of period before reimbursement/ after reimbursement/ to average return (in millions) waiver waiver ( net assets Class A: Year ended 9/30/2004 .39% $532 .62% .61% .39% Year ended 9/30/2003 .63 631 .58 .58 .63 Year ended 9/30/2002 1.29 683 .63 .63 1.27 Year ended 9/30/2001 4.27 489 .66 .66 4.12 Year ended 9/30/2000 5.01 369 .62 .62 4.81 Class R-1: Year ended 9/30/2004 .10 1 1.63 .94 .10 Year ended 9/30/2003 .12 - (4) 1.91 1.08 .12 Period from 7/12/2002 to 9/30/2002 .11 - (4) .54 .32 .05 Class R-2: Year ended 9/30/2004 .10 22 1.81 .92 .10 Year ended 9/30/2003 .12 15 1.74 1.02 .10 Period from 6/11/2002 to 9/30/2002 .08 1 .50 .44 .08 Class R-3: Year ended 9/30/2004 .12 16 1.14 .89 .13 Year ended 9/30/2003 .18 11 1.17 .99 .11 Period from 8/16/2002 to 9/30/2002 .07 - (4) .20 .13 .07 Class R-4: Year ended 9/30/2004 .24 2 .77 .76 .23 Year ended 9/30/2003 .43 2 .79 .77 .36 Period from 8/2/2002 to 9/30/2002 .17 - (4) .33 .12 .15 Class R-5: Year ended 9/30/2004 .55 7 .45 .45 .57 Year ended 9/30/2003 .75 5 .46 .46 .73 Period from 5/15/2002 to 9/30/2002 .47 4 .18 .18 .46
(1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Based on average shares outstanding. (3) The ratios in this column reflect the impact, if any, of certain reimbursements/waivers from CRMC. During the year ended 9/30/2004, CRMC reduced fees for investment advisory services for all share classes. During the start-up period for the retirement plan share classes (except Class R-5), CRMC agreed to pay a portion of the fees related to transfer agent services. In addition, during some of the periods shown, due to lower short-term interest rates, CRMC agreed to pay a portion of the class-specific fees and expenses for some of the share classes. (4) Amount less than $1 million. See Notes to Financial Statements REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE U.S. TREASURY MONEY FUND OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The U.S. Treasury Money Fund of America (the "Fund") at September 30, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2004 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLC Los Angeles, California October 29, 2004 TAX INFORMATION (unaudited) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The information below is provided for the fund's fiscal year ending September 30, 2004. Certain states may exempt from income taxation that portion of dividends paid by the fund from ordinary income that was derived from direct U.S. government obligations. For purposes of computing this exclusion, all of the dividends paid by the fund from ordinary income earned during the fiscal year were derived from interest on direct U.S. government obligations. Dividends and distributions received by retirement plans such as IRAs, Keogh-type plans and 403(b) plans need not be reported as taxable income. However, many retirement plan trusts may need this information for their annual information reporting. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. EXPENSE EXAMPLE (unaudited) As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2004 through September 30, 2004). ACTUAL EXPENSES: The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor. You may use the information in the table on the next page to estimate the impact of these fees by adding the amount of the fees to the number in the first line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the first line under the heading entitled "Ending account value." HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain shareholders, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor. You may use the information in the table on the next page to estimate the impact of these fees by adding the amount of the fees to the number in the second line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the second line under the heading entitled "Ending account value." Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning account Ending account Expenses paid Annualized value 4/1/2004 value 9/30/2004 during period(1) expense ratio Class A -- actual return $ 1,000.00 $1,002.50 $3.01 .60% Class A -- assumed 5% return 1,000.00 1,022.06 3.04 .60 Class R-1 -- actual return 1,000.00 1,000.51 5.07 1.01 Class R-1 -- assumed 5% return 1,000.00 1,020.00 5.11 1.01 Class R-2 -- actual return 1,000.00 1,000.51 5.01 1.00 Class R-2 -- assumed 5% return 1,000.00 1,020.05 5.06 1.00 Class R-3 -- actual return 1,000.00 1,000.72 4.87 .97 Class R-3 -- assumed 5% return 1,000.00 1,020.21 4.91 .97 Class R-4 -- actual return 1,000.00 1,001.71 3.76 .75 Class R-4 -- assumed 5% return 1,000.00 1,021.31 3.80 .75 Class R-5 -- actual return 1,000.00 1,003.30 2.21 .44 Class R-5 -- assumed 5% return 1,000.00 1,022.86 2.23 .44 (1) Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (183), and divided by 365 (to reflect the one-half year period).
