(Logo)
The American Funds Group(R)
Washington Mutual Investors Fund
1998 Annual Report
(Photo)
About Our Cover:
The sweeping panorama of our nation's capital at dawn was captured by
award-winning photographer/author Fred J. Maroon of Washington, D.C.
Fred's work has been exhibited at the Museum of Modern Art in New York. It
has also been featured in magazines including National Geographic,
Smithsonian, Paris Match, Travel & Leisure, Life, and Esquire. Among his
many awards have been four first prizes in the White House News
Photographers' Association annual competition.
Over the years Fred has authored 11 books, collaborating with Eric
Severeid, Hugh Sidey, and Fred's wife, Suzy Maroon. Several of the books
have focused on Washington, D.C., including Washington: Magnificent
Capital, The United States Capitol, and Maroon on Georgetown.
We are pleased to note that Fred has been a shareholder in Washington
Mutual Investors Fund since 1968. This report features a number of other
shareholders, explaining how they use the Fund. We hope you enjoy meeting
them, on pages 6 through 13.
Washington Mutual Investors Fund seeks to provide income and growth of
principal through investments in quality common stocks.
Washington Mutual Investors Fund is one of the 28 funds in The American
Funds Group,(R) managed by Capital Research and Management Company. Since
1931, Capital has invested with a long-term focus based on thorough
research and attention to risk.
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 March
31, 1998 (the most recent calendar quarter), assuming payment of the 5.75%
maximum sales charge at the beginning of the stated periods - 10 years:
+397.00%, or +17.39% a year; 5 years: +154.11%, or +20.50% a year; 12
months: +36.79%. Sales charges are lower for accounts of $50,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE RESULTS. ALL INVESTMENTS ARE SUBJECT TO CERTAIN RISKS INCLUDING
STOCK MARKET FLUCTUATIONS. THE RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
Fellow Shareholders
Fiscal 1998 was another highly successful year for Washington Mutual
Investors Fund. In the 12 months ended April 30, the value of your
holdings rose 40.8%, assuming reinvestment of all distributions. During
this period, the unmanaged Standard & Poor's 500 Composite Index recorded a
nearly identical gain of 41.0% on a total return basis.
In our annual report a year ago, we expressed concern about the continuing
rise in common stock valuations and the protracted bull market. In the
past, economic expansions accompanying such markets typically have given
rise to upward pressure on wages and prices. Currently, however, inflation
remains subdued despite low unemployment. Global commodity prices have
weakened, and stiffer competition from abroad has had a restraining effect
on the pricing policies of many U.S. corporations. Meanwhile, the U.S.
economy has continued to grow and produce higher earnings for most of the
industries and companies in which your Fund has invested.
Because it is unclear how long these conditions will prevail, it seems
appropriate to remind you that stock prices go down as well as up, and to
avoid letting recent returns create unrealistic expectations. When this
market enters a period of decline, your Fund's share value, undoubtedly,
will decline as well. It is worth noting that, in the past, our strict
criteria for investment have moderated decreases in share value. These
criteria emphasize financially solid companies listed on the New York
Stock Exchange with impressive records of dividend payments. During the
fourth quarter of this past fiscal year, 35 of your Fund's holdings
announced dividend increases. This brings the total dividend increases to
96 or 60% of the portfolio during the fiscal year.
Since we last reported to you in January, 10 new securities have appeared
in Washington Mutual's portfolio: Colgate-Palmolive, Hewlett-Packard,
Jefferson-Pilot, May Department Stores, McDonald's, Motorola, Rockwell
International, Sears, Texas Instruments and Whirlpool. Conectiv, a new
name appearing in the portfolio, was formed by the merger of Atlantic
Energy (a Fund holding) and Delmarva Power & Light. Three holdings were
eliminated: CoreStates Financial (acquired by First Union), Echlin and
National City.
Washington Mutual continues to grow. We have now become the nation's
largest actively managed growth and income fund, according to Lipper
Analytical Services. Our family of investors is made up of more than one
and a half million shareholder accounts. A feature starting on page 6 of
this report describes how the Fund is being used by different types of
investors. Along with this article, you will find a chart showing the
major categories of Washington Mutual shareholders. Given the Fund's
long-term record of growth and rising income, it is not surprising that
retirement plans constitute the largest single group.
We are always pleased to receive questions and comments from our investors.
Because a wide range of information is now available from your financial
adviser and the American Funds Web site (www.americanfunds.com), we have
joined other funds in The American Funds Group in eliminating quarterly
reports. Our next formal report to shareholders will cover the six months
ending October 31, 1998.
Cordially,
(Signature) (Signature) Signature
Stephen Hartwell James H. Lemon, Jr. Harry J. Lister
Chairman of the Board Vice Chairman of the Board President of the Fund
June 1, 1998
Investment Manager's Report
The spectacular advance recorded by the U.S. stock market in fiscal 1998 -
41% as measured by the S&P 500 - was approximately three times the average
yearly increase posted by the index over the past three decades.
Washington Mutual, which pursues a policy of being at least 95% invested in
equities, participated fully in the advance. Of 139 stocks held in the
portfolio throughout the fiscal year, 131 rose in price. The Fund's
12-month total return essentially matched that of the index and was nearly
triple the Fund's average compounded yearly gain of 14.1% generated since
operations began in 1952. <F1>
A Remarkable Four-Year Period
Fiscal 1998 was the fourth consecutive fiscal year in which Washington
Mutual's results exceeded its average lifetime annual compounded return.
The 40.8% gain in 1998 followed increases of 22.4% in 1997, 30.4% in 1996
and 17.0% in 1995. For this four-year period, the total return was 163.0%,
a compounded average of 27.3% a year. While these results are highly
gratifying, it would be quite unrealistic to expect that your Fund can
continue compounding at this pace.
