KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
- --------------------------------------------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS (TM)
- --------------------------------------------------------------------------------
INVESCO STOCK FUNDS
BLUE CHIP GROWTH FUND
DYNAMICS FUND
GROWTH & INCOME FUND
INVESCO ENDEAVOR FUND
SMALL COMPANY GROWTH FUND
VALUE EQUITY FUND
S&P 500 INDEX FUND
ANNUAL
[INVESCO ICON]
INVESCO
ANNUAL REPORT | July 31, 1999
<PAGE>
"THE FIRST NINE MONTHS OF ITS EXISTENCE HAVE SEEN OUR FUND COVER A GOOD BIT OF
GROUND. THIS HAS BEEN TRUE NOT ONLY OF ITS RETURNS--WHICH HAVE BEEN VERY
REWARDING--BUT ALSO IN TERMS OF THE KINDS OF MARKETS INVESCO ENDEAVOR FUND HAS
EXPERIENCED." (PAGE 10)
As you may know, at the shareholder meeting in May, shareholders approved
reorganizing several INVESCO funds. As a result, the fiscal year-end for INVESCO
Stock Funds, Inc., is now July 31. Growth & Income Fund, Value Equity Fund and
S&P 500 Index Fund now pay dividends in January, April, July, and October.
Graph: Blue Chip Growth Fund 10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Blue Growth 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 ten year period ended 7/31/99.
Graph: Dynamics Fund 10-year Total Return vs. S&P MidCap 400 Index
This line graph compares the value of a $10,000 investment in INVESECO
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 07/31/99.
Graph: Small Company Growth Fund since inception (12/91) Total Return
vs. Russell 2000 Index
This line graph compares the value of a $10, 000 investment in INVESCO
Small Company Growth Fund to the value to a $10,000 investment in the
Russell 2000 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the period from inception (12/91)
through 07/31/99.
<PAGE>
Graph: Value Equity Fund 10-year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESECO
Value Equity 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 ten year period ended 07/31/99.
Graph: Growth & Income Fund since inception (07/98) Total Return
vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESECO
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 07/31/99.
Graph: INVESCO Endeavor Fund since inception (10/98) Total Return
vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESECO
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
07/31/99.
Graph: S&P 500 Index Fund-Class I and II since inception (12/97) Total Return
vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
S&P 500 Index Fund Class I and II 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
(12/97) through 07/31/99.
The line graphs illustrate the value of a $10,000 investment, plus reinvested
dividends and capital gain distributions, for the 10-year period or from
inception through 07/31/99. The charts and other total return figures cited
reflect the funds' operating expenses, but the indexes do not have expenses,
which would, of course, have lowered their performance. (of course, past
performance is not a guarantee of future results.) (1),(2)
<TABLE>
TOTAL RETURN,
PERIODS ENDED 7/31/99(1)
<CAPTION>
CUMULATIVE AVERAGE ANNUALIZED
6 MONTHS 1 YEAR 5 YEARS* 10 YEARS* PAGE NUMBER
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Blue Chip Growth -0.58% 22.83% 23.66% 16.87% 4
- --------------------------------------------------------------------------------------------
Dynamics 16.39% 33.98% 25.43% 20.11% 6
- --------------------------------------------------------------------------------------------
Growth & Income 6.51% 45.25% 55.82% (since inception 7/98) 8
- --------------------------------------------------------------------------------------------
INVESCO Endeavor 8.00% 66.10% (cumulative since inception 10/98) 10
- --------------------------------------------------------------------------------------------
Small Company Growth 16.23% 32.32% 18.45% 18.39%** 12
- --------------------------------------------------------------------------------------------
Value Equity 0.94% 8.05% 18.78% 13.56% 13
- --------------------------------------------------------------------------------------------
S&P 500 Index - Class I 3.96% 20.40% 26.36% (since inception 12/97) 15
- --------------------------------------------------------------------------------------------
S&P 500 Index - Class II 3.83% 20.09% 26.92% (since inception 12/97) 15
- --------------------------------------------------------------------------------------------
</TABLE>
* Average Annualized
** Since Inception 12/91
<PAGE>
BLUE CHIP GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
- --------------------------------------------------------------------------------
Dear Shareholder:
Reflecting on the past year, we see two roughly equal periods for our fund. The
first period, which lasted until this spring, saw us dramatically outperform the
domestic market as it recovered from the Asian financial crisis. The second,
which took us through the summer, was considerably less robust.
Looking forward, however, it is the latter period that may be more encouraging
for the long-term future of our fund. Many of the leading companies in which we
invest have come down significantly in price.We view this as an opportunity to
increase our investment in these firms, which have shown few signs of losing
their expanding lead over the competition.
For the one-year period ended July 31, 1999, the value of your shares rose
22.83%. This return slightly exceeded that of the S&P 500 over the same period,
which rose 20.20%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
A NEW DYNAMIC
In our last report, we explained to you the factors behind the favorable
performance of large-company growth stocks over the previous six months. Worried
about a global economic slowdown, investors headed toward those relatively few
companies that could reliably deliver solid earnings growth. This was
particularly true of leading companies within the pharmaceutical and technology
sectors, both areas of focus for our fund. At the same time, declining interest
rates encouraged investors to increase their investment horizons and place a
higher emphasis on future earnings in evaluating companies.
To a certain extent, these same factors have reversed over the past several
months. With the global economy recovering, the markets
have become more willing to seek out low-priced companies that might benefit
from a healthier environment. At the same time, interest rates have moved up in
response to worries that the Federal Reserve Board might tighten interest rates
in order to head off inflation.
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TRENT E. MAY, CFA
VICE PRESIDENT TRENT E. MAY IS LEAD MANAGER OF BLUE CHIP GROWTH FUND. HE
RECEIVED A BA FROM THE FLORIDA INSTITUTE OF TECHNOLOGY AND AN MBA FROM ROLLINS
COLLEGE. TRENT BEGAN HIS INVESTMENT CAREER IN 1987, AND JOINED INVESCO IN 1996.
HE IS A CHARTERED FINANCIAL ANALYST.
DOUGLAS J. MCELDOWNEY, CFA, CPA
WE ARE PLEASED TO ANNOUNCE THAT DOUGLAS MCELDOWNEY HAS JOINED INVESCO AS VICE
PRESIDENT AND CO-MANAGER OF BLUE CHIP GROWTH FUND. DOUG RECEIVED HIS BA FROM THE
UNIVERSITY OF KENTUCKY AND HIS MBA FROM ROLLINS COLLEGE. HE BEGAN HIS INVESTMENT
CAREER IN 1984 AND HAS CO-MANAGED THIS FUND SINCE APRIL 1999. HE IS A CHARTERED
FINANCIAL ANALYST AND CERTIFIED PUBLIC ACCOUNTANT.
<PAGE>
BUT THE FUNDAMENTALS REMAIN IN PLACE
It is worth noting, however, that fundamentals of the companies we invest in
have remained remarkably stable in the face of these external changes. Indeed,
earnings growth has been spectacular of late, with many companies enjoying
growth rates above 40 percent. (Of course, past performance is no guarantee of
future results and the composition of our holdings is subject to change.)
As a result, we have lately seen a great divergence between earnings and stock
price performance. The experience of the retail and online brokerage firm
Charles Schwab is illustrative. A strong performer last year, the stock price
has recently fallen more than 50 percent. At the same time, however, Schwab has
managed to continue to sign on clients, and profits have increased more than 100
percent on a year-over-year basis.
CHANGE CREATES OPPORTUNITY
While frustrating on the one hand, this curious result has also given us the
opportunity to increase our investments in Schwab and other leading companies.
Indeed, the portfolio has recently become more concentrated as we have taken
advantage of these prices to liquidate other holdings and strengthen our
positions in these companies.
Certainly, nothing in the past several months has shaken our faith in the tenets
of our growth investing discipline. We still believe that leading companies in
growing sectors such as communications and technology will continue to widen
their lead over the next several years, and patient growth investors may be
amply rewarded.
/s/Trent May /s/Douglas J. McEldowney
Trent E. May Douglas J. McEldowney
Vice President Vice President
<PAGE>
DYNAMICS FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
- --------------------------------------------------------------------------------
Dear Shareholder:
This has been a rewarding year for our fund based on our total returns, but we
are especially pleased with the consistency of those returns over the period.
Last fall and winter, when investors were focused almost exclusively on the
stocks of large companies, we were nonetheless able to enjoy results from
mid-sized stocks. As the market began to shift back toward small- and
mid-capitalization firms this spring, our consistent focus on these stocks
proved a rewarding strategy.
For the one-year period ended July 31, 1999, the value of your shares rose
33.98%. This return handily exceeded that of the S&P MidCap 400 Index over the
same period, which rose 19.32%. (Of course, past performance is not a guarantee
of future results.)(1),(2)
Our success over the past year was based largely on our ability to choose
mid-sized companies that are leaders in rapidly expanding industries. Of course,
even these firms have endured periodic reversals. No company is entirely
insulated from the sort of financial and economic turmoil the world experienced
last summer. Additionally, as interest rates crept upward this spring, even the
stocks of strong companies suffered as investors re-evaluated the equity
markets.
COMMUNICATIONS: A PRIME GROWTH SECTOR
Still, we believe that many of these firms stand at the frontiers of dramatic
new vistas being opened by economic and technological change--and that this fact
will prove the ultimate driver of their stock performance. The communications
revolution serves as a prime example. Due to new technologies and world growth,
the size of the communications market is expanding rapidly. Data, voice, audio,
and video traffic are speeding across national boundaries at rates that few
could have predicted even a decade ago.
At the same time, the competitive landscape of the communications sector is
evolving. Incumbent firms around the world--whether government-sponsored
monopolies or simply entrenched firms--have begun to see their domains
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER IS LEAD MANAGER OF 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 AN MBA FROM THE UNIVERSITY OF MISSOURI
(ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A CHARTERED FINANCIAL
ANALYST. TIM HAS OVER 20 YEARS OF INVESTMENT EXPERIENCE.
THOMAS R. WALD, CFA
VICE PRESIDENT TOM WALD CO-MANAGES 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>
encroached upon. The newcomers are often carriers or equipment makers that bring
entirely different business models to the industry. Many of these challengers
have been enjoying growth rates of 20 to 30 percent, or even greater.
A DOUBLE OPPORTUNITY
This is an ideal atmosphere, we believe, for mid-capitalization growth
investing. In this environment, and in similar ones in other sectors, aggressive
medium-sized companies have the opportunity to seize a larger part of growing
markets. Thus, successful mid-cap investors can garner two rewards: one provided
by competition, and the other by market expansion.
It is clear to us that the securities markets will continue to face challenges.
The rise in interest rates, in particular, suggests that the boost provided by
declining interest rates may disappear, and that earnings growth alone will bear
the responsibility for further appreciation. Earnings have come in quite strong
so far this year, however, leaving us optimistic.
We believe it would be counterproductive for us to try to base our approach on
these perceptions of the overall market, however. Instead, our strategy going
forward will be governed by the basic acknowledgment that this is a watershed
era in the global economy. Over the past year, our fund has profited from this
emerging era, and we are optimistic that we can continue to do so going forward.
/s/Timothy J. Miller /s/Thomas R. Wald
Timothy J. Miller Thomas R. Wald
Senior Vice President Vice President
<PAGE>
GROWTH & INCOME FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to report that this was a very successful first year for our
fund. In part, this was due to our beginning operations at an auspicious time in
the markets: We were able to purchase many of our holdings in the fall of 1998,
when prices were depressed following the onset of the Asian financial crisis.
Obviously, this represented a fortuitous situation, one that is unlikely to
recur as we move forward. But the fund's superior performance is also tied
largely to its focus on companies with impressive earnings and revenue growth.
Despite some dire predictions last year, many of these large firms continued to
prosper even in the face of the economic slowdown overseas.
For the one-year period ended July 31, 1999, the value of your shares rose
45.25%. This return was more than double that of the S&P 500 Index over the same
period, which rose 20.20%. (Of course, past performance is not a guarantee of
future results.)(1),(2)
NEW INTEREST RATE CONCERNS
As we predicted in our last report to you, our challenge over the past few
months has been to adjust to changing market conditions. Investors have become
increasingly concerned that the Federal Reserve Board might increase interest
rates in an effort to stem inflation--and, indeed, the Fed Funds rate moved
higher by 0.25% in late June and again in August. Clearly, higher interest rates
are not a positive factor for the stocks of large, growing companies. Higher
rates cause investors to pay less attention to future earnings, and increased
borrowing costs threaten to slow economic growth.
We also noted last time, however, our reluctance to change tactics and invest in
slower-growing or second-tier companies, even though the prices of these stocks
might appear attractive. That decision has recently proved a beneficial
strategy, as the returns of many "value" stocks have stalled over the last few
months following their run-up in the spring. Indeed, we have been able to avoid
the recent market doldrums and add to our gains over the past three- and
six-month periods.
- --------------------------------------------------------------------------------
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 1987, AND JOINED INVESCO IN 1996. HE IS A
CHARTERED FINANCIAL ANALYST.
FRITZ MEYER
VICE PRESIDENT FRITZ MEYER IS CO-MANAGER OF 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 1976 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>
SOME ADJUSTMENTS
In part, we have been able to do so by moving more of the fund's assets into
sectors that appear poised to benefit from a rebound in the world economy, while
lowering our exposure to industries vulnerable to rising domestic interest
rates. We have recently increased our weighting in the capital goods and energy
sectors; simultaneously, we have reduced our holdings in consumer cyclicals and
consumer staples.
We hope this partial realignment will leave us in a position to continue to
benefit from a domestic and global economy that seems almost too strong--at
least from the standpoint of the Federal Reserve Board. World commodities prices
seem to have regained some solid footing after their tumble last year, and we
see opportunities in the large American companies that help supply, refine, and
then transform them into finished goods.
BUT A CONTINUING FOCUS ON THE CORE
Some might find it unusual, therefore, that we are also selectively increasing
our positions in the technology sector. Certainly, the stocks of many leading
technology companies have suffered lately as investors have reevaluated these
firms in light of higher interest rates, which serve to lessen the attraction of
their future earnings.
We consider many of these companies to be core positions of our fund, however.
Having carefully researched their business plans, we remain convinced that their
growth prospects justify holding their stock even through periods of market
evolution such as the current one. For this reason, we have used the recent
pullback as a buying opportunity.
This two-pronged approach seems to us to best serve our goal going forward,
which is to offer shareholders the potential benefits of the INVESCO growth
discipline, while seeking to moderate the short-term volatility of the fund.
/s/Trent E. May /s/Fritz Meyer
Trent E. May Fritz Meyer
Vice President Vice President
<PAGE>
INVESCO ENDEAVOR FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The first nine months of its existence have seen our fund cover a good bit of
ground. This has been true not only of its returns--which have been very
rewarding--but also in terms of the kinds of markets INVESCO Endeavor Fund has
experienced. Indeed, it is perhaps this latter fact that we view as most
encouraging for the future performance of our fund.
For the period since our inception through July 31, 1999, the value of your
shares rose 66.10%. This return nearly trebled that of the S&P 500 Index over
the same period, which rose 22.12%. (Of course, past performance is not a
guarantee of future results.)(1),(2)
AN AUSPICIOUS BEGINNING
We began operations at an auspicious time for all investors, and especially for
those who invest in rapidly growing companies. Following the Asian financial
crisis last summer, the prices of many leading firms were relatively depressed
when we began assembling the portfolio. As a result, we were able to "ride the
rebound" as the equity markets recovered in the winter and spring.
Our focus during this period was on large-capitalization growth stocks,
especially in the technology sector. The remarkable performance of many of these
companies' stocks was widely touted in the press, leading many investors to rush
to purchase shares.
CHANGING CONDITIONS BRING ADJUSTMENTS
Conditions began to change this spring, however. Concerned by higher interest
rates, many of the same investors who had earlier focused on technology firms
began to liquidate their positions and reallocate their portfolios to firms in
slower-growing sectors. As a result, a huge wave of assets shifted across the
markets, causing dramatic appreciation in value stocks and a depreciation in
growth stocks.
That we did not get caught in the undertow was due mainly to our ability to move
across the capitalization spectrum and to focus our investments on our strongest
holdings. Beginning a few months ago, we lowered the median capitalization level
of the fund in order to take advantage of attractive opportunities in small- and
medium-sized companies. At the same time, we chose to liquidate some of our
successful positions in larger firms, particularly in the consumer cyclicals
group.
- --------------------------------------------------------------------------------
FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER OVERSEES INVESCO ENDEAVOR FUND. THE FUND DRAWS
ON THE BEST IDEAS OF THE ENTIRE INVESCO GROWTH TEAM, WHICH TIM ALSO HEADS. PRIOR
TO JOINING INVESCO, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR
THIRTEEN YEARS, WHERE HE WAS AN ANALYST AND PORTFOLIO MANAGER. HE HOLDS AN MBA
FROM THE UNIVERSITY OF MISSOURI (ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY,
AND IS A CHARTERED FINANCIAL ANALYST. TIM HAS OVER 20 YEARS OF INVESTMENT
EXPERIENCE.
<PAGE>
BUT A FOCUS ON THE LONG-TERM
Although we could perhaps have enjoyed even larger short-term gains had we been
more aggressive in this reallocation, we have chosen to maintain our investments
in some of our leading large technology stocks. Certain of these firms,
especially those that compete on the Internet, have suffered setbacks as
short-term traders have rushed out with the same speed with which they rushed
in. We continue to find these companies compelling, however, if only because of
the enormous markets that are theirs to conquer.
We believe this is an exciting time to be an investor. Technology is changing
the competitive landscape to a greater degree, perhaps, than any of us have
experienced in our lifetimes. For those able to identify the winners, the
opportunities appear profound.
/s/Timothy J. Miller
Timothy J. Miller
Senior Vice President
<PAGE>
SMALL COMPANY GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
Due to the change in our reporting schedule, it was only quite recently that we
last reported to you on our progress. In the interim, little has changed in our
strategy, although the overall market environment has become somewhat more
challenging. Still, we remain encouraged that the factors behind our rewarding
gain over the last year appear in place to position us for further
opportunities.
For the one-year period ended July 31, 1999, the value of your shares rose
32.32%. This return far exceeded that of the Russell 2000 Index over the same
period, which rose just 7.41%. (Of course, past performance is not a guarantee
of future results.)(1),(2)
SMALL STOCKS REBOUND
As we noted in our last communication, our fund has benefited this year as
investors have finally returned to small-capitalization stocks after a long
period of favoring the largest companies. As a result, smaller-company indexes
such as the Russell 2000 had lagged behind larger-company indexes such as the
S&P 500, a situation which changed this past spring.(2)
This lag created attractive opportunities for small-capitalization investors,
however, which we have begun to realize this year. From our growth investing
standpoint, we were able to find smaller firms with high growth rates that were
valued substantially less than those of their larger counterparts. Indeed, as
the S&P 500 and other closely watched indexes have stalled over the past few
months due to interest rate concerns, we have continued to enjoy impressive
gains.(2)
Aside from our small-capitalization focus, our diversified approach to growth
investing has also aided the fund recently. Many of our top-performing stocks
have been in profitable growth niches of the economy, such as specialty
retailing or consulting to the rebounding oil and gas industries. This has
allowed us to avoid much of the recent downdraft in Internet stocks, for
example.
BALANCING DIVERSIFICATION AND FOCUS
Going forward, however, we will continue to balance this diversification with
our ongoing focus on the most dynamic areas of the economy. We will continue to
invest heavily in industries such as software and communications equipment,
which enjoy markets largely immune to economic slowdown at home or abroad.
Although these companies have garnered interest lately, their current valuations
remain very attractive relative to their larger counterparts, and we continue to
see a good deal of potential in the stocks.
/s/Stacie L. Cowell
Stacie L. Cowell
Vice President
- --------------------------------------------------------------------------------
FUND MANAGEMENT
STACIE L. COWELL, CFA
VICE PRESIDENT STACIE COWELL IS THE LEAD MANAGER OF SMALL COMPANY GROWTH FUND.
STACIE RECEIVED HER BA FROM COLGATE UNIVERSITY, AND HER MS IN FINANCE FROM THE
UNIVERSITY OF COLORADO AT DENVER. STACIE BEGAN HER INVESTMENT CAREER IN 1989,
AND SHE HAS MANAGED THIS FUND SINCE 1996. SHE IS A CERTIFIED FINANCIAL ANALYST.
SHE IS ASSISTED BY CO-MANAGERS TIMOTHY J. MILLER AND TRENT E. MAY.
<PAGE>
VALUE EQUITY FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
- --------------------------------------------------------------------------------
Dear Shareholder:
The first six months of this past reporting year were among the most challenging
in memory for value investors--especially when comparing returns with those
trumpeted in the newspaper. The market's recovery last fall masked a very narrow
advance by a limited number of (mostly large) companies. From our perspective,
the market appeared like a stretched rubber band, characterized by an ever
greater "valuation gap" between favored firms and the rest of the market.
