ANNUAL REPORT
May 31, 1996
INVESCO
MONEY
MARKET
FUNDS, INC.
Cash Reserves Fund
U.S. Government Money Fund
Tax-Free Money Fund
Smart Choices
For Seeking Liquidity
And Safety
INVESCO FUNDS
<PAGE>
Graph: Gross Domestic Product
Quarterly Growth Rate (Annualized)
This bar graph illustrates the annualized quarterly growth rate for the
Gross Domestic Product, for the period from the first quarter of 1992
through the second quarter of 1996.
Economic Overview June 1996
The U.S. economy is sending mixed signals. In recent months, inflation
accelerated modestly and the U.S. trade deficit remained high. On the positive
side, recent figures for factory orders, inventories, and consumer confidence
were encouraging. Gains have also been seen for employment and personal income.
Overall, this mix of good and bad news has brightened the outlook for
gentle rises in Gross Domestic Product. First quarter GDP growth was estimated
at an annualized 2.2%, and second quarter should come in stronger. There is the
possibility that the Fed will tighten credit by raising short-term interest
rates, in the event the economy appears to be overheating.
As this report was written, the yield on the benchmark 30-year Treasury
bond stood around 7%. This is substantially higher that one year ago, and the
fixed-income markets have been understandably turbulent as prices dropped and
yields rose.
Nonetheless, taking all of the above and additional factors into account,
the INVESCO forecast remains consistent with our message for the past several
months: The soft landing for the economy appears intact.
This may well mean moderate inflation and long-term gains for stocks and
bonds, albeit with short-term volatility. Political complications, the on-going
budget conflict, and major corporate earnings disappointments would, however,
put strain on the bull market's legs.
Fund Management
Since 1993, U.S. Government Money Fund and Cash Reserves Fund have been
managed by INVESCO Vice President Richard R. Hinderlie. He began his investment
career in 1973, and has extensive experience in fixed-income analysis and
portfolio management. Dick received his MBA from Arizona State University and BA
in economics from Pacific Lutheran University. He is also co-manager of INVESCO
Short-Term Bond Fund.
Ingeborg S. Cosby has managed Tax-Free Money Fund since 1992. She launched
her investment career in 1982 as a portfolio manager assistant with First
Affiliated Securities. Inge joined INVESCO's fixed-income management group in
1985.
U.S. Government Money Fund
U.S. Government Money Fund is our highest quality money market fund. It
invests only in debt obligations issued or guaranteed by the U.S. government or
its agencies which mature in 365 days or less from the date they are purchased
for the portfolio, as well as repurchase agreements involving government and
government agency obligations. Fund shares are neither issued nor guaranteed by
the U.S. government. We expect that the fund's shares will always be valued at
$1, but this cannot be guaranteed.
<PAGE>
As of 5/31/96, the fund was invested in the following
short-term securities.(1)
Graph:
This pie chart shows the allocation of investments for the U.S. Government
Money Fund in short-term securities for each of the following categories:
Government Agency Obligations - 90.3%, Repurchase Agreements - 6.1%, Net
Cash - 3.6%.
Cash Reserves Fund
Compared to U.S. Government Money Fund, Cash Reserves Fund seeks a higher
level of daily income (paid monthly) through investments in a broader range of
short-term obligations. In addition to obligations issued or guaranteed by the
U.S. government, Cash Reserves Fund may also invest in high quality commercial
paper (short-term debt issued by corporations); certificates of deposit issued
by banks; and in corporate bonds which will mature 375 days or less after the
fund purchases them. Fund shares are neither issued nor guaranteed by the U.S.
government. We expect that the fund's shares will always be valued at $1, but
this cannot be guaranteed.
As of 5/31/96, Cash Reserves Fund was invested in short-term securities
with the following short-term securities.(1)
Graph:
This pie chart shows the allocation of investments for the
Cash Reserves Fund in short-term securities for each of the
following categories: Government Agency - 12.0%, First Tier -
87.8%, Net Cash -- not rated - .2%.
Tax-Free Money Fund
Tax-Free Money Fund seeks high daily income exempt from federal income
taxes. The fund invests only in bonds or notes rated in the two highest quality
categories by Moody's or Standard & Poor's. Fund shares are neither issued nor
guaranteed by the U.S. government. We expect that the fund's shares will always
be valued at $1, but this cannot be guaranteed.
As of 5/31/96, the fund was invested in short-term securities
with the following quality ratings.(1)
Graph:
This pie chart shows the allocation of investments for the Tax-Free Money
Fund in short-term securities for each of the following categories: First
Tier - 98.3%, Second Tier - 9.0%, Net Cash -- not rated - -7.3%.
(1) Ratings are provided by Moody's or Standard & Poor's.
Holdings and composition of holdings are subject to change.