THE TAX-EXEMPT MONEY FUND OF AMERICA INVESTMENT PORTFOLIO September 30, 2004 Principal Market Yield at amount value SHORT-TERM SECURITIES - 98.52% acquisition (000) (000) Alaska - 0.41% City of Valdez, Marine Terminal Rev. Ref. Bonds (BP Pipelines (Alaska) Inc. Project), Series 2001, 1.74% 7/1/37 (1) 1.74% $1,800 $1,800 Arizona - 2.89% Salt River Project Agricultural Improvement & Power Dist., Series B, TECP: 1.24% 10/8/04 1.24 4,300 4,300 1.24% 10/14/04 1.24 2,000 2,000 1.31% 11/15/04 1.31 5,000 4,991 1.40% 11/17/04 1.40 1,400 1,400 Connecticut - 0.36% Health and Educational Facs. Auth., Rev. Bonds, Yale University Issue, Series S-1, TECP, 1.36% 11/12/04 1.36 1,600 1,600 District of Columbia - 7.04% Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series 1999-A, TECP, AMT, 1.37% 11/12/04 1.37 4,100 4,100 Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000, TECP: 1.14% 10/6/04 1.14 2,000 2,000 1.14% 10/8/04 1.14 3,800 3,800 1.38% 11/8/04 1.38 2,500 2,500 1.34% 11/17/04 1.34 8,500 8,499 Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP: Series 1999-B: 1.40% 11/16/04 1.40 4,500 4,500 1.55% 11/23/04 1.55 3,500 3,500 Series 1999-C, 1.59% 11/30/04 1.59 2,000 2,000 Florida - 13.85% Cape Coral, TECP, 1.20% 10/7/04 1.20 1,500 1,500 Jacksonville County Electric Auth., Series 1993-C1, TECP: 1.13% 10/13/04 1.13 5,800 5,800 1.50% 10/22/04 1.50 2,349 2,349 1.48% 11/19/04 1.48 3,700 3,700 Mayo Foundation Health Care Facs. Rev. Ref. Bonds, Jacksonville Health Facs. Auth. (St. Luke's Hospital Assn.), Series 2001-B, TECP, 1.30% 10/7/04 1.30 3,500 3,500 Municipal Power Agcy., Initial Pooled Loan Project, Series 1995-A, TECP: 1.15% 10/5/04 1.15 4,300 4,300 1.14% 10/12/04 1.14 5,000 5,000 1.36% 10/27/04 1.36 1,000 1,000 Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled Independent Higher Education Institutions Loan Program), Series 1985, TECP: 1.17% 10/4/04 1.17 4,300 4,300 1.17% 10/5/04 1.17 4,300 4,300 1.14% 10/12/04 1.14 4,700 4,700 1.15% 10/12/04 1.15 1,700 1,700 Sarasota County Public Hospital Dist., Hospital Rev. Bonds (Sarasota Memorial Hospital Project), Series 1985-C, TECP: 1.42% 11/10/04 1.42 2,400 2,400 1.47% 11/17/04 1.47 2,500 2,500 1.55% 12/1/04 1.55 3,900 3,899 Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg. Program), AMBAC/FGIC insured, TECP: Series 2000-A, 1.13% 10/8/04 1.13 5,000 5,000 Series 2000-D: 1.25% 10/14/04 1.25 1,000 1,000 1.42% 11/16/04 1.42 2,450 2,450 1.50% 11/18/04 1.50 1,400 1,400 Georgia - 1.21% Municipal Electric Auth. of Georgia Power Project, TECP: Series 1985-A, 1.60% 10/15/04 1.60 2,300 2,300 Series 1985-B, 1.60% 10/15/04 1.60 3,000 3,000 Illinois - 0.27% City of Elmhurst, Rev. Bonds, Joint Commission on Accreditation of Healthcare Organizations, Series 1988, 1.70% 7/1/18 (1) 1.70 1,200 1,200 Indiana - 1.14% County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing Project), AMT: (1) Series 2000-A, 1.72% 1/1/30 1.72 2,000 2,000 Series 2000-B, 1.72% 9/1/31 1.72 2,000 2,000 City of Whiting, Environmental Facs. Rev. Bonds (BP Products North America Inc. Projects), Series 2003, AMT, 1.79% 1/1/38 (1) 1.79 1,000 1,000 Maine - 1.14% Municipal Bond Bank, Ref. Bonds, Series 2003-A, 4.00% 11/1/04 0.98 5,000 5,012 Maryland - 10.85% Baltimore County, Consolidated Public Improvement Bond Anticipation Notes, Series 1995, TECP: 1.11% 10/1/04 1.11 2,400 2,400 1.13% 10/13/04 1.13 2,000 2,000 1.34% 11/15/04 1.34 2,500 2,500 1.47% 11/19/04 1.47 1,000 1,000 1.48% 11/29/04 1.48 2,000 1,999 1.53% 12/1/04 1.53 5,000 4,999 1.60% 12/6/04 1.60 3,000 3,000 Health and Higher Educational Facs. Auth.: Commercial Paper Rev. Notes, Johns Hopkins University Issue, Series A, TECP: 1.34% 11/4/04 1.34 8,729 8,729 1.38% 11/9/04 1.38 4,000 4,000 Pooled Loan Program Rev. Bonds, Series 1994-D, 1.70% 1/1/29 (1) 1.70 5,000 5,000 Howard County, Consolidated Public Improvement Bond Anticipation Notes, Series 2002-C, TECP: 1.52% 11/8/04 1.52 3,000 3,000 1.40% 11/22/04 1.40 6,500 6,500 Montgomery County, Consolidated Public Improvement Commercial Paper Anticipation Notes, Series 2002, TECP, 1.25% 11/3/04 1.25 2,500 2,500 Massachusetts - 2.72% Massachusetts Health and Educational Fac. Auth. Rev. Notes, Harvard University Issue, Series 2002-EE, TECP: 1.20% 10/18/04 1.20 1,539 1,539 1.25% 10/18/04 1.25 5,000 5,000 1.25% 10/21/04 1.25 3,400 3,400 1.32% 11/15/04 1.32 2,000 2,000 Michigan - 2.88% Regents of the University of Michigan, Series F, TECP: 1.30% 10/20/04 1.30 3,000 3,000 1.27% 10/28/04 1.27 3,300 3,300 1.32% 11/12/04 1.32 4,360 4,360 1.48% 11/22/04 1.48 2,000 2,000 Minnesota - 1.71% City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical Center), TECP: Adjustable Tender, Series 1988-E, 1.14% 10/7/04 1.14 5,000 5,000 Series 2000-C, 1.35% 11/18/04 1.35 2,500 2,500 Nevada - 4.05% Clark County Industrial Dev. Rev. Bonds (Nevada Cogeneration Associates #2 Project), Series 1992, AMT, 1.81% 12/1/22 (1) 1.81 1,000 1,000 G.O. Limited Tax Bonds (Nevada Municipal Bond Bank Project), Series 2003-I, FGIC insured, 5.00% 11/1/04 0.99 2,370 2,378 Las Vegas Valley Water Dist., G.O. Limited Tax Water (SNWA Rev. Supported), TECP: Series 2004-A: 1.38% 10/14/04 