VALUE SNAPS BACK
Not surprisingly, the market snapped back this spring. While we were unable to
recover all the ground we had earlier lost relative to the broader averages, our
performance over these last several months has been much more in line with the
broader markets. Indeed, given both recent developments in the economy and the
size of the valuation gap that remains, we are optimistic for our relative
performance going forward.
For the one-year period ended July 31, 1999, the value of your shares rose
8.05%. This return lagged that of the S&P 500 Index over the same period, which
rose 20.20%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
TOO MUCH PESSIMISM?
Given our focus on firms with low valuations relative to their earnings, many of
our holdings have been in established industries such as energy, basic materials
and capital goods. In the depths of the world economic slowdown last year, many
investors made an overly gloomy assessment, in our opinion, of the ramifications
of the crisis for companies in these industries.
As usually happens, however, the worst predictions did not come to pass, and the
world economy did not suffer a "meltdown." Indeed, as Asian and Latin American
economies restarted this spring, investors reconsidered and headed back into the
stocks of the companies that are the workhorses of the global economy. The
energy sector, in particular, bounced back, and we enjoyed strong appreciation
in several energy firms both in the United States and abroad.
- --------------------------------------------------------------------------------
FUND MANAGEMENT
MICHAEL C. HARHAI, CFA
MICHAEL HARHAI IS LEAD MANAGER OF VALUE EQUITY FUND. MIKE EARNED HIS BA FROM THE
UNIVERSITY OF SOUTH FLORIDA AND HIS MBA FROM THE UNIVERSITY OF CENTRAL FLORIDA.
HE BEGAN HIS CAREER IN 1972, JOINED INVESCO IN 1993, AND BEGAN MANAGING THIS
FUND THE SAME YEAR. HE IS A CHARTERED FINANCIAL ANALYST.
TERRENCE IRRGANG, CFA
TERRENCE IRRGANG IS ASSISTANT MANAGER OF VALUE EQUITY FUND. TERRY RECEIVED HIS
BA FROM GETTYSBURG COLLEGE AND HIS MBA FROM TEMPLE UNIVERSITY. HE BEGAN HIS
INVESTMENT CAREER IN 1981, JOINED INVESCO IN 1992, AND STARTED MANAGING THIS
FUND IN 1993. HE IS A CHARTERED FINANCIAL ANALYST.
<PAGE>
A NEW INTEREST RATE ENVIRONMENT
Changes in the domestic economy also helped alter conditions for value
investors. Fearing that inflationary pressures might be building in the economy
after eight years of expansion, the Federal Reserve Board began signaling in the
spring that it would raise interest rates--as it did by a modest amount in late
June. Higher interest rates caused investors to place more emphasis on present
rather than future earnings, which also helped many of the companies in our
portfolio that enjoy solid, if not rapidly growing, profits.
It is useful to set this development in context. As interest rates have fallen
throughout much of the 1990s, growth stocks have outperformed value stocks by
more than 4.50% per year--by some measures an unprecedented record. Should this
pattern of declining rates be reversed--or even simply end--value investors
should be well-positioned to enjoy greater relative performance.
Of course, should rising interest rates or other factors cause a dramatic and
broad pullback in the markets, no investor will be immune. Still, given that the
valuation "rubber band" is still stretched, we feel in a relatively advantageous
position no matter what the markets bring.
/s/Michael C. Harhai /s/Terrence Irrgang
Michael C. Harhai Terrence Irrgang
Portfolio Manager Portfolio Manager
<PAGE>
S&P 500 Index Fund (CLASS I AND CLASS II)
A Note about Index Funds at INVESCO
- --------------------------------------------------------------------------------
INVESCO S&P 500 Index Fund is designed to track the performance of the S&P 500
Composite Index, an index comprised of common stocks of U.S. companies that is
weighted to companies with large market capitalizations. The fund seeks to
attain its objective by investing in the common stocks that comprise the index
in approximately the same proportions as they are represented in the S&P 500
Index. Since beginning operations in December 1997, the assets in the portfolio
have grown, allowing the fund to own an increasingly representative selection of
shares. As a result, its performance has moved more in line with that of the
Index.
For the one-year period ended July 31, 1999, the value of Class I shares rose
20.40%, while the value of Class II shares rose 20.09%. These returns tracked
that of the S&P 500 Index over the same period, which rose 20.20%. (Keep in mind
that the index does not have expenses, which would have lowered its returns. And
of course, past performance is not a guarantee of future results.)(1),(2)
<PAGE>
INVESCO | Annual Report | July 31, 1999
MOVING FORWARD
- --------------------------------------------------------------------------------
A REVIEW AND STRATEGY SESSION WITH INVESCO SENIOR VICE PRESIDENT TIM MILLER. TIM
MANAGES DYNAMICS AND INVESCO ENDEAVOR FUNDS. IN ADDITION, HE LEADS OUR TEAM OF
GROWTH MANAGERS.
TIM, YOU LOOK FOR "BARRIERS TO ENTRY" WHEN SEARCHING FOR INVESTMENTS. WHAT ARE
THEY, AND HOW MIGHT THEY APPLY TO THE INTERNET, FOR EXAMPLE?
We broadly define barriers to entry as the advantages that allow industry
leaders to keep competitors at bay. They can include anything from proprietary
technology to marketing advantages. With them, leading firms are more likely to
retain their leadership positions, and the profits they enjoy are unlikely to be
bid down to the lowest possible level. The market for office software in the
1990s has certainly exhibited large barriers to entry, for example, which has
allowed Microsoft to continue to enjoy substantial profits.
This is an interesting question when it applies to the Internet, and I would
agree that many of the new "dot com" firms have little that is defensible in
their market positions. But other firms serving the growth of the Internet have
more distinct advantages. The Web hosting service Verio, for example, enjoys
unique arrangements with the Baby Bells that allow it special use of the
existing switching networks and other infrastructure. Large portals such as
Yahoo! are turning to Verio in increasing numbers because of the superior
service it can offer.
Leading equipment makers for the Internet also enjoy special advantages that
promise to widen their lead in the years to come. Many are familiar with the
fiber optic cables that enable the expansion of traffic over the Internet. While
many companies can lay these lines, very few have technology to make the
equipment that makes the lines function. We are very optimistic about JDS
Uniphase, which is the leading optoelectronics company supplying this equipment.
SO IS IT WORTH INVESTING IN INTERNET PORTALS AND CONTENT PROVIDERS?
We think so, due mainly to the importance of brand awareness. America Online is
one of the leading examples of an Internet firm that is widening its lead over
the competition as their subscriber numbers continue to grow rapidly. Their key
advantage comes simply from the fact that nearly all potential Internet users
know who they are, whereas few can name the number two and three providers.
Consumers ignore the competition and stick with America Online in the same way
they do with Coke--the difference comes in the scale of the growth ahead:
Virtually everyone already drinks cola, while there are millions waiting to sign
up for an Internet service.
DO YOU SEE THE RECENT RISE IN INTEREST RATES AS A THREAT TO THE MARKET?
Higher interest rates are clearly not favorable for stocks. But we have only
seen the Federal Reserve raise official interest rates by 0.50% so far (as of
August), and most are predicting that it might raise them by at most another
0.25% by the end of the year--and market interest rates already largely reflect
those increases. That would take us back to our pre-Asian financial crisis rate
levels--and the markets were quite healthy early last year. Also, we still see
very little evidence of inflation. Capacity utilization rates, for example,
remain at very manageable levels.
On the other hand, it is true that the markets have at least temporarily lost
the boost given them by declining interest rates. From now on, earnings will be
the key driver, and we are paying extra attention to the companies that will
deliver on that front.
<PAGE>
HEALTH CARE INVESTMENTS HAVE BEEN A DRAG ON MANY GROWTH PORTFOLIOS RECENTLY. DO
YOU SEE THAT TURNING AROUND?
To a certain extent, what has been good for the rest of the market has been bad
for health care firms, especially drug manufacturers. With earnings improving
for the rest of the market, many large pharmaceutical companies no longer stand
out for their healthy profits. Also, some worry that Medicare reform might
result in regulation and lower earnings. But in our opinion, business prospects
remain superb for the firms able to leverage their research and development.
They should also continue to prosper in any kind of economy--people don't stop
taking their medication in a recession--so they may serve as an ideal way to
provide stability to growth portfolios.
YEAR 2000 COMPUTER ISSUE.
(UNAUDITED)
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 | Annual Report |July 31, 1999
MOVING FORWARD
- --------------------------------------------------------------------------------
MARKET HEADLINES: AUGUST 1998 TO JULY 1999
The turnaround in the fall of 1998 may be remembered as one of the most striking
periods in stock market history. On the heels of the Asian financial crisis, the
markets seemed in a downward freefall, but a quick series of interest rate cuts
by the Federal Reserve Board provided a quick burst of confidence to
bargain-hunting investors.
Throughout the winter, the largest, fastest-growing companies led U.S. stock
market advances as investors kept one eye on the continuing problems overseas
and another on the blossoming technological promise of the American economy. The
firms most directly tied to technological innovations, such as
telecommunications companies and Internet providers, outdistanced the pack.
Meanwhile, cyclical issues suffered, as did many small or slower-growing company
stocks.
By the spring of 1999, however, the threat of economic overheating rather than
worldwide depression loomed largest in many investors' minds. Signs of renewed
economic strength abroad and remarkable growth figures at home led many to
believe that the Federal Reserve Board would soon reverse course and tighten the
money supply to cool down the economy--and indeed, market interest rates crept
upward. Too much growth rather than too little encouraged many to head for
cyclical industries poised to benefit from improving markets.
As the "cyclical rotation" continued, the market averages seemed to bounce
against a ceiling, putting an end to their dizzying ascent since the fall.
Although investors headed back into the market in June, reassured once again by
economic data that inflation was not an imminent threat, they headed back out in
July in response to disturbing information about employment costs. With
investors focusing one eye over the shoulders of the Federal Reserve on data
about inflationary pressures, and the other eye on impressive earnings reports,
the market seemed primed for more volatility ahead.
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 AND RUSSELL 2000 ARE
UNMANAGED INDEXES INDICATIVE OF DOMESTIC MID-CAPITALIZATION AND
SMALL-CAPITALIZATION STOCK PRICES, RESPECTIVELY.
<PAGE>
<TABLE>
<CAPTION>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO Stock Funds, Inc.
July 31, 1999
DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------
<S> <C>
Blue Chip Growth Fund
Intel Corp $ 62,825,880
America Online 61,016,980
Schwab (Charles) Corp 55,919,719
Warner-Lambert Co 53,796,600
General Electric 50,662,110
Coca-Cola Co 50,354,906
SBC Communications 49,969,294
Microsoft Corp 49,313,011
Lilly (Eli) & Co 49,269,937
Citigroup Inc 49,088,134
Dynamics Fund
EchoStar Communications Class A Shrs $ 57,257,225
Tandy Corp 48,921,338
AMFM Inc 42,000,000
Gemstar International Group 35,112,500
Harrah's Entertainment 35,059,062
COLT Telecom Group PLC Sponsored ADR Representing 4 Ord Shrs 31,543,750
NEXTLINK Communications Class A Shrs 31,148,325
JDS Uniphase 30,709,425
VISX Inc 26,325,000
St Jude Medical 26,031,250
INVESCO Endeavor Fund
America Online $ 4,756,250
Microsoft Corp 3,063,506
Altera Corp 2,942,050
Amazon.com Inc 2,741,712
eToys Inc 2,579,962
Schwab (Charles) Corp 2,555,625
Intel Corp 2,456,400
Yahoo! Inc 2,439,503
COLT Telecom Group PLC Sponsored ADR Representing 4 Ord Shrs 2,397,325
NIKE Inc Class B Shrs 2,314,000
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS (CONTINUED)
DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------
Growth & Income Fund
International Business Machines $ 2,713,593
Intel Corp 2,523,330
Microsoft Corp 2,374,432
Harrah's Entertainment 2,346,506
General Electric 2,078,630
Exxon Corp 2,053,034
BellSouth Corp 1,995,360
Coca-Cola Corp 1,897,733
Bristol-Myers Squibb 1,744,295
Johnson & Johnson 1,741,623
S&P 500 Index Fund
Microsoft Corp $ 2,614,707
General Electric 2,130,841
Intel Corp 1,369,512
International Business Machines 1,366,977
Cisco Systems 1,185,469
Lucent Technologies 1,164,554
Exxon Corp 1,152,446
Wal-Mart Stores 1,109,485
AT&T Corp 975,334
Merck & Co 939,096
Small Company Growth Fund
Genesys Telecommunications Laboratories $ 6,462,500
Business Objects SA Sponsored ADR Representing Ord Shrs 5,649,650
Pacific Sunwear of California 5,500,000
ANTEC Corp 5,397,356
Salem Communications Class A Shrs 4,880,400
Pinnacle Holdings 4,841,219
Priority Healthcare Class B Shrs 4,813,613
DII Group 4,799,594
Wild Oats Markets 4,728,750
Precision Drilling 4,643,625
Value Equity Fund
Bell Atlantic $ 9,683,625
Lowe's Cos 9,400,050
International Business Machines 9,049,500
Bristol-Myers Squibb 7,980,000
General Electric 7,902,500
Schering-Plough Corp 7,766,500
Fannie Mae 7,576,200
Merck & Co 7,520,081
Bank of America 7,391,786
Sun Microsystems 7,391,587
</TABLE>
Composition of holdings is subject to change.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENT SECURITIES
INVESCO Stock Funds, INC.
July 31, 1999
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
<S> <C> <C>
Blue Chip Growth Fund
100.00 COMMON STOCKS
4.10 BEVERAGES
Coca-Cola Co 834,900 $ 50,354,906
==========================================================================================
4.39 BROADCASTING
AT&T Corp-Liberty Media Group Class A Shrs(a) 346,200 12,809,400
Clear Channel Communications(a) 510,285 35,496,700
EchoStar Communications Class A Shrs(a) 83,800 5,729,825
==========================================================================================
54,035,925
3.83 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Lucent Technologies 350,100 22,778,381
Nokia Corp Sponsored ADR Representing Ord Shrs 147,000 12,504,188
Tellabs Inc(a) 191,500 11,789,219
==========================================================================================
47,071,788
13.52 COMPUTER RELATED
Cisco Systems(a) 611,270 37,975,149
COVAD Communications Group(a) 135,500 6,233,000
Dell Computer(a) 1,126,450 46,043,644
EMC Corp(a) 310,000 18,774,375
International Business Machines 62,500 7,855,469
Microsoft Corp(a) 574,660 49,313,011
==========================================================================================
166,194,648
4.12 ELECTRICAL EQUIPMENT
General Electric 464,790 50,662,110
==========================================================================================
0.56 ELECTRONICS
JDS Uniphase(a) 76,700 6,931,762
==========================================================================================
8.48 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 408,290 14,800,512
Intel Corp 910,520 62,825,880
Maxim Integrated Products(a) 416,075 26,654,805
==========================================================================================
104,281,197
8.54 FINANCIAL
Citigroup Inc 1,101,557 49,088,134
Schwab (Charles) Corp 1,269,100 55,919,719
==========================================================================================
105,007,853
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
19.23 HEALTH CARE DRUGS -- PHARMACEUTICALS
Bristol-Myers Squibb 666,830 $ 44,344,195
Lilly (Eli) & Co 750,780 49,269,937
Merck & Co 686,580 46,472,884
Pfizer Inc 1,253,505 42,540,826
Warner-Lambert Co 815,100 53,796,600
==========================================================================================
236,424,442
2.12 HOUSEHOLD PRODUCTS
Procter & Gamble 287,300 26,000,650
==========================================================================================
3.76 INSURANCE
American International Group 397,920 46,208,460
==========================================================================================
8.30 RETAIL
Amazon.com Inc(a) 131,200 13,128,200
eToys Inc(a) 176,600 7,052,962
Home Depot 597,855 38,150,622
Wal-Mart Stores 1,035,400 43,745,650
==========================================================================================
102,077,434
4.96 SERVICES
America Online(a) 641,440 61,016,980
==========================================================================================
0.69 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Teligent Inc Class A Shrs(a) 118,300 8,532,387
==========================================================================================
5.90 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 651,380 33,831,049
Allegiance Telecom(a) 272,050 13,687,516
MCI WorldCom(a) 303,400 25,030,500
==========================================================================================
72,549,065
7.50 TELEPHONE
BellSouth Corp 880,600 42,268,800
SBC Communications 873,780 49,969,294
==========================================================================================
92,238,094
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $968,340,512)
(Cost for Income Tax Purposes $980,705,395) $1,229,587,701
==========================================================================================
Dynamics Fund
92.59 COMMON STOCKS
1.37 AEROSPACE & DEFENSE
Alliant Techsystems(a) 181,500 $ 15,007,781
General Dynamics 283,100 19,056,169
==========================================================================================
34,063,950
3.54 BANKS
First Tennessee National 483,000 17,689,875
National Commerce Bancorp 735,000 16,399,687
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
North Fork Bancorp 930,000 $ 19,181,250
US Trust 211,700 19,053,000
Zions Bancorp 272,400 15,799,200
==========================================================================================
88,123,012
0.61 BIOTECHNOLOGY
Gilead Sciences(a) 94,650 7,335,375
MedImmune Inc(a) 100,000 7,987,500
==========================================================================================
15,322,875
5.39 BROADCASTING
AMFM Inc(a) 800,000 42,000,000
Citadel Communications(a) 423,925 13,565,600
EchoStar Communications Class A Shrs(a) 837,400 57,257,225
Hispanic Broadcasting(a) 300,000 21,356,250
==========================================================================================
134,179,075
3.15 CABLE
Cablevision Systems Class A Shrs(a) 150,000 10,471,875
Jones Intercable Class A Shrs(a) 440,000 20,322,500
NTL Inc(a) 225,000 23,371,875
USA Networks(a) 507,000 24,304,313
==========================================================================================
78,470,563
1.95 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 200,000 8,900,000
Comverse Technology(a) 337,500 25,502,344
Metromedia Fiber Network Class A Shrs(a) 440,000 14,135,000
==========================================================================================
48,537,344
9.59 COMPUTER RELATED
BroadVision Inc(a) 85,400 5,951,312
Citrix Systems(a) 152,000 7,913,500
COVAD Communications Group(a) 300,000 13,800,000
Exodus Communications(a) 188,000 22,571,750
Galileo International 250,000 12,796,875
Intuit Inc(a) 156,500 12,803,656
Legato Systems(a) 330,000 23,595,000
Lexmark International Group Class A Shrs(a) 122,000 7,686,000
Network Appliance(a) 313,340 17,077,030
NorthPoint Communications Group(a) 300,000 7,312,500
PSINet Inc(a) 350,000 18,101,571
Rhythms NetConnections(a) 235,000 10,222,500
Siebel Systems(a) 393,000 23,236,125
Synopsys Inc(a) 407,000 24,496,313
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Verio Inc(a) 295,000 $ 21,037,188
Whittman-Hart Inc(a) 408,000 10,327,500
==========================================================================================
238,928,820
1.96 ELECTRICAL EQUIPMENT
Grainger (W W) Inc 120,000 5,670,000
Molex Inc 535,000 18,691,562
Sanmina Corp(a) 375,000 24,492,188
==========================================================================================
48,853,750
1.31 ELECTRONICS
JDS Uniphase(a) 339,800 30,709,425
Waters Corp(a) 34,330 2,051,218
==========================================================================================
32,760,643
6.54 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 662,000 23,997,500
Conexant Systems(a) 100,000 6,287,500
Linear Technology 283,000 17,369,125
Maxim Integrated Products(a) 395,000 25,304,687
MIPS Technologies Class A Shrs(a) 354,000 13,098,000
PMC-Sierra Inc(a) 292,000 22,849,000
SDL Inc(a) 150,000 10,190,625
Vitesse Semiconductor(a) 322,000 20,567,750
Xilinx Inc(a) 372,000 23,203,500
==========================================================================================
162,867,687
0.92 ENTERTAINMENT
SFX Entertainment Class A Shrs(a) 513,000 22,988,813
==========================================================================================
1.95 EQUIPMENT -- SEMICONDUCTOR
