ANNUAL REPORT
May 31, 1995
INVESCO
MONEY
MARKET
FUNDS,
INC.
Smart Choices
For Liquidity
And Safety
INVESCO FUNDS
<PAGE>
Investment Expertise From The Top Down
INVESCO Cash Reserves and U.S. Government Money Funds are managed by
Richard R. Hinderlie. He began his investment career in 1973, and has extensive
experience in fixed-income analysis and portfolio management. He earned his MBA
from Arizona State University and a BA in Economics from Pacific Lutheran
University.
Tax-Free Money Fund is managed by Ingeborg S. Cosby. She joined INVESCO's
fixed-income division in 1985. Previously, Ms. Cosby was a portfolio manager
assistant with First Affiliated Securities Inc. of Denver.
Market Overview
Unemployment is up. The yield curve is flat. The dollar, housing starts,
and consumer confidence are all down. Gross Domestic Product expanded by just
2.7% during the first quarter 1995. And inflation has jumped well above 3% on an
annualized basis.
Taken altogether, this could be good news. These signs may indicate that
economic growth is approaching a sustainable, moderate level.
Analysts know that a rapidly growing economy puts stress on credit
availability. To meet increasing demand, companies may borrow to expand capacity
with new equipment and facilities. They add workers at a brisk rate, and those
workers are able to command higher wages in a "seller's market." Demand thus
outraces supply when it comes to the key resources of credit and employees.
Ultimately, something has to give and that something is interest rates. They
rise, and eventually the increased cost of borrowing slows down the entire
cycle.
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 beginning in February 1994, they doubled short-term interest rates.
For five quarters running, the GDP had racked up impressive gains,
including a solid +5.1% for the last quarter of 1994. Then, reacting to the
relentless pressure of high short-term interest rates, growth contracted to a
more moderate 2.7% for the first three months of 1995.
To many market watchers, "moderate" is synonymous with "sustainable."
Now that they've reined in the galloping expansion, the Fed will act to
keep it going at a sustainable trot. Their strategy is likely to include at
least one cut in the Fed Funds rate in the next several months. (This is the
rate charged on overnight loans between member banks.)
In our opinion, interest rates will probably drop further in 1995. That
will ease inflationary pressure somewhat, as well as have a positive impact on
the bond market. Short-term rates could drop to 5.5% or less, compared to a 6%
Fed Funds rate as of late June. The benchmark 30-year Treasury bond is now
yielding around 6.6%; we may expect to see that gradually decrease. Bond prices,
of course, have enjoyed growing strength since the fourth quarter of 1994.
<PAGE>
Given the advances in equities during the first half of 1995, we're likely
to see a correction as the market "digests" its gains. We do not anticipate a
significant setback in prices over the third and fourth quarters, however. Some
industrial, construction, and consumer cyclical stocks have lagged the overall
market due to earlier fears about the economy; since the recent cut in interest
rates may herald an economic rebound, these stocks may well enjoy advances over
the next few months.
Interest Rate Outlook
Money market fund yields have improved significantly since February 1994 as
a result of the Federal Reserve's decision to increase short-term rates.
Interest rates have been steady since February 1995, but as the economy
slows, a moderate lowering looks more likely. As of mid-June, policy makers were
considering a rate cut to prevent the onset of a recession. Obviously, an
interest rate adjustment would have a parallel effect on money market interest
rates.
Cash Reserves Fund
INVESCO Cash Reserves Fund is managed to provide high daily income, but
still afford liquidity and protection of principal. As of the fiscal year ended
5/31/95, the fund had a seven-day current annualized yield of 5.36%, up from
3.52% a year ago.
The largest component of the fund was First Tier commercial paper, the
highest rated, short-term debt of major corporations -- the most marketable of
all forms of commercial paper. The fund also invests in government agency
obligations, which provide a high degree of credit safety. (The value of fund
shares is neither insured nor guaranteed by the U.S. government.)
As of 5/31/95, more than 83% of the fund was invested in the highest
quality commercial paper, compared with 89% a year ago. Most holdings mature
within 90 days, and are reinvested, making the level of return in Cash Reserves
more responsive than bond funds to changing interest rates.
The fund holdings had an average maturity of 22 days as of 5/31/95,
compared with 29 days a year ago. As a rule, money market managers tend to
decrease the maturity of their holdings when they expect interest rates to move
up. As of the fiscal year-end, the yield curve was flat, offering minimal
incentive for the fund manager to take on the extra risk of increased
maturities.
U.S. Government Money Fund
INVESCO U.S. Government Money Fund seeks current income with less risk by
investing exclusively in short-term debt or repurchase agreements issued by the
U.S. government or its agencies. The goal is to achieve a high level of current
income, consistent with liquidity and safety of capital. (The value of fund
shares is neither insured nor guaranteed by the U.S. government.)
As of 5/31/95, the fund had a seven-day current annualized yield of 5.29%,
up from 3.40% a year ago.
The fund typically invests in Treasury obligations, as well as securities
of government-sponsored agencies.
