-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KBZ0zf4F7z1RqM2BXGMPi6qhygP027uywgWgVadRhUNgvz+JxwftMUHe2u+Dbk01 4/QaakFjVHxeo7xs0MVaNA== 0000104865-05-000016.txt : 20051228 0000104865-05-000016.hdr.sgml : 20051228 20051228141209 ACCESSION NUMBER: 0000104865-05-000016 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051031 FILED AS OF DATE: 20051228 DATE AS OF CHANGE: 20051228 EFFECTIVENESS DATE: 20051228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON MUTUAL INVESTORS FUND INC CENTRAL INDEX KEY: 0000104865 IRS NUMBER: 660793788 STATE OF INCORPORATION: MD FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-00604 FILM NUMBER: 051288555 BUSINESS ADDRESS: STREET 1: 1101 VERMONT AVE NW STREET 2: STE 600 CITY: WASHINGTON STATE: DC ZIP: 20005 BUSINESS PHONE: 2028425665 MAIL ADDRESS: STREET 1: 1101 VERMONT AVENUE NW STREET 2: SUITE 600 CITY: WASHINGTON STATE: DC ZIP: 20005 N-CSRS 1 ncsr.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR Certified Shareholder Report of Registered Management Investment Companies Investment Company Act File Number: 811-604 Washington Mutual Investors Fund, Inc. (Exact Name of Registrant as specified in charter) 1101 Vermont Avenue, NW Washington, DC 20005 (Address of principal executive offices) Registrant's telephone number, including area code: (202) 842-5665 Date of fiscal year end: April 30, 2006 Date of reporting period: October 31, 2005 Burton L. Raimi Secretary Washington Mutual Investors Fund, Inc. 1101 Vermont Avenue, NW Washington, DC 20005 (name and address of agent for service) ITEM 1 - Reports to Stockholders (logo American funds(R)) The right choice for the long term(R) Washington Mutual Investors Fund (picture of George Washington statue) Semi-annual report for the six months ended October 31, 2005 Washington Mutual Investors Fund(SM) seeks to provide income and growth of principal through investments in quality common stocks. This Fund is one of the 29 American Funds. The organization ranks among the nation's three largest mutual fund families. For more than seven decades, Capital Research and Management Company(SM), the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk. Figures shown in this report are past results for Class A shares (unless otherwise indicated) and are not predictive of results in future periods. Fund results shown (unless otherwise indicated) are at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Current and future results may be lower or higher than those shown. For the most current information and month-end results, visit americanfunds.com. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2005 (the most recent calendar quarter): 1 year 5 years 10 years Class A shares Reflecting 5.75% maximum sales charge Average annual total return -- +4.11% +10.11% Cumulative total return +2.20% +22.32% +162.01% The Fund's investment adviser and business manager each waived 5% of their manage-ment fees from September 1, 2004 through March 31, 2005, and increased the waivers to 10% on April 1, 2005. Fund results shown reflect the waivers, without which they would have been lower. Please see the Financial Highlights table on page 22 for details. Results for other share classes can be found on page 31. Please see the inside back cover for important information about other share classes. About the cover: A profile view of the statue of General George Washington in Boston's Public Garden. Fellow shareholders: (picture of George Washington's head from cover photo) Despite rising interest rates, higher energy prices and Gulf Coast hurricanes in late summer, the nation's economy -- as represented by its gross domestic product -- expanded at an annual rate of 4.3% in the third quarter ended September 30, 2005. This continuing strength reinforced the Federal Reserve Board's resolve to continue increasing the federal funds rate (now up to 4.0%). The Federal Reserve Board remains concerned that higher energy costs may soon be increasingly reflected in higher prices of both goods and services. Thus far, however, general price increases have been moderate and long-term interest rates have been relatively stable. For the past six months, Washington Mutual Investors Fund's total return, with dividends reinvested, was 2.8%, compared with the unmanaged Standard & Poor's 500 Composite Index's total return of 5.3%. This period was one in which smaller and more speculative companies showed greater relative returns than large, mature companies. Over longer periods, your Fund showed the following results: Average annual total returns for periods ended October 31, 2005 1 year 5 years 10 years Lifetime* Washington Mutual +6.3% +4.3% +10.7% +12.7% S&P 500 +8.7% -1.7% +9.3% +11.3% *Since the Fund's inception on July 31, 1952. Washington Mutual's concentration of holdings remained almost identical to that of a year ago, with financials at almost 22% of net assets. The excellent income stream from the financial sector was an important factor facilitating the increase in Washington Mutual's quarterly dividend to 15 cents per share in June. During the six-month period, 46 (or 29%) of the Fund's holdings increased their dividends. During the six-month period, six new equity securities have appeared in the Fund's portfolio: Baker Hughes, Gap, Harley-Davidson Motor, Johnson Controls, McKesson and R.R. Donnelley & Sons. Meanwhile, 10 companies have been eliminated: ALLTEL, Burlington Northern Santa Fe, CenturyTel, Comerica, Dow Jones, Gillette, Honeywell International, IKON Office Solutions, Mylan Laboratories and Unocal. We wish to inform you that T. Eugene Smith will be retiring this month after 18 years of dedicated service on the Fund's Board of Directors. We are deeply appreciative of his advice, support and leadership. The Board of Directors has elected Barbara Hackman Franklin as an independent Director of the Fund. Ms. Franklin is president and CEO of Barbara Franklin Enterprises, an international business consulting firm. She served as the 29th U.S. Secretary of Commerce in the administration of President George H.W. Bush. Ms. Franklin serves on the board of several public companies and has been recognized as "Director of the Year" by The National Association of Corporate Directors (2000) and Board Alert (2003). She is currently a member of the Public Company Accounting Oversight Board Advisory Council, a Trustee of the Financial Accounting Foundation and chairman of the Economic Club of New York. In addition, the Fund's Board has elected R. Clark Wadlow to serve on the Fund's Advisory Board. Mr. Wadlow is an attorney with extensive experience in the communications industry. As always, we are pleased to hear your comments and questions. Cordially, (signature) (signature) James H. Lemon, Jr. Jeffrey L. Steele Vice Chairman of the Board President of the Fund December 10, 2005 Cyrus A. Ansary, an independent Director of the Fund since 1983, has been elected non-executive chairman of the Board. James H. Lemon, Jr., the previous chairman, has been elected vice chairman. Jeffrey L. Steele continues as president and principal executive officer. As independent Board chair, Mr. Ansary will chair Board meetings, including executive sessions of the independent Directors, and will be responsible for Board agendas, but will not have other executive or management responsibilities with the Fund. He will remain unaffiliated with the Fund's investment adviser, business manager and any of their affiliates. For current information about the Fund, visit americanfunds.com. Investment portfolio October 31, 2005 unaudited Percent of Percent of Industry sector holdings net assets Ten largest holdings net assets Financials 21.98% JPMorgan Chase 2.88% Industrials 12.00 Chevron 2.80 Health care 10.42 General Electric 2.75 Energy 9.89 Exxon Mobil 2.66 Consumer staples 9.00 Citigroup 2.32 Consumer discretionary 8.87 BellSouth 2.08 Utilities 7.26 Bank of America 1.97 Information technology 7.17 SBC Communications 1.88 Telecommunication services 