<PAGE>
- ------------------------
PROSPECTUS
- ------------------------
MAY 1, 2000
Stratton Growth Fund
Stratton Monthly Dividend REIT Shares
Stratton Small-Cap Value Fund
[GRAPHIC]
-----------------------------
STRATTON
MUTUAL FUNDS
-----------------------------
Stability . Strategy. Success
The Securities and Exchange Commission has not approved or disapproved these
securities nor has it passed upon the accuracy or adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
<PAGE>
STRATTON MUTUAL FUNDS
Stratton Growth Fund, Inc.
Stratton Monthly Dividend REIT Shares, Inc.
Stratton Small-Cap Value Fund
PROSPECTUS
May 1, 2000
Plymouth Meeting Executive Campus
610 W. Germantown Pike, Suite 300
Plymouth Meeting, PA 19462-1050
(610) 941-0255
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Fund Summaries............................................................. 2
Fee Table.................................................................. 8
Financial Highlights....................................................... 9
Investment Policies and Risk Considerations................................ 11
Investment Advisor......................................................... 12
Pricing Fund Shares........................................................ 13
How to Buy Fund Shares..................................................... 14
How to Redeem Fund Shares.................................................. 16
Exchange Privilege......................................................... 17
Retirement Plans........................................................... 18
Tax Treatment: Dividends and Distributions................................. 18
</TABLE>
1
<PAGE>
FUND SUMMARIES This Prospectus offers shares of the following funds:
Stratton Growth Fund, Inc. ("SGF"); Stratton Monthly
Dividend REIT Shares, Inc. ("SMDS"); and Stratton Small-Cap
Value Fund ("SSCV") of The Stratton Funds, Inc.
Stratton Growth
Fund
Investment Possible growth of capital with current income from interest
Objectives and dividends as a secondary objective.
Principal The fund normally invests in common stocks, and securities
Strategy convertible into common stock. These common stocks,
including dividend-paying common stocks, are of well-
established U.S. companies that the investment advisor
believes are undervalued. Value stocks are stocks that
appear to be under-priced based on traditional measures such
as lower price-to-earnings ratios and price-to-book ratios.
The investment advisor believes that undervalued companies
with good earnings prospects have superior appreciation
potential with reasonable levels of risk.
The advisor focuses on common stocks of companies with
strong cash flow. Companies often share excess cash flow by
paying above-average dividends to shareholders. The advisor
looks at characteristics such as strong dividend growth
rates and healthy dividend coverage when selecting potential
buy candidates. The investment advisor believes that
companies which consistently strive to increase their
dividends tend to offer the potential of above average
returns. Fundamental analysis is conducted on other
important characteristics such as the earnings outlook,
management strengths, and industry competitive position.
All of the above mentioned characteristics are reviewed when
eliminating a stock from the portfolio if, when compared to
its peers, a stock has unfavorable future prospects. The
investment advisor continuously reviews economic and social
conditions so that the fund's portfolio has the greatest
possible potential for capital growth, consistent with
reasonable levels of risk. SGF hopes to achieve steady,
stable growth of principal and dividend income.
Principal Risks There are risks involved with any investment, but the risks
associated with an investment in the fund include:
. Stock market risk, or the risk that the price of
securities held by the fund will rise or fall due to
various conditions or circumstances which may be
unpredictable
. Loss of part or all of your money invested in the fund
. The portfolio manager's skill in assessing the potential
of the stocks the fund buys
Bar Chart and The following bar chart and performance table provide some
Performance indication of the risks of investing in the fund by showing
Table changes in the fund's performance from year to year and
showing how the fund's average annual returns compare with
those of a broad measure of market performance. Both the bar
chart and performance table assume reinvestment of dividends
and distributions. As with all mutual funds, past
performance is not a prediction of future performance.
2
<PAGE>
[GRAPH]
Annual Returns (%)
1999 (9.29)%
1998 11.46%
1997 36.06%
1996 14.17%
1995 37.68%
1994 7.19%
1993 6.41%
1992 6.71%
1991 22.18%
1990 (6.72)%
Calendar Year
During the ten years ended December 31, 1999, the highest return for a quarter
was 15.47% for the quarter ended December 31, 1998, and the lowest return was
(12.95%) for the quarter ended September 30, 1998.
Performance Table
Average Annual Total Returns as of December 31, 1999
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
SGF......................................... (9.29%) 16.68% 11.61%
S & P 500*.................................. 20.89% 28.24% 17.98%
S & P/BARRA Value**......................... 12.72% 22.83% 15.54%
</TABLE>
--------
* The S&P 500 Index is a widely recognized, unmanaged index
of 500 common stocks that is generally considered to be
representative of the U.S. stock market as a whole.
** The S&P/BARRA Value Index is an unmanaged,
capitalization-weighted index of all stocks in the S&P
500 that have low price-to-book ratios.
Suitability
The fund may be a suitable investment for you if you:
. Desire an investment that focuses on growth and income.
. Are investing for retirement or other long-term goals.
. Can tolerate performance that varies from year to year.
3
<PAGE>
Stratton
Monthly
Dividend REIT
Shares
Investment A high rate of return from dividend and interest income on
Objective investments in common stock and securities convertible into
common stock.
Principal The fund invests at least 65% of its total assets in common
Strategy stocks and other equity securities of real estate investment
trusts ("REITs"). REITs were created to enable investors to
participate in the benefits of owning income-producing real
estate. REITs own many different types of properties, such
as apartment complexes, office buildings, hotels, health
care facilities, shopping centers, and shopping malls.
The fund is managed to provide a high level of monthly
income to its shareholders and therefore looks for companies
that have strong dividend payouts. The fund needs higher
yielding securities to maintain its own attractive dividend
payout. REITs satisfy this income requirement, while also
offering the potential for dividend growth and capital
appreciation. Investment decisions will be made on the basis
of an analysis of fundamentals of individual companies and
on relevant economic and social conditions.
Principal Risks There are risks involved with any investment, but the risks
associated with an investment in the fund include:
. Stock market risk, or the risk that the price of
securities held by the fund will rise or fall due to
various conditions or circumstances which may be
unpredictable.
. The cyclical nature of the real estate industry, which
subjects the real estate and real estate related
securities held by the fund to any market or economic
condition that may affect the value of real estate (up or
down).
. The fund is concentrated in REIT securities, which means
it may be subject to a greater risk of loss than a non-
concentrated mutual fund.
. Loss of part or all of your money invested in the fund.