<PAGE>
Holdings are limited to debt maturing in 365 days or less, and usually are
held until maturity. Overall, the portfolio must maintain an average
dollar-weighted maturity of under 90 days. As of fiscal year ended 5/31/95,
average maturity was 16 days, down from 37 days a year ago. Due to a flat yield
curve as of mid-June, the manager maintains there is lower risk in maintaining
shorter maturities and less advantage in holding longer ones.
Tax-Free Money Fund
INVESCO Tax-Free Money Fund seeks a combination of safety, liquidity and
daily income by investing primarily in short-term municipal obligations exempt
from federal taxation.
As of fiscal year ended, 5/31/95, the fund had a seven-day current
annualized yield of 3.60%, up from 2.18% a year ago. The portfolio consisted of
71 holdings distributed among 28 states, 73.1% of which were rated A-1 or
better.
Looking forward, lack of qualified supply of new paper continues to be an
ongoing concern. While the outlook for interest rates in the short-term
municipal sector is flat to inverted for the balance of the year, the fund
should remain competitive, reflecting earlier purchases of attractive yields.
*Yields are calculated according to current SEC regulations. Past performance is
not a guarantee of future results. The value of fund shares is neither insured
nor guaranteed by the U.S. government. The funds will attempt to maintain a
stable net asset value of $1.00, but this cannot be guaranteed.
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Investment Securities
May 31, 1995
<TABLE>
<CAPTION>
Effective Interest Principal
Description Rate % Amount Value
<S> <C> <C> <C>
CASH RESERVES Fund
SHORT-TERM INVESTMENTS 100.00%
US Government Agency Obligations 17.47%
Federal Farm Credit Bank, 6/1/1995 6.10 $ 50,000,000 $ 50,000,000
Small Business Administration,
Guaranteed Loan Pool Certificates
1/25/2018~ 6.87 3,940,674 3,940,674
3/25/2018~ 6.87 3,690,680 3,690,680
Student Loan Marketing Association
11/24/1997~ 5.99 20,000,000 19,944,475
11/10/1998~ 6.01 1,000,000 1,000,000
1/13/1999~ 6.03 25,000,000 25,000,000
2/8/1999~ 6.03 12,750,000 12,750,000
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $116,325,829) 116,325,829
------------
Commercial Paper 82.53%
BANKING 4.61%
Morgan (J P) & Co, 6/7/1995 6.04 30,750,000 30,719,609
------------
CAPTIVE FINANCE 34.50%
Automobile Related 9.55%
Ford Motor Credit
6/14/1995 6.10 10,000,000 10,000,000
7/10/1995 6.07 22,000,000 22,000,000
General Motors Acceptance
6/12/1995 6.16 10,250,000 10,231,052
7/3/1995 6.11 18,000,000 17,904,320
7/3/1995 6.09 3,500,000 3,481,427
------------
63,616,799
------------
Diversified Companies 5.87%
BHP Finance (USA), 6/21/1995 6.06 10,650,000 10,614,796
General Electric Capital Services
6/9/1995 6.03 25,250,000 25,250,000
6/13/1995 6.05 3,250,000 3,250,000
------------
39,114,796
------------
Financial Services 3.45%
American Express Credit, 6/12/1995 6.15 23,000,000 23,000,000
------------
Insurance 4.31%
Prudential Funding, 6/16/1995 6.05 28,750,000 28,678,844
<PAGE>
------------
Leasing Companies 3.07%
USL Capital
6/16/1995 6.06 9,500,000 9,476,488
7/10/1995 6.06 11,000,000 10,929,334
------------
20,405,822
------------
Retail 6.00%
Penney (J C) Funding, 6/26/1995 6.08 10,000,000 9,958,680
Sears Roebuck Acceptance
6/8/1995 6.11 20,000,000 20,000,000
6/19/1995 6.12 10,000,000 10,000,000
------------
39,958,680
------------
Tobacco 2.25%
BAT Capital
6/15/1995 6.06 10,000,000 9,976,861
6/26/1995 6.05 5,000,000 4,979,375
------------
14,956,236
------------
TOTAL CAPTIVE FINANCE 229,731,177
------------
CONSUMER FINANCE 8.74%
