KNOWLEDGE * DISCIPLINE * SERVICE * CHOICE
- ----------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS(TM)
- ----------------------------------------------
INVESCO STOCK FUNDS
DYNAMICS
INVESCO ENDEAVOR
GROWTH & INCOME
[INVESCO ICON]
INVESCO
ANNUAL REPORT / April 30, 1999
<PAGE>
"OUR GOAL GOING FORWARD WILL BE TO STAY TRUE TO OUR NAME BY ALLOWING OUR
SHAREHOLDERS TO PARTICIPATE IN THE MOST DYNAMIC INDUSTRIES, WHILE STAYING TRUE
TO OUR GROWTH DISCIPLINE, WHICH FOCUSES ONLY ON REAL RESULTS." (PAGE 4)
"OUR PLAN WAS TO CREATE A FUND USING THE BEST IDEAS OF THE INVESCO GROWTH TEAM,
AND WE ARE PLEASED THAT THE PROCESS APPEARS TO BE WORKING." (PAGE 5)
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Dynamics Fund to the value of a $10,000
investment in the S&P MidCap 400 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the ten year period ended 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Endeavor Fund to the value of a
$10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the
period from inception (10/98) through 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Growth & Income Fund to the value of a
$10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the
period from inception (07/98) through 4/30/99.
TOTAL RETURN,
PERIODS ENDED 4/30/99(1)
6 months 1 year 5 years* 10 years* Page number
DYNAMICS 39.63% 20.83% 23.37% 20.65% 3
----------------------------------------------------------------------
INVESCO ENDEAVOR 63.20% (cumulative since inception 10/28/98) 5
GROWTH & INCOME 53.07% (cumulative since inception 7/1/98) 6
*Average Annualized
The line graphs illustrate the value of a $10,000 investment, plus reinvested
dividends and capital gain distributions, for the 10-year period or since
inception through 4/30/99. The chart and other total return figures cited
reflect the funds' operating expenses, but the index does not have expenses,
which would, of course, have lowered their performance. (Of course, past
performance is not a guarantee of future results.)(1)(2)
<PAGE>
DYNAMICS FUND
Your Fund's Performance: A Report From The Manager
- --------------------------------------------------------------------------------
Dear Shareholder:
The fund has enjoyed very solid results over the past year. We are pleased
with this performance on an absolute basis, but also on a relative one, as we
avoided the pitfalls that plagued many funds such as ours that do not invest in
the market's largest companies. While staying true to our "mid-cap" focus on
companies with market valuations of between roughly $1 and $10 billion, we were
able to find many medium-capitalization growth companies that met both their
earnings and growth targets--two criteria the market has demanded following the
financial turmoil of the summer of 1998.
For the year ended April 30, 1999, the value of your shares rose 20.83%.
This slightly lagged the return of the large-company stocks on S&P 500 over the
same period, which rose 21.83%, but it easily surpassed that of the S&P Mid-Cap
400, which rose 6.43%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
The fund enjoyed many of its best results in areas of the economy we
consider the proper hunting grounds of a growth-oriented portfolio such as ours.
These included technology, health care, and financial services, as well as
consumer industries such as media, communications, recreation, and retailers.
For each of these growth sectors, we perceive fundamental demographic, cultural,
or other trends channeling a greater proportion of the nation's wealth to their
products.
Recently, based largely on an improving world financial situation,
investors have begun to broaden their focus away from the largest, favored
companies--the new "Nifty Fifty" (or even "Twenty"), as some refer to the group.
Instead, investors have begun to pay more attention to smaller firms, which had
lagged for some time, and to firms with lower price-to-earnings ratios.
We are optimistic that this trend will present a new series of
opportunities for our fund. We focus on companies large enough to have proved
their competitive staying power, yet which promise many years of further growth.
As investors become more comfortable with the domestic and world economic
situations, they may continue to turn toward these companies.
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER IS LEAD MANAGER OF INVESCO DYNAMICS FUND. HE
ALSO LEADS INVESCO'S GROWTH INVESTMENT MANAGEMENT TEAM. PRIOR TO JOINING
INVESCO, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 13 YEARS, WHERE
HE WAS AN ANALYST AND PORTFOLIO MANAGER. HE HOLDS A MBA FROM THE UNIVERSITY OF
MISSOURI (ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A CHARTERED
FINANCIAL ANALYST.
THOMAS R. WALD, CFA
VICE PRESIDENT TOM WALD CO-MANAGES INVESCO DYNAMICS FUND. TOM BEGAN HIS
INVESTMENT CAREER IN 1988. PRIOR TO JOINING INVESCO, HE WAS THE SENIOR HEALTH
CARE ANALYST AT MUNDER CAPITAL MANAGEMENT IN BIRMINGHAM, MICHIGAN. TOM HOLDS A
MBA FROM THE WHARTON SCHOOL, UNIVERSITY OF PENNSYLVANIA, AND A BA FROM TULANE
UNIVERSITY. HE IS ALSO A CHARTERED FINANCIAL ANALYST.
<PAGE>
Of course, other scenarios are possible. Investor sentiment could turn broadly
negative or economic growth might stagnate. It is for this reason that we have
attempted to build the portfolio in part around growing companies that provide
predictable, consistent earnings. Health care and radio stocks, for example, are
relatively immune to economic problems, and we own leading firms in both
industries.
Recently, much attention has focused on the idea that the market has entered a
"new paradigm" in which the old rules do not apply. We tend to differ.
Ultimately, we believe, stock performance is a function of earnings, a rule that
applies to the Internet as much as it does to the energy industry. Our goal
going forward will be to stay true to our name by allowing our shareholders to
participate in the most dynamic industries, while staying true to our growth
discipline, which focuses only on real results.
/s/ Timothy J. Miller /s/ Thomas R. Wald
- --------------------- -------------------
Timothy J. Miller Thomas R. Wald
Senior Vice President Vice President
<PAGE>
INVESCO ENDEAVOR FUND
Your Fund's Performance: A Report From The Manager
- --------------------------------------------------------------------------------
Dear Shareholder:
We write this first letter to our shareholders with some gratification about our
results, to be sure, but with a greater degree of satisfaction in the process
behind INVESCO Endeavor Fund. Our plan was to create a fund using the best ideas
of the INVESCO Growth Team, and we are pleased that this strategy appears to be
working. While we are aware that the remarkable returns we have enjoyed over the
past six months are unlikely to be the norm in the future, we are confident in
our strategy of investing across the capitalization spectrum.
Since our inception at the end of October 1998, the value of your shares rose
63.20%. This dramatically surpassed the return of the S&P 500 over the same
period, which rose 22.31%. (Of course, past performance is not a guarantee of
future results.)(1),(2)
We achieved these returns through no special alchemy, but simply through using
INVESCO's growth discipline in its purest form. Our ability to concentrate this
fund's holdings in our best stock picks heightened the impact of our successful
investments. In addition, because the scope of our research is particularly wide
in INVESCO Endeavor Fund, we get the chance to examine more companies before
making our choices.
Another important determinant of our performance going forward will be our
ability to move along the capitalization spectrum. Throughout most of the last
six months, investors favored large-capitalization stocks, and we maintained the
majority of our holdings in these companies. In April, however, the tide turned
somewhat, and small- and mid-cap stocks began to perform better on a relative
basis. Because we anticipate the continuation of this trend, we have adjusted
the portfolio, mainly to increase our exposure to medium-sized growth companies.
While INVESCO Endeavor is a new fund, we believe it best represents a blend of
the old and the new in investment management. On the one hand, it is new in that
it targets aggressive companies in leading sectors such as technology. On the
other, however, it is managed in a traditional manner--seeking out the best
stocks wherever they may be found.
With an effective process in place, we look forward optimistically. Although we
should stress once more that our recent results are unlikely to continue
indefinitely, we believe ample opportunity exists in all types of growing
companies.
/s/ Timothy J. Miller
- ---------------------
Timothy J. Miller
Senior Vice President
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER OVERSEES INVESCO ENDEAVOR FUND. THE FUND DRAWS
ON THE IDEAS OF THE ENTIRE INVESCO GROWTH TEAM, WHICH TIM ALSO HEADS. PRIOR TO
JOINING INVESCO, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 13
YEARS, WHERE HE WAS AN ANALYST AND PORTFOLIO MANAGER. HE HOLDS A MBA FROM THE
UNIVERSITY OF MISSOURI (ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A
CHARTERED FINANCIAL ANALYST.
<PAGE>
GROWTH & INCOME FUND
Your Fund's Performance: A Report From The Manager
- --------------------------------------------------------------------------------
Dear Shareholder:
Since the fund's inception last summer, the markets have amazed many investment
professionals. In part, this has been simply because of the dramatic swings of
the major indexes. Additionally, however, market veterans have noted investors'
extreme selectivity, the way in which--over most of this period--they have
rewarded only the firms best positioned to profit from new technologies and
other favorable conditions. Over the past six months, we have benefited largely
because of our holdings in those market leaders.