KLA-Tencor Corp(a) 352,000 23,848,000
Teradyne Inc(a) 331,900 24,747,294
==========================================================================================
48,595,294
0.56 FINANCIAL
Ambac Financial Group 250,000 13,906,250
==========================================================================================
3.78 GAMING
Harrah's Entertainment(a) 1,645,000 35,059,062
MGM Grand(a) 423,000 19,114,312
Mandalay Resort Group(a) 1,155,000 19,707,187
Sun International Hotels Ltd(a) 500,000 20,375,000
==========================================================================================
94,255,561
4.52 HEALTH CARE RELATED
Bausch & Lomb 346,250 24,865,078
Biomet Inc 600,000 21,825,000
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Genzyme Corp-General Division(a) 240,000 $ 13,575,000
St Jude Medical(a) 700,000 26,031,250
VISX Inc(a) 260,000 26,325,000
==========================================================================================
112,621,328
0.96 HOUSEHOLD FURNITURE & APPLIANCES
Maytag Corp 343,000 23,881,375
==========================================================================================
2.78 INSURANCE
AFLAC Inc 540,000 25,042,500
Allmerica Financial(a) 180,000 10,653,750
Jefferson-Pilot Corp 142,000 10,374,875
Nationwide Financial Services Class A Shrs 374,525 16,151,391
Protective Life 195,000 6,959,062
==========================================================================================
69,181,578
3.55 INVESTMENT BANK/BROKER FIRM
Bear Stearns 125,000 5,289,063
Donaldson Lufkin & Jenrette(a) 450,000 9,703,125
E*TRADE Group(a) 327,000 9,850,875
Legg Mason 622,000 21,770,000
Lehman Brothers Holdings 100,000 5,375,000
Paine Webber Group 135,000 5,400,000
Price (T Rowe) Associates 505,000 17,675,000
Waddell & Reed Financial
Class A Shrs 235,700 5,980,888
Class B Shrs 292,000 7,300,000
==========================================================================================
88,343,951
1.38 LEISURE TIME
Premier Parks(a) 605,000 23,405,937
Royal Caribbean Cruises Ltd 235,000 11,045,000
==========================================================================================
34,450,937
0.69 OFFICE EQUIPMENT & SUPPLIES
Staples Inc(a) 600,000 17,325,000
==========================================================================================
8.21 OIL & GAS RELATED
Apache Corp 489,100 20,756,181
BJ Services(a) 590,000 18,031,875
Baker Hughes 725,000 25,239,062
Coflexip SA Sponsored ADR Representing 1/2 Ord Shr 349,500 15,465,375
Cooper Cameron(a) 405,300 14,692,125
Enron Oil & Gas 325,000 6,946,875
Global Industries Ltd(a) 750,000 8,250,000
Nabors Industries(a) 670,000 15,619,375
Noble Drilling(a) 600,000 13,612,500
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Petroleum Geo-Services A/S A Sponsored
ADR Representing Ord Shrs(a) 468,500 $ 9,370,000
Santa Fe International 585,000 12,211,875
Talisman Energy(a) 550,000 16,293,750
Transocean Offshore 350,000 10,740,625
Weatherford International(a) 440,000 17,242,500
==========================================================================================
204,472,118
1.20 PERSONAL CARE
Dial Corp 475,400 14,707,687
Estee Lauder Class A Shrs 320,000 15,220,000
==========================================================================================
29,927,687
1.41 PHOTOGRAPHY & IMAGING
Gemstar International Group(a) 530,000 35,112,500
==========================================================================================
0.88 POLLUTION CONTROL
Republic Services Class A Shrs(a) 1,090,000 22,004,375
==========================================================================================
2.23 PUBLISHING
Meredith Corp 500,000 17,968,750
New York Times Class A Shrs 475,000 18,673,437
Tribune Co 215,000 18,933,438
==========================================================================================
55,575,625
4.82 RETAIL
AnnTaylor Stores(a) 600,000 23,025,000
Circuit City Stores 500,000 23,625,000
eToys Inc(a) 200,000 7,987,500
Family Dollar Stores 432,500 9,055,469
Intimate Brands 171,780 7,397,276
Tandy Corp 953,400 48,921,338
==========================================================================================
120,011,583
1.14 SAVINGS & LOAN
Charter One Financial 910,000 23,546,250
St Paul Bancorp 200,000 4,850,000
==========================================================================================
28,396,250
5.38 SERVICES
Acxiom Corp(a) 415,000 11,153,125
Block (H & R) Inc 245,000 13,383,125
Concord EFS(a) 104,700 3,566,344
Harte-Hanks Inc 390,000 10,359,375
Lamar Advertising Class A Shrs(a) 427,900 17,383,437
Omnicom Group 260,000 18,427,500
Outdoor Systems(a) 550,000 18,390,625
Paychex Inc 347,500 9,751,719
VERITAS Software(a) 208,000 11,674,000
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
WPP Group PLC(a) 2,230,000 $ 19,977,678
==========================================================================================
134,066,928
3.38 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Crown Castle International(a) 938,700 19,771,369
VoiceStream Wireless(a) 574,000 25,901,750
Western Wireless Class A Shrs(a) 574,000 20,090,000
WinStar Communications(a) 350,000 18,375,000
==========================================================================================
84,138,119
0.81 TELECOMMUNICATIONS -- LONG DISTANCE
Allegiance Telecom(a) 401,700 20,210,531
==========================================================================================
5.71 TELEPHONE
Amdocs Ltd(a) 320,100 8,522,663
AT&T Canada Class B Shrs Depository Receipts(a) 325,000 20,495,313
CenturyTel Inc 371,250 15,870,937
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 350,000 31,543,750
Intermedia Communications(a) 545,800 15,043,612
McLeodUSA Inc(a) 659,200 19,652,400
NEXTLINK Communications Class A Shrs(a) 277,800 31,148,325
==========================================================================================
142,277,000
0.80 TEXTILE -- APPAREL MANUFACTURING
Jones Apparel Group(a) 610,000 20,053,750
==========================================================================================
0.12 TOYS
Hasbro Inc 116,550 3,030,300
==========================================================================================
TOTAL COMMON STOCKS (Cost $1,742,107,070) 2,306,934,572
==========================================================================================
0.55 PREFERRED STOCKS
0.55 AUTOMOBILES
Porsche AG Non-Voting Pfd (Cost $10,864,437) 5,500 13,863,061
==========================================================================================
6.86 SHORT-TERM INVESTMENTS
6.62 Commercial Paper
1.20 ELECTRICAL EQUIPMENT
General Electric, 4.900%, 8/2/1999 $ 30,000,000 30,000,000
==========================================================================================
5.42 FINANCIAL
American Express Credit, 5.070%, 8/4/1999 $ 45,000,000 45,000,000
Chevron USA, 5.080%, 8/4/1999 $ 50,000,000 50,000,000
General Motors Acceptance, 5.070%, 8/6/1999 $ 40,000,000 40,000,000
==========================================================================================
135,000,000
TOTAL COMMERCIAL PAPER (Cost $165,000,000) 165,000,000
==========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.24 Repurchase Agreements
Repurchase Agreement with State Street dated 7/30/1999
due 8/2/1999 at 4.960%, repurchased at $5,855,419
(Collaterized by US Treasury Bonds, due 8/15/2013
at 12.000%, value $5,998,371) (Cost $5,853,000) $ 5,853,000 $ 5,853,000
==========================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $170,853,000) 170,853,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,923,824,507)
(Cost for Income Tax Purposes $1,930,095,761) $2,491,650,633
==========================================================================================
INVESCO Endeavor Fund
94.65 COMMON STOCKS
1.43 AUTO PARTS
CSK Auto(a) 60,600 $ 1,537,725
==========================================================================================
1.11 BIOTECHNOLOGY
MedImmune Inc(a) 15,000 1,198,125
==========================================================================================
3.97 BROADCASTING
AMFM Inc(a) 41,700 2,189,250
Clear Channel Communications(a) 30,000 2,086,875
==========================================================================================
4,276,125
5.65 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Comverse Technology(a) 27,310 2,063,612
Digital Microwave(a) 88,100 1,046,187
Gilat Satellite Networks Ltd(a) 21,000 1,107,750
Nokia Corp Sponsored ADR Representing Ord Shrs 22,000 1,871,375
==========================================================================================
6,088,924
14.01 COMPUTER RELATED
3Com Corp(a) 75,000 1,809,375
COVAD Communications Group(a) 19,000 874,000
Exodus Communications(a) 9,000 1,080,562
Genesys Telecommunications Laboratories(a) 51,000 1,402,500
Mercury Interactive(a) 20,900 964,013
Microsoft Corp(a) 35,700 3,063,506
Siebel Systems(a) 34,000 2,010,250
Visual Networks(a) 30,000 1,081,875
WatchGuard Technologies(a) 31,000 375,875
Yahoo! Inc(a) 17,880 2,439,503
==========================================================================================
15,101,459
1.38 ELECTRICAL EQUIPMENT
General Electric 13,635 1,486,215
==========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.17 ELECTRONICS
JDS Uniphase(a) 14,000 $ 1,265,250
==========================================================================================
11.15 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 81,160 2,942,050
Applied Micro Circuits(a) 14,200 1,334,800
Intel Corp 35,600 2,456,400
LSI Logic(a) 33,000 1,660,312
Maxim Integrated Products(a) 23,000 1,473,438
Texas Instruments 7,095 1,021,680
Xilinx Inc(a) 18,000 1,122,750
==========================================================================================
12,011,430
1.56 ENTERTAINMENT
Time Warner 23,300 1,677,600
==========================================================================================
4.73 EQUIPMENT -- SEMICONDUCTOR
Applied Materials(a) 30,000 2,158,125
Photronics Inc(a) 33,900 953,438
Teradyne Inc(a) 26,700 1,990,819
==========================================================================================
5,102,382
5.60 FINANCIAL
Capital One Financial 27,600 1,279,950
Citigroup Inc 49,290 2,196,486
Schwab (Charles) Corp 58,000 2,555,625
==========================================================================================
6,032,061
2.15 FOOTWEAR
NIKE Inc Class B Shrs 44,500 2,314,000
==========================================================================================
4.04 HEALTH CARE DRUGS -- PHARMACEUTICALS
Pfizer Inc 28,530 968,237
SmithKline Beecham PLC Sponsored ADR Representing
5 Ord Shrs 32,000 1,922,000
Warner-Lambert Co 22,200 1,465,200
==========================================================================================
4,355,437
2.59 HEALTH CARE RELATED
Bausch & Lomb 22,000 1,579,875
VISX Inc(a) 12,000 1,215,000
==========================================================================================
2,794,875
1.17 INVESTMENT BANK/BROKER FIRM
Legg Mason 36,100 1,263,500
==========================================================================================
1.58 MANUFACTURING
Tyco International Ltd 17,400 1,699,763
==========================================================================================
5.34 OIL & GAS RELATED
Atwood Oceanics(a) 55,300 1,655,544
Evergreen Resources(a) 50,000 1,306,250
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Grey Wolf(a) 250,000 $ 578,125
Nabors Industries(a) 95,000 2,214,688
==========================================================================================
5,754,607
1.99 PAPER & FOREST PRODUCTS
Champion International 41,450 2,145,037
==========================================================================================
1.48 PHOTOGRAPHY & IMAGING
Gemstar International Group Ltd(a) 24,000 1,590,000
==========================================================================================
10.75 RETAIL
Amazon.com Inc(a) 27,400 2,741,712
eBay Inc(a) 6,300 615,431
eToys Inc(a) 64,600 2,579,962
Home Depot 25,800 1,646,362
Pacific Sunwear of California(a) 43,000 1,075,000
Tandy Corp 44,000 2,257,750
Topps Co(a) 75,000 670,313
==========================================================================================
11,586,530
5.46 SERVICES
America Online(a) 50,000 4,756,250
Travel Services International(a) 80,000 1,130,000
==========================================================================================
5,886,250
2.06 TELECOMMUNICATIONS -- LONG DISTANCE
Viatel Inc(a) 60,000 2,220,000
==========================================================================================
4.28 TELEPHONE
AT&T Canada Class B Shrs Depository Receipts(a) 35,200 2,219,800
COLT Telecom Group PLC Sponsored ADR Representing
4 Ord Shrs(a) 26,600 2,397,325
==========================================================================================
4,617,125
TOTAL COMMON STOCKS (Cost $92,230,420) 102,004,420
==========================================================================================
1.87 PREFERRED STOCKS
1.87 AUTOMOBILES
Porsche AG, Non-Voting Pfd (Cost $1,725,014) 800 2,016,445
==========================================================================================
3.48 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/30/1999
due 8/2/1999 at 4.960%, repurchased at $3,746,548
(Collateralized by US Treasury Bonds due 8/15/2013
at 12.000%, value $3,837,512)(Cost $3,745,000) $ 3,745,000 3,745,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $97,700,434)
(Cost for Income Tax Purposes $98,256,503) $ 107,765,865
==========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Growth & Income Fund
97.50 COMMON STOCKS
1.40 AUTOMOBILES
General Motors 14,100 $ 859,219
==========================================================================================
1.37 BANKS
Firstar Corp 32,100 836,606
==========================================================================================
4.00 BEVERAGES
Coca-Cola Co 31,465 1,897,733
PepsiCo Inc 14,055 549,902
==========================================================================================
2,447,635
0.71 BROADCASTING
Infinity Broadcasting Class A Shrs(a) 15,805 435,625
==========================================================================================
0.86 CHEMICALS
du Pont (E I) de Nemours 7,275 524,255
==========================================================================================
2.56 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Lucent Technologies 15,420 1,003,264
Nokia Corp Sponsored ADR Representing Ord Shrs 6,640 564,815
==========================================================================================
1,568,079
12.80 COMPUTER RELATED
Cisco Systems(a) 19,750 1,226,969
Dell Computer(a) 15,500 633,563
EMC Corp(a) 14,600 884,213
International Business Machines 21,590 2,713,593
Microsoft Corp(a) 27,670 2,374,432
==========================================================================================
7,832,770
3.40 ELECTRICAL EQUIPMENT
General Electric 19,070 2,078,630
==========================================================================================
0.55 ELECTRONICS
JDS Uniphase(a) 3,700 334,388
==========================================================================================
7.60 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 20,200 732,250
Intel Corp 36,570 2,523,330
Texas Instruments 9,680 1,393,920
==========================================================================================
4,649,500
0.94 ENTERTAINMENT
Time Warner 8,000 576,000
==========================================================================================
6.53 FINANCIAL
American Express 4,670 615,273
Citigroup Inc 38,767 1,727,554
Fannie Mae 11,705 807,645
Schwab (Charles) Corp 19,200 846,000
==========================================================================================
3,996,472
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
3.83 GAMING
Harrah's Entertainment 110,100 $ 2,346,506
==========================================================================================
10.95 HEALTH CARE DRUGS -- PHARMACEUTICALS
Bristol-Myers Squibb 26,230 1,744,295
Johnson & Johnson 18,905 1,741,623
Lilly (Eli) & Co 14,515 952,547
Merck & Co 16,840 1,139,857
Warner-Lambert Co 17,020 1,123,320
==========================================================================================
6,701,642
0.88 HEALTH CARE RELATED
Medtronic Inc 7,500 540,469
==========================================================================================
1.97 HOUSEHOLD FURNITURE & APPLIANCES
Maytag Corp 17,300 1,204,512
==========================================================================================
0.97 HOUSEHOLD PRODUCTS
Procter & Gamble 6,540 591,870
==========================================================================================
2.59 INSURANCE
American International Group 13,675 1,588,009
==========================================================================================
1.87 MANUFACTURING
Tyco International Ltd 11,690 1,141,967
==========================================================================================
6.05 OIL & GAS RELATED
Chevron Corp 13,245 1,208,606
Exxon Corp 25,865 2,053,034
Schlumberger Ltd 7,225 437,564
==========================================================================================
3,699,204
1.19 PAPER & FOREST PRODUCTS
Champion International 14,100 729,675
==========================================================================================
1.55 PERSONAL CARE
Gillette Co 21,610 946,788
==========================================================================================
10.40 RETAIL
Amazon.com Inc(a) 5,700 570,356
CVS Corp 18,660 928,335
Dayton Hudson 9,135 590,920
Home Depot 21,395 1,365,268
Safeway Inc(a) 23,670 1,275,221
Tandy Corp 6,600 338,663
Wal-Mart Stores 30,660 1,295,385
==========================================================================================
6,364,148
1.84 SERVICES
America Online(a) 6,200 589,775
Ecolab Inc 12,600 537,075
==========================================================================================
1,126,850
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.65 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Teligent Inc Class A Shrs(a) 5,500 $ 396,688
==========================================================================================
4.22 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 29,712 1,543,167
MCI WorldCom(a) 12,560 1,036,200
==========================================================================================
2,579,367
5.82 TELEPHONE
BellSouth Corp 41,570 1,995,360
SBC Communications 27,375 1,565,508
==========================================================================================
3,560,868
TOTAL COMMON STOCKS (Cost $52,502,373) 59,657,742
==========================================================================================
0.63 FIXED INCOME SECURITIES
0.63 PUBLISHING
Tribune Co, Exch Sub Deb, PHONES(b)
2.000%, 5/15/2029 (Cost $533,800) $ 340,000 385,475
==========================================================================================
1.87 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/30/1999
due 8/2/1999 at 4.960%, repurchased at $1,145,473
(Collateralized by US Treasury Bonds due 8/15/2013
at 12.000%, value $1,177,993) (Cost $1,145,000) $ 1,145,000 1,145,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $54,181,173)
(Cost for Income Tax Purposes $55,056,946) $ 61,188,217
==========================================================================================
S&P 500 Index Fund
92.05 COMMON STOCKS
1.12 AEROSPACE & DEFENSE
Boeing Co 5,656 $ 256,641
General Dynamics 634 42,676
Goodrich (B F) Co 410 17,015
Gulfstream Aerospace(a) 400 26,600
Lockheed Martin 2,256 78,537
Northrop Grumman 318 22,936
Raytheon Co Class B Shrs(a) 1,947 136,898
United Technologies 2,806 187,125
==========================================================================================
768,428
0.12 AIR FREIGHT
FDX Corp(a) 1,632 73,134
Laidlaw Inc 1,846 11,307
==========================================================================================
84,441
0.25 AIRLINES
AMR Corp(a) 920 59,685
Delta Air Lines 698 41,618
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Southwest Airlines 2,844 $ 52,614
US Airways Group(a) 513 18,276
==========================================================================================
172,193
0.22 ALUMINUM
Alcoa Inc 2,126 127,294
Reynolds Metals 400 22,650
==========================================================================================
149,944
0.35 AUTO PARTS
AutoZone Inc(a) 821 20,268
Cooper Tire & Rubber 411 9,247
Cummins Engine 100 6,469
Dana Corp 1,007 42,042
Genuine Parts 1,025 31,839
Goodyear Tire & Rubber 803 42,459
ITT Industries 517 19,323
Johnson Controls 412 28,248
Pep Boys-Manny Moe & Jack 300 4,988
TRW Inc 617 32,971
==========================================================================================
237,854
0.89 AUTOMOBILES
Ford Motor 7,088 344,654
General Motors 3,764 229,369
Navistar International(a) 400 17,775
PACCAR Inc 400 22,925
==========================================================================================
614,723
5.90 BANKS
AmSouth Bancorp 1,050 24,019
BB&T Corp 1,780 62,745
Bank of America 10,289 682,932
Bank of New York 4,494 165,997
Bank One 6,943 378,827
BankBoston Corp 1,690 79,324
Chase Manhattan 5,054 388,526
Comerica Inc 803 44,566
Fifth Third Bancorp 1,633 106,247
First Union 5,622 258,612
Firstar Corp 3,900 101,644
Fleet Financial Group 3,258 131,949
Huntington Bancshares 1,275 38,406
KeyCorp 2,588 81,522
Mellon Bank 3,034 102,397
