KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
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YOU SHOULD KNOW WHAT INVESCO KNOWS (R)
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INVESCO STOCK FUNDS, INC.
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
ANNUAL REPORT | July 31, 2000 [INVESCO ICON] INVESCO FUNDS
A MEMBER OF THE AMVESCAP GROUP
<PAGE>
<TABLE>
<CAPTION>
INVESCO STOCK FUNDS, INC.
TOTAL RETURN -- PERIODS ENDED 7/31/00(1)
10 YEARS* MANAGER'S
CUMULATIVE OR SINCE REPORT
FUND (INCEPTION DATE) 6 MONTHS 1 YEAR 5 YEARS* INCEPTION^ PAGE#
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<S> <C> <C> <C> <C> <C>
BLUE CHIP GROWTH-INVESTOR CLASS 7.08% 38.42% 28.27% 19.34% 5
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BLUE CHIP GROWTH-CLASS C (2/00) N/A N/A N/A 2.18%^ 5
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DYNAMICS-INVESTOR CLASS 9.69% 50.34% 29.01% 24.31% 7
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DYNAMICS-INSTITUTIONAL CLASS (5/00) N/A N/A N/A 14.74% 7
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DYNAMICS-CLASS C (2/00) N/A N/A N/A (1.66%)^ 7
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GROWTH & INCOME-INVESTOR CLASS (7/98) 6.77% 30.79% N/A 43.27%^ 9
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GROWTH & INCOME-CLASS C (2/00) N/A N/A N/A 3.74%^ 9
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INVESCO ENDEAVOR-INVESTOR CLASS (10/98) 4.20% 55.84% N/A 71.73%^ 11
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INVESCO ENDEAVOR-CLASS C (2/00) N/A N/A N/A (5.71%)^ 11
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SMALL COMPANY GROWTH-INVESTOR CLASS (12/91) 3.99% 53.55% 24.53% 22.03%^ 13
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SMALL COMPANY GROWTH-CLASS C (2/00) N/A N/A N/A (11.17%)^ 13
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VALUE EQUITY-INVESTOR CLASS (1.47%) (6.52%) 12.41% 12.80% 15
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VALUE EQUITY-CLASS C (2/00) N/A N/A N/A 1.52%^ 15
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S&P 500 INDEX - INSTITUTIONAL CLASS (12/97) 2.75% 8.47% N/A 19.17%^ 17
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S&P 500 INDEX - INVESTOR CLASS (12/97) 2.72% 8.34% N/A 19.44%^ 17
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</TABLE>
* AVERAGE ANNUALIZED
^ FOR FUNDS INTRODUCED MORE RECENTLY
Graph: Blue Chip Growth Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO Blue
Chip Growth Fund - Investor Class 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 7/31/00.
Graph: Blue Chip Growth Fund - Class C
Total Return Since Inception (02/00) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO Blue
Chip Growth Fund - Class C 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 (02/00) through 7/31/00.
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 7/31/00. 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)
<PAGE>
Graph: Dynamics Fund - Investor Class
10-Year Total Return vs. S&P MidCap 400 Index
This line graph compares the value of a $10,000 investment in INVESCO
Dynamics Fund - Investor Class 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 7/31/00.
Graph: Dynamics Fund - Class C
Total Return Since Inception (02/00) vs. S&P MidCap 400 Index
This line graph compares the value of a $10,000 investment in INVESCO
Dynamics Fund - Class C 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 period from inception (02/00) through
7/31/00.
Graph: Dynamics Fund - Institutional Class
Total Return Since Inception (05/00) vs. S&P MidCap 400 Index
This line graph compares the value of a $10,000 investment in INVESCO
Dynamics Fund - Institutional Class 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 period from inception
(05/00) through 7/31/00.
Graph: S&P 500 Index Fund - Institutional Class
and S&P 500 Index Fund - Investor Class
Total Return Since Inception (12/97) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO S&P
500 Index Fund - Institutional Class and a $10,000 investment in INVESCO
S&P 500 Index Fund - Investor Class 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
7/31/00.
Graph: Growth & Income Fund - Investor Class
Total Return Since Inception (07/98) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Growth & Income Fund - Investor Class 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 (07/01/98)
through 7/31/00.
Graph: Growth & Income Fund - Class C
Total Return Since Inception (02/00) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Growth & Income Fund - Class C 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 (02/00) through
7/31/00.
Graph: INVESCO Endeavor Fund - Investor Class
Total Return Since Inception (10/98) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Endeavor Fund - Investor Class 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
7/31/00.
<PAGE>
Graph: INVESCO Endeavor Fund - Class C
Total Return Since Inception (02/00) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Endeavor Fund - Class C 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 (02/00) through 7/31/00.
Graph: Small Company Growth Fund - Investor Class
Total Return Since Inception (12/91) vs. Russell 2000 Index
This line graph compares the value of a $10,000 investment in INVESCO Small
Company Growth Fund - Investor Class to the value of a $10,000 investment
in the Russell 2000 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the ten-year period from
inception (12/91) through 7/31/00.
Graph: Small Company Growth Fund - Class C
Total Return Since Inception (02/00) vs. Russell 2000 Index
This line graph compares the value of a $10,000 investment in INVESCO
Small Company Growth Fund - Class C to the value of 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
(02/00) through 7/31/00.
Graph: Value Equity Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Value Equity Fund - Investor Class 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 7/31/00.
Graph: Value Equity Fund - Class C
Total Return Since Inception (02/00) vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Value Equity Fund - Class C 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 (02/00) through
7/31/00.
<PAGE>
BLUE CHIP GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
We are pleased to report that your fund has enjoyed strong performance for the
fiscal year ended July 31, 2000. The portfolio moved ahead dramatically in the
last months of 1999, fed by strong earnings returns from its sizeable holdings
in technology, communications, and other top growth sectors. The situation in
the markets changed dramatically in the new year, however, as the threat of an
overheating economy and rising interest rates led many investors to re-evaluate
the prices they were willing to pay for blue chip companies.
We accommodated this shift in sentiment by focusing more on those companies --
mostly at the smaller end of our traditional large-cap spectrum -- that best
promised to keep surprising analysts with the strength of their growth. We did
not, however, "pull in our horns" as did some other growth investors, seeking
refuge in second-tier firms that are more moderately priced by traditional
valuation measures. Our approach has allowed us to hold on to the substantial
gains from earlier in the period, while leaving the portfolio well positioned,
we believe, to enjoy additional strong gains should the markets resume an upward
march. Of course, there is no guarantee the fund will meet its objectives.
For the one-year period ended July 31, 2000, the value of Investor Class shares
increased 38.42%. This far exceeded the return on the S&P 500 Index over the
same period, which rose 8.97%. (Of course, past performance is not a guarantee
of future results.)(1),(2)
UNPREDICTABLE LEADERSHIP
It is not only the case that market leadership among blue chip stocks became
more narrow this year -- in other words, that relatively few stocks moved up
while many languished -- but it is also true that this leadership became
somewhat more unpredictable. Merely growing at a rapid rate or being in a
favored industry no longer presaged strong returns. Indeed, many of the
previously charmed stocks in high-growth industries, such as Microsoft Corp and
Dell Computer, moved up only modestly or not at all. Similarly, the rapidly
growing biotechnology industry saw a slew of stocks lose value -- including some
in our portfolio -- despite the heralded decoding of the human genome, which is
expected to lead to a new era of growth for the industry.
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FUND MANAGEMENT
TRENT E. MAY, CFA
VICE PRESIDENT TRENT E. MAY IS LEAD MANAGER OF BLUE CHIP GROWTH FUND. HE
RECEIVED A BS FROM THE FLORIDA INSTITUTE OF TECHNOLOGY AND AN MBA FROM ROLLINS
COLLEGE. TRENT BEGAN HIS INVESTMENT CAREER IN 1991, AND JOINED INVESCO FUNDS
GROUP IN 1996. HE IS A CHARTERED FINANCIAL ANALYST.
DOUGLAS J. MCELDOWNEY, CFA, CPA
DOUGLAS J. MCELDOWNEY IS A VICE PRESIDENT AT INVESCO FUNDS GROUP 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>
We are pleased to report, however, that we were able to concentrate most of the
portfolio in that narrow group of blue chip stocks that led the market last
year. Our largest holdings in communications equipment, for example, all moved
up strongly. Although its recent problems have been well advertised, Nokia Corp,
the Finnish cellular handset maker, enjoyed stellar returns during the past
year. So did Nortel Networks and Corning Inc, both equipment suppliers for fiber
optic networks.
Aside from Microsoft, our major positions in computer software also gained
ground. Oracle Corp, the leader in database software, moved up substantially as
investors became convinced that it had a secure place in the new age of
Web-integrated business software. Redback Networks, which provides software that
integrates corporate networks, also moved dramatically higher. While
Internet-related firms endured a difficult period after the plunge in technology
stocks in March, two stocks in our portfolio, America Online and Yahoo! Inc,
both enjoyed strong returns. We remain particularly excited about the prospects
for America Online, one of our top holdings. Once the potential merger with Time
Warner is complete, we expect that the synergies of this combination and the
strength of the united company's business plan will result in greatly renewed
interest by investors.
CONCENTRATION PAYS OFF
We held only a handful of major drug manufacturers in the portfolio last year.
Our largest pick by a wide margin, Warner-Lambert Co, performed well as the
company became the target of rival bids by Pfizer Inc and American Home
Products. Meanwhile, Pfizer's stock drifted lower as it became clear that the
company would win the battle, yet pay handsomely to do so. At the same time,
Warner-Lambert's stock rose sharply. Convinced of Pfizer's future, we owned that
stock as well, yet in much lower proportion.
The same pattern held true in the financial services sector. While our small
holdings in a few regional banks underperformed, our largest holdings --
Citigroup Inc, Schwab (Charles) Corp, and American International Group -- all
contributed strongly to our returns.
In short, we believe this year justified our strategy of running a relatively
concentrated portfolio. Putting most of our assets in a limited number of stocks
in which we have the most faith can make the fund more volatile than others that
closely track the S&P 500 Index, for example. But we know you have put your
faith in our ability to pick stocks, and we will continue to manage the fund on
that basis. Over the long run, we are confident that our approach may help our
shareholders to continue to enjoy strong, market-beating returns.
/s/ Trent E. May /s/ Douglas J. McEldowney
Trent E. May, CFA Douglas J. McEldowney, CFA
Vice President Vice President
<PAGE>
DYNAMICS FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
Your fund enjoyed strong performance during the fiscal year ended July 31, 2000.
While the overall market performed well during the period, the high-growth,
mid-cap stocks which we target advanced substantially. We are pleased to report
that the fund outperformed even these favored stocks to record one of its
largest gains in any 12-month period.
For the one-year period ended July 31, 2000, the value of Investor Class shares
increased by 50.34%. This gain handily outperformed the S&P MidCap 400 Index,
which rose 21.41% over the same period. It also surpassed the S&P/BARRA 400
Growth Index, which rose 39.99% during the same period. (Of course, past
performance is not a guarantee of future results.)(1),(2)
BALANCING FOCUS AND DIVERSIFICATION
To achieve these results, we relied mainly on our long-term strategy of
investing in companies in the leading growth sectors, while diversifying broadly
within those sectors. Many of our top gainers were in technology and
communications, two of the sectors that have recently attracted abundant
investor interest. But the fund also enjoyed strong returns from companies in
other industries that were able to make use of technology, or leverage some
other competitive advantage, to achieve high growth.
For some time now, we have been discussing the e-commerce "buildout," a
multiyear pattern of business investment in the infrastructure necessary for
conducting transactions with suppliers and customers over the Internet.
Recognizing that a key part of the digital buildout involves the construction of
fiber optics networks, we have invested in several leading makers of optical
equipment. CIENA Corp, which makes both hardware and software for optical
networks, has been one of our fund's top performers over the past year -- as
well as an example of the types of opportunities that await medium-sized firms
able to compete against the giants in technology and communications. CIENA has
been able to seize customers from larger competitors such as Lucent
Technologies.
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FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
CHIEF INVESTMENT OFFICER TIM MILLER IS LEAD MANAGER OF DYNAMICS FUND. HE ALSO
LEADS INVESCO'S GROWTH INVESTMENT MANAGEMENT TEAM. PRIOR TO JOINING INVESCO
FUNDS GROUP, 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 MORE THAN 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 FUNDS GROUP, 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>
At another link in the e-commerce chain, we have invested in several firms that
make the software required for conducting digital transactions. BroadVision Inc
and Art Technology Group, companies that develop customer management software
for business Web sites, have benefited as clients such as Wal-Mart Stores and
Circuit City Stores gear up for online commerce. Of course, all of the data
resulting from such transactions has to be stored somewhere, and another of our
holdings, Exodus Communications, has increasingly become the vendor of choice.
Exodus manages Internet Data Centers, which provide reliable housing and
services for the individual servers that are the backbone of the Internet.
A FOCUS ON ECONOMIC TRENDS
Of course, as a diversified fund, we seek to uncover trends across the economy,
not simply in technology and communications. A growing consensus that dwindling
oil and gas inventories mean a new age of exploration and increased production
is at hand has led to gains for several of our energy holdings. Our focus on the
oil services companies that drill and explore has led us to companies such as
Noble Drilling and Cooper Cameron, a manufacturer of oil and gas pressure
equipment.
Not all economic trends result in solid performance, of course. Our strategy of
owning the electronics retailers that help consumers with their own digital
buildouts in the home has not been profitable over the past year. Best Buy moved
lower during the period, and RadioShack Corp managed only a modest gain. Many of
our extensive biotechnology holdings also drifted lower, even as the unlocking
of the human genome heralded a promising new growth era for the sector.
Still, we are confident that many of these trends are at only the beginning of a
multiyear cycle, one which will continue to offer opportunities to shareholders.
While threats of higher interest rates and other factors may lead to continued
market volatility, we remain wholly optimistic for the longer-term future for
our portfolio.
/s/ Timothy J. Miller /s/ Thomas R. Wald
Timothy J. Miller, CFA Thomas R. Wald, CFA
Senior Vice President Vice President
<PAGE>
GROWTH & INCOME FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
Growth & Income Fund enjoyed another year of strong performance over the fiscal
year ended July 31, 2000. We are pleased with this record, of course, but doubly
so because this was not a year in which many of the very largest companies moved
higher.
Indeed, some of the large firms that are the usual targets of our portfolio lost
ground, following several years of strong performance. Microsoft Corp, which
suffered a well-publicized fall arising from its antitrust problems, was the
most prominent example of a company that endured downward pressure, even as its
market dominance remained intact. Despite these conditions, we were able to find
opportunities in new market leaders, as well as some firms which had suffered
setbacks and were now able to recapture earlier successes.
For the one-year period ended July 31, 2000, the value of Investor Class shares
rose 30.79%. This return easily surpassed that of the S&P 500 Index, which rose
8.97% during the same period. (Of course, past performance is not a guarantee of
future results.)(1),(2)
LEADERS RE-EMERGE
Three of the stocks that contributed strongly to our performance over the past
year illustrate the way in which we have attempted to find opportunities in a
variety of companies. In our search for growth with stability, we are
particularly interested in large, established companies that are enjoying a
surge of profitability as they enter lucrative new markets. Venerable General
Electric rose steadily last year as investors appreciated the solid place that
remained for the diversified giant in the new economy. Strong earnings from
several of its divisions -- from aircraft engines to power turbines to financial
services -- helped propel that company's stock price higher.
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FUND MANAGEMENT
FRITZ MEYER
VICE PRESIDENT FRITZ MEYER IS LEAD 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 FUNDS GROUP IN 1996. PRIOR TO JOINING INVESCO, FRITZ WAS
AN EXECUTIVE VICE PRESIDENT AND PORTFOLIO MANAGER WITH NELSON, BENSON & ZELLMER,
INC. IN DENVER, COLORADO.
TRENT E. MAY, CFA
VICE PRESIDENT TRENT E. MAY IS CO-MANAGER OF GROWTH & INCOME FUND. HE RECEIVED A
BS FROM THE FLORIDA INSTITUTE OF TECHNOLOGY AND AN MBA FROM ROLLINS COLLEGE.
TRENT BEGAN HIS INVESTMENT CAREER IN 1991, AND JOINED INVESCO FUNDS GROUP IN
1996. HE IS A CHARTERED FINANCIAL ANALYST.
<PAGE>
Insurance giant American International Group (AIG) and financial services firm
Citigroup Inc both exceeded expectations, leading many large financial firms out
of the forest after several quarters of underperformance. While rising
short-term interest rates typically hurt the profits of financial services firms
that rely on the spread between borrowing and lending money, companies like AIG
have been able to record healthy earnings from fee-based services. AIG's primary
business is underwriting insurance for clients around the globe, and, like
General Electric, has diversified into financial services such as asset
management, consulting, and aircraft leasing.
A PRIMARY FOCUS ON GROWTH
Because our focus is on growth, we are also willing to take substantial
positions in some of the economy's fastest-growing, large-capitalization
companies. One of our top performers in this category over the past year was
Cisco Systems, the network equipment manufacturer that briefly displaced both
General Electric and Microsoft as the world's most highly valued company. Of
course, Cisco's exceptional promise has long been no secret to investors, and
even before the year started, the company's stock price was very high by several
valuation measures. Our growth investment philosophy, however, is that
consistently superlative growth will result in high returns for patient
shareholders. Although Cisco's stock faltered during the steep drop in the
technology sector last April, its ability to increase earnings at roughly three
times the rate of the S&P 500 as a whole has helped the stock resume its upward
trajectory.
Despite our favorable record overall, we suffered a few disappointments. Long
distance rate wars caused investors to reconsider the prospects of many
communications firms, and several of our holdings in this area moved lower. And
despite the strong performance by certain energy firms, our positions in the
integrated energy producers Chevron Corp and Exxon Mobile also disappointed.
Finally, even with the hopeful news of scientists unlocking of the human genome,
biotechnology companies had a roller coaster ride over the past year, which left
many of them lower at the end of our reporting period.
Overall, however, we are pleased with another encouraging year for the fund.
Though we would repeat our warning that shareholders should not expect such high
returns to be the norm going forward, we also emerge from it optimistic for the
intermediate-term direction of the markets. The markets have suffered under the
considerable burden of rising interest rates this year, but this cloud appears
likely to lift as the Federal Reserve decides it is satisfied that the economy
has slowed to a sustainable pace. Earnings growth remains robust, while
liquidity and demographic factors should sustain investors' interest in
equities. Our intention is to continue to position the fund in those companies
that will dominate the spotlight.
/s/ Fritz Meyer /s/ Trent E. May
Fritz Meyer Trent E. May, CFA
Vice President Vice President
<PAGE>
INVESCO ENDEAVOR FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
Your fund enjoyed a solid record of performance for the fiscal year ended July
31, 2000, although our robust gains in the first half of the period were reduced
periodically over the last several months as technology and communications
stocks corrected dramatically. High-growth stocks of the type we invest in are
vulnerable to sharp pullbacks, as we experienced in April of this year.
Nevertheless, we believe that our record over the entire period justifies
patience with these stocks, and we intend to maintain our high-growth,
leading-company focus as we move forward.
For the one-year period ended July 31, 2000, the value of Investor Class shares
rose 55.84%. This greatly outperformed the return of the S&P 500 Index, which
rose 8.97% over the same period. (Of course, past performance is no guarantee of
future results.)(1),(2)
THE E-COMMERCE "BUILDOUT"
Driving these impressive returns were firms of many different types and sizes,
although many of them were involved in speeding the transfer of information
among businesses, consumers, and individuals. More precisely, these companies
are involved in what has become to be known as the e-commerce "buildout" -- the
construction of the infrastructure necessary to move a variety of commerce
transactions and communications to a digital structure over the Internet. While
it is important not to exaggerate the changes taking place, it is worth
acknowledging that many experts believe this is an infrastructure project at
least on par with building the railroad or highway networks -- and one that is
just beginning.
Several of our top performers specialize in the equipment that parses and
transmits digital information. Mid-cap holding Redback Networks, for example,
makes hardware and software that allows companies and other institutions to
create so-called "regional networks" that speed information across telephone
lines, fiber optic cables, and wireless systems. Large-cap holding JDS Uniphase
is a leading maker of a variety of fiber optical components. At the end of our
reporting period, it announced plans to acquire SDL Inc, which makes pump lasers
that take optical signals and speeds them along their way.
DECIPHERING INFORMATION
Other top performers during the period included companies involved in
deciphering all that information and putting it into a usable form for
businesses and consumers. For instance, Siebel Systems makes "front office"
software that handles a variety of customer services tasks for large businesses.
The company is the leader in this increasingly important field, and its revenues
and earnings have continued growing at well over 50% annually.
--------------------------------------------------------------------------------
FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
CHIEF INVESTMENT OFFICER TIM MILLER HAS BEEN LEAD MANAGER OF INVESCO ENDEAVOR
FUND SINCE ITS INCEPTION. HE ALSO LEADS INVESCO'S GROWTH INVESTMENT MANAGEMENT
TEAM. PRIOR TO JOINING INVESCO FUNDS GROUP, 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 MORE THAN 20 YEARS OF
INVESTMENT EXPERIENCE.
<PAGE>
Although many of these companies are relatively obscure, one of our best
performers -- and a firm that we have a great deal of faith in moving forward --
is a company that is well known for sorting and deciphering information for
consumers, America Online (AOL). Given its unique customer database, huge
subscriber base, and unique brand, AOL has become the partner of choice for
anyone seeking to do business on the Internet. Moreover, the company's growth
potential is awesome should it be able to translate the successes it has enjoyed
in the United States overseas. After rising rapidly in the markets in 1999,
AOL's much-publicized merger with Time Warner concerned many analysts, who
worried that its growth would slow. Still, we believe the long-term potential of
the company is huge, and we are positioning ourselves for more growth in the
future.
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TRENT MAY NAMED NEW LEAD MANAGER FOR INVESCO ENDEAVOR FUND
Vice President Trent May, CFA, has been named lead portfolio manager for the
INVESCO Endeavor Fund. As a member if the INVESCO Growth Team, Trent has helped
manage the fund since its inception and will maintain the all-cap fund's
investment objective of long-term capital growth through aggressive investment
policies. He is also lead manager for the INVESCO Blue Chip Growth Fund and
co-manager of the INVESCO Growth & Income Fund. Trent received a BS from the
Florida Institute of Technology and an MBA from Rollins College. Trent began his
investment career in 1991, and joined INVESCO Funds Group in 1996.