Since our inception at the beginning of July 1998, the value of your shares rose
53.07%. We are pleased to report this dramatically exceeded the return of the
S&P 500 over the same period, which rose 19.12%. (Of course, past performance is
not a guarantee of future results.)(1),(2)
Our challenge now is to keep open these avenues of growth while preparing for
the inevitable changes in market dynamics. In April, some of these changes were
evident as investors dramatically reversed course and redirected assets into
so-called "value" stocks with low price-to-earnings ratios. In part, this
reflected the opportunites many saw in a rebounding world economy, which
appeared to boost the demand for producers of commodities, industrial machinery,
and other goods. Consequently, the stocks of many high-growth, high-profile
companies suffered.
One approach to dealing with these changes might be to redirect our investments
toward value stocks in slower-growing firms and sectors, or to invest in
companies that are not leaders in their industries. In our analysis, however, we
believe this approach would bring a higher degree of risk than sticking with our
growth discipline. As April showed, substantial profits can be made in buying
companies whose stocks have been bid down excessively--to buy on sale, perhaps.
We have found, however, that it is much more difficult to time these sales than
it is to identify the longer-term trends in the economy. We are much more
comfortable, for example, in anticipating the growth of broadband capacity in
the communications sector over the next several years than we are in forecasting
ore prices over the next several months. Economic and technological trends are
much more predictable, we believe, than short-term price trends.
Seeking to help limit risk, therefore, we have chosen a different strategy, one
best described as a "barbell" approach. On one side of the barbell, we have
maintained a focus on high-growth, higher-risk companies in rapidly growing
industries. To moderate our risk, we have balanced this concentration with
another on the other side of the barbell, one focused on dividend-yielding
stocks in large, established firms. As a result, we have a higher weighting than
other INVESCO growth funds in sectors such as energy and consumer staples.
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TRENT E. MAY, CFA
VICE PRESIDENT TRENT E. MAY IS LEAD MANAGER OF GROWTH & INCOME FUND. HE RECEIVED
A BA FROM THE FLORIDA INSTITUTE OF TECHNOLOGY AND AN MBA FROM ROLLINS COLLEGE.
TRENT BEGAN HIS INVESTMENT CAREER IN 1991, AND JOINED INVESCO IN 1996. HE IS A
CHARTERED FINANCIAL ANALYST.
<PAGE>
It is impossible to insulate the portfolio entirely from market downdrafts, of
course, while still maintaining the opportunity to benefit from the growth of
leading companies. Yet we believe that in the months to come our barbell
approach will serve the often-competing interests of growth and stability.
/s/ Trent May /s/ Fritz Meyer
- -------------- ---------------------------
Trent E. May Frederick R. "Fritz" Meyer
Vice President Vice President
- --------------------------------------------------------------------------------
FUND MANAGEMENT
FREDERICK R. "FRITZ" MEYER
VICE PRESIDENT FRITZ MEYER IS CO-MANAGER FOR INVESCO GROWTH & INCOME FUND. FRITZ
RECEIVED HIS AB FROM DARTMOUTH COLLEGE WITH A DISTINCTION IN ECONOMICS, AND HIS
MBA FROM AMOS TUCK SCHOOL-DARTMOUTH COLLEGE. HE BEGAN HIS INVESTMENT CAREER IN
1979 AND JOINED INVESCO IN 1996. PRIOR TO JOINING INVESCO, FRITZ WAS AN
EXECUTIVE VICE PRESIDENT AND PORTFOLIO MANAGER WITH NELSON, BENSON & ZELLMER,
INC. IN DENVER, COLORADO.
<PAGE>
INVESCO | Annual Report | April 30, 1999
Moving Forward
- --------------------------------------------------------------------------------
MARKET HEADLINES: MAY 1998 TO APRIL 1999
Beyond a doubt, 1998 was the summer of investors' discontent. U.S. markets
dropped dramatically in August after several months of apparent immunity to the
global financial crisis. The proximate cause was the Russian loan default, but
attention soon turned to the growing credit crunch caused by fears that
globalization--recently the focus of so much hope for the American
economy--would instead infect the long-lived American expansion with the "Asian
contagion."
But if the winter of 1997-1998 taught investors one lesson, it was never to
count a good economy down. Low interest rates, strong consumer spending and wage
growth, and a virtually non-existent inflation rate combined to guide the U.S.
markets out of the storms of world financial crisis. To be sure, troublesome
indicators remained: a ballooning trade deficit, sluggish earnings growth for
many large international companies, and a worrisomely low personal savings rate.
Overall, though, the American economy was as robust as it had been in decades.
Economists and market watchers struggled with the happy task of explaining the
continuing strength of the economy's fundamentals. Clearly, interest rate cuts
by an accommodating Federal Reserve Board helped. But many wondered if deeper
forces were at work. Some pointed to the "wealth effect" on consumer spending
caused by healthy portfolio gains from the bull market. Others speculated that
new productive vistas opened by technologies such as the Internet may be playing
a role in helping companies pay higher wages while keeping costs down. Were we
reaping the bounty of a "new economy," optimists wondered?
If we were, the rest of the world appeared trapped in more somber economic
realities. Growth in Western Europe began to slow early in the year as its
companies suffered from declining exports to emerging markets. Japan and the
rest of Asia began crawling out of the hole of financial despair--but while
Asian markets reacted exuberantly, it was clear that the region had far to go.
In Latin America, markets plunged following a new currency crisis in Brazil
before recovering in February.
The world economy could not continue flying on one engine, American financial
officials warned their global counterparts. Indeed, the question remained: Would
the world join in American prosperity, or would the world's largest economy
finally fall prey to slower growth? As new market records were achieved in
April, however, more investors seemed to look forward to smooth flying.
- --------------------------------------------------------------------------------
Since the funds are actively managed, holdings will change over time.
(1)Total return assumes reinvestment of dividends and capital gain distributions
for the periods indicated. Past performance is not a guarantee of future
results. Investment return and principal value will fluctuate so that, when
redeemed, an investor's shares may be worth more or less than when purchased.
(2)The S&P 500 is an unmanaged index of common stocks considered representative
of the broad U.S. stock market, while the S&P MidCap 400 is an unmanaged index
indicative of domestic mid-capitalization stock prices.
<PAGE>
INVESCO | Annual Report | April 30, 1999
Moving Forward
- --------------------------------------------------------------------------------
MOVING FORWARD: A REVIEW & STRATEGY SESSION WITH THE MANAGERS
SOME WORRY THAT GROWTH STOCKS HAVE BECOME TOO PRICEY. IS THAT A CONCERN?
FRITZ MEYER: The answer depends on your time horizon--and in your faith in your
ability to time these things. Certainly, large growth stocks had dramatically
outpaced small-capitalization and value stocks over the last few years. In
retrospect, it is easy to see how some snap-back was probably overdue. But we
see a long-term trend--dating back at least to the late 1980s--in which
globalization, technology, and other forces have rewarded the few select
companies that are able to master the changes. The playing field is getting more
uneven, and growth companies have been coming out on top.
WILL WE END UP WITH A PERMANENT "NIFTY FIFTY" OR "NIFTY TWENTY" LARGE STOCKS
THAT SURGE AHEAD WHILE THE REST OF THE MARKET LANGUISHES?
TRENT MAY: Certainly not, and that is a function of the "creative destruction"
unleashed by these same forces. Technological change and other deep forces alter
the playing field constantly. The challenge for investors is finding the
dominant competitors early enough within the new industries that emerge.
THE PRIMARY EXAMPLE WOULD HAVE TO BE THE INTERNET. HOW DO WE IDENTIFY THE
LEADERS THERE?
TIM MILLER: It is very difficult to do at this point, and that is why we are
treading carefully. Clearly, a company such as America Online matches our
leadership criteria, however. No Internet service provider comes close to them
in size and brand awareness. We first identified them as a mid-cap company, and
we have benefited from the stock's enormous appreciation. Undoubtedly, America
Online has become very expensive, but we still have faith that they are a good
investment--probably no other industry will grow as fast as the Internet over
the next decade, and America Online is at the top of the pyramid.
OPTIMISTS LOOK FOR NEW AREAS OF GROWTH, WHILE PESSIMISTS PREPARE FOR TROUBLES
LURKING AROUND THE CORNER. IS GROWTH INVESTING AT ALL SUITED FOR THE LATTER?
TOM WALD: There are good arguments to be made that, in a recession, you want to
own the few companies that are still producing earnings--and that's part of the
reason why growth investing fluorished last year in the face of global turmoil.
