Washington Mutual Investors Fund
Report to Shareholders
For the Quarter Ended January 31, 1995
The American Funds Group (R)
Fellow Shareholders
Since we last reported to you in November, the nation's economy has
continued to expand, with most sectors showing above-average strength. In
an effort to contain inflation, the Federal Reserve has now raised
short-term interest rates seven times in 12 months. The latest increase, on
February 1, was generally well received in the financial community, as many
investors sensed that the process of boosting short-term rates may now be
near an end. Our own view is that further rate hikes by the Fed are a
distinct possibility even though business activity is likely to proceed at
a more moderate pace in the months ahead.
During the quarter ended January 31, the stock market as a whole
essentially marked time. The unmanaged Standard & Poor's 500 Composite
Index edged up 0.3% with all distributions reinvested. Washington Mutual
did somewhat better, posting a gain of 2.2% on a reinvested basis.
While the major stock indexes in the U.S. traded in a narrow range,
the November-January period actually saw a fair amount of turmoil in the
financial markets. That turmoil flowed chiefly from two events: the
devaluation of the Mexican peso, which depressed stock prices throughout
Latin America, and revelations of heavy losses resulting from the use of
derivative investments in Orange County, California. Because Washington
Mutual's investment policy prohibits ownership of derivatives and non-U.S.
securities, your Fund was not directly affected by either of these
developments.
The Fund's net assets on January 31 were $13.2 billion, about the same
as at the start of the quarter. The portfolio appearing in this report
reflects ownership of securities in 111 companies in 26 industries. The
largest positions were Banking (15.5% of net assets); Health & Personal
Care (13.0%); Telecommunications (12.8%); Electric & Gas Utilities (8.9%);
and Energy Sources (7.9%).
Since November 1, three new names have appeared in the portfolio:
General Mills, NationsBank and Walgreen. Three securities have been
eliminated: ITT, Union Camp and American Cyanamid, which was acquired by
American Home Products.
In recent reports we have commented on the increasing number of
companies represented in the portfolio that have raised their dividends.
This trend continued during the past quarter; 32 new dividend increases
were announced. As a result of the rising income, your Fund's Board of
Directors voted to pay a special dividend of six cents a share last
December, and in January the Board increased the regular quarterly dividend
3.6% to 14 1/2 cents a share from its previous level of 14 cents per share.
We look forward to reporting on our full fiscal year in another three
months. Meanwhile, we would be pleased to hear from members of our
shareholder family with questions or comments.
Cordially,
(signature) (signature) (signature)
Stephen Hartwell James H. Lemon, Jr., Harry J. Lister
Chairman Vice Chairman President
March 3, 1995
The figures in this report reflect past results and were computed without a
sales charge. Share price and return will vary, so you may have a gain or
loss of principal when you sell your shares. Fund shares are not deposits
or obligations of, or insured or guaranteed by, the U.S. government, any
financial institution, the Federal Deposit Insurance Corporation, or any
other agency, entity or person. All investments are subject to certain
risks. For example, those which include common stocks are affected by
fluctuating stock prices. Accordingly, investors should maintain a
long-term perspective.
