KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
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YOU SHOULD KNOW WHAT INVESCO KNOWS (TM)
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INVESCO STOCK FUNDS
BLUE CHIP GROWTH FUND
DYNAMICS FUND
GROWTH & INCOME FUND
INVESCO ENDEAVOR FUND
SMALL COMPANY GROWTH FUND
VALUE EQUITY FUND
S&P 500 INDEX FUND
SEMIANNUAL
SEMIANNUAL REPORT | January 31, 2000 [INVESCO ICON] INVESCO FUNDS(R)
A MEMBER OF THE AMVESCAP GROUP
<PAGE>
"INDEED, IN THIS VERY HEALTHY ENVIRONMENT, FAST-GROWING MARKETS CAN BE FOUND IN
DISPARATE AREAS OF THE ECONOMY--NOT SIMPLY TELECOMMUNICATIONS AND TECHNOLOGY."
(PAGE 7)
"WE'RE GETTING A CLEARER VISION OF WHAT THIS FUTURE IS LIKE, BUT FEW
OF US LIVE IT ON A DAILY BASIS." (PAGE 17)
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 1/31/00. 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)
Graph: Blue Chip Growth Fund
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Blue Chip Growth Fund to the value of a $10,000 investment in the
S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended
January 31, 2000.
Graph: Dynamics Fund
10-Year Total Return vs. S&P MidCap 400 Index
This line graph compares the value of a $10,000 investment in INVESCO
Dynamics Fund to the value of a $10,000 investment in the S&P MidCap
400 Index, assuming in each case reinvestment of all dividends and
capital gain distributions, for the ten year period ended January 31,
2000.
Graph: Small Company Growth Fund
Total Return Since Inception vs. Russell 2000 Index
This line graph compares the value of a $10,000 investment in INVESCO
Small Company Growth Fund 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 since
inception (12/91) through January 31, 2000.
Graph: Value Equity Fund
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
Value Equity Fund to the value of a $10,000 investment in the S&P 500
Index, assuming in each case reinvestment of all dividends and
capital gain distributions, for the ten year period ended January 31,
2000.
Graph: INVESCO Endeavor Fund
Total Return Since Inception vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Endeavor Fund to the value of a $10,000 investment in the
S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the period from inception (10/98)
through January 31, 2000.
<PAGE>
Graph: Growth & Income Fund
Total Return Since Inception vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Growth & Income Fund to the value of a $10,000 investment in
the S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the period from inception (7/98)
through January 31, 2000.
Graph: S&P 500 Index Fund -Investor Class and
S&P 500 Index Fund-Institutional Class
Total Return Since Inception vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in INVESCO
S&P 500 Index Fund-Investor Class and a $10,000 investment in INVESCO
S&P 500 Index Fund-Institutional 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 January 31, 2000.
TOTAL RETURN,
PERIODS ENDED 1/31/00(1)
CUMULATIVE AVERAGE ANNUALIZED PAGE
6 MONTHS 1 YEAR 5 YEARS* 10 YEARS* NUMBER
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Blue Chip Growth 29.27% 28.51% 30.95% 20.16% 4
Dynamics 37.06% 59.52% 32.74% 24.88% 6
Growth & Income 22.50% 30.48% 53.81% (since inception 7/98) 8
INVESCO Endeavor 49.56% 61.52% 105.54% (since inception 10/98) 10
Small Company Growth 47.66% 71.62% 28.42% 22.94%** 12
Value Equity -5.12% -4.23% 16.23% 13.66% 14
S&P 500 Index -
Institutional Class 5.56% 9.74% 22.60%*** 16
S&P 500 Index -
Investor Class 5.47% 9.51% 22.96%*** 16
* AVERAGE ANNUALIZED
** SINCE INCEPTION 12/91
*** SINCE INCEPTION 12/97
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BLUE CHIP GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
When we wrote to you last year, we noted that the environment for large company
growth stocks had become more difficult, but that we were optimistic that their
impressive earnings would again result in strong stock performance. We are happy
to report that this turnaround did occur--and perhaps more quickly than we had
hoped. Once again, growth companies have distinguished themselves in an overall
lackluster market.
For the six-month period ended January 31, 2000, the value of your shares rose
29.27%. This far exceeded the return of the S&P 500 Index over the same period,
which rose 5.58%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
GROWTH REACCELERATES
The positive environment for growth stocks most directly reflects the strength
and durability of the New Economy. As you know, most of the pessimistic
prognostications for the economy last year failed to materialize: inflation did
not reignite, growth did not slow, and Y2K did not shut down any major systems.
Indeed, growth reaccelerated in the last two quarters of the year, and most
major companies have continued to enjoy healthy earnings.
Such is not to say, however, that significant areas of the economy have not
experienced problems. The regional Bell operating companies have disappointed
many investors due to their slowness in exploiting the potential for "digital
subscriber lines," which provide high-speed Internet access to homes and
businesses. Some prominent consumer goods companies have also exhibited
disappointing unit sales growth, while their ability to expand earnings through
price increases seems limited.
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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 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>
LOOKING FOR THE YOUNG AND HUNGRY
For these reasons, we have increased our investments in younger companies that
are aggressively pursuing more lucrative, expanding markets. Covad
Communications Group, for example, provides high-speed Internet access using
lines owned by the regional Bells. Although it must first cooperate with the
regional carriers to gain access to the consumer, Covad has shown its ability to
be quicker to exploit these new opportunities than its more entrenched
competition. Because companies such as Covad are generally somewhat smaller, we
have recently seen the median market capitalization of the fund
decrease--although it is still well within our "blue chip" target range.
Of course, not all more established firms have been slow to respond to the
promises opened by these new technologies. Charles Schwab, for example, recently
broadened its already substantial position in the financial services industry by
acquiring the online trading firm Cybercorp and U.S. Trust, a leading wealth
management firm for affluent families and individuals. When combined with
Schwab's online services and its "bricks and mortar" investor centers, these two
investments assure that Schwab will have an almost unique presence before the
consumer shopping for financial services.
A SHIFT IN HEALTH CARE
A notable shift in the portfolio has come in our health care holdings. As we
informed you six months ago, we have maintained many of our positions in the
sector even as last year proved difficult for the stocks of many firms. This
stance was based on our continuing faith that health care was true growth sector
in that it was growing faster than the the economy as a whole. We still believe
this. Lately, however, we have shifted the composition of our holdings toward
biotechnology companies. Large biotechnology firms like Genentech Inc have
extensive "product pipelines" of drugs working their way through the regulatory
process and should soon see the benefits of the enormous research expenditures
they have made over the past few decades.
Overall, we believe that many large companies have significant room to grow; we
can easily envision double-digit growth rates out several years for many leading
firms. As we have noted before, we believe these expansion rates ultimately
drive performance--even as the market periodically reassesses the price it is
willing to pay for such growth.
/s/ Trent E. May /s/ Douglas J. McEldowney
Trent E. May Douglas J. McEldowney
Vice President Vice President
<PAGE>
DYNAMICS FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
This has been a very strong period for the fund. Driving our performance, in
part, has been investors' greater willingness to invest in mid-capitalization
stocks. But a greater factor in our results has been our consistent focus on top
firms in growing markets.
While this strategy has brought good returns over most of the past several
years, it was particularly rewarding over the past six months. With the immense
scope of the New Economy steadily becoming clear, investors have placed an
increasing premium on companies' future position within it. This is a market
environment doubly favorable for the medium-sized companies in which we invest.
For the six-month period ended January 31, 2000, the value of your shares rose
37.06%. This far exceeded the return of the S&P MidCap 400 Index over the same
period, which rose 6.59%. (Of course, past performance is not a guarantee of
future results.)(1),(2)
BUSINESS ON THE INTERNET
Our holdings in the technology and communications sectors were responsible for
many of our largest gains. Although much attention recently has focused on
personal use of the Internet, business use of the new communication networks has
proved to be an even more vibrant domain. Network Appliance, Inc has been one of
the most rewarding investments for us in this area. As a leading supplier of
file servers and Internet cache systems, Network Appliance enjoys steep demand
for its products from companies that need quick access to large stores of data.
As more companies go online to seek customers and interact with suppliers, the
need for such access is growing rapidly. In a related vein, businesses are also
investing heavily in customer relationship software, which helps them manage
orders and inventory. Another fund holding, Siebel Systems, is a leader in this
market.
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FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER IS LEAD MANAGER OF DYNAMICS FUND. HE ALSO LEADS
INVESCO'S GROWTH INVESTMENT MANAGEMENT TEAM. PRIOR TO JOINING INVESCO, TIM WAS
ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 13 YEARS, WHERE HE WAS AN
ANALYST AND PORTFOLIO MANAGER. HE HOLDS AN MBA FROM THE UNIVERSITY OF MISSOURI
(ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A CHARTERED FINANCIAL
ANALYST. TIM HAS 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>
Aside from new markets, areas of the economy where new competion is pushing
aside incumbents is also a common growth theme at INVESCO. In the communications
sector, many so-called "competitive local exchange carriers," created to compete
with the "baby Bells," have been top performers based on their aggressive push
into previously protected markets. This is somewhat of a global trend: one such
holding, Colt Telecom Group PLC, is competing very effectively in Europe.