Mercantile Bancorp 800 43,600
Morgan (J P) & Co 917 117,261
National City 3,680 109,480
Northern Trust 600 52,200
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
PNC Bank 1,700 $ 89,888
Regions Financial 1,200 42,675
Republic New York 530 36,968
Southtrust Corp 1,000 36,750
State Street 1,006 71,300
Summit Bancorp 900 33,300
SunTrust Banks 1,838 118,551
Synovus Financial 1,586 29,044
Union Planters 700 31,019
US Bancorp 4,183 130,196
Wachovia Corp 1,234 96,329
Wells Fargo 9,766 380,874
==========================================================================================
4,067,148
2.23 BEVERAGES
Anheuser-Busch Cos 2,722 214,868
Brown-Forman Corp Class B Shrs 400 24,800
Coca-Cola Co 14,524 875,979
Coca-Cola Enterprises 2,500 72,969
Coors (Adolph) Co Class B Shrs 100 5,325
PepsiCo Inc 8,696 340,231
==========================================================================================
1,534,172
0.32 BIOTECHNOLOGY
Amgen Inc(a) 2,874 220,939
==========================================================================================
0.46 BROADCASTING
CBS Corp(a) 4,062 178,474
Clear Channel Communications(a) 1,828 127,160
King World Productions(a) 400 13,950
==========================================================================================
319,584
0.37 BUILDING MATERIALS
Armstrong World Industries 100 5,500
Crane Co 350 8,881
Lowe's Cos 2,230 117,632
Masco Corp 1,916 57,001
Owens Corning 300 9,263
Sherwin-Williams Co 1,024 27,648
Vulcan Materials 600 26,400
==========================================================================================
252,325
0.61 CABLE
Comcast Corp Class A Shrs 4,398 169,323
MediaOne Group(a) 3,485 252,227
==========================================================================================
421,550
1.45 CHEMICALS
Air Products & Chemicals 1,244 41,596
Dow Chemical 1,349 167,276
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
du Pont (E I) de Nemours 6,643 $ 478,711
Eastman Chemical 411 21,244
Englehard Corp 720 16,065
Grace (W R) & Co(a) 420 7,901
Great Lakes Chemical 300 13,275
Hercules Inc 613 21,378
Nalco Chemical 400 20,575
PPG Industries 917 54,676
Praxair Inc 822 37,915
Rohm & Haas 1,276 54,390
Sigma-Aldrich Corp 614 20,646
Union Carbide 817 39,216
==========================================================================================
994,864
3.28 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 800 35,600
Advanced Micro Devices(a) 820 14,094
Andrew Corp(a) 413 8,260
General Instrument(a) 1,021 46,328
Harris Corp 411 12,458
Lucent Technologies 17,899 1,164,554
Motorola Inc 3,592 327,770
Nortel Networks 3,972 352,019
QUALCOMM Inc(a) 900 140,400
Scientific-Atlanta Inc 411 15,002
Tellabs Inc(a) 2,338 143,933
==========================================================================================
2,260,418
12.12 COMPUTER RELATED
Adobe Systems 310 26,582
Apple Computer(a) 918 51,121
Autodesk Inc 300 7,950
BMC Software(a) 1,300 70,037
Cabletron Systems(a) 922 11,122
Cisco Systems(a) 19,082 1,185,469
Compaq Computer 9,985 239,640
Computer Associates International 3,076 141,111
Compuware Corp(a) 2,100 58,275
Data General(a) 300 4,181
Dell Computer(a) 14,912 609,528
EMC Corp(a) 5,852 354,412
Gateway Inc(a) 800 60,950
Hewlett-Packard Co 5,983 626,345
International Business Machines 10,876 1,366,977
Microsoft Corp(a) 30,470 2,614,707
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Network Appliance(a) 400 $ 21,800
Novell Inc(a) 1,849 47,612
Oracle Corp(a) 8,516 324,140
Parametric Technology(a) 1,636 23,109
Peoplesoft Inc(a) 1,400 19,075
Seagate Technology(a) 1,434 38,539
Silicon Graphics(a) 1,026 18,147
Sun Microsystems(a) 4,604 312,497
3Com Corp(a) 2,148 51,821
Unisys Corp(a) 1,625 66,320
==========================================================================================
8,351,467
0.63 CONGLOMERATES
Fortune Brands 924 36,498
Monsanto Co 3,589 140,420
National Service Industries 100 3,531
Tenneco Inc 1,024 23,360
Unilever NV New York Registered Shrs 3,253 227,303
==========================================================================================
431,112
0.26 CONSUMER FINANCE
Countrywide Credit Industries 615 22,909
Household International 2,752 118,164
SLM Holding 900 40,950
==========================================================================================
182,023
0.00 CONSUMER -- JEWELRY, NOVELTIES & GIFTS
Jostens Inc 100 2,025
==========================================================================================
0.16 CONTAINERS
Ball Corp 100 4,844
Bemis Co 300 11,100
Crown Cork & Seal 618 18,115
Owens-Illinois Inc(a) 820 20,449
Sealed Air(a) 419 26,921
Temple-Inland Inc 300 18,975
Tupperware Corp 300 7,088
==========================================================================================
107,492
0.02 DISTRIBUTION
SUPERVALU Inc 600 13,650
==========================================================================================
1.87 ELECTRIC UTILITIES
AES Corp(a) 1,100 65,862
Ameren Corp 714 27,846
American Electric Power 1,125 39,797
CMS Energy 700 26,162
Carolina Power & Light 821 33,764
Central & South West 1,130 24,083
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
CINergy Corp 822 $ 24,609
Consolidated Edison 1,254 54,549
Constellation Energy Group 821 24,066
DTE Energy 720 28,170
Dominion Resources 1,026 45,208
Duke Energy 2,036 107,781
Edison International 2,053 51,967
Entergy Corp 1,434 43,468
FPL Group 919 49,569
FirstEnergy Corp 1,432 40,901
Florida Progress 500 20,469
GPU Inc 717 27,515
New Century Energies 600 20,812
Niagara Mohawk Holdings(a) 1,020 16,065
Northern States Power 800 18,000
PG&E Corp 2,261 71,504
PP&L Resources 823 23,816
PacifiCorp 1,741 31,773
PECO Energy 1,231 52,164
Public Service Enterprise Group 1,232 49,665
Reliant Energy 1,740 47,741
Southern Co 3,996 105,644
Texas Utilities 1,662 70,531
Unicom Corp 1,130 44,353
==========================================================================================
1,287,854
3.71 ELECTRICAL EQUIPMENT
Emerson Electric 2,491 148,682
General Electric 19,549 2,130,841
Grainger (W W) Inc 426 20,128
Honeywell Inc 684 81,952
Rockwell International 1,137 66,870
Solectron Corp(a) 1,400 90,213
Thomas & Betts 300 13,575
==========================================================================================
2,552,261
0.08 ELECTRONICS
EG&G Inc 300 10,069
PE Corp-PE Biosystems Group 600 33,638
Tektronix Inc 300 9,506
==========================================================================================
53,213
2.67 ELECTRONICS -- SEMICONDUCTOR
Intel Corp 19,848 1,369,512
LSI Logic(a) 720 36,225
Micron Technology(a) 1,430 88,839
National Semiconductor(a) 923 22,844
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Texas Instruments 2,256 $ 324,864
==========================================================================================
1,842,284
0.04 ENGINEERING & CONSTRUCTION
Fluor Corp 412 16,506
Foster Wheeler 100 1,219
McDermott International 300 8,456
==========================================================================================
26,181
1.67 ENTERTAINMENT
Disney (Walt) Co 12,129 335,064
Seagram Co Ltd 2,550 130,847
Time Warner 7,136 513,792
Viacom Inc Class B Shrs(a) 3,998 167,666
==========================================================================================
1,147,369
0.25 EQUIPMENT -- SEMICONDUCTOR
Applied Materials(a) 2,051 147,544
KLA-Tencor Corp(a) 412 27,913
==========================================================================================
175,457
3.75 FINANCIAL
American Express 2,605 343,209
Associates First Capital Class A Shrs 4,332 165,970
Capital One Financial 1,200 55,650
Citigroup Inc 19,879 885,858
Fannie Mae 5,897 406,893
Franklin Resources 1,500 57,187
Freddie Mac 4,056 232,713
MBIA Inc 512 29,312
MBNA Corp 4,743 135,175
Providian Financial 719 65,429
Schwab (Charles) Corp 4,722 208,063
==========================================================================================
2,585,459
1.47 FOODS
Archer-Daniels-Midland Co 3,341 46,774
Bestfoods Inc 1,588 77,415
Campbell Soup 2,500 110,000
ConAgra Inc 2,766 70,706
General Mills 804 66,581
Heinz (H J) Co 2,041 96,182
Hershey Foods 794 46,052
Kellogg Co 2,370 82,506
Nabisco Group Holdings 1,800 33,750
Pioneer Hi-Bred International 1,454 56,524
Quaker Oats 719 48,937
Ralston Purina 1,910 57,181
Sara Lee 5,230 115,060
Sysco Corp 1,824 59,622
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Wrigley (William) Jr Co 576 $ 45,900
==========================================================================================
1,013,190
0.13 FOOTWEAR
NIKE Inc Class B Shrs 1,591 82,732
Reebok International Ltd(a) 300 3,638
==========================================================================================
86,370
0.04 GAMING
Harrah's Entertainment(a) 714 15,217
Mirage Resorts(a) 1,025 14,414
==========================================================================================
29,631
0.15 GOLD & PRECIOUS METALS MINING
ASARCO Inc 100 1,775
Barrick Gold 2,152 39,947
Battle Mountain Gold 1,332 2,581
Freeport-McMoran Copper & Gold Class B Shrs 827 13,956
Homestake Mining 1,520 12,160
Newmont Mining 922 17,057
Placer Dome 1,833 18,674
==========================================================================================
106,150
0.03 HARDWARE & TOOLS
Snap-on Inc 300 10,500
Stanley Works 412 11,510
==========================================================================================
22,010
7.84 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 9,004 386,609
Allergan Inc 300 28,350
ALZA Corp(a) 592 28,786
American Home Products 7,754 395,454
Bristol-Myers Squibb 11,706 778,449
Johnson & Johnson 7,883 726,221
Lilly (Eli) & Co 6,528 428,400
Longs Drug Stores 100 3,444
Merck & Co 13,874 939,096
Pfizer Inc 22,347 758,401
Pharmacia & Upjohn 2,933 157,832
Schering-Plough Corp 8,662 424,438
Warner-Lambert Co 4,937 325,842
Watson Pharmaceuticals(a) 500 17,219
==========================================================================================
5,398,541
1.58 HEALTH CARE RELATED
Bard (C R) Inc 300 14,587
Bausch & Lomb 300 21,544
Baxter International 1,684 115,670
Becton Dickinson & Co 1,434 39,345
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Biomet Inc 616 $ 22,407
Boston Scientific(a) 2,256 91,509
Cardinal Health 1,519 103,672
Columbia/HCA Healthcare 3,690 82,102
Guidant Corp 1,694 99,205
HCR Manor Care(a) 600 12,225
HEALTHSOUTH Corp(a) 2,455 30,074
Humana Inc(a) 923 10,038
Mallinckrodt Inc 410 13,889
McKesson HBOC 1,586 49,265
Medtronic Inc 3,308 238,383
St Jude Medical(a) 413 15,358
Shared Medical Systems 100 5,988
Tenet Healthcare(a) 1,700 30,494
United Healthcare 924 56,364
Wellpoint Health Networks(a) 400 32,850
==========================================================================================
1,084,969
0.03 HOMEBUILDING
Centex Corp 300 10,106
Kaufman & Broad Home 300 6,244
Pulte Corp 300 6,806
==========================================================================================
23,156
0.08 HOUSEHOLD FURNITURE & APPLIANCES
Maytag Corp 413 28,755
Whirlpool Corp 400 28,675
==========================================================================================
57,430
1.51 HOUSEHOLD PRODUCTS
Black & Decker 513 29,626
Clorox Co 668 74,816
Colgate-Palmolive Co 3,188 157,407
Newell Rubbermaid 1,653 71,492
Procter & Gamble 7,782 704,271
==========================================================================================
1,037,612
2.93 INSURANCE
Aetna Inc 798 65,436
AFLAC Inc 1,500 69,562
Allstate Corp 4,664 165,572
American General 1,360 105,230
American International Group 7,256 842,603
Aon Corp 1,515 56,718
Chubb Corp 1,059 63,341
CIGNA Corp 1,247 109,970
Cincinnati Financial 845 31,793
Conseco Inc 1,941 55,925
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Hartford Financial Services Group 1,256 $ 67,824
Jefferson-Pilot Corp 515 37,627
Lincoln National 1,134 56,700
Loews Corp 576 40,392
MGIC Investment 675 33,286
Progressive Corp 419 53,527
SAFECO Corp 720 27,405
St Paul Cos 1,232 38,346
Torchmark Corp 720 23,670
UnumProvident Corp 1,430 74,003
==========================================================================================
2,018,930
0.17 INSURANCE BROKERS
Marsh & McLennan 1,568 119,168
==========================================================================================
0.78 INVESTMENT BANK/BROKER FIRM
Bear Stearns 710 30,042
Lehman Brothers Holdings 700 37,625
Merrill Lynch & Co 2,119 144,224
Morgan Stanley Dean Witter & Co 3,289 296,421
Paine Webber Group 800 32,000
==========================================================================================
540,312
0.09 IRON & STEEL
Allegheny Teledyne 1,024 21,952
Bethlehem Steel(a) 716 5,594
Nucor Corp 412 19,982
USX-US Steel Group 412 10,686
Worthington Industries 414 6,055
==========================================================================================
64,269
0.26 LEISURE TIME
Brunswick Corp 514 14,071
Carnival Corp 3,500 162,531
==========================================================================================
176,602
0.09 LODGING -- HOTELS
Hilton Hotels 1,435 18,745
Marriott International Class A Shrs 1,168 40,953
==========================================================================================
59,698
0.57 MACHINERY
Briggs & Stratton 100 6,019
Case Corp 420 20,002
Caterpillar Inc 2,044 119,829
Cooper Industries 517 28,370
Danaher Corp 700 39,944
Deere & Co 1,266 48,424
Dover Corp 1,246 49,217
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Ingersoll-Rand Co 1,023 $ 65,792
Milacron Inc 100 1,712
NACCO Industries Class A Shrs 100 7,825
Timken Co 400 6,600
==========================================================================================
393,734
0.00 MANUFACTURED HOUSING
Fleetwood Enterprises 100 2,306
==========================================================================================
1.86 MANUFACTURING
AlliedSignal Inc 3,179 205,642
Corning Inc 1,352 94,640
Eaton Corp 411 40,663
FMC Corp(a) 100 6,975
Illinois Tool Works 1,364 101,362
Millipore Corp 300 12,225
Minnesota Mining & Manufacturing 2,368 208,236
Pall Corp 618 13,017
Parker-Hannifin Corp 616 29,068
Raychem Corp 412 15,708
Textron Inc 808 66,458
Thermo Electron(a) 821 14,111
Tyco International Ltd 4,833 472,124
==========================================================================================
1,280,229
0.12 METALS MINING
Alcan Aluminium Ltd 1,332 40,127
Cyprus Amax Minerals 413 5,421
Inco Ltd 1,123 19,933
Phelps Dodge 300 17,794
==========================================================================================
83,275
0.67 NATURAL GAS
Coastal Corp 1,230 48,662
Columbia Energy Group 450 26,775
Consolidated Natural Gas 513 32,127
Eastern Enterprises 100 3,894
Enron Corp 2,109 179,660
NICOR Inc 300 11,588
ONEOK Inc 100 3,181
Peoples Energy 100 3,681
Sempra Energy 1,118 24,806
Sonat Inc 612 21,535
Williams Cos 2,510 105,577
==========================================================================================
461,486
0.67 OFFICE EQUIPMENT & SUPPLIES
Avery Dennison 614 37,684
IKON Office Solutions 819 10,801
Moore Ltd 412 3,425
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Office Depot(a) 2,100 $ 39,375
Pitney Bowes 1,590 101,164
Staples Inc(a) 2,600 75,075
Xerox Corp 3,928 191,490
==========================================================================================
459,014
5.70 OIL & GAS RELATED
Amerada Hess 513 30,363
Anadarko Petroleum 600 22,912
Apache Corp 513 21,770
Ashland Inc 400 15,200
Atlantic Richfield 1,911 172,109
Baker Hughes 1,894 65,935
Burlington Resources 925 40,873
Chevron Corp 3,931 358,704
Exxon Corp 14,519 1,152,446
Halliburton Co 2,496 115,128
Helmerich & Payne 300 7,669
Kerr-McGee Corp 516 26,574
Mobil Corp 4,615 471,884
Occidental Petroleum 2,047 40,044
Phillips Petroleum 1,473 75,583
Rowan Cos(a) 412 7,751
Royal Dutch Petroleum New York Registry 1.25 Gldr Shrs 12,608 769,088
Schlumberger Ltd 3,125 189,258
Sunoco Inc 500 15,250
Texaco Inc 3,077 191,736
USX-Marathon Group 1,689 51,303
Union Pacific Resources Group 1,535 27,342
Unocal Corp 1,462 58,023
==========================================================================================
3,926,945
0.87 PAPER & FOREST PRODUCTS
Boise Cascade 300 11,569
Champion International 513 26,548
Fort James 1,237 45,150
Georgia-Pacific Group 1,026 46,106
International Paper 2,392 122,291
Kimberly-Clark Corp 3,076 187,636
Louisiana-Pacific Corp 615 13,492
Mead Corp 515 21,115
Potlatch Corp 100 4,056
Westvaco Corp 614 18,075
Weyerhaeuser Co 1,231 79,630
Willamette Industries 516 23,220
==========================================================================================
598,888
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.57 PERSONAL CARE
Alberto-Culver Co Class B Shrs 300 $ 7,669
Avon Products 1,574 71,617
Gillette Co 6,536 286,358
International Flavors & Fragrances 615 27,867
==========================================================================================
393,511
0.20 PHOTOGRAPHY & IMAGING
Eastman Kodak 1,913 132,236
Polaroid Corp 300 6,900
==========================================================================================
139,136
0.22 POLLUTION CONTROL
Allied Waste Industries(a) 1,100 19,731
Browning-Ferris Industries 928 41,644
Waste Management 3,453 88,267
==========================================================================================
149,642
0.59 PUBLISHING
American Greetings Class A Shrs 410 12,044
Donnelley (R R) & Sons 720 25,200
Dow Jones & Co 513 25,586
Gannett Inc 1,686 121,813
Harcourt General 410 19,039
Knight-Ridder Inc 412 22,093
McGraw-Hill Cos 1,028 52,299
Meredith Corp 300 10,781
New York Times Class A Shrs 926 36,403
Times Mirror Series A Shrs 413 24,883
Tribune Co 617 54,335
==========================================================================================
404,476
0.47 RAILROADS
Burlington Northern Santa Fe 2,709 86,688
CSX Corp 1,143 55,364
Kansas City Southern Industries 700 38,675
Norfolk Southern 2,253 65,900
Union Pacific 1,462 79,405
==========================================================================================
326,032
0.58 RESTAURANTS
Darden Restaurants 721 15,727
McDonald's Corp 8,004 333,667
Tricon Global Restaurants(a) 821 33,404
Wendy's International 618 17,961
==========================================================================================
400,759
5.40 RETAIL
Albertson's Inc 2,466 122,529
Best Buy(a) 1,200 89,550
CVS Corp 2,226 110,743
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Circuit City Stores-Circuit City Group 1,028 $ 48,573
Consolidated Stores(a) 629 9,828
Costco Cos(a) 1,240 92,690
Dayton Hudson 2,486 160,813
Dillard's Inc Class A Shrs 615 18,950
Dollar General 1,218 32,201
Federated Department Stores(a) 1,238 63,525
Gap Inc 5,094 238,144
Great Atlantic & Pacific Tea 100 3,456
Home Depot 8,760 558,997
Kmart Corp(a) 2,768 40,136
Kohl's Corp(a) 1,000 76,062
Kroger Co(a) 4,834 127,195
Limited Inc 1,179 53,866
May Department Stores 2,028 78,458
Nordstrom Inc 800 25,150
Penney (J C) Co 1,464 64,050
Rite Aid 1,534 32,502
Safeway Inc(a) 2,800 150,850
Sears Roebuck & Co 2,257 91,409
TJX Cos 1,846 61,033
Tandy Corp 1,028 52,749
Toys "R" Us(a) 1,340 21,775
Walgreen Co 5,346 151,359
Wal-Mart Stores 26,260 1,109,485
Winn-Dixie Stores 821 32,532
==========================================================================================
3,718,610
0.21 SAVINGS & LOAN
Golden West Financial 315 30,220
Washington Mutual 3,361 115,324
==========================================================================================
145,544
2.34 SERVICES
America Online(a) 6,500 618,312
Automatic Data Processing 3,684 147,590
Block (H & R) Inc 515 28,132
Cendant Corp(a) 4,519 90,945
Ceridian Corp(a) 722 20,216
Computer Sciences(a) 802 51,629
Deluxe Corp 411 15,412
Dun & Bradstreet 824 26,162
Ecolab Inc 700 29,837
Electronic Data Systems 2,800 168,875
Equifax Inc 821 26,990
First Data 2,560 126,880
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
IMS Health 1,912 $ 53,297
Interpublic Group of Cos 1,436 60,312
Omnicom Group 1,043 73,923
Paychex Inc 1,400 39,288
Ryder System 400 9,425
Service Corp International 1,465 23,257
==========================================================================================
1,610,482
0.35 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 1,700 91,056
Sprint Corp-PCS Group Series 1 Shrs(a) 2,491 151,017
==========================================================================================
242,073
3.12 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 18,779 975,334
MCI WorldCom(a) 10,985 906,263
Sprint Corp 5,164 266,914
==========================================================================================
2,148,511
4.46 TELEPHONE
ALLTEL Corp 1,770 127,108
Ameritech Corp 6,519 477,517
Bell Atlantic 9,120 581,400
BellSouth Corp 11,102 532,896
CenturyTel Inc 800 34,200
Frontier Corp 1,023 56,713
GTE Corp 5,729 422,156
SBC Communications 11,604 663,604
US WEST 3,043 174,402
==========================================================================================
3,069,996
0.07 TEXTILE -- APPAREL MANUFACTURING
Fruit of the Loom Class A Shrs(a) 410 3,254
Liz Claiborne 400 15,525
Russell Corp 100 1,919
VF Corp 617 24,372
==========================================================================================
45,070
0.01 TEXTILE -- HOME FURNISHINGS
Springs Industries Class A Shrs 100 3,975
==========================================================================================
0.81 TOBACCO
Philip Morris 14,192 528,652
UST Inc 1,026 31,806
==========================================================================================
560,458
0.13 TOYS
Hasbro Inc 1,177 30,602
Mattel Inc 2,491 58,538
