Washington Mutual Investors Fund
1995 Annual Report
[Photo Caption]
Front Cover:
A picture of the inside of the U.S. Capitol Rotunda dome and the fresco
The Apotheosis of George Washington. The fresco was created and painted by
Constantino Brumidi in 1865. It took 11 months to complete, covers an area
of 4,664 square feet and is located 180 feet above the Rotunda floor.
[End Photo Caption]
[Side Bar]
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the total returns and average annual compound
returns with all distributions reinvested for periods ended March 31, 1995
(the most recent calendar quarter), assuming payment of the 5.75% maximum
sales charge at the beginning of the stated periods-10 years: +251.23%, or
+13.39% a year; 5 years: +57.80%, or +9.55% a year; 12 months: +9.32%.
Sales charges are lower for accounts of $50,000 or more. Fund results
through August 1988 do not reflect service and distribution expenses now
paid under its Plan of Distribution. Such expenses may not exceed 0.25% of
the Fund's average net assets per year and currently amount to
approximately 0.21%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. 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, i-
nvestors should maintain a long-term perspective.
[End Side Bar]
Fellow Shareholders
We are happy to report that Washington Mutual continued to make solid
progress in the fiscal year ended April 30. Assets reached an all-time high
of $14.4 billion at year-end, and the number of shareholder accounts
exceeded one million.
The fiscal year closed on a strong note, with both the stock market and the
Fund's share value rising sharply. In the final quarter, the value of your
holdings increased 8.3% with all distributions taken in shares; for the 12
months, the gain was 17.0%. For the same 12 months, the unmanaged Standard
& Poor's 500 Composite Index posted a similar increase of 17.4% including
reinvestment.
More than 60% of all companies represented in the Fund's portfolio raised
their dividends during fiscal 1995. As a result, Washington Mutual's Board
of Directors was able to increase the Fund's March dividend to 14 1/2 cents
a share from the previous level of 14 cents.
In our most recent quarterly report, we took note of the turmoil resulting
from Orange County, California's bankruptcy, which was caused by highly
leveraged investments in derivative securities. The bankruptcy, of course,
had a very adverse effect on the value of bonds issued by the county.
Additional derivative losses continue to be reported by other institutions,
both public and private. So far, such losses have not been of a sufficient
magnitude to disturb the stock and bond markets. However, foreign financial
markets were affected by the failure of Britain's Barings Bank and even
more so by the December devaluation of the Mexican peso. Fortunately, your
Fund has not been directly affected by these developments since it holds no
Orange County bonds or derivatives or non-U.S. securities. Washington
Mutual holds only common stocks and securities convertible into common
stock.
Another headline-making event during the fiscal year was the steep decline
of the U.S. dollar, which is making American products cheaper and therefore
easier to sell abroad. A weakened dollar tends to help U.S. companies that
are heavy exporters or which have foreign earnings in countries with strong
currencies. Several of Washington Mutual's holdings are benefiting from the
dollar's slide.
The seven increases in short-term interest rates initiated by the Federal
Reserve Board since early 1994 have produced the desired slowdown in the
economy. While a resurgence of rapid growth and further rate hikes cannot
be ruled out, the current expectation among most investors is for further
economic expansion at a modest pace.
Reflecting the Fund's steady growth, a number of new names were added to
the portfolio during the February-April quarter. They include AlliedSignal,
ALLTEL, CIGNA, Comerica, Cox Communications, Federal National Mortgage,
Fleet Financial Group, Kimberly-Clark, J.C. Penney, Student Loan Marketing,
Union Pacific and Winn-Dixie Stores. Two names were eliminated during the
period: NBD Bancorp and Scott Paper.
We invite your attention to a special report entitled "Looking after your
interests" which begins on page 6. It describes how Washington Mutual's
independent directors monitor the Fund's operations. The report summarizes
the experience and qualifications of these directors, their functions and
the role of several of the Fund's standing committees.
As always, we welcome questions and comments from our shareholders.
Cordially,
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman Vice Chairman President
June 2, 1995
[Photo Caption]
Seated left to right: Lemon, Hartwell. Standing: Lister
[End Photo Caption]
Investment Manager's Report
[Photo Caption]
Washington
Mutual
Investors
Fund
Portfolio
Counselors
Timothy D. Armour
Stephen E. Bepler
James K. Dunton
Gregg E. Ireland
James B. Lovelace
Janet A. McKinley
Robert G. O_Donnell
James F. Rothenberg
[End Photo Caption]
Fiscal 1995 began last spring with interest rates rising and stock prices
declining slightly and trading in a narrow range. That situation changed
abruptly in early November. Despite widespread concern about inflation at
that time, long-term interest rates turned down, and investor sentiment
improved dramatically after the election, reflecting fresh hopes that the
newly elected Congress would deal effectively with the budget deficit and
take other actions beneficial to the financial markets.
As the fiscal year drew to a close, the stock market was showing
considerable strength. The major indexes were hitting new highs (and they
continued to do so after April 30). The 12-month gain posted by the S&P
500-17.4% including reinvestment-was quite large. Even more surprising was
the 12.8% gain in the January-April period, an unusually big move for this
stage of the market cycle. After all, it has been 55 months since the S&P
500 has experienced a correction of 10% or more. Until now, the longest
interval between such corrections was 37 months, and the average is 18
months. By historical standards, then, the current bull market is clearly
in a very mature phase.
Washington Mutual, which pursues a policy of being at least
95% invested, has benefited fully from this latest upswing. Our total
return of 17.0% for the 12 months compares very favorably with the 12.0%
return recorded by the average of 368 growth and income funds tracked by
Lipper Analytical Services. Washington Mutual ranked in the top 9% of its
universe for this period (30th of 368 funds). Lipper rankings do not
reflect the effects of sales charges.
Your Fund also has done well relative to the vast majority of its peers
over longer spans. For the ten years ended April 30, it was in the top
quintile (20th out of 109 growth and income funds). For the five years
ended April 30, it ranked 55th out of 186 growth and income funds. For the
35 years ended April 30 (the longest period for which Lipper comparisons
are available) it was in the top 14%, ranking sixth among 45 similar funds
in existence throughout that time.
