SEMIANNUAL
REPORT
February 29, 1996
INVESCO
GROWTH
FUND,
INC.
A Smart Choice
For Seeking
Steady Capital Growth
INVESCO FUNDS
<PAGE>
Economic Overview March 1996
1995 will long stand out as a banner year for U.S. investors. The S&P 500
achieved a total return of 37.44% for the 12 months ended 12/31/95; only the
fourth time in fifteen years the broad market returned over 25%. Fixed-income
markets followed suit, with the Lehman Government/Corporate Bond Index gaining
19.24%.(1)
These spectacular results were influenced by a number of positive economic
factors. Inflation was low at a mere 2.8%, unemployment was down, and growth in
Gross Domestic Product slowed to apparently sustainable levels. In addition, the
Federal Reserve Board appeared to take a pro-growth stand, easing rates by .50%
during the second half of 1995.
In 1996, however, a repeat performance appears unlikely. During January
and February, the stock and bond markets whipsawed in the wake of stalled
federal budget negotiations. For the first two months of 1996, the Dow Jones
Industrial Average advanced 7.60%. However, in response to political and
economic uncertainty, it had swung up and down more than 50 points 24 times by
the end of February, versus 29 times for all of 1995.(1)
Bond markets also reflected the general political and economic
uncertainty. The Lehman Corporate/Government Bond Index showed a negative 2.12%
return in February, despite a further interest-rate reduction of .25% on January
31.
It seems likely that, over the short-term, the securities markets will
continue to provide roller-coaster returns. However, while a budget settlement
in Washington remains uncertain, it is expected that the Federal Reserve Board
will continue to gradually ease short-term interest rates during the year. As a
result, we anticipate a slow growth trend for the economy, as well as the stock
and bond markets, during the remainder of 1996.
/s/ R. Dalton Sim
- --------------------
R. Dalton Sim
Chairman and President
INVESCO Trust Company
<PAGE>
Growth Fund
Growth Fund
Average Annualized Total Return
as of 2/29/96(2)
1 year 31.95%
-----------------------------------
5 years 13.01%
-----------------------------------
10 years 11.19%
-----------------------------------
INVESCO Growth Fund achieved a total return of 13.71% for the six-month
period ended 2/29/96,(2) below the 15.26% returned by the S&P 500 broad market
index for the same period. However, the fund significantly outperformed its
peers as measured by the Lipper Growth Fund Index, which had a total return of
9.27% for the six months measured.(1)
The following line graph illustrates the growth of the S&P 500 compared to
the value of a $10,000 investment in INVESCO Growth Fund, plus reinvested
dividends and capital gain distributions, for the ten years ended 2/29/96.(2)
The chart and other total return figures cited reflect the fund's operating
expenses. However, the index does not have expenses, which would, of course,
have lowered its performance.
Graph: Growth Fund
Total Return Performance (2)
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 Lipper Growth Fund Indexes, assuming in each case
reinvestment of all dividends and capital gain distributions, for the ten
year period ended 2/29/96.
Strategic Overview
In recent months, growth funds in general have underperformed the S&P 500,
largely due to the effect of unusually strong performance from cyclical issues
on the broad market. However, as mentioned above, INVESCO Growth Fund has
exceeded the average for growth funds over the six months measured.(2)
The fund's strong relative performance can be attributed to a recent focus
on growth-oriented, larger-capitalization stocks. While some are not classic
"growth" companies, names such as Sears Roebuck & Co and Boeing Co do offer the
potential for above-market returns. Others, such as PepsiCo Inc and Coca-Cola
Co, serve the fund by providing large-cap, classic growth opportunities.
In choosing equities for the fund, we attempt to identify companies whose
revenue prospects are not dependent on overall economic cycles. Moreover, if
their stocks are priced below their inherent value, if the companies have cut
costs or restructured, or if there is pent-up demand for goods and services,
they are likely candidates for investment.
<PAGE>
Graph: Fund Diversification by Value(3)
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 Net Cash & Short Term for the
periods ending 2/95, 8/95, and 2/96.
