WASHINGTON MUTUAL INVESTORS FUND INC
485APOS, 1999-04-08
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=====================================================
                                SEC File Nos. 2-11051
                                              811-604
=====================================================
        SECURITIES AND EXCHANGE COMMISSION
              WASHINGTON, D.C. 20549
                          
                   FORM N-1A
             REGISTRATION STATEMENT
                     UNDER
            THE SECURITIES ACT OF 1933
        POST-EFFECTIVE AMENDMENT NO. 100    
            REGISTRATION STATEMENT
                     UNDER
        THE INVESTMENT COMPANY ACT OF 1940
                    AMENDMENT NO. 28    
                          
     WASHINGTON MUTUAL INVESTORS FUND, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
           1101 VERMONT AVENUE, N.W.
            WASHINGTON, D.C. 20005
     (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
                          
  REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
                (202) 842-5665
                          
              STEPHEN HARTWELL
      WASHINGTON MANAGEMENT CORPORATION
          1101 VERMONT AVENUE, N.W.
           WASHINGTON, D.C. 20005
   (NAME AND ADDRESS OF AGENT FOR SERVICE)
                          
                COPIES TO:
          JOHN JUDE O'DONNELL, ESQ.
 THOMPSON, O'DONNELL, MARKHAM, NORTON & HANNON
         805 FIFTEENTH STREET, N.W.
           WASHINGTON, D.C. 20005
       (COUNSEL FOR THE REGISTRANT)
                             
THE REGISTRANT WILL FILE ITS 24F-2 NOTICE FOR FISCAL 1998 ON OR ABOUT JULY 25,
1999.
        APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
/X/ IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE ON JUNE 22, 1999,
PURSUANT TO PARAGRAPH (A) OF RULE 485.    
                ===============================================
 
   
<PAGE>
                         THE AMERICAN FUNDS GROUP LOGO
 
- --------------------------------------------------------------------------------
                               WASHINGTON MUTUAL
                              INVESTORS FUND -SM-
                                   PROSPECTUS
 
                                 JUNE 22, 1999
 
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE
SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
WASHINGTON MUTUAL INVESTORS FUND, INC.
 
1101 Vermont Avenue, N.W.
Washington, DC 20005
 
TICKER SYMBOL: AWSHX  NEWSPAPER ABBREV.: Wsh  FUND NO.: 01
 
- -------------------------------------------------------------------
 
TABLE OF CONTENTS
 
<TABLE>
<S>                                                             <C>
Risk/Return Summary                                                     2
 ........................................................................
Fees and Expenses of the Fund                                           5
 ........................................................................
Investment Objective, Strategies and Risks                              6
 ........................................................................
Year 2000                                                               9
 ........................................................................
Management and Organization                                            10
 ........................................................................
Shareholder Information                                                12
 ........................................................................
Purchase and Exchange of Shares                                        13
 ........................................................................
Distribution Arrangements                                              17
 ........................................................................
Financial Highlights                                                   18
</TABLE>
 
- -------------------------------------------------------------------
 
01-010-0699/MC              WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      1
<PAGE>
- --------------------------------------------------------------------------------
 
RISK/RETURN SUMMARY
 
The fund seeks to produce current income and to provide an opportunity for
growth of principal consistent with sound common stock investing. The Fund
invests primarily in common stocks of larger, more established companies that
are listed on the New York Stock Exchange and have a record of increasing
earnings and dividends.
 
The fund is designed to provide fiduciaries, organizations, institutions and
individuals with a convenient and prudent medium of investment in high quality
common stocks and securities convertible into common stocks. It is designed to
serve those individuals who are charged with the responsibility of investing
retirement plan trusts, other fiduciary type reserves, or family funds, but who
are reluctant to undertake the selection and supervision of individual stocks.
 
The fund strives to maintain a fully invested, diversified portfolio, primarily
of high-quality stocks and securities convertible into common stocks.
Investments are selected from the fund's "Eligible List" of investments, which
conform to stringent standards adopted by the fund's board of directors and are
considered appropriate for a prudent investor seeking opportunities for income
and growth of principal consistent with sound common stock investing.
 
An investment in the fund is subject to risks, including the possibility that
the fund may decline in value in response to economic, social or political
events in the U.S. or abroad. In addition, the prices of equity securities are
also affected by events specifically involving the companies whose securities
are owned by the fund. Accordingly, you may lose money by investing in the fund.
The likelihood of loss is greater if you invest for a shorter period of time.
 
Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.
 
2     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
INVESTMENT RESULTS
 
The following information illustrates how the fund's results fluctuate. Past
results are not an indication of future results.
 
  Here are the fund's results calculated without a sales charge on a CALENDAR
  YEAR basis. (If a sales charge were included, results would be lower.)
 
  EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
 
<TABLE>
<S>        <C>
89            28.96%
90            -3.86%
91            23.49%
92             9.10%
93            13.05%
94             0.49%
95            41.22%
96            20.18%
97            33.29%
98            19.37%
</TABLE>
 
  The fund's year-to-date return for the three months ending March 31, 1999
  was X.XX%.
 
The fund's highest/lowest QUARTERLY results during this time period were:
 
X  HIGHEST  14.44% (quarter ended June 30, 1997)
 
X  LOWEST   -13.13% (quarter ended September 30, 1990)
 
                            WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      3
<PAGE>
For periods ended March 31, 1999:
 
<TABLE>
<CAPTION>
                                           THE FUND WITH
                                              MAXIMUM
AVERAGE ANNUAL                              SALES CHARGE        S&P       LIPPER
TOTAL RETURN                                DEDUCTED(1)        500(3)    INDEX(4)
<S>                                      <C>                  <C>        <C>
- ---------------------------------------------------------------------------------
One Year                                      xx.xx%          xx.xx%     xx.xx%
 ................................................................................
Five Years                                    xx.xx%          xx.xx%     xx.xx%
 ................................................................................
Ten Years                                     xx.xx%          xx.xx%     xx.xx%
 ................................................................................
Lifetime(5)                                   xx.xx%          xx.xx%        n/a
</TABLE>
 
Yield(2): x.xx%
 
(For current yield information call American
FundsLine-Registered Trademark- --at 1-800-325-3590)
(1) THESE RESULTS REFLECT AVERAGE ANNUAL COMPOUNDED RATES OR RETURN.
 
(2) THESE FUND RESULTS WERE CALCULATED ACCORDING TO A FORMULA WHICH REQUIRES
    THAT THE MAXIMUM SALES CHARGE OF 5.75% BE DEDUCTED AND INCLUDE THE
    REINVESTMENT OF DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS. RESULTS WOULD BE
    HIGHER IF THEY WERE CALCULATED AT NET ASSET VALUE.
 
(3) THE STANDARD & POOR'S 500 COMPOSITE INDEX REPRESENTS PRIMARILY U.S. STOCKS.
    THIS INDEX IS UNMANAGED AND DOES NOT REFLECT SALES CHARGES, COMMISSIONS OR
    EXPENSES.
 
(4) THE LIPPER GROWTH AND INCOME FUNDS INDEX IS AN EQUALLY WEIGHTED PERFORMANCE
    INDEX THAT REPRESENTS FUNDS THAT COMBINE A GROWTH-OF-EARNINGS ORIENTATION
    AND AN INCOME REQUIREMENT FOR LEVEL AND/OR RISING DIVIDENDS. THE RESULTS OF
    THE UNDERLYING FUNDS IN THE INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND
    CAPITAL GAIN DISTRIBUTIONS BUT DO NOT REFLECT SALES CHARGES, COMMISSIONS OR
    EXPENSES.
 
(5) THE FUND BEGAN ITS INVESTMENT OPERATIONS ON JULY 31, 1952.
 
4   WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
 
FEES AND EXPENSES OF THE FUND
 
THE FOLLOWING DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND
HOLD SHARES OF THE FUND.
 
SHAREHOLDERS FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
 
<TABLE>
<S>                                      <C>
- -----------------------------------------------
Maximum sales charge imposed on
purchases
(AS A PERCENTAGE OF OFFERING PRICE)       5.75%(1)
 ..............................................
Maximum sales charge imposed on
reinvested dividends                         0%
 ..............................................
Maximum deferred sales charge                0%(2)
 ..............................................
Redemption or exchange fees                  0%
</TABLE>
 
(1) SALES CHARGES ARE REDUCED OR ELIMINATED FOR LARGER PURCHASES.
 
(2) A CONTINGENT DEFERRED SALES CHARGE OF 1% APPLIES ON CERTAIN REDEMPTIONS MADE
    WITHIN 12 MONTHS FOLLOWING ANY PURCHASES YOU MADE WITHOUT A SALES CHARGE.
 
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
 
<TABLE>
<S>                                    <C>
- ---------------------------------------------
Management Fees                         0.xx%
 ............................................
Service (12b-1) Fees                    0.xx%*
 ............................................
Other Expenses                          0.xx%
 ............................................
Total Annual Fund Operating Expenses    0.xx%
</TABLE>
 
 *12b-1 EXPENSES MAY NOT EXCEED 0.25% OF THE FUND'S AVERAGE NET ASSETS ANNUALLY.
 
EXAMPLE
 
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
 
The Example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
 
<TABLE>
<S>                                      <C>
- -----------------------------------------------
One Year                                 $  xxx
 ..............................................
Three Years                              $  xxx
 ..............................................
Five Years                               $  xxx
 ..............................................
Ten Years                                $x,xxx
</TABLE>
 
                            WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      5
<PAGE>
- --------------------------------------------------------------------------------
 
INVESTMENT OBJECTIVE, STRATEGIES AND RISKS
 
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 fund strives to accomplish this objective through fundamental
research, careful selection, and broad diversification. In the selection of
securities for investment, current and potential yield as well as the potential
for long-term capital appreciation are considered. The fund strives in its
overall portfolio to achieve an above average yield and a below average price-
to-earnings ratio in relation to the Standard & Poor's 500 Composite Index (a
broad, unmanaged index). The fund's portfolio is limited to securities included
on its "Eligible List", which is derived from the fund's "Investment Standards"
based on criteria that was applied by the United States District Court for the
District of Columbia. The Investment Adviser monitors the Eligible List and
makes recommendations to the board of directors of changes necessary for
continued compliance with the fund's Investment Standards.
 
The prices of equity securities may decline in response to certain events,
including those directly involving the companies whose securities are owned in
the fund, adverse conditions affecting the general economy or overall market
declines.
 
The fund's policy is to maintain at all times for its shareholders a fully
invested and widely diversified portfolio of securities; however, the fund may
hold to a limited extent, short-term U.S. government securities, cash and cash
equivalents.
 
The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
securities. The basic philosophy of Capital Research and Management Company is
to seek undervalued securities that represent good long-term investment
opportunities. Securities may be sold when they are judged to no longer
represent good long-term value.
 
OTHER IMPORTANT INVESTMENT PRACTICES
 
In addition to the principal investment strategies described above, the fund has
other investment practices that are described in the Statement of Additional
Information.
 
6     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
ADDITIONAL INVESTMENT RESULTS
 
(For periods ended March 31, 1999)
 
<TABLE>
<CAPTION>
AVERAGE ANNUAL                           THE FUND WITH NO     LIPPER
TOTAL RETURN(1)                          SALES CHARGE(2)     INDEX(3)
<S>                                      <C>                <C>
- -----------------------------------------------------------------------
One Year                                      xx.xx%         xx.xx%
 
 ......................................................................
Five Years                                    xx.xx%         xx.xx%
 
 ......................................................................
Ten Years                                     xx.xx%         xx.xx%
 
 ......................................................................
15 Years                                      xx.xx%         xx.xx%
 
 ......................................................................
20 Years                                      xx.xx%         xx.xx%
 
 ......................................................................
25 Years                                      xx.xx%         xx.xx%
 
 ......................................................................
30 Years                                      xx.xx%         xx.xx%
</TABLE>
 
THESE RESULTS DO NOT REFLECT SALES CHARGES. SALES CHARGES ARE REDUCED OR
ELIMINATED FOR LARGER PURCHASES AND PURCHASES BY CERTAIN RETIREMENT PLANS.
 
(1) THESE RESULTS REFLECT AVERAGE ANNUAL COMPOUNDED RATES OF RETURN.
 
(2) THESE FUND RESULTS WERE CALCULATED ACCORDING TO A FORMULA THAT IS REQUIRED
    FOR ALL STOCK AND BOND FUNDS AND INCLUDE THE REINVESTMENT OF DIVIDEND AND
    CAPITAL GAIN DISTRIBUTIONS.
 
(3) THE LIPPER GROWTH AND INCOME FUNDS INDEX IS AN EQUALLY WEIGHTED PERFORMANCE
    INDEX THAT REPRESENTS FUNDS THAT COMBINE A GROWTH-OF-EARNINGS ORIENTATION
    AND AN INCOME REQUIREMENT FOR LEVEL AND/OR RISING DIVIDENDS. THE RESULTS OF
    THE UNDERLYING FUNDS IN THE INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND
    CAPITAL GAIN DISTRIBUTIONS BUT DO NOT REFLECT SALES CHARGES, COMMISSIONS OR
    EXPENSES.
 
                            WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      7
<PAGE>
   THE FOLLOWING INFORMATION RELATING TO THE FUND'S INVESTMENT PORTFOLIO IS
   AS OF THE END OF THE FUND'S FISCAL YEAR, APRIL 30, 1999.
 
<TABLE>
<CAPTION>
                                PERCENT OF
LARGEST INDUSTRY CATEGORIES     NET ASSETS
<S>                             <C>
- ------------------------------------------
xxxxxxxxxxxxx                     xx.xx%
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
</TABLE>
 
<TABLE>
<CAPTION>
                                PERCENT OF
LARGEST INDUSTRY HOLDINGS       NET ASSETS
<S>                             <C>
- ------------------------------------------
xxxxxxxxxxxxx                     xx.xx%
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
</TABLE>
 
<TABLE>
<CAPTION>
                                PERCENT OF
LARGEST INDIVIDUAL HOLDINGS     NET ASSETS
<S>                             <C>
- ------------------------------------------
xxxxxxxxxxxxx                     xx.xx%
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
 .........................................
xxxxxxxxxxxxx                     xx.xx
</TABLE>
 
  BECAUSE THE FUND IS ACTIVELY MANAGED, ITS HOLDINGS WILL CHANGE FROM TIME TO
  TIME.
 
8     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- -------------------------------------------------------------------
 
YEAR 2000
 
The date-related computer issue known as the "Year 2000 problem" could have an
adverse impact on the quality of services provided to the fund and its
shareholders. However, the fund understands that its key service providers --
including the investment adviser and its affiliates -- are taking steps to
address the issue. In addition, the Year 2000 problem may adversely affect the
issuers in which the fund invests. For example, issuers may incur substantial
costs to address the problem. They may also suffer losses caused by corporate
and governmental data processing errors. The fund and its investment adviser
will continue to monitor developments relating to this issue.
 
                            WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      9
<PAGE>
- -------------------------------------------------------------------
 
MANAGEMENT AND ORGANIZATION
 
BUSINESS MANAGER
 
Washington Management Corporation provides facilities and services required to
carry on the fund's general administrative and corporate affairs. These services
encompass general corporate governance, regulatory compliance and oversight of
each of the fund's contractual service providers including custodian operations,
shareholder services and fund share distribution functions. Washington
Management Corporation, a wholly owned subsidiary of The Johnston-Lemon Group,
Incorporated, maintains its principal business address at 1101 Vermont Avenue,
NW, Washington, D.C. 20005.
 
INVESTMENT ADVISER
 
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and other
funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio of the fund.
 
Total management fees paid by the fund, as a percentage of average net assets,
for the previous fiscal year are discussed earlier under "Fees and Expenses of
the Fund."
 
Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company Institute's
Advisory Group on Personal Investing.
 
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
 
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments which are managed by individual counselors.
Counselors decide how their respective segments will be invested within the
limits provided by a fund's objective(s) and policies and by Capital Research
and Management Company's investment committee. In addition, Capital Research and
Management Company's research professionals may make investment decisions with
respect to a portion of a fund's portfolio. The primary individual portfolio
counselors for Washington Mutual Investors Fund are listed on the following
page.
 
10     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
 
<TABLE>
<CAPTION>
                                                                                                YEARS OF EXPERIENCE AS
                                                                                               INVESTMENT PROFESSIONAL
                                                                 YEARS OF EXPERIENCE                (APPROXIMATE)
      PORTFOLIO                                                AS PORTFOLIO COUNSELOR        WITH CAPITAL
     COUNSELORS                                              (AND RESEARCH PROFESSIONAL,     RESEARCH AND
        FOR                                                      IF APPLICABLE) FOR           MANAGEMENT
 WASHINGTON MUTUAL                                        WASHINGTON MUTUAL INVESTORS FUND    COMPANY OR
   INVESTORS FUND              PRIMARY TITLE(S)                     (APPROXIMATE)           ITS AFFILIATES   TOTAL YEARS
<S>                   <C>                                <C>                                <C>            <C>
- --------------------------------------------------------------------------------------------------------------------------
TIMOTHY D. ARMOUR     Chairman and Chief Executive       9 years (plus 4 years as a research 16 years      16 years
                      Officer, Capital Research Company* professional prior to becoming a
                                                         portfolio counselor for the fund)
- --------------------------------------------------------------------------------------------------------------------------
STEPHEN E.            Senior Vice President, Capital     18 years (plus 8 years as a        27 years       33 years
BEPLER                Research Company*                  research professional prior to
                                                         becoming a portfolio counselor for
                                                         the fund)
- --------------------------------------------------------------------------------------------------------------------------
JAMES K.              Senior Vice President and Director, 21 years (plus 7 years as a       37 years       37 years
DUNTON                Capital Research and Management    research professional prior to
                      Company                            becoming a portfolio counselor for
                                                         the fund)
- --------------------------------------------------------------------------------------------------------------------------
GREGG E.              Senior Vice President, Capital     9 years (plus 7 years as a research 26 years      26 years
IRELAND               Research and Management Company    professional prior to becoming a
                                                         portfolio counselor for the fund)
- --------------------------------------------------------------------------------------------------------------------------
JAMES B.              Senior Vice President, Capital     9 years (plus 2 years as a research 17 years      17 years
LOVELACE              Research and Management Company    professional prior to becoming a
                                                         portfolio counselor for the fund)
- --------------------------------------------------------------------------------------------------------------------------
ROBERT G. O'DONNELL   Senior Vice President and Director, 6 years (plus 17 years as a       24 years       27 years
                      Capital Research and Management    research professional prior to
                      Company                            becoming a portfolio counselor for
                                                         the fund)
- --------------------------------------------------------------------------------------------------------------------------
DONALD D.             Vice President, Capital Research   5 years (plus 6 years as a research 14 years      14 years
O'NEAL                and Management Company             professional prior to becoming a
                                                         portfolio counselor for the fund)
- --------------------------------------------------------------------------------------------------------------------------
JAMES F. ROTHENBERG   President and Director, Capital    5 years (plus 9 years as a research 29 years      29 years
                      Research and Management Company    professional-- 1971-1979--prior to
                                                         becoming a portfolio counselor for
                                                         the fund)
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
 
  * COMPANY AFFILIATED WITH CAPITAL RESEARCH AND MANAGEMENT COMPANY.
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      11
<PAGE>
- --------------------------------------------------------------------------------
 
SHAREHOLDER INFORMATION
 
SHAREHOLDER SERVICES
 
American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your needs
and circumstances change. These services are available only in states where they
may be legally offered and may be terminated or modified at any time upon 60
days' written notice. For your convenience, American Funds Service Company has
four service centers across the country.
 
