Form N-CSR AMERICAN FUNDS SHORT-TER For: Jul 31

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September 28, 2018 10:59 AM EDT

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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: 811-05750

American Funds Short-Term Tax-Exempt Bond Fund

(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: July 31

Date of reporting period: July 31, 2018

Steven I. Koszalka

American Funds Short-Term Tax-Exempt Bond Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

ITEM 1 – Reports to Stockholders

American Funds Short-Term Tax-Exempt Bond Fund^® Limited Term Tax-Exempt Bond Fund of America^® The Tax-Exempt Bond Fund of America^® American High-Income Municipal Bond Fund^® The Tax-Exempt Fund of California^® American Funds Tax-Exempt Fund of New York^®

Annual reports for the year ended July 31, 2018

Invest in
municipal bonds
for tax-advantaged
income.

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital.

American High-Income Municipal Bond Fund seeks to provide a high level of current income exempt from regular federal income tax.

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is preservation of capital.

American Funds Tax-Exempt Fund of New York seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes. Its secondary objective is preservation of capital.

Each fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For more than 85 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge had been deducted (maximum 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; 3.75% for The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York), the results would have been lower. Results are for past periods and are not predictive of results for 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. Investing for short periods makes losses more likely. For current information and month-end results, visit americanfunds.com.

Here are the total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2018 (the most recent calendar quarter-end), and the total annual fund operating expense ratios as of the prospectus dated October 1, 2018 (unaudited):

	Cumulative total returns			Average annual total returns						Gross
Class A shares	1 year			5 years			10 years/Lifetime*			expense ratios

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		–2.18	%		0.25	%		0.83	%		.58	%
Limited Term Tax-Exempt Bond Fund of America		–1.84			1.14			2.71			.59
Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		–1.71			2.82			3.92			.52
American High-Income Municipal Bond Fund		0.55			4.66			5.08			.68
The Tax-Exempt Fund of California		–1.56			3.10			4.37			.60
American Funds Tax-Exempt Fund of New York		–2.50			2.44			3.09			.72	^†

*	Applicable only to American Funds Tax-Exempt Fund of New York, which began operations on 11/1/10. All other funds reflect 10-year results.
^†	The net expense ratio for American Funds Tax-Exempt Fund of New York is .68% as of the prospectus dated October 1, 2018 (unaudited).

For other share class results, visit americanfunds.com.

The 10-year investment result for American Funds Short-Term Tax-Exempt Bond Fund includes the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore is not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of that period. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Fund of New York. Investment results and the net expense ratio reflect the reimbursement, without which the results would have been lower and the expense ratio would have been higher. This reimbursement will be in effect through at least October 1, 2019, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Visit americanfunds.com for more information.

A summary of each fund’s 30-day yield can be found on page 3.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

		Contents

1		Letter to investors

4		Fund reviews

		Investment portfolios

17		American Funds Short-Term Tax-Exempt Bond Fund

22		Limited Term Tax-Exempt Bond Fund of America

27		The Tax-Exempt Bond Fund of America

33		American High-Income Municipal Bond Fund

39		The Tax-Exempt Fund of California

43		American Funds Tax-Exempt Fund of New York

48		Financial statements

95		Boards of trustees and other officers

Fellow investors:

We are pleased to present this report for American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York. It covers the 12-month period ended July 31, 2018, the conclusion of the funds’ fiscal year.

Rising interest rates, investor enthusiasm for riskier assets and uncertainty about the implications of tax reform weighed on the municipal bond market over the period. Yet in spite of this, tax-exempt bond prices generally finished higher, and all six funds generated positive results. Total returns ranged from 4.05% for American High-Income Municipal Bond Fund to 0.24% for American Funds Short-Term Tax-Exempt Bond Fund. (See pages 4 through 16 for fund specific results and information.)

Economic and market overview

Municipal bond yields rose modestly during the funds’ fiscal year, but total returns outpaced the broader taxable fixed income market. Signs of emerging inflation and uncertainty around global trade policy sparked bouts of volatility. In taxable fixed income markets, bond prices fell on pressure from interest rate hikes and signs of higher inflation amid robust U.S. economic growth. The yield on the benchmark 10-year Treasury note climbed 66 basis points to end the period at 2.96%. At the end of April it briefly drifted above 3% for the first time in four years. By way of comparison, the yield on AAA-rated municipal bonds, as measured by Bloomberg Valuation Service (BVAL), rose 60 basis points to 2.49%.

The U.S. economy grew 4.1% in the second quarter, powered by strong exports and a rebound in consumer spending. The unemployment rate hit 3.8% in May, matching the lowest reading in nearly 50 years. This tight labor market helped to push wages to their highest average growth in a decade. There were also signs of inflation picking up. At 2.9% year-over-year in June, the Consumer Price Index (CPI) hit a level not seen since 2012. Core CPI, which removes volatile food and energy prices, rose to 2.2%. The Federal Reserve continued to reduce its balance sheet. However, the central bank also increased sales of Treasury bonds to help fund the federal deficit. As expected, it raised the federal funds rate by 25 basis points in June to a range of 1.75% to 2.00%, its second hike of the year. Chairman Jay Powell continued to stress that rate increases would be gradual.

The passage of the Tax Cuts and Jobs Act of 2017 (TCJA) in December fueled municipal market instability early in 2018 as investors grappled with its potential impact on tax-exempt bonds. The legislation also resulted in distortions in supply-and-demand dynamics in the municipal market. One provision eliminated the tax-exempt status for advance refunding bonds, which local governments utilize to reduce their interest rate expenses. Municipal bond issuance set a new single-month record last December, as local governments sought to issue before the law took effect. The $62.5 billion in offerings surpassed the old record of $54.7 billion set in December 1985, just prior to the last comprehensive tax overhaul. Since the start of the year, however, issuance has declined substantially. As of June 30, municipal bond issuance was $161 billion, about 20% lower than the $201 billion issued in the first half of 2017.

Demand for municipal bonds has been generally solid since January. Year-to-date fund inflows stood at about $13.7 billion at the end of July, according to data from the Investment Company Institute. This demand, coupled with lower supply, resulted in tighter spreads, which helped

American Funds Tax-Exempt Funds

drive the positive market return. Municipal bonds of lower credit quality recorded the strongest gains of the period, as reflected in the 6.82% increase posted by the Barclays High Yield Municipal Bond Index (a market value-weighted index composed of municipal bonds rated below BBB/Baa). By comparison, the Barclays Municipal Bond Index, a broad measure of the investment-grade market (bonds rated BBB/Baa and above), advanced 0.99%.

Inside the portfolios

The funds covered in this report continued to focus chiefly on revenue bonds, which support essential services such as water, sewer and electric utilities. This approach proved additive, as revenue bonds produced higher returns than general obligation bonds overall. As has been the case for a number of years — given much tighter spreads across the municipal curve, the stronger economy and rising rates — most of the funds took a relatively conservative approach to the market, maintaining comparatively short duration positions and focusing on bonds of higher quality.

Looking ahead

With the economy healthy and the Fed proceeding with rate hikes, we expect a more challenging environment going forward. We are preparing for muted returns and further volatility. Any increase in supply could put some downward pressure on valuations. After a strong rally in 2017, the municipal bond market has continued to deliver positive results, particularly among higher yielding bonds. In contrast to the taxable market, spreads have gotten increasingly tighter. Given what is in our view limited reward potential for taking additional risk at this point in the market cycle, we are focusing on higher quality bonds across the portfolios.

That said, while broader interest rate moves may create instability in munis, we continue to identify what we believe are promising investment opportunities, chiefly with respect to revenue bond issuers in sectors such as not-for-profit hospitals, transportation, housing and education. Lastly, despite the tax cuts, the after-tax income potential of municipal bonds remains compelling, and we believe municipal bond funds can continue to play a key role in diversified portfolios.

We thank you for the confidence you have placed in us and endeavor to be responsible stewards of your capital.

We look forward to reporting to you again in six months’ time.

Sincerely,

Neil L. Langberg

President, American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California

Chad M. Rach

President, American High-Income Municipal Bond Fund

Jerome H. Solomon

President, American Funds Tax-Exempt Fund of New York

Karl J. Zeile

President, The Tax-Exempt Bond Fund of America

September 13, 2018

For current information about the funds, visit americanfunds.com.

The market indexes shown are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

2	American Funds Tax-Exempt Funds

Funds’ 30-day yields

Below is a summary of each fund’s 30-day yield and 12-month distribution rate for Class A shares as of August 31, 2018. Both measures reflect the 2.50%/3.75% maximum sales charge. Each fund’s 30-day yield is calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula. The SEC yield reflects the rate at which each fund is earning income on its current portfolio of securities while the distribution rate reflects the funds’ past dividends paid to shareholders. Accordingly, the funds’ SEC yields and distribution rates may differ. The equivalent taxable yield assumes a 43.4% tax rate.¹

Class A shares	SEC 30-day yield			Equivalent taxable yield			12-month distribution rate

Reflecting 2.50% maximum sales charge
American Funds Short-Term Tax-Exempt Bond Fund		1.52	%		2.69	%		1.32	%
Limited Term Tax-Exempt Bond Fund of America		1.73			3.06			1.96

Reflecting 3.75% maximum sales charge
The Tax-Exempt Bond Fund of America		2.27			4.01			2.80
American High-Income Municipal Bond Fund		2.92			5.16			3.52
The Tax-Exempt Fund of California		1.85			4.03	²		2.80
American Funds Tax-Exempt Fund of New York		2.02			4.01	³		2.46

¹	Based on 2018 federal tax rates. For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 40.8% marginal tax rate on their investment income. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
²	For investors in the 54.10% federal and California state tax bracket.
³	For investors in the 49.62% federal, New York state and New York City tax bracket.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Income may be subject to state or local income taxes and/or federal alternative minimum taxes. Also, certain other income (such as distributions from gains on the sale of certain bonds purchased at less than par value, for The Tax-Exempt Bond Fund of America), as well as capital gain distributions, may be taxable. High-yield/lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade/higher rated bonds. The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York are more susceptible to factors adversely affecting issuers of each state’s tax-exempt securities than a more widely diversified municipal bond fund. Refer to the funds’ prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

The fund registered a total return of 0.24% for the fiscal year, trailing the 0.48% return of the Bloomberg Barclays Municipal Short 1–5 Years Index, a market value-weighted index that includes investment-grade tax-exempt bonds (rated BBB/Baa and above) with maturities of one to five years. The fund also lagged the Lipper Short Municipal Debt Funds Average, a peer group measure, which recorded a 0.61% return.

The fund paid monthly dividends totaling 13 cents a share for the 12 months. This amounts to a federally tax-exempt income return of 1.33% for investors who reinvested dividends. This is equivalent to a taxable income return of 2.25% for investors in the 40.8%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

In a period of rising rates and tightening credit spreads, the fund’s managers maintained a conservative approach to the market, focusing on higher quality bonds. As of July 31, 2018, some 74% of the portfolio was invested in bonds rated AAA/Aaa or AA/Aa. Among the fund’s largest contributors were revenue bonds supporting toll roads and hospital facilities.

The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please view the Quarterly Statistical Update, available at americanfunds.com.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 1.30% tax-exempt distribution rate³as of July 31, 2018.

If your taxable income is …						… then your federal			The fund’s tax-exempt distribution rate of 1.30% is
Single			Joint			tax rate is …			equivalent to a taxable rate of …

$	0 –	9,525	$	0 –	19,050		10.0	%		1.44	%
	9,526 –	38,700		19,051 –	77,400		12.0			1.48
	38,701 –	82,500		77,401 –	165,000		22.0			1.67
	82,501 –	157,500		165,001 –	250,000		24.0			1.71
	–			250,001 –	315,000		27.8	¹		1.80
	157,501 –	200,000		–			32.0			1.91
	–			315,001 –	400,000		35.8	¹		2.02
	200,001 –	500,000		400,001 –	600,000		38.8	¹		2.12
	Over 500,000			Over 600,000			40.8	¹		2.20


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 40.8% marginal tax rate on their investment income.
²	Based on 2018 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 2.50% on the $10,000 investment.¹Thus, the net amount invested was $9,750. Results are for past periods and are not predictive of results for 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 and month-end results, visit americanfunds.com.

4	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
²	Consists of the Lipper Tax-Exempt Money Market Funds Index through July 31, 2009 (the period ended prior to the fund’s conversion from a tax-exempt money market fund to a short-term tax-exempt bond fund), and the Bloomberg Barclays Municipal Short 1–5 Years Index thereafter. Results of the Lipper Tax-Exempt Money Market Funds Index do not reflect any sales charges. Source: Thomson Reuters Lipper. The Bloomberg Barclays index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.
³	Prior to August 7, 2009, the fund was operated as a money market fund and did not have an initial sales charge.
⁴	In 2009, the fund changed its fiscal year-end from September 30 to July 31.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	10 years

Class A shares	–2.26%	0.28%	0.84%


*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

The 10-year investment result includes the fund’s results as a money market fund through the date of its conversion (August 7, 2009) to a short-term tax-exempt bond fund, and therefore is not representative of the fund’s results had it operated as a short-term tax-exempt bond fund for the full term of that period. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.

Portfolio quality summary*

Percent of net assets

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. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. 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 (above) 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 the fund’s investment policies. The ratings are not covered by the Report of Independent Registered Public Accounting Firm.

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

The fund generated a total return of 0.40% for the 12 months ended July 31. It outpaced the Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index, a market value-weighted index that includes investment-grade tax-exempt bonds (rated BBB/Baa and above) with maturities of one to 10 years, which rose 0.21%. The fund also bested the 0.39% return of the Lipper Short-Intermediate Municipal Debt Funds Average, a peer group measure.

The fund paid monthly dividends totaling 31 cents a share for the fiscal year. Those individuals who reinvested dividends received a federally tax-exempt income return of 2.00%. This is equivalent to a taxable income return of 3.38% for investors in the 40.8%¹maximum federal tax bracket.

The fund’s managers positioned the portfolio fairly conservatively, seeking to maintain a relatively short duration. This approach helped the fund outpace the broader market, particularly during the first half of the period when the yield curve flattened somewhat. As of July 31, 2018, 55.1% of the portfolio was invested in bonds rated AAA/Aaa or AA/Aa.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 1.96% tax-exempt distribution rate³ as of July 31, 2018.

If your taxable income is …						… then your federal			The fund’s tax-exempt distribution rate of 1.96% is
Single			Joint			tax rate is …			equivalent to a taxable rate of …

$	0 –	9,525	$	0 –	19,050		10.0	%		2.18	%
	9,526 –	38,700		19,051 –	77,400		12.0			2.23
	38,701 –	82,500		77,401 –	165,000		22.0			2.51
	82,501 –	157,500		165,001 –	250,000		24.0			2.58
	–			250,001 –	315,000		27.8	¹		2.71
	157,501 –	200,000		–			32.0			2.88
	–			315,001 –	400,000		35.8	¹		3.05
	200,001 –	500,000		400,001 –	600,000		38.8	¹		3.20
	Over 500,000			Over 600,000			40.8	¹		3.31


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 40.8% marginal tax rate on their investment income.
²	Based on 2018 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 2.50% on the $10,000 investment.* Thus, the net amount invested was $9,750. Results are for past periods and are not predictive of results for 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 and month-end results, visit americanfunds.com.

6	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

*	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
^†	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	10 years

Class A shares	–2.09%	1.18%	2.68%


*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

The fund produced a 1.60% total return for the fiscal year, significantly beating the 0.99% return of the Bloomberg Barclays Municipal Bond Index, a market value-weighted index designed to represent the long-term investment-grade (bonds rated BBB/Baa and above) tax-exempt bond market. It also surpassed the 1.48% total return of the Lipper General & Insured Municipal Debt Funds Average, a peer group measure.

For the fiscal year, the fund paid monthly dividends totaling about 38 cents a share, amounting to a federally tax-exempt income return of 2.93% for investors who reinvested dividends. This is equivalent to a taxable income return of 4.95% for investors in the 40.8%¹maximum federal tax bracket. The fund does not invest in bonds subject to the Alternative Minimum Tax (AMT).

The fund’s managers took a relatively conservative approach to the market, seeking to carefully manage interest rate exposure. This approach helped the fund outpace the broader market, particularly during the first half of the period when the yield curve flattened somewhat. At the close of the period approximately 85% of the portfolio consisted of revenue bonds. Among the largest concentrations were holdings backing health care and transportation initiatives.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.82% tax-exempt distribution rate³as of July 31, 2018.

If your taxable income is …						… then your federal			The fund’s tax-exempt distribution rate of 2.82% is
Single			Joint			tax rate is …			equivalent to a taxable rate of …

$	0 –	9,525	$	0 –	19,050		10.0	%		3.13	%
	9,526 –	38,700		19,051 –	77,400		12.0			3.20
	38,701 –	82,500		77,401 –	165,000		22.0			3.62
	82,501 –	157,500		165,001 –	250,000		24.0			3.71
	–			250,001 –	315,000		27.8	¹		3.91
	157,501 –	200,000		–			32.0			4.15
	–			315,001 –	400,000		35.8	¹		4.39
	200,001 –	500,000		400,001 –	600,000		38.8	¹		4.61
	Over 500,000			Over 600,000			40.8	¹		4.76


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 40.8% marginal tax rate on their investment income.
²	Based on 2018 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

Fund results shown on the following page are for Class A shares and, unless otherwise indicated, reflect deduction of the maximum sales charge of 3.75% on the $10,000 investment.* Thus, the net amount invested was $9,625. Results are for past periods and are not predictive of results for 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 and month-end results, visit americanfunds.com.

8	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

*	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
^†	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	10 years

Class A shares	–2.24%	3.06%	3.92%


*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

The fund produced a total return of 4.05% for the fiscal year, exceeding the 0.99% return of the Bloomberg Barclays Municipal Bond Index, a measure of the investment-grade municipal market. The fund, which seeks to provide a high level of tax-exempt income by investing in both high-yield and investment-grade municipal bonds, also bettered the 3.97% return of the Lipper High Yield Municipal Debt Funds Average (a peer group measure). However, the fund couldn’t match the 6.82% gain of the Bloomberg Barclays High Yield Municipal Bond Index (a market value-weighted index composed of municipal bonds rated below BBB/Baa).

For the 12 months, the fund paid monthly dividends totaling about 58 cents a share, amounting to a federally tax-exempt income return of 3.74% for investors who reinvested dividends. This is equivalent to a taxable income return of 6.32% for investors in the 40.8%¹maximum federal tax bracket. A portion of the fund’s return also may be exempt from some state and local taxes.

Over a period that saw high-yield municipal bonds outpace the broader tax-exempt market, the fund’s return was solid. However, a relatively light concentration in Puerto Rico- and Virgin Islands-backed issues dampened the fund’s total return on a relative basis.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper source: Thomson Reuters Lipper. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please view the Quarterly Statistical Update, available at americanfunds.com.

Tax-exempt yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 3.53% tax-exempt distribution rate³as of July 31, 2018.

If your taxable income is …						… then your federal			The fund’s tax-exempt distribution rate of 3.53% is
Single			Joint			tax rate is …			equivalent to a taxable rate of …

$	0 –	9,525	$	0 –	19,050		10.0	%		3.92	%
	9,526 –	38,700		19,051 –	77,400		12.0			4.01
	38,701 –	82,500		77,401 –	165,000		22.0			4.53
	82,501 –	157,500		165,001 –	250,000		24.0			4.64
	–			250,001 –	315,000		27.8	¹		4.89
	157,501 –	200,000		–			32.0			5.19
	–			315,001 –	400,000		35.8	¹		5.50
	200,001 –	500,000		400,001 –	600,000		38.8	¹		5.77
	Over 500,000			Over 600,000			40.8	¹		5.96


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 40.8% marginal tax rate on their investment income.
²	Based on 2018 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phaseout of itemized deductions that are applicable to certain taxable income levels.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

10	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

*	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
^†	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	10 years

Class A shares	0.17%	5.06%	5.17%


*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

The fund posted a 1.77% total return for the fiscal year. It finished ahead of the Bloomberg Barclays California Municipal Index, a market value-weighted index that includes only investment-grade tax-exempt bonds (rated BBB/Baa and above) of issuers within the state of California, which climbed 1.15%. The fund also outpaced the 1.55% total return of the Lipper California Municipal Debt Funds Average, a peer group measure.

For the period, the fund paid monthly dividends totaling 51 cents a share. Those investors who reinvested dividends received an income return of 2.92%. This is equivalent to a taxable income return of 6.36% for investors in the 54.10%¹effective combined federal and California tax bracket.

The state’s finances remain quite healthy. Higher tax rates have driven demand for sources of tax-exempt income, as credit spreads have tightened across the spectrum. Given what the managers believe is limited potential reward for additional risk, they are maintaining a conservative approach, concentrating on bonds of relatively higher quality and shorter duration.

Tax-exempt yields vs. taxable yields

Find your estimated 2018 taxable income below to determine your combined federal and California tax rate,²then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.81% tax-exempt distribution rate³as of July 31, 2018.

If your taxable income is …						… then your combined federal and California			The fund’s tax-exempt distribution rate of 2.81% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of …

$	0 –	8,223	$	0 –	16,446		11.00	%		3.16	%
	8,224 –	9,525		16,447 –	19,050		12.00			3.19
	9,526 –	19,495		19,051 –	38,990		14.00			3.27
	19,496 –	30,769		38,991 –	61,538		16.00			3.35
	30,770 –	38,700		61,539 –	77,400		18.00			3.43
	38,701 –	42,711		77,401 –	85,422		28.00			3.90
	42,712 –	53,980		85,423 –	107,960		30.00			4.01
	53,981 –	82,500		107,961 –	165,000		31.30			4.09
	82,501 –	157,500		165,001 –	250,000		33.30			4.21
	–			250,001 –	315,000		37.10	¹		4.47
	157,501 –	200,000		–			41.30			4.79
	–			315,001 –	400,000		45.10	¹		5.12
	200,001 –	275,738		400,001 –	551,476		48.10	¹		5.41
	275,739 –	330,884		551,477 –	600,000		49.10	¹		5.52
	330,885 –	500,000		–			50.10	¹		5.63
	–			600,001 –	661,768		51.10	¹		5.75
	500,001 –	551,473		661,769 –	1,000,000		52.10	¹		5.87
	551,474 –	1,000,000		1,000,001 –	1,102,946		53.10	¹		5.99
	Over 1,000,000			Over 1,102,946			54.10	¹		6.12


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 54.10% marginal tax rate on their investment income.
²	Based on 2018 federal and 2017 California tax rates. (State rates from 1.0% to 13.3% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates paid by California residents may be lower than those shown due to the availability of income tax deductions.
³	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gains distributions, if any, are added back at the maximum offering price to determine the rate.

12	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

*	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
^†	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	10 years

Class A shares	–2.06%	3.34%	4.41%


*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

The fund recorded a total return of 0.75% for the fiscal year, outpacing the 0.49% gain of the Bloomberg Barclays New York Municipal Index, a market value-weighted index that includes only investment-grade tax-exempt bonds (rated BBB/Baa and above) of issuers within the state of New York. By way of comparison, the Lipper New York Municipal Debt Funds Average, a peer group measure, advanced 0.94%.

The fund paid monthly dividends totaling 27 cents a share for the 12 months. This represents an income return of 2.53% for those who reinvested dividends. For investors in the 49.62%¹combined effective federal and New York state bracket, this is equivalent to a taxable income return of 5.02%.

The fund received positive contributions from revenue bonds supporting a wide range of initiatives. The portfolio’s two highest concentrations at the close of the period were in revenue bonds supporting higher education and hospital facilities.

Tax-exempt yields vs. taxable yields

Find your estimated 2018 taxable income below to determine your combined federal and New York state tax rate,^2,3then look in the far right column to see what you would have had to earn from a taxable investment to equal the fund’s 2.45% tax-exempt distribution rate⁴as of July 31, 2018.

If your taxable income is …						… then your combined federal and New York			The fund’s tax-exempt distribution rate of 2.45% is
Single			Joint			state tax rate is …			equivalent to a taxable rate of …

$	0 –	8,500	$	0 –	17,150		14.00	%		2.85	%
	8,501 –	9,525		17,151 –	19,050		14.50			2.87
	9,526 –	11,700		19,051 –	23,600		16.50			2.93
	11,701 –	13,900		23,601 –	27,900		17.25			2.96
	13,901 –	21,400		27,901 –	43,000		17.90			2.98
	21,401 –	38,700		43,001 –	77,400		18.45			3.00
	38,701 –	80,650		77,401 –	161,550		28.45			3.42
	80,651 –	82,500		161,551 –	165,000		28.65			3.43
	82,501 –	157,500		165,001 –	250,000		30.65			3.53
	–			250,001 –	315,000		34.45	¹		3.74
	157,501 –	200,000		–			38.65			3.99
	–			315,001 –	323,200		42.45	¹		4.26
	–			323,201 –	400,000		42.65	¹		4.27
	200,001 –	215,400		–			45.45	¹		4.49
	215,401 –	500,000		400,001 –	600,000		45.65	¹		4.51
	500,001 –	1,077,550		600,001 –	2,155,350		47.65	¹		4.68
	Over 1,077,550			Over 2,155,350			49.62	¹		4.86


¹	For the year 2018, there will be an Unearned Income Medicare Contribution Tax of 3.8% that applies to net investment income for taxpayers whose modified adjusted gross income exceeds $200,000 (for single filers) and $250,000 (for married filing jointly). Thus taxpayers in the highest tax bracket will face a combined 49.62% marginal tax rate on their investment income.
²	Income generated by the fund’s investments is also generally exempt from New York City taxes, offering additional tax advantages to New York City residents.
³	Based on 2018 federal and 2017 New York state tax rates. (State rates from 4.00% to 8.82% are individually calculated for each bracket. The federal brackets are expanded to include additional state brackets.) The effective combined tax rates paid by New York residents may be lower than those shown due to the availability of income tax deductions.
⁴	The distribution rate is based on dividends paid over the last 12 months divided by the maximum offering price as of July 31, 2018. Capital gain distributions, if any, are added back at the maximum offering price to determine the rate.

14	American Funds Tax-Exempt Funds

How a $10,000 investment has grown

(for the period November 1, 2010, to July 31, 2018, with dividends reinvested)

*	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
^†	The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Bloomberg Barclays source: Bloomberg Index Services Ltd.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment

For periods ended July 31, 2018*

	1 year	5 years	Lifetime

Class A shares	–3.02%	2.72%	3.08%


*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. The investment adviser is currently reimbursing a portion of other expenses. This reimbursement will be in effect through at least October 1, 2018, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Visit americanfunds.com for more information.

Portfolio quality summary*

Percent of net assets

American Funds Tax-Exempt Funds

Results at a glance

For periods ended July 31, 2018, with distributions reinvested

	Cumulative total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime^*

American Funds Short-Term Tax-Exempt Bond Fund (Class A shares)		0.24	%		0.78	%		—			1.20	%
Bloomberg Barclays Municipal Short 1–5 Years Index		0.48			1.23			—			1.67
Lipper Short Municipal Debt Funds Average		0.61			0.74			—			1.12

Limited Term Tax-Exempt Bond Fund of America (Class A shares)		0.40			1.69			2.94	%		3.81
Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index		0.21			2.08			3.11			4.06
Lipper Short-Intermediate Municipal Debt Funds Average		0.39			1.50			2.35			3.37

The Tax-Exempt Bond Fund of America (Class A shares)		1.60			3.84			4.33			6.36
Bloomberg Barclays Municipal Bond Index		0.99			3.76			4.41			—	^†
Lipper General & Insured Municipal Debt Funds Average		1.48			3.90			4.18			6.15

American High-Income Municipal Bond Fund (Class A shares)		4.05			5.86			5.57			5.52
Bloomberg Barclays Municipal Bond Index		0.99			3.76			4.41			5.24
Bloomberg Barclays High Yield Municipal Bond Index		6.82			6.11			6.09			—	^†
Lipper High Yield Municipal Debt Funds Average		3.97			5.70			4.99			5.04

The Tax-Exempt Fund of California (Class A shares)		1.77			4.13			4.80			5.44
Bloomberg Barclays California Municipal Index		1.15			4.15			4.74			—	^†
Lipper California Municipal Debt Funds Average		1.55			4.48			4.58			5.45

American Funds Tax-Exempt Fund of New York (Class A shares)		0.75			3.51			—			3.59
Bloomberg Barclays New York Municipal Index		0.49			3.71			—			3.45
Lipper New York Municipal Debt Funds Average		0.94			3.69			—			3.20


^*	Since 8/7/09 (American Funds Short-Term Tax-Exempt Bond Fund), 10/6/93 (Limited Term Tax-Exempt Bond Fund of America), 10/3/79 (The Tax-Exempt Bond Fund of America), 9/26/94 (American High-Income Municipal Bond Fund), 10/28/86 (The Tax-Exempt Fund of California) and 11/1/10 (American Funds Tax-Exempt Fund of New York).
^†	This index did not exist at the fund’s inception.

16	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 89.79%	Principal amount (000)		Value (000)
Alabama 2.21%
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021)	$	7,500	$	7,826
Other securities				13,769
				21,595

California 6.14%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2006-C-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹		6,600		6,720
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2007-E-3, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2047 (put 2019)¹		3,000		3,010
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2008-A-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹		1,250		1,273
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-G, (SIFMA Municipal Swap Index + 0.60%) 1.54% 2034 (put 2020)¹		2,000		2,011
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-D, (3-month USD-LIBOR x 0.70 + 0.55%) 2.186% 2045 (put 2021)¹		500		504
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (Pacific Gas and Electric Company), Series 2008-F, 1.75% 2026 (put 2022)		6,070		5,766
Other securities				40,776
				60,060

Florida 3.10%
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Senior Secured Bonds, Series 2012-A-1, 5.00% 2019		7,450		7,660
JEA, Electric System Rev. Bonds, Series 2012-B, 5.00% 2026 (preref. 2021)		4,650		5,093
Other securities				17,537
				30,290

Georgia 1.63%
County of Floyd, Dev. Auth., Pollution Control Rev. Bonds (Georgia Power Company Plant Hammond Project), Series 2010, 2.35% 2022 (put 2020)		4,000		4,023
Other securities				11,895
				15,918

Illinois 10.27%
Build Illinois Bonds, Sales Tax Rev. Bonds, Series 2013, 5.00% 2020		6,300		6,617
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 1998-B, 1.65% 2025 (put 2019)		10,390		10,390
Housing Dev. Auth., Multi Family Housing Rev. Notes (Marshall Field Garden Apartment Homes), Series 2015, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2050 (put 2025)¹		5,525		5,474
Regional Transportation Auth., G.O. Rev. Ref. Bonds, Series 2017-A, 5.00% 2023		5,000		5,602
Other securities				72,367
				100,450

Indiana 1.88%
Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2001, AMT, 1.75% 2031 (put 2018)		500		500
Hobart Building Corp. (Lake County), First Mortgage Bonds, Series 2006, National insured, 6.50% 2029 (preref. 2020)		6,000		6,421
Other securities				11,508
				18,429

Kansas 0.92%
Dept. of Transportation, Highway Rev. Bonds, Series 2004-C-3, (1-month USD-LIBOR x 0.70 + 0.40%) 1.865% 2023¹		5,000		5,014
Other securities				4,012
				9,026

Kentucky 0.72%
Property and Buildings Commission, Rev. Ref. Bonds (Project No. 112), Series 2016-B, 5.00% 2022		4,500		4,991
Other securities				2,020
				7,011


American Funds Tax-Exempt Funds	17

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Maryland 1.33%
University System, Auxiliary Fac. and Tuition Rev. Ref. Bonds, Series 2017-B, 5.00% 2021	$	4,500	$	4,878
Other securities				8,130
				13,008

Massachusetts 2.91%
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 167, 4.00% 2043		790		819
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 169, 4.00% 2044		505		523
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 172, 4.00% 2045		1,000		1,041
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 181, 4.00% 2044		785		819
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 183, 3.50% 2046		805		828
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 160, AMT, 3.75% 2034		300		306
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 162, 2.75% 2041		235		237
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 165, 2.65% 2041		810		815
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 171, 4.00% 2044		570		592
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 177, AMT, 4.00% 2039		3,125		3,252
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 188, AMT, 4.00% 2043		815		856
Other securities				18,388
				28,476

Minnesota 1.52%
Housing Fin. Agcy., Homeownership Fin. Bonds (Mortgage-Backed Securities Program), Series 2011-G, 4.25% 2035		280		287
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2012-D, 4.00% 2040		435		446
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031		510		516
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-A, 4.00% 2038		805		838
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-C, AMT, 4.00% 2045		6,420		6,697
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-A, AMT, 4.00% 2041		655		680
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-E, AMT, 3.50% 2046		695		714
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2016-E, 4.00% 2047		210		219
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2017-E, 4.00% 2048		975		1,028
Other securities				3,481
				14,906

Nebraska 1.43%
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019)		6,700		6,981
Other securities				7,043
				14,024

Nevada 1.53%
County of Clark, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020)		5,500		5,470
Other securities				9,439
				14,909

New Jersey 2.93%
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2014-PP, 5.00% 2019		4,000		4,109
Housing and Mortgage Fin. Agcy., Single Family Housing Rev. Bonds, Series 2018-A, 4.50% 2048		5,000		5,367
Other securities				19,186
				28,662

New Mexico 0.92%
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2005-A, 1.875% 2029 (put 2020)		2,000		1,989
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2005-B, 1.875% 2029 (put 2020)		2,250		2,238
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2011, 1.875% 2029 (put 2020)		2,000		1,989
Other securities				2,730
				8,946


18	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Principal amount (000)		Value (000)
New York 8.34%
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2017-B, 5.00% 2023	$	5,000	$	5,647
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2039 (put 2020)¹		6,250		6,258
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-D-2A, Assured Guaranty Municipal insured, (1-month USD-LIBOR x 0.69 + 0.68%) 2.123% 2032 (put 2021)¹		4,000		4,033
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-C-2, 1.70% 2021		5,250		5,206
Thruway Auth., General Rev. Junior Indebtedness Obligations, Series 2013-A, 5.00% 2019		4,700		4,823
Other securities				55,596
				81,563

North Dakota 0.99%
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2016-B, AMT, 4.00% 2047		4,005		4,183
Other securities				5,498
				9,681

Ohio 1.79%
Water Dev. Auth., Solid Waste Disposal Rev. Bonds (Waste Management Inc. Project), Series 2002, AMT, 1.70% 2022 (put 2018)		2,500		2,500
Other securities				15,021
				17,521