6.97 Bristol-Myers Squibb 1.83 Materials 3.81 Hewlett-Packard 1.69 Miscellaneous .37 Convertible securities .08 Short-term securities and other assets less liabilities 2.18 Market value Percent of Common stocks -- 97.74% Shares (000) net assets Energy -- 9.89% Apache Corp. 4,000,000 $ 255,320 .34% Baker Hughes Inc. 3,410,000 187,414 .25 Chevron Corp. 36,879,800 2,104,730 2.80 ConocoPhillips 12,915,500 844,415 1.13 EOG Resources, Inc. 5,300,000 359,234 .48 Exxon Mobil Corp. 35,576,600 1,997,270 2.66 Halliburton Co. 5,925,000 350,168 .47 Marathon Oil Corp. 13,482,612 811,114 1.08 Schlumberger Ltd. 4,540,000 412,096 .55 Sunoco, Inc. 1,350,000 100,575 .13 7,422,336 9.89 Materials -- 3.81% Air Products and Chemicals, Inc. 4,000,000 228,960 .30 Alcoa Inc. 19,150,000 465,154 .62 Ashland Inc. 1,830,000 97,923 .13 E.I. du Pont de Nemours and Co. 11,300,000 471,097 .63 International Paper Co. 19,133,800 558,324 .74 MeadWestvaco Corp. 4,391,200 115,137 .15 PPG Industries, Inc. 4,100,000 245,877 .33 Temple-Inland Inc. 1,400,000 51,562 .07 Weyerhaeuser Co. 9,950,000 630,233 .84 2,864,267 3.81 Industrials -- 12.00% 3M Co. 4,550,000 $ 345,709 .46% Avery Dennison Corp. 2,700,000 152,955 .20 Boeing Co. 10,700,000 691,648 .92 Caterpillar Inc. 2,450,000 128,845 .17 Deere & Co. 4,638,100 281,440 .38 Deluxe Corp. 2,200,000 73,326 .10 Dover Corp. 2,000,000 77,960 .10 Eaton Corp. 1,200,000 70,596 .09 Emerson Electric Co. 5,000,000 347,750 .46 Fluor Corp. 536,500 34,121 .05 General Dynamics Corp. 1,475,000 171,543 .23 General Electric Co. 60,950,000 2,066,814 2.75 Illinois Tool Works Inc. 3,350,000 283,946 .38 Ingersoll-Rand Co. Ltd., Class A 3,400,000 128,486 .17 Lockheed Martin Corp. 4,750,000 287,660 .38 Northrop Grumman Corp. 11,650,000 625,023 .83 Pitney Bowes Inc. 8,514,900 358,307 .48 R.R. Donnelley & Sons Co. 6,112,300 214,053 .29 Raytheon Co. 4,000,000 147,800 .20 Southwest Airlines Co. 7,500,000 120,075 .16 Tyco International Ltd. 22,975,000 606,310 .81 Union Pacific Corp. 1,400,000 96,852 .13 United Parcel Service, Inc., Class B 11,044,100 805,557 1.07 United Technologies Corp. 17,400,000 892,272 1.19 9,009,048 12.00 Consumer discretionary -- 8.87% Best Buy Co., Inc. 10,425,000 461,410 .61 Carnival Corp., units 6,650,000 330,306 .44 Dana Corp. 6,130,000 46,036 .06 Federated Department Stores, Inc. 1,401,750 86,025 .11 Gannett Co., Inc. 1,500,000 93,990 .13 Gap, Inc. 5,710,545 98,678 .13 General Motors Corp. 24,138,400 661,392 .88 Genuine Parts Co. 8,545,000 379,142 .51 Harley-Davidson Motor Co. 6,650,000 329,374 .44 Home Depot, Inc. 4,000,000 164,160 .22 Johnson Controls, Inc. 2,600,000 176,930 .24 Knight-Ridder, Inc. 1,100,000 58,718 .08 Limited Brands, Inc. 19,930,000 398,799 .53 Lowe's Companies, Inc. 20,075,000 1,219,958 1.63 McDonald's Corp. 7,000,000 221,200 .29 Newell Rubbermaid Inc. 3,659,400 84,130 .11 NIKE, Inc., Class B 1,150,000 $ 96,658 .13% ServiceMaster Co. 8,750,000 110,075 .15 Target Corp. 15,500,000 863,195 1.15 TJX Companies, Inc. 21,750,000 468,278 .62 VF Corp. 3,800,000 198,550 .26 Walt Disney Co. 4,500,000 109,665 .15 6,656,669 8.87 Consumer staples -- 9.00% Albertson's, Inc. 10,000,000 251,100 .33 Avon Products, Inc. 16,400,000 442,636 .59 Coca-Cola Co. 17,500,000 748,650 1.00 ConAgra Foods, Inc. 8,269,600 192,434 .26 General Mills, Inc. 8,040,000 388,010 .52 H.J. Heinz Co. 16,717,000 593,453 .79 Kellogg Co. 7,200,000 318,024 .42 Kimberly-Clark Corp. 10,250,000 582,610 .78 PepsiCo, Inc. 12,225,000 722,253 .96 Procter & Gamble Co. 3,540,000 198,205 .26 Sara Lee Corp. 24,300,000 433,755 .58 Unilever NV (New York registered) 2,800,000 196,868 .26 Walgreen Co. 15,550,000 706,436 .94 Wal-Mart Stores, Inc. 20,750,000 981,683 1.31 6,756,117 9.00 Health care -- 10.42% Abbott Laboratories 27,050,000 1,164,502 1.55 Aetna Inc. 1,150,000 101,844 .14 Amgen Inc./1/ 2,750,000 208,340 .28 Applera Corp. 5,593,000 135,742 .18 Becton, Dickinson and Co. 1,650,000 83,738 .11 Bristol-Myers Squibb Co. 64,935,000 1,374,674 1.83 Cardinal Health, Inc. 11,325,000 707,926 .94 CIGNA Corp. 1,000,000 115,870 .15 Eli Lilly and Co. 21,045,000 1,047,831 1.40 Guidant Corp. 1,646,900 103,755 .14 Johnson & Johnson 4,900,000 306,838 .41 McKesson Corp. 2,500,000 113,575 .15 Medtronic, Inc. 5,500,000 311,630 .42 Merck & Co., Inc. 21,000,000 592,620 .79 Pfizer Inc 27,575,000 599,480 .80 Schering-Plough Corp. 13,418,600 272,934 .36 Wyeth 13,000,000 579,280 .77 7,820,579 10.42 Financials -- 21.98% AFLAC Inc. 2,000,000 $ 95,560 .13% Allstate Corp. 7,068,300 373,136 .50 American Express Co. 3,450,000 171,707 .23 American International Group, Inc. 14,800,000 959,040 1.28 Aon Corp. 3,150,000 106,627 .14 Bank of America Corp. 33,740,000 1,475,788 1.97 Bank of New York Co., Inc. 29,650,000 927,749 1.24 Citigroup Inc. 38,021,000 1,740,601 2.32 Fannie Mae 25,145,000 1,194,890 1.59 Freddie Mac 11,440,000 701,844 .93 Hartford Financial Services Group, Inc. 3,275,000 261,181 .35 HSBC Holdings PLC (ADR) 10,272,000 809,023 1.08 J.P. Morgan Chase & Co. 58,986,560 2,160,088 2.88 Jefferson-Pilot Corp. 4,243,900 232,905 .31 Lincoln National Corp. 6,950,000 351,739 .47 Marsh & McLennan Companies, Inc. 24,070,000 701,640 .93 National City Corp. 4,250,000 136,977 .18 SLM Corp. 2,100,000 116,613 .15 St. Paul Travelers Companies, Inc. 15,220,000 685,357 .91 SunTrust Banks, Inc. 3,500,000 253,680 .34 U.S. Bancorp 12,675,000 374,927 .50 Wachovia Corp. 6,000,000 303,120 .40 Washington Mutual, Inc. 27,850,000 1,102,860 1.47 Wells Fargo & Co. 20,440,000 1,230,488 1.64 XL Capital Ltd., Class A 520,000 33,311 .04 16,500,851 21.98 Information technology -- 7.17% Applied Materials, Inc. 11,500,000 188,370 .25 Automatic Data Processing, Inc. 7,450,000 347,617 .46 Dell Inc./1/ 2,500,000 79,700 .11 Electronic Data Systems Corp. 3,000,000 69,930 .09 First Data Corp. 4,350,000 175,957 .23 Hewlett-Packard Co. 45,200,000 1,267,408 1.69 Intel Corp. 12,050,000 283,175 .38 International Business Machines Corp. 12,550,000 1,027,594 1.37 Linear Technology Corp. 5,400,000 179,334 .24 Microsoft Corp. 42,500,000 1,092,250 1.45 Oracle Corp./1/ 13,541,943 171,712 .23 Texas Instruments Inc. 12,835,300 366,448 .49 Xilinx, Inc. 5,500,000 131,725 .18 5,381,220 7.17 Telecommunication services -- 6.97% AT&T Corp. 29,325,999 $ 580,068 .77% BellSouth Corp. 60,169,000 1,565,597 2.08 SBC Communications Inc. 59,250,000 1,413,113 1.88 Sprint Nextel Corp. 33,750,000 786,713 1.05 Verizon Communications Inc. 28,270,000 890,788 1.19 5,236,279 6.97 Utilities -- 7.26% Ameren Corp. 2,707,664 142,423 .19 American Electric Power Co., Inc. 9,500,000 360,620 .48 Cinergy Corp. 1,000,000 39,900 .05 Consolidated Edison, Inc. 3,600,000 163,800 .22 Dominion Resources, Inc. 10,210,000 776,777 1.04 DTE Energy Co. 2,500,000 108,000 .14 Duke Energy Corp. 13,440,000 355,891 .47 Exelon Corp. 13,575,000 706,307 .94 FirstEnergy Corp. 9,133,635 433,848 .58 FPL Group, Inc. 12,258,000 527,829 .70 NiSource Inc. 4,900,000 115,885 .16 Pinnacle West Capital Corp. 3,479,738 145,314 .19 PPL Corp. 4,600,000 144,164 .19 Progress Energy, Inc. 5,879,418 256,284 .34 Public Service Enterprise Group Inc. 9,300,000 584,877 .78 Puget Sound Energy, Inc. 2,800,000 60,032 .08 Southern Co. 13,000,000 454,870 .61 Xcel Energy Inc. 4,000,000 73,320 .10 5,450,141 7.26 Miscellaneous -- 0.37% Other common stocks in initial period of acquisition 274,741 .37 Total common stocks (cost: $59,724,572,000) 73,372,248 97.74 Units or principal Convertible Securities -- 0.08% amount Consumer discretionary -- 0.06% General Motors Corp., Series B, 5.25% convertible senior debentures 2032 $2,442,000 40,293 .06 Health care -- 0.02% Baxter International Inc. 7.00% convertable preferred 2006 300,000 $ 16,251 .02 Total convertible securities (cost: $76,850,000) 56,544 .08 Principal amount Short-term securities -- 1.91% (000) Bank of America Corp. 3.72%-3.98% due 11/15-12/7/2005 $ 95,000 94,739 .12 Bank of New York Co., Inc. 3.93% due 11/30/2005 24,300 24,220 .03 CAFCO, LLC 3.65% due 11/8/2005/2/ 29,400 29,376 .04 Clipper Receivables