N-CSR 1 ctrsncsr.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: 811-6235 The U.S. Treasury Money Fund of America (Exact Name of Registrant as specified in charter) 333 South Hope Street Los Angeles, California 90071 (Address of principal executive offices) Registrant's telephone number, including area code: (213) 486-9200 Date of fiscal year end: September 30, 2004 Date of reporting period: March 31, 2004 Julie F. Williams Capital Research and Management Company 333 South Hope Street Los Angeles, California 90071 (name and address of agent for service) Copies to: Robert E. Carlson, Esq. Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, California 90071 (Counsel for the Registrant) ITEM 1 - Reports to Stockholders [logo - American Funds(R)] The right choice for the long term(R) THE CASH MANAGEMENT TRUST OF AMERICA THE U.S. TREASURY MONEY FUND OF AMERICA THE TAX-EXEMPT MONEY FUND OF AMERICA [front cover: photo of Terry S. Cook, Belinda A. Heard and Karen Hall looking at computer screen] Semi-annual report for the six months ended March 31, 2004 THE CASH MANAGEMENT TRUST OF AMERICA(R) seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality, short-term money market instruments. THE U.S. TREASURY MONEY FUND OF AMERICA SM seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. THE TAX-EXEMPT MONEY FUND OF AMERICA SM seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality, municipal securities with effective maturities of one year or less. These money market funds are three of the 29 American Funds, the nation's third-largest mutual fund family. For more than seven decades, Capital Research and Management Company, SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk. Results for share classes B, C, F and 529 of The Cash Management Trust of America can be found on page 26. Please see the inside back cover for important information about share classes. FIGURES SHOWN ON THE OPPOSITE PAGE ARE PAST RESULTS FOR CLASS A SHARES AND ARE NOT PREDICTIVE OF RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE LOWER OR HIGHER THAN THOSE SHOWN. SHARE PRICES AND RETURNS WILL VARY, SO INVESTORS MAY LOSE MONEY. FOR THE MOST CURRENT INFORMATION AND MONTH-END RESULTS, VISIT AMERICANFUNDS.COM. ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. Income from The Tax-Exempt Money Fund of America may be subject to state or local income taxes and/or federal alternative minimum taxes. Certain other income may be taxable. FELLOW SHAREHOLDERS: When the funds' fiscal year began six months ago, short-term interest rates were at a 45-year low. While a rise in short-term rates typically accompanies an improving economy, short-term rates have remained at the same low level since June 2003, despite improvement in the economy. The very limited income that each of the money funds generated was outpaced by the 1.19% rate of inflation as measured by the Consumer Price Index. Of course, each of the American Funds money market funds maintained a stable net asset value. Rates may well rise in the months ahead if the economy continues to grow at its current pace. THE FUNDS' RESULTS THE CASH MANAGEMENT TRUST OF AMERICA provided an income return of 0.35% (0.70% annualized) with dividends reinvested for the six-month period ended March 31, 2004. THE U.S. TREASURY MONEY FUND OF AMERICA generated a six-month income return of 0.14% (0.28% annualized) with dividends reinvested. Because all of the fund's earnings are derived from investments in U.S. Treasury securities, the income paid by the fund is exempt from state and local taxes. THE TAX-EXEMPT MONEY FUND OF AMERICA provided a federally tax-free income return of 0.20% (0.41% annualized) with dividends reinvested. This return is equivalent to a return of 0.31% (0.63% annualized) for investors in the 35.0% tax bracket. A portion of this return may also be exempt from some state and local taxes. ECONOMY ON THE MEND When we last reported to you in September 2003, the U.S. economy appeared to be on a clear path toward recovery, but with little job creation. In October, the Federal Reserve Board announced plans to keep short-term interest rates low for a considerable period to help bolster the recovery. Despite the increased strength of the U.S. economy over the six-month period, job creation remained sluggish until very recently. Inflation has also remained at a moderate level, allowing the Federal Reserve to maintain short-term interest rates at historic lows. In March, the economy added 337,000 jobs -- the most in nearly four years. This raised hopes that the labor market is turning a crucial corner. As the economy continues to expand, a labor market rebound and concerns about the prospect of inflation may lead to higher interest rates. On April 20, after the close of the funds' reporting period, Federal Reserve Chairman Alan Greenspan helped shape market expectations when he announced the "federal funds rate must rise at some point to prevent pressures on price inflation from eventually emerging." [Begin Sidebar] SEVEN-DAY ANNUALIZED RATES(1), FEDERAL FUNDS RATE AND THE CONSUMER PRICE INDEX For the five years ended March 31, 2004 (plotted monthly) [begin line chart] Consumer Federal Tax-Exempt Cash U.S. Treasury Price Index Funds Rate Money Fund Management Trust Money Fund (inflation) (target rate) of America (2) of America of America (3) Mar-99 1.73 4.75 3.52 4.23 3.83 Apr-99 2.28 4.75 3.89 4.26 3.75 May-99 2.09 4.75 3.92 4.34 3.82 Jun-99 1.96 5.00 4.00 4.35 3.79 Jul-99 2.14 5.00 3.88 4.57 4.00 Aug-99 2.26 5.25 4.06 4.75 4.24 Sep-99 2.63 5.25 4.46 4.61 4.32 Oct-99 2.56 5.25 4.40 4.95 4.11 Nov-99 2.62 5.50 4.65 5.00 4.49 Dec-99 2.68 5.50 5.26 5.32 4.47 Jan-00 2.74 5.50 4.17 5.37 4.58 Feb-00 3.22 5.75 4.17 5.20 4.48 Mar-00 3.76 6.00 4.49 5.46 5.08 Apr-00 3.07 6.00 5.35 5.48 5.07 May-00 3.19 6.50 5.45 5.65 5.05 Jun-00 3.73 6.50 5.82 6.06 5.20 Jul-00 3.66 6.50 5.40 5.99 5.21 Aug-00 3.41 6.50 5.55 6.04 5.60 Sep-00 3.45 6.50 5.89 6.06 5.64 Oct-00 3.45 6.50 5.48 6.11 5.44 Nov-00 3.45 6.50 5.85 5.97 5.36 Dec-00 3.39 6.50 5.68 5.94 5.12 Jan-01 3.73 5.50 4.55 5.39 5.15 Feb-01 3.53 5.50 3.98 5.01 4.71 Mar-01 2.92 5.00 4.48 4.67 4.37 Apr-01 3.27 4.50 4.69 4.24 3.65 May-01 3.62 4.00 4.29 3.67 3.42 Jun-01 3.25 3.75 3.88 3.28 3.17 Jul-01 2.72 3.75 3.45 3.19 2.89 Aug-01 2.72 3.50 3.15 3.09 2.96 Sep-01 2.65 3.00 2.89 2.71 2.59 Oct-01 2.13 2.50 2.55 1.98 2.05 Nov-01 1.90 2.00 2.20 1.65 1.60 Dec-01 1.55 1.75 1.83 1.33 1.25 Jan-02 1.14 1.75 1.35 1.17 1.13 Feb-02 1.14 1.75 1.32 1.14 1.10 Mar-02 1.48 1.75 1.25 1.17 1.14 Apr-02 1.64 1.75 1.68 1.25 1.16 May-02 1.18 1.75 1.71 1.26 1.12 Jun-02 1.07 1.75 1.45 1.13 1.09 Jul-02 1.46 1.75 1.29 1.16 1.06 Aug-02 1.80 1.75 1.25 1.15 1.13 Sep-02 1.51 1.75 1.46 1.15 1.10 Oct-02 2.03 1.75 1.52 1.21 1.08 Nov-02 2.20 1.25 1.35 1.00 0.87 Dec-02 2.38 1.25 1.04 0.78 0.71 Jan-03 2.60 1.25 0.79 0.77 0.59 Feb-03 2.98 1.25 0.80 0.89 0.58 Mar-03 3.02 1.25 0.61 0.99 0.58 Apr-03 2.22 1.25 0.88 0.85 0.57 May-03 2.06 1.25 0.88 0.88 0.55 Jun-03 2.11 1.00 0.91 0.68 0.46 Jul-03 2.11 1.00 0.63 0.84 0.42 Aug-03 2.16 1.00 0.51 1.05 0.38 Sep-03 2.32 1.00 0.63 1.06 0.42 Oct-03 2.04 1.00 0.60 0.89 0.37 Nov-03 1.77 1.00 0.68 0.77 0.29 Dec-03 1.88 1.00 0.72 0.73 0.25 Jan-04 1.93 1.00 0.45 0.59 0.17 Feb-04 1.69 1.00 0.85 0.63 0.30 Mar-04 1.87 1.00 0.66 0.60 0.30
[end line chart] (1) Equivalent to Securities and Exchange Commission yield. (2) Represents the fund's taxable equivalent yield calculated at the 35.0% federal tax rate. (3) Because income paid by The U.S. Treasury Money Fund of America is exempt from state and local taxes in most states, the fund's taxable equivalent yield would be higher than the rates shown in the chart. YOUR FUNDS' SEVEN-DAY YIELDS AS OF MARCH 31, 2004: The Cash Management Trust of America +0.60% The U.S. Treasury Money Fund of America +0.30 The Tax-Exempt Money Fund of America +0.43 The Tax-Exempt Money Fund of America (taxable equivalent yield) (2) +0.66 [End Sidebar] THE IMPACT ON MONEY FUNDS In total, the Federal Reserve lowered the key federal funds rate 13 times since 2001. The yields on short-term investments are strongly influenced by this benchmark lending rate. The chart on the preceding page demonstrates the interplay between the federal funds rate and the yields of the American Funds money market funds. THE FUNDS' OBJECTIVE Our foremost objective in managing the money market funds is to protect our shareholders' investments, while providing income that is consistent with the market yields on short-term investments. Because of the stability and convenience that they provide, the American Funds money market funds can play a valuable role in your overall investment plan. Added to a portfolio that includes stock and bond funds, money market funds can serve as a temporary resting place for your assets between longer term investments and as a way to earn reasonable income on a cash reserve portion of your portfolio over an economic cycle. Thank you for choosing an American Funds money market fund for your investment portfolio. As always, we appreciate the confidence you have placed in us and look forward to helping you meet your long-term goals. Cordially, /s/ Paul G. Haaga, Jr. /s/ Abner D. Goldstine Paul G. Haaga, Jr. Abner D. Goldstine Chairman of the Boards President May 14, 2004 Figures shown on the opposite page are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information about the fund, visit americanfunds.com THE CASH MANAGEMENT TRUST OF AMERICA INVESTMENT PORTFOLIO March 31, 2004 unaudited PRINCIPAL MARKET YIELD AT AMOUNT VALUE SHORT-TERM SECURITIES - 100.19% ACQUISTION (000) (000) CERTIFICATES OF DEPOSIT - 2.41% State Street Bank & Trust May 4, 2004 1.03% $ 50,000 $ 50,000 Wells Fargo Bank, NA April 19, 2004 1.02 50,000 50,000 May 6, 2004 1.02 50,000 50,000 May 11, 2004 1.02 50,000 50,000 Total certificates