<PAGE>
Statement of Investment Securities
May 31, 1996
<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 11.97%
Federal National Mortgage Association,
12/26/1996 5.42 $5,000,000 $4,997,322
Small Business Administration,
Guaranteed Loan Pool Certificates
1/25/2018~ 6.13 3,056,165 3,056,165
3/25/2018~ 6.13 3,499,478 3,499,478
Student Loan Marketing Association
11/24/1997~ 5.35 20,000,000 19,966,881
11/10/1998~ 5.35 1,000,000 1,000,000
1/13/1999~ 5.37 25,000,000 25,000,000
2/8/1999~ 5.37 12,750,000 12,750,000
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $70,269,846) 70,269,846
============
Commercial Paper 88.03%
AEROSPACE & DEFENSE 4.92%
Raytheon Co, 7/2/1996 5.39 29,000,000 28,867,897
------------
BUILDING & CONSTRUCTION PRODUCTS 3.37%
Weyerhaeuser Co, 8/15/1996 5.41 20,000,000 19,780,417
------------
Captive Finance 21.80%
AUTOMOBILE RELATED 4.24%
General Motors Acceptance
6/19/1996 5.37 6,500,000 6,482,840
6/28/1996 5.50 3,500,000 3,485,956
6/28/1996 5.47 15,000,000 14,940,150
------------
24,908,946
------------
FINANCIAL SERVICES 5.11%
American Express Credit 6/4/1996 5.33 25,000,000 25,000,000
6/18/1996 5.37 5,000,000 5,000,000
------------
30,000,000
------------
LEASING COMPANIES 2.20%
USL Capital, 7/8/1996 5.41 13,000,000 12,929,186
------------
MACHINERY 1.79%
Deere (John) Capital, 8/15/1996 5.43 10,500,000 10,500,000
------------
<PAGE>
RETAIL 6.85%
Penney (JC) Funding, 6/19/1996 5.40 10,000,000 9,973,550
Sears Roebuck Acceptance 6/10/1996 5.43 3,850,000 3,850,000
6/14/1996 5.37 3,000,000 3,000,000
6/17/1996 5.45 18,400,000 18,400,000
6/18/1996 5.39 5,000,000 5,000,000
------------
40,223,550
------------
TOBACCO 0.76%
BAT Capital, 6/20/1996 5.42 4,500,000 4,487,413
------------
UTILITIES 0.85%
CSW Credit, 6/26/1996 5.38 5,000,000 4,981,667
------------
TOTAL CAPTIVE FINANCE 128,030,762
------------
CHEMICALS 3.81%
Akzo Nobel NV 6/3/1996 5.40 5,200,000 5,198,467
6/20/1996 5.42 17,200,000 17,152,070
------------
22,350,537
------------
COMMERCIAL FINANCE 7.21%
International Lease Finance
6/7/1996 5.44 22,900,000 22,879,696
6/24/1996 5.39 7,500,000 7,474,748
National Rural Utilities
Cooperative Finance 6/5/1996 5.41 7,000,000 6,995,893
6/25/1996 5.38 5,000,000 4,982,433
------------
42,332,770
------------
CONSUMER FINANCE 9.18%
Beneficial Corp, 6/6/1996 5.36 10,000,000 10,000,000
Household Finance, 7/5/1996 5.38 14,000,000 14,000,000
New Center Asset Trust
6/19/1996 5.35 2,500,000 2,493,425
6/26/1996 5.38 20,000,000 19,926,667
6/28/1996 5.42 7,500,000 7,470,356
------------
53,890,448
------------
DIVERSIFIED COMPANIES 1.70%
General Electric, 6/21/1996 5.42 10,000,000 10,000,000
------------
DIVERSIFIED FINANCE 8.08%
Associates Corp of North America,
6/3/1996 5.45 16,450,000 16,450,000
General Electric Capital
6/24/1996 5.44 15,000,000 15,000,000
8/15/1996 5.44 10,000,000 10,000,000
8/15/1996 5.41 6,000,000 6,000,000
------------
47,450,000
------------
<PAGE>
ELECTRONICS 3.68%
Motorola Inc 6/18/1996 5.35 6,700,000 6,683,358
6/27/1996 5.36 15,000,000 14,942,908
------------
21,626,266
------------
INVESTMENT BROKERS 10.02%
Goldman Sachs Group LP, 6/14/1996 5.40 12,000,000 11,977,250
Merrill Lynch & Co 6/5/1996 5.39 9,000,000 8,994,750
6/28/1996 5.47 10,000,000 9,960,025
Morgan Stanley Group 6/6/1996 5.37 14,000,000 13,989,714
6/27/1996 5.45 14,000,000 13,946,411
------------
58,868,150
------------
LEASING COMPANIES 6.72%
Hertz Corp 6/10/1996 5.40 8,000,000 8,000,000
6/11/1996 5.34 2,000,000 2,000,000
6/25/1996 5.39 20,000,000 20,000,000
PHH Corp, 6/21/1996 5.38 9,500,000 9,472,133
------------
39,472,133
------------
MACHINERY 3.07%
