KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
- --------------------------------------------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS(TM)
- --------------------------------------------------------------------------------
INVESCO Money
Market Funds
CASH RESERVES FUND
U.S. GOVERNMENT MONEY FUND
TAX-FREE MONEY MARKET
SEMI-
ANN
UAL
SEMIANNUAL REPORT | November 30, 1999 [INVESCO ICON] INVESCO
<PAGE>
MONEY MARKET FUNDS
A NOTE ON MONEY MARKET FUNDS AT INVESCO
- -------------------------------------------------------------------------------
As investors turn increasingly to money market funds as both short-term savings
vehicles and bulwarks against market volatility, we thought it useful to
reiterate our approach to money market management at INVESCO.
o We manage Cash Reserves Fund as a convenient vehicle for providing
high-quality current yields for investors, while allowing them quick and easy
access to their money through free checkwriting.
o Invested in securities backed by the federal government or its agencies, U.S.
Government Money Fund is an attractive option for shareholders primarily
concerned with safety of principal. Of INVESCO's five money market fund
alternatives, this offers the highest credit quality.
o Tax-Free Money Fund helps shelter its investors from federal taxes by
investing in the debt obligations of states and municipalities. (Income may be
subject to state and local taxes, as well as the federal Alternative Minimum
Tax.)
o For institutions and individuals with more than $100,000 to invest, we also
manage two other money market funds. INVESCO Treasurer's Series Funds, Money
Market Reserve Fund and Tax-Exempt Reserve Fund, provide a lower-cost,
higher-yield option. The two Treasurer's Funds have an expense ratio fixed at
0.25%, which helps insure extremely competitive yields for investors. The
ranking firm IBC recently placed Tax-Exempt Reserve Fund third and Money
Market Reserve Fund thirteenth in their respective categories based on
seven-day yields.*
While money market funds are not insured by the federal government, they provide
a low-risk and increasingly convenient cash management tool for investors. An
investment in these funds is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the funds
seek to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the funds.
/s/Richard R. Hinderline /s/Ingeborg S. Cosby
Richard R. Hinderlie, Vice President Ingeborg S. Cosby, Vice President
- -------------------------------------------------------------------------------
RICHARD R. HINDERLIE
VICE PRESIDENT, INVESCO FUNDS GROUP. BA, PACIFIC LUTHERAN UNIVERSITY, MBA,
ARIZONA STATE UNIVERSITY. JOINED INVESCO IN 1993. BEGAN INVESTMENT CAREER IN
1973. HAS MANAGED CASH RESERVES FUND AND U.S. GOVERNMENT MONEY FUND SINCE 1993,
AND TREASURER'S MONEY MARKET RESERVE FUND SINCE MID-1999.
INGEBORG S. COSBY
VICE PRESIDENT, INVESCO FUNDS GROUP. JOINED INVESCO IN 1985. BEGAN INVESTMENT
CAREER IN 1982. HAS MANAGED TAX-FREE MONEY FUND SINCE 1987, AND TREASURER'S
TAX-EXEMPT RESERVE FUND SINCE MID-1999.
*IBC MONEY FUND REPORT, December 1999. IBC is an independent mutual fund analyst
specializing in money market funds. INVESCO Treasurer's Tax-Exempt Reserve
ranked #3 out of 289 tax-free money funds based on its 7-day yield as of
December 21, 1999. INVESCO Treasurer's Money Market Reserve ranked #13 out of
258 non-government money funds based on its 7-day yield as of December 21, 1999.
Past performance is no guarantee of future results.
<PAGE>
INVESCO | SEMIANNUAL REPORT | NOVEMBER 30, 1999
MARKET HEADLINES: JUNE 1999 TO NOVEMBER 1999
The six months ended November 30, 1999, represented the first period in awhile
in which the world's markets were not preoccupied with economic turmoil. With
concerns over currency meltdowns and banking crises behind them, investors could
once again focus on the longer-term economic potential of the world's economies.
In Asia, the financial spigots reopened as confidence returned, while in Europe
the markets moved higher, though more modestly. In the United States, attention
returned to the remarkable economic expansion, now entering its ninth year.
The U.S. economy finished the last year of the millennium with the strongest job
market in decades--a seemingly sure indicator that inflation would soon be on
the way. Indeed, several moderately troubling inflation signals such as tighter
job markets and healthy wage increases were enough for Alan Greenspan and his
fellow Federal Reserve Board Governors to raise short-term interest rates on
three occasions, leading market interest rates higher.
By the fall, Fed intervention had taken its toll on interest rate-sensitive
sectors such as homebuilding and financial services. The public received the
message as well: Consumer confidence, while still high, began to drift lower as
the public considered higher mortgage interest rates and a flatter stock market.
Meanwhile, bond prices languished due to higher rates and an imbalance between
supply and demand.
With the world economy coming back to life and consumers still spending,
however, rising rates barely slowed down most major U.S. companies. Indeed,
profit growth at many firms surged back from last year's slowdown. This posed a
strong contrast to the classic late stages of most expansions, when profit
growth should theoretically slow. If anything, leading companies seemed to be
picking up speed.
Torn between good profit news on the one hand and rising interest rates on the
other, investors waffled and the domestic equity markets moved sideways
throughout the summer and early fall. Interestingly, many market watchers became
more optimistic about performance in 2000, based partly on their hope that the
Y2K issue would no longer hang over the markets. Indeed, October and November
saw a strong rally driven largely by strong mutual fund inflows, which suggested
that an increasingly confident investing public was putting its money to
work--and the first indications of holiday spending suggested that the Grinch
would not steal Christmas in 1999.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
INVESCO Money Market Funds, Inc.