Washington Mutual Investors Fund
Your Investment Account
As of January 31, 1995
Each $1,000 of Net Assets Represented:
This Which Has Paid
Amount Dividends
Invested In This Company Since
$ 6.46 Aetna Life and Casualty Co. 1934
5.88 Allegheny Power System, Inc. 1935
13.22 Allstate Corp. 1993
2.26 American Electric Power Co., Inc. 1910
13.70 American Express Co. 1870
11.78 American General Corp. 1929
23.29 American Home Products Corp. 1919
16.47 Ameritech Corp. 1984
21.97 Amoco Corp. 1894
2.93 Atlantic Energy, Inc. 1937
6.06 Atlantic Richfield Corp. 1927
13.69 AT&T Corp. 1881
11.41 Banc One Corp. 1968
15.02 Bank of New York Co., Inc. 1785
15.62 BankAmerica Corp. 1968
16.34 Bankers Trust New York Corp. 1904
2.24 Barnett Banks, Inc. 1945
12.39 Bell Atlantic Corp. 1984
5.39 BellSouth Corp. 1984
6.09 Beneficial Corp. 1929
5.40 Boeing Co. 1942
21.80 Bristol-Myers Squibb Co. 1900
1.81 Brooklyn Union Gas Co. 1949
3.08 Browning-Ferris Industries, Inc. 1965
7.98 Carolina Power & Light Co. 1937
2.01 CBS Inc. 1931
10.59 Central & South West Corp. 1947
9.43 Chemical Banking Corp. 1968
9.41 Chevron Corp. 1912
1.87 CINergy Corp. 1940
5.54 Clorox Co. 1967
10.42 Consolidated Edison Co. of New York, Inc. 1885
2.37 Consolidated Natural Gas Co. 1944
7.59 CPC International Inc. 1920
3.38 Dana Corp. 1936
5.09 Deluxe Corp. 1967
5.62 Detroit Edison Co. 1909
4.61 Dominion Resources, Inc. 1925
16.56 E.I. du Pont de Nemours and Co. 1904
1.53 Duke Power Co. 1926
15.79 Dun & Bradstreet Corp. 1934
1.86 Eastman Kodak Co. 1902
4.37 Eaton Corp. 1923
9.60 Exxon Corp. 1882
6.17 First Chicago Corp. 1936
10.13 First Union Corp. 1989
7.56 Gannett Co., Inc. 1929
16.79 General Electric Co. 1899
13.02 General Mills, Inc. 1928
20.81 GTE Corp. 1936
9.40 Household International, Inc. 1926
10.63 Houston Industries Inc. 1922
10.79 International Paper Co. 1946
4.41 Johnson & Johnson 1934
3.60 Johnson Controls, Inc. 1901
2.52 Kansas City Power & Light Co. 1950
4.67 Kerr-McGee Corp. 1937
20.23 Eli Lilly and Co. 1885
7.20 Lincoln National Corp. 1920
1.72 Marsh & McLennan Co., Inc. 1923
2.30 Masco Corp. 1936
3.10 Maytag Corp. 1946
3.33 McGraw-Hill, Inc. 1937
2.10 McKesson Corp. 1962
6.65 Melville Corp. 1916
18.62 Merck & Co., Inc. 1935
10.86 Minnesota Mining and Manufacturing Co. 1916
13.33 Mobil Corp. 1902
13.74 Monsanto Co. 1925
13.93 J.P. Morgan & Co. Inc. 1892
8.83 National City Corp. 1972
1.76 NationsBank Corp. 1968
3.22 NBD Bancorp, Inc. 1935
16.62 Norfolk Southern Corp. 1901
4.09 Northeast Utilities 1927
4.55 Norwest Corp. 1939
4.79 NYNEX Corp. 1984
2.30 Pacific Gas and Electric Co. 1912
17.88 Pacific Telesis Group 1984
4.26 PECO Energy Co. 1928
1.12 PepsiCo, Inc. 1921
9.74 Pitney Bowes, Inc. 1934
9.09 PNC Bank Corp. 1865
1.60 PPG Industries, Inc. 1899
1.28 Puget Sound Power & Light Co. 1943
9.72 Raytheon Co. 1964
3.88 SCEcorp. 1910
2.38 Schering-Plough Corp. 1952
.92 Scott Paper Co. 1915
4.56 Southwestern Bell Corp. 1984
7.02 Sprint Corp. 1939
3.84 St. Paul Companies, Inc. 1968
9.26 SunTrust Banks, Inc. 1985
3.55 Tambrands Inc. 1941
13.27 Texaco Inc. 1903
2.53 Thomas & Betts Corp. 1934
9.81 Times Mirror Co. 1892
3.72 TRW Inc. 1936
1.88 Unicom Corp. 1890
19.44 United Technologies Corp. 1936
.99 Unocal Corp. 1916
11.60 Upjohn Co. 1959
24.55 U S WEST, Inc. 1984
2.19 VF Corp. 1941
9.36 Wachovia Corp. 1936