Washington Mutual aims to distribute a quarterly dividend which provides a
return somewhat above the return of the S&P 500. To help us achieve this
goal, we typically include in the portfolio a number of income-producing
stocks such as banks and utilities. However, in the past year many of those
stocks were adversely affected by high interest rates. In addition, utility
issues were hurt by increased competitive pressures severe enough so that
it seemed advisable to trim back our utility holdings. In light of the
difficulties experienced by so many of our income-oriented investments, the
Fund's results for the year are especially gratifying.
The portfolio which begins on page 14 shows how the Fund's assets were
diversified at fiscal year-end. Banking remains our largest industry
position, with 15.5% of net assets, followed by Telecommunications (13.1%),
Health & Personal Care (12.7%) and Energy Sources (7.8%). Our five largest
individual investments on April 30 were US West, American Home Products,
Pacific Telesis, Amoco and Xerox.
We will continue to rely on our organization's strong research capabilities
to uncover investment opportunities that meet Washington Mutual's strict
standards. Those standards were established over four decades ago to assure
a combination of quality, value and fundamental strength. This discipline
has helped the Fund weather all kinds of investment conditions in the past,
and we believe it will continue to do so in the future.
[Chart Caption]
Growth of a $10,000 investment over the lifetime of the Fund
Chart covers the period from the Fund's inception (July 31, 1952) to April
30, 1995. Chart and table assume reinvestment of all distributions and
payment of the 5.75% maximum sales charge at the beginning of the stated
periods. Sales charges are lower for accounts of $50,000 or more. Past
results are not predictive of future results. The indexes are unmanaged and
do not reflect sales charges, commissions or expenses. The Consumer Price
Index is computed from data supplied by the U.S. Department of Labor,
Bureau of Labor Statistics.
[End Chart Caption
[Chart Caption]
The Fund's Long-Term Results
How a $10,000 investment in Washington
Mutual Investors Fund has grown
This chart shows how a $10,000 investment grew between July 31, 1952, when
the Fund began operations, and April 30, 1995.
As you can see, that $10,000 investment in Washington Mutual, with all
distributions reinvested, would have grown to $1,730,691. Over the same
period, that $10,000 would have grown to $1,049,053 in the unmanaged
Standard & Poor's 500 Composite Index of U.S. common stocks and to $92,298
in the average savings institution<F5> with dividends reinvested or
interest compounded.
The year-by-year progress of the $10,000 investment is summarized in the
table below the chart. You can use those figures to estimate how the value
of your own holdings has grown. Let's say, for example, that you have been
reinvesting all your distributions and want to know how your investment has
done since April 30, 1985. At that time, according to the table, the value
of the investment illustrated here was $452,497. Since then it has gone up
nearly fourfold to $1,730,691. Thus, in the same 10-year period, the value
of your 1985 investment - regardless of its size - has also almost
quadrupled.
[FN]
<F1>Results reflect payment of the maximum sales charge of 5.75% on the
$10,000 investment. Thus, the net amount invested was $9,425. As outlined
in the prospectus, the sales charge is reduced for larger investments of
$50,000 or more. There is no sales charge on dividends or capital gain
distributions that are reinvested in additional shares. Results shown do
not take into account income or capital gain taxes.
<F2> Capital Value includes capital gain distributions of $108,901, but
does not reflect income dividends of $141,547 taken in cash.
<F3> Total Value includes reinvested income dividends of $545,390 and
reinvested capital gain distributions of $399,745.
<F4> Since the Fund's inception on July 31, 1952.
During the period illustrated, stock prices fluctuated and were higher at
the end than at the beginning. These results should not be considered as a
representation of the results which may be realized from an investment made
in the Fund today.
<F5> Based on figures, supplied by the U.S. League of Savings Institutions
and the Federal Reserve Board, that reflect all kinds of savings deposits,
including longer term certificates. Unlike investments in the Fund, such
deposits are insured and, if held to maturity, offer a guaranteed return of
principal and a fixed rate of interest, but no opportunity for capital
growth. Maximum allowable interest rates were imposed by law until 1983.
[/FN]
[End Chart Caption]
Looking after your interests . . .
From the beginning of 1990 to the end of 1994, shareholder investments in
mutual funds displayed unprecedented growth. Mutual fund assets increased
by nearly 1.3 trillion dollars, an amount greater than that attained over
the entire prior history of the mutual fund industry. As a result of this
phenomenal growth, mutual funds have received increased attention from the
media, the public and the regulators.
At a recent speech to mutual fund directors, SEC Chairman Arthur Levitt
emphasized that independent directors are on the front line for their
shareholders and stated, "38 million Americans who invest in mutual funds
are counting on you to look after their interests." Chairman Levitt's
remarks place renewed focus on the importance of the independent director.
Since all of Washington Mutual's independent Directors have been associated
with the Fund throughout this period of extraordinary growth, we would like
to take this opportunity for you to become more familiar with them and have
them share their thoughts regarding some of their responsibilities...
[Side Bar]
T. Eugene Smith
Mr. Smith is the President of T. Eugene Smith Inc. He has served as a
Director and Executive Vice President of First & Merchants Corporation and
First & Merchants Bank and as a Director of the Metropolitan Washington
Airports Authority and a member of the Governor of Virginia's Council of
Economic Advisers.
He is a member of the CSX Corporation's Realty Advisory Board and a
Director of Port Royal, Inc., J. Webb, Inc., MGT Realty Advisors, The
Growth Fund of Washington, The Tax-Exempt Fund of Maryland and The
Tax-Exempt Fund of Virginia.
Mr. Smith has been a Director of Washington Mutual since 1987 and is a
member of the Audit Committee, Contracts Committee and the Nominating
Committee. He represents the Fund as an alternate member of the Review and
Advisory Committee of the Fund's shareholder servicing agent.
[End Side Bar]
Q What are the Directors' responsibilities regarding the selection and
retention of the Fund's portfolio securities?