THE BOOM IN BIOTECHNOLOGY
Indeed, in this healthy environment, fast-growing markets can be found in
disparate areas of the economy -- not simply telecommunications and technology.
With the traditional health care sector led by pharmaceutical firms apparently
slowing, we have recently moved many of our investments in this area into
biotechnology firms. Of course, biotechnology firms have been around for a few
decades, but many are just now making the transition from research-focused firms
to active producers and marketers of bioengineered drugs. These firms' "product
pipelines" of drugs working their way through the regulatory process are quite
full, suggesting the potential for very strong sales for many years to come.
Of course, not all growing markets have been rewarded with investor enthusiasm.
This has certainly been true lately of the financial services industry. Though
quite healthy, many financial services firms have been damaged by worries over
higher interest rates. The same holds true for the consumer goods sector, with
investors on heightened alert for any sign of slowing sales. Where we have seen
real evidence of slowing growth in these areas we have reduced our positions. In
other cases, we have decided to hold our position in the expectation that
investor sentiment will once again become positive.
Overall, though, we are glad to report that there have been few dark spots on
our investment horizon. We will look forward to reporting to you again in six
months.
/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:
Since we last wrote to you, we have enjoyed continued strong performance, even
as the S&P 500 has leveled off somewhat. We believe our recent performance
validates our two-pronged strategy of combining large, dividend paying stocks
with faster-growing companies in high-growth sectors.
For the six-month period ended January 31, 2000, the value of your shares rose
22.50%. This far exceeded the return of the S&P 500 Index over the same period,
which rose 5.58%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
While many facets of the market remained the same, 1999 witnessed one notable
transformation in investor sentiment: For the first time in a few years, small-
and mid-sized growth stocks outperformed their larger counterparts. While
earnings growth remained quite healthy for the largest companies, revenue growth
seemed to be accelerating fastest at smaller firms. Most such firms, not
surprisingly, could be found in the technology and telecommunications sectors.
BALANCING GROWTH AND STABILITY
Our challenge over this period has been to accommodate this shifting growth
dynamic while, at the same time, maintaining stability in the portfolio. We have
made few additions and substractions to the core positions in our portfolio,
doing so only in cases where we have perceived a clear signal that underlying
fundamentals have changed. We removed Procter & Gamble, for example, based on
our determination that its revenues from its consumer goods business was slowing
down -- a problem that has also plagued the beverage giant Coca Cola. Exxon
Mobil, on the other hand, remains a core position based on our faith in its
continuing leadership in the energy sector and healthy dividend yield.
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FUND MANAGEMENT
TRENT E. MAY, CFA
VICE PRESIDENT TRENT E. MAY IS LEAD 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.
FRITZ MEYER
VICE PRESIDENT FRITZ MEYER IS CO-MANAGER OF GROWTH & INCOME FUND. FRITZ RECEIVED
HIS AB FROM DARTMOUTH COLLEGE WITH A DISTINCTION IN ECONOMICS, AND HIS MBA FROM
AMOS TUCK SCHOOL-DARTMOUTH COLLEGE. HE BEGAN HIS INVESTMENT CAREER IN 1976 AND
JOINED INVESCO IN 1996. PRIOR TO JOINING INVESCO, FRITZ WAS AN EXECUTIVE VICE
PRESIDENT AND PORTFOLIO MANAGER WITH NELSON, BENSON & ZELLMER, INC. IN DENVER,
COLORADO.
<PAGE>
To seek out faster growth we have broadened our significant investments in the
technology sector. Within the sector, many of our recent additions have focused
on the theme of business-to-business, or "B2B," commerce. As one analyst
recently pointed out, the value of business carried out between corporations and
their various suppliers is potentially 10 times as large as that represented by
the value of the final goods produced. Companies that find a new way of
capturing even a small piece of those myriad transactions stand to benefit
immensely.
Business software firms strike us as particularly well poised to seize these
opportunities. Many of these firms faced difficulties last year as their
customers devoted information technology budgets to Y2K preparedness rather than
to improving their software capabilities. But the need to further streamline the
sharing of information between departments, suppliers, and customers did not
disappear; lately, orders have bounced back. The German software firm SAP AG, a
worldwide leader in such software, has been a rewarding addition to the fund.
THE BROADBAND EXPLOSION
The growth in broadband technology to speed the transmission of data, voice, and
audio has also driven some of our investments. Recently, we have taken a stake
in Corning Inc, the century-old manufacturer of glassware. Corning Inc has
recently reinvented itself, disposing of many of its traditional product lines
to focus on the optical communications technologies used in fiber-optic
networks. Corning's deep tradition of science and technology research, paired
with exciting new markets, seems to us a potent combination.
Our technology holdings are also playing a growing role in defining the core
portfolio. Increasingly, the outlines of a new techno-telecom order are becoming
clear. Many major companies are increasingly reliant on a four-part chain: Sun
servers generate data that is passed through Cisco Systems routers, stored using
EMC Corp systems, and then accessed using Oracle Corp software. And, of course,
Microsoft Corp supplies the desktop software for the back offices. Our portfolio
has focused on all of these firms to various degrees, based on our perception of
their valuations and other factors.
Of course, many worry that technology valuations have gotten out of hand. We
appreciate those concerns -- too many stocks carry large valuations based on the
merest promise of future earnings. But we also believe that the future outlines
of the New Economy are steadily becoming clearer as the winners are sorted out.
We are optimistic that our focus on these real leaders, combined with our other
holdings in more traditional sectors, will allow us to profit from the potential
of technology while minimizing volatility.
We will look forward to reporting to you in six months.
/s/ Trent E. May /s/ Fritz Meyer
Trent E. May, CFA Fritz Meyer
Vice President Vice President
<PAGE>
INVESCO ENDEAVOR FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
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Dear Shareholder:
Once again, we are happy to report to you on a very successful six months for
the fund. Our aggressive investing in high-growth companies has earned us
handsome returns, even as the markets have periodically pulled back.
As we had anticipated, the scale of growth in the economy's leading sectors has
continued to exceed most forecasts. Companies have continued to pour resources
into equipping themselves for the New Economy, and prosperous and optimistic
consumers have continued to fuel growth. While we are cognizant of the factors
that might slow the economy, we see few signs that the fundamentals driving the
leading growth sectors will derail anytime soon.
For the six-month period ended January 31, 2000, the value of your shares rose
49.56%. This far exceeded the return of the S&P 500 Index over the same period,
which rose 5.58%. (Of course, past performance is not a guarantee of future
results.)1,2
SEEKING GROWTH WHEREVER IT CAN BE FOUND
In our last report to you, we noted that we had been investing in smaller
companies in our search for rapid earnings and revenue growth. We have continued
with this approach, and it has proved a lucrative strategy as smaller- and
medium-sized growth companies have generally outperformed their larger
counterparts. We have found many of these smaller firms in the communications
equipment industry, which relies on smaller firms to provide key components for
fiber optic and cellular networks. Internet software consultants have also been
rich source for such firms.
On the other hand, we have periodically taken substantial positions in
large-capitalization stocks that seemed particularly attractive. We made a
significant and rewarding investment in the German software company SAP AG, for
example, which has profited from the boom in business software sales as
customers gear up for the Internet. The Finnish telecommunications equipment
maker Nokia has been another such investment. The world leader in cellular
handsets, Nokia has continued to top profit estimates as consumer demand booms.
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FUND MANAGEMENT
TIMOTHY J. MILLER, CFA
SENIOR VICE PRESIDENT TIM MILLER OVERSEES INVESCO ENDEAVOR FUND. THE FUND DRAWS
ON THE BEST IDEAS OF THE ENTIRE INVESCO GROWTH TEAM, WHICH TIM ALSO HEADS. PRIOR
TO JOINING INVESCO, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 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>
THE GENOMICS REVOLUTION
Biotechnology has recently emerged as an investment theme in the fund. For the
first time, biotechnology firms are seeing their products come to market in
large numbers. Indeed, this is happening just as a number of traditional
pharmaceutical firms are seeing their "product pipelines" fail to keep up with
past growth rates, suggesting that biotech might capture some of the lucrative
drug market. This year should also see the first preliminary mapping of the
genetic code, which will hopefully start the "genomics" revolution by making
possible tailored drug treatments based on genetic information.
Those of you reading other INVESCO stock fund reports will recognize many of
these themes and companies. As you know, INVESCO Endeavor Fund combines the best
ideas of the INVESCO Growth Team. This team continues to grow as we add managers
and analysts, a factor we think will make the quality of these ideas even
better. Of course, many of the companies we invest in have high valuations, and
investors should expect some volatility as events unfold. Still, we believe the
picture for aggressive growth investors remains a promising one.
/s/ Timothy J. Miller
Timothy J. Miller, CFA
Senior Vice President
<PAGE>
SMALL COMPANY GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
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Dear Shareholder:
This has been a rewarding period for the fund. Small, growing companies have
received renewed attention from investors, who only last year focused almost
exclusively on large, frequently traded firms. At the same time, however, the
small stock rebound has been very narrow, focused almost entirely on rapidly
growing firms in sectors such as telecommunications and technology. Fortunately,
our substantial investments in these areas helped fund performance considerably.