An example of a company we would have faith in, should the American economy
sour, would be Allergan Inc., a pharmaceutical company that makes specialty
treatments for diseases such as glaucoma. Obviously, the need for their products
will be there to some extent, no matter how much the economy slows, and their
global operations allow them to diversify their risks.
WHAT SHOULD INVESTORS KNOW ABOUT THE MANAGEMENT PROCESS FOR INVESCO ENDEAVOR
FUND?
TIM MILLER: First of all, they should know that the fundamentals of our stock
selection are the same as they have been in our other growth funds--we are not
day-trading Internet stocks, for example. The majority of the holdings in
INVESCO Endeavor are in our other growth portfolios as well. All the growth
managers, search our broader holdings and then choose the few stocks that seem
to have the most promise. We buy these for INVESCO Endeavor, and I monitor their
weightings to ensure that the portfolio as a whole fits our vision of where we
think the best opportunities lie. Lately, we have been working down the average
capitalization to take advantage of a movement we see toward smaller-cap stocks.
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
INVESCO Stock Funds, Inc.
April 30, 1999
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
DYNAMICS FUND
EchoStar Communications Class A $46,866,000
Chancellor Media 43,900,000
Tandy Corp 38,152,831
Bausch & Lomb 30,468,750
Providian Financial 30,007,031
AFLAC Inc 29,295,000
Qwest Communications International 29,048,750
AnnTaylor Stores 28,500,000
Charter One Financial 28,437,500
Harrah's Entertainment 28,160,000
INVESCO ENDEAVOR FUND
Altera Corp $ 5,280,030
America Online 5,139,000
Microsoft Corp 2,902,856
Viatel Inc 2,760,000
Providian Financial 2,749,031
Citigroup Inc 2,472,715
Chancellor Media 2,288,288
Applied Materials 1,898,325
NIKE Inc Class B 1,834,531
MetroNet Communications Class B Non-Voting Shrs 1,676,100
GROWTH AND INCOME FUND
Exxon Corp $ 2,148,412
General Electric 2,011,885
Citigroup Inc 1,944,836
Microsoft Corp 1,867,748
Johnson & Johnson 1,843,237
Bristol-Myers Squibb 1,667,244
BankAmerica Corp 1,665,720
Merck & Co 1,636,825
American International Group 1,605,958
Pfizer Inc 1,589,013
Composition of holdings is subject to change.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
INVESCO STOCK FUNDS, INC.
April 30, 1999 SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- -------------------------------------------------------------------------------
DYNAMICS FUND
94.29 COMMON STOCKS
1.73 AEROSPACE & DEFENSE
Alliant Techsystems(a) 181,500 $14,860,312
General Dynamics 283,100 19,887,775
===============================================================================
34,748,087
0.23 AUTO PARTS
O'Reilly Automotive(a) 100,000 4,575,000
===============================================================================
4.87 BANKS
First Tennessee National 468,000 20,182,500
National Commerce Bancorp 620,000 15,500,000
North Fork Bancorp 880,000 19,800,000
Northern Trust 155,000 14,434,375
US Trust 103,000 9,411,625
Zions Bancorp 279,400 18,632,488
===============================================================================
97,960,988
0.49 BIOTECHNOLOGY
MedImmune Inc(a) 100,000 5,512,500
NeXstar Pharmaceuticals(a) 250,000 4,328,125
===============================================================================
9,840,625
6.17 BROADCASTING
Chancellor Media(a) 800,000 43,900,000
Clear Channel Communications(a) 244,700 17,006,650
EchoStar Communications Class A(a) 467,200 46,866,000
Heftel Broadcasting Class A(a) 300,000 16,312,500
===============================================================================
124,085,150
5.07 CABLE
Adelphia Communications Class A(a) 64,600 4,408,950
Cablevision Systems Class A(a) 200,000 15,475,000
Flextech PLC(a) 475,200 6,857,613
Jones Intercable Class A(a) 350,000 16,231,250
NTL Inc(a) 225,000 17,156,250
TCA Cable TV 502,500 25,030,781
USA Networks(a) 450,000 16,818,750
===============================================================================
101,978,594
2.47 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 200,000 9,562,500
Comverse Technology(a) 337,500 21,642,187
Metromedia Fiber Network Class A(a) 220,000 18,535,000
===============================================================================
49,739,687
7.19 COMPUTER RELATED
Acxiom Corp(a) 315,000 7,953,750
Citrix Systems(a) 152,000 6,460,000
Exodus Communications(a) 168,000 15,141,000
Intuit Inc(a) 156,500 13,478,562
Legato Systems(a) 330,000 13,344,375
Lexmark International
Group Class A(a) 61,000 7,533,500
Network Appliance(a) 268,340 13,500,856
Siebel Systems(a) 393,000 15,105,938
Synopsys Inc(a) 407,000 19,179,875
USWeb Corp(a) 279,000 6,260,063
Verio Inc(a) 185,000 13,135,000
Whittman-Hart Inc(a) 480,000 13,560,000
===============================================================================
144,652,919
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
0.26 CONSUMER -- JEWELRY, NOVELTIES & GIFTS
Boyds Collection Ltd(a) 300,000 $5,250,000
===============================================================================
1.64 ELECTRICAL EQUIPMENT
Molex Inc 250,000 8,062,500
Sanmina Corp(a) 375,000 24,890,625
===============================================================================
32,953,125
1.02 ELECTRONICS
Uniphase Corp(a) 169,900 20,621,613
===============================================================================
5.93 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 381,000 27,527,250
Linear Technology 317,000 18,029,375
Maxim Integrated Products(a) 465,000 26,040,000
PMC-Sierra Inc(a) 146,000 13,997,750
Vitesse Semiconductor(a) 322,000 14,912,625
Xilinx Inc(a) 412,000 18,797,500
===============================================================================
119,304,500
0.93 ENTERTAINMENT
SFX Entertainment Class A(a) 302,000 18,648,500
===============================================================================
1.86 EQUIPMENT -- SEMICONDUCTOR
KLA-Tencor Corp(a) 392,000 19,453,000
Teradyne Inc(a) 381,900 18,020,906
===============================================================================
37,473,906
1.49 FINANCIAL
Providian Financial 232,500 30,007,031
===============================================================================
0.26 FOODS
Universal Foods 250,000 5,250,000
===============================================================================
2.45 GAMING
Harrah's Entertainment(a) 1,280,000 28,160,000
Sun International Hotels Ltd(a) 500,000 21,156,250
===============================================================================
49,316,250
2.11 HEALTH CARE DRUGS -- PHARMACEUTICALS
Allergan Inc 305,000 27,411,875
AmeriSource Health Class A(a) 415,420 11,501,941
Watson Pharmaceuticals(a) 85,700 3,470,850
===============================================================================
42,384,666
4.34 HEALTH CARE RELATED
Bard (C R) Inc 360,000 17,640,000
Bausch & Lomb 406,250 30,468,750
Bergen Brunswig Class A 470,000 8,930,000
Biomet Inc 545,000 22,345,000
MedQuist Inc(a) 232,900 7,976,825
===============================================================================
87,360,575
1.02 HOUSEHOLD FURNITURE & APPLIANCES
Maytag Corp 300,000 20,512,500
===============================================================================
2.20 INSURANCE
AFLAC Inc 540,000 29,295,000
Nationwide Financial
Services Class A 324,525 15,049,847
===============================================================================
44,344,847
1.85 INVESTMENT BANK/BROKER FIRM
Legg Mason 541,400 18,881,325
Price (T Rowe) Associates 490,000 18,466,875
===============================================================================
37,348,200
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
1.47 LEISURE TIME
Premier Parks(a) 605,000 $20,910,313
Royal Caribbean Cruises Ltd 235,000 8,680,313
===============================================================================
29,590,626
0.89 OFFICE EQUIPMENT & SUPPLIES
Staples Inc(a) 600,000 18,000,000
===============================================================================
4.47 OIL & GAS RELATED
BJ Services(a) 475,000 12,706,250
Baker Hughes 300,000 8,962,500
Coflexip SA Sponsored ADR
Representing 1/2 Ord Shr 244,500 10,880,250
Cooper Cameron(a) 288,300 11,135,587
Enron Oil & Gas 200,000 3,800,000
Global Industries Ltd(a) 750,000 9,234,375
Nabors Industries(a) 350,000 7,196,875
Noble Drilling(a) 250,000 4,906,250
Santa Fe International 350,000 7,525,000
Weatherford International(a) 405,000 13,719,375
===============================================================================
90,066,462
1.60 PERSONAL CARE
Dial Corp 475,400 16,163,600
Estee Lauder Class A 160,000 16,020,000
===============================================================================
32,183,600
1.39 PHOTOGRAPHY & IMAGING
Gemstar International Group(a) 265,000 27,924,375
===============================================================================
0.92 POLLUTION CONTROL
Republic Services Class A(a) 904,200 18,592,613
===============================================================================
0.89 PUBLISHING
Tribune Co 215,000 17,939,063
===============================================================================
0.91 RAILROADS
Kansas City Southern Industries 309,000 18,404,812
===============================================================================
6.13 RETAIL
Abercrombie & Fitch Class A(a) 101,800 9,683,725
AnnTaylor Stores(a) 600,000 28,500,000
Costco Cos(a) 100,000 8,093,750
Family Dollar Stores 432,500 10,434,062
Intimate Brands 163,600 8,180,000
Meyer (Fred) Inc(a) 374,700 20,280,638
Tandy Corp 526,700 38,152,831
===============================================================================
123,325,006
1.41 SAVINGS & LOAN