--------------------------------------------------------------------------------
Drawing on the expertise of all the members of INVESCO's growth team has been
key to our success, but so has been listening to our sector managers. INVESCO's
Energy Fund manager, John Segner, convinced us early in the year of the
potential for energy stocks as world oil and gas inventories began to shrink.
Consequently, we invested in several oil services firms that have enjoyed strong
performance as it has become clear that a new era of oil exploration and
production was beginning. Health care stocks have also performed well for us
overall, with several of our large pharmaceutical holdings showing solid gains.
BIOTECHNOLOGY DISAPPOINTS
Of course, not all of our holdings have fared as well. Biotechnology stocks
disappointed us this year, as investors began to take a more critical view of
their long-term potential. Leisure stocks, good performers last year, fell in
response to worries that the U.S. economy would slow enough to substantially
curtail consumer spending. The same was true of some of our retail and service
holdings.
On a personal note, this is my last report to you as lead manager of the fund
(please see the related box above). Trent May, who has played an integral role
in INVESCO Endeavor Fund as our primary expert on blue chip stocks -- and as
manager of INVESCO Blue Chip Growth Fund -- will take over the management reins
of the fund going forward. I will continue to head up the INVESCO Growth Team,
coordinating the teamwork that has served us so well in recent years, while
assuming my new role as Chief Investment Officer.
What will not change is the fund's focus on high-growth companies in leading
industries, combined with our willingness to "take a full swing" when we see an
exceptional opportunity. I have every confidence that Trent will be able to
report on some more of these exciting opportunities in our next report.
/s/ Timothy J. Miller
Timothy J. Miller, CFA
Chief Investment Officer
<PAGE>
SMALL COMPANY GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
Small Company Growth Fund enjoyed a remarkable period of performance for the
fiscal year ended July 31, 2000, a period that saw the value of the portfolio
increase by roughly one half, based on market appreciation. We should note that
small-capitalization growth stocks are especially volatile -- and indeed, the
last few months have seen sharp declines for some of our holdings. Nevertheless,
we continue to believe the outlook for the best small companies remains
positive, and we have used the volatility that began in mid-March to add to our
highest-quality holdings.
For the one-year period ended July 31, 2000, the value of Investor Class shares
rose 53.55%. This easily surpassed the return of the Russell 2000 Index, which
rose 13.77% over the same period. (Of course, past performance is no guarantee
of future results.)(1),(2)
THE COMMUNICATIONS NICHE
In many ways, the key to successful small company growth investing is finding
companies that are exploiting rich new niches created by technology,
deregulation, or other shifts in the economy's make-up. One key area in which
this is happening is the communications sector. Although still dominated by
massive equipment companies and service providers, communications has seen
technological changes that are so numerous that even smaller firms can quickly
take the lead in any given business.
Wireless communications is one such technology. Digital Microwave, which makes a
range of specialized equipment for the burgeoning industry, is a holding that
has served our fund well over the past year. This is also true of Pinnacle
Holdings, which operates the cellular towers that house equipment owned by
wireless providers. Pinnacle has seen its business improve as space on such
structures becomes scarce. REMEC Inc, a company that makes equipment that
improves the capacity, efficiency, and reliability of existing wireless
infrastructure, has also been a valuable holding.
SOFTWARE OPPORTUNITIES
The recent antitrust ruling against Microsoft Corp to the contrary, computer
software is another area that has allowed many small firms to flourish. This is
especially true of companies that specialize in linking business software
services to the outside world. Two of our top-performing holdings for example,
Entrust Technologies and Mercury Interactive, provide security services for
companies doing business over the Web.
--------------------------------------------------------------------------------
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 SUPPORTED BY ASSISTANT MANAGER CAMERON COOKE.
<PAGE>
Biotechnology and pharmaceuticals is another area where small companies have
been able to experience rapid growth. Trimeris Inc, which is developing a
promising class of AIDS drug called fusion inhibitors, has performed well for
the fund, as has Celgene Corp, which is working on small molecule drugs for
cancer treatment. While biotechnology stocks, in particular, suffered some steep
setbacks over the past year, our diversification in the sector and our focus on
the best-financed companies helped us emerge with strong gains overall for the
period.
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND HAS CLOSED TO NEW INVESTORS
Effective August 31, 2000, the INVESCO Small Company Growth Fund was closed to
new investors - although existing shareholders may continue to invest in the
fund. INVESCO's highest priority is delivering superior investment management
for our shareholders. Because the universe of small-cap stocks is limited, we
feel it's important to restrict the amount of money the manager is trying to
invest. If we allow the fund to continue to grow unabated, it may become more
difficult to build or eliminate significant positions in small, lightly traded
stocks without affecting their value.
While there is no guarantee that the fund will continue to meet its objectives,
limiting the money in the fund gives manager Stacie Cowell the flexibility to
pursue the best investments, wherever she may find them. We have every
confidence that the fund's reliance on bottom-up stock selection and a strict
growth discipline will continue to provide investors with solid results.
--------------------------------------------------------------------------------
VOLATILITY CREATES OPPORTUNITY
Of course, the downside to investing in "small-cap stocks is that they can be
especially vulnerable in a correction. The steep drop in the Nasdaq Composite
that occurred in April reflected how volatile the stocks of many fast-growing
young companies can be. Many of these small growth companies had become
dependent on periodic infusions of cash from the equity markets to fund their
operations. As it became clear that this spigot would tighten considerably,
investors fled for the exits.
While we were unable to escape this fallout entirely, the correction appeared to
open up some opportunities for us as well. As in all periods of either panic or
euphoria, investors proved somewhat indiscriminate in their selling, punishing
strong companies with good financing and cash flow alongside those that appeared
speculative. While this took a toll on our portfolio, it also allowed us to buy
additional shares in the most promising companies at prices that were much more
reasonable. While we cannot report that all these stocks have returned to their
highs, we are optimistic that they will resume their climb once interest rate
worries and other concerns are behind us.
/s/ Stacie L. Cowell
Stacie L. Cowell, CFA
Vice President
<PAGE>
VALUE EQUITY FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
--------------------------------------------------------------------------------
Dear Shareholder:
The fund experienced another difficult year during the fiscal year ended July
31, 2000. We have long been warning that the market has become too reliant on a
small group of highly valued technology stocks, and that eventually sanity was
bound to return to valuations. In fact, we saw a correction in April, when the
technology-laden Nasdaq Composite dropped sharply, while the broader indexes,
such as the Dow Jones Industrial Average and S&P 500 Index, moved only modestly
lower. Unfortunately, while our fund benefited as low-cost, value stocks became
more attractive, we were unable to compensate for the significant
underperformance we endured through the first seven months of the fiscal year.
For the one-year period ended July 31, 2000, the value of Investor Class shares
declined 6.52%. This lagged the S&P 500 Index, which rose 8.97% over the same
period. (Of course, past performance is no guarantee of future results.)(1),(2)
CAUTION ABOUT TECHNOLOGY
Throughout much of the past year, our relatively low exposure to the technology
sector hindered fund performance. Most technology stocks remained extremely
expensive by traditional value measures. While enthusiasts of this "New Economy"
have argued that previously acceptable valuation tools make no sense in the
Internet Age, we suspected that, to the contrary, the market would return to
patterns that have persisted for decades. Historically, new eras have come and
gone, and we were uncomfortable with current technology valuations.
Of course, our opposition to buying overvalued stocks does not equate to an
opposition to investing in technology, a fast-growing sector with some very
attractive companies. We used the technology correction in April to add to our
exposure to the sector, albeit with mixed success. Our holdings in Sun
Microsystems, Intel Corp and Oracle Corp, three well-established technology
firms that had been largely ignored by investors as many of their competitors
shot upward on the markets, proved to be highly beneficial. Other holdings,
however, such as Computer Associates International and Microsoft Corp, moved
lower.
--------------------------------------------------------------------------------
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 CAPITAL MANAGEMENT IN 1992, 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 CAPITAL MANAGEMENT IN 1992, AND
STARTED MANAGING THIS FUND IN 1993. HE ALSO IS A CHARTERED FINANCIAL ANALYST.
<PAGE>
GOOD NEWS FROM FINANCIALS
In comparison, financial stocks have been much more reasonably valued, given the
rising short-term interest rate environment, which usually causes profit worries
for banks and other companies that borrow and lend money. Our heavy exposure to
the financial sector paid off for us, as the diversified financial services
firms Citigroup Inc, Morgan Stanley Dean Witter, and American International
Group all moved higher. Interest rate concerns caused a pullback in the shares
of the Federal National Mortgage Association, however.
While many of our gains came from a narrow range of stocks, our losses resulted
from small declines in a number of holdings. Fears that economic slowdown would
cause consumers to tighten their belts caused many of our retail holdings, such
as the retail building supply company Lowe's Cos and the warehouse merchandiser
Costco, to move lower. An increasingly violent battle over long distance rates
took its toll on several of our communications holdings, including Sprint Corp
and WorldCom Inc. Finally, basic materials stocks moved lower as investors
anticipated reduced demand, and commodity prices -- with the notable exception
of oil -- failed to move higher.
Overall, this has been a frustrating year for the fund, but we remain convinced
that our portfolio is positioned in high-quality companies that will continue to
see their businesses improve as the economy continues to grow.
/s/ Michael C. Harhai /s/ Terrence Irrgang
Michael C. Harhai, CFA Terrence Irrgang, CFA
Portfolio Manager Portfolio Manager
<PAGE>
S&P 500 INDEX FUND (INSTITUTIONAL CLASS AND INVESTOR CLASS)
A NOTE ABOUT INDEX FUNDS AT INVESCO
--------------------------------------------------------------------------------
INVESCO's S&P 500 Index Fund is designed to track the performance of the S&P 500
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. 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, 2000, the value of Institutional Class
(formerly Class I) shares rose 8.47%, while the value of Investor Class
(formerly Class II) shares rose 8.34%. These returns tracked that of the S&P 500
over the same period, which rose 8.97%. (Of course, past performance is not a
guarantee of future results.)(1),(2)
<PAGE>
INVESCO | ANNUAL REPORT | JULY 31, 2000
MOVING FORWARD
--------------------------------------------------------------------------------
AN INTERVIEW WITH GROWTH TEAM LEADER TIM MILLER
TIM MILLER IS CHIEF INVESTMENT OFFICER AT INVESCO FUNDS. HE MANAGES DYNAMICS
FUND, AND HE OVERSEES THE GROWTH TEAM THAT MANAGES DYNAMICS, SMALL COMPANY
GROWTH, BLUE CHIP GROWTH, INVESCO ENDEAVOR AND GROWTH & INCOME FUNDS.
TIM, MARKETS HAVE BEEN VERY VOLATILE RECENTLY, CREATING A CHALLENGING
ENVIRONMENT FOR MANY INVESTORS.
TIM MILLER: Well, there is no question that markets have been volatile this
year, creating difficulties for managers or investors who lack a clear
investment discipline. Yet, in some ways, this volatility has actually played in
our favor here at INVESCO Funds. Last year's tremendous market gains left
valuations of many shares stretched, and they were hard to sustain in the face
of continuing Federal Reserve interest rate tightening. As a result, the market
corrected sharply in the second quarter, leaving many stocks trading at
attractive valuations. We took advantage of this correction to rebuild positions
on some of our favorite growth companies. This strategy paid off as many of
these shares rebounded strongly, supported by what turned out to be a robust
earnings season for the kind of high-quality growth companies we focus on.
WHAT GAVE YOU THE CONFIDENCE TO MAINTAIN YOUR INVESTMENT POSITIONS EVEN DURING
THIS VOLATILE PERIOD?
TIM MILLER: We rely on hands-on, bottom-up research to identify the highest
quality growth companies we can find. At the same time, we use exacting
financial models and valuation measures to determine that we are investing in a
stock at the right time. We only invest in companies that gain our complete
confidence. Then, we believe in staying the course with them through their
entire life cycle as a growth company--regardless of short-term market
fluctuations.
INTEREST RATE FEARS SEEMED TO HAVE FADED RECENTLY, BUT CONCERNS HAVE NOW SHIFTED
TO THE THREAT OF A SLOWING ECONOMY.
TIM MILLER: There is no question that an economic slowdown will have an impact
on certain stocks in certain industries, and that prospect has kept markets
volatile recently. In our view, however, this slowdown will fall hardest on Old
Economy shares -- cyclically sensitive companies that we generally don't invest
in anyway.
That said, we are optimistic about the market outlook going forward, especially
because it appears that the end of Fed interest rate tightening may be in sight.
But most importantly, we are confident that we are invested in the kinds of
companies that can perform well in any kind of economic environment. We continue
to focus on leading companies in dynamic growth areas such as technology,
biotechnology and telecommunications equipment. We are particularly upbeat about
companies capitalizing on the build out of telecommunications and data networks.
These include leading providers of optical networking equipment, Internet
infrastructure and analog semiconductors used to translate voice signals into
data. We are also finding compelling growth opportunities in the financial
services industry, as well as in the energy sector, where tight capacity is
setting the stage for a multiyear investment cycle that will benefit oil and gas
equipment and service companies.
DO YOU HAVE ANY PLANS TO ADJUST YOUR OVERALL STRATEGY TO CHANGING MARKET
CONDITIONS?
TIM MILLER: I believe that the success of our funds during this challenging
period validates our commitment to a disciplined growth philosophy. We are not
market timers, and we don't believe in reacting defensively or rotating from
sector to sector trying to chase performance. Rather than allowing ourselves to
be whipped around by the volatility, we have stayed true to our discipline of
investing in great companies. This strategy served us well over the past year,
and we believe it will continue to do so, in any kind of environment.
<PAGE>
INVESCO | ANNUAL REPORT | JULY 31, 2000
MARKET HEADLINES: AUGUST 1999 THROUGH JULY 2000
For most of the past year, the major story in the financial markets has been the
tremendous disparity between the performance of "New Economy" growth stocks --
particularly technology, telecommunications, and media companies -- and lagging
"Old Economy" shares in sectors such as financial services, industrial products
and basic materials. Against this backdrop, the technology-intensive Nasdaq
Composite far outpaced the more Old Economy-based S&P 500 Index and Dow Jones
Industrial Average. This dichotomy persisted through the first two months of
2000 despite the fact that many New Economy shares were trading at lofty
valuations that appeared harder to justify in an environment of rising interest
rates.
At the same time, there were signs that the "virtuous economy" -- neither too
hot nor too cold -- was finally starting to heat up. Labor markets remained
tight, and wage pressures were simmering, while consumers were studying the
impressive balances on their investment statements and spending like never
before. Meanwhile, economies in Europe and Asia were picking up steam, and oil
prices surged to new highs. With the global economy firing on all cylinders,
inflation became the dominant concern. The Federal Reserve responded to these
pressures by tightening credit conditions. Between June of 1999 and May of 2000,
the Fed raised short-term interest rates six times -- for a total of 1.75% --
culminating in a 0.50% rate increase in May.
For a time, it appeared that growth stocks really did enjoy a Teflon(TM)
coating, as valuations on many technology, telecommunication and biotechnology
stocks surged to new highs despite rising interest rates and heightened economic
uncertainty. Yet the New Economy onslaught hit a wall in April, as interest rate
fears and rumblings out of Washington triggered a sell-off in biotechnology
stocks that quickly spread to other New Economy stalwarts.
Between March 10 and May 24, 2000, the Nasdaq endured a sell-off of historic
proportions, as investors rotated out of growth stocks to revisit many defensive
and value-oriented issues.
Signs that the economy was starting to cool helped ease interest rate concerns
in late May, however, alleviating pressure on equity markets. Job growth slowed
dramatically, while vehicle and home sales also softened. Investors began to
hope that an end to interest rate hikes was in sight and revisited many of the
New Economy shares sold off during the spring correction. Growth stocks rallied
in June, aided by the Fed's widely anticipated decision to leave interest rates
unchanged.
These gains proved short-lived, however, as the market entered the July earnings
reporting season. While a number of cyclical companies scaled back earnings
estimates to reflect a potential economic slowdown, the market was also buffeted
by unexpected earnings warnings from several technology and health sciences
bellwethers. By late July, the market was caught in a catch-22 as investors
weighed the risks of additional Fed interest rates hikes against the threat of
weaker economic growth and lagging earnings. This has created a volatile market
in which investors reward companies that exceed expectations, while sharply
punishing those that misstep. It is truly a stock-picker's environment, and one
we believe plays to our strengths at INVESCO Funds. We are confident that our
reliance on bottom-up stock selection, industry diversification, and strict
style discipline will continue to provide investors with solid returns going
forward.
<PAGE>
(1) PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FOR THE PERIODS
INDICATED. 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
INDICATIVE OF THE MID- AND SMALL-CAPITALIZATION STOCK MARKETS RESPECTIVELY. THE
DOW JONES INDUSTRIAL AVERAGE REFLECTS LARGE-CAPITALIZATION STOCKS. THE NASDAQ
COMPOSITE IS AN UNMANAGED INDEX OF STOCKS TRADED OVER-THE-COUNTER. THE S&P/BARRA
400 GROWTH INDEX IS AN UNMANAGED INDEX REFLECTING PERFORMANCE OF 400
MEDIUM-SIZED GROWTH STOCKS.