Co., LLC 3.65%-3.83% due 11/3-12/2/2005/2/ 67,000 66,882 .09 Coca-Cola Co. 3.58%-3.64% due 11/7/2005 58,275 58,234 .08 DuPont (E.I.) de Nemours & Co. 3.85% due 12/2/2005 17,700 17,639 .02 Edison Asset Securitization LLC 3.74% due 11/4/2005/2/ 21,000 20,991 .03 Federal Home Loan Bank 3.61%-3.72% due 11/14-12/21/2005 82,200 81,967 .11 Gannett Co. 3.74%-3.86% due 11/9-12/6/2005 /2/ 111,200 110,950 .15 Hershey Co. 3.74%-3.83% due 11/14-11/16/2005 /2/ 41,800 41,731 .05 International Bank for Reconstruction and Development 3.65% due 12/19/2005 50,000 49,742 .07 International Lease Finance Corp. 3.73% due 11/18/2005 39,700 39,626 .05 Medtronic Inc. 3.73% due 11/1/2005 /2/ 12,700 12,699 .02 PepsiCo Inc. 3.71% due 11/4/2005 /2/ 11,200 11,195 .01 Pfizer Inc 3.71% due 11/17-11/21/2005 /2/ 80,000 79,846 .11 Private Export Funding Corp. 3.65%_3.77% due 11/9-12/5/2005 /2/ 86,680 86,550 .11 Procter & Gamble Co. 3.63%-4.05% due 11/30-1/20/2006 /2/ 148,800 147,944 .20 SBC Communications Inc. 3.80% due 11/16/2005 /2/ 28,800 28,751 .04 SunTrust Banks Inc. 3.78% due 12/2/2005 30,000 29,996 .04 Target Corp. 3.95% due 11/21/2005 25,000 24,942 .03 Tennessee Valley Authority 3.63% due 12/15/2005 50,000 49,750 .07 Triple-A One Funding Corp. 3.89%-3.95% due 11/22/2005 /2/ 82,400 82,203 .11 U.S. Treasury Bills 3.415%-3.44% due 12/1/2005 $ 57,400 $ 57,245 .08% United Parcel Service Inc. 3.72% due 12/5/2005 42,900 42,742 .06 Variable Funding Capital Corp. 3.68%-3.77% due 11/4-11/8/2005 /2/ 60,000 59,973 .08 Wal-Mart Stores Inc. 3.71% due 11/2/2005 /2/ 33,000 32,993 .04 Wells Fargo & Co. 3.93% due 12/2/2005 50,000 50,000 .07 Total short-term securities (cost: $1,432,954,000) 1,432,926 1.91 Total investment securities (cost: $61,234,376,000) 74,861,718 99.73 Other assets less liabilities 204,775 .27 Net assets $ 75,066,493 100.00% "Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed. /1/ Security did not produce income during the last 12 months. /2/ Restricted securities that can be resold only to institutional investors. In practice, these securities are typically as liquid as unrestricted securities in the portfolio. The total value of all restricted securities was $812,084,000, which represented 1.08% of the net assets of the Fund. ADR = American Depositary Receipts See Notes to Financial Statements Financial statements Statement of assets and liabilities at October 31, 2005 unaudited (dollars and shares in thousands, except per-share amounts) Assets: Investment securities at market (cost: $61,234,376) $74,861,718 Cash 520 Receivables for: Sales of investments $170,726 Sales of Fund's shares 64,510 Dividends and interest 143,558 378,794 75,241,032 Liabilities: Payables for: Purchases of investments 18,265 Repurchases of Fund's shares 90,142 Management services 15,247 Services provided by affiliates 49,349 Deferred Directors' and Advisory Board compensation 1,285 Other fees and expenses 251 174,539 Net assets at October 31, 2005 $75,066,493 Net assets consist of: Capital paid in on shares of capital stock $60,313,566 Undistributed net investment income 400,093 Undistributed net realized gain 725,492 Net unrealized appreciation 13,627,342 Net assets at October 31, 2005 $75,066,493 Total authorized capital stock -- 4,000,000 shares, $.001 par value (2,472,583 total shares outstanding) Shares Net asset value Net assets outstanding per share /1/ Class A $61,281,843 2,016,846 $30.38 Class B 2,913,441 96,436 30.21 Class C 3,014,855 99,967 30.16 Class F 2,556,874 84,307 30.33 Class 529-A 707,643 23,309 30.36 Class 529-B 159,531 5,275 30.24 Class 529-C 252,140 8,340 30.23 Class 529-E 39,839 1,316 30.26 Class 529-F 23,966 790 30.33 Class R-1 39,095 1,293 30.23 Class R-2 707,227 23,454 30.15 Class R-3 1,711,311 56,578 30.25 Class R-4 932,882 30,779 30.31 Class R-5 725,846 23,893 30.38 /1/ Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for classes A and 529-A, for which the maximum offering prices per share were $32.24 and $32.21, respectively. See Notes to Financial Statements Statement of operations for the six months ended October 31, 2005 unaudited (dollars in thousands) Investment income: Income: Dividends (net of non-U.S. withholding tax of $680) $966,329 Interest 34,426 $1,000,755 Fees and expenses: /1/ Investment advisory services 74,720 Business management services 27,745 Distribution services 119,570 Transfer agent services 27,017 Administrative services 10,098 Reports to shareholders 1,458 Registration statement and prospectus 1,233 Postage, stationery and supplies 3,760 Directors' and Advisory Board compensation 472 Auditing and legal 264 Custodian 225 Other 43 Total fees and expenses before reimbursements/waivers 266,605 Less reimbursement/waiver of fees and expenses: Investment advisory services 7,472 Business management services 2,775 Administrative services 347 Total fees and expenses after reimbursements/waivers 256,011 Net investment income 744,744 Net realized gain and change in unrealized appreciation on investments: Net realized gain on investments 415,133 Net change in unrealized appreciation on investments 872,375 Net realized gain and change in unrealized appreciation on investments 1,287,508 Net increase in net assets resulting from operations $2,032,252 /1/ Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. See Notes to Financial Statements Financial statements Statements of changes in net assets (dollars in thousands) Six months Year ended ended October 31, April 30, 2005* 2005 Operations: Net investment income $ 744,744 $ 1,547,614 Net realized gain on investments 415,133 547,062 Net change in unrealized appreciation on investments 872,375 2,329,367 Net increase in net assets resulting from operations 2,032,252 4,424,043 Dividends and distributions paid to shareholders: Dividends from net investment income (715,498) (1,378,347) Distributions from net realized gain on investments -- (559,578) Total dividends and distributions paid to shareholders (715,498) (1,937,925) Capital share transactions (706,052) 5,169,240 Total increase in net assets 610,702 7,655,358 Net assets: Beginning of period 74,455,791 66,800,433 End of period (including undistributed net investment income: $400,093 and $370,847, respectively) $75,066,493 $74,455,791 * Unaudited See Notes to Financial Statements Notes to financial statements unaudited 1. Organization and significant accounting policies Organization -- Washington Mutual Investors Fund (the "Fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The Fund's investment objective is to produce current income and to provide an opportunity for growth of principal consistent with sound common stock investing. The Fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica(R) savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The Fund's share classes are described below: Initial sales Contingent deferred sales Share class charge charge upon redemption Conversion feature Classes A & 529-A Up to None (except 1% for certain None 5.75% redemptions within one year of purchase without an initial sales charge) Classes B and 529-B None Declines from 5% to 0% Classes B and 529-B for redemptions within convert to classes six years of purchase A and 529-A, respectively, after eight years Class C None 1% for redemptions within Class C converts to one year of purchase Class F after 10 years Class 529-C None 1% for redemptions within None one year of purchase Class 529-E None None None Classes F and 529-F None None None Classes R-1, R-2, R-3, R-4 and R-5 None None None CollegeAmerica is a registered trademark of and sponsored by the Virginia College Savings Plan.(SM) Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class. Significant accounting policies -- The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Fund: Security valuation -- Equity securities are valued at the official closing price of, or 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. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the Fund's Board of Directors. Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Security transactions and related investment income -- Security transactions are recorded by the Fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. Class allocations -- Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class. Dividends and distributions to shareholders -- Dividends and distributions paid to shareholders are recorded on the ex-dividend date. 2. Federal income taxation and distributions The Fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The Fund is not subject to income taxes to the extent such distributions are made. Distributions -- Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; and amortization of premiums. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Fund for financial reporting purposes. The Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes. As of October 31, 2005, the cost of investment securities for Federal income tax purposes was $61,268,430,000. During the six months ended October 31, 2005, the Fund reclassified $42,000,000 from undistributed net realized gains to capital paid in on shares of capital stock to align financial reporting with tax reporting. As of October 31, 2005, the components of distributable earnings on a tax basis were as follows (dollars in thousands): Undistributed net investment income $ 401,974 Undistributed long-term capital gains 758,895 Gross unrealized appreciation on investment securities 16,258,231 Gross unrealized depreciation on investment securities (2,664,943) Net unrealized appreciation on investment securities 13,593,288 During the six months ended October 31, 2005, the Fund realized, on a tax basis, a net capital gain of $422,776,000. The tax character of distributions paid to shareholders was as follows (dollars in thousands): 6 months ended October 31, 2005 Year ended April 30, 2005 Distri- - Distri- Distri- butions Distri- butions butions from Total butions from Total from long-term distri- from long-term distri- ordinary capital butions ordinary capital butions Share class income gains paid income gains paid Class A $610,557 -- $610,557 $1,200,617 $465,497 $1,666,114 Class B 17,916 -- 17,916 34,980 21,983 56,963 Class C 17,593 -- 17,593 33,095 22,268 55,363 Class F 24,678 -- 24,678 44,042 18,476 62,518 Class 529-A 6,389 -- 6,389 10,025 4,223 14,248 Class 529-B 815 -- 815 1,410 1,056 2,466 Class 529-C 1,293 -- 1,293 2,093 1,539 3,632 Class 529-E 300 -- 300 470 238 708 Class 529-F 231 -- 231 306 137 443 Class R-1 208 -- 208 295 197 492 Class R-2 3,965 -- 3,965 6,084 4,018 10,102 Class R-3 15,434 -- 15,434 23,111 11,401 34,512 Class R-4 8,651 -- 8,651 10,400 4,362 14,762 Class R-5 7,468 -- 7,468 11,419 4,183 15,602 Total $715,498 -- $715,498 $1,378,347 $559,578 $1,937,925 3. Fees and transactions with related parties Business management services -- The Fund has a business management agreement with Washington Management Corporation (WMC). Under this agreement, WMC provides services necessary to carry on the Fund's general administrative and corporate affairs. These services encompass matters relating to general corporate governance, regulatory compliance and monitoring of the Fund's contractual service providers, including custodian operations, shareholder services and Fund share distribution functions. Under the agreement, all expenses chargeable to the Class A shares of the Fund, including compensation to the business manager, shall not exceed 1% of the average net assets of the Fund on an annual basis. The agreement provides for monthly fees, accrued daily, based on a declining series of annual rates beginning with 0.175% on the first $3 billion of daily net assets and decreasing to 0.030% on such assets in excess of $77 billion. WMC is currently waiving 10% of business management services fees. During the six months ended October 31, 2005, total business management services fees waived by WMC were $2,775,000. As a result, the fee shown on the accompanying financial statements of $27,745,000, which was equivalent to an annualized rate of 0.072%, was reduced to $24,970,000, or 0.065% of average daily net assets. During the six months ended October 31, 2005, WMC paid the Fund's investment adviser $1,165,000 for performing various fund accounting services for the Fund and for The American Funds Tax-Exempt Series I, another registered investment company for which WMC serves as business manager. Johnston, Lemon & Co. Incorporated (JLC), a wholly owned subsidiary of The Johnston-Lemon Group, Incorporated (JLG) (parent company of WMC), earned $270,000 on its retail sales of shares and distribution plans of the Fund. JLC received no brokerage commissions resulting from the purchases and sales of securities for the investment account of the Fund. Investment advisory services -- Capital Research and Management Company (CRMC), the Fund's investment adviser, is the parent company of American Funds Service Company (AFS), the Fund's transfer agent, and American Funds Distributors, Inc. (AFD), the principal underwriter of the Fund's shares. The Investment Advisory Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.225% on the first $3 billion of daily net assets and decreasing to 0.177% on such assets in excess of $89 billion. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended October 31, 2005, total investment advisory services fees waived by CRMC were $7,472,000. As a result, the fee shown on the accompanying financial statements of $74,720,000, which was equivalent to an annualized rate of 0.193%, was reduced to $67,248,000, or 0.174% of average daily net assets. Class-specific fees and expenses -- Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below: Distribution services -- The Fund has adopted plans of distribution for all shareclasses, except Class R-5. Under the plans, the Board of Directors approves certain categories of expenses that are used to finance activities primarily intended to sell Fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted on the following page. In some cases, the Board of Directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD for providing certain shareholder services. The remaining amounts available to be paid under each plan are paid to selling dealers to compensate them for their selling activities. For classes A and 529-A, the Board of Directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of October 31, 2005, there were no unreimbursed expenses subject to reimbursement for classes A or 529-A. Share class Currently approved limits Plan limits Class A 0.25% 0.25% Class 529-A 0.25 0.50 Classes B and 529-B 1.00 1.00 Classes C, 529-C and R-1 1.00 1.00 Class R-2 0.75 1.00 Classes 529-E and R-3 0.50 0.75 Classes F, 529-F and R-4 0.25 0.50 Transfer agent services -- The Fund has a transfer agent agreement with AFS for classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below. Administrative services -- The Fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than classes A and B. Each relevant share class pays CRMC annual fees of up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the Fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended October 31, 2005, the total administrative services fees paid by CRMC were $2,000 and $345,000 for classes R-1 and R-2, respectively. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party. Expenses under the agreements described on the previous page for the six months ended October 31, 2005, were as follows (dollars in thousands):
Administrative services CRMC Commonwealth Tansfer admini- Transfer of Virginia Distribution agent strative agent administrative Share class services services services services services Class A $ 74,803 $25,734 Not applicable Not applicable Not applicable Class B 14,950 1,283 Not applicable Not applicable Not applicable Class C 15,200 | $2,188 $ 325 Not applicable Class F 3,275 | 1,431 179 Not applicable Class 529-A 625 | 352 47 $345 Class 529-B 791 Included 81 31 79 Class 529-C 1,224 in 125 40 123 Class 529-E 97 admini- 20 3 20 Class 529-F 2 strative 12 1 12 Class R-1 188 services 27 12 Not applicable Class R-2 2,582 | 514 1,266 Not applicable Class R-3 4,696 | 1,390 423 Not applicable Class R-4 1,137 | 688 17 Not applicable Class R-5 Not applicable | 340 7 Not applicable Total $119,570 $27,017 $7,168 $2,351 $579