November 30, 1999
UNAUDITED
<TABLE>
<CAPTION>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
Cash Reserves Fund
100.00 SHORT-TERM INVESTMENTS
8.20 US GOVERNMENT AGENCY OBLIGATIONS
Fannie Mae
1/19/2000 5.65 $ 17,500,000 $ 17,368,231
1/20/2000 5.69 13,000,000 12,899,535
Freddie Mac
12/30/1999 5.51 13,500,000 13,441,169
1/14/2000 5.67 20,000,000 19,864,318
==========================================================================================
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Amortized Cost $63,573,253) 63,573,253
==========================================================================================
91.56 COMMERCIAL PAPER
2.77 AUTO PARTS
PACCAR Financial
12/6/1999 5.37 13,000,000 12,990,453
12/23/1999 5.58 8,500,000 8,471,530
==========================================================================================
21,461,983
3.87 AUTOMOBILES
General Motors Acceptance, 12/1/1999 5.43 30,000,000 30,000,000
==========================================================================================
5.55 BANKS
US Bancorp, 12/1/1999 5.40 10,000,000 10,000,000
Wells Fargo, 2/29/2000 5.96 33,500,000 33,014,912
==========================================================================================
43,014,912
7.42 CONSUMER FINANCE
American Express Credit
12/28/1999 5.50 18,750,000 18,750,000
12/29/1999 5.50 18,750,000 18,750,000
Household Finance, 12/7/1999 5.56 20,000,000 20,000,000
==========================================================================================
57,500,000
3.87 ELECTRIC UTILITIES
National Rural Utilities Cooperative Finance
8/2/2000 5.41 30,000,000 30,000,000
==========================================================================================
10.53 ELECTRICAL EQUIPMENT
General Electric, 12/27/1999 5.52 35,000,000 35,000,000
General Electric Capital Services
1/26/2000 6.11 20,000,000 20,000,000
1/26/2000 6.10 6,600,000 6,600,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
1/26/2000 6.08 $ 20,000,000 $ 20,000,000
==========================================================================================
81,600,000
11.94 FINANCIAL
American General Finance, 12/10/1999 5.61 20,000,000 20,000,000
Associates Corp of North America,
12/1/1999 5.69 37,500,000 37,500,000
Heller Financial
12/20/1999 5.47 15,000,000 15,000,000
12/21/1999 5.47 20,000,000 20,000,000
==========================================================================================
92,500,000
4.39 INSURANCE
American General
12/14/1999 5.47 17,000,000 17,000,000
12/15/1999 5.47 17,000,000 17,000,000
==========================================================================================
34,000,000
15.58 INVESTMENT BANK/BROKER FIRM
Bear Stearns, 2/7/2000 6.19 40,000,000 39,543,935
Merrill Lynch, 12/3/1999 5.69 35,000,000 34,989,099
Morgan Stanley Dean Witter & Co
1/28/2000 6.20 4,300,000 4,258,063
2/3/2000 6.13 18,000,000 17,808,537
2/3/2000 6.10 24,350,000 24,092,230
==========================================================================================
120,691,864
4.71 MACHINERY
Deere & Co
12/7/1999 5.28 11,500,000 11,500,000
12/20/1999 5.29 5,000,000 5,000,000
2/9/2000 5.96 20,000,000 20,000,000
==========================================================================================
36,500,000
4.51 MANUFACTURING
Textron Financial
12/6/1999 5.64 20,000,000 19,984,550
12/8/1999 5.79 15,000,000 14,983,370
==========================================================================================
34,967,920
4.84 OIL & GAS RELATED
Chevron USA
12/2/1999 5.48 15,000,000 15,000,000
12/8/1999 5.49 10,000,000 10,000,000
12/17/1999 5.57 12,500,000 12,500,000
==========================================================================================
37,500,000
4.62 REAL ESTATE RELATED
Weyerhaeuser Real Estate
12/3/1999 5.36 8,080,000 8,077,626
12/9/1999 5.35 15,000,000 14,982,444
12/13/1999 5.57 12,750,000 12,726,703
==========================================================================================
35,786,773
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
4.39 RETAIL
Sears Roebuck Acceptance, 12/22/1999 5.53 $ 34,000,000 $ 34,000,000
==========================================================================================
2.57 TELEPHONE
GTE Corp, 12/16/1999 5.58 20,000,000 19,954,236
==========================================================================================
TOTAL COMMERCIAL PAPER (Amortized Cost $709,477,688) 709,477,688
==========================================================================================
0.24 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 11/30/1999 due 12/1/1999 at 5.550%,
repurchased at $1,850,285, (Collateralized
by US Treasury Inflationary Index Notes,
due 1/15/2008 at 3.625%, value $1,887,848)
(Cost $1,850,000) 1,850,000 1,850,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Amortized Cost $774,900,941)(a) $ 774,900,941
==========================================================================================
Tax-Free Money Fund
100.00 SHORT-TERM INVESTMENTS
96.83 MUNICIPAL NOTES
0.46 ALABAMA
North Alabama Environmental Impt Auth
(Reynolds Metals Proj) (LOC - Bank of
Nova Scotia), PCR Ref, DATES,
Series 1985, 12/1/2000(b) 3.70 $ 200,000 $ 200,000
==========================================================================================
1.10 ARIZONA
Arizona Hlth Facils Auth (Arizona Vol
Hosp Fedn) (FGIC Insured),
AR Mode Bonds, 1985 Series A,
10/1/2015(b) 3.90 480,000 480,000
==========================================================================================
6.64 CALIFORNIA
Los Angeles Regl Airports Impt,
California (American Airlines/
Los Angeles Intl Airport)
(LOC - Wachovia Bank), AR, Facils
Sublease FDR, Issue 1984
Series C, 12/1/2024(b) 3.70 800,000 800,000
Series E, 12/1/2024(b) 3.70 1,600,000 1,600,000
Series G, 12/1/2024(b) 3.70 500,000 500,000
==========================================================================================
2,900,000
1.49 COLORADO
Beaver Creek Metro Dist, Colorado
(Eagle Cnty) (MBIA Insured), FR,
Taxable Gen Oblig Ref, Series 1995,
12/1/1999 3.65 150,000 150,000
Colorado Student Oblig Auth (AMBAC
Insured), AR, Sr Lien Student Ln Rev,
1999 Series A-1, 9/1/2002(b)(c) 3.85 500,000 500,000
==========================================================================================
650,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
0.33 DISTRICT OF COLUMBIA
District of Columbia (Washington D.C.)
