(Logo)
Vista
Family of Mutual Funds
THE
GROWTH FUND OF WASHINGTON
Annual Report
December 31, 1996
Growth of a $10,000 Investment
(Line graph comparing the growth of a $10,000 investment in the Fund,
Standard & Poor's 500 Composite Index, and the Consumer Price Index since
the fund's inception (August 7, 1985) to year end 1996.
Plot Points in Dollars
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 14213
12/31/96 33363 55956 14685
Average Annual Total Return
To December 31, 1996
1 year 5 years 10 years
+9.19% +13.60% +10.65%
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, 1996. 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, 1996 on a $1,000 investment at the 4.75% maximum
sales charge with all distributions reinvested: 10 years: +175.22%, or
+10.65% a year; 5 years: +89.16%, or +13.60% a year; and 12 months: +9.19%.
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 PERSPECTIVE. 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
Nineteen ninety-six marked another year of positive performance for The
Growth Fund of Washington. The Fund's net asset value on December 31, 1996
was $20.00 compared to $18.19 on December 31, 1995. During the year, the
Fund paid income dividends of 6 1/2 cents per share and a long-term capital
gain distribution of 79 cents per share. For the twelve months ended
December 31, 1996, the value of the Fund's shares increased 14.65% while
the unmanaged Standard & Poor's 500 Composite Index was up 22.90%, both
including the reinvestment of distributions. At year-end, the weighted
average price-earnings multiple for the Fund was 13.0 times 1997 estimated
earnings, or 26% less than the S&P 500's multiple of over 17.5 times.
The equity markets advanced against a backdrop of concerns about the
strength of the economy. Any statistic that indicated underlying strength
was accompanied by concerns that the Federal Reserve Board would raise
interest rates. However, this action was not taken. The market advance was
narrow in scope, with big cap issues leading the advance. The economy was
characterized by modest growth with inflation held under control.
The Fund's financial services and banking issues benefitted from this
stable interest rate environment. The telecommunications sector faced a
number of competitive issues and procedural delays, with selective issues
benefitting from alliances and combinations brought about by the
Telecommunications Act of 1996.
On December 31, 1996, The Growth Fund of Washington held 30 securities
in 14 industry groups. The Fund's five largest holdings, representing
43.87% of net assets, were: Federal National Mortgage Association
(10.56%); Federal Home Loan Mortgage Corp. (9.88%); Lockheed Martin
Corporation (9.11%); Richfood Holdings Inc. (7.45%); and Washington Post
Company Class B (6.87%).
During the six months ended December 31, 1996, three new companies
were added to the Fund's portfolio: DIGEX, Inc., a Beltsville,
Maryland-based national Internet service provider of service exclusively to
businesses; Human Genome Sciences, Inc., a Rockville, Maryland-based
company, that is a leader in gene sequencing, with licensing agreements
with major pharmaceutical companies for therapeutic and diagnostic product
development; and Transaction Network Services, Inc., a Herndon,
Virginia-based telecommunications network provider that links vendors,
credit card and other transaction processors. In addition, US Order, Inc.
changed its name to InteliData Technologies Corp.
During the same period, five positions were eliminated: COMSAT Corp.;
PennFed Financial Services, Inc.; Security First Network Bank, FSB;
Tele-Communications Inc., Series A, Liberty Media Group; and Tysons
Financial Corp.
Prospects continue to appear bright for the regional economy despite
slower growth in some parts of the area. Job growth has been concentrated
in the private sector. Many companies with attractive growth dynamics have
been established, especially in the telecommunications and technology
areas. Technologies formerly used exclusively by the government and
military are now being converted to commercial application, creating many
high-growth companies.
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 18, 1997
<TABLE>
<CAPTION>
Investment Portfolio as of December 31, 1996
Number
Industry of Market Percent of
Group Securities<F1> Shares Value Net Assets
<S> <S> <C> <C> <C>
Aerospace Lockheed Martin Corp. 48,563 $ 4,443,515 9.11%
Bethesda-based defense/aerospace
company, that also designs and services
communication and information systems.
Banking & Capital One Financial Corp. 31,000 1,116,000 2.29
Credit Northern Virginia-based general purpose
credit card issuer, with $12.8 billion in
managed loans.
Crestar Financial Corp. 31,000 2,305,625 4.72
Richmond-based bank holding company
with approximately $22.9 billion in assets.
First Citizens Financial Corp.<F2> 32,397 591,245 1.21
Montgomery and Frederick County-based
savings bank with about $700 million in
assets.
NationsBank Corporation 22,200 2,170,050 4.45
A multi-bank holding company with
operations in 16 states and Washington,
DC with $227 billion in assets.
Signet Banking Corp. 66,000 2,029,500 4.16
A multi-bank holding company with over
200 branches in Maryland, Virginia and
Washington, DC with about $12.0 billion
in assets.
