(Logo) Vista
Family of Mutual Funds
THE GROWTH FUND OF WASHINGTON
Semi-Annual Report
June 30, 1996
THE GROWTH FUND OF WASHINGTON
Fund results in this letter were computed without a sales charge. Here
are the total and average annual compound returns for the following periods
ended June 30, 1996 on a $1,000 investment at the 4.75% maximum sales
charge with all distributions reinvested: 10 years: +130.64%, or +8.72% a
year; 5 years: +86.96%, or +13.33% a year; and 12 months: +20.75%. Sales
charges are lower for accounts of $100,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. ALL INVESTMENTS ARE
SUBJECT TO CERTAIN RISKS. FOR EXAMPLE, THOSE WHICH INCLUDE COMMON STOCKS
ARE AFFECTED BY FLUCTUATING STOCK PRICES SO YOU MAY GAIN OR LOSE MONEY BY
INVESTING IN THE FUND. ACCORDINGLY, INVESTORS SHOULD MAINTAIN A LONG-TERM
INVESTMENT PROSPECTIVE. FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
INSURED, GUARANTEED OR ENDORSED BY, THE U.S. GOVERNMENT, ANY BANK, THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY
OTHER AGENCY, ENTITY OR PERSON.
Fellow Shareholders
The Growth Fund of Washington maintained its momentum during the first
six months of 1996. The Fund paid a 3 1/2-cent per share dividend on June
24 to share-holders of record at the opening of business on June 21. The
Fund's net asset value rose to $19.32 on June 30, 1996 from $18.19 on
December 31, 1995, an increase of 6.4% with the June dividend taken in
shares. For the same period, the total return of the Standard & Poor's 500
Composite Index, a broad unmanaged measure of the U.S. market, increased
by 10.1%. At midyear, the weighted average price earnings multiple for the
Fund's holdings was 13.0 times 1997 estimated earnings, or 21.7% less than
the S&P 500's multiple of 16.6 times.
For the first six months of 1996, the financial markets have been
focused on the strength of the economy. This extraordinary focus on the
latest economic indicators and statistics has created greater volatility
within the securities markets. There have been concerns preceding each
meeting of the Federal Reserve that short-term rates will be increased but,
as yet, the Federal Reserve has not implemented a rate increase. The
inflation picture remained favorable in the first half, with commodity
prices weakening.
On June 30, 1996, The Growth Fund of Washington held securities of 30
companies diversified within 13 industry groups. The Fund's five largest
holdings, representing 40.73% of total net assets, were Federal National
Mortgage Associa-tion (9.83%); Lockheed Martin Corporation (8.91%); Federal
Home Loan Mortgage Corp. (7.94%); CSX Corporation (7.16%); and Richfood
Holdings, Inc. (6.89%).
Since the first of the year, the following seven securities were added
to the Fund's portfolio. COMSAT Corp., headquartered in Bethesda, Maryland,
is an international telecommunications company with entertainment and
sports interests. COMSAT is selling at a discount relative to other
companies in the telecommunications group. The focus of management is to
reduce this discount by concentrating on its faster growing
telecommunications component. PennFed Financial Services, Inc. is a
Northeast-based savings and loan holding company for Penn Federal Savings
Bank, with over $1 billion in assets, selling at about 8.7 times fiscal
1997 estimated earnings.
Security First Network Bank, FSB is a Southeast-based banking
franchise and software company, with proprietary products to facilitate
transactions via non-traditional means. Tele-Communications Inc., Series A,
Liberty Media Group has an interest in numerous regionally-based
communications companies such as Washington, DC-based BET Holdings;
Bethesda, Maryland's Discovery Communications; and Virginia Beach-based
International Family Entertainment. Tele-Communications currently is
selling at a discount to its overall portfolio value. Tysons Financial
Corp. is a Tysons Corner, Virginia-based bank holding company with about
$80 million in assets, servicing small to medium sized local businesses.
The stock is trading at a price/earnings multiple of 6 times current year
earnings. U.S. Office Products Co. is based in Washington, DC and sells a
variety of office supplies, products and furniture to corporate and
industrial customers through a catalog-based system. U.S. Office Products
is currently selling at a discount to its three-year projected growth rate
of 35% a year. US Order, Inc. is a technology company based in Herndon,
Virginia. It designs and develops products and services for the rapidly
growing home banking market and intelligent telecommunications network
services.