==========================================================================================
89,140
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.08 TRUCKS & PARTS
Delphi Automotive Systems 3,230 $ 58,140
==========================================================================================
TOTAL COMMON STOCKS (Cost $56,397,980) 63,405,900
==========================================================================================
7.95 SHORT-TERM INVESTMENTS
0.43 US Government Obligations
US Treasury Bills, 10/14/1999(c)
(Amortized Cost $297,184) $ 300,000 297,184
==========================================================================================
7.52 Repurchase Agreements
Repurchase Agreement with State Street dated
7/30/1999 due 8/2/1999 at 4.960%,
repurchased at $5,184,142 (Collateralized
by US Treasury Bonds, due 8/15/2013 at 12.000%,
value $5,311,810)(Cost $5,182,000) $ 5,182,000 5,182,000
==========================================================================================
TOTAL SHORT-TERM INVESTMENTS (Amortized Cost $5,479,184) 5,479,184
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $61,877,164)
(Cost for Income Tax Purposes $61,883,923) $ 68,885,084
==========================================================================================
Small Company Growth Fund
82.66 COMMON STOCKS & RIGHTS
1.72 AEROSPACE & DEFENSE
Aeroflex Inc(a) 163,700 $ 3,100,069
Alliant Techsystems(a) 23,000 1,901,812
Moog Inc Class A Shrs(a) 95,600 2,963,600
==========================================================================================
7,965,481
1.55 AUTO PARTS
CSK Auto(a) 150,200 3,811,325
O'Reilly Automotive(a) 79,000 3,367,375
==========================================================================================
7,178,700
1.65 BANKS
City National 74,180 2,540,665
Hudson United Bancorp 86,000 2,795,000
US Trust 26,000 2,340,000
==========================================================================================
7,675,665
1.85 BROADCASTING
Citadel Communications(a) 115,600 3,699,200
Salem Communications Class A Shrs(a) 174,300 4,880,400
==========================================================================================
8,579,600
0.44 BUILDING MATERIALS
Elcor Corp 50,000 2,056,250
==========================================================================================
5.72 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Advanced Fibre Communications(a) 87,000 1,446,375
ANTEC Corp(a) 128,700 5,397,356
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Digital Microwave(a) 374,400 $ 4,446,000
Excel Switching(a) 120,000 3,270,000
Gilat Satellite Networks Ltd(a) 87,600 4,620,900
Powerwave Technologies(a) 96,700 3,444,938
REMEC Inc(a) 174,150 2,187,759
Terayon Communication Systems(a) 45,000 1,760,625
==========================================================================================
26,573,953
14.81 COMPUTER RELATED
Advantage Learning Systems(a) 124,500 4,108,500
Business Objects SA Sponsored ADR
Representing Ord Shrs(a) 125,200 5,649,650
Electronics for Imaging(a) 50,000 2,740,625
Entrust Technologies(a) 82,000 2,460,000
Gadzoox Networks(a) 30,000 2,257,500
Genesys Telecommunications Laboratories(a) 235,000 6,462,500
InfoSpace.com Inc(a) 32,000 1,470,000
Internet Capital Group Rights(d) 2,020 0
Kronos Inc(a) 66,500 3,216,937
Macromedia Inc(a) 99,000 3,452,625
Mercury Interactive(a) 79,800 3,680,775
Metro Information Services(a) 79,100 1,359,531
MICROS Systems(a) 75,200 2,570,900
NetIQ Corp(a) 100,000 1,675,000
Netopia Inc(a) 90,000 2,238,750
OneMain.com Inc(a) 123,000 2,913,563
Packeteer Inc(a) 30,500 899,750
Peregrine Systems(a) 119,000 3,555,125
Primus Knowledge Solutions(a) 120,000 2,887,500
Research in Motion Ltd(a) 87,600 2,047,650
Rhythms NetConnections(a) 40,250 1,750,875
SoftNet Systems(a) 90,000 2,216,250
USWeb Corp(a) 90,310 1,890,866
Verity Inc(a) 33,000 1,633,500
Visual Networks(a) 109,100 3,934,419
WebTrends Corp(a) 50,300 1,659,900
==========================================================================================
68,732,691
0.52 CONSUMER FINANCE
Towne Services(a) 301,300 2,429,231
==========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.93 DISTRIBUTION
Insight Enterprises(a) 148,400 $ 4,303,600
==========================================================================================
1.61 ELECTRICAL EQUIPMENT
DII Group(a) 129,500 4,799,594
Universal Electronics(a) 93,600 2,655,900
==========================================================================================
7,455,494
1.19 ELECTRONICS
Anaren Microwave(a) 128,900 3,045,262
LeCroy Corp(a) 6,675 123,487
Mettler-Toledo International(a) 81,800 2,367,088
==========================================================================================
5,535,837
5.08 ELECTRONICS -- SEMICONDUCTOR
ANADIGICS Inc(a) 86,100 2,669,100
Applied Micro Circuits(a) 20,500 1,927,000
Cree Research(a) 24,800 1,534,500
Cypress Semiconductor(a) 200,000 4,000,000
Galileo Technology Ltd(a) 46,000 2,466,750
QLogic Corp(a) 14,400 2,403,000
TranSwitch Corp(a) 47,500 2,084,063
Unitrode Corp(a) 78,000 2,881,125
Zoran Corp(a) 148,000 3,626,000
==========================================================================================
23,591,538
0.65 ENTERTAINMENT
SFX Entertainment Class A Shrs(a) 66,900 2,997,956
==========================================================================================
2.75 EQUIPMENT -- SEMICONDUCTOR
American Xtal Technology(a) 97,000 2,982,750
Brooks Automation(a) 119,100 3,230,587
Cymer Inc(a) 105,000 3,327,187
Photronics Inc(a) 115,000 3,234,375
==========================================================================================
12,774,899
0.69 GAMING
Harrah's Entertainment(a) 151,200 3,222,450
==========================================================================================
3.75 HEALTH CARE DRUGS -- PHARMACEUTICALS
Accredo Health(a) 62,200 1,982,625
Alkermes Inc(a) 92,000 2,403,500
ChiRex Inc(a) 120,900 3,959,475
Priority Healthcare Class B Shrs(a) 99,764 4,813,613
Roberts Pharmaceutical(a) 154,750 4,245,953
==========================================================================================
17,405,166
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.87 HEALTH CARE RELATED
Laser Vision Centers(a) 15,600 $ 980,850
MedQuist Inc(a) 40,000 1,735,000
Pharmaceutical Product Development(a) 85,300 2,233,794
Province Healthcare(a) 162,400 2,740,500
ResMed Inc(a) 34,200 974,700
==========================================================================================
8,664,844
0.74 INSURANCE
HCC Insurance Holdings 151,800 3,443,962
==========================================================================================
1.22 INVESTMENT BANK/BROKER FIRM
Affiliated Managers Group(a) 140,000 4,112,500
National Discount Brokers Group(a) 41,200 1,573,325
==========================================================================================
5,685,825
0.92 LEISURE TIME
Action Performance(a) 51,200 1,772,800
Intrawest Corp 165,000 2,505,938
==========================================================================================
4,278,738
0.37 MANUFACTURING
Pentair Inc 40,000 1,737,500
==========================================================================================
5.88 OIL & GAS RELATED
Atwood Oceanics(a) 96,800 2,897,950
Basin Exploration(a) 127,500 2,677,500
Evergreen Resources(a) 132,500 3,461,562
Global Marine(a) 180,700 3,026,725
Louis Dreyfus Natural Gas(a) 134,200 2,566,575
Nabors Industries(a) 107,000 2,494,438
Newfield Exploration(a) 90,500 2,618,844
Precision Drilling(a) 203,000 4,643,625
Unit Corp(a) 375,000 2,929,688
==========================================================================================
27,316,907
0.59 PERSONAL CARE
Playtex Products(a) 170,000 2,720,000
==========================================================================================
0.76 RESTAURANTS
Papa John's International(a) 82,600 3,546,638
==========================================================================================
7.44 RETAIL
Ames Department Stores(a) 64,200 2,632,200
Children's Place(a) 67,100 2,667,225
Cost Plus(a) 50,000 2,200,000
Footstar Inc(a) 86,100 3,099,600
InterTAN Inc(a) 215,000 4,232,812
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Men's Wearhouse(a) 129,200 $ 3,213,850
Pacific Sunwear of California(a) 220,000 5,500,000
Sharper Image(a) 167,400 1,715,850
Tuesday Morning(a) 92,600 2,141,375
Wild Oats Markets(a) 130,000 4,728,750
Yankee Candle(a) 107,700 2,423,250
==========================================================================================
34,554,912
0.39 SAVINGS & LOAN
FirstFed Financial(a) 112,600 1,801,600
==========================================================================================
11.14 SERVICES
ACNielsen Corp(a) 105,000 3,038,437
AHL Services(a) 144,350 3,680,925
Corporate Executive Board(a) 47,300 1,791,487
Harte-Hanks Inc 136,900 3,636,406
Integrated Electrical Services(a) 72,000 1,215,000
InterVoice Inc(a) 221,200 3,345,650
IntraNet Solutions(a) 235,000 1,997,500
Jack Henry & Associates 68,220 2,950,515
Media Metrix(a) 43,700 1,676,988
NCO Group(a) 100,700 3,939,888
Navigant Consulting(a) 82,200 3,472,950
NetGravity Inc(a) 139,500 3,007,969
Pegasus Systems(a) 62,000 2,092,500
ProBusiness Services(a) 74,200 2,365,125
Profit Recovery Group International(a) 33,200 1,709,800
Provant Inc(a) 123,600 1,714,950
Safeguard Scientifics(a) 20,200 1,292,800
Sykes Enterprises(a) 140,000 3,928,750
Sylvan Learning Systems(a) 84,000 2,147,250
TSI International Software Ltd(a) 141,000 2,687,813
US Interactive Rights(d) 1,010 0
==========================================================================================
51,692,703
2.35 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Aironet Wireless Communications(a) 196,000 2,058,000
Metro One Telecommunications(a) 133,600 1,837,000
Pinnacle Holdings(a) 196,100 4,841,219
Proxim Inc(a) 39,900 2,167,069
==========================================================================================
10,903,288
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.64 TELECOMMUNICATIONS -- LONG DISTANCE
Dycom Industries(a) 52,450 $ 2,504,487
Orckit Communications Ltd(a) 90,000 2,767,500
Viatel Inc(a) 63,000 2,331,000
==========================================================================================
7,602,987
0.84 TELEPHONE
CTC Communications(a) 165,000 2,897,812
Inet Technologies(a) 41,200 999,100
==========================================================================================
3,896,912
0.84 TEXTILE -- APPAREL MANUFACTURING
Quiksilver Inc(a) 156,500 3,892,938
==========================================================================================
0.76 TEXTILE -- HOME FURNISHINGS
Linens 'n Things(a) 76,600 3,542,750
==========================================================================================
TOTAL COMMON STOCKS & RIGHTS (Cost $326,154,732) 383,761,015
==========================================================================================
17.34 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated
7/30/1999 due 8/2/1999 at 4.960%, repurchased
at $80,509,263 (Collateralized by US Treasury
Bonds, due 8/15/2013 at 12.000% and 5/15/2016
at 7.250%, respectively, value $82,399,128)
(Cost $80,476,000) $ 80,476,000 80,476,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $406,630,732)
(Cost for Income Tax Purposes $407,730,129) $ 464,237,015
==========================================================================================
Value Equity Fund
98.46 COMMON STOCKS
1.44 AEROSPACE & DEFENSE
Raytheon Co Class B Shrs 75,800 $ 5,329,687
==========================================================================================
1.81 AIRLINES
Southwest Airlines 362,550 6,707,175
==========================================================================================
1.69 AUTOMOBILES
Ford Motor 128,600 6,253,175
==========================================================================================
8.63 BANKS
Bank of America 111,364 7,391,786
Bank One 129,600 7,071,300
Chase Manhattan 71,600 5,504,250
Commerce Bancshares 66,600 2,688,975
First Union 60,000 2,760,000
State Street 26,000 1,842,750
Wachovia Corp 60,000 4,683,750
==========================================================================================
31,942,811
5.32 BUILDING MATERIALS
Lowe's Cos 178,200 9,400,050
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Sherwin-Williams Co 132,700 $ 3,582,900
Vulcan Materials 152,700 6,718,800
==========================================================================================
19,701,750
0.80 CABLE
MediaOne Group(a) 41,100 2,974,613
==========================================================================================
0.74 CHEMICALS
Dow Chemical 22,000 2,728,000
==========================================================================================
9.55 COMPUTER RELATED
Cadence Design Systems(a) 128,700 1,359,394
Compaq Computer 148,200 3,556,800
Computer Associates International 113,225 5,194,197
Compuware Corp(a) 86,800 2,408,700
International Business Machines 72,000 9,049,500
Oracle Corp(a) 167,500 6,375,469
Sun Microsystems(a) 108,900 7,391,587
==========================================================================================
35,335,647
1.82 CONGLOMERATES
Hanson PLC Sponsored ADR Representing 5 Ord Shrs 150,000 6,750,000
==========================================================================================
1.48 DISTRIBUTION
SUPERVALU Inc 240,000 5,460,000
==========================================================================================
4.07 ELECTRIC UTILITIES
DTE Energy 137,000 5,360,125
GPU Inc 45,000 1,726,875
Southern Co 135,000 3,569,063
TECO Energy 215,600 4,392,850
==========================================================================================
15,048,913
3.25 ELECTRICAL EQUIPMENT
General Electric 72,500 7,902,500
Rockwell International 70,000 4,116,875
==========================================================================================
12,019,375
0.97 ELECTRONICS -- SEMICONDUCTOR
Intel Corp 52,000 3,588,000
==========================================================================================
2.75 FINANCIAL
Associates First Capital Class A Shrs 67,408 2,582,569
Fannie Mae 109,800 7,576,200
==========================================================================================
10,158,769
10.95 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 94,000 4,036,125
American Home Products 100,000 5,100,000
Bristol-Myers Squibb 120,000 7,980,000
Merck & Co 111,100 7,520,081
Mylan Laboratories 138,000 3,139,500
Schering-Plough Corp 158,500 7,766,500
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Warner-Lambert Co 75,600 $ 4,989,600
==========================================================================================
40,531,806
1.66 HEALTH CARE RELATED
Biomet Inc 168,900 6,143,737
==========================================================================================
7.82 INSURANCE
American General 90,000 6,963,750
American International Group 44,225 5,135,628
Jefferson-Pilot Corp 86,362 6,309,824
MGIC Investment 100,000 4,931,250
Torchmark Corp 170,000 5,588,750
==========================================================================================
28,929,202
1.85 INSURANCE BROKERS
Marsh & McLennan 90,000 6,840,000
==========================================================================================
0.72 IRON & STEEL
Nucor Corp 55,200 2,677,200
==========================================================================================
0.54 MACHINERY
Dover Corp 50,600 1,998,700
==========================================================================================
2.94 MANUFACTURING
Federal Signal 90,400 1,937,950
Illinois Tool Works 30,000 2,229,375
Precision Castparts 10,000 393,750
Textron Inc 31,500 2,590,875
York International 83,700 3,740,344
==========================================================================================
10,892,294
2.06 OFFICE EQUIPMENT & SUPPLIES
Pitney Bowes 49,000 3,117,625
Xerox Corp 92,600 4,514,250
==========================================================================================
7,631,875
5.70 OIL & GAS RELATED
Exxon Corp 70,550 5,599,906
Norsk Hydro A/SA Sponsored ADR Representing
Ord Shrs 90,000 3,543,750
Repsol SA Sponsored ADR Representing Ord Shrs 316,200 6,541,387
Royal Dutch Petroleum New York Registry
1.25 Gldr Shrs 88,304 5,386,544
==========================================================================================
21,071,587
1.36 PAPER & FOREST PRODUCTS
Kimberly-Clark Corp 82,700 5,044,700
==========================================================================================
1.36 POLLUTION CONTROL
Browning-Ferris Industries 112,100 5,030,487
==========================================================================================
0.98 PUBLISHING
Gannett Co 50,000 3,612,500
==========================================================================================
1.34 RETAIL
Rite Aid 234,000 4,957,875
==========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
4.74 SERVICES
Deluxe Corp 109,000 $ 4,087,500
Dun & Bradstreet 230,000 7,302,500
Electronic Data Systems 64,800 3,908,250
GATX Corp 55,800 2,225,025
==========================================================================================
17,523,275
2.16 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 64,400 3,344,775
MCI WorldCom(a) 56,100 4,628,250
==========================================================================================
7,973,025
4.88 TELEPHONE
Ameritech Corp 75,000 5,493,750
Bell Atlantic 151,900 9,683,625
US WEST 50,000 2,865,625
==========================================================================================
18,043,000
1.28 TEXTILE -- APPAREL MANUFACTURING
VF Corp 120,000 4,740,000
==========================================================================================
1.09 TOBACCO
Philip Morris 108,200 4,030,450
==========================================================================================
0.71 TOYS
Mattel Inc 112,500 2,643,750
==========================================================================================
TOTAL COMMON STOCKS (Cost $226,018,149) 364,313,378
==========================================================================================
1.54 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/30/1999
due 8/2/1999 at 4.960%, repurchased at $5,688,350
(Collateralized by US Treasury Bonds due 8/15/2013
at 12.000%, value $5,824,924) (Cost $5,686,000) $ 5,686,000 5,686,000
==========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $231,704,149)(e) $ 369,999,378
==========================================================================================
</TABLE>
(a) Security is non-income producing.
(b) PHONES -- Participation Hybrid Option Notes Exchangeable Securities
(c) Security has been designated as collateral for futures contracts.
(d) Security has no market value at July 31, 1999.
(e) Also represents cost for income tax purposes.
See Notes to Financial Statements
<PAGE>
FUTURES CONTRACTS
Open at July 31, 1999
NUMBER OF FACE MARKET
POSITION CONTRACTS AMOUNT VALUE
- --------------------------------------------------------------------------------
S&P 500 Index Fund
S&P 500 Index
(Expires September 1999) Long 16 $ 4,000 $ 5,327,200
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO Stock Funds, Inc.
July 31, 1999
BLUE CHIP
GROWTH DYNAMICS
FUND FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 968,340,512 $ 1,923,824,507
==========================================================================================
At Value(a) $ 1,229,587,701 $ 2,491,650,633
Cash 5,298,089 3,851,561
Receivables:
Investment Securities Sold 38,855,835 12,071,000
Fund Shares Sold 3,399,231 20,501,950
Dividends and Interest 921,553 427,264
Prepaid Expenses and Other Assets 166,620 170,229
==========================================================================================
TOTAL ASSETS 1,278,229,029 2,528,672,637
==========================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 3,116 0
Investment Securities Purchased 43,824,407 48,658,732
Fund Shares Repurchased 1,133,410 7,942,490
Accrued Distribution Expenses 277,286 524,406
Accrued Expenses and Other Payables 83,048 65,354
==========================================================================================
TOTAL LIABILITIES 45,321,267 57,190,982
==========================================================================================
NET ASSETS AT VALUE $ 1,232,907,762 $ 2,471,481,655
==========================================================================================
NET ASSETS
Paid-in Capital(b) $ 863,038,638 $ 1,744,886,113
Accumulated Undistributed Net Investment Loss (49,145) (65,063)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency Transactions 108,671,080 158,834,479
Net Appreciation of Investment Securities and Foreign
Currency Transactions 261,247,189 567,826,126
==========================================================================================
NET ASSETS AT VALUE $ 1,232,907,762 $ 2,471,481,655
==========================================================================================
Shares Outstanding 182,560,140 127,469,815
NET ASSET VALUE, Offering and Redemption
Price per Share $ 6.75 $ 19.39
==========================================================================================
(a) Investment securities at cost and value at July 31, 1999 include a repurchase agreement
of $5,853,000 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 Blue Chip Growth Fund and 200
million have been allocated to Dynamics Fund.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO Stock Funds, Inc.