                  AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
                    CALL TOLL-FREE FROM ANYWHERE IN THE U.S.
                             (8 A.M. TO 8 P.M. ET):
                                  800/421-0180
                                     [MAP]
 
<TABLE>
  <S>                   <C>                   <C>                   <C>
  WESTERN               WESTERN CENTRAL       EASTERN CENTRAL       EASTERN
  SERVICE CENTER        SERVICE CENTER        SERVICE CENTER        SERVICE CENTER
  American Funds        American Funds        American Funds        American Funds
  Service Company       Service Company       Service Company       Service Company
  P.O. Box 2205         P.O. Box 659522       P.O. Box 6007         P.O. Box 2280
  Brea, California      San Antonio, Texas    Indianapolis,         Norfolk, Virginia
  92822-2205            78265-9522            Indiana               23501-2280
  Fax: 714/671-7080     Fax: 210/474-4050     46206-6007            Fax: 757/670-4773
                                              Fax: 317/735-6620
</TABLE>
 
A COMPLETE DESCRIPTION OF THE SERVICES WE OFFER IS INCLUDED IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is sent
to new shareholders and is available by writing or calling American Funds
Service Company.
 
YOU MAY INVEST IN THE FUND THROUGH VARIOUS RETIREMENT PLANS. However, some
retirement plans or accounts held by investment dealers may not offer certain
services. If you have any questions, please contact your plan
administrator/trustee or dealer.
 
12     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
 
PURCHASE AND EXCHANGE OF SHARES
 
PURCHASE
 
Generally, you may open an account by contacting any investment dealer
authorized to sell the fund's shares. You may purchase additional shares using
various options described in the statement of additional information and
"Welcome to the Family."
 
EXCHANGE
 
You may exchange your shares into other funds in The American Funds Group
generally without a sales charge. Exchange of shares from the money market funds
initially purchased without a sales charge generally will be subject to the
appropriate sales charge. Exchanges have the same tax consequences as ordinary
sales and purchases. See "Transactions by Telephone..." for information
regarding electronic exchanges.
 
THE FUND AND AMERICAN FUNDS DISTRIBUTORS, THE FUND'S PRINCIPAL UNDERWRITER,
RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER FOR ANY REASON. ALTHOUGH THERE IS
CURRENTLY NO SPECIFIC LIMIT ON THE NUMBER OF EXCHANGES YOU CAN MAKE IN A PERIOD
OF TIME, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT
ANY PURCHASE ORDER AND MAY TERMINATE THE EXCHANGE PRIVILEGE OF ANY INVESTOR
WHOSE PATTERN OF EXCHANGE ACTIVITY THEY HAVE DETERMINED INVOLVES ACTUAL OR
POTENTIAL HARM TO THE FUND.
 
INVESTMENT MINIMUMS
 
<TABLE>
<S>                                                           <C>
- ------------------------------------------------------------------
To establish an account                                       $250
  For a retirement plan account                               $250
  For a retirement plan account through payroll deduction     $ 25
To add to an account                                          $ 50
  For a retirement plan account through payroll deduction     $ 25
</TABLE>
 
SHARE PRICE
 
The fund calculates its share price, also called net asset value, as of 4:00
p.m. New York time which is the normal close of trading on the New York Stock
Exchange, every day the Exchange is open. In calculating net asset value, market
prices are used when available. If a market price for a particular security is
not available, the fund will determine the appropriate price for the security.
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      13
<PAGE>
Your shares will be purchased at the offering price, or sold at the net asset
value, next determined after American Funds Service Company receives and accepts
your request. The offering price is the net asset value plus a sales charge, if
applicable.
 
SALES CHARGE
 
A sales charge may apply to your purchase. Your sales charge may be reduced for
larger purchases as indicated below.
 
<TABLE>
<CAPTION>
                                                SALES CHARGE AS A PERCENTAGE OF
                                               .................................
                                                                        NET            DEALER CONCESSION
                                                 OFFERING             AMOUNT                AS % OF
INVESTMENT                                         PRICE             INVESTED           OFFERING PRICE
<S>                                            <C>                 <C>                 <C>
- --------------------------------------------------------------------------------------------------------
Less than $50,000                                      5.75%               6.10%             5.00%
 .......................................................................................................
$50,000 but less than $100,000                         4.50%               4.71%             3.75%
 .......................................................................................................
$100,000 but less than $250,000                        3.50%               3.63%             2.75%
 .......................................................................................................
$250,000 but less than $500,000                        2.50%               2.56%             2.00%
 .......................................................................................................
$500,000 but less than $1 million                      2.00%               2.04%             1.60%
 .......................................................................................................
$1 million or more and certain other
investments described below                      see below           see below             see below
</TABLE>
 
PURCHASES NOT SUBJECT TO SALES CHARGE
 
Investments of $1 million or more and investments made by employer-sponsored
defined contribution-type plans with 100 or more eligible employees are sold
with no initial sales charge. A 1% CONTINGENT DEFERRED SALES CHARGE MAY BE
IMPOSED ON CERTAIN REDEMPTIONS BY ACCOUNTS THAT INVEST WITH NO INITIAL SALES
CHARGE (OTHER THAN EMPLOYER-SPONSORED PLANS), IF REDEMPTIONS ARE MADE WITHIN ONE
YEAR OF PURCHASE. A dealer concession of up to 1% may be paid by the fund under
its Plan of Distribution and/or by American Funds Distributors on investments
made with no initial sales charge.
 
REDUCING YOUR SALES CHARGE
 
You and your immediate family may combine investments to reduce your sales
charge. You must let your investment dealer or American Funds Service Company
know if you qualify for a reduction in your sales charge using one or any
combination of the methods described in the statement of additional information
and "Welcome to the Family."
 
PLAN OF DISTRIBUTION
 
The fund has a Plan of Distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board
 
14     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
of directors. Up to 0.25% of average net assets is paid annually to qualified
dealers for providing certain services pursuant to the fund's Plan of
Distribution. The 12b-1 fee paid by the fund, as a percentage of average net
assets, for the previous fiscal year is indicated earlier under "Fees and
Expenses of the Fund." Since these fees are paid out of the fund's assets on an
ongoing basis, over time they will increase the cost of an investment and may
cost you more than paying higher initial sales charges.
 
OTHER COMPENSATION TO DEALERS
 
American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for dealers, as described in the statement of additional
information.
 
HOW TO SELL SHARES
 
Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:
 
  THROUGH YOUR DEALER (CERTAIN CHARGES MAY APPLY)
 
  -  Shares held for you in your dealer's name must be sold through the dealer.
 
  WRITING TO AMERICAN FUNDS SERVICE COMPANY
 
  -  Requests must be signed by the registered shareholder(s)
 
  -  A signature guarantee is required if the redemption is:
 
     -- Over $50,000;
 
     -- Made payable to someone other than the registered shareholder(s); or
 
     -- Sent to an address other than the address of record, or an address of
        record which has been changed within the last 10 days.
 
  -  Additional documentation may be required for sales of shares held in
     corporate, partnership or fiduciary accounts.
 
  TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
  FUNDSLINE-REGISTERED TRADEMARK- OR AMERICAN FUNDSLINE ONLINE-REGISTERED
  TRADEMARK-:
 
  -  Redemptions by telephone or fax (including American FundsLine and American
     FundsLine OnLine) are limited to $50,000 per shareholder each day
 
  -  Checks must be made payable to the registered shareholder
 
  -  Checks must be mailed to an address of record that has been used with the
     account for at least 10 days
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      15
<PAGE>
TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE, OR AMERICAN FUNDSLINE ONLINE
 
Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all of
these services. You may reinstate these services at any time.
 
Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, the fund's business
manager, and each of their respective directors, trustees, officers, employees
and agents harmless from any losses, expenses, costs or liabilities (including
attorney fees) which may be incurred in connection with the exercise of these
privileges, provided American Funds Service Company employs reasonable
procedures to confirm that the instructions received from any person with
appropriate account information are genuine. If reasonable procedures are not
employed, it and/or the fund may be liable for losses due to unauthorized or
fraudulent instructions.
 
16     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
 
DISTRIBUTION ARRANGEMENTS
 
DIVIDENDS AND DISTRIBUTIONS
 
The fund intends to pay dividends to you, usually in March, June, September and
December. Capital gains, if any, are usually distributed in December.
 
You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash.
 
TAX CONSEQUENCES
 
Dividends and capital gains are generally taxable whether they are reinvested or
received in cash -- unless you are exempt from taxation or entitled to tax
deferral. Capital gains may be taxed at different rates depending on the length
of time the fund holds its assets.
 
The tax treatment of redemptions from a retirement plan account may differ from
redemptions from an ordinary shareholder account.
 
You must provide the fund with a certified correct taxpayer identification
number (generally your Social Security Number) and certify that you are not
subject to backup withholding. If you fail to do so, the IRS can require the
fund to withhold 31% of your taxable distributions and redemptions. Federal law
also requires the fund to withhold 30% or the applicable tax treaty rate from
dividends paid to certain nonresident alien, non-U.S. partnership and non-U.S.
corporation shareholder accounts.
 
Please see the statement of additional information, "Welcome to the Family," and
your tax adviser for further information.
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      17
<PAGE>
- --------------------------------------------------------------------------------
 
FINANCIAL HIGHLIGHTS
 
The financial highlights table is intended to help you understand the fund's
results for the past five years. Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate that
an investor would have earned or lost on an investment in the fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, whose report, along with the fund's
financial statements, is included in the statement of additional information,
which is available upon request.
 
<TABLE>
<CAPTION>
                                                    YEAR ENDED APRIL 30
                                            ...................................
                                          1999     1998     1997     1996    1995
<S>                                      <C>      <C>      <C>      <C>     <C>
                                         -----------------------------------------
Net asset value,
beginning of period                       $XX.XX   $25.93   $22.77  $18.87  $17.11
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income                        .XX      .62      .62     .63     .63
 .................................................................................
Net gains or losses on securities
(both realized and unrealized)              X.XX     9.65     4.36    4.98    2.16
- ----------------------------------------------------------------------------------
Total from investment operations            X.XX    10.27     4.98    5.61    2.79
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends (from net investment income)     (.XX)    (.62)    (.62)   (.62)   (.62)
 .................................................................................
Distributions (from capital gains)        (X.XX)   (1.66)   (1.20)  (1.09)   (.41)
 .................................................................................
Total distributions                       (X.XX)   (2.28)   (1.82)  (1.71)  (1.03)
- ----------------------------------------------------------------------------------
Net asset value, end of period            $XX.XX   $33.92   $25.93  $22.77  $18.87
- ----------------------------------------------------------------------------------
Total return(1)                           XX.XX%   40.80%   22.43%  30.40%  17.01%
- ----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions)    $XX,XXX  $45,764  $28,165  $20,689 $14,426
 .................................................................................
Ratio of expenses to average net assets     .XX%     .62%     .64%    .66%    .69%
 .................................................................................
Ratio of net income to average net
assets                                     X.XX%    2.08%    2.56%   2.98%   3.57%
 .................................................................................
Portfolio turnover rate                   XX.XX%   17.61%   20.41%  23.41%  25.45%
</TABLE>
 
(1)EXCLUDES MAXIMUM SALES CHARGE OF 5.75%.
 
18     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
 
NOTES
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      19
<PAGE>
- -------------------------------------------------------------------
 
NOTES
 
20     WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- -------------------------------------------------------------------
 
NOTES
 
                           WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS      21
<PAGE>
 
<TABLE>
<S>                   <C>                   <C>
FOR SHAREHOLDER       FOR RETIREMENT PLAN   FOR DEALER
SERVICES              SERVICES              SERVICES
American Funds        Call your employer    American Funds
Service Company       or                    Distributors
800/421-0180          plan administrator    800/421-9900 ext. 11
                      FOR 24-HOUR INFORMATION
American                    American Funds
FundsLine-Registered        Internet Web site
Trademark-                  http://www.americanfunds.com
800/325-3590
</TABLE>
 
  Telephone conversations may be recorded or monitored for verification,
  recordkeeping and quality assurance purposes.
  ------------------------------------------------------------------
 
  MULTIPLE TRANSLATIONS
 
  This prospectus may be translated into other languages. In the event of any
  inconsistencies or ambiguity as to the meaning of any word or phrase in a
  translation, the English text will prevail.
  ------------------------------------------------------------------
 
  OTHER FUND INFORMATION
 
  ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS
  Contains additional information about the fund including financial
  statements, investments results, portfolio holdings, a statement from
  portfolio management discussing market conditions and the fund's investment
  strategies, and the independent accountants' report (in the annual report).
 
  STATEMENT OF ADDITIONAL INFORMATION (SAI)
  Contains more detailed information on all aspects of the fund, including the
  fund's financial statements.
 
  A current SAI has been filed with the Securities and Exchange Commission
  ("SEC") and is incorporated by reference into this prospectus. The SAI and
  other related materials about the fund are available for review or to be
  copied at the SEC's Public Reference Room in Washington, D.C.
  (1-800-SEC-0330) or on the SEC's Internet Web site at http://www.sec.gov.
 
  CODE OF ETHICS
  Includes a description of the investment adviser's personal investing
  policy.
 
  To request a free copy of any of the documents above:
 
<TABLE>
<S>                  <C>        <C>
Call American Funds     or      Write to the Secretary of the
Service Company                 fund
800/421-0180 ext. 1             1101 Vermont Avenue, NW
                                Washington, DC 20005
</TABLE>
 
   Investment Company File No. 811-604       [LOGO] Printed on recycled paper
    
 
 
                     WASHINGTON MUTUAL INVESTORS FUND, INC.
                                    PART B
                      STATEMENT OF ADDITIONAL INFORMATION
   
                                June 22, 1999
 
This document is not a prospectus but should be read in conjunction with the
current prospectus dated June 22, 1999 of  Washington Mutual Investors Fund,
Inc. (the fund or WMIF).  The prospectus may be obtained from your investment
dealer or financial planner or by writing to the fund at the following address:
    
                    WASHINGTON MUTUAL INVESTORS FUND, INC.
                           Attention:  Secretary
                         1101 Vermont Avenue, N.W.
                          Washington, D.C. 20005
                             (202) 842-5665
 
Shareholders who purchase shares at net asset value through eligible retirement
plans should note that not all of the services or features described below may
be available to them, and they should contact their employer for details.
                             
                            TABLE OF CONTENTS
   
<TABLE>
<CAPTION>
ITEM                                                   PAGE NO.              
 
Description of Certain Securities and Investment Techniques           1              
 
<S>                                                    <C>                   
The Fund and Its Investment Objective and Policies      2                    
 
Investment Restrictions                                 2                    
 
Fund Organization                                            3               
 
Fund Directors, Advisory Board Members and Officers     4                    
 
Management                                              9                    
 
Dividends, Distributions and Federal Taxes              12                   
 
Purchasing Shares                                       15                   
 
Selling Shares                                          20                   
 
Shareholder Account Services and Privileges             22                   
 
Execution of Portfolio Transactions                     24                   
 
General Information                                     24                   
 
Investment Results and Related Statistics               25                   
 
Financial Statements                                    Attached             
 
                                                                             
 
</TABLE>
    
          DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES
 
As set forth in its Prospectus, only common stocks and securities convertible
into common stocks meeting the fund's Investment Standards and on the fund's
Eligible List may be held by the fund; however, the fund may also hold, to a
limited extent, short-term U.S. Government securities, cash and cash
equivalents.  
   
EQUITY SECURITIES -- Equity securities represent an ownership position in a
company. The prices of equity securities fluctuate based on changes in the
financial condition of their issuers and on market and economic conditions. The
fund's results will be related to the overall market for these securities.
 
CONVERTIBLE SECURITIES -- The fund may purchase securities convertible into
common stocks where the issuing corporation meets the fund's Investment
Standards and appears on the fund's Eligible List.  The value of convertible
securities (which have both debt and equity characteristics) varies in response
to many factors, including the value of the underlying equity, general market
and economic conditions, convertible market valuations, as well as, changes in
interest rates, credit spreads and the credit quality of the issuer.
    
U.S. GOVERNMENT SECURITIES, CASH AND CASH EQUIVALENTS -- These securities may
include direct obligations of the U.S. Treasury (such as Treasury bills, notes
and bonds), federal agency obligations guaranteed as to principal and interest
by the U.S. Treasury, and certain securities issued by U.S. Government
instrumentalities and certain federal agencies which securities are neither
direct obligations of, nor guaranteed by, the Treasury.  These latter
securities, however, generally involve federal sponsorship in one way or
another; some are backed by specific types of collateral;  some are supported
by the issuer's right to borrow from the Treasury; some are supported by the
discretionary authority of the Treasury to purchase certain obligations of the
issuer; and others are supported only by the credit of the issuing government
agency or instrumentality. 
 