Deere & Co, 6/27/1996 5.37 18,000,000 18,000,000
------------
MORTGAGE BANKING 4.47%
Weyerhaeuser Mortgage 6/13/1996 5.36 3,860,000 3,853,219
6/25/1996 5.38 7,500,000 7,473,600
6/25/1996 5.36 15,000,000 14,947,300
------------
26,274,119
------------
TOTAL COMMERCIAL PAPER
(Cost $516,943,499) 516,943,499
------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $587,213,345#) 587,213,345
============
TAX-FREE MONEY Fund
SHORT-TERM INVESTMENTS 100.00%
ALASKA 3.86%
Alaska Indl Dev & Export Auth
(Spenard Bldrs Supply Proj), VRD Rev,
Composite Ref Issue, Lot 1, 12/1/1996 3.64 895,000 895,000
Alaska Muni Bd Bank, FR, Gen Oblig,
1996 Series A, 3/1/1997 3.24 395,000 401,338
Anchorage, Alaska, FR, Sr Lien Ref
Elec Rev, 1986 Series A, 6/1/1996 4.00 620,000 632,400
North Slope Borough, Alaska, FR,
Gen Oblig, Series 1992A, 6/30/1996 3.49 205,000 205,158
------------
2,133,896
------------
<PAGE>
ARIZONA 2.95%
Maricopa Cnty Indl Dev Auth, Arizona
(Samaritan Hlth Svc Hosp System), VRD,
Rev Ref, Series 1985B 2, 12/1/2008~ 3.69 1,400,000 1,400,000
Univ of Arizona Fndtn, FR, Ref Ctfs of
Participation, Series 8, 8/1/1996 3.40 230,000 230,000
------------
1,630,000
------------
ARKANSAS 2.15%
Craighead Cnty Jonesboro School
Dist #1, Arkansas, FR, Constr,
Series 1996, 6/1/1996 3.81 215,000 215,000
Crossett, Arkansas
(Georgia-Pac Corp Proj),
A/FR, PCR Ref, Series 1991,
10/1/1998~ 3.59 500,000 500,000
Little Rock, Arkansas, FR, Airport
Passenger Facil Charge Rev,
Series 1996, 5/1/1997~~ 4.19 475,000 475,000
------------
1,190,000
------------
CALIFORNIA 0.18%
Los Angeles Regl Airports Impt,
California (American Airlines/
Los Angeles Intl Airport),
Facils Sublease FDR, Issue 1984,
12/1/2025~ 3.64 100,000 100,000
------------
FLORIDA 6.85%
Broward Cnty, Florida, FR,
Pub Impt Ref, Series 1986, 7/1/1996 3.74 250,000 255,830
Dade Cnty, Florida, FR,
Aviation Rev Ref, Series 1995A,
10/1/1996 3.69 500,000 501,866
Dade Cnty, Florida, FR, Wtr & Swr
System Rev Ref, Series 1993,
10/1/1996 3.69 300,000 300,756
Flagler Cnty School Dist, Florida,
FR, Gen Oblig Ref, Series 1992,
9/1/1996 3.42 225,000 225,687
Florida Dept of Nat Resources, FR,
Save Our Coast Rev, Series 1985G,
7/1/1996 3.79 300,000 307,218
Putnam Cnty Dev Auth, Florida
(Seminole Elec Cooperative Proj),
A/FR, PCR, Series 1984D, 12/15/2009~ 3.29 1,000,000 1,000,000
St Lucie Cnty, Florida
(Savannah Hosp Proj), FRD, IDR,
Series 1985, 11/1/2015~ 3.74 935,000 935,000
Venice, Florida, FR, Cap Impt Rev,
Series 1988, 11/1/1996 3.49 250,000 259,051
------------
3,785,408
------------
<PAGE>
GEORGIA 11.57%
Burke Cnty Dev Auth, Georgia
(Oglethorpe Pwr Vogtle Proj), ATS,
PCR, Series 1994A, 1/1/2016~ 3.94 2,300,000 2,300,000
DeKalb Cnty Hosp Auth, Georgia
(DeKalb Med Ctr Proj), VR, RAC,
Series 1993B, 9/1/2009~ 3.59 1,345,000 1,345,000
DeKalb Private Hosp Auth, Georgia
(Egelston Children's Hosp at Emory
Univ Proj), VRD, RAC, Series 1994B,
12/1/2017~ 3.49 500,000 500,000
Macon-Bibb Cnty Hosp Auth, Georgia
(Med Ctr of Cent Georgia),
AR, RAC, Series 1994, 4/1/2007~ 3.59 1,745,000 1,745,000
Savannah Econ Dev Auth, Georgia
(Home Depot Proj), AR, Exmp
Facil Rev, Series 1995B, 8/1/2025~ 3.69 500,000 500,000
------------
6,390,000
------------
HAWAII 0.92%
Hawaii, FR, Gen Oblig, 1986 Series BF,
8/1/1996 3.41 500,000 510,341
------------
ILLINOIS 8.18%
Chicago, Illinois, AR, Gen Oblig
Tender Nts, Series 1995A, 10/31/1996 3.64 500,000 500,000
Chicago Pub Bldg Commn, Illinois
(Chicago Brd of Ed), FR, Bldg Rev,
Series 1993A, 12/1/1996 3.60 400,000 400,775
Chicago School Fin Auth, Illinois,
Gen Oblig School Assistance,
Ref, Series 1986B, 6/1/1996 3.75 500,000 510,000
