SEMIANNUAL REPORT
February 28, 1995
INVESCO GROWTH FUND, INC.
A Smart Choice For Seeking Steady Growth
INVESCO FUNDS
<PAGE>
Market Overview March 1995
Perversely, to the securities markets, strong economic growth can be viewed
as a negative, a harbinger of inflation. Some analysts are worried about the
figures for late 1994: Gross domestic product (GDP) rose 4.6% for the fourth
quarter. That was the sixth straight quarter in which the GDP growth rate was
2.7% or better, and current indications are that growth will be as much as 3% in
the current quarter. Corporate earnings growth continued strong throughout the
fourth quarter for industries as diverse as airlines, entertainment, and
packaging. And 1994 showed the biggest leap in corporate profits for at least
two decades.
We are finally seeing signs that economic growth is slowing, though. For
instance, hourly wages and hours worked remained flat or dropped through
February. These factors work together in relieving pressure for increases in
wages and benefits -- key contributors to rising inflation. In fact,
employer-paid health care costs actually decreased about 1% last year.
Another encouraging sign, relative to inflation, is industrial production. The
output at U.S. factories and mines grew at just 0.4% in January, half the rate
of each of the two preceding months. New factory orders slowed even more.
Finally, consumer confidence -- and spending plans -- are also lessening.
There are still legitimate concerns regarding inflation. The most widely used
index, the CPI, rose 0.3% in January. Moreover, unemployment surprisingly
dropped to 5.4% in February. As a consequence of these and other signs, the next
few months may bring additional modest increases in the Fed Funds rate.
By increasing short-term rates, the Federal Reserve is attempting a "soft
landing" -- that is, to moderate the current economic expansion before inflation
heats up. Over the past twelve months, the Fed has raised short-term rates by a
total of 3.00%. Particularly during the first half of 1994, the markets reacted
poorly to these increases -- the Lehman Government/Corporate Bond Index had a
total return of negative 4.36% over the six months ended 6/30/94. Bond prices
made up some of the lost ground during the latter half of 1994; still, for all
of 1994, the Lehman Index dropped 3.53%. Stocks took the initial increases to
interest rates poorly, and the S&P 500 lost 3.35% over the first six months of
1994. But they rebounded, gaining 4.87% over the following six months.
While inflation is not likely to approach the eight percent-plus levels seen
in the early 1980s, it will probably be higher than the 2.5% to 3% range seen
during recent years. The INVESCO economic forecast calls for steadily increasing
inflation. We anticipate that consumer prices will rise as much as 4.0%
year-over-year by the fourth quarter of 1995; that compares to an increase of
just 2.7% in 1993 and 2.8% in 1994.
In 1994, the markets' performance reflected concern that the Fed would
overshoot its goal, bringing growth lower than the 2.5% target -- or worse,
induce a recession. Now, however, investors appear to be gaining confidence that
interest rates are stabilizing. Investors should keep in mind that any inflation
surprises, or a spate of disappointing corporate earnings reports, could trigger
corrections.
One final factor to bear in mind is the decline of the U.S. dollar against
major world currencies. It works in favor of U.S. companies exporting goods and
services -- but it also encourages the Federal Reserve Board to increase
short-term interest rates.
Growth Fund
The line graph on the next page illustrates the value of a $10,000 investment
in INVESCO Growth Fund, plus reinvested dividends and capital gain
distributions, for the ten-year period ended 2/28/95. (Of course, past
performance is not a guarantee of future returns.)*
The chart and other total return figures cited reflect the fund's operating
expenses, but the indices do not have expenses, which would, of course, have
lowered their performance.
For the six months ended 2/28/95, INVESCO Growth Fund had a total return of
negative 3.44%. During the same period, the Russell 2000 had a total return of
positive 0.55%, while the S&P 500 achieved a total return of positive 3.96%. (Of
course, past performance is not a guarantee of future results.)*
Growth Fund
Average Annualized Total Return*
12/31/94 2/28/95
1 Year -8.80% -8.12%
5 Years 9.22% 10.61%
10 Years 11.61% 10.78%
Stock market moves in the past few months have been rotational -- one sector
swiftly succeeding another as market leader and laggard. During the winter, the
former included consumer staples, utilities, energy, and technology. Due to
concern over rising inflation, the superior earnings growth enjoyed by
industrial and consumer cyclical stocks tended to be overlooked, and the market
instead rewarded the more stable earnings records of consumer staples firms.