               THE FUND AND ITS INVESTMENT OBJECTIVE AND POLICIES
   
The fund has Investment Standards based upon criteria established by the United
States District Court for the District of Columbia for determining eligibility
under the Court's Legal List procedure which was in effect for many years.  The
fund has an Eligible List of investments, originally based upon the Court's
List of Legal Investments for Trust Funds in the District of Columbia. The
Investment Adviser is required to select the fund's investments exclusively
from the Eligible List.  The Investment Adviser monitors the Eligible List and
makes recommendations to the Board of Directors of changes necessary for
continued compliance with the fund's Investment Standards. 
    
It is believed that in applying the above disciplines and procedures, the fund
makes available to pension and profit-sharing trustees and other fiduciaries a
prudent stock investment and an assurance of continuity of investment quality
which it has always been the policy of the fund to provide.  However, fiduciary
investment responsibility and the Prudent Investor Rule involve a mixed
question of law and fact which cannot be conclusively determined in advance. 
Moreover, recent changes to the Prudent Investor Rule in some jurisdictions
speak to an allocation of funds among a variety of investments. Therefore, each
fiduciary should examine the common stock portfolio of the fund to see that it,
along with other investments, meets the requirements of the specific trust.
 
                            INVESTMENT RESTRICTIONS
 
The fund has adopted certain fundamental policies and  investment restrictions
for the protection of shareholders that may not be changed without shareholder
approval. Approval requires the affirmative vote of  67% or more of the  voting
securities present at a meeting of shareholders, provided  more than 50% of 
such securities are represented at the meeting or the vote of  more than 50% of
the outstanding voting securities, whichever is less.  Investment limitations
expressed in the following restrictions are considered at the time securities
are purchased and are based on the fund's net assets unless otherwise
indicated.
 
  The fund may not:
   Purchase any security which is not legal for the investment of trust funds  
   in the District of Columbia;
 
   Purchase or sell real estate or commodities;
 
   Make a purchase which would cause more than 5% of the value of the total    
   assets of the fund to be invested in the securities of any one issuer;
 
   Make a purchase which would cause more than 10% of the outstanding          
   securities of any issuer to be held in the portfolio of the fund;
 
   Invest in companies for the purpose of exercising control or management and 
   may not invest in securities of other investment companies;
 
   Purchase securities on margin or sell securities short;
 
   Lend money;
 
   Borrow money except for temporary or emergency purposes and not for    
investment purposes and then only from banks in an amount not exceeding at the
time of borrowing 10% of the fund's net assets, nor pledge or hypothecate more
than 10% of its net assets and then only to secure such borrowing, provided
that the fund may not purchase portfolio securities during any period when
loans amounting to 5% or more of the fund's net assets are outstanding; and
 
 Purchase any securities which would cause 25% or more of the value of its
total assets at the time of such purchase to be invested in the securities of
one or more issuers having their principal business activities in the same
industry.  The Board of Directors, acting upon the recommendations of the
Advisory Board, may from time to time establish lower limitations on the amount
of investment in specific industries.
   
It is the declared policy of the fund to maintain a fully  invested position
with cash equivalents not to exceed 5% of net assets after allowing for sales
of portfolio securities and fund shares within thirty days and the accumulation
of cash balances representing undistributed net investment income and realized
capital gains. 
 
Notwithstanding the restriction on investing in the securities of other
investment companies, the fund may invest in securities of other investment
companies if deemed advisable by its officers in connection with the
administration of a deferred compensation plan adopted by Directors as
permitted by the Securities and Exchange Commission. 
    
The fund does not act as an underwriter of securities issued by others, except
to the extent that the disposal of an investment position may technically
constitute the fund an underwriter as the term is defined in the Securities Act
of 1933.
   
                               FUND ORGANIZATION
 
The fund, an open-end, diversified management investment company, was organized 
as a Delaware corporation in 1952 and reincorporated as a Maryland corporation
in 1990.  All fund operations are supervised by the fund's Board of Directors
which meets periodically and performs duties required by applicable state and
federal laws.  Members of the Board and Advisory Board who are not affiliated
with the fund's management are paid certain fees for services rendered to the
fund as described in the statement of additional information.  They may elect
to defer all or a portion of these fees through a deferred compensation plan in
effect for the fund.  
 
                           SHAREHOLDER VOTING RIGHTS
 
The fund does not hold annual meetings of its shareholders.  However,
significant corporate matters which require shareholder approval, such as
certain elections of Board members or a change in a fundamental investment
policy, will be presented to shareholders at a meeting called for such purpose. 
Shareholders have one vote per share owned.  At the request of the holders of
at least 10% of the shares, the fund will hold a meeting at which any member of
the Board could be removed by a majority vote.
    
FUND DIRECTORS, ADVISORY BOARD MEMBERS AND OFFICERS
(WITH THEIR PRINCIPAL OCCUPATIONS DURING THE PAST FIVE YEARS)#
DIRECTOR AND ADVISORY BOARD COMPENSATION
   
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE       POSITION WITH       PRINCIPAL OCCUPATION(S)   AGGREGATE COMPENSATION     TOTAL COMPENSATION   TOTAL
NUMBER   
                            REGISTRANT          DURING PAST 5 YEARS#   (INCLUDING VOLUNTARILY DEFERRED   FROM ALL FUNDS       OF
FUND        
                                                                      COMPENSATION/1/) FROM FUND   AFFILIATED WITH THE   BOARDS ON  
   
                                                                      DURING FISCAL YEAR ENDED   AMERICAN FUNDS       WHICH         
 
                                                                      4/30/99                    GROUP                INDIVIDUAL    
 
                                                                                                                      SERVES/2/     
 
 
<S>                         <C>                 <C>                   <C>                        <C>                  <C>           
 
Charles T. Akre             Director Emeritus   Miller & Chevalier,   $xx,xxx                    $xx,xxx              1             
 
700 John Ringling Blvd.                         Chartered,                                                                          
 
Apt. 1108                                       Of Counsel                                                                          
 
Sarasota, FL  34236                                                                                                                 
 
Age: 89                                                                                                                             
 
 
Cyrus A. Ansary             Director            Investment Services   $xx,xxx                    $xx,xxx              3             
 
1725 K Street, N.W., Suite 410                            International Co.,                                                        
          
Washington, D.C. 20006                          President                                                                           
 
Age: 65                                                                                                                             
 
 
Nathan A. Baily             Director Emeritus   Management, Marketing,   $xx,xxx                    $xx,xxx              1          
   
5516 Greystone Street                           Education Consultant                                                                
 
Chevy Chase, MD  20815                                                                                                              
 
Age: 78                                                                                                                             
 
 
John A. Beck{               Director Emeritus   Washington Management   none/4/                    none/4/              1           
  
Age: 73                                         Corporation, Counsel                                                                
 
 
Fred J. Brinkman*{          Director            Washington Management   none/4/                    none/4/              1           
  
Age: 70                                         Corporation, Senior                                                                 
 
                                                Financial Consultant                                                                
 
 
Charles A. Bowsher          Advisory Board      Retired Comptroller    $x,xxx                     $x,xxx               1            
 
4503 Boxwood Road           Member              General of                                                                          
 
Bethesda, MD 20816                              The United States                                                                   
 
Age: 68                                                                                                                             
 
 
Mary K. Bush                Advisory Board      Bush & Company,       $x,xxx                     $x,xxx               1             
 
4201 Cathedral Ave., N.W.   Member              President                                                                           
 
Number 1016 East                                                                                                                    
 
Washington, D.C.  20016                                                                                                             
 
Age: 51                                                                                                                             
 
 
Daniel J. Callahan III      Director            The Morris & Gwendolyn   $xx,xxx                    $xx,xxx              1          
   
1825 K Street, N.W.                             Cafritz Foundation,                                                                 
 
Washington, D.C. 20006                          Vice Chairman &                                                                     
 
Age: 67                                         Treasurer                                                                           
 
 
Stephen Hartwell*{          Chairman of the Board    Washington Management   none/4/                    none/4/              3      
       
Age: 84                                         Corporation, Chairman of                                                            
     
                                                the Board                                                                           
 
 
Vernon W. Holleman, Jr.     Advisory Board      Vernon W. Holleman, Jr.   $x,xxx/3/                  $x,xxx               1         
    
5550 Friendship Drive       Member              Company, President                                                                  
 
Suite 502                                                                                                                           
 
Chevy Chase, MD 20815                                                                                                               
 
Age: 63                                                                                                                             
 
 
James H. Lemon, Jr.*{       Vice Chairman of the   The Johnston-Lemon    none/4/                    none/4/              3          
   
Age: 63                     Board               Group, Incorporated,                                                                
 
                                                Chairman of the Board                                                               
  
                                                and                                                                                 
 
                                                Chief Executive Officer                                                             
    
 
Harry J. Lister*{           President           Washington Management   none/4/                    none/4/              3           
  
Age: 63                                         Corporation, President                                                              
   
                                                and Director                                                                        
 
 
James C. Miller III         Director            Citizens for a Sound   $xx,xxx                    $xx,xxx              1            
 
1250 H Street, N.W., Suite 700                       Economy, Counselor                                                             
     
Washington, D.C.  20005                                                                                                             
 
Age: 56                                                                                                                             
 
 
Bernard J. Nees             Chairman Emeritus of   Washington Management   none/4/                    none/4/              1        
     
1101 Vermont Avenue, N.W.   the Board           Corporation,                                                                        
 
Washington, D.C.  20005                         Former Chairman                                                                     
 
Age: 91                                                                                                                             
 
 
Katherine D. Ortega         Advisory Board      Former Treasurer of the   $x,xxx/3/                  $x,xxx               1         
    
800 25th Street, NW         Member              United States                                                                       
 
Suite 1003                                                                                                                          
 
Washington, D.C. 20038                                                                                                              
 
Age: 65                                                                                                                             
 
 
Mr. John Knox Singleton     Advisory Board      President, INOVA      $x,xxx/3/                  $x,xxx               1             
 
8001 Braddock Road          Member              Health System                                                                       
 
Springfield, VA 22151                                                                                                               
 
Age: 50                                                                                                                             
 
 
Jean Head Sisco             Director Emeritus   Sisco Associates,     $xx,xxx                    $xx,xxx              3             
 
2517 Massachusetts Avenue, N.W.                       Management Consulting                                                         
        
Washington, D.C. 20008                          Firm, Partner                                                                       
 
Age: 73                                                                                                                             
 
 
T. Eugene Smith             Director            T. Eugene Smith, Inc.,   $xx,xxx                    $xx,xxx              3          
   
666 Tintagel Lane                               President                                                                           
 
McLean, VA 22101                                                                                                                    
 
Age: 68                                                                                                                             
 
 
William B. Snyder           Advisory Board      Southern Heritage     $x,xxx                     $x,xxx               1             
 
6900 Wisconsin Avenue, Suite 304   Member              Insurance Company,                                                           
       
Bethesda, MD  20815                             Chairman                                                                            
 
Age: 69                                                                                                                             
 
 
Leonard P. Steuart II       Director            Steuart Investment    $xx,xxx/3/                 $xx,xxx              1             
 
5454 Wisconsin Avenue                           Company, Vice President                                                             
    
Suite 1600                                                                                                                          
 
Chevy Chase, MD 20815                                                                                                               
 
Age: 64                                                                                                                             
 
 
Robert F. Tardio            Advisory Board      Independent Consultant   $x,xxx                     $x,xxx               1          
   
11204 River View Drive      Member                                                                                                  
 
Potomac, MD 20854                                                                                                                   
 
Age:70                                                                                                                              
 
 
Margita E. White            Director            Association for Maximum   $xx,xxx                    $xx,xxx              1         
    
1776 Massachusetts Avenue, N.W.                       Service Television Inc.,                                                      
           
Suite 310                                       President                                                                           
 
Washington, D.C. 20036                                                                                                              
 
Age: 61                                                                                                                             
 
 
Stephen G. Yeonas           Director Emeritus   Stephen G. Yeonas     $xx,xxx/3/                 $xx,xxx              3             
 
6867 Elm Street, Suite 210                       Company, Chairman of                                                               
  
McLean, VA 22101                                the Board and Chief                                                                 
 
Age: 74                                         Executive Officer                                                                   
 
 
                                                                                                                                    
 
 
</TABLE>
 
# Positions within the organizations listed may have changed during this
period.
* Directors who are considered "interested persons" as defined in the 1940 Act,
on the basis of their affiliation with the fund's  Business Manager, Washington
Management Corporation.
{ Address is 1101 Vermont Avenue, N.W., Washington, D.C. 20005.
/1/Amounts may be deferred by eligible Directors and Advisory Board members
under a non-qualified deferred compensation plan adopted by the fund in 1993. 
Deferred amounts accumulate at an earnings rate determined by the total return
of one or more funds in The American Funds Group as designated by the Director
or Advisory Board member. 
/2/In each instance where a Director of the fund serves on other funds
affiliated with The American Funds Group, such service is as a trustee of The
Tax-Exempt Fund of  Maryland and The Tax-Exempt Fund of Virginia, both
portfolios of The American Funds Tax-Exempt Series I.  Earnings from these
funds reflect the latest fiscal year  (8/1/97 -- 7/31/98).
/3/Since the plan's adoption, the total amount of deferred compensation accrued
by the fund (plus earnings thereon) through 3/31/99, the latest calendar
quarter, for participants is as follows: Director Leonard P. Steuart II
($xx,xxx), Director Emeritus Stephen G. Yeonas ($xxx,xxx), and Advisory Board
members Katherine Ortega ($x,xxx), Vernon W. Holleman, Jr. ($xx,xxx) and  J.
Knox Singleton ($x,xxx) Amounts deferred and accumulated earnings thereon are
not funded and are general unsecured liabilities of the fund until paid to the
participant.
/4/John A. Beck, Fred J. Brinkman, Stephen Hartwell, James H. Lemon, Jr., Harry
J. Lister and Bernard J. Nees are affiliated with the Business Manager and,
accordingly, receive no remuneration from the fund.//
 
 
OTHER OFFICERS
(WITH THEIR PRINCIPAL OCCUPATIONS DURING THE PAST FIVE YEARS)#
1101 VERMONT AVENUE, N.W., WASHINGTON, D.C. 20005
 
HOWARD L. KITZMILLER   (Age: 69) 
Senior Vice President, Secretary 
and Assistant Treasurer
Washington Management Corporation,
Senior Vice President, Secretary, 
Assistant Treasurer and Director 
 
RALPH S. RICHARD   (Age: 80) 
Vice President and Treasurer
Washington Management Corporation,
Vice President, Treasurer and Director
 
LOIS A. ERHARD   (Age: 47) 
Vice President
Washington Management Corporation, 
Vice President
 
MICHAEL W. STOCKTON   (Age: 32) 
Assistant Vice President, Assistant Secretary and Assistant Treasurer
Washington Management Corporation,
Assistant Vice President, Assistant Secretary  and Assistant Treasurer
 
J. LANIER FRANK (Age: 38)
Assistant Vice President
Washington Management Corporation,
Assistant Vice President
 
# Positions within the organizations listed may have changed during this
period.
 
All of the officers listed are officers of the Business Manager.  Most of the
Directors and officers are also officers and/or directors and/or trustees of
one or more of the other funds for which Washington Management Corporation
serves as Business Manager.  All unaffiliated Directors receive from the fund a
fee of $40,000 per annum and an attendance fee of $2,000 for each board meeting
attended.  The chairman of a committee receives an attendance fee of $1,500 and
committee members receive $1,000 for each committee meeting attended.  No
Director compensation is paid by the fund to any officer or Director who is a
director, officer or employee of the Business Manager, the Investment Adviser
or affiliated companies.  Directors Emeritus receive from the fund a fee of
$20,000 per annum plus $500 per Board meeting attended. 
     
The Board of Directors has established an Advisory Board whose members are, in
the judgment of the Directors, highly knowledgeable about political and
economic matters.  In addition to holding meetings with the Board of Directors,
members of the Advisory Board, while not participating in specific investment
decisions, consult from time to time with the Investment Adviser, primarily
with respect to trade and business conditions.  Members of the Advisory Board,
however, possess no authority or responsibility with respect to the fund's
investments or management.  Members of the Advisory Board receive a fee of
$5,000 per annum plus $1,000 per meeting attended. 
 
Directors and Advisory Board Members, but not Directors Emeritus, may elect, on
a voluntary basis, to defer all or a portion of these fees through a deferred
compensation plan in effect for the fund.  The fund also reimburses certain
meeting-related expenses of the Directors, Directors Emeritus and Advisory
Board members.  For deferred compensation, see footnote 3 at page 8.  As of May
31, 1999 the directors, officers and Advisory Board members, as a group, owned
beneficially or of record less than 1% of the outstanding shares.  The Business
Manager has established a charitable foundation, The Washington Management
Corporation Foundation, which makes contributions to charities organized under
Section 501 (c)(3) or 509(a)(2) of the Internal Revenue Code.  Directors,
Directors Emeriti, Advisory Board members and officers of the fund, as well as
all employees of the Business Manager and its affiliates, may participate in a
gift matching program sponsored by the Foundation.
    
                                   MANAGEMENT
 
BUSINESS MANAGER -  Since its inception, the fund has operated under a Business
Management Agreement with Washington Management Corporation or its
predecessors, 1101 Vermont Avenue, N.W., Washington, D.C. 20005.
   
The primary function of the Business Manager is to oversee the various services
and operations of the fund.  The Business Manager provides services necessary
to carry on the fund's general administrative and corporate affairs.  These
services include all executive personnel, clerical staff, office space and
equipment, arrangements for and supervision of all shareholder services,
federal and state regulatory compliance and responsibility for accounting and
record keeping facilities. The Business Manager provides similar services to
other mutual funds.
    
The fund pays all expenses not specifically assumed by the Business Manager,
including, but not limited to, custodian,  transfer and dividend disbursing
agency fees and expenses; costs of the designing, printing, and mailing of
reports, prospectuses, proxy statements, and notices to its shareholders;
expenses of shareholders' meetings; taxes; insurance; expenses of the issuance,
sale (including stock certificates, registration and qualification expenses),
or repurchase of shares of the fund; legal and auditing expenses; expenses
pursuant to the fund's Plan of Distribution; fees and expense reimbursements
paid to Directors and Advisory Board members; association dues; and costs of
stationery and forms prepared exclusively for the fund.
   