of deposit 200,000 COMMERCIAL PAPER - 82.12% Abbey National North America LLC April 6, 2004 1.01 50,000 49,992 April 13, 2004 1.02 50,000 49,982 AIG Funding Inc. April 12, 2004 1.00 120,000 119,960 April 16, 2004 0.98 30,000 29,987 American Express Credit Corp. April 14, 2004 1.01 75,000 74,971 May 26, 2004 1.01 75,000 74,883 American Honda Finance Corp. May 4, 2004 1.02 50,000 49,952 May 11, 2004 1.02 50,000 49,943 May 24, 2004 1.02 50,000 49,925 Amsterdam Funding Corp. (1) April 26, 2004 1.02 50,000 49,963 April 29, 2004 1.02 100,000 99,918 Anheuser-Busch Cos. Inc. (1) April 14, 2004 0.98 25,000 24,990 May 5, 2004 0.99 25,000 24,976 ANZ (Delaware) Inc. April 5, 2004 1.02 50,000 49,993 Archer Daniels Midland Co. (1) April 20, 2004 1.02 40,000 39,978 Bank of Ireland (1) April 2, 2004 1.02 100,000 99,994 Bank of Montreal June 1, 2004 1.02 25,000 24,955 Bank of Nova Scotia April 7, 2004 1.01 50,000 49,990 Barclays U.S. Funding Corp. May 13, 2004 1.01 50,000 49,941 BMW U.S. Capital Corp. April 26, 2004 1.00 50,000 49,964 BNP Paribas Finance Inc. May 11, 2004 1.02 50,000 49,943 CAFCO, LLC (1) April 16, 2004 1.03 75,000 74,966 April 23, 2004 1.02 75,000 74,951 Canada Government April 15, 2004 0.97 85,000 84,966 Canadian Imperial Holdings Inc. May 10, 2004 1.01 50,000 49,944 May 24, 2004 1.01 50,000 49,924 May 28, 2004 1.01 25,000 24,959 Canadian Wheat Board April 6, 2004 0.98 20,000 19,997 April 8, 2004 0.98 20,000 19,996 April 15, 2004 0.97 30,000 29,988 Caterpillar Financial Services Corp. April 6, 2004 0.99 60,000 59,990 April 21, 2004 0.99 20,000 19,988 CDC Commercial Paper Corp. (1) May 26, 2004 1.01 100,000 99,845 ChevronTexaco Funding Corp. April 14, 2004 1.00 75,000 74,971 April 23, 2004 0.99 75,000 74,953 Clipper Receivables Company, LLC (1) April 1, 2004 1.03 50,000 49,999 April 20, 2004 1.03 50,000 49,972 Clorox Co. April 13, 2004 0.98 35,000 34,988 Coca-Cola Co. April 21, 2004 0.99 150,000 149,913 Danske Corp. April 14, 2004 1.01 50,000 49,980 April 14, 2004 1.02 25,000 24,990 May 14, 2004 1.01 50,000 49,938 Dexia Delaware LLC April 1, 2004 1.02 100,000 99,997 April 15, 2004 1.02 50,000 49,979 Diageo Capital PLC (1) April 6, 2004 1.02 50,000 49,992 DuPont (E.I.) de Nemours & Co. April 20, 2004 1.00 50,000 49,972 April 29, 2004 1.00 100,000 99,918 Eli Lilly and Co. (1) May 7, 2004 0.98 25,000 24,975 Exxon Asset Management Co. (1) April 8, 2004 0.98 50,000 49,989 April 23, 2004 0.98 50,000 49,969 April 27, 2004 0.98 50,000 49,963 FCAR Owner Trust I April 16, 2004 1.03 100,000 99,954 Gannett Co. (1) April 5, 2004 0.99 75,000 74,990 April 23, 2004 0.98 75,000 74,953 General Electric Capital Corp. May 5, 2004 1.02 150,000 149,852 GlaxoSmithKline Finance PLC April 5, 2004 1.02 75,000 74,990 April 19, 2004 1.01 25,000 24,987 May 17, 2004 1.00 25,000 24,968 Harvard University May 17, 2004 0.97 25,000 24,968 HBOS Treasury Services PLC May 17, 2004 1.02 100,000 99,867 Household Finance Corp. April 5, 2004 1.03 25,000 24,996 IBM Credit Corp. April 21, 2004 0.98 100,000 99,943 ING (U.S.) Funding LLC April 8, 2004 1.02 50,000 49,989 April 26, 2004 1.02 50,000 49,963 KFW International Finance Inc. (1) April 7, 2004 1.00 50,000 49,991 May 11, 2004 1.01 100,000 99,889 Lloyds TSB Bank PLC April 7, 2004 1.01 50,000 49,990 May 3, 2004 1.00 50,000 49,954 Medtronic Inc. (1) April 7, 2004 0.98 25,000 24,995 May 12, 2004 0.99 25,000 24,971 Nestle Capital Corp. (1) May 24, 2004 1.00 75,000 74,887 NetJets Inc. (1) April 13, 2004 1.01 30,000 29,989 May 24, 2004 1.00 40,000 39,940 New Center Asset Trust April 5, 2004 1.02 30,000 29,996 April 28, 2004 1.01 70,000 69,944 Old Line Funding, LLC (1) May 3, 2004 1.03 75,000 74,931 May 13, 2004 1.02 35,000 34,957 May 17, 2004 1.03 40,000 39,947 Park Avenue Receivables Company, LLC (1) April 8, 2004 1.02 50,000 49,989 April 13, 2004 1.03 50,000 49,981 April 21, 2004 1.03 50,000 49,970 Pfizer Inc. (1) April 14, 2004 0.99 75,000 74,971 April 19, 2004 0.99 50,000 49,974 May 11, 2004 1.00 25,000 24,972 Procter & Gamble Co. (1) April 12, 2004 1.01 25,000 24,992 April 13, 2004 1.00 50,000 49,982 Rabobank USA Financial Corp. May 14, 2004 1.00 100,000 99,878 Receivables Capital Company, LLC (1) April 7, 2004 1.02 50,000 49,990 April 13, 2004 1.02 50,000 49,982 April 22, 2004 1.03 20,000 19,987 April 28, 2004 1.02 30,000 29,976 Royal Bank of Scotland PLC April 12, 2004 1.02 75,000 74,975 May 7, 2004 1.02 50,000 49,948 Shell Finance (U.K.) PLC April 2, 2004 1.01 25,000 24,999 April 8, 2004 (1) 1.01 25,000 24,994 April 22, 2004 1.01 25,000 24,985 Siemens Capital Co. LLC April 27, 2004 1.01 50,000 49,962 Societe Generale N.A. Inc. April 21, 2004 1.02 50,000 49,971 May 5, 2004 1.02 75,000 74,926 Spintab AB (Swedmortgage) April 1, 2004 1.03 50,000 49,999 April 2, 2004 1.02 50,000 49,997 Svenska Handelsbanken Inc. April 6, 2004 1.03 75,000 74,987 May 26, 2004 1.02 75,000 74,881 Three Pillars Funding, LLC (1) April 15, 2004 1.03 50,000 49,979 April 22, 2004 1.03 35,000 34,978 April 26, 2004 1.03 65,000 64,952 Toronto-Dominion Holdings USA Inc. April 12, 2004 1.02 50,000 49,984 May 21, 2004 1.02 75,000 74,894 Toyota Motor Credit Corp. April 5, 2004 1.03 50,000 49,993 April 19, 2004 1.03 25,000 24,987 Triple-A One Funding Corp. (1) April 13, 2004 1.02 35,000 34,987 May 14, 2004 1.02 115,000 114,856 UBS Finance (Delaware) LLC April 22, 2004 1.00 100,000 99,939 Unilever Capital Corp. (1) April 27, 2004 0.98 30,000 29,978 May 4, 2004 0.99 20,000 19,981 United Parcel Service Inc. April 2, 2004 0.96 25,000 24,999 April 13, 2004 0.96 25,000 24,991 Variable Funding Capital Corp. (1) April 2, 2004 1.03 50,000 49,997 April 15, 2004 1.02 50,000 49,979 April 20, 2004 1.02 50,000 49,972 Verizon Network Funding Co. April 7, 2004 0.99 50,000 49,990 April 26, 2004 0.99 25,000 24,982 Wal-Mart Stores Inc. (1) April 6, 2004 0.99 50,000 49,992 April 19, 2004 0.98 50,000 49,974 May 18, 2004 0.98 50,000 49,935 Westpac Capital Corp. April 5, 2004 1.03 25,000 24,996 May 6, 2004 1.02 40,000 39,960 Total commercial paper 6,815,516 FEDERAL AGENCY DISCOUNT NOTES - 9.03% Fannie Mae May 12, 2004 0.98 150,000 149,829 Federal Farm Credit Banks April 16, 2004 0.97 25,000 24,989 May 7, 2004 0.95 55,000 54,946 Federal Home Loan Bank April 7, 2004 1.00 25,000 24,995 April 16, 2004 0.99 50,000 49,978 May 7, 2004 0.98 50,000 49,949 May 21, 2004 0.98 25,000 24,965 Freddie Mac April 1, 2004 0.99 15,000 15,000 May 4, 2004 0.99 65,000 64,939 May 11, 2004 0.98 50,000 49,944 International Bank for Reconstruction and Development April 6, 2004 0.96 50,000 49,992 April 12, 2004 0.96 50,000 49,984 April 16, 2004 0.98 100,000 99,957 Sallie Mae (2) May 20, 2004 1.01 25,000 24,996 June 17, 2004 1.02 15,000 15,000 Total federal agency discount notes 749,463 U.S. TREASURIES - 6.63% U.S. Treasury Bills April 1, 2004 0.97 100,000 99,997 April 8, 2004 0.97 100,000 99,979 April 15, 2004 0.92 225,000 224,919 April 22, 2004 0.97 100,000 99,942 April 29, 2004 0.96 25,000 24,980 Total U.S. Treasuries 549,817 TOTAL INVESTMENT SECURITIES (cost: $8,314,776,000) 8,314,796 Other assets less liabilities -15,814 NET ASSETS $8,298,982
(1) Restricted security that can be resold only to institutional investors. In practice, this security is as liquid as unrestricted securities in the portfolio. (2) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date. See Notes to Financial Statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES unaudited at March 31, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market (cost: $8,314,776) $8,314,796 Cash 3,048 Receivables for: Sales of fund's shares $41,211 Interest 304 $41,515 Other assets 4 8,359,363 LIABILITIES: Payables for: Repurchases of fund's shares 56,586 Dividends on fund's shares 98 Investment advisory services 1,128 Services provided by affiliates 2,474 Deferred Trustees' compensation 38 Other fees and expenses 57 60,381 NET ASSETS AT MARCH 31, 2004 $8,298,982 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $8,298,962 Net unrealized appreciation 20 NET ASSETS AT MARCH 31, 2004 $8,298,982 SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES AUTHORIZED SHARES NET ASSET NET ASSETS OUTSTANDING VALUE PER SHARE Class A $7,406,236 7,406,218 $1.00 Class B 134,667 134,666 1.00 Class C 70,843 70,842 1.00 Class F 8,402 8,402 1.00 Class 529-A 100,560 100,560 1.00 Class 529-B 1,155 1,155 1.00 Class 529-C 4,048 4,048 1.00 Class 529-E 5,048 5,048 1.00 Class 529-F 2,567 2,567 1.00 Class R-1 9,433 9,433 1.00 Class R-2 280,849 280,849 1.00 Class R-3 181,009 181,009 1.00 Class R-4 33,191 33,191 1.00 Class R-5 60,974 60,974 1.00 See Notes to Financial Statements STATEMENT OF OPERATIONS unaudited for the six months ended March 31, 2004 dollars in thousands) INVESTMENT INCOME: Income: Interest $43,435 Fees and expenses: Investment advisory services $11,765 Distribution services 5,456 Transfer agent services 6,490 Administrative services 1,399 Reports to shareholders 69 Registration statement and prospectus 227 Postage, stationery and supplies 1,159 Trustees' compensation 23 Auditing and legal 61 Custodian 106 State and local taxes 13 Other 67 Total expenses before reimbursement 26,835 Reimbursement of expenses 11,028 15,807 Net investment income 27,628 NET UNREALIZED APPRECIATION ON INVESTMENTS 39 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $27,667 See Notes to Financial Statements STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) Six months ended Year ended March 31, 2004* September 30, 2003 OPERATIONS: Net investment income $27,628 $91,848 Net unrealized appreciation (depreciation) on investments 39 (4) Net increase in net assets resulting from operations 27,667 91,844 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME (27,628) (91,828) CAPITAL SHARE TRANSACTIONS (431,638) 32,809 TOTAL (DECREASE) INCREASE IN NET ASSETS (431,599) 32,825 NET ASSETS: Beginning of period 8,730,581 8,697,756 End of period $8,298,982 $8,730,581 *Unaudited
See Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS unaudited 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Cash Management Trust of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in high-quality short-term money market instruments. The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) are sponsored by the Commonwealth of Virginia and can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund's share classes are described below: ------------------------------------------------------------------------------------------------------------ INITIAL SALES CONTINGENT DEFERRED SALES SHARE CLASS CHARGE CHARGE UPON REDEMPTION CONVERSION FEATURE ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Classes A and 529-A None None None ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Classes B and 529-B None Declines from 5% to zero Classes B and 529-B for redemptions within convert to classes A six years of purchase and 529-A, respectively, after eight years ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Class C None 1% for redemptions within Class C converts to Class F one year of purchase after 10 years ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Class 529-C None 1% for redemptions within None one year of purchase ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Class 529-E None None None ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Classes F and 529-F None None None ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ Classes R-1, R-2, R-3, None None None R-4 and R-5 ------------------------------------------------------------------------------------------------------------
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of March 31, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of March 31, 2004, the cost of investment securities for federal income tax purposes was $8,314,776,000. As of March 31, 2004, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $ 134 Gross unrealized appreciation on investment securities 29 Gross unrealized depreciation on investment securities (9) Tax basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): SIX MONTHS ENDED YEAR ENDED SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003 Class A $ 26,848 $ 90,058 Class B 73 252 Class C 34 127 Class F 9 67 Class 529-A 189 425 Class 529-B -* 1 Class 529-C 2 3 Class 529-E 2 7 Class 529-F 2 4 Class R-1 4 5 Class R-2 125 139 Class R-3 81 167 Class R-4 51 96 Class R-5 208 477 Total $ 27,628 $ 91,828 *Amount less than one thousand. 3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.320% on the first $1 billion of daily net assets and decreasing to 0.270% on such assets in excess of $2 billion. For the six months ended March 31, 2004, the investment advisory services fee was $11,765,000, which was equivalent to an annualized rate of 0.278% of average daily net assets. The Investment Advisory and Service Agreement also provides that CRMC will reimburse the fund's expenses to the extent that annual operating expenses for Class A shares exceed 25% of gross income. Expenses related to interest, taxes, brokerage commissions and extraordinary items are not subject to these limitations. Low income levels, caused by the decline in short-term interest rates, have resulted in expenses exceeding this limit. During the six months ended March 31, 2004, these reimbursements totaled $9,449,000. It is likely that expenses will continue to be reimbursed while short-term interest rates remain low. The amount of reimbursement during any period will vary in accordance with the fund's gross income and expense levels. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted below. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. All share classes may use a portion (0.15% for classes A, B, 529-A and 529-B shares and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. --------------------------------------------------------------------------- SHARE CLASS CURRENTLY APPROVED LIMITS PLAN LIMITS --------------------------------------------------------------------------- --------------------------------------------------------------------------- Class A 0.15% 0.15% --------------------------------------------------------------------------- --------------------------------------------------------------------------- Class 529-A 0.15 0.50 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Classes B and 529-B 0.90 0.90 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Classes C, 529-C and R-1 1.00 1.00 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Class R-2 0.75 1.00 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Classes 529-E and R-3 0.50 0.75 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Classes F, 529-F and R-4 0.25 0.50 --------------------------------------------------------------------------- TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than classes A and B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the start-up period for classes R-1, R-2 and R-3, CRMC has voluntarily agreed to pay a portion of these fees. For the six months ended March 31, 2004, the total fees paid by CRMC were $357,000. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees in the accompanying financial statements, the Commonwealth of Virginia is not considered a related party. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the six months ended March 31, 2004, were as follows (dollars in thousands): -------------------------------------------------------------------------------------------------------------- ADMINISTRATIVE SERVICES ------------------------------------------------------------ COMMONWEALTH OF CRMC VIRGINIA DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE TRANSFER AGENT ADMINISTRATIVE SHARE CLASS SERVICES SERVICES SERVICES SERVICES SERVICES -------------------------------------------------------------------------------------------------------------- Class A $2,992 $6,408 Not applicable Not applicable Not applicable -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class B 644 82 Not applicable Not applicable Not applicable -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class C 331 Included $50 $12 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class F 7 Included 4 1 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-A 23 Included 71 19 $48 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-B 5 Included 1 -* 1 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-C 18 Included 3 1 2 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-E 12 Included 3 1 2 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class 529-F 3 Included 2 -* 1 in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-1 42 Included 6 5 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-2 939 Included 188 663 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-3 404 Included 121 133 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-4 36 Included 22 1 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Class R-5 Not applicable Included 32 6 Not applicable in administrative services -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- Total $5,456 $6,490 $503 $842 $54 ----------------============================================================================================== * Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. For the six months ended March 31, 2004, the total fees paid by CRMC for classes B, C, 529-B, 529-C, 529-E, R-1, R-2 and R-3 were $1,222,000. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): REINVESTMENTS OF NET (DECREASE) SALES(1) DIVIDENDS REPURCHASES(1) INCREASE SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES SIX MONTHS ENDED MARCH 31, 2004 Class A $6,315,723 6,315,723 $25,800 25,800 $ (6,844,989) (6,844,989) $(503,466) (503,466) Class B 52,183 52,183 66 66 (90,508) (90,508) (38,259) (38,259) Class C 68,692 68,692 30 30 (86,600) (86,600) (17,878) (17,878) Class F 9,300 9,300 7 7 (8,247) (8,247) 1,060 1,060 Class 529-A 56,250 56,250 186 186 (45,173) (45,173) 11,263 11,263 Class 529-B 522 522 -* -* (449) (449) 73 73 Class 529-C 1,777 1,777 2 2 (1,188) (1,188) 591 591 Class 529-E 2,542 2,542 2 2 (2,110) (2,110) 434 434 Class 529-F 1,662 1,662 2 2 (1,415) (1,415) 249 249 Class R-1 8,992 8,992 4 4 (7,243) (7,243) 1,753 1,753 Class R-2 510,939 510,939 117 117 (435,835) (435,835) 75,221 75,221 Class R-3 301,749 301,749 77 77 (259,010) (259,010) 42,816 42,816 Class R-4 40,923 40,923 51 51 (33,939) (33,939) 7,035 7,035 Class R-5 59,885 59,885 200 200 (72,615) (72,615) (12,530) (12,530) Total net increase (decrease) $7,431,139 7,431,139 $26,544 26,544 $ (7,889,321) (7,889,321) $(431,638) (431,638) YEAR ENDED SEPTEMBER 30, 2003 Class A $15,232,335 15,232,335 $86,266 86,266 $(15,714,246) (15,714,246) $(395,645) (395,645) Class B 233,546 233,546 232 232 (218,968) (218,968) 14,810 14,810 Class C 470,206 470,206 112 112 (481,173) (481,173) (10,855) (10,855) Class F 130,042 130,042 36 36 (133,112) (133,112) (3,034) (3,034) Class 529-A 115,515 115,515 416 416 (60,929) (60,929) 55,002 55,002 Class 529-B 1,235 1,235 1 1 (517) (517) 719 719 Class 529-C 4,360 4,360 3 3 (1,894) (1,894) 2,469 2,469 Class 529-E 5,577 5,577 6 6 (2,336) (2,336) 3,247 3,247 Class 529-F 3,376 3,376 4 4 (1,063) (1,063) 2,317 2,317 Class R-1 17,203 17,203 5 5 (10,483) (10,483) 6,725 6,725 Class R-2 852,833 852,833 124 124 (669,787) (669,787) 183,170 183,170 Class R-3 567,375 567,375 155 155 (444,141) (444,141) 123,389 123,389 Class R-4 62,875 62,875 92 92 (37,312) (37,312) 25,655 25,655 Class R-5 116,674 116,674 447 447 (92,281) (92,281) 24,840 24,840 Total net increase (decrease) $17,813,152 17,813,152 $87,899 87,899 $(17,868,242) (17,868,242) $ 32,809 32,809 *Amount less than one thousand. (1) Includes exchanges between share classes of the fund.