. The portfolio manager's skill in assessing the potential
of the stocks the fund buys.
Bar Chart and The following bar chart and performance table provide some
Performance indication of the risks of investing in the fund by showing
Table changes in the fund's performance from year to year and
showing how the fund's average annual returns compare with
those of a broad measure of market performance. Both the bar
chart and performance table assume reinvestment of dividends
and distributions. As with all mutual funds, past
performance is not a prediction of future performance.
4
<PAGE>
[GRAPH]
Annual Returns (%)
1999 (6.25)%
1998 (11.75)%
1997 18.09%
1996 8.58%
1995 23.45%
1994 (12.13)%
1993 6.60%
1992 10.41%
1991 35.10%
1990 (3.83)%
Calendar Year
During the ten years ended December 31, 1999, the highest return for a quarter
was 12.83% for the quarter ended June 30, 1999, and the lowest return for a
quarter was (7.26%) for the quarter ended June 30, 1994.
Performance Table
Average Annual Total Returns as of December 31, 1999
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------- ------- --------
<S> <C> <C> <C>
SMDS........................................ (6.25%) 5.54% 5.81%
S & P 500*.................................. 20.89% 28.24% 17.98%
NAREIT Equity**............................. (4.62%) 8.09% 9.14%
</TABLE>
--------
* The S&P 500 Index is a widely recognized, unmanaged index
of 500 common stocks that is generally considered to be
representative of the U.S. stock market as a whole.
** The NAREIT Equity Index is an unmanaged index comprised
of 178 real estate investment trusts.
Suitability
The fund may be a suitable investment for you if you:
. Desire an investment that focuses on income.
. Are investing for retirement or other long-term goals.
. Can tolerate performance that varies from year to year.
5
<PAGE>
Stratton Small-
Cap Value Fund
Investment Dividend income and capital appreciation.
Objective
Principal Under normal market conditions, the fund invests at least
Strategy 80% of its assets in common stock and securities convertible
into common stock of small capitalization companies. In
selecting stocks for the fund to buy, small capitalization
companies are defined as companies with market
capitalizations, at the time of purchase, that are below the
market capitalization of the largest company in the Russell
2000 Index. These common stocks, including dividend-paying
common stocks, are of well-established U.S. companies that
the investment advisor believes are undervalued. Value
stocks are stocks that appear to be under-priced based on
traditional measures such as lower price-to-earnings ratios
and price-to-book ratios. The fund also invests in real
estate investment trusts.
Generally, small company stocks are considered more volatile
than large company stocks because they have limited product
lines and financial resources. Stocks of these companies may
experience more abrupt price movements than larger
capitalization stocks.
The fund's investment advisor employs a three-step process
that focuses on a stock's fundamental valuation, earnings
projections and, as a confirming factor, relative price
strength. Fundamental valuation is the largest component of
the process and takes into consideration both a company's
valuation relative to its peers and its valuation relative
to its private market value. The investment advisor believes
that undervalued companies with good earnings prospects have
superior appreciation potential with reasonable levels of
risk.
Securities in the portfolio that the investment advisor may
sell are those stocks with either poor earnings prospects
relative to their peers or stocks that have excessive
valuations relative to their peers.
Principal Risks There are risks involved with any investment, but the risks
associated with an investment in the fund include:
. Stock market risk, or the risk that the price of
securities held by the fund will rise or fall due to
various conditions or circumstances which may be
unpredictable.
. Small-cap stocks tend to have a higher degree of market
risk than large-cap stocks, due to lack of liquidity and
other reasons.
. The cyclical nature of the real estate industry, which
subjects the real estate and real estate related
securities held by the fund to any market or economic
condition that may affect the value of real estate (up or
down).
. Loss of part or all of your investment in the fund.
. The portfolio manager's skill in assessing the potential
of the stocks the fund buys.
6
<PAGE>
Bar Chart and The following bar chart and performance table provide some
Performance indication of the risks of investing in the fund by showing
Table changes in the fund's performance from year to year and
showing how the fund's average annual returns compare with
those of a broad measure of market performance. Both the bar
chart and performance table assume reinvestment of dividends
and distributions. As with all mutual funds, past
performance is not a prediction of future performance.
[GRAPH]
Annual Returns (%)
1999 (1.98)%
1998 (9.58)%
1997 42.37%
1996 14.96%
1995 27.27%
1994 (2.69)%
Calendar Year
During the six years ended December 31, 1999, the highest return for a quarter
was 17.06% for the quarter ended June 30, 1999, and the lowest return for a
quarter was (18.92%) for the quarter ended September 30, 1998.
Performance Table
Average Annual Total Returns as of December 31, 1999
<TABLE>
<CAPTION>
1 Year 5 Years Since Inception*
------ ------- ----------------
<S> <C> <C> <C>
SSCV................................ (1.98%) 13.05% 10.27%
Russell 2000**...................... 21.36% 15.04% 12.39%
</TABLE>
--------
* Performance of the fund is based on the period April 12,
1993 (commencement of operations) through December 31,
1999. Performance of The Frank Russell 2000 Index (the
"Russell 2000") is based on the period March 31, 1993
through December 31, 1999.
** The Russell 2000 is an unmanaged index comprised of the
smallest 2000 companies in the Russell 3000 Index,
representing approximately 11% of the Russell 3000 total
market capitalization. The Russell 3000 Index represents
approximately 98% of the investable U.S. equity market.
Suitability
The fund may be a suitable investment for you if you:
. Desire an investment that focuses on both growth and
income.
. Are investing for retirement or other long-term goals.
. Are willing to accept more market risk in return for the
potentially higher returns that may come from investing in
small-cap companies.
. Can tolerate performance that varies from year to year.
7
<PAGE>
FEE TABLE <TABLE>
<CAPTION>
SGF SMDS SSCV
---- ---- ----
<S> <C> <C> <C>
Annual Fund Operating Expenses:
-------------------------------
(as a percentage of average net assets)
Management Fees.......................... 0.75%/1/ 0.63%/1/ 0.75%/2/
Other Expenses........................... 0.41% 0.48% 0.33%
---- ---- ----
Total Fund Operating Expenses............ 1.16% 1.11% 1.08%
</TABLE>
Example
The following example illustrates the expenses that you
would pay on a $10,000 investment, assuming (1) a 5% annual
rate of return, (2) redemption at the end of each time
period, (3) all distributions are reinvested; and (4) each
fund's operating expenses remain the same:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
SGF.................................. $118 $368 $638 $1409
SMDS................................. $113 $353 $612 $1352
SSCV................................. $110 $343 $595 $1317
</TABLE>
--------
/1/Total Fund Operating Expenses for SGF and SMDS for the
fiscal year ended December 31, 1999, with fee waivers,
were 1.13% and 1.09%, respectively, of SGF's and SMDS'
average net assets. The investment advisor voluntarily
has agreed to waive annually $15,000 of its compensation
from SGF and SMDS to offset a portion of the cost of
certain administrative responsibilities delegated to PFPC
Inc. ("PFPC").