Illinois Dev Fin Auth
(6 West Hubbard Street Proj),
F/FR, IDR, Series 1986, 12/1/2016~ 3.99 905,000 905,000
Illinois Dev Fin Auth (Kindlon
Partners Proj), Indl Proj Rev,
FR, Series 1994, 3/1/2009~ 3.84 1,300,000 1,300,000
VR, Series 1991, 5/1/2006~ 3.84 900,000 900,000
------------
4,515,775
------------
INDIANA 7.24%
Daviess Cnty, Indiana (Perdue Farms/
Shenandoah Valley Farms Facil),
V/FRD, Econ Dev Rev, 1987 Issue,
9/1/2007~ 3.59 1,500,000 1,500,000
Gary, Indiana (US Steel Proj), FRD,
Environmental Impt Rev Ref,
Series 1984, 7/15/2002~ 3.84 1,000,000 1,000,000
Indiana Transn Fin Auth, FR, Hwy Rev,
Series 1993A, 6/1/1996 3.79 1,000,000 1,000,000
<PAGE>
Newton Cnty, Indiana (Intec Group
Proj), A/FR, Econ Dev Rev,
Series 1994, 9/1/2010~ 3.84 500,000 500,000
------------
4,000,000
------------
KANSAS 2.89% Fairway, Kansas (Nichols (J C)
Co Proj), FRD, Indl Rev,
Series 1984, 11/1/2014~ 3.89 500,000 500,000
Johnson Cnty, Kansas, FR, Gen Oblig,
Series 1981, 9/1/1996 3.98 193,000 196,250
Kansas City, Kansas (PQ Corp Proj),
AR, Indl Rev, Series 1985, 8/1/2015~ 3.69 400,000 400,000
Shawnee, Kansas (Hampton Woods Apts
Proj), F/FR, Multifamily Hsg Rev,
Series 1985, 12/1/2009~+ 3.74 500,000 500,000
------------
1,596,250
------------
LOUISIANA 3.89%
Louisiana, FR, Gen Oblig Ref,
Series 1996-A, 8/1/1996~~ 3.50 1,000,000 1,000,000
Louisiana Pub Facils Auth
(Louisiana Dept of Hlth & Hosps
Med Ctr of Lousiana at New
Orleans Proj), FR, Rev, Series 1992,
10/15/1996 3.47 250,000 251,150
Plaquemines Port Harbor & Terminal
Dist, Louisiana (Chevron Pipe Line
Proj), AR, Port Facils Rev,
Series 1984, 9/1/2008~ 3.87 400,000 400,000
Plaquemines Port Harbor & Terminal
Dist, Louisiana (Intl Marine
Terminals Proj), ATS, Port
Facils Rev Ref, Series 1984 B,
3/15/2006~ 3.22 500,000 500,000
------------
2,151,150
------------
MICHIGAN 1.08%
Michigan Strategic Fund (
United Fixtures Proj), AR,
Ltd Oblig Rev, Series 1995, 5/1/2015~ 3.74 595,000 595,000
------------
MINNESOTA 0.91%
Rochester, Minnesota (Mayo Fndtn/
Mayo Med Ctr), ATS, Hlth Care
Facils Rev, TECP, Series 1992 A,
8/20/1996 3.54 500,000 500,000
------------
<PAGE>
MISSISSIPPI 0.91%
Jackson Cnty Wtr System, Mississippi
(Chevron Corp), VR, Gen Oblig Ref,
Series 1994, 11/1/2024~ 3.31 500,000 500,000
------------
MISSOURI 2.72%
Columbia, Missouri, VR, Special Oblig
Ins Reserve, Series 1988 A,
6/1/2008~+ 3.59 1,500,000 1,500,000
------------
NEBRASKA 0.91%
Hamilton Cnty, Nebraska (Iams Co Proj),
VR, IDR Ref, Series 1990, 7/1/2005~ 3.75 500,000 500,000
------------
NEVADA 2.40%
Clark Cnty, Nevada, AR, Airport
System Ref Rev, Series 1993A,
7/1/2012~ 3.49 1,000,000 1,000,000
Incline Vlg Gen Impt Dist, Nevada,
FR, Gen Oblig, Recreational
Facils Impt & Ref, Series
October 1, 1995, 9/1/1996 3.81 325,000 325,909
------------
1,325,909
------------
NEW JERSEY 4.16%
New Jersey Econ Dev Auth (Genlyte
Camden Cnty Proj), AR, IDR Ref,
Series 1990, 12/19/2009~ 4.04 2,300,000 2,300,000
------------
NEW YORK 0.91%
New York Energy Research & Dev Auth
(New York Elec & Gas), AR, PCR,
Series 1985 B, 10/15/2015~ 3.52 500,000 500,581
------------
OKLAHOMA 2.52%
Mustang Impt Auth, Oklahoma, FR,
Ref Rev, Series 1995, 12/1/1996 3.78 395,000 395,000
Oklahoma Inds Auth (St Anthony
Physicians Bldg Proj), VR,
Med Practice Facil Rev, Series 1986,
6/1/2016~ 3.64 1,000,000 1,000,000
------------
1,395,000
------------
OREGON 0.72%
Oregon Dept of Admin Svcs, FR, Ctfs
of Participation, 1995
Series A, 11/1/1996 3.70 400,000 400,000
------------
<PAGE>
PENNSYLVANIA 1.81%
Delaware Cnty Indl Dev Auth,
Pennsylvania (Resource Recovery
Proj), AR, Ref Rev,
Series 1993 G, 12/1/2013~ 3.56 1,000,000 1,002,425