The Business Manager receives a monthly fee, accrued daily, at the annual rate
of 0.175% of the first $3 billion of the fund's net assets, 0.15% of net assets
in excess of $3 billion but not exceeding $5 billion, 0.135% of net assets in
excess of $5 billion but not exceeding $8 billion, 0.12% of net assets in
excess of $8 billion but not exceeding $12 billion, 0.095% of nets assets in
excess of $12 billion but not exceeding $21 billion and 0.075% of net assets in
excess of $21 billion but not exceeding $34 billion, 0.06% of net assets in
excess of $34 billion but not exceeding $55 billion and 0.05% of net assets in
excess of $55 billion.  During the fiscal years ended April 30, 1999, 1998 and
1997, the Business Manager's fees amounted to $xx,xxx,xxx, $36,895,000 and
$28,014,000, respectively.
 
The current Business Management Agreement, unless sooner  terminated, will
continue in effect until August 31, 1999 and may be renewed from year to year
thereafter, provided that any such renewal has been specifically approved at
least annually by the Board of Directors and the vote of a majority of
directors who are not parties to the Agreement or interested persons (as
defined in the 1940 Act) of any such party, cast in person at a meeting called
for the purpose of voting on such approval.  The Agreement provides that the
Business Manager has no liability to the fund for its acts or omissions in the
performance of its obligations to the fund not involving willful misfeasance,
bad faith, gross negligence or reckless disregard of its obligations under the
Agreement. The Agreement also provides that either party has the right to
terminate it, without penalty, upon sixty (60) days' written notice to the
other party.
    
INVESTMENT ADVISER -   The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad (Los Angeles, San Francisco, New
York, Washington, D.C., London, Geneva, Singapore, Hong Kong and Tokyo), with a
staff of professionals, many of whom have a number of years of investment
experience.  The Investment Adviser is located at 333 South Hope Street, Los
Angeles, CA 90071, and at 135 South State College Boulevard, Brea, CA 92821. 
The Investment Adviser's  professionals travel several million miles a year,
making more than 5,000 research visits in more than 50 countries around the
world.  The Investment Adviser believes that it is able to attract and retain
quality personnel.  The Investment Adviser is a wholly owned subsidiary of The
Capital Group Companies, Inc. 
 
An affiliate of the Investment Adviser compiles indices for major stock markets
around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
   
The Investment Adviser is responsible for more than $200 billion of stocks,
bonds and money market instruments and serves over eight million investors of
all types throughout the world.  These investors include privately owned
businesses and large corporations, as well as schools, colleges, foundations
and other non-profit and tax-exempt organizations.  
    
The Investment Adviser manages the investment portfolio of the fund subject to
the policies established by the Board of Directors and places orders for the
fund's portfolio securities transactions.  The Investment Adviser receives a
monthly fee, accrued daily, at the annual rate of 0.225% of the first $3
billion of the fund's net assets, 0.21% of net assets in excess of $3 billion
but not exceeding $8 billion, 0.20% of net assets in excess of $8 billion but
not exceeding $21 billion, 0.195% of net assets in excess of $21 billion but
not exceeding $34 billion,  0.19% of net assets in excess of $34 billion but
not exceeding $55 billion and 0.185% in excess of $55 billion. During the
fiscal years ended April 30, 1999, 1998 and 1997, the Investment Adviser's fees
amounted to $xx,xxx,xxx, $73,646,000 and $49,383,000, respectively.
   
The Investment Advisory Agreement, unless sooner terminated, will continue in
effect until August 31, 1999 and may be renewed from year to year thereafter,
provided that any such renewal has been specifically approved at least annually
by (i) the Board of Directors, or by the vote of a majority (as defined in the
1940 Act) of the outstanding voting securities of the fund, and (ii) the vote
of a majority of directors who are not parties to the Agreement or interested
persons (as defined in the 1940 Act) of any such party, cast in person at a
meeting called for the purpose of voting on such approval.  The Agreement
provides that the Investment Adviser has no liability to the fund for its acts
or omissions in the performance of  its obligations to the fund not involving
willful misfeasance, bad faith, gross negligence or reckless disregard of  its
obligations under the Agreement. The Agreement also provides that either party
has the right to terminate it, without penalty, upon sixty (60) days' written
notice to the other party and that the Agreement automatically terminates in
the event of its assignment (as defined in the 1940 Act).
 
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the Principal
Underwriter) is the principal underwriter of the fund's shares.  The Principal
Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92821, 3500 Wiseman Boulevard, San
Antonio, TX 78251, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240
and 5300 Robin Hood Road, Norfolk, VA 23513.  The fund has adopted a Plan of
Distribution (the Plan), pursuant to rule 12b-1 under the 1940 Act (see
"Principal Underwriter" in the prospectus).  The Principal Underwriter receives
amounts payable pursuant to the Plan (described below) and commissions
consisting of that portion of the sales charge remaining after the discounts
which it allows to investment dealers.  Commissions retained by the Principal
Underwriter on sales of fund shares during the fiscal year ended April 30, 1999
amounted to $xx,xxx,000 after allowance of $xxx,xxx,000 to dealers including
$x,xxx,000 earned by Johnston, Lemon & Co. Incorporated on its retail sales of
shares and the Distribution Plan of the fund.  During the fiscal years ended
April 30, 1998 and 1997, the Principal Underwriter retained $38,821,000 and
$22,625,000, respectively.
    
As required by rule 12b-1, the Plan (together with the Principal Underwriting
Agreement) has been approved by the full Board of Directors and separately by a
majority of the Directors who are not "interested persons" of the fund and who
have no direct or indirect financial interest in the operation of the Plan or
the Principal Underwriting Agreement, and the Plan has been approved by the
vote of a majority of the outstanding voting securities of the fund.  The
officers and Directors who are "interested persons" of the fund may be
considered to have a direct or indirect financial interest in the operation of
the Plan.  Potential benefits of the Plan to the fund include improved
shareholder services, savings to the fund in transfer agency costs, savings to
the fund in advisory fees and other expenses, benefits to the investment
process from growth or stability of assets and maintenance of a financially
healthy management organization.  The selection and nomination of directors who
are not "interested persons" of the fund are committed to the discretion of the
directors who are not "interested persons" during the existence of the Plan. 
Expenses under the Plan are reviewed quarterly and the Plan must be considered
for renewal annually by the Board of Directors.
   
Under the Plan the fund may expend up to 0.25% of its average net assets
annually to finance any activity primarily intended to result in the sale of
fund shares, provided the fund's Board of Directors has approved the category
of expenses for which payment is being made.  The following categories of
expenses have been approved: service fees for qualified dealers; dealer
commissions and wholesaler compensation on no-load sales of shares (including
sales exceeding $1 million (including purchases by any employer-sponsored
403(b) plan, any defined contribution plan qualified under Section 401(a) of
the Internal Revenue Code including a 401(k) plan with 100 or more eligible
employees or a community foundation).
 
Commissions on sales of shares exceeding $1 million (including purchases by any
employer-sponsored 403(b) plan or purchases by any defined contribution plan
qualified under Section 401(a) of the Internal Revenue Code, including any
"401(k)" plan with 100 or more eligible employees) in excess of the Plan
limitation not reimbursed during the most recent fiscal quarter are recoverable
for five quarters, provided that such commissions do not exceed the annual
expense limit.  After five quarters, commissions are not recoverable.  During
the fiscal year ended April 30, 1999, the fund paid or accrued $xx,xxx,000
under the Plan, for compensation to dealers.  As of April 30, 1999,
distribution expenses accrued and unpaid amounted to $xx,xxx,000.
    
The Glass-Steagal Act and other applicable laws, among other things, generally
prohibit commercial banks from engaging in the business of underwriting,
selling or distributing securities, but permit banks to make shares of mutual
funds available to their customers and to perform administrative and
shareholder servicing functions.  However, judicial or administrative decisions
or interpretations of such laws, as well as changes in either federal or state
statutes or regulations relating to the permissible activities of banks or
their subsidiaries or affiliates, could prevent a bank from continuing to
perform all or a part of its servicing activities.  If a bank were prohibited
from so acting, shareholder clients of such bank would be permitted to remain
shareholders of the fund and alternate means of servicing such shareholders
would be sought.  In such event, changes in the operation of the fund might
occur and shareholders serviced by such bank might no longer be able to avail
themselves of any automatic investment or other services then being provided by
such bank.  It is not expected that shareholders would suffer adverse financial
consequences as a result of any of these occurrences.
 
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law. 
 
                   DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
 
The fund intends to meet all the requirements and has elected the tax status of
a "regulated investment company" under the provisions of Subchapter M of the
Internal Revenue Code of 1986 (the "Code").  Under Subchapter M, if the fund
distributes within specified times at least 90% of the investment company
income, it will be taxed only on the portion of the investment company taxable
income which it retains.
 
To qualify as a regulated investment company, the fund must (a) derive at least
90% of its gross income from dividends, interest, certain payments with respect
to securities loans and gains from the sale or other disposition of stock or
securities or other income derived with respect to its business of investing in
such stock or securities; and (b) diversify its holdings so that at the end of
each fiscal quarter, (i) at least 50% of the market value of the fund's assets
is represented by cash, U.S. Government securities and other securities which
must be limited, in respect of any one issuer, to an amount not greater than 5%
of the fund's assets and 10% of the outstanding voting securities of such
issuer, and (ii) not more than 25% of the value of its assets is invested in
the securities of any one issuer.
 
Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year.  The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gain net income (both long-term and
short-term) for the one-year period ending on October 31 (as though the
one-year period ending on October 31 were the regulated investment company's
taxable year), and (iii) the sum of any untaxed, undistributed net investment
income and capital gain net income of the regulated investment company for
prior periods.  The term "distributed amount" generally means the sum of (i)
amounts actually distributed by the fund from its current year's ordinary
income and capital gain net income and (ii) any amount on which the fund pays
income tax during the periods described above.  The fund intends, to the extent
practicable, to meet these distribution requirements to minimize or avoid the
excise tax liability.
 
The fund intends to distribute to shareholders all of its capital gain net
income.  If the net asset value of shares of the fund should, by reason of a
distribution of realized capital gains, be reduced below a shareholder's cost,
such distribution would to that extent be taxable to the shareholder even
though it is a return of capital to that shareholder, and a sale of shares by a
shareholder at net asset value at that time would establish a capital loss for
federal tax purposes.  In particular, investors should consider the tax
implications of purchasing shares just prior to a dividend or distribution
record date.  Those investors purchasing shares just prior to such a date will
then receive a partial return of capital upon the dividend or distribution,
which will nevertheless be taxable to them as an ordinary or capital gains
dividend.
 
Corporate shareholders of the fund may be eligible for the dividends-received
deduction on the dividends (excluding the net capital gains dividends) paid by
the fund to the extent that the fund's income is derived from dividends (which,
if received directly, would qualify for such deduction) received from domestic
corporations.  In order to quality for the dividends-received deduction, a
corporate shareholder must hold the fund shares paying the dividends upon which
the deduction is based for at least 46 days. 
 
Dividends generally are taxable to shareholders at the time they are paid. 
However, dividends declared payable as of a date in October, November and
December are deemed under the Code to have been received by the shareholder on
December 31 of that calendar year and subject to income tax for that year even
though the dividend is actually paid no later than the following January.  
Under the Code, if, within 90 days after fund shares are purchased, such shares
are redeemed and either reinstated in the same fund or exchanged for shares of
any other fund in The American Funds Group and the otherwise applicable sales
charge is waived, then the amount of the sales charge previously incurred in
purchasing Fund shares shall not be taken into account for purposes of
determining the amount of any gain or loss on the redemption, but will be
treated as having been incurred in the purchase of the fund shares acquired in
the reinstatement or exchange.
 
The tax status of a gain realized on a redemption will not be affected by
exercise of the reinstatement privilege, but a loss may be nullified if you
reinvest in the same fund within 30 days.
 
Under the Code, distributions of net investment income by the fund to a
shareholder who, as to the U.S., is a nonresident alien individual, nonresident
alien fiduciary of a trust or estate, foreign corporation or foreign
partnership (a "foreign shareholder") will be subject to U.S. withholding tax
(at a rate of 30% or lower treaty rate).  Withholding will not apply if a
dividend paid by the fund to a non-U.S. shareholder is "effectively connected"
with a U.S. trade or business, in which case the reporting and withholding
requirements applicable to U.S. citizens, U.S. residents or domestic
corporations will apply.  However, if the distribution is effectively connected
with the conduct of the non-U.S. shareholder's trade or business within the
U.S., the distribution would be included in the net income of the shareholder
and subject to U.S. income tax at the applicable marginal rate.  Distributions
of long-term capital gains not effectively connected with a U.S. trade or
business are not subject to the withholding, but if the non-U.S. shareholder
was an individual who was physically present in the U.S. during the tax year
for more than 182 days and such shareholder is nonetheless treated as a
nonresident alien, the distributions would be subject to a 30% tax. 
   
As of the date of this statement of additional information, the maximum federal
individual stated tax rate applicable to ordinary income is 39.6% (effective
tax rates may be higher for some individuals due to phase out of exemptions and
elimination of deductions); the maximum individual tax rate applicable to net
capital gains on assets held more than one year is 20%; and the maximum
corporate tax applicable to ordinary income and net capital gain is 35%. 
However, to eliminate the benefit of lower marginal corporate income tax rates,
corporations which have income in excess of $100,000 for a taxable year will be
required to pay an additional income tax liability of up to $11,750 and
corporations which have taxable income in excess of $15,000,000 for a taxable
year will be required to pay an additional amount of tax of up to $100,000. 
Naturally, the amount of tax payable by an individual will be affected by a
combination of tax law rules covering, E.G., deductions, credits, deferrals,
exemptions, sources of income and other matters.  Under the Code, an individual
is entitled to establish an Individual Retirement Account ("IRA") each year
(prior to the tax return filing deadline for that year) whereby earnings on
investments are tax-deferred.  The maximum amount that an individual may
contribute to all IRA's (deductible, nondeductible and Roth IRA's) per year is
the lesser of $2,000 or the individual's compensation for the year.  In some
cases, the IRA contribution itself may be deductible.
    
The foregoing is limited to a summary discussion of federal taxation and should
not be viewed as a comprehensive discussion of all provisions of the Code
relevant to investors.  Dividends and capital gain distributions may also be
subject to state or local taxes.  Shareholders should consult their own tax
advisers for additional details as to their particular tax  situations.
 
                               PURCHASE OF SHARES
 
<TABLE>
<CAPTION>
<S>              <C>                         <C>                                
METHOD           INITIAL INVESTMENT          ADDITIONAL INVESTMENTS             
 
                 See "Investment Minimums and   $50 minimum (except where a lower   
                 Fund Numbers" for initial   minimum is noted under "Investment   
                 investment minimums.        Minimums and Fund Numbers").       
 
By contacting    Visit any investment dealer who is   Mail directly to your investment dealer's address   
your investment   registered in the state where the   printed on your account statement.   
dealer           purchase is made and who has a                                      
                 sales agreement with American                                      
                 Funds Distributors.                                            
 
By mail          Make your check payable to the fund and mail to the address indicated on the account application.  Please indicate
an investment dealer on the account application.   Fill out the account additions form at the   
                                             bottom of a recent account statement, make your check payable to the fund, write your
account number on your check, and mail the check and form in the envelope provided with your account statement.   
 
By telephone     Please contact your investment dealer to open account, then follow the procedures for additional investments.  
Complete the "Investments by Phone"   
                                             section on the account application or   
                                             American FundsLink Authorization Form.    
                                             Once you establish the privilege, you, your financial advisor or any person with your
account information can call American FundsLineR and make investments by telephone (subject to conditions noted in "Shareholder
Account Services and Privileges -    
                                             Telephone and                      
                                             Computer Purchase, Redemptions and    
                                             Exchanges" below).                 
 
By computer      Please contact your investment   Complete the American FundsLink    
                 dealer to open account, then follow   Authorization Form.  Once you've established   
                 the procedures for additional   the privilege, you, your financial adviser   
                 investments.                or any person with your account information   
                                             may access American FundsLine OnLine/SM/ on   
                                             the Internet and make investments by computer   
                                             (subject to conditions noted in "Telephone and   
                                             Computer Purchases, Redemptions and   
                                             Exchanges" below).                 
 