July 31, 1999
INVESCO
ENDEAVOR GROWTH &
FUND INCOME FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 97,700,434 $ 54,181,173
==========================================================================================
At Value(a) $ 107,765,865 $ 61,188,217
Cash 0 31,149
Receivables:
Investment Securities Sold 2,167,521 2,453,052
Fund Shares Sold 612,695 278,908
Dividends and Interest 15,715 45,689
Prepaid Expenses and Other Assets 56,955 52,920
==========================================================================================
TOTAL ASSETS 110,618,751 64,049,935
==========================================================================================
LIABILITIES
Payables:
Custodian 14,938 0
Investment Securities Purchased 583,000 2,568,428
Fund Shares Repurchased 462,916 148,791
Accrued Distribution Expenses 23,848 12,940
Accrued Expenses and Other Payables 2,119 3,885
==========================================================================================
TOTAL LIABILITIES 1,086,821 2,734,044
==========================================================================================
NET ASSETS AT VALUE $ 109,531,930 $ 61,315,891
==========================================================================================
NET ASSETS
Paid-in Capital(b) $ 89,592,887 $ 48,226,841
Accumulated Undistributed Net Investment Loss 0 (277)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency
Transactions 9,873,612 6,082,283
Net Appreciation of Investment Securities and
Foreign Currency Transactions 10,065,431 7,007,044
==========================================================================================
NET ASSETS AT VALUE $ 109,531,930 $ 61,315,891
==========================================================================================
Shares Outstanding 6,592,972 3,990,389
NET ASSET VALUE, Offering and Redemption
Price per Share $ 16.61 $ 15.37
==========================================================================================
(a) Investment securities at cost and value at July 31, 1999 include repurchase
agreements of $3,745,000 and $1,145,000 for INVESCO Endeavor and Growth & Income
Funds, respectively.
(b) The Fund has 2 billion authorized shares of common stock, par value of $0.01 per
share. Of such shares, 100 million have been allocated to INVESCO Endeavor Fund and
100 million have been allocated to Growth & Income Fund.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO Stock Funds, Inc.
July 31, 1999
S & P
500 INDEX
FUND
- ------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investment Securities:
At Cost(a) $ 61,877,164
==========================================================================================
At Value(a) $ 68,885,084
Receivables:
Investment Securities Sold 5,971
Fund Shares Sold 441,417
Dividends and Interest 12,271
Prepaid Expenses and Other Assets 17,341
==========================================================================================
TOTAL ASSETS 69,362,084
==========================================================================================
LIABILITIES
Payables:
Custodian 67,662
Distributions to Shareholders 2,500
Investment Securities Purchased 81,949
Fund Shares Repurchased 73,322
Variation Margin on Futures Contracts 74,674
Accrued Distribution Expenses - Class II 13,861
Accrued Expenses and Other Payables 14,860
==========================================================================================
TOTAL LIABILITIES 328,828
==========================================================================================
NET ASSETS AT VALUE $ 69,033,256
==========================================================================================
NET ASSETS
Paid-in Capital(b) $ 61,415,883
Accumulated Undistributed Net Investment Income 2,317
Accumulated Undistributed Net Realized Gain on Investment Securities,
Foreign Currency Transactions and Futures Contracts 695,480
Net Appreciation of Investment Securities and Futures Contracts 6,919,576
==========================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 69,033,256
==========================================================================================
NET ASSETS AT VALUE:
Class I $ 4,419,797
==========================================================================================
Class II $ 64,613,459
==========================================================================================
Shares Outstanding
Class I 311,109
Class II 4,489,306
NET ASSET VALUE, Offering and Redemption Price per Share
Class I $ 14.21
Class II $ 14.39
==========================================================================================
(a) Investment securities at cost and value at July 31, 1999 include a repurchase
agreement of $5,182,000.
(b) The Fund has 2 billion authorized shares of common stock, par value of $0.01 per
share. Of such shares, 100 million have been allocated to each individual class.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO Stock Funds, Inc.
July 31, 1999
SMALL VALUE
COMPANY EQUITY
GROWTH FUND FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 406,630,732 $ 231,704,149
==========================================================================================
At Value(a) $ 464,237,015 $ 369,999,378
Cash 64,682 652
Receivables:
Investment Securities Sold 15,166,796 0
Fund Shares Sold 1,967,989 751,297
Dividends and Interest 32,325 517,652
Prepaid Expenses and Other Assets 87,845 52,782
==========================================================================================
TOTAL ASSETS 481,556,652 371,321,761
==========================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 0 2,787
Investment Securities Purchased 21,932,782 917,978
Fund Shares Repurchased 6,612,918 305,548
Accrued Distribution Expenses 100,988 83,038
Accrued Expenses and Other Payables 48,762 30,904
==========================================================================================
TOTAL LIABILITIES 28,695,450 1,340,255
==========================================================================================
NET ASSETS AT VALUE $ 452,861,202 $ 369,981,506
==========================================================================================
NET ASSETS
Paid-in Capital(b) $ 349,717,318 $ 227,996,293
Accumulated Undistributed (Distribution in Excess of)
Net Investment Income (Loss) (22,140) (6,492)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency
Transactions 45,559,741 3,696,476
Net Appreciation of Investment Securities and
Foreign Currency Transactions 57,606,283 138,295,229
==========================================================================================
NET ASSETS AT VALUE $ 452,861,202 $ 369,981,506
==========================================================================================
Shares Outstanding 33,262,192 12,497,029
NET ASSET VALUE, Offering and Redemption
Price per Share $ 13.61 $ 29.61
==========================================================================================
(a) Investment securities at cost and value at July 31, 1999 include repurchase agreements
of $80,476,000 and $5,686,000 for Small Company Growth and Value Equity Funds,
respectively.
(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 Small Company Growth Fund
and 100 million have been allocated to Value Equity Fund.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS OPERATIONS
Blue Chip Growth Fund
PERIOD YEAR
ENDED ENDED
JULY 31 AUGUST 31
- ------------------------------------------------------------------------------------------
1999 1998
(Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 9,617,031 $ 11,263,873
Interest 271,592 148,388
Foreign Taxes Withheld (38,007) (108,534)
===========================================================================================
TOTAL INCOME 9,850,616 11,303,727
===========================================================================================
EXPENSES
Investment Advisory Fees 5,712,698 4,561,574
Distribution Expenses 2,630,696 2,027,117
Transfer Agent Fees 1,500,795 1,160,513
Administrative Fees 248,879 131,098
Custodian Fees and Expenses 118,441 108,512
Directors' Fees and Expenses 48,222 49,585
Professional Fees and Expenses 57,195 59,734
Registration Fees and Expenses 114,495 100,310
Reports to Shareholders 316,486 180,511
Other Expenses 101,468 49,665
===========================================================================================
TOTAL EXPENSES 10,849,375 8,428,619
Fees and Expenses Paid Indirectly (132,784) (93,130)
===========================================================================================
NET EXPENSES 10,716,591 8,335,489
===========================================================================================
NET INVESTMENT INCOME (LOSS) (865,975) 2,968,238
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 112,169,586 104,055,439
Foreign Currency Transactions 0 45,981
===========================================================================================
Total Net Realized Gain 112,169,586 104,101,420
===========================================================================================
Change in Net Appreciation (Depreciation) of
Investment Securities 233,360,777 (9,504,119)
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN
SECURITY TRANSACTIONS 345,530,363 94,597,301
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 344,664,388 $ 97,565,539
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
Dynamics Fund
PERIOD YEAR
ENDED ENDED
JULY 31 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 2,023,318 $ 5,260,908
Interest 1,947,447 3,806,182
Foreign Taxes Withheld (39,258) (39,151)
===========================================================================================
TOTAL INCOME 3,931,507 9,027,939
===========================================================================================
EXPENSES
Investment Advisory Fees 2,927,803 7,750,919
Distribution Expenses 1,413,582 3,613,324
Transfer Agent Fees 993,382 2,693,081
Administrative Fees 236,694 226,800
Custodian Fees and Expenses 79,363 243,127
Directors' Fees and Expenses 20,711 66,958
Professional Fees and Expenses 18,912 66,440
Registration Fees and Expenses 36,700 138,207
Reports to Shareholders 81,241 303,983
Other Expenses 9,441 45,889
===========================================================================================
TOTAL EXPENSES 5,817,829 15,148,728
Fees and Expenses Paid Indirectly (79,027) (234,356)
===========================================================================================
NET EXPENSES 5,738,802 14,914,372
===========================================================================================
NET INVESTMENT LOSS (1,807,295) (5,886,433)
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 110,481,800 57,564,185
Foreign Currency Transactions (179,590) (51,357)
===========================================================================================
Total Net Realized Gain 110,302,210 57,512,828
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 31,185,843 284,174,283
Foreign Currency Transactions 256,695 (1,078,803)
===========================================================================================
Total Net Appreciation 31,442,538 283,095,480
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 141,744,748 340,608,308
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 139,937,453 $ 334,721,875
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO Endeavor Fund
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1) (Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 57,353 $ 153,450
Interest 92,901 89,701
Foreign Taxes Withheld (750) (1,375)
===========================================================================================
TOTAL INCOME 149,504 241,776
===========================================================================================
EXPENSES
Investment Advisory Fees 173,488 206,836
Distribution Expenses 57,829 68,945
Transfer Agent Fees 57,863 52,532
Administrative Fees 12,209 9,217
Custodian Fees and Expenses 4,608 7,372
Directors' Fees and Expenses 2,560 3,025
Professional Fees and Expenses 5,201 17,809
Registration Fees and Expenses 21,052 23,652
Reports to Shareholders 9,066 10,330
Other Expenses 445 1,096
===========================================================================================
TOTAL EXPENSES 344,321 400,814
Fees and Expenses Paid Indirectly (3,255) (4,275)
===========================================================================================
NET EXPENSES 341,066 396,539
===========================================================================================
NET INVESTMENT LOSS (191,562) (154,763)
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 5,545,114 4,675,087
Foreign Currency Transactions (64) (200)
===========================================================================================
Total Net Realized Gain 5,545,050 4,674,887
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities (5,328,329) 15,473,389
Foreign Currency Transactions 18,935 (98,564)
===========================================================================================
Total Net Appreciation (Depreciation) (5,309,394) 15,374,825
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 235,656 20,049,712
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 44,094 $ 19,894,949
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
Growth & Income Fund
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1) (Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 137,302 $ 294,923
Interest 14,298 55,415
Foreign Taxes Withheld 0 (935)
===========================================================================================
TOTAL INCOME 151,600 349,403
===========================================================================================
EXPENSES
Investment Advisory Fees 107,949 209,172
Distribution Expenses 35,983 69,724
Transfer Agent Fees 47,918 70,040
Administrative Fees 8,442 12,517
Custodian Fees and Expenses 3,192 14,482
Directors' Fees and Expenses 2,450 5,297
Professional Fees and Expenses 4,647 18,142
Registration Fees and Expenses 31,610 65,749
Reports to Shareholders 8,152 15,211
Other Expenses 232 1,210
===========================================================================================
TOTAL EXPENSES 250,575 481,544
Fees and Expenses Absorbed by Investment Adviser (33,201) (53,659)
Fees and Expenses Paid Indirectly (2,072) (7,906)
===========================================================================================
NET EXPENSES 215,302 419,979
===========================================================================================
NET INVESTMENT LOSS (63,702) (70,576)
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities 2,936,850 5,112,480
Change in Net Appreciation of Investment Securities 107,107 6,899,937
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES 3,043,957 12,012,417
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,980,255 $ 11,941,841
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
S&P 500 Index Fund
YEAR
ENDED
JULY 31
- -------------------------------------------------------------------------------------------
1999
<S> <C>
INVESTMENT INCOME
INCOME
Dividends $ 537,825
Interest 177,443
Foreign Taxes Withheld (6,610)
===========================================================================================
TOTAL INCOME 708,658
===========================================================================================
EXPENSES
Investment Advisory Fees 108,359
Distribution Expenses-Class II 99,282
Transfer Agent Fees 78,792
Administrative Fees 20,844
Custodian Fees and Expenses 22,356
Directors' Fees and Expenses 9,330
Professional Fees and Expenses 15,747
Registration Fees and Expenses
Class I 21,610
Class II 31,285
Reports to Shareholders 27,060
Other Expenses 1,689
===========================================================================================
TOTAL EXPENSES 436,354
Fees and Expenses Absorbed by Investment Adviser (185,078)
Fees and Expenses Paid Indirectly (14,152)
===========================================================================================
NET EXPENSES 237,124
===========================================================================================
NET INVESTMENT INCOME 471,534
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities and Foreign Currency Transactions 163,561
Futures Contracts 514,495
===========================================================================================
Total Net Realized Gain 678,056
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 6,282,321
Futures Contracts (70,540)
===========================================================================================
Total Net Appreciation 6,211,781
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES, FOREIGN
CURRENCY TRANSACTIONS AND FUTURES CONTRACTS 6,889,837
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,361,371
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
SMALL COMPANY GROWTH FUND
PERIOD YEAR
ENDED ENDED
JULY 31 MAY 31
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 35,128 $ 244,603
Interest 532,995 2,179,990
Foreign Taxes Withheld (1,337) (2,455)
===========================================================================================
TOTAL INCOME 566,786 2,422,138
===========================================================================================
EXPENSES
Investment Advisory Fees 512,934 1,973,393
Distribution Expenses 177,839 657,798
Transfer Agent Fees 327,104 1,116,282
Administrative Fees 33,164 54,324
Custodian Fees and Expenses 14,103 62,805
Directors' Fees and Expenses 4,741 21,595
Professional Fees and Expenses 13,736 31,952
Registration Fees and Expenses 16,974 69,165
Reports to Shareholders 51,453 177,855
Other Expenses 1,311 14,054
===========================================================================================
TOTAL EXPENSES 1,153,359 4,179,223
Fees and Expenses Absorbed by Investment Adviser (84,361) (201,069)
Fees and Expenses Paid Indirectly (8,856) (35,321)
===========================================================================================
NET EXPENSES 1,060,142 3,942,833
===========================================================================================
NET INVESTMENT LOSS (493,356) (1,520,695)
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 25,477,829 22,194,189
Foreign Currency Transactions 0 106,985
===========================================================================================
Total Net Realized Gain 25,477,829 22,301,174
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 23,498,647 17,430,661
Foreign Currency Transactions 0 (13,154)
===========================================================================================
Total Net Appreciation 23,498,647 17,417,507
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 48,976,476 39,718,681
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 48,483,120 $ 38,197,986
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (CONTINUED)
Value Equity Fund
PERIOD YEAR
ENDED ENDED
JULY 31 AUGUST 31
- -------------------------------------------------------------------------------------------
1999 1998
(Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 6,413,414 $ 7,314,414
Interest 607,639 987,978
Foreign Taxes Withheld (78,146) (73,487)
===========================================================================================
TOTAL INCOME 6,942,907 8,228,905
===========================================================================================
EXPENSES
Investment Advisory Fees 2,756,316 3,080,351
Distribution Expenses 918,772 520,628
Transfer Agent Fees 1,011,717 918,694
Administrative Fees 89,785 71,607
Custodian Fees and Expenses 53,145 61,090
Directors'/Trustees' Fees and Expenses 24,562 29,153
Professional Fees and Expenses 26,325 28,494
Registration Fees and Expenses 50,573 83,210
Reports to Shareholders 119,709 82,270
Other Expenses 16,461 15,529
===========================================================================================
TOTAL EXPENSES 5,067,365 4,891,026
Fees and Expenses Absorbed by Investment Adviser (397,754) (164,235)
Fees and Expenses Paid Indirectly (32,463) (26,514)
===========================================================================================
NET EXPENSES 4,637,148 4,700,277
===========================================================================================
NET INVESTMENT INCOME 2,305,759 3,528,628
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 3,751,288 39,715,930
Foreign Currency Transactions (680) 218
===========================================================================================
Total Net Realized Gain 3,750,608 39,716,148
===========================================================================================
Change in Net Appreciation (Depreciation) of Investment Securities
and Foreign Currency Transactions 81,638,227 (45,560,535)
===========================================================================================
NET GAIN (LOSS) ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 85,388,835 (5,844,387)
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 87,694,594 $ (2,315,759)
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund
PERIOD YEAR YEAR
ENDED ENDED ENDED
JULY 31 AUGUST 31 AUGUST 31
- -------------------------------------------------------------------------------------------
1999 1998 1997
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (865,975) $ 2,968,238 $ 1,584,172
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 112,169,586 104,101,420 185,903,395
Change in Net Appreciation
(Depreciation) of Investment
Securities 233,360,777 (9,504,119) (23,243,958)
===========================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 344,664,388 97,565,539 164,243,609
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (2,912,112) (1,500,483)
In Excess of Net Investment Income (69,191) 0 0
Net Realized Gain on Investment
Securities (84,849,471) (187,061,864) (84,751,427)
===========================================================================================
TOTAL DISTRIBUTIONS (84,918,662) (189,973,976) (86,251,910)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 1,033,836,692 547,827,536 647,469,283
Reinvestment of Distributions 75,265,536 168,012,124 77,405,695
===========================================================================================
1,109,102,228 715,839,660 724,874,978
Amounts Paid for Repurchases of
Shares (883,678,836) (584,913,034) (690,372,256)
===========================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 225,423,392 130,926,626 34,502,722
===========================================================================================
TOTAL INCREASE IN NET ASSETS 485,169,118 38,518,189 112,494,421
NET ASSETS
Beginning of Period 747,738,644 709,220,455 596,726,034
===========================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in
Excess of) Net Investment Income
(Loss) of ($49,145), $34,771 and
($24,778), respectively) $ 1,232,907,762 $ 747,738,644 $ 709,220,455
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 160,399,762 94,746,511 113,639,331
Shares Issued from Reinvestment
of Distributions 12,459,923 34,540,804 14,903,327
===========================================================================================
172,859,685 129,287,315 128,542,658
Shares Repurchased (135,422,302) (101,276,736) (121,110,949)
===========================================================================================
NET INCREASE IN FUND SHARES 37,437,383 28,010,579 7,431,709
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Dynamics Fund
PERIOD YEAR YEAR
ENDED ENDED ENDED
JULY 31 APRIL 30 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (1,807,295) $ (5,886,433) $ (4,623,573)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 110,302,210 57,512,828 220,083,978
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 31,442,538 283,095,480 236,377,288
===========================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 139,937,453 334,721,875 451,837,693
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 0 (115,015,920) (133,519,730)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 869,941,998 2,129,570,413 1,320,495,638
Reinvestment of Distributions 0 113,049,160 130,727,993
869,941,998 2,242,619,573 1,451,223,631
===========================================================================================
Amounts Paid for Repurchases of
Shares (582,718,812) (1,758,303,356) (1,191,638,369)
===========================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 287,223,186 484,316,217 259,585,262
===========================================================================================
TOTAL INCREASE IN NET ASSETS 427,160,639 704,022,172 577,903,225
NET ASSETS
Beginning of Period 2,044,321,016 1,340,298,844 762,395,619
===========================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss
of ($65,063), ($61,368) and
($37,999), respectively) $ 2,471,481,655 $ 2,044,321,016 $ 1,340,298,844
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 45,635,822 135,833,566 88,367,135
Shares Issued from Reinvestment
of Distributions 0 8,011,923 9,785,039
===========================================================================================
45,635,822 143,845,489 98,152,174
Shares Repurchased (30,807,994) (112,899,930) (79,868,425)
===========================================================================================
NET INCREASE IN FUND SHARES 14,827,828 30,945,559 18,283,749
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INVESCO Endeavor Fund
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1) (Note 1)
<S> <C> <C>
OPERATIONS
Net Investment Loss $ (191,562) $ (154,763)
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 5,545,050 4,674,887
Change in Net Appreciation (Depreciation) of
Investment Securities and Foreign Currency
Transactions (5,309,394) 15,374,825
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 44,094 19,894,949
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 82,344,436 154,292,260
Amounts Paid for Repurchases of Shares (45,448,995) (101,594,814)
===========================================================================================
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 36,895,441 52,697,446
===========================================================================================
TOTAL INCREASE IN NET ASSETS 36,939,535 72,592,395
NET ASSETS
Beginning of Period (Note 1) 72,592,395 0
===========================================================================================
End of Period (Including Accumulated Undistributed Net
Investment Loss of $0 and ($154,763),
respectively) $ 109,531,930 $ 72,592,395
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold (Note 1) 4,829,435 11,384,455
Shares Repurchased (2,684,902) (6,936,016)
===========================================================================================
NET INCREASE IN FUND SHARES 2,144,533 4,448,439
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Growth & Income Fund
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- -------------------------------------------------------------------------------------------
1999 1999(a)
(Note 1)
<S> <C> <C>
OPERATIONS
Net Investment Loss $ (63,702) $ (70,576)
Net Realized Gain on Investment Securities 2,936,850 5,112,480
Change in Net Appreciation of Investment Securities 107,107 6,899,937
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 2,980,255 11,941,841
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities 0 (1,833,046)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 19,917,033 103,261,159
Reinvestment of Distributions 0 1,763,814
===========================================================================================
19,917,033 105,024,973
Amounts Paid for Repurchases of Shares (15,575,219) (61,389,946)
===========================================================================================
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 4,341,814 43,635,027
===========================================================================================
TOTAL INCREASE IN NET ASSETS 7,322,069 53,743,822
===========================================================================================
NET ASSETS
Initial Subscription (Note 1) 0 250,000
Beginning of Period 53,993,822 0
===========================================================================================
End of Period (Including Accumulated Undistributed
Net Investment Loss of ($277) and ($186),
respectively) $ 61,315,891 $ 53,993,822
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) 0 25,000
Shares Sold 1,304,788 8,250,996
Shares Issued from Reinvestment of Distributions 0 137,476
===========================================================================================
1,304,788 8,413,472
Shares Repurchased (1,027,866) (4,700,005)
===========================================================================================
NET INCREASE IN FUND SHARES 276,922 3,713,467
===========================================================================================
(a) From July 1, 1998, commencement of investment operations, to April 30, 1999.