Retail. A restructuring that included shedding non-core subsidiaries, such
as Dean Witter Discover, Allstate Insurance and Caldwell Banker, has allowed
Sears to focus on making its fundamental retail business profitable. However,
the slow retail environment depressed the company's stock value up until
mid-1995, resulting in the type of large-cap, low-cost, growth-oriented stock
which Growth Fund seeks. And with recent retail upswings in response to pent-up
consumer demand, Sears returned more than 40% to the fund over the past six
months.
Air Transportation. Aging fleets worldwide, strict noise regulations, and
more intense scrutiny of safety records have increased pressure to retire fleets
and bring on new aircraft. This more constant level of demand means that
traditionally cyclical aircraft producers such as Boeing now provide strong
growth opportunities regardless of the economic cycle.
Corporate Outsourcing. As virtually every industry focuses on downsizing,
a trend has developed toward "outsourcing" projects as an alternative to
maintaining costly internal divisions. During periods of economic slowing we
expect that this trend will strengthen, responding to greater cost-cutting and
increasing need for these services. Companies such as Computer Associates
International and General Motors Class E (formerly EDS) have capitalized on this
demand, providing strong returns for the fund in recent months.
Sector Analysis
In addition to locating growth opportunities in industries with changing
fundamentals, we have capitalized on the explosive growth occurring in various
sectors. Drug companies such as Pharmacia and Upjohn Inc have met the fund's
criteria and provided superior returns, both from their fundamental strengths
and renewed momentum within the Health Care sector. Similarly, Sterling Software
provided exceptional opportunity in Technology, as did BankAmerica Corp and
Wells Fargo in Finance.
Looking Forward
In the face of a projected economic slowing, large capitalization stocks
can often provide a substantial base for withstanding potential market
downturns. We continue to focus our selection on long-established, large
companies with unique opportunities for growth despite the market cycle. And as
we move through 1996, we believe that this strategy will leave us
well-positioned to withstand the uncertain market environment.
<PAGE>
Fund Management
INVESCO Growth Fund is managed by INVESCO Trust Company vice president
Douglas N. Pratt. Mr. Pratt 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. Prior to joining INVESCO, he was an equity analyst
with Loomis, Sayles & Company. In addition to managing Growth Fund, Mr. Pratt is
manager of INVESCO Strategic Financial Services Portfolio.
(1) The S&P 500 and Dow Jones Industrial Average are unmanaged indexes
considered representative of the performance of the broad U.S. stock market. The
Lehman Government/Corporate Index is an unmanaged index illustrating the broad
fixed-income market. The Lipper Growth Fund Index is an unmanaged index
representative of Growth Funds measured by Lipper Analytical Services, Inc.
(2) Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Investment return and principal value
will fluctuate so that, when redeemed, an investor's shares may be worth more or
less than when purchased. Of course, past performance is not a guarantee of
future results.
(3) Holdings are subject to change.
<PAGE>
INVESCO Fund Codes
These two-digit codes appear after your account number on Investment
Summaries and confirmations. You may also use them to request information about
specific funds on PAL(R), your Personal Account Line.
Money Market Funds
44 U.S. Government Money Fund
25 Cash Reserves
40 Tax-Free Money Fund
Tax-Exempt Funds
36 Tax-Free Intermediate Bond
35 Tax-Free Long-Term Bond
Income Funds
33 Short-Term Bond
32 U.S. Government Securities
47 Intermediate Government Bond
30 Select Income
31 High Yield
Multiple Asset Funds
71 Balanced
70 Multi-Asset Allocation
48 Total Return
Equity-Income Funds
15 Industrial Income
58 Utilities
Growth Funds
10 Growth
20 Dynamics
74 Small Company
60 Emerging Growth
46 Value Equity
Sector Funds
50 Energy
59 Environmental Services
57 Financial Services
51 Gold
52 Health Sciences
53 Leisure
55 Technology
38 Worldwide Capital Goods
39 Worldwide Communications
International Funds
49 International Growth
56 European
37 European Small Company
34 Latin American Growth
41 Asian Growth
54 Pacific Basin
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 Growth Fund, Inc.
