Washington Mutual Investors Fund
(Graphic)
Report to Shareholders
For the Quarter Ended
January 31, 1997
(Logo)
The American Funds Group(R)
Fellow Shareholders
During the three months ended January 31 - the third quarter of our
fiscal year - Washington Mutual Investors Fund continued to participate in
the robust advance of the stock market. The unmanaged Standard & Poor's
500 Composite Index rose 12.2% while the value of the Fund's shares
increased 9.3%, both including reinvestment.
During this period, the indicators of economic activity were quite
strong. Despite this, inflationary pressures remained subdued, and the
Federal Reserve maintained its policy of watchful waiting, having made no
change in short-term interest rates over the past year.
Dividend increases by companies in the Fund's portfolio continued at a
brisk pace. During the three months, 29 companies - about 20% of all firms
represented in the portfolio - acted to raise their dividends.
The 141 companies listed in this report represent 27 industries. On
January 31, the ten largest industry positions as a percentage of net
assets were: Banking (15.4%), Health & Personal Care (12.0%), Energy
Sources (10.9%), Electric & Gas Utilities (8.9%), Telecommunications
(8.7%), Insurance (6.2%), Chemicals (4.3%), Business & Public Services
(4.2%), Financial Services (3.7%) and Merchandising (3.4%).
Five new names have appeared in the portfolio since October 31:
ACNielsen and Cognizant (both spun off from Dun & Bradstreet), CSX, FPL
Group and NCR (a spinoff from AT&T). Three names were eliminated: ALLTEL,
Ashland and Johnson Controls.
We plan to report to you in greater detail after the close of the
Fund's fiscal year April 30. Meanwhile, we welcome your questions and
comments.
Cordially,
(Signature) (Signature) (Signature)
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman Vice Chairman President
March 12, 1997
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, 1997
Each $1,000 of Net Assets Represented:
Which
This Has Paid
Amount Dividends
Invested In This Company Since
$ 1.46 ACNielsen Corp.
('96 spinoff from
Dun & Bradstreet Corp.) -
7.05 Aetna Inc. 1934
3.91 Albertson's, Inc. 1964
2.81 AlliedSignal Inc. 1920
13.21 Allstate Corp. 1993
5.73 American Electric
Power Company, Inc. 1910
8.66 American Express Co. 1870
10.38 American General Corp. 1929
18.41 American Home
Products Corp. 1919
24.70 Ameritech Corp. 1984
24.11 Amoco Corp. 1894
1.06 Atlantic Energy, Inc. 1937
26.57 Atlantic Richfield Co. 1927
23.58 AT&T Corp. 1881
2.05 Baltimore Gas and
Electric Co. 1910
6.45 Banc One Corp. 1968
18.80 Bank of New York
Co., Inc. 1785
9.45 BankAmerica Corp. 1968
5.14 Bankers Trust
New York Corp. 1904
3.03 Barnett Banks, Inc. 1945
3.68 Bell Atlantic Corp. 1984
6.37 Beneficial Corp. 1929
2.33 Boeing Co. 1942
12.57 Bristol-Myers Squibb Co. 1900
.99 Brooklyn Union Gas Co. 1949
9.41 Browning-Ferris
Industries, Inc. 1965
3.93 Carolina Power & Light Co. 1937
1.93 Central and South
West Corp. 1947
12.39 Chase Manhattan Corp. 1969
15.86 Chevron Corp. 1912
6.20 CIGNA Corp. 1981
.90 CINergy Corp. 1940
6.24 Cognizant Corp.
('96 spinoff from
Dun & Bradstreet Corp.) -
3.24 Colgate-Palmolive Co. 1895
2.02 Comerica Inc. 1972
2.91 Conrail, Inc. 1987
6.92 Consolidated Edison Co.
of New York, Inc. 1885
4.35 Consolidated Natural
Gas Co. 1944
8.60 CoreStates Financial Corp 1970
5.69 CPC International Inc. 1920
1.35 CSX Corp. 1922
3.45 Dana Corp. 1936
.69 Deluxe Corp. 1967
.88 Dominion Resources, Inc. 1925
$ .74 Dow Jones & Co., Inc. 1962
2.14 Dresser Industries, Inc. 1943
3.93 DTE Energy Co. 1909
5.49 Duke Power Co. 1926
7.43 Dun & Bradstreet Corp. 1934
30.15 E.I. du Pont de Nemours
and Co. 1904
1.61 Eastman Kodak Co. 1902
5.47 Eaton Corp. 1923
5.39 Edison International 1910
3.12 Emerson Electric Co. 1940
10.22 Exxon Corp. 1882
11.46 Federal National
Mortgage Assn. 1955
10.57 First Chicago NBD Corp. 1936
8.94 First Union Corp. 1989
11.93 Fleet Financial Group, Inc. 1968
4.11 Florida Progress Corp. 1982
1.81 FPL Group, Inc. 1944
2.57 Gannett Co., Inc. 1929
3.83 General Electric Co. 1899
12.62 General Mills, Inc. 1928
10.54 General Re Corp. 1980
4.46 Goodyear Tire &
Rubber Co. 1899
3.50 GTE Corp. 1936
10.38 Household
International, Inc. 1926
4.19 Houston Industries Inc. 1922
1.15 Ingersoll-Rand Co. 1905
15.89 International Paper Co. 1946
2.14 Johnson & Johnson 1934
4.60 Kerr-McGee Corp. 1937
3.60 KeyCorp 1961
7.87 Kimberly-Clark Corp. 1923
19.45 Eli Lilly and Co. 1885
5.19 Lincoln National Corp. 1920
2.70 Louisiana-Pacific Corp. 1973
.61 Lucent Technologies Inc. 1996
4.41 Marsh & McLennan
Companies, Inc. 1923
1.60 Masco Corp. 1936
.76 Maytag Corp. 1946
.82 McKesson Corp. 1962
16.54 Merck & Co., Inc. 1935
1.82 Minnesota Mining and
Manufacturing Co. 1916
2.17 Mobil Corp. 1902
4.79 Monsanto Co. 1925
9.69 J.P. Morgan & Co. Inc. 1892
3.97 National City Corp. 1972
12.45 NationsBank Corp. 1968
.40 NCR Corp.