------------
SOUTH CAROLINA 2.31%
Anderson Cnty, South Carolina
(Belton Inds Proj), AR,
Indl Rev, Series 1991A, 7/1/2004~ 3.90 785,000 785,000
York Cnty, South Carolina (North
Carolina Elec Membership Proj),
F/FR, PCR, Series 1984N-4,
9/15/2014~ 3.22 490,000 490,000
------------
1,275,000
------------
TENNESSEE 3.17%
Chattanooga, Tennessee, FR, Gen
Oblig Swr & Sewage Facils,
Series 1995, 6/1/1996 3.79 445,000 445,000
Greenville Hlth & Edl Facils Brd,
Tennessee (Laughlin Memorial
Hosp Proj), VRD Rev, Series 1992,
10/1/2014~ 3.64 1,000,000 1,000,000
Metro Govt of Nashville & Davidson
Cnty, Tennessee, FR, Gen Oblig Ref,
Series 1986, 6/15/1996 3.74 300,000 306,299
------------
1,751,299
------------
TEXAS 16.17%
Bedford, Texas (Tarrant Cnty),
FR, Gen Oblig, Series 1996,
2/1/1997~~ 3.51 265,000 265,000
Birdville Indpt School Dist, Texas,
FR, Unltd Tax School Bldg,
Series 1988, 8/15/1996 3.32 350,000 353,433
Burleson Indpt School Dist (Johnson &
Tarrant Cntys), Texas, FR,
Unltd Tax Ref, Series 1995,
8/1/1996 3.76 605,000 605,000
Crawford Indl Dev Corp, Texas
(Franklin Inds Proj), VR, IDR,
Series 1987, 10/1/2012~ 3.84 1,900,000 1,900,000
Denton, Texas (Denton Cnty), FR, Util
System Rev, Series 1996, 12/1/1996~~ 3.81 700,000 712,383
Eanes Indpt School Dist, Texas, FR,
Unltd Tax Ref, Series 1992, 8/15/1996 3.39 320,000 320,477
Eanes Indpt School Dist, Texas, FR,
Unltd Tax Ref, Series 1992, 8/15/1996 3.32 500,000 500,742
Galveston Cnty Wtr Auth, Texas
(Mainland Proj), FR, Rev,
Series 1985, 7/10/1996 3.78 250,000 251,339
<PAGE>
Grapevine Indl Dev, Texas (American
Airlines Proj), VR, Multiple
Mode Rev, 1984 Series A-3, 12/1/2024~ 3.64 600,000 600,000
Houston, Texas, FR, Exchangeable
Prior Lien Wtr & Swr System Rev,
Series 1986, 12/1/1996 6.47 300,000 395,949
Houston, Texas, FR, Prior Lien Wtr
System Rev, Series 1986, 12/1/1996 3.27 380,000 309,333
Keller Indpt School Dist, Texas, FR,
Gen Oblig, Series 1986, 8/15/1996 3.51 500,000 504,996
Little Elm Indpt School Dist, Texas
(Denton Cnty), Unlt Tax Ref,
Series 1995A, 8/15/1996 3.70 305,000 305,000
Sherman Indpt School Dist, Texas, FR,
Unltd Tax Ref, Series 1996,
8/15/1996 3.23 295,000 295,000
Texas, TRAN, FR, Series 1995A,
8/30/1996 3.99 500,000 500,888
8/30/1996 3.81 350,000 350,776
8/30/1996 3.35 400,000 401,368
Texas Pub Fin Auth, FR, Gen Oblig,
Series 1993A, 10/1/1996 3.41 355,000 360,321
------------
8,932,005
------------
UTAH 4.59%
Granite School Dist Ed Brd, Utah
(Salt Lake Cnty), FR, Gen Oblig Ref,
Series 1992, 6/1/1996 3.79 625,000 625,000
Salt Lake City, Utah (Salt Lake Cnty),
FR, Gen Oblig Airport, Series 1975,
7/1/1996 3.66 200,000 200,440
Salt Lake City, Utah (Salt Lake Cnty),
FR, Gen Oblig Pub Bldg, Series 1986,
6/15/1996 3.39 1,000,000 1,011,453
Tremonton City, Box Elder Cnty, Utah
(La-Z-Boy Chair Proj), VRD, IDR,
Series 1990, 6/1/2000~ 4.04 700,000 700,000
------------
2,536,893
------------
VIRGINIA 0.91%
Chesterfield Cnty Indl Dev Auth,
Virginia (Philip Morris Proj), AR,
PCR Ref, Series 1992, 4/1/2009~+ 3.59 500,000 500,000
------------
WASHINGTON 2.21%
Washington, FR, Gen Oblig Ref,
Series 1982, 10/1/1996 3.58 500,000 510,391
Series 1988, 12/1/1996 3.68 200,000 203,199
Series R-86D, 9/1/1996 3.74 500,000 505,134
------------
1,218,724
------------
<PAGE>
WISCONSIN 0.91%
Janesville, Wisconsin
(Freedom Plastics Proj), AR, IDR,
Series 1995, 11/1/2005~ 3.84 500,000 500,000
------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $55,235,656#) 55,235,656
============
U.S. GOVERNMENT MONEY Fund
SHORT-TERM INVESTMENTS 100.00%
US Government Agency Obligations 93.68%
Federal Home Loan Bank