Ten Largest Common Stock Holdings
February 29, 1996
Description Value
- ------------------------------------------------------------------------
Columbia/HCA Healthcare $20,531,250
Boeing Co 20,281,250
International Business Machines 20,233,125
Sterling Software 19,987,500
Tektronix Inc 19,965,000
BankAmerica Corp 19,950,000
Digital Equipment 19,800,000
Wells Fargo 19,730,000
Intel Corp 19,114,063
Kroger Co 18,562,500
Composition of holdings is subject to change.
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Investment Securities
February 29, 1996
UNAUDITED
Shares or
Principal
Description Amount Value
-------------
COMMON STOCKS 99.44%
AEROSPACE & DEFENSE 6.31%
Boeing Co 250,000 $20,281,250
Lockheed Martin 200,000 15,250,000
-------------
35,531,250
-------------
BANKING 8.97%
BankAmerica Corp 280,000 19,950,000
First Chicago NBD 250,000 10,843,750
Wells Fargo 80,000 19,730,000
-------------
50,523,750
-------------
CHEMICALS 2.37%
Potash Corp Saskatchewan 180,000 13,365,000
-------------
COMPUTER RELATED 15.12%
Computer Associates International 200,000 13,750,000
Digital Equipment* 275,000 19,800,000
General Motors Class E 200,000 11,425,000
International Business Machines 165,000 20,233,125
Sterling Software* 300,000 19,987,500
-------------
85,195,625
-------------
ELECTRONICS 6.64%
Nokia Corp Sponsored ADR
Representing Ord A Shrs 500,000 17,437,500
Tektronix Inc 440,000 19,965,000
-------------
37,402,500
-------------
FOOD PRODUCTS & BEVERAGES 10.67%
Anheuser-Busch Cos 220,000 14,822,500
Coca-Cola Co 220,000 17,765,000
Heinz (H J) Co 399,800 13,593,200
PepsiCo Inc 220,000 13,915,000
-------------
60,095,700
-------------
HEALTH CARE RELATED 3.64%
Columbia/HCA Healthcare 375,000 20,531,250
-------------
<PAGE>
MEDICAL PRODUCTS 3.04%
Baxter International 375,000 17,156,250
-------------
MEDICAL RELATED - DRUGS 2.93%
American Home Products 125,000 12,312,500
Pharmacia & Upjohn Inc* 100,500 4,208,438
-------------
16,520,938
-------------
OFFICE EQUIPMENT 2.31%
Xerox Corp 100,000 13,025,000
-------------
OIL & GAS RELATED 6.41%
Amoco Corp 265,000 18,417,500
Anadarko Petroleum 325,000 17,712,500
-------------
36,130,000
-------------
RETAIL 19.83%
Gap Inc 300,000 16,087,500
Kroger Co* 500,000 18,562,500
McDonald's Corp 300,000 15,000,000
Price/Costco Inc* 300,000 5,175,000
Rite Aid 500,000 15,750,000
Safeway Inc* 525,000 15,684,375
Sears Roebuck & Co 315,000 14,293,125
Starbucks Corp* 400,000 7,050,000
Walgreen Co 125,000 4,125,000
-------------
111,727,500
-------------
SEMICONDUCTOR EQUIPMENT 3.39%
Intel Corp 325,000 19,114,062
-------------
TEXTILES & APPAREL MANUFACTURERS 2.25%
NIKE Inc Class B 195,000 12,650,625
-------------
TRANSPORTATION 3.24%
AMR Corp* 55,000 4,826,250
Continental Airlines Class B* 100,000 4,800,000
KLM Royal Dutch Airlines New
York Registered Shrs 125,000 4,156,250
UAL Corp* 25,000 4,465,625
-------------
18,248,125
-------------
UTILITIES 2.32%
U S WEST Communications Group 400,000 13,100,000
-------------
TOTAL COMMON STOCKS
(Cost $501,577,536) $560,317,575
-------------
<PAGE>
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 0.56%
FINANCE RELATED 0.56%
Associates Corp of North America
5.430%, 3/1/1996
(Cost $3,175,000) 3,175,000 3,175,000
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $504,752,536)
(Cost for Income Tax Purpose
$505,638,907) $563,492,575
=============
* Security is non-income producing.
