(Logo)
Vista
Family of Mutual Funds
(Logo)
THE GROWTH FUND OF WASHINGTON
(Graphic depicting Eastern United States with Virginia and Maryland
highlighted)
Annual Report
December 31, 1997
Growth of a $10,000 Investment
(Chart 1)
(Line graph showing the growth of a $10,000 investment in The Growth Fund
of Washington, as compared to the S&P 500 and the Consumer Price Index. An
inset table shows Average Annual Total Return to December 31, 1997 as
+30.06% for 1 year, +17.02% for 5 years, and +13.68% for 10 years.)
PLOT POINTS IN DOLLARS
DATE GFW S&P 500 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
12/31/97 45561 74598 14954
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, 1997. 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, 1997 on a $1,000 investment at the 4.75% maximum
sales charge with all distributions reinvested: 10 years: +260.55%, or
+13.68% a year; 5 years: +119.45%, or +17.02% a year; and 12 months:
+30.06%. 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, OR ANY OTHER AGENCY, ENTITY OR P-
ERSON.
Fellow Shareholders
The Growth Fund of Washington performed exceptionally well during
1997. The Fund's net asset value increased to $26.09 on December 31, 1997
from $20.00 on December 31, 1996. In addition, the Fund distributed income
dividends of 8 1/2 cents per share, a short-term capital gain of 25 cents
per share and a long-term capital gain of 86 cents per share during the
year. For the twelve months ended December 31, 1997, the value of the
Fund's shares outperformed the market, rising 36.56%, while the unmanaged
Standard & Poor's 500 Composite Index rose 33.36%, both including the
reinvestment of distributions. At year-end, the portfolio-weighted average
price-earnings multiple for the Fund was 15.3 times 1998 estimated
earnings, or 26% less than the S&P 500's multiple of 20.7 times.
During 1997, the equity markets advanced based on the strength of the
economy, accompanied by severe volatility from week to week. In late
October, the Dow Jones Industrial Average and Standard & Poor's 500
Composite Index both fell more than 10% for the first time in more than 10
years, after having reached all-time highs earlier in the year. The markets
continued to focus on possible Federal Reserve Board action. Inflation
continued to stay below expectations, remaining at the lowest levels in
more than a decade.
On December 31, 1997, The Growth Fund of Washington held 28 securities
in 14 industry groups. The five largest holdings, representing 45.58% of
net assets, were: Freddie Mac (11.92%); Fannie Mae (11.88%); The Washington
Post Co., Class B (7.89%); Lockheed Martin Corp. (7.76%); and CSX Corp.
(6.13%).
Since our last report to you six months ago, the Fund has added three
companies to its portfolio: Allied Capital Corporation, a real estate
investment trust (REIT) and business development company based in
Washington, DC that primarily makes commercial real estate loans to small
businesses in exchange for mortgage liens; Jackson Hewitt Inc., a personal
services firm based in Virginia Beach, Virginia, operates franchised and
company-owned offices that cater to federal and state tax preparation for
individuals; and Prime Retail, Inc., another REIT, based in Baltimore,
Maryland, that owns, develops and manages factory direct outlet malls
nationwide.
During the same period, the Fund eliminated its positions in three
companies: MCI Communications Corp.; Seibels Bruce Group, Inc.; and Telco
Communications Group.
In addition, the separate acquisitions of two Fund holdings, announced
during the first half of the year, were completed and the Fund's holdings
were replaced with shares of the acquiring companies. First Citizens
Financial Corp. was acquired by Provident Bankshares Corporation and Signet
Banking Corp. was acquired by First Union Corporation.
Prospects for the regional economy continue to appear bright despite
slower growth in some areas. The pace of growth was reasonable with
inflation under control. Consolidation activity in the banking industry
continued in the second half of the year, with higher and higher multiples
being paid on book values and earnings. Strategic combinations in the
telecommunications area also increased during this period. Again, your Fund
is well-positioned to benefit, directly or indirectly, from these trends,
which are expected to continue.