Pennsylvania 3.23%
Econ. Dev. Fncg. Auth., UPMC Rev. Bonds, Series 2017-A, 4.00% 2018		4,780		4,816
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-118-A, AMT, 3.50% 2040		5,490		5,621
Other securities				21,152
				31,589

Texas 10.40%
Clear Creek Independent School Dist., Unlimited Tax School Building Bonds, Series 2013-B, 3.00% 2032 (put 2019)		5,000		5,066
Cypress-Fairbanks Independent School Dist., Unlimited Tax School Building Bonds, Series 2017-A-2, 2.50% 2036 (put 2019)		4,000		4,033
City of Houston, Combined Utility System Rev. Ref. Bonds, Series 2018-C, (1-month USD-LIBOR x 0.70 + 0.36%) 1.811% 2034 (put 2021)¹		5,650		5,655
City of Houston, Public Improvement Rev. Ref. Bonds, Series 2017-A, 5.00% 2020		2,850		2,996
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-A, (SIFMA Municipal Swap Index + 0.80%) 1.74% 2050 (put 2019)¹		4,095		4,095
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)		2,380		2,380
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2017-A, 5.00% 2019		4,500		4,567
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2009-A, 5.25% 2024 (preref. 2019)		1,100		1,121
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2012-C, 2.00% 2027 (put 2018)		1,625		1,627
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-A, 2.25% 2033 (put 2019)		9,000		9,065
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-B, 2.00% 2033 (put 2021)		3,040		3,023
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, (SIFMA Municipal Swap Index + 0.38%) 1.32% 2041 (put 2018)¹		6,500		6,501
Other securities				51,626
				101,755

Washington 3.07%
Econ. Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2008, 2.125% 2020²		5,000		5,002
Various Purpose G.O. Rev. Ref. Bonds, Series 2018-R-C, 5.00% 2021		5,000		5,472
Other securities				19,561
				30,035


American Funds Tax-Exempt Funds	19

American Funds Short-Term Tax-Exempt Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Wisconsin 4.26%
G.O. Bonds, Series 2013-A, 5.00% 2025 (preref. 2022)	$	5,000	$	5,554
G.O. Bonds, Series 2015-A, 5.00% 2031 (preref. 2023)		5,000		5,686
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-1, 1.375% 2038 (put 2019)		2,150		2,137
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-2, 4.00% 2043 (put 2019)		6,000		6,109
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020)		4,500		4,753
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2016-A, AMT, 3.50% 2046		5,415		5,563
Public Fin. Auth., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2016-A-4, AMT, 2.00% 2033 (put 2021)		1,500		1,473
Other securities				10,426
				41,701

Other states & U.S. territories 18.27%
Other securities				178,698

Total bonds, notes & other debt instruments (cost: $882,948,000)				878,253

Short-term securities 10.38%
State of Arizona, City of Phoenix, Industrial Dev. Auth., Health Care Facs. Rev. Bonds (Mayo Clinic), Series 2014-A, 1.38% 2052¹		7,000		7,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009, 1.64% 8/2/2018		5,000		5,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.13% 8/9/2018		2,000		2,000
State of Michigan, Strategic Fund, Demand Limited Obligation Rev. Bonds (Air Products and Chemicals, Inc. Project), Series 2007, 1.45% 2042¹		18,980		18,980
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 2000-B, 1.49% 2040¹		5,000		5,000
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2017-C-2A, 4.00% 5/15/2019		7,300		7,445
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2010-G-5, 1.05% 2034¹		1,500		1,500
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 1.50% 2045¹		1,000		1,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 1.50% 2045¹		3,500		3,500
State of New York, New York City Transitional Fin. Auth., Recovery Bonds, Fiscal 2003, Series 2002-1-C, 1.50% 2022¹		2,880		2,880
State of Pennsylvania, Econ. Dev. Fncg. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2013, AMT, 1.80% 2045 (put 2018)^1,3		1,200		1,200
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, Series 2018, 4.00% 6/28/2019		4,000		4,089
State of Texas, Tax and Rev. Anticipation Notes, Series 2017, 4.00% 8/30/2018		12,000		12,026
State of Washington, Central Puget Sound Regional Transit Auth., Sales Tax Improvement Green Bonds, Series 2015-S-2B, (SIFMA Municipal Swap Index + 0.45%) 1.39% 2045 (put 2023)¹		6,150		6,155
Other securities				23,775

Total short-term securities (cost: $101,533,000)				101,550
Total investment securities 100.17% (cost: $984,481,000)				979,803
Other assets less liabilities (0.17)%				(1,616	)

Net assets 100.00%			$	978,187

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

20	American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Futures contracts

Number of

Notional
amount

⁴

Value at
7/31/2018

⁵

Unrealized
depreciation
at 7/31/2018

Contracts

Type

contracts

Expiration

(000)

2 Year U.S. Treasury Note Futures

Long

280

October 2018

$56,000

$59,185

$(101

)


¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $5,002,000, which represented .51% of the net assets of the fund.
³	For short-term securities, the mandatory put date is considered to be the maturity date.
⁴	Notional amount is calculated based on the number of contracts and notional contract size.
⁵	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
LIBOR = London Interbank Offered Rate
LOC = Letter of Credit
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
SIFMA = Securities Industry and Financial Markets Association
USD/$ = U.S. dollars

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 92.26%	Principal amount (000)		Value (000)
Alabama 1.31%
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021)	$	14,500	$	15,131
Other securities				36,722
				51,853

California 7.79%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2006-C-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹		20,500		20,873
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2007-C-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2047 (put 2023)¹		3,500		3,564
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2007-E-3, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2047 (put 2019)¹		1,000		1,003
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2008-B-1, (SIFMA Municipal Swap Index + 1.10%) 2.04% 2045 (put 2024)¹		2,500		2,572
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-G, (SIFMA Municipal Swap Index + 0.60%) 1.54% 2034 (put 2020)¹		2,500		2,514
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-H, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2034 (put 2021)¹		10,480		10,602
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-D, (3-month USD-LIBOR x 0.70 + 0.55%) 2.186% 2045 (put 2021)¹		3,000		3,025
Northern California Gas Auth. No. 1, Gas Project Rev. Bonds, Series 2007-B, (3-month USD-LIBOR + 0.67%) 2.286% 2027¹		11,870		11,634
Other securities				252,966
				308,753

Florida 4.91%
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Secured Bonds, Series 2012-A-1, 5.00% 2022		10,200		11,307
Housing Fin. Corp., Homeowner Mortgage Rev. Bonds, Series 2017-1, 4.00% 2048		11,665		12,320
County of Miami-Dade, Aviation Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2021		11,600		12,661
Other securities				158,453
				194,741

Georgia 2.15%
Main Street Natural Gas, Inc., Gas Supply Rev. Bonds, Series 2018-A, 4.00% 2048 (put 2023)		15,000		15,993
Municipal Electric Auth., Project One Bonds, Series 2011-A, 5.00% 2021		11,490		12,281
Public Gas Partners, Inc., Gas Project Rev. Ref. Bonds (Gas Supply Pool No. 1), Series A, 5.00% 2018		10,930		10,994
Other securities				45,847
				85,115

Illinois 12.95%
Build Illinois Bonds, Sales Tax Rev. Ref. Bonds, Series 2010, 5.00% 2019		2,250		2,309
Build Illinois Bonds, Sales Tax Rev. Ref. Bonds, Series 2016-C, 4.00% 2026		11,805		12,704
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2011-B, 5.00% 2019		2,785		2,826
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2012-B, AMT, 5.00% 2024		2,000		2,172
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2013-A, AMT, 5.00% 2022		3,055		3,337
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2017-D, 5.00% 2026		4,000		4,661
City of Chicago, O’Hare International Airport, General Airport Rev. Bonds, Series 2017-D, 5.25% 2029		1,500		1,761
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2012-A, AMT, 5.00% 2025		6,170		6,684
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2021		10,000		10,699
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2023		5,000		5,563
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 4.00% 2020		8,000		8,241
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 5.00% 2019		2,000		2,028

22	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2013-B, AMT, 5.00% 2022	$	3,000	$	3,277
City of Chicago, Water Rev. Bonds, Series 2000, 5.00% 2022		10,500		11,627
Fin. Auth., Rev. Bonds (Clean Water Initiative Revolving Fund), Series 2016, 5.00% 2028		10,590		12,286
G.O. Bonds, Series 2014, 5.00% 2024		5,000		5,365
G.O. Bonds, Series 2016, 5.00% 2025		5,000		5,396
G.O. Bonds, Series 2017-B, 5.00% 2019		10,000		10,324
G.O. Bonds, Series 2017-D, BMA insured, 5.00% 2020		9,000		9,380
G.O. Bonds, Series 2017-D, BMA insured, 5.00% 2024		5,000		5,374
G.O. Rev. Ref. Bonds, Series 2012, 5.00% 2019		5,000		5,131
G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2026		7,500		8,082
City of Granite, Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2002-A, AMT, 2.25% 2027 (put 2019)		20,000		20,004
Housing Dev. Auth., Multi Family Housing Rev. Notes (Marshall Field Garden Apartment Homes), Series 2015, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2050 (put 2025)¹		11,625		11,518
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.50% 2023 (preref. 2021)		12,925		14,235
Regional Transportation Auth., G.O. Rev. Ref. Bonds, Series 2017-A, 5.00% 2027		10,000		11,613
Regional Transportation Auth., G.O. Rev. Ref. Bonds, Series 2017-A, 5.00% 2028		10,000		11,588
Other securities				305,457
				513,642

Massachusetts 2.77%
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 190, 4.00% 2048		10,000		10,560
Other securities				99,421
				109,981

Michigan 3.80%
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2016-B, 3.50% 2047		18,070		18,601
County of Wayne, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, 5.00% 2020		10,000		10,696
Other securities				121,347
				150,644

Nebraska 1.07%
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019)		11,850		12,346
Other securities				29,943
				42,289

Nevada 2.28%
County of Clark, Highway Rev. Ref. Bonds (Motor Vehicle Fuel Tax), Series 2011, 5.00% 2020		12,320		13,082
County of Clark, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020)		18,150		18,051
Other securities				59,116
				90,249

New Jersey 3.34%
Housing and Mortgage Fin. Agcy., Single Family Housing Rev. Bonds, Series 2018-A, 4.50% 2048		10,000		10,734
Other securities				121,626
				132,360

New York 7.30%
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2003-B, FGIC-National insured, 5.25% 2020		5,500		5,940
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2008-C, 5.50% 2018		1,880		1,903
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2020		3,250		3,492
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2024		5,000		5,783
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-1, 5.00% 2027		3,150		3,609
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2039 (put 2020)¹		12,250		12,265

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2012-D, 5.00% 2020	$	7,000	$	7,521
New York City G.O. Bonds, Series 2012-I, 5.00% 2020		5,000		5,331
New York City G.O. Bonds, Series 2014-A, 5.00% 2025		3,000		3,453
New York City G.O. Bonds, Series 2014-G, 5.00% 2023		1,500		1,708
New York City G.O. Bonds, Series 2015-C, 5.00% 2028		1,000		1,152
New York City G.O. Bonds, Series 2017-A, 5.00% 2026		5,000		5,921
New York City G.O. Bonds, Series 2017-C, 5.00% 2026		3,500		4,145
New York City G.O. Bonds, Series 2017-C, 5.00% 2027		5,000		5,922
New York City G.O. Bonds, Series 2017-C, 5.00% 2028		4,300		5,068
Transportation Dev. Corp., Special Facs. Rev. Bonds (Delta Air Lines, Inc. LaGuardia Airport Terminals C & D Redev. Project), Series 2018, AMT 5.00% 2025		10,000		11,264
Other securities				205,071
				289,548

Ohio 2.16%
County of Allen, Hospital Facs. Rev. Bonds (Mercy Health), Series 2017-B, 5.00% 2047 (put 2022)		9,425		10,422
Other securities				75,261
				85,683

South Dakota 0.36%
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2016-D, 3.50% 2046		10,150		10,475
Other securities				3,944
				14,419

Texas 9.32%
County of Harris, Cultural Education Facs. Fin. Corp., Medical Facs. Rev. Ref. Bonds (Baylor College of Medicine), Series 2015, (1-month USD-LIBOR x 0.70 + 0.80%) 2.892% 2045 (put 2020)¹		13,000		13,001
County of Harris, Toll Road Rev. Bonds, Series 2012-B, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2021 (put 2018)¹		13,500		13,503
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2017-A, 5.00% 2019		13,500		13,700
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-A, 2.25% 2033 (put 2019)		16,000		16,115
Other securities				313,060
				369,379

Virginia 0.48%
County of Wise, Industrial Dev. Auth., Solid Waste and Sewage Disposal Rev. Bonds (Virginia Electric and Power Co. Project), Series 2009-A, 2.15% 2040 (put 2020)		11,500		11,511
Other securities				7,430
				18,941

Washington 2.68%
Health Care Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2013-B-1, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2035 (put 2021)¹		15,100		15,144
Other securities				91,022
				106,166

Wisconsin 3.07%
G.O. Bonds, Series 2015-A, 5.00% 2031 (preref. 2023)		12,385		14,083
Health and Educational Facs. Auth., Health Facs. Rev. Bonds (SSM Health Care), Series 2018-B, 5.00% 2038 (put 2023)		11,000		12,108
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020)		10,310		10,890
Transportation Rev. Ref. Bonds, Series 2017-2, 5.00% 2022		10,450		11,662
Other securities				73,120
				121,863

24	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
Other states & U.S. territories 24.52%
Other securities			$	972,749

Total bonds, notes & other debt instruments (cost: $3,646,247,000)				3,658,375

Short-term securities 6.82%
State of Arizona, City of Phoenix, Industrial Dev. Auth., Health Care Facs. Rev. Bonds (Mayo Clinic), Series 2014-A, 1.38% 2052¹	$	12,000		12,000
State of Illinois, Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2009-E-1, JPMorgan Chase LOC, 1.45% 2043¹		14,100		14,100
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 1.48% 2030¹		5,000		5,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 1.48% 2035¹		7,100		7,100
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2017-C-2A, 4.00% 5/15/2019		18,000		18,357
State of New York, New York City G.O. Bonds, Fiscal 2006, Series E, Subseries E-2, 1.49% 2034¹		10,775		10,775
State of New York, New York City G.O. Bonds, Series 2006-L-5, 1.49% 2035¹		20,000		20,000
State of New York, Triborough Bridge and Tunnel Auth., General Rev. Bonds (MTA Bridges and Tunnels), Series 2003-B-1, 1.49% 2033¹		9,905		9,905
State of New York, Triborough Bridge and Tunnel Auth., General Rev. Bonds (MTA Bridges and Tunnels), Series 2005-B-2, 1.42% 2032¹		4,600		4,600
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2017-A, 5.00% 9/28/2018		12,000		12,069
State of Pennsylvania, Econ. Dev. Fncg. Auth., Solid Waste Disposal Rev. Bonds (Republic Services, Inc. Project), Series 2014, AMT, 1.85% 2044 (put 2018)		12,000		12,000
State of Texas, City of Houston, IAM Commercial Paper, Series 2018-E-2, 1.34% 9/4/2018		6,500		6,500
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, Series 2018, 4.00% 6/28/2019		5,000		5,112
State of Texas, Tax and Rev. Anticipation Notes, Series 2017, 4.00% 8/30/2018		28,050		28,112
Other securities				104,879

Total short-term securities (cost: $270,494,000)				270,509
Total investment securities 99.08% (cost: $3,916,741,000)				3,928,884
Other assets less liabilities 0.92%				36,427

Net assets 100.00%			$	3,965,311

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities (with an aggregate value of $23,812,000, which represented .60% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

Futures contracts

Contracts

Type

Number of
contracts

Expiration

Notional
amount
(000)

Value at
7/31/2018
(000)

Unrealized
appreciation
at 7/31/2018
(000)

5 Year U.S. Treasury Note Futures

Long

600

October 2018

60,000

67,875

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Key to abbreviations and symbol

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

SIFMA = Securities Industry and Financial Markets Association

USD/$ = U.S. dollars

See Notes to Financial Statements

26	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 93.84%	Principal amount (000)		Value (000)
Alabama 1.43%
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021)	$	40,000	$	41,740
Other securities				230,909
				272,649

California 7.45%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2008-B-1, (SIFMA Municipal Swap Index + 1.10%) 2.04% 2045 (put 2024)¹		30,850		31,742
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		24,000		27,740
Other securities				1,357,784
				1,417,266

Colorado 2.20%
Health Facs. Auth., Health Facs. Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2012, 5.00% 2042		29,815		31,524
Other securities				387,949
				419,473

Connecticut 1.21%
Health and Educational Facs. Auth., Rev. Bonds (Yale University Issue), Series 2017-C-2, 5.00% 2057 (put 2023)		30,000		33,825
Other securities				196,257
				230,082

District of Columbia 1.67%
Water and Sewer Auth., Public Utility Rev. Green Bonds, Series 2017-A, 5.00% 2052		24,900		28,287
Other securities				290,098
				318,385

Florida 6.49%
Orlando-Orange County Expressway Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2035		27,350		30,386
Tampa-Hillsborough County Expressway Auth., Rev. Ref. Bonds, Series 2017-B, 4.00% 2042		39,670		40,815
Other securities				1,163,292
				1,234,493

Georgia 2.33%
Main Street Natural Gas, Inc., Gas Supply Rev. Bonds, Series 2018-A, 4.00% 2048 (put 2023)		42,500		45,314
Other securities				397,441
				442,755

Illinois 13.23%
City of Chicago, Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2014, Assured Guaranty Municipal insured, 5.25% 2049		27,500		30,490
City of Chicago, Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2017, Assured Guaranty Municipal insured, 5.00% 2051		33,585		35,820
Fin. Auth., Rev. Bonds (Mercy Health Corp.), Series 2016, 5.00% 2046		34,260		37,069
Fin. Auth., Rev. Bonds (The Cable Foundation), Series 2016-A, 5.00% 2045		26,575		28,756
Fin. Auth., Student Housing Rev. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		32,250		34,878
Housing Dev. Auth., Homeowner Mortgage Rev. Bonds, Series 2018-A-1, 4.00% 2048		27,430		28,878
Housing Dev. Auth., Multi Family Housing Rev. Notes (Marshall Field Garden Apartment Homes), Series 2015, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2050 (put 2025)¹		27,800		27,545
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2013-A, 5.00% 2038		34,430		37,704
Other securities				2,256,378
				2,517,518

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Kansas 0.72%
Dept. of Transportation, Highway Rev. Bonds, Series 2004-C-4, (1-month USD-LIBOR x 0.70 + 0.50%) 1.964% 2024¹	$	28,000	$	28,084
University of Kansas Hospital Auth., Health Facs. and Improvement Rev. Bonds (University of Kansas Health System), Series 2017-A, 5.00% 2047		44,740		49,992
Other securities				58,145
				136,221

Kentucky 0.78%
Public Energy Auth., Gas Supply Rev. Bonds, Series 2018-A, 4.00% 2048 (put 2024)		34,400		36,622
Other securities				111,268
				147,890

Louisiana 1.71%
Public Facs. Auth., Rev. and Rev. Ref. Bonds (Ochsner Clinic Foundation Project), Series 2017, 5.00% 2046		25,895		28,583
Other securities				295,910
				324,493

Michigan 3.57%
Hospital Fin. Auth., Hospital Rev. and Rev. Ref. Bonds (Trinity Health Credit Group), Series 2017-A, 4.00% 2036		31,480		32,494
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2016-B, 3.50% 2047		28,410		29,245
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2018-A, 4.00% 2048		36,900		39,026
Other securities				578,288
				679,053

New Jersey 2.08%
Housing and Mortgage Fin. Agcy., Single Family Housing Rev. Bonds, Series 2018-A, 4.50% 2048		40,000		42,935
Other securities				352,753
				395,688

New York 7.10%
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 208, 4.00% 2048		30,900		32,573
New York City G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2030		740		861
New York City G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2037		2,000		2,276
New York City G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2032		1,500		1,739
New York City G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2034		1,000		1,150
New York City G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2037		2,500		2,858
New York City G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2038		1,500		1,710
New York City G.O. Bonds, Fiscal 2017, Series 2016-B-1, 5.00% 2041		1,500		1,709
New York City G.O. Bonds, Fiscal 2018, Series 2017-B-1, 5.00% 2035		2,950		3,409
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2026		1,500		1,776
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2029		4,800		5,711
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2030		8,075		9,562
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2031		3,620		4,267
New York City G.O. Bonds, Series 2013-F-1, 5.00% 2037		3,000		3,323
New York City G.O. Bonds, Series 2013-H, 5.00% 2023		2,475		2,819
New York City G.O. Bonds, Series 2013-J, 5.00% 2023		500		569
New York City G.O. Bonds, Series 2014-A, 5.00% 2024		5,500		6,361
New York City G.O. Bonds, Series 2014-G, 5.00% 2023		2,500		2,847
New York City G.O. Bonds, Series 2014-J, 5.00% 2030		2,000		2,276
New York City G.O. Bonds, Series 2015-A, 5.00% 2026		8,000		9,344
New York City G.O. Bonds, Series 2015-C, 5.00% 2028		1,000		1,152
New York City G.O. Bonds, Series 2015-C, 5.00% 2030		10,000		11,433
New York City G.O. Bonds, Series 2015-C, 5.00% 2032		3,500		3,988
New York City G.O. Bonds, Series 2015-C, 5.00% 2033		1,000		1,136
New York City G.O. Bonds, Series 2015-D, 5.00% 2030		2,560		2,927
New York City G.O. Bonds, Series 2017-A, 5.00% 2026		10,000		11,842
New York City G.O. Bonds, Series 2017-A, 5.00% 2027		1,500		1,791
New York City G.O. Bonds, Series 2017-A, 5.00% 2028		1,000		1,188
New York City G.O. Bonds, Series 2017-C, 5.00% 2026		5,000		5,921
New York City G.O. Bonds, Series 2017-C, 5.00% 2028		2,200		2,593

28	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
New York City G.O. Bonds, Series 2018-E-1, 5.00% 2032	$	2,575	$	3,022
New York City G.O. Bonds, Series 2018-E-1, 5.00% 2037		6,345		7,332
New York City G.O. Bonds, Series 2018-F-1, 5.00% 2037		2,000		2,313
Utility Debt Securitization Auth., Restructuring Bonds, Series 2017, 5.00% 2041		31,500		36,612
Other securities				1,161,440
				1,351,830

North Carolina 0.52%
Housing Fin. Agcy., Home Ownership Rev. Ref. Bonds, Series 39-B, 4.00% 2048		25,950		27,478
Other securities				72,324
				99,802

Ohio 2.38%
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-Backed Bonds, Series 2007-A-2, 6.50% 2047		27,115		27,928
Other securities				424,688
				452,616

Pennsylvania 4.19%
County of Montgomery, Industrial Dev. Auth., Retirement Communities Rev. Bonds (ACTS Retirement-Life Communities, Inc. Obligated Group), Series 2016, 5.00% 2036		26,650		29,462
Other securities				768,729
				798,191

Tennessee 1.22%
Metropolitan Government of Nashville and Davidson County, G.O. Improvement Bonds, Series 2013-A, 5.00% 2029 (preref. 2023)		31,610		35,711
Other securities				197,244
				232,955

Texas 9.87%
City of Austin, Water and Wastewater System Rev. Ref. Bonds, Series 2016, 5.00% 2041		26,405		30,107
City of Austin, Water and Wastewater System Rev. Ref. Bonds, Series 2016, 5.00% 2045		26,860		30,542
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2009-A, 5.00% 2028		1,500		1,500
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2011-A, 5.00% 2021		1,400		1,529
G.O. Bonds, Water Financial Assistance Bonds (Water Infrastructure Fund), Series 2013-B, 5.00% 2026		1,600		1,808
Grand Parkway Transportation Corp., Grand Parkway System Toll Rev. Bonds, Series 2013-B, 5.00% 2053		32,800		35,932
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-A, 5.00% 2044		15,000		16,892
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, (SIFMA Municipal Swap Index + 0.38%) 1.32% 2041 (put 2018)¹		1,500		1,500
Transportation Commission, Highway Improvement G.O. Bonds, Series 2016, 5.00% 2043		10,020		11,331
Water Dev. Board, State Water Implementation Rev. Fund, Rev. Bonds (Master Trust), Series 2017-A, 5.00% 2042		34,675		39,973
Other securities				1,706,458
				1,877,572

United States 0.20%
Freddie Mac, Multi Family Certificates, Class A, Series 2017-M-042, (SIFMA Municipal Swap Index + 0.30%) 1.24% 2033¹		37,430		37,430

Virginia 2.80%
City of Newport News, Industrial Dev. Auth., Health Systems Rev. Ref. Bonds (Custodial Receipts), Series 2015, 5.33% 2045²		41,100		43,305
Other securities				488,592
				531,897

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Washington 2.85%
Various Purpose G.O. Rev. Ref. Bonds, Series 2018-R-D, 5.00% 2035	$	26,605	$	30,819
Health Care Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2013-B-1, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2035 (put 2021)¹		49,750		49,894
Other securities				461,364
				542,077

Wisconsin 1.94%
General Fund Annual Appropriation Rev. Ref. Bonds, Series 2009-A, 6.00% 2036 (preref. 2019)		54,460		56,310
Other securities				313,066
				369,376

Other states & U.S. territories 15.90%
Other securities				3,025,301

Total bonds, notes & other debt instruments (cost: $17,599,519,000)				17,855,013

Short-term securities 6.10%
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009, 1.64% 8/2/2018		30,900		30,900
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009, 1.65% 8/1/2018		13,000		13,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-A, 1.19% 9/4/2018		30,000		30,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-A, 1.27% 10/3/2018		6,000		6,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.13% 8/7/2018		3,000		3,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.13% 8/9/2018		2,500		2,500
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2010-B, 1.10% 8/14/2018		25,000		25,000
State of Minnesota, Health Care Facs. Rev. Bonds, IAM Commercial Paper, 1.28% 8/13/2018		30,000		30,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 1.48% 2030¹		50,000		50,000
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-F, 0.05% 2035¹		5,000		5,000
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2018-A-1, 4.00% 2019		35,000		35,828
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2017-C-2A, 4.00% 5/15/2019³		66,000		67,309
State of New York, New York City G.O. Bonds, Fiscal 2006, Series E, Subseries E-2, 1.49% 2034¹		14,505		14,505
State of New York, New York City G.O. Bonds, Series 2006-H-1, 1.50% 2036¹		5,235		5,235
State of New York, New York City G.O. Bonds, Series 2006-L-5, 1.49% 2035¹		36,000		36,000
State of New York, New York City G.O. Bonds, Series 2008-J-3, 1.56% 2023¹		55,900		55,900
State of New York, New York City G.O. Bonds, Series 2008-J-5, 1.55% 2028¹		16,035		16,035
State of New York, New York City G.O. Bonds, Series 2008-L-3, 1.55% 2036¹		14,120		14,120
State of New York, New York City G.O. Bonds, Series 2013-F-3, 1.55% 2042¹		7,000		7,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2016, Series 2015-A-4, 1.49% 2041¹		1,000		1,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2010-G-5, 1.05% 2034¹		3,000		3,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2003, Series 2002-A-2, 1.56% 2029¹		30,100		30,100
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 1.50% 2045¹		1,500		1,500
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 1.50% 2045¹		4,470		4,470
State of New York, New York City Transitional Fin. Auth., Recovery Bonds, Fiscal 2003, Series 2002-1-C, 1.50% 2022¹		430		430

30	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

	Principal amount (000)		Value (000)
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2003-C-5, 1.53% 2031¹	$	13,640	$	13,640
State of Ohio, County of Franklin, Rev. Bonds (CHE Trinity Health Credit Group), Series 2013-OH, 1.80% 2046 (put 2018)³		34,000		34,000
State of Texas, Lower Colorado River Auth., Rev. Bonds, 1.08% 8/22/2018		33,489		33,489
State of Texas, Lower Colorado River Auth., Rev. Bonds, 1.32% 8/20/2018		8,000		8,000
State of Texas, Tax and Rev. Anticipation Notes, Series 2017, 4.00% 8/30/2018		205,005		205,453
Other securities				379,255

Total short-term securities (cost: $1,161,598,000)				1,161,669
Total investment securities 99.94% (cost: $18,761,117,000)				19,016,682
Other assets less liabilities 0.06%				11,380

Net assets 100.00%			$	19,028,062

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes a security which was valued under fair value procedures adopted by authority of the board of trustees. The total value of the security which was valued under fair value procedures was $6,551,000, which represented .03% of the net assets of the fund.

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)		⁴	Value at 7/31/2018 (000)		⁵	Unrealized (depreciation) appreciation at 7/31/2018 (000)
5 Year U.S. Treasury Note Futures	Long	7,000	October 2018		$ 700,000			$ 791,875			$	(73	)
30 Year Ultra U.S. Treasury Bond Futures	Short	1,300	September 2018		(130,000	)		(203,978	)			1,942
											$	1,869

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $322,378,000, which represented 1.69% of the net assets of the fund.
³	For short-term securities, the mandatory put date is considered to be the maturity date.
⁴	Notional amount is calculated based on the number of contracts and notional contract size.
⁵	Value is calculated based on the notional amount and current market price.