/2/This fee represents the basic management fee of 0.75%
payable to SSCV, subject to a performance adjustment. The
performance adjustment is a rolling 24-month comparison
to the Russell 2000. See "Investment Advisor" for a
further discussion. For the fiscal year ended December
31, 1999, the investment advisor received 0.59% of SSCV's
average net assets. Absent such performance adjustment,
the investment advisor would have received 0.75% of
SSCV's average net assets.
The purpose of the fee table is to help you understand the
various costs and expenses you will bear directly or
indirectly. In addition to the above fees, the funds'
transfer agent charges $9 for each redemption by wire
transfer. A more complete description of the various costs
and expenses of the funds is contained throughout this
Prospectus, in the Statement of Additional Information and
in the financial statements and related notes which appear
in the funds' Annual Report to Shareholders.
This example should not be considered a representation of
past or future expenses or performance. Actual expenses may
be more or less than those shown.
8
<PAGE>
FINANCIAL The financial highlights are intended to help you understand
HIGHLIGHTS each fund's financial performance during the periods stated.
Certain information reflects financial results for a single
fund share. "Total return" shows how much your investment in
a fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and
distributions. These figures have been audited by Tait,
Weller & Baker, certified public accountants, whose report,
along with the funds' financial statements is incorporated
by reference into the Statement of Additional Information
and is included in the funds' Annual Report to Shareholders
dated December 31, 1999, each of which may be obtained free
of charge by calling (800) 634-5726.
Stratton Growth Fund, Inc.
<TABLE>
<CAPTION>
Years Ended Years Ended
December 31, 7 Months May 31,
------------------------- Ended ----------------
1999 1998 1997 12/31/96 1996 1995
------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 34.07 $ 33.39 $ 27.00 $ 27.18 $ 22.35 $ 20.65
------- ------- ------- ------- ------- -------
Income From Investment
Operations
Net investment income.. 0.416 0.570 0.550 0.312 0.556 0.537
Net gains (losses) on
securities (both
realized and
unrealized)........... (3.516) 3.130 8.900 1.298 5.759 2.978
------- ------- ------- ------- ------- -------
Total from investment
operations.......... (3.100) 3.700 9.450 1.610 6.315 3.515
------- ------- ------- ------- ------- -------
Less Distributions
Dividends (from net
investment income).... (0.410) (0.590) (0.540) (0.580) (0.540) (0.540)
Distributions (from
capital gains)........ (1.330) (2.430) (2.520) (1.210) (0.945) (1.275)
------- ------- ------- ------- ------- -------
Total distributions.. (1.740) (3.020) (3.060) (1.790) (1.485) (1.815)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 29.23 $ 34.07 $ 33.39 $ 27.00 $ 27.18 $ 22.35
======= ======= ======= ======= ======= =======
Total Return............ (9.29%) 11.46% 36.06% 6.40% 29.62% 18.61%
Ratios/Supplemental Data
Net assets, end of
period (in 000's)..... $43,865 $63,323 $60,177 $44,801 $42,880 $31,719
Ratio of expenses to
average net assets.... 1.13% 1.07% 1.11% 1.17%/1/ 1.16% 1.31%
Ratio of net investment
income to average net
assets................ 1.21% 1.60% 1.87% 2.08%/1/ 2.28% 2.70%
Portfolio turnover
rate.................. 39.81% 38.02% 34.40% 20.32% 15.41% 42.54%
</TABLE>
- --------
/1/Annualized
9
<PAGE>
Stratton Monthly Dividend REIT Shares, Inc.
<TABLE>
<CAPTION>
11 Years Ended
Years Ended December 31, Months January 31,
-------------------------- Ended ------------------
1999 1998 1997 12/31/96 1996 1995
------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 24.78 $ 30.25 $ 27.43 $ 27.40 $ 24.84 $ 28.69
------- ------- -------- -------- -------- --------
Income From Investment
Operations
Net investment income.. 1.550 1.650 1.540 1.630 1.880 1.940
Net gains (losses) on
securities (both
realized and
unrealized)........... (3.010) (5.070) 3.200 0.160 2.600 (3.870)
------- ------- -------- -------- -------- --------
Total from investment
operations.......... (1.460) (3.420) 4.740 1.790 4.480 (1.930)
------- ------- -------- -------- -------- --------
Less Distributions
Dividends (from net
investment income).... (1.550) (1.650) (1.540) (1.630) (1.890) (1.920)
Distributions (in
excess of net
investment income).... -- (0.400) -- (0.130) (0.030) --
Return of capital...... (0.490) -- (0.380) -- -- --
------- ------- -------- -------- -------- --------
Total distributions.. (2.040) (2.050) (1.920) (1.760) (1.920) (1.920)
------- ------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 21.28 $ 24.78 $ 30.25 $ 27.43 $ 27.40 $ 24.84
======= ======= ======== ======== ======== ========
Total Return............ (6.25%) (11.75%) 18.09% 7.12% 18.98% (6.57%)
Ratios/Supplemental Data
Net assets, end of
period (in 000's)..... $59,413 $79,936 $101,956 $103,780 $129,267 $134,066
Ratio of expenses to
average net assets.... 1.09% 1.02% 1.02% 1.02%/1/ 0.99% 1.08%
Ratio of net investment
income to average net
assets................ 6.61% 5.95% 5.48% 6.94%/1/ 7.42% 7.71%
Portfolio turnover
rate.................. 13.94% 18.89% 42.47% 69.19% 53.30% 39.50%
</TABLE>
- --------
/1/Annualized
Stratton Small-Cap Value Fund
<TABLE>
<CAPTION>
Years Ended Years Ended
December 31, 9 Months March 31,
------------------------- Ended ----------------
1999 1998 1997/2/ 12/31/96/2/ 1996/2/ 1995/2/
------- ------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 20.11 $ 22.47 $ 16.79 $ 15.98 $ 12.94 $ 12.97
------- ------- ------- ------- ------- -------
Income From Investment
Operations
Net investment income.. 0.278 0.170 0.210 0.260 0.330 0.290
Net gains (losses) on
securities (both
realized and
unrealized)........... (0.678) (2.310) 6.800 1.740 3.040 (0.020)
------- ------- ------- ------- ------- -------
Total from investment
operations.......... (0.400) (2.140) 7.010 2.000 3.370 0.270
------- ------- ------- ------- ------- -------
Less Distributions
Dividends (from net
investment income).... (0.270) (0.180) (0.200) (0.270) (0.330) (0.300)
Distributions (from
capital gains)........ -- (0.040) (1.130) (0.920) -- --
------- ------- ------- ------- ------- -------
Total