By wire          Call 800/421-0180 to obtain   Your bank should wire your additional   
                 your account number(s), if   investments in the same manner as   
                 necessary.  Please indicate an   described under "Initial Investment."   
                 investment dealer on the                                       
                 account.  Instruct your bank to                                      
                 wire funds to:                                                 
                 Wells Fargo Bank                                               
                 155 Fifth Street                                               
                 Sixth Floor                                                    
                 San Francisco, CA 94106                                        
                 (ABA #121000248)                                               
                 For credit to the account of:                                      
                 American Funds Service                                         
                 Company                                                        
                 a/c #4600-076178                                               
                 (fund name)                                                    
                 (your fund acct. no.)                                          
 
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER.                                           
                      
 
</TABLE>
 
INVESTMENT MINIMUMS AND FUND NUMBERS - Here are the minimum initial investments
required by the funds in The American Funds Group along with fund numbers for
use with our automated phone line, American FundsLineR (see description below):
 
<TABLE>
<CAPTION>
<S>                                          <C>                     <C>         
FUND                                         MINIMUM                 FUND        
                                             INITIAL                 NUMBER      
                                             INVESTMENT                          
 
STOCK AND STOCK/BOND FUNDS                                                       
 
AMCAP FundR                                                          02          
                                             $1,000                              
 
American Balanced FundR                                              11          
                                             500                                 
 
American Mutual FundR                                                03          
                                             250                                 
 
Capital Income BuilderR                                              12          
                                             1,000                               
 
Capital World Growth and Income Fund$                                33          
                                             1,000                               
 
EuroPacific Growth FundR                                             16          
                                             250                                 
 
Fundamental Investors$                                               10          
                                             250                                 
 
The Growth Fund of AmericaR                                          05          
                                             1,000                               
 
The Income Fund of AmericaR                                          06          
                                             1,000                               
 
The Investment Company of AmericaR                                   04          
                                             250                                 
 
The New Economy FundR                                                14          
                                             1,000                               
 
New Perspective FundR                                                07          
                                             250                                 
 
SMALLCAP World FundR                                                 35          
                                             1,000                               
 
Washington Mutual Investors Fund$                                    01          
                                             250                                 
 
BOND FUNDS                                                                       
 
American High-Income Municipal Bond FundR                            40          
                                             1,000                               
 
American High-Income Trust$                                          21          
                                             1,000                               
 
The Bond Fund of America$                                            08          
                                             1,000                               
 
Capital World Bond FundR                                             31          
                                             1,000                               
 
Intermediate Bond Fund of America$                                   23          
                                             1,000                               
 
Limited Term Tax-Exempt Bond Fund of America$                            43          
                                             1,000                               
 
The Tax-Exempt Bond Fund of AmericaR                                 19          
                                             1,000                               
 
The Tax-Exempt Fund of CaliforniaR*                                  20          
                                             1,000                               
 
The Tax-Exempt Fund of MarylandR*                                    24          
                                             1,000                               
 
The Tax-Exempt Fund of VirginiaR*                                    25          
                                             1,000                               
 
U.S. Government Securities Fund$                                     22          
                                             1,000                               
 
MONEY MARKET FUNDS                                                               
 
The Cash Management Trust of AmericaR                                09          
                                             2,500                               
 
The Tax-Exempt Money Fund of America$                                39          
                                             2,500                               
 
The U.S. Treasury Money Fund of America$                             49          
                                             2,500                               
 
___________                                                                      
*Available only in certain states.                                               
 
</TABLE>
 
 
For retirement plan investments, the minimum is $250, except that the money
market funds have a minimum of $1,000 for IRAs.  Minimums are reduced to $50
for purchases through "Automatic Investment Plans" (except for the money market
funds) or to $25 for purchases by retirement plans through payroll deductions
and may be reduced or waived for shareholders of other funds in The American
Funds Group.  TAX-EXEMPT FUNDS SHOULD NOT SERVE AS RETIREMENT PLAN INVESTMENTS. 
The minimum is $50 for additional investments (except as noted above).
SALES CHARGES - The sales charges you pay when purchasing the stock,
stock/bond, and bond funds of The American Funds Group are set forth below. 
The money market funds of The American Funds Group are offered at net asset
value.  (See "Investment Minimums and Fund Numbers" for a listing of the
funds.)
 
<TABLE>
<CAPTION>
<S>                              <C>              <C>              <C>              
AMOUNT OF PURCHASE               SALES CHARGE AS                    DEALER           
AT THE OFFERING PRICE            PERCENTAGE OF THE:                    CONCESSION       
                                                                   AS PERCENTAGE    
                                                                   OF THE           
                                                                   OFFERING         
                                                                   PRICE            
 
                                 NET AMOUNT       OFFERING                          
                                 INVESTED         PRICE                             
 
STOCK AND STOCK/BOND FUNDS                                                          
 
Less than $50,000                                                                   
                                 6.10%            5.75%            5.00%            
 
$50,000 but less than $100,000                                                       
                                 4.71             4.50             3.75             
 
BOND FUNDS                                                                          
 
Less than $25,000                                                                   
                                 4.99             4.75             4.00             
 
$25,000 but less than $50,000                                                       
                                 4.71             4.50             3.75             
 
$50,000 but less than $100,000                                                       
                                 4.17             4.00             3.25             
 
STOCK, STOCK/BOND, AND BOND FUNDS                                                      
 
$100,000 but less than $250,000                                                       
                                 3.63             3.50             2.75             
 
$250,000 but less than $500,000                                                       
                                 2.56             2.50             2.00             
 
$500,000 but less than $1,000,000                                                       
                                 2.04             2.00             1.60             
 
$1,000,000 or more                                                 (see below)      
                                 none             none             PURCHASES NOT SUBJECT  TO SALES CHARGES -- Investment of $1
million or more and investments made by    
                                                                   employer-sponsored defined contribution-type plans with 100 or
more eligible employees are sold with no    
                                                                   initial sales charge.  A contingent deferred sales charge may be
imposed on certain redemptions by these    
                                                                   accounts made within one year of purchases.  Investments by
retirement plans, foundations or endowments    
                                                                   with $50 million or more in assets, and employer-sponsored
defined contribution-type plans with 100 or more    
                                                                   eligible employees made with no sales charge are not subject to a
contingent deferred sales charge.   
 
</TABLE>
 
 
In addition, the stock, stock/bond and bond funds may sell shares at net asset
value to: 
 
(1) current or retired directors, trustees, officers and advisory board members
of the funds managed by Capital Research and Management Company, employees of
Washington Management Corporation, employees and partners of The Capital Group
Companies, Inc. and its affiliated companies, certain family members of the
above persons, and trusts or plans primarily for such persons; 
 
(2) current registered representatives, retired registered representatives with
respect to accounts established while active, or full-time employees (and their
spouses, parents, and children) of dealers who have sales agreements with
American Funds Distributors (or who clear transactions through such dealers)
and plans for such persons or the dealers;
 
(3) companies exchanging securities with the fund through a merger, acquisition
or exchange offer; 
 
(4) trustees or other fiduciaries purchasing shares for certain retirement
plans of organizations with retirement plan assets of $50 million or more; 
 
(5) insurance company separate accounts; 
 
(6) accounts managed by subsidiaries of The Capital Group Companies, Inc.; and 
 
(7) The Capital Group Companies, Inc., its affiliated companies and Washington
Management Corporation. 
 
Shares are offered at net asset value to these persons and organizations due to
anticipated economies in sales effort and expense. 
   
DEALER COMMISSIONS -- Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revue Code including a
"401(k)" plan with 100 or more eligible employees, and for purchases  made at
net asset value by certain retirement plans of organizations with collective
retirement plan assets of $50 million or more: 1.00% on amounts of $1 million
to $4 million, 0.50% on amounts over $4 million to $10 million, and 0.25% on
amounts over $10 million. For certain tax-exempt accounts open prior to
September 1, 1969, sales charges and dealer commissions, as a percent of
offering price, are respectively 3% and 2.5% (under $50,000); 2.5% and 2.0%
($50,000 but less than $100,000); 2.0% and 1.5% ($100,000 but less than
$250,000) and 1.5% and 1.25% ($250,000 but less than $1 million).
 
OTHER COMPENSATION TO DEALERS --  American Funds Distributors, at its expense
(from a designated percentage of its income), currently provides additional
compensation to dealers. Currently these payments are limited to the top 100
dealers who have sold shares of the fund or other funds in The American Funds
Group. These payments will be based principally on a pro rata share of a
qualifying dealer's sales. American Funds Distributors will, on an annual
basis, determine the advisability of continuing these payments. 
Qualified dealers currently are paid a continuing service fee not to exceed
0.25% of average net assets (0.15% in the case of the money market funds)
annually in order to promote selling efforts and to compensate them for
providing certain services.  These services include processing purchase and
redemption transactions, establishing shareholder accounts and providing
certain information and assistance with respect to the fund.
 
STATEMENT OF INTENTION - You may enter into a non-binding commitment to
purchase shares of a fund(s) over a 13-month period and receive the same sales
charge as if all shares had been purchased at once.  This includes purchases
made during the previous 90 days, but does not include appreciation of your
investment or reinvested distributions.  The reduced sales charges and offering
prices set forth in the Prospectus apply to purchases of $50,000 or more made
within a 13-month period subject to a statement of intention (the "Statement"). 
The Statement is not a binding obligation to purchase the indicated amount. 
When a shareholder elects to utilize a Statement in order to qualify for a
reduced sales charge, shares equal to 5% of the dollar amount specified in the
Statement will be held in escrow in the shareholder's account out of the
initial purchase (or subsequent purchases, if necessary) by the Transfer Agent. 
All dividends and any capital gain distributions on shares held in escrow will
be credited to the shareholder's account in shares (or paid in cash, if
requested).  If the intended investment is not completed within the specified
13-month period, the purchaser will remit to the Principal Underwriter the
difference between the sales charge actually paid and the sales charge which
would have been paid if the total of such purchases had been made at a single
time.  If the difference is not paid within 45 days after written request by
the Principal Underwriter or the securities dealer, the appropriate number of
shares held in escrow will be redeemed to pay such difference.  If the proceeds
from this redemption are inadequate, the purchaser will be liable to the
Principal Underwriter for the balance still outstanding.  The Statement may be
revised upward at any time during the 13-month period, and such a revision will
be treated as a new Statement, except that the 13-month period during which the
purchase must be made will remain unchanged and there will be no retroactive
reduction of the sales charges paid on prior purchases.  Existing holdings
eligible for rights of accumulation (see the prospectus and account
application) may be credited toward satisfying the Statement.  During the
Statement period reinvested dividends and capital gain distributions,
investments in money market funds, and investments made under a right of
reinstatement will not be credited toward satisfying the Statement.
When the trustees of certain retirement plans by payroll deduction, the sales
charge for the investments made during the 13-month period will be handled as
follows:  The regular monthly payroll deduction investment will be multiplied
by 13 and then multiplied by 1.5.  The current value of existing American Funds
investments (other than money market fund investments) and any rollovers or
transfers reasonably anticipated to be invested in non-money market American
Funds during the 13-month period are added to the figure determined above.  The
sum is the Statement amount and applicable breakpoint level.  On the first
investment and all other investments made pursuant to the Statement, a sales
charge will be assessed according to the sales charge breakpoint thus
determined.  There will be no retroactive adjustments in sales charges on
investments previously made during the 13-month period.
    
Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms with their first purchase.
 
AGGREGATION - Sales charge discounts are available for certain aggregated
investments. Qualifying investments include those by you, your spouse and your
children under the age of 21, if all parties are purchasing shares for their
own account(s), which may include purchases through employee benefit plan(s)
such as an IRA, individual-type 403(b) plan or single-participant Keogh-type
plan or by a business solely controlled by these individuals (for example, the
individuals own the entire business) or by a trust (or other fiduciary
arrangement) solely for the benefit of these individuals. Individual purchases
by a trustee(s) or other fiduciary(ies) may also be aggregated if the
investments are (1) for a single trust estate or fiduciary account, including
an employee benefit plan other than those described above, or (2) made for two
or more employee benefit plans of a single employer or of affiliated employers
as defined in the Investment Company Act of 1940, again excluding employee
benefit plans described above, or (3) for a diversified common trust fund or
other diversified pooled account not specifically formed for the purpose of
accumulating fund shares. Purchases made for nominee or street name accounts
(securities held in the name of an investment dealer or another nominee such as
a bank trust department instead of the customer) may not be aggregated with
those made for other accounts and may not be aggregated with other nominee or
street name accounts unless otherwise qualified as described above.
   
CONCURRENT PURCHASES - You may combine purchases of two or more funds in The
American Funds Group, except direct purchases of the money market funds. 
Shares of money market funds purchased through an exchange, reinvestment or
cross-reinvestment from a fund having a sales charge do qualify.
 
RIGHT OF ACCUMULATION - You may take into account the current value of your
existing holdings in The American Funds Group, as well as your holdings in
Endowments (shares of which may be owned only by tax-exempt organizations), to
determine your sales charge on investments in accounts eligible to be
aggregated, or when making a gift to an individual or charity.  Direct
purchases of the money market funds are excluded.
 
PRICE OF SHARES - Shares are purchased at the offering price next determined
after the purchase order is received and accepted by the fund or American Funds
Service Company; this offering price is effective for orders received prior to
the time of determination of the net asset value and, in the case of orders
placed with dealers, accepted by the Principal Underwriter prior to its close
of business.  In case of orders sent directly to the fund or the Transfer
Agent, an investment dealer MUST be indicated.  The dealer is responsible for
promptly transmitting purchase orders to the Principal Underwriter.  Orders
received by the investment dealer, the Transfer Agent, or the fund after the
time of the determination of the net asset value will be entered at the next
calculated offering price.  Prices which appear in the newspaper are not always
indicative of prices at which you will be purchasing and redeeming shares of
the fund, since such prices generally reflect the previous day's closing price
whereas purchases and redemptions are made at the next calculated price.
The price you pay for shares, the offering price, is based on the net asset
value per share which is calculated once daily at 4:00 p.m., New York Time each
day the New York Stock Exchange is open.  For example, if the Exchange closes
at 1:00 p.m. on one day and 4:00 p.m. on the next day, the fund's share price
would be determined as of 4:00 p.m. New York time on both days.  The New York
Stock Exchange is currently closed on weekends and on the following holidays: 
New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. All
portfolio securities of funds advised by Capital Research and Management
Company (other than money market funds) are valued, and the net asset value per
share is determined as follows:
    
     1.  Equity securities, including depositary receipts, are valued at the
last reported sale price on the exchange or market on which such securities are
traded, as of the close of business on the day the securities are being valued
or, lacking any sales, at the last available bid price.  In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the Investment Adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market.  Fixed-income securities are valued at prices
obtained from a pricing service, when such prices are available; however, in
circumstances where the Investment Adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type. 
 
     Securities with original maturities of one year or less having 60 days or
less to maturity are amortized to maturity based on their cost if acquired
within 60 days of maturity or, if already held on the 60th day, based on the
value determined on the 61st day.  Forward currency contracts are valued at the
mean of representative quoted bid and asked prices.
 
     Assets or liabilities initially expressed in terms of foreign currencies
are translated prior to the next determination of the net asset value of the
fund's shares into U.S. dollars at the prevailing market rates.  
     Securities and assets 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; The fair value of all other assets is
added to the value of securities to arrive at the total assets;
 
     2.  Liabilities, including accruals of taxes and other expense items, are
deducted from total assets; and
 
     3.  Net assets so obtained are then divided by the total number of shares
outstanding, and the result, rounded to the nearer cent, is the net asset value
per share.
 
Any purchase order may be rejected by the Principal Underwriter or by the fund. 
The Principal Underwriter will not knowingly sell shares (other than for the
reinvestment of dividends or capital gain distributions) directly or indirectly
or through a unit investment trust to any other investment company, person or
entity, where, after the sale, such investment company, person, or entity would
own beneficially directly, indirectly, or through a unit investment trust more
than 3% of the outstanding shares of the fund without the consent of a majority
of the fund's Board of Directors.
   
                                 SELLING SHARES
 
Shares are sold at the net asset value next determined after your request is
received in good order by American Funds Service Company.  You may sell
(redeem) shares in your account in any of the following ways:
 
 THROUGH YOUR DEALER (certain charges may apply)
- - Shares held for you in your dealer's street name must be sold through the
dealer.
 
 WRITING TO AMERICAN FUNDS SERVICE COMPANY
- - Requests must be signed by the registered shareholder(s)
- - A signature guarantee is required if the redemption is:
  -- Over $50,000;
  -- Made payable to someone other than the registered shareholder(s); or
- -- Sent to an address other than the address of record, or an address of record
which has been changed within the last 10 days.
 
Your signature may be guaranteed by a domestic stock exchange or the National
Association of Securities Dealers, Inc., bank, savings association or credit
union that is an eligible guarantor institution. 
- - Additional documentation may be required for sales of shares held in
corporate, partnership or  fiduciary accounts.
- - You must include any shares you wish to sell that are in certificate form.
TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE OR AMERICAN FUNDSLINE ONLINE/SM/
 
- - Redemptions by telephone or fax (including American FundsLine and American
FundsLine OnLine) are limited to $50,000 per shareholder each day.
- - Checks must be made payable to the registered shareholder(s).
- - Checks must be mailed to an address of record that has been used with the
account for at least 10 days.
 
 MONEY MARKET FUNDS
 
- - You may have redemptions of $1,000 or more wired to your bank by writing
American Funds Service Company.
- - You may establish check writing privileges (use the money market funds
application)
- -- If you request check writing privileges, you will be provided with checks
that you may use to draw against your account.  These checks may be made
payable to anyone you designate and must be signed by the authorized number or
registered shareholders exactly as indicated on your checking account signature
card.
Redemption proceeds will not be mailed until sufficient time has passed to
provide reasonable assurance that checks or drafts (including certified or
cashier's checks) for shares purchased have cleared (which may take up to 15
calendar days from the purchase date).  Except for delays relating to clearance
of checks for share purchases or in extraordinary circumstances (and as
permissible under the Investment Company Act of 1940), sale proceeds will be
paid on or before the seventh day following receipt and acceptance of an order. 
Interest will not accrue or be paid on amounts that represent uncashed
distribution or redemption checks.
 
 
You may reinvest proceeds from a redemption or a dividend or capital gain
distribution without a sales charge (any contingent deferred sales charge paid
will be credited to your account) in any fund in The American Funds Group
within 90 days after the date of the redemption or distribution.  Redemption
proceeds of shares representing direct purchases in the money market funds are
excluded.  Proceeds will be reinvested at the next calculated net asset value
after your request is received and accepted by American Funds Service Company.
 
CONTINGENT DEFERRED SALES CHARGE - A contingent deferred sales charge of 1%
applies to certain redemptions made within twelve months of purchase on
investments of $1 million or more (other than redemptions by employer-sponsored
retirement plans). The charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital gain distributions) or
the total cost of such shares.  Shares held for the longest period are assumed
to be redeemed first for purposes of calculating this charge.  The charge is
waived for exchanges (except if shares acquired by exchange were then redeemed
within 12 months of the initial purchase); for distributions from 403(b) plans
or IRAs due to death, disability or attainment of age 59$; for tax-free returns
of excess contributions to IRAs; and for redemptions through certain automatic
withdrawals not exceeding 10% of the amount that would otherwise be subject to
the charge.
    
REDEMPTION OF SHARES - The Transfer Agent may redeem the shares of any
shareholder if the shares owned by such shareholder through redemptions, market
decline or otherwise, have a value of less than the minimum initial investment
amount required of new shareholders, (determined, for this purpose only as the
greater of the shareholder's cost or current net asset value of the shares,
including any shares acquired through reinvestment of income dividends and
capital gains distributions).  Prior notice of at least 60 days will be given
to a shareholder before the involuntary redemption provision is made effective
with respect to the shareholder's account .  The shareholder will have not less
than 30 days from the date of such notice within which to bring the account up
to the minimum determined as set forth above.
 