A Mr. Smith:
"The Board of Directors, on behalf of the Fund, has retained the services
of Capital Research and Management Company to provide the day-to-day
investment management of the Fund's portfolio assets in accordance with the
investment restrictions and objective of the Fund. While it is the
responsibility of the Board to establish the Fund's investment restrictions
and objective, these may only be changed by majority approval of the Fund's
shareholders. However, the Board's responsibility is to review the
investment actions and procedures of the investment manager. The Fund's
basic investment policy mandates adherence to its investment standards,
which include strict criteria that must be met before any company can have
its stock included in the Fund's eligible list of investments. The
investment manager must select stocks exclusively from the eligible list.
The Fund's investment standards are periodically reviewed by the Board to
determine the need for possible modifications. The Board also approves all
additions and deletions to the Fund's eligible list, which is carefully
screened on a monthly basis by the Fund's investment manager. Any security
owned by the Fund and subsequently deleted from its eligible list must be
sold within six months. In addition, the Board monitors the Fund's fully
invested policy to determine that at all times the Fund's cash equivalents
do not exceed 5% of the Fund's total capital assets."
[Side Bar]
James C. Miller III
Mr. Miller is Counsellor to Citizens for a Sound Economy and Co-Chairman of
the Tax Foundation. He has served as the Director of the Office of
Management and Budget (a member of President Reagan's Cabinet) and Chairman
of the Federal Trade Commission.
He is a Director of Atlantic Coast Airlines, Inc., Goulds Pumps, Inc. and
The Union Corporation, a special advisor to Capital Economics, a consultant
to UBS Management Assets, Inc. and a senior fellow of the Hoover
Institution at Stanford University.
Mr. Miller was a member of Washington Mutual's Advisory Board from 1989 to
1992 when he became a Director. He serves as a member of the Contracts
Committee and the Nominating Committee.
[End Side Bar]
Q What is the function of the Fund's Advisory Board?
A Mr. Miller:
"Having been a member of the Fund's Advisory Board before becoming a member
of the Board of Directors, I can speak from personal experience. The
Advisory Board is presently composed of seven members, each bringing to the
Fund a wealth of many years of business and related experience. Members of
the Advisory Board are selected by the Fund's Board of Directors following
a review of the candidates with management. The Advisory Board meets with
the Fund's investment manager twice a year, at approximately six-month
intervals. At each meeting, the Board reviews, with the investment manager,
the number of portfolio holdings that should be held by the Fund for the
current period and the general diversification range that the Fund should
maintain within each of the approximately 33 financial, industrial and
service segments that compose the Fund's eligible list of investments. For
each meeting, the manager prepares a report of its recommendations and
discusses with the Board the various considerations which have resulted in
those recommendations. Following the discussion of the report with the
manager, the Advisory Board then presents its finalized recommendations to
the Board of Directors for approval. In addition to those responsibilities,
from time to time, members of the Advisory Board are called upon for their
views on economic, political, or industry events which might affect the
Fund's diversification posture."
[Side Bar]
Jean Head Sisco
Mrs. Sisco is a partner in Sisco Associates. She has served as an executive
in the retailing industry and as a consultant for Government and Public
Affairs with the American Retail Federation.
She is a Director of Textron, Santa Fe Pacific Corporation, Chiquita Brands
International, The Neiman Marcus Group, The Tax-Exempt Fund of Maryland,
The Tax-Exempt Fund of Virginia and several other corporations. She is also
Chairman of the National Association of Corporate Directors.
Mrs. Sisco has been a Director of Washington Mutual since 1976 and is
Chairman of the Audit Committee, a member of the Contracts Committee and
the Nominating Committee and represents the Fund on the Review and Advisory
Committee of the Fund's shareholder servicing agent.
[End Side Bar]
Q What are the duties of the Fund's Audit Committee?
A Mrs. Sisco:
"The Audit Committee is composed of four independent Directors. In
addition, the Fund's independent counsel attends its meetings to advise the
Committee, as needed. The Committee meets annually, following the
completion of the Fund's audited fiscal-year financials, and is responsible
for overseeing the Fund's financial reporting process. The Committee has
the authority to meet more frequently if necessary. The Committee inquires
into matters affecting the Fund's financial reports such as accruals,
pricing, accounting methods, data processing systems, potential risks and
uncertainties and the internal control procedures of management. The
Committee meets with a partner of the independent accounting firm that
conducted the Fund's audit. This meeting is held in both open and executive
session and reviews the procedures followed as well as any significant
problems or concerns encountered since the last audit. The Fund's
independent accountants also have the authority to contact the Committee
directly on any urgent matters that might arise between meetings. At its
annual meeting, the Committee reviews the independent accountant's plan for
the next annual audit, required or anticipated changes in accounting
procedures and the accountant's estimated expenses for the coming year.
Following its meeting, the Committee presents its recommendations on the
engagement of the independent accountants to the full Board of Directors
for approval."
[Side Bar]
Thomas J. Owen
Mr. Owen is a consultant specializing in management and corporate finance.
He has served as Chairman of Perpetual Financial Corporation and is a Past
President of the Greater Washington Board of Trade.
He is a former Director of Washington Gas Light Company, Union First
National Bank, Acacia Mutual Life Insurance Company, B.F. Saul Real Estate
Investment Trust and Ticor Mortgage Insurance Company.
Mr. Owen has been a Director of Washington Mutual since 1983 and is
Chairman of the Proxy Voting Procedures Committee and a member of the
Contracts Committee and the Nominating Committee.
[End Side Bar]
Q How does the Fund handle proxy voting for its portfolio securities?
A Mr. Owen:
"In 1984, the Board appointed an ad hoc committee composed of all of the
independent Directors to develop a policy governing the voting of proxies.