distributions...... (0.270) (0.220) (1.330) (1.190) (0.330) (0.300)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 19.44 $ 20.11 $ 22.47 $ 16.79 $ 15.98 $ 12.94
======= ======= ======= ======= ======= =======
Total Return............ (1.98%) (9.58%) 42.37% 12.84% 26.18% 2.09%
Ratios/Supplemental Data
Net assets, end of
period (in 000's)..... $36,054 $42,789 $39,377 $21,691 $19,592 $14,058
Ratio of expenses to
average net assets.... 1.08% 1.56% 1.62% 1.29%/1/ 1.46% 2.12%
Ratio of net investment
income to average net
assets................ 1.29% 0.80% 1.09% 2.03%/1/ 2.28% 2.36%
Portfolio turnover
rate.................. 43.44% 35.74% 26.27% 35.86% 33.50% 30.20%
</TABLE>
/1/Annualized
- --------
/2/Adjusted for a 2-for-1 stock split declared by the Fund to shareholders of
record on December 17, 1997
10
<PAGE>
INVESTMENT The investment objective of SGF is fundamental and may not
POLICIES AND be changed without the vote of a majority of the fund's
RISK shares. The investment objectives of SMDS and SSCV are not
CONSIDERATIONS fundamental and may be changed by each fund's Board of
Directors. Unless otherwise stated in this Prospectus or the
Statement of Additional Information, each fund's investment
policies are not fundamental and may be changed without
shareholder approval. However, the funds intend to notify
shareholders before making any change in any policy or
restriction. Fundamental policies may not be changed without
shareholder approval. A complete list of each fund's
fundamental investment restrictions appears in the Statement
of Additional Information.
Risk Investments in small-cap companies have certain risks
Considerations associated with them. First and foremost is their greater
for SSCV earnings and price volatility in comparison to large
companies. Earnings risk is partially due to the
undiversified nature of small company business lines. The
fund attempts to counteract these concerns about investing
in small-cap companies by using strict purchase criteria.
One of these criteria stipulates that these companies must
have been sound and on-going entities for at least three
years. In addition, to be considered a buy candidate,
companies must be characterized as being undervalued
relative to their industry peers. Historically, undervalued
small companies have had a lower risk profile than the
overall small capitalization market.
Risk Each fund may invest in REITs. Equity REITs invest directly
Considerations in real property while mortgage REITs invest in mortgages on
for each Fund real property. REITs may be subject to certain risks
associated with the direct ownership of real estate
REITs including declines in the value of real estate, risks
related to general and local economic conditions,
overbuilding and increased competition, increases in
property taxes and operating expenses, and variations in
rental income. Generally, increases in interest rates will
decrease the value of high yielding securities and increase
the costs of obtaining financing, which could decrease the
value of the portfolio's investments. In addition, equity
REITs may be affected by changes in the value of the
underlying property owned by the trusts, while mortgage
REITs may be affected by the quality of credit extended.
Equity and mortgage REITs are dependent upon management
skill, are not diversified and are subject to the risks of
financing projects. REITs are also subject to heavy cash
flow dependency, defaults by borrowers, self-liquidation and
the possibility of failing to qualify for tax-free pass-
through of income under the Internal Revenue Code and to
maintain exemption from the Investment Company Act of 1940,
as amended.
REITs pay dividends to their shareholders based upon
available funds from operations. It is quite common for
these dividends to exceed the REIT's taxable earnings and
profits resulting in the excess portion of such dividends
being designated as a return of capital. A fund intends to
include the gross dividends from such REITs in its
distributions to shareholders and, accordingly, a portion of
the funds' distributions may also be designated as a return
of capital. For more information, please see the discussion
under "Tax Treatment: Dividends and Distributions."
11
<PAGE>
Temporary Although each fund normally seeks to remain fully invested
Investments in equity securities, each fund may invest temporarily up to
100% of its assets in certain short-term fixed income
securities. Such securities may be used to invest
uncommitted cash balances temporarily to maintain liquidity
to meet shareholder redemptions, or as a defensive measure
to protect capital. These securities include, but are not
limited to, obligations of the U.S. government, its agencies
and instrumentalities, commercial paper, certificates of
deposit, bankers acceptances and repurchase agreements. When
a fund invests for defensive purposes, the fund may not
achieve its investment objective.
For temporary defensive purposes, SGF may invest in non-
convertible preferred stocks, debt securities and domestic
corporate and government fixed income obligations without
limitation and, to the extent such investments are made, the
fund will not be achieving growth of capital.
- --------------------------------------------------------------------------------
INVESTMENT Stratton Management Company, with offices at Plymouth
ADVISOR Meeting Executive Campus, 610 W. Germantown Pike, Suite 300,
Plymouth Meeting, PA 19462-1050, is the funds' investment
advisor and manager and is a registered investment advisor.
Stratton Management provides investment advisory services
for a variety of individuals and institutions, and had
approximately $1.65 billion in assets under management as of
December 31, 1999.
James W. Stratton is the Chief Executive officer of Stratton
Management and has been primarily responsible for the day-
to-day investment management of SGF and SMDS since 1972 and
1980, respectively. Mr. Frank H. Reichel, III has been
primarily responsible for the day-to-day investment
management of SSCV since that fund's commencement of
operations in April of 1993.
Pursuant to Investment Advisory Agreements, Stratton
Management Company provides an investment program in
accordance with each respective fund's investment policies,
limitations and restrictions.