The dramatic rise we have witnessed in the stock market - 169.6% for the
four years as measured by the S&P 500 - has been supported by a massive
inflow of money into mutual funds and an inflow into U.S. equities from
abroad. Fundamentally, the market has been propelled upward by an ideal
combination of strong growth, low inflation and declining interest rates.
Currently, our economy is beginning its eighth year of a broad expansion.
The jobless rate is at the lowest level in more than two decades, and
industrial output as a percentage of capacity remains high. Producer and
consumer prices have risen surprisingly little considering the strength of
the expansion. During the nineties, the Consumer Price Index has increased
an average of just 3.1% a year.
In an environment of low inflation, the Federal Reserve has been able to
pursue an accommodating monetary policy. This has stimulated home buying
and purchases of cars and other consumer durables. It, also, has enabled
corporations to hold down borrowing costs, further enhancing their
profitability. Earnings generally have been satisfactory - exceeding
estimates in many cases and, more recently, confounding those who feared
that Asia's economic troubles would have an immediate and severe impact on
business in the United States. Instead, our economy has continued to
expand, perhaps a bit too rapidly.
Comparative Results and Diversification
Washington Mutual has continued to do well relative to the vast majority of
its peers. According to Lipper Analytical Services, it ranked in the top
8% (fourth of 54) among growth-and-income funds in existence throughout the
past 30 fiscal years; for the 10 years, it ranked in the top 14% (19th of
140); for the five years, in the top 15% (38th of 260); and for the 12
months ended April 30, in the top 20% (128th of 657). (Lipper rankings are
based on total return and do not reflect the effect of sales charges.)
The portfolio which begins on page 14 shows how the Fund's assets were
diversified at fiscal year-end. The largest industry positions were
Banking, with 14.5% of net assets, followed by Energy Sources (10.2%),
Health & Personal Care (9.3%), Telecommunications (8.8%) and Electric & Gas
Utilities (8.3%). Our five largest individual investments were AT&T,
Texaco, First Union, Atlantic Richfield and Warner-Lambert.
We will continue to focus our research efforts on identifying long-term
investment opportunities which meet Washington Mutual's strict standards.
Meanwhile, we encourage shareholders to maintain a long-term perspective on
their holdings.
[FN]
<F1> All figures in this report include reinvestment of distributions,
unless otherwise indicated.
</FN>
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, 1998.
As you can see, that $10,000 investment in Washington Mutual, with all
distributions reinvested, would have grown to $3,890,245. Over the same
period, that $10,000 would have grown to $2,409,228 in the unmanaged
Standard & Poor's 500 Composite Index of U.S. common stocks and to $98,519
in the average savings institution<F1> 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, 1988. At that time, according to the table, the value
of the investment illustrated here was $742,854. Since then it has gone up
more than fivefold to $3,890,245. Thus, in the same 10-year period, the
value of your 1988 investment - regardless of its size - has also increased
more than fivefold.
[FN]
<F1> 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>
Average Annual Compound Returns<F1>
for periods ended April 30, 1998
10 Years 5 Years 1 Year
+17.31% +20.52% +32.71%
[FN]
<F1>Based on the maximum sales charge of 5.75%. Sales charges are lower for
investments of $50,000 or more.
</FN>
(Chart 1)
<TABLE>
<CAPTION>
WASHINGTON MUTUAL INVESTORS FUND
MOUNTAIN CHART AND INDEX PLOT POINTS
Results of a $10,000 Investment in WMIF, the S&P500, and the CPI.
July 31, 1952 through April 30, 1998
Year Dividends Dividends
ended in Cash (2) WMIF Reinvested (1) WMIF TOTAL CPI
April 30 <F2> <F1><F2> <F3> <F1><F3> RETURN S&P500 <F4>
<S> <C> <C> <C> <C> <C> <C> <C>
07/31/52 $9,425 $9,425 $10,000 $10,000
1953 <F5> $169 9,161 $170 9,330 -6.7% 10,074 9,963
1954 434 10,773 450 11,494 23.2 12,269 10,037
1955 501 14,665 542 16,288 41.7 17,293 10,000
1956 580 17,851 654 20,565 26.3 22,942 10,075
1957 648 18,304 756 21,877 6.4 22,531 10,449
1958 680 16,928 825 21,055 -3.8 22,275 10,824
1959 700 24,125 885 31,071 47.6 30,604 10,861
1960 728 21,871 947 29,041 -6.5 29,869 11,049
1961 815 26,300 1,097 36,167 24.5 37,100 11,161
1962 823 26,592 1,145 37,654 4.1 38,167 11,311
1963 890 28,838 1,279 42,278 12.3 42,285 11,423
1964 923 31,149 1,368 47,109 11.4 49,681 11,573
1965 957 36,940 1,463 57,490 22.0 57,435 11,760
1966 1,049 38,487 1,648 61,603 7.2 60,532 12,097
1967 1,177 39,424 1,906 65,270 6.0 64,721 12,397
1968 1,332 42,481 2,231 72,692 11.4 69,378 12,884
1969 1,516 48,408 2,626 85,576 17.7 76,003 13,596
1970 1,604 39,049 2,874 71,603 -16.3 61,766 14,419
1971 1,710 48,769 3,193 93,387 30.4 81,691 15,019
1972 1,779 47,991 3,456 95,521 2.3 87,254 15,543
1973 1,818 43,290 3,671 89,522 -6.3 89,160 16,330
1974 1,857 40,682 3,907 87,956 -1.7 77,897 17,978
1975 2,185 42,855 4,829 98,315 11.8 78,957 19,813
1976 2,349 53,771 5,498 129,949 32.2 95,669 21,011
1977 2,509 55,449 6,171 140,348 8.0 96,552 22,472
1978 2,658 54,228 6,849 144,339 2.8 99,941 23,933
1979 2,870 58,180 7,785 163,075 13.0 110,731 26,442
1980 3,203 56,032 9,167 165,847 1.7 122,069 30,337
1981 4,785 72,410 14,603 230,423 38.9 160,304 33,371