The Growth Fund of Washington eliminated the following seven holdings
during this period: Cadmus Communications Corp., Host Marriott Corporation,
James River Corporation of Virginia, Martek Biosciences Corp., Primark
Corporation, Riggs National Corporation and Sterile Concepts Holdings Inc.
Prospects remain bright for the regional economy despite government
downsizing, since a good balance of job and population growth and contained
inflation appear likely. The prospects for telecommunications and banking
are strong. Telecommunications legislation, which we referred to in earlier
reports, was enacted on February 8, 1996. This should stimulate competition
and growth in the telecommunications sector. The banking industry also
looks attractive and shows steady growth and profitability due to
reasonable loan growth, strong fee income, and cost controls.
Overall, the lower than average price to earnings ratio of the Fund
leaves it well positioned to ride out possible market volatility, which may
lie ahead.
We welcome your comments, as always, and look forward to reporting to
you again in six months.
Sincerely,
(SIGNATURES)
James H. Lemon, Jr. Harry J. Lister
Chairman President
July 30, 1996
<TABLE>
<CAPTION>
Investment Portfolio as of June 30, 1996 (Unaudited)
Number
Industry of Market Percent of
Group Securities<F1> Shares Value Net Assets
<S> <S> <C> <C> <C>
Aerospace Lockheed Martin Corp. 50,000 $ 4,200,000 8.91%
Bethesda-based defense/aerospace company,
that also designs and services communication
and information systems.
Banking & Capital One Financial Corp. 31,000 883,500 1.87
Credit Northern Virginia-based company that is
the 11th largest general purpose credit
card issuer.
Crestar Financial Corp. 31,000 1,654,625 3.51
Richmond-based bank holding company
with approximately $18.5 billion in assets.
First Citizens Financial Corp.<F2> 32,397 566,948 1.20
Montgomery and Frederick County-based
savings bank with over $600 million in assets.
NationsBank Corporation 22,200 1,834,275 3.89
A multi-bank holding company with over
1,700 offices in 9 states and Washington,
DC with $192 billion in assets.
PennFed Financial Services, Inc.<F2> 20,000 310,000 .66
A savings & loan holding company for Penn
Federal Savings Bank with over $1 billion
in assets.
Signet Banking Corp. 66,000 1,534,500 3.26
A multi-bank holding company with over
244 branches in Maryland, Virginia and
Washington, DC with $11.5 billion in assets.
Tysons Financial Corp.<F2> 11,000 98,313 .21
Tysons Corner-based bank holding company
for small to medium sized businesses with
$80 million in assets.
TOTAL 6,882,161 14.60
Basic Danaher Corp. 25,000 1,087,500 2.31
Industry & Washington, DC-based manufacturer of hand
Manufacturing tools, automotive & transportation equipment,
and process & environmental controls.
Computer American Management Systems, Inc.<F2> 39,000 $ 1,140,750 2.42%
Services & Northern Virginia-based leading supplier of
Hardware information technologies.
DST Systems, Inc.<F2> 10,400 332,800 .70
Provides information processing and computer
software services and products primarily to
mutual funds.
MICROS Systems, Inc.<F2> 26,500 738,687 1.57
Maryland-based manufacturer and marketer
of systems and software for the hospitality
industry.
Security First Network Bank, FSB<F2> 5,000 165,000 .35
A banking franchise and software company
with an internet banking application.
US Order, Inc.<F2> 30,000 457,500 .97
Northern Virginia-based company that designs
and develops products and services for home
banking and telecommunications networks.
TOTAL 2,834,737 6.01
Electronics Harman International Industries, Inc. 15,750 775,687 1.65
Washington, DC-based specialty manufacturer
of electronic and audio components.
Financial Federal Home Loan Mortgage Corp. 43,800 3,744,900 7.94
Services Northern Virginia-based company which
purchases, securitizes and guarantees
mortgages.
Federal National Mortgage Association 138,320 4,633,720 9.83
Washington, DC-based, it is the nation's
largest residential mortgage funding
operation through the secondary market.