Investment For its advisory services, the investment advisor receives
Advisory Fee an annual fee of 0.75% of daily net assets of SGF and an
annual fee of 0.63% of daily net assets of SMDS. The
investment advisor voluntarily has agreed to waive annually
$15,000 of its fees from SGF and SMDS to offset a portion of
the fees that those funds will incur under administration
agreements with PFPC. See the Statement of Additional
Information for a detailed description of those fees. During
the fiscal year ended December 31, 1999, SGF and SMDS paid
the investment advisor fees at the effective annual rates of
0.72% and 0.60%, of each fund's respective average daily net
assets.
For its investment advisory services to SSCV, the investment
advisor receives a fee, payable monthly, at an annual rate
of 0.75% of average daily net assets, plus/minus a
performance fee adjustment.
The performance fee adjustment for SSCV is calculated at the
end of each month based upon the fund's performance during
the last rolling 24-month period. The
12
<PAGE>
fund's gross performance is then compared with the
performance of the Russell 2000. The Russell 2000 is a
widely recognized unmanaged common stock index of small to
medium size companies. When the fund performs better than
the Russell 2000, it pays the investment advisor additional
fees. If the fund lags the Russell 2000, the investment
advisor is paid less than the basic fee. Each 1.00% of the
difference in performance between the fund and the Russell
2000 during the performance period is equal to a 0.10%
adjustment to the basic fee. The end result is that if the
investment advisor manages the fund in such a way as to
outperform the benchmark index, the investment advisor is
paid more for its efforts. Most important, however, is the
fact that if the investment advisor does not perform as well
as the benchmark index, the investment advisor is paid less,
and in this way, penalized for poor performance.
The maximum annualized performance adjustment rate is +/-
0.50% of average net assets which would be added to or
deducted from the investment advisory fee if the fund
outperformed or underperformed the Russell 2000 by 5.00%.
The effect of this performance fee adjustment is that the
investment advisory fee may never be greater than 1.25% or
less than 0.25% of the fund's average daily net assets for
the preceding month. During the fiscal year ended December
31, 1999, SSCV paid the investment advisor a fee at the
effective annual rate of 0.57% of the fund's average daily
net assets.
- --------------------------------------------------------------------------------
PRICING FUND Fund share pricing is based upon net asset value. The net
SHARES asset value per share of each fund is determined once each
business day as of the close of regular trading hours
(normally 4:00 p.m. Eastern time) on the New York Stock
Exchange ("NYSE"). Such determination will be made by
dividing the value of all securities and other assets
(including dividends accrued but not collected) less any
liabilities (including accrued expenses), by the total
number of shares outstanding.
Portfolio securities are valued as follows:
1. Securities listed or admitted to trading on any national
securities exchange are valued at their last sale price
on the exchange where the securities are principally
traded or, if there has been no sale on that date, at the
mean between the last reported bid and asked prices.
2. Securities traded in the over-the-counter market are
valued at the last sale price, if carried in the National
Market Issues section by NASDAQ; other over-the-counter
securities are valued at the mean between the closing bid
and asked prices obtained from a principal market maker.
3. All other securities and assets are valued at their fair
value as determined in good faith by the Board of
Directors of the funds, which may include the amortized
cost method for securities maturing in sixty days or less
and other cash equivalent investments.
Determination of the net asset value may be suspended when
the right of redemption is suspended as provided under "How
to Redeem Fund Shares."
13
<PAGE>
HOW TO BUY FUND
SHARES
Purchase Price You pay no sales charge to invest in any of the funds.
Shares of all funds are sold at the net asset value per
share (NAV) next determined after receipt of the order by
PFPC.
Time of All requests received by PFPC before 4:00 p.m. Eastern time
Requests will be executed the same day, at that day's closing share
price. Orders received after 4:00 p.m. Eastern time will be
executed the following day, at that day's closing share
price. Shares will not be priced on days when the NYSE is
closed.
Stock exchange Shares of the funds will not be priced and are not available
closings for purchase on the following days on which the NYSE is
closed for trading: New Year's Day, Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas
Day.
General Shares of a fund may be repurchased or redeemed through
Information broker/dealers who may charge a transaction fee. This fee
would not otherwise be charged if the shares were purchased
directly from a fund. The funds may accept wire purchase
orders from broker/dealers and institutions that previously
have been approved by a fund.
The funds reserve the right to reject any purchase order.
Share certificates are issued only upon shareholder request.
The funds do not accept third party checks for the purchase
of shares. The funds reserve the right to delay sending
redemption proceeds up to 15 days if you recently purchased
shares by check. A $20 fee is charged to your account for
any purchase check returned to the custodian.
Shareholder inquiries should be directed to the funds'
transfer agent, PFPC Inc., P.O. Box 61503, King of Prussia,
PA 19406-0903, phone number (800) 472-4266. Certain special
shareholder services, such as a request for a historical
transcript of your account, may involve an additional fee.
Shareholders of each fund can obtain toll-free access to
account information, as well as some transactions, by
calling (800) 472-4266. Integrated Voice Response System
provides share price and price change for the funds; gives
account balances and history (i.e., last transaction, latest
dividend distribution, redemptions by check during the last
three months); and allows exchanges of shares.
14
<PAGE>
How to buy shares
- --------------------------------------------------------------------------------
To open an account
- --------------------------------------------------------------------------------
By Mail
- --------------------------------------------------------------------------------
Complete the application.
Mail the application and your check to:
PFPC INC.
P.O. BOX 61503
KING OF PRUSSIA, PA 19406-0903
Please make check payable to the name of the fund you wish to invest in.
Minimum initial investment for the funds:
$2,000 for non-retirement accounts
No minimum investment for retirement accounts.
- --------------------------------------------------------------------------------
To add to an account
- --------------------------------------------------------------------------------
By Mail
- --------------------------------------------------------------------------------
Please make check payable to the name of the fund you are investing in and
write your account number on the check.
Mail your check and the stub from your last account statement to:
PFPC INC.
P.O. BOX 61767
KING OF PRUSSIA, PA 19406-8767
Minimum additional investments for the funds:
$100 for non-retirement accounts
No minimum for retirement accounts
- --------------------------------------------------------------------------------
By Wire
- --------------------------------------------------------------------------------
For new accounts, call (800) 472-4266. An account number will be assigned to
you.
Call your bank with instructions to transmit federal funds to:
--Boston Safe Deposit & Trust
--ABA#: 011001234
--Credit: The fund name
--Acct#: 000701
--FBO: name(s) on account registration and account number
Your bank may charge a wire fee.
Minimum investment: same as "By Mail" above.
Mail your completed application to PFPC Inc. at the address above.