For the six-month period ended January 31, 2000, the value of your shares rose
47.66%. This return once again far exceeded that of the Russell 2000 Index over
the same period, which rose just 12.25%. (Of course, past performance is no
guarantee of future results.)(1),(2)
"DESIGNED-IN" GROWTH
With world growth recovering and the U.S. economy steaming ahead, opportunities
have been abundant for smaller companies. This has been particularly true in the
field of communications technology, where end-user demand is booming, and where
large companies are making substantial investments in adding capacity. Many
small firms engaging in specialized production offer products that are "designed
in" to these larger systems. Thus, these firms enjoy both a booming market and
pricing power within it. Examples of such a favored firms include REMEC Inc, a
maker of microwave components for the cellular phone industry, and Semtech Corp,
which supplies crucial chips to the telecommunications industry.
Software is another field where smaller firms can establish lucrative niches.
IONA Technologies PLC Sponsored ADR, a maker of so-called "middleware"
technology that allows different software packages to communicate with one
another, has also been a profitable investment. Companies use IONA's software to
manage the "e-portals" which serve to connect internal software systems such as
Oracle and SAP to interact with outside computers via the Internet. As the
importance of business-to-business becomes increasingly clear, this promises to
be an immense market.
The performance of many of these technology and communications stocks has been
particularly notable in relation to smaller stocks in other sectors and
industries. Retailers of both clothing and consumer electronics have suffered,
for example, as interest rate worries have led many investors to believe that
sales will slow. Although our technology stocks now comprise over 40% of the
portfolio, we remain diversified across sectors. This seems to us a prudent
position should market conditions change, and we are optimistic that we will see
strong growth in several consumer segments.
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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 CHARTERED FINANCIAL
ANALYST. SHE IS ASSISTED BY CO-MANAGERS TIMOTHY J. MILLER AND TRENT E. MAY.
<PAGE>
EARLY IN THE CYCLE?
Overall, our "bottom-up" perspective on the small-capitalization market -- one
that searches for opportunities company by company -- is very encouraging. From
a top-down perspective, though, we should note that small-cap stocks tend to
perform well relative to larger firms over cycles of roughly four years.
Small-capitalization stocks have performed better than large-capitalization
firms only since last March, indicating that this cycle might have several more
years to run. Of course, it is important to keep in mind that the stock market
does not move in tune with any celestial clockwork; events might well disappoint
us.
Still, the underlying health of our holdings gives us good reason for optimism
moving forward. We will look forward to reporting to you again soon.
/s/ Stacie L. Cowell
Stacie L. Cowell, CFA
Vice President
<PAGE>
VALUE EQUITY FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGERS
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Dear Shareholder:
In our last report to you, we noted that value funds had "snapped back" from
their period of earlier underperformance. While we were hopeful this trend would
continue, the gap between a limited range of high-growth companies and the rest
of the market has re-emerged. Indeed, the gap in many ways is as large it has
been in the market's history. This result is disappointing for value investors,
to be sure, but it also seems to us to have heightened the importance of taking
a long-term view of the equity markets.
For the six-month period ended January 31, 2000, the value of your shares
declined 5.12%. This return lagged that of the S&P 500 Index, which rose 5.58%
over the same period. (Of course, past performance is not a guarantee of future
results.)(1),(2)
AN ABORTIVE REBOUND
With world growth recovering and the prices of many raw materials on the rise,
investors showed interest early last year in the companies that benefit most
from a strong world economy. These companies are most often found in traditional
value sectors, such as energy, manufacturing, transportation, and consumer
goods. Value stocks bounced back from the lows they had experienced in the
depths of 1998's Asian financial crisis. As they did, many of our holdings fared
well.
By the summer, however, many investors had returned to their old ways. Ignoring
the continued health of many large, traditional companies, investors began to
fret that higher interest rates would slow down the economy, or perhaps even
that the record-long American economic expansion had run its course. Any fears
of a slowdown were soon dispelled as economic growth reaccelerated in the fall.
Nonetheless, investors continued to favor rapidly growing companies that they
believed would be immune from any slowdown. In our eyes, too many of them were
merely feeding a bubble, chasing after stocks that had gone up dramatically in
the hopes that the momentum would continue.
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FUND MANAGEMENT
MICHAEL C. HARHAI, CFA
MICHAEL HARHAI IS LEAD MANAGER OF VALUE EQUITY FUND. MIKE EARNED HIS BA FROM THE
UNIVERSITY OF SOUTH FLORIDA AND HIS MBA FROM THE UNIVERSITY OF CENTRAL FLORIDA.
HE BEGAN HIS CAREER IN 1972, JOINED INVESCO IN 1993, AND BEGAN MANAGING THIS
FUND THE SAME YEAR. HE IS A CHARTERED FINANCIAL ANALYST.
TERRENCE IRRGANG, CFA
TERRENCE IRRGANG IS ASSISTANT MANAGER OF VALUE EQUITY FUND. TERRY RECEIVED HIS
BA FROM GETTYSBURG COLLEGE AND HIS MBA FROM TEMPLE UNIVERSITY. HE BEGAN HIS
INVESTMENT CAREER IN 1981, JOINED INVESCO IN 1992, AND STARTED MANAGING THIS
FUND IN 1993. HE IS A CHARTERED FINANCIAL ANALYST.
<PAGE>
PROFITING FROM TEMPORARY SETBACKS
Of course, investors were also responding to some very real shifts in the
economy away from manufacturing and toward services, communication, and
information technology. While sticking with our fundamental research in
selecting stocks, we have attempted to exploit these changes. Our focus on
growing companies suffering from temporary setbacks proved particularly helpful
in this regard. Oracle, the leading database software company in the world,
rebounded from earlier troubles as investors determined that its software would
fit comfortably into Internet-based systems.
Many of our holdings did not get this second chance, unfortunately. Despite
rising oil prices, for example, fund holding Exxon Mobil has drifted sideways.
Many analysts agree that Exxon Mobil is the best-positioned major oil producer
in the world, with the largest global oil and gas reserves and exploration
capacity. With oil having recently crossed the $30 per barrel mark for the first
time in a decade, Exxon has seen its earnings increase more than expected. But
even earnings coming in above analyst estimates have not been able to provide a
serious catalyst for the stock.
STICKING TO OUR DISCIPLINE
A flip side of this curious market environment for value investors has been that
many such good companies have gone on sale, one might say, while most investors
looked elsewhere. Thus, while our current performance has been disappointing, we
are encouraged by the conditions this may create for our fund. We are unhappy to
value our holdings at these prices, but we are happy to exploit them to add to
our positions.
Should the markets revert to some of their long-term patterns, we may be able to
offer a much more positive report to you in the near future. In the meantime, we
can only assure you of our continuing efforts to stick to our discipline of
finding real value companies for our shareholders.
/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 six-month period ended January 31, 2000, the value of Class I
(Institutional Class) shares rose 5.56%, while the value of Class II shares rose
5.47%. These returns tracked that of the S&P 500 over the same period, which
rose 5.58%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
<PAGE>
INVESCO | SEMIANNUAL REPORT | JANUARY 31, 2000
MOVING FORWARD
- --------------------------------------------------------------------------------
AN INTERVIEW WITH GROWTH TEAM LEADER TIM MILLER.
Tim manages INVESCO Endeavor and Dynamics Fund, and he oversees the Growth Team
that manages the Small Company Growth, Blue Chip Growth, and Growth & Income
Funds.
TIM, IT SEEMS THAT THE TELECOMMUNICATIONS AND TECHNOLOGY SECTORS REALLY HAVE A
CORNER ON THE MARKET LATELY.
TIM MILLER: Well, if that is where people are investing, it's because
that's where much of the infrastructure investment is taking place.
Businesspeople have realized that most things can be done much more efficiently
if information is shared widely and quickly. Competitive advantage in a wide
range of industries is quickly shifting to those companies that manage their
information most effectively. So it may be a narrowly felt trend--showing up
mostly in the technology and telecom sectors--but it is also reflective of a
shift throughout the entire economy.
WITHIN THE BROADLY DEFINED TECHNOLOGY AND TELECOMMUNICATIONS SECTORS, WHAT
INDUSTRIES ARE YOU MOST ENTHUSIASTIC ABOUT?
TM: Semiconductors would certainly be at the heart of both sectors. In a
sense, semiconductors are the fuel for the information age. The
telecommunications sector is especially reliant right now on "high-octane" chips
that run mobile handsets, help direct light through fiber optic networks, and
perform a number of other roles. Other types of telecommunications equipment are
also in high demand. Wireless communication companies are another exciting
industry, especially now that wireless data transfer is beginning to take off.
HOW ABOUT THE INTERNET?