(Howard University Issue), FR,
University Rev,
Series 1990A, 10/1/2020(b) 3.95 $ 140,000 $ 146,449
==========================================================================================
2.66 FLORIDA
Dade Cnty School Dist, Florida (AMBAC
Insured), FR, Gen Oblig Ref School,
Series 1993, 7/15/2000 3.60 250,000 251,736
St Lucie Cnty, Florida (Savannah Hosp
Proj) (LOC - NationsBank of Georgia),
FRD, IDR, Series 1985, 11/1/2015(b) 3.95 910,000 910,000
==========================================================================================
1,161,736
7.56 GEORGIA
DeKalb Cnty Hosp Auth, Georgia (DeKalb
Med Ctr Proj) (LOC - Trust Co Bank),
AR, RAC, Series 1993B, 9/1/2009(b) 3.95 1,060,000 1,060,000
DeKalb Private Hosp Auth, Georgia
(Egleston Children's Hosp at Emory
Univ Proj) (LOC - Suntrust Bank),
VRD, RAC, Series 1994B, 12/1/2017(b) 3.85 400,000 400,000
Macon-Bibb Cnty Hosp Auth, Georgia
(Med Ctr of Cent Georgia) (LOC - Trust
Co Bank), AR, RAC, Series 1994,
4/1/2007(b) 3.95 1,345,000 1,345,000
Savannah Econ Dev Auth, Georgia (Home
Depot Proj) (LOC - Trust Co Bank),
AR, Exmp Facil Rev, Series 1995B,
8/1/2025(b) 4.00 500,000 500,000
==========================================================================================
3,305,000
2.30 IDAHO
Idaho, FR, TAN, Series 1999, 6/30/2000 3.40 1,000,000 1,004,757
==========================================================================================
4.80 ILLINOIS
Gtr Rockford Airport Auth, Illinois
(Winnebago Cnty) (AMBAC Insured),
FR, Gen Oblig Airport, Series 1998,
1/1/2000 3.30 315,000 316,469
Illinois Dev Fin Auth (6 West Hubbard
Street Proj) (LOC - LaSalle Natl Bank),
F/FR, IDR, Series 1986, 12/1/2016(b) 3.70 855,000 855,000
Illinois Dev Fin Auth (Kindlon Partners
Proj) (LOC - LaSalle Natl Bank), VR,
Indl Proj Rev, Series 1991, 5/1/2006(b) 4.09 500,000 500,000
Plainfield Cmnty Cons School Dist #202,
Illinois (Will & Kendall Cntys)
(FSA Insured), FR, Gen Oblig Ltd,
Series 1998C, 12/30/1999 3.08 225,000 225,438
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
Rockford, Illinois (Winnebago Cnty)
(AMBAC Insured), FR, Gen Oblig Ref,
Series 1993-E, 12/15/1999 3.15 $ 200,000 $ 200,090
==========================================================================================
2,096,997
9.15 INDIANA
Daviess Cnty, Indiana (Perdue Farms/
Shenandoah Valley Farms Facil)
(LOC - Natl Bank of North Carolina),
V/FRD, Econ Dev Rev, 1987 Issue,
9/1/2007(b) 3.70 1,500,000 1,500,000
Indiana Hosp Equip Fing Auth (MBIA
Insured), VR, Rev, Series 1985A,
12/1/2015(b) 3.90 1,000,000 1,000,000
Indiana Muni Pwr Agency (LOC - Toronto-
Dominion Bank), VRD, Pwr Supply System
Ref Rev, 1998 Series A, 1/1/2018(b) 3.80 1,000,000 1,000,000
Newton Cnty, Indiana (Intec Group Proj)
(LOC - LaSalle Natl Bank), A/FR,
Econ Dev Rev, Series 1994, 9/1/2010(b) 4.09 500,000 500,000
==========================================================================================
4,000,000
2.97 IOWA
Iowa Fin Auth (Burlington Med Ctr)
(FSA Insured), FDR, Series 1997,
6/1/2027(b) 3.95 700,000 700,000
Iowa Fin Auth (Wheaton Franciscan Svcs)
(MBIA Insured), VRD, Rev,
Series 1998B, 8/15/2024(b) 3.90 600,000 600,000
==========================================================================================
1,300,000
2.29 KANSAS
Fairway, Kansas (J C Nichols Proj)
(LOC - Prin Mutual Ins Co), FRD,
Indl Rev, Series 1984, 11/1/2014(b) 3.80 500,000 500,000
Spring Hill, Kansas (Abrasive Engr &
Mfg Proj) (LOC - LaSalle Natl Bank),
VR, Indl Rev, Series 1996, 9/1/2016(b) 4.09 500,000 500,000
==========================================================================================
1,000,000
3.46 LOUISIANA
Louisiana Office Facils (MBIA Insured),
FR, Lease Rev Ref, Series 1999B,
3/1/2000 3.49 120,000 120,145
New Orleans, Louisiana
(AMBAC Insured), FR, Drain System,
Series 1998, 12/1/1999 3.20 300,000 300,000
(FSA Insured), FR, Pub Impt,
Issue of 1999, 11/1/2000 3.80 390,000 395,910
(MBIA Insured), FR, Wtr Rev,
Series 1998, 12/1/1999 3.20 240,000 240,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
St. Charles Parish School Brd,
Louisiana (AMBAC Insured), FR,
Sales Tax School, Series 1999,
2/1/2000 3.21 $ 455,000 $ 457,847
==========================================================================================
1,513,902
0.59 MICHIGAN
Beaverton Rural Schools, Michigan
(Gladwin & Clare Cntys) (FGIC
Insured), FR, Gen Oblig Unltd Tax
School Bldg & Site, Series 1996,
5/1/2000 3.20 255,000 259,187
==========================================================================================
4.35 MISSOURI
Columbia, Missouri (LOC - Toronto-