During this period, Growth Fund was overweighted in capital goods and consumer
cyclicals, and had taken cash and equivalents up to 19% of net assets. Hence,
the fund did not participate in the early winter rally enjoyed by the S&P 500 --
although in February, when consumer cyclicals took the lead (and utilities with
consumer staples brought up the rear), we paced the broad market.
Telefonos de MexicoSA de CV Sponsored ADR was one of our larger holdings at
8/31/94, due to its strong earnings growth. The Mexican currency crisis punished
the bolsa across the board, regardless of strong fundamentals, and we closed
this position at a loss.
Recent takeover activity has made consumer staples more attractive as a group.
Over the longer-term, however, these industries have lost much of their pricing
power, and earnings growth may well decelerate. Therefore this category has not
been over-weighted relative to the market. Over the past few weeks, Growth Fund
has selectively increased its focus on food and drug companies. Identifying
firms which we expect to have earnings estimates revised upward, we took new
positions in Philip Morris, Merck & Co, and Mylan Laboratories.
Likewise, we have modestly increased our attention to basic materials --
purchasing Union Camp (paper & paper products) and Barrick Gold (Canadian
exploration & mining), both companies with good prospects for seeing growth
accelerate. But again, longer-term prospects for this industry appear weaker,
due to the lateness of the current economic cycle.
Instead, we have sought to position the portfolio to benefit from strong
earnings growth in U.S. manufacturing sectors. We have paid particular attention
to companies which may enjoy surging export sales due to economic recoveries
underway in Europe and the Far East.
As a group, the underlying 1995 earnings estimates for fund holdings are well
above the market average (18.9% versus 12.5% for the S&P 500). And our stocks
are selling at a discount of 16.2% to the S&P 500 multiple. Going forward, we
believe that this discount plus above average earnings growth could result in
superior performance (although, of course, future performance cannot be
guaranteed).
Technology stocks continue as the largest portfolio focus. During the last few
months, we purchased Xerox Corp, cisco Systems, LEGENT Corp, and Silicon
Graphics. Due to seasonal factors, we expect to take profits in some stocks
while prices remain strong. But this sector retains its long-term potential and
interest.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Growth Fund to the value of a $10,000 investment
in the S&P 500 and Russell 2000 Indexes, assuming in each case
reinvestment of all dividends and capital gain distributions, for the ten
year period ended 2/28/95.
We trimmed consumer cyclicals during the period -- again, we are at a late
stage in the current economic cycle, and we anticipate that earnings growth here
is at or near the peak. Additional diversification beyond retail firms was
provided by new investments in Marriott International, and Time Warner.
Meanwhile, we sold Cifra SA de CV, Price/Costco Inc, Singer Co NV, and Ford
Motor.
Temporarily, we have cut back on manufacturing and automobile-related
industries. Over the last six months, for instance, we sold Louisiana-Pacific
Corp, AlliedSignal Inc, Eaton Corp, Federal-Mogul Corp, and Cummins Engine. The
capital goods and construction industries remain important to our strategy,
though, as we anticipate that selected companies will enjoy continued strong
earnings growth. The fund's holdings in Del Webb Corp were increased, and
positions opened in Tyco International Ltd and Deere & Co.
Graph:Growth Fund Diversification by Value of Net Assets This graph reflects
the allocation of the Growth Fund's portfolio by value of net assets in
basic materials, capital goods and construction, consumer cyclical,
consumer staples, diversified, energy, finance, technology, transportation
and services, utilities and cash and equivalent securities as of 2/28/94,
8/31/94, 11/30/95 and 2/28/95
Two sectors in particular suffered from the period's higher interest rate
trend -- finance and utilities. Accordingly, holdings in these industries
received a serious overhaul. We sold Chase Manhattan and Federal National
Mortgage Association. Most utilities positions were closed during the past six
months.
INVESCO Growth Fund has been managed by R. Dalton Sim since 1988. Mr. Sim
has been chief investment officer for the INVESCO funds for seven years; he
is chairman and president of INVESCO Trust Company. He has 28 years of
experience with prominent financial and investment companies: Putnam
Companies, Lazard Freres, Aetna Life & Casualty, Anchor Corporation, and
Price Waterhouse. Mr. Sim earned his MBA from Stanford University, and a B.