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
DESCRIPTION VALUE
-----------------------------------------------------------------
BLUE CHIP GROWTH FUND
America Online $198,289,446
Palm Inc 147,839,874
Pfizer Inc 90,515,063
Schwab (Charles) Corp 85,453,688
VeriSign Inc 78,371,313
Cisco Systems 75,955,924
SDL Inc 75,347,269
Corning Inc 65,830,012
Nortel Networks 65,390,500
Maxim Integrated Products 64,275,509
DYNAMICS FUND
SDL Inc $173,531,250
Forest Laboratories 160,500,000
PMC-Sierra Inc 114,580,125
Siebel Systems 113,970,000
Brocade Communications Systems 105,746,000
Applied Micro Circuits 93,191,700
Ariba Inc 92,981,875
ALZA Corp 92,035,650
VeriSign Inc 88,071,563
i2 Technologies 87,613,687
GROWTH & INCOME FUND
Pfizer Inc $12,692,809
General Electric 10,228,347
Citigroup Inc 9,659,795
SDL Inc 7,739,494
Gemstar-TV Guide International 6,190,712
Intel Corp 6,096,945
Nortel Networks 6,083,875
Cisco Systems 6,041,190
American International Group 5,992,301
AT&T Corp-Liberty Media Group Class A Shrs 5,575,850
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS (CONTINUED)
DESCRIPTION VALUE
--------------------------------------------------------------------------------
INVESCO ENDEAVOR FUND
America Online $ 24,257,187
Palm Inc 14,146,626
Pfizer Inc 12,249,656
VeriSign Inc 11,425,500
JDS Uniphase 10,867,500
Siebel Systems 10,730,000
Genentech Inc 10,648,750
PMC-Sierra Inc 9,693,750
Nortel Networks 9,252,250
Nokia Corp Sponsored ADR Representing Ord Shrs 9,022,025
S&P 500 INDEX FUND
General Electric $ 3,767,643
Cisco Systems 3,367,676
Intel Corp 3,303,858
Microsoft Corp 2,720,593
Exxon Mobil 2,058,800
Pfizer Inc 2,009,539
Wal-Mart Stores 1,810,740
Citigroup Inc 1,762,581
Nortel Networks 1,627,920
Oracle Corp 1,581,344
SMALL COMPANY GROWTH FUND
IONA Technologies PLC Sponsored ADR Representing Ord Shrs $ 25,971,425
Semtech Corp 22,853,438
City National 21,432,104
Pinnacle Holdings 21,379,344
REMEC Inc 20,045,680
Harrah's Entertainment 20,019,925
Polycom Inc 19,664,348
IntraNet Solutions 19,406,142
Business Objects SA Sponsored ADR Representing Ord Shrs 18,049,500
International FiberCom 17,458,812
VALUE EQUITY FUND
Intel Corp $ 8,517,300
Citigroup Inc 8,037,069
General Electric 7,839,075
Exxon Mobil 7,071,200
WorldCom Inc 5,865,234
ADC Telecommunications 5,737,050
Morgan Stanley Dean Witter & Co 5,493,250
American International Group 5,245,598
Johnson & Johnson 5,016,069
Marsh & McLennan 4,819,000
Composition of holdings is subject to change.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENT SECURITIES
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
BLUE CHIP GROWTH FUND
98.30 COMMON STOCKS
7.15 BIOTECHNOLOGY--HEALTH CARE
Affymetrix Inc(a) 53,300 $ 7,277,948
Amgen Inc(a) 237,700 15,435,644
Celgene Corp(a) 749,000 38,901,187
Genentech Inc(a) 370,500 56,362,312
MedImmune Inc(a) 489,800 29,143,100
=============================================================================================
147,120,191
2.50 BROADCASTING
Clear Channel Communications(a) 159,185 12,127,907
General Motors Class H Shrs(a) 1,517,700 39,270,487
=============================================================================================
1,398,394
5.61 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
CIENA Corp(a) 85,400 12,137,475
Corvis Corp(a) 216,700 17,840,505
Nokia Corp Sponsored ADR Representing Ord Shrs 456,000 20,206,500
Nortel Networks 879,200 65,390,500
=============================================================================================
115,574,980
13.48 COMPUTER RELATED
Cisco Systems(a) 1,160,740 75,955,924
Dell Computer(a) 717,350 31,518,566
EMC Corp(a) 327,300 27,861,412
Juniper Networks(a) 185,800 26,464,887
Redback Networks(a) 278,000 36,140,000
Sun Microsystems(a) 455,400 48,016,238
Sycamore Networks(a) 256,300 31,604,994
=============================================================================================
277,562,021
7.48 COMPUTER--SOFTWARE & SERVICES
Exodus Communications(a) 345,200 15,339,825
Intuit Inc(a) 1,113,230 37,849,820
i2 Technologies(a) 288,480 37,430,280
Microsoft Corp(a) 640,960 44,747,020
Oracle Corp(a) 246,100 18,503,644
=============================================================================================
153,870,589
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
10.62 ELECTRONICS--SEMICONDUCTOR
Intel Corp 436,040 $ 29,105,670
Maxim Integrated Products(a) 972,950 64,275,509
PMC-Sierra Inc(a) 114,500 22,198,688
SDL Inc(a) 217,100 75,347,269
Xilinx Inc(a) 369,100 27,705,569
=============================================================================================
218,632,705
2.65 FINANCIAL
Citigroup Inc 773,157 54,555,891
=============================================================================================
8.83 HEALTH CARE DRUGS--PHARMACEUTICALS
Forest Laboratories(a) 410,300 43,902,100
King Pharmaceuticals(a) 717,500 21,614,687
Millennium Pharmaceuticals(a) 266,540 25,654,475
Pfizer Inc 2,098,900 90,515,063
=============================================================================================
181,686,325
4.15 INVESTMENT BANK/BROKER FIRM
Schwab (Charles) Corp 2,365,500 85,453,688
=============================================================================================
3.20 MANUFACTURING
Corning Inc 281,400 65,830,012
=============================================================================================
2.52 RETAIL
eBay Inc(a) 503,500 25,175,000
Home Depot 515,482 26,676,194
=============================================================================================
51,851,194
23.67 SERVICES
America Online(a) 3,719,380 198,289,446
Ariba Inc(a) 241,800 28,033,687
Palm Inc(a) 3,790,766 147,839,874
VeriSign Inc(a) 493,872 78,371,313
Yahoo! Inc(a) 269,400 34,668,413
=============================================================================================
487,202,733
2.44 TELECOMMUNICATIONS--CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 898,300 50,248,656
=============================================================================================
2.39 TELECOMMUNICATIONS--LONG DISTANCE
Qwest Communications International(a) 1,048,500 49,213,969
=============================================================================================
1.61 TELEPHONE
McLeodUSA Inc Class A Shrs(a) 1,953,000 33,078,937
=============================================================================================
TOTAL COMMON STOCKS (Cost $1,581,069,189) 2,023,280,285
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
1.70 SHORT-TERM INVESTMENTS--REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $35,006,232
(Collateralized by US Treasury Notes due 6/30/2003
at 5.375%, value $35,705,350) (Cost $35,000,000) $ 35,000,000 $ 35,000,000
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,616,069,189)
(Cost for Income Tax Purposes $1,637,314,990) $2,058,280,285
=============================================================================================
DYNAMICS FUND
95.48 COMMON STOCKS
0.79 BANKS
Northern Trust 835,800 $ 62,580,525
=============================================================================================
6.58 BIOTECHNOLOGY--HEALTH CARE
Abgenix Inc(a) 1,390,400 69,693,800
Affymetrix Inc(a) 425,000 58,032,422
Celgene Corp(a) 1,353,950 70,320,778
COR Therapeutics(a) 983,800 79,995,237
ImClone Systems(a) 465,300 34,025,063
Medarex Inc(a) 313,300 22,831,737
MedImmune Inc(a) 1,192,900 70,977,550
Protein Design Labs(a) 554,400 67,186,350
Sepracor Inc(a) 465,570 49,234,028
=============================================================================================
522,296,965
2.94 BROADCASTING
AMFM Inc(a) 400,000 28,575,000
Citadel Communications(a) 574,775 17,207,327
EchoStar Communications Class A Shrs(a) 1,747,200 68,905,200
Entercom Communications(a) 987,400 38,323,462
General Motors Class H Shrs(a) 1,320,000 34,155,000
Hispanic Broadcasting(a) 710,000 27,024,375
Westwood One(a) 700,000 19,468,750
=============================================================================================
233,659,114
1.37 CABLE
Cablevision Systems Class A Shrs(a) 807,000 53,110,687
NTL Inc(a) 245,312 11,054,372
USA Networks(a) 2,109,600 44,433,450
=============================================================================================
108,598,509
2.33 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
CIENA Corp(a) 520,000 73,905,000
Comverse Technology(a) 755,000 66,251,250
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Copper Mountain Networks(a) 295,500 $ 23,302,945
Metasolv Software(a) 450,000 21,206,250
=============================================================================================
184,665,445
4.24 COMPUTER RELATED
American Power Conversion(a) 375,000 9,539,062
Brocade Communications Systems(a) 592,000 105,746,000
Extreme Networks(a) 450,700 62,936,030
Network Appliance(a) 839,060 72,316,484
Redback Networks(a) 659,900 85,787,000
=============================================================================================
336,324,576
14.26 COMPUTER--SOFTWARE & SERVICES
Adobe Systems 475,000 54,387,500
Alteon Websystems(a) 218,200 28,788,762
Art Technology Group(a) 972,400 84,598,800
BEA Systems(a) 1,254,000 54,000,375
BroadVision Inc(a) 745,500 26,977,781
Exodus Communications(a) 1,646,300 73,157,456
InfoSpace Inc(a) 750,000 25,312,500
Inktomi Corp(a) 547,200 58,550,400
InterNAP Network Services(a) 792,200 27,021,447
Intuit Inc(a) 789,500 26,843,000
i2 Technologies(a) 675,250 87,613,687
Macromedia Inc(a) 542,700 41,516,550
Mercury Interactive(a) 836,100 82,995,989
Peregrine Systems(a) 1,707,000 42,568,313
Portal Software(a) 697,000 35,100,484
Rational Software(a) 410,600 41,778,550
RealNetworks Inc(a) 1,083,000 45,959,813
Siebel Systems(a) 786,000 113,970,000
Software.com Inc(a) 315,000 31,775,625
Symantec Corp(a) 660,000 33,825,000
TIBCO Software(a) 490,000 50,470,000
Vignette Corp(a) 1,296,000 43,902,000
Vitria Technology(a) 436,150 20,608,088
=============================================================================================
1,131,722,120
0.80 CONSUMER FINANCE
Countrywide Credit Industries 470,000 16,538,125
SLM Holding 1,083,400 46,653,913
=============================================================================================
63,192,038
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
3.07 ELECTRICAL EQUIPMENT
Flextronics International Ltd(a) 991,100 $ 70,166,783
Jabil Circuit(a) 500,000 25,031,250
Molex Inc 1,290,062 60,693,386
Power-One Inc(a) 65,000 7,674,063
Sanmina Corp(a) 865,000 80,336,875
=============================================================================================
243,902,357
11.47 ELECTRONICS--SEMICONDUCTOR
Altera Corp(a) 637,000 62,545,437
Applied Micro Circuits(a) 624,400 93,191,700
Linear Technology 1,096,000 60,554,000
LSI Logic(a) 860,100 29,135,887
Maxim Integrated Products(a) 1,128,900 74,577,956
Microchip Technology(a) 759,940 52,768,334
PMC-Sierra Inc(a) 591,000 114,580,125
RF Micro Devices(a) 579,500 43,752,250
SDL Inc(a) 500,000 173,531,250
TranSwitch Corp(a) 924,000 73,804,500
Vitesse Semiconductor(a) 824,000 49,131,000
Xilinx Inc(a) 1,104,000 82,869,000
=============================================================================================
910,441,439
0.75 ENTERTAINMENT
Gemstar-TV Guide International(a) 976,000 59,353,000
=============================================================================================
0.49 EQUIPMENT--SEMICONDUCTOR
KLA-Tencor Corp(a) 379,000 20,181,750
Novellus Systems(a) 341,600 18,425,050
=============================================================================================
38,606,800
3.47 FINANCIAL
Ambac Financial Group 1,087,800 70,095,112
Capital One Financial 504,600 29,582,175
Edwards (AG) Inc 1,162,100 61,446,038
Providian Financial 458,200 46,707,763
Stilwell Financial(a) 1,532,000 67,503,750
=============================================================================================
275,334,838
2.04 GAMING
Harrah's Entertainment(a) 3,316,800 83,127,300
MGM Grand 2,192,000 78,775,000
=============================================================================================
161,902,300
7.80 HEALTH CARE DRUGS--PHARMACEUTICALS
Allergan Inc 1,084,500 72,593,719
ALZA Corp(a) 1,421,400 92,035,650
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Andrx Corp(a) 100,000 $ 7,806,250
Forest Laboratories(a) 1,500,000 160,500,000
Human Genome Sciences(a) 539,000 65,117,938
Inhale Therapeutic Systems(a) 708,500 57,521,344
IVAX Corp(a) 1,014,200 49,949,350
Jones Pharma 535,000 17,487,812
King Pharmaceuticals(a) 620,000 18,677,500
Millennium Pharmaceuticals(a) 802,580 77,248,325
=============================================================================================
618,937,888
1.51 HEALTH CARE RELATED
Genzyme Corp-General Division(a) 685,000 47,564,687
PE Corp-PE Biosystems Group 832,200 72,557,438
=============================================================================================
120,122,125
0.64 INSURANCE
MGIC Investment 449,100 25,514,494
Radian Group 410,000 24,958,750
=============================================================================================
50,473,244
3.13 INVESTMENT BANK/BROKER FIRM
Bear Stearns 476,400 25,666,050
Donaldson Lufkin & Jenrette 350,500 18,072,656
Lehman Brothers Holdings 258,190 29,014,101
Paine Webber Group 505,600 35,012,800
Price (T Rowe) Associates 1,307,100 53,427,713
Waddell & Reed Financial
Class A Shrs 1,351,734 44,269,289
Class B Shrs 1,378,020 43,235,378
=============================================================================================
248,697,987
9.83 OIL & GAS RELATED
Anadarko Petroleum 883,000 42,218,437
Apache Corp 1,343,100 66,819,225
BJ Services(a) 1,115,000 65,088,125
Canadian Natural Resources(a) 570,000 16,515,345
Coflexip SA Sponsored ADR Representing 1/2 Ord Shr 349,500 20,249,156
Cooper Cameron(a) 1,145,700 74,040,862
Diamond Offshore Drilling 255,000 9,578,437
ENSCO International 775,000 26,156,250
Global Industries Ltd(a) 712,400 8,905,000
Global Marine(a) 1,165,000 32,984,062
Grant Prideco(a) 1,282,000 25,800,250
Kerr-McGee Corp 250,600 13,751,675
Nabors Industries(a) 1,415,400 58,916,025
Noble Drilling(a) 1,629,000 70,963,313
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Santa Fe International 2,063,000 $ 72,462,875
Smith International(a) 1,108,000 79,083,500
Transocean Sedco Forex 450,000 22,275,000
Varco International(a) 698,750 12,053,438
Vastar Resources 49,150 4,051,803
Weatherford International(a) 1,457,000 58,371,063
=============================================================================================
780,283,841
0.19 PERSONAL CARE
Estee Lauder Class A Shrs 350,000 15,400,000
=============================================================================================
0.87 PUBLISHING
New York Times Class A Shrs 699,900 28,827,131
Valassis Communications(a) 1,199,800 40,343,275
=============================================================================================
69,170,406
1.67 RETAIL
Best Buy(a) 460,000 33,465,000
Kohl's Corp(a) 1,116,400 63,355,700
RadioShack Corp 626,400 35,313,300
=============================================================================================
132,134,000
10.22 SERVICES
Ariba Inc(a) 802,000 92,981,875
CSG Systems International(a) 761,000 40,475,687
Go2Net Inc(a) 570,000 33,665,625
Lamar Advertising Class A Shrs(a) 382,900 17,469,812
Omnicom Group 657,000 55,845,000
Palm Inc(a) 1,675,000 65,325,000
Paychex Inc 1,909,050 87,339,038
Proxicom Inc(a) 810,500 33,483,781
Robert Half International(a) 2,277,200 78,278,750
Sapient Corp(a) 401,000 45,613,750
SEI Investments 678,400 37,142,400
TMP Worldwide(a) 1,011,900 72,856,800
VeriSign Inc(a) 555,000 88,071,563
WPP Group PLC 1,990,000 26,987,731
Young & Rubicam 630,000 35,595,000
=============================================================================================
811,131,812
0.78 TELECOMMUNICATIONS--CELLULAR & WIRELESS
Crown Castle International(a) 901,300 30,644,200
Western Wireless Class A Shrs(a) 574,000 31,570,000
=============================================================================================
62,214,200
1.04 TELECOMMUNICATIONS--LONG DISTANCE
Allegiance Telecom(a) 692,550 38,479,809
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Nextel Partners(a) 1,385,000 $ 43,714,063
=============================================================================================
82,193,872
3.20 TELEPHONE
Amdocs Ltd(a) 1,102,000 74,040,625
AT&T Canada Class B Depository Receipts(a) 600,000 17,700,000
Citizens Communications(a) 1,450,000 24,287,500
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 300,000 38,025,000
McLeodUSA Inc Class A Shrs(a) 3,102,600 52,550,287
RCN Corp(a) 71,600 1,557,300
Time Warner Telecom Class A Shrs(a) 745,300 46,162,019
=============================================================================================
254,322,731
TOTAL COMMON STOCKS (Cost $5,329,441,678) 7,577,662,132
=============================================================================================
4.52 SHORT-TERM INVESTMENTS
1.04 COMMERCIAL PAPER
1.04 FINANCIAL
American General Finance, 6.640%, 8/1/2000 $ 30,000,000 30,000,000
General Electric Capital, 6.640%, 8/1/2000 $ 53,000,000 53,000,000
=============================================================================================
TOTAL COMMERCIAL PAPER (Cost $83,000,000) 83,000,000
=============================================================================================
2.78 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund
6.440% (Cost $220,455,382) 220,455,382 220,455,382
=============================================================================================
0.70 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $1,327,236
(Collateralized by US Treasury Bonds, due 11/15/2016
at 7.500%, value $1,356,299) $ 1,327,000 1,327,000
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $54,009,615
(Collateralized by US Treasury Notes, due 6/30/2003
at 5.375%, value $55,089,234) $ 54,000,000 54,000,000
=============================================================================================
TOTAL REPURCHASE AGREEMENTS (Cost $55,327,000) 55,327,000
=============================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $358,782,382) 358,782,382
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $5,688,224,060)
(Cost for Income Tax Purposes $5,724,658,676) $7,936,444,514
=============================================================================================
GROWTH & INCOME FUND
97.97 COMMON STOCKS
3.91 BIOTECHNOLOGY-- HEALTH CARE
Affymetrix Inc(a) 5,700 $ 778,317
Amgen Inc(a) 26,300 1,707,856
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Genentech Inc(a) 19,000 $ 2,890,375
MedImmune Inc(a) 42,700 2,540,650
=============================================================================================
7,917,198
4.15 BROADCASTING
General Motors Class H Shrs(a) 195,500 5,058,562
Infinity Broadcasting Class A Shrs(a) 62,855 2,215,639
Univision Communications Class A Shrs(a) 9,200 1,143,100
=============================================================================================
8,417,301
2.75 CABLE
AT&T Corp-Liberty Media Group Class A Shrs(a) 250,600 5,575,850
=============================================================================================
5.30 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
CIENA Corp(a) 5,400 767,475
Comverse Technology(a) 25,100 2,202,525
Metromedia Fiber Network Class A Shrs(a) 48,400 1,694,000
Nortel Networks 81,800 6,083,875
=============================================================================================
10,747,875
9.83 COMPUTER RELATED
Brocade Communications Systems(a) 6,100 1,089,612
Cisco Systems(a) 92,320 6,041,190
Dell Computer(a) 38,035 1,671,163
EMC Corp(a) 48,760 4,150,695
Network Appliance(a) 21,800 1,878,887
Redback Networks(a) 15,700 2,041,000
Sun Microsystems(a) 28,800 3,036,600
=============================================================================================
19,909,147
4.91 COMPUTER--SOFTWARE & SERVICES
BEA Systems(a) 39,600 1,705,275
i2 Technologies(a) 12,595 1,634,201
Oracle Corp(a) 48,100 3,616,519
Siebel Systems(a) 14,200 2,059,000
VERITAS Software(a) 9,100 927,631
=============================================================================================
9,942,626
1.07 CONSUMER FINANCE
American Express 38,365 2,174,816
=============================================================================================
6.28 ELECTRICAL EQUIPMENT
Flextronics International Ltd(a) 19,900 1,408,858
General Electric 198,850 10,228,347
Sanmina Corp(a) 11,700 1,086,637
=============================================================================================
12,723,842
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
10.53 ELECTRONICS--SEMICONDUCTOR
Altera Corp(a) 8,900 $ 873,869
Applied Micro Circuits(a) 19,400 2,895,450
Intel Corp 91,340 6,096,945
Oak Technology(a) 51,500 1,184,500
PMC-Sierra Inc(a) 7,900 1,531,613
SDL Inc(a) 22,300 7,739,494
Xilinx Inc(a) 13,600 1,020,850
=============================================================================================
21,342,721
6.34 ENTERTAINMENT
Gemstar-TV Guide International(a) 101,800 6,190,712
Time Warner 40,520 3,107,378
Viacom Inc Class B Shrs(a) 53,500 3,547,719
=============================================================================================
12,845,809
4.77 FINANCIAL
Citigroup Inc 136,897 9,659,795
=============================================================================================
12.70 HEALTH CARE DRUGS--PHARMACEUTICALS
Allergan Inc 13,400 896,962
ALZA Corp(a) 16,500 1,068,375
Elan Corp PLC Sponsored ADR Representing Ord Shrs(a) 29,400 1,571,063
Forest Laboratories(a) 16,900 1,808,300
IVAX Corp(a) 21,800 1,073,650
Johnson & Johnson 18,205 1,694,203
Pfizer Inc 294,326 12,692,809
Pharmacia Corp 38,500 2,107,875
Teva Pharmaceutical Industries Sponsored ADR
Representing Ord Shrs 46,400 2,818,800
=============================================================================================
25,732,037
0.63 HEALTH CARE RELATED
PE Corp-PE Biosystems Group 14,600 1,272,937
=============================================================================================
2.96 INSURANCE
American International Group 68,337 5,992,301
=============================================================================================
1.83 INVESTMENT BANK/BROKER FIRM
Morgan Stanley Dean Witter & Co 30,500 2,783,125
Price (T Rowe) Associates 22,600 923,775
=============================================================================================
3,706,900
4.47 MANUFACTURING
Corning Inc 20,800 4,865,900
Tyco International Ltd 78,300 4,189,050
=============================================================================================
9,054,950
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
2.51 NATURAL GAS
El Paso Energy 59,800 $ 2,892,825
Enron Corp 29,855 2,198,074
=============================================================================================
5,090,899
1.93 RETAIL
Home Depot 17,795 920,891
Wal-Mart Stores 54,280 2,982,008
=============================================================================================
3,902,899
1.62 SERVICES
Robert Half International(a) 48,100 1,653,437
VeriSign Inc(a) 10,300 1,634,481
=============================================================================================
3,287,918
3.77 TELECOMMUNICATIONS--CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 88,000 4,922,500
VoiceStream Wireless(a) 15,800 2,026,350
WinStar Communications(a) 23,100 698,775
=============================================================================================
7,647,625
2.71 TELECOMMUNICATIONS--LONG DISTANCE
Allegiance Telecom(a) 26,300 1,461,294
Qwest Communications International(a) 85,700 4,022,544
=============================================================================================
5,483,838
3.00 TELEPHONE
Amdocs Ltd(a) 35,400 2,378,438
McLeodUSA Inc Class A Shrs(a) 99,600 1,686,975
NEXTLINK Communications Class A Shrs(a) 61,200 2,023,425
=============================================================================================
6,088,838
TOTAL COMMON STOCKS (Cost $168,870,390) 198,518,122
=============================================================================================
2.03 SHORT-TERM INVESTMENTS--REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at 4,118,733
(Collateralized by US Treasury Bonds, due 11/15/2016
at 7.500%, value $4,196,504) (Cost $4,118,000) $ 4,118,000 4,118,000
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $172,988,390)
(Cost for Income Tax Purposes $174,659,368) $202,636,122
=============================================================================================
INVESCO ENDEAVOR FUND
98.98 COMMON STOCKS
0.08 AGRICULTURAL PRODUCTS
US Home & Garden(a) 125,000 $ 312,500
=============================================================================================
5.32 BIOTECHNOLOGY-- HEALTH CARE
Abgenix Inc(a) 20,000 1,002,500
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Celgene Corp(a) 84,000 $ 4,362,750
