(Logo)
Vista
Family of Mutual Funds
THE GROWTH FUND OF WASHINGTON
10th Anniversary
Annual Report
December 31, 1995
Fellow Shareholders
The year 1995 marked not only The Growth Fund of Washington's 10-year
anniversary, but also an outstanding performance year. The Fund's net
asset value on December 31, 1995 was $18.19 compared to $13.32 on December
31, 1994. During the year, the Fund paid income dividends of 14 cents per
share and a long-term capital gain distribution of 85 cents per share. For
the twelve months ended December 31, 1995, the value of the Fund's shares
increased 44.25% while the unmanaged Standard & Poor's 500 Composite Index
was up 37.53%, both including the reinvestment of distributions. At
year-end, the weighted average price earnings multiple for the Fund was 14
times 1996 estimated earnings, or 17% less than the S&P 500's multiple of
over 17 times.
The Federal Reserve lowered rates by 25 basis points, at its December
meeting, due to indicators pointing to inflation under control and some
softness in the economy. The Fund benefitted from the decline in rates.
The Fund's financial services and banking issues were particularly strong.
The information services, telecommunications and consumer cyclical sectors
also performed well. The Growth Fund of Washington's results in 1995 were
achieved without significant reliance on technology issues. The
preponderance of the Fund's holdings are in stocks with lower
price-earnings multiples, and attractive growth rates that are expected to
offer shareholders a softer ride over the long term.
On December 31, 1995, The Growth Fund of Washington held 30 securities
in 16 industry groups. The Fund's five largest holdings, representing
42.13% of net assets, were: Federal National Mortgage Association (11.50%);
Lockheed Martin Corporation (8.70%); Federal Home Loan Mortgage Corporation
(8.06%); CSX Corporation (7.04%); and The Washington Post Company Class B
(6.83%). Fannie Mae and Freddie Mac were up substantially for the year.
Fannie Mae also announced a recapitalization plan that should energize
earnings growth over the next three years.
During the six months ended December 31, 1995, six new companies were
added to the Fund's portfolio: Danaher Corporation, a diversified
industrial manufacturer based in Washington, D.C. with an above average
growth rate in earnings, well-regarded management, and strong internal
ownership of stock; LCI International, a McLean, Virginia headquartered
long distance telephone company that has one of the fastest growth rates in
the industry; Martek Biosciences Corporation, based in Columbia, Maryland,
which is expected to get approval to market algae-based products that
supplement infant formula which, according to many studies, improves mental
and visual acuity; Primark Corporation, which has a major presence in the
Northern Virginia suburbs and is a premier information services company
with expected growth in earnings of over 20% annually; Sterile Concepts, a
Richmond, Virginia company that is the second leading provider of custom
procedure trays to the hospital industry with strong growth prospects; and
DST Systems, which provides information processing services to the mutual
fund industry and is expected to have above average growth in revenues and
earnings over the next several years.
During the same period, five positions were eliminated, either because
they met the adviser's price target objectives or there was a deterioration
in their fundamentals. The five holdings sold were: Arnold Industries,
Lafarge Corporation, Loyola Capital, Manor Care, and United Dominon Realty
Trust.
Prospects continue to be bright for the regional economy despite
slower growth in some parts of the region. There has been some job growth
in the private sector to offset some of the slowdown elsewhere. There
appear to be many attractive opportunities in the region. In banking, the
trend toward consolidation should continue. The Fund's selective holdings
of banking issues are expected to benefit from industry trends. The
interest rate environment and the legislative outlook for the financial
services companies is very positive. Telecommunications legislation that
is expected to be signed in 1996, should stimulate growth sector-wide, to
the benefit of the Fund.
As always, we welcome your comments, and we look forward to reporting
to you again in six months.
Sincerely,
(Signatures)
James H. Lemon, Jr. Harry J. Lister
Chairman President
February 9, 1996
(Chart 1)
A line graph comparing the value of a $10,000 investment at inception on
August 7, 1995 in the Growth Fund of Washington with the Consumer Price
Index and Standard & Poor's 500 Composite Index.