Later that year, the Fund's Board, acting on the ad hoc committee's
recommendations, established the Committee on Proxy Voting Procedures. The
Committee is composed of two Directors, one of whom is an independent
Director. In accordance with the Committee's procedures, except for unusual
situations, Fund management votes proxies in support of corporate
management's position on directors, auditors and other general corporate
matters as well as in support of corporate management regarding shareholder
resolutions proposed by special interest groups. Management is also
directed to vote against proposals for staggered boards and against
defensive measures in opposition to takeovers. The procedure also requires
management to vote in support of provisions requiring that an identical
price be paid to all shareholders, and to support measures requiring no
more than a 60% favorable takeover vote. In the event of a proxy contest,
or where management has reason to question the corporation's
recommendations, such issues may be referred to the Proxy Voting Procedures
Committee for its recommendation. The Committee generally meets once a year
with management to review the Fund's policy on voting, and, if it deems
necessary, to recommend changes to the Fund's Board."
[Side Bar]
Cyrus A. Ansary
Mr. Ansary is President of Investment Services International Co. He has
served as senior partner in the practice of corporate law, as Chairman of
the Board of Trustees of The American University, and as a Director/Trustee
of several national and international organizations.
He is a Director of First Federal Savings Bank of Indiana, Caspian
Enterprises, Inc., Maco Bancorp, Inc., Elizabethtown Broadcasting Company,
The Growth Fund of Washington, The Tax-Exempt Fund of Maryland and The
Tax-Exempt Fund of Virginia.
Mr. Ansary has been a Director of Washington Mutual since 1983 and is
Chairman of the Contracts Committee and the Nominating Committee and
a member of the Audit Committee.
[End Side Bar]
Q What actions does the Board take regarding the annual renewal of the
Fund's investment management agreement?
A Mr. Ansary:
"The Board has appointed a Contracts Committee comprised of all of the
independent Directors, with the Fund's independent counsel as its adviser.
This Committee generally meets twice each year. Its first meeting is with
an independent consultant, and over the past several years this consultant
has been A. Michael Lipper and his associates at Lipper Analytical
Services. Mr. Lipper provides the Committee with a detailed comparative
report on the Fund's performance and expenses and an assessment of their
reasonableness. This report covers both investment and business management
services. The second meeting is with the Fund's investment manager. At this
meeting specific information, requested from management by the Committee,
is reviewed. This information is intended to provide the Committee with a
clear and current understanding of five major factors. First, the nature of
the service rendered by the manager. Second, the general quality of its
service. Third, the overall profitability of the Fund to the manager.
Fourth, the financial stability and strength of the manager. And finally,
whether economies of scale are realized by the manager and shared with the
Fund. The recommendations of the Committee are then reported to the full
Board for approval. I would like to add that, over the years, the Committee
has continually found that not only has the Fund provided shareholders
excellent performance and service, but it also has been operated at a
reasonable cost in comparison with most of its peers."
[Side Bar]
Stephen G. Yeonas
Mr. Yeonas is the Chairman and Chief Executive Officer of the Stephen G.
Yeonas Company. In 1946, he founded and served as President (1946-1973) of
the Yeonas Company, the largest builder of new homes in the Washington,
D.C. metropolitan area for many years. He is a member of the National
Association of Home Builders Hall of Fame.
He is a Director of Washington Gas Light Company, The Tax-Exempt Fund of
Maryland and The Tax-Exempt Fund of Virginia.
Mr. Yeonas has been a Director of Washington Mutual since 1984 and is a
member of the Audit Committee, Contracts Committee and the Nominating
Committee.
[End Side Bar]
Q What matters are discussed at Board of Directors meetings?
A Mr. Yeonas:
"The Fund's Directors meet eight times a year for regularly scheduled Board
meetings. Our agenda covers numerous items, including a detailed report of
the Fund's financial condition which we receive about a week prior to each
meeting. This report reviews the Fund's current statements of assets,
liabilities, income and expenses. There is also a report of any changes
required to be made to the Fund's eligible list of investments. A report is
made by the Fund's investment manager that covers all portfolio
transactions by the Fund since the last meeting, including a discussion of
its general investment program and strategies. At various times during the
year a variety of different matters receives the Board's attention. For
example, on a quarterly basis the Board carefully reviews the Fund's
distribution plan expenditures. The Board also reviews the Fund's
accumulated net income and the recommendations of the investment manager
and management prior to declaring each quarterly dividend. It reviews and
takes action on committee reports. It establishes procedures and monitors
their effectiveness. The Board receives periodic reports from management
regarding such matters as marketing plans of the Fund's national
distributor, and any changes proposed for shareholder servicing operations.
Management also briefs the Board on current concerns and proposals of the
SEC and other regulatory bodies that might affect or change Fund
procedures."
[Side Bar]
Margita E. White
Mrs. White is President of the Association for Maximum Service Television.
She has served in government as a Commissioner of the Federal
Communications Commission, Director of the White House Office of
Communications and Assistant Press Secretary to President Ford.
She is a Director of ITT Corp., ITT Sheraton Corp., ITT
Educational Services Corp., Caesars World, Inc., Leitch Technology Corp.
and The Growth Fund of Washington.
Mrs. White has been a Director of Washington Mutual since 1987 and is a
member of the Contracts Committee and the Nominating Committee.
[End Side Bar]
Q How can one be assured that the independent directors are truly
independent?
A Mrs. White:
"To be an independent director one must have no affiliation with the Fund's
management nor with any of its service or distribution providers. The
primary responsibility of the Fund's directors is to foster, adopt and
maintain policies that we believe to be in the best interest of the
shareholders. While independence is not a call to act against management
recommendations, it requires us to thoroughly assess management
recommendations and assure ourselves that they may benefit shareholders.
The law gives mutual fund directors strong guidance in maintaining their
independence. We are elected by shareholders and responsible to them.
Currently, the Investment Company Act of 1940, which is the major law
governing mutual funds, requires that at least 40% of a mutual fund board
must be independent. On Washington Mutual's Board, 7 of the 11 members, or
nearly 64%, are independent Directors. Also, the Fund's Nominating
Committee, which is responsible for selecting directors, is composed
entirely of independent Directors. I think it is also important to realize
that with mutual funds, unlike most other corporations, our shareholders
and our customers are basically one and the same. Therefore, I believe
there is an especially keen awareness among our Fund's Board of Directors
that our fundamental role is to best serve the interests of our present
shareholders and future shareholders."