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Assets and Liabilities
February 29, 1996
UNAUDITED
ASSETS
Investment Securities at Value
(Cost $504,752,536) $563,492,575
Cash 13,772
Receivables:
Fund Shares Sold 209,433
Dividends and Interest 919,529
Prepaid Expenses and Other Assets 65,001
-------------
TOTAL ASSETS 564,700,310
-------------
LIABILITIES
Payables:
Distributions to Shareholders 77,677
Investment Securities Purchased 3,733,587
Fund Shares Repurchased 1,646,770
Accrued Distribution Expenses 1,225,621
Accrued Expenses and Other Payables 36,671
-------------
TOTAL LIABILITIES 6,720,326
-------------
Net Assets at Value $557,979,984
=============
NET ASSETS
Paid-in Capital* $461,234,897
Accumulated Undistributed Net Investment
Income 29,733
Accumulated Undistributed Net Realized Gain
on Investment Securities and Foreign Currency
Transactions 37,975,315
Net Appreciation of Investment Securities and
Foreign Currency Transactions 58,740,039
-------------
Net Assets at Value $557,979,984
=============
Net Asset Value, Offering and Redemption
Price per Share $5.16
======
* The Fund has 200 million authorized shares of common stock, par value of $0.01
per share, of which 108,052,770 were outstanding at February 29, 1996.
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Operations
Six Months Ended February 29, 1996
UNAUDITED
INVESTMENT INCOME
INCOME
Dividends $3,661,039
Interest 948,446
Foreign Taxes Withheld (11,640)
-------------
TOTAL INCOME 4,597,845
-------------
EXPENSES
Investment Advisory Fees 1,549,695
Distribution Expenses 662,544
Transfer Agent Fees 328,064
Administrative Fees 44,886
Custodian Fees and Expenses 46,565
Directors' Fees and Expenses 16,940
Professional Fees and Expenses 20,867
Registration Fees and Expenses 28,308
Reports to Shareholders 51,182
Other Expenses 22,781
-------------
TOTAL EXPENSES 2,771,832
Fees and Expenses Paid Indirectly (24,629)
-------------
NET EXPENSES 2,747,203
-------------
NET INVESTMENT INCOME 1,850,642
-------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 84,713,327
Change in Net Depreciation of Investment
Securities and Foreign Currency Transactions (17,743,425)
-------------
NET GAIN ON INVESTMENT SECURITIES 66,969,902
-------------
Net Increase in Net Assets from Operations $68,820,544
=============
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Statement of Changes in Net Assets
Six Months Year
Ended Ended
February 29 August 31
------------- -------------
1996 1995
UNAUDITED
OPERATIONS
Net Investment Income $1,850,642 $5,036,824
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 84,713,327 38,774,461
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (17,743,425) 10,770,469
------------- -------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 68,820,544 54,581,754
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,793,032) (5,058,251)
In Excess of Net Investment Income 0 (27,877)
Net Realized Gain on
Investment Securities (79,379,786) (44,862,069)
------------- -------------
TOTAL DISTRIBUTIONS (81,172,818) (49,948,197)
------------- -------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 122,246,660 116,103,132
Reinvestment of Distributions 72,251,903 44,471,512
------------- -------------
194,498,563 160,574,644
Amounts Paid for Repurchases
of Shares (125,451,608) (152,333,754)
------------- -------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 69,046,955 8,240,890
------------- -------------
Total Increase in Net Assets 56,694,681 12,874,447
NET ASSETS
Beginning of Period 501,285,303 488,410,856
------------- -------------
End of Period (Including
Accumulated Undistributed
(Overdistributed) Net Investment
Income of $29,733 and
($27,877), respectively) $557,979,984 $501,285,303
============= =============
FUND SHARE TRANSACTIONS
Shares Sold 22,842,570 23,465,171
Shares Issued from Reinvestment
of Distributions 14,566,753 9,743,145
------------- -------------
37,409,323 33,208,316
Shares Repurchased (23,348,211) (30,729,512)
------------- -------------
Net Increase in Fund Shares 14,061,112 2,478,804
============= =============
See Notes to Financial Statements
<PAGE>
INVESCO Growth Fund, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Growth Fund,
Inc. (the "Fund"), was incorporated in Maryland. The investment objective of the
Fund is to seek long- term capital growth. The Fund 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. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION - Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales
price in the market where such securities are primarily traded. If last
sales 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 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 dividend if such
information is obtained subsequent to 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.