With the general market at historic highs, one can expect continuing
volatility and the possibility of lower prices. Your Fund's
lower-than-average price-earnings ratio should provide some protection and
we encourage you to maintain a long-term perspective toward your holdings.
We welcome your comments, as always, and look forward to reporting to
you again in six months.
Sincerely,
(Signature) (Signature)
James H. Lemon, Jr. Harry J. Lister
Chairman President
February 18, 1998
<TABLE>
<CAPTION>
Investment Portfolio as of December 31, 1997
Number
Industry of Market Percent of
Group Securities<F1> Shares Value Net Assets
<S> <S> <C> <C> <C>
Aerospace Lockheed Martin Corp. 48,563 $ 4,783,455 7.76%
Bethesda-based defense/aerospace company,
that also designs and services communica-
tion and information systems.
Banking Capital One Financial Corp. 31,000 1,679,812 2.73
Northern Virginia-based general purpose
credit card issuer, with $14.2 billion in
managed loans.
Crestar Financial Corp. 62,000 3,534,000 5.73
Richmond-based bank holding company
with approximately $24.9 billion in assets.
First Union Corporation 72,600 3,720,750 6.04
The sixth largest bank holding company
in the country serving 12 million corporate
and retail customers in national, investment,
and mortgage banking.
NationsBank Corporation 44,400 2,700,075 4.38
A multi-bank holding company with
operations in many states and Washington,
DC with $310 billion in assets.
Provident Bankshares Corporation 24,832 1,586,144 2.57
Baltimore-based bank holding company for
Provident Bank.
TOTAL 13,220,781 21.45
Biotechnology Human Genome Sciences, Inc.<F2> 20,000 795,000 1.29
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> 44,000 858,000 1.39
Services & Northern Virginia-based leading supplier
Hardware of information technologies.
MICROS Systems, Inc.<F2> 15,500 697,500 1.13
Maryland-based manufacturer and marketer
of systems and software for the hospitality
industry.
TOTAL 1,555,500 2.52
Financial Fannie Mae (formerly Federal National 128,320 7,322,260 11.88%
Services Mortgage Association)
Washington, DC-based, it is the nation's
largest residential mortgage funding
operation through the secondary market.
Freddie Mac (formerly Federal Home Loan 175,200 7,347,450 11.92
Mortgage Association)
Northern Virginia-based company which
purchases, securitizes and guarantees
mortgages.
SLM Holding Corp. (formerly Student Loan 5,000 695,625 1.13
Marketing Association)
Washington, DC-based company providing
the largest source of funding and servicing
of education loans.
TOTAL 15,365,335 24.93
Health Services Trigon Healthcare, Inc.<F2> 31,700 828,163 1.34
Richmond-based managed health care
company serving approximately 2 million
members.
Manufacturing Danaher Corp. 25,000 1,578,125 2.56
Washington, DC-based manufacturer of
hand tools, automotive & transportation
equipment, and process & environmental
controls.
Harman International Industries, Inc. 15,750 668,391 1.08
Washington, DC-based specialty
manufacturer of electronic and audio
components.
The Black & Decker Corp. 10,000 390,625 .63
Maryland-based maker of a wide range of
products sold to residential and commercial
markets in over 100 countries.
TOTAL 2,637,141 4.27
Personal Services Jackson Hewitt Inc.<F2> 12,500 $ 850,000 1.38%
Located in Virginia Beach, it is the nation's
second largest tax preparation service.
Publishing & American Radio Systems Corporation, Class A<F2> 13,500 719,719 1.17
Communications Owns and operates AM/FM radio stations
nationwide.
UOL Publishing, Inc.<F2> 30,000 495,000 .80
McLean, Virginia-based publisher of
interactive and Web-based courseware for
online continuing education.
The Washington Post Co., Class B 10,000 4,865,000 7.89
Washington, DC-based company publishes
"The Washington Post" and "Newsweek;"
owns several TV stations and over 50 cable
TV systems.
TOTAL 6,079,719 9.86
Real Estate Allied Capital Corporation 23,548 525,100 .85
Investment Washington, DC-based REIT and business
Trusts development company that primarily makes
commercial real estate loans to small
businesses in exchange for mortgage liens.
Prime Retail, Inc. 12,500 177,344 .29
Baltimore-based REIT involved in the
ownership, development, construction,
acquisition, leasing, marketing and
management of 28 factory outlet centers
nationwide.
TOTAL 702,444 1.14
Retail Circuit City Stores, Inc. 35,000 1,244,688 2.02
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 1,812,387 2.94
Landover, Maryland-based company which
operates over 175 supermarkets and
pharmacies in the mid-Atlantic region
including Washington, DC.
TOTAL 3,057,075 4.96
Telecommuni- Bell Atlantic Corp. 28,000 2,548,000 4.13%
cations Holding company for the mid-Atlantic
telephone companies serving a multi-state
area and Washington, DC.
LCI International, Inc.<F2> 30,000 922,500 1.50
Northern Virginia-based long distance
carrier providing domestic and international
voice & data services.
TOTAL 3,470,500 5.63
Transportation CSX Corp. 70,000 3,780,000 6.13
Richmond-based holding company for
transportation and natural resources with
railroad, barge, trucking, pipeline, and
ocean shipping units.
Wholesale Richfood Holdings, Inc. 110,000 3,107,500 5.04
Food Services Virginia-based wholesale supplier to
grocery retailers in the region.
TOTAL INVESTMENT SECURITIES
(cost: $16,610,630) 60,232,613 97.70
Repurchase Agreements:
Donaldson, Lufkin & Jenrette Securities Corporation 969,000 1.57
5.90%, issued 12/31/97, $969,318 including interest,
due 1/2/98 (collateralized by $4,306,000 United States
Treasury Strip Interest, due 5/15/22)
Excess of cash and receivables over payables 447,443 .73
NET ASSETS $61,649,056 100.00%
<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, 1997
Assets
Investment in securities,
at market (cost: $16,610,630) $60,232,613
Repurchase agreements,
(cost: $969,000) 969,000
Cash 11,191
Dividends and interest receivable 6,412
Receivable for Fund's shares sold 506,896
Other assets 11,648 $61,737,760
Liabilities
Payable for adviser and management services 36,866
Payable for distribution plan 22,078
Payable for Fund's shares repurchased 3,361
Accounts payable and accrued expenses 26,399 88,704
Net Assets
Capital stock ($.01 par value, 2,362,463 shares
outstanding, 25,000,000 authorized) 23,624
Paid-in capital 17,951,131
Undistributed investment income 3,070
Undistributed realized capital gains 49,248
Unrealized gains 43,621,983 $61,649,056
Net asset value per share $26.09
See Notes to Financial Statements
Statement of Operations
for the year ended December 31, 1997
Investment Income
Income:
Dividends $ 781,356
Interest 75,367$ 856,723
Expenses:
Investment advisory fee 201,092
Business management fee 190,793
Distribution fee 84,223
Transfer agent fee 72,000
Auditing and legal fees 20,817
Custodian fee 37,489
Directors' fees 7,600
Postage, stationery and supplies 3,470
Reports to shareholders 16,111
Registration and prospectus 10,356
Other 25,465 669,416
Net investment income 187,307
Realized and Unrealized Gain on Investments
Net realized gain on equities, identified
cost basis 2,545,592
Net change in unrealized gain 14,214,092
Net realized and change in unrealized
gain on investments 16,759,684
Net increase in net assets resulting from
operations $16,946,991
See Notes to Financial Statements
Statement of Changes in Net Assets
For the year ended December
31,
1997 1996
Increase in Net Assets
Operations:
Net investment income $ 187,307 $ 167,012
Net realized gain on equity investments 2,545,592 1,829,459
Net realized gain on option contracts - 45,648
Net change in unrealized gain on
investments 14,214,092 4,460,111
Net increase in net assets resulting