1982 4,098 69,851 13,326 235,768 2.3 148,363 35,543
1983 4,496 101,855 15,516 362,292 53.7 221,061 36,929
1984 4,839 100,116 17,526 373,508 3.1 224,853 38,614
1985 5,464 115,473 20,783 452,497 21.1 264,592 40,037
1986 6,109 152,209 24,381 623,767 37.8 360,572 40,674
1987 6,780 180,960 28,229 771,947 23.8 455,929 42,210
1988 7,116 167,083 30,815 742,854 -3.8 426,805 43,858
1989 6,183 198,139 27,837 911,607 22.7 524,579 46,105
1990 8,920 202,429 41,689 971,049 6.5 579,489 48,277
1991 9,135 222,015 44,572 1,113,744 14.7 681,165 50,637
1992 8,318 244,606 42,318 1,272,370 14.2 776,938 52,247
1993 8,467 268,131 44,627 1,442,386 13.4 848,648 53,933
1995 9,790 301,054 55,058 1,730,691 17.0 1,049,053 56,891
1996 10,007 381,514 58,187 2,256,889 30.4 1,365,834 58,539
1997 10,505 455,550 62,763 2,763,026 22.4 1,708,803 60,000
1998 11,032 628,863 <F1><F2> 67,444 3,890,245 <F1><F3> 40.8 2,409,228 60,861 <F4>
173,091 733,784
<CAPTION>
Lifetime Total Return 13.9%<F1>
life years 45.7479
<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. The maximum
initial sales charge was 8.5% prior to July 1, 1988. Results shown do not
take into account income or capital gain taxes.
<F2> Capital Value includes capital gain distributions of $175,473, but
does not reflect income dividends of $173,091 taken in cash.
<F3> Total Value includes reinvested dividends of $733,784 and reinvested
capital gain distributions of $799,621.
<F4> The Consumer Price Index is computed from data supplied by the U.S.
Department of Labor, Bureau of Labor Statistics.
<F5> Since the Fund's inception on July 31, 1952.
</FN>
</TABLE>
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. Past performance is not predictive of future
performance.
Who owns Washington Mutual Investors Fund?
You and well over a million other investors, making Washington Mutual one
of the nation's most popular funds.
(Chart 2)
(Pie chart showing the following)
Washington Mutual Investors Fund as of April 30, 1998
Retirement plans 45%
Individual Retirement Accounts 36%
403(b), 401(k) and other plans 9%
Other 10%
Investments for college expenses 13%
(Uniform Gift/Transfer to Minors Act accounts)
Corporate/Institutional/Nonprofit 1%
Individual accounts 31%
(purpose not specified)
Statistics are based on account registrations using a single Taxpayer
Identification Number. Corporate retirement plans are often registered as a
single account; however, they may include many participants.
Your fellow shareholders include many individuals, small businesses, large
corporations and nonprofit institutions. Some are investing toward their
dreams and others are already enjoying them.
The ultimate investment goal for most people, of course, is to be secure in
retirement.
(photo)
Another common reason for choosing the Fund is to help pay for higher
education.
(photo)
Corporations, institutional investors and nonprofit foundations also find
Washington Mutual attractive.
(photo)
So it's not surprising that Individual Retirement Accounts - including
those serving as small business pension plans - make up more than a third
of the Fund's accounts. Also well represented are 403(b) plans (for
educators and employees of tax-exempt organizations), 401(k) plans (for
corporate employees) and other types of tax-deferred plans.
Altogether, retirement plan investments in Washington Mutual amount to more
than $17 billion. That includes significant investments by Fund managers
and other employees of Washington Mutual's investment adviser, who believe
in eating their own cooking, as well as by thousands of brokers and
financial planners.
Approximately 150,000 shareholders have set up Uniform Gifts to Minors Act
or Uniform Transfer to Minors Act accounts to help their children or
grandchildren meet college costs. Earnings on investments registered in
this way generally are taxable at the child's tax level, which can provide
a significant advantage.
The Fund's emphasis on income-producing "blue chip" stocks, its low
portfolio turnover rate and its rigorous investment standards - based on
guidelines originally established by the U.S. District Court for the
District of Columbia for selecting appropriate investments for trust funds
- - have a strong appeal to anyone with fiduciary responsibilities. More
than 6,500 organizations use the Fund for a host of reasons such as helping
meet operating expenses and financing scholarships.
(photo)
Washington Mutual's "typical" shareholder is 52 years old and has more than
$23,000 invested in the Fund.
(Photo)
The median annual household income of the Fund's shareholders is about
$50,000. The average shareholder has been in the Fund for about seven
years. However, there are dozens of investors who have been with us almost
since operations began in 1952 - some 46 years ago.
The typical Washington Mutual shareholder is still working and doesn't plan
to retire for another decade or so. But one in five shareholders has
already retired.
When the Fund pays a dividend or makes a capital gain distribution, the
vast majority of investors (more than 97%) reinvest the money to buy more
shares.
The Fund has shareholders in all 50 states (and in more than 100 countries,
from Antigua to Zimbabwe). More of them live in California, New York,
Texas and Illinois than anywhere else. Yet, residents of Nebraska,
Wyoming, Colorado, Wisconsin and Missouri are most likely to be
shareholders.
On the following pages we'll introduce you to some of your fellow
shareholders and take a look at how they use Washington Mutual. We hope you
enjoy meeting them.