DATE GFW S&P500 CPI
9/1/85 9525 10000 10000
12/31/85 10119 11428 10120
12/31/86 11551 13554 10231
12/31/87 12041 14259 10685
12/31/88 14115 16610 11157
12/31/89 16304 21859 11676
12/31/90 13290 21177 12389
12/31/91 16794 27595 12768
12/31/92 19770 29694 13139
12/31/93 22245 32670 13500
12/31/94 20173 33126 13861
12/31/95 29099 45530 14222
Average Annual Total Return to December 31, 1995
1 year 5 years 10 years
+37.44 +15.84 +10.60
Growth of a $10,000 Investment
The Fund's results reflect payment of the maximum sales charge of 4.75%,
thus the net investment was $9,525. All dividends and capital gain
distributions are reinvested in additional shares without a sales charge.
The graph covers the period of the Fund's inception (August 7, 1985) to
December 31, 1995. The indexes are unmanaged and do not reflect sales
charges, commissions or expenses. Past results are not predictive of
future results.
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 December 31, 1995 on a $1,000 investment at the 4.75% maximum
sales charge with all distributions reinvested: 10 years: +173.87%, or
+10.60% a year; 5 years: +108.55%, or +15.84% a year; and 12 months:
+37.44%. Sales charges are lower for accounts of $100,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. THE RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND ARE NOT GUARANTEED AND WILL
FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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. All investments are subject to certain
risks. For example, those which include common stocks are affected by
fluctuating stock prices. Accordingly, investors should maintain a
long-term perspective.
<TABLE>
<CAPTION>
Investment Portfolio as of December 31, 1995
Number
Industry of Market Percent of
Group Securities<F1> Shares Value Net Assets
<S> <S> <C> <C> <C>
Aerospace Lockheed Martin Corporation 50,000 $ 3,950,000 8.70%
Bethesda-based defense/aerospace
company, that also designs and services
communication and information systems.
Banking & Capital One Financial Corp. 66,000 1,575,750 3.47
Credit A spin-off credit card company of Signet
Banking Corporation.
Crestar Financial Corporation 31,000 1,832,875 4.04
Richmond-based bank holding company
with approximately $18 billion in assets.
First Citizens Financial Corp.<F2> 29,452 559,588 1.23
Montgomery and Frederick County-based
savings bank with over $600 million in
assets.
NationsBank Corporation 22,200 1,545,675 3.41
A multi-bank holding company with over
1,700 offices in the Eastern United States.
Riggs National Corporation<F2> 20,000 260,000 .57
Washington, DC-based bank holding
company that owns Riggs National Bank
with over $4 billion in assets.
Signet Banking Corporation 66,000 1,567,500 3.45
A multi-bank holding company with over
250 branches in Maryland, Virginia and
Washington, DC.
TOTAL 7,341,388 16.17
Basic Danaher Corp. 25,000 793,750 1.75
Industry & Washington, DC-based manufacturer of
Manufacturing hand tools, automotive & transportation
equipment, and process & environmental
controls.
Biotechnology Martek Biosciences Corp.<F2> 25,000 631,250 1.39
Maryland-based developer of products
derived from microalgae, including nutri-
tional products, pharmaceutical research
and development tools, diagnostics and
potential new drugs.
Computer American Management Systems<F2> 26,000 $ 780,000 1.72%
Services & Northern Virginia-based leading supplier
Hardware of information technologies.
DST Systems, Inc.<F2> 10,400 296,400 .65
Provides information processing and
computer software services and products
primarily to mutual funds.
MICROS Systems, Inc.<F2> 32,500 1,600,625 3.53
Maryland-based manufacturer and
marketer of systems and software for the
hospitality industry.
TOTAL 2,677,025 5.90
Electronics Harman International Industries, Inc. 15,750 631,969 1.39
Washington, DC-based specialty
manufacturer of electronic and audio
components.
