In the 20-year period ending 12/31/2015, the Washington Mutual Investors FundSM (WMIF) beat its benchmark, the Standard & Poor’s (S&P) 500 Index. Although there have been periods when the fund lagged, thanks to a risk-sensitive approach, the fund produced greater wealth than an index investment during this volatile 20-year period.
An initial investment of $10,000 would have grown to:invalid DAM asset reference. path: /content/dam/cgc/shared-content/images/infographics/icon-WMIF-480x183.jpg
All dollar amounts are based on a hypothetical investment of $10,000 on 12/31/1995. Total returns are based on the 20-year period from 12/31/1995 to 12/31/2015.
GRAY: Hypothetical index investment
BLUE: Investment with low downside capture
Following the bursting of the tech bubble, the economy suffered a huge blow, and the S&P 500 index lost 47.4% of its total value. But with a lower downside capture ratio, the Washington Mutual Investors Fund lost just 16.5% of its value, avoiding much of the crash. While the fund trailed the index going into the downturn, it emerged in the lead.
The financial crisis of late 2007 left the S&P 500 index with a 55.3% loss, while the Washington Mutual Investors Fund lost 54% of its value. Going into this downturn, the fund had a 11.8% advantage over the index, and thanks to low downside capture, that advantage grew to 14.9%.
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. Investing for short periods makes losses more likely.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. Returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund .
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.
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.
Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
Standard & Poor's 500 Composite Index is a market capitalization-weighted index based on the average weighted results of approximately 500 widely held common stocks.