5. RESTRICTED SECURITIES The fund has invested in certain securities that can be resold only to institutional investors. These securities are identified in the investment portfolio and, in practice, are as liquid as unrestricted securities in the portfolio. As of March 31, 2004, the total value of restricted securities was $2,758,000, which represented 33.24% of the net assets of the fund. 6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the six months ended March 31, 2004, the custodian fee of $106,000 included $6,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) NET ASSET DIVIDENDS VALUE, NET FROM NET NET ASSET BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL OF PERIOD INCOME (2) INCOME OF PERIOD RETURN (3) CLASS A: Six months ended 3/31/2004 (5) $1.00 $.004 (.004) $1.00 .35% Year ended 9/30/2003 1.00 .011 (.011) 1.00 1.05 Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.35 Year ended 9/30/2001 1.00 .045 (.045) 1.00 4.63 Year ended 9/30/2000 1.00 .055 (.055) 1.00 5.66 Year ended 9/30/1999 1.00 .045 (.045) 1.00 4.59 CLASS B: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .13 Year ended 9/30/2002 1.00 .005 (.005) 1.00 .53 Year ended 9/30/2001 1.00 .037 (.037) 1.00 3.75 Period from 3/15/2000 to 9/30/2000 1.00 .027 (.027) 1.00 2.73 CLASS C: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Year ended 9/30/2002 1.00 .004 (.004) 1.00 .40 Period from 3/16/2001 to 9/30/2001 1.00 .014 (.014) 1.00 1.40 CLASS F: Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .16 Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 Year ended 9/30/2002 1.00 .011 (.011) 1.00 1.13 Period from 3/26/2001 to 9/30/2001 1.00 .017 (.017) 1.00 1.71 CLASS 529-A: Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .20 Year ended 9/30/2003 1.00 .007 (.007) 1.00 .66 Period from 2/15/2002 to 9/30/2002 1.00 .007 (.007) 1.00 .73 CLASS 529-B: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 6/7/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .09 CLASS 529-C: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 4/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .15 CLASS 529-E: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .002 (.002) 1.00 .22 Period from 3/11/2002 to 9/30/2002 1.00 .004 (.004) 1.00 .39 CLASS 529-F: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .10 Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43 Period from 9/16/2002 to 9/30/2002 1.00 - (8) - (8) 1.00 .04 CLASS R-1: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 5/29/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .10 CLASS R-2: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 5/21/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11 CLASS R-3: Six months ended 3/31/2004 (5) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .002 (.002) 1.00 .23 Period from 6/4/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .22 CLASS R-4: Six months ended 3/31/2004 (5) 1.00 .002 (.002) 1.00 .18 Year ended 9/30/2003 1.00 .006 (.006) 1.00 .55 Period from 6/27/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .23 CLASS R-5: Six months ended 3/31/2004 (5) 1.00 .003 (.003) 1.00 .32 Year ended 9/30/2003 1.00 .009 (.009) 1.00 .87 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .50
RATIO OF EXPENSES RATIO OF EXPENSES RATIO OF NET ASSETS, TO AVERAGE NET TO AVERAGE NET NET INCOME END OF PERIOD ASSETS BEFORE ASSETS AFTER TO AVERAGE (IN MILLIONS) REIMBURSEMENTS REIMBURSEMENTS (4) NET ASSETS CLASS A: Six months ended 3/31/2004 (5) $7,406 .57%(6) .25%(6) .77% Year ended 9/30/2003 7,910 .55 .23 1.05 Year ended 9/30/2002 8,305 .59 .59 1.33 Year ended 9/30/2001 7,075 .59 .59 4.48 Year ended 9/30/2000 5,417 .61 .61 5.53 Year ended 9/30/1999 5,863 .58 .58 4.52 CLASS B: Six months ended 3/31/2004 (5) 135 1.33 (6) .93 (6) .10 Year ended 9/30/2003 173 1.38 1.14 .14 Year ended 9/30/2002 158 1.40 1.40 .47 Year ended 9/30/2001 46 1.41 1.41 3.01 Period from 3/15/2000 to 9/30/2000 1 1.43 (6) 1.43 (6) 5.21 CLASS C: Six months ended 3/31/2004 (5) 71 1.50 (6) .93 (6) .10 Year ended 9/30/2003 89 1.55 1.16 .12 Year ended 9/30/2002 100 1.55 1.51 .31 Period from 3/16/2001 to 9/30/2001 13 1.59 (6) 1.55 (6) 2.05 CLASS F: Six months ended 3/31/2004 (5) 8 .73 (6) .69 (6) .33 Year ended 9/30/2003 7 .73 .73 .58 Year ended 9/30/2002 10 .77 .77 1.11 Period from 3/26/2001 to 9/30/2001 4 .80 (6) .80 (6) 3.09 CLASS 529-A: Six months ended 3/31/2004 (5) 101 .66 (6) .63 (6) .40 Year ended 9/30/2003 89 .62 .62 .61 Period from 2/15/2002 to 9/30/2002 34 .60 (6) .60 (6) 1.16 CLASS 529-B: Six months ended 3/31/2004 (5) 1 1.54 (6) .93 (6) .10 Year ended 9/30/2003 1 1.52 1.13 .12 Period from 6/7/2002 to 9/30/2002 - (7) .47 .47 .08 CLASS 529-C: Six months ended 3/31/2004 (5) 4 1.63 (6) .93 (6) .10 Year ended 9/30/2003 3 1.62 1.11 .11 Period from 4/2/2002 to 9/30/2002 1 .79 .75 .12 CLASS 529-E: Six months ended 3/31/2004 (5) 5 1.11 (6) .93 (6) .10 Year ended 9/30/2003 5 1.11 1.05 .17 Period from 3/11/2002 to 9/30/2002 1 1.09 (6) 1.09 (6) .66 CLASS 529-F: Six months ended 3/31/2004 (5) 3 .86 (6) .83 (6) .20 Year ended 9/30/2003 2 .85 .85 .33 Period from 9/16/2002 to 9/30/2002 - (7) .03 .03 .04 CLASS R-1: Six months ended 3/31/2004 (5) 9 1.56 (6) .93 (6) .10 (6) Year ended 9/30/2003 8 1.61 1.08 .10 Period from 5/29/2002 to 9/30/2002 1 .71 .51 .09 CLASS R-2: Six months ended 3/31/2004 (5) 281 1.73 (6) .93 (6) .10 (6) Year ended 9/30/2003 206 1.68 1.08 .11 Period from 5/21/2002 to 9/30/2002 23 .57 .52 .11 CLASS R-3: Six months ended 3/31/2004 (5) 181 1.11 (6) .93 (6) .10 (6) Year ended 9/30/2003 138 1.10 1.03 .17 Period from 6/4/2002 to 9/30/2002 15 .37 .34 .22 CLASS R-4: Six months ended 3/31/2004 (5) 33 .70 (6) .68 (6) .35 (6) Year ended 9/30/2003 26 .72 .72 .48 Period from 6/27/2002 to 9/30/2002 1 .30 .19 .27 CLASS R-5: Six months ended 3/31/2004 (5) 61 .42 (6) .38 (6) .65 (6) Year ended 9/30/2003 74 .41 .41 .84 Period from 5/15/2002 to 9/30/2002 49 .16 .16 .50
(1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) Total returns exclude all contingent deferred sales charges. (4) The ratios in this column reflect the impact, if any, of certain reimbursements and payments from CRMC. During some of the periods shown, CRMC reimbursed expenses, as provided by the Investment Advisory and Service Agreement. During the start-up period for the retirement share classes (except Class R-5), CRMC voluntarily agreed to pay a portion of the fees related to transfer agent services. In addition, during some of the periods shown, due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses for some of the share classes. (5) Unaudited. (6) Annualized. (7) Amount less than $1 million. (8) Amount less than $.001. See Notes to Financial Statements OTHER SHARE CLASS RESULTS CLASS B, CLASS C, CLASS F AND CLASS 529 unaudited Returns for periods ended March 31, 2004: 1 YEAR LIFE OF CLASS CLASS B SHARES Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%, payable only if shares are sold within six years of purchase - 4.90% + 1.29% (1) Not reflecting CDSC + 0.10% + 1.77% (1) CLASS C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase - 0.90% + 0.65% (2) Not reflecting CDSC + 0.10% + 0.65% (2) CLASS F SHARES (3) Not reflecting annual asset-based fee charged by sponsoring firm + 0.36% + 1.18% (4) CLASS 529-A SHARES + 0.45% + 0.75% (5) CLASS 529-B SHARES Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase - 4.90% - 2.08% (6) Not reflecting CDSC + 0.10% + 0.15% (6) CLASS 529-C SHARES Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase - 0.90% + 0.16% (7) Not reflecting CDSC + 0.10% + 0.16% (7) CLASS 529-E SHARES (3) + 0.11% + 0.32% (8) CLASS 529-F SHARES (3) Not reflecting annual asset-based fee charged by sponsoring firm + 0.24% + 0.37% (9)
Figures shown on this page are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For the most current information and month-end results, visit americanfunds.com. (1) Average annual total return from March 15, 2000, when Class B shares were first sold. (2) Average annual total return from March 16, 2001, when Class C shares were first sold. (3) These shares are sold without any initial or contingent deferred sales charge. (4) Average annual total return from March 26, 2001, when Class F shares were first sold. (5) Average annual total return from February 15, 2002, when Class 529-A shares were first sold. (6) Average annual total return from June 7, 2002, when Class 529-B shares were first sold. (7) Average annual total return from April 2, 2002, when Class 529-C shares were first sold. (8) Average annual total return from March 11, 2002, when Class 529-E shares were first sold. (9) Average annual total return from September 16, 2002, when Class 529-F shares were first sold. THE U.S. TREASURY MONEY FUND OF AMERICA INVESTMENT PORTFOLIO, March 31, 2004 unaudited PRINCIPAL MARKET YIELD AT AMOUNT VALUE SHORT-TERM SECURITIES - 100.17% ACQUISITION (000) (000) U.S. TREASURIES - 100.17% U.S. Treasury Bills 4-1-04 0.86%-0.89% $ 57,400 $ 57,399 U.S. Treasury Bills 4-8-04 0.87%-0.97% 50,000 49,991 U.S. Treasury Bills 4-15-04 0.90%-0.97% 75,000 74,974 U.S. Treasury Bills 4-22-04 0.88%-0.89% 60,000 59,969 U.S. Treasury Bills 4-29-04 0.91%-0.94% 50,000 49,964 U.S. Treasury Bills 5-6-04 0.88%-0.93% 81,100 81,028 U.S. Treasury Bills 5-13-04 0.91%-0.92% 18,600 18,580 U.S. Treasury Bills 5-20-04 0.94%-0.95% 25,000 24,970 U.S. Treasury Bills 6-3-04 0.94%-0.96% 49,000 48,922 U.S. Treasury Bills 6-10-04 0.93%-0.96% 24,300 24,257 U.S. Treasury Bills 6-17-04 0.93%-0.95% 24,800 24,751 U.S. Treasury Bills 6-24-04 0.94% 50,000 49,894 TOTAL INVESTMENT SECURITIES (cost: $564,682,000) 564,699 Other assets less liabilities (942) NET ASSETS $563,757