Beneficial Corp
6/6/1995 6.04 15,000,000 15,000,000
6/29/1995 6.06 13,750,000 13,750,000
New Center Asset Trust
6/30/1995 6.61 14,650,000 14,575,061
7/24/1995 6.08 15,000,000 14,868,825
------------
58,193,886
------------
DIVERSIFIED FINANCE 2.69%
General Electric Capital
7/6/1995 6.62 2,000,000 1,987,653
7/12/1995 6.63 16,025,000 15,909,108
------------
17,896,761
------------
INVESTMENT BROKERS 9.20%
Goldman Sachs Group, 8/14/1995 6.09 30,000,000 29,634,317
Merrill Lynch & Co
6/28/1995 6.10 16,800,000 16,724,778
6/30/1995 6.15 15,000,000 14,927,500
------------
61,286,595
------------
LEASING COMPANIES 9.36%
Hertz Corp
6/13/1995 6.05 3,500,000 3,493,058
7/5/1995 6.12 10,000,000 9,943,522
7/7/1995 6.09 12,000,000 12,000,000
7/31/1995 6.10 6,000,000 6,000,000
<PAGE>
PHH Corp
6/23/1995 6.05 11,000,000 10,960,070
6/27/1995 6.07 20,000,000 19,914,055
------------
62,310,705
------------
MORTGAGE BANKING 4.64%
Weyerhaeuser Mortgage
6/5/1995 6.08 5,000,000 4,996,689
6/19/1995 6.06 17,000,000 16,949,425
6/23/1995 6.04 9,000,000 8,967,385
------------
30,913,499
------------
RETAIL 4.03%
Southland Corp
7/5/1995 6.17 10,000,000 9,943,144
7/18/1995 6.13 7,000,000 6,945,349
7/26/1995 6.18 10,000,000 9,908,181
------------
26,796,674
------------
UTILITIES 4.76%
Central & South West
6/2/1995 6.13 18,700,000 18,696,883
7/12/1995 6.10 13,100,000 13,010,931
------------
31,707,814
------------
TOTAL COMMERCIAL PAPER
(Cost $549,556,720) 549,556,720
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $665,882,549#) $ 665,882,549
============
TAX-FREE MONEY Fund
SHORT-TERM INVESTMENTS 100.00%
Municipal Notes 98.35%
ALABAMA 1.65%
Montgomery Indl Dev Brd, Alabama
(Gen Elec Proj), FR, Pollution Ctl &
Solid Waste Disp Rev Ref,
Series 1990, TECP, 7/6/1995 4.10 1,000,000 1,000,000
------------
ALASKA 4.25%
Alaska Indl Dev & Export Auth (Spendard
Bldrs Supply Proj), VRD Rev, Composite
Ref Issue,
Lot 1, 12/1/1996~ 4.15 895,000 895,000
Anchorage, Alaska, FR, Sr Lien Ref Elec
Rev, 1986 Series A, 6/1/1996 4.03 620,000 653,484
Anchorage, Alaska (Sisters of Providence
Proj), FR, Hosp Rev,
Series 1985, 10/1/2025~ 4.61 1,000,000 1,035,098
------------
2,583,582
------------
<PAGE>
ARIZONA 0.82%
Cochise Cnty Pollution Ctl, Arizona
(Arizona Elec Pwr Cooperative Proj),
VR, Solid Waste Disp
Rev, Series 1994A, 9/1/2024~ 4.41 500,000 500,000
------------
ARKANSAS 0.82%
Crossett, Arkansas (Georgia-Pacific Corp
Proj), AR,PCR Ref,
Series 1991, 10/1/1998~ 4.15 500,000 500,000
------------
CALIFORNIA 1.65%
California Higher Ed Ln Auth, AR,
Student Ln Rev Ref,
1987 Series B, 7/1/2002~ 3.93 1,000,000 1,000,000
------------
FLORIDA 6.56%
Jacksonville Elec Auth, Florida, FR,
St Johns River Pwr Park System Ref Rev,
Issue Two, Series One, 10/1/1995 4.75 1,000,000 1,023,166
Jacksonville Hlth Facils Auth, Florida
(Baptist Med Ctr Proj), FR, Hosp Rev,
Pre-Refunding, Series 1985, 6/1/1995 4.48 1,000,000 1,020,000
St Lucie Cnty, Florida (Savannah Hosp
Proj), FRD, IDR, Series 1985,
11/1/2015~ 3.80 950,000 950,000
West Orange Mem Hosp Tax Dist, Florida,
Rev, Series 1991A-2, TECP, 7/20/1995 4.10 1,000,000 1,000,000
------------
3,993,166
------------
GEORGIA 7.05%
DeKalb Cnty Hosp Auth, Georgia (DeKalb
Med Ctr Proj), VR, RAC,
Series 1993B, 9/1/2009~ 4.15 1,445,000 1,445,000
Macon-Bibb Cnty Hosp Auth, Georgia (Med
Ctr of Central Georgia), AR, RAC,
Series 1994, 4/1/2007~ 4.15 1,845,000 1,845,000
Private Colleges & Univs Auth, Georgia
(Emory Univ Proj), Edl Rev,
Series 1993B, TECP, 8/10/1995 4.00 1,000,000 1,000,000
------------
4,290,000
------------
ILLINOIS 10.01%
