Washington Mutual
Investors Fund
For the Quarter Ended
January 31, 1998
(Logo)
The American Funds Group (R)
Fellow Shareholders
During the third quarter of its fiscal year, Washington Mutual Investors
Fund made excellent progress in an environment of positive economic news in
the U.S. Incomes rose, job growth continued at a healthy pace, inflation
remained under control, and long-term interest rates moved lower. For the
three months ended January 31, the value of the Fund's shares rose 6.8%
including reinvestment of distributions. During the same period, the
unmanaged Standard & Poor's 500 Composite Stock Index recorded a total
return of 7.6%. For the nine months ended January 31, your Fund gained
25.6% versus 23.9% for the S&P 500 (both including reinvestment).
We are pleased to note that, in the January 12th edition of Barron's,
Washington Mutual received special recognition for its strong showing in
calendar 1997. An article in that issue also cited the Fund's favorable
longer term record and profiled its investment adviser.
The portfolio listed in this report reflects ownership in 152 companies in
28 industries. The five largest industry positions as a percent of net
assets on January 31 were: Banking (14.0%), Health & Personal Care (10.5%),
Telecommunications (9.9%), Energy Sources (9.4%) and Electric & Gas
Utilities (8.7%).
Two banks in the portfolio were acquired in the November-January quarter:
Barnett Banks, by NationsBank; and Signet Banking, by First Union. Also,
three companies in the portfolio changed names: CPC International became
Bestfoods, Consolidated Edison Company of New York became Consolidated
Edison, and Union Electric combined with CIPSCO and adopted a new name,
Ameren. In addition, eight new names have appeared in the portfolio: Aon,
Baxter International, Entergy, IKON Office Solutions (and IKON Office
Solutions, convertible preferred, Series BB), Mallinckrodt, New Century
Energies, Rubbermaid and Weyerhaeuser. Five securities were eliminated:
Colgate-Palmolive, GTE, PG&E, Rockwell International and Solutia.
While Washington Mutual is not immune to the type of market volatility that
often accompanies unexpected events such as the Asian crisis, we believe
your Fund's value orientation and strict investment standards should
continue to temper the impact of severe price swings in the future.
Accordingly, we encourage shareholders to maintain a long-term view of
their holdings.
As always, we welcome your questions and comments.
Cordially,
(Signatures)
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman Vice Chairman President
March 12, 1998
Fund results in this report were computed without a sales charge
unless otherwise indicated. Here are the Fund's total returns and average
annual compound returns with all distributions reinvested for periods ended
December 31, 1997 (the most recent calendar quarter), assuming payment of
the 5.75% maximum sales charge at the beginning of the stated periods - 10
years: +375.95% or +16.88%, a year; 5 years: +142.23% or +19.38% a year; 12
months: +25.61%. Sales charges are lower for accounts of $50,000 or more.
THE FIGURES SHOWN REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE RESULTS. 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
AGENCY, ENTITY OR PERSON.
Your Investment Account
As of January 31, 1998
Each $1,000 of Net Assets Represented:
Which Has
This Paid
Amount Dividends
Invested In This Company Since
$ 6.28 Aetna Inc. 1934
14.28 Albertson's, Inc. 1960
3.10 AlliedSignal Inc. 1887
9.94 Allstate Corp. 1993
5.31 Ameren Corp. (formerly Union Electric Co.) 1906
4.25 American Electric Power Co., Inc. 1909
6.24 American Express Co. 1870
8.62 American General Corp. 1929
5.64 American Home Products Corp. 1919
1.99 American Stores Co. 1949
27.24 Ameritech Corp. 1984
14.73 Amoco Corp. 1894
2.93 AMP Inc. 1951
4.52 Aon Corp. 1950
.86 Atlantic Energy, Inc. 1919
25.26 Atlantic Richfield Co. 1927
34.25 AT&T Corp. 1881
3.61 Avon Products, Inc. 1919
1.56 Baltimore Gas and Electric Co. 1910
4.80 Banc One Corp. 1935
17.98 Bank of New York Co., Inc. 1785
7.31 BankAmerica Corp. 1989
5.20 Bankers Trust New York Corp. 1904
6.30 Baxter International Inc. 1934
4.04 Bell Atlantic Corp. 1984
3.92 Beneficial Corp. 1929
5.56 Bestfoods (formerly CPC International Inc.) 1920
2.96 Boeing Co. 1942
10.63 Bristol-Myers Squibb Co. 1900
8.26 Browning-Ferris Industries, Inc. 1950
4.18 Carolina Power & Light Co. 1937
3.93 Caterpillar Inc. 1914
3.29 Central and South West Corp. 1947
16.68 Chase Manhattan Corp. 1827
10.77 Chevron Corp. 1912
14.50 Chrysler Corp. 1984
5.23 CIGNA Corp. 1867
.62 CINergy Corp. 1853
3.07 Cognizant Corp. 1997
.97 Comerica Inc. 1936
6.37 Consolidated Edison, Inc.
(formerly Consolidated Edison Co.
of New York, Inc.) 1885
2.93 Consolidated Natural Gas Co. 1944
12.77 CoreStates Financial Corp 1844
1.63 CSX Corp. 1922
4.15 Dana Corp. 1936
1.36 Deluxe Corp. 1921
.61 Dominion Resources, Inc. 1925
2.24 Dow Jones & Co., Inc. 1906
1.56 Dresser Industries, Inc. 1948
3.56 DTE Energy Co. 1909
11.56 Duke Energy Corp. 1926
1.31 Dun & Bradstreet Corp. 1934
17.37 E.I. du Pont de Nemours and Co. 1904
8.06 Eastman Kodak Co. 1902
4.84 Eaton Corp. 1923
1.46 Echlin Inc. 1950
3.58 Edison International 1909
5.28 Electronic Data Systems Corp. 1984
3.31 Emerson Electric Co. 1947
1.30 Enova Corp. 1909
1.62 Entergy Corp. 1988
3.35 Exxon Corp. 1882
10.87 Fannie Mae 1956
8.73 First Chicago NBD Corp. 1996
9.93 First Union Corp. 1914
7.07 Fleet Financial Group, Inc. 1791
4.76 Florida Progress Corp. 1937
2.36 FPL Group, Inc. 1944
1.87 Gannett Co., Inc. 1929
1.79 General Electric Co. 1899
9.37 General Mills, Inc. 1898
10.46 General Re Corp. 1934
7.49 Genuine Parts Co. 1948
3.54 Goodyear Tire & Rubber Co. 1937
1.72 GPU, Inc. 1987
16.87 Household International, Inc. 1926
$ 1.88 Houston Industries Inc. 1922
2.39 IKON Office Solutions, Inc. 1965
.61 IKON Office Solutions, Inc., convertible
preferred, Series BB 1995
1.03 Ingersoll-Rand Co. 1910
.87 International Flavors & Fragrances Inc. 1956
14.85 International Paper Co. 1946
1.38 Johnson & Johnson 1901
5.21 Johnson Controls, Inc. 1944
4.99 Kellogg Co. 1923
3.78 Kerr-McGee Corp. 1941
6.35 KeyCorp 1963
.79 KeySpan Energy Corp. 1949
.54 Kimberly-Clark Corp. 1935
17.77 Eli Lilly and Co. 1885
6.27 Lincoln National Corp. 1920
2.80 Louisiana-Pacific Corp. 1973
1.79 Mallinckrodt Inc. 1971
4.18 Marsh & McLennan Companies, Inc. 1923
.92 McKesson Corp. 1995
6.03 Merck & Co., Inc. 1935
1.07 Minnesota Mining and Manufacturing Co. 1916
6.09 Mobil Corp. 1902
4.63 Monsanto Co. 1925
11.38 J.P. Morgan & Co. Inc. 1892
1.39 National City Corp. 1936
11.46 NationsBank Corp. 1903
2.46 New Century Energies, Inc. 1997
.77 NIKE, Inc., Class B 1984
5.39 Norfolk Southern Corp. 1901
7.51 Norwest Corp. 1939
.54 OGE Energy Corp. 1908
1.07 Parker Hannifin Corp. 1949
1.22 PECO Energy Co. 1902
19.70 J.C. Penney Co., Inc. 1922
3.99 PepsiCo, Inc. 1952
9.73 Pfizer Inc 1901
6.72 Pharmacia & Upjohn, Inc. 1996