<PAGE>
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 or currency exchange restrictions. Net realized and
unrealized gain or loss from investments includes fluctuations from
currency exchange rates and fluctuations in market value.
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.
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 expired capital loss carryforwards.
E. EXPENSES - Under an agreement between the Fund and the
Fund's Custodian, agreed upon Custodian Fees and Expenses
are reduced by credits granted by the Custodian from any
temporarily uninvested cash. Similarly, Other Expenses,
which include Pricing Expenses, are reduced by credits
earned by the Fund from security brokerage transactions
under certain broker/serices arrangements with third
parties. Such credits are included in Fees and Expenses
Paid Indirectly in the Statement of Operations.
For the six months ended February 29, 1996, Fees and Expenses Paid
Indirectly consisted of $23,715 included in Custodian Fees and Expenses
and $914 included in Other Expenses.
<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% on 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 29, 1996, the Fund paid the Distributor $584,280 for
reimbursement of expenses incurred.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
February 29, 1996, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were $666,197,808 and $653,471,575, respectively. There were no
purchases or sales of U.S. Government securities.
NOTE 4 - APPRECIATION AND DEPRECIATION. At February 29, 1996, the gross
appreciation of securities in which there was an excess of value over tax cost
amounted to $69,293,493 and the gross depreciation of securities in which there
was an excess of tax cost over value amounted to $11,439,825, resulting in net
appreciation of $57,853,668.
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.
<PAGE>
Pension expenses for the six months ended February 29, 1996, included in
Directors' Fees and Expenses in the Statement of Operations were $2,830.
Unfunded accrued pension costs of $12,721 and pension liability of $25,980 are
included in Prepaid Expenses and Accrued Expenses, respectively, in the
Statement of Assets and Liabilities.
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 5% of the Net Assets at Value of the Fund. The Fund
agrees to pay annual fees and interest on the unpaid principal balance based on
prevailing market rates as defined in the agreement. For the six months ended
February 29, 1996, there were no such borrowings.
<PAGE>
INVESCO Growth Fund, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
February 29 Year Ended August 31
------------ ---------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value - Beginning of Period $5.33 $5.34 $5.28 $4.72 $5.26 $4.37
------------ ---------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.05 0.03 0.04 0.05 0.07
Net Gains on Securities
(Both Realized and Unrealized) 0.67 0.49 0.11 1.00 0.05 1.28
------------ ---------------------------------------------------------
Total from Investment Operations 0.69 0.54 0.14 1.04 0.10 1.35
------------ ---------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.02 0.05 0.03 0.04 0.05 0.08
Distributions from Capital Gains 0.84 0.50 0.05 0.44 0.59 0.38
------------ ---------------------------------------------------------
Total Distributions 0.86 0.55 0.08 0.48 0.64 0.46
------------ ---------------------------------------------------------
Net Asset Value - End of Period $5.16 $5.33 $ 5.34 $5.28 $4.72 $5.26
============ =========================================================
TOTAL RETURN 13.71%* 12.05% 2.52% 22.17% 2.04% 31.16%
RATIOS
Net Assets - End of Period ($000 Omitted) $557,980 $501,285 $488,411 $483,957 $408,218 $428,564
Ratio of Expenses to Average Net Assets 0.52%*@ 1.06% 1.03% 1.04% 1.04% 1.00%
Ratio of Net Investment Income to
Average Net Assets 0.35%* 1.07% 0.47% 0.72% 0.93% 1.52%
Portfolio Turnover Rate 130%* 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.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
</FN>
</TABLE>
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
Latin American Growth 34 IVSLX LatinAmGr
European Small Company 37 IVECX EuroSmCo
European 56 FEURX Europ
Pacific Basin 54 FPBSX PcBas
International Growth 49 FSIGX IntlGr
Asian Growth 41 * *
- --------------------------------------------------------------------------------
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.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, pleas visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center
7800 East Union Avenue, Lobby Level
This information must be preceded or accompanied by an effective prospectus.