Investment Portfolio
April 30, 1995
Market Percent
Value of Net
Securities<F1> Shares (000) Assets
ENERGY
Energy Sources (7.84%)
Amoco Corp. 4,995,000 $ 327,797 2.27%
Atlantic Richfield Co. 750,000 85,875 .59
Chevron Corp. 2,850,000 135,019 .94
Exxon Corp. 2,025,000 140,991 .98
Kerr-McGee Corp. 1,300,000 67,437 .47
Mobil Corp. 1,800,000 170,775 1.18
Texaco Inc. 2,690,000 183,929 1.27
Unocal Corp. 680,000 19,550 .14
1,131,373 7.84
Utilities: Electric & Gas (7.02%)
Allegheny Power System, Inc. 2,640,000 62,040 .43
American Electric Power
Company, Inc. 700,000 22,925 .16
Atlantic Energy, Inc. 1,950,000 35,344 .24
Brooklyn Union Gas Co. 352,000 8,536 .06
Carolina Power & Light Co. 3,207,000 88,192 .61
Central and South West Corp. 4,850,000 119,431 .83
CINergy Corp. 700,000 17,588 .12
Consolidated Edison Co. of
New York, Inc. 4,865,500 135,018 .94
Consolidated Natural Gas Co. 904,900 35,630 .25
Detroit Edison Co. 2,344,800 66,241 .46
Dominion Resources, Inc. 1,095,000 39,968 .28
Duke Power Co. 500,000 19,750 .14
Houston Industries Inc. 3,015,000 119,092 .83
Kansas City Power & Light Co. 1,400,000 31,850 .22
Northeast Utilities 2,258,500 49,405 .34
Pacific Gas and Electric Co. 1,200,000 32,250 .22
PECO Energy Co. 1,350,000 34,762 .24
Puget Sound Power & Light Co. 810,000 17,212 .12
SCEcorp. 3,125,000 52,344 .36
Unicom Corp. 955,000 25,069 .17
1,012,647 7.02
Total Energy 2,144,020 14.86
MATERIALS
Building Materials & Components (.23%)
Masco Corp. 1,300,000 $ 33,150 .23%
Chemicals (3.55%)
E.I. du Pont de Nemours and Co. 4,100,000 270,087 1.87
Monsanto Co. 2,760,700 229,828 1.60
PPG Industries, Inc. 300,000 11,813 .08
511,728 3.55
Forest Products & Paper (1.52%)
International Paper Co. 2,200,000 169,400 1.17
Westvaco Corp. 1,200,900 50,438 .35
219,838 1.52
Total Materials 764,716 5.30
CAPITAL EQUIPMENT
Aerospace & Military Technology (3.54%)
Boeing Co. 1,850,000 101,750 .70
Raytheon Co. 1,619,400 117,811 .82
United Technologies Corp. 3,990,000 291,769 2.02
511,330 3.54
Data Processing & Reproduction (2.24%)
Xerox Corp. 2,625,000 323,203 2.24
Electrical & Electronics (1.67%)
General Electric Co. 4,300,000 240,800 1.67
Electronic Components (.23%)
Thomas & Betts Corp. 510,000 32,512 .23
Electronic Instruments (.38%)
Johnson Controls, Inc. 1,000,000 54,250 .38
Aerospace & Military Technology (3.54%)
Boeing Co. 1,850,000 101,750 .70
Raytheon Co. 1,619,400 117,811 .82
United Technologies Corp. 3,990,000 291,769 2.02
511,330 3.54
Data Processing & Reproduction (2.24%)
Xerox Corp. 2,625,000 323,203 2.24
Electrical & Electronics (1.67%)
General Electric Co. 4,300,000 240,800 1.67
Electronic Components (.23%)
Thomas & Betts Corp. 510,000 32,512 .23
Electronic Instruments (.38%)
Johnson Controls, Inc. 1,000,000 54,250 .38
Industrial Components (1.25%)
Dana Corp. 2,000,000 $ 51,500 .36%
Eaton Corp. 1,250,000 71,719 .50
TRW Inc. 765,000 56,897 .39
180,116 1.25
Total Capital Equipment 1,342,211 9.31
CONSUMER GOODS
Appliances & Household Durables (.33%)
Maytag Corp. 2,750,000 47,438 .33
Beverages (.29%)
PepsiCo, Inc. 1,000,000 41,625 .29
Food & Household Products (2.54%)
Clorox Co. 1,119,500 65,770 .46
CPC International Inc. 1,840,000 107,870 .74
General Mills, Inc. 3,174,700 193,657 1.34
367,297 2.54
Health & Personal Care (12.69%)
American Home Products Corp. 4,280,000 330,095 2.29
Bristol-Myers Squibb Co. 4,575,000 297,947 2.07
Johnson & Johnson 1,000,000 65,000 .45
Kimberly-Clark Corp. 336,000 19,026 .13
Eli Lilly and Co. 3,922,000 293,169 2.03
McKesson Corp. 750,000 29,719 .21
Merck & Co., Inc. 6,050,000 259,394 1.80
Schering-Plough Corp. 450,000 33,919 .23
Tambrands Inc. 1,022,500 42,561 .29
Upjohn Co. 4,650,000 168,562 1.17
Warner-Lambert Co. 3,645,000 290,689 2.02
1,830,081 12.69
Recreation & Other Consumer Products (.20%)
Eastman Kodak Co. 500,000 28,750 .20