TM: There's no doubt that consumer use of the Internet will continue to grow,
and we have substantial investments in two of the firms that have really proved
their staying power in that arena--Yahoo and America Online. But perhaps more
exciting is businesses' use of the Internet, either to supplement their existing
customer relationships, or to manage the supply channel. This is another area
where business investment is booming. We're particularly enthused about some of
the businesses that provide consulting and software to help companies get
online. The difficulty in finding workers trained in this technology means that
many medium- and small-sized businesses will go outside to find this expertise.
WHAT ARE SOME PROMISING AREAS THAT TECHNOPHOBES CAN UNDERSTAND?
TM: One area we are very excited about is media and advertising, which has
enjoyed a bonanza from all the new Internet and technology firms that are
seeking to establish a consumer presence. Advertisers do very well when the
economy is churning like it is now, with new brands pushing aside the old.
DO YOU HAVE A SENSE THAT THIS "NEW ECONOMY BUILDOUT" HAS A WAY TO GO?
TM: People tend to think that most of it is behind us, but I think that is
far from the truth. I always ask people, "Do you hesitate to use the Internet at
home because it is too slow? Do you wish you could automate more of the
functions at work, but you still find yourself pushing too much paper?" We're
getting a clearer vision of what this future will be like, but few of us live it
on a daily basis. I think we are still very early in the game.
<PAGE>
INVESCO | SEMIANNUAL REPORT | JANUARY 31, 2000
MOVING FORWARD
- --------------------------------------------------------------------------------
MARKET HEADLINES: AUGUST 1999 TO JANUARY 2000
The six months ended in January 2000 continued the "tale of two markets" that
had characterized the investment landscape for the last couple of years. One
market, characterized primarily by fast-growing technology and
telecommunications stocks, continued to rocket ahead, based on investors'
enthusiasm for earnings growth in the "New Economy." Meanwhile, the other
market, dominated by traditional firms, moved sideways as investors fretted
about rising interest rates. Indeed, as the list of favored firms narrowed, some
recent star performers -- particularly the major drug companies -- lagged
seriously as investors became even more selective in looking for high unit
growth rates and expanding markets.
With world growth re-accelerating following the emerging markets crisis of 1998,
inflation again seemed a real threat to the advanced economies. Indeed,
commodity prices surged as worldwide demand picked up. Helped along by OPEC, oil
more than doubled its price of last year. Increasing energy costs helped the
producer price index rise at a roughly 3% annual rate, although consumer price
inflation registered a more modest 2% increase throughout much of the period.
Given the surging economy, however, modest inflationary signs were not enough to
ease Federal Reserve Board worries. Even though many economists had come to
accept that the economy had a higher non- inflationary speed limit than
previously thought -- roughly 3.5% instead of 2.5% -- gross domestic product
growth easily surpassed even this target in both the first and third quarters.
To stave off inflation, the Fed increased short-term interest rates by 0.25% in
August and again in November, which helped drive long-term bond yields to their
highest levels since 1997. In part, the Fed's action worked as intended, as
higher mortgage interest rates caused a slowdown in the red-hot property sector.
If the Fed was intending to puncture some of the "irrational exuberance" in the
stock market, however, it failed resoundingly. Although higher interest rates
should theoretically bring down price-to-earnings ratios, multiples remained
roughly the same as they had been at the end of 1998; as profits increased,
therefore, so did stock prices for many companies. Thus, interest rates and
stock prices headed higher together, baffling many "old paradigm" market
watchers. In fact, as 1999 ended and a new stock market century began,
enthusiasm for technology stocks seemed virtually without bounds. Even a
downturn in the broader market indexes at the end of January did little to slow
down the technology-dominated Nasdaq Index.
Pessimists worried that a dangerous bubble in technology stocks was emerging.
But optimists pointed to the remarkable worldwide demand for technology by
businesses seeking to remain competitive -- not to mention consumers desiring
computers, cell phones, and other trinkets of the digital age. Periods of
economic and technological change like this come along once in a lifetime, they
argued, and the real risk to investors was in not adjusting their portfolios
accordingly.
SINCE THE FUNDS ARE ACTIVELY MANAGED, HOLDINGS WILL CHANGE OVER TIME.
(1) TOTAL RETURN ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS FOR THE PERIODS INDICATED. PAST PERFORMANCE IS NOT A GUARANTEE OF
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT,
WHEN REDEEMED, AN INVESTOR'S SHARES MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED.
(2) THE S&P 500 IS AN UNMANAGED INDEX OF COMMON STOCKS CONSIDERED REPRESENTATIVE
OF THE BROAD U.S. STOCK MARKET, WHILE THE S&P MIDCAP 400 AND RUSSELL 2000 ARE
INDICATIVE OF THE MID- AND SMALL-CAPITALIZATION STOCK MARKETS, RESPECTIVELY.
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
BLUE CHIP GROWTH FUND
Warner-Lambert Co $ 95,478,644
Citigroup Inc 69,583,061
Microsoft Corp 67,696,222
Cisco Systems 66,627,465
Nokia Corp Sponsored ADR Representing Ord Shrs 66,520,500
Dell Computer 61,285,453
Schwab (Charles) Corp 60,819,406
Home Depot 60,474,481
Wal-Mart Stores 56,047,575
General Electric 54,855,804
DYNAMICS FUND
Exodus Communications $ 95,576,000
EchoStar Communications Class A Shrs 81,323,487
Network Appliance 78,963,005
Siebel Systems 72,066,375
Forest Laboratories 69,187,500
Biogen Inc 65,981,250
VeriSign Inc 65,702,500
SDL Inc 64,796,875
Gemstar International Group Ltd 64,782,000
AMFM Inc 62,400,000
INVESCO ENDEAVOR FUND
SAP AG Sponsored ADR Representing 1/12 Ord Shr $ 16,225,169
JDS Uniphase 9,381,125
Nokia Corp Sponsored ADR Representing Ord Shrs 9,314,700
Warner-Lambert Co 8,278,550
Yahoo! Inc 8,012,915
America Online 7,971,250
Citigroup Inc 7,598,407
Goldman Sachs Group 7,330,000
Siebel Systems 6,784,875
AT&T Corp - Liberty Media Group Class A Shrs 6,544,000
<PAGE>
TEN LARGEST COMMON STOCK HOLDING (CONTINUED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
GROWTH & INCOME FUND
Warner-Lambert Co $ 6,470,465
Microsoft Corp 6,062,378
Citigroup Inc 5,881,428
America Online 5,382,871
American International Group 5,347,652
Dell Computer 5,303,693
Wal-Mart Stores 5,046,855
Nokia Corp Sponsored ADR Representing Ord Shrs 5,009,625
Home Depot 4,977,054
Intel Corp 4,785,607
S&P 500 INDEX FUND
Microsoft Corp $ 3,794,614
General Electric 3,287,560
Cisco Systems 2,691,729
Intel Corp 2,488,080
Exxon Mobil 2,165,573
Wal-Mart Stores 1,831,935
International Business Machines 1,523,057
Citigroup Inc 1,457,706
Merck & Co 1,385,051
Lucent Technologies 1,303,845
SMALL COMPANY GROWTH FUND
Pinnacle Holdings $ 12,306,875
IONA Technologies PLC Sponsored ADR Representing
Ord Shrs 11,381,000
Deltathree.com Inc Class A Shrs 10,973,600
ANADIGICS Inc 10,922,862
City National 10,085,152
Emisphere Technologies 10,063,387
Semtech Corp 9,000,000
24/7 Media 8,960,750
REMEC Inc 8,655,866
Insight Enterprises 8,335,200
VALUE EQUITY FUND
Exxon Mobil $ 9,451,365
General Electric 9,229,550
Intel Corp 7,954,575
MCI WorldCom 6,635,672
Bristol-Myers Squibb 6,032,400
Chase Manhattan 5,759,325
American International Group 5,756,134
Ford Motor 5,651,600
MediaOne Group 5,604,750
Merck & Co 5,532,637
Composition of holding is subject to change.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
<S> <C> <C> <C>
BLUE CHIP GROWTH FUND
97.90 COMMON STOCKS
0.70 BANKS
First Security 214,900 $ 5,560,537
Zions Bancorp 99,000 5,853,375
=========================================================================================
11,413,912
1.43 BEVERAGES
Coca-Cola Co 409,000 23,491,937
=========================================================================================
2.38 BIOTECHNOLOGY
Amgen Inc(a) 133,400 8,495,912
Genentech Inc(a) 118,600 16,663,300
MedImmune Inc(a) 94,500 13,797,000
=========================================================================================
38,956,212
2.61 BROADCASTING
Clear Channel Communications(a) 495,285 42,780,242
=========================================================================================
6.54 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
JDS Uniphase(a) 49,200 10,033,725
Nokia Corp Sponsored ADR Representing Ord Shrs 363,500 66,520,500
Nortel Networks 162,500 15,539,063
QUALCOMM Inc(a) 119,700 15,201,900
=========================================================================================
107,295,188
12.90 COMPUTER RELATED
Cisco Systems(a) 608,470 66,627,465
Covad Communications Group(a) 415,200 29,375,400
Dell Computer(a) 1,589,250 61,285,453
EMC Corp(a) 129,500 13,791,750
Redback Networks(a) 136,700 25,451,831
Sun Microsystems(a) 191,600 15,052,575