The Fund's Articles of Incorporation permit the Fund to direct the Transfer
Agent to redeem the shares of any shareholder if the value of shares in the
account is less than the minimum initial investment amount set forth in the
Fund's current registration statement under the 1940 Act, subject to such
further terms and conditions as the Board of Directors may adopt.  Prior notice
of at least 60 days will be given to a shareholder before the involuntary
redemption provision is made effective with respect to the shareholder's
account to provide the shareholder with an opportunity to bring the account up
to the minimum.
 
                  SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
   
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables shareholders 
to make regular investments monthly or quarterly in shares through automatic
charges to their bank accounts.  With shareholder authorization and bank
approval, the Transfer Agent will automatically charge the bank account for the
amount specified ($50 minimum) and the date on which you would like your
reinvestments to occur.  The plan will begin within 30 days after your account
application is received. Your bank account will be debited on the day or a few
days before investments are credited, depending on the bank's capabilities. 
Your bank account cannot be charged due to insufficient funds, a stop-payment
order or closing of the account, the plan may be terminated and the related
investment reversed.  You may change the amount of the investment or
discontinue the plan at any time by writing to the Transfer Agent.
 
AUTOMATIC REINVESTMENT  - Dividends and capital gain distributions are
reinvested in additional shares at no sales charge unless you indicate
otherwise on the account application.  You also may elect to have dividends
and/or capital gain distributions paid in cash by informing the fund, American
Funds Service Company or your investment dealer.
 
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS -- You may cross-reinvest
dividends and capital gains ("distributions") into any other fund in The
American Funds Group at net asset value, subject to the following conditions:
 
(a) The aggregate value of your account(s) in the fund(s) paying distributions
equals or exceeds $5,000 (this is waived if the value of the account in the
fund receiving the distributions equals or exceeds that fund's minimum initial
investment requirement),
 
(b) If the value of the account of the fund receiving distributions is below
the minimum initial investment requirement, distributions must be automatically
reinvested,
 
(c) If you discontinue the cross-reinvestment of distributions, the value of
the account of the fund receiving distribution must equal or exceed the minimum
initial investment requirement.  If you do not meet this requirement within 90
days of notification, the fund has the right to automatically redeem the
account.
    
EXCHANGE PRIVILEGE - You may exchange shares into other funds in The American
Funds Group. Exchange purchases are subject to the minimum investment
requirements of the fund purchased and no sales charge generally applies.
However, exchanges of shares from the money market funds are subject to
applicable sales charges on the fund being purchased, unless the money market
fund shares were acquired by an exchange from a fund having a sales charge, or
by reinvestment or cross-reinvestment of dividends or capital gain 
distributions.
 
You may exchange shares by writing to American Funds Service Company (see 
"Selling Shares"), by contacting your investment dealer, by using American
FundsLineR and American FundsLine OnLine/SM/ (see "American FundsLineR and
American FundsLine OnLine/SM/" below), or by telephoning 800/421-0180
toll-free, faxing (see "Principal Underwriter and Transfer Agent"  in the
prospectus for the appropriate fax numbers) or telegraphing American Funds
Service Company. (See "Telephone and Computer Purchases, Redemptions and
Exchanges" below.) Shares held in corporate-type retirement plans for which
Capital Guardian Trust Company serves as trustee may not be exchanged by
telephone, computer,  fax or telegraph. Exchange redemptions and purchases are
processed simultaneously at the share prices next determined after the exchange
order is received. (See "Purchase of Shares--Price of Shares.") THESE
TRANSACTIONS HAVE THE SAME TAX CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES - You may automatically exchange shares (in amounts of $50
or more) among any of the funds in The American Funds Group on any day (or
preceding business day if the day falls on a non-business day) of each month
you designate. You must either (a) meet the minimum initial investment
requirement for the receiving fund OR (b) the originating fund's balance must
be at least $5,000 and the receiving fund's minimum must be met within one
year.
 
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income.  Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals.  Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account.  The
Transfer Agent arranges for the redemption by the Fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
 
ACCOUNT STATEMENTS - Your account is opened in accordance with your
registration instructions. Transactions in the account, such as additional
investments and dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service Company. Purchases through
automatic investment plans and certain retirement plans will be confirmed at
least quarterly.
 
AMERICAN FUNDSLINER AND AMERICAN FUNDSLINE ONLINE/SM/- YOU MAY CHECK YOUR SHARE
BALANCE, THE PRICE OF YOUR SHARES, OR YOUR MOST RECENT ACCOUNT TRANSACTION,
SELL SHARES (UP TO $50,000 PER SHAREHOLDER, PER DAY), OR EXCHANGE SHARES AROUND
THE CLOCK WITH AMERICAN FUNDSLINER and American FundsLine OnLine/SM/. To use
this service, call 800/325-3590 from a TouchTonet telephone or access the
American Funds Web site on the Internet at www.americanfunds.com.  Redemptions
and exchanges through American FundsLineR and American FundsLine OnLine/SM/ are
subject to the conditions noted above and in "Telephone and Computer
Redemptions and Exchanges" below. You will need your fund number (see the list
of funds in The American Funds Group under "Purchase of Shares--Investment
Minimums and Fund Numbers"), personal identification number (the last four
digits of your Social Security number or other tax identification number
associated with your account) and account number.
 
TELEPHONE AND COMPUTER PURCHASES, REDEMPTIONS AND EXCHANGES - By using the
telephone (including American FundsLineR and American FundsLine OnLine/SM/),
fax or telegraph redemption and/or exchange options, you agree to hold the
fund, American Funds Service Company, any of its affiliates or mutual funds
managed by such affiliates, the Fund's Business Manager and each of their
respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liability (including attorney fees) which may be
incurred in connection with the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these options. However, you may
elect to opt out of these options by writing American Funds Service Company
(you may also reinstate them at any time by writing American Funds Service
Company). If American Funds Service Company does not employ reasonable
procedures to confirm that the instructions received from any person with
appropriate account information are genuine, it and/or the fund may be liable
for losses due to unauthorized or fraudulent instructions. In the event that
shareholders are unable to reach the fund by telephone because of technical
difficulties, market conditions, or a natural disaster, redemption and exchange
requests may be made in writing only.
   
SHARE CERTIFICATES - Shares are credited to your account and certificates are
not issued unless you request them by writing to the Transfer Agent.
    
                      EXECUTION OF PORTFOLIO TRANSACTIONS
   
Orders for the fund's portfolio securities transactions are placed by the
Investment Adviser.  The Investment Adviser strives to obtain the best
available prices in its portfolio transactions taking into account the costs
and promptness of executions. Fixed-income securities are generally traded on a
"net" basis with a dealer acting as principal for its own account without a
stated commission, although the price of the security usually includes a profit
to the dealer. In underwritten offerings, securities are usually purchased at a
fixed price which includes an amount of compensation to the dealer, generally
referred to as a concession or discount.  On occasion, securities may be
purchased directly from an issuer, in which case no commissions or discounts
are paid.  In the over-the-counter market, purchases and sales are transacted
directly with principal market-makers except in those circumstances where it
appears better prices and executions are available elsewhere.
 
When circumstances relating to a proposed transaction indicate that a
particular broker (either directly or through their correspondent clearing
agents) is in a position to obtain the best price and execution, the order is
placed with that broker.  This may or may not be a broker who has provided
investment research, statistical, or other related services to the Investment
Adviser or has sold shares of the funds or other funds served by the Investment
Adviser.  The fund does not consider that they have an obligation to obtain the
lowest available commission rate to the exclusion of price, service and
qualitative considerations.
 
Subject to the above policy, when two or more brokers (either directly or
through their correspondent clearing agents) are in a position to offer
comparable prices and executions, preference may be given to brokers who have
sold shares of the funds or have provided investment research, statistical, and
other related services for the fund and or other funds served by the Investment
Adviser.
 
There are occasions on which portfolio transactions for the fund may be
executed as part of concurrent authorizations to purchase or sell the same
security for other funds served by the Investment Adviser, or for trusts or
other accounts served by affiliated companies of the Investment Adviser. 
Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to the fund, they are effected only when the
Investment Adviser believes that to do so is in the interest of the fund.  When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner.  The fund will not pay a mark-up for
research in principal transactions.
 
As of the end of the fund's most recent fiscal year, it held certain equity
securities of some of its regular brokers and dealers or their parents that
derive more than 15% of gross revenues from securities-related activities which
included securities of The Chase Manhattan Bank and J.P. Morgan in the amounts
of $xxx,xxx,000 and $xxx,xxx,000, respectively, at the year ended April 30,
1999.
 
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the fiscal years ended April 30, 1999, 1998
and 1997 amounted to $xx,xxx,xxx, $18,302,000 and $14,511,000, respectively.
During fiscal years 1999, 1998 and 1997 Johnston, Lemon & Co. Incorporated
received no commissions for executing portfolio transactions for the fund. 
Johnston, Lemon & Co. Incorporated will not participate in commissions paid by
the fund to other brokers or dealers and will not receive any reciprocal
business, directly or indirectly, as a result of such commissions.
    
                              GENERAL INFORMATION
 
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by The Chase Manhattan Bank,  3 Metrotech Center, Brooklyn, NY 11245,
as Custodian.  
   
TRANSFER AGENT - American Funds Service Company, a wholly owned subsidiary of
the Investment Adviser, maintains the record of each shareholder's account,
processes purchases and redemptions of the fund's shares, acts as dividend and
capital gain distribution disbursing agent, and performs other related
shareholder service functions.    American Funds Service Company was paid a fee
of $xx,xxx,000 for the fiscal year ended April 30, 1999.
 
INDEPENDENT ACCOUNTANTS - PricewaterhouseCoopers LLP, 400 South Hope Street,
Los Angeles, CA  90071, has served as the fund's independent accountants since
its inception, providing audit services, preparation of tax returns and review
of certain documents to be filed with the Securities and Exchange Commission. 
The financial statements included in this Statement of Additional Information,
have been so included in reliance on the report of PricewaterhouseCoopers LLP
given on the authority of said firm as experts in accounting and auditing.  The
selection of the fund's independent accountant is reviewed and determined
annually by the Board of Directors.  
 
REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on April 30. 
Shareholders are provided at least semi-annually with reports containing the
financial statements, including the investment portfolio and other information. 
The fund's annual financial statements are audited by the fund's independent
accountants, PricewaterhouseCoopers LLP.  In an effort to reduce the volume of
mail shareholders receive from the fund when a household owns more than one
account, the Transfer Agent has taken steps to eliminate duplicate mailings of
shareholder reports.  To receive additional copies of a report shareholders
should contact the Transfer Agent.
    
YEAR 2000 - The fund and its shareholders depend on the proper functioning of
computer systems maintained by the Investment Adviser and its affiliates and
other key service providers.  Many computer systems in use today will require
reprogramming or replacement prior to the year 2000 because of the way they
store dates and make date-related calculations.  The fund understands that
these service providers are taking steps to address the "Year 2000 problem". 
However, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the fund.  In addition, the fund's investments could be
adversely affected by the Year 2000 problem.  For example, the markets for
securities in which the fund invests could experience settlement problems and
liquidity issues.  Corporate and government data processing errors may cause
losses for individual companies and overall economic uncertainties.  Earnings
of individual issuers are likely to be affected by the costs of addressing the
problem, which may be substantial and may be reported inconsistently.
 
PERSONAL INVESTING POLICY - Capital Research and Management Company and its
affiliated companies have adopted a personal investing policy consistent with
Investment Company Institute guidelines.  This policy includes: a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; pre-clearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; blackout periods on
personal investing for certain investment personnel; limitations on service as
a director of publicly traded companies; and disclosure of personal securities
transactions.
   
OTHER INFORMATION - The financial statements including the investment portfolio
and the report of Independent Accountants contained in the Annual Report are
included in this Statement of Additional Information.  The following
information is not included in the Annual Report:
 
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE -- APRIL 30, 1999
 Net asset value and redemption price per share                       
(Net assets divided by shares outstanding) . . . . . . . . . . . $xx.xx
Maximum offering price per share (100/94.25 of                          
         net asset value per share, which takes into
        account the fund's current maximum sales charge). . . . . $xx.xx
 
                               INVESTMENT RESULTS
 
The fund's yield is x.xx% based on a 30-day (or one month) period ended April
30, 1999, computed by dividing the net investment income per share earned
during the period by the maximum offering price per share on the last day of
the period, according to the following formula:
    
YIELD = 2[( a-b/cd + 1)/6/ -1]
 
Where:     a =  dividends and interest earned during the period.
           b =  expenses accrued for the period (net of reimbursements).
           c =  the average daily number of shares outstanding during the      
                period that were entitled to receive dividends.
           d =  the maximum offering price per share on the last day of the    
                period.
   
The fund's total return over the past year and average total returns for the
five- and ten-year periods ending on April 30, 1999 was +xx.xx%, +xx.xx% and
+xx.xx%, respectively.  The average annual total return (T) is computed by
equating the value at the end of the period (ERV) with a hypothetical initial
investment of $1,000 (P) over a period of years (n) according to the following
formula as required by the Securities and Exchange Commission:  P(1+T)/n/ =
ERV.
    
To calculate total return, an initial investment is divided by the offering
price (which includes the sales charge) as of the first day of the period in
order to determine the initial number of shares purchased.  Subsequent
dividends and capital gain distributions are reinvested at net asset value on
the reinvestment date determined by the Board of Directors.  The sum of the
initial shares purchased and shares acquired through reinvestment is multiplied
by the net asset value per share as of the end of the period in order to
determine ending value.  The difference between the ending value and the
initial investment divided by the initial investment converted to a percentage
equals total return.  The resulting percentage indicates the positive or
negative investment results that an investor would have experienced from
reinvested dividends and capital gain distributions and changes in share price
during the periods.  Total return may be calculated for the one year, five
year, ten year and for other periods:  The average annual total return over
periods greater than one year may also be computed by utilizing ending values
as determined above.
 
The fund may also, at times, calculate total return based on net asset value
per share (rather than the offering price), in which case the figure would not
reflect the effect of any sales charges which would have been paid if shares
were purchased during the period reflected in the computation.  Consequently,
total return calculated in this manner will be higher.  These total returns may
be calculated over periods in addition to those described above. 
 
The following assumptions will be reflected in computations made in accordance
with the formulas stated above:  (1) deduction of the maximum sales charge of
5.75% from the $1,000 initial investment; (2) reinvestment of  dividends and
distributions at net asset value on the reinvestment date determined by the
Board; and (3) a complete redemption at the end of any period illustrated.  In
addition, the fund may provide lifetime average total return figures.
The fund may also calculate a distribution rate on a taxable and tax equivalent
basis.  The distribution rate is computed by dividing the dividends paid by the
fund over the last 12 months by the sum of the month-end net asset value or
maximum offering price and the capital gains paid over the last 12 months.  The
distribution rate may differ from the yield.
   
The fund may include information on its investment results and/or comparisons
of its investment results to various unmanaged indices (such as The Dow Jones
Average of 30 Industrial Stocks and The Standard & Poor's 500  Stock Composite
Index) or results of other mutual funds or investment or savings vehicles in
advertisements or in reports furnished to present or prospective shareholders. 
Total return for the unmanaged indices will be calculated assuming reinvestment
if dividends and interest, but will not reflect any deductions for advisory
fees, brokerage costs or administrative expenses.  For educational purposes,
fund literature may contain discussions and/or illustrations of volatility,
risk tolerance, asset allocation and investment strategies.
 
The fund may also, from time to time, combine its results with those of other
funds in The American Funds Group for purposes of illustrating investment
strategies involving multiple funds.
    
The fund may   refer to results compiled by organizations such as CDA
Investment Technologies, Ibbottson Associates, Lipper Analytical Services,
Morningstar, Inc. Wiesenberger Investment Companies Services and the U.S.
Department of Commerce.  Additionally, the Fund may, from time to time, refer
to results published in various newspapers or periodicals, including Barron's,
Forbes, Fortune, Institutional Investor, Kiplinger's Personal Finance Magazine,
Money, U.S. News and World Report and The Wall Street Journal.
 
The fund may from time to time compare its investment results with the
following:
 
(1) Average of Savings Institutions deposits, which is a measure of all kinds
of savings deposits, including longer-term certificates (based on figures
supplied by the U.S. League of Savings Institutions and the Federal Reserve
Board).  Savings deposits offer a guaranteed rate of return on principal, but
no opportunity for capital growth.  The period shown may include periods during
which the maximum rates paid on some savings deposits were fixed by law.
 
(2) The Consumer Price Index, which is a measure of the average change in
prices over time in a fixed market basket of goods and services (e.g. food,
clothing, shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, prescription medicines, and other goods and services that
people buy for day-to-day living).
 
The fund may also from time to time illustrate the benefits of tax-deferral by
comparing taxable investments to investments made through tax-deferred
retirement plans.
   
EXPERIENCE OF THE INVESTMENT ADVISER - Capital Research and Management Company
manages nine growth and growth- income funds that are at least 10 years old. 
In the rolling 10-year periods since January 1, 1969 (138 in all), those funds
have had better total returns than their comparable Lipper indices in 128 of
the 138 periods.
    
Note that past results are not an indication of future investment results. 
Also, the fund has different investment policies than some of the funds
mentioned above.  These results are included solely for the purpose of
informing investors about the experience and history of Capital Research and
Management Company.
 
The investment results set forth below were calculated as described in the
fund's Prospectus.  The fund's results will vary from time to time depending
upon market conditions, the composition of the fund's portfolio and operating
expenses of the fund, so that any investment results reported by the fund
should not be considered representative of what an investment in the fund may
earn in any future period.  These factors and possible differences in
calculation methods should be considered when comparing the fund's investment
results with those published for other mutual funds, other investment vehicles
and unmanaged indices.  The fund's results also should be considered relative
to the risks associated with the fund's investment objective and policies.
The investment results set forth below were calculated as described in the
fund's prospectus.
   