American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Key to abbreviations and symbol

Agcy. = Agency

Auth. = Authority

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

SIFMA = Securities Industry and Financial Markets Association

USD/$ = U.S. dollars

See Notes to Financial Statements

32	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 93.32%	Principal amount (000)		Value (000)
Arizona 2.25%
City of Phoenix, Industrial Dev. Auth., Education Fac. Rev. Bonds (Legacy Traditional Schools East Mesa and Cadence Campuses), Series 2017-A, 4.00% 2022¹	$	15,000	$	14,712
Other securities				131,124
				145,836

Colorado 4.88%
City and County of Denver, Dept. of Aviation, Special Facs. Airport Rev. Ref. Bonds (United Air Lines Project), Series 2017, AMT, 5.00% 2032		8,905		9,557
Health Facs. Auth., Rev. Ref. Bonds (Frasier Meadows), Series 2017-A, 5.25% 2047		12,230		13,286
Other securities				294,020
				316,863

District of Columbia 1.05%
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-Backed Bonds, Series 2006-A, 0% 2046		169,320		29,941
Other securities				38,502
				68,443

Florida 5.61%
North Broward Hospital Dist., Rev. Bonds (Broward Health), Series 2017-B, 5.00% 2042		17,500		18,832
Other securities				345,384
				364,216

Georgia 1.79%
County of Burke, Dev. Auth., Pollution Control Rev. Bonds (Oglethorpe Power Corp. - Vogtle Project), Series 2017-C, 4.125% 2045		18,800		18,753
Other securities				97,452
				116,205

Hawaii 0.27%
Dept. of Budget and Fin., Special Purpose Rev. Ref. Bonds (Hawaiian Electric Co., Inc.), Series 2017-B, AMT, 4.00% 2037		13,800		14,031
Other securities				3,149
				17,180

Illinois 14.66%
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Alternate Rev.), Series 2015-C, 5.25% 2039		7,145		7,405
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-F, 5.00% 2018		800		806
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-F, 5.00% 2018 (escrowed to maturity)		200		202
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2011-A, 5.50% 2039		1,625		1,671
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2016-B, 6.50% 2046		6,650		7,615
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2017-A, 7.00% 2046¹		23,560		28,204
City of Chicago, Board of Education, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2017-C, 5.00% 2030		3,000		3,157
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2008-C, 5.00% 2029		1,610		1,613
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2008-C, 5.25% 2025		1,500		1,505
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-B, 6.75% 2030¹		3,500		4,207
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-B, 7.00% 2042¹		28,185		33,837
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-C, 5.00% 2021		2,000		2,083
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-C, 5.00% 2024		2,000		2,107

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Illinois (continued)
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-C, 5.00% 2025	$	4,000	$	4,218
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-D, 5.00% 2021		1,500		1,562
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-F, 5.00% 2024		2,000		2,107
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-G, 5.00% 2044		5,000		5,131
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-H, 5.00% 2036		10,000		10,346
City of Chicago, Board of Education, Unlimited Tax G.O. Rev. Ref. Bonds (Dedicated Rev.), Series 2017-H, 5.00% 2046		7,800		7,992
City of Chicago, Chicago Midway Airport, Rev. Ref. Bonds, Series 2014-A, AMT, 5.00% 2041		13,000		14,060
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Capital Appreciation Bonds, Series 1999-A, National insured, 0% 2025		1,015		756
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Capital Appreciation Bonds, Series 1999-A, National insured, 0% 2031		2,170		1,176
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 1998-B-1, National insured, 0% 2031		5,060		2,742
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 1999-A, National insured, 0% 2018		2,135		2,119
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 1999-A, National insured, 0% 2024		2,070		1,630
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 2011-A, 5.00% 2041		12,405		12,556
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 2012-A, 5.00% 2042		7,580		7,641
City of Chicago, School Reform Board of Trustees of the Board of Education, Unlimited Tax G.O. Bonds (Dedicated Tax Rev.), Series 2016-A, 7.00% 2044		6,510		7,578
City of Chicago, Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2017, Assured Guaranty Municipal insured, 5.00% 2051		21,750		23,197
Fin. Auth., Rev. Bonds (Friendship Village Schaumburg), Series 2017, 5.125% 2045		16,750		16,689
Fin. Auth., Rev. Bonds (Mercy Health Corp.), Series 2016, 5.00% 2040		12,000		13,035
Fin. Auth., Rev. Bonds (Mercy Health Corp.), Series 2016, 5.00% 2046		17,165		18,572
Fin. Auth., Student Housing Rev. Bonds (CHF-DeKalb II, LLC - Northern Illinois University Project), Series 2011, 6.875% 2043		16,510		17,855
G.O. Bonds, Series 2013, 5.00% 2021		860		903
G.O. Bonds, Series 2013, 5.00% 2023		685		731
G.O. Bonds, Series 2014, 5.00% 2026		2,025		2,151
G.O. Bonds, Series 2014, 5.00% 2027		2,000		2,142
G.O. Bonds, Series 2014, 5.00% 2039		13,550		14,010
G.O. Bonds, Series 2016, 4.00% 2032		6,000		5,795
G.O. Bonds, Series 2016, 5.00% 2025		1,000		1,076
G.O. Bonds, Series 2016, 5.00% 2028		1,500		1,602
G.O. Bonds, Series 2016, 5.00% 2033		4,000		4,224
G.O. Bonds, Series 2016, 5.00% 2038		1,000		1,048
G.O. Bonds, Series 2016, Assured Guaranty Municipal insured, 5.00% 2041		2,125		2,213
G.O. Bonds, Series 2017-A, 5.00% 2018		1,000		1,007
G.O. Bonds, Series 2017-A, 5.00% 2035		1,000		1,059
G.O. Bonds, Series 2017-A, 5.00% 2036		3,000		3,172
G.O. Bonds, Series 2017-C, 5.00% 2029		7,500		8,033
G.O. Bonds, Series 2017-D, 5.00% 2027		8,500		9,213
G.O. Bonds, Series 2017-D, BMA insured, 5.00% 2026		10,000		10,805
G.O. Bonds, Series 2017-D, BMA insured, 5.00% 2028		4,500		4,841
G.O. Rev. Ref. Bonds, Series 2012, 4.00% 2025		405		406
G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2026		3,000		3,233
G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2028		3,000		3,221
G.O. Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 4.00% 2030		750		778
Other securities				604,598
				951,635

34	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
Indiana 1.54%
Fin. Auth., Midwestern Disaster Relief Rev. Bonds (Ohio Valley Electric Corp. Project), Series 2012-A, 5.00% 2032	$	17,560	$	17,632
Other securities				82,595
				100,227

Massachusetts 2.40%
Dev. Fin. Agcy., Rev. Bonds (Linden Ponds, Inc. Fac.), Series 2011-A-1, 6.25% 2046		14,253		14,744
Dev. Fin. Agcy., Rev. Bonds (Linden Ponds, Inc. Fac.), Series 2016-A, 4.68% 2021¹		13,930		14,011
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2016-J, AMT, 3.50% 2033		23,225		23,091
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2017-A, AMT, 3.625% 2032		15,000		15,108
Other securities				88,823
				155,777

Michigan 2.83%
County of Wayne, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2012-D, AMT, 5.00% 2028		12,000		13,182
Other securities				170,682
				183,864

New Jersey 3.96%
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2013-I, (SIFMA Municipal Swap Index + 1.60%) 2.54% 2028²		13,500		13,382
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.125% 2023		3,500		3,794
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 1999, AMT, 5.25% 2029		16,300		17,735
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2000-B, AMT, 5.625% 2030		3,750		4,248
Econ. Dev. Auth., Special Fac. Rev. Bonds (Continental Airlines, Inc. Project), Series 2003, AMT, 5.50% 2033		3,500		3,873
Econ. Dev. Auth., Special Fac. Rev. Ref. Bonds (Continental Airlines, Inc. Project), Series 2012, AMT, 5.75% 2027		4,500		4,971
South Jersey Transportation Auth., Transportation System Rev. Bonds, Series 2014-A, 5.00% 2039		12,650		13,735
Other securities				195,522
				257,260

New York 3.77%
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		13,360		14,082
Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2017-C-1D, 4.00% 2019		16,900		17,134
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2020		15,100		15,873
Transportation Dev. Corp., Special Facs. Bonds (LaGuardia Airport Terminal B Redev. Project), Series 2016-A, AMT, 5.25% 2050		16,950		18,380
Other securities				179,482
				244,951

Ohio 3.81%
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-Backed Bonds, Convertible Capital Appreciation Bonds, Series 2007-A-3, 6.25% 2037³		9,430		9,878
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-Backed Bonds, Series 2007-A-2, 5.875% 2047		32,170		32,447
Buckeye Tobacco Settlement Fncg. Auth., Tobacco Settlement Asset-Backed Bonds, Series 2007-A-2, 6.50% 2047		34,155		35,179
Other securities				169,601
				247,105

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Oklahoma 0.72%
Trustees of the Tulsa Municipal Airport Trust, American Airlines Inc. Rev. Ref. Bonds, Series 2001-B, AMT, 5.50% 2035	$	15,875	$	17,012
Other securities				29,428
				46,440

Pennsylvania 5.51%
Econ. Dev. Fncg. Auth., Private Activity Rev. Bonds (The Pennsylvania Rapid Bridge Replacement Project), Series 2015, AMT, 5.00% 2034		16,300		17,929
County of Montgomery, Industrial Dev. Auth., Health Systems Rev. Bonds (Albert Einstein Healthcare Network Issue), Series 2015-A, 5.25% 2045		14,440		15,407
City of Philadelphia, Hospitals and Higher Education Facs. Auth., Hospital Rev. Bonds (Temple University Health System Obligated Group), Series 2012-A, 5.625% 2042		12,320		13,316
Other securities				311,222
				357,874

Puerto Rico 2.91%
Highways and Transportation Auth., Transportation Rev. Ref. Bonds, Series 2007-N, Assured Guaranty insured, 5.25% 2036		11,350		13,160
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		15,130		15,754
Other securities				160,223
				189,137

Texas 7.20%
County of Harris, Cultural Education Facs. Fin. Corp., First Mortgage Rev. Bonds (Brazos Presbyterian Homes, Inc. Project), Series 2016, 5.00% 2048		12,830		13,551
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.50% 2030		9,300		10,150
City of Houston, Airport System Special Facs. Rev. Bonds (Continental Airlines, Inc. Terminal Improvement Projects), Series 2011, AMT, 6.625% 2038		3,000		3,280
City of Houston, Airport System Special Facs. Rev. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2018-C, AMT, 5.00% 2028		20,000		22,378
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-B-1, AMT, 5.00% 2030		3,000		3,258
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Airport Improvement Projects), Series 2015-C, AMT, 5.00% 2020		8,485		8,928
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 4.75% 2024		5,500		5,946
City of Houston, Airport System Special Facs. Rev. Ref. Bonds (United Airlines, Inc. Terminal E Project), Series 2014, AMT, 5.00% 2029		6,745		7,304
Turnpike Auth., Central Texas Turnpike System, Rev. Bonds, Series 2002-A, AMBAC insured, 0% 2028		21,800		15,836
Other securities				376,933
				467,564

Utah 0.54%
Hideout Local Dist. No. 1, Special Assessment Bonds, Series 2017, 6.75% 2037¹		27,800		27,833
Other securities				7,146
				34,979

Virginia 1.97%
City of Newport News, Industrial Dev. Auth., Health Systems Rev. Ref. Bonds (Custodial Receipts), Series 2015, 5.33% 2045¹		27,900		29,397
Other securities				98,585
				127,982

Wisconsin 2.31%
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2016-A, AMT, 3.50% 2046		16,430		16,879
Other securities				132,833
				149,712

36	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Principal amount (000)		Value (000)
Other states & U.S. territories 23.34%
Other securities			$	1,514,606

Total bonds, notes & other debt instruments (cost: $5,922,796,000)				6,057,856

Short-term securities 5.97%
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.29% 8/7/2018	$	5,000		5,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009, 1.64% 8/2/2018		5,000		5,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-A, 1.27% 10/3/2018		4,000		4,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.13% 8/9/2018		1,000		1,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2010-B, 1.28% 10/10/2018		6,750		6,750
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2007-A, 1.48% 2030²		500		500
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-F, 1.52% 2030²		3,125		3,125
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-K, 1.52% 2035²		1,100		1,100
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2010-L, 1.52% 2035²		15,450		15,450
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2011-E, 1.48% 2035²		10,000		10,000
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2017-C-2A, 4.00% 5/15/2019		32,000		32,635
State of New York, New York City G.O. Bonds, Fiscal 2014, Series 2013-D-3, 1.50% 2038²		21,945		21,945
State of New York, New York City G.O. Bonds, Series 2006-H-1, 1.50% 2036²		1,000		1,000
State of New York, New York City G.O. Bonds, Series 2006-L-5, 1.49% 2035²		3,000		3,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2010-G-5, 1.05% 2034²		2,000		2,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2003, Series 2002-A-2, 1.56% 2029²		1,000		1,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 1.50% 2045²		4,000		4,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 1.50% 2045²		21,990		21,990
State of New York, New York City Transitional Fin. Auth., Recovery Bonds, Fiscal 2003, Series 2002-1-C, 1.50% 2022²		9,060		9,060
State of Oregon, Full Faith and Credit Tax Anticipation Notes, Series 2017-A, 5.00% 9/28/2018		17,000		17,098
State of Pennsylvania, Econ. Dev. Fncg. Auth., Solid Waste Disposal Rev. Bonds (Republic Services, Inc. Project), Series 2014, AMT, 1.85% 2044 (put 2018)⁴		17,000		17,000
State of Texas, County of Jefferson, Port Arthur Navigation Dist., Pollution Control Rev. Ref. Bonds (Texaco Inc. Project), Series 1994, 1.48% 2024²		17,100		17,100
State of Texas, Tax and Rev. Anticipation Notes, Series 2017, 4.00% 8/30/2018		46,190		46,292
Other securities				141,568

Total short-term securities (cost: $387,573,000)				387,613
Total investment securities 99.29% (cost: $6,310,369,000)				6,445,469
Other assets less liabilities 0.71%				45,947

Net assets 100.00%			$	6,491,416

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes a security which was valued under fair value procedures adopted by authority of the board of trustees. The total value of the security which was valued under fair value procedures was $6,636,000, which represented .10% of the net assets of the fund.

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)		⁵	Value at 7/31/2018 (000)		⁶	Unrealized (depreciation) appreciation at 7/31/2018 (000)
5 Year U.S. Treasury Note Futures	Long	1,750	October 2018		$175,000			$197,969			$	(373	)
30 Year Ultra U.S. Treasury Bond Futures	Short	350	September 2018		(35,000	)		(54,917	)			270
											$	(103	)

¹	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $728,898,000, which represented 11.23% of the net assets of the fund.
²	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
³	Step bond; coupon rate may change at a later date.
⁴	For short-term securities, the mandatory put date is considered to be the maturity date.
⁵	Notional amount is calculated based on the number of contracts and notional contract size.
⁶	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

SIFMA = Securities Industry and Financial Markets Association

USD/$ = U.S. dollars

See Notes to Financial Statements

38	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 95.08%	Principal amount (000)		Value (000)
California 94.02%
State issuers 35.14%
Trustees of the California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2034	$	2,000	$	2,120
Trustees of the California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2035		10,000		10,559
Trustees of the California State University, Systemwide Rev. Bonds, Series 2016-A, 4.00% 2037		6,645		6,974
Trustees of the California State University, Systemwide Rev. Bonds, Series 2016-B-2, 4.00% 2049 (put 2021)		5,000		5,284
Trustees of the California State University, Systemwide Rev. Ref. Bonds, Series 2012-A, 5.00% 2027		3,000		3,382
Educational Facs. Auth., Rev. Ref. Bonds (Chapman University), Series 2011, 5.00% 2031		8,615		9,270
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2005-A, Assured Guaranty Municipal insured, 0% 2026		11,000		8,916
Health Facs. Fncg. Auth., Rev. Bonds (Sutter Health), Series 2011-D, 5.25% 2031		2,000		2,207
Health Facs. Fncg. Auth., Rev. Ref. Bonds (El Camino Hospital), Series 2015-A, 5.00% 2040		8,700		9,666
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Health Care), Series 2017-A, 5.00% 2034		12,000		14,145
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Stanford Hospital and Clinics), Series 2010-B, 5.25% 2031 (preref. 2020)		8,000		8,679
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2008-A, 5.25% 2022		2,000		2,022
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2033		1,000		1,150
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2034		2,000		2,294
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-A, 5.00% 2035		2,000		2,285
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-B, 4.00% 2038		9,165		9,498
Health Facs. Fncg. Auth., Rev. Ref. Bonds (Sutter Health), Series 2016-B, 5.00% 2035		1,000		1,150
Imperial Irrigation Dist., Electric System Rev. Ref. Bonds, Series 2016-B-2, 5.00% 2041		6,975		7,960
Infrastructure and Econ. Dev. Bank, Rev. Bonds (The Colburn School), Series 2015-B, (SIFMA Municipal Swap Index + 1.20%) 2.14% 2037 (put 2022)¹		8,500		8,714
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2013-A-2, (1-month USD-LIBOR x 0.70 + 0.50%) 1.95% 2047 (put 2019)¹		10,000		10,016
Municipal Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2017-A, AMT, 2.00% 2044 (put 2020)		7,000		6,978
Northern California Gas Auth. No. 1, Gas Project Rev. Bonds, Series 2007-B, (3-month USD-LIBOR + 0.67%) 2.286% 2027¹		8,105		7,944
Pollution Control Fncg. Auth., Water Furnishing Rev. Bonds (Poseidon Resources (Channelside) LP Desalination Project), Series 2012 Plant Bonds, AMT, 5.00% 2045²		8,775		9,305
Statewide Communities Dev. Auth., Rev. Bonds (Huntington Memorial Hospital), Series 2014, 5.00% 2044		8,500		9,309
Statewide Communities Dev. Auth., Rev. Bonds (John Muir Health), Series 2016-A, 4.00% 2046		10,395		10,595
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2012-A, 5.00% 2042		6,500		7,087
Statewide Communities Dev. Auth., Rev. Bonds (Sutter Health), Series 2011-A, 5.25% 2024 (preref. 2020)		1,000		1,075
Statewide Communities Dev. Auth., Rev. Bonds (Sutter Health), Series 2011-A, 6.00% 2042 (preref. 2020)		4,500		4,905
Statewide Communities Dev. Auth., Student Housing Rev. Custodial Bonds, Series 2017, 4.305% 2032		8,300		8,857
Regents of the University of California, Limited Project Rev. Bonds, Series 2016-K, 5.00% 2034		2,500		2,903
Regents of the University of California, Limited Project Rev. Bonds, Series 2016-K, 5.00% 2035		7,500		8,670
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 4.00% 2037		1,585		1,646
Regents of the University of California, Medical Center Pooled Rev. Bonds, Series 2016-L, 4.00% 2038		1,000		1,035
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, (3-month USD-LIBOR + 0.67%) 2.239% 2037¹		5,100		4,732
Regents of the University of California, Medical Center Pooled Rev. Ref. Bonds, Series 2007-C-2, National insured, (3-month USD-LIBOR + 0.74%) 2.309% 2043¹		8,000		7,165
Dept. of Veterans Affairs, Veterans G.O. Rev. Ref. Bonds, Series 2016-CN, 3.50% 2045		8,850		9,131
Other securities				564,929
				792,557

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
California (continued)
City, county & other issuers 58.88%
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2025	$	1,700	$	1,944
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2013-A, 5.00% 2026		6,375		7,275
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2034		2,000		2,258
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2036		1,000		1,123
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, 5.00% 2037		3,790		4,239
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 4.00% 2035		2,500		2,606
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 4.00% 2037		2,000		2,070
Alameda Corridor Transportation Auth., Rev. Ref. Bonds, Series 2016-B, Assured Guaranty Municipal insured, 5.00% 2036		1,500		1,695
Baldwin Park Unified School Dist., G.O. Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 4.00% 2031		6,420		6,869
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Bonds (Eskaton Properties Inc. Obligated Group), Series 2013, 5.00% 2035		7,350		7,977
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2006-C-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹		2,000		2,036
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2008-B-1, (SIFMA Municipal Swap Index + 1.10%) 2.04% 2045 (put 2024)¹		7,900		8,128
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-G, (SIFMA Municipal Swap Index + 0.60%) 1.54% 2034 (put 2020)¹		2,750		2,765
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-H, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2034 (put 2021)¹		4,000		4,047
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-B, 2.85% 2047 (put 2025)		1,000		1,034
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-D, (3-month USD-LIBOR x 0.70 + 0.55%) 2.186% 2045 (put 2021)¹		4,000		4,034
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-F-1, 5.00% 2056		5,000		5,640
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.125% 2039 (preref. 2019)		2,000		2,052
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2009-F-1, 5.625% 2044 (preref. 2019)		1,670		1,719
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-C, 1.875% 2047 (put 2019)		1,250		1,252
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2014-F-1, 5.00% 2054		5,000		5,520
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Ref. Bonds, Series 2017-S-7, 5.00% 2028		4,500		5,552
Chabot-Las Positas Community College Dist., G.O. Rev. Ref. Bonds, Series 2016, 4.00% 2034		9,940		10,533
Coachella Valley Unified School Dist., G.O. Bonds, 2005 Election, Series 2016-E, Assured Guaranty Municipal insured, 4.00% 2045		6,555		6,763
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2013-A, 6.00% 2053		7,500		8,669
Foothill/Eastern Transportation Corridor Agcy., Toll Road Rev. Ref. Bonds, Series 2014-A, 6.00% 2049		5,800		6,717
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2016-B, AMT, 5.00% 2029		1,450		1,667
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2016-B, AMT, 5.00% 2031		2,395		2,727
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2016-B, AMT, 5.00% 2033		500		566
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2016-B, AMT, 5.00% 2036		1,000		1,122
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2030		1,000		1,161
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2032		1,000		1,150
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2033		1,000		1,145
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2034		1,250		1,427

40	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

	Principal amount (000)		Value (000)
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2035	$	1,000	$	1,138
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2036		1,400		1,588
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2017-A, AMT, 5.00% 2037		1,260		1,425
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2018-A, AMT, 5.00% 2033		1,255		1,455
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2018-A, AMT, 5.00% 2036		1,345		1,543
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2018-A, AMT, 5.00% 2037		1,450		1,659
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2018-A, AMT, 5.00% 2044		1,230		1,397
City of Los Angeles, Dept. of Airports, Los Angeles International Airport Rev. Bonds, Series 2018-B, AMT, 5.00% 2032		5,000		5,861
Port of Oakland, Rev. Ref. Bonds, Series 2017-D, AMT, 5.00% 2023		6,000		6,799
Oxnard Unified School Dist., G.O. Rev. Ref. Bonds, Series 2017-A, BAM insured, 5.00% 2045		6,770		7,745
Palomar Pomerado Health, G.O. Bonds, 2004 Election, Series 2009-A, Assured Guaranty insured, 0% 2029		9,350		6,433
Pasadena Unified School Dist., G.O. Bonds, 2008 Election, Series 2016, 4.00% 2032		5,000		5,342
Pasadena Unified School Dist., G.O. Bonds, 2008 Election, Series 2016, 4.00% 2034		5,040		5,344
Pasadena Unified School Dist., G.O. Bonds, 2008 Election, Series 2016, 4.00% 2035		15,940		16,833
Pasadena Unified School Dist., G.O. Bonds, 2008 Election, Series 2016, 4.00% 2036		2,250		2,365
Pollution Control Fncg. Auth., Rev. Bonds (San Jose Water Company Project), Series 2016, AMT, 4.75% 2046		11,475		12,349
Poway Unified School Dist., School Facs. Improvement Dist. No. 2007-1, G.O. Bonds, 2008 Election, Series 2011-B, 0% 2035		12,850		6,845
County of Sacramento, Sanitation Dist. Fncg. Auth., Rev. Ref. Bonds (Sacramento Regional County Sanitation Dist.), Series 2007-B, FGIC-National insured, (3-month USD-LIBOR + 0.53%) 2.071% 2035¹		13,500		13,111
City of San Buenaventura, Rev. Bonds (Community Memorial Health System), Series 2011, 7.50% 2041		10,825		12,055
City and County of San Francisco, Public Utilities Commission, Wastewater Rev. Green Bonds, Series 2016-A, 4.00% 2037		6,575		6,905
City of San Jose, Airport Rev. Ref. Bonds, Series 2011-A-1, AMT, 5.50% 2030		8,000		8,659
Southwestern Community College Dist., G.O. Bonds, 2016 Election, Series 2017-A, 4.00% 2047		13,500		13,985
Stockton Unified School Dist., G.O. Rev. Ref. Bonds, Series 2016, 5.00% 2031		7,800		9,022
Tobacco Securitization Auth. of Southern California, Tobacco Settlement Asset-Backed Rev. Ref. Bonds (San Diego County Tobacco Asset Securitization Corp.), Series 2006-A, 5.125% 2046		7,800		7,842
Victor Valley Union High School Dist., G.O. Rev. Ref. Bonds, Series 2016-A, BAM insured, 4.00% 2032		7,500		7,937
City of Whittier, Health Fac. Rev. Bonds (PIH Health), Series 2014, 5.00% 2044		10,000		10,834
Other securities				1,026,105
				1,328,058

Puerto Rico 0.59%
Industrial, Tourist, Educational, Medical and Environmental Control Facs. Fncg. Auth., Hospital Rev. and Rev. Ref. Bonds (Hospital Auxilio Mutuo Obligated Group Project), Series 2011-A, 6.00% 2033		7,900		8,226
Other securities				5,014
				13,240

Other U.S. territories 0.47%
Other securities				10,641

Total bonds, notes & other debt instruments (cost: $2,098,829,000)				2,144,496

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

Short-term securities 4.84%	Principal amount (000)		Value (000)
IAM Commercial Paper, Series 2018-A-1, 1.25% 9/12/2018	$	1,000	$	1,000
IAM Commercial Paper, Series 2018-A-6, 1.05% 8/3/2018		12,975		12,975
IAM Commercial Paper, Series 2018-A-6, 1.37% 9/4/2018		1,050		1,050
IAM Commercial Paper, Series 2018-A-8, 1.35% 9/5/2018		10,000		10,000
County of Los Angeles, Lease Rev. Bonds, Series 2018-B, 1.20% 8/7/2018		6,000		6,000
County of Los Angeles, Tax and Rev. Anticipation Notes, Series 2018, 4.00% 6/28/2019		8,000		8,183
Pollution Control Fncg. Auth., Environmental Impact Rev. Bonds (Air Products and Chemicals, Inc. Project), Series 1997-B, 1.35% 2042¹		10,025		10,025
Pollution Control Fncg. Auth., Pollution Control Rev. Ref. Bonds (Pacific Gas and Electric Co.), Series 1996-C, JPMorgan Chase LOC, 1.40% 2026¹		15,800		15,800
University of California, IAM Commercial Paper, Series 2018, 1.63% 8/7/2018		7,000		7,000
University of California, IAM Commercial Paper, Series 2018-A, 1.22% 8/20/2018		13,000		13,000
Other securities				24,045
Total short-term securities (cost: $109,066,000)				109,078

Total investment securities 99.92% (cost: $2,207,895,000)				2,253,574
Other assets less liabilities 0.08%				1,788

Net assets 100.00%			$	2,255,362

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $69,328,000, which represented 3.07% of the net assets of the fund.

Key to abbreviations and symbol

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

SIFMA = Securities Industry and Financial Markets Association

USD/$ = U.S. dollars

See Notes to Financial Statements

42	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Summary investment portfolio July 31, 2018

Bonds, notes & other debt instruments 91.90%	Principal amount (000)		Value (000)
New York 89.61%
State issuers 45.64%
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, Assured Guaranty Municipal insured, 4.00% 2034	$	240	$	250
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, Assured Guaranty Municipal insured, 5.00% 2030		500		560
Brooklyn Arena Local Dev. Corp., Pilot Rev. Ref. Bonds (Brooklyn Events Center LLC), Series 2016-A, Assured Guaranty Municipal insured, 5.00% 2042		1,500		1,628
Dormitory Auth., Income Tax Rev. Bonds, Series 2017-B, 5.00% 2042		1,130		1,288
Dormitory Auth., Montefiore Obligated Group Bonds, Series 2018-A, 5.00% 2031		145		166
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.25% 2021 (preref. 2020)		500		533
Dormitory Auth., New School Rev. Bonds, Series 2010, 5.50% 2040 (preref. 2020)		500		536
Dormitory Auth., New School Rev. Bonds, Series 2015-A, 5.00% 2032		1,000		1,124
Dormitory Auth., New School Rev. Bonds, Series 2016-A, 5.00% 2035		500		564
Dormitory Auth., New York School Dist. Rev. Bonds, Series 2017-A, 5.00% 2025		1,000		1,169
Dormitory Auth., New York University Rev. Bonds, Series 2018-A, 5.00% 2032		500		595
Dormitory Auth., North Shore-Long Island Jewish Obligated Group Rev. Bonds, Series 2011-A, 5.00% 2032 (preref. 2021)		1,500		1,632
Dormitory Auth., Orange Regional Medical Center Obligated Group Rev. Bonds, Series 2015, 5.00% 2040¹		1,000		1,085
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2018-A, 5.00% 2032		1,000		1,152
Dormitory Auth., Skidmore College Rev. Bonds, Series 2011-A, 5.50% 2041		1,110		1,213
Dormitory Auth., State Sales Tax Rev. Bonds, Series 2017-B, 5.00% 2033		1,000		1,162
Environmental Facs. Corp., Rev. Green Bonds (Revolving Funds), Series 2016-B, 4.00% 2036		1,950		2,051
Liberty Dev. Corp., Liberty Rev. Bonds (Goldman Sachs Headquarters Issue), Series 2005, 5.25% 2035		1,000		1,232
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (3 World Trade Center Project), Series 2014, Class 2, 5.15% 2034¹		1,250		1,373
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (4 World Trade Center Project), Series 2011, 5.00% 2031		1,500		1,634
Liberty Dev. Corp., Liberty Rev. Ref. Bonds (Bank of America Tower at One Bryant Park Project), Series 2010, 6.375% 2049		1,500		1,581
Long Island Power Auth., Electric System General Rev. Bonds, Series 2008-A, 6.00% 2033 (preref. 2019)		1,000		1,034
Long Island Power Auth., Electric System General Rev. Bonds, Series 2011-A, 5.00% 2038 (preref. 2021)		500		544
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-A, 5.00% 2044		740		822
Long Island Power Auth., Electric System General Rev. Bonds, Series 2014-C, (1-month USD-LIBOR x 0.70 + 0.65%) 2.114% 2033 (put 2018)²		1,000		1,000
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2035		1,215		1,365
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-B, 5.00% 2038		750		836
Long Island Power Auth., Electric System General Rev. Bonds, Series 2015-C, (1-month USD-LIBOR x 0.70 + 0.88%) 2.344% 2033 (put 2018)²		300		300
Long Island Power Auth., Electric System General Rev. Bonds, Series 2017, 5.00% 2035		1,000		1,147
Long Island Power Auth., Electric System General Rev. Bonds, Series 2017, 5.00% 2047		1,500		1,695
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2002-B-3D, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2020²		2,000		2,034
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2012-E, 5.00% 2031 (preref. 2022)		1,000		1,131
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-D-1, 5.00% 2039		250		279
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2039 (put 2020)²		500		501
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.00% 2035		1,750		1,971
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-C-1, 5.25% 2030		280		327
Metropolitan Transportation Auth., Transportation Rev. Green Bonds, Series 2017-A-1, 5.25% 2057		750		852
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-D-2A, Assured Guaranty Municipal insured, (1-month USD-LIBOR x 0.69 + 0.68%) 2.123% 2032 (put 2021)²		600		605
Metropolitan Transportation Auth., Transportation Rev. Ref. Green Bonds, Series 2017-C-1, 4.00% 2034		1,000		1,055
Metropolitan Transportation Auth., Transportation Rev. Ref. Green Bonds, Series 2017-C-1, 5.00% 2028		750		890

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
State issuers (continued)
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043	$	360	$	370
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, AMT, 3.50% 2034		445		453
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 194, AMT, 3.50% 2035		550		563
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 195, 4.00% 2046		1,710		1,786
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044		835		862
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 200, 3.50% 2045		295		304
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 203, 3.50% 2047		1,000		1,033
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 206, AMT, 4.00% 2037		675		708
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 208, 4.00% 2048		600		633
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 46, 5.00% 2029		35		36
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 48, 2.625% 2041		435		438
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 52, AMT, 3.50% 2030		895		918
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 54, 4.00% 2047		1,715		1,801
Mortgage Agcy., Homeowner Mortgage Rev. Ref. Bonds, Series 45, 4.50% 2029		125		128
Port Auth., Consolidated Bonds, Series 166, 5.00% 2031		1,000		1,071
Port Auth., Consolidated Bonds, Series 205, 5.00% 2047		1,000		1,146
Port Auth., Consolidated Rev. Ref. Bonds, Series 167, AMT, 5.00% 2025		1,000		1,070
Port Auth., Consolidated Rev. Ref. Bonds, Series 172, AMT, 5.00% 2034		500		542
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2044		500		551
Power Auth., Rev. Ref. Bonds, Series 2011-A, 5.00% 2038		1,500		1,640
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2020		1,000		1,051
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2026		500		527
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (American Airlines, Inc. John F. Kennedy International Airport Project), Series 2016, AMT, 5.00% 2031		2,500		2,619
Transportation Dev. Corp., Special Facs. Rev. Bonds (Delta Air Lines, Inc. LaGuardia Airport Terminals C & D Redev. Project), Series 2018, AMT 5.00% 2030		1,500		1,702
Triborough Bridge and Tunnel Auth., General Rev. Bonds (MTA Bridges and Tunnels), Series 2018-A, 5.00% 2046		1,000		1,153
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2027		1,500		1,707
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2026		1,500		1,772
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (General Purpose), Series 2016-A, 5.00% 2032		1,000		1,147
Urban Dev. Corp., State Personal Income Tax Rev. Bonds (State Facs. and Equipment), Series 2009-B-1, 5.25% 2038 (preref. 2019)		1,000		1,024
Utility Debt Securitization Auth., Restructuring Bonds, Series 2017, 5.00% 2040		1,250		1,454
Other securities				37,736

				108,861
City, county & other issuers 43.97%
Buffalo and Erie County Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Project), Series 2015, 5.00% 2023		1,600		1,799
Buffalo and Erie County Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Project), Series 2015, 5.00% 2040		1,050		1,131
Buffalo and Erie County Industrial Land Dev. Corp., Obligated Group Rev. Bonds (Catholic Health System, Inc. Project), Series 2015, 5.25% 2035		500		550
Buffalo and Erie County Industrial Land Dev. Corp., Rev. Bonds (Buffalo State College Foundation Housing Corp. Project), Series 2011-A, 5.375% 2041		1,400		1,515
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 4.00% 2019		485		491
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 4.00% 2021		525		542
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 4.00% 2022		545		564
Build NYC Resource Corp., Rev. Bonds (Bronx Charter School for Excellence Project), Series 2013-A, 5.50% 2043		1,000		1,026
Village of Dobbs Ferry, Local Dev. Corp., Rev. Bonds (Mercy College Project), Series 2014, 5.00% 2039		1,625		1,819
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2017, Series 2017-A, 5.00% 2033		1,000		1,155

44	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

	Principal amount (000)		Value (000)
Hudson Yards Infrastructure Corp., Rev. Bonds, Fiscal 2017, Series 2017-A, 5.00% 2035	$	1,000	$	1,148
Hudson Yards Infrastructure Corp., Rev. Bonds, Series 2011-A, 5.75% 2047		435		474
Hudson Yards Infrastructure Corp., Rev. Bonds, Series 2011-A, 5.75% 2047 (preref. 2021)		565		622
Hudson Yards Infrastructure Corp., Rev. Bonds, Series 2012-A, 5.25% 2047		955		1,026
Hudson Yards Infrastructure Corp., Rev. Bonds, Series 2012-A, 5.25% 2047 (preref. 2021)		45		49
County of Nassau, G.O. Bonds, Series 2014-A, 5.00% 2028		1,250		1,405
County of Nassau, G.O. Bonds, Series 2016-B, 5.00% 2025		1,000		1,159
County of Nassau, G.O. General Improvement Bonds, Series 2016-B, 5.00% 2023		750		850
County of Nassau, G.O. General Improvement Rev. Ref. Bonds, Series 2016-A, 5.00% 2027		500		577
County of Nassau, G.O. General Improvement Rev. Ref. Bonds, Series 2016-A, 5.00% 2030		1,795		2,041
New York City G.O. Bonds, Fiscal 2017, Series 2016-A-1, 5.00% 2034		1,000		1,145
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2031		1,000		1,179
New York City G.O. Bonds, Fiscal 2018, Series 2017-C, 5.00% 2032		1,720		2,016
New York City G.O. Bonds, Series 2015-A, 5.00% 2026		1,000		1,168
New York City G.O. Bonds, Series 2015-C, 5.00% 2033		1,000		1,136
New York City G.O. Bonds, Series 2016-C, 5.00% 2031		1,000		1,149
New York City G.O. Bonds, Series 2017-A, 5.00% 2027		1,500		1,791
New York City G.O. Bonds, Series 2018-E-1, 5.00% 2037		500		578
New York City G.O. Bonds, Series 2018-F-1, 5.00% 2037		1,000		1,157
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (8 Spruce Street), Series 2014-E, 3.50% 2048		1,670		1,668
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2015-H, 2.95% 2045 (put 2026)		750		756
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-A-1-A, 3.80% 2037		885		893
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-C-1, 3.45% 2037		1,000		999
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-C-2, 1.70% 2021		400		397
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-G-2-A, 2.00% 2057 (put 2021)		750		749
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2017, Series 2017-DD, 5.00% 2047		1,055		1,196
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2017, Series 2017-EE, 5.00% 2033		750		869
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2018, Series 2018-BB-1, 5.00% 2046		1,250		1,420
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2018, Series 2018-EE, 5.00% 2040		1,000		1,149
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2011-EE, 5.375% 2043		1,000		1,081
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2014-EE, 5.00% 2045		500		559
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Series 2015-HH, 5.00% 2039		500		560
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Ref. Bonds, Series 2017-EE, 5.00% 2036		750		861
New York City Transitional Fin. Auth., Building Aid Rev. Bonds, Fiscal 2019, Series S-1, 5.00% 2043		1,000		1,148
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011, Series 2011-C, 5.25% 2025		700		754
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2011, Series 2011-C, 5.25% 2025 (preref. 2020)		300		323
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2017, Series 2017-C, 5.00% 2032		1,000		1,162
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2018, Series A-3, 4.00% 2042		1,080		1,117
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Fiscal 2019, Series 2018-A-1, 5.00% 2036		1,500		1,744
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2017-E-1, 5.00% 2043		1,000		1,133
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2017-F-1, 5.00% 2039		750		855

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
New York (continued)
City, county & other issuers (continued)
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2017-F-1, 5.00% 2042	$	1,965	$	2,235
New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2018-C-3, 4.00% 2045		1,000		1,034
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Fiscal 2010, Series D, 5.00% 2023		1,000		1,056
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-C, 5.00% 2026		1,000		1,173
County of Onondaga, Resource Recovery Agcy., Rev. Ref. Bonds, Series 2015-A, AMT, Assured Guaranty Municipal insured, 5.00% 2030		1,750		1,929
Town of Southold, Local Dev. Corp., Rev. Bonds (Peconic Landing at Southold, Inc. Project), Series 2015, 5.00% 2045		1,500		1,563
County of Suffolk, Econ. Dev. Corp., Rev. Ref. Bonds (Peconic Landing at Southold, Inc. Project), Series 2010, 5.875% 2030		1,000		1,074
County of Westchester, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030		130		140
County of Westchester, Health Care Corp., Rev. Bonds, Series 2010-B, 6.00% 2030 (preref. 2020)		870		952
County of Westchester, Health Care Corp., Rev. Bonds, Series 2011-A, 5.00% 2021		100		108
County of Westchester, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2034		1,150		1,250
County of Westchester, Local Dev. Corp., Rev. Bonds (Westchester Medical Center Obligated Group Project), Series 2016, 5.00% 2046		1,000		1,072
Other securities				38,617
				104,858

Other U.S. Territories 2.29%
Other securities				5,451

Total bonds, notes & other debt instruments (cost: $215,880,000)				219,170

Short-term securities 8.05%
Dormitory Auth., IAM Commercial Paper, Series 2002-C, 1.60% 8/2/2018		4,000		4,000
Dormitory Auth., University of Rochester Rev. Bonds, Series 2003-A, JPMorgan Chase LOC, 1.50% 2031²		1,270		1,270
Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2018-A-1, 4.00% 8/15/2019		1,500		1,535
New York City G.O. Bonds, Fiscal 2014, Series 2013-D-3, 1.50% 2038²		900		900
New York City Housing Dev. Corp., Multi Family Mortgage Rev. Bonds (Bruckner by the Bridge), Series 2008-A, 1.46% 2048²		3,000		3,000
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2014, Series 2013-AA-2, 1.50% 2050²		2,175		2,175
New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2016, Series 2015-AA-1, 1.49% 2048²		1,000		1,000
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 1.50% 2045²		400		400
New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 1.50% 2045²		400		400
Triborough Bridge and Tunnel Auth., General Rev. Bonds (MTA Bridges and Tunnels), Series 2003-B-1, 1.49% 2033²		1,500		1,500
Triborough Bridge and Tunnel Auth., General Rev. Bonds (MTA Bridges and Tunnels), Series 2005-B-2, 1.42% 2032²		1,000		1,000
Other securities				2,020

Total short-term securities (cost: $19,200,000)				19,200
Total investment securities 99.95% (cost: $235,080,000)				238,370
Other assets less liabilities 0.05%				131

Net assets 100.00%			$	238,501

46	American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $7,920,000, which represented 3.32% of the net assets of the fund.
²	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.