Chicago, Illinois, Gen Oblig Tender Notes,
Series 1994A-2, TECP, 7/19/1995 4.15 500,000 500,000
Chicago School Fin Auth, Illinios, Gen
Oblig School Assistance, Pre-Refunding,
Series 1986, 6/1/1995 4.26 2,165,000 2,208,300
Illinois Dev Fin Auth (6 West Hubbard
Street Proj), F/FR, IDR,
Series 1986, 12/1/2016~ 4.40 980,000 980,000
Illinois Dev Fin Auth (Kindlon Partners
Proj),Indl Proj Rev,
FR, Series 1994, 3/1/2009~ 4.20 1,400,000 1,400,000
VR, Series 1991, 5/1/2006~ 4.20 1,000,000 1,000,000
------------
6,088,300
------------
<PAGE>
INDIANA 4.93%
Daviess Cnty, Indiana (Perdue Farms/
Shenandoah Valley Farms Facil), V/FRD,
Econ Dev Rev, 1987 Issue, 9/1/2007~ 4.10 1,500,000 1,500,000
Gary, Indiana (US Steel Proj), FRD,
Environmental Impt Rev Ref, Series
1984, 7/15/2002~ 4.55 1,000,000 1,000,000
Newton Cnty, Indiana (Intec Group Proj),
AR, Econ Dev, Rev,
Series 1994, 9/1/2010~ 4.20 500,000 500,000
------------
3,000,000
------------
KANSAS 1.65%
Fairway, Kansas (Nichols (J C) Co Proj),
FRD, Indl Rev, Series 1984, 11/1/2014~ 4.35 500,000 500,000
Shawnee, Kansas (Hampton Woods Apts Proj),
AR, Multifamily Hsg Rev, Series 1985,
12/1/2009~ 4.20 500,000 500,000
------------
1,000,000
------------
KENTUCKY 0.85%
Kentucky State Ppty & Bldgs Commn (St
Library and Archives Bldg Proj 29),
FR, Ref Rev, Second Series, 12/1/1995 4.38 500,000 517,879
------------
LOUISIANA 2.68%
Iberville Parish, Louisana, FR, Sales
and Use Tax, Rev Ref, 9/1/1995 4.19 200,000 200,759
Jefferson Sales Tax Dist, Louisiana, AR,
Special Sales Tax Rev Ref,
Series 1991A, 12/1/1995 4.36 525,000 528,793
Plaquemines Port Harbor & Terminal Dist,
Louisiana (Chevron Pipe Line Proj),
AR, Port Facils Rev,
Series 1984, 9/1/2008~ 4.30 400,000 400,000
Plaquemines Port Harbor & Terminal Dist,
Louisiana (Intl Marine Terminals Proj),
ATS, Port Facils Rev Ref,
Series 1984B, 3/15/2006~ 4.46 500,000 500,000
------------
1,629,552
------------
MARYLAND 1.65%
Prince George's Cnty, Maryland (Cap Ctr
Facil), AR, Sports Arena Rev Ref,
Series 1992, 6/1/2012~ 4.10 1,000,000 1,000,000
------------
MICHIGAN 0.98%
Michigan Strategic Fund (United Fixtures
Proj), AR, Ltd Oblig Rev,
Series 1995, 5/1/2015~ 4.10 595,000 595,000
------------
<PAGE>
MINNESOTA 5.16%
Rochester, Minnesota (Mayo Foundation/
Mayo Med Ctr), ATS, Hlth Care Facils
Rev, TECP,
Series 1992A, 6/8/1995 3.85 1,300,000 1,300,000
Series 1992A, 7/25/1995 4.15 800,000 800,000
Southern Minnesota Muni Pwr Agency, AR,
Pwr Supply System Rev,
Series 1986C, 1/1/1996 4.26 1,000,000 1,035,779
------------
3,135,779
------------
MISSOURI 0.99%
Missouri Hlth & Edl Facils Auth (St
Anthony's Med Ctr), ACES, Hlth Facils
Rev, Series 1989A, 12/1/2019~ 3.65 600,000 600,000
------------
NEBRASKA 0.82%
Hamilton Cnty, Nebraska (Iams Co Proj),
VR, IDR Ref, Series 1990, 7/1/2005~ 4.21 500,000 500,000
------------
NEW JERSEY 3.12%
New Jersey Econ Dev Auth (Genlyte Camden
Cnty Proj), AR, IDR Ref,
Series 1990, 12/19/2009~ 4.40 1,900,000 1,900,000
------------
OKLAHOMA 3.29%
Oklahoma Inds Auth (St Anthony Physicians
Bldg Proj), VR, Med Practice Facil Rev,
Series 1986, 6/1/2016~ 4.31 2,000,000 2,000,000
------------
PENNSYLVANIA 2.30%
Bucks Cnty Indl Dev Auth, Pennsylvania
(SHV Real Estate Proj), VRD, IDR Ref,
1985 Series, 7/1/2015~ 4.10 900,000 900,000
Philadelphia, Pennsylvania (PNC Bank,
Natl Assn), TRANS, Series E, 6/15/1995 4.00 500,000 500,140
------------
1,400,140
------------
SOUTH CAROLINA 3.90%
Anderson Cnty, South Carolina (Belton
Inds Proj), AR, Indl Rev,
Series 1991A, 4/1/2004~ 4.36 875,000 875,000
York Cnty, South Carolina (North Carolina
Elec Membership Proj), F/FR, PCR,