TOTAL 8,378,620 17.77
Food & Richfood Holdings, Inc. 100,000 3,250,000 6.89
Food Services Virginia-based wholesale supplier to grocery
retailers in the region.
Household The Black & Decker Corp. 10,000 $ 386,250 .82%
Products Maryland-based maker of a wide range of
products sold to residential and commercial
markets in over 100 countries.
Office Furniture U.S. Office Products Co.<F2> 7,000 294,000 .62
& Products Washington, DC-based company that sells
office supplies, products and furniture
through a catalog.
Publishing & EZ Communications, Inc.<F2> 15,000 356,250 .76
Communications Fairfax-based company which acquires,
develops and operates radio stations in
several states.
Tele-Communications Inc., Series A,
Liberty Media Group<F2> 30,000 795,000 1.69
Holds an interest in BET Holdings of
Washington, DC and International Family
Entertainment of Virginia Beach and owns
49% of Discovery Communications of
Bethesda.
The Washington Post Co., Class B 10,000 3,240,000 6.87
Washington, DC-based company publishes
"The Washington Post" and "Newsweek;"
owns several TV stations and over 50
cable TV systems.
TOTAL 4,391,250 9.32
Retail Circuit City Stores, Inc. 20,000 722,500 1.53
Richmond-based retailer of audio, video,
brand name consumer electronic products,
and a presence in the used car market through
CarMax.
Giant Food, Inc., Class A 53,800 1,930,075 4.09
Landover, Maryland-based company which
operates over 150 supermarkets in Delaware,
Maryland, Virginia and Washington, DC.
TOTAL 2,652,575 5.62
Telecommuni- Bell Atlantic Corp. 28,000 $ 1,785,000 3.79%
cations Holding company for the Mid-Atlantic
telephone companies serving a six state area
and Washington, DC.
COMSAT Corp. 30,000 780,000 1.65
Bethesda-based company that provides
satellite-based communication systems
outside the U.S., provides in-room hotel
TV services, and has interests in sports
franchises.
LCI International, Inc.<F2> 30,000 941,250 2.00
Northern Virginia-based long distance carrier
providing domestic and international voice
& data services.
MCI Communications Corp. 60,000 1,537,500 3.26
Washington, DC-based company which is
the second largest telecommunications
service network in the United States.
TOTAL 5,043,750 10.70
Transportation CSX Corp. 70,000 3,377,500 7.16
Richmond-based holding company for
transportation and natural resources with
railroad, barge, trucking, pipeline, and
ocean shipping units.
Securities in initial period of acquisition<F2> 1,335,625 2.83
TOTAL INVESTMENT SECURITIES
(cost: $19,284,576) 44,889,655 95.21
Repurchase Agreements:
Donaldson, Lufkin & Jenrette Securities Corporation 2,212,000 4.69
5.40%, issued 6/28/96, $2,212,995 including interest,
due 7/1/96 (collateralized by $8,192,000 United States
Treasury Strip Interest due 8/15/14)
Excess of cash and receivables over payables 47,987 .10
NET ASSETS $47,149,642 100.00%
<FN>
<F1> Securities listed are common stocks unless otherwise indicated.
<F2>Indicates security which has not paid dividends during the preceding twelve months.