1.38 5,000 5,000 1.38% 11/17/04 1.38 2,400 2,400 Series 2004-B, 1.15% 10/6/04 1.15 7,000 7,000 New Mexico - 0.43% Capital Projects G.O. Bonds, Series 2003, 4.00% 3/1/05 1.01 1,875 1,894 New York - 0.57% Dormitory Auth. (Columbia University 1997 Issue), TECP, 1.39% 11/17/04 1.39 1,000 1,000 Transitional Fin. Auth., New York City Recovery Bonds, Fiscal 2003 Series 3 Subseries 3A, 4.00% 11/1/04 0.98 1,510 1,513 North Carolina - 3.66% Albemarle Hospital Auth., Health Care Facs. Rev. Bonds, Series 2000, 1.69% 10/1/15 (1) 1.69 400 400 Capital Facs. Fin. Agcy., Duke University Issue, Series A1, TECP: 1.36% 11/15/04 1.36 3,000 3,000 1.40% 11/16/04 1.40 4,090 4,090 1.38% 11/19/04 1.38 5,600 5,600 1.48% 11/22/04 1.48 3,000 3,000 Ohio - 1.37% Full Faith and Credit G.O. Infrastructure Improvement Ref. Bonds, Series 2004-A, 1.70% 2/1/23 (1) 1.70 6,000 6,000 South Carolina - 1.99% Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP: 1.40% 10/5/04 1.40 2,000 2,000 1.66% 12/8/04 1.66 6,729 6,729 Texas - 18.74% City of El Paso Water & Sewer, Series 1998-A, TECP, 1.16% 10/5/04 1.16 4,500 4,500 Public Fin. Auth., G.O. Bonds, Series 1994-A, 5.75% 10/1/09 (preref. 10/14/04) 5.75 5,000 5,000 Gulf Coast Industrial Dev. Auth., Marine Terminal Rev. Bonds (Amoco Oil Company Project), Series 1993, AMT, 1.79% 4/1/28 (1) 1.79 1,000 1,000 Harris County, G.O. Bonds, Series B, TECP, 1.20% 10/8/04 1.20 2,320 2,320 City of Houston, G.O. Notes, TECP: Series A, 1.17% 10/13/04 1.17 2,500 2,500 Series B: 1.17% 10/13/04 1.17 2,000 2,000 1.25% 10/20/04 1.25 2,000 2,000 1.30% 10/20/04 1.30 1,400 1,400 Series D, 1.17% 10/4/04 1.17 5,000 5,000 Series E, 1.30% 10/19/04 1.30 5,000 5,000 Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Services Corp. Project), TECP: 1.15% 10/4/04 1.15 2,000 2,000 1.15% 10/6/04 1.15 3,000 3,000 1.15% 10/7/04 1.15 3,700 3,700 City of San Antonio, Electric and Gas Systems, Series A, TECP, 1.12% 10/14/04 1.12 5,500 5,500 Board of Regents of the Texas A&M University System, Rev. Fin. System, Series B, TECP, 1.12% 10/15/04 1.12 3,000 3,000 Public Fin. Auth. G.O. (Colonial Roadway Projects) , TECP: Series 2002-A, 1.42% 11/10/04 1.42 1,900 1,900 Series 2002-B: 1.15% 10/1/04 1.15 3,500 3,500 1.13% 10/13/04 1.13 3,950 3,950 Series 2003, 1.25% 11/2/04 1.25 6,000 6,000 Series 2003-C2, 1.15% 10/22/04 1.15 2,000 2,000 Board of Regents of The University of Texas System, Permanent University Fund Flexible Rate Notes, Series 2002-A, TECP: 1.30% 10/21/04 1.30 6,000 6,000 1.30% 10/26/04 1.30 3,000 3,000 1.42% 11/10/04 1.42 4,000 4,000 1.40% 11/22/04 1.40 4,000 4,000 Utah - 5.69% Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds, TECP: Series 1985-E, AMBAC insured: 1.15% 10/6/04 1.15 2,000 2,000 1.14% 10/12/04 1.14 2,000 2,000 1.40% 11/16/04 1.40 2,500 2,500 Series 1985-F, AMBAC insured: 1.34% 11/5/04 1.34 2,000 2,000 1.34% 11/9/04 1.34 4,000 4,000 1.36% 11/19/04 1.36 5,000 5,000 Series 1998-B4, 1.13% 10/4/04 1.13 3,000 3,000 Series 1998-B5: 1.48% 11/8/04 1.48 2,500 2,500 1.36% 11/18/04 1.36 2,000 2,000 Virginia - 6.34% Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series 1999-A, AMT, TECP: 1.57% 11/2/04 1.57 4,000 4,000 1.57% 11/5/04 1.57 2,500 2,500 1.38% 11/18/04 1.38 3,000 3,000 1.60% 12/3/04 1.60 2,700 2,700 Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal Associates Project), TECP: Series 1987-A: 1.40% 10/18/04 1.40 2,635 2,635 1.38% 11/3/04 1.38 3,000 3,000 Series 1987-B, 1.31% 11/12/04 1.31 5,500 5,499 Commonwealth Transportation Board, Federal Highway Reimbursement Anticipation Notes, Series 2000, 5.50% 10/1/04 5.50 2,500 2,500 University of Virginia Issue Rev. Pledge Notes, Series 2003-A, TECP: 1.38% 11/8/04 1.38 1,000 1,000 1.34% 11/17/04 1.34 1,000 1,000 Washington - 2.86% Port of Seattle, Subordinate Lien Rev. Notes, TECP: Series 1999-A1, 1.50% 10/19/04 1.50 4,755 4,755 Series 2004-B1, AMT, 1.45% 11/10/04 1.45 4,800 4,800 City of Tacoma, Limited Tax G.O. Bond Anticipation Notes, Series 2002-2B, TECP, 1.25% 10/15/04 1.25 3,000 3,000 West Virginia - 0.93% Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project), Series 1989-A, TECP, AMT: 1.16% 10/13/04 1.16 1,200 1,200 1.41% 11/19/04 1.41 2,900 2,900 Wisconsin - 4.12% Wisconsin Transportation Rev., TECP: Series 1997-A: 1.14% 10/12/04 1.14 5,000 5,000 1.31% 11/12/04 1.31 2,000 2,000 1.34% 11/16/04 1.34 2,500 2,500 1.36% 11/18/04 1.36 6,584 6,584 Series 1997-B, 1.37% 11/5/04 1.37 2,000 2,000 Wyoming - 1.30% Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds (PacifiCorp Project), Series 1988-A, TECP: 1.47% 11/15/04 1.47 3,700 3,700 1.59% 12/6/04 1.59 2,000 2,000 TOTAL INVESTMENT SECURITIES (cost: $432,595,000) 432,573 Other assets less liabilities 6,488 NET ASSETS $439,061 (1) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date. Agcy. = Agency AMT = Alternative Minimum Tax Auth. = Authority Dev. = Development Dist. = District Fac. = Facility Facs. = Facilities Fin. = Finance Fncg. = Financing G.O. = General Obligation Preref. = Prerefunded Ref. = Refunding Rev. = Revenue TECP = Tax-Exempt Commercial Paper See Notes to Financial Statements
FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES at September 30, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market: (cost: $432,595) $432,573 Cash 1,082 Receivables for: Sales of fund's shares $5,752 Interest 811 6,563 440,218 LIABILITIES: Payables for: Repurchases of fund's shares 928 Dividends on fund's shares 18 Investment advisory services 129 Services provided by affiliates 38 Deferred Trustees' compensation 22 Other fees and expenses 22 1,157 NET ASSETS AT SEPTEMBER 30, 2004 $439,061 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $439,176 Distributions in excess of net investment income (93) Net unrealized depreciation (22) NET ASSETS AT SEPTEMBER 30, 2004 $439,061
Shares of beneficial interest issued and outstanding - unlimited shares authorized, 439,179 total shares outstanding Net assets Shares outstanding Net asset value per share Class A $417,597 417,711 $1.00 Class R-5 21,464 21,468 1.00
See Notes to Financial Statements STATEMENT OF OPERATIONS for the year ended September 30, 2004 (dollars in thousands) INVESTMENT INCOME: Income: Interest $4,034 Fees and expenses: Investment advisory services $1,494 Distribution services 183 Transfer agent services 132 Administrative services 17 Reports to shareholders 16 Registration statement and prospectus 73 Postage, stationery and supplies 45 Trustees' compensation 25 Auditing and legal 88 Custodian 18 State and local taxes 5 Other 10 Total expenses before waiver 2,106 Waiver of expenses 7 2,099 Net investment income 1,935 NET UNREALIZED DEPRECIATION ON INVESTMENTS (18) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,917 See Notes to Financial Statements STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Year ended September 30 2004 2003 OPERATIONS: Net investment income $1,935 $2,100 Net unrealized depreciation on investments (18) (22) Net increase in net assets resulting from operations 1,917 2,078 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME: (1,935) (2,101) CAPITAL SHARE TRANSACTIONS 75,787 11,833 TOTAL INCREASE IN NET ASSETS 75,769 11,810 NET ASSETS: Beginning of year 363,292 351,482 End of year $439,061 $363,292 See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Tax-Exempt Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality municipal securities with effective maturities of one year or less. The fund offers two share classes consisting of one retail share class (Class A) and one retirement plan share class (Class R-5). Each share class is sold without any sales charges and does not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities purchased with greater than 60 days to maturity with 60 days or less remaining to maturity is determined based on the market value on the 61st day. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the fund's Board of Trustees. Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. Generally, income earned and distributed by the fund is exempt from federal income taxes. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of September 30, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of September 30, 2004, the cost of investment securities for federal income tax purposes was $432,595,000. During the year ended September 30, 2004, the fund reclassified $3,000 from additional paid-in capital to distributions in excess of net investment income to align financial reporting with tax reporting. As of September 30, 2004, the components of distributable earnings on a tax basis were as follows (dollars in thousands): Undistributed net investment income $41 Short-term loss carryforwards (expiring 2006-2011) (94) Gross unrealized appreciation on investment securities 1 Gross unrealized depreciation on investment securities (23) Net unrealized depreciation on investment securities (22)
Distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): Share class Year ended September 30, 2004 Year ended September 30, 2003 Class A $ 1,874 $ 2,056 Class R-5 61 45 Total $ 1,935 $ 2,101
3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.390% on the first $200 million of daily net assets and decreasing to 0.290% on such assets in excess of $1.2 billion. During the year ended September 30, 2004, CRMC reduced investment advisory services fees by $7,000. As a result, the fee shown on the accompanying financial statements of $1,494,000, which was equivalent to an annualized rate of 0.380%, was reduced to $1,487,000, or 0.378% of average daily net assets. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted a plan of distribution for Class A shares. Under the plan, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plan provides for annual expenses, based on a percentage of average daily net assets, of up to 0.15%. This class may use a portion of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A shares. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to Class R-5 from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for Class R-5. This class pays CRMC annual fees of 0.10% based on its average daily net assets. This class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): Share class Sales(1) Reinvestments of dividends Amount Shares Amount Shares Year ended September 30, 2004 Class A $ 490,187 490,187 $ 1,781 1,781 Class R-5 98,908 98,908 40 40 Total net increase (decrease) $ 589,095 589,095 $ 1,821 1,821 Year ended September 30, 2003 Class A $ 416,952 416,952 $ 1,948 1,948 Class R-5 31,199 31,199 35 35 Total net increase (decrease) $ 448,151 448,151 $ 1,983 1,983 Share class Repurchases(1) Net increase Amount Shares Amount Shares Year ended September 30, 2004 Class A $ (427,693) (427,693) $ 64,275 64,275 Class R-5 (87,436) (87,436) 11,512 11,512 Total net increase (decrease) $ (515,129) (515,129) $ 75,787 75,787 Year ended September 30, 2003 Class A $ (407,232) (407,232) $ 11,668 11,668 Class R-5 (31,069) (31,069) 165 165 Total net increase (decrease) $ (438,301) (438,301) $ 11,833 11,833