Key to abbreviations and symbol

Agcy. = Agency

AMT = Alternative Minimum Tax

Auth. = Authority

Dept. = Department

Dev. = Development

Dist. = District

Econ. = Economic

Fac. = Facility

Facs. = Facilities

Fin. = Finance

Fncg. = Financing

G.O. = General Obligation

LIBOR = London Interbank Offered Rate

LOC = Letter of Credit

Preref. = Prerefunded

Redev. = Redevelopment

Ref. = Refunding

Rev. = Revenue

SIFMA = Securities Industry and Financial Markets Association

USD/$ = U.S. dollars

American Funds Tax-Exempt Funds

Financial statements

Statements of assets and liabilities
at July 31, 2018

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America

Assets:
Investment securities in unaffiliated issuers, at value	$	979,803		$	3,928,884
Cash		124			3,968
Cash pledged for futures contracts		134			418
Receivables for:
Sales of investments		50			37,440
Sales of fund’s shares		1,412			5,338
Interest		7,624			34,563
Variation margin on futures contracts		4			5
Other		10			37
		989,161			4,010,653

Liabilities:
Payables for:
Purchases of investments		9,395			37,719
Repurchases of fund’s shares		1,083			5,446
Dividends on fund’s shares		44			499
Investment advisory services		298			770
Services provided by related parties		81			714
Trustees’ deferred compensation		33			142
Variation margin on futures contracts		—			—
Other		40			52
		10,974			45,342
Net assets at July 31, 2018	$	978,187		$	3,965,311

Net assets consist of:
Capital paid in on shares of beneficial interest	$	986,260		$	3,953,115
Undistributed net investment income		40			328
Accumulated net realized loss		(3,334	)		(365	)
Net unrealized (depreciation) appreciation		(4,779	)		12,233
Net assets at July 31, 2018	$	978,187		$	3,965,311

Investment securities in unaffiliated issuers, at cost	$	984,481		$	3,916,741

See Notes to Financial Statements

48	American Funds Tax-Exempt Funds

(dollars in thousands)

The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York

$	19,016,682		$	6,445,469		$	2,253,574		$	238,370
	1,173			726			238			456
	1,847			415			—			—

	60,768			20,142			—			667
	28,124			9,958			3,846			23
	183,193			63,457			27,611			2,294
	55			14			—			—
	284			112			9			4
	19,292,126			6,540,293			2,285,278			241,814

	225,185			34,998			24,391			2,907
	28,598			9,249			3,606			138
	2,530			1,521			677			110
	3,344			1,531			557			67
	2,837			1,181			466			40
	662			122			140			1
	813			219			—			—
	95			56			79			50
	264,064			48,877			29,916			3,313
$	19,028,062		$	6,491,416		$	2,255,362		$	238,501

$	18,771,212		$	6,371,114		$	2,208,312		$	235,219
	9,749			11,973			1,779			116
	(10,333	)		(26,668	)		(408	)		(124	)
	257,434			134,997			45,679			3,290
$	19,028,062		$	6,491,416		$	2,255,362		$	238,501

$	18,761,117		$	6,310,369		$	2,207,895		$	235,080

American Funds Tax-Exempt Funds

Statements of assets and liabilities
at July 31, 2018

		American Funds Short-Term Tax-Exempt Bond Fund		Limited Term Tax-Exempt Bond Fund of America
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized

Class A:	Net assets	$	751,913	$	3,056,914
	Shares outstanding		74,909		196,925
	Net asset value per share	$	10.04	$	15.52
Class C:	Net assets			$	20,365
	Shares outstanding		Not applicable		1,312
	Net asset value per share			$	15.52
Class T:	Net assets	$	10	$	10
	Shares outstanding		1		1
	Net asset value per share	$	10.04	$	15.52
Class F-1:	Net assets	$	6,945	$	63,639
	Shares outstanding		692		4,099
	Net asset value per share	$	10.04	$	15.52
Class F-2:	Net assets	$	52,597	$	352,839
	Shares outstanding		5,240		22,730
	Net asset value per share	$	10.04	$	15.52
Class F-3:	Net assets	$	45,080	$	187,627
	Shares outstanding		4,491		12,087
	Net asset value per share	$	10.04	$	15.52
Class R-6:	Net assets	$	121,642	$	283,917
	Shares outstanding		12,118		18,290
	Net asset value per share	$	10.04	$	15.52

See Notes to Financial Statements

50	American Funds Tax-Exempt Funds

(dollars and shares in thousands, except per-share amounts)

The Tax-Exempt Bond Fund of America		American High-Income Municipal Bond Fund		The Tax-Exempt Fund of California		American Funds Tax-Exempt Fund of New York

$	10,102,265	$	4,062,292	$	1,677,805	$	182,791
	788,687		257,355		96,262		17,229
$	12.81	$	15.78	$	17.43	$	10.61
$	431,386	$	226,538	$	71,335	$	11,713
	33,678		14,352		4,093		1,104
$	12.81	$	15.78	$	17.43	$	10.61
$	10	$	10	$	10	$	10
	1		1		1		1
$	12.81	$	15.78	$	17.43	$	10.61
$	369,587	$	207,544	$	74,888	$	2,019
	28,854		13,148		4,296		190
$	12.81	$	15.78	$	17.43	$	10.61
$	2,177,192	$	798,512	$	257,416	$	15,833
	169,974		50,587		14,769		1,492
$	12.81	$	15.78	$	17.43	$	10.61
$	5,397,368	$	646,018	$	173,908	$	26,135
	421,374		40,927		9,978		2,463
$	12.81	$	15.78	$	17.43	$	10.61
$	550,254	$	550,502
	42,959		34,876		Not applicable		Not applicable
$	12.81	$	15.78

American Funds Tax-Exempt Funds

Statements of operations
for the year ended July 31, 2018

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America
Investment income:
Income:
Interest	$	18,935		$	103,344

*Fees and expenses:**
Investment advisory services		3,548			9,138
Distribution services		1,150			9,649
Transfer agent services		326			1,588
Administrative services		194			764
Reports to shareholders		28			109
Registration statement and prospectus		158			330
Trustees’ compensation		10			45
Auditing and legal		51			65
Custodian		4			12
Federal, state and local taxes		—	^†		196
Other		17			27
Total fees and expenses		5,486			21,923
Less waivers/reimbursement of fees and expenses:
Investment advisory services waivers		—			—
Miscellaneous fee reimbursement		—			—
Total waivers/reimbursement of fees and expenses		—			—
Total fees and expenses after waivers/reimbursement		5,486			21,923
Net investment income		13,449			81,421

Net realized (loss) gain and unrealized (depreciation) appreciation:
Net realized (loss) gain on:
Investments in unaffiliated issuers		(1,290	)		50
Futures contracts		—			77
		(1,290	)		127

Net unrealized (depreciation) appreciation on:
Investments in unaffiliated issuers		(9,928	)		(65,092	)
Futures contracts		(101	)		90
		(10,029	)		(65,002	)
Net realized (loss) gain and unrealized (depreciation) appreciation		(11,319	)		(64,875	)
Net increase in net assets resulting from operations	$	2,130		$	16,546

^*	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
^†	Amount less than one thousand.

See Notes to Financial Statements

52	American Funds Tax-Exempt Funds

(dollars in thousands)

The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York

$	578,491		$	266,356		$	77,256		$	7,354
	35,922			17,182			6,453			756
	30,693			14,323			5,146			574
	6,404			3,039			721			79
	4,429			1,474			433			43
	441			162			60			7
	1,298			487			110			89
	188			63			30			2
	117			75			95			62
	41			15			6			—	^†
	1,227			1,915			349			61
	108			83			21			11
	80,868			38,818			13,424			1,684

	49			5			—			—
	—			—			—			90
	49			5			—			90
	80,819			38,813			13,424			1,594
	497,672			227,543			63,832			5,760

	24,829			48,693			7,138			132

	(3,792	)		(131	)		—			—
	21,037			48,562			7,138			132

	(264,737	)		(37,519	)		(32,836	)		(4,196	)
	1,869			(103	)		—			—
	(262,868	)		(37,622	)		(32,836	)		(4,196	)
	(241,831	)		10,940			(25,698	)		(4,064	)
$	255,841		$	238,483		$	38,134		$	1,696

American Funds Tax-Exempt Funds

Statements of changes in net assets

	American Funds Short-Term Tax-Exempt Bond Fund						Limited Term Tax-Exempt Bond Fund of America						The Tax-Exempt Bond Fund of America
	Year ended July 31						Year ended July 31						Year ended July 31
	2018			2017			2018			2017			2018			2017
Operations:
Net investment income	$	13,449		$	10,022		$	81,421		$	78,699		$	497,672		$	436,115
Net realized (loss) gain		(1,290	)		(558	)		127			(294	)		21,037			(11,218	)
Net unrealized depreciation		(10,029	)		(3,763	)		(65,002	)		(66,254	)		(262,868	)		(434,509	)
Net increase (decrease) in net assets resulting from operations		2,130			5,701			16,546			12,151			255,841			(9,612	)

Dividends paid or accrued to shareholders from net investment income		(13,421	)		(9,997	)		(81,415	)		(78,498	)		(496,829	)		(432,228	)

Net capital share transactions		(9,712	)		222,373			167,187			179,550			4,798,328			1,095,007

Total (decrease) increase in net assets		(21,003	)		218,077			102,318			113,203			4,557,340			653,167

Net assets:
Beginning of year		999,190			781,113			3,862,993			3,749,790			14,470,722			13,817,555
End of year	$	978,187		$	999,190		$	3,965,311		$	3,862,993		$	19,028,062		$	14,470,722
Undistributed net investment income	$	40		$	70		$	328		$	308		$	9,749		$	11,972

See Notes to Financial Statements

54	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund						The Tax-Exempt Fund of California						American Funds Tax-Exempt Fund of New York
Year ended July 31						Year ended July 31						Year ended July 31
	2018			2017			2018			2017			2018			2017
$	227,543		$	198,585		$	63,832		$	62,351		$	5,760		$	5,206
	48,562			29,859			7,138			165			132			(257	)
	(37,622	)		(188,457	)		(32,836	)		(71,163	)		(4,196	)		(6,080	)

	238,483			39,987			38,134			(8,647	)		1,696			(1,131	)

	(224,199	)		(193,595	)		(63,679	)		(61,637	)		(5,766	)		(5,169	)

	963,626			574,599			157,339			122,984			31,122			8,850
	977,910			420,991			131,794			52,700			27,052			2,550

	5,513,506			5,092,515			2,123,568			2,070,868			211,449			208,899
$	6,491,416		$	5,513,506		$	2,255,362		$	2,123,568		$	238,501		$	211,449
$	11,973		$	12,036		$	1,779		$	1,795		$	116		$	79

American Funds Tax-Exempt Funds

Notes to financial statements

1. Organization

American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California, which is presently the only series of The American Funds Tax-Exempt Series II, and American Funds Tax-Exempt Fund of New York (each a “fund” or collectively, the “funds”), are registered under the Investment Company Act of 1940 as open-end, diversified management investment companies.

Each fund’s investment objectives are as follows:

American Funds Short-Term Tax-Exempt Bond Fund — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

Limited Term Tax-Exempt Bond Fund of America — Seeks to provide current income exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital.

The Tax-Exempt Bond Fund of America — Seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital.

American High-Income Municipal Bond Fund — Seeks to provide a high level of current income exempt from regular federal income tax.

The Tax-Exempt Fund of California — Seeks to provide a high level of current income exempt from regular federal and California state income taxes. Its secondary objective is preservation of capital.

American Funds Tax-Exempt Fund of New York — Seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes. Its secondary objective is preservation of capital.

American Funds Short-Term Tax-Exempt Bond Fund has six share classes consisting of five retail share classes (Classes A and T, as well as three F share classes, F-1, F-2 and F-3) and one share class that is only available to the American Funds Portfolio Series (Class R-6). Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund each have seven share classes consisting of six retail share classes (Classes A, C and T, as well as three F share classes, F-1, F-2 and F-3) and one share class that is only available to the American Funds Portfolio Series (Class R-6). The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York each have six retail share classes (Classes A, C and T, as well as three F share classes, F-1, F-2 and F-3). Some share classes are only available to limited categories of investors. The funds’ share classes are described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Class A	Up to 2.50% for American Funds Short-Term Tax-Exempt Bond Fund and Limited Term Tax-Exempt Bond Fund of America; up to 3.75% for all other funds	None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge)	None
Class C*	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class T^†	Up to 2.50%	None	None
Classes F-1, F-2 and F-3	None	None	None
Class R-6	None	None	None

*	Class C shares are not available for purchase in Limited Term Tax-Exempt Bond Fund of America.
^†	Class T shares are not available for purchase.

Holders of all share classes of each fund have equal pro rata rights to the assets, dividends and liquidation proceeds of each fund held. Each share class of each fund 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, transfer agent and administrative 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 share class of each fund.

56	American Funds Tax-Exempt Funds

2. Significant accounting policies

Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the funds’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income — Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. 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) are allocated daily among the various share classes of each fund based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes of each fund based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class of each fund.

Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of each fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on each fund’s ex-dividend date.

3. Valuation

Capital Research and Management Company (“CRMC”), the funds’ investment adviser, values each fund’s investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs — The funds’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the following inputs: benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data. For certain distressed securities, valuations may include cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts.

When the funds’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

Exchange-traded futures are generally valued at the official settlement price of, or the last reported sale price on, the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued or, lacking any sales, at the last available bid price. Prices for each future are taken from the exchange or market on which the security trades.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the funds’ investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of each fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as 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. In

American Funds Tax-Exempt Funds

addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — Each fund’s board of trustees has delegated authority to the funds’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the boards of trustees. Each fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The funds’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The funds’ investment adviser classifies each fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the funds’ valuation levels as of July 31, 2018 (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Texas	$	—	$	101,755	$	—	$	101,755
Illinois		—		100,450		—		100,450
New York		—		81,563		—		81,563
California		—		60,060		—		60,060
Wisconsin		—		41,701		—		41,701
Pennsylvania		—		31,589		—		31,589
Florida		—		30,290		—		30,290
Washington		—		30,035		—		30,035
New Jersey		—		28,662		—		28,662
Massachusetts		—		28,476		—		28,476
Other		—		343,672		—		343,672
Short-term securities		—		101,550		—		101,550
Total	$	—	$	979,803	$	—	$	979,803

	Other investments*
	Level 1			Level 2		Level 3		Total
Liabilities:
Unrealized depreciation on futures contracts	$	(101	)	$	—	$	—	$	(101	)

58	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Illinois	$	—	$	513,642	$	—	$	513,642
Texas		—		369,379		—		369,379
California		—		308,753		—		308,753
New York		—		289,548		—		289,548
Pennsylvania		—		209,659		—		209,659
Florida		—		194,741		—		194,741
Michigan		—		150,644		—		150,644
New Jersey		—		132,360		—		132,360
Wisconsin		—		121,863		—		121,863
Massachusetts		—		109,981		—		109,981
Other		—		1,257,805		—		1,257,805
Short-term securities		—		270,509		—		270,509
Total	$	—	$	3,928,884	$	—	$	3,928,884

	Other investments*
	Level 1		Level 2		Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	90	$	—	$	—	$	90

The Tax-Exempt Bond Fund of America

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Illinois	$	—	$	2,517,518	$	—	$	2,517,518
Texas		—		1,877,572		—		1,877,572
California		—		1,417,266		—		1,417,266
New York		—		1,351,830		—		1,351,830
Florida		—		1,227,942		6,551		1,234,493
Pennsylvania		—		798,191		—		798,191
Michigan		—		679,053		—		679,053
Washington		—		542,077		—		542,077
Virginia		—		531,897		—		531,897
Ohio		—		452,616		—		452,616
Other		—		6,452,500		—		6,452,500
Short-term securities		—		1,161,669		—		1,161,669
Total	$	—	$	19,010,131	$	6,551	$	19,016,682

	Other investments*
	Level 1			Level 2		Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	1,942		$	—	$	—	$	1,942
Liabilities:
Unrealized depreciation on futures contracts		(73	)		—		—		(73	)
Total	$	1,869		$	—	$	—	$	1,869

See end of tables for footnote.

American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Illinois	$	—	$	951,635	$	—	$	951,635
Texas		—		467,564		—		467,564
California		—		368,186		—		368,186
Florida		—		357,580		6,636		364,216
Pennsylvania		—		357,874		—		357,874
Colorado		—		316,863		—		316,863
New Jersey		—		257,260		—		257,260
Ohio		—		247,105		—		247,105
New York		—		244,951		—		244,951
Puerto Rico		—		189,137		—		189,137
Other		—		2,293,065		—		2,293,065
Short-term securities		—		387,613		—		387,613
Total	$	—	$	6,438,833	$	6,636	$	6,445,469

	Other investments*
	Level 1			Level 2		Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	270		$	—	$	—	$	270
Liabilities:
Unrealized depreciation on futures contracts		(373	)		—		—		(373	)
Total	$	(103	)	$	—	$	—	$	(103	)

*	Futures contracts are not included in the investment portfolio.

The Tax-Exempt Fund of California

At July 31, 2018, all of the fund’s investment securities were classified as Level 2.

American Funds Tax-Exempt Fund of New York

At July 31, 2018, all of the fund’s investment securities were classified as Level 2.

4. Risk factors

Investing in each fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the securities held by the funds may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks — The prices of, and the income generated by, securities held by the funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in municipal securities — The yield and/or value of the funds’ investments in municipal securities may be adversely affected by events tied to the municipal securities markets, which can be very volatile and significantly impacted by unfavorable legislative or political developments and negative changes in the financial conditions of municipal securities issuers and the economy. To the extent the funds invest in obligations of a municipal issuer, the volatility, credit quality and performance of the funds may be adversely impacted by local political and economic conditions of the issuer. For example, a credit rating downgrade, bond default or bankruptcy involving an issuer within a particular state or territory could affect the market values and marketability of many or all municipal obligations of that state or territory. Income from municipal securities held by the funds could also be declared taxable because of changes in tax laws or interpretations by taxing authorities or as a result of noncompliant conduct of a municipal issuer. Additionally, the relative amount of publicly available information about municipal securities is generally less than that for corporate securities.

60	American Funds Tax-Exempt Funds

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the funds may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the funds having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the funds invest. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

Liquidity risk — Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold or converted to cash without significantly impacting the value of the holdings. Liquidity risk may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs.

Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by the funds could cause the values of these securities to decline.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in similar municipal bonds — Investing significantly in municipal obligations of multiple issuers in the same state or backed by revenues of similar types of projects or industries may make the funds more susceptible to certain economic, political or regulatory occurrences. As a result, the potential for fluctuations in the funds’ share price may increase.

Risks of investing in municipal bonds of issuers within the state of California — Because The Tax-Exempt Fund of California invests primarily in securities of issuers within the state of California, the fund is more susceptible to factors adversely affecting issuers of California securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, in the past, California voters have passed amendments to the state’s constitution and other measures that limit the taxing and spending authority of California governmental entities, and future voter initiatives may adversely affect California municipal bonds.

Risks of investing in municipal bonds of issuers within the state of New York — Because American Funds Tax-Exempt Fund of New York invests primarily in securities of issuers within the state of New York, the fund is more susceptible to factors adversely affecting issuers of New York securities than a comparable municipal bond mutual fund that does not concentrate its investments in a single state. For example, such factors may include political policy changes, tax base erosion, state constitutional limits on tax increases, budget deficits and other financial or economic difficulties, and changes in the credit ratings assigned to New York’s municipal issuers. New York’s economy and finances may be especially vulnerable to changes in the performance of the financial services sector, which historically has been volatile.

Management — The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the funds to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

American Funds Tax-Exempt Funds

5. Certain investment techniques

Futures contracts — American Funds Short-Term Tax Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund have entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.

Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, each fund is required to deposit with a futures broker, or FCM, in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as restricted cash pledged for futures contracts in the fund’s statement of assets and liabilities.

On a daily basis, each fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to each fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities. Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations. The average month-end notional amount of futures contracts while held by American Funds Short-Term Tax Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund was $49,000,000, $64,300,000, $587,629,000 and $97,917,000, respectively.

The following tables present the financial statement impacts resulting from the funds’ use of futures contracts as of, or for the year ended, July 31, 2018 (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation*

—

Unrealized depreciation*

101

Net realized gain

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized gain on futures contracts

—

Net unrealized depreciation on futures contracts

(101

)

Limited Term Tax-Exempt Bond Fund of America

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation*

Unrealized depreciation*

—

Net realized gain

Net unrealized appreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized gain on futures contracts

Net unrealized appreciation on futures contracts

62	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation*

1,942

Unrealized depreciation*

Net realized loss

Net unrealized appreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized loss on futures contracts

(3,792

)

Net unrealized appreciation on futures contracts

1,869

American High-Income Municipal Bond Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation*

270

Unrealized depreciation*

373

Net realized loss

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized loss on futures contracts

(131

)

Net unrealized depreciation on futures contracts

(103

)

*	Includes cumulative appreciation/depreciation on futures contracts as reported in the applicable table following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities.

Collateral — American Funds Short-Term Tax Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America and American High-Income Municipal Bond Fund participate in a collateral program due to each fund’s use of future delivery contracts that calls for each fund to either receive or pledge highly liquid assets, such as cash or U.S. Treasury bills, as collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by each fund, if any, is disclosed in each fund’s investment portfolio, and cash collateral pledged by each fund, if any, is held in a segregated account with each fund’s custodian, which is reflected as pledged cash in each fund’s statement of assets and liabilities.

6. Taxation and distributions

Federal income taxation — Each 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 tax-exempt income and net capital gains each year. Generally, income earned by each fund is exempt from federal income taxes; however, each fund may earn taxable income from certain investments. The funds are not subject to income taxes to the extent such taxable income and net capital gains are distributed. To the extent the funds recognize taxable income, the funds may pay tax on such income in lieu of making distributions; amounts paid are included within federal, state and local taxes on the funds’ statements of operations.

As of and during the period ended July 31, 2018, none of the funds had a liability for any unrecognized tax benefits. Each fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statements of operations. During the period, none of the funds incurred any significant interest or penalties.

Each fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

Distributions — Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities

American Funds Tax-Exempt Funds

within 30 days of purchase; deferred expenses; cost of investments sold; net capital losses; amortization of premiums and discounts and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after July 31, 2011, (August 31, 2011, for The Tax-Exempt Bond Fund of America and The Tax-Exempt Fund of California) may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

Additional tax basis disclosures for each fund as of July 31, 2018, were as follows (dollars in thousands):

	American Funds Short-Term Tax-Exempt Bond Fund			Limited Term Tax-Exempt Bond Fund of America			The Tax-Exempt Bond Fund of America			American High-Income Municipal Bond Fund			The Tax-Exempt Fund of California			American Funds Tax-Exempt Fund of New York
Undistributed tax-exempt income	$	66		$	571		$	3,310		$	3,556		$	868		$	127
Post-October capital loss deferral*		—			—			(6,970	)		—			(408	)		—
Capital loss carryforward^†:
No expiration		(3,334	)		(249	)		—			—			—			(79	)
Expiring 2019		—			—			—			(24,408	)		—			—
		(3,334	)		(249	)		—			(24,408	)		—			(79	)
Capital loss carryforward utilized		—			368			16,769			40,880			6,765			178
Capital loss carryforward expired		—			—			5,830			8,913			23,580			—
Gross unrealized appreciation on investments		1,551			36,974			397,238			207,404			67,388			5,014
Gross unrealized depreciation on investments		(6,278	)		(24,459	)		(131,333	)		(59,306	)		(19,981	)		(1,668	)
Net unrealized (depreciation) appreciation on investments		(4,727	)		12,515			265,905			148,098			47,407			3,346
Cost of investments		984,429			3,916,459			18,752,646			6,297,268			2,206,167			235,024
Reclassification to (from) undistributed net investment income from (to) accumulated net realized loss		(55	)		(127	)		(1,830	)		(387	)		(113	)		(1	)
Reclassification to (from) undistributed net investment income from (to) capital paid in on shares of beneficial interest		(3	)		141			(1,236	)		(3,020	)		(56	)		44
Reclassification to (from) capital paid in on shares of beneficial interest from (to) accumulated net realized loss		—			—			(5,830	)		(8,913	)		(23,580	)		—

^*	This deferral is considered incurred in the subsequent year.
^†	Capital loss carryforwards will be used to offset any capital gains realized by the funds in future years. The funds will not make distributions from capital gains while a capital loss carryforward remains.

Tax-exempt income distributions paid or accrued from each fund were characterized for tax purposes as follows (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	10,014		$	8,379
Class T¹		—	²		—	²
Class F-1		93			110
Class F-2		711			836
Class F-3³		716			209
Class R-6⁴		1,887			463
Total	$	13,421		$	9,997

64	American Funds Tax-Exempt Funds

Limited Term Tax-Exempt Bond Fund of America

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	61,392		$	61,657
Class B⁵					1
Class C		288			367
Class T¹		—	²		—	²
Class F-1		1,510			1,696
Class F-2		7,833			7,195
Class F-3³		3,549			738
Class R-6		6,843			6,844
Total	$	81,415		$	78,498

The Tax-Exempt Bond Fund of America

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	290,885		$	293,044
Class B⁵					28
Class C		9,684			11,413
Class T¹		—	²		—	²
Class F-1		12,057			14,529
Class F-2		61,316			93,190
Class F-3³		108,231			6,591
Class R-6		14,656			13,433
Total	$	496,829		$	432,228

American High-Income Municipal Bond Fund

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	141,994		$	131,221
Class B⁵					15
Class C		6,687			7,065
Class T¹		—	²		—	²
Class F-1		7,964			8,811
Class F-2		26,981			29,151
Class F-3³		22,072			4,691
Class R-6		18,501			12,641
Total	$	224,199		$	193,595

The Tax-Exempt Fund of California

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	48,366		$	49,273
Class B⁵					2
Class C		1,638			2,020
Class T¹		—	²		—	²
Class F-1		2,065			2,227
Class F-2		6,945			7,241
Class F-3³		4,665			874
Total	$	63,679		$	61,637

See end of tables for footnotes.

American Funds Tax-Exempt Funds

American Funds Tax-Exempt Fund of New York

Share class	Year ended July 31, 2018			Year ended July 31, 2017
Class A	$	4,525		$	4,093
Class B⁵					—	²
Class C		209			233
Class T¹		—	²		—	²
Class F-1		68			57
Class F-2		374			626
Class F-3³		590			160
Total	$	5,766		$	5,169

¹	Class T shares began investment operations on April 7, 2017.
²	Amount less than one thousand.
³	Class F-3 shares began investment operations on January 27, 2017.
⁴	Class R-6 shares began investment operations on March 17, 2017.
⁵	Class B shares were fully liquidated on May 5, 2017.

7. Fees and transactions with related parties

CRMC, the funds’ investment adviser, is the parent company of American Funds Distributors,^® Inc. (“AFD”), the principal underwriter of the funds’ shares, and American Funds Service Company^® (“AFS”), the funds’ transfer agent. CRMC, AFD and AFS are considered related parties to each fund.

Investment advisory services — Each fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as average net asset levels increase. The agreement for each fund, except American Funds Short-Term Tax-Exempt Bond Fund, also provides for monthly fees accrued daily based on a series of decreasing rates on each fund’s monthly gross income.

The range of rates, net asset levels, gross income levels and annualized rates of average net assets for each fund are as follows:

	Rates						Net asset level (in billions)				Rates						Monthly gross income				For the year ended
Fund	Beginning with			Ending with			Up to		In excess of		Beginning with			Ending with			Up to		In excess of		July 31, 2018
American Funds Short-Term Tax-Exempt Bond Fund		.390	%		.290	%	$	.20	$	1.2												.358	%
Limited Term Tax-Exempt Bond Fund of America		.300			.150			.06		1.0		3.00	%		2.50	%	$	3,333,333	$	3,333,333		.229
The Tax-Exempt Bond Fund of America		.300			.110			.06		15.0		3.00			2.00			3,333,333		8,333,333		.213
American High-Income Municipal Bond Fund		.300			.140			.06		6.0		3.00			2.50			3,333,333		3,333,333		.284
The Tax-Exempt Fund of California		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.293
American Funds Tax-Exempt Fund of New York		.300			.180			.06		1.0		3.00			2.50			3,333,333		3,333,333		.330

Investment advisory services waivers — On March 5, 2018, the board of trustees approved an amended investment advisory and service agreement effective May 1, 2018, decreasing the annual rates to 0.115% and 0.110% on average daily net assets in excess of $15 billion and $21 billion, respectively, for The Tax-Exempt Bond Fund of America and to 0.140% on average daily net assets in excess of $6 billion for American High-Income Municipal Bond Fund. CRMC voluntarily reduced investment advisory services fees to the approved rates on both funds in advance of the effective date. For the year ended July 31, 2018, total investment advisory services fees waived by CRMC were $49,000 for The Tax- Exempt Bond Fund of America and $5,000 for the American High-Income Municipal Bond Fund. The amounts waived had no impact on either fund’s annualized rate of average net assets.

66	American Funds Tax-Exempt Funds

Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class of each fund. The principal class-specific fees and expenses are described below:

Distribution services — Each fund has plans of distribution for all share classes, except Class F-2, F-3 and R-6 shares, if applicable. Under the plans, each fund’s board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments based on an annualized percentage of average daily net assets. In some cases, the boards of trustees have limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use the allotted percentage 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 to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

	American Funds Short-Term Tax-Exempt Bond Fund						Limited Term Tax-Exempt Bond Fund of America						The Tax-Exempt Bond Fund of America
Share class	Currently approved limits			Plan limits			Currently approved limits			Plan limits			Currently approved limits			Plan limits
Class A		0.15	%		0.15	%		0.30	%		0.30	%		0.25	%		0.25	%
Class C	Not applicable			Not applicable				1.00			1.00			1.00			1.00
Classes T and F-1		0.25			0.50			0.25			0.50			0.25			0.50

	American High-Income Municipal Bond Fund						The Tax-Exempt Fund of California						American Funds Tax-Exempt Fund of New York
Share class	Currently approved limits			Plan limits			Currently approved limits			Plan limits			Currently approved limits			Plan limits
Class A		0.30	%		0.30	%		0.25	%		0.25	%		0.25	%		0.30	%
Class C		1.00			1.00			1.00			1.00			1.00			1.00
Classes T and F-1		0.25			0.50			0.25			0.50			0.25			0.50

For Class A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. This share class of each fund reimburses AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit is not exceeded. As of July 31, 2018, unreimbursed expenses subject to reimbursement for Class A shares of each fund were as follows (dollars in thousands):

Fund	Class A
American Funds Short-Term Tax-Exempt Bond Fund	$	1,206
Limited-Term Tax-Exempt Bond Fund of America		120
The Tax-Exempt Bond Fund of America		8,137
American High-Income Municipal Bond Fund		—
The Tax-Exempt Fund of California		1,591
American Funds Tax-Exempt Fund of New York		76

Transfer agent services — Each fund has a shareholder services agreement with AFS under which each fund compensates AFS for providing transfer agent services to each of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, each fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of its respective fund shareholders.

Administrative services — Each fund has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to each of the funds’ Class A, C, T, F and R shares. Administrative services are provided by CRMC to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on each fund and market developments that impact each fund’s investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to each fund’s shareholders. The agreement between each fund and the investment adviser provides each fund the ability to charge an administrative services fee of 0.05% of average daily net assets for all share classes. Currently Class A shares of each fund pay an annual fee of 0.01% of average daily net assets (which could be increased as noted above) and Class C, T, F and R shares of each fund pay an annual fee of 0.05% of their respective average daily net assets.

American Funds Tax-Exempt Funds

Miscellaneous fee reimbursement — CRMC is currently reimbursing a portion of miscellaneous fees and expenses for American Funds Tax-Exempt Fund of New York. Miscellaneous expenses exclude investment advisory services and distribution services fees. For the year ended July 31, 2018, total expenses reimbursed by CRMC were $90,000.