Deferred Directors' and Advisory Board compensation -- Since the adoption of the deferred compensation plan in 1994, Independent Directors and Advisory Board members may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the Fund, are treated as if invested in shares of the Fund or other American Funds. These amounts represent general, unsecured liabilities of the Fund and vary according to the total returns of the selected funds. Directors' and Advisory Board compensation of $472,000, shown on the accompanying financial statements, includes $427,000 in current fees (either paid in cash or deferred) and a net increase of $45,000 in the value of the deferred amounts. Affiliated officers and Directors -- All officers of the Fund and all of its Directors who are affiliated with WMC receive no compensation directly from the Fund in such capacities. 4. Investment transactions The Fund made purchases and sales of investment securities, excluding short-term securities, of $4,712,538,000 and $4,940,733,000, respectively, during the six months ended October 31, 2005. 5. Capital share transactions Capital share transactions in the Fund were as follows (dollars and shares in thousands): Six months ended October 31, 2005
Reinvestments of dividends Net (decrease) Sales and distributions Repurchases increase Share class Amount Shares Amount Shares Amount Shares Amount Shares Class A $2,654,131 86,364 $572,016 18,334 $(4,219,454) (137,362) $(993,307) (32,664) Class B 103,266 3,381 17,089 551 (160,558) (5,256) (40,203) (1,324) Class C 221,809 7,273 16,529 533 (267,371) (8,771) (29,033) (965) Class F 330,532 10,772 21,642 695 (343,608) (11,215) 8,566 252 Class 529-A 78,865 2,568 6,388 205 (20,777) (675) 64,476 2,098 Class 529-B 11,869 388 815 26 (3,714) (121) 8,970 293 Class 529-C 30,517 999 1,293 42 (9,192) (300) 22,618 741 Class 529-E 4,571 149 299 10 (891) (29) 3,979 130 Class 529-F 3,406 111 231 7 (1,034) (34) 2,603 84 Class R-1 9,585 315 207 6 (5,505) (181) 4,287 140 Class R-2 147,323 4,828 3,965 128 (76,370) (2,500) 74,918 2,456 Class R-3 328,155 10,731 15,408 496 (363,845) (12,009) (20,282) (782) Class R-4 186,425 6,077 8,648 278 (105,056) (3,426) 90,017 2,929 Class R-5 152,305 4,982 7,251 232 (63,217) (2,064) 96,339 3,150 Total net increase (decrease) $4,262,759 138,938 $671,781 21,543 $(5,640,592) (183,943) $(706,052) (23,462)
Year ended April 30, 2005 Reinvestments of dividends Sales and distributions Repurchases Net increase Share class Amount Shares Amount Shares Amount Shares Amount Shares Class A $ 7,395,134 249,062 $1,569,990 52,168 $(6,916,372) (232,386) $2,048,752 68,844 Class B 451,234 15,339 54,564 1,818 (248,702) (8,408) 257,096 8,749 Class C 753,447 25,600 52,449 1,750 (367,965) (12,434) 437,931 14,916 Class F 915,300 30,894 55,610 1,850 (459,462) (15,406) 511,448 17,338 Class 529-A 202,543 6,808 14,247 473 (26,138) (877) 190,652 6,404 Class 529-B 35,804 1,212 2,466 82 (4,797) (161) 33,473 1,133 Class 529-C 71,331 2,409 3,631 120 (11,208) (378) 63,754 2,151 Class 529-E 11,939 402 708 24 (1,592) (54) 11,055 372 Class 529-F 9,916 334 442 15 (1,268) (42) 9,090 307 Class R-1 23,143 783 488 16 (6,379) (217) 17,252 582 Class R-2 325,408 11,018 10,099 337 (98,064) (3,317) 237,443 8,038 Class R-3 862,578 29,133 34,456 1,146 (241,511) (8,100) 655,523 22,179 Class R-4 564,507 18,978 14,724 489 (92,164) (3,088) 487,067 16,379 Class R-5 279,665 9,418 15,114 502 (86,075) (2,890) 208,704 7,030 Total net increase (decrease) $11,901,949 401,390 $1,828,988 60,790 $(8,561,697) (287,758) $5,169,240 174,422 Includes exchanges between share classes of the Fund.
Financial highlights Income (loss) from Dividends and investment operations distributions Ratio Ratio of ex- of ex- penses Net penses to aver- Ratio gains to aver- age net of net (losses) Divi- age net assets income Net on secur Total dends Total Net assets after (loss) Asset Net ities from (from Distri- divi- Net assets before reim- to value invest- (both invest- net butions dends asset end of reim- burse- aver- begin- ment realized ment invest- (from and value, Total period burse- ments/ age ning of income and un- oper- ment capital distri- end of return (in ments/ waivers net period (loss) realized) ations income) gains) butions period millions) waivers assets Class A: 6 months ended 10/31/2005 $29.85 $ .31 $ .52 $ .83 $(.30) $ -- $ (.30) $30.38 2.79% $61,282 .60% .58% 2.01% Year ended 4/30/2005 28.79 .67 1.22 1.89 (.60) (.23) (.83) 29.85 6.55 61,185 .61 .60 2.24 Year ended 4/30/2004 23.99 .59 4.94 5.53 (.54) (.19) (.73) 28.79 23.19 57,027 .64 .64 2.14 Year ended 4/30/2003 28.37 .55 (4.35) (3.80) (.54) (.04) (.58) 23.99 (13.36) 43,701 .67 .67 2.28 Year ended 4/30/2002 29.80 .50 (.75) (.25) (.54) (.64) (1.18) 28.37 (.73) 50,669 .65 .65 1.72 Year ended 4/30/2001 29.14 .57 3.17 3.74 (.58) (2.50) (3.08) 29.80 13.54 48,700 .65 .65 1.95 Class B: 6 months ended 10/31/2005 29.69 .19 .51 .70 (.18) -- (.18) 30.21 2.35 2,913 1.37 1.34 1.25 Year ended 4/30/2005 28.64 .43 1.22 1.65 (.37) (.23) (.60) 29.69 5.75 2,902 1.38 1.37 1.47 Year ended 4/30/2004 23.88 .37 4.92 5.29 (.34) (.19) (.53) 28.64 22.25 2,549 1.40 1.40 1.36 Year ended 4/30/2003 28.25 .36 (4.32) (3.96) (.37) (.04) (.41) 23.88 (14.01) 1,538 1.45 1.45 1.52 Year ended 4/30/2002 29.71 .25 (.72) (.47) (.35) (.64) (.99) 28.25 (1.50) 1,097 1.41 1.41 .88 Year ended 4/30/2001 29.11 .29 3.22 3.51 (.41) (2.50) (2.91) 29.71 12.67 289 1.42 1.42 .99 Class C: 6 months ended 10/31/2005 29.64 .18 .51 .69 (.17) -- (.17) 30.16 2.33 3,015 1.43 1.40 1.19 Year ended 4/30/2005 28.59 .41 1.22 1.63 (.35) (.23) (.58) 29.64 5.69 2,991 1.46 1.45 1.39 Year ended 4/30/2004 23.84 .35 4.92 5.27 (.33) (.19) (.52) 28.59 22.19 2,460 1.48 1.48 1.27 Year ended 4/30/2003 28.22 .35 (4.33) (3.98) (.36) (.04) (.40) 23.84 (14.10) 1,214 1.51 1.51 1.46 Year ended 4/30/2002 29.70 .21 (.73) (.52) (.32) (.64) (.96) 28.22 (1.68) 678 1.51 1.51 .72 Period from 3/15/2001 to 4/30/2001 28.32 (.02) 1.40 1.38 -- -- -- 29.70 4.87 36 .23 .23 (.07) Class F: 6 months ended 10/31/2005 29.80 .30 .52 .82 (.29) -- (.29) 30.33 2.73 2,557 .65 .63 1.96 Year ended 4/30/2005 28.74 .64 1.22 1.86 (.57) (.23) (.80) 29.80 6.47 2,505 .69 .68 2.15 Year ended 4/30/2004 23.95 .56 4.94 5.50 (.52) (.19) (.71) 28.74 23.13 1,917 .71 .71 2.04 Year ended 4/30/2003 28.33 .53 (4.34) (3.81) (.53) (.04) (.57) 23.95 (13.42) 899 .74 .74 2.24 Year ended 4/30/2002 29.79 .42 (.72) (.30) (.52) (.64) (1.16) 28.33 (.89) 444 .78 .78 1.46 Period from 3/15/2001 to 4/30/2001 28.37 .01 1.41 1.42 -- -- -- 29.79 5.01 16 .12 .12 .04 Class 529-A: 6 months ended 10/31/2005 29.83 .30 .52 .82 (.29) -- (.29) 30.36 2.71 708 .68 .65 1.93 Year ended 4/30/2005 28.76 .63 1.23 1.86 (.56) (.23) (.79) 29.83 6.47 633 .71 .70 2.12 Year ended 4/30/2004 23.97 .56 4.95 5.51 (.53) (.19) (.72) 28.76 23.07 426 .71 .71 2.03 Year ended 4/30/2003 28.36 .54 (4.35) (3.81) (.54) (.04) (.58) 23.97 (13.38) 199 .70 .70 2.29 Period from 2/15/2002 to 4/30/2002 27.71 .04 .75 .79 (.14) -- (.14) 28.36 2.82 49 .16 .16 .14 Class 529-B: 6 months ended 10/31/2005 29.72 .17 .51 .68 (.16) -- (.16) 30.24 2.27 159 1.52 1.50 1.09 Year ended 4/30/2005 28.68 .38 1.21 1.59 (.32) (.23) (.55) 29.72 5.52 148 1.58 1.57 1.26 Year ended 4/30/2004 23.91 .32 4.96 5.28 (.32) (.19) (.51) 28.68 22.08 110 1.59 1.59 1.15 Year ended 4/30/2003 28.34 .32 (4.35) (4.03) (.36) (.04) (.40) 23.91 (14.18) 53 1.62 1.62 1.36 Period from 2/19/2002 to 4/30/2002 27.25 (.01) 1.22 1.21 (.12) -- (.12) 28.34 4.38 11 .30 .30 (.02) Class 529-C: 6 months ended 10/31/2005 29.71 .17 .51 .68 (.16) -- (.16) 30.23 2.28 252 1.51 1.49 1.10 Year ended 4/30/2005 28.67 .37 1.22 1.59 (.32) (.23) (.55) 29.71 5.54 226 1.57 1.56 1.27 Year ended 4/30/2004 23.91 .32 4.93 