                       WMIF VS. VARIOUS UNMANAGED INDICES
 
<TABLE>
<CAPTION>
10-Year Periods   WMIF             DJIA/1/          S&P 500/2/       Average Savings   
5/01 - 4/30                                                         Deposit/3/       
 
<S>              <C>              <C>              <C>              <C>              
1989-1999        +xxx%            +xxx%            +xxx%            +xxx%            
 
1988-1998        +393%            +500%            +464%            +54%             
 
1987-1997        +237%            +319%            +275%            +57              
 
1986-1996        +241             +333             +279             +61              
 
1985-1995        +261             +385             +296             +67              
 
1984-1994        +273             +355             +297             +78              
 
1983-1993        +275             +312             +284             +89              
 
1982-1992        +409             +498             +424             +102             
 
1981-1991        +356             +351             +325             +113             
 
1980-1990        +453             +418             +375             +120             
 
1979-1989        +426             +360             +374             +122             
 
1978-1988        +386             +302             +327             +123             
 
1977-1987        +419             +319             +372             +125             
 
1976-1986        +353             +207             +277             +124             
 
1975-1985        +334             +162             +235             +120             
 
1974-1984        +300             +140             +189             +114             
 
1973-1983        +281             +127             +148             +108             
 
1972-1982        +133             +49              +70              +98              
 
1971-1981        +132             +72              +96              +88              
 
1970-1980        +117             +77              +98              +80              
 
1969-1979        +80              +40              +46              +76              
 
1968-1978        +87              +40              +44              +72              
 
1967-1977        +103             +54              +49              +70              
 
1966-1976        +98              +58              +58              +67              
 
1965-1975        +61              +30              +37              +64              
 
1964-1974        +76              +48              +57              +61              
 
1963-1973        +100             +83              +111             +58              
 
1962-1972        +138             +105             +129             +55              
 
1961-1971        +144             +98              +120             +53              
 
1960-1970        +133             +73              +107             +50              
 
</TABLE>
 
/1/ The Dow Jones Average of 30 Industrial Stocks is comprised of 30 industrial
companies such as General Motors and General Electric.
/2/ The Standard & Poor's 500 Composite Stock  Index is comprised of
industrial, transportation, public utilities and financial stocks and
represents a large portion of the value of issues traded on the New York Stock
Exchange.  Selected issues traded on the American Stock Exchange are also
included.
/3/ Based on figures supplied by the U.S. League of Savings Institutions and
the Federal Reserve Board which reflect all kinds of savings deposits,
including longer-term certificates.  Savings deposits offer a guaranteed return
of principal and a fixed rate of interest, but no opportunity for capital
growth.  Maximum allowable rates were imposed by law during a part of this
period.
           SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM
 
<TABLE>
<CAPTION>
If you had invested   Periods                             ...and taken all   
$10,000 in the fund                                 distributions in shares,   
this many years ago...                                your investment would   
                                                   have been worth this   
                                                 much at April 30, 1999     
 
                                                                      
 
   Number of Years      5/1-4/30                              Value          
 
<S>                   <C>                     <C>                     
1                     1998 - 1999             xx,xxx                  
 
2                     1997 - 1999             xx,xxx                  
 
3                     1996 - 1999             xx,xxx                  
 
4                     1995 - 1999             xx,xxx                  
 
5                     1994 - 1999             xx,xxx                  
 
6                     1993 - 1999             xx,xxx                  
 
7                     1992 - 1999             xx,xxx                  
 
8                     1991 - 1999             xx,xxx                  
 
9                     1990 - 1999             xx,xxx                  
 
10                    1989 - 1999             xx,xxx                  
 
11                    1988 - 1999             xx,xxx                  
 
12                    1987 - 1999             xx,xxx                  
 
13                    1986 - 1999             xx,xxx                  
 
14                    1985 - 1999             xx,xxx                  
 
15                    1984 - 1999             xxx,xxx                 
 
16                    1983 - 1999             xxx,xxx                 
 
17                    1982 - 1999             xxx,xxx                 
 
18                    1981 - 1999             xxx,xxx                 
 
19                    1980 - 1999             xxx,xxx                 
 
20                    1979 - 1999             xxx,xxx                 
 
21                    1978 - 1999             xxx,xxx                 
 
22                    1977 - 1999             xxx,xxx                 
 
23                    1976 - 1999             xxx,xxx                 
 
24                    1975 - 1999             xxx,xxx                 
 
25                    1974 - 1999             xxx,xxx                 
 
26                    1973 - 1999             xxx,xxx                 
 
27                    1972 - 1999             xxx,xxx                 
 
28                    1971 - 1999             xxx,xxx                 
 
29                    1970 - 1999             xxx,xxx                 
 
30                    1969 - 1999             xxx,xxx                 
 
</TABLE>
 
ILLUSTRATION OF A $10,000 INVESTMENT IN WMIF WITH
DIVIDENDS REINVESTED AND CAPITAL GAIN DISTRIBUTIONS TAKEN IN SHARES
(For the lifetime of the fund July 31, 1952 through April 30,1999)
 
<TABLE>
<CAPTION>
                               COST OF SHARES                                                                                  VALUE
OF SHARES                                                                               
 
 Fiscal    Annual       Total                             From             From                  From            Total        
Year End   Dividends    Dividends      Investment         Initial          Capital Gains         Dividends        Value       
 4/30                     (cumulative)       Cost           Investment       Reinvested            Reinvested                   
 
                                                                                                                              
 
<S>        <C>          <C>            <C>                <C>              <C>                   <C>             <C>          
1953*              $      170   $       170    $     10,170       $   9,161        ----                  $    169        $  9,330   
 
 
1954       450          620            10,620             10,781           ----                  713             11,494       
 
1955       542          1,162          11,162             14,732           ----                  1,556           16,288       
 
1956       654          1,816          11,816             17,447           $   613               2,505           20,565       
 
1957       756          2,572          12,572             17,145           1,553                 3,179           21,877       
 
1958       825          3,397          13,397             15,056           2,339                 3,660           21,055       
 
1959       885          4,282          14,282             21,119           3,915                 6,037           31,071       
 
1960       947          5,229          15,229             18,644           4,411                 5,986           29,041       
 
1961       1,097        6,326          16,326             21,113           6,918                 8,136           36,167       
 
1962       1,145        7,471          17,471             20,880           7,903                 8,871           37,654       
 
1963       1,279        8,750          18,750             21,292           10,289                10,697          42,278       
 
1964       1,368        10,118         20,118             22,614           11,980                12,515          47,109       
 
1965       1,463        11,581         21,581             25,782           15,757                15,951          57,490       
 
1966       1,648        13,229         23,229             26,237           17,691                17,675          61,603       
 
1967       1,906        15,135         25,135             25,833           19,766                19,671          65,270       
 
1968       2,231        17,366         27,366             28,313           21,945                22,434          72,692       
 
1969       2,626        19,992         29,992             31,708           27,163                26,705          85,576       
 
1970       2,874        22,866         32,866             23,523           24,878                23,202          71,603       
 
1971       3,193        26,059         36,059             26,927           33,989                32,471          93,387       
 
1972       3,456        29,515         39,515             27,419           33,511                34,591          95,521       
 
1973       3,671               33,186   43,186             23,933           31,776                33,813          89,522       
 
1974       3,907        37,093         47,093             21,893           31,023                35,040          87,956       
 
1975       4,829        41,922         51,922             22,959           33,179                42,177          98,315       
 
1976       5,498        47,420         57,420             30,739           41,142                58,068          129,949      
 
1977       6,171        53,591         63,591             31,274           44,673                64,401          140,348      
 
1978       6,849        60,440         70,440             29,078           46,414                68,847          144,339      
 
1979       7,785        68,225         78,225             33,575           50,187                79,313          163,075      
 
1980       9,167        77,392         87,392             34,433           50,777                80,637          165,847      
 
1981       14,603             91,995   101,995            28,652           86,269                115,502         230,423      
 
1982       13,326       105,321        115,321            26,352           90,133                119,283         235,768      
 
1983       15,516       120,837        130,837            36,494           142,811               182,987         362,292      
 
1984       17,526       138,363        148,363            32,460           162,054               178,994         373,508      
 
1985       20,783       159,146        169,146            34,910           204,484               213,103         452,497      
 
1986       24,381       183,527        193,527            44,373           281,961               297,433         623,767      
 
1987       28,229       211,756        221,756            50,179           356,068               365,700         771,947      
 
1988       30,815       242,571        252,571            44,826           341,861               356,167         742,854      
 
1989       27,837       270,408        280,408            53,157           405,403               453,047         911,607      
 
1990       41,689       312,097        322,097            51,838           438,105               481,106         971,049      
 
1991       44,572       356,669        366,669            56,626           482,927               574,191         1,113,744    
 
1992       42,318       398,987        408,987            61,150           546,304               664,916         1,272,370    
 
1993       44,627       443,614        453,614            66,315           607,607               768,464         1,442,386    
 
1994       46,718       490,332        500,332            64,505           622,162               792,442         1,479,109    
 
1995       55,058       545,390        555,390            71,140           726,340               933,211         1,730,691    
 
1996       58,187       603,577        613,577            85,844           982,808               1,188,237       2,256,889    
 
1997       62,763       666,340        676,340            97,757           1,245,507             1,419,762       2,763,026    
 
1998       67,444       733,784        743,784            127,879          1,831,030             1,931,336       3,890,245    
 
1999       xx,xxx       xxx,xxx        xxx,xxx            xxx,xxx          x,xxx,xxx             x,xxx,xxx       x,xxx,xxx    
 
</TABLE>
 
 
  The dollar amount of capital gain distributions from inception was $xxx,xxx
  /*/From July 31, 1952, the date the fund commenced operation.
              THE BENEFITS OF SYSTEMATIC INVESTING IN WMIF.......
 
<TABLE>
<CAPTION>
An initial investment of $1,000 in WMIF on May 1 would have grown to                                                
these amounts over the past 10, 20, 30 and 40 years:                                                
 
<S>              <C>            <C>            <C>            
                                                              
 
10 Years         20 Years       30 Years       40 Years       
(5/1/89-4/30/99)   (5/1/79-4/30/99)   (5/1/69-4/30/99)   (5/1/59-4/30/99)   
 
                                                              
 
$x,xxx           $xx,xxx        $xx,xxx        $xxx,xxx       
 
</TABLE>
 
 
<TABLE>
<CAPTION>
$1,000 invested in WMIF followed by annual $500 investments (all                                                
investments made on May 1) would have grown to these amounts over                                                
the past 10, 20, 30 and 40 years:                                                
 
<S>              <C>            <C>            <C>            
                                                              
 
10 Years         20 Years       30 Years       40 Years       
(5/1/89-4/30/99)   (5/1/79-4/30/99)   (5/1/69-4/30/99)   (5/1/59-4/30/99)   
 
                                                              
 
$xx,xxx          $xx,xxx        $xxx,xxx       $xxx,xxx       
 
</TABLE>
 
 
<TABLE>
<CAPTION>
$2,000 invested in WMIF on May 1 of each year would have grown to these                                                
amounts over the past 10, 20, 30 and 40 years:                                                
 
<S>              <C>            <C>            <C>            
                                                              
 
10 Years         20 Years       30 Years       40 Years       
(5/1/89-4/30/99)   (5/1/79-4/30/99)   (5/1/69-4/30/99)   (5/1/59-4/30/99)   
 
                                                              
 
$xx,xxx          $xxx,xxx       $x,xxx,xxx     $x,xxx,xxx     
 
</TABLE>
    
 
                            PART C
                      OTHER INFORMATION
    
ITEM 23 EXHIBITS:
  (a). On file (see SEC files nos. 811-604 and 2-11051)
  (b). On file (see SEC files nos. 811-604 and 2-11051)
  (c). None
  (d). On file (see SEC files nos. 811-604 and 2-11051)
  (e). On file (see SEC files nos. 811-604 and 2-11051)
  (f). None
  (g). On file (see SEC files nos. 811-604 and 2-11051)
  (h). On file (see SEC files nos. 811-604 and 2-11051)
  (i). Not applicable to this filing.
 (j). Consent of Independent Accountants - to be provided with 485(b) filing
 (k).  None
 (l). Not applicable to this filing.
 (m). On file (see SEC files nos. 811-604 and 2-11051)
 (n). EX-27 Financial Data Schedule  (EDGAR) - to be provided with 485(b)
filing
 (o). None
 
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
 
 None
    
   
ITEM 25. INDEMNIFICATION.    
 
  Registrant is a joint-insured under an Investment Advisor/Mutual Fund Errors
and Omissions Policy written by American International Surplus Lines Insurance
Company, Chubb Custom Insurance Company and ICI Mutual Insurance Company which
insures its officers and directors against certain liabilities.
 
  ARTICLE VIII (H) AND (I) OF THE ARTICLES OF INCORPORATION OF THE FUND PROVIDE
THAT:
  (h)  "The Corporation shall indemnify (1) its directors and officers, whether
serving the Corporation or at its request any other entity, to the full extent
required or permitted by the General Laws of the State of Maryland now or
hereafter in force, including the advance of expenses under the procedures and
to the full extent permitted by law, and (2) its other employees and agents to
such extent as shall be authorized by the Board of Directors or the
Corporation's By-Laws and be permitted by law.  The foregoing rights of
indemnification shall not be exclusive of any other rights to which those
seeking indemnification may be entitled.  The Board of Directors may take such
action 
 
ITEM 25. INDEMNIFICATION (CONT.)
as is necessary to carry out these indemnification provisions and is expressly
empowered to adopt, approve and amend from time to time such By-Laws,
resolutions or contracts implementing such provisions or such further
indemnification arrangements as may be permitted by law.  No amendment of these
Articles of the Corporation shall limit or eliminate the right to
indemnification provided hereunder with respect to acts or omissions occurring
prior to such amendment or repeal.  Nothing contained herein shall be construed
to authorize the Corporation to indemnify any director or officer of the
Corporation against any liability to the Corporation or to any holders of
securities of the Corporation to which he is subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of his office.  Any indemnification by the Corporation
shall be consistent with the requirements of law, including the [Investment
Company] Act [of 1940].
 
  (i) To the fullest extent permitted by Maryland statutory and decisional law
and the [Investment Company] Act [of 1940], no director or officer of the
Corporation shall be personally liable to the Corporation or its shareholders
for money damages; provided, however, that nothing herein shall be construed to
protect any director or officer of the Corporation against any liability to
which such director or officer would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of his office.  No amendment, modification or repeal of
this Article VIII shall adversely affect any right or protection of a director
or officer that exists at the time of such amendment, modification or repeal."
  Subsection (b) of Section 2-418 of the GENERAL CORPORATION LAW OF MARYLAND
empowers a corporation to indemnify any person who was or is party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other
than an action by or in the right of the corporation) by reason of the fact
that he is or was a director, officer, employee or agent of the corporation or
is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation or enterprise, against reasonable
expenses (including attorneys' fees), judgments, penalties, fines and amounts
paid in settlement actually incurred by him in connection with such action,
suit or proceeding unless it is proved that:  (i) the act or omission of the
person was material to the cause of action adjudicated in the proceeding and
was committed in bad faith or was the result of active and deliberate
dishonesty; (ii) the person actually received an improper personal benefit of
money, property or services; or (iii) with respect to any criminal action or
proceeding, the person had reasonable cause to believe his act or omission was
unlawful.
 
  Indemnification under subsection (b) of Section 2-418 may not be made by a
corporation unless authorized for a specific proceeding after a determination
has been made that indemnification is permissible in the circumstances because
the party to be indemnified has met the standard of conduct set forth in
subsection (b).  This determination shall be made (i) by the Board of Directors
by a majority vote of a quorum consisting of directors not, at the time,
parties to the proceeding, or, if such quorum cannot be obtained, then by a
majority vote of a committee of the Board consisting solely of two or more
directors not, at the time, parties to such proceeding and who were duly
designated to act in the matter by a majority vote of the full Board in which
the designated directors who are parties may participate; (ii) by special legal
counsel selected by the Board of Directors of a committee of the Board by vote
as set forth in subparagraph (i), or, if the requisite quorum of the full Board
cannot be obtained therefor and the committee cannot be established, by a
majority vote of the full Board in which any director who is a party may
participate; or (iii) by the shareholders (except that shares held by any party
to the specific proceeding may not be voted).  A court of appropriate
jurisdiction may also order indemnification if the court determines that a
person seeking indemnification is entitled to reimbursement under subsection
(b).
 
  Section 2-418 further provides that indemnification provided for by Section
2-418 shall not be deemed exclusive of any rights to which the indemnified
party may be entitled; that the scope of indemnification extends to directors,
officers, employees or agents of a constituent corporation absorbed in a
consolidation or merger and persons serving in that capacity at the request of
the constituent corporation for another; and empowers the corporation to
purchase and maintain insurance on behalf of a director, officer, employee or
agent of the corporation against any liability asserted against or incurred by
such person in any such capacity or arising out of such person's status as such
whether or not the corporation would have the power to indemnify such person
against such liabilities under Section 2-418.
   
ITEM 26.     BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
  None.
 
   ITEM 27.     PRINCIPAL UNDERWRITERS.
 
  (a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of:  AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, EuroPacific
Growth Fund, Fundamental Investors, Inc., The Growth Fund of America, Inc., The
Income Fund of America, Inc., Intermediate Bond Fund of America, The Investment
Company of America, Limited Term Tax-Exempt Bond Fund of America, The New
Economy Fund, New Perspective Fund, Inc., SMALLCAP World Fund, Inc., The
Tax-Exempt Bond Fund of America, Inc., The Tax-Exempt Money Fund of America and
The U.S. Treasury Money Fund of America.
   