4.44 Phelps Dodge Corp. 1987
2.12 Pitney Bowes Inc. 1934
8.35 PPG Industries, Inc. 1899
3.77 PP & L Resources, Inc. 1946
2.62 Procter & Gamble Co. 1891
3.04 Public Service Enterprise Group Inc. 1907
2.04 Puget Sound Energy, Inc. 1943
7.57 Raytheon Co. 1964
2.41 Rite Aid Corp. 1968
2.51 Rubbermaid Inc. 1941
2.80 Sara Lee Corp. 1946
6.61 SBC Communications Inc. 1984
9.95 Schering-Plough Corp. 1952
2.20 Sherwin-Williams Co. 1979
1.14 SLM Holding Corp. 1983
9.94 Southern Co. 1948
5.04 Sprint Corp. 1939
9.22 St. Paul Companies, Inc. 1872
3.56 SunTrust Banks, Inc. 1985
25.69 Texaco Inc. 1903
1.29 Thomas & Betts Corp. 1934
3.66 TRW Inc. 1936
8.67 Union Pacific Corp. 1900
5.53 United Technologies Corp. 1936
4.77 Unocal Corp. 1916
21.73 U S WEST Communications Group 1984
1.43 VF Corp. 1941
4.10 Wachovia Corp. 1936
.85 Walgreen Co. 1933
11.22 Wal-Mart Stores, Inc. 1973
26.26 Warner-Lambert Co. 1926
5.63 Waste Management, Inc. 1976
3.18 Wells Fargo & Co. 1936
4.59 Westvaco Corp. 1892
5.03 Weyerhaeuser Co. 1933
.69 Whitman Corp. 1950
2.07 Willamette Industries, Inc. 1962
.43 Wisconsin Energy Corp. 1939
.62 Witco Corp. 1950
9.28 Xerox Corp. 1930
Stocks in initial period of acquisition - $25.97
Excess of United States Treasury bills, cash, and
receivables over payables - $40.57
On January 31, 1998 the Fund's net asset value per share
was $30.38, and net assets were $38,906,945,934
Each $1,000 of Net Assets Was Invested In These Industries:
Energy
Energy Sources $94.44
Utilities: Electric & Gas 86.54
Materials
Chemicals 35.84
Forest Products & Paper 29.33
Metals: Nonferrous 4.44
Capital Equipment
Aerospace & Military Technology 16.06
Data Processing & Reproduction 9.28
Electrical & Electronics 5.11
Electronic Components 4.22
Energy Equipment 1.56
Industrial Components 30.35
Machinery & Engineering 6.03
Consumer Goods
Appliances & Household
Durables $ 2.51
Automobiles 14.50
Beverages 3.99
Food & Household Products 25.34
Health & Personal Care 105.48
Recreation & Other Consumer
Products 8.06
Textiles & Apparel 2.20
Services
Broadcasting & Publishing 4.10
Business & Public Services 30.03
Merchandising 50.45
Telecommunications 98.92
Transportation: Rail 15.70
Finance
Banking $140.35
Financial Services 39.04
Insurance 64.72
Multi-Industry
Multi-Industry 4.87
Stocks in initial period
of acquisition 25.97
Excess of United States
Treasury bills, cash, and
receivables over payables 40.57
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
and accompanied by an American Funds Group Statistical Update for the most
recently completed calendar quarter.
Washington Mutual Investors Fund
Directors
Stephen Hartwell, Chairman
James H. Lemon, Jr., Vice Chairman
Harry J. Lister, President
Cyrus A. Ansary
Fred J. Brinkman
Daniel J. Callahan III
James C. Miller III
T. Eugene Smith
Leonard P. Steuart, II
Margita E. White
Advisory Board
Charles A. Bowsher
Mary K. Bush
Vernon W. Holleman, Jr.
Katherine D. Ortega
J. Knox Singleton
William B. Snyder
Robert F. Tardio
Directors Emeritus
Bernard J. Nees, Chairman Emeritus
Charles T. Akre
Nathan A. Baily
John A. Beck
Jean Head Sisco
Stephen G. Yeonas
OTHER OFFICERS
Howard L. Kitzmiller
Ralph S. Richard
Lois A. Erhard
Michael W. Stockton
J. Lanier Frank
We are sad to report the death of Thomas J. Owen on December 13, 1997. Mr.
Owen had served the Fund as a Director since August 15, 1983; his wise
counsel and friendship will be greatly missed.
Washington Mutual Investors Fund
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
(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
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.
WMIF-012-0398