=========================================================================================
211,584,474
12.30 COMPUTER SOFTWARE & SERVICES
Aspect Development 116,500 7,805,500
go.com(a) 690,000 17,681,250
Intertrust Technologies(a) 5,000 721,875
Intuit Inc(a) 281,500 16,977,969
Microsoft Corp(a) 691,660 67,696,222
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
NetZero Inc(a) 237,400 $ 7,626,475
Oracle Corp(a) 338,300 16,899,142
S1 Corp(a) 123,850 11,216,166
SAP AG Sponsored ADR Representing 1/12 Ord Shr 686,000 44,718,625
Yahoo! Inc(a) 32,000 10,306,000
=========================================================================================
201,649,224
3.34 ELECTRICAL EQUIPMENT
General Electric 411,290 54,855,804
=========================================================================================
8.19 ELECTRONICS -- SEMICONDUCTOR
Intel Corp 485,420 48,026,241
Maxim Integrated Products(a) 963,550 48,297,944
PMC-Sierra Inc(a) 59,500 10,739,750
Texas Instruments 96,500 10,409,938
Xilinx Inc(a) 368,000 16,836,000
=========================================================================================
134,309,873
0.97 ENTERTAINMENT
Gemstar International Group Ltd(a) 239,300 15,883,538
=========================================================================================
4.24 FINANCIAL
Citigroup Inc 1,211,457 69,583,061
=========================================================================================
14.04 HEALTH CARE DRUGS -- PHARMACEUTICALS
Bristol-Myers Squibb 716,430 47,284,380
Forest Laboratories(a) 344,000 23,220,000
Lilly (Eli) & Co 583,080 38,993,475
Merck & Co 319,380 25,171,136
Warner-Lambert Co 1,005,700 95,478,644
=========================================================================================
230,147,635
1.34 HEATLH CARE RELATED
Healtheon/webMD Corp(a) 337,200 21,918,000
=========================================================================================
3.31 INSURANCE
American International Group 520,900 54,238,713
=========================================================================================
3.71 INVESTMENT BANK/BROKER FIRM
Schwab (Charles) Corp 1,686,500 60,819,406
=========================================================================================
1.10 OIL & GAS RELATED
Exxon Mobil 215,900 18,027,650
=========================================================================================
8.88 RETAIL
Amazon.com Inc(a) 450,400 29,078,950
Home Depot 1,067,982 60,474,481
Wal-Mart Stores 1,023,700 56,047,575
=========================================================================================
145,601,006
4.96 SERVICES
America Online(a) 954,980 54,374,174
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Commerce One(a) 90,800 $ 15,640,300
DoubleClick Inc(a) 114,800 11,343,675
=========================================================================================
81,358,149
1.59 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 244,900 26,051,238
=========================================================================================
3.37 TELECOMMUNICATIONS -- LONG DISTANCE
Allegiance Telecom(a) 81,350 8,572,256
AT&T Corp 886,580 46,767,095
=========================================================================================
55,339,351
TOTAL COMMON STOCKS (Cost $1,133,320,555) 1,605,304,613
=========================================================================================
2.10 SHORT-TERM INVESTMENTS
1.83 COMMERCIAL PAPER
1.83 FINANCIAL
American General Finance, 5.811%, 2/1/2000 $30,000,000 30,000,000
=========================================================================================
0.27 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 1/31/2000 due 2/1/2000 at 5.580%,
repurchased at $4,397,682 (Collateralized
by US Treasury Notes, due 9/30/2000 at
4.500%, value $4,488,085) (Cost $4,397,000) $4,397,000 4,397,000
=========================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $34,397,000) 34,397,000
=========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,167,717,555)
(Cost for Income Tax Purposes $1,189,124,437) $ 1,639,701,613
=========================================================================================
DYNAMICS FUND
93.12 COMMON STOCKS
0.26 AEROSPACE & DEFENSE
General Dynamics 283,100 $ 13,341,088
=========================================================================================
0.74 AUTOMOBILES
General Motors Class H Shrs 333,000 37,462,500
=========================================================================================
1.14 BANKS
First Security 295,000 7,633,125
Northern Trust 345,000 20,829,375
Zions Bancorp 497,400 29,408,775
=========================================================================================
57,871,275
4.90 BIOTECHNOLOGY
Biogen Inc(a) 765,000 65,981,250
Chiron Corp(a) 465,000 20,634,375
Human Genome Sciences(a) 184,000 18,032,000
IDEC Pharmaceuticals(a) 178,400 22,511,850
Immunex Corp(a) 350,000 45,762,500
MedImmune Inc(a) 209,700 30,616,200
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Millennium Pharmaceuticals(a) 95,000 $ 17,806,563
Sepracor Inc(a) 200,900 28,126,000
=========================================================================================
249,470,738
4.63 BROADCASTING
AMFM Inc(a) 800,000 62,400,000
Citadel Communications(a) 423,925 21,196,250
EchoStar Communications Class A Shrs(a) 998,600 81,323,487
Entercom Communications(a) 240,000 12,750,000
Hispanic Broadcasting(a) 355,000 36,897,812
Westwood One(a) 350,000 21,306,250
=========================================================================================
235,873,799
2.60 CABLE
Cablevision Systems Class A Shrs(a) 390,000 29,786,250
Jones Intercable Class A Shrs(a) 440,000 27,665,000
NTL Inc(a) 316,250 39,788,203
USA Networks(a) 712,000 35,333,000
=========================================================================================
132,572,453
1.38 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
CIENA Corp(a) 330,000 21,656,250
Comverse Technology(a) 337,500 48,389,062
=========================================================================================
70,045,312
6.22 COMPUTER RELATED
Apple Computer(a) 180,000 18,675,000
Brocade Communications Systems(a) 176,000 28,512,000
Covad Communications Group 430,100 30,429,575
E-Tek Dynamics(a) 187,000 34,034,000
Extreme Networks(a) 400,700 33,909,237
Network Appliance(a) 786,680 78,963,005
Redback Networks(a) 248,000 46,174,500
Visual Networks(a) 292,000 18,359,500
Whittman-Hart Inc(a) 768,950 27,297,725
=========================================================================================
316,354,542
13.34 COMPUTER SOFTWARE & SERVICES
Art Technology Group(a) 313,700 33,722,750
Aspect Development(a) 190,000 12,730,000
BEA Systems(a) 305,000 22,989,375
BroadVision Inc(a) 428,700 54,578,869
Citrix Systems(a) 367,000 50,370,750
Edwards (J D) & Co(a) 365,000 10,881,563
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
E.piphany Inc(a) 39,700 $ 6,272,600
Exodus Communications(a) 832,000 95,576,000
Inktomi Corp(a) 260,000 25,853,750
Internap Network Services(a) 352,200 21,836,400
Intertrust Technologies(a) 35,000 5,053,125
Intuit Inc(a) 679,500 40,982,344
Legato Systems(a) 240,000 6,045,000
Mercury Interactive(a) 418,050 45,724,219
Metromedia Fiber Network A Shrs(a) 440,000 29,782,500
Peregrine Systems(a) 211,000 16,022,813
PSINet Inc(a) 400,000 31,950,000
RealNetworks Inc(a) 85,000 13,360,938
Red Hat(a) 160,000 15,220,000
S1 Corporation(a) 155,000 14,037,188
Siebel Systems(a) 786,000 72,066,375
Symantec Corp(a) 350,000 17,521,875
Verio Inc(a) 200,400 12,900,750
Vignette Corp(a) 122,000 23,790,000
=========================================================================================
679,269,184
2.50 ELECTRICAL EQUIPMENT
Flextronics International Ltd(a) 770,000 38,259,375
Jabil Circuit(a) 180,000 11,385,000
Molex Inc 737,050 37,497,419
Sanmina Corp(a) 375,000 39,843,750
=========================================================================================
126,985,544
0.52 ELECTRONICS
PE Corp-PE Biosystems Group 175,000 26,206,250
=========================================================================================
10.24 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 562,000 36,951,500
Applied Micro Circuits(a) 276,200 40,808,550
Conexant Systems(a) 520,000 43,940,000
Linear Technology 343,000 32,477,812
LSI Logic(a) 520,000 42,510,000
Maxim Integrated Products(a) 940,000 47,117,500
Microchip Technology(a) 301,960 18,985,735
MIPS Technologies Class A Shrs(a) 369,100 16,378,813
PMC-Sierra Inc(a) 342,000 61,731,000
RF Micro Devices(a) 579,500 46,867,062
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
SDL Inc(a) 250,000 $ 64,796,875
Vitesse Semiconductor(a) 644,000 28,014,000
Xilinx Inc(a) 894,000 40,900,500
=========================================================================================
521,479,347
1.56 ENTERTAINMENT
Gemstar International Group Ltd(a) 976,000 64,782,000
International Speedway Class A Shrs 285,000 14,349,966
=========================================================================================
79,131,966
0.96 EQUIPMENT -- SEMICONDUCTOR
KLA-Tencor Corp(a) 404,000 23,684,500
Teradyne Inc(a) 388,800 25,174,800