2.16 Walgreen Co. 1899
21.56 Warner-Lambert Co. 1926
8.37 Wells Fargo & Co. 1936
3.31 Westvaco Corp. 1899
6.13 WMX Technologies, Inc. 1975
23.47 Xerox Corp. 1930
Stocks in initial period of acquisition - $37.71
Excess of United States Treasury bills, cash, and receivables
over payables - $34.16
On January 31, 1995 the Fund's net asset value per share
was $17.56, and net assets were $13,186,330,129
Each $1,000 of Net Assets Was Invested In These Industries:
Energy
Energy Sources $ 79.30
Utilities: Electric & Gas 88.72
Materials
Building Materials & Components 2.30
Chemicals 31.90
Forest Products & Paper 15.02
Capital Equipment
Aerospace & Military Technology 34.56
Data Processing & Reproduction 23.47
Electrical & Electronics 16.79
Electronic Components 2.53
Electronic Instruments 3.60
Industrial Components 11.47
Consumer Goods
Appliances & Household Durables 3.10
Beverages 1.12
Food & Household Products 26.14
Health & Personal Care 129.55
Recreation & Other Consumer Products 1.86
Textiles & Apparel 2.19
Services
Broadcasting & Publishing 22.71
Business & Public Services 39.83
Merchandising 8.81
Telecommunications 127.56
Transportation: Rail 16.62
Finance
Banking 154.71
Financial Services 29.19
Insurance 44.22
Multi-Industry
Multi-Industry 10.86
Stocks in initial period of
acquisition 37.71
Excess of United States
Treasury bills, cash, and
receivables over payables 34.16
This report is for the information of shareholders of Washington Mutual
Investors Fund, but it may also be used as sales literature when preceded
or accompanied by the current prospectus, which gives details about
charges, expenses, investment objectives and operating policies of the
Fund. If used as sales material after March 31, 1995, this report must be
accompanied by an American Funds Group Statistical Update for the most
recently completed calendar quarter.
Washington Mutual Investors Fund
Directors
Stephen Hartwell (Chairman)
James H. Lemon, Jr. (Vice Chairman)
Cyrus A. Ansary
John A. Beck
Harry J. Lister
James C. Miller III
Thomas J. Owen
Jean Head Sisco
T. Eugene Smith
Margita E. White
Stephen G. Yeonas
Advisory Board
Mary K. Bush
Daniel J. Callahan III
Vernon W. Holleman, Jr.
William B. Snyder
Leonard P. Steuart II
Robert F. Tardio
W. Reid Thompson
Directors Emeritus
Bernard J. Nees (Chairman Emeritus)
Charles T. Akre
Nathan A. Baily
Frank M. Ewing
Henry W. Herzog
For information about your account or any of the Fund's services, please
contact your securities dealer or financial planner, or call the Fund's
transfer agent, toll-free, at 800/421-0180.
Office of the Fund and the Business Manager
Washington Management Corporation
1101 Vermont Avenue, NW
Washington, DC 20005
202/842-5665
Investment Manager
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1443
135 South State College Blvd.
Brea, CA 92621-5804
Counsel
Thompson, O'Donnell, Markham, Norton & Hannon
805 Fifteenth Street, NW
Washington, DC 20005
Custodian
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, NY 10081-0001
Transfer Agent
American Funds Service Company
P.O. Box 2205
Brea, CA 92622-2205
P.O. Box 659522
San Antonio, TX 78265-9522
P.O. Box 2280
Norfolk, VA 23501-2280
P.O. Box 6007
Indianapolis, IN 46206-6007
Principal Underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1462
WMIF-012-0395