Cole Hardware's 401(k) plan features Washington Mutual.
(photo)
Left to right:
Lailing Yu,
Rick Karp,
Rene Urbina,
Jana Kerwin,
Arturo Antoniotti,
Shel Klein,
Percy Wright,
Mike Okiishi,
Jeff Polonsky.
San Franciscans love Cole Hardware, a local chain that's so service
oriented it offers free home delivery with no minimum purchase required.
Cole employees love their jobs and their 401(k) plan, which includes
matching contributions by the company. Washington Mutual is one of the six
American Funds available in the plan.
Jeff Polonsky has invested in the Fund since the plan was launched in 1988:
"There's been a certain consistency, especially when the market has dipped,
and I like that the Fund's expenses are low."
Jana Kerwin appreciates the plan's flexibility. "I borrowed from my 401(k)
to buy my house," she explains. Lailing Yu says she'll borrow "to send my
children to college, then pay myself back - with interest."
Cole's president, Rick Karp, notes that under the terms of the plan, he's
the only employee who can't take a loan from his 401(k) money. "But I
could use it to retire early," he grins.
The Ellingsons are retirees enjoying the results of an investment made 20
years ago.
(photos)
Vern and June Ellingson of Yankton, South Dakota, appreciate the value of
thinking long-term: They've been married for 52 years.
The couple worked hard during most of those years. Vern helped keep
Yankton comfortable with his heating and air-conditioning business. June
sold real estate. Together they raised three children.
"After the children finished college, we had a little extra money, so we
put it in an IRA in Washington Mutual and let it sit," Vern says.
"A few years ago, we reached the age when you have to take money out every
year," June continues. "So now it's helping to pay for things like our
winter trips to Arizona - where furnace repair isn't such a big deal and we
can play golf almost every day."
Lake Chelan Hospital uses the Fund for health care scholarships.
(Photo)
Rural hospitals often have a tough time finding the money for continuing
education programs. But that's not the case at Lake Chelan Community
Hospital in the heart of Washington state's apple country.
The hospital's foundation received a surprise bequest in 1995, establishing
the Harold and Edna Bragg Scholarship Fund for students in the health care
field. More than 40 area residents have already received grants. "Edna
Bragg did a great thing," says Fred Rarden, the foundation's director.
"She touched generations yet to be born."
(photo)
Left to right:
Pat Reed, (also shown studying, above) Kendell Brinkmann, Kay Sikes - three
hospital staffers who have upgraded their skills using the foundation's
scholarship grants.
Washington Mutual seems an especially appropriate investment for a health
care scholarship fund because it avoids alcohol and tobacco companies.
"That's important to me," notes radiologic technologist Kay Sikes, who has
used the scholarship fund to pay for training to stay on top of ultrasound
techniques.
George "Ernie" Washington invests in his IRA.
(photo)
The Chico, California attorney, who often rides his bike to the office,
says that Washington Mutual Investors Fund's familiar name wasn't a factor
in his decision to open an Individual Retirement Account.
"What happened was that the Fund's results really stood out among some
investments made for my kids," he explains. "So I thought it might be a
good place for my IRA nest egg." Since he opened his account a decade ago,
the value of an investment in the Fund has grown more than 400%. Of
course, the last decade has produced unusually high market results and it
is unrealistic to expect these kinds of results will continue in the
future.
Ernie knows a lot about what makes things grow: He comes from a family of
farmers and owns a 100-acre almond orchard.
The McDaniels plan to send their three children to college.
(photo)
Warren McDaniel, 9, thinks he might like to be a pilot. Whitney, 12, is
interested in literature. But on any given day they - and their little
sister Allison, 8 - are just as likely to dream of becoming professional
basketball players by perfecting their hoop skills in the driveway of the
family's Kensington, Maryland, home.
Their parents, Mary Beth and Doug, want to give them a chance to realize
their dreams, whatever they are - even if basketball scholarships don't
work out. "College is definitely going to be part of their program," Mary
Beth says.
Doug's mother planted the seeds by opening Uniform Gifts to Minors Act
accounts in Washington Mutual when each child was an infant. Mary Beth and
Doug have been making regular additions ever since. "Our family goes back
four generations with the Fund," Doug says. "My grandmother had an
account, my mother has one, and now our children each have one."
(Photo)
Left to right:
Warren, Whitney, Allison, Mary Beth and Doug with the family's Labrador
retriever, Rascal.
St. Barnabas Charitable Foundation uses the Fund to fill the gaps where
Medicaid stops.
(photos)
St. Barnabas patients shown include Vern Kustes (parallel bars, above) and
Granville Waller and Ruth Milbert (in greenhouse, right).
What happens when a disabled person's Medicaid benefits run out? For
hundreds of people in the Pittsburgh area, St. Barnabas Charitable
Foundation picks up where Medicaid leaves off.
Last year the Gibsonia, Pennsylvania organization, which has invested in
Washington Mutual since 1992, provided more than $4 million in free care
for patients of all ages. It helped with everything from physical therapy
to basic living expenses, and helped underwrite a wide variety of
activities. Perhaps the Foundation's most expansive project is "Presents
for Patients," which arranges sponsors to brighten the holidays for lonely
patients in six states. Over its 14-year history, the program has been
responsible for more than 150,000 gifts, ranging from pizzas to plane
rides.
The Foundation also provides capital for two nursing homes, a retirement
community and an outpatient clinic. This year it will help St. Barnabas
buy an old elementary school building next door and turn it into a hospice.