COR Therapeutics(a) 15,000 1,219,687
Genentech Inc(a) 70,000 10,648,750
IDEC Pharmaceuticals(a) 7,500 921,094
Medarex Inc(a) 25,900 1,887,463
Protein Design Labs(a) 7,400 896,788
=============================================================================================
20,939,032
1.73 BROADCASTING
AMFM Inc(a) 41,700 2,978,944
Clear Channel Communications(a) 50,000 3,809,375
=============================================================================================
6,788,319
1.17 CABLE
AT&T Corp-Liberty Media Group Class A Shrs(a) 206,000 4,583,500
=============================================================================================
12.66 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
Comverse Technology(a) 73,020 6,407,505
Corvis Corp(a) 74,400 6,125,212
Digital Microwave(a) 103,200 2,805,750
Gilat Satellite Networks Ltd(a) 16,000 1,280,000
JDS Uniphase(a) 92,000 10,867,500
Nokia Corp Sponsored ADR Representing Ord Shrs 203,600 9,022,025
Nortel Networks 124,400 9,252,250
REMEC Inc(a) 157,500 4,031,019
=============================================================================================
49,791,261
12.21 COMPUTER RELATED
Cisco Systems(a) 116,600 7,630,012
Dell Computer(a) 164,000 7,205,750
EMC Corp(a) 70,000 5,958,750
Juniper Networks(a) 60,400 8,603,225
Redback Networks(a) 47,600 6,188,000
Sun Microsystems(a) 67,000 7,064,313
Sycamore Networks(a) 30,000 3,699,375
3Com Corp(a) 123,000 1,668,188
=============================================================================================
48,017,613
9.34 COMPUTER SOFTWARE & SERVICES
BEA Systems(a) 66,000 2,842,125
Cysive Inc(a) 49,200 1,180,800
Exodus Communications(a) 112,000 4,977,000
Inktomi Corp(a) 26,200 2,803,400
i2 Technologies(a) 35,300 4,580,175
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Mercury Interactive(a) 55,800 $ 5,539,022
Siebel Systems(a) 74,000 10,730,000
Symantec Corp(a) 80,000 4,100,000
=============================================================================================
36,752,522
0.48 ELECTRONICS
Alpha Industries(a) 55,800 1,900,687
=============================================================================================
8.75 ELECTRONICS--SEMICONDUCTOR
Altera Corp(a) 44,260 4,345,779
Applied Micro Circuits(a) 33,000 4,925,250
Maxim Integrated Products(a) 107,000 7,068,687
PMC-Sierra Inc(a) 50,000 9,693,750
Xilinx Inc(a) 112,000 8,407,000
=============================================================================================
34,440,466
4.22 ENTERTAINMENT
Gemstar-TV Guide International(a) 91,381 5,557,107
Time Warner 38,300 2,937,131
Viacom Inc Class B Shrs(a) 70,000 4,641,875
Disney (Walt) Co 90,000 3,481,875
=============================================================================================
16,617,988
0.76 EQUIPMENT--SEMICONDUCTOR
Credence Systems(a) 70,000 2,992,500
=============================================================================================
1.69 FINANCIAL
Citigroup Inc 94,290 6,653,338
=============================================================================================
7.49 HEALTH CARE DRUGS--PHARMACEUTICALS
ALZA Corp(a) 35,000 2,266,250
DUSA Pharmaceuticals(a) 120,000 3,345,000
Forest Laboratories(a) 60,000 6,420,000
Human Genome Sciences(a) 11,500 1,389,344
Millennium Pharmaceuticals(a) 20,020 1,926,925
Pfizer Inc 284,050 12,249,656
Titan Pharmaceuticals(a) 55,000 1,873,438
=============================================================================================
29,470,613
0.78 HEALTH CARE RELATED
Incyte Genomics(a) 8,700 659,569
Physiometrix Inc(a) 54,636 1,297,605
Targeted Genetics(a) 110,000 1,093,125
=============================================================================================
3,050,299
1.77 INSURANCE BROKERS
Marsh & McLennan 57,000 6,954,000
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
1.01 MANUFACTURING
Corning Inc 17,000 $ 3,976,937
=============================================================================================
7.06 OIL & GAS RELATED
Atwood Oceanics(a) 110,300 4,632,600
Cooper Cameron(a) 65,000 4,200,625
Grey Wolf(a) 350,000 1,618,750
Nabors Industries(a) 129,500 5,390,438
Schlumberger Ltd 60,000 4,436,250
Smith International(a) 105,000 7,494,375
=============================================================================================
27,773,038
1.05 PUBLISHING
Harcourt General 75,000 4,139,062
=============================================================================================
1.75 RETAIL
Home Depot 68,700 3,555,225
RadioShack Corp 59,000 3,326,125
=============================================================================================
6,881,350
17.05 SERVICES
America Online(a) 455,000 24,257,187
Ariba Inc(a) 41,000 4,753,437
HotJobs.com Ltd(a) 62,000 1,088,875
IntraNet Solutions(a) 132,380 4,997,345
Palm Inc(a) 362,734 14,146,626
VeriSign Inc(a) 72,000 11,425,500
Yahoo! Inc(a) 49,760 6,403,490
=============================================================================================
67,072,460
1.14 TELECOMMUNICATIONS--CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 80,000 4,475,000
=============================================================================================
1.47 TELEPHONE
Amdocs Ltd(a) 55,000 3,695,313
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 16,600 2,104,050
=============================================================================================
5,799,363
TOTAL COMMON STOCKS (Cost $289,155,236) 389,381,848
=============================================================================================
1.02 SHORT-TERM INVESTMENTS--REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $4,000,712
(Collateralized by US Treasury Bonds, due 8/15/2019
at 8.125%, value $4,001,776) (Cost $4,000,000) $ 4,000,000 4,000,000
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $293,155,236)
(Cost for Income Tax Purposes $295,757,638) $ 393,381,848
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
S&P 500 INDEX FUND
98.30 COMMON STOCKS
1.10 AEROSPACE & DEFENSE
Boeing Co 6,756 $ 331,044
General Dynamics 1,534 86,575
Goodrich (BF) Co 710 25,338
Honeywell International 5,936 199,598
Lockheed Martin 3,056 85,950
Northrop Grumman 518 36,810
Raytheon Co Class B Shrs 2,647 64,190
United Technologies 3,606 210,500
=============================================================================================
1,040,005
0.09 AIR FREIGHT
FedEx Corp(a) 2,232 88,443
=============================================================================================
0.21 AIRLINES
AMR Corp(a) 1,020 33,724
Delta Air Lines 998 53,580
Southwest Airlines 3,844 90,815
US Airways Group(a) 513 20,135
=============================================================================================
198,254
0.20 ALUMINUM
Alcoa Inc 6,400 193,600
=============================================================================================
0.20 AUTO PARTS
AutoZone Inc(a) 1,021 23,355
Cooper Tire & Rubber 511 5,717
Cummins Engine 300 9,600
Dana Corp 1,307 29,979
Genuine Parts 1,325 26,583
Goodyear Tire & Rubber 1,103 21,991
Johnson Controls 612 31,786
TRW Inc 817 36,714
=============================================================================================
185,725
0.82 AUTOMOBILES
Ford Motor 8,888 413,847
General Motors 3,964 225,700
Harley-Davidson Inc 2,200 98,725
Navistar International(a) 400 14,275
PACCAR Inc 500 22,281
=============================================================================================
774,828
4.49 BANKS
AmSouth Bancorp 2,950 49,597
Bank of America 12,289 582,191
Bank of New York 5,494 257,188
Bank One 8,443 268,593
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
BB&T Corp 2,880 $ 71,820
Chase Manhattan 9,131 453,697
Comerica Inc 1,103 56,253
Fifth Third Bancorp 3,499 144,552
First Union 7,222 186,418
Firstar Corp 7,191 142,022
FleetBoston Financial 6,678 239,156
Huntington Bancshares 1,841 28,881
KeyCorp 3,388 59,502
Mellon Financial 3,634 136,956
Morgan (JP) & Co 1,217 162,470
National City 4,480 79,520
Northern Trust 1,600 119,800
Old Kent Financial 1,050 28,219
PNC Financial Services Group 2,300 117,013
Regions Financial 1,700 33,894
SouthTrust Corp 1,300 32,013
State Street 1,106 111,015
Summit Bancorp 1,200 29,475
SunTrust Banks 2,238 107,144
Synovus Financial 2,086 37,548
Union Planters 1,000 28,688
US Bancorp 5,583 107,124
Wachovia Corp 1,534 84,370
Wells Fargo & Co 11,966 494,345
=============================================================================================
4,249,464
2.11 BEVERAGES
Anheuser-Busch Cos 3,522 283,521
Brown-Forman Corp Class B Shrs 500 25,000
Coca-Cola Co 18,324 1,123,490
Coca-Cola Enterprises 3,300 63,319
Coors (Adolph) Co Class B Shrs 200 12,600
PepsiCo Inc 10,696 490,011
=============================================================================================
1,997,941
0.69 BIOTECHNOLOGY--HEALTH CARE
Amgen Inc(a) 7,648 496,642
Biogen Inc(a) 1,100 58,300
MedImmune Inc(a) 1,600 95,200
=============================================================================================
650,142
0.20 BROADCASTING
Clear Channel Communications(a) 2,528 192,602
=============================================================================================
0.28 BUILDING MATERIALS
Armstrong Holdings 300 4,800
Crane Co 450 9,900
Lowe's Cos 2,830 119,391
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Masco Corp 3,416 $ 67,466
Owens Corning 400 2,200
Sherwin-Williams Co 1,324 27,556
Vulcan Materials 700 29,969
=============================================================================================
261,282
0.24 CABLE
Comcast Corp Class A Shrs(a) 6,598 224,435
=============================================================================================
0.90 CHEMICALS
Air Products & Chemicals 1,744 58,206
Dow Chemical 4,947 142,226
du Pont (EI) de Nemours 8,622 390,684
Eastman Chemical 511 23,953
Englehard Corp 820 14,811
Grace (WR) & Co(a) 520 5,135
Great Lakes Chemical 400 11,750
Hercules Inc 713 10,650
PPG Industries 1,217 49,517
Praxair Inc 1,122 44,389
Rohm & Haas 1,576 40,976
Sigma-Aldrich Corp 714 19,457
Union Carbide 917 41,093
=============================================================================================
852,847
4.83 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 5,400 226,462
Advanced Micro Devices(a) 1,020 73,376
Andrew Corp(a) 513 14,460
Comverse Technology(a) 1,200 105,300
JDS Uniphase(a) 6,900 815,062
Lucent Technologies 24,099 1,054,331
Nortel Networks 21,888 1,627,920
QUALCOMM Inc(a) 5,500 357,156
Scientific-Atlanta Inc 1,222 94,094
Tellabs Inc(a) 3,138 203,970
=============================================================================================
4,572,131
10.77 COMPUTER RELATED
Adaptec Inc(a) 700 17,325
American Power Conversion(a) 1,500 38,156
Apple Computer(a) 2,436 123,779
Cabletron Systems(a) 1,422 37,150
Cisco Systems(a) 51,464 3,367,676
Compaq Computer 12,585 353,167
Dell Computer(a) 19,112 839,733
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
EMC Corp(a) 16,104 $ 1,370,853
Gateway Inc(a) 2,700 149,006
Hewlett-Packard Co 7,383 806,131
International Business Machines 13,076 1,470,233
Lexmark International Class A Shrs(a) 900 40,556
NCR Corp(a) 700 24,806
Network Appliance(a) 2,300 198,231
Novell Inc(a) 2,549 24,534
Seagate Technology(a) 1,534 77,755
Sun Microsystems(a) 11,708 1,234,462
Unisys Corp(a) 2,325 22,814
=============================================================================================
10,196,367
5.56 COMPUTER--SOFTWARE & SERVICES
Adobe Systems 820 93,890
Autodesk Inc 400 8,650
BMC Software(a) 1,800 33,975
Citrix Systems(a) 1,400 21,350
Computer Associates International 4,576 113,542
Compuware Corp(a) 2,800 22,400
Mercury Interactive(a) 600 59,559
Microsoft Corp(a) 38,970 2,720,593
Oracle Corp(a) 21,032 1,581,344
Parametric Technology(a) 2,136 21,360
PeopleSoft Inc(a) 1,947 42,469
Sabre Holdings 937 22,898
Siebel Systems(a) 1,600 232,000
VERITAS Software(a) 2,900 295,619
=============================================================================================
5,269,649
0.23 CONGLOMERATES
Fortune Brands 1,124 25,290
National Service Industries 300 6,131
Unilever NV New York Registered Shrs 4,253 188,195
=============================================================================================
219,616
0.86 CONSUMER FINANCE
American Express 10,215 579,063
Countrywide Credit Industries 815 28,678
Household International 3,552 158,286
SLM Holding 1,100 47,369
=============================================================================================
813,396
0.12 CONTAINERS
Ball Corp 200 6,937
Bemis Inc 400 13,750
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Crown Cork & Seal 1,018 $ 14,188
Owens-Illinois Inc(a) 1,020 13,579
Pactiv Corp(a) 1,324 12,247
Sealed Air(a) 519 26,145
Temple-Inland Inc 400 17,375
Tupperware Corp 400 7,775
=============================================================================================
111,996
0.02 DISTRIBUTION
SUPERVALU Inc 1,100 19,456
=============================================================================================
1.76 ELECTRIC UTILITIES
AES Corp(a) 3,200 171,000
Ameren Corp 914 33,075
American Electric Power 2,503 82,130
CINergy Corp 1,122 29,172
CMS Energy 800 20,450
Consolidated Edison 1,654 50,137
Constellation Energy Group 1,021 34,012
CP&L Energy 1,121 37,483
Dominion Resources 2,067 93,919
DTE Energy 1,020 32,002
Duke Energy 2,836 174,946
Edison International 2,653 52,231
Entergy Corp 1,834 49,747
FirstEnergy Corp 1,732 44,166
Florida Progress 700 34,300
FPL Group 1,419 68,467
GPU Inc 817 21,650
New Century Energies 800 27,350
Niagara Mohawk Holdings(a) 1,320 17,573
Northern States Power 1,200 26,475
PECO Energy 1,431 61,086
PG&E Corp 2,961 76,616
Pinnacle West Capital 600 23,738
PPL Corp 1,023 27,621
Public Service Enterprise Group 1,632 54,876
Reliant Energy 2,240 75,040
Southern Co 4,796 117,202
TXU Corp 2,062 64,438
Unicom Corp 1,630 66,932
=============================================================================================
1,667,834
4.78 ELECTRICAL EQUIPMENT
Agilent Technologies(a) 3,559 145,029
Emerson Electric 3,291 200,957
General Electric 73,247 3,767,643
Grainger (WW) Inc 626 19,875
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Molex Inc 1,375 $ 64,689
Rockwell International 1,337 46,879
Sanmina Corp(a) 1,000 92,875
Solectron Corp(a) 4,400 177,375
Thomas & Betts 400 7,800
=============================================================================================
4,523,122
0.04 ELECTRONICS
PerkinElmer Inc 300 19,181
Tektronix Inc 300 18,450
Teledyne Technologies(a) 95 1,894
=============================================================================================
39,525
6.58 ELECTRONICS--SEMICONDUCTOR
Altera Corp(a) 1,500 147,281
Analog Devices(a) 2,700 180,562
Broadcom Corp Class A Shrs(a) 1,700 381,225
Conexant Systems(a) 1,700 54,400
Intel Corp 49,496 3,303,858
Linear Technology 2,300 127,075
LSI Logic(a) 2,240 75,880
Maxim Integrated Products(a) 2,200 145,337
Micron Technology(a) 4,260 347,190
Motorola Inc 15,908 525,958
National Semiconductor(a) 1,323 47,876
Texas Instruments 12,124 711,527
Xilinx Inc(a) 2,400 180,150
=============================================================================================
6,228,319
0.02 ENGINEERING & CONSTRUCTION
Fluor Corp 512 15,264
McDermott International 400 2,975
=============================================================================================
18,239
2.43 ENTERTAINMENT
Disney (Walt) Co 15,429 596,909
Seagram Co Ltd 3,350 187,809
Time Warner 10,036 769,636
Viacom Inc Class B Shrs(a) 11,306 749,729
=============================================================================================
2,304,083
0.68 EQUIPMENT--SEMICONDUCTOR
Applied Materials(a) 6,302 478,164
KLA-Tencor Corp(a) 1,424 75,828
Novellus Systems(a) 200 10,788
Teradyne Inc(a) 1,200 76,050
=============================================================================================
640,830
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
3.28 FINANCIAL
Associates First Capital Class A Shrs 5,432 $ 142,250
Capital One Financial 1,500 87,937
CIT Group Class A Shrs 2,000 37,000
Citigroup Inc 24,979 1,762,581
Fannie Mae 7,497 373,913
Franklin Resources 1,900 68,162
Freddie Mac 5,156 203,340
MBIA Inc 712 39,649
MBNA Corp 5,943 198,348
Providian Financial 1,119 114,068
Stilwell Financial(a) 1,800 79,313
=============================================================================================
3,106,561
1.18 FOODS
Archer-Daniels-Midland Co 4,418 41,419
Bestfoods Inc 2,088 145,377
Campbell Soup 3,300 87,450
ConAgra Inc 3,766 76,968
General Mills 2,208 75,900
Heinz (HJ) Co 2,741 109,469
Hershey Foods 994 45,972
Kellogg Co 3,070 79,628
Nabisco Group Holdings 2,500 66,250
Quaker Oats 919 61,803
Ralston Purina Group 2,410 48,652
Sara Lee 6,430 118,553
Sysco Corp 2,524 99,383
Wrigley (William) Jr Co 776 58,976
=============================================================================================
1,115,800
0.10 FOOTWEAR
NIKE Inc Class B Shrs 2,091 91,481
Reebok International Ltd(a) 400 6,750
=============================================================================================
98,231
0.02 GAMING
Harrah's Entertainment(a) 914 22,907
=============================================================================================
0.12 GOLD & PRECIOUS METALS MINING
Barrick Gold 3,052 48,641
Freeport-McMoRan Copper & Gold Class B Shrs(a) 1,127 10,143
Homestake Mining 1,920 10,440
Newmont Mining 1,322 23,466
Placer Dome 2,433 20,681
=============================================================================================
113,371
0.03 HARDWARE & TOOLS
Snap-on Inc 400 12,075
Stanley Works 612 16,027
=============================================================================================
28,102
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
8.36 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 11,504 $ 478,854
Allergan Inc 1,000 66,937
ALZA Corp(a) 692 44,807
American Home Products 9,654 512,265
Bristol-Myers Squibb 14,606 724,823
Johnson & Johnson 10,283 956,962
Lilly (Eli) & Co 8,528 885,846
Longs Drug Stores 300 6,075
Merck & Co 16,974 1,216,824
Pfizer Inc 46,598 2,009,539
Pharmacia Corp 9,369 512,953
Schering-Plough Corp 10,862 469,103
Watson Pharmaceuticals(a) 600 33,150
=============================================================================================
7,918,138
1.80 HEALTH CARE RELATED
Bard (CR) Inc 300 15,019
Bausch & Lomb 400 24,875
Baxter International 2,184 169,806
Becton Dickinson & Co 1,934 48,833
Biomet Inc 916 40,991
Boston Scientific(a) 3,156 52,271
Cardinal Health 2,019 148,396
Guidant Corp(a) 2,294 129,324
HCA - Healthcare Corp 4,090 139,060
HEALTHSOUTH Corp(a) 2,855 16,952
Humana Inc(a) 1,323 9,674
Mallinckrodt Inc 410 18,757
Manor Care(a) 700 6,912
McKesson HBOC 2,086 50,716
Medtronic Inc 8,816 450,167
PE Corp-PE Biosystems Group 1,600 139,500
Quintiles Transnational(a) 800 12,550
St Jude Medical(a) 613 25,286
Tenet Healthcare 2,300 70,006
UnitedHealth Group 1,224 100,139
Wellpoint Health Networks(a) 400 34,875
=============================================================================================
1,704,109
0.02 HOMEBUILDING
Centex Corp 400 9,575
Kaufman & Broad Home 300 5,869
Pulte Corp 300 6,881
=============================================================================================
22,325
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
0.07 HOUSEHOLD FURNITURE & APPLIANCES
Leggett & Platt 1,500 $ 26,250
Maytag Corp 613 20,765
Whirlpool Corp 500 21,594
=============================================================================================
68,609
1.00 HOUSEHOLD PRODUCTS
Black & Decker 613 22,796
Clorox Co 1,836 75,850
Colgate-Palmolive Co 4,288 238,788
Newell Rubbermaid 2,053 55,303
Procter & Gamble 9,682 550,664
=============================================================================================
943,401
2.97 INSURANCE
Aetna Inc 998 55,389
AFLAC Inc 2,000 103,875
Allstate Corp 5,464 150,601
American General 1,860 124,039
American International Group 17,055 1,495,510
Aon Corp 1,915 68,940
Chubb Corp 1,359 100,566
CIGNA Corp 1,347 134,532
Cincinnati Financial 1,145 43,224
Conseco Inc 2,441 19,223
Hartford Financial Services Group 1,756 112,823
Jefferson-Pilot Corp 715 43,615
Lincoln National 1,534 66,921
Loews Corp 776 48,694
MGIC Investment 775 44,030
Progressive Corp 519 34,903
SAFECO Corp 920 21,218
St Paul Cos 1,732 76,966
Torchmark Corp 920 22,885
UnumProvident Corp 1,830 42,090
=============================================================================================
2,810,044
0.25 INSURANCE BROKERS
Marsh & McLennan 1,968 240,096
=============================================================================================
1.84 INVESTMENT BANK/BROKER FIRM
Bear Stearns 850 45,794
Lehman Brothers Holdings 800 89,900
Merrill Lynch & Co 2,819 364,356
Morgan Stanley Dean Witter & Co 8,378 764,493
Paine Webber Group 1,000 69,250
Price (T Rowe) Associates 800 32,700
Schwab (Charles) Corp 10,383 375,086
=============================================================================================
1,741,579
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
0.06 IRON & STEEL
Allegheny Technologies 662 $ 13,695
Bethlehem Steel(a) 916 4,236
Nucor Corp 612 23,103
USX-US Steel Group 612 10,978
Worthington Industries 614 6,485
=============================================================================================
58,497
0.11 LEISURE TIME
Brunswick Corp 614 11,551
Carnival Corp 4,800 89,700
=============================================================================================
101,251
0.11 LODGING--HOTELS
Hilton Hotels 2,735 28,034
Marriott International Class A Shrs 1,868 74,720
=============================================================================================
102,754
0.37 MACHINERY
Briggs & Stratton 200 7,037
Caterpillar Inc 2,644 90,061
Cooper Industries 617 19,783
Danaher Corp 1,000 50,937
Deere & Co 1,766 68,101
Dover Corp 1,446 66,245
Ingersoll-Rand Co 1,123 44,078
Timken Co 400 7,125
=============================================================================================
353,367
1.88 MANUFACTURING
Corning Inc 2,135 499,457
Eaton Corp 511 34,652
FMC Corp(a) 200 12,050
Illinois Tool Works 2,187 125,206
ITT Industries 617 20,284
Millipore Corp 300 18,863
Minnesota Mining & Manufacturing 3,068 276,312
Pall Corp 818 16,974
Parker-Hannifin Corp 716 25,463
Textron Inc 1,008 57,519
Thermo Electron(a) 1,321 27,411
Tyco International Ltd 12,366 661,581
=============================================================================================
1,775,772
0.11 METALS MINING
Alcan Aluminium Ltd 1,732 56,831
Inco Ltd(a) 1,523 22,369
Phelps Dodge 579 23,558
=============================================================================================
102,758
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
0.85 NATURAL GAS
Coastal Corp 1,630 $ 94,132
Columbia Energy Group 550 37,537
Eastern Enterprises 200 12,525
El Paso Energy 1,612 77,980
Enron Corp 5,418 398,900
NICOR Inc 300 10,406
ONEOK Inc 200 5,338
Peoples Energy 200 6,338
Sempra Energy 1,518 28,463
Williams Cos 3,310 138,193
=============================================================================================
809,812
0.27 OFFICE EQUIPMENT & SUPPLIES
Avery Dennison 814 44,159
Office Depot(a) 2,500 15,625
Pitney Bowes 1,990 68,904
Staples Inc(a) 3,900 53,869
Xerox Corp 4,928 73,304
=============================================================================================
255,861
5.18 OIL & GAS RELATED
Amerada Hess 613 37,086
Anadarko Petroleum 1,780 85,106
Apache Corp 913 45,422
Ashland Inc 500 16,469
Baker Hughes 2,394 82,892
Burlington Resources 1,825 59,541
Chevron Corp 4,831 381,649
Conoco Inc Class B Shrs 4,595 105,972
Exxon Mobil 25,735 2,058,800
Halliburton Co 3,396 156,641
Kerr-McGee Corp 716 39,290
Occidental Petroleum 2,847 57,652
Phillips Petroleum 1,873 95,172
Rowan Cos(a) 612 15,453
Royal Dutch Petroleum New York Registry 1.25 Gldr Shrs 15,908 926,641
Schlumberger Ltd 4,225 312,386
Sunoco Inc 600 14,625
Texaco Inc 4,077 201,557
Tosco Corp 1,000 26,500
Transocean Sedco Forex 1,440 71,280
Unocal Corp 1,862 56,326
USX-Marathon Group 2,289 55,651
=============================================================================================
4,902,111
0.63 PAPER & FOREST PRODUCTS
Boise Cascade 400 11,050
Fort James 1,537 46,975
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Georgia-Pacific Corp 1,326 $ 32,901
International Paper 3,192 108,528
Kimberly-Clark Corp 4,276 245,603
Louisiana-Pacific Corp 715 6,927
Mead Corp 715 18,143
Potlatch Corp 200 6,875
Westvaco Corp 714 19,590
Weyerhaeuser Co 1,731 79,085
Willamette Industries 716 21,704
=============================================================================================
597,381
0.35 PERSONAL CARE
Alberto-Culver Co Class B Shrs 400 12,150
Avon Products 1,774 70,406
Gillette Co 7,736 225,794
International Flavors & Fragrances 715 19,126
=============================================================================================