Financial Federal Home Loan Mortgage Corp. 43,800 3,657,300 8.06
Services Northern Virginia-based company which
purchases, securitizes and guarantees
mortgages.
Federal National Mortgage Association 42,080 5,223,180 11.50
Washington, DC-based, it is the nation's
largest residential mortgage funding
operation through the secondary market.
TOTAL 8,880,480 19.56
Food & Richfood Holdings, Inc. 100,000 2,675,000 5.89
Food Services Virginia-based wholesale supplier to
grocery retailers of the region.
Health Sterile Concepts Holdings Inc. 20,000 290,000 .64
Services & Richmond-based company is the second
Supplies largest U.S. producer of surgical and
clinical customized procedure trays.
Household The Black & Decker Corporation 10,000 352,500 .78
Products Maryland-based maker of a wide range of
products sold to residential and com-
mercial markets in over 100 countries.
Paper James River Corporation of Virginia 10,000 $ 241,250 .53%
Products Richmond-based marketer and producer of
paper and plastic products.
Publishing & Cadmus Communications Corp. 27,500 742,500 1.64
Communications Richmond-based graphic communications
company offering specialized products
and services in printing, marketing and
publishing.
EZ Communications, Inc.<F2> 15,000 270,000 .59
Fairfax-based company which acquires,
develops and operates radio stations in
several states.
Primark Corporation<F2> 25,000 750,000 1.65
A premier information services company
with a major presence in Northern Virginia.
The Washington Post Company Class B 11,000 3,102,000 6.83
Washington, DC-based company publishes
"The Washington Post" and "Newsweek;"
owns several TV stations and 53 cable
TV systems.
TOTAL 4,864,500 10.71
Real Estate Host Marriott Corporation<F2> 25,000 331,250 .73
Bethesda-based owner and operator of
lodging properties worldwide.
Retail Circuit City Stores, Inc. 20,000 552,500 1.22
Richmond-based retailer of audio, video
and brand name consumer electronic
products.
Giant Food, Inc. Class A 53,800 1,694,700 3.73
Landover, Maryland-based company which
operates over 150 supermarkets in Delaware,
Maryland, Virginia and Washington, DC.
TOTAL 2,247,200 4.95
Telecommuni- Bell Atlantic Corporation 28,000 $1,872,500 4.13%
cations Holding company for the Mid-Atlantic
telephone companies serving a six state
area and Washington, DC.
LCI International, Inc.<F2> 30,000 615,000 1.35
Northern Virginia-based long distance
carrier providing domestic and inter-
national voice and data services.
MCI Communications 60,000 1,567,500 3.45
Washington, DC-based company which is
the second largest telecommunications
service network in the United States.
TOTAL 4,055,000 8.93
Transportation CSX Corporation 70,000 3,193,750 7.04
Richmond-based holding company for
transportation and natural resources with
railroad, barge, trucking, pipeline and
ocean shipping units.
Stocks in initial period of acquisition<F2> 1,900 .01
TOTAL INVESTMENT SECURITIES
(cost: $18,228,581) 43,158,212 95.07
Repurchase Agreements:
Donaldson, Lufkin & Jenrette Securities
Corporation 1,569,000 3.46
5.00%, issued 12/29/95, $1,569,872
including interest, due 1/2/96 (collateral-
ized by $6,847,000 United States
Treasury Strip Interest due 5/15/19)
Options Written:
Riggs National Corporation (27,500) (.06)
Covered call contracts (20,000 shares of
stock subject to call) exercisable through
February 16, 1996 at $12.50
Excess of cash and receivables over payables 697,381 1.53
NET ASSETS $45,397,093 100.00%
<FN>
<F1> Securities listed are common stocks unless otherwise indicated.
<F2>Indicates security which has not paid dividends during the preceding twelve months.