Comm. from the University of Toronto. Additionally, he is a CA, Canadian
Institute of Chartered Accountant.
*Total return assumes reinvestment of dividends and capital gain
distributions. Past performance is not a guarantee of future results. Investment
return and principal value will vary so that, when redeemed, an investor's
shares may be worth more or less than when purchased. The S&P 500 is an
unmanaged index of common stocks considered representative of the broad market.
The Russell 2000 is an unmanaged index of small-to-medium-capitalization common
stocks. The Lehman Government/Corporate Bond Index is an unmanaged index
considered representative of the broad bond market.
<PAGE>
INVESCO Growth Fund, Inc.
Ten Largest Common Stock Holdings*
February 28, 1995
Description Value
Viacom Inc Class B $13,425,000
Xerox Corp 11,087,500
Hewlett-Packard Co 10,925,000
Crescent Real Estate Equities 10,700,000
Philip Morris 10,631,250
Sears Roebuck 10,588,750
Texas Instruments 10,237,500
Travelers Inc 10,107,500
Columbia/HCA Healthcare 9,723,125
Colgate-Palmolive Co 9,675,000
*The composition of holdings is subject to change.
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Investment Securities
February 28, 1995
UNAUDITED
Shares or
Principal
Description Amount Value
COMMON STOCKS 81.54%
AUTOMOBILE RELATED 1.04%
Chrysler Corp 110,000 $4,785,000
-----------
BANKING 2.51%
Citicorp 140,000 6,300,000
First Interstate Bancorp 65,000 5,289,375
-----------
11,589,375
-----------
BROADCASTING 4.57%
Gaylord Entertainment Class A 290,700 7,630,875
Viacom Inc Class B* 300,000 13,425,000
-----------
21,055,875
-----------
CABLE TELEVISION 1.11%
Tele-Communications Inc Class A* 225,000 5,118,750
-----------
CLEANING PRODUCTS 2.10%
Colgate-Palmolive Co 150,000 9,675,000
-----------
COMPUTER RELATED 10.65%
Cisco Systems* 200,000 6,750,000
Compaq Computer* 113,700 3,922,650
Computer Associates International 150,000 8,550,000
Hewlett-Packard Co 95,000 10,925,000
International Business Machines 125,000 9,406,250
LEGENT Corp* 150,000 4,350,000
Silicon Graphics* 150,000 5,193,750
-----------
49,097,650
-----------
COSMETICS & TOILETRIES 1.08%
Dial Corp 200,000 5,000,000
-----------
DIVERSIFIED COMPANIES 4.01%
Philip Morris 175,000 $10,631,250
Tyco International Ltd 150,000 7,818,750
-----------
18,450,000
-----------
ELECTRONICS 4.62%
Intel Corp 70,000 5,582,500
Sensormatic Electronics 193,700 5,496,237
Texas Instruments 130,000 10,237,500
-----------
21,316,237
-----------
EXPLORATION & MINING 0.94%
Barrick Gold 200,000 4,350,000
-----------
FINANCE RELATED 2.19%
Travelers Inc 260,000 10,107,500
-----------
FOOD PRODUCTS & BEVERAGES 1.07%
Seagram Co 160,000 4,920,000
-----------
HEALTH CARE RELATED 5.10%
Columbia/HCA Healthcare 235,000 9,723,125
Humana Inc* 400,000 9,500,000
U S HealthCare 100,000 4,300,000
-----------
23,523,125
-----------
HOTELS 0.44%
Marriott International 65,100 2,018,100
-----------
INSURANCE 1.10%
Mid Ocean Ltd* 200,000 5,075,000
-----------
MACHINERY 5.40%
Cincinnati Milacron 200,000 4,200,000
Deere & Co 65,000 4,980,625
Ingersoll-Rand Co 200,000 6,375,000
Varity Corp* 255,600 9,329,400
-----------
24,885,025
-----------
MEDICAL RELATED 4.20%
Allergan Inc 175,000 5,053,125
Amgen Inc* 140,000 9,660,000
Baxter International 150,000 4,668,750
-----------
19,381,875
-----------
MEDICAL RELATED - DRUGS 2.84%
Merck & Co 125,000 5,296,875
Mylan Laboratories 250,000 7,812,500
-----------
13,109,375
-----------