<TABLE>
<CAPTION>
Investment Portfolio Washington Mutual Investors Fund
April 30, 1998
Five Largest Ten Largest
Investment Categories Individual Holdings
Percent of Percent of Percent of
Net Assets Net Assets Net Assets
<S> <C> <S> <C> <S> <C>
Finance 25.06% AT&T 2.79% Ameritech 2.25%
Services 19.14 Texaco 2.75 DuPont 1.99
Energy 18.47 First Union 2.62 Chase Manhattan 1.93
Consumer Goods 15.06 Atlantic Richfield 2.44 U S WEST Communications Group 1.92
Capital Equipment 9.19 Warner-Lambert 2.33 J.C. Penney 1.72
</TABLE>
Energy
Equity Securities
(Common and Preferred Stocks) Shares Market Percent of
Value (000) Net Assets
Energy Sources (10.15%)
Amoco Corp. 16,910,000 $ 748,267 1.63%
Atlantic Richfield Co. 14,312,500 1,116,375 2.44
Chevron Corp. 5,600,000 463,050 1.01
Exxon Corp. 2,200,000 160,463 .35
Kerr-McGee Corp. 2,350,000 155,100 .34
Mobil Corp. 6,525,000 515,475 1.13
Texaco Inc. 20,450,000 1,257,675 2.75
Unocal Corp. 5,600,000 229,250 .50
4,645,655 10.15
Utilities: Electric & Gas (8.32%)
Ameren Corp. 6,800,000 269,450 .59
American Electric Power Co., Inc. 3,350,000 159,962 .35
Baltimore Gas and Electric Co. 4,216,600 132,823 .29
Carolina Power & Light Co. 4,000,000 172,250 .38
Central and South West Corp. 6,225,800 162,260 .35
CINergy Corp. 700,000 24,413 .05
Conectiv, Inc.
(formerly Atlantic Energy, Inc.) 1,909,800 39,986 .09
Conectiv, Inc., Class A 325,000 10,664 .02
Consolidated Edison, Inc. 6,000,000 271,500 .59
Consolidated Natural Gas Co. 2,100,000 120,750 .26
Dominion Resources, Inc. 595,000 23,540 .05
DTE Energy Co. 3,865,000 151,460 .33
Duke Energy Corp. 8,623,552 499,088 1.09
Edison International 3,985,000 118,803 .26
Enova Corp. 2,000,000 53,500 .12
Entergy Corp. 2,400,000 59,700 .13
Florida Progress Corp. 4,485,800 182,236 .40
FPL Group, Inc. 1,600,000 99,300 .22
GPU, Inc. 2,400,000 95,100 .21
Houston Industries Inc. 2,800,000 $ 81,375 .18%
KeySpan Energy Corp. 900,000 30,713 .07
New Century Energies, Inc. 2,500,000 118,750 .26
OGE Energy Corp. 400,000 21,975 .05
PECO Energy Co. 2,500,000 59,531 .13
PP & L Resources, Inc. 7,700,000 177,581 .39
Public Service Enterprise Group Inc. 3,420,000 114,784 .25
Puget Sound Energy, Inc. 3,800,000 99,987 .22
Southern Co. 16,275,000 431,287 .94
Wisconsin Energy Corp. 700,000 21,350 .05
3,804,118 8.32
Total Energy 8,449,773 18.47
Materials
Chemicals (3.88%)
E.I. du Pont de Nemours and Co. 12,488,000 909,283 1.99
Internationall Flavors &
Fragrances Inc. 860,700 42,120 .09
Mallinckrodt Inc. 1,006,800 32,469 .07
Monsanto Co. 3,850,000 203,569 .44
PPG Industries, Inc. 6,089,500 430,452 .94
Sherwin-Williams Co. 3,000,000 106,875 .23
Witco Corp. 1,400,000 55,475 .12
1,780,243 3.88
Forest Products & Paper (2.81%)
International Paper Co. 12,650,000 660,172 1.44
Louisiana-Pacific Corp. 5,425,000 118,672 .26
Westvaco Corp. 5,501,350 166,760 .37
Weyerhaeuser Co. 4,225,000 243,465 .53
Willamette Industries, Inc. 2,475,000 96,061 .21
1,285,130 2.81
Metals: Nonferrous (.40%)
Phelps Dodge Corp. 2,720,000 182,580 .40
Total Materials 3,247,953 7.09
Capital Equipment
Aerospace & Military Technology (1.95%)
Boeing Co. 3,825,000 191,489 .42
Raytheon Co., Class B 6,150,000 348,628 .76
United Technologies Corp. 3,585,400 352,938 .77
893,055 1.95
Data Processing & Reproduction (1.88%)
Hewlett-Packard Co. 4,675,000 352,086 .77%
Xerox Corp. 4,492,000 509,842 1.11
861,928 1.88
Electrical & Electronics (.47%)
Emerson Electric Co. 2,130,300 135,540 .30
General Electric Co. 900,000 76,613 .17
212,153 .47
Electronic Components (.93%)
AMP Inc. 3,650,000 143,491 .31
Motorola, Inc. 2,000,000 111,250 .24
Texas Instruments Inc. 1,800,000 115,312 .25
Thomas & Betts Corp. 1,020,000 59,542 .13
429,595 .93
Energy Equipment (.20%)
Dresser Industries, Inc. 1,700,000 89,887 .20
Industrial Components (3.17%)
Dana Corp. 3,222,800 190,548 .42
Eaton Corp. 2,300,000 212,463 .46
Genuine Parts Co. 8,775,000 315,900 .69
Goodyear Tire & Rubber Co. 2,200,000 154,000 .34
Johnson Controls, Inc. 4,197,600 249,232 .54
Rockwell International Corp. 1,200,000 67,125 .15
TRW Inc. 4,950,000 261,422 .57
1,450,690 3.17
Machinery & Engineering (.59%)
Caterpillar Inc. 3,182,200 181,187 .40
Ingersoll-Rand Co. 1,012,500 46,638 .10
Parker Hannifin Corp. 950,000 42,394 .09
270,219 .59
Total Capital Equipment 4,207,527 9.19
Consumer Goods
Appliances & Household Durables (.27%)
Rubbermaid Inc. 3,495,200 100,050 .22%
Whirlpool Corp. 300,000 21,600 .05
121,650 .27
Automobiles (1.53%)
Chrysler Corp. 17,450,000 701,272 1.53
Beverages (.37%)
