Washington Mutual Investors Fund

DEFINED CONTRIBUTION FOCUS FUNDS
 

Seeking to invest in the bluest of blue chip companies

Better results

The value of a hypothetical lifetime investment in the fund would have been more than double that of the S&P 500 and Morningstar peers.

A 70-year legacy of success

Bar chart shows the hypothetical lifetime value of $10,000 investments: Washington Mutual Investors Fund, $29,912,763; S&P 500 Index, $13,259,648; Morningstar U.S. Fund Large Blend, $12,016,895 (reference footnote *); and Morningstar U.S. Fund Large Value, $7,966,216 (reference footnote *).
Value of hypothetical $10,000 investments since the fund began on July 31, 1952, through December 31, 2022.

Downside resilience

The fund’s disciplined approach to investing can help limit the impact of declining markets. It led the S&P 500 in all but 3 of the 21 bear markets/corrections in its history.

Fund excess returns over S&P 500 when the index fell 10% or more, as of December 31, 2022

Bar chart shows Washington Mutual Investors Fund's excess returns over S&P 500 when the index fell 10% or more, as of December 31, 2022. When the S&P 500 declined 10% or more, the fund's average excess return was 4.75%, and the fund’s median excess return was 2.19%. When the S&P 500 declined 20% or more, the fund's average excess return was 8.43%, and the fund's median excess return was 3.49%.

Low fees

The fund's expense ratio was less than half of the median for its peer group‡ 1

Expense ratio1

Bar chart compares expense ratios: Washington Mutual Investors Fund, 0.26%; Morningstar fee-level peer group median 0.63%
RECOGNITION
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Morningstar Medalist RatingTM

of Gold§

A “most used” defined

 contribution plan domestic

equity fund**

How the fund got its name

The fund’s rigorous screening criteria has its roots in a Washington D.C. court case following the Great Depression, which established a list of high-quality stocks appropriate for trust investors.

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*The Morningstar U.S. Fund Large Blend and Large Value data represent category averages. While Morningstar places the fund in the “blend” category, we believe the fund’s qualities are attractive to many investors seeking a U.S. Large Value allocation in their DC plan. The Morningstar category average includes all share classes for the funds in the category. While American Funds R-6 shares do not include fees for advisor compensation and service provider payments, the share classes represented in the Morningstar category have varying fee structures and can include these and other fees and charges resulting in higher expenses. Morningstar U.S. Fund Large Value funds invest primarily in large-cap stocks that are less expensive or growing more slowly than other large-cap stocks as measured by low price ratios, high dividend yields and low growth rates for earnings, sales, book value and cash flow. Large Blend funds invest in a portfolio of large-cap stocks in which neither growth nor value predominates. Large-cap is defined as the top 70% of the capitalization of the U.S. equity market. 

 

Source: Capital Group. Corrections and bear market periods are defined as price declines of at least 10% (correction) or at least 20% (bear markets) in the index from the fund's inception on July 31, 1952, through December 31, 2022, with 100% recovery between declines. There were 21 periods in which the index fell 10% or more and 10 when it fell 20% or more.

 

The fund’s Class R-6 expense ratio is as of the most recent prospectus available at the time of publication. The peer group expense ratio median was calculated based on funds in the following Morningstar Fee Level Group — Distribution category: Large Cap Retirement, Large, as of December 31, 2022.

 

§As of July 11, 2023, based on Class R-6 shares.

 

**Source: “Mutual funds most used by DC plans, by asset class 2022,” Pensions & Investments, November 2, 2022, based on assets as of June 30, 2022, U.S. equity category.

 

Unless otherwise indicated, data is as of December 31, 2022, and fund data is for Class R-6 shares.

 

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. The index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
 

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. Investing for short periods makes losses more likely. Prices and returns will vary, so investors may lose money. View mutual fund expense ratios and returns.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

The Morningstar Medalist Rating™ is the summary expression of Morningstar's forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar's conviction in those products' investment merits and determines the Medalist Rating they're assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst's qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/. The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

Capital Group offers a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of financial professional compensation and service provider payments. Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.

There may have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Each S&P Index ("Index") shown is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower and net expenses higher. Please refer to capitalgroup.com for more information. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

Certain share classes were offered after the inception dates of some funds. Results for these shares prior to the dates of first sale are hypothetical based on the original share class results without a sales charge, adjusted for typical estimated expenses. 

  • Class R-6 shares were first offered on 5/1/2009.
Results for certain funds with an inception date after the share class inception also include hypothetical returns because those funds' shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.
  1. Expense ratios are as of each fund's prospectus available at the time of publication.

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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2024 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.