OFFICE EQUIPMENT 2.41%
Xerox Corp 100,000 11,087,500
-----------
OIL & GAS RELATED 8.67%
Apache Corp 300,000 7,500,000
Coastal Corp 160,000 4,580,000
Phillips Petroleum 200,000 6,675,000
TOTAL SA Sponsored ADR
Representing Ord B Shrs 204,666 5,679,482
Unocal Corp 200,000 5,675,000
Vastar Resources 160,000 4,140,000
Yacimientos Petroliferos Fiscades
SA Sponsored ADR Representing
Class D Shrs 300,000 $5,700,000
-----------
39,949,482
-----------
PAPER & PAPER PRODUCTS 0.75%
Union Camp 66,700 3,435,050
-----------
PUBLISHING 1.26%
Time Warner 150,000 5,793,750
-----------
REAL ESTATE RELATED 4.14%
Crescent Real Estate Equities 400,000 10,700,000
Webb (Del) Corp 425,000 8,393,750
-----------
19,093,750
-----------
RECREATION SERVICES 1.13%
Carnival Corp Class A 220,000 5,225,000
-----------
RETAIL 5.07%
AnnTaylor Stores* 100,000 3,300,000
Sears Roebuck 215,000 10,588,750
Wal-Mart Stores 400,000 9,500,000
-----------
23,388,750
-----------
TELECOMMUNICATIONS 1.63%
LDDS Communications* 320,701 7,516,430
-----------
TOYS & HOBBIES 0.58%
Mattel Inc 118,750 2,657,031
-----------
TRANSPORTATION 0.93%
Southern Pacific Rail* 240,000 4,290,000
-----------
TOTAL COMMON STOCKS
(Cost $339,467,724) 375,894,630
-----------
SHORT-TERM INVESTMENTS 18.46%
Commercial Paper 18.30%
FINANCE RELATED 18.30%
American Express Credit
5.800%, 3/6/1995 $18,805,000 18,805,000
Chevron Oil Finance
5.830%, 3/1/1995 $12,533,000 12,533,000
General Electric Capital Services
5.850%, 3/3/1995 $11,877,000 11,877,000
Household Finance
5.850%, 3/1/1995 $6,127,000 6,127,000
5.800%, 3/1/1995 $13,880,000 13,880,000
Sears Roebuck Acceptance
5.900%, 3/8/1995 $21,150,000 21,150,000
-----------
TOTAL COMMERCIAL PAPER
(Cost $84,372,000) 84,372,000
-----------
Repurchase Agreements 0.16%
Repurchase Agreement with
State Street Bank & Trust Co
dated 2/28/1995 due 3/1/1995
at 5.500%, repurchased at
$750,115 (Collateralized by
US Treasury Notes due 10/31/1996
at 6.500%, value $783,294)
(Cost $750,000) $750,000 $750,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $85,122,000) 85,122,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $424,589,724#) $461,016,630
============
*Security is non-income producing.
#Also represents cost for income tax purposes.
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Assets and Liabilities
February 28, 1995
UNAUDITED
ASSETS
Investment Securities at Value
(Cost $424,589,724) $461,016,630
Cash 21,319
Receivables:
Investment Securities Sold 7,842,050
Fund Shares Sold 2,112,584
Dividends and Interest 675,535
Prepaid Expenses and Other Assets 58,914
------------
TOTAL ASSETS 471,727,032
------------
LIABILITIES
Payables:
Distributions to Shareholders 124,510
Investment Securities Purchased 15,923,798
Fund Shares Repurchased 91,308
Accrued Distribution Expenses 825,910
Accrued Expenses and Other Payables 29,389
------------
TOTAL LIABILITIES 16,994,915
------------
Net Assets at Value $454,732,117
============
NET ASSETS
Paid-in Capital* $414,289,163
Accumulated Undistributed
Net Investment Income 58,054
Accumulated Undistributed Net Realized Gain
on Investment Securities 3,957,994
Net Appreciation of Investment Securities 36,426,906
------------
Net Assets at Value $454,732,117
============
Net Asset Value, Offering and Redemption
Price per Share $4.62
=====
*The Fund has 200 million authorized shares of common stock, par value of $0.01
per share, of which 98,488,472 shares were outstanding at February 28, 1995.