- --------------------------------------------------------------------------------
By Wire
- --------------------------------------------------------------------------------
Follow instructions under "To open an account--By Wire".
Minimum additional investment: same as "By Mail" above.
- --------------------------------------------------------------------------------
By Automatic Investment*
- --------------------------------------------------------------------------------
Complete the application and return it with your initial investment. The
minimum investment for this plan is $100.
Subsequent investments will be drawn from your bank account and invested into
the fund(s).
*Requires $2,000 initial minimum balance.
- --------------------------------------------------------------------------------
By Automatic Investment
- --------------------------------------------------------------------------------
Call (800) 472-4266 to request an application.
Complete and return the application along with any other required materials.
Subsequent investments will be drawn from your bank account and invested into
the fund(s).
15
<PAGE>
HOW TO REDEEM
FUND SHARES
Timing of Shares are redeemed at the net asset value next determined
Requests at the close of regular trading hours on the NYSE after
receipt of a request for redemption in the form described
below, and the certificates (if any) evidencing the shares
to be redeemed. There is no redemption charge. However, the
transfer agent will charge a $9 fee for wiring redemption
proceeds. Payment for shares redeemed is made within five
business days, or such shorter time period as may be
required by applicable SEC rules, after receipt of the
certificates (or of the redemption request where no
certificates have been issued) by mailing a check to your
address of record.
Telephone Neither the funds nor any of their service contractors will
Redemptions be liable for any loss or expense or cost in acting upon any
telephone instructions that are reasonably believed to be
genuine. To the extent that a fund fails to use reasonable
procedures to verify the genuineness of telephone
instructions, it and/or its service contractors may be
liable for any such instructions that prove to be fraudulent
or unauthorized.
Redeeming If you wish to redeem shares that were recently purchased by
recently check, the funds may delay mailing of your redemption check
purchased for up to 15 business days after your redemption request to
shares allow the purchase check to clear. If you are considering
redeeming shares soon after purchase, you should purchase by
bank wire or certified check to avoid delay.
Signature The funds may require additional documentation, or signature
guarantees guarantees on any redemptions if proceeds are to be paid to
someone other than the account holder, when redemption
proceeds are to be wired to a bank, requests to transfer
share registration, or when redemption proceeds are to be
sent to an address other than the account holder's. A
signature guarantee helps protect against fraud. You can
obtain one from most banks or securities dealers, but not
from a notary public. Please call (800) 472-4266 for
information on obtaining a signature guarantee.
Accounts with If your account falls below $500, the fund may ask you to
low balances increase your balance. If it is still below $500 after 60
days, the fund may close your account and send you the
proceeds.
16
<PAGE>
How to redeem shares
- ----------------------------------- ----------------------------------------
To redeem or close an account To redeem or close an account
- ----------------------------------- ----------------------------------------
By Mail By Telephone
- ----------------------------------- ----------------------------------------
Write a letter of instruction that
includes:
To make redemptions by telephone, call
--The fund name, your account (800) 472-4266 before the close of
number, the name(s) in which the business on any business day. The funds
account is registered and the may require additional documentation,
dollar value or number of shares or signature guarantees on any
you wish to sell. redemptions in amounts over $50,000.
--Include all signatures and any Proceeds will normally be sent the next
additional documents that may be business day by first class mail to the
required. address in which the account is
registered.
--Mail your request and any
applicable stock certificates you Redemption requests to send proceeds to
hold to: an address other than the address of
PFPC INC. record must be in writing with the
P.O. BOX 61503 appropriate signature guarantees.
KING OF PRUSSIA, PA 19406-0903 Telephone redemption requests to send
proceeds to banks may be accepted if
--A check will be mailed to the the appropriate wiring instructions are
name(s) and address in which the on file prior to the request.
account is registered.
- ----------------------------------- ----------------------------------------
By Exchange By Automated Clearing House
- -----------------------------------
----------------------------------------
Call (800) 472-4266 to request an Redemption proceeds may be transferred
exchange of shares into another to banks that are on-line members of
Stratton Mutual Fund. ACH. There are no service fees. Written
ACH redemption requests should be sent
- ----------------------------------- to PFPC at the address under "By Mail."
By Systematic Cash Withdrawal Plan ACH redemptions are sent the day
- ----------------------------------- following receipt of your request, and
Complete the appropriate part of funds are available two days later.
the application and specify the
amount and frequency of
withdrawals you would like
(monthly minimum is $50). Be sure
to maintain an account balance of
$10,000 or more.
- --------------------------------------------------------------------------------
EXCHANGE You can exchange fund shares for shares of the other
PRIVILEGE Stratton funds, provided such other shares may legally be
sold in your state. Each fund has a distinct investment
objective, which should be reviewed before executing any
exchange of shares. You also should read the additional
information about a fund, including its expenses, before
seeking any such exchange. Shares may be exchanged by
written request or telephone.
PLEASE NOTE: Shareholders who have certificated shares must
surrender these certificates to the transfer agent to be
held on account in unissued form before taking advantage of
the exchange privilege. When returning certificates for this
purpose only, signature(s) need not be guaranteed. There are
no sales charges involved. Shareholders who engage in
frequent exchange transactions may be prohibited from
further exchanges or otherwise restricted in placing future
orders. The funds reserve the right to suspend the telephone
exchange privilege at any time. An exchange for tax purposes
constitutes the sale of one fund and the
17
<PAGE>
purchase of another. Consequently, the sale may involve
either a capital gain or loss to the shareholder for federal
income tax purposes.
- --------------------------------------------------------------------------------
RETIREMENT Each fund has available four types of tax-deferred
PLANS retirement plans: (1) a Profit Sharing and a Money Purchase
Plan, for use by both self-employed individuals and
corporations; (2) an Individual Retirement Account, both
Traditional and Roth, for use by certain eligible
individuals with compensation (including earned income from
self-employment); (3) a Simple Individual Retirement Account
Plan for use by certain small employers; and (4) a 403(b)(7)
Retirement Plan, for use by employees of schools, hospitals,
and certain other tax-exempt organizations or associations.
More detailed information about how to participate in these
plans, the fees charged by the custodian, and the limits on
contributions can be found in the Statement of Additional
Information. To invest in any of the tax-deferred retirement
plans, please call the funds for information and the
required separate application, disclosure statement and
custodial agreement.
