ANNUAL REPORT
August 31, 1995
INVESCO
GROWTH
FUND,
INC.
A Smart Choice
For Seeking
Steady Capital Growth
INVESCO FUNDS
<PAGE>
Market Overview September 1995
The U.S. economy may be close to achieving the "soft landing" analysts have
hoped for.
Fearing the long-term, corrosive effects of inflation, the Federal Reserve
Board actively sought to slow the U.S. economy in 1994. Over a period of 12
months, they doubled short-term interest rates.
The plan may have worked. After impressive annualized growth rates of
6.3%, 3.3%, 3.8%, 3.4%, and 5.1% in consecutive quarters, GDP advanced just 2.7%
during the first three months of 1995, and was estimated at 1.3% in the second
quarter. Now that they've reined in the galloping expansion, the Fed will act to
keep it at a sustainable trot. In July, they cut short-term interest rates by
0.25%, and further cuts may be made if additional stimulus is required. Given
the advances in the U.S. equities markets in the first half of 1995, we're
likely to see a period when the market "digests" its gains -- as technology
stocks did in mid-July, for instance. However, we do not anticipate a
significant setback in prices over the fourth quarter.
Growth Fund
Growth Fund had a total return of 12.05% for the fiscal year ended
8/31/95, compared to a total return of 21.35% for the S&P 500 index in the same
period. While results for the full year were not equal to the index, the fund
picked up momentum in the last half of the fiscal year. From 1/1/95 through
8/31/95, the fund climbed 18.92%, compared to 24.45% for the S&P 500. And over
the months of June, July and August, the fund was up a cumulative 8.00%, while
the index was up only 6.06%. (Of course, past performance is no guarantee of
future results.)*
Growth Fund
Avergage Annualize Total Return
as of 8/31/95*
1 year 12.05%
-------------------------------
5 years 13.44%
-------------------------------
10 years 12.28%
-------------------------------
The underperformance of the fund compared to the index over the last 12
months can be attributed mainly to the fund's lower weighting in technology and
financial stocks. These two industry sectors led the market advances for much of
the period. Fund performance also was influenced by real-estate and capital
goods investments that failed to produce results. A large stake in Telefonos de
Mexico SA, a Mexican telephone utilities firm, was sold after the Mexican
currency crisis in December.
Going into the domestic market rally beginning in December, the fund was
constrained by a relatively high level of cash and cash equivalents. The cash
position has since been reduced to under 10% as of 8/31/95.
Growth Fund
Total Return Performance*
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 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended 8/31/95.
Just as technology stocks outperformed the broad market, our technology
holdings outperformed all other industry groups in the fund. We saw significant
increases in value in IBM (one of our larger positions), Intel Corp., Texas
Instruments, cisco Systems, and Ceridian Corp. As of 8/31/95, we had increased
the fund's technology position to 28%, up from 18% as of 2/28/95.
<PAGE>
We are in the process of restructuring the portfolio to focus on stocks of
well-managed, large-capitalization companies expected to show consistently
higher earnings growth rates than the market in the next five years. Our method
combines "top-down" analysis of economic factors with "bottom-up" scrutiny of
individual stocks most likely to benefit, given the overview. In choosing
stocks, a company's earnings outlook is the prime criterion.
As long as the economy continues on its present stable course, we expect
to decrease our exposure to capital goods and basic materials. At the same time,
we anticipate maintaining our commitment to technology, health care, consumer
staples, and pharmaceuticals.
Graph:Portfolio Diversification by Value
This bar graph reflects the allocation of the Growth Fund's portfolio by
value of net assets in Basic Materials, Capital Goods & Construction,
Consumer Cyclical, Consumer Staples, Energy, Finance, Technology,
Transportation & Services, Utilities, and Cash & Equivalents for the
periods ending 8/94, 2/95, and 8/95.
Among recent stock selections are Coca-Cola Co. and McDonald's Corp., both
of which we believe are in a position to capitalize on expanding overseas
markets. We think they are good buys now due to exaggerated fears of adverse
currency exchange rates.