TOTAL 8,212,420 16.83
Basic Industry & Danaher Corp. 25,000 1,165,625 2.39
Manufacturing Washington, DC-based manufacturer of
hand tools, automotive & transportation
equipment, and process & environmental
controls.
Biotechnology Human Genome Sciences, Inc.<F2> 15,000 611,250 1.25
Rockville, Maryland-based company, a
leader in gene sequencing, with licensing
agreements with major pharmaceutical
companies for therapeutic and diagnostic
product development.
Computer American Management Systems, Inc.<F2> 39,000 955,500 1.96%
Services & Northern Virginia-based leading supplier
Hardware of information technologies.
DIGEX Inc.<F2> 40,000 415,000 .85
Beltsville, Maryland-based national Internet
service provider of service exclusively to
businesses.
DST Systems, Inc.<F2> 10,400 326,300 .67
Provides information processing and
computer software services and products
primarily to mutual funds.
InteliData Technologies Corp.<F2>
(previously US Order Inc.) 19,300 139,925 .28
Headquartered in Herndon, Virginia, it is
a leader in the smart telephone and home
banking business.
MICROS Systems, Inc.<F2> 26,500 814,875 1.67
Maryland-based manufacturer and
marketer of systems and software for the
hospitality industry.
Transaction Network Services, Inc.<F2> 30,000 345,000 .71
Herndon, Virginia-based telecommunications
network provider that links venders and
credit card and other transaction processors.
TOTAL 2,996,600 6.14
Electronics Harman International Industries, Inc. 15,750 876,094 1.80
Washington, DC-based specialty
manufacturer of electronic and audio
components.
Financial Federal Home Loan Mortgage Corp. 43,800 4,823,475 9.88
Services Northern Virginia-based company which
purchases, securitizes and guarantees
mortgages.
Federal National Mortgage Association 138,320 5,152,420 10.56
Washington, DC-based, it is the nation's
largest residential mortgage funding
operation through the secondary market.
TOTAL 9,975,895 20.44
Food & Richfood Holdings, Inc. 150,000 3,637,500 7.45%
Food Services Virginia-based wholesale supplier to
grocery retailers in the region.
Household The Black & Decker Corp. 10,000 301,250 .62
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> 17,000 580,125 1.19
& Products Washington, DC-based company that sells
office supplies, products and furniture
through catalogues.
Publishing & EZ Communications, Inc.<F2> 15,000 549,375 1.12
Communications Fairfax-based company which acquires,
develops and operates radio stations in
several states.
The Washington Post Co., Class B 10,000 3,351,250 6.87
Washington, DC-based company publishes
"The Washington Post" and "Newsweek;"
owns several TV stations and over 50 cable
TV systems.
TOTAL 3,900,625 7.99
Retail Circuit City Stores, Inc. 35,000 1,054,375 2.16
Richmond-based retailer of audio, video
and brand name consumer electronic
products, and has a presence in the used
car market through CarMax.
Giant Food, Inc., Class A 53,800 1,856,100 3.80
Landover, Maryland-based company which
operates over 170 supermarkets in the
mid-Atlantic region including
Washington, DC.
TOTAL 2,910,475 5.96
Telecommuni- Bell Atlantic Corp. 28,000 1,813,000 3.71%
cations Holding company for the Mid-Atlantic
telephone companies serving a six state
area and Washington, DC.
LCI International, Inc.<F2> 30,000 645,000 1.32
Northern Virginia-based long distance
carrier providing domestic and international
voice & data services.
MCI Communications Corp. 60,000 1,961,250 4.02
Washington, DC-based company which
is the second largest telecommunications
service network in the United States.