See Notes to Financial Statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES unaudited at March 31, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market (cost: $564,682) $564,699 Cash 241 Receivables for sales of fund's shares 1,121 566,061 LIABILITIES: Payables for: Repurchases of fund's shares $1,975 Dividends on fund's shares 5 Investment advisory services 128 Services provided by affiliates 172 Deferred Trustees' compensation 13 Other fees and expenses 11 2,304 NET ASSETS AT MARCH 31, 2004 $563,757 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $563,740 Net unrealized appreciation 17 NET ASSETS AT MARCH 31, 2004 $563,757 SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES AUTHORIZED SHARES NET ASSET NET ASSETS OUTSTANDING VALUE PER SHARE Class A $525,879 525,863 $1.00 Class R-1 775 775 1.00 Class R-2 17,481 17,480 1.00 Class R-3 11,895 11,895 1.00 Class R-4 2,139 2,139 1.00 Class R-5 5,588 5,588 1.00 See Notes to Financial Statements STATEMENT OF OPERATIONS unaudited for the six months ended March 31, 2004 (dollars in thousands) INVESTMENT INCOME: Income: Interest $2,778 Fees and expenses: Investment advisory services $916 Distribution services 393 Transfer agent services 415 Administrative services 82 Reports to shareholders 5 Registration statement and prospectus 73 Postage, stationery and supplies 93 Trustees' compensation 9 Auditing and legal 34 Custodian 11 State and local taxes 8 Other 21 Total expenses before reimbursement 2,060 Reimbursement of expenses 118 1,942 Net investment income 836 NET UNREALIZED DEPRECIATION ON INVESTMENTS (12) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $824 STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) SIX MONTHS YEAR ENDED ENDED MARCH 31, SEPTEMBER 30, 2004* 2003 OPERATIONS: Net investment income $836 $4,537 Net unrealized (depreciation) appreciation on investments (12) 13 Net increase in net assets resulting from operations 824 4,550 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME (835) (4,538) CAPITAL SHARE TRANSACTIONS (99,746) (24,951) TOTAL DECREASE IN NET ASSETS (99,757) (24,939) NET ASSETS: Beginning of period 663,514 688,453 End of period $563,757 $663,514 *Unaudited See Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS unaudited 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The U.S. Treasury Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income on cash reserves, while preserving capital and maintaining liquidity, through investments in U.S. Treasury securities maturing in one year or less. The fund offers six share classes consisting of one retail share class (Class A) and five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5). All share classes are sold without any sales charges and do not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of March 31, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of March 31, 2004, the cost of investment securities for federal income tax purposes was $564,682,000. As of March 31, 2004, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $18 Gross unrealized appreciation on investment securities 17 Tax basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): SIX MONTHS ENDED YEAR ENDED SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003 Class A $ 808 $ 4,486 Class R-1 -* -* Class R-2 8 10 Class R-3 6 8 Class R-4 2 4 Class R-5 11 30 Total $ 835 $ 4,538 * Amount less than one thousand. 3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on an annual rate of 0.300% on the first $800 million of daily net assets and 0.285% on such assets in excess of $800 million. For the six months ended March 31, 2004, the investment advisory services fee was $916,000. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, ranging from 0.15% to 1.00% as noted on the following page. In some cases, the Board of Trustees has approved expense amounts lower than plan limits. All share classes may use a portion (0.15% for Class A and 0.25% for all other share classes) of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. Expenses in excess of these amounts, up to approved limits, may be used to compensate dealers and wholesalers for shares sold. ----------------------------------------------------------------------- Share class Currently approved limits Plan limits ----------------------------------------------------------------------- ----------------------------------------------------------------------- Class A 0.15% 0.15% ----------------------------------------------------------------------- ----------------------------------------------------------------------- Class R-1 1.00 1.00 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Class R-2 0.75 1.00 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Class R-3 0.50 0.75 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Class R-4 0.25 0.50 ----------------------------------------------------------------------- TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all classes of shares other than Class A. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. During the start-up period for classes R-1, R-2 and R-3, CRMC has voluntarily agreed to pay a portion of these fees. For the six months ended March 31, 2004, the total fees paid by CRMC were $25,000. Administrative services fees are presented gross of any payments made by CRMC. Expenses under the agreements described above for the six months ended March 31, 2004, were as follows (dollars in thousands): ----------------------------------------------------------------------------------------- ADMINISTRATIVE SERVICES --------------------------------------- CRMC DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE TRANSFER AGENT SHARE CLASS SERVICES SERVICES SERVICES SERVICES ----------------------------------------------------------------------------------------- Class A $294 $415 Not applicable Not applicable ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-1 2 Included $ -* $ -* in administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-2 65 Included 13 47 in administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-3 29 Included 9 9 in administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-4 3 Included 2 -* in administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Class R-5 Not applicable Included 2 -* in administrative services ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- Total $393 $415 $26 $56 ========================================================================================= * Amount less than one thousand.
Due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses. For the six months ended March 31, 2004, the total fees paid by CRMC for classes R-1, R-2, R-3 and R-4 were $93,000. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): REINVESTMENTS NET (DECREASE) SALES(1) OF DIVIDENDS REPURCHASES(1) INCREASE SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES SIX MONTHS ENDED MARCH 31, 2004 Class A $201,368 201,368 $ 769 769 $ (307,579) (307,579) $(105,442) (105,442) Class R-1 723 723 -* -* (279) (279) 444 444 Class R-2 25,145 25,145 8 8 (22,250) (22,250) 2,903 2,903 Class R-3 6,825 6,825 6 6 (6,058) (6,058) 773 773 Class R-4 3,736 3,736 2 2 (3,092) (3,092) 646 646 Class R-5 6,856 6,856 7 7 (5,933) (5,933) 930 930 Total net increase (decrease) $244,653 244,653 $ 792 792 $ (345,191) (345,191) $(99,746) (99,746) YEAR ENDED SEPTEMBER 30, 2003 Class A $778,494 778,494 $4,259 4,259 $ (834,303) (834,303) $(51,550) (51,550) Class R-1 382 382 -* -* (270) (270) 112 112 Class R-2 49,988 49,988 9 9 (36,844) (36,844) 13,153 13,153 Class R-3 35,967 35,967 6 6 (24,898) (24,898) 11,075 11,075 Class R-4 6,541 6,541 4 4 (5,101) (5,101) 1,444 1,444 Class R-5 6,797 6,797 15 15 (5,997) (5,997) 815 815 Total net increase (decrease) $878,169 878,169 $4,293 4,293 $ (907,413) (907,413) $(24,951) (24,951) * Amount less than one thousand. (1) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the six months ended March 31, 2004, the custodian fee of $11,000 included $1,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) NET ASSET DIVIDENDS VALUE, NET FROM NET NET ASSET BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL OF PERIOD INCOME (2) INCOME OF PERIOD RETURN CLASS A: Six months ended 3/31/2004 (4) $1.00 $.001 $(.001) $1.00 .14% Year ended 9/30/2003 1.00 .006 (.006) 1.00 .63 Year ended 9/30/2002 1.00 .013 (.013) 1.00 1.29 Year ended 9/30/2001 1.00 .042 (.042) 1.00 4.27 Year ended 9/30/2000 1.00 .049 (.049) 1.00 5.01 Year ended 9/30/1999 1.00 .039 (.039) 1.00 4.00 CLASS R-1: Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 7/12/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .11 CLASS R-2: Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .001 (.001) 1.00 .12 Period from 6/11/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .08 CLASS R-3: Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .05 Year ended 9/30/2003 1.00 .002 (.002) 1.00 .18 Period from 8/16/2002 to 9/30/2002 1.00 .001 (.001) 1.00 .07 CLASS R-4: Six months ended 3/31/2004 (4) 1.00 .001 (.001) 1.00 .07 Year ended 9/30/2003 1.00 .004 (.004) 1.00 .43 Period from 8/2/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .17 CLASS R-5: Six months ended 3/31/2004 (4) 1.00 .002 (.002) 1.00 .22 Year ended 9/30/2003 1.00 .008 (.008) 1.00 .75 Period from 5/15/2002 to 9/30/2002 1.00 .005 (.005) 1.00 .47
RATIO OF EXPENSES RATIO OF EXPENSES RATIO OF NET ASSETS, TO AVERAGE NET TO AVERAGE NET NET INCOME END OF PERIOD ASSETS BEFORE ASSETS AFTER TO AVERAGE (IN MILLIONS) REIMBURSEMENT REIMBURSEMENT (3) NET ASSETS CLASS A: Six months ended 3/31/2004 (4) $526 .63% (5) .63% (5) .28% (5) Year ended 9/30/2003 631 .58 .58 .63 Year ended 9/30/2002 683 .63 .63 1.27 Year ended 9/30/2001 489 .66 .66 4.12 Year ended 9/30/2000 369 .62 .62 4.81 Year ended 9/30/1999 467 .59 .59 3.95 CLASS R-1: Six months ended 3/31/2004 (4) 1 .94 (5) .81 (5) .10 (5) Year ended 9/30/2003 - (6) 1.44 1.08 .12 Period from 7/12/2002 to 9/30/2002 - (6) .52 .32 .05 CLASS R-2: Six months ended 3/31/2004 (4) 17 1.09 (5) .81 (5) .10 (5) Year ended 9/30/2003 15 1.25 1.02 .10 Period from 6/11/2002 to 9/30/2002 1 .48 .44 .08 CLASS R-3: Six months ended 3/31/2004 (4) 12 .82 (5) .81 (5) .10 (5) Year ended 9/30/2003 11 1.04 .99 .11 Period from 8/16/2002 to 9/30/2002 - (6) .20 .13 .07 CLASS R-4: Six months ended 3/31/2004 (4) 2 .77 (5) .77 (5) .14 (5) Year ended 9/30/2003 2 .79 .77 .36 Period from 8/2/2002 to 9/30/2002 - (6) .33 .12 .15 CLASS R-5: Six months ended 3/31/2004 (4) 6 .46 (5) .46 (5) .44 (5) Year ended 9/30/2003 5 .46 .46 .73 Period from 5/15/2002 to 9/30/2002 4 .18 .18 .46