We also recently purchased shares of Safeway Inc., a supermarket chain
that we believe is well run and, like all of our growth favorites, has a strong
and sustainable competitive position. Another pick is Boeing Co., which could
get an earnings boost from its new, cleaner and quieter 777 jet airplanes. We
like Microsoft Corp. for its exposure to budding markets and commitment to
reinvesting its strong cash flow into the business.
Though we have already seen strong upward movement in the equity markets
this year, we believe continuing strength in the U.S. economy will translate
into sustained stock price advances. Continuing the momentum established in the
first half of 1995, we believe we have taken the steps to put the fund in a
strong position to benefit from positive market trends in the second half.
Fund Management
The fund is co-managed by R. Dalton Sim, chairman and president, and vice
president Douglas N. Pratt, both of INVESCO Trust Company. Dalton has managed
Growth Fund since 1988 and has been chief investment officer for the INVESCO
funds for seven years. He has 28 years of experience with prominent financial
and investment companies: Putnam Companies, Lazard Freres, Aetna Life &
Casualty, Anchor Corporation, and Price Waterhouse. Dalton earned his MBA from
Stanford University and a B. Comm. from the University of Toronto. He is a CA,
Canadian Institute of Chartered Accountants.
Doug is a 10-year veteran of the investment business and a Chartered
Financial Analyst. He earned an MBA from Columbia University and an AB from
Brown University. He was an equity analyst with Loomis, Sayles & Company from
1987 to 1992, when he joined INVESCO. In addition to co-managing Growth Fund,
Doug is the manager of INVESCO Strategic Financial Services Portfolio.
*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 line graph on the previous page illustrates the value of a $10,000
investment in INVESCO Growth Fund, plus reinvested dividends and capital gain
distributions, for the 10-year period ended 8/31/95. (Of course, past
performance is no guarantee of future results.)
The chart and other total return figures cited reflect the fund's
operating expenses, but the index does not have expenses, which would, of
course, have lowered its performance.
<PAGE>
INVESCO Growth Fund, Inc.
Ten Largest Common Stock Holdings
August 31, 1995
Description Value
- -------------------------------------------------
Wells Fargo $13,978,125
cisco Systems 13,125,000
International Business Machines 12,921,875
Travelers Group 12,480,000
Amgen Inc 12,447,500
Micron Technology 12,300,000
Intel Corp 12,275,000
Viacom Inc Class B 12,156,250
Union Pacific 11,790,000
Coca-Cola Co 11,243,750
Composition of holdings is subject to change.
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Investment Securities
August 31, 1995
Shares or
Principal
Description Amount Value
- ---------------------------------------------------------------------------
COMMON STOCKS 96.63%
AEROSPACE & DEFENSE 3.31%
Boeing Co 115,000 $7,331,250
Lockheed Martin 150,000 9,131,250
------------
16,462,500
------------
BANKING 2.81%
Wells Fargo 75,000 13,978,125
------------
BIOTECHNOLOGY 2.50%
Amgen Inc* 260,000 12,447,500
------------
BROADCASTING 3.54%
Tele-Communications International
Class A* 350,000 5,468,750
Viacom Inc Class B* 250,000 12,156,250
------------
17,625,000
------------
BUILDING & CONSTRUCTION
RELATED 0.43%
Webb (Del) Corp 114,500 2,132,562
------------
CLEANING PRODUCTS 2.05%
Colgate-Palmolive Co 150,000 10,200,000
------------
COMPUTER RELATED 16.45%
Autodesk Inc 200,000 9,225,000
Ceridian Corp* 150,000 6,562,500
cisco Systems* 200,000 13,125,000
Computer Associates International 85,000 5,907,500
Hewlett-Packard Co 140,000 11,200,000
International Business Machines 125,000 12,921,875
Microsoft Corp* 100,000 9,250,000
Oracle Systems* 200,000 8,025,000
Sterling Software* 125,000 5,578,125
------------
81,795,000
------------
COSMETICS & TOILETRIES 0.97%
Dial Corp 200,000 4,800,000