(1) Includes exchanges between share classes of the fund. 5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the year ended September 30, 2004, the custodian fee of $18,000 included $1,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) Net asset Dividends value, Net from net Net asset beginning investment investment value, end of period income (2) income of period Class A: Year ended 9/30/2004 $1.00 $.005 $(.005) $1.00 Year ended 9/30/2003 1.00 .006 (.006) 1.00 Year ended 9/30/2002 1.00 .010 (.010) 1.00 Year ended 9/30/2001 1.00 .029 (.029) 1.00 Year ended 9/30/2000 1.00 .032 (.032) 1.00 Class R-5: Year ended 9/30/2004 1.00 .005 (.005) 1.00 Year ended 9/30/2003 1.00 .005 (.005) 1.00 Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00
Ratio of expenses Ratio of expenses Ratio of Net assets, to average to average net income Total end of period net assets net assets to average return (in millions) before waiver after waiver (3) net assets Class A: Year ended 9/30/2004 .49% $418 .53% .53% .49% Year ended 9/30/2003 .57 353 .55 .55 .57 Year ended 9/30/2002 1.05 341 .54 .54 1.04 Year ended 9/30/2001 2.92 319 .52 .52 2.86 Year ended 9/30/2000 3.29 276 .64 .64 3.23 Class R-5: Year ended 9/30/2004 .45 21 .57 .57 .47 Year ended 9/30/2003 .54 10 .58 .58 .55 Period from 7/15/2002 to 9/30/2002 .17 10 .12 .12 .17
(1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Based on average shares outstanding. (3) The ratios in this column reflect the impact, if any, of certain waivers from CRMC. During the year ended 9/30/2004, CRMC reduced fees for investment advisory services for all share classes. See Notes to Financial Statements REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF THE TAX-EXEMPT MONEY FUND OF AMERICA: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Tax-Exempt Money Fund of America (the "Fund") at September 30, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2004 by correspondence with the custodian, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLC Los Angeles, California October 29, 2004 TAX INFORMATION (unaudited) We are required to advise you within 60 days of the fund's fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The information below is provided for the fund's fiscal year ending September 30, 2004. Shareholders may exclude from federal taxable income any exempt-interest dividends paid by the fund from net investment income. For purposes of computing this exclusion, all of the dividends paid by the fund from net investment income earned during the fiscal year qualify as exempt-interest dividends. SINCE THE INFORMATION ABOVE IS REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV OR OTHER TAX INFORMATION WHICH WILL BE MAILED IN JANUARY 2005 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED ON THEIR 2004 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS. EXPENSE EXAMPLE (unaudited) As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2004 through September 30, 2004). ACTUAL EXPENSES: The first line of each share class in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor. You may use the information in the table below to estimate the impact of these fees by adding the amount of the fees to the number in the first line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the first line under the heading entitled "Ending account value." HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second line of each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain shareholders, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor. You may use the information in the table below to estimate the impact of these fees by adding the amount of the fees to the number in the second line for your share class under the heading entitled "Expenses paid during period," and subtracting the amount of the fees from the number in the second line under the heading entitled "Ending account value." Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning account Ending account Expenses paid Annualized value 4/1/2004 value 9/30/2004 during period(1) expense ratio Class A -- actual return $ 1,000.00 $1,002.84 $2.56 .51% Class A -- assumed 5% return 1,000.00 1,022.51 2.59 .51 Class R-5 -- actual return 1,000.00 1,002.64 2.76 .55 Class R-5 -- assumed 5% return 1,000.00 1,022.31 2.79 .55 (1) Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (183) and divided by 365 (to reflect the one-half year period).