Series 1984N-4, 9/15/2014~ 4.27 500,000 500,000
York Cnty, South Carolina (Saluda River
Elec Coop Proj), F/FR, PCR,
Series 1984E-1, 8/15/2014~ 4.59 1,000,000 1,000,000
------------
2,375,000
------------
<PAGE>
TENNESSEE 2.82%
Greenville Hlth & Edl Facils Brd,
Tennessee (Laughlin Memorial Hosp
Proj), VRD Rev, Series 1992,
10/1/2014~ 4.10 1,000,000 1,000,000
Morgan Cnty, Tennessee, FR, Gen Oblig,
Ref, 10/1/1995 4.01 710,000 716,137
------------
1,716,137
------------
TEXAS 22.09%
Colorado River Muni Wtr Dist, Texas (Wtr
Transmission Facils Proj), FR, Wtr
System Rev, Series 1991-A, 1/1/1996 4.38 500,000 511,560
Corpus Christi, Texas, FR, Gen Impt &
Ref, Series 1985-A, 11/1/1995 4.12 1,035,000 1,052,911
Crawford Indl Dev Corp, Texas (Franklin
Inds Proj), VR, IDR, Series 1987,
10/1/2012~ 4.35 1,300,000 1,300,000
Harris Cnty Indl Dev Corp, Texas (Exxon
Proj), ATS, PCR, Series 1987,
8/15/2027~ 4.20 100,000 100,000
Houston Indpt School Dist, Texas, FR,
Gen Oblig, Ref, Series A, 8/15/1995 3.99 1,290,000 1,290,117
Lower Colorado River Auth, Texas, FR,
Priority Rev, Series 1985, 1/1/1996 4.37 500,000 523,006
North Central Texas Hlth Facils Dev Brd
(Presbyterian Med Ctr), DATES, Hosp Rev,
Series C, 12/1/2015~ 4.25 2,000,000 2,000,000
Series D, 12/1/2015~ 4.25 400,000 400,000
North Texas Higher Ed Auth, AR, Student
Ln Rev, Series 1993A, 4/1/2020~ 3.70 1,000,000 1,000,000
Sam Rayburn Muni Pwr Agency, Texas, FR,
Pwr Supply System Rev Ref,
Series 1985, 9/1/1995 4.40 650,000 671,087
Tarrant Cnty, Texas, FR, Gen Oblig,
Series 1988, 7/15/1995 4.60 500,000 501,854
Tarrant Cnty Hlth Facils Dev Corp, Texas
(Harris Methodist Hlth System), FR,
Hlth System Rev, 9/1/1995 4.84 1,000,000 1,031,559
Texas, FR, Gen Oblig, TECP, 8/3/1995 4.15 1,000,000 1,000,000
Texas A&M Univ, Sub Lien, VR, Perm Univ
Fund Rev Ref, Series B, 7/1/2002~ 4.06 1,000,000 1,003,606
Texas Wtr Dev Brd, Gen Oblig Rev, FR,
6/1/1995 4.31 550,000 550,000
8/1/1995 4.45 500,000 500,480
------------
13,436,180
------------
<PAGE>
UTAH 2.63%
Intermountain Pwr Agency, Utah, FR, Pwr
Supply Rev Ref, 1985 Series H, 7/1/1995 4.10 900,000 902,125
Tremonton City, Box Elder Cnty, Utah
(La-Z-Boy Chair Proj), VRD, IDR,
Series 1990, 6/1/2000~ 4.40 700,000 700,000
------------
1,602,125
------------
VIRGINIA 0.82%
Chesterfield Cnty Indl Dev Auth, Virginia
(Philip Morris Proj), AR, PCR Ref,
Series 1992, 4/1/2009~ 4.15 500,000 500,000
------------
WEST VIRGINIA 2.06%
West Virginia School Bldg Auth, FR, Gen
Oblig, Cap Impt Rev, 7/1/1995 4.24 1,250,000 1,250,798
------------
WISCONSIN 1.65%
Janesville, Wisconsin, FR, Gen Oblig Prom
Notes, Series 1990, 2/1/1996 4.56 500,000 506,427
Janesville, Wisconsin (Freedom Plastics
Proj), AR, IDR, Series 1995, 11/1/2005~ 4.10 500,000 500,000
------------
1,006,427
------------
WYOMING 1.15%
Platte Cnty, Wyoming (Tri-State Gen and
Trans), DATES, PCR, 7/1/2014~ 4.15 700,000 700,000
------------
TOTAL MUNICIPAL NOTES
(Cost $59,820,065) 59,820,065
------------
Taxable Commercial Paper 1.65%
FINANCE RELATED 1.65%
Associates Corp of North America, 6/1/1995
(Cost $1,000,000) 6.13 1,000,000 1,000,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $60,820,065#) $ 60,820,065
============
U.S. GOVERNMENT MONEY Fund
SHORT-TERM INVESTMENTS 100.00%
US Government Agency Obligations 69.10%
Federal Farm Credit Bank
6/1/1995 6.11 21,620,000 21,620,000
Federal Home Loan Bank
7/6/1995 6.17 7,900,000 7,894,219
Federal Home Loan Mortgage
7/6/1995 6.25 5,000,000 5,011,583
Federal National Mortgage Association
6/12/1995 6.35 5,400,000 5,407,938
6/30/1995 6.35 1,775,000 1,773,584
Student Loan Marketing Association