- --------------------------------------------------------------------------------
TAX TREATMENT: Each fund contemplates declaring as dividends each year all
DIVIDENDS AND or substantially all of its taxable income, including its
DISTRIBUTIONS net capital gain (the excess of long-term capital gain over
short-term capital loss). Distributions attributable to the
Tax Treatment net capital gain of a fund will be taxable to you as long-
term capital gain, regardless of how long you have held your
shares. Other fund distributions will generally be taxable
as ordinary income. (However, if a fund's distributions
exceed its net income and gain--as may be the case
particularly for SMDS, because REIT distributions often
include a nontaxable return of capital--that excess will
generally result in a nontaxable return of capital to you.)
The tax treatment to you of fund distributions will be the
same whether they are paid in cash or reinvested in
additional shares. Any dividends declared in October,
November or December and paid in January will be deemed for
tax purposes to have been paid to you on December 31. You
will be notified annually of the amount and tax status of
all distributions paid to you.
REITs often do not provide complete tax information to the
funds until after the calendar year-end. Consequently,
because of the delay, it may be necessary for the funds to
request permission to extend the deadline for issuance of
Forms 1099-DIV beyond January 31.
You should note that if you purchase shares shortly before a
taxable distribution, the purchase price will reflect the
amount of the upcoming distribution, but you will be taxed
on the entire amount of the distribution received, even
though, as an economic matter, the distribution simply
constitutes a return of capital. This is known as "buying
into a dividend."
You will recognize a taxable gain or loss on a sale,
exchange or redemption of your shares, including an exchange
for shares of another fund, based on the difference between
your tax basis in the shares and the amount you receive for
them. (To aid in computing your tax basis, you generally
should retain your
18
<PAGE>
account statements for the periods during which you held
shares.) Generally, your gain or loss will be long-term or
short-term depending on whether your holding period for the
shares exceeds 12 months, except that any loss realized on
shares held for six months or less will be treated as long-
term capital loss to the extent of any capital gain
dividends that were received on the shares.
The one major exception to these tax principles is that
distributions on, and sales, exchanges and redemptions of,
shares held in an IRA (or other tax-qualified plan) will not
be currently taxable. Also, dividends paid to shareholders
that are corporations may be eligible for the 70% dividends-
received deduction to the extent the dividends are
attributable to qualifying dividends received by the fund
from domestic corporations. Generally, dividends received
from REITs are not considered to be qualifying dividends for
purposes of the 70% dividends-received deduction.
You will also generally be subject to any applicable state
and local income taxes on fund distributions and
redemptions. State income taxes generally will not apply,
however, to fund distributions attributable to interest on
federal securities, if any.
Each fund is required by Federal tax law to withhold 31% of
reportable payments (which may include dividends, capital
gains distributions, and redemptions) paid to shareholders
who have not complied with Internal Revenue Service
regulations regarding Tax Identification Certification. In
order to avoid this withholding requirement, you must
certify by signature on your Application, or on a separate
W-9 Form supplied by the transfer agent, that your Social
Security or Taxpayer Identification Number is correct (or
you are waiting for a number to be issued to you), and that
you are currently not subject to backup withholding, or you
are exempt from backup withholding.
The foregoing is only a summary of certain tax
considerations under current law, which may be subject to
change in the future. You should consult your tax adviser
for further information regarding federal, state, local
and/or foreign tax consequences relevant to your specific
situation.
Dividends and The shareholders of each fund are entitled to dividends and
Distributions distributions arising from the net investment income and net
realized gains, if any, earned on investments held by the
fund involved, when declared by the Board of Directors of
such fund. SGF declares and pays dividends from net
investment income on a semi-annual basis. SMDS declares and
pays dividends from net investment income on a monthly
basis. SSCV declares and pays dividends from net investment
income annually. Each fund will make distributions from net
realized gains, if any, once a year, but may make
distributions on a more frequent basis so as to avoid
incurring any fund level income or excise taxes, or for
other reasons. Any distribution paid necessarily reduces a
fund's net asset value per share by the amount of the
distribution. Distributions may be reinvested in additional
shares of such fund.
19
<PAGE>
Stratton Mutual Funds
New Account Application
1.REGISTRATION
Complete A, B or C below. (PLEASE PRINT) No certificates will be issued
unless requested in writing.
A.Individual or Joint Account*
------------------------------------------------------ -----------------
First Name Middle Initial Last Name Social Security
Number
------------------------------------------------------ -----------------
First Name Middle Initial Last Name Social Security
Number
*Registration will be Joint Tenancy with Rights of Survivorship, unless
otherwise specified.
B.Gift to Minors
---------------------------------------------- Under the ____ UGMA/UTMA
Name of Custodian State
---------------------------------------------- ------------------------
As Custodian For (name of minor) Minor's Social Security
Number
C.Corporations, Partnerships, Trusts and Others**
---------------------------------------------- ------------------------
Name of Legal Entity Taxpayer Identification
Number
--------------------------------------------------------------------------
Name of Fiduciary
----------------------------------------------
Date of Trust (month, day, year)
**Complete Corporate Resolution attached, if applicable
2.MAILING ADDRESS
----------------------------------------------------------------------------
Street City State Zip Code
---------------------------- ----------------------------
Daytime Telephone E-Mail Address
If you have an account in another Stratton Fund that is registered under
the same name as above, please list the account number here: _______________
3.INVESTMENT INFORMATION ($2,000 minimum each)
<TABLE>
<S> <C> <C> <C>
[ ] Stratton Growth Fund, Inc. % or $
[ ] Stratton Monthly Dividend
REIT Shares, Inc. % or $
[ ] Stratton Small-Cap Value Fund % or $
Total 100 % $
</TABLE>
[ ] BY CHECK: Please make payable to Stratton Mutual Funds
[ ] BY WIRE: An initial purchase of $ was wired on ___________ by
date
_______________________________________ to account #
Name of your Bank or Broker Number assigned by PFPC, Inc.
4.DISTRIBUTION OPTIONS
Check one box only for each; if none are checked, all dividend and capital
gains, if any, will be reinvested.
<TABLE>
<S> <C> <C> <C>
Income
Dividends (check one box only) [ ] reinvested [ ] paid in cash
Capital Gains
Distributions (check one box only) [ ] reinvested [ ] paid in cash
</TABLE>
Please refer to item 8 for instructions if cash option via Automated
Clearing House ("ACH") is desired.
<PAGE>
5.SYSTEMATIC WITHDRAWAL PLAN
[ ]Check box if you want this service.
To establish a Systematic Withdrawal Plan (SWP), an account must have a
current market value of $10,000 or more. Additionally, an account must
have dividends reinvested.