Dominion Bank), VR, Spl Oblig Ins
Reserve, Series 1988A, 6/1/2008(b) 3.85 1,900,000 1,900,000
==========================================================================================
0.80 NEBRASKA
Hamilton Cnty, Nebraska (Iams Co Proj)
(LOC - NationsBank), VR, IDR Ref,
Series 1990, 7/1/2005(b) 3.95 350,000 350,000
==========================================================================================
1.14 NEW MEXICO
New Mexico Hwy Commn (FSA Insured),
ATS, Sub Lien Tax Hwy Rev, Series 1996,
6/15/2011(b) 3.90 500,000 500,000
==========================================================================================
4.35 NEW YORK
Monroe Cnty Indl Dev Agency, New York
(Ron Ink Proj) (LOC - LaSalle Natl
Bank), VR, IDR, Series 1996,
7/1/2013(b) 4.47 1,400,000 1,400,000
New York Muni Wtr Fin Auth, New York
(FGIC Insured), AR, Wtr & Swr System
Rev, Fiscal 1994 Series C,
6/15/2023(b) 3.80 500,000 500,000
==========================================================================================
1,900,000
3.43 NORTH CAROLINA
North Carolina Edl Facils Fin Agency
(Bowman Gray School of Medicine Proj)
(LOC - Wachovia Bank), VR, Rev,
Series 1990, 9/1/2020(b) 3.85 500,000 500,000
Wake Cnty Indl Facils & Pollution Ctl
Fing Auth, North Carolina (Carolina Pwr
& Light Proj) (LOC - First Union Natl
Bank), VR, PCR, Series 1985B,
9/1/2015(b) 3.85 1,000,000 1,000,000
==========================================================================================
1,500,000
2.29 OHIO
Hilliard School Dist, Ohio (FGIC
Insured), FR, School Impt Ref,
Series 1992, 12/1/1999 3.40 500,000 500,000
Ohio Pub Facils Commn (MBIA - IBC
Insured), FR, Mental Hlth Cap Facils,
Series II-1993B, 6/1/2000 3.38 500,000 502,107
==========================================================================================
1,002,107
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
5.15 PENNSYLVANIA
Delaware Valley Regl Fin Auth,
Pennsylvania (Bucks, Chester,
Delaware & Montgomery Cntys)
(LOC - Credit Suisse First Boston),
AR, Loc Govt Rev, Series 1985D,
12/1/2020(b) 3.80 $ 1,000,000 $ 1,000,000
Emmaus Gen Auth, Pennsylvania
(Pennsylvania VR Ln Prog)
(FSA Insured), VRD, Series 1996,
12/1/2028(b) 3.90 1,000,000 1,000,000
Pennsylvania Turnpike Commn
(FGIC Insured), FR, Pennsylvania
Turnpike Rev, Series 1992 O,
12/1/1999 3.18 250,000 250,000
==========================================================================================
2,250,000
0.92 SOUTH CAROLINA
Anderson Cnty, South Carolina (Belton
Inds Proj) (LOC - NationsBank of North
Carolina), AR, Indl Rev, Series 1991A,
7/1/2004(b) 4.05 400,000 400,000
==========================================================================================
1.83 TENNESSEE
Greeneville Hlth & Edl Facils Brd,
Tennessee (Laughlin Mem Hosp Proj)
(LOC - NationsBank of Tennessee), VRD,
Rev, Series 1992, 10/1/2014(b) 3.90 800,000 800,000
==========================================================================================
13.99 TEXAS
Atlanta, Texas (Cass Cnty) (AMBAC Insured),
FR, Ctfs of Oblig, Series 1999,
2/15/2000 3.35 150,000 150,728
Boerne Indpt School Dist, Texas
(Kendall Cnty) (PSFG Insured), FR,
Unltd Tax School Bldg & Ref,
Series 1999, 2/1/2000 3.25 440,000 440,542
Brownsville, Texas (FGIC Insured), FR,
Combination Tax & Rev Ctfs of Oblig,
Series 1999-A, 2/15/2000 3.48 175,000 175,925
Center Indpt School Dist, Texas
(Shelby Cnty) (PSFG Insured), FR,
Unltd Tax School Bldg & Ref,
Series 1999, 2/15/2000 3.24 255,000 255,000
Grandbury Indpt School Dist, Texas
(Hood, Johnson, Parker & Somervell
Cntys) (PSF - GTD Insured), FR, Unltd
Tax School Bldg & Ref, Series 1999,
8/1/2000 3.50 470,000 474,570
Harlingen Cons Indpt School Dist, Texas
(Cameron Cnty) (PSF - GTD Insured),
FR, Unltd Tax School Bldg,
Series 1999, 8/15/2000 3.86 500,000 512,337
Hunt Mem Hosp Dist, Texas (FSA Insured),
VR, Rev, Series 1998,
8/15/2017(b) 3.95 500,000 500,000
Lone Star Airport Impt Auth, Texas
(American Airlines Proj) (LOC - Royal
Bank of Canada), V/FRD, Multiple Mode
Rev
1984 Series B-1, 12/1/2014(b) 3.70 400,000 400,000
1984 Series B-3, 12/1/2014(b) 3.70 300,000 300,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
1984 Series B-4, 12/1/2014(b) 3.70 $ 200,000 $ 200,000
Longview, Texas (Gregg & Harrison Cntys)
(FSA Insured), FR,Gen Oblig,
Series 1999, 6/1/2000(d) 3.85 400,000 405,444
Mesquite, Texas (Dallas Cnty)
(FGIC Insured), FR, Gen Oblig Ref
& Impt, Series 1992, 2/15/2000 3.25 285,000 286,293
Plano Indpt School Dist, Texas
(Collin Cnty) (PSFG Insured), FR,
Unltd Tax School Bldg, Series 1999,
2/15/2000 3.34 840,000 842,789