------------
DIVERSIFIED COMPANIES 1.78%
Tyco International Ltd 150,000 8,868,750
------------
FOOD PRODUCTS & BEVERAGES 3.45%
Coca-Cola Co 175,000 11,243,750
Seagram Co Ltd 160,000 5,920,000
------------
17,163,750
------------
<PAGE>
HEALTH CARE RELATED 3.35%
Caremark International 270,000 5,602,500
Columbia/HCA Healthcare 235,000 11,045,000
------------
16,647,500
------------
HOTELS 1.07%
Marriott International 150,000 5,325,000
------------
INSURANCE 3.61%
Mid Ocean Ltd 160,000 5,480,000
Travelers Group 260,000 12,480,000
------------
17,960,00
------------
MACHINERY 4.06%
Ingersoll-Rand Co 250,000 9,468,750
Varity Corp* 236,100 10,742,550
------------
20,211,300
------------
MEDICAL RELATED 1.89%
Guidant Corp 325,000 8,206,250
St Jude Medical* 20,000 1,192,500
------------
9,398,750
------------
MEDICAL RELATED -- DRUGS 4.26%
Merck & Co 125,000 6,234,375
Mylan Laboratories 375,000 8,578,125
Upjohn Co 150,000 6,356,250
------------
21,168,750
------------
OFFICE EQUIPMENT 2.18%
Xerox Corp 90,000 10,867,500
------------
OIL & GAS RELATED 11.71%
Apache Corp 300,000 8,737,500
Noble Affiliates 200,000 5,525,000
Petroleum Geo-Services A/S
Sponsored ADR* 335,000 8,584,375
Phillips Petroleum 300,000 9,862,500
Schlumberger Ltd 100,000 6,450,000
Tidewater Inc 200,000 4,950,000
TOTAL SA Sponsored ADR
Representing Ord B Shrs 204,666 6,088,814
Unocal Corp 191,000 5,562,875
Vastar Resources 80,000 2,500,000
------------
58,261,064
------------
PAPER & PAPER PRODUCTS 1.14%
Union Camp 100,000 5,687,500
------------
PUBLISHING 0.64%
Time Warner 75,000 $ 3,159,375
------------
REAL ESTATE RELATED 0.33%
Crescent Real Estate Equities 53,500 1,651,813
------------
<PAGE>
RECREATION PRODUCTS
& SERVICES 2.69%
Circus Circus Enterprises* 150,000 4,912,500
Gaylord Entertainment Class A 305,235 8,470,271
------------
13,382,771
------------
RETAIL 6.39%
McDonald's Corp 275,000 10,037,500
Safeway Inc* 250,000 9,843,750
Sears Roebuck & Co 215,000 6,960,625
Wal-Mart Stores 200,000 4,925,000
------------
31,766,875
------------
SEMICONDUCTOR EQUIPMENT 8.18%
Intel Corp 200,000 12,275,000
Micron Technology 160,000 12,300,000
Motorola Inc 75,000 5,606,250
Texas Instruments 140,000 10,482,500
------------
40,663,750
------------
TELECOMMUNICATIONS 1.06%
DSC Communications* 100,000 5,250,000
------------
TOBACCO 2.25%
Philip Morris 150,000 11,193,750
------------
TRANSPORTATION 4.53%
Federal Express* 150,000 10,762,500
Union Pacific 180,000 11,790,000
------------
22,552,500
------------
TOTAL COMMON STOCKS
(Cost $404,137,921) 480,621,385
------------
SHORT-TERM INVESTMENTS --
COMMERCIAL PAPER 3.37%
FINANCE RELATED 3.37%
Associates Corp of North America
5.840%, 9/1/1995
(Cost $16,740,000) $16,740,000 16,740,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $420,877,921#) $ 497,361,385
=============
*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
August 31, 1995
ASSETS
Investment Securities at Value
(Cost $420,877,921) $497,361,385
Cash 20,844
Receivables:
Investment Securities Sold 3,607,993
Fund Shares Sold 1,541,247
Dividends and Interest 665,947
Prepaid Expenses and Other Assets 64,183
------------
TOTAL ASSETS 503,261,599
------------
LIABILITIES
Payables:
Distributions to Shareholders 169,590
Investment Securities Purchased 287,500
Fund Shares Repurchased 338,196
Accrued Distribution Expenses 1,147,357
Accrued Expenses and Other Payables 33,653
------------
TOTAL LIABILITIES 1,976,296
------------
Net Assets at Value $501,285,303
============
NET ASSETS
Paid-in Capital* $392,187,942
Accumulated Overdistributed
Net Investment Income (27,877)
Accumulated Undistributed Net Realized
Gain on Investment Securities 32,641,774
Net Appreciation of Investment Securities 76,483,464
------------
Net Assets at Value $501,285,303
============
Net Asset Value, Offering and Redemption
Price per Share $5.33
=====
* The Fund has 200 million authorized shares of common stock, par value of
$0.01 per share, of which 93,991,658 were outstanding at August 31, 1995.