8/5/1996 5.43 8,590,000 8,600,295
9/25/1996 5.63 500,000 503,995
10/25/1996 5.52 500,000 502,982
11/22/1996 5.51 500,000 503,622
12/11/1996 5.61 500,000 499,149
Federal Home Loan Mortgage
6/3/1996 5.28 2,860,000 2,859,174
6/11/1996 5.30 10,000,000 9,985,667
6/20/1996 5.33 6,527,000 6,509,121
6/28/1996 5.36 7,500,000 7,470,469
6/28/1996 5.29 15,000,000 14,941,500
Federal National Mortgage Association
6/10/1996 5.74 3,500,000 3,502,340
6/11/1996 5.29 3,000,000 2,995,667
8/12/1996 5.65 2,300,000 2,311,059
12/10/1996 5.50 500,000 505,449
12/26/1996 5.42 5,020,000 5,017,311
Student Loan Marketing Association
1/13/1999~ 5.36 5,000,000 5,000,000
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $71,707,800) 71,707,800
------------
Repurchase Agreements 6.32%
Repurchase Agreement with State
Street Bank & Trust Co dated 5/31/1996
due 6/3/1996 at 5.230%, repurchased at
$4,840,109 (Collateralized by US Treasury
Bonds due 11/15/2015 at 9.875%,
value $4,922,419)
(Cost $4,838,000) 4,838,000
------------
4,838,000
------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $76,545,800#) 76,545,800
------------
<PAGE>
<FN>
The following abbreviations may be used in portfolio descriptions:
A/FR* - Adjustable/Fixed Rate
ACES* - Adjustable Convertible Extendable Securities
AR* - Adjustable Rate
ARD* - Adjustable Rate Demand
ATS* - Adjustable Tender Securities
BAN - Bond Anticipation Notes
DATES* - Daily Adjustable Tax-Exempt Securities
FDR* - Flexible Demand Revenue
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 Rate Investment 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
TRAN - 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.
~~ Security is a when-issued security.
+ Security has been designated as collateral for when-issued securities.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Assets and Liabilities
May 31, 1996
<TABLE>
<CAPTION>
Cash Tax-Free U.S.
Reserves Money Government
Fund Fund Money Fund
-------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment Securities:
At Cost~ $587,213,345 $55,235,656 $76,545,800
=================================================
At Value~ 587,213,345 55,235,656 76,545,800
Cash 497,134 188,865 49,244
Receivables:
Investment Securities Sold 348,841 0 0
Fund Shares Sold 14,298,515 609,472 2,891,372
Interest 957,937 567,824 563,828
Prepaid Expenses and
Other Assets 91,597 23,011 32,435
-------------------------------------------------
TOTAL ASSETS 603,407,369 56,624,828 80,082,679
-------------------------------------------------
LIABILITIES
Payables:
Distributions to Shareholders 34,367 6,374 6,148
Investment Securities
Purchased 0 4,760,257 0
Fund Shares Repurchased 16,078,990 207,637 685,002
-------------------------------------------------
Accrued Expenses and
Other Payables 16,988 1,981 0
-------------------------------------------------
TOTAL LIABILITIES 16,130,345 4,976,249 691,150
-------------------------------------------------
Net Assets at Value* 587,277,024 51,648,579 79,391,529
=================================================
Shares Outstanding 587,277,024 51,648,579 79,391,529
Net Asset Value,
Offering and Redemption
Price per Share 1.00 1.00 1.00
=================================================
<FN>
~ Investment securities at cost and value at May 31, 1996 include a repurchase
agreement of $4,838,000 for U.S. Government Money Fund.
* 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 $587,277,024, $51,648,579 and
$79,391,529, respectively.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Money Market Funds, Inc.
Statement of Operations
Year Ended May 31, 1996
<TABLE>
<CAPTION>
Cash Tax-Free U.S.