Sheldon Indpt School Dist, Texas
(Harris Cnty) (PSFG Insured), FR,
Unltd Tax School Bldg, Series 1999,
2/15/2000 3.22 150,000 150,469
Texas, FR, TAN, Rev, Series 1999A,
8/31/2000 3.70 500,000 502,894
Texas Natl Research Lab Commn
(Superconducting Super Collider
Proj), FR, Gen Oblig, Series 1990,
4/1/2005(b) 3.68 500,000 515,449
==========================================================================================
6,112,440
0.69 UTAH
Tremonton, Utah (Box Elder Cnty),
(La-Z-Boy Chair Proj)
(LOC - NBD Bank), VRD, IDR,
Series 1990, 6/1/2000 4.42 300,000 300,000
==========================================================================================
0.97 VIRGINIA
Richmond, Virginia, FR, Gen Oblig
Pub Impt, Series 1990A, 1/15/2020(b) 3.15 415,000 425,181
==========================================================================================
5.66 WASHINGTON
Lind School Dist #158, Washington
(Adams Cnty) (AMBAC Insured), FR,
Unltd Tax Gen Oblig, Series 1994,
12/1/1999 3.65 155,000 155,000
Seattle Metro Muni, Washington
(MBIA Insured), FR, Swr Rev,
Series T, 1/1/2031(b) 3.10 220,000 225,077
Vancouver, Washington (FSA Insured),
FR, Ltd Tax Gen Oblig, Series 1998A,
12/1/1999 3.10 285,000 285,000
Washington Pub Pwr Supply System
(Nuclear Proj #1), FR, Ref Rev,
Series 1989B, 7/1/2015(b) 3.18 870,000 890,289
(Nuclear Proj #1) (MBIA-IBC Insured),
FR, Ref Rev, Series 1993A,
7/1/2000 3.80 500,000 503,673
(Nuclear Proj #2), FR, Ref Rev,
Series 1990A, 7/1/2004(b) 3.60 400,000 416,689
==========================================================================================
2,475,728
1.80 WISCONSIN
Wisconsin, FR, Gen Oblig,
Series 1991D, 5/1/2012(b) 3.85 770,000 786,568
==========================================================================================
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
<S> <C> <C> <C> <C>
3.66 WYOMING
Lincoln Cnty, Wyoming (Exxon Proj),
DATES, PCR, Series 1984D,
11/1/2014(b) 3.60 $ 1,600,000 $ 1,600,000
==========================================================================================
TOTAL MUNICIPAL NOTES (Amortized Cost $42,320,052) 42,320,052
==========================================================================================
3.17 COMMERCIAL PAPER
3.17 FINANCIAL
Associates Corp of North America,
12/1/1999 (Cost $1,384,000) 5.69 1,384,000 1,384,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Amortized Cost $43,704,052)(a) $ 43,704,052
==========================================================================================
U.S. GOVERNMENT MONEY FUND
100.00 SHORT-TERM INVESTMENTS
84.77 US GOVERNMENT AGENCY OBLIGATIONS
Fannie Mae
1/19/2000 5.65 $ 7,500,000 $ 7,443,527
1/20/2000 5.69 20,000,000 19,845,439
1/25/2000 5.69 5,000,000 4,957,529
Freddie Mac
12/15/1999 5.50 10,000,000 9,978,959
12/20/1999 5.57 10,000,000 9,971,073
12/30/1999 5.51 7,500,000 7,467,316
12/30/1999 5.50 20,000,000 19,912,992
==========================================================================================
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Amortized Cost $79,576,835) 79,576,835
==========================================================================================
15.23 REPURCHASE AGREEMENTS
Repurchase Agreement with State
Street dated 11/30/1999 due
12/1/1999 at 5.550%,
repurchased at $14,297,204
(Collaterized by US Treasury
Inflationary Index Notes,
due 1/15/2008 at 3.625%,
value $14,585,150)
(Cost $14,295,000) 14,295,000 14,295,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Amortized Cost $93,871,835)(a) $ 93,871,835
==========================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
The following abbreviations may be used in portfolio descriptions:
<S> <C> <C> <C> <C> <C>
A/FR(e) -- Adjustable/Fixed Rate IDR -- Industrial Development Revenue
AMBAC -- American Municipal Bond Assurance Corporation LOC -- Letter of Credit
AR(e) -- Adjustable Rate MBIA -- Municipal Bond Investors Assurance Corporation
ATS(e) -- Adjustable Tender Securities PCR -- Pollution Control Revenue
DATES(e) -- Daily Adjustable Tax-Exempt Securities PSGF -- Permanent School Fund Guarantee Pro-
gram
FDR(e) -- Flexible Demand Revenue RAC -- Revenue Anticipation Certificates
FGIC -- Financial Guaranty Insurance Company TAN -- Tax Anticipation Notes
FNMA -- Fannie Mae TECP -- Tax-Exempt Commercial Paper
F/FR -- Floating/Fixed Rate V/FRD(e) -- Variable/Fixed Rate Demand
FR -- Fixed Rate VR(e) -- Variable Rate
FRD(e) -- Floating Rate Demand VRD(e) -- Variable Rate Demand
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
</TABLE>
(a) Also represents cost for income tax purposes.