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 Index Fund
PERIOD PERIOD
ENDED ENDED
JULY 31 JULY 31
- -------------------------------------------------------------------------------------------
1999 1998
(Note 1)
<S> <C> <C>
OPERATIONS
Net Investment Income $ 471,534 $ 91,804
Net Realized Gain on Investment Securities,
Foreign Currency Transactions and Futures
Contracts 678,056 132,729
Change in Net Appreciation of Investment Securities
and Futures Contracts 6,211,781 707,795
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 7,361,371 932,328
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Class I (52,661) (21,188)
Class II (418,861) (68,129)
Net Realized Gain on Investment Securities, Foreign
Currency Transactions and Futures Contracts
Class I (11,013) 0
Class II (104,474) 0
===========================================================================================
TOTAL DISTRIBUTIONS (587,009) (89,317)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Class I 1,376,114 14,330,953
Class II 65,043,426 17,781,602
Reinvestment of Distributions
Class I 63,674 21,188
Class II 514,657 66,331
===========================================================================================
66,997,871 32,200,074
Amounts Paid for Repurchases of Shares
Class I (764,087) (12,386,716)
Class II (22,298,285) (3,332,974)
===========================================================================================
(23,062,372) (15,719,690)
===========================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 43,935,499 16,480,384
===========================================================================================
TOTAL INCREASE IN NET ASSETS 50,709,861 17,323,395
NET ASSETS
Initial Subscription (Note 1) 0 1,000,000
Beginning of Period 18,323,395 0
===========================================================================================
End of Period (Including Accumulated Undistributed
Net Investment Income of $2,317 and $2,494,
respectively) $ 69,033,256 $ 18,323,395
===========================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 Index Fund (Continued)
PERIOD PERIOD
ENDED ENDED
JULY 31 JULY 31
- -------------------------------------------------------------------------------------------
1999 1998
(Note 1)
<S> <C> <C>
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1)
Class I 0 90,000
Class II 0 10,000
Shares Sold
Class I 100,399 1,263,674
Class II 4,876,896 1,509,441
Shares Issued from Reinvestment of Distributions
Class I 4,741 1,782
Class II 37,760 5,493
===========================================================================================
5,019,796 2,880,390
===========================================================================================
Shares Repurchased
Class I (65,360) (1,084,127)
Class II (1,666,513) (283,771)
===========================================================================================
(1,731,873) (1,367,898)
===========================================================================================
NET INCREASE IN FUND SHARES 3,287,923 1,512,492
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Small Company Growth Fund
PERIOD YEAR YEAR
ENDED ENDED ENDED
JULY 31 MAY 31 MAY 31
- -------------------------------------------------------------------------------------------
1999 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (493,356) $ (1,520,695) $ (1,309,186)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 25,477,829 22,301,174 74,467,963
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions 23,498,647 17,417,507 (10,293,630)
===========================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 48,483,120 38,197,986 62,865,147
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 0 (26,845,319) (70,523,447)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 206,787,274 606,918,472 517,944,195
Reinvestment of Distributions 0 26,316,463 68,478,048
Net Assets Received from Acquisition
of Small Company Value Fund (Note 3) 37,196,562 0 0
===========================================================================================
243,983,836 633,234,935 586,422,243
Amounts Paid for Repurchases
of Shares (157,715,200) (599,096,847) (600,416,027)
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 86,268,636 34,138,088 (13,993,784)
===========================================================================================
TOTAL INCREASE (DECREASE) IN
NET ASSETS 134,751,756 45,490,755 (21,652,084)
NET ASSETS
Beginning of Period 318,109,446 272,618,691 294,270,775
===========================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss
of ($22,140), ($21,512) and
($15,689), respectively) $ 452,861,202 $ 318,109,446 $ 272,618,691
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 15,863,285 54,131,470 38,262,375
Shares Issued from Reinvestment of
Distributions 0 2,518,300 6,425,767
Shares Issued in Connection with
Acquisition of Small Company Value
Fund (Note 3) 3,019,096 0 0
===========================================================================================
18,882,381 56,649,770 44,688,142
Shares Repurchased (11,949,112) (53,229,883) (44,729,581)
===========================================================================================
NET INCREASE (DECREASE) IN
FUND SHARES 6,933,269 3,419,887 (41,439)
===========================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Value Equity Fund
PERIOD YEAR YEAR
ENDED ENDED ENDED
JULY 31 AUGUST 31 AUGUST 31
- -------------------------------------------------------------------------------------------
1999 1998 1997
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income $ 2,305,759 $ 3,528,628 $ 4,046,156
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 3,750,608 39,716,148 20,055,067
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions 81,638,227 (45,560,535) 57,254,344
===========================================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 87,694,594 (2,315,759) 81,355,567
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (2,294,923) (3,546,111) (4,071,368)
In Excess of Net Investment Income (5,812) (11,054) 0
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (31,654,557) (26,588,368) (5,507,949)
===========================================================================================
TOTAL DISTRIBUTIONS (33,955,292) (30,145,533) (9,579,317)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 275,439,791 451,339,743 517,380,902
Reinvestment of Distributions 33,721,744 28,948,214 9,315,225
===========================================================================================
309,161,535 480,287,957 526,696,127
Amounts Paid for Repurchases
of Shares (342,903,195) (467,608,421) (428,752,415)
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (33,741,660) 12,679,536 97,943,712
===========================================================================================
TOTAL INCREASE (DECREASE) IN
NET ASSETS 19,997,642 (19,781,756) 169,719,962
NET ASSETS
Beginning of Period 349,983,864 369,765,620 200,045,658
===========================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in
Excess of) Net Investment Income
(Loss) of ($6,492), ($10,836) and
$17,483, respectively) $ 369,981,506 $ 349,983,864 $ 369,765,620
===========================================================================================
------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 9,361,699 15,256,421 20,198,347
Shares Issued from Reinvestment
of Distributions 1,186,215 1,058,632 378,067
===========================================================================================
10,547,914 16,315,053 20,576,414
Shares Repurchased (11,678,504) (15,751,418) (16,506,962)
===========================================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (1,130,590) 563,635 4,069,452
===========================================================================================
See Notes to Financial Statements
</TABLE>
178
<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 seven separate Funds: Blue Chip Growth Fund,
Dynamics Fund, INVESCO Endeavor Fund, Growth & Income Fund, S&P 500 Index Fund,
Small Company Growth Fund and Value Equity Fund. On August 4, 1998, the board of
directors of the Fund approved a name change to INVESCO Stock Funds, Inc. The
Fund's fiscal year-end was changed from April 30 to July 31. INVESCO Endeavor
Fund commenced investment operations on October 28, 1998. The Fund is registered
under the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company.
On May 20, 1999, shareholders of Blue Chip Growth, S&P 500 Index, Small Company
Growth and Value Equity Funds approved an Agreement and Plan of Conversion and
Termination whereby Blue Chip Growth Fund, formerly the sole portfolio
constituting INVESCO Growth Funds, Inc., S&P 500 Index Fund, formerly one of the
portfolios constituting INVESCO Specialty Funds, Inc., Small Company Growth
Fund, formerly the sole portfolio constituting INVESCO Emerging Opportunity
Funds, Inc. and Value Equity Fund, formerly one of the portfolios constituting
INVESCO Value Trust Funds, Inc. (collectively, the "Old Funds") were reorganized
into the Fund, effective July 15, 1999.
The business and operations of the Old Funds were assumed and carried on by the
Fund without any change in investment objectives or policies. As part of the
reorganization, the Blue Chip Growth, Small Company Growth and Value Equity
Funds' fiscal year-ends were changed from August 31, May 31 and August 31,
respectively, to July 31.
The investment objectives of the Funds are: To seek long-term capital growth
for Blue Chip Growth and Small Company Growth Funds; to seek appreciation of
capital for Dynamics, INVESCO Endeavor and Growth & Income Funds; to provide
both price performance and income comparable to the Standard and Poor's 500
composite stock index for the S&P 500 Index Fund; and to achieve a high total
return on investments through capital appreciation and current income for Value
Equity Fund.
The S&P 500 Index Fund offers two classes of shares, referred to as Class I
shares and Class II shares. Class I shares are not subject to any distribution
fees, while Class II shares are subject to an annual distribution fee of 0.25%
of the Fund's annual average net assets attributable to Class II shares. Income,
expenses (other than those attributable to a specific class) and gains and
losses are allocated daily to each class of shares based on the relative
proportion of net assets represented by such class. Operating expenses directly
attributable to a specific class are charged against operations of that class.
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.
<PAGE>
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. FUTURES CONTRACTS -- S&P 500 Index Fund may enter into futures contracts for
non-speculative purposes. Upon entering into a contract, S&P 500 Index Fund
deposits and maintains as collateral such initial margin as may be required by
the exchanges on which the transaction is effected. Pursuant to the contracts,
S&P 500 Index Fund agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by S&P 500 Index Fund
as variation margin receivable or payable on futures contracts. During the
period the futures contracts are open, changes in the value of the contracts are
recognized on a daily basis to reflect the market value of the contracts at the
end of each day's trading and are recorded as unrealized gain or loss. When the
contract is closed, S&P 500 Index Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed. S&P 500 Index Fund's use of futures
contracts may subject it to certain risks as a result of unanticipated movements
in the market. In addition, there can be no assurance that a liquid secondary
market will exist for any contract purchased or sold.
C. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to ensure
its market value exceeds the current market value of the repurchase agreements
including accrued interest. 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.
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.
<PAGE>
The Fund may have elements of risk due to investments in specific industries or
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.
S&P 500 Index and Value Equity Funds incurred and elected to defer post-October
31 net foreign currency losses of $187 and $676, respectively, to the year ended
July 31, 2000.
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. Of the ordinary income distributions declared for the period ended
July 31, 1999, 0.11%, 90.85% and 66.81% for Blue Chip Growth Fund, S&P 500 Index
Fund and Value Equity Fund, respectively, qualified for the dividends received
deduction available to the Fund's corporate 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 market
discounts, amortized premiums, foreign currency transactions, nontaxable
dividends, net operating losses and expired capital loss carryforwards.
For the period ended July 31, 1999, the effects of such differences were as
follows:
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED NET REALIZED
NET GAIN ON
INVESTMENT INVESTMENT
FUND INCOME SECURITIES
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $ 851,250 $ (851,250)
Dynamics Fund 1,803,600 (1,803,600)
INVESCO Endeavor Fund 346,325 (346,325)
Growth & Income Fund 63,611 (63,611)
S & P 500 Index Fund (189) 189
Small Company Growth Fund 492,728 (492,728)
Value Equity Fund (680) 680
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
<PAGE>
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 Fund or Class bears expenses incurred specifically on its
behalf and, in addition, each Fund or Class bears a portion of general expenses,
based on the relative net assets of each Fund or Class.
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 Blue
Chip Growth and Dynamics Funds, and Distribution Fees for Blue Chip Growth 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.
For the period ended July 31, 1999, Fees and Expenses Paid Indirectly consisted
of the following:
CUSTODIAN FEES DISTRIBUTION
FUND AND EXPENSES FEES
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $ 118,232 $ 14,552
Dynamics Fund 79,027 0
INVESCO Endeavor Fund 3,255 0
Growth & Income Fund 2,072 0
S&P 500 Index Fund 14,152 0
Small Company Growth Fund 8,856 0
Value Equity Fund 32,463 0
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
- -------------------------------------------------------------------------------------------
$700 $2 $4 $6
$0 TO $350 TO MILLION BILLION BILLION BILLION OVER
$350 $700 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION MILLION BILLION BILLION BILLION BILLION BILLION
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Blue Chip Growth
Fund 0.60% 0.55% 0.50% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
Dynamics Fund 0.60% 0.55% 0.50% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
Small Company
Growth Fund 0.75% 0.65% 0.55% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
AVERAGE NET ASSETS
- -------------------------------------------------------------------------------------------
$500 $1 $2 $4 $6
$0 TO MILLION BILLION BILLION BILLION BILLION OVER
$500 TO $1 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION BILLION BILLION BILLION BILLION BILLION BILLION
- -------------------------------------------------------------------------------------------
INVESCO Endeavor
Fund(b) 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Growth & Income
Fund(b) 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Value Equity Fund 0.75% 0.65% 0.50% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
</TABLE>
<PAGE>
S&P 500 Index Fund's investment advisory fee is based on the annual rate of
0.25% of average net assets.
(a) These additional contractual breakpoints became effective May 13, 1999.
(b) 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 became contractual and is computed at the above rates.
In accordance with a Sub-Advisory Agreement between IFG and World Asset
management ("World"), unaffiliated with any IFG entity, investment decisions of
S&P 500 Index Fund are made by World. A separate Sub-Advisory Agreement between
IFG and INVESCO Capital Management, Inc. ("ICM"), an affiliate of IFG,
investment decisions of Value Equity Fund are made by ICM. Fees for such
sub-advisory services are paid by IFG.
A plan of distribution pursuant to Rule 12b-1 of the Act (the "Plan") 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
July 31, 1999, Blue Chip Growth, Dynamics, INVESCO Endeavor, Growth & Income,
S&P 500 Index - Class II, Small Company Growth and Value Equity Funds paid the
Distributor $2,507,538, $1,291,398, $49,244, $34,245, $88,491, $138,369 and
$915,156, 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 to absorb certain fees and expenses incurred by
Growth & Income, S&P 500 Index, Small Company Growth and Value Equity Funds.
A 1% redemption fee is retained by S&P 500 Index Fund to offset transaction
costs and other expenses associated with short-term redemptions and exchanges.
The fee is imposed on redemptions or exchanges of shares held less than three
months. The redemption fee is accounted for as an addition to Paid-in Capital by
S&P 500 Index Fund. Total redemption fees received by S&P 500 Index Fund for the
year ended July 31, 1999 were $33,197.
NOTE 3 -- ACQUISITION OF INVESCO DIVERSIFIED FUNDS, INC. -- SMALL COMPANY VALUE
FUND ("TARGET FUND"). On June 4, 1999, Small Company Growth Fund acquired all
the net assets of the Target Fund pursuant to an Agreement and Plan of
Reorganization and Termination approved by the Target Fund shareholders on May
20, 1999. The acquisition was accomplished by a tax-free exchange of 3,019,096
shares of Small Company Growth Fund (valued at $37,196,562) for 3,719,526 shares
of the Target Fund outstanding on June 4, 1999. The Target Fund's net assets at
that date ($37,196,562) including $3,216,394 of unrealized appreciation were
combined with those of Small Company Growth Fund. The aggregate net assets of
Small Company Growth Fund and the Target Fund immediately before the acquisition
were $341,636,283 and $37,196,562, respectively. The net assets of Small Company
Growth Fund after the acquisition were $378,832,845.
NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended
July 31, 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:
<PAGE>
FUND PURCHASES SALES
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $1,636,446,248 $1,500,237,376
Dynamics Fund 739,823,788 471,630,753
INVESCO Endeavor Fund 74,672,373 39,279,224
Growth & Income Fund 29,212,878 25,775,403
S&P 500 Index Fund 41,684,828 870,276
Small Company Growth Fund 171,921,698 137,480,550
Value Equity Fund 83,034,987 147,177,538
There were no purchases or sales of U.S. Government securities.
NOTE 5 -- APPRECIATION AND DEPRECIATION. At July 31, 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
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $ 274,703,513 $ 25,821,207 $ 248,882,306
Dynamics Fund 597,656,093 36,101,221 561,554,872
INVESCO Endeavor Fund 15,030,252 5,520,890 9,509,362
Growth & Income Fund 7,789,648 1,658,377 6,131,271
S&P 500 Index Fund 9,068,811 2,067,650 7,001,161
Small Company Growth Fund 66,822,580 10,315,694 56,506,886
Value Equity Fund 145,245,276 6,950,047 138,295,229
NOTE 6 -- Transactions With Affiliates. Certain of the Funds' officers and
directors are also officers and directors of IFG or IDI. At July 31, 1999,
10.76% of outstanding shares of S&P 500 Index Fund - Class I were held by IFG or
affiliated parties.
Each Fund has adopted an unfunded defined benefit deferred compensation plan
covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 50% of the sum of the
retainer fee at the time of retirement plus the meeting attendance fees.
Pension expenses for the period ended July 31, 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
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $ 16,332 $ 33,980 $ 86,632
Dynamics Fund 5,161 37,426 102,477
Growth & Income Fund 96 491 770
S&P 500 Index Fund 272 463 727
Small Company Growth Fund 812 13,812 39,638
Value Equity Fund 7,843 11,070 31,559
Pension expenses, unfunded accrued pension costs and pension liabilities were
insignificant for the period ended July 31, 1999, for INVESCO Endeavor Fund.
The independent directors have contributed to a deferred fee agreement plan,
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
<PAGE>
Funds. The deferred amounts may be invested in the shares of any of the INVESCO
Funds, excluding the INVESCO Variable Investment Funds.
NOTE 7 -- 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 July
31, 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 INVESCO Blue Chip Growth Fund
(formerly the sole portfolio constituting INVESCO Growth Fund, Inc.), INVESCO
Dynamics Fund, INVESCO Endeavor Fund, INVESCO Growth and Income Fund, INVESCO
S&P 500 Index Fund (formerly one of the portfolios constituting INVESCO
Specialty Funds, Inc.), INVESCO Small Company Growth Fund (formerly the sole
portfolio constituting INVESCO Emerging Opportunity Funds, Inc.) and INVESCO
Value Equity Fund (formerly one of the portfolios constituting INVESCO Value
Trust Funds, Inc.), collectively 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 July 31, 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 July 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Denver, Colorado
August 25, 1999
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Blue Chip Growth Fund
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31 YEAR ENDED AUGUST 31
- -----------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 5.15 $ 6.06 $ 5.44 $ 5.33 $ 5.34 $ 5.28
===============================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income(b) 0.00 0.02 0.01 0.03 0.05 0.03
Net Gains on Securities
(Both Realized and
Unrealized) 2.11 0.69 1.39 0.95 0.49 0.11
===============================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 2.11 0.71 1.40 0.98 0.54 0.14
===============================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income(c) 0.00 0.02 0.01 0.03 0.05 0.03
Distributions from Capital Gains 0.51 1.60 0.77 0.84 0.50 0.05
===============================================================================================
TOTAL DISTRIBUTIONS 0.51 1.62 0.78 0.87 0.55 0.08
===============================================================================================
Net Asset Value --
End of Period $ 6.75 $ 5.15 $ 6.06 $ 5.44 $ 5.33 $ 5.34
===============================================================================================
TOTAL RETURN 42.06%(d) 13.42% 28.14% 20.23% 12.05% 2.52%
RATIOS
Net Assets -- End of Period
($000 Omitted) $1,232,908 $747,739 $709,220 $596,726 $501,285 $488,411
Ratio of Expenses to Average
Average Net Asset 1.03%(e)(f) 1.04%(e) 1.07%(e) 1.05%(e) 1.06% 1.03%
Ratio of Net Investment Income
to Average Net Assets (0.08%)(f) 0.37% 0.22% 0.64% 1.07% 0.47%
Portfolio Turnover Rate 134%(d) 153% 286% 207% 111% 63%
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income for the period ended July 31, 1999, aggregated less
than $0.01 on a per share basis.