</FN>
</TABLE>
See Notes to Financial Statements
Statement of Assets and Liabilities
as of December 31, 1995
Assets
Investment in securities,
at market (cost: $18,228,581) $43,158,212
Repurchase agreements
(cost: $1,569,000) 1,569,000
Cash 12,063
Dividends and interest receivable 5,554
Receivable for Fund's shares sold 15,838
Receivable for securities sold 1,219,515
Other assets 12,431 $45,992,613
Liabilities
Payable for adviser and management
services 28,056
Payable for distribution plan 19,880
Payable for Fund's shares repurchased 73,346
Payable for securities purchased 428,550
Option write premiums, net 27,500
Accounts payable and accrued expenses 18,188 595,520
Net Assets
Capital stock ($.01 par value, 2,496,540
shares outstanding 25,000,000 shares
authorized) 24,966
Paid-in capital 20,426,212
Undistributed investment income (334)
Undistributed realized capital gains (1,530)
Unrealized gains, equity investments 24,929,631
Unrealized gains, option contracts 18,148 $45,397,093
Net asset value per share $18.19
See Notes to Financial Statements
Statement of Operations
for the year ended December 31, 1995
Investment Income
Income:
Dividends $ 776,023
Interest 146,987 $ 923,010
Expenses:
Investment advisory fee 148,597
Business management fee 147,686
Distribution fee 86,317
Transfer agency fee and expenses 77,299
Auditing and legal fees 22,952
Custodian fee and expenses 37,443
Directors' fees 9,400
Postage, stationery and supplies 2,888
Reports to shareholders 16,833
Registration and prospectus expenses 13,342
Other 14,427 577,184
Net investment income 345,826
Realized and Unrealized Gain on Investments
Net realized gain on equities, identified
cost basis 2,028,012
Net change in unrealized gain 11,999,577
Net realized and change in unrealized
gain on investments 14,027,589
Net increase in net assets resulting from
operations $14,373,415
See Notes to Financial Statements
Statement of Changes in Net Assets
For the year ended December 31,
1995 1994
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 345,826 $ 452,978
Net realized gain on equity investments 2,028,012 1,052,894
Net realized gain on option contracts 0 24,418
Net change in unrealized gain on
investments 11,999,577 (5,100,757)
Net increase (decrease) in net assets
resulting from operations 14,373,415 (3,570,467)
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (336,934) (447,790)
Distributions from net realized gains (2,029,200) (1,077,494)
Total (2,366,134) (1,525,284)
Capital Stock Transactions:
Net decrease in net assets resulting
from capital stock transactions (324,849) (1,179,874)
Total increase (decrease) in net assets 11,682,432 (6,275,625)
Net Assets:
Beginning of year 33,714,661 39,990,286
End of year $45,397,093 $33,714,661
See Notes to Financial Statements
<TABLE>
<CAPTION>
Financial Highlights
for a share outstanding throughout the fiscal year
For the year ended December 31,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $13.32 $15.37 $14.16 $12.34 $10.62
Income from investment operations:
Net investment income .14 .18 .14 .14 .18
Net realized and unrealized gain
(loss) on investments 5.72 (1.61) 1.63 2.03 2.54
Total from investment operations 5.86 (1.43) 1.77 2.17 2.72
Less Distributions:
Dividends (from net investment
income) (.14) (.18) (.14) (.13) (.18)
Distributions (from capital gains) (.85) (.44) (.42) (.22) (.27)
Total distributions (.99) (.62) (.56) (.35) (1.00)
Net asset value, end of year $18.19 $13.32 $15.37 $14.16 $12.34
Total return<F1> 44.25% (9.32%) 12.52% 17.72% 26.37%
Ratios/supplemental data:
Net assets, end of year (in thousands) $45,397 $33,715 $39,990 $37,162 $35,266
Ratio of expenses to average net assets 1.46% 1.50% 1.55% 1.55% 1.67%
Ratio of net income to average net assets .87% 1.20% .87% 1.04% 1.43%
Portfolio turnover rate 25.65% 13.34% 13.52% 12.89% 11.33%
<FN>
<F1>Excludes maximum sales charge of 4.75%.