(b) 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.
(c) Security has been designated as collateral for when-issued ("W/I")
securities.
(d) Security is a W/I security.
(e) Rate is subject to change. Rate shown reflects current rate.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO Money Market Funds, Inc.
NOVEMBER 30, 1999
UNAUDITED
CASH TAX-FREE
RESERVES MONEY
FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 774,900,941 $ 43,704,052
================================================================================
At Value(a) $ 774,900,941 $ 43,704,052
Receivables:
Fund Shares Sold 72,166,596 1,257,172
Interest 963,469 396,320
Prepaid Expenses and Other Assets 244,561 87,872
================================================================================
TOTAL ASSETS 848,275,567 45,445,416
================================================================================
LIABILITIES
Payables:
Custodian 802,221 1,086
Distributions to Shareholders 58,510 2,872
Investment Securities Purchased 0 1,307,077
Fund Shares Repurchased 12,203,462 1,477,730
Accrued Expenses and Other Payables 132,950 15,925
================================================================================
TOTAL LIABILITIES 13,197,143 2,804,690
================================================================================
NET ASSETS AT VALUE $ 835,078,424 $ 42,640,726
================================================================================
Shares Outstanding(b) 835,078,424 42,640,726
NET ASSET VALUE, Offering
and Redemption
Price per Share $ 1.00 $ 1.00
================================================================================
(a) Investment securities at cost and value at November 30, 1999 includes a
repurchase agreement of $1,850,000 for Cash Reserves Fund.
(b) The Fund has ten billion authorized shares of common stock, par value $0.01
per share. Of such shares, five billion and one billion have been allocated
to Cash Reserves and Tax-Free Money Funds, respectively. Paid-in capital was
$835,078,424 and $42,640,726 for Cash Reserves Fund and Tax-Free Money Fund,
respectively.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO Money Market Funds, Inc.
NOVEMBER 30, 1999
UNAUDITED
U.S. GOVERNMENT
MONEY
FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 93,871,835
================================================================================
At Value(a) $ 93,871,835
Cash 1,447
Receivables:
Fund Shares Sold 3,491,994
Interest 2,204
Prepaid Expenses and Other Assets 169,940
================================================================================
TOTAL ASSETS 97,537,420
================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 11,858
Fund Shares Repurchased 536,964
Accrued Expenses and Other Payables 19,360
================================================================================
TOTAL LIABILITIES 568,182
================================================================================
NET ASSETS AT VALUE $ 96,969,238
================================================================================
Shares Outstanding(b) 96,969,238
NET ASSET VALUE, Offering and Redemption
Price per Share $ 1.00
================================================================================
(a) Investment securities at cost and value at November 30, 1999 includes a
repurchase agreement of $14,295,000 for U.S. Government Money Fund.
(b) The Fund has ten billion authorized shares of common stock, par value $0.01
per share. Of such shares, one billion has been allocated to U.S. Government
Money Fund. Paid-in-capital for U.S. Government Money Fund was $96,969,238.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO Money Market Funds, Inc.
SIX MONTHS ENDED NOVEMBER 30, 1999
UNAUDITED
CASH TAX-FREE
RESERVES MONEY
FUND FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST INCOME $ 21,300,027 $ 716,859
===============================================================================
EXPENSES
Investment Advisory Fees 1,606,054 104,733
Transfer Agent Fees 1,565,952 63,097
Administrative Fees 185,908 14,426
Custodian Fees and Expenses 56,295 5,466
Directors' Fees and Expenses 24,351 5,106
Professional Fees and Expenses 22,241 10,956
Registration Fees and Expenses 67,066 16,393
Reports to Shareholders 187,342 10,376
Other Expenses 10,879 3,588
===============================================================================
TOTAL EXPENSES 3,726,088 234,141
Fees and Expenses Absorbed by
Investment Adviser (78,240) (52,516)
Fees and Expenses Paid Indirectly (27,896) (3,711)
===============================================================================
NET EXPENSES 3,619,952 177,914
===============================================================================
NET INVESTMENT INCOME AND NET
INCREASE IN NET ASSETS
FROM OPERATIONS $ 17,680,075 $ 538,945
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO Money Market Funds, Inc.