(c) Distributions in excess of net investment income for the period ended July
31, 1999 and for the year ended August 31, 1995, aggregated less than $0.01
on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Dynamics Fund
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31 YEAR ENDED APRIL 30
- ----------------------------------------------------------------------------------------------------------
1999(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 18.15 $ 16.41 $ 12.02 $ 13.61 $ 11.38 $ 10.15
==========================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) 0.00 0.00 (0.05) (0.04) 0.02 0.03
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 1.24 3.04 6.39 (0.19) 3.94 1.34
==========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.24 3.04 6.34 (0.23) 3.96 1.37
==========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income(c) 0.00 0.00 0.00 0.00 0.02 0.03
Distributions from Capital Gains 0.00 1.30 1.95 1.36 1.71 0.11
==========================================================================================================
TOTAL DISTRIBUTIONS 0.00 1.30 1.95 1.36 1.73 0.14
==========================================================================================================
Net Asset Value --
End of Period $ 19.39 $ 18.15 $ 16.41 $ 12.02 $ 13.61 $ 11.38
==========================================================================================================
TOTAL RETURN 6.83%(d) 20.83% 56.42% (2.34%) 36.32% 13.57%
RATIOS
Net Assets -- End of Period
($000 Omitted) $2,471,482 $2,044,321 $1,340,299 $762,396 $778,416 $ 421,600
Ratio of Expenses to Average
Net Assets 1.03%(e)(g) 1.05%(e) 1.08%(e) 1.16%(e) 1.14%(e) 1.20%(f)
Ratio of Net Investment
Income (Loss) to Average
Net Assets (0.32%)(g) (0.41%) (0.43%) (0.31%) 0.16% 0.33%(f)
Portfolio Turnover Rate 23%(d) 129% 178% 204% 196% 176%
</TABLE>
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the period ended July 31, 1999 and for the year ended April 30, 1999.
(c) Distributions in excess of net investment income for the year ended April
30, 1996, aggregated less than $0.01 on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) 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%.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
INVESCO Endeavor Fund
(For a Fund Share Outstanding Throughout Each Period)
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- --------------------------------------------------------------------------------
1999(a)(b) 1999(c)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 16.32 $ 10.00
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.03) (0.03)
Net Gains on Securities (Both Realized
and Unrealized) 0.32 6.35
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.29 6.32
================================================================================
Net Asset Value-- End of Period $ 16.61 $ 16.32
================================================================================
TOTAL RETURN 1.78%(d) 63.20%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 109,532 $ 72,592
Ratio of Expenses to Average Net Assets(e) 1.49%(f) 1.43%(f)
Ratio of Net Investment Loss to Average
Net Assets (0.83%)(f) (0.55%)(f)
Portfolio Turnover Rate 47%(d) 107%(d)
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) The per share information was computed using average shares.
(c) From October 28, 1998, commencement of investment operations, to April 30,
1999.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
Growth & Income Fund
(For a Fund Share Outstanding Throughout Each Period)
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- --------------------------------------------------------------------------------
1999(a) 1999(b)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 14.54 $ 10.00
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(c) 0.00 0.00
Net Gains on Securities (Both Realized
and Unrealized) 0.83 5.22
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.83 5.22
================================================================================
LESS DISTRIBUTIONS
Distributions From Capital Gains 0.00 0.68
================================================================================
Net Asset Value-- End of Period $ 15.37 $ 14.54
================================================================================
TOTAL RETURN 5.71%(d) 53.07%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 61,316 $ 53,994
Ratio of Expenses to Average Net Assets(e)(f) 1.52%(g) 1.52%(g)
Ratio of Net Investment Loss to Average
Net Assets(f) (0.45%)(g) (0.25%)(g)
Portfolio Turnover Rate 46%(d) 121%(d)
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) From July 1, 1998, commencement of investment operations, to April 30, 1999.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
periods ended July 31, 1999 and April 30, 1999.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Various expenses of the Fund were voluntarily absorbed by IFG for the
periods ended July 31, 1999 and April 30, 1999. If such expenses had not
been voluntarily absorbed, ratio of expenses to average net assets would
have been 1.75% (annualized) and 1.71% (annualized) respectively, and ratio
of net investment loss to average net assets would have been (0.68%)
(annualized) and (0.44%) (annualized), respectively.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
S & P 500 Index Fund
(For a Fund Share Outstanding Throughout Each Period)
CLASS I CLASS II
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- --------------------------------------------------------------------------------------------------------------
1999 1998(a) 1999 1998(a)
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 12.01 $ 10.00 $ 12.14 $ 10.00
==============================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.18 0.11 0.14 0.07
Net Gains on Securities
(Both Realized and Unrealized) 2.26 1.98 2.29 2.14
==============================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.44 2.09 2.43 2.21
==============================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.19 0.08 0.13 0.07
Distributions from Capital Gains 0.05 0.00 0.05 0.00
==============================================================================================================
TOTAL DISTRIBUTIONS 0.24 0.08 0.18 0.07
==============================================================================================================
Net Asset Value-- End of Period $ 14.21 $ 12.01 $ 14.39 $ 12.14
==============================================================================================================
TOTAL RETURN(b) 20.40% 20.93%(c) 20.09% 22.11%(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 4,420 $ 3,259 $ 64,613 $ 15,065
Ratio of Expenses to Average Net Assets(d)(e) 0.35% 0.46%(f) 0.60% 0.62%(f)
Ratio of Net Investment Income to Average
Net Assets(e) 1.36% 1.96%(f) 1.06% 1.52%(f)
Portfolio Turnover Rate 2% 0%(c)(g) 2% 0%(c)(g)
</TABLE>
(a) From December 23, 1997, commencement of investment operations, through July
31, 1998.
(b) The applicable redemption fees are not included in the Total Return
calculation.
(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, if applicable, which is before any expense offset
arrangements.
(e) Various expenses of the Fund were voluntarily absorbed by IFG for the year
ended July 31, 1999 and the period ended July 31, 1998. If such expenses had
not been voluntarily absorbed, ratio of expenses to average net assets
would have been 1.17% and 2.51% (annualized) for Class I, respectively,
and 0.99% and 1.71% (annualized) for Class II, respectively, and ratio of
net investment income (loss) to average net assets would have been 0.54%
and (0.09%) (annualized) for Class I , respectively, and 0.67% and 0.42%
(annualized) for Class II, respectively.
(f) Annualized
(g) Portfolio Turnover Rate calculated to less than 0.10% for the period ended
July 31, 1998.
<PAGE>
FINANCIAL HIGHLIGHTS
Small Company Growth Fund
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
JULY 31 YEAR ENDED MAY 31
- ----------------------------------------------------------------------------------------------------------------------------
1999(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 12.08 $ 11.90 $ 12.82 $ 14.38 $ 9.37 $ 11.40
============================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) 0.00 0.00 (0.06) (0.07) (0.06) 0.04
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.53 1.35 2.56 (0.96) 5.25 0.46
============================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.53 1.35 2.50 (1.03) 5.19 0.50
============================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.00 0.00 0.00 0.00 0.00 0.04
Distributions from Capital Gains 0.00 1.17 3.42 0.53 0.18 2.49
============================================================================================================================
TOTAL DISTRIBUTIONS 0.00 1.17 3.42 0.53 0.18 2.53
============================================================================================================================
Net Asset Value --
End of Period $ 13.61 $ 12.08 $ 11.90 $ 12.82 $ 14.38 $ 9.37
============================================================================================================================
TOTAL RETURN 12.67%(c) 12.91% 22.65% (7.08%) 55.78% 4.98%
RATIOS
Net Assets -- End of Period
($000 Omitted) $452,861 $318,109 $272,619 $294,259 $370,029 $153,727
Ratio of Expenses to Average
Net Assets(d) 1.50%(e)(f) 1.51%(e) 1.48%(e) 1.52%(e) 1.48%(e) 1.49%
Ratio of Net Investment Income
(Loss) to Average Net Assets(d) (0.69%)(f) (0.58%) (0.42%) (0.55%) (0.78%) 0.41%
Portfolio Turnover Rate 41%(c) 203% 158% 216% 221% 228%
</TABLE>
(a) From June 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income (Loss) for the period ended July 31, 1999 and the year
ended May 31, 1999 aggregated less than $0.01 on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended July 31, 1999 and for the years ended May 31, 1999, 1997 and 1995. If
such expenses had not been voluntarily absorbed, ratio of expenses to
average net assets would have been 1.62% (annualized), 1.59%, 1.54% and
1.52%, respectively, and ratio of net investment income (loss) to average
net assets would have been (0.81%) (annualized), (0.66%), (0.57%), and
0.38%, respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
Value Equity Fund
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
JULY 31 YEAR ENDED AUGUST 31
- ----------------------------------------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 25.68 $ 28.30 $ 22.24 $ 19.53 $ 18.12 $ 17.79
============================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.17 0.26 0.35 0.35 0.39 0.36
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 6.25 (0.43) 6.62 3.09 2.58 1.20
============================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 6.42 (0.17) 6.97 3.44 2.97 1.56
============================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.17 0.26 0.35 0.35 0.39 0.31
In Excess of Net Investment
Income(b) 0.00 0.00 0.00 0.00 0.00 0.04
Distributions from Capital Gains 2.32 2.19 0.56 0.38 1.17 0.88
============================================================================================================================
TOTAL DISTRIBUTIONS 2.49 2.45 0.91 0.73 1.56 1.23
============================================================================================================================
Net Asset Value --
End of Period $ 29.61 $ 25.68 $ 28.30 $ 22.24 $ 19.53 $ 18.12
============================================================================================================================
TOTAL RETURN 25.41%(c) (1.06%) 32.04% 17.77% 17.84% 9.09%
RATIOS
Net Assets -- End of Period
($000 Omitted) $369,982 $349,984 $369,766 $200,046 $153,171 $111,850
Ratio of Expenses to Average
Net Assets(d) 1.27%(e)(f) 1.15%(e) 1.04%(e) 1.01%(e) 0.97% 1.01%
Ratio of Net Investment Income
to Average Net Assets(d) 0.63%(f) 0.86% 1.35% 1.64% 2.17% 1.80%
Portfolio Turnover Rate 22%(c) 48% 37% 27% 34% 53%
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
(b) Distributions in excess of net investment income for the period ended July
31, 1999 and for the year ended August 31, 1998, aggregated less than $0.01
on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended July 31, 1999 and the year ended August 31, 1998. If such expenses had
not be voluntarily absorbed, ratio of expenses to average net assets would
have been 1.38% (annualized) and 1.19%, respectively, and ratio of net
investment income to average net assets would have been 0.52% (annualized)
and 0.82%, respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
(f) Annualized
<PAGE>
OTHER INFORMATION
UNAUDITED
Blue Chip Growth Fund
On May 20, 1999, a special meeting of the shareholders of Blue Chip Growth Fund
was held at which the ten directors identified below were elected. The selection
of PricewaterhouseCoopers LLP as independent accountants (Proposal 1), the
approval of changes to the fundamental investment restrictions identified below
(Proposal 2), the approval of an Agreement and Plan of Conversion and
Termination providing for the conversion of Blue Chip Growth Fund from the only
series of INVESCO Growth Funds, Inc. to a separate series of INVESCO Stock
Funds, Inc. (Proposal 3) and the amendment to the Articles of Restatement of the
Articles of Incorporation (Proposal 4) were ratified. The following is a report
of the votes cast:
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Charles W. Brady 110,922,165 N/A 3,976,814 114,898,979
Fred A. Deering 111,019,398 N/A 3,879,581 114,898,979
Mark H. Williamson 110,955,020 N/A 3,943,959 114,898,979
Dr. Victor L. Andrews 111,002,866 N/A 3,896,113 114,898,979
Bob R. Baker 111,011,063 N/A 3,887,916 114,898,979
Lawrence H. Budner 111,084,702 N/A 3,814,277 114,898,979
Dr. Wendy Lee Gramm 111,044,524 N/A 3,854,455 114,898,979
Kenneth T. King 111,027,085 N/A 3,871,894 114,898,979
John W. McIntyre 111,058,691 N/A 3,840,288 114,898,979
Dr. Larry Soll 111,051,935 N/A 3,847,044 114,898,979
Proposal 1 108,421,506 1,144,082 5,333,390 114,898,978
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Loans 96,170,679 5,366,285 13,362,015 114,898,979
b --Investing in commodities 96,207,922 5,329,042 13,362,015 114,898,979
c --Real estate investments 96,273,595 5,263,369 13,362,015 114,898,979
d --Underwriting securities 96,243,584 5,293,380 13,362,015 114,898,979
e --Industry concentration 96,220,615 5,316,349 13,362,015 114,898,979
Elimination of Fundamental
Investment Restrictions on:
f --Issuing preference shares
and creating funded debt and
adoption of fundamental
restriction on the issuance
of senior securities 96,123,721 5,413,243 13,362,015 114,898,979
g --Investing in companies
for the purpose of exercising
control or management 96,264,671 5,272,293 13,362,015 114,898,979
</TABLE>
<PAGE>
OTHER INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Blue Chip growth fund (continued)
h --Investing in illiquid
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 96,148,096 5,388,868 13,362,015 114,898,979
i --Ownership of securities
also owned by directors and
officers of the Fund or its
investment adviser 96,129,247 5,407,717 13,362,015 114,898,979
Proposal 3 97,559,713 4,973,288 12,365,978 114,898,979
Proposal 4
Elimination from Articles of
Fundamental Investment
Restrictions on:
a --Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 96,478,355 5,188,637 13,231,987 114,898,979
b --Borrowing 96,471,710 5,195,282 13,231,987 114,898,979
c --Joint trading activities 96,500,399 5,166,593 13,231,987 114,898,979
d --Investing in another
investment company 96,565,435 5,101,557 13,231,987 114,898,979
e --Issuer diversification 96,572,882 5,094,110 13,231,987 114,898,979
f --Loans to affiliates 96,469,301 5,197,691 13,231,987 114,898,979
</TABLE>
<PAGE>
OTHER INFORMATION (CONTINUED)
UNAUDITED
On May 20, 1999, a special meeting of the shareholders of S&P 500 Index Fund was
held at which the ten directors identified below were elected. The selection of
PricewaterhouseCoopers LLP as independent accountants (Proposal 1), the approval
of changes to the fundamental investment restrictions identified below (Proposal
2) and the approval of an Agreement and Plan of Conversion and Termination
providing for the conversion of the Fund from a separate series of INVESCO
Specialty Funds, Inc. to a separate series of INVESCO Stock Funds, Inc.
(Proposal 3). The following is a report of the votes cast:
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
S & P 500 Index Fund -- Class I
Charles W. Brady 268,955 N/A 0 268,955
Fred A. Deering 268,955 N/A 0 268,955
Mark H. Williamson 268,955 N/A 0 268,955
Dr. Victor L. Andrews 268,955 N/A 0 268,955
Bob R. Baker 268,955 N/A 0 268,955
Lawrence H. Budner 268,955 N/A 0 268,955
Dr. Wendy Lee Gramm 268,955 N/A 0 268,955
Kenneth T. King 268,955 N/A 0 268,955
John W. McIntyre 268,955 N/A 0 268,955
Dr. Larry Soll 268,955 N/A 0 268,955
Proposal 1 268,955 0 0 268,955
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Investment objectives of
Realty Fund 267,744 0 1,211 268,955
b --Issuer diversification 267,744 0 1,211 268,955
c --Borrowing securities and
adoption of non-fundamental
restriction on borrowing 267,744 0 1,211 268,955
d --Real estate investments 267,744 0 1,211 268,955
e --Investing in commodities 267,744 0 1,211 268,955
f --Loans 267,744 0 1,211 268,955
g --Underwriting securities 267,744 0 1,211 268,955
h --Industry concentration for
Latin American Growth Fund
only 267,744 0 1,211 268,955
I --Investing in another
investment company 267,744 0 1,211 268,955
Adoption of Fundamental
Restriction on:
j --Issuance of senior securities 267,744 0 1,211 268,955
Proposal 3 268,790 0 165 268,955
</TABLE>
<PAGE>
OTHER INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
S & P 500 Index Fund -- Class II
Charles W. Brady 2,119,724 N/A 92,065 2,211,789
Fred A. Deering 2,119,724 N/A 92,065 2,211,789
Mark H. Williamson 2,119,724 N/A 92,065 2,211,789
Dr. Victor L. Andrews 2,119,724 N/A 92,065 2,211,789
Bob R. Baker 2,119,724 N/A 92,065 2,211,789
Lawrence H. Budner 2,119,724 N/A 92,065 2,211,789
Dr. Wendy Lee Gramm 2,119,724 N/A 92,065 2,211,789
Kenneth T. King 2,119,724 N/A 92,065 2,211,789
John W. McIntyre 2,119,724 N/A 92,065 2,211,789
Dr. Larry Soll 2,119,724 N/A 92,065 2,211,789
Proposal 1 2,067,497 24,475 119,816 2,211,788
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Investment objectives of
Realty Fund 1,852,010 116,076 243,703 2,211,789
b --Issuer diversification 1,852,010 116,076 243,703 2,211,789
c --Borrowing securities and
adoption of non-fundamental
restriction on borrowing 1,852,010 116,076 243,703 2,211,789
d --Real estate investments 1,852,010 116,076 243,703 2,211,789
e --Investing in commodities 1,852,010 116,076 243,703 2,211,789
f --Loans 1,852,010 116,076 243,703 2,211,789
g --Underwriting securities 1,852,010 116,076 243,703 2,211,789
h --Industry concentration for
Latin American Growth Fund
only 1,852,010 116,076 243,703 2,211,789
i --Investing in another
investment company 1,852,010 116,076 243,703 2,211,789
Adoption of Fundamental
Restriction on:
j --Issuance of senior securities 1,852,010 116,076 243,703 2,211,789
Proposal 3 1,862,360 127,526 221,903 2,211,789
</TABLE>
<PAGE>
OTHER INFORMATION (CONTINUED)
UNAUDITED
On May 20, 1999, a special meeting of the shareholders of Value Equity Fund was
held at which the ten trustees identified below were elected. The selection of
PricewaterhouseCoopers LLP as independent accountants (Proposal 1), the approval
of changes to the fundamental investment restrictions identified below (Proposal
2) and the approval of an Agreement and Plan of Conversion and Termination
providing for the conversion of Value Equity Fund from a separate series of
INVESCO Value Trust to a separate series of a Maryland Corporation, INVESCO
Stock Funds, Inc. (Proposal 3) were ratified. The following is a report of the
votes cast:
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Value Equity Fund
Charles W. Brady 8,979,185 N/A 615,276 9,594,461
Fred A. Deering 8,982,098 N/A 612,363 9,594,461
Mark H. Williamson 8,981,788 N/A 612,673 9,594,461
Dr. Victor L. Andrews 8,983,188 N/A 611,273 9,594,461
Bob R. Baker 8,983,745 N/A 610,716 9,594,461
Lawrence H. Budner 8,982,569 N/A 611,892 9,594,461
Dr. Wendy Lee Gramm 8,980,094 N/A 614,367 9,594,461
Kenneth T. King 8,984,726 N/A 609,735 9,594,461
John W. McIntyre 8,984,460 N/A 610,001 9,594,461
Dr. Larry Soll 8,985,222 N/A 609,239 9,594,461
Proposal 1 8,798,252 202,783 593,424 9,594,459
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Industry concentration
and adoption of certain
non-fundamental restrictions 8,317,684 316,250 960,527 9,594,461
b --Issuer diversification 8,317,684 316,250 960,527 9,594,461
c --Underwriting securities 8,317,684 316,250 960,527 9,594,461
d --Borrowing and adoption of
non-fundamental policy on
borrowing 8,317,684 316,250 960,527 9,594,461
e --Issuance of senior securities 8,317,684 316,250 960,527 9,594,461
f --Real estate investments 8,317,684 316,250 960,527 9,594,461
g --Investing in commodities 8,317,684 316,250 960,527 9,594,461
h --Loans 8,317,684 316,250 960,527 9,594,461
i --Investing in another
investment company and
adoption of non-fundamental
investment policy regarding
investment in securities issued
by other investment companies 8,317,684 316,250 960,527 9,594,461
</TABLE>
<PAGE>
OTHER INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Value Equity Fund (Continued)
Elimination of Fundamental
Investment Restrictions on:
j --Investing in companies for
the purpose of exercising control
or management 8,317,684 316,250 960,527 9,594,461
k --Mortgaging, pledging or
hypothecating securities 8,317,684 316,250 960,527 9,594,461
l --Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 8,317,684 316,250 960,527 9,594,461
m --Investing in illiquid
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 8,317,684 316,250 960,527 9,594,461
Proposal 3 8,577,646 72,134 944,681 9,594,461
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESCO Family of Funds
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Stock
Growth & Income 21 IVGIX Gro&Inc
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
INVESCO Endeavor 61 IVENX Endeavor
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund-Class II 23 ISPIX SP500II
- ----------------------------------------------------------------------------------------------
Bond
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond (formerly
Tax-Free Long-Term Bond) 35 FTIFX TxFre
- ----------------------------------------------------------------------------------------------
Combination Stock & Bond
Equity Income
(formerly Industrial Income) 15 FIIIX EquityInc
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- ----------------------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology-Class II 55 FTCHX Tech
Utilities 58 FSTUX Util
Telecommunications 39 ISWCX Telecomm
(formerly Worldwide Communications)
- ----------------------------------------------------------------------------------------------
International
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- ----------------------------------------------------------------------------------------------
Money Market
U.S. Government Money 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money 40 FFRXX InvTaxFree
Treasurer's Money Market Reserve 96 IMRXX InvescoMMR
Treasurer's Tax-Exempt Reserve 95 ITTXX InvescoTTE
</TABLE>
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.
AFQ 9022 8/99