For the year ended July 31, 2018, class-specific expenses under the agreements for each fund were as follows (dollars in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

Share class	Distribution services	Transfer agent services		Administrative services
Class A	$1,129	$259		$75
Class T	—	—	*	—	*
Class F-1	21	10		4
Class F-2	Not applicable	56		26
Class F-3	Not applicable	1		25
Class R-6	Not applicable	—	*	64
Total class-specific expenses	$1,150	$326		$194

Limited Term Tax-Exempt Bond Fund of America

Share class	Distribution services	Transfer agent services		Administrative services
Class A	$9,223	$1,082		$307
Class C	230	8		12
Class T	—	—	*	—	*
Class F-1	196	91		39
Class F-2	Not applicable	403		180
Class F-3	Not applicable	4		77
Class R-6	Not applicable	—	*	149
Total class-specific expenses	$9,649	$1,588		$764

The Tax-Exempt Bond Fund of America

Share class	Distribution services	Transfer agent services		Administrative services
Class A	$25,045	$3,464		$1,002
Class C	4,577	161		229
Class T	—	—	*	—	*
Class F-1	1,071	498		216
Class F-2	Not applicable	2,187		1,008
Class F-3	Not applicable	94		1,741
Class R-6	Not applicable	—	*	233
Total class-specific expenses	$30,693	$6,404		$4,429

American High-Income Municipal Bond Fund

	Distribution	Transfer agent		Administrative
Share class	services	services		services
Class A	$11,478	$1,889		$388
Class C	2,292	114		114
Class T	—	—	*	—	*
Class F-1	553	257		111
Class F-2	Not applicable	758		350
Class F-3	Not applicable	21		278
Class R-6	Not applicable	—	*	233
Total class-specific expenses	$14,323	$3,039		$1,474

The Tax-Exempt Fund of California

	Distribution	Transfer agent		Administrative
Share class	services	services		services
Class A	$4,180	$371		$167
Class C	779	18		39
Class T	—	—	*	—	*
Class F-1	187	81		37
Class F-2	Not applicable	250		115
Class F-3	Not applicable	1		75
Total class-specific expenses	$5,146	$721		$433

American Funds Tax-Exempt Fund of New York

	Distribution	Transfer agent		Administrative
Share class	services	services		services
Class A	$448	$58		$18
Class C	120	4		6
Class T	—	—	*	—	*
Class F-1	6	3		1
Class F-2	Not applicable	14		7
Class F-3	Not applicable	—	*	11
Total class-specific expenses	$574	$79		$43


*	Amount less than one thousand.

68	American Funds Tax-Exempt Funds

Trustees’ deferred compensation — 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 each fund, are treated as if invested in shares of the funds or other American Funds. These amounts represent general, unsecured liabilities of each fund and vary according to the total returns of the selected funds. Trustees’ compensation in the funds’ statements of operations reflects the current fees (either paid in cash or deferred) and a net increase in the value of the following deferred amounts (dollars in thousands):

Fund	Current fees		Increase in value of deferred amounts			Total trustees’ compensation
American Funds Short-Term Tax-Exempt Bond Fund	$	7	$	3		$	10
Limited Term Tax-Exempt Bond Fund of America	32		13			45
The Tax-Exempt Bond Fund of America	117		71			188
American High-Income Municipal Bond Fund	53		10			63
The Tax-Exempt Fund of California	17		13			30
American Funds Tax-Exempt Fund of New York	2		—		*	2


*	Amount less than one thousand.

Affiliated officers and trustees — Officers and certain trustees of the funds are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the funds.

Security transactions with related funds — Each fund may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by each fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act. During the year ended July 31, 2018, the funds engaged in such purchase and sale transactions with related funds as follows (dollars in thousands):

Fund	Purchases		Sales
American Funds Short-Term Tax-Exempt Bond Fund	$	7,511	$	20,844
Limited Term Tax-Exempt Bond Fund of America		6,081		14,951
The Tax-Exempt Bond Fund of America		61,099		5,426
American High-Income Municipal Bond Fund		34,577		14,131
The Tax-Exempt Fund of California		10,480		—
American Funds Tax-Exempt Fund of New York		921		—

Interfund lending — Pursuant to an exemptive order issued by the SEC, the funds, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The funds did not lend or borrow cash through the interfund lending program at any time during the year ended July 31, 2018.

8. Committed line of credit

American High-Income Municipal Bond Fund participates with other funds managed by CRMC (or funds managed by certain affiliates of CRMC) in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to support shareholder redemptions. The fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in the fund’s statement of operations. The fund did not borrow on this line of credit at any time during the year ended July 31, 2018.

American Funds Tax-Exempt Funds

9. Capital share transactions

Capital share transactions in the funds were as follows (dollars and shares in thousands):

American Funds Short-Term Tax-Exempt Bond Fund

					Reinvestments of										Net increase
	Sales¹				dividends				Repurchases¹						(decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	278,215		27,610	$	9,626		957	$	(266,056	)		(26,429	)	$	21,785			2,138
Class T		—		—		—		—		—			—			—			—
Class F-1		2,640		262		92		9		(5,104	)		(507	)		(2,372	)		(236	)
Class F-2		32,700		3,244		702		70		(26,794	)		(2,661	)		6,608			653
Class F-3		47,782		4,729		533		53		(80,218	)		(7,922	)		(31,903	)		(3,140	)
Class R-6		16,157		1,599		1,887		187		(21,874	)		(2,174	)		(3,830	)		(388	)
Total net increase (decrease)	$	377,494		37,444	$	12,840		1,276	$	(400,046	)		(39,693	)	$	(9,712	)		(973	)

Year ended July 31, 2017

Class A	$	353,021		34,954	$	7,958		786	$	(305,749	)		(30,279	)	$	55,230			5,461
Class T²		10		1		—		—		—			—			10			1
Class F-1		4,274		423		109		11		(8,002	)		(792	)		(3,619	)		(358	)
Class F-2		67,272		6,658		696		69		(100,908	)		(9,989	)		(32,940	)		(3,262	)
Class F-3³		88,654		8,765		107		11		(11,612	)		(1,145	)		77,149			7,631
Class R-6⁴		128,242		12,674		463		45		(2,162	)		(213	)		126,543			12,506
Total net increase (decrease)	$	641,473		63,475	$	9,333		922	$	(428,433	)		(42,418	)	$	222,373			21,979

Limited Term Tax-Exempt Bond Fund of America

					Reinvestments of											Net increase
	Sales¹				dividends					Repurchases¹						(decrease)
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	707,137		45,220	$	58,703		3,763		$	(696,821	)		(44,622	)	$	69,019			4,361
Class C		4,357		279		280		18			(9,044	)		(579	)		(4,407	)		(282	)
Class T		—		—		—		—			—			—			—			—
Class F-1		28,021		1,791		1,451		92			(47,647	)		(3,055	)		(18,175	)		(1,172	)
Class F-2		247,425		15,810		6,716		431			(203,930	)		(13,081	)		50,211			3,160
Class F-3		121,425		7,770		2,877		185			(46,337	)		(2,972	)		77,965			4,983
Class R-6		38,084		2,428		6,843		439			(52,353	)		(3,359	)		(7,426	)		(492	)
Total net increase (decrease)	$	1,146,449		73,298	$	76,870		4,928		$	(1,056,132	)		(67,668	)	$	167,187			10,558

Year ended July 31, 2017

Class A	$	819,485		52,126	$	58,446		3,716		$	(841,769	)		(53,692	)	$	36,162			2,150
Class B⁵		12		1		1		—	⁶		(285	)		(18	)		(272	)		(17	)
Class C		9,630		614		356		22			(14,774	)		(941	)		(4,788	)		(305	)
Class T²		10		1		—		—			—			—			10			1
Class F-1		33,107		2,108		1,634		104			(39,802	)		(2,536	)		(5,061	)		(324	)
Class F-2		303,074		19,263		6,395		407			(285,439	)		(18,211	)		24,030			1,459
Class F-3³		119,294		7,604		564		36			(8,432	)		(536	)		111,426			7,104
Class R-6		57,602		3,639		6,843		435			(46,402	)		(2,970	)		18,043			1,104
Total net increase (decrease)	$	1,342,214		85,356	$	74,239		4,720		$	(1,236,903	)		(78,904	)	$	179,550			11,172

70	American Funds Tax-Exempt Funds

The Tax-Exempt Bond Fund of America

					Reinvestments of										Net increase
	Sales¹				dividends				Repurchases¹						(decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	1,681,309		130,015	$	272,626		21,145	$	(1,405,277	)		(108,925	)	$	548,658			42,235
Class C		80,078		6,193		9,249		717		(125,594	)		(9,732	)		(36,267	)		(2,822	)
Class T		—		—		—		—		—			—			—			—
Class F-1		104,060		8,060		11,599		899		(201,331	)		(15,621	)		(85,672	)		(6,662	)
Class F-2		993,761		77,009		58,043		4,502		(756,576	)		(58,582	)		295,228			22,929
Class F-3		4,363,042		337,721		106,056		8,255		(569,494	)		(44,325	)		3,899,604			301,651
Class R-6		183,540		14,204		14,656		1,138		(21,419	)		(1,668	)		176,777			13,674
Total net increase (decrease)	$	7,405,790		573,202	$	472,229		36,656	$	(3,079,691	)		(238,853	)	$	4,798,328			371,005

Year ended July 31, 2017

Class A	$	1,801,266		138,682	$	272,050		21,023	$	(1,585,561	)		(123,176	)	$	487,755			36,529
Class B⁵		13		1		26		2		(3,153	)		(243	)		(3,114	)		(240	)
Class C		109,851		8,427		10,867		840		(146,591	)		(11,359	)		(25,873	)		(2,092	)
Class T²		10		1		—		—		—			—			10			1
Class F-1		150,827		11,683		14,001		1,082		(204,796	)		(15,883	)		(39,968	)		(3,118	)
Class F-2		1,352,620		104,710		88,843		6,868		(2,321,994	)		(179,479	)		(880,531	)		(67,901	)
Class F-3³		1,572,043		121,144		6,300		486		(24,708	)		(1,907	)		1,553,635			119,723
Class R-6		130,180		10,032		13,380		1,034		(140,467	)		(10,934	)		3,093			132
Total net increase (decrease)	$	5,116,810		394,680	$	405,467		31,335	$	(4,427,270	)		(342,981	)	$	1,095,007			83,034

American High-Income Municipal Bond Fund

					Reinvestments of										Net increase
	Sales¹				dividends				Repurchases¹						(decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	782,611		49,463	$	133,367		8,440	$	(508,503	)		(32,164	)	$	407,475			25,739
Class C		47,927		3,029		6,316		400		(57,636	)		(3,644	)		(3,393	)		(215	)
Class T		—		—		—		—		—			—			—			—
Class F-1		78,860		4,990		7,756		490		(113,570	)		(7,178	)		(26,954	)		(1,698	)
Class F-2		441,075		27,866		24,137		1,528		(272,343	)		(17,228	)		192,869			12,166
Class F-3		288,409		18,214		19,098		1,209		(83,527	)		(5,278	)		223,980			14,145
Class R-6		172,242		10,880		18,502		1,171		(21,095	)		(1,341	)		169,649			10,710
Total net increase (decrease)	$	1,811,124		114,442	$	209,176		13,238	$	(1,056,674	)		(66,833	)	$	963,626			60,847

Year ended July 31, 2017

Class A	$	815,139		52,111	$	121,598		7,783	$	(703,450	)		(45,320	)	$	233,287			14,574
Class B⁵		40		3		14		1		(1,280	)		(82	)		(1,226	)		(78	)
Class C		52,474		3,341		6,638		425		(68,253	)		(4,390	)		(9,141	)		(624	)
Class T²		10		1		—		—		—			—			10			1
Class F-1		93,087		5,955		8,578		549		(140,908	)		(9,031	)		(39,243	)		(2,527	)
Class F-2		466,323		29,942		25,815		1,653		(634,923	)		(40,962	)		(142,785	)		(9,367	)
Class F-3³		429,111		27,652		3,948		252		(17,526	)		(1,122	)		415,533			26,782
Class R-6		105,522		6,754		12,642		810		—			—			118,164			7,564
Total net increase (decrease)	$	1,961,706		125,759	$	179,233		11,473	$	(1,566,340	)		(100,907	)	$	574,599			36,325

See end of tables for footnotes.

American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California

					Reinvestments of											Net increase
	Sales¹				dividends					Repurchases¹						(decrease)
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	259,065		14,726	$	43,350		2,472		$	(246,151	)		(14,019	)	$	56,264			3,179
Class C		14,343		815		1,554		89			(26,591	)		(1,515	)		(10,694	)		(611	)
Class T		—		—		—		—			—			—			—			—
Class F-1		27,505		1,567		1,914		109			(29,310	)		(1,670	)		109			6
Class F-2		112,357		6,393		6,168		352			(58,335	)		(3,326	)		60,190			3,419
Class F-3		67,902		3,867		3,891		222			(20,323	)		(1,158	)		51,470			2,931
Total net increase (decrease)	$	481,172		27,368	$	56,877		3,244		$	(380,710	)		(21,688	)	$	157,339			8,924

Year ended July 31, 2017

Class A	$	287,913		16,331	$	43,825		2,495		$	(311,489	)		(17,845	)	$	20,249			981
Class B⁵		10		1		2		—	⁶		(265	)		(15	)		(253	)		(14	)
Class C		23,294		1,313		1,914		109			(35,926	)		(2,050	)		(10,718	)		(628	)
Class T²		10		1		—		—			—			—			10			1
Class F-1		24,944		1,415		2,083		119			(31,372	)		(1,788	)		(4,345	)		(254	)
Class F-2		181,621		10,368		6,173		352			(192,817	)		(11,070	)		(5,023	)		(350	)
Class F-3³		124,040		7,103		689		39			(1,665	)		(95	)		123,064			7,047
Total net increase (decrease)	$	641,832		36,532	$	54,686		3,114		$	(573,534	)		(32,863	)	$	122,984			6,783

American Funds Tax-Exempt Fund of New York

					Reinvestments of												Net increase
	Sales¹				dividends						Repurchases¹						(decrease)
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Year ended July 31, 2018

Class A	$	38,634		3,605	$	3,569			334		$	(25,328	)		(2,369	)	$	16,875			1,570
Class C		2,347		219		196			19			(3,139	)		(293	)		(596	)		(55	)
Class T		—		—		—			—			—			—			—			—
Class F-1		1,142		106		57			5			(1,670	)		(157	)		(471	)		(46	)
Class F-2		9,234		861		358			33			(4,652	)		(435	)		4,940			459
Class F-3		12,329		1,152		433			40			(2,388	)		(225	)		10,374			967
Total net increase (decrease)	$	63,686		5,943	$	4,613			431		$	(37,177	)		(3,479	)	$	31,122			2,895


Year ended July 31, 2017

Class A	$	45,146		4,195	$	3,108			289		$	(35,915	)		(3,349	)	$	12,339			1,135
Class B⁵		11		1		—	⁶		—	⁶		(27	)		(3	)		(16	)		(2	)
Class C		2,541		234		218			20			(3,764	)		(353	)		(1,005	)		(99	)
Class T²		10		1		—			—			—			—			10			1
Class F-1		1,134		105		42			4			(708	)		(66	)		468			43
Class F-2		7,639		709		500			47			(26,967	)		(2,540	)		(18,828	)		(1,784	)
Class F-3³		18,851		1,771		119			11			(3,088	)		(286	)		15,882			1,496
Total net increase (decrease)	$	75,332		7,016	$	3,987			371		$	(70,469	)		(6,597	)	$	8,850			790


¹	Includes exchanges between share classes of the fund.
²	Class T shares began investment operations on April 7, 2017.
³	Class F-3 shares began investment operations on January 27, 2017.
⁴	Class R-6 shares began investment operations on March 17, 2017.
⁵	Class B shares were fully liquidated on May 5, 2017.
⁶	Amount less than one thousand.


72	American Funds Tax-Exempt Funds

10. Investment transactions

Each fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, during the year ended July 31, 2018, as follows (dollars in thousands):

Fund	Purchases		Sales
American Funds Short-Term Tax-Exempt Bond Fund	$	323,456	$	308,844
Limited Term Tax-Exempt Bond Fund of America		1,238,270		1,060,137
The Tax-Exempt Bond Fund of America		7,232,339		2,765,268
American High-Income Municipal Bond Fund		2,240,256		1,367,512
The Tax-Exempt Fund of California		443,510		291,211
American Funds Tax-Exempt Fund of New York		71,494		45,132

11. Ownership concentration

At July 31, 2018, CRMC held aggregate ownership of 14% of the outstanding shares of American Funds Tax-Exempt Fund of New York. The ownership represents the seed money invested in the fund when it began operations on November 1, 2010. In addition, American Funds Tax-Exempt Preservation Portfolio held 12% of the outstanding shares of American Funds Short-Term Tax-Exempt Bond Fund. CRMC is the investment adviser to all of the funds.

American Funds Tax-Exempt Funds

Financial highlights

American Funds Short-Term Tax-Exempt Bond Fund

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)			Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2018	$	10.15	$	.13	$	(.11	)	$	.02		$	(.13	)	$	10.04		.24	%	$	752			.58	%		1.33	%
7/31/2017		10.22		.12		(.07	)		.05			(.12	)		10.15		.46			739			.59			1.15
7/31/2016		10.17		.10		.05			.15			(.10	)		10.22		1.51			688			.59			1.02
7/31/2015		10.25		.11		(.08	)		.03			(.11	)		10.17		.26			653			.58			1.04
7/31/2014		10.21		.11		.04			.15			(.11	)		10.25		1.43			737			.58			1.04
Class T:
7/31/2018		10.15		.15		(.11	)		.04			(.15	)		10.04		.36	³		—	⁴		.47	³		1.44	³
7/31/2017^5,6		10.11		.04		.04			.08			(.04	)		10.15		.82	^3,7		—	⁴		.15	^3,7		.42	^3,7
Class F-1:
7/31/2018		10.15		.11		(.11	)		—	⁸		(.11	)		10.04		.02			7			.80			1.10
7/31/2017		10.22		.09		(.07	)		.02			(.09	)		10.15		.23			9			.82			.92
7/31/2016		10.17		.08		.05			.13			(.08	)		10.22		1.29			13			.81			.80
7/31/2015		10.25		.08		(.08	)		—	⁸		(.08	)		10.17		.05			9			.80			.83
7/31/2014		10.21		.08		.04			.12			(.08	)		10.25		1.19			14			.82			.80
Class F-2:
7/31/2018		10.15		.14		(.11	)		.03			(.14	)		10.04		.28			52			.54			1.37
7/31/2017		10.22		.12		(.07	)		.05			(.12	)		10.15		.49			47			.57			1.17
7/31/2016		10.17		.11		.05			.16			(.11	)		10.22		1.55			80			.56			1.06
7/31/2015		10.25		.11		(.08	)		.03			(.11	)		10.17		.29			64			.55			1.08
7/31/2014		10.21		.11		.04			.15			(.11	)		10.25		1.47			46			.54			1.07

74	American Funds Tax-Exempt Funds

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class F-3:
7/31/2018	$	10.15	$	.15	$	(.11	)	$	.04	$	(.15	)	$	10.04		.38	%	$	45		.44	%		1.45	%
7/31/2017^5,9		10.07		.07		.08			.15		(.07	)		10.15		1.49	⁷		77		.47	¹⁰		1.35	¹⁰
Class R-6:
7/31/2018		10.15		.15		(.11	)		.04		(.15	)		10.04		.38			122		.44			1.48
7/31/2017^5,11		10.09		.05		.06			.11		(.05	)		10.15		1.20	⁷		127		.17	⁷		.51	⁷

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	34%	26%	21%	38%	20%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁴	Amount less than $1 million.
⁵	Based on operations for a period that is less than a full year.
⁶	Class T shares began investment operations on April 7, 2017.
⁷	Not annualized.
⁸	Amount less than $.01.
⁹	Class F-3 shares began investment operations on January 27, 2017.
¹⁰	Annualized.
¹¹	Class R-6 shares began investment operations on March 17, 2017.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

Limited Term Tax-Exempt Bond Fund of America

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)			Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2018	$	15.77	$	.31	$	(.25	)	$	.06		$	(.31	)	$	15.52		.40	%	$	3,057			.59	%		2.00	%
7/31/2017		16.04		.32		(.27	)		.05			(.32	)		15.77		.34			3,038			.59			2.04
7/31/2016		15.92		.35		.12			.47			(.35	)		16.04		2.97			3,055			.59			2.17
7/31/2015		16.10		.38		(.18	)		.20			(.38	)		15.92		1.23			2,670			.57			2.36
7/31/2014		15.94		.40		.16			.56			(.40	)		16.10		3.56			2,615			.60			2.51
Class C:
7/31/2018		15.77		.20		(.25	)		(.05	)		(.20	)		15.52		(.34	)		20			1.34			1.26
7/31/2017		16.04		.20		(.27	)		(.07	)		(.20	)		15.77		(.40	)		25			1.33			1.30
7/31/2016		15.92		.23		.12			.35			(.23	)		16.04		2.20			30			1.33			1.43
7/31/2015		16.10		.26		(.18	)		.08			(.26	)		15.92		.47			30			1.33			1.60
7/31/2014		15.94		.28		.16			.44			(.28	)		16.10		2.80			38			1.34			1.78
Class T:
7/31/2018		15.77		.36		(.25	)		.11			(.36	)		15.52		.68	³		—	⁴		.33	³		2.26	³
7/31/2017^5,6		15.68		.12		.09			.21			(.12	)		15.77		1.32	^3,7		—	⁴		.10	^3,7		.74	^3,7
Class F-1:
7/31/2018		15.77		.30		(.25	)		.05			(.30	)		15.52		.33			64			.66			1.93
7/31/2017		16.04		.31		(.27	)		.04			(.31	)		15.77		.26			83			.67			1.96
7/31/2016		15.92		.33		.12			.45			(.33	)		16.04		2.88			90			.67			2.09
7/31/2015		16.10		.36		(.18	)		.18			(.36	)		15.92		1.13			84			.67			2.27
7/31/2014		15.94		.39		.16			.55			(.39	)		16.10		3.49			105			.67			2.45

76	American Funds Tax-Exempt Funds

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class F-2:
7/31/2018	$	15.77	$	.34	$	(.25	)	$	.09	$	(.34	)	$	15.52		.58	%	$	353		.41	%		2.18	%
7/31/2017		16.04		.35		(.27	)		.08		(.35	)		15.77		.51			309		.42			2.22
7/31/2016		15.92		.38		.12			.50		(.38	)		16.04		3.15			291		.41			2.34
7/31/2015		16.10		.40		(.18	)		.22		(.40	)		15.92		1.39			208		.41			2.52
7/31/2014		15.94		.43		.16			.59		(.43	)		16.10		3.75			183		.42			2.69
Class F-3:
7/31/2018		15.77		.36		(.25	)		.11		(.36	)		15.52		.70			187		.30			2.29
7/31/2017^5,8		15.59		.19		.18			.37		(.19	)		15.77		2.37	⁷		112		.30	⁹		2.36	⁹
Class R-6:
7/31/2018		15.77		.36		(.25	)		.11		(.36	)		15.52		.70			284		.30			2.29
7/31/2017		16.04		.37		(.27	)		.10		(.37	)		15.77		.63			296		.30			2.33
7/31/2016		15.92		.39		.12			.51		(.39	)		16.04		3.26			284		.30			2.45
7/31/2015		16.10		.42		(.18	)		.24		(.42	)		15.92		1.50			190		.31			2.62
7/31/2014		15.94		.45		.16			.61		(.45	)		16.10		3.86			133		.31			2.80

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	28%	27%	16%	19%	9%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁴	Amount less than $1 million.
⁵	Based on operations for a period that is less than a full year.
⁶	Class T shares began investment operations on April 7, 2017.
⁷	Not annualized.
⁸	Class F-3 shares began investment operations on January 27, 2017.
⁹	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

The Tax-Exempt Bond Fund of America

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)			Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2018	$	12.98	$	.38	$	(.17	)	$	.21		$	(.38	)	$	12.81		1.60	%	$	10,102			.53	%		2.91	%
7/31/2017		13.40		.40		(.42	)		(.02	)		(.40	)		12.98		(.09	)		9,692			.53			3.12
7/31/2016		12.96		.41		.44			.85			(.41	)		13.40		6.69			9,510			.54			3.15
7/31/2015		12.92		.42		.04			.46			(.42	)		12.96		3.62			7,385			.54			3.28
7/31/2014		12.44		.45		.48			.93			(.45	)		12.92		7.60			6,772			.56			3.57
Class C:
7/31/2018		12.98		.27		(.17	)		.10			(.27	)		12.81		.80			432			1.32			2.12
7/31/2017		13.40		.30		(.42	)		(.12	)		(.30	)		12.98		(.88	)		474			1.32			2.33
7/31/2016		12.96		.31		.44			.75			(.31	)		13.40		5.85			517			1.33			2.35
7/31/2015		12.92		.32		.04			.36			(.32	)		12.96		2.80			349			1.33			2.50
7/31/2014		12.44		.35		.48			.83			(.35	)		12.92		6.75			325			1.35			2.79
Class T:
7/31/2018		12.98		.40		(.17	)		.23			(.40	)		12.81		1.83	³		—	⁴		.32	³		3.12	³
7/31/2017^5,6		12.85		.14		.13			.27			(.14	)		12.98		2.07	^3,7		—	⁴		.10	^3,7		1.06	^3,7
Class F-1:
7/31/2018		12.98		.36		(.17	)		.19			(.36	)		12.81		1.48			370			.65			2.80
7/31/2017		13.40		.39		(.43	)		(.04	)		(.38	)		12.98		(.22	)		461			.66			2.99
7/31/2016		12.96		.39		.44			.83			(.39	)		13.40		6.53			518			.67			3.04
7/31/2015		12.92		.41		.04			.45			(.41	)		12.96		3.49			1,474			.67			3.16
7/31/2014		12.44		.43		.48			.91			(.43	)		12.92		7.46			1,389			.68			3.46

78	American Funds Tax-Exempt Funds

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class F-2:
7/31/2018	$	12.98	$	.39	$	(.17	)	$	.22		$	(.39	)	$	12.81		1.74	%	$	2,177		.39	%		3.05	%
7/31/2017		13.40		.42		(.42	)		—	⁸		(.42	)		12.98		.03			1,909		.41			3.24
7/31/2016		12.96		.43		.44			.87			(.43	)		13.40		6.84			2,879		.40			3.26
7/31/2015		12.92		.44		.04			.48			(.44	)		12.96		3.76			990		.41			3.42
7/31/2014		12.44		.46		.48			.94			(.46	)		12.92		7.74			662		.42			3.70
Class F-3:
7/31/2018		12.98		.41		(.17	)		.24			(.41	)		12.81		1.84			5,397		.28			3.11
7/31/2017^5,9		12.75		.22		.23			.45			(.22	)		12.98		3.54	⁷		1,555		.29	¹⁰		3.34	¹⁰
Class R-6:
7/31/2018		12.98		.41		(.17	)		.24			(.41	)		12.81		1.85			550		.28			3.15
7/31/2017		13.40		.44		(.43	)		.01			(.43	)		12.98		.15			380		.29			3.36
7/31/2016		12.96		.44		.44			.88			(.44	)		13.40		6.95			391		.29			3.39
7/31/2015		12.92		.46		.04			.50			(.46	)		12.96		3.86			270		.30			3.52
7/31/2014		12.44		.48		.48			.96			(.48	)		12.92		7.86			165		.31			3.81

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	17%	20%	13%	14%	10%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁴	Amount less than $1 million.
⁵	Based on operations for a period that is less than a full year.
⁶	Class T shares began investment operations on April 7, 2017.
⁷	Not annualized.
⁸	Amount less than $.01.
⁹	Class F-3 shares began investment operations on January 27, 2017.
¹⁰	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

American High-Income Municipal Bond Fund

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)			Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2018	$	15.73	$	.59	$	.04		$	.63		$	(.58	)	$	15.78		4.05	%	$	4,062			.68	%		3.72	%
7/31/2017		16.21		.60		(.49	)		.11			(.59	)		15.73		.76			3,645			.67			3.86
7/31/2016		15.40		.63		.79			1.42			(.61	)		16.21		9.45			3,519			.67			4.02
7/31/2015		15.22		.64		.17			.81			(.63	)		15.40		5.34			2,700			.68			4.13
7/31/2014		14.48		.68		.73			1.41			(.67	)		15.22		9.99			2,357			.68			4.59
Class C:
7/31/2018		15.73		.47		.04			.51			(.46	)		15.78		3.29			227			1.43			2.97
7/31/2017		16.21		.48		(.49	)		(.01	)		(.47	)		15.73		.00			229			1.43			3.10
7/31/2016		15.40		.52		.79			1.31			(.50	)		16.21		8.62			247			1.43			3.26
7/31/2015		15.22		.52		.17			.69			(.51	)		15.40		4.55			182			1.44			3.37
7/31/2014		14.48		.56		.73			1.29			(.55	)		15.22		9.12			161			1.48			3.80
Class T:
7/31/2018		15.73		.63		.04			.67			(.62	)		15.78		4.34	³		—	⁴		.43	³		3.98	³
7/31/2017^5,6		15.50		.20		.23			.43			(.20	)		15.73		2.77	^3,7		—	⁴		.12	^3,7		1.28	^3,7
Class F-1:
7/31/2018		15.73		.58		.04			.62			(.57	)		15.78		3.99			208			.75			3.65
7/31/2017		16.21		.59		(.49	)		.10			(.58	)		15.73		.68			234			.75			3.77
7/31/2016		15.40		.62		.79			1.41			(.60	)		16.21		9.37			282			.74			3.95
7/31/2015		15.22		.62		.17			.79			(.61	)		15.40		5.27			207			.75			4.06
7/31/2014		14.48		.66		.73			1.39			(.65	)		15.22		9.87			178			.79			4.49

80	American Funds Tax-Exempt Funds

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class F-2:
7/31/2018	$	15.73	$	.62	$	.04		$	.66	$	(.61	)	$	15.78		4.26	%	$	798		.49	%		3.91	%
7/31/2017		16.21		.63		(.49	)		.14		(.62	)		15.73		.93			605		.50			4.05
7/31/2016		15.40		.66		.79			1.45		(.64	)		16.21		9.65			775		.48			4.18
7/31/2015		15.22		.66		.17			.83		(.65	)		15.40		5.53			321		.49			4.32
7/31/2014		14.48		.70		.73			1.43		(.69	)		15.22		10.15			223		.53			4.71
Class F-3:
7/31/2018		15.73		.64		.04			.68		(.63	)		15.78		4.37			646		.38			4.02
7/31/2017^5,8		15.30		.32		.43			.75		(.32	)		15.73		4.96	⁷		421		.37	⁹		4.04	⁹
Class R-6:
7/31/2018		15.73		.64		.04			.68		(.63	)		15.78		4.37			550		.38			4.02
7/31/2017		16.21		.64		(.49	)		.15		(.63	)		15.73		1.05			380		.38			4.16
7/31/2016		15.40		.68		.79			1.47		(.66	)		16.21		9.76			269		.38			4.31
7/31/2015		15.22		.68		.17			.85		(.67	)		15.40		5.64			188		.39			4.42
7/31/2014		14.48		.72		.73			1.45		(.71	)		15.22		10.27			108		.42			4.82

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	24%	30%	21%	23%	24%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁴	Amount less than $1 million.
⁵	Based on operations for a period that is less than a full year.
⁶	Class T shares began investment operations on April 7, 2017.
⁷	Not annualized.
⁸	Class F-3 shares began investment operations on January 27, 2017.
⁹	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

The Tax-Exempt Fund of California

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)			Ratio of expenses to average net assets			Ratio of net income to average net assets
Class A:
7/31/2018	$	17.63	$	.51	$	(.20	)	$	.31		$	(.51	)	$	17.43		1.77	%	$	1,678			.61	%		2.90	%
7/31/2017		18.21		.54		(.59	)		(.05	)		(.53	)		17.63		(.22	)		1,641			.60			3.05
7/31/2016		17.62		.57		.58			1.15			(.56	)		18.21		6.65			1,678			.60			3.17
7/31/2015		17.52		.60		.09			.69			(.59	)		17.62		3.98			1,386			.62			3.38
7/31/2014		16.72		.63		.80			1.43			(.63	)		17.52		8.72			1,265			.63			3.72
Class C:
7/31/2018		17.63		.37		(.20	)		.17			(.37	)		17.43		.97			71			1.40			2.11
7/31/2017		18.21		.40		(.59	)		(.19	)		(.39	)		17.63		(1.00	)		83			1.39			2.26
7/31/2016		17.62		.43		.58			1.01			(.42	)		18.21		5.82			97			1.39			2.38
7/31/2015		17.52		.46		.09			.55			(.45	)		17.62		3.16			78			1.40			2.59
7/31/2014		16.72		.50		.80			1.30			(.50	)		17.52		7.87			76			1.42			2.94
Class T:
7/31/2018		17.63		.54		(.20	)		.34			(.54	)		17.43		1.98	³		—	⁴		.40	³		3.10	³
7/31/2017^5,6		17.42		.18		.21			.39			(.18	)		17.63		2.24	^3,7		—	⁴		.12	^3,7		1.02	^3,7
Class F-1:
7/31/2018		17.63		.49		(.20	)		.29			(.49	)		17.43		1.64			75			.73			2.77
7/31/2017		18.21		.51		(.58	)		(.07	)		(.51	)		17.63		(.35	)		76			.73			2.93
7/31/2016		17.62		.55		.58			1.13			(.54	)		18.21		6.52			83			.73			3.04
7/31/2015		17.52		.58		.09			.67			(.57	)		17.62		3.85			63			.74			3.26
7/31/2014		16.72		.61		.80			1.41			(.61	)		17.52		8.59			65			.76			3.60

82	American Funds Tax-Exempt Funds

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return²			Net assets, end of period (in millions)		Ratio of expenses to average net assets			Ratio of net income to average net assets
Class F-2:
7/31/2018	$	17.63	$	.53	$	(.20	)	$	.33		$	(.53	)	$	17.43		1.89	%	$	257		.48	%		3.03	%
7/31/2017		18.21		.56		(.59	)		(.03	)		(.55	)		17.63		(.09	)		200		.48			3.18
7/31/2016		17.62		.60		.58			1.18			(.59	)		18.21		6.79			213		.48			3.29
7/31/2015		17.52		.62		.09			.71			(.61	)		17.62		4.10			134		.49			3.51
7/31/2014		16.72		.65		.80			1.45			(.65	)		17.52		8.85			110		.51			3.84
Class F-3:
7/31/2018		17.63		.55		(.20	)		.35			(.55	)		17.43		2.01			174		.37			3.13
7/31/2017^5,8		17.27		.29		.36			.65			(.29	)		17.63		3.79	⁷		124		.38	⁹		3.25	⁹