SIX MONTHS ENDED NOVEMBER 30, 1999
UNAUDITED
U.S. GOVERNMENT
MONEY
FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST INCOME $ 2,260,313
================================================================================
EXPENSES
Investment Advisory Fees 218,001
Transfer Agent Fees 194,311
Administrative Fees 24,620
Custodian Fees and Expenses 7,905
Directors' Fees and Expenses 6,355
Professional Fees and Expenses 7,634
Registration Fees and Expenses 21,638
Reports to Shareholders 21,373
Other Expenses 1,501
================================================================================
TOTAL EXPENSES 503,338
Fees and Expenses Absorbed by Investment Adviser (126,590)
Fees and Expenses Paid Indirectly (4,776)
================================================================================
NET EXPENSES 371,972
================================================================================
NET INVESTMENT INCOME AND NET INCREASE IN
NET ASSETS FROM OPERATIONS $ 1,888,341
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Cash Reserves Fund
SIX MONTHS YEAR
ENDED ENDED
NOVEMBER 30 MAY 31
- --------------------------------------------------------------------------------
1999 1999
UNAUDITED
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $ 17,680,075 $ 34,237,500
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $ 3,283,822,204 $ 7,899,644,244
Reinvestment of Distributions 15,818,236 30,035,522
================================================================================
3,299,640,440 7,929,679,766
Amounts Paid for Repurchases of Shares (3,278,719,911) (7,882,192,040)
================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 20,920,529 47,487,726
NET ASSETS
Beginning of Period 814,157,895 766,670,169
================================================================================
End of Period $ 835,078,424 $ 814,157,895
================================================================================
--------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 3,283,822,204 7,899,644,244
Shares Issued from Reinvestment
of Distributions 15,818,236 30,035,522
================================================================================
3,299,640,440 7,929,679,766
Shares Repurchased (3,278,719,911) (7,882,192,040)
================================================================================
NET INCREASE IN FUND SHARES 20,920,529 47,487,726
================================================================================
See Notes to Financial Statements
<PAGE>
STATMENT OF CHANGES IN NET ASSETS (CONTINUED)
Tax-Free Money Fund
SIX MONTHS YEAR
ENDED ENDED
NOVEMBER 30 MAY 31
- --------------------------------------------------------------------------------
1999 1999
UNAUDITED
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $ 538,945 $ 1,288,977
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $ 91,484,188 $ 277,721,719
Reinvestment of Distributions 474,883 1,149,703
================================================================================
91,959,071 278,871,422
Amounts Paid for Repurchases of Shares (100,015,725) (282,975,166)
================================================================================
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (8,056,654) (4,103,744)
NET ASSETS
Beginning of Period 50,697,380 54,801,124
================================================================================
End of Period $ 42,640,726 $ 50,697,380
================================================================================
--------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 91,484,188 277,721,719
Shares Issued from Reinvestment
of Distributions 474,883 1,149,703
================================================================================
91,959,071 278,871,422
Shares Repurchased (100,015,725) (282,975,166)
================================================================================
NET DECREASE IN FUND SHARES (8,056,654) (4,103,744)
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
U.S. Government Money Fund
SIX MONTHS YEAR
ENDED ENDED
NOVEMBER 30 MAY 31
- --------------------------------------------------------------------------------
1999 1999
UNAUDITED
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $ 1,888,341 $ 3,853,464
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $ 300,317,084 $ 1,097,656,947
Reinvestment of Distributions 1,668,444 3,244,029
================================================================================
301,985,528 1,100,900,976
Amounts Paid for Repurchases of Shares (296,525,423) (1,083,310,126)
================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 5,460,105 17,590,850
NET ASSETS
Beginning of Period 91,509,133 73,918,283
================================================================================
End of Period $ 96,969,238 $ 91,509,133
================================================================================
--------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 300,317,084 1,097,656,947
Shares Issued from Reinvestment
of Distributions 1,668,444 3,244,029
================================================================================
301,985,528 1,100,900,976
Shares Repurchased (296,525,423) (1,083,310,126)
================================================================================
NET INCREASE IN FUND SHARES 5,460,105 17,590,850
================================================================================
See Notes to Financial Statements
<PAGE>
INVESCO NOTES TO FINANCIAL STATEMENTS - Invesco Money
Market Funds, Inc.
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Money Market
Funds, Inc. is incorporated in Maryland and presently consists of three separate
Funds: Cash Reserves Fund, Tax-Free Money Fund and U.S. Government Money Fund
(individually the "Fund" and collectively, the "Funds"). The investment
objectives 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 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 income 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 under procedures
established 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. In the event of default on the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the other party to the agreement, realization and/or retention of
the collateral or proceeds may be subject to legal proceedings.
C. WHEN-ISSUED SECURITIES -- When-issued securities held by the Fund are fully
collateralized by other securities which are notated in the Statement of
Investment Securities. Such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value equals
or exceeds the current market value of the when-issued securities.
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, original issue discount and amortized
premium, 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.
Net capital loss carryovers utilized in 1999 by U.S. Government Money Fund
amounted to $150.
<PAGE>
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- All of the Fund's net
investment income is distributed to shareholders by dividends declared daily and
paid monthly. Income dividends are reinvested 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 Funds' investment adviser. As compensation for its
services to each 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.
IFG receives a transfer agent fee from each Fund at an annual rate of $27.00 per
shareholder account, or, where applicable, per participant in an omnibus
account, per year. 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.
In accordance with an Administrative Services Agreement, each Fund pays IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG has voluntarily agreed to absorb certain fees and expenses incurred by each
Fund.
NOTE 3 -- TRANSACTIONS WITH AFFILIATES. Certain of the Funds' officers and
directors are also officers and directors of IFG.
Each Fund has adopted an unfunded defined benefit deferred compensation 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 50% of the sum of the
retainer fee at the time of retirement, plus the annual meeting attendance fees.
Pension expenses for the six months ended November 30, 1999, 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:
UNFUNDED
PENSION ACCRUED PENSION
FUND EXPENSES PENSION COSTS LIABILITY
- --------------------------------------------------------------------------------
Cash Reserves Fund $ 7,329 $ 42,570 $ 104,001
Tax-Free Money Fund 442 3,665 8,667
U.S. Government Money Fund 917 4,799 11,798
The independent directors have contributed to a deferred fee agreement, pursuant
to which they have deferred receipt of a portion of the compensation which they
would otherwise have been paid as directors of selected INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO Funds,
excluding the INVESCO Variable Investment Funds.