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Operations
Year Ended August 31, 1995
INVESTMENT INCOME
INCOME
Dividends $6,839,962
Interest 3,223,036
Foreign Taxes Withheld (34,221)
------------
TOTAL INCOME 10,028,777
------------
EXPENSES
Investment Advisory Fees 2,757,404
Distribution Expenses 1,173,887
Transfer Agent Fees 681,911
Administrative Fees 80,433
Custodian Fees and Expenses 31,725
Directors' Fees and Expenses 38,127
Professional Fees and Expenses 49,998
Registration Fees and Expenses 56,517
Reports to Shareholders 107,077
Other Expenses 14,874
------------
TOTAL EXPENSES 4,991,953
------------
NET INVESTMENT INCOME 5,036,824
------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities 38,774,461
Change in Net Appreciation
of Investment Securities 10,770,469
------------
NET GAIN ON INVESTMENT SECURITIES 49,544,930
------------
Net Increase in Net Assets from Operations $54,581,754
===========
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Changes in Net Assets
Year Ended August 31
-----------------------------------
1995 1994
OPERATIONS
Net Investment Income $ 5,036,824 $ 2,326,577
Net Realized Gain on
Investment Securities 38,774,461 43,030,605
Change in Net Appreciation
(Depreciation) of Investment
Securities 10,770,469 (33,651,104)
-----------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 54,581,754 11,706,078
-----------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income (5,058,251) (2,299,634)
In Excess of Net Investment
Income (27,877) 0
Net Realized Gain on
Investment Securities (44,862,069) (4,543,653)
-----------------------------------
TOTAL DISTRIBUTIONS (49,948,197) (6,843,287)
-----------------------------------
FUND SHARE
TRANSACTIONS
Proceeds from Sales of Shares 116,103,132 177,341,865
Reinvestment of Distributions 44,471,512 6,075,869
-----------------------------------
160,574,644 183,417,734
Amounts Paid for Repurchases
of Shares (152,333,754) (183,826,443)
-----------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 8,240,890 (408,709)
-----------------------------------
Total Increase in Net Assets 12,874,447 4,454,082
NET ASSETS
Beginning of Period 488,410,856 483,956,774
-----------------------------------
End of Period (Including
Accumulated Undistributed
(Overdistributed) Net Investment
Income of ($27,877) and $21,427,
respectively) $501,285,303 $ 488,410,856
==================================
FUND SHARE
TRANSACTIONS
Shares Sold 23,465,171 33,033,950
Shares Issued from Reinvestment
of Distributions 9,743,145 1,107,074
-----------------------------------
33,208,316 34,141,024
Shares Repurchased (30,729,512) (34,227,070)
-----------------------------------
Net Increase (Decrease)
in Fund Shares 2,478,804 (86,046)
===================================
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Notes to Financial Statements
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Growth
Fund, Inc. (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.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
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 at the time of purchase, or at
market value if maturity is greater than 60 days.
B. 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. Certain dividends from foreign securities will be recorded as
soon as the Fund is informed of 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.
The Fund may have elements of risk due to concentrated investments in
foreign issuers located in a specific country. Such concentrations may
subject the Fund to additional risks resulting from future political or
economic conditions and/or possible impositions of adverse foreign
governmental laws on currency exchange restrictions.