=========================================================================================
48,859,300
2.27 GAMING
Harrah's Entertainment(a) 2,920,000 58,217,500
Mandalay Resort Group(a) 1,360,000 20,995,000
MGM Grand(a) 881,000 36,451,375
=========================================================================================
115,663,875
2.77 HEALTH CARE DRUGS -- PHARMACEUTICALS
Allergan Inc 963,000 54,891,000
Forest Laboratories(a) 1,025,000 69,187,500
Teva Pharmaceutical Industries Sponsored ADR
Representing Ord Shrs 260,000 17,013,750
=========================================================================================
141,092,250
2.14 HEALTH CARE RELATED
Bausch & Lomb 495,000 30,690,000
Beckman Coulter 300,000 15,693,750
Health Management Associates Class A Shrs(a) 1,250,000 17,421,875
Stryker Corp 490,000 30,870,000
Tenet Healthcare(a) 635,000 14,446,250
=========================================================================================
109,121,875
0.44 INSURANCE
AFLAC Inc 515,000 22,370,313
=========================================================================================
0.93 INVESTMENT BANK/BROKER FIRM
E*TRADE Group(a) 442,000 9,309,625
Waddell & Reed Financial
Class A Shrs 580,500 16,761,938
Class B Shrs 757,000 21,148,688
=========================================================================================
47,220,251
0.34 LEISURE TIME
Royal Caribbean Cruises Ltd 354,000 17,500,875
=========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.49 LODGING -- HOTELS
Marriott International Class A Shrs 805,000 $ 25,005,312
=========================================================================================
0.44 MANUFACTURING
Parker-Hannifin Corp 515,000 22,273,750
=========================================================================================
7.25 OIL & GAS RELATED
Anadarko Petroleum 540,000 17,718,750
Apache Corp 1,074,100 39,204,650
BJ Services(a) 915,000 39,230,625
Burlington Resources 300,000 9,618,750
Coflexip SA Sponsored ADR Representing
1/2 Ord Shr 349,500 14,591,625
Cooper Cameron(a) 860,700 42,604,650
EOG Resources 266,000 4,222,750
Global Industries Ltd(a) 750,000 6,562,500
Nabors Industries(a) 960,000 28,440,000
Noble Drilling(a) 1,050,000 30,778,125
Santa Fe International 982,800 26,289,900
Smith International(a) 753,000 38,638,312
Talisman Energy(a) 850,000 22,896,875
Transocean Sedco Forex 300,000 9,543,750
Weatherford International(a) 1,027,000 38,576,688
=========================================================================================
368,917,950
0.46 PERSONAL CARE
Estee Lauder Class A Shrs(a) 460,000 23,517,500
=========================================================================================
1.68 PUBLISHING
Meredith Corp 470,000 16,450,000
New York Times Class A Shrs 760,000 34,722,500
Valassis Communications(a) 1,014,800 34,503,200
=========================================================================================
85,675,700
0.54 RAILROADS
Kansas City Southern Industries 400,000 27,675,000
=========================================================================================
1.64 RETAIL
AnnTaylor Stores(a) 535,000 11,770,000
Circuit City Stores-Circuit City Group 787,000 30,299,500
Tandy Corp 851,400 41,612,175
=========================================================================================
83,681,675
11.47 SERVICES
BISYS Group(a) 428,400 25,409,475
CMGI Inc(a) 156,000 17,559,750
Comdisco Inc 275,000 9,178,125
Computer Sciences(a) 528,600 48,565,125
Concord EFS(a) 847,050 17,205,703
DoubleClick Inc(a) 198,000 19,564,875
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Fiserv Inc(a) 725,000 $ 24,604,687
Go2Net Inc(a) 375,000 30,187,500
Harte-Hanks Inc 390,000 9,286,875
HotJobs.com Ltd(a) 99,000 2,759,625
Lamar Advertising Class A Shrs(a) 442,900 25,965,012
Omnicom Group 342,000 32,041,125
Paychex Inc 1,027,700 45,283,031
Sapient Corp(a) 165,000 14,581,875
Scient Corp(a) 179,100 13,544,438
SEI Investments 167,800 17,493,150
SunGard Data Systems(a) 585,000 17,111,250
TMP Worldwide(a) 313,100 43,873,137
VeriSign Inc(a) 410,000 65,702,500
VERITAS Software(a) 244,500 35,666,437
Viant Corp(a) 29,600 2,841,600
WPP Group PLC 1,990,000 31,723,688
Young & Rubicam 630,000 33,941,250
=========================================================================================
584,090,233
3.07 TELECOMMUNICATIONS-- CELLULAR & WIRELESS
Crown Castle International(a) 1,038,700 32,848,887
VoiceStream Wireless(a) 424,000 49,767,000
Western Wireless Class A Shrs(a) 574,000 31,283,000
WinStar Communications(a) 600,000 42,487,500
=========================================================================================
156,386,387
1.29 TELECOMMUNICATIONS -- LONG DISTANCE
Allegiance Telecom(a) 401,700 42,329,137
ITC DeltaCom(a) 450,000 13,050,000
Viatel Inc(a) 280,000 10,342,500
=========================================================================================
65,721,637
4.60 TELEPHONE
Amdocs Ltd(a) 1,140,900 60,681,619
AT&T Canada Class B Shrs Depository
Receipts(a) 650,000 33,109,375
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 300,000 57,112,500
McLeodUSA Inc(a) 729,200 50,132,500
RCN Corp(a) 400,000 23,775,000
Rhythms NetConnections(a) 128,300 4,370,219
Time Warner Telecom Class A Shrs(a) 85,600 5,200,200
=========================================================================================
234,381,413
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.31 TEXTILE -- APPAREL MANUFACTURING
Jones Apparel Group(a) 710,000 $ 15,620,000
=========================================================================================
TOTAL COMMON STOCKS ($3,172,877,369) 4,740,839,294
=========================================================================================
6.88 SHORT-TERM INVESTMENTS
6.86 COMMERCIAL PAPER
0.88 BANKS
State Street, 5.506%, 2/3/2000 $45,000,000 44,986,239
=========================================================================================
3.05 CONSUMER FINANCE
American Express Credit, 5.587%, 2/4/2000 $45,000,000 45,000,000
Sears Roebuck Acceptance
5.807%, 2/7/2000 $60,000,000 60,000,000
5.556%, 2/2/2000 $50,000,000 50,000,000
=========================================================================================
155,000,000
0.89 INSURANCE
Prudential Funding, 5.576%, 2/4/2000 $45,027,000 45,027,000
=========================================================================================
0.88 INVESTMENT BANK/BROKER FIRM
Merrill Lynch & Co, 5.530%, 2/1/2000 $45,000,000 45,000,000
=========================================================================================
0.49 MACHINERY
Deere & Co, 5.851%, 2/1/2000 $25,000,000 25,000,000
=========================================================================================
0.67 OIL & GAS RELATED
Texaco Inc, 5.507%, 2/3/2000 $34,300,000 34,300,000
=========================================================================================
TOTAL COMMERCIAL PAPER (Cost $349,313,239) 349,313,239
=========================================================================================
0.02 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 1/31/2000 due 2/1/2000 at 5.580%,
repurchased at $1,179,183 (Collateralized
by US Treasury Notes, due 9/30/2000
at 4.500%, value $1,204,855) (Cost
$1,179,000) $ 1,179,000 1,179,000
=========================================================================================
TOTAL SHORT-TERM INVESTMENTS
(Amortized Cost $350,492,239) 350,492,239
=========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $3,523,369,608)
(Cost for Income Tax Purposes $3,540,493,423) $ 5,091,331,533
=========================================================================================
INVESCO ENDEAVOR FUND
95.47 COMMON STOCKS
1.54 BANKS
Firstar Corp 200,000 $ 4,775,000
=========================================================================================
0.94 BIOTECHNOLOGY
MedImmune Inc(a) 20,000 2,920,000
=========================================================================================
5.05 BROADCASTING
AMFM Inc(a) 41,700 3,252,600
AT&T Corp - Liberty Media Group Class A Shrs(a) 128,000 6,544,000
Clear Channel Communications(a) 15,000 1,295,625
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Grupo Televisa SA de CV Sponsored GDR
Representing 2 Ord Participation
Certificates(a) 38,000 $ 2,109,000
TV Guide Class A Shrs(a) 66,000 2,446,125
=========================================================================================
15,647,350
11.50 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Comverse Technology(a) 36,510 5,234,621
Digital Microwave(a) 76,600 2,451,200
Gilat Satellite Networks Ltd(a) 31,000 3,309,250
JDS Uniphase(a) 46,000 9,381,125
Nokia Corp Sponsored ADR Representing Ord Shrs 50,900 9,314,700
Nortel Networks 62,200 5,947,875
=========================================================================================
35,638,771
10.02 COMPUTER RELATED
Cisco Systems(a) 58,300 6,383,850
Cobalt Networks(a) 9,500 745,750
Dell Computer(a) 164,000 6,324,250
JNI Corp(a) 41,000 2,434,375
Juniper Networks(a) 15,000 2,029,687
Redback Networks(a) 23,800 4,431,263
3Com Corp(a) 123,000 6,242,250
Visual Networks(a) 39,000 2,452,125
=========================================================================================