327,476
0.14 PHOTOGRAPHY & IMAGING
Eastman Kodak 2,313 126,926
Polaroid Corp 300 5,438
=============================================================================================
132,364
0.10 POLLUTION CONTROL
Allied Waste Industries(a) 1,500 13,969
Waste Management 4,553 85,084
=============================================================================================
99,053
0.50 PUBLISHING
American Greetings Class A Shrs 410 6,970
Donnelley (RR) & Sons 1,020 22,695
Dow Jones & Co 613 40,420
Gannett Co 2,086 112,383
Harcourt General 510 28,146
Knight-Ridder Inc 512 26,688
McGraw-Hill Cos 1,528 90,820
Meredith Corp 400 12,725
New York Times Class A Shrs 1,226 50,496
Tribune Co 2,434 79,105
=============================================================================================
470,448
0.28 RAILROADS
Burlington Northern Santa Fe 3,509 85,751
CSX Corp 1,643 40,767
Norfolk Southern 2,953 55,000
Union Pacific 1,862 80,415
=============================================================================================
261,933
0.44 RESTAURANTS
Darden Restaurants 921 15,024
McDonald's Corp 9,904 311,976
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Starbucks Corp(a) 1,400 $ 52,500
Tricon Global Restaurants(a) 1,021 24,695
Wendy's International 818 13,855
=============================================================================================
418,050
5.20 RETAIL
Albertson's Inc 3,266 98,592
Bed Bath & Beyond(a) 1,100 40,494
Best Buy(a) 1,600 116,400
Circuit City Stores-Circuit City Group 1,528 35,048
Consolidated Stores(a) 729 8,702
Costco Wholesale(a) 3,380 110,061
CVS Corp 3,026 119,338
Dillard's Inc Class A Shrs 715 9,787
Dollar General 2,397 44,045
Federated Department Stores(a) 1,638 39,414
Gap Inc 6,294 225,404
Great Atlantic & Pacific Tea 300 4,312
Home Depot 17,090 884,407
Kmart Corp 3,768 26,376
Kohl's Corp(a) 2,600 147,550
Kroger Co(a) 6,134 126,897
Limited Inc 3,358 68,629
May Department Stores 2,428 57,665
Nordstrom Inc 1,000 17,500
Penney (J C) Co 1,864 30,057
RadioShack Corp 1,528 86,141
Safeway Inc(a) 3,900 175,744
Sears Roebuck & Co 2,957 88,340
Target Corp 6,772 196,388
Tiffany & Co 1,200 41,100
TJX Cos 2,346 39,296
Toys "R" Us(a) 1,840 30,360
Wal-Mart Stores 32,960 1,810,740
Walgreen Co 7,446 232,222
Water Pik Technologies(a) 33 237
Winn-Dixie Stores 1,021 14,613
=============================================================================================
4,925,859
0.23 SAVINGS & LOAN
Charter One Financial 1,600 34,500
Golden West Financial 1,245 57,270
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Washington Mutual 4,061 $ 130,460
=============================================================================================
222,230
3.10 SERVICES
America Online(a) 17,000 906,312
Automatic Data Processing 4,884 242,063
Block (H&R) Inc 615 19,680
Cendant Corp(a) 5,319 68,150
Ceridian Corp(a) 1,022 23,250
Computer Sciences(a) 1,302 81,375
Convergys Corp(a) 1,200 54,075
Deluxe Corp 511 10,986
Dun & Bradstreet 1,124 33,228
Ecolab Inc 1,000 35,812
Electronic Data Systems 3,400 146,200
Equifax Inc 1,021 24,121
First Data 3,260 150,164
IMS Health 2,312 41,761
Interpublic Group 2,136 85,573
Omnicom Group 1,343 114,155
Palm Inc(a) 4,227 164,853
Paychex Inc 2,700 123,525
Ryder System 500 10,438
Sapient Corp(a) 500 56,875
Yahoo! Inc(a) 4,000 514,750
Young & Rubicam 500 28,250
=============================================================================================
2,935,596
0.73 TELECOMMUNICATIONS--CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 5,400 302,063
Sprint Corp-PCS Group Series 1 Shrs(a) 7,082 391,281
=============================================================================================
693,344
1.97 TELECOMMUNICATIONS--LONG DISTANCE
AT&T Corp 27,809 860,341
Global Crossing Ltd(a) 6,497 157,958
Qwest Communications International(a) 13,237 621,312
Sprint Corp 6,464 230,280
=============================================================================================
1,869,891
3.80 TELEPHONE
ALLTEL Corp 2,670 164,539
BellSouth Corp 13,902 553,473
CenturyTel Inc 1,100 32,244
SBC Communications 25,172 1,071,383
Verizon Communications 20,115 945,405
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
WorldCom Inc(a) 21,177 $ 827,227
=============================================================================================
3,594,271
0.04 TEXTILE--APPAREL MANUFACTURING
Liz Claiborne 400 15,600
Russell Corp 200 3,938
VF Corp 817 17,974
=============================================================================================
37,512
0.00 TEXTILE--HOME FURNISHINGS
Springs Industries Class A Shrs 100 3,225
=============================================================================================
0.47 TOBACCO
Philip Morris 16,892 426,523
UST Inc 1,226 17,777
=============================================================================================
444,300
0.05 TOYS
Hasbro Inc 1,477 16,801
Mattel Inc 3,191 35,300
=============================================================================================
52,101
0.08 TRUCKS & PARTS
Delphi Automotive Systems 4,130 61,176
Visteon Corp 1,142 15,988
=============================================================================================
77,164
TOTAL COMMON STOCKS (Cost $80,651,787) 93,091,785
=============================================================================================
1.70 SHORT-TERM INVESTMENTS
0.32 US GOVERNMENT OBLIGATIONS
US Treasury Bills, 5/31/2001(b) (Amortized Cost $304,350) $ 320,000 304,350
=============================================================================================
1.38 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $1,305,232
(Collateralized by US Treasury Bonds, due 11/15/2016
at 7.500%, value $1,333,213) (Cost $1,305,000) $ 1,305,000 1,305,000
=============================================================================================
TOTAL SHORT-TERM INVESTMENTS (Amortized Cost $1,609,350) 1,609,350
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $82,261,137)
(Cost for Income Tax Purposes $83,713,309) $ 94,701,135
=============================================================================================
SMALL COMPANY GROWTH FUND
86.66 COMMON STOCKS
0.91 AEROSPACE & DEFENSE
Titan Corp(a) 451,400 $ 13,400,938
=============================================================================================
1.12 AIRLINES
Atlas Air(a) 371,600 16,489,750
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
1.45 BANKS
City National 584,180 $21,432,104
=============================================================================================
4.51 BIOTECHNOLOGY--HEALTH CARE
Celgene Corp(a) 281,700 14,630,794
Cephalon Inc(a) 206,000 8,304,375
Emisphere Technologies(a) 197,200 5,250,450
Medarex Inc(a) 90,800 6,617,050
MGI Pharma(a) 450,300 12,383,250
NPS Pharmaceuticals(a) 267,350 7,552,638
Protein Design Labs(a) 47,300 5,732,169
Trimeris Inc(a) 105,300 6,015,263
=============================================================================================
66,485,989
2.68 BROADCASTING
Citadel Communications(a) 415,500 12,439,031
Emmis Communications Class A Shrs(a) 336,400 12,131,425
Pegasus Communications(a) 354,800 14,990,300
=============================================================================================
39,560,756
7.90 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
Com21 Inc(a) 192,500 3,368,750
Digital Lightwave(a) 85,300 7,458,419
Digital Microwave(a) 537,600 14,616,000
Gilat Satellite Networks Ltd(a) 72,000 5,760,000
Natural MicroSystems(a) 81,200 9,048,725
NICE Systems Ltd Sponsored ADR Representing Ord Shrs(a) 143,000 10,474,750
Polycom Inc(a) 207,300 19,664,348
REMEC Inc(a) 783,225 20,045,680
Tekelec(a) 401,800 15,770,650
Tollgrade Communications(a) 38,400 4,031,400
ViaSat Inc(a) 126,400 6,256,800
=============================================================================================
116,495,522
1.47 COMPUTER RELATED
CacheFlow Inc(a) 185,100 12,586,800
C-COR.net Corp(a) 342,200 9,046,912
=============================================================================================
21,633,712
13.39 COMPUTER SOFTWARE & SERVICES
Agile Software(a) 165,000 9,126,562
Alteon Websystems(a) 84,800 11,188,300
AppNet Inc(a) 196,400 6,505,750
Art Technology Group(a) 64,100 5,576,700
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Blue Martini Software(a) 34,700 $ 2,062,481
Business Objects SA Sponsored ADR Representing Ord Shrs(a) 191,000 18,049,500
DSET Corp(a) 338,200 9,934,625
IONA Technologies PLC Sponsored ADR Representing Ord Shrs(a) 369,700 25,971,425
JDA Software Group(a) 418,900 6,807,125
Macromedia Inc(a) 96,700 7,397,550
Mercury Interactive(a) 97,200 9,648,619
NetIQ Corp(a) 234,962 11,336,917
New Era of Networks(a) 97,200 2,430,000
Numerical Technologies(a) 113,400 5,287,275
OTG Software(a) 202,600 6,761,775
Packeteer Inc(a) 380,200 14,637,700
Peregrine Systems(a) 503,200 12,548,550
Precise Software Solutions Ltd(a) 307,400 6,455,400
Selectica Inc(a) 97,000 5,019,750
SmartForce PLC Sponsored ADR Representing Ord Shrs(a) 295,000 13,053,750
Tumbleweed Communications(a) 168,500 7,582,500
=============================================================================================
197,382,254
2.75 ELECTRONICS
Alpha Industries(a) 286,000 9,741,875
Anaren Microwave(a) 81,250 5,895,703
Benchmark Electronics(a) 212,400 8,734,950
Manufacturers' Services Ltd(a) 456,200 10,606,650
SMTC Corp(a) 307,400 5,552,413
=============================================================================================
40,531,591
9.41 ELECTRONICS--SEMICONDUCTOR
Aeroflex Inc(a) 590,375 16,899,484
Cree Inc(a) 47,300 5,318,294
Elantec Semiconductor(a) 130,500 9,502,031
Exar Corp(a) 148,530 13,785,441
Oak Technology(a) 488,500 11,235,500
OmniVision Technologies(a) 157,300 3,578,575
Plexus Corp(a) 77,000 8,686,563
Semtech Corp(a) 285,000 22,853,438
Silicon Image(a) 163,700 8,676,100
TelCom Semiconductor(a) 325,900 7,373,488
TranSwitch Corp(a) 193,250 15,435,844
Virata Corp(a) 97,800 6,259,200
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Zoran Corp(a) 208,000 $ 9,178,000
=============================================================================================
138,781,958
2.82 EQUIPMENT--SEMICONDUCTOR
Advanced Energy Industries(a) 117,900 5,305,500
American Xtal Technology(a) 344,200 12,262,125
Brooks Automation(a) 144,100 7,150,962
Cymer Inc(a) 134,300 6,093,863
Integrated Silicon Solution(a) 280,800 5,896,800
LTX Corp(a) 222,000 4,884,000
=============================================================================================
41,593,250
1.36 GAMING
Harrah's Entertainment(a) 798,800 20,019,925
=============================================================================================
3.29 HEALTH CARE DRUGS--PHARMACEUTICALS
Accredo Health(a) 285,850 9,433,050
Alkermes Inc(a) 224,900 7,449,812
DUSA Pharmaceuticals(a) 366,030 10,203,086
Inhale Therapeutic Systems(a) 108,300 8,792,606
Jones Pharma 387,700 12,672,944
=============================================================================================
48,551,498
6.23 HEALTH CARE RELATED
ArthroCare Corp(a) 371,300 13,482,831
Invitrogen Corp(a) 180,100 11,301,275
Molecular Devices(a) 196,300 15,409,550
Noven Phamaceuticals(a) 565,800 16,054,575
ORATEC Interventions(a) 220,500 7,607,250
Professional Detailing(a) 277,200 10,256,400
Province Healthcare(a) 381,800 16,369,675
Rita Medical Systems(a) 103,800 1,291,013
=============================================================================================
91,772,569
2.02 INVESTMENT BANK/BROKER FIRM
Affiliated Managers Group(a) 275,000 13,045,312
Dain Rauscher 247,300 16,770,031
=============================================================================================
29,815,343
0.90 LEISURE TIME
Intrawest Corp 318,800 6,515,475
Steiner Leisure Ltd(a) 345,000 6,684,375
=============================================================================================
13,199,850
0.75 MACHINERY
Applied Power Class A Shrs 278,200 11,006,287
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
6.21 OIL & GAS RELATED
Atwood Oceanics(a) 347,800 $ 14,607,600
Dril-Quip Inc(a) 198,200 7,915,612
Evergreen Resources(a) 349,600 9,570,300
Louis Dreyfus Natural Gas(a) 649,500 16,887,000
Newfield Exploration(a) 240,600 8,195,438
Precision Drilling(a) 438,000 14,946,750
Stolt Offshore SA(a) 963,400 13,126,325
Unit Corp(a) 508,000 6,350,000
=============================================================================================
91,599,025
0.52 PERSONAL CARE
Playtex Products(a) 633,600 7,682,400
=============================================================================================
1.07 POLLUTION CONTROL
Tetra Tech(a) 630,000 15,789,375
=============================================================================================
2.95 RETAIL
California Amplifier(a) 225,500 7,483,781
Callaway Golf 768,400 9,653,025
Cost Plus(a) 412,500 13,741,406
Insight Enterprises(a) 273,600 12,654,000
=============================================================================================
43,532,212
4.85 SERVICES
Corporate Executive Board(a) 102,600 6,566,400
Internet Security Systems(a) 176,000 13,002,000
IntraNet Solutions(a) 514,070 19,406,142
Jack Henry & Associates 311,440 13,975,870
ProsoftTraining.com(a) 400,400 6,106,100
Proxicom Inc(a) 301,900 12,472,244
=============================================================================================
71,528,756
3.08 TELECOMMUNICATIONS--CELLULAR & WIRELESS
BreezeCom Ltd(a) 287,000 10,116,750
Leap Wireless International(a) 219,400 13,904,475
Pinnacle Holdings(a) 380,500 21,379,344
=============================================================================================
45,400,569
1.13 TELECOMMUNICATIONS--LONG DISTANCE
Dycom Industries(a) 389,475 16,650,056
=============================================================================================
2.90 TELEPHONE
CTC Communications Group(a) 429,650 11,144,047
Inet Technologies(a) 156,600 7,360,200
International FiberCom(a) 901,100 17,458,812
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Westell Technologies Class A Shrs(a) 278,900 $ 6,711,031
=============================================================================================
42,674,090
0.99 TEXTILE--HOME FURNISHINGS
Linens 'n Things(a) 486,600 14,567,587
=============================================================================================
TOTAL COMMON STOCKS (Cost $1,095,383,348) 1,277,577,366
=============================================================================================
13.34 SHORT-TERM INVESTMENTS
7.80 COMMERCIAL PAPER
7.80 CONSUMER FINANCE
American Express Credit, 6.500%, 8/3/2000 $40,000,000 40,000,000
General Motors Acceptance, 6.650%, 8/1/2000 $30,000,000 30,000,000
Household Finance, 6.420%, 8/1/2000 $45,000,000 45,000,000
=============================================================================================
TOTAL COMMERCIAL PAPER (Cost $115,000,000) 115,000,000
=============================================================================================
5.54 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund
6.440% (Cost $81,743,436) 81,743,436 81,743,436
=============================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $196,743,436) 196,743,436
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,292,126,784)
(Cost for Income Tax Purposes $1,303,123,293) $ 1,474,320,802
=============================================================================================
VALUE EQUITY FUND
98.93 COMMON STOCKS
1.56 AEROSPACE & DEFENSE
Honeywell International 35,200 $ 1,183,600
United Technologies 45,800 2,673,575
=============================================================================================
3,857,175
0.87 ALUMINUM
Alcoa Inc 71,500 2,162,875
=============================================================================================
0.34 AUTO PARTS
Johnson Controls 16,200 841,387
=============================================================================================
1.80 AUTOMOBILES
Ford Motor 95,900 4,465,344
=============================================================================================
7.91 BANKS
Bank of America 77,664 3,679,332
Chase Manhattan 65,000 3,229,687
FleetBoston Financial 123,700 4,430,006
PNC Financial Services Group 68,900 3,505,288
State Street 21,100 2,117,913
Wells Fargo & Co 63,800 2,635,738
=============================================================================================
19,597,964
1.08 BEVERAGES
Anheuser-Busch Cos 33,200 2,672,600
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
1.49 BUILDING MATERIALS
Lowe's Cos 62,800 $ 2,649,375
Sherwin-Williams Co 50,600 1,053,113
=============================================================================================
3,702,488
0.67 CABLE
Comcast Corp Class A Shrs(a) 49,100 1,670,167
=============================================================================================
2.19 CHEMICALS
Dow Chemical 66,100 1,900,375
du Pont (E I) de Nemours 43,900 1,989,219
Praxair Inc 38,600 1,527,113
=============================================================================================
5,416,707
3.67 COMMUNICATIONS--EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 136,800 5,737,050
Lucent Technologies 43,700 1,911,875
Tellabs Inc(a) 22,300 1,449,500
=============================================================================================
9,098,425
2.50 COMPUTER RELATED
Hewlett-Packard Co 25,100 2,740,606
International Business Machines 16,700 1,877,706
Sun Microsystems(a) 15,000 1,581,563
=============================================================================================
6,199,875
3.73 COMPUTER--SOFTWARE & SERVICES
Cadence Design Systems(a) 45,100 941,462
Computer Associates International 82,425 2,045,170
Compuware Corp(a) 86,000 688,000
Microsoft Corp(a) 58,300 4,070,069
Oracle Corp(a) 19,900 1,496,231
=============================================================================================
9,240,932
1.09 CONSUMER FINANCE
Household International 60,400 2,691,575
=============================================================================================
0.57 DISTRIBUTION
SUPERVALU Inc 80,400 1,422,075
=============================================================================================
1.94 ELECTRIC UTILITIES
DTE Energy 39,100 1,226,762
GPU Inc 37,000 980,500
Reliant Energy 32,800 1,098,800
Southern Co 61,100 1,493,131
=============================================================================================
4,799,193
4.07 ELECTRICAL EQUIPMENT
Emerson Electric 36,600 2,234,887
General Electric 152,400 7,839,075
=============================================================================================
10,073,962
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
5.50 ELECTRONICS--SEMICONDUCTOR
Integrated Device Technology(a) 17,800 $ 943,400
Intel Corp 127,600 8,517,300
Texas Instruments 71,000 4,166,813
=============================================================================================
13,627,513
0.79 EQUIPMENT--SEMICONDUCTOR
Applied Materials(a) 8,900 675,287
Teradyne Inc(a) 20,200 1,280,175
=============================================================================================
1,955,462
6.13 FINANCIAL
Associates First Capital Class A Shrs 65,400 1,712,662
Citigroup Inc 113,900 8,037,069
Fannie Mae 64,700 3,226,912
Freddie Mac 56,100 2,212,444
=============================================================================================
15,189,087
1.27 FOODS
Heinz (HJ) Co 32,800 1,309,950
Sysco Corp 46,400 1,827,000
=============================================================================================
3,136,950
9.40 HEALTH CARE DRUGS--PHARMACEUTICALS
Abbott Laboratories 56,300 2,343,487
American Home Products 34,300 1,820,044
Bristol-Myers Squibb 69,700 3,458,862
Johnson & Johnson 53,900 5,016,069
Merck & Co 51,200 3,670,400
Pfizer Inc 103,275 4,453,734
Schering-Plough Corp 58,400 2,522,150
=============================================================================================
23,284,746
1.11 HEALTH CARE RELATED
Biomet Inc 39,200 1,754,200
UnitedHealth Group 12,100 989,931
=============================================================================================
2,744,131
0.46 HOUSEHOLD FURNITURE & APPLIANCES
Whirlpool Corp 26,400 1,140,150
=============================================================================================
0.70 HOUSEHOLD PRODUCTS
Procter & Gamble 30,700 1,746,063
=============================================================================================
4.96 INSURANCE
American General 53,200 3,547,775
American International Group 59,822 5,245,598
MGIC Investment 61,300 3,482,606
=============================================================================================
12,275,979
1.95 INSURANCE BROKERS
Marsh & McLennan 39,500 4,819,000
=============================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
2.22 INVESTMENT BANK/BROKER FIRM
Morgan Stanley Dean Witter & Co 60,200 $ 5,493,250
=============================================================================================
0.49 IRON & STEEL
Nucor Corp 32,100 1,211,775
=============================================================================================
3.86 MANUFACTURING
Illinois Tool Works 54,515 3,120,984
Minnesota Mining & Manufacturing 26,600 2,395,663
Textron Inc 37,400 2,134,138
Tyco International Ltd 35,800 1,915,300
=============================================================================================
9,566,085
0.33 OFFICE EQUIPMENT & SUPPLIES
Office Depot(a) 132,600 828,750
=============================================================================================
8.88 OIL & GAS RELATED
BP Amoco PLC Sponsored ADR Representing 6 Ord Shrs 52,220 2,731,759
Chevron Corp 45,200 3,570,800
Diamond Offshore Drilling 27,500 1,032,969
ENSCO International 31,100 1,049,625
Exxon Mobil 88,390 7,071,200
Royal Dutch Petroleum New York Registry 1.25 Gldr Shrs 69,166 4,028,920
Texaco Inc 29,100 1,438,631
Transocean Sedco Forex 21,700 1,074,150
=============================================================================================
21,998,054
1.57 PAPER & FOREST PRODUCTS
International Paper 74,300 2,526,200
Kimberly-Clark Corp 23,800 1,367,012
=============================================================================================
3,893,212
0.45 PHOTOGRAPHY & IMAGING
Eastman Kodak 20,500 1,124,937
=============================================================================================
0.39 PUBLISHING
Gannett Co 17,800 958,975
=============================================================================================
0.65 RAILROADS
Union Pacific 37,000 1,597,938
=============================================================================================
0.71 RESTAURANTS
McDonald's Corp 55,900 1,760,850
=============================================================================================
1.63 RETAIL
Albertson's Inc 69,100 2,085,956
Target Corp 67,200 1,948,800
=============================================================================================
4,034,756
1.23 SERVICES
First Data 66,300 3,053,944
=============================================================================================
2.41 TELECOMMUNICATIONS--LONG DISTANCE
AT&T Corp 100,053 3,095,390
Qwest Communications International(a) 18,503 868,485
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
---------------------------------------------------------------------------------------------
Sprint Corp 56,000 $ 1,995,000
=============================================================================================
5,958,875
5.12 TELEPHONE
ALLTEL Corp 17,200 1,059,950
SBC Communications 84,702 3,605,129
Verizon Communications 45,600 2,143,200
WorldCom Inc(a) 150,150 5,865,234
=============================================================================================
12,673,513
0.43 TEXTILE--APPAREL MANUFACTURING
Liz Claiborne 27,100 1,056,900
=============================================================================================
0.74 TOBACCO
Philip Morris 72,600 1,833,150
=============================================================================================
0.07 TRUCKS & PARTS
Visteon Corp 12,844 179,816
=============================================================================================
TOTAL COMMON STOCKS (Cost $195,956,358) 245,056,605
=============================================================================================
1.07 SHORT-TERM INVESTMENTS--REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated 7/31/2000
due 8/1/2000 at 6.410%, repurchased at $2,643,471
(Collateralized by US Treasury Bills, Discount Notes
due 10/5/2000, value $2,699,770) (Cost $2,643,000) $ 2,643,000 2,643,000
=============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $198,599,358)
(Cost for Income Tax Purposes $200,251,812) $ 247,699,605
=============================================================================================
</TABLE>
(a) Security is non-income producing.