('96 spinoff from
AT&T Corp.) -
8.31 Norfolk Southern Corp. 1901
3.13 Northeast Utilities 1927
$ 7.09 Norwest Corp. 1939
.63 OGE Energy Corp.
(formerly Oklahoma
Gas and Electric Co.) 1943
3.77 PG&E Corp. (formerly
Pacific Gas and
Electric Co.) 1912
4.23 Pacific Telesis Group 1984
4.38 PanEnergy Corp. 1937
1.93 Parker Hannifin Corp. 1940
3.42 PECO Energy Co. 1928
16.87 J.C. Penney Co., Inc. 1926
9.67 PepsiCo, Inc. 1921
4.87 Pfizer Inc 1925
7.52 Pharmacia & Upjohn, Inc. 1959
8.00 Pitney Bowes Inc. 1934
6.51 PNC Bank Corp. 1865
4.58 PPG Industries, Inc. 1899
3.96 PP & L Resources, Inc. 1994
3.65 Procter & Gamble Co. 1905
3.89 Public Service Enterprise
Group Inc. 1948
.76 Puget Sound Power &
Light Co. 1943
8.11 Raytheon Co. 1964
3.02 Rockwell International
Corp. 1948
2.57 Sara Lee Corp. 1946
5.33 SBC Communications Inc. 1984
7.74 Schering-Plough Corp. 1952
3.10 Sherwin-Williams Co. 1885
1.56 Signet Banking Corp. 1962
5.90 Southern Co. 1947
.76 Sprint Corp. 1939
4.59 St. Paul Companies, Inc. 1968
6.16 SunTrust Banks, Inc. 1985
1.63 Tambrands Inc. 1941
19.59 Texaco Inc. 1903
1.78 Thomas & Betts Corp. 1934
5.29 TRW Inc. 1936
5.51 Union Electric Co. 1953
9.37 Union Pacific Corp. 1968
.42 Union Pacific Resources
Group, Inc. 1996
2.85 United Technologies Corp. 1936
5.48 Unocal Corp. 1916
20.88 U S WEST
Communications Group 1984
1.48 VF Corp. 1941
5.68 Wachovia Corp. 1936
2.76 Walgreen Co. 1899
10.55 Wal-Mart Stores, Inc. 1971
20.11 Warner-Lambert Co. 1926
5.99 Westvaco Corp. 1899
1.39 Whitman Corp. 1963
8.31 WMX Technologies, Inc. 1975
9.46 Xerox Corp. 1930
Stocks in initial period of acquisition - $29.06
Excess of United States Treasury bills, cash,
and receivables over payables - $37.72
On January 31, 1997 the Fund's net asset value per share
was $25.69, and net assets were $26,882,812,282
Each $1,000 of Net Assets Was Invested In These Industries:
Energy
Energy Sources $109.03
Utilities: Electric & Gas 89.00
Materials
Building Materials & Components 1.61
Chemicals 42.61
Forest Products & Paper 24.58
Capital Equipment
Aerospace & Military Technology 13.30
Data Processing & Reproduction 9.47
Electrical & Electronics 7.56
Electronic Components 1.78
Energy Equipment 2.14
Industrial Components 21.68
Machinery & Engineering 3.07
Consumer Goods
Appliances & Household
Durables .76
Beverages 9.67
Food & Household Products 27.77
Health & Personal Care 119.68
Recreation & Other Consumer
Products 1.61
Textiles & Apparel 1.49
Services
Broadcasting & Publishing 3.30
Business & Public Services 41.94
Merchandising 34.09
Telecommunications 86.65
Transportation: Rail 21.94
Finance
Banking 154.01
Financial Services 36.88
Insurance 61.58
Multi-Industry
Multi-Industry 6.02
Stocks in initial period of
acquisition 29.06
Excess of United States
Treasury bills, cash, and
receivables over payables 37.72
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
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
Advisory Board
Mary K. Bush
Vernon W. Holleman, Jr.
William B. Snyder
Robert F. Tardio
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 92821-5804
Counsel
Thompson, O'Donnell, Markham, Norton & Hannon
805 Fifteenth Street, NW
Washington, DC 20005-2216
Custodian
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, NY 10081-0001
Transfer Agent
American Funds Service Company
800/421-0180
(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
Principal Underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1462
W. Reid Thompson retired from the Fund's Advisory Board on
September 19, 1996 after completing 24 1/2 years of outstanding service.
We will miss his wise counsel.
WMIF-012-0397
