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Detailed Fund Information

The Tax-Exempt Fund of California® (tax-exempt bond fund)

Class F-2 shares

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Daily Prices

Updated April 17, 2014, 3:19PM Pacific time

Net Asset Value (NAV) $17.32
NAV Change $0.00

(All prices are subject to revision.)

Historical Prices & Distributions

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Ticker Symbols & Fund Numbers

Fund Number 620
Ticker/Quotron Symbol TEFEX
CUSIP Number 02630B 60 4

Fund Description

Fund Objective The fund's primary investment objective is to provide a high level of current income exempt from regular federal and California income taxes. Its secondary objective is preservation of capital.
Distinguishing Characteristics Provides California residents with tax-exempt income through investments that provide funding for important public services and projects. The fund is intended primarily for taxable residents of California and may not be appropriate for residents of other states and tax-exempt entities.
Types of Investments Invests primarily in debt securities rated BBB- or better or Baa3 or better (or unrated, but determined by the fund’s investment adviser to be of equivalent quality).
Maturity Typically, the fund will be invested substantially in securities with maturities in excess of three years.
Portfolio Restrictions No more than 10% of assets may be invested in securities rated BB+ or below and Ba1 or below (or unrated, but determined by the fund’s investment adviser to be of equivalent quality).

Fund Facts

Minimum Initial Investment $1,000
Shareholder Accounts (aggregated for all share classes; updated monthly) 17,095
Regular Dividends Paid Monthly
Capital Gains Paid
Fund Inception October 28, 1986
Fiscal Year-End July

The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.

Returns & Expenses

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Results shown at net asset value have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Share price and return will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Definitions and other important legal information about these prices and returns are shown below.

Rates of Return*

  Average Annual Total Returns
1 yr 3 yrs 5 yrs 10 yrs Fund Lifetime
March 31, 2014 (most recent month-end)
NAV 0.96% 7.95% 8.01% 4.51% 5.88%
March 31, 2014 (most recent quarter-end)
NAV 0.96% 7.95% 8.01% 4.51% 5.88%

Expense Ratios

The Tax-Exempt Fund of California 0.51%
Lipper California Municipal Debt Funds Average 0.52%

12-Month Distribution Rates

As of March 31, 2014 (updated monthly)

NAV 3.84%

Annualized 30-Day SEC Yield

As of March 31, 2014 (updated monthly)

At net asset value 2.80%


Portfolio Summary

% of net assets as of March 31, 2014 (updated quarterly)

Cash & equivalents 7.9%
Municipal Securities 92.1%

Quality Summary

% of net assets as of March 31, 2014 (updated quarterly)

AAA/Aaa 3.5%
AA/Aa 26.3%
A 29.2%
BBB/Baa 19.2%
BB/Ba 4.0%
B 1.8%
CCC & Below 0.0%
Unrated 8.1%
Cash & equivalents 7.9%

as of March 31, 2014 (updated quarterly)

Average Life (years) 6.3
Average Duration (years) 6.7

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

Portfolio Holdings

(updated quarterly, upon availability)

Asset Mix

as of March 31, 2014 (updated monthly)

U.S. Bonds 92.1%
Cash & Equivalents 7.9%

Assets and Portfolio Turnover (for fiscal years)

Fiscal Year Fund Assets (billions) Portfolio Turnover
2013 $1.5 12%
2012 $1.6 15%
2011 $1.4 10%
2010 $1.7 18%
2009 $1.6 17%

Assets shown are for combined share classes.

Portfolio Managers

Number of years with American Funds or affiliates
Neil L. Langberg 37
Karl J. Zeile 14

(as of the prospectus dated October 1, 2013)

The portfolio managers shown are reflected in the fund’s most recent prospectus.

Important Legal Information

The fund is more susceptible to factors adversely affecting issuers of its state's tax-exempt securities than a more widely diversified municipal bond fund.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Income may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

* Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. View dates of first sale and specific expense adjustment information for Class F-2 shares.

  When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.

Source for Lipper expense ratio comparison: Lipper, based on institutional load funds, excluding funds of funds, for the most recent fiscal year-ends available as of March 31, 2014. Expenses are as of the fund’s prospectus. The expense ratios do not reflect sales charges or fees charged by financial intermediaries.

The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities, while the distribution rate reflects the fund's past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.