C. FEDERAL AND STATE TAXES -- The Fund has complied and continues to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
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. Of the ordinary income
distributions declared for the year ended August 31, 1995, 100.00% qualified
for the dividends received deduction available to the Fund's corporate
shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
D. 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 foreign currency transactions, nontaxable dividends, net
operating losses, and expiring capital loss carryforwards. As of August 31,
1995, there were no such differences.
<PAGE>
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%
on 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 year ended
August 31, 1995, the Fund paid the Distributor $582,942 for reimbursement of
expenses incurred. NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For
the year ended August 31, 1995, the aggregate cost of purchases and proceeds
from sales of investment securities (excluding all U.S. Government securities
and short-term securities) were $462,942,405 and $464,104,166, respectively.
There were no purchases or sales of U.S. Government securities. NOTE 4 --
APPRECIATION AND DEPRECIATION. At August 31, 1995, the gross appreciation of
securities in which there was an excess of value over tax cost amounted to
$79,338,337 and the gross depreciation of securities in which there was an
excess of tax cost over value amounted to $2,854,873 resulting in net
appreciation of $76,483,464. 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 year ended August 31, 1995,
included in Directors' Fees and Expenses in the Statement of Operations were
$10,429. Unfunded accrued pension costs of $16,735 and pension liability of
$27,164 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>
Year Ended August 31
---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
Net Asset Value-- Beginning of Period $ 5.34 $5.28 $4.72 $5.26 $4.37
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.05 0.03 0.04 0.05 0.07
Net Gains on Securities
(Both Realized and Unrealized) 0.49 0.11 1.00 0.05 1.28
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.54 0.14 1.04 0.10 1.35
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.05 0.03 0.04 0.05 0.08
Distributions from Capital Gains 0.50 0.05 0.44 0.59 0.38
---------- ---------- ---------- ---------- ----------
Total Distributions 0.55 0.08 0.48 0.64 0.46
---------- ---------- ---------- ---------- ----------
Net Asset Value-- End of Period $5.33 $5.34 $ 5.28 $4.72 $5.26
========== ========== ========== ========== ==========
TOTAL RETURN 12.05% 2.52% 22.17% 2.04% 31.16%
RATIOS
Net Assets-- End of Period ($000 Omitted) $501,285 $488,411 $483,957 $408,218 $428,564
Ratio of Expenses to Average Net Assets 1.06% 1.03% 1.04% 1.04% 1.00%
Ratio of Net Investment Income to
Average Net Assets 1.07% 0.47% 0.72% 0.93% 1.52%
Portfolio Turnover Rate 111% 63% 77% 77% 69%
<FN>
+ Distributions in excess of net investment income for the year ended August
31, 1995, aggregated less than $0.01 on a per share basis.
</FN>
</TABLE>
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of INVESCO Growth Fund, Inc.(the
"Fund") at August 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. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1995 by correspondence with the custodian and the application of alternative
auditing procedures for unsettled security transactions, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
October 2, 1995
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
Latin American Growth 34 IVSLX LatinAmGr
European Small Company 37 * *
European 56 FEURX Europ
Pacific Basin 54 FPBSX PcBas
International Growth 49 FSIGX IntlGr
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Technology 55 FTCHX Tech
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Growth, Value
Emerging Growth 60 FIEGX Emgrth
Value Equity 46 FSEQX ValEq
Small Company 74 IDSCX DivSmCo
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
- --------------------------------------------------------------------------------
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
Balanced/Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Total Return 48 FSFLX TotRtn
- --------------------------------------------------------------------------------
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
Intermediate Government Bond 47 FIGBX IntGov
Short-Term Bond 33 INIBX ShTrBd
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Long-Term Bond 35 FTIFX TxFre
Tax-Free Intermediate Bond 36 * *
- --------------------------------------------------------------------------------
Money Market
Tax-Free Money Fund 40 FFRXX N/A
Cash Reserves 25 FDSXX N/A
U.S. Government Money Fund 44 FUGXX N/A
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
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(r), your 24-hour Personal Account
Line, call: 1-800-424-8085
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.