5.25 (.30) (.19) (.49) 28.67 22.06 156 1.58 1.58 1.15 Year ended 4/30/2003 28.33 .32 (4.34) (4.02) (.36) (.04) (.40) 23.91 (14.18) 69 1.61 1.61 1.38 Period from 2/15/2002 to 4/30/2002 27.71 (.01) .75 .74 (.12) -- (.12) 28.33 2.65 15 .32 .32 (.03) Class 529-E: 6 months ended 10/31/2005 $29.74 $.25 $ .51 $ .76 $(.24)$ -- $(.24) $30.26 2.53% 40 1.00% .97% 1.61% Year ended 4/30/2005 28.69 .53 1.22 1.75 (.47) (.23) (.70) 29.74 6.09 35 1.05 1.04 1.79 Year ended 4/30/2004 23.92 .46 4.94 5.40 (.44) (.19) (.63) 28.69 22.68 23 1.06 1.06 1.68 Year ended 4/30/2003 28.34 .45 (4.35) (3.90) (.48) (.04) (.52) 23.92 (13.73) 9 1.08 1.08 1.92 Period from 3/1/2002 to 4/30/2002 28.59 .01 (.13) (.12) (.13) -- (.13) 28.34 (.44) 1 .17 .17 .04 Class 529-F: 6 months ended 10/31/2005 29.79 .33 .52 .85 (.31) -- (.31) 30.33 2.82 24 .51 .49 2.10 Year ended 4/30/2005 28.74 .60 1.22 1.82 (.54) (.23) (.77) 29.79 6.35 21 .80 .79 2.03 Year ended 4/30/2004 23.96 .53 4.95 5.48 (.51) (.19) (.70) 28.74 23.00 11 .81 .81 1.90 Period from 9/16/2002 to 4/30/2003 23.98 .32 .10 .42 (.40) (.04) (.44) 23.96 1.85 3 .82 .82 2.25 Class R-1: 6 months ended 10/31/2005 29.71 .17 .52 .69 (.17) -- (.17) 30.23 2.31 39 1.48 1.45 1.13 Year ended 4/30/2005 28.68 .40 1.21 1.61 (.35) (.23) (.58) 29.71 5.62 34 1.50 1.47 1.35 Year ended 4/30/2004 23.92 .35 4.93 5.28 (.33) (.19) (.52) 28.68 22.16 16 1.52 1.49 1.25 Period from 5/29/2002 to 4/30/2003 28.52 .32 (4.46) (4.14) (.42) (.04) (.46) 23.92 (14.50) 8 1.71 1.51 1.50 Class R-2: 6 months ended 10/31/2005 29.64 .18 .51 .69 (.18) -- (.18) 30.15 2.30 707 1.54 1.42 1.16 Year ended 4/30/2005 28.60 .41 1.22 1.63 (.36) (.23) (.59) 29.64 5.68 622 1.57 1.44 1.38 Year ended 4/30/2004 23.88 .35 4.91 5.26 (.35) (.19) (.54) 28.60 22.12 371 1.69 1.45 1.26 Period from 5/31/2002 to 4/30/2003 28.46 .33 (4.40) (4.07) (.47) (.04) (.51) 23.88 (14.29) 96 1.78 1.47 1.58 Class R-3: 6 months ended 10/31/2005 29.73 .25 .52 .77 (.25) -- (.25) 30.25 2.58 1,711 .97 .95 1.64 Year ended 4/30/2005 28.68 .56 1.21 1.77 (.49) (.23) (.72) 29.73 6.17 1,705 .95 .94 1.89 Year ended 4/30/2004 23.93 .46 4.94 5.40 (.46) (.19) (.65) 28.68 22.68 1,009 1.07 1.07 1.63 Period from 6/4/2002 to 4/30/2003 27.81 .41 (3.74) (3.33) (.51) (.04) (.55) 23.93 (11.94) 125 1.11 1.09 1.95 Class R-4: 6 months ended 10/31/2005 29.78 .30 .52 .82 (.29) -- (.29) 30.31 2.73 933 .68 .65 1.93 Year ended 4/30/2005 28.73 .64 1.22 1.86 (.58) (.23) (.81) 29.78 6.46 830 .68 .67 2.14 Year ended 4/30/2004 23.95 .56 4.94 5.50 (.53) (.19) (.72) 28.73 23.11 330 .70 .70 2.01 Period from 5/20/2002 to 4/30/2003 28.78 .51 (4.74) (4.23) (.56) (.04) (.60) 23.95 (14.66) 71 .74 .73 2.32 Class R-5: 6 months ended 10/31/2005 29.85 .35 .52 .87 (.34) -- (.34) 30.38 2.88 726 .38 .35 2.23 Year ended 4/30/2005 28.79 .73 1.22 1.95 (.66) (.23) (.89) 29.85 6.78 619 .38 .37 2.45 Year ended 4/30/2004 23.99 .65 4.94 5.59 (.60) (.19) (.79) 28.79 23.49 395 .39 .39 2.36 Period from 5/15/2002 to 4/30/2003 28.84 .57 (4.78) (4.21) (.60) (.04) (.64) 23.99 (14.57) 230 .41 .41 2.51 Six months Year ended April 30 ended October 31, 2005 2005 2004 2003 2002 2001 Portfolio turnover rate for all classes of shares 6% 16% 12% 21% 22% 25% Based on operations for the period shown (unless otherwise noted) and, accordingly, may not be representative of a full year. Based on average shares outstanding. Total returns exclude all sales charges, including contingent deferred sales charges. The ratios in this column reflect the impact, if any, of certain reimbursements/waivers from CRMC and WMC. During some of the periods shown, CRMC and WMC reduced fees for investment advisory services and business management services for all share classes. In addition, during the start-up period for the retirement plan share classes (except Class R-5), CRMC agreed to pay a portion of the fees related to transfer agent services. Unaudited. Annualized.
See Notes to Financial Statements Expense example unaudited As a shareholder of the Fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2005 through October 31, 2005). Actual expenses: The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees. Hypothetical example for comparison purposes: The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated on the previous page. In addition, your ending account value would also be lower by the amount of these fees. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning Ending Expenses Annual- account account paid ized value value during expense 5/1/2005 10/31/2005 period /1/ ratio Class A -- actual return $1,000.00 $1,027.91 $2.96 .58% Class A -- assumed 5% return 1,000.00 1,022.28 2.96 .58 Class B -- actual return 1,000.00 1,023.55 6.83 1.34 Class B -- assumed 5% return 1,000.00 1,018.45 6.82 1.34 Class C -- actual return 1,000.00 1,023.27 7.14 1.40 Class C -- assumed 5% return 1,000.00 1,018.15 7.12 1.40 Class F --actual return 1,000.00 1,027.34 3.22 .63 Class F -- assumed 5% return 1,000.00 1,022.03 3.21 .63 Class 529-A -- actual return 1,000.00 1,027.14 3.32 .65 Class 529-A -- assumed 5% return 1,000.00 1,021.93 3.31 .65 Class 529-B -- actual return 1,000.00 1,022.69 7.65 1.50 Class 529-B -- assumed 5% return 1,000.00 1,017.64 7.63 1.50 Class 529-C -- actual return 1,000.00 1,022.80 7.60 1.49 Class 529-C -- assumed 5% return 1,000.00 1,017.69 7.58 1.49 Class 529-E -- actual return 1,000.00 1,025.33 4.95 .97 Class 529-E -- assumed 5% return 1,000.00 1,020.32 4.94 .97 Class 529-F -- actual return 1,000.00 1,028.16 2.50 .49 Class 529-F -- assumed 5% return 1,000.00 1,022.74 2.50 .49 Class R-1 -- actual return 1,000.00 1,023.10 7.39 1.45 Class R-1 -- assumed 5% return 1,000.00 1,017.90 7.38 1.45 Class R-2 -- actual return 1,000.00 1,023.02 7.24 1.42 Class R-2 -- assumed 5% return 1,000.00 1,018.05 7.22 1.42 Class R-3 -- actual return 1,000.00 1,025.78 4.85 .95 Class R-3 -- assumed 5% return 1,000.00 1,020.42 4.84 .95 Class R-4 -- actual return 1,000.00 1,027.33 3.32 .65 Class R-4 -- assumed 5% return 1,000.00 1,021.93 3.31 .65 Class R-5 -- actual return 1,000.00 1,028.76 1.79 .35 Class R-5 -- assumed 5% return 1,000.00 1,023.44 1.79 .35 /1/ Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (184), and divided by 365 (to reflect the one-half-year period). Approval of renewal of Investment Advisory Agreement On June 16, 2005, the Fund's Board of Directors (the "Board"), including the Independent Directors, approved the renewal of the Fund's Investment Advisory Agreement (the "Agreement") with Capital Research and Management Company ("CRMC") for an additional one-year term through August 31, 2006. The Board approved renewal of the Agreement following the recommendation of the Fund's Governance Committee (the "Committee"), which is comprised of all of the Fund's Independent Directors. The information, material factors and conclusions that formed the basis for the Committee's recommendation and the Board's subsequent approval are described below. 1. Information received Materials reviewed -- During the course of each year, the Independent Directors receive a wide variety of materials relating to the services provided by CRMC, including reports on the investment results of the Fund; portfolio composition; portfolio trading practices; shareholder services; and other information relating to the nature, extent and quality of services provided by CRMC to the Fund. In addition, supplementary information requested and reviewed by the Committee included extensive materials regarding the Fund's investment results, advisory fee and expense comparisons (including comparisons to advisory fees charged by an affiliate of CRMC to institutional clients), financial and profitability information regarding CRMC, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management and other services to the Fund. Review process -- The Committee received assistance and advice regarding legal and industry standards from independent counsel to the Fund and its Directors. The Directors also reviewed independent reports providing analysis and comparative data related to the Fund's fees and operations. The Committee discussed the renewal of the Agreement with a senior representative of CRMC, as well as Fund officers, and in a private session with independent legal counsel. In deciding to recommend the renewal of the Agreement, the Committee did not identify any single or particular piece of information that, in isolation, was a controlling factor. This summary describes the more important, but not all, of the factors considered by the Board and the Committee. 