Washington Mutual Investors Fund
Report to Shareholders
For the Quarter Ended January 31, 1996
(Logo)
The American Funds Group (R)
Fellow Shareholders
Responding to further gains in corporate profits and a continued decline in
interest rates, the stock market extended its advance in the third quarter
of Washington Mutual's fiscal year. For the three months ended January 31,
the unmanaged Standard & Poor's 500 Composite Index rose 10.0% on a total
return basis. The value of the Fund's shares posted a somewhat larger
increase: 11.6% with distributions reinvested.
During the period, the economy showed signs of losing momentum. Retail
sales weakened in December and January. Poor weather contributed to this
weakness along with an erosion in consumer confidence, which had already
been impacted by the stalemate over the Federal budget and by more
announcements of corporate downsizings and layoffs.
The Federal Reserve has taken steps to counter the current softness in the
economy. On December 19 and again on January 31, it lowered the target for
Federal funds by a quarter of one percent. Most major banks reduced their
prime lending rates by the same amount.
In the November-to-January quarter, your Fund continued to benefit from
dividend increases by a number of companies represented in its portfolio.
Thirty-one firms - or 23% of the total - took action to raise dividends
during the three months.
The portfolio appearing in this report reflects ownership of 134 companies
in 25 industries. On January 31, the largest industry positions as a
percentage of net assets were Banking (16.0%); Health & Personal Care
(12.6%); Telecommunications (10.6%); Energy Sources (8.8%); Electric & Gas
Utilities (8.2%); Insurance (5.7%); Business & Public Services (4.9%);
Chemicals (3.6%); Financial Services (3.5%); and Merchandising (3.1%).
Nine new names have appeared in the Fund's portfolio since October 31:
Baltimore Gas and Electric, Emerson Electric, Equitable Resources, Florida
Progress, Goodyear Tire & Rubber, Oklahoma Gas and Electric,
Sherwin-Williams, Southern Co. and Union Electric. Three names were
eliminated: CBS, McGraw-Hill and SCANA.
We look forward to reporting to you again after the close of our fiscal
year April 30. Meanwhile, your questions and comments are always welcome.
Cordially,
(Signatures)
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman Vice Chairman President
March 11, 1996
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND WERE CALCULATED WITHOUT
A SALES CHARGE. ALL INVESTMENTS ARE SUBJECT TO CERTAIN RISKS. FOR EXAMPLE,
THOSE WHICH INCLUDE COMMON STOCKS ARE AFFECTED BY FLUCTUATING STOCK PRICES
SO YOU MAY GAIN OR LOSE MONEY BY INVESTING IN THE FUND. INVESTORS SHOULD
MAINTAIN A LONG-TERM INVESTMENT PERSPECTIVE. 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.
(Logo)
Washington Mutual Investors Fund
Your Investment Account
As of January 31, 1996
Each $1,000 of Net Assets Represented:
Which
This Has Paid
Amount Dividends
Invested In This Company Since
$10.19 Aetna Life and Casualty Co. 1934
2.05 AlliedSignal Inc. 1920
14.59 Allstate Corp. 1993
4.02 ALLTEL Corp. 1960
6.12 American Electric Power Company, Inc. 1910
7.31 American Express Co. 1870
9.87 American General Corp. 1929
22.37 American Home Products Corp. 1919
13.02 Ameritech Corp. 1984
11.22 Amoco Corp. 1894
5.27 Ashland Inc. 1935
1.63 Atlantic Energy, Inc. 1937
4.66 Atlantic Richfield Co. 1927
19.42 AT&T Corp. 1881
1.47 Baltimore Gas and Electric Co. 1910
11.45 Banc One Corp. 1968
17.86 Bank of New York Co., Inc. 1785
7.86 BankAmerica Corp. 1968
6.40 Bankers Trust New York Corp. 1904
2.74 Barnett Banks, Inc. 1945
7.80 Bell Atlantic Corp. 1984
5.01 Beneficial Corp. 1929
4.97 Boeing Co. 1942
16.67 Bristol-Myers Squibb Co. 1900
1.29 Brooklyn Union Gas Co. 1949
3.69 Browning-Ferris Industries, Inc. 1965
.95 Carolina Power & Light Co. 1937
2.67 Central and South West Corp. 1947
4.42 Chase Manhattan Corp. 1969
15.80 Chemical Banking Corp. 1968
17.68 Chevron Corp. 1912
6.99 CIGNA Corp. 1981
1.12 CINergy Corp. 1940
1.69 Clorox Co. 1967
7.21 Colgate-Palmolive Co. 1859
1.93 Comerica Inc. 1972
4.19 Conrail, Inc. 1987
8.65 Consolidated Edison Co. of New York, Inc. 1885
2.66 Consolidated Natural Gas Co. 1944
6.86 CPC International Inc. 1920
3.44 Dana Corp. 1936
1.81 Deluxe Corp. 1967
1.31 Dominion Resources, Inc. 1925
2.01 Dow Jones & Co., Inc. 1962
25.91 E.I. du Pont de Nemours and Co. 1904
4.31 DTE Energy Co. (formerly Detroit Edison Co.) 1909
4.08 Duke Power Co. 1926
21.60 Dun & Bradstreet Corp. 1934
1.88 Eastman Kodak Co. 1902
6.24 Eaton Corp. 1923
1.50 Emerson Electric Co. 1940
.51 Equitable Resources, Inc. 1947
12.55 Exxon Corp. 1882
10.17 Federal National Mortgage Assn. 1955
7.35 First Chicago NBD Corp. (formerly First
Chicago Corp. and NBD Bancorp, Inc.) 1936
8.45 First Union Corp. 1989
10.85 Fleet Financial Group, Inc. 1968
2.90 Florida Progress Corp. 1982
2.93 Gannett Co., Inc. 1929
10.03 General Electric Co. 1899
10.36 General Mills, Inc. 1928
1.72 Goodyear Tire & Rubber Co. 1899
7.26 GTE Corp. 1936
8.81 Household International, Inc. 1926
6.13 Houston Industries Inc. 1922
16.76 International Paper Co. 1946
4.92 Johnson & Johnson 1934
3.99 Johnson Controls, Inc. 1901
1.90 Kansas City Power & Light Co. 1950
5.84 Kerr-McGee Corp. 1937
3.39 KeyCorp 1961
6.82 Kimberly-Clark Corp. 1923
18.88 Eli Lilly and Co. 1885
7.05 Lincoln National Corp. 1920
4.03 Marsh & McLennan Companies, Inc. 1923
1.87 Masco Corp. 1936
1.89 Maytag Corp. 1946
1.92 McKesson Corp. 1962
3.29 Melville Corp. 1916
19.98 Merck & Co., Inc. 1935
17.83 Minnesota Mining andManufacturing Co. 1916
8.52 Mobil Corp. 1902
7.25 Monsanto Co. 1925
12.88 J.P. Morgan & Co. Inc. 1892
11.18 National City Corp. 1972
10.57 NationsBank Corp. 1968
15.91 Norfolk Southern Corp. 1901
1.45 Northeast Utilities 1927
5.11 Norwest Corp. 1939
3.30 NYNEX Corp. 1984
.86 Oklahoma Gas and Electric Co. 1943
5.48 Pacific Gas and Electric Co. 1912
22.48 Pacific Telesis Group 1984
2.92 PECO Energy Co. 1928
14.27 J.C. Penney Co., Inc. 1926
4.89 PepsiCo, Inc. 1921
1.80 Pfizer Inc 1925
12.39 Pharmacia & Upjohn, Inc. (formerly Upjohn Co.) 1959
12.47 Pitney Bowes Inc. 1934
7.53 PNC Bank Corp. 1865
6.20 PP & L Resources, Inc. 1994
5.80 Public Service Enterprise Group Inc. 1948
1.04 Puget Sound Power & Light Co. 1943
6.39 Raytheon Co. 1964
4.09 SBC Communications Inc. 1984
4.90 SCEcorp. 1910
3.05 Schering-Plough Corp. 1952
2.51 Sherwin-Williams Co. 1885
1.13 Signet Banking Corp. 1962
1.30 Southern Co. 1947
6.98 Sprint Corp. 1939
4.18 St. Paul Companies, Inc. 1968
3.39 Student Loan Marketing Assn. 1976
6.57 SunTrust Banks, Inc. 1985
2.10 Tambrands Inc. 1941
19.21 Texaco Inc. 1903
2.05 Thomas & Betts Corp. 1934
1.43 Times Mirror Co. 1892
4.60 TRW Inc. 1936
.78 Unicom Corp. 1890
3.71 Union Electric Co. 1953
10.59 Union Pacific Corp. 1968
5.76 United Technologies Corp. 1936
2.55 Unocal Corp. 1916
17.59 U S WEST Communications Group
(formerly a part of U S WEST, Inc.) 1984
6.96 U S WEST Media Group ('95 spinoff
from U S WEST, Inc.) -
1.55 VF Corp. 1941
6.81 Wachovia Corp. 1936
3.93 Walgreen Co. 1899
9.40 Wal-Mart Stores, Inc. 1971
15.54 Warner-Lambert Co. 1926
5.00 Westvaco Corp. 1899
9.19 WMX Technologies, Inc. 1975
14.73 Xerox Corp. 1930
Stocks in initial period of acquisition - $1.96
Excess of United States Treasury bills, cash, and
receivables over payables - $39.53
On January 31, 1996 the Fund's net asset value per share was $22.50, and
net assets were $19,511,575,988
Each $1,000 of Net Assets Was Invested In These Industries:
Energy
Energy Sources $ 87.50
Utilities: Electric & Gas 82.14
Materials
Building Materials & Components 1.87
Chemicals 35.67
Forest Products & Paper 21.76
Capital Equipment
Aerospace & Military Technology 17.12
Data Processing & Reproduction 14.73
Electrical & Electronics 11.53
Electronic Components 2.05
Industrial Components 19.99
Consumer Goods
Appliances & Household Durables 1.89
Beverages 4.89
Food & Household Products 26.12
Health & Personal Care 126.44
Recreation & Other Consumer Products 1.88
Textiles & Apparel 1.55
Services
Broadcasting & Publishing 13.33
Business & Public Services 48.76
Merchandising 30.89
Telecommunications 105.96
Transportation: Rail 30.69
Finance
Banking 160.28
Financial Services 34.69
Insurance 56.90
Multi-Industry
Multi-Industry 19.88
Stocks in initial period of acquisition 1.96
Excess of United States Treasury bills, cash, and
receivables over payables 39.53
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.
Washington Mutual Investors Fund
Directors
Stephen Hartwell
(Chairman)
James H. Lemon, Jr.
(Vice Chairman)
Harry J. Lister
(President)
Cyrus A. Ansary
John A. Beck
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
Office of the Fund and the Business Manager
Washington Management Corporation
1101 Vermont Avenue, NW
Washington, DC 20005-3585
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 20005-2216
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
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.
WMIF-012-0396