BOARD OF TRUSTEES "NON-INTERESTED" TRUSTEES YEAR FIRST ELECTED A TRUSTEE OF NAME AND AGE THE FUND(1) PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS Ambassador 1999 Corporate director and author; former U.S. Richard G. Capen, Jr., 70 Ambassador to Spain; former Vice Chairman, Knight-Ridder, Inc. (communications company); former Chairman and Publisher, The Miami Herald H. Frederick Christie, 71 CMTA 1976 Private investor; former President and CEO, CTRS 1991 The Mission Group (non-utility holding company, CTEX 1989 subsidiary of Southern California Edison Company) Diane C. Creel, 56 1994 Chairman of the Board and CEO, Ecovation, Inc. (organic waste management) Martin Fenton, 69 CMTA 1989 Chairman of the Board and CEO, Senior Resource CTRS 1991 Group LLC (development and management of CTEX 1989 senior living communities) Leonard R. Fuller, 58 CMTA 1994 President and CEO, Fuller Consulting (financial CTRS 1994 management consulting firm) CTEX 1995 Richard G. Newman, 70 1991 Chairman of the Board and CEO, AECOM Technology Corporation (engineering, consulting and professional technical services) Frank M. Sanchez, 61 1999 Principal, The Sanchez Family Corporation dba McDonald's Restaurants (McDonald's licensee) "NON-INTERESTED" TRUSTEES NUMBER OF PORTFOLIOS IN FUND COMPLEX(2) OVERSEEN NAME AND AGE BY TRUSTEE OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE Ambassador 14 Carnival Corporation Richard G. Capen, Jr., 70 H. Frederick Christie, 71 19 Ducommun Incorporated; IHOP Corporation; Southwest Water Company; Valero L.P. Diane C. Creel, 56 12 Allegheny Technologies; BF Goodrich; Teledyne Technologies Martin Fenton, 69 16 None Leonard R. Fuller, 58 14 None Richard G. Newman, 70 13 Sempra Energy; Southwest Water Company Frank M. Sanchez, 61 12 None "INTERESTED" TRUSTEES(4) YEAR FIRST ELECTED A TRUSTEE OR PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS NAME, AGE AND OFFICER OF AND POSITIONS HELD WITH AFFILIATED ENTITIES OR THE POSITION WITH FUND THE FUND(1) PRINCIPAL UNDERWRITER OF THE FUND Paul G. Haaga, Jr., 55 CMTA 1985 Executive Vice President and Director, Capital Chairman of the Boards CTRS 1990 Research and Management Company; Director, CTEX 1992 The Capital Group Companies, Inc.(5) Abner D. Goldstine, 74 CMTA 1976 Senior Vice President and Director, Capital Research President CTRS 1991 and Management Company CTEX 1989 Don R. Conlan, 68 1996 President (retired), The Capital Group Companies, Inc.(5) "INTERESTED" TRUSTEES(4) NUMBER OF PORTFOLIOS IN FUND COMPLEX(2) NAME, AGE AND OVERSEEN POSITION WITH FUND BY TRUSTEE OTHER DIRECTORSHIPS(3) HELD BY TRUSTEE Paul G. Haaga, Jr., 55 17 None Chairman of the Boards Abner D. Goldstine, 74 12 None President Don R. Conlan, 68 6 None
CMTA = The Cash Management Trust of America CTRS = The U.S. Treasury Money Fund of America CTEX = The Tax-Exempt Money Fund of America The statement of additional information includes additional information about fund Trustees and is available without charge upon request by calling American Funds Service Company at 800/421-0180. The address for all Trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Fund Secretary. (1) Trustees and officers of the fund serve until their resignation, removal or retirement. (2) Capital Research and Management Company manages the American Funds, consisting of 29 funds. Capital Research and Management Company also manages American Funds Insurance Series,(R) which serves as the underlying investment vehicle for certain variable insurance contracts, and Endowments, whose shareholders are limited to certain nonprofit organizations. (3) This includes all directorships (other than those in the American Funds) that are held by each Trustee as a director of a public company or a registered investment company. (4) "Interested persons" within the meaning of the 1940 Act, on the basis of their affiliation with the fund's investment adviser, Capital Research and Management Company, or affiliated entities (including the fund's principal underwriter). (5) Company affiliated with Capital Research and Management Company. OTHER OFFICERS YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND NAME, AGE AND AN OFFICER POSITIONS HELD WITH AFFILIATED ENTITIES OR THE PRINCIPAL POSITION WITH FUND OF THE FUND(1) UNDERWRITER OF THE FUND Teresa S. Cook, 52 1991 Senior Vice President -- Investment Management Senior Vice President Group, Capital Research and Management Company CMTA and CTRS only Neil L. Langberg, 51 1989 Vice President -- Investment Management Group, Senior Vice President Capital Research and Management Company CTEX only Kristine M. Nishiyama, 34 2003 Vice President and Counsel -- Fund Business Vice President Management Group, Capital Research and Management Company Karen F. Hall, 39 1999 Vice President -- Investment Management Group, Assistant Vice President Capital Research and Management Company CMTA and CTRS only Julie F. Williams, 56 CMTA 1982 Vice President -- Fund Business Management Secretary CTRS 1991 Group, Capital Research and Management Company CTEX 1989 Susi M. Silverman, 34 2000 Vice President -- Fund Business Management Treasurer Group, Capital Research and Management Company Kimberly S. Verdick, 40 1994 Assistant Vice President -- Fund Business Assistant Secretary Management Group, Capital Research and Management Company Sharon G. Moseley, 36 2003 Vice President -- Fund Business Management Assistant Treasurer Group, Capital Research and Management Company