31,043,550
18.72 COMPUTER SOFTWARE & SERVICES
eGain Communications(a) 60,000 2,077,500
Exodus Communications(a) 46,000 5,284,250
go.com(a) 100,000 2,562,500
Mercury Interactive(a) 27,900 3,051,562
NetZero Inc(a) 75,000 2,409,375
Oracle Corp(a) 50,000 2,497,656
SAP AG Sponsored ADR Representing 1/12 Ord Shr 248,900 16,225,169
Siebel Systems(a) 74,000 6,784,875
SilverStream Software(a) 43,800 4,872,750
Symantec Corp(a) 85,000 4,255,313
Yahoo! Inc(a) 24,880 8,012,915
=========================================================================================
58,033,865
1.53 ELECTRICAL EQUIPMENT
General Electric 35,635 4,752,818
=========================================================================================
7.91 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 44,260 2,910,095
Applied Micro Circuits(a) 26,500 3,915,375
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
LSI Logic(a) 33,000 $ 2,697,750
Maxim Integrated Products(a) 107,000 5,363,375
PMC-Sierra Inc(a) 25,000 4,512,500
Xilinx Inc(a) 112,000 5,124,000
=========================================================================================
24,523,095
3.27 ENTERTAINMENT
Gemstar International Group Ltd(a) 48,000 3,186,000
Time Warner 38,300 3,061,606
Viacom Inc Class B Shrs(a) 70,000 3,876,250
=========================================================================================
10,123,856
1.21 EQUIPMENT -- SEMICONDUCTOR
Lam Research(a) 30,000 3,746,250
=========================================================================================
2.45 FINANCIAL
Citigroup Inc 132,290 7,598,407
=========================================================================================
0.74 FOOTWEAR
NIKE Inc Class B Shrs 50,500 2,297,750
=========================================================================================
1.20 GAMING
Harrah's Entertainment(a) 120,000 2,392,500
Park Place Entertainment(a) 125,000 1,312,500
=========================================================================================
3,705,000
2.67 HEALTH CARE DRUGS -- PHARMACEUTICALS
Warner-Lambert Co 87,200 8,278,550
=========================================================================================
1.05 HEALTH CARE RELATED
Healtheon/WebMD Corp(a) 50,000 3,250,000
=========================================================================================
4.36 INVESTMENT BANK/BROKER FIRM
Goldman Sachs Group 80,000 7,330,000
Schwab (Charles) Corp 171,000 6,166,688
=========================================================================================
13,496,688
4.21 OIL & GAS RELATED
Atwood Oceanics(a) 110,300 4,501,619
Evergreen Resources(a) 10,000 222,812
Grey Wolf(a) 250,000 750,000
Nabors Industries(a) 134,500 3,984,562
Smith International(a) 70,000 3,591,875
=========================================================================================
13,050,868
3.79 RETAIL
Amazon.com Inc(a) 34,800 2,246,775
eBay Inc(a) 11,800 1,770,737
Home Depot 68,700 3,890,137
Pacific Sunwear of California(a) 33,000 969,375
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Tandy Corp 59,000 $ 2,883,625
=========================================================================================
11,760,649
5.90 SERVICES
America Online(a) 140,000 7,971,250
Commerce One(a) 10,000 1,722,500
DoubleClick Inc(a) 20,000 1,976,250
HotJobs.com Ltd(a) 67,000 1,867,625
VeriSign Inc(a) 29,600 4,743,400
=========================================================================================
18,281,025
2.26 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 40,000 4,255,000
Pinnacle Holdings(a) 65,000 2,758,438
=========================================================================================
7,013,438
1.39 TELECOMMUNICATIONS -- LONG DISTANCE
FirstCom Corp(a) 85,000 2,289,688
Viatel Inc(a) 55,000 2,031,563
=========================================================================================
4,321,251
3.76 TELEPHONE
Amdocs Ltd(a) 70,000 3,723,125
AT&T Canada Class B Shrs Depository Receipts(a) 50,400 2,567,250
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) 16,600 3,160,225
Communications Group(a) 31,000 2,193,250
=========================================================================================
11,643,850
TOTAL COMMON STOCKS (Cost $216,378,688) 295,902,031
=========================================================================================
4.53 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated
1/31/2000 due 2/1/2000 at 5.580%, repurchased
at $14,031,175 (Collateralized by US Treasury
Notes due 9/30/2000 at 4.500%, value
$14,317,695) (Cost $14,029,000) $14,029,000 14,029,000
=========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $230,407,688)
(Cost for Income Tax Purposes $230,945,269) $ 309,931,031
=========================================================================================
GROWTH & INCOME FUND
97.58 COMMON STOCK
0.78 ALUMINUM
Alcoa Inc 18,100 $ 1,261,344
=========================================================================================
3.72 BANKS
First Security 21,300 551,137
Firstar Corp 101,380 2,420,447
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Zions Bancorp 52,300 $ 3,092,238
=========================================================================================
6,063,822
1.43 BEVERAGES
Coca-Cola Co 40,465 2,324,208
=========================================================================================
2.35 BIOTECHNOLOGY
Amgen Inc(a) 13,200 840,675
Genentech Inc(a) 11,700 1,643,850
MedImmune Inc(a) 9,200 1,343,200
=========================================================================================
3,827,725
2.30 BROADCASTING
AT&T Corp - Liberty Media Group Class A Shrs(a) 31,400 1,605,325
Infinity Broadcasting Class A Shrs(a) 65,955 2,143,537
=========================================================================================
3,748,862
6.44 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
JDS Uniphase(a) 4,900 999,294
Motorola Inc 10,100 1,381,175
Nokia Corp Sponsored ADR Representing Ord Shrs 27,375 5,009,625
Nortel Networks 16,100 1,539,563
QUALCOMM Inc(a) 12,300 1,562,100
=========================================================================================
10,491,757
11.26 COMPUTER RELATED
Cisco Systems(a) 31,210 3,417,495
Covad Communications Group 13,400 948,050
Dell Computer(a) 137,535 5,303,693
EMC Corp(a) 14,830 1,579,395
International Business Machines 26,545 2,978,017
Redback Networks(a) 13,500 2,513,531
SkillSoft Corp(a) 7,500 105,000
Sun Microsystems(a) 19,000 1,492,688
=========================================================================================
18,337,869
10.41 COMPUTER SOFTWARE & SERVICES
Aspect Development(a) 11,300 757,100
go.com(a) 69,000 1,768,125
Intuit Inc(a) 27,900 1,682,719
Microsoft Corp(a) 61,940 6,062,378
NetZero Inc(a) 23,600 758,150
Oracle Corp(a) 33,500 1,673,430
SAP AG Sponsored ADR Representing 1/12 Ord Shr 65,400 4,263,263
=========================================================================================
16,965,165
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
2.63 ELECTRICAL EQUIPMENT
General Electric 32,150 $ 4,288,006
=========================================================================================
6.33 ELECTRONICS -- SEMICONDUCTOR
Intel Corp 48,370 4,785,607
PMC-Sierra Inc(a) 5,900 1,064,950
Texas Instruments 25,850 2,788,569
Xilinx Inc(a) 36,400 1,665,300
=========================================================================================
10,304,426
1.72 ENTERTAINMENT
Gemstar International Group Ltd(a) 23,800 1,579,725
Time Warner 15,320 1,224,643
=========================================================================================
2,804,368
5.41 FINANCIAL
American Express 6,555 1,080,346
Citigroup Inc 102,397 5,881,428
Fannie Mae 30,805 1,846,375
=========================================================================================
8,808,149
1.84 GAMING
Harrah's Entertainment(a) 150,620 3,002,986
=========================================================================================
12.28 HEALTH CARE DRUGS -- PHARMACEUTICALS
Bristol-Myers Squibb 70,655 4,663,230
Forest Laboratories(a) 35,200 2,376,000
Johnson & Johnson 31,205 2,685,580
Lilly (Eli) & Co 25,935 1,734,403
Merck & Co 26,360 2,077,497
Warner-Lambert Co 68,155 6,470,465
=========================================================================================
20,007,175
1.33 HEALTH CARE RELATED
Healtheon/WebMD Corp(a) 33,300 2,164,500
=========================================================================================
3.28 INSURANCE
American International Group 51,358 5,347,652
=========================================================================================
0.49 MACHINERY
Deere & Co 18,400 803,850
=========================================================================================
0.64 MANUFACTURING
Corning Inc 6,800 1,048,900
=========================================================================================
0.89 NATURAL GAS
Enron Corp 21,355 1,440,128
=========================================================================================
2.85 OIL & GAS RELATED
Chevron Corp 14,990 1,252,602
Exxon Mobil 40,655 3,394,692
=========================================================================================