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Operations
Six-Months Ended February 28, 1995
UNAUDITED
INVESTMENT INCOME
INCOME
Dividends $3,208,181
Interest 1,522,681
-----------
TOTAL INCOME 4,730,862
-----------
EXPENSES
Investment Advisory Fees 1,342,524
Distribution Expenses 570,859
Transfer Agent Fees 352,899
Administrative Fees 39,252
Custodian Fees and Expenses 17,588
Directors' Fees and Expenses 20,677
Professional Fees and Expenses 24,822
Registration Fees and Expenses 29,682
Reports to Shareholders 38,425
Other Expenses 6,974
-----------
TOTAL EXPENSES 2,443,702
-----------
NET INVESTMENT INCOME 2,287,160
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities 10,090,689
Change in Net Depreciation of
Investment Securities (29,286,089)
-----------
NET LOSS ON INVESTMENT SECURITIES (19,195,400)
-----------
Net Decrease in Net Assets from Operations $(16,908,240)
===========
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Changes in Net Assets
Six-Months
Ended Year Ended
February 28 August 31
1995 1994
UNAUDITED
OPERATIONS
Net Investment Income $2,287,160 $2,326,577
Net Realized Gain on
Investment Securities 10,090,689 43,030,605
Change in Net Depreciation
of Investment Securities (29,286,089) (33,651,104)
------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM OPERATIONS (16,908,240) 11,706,078
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (2,250,533) (2,299,634)
Net Realized Gain on
Investment Securities (44,862,077) (4,543,653)
------------- -------------
TOTAL DISTRIBUTIONS (47,112,610) (6,843,287)
------------- -------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 42,005,898 177,341,865
Reinvestment of Distributions 41,965,780 6,075,869
------------- -------------
83,971,678 183,417,734
Amounts Paid for Repurchases
of Shares (53,629,567) (183,826,443)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 30,342,111 (408,709)
------------- -------------
Total Increase (Decrease) in
Net Assets (33,678,739) 4,454,082
NET ASSETS
Beginning of Period 488,410,856 483,956,774
------------- -------------
End of Period (Including
Accumulated Undistributed Net
Investment Income of $58,054
and $21,427, respectively) $454,732,117 $488,410,856
============= =============
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold 8,540,516 33,033,950
Shares Issued from Reinvestment
of Distributions 9,255,946 1,107,074
------------- -------------
17,796,462 34,141,024
Shares Repurchased (10,820,844) (34,227,070)
------------- -------------
Net Increase (Decrease) in
Fund Shares 6,975,618 (86,046)
============= =============
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES. The Fund, a Maryland corporation, is
registered under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company. The following is a summary
of significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. A. SECURITY VALUATION - Equity
securities traded on national securities exchanges or in the over-the-counter
market are valued at the last sale price in the market where such securities are
primarily traded. If last sale prices are not available, securities are valued
at the highest closing bid price obtained from one or more dealers making a
market for such securities or by a pricing service approved by the Fund's board
of directors. If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith by
the Fund's board of directors. Short-term securities are stated at amortized
cost (which approximates market value) if maturity is 60 days or less, or at
market value if maturity is greater than 60 days. B. REPURCHASE AGREEMENTS -
Repurchase agreements held by the Fund are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is recorded
on the ex dividend date. Interest income, which may be comprised of stated
coupon rate, market discount and original issue discount is recorded on the
accrual basis. Cost is determined on the specific identification basis. D.
FEDERAL AND STATE TAXES - The Fund has complied with the provisions of the
Internal Revenue Code applicable to regulated investment companies and,
accordingly, has made or intends to make sufficent distributions of net
investment income and net realized capital gains, if any, to relieve it from all
federal and state income taxes and federal excise taxes. Dividends paid by the
Fund from net investment income and distributions of net realized short-term
capital gains are, for federal income tax purposes, taxable as ordinary income
to shareholders. E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and
distributions to shareholders are recorded by the Fund on the ex
dividend/distribution date. The Fund distributes net realized capital gains, if
any, to its shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments for nontaxable dividends, net operating losses, expiring capital loss
carry forwards and deferral of wash sales. NOTE 2 - INVESTMENT ADVISORY AND
OTHER AGREEMENTS. INVESCO Funds Group, Inc. ("IFG") serves as the Fund's
investment adviser. As compensation for its services to the Fund, IFG receives
an investment advisory fee which is accrued daily at the applicable rate and
paid monthly. The fee is based on the annual rate of 0.60% on the first $350
million of average net assets; reduced to 0.55% of the next $350 million of
average net assets; and 0.50% of average net assets in excess of $700 million.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of the
Fund are made by ITC. Fees for such sub-advisory services are paid by IFG. In
accordance with an Administrative Agreement, the Fund pays IFG an annual fee of
$10,000, plus an additional amount computed at an annual rate of 0.015% of
average net assets to provide administrative, accounting and clerical services.