PepsiCo, Inc. 4,300,000 170,656 .37
Food & Household Products (2.48%)
Bestfoods 4,440,400 243,667 .53
Colgate-Palmolive Co. 366,300 32,853 .07
General Mills, Inc. 4,900,000 331,056 .72
Kellogg Co. 4,200,000 173,250 .38
Procter & Gamble Co. 1,300,000 106,844 .24
Sara Lee Corp. 4,150,000 247,184 .54
1,134,854 2.48
Health & Personal Care (9.34%)
American Home Products Corp. 1,000,000 93,125 .20
Avon Products, Inc. 2,286,800 187,946 .41
Baxter International Inc. 4,400,000 243,925 .53
Bristol-Myers Squibb Co. 3,950,000 418,206 .91
Johnson & Johnson 800,000 57,100 .12
Kimberly-Clark Corp. 1,400,000 71,050 .16
Eli Lilly and Co. 9,968,800 693,455 1.52
McKesson Corp. 750,000 53,016 .12
Merck & Co., Inc. 1,500,000 180,750 .40
Pfizer Inc 4,596,200 523,105 1.14
Pharmacia & Upjohn, Inc. 6,675,000 280,767 .61
Schering-Plough Corp. 5,100,000 408,638 .89
Warner-Lambert Co. 5,634,200 1,065,920 2.33
4,277,003 9.34
Recreation & Other Consumer Products (.76%)
Eastman Kodak Co. 4,806,500 346,969 .76
Textiles & Apparel (.31%)
NIKE, Inc., Class B 1,220,425 $ 58,275 .13%
VF Corp. 1,618,800 84,178 .18
142,453 .31
Total Consumer Goods 6,894,857 15.06
Services
Broadcasting & Publishing (.43%)
Dow Jones & Co., Inc. 2,407,600 117,220 .25
Gannett Co., Inc. 1,200,000 81,525 .18
198,745 .43
Business & Public Services (2.59%)
Browning-Ferris Industries, Inc. 9,608,700 327,897 .72
Cognizant Corp. 169,200 8,703 .02
Deluxe Corp. 2,500,000 83,750 .18
Dun & Bradstreet Corp. 1,600,000 56,800 .12
Electronic Data Systems Corp. 4,614,700 198,432 .43
IKON Office Solutions, Inc. 5,830,000 141,013 .31
IKON Office Solutions, Inc.,
convertible .05
preferred, Series BBM 380,000 22,871
Pitney Bowes Inc. 1,800,000 86,400 .19
Waste Management, Inc. 7,725,000 258,788 .57
1,184,654 2.59
Leisure & Tourism (.60%)
McDonald's Corp. 4,425,000 273,797 .60
Merchandising (5.50%)
Albertson's, Inc. 11,653,200 582,660 1.27
American Stores Co. 6,475,700 155,417 .34
May Department Stores Co. 4,200,000 259,087 .57
J.C. Penney Co., Inc. 11,078,500 787,266 1.72
Rite Aid Corp. 3,000,000 96,375 .21
Sears, Roebuck and Co. 1,600,000 94,900 .21
Walgreen Co. 1,000,000 34,500 .08
Wal-Mart Stores, Inc. 10,000,000 505,625 1.10
2,515,830 5.50
Telecommunications (8.77%)
Ameritech Corp. 24,200,000 $ 1,030,012 2.25%
AT&T Corp. 21,280,700 1,278,172 2.79
Bell Atlantic Corp. 1,337,900 125,177 .28
SBC Communications Inc. 6,614,350 274,082 .60
Sprint Corp. 6,250,000 426,953 .93
U S WEST Communications Group 16,670,000 879,343 1.92
4,013,739 8.77
Transportation: Rail (1.25%)
CSX Corp. 750,000 39,375 .09
Norfolk Southern Corp. 7,259,500 242,740 .53
Union Pacific Corp. 5,295,200 289,912 .63
572,027 1.25
Total Services 8,758,792 19.14
Finance
Banking (14.52%)
Banc One Corp. 3,679,500 216,401 .47
Bank of New York Co., Inc. 10,450,000 617,203 1.35
BankAmerica Corp. 4,000,000 340,000 .74
Bankers Trust New York Corp. 1,940,000 250,502 .55
Chase Manhattan Corp. 6,380,000 884,029 1.93
Comerica Inc. 375,000 25,102 .06
First Chicago NBD Corp. 2,300,000 213,612 .47
First Union Corp. 19,859,146 1,198,996 2.62
Fleet Financial Group, Inc. 3,740,000 323,042 .71
KeyCorp 8,350,000 331,391 .72
J.P. Morgan & Co. Inc. 4,375,000 574,219 1.25
NationsBank Corp. 7,471,875 565,994 1.24
Norwest Corp. 6,500,000 257,969 .56
SunTrust Banks, Inc. 2,000,000 162,875 .36
Wachovia Corp. 2,050,000 174,122 .38
Wells Fargo & Co. 1,383,900 509,967 1.11
6,645,424 14.52
Financial Services (3.74%)
American Express Co. 2,650,000 270,300 .59
Beneficial Corp. 2,324,100 303,004 .66
Fannie Mae 6,650,000 398,169 .87
Household International, Inc. 5,273,000 693,070 1.52
SLM Holding Corp. 1,050,000 44,822 .10
1,709,365 3.74
Insurance (6.80%)
Aetna Inc. 3,325,000 $ 268,702 .59%
Allstate Corp. 4,370,000 420,612 .92
American General Corp. 6,050,000 403,081 .88
Aon Corp. 4,200,000 270,900 .59
CIGNA Corp. 1,200,000 248,325 .54
General Re Corp. 1,955,000 437,065 .95
Jefferson-Pilot Corp. 2,660,700 156,150 .34
Lincoln National Corp. 3,225,000 286,420 .63
Marsh & McLennan Companies, Inc. 2,200,000 200,475 .44
St. Paul Companies, Inc. 4,943,090 418,927 .92
3,110,657 6.80
Total Finance 11,465,446 25.06
Multi-Industry
Multi-Industry (.59%)
AlliedSignal Inc. 4,600,000 201,538 .44
Minnesota Mining and
Manufacturing Co. 500,000 47,187 .10
Whitman Corp. 1,050,000 20,541 .05
Total Multi-Industry 269,266 .59
Miscellaneous
Equity securities in initial period
of acquisition 21,357,500 891,130 1.95
TOTAL INVESTMENT SECURITIES
(cost: $26,847,084,000) 44,184,744 96.55
Excess of United States Treasury