Textiles & Apparel (.21%)
VF Corp. 600,000 30,300 .21
Total Consumer Goods 2,345,491 16.26
SERVICES
Broadcasting & Publishing (1.55%)
CBS Inc. 455,075 $ 29,182 .20%
Cox Communications,Inc., Class A 1,413,407 21,554 .15
Gannett Co., Inc. 1,820,000 95,778 .66
McGraw-Hill, Inc. 175,000 13,059 .09
Times Mirror Co. (New) 2,192,553 39,740 .28
Times Mirror Co.,
preferred equity
redemption cumulative
stock, Series B 1,195,747 24,064 .17
223,377 1.55
Business & Public Services (4.32%)
Browning-Ferris Industries, Inc. 1,000,000 33,000 .23
Deluxe Corp. 2,509,900 77,493 .54
Dun & Bradstreet Corp. 4,513,000 235,240 1.63
Pitney Bowes Inc. 5,375,000 199,547 1.38
WMX Technologies, Inc. 2,850,000 77,663 .54
622,943 4.32
Merchandising (1.25%)
Melville Corp. 2,850,000 101,887 .71
J.C. Penney Co., Inc. 500,000 21,875 .15
Walgreen Co. 600,000 28,200 .19
Winn-Dixie Stores, Inc. 527,600 29,216 .20
181,178 1.25
Telecommunications (13.13%)
ALLTEL Corp. 1,500,000 37,125 .26
Ameritech Corp. 4,950,000 222,750 1.54
AT&T Corp. 4,634,000 235,176 1.63
Bell Atlantic Corp. 3,160,000 173,405 1.20
BellSouth Corp. 1,000,000 61,250 .43
GTE Corp. 6,600,000 225,225 1.56
NYNEX Corp. 1,600,000 65,400 .45
Pacific Telesis Group 10,650,000 328,819 2.28
Southwestern Bell Corp. 1,410,000 62,216 .43
Sprint Corp. 3,710,000 122,430 .85
US WEST, Inc. 8,710,000 360,376 2.50
1,894,172 13.13
Transportation: Rail (2.45%)
Norfolk Southern Corp. 3,535,000 $ 238,171 1.65%
Union Pacific Corp. 2,100,000 115,237 .80
353,408 2.45
Total Services 3,275,078 22.70
FINANCE
Banking (15.54%)
Banc One Corp. 5,900,000 174,050 1.21
Bank of New York Co., Inc. 7,600,000 249,850 1.73
BankAmerica Corp. 2,925,000 144,787 1.00
Bankers Trust New York Corp. 3,440,000 186,620 1.29
Barnett Banks, Inc. 496,600 23,216 .16
Barnett Banks, Inc. $4.50
cumulative convertible
preferred, Series A 100,000 8,900 .06
Chemical Banking Corp. 3,600,000 150,300 1.04
Comerica Inc. 850,000 24,438 .17
First Chicago Corp. 1,825,000 100,831 .70
First Union Corp. 3,425,000 154,981 1.08
Fleet Financial Group, Inc. 3,300,000 108,075 .75
J.P. Morgan & Co. Inc. 2,915,200 191,310 1.33
National City Corp. 4,800,000 131,400 .91
National City Corp. 8.00%
cumulative convertible
preferred 100,000 6,650 .05
NationsBank Corp. 700,000 35,000 .24
Norwest Corp. 2,500,000 66,250 .46
PNC Bank Corp. 5,100,000 128,138 .89
SunTrust Banks, Inc. 2,355,000 127,759 .89
Wachovia Corp. 2,970,000 104,321 .72
Wells Fargo & Co. 750,000 124,406 .86
2,241,282 15.54
Financial Services (3.43%)
American Express Co. 3,625,000 125,969 .87
Beneficial Corp. 2,000,000 81,500 .56
Federal National Mortgage
Assn. 1,325,000 116,931 .81
Household International, Inc. 3,050,000 142,969 .99
Student Loan Marketing Assn. 700,000 28,350 .20
495,719 3.43
Insurance (4.98%)
Aetna Life and Casualty Co. 1,870,000 $ 106,590 .74%
Allstate Corp. 7,475,000 227,053 1.57
American General Corp. 4,175,000 137,775 .96
CIGNA Corp. 1,000,000 72,625 .50
Lincoln National Corp. 2,600,000 105,950 .73
Marsh & McLennan
Companies, Inc. 285,000 22,337 .16
St. Paul Companies, Inc. 958,200 46,114 .32
718,444 4.98
Total Finance 3,455,445 23.95
MULTI-INDUSTRY
Multi-Industry (1.40%)
AlliedSignal Inc. 800,000 31,700 .22
Minnesota Mining and
Manufacturing Co. 2,865,000 170,826 1.18
Total Multi-Industry 202,526 1.40
Principal
Amount
(000)
CONVERTIBLE DEBENTURES
Business & Public Services (.07%)
Browning-Ferris Industries,
Inc. 6.25% 2012 $10,000 9,975 .07
Total Convertible Debentures 9,975 .07
MISCELLANEOUS
Stocks in initial period of
acquisition 364,664 2.53
TOTAL INVESTMENT SECURITIES
(cost: $10,774,370,000) 13,904,126 96.38
Excess of United States Treasury
bills, cash, and receivables
over payables 521,655 3.62
NET ASSETS $14,425,781 100.00%
[FN]
<F1> Securities listed are common stocks unless otherwise indicated.