1/13/1999~ 6.03 5,000,000 5,000,000
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $46,707,324) 46,707,324
------------
<PAGE>
Repurchase Agreements 30.90%
Repurchase Agreement with State Street
Bank & Trust Co. dated 5/31/1995 due
6/1/1995 at 6.080%, repurchased at
$20,888,527 (Collateralized by US
Treasury Notes due 11/15/1996 at
4.375%, value $21,315,922)
(Cost $20,885,000) 20,885,000 20,885,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $67,592,324#) $ 67,592,324
============
<FN>
The following abbreviations may be used in portfolio descriptions:
A/FR* - Adjustable/Fixed Rate
ACES* - Adjustable Convertible Extendible Securities
AR* - Adjustable Rate
ARD* - Adjustable Rate Demand
ATS* - Adjustable Tender Securities
BAN - Bond Anticipation Notes
DATES* - Daily Adjustable Tax-ExemptSecurities
F/FR* - Floating/Fixed Rate
FR* - Fixed Rate
FRD* - Floating Rate Demand
GAN - Grant Anticipation Notes
IDR - Industrial Development Revenue
MAVRIC* - Multi-Mode and Variable RateInvestment Certificate
PCR - Pollution Control Revenue
RAN - Revenue Anticipation Notes
RAC - Revenue Anticipation Certificates
TAN - Tax Anticipation Notes
TEAMS* - Tax-Exempt Adjustable Mode Securities
TECP - Tax-Exempt Commercial Paper
TRANS - Tax & Revenue Anticipation Notes
UPDATES* - Unit Priced Demand Tax-Exempt Securities
V/FRD* - Variable/Fixed Rate Demand
VR* - Variable Rate
VRD* - Variable Rate Demand
* Rate is subject to change. Rate shown reflects current rate.
~ All securities with a maturity date greater than one year have either a
variable rate, demand feature, optional or mandatory put resulting
in an effective maturity of one year or less. Rate shown reflects current
rate.
# Also represents cost for income tax purposes.
</FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Assets and Liabilities
May 31, 1995
U.S.
Cash Tax-Free Government
Reserves Money Money
Fund Fund Fund
------------- ------------ ------------
ASSETS
Investment Securities:
At Cost $ 665,882,549 $ 60,820,065 $ 46,707,324
============= ============ ============
At Value $ 665,882,549 $ 60,820,065 $ 46,707,324
Repurchase Agreements at Value~ 0 0 20,885,000
Cash 488,266 140,900 28,507
Receivables:
Investment Securities Sold 22,842 1,000,000 0
Fund Shares Sold 8,016,111 268,528 217,176
Interest 1,604,747 753,164 1,066,649
Prepaid Expenses and Other Assets 144,056 34,836 36,401
------------- ------------ ------------
TOTAL ASSETS 676,158,571 63,017,493 68,941,057
------------- ------------ ------------
LIABILITIES
Payables:
Distributions to Shareholders 36,723 5,385 6,040
Investment Securities Purchased 0 1,677,179 5,690,590
Fund Shares Repurchased 31,740,384 2,551,063 2,397,579
Accrued Expenses and Other Payables 40,691 4,232 3,860
------------- ------------ ------------
TOTAL LIABILITIES 31,817,798 4,237,859 8,098,069
------------- ------------ ------------
Net Assets at Value* $ 644,340,773 $ 58,779,634 $ 60,842,988
============= ============ ============
Shares Outstanding 644,340,773 58,779,634 60,842,988
Net Asset Value, Offering and
Redemption Price per Share $1.00 $1.00 $1.00
============= ============ ============
~ Also represents cost.
* The Fund has ten billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, five billion, one billion and one billion
have been allocated to Cash Reserves, Tax-Free Money and U.S. Government
Money Funds, respectively. Each Fund's paid-in capital was $644,340,773,
$58,779,634 and $60,842,988, respectively.
See Notes to Financial Statements
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Operations
Year Ended May 31, 1995
U.S.