bills, cash, and receivables
over payables 1,578,790 3.45
NET ASSETS $45,763,534 100.00%
See Notes to Financial Statements
Financial Statements
Statement of Assets and Liabilities
April 30, 1998 (dollars in thousands)
Assets:
Investment securities at market
(cost: $26,847,084) $44,184,744
United States Treasury bills
(cost: $1,505,764) 1,506,176
Cash 6,286
Receivables for -
Sales of investments $ 53,926
Sales of Fund's shares 117,744
Dividends 71,753 243,423
45,940,629
Liabilities:
Payables for -
Purchases of investments 118,292
Repurchases of Fund's shares 28,344
Management services 10,974
Accrued expenses 19,485 177,095
Net Assets at April 30, 1998 -
Equivalent to $33.92 per share on
1,349,017,791 shares of $1 par value
capital stock outstanding (authorized
capital stock - 2,000,000,000 shares) $45,763,534
Statement of Operations
for the year ended April 30, 1998 (dollars in thousands)
Investment Income:
Income:
Dividends $ 906,675
Interest 81,548 $ 988,223
Expenses:
Investment management fee 73,646
Business management fee 36,895
Distribution expenses 86,819
Transfer agent fee 21,078
Reports to shareholders 1,643
Registration statement and prospectus 2,359
Postage, stationery and supplies 4,680
Directors' and Advisory Board fees 474
Auditing and legal fees 131
Custodian fee 370
Other expenses 284 228,379
Net investment income 759,844
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 2,816,947
Net unrealized appreciation:
Beginning of year 8,683,514
End of year 17,338,072
Net change in unrealized
appreciation 8,654,558
Net realized gain and change in
unrealized appreciation 11,471,505
Net Increase in Net Assets
Resulting from Operations $12,231,349
Statement of Changes in Net Assets
Year ended April 30
(dollars in thousands) 1998 1997
Operations:
Net investment income $ 759,844 $ 617,890
Net realized gain on investments 2,816,947 1,465,728
Net change in unrealized
appreciation on investments 8,654,558 2,795,800
Net Increase in Net Assets
Resulting from Operations 12,231,349 4,879,418
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (736,632) (607,336)
Distributions from net realized gain
on investments (1,958,463) (1,174,688)
Total Dividends and Distributions (2,695,095) (1,782,024)
Capital Share Transactions:
Proceeds from shares sold:
298,975,826 and 215,746,819
shares, respectively 9,237,792 5,311,956
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
84,081,074 and 67,871,052 shares,
respectively 2,539,311 1,671,650
Cost of shares repurchased:
120,245,204 and 105,990,667
shares, respectively (3,714,819) (2,605,406)
Net Increase in Net Assets Resulting
from Capital Share Transactions 8,062,284 4,378,200
Total Increase in Net Assets 17,598,538 7,475,594
Net Assets:
Beginning of year 28,164,996 20,689,402
End of year (including undistributed
net investment income: $105,710 and
$82,498, respectively) $45,763,534 $28,164,996
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 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:
Equity 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 April 30, 1998, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $17,338,072,000, of which
$17,402,183,000 related to appreciated securities and $64,111,000 related
to depreciated securities. There was no difference between book and tax
realized gains on securities transactions for the year ended April 30,
1998. The cost of portfolio securities for book and federal income tax
purposes was $28,352,848,000 at April 30, 1998.
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
$36,895,000 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 $1,052,000 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 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 $73,646,000 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 year ended April 30,
1998, distribution expenses under the Plan were $86,819,000, including
accrued and unpaid expenses of $14,662,000.
AFD has informed the Fund that it has received $38,821,000 (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 $21,078,000.
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 April 30, 1998, aggregate amounts deferred and earnings
thereon were $423,000.
4. As of April 30, 1998, accumulated undistributed net realized gain on
investments was $1,805,607,000 and additional paid-in capital was
$25,165,127,000.
The Fund made purchases and sales of investment securities, excluding
short-term securities, of $11,760,171,000 and $6,185,607,000, respectively,
during the year ended April 30, 1998.