<PAGE>
FINANCIAL HIGHLIGHTS
Cash Reserves Fund
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
NOVEMBER 30 YEAR ENDED MAY 31
- -------------------------------------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
UNAUDITED
<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 0.02 0.04 0.05 0.05 0.05 0.05
=================================================================================================
Net Asset Value-- End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================================================
TOTAL RETURN 2.22%(a) 4.45% 4.82% 4.69% 5.01% 4.76%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 835,078 $ 814,158 $ 766,670 $ 661,648 $ 587,277 $ 644,341
Ratio of Expenses to Average
Net Assets(b) 0.45%(a)(c) 0.90%(c) 0.91%(c) 0.86%(c) 0.87%(c) 0.75%
Ratio of Net Investment Income
to Average Net Assets(b) 2.20%(a) 4.36% 4.76% 4.62% 4.86% 4.65%
</TABLE>
(a) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(b) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended November 30, 1999 and for the years ended May 31, 1999, 1998,
1997, 1996 and 1995. If such expenses had not been absorbed, ratio of
expenses to average net assets would have been 0.46%, 0.91%, 0.93%, 0.92%,
0.92% and 0.85%, respectively, and ratio of net investment income to average
net assets would have been 2.19%, 4.35%, 4.74%, 4.56%, 4.81%, and 4.55%,
respectively.
(c) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
Tax-Free Money Fund
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
NOVEMBER 30 YEAR ENDED MAY 31
- -------------------------------------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
UNAUDITED
<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 0.01 0.03 0.03 0.03 0.03 0.03
=================================================================================================
Net Asset Value -- End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================================================
TOTAL RETURN 1.30%(a) 2.63% 3.03% 2.90% 3.08% 2.86%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 42,641 $ 50,697 $ 54,801 $ 47,577 $ 51,649 $ 58,780
Ratio of Expenses to Average
Net Assets(b) 0.43%(a)(c) 0.77%(c) 0.76%(c) 0.76%(c) 0.77%(c) 0.75%
Ratio of Net Investment Income
to Average Net Assets(b) 1.29%(a) 2.61% 3.01% 2.86% 3.03% 2.77%
</TABLE>
(a) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(b) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended November 30, 1999 and for the years ended May 31, 1999, 1998,
1997, 1996 and 1995. If such expenses had not been absorbed, ratio of
expenses to average net assets would have been 0.56%, 1.02%, 1.06%, 1.01%,
1.05% and 1.00%, respectively, and ratio of net investment income to average
net assets would have been 1.16%, 2.36%, 2.71%, 2.61%, 2.75% and 2.52%,
respectively.
(c) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
U.S. Government Money Fund
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
NOVEMBER 30 YEAR ENDED MAY 31
- -------------------------------------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
UNAUDITED
<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 0.02 0.04 0.05 0.04 0.05 0.05
=================================================================================================
Net Asset Value -- End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================================================
TOTAL RETURN 2.18%(a) 4.36% 4.74% 4.57% 4.90% 4.66%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 96,969 $ 91,509 $ 73,918 $ 66,451 $ 79,392 $ 60,843
Ratio of Expenses to Average
Net Assets(b) 0.43%(a)(c) 0.86%(c) 0.87%(c) 0.86%(c) 0.87%(c) 0.75%
Ratio of Net Investment Income
to Average Net Assets(b) 2.17%(a) 4.28% 4.72% 4.51% 4.78% 4.55%
</TABLE>
(a) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(b) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended November 30, 1999 and for the years ended May 31, 1999, 1998,
1997, 1996 and 1995. If such expenses had not been absorbed, ratio of
expenses to average net assets would have been 0.58%, 1.08%, 1.12%, 1.06%,
1.05% and 1.10%, respectively, and ratio of net investment income to average
net assets would have been 2.02%, 4.06%, 4.47%, 4.31%, 4.59%, and 4.20%,
respectively.
(c) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
<PAGE>
INVESCO Family of Funds
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
Stock
Growth & Income 21 IVGIX Gro&Inc
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
INVESCO Endeavor 61 IVENX Endeavor
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund-Class II 23 ISPIX SP500II
- --------------------------------------------------------------------------------
Bond
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond 35 FTIFX TxFreeBd
(formerly Tax-Free Long-Term Bond)
- --------------------------------------------------------------------------------
Combination Stock & Bond
Equity Income (formerly 15 FIIIX EquityInc
Industrial Income)
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology-Class II 55 FTCHX Tech
Telecommunications (formerly 39 ISWCX Telecomm
Worldwide Communications)
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
International
International Blue Chip 09 IIBCX ItlBlChp
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
Pacific Basin 54 FPBSX PcBas
- --------------------------------------------------------------------------------
Money Market
U.S. Government Money 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money 40 FFRXX InvTaxFree
Treasurer's Money Market Reserve 96 IMRXX INVESCOMMR
Treasurer's Tax-Exempt Reserve 95 ITTXX INVESCOTTE
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT
FEES AND EXPENSES, PLEASE CALL US AT 1-800-525-8085 OR VISIT OUR WEB SITE FOR A
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
YOU SHOULD
KNOW WHAT
INVESCO KNOWS (TM)
[INVESCO ICON] INVESCO(R)
We're easy to stay in touch with:
Investor Services: 1-800-525-8085
PAL(R), your personal account line: 1-800-424-8085
On the World Wide Web: www.invesco.com
In Denver, visit one of our convenient Investor Centers:
Cherry Creek, 3003 East Third Avenue, Suite 1
Denver Tech Center, 7800 East Union Avenue, Lobby Level
INVESCO Distributors, Inc.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied
by a current prospectus.
SMF 9047 1/00