[ ] Check box if you want withdrawal sent to address of record.
[ ] Check box if you want withdrawal sent via ACH as instructions
indicate in item 8.
Amount and Frequency of Payments:
Beginning in , , please make payments in the amount
of $
month year $50 minimum
Payments will be processed on the 25th day of the month in the
frequency indicated below:
[ ] Monthly [ ] Quarterly [ ] Semi-annually [ ] Annually
6.AUTOMATIC INVESTMENT PLAN
[ ] Check box if you want this service.
I (We) have read the terms and conditions of the Automatic Investment
Plan set forth in the Prospectus. I (We) wish to invest on a
monthly/quarterly basis, directly from my checking account into the
Fund.
Please provide the bank information in item 8 "Special Programs" and
attach a voided check. Please designate the amount you would like
invested each month/quarter $
($100 minimum)
[ ] monthly [ ] quarterly (check one)
To begin on the 10th, 15th, 20th (circle one) of the month.
7.TELEPHONE EXCHANGE & REDEMPTION PRIVILEGE
(NOTE: THIS OPTION WILL BE ASSIGNED TO YOUR ACCOUNT UNLESS YOU ELECT
OTHERWISE BELOW!)
[ ]Check box if you DO NOT want this service.
I (We) authorize PFPC Inc. to honor telephone redemptions (to my/our
bank) and/or to act upon instructions for exchanges (between my/our
Funds) received by telephone believed by it to be genuine with
identical registrations. I (We) understand that the telephone exchange
privilege permits switching at any time between Stratton Growth Fund,
Inc., Stratton Monthly Dividend REIT Shares, Inc., and Stratton Small-
Cap Value Fund provided such other shares may legally be sold in the
state of the investor's residence. Neither the Fund(s) nor PFPC Inc.
will be liable for properly acting upon telephone instructions believed
to be genuine.
----------------------------------------------------------------------------
Bank Name Branch Office (if applicable)
----------------------------------------------------------------------------
Bank Address (Do not use P.O. Box) City State Zip Code
----------------------------------------------------------------------------
Bank Wire Routing Number Name(s) on Bank Account Bank Account Number
PLEASE REMEMBER TO ATTACH A VOIDED CHECK
8.SPECIAL PROGRAMS
All Direct Deposit Programs and ACH transactions will be sent as indicated
below. There will be no charge for ACH transactions. Any changes in ACH
transactions must be made in writing to PFPC Inc., 211 South Gulph Road,
King of Prussia, PA 19406-0903. Please allow one month for ACH transactions
to be effective.
Notify your bank of your intent to establish this option on your bank
account.
----------------------------------------------------------------------------
Bank Name Branch Office (if applicable)
----------------------------------------------------------------------------
Bank Address (Do not use P.O. Box) City State Zip Code
----------------------------------------------------------------------------
Bank Wire Routing Number Name(s) on Bank Account Bank Account Number
9.SIGNATURE AND CERTIFICATION
The Internal Revenue Service does not require your consent to any provision
of this document other than the certification required to avoid backup
withholding.
If you are subject to backup withholding check here: [ ]
I have received, read and agree to the terms of the current Prospectus of
the Funds. I have the authority and legal capacity to purchase shares of
the Fund(s) and I am of legal age in my state. I authorize PFPC Inc., its
affiliates, and the Fund(s) to act on any instructions believed to be
genuine for any service authorized on this form. I agree that they will not
be liable for any resulting loss or expense.
Under penalties of perjury, I certify that the social security or taxpayer
identification number entered above is correct and that I have not been
notified by the IRS that I am subject to backup withholding, or that the
IRS has notified me that I am no longer subject to backup withholding.
Please sign here:
-------------------------------------------------------- -----------------
Signature of Owner, Custodian or Trustee Date
-------------------------------------------------------- -----------------
Signature of Joint Owner (if applicable) Date
<PAGE>
The Statement of Additional Information contains additional
information about the funds. The Statement of Additional
Information is incorporated by reference into this
Prospectus in its entirety. Additional information about the
funds' investments is available in the annual and semi-
annual reports to shareholders. In the annual report, you
will find a discussion of the market conditions and
investment strategies that significantly affected each
fund's performance during the last fiscal year.
To obtain a Statement of Additional Information, annual
report or semi-annual report for the funds, without charge,
call (800) 472-4266. This number may also be used to make
shareholder inquiries.
Information about the funds (including the Statement of
Additional Information) can be reviewed and copied at the
SEC Public Reference Room in Washington, D.C. Information on
the operation of the Public Reference Room may be obtained
by calling the SEC at (202) 942-8090. Reports and other
information about the funds are available on the EDGAR
Database on the SEC's Internet site at http://www.sec.gov.
You may request documents from the SEC, upon payment of a
duplicating fee, by electronic request at
[email protected], or by writing to the SEC, Public
Reference Section, Washington, DC 20549-0102.
SEC file nos.: SGF 811-2297
SMDS 811-2240
The Stratton Funds, Inc. 811-7434
<PAGE>
DIRECTORS
Lynne M. Cannon
John J. Lombard, Jr.
Douglas J. MacMaster, Jr.
Henry A. Rentschler
Merritt N. Rhoad, Jr.
Richard W. Stevens
James W. Stratton
OFFICERS
James W. Stratton
Chairman
John A. Affleck
President,
Stratton Growth Fund
James A. Beers
President, Stratton
Monthly Dividend REIT Shares
Frank H. Reichel, III
President,
Stratton Small-Cap Value Fund
Joanne E. Kuzma
Vice President
Patricia L. Sloan
Secretary & Treasurer
Brigid E. Hummel
Assistant Secretary &
Treasurer
INVESTMENT ADVISOR
Stratton Management Company
Plymouth Meeting Executive Campus, 610 W. Germantown Pike, Suite 300
Plymouth Meeting, PA 19462-1050, Telephone: 610-941-0255
TRANSFER AGENT & DIVIDEND PAYING AGENT
PFPC Inc.
3200 Horizon Drive, P.O. Box 61503, King of Prussia, PA 19406-0903
Telephone: 610-239-4600, 800-472-4266
CUSTODIAN
The Bank of New York
48 Wall Street, New York, NY 10286
Visit the Stratton Mutual Funds web site at
http://www.strattonmgt.com
- ------------------------------
STRATTON
Mutual Funds
- ------------------------------
Stability . Strategy . Success