Reserves Money Government
Fund Fund Money Fund
-------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
INTEREST INCOME $36,881,555 $2,157,069 $4,251,185
-------------------------------------------------
EXPENSES
Investment Advisory Fees 2,739,278 286,046 377,802
Transfer Agent Fees 2,445,244 177,342 280,826
Administrative Fees 106,900 18,582 21,334
Custodian Fees and Expenses 148,512 17,405 20,717
Directors' Fees and Expenses 42,777 11,153 11,853
Professional Fees and Expenses 37,663 21,409 14,224
Registration Fees and Expenses 145,542 40,277 41,197
Reports to Shareholders 23,983 20,908 24,267
Other Expenses 19,337 5,528 2,671
-------------------------------------------------
TOTAL EXPENSES 5,909,236 598,650 794,891
Fees and Expenses Absorbed
by Investment Adviser (301,299) (159,783) (136,594)
Fees and Expenses Paid
Indirectly (66,178) (9,755) (11,008)
-------------------------------------------------
NET EXPENSES 5,541,759 429,112 647,289
Net Investment Income and
Net Increase in Net Assets
from Operations 31,339,796 1,727,957 3,603,896
=================================================
</TABLE>
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
---------------------------- --------------------------- ---------------------------
1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS AND
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment
Income Earned
and Distributed
to Shareholders $31,339,796 $33,026,615 $1,727,957 $1,990,337 $3,603,896 $3,082,764
---------------------------- --------------------------- ---------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales
of Shares 3,616,602,090 2,785,571,750 184,575,224 178,317,759 479,278,785 260,527,998
Reinvestment of
Distributions 28,770,174 30,390,470 1,603,520 1,866,166 3,206,104 2,834,730
---------------------------- --------------------------- ---------------------------
3,645,372,264 2,815,962,220 186,178,744 180,183,925 482,484,889 263,362,728
Amounts Paid for
Repurchases
of Shares (3,702,436,013) (2,919,172,944) (193,309,799) (205,924,818) (463,936,348) (276,431,946)
NET INCREASE
(DECREASE) IN
NET ASSETS
FROM FUND SHARE
TRANSACTIONS (57,063,749) (103,210,724) (7,131,055) (25,740,893) 18,548,541 (13,069,218)
NET ASSETS
Beginning of
Period 644,340,773 747,551,497 58,779,634 84,520,527 60,842,988 73,912,206
---------------------------- --------------------------- ---------------------------
End of Period 587,277,024 644,340,773 51,648,579 58,779,634 79,391,529 60,842,988
============================ =========================== ===========================
FUND SHARE TRANSACTIONS
Shares Sold 3,616,602,090 2,785,571,750 184,575,224 178,317,759 479,278,785 260,527,998
Shares Issued
from
Reinvestment
of Distributions 28,770,174 30,390,470 1,603,520 1,866,166 3,206,104 2,834,730
---------------------------- --------------------------- ---------------------------
3,645,372,264 2,815,962,220 186,178,744 180,183,925 482,484,889 263,362,728
Shares
Repurchased (3,702,436,013) (2,919,172,944) (193,309,799) (205,924,818) (463,936,348) (276,431,946)
Net Increase
(Decrease)
in Fund Shares (57,063,749) (103,210,724) (7,131,055) (25,740,893) 18,548,541 (13,069,218)
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Money Market Funds, Inc.
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Money Market
Funds, Inc. (the "Fund"), was incorporated in Maryland and presently consists of
three separate Funds: Cash Reserves Fund, Tax-Free Money Fund and U.S.
Government Money Fund. The investment objectives of the Funds are: to seek as
high a level of current income for Cash Reserves Fund; to seek as high a level
of current income exempt from federal income taxation for Tax-Free Money Fund;
and to seek current income by investing only in debt obligations issued or
guaranteed by the U.S. Government or its agencies for the 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.
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 - Securities held by the Fund are valued at their
market value determined by the amortized cost method of valuation. 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. WHEN-ISSUED SECURITIES - When-issued securities held by the Fund are fully
collateralized by other 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 when-
issued securities.
C. 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.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date. Interest income, which
may be comprised of stated coupon rate, market discount and original issue
discount, is recorded on the accrual basis. The Fund amortizes discounts
and premiums paid on purchases of securities to the earliest put or call
date. Cost is determined on the specific identification basis.
E. 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, 1996, xx.xx% were exempt from federal income
taxes.
<PAGE>
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - All 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.
G. 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.
Under an agreement between each 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. Such credits are
included in Fees and Expenses Paid Indirectly in the Statement of
Operations.
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 for each Fund 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% on
average net assets in excess of $500 million.
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 received a transfer agent fee at an annual rate of $21.00 per
shareholder account, or per participant in an omnibus account through April 30,
1996. 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. As of
May 1, 1996, the transfer agent fee became $27.00 per shareholder account or,
where applicable, per participant in an omnibus account, per year, computed in a
manner similar to the previous fee.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by the Cash Reserves and U.S. Government Money Funds. IFG and
ITC have voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by Tax-Free Money Fund.