(1) Trustees and officers of the fund serve until their resignation, removal or retirement. OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER Capital Research and Management Company 333 South Hope Street Los Angeles, CA 90071-1406 135 South State College Boulevard Brea, CA 92821-5823 TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS American Funds Service Company (Please write to the address nearest you.) P.O. Box 25065 Santa Ana, CA 92799-5065 P.O. Box 659522 San Antonio, TX 78265-9522 P.O. Box 6007 Indianapolis, IN 46206-6007 P.O. Box 2280 Norfolk, VA 23501-2280 CUSTODIAN OF ASSETS JPMorgan Chase Bank 270 Park Avenue New York, NY 10017-2070 COUNSEL Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, CA 90071-2228 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 350 South Grand Avenue Los Angeles, CA 90071-2889 PRINCIPAL UNDERWRITER American Funds Distributors, Inc. 333 South Hope Street Los Angeles, CA 90071-1406 Most American Funds offer several share classes, each with its own sales charge and expense structure, allowing you to choose the one that best meets your financial needs. The three American Funds money market funds each offer Class A shares at no sales charge. The Cash Management Trust of America (CMTA) is the only American Funds money market fund that offers Class B, Class C, Class F and Class 529 shares. CMTA Class B, C and F shares may be acquired only by exchanging from other American Funds within the same share class (i.e., they may not be purchased directly) and do not offer check-writing privileges. American Funds Class B, C and F shares are subject to additional annual expenses and fees, including, in the case of B and C shares, higher 12b-1 fees and contingent deferred sales charges if Class B shares are redeemed within six years of purchase and Class C shares are redeemed within one year of purchase. Class B, C and F shares are not available to certain employer-sponsored retirement plans. See the CMTA prospectus for further details. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE AMERICAN FUNDS AND COLLEGEAMERICA. THIS AND OTHER IMPORTANT INFORMATION IS CONTAINED IN THE FUNDS' PROSPECTUS AND THE COLLEGEAMERICA PROGRAM DESCRIPTION, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISER AND SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE COMPANY (AFS) AT 800/421-0180 OR VISIT THE AMERICAN FUNDS WEBSITE AT AMERICANFUNDS.COM. COLLEGEAMERICA IS SPONSORED BY THE VIRGINIA COLLEGE SAVINGS PLAN. "AMERICAN FUNDS PROXY VOTING GUIDELINES" -- WHICH DESCRIBES HOW WE VOTE PROXIES RELATING TO PORTFOLIO SECURITIES -- IS AVAILABLE FREE OF CHARGE ON THE U.S. SECURITIES AND EXCHANGE COMMISSION (SEC) WEBSITE AT WWW.SEC.GOV, ON THE AMERICAN FUNDS WEBSITE OR UPON REQUEST BY CALLING AFS. THE FUND'S PROXY VOTING RECORD FOR THE 12 MONTHS ENDED JUNE 30, 2004, IS ALSO AVAILABLE ON THE SEC AND AMERICAN FUNDS WEBSITES. The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America file a complete list of their portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC website or upon request by calling AFS. You may also review or, for a fee, copy the forms at the SEC's Public Reference Room in Washington, D.C. (800/SEC-0330). This report is for the information of shareholders of The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after December 31, 2004, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter. [logo - American Funds(R)] The right choice for the long term(R) WHAT MAKES AMERICAN FUNDS DIFFERENT? For more than 70 years, we have followed a consistent philosophy that we firmly believe is in our investors' best interests. The range of opportunities offered by our family of just 29 carefully conceived, broadly diversified funds has attracted over 25 million shareholder accounts. Our unique combination of strengths includes these five factors: o A LONG-TERM, VALUE-ORIENTED APPROACH Rather than follow fads, we pursue a consistent strategy, focusing on each investment's long-term potential. o AN UNPARALLELED GLOBAL RESEARCH EFFORT American Funds draws on one of the industry's most globally integrated research networks. o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM Every American Fund is divided among a number of portfolio counselors. Each takes responsibility for a portion independently, within each fund's objectives; in most cases, research analysts manage a portion as well. Over time this method has contributed to a consistency of results and continuity of management. o EXPERIENCED INVESTMENT PROFESSIONALS The recent market decline was not the first for most of the portfolio counselors who serve the American Funds. More than half of them were in the investment business before the sharp market decline of 1987. o A COMMITMENT TO LOW OPERATING EXPENSES American Funds' operating expenses are among the lowest in the mutual fund industry. Our portfolio turnover rates are low as well, keeping transaction costs and tax consequences contained. 