TOTAL 4,419,250 9.05
Transportation CSX Corp. 70,000 2,957,500 6.06
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> 410,000 .84
TOTAL INVESTMENT SECURITIES
(cost: $17,990,233) 47,398,124 97.12
Repurchase Agreements:
Prudential Securities Incorporated 1,856,000 3.80
6.40%, issued 12/31/96, $1,856,660 including
interest, due 1/2/97 (collateralized by
$2,212,000 Federal National Mortgage Association
Adjustable Rate Mortgage Bonds, due 5/1/35)
Excess of payables over cash and receivables (452,664) (.92)
NET ASSETS $48,801,460 100.00%
<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
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
as of December 31, 1996
<S> <S> <C> <C>
Assets Investment in securities,
at market (cost: $17,990,233) $47,398,124
Repurchase agreements,
(cost: $1,856,000) 1,856,000
Cash 12,096
Dividends and interest receivable 2,180
Receivable for Fund's shares sold 15,890
Other assets 12,430 $49,296,720
Liabilities Payable for adviser and management services 31,001
Payable for distribution plan 28,985
Payable for Fund's shares repurchased 417,974
Accounts payable and accrued expenses 17,300 495,260
Net Assets Capital stock ($.01 par value, 2,440,169 shares
outstanding, 25,000,000 authorized) 24,401
Paid-in capital 19,359,941
Undistributed investment income 9,793
Undistributed realized capital gains (566)
Unrealized gains 29,407,891 $48,801,460
Net asset value per share $20.00
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Statement of Operations
for the year ended December 31, 1996
<S> <S> <C> <C>
Investment Income
Income:
Dividends $ 721,999
Interest 118,270 $ 840,269
Expenses:
Investment advisory fee 178,474
Business management fee 172,781
Distribution fee 116,761
Transfer agency fee and expenses 75,436
Auditing and legal fees 28,096
Custodian fee and expenses 37,569
Directors' fees 8,000
Postage, stationery and supplies 5,051
Reports to shareholders 14,892
Registration and prospectus expense 14,384
Other 21,813 673,257
Net investment income 167,012
Realized and Unrealized Gain on Investments
Net realized gain on equities, identified
cost basis 1,829,459
Net realized gain on options, identified
cost basis 45,648
Net change in unrealized gain 4,460,111
Net realized and change in unrealized
gain on investments 6,335,218
Net increase in net assets resulting from
operations $6,502,230
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the year ended December 31,
1996 1995
<S> <S> <C> <C>
Increase in Net Assets
Operations:
Net investment income $ 167,012 $ 345,826
Net realized gain on equity investments 1,829,459 2,028,012
Net realized gain on option contracts 45,648 0
Net change in unrealized gain on
investments 4,460,111 11,999,577
Net increase in net assets
resulting from operations 6,502,230 14,373,415
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (156,885) (336,934)
Distributions from net realized gains (1,874,144) (2,029,200)
Total (2,031,029) (2,366,134)
Capital Stock Transactions:
Net decrease in net assets resulting
from capital stock transactions (1,066,834) (324,849)
Total increase in net assets 3,404,367 11,682,432
Net Assets:
Beginning of year 45,397,093 33,714,661
End of year $48,801,460 $45,397,093
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Financial Highlights
for a share outstanding throughout the fiscal year
For the year ended December 31,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $18.19 $13.32 $15.37 $14.16 $12.34
Income from investment operations:
Net investment income .07 .14 .18 .14 .14
Net realized and unrealized gain (loss)
on investments 2.60 5.72 (1.61) 1.63 2.03
Total from investment operations 2.67 5.86 (1.43) 1.77 2.17
Less Distributions:
Dividends (from net investment
income) (.07) (.14) (.18) (.14) (.13)
Distributions (from capital gains) (.79) (.85) (.44) (.42) (.22)
Total distributions (.86) (.99) (.62) (.56) (.35)
Net asset value, end of year $20.00 $18.19 $13.32 $15.37 $14.16
Total return<F1> 14.65% 44.25% (9.32%) 12.52% 17.72%
Ratios/supplemental data:
Net assets, end of year (in thousands) $48,801 $45,397 $33,715 $39,990 $37,162
Ratio of expenses to average net assets 1.42% 1.46% 1.50% 1.55% 1.55%
Ratio of net income to average net assets .35% .87% 1.20% .87% 1.04%
Average commissions paid<F2> 6.96 cents
Portfolio turnover rate 24.20% 25.65% 13.34% 13.52% 12.89%
<FN>
<F1> Excludes maximum sales charge of 4.75% of the Fund's offering price.
<F2> 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>
</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. 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 $37,569 includes $2,254 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 year ended December 31, 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
registration and state fees); 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 $13,111 (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 $67,317 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 $10,980,566 and sales of $13,048,373 during the
year ended December 31, 1996. Net unrealized gains at December 31, 1996
include unrealized gains of $29,743,866 and unrealized losses of $335,975.
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
year :
Number
of
Contracts Amount
Outstanding at January 1, 1996 200 $45,648
Contracts opened 0 0
Expired during period (200) (45,648)
Outstanding at December 31, 1996 0 $ 0
Note 4_Capital Stock Transactions
Transactions in capital stock were:
For the Year Ended
December 31
1996 1995
In shares:
Shares sold 108,114 145,686
Shares issued in rein-
vestment of dividends 92,912 123,106
Total shares issued 201,026 268,792
Shares redeemed (257,397) (303,237)
Net decrease (56,371) (34,445)
In dollars:
Shares sold $ 2,072,038 $2,311,798
Shares issued in rein-
vestment of dividends 1,861,005 2,172,864
Total shares issued 3,933,043 4,484,662
Shares redeemed (4,999,877) (4,809,511)
Net decrease $(1,066,834) $ (324,849)
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, 1996, 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,
1996, 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, 1996,
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 27, 1997
(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,
Assistant Secretary,
and Assistant Treasurer
Assistant Vice President and Assistant Treasurer,
Washington Management Corporation
J. Lanier Frank
Assistant Vice President
Assistant Vice President, Washington Management Corporation
(Logo)
Vista
Family of Mutual Funds
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
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 Fund Distributors, 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, 1997, 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
The Growth Fund of Washington, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