from operations 16,946,991 6,502,230
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (194,029) (156,885)
Distributions from net realized gains (2,495,778) (1,874,144)
Total (2,689,807) (2,031,029)
Capital Stock Transactions:
Net decrease in net assets resulting
from capital stock transactions (1,409,588) (1,066,834)
Total increase in net assets 12,847,596 3,404,367
Net Assets:
Beginning of year 48,801,460 45,397,093
End of year $61,649,056 $48,801,460
See Notes to Financial Statements
Financial Highlights
for a share outstanding throughout the fiscal year
For the year ended December 31,
1997 1996 1995 1994 1993
Net asset value, beginning of year $20.00 $18.19 $13.32 $15.37 $14.16
Income from investment operations:
Net investment income .09 .07 .14 .18 .14
Net realized and unrealized gain (loss)
on investments 7.20 2.60 5.72 (1.61) 1.63
Total from investment operations 7.29 2.67 5.86 (1.43) 1.77
Less Distributions:
Dividends (from net investment
income) (.09) (.07) (.14) (.18) (.14)
Distributions (from capital gains) (1.11) (.79) (.85) (.44) (.42)
Total distributions (1.20) (.86) (.99) (.62) (.56)
Net asset value, end of year $26.09 $20.00 $18.19 $13.32 $15.37
Total return<F1> 36.56% 14.65% 44.25% (9.32%) 12.52%
Ratios/supplemental data:
Net assets,end of year (in thousands) $61,649 $48,801 $45,397 $33,715 $39,990
Ratio of expenses to avg. net assets 1.25% 1.42% 1.46% 1.50% 1.55%
Ratio of net income to avg. net assets .35% .35% .87% 1.20% .87%
Average commissions paid<F2> 6.55 cents 6.96 cents
Portfolio turnover rate 13.03% 24.20% 25.65% 13.34% 13.52%
<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.
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 under policies approved 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 $37,489 includes $6,038 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.
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.
Johnston, Lemon & Co. Incorporated, a wholly owned subsidiary of The
Johnston-Lemon Group, Incorporated, earned $48,283 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. Sales charges are not an expense of the
Fund and hence are not reflected in the accompanying Statement of
Operations.
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 $6,811,942 and sales of $10,288,892 during the
year ended December 31, 1997. Net unrealized gains at December 31, 1997
include unrealized gains of $43,621,983 and no unrealized losses.
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.
Note 4 - Capital Stock Transactions
Transactions in capital stock were:
For the Year Ended
December 31
1997 1996
In shares:
Shares sold 93,946 108,114
Shares issued in rein-
vestment of dividends 95,256 92,912
Total shares issued 189,202 201,026
Shares redeemed (266,908) (257,397)
Net decrease (77,706) (56,371)
In dollars:
Shares sold $ 2,328,468 $ 2,072,038
Shares issued in rein-
vestment of dividends 2,432,163 1,861,005
Total shares issued 4,760,631 3,933,043
Shares redeemed (6,170,219) (4,999,877)
Net decrease $(1,409,588) $(1,066,834)
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, 1997, 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, 1997, by cor-
respondence 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, 1997,
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 16, 1998
(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
Senior 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, Assistant Secretary 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
1775 Eye Street, NW
Washington, DC 20006
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, 1998, this report must also
be accompanied by the Fund's most recent calendar quarter statistical
update.
Vista Fund Distributors, Inc., is unaffiliated with The Chase Manhattan
Bank.
GFW-2-1297
The Growth Fund of Washington, Inc.
1101 Vermont Avenue, NW
Washington, DC 20005
Bulk Rate
U.S. Postage
PAID
Rockville, MD
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