[/FN]
See Notes to Financial Statements
Financial Statements
Statement of Assets and Liabilities
April 30, 1995 (dollars in thousands)
Assets:
Investment securities at market
(cost: $10,774,370) $13,904,126
United States Treasury bills
(cost: $645,297) 645,357
Cash 44
Receivables for-
Sales of investments $ 40,928
Sales of Fund's shares 29,018
Dividends and interest 42,601 112,547
14,662,074
Liabilities:
Payables for-
Purchases of investments 199,072
Repurchases of Fund's shares 27,097
Management services 4,024
Accrued expenses 6,100 236,293
Net Assets at April 30, 1995
Equivalent to $18.87 per share on
764,361,851 shares of $1 par value
capital stock outstanding (authorized
capital stock - 1,000,000,000 shares) $14,425,781
Statement of Operations
for the year ended April 30, 1995 (dollars in thousands)
Investment Income:
Income:
Dividends $ 533,586
Interest 24,422 $ 558,008
Expenses:
Investment management fee 27,370
Business management fee 18,180
Distribution expenses 27,375
Transfer agent fee 11,583
Reports to shareholders 770
Registration statement and prospectus 607
Postage, stationery and supplies 3,169
Directors' and Advisory Board fees 339
Auditing and legal fees 113
Custodian fee 206
Other expenses 120 89,832
Net investment income 468,176
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 381,437
Net increase in unrealized appreciation
on investments:
Beginning of year 1,887,797
End of year 3,129,816
Net increase in unrealized
appreciation on investments 1,242,019
Net realized gain and unrealized
appreciation on investments 1,623,456
Net Increase in Net Assets
Resulting from Operations $2,091,632
Statement of Changes in Net Assets
Year ended April 30
(dollars in thousands) 1995 1994
Operations:
Net investment income $ 468,176 $ 401,374
Net realized gain on investments 381,437 422,013
Net change in unrealized
appreciation on investments 1,242,019 (544,532)
Net Increase in Net Assets
Resulting from Operations 2,091,632 278,855
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (459,553) (380,066)
Distributions from net realized gain
on investments (299,287) (269,244)
Total Dividends and Distributions (758,840) (649,310)
Capital Share Transactions:
Proceeds from shares sold:
94,281,478 and 139,959,192
shares, respectively 1,668,041 2,492,944
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
40,423,865 and 32,537,831 shares,
respectively 698,310 579,380
Cost of shares repurchased:
95,400,583 and 90,267,733
shares, respectively (1,678,501) (1,603,085)
Net Increase in Net Assets Resulting
from Capital Share Transactions 687,850 1,469,239
Total Increase in Net Assets 2,020,642 1,098,784
Net Assets:
Beginning of year 12,405,139 11,306,355
End of year (including undistributed
net investment income: $53,429 and
$44,806, respectively) $14,425,781 $12,405,139
See Notes to Financial Statements
Notes to Financial Statements
1. Washington Mutual Investors Fund (the "Fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements:
Investment securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day
of the year or, for listed securities having no sales reported, upon
last-reported bid prices on that date. Treasury bills with original or
remaining maturities in excess of 60 days are valued at the mean of their
quoted bid and asked prices obtained from a major dealer in short-term
securities. Treasury bills with 60 days or less to maturity are valued at
amortized cost, which approximates market value.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized
gains and losses from securities transactions are reported on an identified
cost basis. Dividend and interest income is reported on the accrual basis.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Pursuant to the custodian agreement, the Fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian
bank. The custodian fee of $206,000 included $79,000 that was paid by
these credits rather than in cash.
2. It is the Fund's policy to continue to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its net taxable income, including any net realized
gain on investments, to its shareholders. Therefore, no federal income tax
provision is required.
As of April 30, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $3,129,816,000, of which
$3,186,187,000 related to appreciated securities and $56,371,000 related to
depreciated securities. There was no difference between book and tax
realized gains on securities transactions for the year ended April 30,
1995. The cost of portfolio securities for book and federal income tax
purposes was $11,419,667,000 at April 30, 1995.
3. Officers of the Fund received no remuneration from the Fund in such
capacities. Their remuneration was paid by Washington Management
Corporation (WMC), a wholly owned subsidiary of The Johnston-Lemon Group,
Incorporated. A fee of $18,180,000 was paid to WMC as business manager of
the Fund pursuant to the business management agreement under which WMC
provides the officer personnel, accounting and clerical staff of the Fund,
together with office space and equipment. The business management
agreement provides for monthly fees, accrued daily, based on an annual rate
of 0.25% of the first $125 million of net assets; 0.175% of such assets in
excess of $125 million but not exceeding $3 billion; 0.15% of such assets
in excess of $3 billion but not exceeding $5 billion; 0.135% of such assets
in excess of $5 billion but not exceeding $8 billion; 0.12% of such assets
in excess of $8 billion but not exceeding $12 billion; and 0.095% of such
assets in excess of $12 billion. Under this agreement all expenses
chargeable to the Fund, including compensation to the business manager,
shall not exceed 1% of the average net assets of the Fund on an annual
basis. Johnston, Lemon & Co. Incorporated, a wholly owned subsidiary of
The Johnston-Lemon Group, Incorporated, has informed the Fund that it has
earned $496,000 on its retail sales of shares and under the distribution
plan of the Fund but received no net brokerage commissions resulting from
purchases and sales of securities for the investment account of the Fund.
All the officers of the Fund and four of its directors are affiliated with
The Johnston-Lemon Group, Incorporated. Capital Research and Management
Company, investment manager of the Fund, was paid a fee of $27,370,000 for
investment management services. The investment advisory agreement provides
for monthly fees, accrued daily, based on an annual rate of 0.25% of the
first $125 million of net assets; 0.225% of such assets in excess of $125
million but not exceeding $3 billion; 0.21% of such assets in excess of $3
billion but not exceeding $8 billion; and 0.20% of such assets in excess of
$8 billion.
Pursuant to a Plan of Distribution, the Fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result
in sales of Fund shares, provided the categories of expenses for which
reimbursement is made are approved by the Fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts and reimbursements to American Funds
Distributors, Inc. (AFD), the principal underwriter of the Fund's shares,
for its activities and expenses related to the sales of Fund shares or
servicing of shareholder accounts. During the year ended April 30, 1995,
distribution expenses under the Plan were $27,375,000 including $4,924,000
accrued and uninvoiced distribution expenses.
American Funds Service Company (AFS), the transfer agent for the Fund, was
paid a fee of $11,583,000. AFD has informed the Fund that it has received
$7,073,000 (after allowances to dealers) as its portion of the sales
charges paid by purchasers of the Fund's shares. Such sales charges are
not an expense of the Fund and, hence, are not reflected in the
accompanying statement of operations.
Directors of the Fund who are unaffiliated with WMC may elect to defer part
or all of the fees earned for services as members of the board. Amounts
deferred are not funded and are general unsecured liabilities of the Fund.
As of April 30, 1995, aggregate amounts deferred were $48,000.
4. As of April 30, 1995, accumulated undistributed net realized gain on
investments was $308,426,000 and additional paid-in capital was
$10,169,748,000.
The Fund made purchases and sales of investment securities, excluding
short-term securities, of $3,592,912,000 and $3,213,373,000, respectively,
during the year ended April 30, 1995.