Cash Tax-Free Government
Reserves Money Money
Fund Fund Fund
------------- ------------ ------------
INVESTMENT INCOME
INTEREST INCOME $ 38,326,072 $ 2,529,619 $ 3,591,201
------------- ------------ ------------
EXPENSES
Investment Advisory Fees 2,931,431 359,656 338,959
Transfer Agent Fees 2,333,326 203,616 273,251
Administrative Fees 116,614 20,789 20,169
Custodian Fees and Expenses 69,044 9,796 8,139
Directors' Fees and Expenses 52,847 11,288 10,909
Professional Fees and Expenses 41,648 24,828 14,665
Registration Fees and Expenses 252,309 56,331 50,896
Reports to Shareholders 198,807 19,779 21,085
Other Expenses 18,245 8,972 4,491
------------- ------------ ------------
TOTAL EXPENSES 6,014,271 715,055 742,564
Fees and Expenses Absorbed
by Investment Adviser (714,814) (175,773) (234,127)
------------- ------------ ------------
NET EXPENSES 5,299,457 539,282 508,437
------------- ------------ ------------
Net Investment Income and Net
Increase in Net Assets from
Operations $33,026,615 $ 1,990,337 $ 3,082,764
============= ============ ============
See Notes to Financial Statements
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Changes in Net Assets
Year Ended May 31
<TABLE>
<CAPTION>
Cash Reserves Tax-Free U.S. Government
Fund Money Fund Money Fund
1995 1994 1995 1994 1995 1994
--------------------------------- ----------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned
and Distributed to Shareholders $ 33,026,615 $ 14,518,353 $ 1,990,337 $ 1,265,380 $ 3,082,764 $ 1,379,904
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $ 2,785,571,750 $ 2,909,856,117 $ 178,317,759 $ 351,194,390 $260,527,998 $ 260,535,347
Reinvestment of Distributions 30,390,470 13,292,153 1,866,166 1,150,172 2,834,730 1,265,155
--------------------------------- ----------------------------- ----------------------------
2,815,962,220 2,923,148,270 180,183,925 352,344,562 263,362,728 261,800,502
Amounts Paid for Repurchases
of Shares (2,919,172,944) (2,666,528,436) (205,924,818) (331,322,424) (276,431,946) (222,407,292)
--------------------------------- ----------------------------- ----------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (103,210,724) 256,619,834 (25,740,893) 21,022,138 (13,069,218) 39,393,210
NET ASSETS
Beginning of Period 747,551,497 490,931,663 84,520,527 63,498,389 73,912,206 34,518,996
--------------------------------- ----------------------------- ----------------------------
End of Period $ 644,340,773 $ 747,551,497 $ 58,779,634 $ 84,520,527 $ 60,842,988 $ 73,912,206
================================= ============================= ============================
FUND SHARE TRANSACTIONS
Shares Sold 2,785,571,750 2,909,856,117 178,317,759 351,194,390 260,527,998 260,535,347
Shares Issued from Reinvestment of
Distributions 30,390,470 13,292,153 1,866,166 1,150,172 2,834,730 1,265,155
--------------------------------- ----------------------------- ----------------------------
2,815,962,220 2,923,148,270 180,183,925 352,344,562 263,362,728 261,800,502
Shares Repurchased (2,919,172,944) (2,666,528,436) (205,924,818) (331,322,424) (276,431,946) (222,407,292)
--------------------------------- ----------------------------- ----------------------------
Net Increase (Decrease) in
Fund Shares (103,210,724) 256,619,834 (25,740,893) 21,022,138 (13,069,218) 39,393,210
================================= ============================= ============================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Money Market Funds, Inc.
Notes to Financial Statements
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Money
Market Funds, Inc. (the "Fund"), a Maryland Corporation, consists of three
separate Funds: Cash Reserves Fund, Tax-Free Money Fund and U.S. Government
Money Fund. The Fund is registered under the Investment Company Act of 1940 (the
"Act") as a diversified, open-end management investment company. During 1993,
the Cash Reserves, Tax-Free Money and U.S. Government Money Funds' fiscal
year-ends were changed from January 31, April 30, and December 31, respectively,
to May 31.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
A. SECURITY VALUATION -- 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. If management believes
that such valuation does not reflect the securities' fair value, these
securities are valued at fair value as determined in good faith by the
Fund's board of directors.
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. Interest income is
recorded on the accrual basis. The Fund amortizes discounts and premiums
paid on purchases of securities to the earliest put or call date as
adjustments to interest income. Cost is determined on the specific
identification basis.
D. 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. Of the distributions paid by Tax-Free Money Fund for
the year ended May 31, 1995, 99.04% were exempt from federal income taxes.
E. DISTRIBUTIONS TO SHAREHOLDERS -- All of the Fund's net investment income
is distributed to shareholders by dividends declared daily and paid
monthly. Reinvestment of income dividends is effected at the month-end net
asset value.
F. EXPENSES -- Each of the Funds bears expenses incurred specifically on its
behalf and, in addition, each Fund bears a portion of general expenses,
based on the relative net assets of each Fund.
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 0.50% on the first $300 million of average net assets; reduced to 0.40%
on the next $200 million of average net assets; and 0.30% of average net assets
in excess of $500 million.
<PAGE>
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of each
Fund are made by ITC. Fees for such sub-advisory services are paid by IFG.
In accordance with an Administrative Agreement, each 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 $21.00 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-twelth of the annual fee and is based upon the actual
number of accounts in existence during each month.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by Cash Reserves, Tax-Free Money and U.S. Government Money
Funds.