Charter One Financial 910,000 28,437,500
===============================================================================
7.54 SERVICES
Apollo Group Class A(a) 250,000 6,187,500
Block (H & R) Inc 345,000 16,603,125
Ceridian Corp(a) 510,000 18,678,750
CIBER Inc(a) 83,500 1,576,062
Harte-Hanks Inc 200,000 5,050,000
ITT Educational Services(a) 199,600 4,902,675
Lamar Advertising Class A(a) 377,900 12,706,888
Omnicom Group 260,000 18,850,000
Outdoor Systems(a) 550,000 13,853,125
Paychex Inc 365,000 18,637,813
Snyder Communications(a) 200,000 5,875,000
VERITAS Software(a) 129,000 9,159,000
WPP Group PLC(a) 2,230,000 19,711,971
===============================================================================
151,791,909
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
2.02 TELECOMMUNICATIONS-- CELLULAR & WIRELESS
Western Wireless Class A(a) 574,000 $23,569,875
WinStar Communications(a) 350,000 17,018,750
===============================================================================
40,588,625
3.19 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp - Liberty Media Group
Class A(a) 339,000 21,653,625
Allegiance Telecom(a) 291,700 13,418,200
Qwest Communications
International(a) 340,000 29,048,750
===============================================================================
64,120,575
4.71 TELEPHONE
Century Telephone Enterprises 371,250 14,942,812
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 350,000 26,731,250
Intermedia Communications(a) 470,800 15,153,875
MetroNet Communications Class B
Non-Voting Shrs(a) 250,000 13,875,000
NEXTLINK Communications Class A(a) 328,000 24,026,000
===============================================================================
94,728,937
0.97 TEXTILE -- APPAREL MANUFACTURING
Jones Apparel Group(a) 590,000 19,470,000
===============================================================================
0.20 TOYS
Hasbro Inc 116,550 3,977,269
===============================================================================
TOTAL COMMON STOCKS (Cost $1,363,632,657) 1,897,498,135
===============================================================================
0.67 PREFERRED STOCKS
0.67 AUTOMOBILES
Porsche AG Non-Voting Pfd
(Cost $10,864,437) 5,500 13,383,700
===============================================================================
5.04 SHORT-TERM INVESTMENTS
4.96 Commercial Paper
4.96 FINANCIAL
Ford Motor Credit,
4.830%, 5/3/1999 $50,000,000 50,000,000
Sears Roebuck Acceptance,
4.880%, 5/5/1999 $50,000,000 50,000,000
===============================================================================
TOTAL COMMERCIAL PAPER (Cost $100,000,000) 100,000,000
===============================================================================
0.08 REPURCHASE AGREEMENTS
Repurchase Agreement with
State Street dated 4/30/1999
due 5/3/1999 at 4.820%,
repurchased at $1,524,612
(Collaterized by US Treasury
Bills, Discount Note, due
10/14/1999 value $1,556,956)
(Cost $1,524,000) $1,524,000 $1,524,000
===============================================================================
TOTAL SHORT-TERM INVESTMENTS
(Cost $101,524,000) 101,524,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,476,021,094)
(Cost for Income Tax
Purposes $1,484,526,096) $2,012,405,835
===============================================================================
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
INVESCO ENDEAVOR FUND
97.15 COMMON STOCKS
1.27 AUTO PARTS
CSK Auto(a) 34,800 $870,000
===============================================================================
1.21 BIOTECHNOLOGY
MedImmune Inc(a) 15,000 826,875
===============================================================================
4.47 BROADCASTING
Broadcast.com Inc(a) 6,000 769,500
Chancellor Media(a) 41,700 2,288,288
===============================================================================
3,057,788
3.76 CABLE
Adelphia Communications Class A(a) 24,000 1,638,000
TCA Cable TV 18,800 936,475
===============================================================================
2,574,475
4.38 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Comverse Technology(a) 23,310 1,494,754
Digital Microwave(a) 48,100 613,275
Nokia Corp Sponsored ADR
Representing Ord Shrs 12,000 890,250
===============================================================================
2,998,279
8.77 COMPUTER RELATED
Inktomi Corp(a) 3,000 359,250
Mercury Interactive(a) 17,900 504,556
Microsoft Corp(a) 35,700 2,902,856
Siebel Systems(a) 34,000 1,306,875
Verio Inc(a) 13,000 923,000
===============================================================================
5,996,537
2.10 ELECTRICAL EQUIPMENT
General Electric 13,635 1,438,493
===============================================================================
11.77 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 73,080 5,280,030
Applied Micro Circuits(a) 14,200 757,037
Maxim Integrated Products(a) 23,000 1,288,000
Texas Instruments 7,095 724,577
===============================================================================
8,049,644
2.39 ENTERTAINMENT
Time Warner 23,300 1,631,000
===============================================================================
5.63 EQUIPMENT -- SEMICONDUCTOR
Applied Materials(a) 35,400 1,898,325
Photronics Inc(a) 28,900 691,794
Teradyne Inc(a) 26,700 1,259,906
===============================================================================
3,850,025
7.64 FINANCIAL
Citigroup Inc 32,860 2,472,715
Providian Financial 21,300 2,749,031
===============================================================================
5,221,746
2.68 FOOTWEAR
NIKE Inc Class B 29,500 1,834,531
===============================================================================
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
3.42 HEALTH CARE DRUGS -- PHARMACEUTICALS
Pfizer Inc 10,710 $1,232,319
Warner-Lambert Co 16,300 1,107,381
===============================================================================
2,339,700
2.41 HEALTH CARE RELATED
Bausch & Lomb 22,000 1,650,000
===============================================================================
2.80 INVESTMENT BANK/BROKER FIRM
Legg Mason 36,100 1,258,988
Schwab (Charles) Corp 6,000 658,500
===============================================================================
1,917,488
1.53 MANUFACTURING
Tyco International Ltd 12,900 1,048,125
===============================================================================
5.78 OIL & GAS RELATED
Atwood Oceanics(a) 32,000 1,116,000
Chevron Corp 15,000 1,496,250
Schlumberger Ltd 21,000 1,341,375
===============================================================================
3,953,625
8.40 RETAIL
eBay Inc(a) 7,300 1,519,313
Home Depot 18,300 1,096,856
Meyer (Fred) Inc(a) 21,400 1,158,275
Tandy Corp 22,000 1,593,625
Value America(a) 9,500 374,656
===============================================================================
5,742,725
8.56 SERVICES
America Online(a) 36,000 5,139,000
CMGI Inc(a) 2,800 712,775
===============================================================================
5,851,775
4.88 TELECOMMUNICATIONS -- LONG DISTANCE
COVAD Communications Group(a) 6,000 576,000
Viatel Inc(a) 60,000 2,760,000
===============================================================================
3,336,000
3.30 TELEPHONE
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 7,600 580,450
MetroNet Communications Class B
Non-Voting Shrs(a) 30,200 1,676,100
===============================================================================
2,256,550
TOTAL COMMON STOCKS (Cost $51,292,199) 66,445,381
===============================================================================
2.85 PREFERRED STOCKS
2.85 AUTOMOBILES
Porsche AG, Non-Voting Pfd
(Cost $1,725,014) 800 1,946,720
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $53,017,213)
(Cost for Income Tax
Purposes $53,022,364) $68,392,101
===============================================================================
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
GROWTH & INCOME FUND
98.27 COMMON STOCKS
0.32 AIRLINES
Northwest Airlines(a) 5,000 $170,313
===============================================================================
0.98 AUTOMOBILES
General Motors 5,940 528,289
===============================================================================
3.68 BANKS
BankAmerica Corp 23,135 1,665,720
Wells Fargo 7,400 319,588
===============================================================================
1,985,308
3.24 BEVERAGES
Coca-Cola Co 18,065 1,228,420
PepsiCo Inc 14,055 519,157
===============================================================================
1,747,577
0.81 BROADCASTING
Infinity Broadcasting Class A(a) 15,805 437,601
===============================================================================
1.32 CABLE
Comcast Corp Class A 10,800 709,425
===============================================================================
0.95 CHEMICALS
du Pont (E I) de Nemours 7,275 513,797
===============================================================================
2.63 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Lucent Technologies 15,420 927,127
Nokia Corp Sponsored ADR
Representing Ord Shrs 6,640 492,605
===============================================================================
1,419,732
9.70 COMPUTER RELATED
Cisco Systems(a) 9,375 1,069,336
Dell Computer(a) 25,780 1,061,814
International Business Machines 5,895 1,233,160
Microsoft Corp(a) 22,970 1,867,748
===============================================================================
5,232,058
3.73 ELECTRICAL EQUIPMENT
General Electric 19,070 2,011,885
===============================================================================
5.74 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 15,150 1,094,587
Intel Corp 16,570 1,013,877
Texas Instruments 9,680 988,570
