Money market funds have merged
July 10, 2009
On July 10, The Cash Management Trust of America® and The U.S. Treasury Money Fund of AmericaSM were merged into the new American Funds Money Market FundSM, which was introduced on May 1. Shares of the two funds were automatically exchanged for an equal number of shares of American Funds Money Market Fund.
Capital Research and Management CompanySM (CRMC), the investment adviser to American Funds, had been reimbursing some expenses of The Cash Management Trust of America and The U.S. Treasury Money Fund of America with the goal of maintaining a $1.00 per share net asset value. In the current low-interest rate environment, CRMC will continue to reimburse some expenses of the new fund.
For more information about American Funds Money Market Fund, please contact your financial professional or read the prospectus.
Frequently asked questions
- When did the merger of The Cash Management Trust of America and The U.S. Treasury Money Fund of America into the new American Funds Money Market Fund take place?
- What impact does the merger have on my retirement plan account?
- Do my contribution elections or any pending rebalancer transactions involving The Cash Management Trust of America and/or The U.S. Treasury Money Fund of America carry over to the new money market fund?
- Are there any tax consequences?
Q: When did the merger of The Cash Management Trust of America and The U.S. Treasury Money Fund of America into the new American Funds Money Market Fund take place?
A: The merger occurred on July 10.
Q: What impact does the merger have on my retirement plan account?
A: Any money that you had in The Cash Management Trust of America and The U.S. Treasury Money Fund of America was automatically moved into American Funds Money Market Fund on the date of the merger.
Q: Do my contribution elections or any pending rebalancer transactions involving The Cash Management Trust of America and/or The U.S. Treasury Money Fund of America carry over to the new money market fund?
A: All your elections and pending rebalancer transactions involving The Cash Management Trust of America and/or The U.S. Treasury Money Fund of America have been carried over to American Funds Money Market Fund. You don’t need to make any changes.
Q: Are there any tax consequences?
A: The mergers were tax-free exchanges and have no tax consequences for plans or participants.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. Although cash-equivalent funds seek to preserve the value of your investment at $1.00 a share, it is possible to lose money by investing in them. Fund shares are not guaranteed by the U.S. government.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus and/or summary prospectus, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing.