Washington Mutual Investors Fund
(Art)
(Logo)
The American Funds Group(R)
Semi-Annual Report
October 31, 1997
Washington Mutual Investors Fund seeks to provide income and growth of
principal through quality common stocks.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE RESULTS. FUND RESULTS IN THIS REPORT WERE CALCULATED WITHOUT A SALES
CHARGE. SHARE PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY BY
INVESTING IN THE FUND. THE SHORTER THE TIME PERIOD OF YOUR INVESTMENT, THE
GREATER THE POSSIBILITY OF LOSS. 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.
FELLOW SHAREHOLDERS:
The first half of our fiscal year - the six months ended October 31 -
was marked by further economic expansion in the United States and by a
selloff in stock prices around the world. The decline began in Asia this
past summer and spread to Europe and the U.S. It was followed, in this
country, by a recovery in which prices fluctuated sharply and ended the
period below their 1997 peak, but still relatively high by historical
standards.
In this environment, Washington Mutual recorded a sizeable gain. For
the six months, the value of an investment in the Fund rose 17.6% versus a
15.1% increase for the unmanaged Standard & Poor's 500 Composite Stock
Index, both including reinvestment. It is worth noting that during the
October slide (from the high recorded on October 7 to the low on October
27), the S&P 500 fell 10.8% while the Fund's share value went down 7.7%.
The selloff removed some of the euphoria that had surrounded the
market and focused investor attention on possible repercussions of the
decline in commodity and other prices taking place in the economies of a
number of Asian countries. While this deflationary trend is certainly a
legitimate concern, we believe the conservative nature of Washington
Mutual's portfolio of U.S. stocks - with its emphasis on dividend income
and relatively low price-to-earnings ratios - should continue to help
cushion the Fund if there is further market volatility in the period ahead.
As a counterpoint to the negative news coming from overseas, it should
be mentioned that the United States is currently enjoying the most
favorable business conditions in many years, with growth continuing at a
steady pace, unemployment lower than at any time since 1973 and inflation
at the lowest level in more than a decade.
The portfolio in this report shows ownership of 151 companies in 27
industries. On October 31, the largest industry positions as a percentage
of net assets were Banking (14.7%), Health & Personal Care (11.7%), Energy
Sources (10.4%), Telecommunications (8.7%), Electric & Gas Utilities
(8.1%), and Insurance (6.0%).
Seven new company names have appeared in the portfolio since July 31:
American Stores, Enova, GPU, International Flavors & Fragrances, Johnson
Controls, Solutia (spun off from Monsanto Company), and Willamette
Industries. Two holdings were eliminated: Northeast Utilities and
Whirlpool. Again this year, changes in your Fund's portfolio have resulted
in substantial capital gains. To avoid payment of Federal excise taxes,
these gains will be distributed to shareholders, together with an extra
income payment, prior to December 31st. Because long-term capital gain
taxes were reduced this past summer, a portion of the distribution will
qualify for the new lower 20% rate. All shareholders subject to Federal
income tax will receive a Form 1099 containing final details in late
January.
Your questions and comments will, as always, be most welcome.
Cordially,
(Signatures)
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman of the Board Vice Chairman of the Board President
December 12, 1997
Washington Mutual Investors Fund
Investment Portfolio
October 31, 1997
Unaudited
Five Largest Ten Largest
Investment Categories Individual Holdings
Percent of Percent of Percent of
Net Assets Net Assets Net Assets
Finance 24.59% Atlantic Richfield 3.08% U S West
Services 18.79 AT&T 2.98 Communications 1.98%
Energy 18.44 Texaco 2.71 J.C. Penney 1.89
Consumer Goods 16.92 Warner-Lambert 2.60 DuPont 1.87
Capital Equipment 7.22 Ameritech 2.22 Bank of New York 1.84
Eli Lilly 2.13
Market Percent
Value of Net
Common Stocks Shares (000) Assets
Energy
Energy Sources (10.37%)
Amoco Corp. 7,040,000 $ 645,480 1.83%
Atlantic Richfield Co. 13,212,500 1,087,554 3.08
Chevron Corp. 5,600,000 464,450 1.32
Exxon Corp. 2,500,000 153,594 .44
Kerr-McGee Corp. 2,350,000 158,772 .45
Mobil Corp. 1,050,000 76,453 .22
Texaco Inc. 16,800,000 956,550 2.71
Unocal Corp. 2,740,100 113,029 .32
3,655,882 10.37
Utilities: Electric & Gas (8.07%)
American Electric Power Co., Inc. 3,850,000 181,913 .52
Atlantic Energy, Inc. 1,650,000 30,422 .09
Baltimore Gas and Electric Co. 2,000,000 54,875 .16
Carolina Power & Light Co. 4,000,000 143,000 .41
Central and South West Corp. 4,682,300 100,962 .29
CINergy Corp. 700,000 23,100 .06
Consolidated Edison Co. of New York, Inc. 6,000,000 205,500 .58
Consolidated Natural Gas Co. 2,100,000 113,531 .32
Dominion Resources, Inc. 595,000 22,127 .06
DTE Energy Co. 3,865,000 118,849 .34
Duke Energy Corp. 8,048,082 388,320 1.10
Edison International 5,785,000 148,241 .42
Enova Corp. 2,000,000 48,625 .14
Florida Progress Corp. 4,835,800 157,466 .45
FPL Group, Inc. 1,600,000 82,700 .23
GPU, Inc. 1,700,000 61,519 .17
Houston Industries Inc. 2,800,000 60,900 .17
KeySpan Energy Corp.
(formerly Brooklyn Union Gas Co.) 900,000 27,956 .08
Utilities: Electric & Gas (continued)
OGE Energy Corp. 400,000 19,375 .06%
PECO Energy Co. 2,752,100 62,438 .18
PG&E Corp. 2,000,000 51,125 .15
PP & L Resources, Inc. 4,700,000 101,637 .29
Public Service Enterprise Group Inc. 3,820,000 99,081 .28
Puget Sound Energy, Inc. 2,840,000 75,615 .21
Southern Co. 11,695,500 268,266 .76
Union Electric Co. 4,814,900 181,462 .51
Wisconsin Energy Corp. 600,000 15,187 .04
2,844,192 8.07
Total Energy 6,500,074 18.44
Materials
Chemicals (3.44%)
E.I. du Pont de Nemours and Co. 11,585,000 658,897 1.87
International Flavors & Fragrances Inc. 800,000 38,700 .11
Monsanto Co. 3,700,000 158,175 .45
PPG Industries, Inc. 4,229,200 239,478 .68
Sherwin-Williams Co. 3,000,000 83,250 .24
Solutia Inc. 540,000 11,948 .03
Witco Corp. 500,000 21,750 .06
1,212,198 3.44
Forest Products & Paper (2.32%)
International Paper Co. 10,150,000 456,750 1.30
Louisiana-Pacific Corp. 5,425,000 113,924 .32
Westvaco Corp. 5,501,350 180,513 .51
Willamette Industries, Inc. 2,000,000 66,125 .19
817,312 2.32
Metals: Nonferrous (.41%)
Phelps Dodge Corp. 1,950,000 145,031 .41
Total Materials 2,174,541 6.17
Capital Equipment
Aerospace & Military Technology (1.43%)
Boeing Co. 2,120,140 101,502 .29
Raytheon Co. 4,850,000 263,113 .75
United Technologies Corp. 1,967,100 137,697 .39
502,312 1.43
Data Processing & Reproduction (.95%)
Xerox Corp. 4,240,000 336,285 .95
Electrical & Electronics (.47%)
Emerson Electric Co. 2,030,300 106,464 .30%
General Electric Co. 900,000 58,106 .17
164,570 .47
Electronic Components (.42%)
AMP Inc. 2,150,000 96,750 .28
Thomas & Betts Corp. 1,020,000 50,745 .14
147,495 .42
Energy Equipment (.20%)
Dresser Industries, Inc. 1,700,000 71,613 .20
Industrial Components (3.06%)
Dana Corp. 3,222,800 150,867 .43
Eaton Corp. 2,100,000 202,912 .58
Echlin Inc. 2,500,000 81,875 .23
Genuine Parts Co. 7,575,000 237,192 .67
Goodyear Tire & Rubber Co. 2,200,000 137,775 .39
Johnson Controls, Inc. 2,000,000 89,750 .25
Rockwell International Corp. 400,000 19,600 .06
TRW Inc. 2,800,000 160,300 .45
1,080,271 3.06
Machinery & Engineering (.69%)
Caterpillar Inc. 3,182,200 163,088 .46
Ingersoll-Rand Co. 1,012,500 39,424 .11
Parker Hannifin Corp. 950,000 39,722 .12
242,234 .69
Total Capital Equipment 2,544,780 7.22
Consumer Goods
Automobiles (1.45%)
Chrysler Corp. 14,525,000 512,006 1.45
Beverages (.45%)
PepsiCo, Inc. 4,300,000 158,294 .45
Food & Household Products (2.81%)
Colgate-Palmolive Co. 600,000 38,850 .11
CPC International Inc. 2,220,200 219,800 .63
General Mills, Inc. 5,340,600 352,480 1.00
Kellogg Co. 4,357,700 187,653 .53
Procter & Gamble Co. 1,300,000 88,400 .25
Sara Lee Corp. 2,000,000 102,250 .29
989,433 2.81
Health & Personal Care (11.69%)
American Home Products Corp. 7,050,000 522,581 1.48%
Avon Products, Inc. 1,139,800 74,657 .21
Bristol-Myers Squibb Co. 4,725,000 414,619 1.18
Johnson & Johnson 800,000 45,900 .13
Kimberly-Clark Corp. 2,100,000 109,069 .31
Eli Lilly and Co. 11,204,600 749,308 2.13
McKesson Corp. 375,000 40,242 .11
Merck & Co., Inc. 3,900,000 348,075 .99
Pfizer Inc 4,621,200 326,950 .93
Pharmacia & Upjohn, Inc. 8,071,000 256,254 .73
Schering-Plough Corp. 5,594,400 313,636 .89
Warner-Lambert Co. 6,414,200 918,433 2.60
4,119,724 11.69
Recreation & Other Consumer Products (.31%)
Eastman Kodak Co. 1,850,000 110,769 .31
Textiles & Apparel (.21%)
NIKE, Inc., Class B 450,000 21,150 .06
VF Corp. 600,000 53,625 .15
74,775 .21
Total Consumer Goods 5,965,001 16.92
Services
Broadcasting & Publishing (.41%)
Dow Jones & Co., Inc. 1,731,600 80,519 .23
Gannett Co., Inc. 1,200,000 63,075 .18
143,594 .41
Business & Public Services (3.12%)
Browning-Ferris Industries, Inc. 9,300,300 302,260 .86
Cognizant Corp. 3,410,500 133,649 .38
Deluxe Corp. 1,600,000 52,400 .15
Dun & Bradstreet Corp. 4,225,000 120,677 .34
Electronic Data Systems Corp. 4,934,700 190,911 .54
Pitney Bowes Inc. 1,340,700 106,334 .30
Waste Management, Inc. 8,342,540 195,007 .55
1,101,238 3.12
Merchandising (4.88%)
Albertson's, Inc. 11,653,200 429,712 1.22
American Stores Co. 2,006,100 51,532 .15
J.C. Penney Co., Inc. 11,373,500 667,482 1.89
Rite Aid Corp. 1,500,000 89,062 .25
Walgreen Co. 1,000,000 28,125 .08
Wal-Mart Stores, Inc. 12,900,000 453,113 1.29
1,719,026 4.88
Telecommunications (8.72%)
Ameritech Corp. 12,042,300 782,750 2.22%
AT&T Corp. 21,455,700 1,049,988 2.98
Bell Atlantic Corp. 1,700,000 135,787 .38
GTE Corp. 405,400 17,204 .05
SBC Communications Inc. 3,707,175 235,869 .67
Sprint Corp. 2,972,700 154,580 .44
U S WEST Communications Group 17,570,000 699,506 1.98
3,075,684 8.72
Transportation: Rail (1.66%)
CSX Corp. 1,200,000 65,625 .19
Norfolk Southern Corp. 6,105,000 196,123 .56
Union Pacific Corp. 5,270,200 322,800 .91
584,548 1.66
Total Services 6,624,090 18.79
Finance
Banking (14.69%)
Banc One Corp. 3,345,000 174,358 .50
Bank of New York Co., Inc. 13,800,000 649,462 1.84
BankAmerica Corp. 4,000,000 286,000 .81
Bankers Trust New York Corp. 1,940,000 228,920 .65
Barnett Banks, Inc. 2,050,000 141,450 .40
Chase Manhattan Corp. 4,619,300 532,952 1.51
Comerica Inc. 500,000 39,531 .11
CoreStates Financial Corp 6,221,300 452,600 1.28
First Chicago NBD Corp. 5,725,000 416,494 1.18
First Union Corp. 3,800,000 186,438 .53
Fleet Financial Group, Inc. 6,317,400 406,288 1.15
KeyCorp 2,050,000 125,434 .36
J.P. Morgan & Co. Inc. 3,725,000 408,819 1.16
National City Corp. 1,650,000 98,587 .28
NationsBank Corp. 5,000,000 299,375 .85
Norwest Corp. 8,000,000 256,500 .73
Signet Banking Corp. 1,400,000 75,337 .21
SunTrust Banks, Inc. 2,000,000 129,625 .37
Wachovia Corp. 2,050,000 154,391 .44
Wells Fargo & Co. 400,000 116,550 .33
5,179,111 14.69
Financial Services (3.91%)
American Express Co. 2,900,000 226,200 .64%
Beneficial Corp. 2,058,200 157,838 .45
Fannie Mae
(formerly Federal National Mortgage Assn.) 7,300,000 353,594 1.00
Household International, Inc. 5,273,000 597,167 1.70
SLM Holding Corp.
(formerly Student Loan Marketing Assn.) 300,000 42,112 .12
1,376,911 3.91
Insurance (5.99%)
Aetna Inc. 3,200,000 227,400 .65
Allstate Corp. 4,570,000 379,024 1.08
American General Corp. 5,550,000 283,050 .80
CIGNA Corp. 1,050,000 163,012 .46
General Re Corp. 1,955,000 385,502 1.09
Lincoln National Corp. 3,091,100 212,513 .60
Marsh & McLennan Companies, Inc. 2,200,000 156,200 .44
St. Paul Companies, Inc. 3,825,000 305,761 .87
2,112,462 5.99
Total Finance 8,668,484 24.59
Multi-Industry
Multi-Industry (.47%)
AlliedSignal Inc. 2,150,000 77,400 .22
Minnesota Mining and Manufacturing Co. 500,000 45,750 .13
Whitman Corp. 1,625,000 42,656 .12
Total Multi-Industry 165,806 .47
Miscellaneous
Common stocks in initial period of acquisition 1,111,348 3.15
TOTAL INVESTMENT SECURITIES
(cost: $21,422,717,000) 33,754,124 95.75
Excess of United States Treasury bills,
cash, and receivables over payables 1,500,058 4.25
NET ASSETS $35,254,182 100.00%
See Notes to Financial Statements
Financial Statements
Statement of Assets and Liabilities
October 31, 1997
Unaudited (dollars in thousands)
Assets:
Investment securities at market
(cost: $21,422,717) $33,754,124
United States Treasury bills
(cost: $1,553,885) 1,554,187
Cash 169
Receivables for-
Sales of investments $ 70,319
Sales of Fund's shares 98,529
Dividends and interest 68,955 237,803
35,546,283
Liabilities:
Payables for-
Purchases of investments 247,282
Repurchases of Fund's shares 20,686
Management services 9,249
Accrued expenses 14,884 292,101
Net Assets at October 31, 1997
Equivalent to $30.19 per share on
1,167,597,685 shares of $1 par value
capital stock outstanding (authorized
capital stock - 2,000,000,000 shares) $35,254,182
See Notes to Financial Statements
Statement of Operations
for the six months ended October 31, 1997
Unaudited (dollars in thousands)
Investment Income:
Income:
Dividends $ 433,779
Interest 36,678 $ 470,457
Expenses:
Investment management fee 33,712
Business management fee 17,474
Distribution expenses 39,000
Transfer agent fee 9,287
Reports to shareholders 826
Registration statement and prospectus 1,831
Postage, stationery and supplies 2,160
Directors' and Advisory Board fees 275
Auditing and legal fees 103
Custodian fee 178
Other expenses 94 104,940
Net investment income 365,517
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 1,007,669
Net unrealized appreciation:
Beginning of period 8,683,514
End of period 12,331,709
Net change in unrealized appreciation 3,648,195
Net realized gain and change in
unrealized appreciation 4,655,864
Net Increase in Net Assets Resulting
from Operations $5,021,381
See Notes to Financial Statements
Statement of Changes in Net Assets
Six Months Ended Year Ended
(dollars in thousands) October 31, 1997<F1> April 30, 1997
Operations:
Net investment income $ 365,517 $ 617,890
Net realized gain on investments 1,007,669 1,465,728
Net change in unrealized appreciation on
investments 3,648,195 2,795,800
Net Increase in Net Assets Resulting
from Operations 5,021,381 4,879,418
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (326,696) (607,336)
Distributions from net realized gain
on investments - (1,174,688)
Total Dividends and Distributions (326,696) (1,782,024)
Capital Share Transactions:
Proceeds from shares sold:
124,997,117 and 215,746,819 shares,
respectively 3,675,512 5,311,956
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
10,072,800 and 67,871,052 shares,
respectively 301,514 1,671,650
Cost of shares repurchased:
53,678,327 and 105,990,667 shares,
respectively (1,582,525) (2,605,406)
Net Increase in Net Assets Resulting
from Capital Share Transactions 2,394,501 4,378,200
Total Increase in Net Assets 7,089,186 7,475,594
Net Assets:
Beginning of period 28,164,996 20,689,402
End of period (including undistributed
net investment income: $121,319 and
$82,498, respectively) $35,254,182 $28,164,996
<F1> Unaudited
See Notes to Financial Statements
Notes to Financial Statements Unaudited
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 Fund's investment objective is to produce income
and to provide an opportunity for growth of principal consistent with sound
common stock investing. 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 a national securities exchange on the
day of valuation 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. Securities for which representative market quotations are not
readily available are valued at fair value as determined in good faith
under policies approved by the Fund's Board.
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.
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 October 31, 1997, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $12,331,709,000, of which
$12,498,841,000 related to appreciated securities and $167,132,000 related
to depreciated securities. There was no difference between book and tax
realized gains on securities transactions for the six months ended October
31, 1997. The cost of portfolio securities for book and federal income tax
purposes was $22,976,602,000 at October 31, 1997.
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. WMC, business manager of the Fund, was paid a fee of
$17,474,000 for business management services. The business management
agreement provides for monthly fees, accrued daily, based on an annual rate
of 0.175% of the first $3 billion of net assets; 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; 0.095% of such assets
in excess of $12 billion but not exceeding $21 billion; 0.075% of such
assets in excess of $21 billion but not exceeding $34 billion; and 0.06% of
net assets in excess of $34 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 $488,000 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 officers of the Fund and five 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 $33,712,000 for
investment management services. The investment advisory agreement provides
for monthly fees, accrued daily, based on an annual rate of 0.225% of the
first $3 billion of net assets; 0.21% of such assets in excess of $3
billion but not exceeding $8 billion; 0.20% of such assets in excess of $8
billion but not exceeding $21 billion; 0.195% of such assets in excess of
$21 billion but not exceeding $34 billion; and 0.19% of net assets in
excess of $34 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 six months ended October
31, 1997, distribution expenses under the Plan were $39,000,000, including
accrued and unpaid expenses of $11,737,000.
AFD has informed the Fund that it has received $15,913,000 (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.
American Funds Service Company, the transfer agent for the Fund, was
paid a fee of $9,287,000.
Directors and Advisory Board members of the Fund who are unaffiliated
with WMC may elect to defer part or all of the fees earned for such
services. Amounts deferred are not funded and are general unsecured
liabilities of the Fund. As of October 31, 1997, aggregate amounts
deferred and earnings thereon were $328,000.
4. As of October 31, 1997, accumulated undistributed net realized gain
on investments was $1,954,792,000 and additional paid-in capital was
$19,678,764,000.
The Fund made purchases and sales of investment securities, excluding
short-term securities, of $4,656,001,000 and $2,696,533,000, respectively,
during the six months ended October 31, 1997.
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 $178,000 included $37,000 that was
paid by these credits rather than in cash.
The Fund owns 5.4% of the outstanding voting securities of Westvaco
Corp. and thus is considered an affiliate as defined in the Investment
Company Act of 1940.
<TABLE>
<CAPTION>
Per-Share Data and Ratios
Six Months
Ended Year Ended April 30
10/31/97<F1> 1997 1996 1995 1994 1993
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period $25.93 $22.77 $18.87 $17.11 $17.59 $16.22
Income from Investment
Operations:
Net investment income .32 .62 .63 .63 .59 .56
Net realized and
unrealized gain (loss)
on investments 4.23 4.36 4.98 2.16 (.12) 1.55
Total income from
investment operations 4.55 4.98 5.61 2.79 .47 2.11
Less Distributions:
Dividends from net
investment income (.29) (.62) (.62) (.62) (.56) (.56)
Distributions from net
realized gains - (1.20) (1.09) (.41) (.39) (.18)
Total distributions (.29) (1.82) (1.71) (1.03) (.95) (.74)
Net Asset Value,
End of Period $30.19 $25.93 $22.77 $18.87 $17.11 $17.59
Total Return<F2> 17.56%<F3> 22.43% 30.40% 17.01% 2.55% 13.36%
Ratios/Supplemental Data:
Net assets, end of
period (in millions) $35,254 $28,165 $20,689 $14,426 $12,405 $11,306
Ratio of expenses to
average net assets .32%<F3> .64% .66% .69% .69% .70%
Ratio of net income to
average net assets 1.12% 2.56% 2.98% 3.57% 3.29% 3.33%
Average commissions paid<F4> 5.02cents 5.29cents 6.24cents 6.87cents 6.85cents 7.49cents
Portfolio turnover rate 8.60%<F3> 20.41% 23.41% 25.45% 23.86% 18.60%
<FN>
<F1> Unaudited
<F2> Excludes maximum sales charge of 5.75% of the Fund's offering price.
Total Return figure for 1993 has been revised. Previously shown for that
year was 13.38%.
<F3> Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
<F4> Brokerage commissions paid on portfolio transactions increase the cost
of securities purchased or reduce the proceeds of securities sold, and are
not separately reflected in the Fund's Statement of Operations. Shares
traded on a principal basis are excluded.
</FN>
</TABLE>
Board of Directors
Stephen Hartwell
Chairman of the Board
James H. Lemon, Jr.
Vice Chairman of the Board
Harry J. Lister
President of the Fund
Cyrus A. Ansary
John A. Beck
Fred J. Brinkman
Daniel J. Callahan III
James C. Miller III
Thomas J. Owen
Jean Head Sisco
T. Eugene Smith
Leonard P. Steuart II
Margita E. White
Stephen G. Yeonas
Directors Emeritus
Bernard J. Nees
Chairman Emeritus
Charles T. Akre
Nathan A. Baily
Advisory Board
Charles A. Bowsher
Mary K. Bush
Vernon W. Holleman, Jr.
Katherine D. Ortega
J. Knox Singleton
William B. Snyder
Robert F. Tardio
Other Officers
Howard L. Kitzmiller
Senior Vice President, Secretary and Assistant Treasurer of the Fund
Ralph S. Richard
Vice President and Treasurer of the Fund
Lois A. Erhard
Vice President of the Fund
Michael W. Stockton
Assistant Vice President, Assistant Secretary
and Assistant Treasurer of the Fund
For information about your account or any of the Fund's services, please
contact your financial adviser. You may also call American Funds Service
Company, toll-free, at 800/421-0180 or visit www.americanfunds.com on the
World Wide Web.
Office of the Fund
and of 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 Boulevard
Brea, CA 92821-5804
Transfer Agent
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, CA 92822-2205
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
One Chase Manhattan Plaza
New York, NY 10081-0001
Counsel
Thompson, O'Donnell, Markham, Norton & Hannon
805 Fifteenth Street, NW
Washington, DC 20005-2216
Principal Underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1462
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 December 31, 1997, this report
must be accompanied by an American Funds Group Statistical Update for the
most recently completed calendar quarter.
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