===============================================================================
3,097,034
0.93 ENTERTAINMENT
Time Warner 7,200 504,000
===============================================================================
1.97 EQUIPMENT -- SEMICONDUCTOR
Lam Research(a) 33,765 1,063,597
===============================================================================
6.28 FINANCIAL
American Express 4,670 610,311
Citigroup Inc 25,845 1,944,836
Fannie Mae 11,705 830,323
===============================================================================
3,385,470
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
17.39 HEALTH CARE DRUGS -- PHARMACEUTICALS
Bristol-Myers Squibb 26,230 $1,667,244
Johnson & Johnson 18,905 1,843,237
Lilly (Eli) & Co 20,115 1,480,967
Merck & Co 23,300 1,636,825
Pfizer Inc 13,810 1,589,013
Schering-Plough Corp 9,790 472,979
Warner-Lambert Co 10,220 694,321
===============================================================================
9,384,586
3.95 HOUSEHOLD PRODUCTS
Colgate-Palmolive Co 5,725 586,455
Procter & Gamble 16,440 1,542,278
===============================================================================
2,128,733
2.98 INSURANCE
American International Group 13,675 1,605,958
===============================================================================
1.64 MANUFACTURING
Tyco International Ltd 10,890 884,813
===============================================================================
7.52 OIL & GAS RELATED
Baker Hughes 9,200 274,850
Chevron Corp 13,245 1,321,189
Exxon Corp 25,865 2,148,412
Schlumberger Ltd 4,925 314,584
===============================================================================
4,059,035
2.09 PERSONAL CARE
Gillette Co 21,610 1,127,772
===============================================================================
9.26 RETAIL
CVS Corp 18,660 888,683
Dayton Hudson 15,235 1,025,506
Home Depot 13,995 838,825
Safeway Inc(a) 15,470 834,413
Wal-Mart Stores 30,660 1,410,360
===============================================================================
4,997,787
4.29 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 30,413 1,535,831
MCI WorldCom(a) 9,460 777,494
===============================================================================
2,313,325
5.35 TELEPHONE
BellSouth Corp 30,170 1,350,107
SBC Communications 27,375 1,533,000
===============================================================================
2,883,107
1.52 TOBACCO
Philip Morris 23,320 817,658
===============================================================================
TOTAL COMMON STOCKS (Cost $46,128,048) 53,008,860
1.03 FIXED INCOME SECURITIES
1.03 PUBLISHING
Tribune Co, Exch Sub Deb, PHONES(b)
2.000%, 5/15/2029 (Cost $533,800) $340,000 552,925
===============================================================================
<PAGE>
SHARES OR
% DESCRIPTION PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
0.70 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State
Street dated 4/30/1999 due
5/3/1999 at 4.820%, repurchased
at $375,151 (Collateralized
by US Treasury Bills, Discount
Note due 10/14/1999, value
$386,791) (Cost $375,000) $375,000 375,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $47,036,848)
(Cost for Income Tax
Purposes $47,930,222) $53,936,785
===============================================================================
(a) Security is non-income producing.
(b) PHONES -- Participation Hybird Option Notes Exchangable Securities
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
INVESCO Stock Funds, Inc.
April 30, 1999
INVESCO
DYNAMICS ENDEAVOR
FUND FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $1,476,021,094 $53,017,213
===============================================================================
At Value(a) $2,012,405,835 $68,392,101
Cash 6,413 538,917
Receivables:
Investment Securities Sold 71,810,906 3,951,886
Fund Shares Sold 21,303,235 1,727,966
Dividends and Interest 405,684 17,621
Prepaid Expenses and Other Assets 89,546 51,791
===============================================================================
TOTAL ASSETS 2,106,021,619 74,680,282
===============================================================================
LIABILITIES
Payables:
Investment Securities Purchased 56,935,746 1,902,004
Fund Shares Repurchased 4,329,669 170,300
Accrued Distribution Expenses 402,222 15,262
Accrued Expenses and Other Payables 32,966 321
===============================================================================
TOTAL LIABILITIES 61,700,603 2,087,887
===============================================================================
NET ASSETS AT VALUE $2,044,321,016 $72,592,395
===============================================================================
NET ASSETS
Paid-in Capital(b) $1,457,662,927 $52,697,446
Accumulated Undistributed
Net Investment Loss (61,368) (154,763)
Accumulated Undistributed
Net Realized Gain on
Investment Securities and
Foreign Currency Transactions 50,335,869 4,674,887
Net Appreciation of Investment
Securities and Foreign
Currency Transactions 536,383,588 15,374,825
===============================================================================
NET ASSETS AT VALUE $2,044,321,016 $72,592,395
===============================================================================
Shares Outstanding 112,641,987 4,448,439
NET ASSET VALUE, Offering
and Redemption Price per Share $18.15 $16.32
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include a
repurchase agreement of $1,524,000 for Dynamics Fund.
(b)The Fund has 2 billion authorized shares of common stock, par value of $0.01
per share. Of such shares, 200 million have been allocated to Dynamics Fund,
100 million have been allocated to INVESCO Endeavor Fund and 100 million have
been allocated to Growth and Income Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
- -------------------------------------------------------------------------------
INVESCO Stock Funds, Inc.
April 30, 1999
GROWTH &
INCOME FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 47,036,848
===============================================================================
At Value(a) $ 53,936,785
Cash 3,346
Receivables:
Fund Shares Sold 115,123
Dividends and Interest 48,210
Prepaid Expenses and Other Assets 46,168
===============================================================================
TOTAL ASSETS 54,149,632
===============================================================================
LIABILITIES
Payables:
Investment Securities Purchased 133,386
Fund Shares Repurchased 9,622
Accrued Distribution Expenses 11,202
Accrued Expenses and Other Payables 1,600
===============================================================================
TOTAL LIABILITIES 155,810
===============================================================================
NET ASSETS AT VALUE $ 53,993,822
===============================================================================
NET ASSETS
Paid-in Capital(b) $ 43,885,027
Accumulated Undistributed Net Investment Loss (186)
Accumulated Undistributed Net Realized Gain
on Investment Securities 3,209,044
Net Appreciation of Investment Securities 6,899,937
===============================================================================
NET ASSETS AT VALUE $ 53,993,822
===============================================================================
Shares Outstanding 3,713,467
NET ASSET VALUE, Offering and Redemption
Price per Share $ 14.54
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include a
repurchase agreement of $375,000.
(b)The Fund has 2 billion authorized shares of common stock, par value of $0.01
per share. Of such shares, 200 million have been allocated to Dynamics Fund,
100 million have been allocated to INVESCO Endeavor Fund and 100 million have
been allocated to Growth and Income Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
INVESCO Stock Funds, Inc.
Period Ended April 30, 1999 (Note 1)
INVESCO
DYNAMICS ENDEAVOR
FUND FUND
- --------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $5,260,908 $153,450
Interest 3,806,182 89,701
Foreign Taxes Withheld (39,151) (1,375)
====================================================================
TOTAL INCOME 9,027,939 241,776
====================================================================
EXPENSES
Investment Advisory Fees 7,750,919 206,836
Distribution Expenses 3,613,324 68,945
Transfer Agent Fees 2,693,081 52,532
Administrative Fees 226,800 9,217
Custodian Fees and Expenses 243,127 7,372
Directors' Fees and Expenses 66,958 3,025
Professional Fees and Expenses 66,440 17,809
Registration Fees and Expenses 138,207 23,652
Reports to Shareholders 303,983 10,330
Other Expenses 45,889 1,096
====================================================================
TOTAL EXPENSES 15,148,728 400,814
Fees and Expenses Paid Indirectly (234,356) (4,275)
====================================================================
NET EXPENSES 14,914,372 396,539
====================================================================
NET INVESTMENT LOSS (5,886,433) (154,763)
====================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 57,564,185 4,675,087
Foreign Currency Transactions (51,357) (200)
====================================================================
Total Net Realized Gain 57,512,828 4,674,887
====================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 284,174,283 15,473,389
Foreign Currency Transactions (1,078,803) (98,564)
====================================================================
Total Net Appreciation 283,095,480 15,374,825
====================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 340,608,308 20,049,712
====================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS $334,721,875 $19,894,949
====================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO Stock Funds, Inc.