29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS o GROWTH FUNDS Emphasis on long-term growth through stocks AMCAP Fund(R) EuroPacific Growth Fund(R) The Growth Fund of America(R) The New Economy Fund(R) New Perspective Fund(R) New World Fund(SM) SMALLCAP World Fund(R) o GROWTH-AND-INCOME FUNDS Emphasis on long-term growth and dividends through stocks American Mutual Fund(R) Capital World Growth and Income Fund(SM) Fundamental Investors(SM) The Investment Company of America(R) Washington Mutual Investors Fund(SM) o EQUITY-INCOME FUNDS Emphasis on above-average income and growth through stocks and/or bonds Capital Income Builder(R) The Income Fund of America(R) o BALANCED FUND Emphasis on long-term growth and current income through stocks and bonds American Balanced Fund(R) o BOND FUNDS Emphasis on current income through bonds American High-Income Trust(SM) The Bond Fund of America(SM) Capital World Bond Fund(R) Intermediate Bond Fund of America(R) U.S. Government Securities Fund(SM) o TAX-EXEMPT BOND FUNDS Emphasis on tax-free current income through municipal bonds American High-Income Municipal Bond Fund(R) Limited Term Tax-Exempt Bond Fund of America(SM) The Tax-Exempt Bond Fund of America(R) STATE-SPECIFIC TAX-EXEMPT FUNDS The Tax-Exempt Fund of California(R) The Tax-Exempt Fund of Maryland(R) The Tax-Exempt Fund of Virginia(R) o MONEY MARKET FUNDS The Cash Management Trust of America(R) The Tax-Exempt Money Fund of America(SM) The U.S. Treasury Money Fund of America(SM) THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust Lit. No. MFGEAR-960-1104P Litho in USA AGD/LPT/8063-S1915 Printed on recycled paper ITEM 2 - Code of Ethics The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071. ITEM 3 - Audit Committee Financial Expert The Registrant's Board has determined that H. Frederick Christie, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item. This designation will not increase the designee's duties, obligations or liability as compared to his duties, obligations and liability as a member of the Audit Committee and of the Board; nor will it reduce the responsibility of the other Audit Committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the Board had designated them as such. Most importantly, the Board believes each member of the Audit Committee contributes significantly to the effective oversight of the Registrant's financial statements and condition. ITEM 4 - Principal Accountant Fees and Services Fees billed by the Registrant's auditors for each of the last two fiscal years, including fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant, and a description of the nature of the services comprising the fees, are listed below: Registrant: a) Audit Fees: 2003 $49,000 2004 $52,000 b) Audit- Related Fees: 2003 none 2004 none c) Tax Fees: 2003 $5,000 2004 $5,000 The tax fees consist of professional services relating to the preparation of the Registrant's tax returns. d) All Other Fees: 2003 none 2004 none Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): b) Audit- Related Fees: 2003 none 2004 none c) Tax Fees: 2003 none 2004 none d) All Other Fees: 2003 none 2004 none The Registrant's Audit Committee will pre-approve all audit and permissible non-audit services that the Committee considers compatible with maintaining the auditors' independence. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the registrant. The Committee will not delegate its responsibility to pre-approve these services to the investment adviser. The Committee may delegate to one or more Committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full Committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the services listed above under paragraphs b, c and d. Aggregate non-audit fees paid to the Registrant's auditors, including fees for all services billed to the Registrant and the adviser and affiliates that provide ongoing services to the Registrant were $5,000 for fiscal year 2003 and $5,000 for fiscal year 2004. The non-audit services represented by these amounts were brought to the attention of the Committee and considered to be compatible with maintaining the auditors' independence. ITEM 5 - Audit Committee of Listed Registrants Not applicable. ITEM 6 - Schedule of Investments Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 8 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 9 - Submission of Matters to a Vote of Security Holders There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating committee comprised solely of persons who are not considered "interested persons" of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the Board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board. Such suggestions must be sent in writing to the nominating committee of the Registrant, c/o the Registrant's Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating committee. ITEM 10 - Controls and Procedures (a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. (b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 11 - Exhibits (a) The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. (b) The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE CASH MANAGEMENT TRUST OF AMERICA By /s/ Abner D. Goldstine ------------------------------------------------------- Abner D. Goldstine, President and PEO Date: December 8, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Abner D. Goldstine -------------------------------------------------- Abner D. Goldstine, President and PEO Date: December 8, 2004 By /s/ Susi M. Silverman -------------------------------------------------- Susi M. Silverman, Treasurer and PFO Date: December 8, 2004