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 $370,000 included $56,000 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
Year ended April 30
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $25.93 $22.77 $18.87 $17.11 $17.59
Income from Investment Operations:
Net investment income .62 .62 .63 .63 .59
Net realized and unrealized gain
(loss) on investments 9.65 4.36 4.98 2.16 (.12)
Total income from investment
operations 10.27 4.98 5.61 2.79 .47
Less Distributions:
Dividends from net investment income (.62) (.62) (.62) (.62) (.56)
Distributions from net realized gains (1.66) (1.20) (1.09) (.41) (.39)
Total distributions (2.28) (1.82) (1.71) (1.03) (.95)
Net Asset Value, End of Year $33.92 $25.93 $22.77 $18.87 $17.11
Total Return<F1> 40.80% 22.43% 30.40% 17.01% 2.55%
Ratios/Supplemental Data:
Net assets, end of year (in millions) $45,764 $28,165 $20,689 $14,426 $12,405
Ratio of expenses to average
net assets .62% .64% .66% .69% .69%
Ratio of net income to average
net assets 2.08% 2.56% 2.98% 3.57% 3.29%
Average commissions paid<F2> 4.94(cents) 5.29(cents) 6.24(cents) 6.87(cents) 6.85(cents)
Portfolio turnover rate 17.61% 20.41% 23.41% 25.45% 23.86%
<FN>
<F1> Excludes maximum sales charge of 5.75%.
<F2> 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 (without commissions) are excluded.
</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, 1998, 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, 1998 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.
(Signature)
Los Angeles, California
May 29, 1998
Tax Information For The Year Ended April 30, 1998 (Unaudited)
We are required to advise you within 60 days of the Fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by
the Fund were earned from the following sources:
Dividends and Distributions Per Share
From Net From Net
From Net Realized Realized
To Shareholders Investment Short-Term Long-Term
of Record Payment Date Income Gains Gains
June 20, 1997 June 23, 1997 $0.145 - -
September 19, 1997 September 22, 1997 0.145 - -
December 18, 1997 December 19, 1997 0.185 - $1.655<F1>
March 20, 1998 March 23, 1998 0.145 - -
<F1> Includes $0.875 long-term capital gains taxed at a maximum rate of 28%.
Corporate shareholders may exclude up to 100% of qualifying dividends
received during the year.
Certain states may exempt from income taxation that portion of the
dividends paid from net investment income that was derived from direct U.S.
Treasury obligations. For purposes of computing this exclusion, 9% of the
dividends paid by the Fund from net investment income were derived from
interest on direct U.S. Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their
annual information reporting.
Shareholders should consult their tax advisers.
(photo)
Left to right:
Mr. Callahan, Mr. Stockton, Mr. Yeonas, Mrs. Erhard, Mr. Beck, Mrs. White,
Mr. Tardio, Mr. Markham, Mr. Lister, Mr. Richard, Mr. Bowsher, Mr.
Hartwell, Mr. Ansary, Mr. Steuart, Mr. Holleman, Mr. Lemon, Mr. Frank, Mrs.
Sisco, Ms. Bush, Mr. Singleton, Mr. Smith, Mr. Kitzmiller, Mr. Miller, Mr.
Brinkman.
Offices of the Fund and of the Business Manager
Washington Management Corporation
1101 Vermont Avenue, NW
Washington, DC 20005-3585
202/842-5665
Custodian
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, NY 10081-0001
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
Counsel
Thompson, O'Donnell,
Markham, Norton & Hannon
805 Fifteenth Street, NW
Washington, DC 20005-2216
Transfer Agent
American Funds Service (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
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
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.
Fred J. Brinkman
Retired Senior Partner,
Arthur Andersen, llp
Daniel J. Callahan III
Vice Chairman and Treasurer,
The Morris and Gwendolyn Cafritz Foundation
James C. Miller III
Counselor, Citizens for a Sound Economy
T. Eugene Smith
President, T. Eugene Smith Inc.
Leonard P. Steuart, II
Vice President, Steuart Investment Company
Margita E. White
President, Association for Maximum
Service Television Inc.
Advisory Board
Charles A. Bowsher
Retired Comptroller General of the
United States
Mary K. Bush
President, Bush & Company
Vernon W. Holleman, Jr.
President, Vernon W. Holleman, Jr., Co.
Katherine D. Ortega
Former Treasurer of the United States
J. Knox Singleton
President and Chief Executive Officer, INOVA Health Systems
William B. Snyder
Chairman, President and Chief
Executive Officer, Southern Heritage Holdings, Inc. and Merastar
Corporation
Robert F. Tardio
Independent Consultant
Directors Emeritus
Bernard J. Nees
Chairman Emeritus of the Fund
Charles T. Akre
Of Counsel, Miller & Chevalier, Chartered
Dr. Nathan A. Baily
Management, Marketing and Education Consultant
John A. Beck
Of Counsel, Reed Smith Shaw & McClay
Jean Head Sisco
Partner, Sisco Associates
Stephen G. Yeonas
Chairman and Chief Executive Officer,
Stephen G. Yeonas 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, Vice President and Treasurer, Washington Management Corporation
Lois A. Erhard
Vice President of the Fund
Vice President, Washington Management Corporation
Michael W. Stockton
Assistant Vice President, Assistant Secretary and Assistant Treasurer of
the Fund
Assistant Vice President, Assistant Secretary and Assistant Treasurer,
Washington Management Corporation
J. Lanier Frank
Assistant Vice President of the Fund
Assistant Vice President, Washington Management Corporation
In the past, Washington Mutual Investors Fund has reported to you
quarterly. With that information now available from your financial adviser
or the American Funds Web site at www.americanfunds.com, the cost of
producing quarterly reports no longer appears justified. We will continue
to provide annual and semi-annual reports.
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, 1998, this report must
be accompanied by an American Funds Group Statistical Update for the most
recently completed calendar quarter.
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-011-0698 (logo) Printed on recycled paper
Washington Mutual Investors Fund, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
202/842-5665
Washington Mutual Investors Fund, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
202/842-5665
(Logo)
Washington Mutual Investors Fund