Period Ended April 30, 1999 (Note 1)
GROWTH &
INCOME FUND
- ----------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 294,923
Interest 55,415
Foreign Taxes Withheld (935)
================================================================
TOTAL INCOME 349,403
================================================================
EXPENSES
Investment Advisory Fees 209,172
Distribution Expenses 69,724
Transfer Agent Fees 70,040
Administrative Fees 12,517
Custodian Fees and Expenses 14,482
Directors' Fees and Expenses 5,297
Professional Fees and Expenses 18,142
Registration Fees and Expenses 65,749
Reports to Shareholders 15,211
Other Expenses 1,210
===============================================================
TOTAL EXPENSES 481,544
Fees and Expenses Absorbed by Investment Adviser (53,659)
Fees and Expenses Paid Indirectly (7,906)
===============================================================
NET EXPENSES 419,979
===============================================================
NET INVESTMENT LOSS (70,576)
===============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain on Investment Securities 5,112,480
Change in Net Appreciation of
Investment Securities 6,899,937
===============================================================
NET GAIN ON INVESTMENT SECURITIES 12,012,417
===============================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 11,941,841
===============================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Dynamics Fund
YEAR ENDED APRIL 30
- ------------------------------------------------------------------------------
1999 1998
OPERATIONS
Net Investment Loss $(5,886,433) $(4,623,573)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 57,512,828 220,083,978
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 283,095,480 236,377,288
===============================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 334,721,875 451,837,693
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities
and Foreign Currency Transactions (115,015,920) (133,519,730)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 2,129,570,413 1,320,495,638
Reinvestment of Distributions 113,049,160 130,727,993
===============================================================================
2,242,619,573 1,451,223,631
Amounts Paid for Repurchases of Shares (1,758,303,356) (1,191,638,369)
===============================================================================
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 484,316,217 259,585,262
===============================================================================
TOTAL INCREASE IN NET ASSETS 704,022,172 577,903,225
NET ASSETS
Beginning of Period 1,340,298,844 762,395,619
===============================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($61,368) and ($37,999), respectively) $2,044,321,016 $1,340,298,844
===============================================================================
-------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 135,833,566 88,367,135
Shares Issued from Reinvestment
of Distributions 8,011,923 9,785,039
===============================================================================
143,845,489 98,152,174
Shares Repurchased (112,899,930) (79,868,425)
===============================================================================
NET INCREASE IN FUND SHARES 30,945,559 18,283,749
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INVESCO Endeavor Fund
PERIOD ENDED
APRIL 30
- -------------------------------------------------------------------------------
1999
(Note 1)
OPERATIONS
Net Investment Loss $(154,763)
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 4,674,887
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 15,374,825
===============================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 19,894,949
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 154,292,260
Amounts Paid for Repurchases of Shares (101,594,814)
===============================================================================
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 52,697,446
===============================================================================
TOTAL INCREASE IN NET ASSETS 72,592,395
NET ASSETS
Beginning of Period (Note 1) 0
===============================================================================
End of Period (Including Accumulated Undistributed
Net Investment Loss of ($154,763)) $72,592,395
===============================================================================
------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 11,384,455
Shares Repurchased (6,936,016)
===============================================================================
NET INCREASE IN FUND SHARES 4,448,439
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Growth & Income Fund
PERIOD ENDED
APRIL 30
- -------------------------------------------------------------------------------
1999
(Note 1)
OPERATIONS
Net Investment Loss $(70,576)
Net Realized Gain on Investment Securities 5,112,480
Change in Net Appreciation of Investment Securities 6,899,937
===============================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 11,941,841
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities (1,833,046)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 103,261,159
Reinvestment of Distributions 1,763,814
===============================================================================
105,024,973
Amounts Paid for Repurchases of Shares (61,389,946)
===============================================================================
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 43,635,027
===============================================================================
TOTAL INCREASE IN NET ASSETS 53,743,822
NET ASSETS
Initial Subscription (Note 1) 250,000
Beginning of Period 0
===============================================================================
End of Period (Including Accumulated Undistributed
Net Investment Loss of ($186)) $ 53,993,822
===============================================================================
----------------------------------------------------
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) 25,000
Shares Sold 8,250,996
Shares Issued from Reinvestment of Distributions 137,476
===============================================================================
8,413,472
Shares Repurchased (4,700,005)
===============================================================================
NET INCREASE IN FUND SHARES 3,713,467
===============================================================================
See Notes to Financial Statements
<PAGE>
INVESCO NOTES TO FINANCIAL STATEMENTS - INVESCO STOCK FUNDS, INC.
- -------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Stock Funds,
Inc. (formerly known as INVESCO Equity Funds, Inc. which was formerly known as
INVESCO Capital Appreciation Funds, Inc.) (the "Fund") is incorporated in
Maryland and presently consists of three separate Funds: Dynamics Fund, INVESCO
Endeavor Fund and Growth & Income Fund. On August 4, 1998, the board of
directors of the Fund approved a name change to INVESCO Stock Funds, Inc. The
investment objective of each Fund is to seek appreciation of capital. INVESCO
Endeavor and Growth and Income Funds commenced investment operations on October
28, 1998 and July 1, 1998, respectively. 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 -- Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales price
in the market where such securities are primarily traded. If last sales prices
are not available, securities are valued at the highest closing bid price
obtained from one or more dealers making a market for such securities or by a
pricing service approved by the Fund's board of directors.
Debt securities are valued at evaluated bid prices as determined by a pricing
service approved by the Fund's board of directors. If evaluated bid prices are
not available, debt securities are valued by averaging the bid prices obtained
from one or more dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
If market quotations or pricing service valuations are not readily available,
securities are valued at fair value as determined in good faith under procedures
established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates market
value) if maturity is 60 days or less at the time of purchase, or market value
if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation.
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.
<PAGE>
C. PARTICIPATION HYBRID OPTION NOTES EXCHANGABLE SECURITIES -- The Fund invests
in participation hybrid option notes exchangable securities ("PHONES") whose
market value is derived from the market value of America Online common stock
plus a fluctuating premium. The evaluated bid price is determined by a pricing
service approved by the Fund's board of directors and marked-to-market daily.
The related appreciation or depreciation is presented in the Statement of Assets
and Liabilities and any realized gain or loss incurred by the Fund upon the sale
or maturity of the PHONES will be presented in the Statement of Operations.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the ex
dividend date. Certain dividends from foreign securities will be recorded as
soon as the Fund is informed of the dividend if such information is obtained
subsequent to the ex dividend date. Interest income, which may be comprised of
stated coupon rate, market discount, original issue discount and amortized
premium, is recorded on the accrual basis. Income and expenses on foreign
securities are translated into U.S. dollars at rates of exchange prevailing when
accrued. Discounts and premiums on debt securities purchased are amortized over
the life of the respective security as adjustments to interest income. Cost is
determined on the specific identification basis. The cost of foreign securities
is translated into U.S. dollars at the rates of exchange prevailing when such
securities are acquired.
The Fund may have elements of risk due to investments in foreign issuers located
in a specific country. Such investments may subject the Fund to additional risks
resulting from future political or economic conditions and/or possible
impositions of adverse foreign governmental laws or currency exchange
restrictions. Net realized and unrealized gain or loss from investment
securities includes fluctuations from currency exchange rates and fluctuations
in market value.
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
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.
Dynamics Fund incurred and elected to defer post-October 31 net foreign currency
losses of $994 to the year ended July 31, 1999.
To the extent future capital gains are offset by capital loss carryovers and
deferred post-October 31 losses, such gains will not be distributed to
shareholders.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex dividend/distribution date. The
Fund distributes net realized capital gains, if any, to its shareholders at
least annually, if not offset by capital loss carryovers. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, market discounts, amortized premiums, nontaxable dividends, net
operating losses and expired capital loss carryforwards.
<PAGE>
For the period ended April 30, 1999, the effects of such differences
were as follows:
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED NET REALIZED
NET GAIN ON
INVESTMENT INVESTMENT
FUND INCOME SECURITIES
- -------------------------------------------------------------------
Dynamics Fund $5,863,064 $(5,863,064)
INVESCO Endeavor Fund 0 0
Growth and Income Fund 70,390 (70,390)
Net investment income (loss), net realized gains, paid-in capital and net assets
were not affected.
G. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into short-term forward
foreign currency contracts in connection with planned purchases or sales of
securities as a hedge against fluctuations in foreign exchange rates pending the
settlement of transactions in foreign securities. A forward foreign currency
contract is an agreement between contracting parties to exchange an amount of
currency at some future time at an agreed upon rate. These contracts are
marked-to-market daily and the related appreciation or depreciation of the
contracts is presented in the Statement of Assets and Liabilities. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
H. 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. Similarly, Custodian Fees and Expenses for
Dynamics Fund are reduced by credits earned by the Fund from security brokerage
transactions under certain broker/service arrangements with third parties. 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 the Funds, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee is based on the annual
rate of each Fund's average net assets as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$500 $700 $1 $2 $4 $6
$0 TO $0 TO $350 TO MILLION MILLION BILLION BILLION BILLION BILLION OVER
$350 $500 $700 TO $1 TO $2 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION MILLION MILLION BILLION BILLION BILLION BILLION BILLION BILLION BILLION
- --------------------------------------------------------------------------------------------------
Dynamics
Fund 0.60% -- 0.55% -- 0.50% -- 0.45%* 0.40%* 0.375%* 0.35%*
INVESCO
Endeavor
Fund~ -- 0.75% -- 0.65% -- 0.55% 0.45% 0.40% 0.375% 0.35%
Growth &
Income
Fund~ -- 0.75% -- 0.65% -- 0.55% 0.45% 0.40% 0.375% 0.35%
</TABLE>
~ Prior to May 13, 1999, the investment advisory fee was computed at an annual
rate of 0.75% of each Fund's average net assets. Effective May 13, 1999, the
investment advisory fee is contractual and is computed at the above rates.
* These additional contractual breakpoints became effective May 13, 1999, for
Dynamics Fund.
<PAGE>
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
compensation of marketing and advertising expenditures to INVESCO Distributors,
Inc. ("IDI" or the "Distributor"), a wholly owned subsidiary of IFG, to a
maximum of 0.25% of annual average net assets. For the period ended April 30,
1999, Dynamics, INVESCO Endeavor and Growth & Income Funds paid the
Distributor $3,480,792, $53,683 and $58,522, respectively, under the plan of
distribution.
IFG receives a transfer agent fee from each Fund at an annual rate of $20.00 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 Agreement, each Fund paid 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. Effective May 13, 1999, 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.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by Growth and Income Fund.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended
April 30, 1999, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were as follows:
FUND PURCHASES SALES
- -------------------------------------------------------------------------------
Dynamics Fund $2,047,869,006 $1,779,417,631
INVESCO Endeavor Fund 103,332,606 54,990,480
Growth & Income Fund 84,122,761 42,573,393
There were no purchases or sales of U.S. Government securities.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At April 30, 1999, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation by Fund were as follows:
GROSS GROSS NET
FUND APPRECIATION DEPRECIATION APPRECIATION
- -------------------------------------------------------------------------------
Dynamics Fund $548,868,684 $20,988,945 $527,879,739
INVESCO Endeavor Fund 16,747,497 1,377,760 15,369,737
Growth & Income Fund 6,985,353 978,790 6,006,563
NOTE 5 -- TRANSACTIONS WITH AFFILIATES. Certain of the Funds' officers and
directors are also officers and directors of IFG or IDI.
The Funds have adopted an unfunded defined benefit deferred compensation plan
covering all independent directors of the Funds 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 fee.
<PAGE>
Pension expenses for the period ended April 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
- ----------------------------------------------------------------------
Dynamics Fund $23,756 $37,426 $97,789
Growth & Income Fund 192 491 678
Pension expenses, unfunded accrued pension costs and pension liabilities were
insignificant for the period ended April 30, 1999 for INVESCO Endeavor Fund.
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 or
Treasurer's Series Funds, Inc.
NOTE 6 -- LINE OF CREDIT. Each Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. At April
30, 1999, there were no such borrowings.
------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
INVESCO Stock 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 Dynamics Fund, INVESCO Endeavor
Fund and Growth & Income Fund (constituting INVESCO Stock Funds, Inc.,
formerly known as INVESCO Equity Funds, Inc. which was formerly known as INVESCO
Capital Appreciation Funds, Inc., hereafter referred to as the "Fund") at April
30, 1999, the results of each of their operations for each of the periods
indicated, the changes in each of their net assets for each of the periods
indicated 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 April 30, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Denver, Colorado
June 4, 1999
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
Dynamics Fund
(For A Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
PER SHARE DATA
Net Asset Value-Beginning of Period $16.41 $12.02 $13.61 $11.38 $10.15
=====================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss)(a) 0.00 (0.05) (0.04) 0.02 0.03
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.04 6.39 (0.19) 3.94 1.34
======================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.04 6.34 (0.23) 3.96 1.37
======================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income(b) 0.00 0.00 0.00 0.02 0.03
Distributions from Capital Gains 1.30 1.95 1.36 1.71 0.11
======================================================================================
TOTAL DISTRIBUTIONS 1.30 1.95 1.36 1.73 0.14
======================================================================================
Net Asset Value-- End of Period $18.15 $16.41 $12.02 $13.61 $11.38
======================================================================================
TOTAL RETURN 20.83% 56.42% (2.34%) 36.32% 13.57%
RATIOS
Net Assets-- End of
Period ($000 Omitted) $2,044,321 $1,340,299 $762,396 $778,416 $421,600
Ratio of Expenses to
Average Net Assets 1.05%(c) 1.08%(c) 1.16%(c) 1.14%(c) 1.20%(d)
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.41%) (0.43%) (0.31%) 0.16% 0.33%(d)
Portfolio Turnover Rate 129% 178% 204% 196% 176%
</TABLE>
(a)Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the year ended April 30, 1999.
(b)Distributions in excess of net investment income for the year ended April
30, 1996, aggregated less than $0.01 on a per share basis.
(c)Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(d)Various expenses of the Fund were voluntarily absorbed by IFG for the year
ended April 30, 1995. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.22% and ratio of
net investment income to average net assets would have been 0.31%.
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
INVESCO Endeavor Fund
(For A Fund Share Outstanding Throughout Each Period)
PERIOD ENDED
APRIL 30
- -------------------------------------------------------------------------------
1999(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $10.00
===============================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.03)
Net Gains on Securities (Both Realized and Unrealized) 6.35
===============================================================================
TOTAL FROM INVESTMENT OPERATIONS 6.32
===============================================================================
Net Asset Value-- End of Period $16.32
===============================================================================
TOTAL RETURN 63.20%(b)
RATIOS
Net Assets -- End of Period ($000 Omitted) $72,592
Ratio of Expenses to Average Net Assets(c) 1.43%(d)
Ratio of Net Investment Loss to Average Net Assets (0.55%)(d)
Portfolio Turnover Rate 107%(b)
(a)From October 28, 1998, commencement of investment operations,
to April 30, 1999.
(b)Based on operations for the period shown and, accordingly, are not
representative of a full year.
(c)Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(d)Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
Growth & Income Fund
(For A Fund Share Outstanding Throughout Each Period)
PERIOD ENDED
APRIL 30
- -------------------------------------------------------------------------------
1999(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $10.00
===============================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (b) 0.00
Net Gains on Securities (Both Realized and Unrealized) 5.22
===============================================================================
TOTAL FROM INVESTMENT OPERATIONS 5.22
===============================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 0.68
===============================================================================
Net Asset Value-- End of Period $14.54
===============================================================================
TOTAL RETURN 53.07%(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $53,994
Ratio of Expenses to Average Net Assets(d)(e) 1.52%(f)
Ratio of Net Investment Loss to Average Net Assets(e) (0.25%)(f)
Portfolio Turnover Rate 121%(c)
(a)From July 1, 1998, commencement of investment operations, to April 30, 1999.
(b)Net Investment Loss aggregated less than $0.01 on a per share basis for the
period ended April 30, 1999.
(c)Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d)Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any offset arrangements.
(e)Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended April 30, 1999. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.71% (annulaized)
and the ratio of net investment loss to average net assets would have been
(0.44%) (annualized).