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	14%	21%	11%	17%	8%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁴	Amount less than $1 million.
⁵	Based on operations for a period that is less than a full year.
⁶	Class T shares began investment operations on April 7, 2017.
⁷	Not annualized.
⁸	Class F-3 shares began investment operations on January 27, 2017.
⁹	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Financial highlights (continued)

American Funds Tax-Exempt Fund of New York

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of year		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			Ratio of expenses to average net assets before reimbursements			Ratio of expenses to average net assets after reimbursements³			Ratio of net income to average net assets³
Class A:
7/31/2018	$	10.80	$	.27	$	(.19	)	$	.08		$	(.27	)	$	10.61		.75	%⁴	$	183			.72	%⁴		.69	%⁴		2.52	%⁴
7/31/2017		11.12		.27		(.32	)		(.05	)		(.27	)		10.80		(.39	)⁴		169			.74	⁴		.69	⁴		2.55	⁴
7/31/2016		10.66		.28		.45			.73			(.27	)		11.12		6.95	⁴		161			.72	⁴		.69	⁴		2.54	⁴
7/31/2015		10.58		.32		.07			.39			(.31	)		10.66		3.65	⁴		124			.72	⁴		.67	⁴		2.91	⁴
7/31/2014		10.21		.31		.37			.68			(.31	)		10.58		6.83	⁴		102			.73	⁴		.63	⁴		3.07	⁴
Class C:
7/31/2018		10.80		.19		(.19	)		—	⁵		(.19	)		10.61		(.04	)		12			1.52			1.48			1.73
7/31/2017		11.12		.19		(.32	)		(.13	)		(.19	)		10.80		(1.17	)		12			1.52			1.48			1.76
7/31/2016		10.66		.20		.45			.65			(.19	)		11.12		6.11			14			1.51			1.48			1.75
7/31/2015		10.58		.23		.07			.30			(.22	)		10.66		2.79			10			1.56			1.50			2.07
7/31/2014		10.21		.22		.37			.59			(.22	)		10.58		5.89			8			1.60			1.51			2.19
Class T:
7/31/2018		10.80		.29		(.19	)		.10			(.29	)		10.61		.98	⁴		—	⁶		.52	⁴		.48	⁴		2.73	⁴
7/31/2017^7,8		10.68		.09		.13			.22			(.10	)		10.80		2.02	^4,9		—	⁶		.19	^4,9		.15	^4,9		.87	^4,9
Class F-1:
7/31/2018		10.80		.26		(.19	)		.07			(.26	)		10.61		.69	⁴		2			.79	⁴		.75	⁴		2.45	⁴
7/31/2017		11.12		.27		(.32	)		(.05	)		(.27	)		10.80		(.38	)⁴		3			.73	⁴		.68	⁴		2.56	⁴
7/31/2016		10.66		.29		.45			.74			(.28	)		11.12		7.02	⁴		2			.65	⁴		.62	⁴		2.61	⁴
7/31/2015		10.58		.31		.07			.38			(.30	)		10.66		3.58	⁴		2			.80	⁴		.74	⁴		2.83	⁴
7/31/2014		10.21		.31		.37			.68			(.31	)		10.58		6.77	⁴		1			.77	⁴		.68	⁴		3.03	⁴

84	American Funds Tax-Exempt Funds

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of year			Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements			Ratio of expenses to average net assets after reimbursements³			Ratio of net income to average net assets³
Class F-2:
7/31/2018	$	10.80		$	.29	$	(.19	)	$	.10		$	(.29	)	$	10.61		.89	%	$	16		.59	%		.54	%		2.67	%
7/31/2017		11.12			.29		(.32	)		(.03	)		(.29	)		10.80		(.26	)		11		.58			.56			2.68
7/31/2016		10.66			.30		.45			.75			(.29	)		11.12		7.10			31		.58			.55			2.68
7/31/2015		10.58			.33		.07			.40			(.32	)		10.66		3.77			20		.61			.56			3.02
7/31/2014		10.21			.32		.37			.69			(.32	)		10.58		6.89			16		.66			.57			3.13
Class F-3:
7/31/2018		10.80			.30		(.19	)		.11			(.30	)		10.61		1.00			26		.48			.44			2.78
7/31/2017^7,10		10.58			.15		.22			.37			(.15	)		10.80		3.54	⁹		16		.58	¹¹		.45	¹¹		2.79	¹¹

	Year ended July 31
	2018	2017	2016	2015	2014
Portfolio turnover rate for all share classes	21%	27%	14%	42%	25%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain reimbursements from CRMC. During the periods shown, CRMC reimbursed a portion of miscellaneous fees and expenses.
⁴	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
⁵	Amount less than $.01.
⁶	Amount less than $1 million.
⁷	Based on operations for a period that is less than a full year.
⁸	Class T shares began investment operations on April 7, 2017.
⁹	Not annualized.
¹⁰	Class F-3 shares began investment operations on January 27, 2017.
¹¹	Annualized.

See Notes to Financial Statements

American Funds Tax-Exempt Funds

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the summary investment portfolios, of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the “Funds”) as of July 31, 2018, the related statements of operations for the year ended July 31, 2018, the statements of changes in net assets for each of the two years in the period ended July 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended July 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2018 by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

Los Angeles, California
September 13, 2018

We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.

86	American Funds Tax-Exempt Funds

Expense example

unaudited

As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (February 1, 2018, through July 31, 2018).

Actual expenses:

The first line of each share class in the table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

Class F-1, F-2 and F-3 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

American Funds Tax-Exempt Funds

American Funds Short-Term Tax-Exempt Bond Fund

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period^*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,004.94	$	2.93		.59	%
Class A - assumed 5% return		1,000.00		1,021.87		2.96		.59
Class T - actual return		1,000.00		1,005.54		2.39		.48
Class T - assumed 5% return		1,000.00		1,022.41		2.41		.48
Class F-1 - actual return		1,000.00		1,003.84		3.97		.80
Class F-1 - assumed 5% return		1,000.00		1,020.83		4.01		.80
Class F-2 - actual return		1,000.00		1,005.13		2.68		.54
Class F-2 - assumed 5% return		1,000.00		1,022.12		2.71		.54
Class F-3 - actual return		1,000.00		1,005.67		2.19		.44
Class F-3 - assumed 5% return		1,000.00		1,022.61		2.21		.44
Class R-6 - actual return		1,000.00		1,005.60		2.19		.44
Class R-6 - assumed 5% return		1,000.00		1,022.61		2.21		.44

Limited Term Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period^*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,006.15	$	2.93		.59	%
Class A - assumed 5% return		1,000.00		1,021.87		2.96		.59
Class C - actual return		1,000.00		1,002.50		6.60		1.33
Class C - assumed 5% return		1,000.00		1,018.20		6.66		1.33
Class T - actual return		1,000.00		1,007.56		1.59		.32
Class T - assumed 5% return		1,000.00		1,023.21		1.61		.32
Class F-1 - actual return		1,000.00		1,005.85		3.28		.66
Class F-1 - assumed 5% return		1,000.00		1,021.52		3.31		.66
Class F-2 - actual return		1,000.00		1,007.09		2.04		.41
Class F-2 - assumed 5% return		1,000.00		1,022.76		2.06		.41
Class F-3 - actual return		1,000.00		1,007.64		1.49		.30
Class F-3 - assumed 5% return		1,000.00		1,023.31		1.51		.30
Class R-6 - actual return		1,000.00		1,007.64		1.44		.29
Class R-6 - assumed 5% return		1,000.00		1,023.36		1.45		.29

The Tax-Exempt Bond Fund of America

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period^*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,009.39	$	2.59		.52	%
Class A - assumed 5% return		1,000.00		1,022.22		2.61		.52
Class C - actual return		1,000.00		1,005.42		6.51		1.31
Class C - assumed 5% return		1,000.00		1,018.30		6.56		1.31
Class T - actual return		1,000.00		1,010.50		1.55		.31
Class T - assumed 5% return		1,000.00		1,023.26		1.56		.31
Class F-1 - actual return		1,000.00		1,008.83		3.14		.63
Class F-1 - assumed 5% return		1,000.00		1,021.67		3.16		.63
Class F-2 - actual return		1,000.00		1,010.07		1.89		.38
Class F-2 - assumed 5% return		1,000.00		1,022.91		1.91		.38
Class F-3 - actual return		1,000.00		1,010.59		1.35		.27
Class F-3 - assumed 5% return		1,000.00		1,023.46		1.35		.27
Class R-6 - actual return		1,000.00		1,010.59		1.35		.27
Class R-6 - assumed 5% return		1,000.00		1,023.46		1.35		.27

88	American Funds Tax-Exempt Funds

American High-Income Municipal Bond Fund

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,018.14	$	3.30		.66	%
Class A - assumed 5% return		1,000.00		1,021.52		3.31		.66
Class C - actual return		1,000.00		1,014.42		6.94		1.39
Class C - assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class T - actual return		1,000.00		1,019.51		2.00		.40
Class T - assumed 5% return		1,000.00		1,022.81		2.01		.40
Class F-1 - actual return		1,000.00		1,017.87		3.55		.71
Class F-1 - assumed 5% return		1,000.00		1,021.27		3.56		.71
Class F-2 - actual return		1,000.00		1,019.15		2.25		.45
Class F-2 - assumed 5% return		1,000.00		1,022.56		2.26		.45
Class F-3 - actual return		1,000.00		1,019.69		1.75		.35
Class F-3 - assumed 5% return		1,000.00		1,023.06		1.76		.35
Class R-6 - actual return		1,000.00		1,019.69		1.75		.35
Class R-6 - assumed 5% return		1,000.00		1,023.06		1.76		.35

The Tax-Exempt Fund of California

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,009.74	$	2.94		.59	%
Class A - assumed 5% return		1,000.00		1,021.87		2.96		.59
Class C - actual return		1,000.00		1,005.80		6.86		1.38
Class C - assumed 5% return		1,000.00		1,017.95		6.90		1.38
Class T - actual return		1,000.00		1,010.75		1.94		.39
Class T - assumed 5% return		1,000.00		1,022.86		1.96		.39
Class F-1 - actual return		1,000.00		1,009.13		3.54		.71
Class F-1 - assumed 5% return		1,000.00		1,021.27		3.56		.71
Class F-2 - actual return		1,000.00		1,010.38		2.29		.46
Class F-2 - assumed 5% return		1,000.00		1,022.51		2.31		.46
Class F-3 - actual return		1,000.00		1,010.89		1.79		.36
Class F-3 - assumed 5% return		1,000.00		1,023.01		1.81		.36

American Funds Tax-Exempt Fund of New York

	Beginning account value 2/1/2018		Ending account value 7/31/2018		Expenses paid during period^*		Annualized expense ratio
Class A - actual return	$	1,000.00	$	1,006.29	$	3.08		.62	%
Class A - assumed 5% return		1,000.00		1,021.72		3.11		.62
Class C - actual return		1,000.00		1,002.35		7.00		1.41
Class C - assumed 5% return		1,000.00		1,017.80		7.05		1.41
Class T - actual return		1,000.00		1,007.37		2.09		.42
Class T - assumed 5% return		1,000.00		1,022.71		2.11		.42
Class F-1 - actual return		1,000.00		1,005.97		3.43		.69
Class F-1 - assumed 5% return		1,000.00		1,021.37		3.46		.69
Class F-2 - actual return		1,000.00		1,006.98		2.34		.47
Class F-2 - assumed 5% return		1,000.00		1,022.46		2.36		.47
Class F-3 - actual return		1,000.00		1,007.49		1.84		.37
Class F-3 - assumed 5% return		1,000.00		1,022.96		1.86		.37

*	The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

American Funds Tax-Exempt Funds

Tax information

unaudited

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The funds hereby designate the following amounts for the funds’ fiscal year ended July 31, 2018:

Fund	Exempt interest dividends
American Funds Short-Term Tax-Exempt Bond Fund		100	%
Limited Term Tax-Exempt Bond Fund of America		100
The Tax-Exempt Bond Fund of America		100
American High-Income Municipal Bond Fund		100
The Tax-Exempt Fund of California		100
American Funds Tax-Exempt Fund of New York		100

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2019, to determine the calendar year amounts to be included on their 2018 tax returns. Shareholders should consult their tax advisors.

90	American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement

The boards of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the “board”) have approved each fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through April 30, 2019. The agreement for The Tax-Exempt Bond Fund of America was amended to add additional advisory fee breakpoints if and when the fund’s net assets exceed $15 billion and $21 billion, and the agreement for American High-Income Municipal Bond Fund was amended to add an additional advisory fee breakpoint if and when the fund’s net assets exceed $6 billion. The board approved the agreement following the recommendation of each fund’s Contracts Committee (the “committee”), which is composed of each fund’s independent board members. The board and the committee determined in the exercise of their business judgment that each fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of each fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the funds under each fund’s agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

2. Investment results

The board and the committee considered the investment results of each fund in light of its objective. They compared each fund’s investment results with those of other relevant funds (including funds that currently form the basis of the Lipper index for the category in which the fund is included), and data such as relevant market and fund indexes, over various periods through October 31, 2017. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.

American Funds Short-Term Tax-Exempt Bond Fund seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Short Municipal Debt Funds Average and the Bloomberg Barclays Municipal Short 1–5 Years Index. They noted the fund’s relatively short history and conversion from a municipal money market fund when reviewing the results for the one-year, three-year, five-year and lifetime periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.

Limited Term Tax-Exempt Bond Fund of America seeks to provide current income that is exempt from regular federal income tax, consistent with the maturity and quality standards described in the prospectus, and to preserve capital. The board and the committee reviewed the fund’s investment results measured against the Lipper Short-Intermediate Municipal Debt Funds Average and the Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 15-year, 20-year and lifetime periods, placing greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.

The Tax-Exempt Bond Fund of America seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper General & Insured Municipal Debt Funds Average and the Bloomberg Barclays Municipal Bond Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 15-year, 20-year and lifetime periods, placing greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes, though higher for the lifetime period.

American High-Income Municipal Bond Fund seeks to provide a high level of current income exempt from regular federal income tax. The board and the committee reviewed the fund’s investment results measured against the Lipper High Yield Municipal Debt Funds Average, the Bloomberg Barclays Municipal Bond Index and the Bloomberg Barclays High Yield Municipal Bond Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 15-year, 20-year and lifetime periods, placing greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes.

92	American Funds Tax-Exempt Funds

The Tax-Exempt Fund of California seeks to provide a high level of current income exempt from regular federal and California income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper California Municipal Debt Funds Average and the Bloomberg Barclays California Municipal Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 15-year, 20-year and lifetime periods, placing greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes, though higher for the lifetime period.

American Funds Tax-Exempt Fund of New York seeks to provide a high level of current income exempt from regular federal, New York state and New York City income taxes, with a secondary objective of preservation of capital. The board and the committee reviewed the fund’s investment results measured against the Lipper New York Municipal Debt Funds Average and the Bloomberg Barclays New York Municipal Index. They noted the fund’s relatively short history and reviewed the results for the one-year, three-year, five-year and lifetime periods. They noted that the investment results of the fund were mixed compared to the results of these indexes, though higher for the lifetime period.

The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit the funds and their shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that each fund’s advisory fees and expenses generally compared favorably to those of other similar funds included in their respective categories (with the exception of American Funds Short-Term Tax-Exempt Bond Fund’s advisory fees, which were in line with those of other similar funds included in its respective category, while expenses generally compared favorably to those of other funds in the category). The board and the committee also considered the breakpoint discounts in each fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase, as well as CRMC’s agreement to additional breakpoints in the advisory fee schedule for TEBF and an additional breakpoint in the advisory fee schedule for AHIM. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by each fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the fund and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the funds.

American Funds Tax-Exempt Funds

Approval of Investment Advisory and Service Agreement (continued)

4. Ancillary benefits

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with each fund and other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting the benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the fund. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in each fund’s advisory fee structure and CRMC’s sharing of any economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.

94	American Funds Tax-Exempt Funds

Boards of trustees and other officers

Independent trustees¹

Name and year of birth	Year first elected a trustee of the fund²			Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
William H. Baribault, 1945		STEX	2010	CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	81	General Finance Corporation
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010
James G. Ellis, 1947		STEX	2009	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	81	Mercury General Corporation
		LTEX	2006
		TEBF	2006
		AHIM	2006
		TEFCA	2006
		TEFNY	2010
Nariman Farvardin, PhD, 1956		STEX	2018	President, Stevens Institute of Technology	78	None
		LTEX	2018
		TEBF	2018
		AHIM	2018
		TEFCA	2018
		TEFNY	2018
Leonard R. Fuller, 1946		STEX	1995	Private investor; former President and CEO, Fuller Consulting (financial management consulting)	81	None
		LTEX	1994
		TEBF	1994
		AHIM	1994
		TEFCA	1994
		TEFNY	2010
Mary Davis Holt, 1950		STEX		Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003)	78	None
		2015–2016; 2017
		LTEX
		2015–2016; 2017
		TEBF
		2015–2016; 2017
		AHIM
		2015–2016; 2017
		TEFCA
		2015–2016; 2017
		TEFNY
		2015–2016; 2017
R. Clark Hooper, 1946 Chairman of the Boards (Independent and Non- Executive)		STEX	2005	Private investor	81	None
		LTEX	2005
		TEBF	2005
		AHIM	2005
		TEFCA	2005
		TEFNY	2010
Merit E. Janow, 1958		STEX	2010	Dean and Professor, Columbia University, School of International and Public Affairs	80	MasterCard Incorporated; Trimble Inc.
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010

See page 98 for footnotes.

American Funds Tax-Exempt Funds

Independent trustees¹ (continued)

Name and year of birth	Year first elected a trustee of the fund²			Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Laurel B. Mitchell, PhD, 1955		STEX	2009	Chair, California Jump$tart Coalition for Personal Financial Literacy; part-time faculty, Pomona College; Professor Emerita, University of Redlands; former Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands	77	None
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2009
		TEFNY	2010

Frank M. Sanchez, 1943		STEX	1999	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	77	None
		LTEX	1999
		TEBF	1999
		AHIM	1999
		TEFCA	1999
		TEFNY	2010
Margaret Spellings, 1957		STEX	2009	President, The University of North Carolina; former President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce	82	None
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010

Alexandra Trower, 1964		AHIM	2018	Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies	68	None
		TEFNY	2018

Interested trustees^4,5

Name, year of birth and position with fund	Year first elected a trustee or officer of the fund²			Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Karl J. Zeile, 1966 President and Trustee: TEBF Senior Vice President and Trustee: LTEX, AHIM, TEFCA, TEFNY Trustee: STEX		STEX	2011	Partner – Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.	7	None
		LTEX	2004
		TEBF	2009
		AHIM	2008
		TEFCA	2009
		TEFNY	2010
Michael C. Gitlin, 1970		STEX	2015	Partner – Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.;⁶served as Head of Fixed Income at a large investment management firm prior to joining Capital Research and Management Company in 2015	19	None
		LTEX	2015
		TEBF	2015
		AHIM	2015
		TEFCA	2015
		TEFNY	2015

The funds’ statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the funds is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

STEX	American Funds Short-Term Tax-Exempt Bond Fund
LTEX	Limited Term Tax-Exempt Bond Fund of America
TEBF	The Tax-Exempt Bond Fund of America
AHIM	American High-Income Municipal Bond Fund
TEFCA	The Tax-Exempt Fund of California
TEFNY	American Funds Tax-Exempt Fund of New York

96	American Funds Tax-Exempt Funds

Other officers⁵

Name, year of birth and position with fund	Year first elected an officer of the fund²			Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund
Neil L. Langberg, 1953 President: STEX, LTEX, TEFCA Senior Vice President: TEBF, AHIM		STEX	1989	Partner — Capital Fixed Income Investors, Capital Research and Management Company
		LTEX	1993
		TEBF	1985
		AHIM	1994
		TEFCA	1986
Chad M. Rach, 1972 President: AHIM Senior Vice President: TEBF		AHIM	2015	Partner — Capital Fixed Income Investors, Capital Research and Management Company
		TEBF	2016

Jerome H. Solomon, 1963 President: TEFNY Senior Vice President: AHIM		TEFNY	2011	Partner — Capital Fixed Income Investors, Capital Research and Management Company
		AHIM	2017

Kristine M. Nishiyama, 1970 Executive Vice President		STEX	2003	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President and General Counsel, Capital Bank and Trust Company⁶
		LTEX	2003
		TEBF	2003
		AHIM	2003
		TEFCA	2003
		TEFNY	2010
Aaron M. Applebaum, 1979 Vice President		STEX	2016	Partner — Capital Fixed Income Investors, Capital Research and Management Company
Aaron M. Applebaum, 1979 Vice President		LTEX	2016
Steven I. Koszalka, 1964 Secretary		STEX	2010	Vice President — Fund Business Management Group, Capital Research and Management Company
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010
Brian C. Janssen, 1972 Treasurer		STEX	2015	Vice President — Investment Operations, Capital Research and Management Company
		LTEX	2015
		TEBF	2012
		AHIM	2015
		TEFCA	2012
		TEFNY	2012
Jane Y. Chung, 1974 Assistant Secretary		STEX	2014	Associate — Fund Business Management Group, Capital Research and Management Company
		LTEX	2014
		TEBF	2014
		AHIM	2014
		TEFCA	2014
		TEFNY	2014
Dori Laskin, 1951 Assistant Treasurer		STEX	2010	Vice President — Investment Operations, Capital Research and Management Company
		LTEX	2010
		TEBF	2010
		AHIM	2010
		TEFCA	2010
		TEFNY	2010
Gregory F. Niland, 1971 Assistant Treasurer		STEX	2015	Vice President — Investment Operations, Capital Research and Management Company
		LTEX	2015
		TEBF	2015
		AHIM	2015
		TEFCA	2015
		TEFNY	2015

See page 98 for footnotes.

American Funds Tax-Exempt Funds

¹	The term independent trustee refers to a trustee who is not an “interested person” of the funds within the meaning of the Investment Company Act of 1940.
²	Includes service as a director/trustee or officer of the fund’s predecessor, The Tax-Exempt Bond Fund of America, Inc. or American High-Income Municipal Bond Fund, Inc., each a Maryland corporation, or Limited Term Tax-Exempt Bond Fund of America or The Tax-Exempt Fund of California, each a Massachusetts business trust. Trustees and officers of the funds serve until their resignation, removal or retirement.
³	This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company.
⁴	The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their current or former affiliation with the funds’ investment adviser, Capital Research and Management Company, or affiliated entities (including the funds’ principal underwriter).
⁵	All of the trustees and/or officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
⁶	Company affiliated with Capital Research and Management Company.

98	American Funds Tax-Exempt Funds

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American Funds Tax-Exempt Funds

Offices of the funds and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

6455 Irvine Center Drive
Irvine, CA 92618-4518

Transfer agent for shareholder accounts

American Funds Service Company
(Write to the address near you.)

P.O. Box 6007
Indianapolis, IN 46206-6007

P.O. Box 2280
Norfolk, VA 23501-2280

Counsel

Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd floor
Los Angeles, CA 90071-3132

Custodians of assets

Bank of New York Mellon
One Wall Street
New York, NY 10286

JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Independent registered public accounting firm

PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

100	American Funds Tax-Exempt Funds

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the funds’ prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. Each fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

Complete July 31, 2018, portfolios of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York’s investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).

Each fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the funds. If used as sales material after September 30, 2018, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

Bloomberg^® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays^® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

The Capital Advantage^®

Since 1931, American Funds^® by Capital Group has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital System^SM— has resulted in a superior long-term track record.

	Aligned with investor success
	We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.¹

	The Capital System
	The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

	American Funds’ superior long-term track record
	Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 77% of 10-year periods and 80% of 20-year periods.²Fund management fees have been among the lowest in the industry.³

	¹	Portfolio manager experience as of December 31, 2017.
	²	Based on Class F-2 share results for rolling periods through December 31, 2017. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. 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. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
	³	On average, our management fees were in the lowest quintile 71% of the time, based on the 20-year period ended December 31, 2017, versus comparable Lipper categories, excluding funds of funds.

ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made by calling 800/421-4225 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.

ITEM 3 – Audit Committee Financial Expert

The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.

ITEM 4 – Principal Accountant Fees and Services		STEX

Registrant:
a) Audit Fees:

	2017	$63,000
	2018	$42,000

b) Audit-Related Fees:
	2017	None
	2018	None

c) Tax Fees:
	2017	$7,000
	2018	$7,000
	The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

d) All Other Fees:
	2017	None
	2018	None

	Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
a) Audit Fees:
	Not Applicable

b) Audit-Related Fees:
	2017	None
	2018	None
	The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.

c) Tax Fees:
	2017	None
	2018	None
	The tax fees consist of consulting services relating to the Registrant’s investments.


d) All Other Fees:

	2017	None
	2018	None
	The other fees consist of subscription services related to an accounting research tool.


	All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.

	Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $63,000 for fiscal year 2017 and $42,000 for fiscal year 2018. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

American Funds Short-Term Tax-Exempt Bond Fund^®

Investment portfolio

July 31, 2018

Bonds, notes & other debt instruments 89.79% Alabama 2.21%	Principal amount (000)	Value (000)
21st Century Auth., Tobacco Settlement Rev. Ref. Bonds, Series 2012-A, 5.00% 2019	$3,600	$3,694
Black Belt Energy Gas Dist., Gas Supply Rev. Bonds, Series 2016-A, 4.00% 2046 (put 2021)	7,500	7,826
Federal Aid Highway Fin. Auth., Federal Highway Grant Anticipation Bonds, Series 2012, 5.00% 2018	3,315	3,324
County of Jefferson, Limited Obligation Rev. Ref. Bonds, Series 2017, 5.00% 2019	1,875	1,948
County of Jefferson, Limited Obligation Rev. Ref. Bonds, Series 2017, 5.00% 2022	1,000	1,111
County of Jefferson, Limited Obligation Rev. Ref. Bonds, Series 2017, 5.00% 2023	1,500	1,692
City of Mobile, Industrial Dev. Board, Pollution Control Rev. Bonds (Alabama Power Company Barry Plant Project), Series 2008, 1.625% 2034 (put 2018)	2,000	2,000
		21,595
Alaska 0.10%
Housing Fin. Corp., General Mortgage Rev. Bonds, Series 2016-A, 3.50% 2046	890	918
Housing Fin. Corp., Home Mortgage Rev. Ref. Bonds, Series 2012-A, 4.00% 2040	55	55
		973
Arizona 0.59%
County of Coconino, Pollution Control Corp., Pollution Control Rev. Ref. Bonds, Series 2017-A, AMT, 1.80% 2032	1,000	994
County of Maricopa, Industrial Dev. Auth., Rev. Bonds (Banner Health), Series 2017-B, 5.00% 2048 (put 2022)	2,000	2,231
McAllister Academic Village LLC, Rev. Ref. Bonds (Arizona State University Hassayampa Academic Village Project), Series 2016, 5.00% 2022	400	444
City of Phoenix, Civic Improvement Corp., Wastewater System Rev. Ref. Bonds, Series 2016, 5.00% 2019	1,000	1,032
School Facs. Board, Certs. of Part., Series 2015-A, 5.00% 2021	1,000	1,093
		5,794
California 6.14%
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2006-C-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹	6,600	6,720
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2007-E-3, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2047 (put 2019)¹	3,000	3,010
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2008-A-1, (SIFMA Municipal Swap Index + 0.90%) 1.84% 2045 (put 2023)¹	1,250	1,273
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2014-G, (SIFMA Municipal Swap Index + 0.60%) 1.54% 2034 (put 2020)¹	2,000	2,011
Bay Area Toll Auth., San Francisco Bay Area Toll Bridge Rev. Bonds, Series 2017-D, (3-month USD-LIBOR x 0.70 + 0.55%) 2.186% 2045 (put 2021)¹	500	504
Trustees of the California State University, Systemwide Rev. Bonds, Series 2016-B-3, 4.00% 2051 (put 2023)	1,500	1,636
City of Chino, Public Fncg. Auth., Local Agcy. Rev. Ref. Bonds, Series 2015-A, Assured Guaranty Municipal insured, 2.50% 2018	1,495	1,496
Various Purpose G.O. Bonds, Series 2013-D, (SIFMA Municipal Swap Index + 0.29%) 1.23% 2028 (put 2020)¹	2,200	2,201
Various Purpose G.O. Bonds, Series 2016-B, (1-month USD-LIBOR x 0.70 + 0.76%) 2.224% 2031 (put 2021)¹	1,500	1,519
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2013-A, 5.00% 2019	2,000	2,059
Health Facs. Fncg. Auth., Rev. Green Bonds (Kaiser Permanente), Series 2017-C, 5.00% 2031 (put 2022)	2,000	2,252
Health Facs. Fncg. Auth., Rev. Ref. Bonds (St. Joseph Health System), Series 2013-D, 5.00% 2043 (put 2020)	1,500	1,606
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2011-A-4, (3-month USD-LIBOR x 0.70 + 0.37%) 2.006% 2038 (put 2020)¹	1,500	1,506

American Funds Short-Term Tax-Exempt Bond Fund — Page 1 of 18

Bonds, notes & other debt instruments California (continued)	Principal amount (000)	Value (000)
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (J. Paul Getty Trust), Series 2013-A-2, (1-month USD-LIBOR x 0.70 + 0.50%) 1.95% 2047 (put 2019)¹	$3,500	$3,506
Infrastructure and Econ. Dev. Bank, Rev. Ref. Bonds (Pacific Gas and Electric Company), Series 2008-F, 1.75% 2026 (put 2022)	6,070	5,766
City of Lancaster, Successor Agcy. to the Redev. Agcy., Redev. Project Area Nos. 5 and 6 (School Dist. Pass-Throughs), Tax Allocation Rev. Ref. Bonds, Taxable Series 2016-B-2, Assured Guaranty Municipal insured, 3.00% 2019	435	438
City of Los Angeles, Dept. of Airports, Los Angeles International Airport, Rev. Bonds, Series 2016-B, AMT, 5.00% 2022	2,000	2,212
City of Los Angeles, Dept. of Airports, Los Angeles International Airport, Rev. Bonds, Series 2016-B, AMT, 5.00% 2023	2,500	2,817
City of Los Angeles, Multi Family Housing Rev. Bonds (Jordan Downs Phase 1B Apartments), Series 2018-A-2, 2.08% 2022 (put 2021)	450	451
City of Oakland, Successor Agcy. to the Redev. Agcy., Tax Allocation Rev. Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2018	1,085	1,088
City of Oakland, Successor Agcy. to the Redev. Agcy., Tax Allocation Rev. Ref. Bonds (Central Dist. Redev. Project), Series 2013, 5.00% 2019	1,000	1,037
Port of Oakland, Rev. Ref. Bonds, Series 2017-D, AMT, 5.00% 2022	2,000	2,232
City of Riverside, Rev. Ref. Water Bonds, Series 2011-A, (SIFMA Municipal Swap Index + 0.15%) 1.57% 2035 (put 2020)¹	2,400	2,400
City of San Jose, Airport Rev. Ref. Bonds, Series 2017-A, AMT, 5.00% 2021	1,295	1,393
City of San Jose, Airport Rev. Ref. Bonds, Series 2017-A, AMT, 5.00% 2022	1,000	1,098
County of Santa Cruz, Successor Agcy. to the Redev. Agcy., Tax Allocation Rev. Ref. Bonds, Series 2014, BAM insured, 5.00% 2018	300	301
Statewide Communities Dev. Auth., Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2006-D, 2.625% 2033 (put 2023)	2,000	2,015
Statewide Communities Dev. Auth., Rev. Bonds (Hebrew Home for Aged Disabled), Series 2016, 3.50% 2021	3,350	3,417
Temecula Valley Unified School Dist., Fncg. Auth. 2015 Special Tax Rev. Bonds, Series 2015, BAM insured, 5.00% 2019	375	387
Dept. of Veterans Affairs, Home Purchase Rev. Bonds, Series 2016-B, 3.50% 2045	1,325	1,369
Dept. of Veterans Affairs, Veterans G.O. Rev. Ref. Bonds, Series 2015-CM, AMT, 2.45% 2031	340	340
		60,060
Colorado 1.24%
City and County of Denver, Airport System Rev. Bonds, Series 2013-A, AMT, 5.00% 2020	1,000	1,070
City and County of Denver, Dept. of Aviation (Denver International Airport), Rev. Bonds, Series 2016-B, (1-month USD-LIBOR x 0.70 + 0.86%) 2.324% 2031 (put 2019)¹	1,810	1,816
E-470 Public Highway Auth., Rev. Bonds, Series 2017-A, (1-month USD-LIBOR x 0.67 + 0.90%) 2.282% 2039 (put 2019)¹	2,300	2,307
Health Facs. Auth., Hospital Rev. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2016-C, 5.00% 2036 (put 2023)	2,000	2,267
Housing and Fin. Auth., Single Family Mortgage Bonds, Series 2017-C, Class I, 4.00% 2048	1,950	2,049
Housing and Fin. Auth., Single Family Mortgage Bonds, Series 2018-B-1, Class I, 4.00% 2048	1,500	1,583
Housing and Fin. Auth., Single Family Mortgage Bonds, Series 2018-C, Class I, 4.25% 2048	960	1,026
		12,118
Connecticut 1.91%
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 1999-B, 1.65% 2029 (put 2019)	1,410	1,409
Health and Educational Facs. Auth., Rev. Bonds (Quinnipiac University Issue), Series 2016-M, 5.00% 2022	750	826
Health and Educational Facs. Auth., Rev. Bonds (Yale University Issue), Series 2014-A, 1.30% 2048 (put 2020)	3,000	2,986
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2014-D-1, 4.00% 2044	1,715	1,770
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2014-C-1, 4.00% 2044	640	665
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2016-A-1, 4.00% 2045	1,120	1,168
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2016-E-1, 3.50% 2046	1,120	1,156