NOTE 3 -- 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 May 31, 1995,
included in Directors' Fees and Expenses in the Statement of Operations and
unfunded accrued pension costs and pension liability included in prepaid
expenses and accured expenses, respectively, in the Statement of Assets and
Liabilities were as follows:
Unfunded
Accrued
Pension Pension Pension
Fund Expenses Costs Liability
- - ------------------------------------------------------------------
Cash Reserves Fund $ 12,936 $ 24,035 $ 36,971
Tax-Free Money Fund 1,365 2,536 3,901
U.S. Government Money Fund 1,231 2,287 3,518
<PAGE>
INVESCO Money Market Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period Ended
Year Ended May 31 May 31 Year Ended January 31
----------------- ------------ ------------------------------------
1995 1994 1993 1993 1992 1991
(Note 1)
Cash Reserves Fund
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----------------- ------------ ------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.05 0.03 0.01 0.03 0.05 0.07
----------------- ------------ ------------------------------------
Net Asset Value - End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================= ============ ====================================
TOTAL RETURN 4.76% 2.58% 0.75%* 3.00% 5.35% 7.76%
RATIOS
Net Assets - End of Period
($000 Omitted) $644,341 $747,551 $490,932 $506,337 $557,708 $431,808
Ratio of Expenses to Average
Net Assets# 0.75% 0.81% 0.98%~ 0.80% 0.83% 0.76%
Ratio of Net Investment Income to
Average Net Assets# 4.65% 2.61% 2.26%~ 2.98% 5.17% 7.49%
<FN>
* Not Annualized
~ Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Period Ended
Year Ended May 31 May 31 Year Ended January 31
----------------- ------------ ------------------------------------
1995 1994 1993 1993 1992 1991
(Note 1)
Tax-Free Money Fund
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----------------- ------------ ------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.03 0.02 0.00+ 0.02 0.03 0.05
----------------- ------------ ------------------------------------
Net Asset Value - End of Period $1.00 $1.00 $ 1.00 $1.00 $1.00 $1.00
================= ============ ====================================
TOTAL RETURN 2.86% 1.84% 0.16%* 2.16% 3.42% 4.89%
RATIOS
Net Assets - End of Period
($000 Omitted) $58,780 $84,521 $63,498 $65,167 $60,413 $40,440
Ratio of Expenses to
Average Net Assets# 0.75% 0.75% 0.75%~ 0.75% 0.78% 0.90%
Ratio of Net Investment Income to
Average Net Assets# 2.77% 1.83% 2.03%~ 2.13% 3.30% 4.77%
<FN>
* These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
# Various expenses of Cash Reserves Fund were voluntarily absorbed by IFG for
the year ended May 31, 1995 and for Tax-Free Money Fund for the years ended
May 31, 1995 and 1994, the period ended May 31, 1993, and the years ended
April 30, 1993 and 1992. If such expenses had not been voluntarily absorbed
for Cash Reserves Fund, ratio of expenses to average net assets would have
been 0.85% and ratio of net investment income to average net assets would have
been 4.55%. If such expenses had not been voluntarily absorbed for Tax-Free
Money Fund, ratio of expenses to average net assets would have been 1.00%,
1.00%, 1.19%, 1.02%, and 0.99%, respectively, and ratio of net investment
income to average net assets would have been 2.52%, 1.58%, 1.59%, 1.86%, and
3.09%, for the above periods, respectively.
~ Annualized
+ Net Investment Income Earned and Distributed to Shareholders for the period
ended May 31, 1993 aggregated less than $0.01 on a per share basis.
</FN>
</TABLE>
<PAGE>
INVESCO Money Market Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period Year Year
Ended Ended Ended
Year Ended May 31 May 31 December 31 December 31
---------------------- ------- ----------- -----------
1995 1994 1993+ 1992 1991^
U.S. Government Money Fund
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
---------------------- ------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.05 0.03 0.01 0.03 0.03
---------------------- ------- ----------- -----------
Net Asset Value - End of Period $1.00 $1.00 $ 1.00 $1.00 $1.00
====================== ======= =========== ===========
TOTAL RETURN 4.66% 2.56% 0.93%* 2.97% 3.23%*
RATIOS
Net Assets - End of Period
($000 Omitted) $60,843 $73,912 $34,519 $30,282 $7,203
Ratio of Expenses to
Average Net Assets# 0.75% 0.75% 0.75%~ 0.75% 0.74%~
Ratio of Net Investment Income to
Average Net Assets# 4.55% 2.60% 2.27%~ 2.82% 4.54%~
<FN>
^ From April 26, 1991, commencement of operations, to December 31, 1991.
+ From January 1, 1993 to May 31, 1993.
* These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG for the years
ended May 31, 1995 and 1994, the period ended May 31, 1993, the year ended
December 31, 1992 and the period ended December 31, 1991. If such expenses had
not been voluntarily absorbed, ratio of expenses to average net assets would
have been 1.10%, 1.00%, 1.18%, 1.08%, and 1.93%, respectively, and ratio of
net investment income to average net assets would have been 4.20%, 2.35%,
1.84%, 2.49%, and 3.35%, for the above periods, respectively.
~ Annualized
</FN>
</TABLE>
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Money Market Funds, 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 Cash Reserves Fund, INVESCO
Tax-Free Money Fund, and INVESCO U.S. Government Money Fund (constituting
INVESCO Money Market Funds, Inc., hereafter referred to as the "Fund") at May
31, 1995, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods indicated, 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 May 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
June 30, 1995
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- - -------------------------------------------------------------------------------
International
Latin American Growth 34 * *
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
Emerging Growth 60 FIEGX Emgrth
Small Company 74 * *
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
- - -------------------------------------------------------------------------------
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
- - -------------------------------------------------------------------------------
Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
- - -------------------------------------------------------------------------------
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
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 or
appear 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, 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 an effective prospectus.