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. As of July 1, 1996, benefits will be based on an annual
rate of 40% of the retainer fee at the time of retirement. Pension expenses for
the year ended May 31, 1996, included in Directors' Fees and Expenses in the
Statement of Operations, and unfunded accrued pension costs and pension
liability included in Prepaid Expenses and Accrued Expenses, respectively, in
the Statement of Assets and Liabilities were as follows:
<PAGE>
<TABLE>
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Reserves Fund $7,457 $19,061 $39,454
Tax-Free Money Fund 722 2,092 4,179
U.S. Government Money Fund 809 1,690 3,730
</TABLE>
<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
--------------------------------- --------- ---------------------
1996 1995 1994 1993>> 1993 1992
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 AND DISTRIBUTIONS
FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.05 0.05 0.03 0.01 0.03 0.05
--------------------------------- --------- ---------------------
Net Asset Value - End of Period 1.00 1.00 1.00 1.00 1.00 1.00
================================= ========= =====================
TOTAL RETURN 5.01% 4.76% 2.58% 0.75%* 3.00% 5.35%
RATIOS
Net Assets - End of Period
($000 Omitted) 587,277 644,341 747,551 490,932 506,337 557,708
Ratio of Expenses to Average
Net Assets# 0.87%@ 0.75% 0.81% 0.98% ~0.80% 0.83%
Ratio of Net Investment Income
to Average Net Assets# 4.86% 4.65% 2.61% 2.26%~ 2.98% 5.17%
<FN>
>> From February 1, 1993 to May 31, 1993, the Fund's new fiscal year-end.
* 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 year
ended May 31, 1996 and 1995. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 0.92% and 0.85%,
respectively, and ratio of net investment income to average net assets would
have been 4.81% and 4.55%, respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Money Market Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Period
Ended
Year Ended May 31 May 31 Year Ended April 30
--------------------------------- --------- ---------------------
1996 1995 1994 1993>> 1993 1992
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 AND DISTRIBUTIONS
FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.03 0.03 0.02 0.00+ 0.02 0.03
--------------------------------- --------- ---------------------
Net Asset Value - End of Period 1.00 1.00 1.00 1.00 1.00 1.00
================================= ========= =====================
TOTAL RETURN 3.08% 2.86% 1.84% 0.16%* 2.16% 3.42%
RATIOS
Net Assets -End of Period
($000 Omitted) 51,649 58,780 84,521 63,498 65,167 60,413
Ratio of Expenses to Average
Net Assets# 0.77%@ 0.75% 0.75% 0.75%~ 0.75% 0.78%
Ratio of Net Investment Income
to Average Net Assets# 3.03% 2.77% 1.83% 2.03%~ 2.13% 3.30%
<FN>
>> From May 1, 1993 to May 31, 1993, the Fund's new fiscal year-end.
+ 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.
* 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 and ITC for the
years ended May 31, 1996, 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, ratio of expenses to average net assets would have been 1.05%, 1.00%,
1.00%, 1.19%, 1.02% and 0.99%, respectively, and the ratio of net investment
income to average net assets would have been 2.75%, 2.52%, 1.58%, 1.59%, 1.86%
and 3.09%, respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Money Market Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Year Period
Period Ended Ended
Ended December December
Year Ended May 31 May 31 31 31
----------------------------------- --------- --------- ---------
1996 1995 1994 1993>> 1992 1991^
U.S. Government 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 AND DISTRIBUTIONS
FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.05 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 1.00
=================================== ========= ========= =========
TOTAL RETURN 4.90% 4.66% 2.56% 0.93%* 2.97% 3.23%*
RATIOS
Net Assets -End of Period
($000 Omitted) 79,392 60,843 73,912 34,519 30,282 7,203
Ratio of Expenses to Average
Net Assets# 0.87%@ 0.75% 0.75% 0.75%~ 0.75% 0.74%~
Ratio of Net Investment Income to
Average Net Assets# 4.78% 4.55% 2.60% 2.27%~ 2.82% 4.54%~
<FN>
>> From January 1, 1993 to May 31, 1993, the Fund's new fiscal year-end.
^ From April 26, 1991, commencement of operations, to December 31, 1991.
* 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, 1996, 1995 and 1994, the periods ended May 31, 1993, the year
ended December 31, 1992 and the period ended December 31, 1991, respectively. If
such expenses had not been voluntarily absorbed, ratio of expenses to average
net assets would have been 1.05%, 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 4.59%, 4.20%, 2.35%, 1.84%, 2.49% and 3.35%, respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ 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 Cash Reserves Fund, Tax-Free Money
Fund, and U.S. Government Money Fund (constituting INVESCO Money Market Funds,
Inc., hereafter referred to as the "Fund") at May 31, 1996, 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, 1996 by
correspondence with the custodian and brokers 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 26, 1996
<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 IVAGX AsianGr
- --------------------------------------------------------------------------------
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, please 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.