(1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) The ratios in this column reflect the impact, if any, of certain reimbursements and payments from CRMC. During the start-up period for the retirement share classes (except Class R-5), CRMC voluntarily agreed to pay a portion of the fees related to transfer agent services. In addition, during some of the periods shown, due to lower short-term interest rates, CRMC voluntarily agreed to pay a portion of the class-specific fees and expenses for some of the share classes. (4) Unaudited. (5) Annualized. (6) Amount less than $1 million. See Notes to Financial Statements THE TAX-EXEMPT MONEY FUND OF AMERICA Unaudited INVESTMENT PORTFOLIO, March 31, 2004 PRINCIPAL MARKET YIELD AT AMOUNT VALUE SHORT-TERM SECURITIES - 99.14% ACQUISITION (000) (000) ALABAMA - 1.28% Industrial Dev. Board of City of Montgomery, Pollution Control and Solid Waste Disposal Rev. Ref. Bonds (General Electric Co. Project), Series 1990, 0.95% 5/7/04 0.95% $5,000 $5,000 ARIZONA - 3.46% Salt River Project Agricultural Improvement & Power Dist., TECP, Series B: 0.95% 4/2/04 0.95 1,000 1,000 0.95% 4/8/04 0.95 2,006 2,006 0.92% 5/4/04 0.92 5,000 5,000 0.93% 5/7/04 0.93 5,500 5,500 CALIFORNIA - 0.77% San Diego Community College Dist., San Diego County, California, Tax-Exempt G.O. Bonds, Election 2002, Series 2003-A, FSA insured, 3.00% 5/1/04 0.99 3,000 3,005 DELAWARE - 0.51% Econ. Dev. Auth., Industrial Dev. Rev. Bonds (Clean Power Project), Series 1997-D, AMT, 1.10% 8/1/29 (1) 1.10 2,000 2,000 DISTRICT OF COLUMBIA - 6.23% Multimodal Rev. Bonds (The American National Red Cross Issue), Series 2000, TECP: 0.95% 4/5/04 0.95 3,800 3,800 0.95% 5/4/04 0.95 2,500 2,500 0.92% 5/5/04 0.92 8,000 8,000 Variable Rate Rev. Bonds (National Academy of Sciences Project), AMBAC insured, TECP: Series 1999-B: 0.93% 5/14/04 0.93 3,500 3,500 0.98% 5/24/04 0.98 4,500 4,500 Series 1999-C, 0.98% 5/28/04 0.98 2,000 2,000 FLORIDA - 12.35% State Board of Education, Public Education Capital Outlay Bonds, Series 1994-A, 5.875% 6/1/16 (preref. 6/1/04) 0.98 1,665 1,695 Municipal Power Agcy, Initial Pooled Loan Project, Series 1995-A, TECP: 0.96% 4/6/04 0.96 3,400 3,400 0.92% 5/17/04 0.92 2,000 2,000 Jacksonville County Electric Auth., Series 1993-C1, TECP: 0.95% 4/12/04 0.95 5,800 5,800 0.93% 5/17/04 0.93 2,349 2,349 0.93% 5/18/04 0.93 5,000 5,000 Pinellas County Educational Facs. Auth., Rev. Ref. Program Bonds (Pooled Independent Higher Education Institutions Loan Program), Series 1985, TECP, 0.97% 4/6/04 0.97 5,100 5,100 Sarasota County Public Hospital Dist., Hospital Rev. Bonds (Sarasota Memorial Hospital Project), TECP: Series 1985-B: 0.94% 5/19/04 0.94 1,000 1,000 0.95% 5/26/04 0.95 3,900 3,900 Series 1985-C, 0.92% 5/12/04 0.92 8,900 8,900 Sunshine State Governmental Fncg. Commission, Rev. Notes (Governmental Fncg. Program), AMBAC/FGIC insured, TECP: Series 2000-A: 0.97% 4/7/04 0.97 3,000 3,000 0.95% 5/27/04 0.95 3,135 3,135 Series 2000-D: 0.95% 5/6/04 0.95 1,500 1,500 0.92% 5/10/04 0.92 1,400 1,400 GEORGIA - 1.79% Municipal Electric Auth. of Georgia Power Project, TECP: Series 1985-A, 0.92% 4/12/04 0.92 4,000 4,000 Series 1985-B, 0.93% 5/7/04 0.93 2,000 2,000 Dev. Auth. of the Unified Government of Athens-Clarke County, Rev. Bonds (University of Georgia Athletic Association Project), Series 2003, 1.10% 8/1/33 (1) 1.10 1,000 1,000 INDIANA - 1.55% Health Fac. Fncg. Auth., Variable Rate Demand Rev. Bonds (Community Mental Health and Rehabilitation Facs. Designated Pool Program), Series 1990, 1.07% 11/1/20 (1) 1.07 2,050 2,050 County of Gibson, Pollution Control Rev. Bonds (Toyota Motor Manufacturing Project), AMT: (1) Series 2000-A, 1.06% 1/1/30 1.06 2,000 2,000 Series 2001-B, 1.06% 9/1/31 1.06 2,000 2,000 MAINE - 1.30% Municipal Bond Bank, Ref. Bonds, Series 2003-A, 4.00% 11/1/04 0.98 5,000 5,086 MARYLAND - 10.33% Health and Higher Educational Facs. Auth., Commercial Paper Rev. Notes: John Hopkins University Issue, Series 2001-A, 0.95% 5/3/04 0.95 8,729 8,729 Pooled Loan Program Rev. Bonds, Series 1994-D, 1.03% 1/1/29 (1) 1.03 990 990 Anne Arundel County, G.O. Bonds, Series A, TECP, 0.93% 4/21/04 0.93 7,650 7,650 Baltimore County, Consolidated Public Improvement Bond Anticipation Notes, Series 1995, TECP: 0.95% 4/1/04 0.95 2,000 2,000 0.92% 5/11/04 0.92 2,500 2,500 0.93% 5/13/04 0.93 5,000 5,000 0.94% 5/13/04 0.94 1,000 1,000 0.95% 6/1/04 0.95 2,000 2,000 0.95% 6/2/04 0.95 3,000 3,000 Frederick County, Consolidated Public Improvement Variable Rate Demand Bond Anticipation Notes, Series 1997, 1.02% 10/1/07 (1) 1.02 940 940 Howard County, Consolidated Public Improvement Bond Anticipation Notes, Series 2002-C, TECP, 0.92% 5/21/04 0.92 6,500 6,500 MASSACHUSETTS - 3.43% G.O. Ref. Bonds, Series 1998-A, 1.01% 9/1/16 (1) 1.01 2,900 2,900 Health and Educational Facs. Auth. Rev. Notes, Harvard University Issue, Series 2002-EE, TECP, 0.95% 4/8/04 0.95 1,500 1,500 Water Resources Auth., Series 1999, TECP: 0.95% 4/6/04 0.95 4,000 4,000 0.94% 5/5/04 0.94 5,000 5,000 MICHIGAN - 2.64% City of Detroit, Sewage Disposal System Rev. Ref. Bonds: (1) Series 1998-A, MBIA insured, 1.03% 7/1/23 1.03 2,495 2,495 Series 2003-B, FSA insured, 1.10% 7/1/33 1.10 1,000 1,000 Board of Trustees of Michigan State University, General Rev. Bonds, Series 2002-A, 1.10% 8/15/32 (1) 1.10 1,800 1,800 Regents of the University of Michigan, Series D, TECP, 0.93% 5/12/04 0.93 5,000 5,000 MINNESOTA - 2.44% City of Rochester, Health Care Facs. Rev. Bonds (Mayo Foundation/Mayo Medical Center), TECP: Series 2000-C, 0.94% 5/5/04 0.94 2,500 2,500 Series 2001-B, 0.95% 4/1/04 0.95 5,000 5,000 Series 2001-C, 0.94% 5/5/04 0.94 2,000 2,000 MISSISSIPPI - 0.39% Jackson County, Pollution Control Ref. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 1.10% 6/1/23 (1) 1.10 1,500 1,500 MISSOURI - 0.43% The Curators of the University of Missouri Systems Facs. Demand Rev. Bonds, Series 2001-A, 1.12% 11/1/31 (1) 1.12 1,690 1,690 NEVADA - 0.62% G.O. Limited Tax Bonds (Nevada Municipal Bond Bank Project), Series 2003-I, FGIC insured, 5.00% 11/1/04 0.99 2,370 2,424 NEW MEXICO - 0.49% Capital Projects G.O. Bonds, Series 2003, 4.00% 3/1/05 1.01 1,875 1,925 NEW YORK - 0.65% City of New York: Housing Dev. Corp., Multi-family Mortgage Rev. Bonds (Columbus Apartments), Series 1995-A, 1.03% 3/15/25 (1) 1.03 1,000 1,000 Transitional Fin. Auth. Recovery Bonds, Fiscal 2003 Series 3- Subseries 3A, 4.00% 11/1/04 0.98 1,510 1,536 NORTH CAROLINA - 2.20% Capital Facs. Fin. Agcy., Duke University Issue, Series A1, TECP: 0.92% 5/3/04 0.92 3,000 3,000 0.94% 5/19/04 0.94 5,600 5,600 OHIO - 2.79% Higher Education Capital Facs., G.O. Bonds, Series 2000-B, 5.25% 5/1/04 0.98 2,000 2,007 Highway Capital Improvements Bonds, Series E, 5.25% 5/1/04 0.98 1,275 1,279 Solid Waste Bonds, AMT: (1) Rev. Bonds (BP Exploration & Oil Inc. Project), Series 1999, 1.15% 8/1/34 1.15 2,400 2,400 Rev. Ref. Bonds (BP Products North America Inc. Project), Series 2002, 1.15% 8/1/34 1.15 1,200 1,200 Water Dev. Auth., Pollution Control Rev. Bonds (Ohio Edison Co. Project), Series 1988-B, AMT, 1.15% 9/1/18 (1) 1.15 1,000 1,000 Ohio State University, General Receipts, Series 2003-E, TECP, 0.92% 4/7/04 0.92 3,000 3,000 PENNSYLVANIA - 2.15% Delaware County, Industrial Dev. Auth., Variable Rate Demand Solid Waste Rev. Bonds (Scott Paper Co. Project), Series 1984-E, 1.05% 12/1/18 (1) 1.05 1,695 1,695 Montgomery County Industrial Dev. Auth., Pollution Control Rev. Ref. Bonds (PECO Energy Co. Project), Series 1994-A, TECP: 0.93% 4/1/04 0.93 3,000 3,000 0.95% 4/2/04 0.95 3,700 3,700 SOUTH CAROLINA - 2.15% Public Service Auth. (Santee Cooper), Rev. Notes, Series 1998, TECP: 0.95% 4/2/04 0.95 3,500 3,500 0.95% 4/7/04 0.95 2,500 2,500 0.93% 5/3/04 0.93 1,000 1,000 0.95% 5/10/04 0.95 1,400 1,400 TENNESSEE - 0.80% Public Building Auth. of the City of Clarksville, Adjustable Rate Pooled Fncg. Rev. Bonds (Municipal Bond Fund), Series 2003, 1.10% 1/1/33 (1) 1.10 1,110 1,110 Health, Educational and Housing Fac., Board of the County of Shelby, Variable Rate Rev. Bonds (Baptist Memorial Hospital Project), Series 2000, 1.01% 5/13/04 1.01 2,000 2,000 TEXAS - 17.62% G.O. Bonds, Series 1994-A, 5.75% 10/1/09 (preref. 10/1/04) 0.99 5,000 5,118 Public Fin. Auth., Rev. Notes, TECP: Series 2002-A, 0.95% 4/7/04 0.95 1,900 1,900 Series 2002-B: 0.97% 4/8/04 0.97 7,000 7,000 0.95% 4/12/04 0.95 3,950 3,950 Series 2003-B, 0.95% 5/10/04 0.95 2,000 2,000 Harris County: G.O. Notes, Series B, TECP, 0.95% 5/11/04 0.95 1,970 1,970 Health Facs. Dev. Corp., Rev. Bonds (YMCA of the Greater Houston Area), Series 2002, 1.12% 7/1/37 (1) 1.12 1,000 1,000 City of Houston G.O. Notes, TECP: Series A: 0.93% 4/7/04 0.93 2,500 2,500 0.93% 4/8/04 0.93 2,000 2,000 Series D: 0.93% 4/7/04 0.93 3,000 3,000 0.95% 5/19/04 0.95 5,000 5,000 City of Midlotian Industrial Dev. Corp., Variable Rate Demand Pollution Control Rev. Bonds (Box-Crow Cement Co. Project), Series 1984, 1.03% 12/1/09 (1) 1.03 1,900 1,900 City of San Antonio: Electric and Gas Systems Notes, Series A, TECP, 0.95% 4/2/04 0.95 5,500 5,500 Water System Notes, Series A: 0.95% 4/1/04 0.95 5,000 5,000 0.95% 4/8/04 0.95 5,600 5,600 Board of Regents of The University of Texas System, Permanent University Fund Flexible Rate Notes, Series 2002-A, TECP: 0.95% 4/2/04 0.95 2,000 2,000 0.90% 4/5/04 0.90 8,337 8,337 0.95% 5/11/04 0.95 5,000 5,000 UTAH - 3.52% Intermountain Power Agcy., Variable Rate Power Supply Rev. and Ref. Bonds: Series 1985-E, AMBAC insured: 0.95% 4/6/04 0.95 2,000 2,000 0.95% 5/6/04 0.95 1,000 1,000 Series 1985-F, AMBAC insured: 0.95% 5/6/04 0.95 5,500 5,500 0.94% 5/10/04 0.94 4,000 4,000 Series 1997-B, TECP, 0.95% 5/6/04 0.95 1,250 1,250 VIRGINIA - 8.37% Commonwealth Transportation Board, Federal Highway Reimbursement