(b) Security has been designated as collateral for futures contracts.
FUTURE CONTRACTS
Open at July 31, 2000
--------------------------------------------------------------------------------
NUMBER OF FACE MARKET
POSITION CONTRACTS AMOUNT VALUE
--------------------------------------------------------------------------------
S&P 500 INDEX FUND
S&P 500 Index
(Expires September 2000) Long 5 $ 1,250 $ 1,798,625
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
BLUE CHIP
GROWTH DYNAMICS
FUND FUND
------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $1,616,069,189 $5,688,224,060
================================================================================================
At Value(a) $2,058,280,285 $7,936,444,514
Cash 917,097 543,124
Receivables:
Investment Securities Sold 81,813,871 119,998,341
Fund Shares Sold 12,319,179 66,528,392
Dividends and Interest 6,232 538,189
Prepaid Expenses and Other Assets 122,576 252,799
================================================================================================
TOTAL ASSETS 2,153,459,240 8,124,305,359
================================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 128,789,570 163,368,930
Fund Shares Repurchased 12,238,872 65,914,898
Accrued Distribution Expenses
Investor Class 420,816 1,639,628
Class C 2,740 3,710
Accrued Expenses and Other Payables 114,784 121,266
================================================================================================
TOTAL LIABILITIES 141,566,782 231,048,432
================================================================================================
NET ASSETS AT VALUE $2,011,892,458 $7,893,256,927
================================================================================================
NET ASSETS
Paid-in Capital(b) $1,307,104,257 $5,817,083,645
Accumulated Undistributed Net Investment Loss (74,966) (116,436)
Accumulated Undistributed Net Realized Gain (Loss) on
Investment Securities and Foreign Currency Transactions 262,652,071 (171,930,736)
Net Appreciation of Investment Securities and
Foreign Currency Transactions 442,211,096 2,248,220,454
================================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $2,011,892,458 $7,893,256,927
================================================================================================
NET ASSETS AT VALUE:
Institutional Class $ -- $ 22,989,452
================================================================================================
Investor Class $2,008,679,569 $7,865,488,619
================================================================================================
Class C $ 3,212,889 $ 4,778,856
================================================================================================
Shares Outstanding
Institutional Class -- 824,897
Investor Class 237,210,173 282,306,959
Class C 380,821 172,029
NET ASSET VALUE, Offering and Redemption Price per Share
Institutional Class $ -- $ 27.87
Investor Class $ 8.47 $ 27.86
Class C $ 8.44 $ 27.78
================================================================================================
</TABLE>
<PAGE>
(a)Investment securities at cost and value at July 31, 2000 include repurchase
agreements of $35,000,000 and $55,327,000 for Blue Chip Growth and Dynamics
Funds, respectively.
(b)The Fund has four billion authorized shares of common stock, par value $0.01
per share. Of such shares, 1.1 billion have been allocated Blue Chip Growth
Fund and 1.1 billion to Dynamics Fund: 700 million to Blue Chip Growth Fund -
Investor Class, 400 million to Blue Chip Growth Fund - Class C, 100 million
to Dynamics Fund - Institutional Class, 700 million to Dynamics Fund -
Investor Class, and 300 million to Dynamics Fund - Class C.
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
INVESCO
GROWTH & ENDEAVOR
INCOME FUND FUND
------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 172,988,390 $ 293,155,236
================================================================================================
At Value(a) $ 202,636,122 $ 393,381,848
Cash 973 268,250
Receivables:
Investment Securities Sold 12,811,533 11,809,181
Fund Shares Sold 435,700 4,236,722
Dividends and Interest 3,405 712
Prepaid Expenses and Other Assets 38,882 9,580
================================================================================================
TOTAL ASSETS 215,926,615 409,706,293
================================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 13,349,193 14,790,766
Fund Shares Repurchased 560,964 1,679,785
Accrued Distribution Expenses
Investor Class 38,417 82,054
Class C 1,091 2,041
Accrued Expenses and Other Payables 5,814 4,737
================================================================================================
TOTAL LIABILITIES 13,955,479 16,559,383
================================================================================================
NET ASSETS AT VALUE $ 201,971,136 $ 393,146,910
================================================================================================
NET ASSETS
Paid-in Capital(b) $ 165,260,238 $ 304,592,201
Accumulated Undistributed Net Investment Loss (1,863) (2,224)
Accumulated Undistributed Net Realized Gain (Loss) on
Investment Securities and Foreign Currency Transactions 7,065,029 (11,669,679)
Net Appreciation of Investment Securities and
Foreign Currency Transactions 29,647,732 100,226,612
================================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 201,971,136 $ 393,146,910
================================================================================================
NET ASSETS AT VALUE:
Investor Class $ 200,583,616 $ 390,637,836
================================================================================================
Class C $ 1,387,520 $ 2,509,074
================================================================================================
Shares Outstanding
Investor Class 10,596,189 16,064,155
Class C 73,530 103,403
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 18.93 $ 24.32
Class C $ 18.87 $ 24.27
================================================================================================
</TABLE>
(a)Investment securities at cost and value at July 31, 2000 include repurchase
agreements of $4,118,000 and $4,000,000 for Growth & Income and INVESCO
Endeavor Funds, respectively.
(b)The Fund has four billion authorized shares of common stock, par value $0.01
per share. Of such shares, 200 million have been allocated Growth & Income
Fund and 200 million to INVESCO Endeavor Fund: 100 million to each Investor
Class and 100 million to each Class C.
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
SMALL
S&P 500 COMPANY
INDEX FUND GROWTH FUND
------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 82,261,137 $1,292,126,784
================================================================================================
At Value(a) $ 94,701,135 $1,474,320,802
Cash 490,244 1,945,853
Receivables:
Investment Securities Sold 36,576 9,127,540
Fund Shares Sold 261,840 29,328,527
Dividends and Interest 62,510 52,986
Variation Margin on Futures Contracts 8,276 --
Prepaid Expenses and Other Assets 29,970 68,790
================================================================================================
TOTAL ASSETS 95,590,551 1,514,844,498
================================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 2,418 0
Investment Securities Purchased 15,333 34,759,089
Fund Shares Repurchased 126,481 25,934,015
Borrowings on Line of Credit 0 11,400,000
Accrued Distribution Expenses
Investor Class 18,945 307,279
Class C -- 1,765
Accrued Expenses and Other Payables 15,913 70,556
================================================================================================
TOTAL LIABILITIES 179,090 72,472,704
================================================================================================
NET ASSETS AT VALUE $ 95,411,461 $1,442,371,794
================================================================================================
NET ASSETS
Paid-in Capital(b) $ 83,115,930 $1,193,030,228
Accumulated Undistributed Net Investment Income (Loss) 3,821 (29,833)
Accumulated Undistributed Net Realized Gain (Loss) on
Investment Securities, Foreign Currency Transactions
and Futures Contracts (87,418) 67,177,381
Net Appreciation of Investment Securities and Futures Contracts 12,379,128 182,194,018
================================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 95,411,461 $1,442,371,794
================================================================================================
NET ASSETS AT VALUE:
Institutional Class $ 2,627,198 $ --
================================================================================================
Investor Class $ 92,784,263 $1,440,445,295
================================================================================================
Class C $ -- $ 1,926,499
================================================================================================
Shares Outstanding
Institutional Class 174,337 --
Investor Class 6,042,259 77,861,692
Class C -- 104,869
NET ASSET VALUE, Offering and Redemption Price per Share
Institutional Class $ 15.07 $ --
Investor Class $ 15.36 $ 18.50
Class C $ -- $ 18.37
================================================================================================
</TABLE>
<PAGE>
(a)Investment securities at cost and value at July 31, 2000 includes a
repurchase agreement of $1,305,000 for S&P 500 Index Fund.
(b)The Fund has four billion authorized shares of common stock, par value $0.01
per share. Of such shares, 200 million have been allocated to S&P 500 Index
Fund and 200 million to Small Company Growth Fund: 100 million to
Institutional Class and 100 million to Investor Class for S&P 500 Index Fund
and 200 million to Investor Class and 200 million to Class C for Small
Company Growth Fund.
See Notes to Financial Statements
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2000
VALUE
EQUITY
FUND
--------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 198,599,358
================================================================================
At Value(a) $ 247,699,605
Cash 168,667
Receivables:
Fund Shares Sold 2,189,405
Dividends and Interest 219,374
Prepaid Expenses and Other Assets 24,237
================================================================================
TOTAL ASSETS 250,301,288
================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 1,264
Investment Securities Purchased 893,793
Fund Shares Repurchased 272,607
Accrued Distribution Expenses
Investor Class 51,382
Class C 110
Accrued Expenses and Other Payables 42,260
================================================================================
TOTAL LIABILITIES 1,261,416
================================================================================
NET ASSETS AT VALUE $ 249,039,872
================================================================================
NET ASSETS
Paid-in Capital(b) $ 160,327,459
Accumulated Undistributed (Distributions in Excess of)
Net Investment Income (9,849)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency Transactions 39,622,015
Net Appreciation of Investment Securities and
Foreign Currency Transactions 49,100,247
================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 249,039,872
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 248,943,651
================================================================================
Class C $ 96,221
================================================================================
Shares Outstanding
Investor Class 9,899,326
Class C 3,865
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 25.15
Class C $ 24.90
================================================================================
(a)Investment securities at cost and value at July 31, 2000 includes a
repurchase agreement of $2,643,000 for Value Equity Fund.
(b)The Fund has four billion authorized shares of common stock, par value $0.01
per share. Of such shares, 200 million have been allocated to Value Equity
Fund: 100 million to Investor Class and 100 million to Class C.
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2000
BLUE CHIP
GROWTH DYNAMICS
FUND FUND
------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 5,172,269 $ 7,642,216
Dividends from Affiliated Investment Companies 91,703 6,618,198
Interest 800,235 14,209,917
Foreign Taxes Withheld (39,733) (111,109)
================================================================================================
TOTAL INCOME 6,024,474 28,359,222
================================================================================================
EXPENSES
Investment Advisory Fees 8,579,613 24,145,356
Distribution Expenses
Investor Class 4,028,235 13,080,218
Class C 6,788 9,345
Transfer Agent Fees 2,206,336 5,669,384
Administrative Services Fees 735,388 2,366,838
Custodian Fees and Expenses 159,873 481,738
Directors' Fees and Expenses 66,893 148,214
Interest Expenses 60,868 11,306
Professional Fees and Expenses 54,182 105,122
Registration Fees and Expenses
Institutional Class -- 8,841
Investor Class 173,185 279,976
Reports to Shareholders 320,957 427,694
Other Expenses 38,964 98,230
================================================================================================
TOTAL EXPENSES 16,431,282 46,832,262
Fees and Expenses Paid Indirectly (159,766) (482,540)
================================================================================================
NET EXPENSES 16,271,516 46,349,722
================================================================================================
NET INVESTMENT LOSS (10,247,042) (17,990,500)
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 303,937,104 (165,104,153)
Foreign Currency Transactions 0 (553,135)
================================================================================================
Total Net Realized Gain (Loss) 303,937,104 (165,657,288)
================================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 180,963,907 1,681,019,019
Foreign Currency Transactions 0 (624,691)
================================================================================================
Total Net Appreciation 180,963,907 1,680,394,328
================================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 484,901,011 1,514,737,040
================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 474,653,969 $1,496,746,540
================================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2000
INVESCO
GROWTH & ENDEAVOR
INCOME FUND FUND
------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 640,609 $ 336,663
Dividends from Affiliated Investment Companies 0 303,152
Interest 207,650 732,589
Foreign Taxes Withheld (3,914) (9,832)
================================================================================================
TOTAL INCOME 844,345 1,362,572
================================================================================================
EXPENSES
Investment Advisory Fees 1,061,699 2,163,441
Distribution Expenses
Investor Class 353,179 719,853
Class C 2,884 5,174
Transfer Agent Fees 366,161 761,743
Administrative Services Fees 73,702 139,807
Custodian Fees and Expenses 25,056 31,132
Directors' Fees and Expenses 12,708 15,676
Interest Expenses 3,572 0
Professional Fees and Expenses 20,495 22,418
Registration Fees and Expenses - Investor Class 74,428 91,191
Reports to Shareholders 67,335 120,923
Other Expenses 5,931 5,634
================================================================================================
TOTAL EXPENSES 2,067,150 4,076,992
Fees and Expenses Absorbed by Investment Adviser (472) 0
Fees and Expenses Paid Indirectly (21,548) (28,169)
================================================================================================
NET EXPENSES 2,045,130 4,048,823
================================================================================================
NET INVESTMENT LOSS (1,200,785) (2,686,251)
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 10,027,511 (7,486,137)
Foreign Currency Transactions (6,897) (105,225)
================================================================================================
Total Net Realized Gain (Loss) 10,020,614 (7,591,362)
================================================================================================
Change in Net Appreciation of:
Investment Securities 22,640,688 90,078,370
Foreign Currency Transactions 0 82,811
================================================================================================
Total Net Appreciation 22,640,688 90,161,181
================================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 32,661,302 82,569,819
================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 31,460,517 $ 79,883,568
================================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2000
SMALL
S&P 500 COMPANY
INDEX FUND GROWTH FUND
------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 990,869 $ 426,301
Dividends from Affiliated Investment Companies 0 1,743,494
Interest 191,436 5,747,740
Foreign Taxes Withheld (4,926) (5,061)
================================================================================================
TOTAL INCOME 1,177,379 7,912,474
================================================================================================
EXPENSES
Investment Advisory Fees 218,777 6,060,303
Distribution Expenses
Investor Class 206,582 2,304,143
Class C -- 4,894
Transfer Agent Fees 180,091 1,830,905
Administrative Services Fees 49,380 425,479
Custodian Fees and Expenses 28,765 119,157
Directors' Fees and Expenses 11,600 33,868
Interest Expenses 927 9,539
Professional Fees and Expenses 22,997 36,681
Registration Fees and Expenses
Institutional Class 24,430 --
Investor Class 55,457 143,213
Reports to Shareholders 36,930 226,049
Other Expenses 2,903 17,737
================================================================================================
TOTAL EXPENSES 838,839 11,211,968
Fees and Expenses Absorbed by Investment Adviser (301,173) (1,326)
Fees and Expenses Paid Indirectly (24,167) (108,164)
================================================================================================
NET EXPENSES 513,499 11,102,478
================================================================================================
NET INVESTMENT INCOME (LOSS) 663,880 (3,190,004)
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities and Foreign Currency Transactions (294,705) 107,611,353
Futures Contracts 189,222 0
================================================================================================
Total Net Realized Gain (Loss) (105,483) 107,611,353
================================================================================================
Change in Net Appreciation of:
Investment Securities 5,432,078 124,587,735
Futures Contracts 27,474 0
================================================================================================
Total Net Appreciation 5,459,552 124,587,735
================================================================================================
NET GAIN ON INVESTMENT SECURITIES, FOREIGN
CURRENCY TRANSACTIONS AND FUTURES CONTRACTS 5,354,069 232,199,088
================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,017,949 $ 229,009,084
================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2000
VALUE
EQUITY
FUND
--------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 4,837,701
Interest 420,493
Foreign Taxes Withheld (27,939)
================================================================================
TOTAL INCOME 5,230,255
================================================================================
EXPENSES
Investment Advisory Fees 2,307,903
Distribution Expenses
Investor Class 769,246
Class C 219
Transfer Agent Fees 970,954
Administrative Services Fees 148,474
Custodian Fees and Expenses 47,388
Directors' Fees and Expenses 24,287
Interest Expenses 7,465
Professional Fees and Expenses 24,934
Registration Fees and Expenses - Investor Class 50,147
Reports to Shareholders 72,885
Other Expenses 14,920
================================================================================
TOTAL EXPENSES 4,438,822
Fees and Expenses Absorbed by Investment Adviser (401,763)
Fees and Expenses Paid Indirectly (40,250)
================================================================================
NET EXPENSES 3,996,809
================================================================================
NET INVESTMENT INCOME 1,233,446
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 65,029,722
Change in Net Depreciation of Investment Securities (89,194,982)
================================================================================
NET LOSS ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS (24,165,260)
================================================================================
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (22,931,814)
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
BLUE CHIP GROWTH FUND
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 AUGUST 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $(10,247,042) $ (865,975) $ 2,968,238
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 303,937,104 112,169,586 104,101,420
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions 180,963,907 233,360,777 (9,504,119)
================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 474,653,969 344,664,388 97,565,539
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income - Investor Class 0 0 (2,912,112)
In Excess of Net Investment Income - Investor Class (4,019) (69,191) 0
Net Realized Gain on Investment Securities
and Foreign Currency Transactions -
Investor Class (139,727,224) (84,849,471) (187,061,864)
================================================================================================================
TOTAL DISTRIBUTIONS (139,731,243) (84,918,662) (189,973,976)
================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 1,469,859,387 1,033,836,692 547,827,536
Class C 3,481,690 -- --
Reinvestment of Distributions - Investor Class 125,357,653 75,265,536 168,012,124
================================================================================================================
1,598,698,730 1,109,102,228 715,839,660
Amounts Paid for Repurchases of Shares
Investor Class (1,154,213,741) (883,678,836) (584,913,034)
Class C (423,019) -- --
================================================================================================================
(1,154,636,760) (883,678,836) (584,913,034)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 444,061,970 225,423,392 130,926,626
================================================================================================================
TOTAL INCREASE IN NET ASSETS 778,984,696 485,169,118 38,518,189
NET ASSETS
Beginning of Period 1,232,907,762 747,738,644 709,220,455
================================================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in Excess of)
Net Investment Income (Loss) of ($74,966),
($49,145) and $34,771, respectively) $2,011,892,458 $1,232,907,762 $ 747,738,644
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
BLUE CHIP GROWTH FUND (CONTINUED)
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 AUGUST 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 182,914,159 160,399,762 94,746,511
Class C 428,640 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 16,912,133 12,459,923 34,540,804
================================================================================================================
200,254,932 172,859,685 129,287,315
Shares Repurchased
Investor Class (145,176,260) (135,422,302) (101,276,736)
Class C (47,818) -- --
================================================================================================================
(145,224,078) (135,422,302) (101,276,736)
NET INCREASE IN FUND SHARES 55,030,854 37,437,383 28,010,579
================================================================================================================
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
DYNAMICS FUND
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999
OPERATIONS
Net Investment Loss $ (17,990,500) $ (1,807,295) $ (5,886,433)
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (165,657,288) 110,302,210 57,512,828
Change in Net Appreciation
of Investment Securities and
Foreign Currency Transactions 1,680,394,328 31,442,538 283,095,480
================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 1,496,746,540 139,937,453 334,721,875
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class 0 0 (115,015,920)
In Excess of Net Realized Gain on Investment
Securities and Foreign Currency
Transactions - Investor Class (165,105,675) 0 0
================================================================================================================
(165,105,675) 0 (115,015,920)
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 20,566,308 -- --
Investor Class 8,358,482,584 869,941,998 2,129,570,413
Class C 5,856,621 -- --
Reinvestment of Distributions - Investor Class 162,373,943 0 113,049,160
================================================================================================================
8,547,279,456 869,941,998 2,242,619,573
Amounts Paid for Repurchases of Shares
Institutional Class (546,207) -- --
Investor Class (4,455,499,358) (582,718,812) (1,758,303,356)
Class C (1,099,484) -- --
================================================================================================================
(4,457,145,049) (582,718,812) (1,758,303,356)
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 4,090,134,407 287,223,186 484,316,217
================================================================================================================
TOTAL INCREASE IN NET ASSETS 5,421,775,272 427,160,639 704,022,172
NET ASSETS
Beginning of Period 2,471,481,655 2,044,321,016 1,340,298,844
================================================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss
of ($116,436), ($65,063) and
($61,368), respectively) $7,893,256,927 $ 2,471,481,655 $ 2,044,321,016
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
DYNAMICS FUND (CONTINUED)
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999
FUND SHARE TRANSACTIONS
Shares Sold
Institutional Class 847,384 -- --
Investor Class 322,660,362 45,635,822 135,833,566
Class C 208,609 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 7,219,834 0 8,011,923
================================================================================================================
330,936,189 45,635,822 143,845,489
Shares Repurchased
Institutional Class (22,487) -- --
Investor Class (175,043,052) (30,807,994) (112,899,930)
Class C (36,580) -- --
================================================================================================================
(175,102,119) (30,807,994) (112,899,930)
NET INCREASE IN FUND SHARES 155,834,070 14,827,828 30,945,559
================================================================================================================
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GROWTH & INCOME FUND
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999(b)
OPERATIONS
Net Investment Loss $(1,200,785) $ (63,702) $ (70,576)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 10,020,614 2,936,850 5,112,480
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 22,640,688 107,107 6,899,937
================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 31,460,517 2,980,255 11,941,841
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class (7,841,154) 0 (1,833,046)
================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 354,812,328 19,917,033 103,261,159
Class C 1,357,617 -- --
Reinvestment of Distributions - Investor Class 7,665,943 0 1,763,814
================================================================================================================
363,835,888 19,917,033 105,024,973
Amounts Paid for Repurchases of Shares
Investor Class (246,758,360) (15,575,219) (61,389,946)
Class C (41,646) -- --
================================================================================================================
(246,800,006) (15,575,219) (61,389,946)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 117,035,882 4,341,814 43,635,027
================================================================================================================
TOTAL INCREASE IN NET ASSETS 140,655,245 7,322,069 53,743,822
NET ASSETS
Initial Subscription - Investor Class -- -- 250,000
Beginning of Period 61,315,891 53,993,822 --
================================================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($1,863), ($277) and
($186), respectively) $ 201,971,136 $ 61,315,891 $ 53,993,822
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GROWTH & INCOME FUND (CONTINUED)
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999(b)
FUND SHARE TRANSACTIONS
Shares Sold
Initial Subscription - Investor Class -- -- 25,000
Investor Class 20,171,884 1,304,788 8,250,996
Class C 75,725 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 456,306 0 137,476
================================================================================================================
20,703,915 1,304,788 8,413,472
Shares Repurchased
Investor Class (14,022,390) (1,027,866) (4,700,005)
Class C (2,195) -- --
================================================================================================================
(14,024,585) (1,027,866) (4,700,005)
NET INCREASE IN FUND SHARES 6,679,330 276,922 3,713,467
================================================================================================================
(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.