<TABLE>
<CAPTION>
(B)    (1)                            (2)                                     (3)        
 
      NAME AND PRINCIPAL             POSITIONS AND OFFICES       POSITIONS AND OFFICES   
        BUSINESS ADDRESS                WITH UNDERWRITER            WITH REGISTRANT        
 
                                                                                         
 
<S>   <C>                            <C>                         <C>                     
      David L. Abzug                 Regional Vice President     None                    
 
      27304 Park Vista Road                                                              
      Agoura Hills, CA 91301                                                             
 
                                                                                  
 
      John A. Agar                   Vice President              None                    
      1501 N. University Drive, Suite 227A                                                       
      Little Rock, AR 72207                                                              
 
                                                                                         
 
      Robert B. Aprison              Regional Vice President     None                    
      2983 Bryn Wood Drive                                                               
      Madison, WI  53711                                                                 
 
                                                                                         
 
L     William W. Bagnard             Vice President              None                    
 
                                                                                         
 
      Steven L. Barnes               Vice President              None                    
 
      5400 Mt. Meeker Road, Suite 1                                                       
      Minneapolis, MN 55438                                                              
 
                                                                                         
 
                                                                                         
 
B     Carl R. Bauer                  Assistant Vice President    None                    
 
                                                                                         
 
      Michelle A. Bergeron            Senior Vice President      None                    
      4160 Gateswalk Drive                                                               
      Smyrna, GA  30080                                                                  
 
                                                                                         
 
      Joseph T. Blair                Senior Vice President       None                    
      27 Drumlin Road                                                                    
      West Simsbury, CT  06092                                                           
 
                                                                                         
 
      John A. Blanchard              Vice President              None                    
      6421 Aberdeen Road                                                                 
      Mission Hills, KS 66208                                                            
 
                                                                                         
 
      Ian B. Bodell                  Senior Vice President       None                    
 
      P.O. Box 1665                                                                      
      Brentwood, TN  37024-1665                                                          
 
                                                                                         
 
      Michael L. Brethower           Senior Vice President       None                    
 
      2320 North Austin Avenue                                                           
      Georgetown, TX  78626                                                              
 
                                                                                         
 
      C. Alan Brown                  Regional Vice President     None                    
 
      4129 Laclede Avenue                                                                
      St. Louis, MO  63108                                                               
 
                                                                                         
 
B     J. Peter Burns                 Vice President              None                    
 
                                                                                         
 
      Brian C. Casey                 Regional Vice President     None                    
 
      9508 Cable Drive                                                                   
      Bethesda, MD 20817                                                                 
 
                                                                                         
 
      Victor C. Cassato              Senior Vice President        None                   
      609 W. Littleton Blvd., Suite 310                                                       
      Littleton, CO  80120                                                               
 
                                                                                         
 
      Christopher J. Cassin          Senior Vice President       None                    
      111 W. Chicago Avenue, Suite G3                                                       
      Hinsdale, IL 60521                                                                 
 
                                                                                         
 
      Denise M. Cassin                Vice President             None                    
      1301 Stoney Creek Drive                                                            
      San Ramon CA 94538                                                                 
 
                                                                                         
 
L     Larry P. Clemmensen            Director                    None                    
 
                                                                                         
 
L     Kevin G. Clifford              Director and President       None                   
 
                                                                                         
 
      Ruth M. Collier                Senior Vice President       None                    
      145 West 67th St. Ste. 12K                                                         
      New York, NY  10023                                                                
 
                                                                                         
 
S     David Coolbaugh                Assistant Vice President    None                    
 
                                                                                         
 
      Thomas E. Cournoyer            Vice President              None                    
      2333 Granada Boulevard                                                             
      Coral Gables, FL  33134                                                            
 
                                                                                         
 
      Douglas A. Critchell           Senior Vice President       None                    
 
      4116 Woodbine St.                                                                  
      Chevy Chase, MD 20815                                                              
 
                                                                                         
 
L     Carl D. Cutting                Vice President              None                    
 
                                                                                         
 
      Daniel J. Delianedis           Regional Vice President     None                    
      8689 Braxton Drive                                                                 
      Eden Prairie, MN 55347                                                             
 
                                                                                         
 
      Michael A. Dilella             Vice President              None                    
      P.O. Box 661                                                                       
      Ramsey, NJ  07446                                                                  
 
                                                                                         
 
      G. Michael Dill                Senior Vice President        None                   
      505 E. Main Street                                                                 
      Jenks, OK  74037                                                                   
 
                                                                                         
 
      Kirk D. Dodge                  Senior Vice President       None                    
 
      633 Menlo Avenue, Suite 210                                                        
 
      Menlo Park, CA 94025                                                               
 
                                                                                         
 
      Peter J. Doran                 Senior Vice President       None                    
      1205 Franklin Avenue                                                               
      Garden City, NY  11530                                                             
 
                                                                                         
 
L     Michael J. Downer              Secretary                   None                    
 
                                                                                         
 
      Robert W. Durbin               Vice President              None                    
      74 Sunny Lane                                                                      
      Tiffin, OH  44883                                                                  
 
                                                                                         
 
I     Lloyd G. Edwards               Senior Vice President       None                    
 
                                                                                         
 
L     Paul H. Fieberg                Senior Vice President       None                    
 
                                                                                         
 
      John Fodor                      Vice President             None                    
      15 Latisquama Road                                                                 
      Southborough, MA 01772                                                             
 
                                                                                         
 
      Clyde E. Gardner               Senior Vice President       None                    
      Route 2, Box 3162                                                                  
      Osage Beach, MO  65065                                                             
 
                                                                                         
 
B     Evelyn K. Glassford            Vice President              None                    
 
                                                                                         
 
      Jeffrey J. Greiner             Vice President              None                    
 
      12210 Taylor Road                                                                  
      Plain City, OH 43064                                                               
 
                                                                                         
 
L     Paul G. Haaga, Jr.             Director                    None                    
 
                                                                                         
 
B     Mariellen Hamann               Assistant Vice President    None                    
 
                                                                                         
 
      David E. Harper                Senior Vice President       None                    
      R.D. 1, Box 210, Rte 519                                                           
      Frenchtown, NJ  08825                                                              
 
                                                                                         
 
      Ronald R. Hulsey               Vice President              None                    
      6744 Avalon                                                                        
      Dallas, TX  75214                                                                  
 
                                                                                         
 
      Robert S. Irish                Regional Vice President     None                    
      1225 Vista Del Mar Drive                                                           
      Delray Beach, FL 33843                                                             
 
                                                                                         
 
L     Robert L. Johansen             Vice President, Controller   None                    
 
                  
 
      Michael J. Johnston            Director                    None                    
      630 Fifth Ave., 36th Floor                                                         
      New York, NY 10111-0121                                                            
 
                                                                                         
 
B     Damien M. Jordan               Vice President              None                    
 
                                                                                         
 
      Arthur J. Levine               Vice President              None                    
      12558 Highlands Place                                                              
      Fishers, IN  46038                                                                 
 
                                                                                         
 
B     Karl A. Lewis                  Assistant Vice President    None                    
 
                                                                                         
 
      T. Blake Liberty               Regional Vice President     None                    
      5506 East Mineral Lane                                                             
      Littleton, CO 80122                                                                
 
                  
 
      Mark J. Lien                   Regional Vice President     None                    
      5570 Beechwood Terrace                                                             
      West Des Moines, IA 50266                                                          
 
                                                                                         
 
L     Lorin E. Liesy                 Assistant Vice President    None                    
 
                                             
 
L     Susan G. Lindgren              Vice President - Institutional Investment Services Division   None                    
 
                                                                                         
 
LW    Robert W. Lovelace             Director                    None                    
 
                                                                                         
 
      Stephen A. Malbasa             Vice President              None                    
      13405 Lake Shore Blvd.                                                             
      Cleveland, OH  44110                                                               
 
                                                                                         
 
      Steven M. Markel               Senior Vice President       None                    
      5241 South Race Street                                                             
      Littleton, CO  90121                                                               
 
                                                                                         
 
L     John C. Massar                 Director, Senior Vice President   None                    
 
                                                                                         
 
L     E. Lee McClennahan             Senior Vice President       None                    
 
                                                                                         
 
L     Jamie R. McCrary               Assistant Vice President    None                    
 
                                                                                         
 
S     John V. McLaughlin             Senior Vice President       None                    
 
                                                                                         
 
      Terry W. McNabb                Vice President              None                    
      2002 Barrett Station Road                                                          
      St. Louis, MO  63131                                                               
 
                                                                                         
 
L     R. William Melinat             Vice President - Institutional   None                    
                                     Investment Services Division                           
 
                                                                                         
 
      David R. Murray                Regional Vice President     None                    
 
      60 Briant Drive                                                                    
      Sudbury, MA 01776                                                                  
 
                                                                                         
 
      Stephen S. Nelson              Vice President              None                    
      P.O. Box 470528                                                                    
      Charlotte, NC  28247-0528                                                          
 
                                                                                         
 
      William E. Noe                 Regional Vice President     None                    
      304 River Oaks Road                                                                
      Brentwood, TN 37027                                                                
 
                                                                                         
 
      Peter A. Nyhus                 Vice President              None                    
      3084 Wilds Ridge Court                                                             
      Prior Lake, MN 55372                                                               
 
                                                                                         
 
      Eric P. Olson                  Vice President              None                    
      62 Park Drive                                                                      
      Glenview, IL 60025                                                                 
 
                                                                                         
 
      Fredric Phillips               Senior Vice President       None                    
 
      175 Highland Avenue, 4th Floor                                                       
      Needham, MA 02194                                                                  
 
                                                                                         
 
B     Candance Pilgram               Assistant Vice President    None                    
 
                 
 
      Carl S. Platou                 Vice President              None                    
      4021 96th Avenue, SE                                                               
      Mercer Island, WA 98040                                                            
 
                                             
 
L     John O. Post, Jr.              Vice President              None                    
 
                                                                                         
 
S     Richard P. Prior               Assistant Vice President    None                    
 
                                                                                         
 
      Steven J. Reitman              Senior Vice President       None                    
      212 The Lane                                                                       
      Hinsdale, IL 60521                                                                 
 
                                                                                         
 
      Brian A. Roberts               Vice President              None                    
 
      11404 Foxhaven Drive                                                               
      Charlotte, NC  28277                                                               
 
                                                                                         
 
      George S. Ross                 Senior Vice President       None                    
      55 Madison Avenue                                                                  
      Morristown, NJ  07962                                                              
 
                                                                                         
 
L     Julie D. Roth                  Vice President              None                    
 
                                                                                         
 
L     James F. Rothenberg            Director                    None   
 
                 
 
      Douglas F. Rowe                Vice President              None                    
 
      30008 Oakland Hills Drive                                                          
      Georgetown, TX 78628                                                               
 
                                                                                         
 
      Christopher Rowey              Regional Vice President     None                    
      9417 Beverlywood Street                                                            
      Los Angeles, CA 90034                                                              
 
                                                                                         
 
      Dean B. Rydquist               Senior Vice President       None                    
      1080 Bay Pointe Crossing                                                           
      Alpharetta, GA 30005                                                               
 
                                                                                         
 
      Richard R. Samson              Senior Vice President       None                    
      4604 Glencoe Avenue, No. 4                                                         
      Marina del Rey, CA  90292                                                          
 
                                                                                         
 
      Joe D. Scarpitti               Vice President              None                    
      31465 St. Andrews                                                                  
      Westlake, OH 44145                                                                 
 
                                                                                         
 
L     R. Michael Shanahan            Director                    None                    
 
                                                                                         
 
      David W. Short                 Director, Chairman of the Board   None                    
      1000 RIDC Plaza, Ste 212       and Co-Chief Executive Officer                           
      Pittsburgh, PA  15238                                                              
 
                                                                                         
 
      William P. Simon, Jr.          Senior Vice President       None                    
 
      912 Castlehill Lane                                                                
      Devon, PA 91333                                                                    
 
                                                                                         
 
L     John C. Smith                  Vice President - Institutional Investment Services Division   None                    
 
                                                                                         
 
L     Mary E. Smith                  Vice President - Institutional Investment Services Division   None                    
 
                 
 
      Rodney G. Smith                Vice President              None                    
 
      100 N. Central Expressway, Suite 1214                                                       
      Richardson, TX  75080                                                              
 
                                                                                         
 
      Anthony L. Soave               Regional Vice President     None                    
      8831 Morning Mist Drive                                                            
      Clarkston, MI 48348                                                                
 
                                             
 
      Nicholas D. Spadaccini         Regional Vice President     None                    
      855 Markley Woods Way                                                              
      Cincinnati, OH 45230                                                               
 
                                             
 
L     Kristen J. Spazafumo           Assistant Vice President    None                    
 
                                                                                         
 
      Daniel S. Spradling            Senior Vice President       None                    
 
      1400 Southdown Road                                                                
      Hillsborough, CA 94010                                                             
 
                                                                                         
 
B     Max D. Stites                  Vice President              None                    
 
                                                                                         
 
      Thomas A. Stout                Regional Vice President     None                    
 
      3919 Whooping Crane Circle                                                         
      Virginia Beach, VA  23455                                                          
 
                                                                                         
 
      Craig R. Strauser              Vice President              None                    
      3 Dover Way                                                                        
      Lake Oswego, OR 97034                                                              
 
                                                                                         
 
      Francis N. Strazzeri           Senior Vice President       None                    
      31641 Saddletree Drive                                                             
      Westlake Village, CA 91361                                                         
 
                                                                                         
 
L     Drew W. Taylor                 Assistant Vice President    None                    
 
                                                                                         
 
S     James P. Toomey                Vice President              None                    
 
                                                                                         
 
I     Christopher E. Trede           Vice President              None                    
 
                                                                                         
 
      George F. Truesdail            Vice President              None                    
      400 Abbotsford Court                                                               
      Charlotte, NC  28270                                                               
 
                                                                                         
 
      Scott W. Ursin-Smith           Vice President              None                    
      60 Reedland Woods Way                                                              
      Tiburon, CA 94920                                                                  
 
                                                                                         
 
L     John David Viale               Regional Vice President     None                    
 
                                                                                         
 
      Thomas E. Warren               Regional Vice President     None                    
 
      119 Faubel Street                                                                  
      Sarasota, FL 34242                                                                 
 
                                                                                         
 
L     J. Kelly Webb                  Sr. Vice President, Treasurer   None                    
 
                                                                                         
 
      Gregory J. Weimer              Regional Vice President     None                    
 
      206 Hardwood Drive                                                                 
      Venetia, PA  15367                                                                 
 
                                                                                         
 
B     Timothy W. Weiss               Director                     None                   
 
                                                                                         
 
      George J. Wenzel               Regional Vice President     None                    
      3406 Shakespeare Drive                                                             
      Troy, MI 48084                                                                     
 
                                             
 
      Timothy J. Wilson              Vice President              None                    
      113 Farmview Place                                                                 
      Venetia, PA 15367                                                                  
 
                                                                                         
 
B     Laura L. Wimberly              Vice President              None                    
 
                                                                                         
 
H     Marshall D. Wingo              Senior Vice President       None                    
 
                                                                                         
 
L     Robert L. Winston              Director, Senior Vice President   None                    
 
                                                                                         
 
      William Yost                   Vice President              None                    
      9320 Overlook Trail                                                                
      Eden Prairie, MN  55347                                                            
 
                                                                                         
 
      Janet M. Young                 Regional Vice President     None                    
      1616 Vermont                                                                       
      Houston, TX  77006                                                                 
 
                                                                                         
 
      Scott D. Zambon                Regional Vice President     None                    
 
      2887 Player Lane                                                                   
      Tustin Ranch, CA 92782                                                             
 
</TABLE>
 
_______________________
L Business Address, 333 South Hope Street, Los Angeles, CA  90071
LW Business Address, 11100 Santa Monica Boulevard, 15th Floor, Los Angeles, CA
90025
B Business Address, 135 South State College Boulevard, Brea, CA  928621
S Business Address, 3500 Wiseman Boulevard, San Antonio, TX  78230
H Business Address, 5300 Robin Hood Road, Norfolk, VA 23513 
I Business Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN  46240 
    
  (c)  None.
 
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS.
 
 Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, are maintained and kept in the offices of the
fund, 1101 Vermont Avenue, N.W., Washington, D.C. 20005, and its investment
adviser, Capital Research and Management Company, 333 South Hope Street, Los
Angeles, CA 90071.  Certain accounting records are maintained and kept in the
offices of the fund's accounting department,
5300 Robin Hood Road, Norfolk, VA 23513 .
   
 Records covering shareholder accounts are maintained and kept by the Transfer
Agent, American Funds Service Company, 135 South State College Blvd., Brea, CA 
92821, 3500 Wiseman Boulevard, San Antonio, TX 78251, 5300 Robin Hood Road,
Norfolk, VA 23513 and 8332 Woodfield Crossing Blvd., Indianapolis, IN  46240.
    
 Records covering portfolio transactions are also maintained and kept by the
custodian, The Chase Manhattan Bank, N.A.,  One Chase Manhattan Plaza, New
York, New York, 10081.
   
ITEM 29.     MANAGEMENT SERVICES.
 None.
   
ITEM 30.     UNDERTAKINGS.
 None.
 
                            SIGNATURE OF REGISTRANT
 
 Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 the Registrant has duly caused this Registration Statement
to be signed on its behalf by the undersigned, thereto duly authorized, in the
City of Washington, District of Columbia, on the 8th day of April, 1999.
 
    WASHINGTON MUTUAL INVESTORS FUND, INC.
 
    By  Stephen Hartwell, Chairman of the Board
 
 Pursuant to the requirements of the Securities Act of 1933, this amendment to
the Registration Statement has been signed below on April 8th, 1999, by the
following persons in the capacities indicated.
 
           SIGNATURE               TITLE
 
(1) PRINCIPAL EXECUTIVE OFFICER: 
        Stephen Hartwell  Chairman of the Board
 
(2)  PRINCIPAL FINANCIAL OFFICER AND
 PRINCIPAL ACCOUNTING OFFICER:
        Ralph S. Richard  Vice President and Treasurer
 
(3)  DIRECTORS
        Stephen Hartwell  Chairman of the Board
        James H. Lemon, Jr.*  Vice Chairman of the Board
        Harry J. Lister*   President
        Cyrus A. Ansary*  Director
        Fred J. Brinkman*  Director
        Daniel J. Callahn III*  Director
        James C. Miller III*  Director
        T. Eugene Smith*  Director
        Leonard P. Steuart II*  Director
        Margita E. White*  Director
        *By Howard L. Kitzmiller,
            Attorney-in-Fact


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