2. Nature, extent and quality of services CRMC, its personnel and its resources -- The Board and the Committee considered the depth and quality of CRMC's investment management process, including its research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address the recent growth in complex-wide assets under management. The Board and the Committee also considered that CRMC made available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, results and portfolio accounting. They recognized CRMC's commitment to investing in information technology supporting investment management and compliance. They recognized CRMC's continuing need to attract and retain qualified personnel and to maintain and enhance its resources and systems. Other services -- The Board and the Committee considered CRMC's (or its affiliates') policies, procedures and systems to ensure compliance with applicable laws and regulations and its commitment to these programs; its efforts to keep the Directors informed; and its attention to matters that may involve conflicts of interest with the Fund. The Board and the Committee also considered the nature, extent, quality and cost of distribution and shareholder services provided by CRMC to the Fund under various agreements with the Fund. Ultimately, the Board and the Committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and will continue to benefit the Fund and its shareholders. 3. Investment results The Board and the Committee examined both the short-term and long-term investment results of the Fund in light of its primary objective of providing income and growth of principal through investments in quality common stocks. In particular, the Board and the Committee considered analytical data developed by Lipper that compared the performance of the Fund relative to the Lipper Large-Cap Value Funds Index, the Lipper Growth & Income Funds Index and the Standard & Poor's 500 Composite Index. It was noted that although the Fund underperformed the comparisons in certain one-year periods, its return was superior over the 10-year period. The Board and the Committee ultimately concluded that CRMC's record in managing the Fund indicates that its continued advisory services will benefit the Fund and its shareholders. 4. Advisory fees and total expenses The Board and the Committee reviewed the advisory fees and total expenses of the Fund (as a percentage of average net assets) and compared such amounts with the average fee and expense levels of other similar mutual funds. In particular, the Board and the Committee reviewed data that compared the median advisory fees of other large-cap value funds, with the advisory fees of the Fund, noting that the Fund's advisory fees were lower. The Board and Committee also reviewed data comparing expense information on the largest 25 actively-managed funds, regardless of investment classification or objective, and noted that the Fund ranked 9 out of 25 for lowest total expenses and 6 out of 25 when excluding Rule 12b-1 service fees. They also noted the voluntary fee waiver that CRMC put into effect complex-wide during the past year. Based on the information presented by CRMC, members of the Board and the Committee then determined, in their business judgment, that the relatively low level of the fees charged by CRMC will benefit the Fund and its shareholders. 5. Adviser costs, level of profits and economies of scale The Board and the Committee reviewed information regarding CRMC's costs of providing services to the American Funds as a whole, as well as the resulting level of profits to CRMC, noting that those results were comparable to the reported results of several large publicly held investment management companies. The Committee noted that it had also received information during the past year regarding the structure and manner in which CRMC's investment professionals were compensated and CRMC's view of the relationship of such compensation to the attraction and retention of quality personnel. The Board and the Committee considered CRMC's willingness to invest in technology, infrastructure and staff to reinforce and offer new services to accommodate changing regulatory requirements. They further considered the Fund's advisory fee structure in relation to the Fund's total assets. The fee structure includes a series of breakpoints with an additional breakpoint incorporated into the fee structure at a total Fund asset level of $89 billion. The Board and the Committee concluded that the Fund's cost structure was reasonable and that CRMC was sharing economies of scale with the Fund and its shareholders. 6. Ancillary benefits The Board and the Committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC's relationship with the Fund and other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC's affiliated transfer agent; sales charges and distribution fees received and retained by the Fund's principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC's institutional management affiliate. The Board and the Committee reviewed CRMC's portfolio trading practices, noting that, while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the American Funds, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. 7. Conclusions Based on their review, including their consideration of each of the factors referred to above, the Board and the Committee concluded that the nature, extent and quality of the services rendered to the Fund by CRMC continued to be excellent and favored renewal of the Agreement. The Board and the Committee concluded that the Agreement continued to be fair and reasonable to the Fund and its shareholders, that the Fund's shareholders received reasonable value in return for the advisory fees and other amounts paid to CRMC by the Fund, and that the renewal of the Agreement was in the best interests of the Fund and its shareholders. Other share class results unaudited Class B, Class C, Class F and Class 529 Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For the most current information and month-end results, visit americanfunds.com. Average annual total returns for periods ended September 30, 2005 (the most recent calendar quarter): Life of 1 year 5 years class Class B shares -- first sold 3/15/00 Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%, payable only if shares are sold within six years of purchase +2.61% +4.20% +5.99% Not reflecting CDSC +7.61% +4.54% +6.12% Class C shares -- first sold 3/15/01 Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase +6.54% -- +3.94% Not reflecting CDSC +7.54% -- +3.94% Class F shares /1/ -- first sold 3/15/01 Not reflecting annual asset-based fee charged by sponsoring firm +8.35% -- +4.75% Class 529-A shares /2/ -- first sold 2/15/02 Reflecting 5.75% maximum sales charge +2.08% -- +3.93% Not reflecting maximum sales charge +8.31% -- +5.64% Class 529-B shares /2/ -- first sold 2/19/02 Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase +2.44% -- +4.50% Not reflecting CDSC +7.44% -- +5.24% Class 529-C shares /2/ -- first sold 2/15/02 Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase +6.43% -- +4.74% Not reflecting CDSC +7.43% -- +4.74% Class 529-E shares /1/, /2/ -- first sold 3/1/02 +7.96% -- +4.41% Class 529-F shares /1/, /2/ -- first sold 9/16/02 Not reflecting annual asset-based fee charged by sponsoring firm +8.34% -- +11.56% The Fund's investment adviser and business manager each waived 5% of their management fees from September 1, 2004 through