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INVESCO ENDEAVOR FUND
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999(b)
OPERATIONS
Net Investment Loss $ (2,686,251) $ (191,562) $ (154,763)
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (7,591,362) 5,545,050 4,674,887
Change in Net Appreciation (Depreciation)
of Investment Securities and
Foreign Currency Transactions 90,161,181 (5,309,394) 15,374,825
================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 79,883,568 44,094 19,894,949
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class (2,282,250) 0 0
In Excess of Net Realized Gain on Investment
Securities and Foreign Currency Transactions -
Investor Class (11,001,899) 0 0
================================================================================================================
TOTAL DISTRIBUTIONS (13,284,149) 0 0
================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 622,930,591 82,344,436 154,292,260
Class C 3,408,788 -- --
Reinvestment of Distributions
Investor Class 12,934,514 0 0
Class C 0 -- --
================================================================================================================
639,273,893 82,344,436 154,292,260
Amounts Paid for Repurchases of Shares
Investor Class (421,375,220) (45,448,995) (101,594,814)
Class C (883,112) -- --
================================================================================================================
(422,258,332) (45,448,995) (101,594,814)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 217,015,561 36,895,441 52,697,446
================================================================================================================
TOTAL INCREASE IN NET ASSETS 283,614,980 36,939,535 72,592,395
NET ASSETS
Beginning of Period 109,531,930 72,592,395 0
================================================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($2,224), $0 and ($154,763),
respectively) $ 393,146,910 $ 109,531,930 $ 72,592,395
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INVESCO ENDEAVOR FUND (CONTINUED)
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999(b)
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 27,203,082 4,829,435 11,384,455
Class C 139,950 -- --
Shares Issued from Reinvestment of Distributions
Investor Class 627,280 0 0
Class C 0 -- --
================================================================================================================
27,970,312 4,829,435 11,384,455
Shares Repurchased
Investor Class (18,359,179) (2,684,902) (6,936,016)
Class C (36,547) -- --
================================================================================================================
(18,395,726) (2,684,902) (6,936,016)
NET INCREASE IN FUND SHARES 9,574,586 2,144,533 4,448,439
================================================================================================================
</TABLE>
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) From October 28, 1998, commencement of investment operations, to April 30,
1999.
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 INDEX FUND
YEAR ENDED JULY 31
------------------------------------------------------------------------------------------------
2000 1999
<S> <C> <C>
OPERATIONS
Net Investment Income $ 663,880 $ 471,534
Net Realized Gain (Loss) on Investment Securities,
Foreign Currency Transactions and
Futures Contracts (105,483) 678,056
Change in Net Appreciation of Investment
Securities and Futures Contracts 5,459,552 6,211,781
================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 6,017,949 7,361,371
================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Institutional Class (63,227) (52,661)
Investor Class (599,411) (418,861)
Net Realized Gain on Investment Securities, Foreign
Currency Transactions and Futures Contracts
Institutional Class (31,852) (11,013)
Investor Class (558,145) (104,474)
In Excess of Net Realized Gain on Investment Securities,
Foreign Currency Transactions and Futures Contracts
Institutional Class (4,709) 0
Investor Class (82,508) 0
================================================================================================
TOTAL DISTRIBUTIONS (1,339,852) (587,009)
================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 3,565,762 1,376,114
Investor Class 71,481,514 65,043,426
Reinvestment of Distributions
Institutional Class 99,782 63,674
Investor Class 1,219,372 514,657
================================================================================================
76,366,430 66,997,871
Amounts Paid for Repurchases of Shares
Institutional Class (5,801,785) (764,087)
Investor Class (48,864,537) (22,298,285)
================================================================================================
(54,666,322) (23,062,372)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 21,700,108 43,935,499
================================================================================================
TOTAL INCREASE IN NET ASSETS 26,378,205 50,709,861
NET ASSETS
Beginning of Period 69,033,256 18,323,395
================================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Income
of $3,821 and $2,317, respectively) $ 95,411,461 $ 69,033,256
================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 INDEX FUND (CONTINUED)
YEAR ENDED JULY 31
------------------------------------------------------------------------------------------------
2000 1999
FUND SHARE TRANSACTIONS
Shares Sold
Institutional Class 239,266 100,399
Investor Class 4,700,345 4,876,896
Shares Issued from Reinvestment of Distributions
Institutional Class 6,660 4,741
Investor Class 80,608 37,760
================================================================================================
5,026,879 5,019,796
Shares Repurchased
Institutional Class (382,698) (65,360)
Investor Class (3,228,000) (1,666,513)
================================================================================================
(3,610,698) (1,731,873)
NET INCREASE IN FUND SHARES 1,416,181 3,287,923
================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SMALL COMPANY GROWTH
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 MAY 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $(3,190,004) $ (493,356) $ (1,520,695)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 107,611,353 25,477,829 22,301,174
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 124,587,735 23,498,647 17,417,507
================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 229,009,084 48,483,120 38,197,986
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class (76,689,962) 0 (26,845,319)
================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 2,358,963,640 206,787,274 606,918,472
Class C 2,873,282 -- --
Reinvestment of Distributions - Investor Class 74,488,780 0 26,316,463
Net Assets Received from Acquisition
of Small Company Value Fund (Note 3) -- 37,196,562 --
================================================================================================================
2,436,325,702 243,983,836 633,234,935
Amounts Paid for Repurchases of Shares
Investor Class (1,598,341,071) (157,715,200) (599,096,847)
Class C (793,161) -- --
================================================================================================================
(1,599,134,232) (157,715,200) (599,096,847)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 837,191,470 86,268,636 34,138,088
================================================================================================================
TOTAL INCREASE IN NET ASSETS 989,510,592 134,751,756 45,490,755
NET ASSETS
Beginning of Period 452,861,202 318,109,446 272,618,691
================================================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($29,833), ($22,140) and
($21,512), respectively) $1,442,371,794 $ 452,861,202 $ 318,109,446
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SMALL COMPANY GROWTH FUND (CONTINUED)
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 MAY 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 128,721,618 15,863,285 54,131,470
Class C 146,167 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 4,853,343 0 2,518,300
Shares Issued in Connection with Acquisition
of Small Company Value Fund (Note 3) -- 3,019,096 --
================================================================================================================
133,721,128 18,882,381 56,649,770
Shares Repurchased
Investor Class (88,975,461) (11,949,112) (53,229,883)
Class C (41,298) -- --
================================================================================================================
(89,016,759) (11,949,112) (53,229,883)
NET INCREASE IN FUND SHARES 44,704,369 6,933,269 3,419,887
================================================================================================================
(a) From June 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
VALUE EQUITY FUND
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 AUGUST 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998
OPERATIONS
Net Investment Income $ 1,233,446 $ 2,305,759 $ 3,528,628
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 65,029,722 3,750,608 39,716,148
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions (89,194,982) 81,638,227 (45,560,535)
================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS (22,931,814) 87,694,59 4 (2,315,759)
================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Investor Class (1,226,513) (2,294,923) (3,546,111)
Class C (441) -- --
In Excess of Net Investment Income
Investor Class (11,609) (5,812) (11,054)
Class C (4) -- --
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class (29,107,020) (31,654,557) (26,588,368)
================================================================================================================
TOTAL DISTRIBUTIONS (30,345,587) (33,955,292) (30,145,533)
================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 336,188,880 275,439,791 451,339,743
Class C 194,144 -- --
Reinvestment of Distributions
Investor Class 29,536,646 33,721,744 28,948,214
Class C 444 -- --
================================================================================================================
365,920,114 309,161,535 480,287,957
Amounts Paid for Repurchases of Shares
Investor Class (433,489,187) (342,903,195) (467,608,421)
Class C (95,160) -- --
================================================================================================================
(433,584,347) (342,903,195) (467,608,421)
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (67,664,233) (33,741,660) 12,679,536
================================================================================================================
TOTAL INCREASE (DECREASE) IN
NET ASSETS (120,941,634) 19,997,642 (19,781,756)
NET ASSETS
Beginning of Period 369,981,506 349,983,864 369,765,620
================================================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in Excess of)
Net Investment Loss of ($9,849),
($6,492) and ($10,836), respectively) $ 249,039,872 $ 369,981,506 $ 349,983,864
================================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
VALUE EQUITY FUND (CONTINUED)
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31 JULY 31 AUGUST 31
----------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 12,772,557 9,361,699 15,256,421
Class C 7,550 -- --
Shares Issued from Reinvestment of Distributions
Investor Class 1,129,257 1,186,215 1,058,632
Class C 18 -- --
================================================================================================================
13,909,382 10,547,914 16,315,053
Shares Repurchased
Investor Class (16,499,517) (11,678,504) (15,751,418)
Class C (3,703) -- --
================================================================================================================
(16,503,220) (11,678,504) (15,751,418)
NET INCREASE (DECREASE) IN
FUND SHARES (2,593,838) (1,130,590) 563,635
================================================================================================================
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
See Notes to Financial Statements
<PAGE>
INVESCO Notes to financial statements - INVESCO Stock Funds, Inc.
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Stock Funds,
Inc. is incorporated in Maryland and presently consists of seven separate Funds:
Blue Chip Growth Fund, Dynamics Fund, Growth & Income Fund, INVESCO Endeavor
Fund, S&P 500 Index Fund, Small Company Growth Fund and Value Equity Fund
(individually the "Fund" and collectively, the "Funds"). 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, Growth & Income and INVESCO Endeavor 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. INVESCO Stock Funds, Inc. is registered under the Investment Company Act
of 1940 (the "Act") as a diversified, open-end management investment company.
Effective at the close of business on August 31, 2000, Small Company Growth Fund
closed to new investors.
On May 20, 1999, shareholders of Small Company Growth Fund approved Agreements
and Plans of Reorganization and Termination, in which Small Company Value Fund
("Target Fund") merged into Small Company Growth Fund ("Surviving Fund").
Shareholders of the Target Fund became shareholders of the Surviving Fund and
received shares of the Surviving Fund equal in dollar value to the then current
value of their shares in the Target Fund, effective at the close of business on
June 4, 1999.
The S&P 500 Index Fund offers two classes of shares, referred to as
Institutional Class shares and Investor Class shares (formerly Class I and Class
II, respectively). Institutional Class shares are not subject to any
distribution fees, while Investor Class shares are subject to an annual
distribution fee to a maximum of 0.25% of the Fund's annual average net assets
attributable to Investor Class shares. Effective February 15, 2000, Blue Chip
Growth, Dynamics, Growth & Income, INVESCO Endeavor, Small Company Growth and
Value Equity Funds began offering an additional class of shares, referred to as
Class C shares. Investor Class and Class C shares are subject to an annual
distribution fee to a maximum of 0.25% and 1.00%, respectively, of the Fund's
annual average net assets attributable to each Class' shares. Effective May 23,
2000, Dynamics Fund began offering an additional class of shares, referred to as
Institutional Class shares, which is not subject to any distribution fees.
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 Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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
at the close of the regular trading day on the exchange (generally 4:00 p.m.
Eastern time) where such securities are primarily traded. If last sales prices
are not available, securities are valued at the highest closing bid prices at
the close of the regular trading day as 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>
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.
Investments in shares of investment companies are valued at the net asset value
of the respective mutual fund as calculated each day.
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.
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, 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. 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.
Each Fund may invest in securities issued by other INVESCO Investment Companies
that invest in short-term debt securities and seek to maintain a net asset value
of one dollar per share.
<PAGE>
The Fund may have elements of risk due to investments in foreign issuers located
in a specific country. Such investments may subject the Fund to additional risks
resulting from future political or economic conditions and/or possible
impositions of adverse foreign governmental laws or currency exchange
restrictions. Net realized and unrealized gain or loss from investment
securities includes fluctuations from currency exchange rates and fluctuations
in market value.
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts
fortrading 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.
At July 31, Dynamics Fund and Small Company Growth Fund had $14,551,284 and
$4,086,304 in net capital loss carryovers which expire in the years 2008 and
2007, respectively. Net capital loss carryovers utilized in 2000 by Small
Company Growth Fund amounted to $1,805,669.
Dynamics and INVESCO Endeavor Funds incurred and elected to defer post-October
31 net capital losses of $120,944,837 and $9,067,277, respectively, and Dynamics
and Value Equity Funds incurred and elected to defer post-October 31 net foreign
currency losses of $2,107 and $28, respectively, to the year ended July 31,
2001. To the extent future capital gains are offset by capital loss carryovers
and deferred post-October 31 losses, such gains will not be distributed to
shareholders.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders. Of the ordinary income distributions
declared for the year ended July 31, 2000, 69.51% and 100.00% for S&P 500 Index
Fund and Value Equity Fund, respectively, qualified for the dividends received
deduction available to the Fund's corporate 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 accounting principles generally accepted in
the United States. 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.
<PAGE>
For the year ended July 31, 2000, the effects of such differences were as
follows:
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED NET REALIZED
NET GAIN/LOSS ON
INVESTMENT INVESTMENT PAID-IN
FUND INCOME SECURITIES CAPITAL
--------------------------------------------------------------------------------
Blue Chip Growth Fund $10,225,240 $(10,228,889) 3,649
Dynamics Fund 17,939,127 (2,252) (17,936,875)
Growth & Income Fund 1,199,199 (1,196,714) (2,485)
INVESCO Endeavor Fund 2,684,027 (667,780) (2,016,247)
S&P 500 Index Fund 262 (201) (61)
Small Company Growth Fund 3,182,311 (9,303,751) 6,121,440
Value Equity Fund 1,764 2,837 (4,601)
Net investment income (loss), net realized gains and net assets were not
affected.
G. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into short-term forward
foreign currency contracts in connection with planned purchases or sales of
securities as a hedge against fluctuations in foreign exchange rates pending the
settlement of transactions in foreign securities. A forward foreign currency
contract is an agreement between contracting parties to exchange an amount of
currency at some future time at an agreed upon rate. These contracts are
marked-to-market daily and the related appreciation or depreciation of the
contracts is presented in the Statement of Assets and Liabilities. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
H. EXPENSES -- Each 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 are reduced by credits earned from security
brokerage transactions under certain broker/service arrangements with third
parties. Such credits are included in Fees and Expenses Paid Indirectly in the
Statement of Operations.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Funds' investment adviser. As compensation for its
services to the Funds, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee is based on the annual
rate of each Fund's average net assets as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS
------------------------------------------------------------------------------------------------
$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% 0.40% 0.375% 0.35%
Dynamics Fund 0.60% 0.55% 0.50% 0.45% 0.40% 0.375% 0.35%
Small Company
Growth Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
<PAGE>
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
------------------------------------------------------------------------------------------------
Growth & Income
Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
INVESCO Endeavor
Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Value Equity Fund 0.75% 0.65% 0.50% 0.45% 0.40% 0.375% 0.35%
</TABLE>
S&P 500 Index Fund's investment advisory fee is based on the annual rate of
0.25% of average net assets.
A Sub-Advisory Agreement between IFG and World Asset Management ("World"),
unaffiliated with any IFG entity, provides that 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, provides that
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 of Investor Class
shares. A master distribution plan and agreement pursuant to Rule 12b-1 of the
Act provides for financing the distribution and shareholder servicing of Class C
shares of 1.00% per annum of average daily net assets. Any unreimbursed expenses
IDI incurs with respect to Investor Class and Class C shares in any fiscal year
can not be recovered in subsequent years. For the year/period ended July 31,
2000, amounts paid to the distributor were as follows:
INVESTOR CLASS
FUND CLASS C
--------------------------------------------------------------------------------
Blue Chip Growth Fund $ 3,884,705 $ 4,048
Dynamics Fund 11,964,996 5,635
Growth & Income Fund 327,702 1,793
INVESCO Endeavor Fund 661,647 3,133
S&P 500 Index Fund 201,498 --
Small Company Growth Fund 2,097,852 3,128
Value Equity Fund 800,902 108
IFG receives a transfer agent fee from each Class at an annual rate of $22.50
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 actualnumber of accounts in existence during
each month. Prior to June 1, 2000, each Class paid an annual rate of $20.00 per
shareholder account, or, where applicable, per participant in an omnibus
account, per year.
In accordance with an Administrative Services Agreement, each Fund pays IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
<PAGE>
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 for
the year ended July 31, 2000.
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, 2000 were $73,589.
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) which included $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 year ended July
31, 2000, the aggregate cost of purchases and proceeds from sales of investment
securities (excluding all U.S. Government securities and short-term securities)
were as follows:
FUND PURCHASES SALES
--------------------------------------------------------------------------------
Blue Chip Growth Fund $ 3,001,208,095 $ 2,692,416,522
Dynamics Fund 7,356,630,566 3,614,475,847
Growth & Income Fund 348,265,497 242,451,890
INVESCO Endeavor Fund 420,749,477 217,957,875
S&P 500 Index Fund 35,080,615 10,532,096
Small Company Growth Fund 2,157,109,948 1,495,294,819
Value Equity Fund 200,743,880 295,835,155
There were no purchases or sales of U.S. Government securities.
NOTE 5 -- APPRECIATION AND DEPRECIATION. At July 31, 2000, 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 $ 486,167,998 $ 65,202,703 $ 420,965,295
Dynamics Fund 2,422,782,561 210,996,723 2,211,785,838
Growth & Income Fund 33,898,084 5,921,330 27,976,754
INVESCO Endeavor Fund 114,077,195 16,452,985 97,624,210
S&P 500 Index Fund 20,189,826 9,202,000 10,987,826
Small Company Growth Fund 234,620,242 63,422,733 171,197,509
Value Equity Fund 70,878,221 23,430,428 47,447,793
NOTE 6 -- TRANSACTIONS WITH AFFILIATES. Certain of the Funds' officers and
directors are also officers and directors of IFG, IDI or ICM.
<PAGE>
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 year ended July 31, 2000, 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 $ 26,268 $ 14,268 $ 89,255
Dynamics Fund 52,203 0 112,957
Growth & Income Fund 1,602 0 1,865
INVESCO Endeavor Fund 2,224 0 2,224
S&P 500 Index Fund 1,237 0 1,482
Small Company Growth Fund 9,486 6,511 40,031
Value Equity Fund 8,351 6,212 33,534
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 the INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO Funds,
excluding the INVESCO Variable Investment Funds.
NOTE 7 -- INTERFUND BORROWING AND LENDING. Each Fund is party to an interfund
lending agreement between each Fund and other INVESCO sponsored mutual funds,
which permit it to borrow or lend cash, at rates beneficial to both the
borrowing and lending funds. Loans totaling 10% or more of a borrowing Fund's
total assets are collateralized at 102% of the value of the loan; loans of less
than 10% are unsecured. Pursuant to each Fund's prospectus, each Fund may borrow
up to 33 1/3% of its total assets for temporary or emergency purposes. During
the year ended July 31, 2000, Blue Chip Growth, Dynamics, Growth & Income, S&P
500 Index and Value Equity Funds borrowed cash at a weighted average rate
ranging from 6.03% to 6.77%. Dynamics and Small Company Growth Funds lent cash
at a weighted average rate of 6.35%. At July 31, 2000, there were no such
borrowings and/or lendings for any Fund.
NOTE 8 -- 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, 2000, Small Company Growth Fund had outstanding lines of credit at interest
rates ranging from 7.00% to 7.19%. The amount of the borrowing and the related
accrued interest are presented in the Statement of Assets and Liabilities. On
August 1, 2000, Small Company Growth Fund paid the lines of credit in full,
including interest. There were no such borrowings in any other Fund.
NOTE 9 -- CONTINGENT DEFERRED SALES CHARGE ("CDSC"). A 1.00% CDSC is charged by
each Fund's Class C shares on redemptions or exchanges of shares held thirteen
months or less (other than shares acquired through reinvestment of dividends or
other distributions). The CDSC is paid by the redeeming shareholder and
therefore, it is not an expense of the Fund. For the period ended July 31, 2000,
the Distributor received an insignificant amount of CDSC from shareholder
redemptions for Blue Chip Growth Fund - Class C and Value Equity Fund - Class C.