</FN>
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
as of June 30, 1996 (Unaudited)
<S> <S> <C> <C>
Assets Investment in securities,
at market (cost: $19,284,576) $44,889,655
Repurchase agreements,
(cost: $2,212,000) 2,212,000
Cash 21,625
Dividends and interest receivable 5,195
Receivable for Fund's shares sold 2,193
Receivable for securities sold 237,188
Other assets 12,431 $47,380,287
Liabilities Payable for adviser and management services 28,821
Payable for distribution plan 29,423
Payable for Fund's shares repurchased 168,196
Accounts payable and accrued expenses 4,205 230,645
Net Assets Capital stock ($.01 par value, 2,440,932 shares
outstanding, 25,000,000 authorized) 24,409
Paid-in capital 19,372,123
Undistributed investment income 11,386
Undistributed realized capital gains 2,136,645
Unrealized gains 25,605,079 $47,149,642
Net asset value per share $19.32
</TABLE>
See Notes to Financial Statements
Statement of Operations
For the six months ended June 30, 1996 (Unaudited)
Investment Income
Income:
Dividends $ 365,475
Interest 55,317 $ 420,792
Expenses:
Investment advisory fee 87,500
Business management fee 84,919
Distribution fee 58,333
Transfer agency fee and expenses 36,988
Auditing and legal fees 15,215
Custodian fee and expenses 15,723
Directors' fees 4,800
Postage, stationery and supplies 2,683
Reports to shareholders 7,602
Registration and prospectus expense 7,640
Other 1,775 323,178
Net investment income 97,614
Realized and Unrealized Gain on Investments
Net realized gain on equities, identified
cost basis 2,092,525
Net realized gain on options, identified
cost basis 45,648
Net change in unrealized gain 657,300
Net realized and change in unrealized gain
on investments 2,795,473
Net increase in net assets
resulting from operations $2,893,087
See Notes to Financial Statements
Statement of Changes in Net Assets
Six Months
Ended Year
June 30, Ended
1996 Dec. 31,
(Unaudited) 1995
Increase in Net Assets
Operations:
Net investment income $ 97,614 $ 345,826
Net realized gain on equity investments 2,092,525 2,028,012
Net realized gain on option contracts 45,648 _
Net change in unrealized gain on investments 657,300 11,999,577
Net increase in net assets
resulting from operations 2,893,087 14,373,415
Dividends and Distributions Paid to Shareholders:
Dividends from net investment income (85,894) (336,934)
Distributions from net realized gains _ (2,029,200)
Total (85,894) (2,366,134)
Capital Stock Transactions:
Net decrease in net assets resulting from
capital stock transactions (1,054,644) (324,849)
Total increase in net assets 1,752,549 11,682,432
Net Assets:
Beginning of period 45,397,093 33,714,661
End of period $47,149,642 $45,397,093
See Notes to Financial Statements
<TABLE>
<CAPTION>
Financial Highlights
For a share outstanding throughout the period
Six Months
Ended
June 30, 1996 For the year ended December 31,
(Unaudited) 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.19 $13.32 $15.37 $14.16 $12.34 $10.62
Income from investment operations:
Net investment income .04 .14 .18 .14 .14 .18
Net realized and unrealized gain (loss)
on investments 1.13 5.72 (1.61) 1.63 2.03 2.54
Total from investment operations 1.17 5.86 (1.43) 1.77 2.17 2.72
Less Distributions:
Dividends (from net investment
income) (.04) (.14) (.18) (.14) (.13) (.18)
Distributions (from capital gains) - (.85) (.44) (.42) (.22) (.82)
Total distributions (.04) (.99) (.62) (.56) (.35) (1.00)
Net asset value, end of period $19.32 $18.19 $13.32 $15.37 $14.16 $12.34
Total return<F1> 6.40% 44.25% (9.32%) 12.52% 17.72% 26.37%
Ratios/supplemental data:
Net assets, end of period
(in thousands) $47,150 $45,397 $33,715 $39,990 $37,162 $35,266
Ratio of expenses to average
net assets 1.38% 1.46% 1.50% 1.55% 1.55% 1.67%
Ratio of net income to average
net assets .42% .87% 1.20% .87% 1.04% 1.43%
Average commissions paid<F3> 6.71(c)
Portfolio turnover rate 31.43% 25.65% 13.34% 13.52% 12.89% 11.33%
<FN>
<F1>Excludes maximum sales charge of 4.75% of the Fund's offering price.
<F2> Annualized
<F3> Brokerage commissions paid on portfolio transactions increase the cost of securities being purchased or reduce the
proceeds of securities sold, and are not reflected in the Fund's statement of operations. Shares traded on a principal
basis, such as most over-the-counter and fixed-income transactions, are excluded.