March 31, 2005, and increased the waivers to 10% on April 1, 2005. Fund results shown reflect the waivers, without which they would have been lower. Please see the Financial Highlights table on page 22 for details. /1/ These shares are sold without any initial or contingent deferred sales charge. /2/ Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee. Offices Offices of the Fund and of the business manager Washington Management Corporation 1101 Vermont Avenue, NW Washington, DC 20005-3521 202/842-5665 Investment adviser Capital Research and Management Company 333 South Hope Street Los Angeles, CA 90071-1406 135 South State College Boulevard Brea, CA 92821-5823 Transfer agent American Funds Service Company (Please write to the address nearest you.) P.O. Box 25065 Santa Ana, CA 92799-5065 P.O. Box 659522 San Antonio, TX 78265-9522 P.O. Box 6007 Indianapolis, IN 46206-6007 P.O. Box 2280 Norfolk, VA 23501-2280 Custodian of assets JPMorgan Chase Bank 270 Park Avenue New York, NY 10017-2070 Counsel Dechert LLP 1775 I Street, NW Washington, DC 20006-2401 Independent registered public accounting firm PricewaterhouseCoopers LLP 350 South Grand Avenue Los Angeles, CA 90071-2889 Principal underwriter American Funds Distributors, Inc. 333 South Hope Street Los Angeles, CA 90071-1406 There are several ways to invest in Washington Mutual Investors Fund. Class A shares are subject to a 5.75% maximum up-front sales charge that declines for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. Other share classes, which are generally not available for certain employer-sponsored retirement plans, have no up-front sales charges but are subject to additional annual expenses and fees. Annualized expenses for Class B shares were 0.76 percentage points higher than for Class A shares; Class B shares convert to Class A shares after eight years of ownership. If redeemed within six years, Class B shares may also be subject to a contingent deferred sales charge ("CDSC") of up to 5% that declines over time. Class C shares were subject to annualized expenses 0.82 percentage points higher than those for Class A shares and a 1% CDSC if redeemed within the first year after purchase. Class C shares convert to Class F shares after 10 years. Class F shares, which are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisers, had higher annualized expenses (by 0.05 percentage points) than did Class A shares, and an annual asset-based fee charged by the sponsoring firm. Expenses are deducted from income earned by the Fund. As a result, dividends and investment results will differ for each share class. Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds and CollegeAmerica. This and other important information is contained in the Fund's prospectus and the CollegeAmerica program description, which can be obtained from your financial adviser and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com. If you reside in a state other than Virginia, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica. Talk to your tax adviser. CollegeAmerica is distributed by American Funds Distributors and sold through unaffiliated intermediaries. "American Funds Proxy Voting Guidelines" -- which describes how we vote proxies relating to portfolio securities -- is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov, on the American Funds website or upon request by calling AFS. The Fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites. Washington Mutual Investors Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC's Public Reference Room in Washington, DC (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS. This report is for the information of shareholders of Washington Mutual Investors Fund, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the Fund. If used as sales material after December 31, 2005, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter. (logo American Funds(R)) (logo Virginia College Savings Plan(SM)) (logo Washington Mutual Investors Fund) Washington Mutual Investors Fund, Inc. 1101 Vermont Avenue, NW Washington, DC 20005 202/842-5665 Lit. No. MFGESR-901-1205P (S4913) (recycle log) Printed on recycled paper The Capital Group Companies American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust ITEM 2 - Code of Ethics Not applicable for filing of Semiannual Reports to Shareholders. ITEM 3 - Audit Committee Financial Expert Not applicable for filing of Semiannual Reports to Shareholders. ITEM 4 - Principal Accountant Fees and Services Not applicable for filing of Semiannual Reports to Shareholders. ITEM 5 - Audit Committee of Listed Registrants Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934. ITEM 6 - Schedule of Investments The full schedule of investments for the Fund is included as part of the report to shareholders filed under Item 1 of this Form. ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 8 - Portfolio Managers of Equity Securities by Closed End Management Investment Companies Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company. ITEM 10 - Submission of Matters to a Vote of Security Holders There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors since the registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The registrant has a Governance Committee comprised solely of persons who are not considered "interested persons" of the registrant within the meaning of the Investment Company Act of 1940. The committee periodically reviews such issues as the Board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board. Such suggestions must be sent in writing to the Governance Committee of the registrant, c/o the registrant's Secretary, and should be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the Governance Committee. ITEM 11 - Controls and Procedures (a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. (b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal half-year (the Registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12 - Exhibits (a) The Code of Ethics - not applicable for filing of Semiannual Reports to Shareholders. (b) The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Washington Mutual Investors Fund, Inc. By /s/ Jeffrey L. Steele, President and PEO Date: December 28, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ Jeffrey L. Steele, President and PEO Date: December 28, 2005 By /s/ Michael W. Stockton, Vice President and Treasurer Date: December 28, 2005 EX-99.CERT 2 cert302.txt EX-99. CERT CERTIFICATION I, Jeffrey L. Steele, certify that: 1. I have reviewed this report on Form N-CSR of Washington Mutual Investors Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 28, 2005 /s/Jeffrey L. Steele, President and Principal Executive Officer Washington Mutual Investors Fund, Inc. CERTIFICATION I, Michael W. Stockton, certify that: 1. I have reviewed this report on Form N-CSR of Washington Mutual Investors Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 28, 2005 /s/ Michael W. Stockton, Vice President, Treasurer and PFO Washington Mutual Investors Fund, Inc. EX-99.906CERT 3 cert906.txt EX-99.906CERT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 JEFFREY L. STEELE, President and PEO, and Michael W. Stockton, Vice President and Treasurer of Washington Mutual Investors Fund, Inc. (the "Registrant"), each certify to the best of his or her knowledge that: 1) The Registrant's periodic report on Form N-CSR for the period ended April 30, 2005 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Principal Financial Officer WASHINGTON MUTUAL WASHINGTON MUTUAL INVESTORS FUND, INC. INVESTORS FUND, INC. /s/ Jeffrey L. Steele, President /s/ Michael W. Stockton, Vice President, And Principal Executive Officer Treasurer and Principal Financial Officer Date: December 28, 2005 Date: December 28, 2005 A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to WASHINGTON MUTUAL INVESTORS FUND, INC. and will be retained by WASHINGTON MUTUAL INVESTORS FUND, INC. and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----