The Distributor received $1,361, $180, $444 and $116 for Dynamics Fund - Class
C, Growth & Income Fund - Class C, INVESCO Endeavor Fund - Class C and Small
Company Growth Fund - Class C, respectively.
----------------------------------------------------------------------
<PAGE>
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,
INVESCO Dynamics Fund, INVESCO Growth & Income Fund, INVESCO Endeavor Fund,
INVESCO S&P 500 Index Fund, INVESCO Small Company Growth Fund and INVESCO Value
Equity Fund (constituting INVESCO Stock Funds, Inc., hereafter referred to as
the "Fund") at July 31, 2000, the results of each of their operations for the
year then ended, 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 accounting principles generally accepted in the United States.
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 auditing standards generally accepted in the United States, 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, 2000 by correspondence with the custodian and brokers,
provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Denver, Colorado
September 5, 2000
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND-- INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD
ENDED ENDED
JULY 31 JULY 31 YEAR ENDED AUGUST 31
----------------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 6.75 $ 5.15 $ 6.06 $ 5.44 $ 5.33 $ 5.34
======================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) 0.00 0.00 0.02 0.01 0.03 0.05
Net Gains on Securities
(Both Realized and Unrealized) 2.48 2.11 0.69 1.39 0.95 0.49
======================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.48 2.11 0.71 1.40 0.98 0.54
======================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income(c) 0.00 0.00 0.02 0.01 0.03 0.05
Distributions from Capital Gains 0.76 0.51 1.60 0.77 0.84 0.50
======================================================================================================================
TOTAL DISTRIBUTIONS 0.76 0.51 1.62 0.78 0.87 0.55
======================================================================================================================
Net Asset Value -- End of Period $ 8.47 $ 6.75 $ 5.15 $ 6.06 $ 5.44 $ 5.33
======================================================================================================================
TOTAL RETURN 38.42% 42.06%(d) 13.42% 28.14% 20.23% 12.05%
RATIOS
Net Assets -- End of Period
($000 Omitted) $2,008,680 $1,232,908 $747,739 $709,220 $ 596,726 $ 501,285
Ratio of Expenses to Average
Net Assets 1.02%(e) 1.03%(e)(f) 1.04%(e) 1.07%(e) 1.05%(e) 1.06%
Ratio of Net Investment
Income (Loss) to Average
Net Assets (0.63%) (0.08%)(f) 0.37% 0.22% 0.64% 1.07%
Portfolio Turnover Rate 168% 134%(d) 153% 286% 207% 111%
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income for the year ended July 31, 2000 and 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 year ended July 31,
2000, 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 Class, which is before any expense
offset arrangements (which may include custodian, distribution and transfer
agent fees).
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND -- CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 8.26
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.05)
Net Gains on Securities
(Both Realized and Unrealized) 0.23
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.18
================================================================================
Net Asset Value -- End of Period $ 8.44
================================================================================
TOTAL RETURN(c) 2.18%(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 3,213
Ratio of Expenses to Average Net Assets(e) 1.76%(f)
Ratio of Net Investment Loss to Average Net Assets (1.54%)(f)
Portfolio Turnover Rate 168%(g)
(a) From February 15, 2000, since inception of Class C, to July 31, 2000.
(b) The per share information was computed based on average shares.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(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 Class, which is before any expense
offset arrangements (which may include custodian fees).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore represents
the year ended July 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- INSTITUTIONAL CLASS
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 24.29
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.02)
Net Gains on Securities
(Both Realized and Unrealized) 3.60
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.58
================================================================================
Net Asset Value -- End of Period $ 27.87
================================================================================
TOTAL RETURN 14.74%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 22,989
Ratio of Expenses to Average Net Assets(d) 0.77%(e)
Ratio of Net Investment Loss to Average Net Assets (0.22%)(e)
Portfolio Turnover Rate 75%(f)
(a) From May 23, 2000, since inception of Institutional Class, to July 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, which is before any expense
offset arrangements (which may include custodian fees).
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the year ended July 31, 2000.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
DYNAMICS FUND--INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD
ENDED ENDED
JULY 31 JULY 31 YEAR ENDED APRIL 30
---------------------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 19.39 $ 18.15 $ 16.41 $ 12.02 $ 13.61 $ 11.38
===========================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) (0.00) 0.00 0.00 (0.05) (0.04) 0.02
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 9.51 1.24 3.04 6.39 (0.19) 3.94
===========================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 9.51 1.24 3.04 6.34 (0.23) 3.96
===========================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income(c) 0.00 0.00 0.00 0.00 0.00 0.02
Distributions from Capital Gains 0.00 0.00 1.30 1.95 1.36 1.71
In Excess of Capital Gains 1.04 0.00 0.00 0.00 0.00 0.00
===========================================================================================================================
TOTAL DISTRIBUTIONS 1.04 0.00 1.30 1.95 1.36 1.73
===========================================================================================================================
Net Asset Value -- End of Period $ 27.86 $ 19.39 $ 18.15 $ 16.41 $ 12.02 $ 13.61
===========================================================================================================================
TOTAL RETURN 50.34% 6.83%(d) 20.83% 56.42% (2.34%) 36.32%
RATIOS
Net Assets -- End of Period
($000 Omitted) $7,865,489 $2,471,482 $2,044,321 $1,340,299 $762,396 $ 778,416
Ratio of Expenses to Average
Net Assets(e) 0.89% 1.03%(f) 1.05% 1.08% 1.16% 1.14%
Ratio of Net Investment
Income (Loss) to Average
Net Assets (0.34%) (0.32%)(f) (0.41%) (0.43%) (0.31%) 0.16%
Portfolio Turnover Rate 75% 23%(d) 129% 178% 204% 196%
</TABLE>
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment (Loss) aggregated less than $0.01 on a per share basis for
the year ended July 31, 2000, 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 period 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 Class, which is before any expense
offset arrangements (which may include custodian, distribution and transfer
agent fees).
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 28.25
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.00)
Net Losses on Securities
(Both Realized and Unrealized) (0.47)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (0.47)
================================================================================
Net Asset Value -- End of Period $ 27.78
================================================================================
TOTAL RETURN(c) (1.66%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 4,779
Ratio of Expenses to Average Net Assets(e) 1.71%(f)
Ratio of Net Investment Loss to Average Net Assets (1.20%)(f)
Portfolio Turnover Rate 75%(g)
(a) From February 15, 2000, since inception of Class C, to July 31, 2000.
(b) The per share information was computed based on average shares.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(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 Class, which is before any expense
offset arrangements (which may include custodian fees).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore represents
the year ended July 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
--------------------------------------------------------------------------------
2000 1999(a) 1999(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 15.37 $ 14.54 $ 10.00
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(c) 0.00 0.00 0.00
Net Gains on Securities
(Both Realized and Unrealized) 4.60 0.83 5.22
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 4.60 0.83 5.22
================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 1.04 0.00 0.68
================================================================================
Net Asset Value--End of Period $ 18.93 $ 15.37 $ 14.54
================================================================================
TOTAL RETURN 30.79% 5.71%(d) 53.07%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $200,584 $ 61,316 $ 53,994
Ratio of Expenses to Average
Net Assets(e)(f) 1.46% 1.52%(g) 1.52%(g)
Ratio of Net Investment Loss to
Average Net Assets(f) (85%) (0.45%)(g) (0.25%)(g)
Portfolio Turnover Rate 177% 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
year ended July 31, 2000 and for the periods ended July 31, 1999 and April
30, 1999.
(d) Based on operations for the periods shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the year
ended July 31, 2000 and 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 1.46%, 1.75% (annualized) and 1.71%
(annualized), respectively, and ratio of net investment loss to average net
assets would have been (0.85%), (0.68%) (annualized) and (0.44%)
(annualized), respectively.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 18.19
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.13)
Net Gains on Securities (Both Realized and Unrealized) 0.81
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.68
================================================================================
Net Asset Value -- End of Period $ 18.87
================================================================================
TOTAL RETURN(c) 3.74%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 1,388
Ratio of Expenses to Average Net Assets(e) 2.00%(f)
Ratio of Net Investment Loss to Average Net Assets (1.63%)(f)
Portfolio Turnover Rate 177%(g)
(a) From February 15, 2000, since inception of Class C, to July 31, 2000.
(b) The per share information was computed based on average shares.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(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 Class, which is before any expense
offset arrangements (which may include custodian fees).
(f) Annualized
(g)Portfolio Turnover is calculated at the Fund level, and therefore represents
the year ended July 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
INVESCO ENDEAVOR FUND -- INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD PERIOD
ENDED ENDED ENDED
JULY 31 JULY 31 APRIL 30
--------------------------------------------------------------------------------
2000 1999(a) 1999(b)
PER SHARE DATA
Net Asset Value--Beginning of Period $ 16.61 $ 16.32 $ 10.00
================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss(d) (0.00) (0.03) (0.03)
Net Gains on Securities
(Both Realized and Unrealized) 9.04 0.32 6.35
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 9.04 0.29 6.32
================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 0.23 0.00 0.00
In Excess of Capital Gains 1.10 0.00 0.00
================================================================================
TOTAL DISTRIBUTIONS 1.33 0.00 0.00
================================================================================
Net Asset Value--End of Period $ 24.32 $ 16.61 $ 16.32
================================================================================
TOTAL RETURN 55.84% 1.78%(e) 63.20%(e)
RATIOS
Net Assets--End of Period ($000 Omitted) $ 390,638 $109,532 $ 72,592
Ratio of Expenses to Average Net Assets(f) 1.41% 1.49%(g) 1.43%(g)
Ratio of Net Investment Loss to
Average Net Assets (0.93%) (0.83%)(g) (0.55%)(g)
Portfolio Turnover Rate 81% 47%(e) 107%(e)
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) From October 28, 1998, commencement of investment operations, to April 30,
1999.
(c) The per share information was computed based on average shares for the
period ended April 30, 1999.
(d) Net Investment Loss aggregated less than $0.01 on a per share basis for the
year ended July 31, 2000.
(e) Based on operations for the periods shown and, accordingly, are not
representative of a full year.
(f) Ratio is based on Total Expenses of the Class, which is before any expense
offset arrangements (which may include custodian fees).
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
INVESCO ENDEAVOR FUND -- CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 25.74
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.16)
Net Losses on Securities
(Both Realized and Unrealized) (1.31)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (1.47)
================================================================================
Net Asset Value-- End of Period $ 24.27
================================================================================
TOTAL RETURN(c) (5.71%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 2,509
Ratio of Expenses to Average Net Assets(e) 2.05%(f)
Ratio of Net Investment Loss to Average Net Assets (1.58%)(f)
Portfolio Turnover Rate 81%(g)
(a) From February 15, 2000, since inception of Class C, to July 31, 2000.
(b) The per share information was computed based on average shares.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(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 Class, which is before any expense
offset arrangements (which may include custodian fees).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore represents
the year ended July 31, 2000.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND-- INSTITUTIONAL CLASS
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
--------------------------------------------------------------------------------------------
2000 1999 1998(a)
<S> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 14.21 $ 12.01 $ 10.00
============================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.15 0.18 0.11
Net Gains on Securities
(Both Realized and Unrealized) 1.05 2.26 1.98
============================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.20 2.44 2.09
============================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.22 0.19 0.08
Distributions from Capital Gains 0.10 0.05 0.00
In Excess of Capital Gains 0.02 0.00 0.00
============================================================================================
TOTAL DISTRIBUTIONS 0.34 0.24 0.08
============================================================================================
Net Asset Value--End of Period $ 15.07 $ 14.21 $ 12.01
============================================================================================
TOTAL RETURN(b) 8.47% 20.40% 20.93%(c)
RATIOS
Net Assets--End of Period ($000 Omitted) $ 2,627 $ 4,420 $ 3,259
Ratio of Expenses to Average Net Assets(d)(e) 0.36% 0.35% 0.46%(f)
Ratio of Net Investment Income to Average Net Assets(e) 1.00% 1.36% 1.96%(f)
Portfolio Turnover Rate(g) 13% 2% 0%(c)
</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 Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(e) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2000 and 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 1.00%, 1.17% and 2.51% (annualized),
respectively, and ratio of net investment income (loss) to average net
assets would have been 0.36%, 0.54% and (0.09%) (annualized), respectively.
(f) Annualized
(g) Portfolio Turnover Rate calculated to less than 0.10% for the period ended
July 31, 1998.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND -- INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
--------------------------------------------------------------------------------------------
2000 1999 1998(a)
<S> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 14.39 $ 12.14 $ 10.00
============================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.11 0.14 0.07
Net Gains on Securities
(Both Realized and Unrealized) 1.09 2.29 2.14
============================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.20 2.43 2.21
============================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.11 0.13 0.07
Distributions from Capital Gains 0.10 0.05 0.00
In Excess of Capital Gains 0.02 0.00 0.00
============================================================================================
TOTAL DISTRIBUTIONS 0.23 0.18 0.07
============================================================================================
Net Asset Value--End of Period $ 15.36 $ 14.39 $ 12.14
============================================================================================
TOTAL RETURN(b) 8.34% 20.09% 22.11%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 92,784 $ 64,613 $ 15,065
Ratio of Expenses to Average Net Assets(d)(e) 0.63% 0.60% 0.62%(f)
Ratio of Net Investment Income to Average Net Assets(e) 0.74% 1.06% 1.52%(f)
Portfolio Turnover Rate(g) 13% 2% 0%(c)
</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 Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(e) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2000 and 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 0.95%, 0.99% and 1.71% (annualized),
respectively, and ratio of net investment income to average net assets
would have been 0.43%, 0.67% and 0.43% (annualized), respectively.
(f) Annualized
(g) Portfolio Turnover Rate calculated to less than 0.10% for the period ended
July 31, 1998.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND -- INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD
ENDED ENDED
JULY 31 JULY 31 YEAR ENDED MAY 31
---------------------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 13.61 $ 12.08 $ 11.90 $ 12.82 $ 14.38 $ 9.37
===========================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) (0.00) 0.00 0.00 (0.06) (0.07) (0.06)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 6.88 1.53 1.35 2.56 (0.96) 5.25
===========================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 6.88 1.53 1.35 2.50 (1.03) 5.19
===========================================================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 1.99 0.00 1.17 3.42 0.53 0.18
===========================================================================================================================
Net Asset Value--End of Period $ 18.50 $ 13.61 $ 12.08 $ 11.90 $ 12.82 $ 14.38
===========================================================================================================================
TOTAL RETURN 53.55% 12.67%(c) 12.91% 22.65% (7.08%) 55.78%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 1,440,445 $ 452,861 $ 318,109 $ 272,619 $ 294,259 $ 370,029
Ratio of Expenses to Average
Net Assets(d)(e) 1.20% 1.50%(f) 1.51% 1.48% 1.52% 1.48%
Ratio of Net Investment Loss
to Average Net Assets(d) (0.34%) (0.69%)(f) (0.58%) (0.42%) (0.55%) (0.78%)
Portfolio Turnover Rate 186% 41%(c) 203% 158% 216% 221%
</TABLE>
(a) From June 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income (Loss) for the year ended July 31, 2000 and 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 Class were voluntarily absorbed by IFG for the year
ended July 31, 2000, the period ended July 31, 1999, and for the years
ended May 31, 1999 and 1997. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 1.21%,
1.62% (annualized), 1.59% and 1.54%, respectively, and ratio of net
investment loss to average net assets would have been (0.35%), (0.81%)
(annualized), (0.66%) and (0.57%), respectively.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian, distribution and transfer agent
fees).
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND--CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 20.68
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(b) (0.00)
Net Losses on Securities
(Both Realized and Unrealized) (2.31)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (2.31)
================================================================================
Net Asset Value--End of Period $ 18.37
================================================================================
TOTAL RETURN(c) (11.17%)(d)
RATIOS
Net Assets--End of Period ($000 Omitted) $ 1,926
Ratio of Expenses to Average Net Assets(e) 1.83%(f)
Ratio of Net Investment Loss to Average Net Assets (0.91%)(f)
Portfolio Turnover Rate 186%(g)
(a) From February 15, 2000, since inception of Class C, to July 31, 2000.
(b) Net Investment Loss for the year ended July 31, 2000 aggregated less than
$0.01 on a per share basis.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(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 Class, which is before any expense
offset arrangements (which may include custodian fees).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore
represents the year ended July 31, 2000.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND -- INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD
ENDED ENDED
JULY 31 JULY 31 YEAR ENDED AUGUST 31
---------------------------------------------------------------------------------------------------------------------------
2000 1999(a) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 29.61 $ 25.68 $ 28.30 $ 22.24 $ 19.53 $ 18.12
===========================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.11 0.17 0.26 0.35 0.35 0.39
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (1.96) 6.25 (0.43) 6.62 3.09 2.58
===========================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS (1.85) 6.42 (0.17) 6.97 3.44 2.97
===========================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income(b) 0.11 0.17 0.26 0.35 0.35 0.39
Distributions from Capital Gains 2.50 2.32 2.19 0.56 0.38 1.17
===========================================================================================================================
TOTAL DISTRIBUTIONS 2.61 2.49 2.45 0.91 0.73 1.56
===========================================================================================================================
Net Asset Value--End of Period $ 25.15 $ 29.61 $ 25.68 $ 28.30 $ 22.24 $ 19.53
===========================================================================================================================
TOTAL RETURN (6.52%) 25.41%(c) (1.06%) 32.04% 17.77% 17.84%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 248,944 $ 369,982 $ 349,984 $ 369,766 $ 200,046 $ 153,171
Ratio of Expenses to Average
Net Assets(d) 1.31%(e) 1.27%(e)(f) 1.15%(e) 1.04%(e) 1.01%(e) 0.97%
Ratio of Net Investment
Income to Average
Net Assets(d) 0.40% 0.63%(f) 0.86% 1.35% 1.64% 2.17%
Portfolio Turnover Rate 67% 22%(c) 48% 37% 27% 34%
</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 year ended July
31, 2000, 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 Class were voluntarily absorbed by IFG for the year
ended July 31, 2000, 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 1.44%, 1.38% (annualized)
and 1.19%, respectively, and ratio of net investment income to average net
assets would have been 0.27%, 0.52% (annualized) and 0.82%, respectively.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Advisor, if applicable, which is before any offset arrangements
(which may include custodian and transfer agent fees).
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND--CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
JULY 31
--------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value--Beginning of Period $ 24.72
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.06)
Net Gains on Securities
(Both Realized and Unrealized) 0.45
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.39
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income(b) 0.21
================================================================================
Net Asset Value--End of Period $ 24.90
================================================================================
TOTAL RETURN(c) 1.52%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 96
Ratio of Expenses to Average Net Assets(e)(f) 2.13%(g)
Ratio of Net Investment Loss to Average Net Assets(e) (0.49%)(g)
Portfolio Turnover Rate 67%(h)
(a) From February 15, 2000 since inception of Class C, to July 31, 2000.
(b) Distributions in excess of net investment income for the period ended July
31, 2000, aggregated less than $0.01 on a per share basis.
(c) The applicable CDSC fees are not included in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Various expenses of the Class were voluntarily absorbed by IFG for the
period ended July 31, 2000. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 2.22%
(annualized) and ratio of net investments loss to average net assets would
have been (0.58%) (annualized).
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level, and therefore
represents the year ended July 31, 2000.
<PAGE>
INVESCO FAMILY OF FUNDS
<TABLE>
<CAPTION>
Investor Class Class C Shares Newspaper
Fund Name Fund Code Fund Code Ticker Symbol Abbreviation
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STOCK
Growth & Income 21 321 IVGIX Gro&Inc
Blue Chip Growth 10 310 FLRFX BlChpGro
Dynamics 20 320 FIDYX Dynm
Small Company Growth 60 360 FIEGX SmCoGth
INVESCO Endeavor 61 361 IVENX Endeavor
Value Equity 46 346 FSEQX ValEq
S&P 500 Index Fund 23 n/a ISPIX S&P500II
-----------------------------------------------------------------------------------------------------
BOND
U.S. Government Securities 32 332 FBDGX USGvt
Select Income 30 330 FBDSX SelInc
High Yield 31 331 FHYPX HiYld
Tax-Free Bond 35 335 FTIFX TxFreeBd
-----------------------------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Equity Income 15 315 FIIIX EquityInc
Total Return 48 345 FSFLX TotRtn
Balanced 71 371 IMABX Bal
-----------------------------------------------------------------------------------------------------
SECTOR
Energy 50 350 FSTEX Enrgy
Financial Services 57 357 FSFSX FinSvc
Gold 51 351 FGLDX Gold
Health Sciences 52 352 FHLSX HlthSc
Leisure 53 353 FLISX Leisur
Real Estate Opportunity 42 342 IVSRX Realty
Technology 55 355 FTCHX Tech
Telecommunications 39 339 ISWCX Telecom
Utilities 58 358 FSTUX Util
-----------------------------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip Value 09 309 IIBCX ItlBlChp
Pacific Basin 54 354 FPBSX PcBas
European 56 356 FEURX Europ
Latin American Growth 34 334 IVSLX LtnAmerGr
-----------------------------------------------------------------------------------------------------
MONEY MARKET
U.S. Government Money 44 n/a FUGXX InvGvtMF
Cash Reserves 25 325 FDSXX InvCshR
Tax-Free Money 40 n/a FFRXX InvTaxFree
Treasurer's Money Market Reserve 96 n/a IMRXX INVESCOMMR
Treasurer's Tax-Exempt Reserve 95 n/a ITTXX INVESCOTTE
</TABLE>
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES,
RISKS, AND EXPENSES, PLEASE VISIT OUR WEB SITE OR CALL US AT 1-800-525-8085 FOR
A PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
YOU SHOULD
KNOW WHAT
INVESCO KNOWS(R)
[INVESCO ICON] INVESCO FUNDS
We're easy to stay in touch with:
Investor Services: 1-800-525-8085
Personal Account Line: 1-800-424-8085
On the World Wide Web: invescofunds.com
INVESCO Distributors, Inc.(SM), Distributor
Post Office Box 173707
Denver, Colorado 80217-3707
This information must be preceded or accompanied
by a current prospectus.
AEQ 9197 9/00