</FN>
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
Note 1-Summary of Significant Accounting Policies
The Growth Fund of Washington, Inc. (the "Fund") was incorporated in
Maryland on May 24, 1985. The Fund is registered under the Investment
Company Act of 1940, (the "Act") as amended, as an open-end, diversified
investment company. The Fund's objective is to provide for long-term growth
of capital by investing primarily in securities of companies headquartered
or having a major place of business in Washington, D.C., Maryland or
Virginia. Washington Investment Advisers, Inc. is the Fund's investment
adviser (the "Investment Adviser"). Washington Management Corporation is
the Fund's business manager (the "Business Manager"). The Investment
Adviser and the Business Manager are wholly owned subsidiaries of The
Johnston-Lemon Group, Incorporated. Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc., is the
distributor of the Fund's shares.
Security Valuation: Securities (except for short-term obligations) are
valued at the last sales price on the exchange or national securities
market on which the securities primarily are traded. Securities not listed
on an exchange or national securities market, or securities in which there
were no reported transactions, are valued at the latest reliable quoted bid
price. Short-term obligations with maturities of 60 days or less are valued
at amortized cost, which approximates market value. Any securities for
which reliable recent market quotations are not readily available are
valued at fair value as determined in good faith by a committee appointed
by the Board of Directors.
Premiums received for covered call options written are deferred until
the contract expires or is closed. Such premiums are valued at the last
sales price of the option or, in the absence of a sale, the mean between
the last reliable bid and ask price.
Securities Transactions and Investment Income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recorded on the ex-dividend date and interest income, including, where
applicable, amortization of discount on short-term investments, is recorded
on the accrual basis.
Pursuant to the custodian agreement, the Fund received credits against
its custodian fee for imputed interest on certain balances with the
custodian bank. The custodian fee of $15,723 includes $666 that was paid by
these credits rather than in cash.
Federal Income Taxes: It is the Fund's policy to continue to comply
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income, including
any net realized gain on investments, to its shareholders. Therefore, no
federal income tax provision is required. Cost of securities for tax
purposes is the same as for financial reporting purposes.
Note 2- Investment Adviser and Business Management Fees and Other
Transactions with Affiliates
Pursuant to the Investment Advisory Agreement, the Investment Adviser
receives a fee of 0.375% per annum on the Fund's net assets up to
$100,000,000, decreasing to 0.35% on the net assets in excess of
$100,000,000. The Business Management Agreement provides that the Business
Manager receive a fee of 0.375% per annum on the Fund's first $40,000,000
of net assets, 0.30% on net assets in excess of $40,000,000 but not
exceeding $100,000,000 and 0.25% on net assets in excess of $100,000,000.
The fees are computed daily and paid monthly. The Fund pays all expenses
not assumed by the Investment Adviser or Business Manager but will be
reimbursed in equal parts out of fees paid to those parties to the extent
certain of its expenses exceed applicable state limits. No such limits were
exceeded during the six months ended June 30, 1996.
Expenses paid by the Fund include custodian, stock transfer and
dividend disbursing fees; accounting and recordkeeping expenses;
Distribution Plan expenses; costs of designing, printing, and mailing
reports, prospectuses, proxy statements and notices to its shareholders;
taxes and insurance; expenses of the issuance, sale, or repurchase of
shares of the Fund (including federal and state registration and
qualification expenses); legal and auditing fees and expenses;
compensation, fees and expenses paid to Directors who are not interested
persons of the Fund; association dues; and costs of stationery and forms
prepared exclusively for the Fund.
Pursuant to a Distribution Plan, the Fund pays a fee at a maximum
annual rate of 0.25% of the Fund's net assets. Payments under this plan are
primarily intended to result in the sale and retention of Fund shares
including, but not limited to, advertising, salaries and other expenses
of the Distributor relating to selling or servicing efforts, expenses of
organizing and conducting sales seminars, printing of prospectuses and
reports for other than existing shareholders, preparation and distribution
of advertising material and sales literature and payments to dealers whose
customers purchase Fund shares.
Vista Fund Distributors, Inc. received $8,848 (after allowances to
dealers), as its portion of the sales charge paid by purchasers of the
Fund's shares. Sales charges are not an expense of the Fund and hence are
not reflected in the accompanying Statement of Operations. Johnston, Lemon
& Co. Incorporated, a wholly owned subsidiary of The Johnston-Lemon Group,
Incorporated, earned $33,953 on its retail sales of shares of the Fund and
Distribution Plan fee and received no brokerage commissions resulting from
purchases and sales of securities for the investment account of the Fund.