Anticipation Notes, Series 2000, 5.50% 10/1/04 1.04 2,500 2,556 Public School Auth., School Equipment Fncg. Notes, Educational Technology, Series 2000-VI, 5.125% 4/1/04 0.94 1,200 1,200 Fairfax County, Public Improvement Bonds: Series 1997-A, 6.00% 6/1/04 0.90 2,000 2,017 Series 2000-A, 5.25% 6/1/04 0.95 2,050 2,064 Metropolitan Washington Airports Auth., Flexible Term PFC Rev. Notes, Series 1999-A, AMT, TECP: 0.98% 4/5/04 0.98 4,000 4,000 0.98% 5/3/04 0.98 3,000 3,000 0.94% 5/20/04 0.94 2,500 2,500 1.02% 5/27/04 1.02 2,700 2,700 Peninsula Ports Auth. Coal Terminal Rev. Ref. Bonds (Dominion Terminal Associates Project), TECP: Series 1987-A, 0.92% 5/17/04 0.92 2,635 2,635 Series 1987-B: 0.92% 5/4/04 0.92 2,500 2,500 0.95% 5/4/04 0.95 3,000 3,000 City of Virginia Beach, G.O. Public Improvement Bonds, Series 2003-A, 2.50% 5/01/04 1.01 2,500 2,503 University of Virginia Issue Rev. Pledge Notes, Series 2003-A, TECP: 0.95% 5/4/04 0.95 1,000 1,000 0.95% 5/7/04 0.95 1,000 1,000 WASHINGTON - 5.16% Port of Seattle, Subordinate Lien Rev. Notes, TECP: Series 2004-B1, AMT, 0.99% 5/14/04 0.99 2,300 2,300 Series 1999-A1, 0.94% 5/18/04 0.94 4,315 4,315 City of Tacoma, Rev. Bond Anticipation Notes, Series 2002-2A, TECP: 0.92% 5/7/04 0.92 2,500 2,500 0.93% 5/25/04 0.93 7,000 6,999 Port of Tacoma, Subordinate Lien Rev. Notes, Series A, TECP, 0.98% 5/10/04 0.98 4,000 4,000 West Virginia - 1.05% Public Energy Auth., Energy Rev. Bonds (Morgantown Energy Associates Project), Series 1989-A, AMT: 1.00% 4/6/04 1.00 1,200 1,200 0.99% 5/14/04 0.99 2,900 2,900 WISCONSIN - 1.39% G.O. Notes, Series 1998-A, TECP: 0.93% 5/6/04 0.93 4,400 4,400 0.95% 5/6/04 0.95 1,000 1,000 Wyoming - 1.28% Sweetwater County, Customized Purchase Pollution Control Rev. Ref. Bonds (PacifiCorp Project), Series 1988-A, TECP: 0.92% 4/2/04 0.92 2,000 2,000 0.95% 4/16/04 0.95 3,000 3,000 TOTAL INVESTMENT SECURITIES (cost: $386,919,000) 386,910 Other assets less liabilities 3,372 NET ASSETS $390,282 (1) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date.
KEY TO ABBREVIATIONS Agcy. = Agency AMT = Alternative Minimum Tax Auth. = Authority Dev. = Development Dist. = District Econ. = Economic Fac. = Facility Facs. = Facilities Fin. = Finance Fncg. = Financing G.O. = General Obligation Preref. = Prerefunded Ref. = Refunding Rev. = Revenue TECP = Tax-Exempt Commercial Paper See Notes to Financial Statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES unaudited at March 31, 2004 (dollars and shares in thousands, except per-share amounts) ASSETS: Investment securities at market: (cost: $386,919) $386,910 Cash 1,094 Receivables for: Sales of fund's shares $3,527 Interest 985 4,512 392,516 LIABILITIES: Payables for: Repurchases of fund's shares 2,050 Dividends on fund's shares 5 Investment advisory services 123 Services provided by affiliates 32 Deferred Trustees' compensation 15 Other fees and expenses 9 2,234 NET ASSETS AT MARCH 31, 2004 $390,282 NET ASSETS CONSIST OF: Capital paid in on shares of beneficial interest $390,388 Distributions in excess of net investment income (97) Net unrealized depreciation (9) NET ASSETS AT MARCH 31, 2004 $390,282 SHARES OF BENEFICIAL INTEREST ISSUED AND OUTSTANDING - UNLIMITED SHARES AUTHORIZED SHARES NET ASSET NET ASSETS OUTSTANDING VALUE PER SHARE Class A $377,844 377,947 $1.00 Class R-5 12,438 12,441 1.00 See Notes to Financial Statements STATEMENT OF OPERATIONS for the six months ended March 31, 2004 INVESTMENT INCOME: unaudited Income: (dollars in thousands) Interest $1,773 Fees and expenses: Investment advisory services $701 Distribution services 91 Transfer agent services 66 Administrative services 7 Reports to shareholders 3 Registration statement and prospectus 54 Postage, stationery and supplies 25 Trustees' compensation 8 Auditing and legal 39 Custodian 9 State and local taxes 5 Other 17 1,025 Net investment income 748 NET UNREALIZED DEPRECIATION ON INVESTMENTS (5) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $743 See Notes to Financial Statements STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands) SIX MONTHS ENDED YEAR ENDED MARCH 31, 2004* SEPTEMBER 30, 2003 OPERATIONS: Net investment income $748 $2,100 Net unrealized depreciation on investments (5) (22) Net increase in net assets resulting from operations 743 2,078 DIVIDENDS PAID OR ACCRUED TO SHAREHOLDERS FROM NET INVESTMENT INCOME: (749) (2,101) CAPITAL SHARE TRANSACTIONS 26,996 11,833 TOTAL INCREASE IN NET ASSETS 26,990 11,810 NET ASSETS: Beginning of period 363,292 351,482 End of period $390,282 $363,292 *Unaudited See Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS unaudited 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION - The Tax-Exempt Money Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide income free from federal taxes, while preserving capital and maintaining liquidity, through investments in high-quality, municipal securities with effective maturities of one year or less. The fund offers two share classes consisting of one retail share class (Class A) and one retirement plan share class (Class R-5). Both share classes are sold without any sales charges and does not carry any conversion rights. Holders of all share classes have equal pro rata rights to assets, dividends and liquidation. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund: NET ASSET VALUE - The fund values its shares in accordance with Securities and Exchange Commission ("SEC") rules, using the penny-rounding method, which permits the fund to maintain a constant net asset value of $1.00 per share. SECURITY VALUATION - Fixed-income securities are valued at prices obtained from an independent pricing service, when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices or at prices for securities of comparable maturity, quality and type. Short-term securities maturing within 60 days are valued at amortized cost, which approximates market value. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith by authority of the fund's Board of Trustees. Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. CLASS ALLOCATIONS - Income, fees and expenses (other than class-specific fees and expenses) and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. DIVIDENDS TO SHAREHOLDERS - Dividends paid to shareholders are declared daily after the determination of the fund's net investment income and are paid to shareholders monthly. 2. FEDERAL INCOME TAXATION AND DISTRIBUTIONS The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income each year. The fund is not subject to income taxes to the extent such distributions are made. DISTRIBUTIONS - Distributions paid to shareholders are based on net investment income determined on a tax basis, which may differ from net investment income for financial reporting purposes. As of March 31, 2004, there were no material differences between book and tax reporting. The fiscal year in which amounts are distributed may differ from the year in which the net investment income is recorded by the fund. As of March 31, 2004, the cost of investment securities for federal income tax purposes was $386,919,000. As of March 31, 2004, the components of distributable earnings on a tax basis were as follows: (dollars in thousands) Undistributed net investment income $ 20 Short-term loss deferrals (expiring 2004 through 2011) (100) Gross unrealized depreciation on investment securities (9) Tax basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands): SIX MONTHS ENDED YEAR ENDED SHARE CLASS MARCH 31, 2004 SEPTEMBER 30, 2003 Class A $ 730 $ 2,056 Class R-5 19 45 Total $ 749 $ 2,101 3. FEES AND TRANSACTIONS WITH RELATED PARTIES Capital Research and Management Company ("CRMC"), the fund's investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund's transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund's shares. INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.390% on the first $200 million of daily net assets and decreasing to 0.290% on such assets in excess of $1.2 billion. For the six months ended March 31, 2004, the investment advisory services fee was $701,000, which was equivalent to an annualized rate of 0.381% of average daily net assets. CLASS-SPECIFIC FEES AND EXPENSES - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described on the following page: DISTRIBUTION SERVICES - The fund has adopted plans of distribution for Class A shares. Under the plans, the Board of Trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for annual expenses, based on a percentage of average daily net assets, of up to 0.15%. This class may use a portion of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with AFS for Class A shares. Under this agreement, this share class compensates AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. ADMINISTRATIVE SERVICES - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for Class R-5. This class pays CRMC annual fees of 0.10% based on its average daily net assets. This class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. DEFERRED TRUSTEES' COMPENSATION - Since the adoption of the deferred compensation plan in 1993, Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund. These amounts represent general, unsecured liabilities of the fund and vary according to the total return of the fund. Trustees' compensation in the accompanying financial statements includes the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts. AFFILIATED OFFICERS AND TRUSTEES - Officers and certain Trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or Trustees received any compensation directly from the fund. 4. CAPITAL SHARE TRANSACTIONS Capital share transactions in the fund were as follows (dollars and shares in thousands): REINVESTMENTS SALES(1) OF DIVIDENDS REPURCHASES(1) NET INCREASE SHARE CLASS AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES SIX MONTHS ENDED MARCH 31, 2004 Class A $250,052 250,052 $ 702 702 $(226,243) (226,243) $24,511 24,511 Class R-5 33,902 33,902 13 13 (31,430) (31,430) 2,485 2,485 Total net increase (decrease) $283,954 283,954 $ 715 715 $(257,673) (257,673) $26,996 26,996 YEAR ENDED SEPTEMBER 30, 2003 Class A $416,952 416,952 $1,948 1,948 $(407,232) (407,232) $11,668 11,668 Class R-5 31,199 31,199 35 35 (31,069) (31,069) 165 165 Total net increase (decrease) $448,151 448,151 $1,983 1,983 $(438,301) (438,301) $11,833 11,833 (1) Includes exchanges between share classes of the fund.