The fee is accrued daily and paid monthly. IFG receives a transfer agent fee at
an annual rate of $14.00 per shareholder account, or per participant in an
omnibus account. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. The fee is paid monthly at one-twelfth of the
annual fee and is based upon the actual number of accounts in existence during
each month. A plan of distribution pursuant to Rule 12b-1 of the Act provides
for reimbursement of marketing and advertising expenditures to IFG (the
"Distributor") to a maximum of 0.25% of average annual net assets. Amounts
accrued by the Fund are available to reimburse the Distributor for actual
expenditures incurred within a rolling twelve-month period. For the six-months
ended February 28, 1995, the Fund paid the Distributor $301,361 for
reimbursement of expenses incurred. NOTE 3 - PURCHASES AND SALES OF INVESTMENT
SECURITIES. For the six-months ended February 28, 1995, the aggregate cost of
purchases and proceeds from sales of investment securities (excluding all U.S.
Government securities and short-term securities) were $178,572,632 and
$215,720,818, respectively. There were no purchases or sales of U.S. Government
securities. NOTE 4 - APPRECIATION AND DEPRECIATION. At February 28, 1995, the
gross appreciation of securities in which there was an excess of value over tax
cost amounted to $44,094,127, and the gross depreciation of securities in which
there was an excess of tax cost over value amounted to $7,667,221 resulting in
net appreciation of $36,426,906. NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain
of the Fund's officers and directors are also officers and directors of IFG or
ITC. The Fund has adopted an unfunded noncontributory defined benefit pension
plan covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 25% of the retainer fee at
the time of retirement. Pension expenses for the six-months ended February 28,
1995, included in Directors' Fees and Expenses in the Statement of Operations
were $476. Prepaid pension costs of $23,846 and accrued pension liability of
$24,320 are included in prepaid expenses and accrued expenses, respectively, in
the Statement of Assets and Liabilities.
<PAGE>
INVESCO Growth Fund, Inc.
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six-Months
Ended
February 28 Year Ended August 31
1995 1994 1993 1992 1991 1990
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $5.34 $5.28 $4.72 $5.26 $4.37 $4.54
------ ----------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.03 0.04 0.05 0.07 0.10
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.22) 0.11 1.00 0.05 1.28 (0.14)
------ ----------------------------------------------
Total from Investment Operations (0.20) 0.14 1.04 0.10 1.35 (0.04)
------ ----------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.02 0.03 0.04 0.05 0.08 0.11
Distributions from Capital Gains 0.50 0.05 0.44 0.59 0.38 0.02
------ ----------------------------------------------
Total Distributions 0.52 0.08 0.48 0.64 0.46 0.13
------ ----------------------------------------------
Net Asset Value-- End of Period $4.62 $5.34 $5.28 $4.72 $5.26 $4.37
====== ==============================================
TOTAL RETURN (3.44%)* 2.52% 22.17% 2.04% 31.16% (1.01%)
RATIOS
Net Assets-- End of Period ($000 Omitted) $454,732 $488,411 $483,957 $408,218 $428,564 $339,927
Ratio of Expenses to Average Net Assets 0.53%* 1.03% 1.04% 1.04% 1.00% 0.78%
Ratio of Net Investment Income to
Average Net Assets 0.50%* 0.47% 0.72% 0.93% 1.52% 2.17%
Portfolio Turnover Rate 44%* 63% 77% 77% 69% 86%
</TABLE>
*These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
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INVESCO FUNDS
To receive general information and prospectuses on any of INVESCO's funds or
retirement plans, or to obtain current account or price information.
Call toll-free: 1-800-525-8085
To reach PAL, your 24-hour Personal Account
Line, call: 1-800-525-8085
Or write to:
INVESCO Funds Group, Inc., Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied by a current prospectus.