</FN>
</TABLE>
See Notes to Financial Statements
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. Washington Investment Advisers, Inc. is the Fund's
investment adviser (the "Investment Adviser"). The Chase Manhattan Bank,
N.A. served as the Fund's Sub-Investment Adviser (the "Sub-Adviser") from
May 1, 1993 through April 30, 1995. 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 Broker-Dealer Services, Inc.
(the "Distributor"), a wholly owned subsidiary of Concord Holding
Corporation, which, in turn, is 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, so long as such valuation continues to constitute
fair value as determined by a committee appointed by the Board of
Directors. Any securities for which reliable recent market quotations are
not readily available are valued at fair value as determined in good faith
by such committee.
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. Effective January 1, 1995 the Fund
incorporated Statement of Financial Accounting Standards 119, Disclosure
about Derivative Financial Instruments and Fair Value of Financial
Instruments, which requires additional disclosures about amounts, nature
and terms of derivative financial instruments including option contracts.
The implementation of the Statement had no significant effect on the
financial statements.
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 $37,443 includes $544 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, Sub-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 Sub-Adviser received a fee from the Investment Adviser
equal to one-half of the Investment Adviser's fee from May 1, 1993 through
April 30, 1995. The Business Management Agreement provides that the
Business Manager receives 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 year ended December 31, 1995. 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 Broker-Dealer Services, Inc. received $13,631 (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 $66,843 on its retail sales of shares of the Fund and
Distri-bution Plan fee and received net brokerage commissions of $1,096
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 $9,489,357 and sales of $11,582,721 during the
year ended December 31, 1995. Net unrealized gains at December 31, 1995
include unrealized gains of $24,957,431 and unrealized losses of $27,800.
The following summarizes written option contract activity during 1995:
Number
of
Contracts Amount
Balance as of January 1, 1995 0 $ 0
Written during the year 230 48,183
Exercised during the year (30) (2,535)
Balance as of December 31, 1995 200 45,648
Market price adjustment (18,148)
Market value as of December 31, 1995 $27,500
Average market value of outstanding
contracts from October 18, 1995 to
December 31, 1995 $42,054
Note 4 - Capital Stock Transactions
Transactions in capital stock were:
For the Year Ended
December 31
1995 1994
In shares:
Shares sold 145,686 117,658
Shares issued in reinvestment
of dividends 123,106 103,492
Total shares issued 268,792 221,150
Shares redeemed 303,237 (292,224)
Net decrease (34,445) (71,074)
In dollars:
Shares sold $ 2,311,798 $ 1,779,663
Shares issued in reinvestment
of dividends 2,172,864 1,388,840
Total shares issued 4,484,662 3,168,503
Shares redeemed (4,809,511) (4,348,377)
Net decrease $ (324,849) $(1,179,874)
Report of Independent Accountant
The Board of Directors and Shareholders
The Growth Fund of Washington, Inc.
Washington, DC
We have audited the accompanying statement of assets and liabilities
and investment portfolio of The Growth Fund of Washington, Inc. as of
December 31, 1995, the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of December 31,
1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Growth Fund of Washington, Inc. as of December 31, 1995,
the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended in
conformity with generally accepted accounting principles.
(Signature)
JOHNSON LAMBERT & CO.
Bethesda, MD
January 26, 1996
(Logo)
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.
1101 Vermont Avenue, NW
Washington, DC 20005
Custodian
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, NY 10081
Transfer Agent
DST Systems, Inc.
210 West 10th Street
Kansas City, MO 64105
800-34-VISTA
Distributor
Vista Broker-Dealer Services, Inc.
125 West 55th Street
New York, NY 10019
Counsel
Dechert Price & Rhoads
1500 K Street, NW
Washington, DC 20005
Independent
Accountants
Johnson Lambert & Co.
7500 Old Georgetown Road
Bethesda, MD 20814
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 March 31, 1996, this report must also
be accompanied by the Fund's most recent calendar quarter statistical
update.
Vista Broker-Dealer Services, Inc., is unaffiliated with the Fund's
Business Manager or Investment Adviser.
GFW-3
The Growth Fund of Washington, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