American Funds Short-Term Tax-Exempt Bond Fund — Page 2 of 18

Bonds, notes & other debt instruments Connecticut (continued)	Principal amount (000)	Value (000)
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2017-C-1, 4.00% 2047	$1,910	$2,006
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2017-D, 4.00% 2047	690	726
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2012-F-2, AMT, 2.75% 2035	375	378
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-A, 3.50% 2044	2,460	2,525
Housing Fin. Auth., Housing Mortgage Fin. Program Rev. Ref. Bonds, Series 2015-C-1, 3.50% 2045	1,545	1,589
Special Tax Obligation Bonds, Transportation Infrastructure Purposes, Series 2008-A, 5.00% 2027 (preref. 2018)	1,500	1,514
		18,718
District of Columbia 0.05%
Water and Sewer Auth., Public Utility Rev. Bonds, Series 2016-A, 5.00% 2019	500	520
Florida 3.10%
County of Broward, Airport System Rev. Bonds, Series 2017, AMT, 5.00% 2020	1,000	1,066
County of Broward, Airport System Rev. Bonds, Series 2017, AMT, 5.00% 2023	1,100	1,243
County of Broward, Airport System Rev. Ref. Bonds, Series 2015-A, AMT, 5.00% 2021	1,000	1,089
City of Cape Coral, Utility Improvement Rev. Ref. Assessment Bonds (Various Areas), Series 2017, Assured Guaranty Municipal insured, 1.40% 2018	495	495
City of Cape Coral, Utility Improvement Rev. Ref. Assessment Bonds (Various Areas), Series 2017, Assured Guaranty Municipal insured, 1.65% 2019	1,135	1,134
Citizens Property Insurance Corp., Coastal Account Secured Bonds, Series 2011-A-1, 5.00% 2019	1,660	1,707
Citizens Property Insurance Corp., Personal Lines Account/Commercial Lines Account Senior Secured Bonds, Series 2012-A-1, 5.00% 2019	7,450	7,660
Housing Fin. Corp., Homeowner Mortgage Rev. Bonds (Special Program), Series 2015-A, 3.50% 2046	705	723
Housing Fin. Corp., Homeowner Mortgage Rev. Bonds, Series 2011-C, 4.50% 2030	290	297
Housing Fin. Corp., Homeowner Mortgage Rev. Bonds, Series 2017-1, 4.00% 2048	1,960	2,070
Housing Fin. Corp., Homeowner Mortgage Rev. Ref. Bonds, Series 2011-1, AMT, 5.00% 2041	240	247
Housing Fin. Corp., Multi Family Mortgage Rev. Bonds (Lake Mangonia Apartments), Series 2018-B, 1.75% 2019	850	852
JEA, Electric System Rev. Bonds, Series 2012-B, 5.00% 2026 (preref. 2021)	4,650	5,093
JEA, Water and Sewer System Rev. Bonds, Series 2017-A, 5.00% 2021	1,240	1,363
City of Lakeland, Energy System Rev. Ref. Bonds, Series 2016, 5.00% 2019	900	934
County of Miami-Dade, Expressway Auth., Toll System Rev. Ref. Bonds, Series 2013-A, 5.00% 2019	1,000	1,031
County of Miami-Dade, Expressway Auth., Toll System Rev. Ref. Bonds, Series 2013-A, 5.00% 2020	1,000	1,061
County of Orange, Health Facs. Auth., Hospital Rev. Ref. Bonds (Orlando Health Obligated Group), Series 2006-B, 5.25% 2029 (preref. 2018)	820	829
South Florida Water Management Dist., Certs. of Part., Series 2015, 5.00% 2022	1,250	1,396
		30,290
Georgia 1.63%
City of Atlanta, Dev. Auth., Student Housing Facs. Rev. Ref. Bonds (Piedmont/Ellis, LLC University Commons Project), Series 2013, 5.00% 2018 (escrowed to maturity)	1,000	1,003
City of Atlanta, Dev. Auth., Student Housing Facs. Rev. Ref. Bonds (Piedmont/Ellis, LLC University Commons Project), Series 2013, 5.00% 2019 (escrowed to maturity)	760	787
City of Atlanta, Water and Wastewater Rev. Ref. Bonds, Series 2013-B, 5.00% 2019	2,000	2,085
County of Burke, Dev. Auth., Pollution Control Rev. Bonds (Georgia Power Company Plant Vogtle Project), Series 2012, 1.85% 2049 (put 2019)	1,200	1,199
County of Clark, Hospital Auth., Rev. Anticipation Certs. (Piedmont Healthcare, Inc. Project), Series 2016-A, 5.00% 2019	600	619
County of Floyd, Dev. Auth., Pollution Control Rev. Bonds (Georgia Power Company Plant Hammond Project), Series 2010, 2.35% 2022 (put 2020)	4,000	4,023
County of Fulton, Dev. Auth., Rev. Bonds (Piedmont Healthcare, Inc. Project), Series 2016-A, 5.00% 2019	525	541
Housing and Fin. Auth., Single Family Mortgage Bonds, Series 2014-A-1, 4.00% 2044	520	540
Housing and Fin. Auth., Single Family Mortgage Bonds, Series 2016-A-1, 3.50% 2046	550	567

American Funds Short-Term Tax-Exempt Bond Fund — Page 3 of 18

Bonds, notes & other debt instruments Georgia (continued)	Principal amount (000)	Value (000)
Road and Tollway Auth., Federal Highway Grant Anticipation Rev. Bonds, Series 2009-A, 5.00% 2019	$2,500	$2,572
Road and Tollway Auth., Federal Highway Grant Anticipation Rev. Ref. Bonds, Series 2017-B, 5.00% 2020	1,870	1,982
		15,918
Hawaii 0.72%
City and County of Honolulu, G.O. Bonds (Honolulu Rail Transit Project), Series 2017-H, (SIFMA Municipal Swap Index + 0.31%) 1.25% 2024 (put 2020)¹	3,000	3,000
City and County of Honolulu, G.O. Bonds (Honolulu Rail Transit Project), Series 2017-H, (SIFMA Municipal Swap Index + 0.32%) 1.26% 2025 (put 2020)¹	2,000	2,000
City and County of Honolulu, G.O. Bonds, Series 2012-B, 5.00% 2018	1,000	1,009
Dept. of Transportation, Airports Division, Lease Rev. Certs. of Part., Series 2013, AMT, 5.00% 2019	1,000	1,033
		7,042
Illinois 10.27%
Build Illinois Bonds, Sales Tax Rev. Bonds, Series 2013, 5.00% 2020	6,300	6,617
Build Illinois Bonds, Sales Tax Rev. Ref. Bonds, Series 2016-D, 4.00% 2021	3,000	3,134
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2013-A, AMT, 4.00% 2019	1,925	1,945
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Ref. Bonds, Series 2012-B, AMT, 4.00% 2020	2,000	2,060
City of Chicago, Transit Auth., Sales Tax Receipts Rev. Bonds, Series 2011, 5.00% 2021	3,000	3,250
City of Chicago, Wastewater Transmission Rev. Ref. Bonds, Series 2017-B, 5.00% 2021	1,500	1,601
City of Chicago, Wastewater Transmission Rev. Ref. Bonds, Series 2017-B, 5.00% 2022	1,000	1,090
City of Chicago, Water Rev. Bonds, Series 2004, 5.00% 2023	2,750	3,093
City of Chicago, Water Rev. Ref. Bonds, Series 2012, 4.00% 2022	2,800	2,972
County of Cook, G.O. Rev. Ref. Bonds, Series 2016-A, 5.00% 2021	500	544
County of Cook, G.O. Rev. Ref. Bonds, Series 2016-A, 5.00% 2022	500	555
Educational Facs. Auth., Rev. Bonds (University of Chicago), Series 1998-B, 1.65% 2025 (put 2019)	10,390	10,390
Fin. Auth., National Rural Utilities Cooperative Fin. Corp., Guaranteed Solid Waste Disposal Rev. Bonds (Prairie Power, Inc. Project), Series 2008-A, 1.75% 2042 (put 2020)	3,415	3,387
Fin. Auth., Rev. Bonds (Advocate Health Care Network), Series 2014, 5.00% 2019	550	568
Fin. Auth., Rev. Bonds (Clean Water Initiative Revolving Fund), Series 2013, 5.00% 2019	2,000	2,064
Fin. Auth., Rev. Bonds (Clean Water Initiative Revolving Fund), Series 2017, 5.00% 2023	1,000	1,124
Fin. Auth., Rev. Bonds (Clean Water Initiative Revolving Fund), Series 2017, 5.00% 2029	2,500	2,916
Fin. Auth., Rev. Bonds (Northwestern Memorial Healthcare), Series 2017-B, 5.00% 2057 (put 2022)	2,000	2,237
Fin. Auth., Rev. Bonds (Rush University Medical Center Obligated Group), Series 2009-C, 6.375% 2029 (preref. 2019)	1,000	1,036
Fin. Auth., Rev. Bonds (Rush University Medical Center Obligated Group), Series 2015-A, 5.00% 2019	1,000	1,041
Fin. Auth., Rev. Bonds (Silver Cross Hospital and Medical Centers), Series 2009, 7.00% 2044 (preref. 2019)	2,055	2,169
Fin. Auth., Rev. Ref. Bonds (Advocate Health Care Network), Series 2008-A-1, 5.00% 2030 (put 2020)	2,500	2,612
Fin. Auth., Rev. Ref. Bonds (Advocate Health Care Network), Series 2008-A-3, 5.00% 2030 (put 2019)	2,000	2,049
Fin. Auth., Rev. Ref. Bonds (DePaul University), Series 2013, 5.00% 2018	500	503
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2015-A, 5.00% 2020	2,410	2,571
City of Granite, Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2002-A, AMT, 2.25% 2027 (put 2019)	4,000	4,001
Housing Dev. Auth., Multi Family Housing Rev. Notes (Marshall Field Garden Apartment Homes), Series 2015, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2050 (put 2025)¹	5,525	5,474
Board of Trustees of the Illinois State University, Auxiliary Facs. System Rev. Bonds, Series 2016, Assured Guaranty Municipal insured, 5.00% 2021	2,155	2,288
Metropolitan Pier and Exposition Auth., McCormick Place Expansion Project Rev. Bonds, Series 2002-A, Assured Guaranty Municipal insured, 5.50% 2023	3,620	4,023
Railsplitter Tobacco Settlement Auth., Tobacco Settlement Rev. Bonds, Series 2010, 5.50% 2023 (preref. 2021)	1,090	1,201
Regional Transportation Auth., G.O. Rev. Ref. Bonds, Series 2017-A, 5.00% 2023	5,000	5,602
Regional Transportation Auth., G.O. Rev. Ref. Bonds, Series 2017-A, 5.00% 2028	2,000	2,318

American Funds Short-Term Tax-Exempt Bond Fund — Page 4 of 18

Bonds, notes & other debt instruments Illinois (continued)	Principal amount (000)	Value (000)
Sales Tax Securitization Corp., Sales Tax Rev. Ref. Bonds, Series 2017-A, 5.00% 2022	$2,000	$2,178
Southwestern Illinois Dev. Auth., Health Fac. Rev. Bonds (Memorial Group, Inc.), Series 2013, 7.25% 2036 (preref. 2023)	2,500	3,132
Toll Highway Auth., Toll Highway Rev. Bonds, Series 2014-A, 5.00% 2019	1,500	1,566
Toll Highway Auth., Toll Highway Rev. Ref. Bonds, Series 2013-B, 5.00% 2018	1,750	1,770
Board of Trustees of the University of Illinois, Auxiliary Facs. System Rev. Ref. Bonds, Series 2013-A, 5.00% 2021	1,945	2,079
Board of Trustees of the University of Illinois, Rev. Ref. Certs. of Part., Series 2016-A, 3.00% 2018	1,000	1,001
Board of Trustees of the University of Illinois, Rev. Ref. Certs. of Part., Series 2016-A, 4.00% 2019	1,015	1,038
Village of Volo, Special Service Areas Nos. 3 and 6 (Symphony Meadows/Lancaster Falls Projects), Special Tax Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 3.00% 2019	299	301
United City of Yorkville, Special Service Area Nos. 2005-108 and 2005-109, Special Tax Rev. Ref. Bonds, Series 2016, Assured Guaranty Municipal insured, 3.00% 2020	932	950
		100,450
Indiana 1.88%
Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2001, AMT, 1.75% 2031 (put 2018)	500	500
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2016-A, 5.00% 2019	1,100	1,149
Fin. Auth., Hospital Rev. Ref. Bonds (Indiana University Health Obligated Group), Series 2016-A, 5.00% 2022	2,500	2,809
Fin. Auth., Hospital Rev. Ref. Bonds (Parkview Health), Series 2017-A, 5.00% 2023	1,335	1,522
Health and Educational Facs. Fncg. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2001-A-2, 4.00% 2036 (put 2019)	1,500	1,519
Hobart Building Corp., First Mortgage Bonds, Series 2006, National insured, 6.50% 2029 (preref. 2020)	6,000	6,421
City of Whiting, Environmental Facs. Rev. Bonds (BP Products North America Inc. Project), Series 2008, 1.85% 2044 (put 2019)	1,000	997
City of Whiting, Environmental Facs. Rev. Bonds (BP Products North America Inc. Project), Series 2014, AMT, (SIFMA Municipal Swap Index +75%) 1.69% 2044 (put 2019)¹	2,400	2,405
City of Whiting, Environmental Facs. Rev. Bonds (BP Products North America Inc. Project), Series 2015, AMT, 5.00% 2045 (put 2022)	1,000	1,107
		18,429
Iowa 0.12%
Fin. Auth., Single Family Mortgage Bonds, Series 2015-A, AMT, 3.50% 2040	570	583
Fin. Auth., Single Family Mortgage Bonds, Series 2017-A, 4.00% 2047	560	589
		1,172
Kansas 0.92%
Dept. of Transportation, Highway Rev. Bonds, Series 2004-C-3, (1-month USD-LIBOR x 0.70 + 0.40%) 1.865% 2023¹	5,000	5,014
Dept. of Transportation, Highway Rev. Bonds, Series 2004-C-4, (1-month USD-LIBOR x 0.70 + 0.50%) 1.964% 2024¹	4,000	4,012
		9,026
Kentucky 0.72%
Property and Buildings Commission, Rev. Ref. Bonds (Project No. 90), Series 2008, 5.375% 2023 (preref. 2018)	2,000	2,020
Property and Buildings Commission, Rev. Ref. Bonds (Project No. 112), Series 2016-B, 5.00% 2022	4,500	4,991
		7,011

American Funds Short-Term Tax-Exempt Bond Fund — Page 5 of 18

Bonds, notes & other debt instruments Louisiana 0.63%	Principal amount (000)	Value (000)
Aviation Board, General Airport Rev. Ref. Bonds, Series 2017-D-2, AMT, 5.00% 2021	$400	$428
Aviation Board, General Airport Rev. Ref. Bonds, Series 2017-D-2, AMT, 5.00% 2023	500	555
Citizens Property Insurance Corp., Assessment Rev. Ref. Bonds, Assured Guaranty Municipal insured, Series 2015, 5.00% 2021	1,500	1,627
Local Government Environmental Facs. and Community Dev. Auth., Rev. Ref. Bonds, Series 2017, BAM insured, 5.00% 2024	1,000	1,142
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-Backed Rev. Ref. Bonds, Series 2013-A, 5.00% 2021	2,250	2,421
		6,173
Maine 0.60%
Housing Auth., Mortgage Purchase Bonds, Series 2016-B-1, 3.50% 2046	770	793
Housing Auth., Mortgage Purchase Rev. Ref. Bonds, Series 2013-B, 4.00% 2043	715	739
Housing Auth., Mortgage Purchase Rev. Ref. Bonds, Series 2014-A-1, AMT, 3.25% 2043	465	473
Housing Auth., Mortgage Purchase Rev. Ref. Bonds, Series 2015-E-1, AMT, 3.50% 2035	3,750	3,852
		5,857
Maryland 1.33%
County of Baltimore, Consolidated Public Improvement Bonds, Series 2018, 4.00% 2019	2,000	2,033
Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. Bonds, Series 2014-B, AMT, 3.25% 2044	3,125	3,182
G.O. Bonds, State and Local Facs. Loan of 2009, First Series C, 4.50% 2018 (preref. 2019)	1,000	1,000
County of Montgomery, G.O. Consolidated Public Improvement Bonds, Series 2011-A, 5.00% 2024 (preref. 2019)	900	929
County of Montgomery, Housing Opportunities Commission, Single Family Housing Rev. Bonds, Series 2017-A, 4.00% 2048	940	986
University System, Auxiliary Fac. and Tuition Rev. Ref. Bonds, Series 2017-B, 5.00% 2021	4,500	4,878
		13,008
Massachusetts 2.91%
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System Issue), Series 2012-L, 5.00% 2031 (preref. 2021)	2,000	2,180
Dev. Fin. Agcy., Rev. Bonds (Partners HealthCare System Issue), Series 2017-S, 5.00% 2021	3,000	3,265
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2016-J, AMT, 5.00% 2024	3,000	3,389
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2017-A, AMT, 4.00% 2021	1,000	1,049
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2018-B, AMT, 5.00% 2024	2,145	2,423
Educational Fncg. Auth., Education Loan Rev. Bonds, Series 2014-I, AMT, 5.00% 2021	3,000	3,200
G.O. Bonds, Consolidated Loan, Series 2014-D-2, 1.70% 2043 (put 2022)	1,500	1,475
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 167, 4.00% 2043	790	819
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 169, 4.00% 2044	505	523
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 172, 4.00% 2045	1,000	1,041
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 181, 4.00% 2044	785	819
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 183, 3.50% 2046	805	828
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 160, AMT, 3.75% 2034	300	306
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 162, 2.75% 2041	235	237
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 165, 2.65% 2041	810	815
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 171, 4.00% 2044	570	592
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 177, AMT, 4.00% 2039	3,125	3,252
Housing Fin. Agcy., Single Family Housing Rev. Ref. Bonds, Series 188, AMT, 4.00% 2043	815	856
Port Auth., Rev. Bonds, Series 2017-A, AMT, 5.00% 2019	1,365	1,407
		28,476

American Funds Short-Term Tax-Exempt Bond Fund — Page 6 of 18

Bonds, notes & other debt instruments Michigan 2.70%	Principal amount (000)	Value (000)
Building Auth., Rev. Ref. Bonds (Facs. Program), Series 2015-I, 5.00% 2021	$1,400	$1,516
Fin. Auth., Local Government Loan Program Rev. Bonds (Detroit Water and Sewerage Dept., Sewage Disposal System Rev. and Rev. Ref. Local Project Bonds), Series 2014-C-3, Assured Guaranty Municipal insured, 5.00% 2023	2,500	2,816
Fin. Auth., Local Government Loan Program Rev. Bonds (Detroit Water and Sewerage Dept., Water Supply System Rev. Ref. Local Project), Series 2014-C-7, National insured, 5.00% 2019	575	591
Fin. Auth., Local Government Loan Program Rev. Bonds (Detroit Water and Sewerage Dept., Water Supply System Rev. Ref. Local Project), Series 2014-D-1, Assured Guaranty Municipal insured, 5.00% 2020	500	528
Fin. Auth., Rev. Bonds (Clean Water Initiative Revolving Fund), Series 2012, 5.00% 2018	1,000	1,006
Fin. Auth., Student Loan Rev. Ref. Bonds, Series 25-A, AMT, 5.00% 2018	725	731
County of Genesee, Water Supply System G.O. Limited Tax Rev. Ref. Bonds, Series 2014, BAM insured, 4.00% 2018	420	423
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Trinity Health Credit Group), Series 2008-C, 5.00% 2019	825	861
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Trinity Health Credit Group), Series 2008-C, 5.00% 2020	750	805
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2014, 4.00% 2044	745	775
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2016-B, 3.50% 2047	1,230	1,266
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2017-B, 3.50% 2048	3,555	3,680
Housing Dev. Auth., Single Family Mortgage Rev. Bonds, Series 2018-A, 4.00% 2048	2,700	2,856
Livonia Public Schools School Dist., School Building and Site G.O. Bonds, Series 2016, Assured Guaranty Municipal insured, 5.00% 2019	240	246
Livonia Public Schools School Dist., School Building and Site G.O. Bonds, Series 2016, Assured Guaranty Municipal insured, 5.00% 2020	275	290
Livonia Public Schools School Dist., School Building and Site G.O. Bonds, Series 2016, Assured Guaranty Municipal insured, 5.00% 2021	465	500
City of Royal Oak, Hospital Fin. Auth., Hospital Rev. Ref. Bonds (William Beaumont Hospital Obligated Group), Series 2014-D, 5.00% 2019	500	518
City of Royal Oak, Hospital Fin. Auth., Hospital Rev. Ref. Bonds (William Beaumont Hospital Obligated Group), Series 2014-D, 5.00% 2020	500	532
Strategic Fund, Limited Obligation Rev. Ref. Bonds (Detroit Edison Co. Exempt Facs. Project), Series 1995-CC, 1.45% 2030 (put 2021)	2,600	2,509
County of Wayne, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2010-A, AMT, 5.00% 2018	1,900	1,922
County of Wayne, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2011-A, AMT, Assured Guaranty Municipal insured, 4.00% 2020	1,690	1,769
County of Wayne, Airport Auth., Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2015-G, 5.00% 2020	250	269
		26,409
Minnesota 1.52%
Housing Fin. Agcy., Homeownership Fin. Bonds (Mortgage-Backed Securities Program), Series 2011-G, 4.25% 2035	280	287
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2012-D, 4.00% 2040	435	446
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031	510	516
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-A, 4.00% 2038	805	838
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-C, AMT, 4.00% 2045	6,420	6,697
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-A, AMT, 4.00% 2041	655	680
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2015-E, AMT, 3.50% 2046	695	714
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2016-E, 4.00% 2047	210	219
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2017-E, 4.00% 2048	975	1,028
City of Maplewood, Multi Family Housing Rev. Ref. Bonds (Maple Pond Apartments Project), Series 2018-A, 2.20% 2021 (put 2020)²	1,120	1,124

American Funds Short-Term Tax-Exempt Bond Fund — Page 7 of 18

Bonds, notes & other debt instruments Minnesota (continued)	Principal amount (000)	Value (000)
City of Minneapolis, Multi Family Rev. Bonds (Albright Townhomes Project), Series 2018, 2.00% 2021 (put 2019)	$1,250	$1,252
City of St. Paul, Housing and Redev. Auth., Multi Family Housing Rev. Bonds (Millberry Apartments Project), Series 2018-A, 2.20% 2021 (put 2020)	1,100	1,105
		14,906
Mississippi 0.10%
Dev. Bank, Special Obligation Rev. Ref. Bonds (Harrison County Highway Ref. Project), Series 2013-A, 5.00% 2019	850	862
Home Corp., Single Family Mortgage Rev. Bonds, Series 2009-A-2, 5.00% 2039	95	97
		959
Missouri 0.87%
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (First Place Homeownership Loan Program), Series 2017-B, 3.25% 2047³	1,387	1,391
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2009-C, 4.90% 2036	125	127
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2009-D, 4.80% 2040	180	182
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2009-E-4, 4.25% 2030	250	257
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2014-A, 4.00% 2041	735	765
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2014-B, 4.00% 2040	895	932
Housing Dev. Commission, Single Family Mortgage Rev. Bonds (Special Homeownership Loan Program), Series 2015-B-1, AMT, 4.00% 2045	3,520	3,678
Metropolitan St. Louis Sewer Dist., Wastewater System Improvement and Rev. Ref. Bonds, Series 2017-A, 4.00% 2020	1,130	1,176
		8,508
Montana 0.18%
Board of Housing, Single Family Homeownership Bonds, Series 2012-A-2, AMT, 4.00% 2038	1,030	1,065
Board of Housing, Single Family Mortgage Bonds, Series 2015-B-2, AMT, 3.50% 2042	695	713
		1,778
Nebraska 1.43%
Central Plains Energy Project, Gas Supply Rev. Ref. Bonds, Series 2014, 5.00% 2039 (put 2019)	6,700	6,981
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2013-E, 3.00% 2043	945	955
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2014-A, 3.00% 2044	920	926
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2014-A, 4.00% 2044	575	599
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2015-C, 3.50% 2045	1,865	1,916
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2016-C, 3.50% 2046	455	469
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2018-A, 4.00% 2048	1,100	1,163
Board of Regents of the University of Nebraska, University of Nebraska-Lincoln Student Fees and Facs. Rev. Bonds, Series 2009-A, 5.00% 2022 (preref. 2019)	1,000	1,015
		14,024
Nevada 1.53%
County of Clark, Airport System Rev. Ref. Bonds, Series 2017-A-1, AMT, 4.00% 2019	2,500	2,551
County of Clark, Jet Aviation Fuel Tax Rev. Ref. Bonds, Series 2013-A, AMT, 5.00% 2019	3,020	3,107
County of Clark, Las Vegas-McCarran International Airport, Passenger Fac. Charge Rev. Bonds, Series 2015-C, 5.00% 2021	1,170	1,273
County of Clark, Pollution Control Rev. Ref. Bonds (Southern California Edison Company), Series 2010, 1.875% 2031 (put 2020)	5,500	5,470

American Funds Short-Term Tax-Exempt Bond Fund — Page 8 of 18

Bonds, notes & other debt instruments Nevada (continued)	Principal amount (000)	Value (000)
City of North Las Vegas, Special Improvement Dist. No. 60 (Aliante), Local Improvement Rev. Ref. Bonds, Series 2016, 2.25% 2021	$1,260	$1,257
County of Washoe, Gas Facs. Rev. Ref. Bonds (Sierra Pacific Power Company Projects), Series 2016-A, AMT, 1.50% 2031 (put 2019)	1,255	1,251
		14,909
New Jersey 2.93%
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2014-PP, 5.00% 2019	4,000	4,109
Educational Facs. Auth., Rev. and Rev. Ref. Bonds (Ramapo College of New Jersey Issue), Series 2017-A, Assured Guaranty Municipal insured, 4.00% 2020	1,185	1,236
Educational Facs. Auth., Rev. and Rev. Ref. Bonds (Ramapo College of New Jersey Issue), Series 2017-A, Assured Guaranty Municipal insured, 5.00% 2022	1,000	1,107
Educational Facs. Auth., Rev. and Rev. Ref. Bonds (Ramapo College of New Jersey Issue), Series 2017-A, Assured Guaranty Municipal insured, 5.00% 2023	850	958
Health Care Facs. Fncg. Auth., Rev. Ref. Bonds (Hackensack Meridian Health Obligated Group Issue), Series 2017-A, 5.00% 2023	2,425	2,747
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2012-1-A, AMT, 5.00% 2018	2,000	2,022
Higher Education Student Assistance Auth., Student Loan Rev. Bonds, Series 2016-1-A, AMT, 5.00% 2020	750	799
Higher Education Student Assistance Auth., Student Loan Rev. Ref. Bonds, Series 2014-1-A1, AMT, 5.00% 2018	2,250	2,275
Housing and Mortgage Fin. Agcy., Single Family Housing Rev. Bonds, Series 2018-A, 4.50% 2048	5,000	5,367
Tobacco Settlement Fncg. Corp., Tobacco Settlement Bonds, Series 2018-A, 5.00% 2021	2,000	2,154
Tobacco Settlement Fncg. Corp., Tobacco Settlement Bonds, Series 2018-A, 5.00% 2023	2,500	2,793
Transit Corp., Grant Anticipation Notes (Federal Transit Administration Section 5307 Urbanized Area Formula Funds), Series 2014-A, 5.00% 2018	2,000	2,008
Transportation Trust Fund Auth., Federal Highway Reimbursement Rev. Ref. Bonds, Series 2018-A, 5.00% 2022	1,000	1,087
		28,662
New Mexico 0.92%
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2005-A, 1.875% 2029 (put 2020)	2,000	1,989
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2005-B, 1.875% 2029 (put 2020)	2,250	2,238
City of Farmington, Pollution Control Rev. Ref. Bonds (Southern California Edison Company Four Corners Project), Series 2011, 1.875% 2029 (put 2020)	2,000	1,989
Mortgage Fin. Auth., Single Family Mortgage Program Bonds, Series 2009-D, Class I, 5.35% 2040	255	260
Mortgage Fin. Auth., Single Family Mortgage Program Bonds, Series 2012-A, Class I, 4.25% 2043	540	556
Mortgage Fin. Auth., Single Family Mortgage Program Bonds, Series 2016-A-2, Class I, AMT, 3.50% 2046	945	972
Mortgage Fin. Auth., Single Family Mortgage Program Bonds, Series 2017-B-2, Class I, AMT, 3.75% 2048	885	922
New Mexico Educational Assistance Foundation, Educational Loan Bonds, Series 2010-1, Class A-2, (3-month USD-LIBOR + 0.65%) 2.950% 2028^1,3	20	20
		8,946
New York 8.34%
Dormitory Auth., New York University Rev. Bonds, Series 2009-A, 5.00% 2039 (preref. 2019)	2,250	2,322
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2016-A, 5.00% 2022	2,000	2,238
Dormitory Auth., School Dist. Rev. Bond Fncg. Program Rev. Bonds, Series 2017-F, 5.00% 2023	3,500	3,989
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2014-A, 5.00% 2020	2,000	2,104
Dormitory Auth., State Personal Income Tax Rev. Bonds (General Purpose), Series 2017-B, 5.00% 2023	5,000	5,647
Housing Fin. Agcy., Affordable Housing Rev. Green Bonds, Series 2017-H, 1.65% 2021	1,650	1,632
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-A-2B, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2031 (put 2019)¹	2,500	2,507

American Funds Short-Term Tax-Exempt Bond Fund — Page 9 of 18

Bonds, notes & other debt instruments New York (continued)	Principal amount (000)	Value (000)
Metropolitan Transportation Auth., Dedicated Tax Fund Rev. Ref. Bonds, Series 2008-B-3C, (SIFMA Municipal Swap Index + 0.45%) 1.39% 2034 (put 2019)¹	$2,000	$2,004
Metropolitan Transportation Auth., Transportation Rev. Bond Anticipation Notes, Series 2017-C-1A, 4.00% 2019	1,000	1,014
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-A-1, 4.00% 2019	750	773
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-C, 5.00% 2020	2,000	2,149
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2014-D-2, (SIFMA Municipal Swap Index + 0.45%) 1.39% 2044 (put 2022)¹	4,000	3,998
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2015-A-2, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2039 (put 2020)¹	6,250	6,258
Metropolitan Transportation Auth., Transportation Rev. Ref. Bonds, Series 2002-D-2A, Assured Guaranty Municipal insured, (1-month USD-LIBOR x 0.69 + 0.68%) 2.123% 2032 (put 2021)¹	4,000	4,033
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 178, 3.50% 2043	1,330	1,366
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 191, AMT, 3.50% 2034	2,185	2,226
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 195, 4.00% 2046	2,605	2,720
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 197, 3.50% 2044	905	935
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 200, 3.50% 2045	590	609
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 203, 3.50% 2047	2,450	2,531
Mortgage Agcy., Homeowner Mortgage Rev. Bonds, Series 52, AMT, 3.50% 2030	1,910	1,960
New York City G.O. Bonds, Series 2012-I, 5.00% 2018	1,000	1,000
New York City G.O. Bonds, Series 2014-A, 5.00% 2020	1,500	1,599
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-C-2, 1.70% 2021	5,250	5,206
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2017-G-2-A, 2.00% 2057 (put 2021)	3,000	2,995
New York City Housing Dev. Corp., Multi Family Housing Rev. Bonds (Sustainable Neighborhood Bonds), Series 2018-C-2-A, 2.35% 2022	2,500	2,506
Port Auth., Consolidated Rev. Ref. Bonds, Series 185, AMT, 5.00% 2020	2,000	2,128
Port Auth., Consolidated Rev. Ref. Bonds, Series 186, AMT, 5.00% 2021	2,000	2,182
County of Suffolk, Rev. Ref. Bonds, Series 2017-B, Assured Guaranty Municipal insured, 4.00% 2021	2,500	2,661
Thruway Auth., General Rev. Junior Indebtedness Obligations, Series 2013-A, 5.00% 2019	4,700	4,823
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (Terminal One Group Association, LP Project), Series 2015, AMT, 5.00% 2020	1,500	1,566
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (Terminal One Group Association, LP Project), Series 2015, AMT, 5.00% 2021	750	798
Transportation Dev. Corp., Special Fac. Rev. Ref. Bonds (Terminal One Group Association, LP Project), Series 2015, AMT, 5.00% 2022	1,000	1,084
		81,563
North Carolina 0.85%
Housing Fin. Agcy., Home Ownership Rev. Ref. Bonds, Series 37-A, AMT, 3.50% 2039	1,435	1,473
Housing Fin. Agcy., Home Ownership Rev. Ref. Bonds, Series 38-B, 4.00% 2047	3,355	3,531
University of North Carolina at Chapel Hill, General Rev. Bonds, Series 2012-B, (1-month USD-LIBOR x 0.67 + 0.40%) 1.802% 2041 (put 2022)¹	3,300	3,324
		8,328
North Dakota 0.99%
Housing Fin. Agcy., Homeownership Rev. Bonds (Home Mortgage Fin. Program), Series 2016-D, 3.50% 2046	1,595	1,647
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2012-A, 3.75% 2042	1,380	1,420
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2014-A, 4.00% 2034	305	317