(f)Annualized
<PAGE>
OTHER INFORMATION
- -----------------
UNAUDITED
On May 20, 1999, a special meeting of the shareholders of each Fund was held at
which the ten directors identified below were elected. The selection of
PricewaterhouseCoopers LLP as independent accountants (Proposal 1) and the
approval of changes to the fundamental investment restrictions identified below
(Proposal 2) were ratified. The following is a report of the votes cast:
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
DYNAMICS FUND
Charles W. Brady 54,672,304 0 5,473,211 60,145,515
Fred A. Deering 54,667,065 0 5,478,450 60,145,515
Mark H. Williamson 54,688,140 0 5,457,375 60,145,515
Dr. Victor L. Andrews 54,673,560 0 5,471,955 60,145,515
Bob R. Baker 54,702,313 0 5,443,202 60,145,515
Lawrence H. Budner 54,691,041 0 5,454,474 60,145,515
Dr. Wendy Lee Gramm 54,718,191 0 5,427,324 60,145,515
Kenneth T. King 54,649,126 0 5,496,389 60,145,515
John W. McIntyre 54,677,189 0 5,468,326 60,145,515
Dr. Larry Soll 54,726,593 0 5,418,922 60,145,515
Proposal 1 56,514,522 315,244 3,315,747 60,145,513
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Issuer diversification 50,603,362 1,484,717 8,057,436 60,145,515
b --Industry concentration
and adoption of non-
fundamental restriction
on classification of domestic
and foreign banking 50,609,220 1,478,859 8,057,436 60,145,515
c --Underwriting securities 50,612,003 1,476,076 8,057,436 60,145,515
d --Borrowing and adoption
of non-fundamental
restriction on borrowing 50,602,089 1,485,990 8,057,436 60,145,515
e --Preference shares and
funded debt 50,601,646 1,486,433 8,057,436 60,145,515
f --Loans 50,596,104 1,491,975 8,057,436 60,145,515
g --Investing in real estate
and commodities 50,597,879 1,490,200 8,057,436 60,145,515
h --Investing in another
investment company and
adoption of non-fundamental
restriction on investing in
another investment company 50,603,274 1,484,805 8,057,436 60,145,515
<PAGE>
OTHER INFORMATION (CONTINUED)
- -----------------------------
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
Dynamics Fund (Continued)
Elimination of Fundamental
Investment Restrictions on:
i -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 50,604,039 1,484,040 8,057,436 60,145,515
j -- Investing in companies for
the purpose of exercising
control or management 50,600,871 1,487,208 8,057,436 60,145,515
k -- Investing in securities that
are illiquid or not readily
marketable and adoption of
non-fundamental restriction
on investing in illiquid
securities 50,598,709 1,489,370 8,057,436 60,145,515
l -- Purchase of securities of
issuers owned by directors and
officers of the Funds or their
investment adviser 50,598,422 1,489,657 8,057,436 60,145,515
INVESCO Endeavor Fund
Charles W. Brady 2,265,136 0 53,587 2,318,723
Fred A. Deering 2,265,265 0 53,458 2,318,723
Mark H. Williamson 2,265,344 0 53,379 2,318,723
Dr. Victor L. Andrews 2,259,411 0 59,312 2,318,723
Bob R. Baker 2,266,009 0 52,714 2,318,723
Lawrence H. Budner 2,265,833 0 52,890 2,318,723
Dr. Wendy Lee Gramm 2,259,352 0 59,371 2,318,723
Kenneth T. King 2,265,558 0 53,165 2,318,723
John W. McIntyre 2,265,750 0 52,973 2,318,723
Dr. Larry Soll 2,259,460 0 59,263 2,318,723
Proposal 1 2,227,725 11,953 79,044 2,318,722
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Issuer diversification 1,778,591 74,530 465,602 2,318,723
b --Industry concentration
and adoption of non-
fundamental restriction
on classification of domestic
and foreign banking 1,778,591 74,530 465,602 2,318,723
c --Underwriting securities 1,778,591 74,530 465,602 2,318,723
<PAGE>
OTHER INFORMATION (CONTINUED)
- -----------------------------
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
INVESCO Endeavor Fund (CONTINUED)
d -- Borrowing and adoption
of non-fundamental
restriction on borrowing 1,778,591 74,530 465,602 2,318,723
e --Preference shares and
funded debt 1,778,591 74,530 465,602 2,318,723
f --Loans 1,778,591 74,530 465,602 2,318,723
g --Investing in real estate
and commodities 1,778,491 74,630 465,602 2,318,723
h --Investing in another
investment company and
adoption of non-fundamental
restriction on investing in
another investment company 1,778,591 74,530 465,602 2,318,723
Elimination of Fundamental
Investment Restrictions on:
i -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 1,778,491 74,630 465,602 2,318,723
j --Investing in companies for
the purpose of exercising
control or management 1,778,591 74,530 465,602 2,318,723
k -- Investing in securities that
are illiquid or not readily
marketable and adoption of
non-fundamental restriction
on investing in illiquid
securities 1,778,491 74,630 465,602 2,318,723
l --Purchase of securities of
issuers owned by directors and
officers of the Funds or their
investment adviser 1,778,591 74,530 465,602 2,318,723
Growth & Income Fund
Charles W. Brady 2,055,985 0 107,109 2,163,094
Fred A. Deering 2,057,153 0 105,941 2,163,094
Mark H. Williamson 2,057,048 0 106,046 2,163,094
Dr. Victor L. Andrews 2,056,509 0 106,585 2,163,094
Bob R. Baker 2,057,611 0 105,483 2,163,094
Lawrence H. Budner 2,057,046 0 106,048 2,163,094
Dr. Wendy Lee Gramm 2,056,938 0 106,156 2,163,094
Kenneth T. King 2,056,773 0 106,321 2,163,094
John W. McIntyre 2,057,753 0 105,341 2,163,094
Dr. Larry Soll 2,058,305 0 104,789 2,163,094
<PAGE>
OTHER INFORMATION (CONTINUED)
- -----------------------------
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
Growth & Income Fund (Continued)
Proposal 1 2,085,205 19,582 58,305 2,163,092
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Issuer diversification 1,636,280 107,548 419,266 2,163,094
b --Industry concentration
and adoption of non-
fundamental restriction
on classification of domestic
and foreign banking 1,636,280 107,548 419,266 2,163,094
c --Underwriting securities 1,636,280 107,548 419,266 2,163,094
d --Borrowing and adoption
of non-fundamental
restriction on borrowing 1,636,280 107,548 419,266 2,163,094
e --Preference shares and
funded debt 1,633,525 110,303 419,266 2,163,094
f --Loans 1,636,280 107,548 419,266 2,163,094
g --Investing in real estate
and commodities 1,636,231 107,597 419,266 2,163,094
h --Investing in another
investment company and
adoption of non-fundamental
restriction on investing in
another investment company 1,636,280 107,548 419,266 2,163,094
Elimination of Fundamental
Investment Restrictions on:
i -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 1,636,280 107,548 419,266 2,163,094
j --Investing in companies for
the purpose of exercising
control or management 1,636,280 107,548 419,266 2,163,094
k -- Investing in securities that
are illiquid or not readily
marketable and adoption of
non-fundamental restriction
on investing in illiquid
securities 1,636,280 107,548 419,266 2,163,094
l --Purchase of securities of
issuers owned by directors and
officers of the Funds or their
investment adviser 1,636,280 107,548 419,266 2,163,094
<PAGE>
YEAR 2000 COMPUTER ISSUE.
Many computer systems in use today may not be able to recognize any date after
December 31, 1999. If these systems are not fixed by that date, it is possible
that they could generate erroneous information or fail altogether. INVESCO has
committed substantial resources in an effort to make sure that its own major
computer systems will continue to function on and after January 1, 2000. Of
course, INVESCO cannot fix systems that are beyond its control. If INVESCO's
own systems, or the systems of third parties upon which it relies, do not
perform properly after December 31, 1999, the Funds could be adversely affected.
In addition, the markets for, or values of, securities in which the Funds invest
may possibly be hurt by computer failures affecting portfolio investments or
trading of securities beginning January 1, 2000. For example, improperly
functioning computer systems could result in securities trade settlement
problems and liquidity issues, production issues for individual companies and
overall economic uncertainties. Individual issuers may incur increased costs
in making their own systems
Year 2000 compliant. The combination of market uncertainty and increased costs
means that there is a possibility that Year 2000 computer issues may adversely
affect the Funds' investments. At this time, it is generally believed that
foreign issuers, particularly those in emerging and other markets, may be more
vulnerable to Year 2000 problems than will be issuers in the U.S.
<PAGE>
INVESCO Family Of Funds
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- --------------------------------------------------------------------------------
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
Utilities 58 FSTUX Util
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
STOCK
Growth & Income 21 IVGIX Gro&Inc
INVESCO Endeavor 61 IVENX Endeavor
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund
- Class II 23 ISPIX SP500II
- --------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Industrial Income 15 FIIIX IndInc
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
BOND
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
- --------------------------------------------------------------------------------
TAX-EXEMPT
Tax-Free Bond 35 FTIFX TxFre
- --------------------------------------------------------------------------------
MONEY MARKET
U.S. Government Money Fund 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money Fund 40 FFRXX InvTaxFree
Money Market Reserve 96 IMRXX INVESCOMMR
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 FOR A PROSPECTUS. READ IT
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
[INVESCO Icon]
INVESCO
YOU SHOULD
KNOW WHAT
INVESCO KNOWS (TM)
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, CO 80217-3706
This information must be preceded or accompanied
by a current prospectus.
AEQ 9011 5/99