All Officers and two Directors of the Fund are "affiliated persons"
(as defined in the Act) of the Investment Adviser or Business Manager and
received no remuneration from the Fund in such capacities.
Note 3 - Investment Transactions
The Fund made purchases of investment securities, other than
short-term securities, of $7,031,603 and sales of $8,068,133 during the six
months ended June 30, 1996. Net unrealized gains at June 30, 1996 include
unrealized gains of $25,992,707 and unrealized losses of $387,628.
The Fund may buy and sell put and call options, or write covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities. The Fund
generally purchases put options or writes covered call options to hedge
against adverse movements in the value of portfolio holdings. When a call
option is written, the Fund receives a premium and becomes obligated to
sell the underlying security at a fixed price, upon exercise of the option.
The Fund segregates assets to cover its obligations under option contracts.
The Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Options written are reported as a liability in the
Statement of Assets and Liabilities. Gains or losses are reported in the
Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and
the option is exercised. The risk in buying an option is that the Fund pays
a premium whether or not the option is exercised. The Fund also has the
additional risk of not being able to enter into a closing transaction if a
liquid secondary market does not exist.
The following summarizes written option contract activity during the six
month period:
Number
of
Contracts Amount
Outstanding at January 1, 1996 200 45,648
Contracts opened 0 0
Expired during period (200) (45,648)
Outstanding at June 30, 1996 0 0
Note 4-Capital Stock Transactions
Transactions in capital stock were:
For the For the
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
In shares:
Shares sold 72,832 145,686
Shares issued in rein-
vestment of dividends 4,029 123,106
Total shares issued 76,861 268,792
Shares redeemed (132,469) (303,237)
Net decrease (55,608) (34,445)
In dollars:
Shares sold $ 1,379,583 $ 2,311,798
Shares issued in rein-
vestment of dividends 77,111 2,172,864
Total shares issued 1,456,694 4,484,662
Shares redeemed (2,511,338) (4,809,511)
Net decrease $(1,054,644) $ (324,849)
THE GROWTH FUND OF WASHINGTON
Board of Directors
James H. Lemon, Jr.
Chairman
Chairman of the Board and
Chief Executive Officer,
The Johnston-Lemon Group, Incorporated
Harry J. Lister
President
President, Washington
Management Corporation
Cyrus A. Ansary
President, Investment
Services International
Company
T. Eugene Smith
President,
T. Eugene Smith Inc.
Leonard P. Steuart II
Vice President,
Steuart Investment Co.
Margita E. White
President, Association
for Maximum Service
Television Inc.
Officers
Stephen Hartwell
Executive Vice President
Chairman of the Board,
Washington Management
Corporation
Howard L. Kitzmiller
Senior Vice President,
Secretary and Treasurer
Senior Vice President,
Secretary and Assistant
Treasurer, Washington Management Corporation
Prabha S. Carpenter
Vice President
Vice President, Washington
Investment Advisers, Inc.
Lois A. Erhard
Vice President
Vice President, Washington
Management Corporation
Michael W. Stockton
Assistant Vice President and Assistant Treasurer
Assistant Vice President
and Assistant Treasurer,
Washington Management
Corporation
J. Lanier Frank
Assistant Secretary
Assistant Vice President,
Washington Management
Corporation
Vista Service Center
P.O. Box 419392
Kansas City, MO 64141-6392
1-800-34-VISTA
Office of the Fund and
Business Manager
Washington Management
Corporation
1101 Vermont Avenue, NW
Washington, DC 20005
(202) 842-5665
Investment Adviser
Washington Investment
Advisers, Inc.
Custodian
The Chase Manhattan
Bank, N.A.
Transfer Agent
DST Systems, Inc.
Distributor
Vista Fund
Distributors, Inc.
Independent
Accountants
Johnson Lambert & Co.
Counsel
Dechert Price & Rhoads
This report is for the information of the shareholders of The Growth Fund
of Washington, Inc., but it may 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 September 30, 1996, this report must
also be accompanied by the Fund's most recent calendar quarter statistical
update.
Vista Fund Distributors, Inc., is unaffiliated with the Fund's Business
Manager or Investment Adviser.
GFW-3