American Funds Short-Term Tax-Exempt Bond Fund — Page 10 of 18

Bonds, notes & other debt instruments North Dakota (continued)	Principal amount (000)	Value (000)
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2015-A, 4.00% 2038	$410	$426
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2015-B, 4.00% 2036	335	349
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2016-B, AMT, 4.00% 2047	4,005	4,183
Housing Fin. Agcy., Housing Fin. Program Bonds (Home Mortgage Fin. Program), Series 2017-D, 4.00% 2048	1,270	1,339
		9,681
Ohio 1.79%
Akron, Bath and Copley Joint Township Hospital Dist., Hospital Facs. Rev. Bonds (Akron General Health System), Series 2012, 5.00% 2031 (preref. 2022)	1,000	1,094
Higher Education G.O. Rev. Ref. Bonds, Series 2017-C, 5.00% 2026	1,000	1,191
Housing Fin. Agcy., Residential Mortgage Rev. Bonds (Mortgage-Backed Securities Program), Series 2016-D, 4.00% 2047	1,200	1,256
Housing Fin. Agcy., Residential Mortgage Rev. Bonds (Mortgage-Backed Securities Program), Series 2016-K, 3.50% 2046	1,350	1,393
Housing Fin. Agcy., Residential Mortgage Rev. Bonds (Mortgage-Backed Securities Program), Series 2017-D, 4.00% 2048	1,900	2,002
Housing Fin. Agcy., Residential Mortgage Rev. Bonds, AMT, Series 2017-B, 4.50% 2047	620	660
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2010-1, 5.00% 2028	280	286
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2011-1, 4.80% 2028	150	155
Kent State University, Rev. General Receipts Bonds, Series 2016, 4.00% 2022	1,000	1,070
Major New State Infrastructure Project Rev. Bonds, Series 2012-1, 4.00% 2018	1,750	1,767
Major New State Infrastructure Project, Rev. Bonds, Series 2016-1, 5.00% 2023	1,000	1,147
Water Dev. Auth., Solid Waste Disposal Rev. Bonds (Waste Management Inc. Project), Series 2002, AMT, 1.70% 2022 (put 2018)	2,500	2,500
Water Dev. Auth., Water Pollution Control Loan Fund Rev. Notes, Series 2017-B, (SIFMA Municipal Swap Index + 0.22%) 1.16% 2020¹	3,000	3,000
		17,521
Oklahoma 0.13%
Municipal Power Auth., Power Supply System Rev. Ref. Bonds, Series 2005-A, (SIFMA Municipal Swap Index + 0.80%) 1.74% 2023 (put 2018)¹	1,280	1,280
Oregon 1.11%
Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2013-C, (SIFMA Municipal Swap Index + 1.00%) 1.94% 2022 (put 2018)¹	3,000	3,002
G.O. Bonds (Veteran’s Welfare Bonds Series 94), Series 2014-H, 4.00% 2044	1,900	1,961
G.O. Bonds (Veteran’s Welfare Bonds Series 99B), Series 2017-Q, 3.50% 2047	2,185	2,263
Housing and Community Services Dept., Mortgage Rev. Bonds (Single Family Mortgage Program), Series 2017-A, 4.00% 2047	2,325	2,450
Port of Portland, Portland International Airport Rev. Bonds, Series 24-B, AMT, 5.00% 2021	1,090	1,181
		10,857
Pennsylvania 3.23%
East Hempfield Township, Industrial Dev. Auth., Rev. Ref. Bonds (Willow Valley Communities Project), Series 2016, 4.00% 2019	450	464
East Hempfield Township, Industrial Dev. Auth., Rev. Ref. Bonds (Willow Valley Communities Project), Series 2016, 4.00% 2020	500	523
Econ. Dev. Fncg. Auth., Unemployment Compensation Rev. Bonds, Series 2012-B, 5.00% 2021	715	722
Econ. Dev. Fncg. Auth., UPMC Rev. Bonds, Series 2017-A, 4.00% 2018	4,780	4,816
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-117-A, AMT, 3.50% 2040	1,335	1,370

American Funds Short-Term Tax-Exempt Bond Fund — Page 11 of 18

Bonds, notes & other debt instruments Pennsylvania (continued)	Principal amount (000)	Value (000)
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2015-118-A, AMT, 3.50% 2040	$5,490	$5,621
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-119, 3.50% 2041	670	689
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2016-120, 3.50% 2046	780	802
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2017-122, 4.00% 2046	2,815	2,949
Housing Fin. Agcy., Single Family Mortgage Rev. Bonds, Series 2017-123-A, AMT, 4.00% 2039	1,500	1,564
County of Montour, Geisinger Auth. Health System Rev. Bonds (Geisinger Health System), Series 2014-B, (1-month USD-LIBOR x 0.67 + 1.07%) 2.457% 2028 (put 2024)¹	3,000	3,059
City of Philadelphia, Airport Rev. and Rev. Ref. Bonds, Series 2017-A, 5.00% 2019	1,200	1,237
City of Philadelphia, Water and Wastewater Rev. Bonds, Series 2017-A, 5.00% 2019	1,000	1,039
Philadelphia School Dist., G.O. Bonds, Series 2016-F, 5.00% 2020	500	531
Philadelphia School Dist., G.O. Bonds, Series 2016-F, 5.00% 2021	500	541
Philadelphia School Dist., G.O. Bonds, Series 2016-F, 5.00% 2022	500	550
City of Pittsburgh, Urban Redev. Auth., Rev. Bonds (Crawford Square Apartments Project), Series 2018, 2.25% 2020 (put 2020)	825	827
Turnpike Commission, Turnpike Rev. Bonds, Series 2014-B-1, (SIFMA Municipal Swap Index + 0.98%) 1.92% 2021¹	1,100	1,117
Turnpike Commission, Turnpike Rev. Bonds, Series 2015-A-2, (SIFMA Municipal Swap Index + 0.80%) 1.74% 2045 (put 2018)¹	1,000	1,001
Turnpike Commission, Turnpike Rev. Bonds, Series 2016, 5.00% 2021	2,000	2,167
		31,589
Rhode Island 1.29%
Commerce Corp., Grant Anticipation Rev. Ref. Bonds (Dept. of Transportation), Series 2016-A, 5.00% 2020	1,990	2,111
Commerce Corp., Grant Anticipation Rev. Ref. Bonds (Dept. of Transportation), Series 2016-A, 5.00% 2021	1,280	1,389
Housing and Mortgage Fin. Corp., Homeownership Opportunity Bonds, Series 66-A-1, 4.00% 2033	2,225	2,308
Housing and Mortgage Fin. Corp., Homeownership Opportunity Bonds, Series 68-C, AMT, 3.50% 2039	945	970
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2016-A, AMT, 5.00% 2018	300	303
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2019	250	260
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2020	200	212
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2021	510	551
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2022	1,300	1,424
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2023	650	723
Student Loan Auth., Student Loan Program Rev. Bonds, Series 2017-A, AMT, 5.00% 2024	2,100	2,346
		12,597
South Carolina 1.25%
Housing Fin. and Dev. Auth., Mortgage Rev. Bonds, Series 2017-A, 4.00% 2047	1,035	1,083
Housing Fin. and Dev. Auth., Mortgage Rev. Bonds, Series 2017-B, 4.00% 2047	315	331
Housing Fin. and Dev. Auth., Mortgage Rev. Bonds, Series 2018-A, 4.50% 2048	1,590	1,718
Housing Fin. and Dev. Auth., Mortgage Rev. Ref. Bonds, Series 2016-A, 4.00% 2036	135	141
County of Lexington, Health Services Dist., Inc., Hospital Rev. Ref. Bonds, Series 2017, 5.00% 2019	250	260
County of Lexington, Health Services Dist., Inc., Hospital Rev. Ref. Bonds, Series 2017, 5.00% 2020	250	265
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2012-A, 4.00% 2020	2,945	3,072
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2015-C, 5.00% 2021	1,500	1,631
Public Service Auth., Rev. Ref. Obligations (Santee Cooper), Series 2015-A, 5.00% 2022	3,395	3,746
		12,247
South Dakota 0.60%
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2013-A, AMT, 3.00% 2030	445	450
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2013-E, AMT, 4.00% 2044	230	238
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2014-E, 4.00% 2044	845	880
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2015-D, 4.00% 2045	925	968

American Funds Short-Term Tax-Exempt Bond Fund — Page 12 of 18

Bonds, notes & other debt instruments South Dakota (continued)	Principal amount (000)	Value (000)
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2016-D, 3.50% 2046	$2,600	$2,683
Housing Dev. Auth., Homeownership Mortgage Rev. Ref. Bonds, Series 2012-A, AMT, 4.50% 2031	645	672
		5,891
Tennessee 1.68%
Housing Dev. Agcy., Homeownership Program Bonds, Series 2012-1-C, 4.50% 2037	530	551
Housing Dev. Agcy., Homeownership Program Bonds, Series 2012-2-C, 4.00% 2038	370	381
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Series 2011-1-A, AMT, 4.50% 2031	885	921
Housing Dev. Agcy., Homeownership Program Rev. Ref. Bonds, Series 2012-1-A, AMT, 4.50% 2038	435	452
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-1-C, 3.00% 2038	880	893
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043	880	911
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-1-A, AMT, 4.00% 2039	1,275	1,321
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-A, AMT, 4.00% 2045	1,025	1,066
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2014-2-C, 4.00% 2045	775	808
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2015-2-A, 4.00% 2046	370	387
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2016-1-B, 3.50% 2047	805	830
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2017-1, 4.00% 2042	1,405	1,478
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2017-B-2, 4.00% 2042	2,505	2,637
Metropolitan Government of Nashville and Davidson County, Health and Educational Facs. Board, Collateralized Multi Family Housing Rev. Bonds (Trevecca Towers II Project), Series 2018, 2.00% 2022 (put 2021)	2,300	2,302
County of Shelby, Health, Educational and Housing Fac. Board, Rev. Bonds (Methodist Le Bonheur Healthcare), Series 2017-A, 5.00% 2022	1,330	1,469
		16,407
Texas 10.40%
Beaumont Independent School Dist., Unlimited Tax Rev. Ref. Bonds, Series 2016, 5.00% 2020	1,280	1,345
Clear Creek Independent School Dist., Unlimited Tax School Building Bonds, Series 2013-B, 3.00% 2032 (put 2019)	5,000	5,066
Cypress-Fairbanks Independent School Dist., Unlimited Tax School Building Bonds, Series 2017-A-3, 3.00% 2043 (put 2020)	2,500	2,553
Cypress-Fairbanks Independent School Dist., Unlimited Tax School Building Bonds, Series 2014-B-3, 1.40% 2040 (put 2020)	750	742
Cypress-Fairbanks Independent School Dist., Unlimited Tax School Building Bonds, Series 2017-A-2, 2.50% 2036 (put 2019)	4,000	4,033
City of Dallas, Waterworks and Sewer System Rev. Ref. Bonds, Series 2008, 5.00% 2027 (preref. 2018)	2,000	2,012
City of Dallas, Waterworks and Sewer System Rev. Ref. Bonds, Series 2016-A, 5.00% 2028	1,240	1,456
Cities of Dallas and Fort Worth, Dallas/Fort Worth International Airport, Joint Rev. Ref. Bonds, Series 2013-E, AMT, 5.00% 2019	2,000	2,082
Cities of Dallas and Fort Worth, Dallas/Fort Worth International Airport, Joint Rev. Ref. Bonds, Series 2013-F, 5.00% 2018	1,000	1,009
Cities of Dallas and Fort Worth, Dallas/Fort Worth International Airport, Joint Rev. Ref. Bonds, Series 2013-F, 5.00% 2019	500	521
City of Denton, Utility System Rev. Bonds, Series 2017, 5.00% 2020	1,000	1,072
City of Denton, Utility System Rev. Bonds, Series 2017, 5.00% 2022	1,000	1,119
Denton Independent School Dist., Unlimited Tax Rev. Ref. Bonds, Series 2015, 5.00% 2026	1,865	2,151
Fort Bend Independent School Dist., Unlimited Tax School Building Bonds, Series 2015-B, 1.35% 2040 (put 2019)	2,000	1,992
County of Harris, Cultural Education, Facs. Fin. Corp., Thermal Utility Rev. Ref. Bonds (Teco Project), Series 2017, 5.00% 2019	350	365
County of Harris, Cultural Education, Facs. Fin. Corp., Thermal Utility Rev. Ref. Bonds (Teco Project), Series 2017, 5.00% 2020	1,150	1,233
County of Harris, Health Facs. Dev. Corp., Hospital Rev. Ref. Bonds (Memorial Hermann Healthcare System), Series 2014-B, (SIFMA Municipal Swap Index + 0.58%) 1.52% 2042 (put 2019)¹	2,000	2,005

American Funds Short-Term Tax-Exempt Bond Fund — Page 13 of 18

Bonds, notes & other debt instruments Texas (continued)	Principal amount (000)	Value (000)
County of Harris, Toll Road Rev. Bonds, Series 2012-B, (SIFMA Municipal Swap Index + 0.70%) 1.64% 2021 (put 2018)¹	$2,500	$2,500
Dept. of Housing and Community Affairs, Single Family Mortgage Rev. Bonds, Series 2017-A, 2.835% 2047³	2,229	2,151
Dept. of Housing and Community Affairs, Multi Family Housing Rev. Bonds (Springs Apartments), Series 2018, 2.23% 2021 (put 2020)²	1,650	1,655
City of Houston, Combined Utility System Rev. Ref. Bonds, Series 2014-C, 5.00% 2020	1,000	1,057
City of Houston, Combined Utility System Rev. Ref. Bonds, Series 2018-C, (1-month USD-LIBOR x 0.70 + 0.36%) 1.811% 2034 (put 2021)¹	5,650	5,655
City of Houston, Combined Utility System, Rev. and Rev. Ref. Bonds, Series 2009-A, Assured Guaranty insured, 5.25% 2033 (preref. 2019)	1,805	1,857
City of Houston, Public Improvement Rev. Ref. Bonds, Series 2017-A, 5.00% 2020	2,850	2,996
Houston Independent School Dist., Limited Tax Schoolhouse Bonds, Series 2014-A-1B, 2.20% 2039 (put 2020)²	1,735	1,746
Love Field Airport Modernization Corp., General Airport Rev. Bonds, Series 2017, AMT, 5.00% 2021	500	545
North Central Texas Health Facs. Dev. Corp., Hospital Rev. Ref. Bonds (Children’s Medical Center of Dallas Project), Series 2012, 5.00% 2018	1,000	1,001
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2011-A, (SIFMA Municipal Swap Index + 0.80%) 1.74% 2050 (put 2019)¹	4,095	4,095
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2012-C, 1.95% 2038 (put 2019)	2,380	2,380
North Texas Tollway Auth., System Rev. Ref. Bonds, Series 2017-A, 5.00% 2019	4,500	4,567
Northside Independent School Dist., Unlimited Tax School Building Bonds, Series 2017, 1.45% 2047 (put 2020)	3,800	3,773
Panhandle Regional Housing Fin. Corp., Multi Family Housing Rev. Bonds (Canyons at 45 West Apartments), Series 2018, 2.00% 2021 (put 2020)²	1,500	1,504
Public Fin. Auth., Texas Southern University, Rev. Fncg. System Bonds, Series 2016, BAM insured, 4.00% 2019	890	906
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2009-A, 5.25% 2024 (preref. 2019)	1,100	1,121
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2012-C, 2.00% 2027 (put 2018)	1,625	1,627
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-A, 2.25% 2033 (put 2019)	9,000	9,065
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, Series 2015-B, 2.00% 2033 (put 2021)	3,040	3,023
County of Tarrant, Cultural Education Facs. Fin. Corp., Hospital Rev. Bonds (Baylor Scott & White Health Project), Series 2016-A, 5.00% 2019	1,000	1,044
County of Tarrant, Cultural Education Facs. Fin. Corp., Hospital Rev. Bonds (Baylor Scott & White Health Project), Series 2016-A, 5.00% 2020	750	801
Board of Regents of the Texas State University System, Rev. Fncg. System Rev. and Rev. Ref. Bonds, Series 2017-A, 5.00% 2022	1,800	1,991
Transportation Commission, Central Texas Turnpike System Rev. Ref. Bonds, Series 2015-A, 5.00% 2042 (put 2020)	2,000	2,102
Transportation Commission, G.O. Mobility Fund Bonds, Series 2014-B, (SIFMA Municipal Swap Index + 0.38%) 1.32% 2041 (put 2018)¹	6,500	6,501
Board of Regents of the University of North Texas System, Rev. Fncg. System Rev. Ref. and Improvement Bonds, Series 2017-A, 5.00% 2022	1,000	1,109
Board of Regents of the University of North Texas System, Rev. Fncg. System Rev. Ref. and Improvement Bonds, Series 2017-A, 5.00% 2023	1,000	1,133
Board of Regents of The University of Texas System, Rev. Fncg. System Rev. Ref. Bonds, Series 2016-I, 5.00% 2019	1,750	1,812
Water Dev. Board, State Water Implementation Rev. Fund, Rev. Bonds (Master Trust), Series 2018-A, 5.00% 2023	1,120	1,282
		101,755

American Funds Short-Term Tax-Exempt Bond Fund — Page 14 of 18

Bonds, notes & other debt instruments Vermont 0.09%	Principal amount (000)	Value (000)
Educational and Health Buildings Fncg. Agcy., Rev. Bonds (The University of Vermont Medical Center Project), Series 2016-A, 4.00% 2020	$750	$786
Student Assistance Corp., Education Loan Rev. Bonds, Series 2012-B, AMT, (3-month USD-LIBOR + 1.50%) 3.843% 2022^1,3	36	37
		823
Virginia 0.88%
Commonwealth Transportation Board, Federal Transportation Grant Anticipation Rev. and Rev. Ref. Notes, Series 2017, 5.00% 2023	3,000	3,426
Commonwealth Transportation Board, Federal Transportation Grant Anticipation Rev. Notes, Series 2013-A, 5.00% 2020	3,000	3,162
County of Fairfax, Industrial Dev. Auth., Health Care Rev. Ref. Bonds (Inova Health System Project), Series 2009-A, 5.00% 2019 (escrowed to maturity)	1,000	1,028
County of Wise, Industrial Dev. Auth., Solid Waste and Sewage Disposal Rev. Bonds (Virginia Electric and Power Co. Project), Series 2009-A, 2.15% 2040 (put 2020)	1,000	1,001
		8,617
Washington 3.07%
Econ. Dev. Fin. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2008, 2.125% 2020⁴	5,000	5,002
Energy Northwest, Electric Rev. Ref. Bonds (Project No. 3), Series 2015-C, 5.00% 2026	500	583
Federal Highway Grant Anticipation Rev. Bonds (SR 520 Corridor Program), Series 2012-F, 5.00% 2018	2,000	2,006
Federal Highway Grant Anticipation Rev. Bonds (SR 520 Corridor Program), Series 2014-C, 5.00% 2018	3,250	3,259
Various Purpose G.O. Bonds, Series 2011-B, 5.25% 2036 (preref. 2021)	2,030	2,205
Various Purpose G.O. Rev. Ref. Bonds, Series 2018-R-C, 5.00% 2021	5,000	5,472
County of Grant, Public Utility Dist. No. 2, Electric System Rev. Ref. Bonds, Series 2017-N, 2.00% 2044 (put 2020)	1,500	1,501
Health Care Facs. Auth., Rev. Bonds (Providence Health & Services), Series 2012-B, 4.00% 2042 (put 2021)	250	266
Health Care Facs. Auth., Rev. Ref. Bonds (PeaceHealth), Series 2014-A, 5.00% 2019	500	521
Health Care Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2012-A, 5.00% 2018	500	503
Health Care Facs. Auth., Rev. Ref. Bonds (Providence Health & Services), Series 2012-B, 5.00% 2042 (put 2021)	2,550	2,787
Housing Fin. Commission, Homeownership Program Bonds, Series 2010-A, 4.70% 2028	150	153
Housing Fin. Commission, Single Family Program Bonds, Series 2014-1-N, 3.00% 2037	875	887
Housing Fin. Commission, Single Family Program Bonds, Series 2014-2A-R, AMT, 3.50% 2044	1,610	1,647
Housing Fin. Commission, Single Family Program Bonds, Series 2017-1-N, 4.00% 2047	905	948
Housing Fin. Commission, Single Family Program Rev. Ref. Bonds, Series 2013-1-N, 3.00% 2043	240	242
City of Seattle, Municipal Light and Power Improvement and Rev. Ref. Bonds, Series 2015-B-1, (SIFMA Municipal Swap Index + 0.68%) 1.62% 2045 (put 2018)¹	1,000	1,001
Port of Seattle, Rev. Ref. Bonds, Series 2015-B, 5.00% 2020	1,000	1,052
		30,035
West Virginia 0.39%
County of Mason, Pollution Control Rev. Bonds (Appalachian Power Company Project), Series 2014-L, 1.625% 2022 (put 2018)	1,250	1,250
County of Monongalia, Building Commission, Ref. and Improvement Rev. Bonds (Monongalia Health System Obligated Group), Series 2015, 5.00% 2020	1,135	1,201
West Virginia University, Improvement Rev. Bonds (West Virginia University Projects), Series 2014-C, (SIFMA Municipal Swap Index + 0.53%) 1.47% 2041 (put 2019)¹	1,375	1,375
		3,826

American Funds Short-Term Tax-Exempt Bond Fund — Page 15 of 18

Bonds, notes & other debt instruments Wisconsin 4.26%	Principal amount (000)	Value (000)
G.O. Bonds, Series 2013-A, 5.00% 2025 (preref. 2022)	$5,000	$5,554
G.O. Bonds, Series 2015-A, 5.00% 2031 (preref. 2023)	5,000	5,686
Health and Educational Facs. Auth., Health Facs. Rev. Bonds (SSM Health Care), Series 2018-B, 5.00% 2038 (put 2023)	2,700	2,972
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-1, 1.375% 2038 (put 2019)	2,150	2,137
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-2, 4.00% 2043 (put 2019)	6,000	6,109
Health and Educational Facs. Auth., Rev. Bonds (Ascension Health Senior Credit Group), Series 2013-B-3, 5.00% 2043 (put 2020)	4,500	4,753
Health and Educational Facs. Auth., Rev. Bonds (St. John’s Communities, Inc.), Series 2009-A, 7.625% 2039 (preref. 2019)	2,000	2,133
Health and Educational Facs. Auth., Rev. Bonds (UnityPoint Health), Series 2014-A, 5.00% 2018	435	440
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2015-A, AMT, 4.00% 2045	2,705	2,792
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2016-A, AMT, 3.50% 2046	5,415	5,563
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2017-C, 4.00% 2048	1,185	1,246
Housing and Econ. Dev. Auth., Home Ownership Rev. Bonds, Series 2018-B, 4.00% 2048	800	843
Public Fin. Auth., Solid Waste Disposal Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2016-A-4, AMT, 2.00% 2033 (put 2021)	1,500	1,473
		41,701
Wyoming 0.19%
Community Dev. Auth., Housing Rev. Bonds, Series 2015-3, 3.00% 2044	330	335
Community Dev. Auth., Housing Rev. Bonds, Series 2015-6, 4.00% 2045	1,415	1,469
		1,804
Total bonds, notes & other debt instruments (cost: $882,948,000)		878,253
Short-term securities 10.38%
State of Arizona, City of Phoenix, Industrial Dev. Auth., Health Care Facs. Rev. Bonds (Mayo Clinic), Series 2014-A, 1.38% 2052¹	7,000	7,000
State of California, Statewide Communities Dev. Auth., Commercial Paper, Series 2008-B, 1.80% 8/14/2018	2,000	2,000
State of Connecticut, Health and Educational Facs. Auth., Rev. Bonds (Yale University Issue), Series 2018-S-2, 1.25% 8/1/2018	1,000	1,000
State of Florida, Health Facs. Auth., Health Facs. Rev. Bonds, Series 2008-A, 1.14% 8/16/2018	2,000	2,000
State of Idaho, Health Facs. Auth., Hospital Rev. Bonds (CHE Trinity Health Credit Group), Series 2013-ID, 1.375% 2048 (put 2018)	1,000	1,000
State of Illinois, Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2009-E-1, JPMorgan Chase LOC, 1.45% 2043¹	1,000	1,000
State of Illinois, Fin. Auth., Demand Rev. Bonds (University of Chicago Medical Center), Series 2010-A, 1.47% 2044¹	2,000	2,000
State of Maryland, Health and Higher Educational Facs. Auth., Rev. Bonds, Series 2018-B, 1.30% 10/3/2018	1,500	1,500
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009, 1.64% 8/2/2018	5,000	5,000
State of Maryland, County of Montgomery, IAM Commercial Paper, Series 2009-B, 1.13% 8/9/2018	2,000	2,000
State of Maryland, County of Montgomery, Rev. Bonds (Trinity Health Credit Group), Series 2013, 1.40% 2041 (put 2018)	1,000	1,000
State of Michigan, Board of Trustees of Michigan State University, IAM Commercial Paper, Series F, 1.95% 6/20/2018	3,000	3,000
State of Michigan, Strategic Fund, Demand Limited Obligation Rev. Bonds (Air Products and Chemicals, Inc. Project), Series 2007, 1.45% 2042¹	18,980	18,980
State of Minnesota, City of Saint Paul, Housing and Redev. Auth., Health Care System Demand Rev. Bonds (Allina Health System), Series 2009-B-1, JPMorgan Chase LOC, 1.51% 2035¹	2,350	2,350
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2009-G, 1.45% 2030¹	1,825	1,825

American Funds Short-Term Tax-Exempt Bond Fund — Page 16 of 18

Short-term securities	Principal amount (000)	Value (000)
State of Mississippi, Business Fin. Corp., Gulf Opportunity Zone Industrial Dev. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 2014-B, 1.52% 2035¹	$2,100	$2,100
State of Missouri, Health and Educational Facs. Auth., Demand Educational Facs. Rev. Bonds (Washington University), Series 2000-B, 1.49% 2040¹	5,000	5,000
State of New York, Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2017-C-2A, 4.00% 5/15/2019	7,300	7,445
State of New York, New York City G.O. Bonds, Fiscal 2014, Series 2013-D-3, 1.50% 2038¹	1,000	1,000
State of New York, New York City G.O. Bonds, Series 2006-L-5, 1.49% 2035¹	1,000	1,000
State of New York, New York City Municipal Water Fin. Auth., Water and Sewer System Second General Resolution Rev. Bonds, Fiscal 2016, Series 2015-AA-1, 1.49% 2048¹	1,000	1,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Bonds, Series 2010-G-5, 1.05% 2034¹	1,500	1,500
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2015-E-3, 1.50% 2045¹	1,000	1,000
State of New York, New York City Transitional Fin. Auth., Future Tax Secured Rev. Ref. Bonds, Series 2016-E-4, 1.50% 2045¹	3,500	3,500
State of New York, New York City Transitional Fin. Auth., Recovery Bonds, Fiscal 2003, Series 2002-1-C, 1.50% 2022¹	2,880	2,880
State of Pennsylvania, Econ. Dev. Fncg. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2013, AMT, 1.80% 2045 (put 2018)^1,5	1,200	1,200
State of Texas, City of Houston, Tax and Rev. Anticipation Notes, Series 2018, 4.00% 6/28/2019	4,000	4,089
State of Texas, Tax and Rev. Anticipation Notes, Series 2017, 4.00% 8/30/2018	12,000	12,026
State of Washington, Central Puget Sound Regional Transit Auth., Sales Tax Improvement Green Bonds, Series 2015-S-2B, (SIFMA Municipal Swap Index + 0.45%) 1.39% 2045 (put 2023)¹	6,150	6,155
Total short-term securities (cost: $101,533,000)		101,550
Total investment securities 100.17% (cost: $984,481,000)		979,803
Other assets less liabilities (0.17%)		(1,616)
Net assets 100.00%		$978,187

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount⁶ (000)	Value at 7/31/2018⁷ (000)	Unrealized depreciation at 7/31/2018 (000)
2 Year U.S. Treasury Note Futures	Long	280	October 2018	$56,000	$59,185	$(101)

¹	Coupon rate may change periodically. For short-term securities, the date of the next scheduled coupon rate change is considered to be the maturity date.
²	Step bond; coupon rate may change at a later date.
³	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
⁴	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $5,002,000, which represented .51% of the net assets of the fund.
⁵	For short-term securities, the mandatory put date is considered to be the maturity date.
⁶	Notional amount is calculated based on the number of contracts and notional contract size.
⁷	Value is calculated based on the notional amount and current market price.

American Funds Short-Term Tax-Exempt Bond Fund — Page 17 of 18


Key to abbreviations and symbol
Agcy. = Agency	Fncg. = Financing
AMT = Alternative Minimum Tax	G.O. = General Obligation
Auth. = Authority	LIBOR = London Interbank Offered Rate
Certs. of Part. = Certificates of Participation	LOC = Letter of Credit
Dept. = Department	Preref. = Prerefunded
Dev. = Development	Redev. = Redevelopment
Dist. = District	Ref. = Refunding
Econ. = Economic	Rev. = Revenue
Fac. = Facility	SIFMA = Securities Industry and Financial Markets Association
Facs. = Facilities	USD/$ = U.S. dollars
Fin. = Finance

Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

333 S. Hope Street, Los Angeles, CA 90071 USA

MFGEFPX-039-0918O-S66137

American Funds Short-Term Tax-Exempt Bond Fund — Page 18 of 18

Report of Independent Registered Public Accounting Firm

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the summary investment portfolios, of American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, The Tax-Exempt Bond Fund of America, American High-Income Municipal Bond Fund, The Tax-Exempt Fund of California and American Funds Tax-Exempt Fund of New York (the "Funds") as of July 31, 2018, the related statements of operations for the year ended July 31, 2018, the statements of changes in net assets for each of the two years in the period ended July 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (included in Item 1 of this Form N-CSR) and the investment portfolios (included in Item 6 of this Form N-CSR) as of July 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended July 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

PricewaterhouseCoopers LLP

Los Angeles, CA

September 13, 2018

We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.

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 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – 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 and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance 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 and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b)	Effective May 28, 2018, the American Funds Short-Term Tax-Exempt Bond Fund’s investment adviser implemented a new fixed income order management, trading, and compliance system. In connection with introducing this new system, additional automated and manual controls were implemented and some existing controls were modified. None of these changes were in response to any identified deficiency or weakness in the American Funds Short-Term Tax-Exempt Bond Fund’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.

(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 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.

	AMERICAN FUNDS SHORT-TERM TAX-EXEMPT BOND FUND

	By /s/ Kristine M. Nishiyama
	Kristine M. Nishiyama, Executive Vice President and Principal Executive Officer

	Date: September 28, 2018

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/ Kristine M. Nishiyama

Kristine M. Nishiyama, Executive Vice President and

Principal Executive Officer

Date: September 28, 2018

By /s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

Date: September 28, 2018

Code of Ethics

The following Code of Ethics is in effect for the Registrant:

The Fund has adopted the following standards in accordance with the requirements of Form N-CSR adopted by the Securities and Exchange Commission pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 for the purpose of deterring wrongdoing and promoting: 1) honest and ethical conduct, including handling of actual or apparent conflicts of interest between personal and professional relationships; 2) full, fair, accurate, timely and understandable disclosure in reports and documents that a fund files with or submits to the Commission and in other public communications made by the fund; 3) compliance with applicable governmental laws, rules and regulations; 4) the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and 5) accountability for adherence to the Code. These provisions shall apply to the principal executive officer or chief executive officer and treasurer (“Covered Officers”) of the Fund.

(1)	It is the responsibility of Covered Officers to foster, by their words and actions, a corporate culture that encourages honest and ethical conduct, including the ethical resolution of, and appropriate disclosure of conflicts of interest. Covered Officers should work to assure a working environment that is characterized by respect for law and compliance with applicable rules and regulations.

(2)	Each Covered Officer must act in an honest and ethical manner while conducting the affairs of the Fund, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Duties of Covered Officers include:

	•	Acting with integrity;
	•	Adhering to a high standard of business ethics; and
	•	Not using personal influence or personal relationships to improperly influence investment decisions or financial reporting whereby the Covered Officer would benefit personally to the detriment of the Fund;

(3)	Each Covered Officer should act to promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with or submits to, the Securities and Exchange Commission and in other public communications made by the Fund.

	•	Covered Officers should familiarize themselves with disclosure requirements applicable to the Fund and disclosure controls and procedures in place to meet these requirements; and
	•	Covered Officers must not knowingly misrepresent, or cause others to misrepresent facts about the Fund to others, including the Fund’s auditors, independent trustees, governmental regulators and self-regulatory organizations.

(4)	Any existing or potential violations of this Code of Ethics should be reported to The Capital Group Companies’ Personal Investing Committee. The Personal Investing Committee is authorized to investigate any such violations and report their findings to the Chairman of the Audit Committee of the Fund. The Chairman of the Audit Committee may report violations of the Code of Ethics to the Board or other appropriate entity including the Audit Committee, if he or she believes such a reporting is appropriate. The Personal Investing Committee may also determine the appropriate sanction for any violations of this Code of Ethics, including removal from office, provided that removal from office shall only be carried out with the approval of the Board.

(5)	Application of this Code of Ethics is the responsibility of the Personal Investing Committee, which shall report periodically to the Chairman of the Audit Committee of the Fund.

(6)	Material amendments to these provisions must be ratified by a majority vote of the Board. As required by applicable rules, substantive amendments to the Code of Ethics must be filed or appropriately disclosed.

American Funds Short-Term Tax-Exempt Bond Fund

333 South Hope Street

Los Angeles, California 90071

(213) 486-9200

CERTIFICATION

I, Kristine M. Nishiyama, certify that:

1.	I have reviewed this report on Form N-CSR of American Funds Short-Term Tax-Exempt Bond Fund;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

	a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 28, 2018

/s/ Kristine M. Nishiyama

Kristine M. Nishiyama, Executive Vice President and

Principal Executive Officer

American Funds Short-Term Tax-Exempt Bond Fund

American Funds Short-Term Tax-Exempt Bond Fund

333 South Hope Street

Los Angeles, California 90071

(213) 486-9200

CERTIFICATION

I, Brian C. Janssen, certify that:

1.	I have reviewed this report on Form N-CSR of American Funds Short-Term Tax-Exempt Bond Fund;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

	a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 28, 2018

/s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

American Funds Short-Term Tax-Exempt Bond Fund

American Funds Short-Term Tax-Exempt Bond Fund

333 South Hope Street

Los Angeles, California 90071

(213) 486-9200

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

KRISTINE M. NISHIYAMA, Executive Vice President and Principal Executive Officer, and BRIAN C. JANSSEN, Treasurer and Principal Financial Officer of American Funds Short-Term Tax-Exempt Bond Fund (the "Registrant"), each certify to the best of his knowledge that:

1)	The Registrant's periodic report on Form N-CSR for the period ended July 31, 2018 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2)	The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Principal Executive Officer	Principal Financial Officer

AMERICAN FUNDS SHORT-TERM TAX-EXEMPT BOND FUND	AMERICAN FUNDS SHORT-TERM TAX-EXEMPT BOND FUND


/s/ Kristine M. Nishiyama	/s/ Brian C. Janssen
Kristine M. Nishiyama, Executive Vice President	Brian C. Janssen, Treasurer

Date: September 28, 2018	Date: September 28, 2018

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to AMERICAN FUNDS SHORT-TERM TAX-EXEMPT BOND FUND and will be retained by AMERICAN FUNDS SHORT-TERM TAX-EXEMPT BOND FUND and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request.

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission.

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Form N-CSR AMERICAN FUNDS SHORT-TER For: Jul 31

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