<TABLE>
<CAPTION>
Per-Share Data and Ratios
Year ended April 30
<S> <C> <C> <C> <C> <C>
1995 1994 1993 1992 1991
Net Asset Value, Beginning of Year $17.11 $17.59 $16.22 $15.02 $13.75
Income from Investment Operations:
Net investment income .63 .59 .56 .56 .58
Net realized and unrealized gain (loss)
on investments 2.16 (.12) 1.55 1.50 1.37
Total income from investment operations 2.79 .47 2.11 2.06 1.95
Less Distributions:
Dividends from net investment income (.62) (.56) (.56) (.56) (.62)
Distributions from net realized gains (.41) (.39) (.18) (.30) (.06)
Total distributions (1.03) (.95) (.74) (.86) (.68)
Net Asset Value, End of Year $18.87 $17.11 $17.59 $16.22 $15.02
Total Return<F1> 17.01% 2.55% 13.36% 14.24% 14.69%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $14,426 $12,405 $11,306 $8,896 $6,596
Ratio of expenses to average net assets .69% .69% .70% .74% .77%
Ratio of net income to average net assets 3.57% 3.29% 3.33% 3.58% 4.24%
Portfolio turnover rate 25.5 % 23.9 % 18.6 % 10.4 % 10.9 %
<FN>
<F1>Does not take into account effect of sales charge, at a maximum rate of
5.75%. Total Return figures for 1991, 1992 and 1993 have been revised.
Previously shown for these years were 14.71%, 14.27%, and 13.38%,
respectively.
</FN>
</TABLE>
Report of Independent Accountants
To the Board of Directors and Shareholders of Washington Mutual Investors
Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of
operations and of changes in net assets and the per-share data and ratios
present fairly, in all material respects, the financial position of
Washington Mutual Investors Fund, Inc. (the "Fund") at April 30, 1995, the
results of its operations, the changes in its net assets and the per-share
data and ratios for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and per-share
data and ratios (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at April 30, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Los Angeles, California
May 31, 1995
Tax Information (Unaudited)
During the fiscal year ended April 30, 1995, all dividends paid by the Fund
from net investment income earned qualified for the corporate
dividends-received deduction. Five percent of such dividends paid by the
Fund represent interest on direct U.S. Treasury obligations. This
information is given to meet certain requirements of the Internal Revenue
Code.
Directory of the Fund
Offices of the Fund and of the Business Manager
Washington Management Corporation
1101 Vermont Avenue, NW
Washington, DC 20005-3585
Investment Manager
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1443
135 South State College Boulevard
Brea, CA 92621-5804
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 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, NY 10081-0001
Counsel
Thompson, O'Donnell, Markham, Norton & Hannon
805 Fifteenth Street, NW
Washington, DC 20005-2216
Independent Accountants
Price Waterhouse LLP
400 South Hope Street
Los Angeles, CA 90071-2889
Principal Underwriter
American Funds
Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1462
Board of Directors
Stephen Hartwell
Chairman of the Board
Chairman, Washington Management Corporation
James H. Lemon, Jr.
Vice Chairman of the Board
Chairman and Chief Executive Officer,
The Johnston-Lemon Group, Incorporated
Harry J. Lister
President of the Fund
Director and President, Washington Management Corporation
Cyrus A. Ansary
President, Investment Services International Co.
John A. Beck
Of Counsel, Reed Smith
Shaw & McClay
James C. Miller III
Counsellor, Citizens for a Sound Economy
Thomas J. Owen
Former Chairman, Perpetual Financial Corporation
Jean Head Sisco
Partner, Sisco Associates
T. Eugene Smith
President, T. Eugene Smith Inc.
Margita E. White
President, Association for Maximum Service Television Inc.
Stephen G. Yeonas
Chairman and Chief Executive Officer,
Stephen G. Yeonas Company
Advisory Board
Mary K. Bush
Consultant, Institute of International Finance, Inc.
Daniel J. Callahan III
Former Chairman and Chief Executive Officer, USLICO Corporation
Vernon W. Holleman, Jr.
President, Vernon W. Holleman, Jr., Co.
William B. Snyder
Chairman, President and Chief Executive Officer, Southern Heritage
Holdings, Inc. and Merastar Corporation
Leonard P. Steuart II
Vice President, Steuart Investment Co.
Robert F. Tardio
Independent Consultant
W. Reid Thompson
Advisory Director, Potomac Electric Power Company
Other Officers
Howard L. Kitzmiller
Senior Vice President, Secretary and Assistant Treasurer of the Fund
Director, Senior Vice President, Secretary and Assistant Treasurer,
Washington Management Corporation
Ralph S. Richard
Vice President and Treasurer of the Fund
Director and Executive Vice President, Johnston, Lemon & Co. Incorporated
Lois A. Erhard
Assistant Vice President of the Fund
Vice President, Washington Management Corporation
Directors Emeritus
Bernard J. Nees
Chairman Emeritus
Director Emeritus and Executive Vice President, Johnston, Lemon & Co.
Incorporated
Charles T. Akre
Of Counsel, Miller & Chevalier, Chartered
Dr. Nathan A. Baily
Management, Marketing and Education Consultant
Frank M. Ewing
Chairman and President, Frank M. Ewing Co., Inc.
Henry W. Herzog
Vice President and Treasurer Emeritus, The George Washington University
[Photo Caption]
Advisory Board
A - Daniel J. Callahan III
B - William B. Snyder
C - Mary K. Bush
D - Leonard P. Steuart II
E - W. Reid Thompson
F - Vernon W. Holleman, Jr.
G - Robert F. Tardio
[End Photo Caption]
Washington Mutual Investors Fund, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
202/842-5665
For information about your account or any of the Fund's services, please
contact your securities dealer or financial planner, or call theFund's
transfer agent, toll-free, at 800/421-0180.
This report is for the information of shareholders of Washington Mutual
Investors Fund, Inc., 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 June 30, 1995, this report must
be accompanied by an American Funds Group Statistical Update for the most
recently completed calendar quarter.
Printed on recycled paper
WMIF-011-0695
Design and Production: Alumena, Silver Spring, Md. / Cover Photography:
Roger Miller / Inside Photography: F-Stop Studio