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES The fund receives a reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the six months ended March 31, 2004, the custodian fee of $9,000 included $1,000 that was offset by this reduction, rather than paid in cash. FINANCIAL HIGHLIGHTS (1) NET ASSET DIVIDENDS VALUE, NET FROM NET NET ASSET BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL OF PERIOD INCOME(2) INCOME OF PERIOD RETURN CLASS A: Six months ended 3/31/2004 (3) $1.00 $.002 (.002) $1.00 .20% Year ended 9/30/2003 1.00 .006 (.006) 1.00 .57 Year ended 9/30/2002 1.00 .010 (.010) 1.00 1.05 Year ended 9/30/2001 1.00 .029 (.029) 1.00 2.92 Year ended 9/30/2000 1.00 .032 (.032) 1.00 3.29 Year ended 9/30/1999 1.00 .025 (.025) 1.00 2.51 CLASS R-5: Six months ended 3/31/2004 (3) 1.00 .002 (.002) 1.00 .19 Year ended 9/30/2003 1.00 .005 (.005) 1.00 .54 Period from 7/15/2002 to 9/30/2002 1.00 .002 (.002) 1.00 .17 RATIO OF RATIO OF NET ASSETS, EXPENSES NET INCOME END OF PERIOD TO AVERAGE TO AVERAGE (IN MILLIONS) NET ASSETS NET ASSETS CLASS A: Six months ended 3/31/2004 (3) $378 .54% (4) .42% (4) Year ended 9/30/2003 353 .55 .57 Year ended 9/30/2002 341 .54 1.04 Year ended 9/30/2001 319 .52 2.86 Year ended 9/30/2000 276 .64 3.23 Year ended 9/30/1999 255 .65 (5) 2.33 CLASS R-5: Six months ended 3/31/2004 (3) 12 .58 (4) .38 (4) Year ended 9/30/2003 10 .58 .55 Period from 7/15/2002 to 9/30/2002 10 .12 .17 (1) Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. (2) Year ended 1999 is based on shares outstanding on the last day of the year; all other periods are based on average shares outstanding. (3) Unaudited. (4) Annualized. (5) Had CRMC not waived investment advisory services, the fund's expense ratio would have been .68%.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER Capital Research and Management Company 333 South Hope Street Los Angeles, CA 90071-1406 135 South State College Boulevard Brea, CA 92821-5823 TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS American Funds Service Company (Please write to the address nearest you.) P.O. Box 25065 Santa Ana, CA 92799-5065 P.O. Box 659522 San Antonio, TX 78265-9522 P.O. Box 6007 Indianapolis, IN 46206-6007 P.O. Box 2280 Norfolk, VA 23501-2280 CUSTODIAN OF ASSETS JPMorgan Chase Bank 270 Park Avenue New York, NY 10017-2070 COUNSEL Paul, Hastings, Janofsky & Walker LLP 515 South Flower Street Los Angeles, CA 90071-2228 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 350 South Grand Avenue Los Angeles, CA 90071-2889 PRINCIPAL UNDERWRITER American Funds Distributors, Inc. 333 South Hope Street Los Angeles, CA 90071-1406 Most American Funds offer several share classes, each with its own sales charge and expense structure allowing you to choose the one that best meets your financial needs. The three American Funds money market funds each offer Class A shares at no sales charge. The Cash Management Trust of America (CMTA) is the only American Funds money market fund that offers Class B, Class C, Class F and Class 529 shares. CMTA classes B, C and F shares may be acquired only by exchanging from other American Funds within the same share class (i.e., they may not be purchased directly) and do not offer check-writing privileges. American Funds classes B, C and F shares are subject to additional annualized expenses and fees, including, in the case of B and C shares, higher 12b-1 fees and contingent deferred sales charges if Class B shares are redeemed within six years of purchase and Class C shares are redeemed within one year of purchase. Classes B, C and F shares are not available to certain employer-sponsored retirement plans. See the CMTA prospectus for further details. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE CASH MANAGEMENT TRUST OF AMERICA, THE U.S. TREASURY MONEY FUND OF AMERICA, THE TAX-EXEMPT MONEY FUND OF AMERICA AND COLLEGEAMERICA. THIS AND OTHER IMPORTANT INFORMATION IS CONTAINED IN THE PROSPECTUS, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISER AND SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE COMPANY AT 800/421-0180 OR VISIT THE AMERICAN FUNDS WEBSITE AT AMERICANFUNDS.COM. "AMERICAN FUNDS PROXY VOTING GUIDELINES" -- WHICH DESCRIBES HOW WE VOTE PROXIES RELATING TO PORTFOLIO SECURITIES -- IS AVAILABLE UPON REQUEST, FREE OF CHARGE, BY CALLING AMERICAN FUNDS SERVICE COMPANY, VISITING THE AMERICAN FUNDS WEBSITE OR ACCESSING THE U.S. SECURITIES AND EXCHANGE COMMISSION WEBSITE AT WWW.SEC.GOV. This report is for the information of shareholders of The Cash Management Trust of America, The U.S. Treasury Money Fund of America and The Tax-Exempt Money Fund of America, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after June 30, 2004, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter. [logo - American Funds(R)] The right choice for the long term(R) WHAT MAKES AMERICAN FUNDS DIFFERENT? For more than 70 years, we have followed a consistent philosophy that we firmly believe is in our investors' best interests. The range of opportunities offered by our family of just 29 carefully conceived, broadly diversified funds has attracted over 25 million shareholder accounts. Our unique combination of strengths includes these five factors: o A LONG-TERM, VALUE-ORIENTED APPROACH Rather than follow fads, we pursue a consistent strategy, focusing on each investment's long-term potential. o AN UNPARALLELED GLOBAL RESEARCH EFFORT American Funds draws on one of the industry's most globally integrated research networks. o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM Every American Fund is divided among a number of portfolio counselors. Each takes responsibility for a portion independently, within each fund's objectives; in most cases, research analysts manage a portion as well. Over time this method has contributed to a consistency of results and continuity of management. o EXPERIENCED INVESTMENT PROFESSIONALS The recent market decline was not the first for most of the portfolio counselors who serve the American Funds. Nearly 70% of them were in the investment business before the sharp market decline of 1987. o A COMMITMENT TO LOW OPERATING EXPENSES American Funds' operating expenses are among the lowest in the mutual fund industry. Our portfolio turnover rates are low as well, keeping transaction costs and tax consequences contained. 29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS o GROWTH FUNDS AMCAP Fund(R) EuroPacific Growth Fund(R) The Growth Fund of America(R) The New Economy Fund(R) New Perspective Fund(R) New World FundSM SMALLCAP World Fund(R) o GROWTH-AND-INCOME FUNDS American Mutual Fund(R) Capital World Growth and Income FundSM Fundamental InvestorsSM The Investment Company of America(R) Washington Mutual Investors FundSM o EQUITY-INCOME FUNDS Capital Income Builder(R) The Income Fund of America(R) o BALANCED FUND American Balanced Fund(R) o BOND FUNDS American High-Income TrustSM The Bond Fund of AmericaSM Capital World Bond Fund(R) Intermediate Bond Fund of America(R) U.S. Government Securities FundSM o TAX-EXEMPT BOND FUNDS American High-Income Municipal Bond Fund(R) Limited Term Tax-Exempt Bond Fund of AmericaSM The Tax-Exempt Bond Fund of America(R) STATE-SPECIFIC TAX-EXEMPT FUNDS The Tax-Exempt Fund of California(R) The Tax-Exempt Fund of Maryland(R) The Tax-Exempt Fund of Virginia(R) o MONEY MARKET FUNDS The Cash Management Trust of America(R) The Tax-Exempt Money Fund of AmericaSM The U.S. Treasury Money Fund of AmericaSM THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust Lit. No. MFGESR-960-0504 Litho in USA AGD/AL/8090 Printed on recycled paper ITEM 2 - Code of Ethics Not applicable for filing of Semiannual Reports to Shareholders. ITEM 3 - Audit Committee Financial Expert Not applicable for filing of Semiannual Reports to Shareholders. ITEM 4 - Principal Accountant Fees and Services Not applicable for filing of Semiannual Reports to Shareholders. ITEM 5 - Audit Committee of Listed Registrants Not applicable. ITEM 6 - Reserved ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 8 - Reserved ITEM 9 - Submission of Matters to a Vote of Security Holders There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees since the registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The registrant has a nominating committee comprised solely of persons who are not considered "interested persons" of the registrant within the meaning of the Investment Company Act of 1940. The committee periodically reviews such issues as the Board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board. Such suggestions must be sent in writing to the nominating committee of the registrant, c/o the registrant's Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating committee. ITEM 10 - Controls and Procedures (a) The officers providing the certifications in this report in accordance with rule 30a-2 under the Investment Company Act of 1940 have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as such term is defined in such rule), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. (b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 11 - Exhibits (a) The Code of Ethics - not applicable for filing of Semiannual Reports to Shareholders. (b) The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE U.S. TREASURY MONEY FUND OF AMERICA By /s/ Abner D. Goldstine Abner D. Goldstine, President and PEO Date: June 8, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ Abner D. Goldstine Abner D. Goldstine, President and PEO Date: June 8, 2004 By /s/ Susi M. Silverman Susi M. Silverman, Treasurer Date: June 8, 2004