4,647,294
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.67 PAPER & FOREST PRODUCTS
Champion International 18,645 $ 1,090,732
=========================================================================================
1.04 PERSONAL CARE
Gillette Co 45,165 1,699,333
=========================================================================================
7.92 RETAIL
Amazon.com Inc(a) 44,700 2,885,944
Home Depot 87,895 4,977,054
Wal-Mart Stores 92,180 5,046,855
=========================================================================================
12,909,853
4.00 SERVICES
America Online(a) 94,540 5,382,871
DoubleClick Inc(a) 11,400 1,126,462
=========================================================================================
6,509,333
0.33 SHIPPING
United Parcel Service Class B Shrs 8,900 529,550
=========================================================================================
1.55 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 23,700 2,521,088
=========================================================================================
2.76 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 85,217 4,495,197
=========================================================================================
0.93 TELEPHONE
BellSouth Corp 16,930 796,768
SBC Communications 16,765 722,991
=========================================================================================
1,519,759
TOTAL COMMON STOCKS (Cost $135,939,119) 158,963,031
=========================================================================================
0.25 FIXED INCOME SECURITIES
0.25 CORPORATE BONDS
0.25 PUBLISHING
Tribune Co, Exch Sub Deb, PHONES(b)
3.140%, 5/15/2029 (Cost $533,798) $ 340,000 408,000
=========================================================================================
2.17 SHORT-TERM INVESTMENTS -- COMMERCIAL PAPER
2.17 CONSUMER FINANCE
Household Finance, 5.811%, 2/1/2000
(Cost $3,540,000) $ 3,540,000 3,540,000
=========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $140,012,917)
(Cost for Income Tax Purposes $140,725,079) $ 162,911,031
=========================================================================================
S&P 500 INDEX FUND
97.72 COMMON STOCKS
1.13 AEROSPACE & DEFENSE
Boeing Co 7,056 $ 312,669
General Dynamics 1,534 72,290
Goodrich (B F) Co 710 17,750
Honeywell International 5,936 284,928
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Lockheed Martin 2,856 $ 53,550
Northrop Grumman 518 26,030
Raytheon Co Class B Shrs 2,447 55,822
United Technologies 3,606 190,893
=========================================================================================
1,013,932
0.10 AIR FREIGHT
FedEx Corp(a) 2,232 88,303
=========================================================================================
0.19 AIRLINES
AMR Corp(a) 1,020 54,889
Delta Air Lines 998 46,220
Southwest Airlines 3,644 58,076
US Airways Group(a) 513 11,318
=========================================================================================
170,503
0.24 ALUMINUM
Alcoa Inc 2,726 189,968
Reynolds Metals 400 26,700
=========================================================================================
216,668
0.23 AUTO PARTS
AutoZone Inc(a) 1,021 26,801
Cooper Tire & Rubber 511 6,675
Cummins Engine 300 11,475
Dana Corp 1,107 26,014
Genuine Parts 1,325 31,966
Goodyear Tire & Rubber 1,103 26,196
Johnson Controls 612 33,813
Pep Boys-Manny Moe & Jack 400 2,900
TRW Inc 817 35,795
=========================================================================================
201,635
1.07 AUTOMOBILES
Ford Motor 9,088 452,128
General Motors 4,864 391,248
Harley-Davidson Inc 1,100 77,206
Navistar International(a) 400 15,725
PACCAR Inc 500 20,719
=========================================================================================
957,026
4.92 BANKS
AmSouth Bancorp 2,950 51,441
Bank of America 12,789 619,467
Bank of New York 5,494 223,194
Bank One 8,643 257,669
BB&T Corp 2,580 72,562
Chase Manhattan 6,154 495,012
Comerica Inc 1,103 48,739
Fifth Third Bancorp 2,333 154,853
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
First Union 7,422 $ 249,101
Firstar Corp 7,391 176,460
FleetBoston Financial 6,878 216,227
Huntington Bancshares 1,674 36,096
KeyCorp 3,388 71,148
Mellon Financial 3,834 131,554
Morgan (J P) & Co 1,217 149,463
National City 4,680 101,205
Northern Trust 1,600 96,600
Old Kent Financial 800 25,850
PNC Bank 2,100 100,800
Regions Financial 1,500 36,375
Southtrust Corp 1,300 39,569
State Street 1,106 88,687
Summit Bancorp 1,200 35,925
SunTrust Banks 2,338 139,257
Synovus Financial 2,086 39,634
Union Planters 1,000 33,688
US Bancorp 5,483 121,654
Wachovia Corp 1,534 98,272
Wells Fargo 12,366 494,640
=========================================================================================
4,405,142
2.01 BEVERAGES
Anheuser-Busch Cos 3,522 237,735
Brown-Forman Corp Class B Shrs 500 27,969
Coca-Cola Co 18,624 1,069,716
Coca-Cola Enterprises 3,100 78,275
Coors (Adolph) Co Class B Shrs 200 9,700
PepsiCo Inc 10,996 375,239
=========================================================================================
1,798,634
0.63 BIOTECHNOLOGY
Amgen Inc(a) 7,348 467,976
Biogen Inc(a) 1,100 94,875
=========================================================================================
562,851
0.62 BROADCASTING
CBS Corp(a) 5,767 336,288
Clear Channel Communications(a) 2,528 218,356
=========================================================================================
554,644
0.29 BUILDING MATERIALS
Armstrong World Industries 300 6,862
Crane Co 450 8,803
Lowe's Cos 2,830 126,289
Masco Corp 3,216 64,119
Owens Corning 400 6,425
Sherwin-Williams Co 1,124 19,811
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Vulcan Materials 700 $ 29,619
=========================================================================================
261,928
0.74 CABLE
Comcast Corp Class A Shrs 6,498 298,908
MediaOne Group(a) 4,585 364,507
=========================================================================================
663,415
1.20 CHEMICALS
Air Products & Chemicals 1,744 51,666
Dow Chemical 1,649 192,108
du Pont (E I) de Nemours 8,722 514,598
Eastman Chemical 511 20,376
Englehard Corp 820 13,069
Grace (W R) & Co 520 6,142
Great Lakes Chemical 400 13,250
Hercules Inc 713 12,210
PPG Industries 1,217 67,011
Praxair Inc 1,122 45,511
Rohm & Haas 1,576 66,586
Sigma-Aldrich Corp 714 23,919
Union Carbide 917 51,352
=========================================================================================
1,077,798
4.47 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 1,100 72,531
Advanced Micro Devices(a) 1,020 36,975
Andrew Corp(a) 513 11,799
Comverse Technology(a) 400 57,350
Lucent Technologies 23,599 1,303,845
Motorola Inc 5,336 729,698
Nortel Networks 10,044 960,458
QUALCOMM Inc(a) 5,000 635,000
Scientific-Atlanta Inc 511 39,379
Tellabs Inc(a) 2,938 158,652
=========================================================================================
4,005,687
9.80 COMPUTER RELATED
Adaptec Inc(a) 700 36,662
Apple Computer(a) 1,218 126,367
Cabletron Systems(a) 1,222 31,390
Cisco Systems(a) 24,582 2,691,729
Compaq Computer 12,785 349,989
Dell Computer(a) 19,112 737,006
EMC Corp(a) 7,652 814,938
Gateway Inc(a) 2,300 140,731
Hewlett-Packard Co 7,683 831,685
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
International Business Machines 13,576 $ 1,523,057
Lexmark International Group Class A Shrs(a) 900 84,825
NCR Corp(a) 700 26,950
Network Appliance(a) 1,000 100,375
Novell Inc(a) 2,549 85,073
Seagate Technology(a) 1,534 61,456
Silicon Graphics(a) 1,426 13,814
Sun Microsystems(a) 11,708 919,810
3Com Corp(a) 2,448 124,236
Unisys Corp(a) 2,325 74,109
=========================================================================================
8,774,202
6.85 COMPUTER SOFTWARE & SERVICES
Adobe Systems 820 45,151
Autodesk Inc 400 12,225
BMC Software(a) 1,800 68,175
Citrix Systems(a) 600 82,350
Computer Associates International 4,076 279,970
Compuware Corp(a) 2,600 55,087
Microsoft Corp(a) 38,770 3,794,614
Oracle Corp(a) 21,432 1,070,595
Parametric Technology(a) 1,936 41,503
Peoplesoft Inc(a) 1,947 43,808
Yahoo! Inc(a) 2,000 644,125
=========================================================================================
6,137,603
0.45 CONGLOMERATES
Fortune Brands 1,124 32,596
Monsanto Co 4,789 169,112
National Service Industries 300 7,463
Unilever NV New York Registered Shrs 4,153 192,076
=========================================================================================
401,247
0.21 CONSUMER FINANCE
Countrywide Credit Industries 815 21,190
Household International 3,552 125,208
SLM Holding 1,100 42,831
=========================================================================================
189,229
0.01 CONSUMER-- JEWELRY, NOVELTIES & GIFTS
Jostens Inc 200 4,687
=========================================================================================
0.13 CONTAINERS
Ball Corp 200 7,275
Bemis Co 400 12,625
Crown Cork & Seal 818 16,616
Owens-Illinois Inc(a) 1,020 18,679
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Sealed Air(a) 519 $ 29,129
Temple-Inland Inc 400 22,375
Tupperware Corp 400 6,525
=========================================================================================
113,224
0.03 DISTRIBUTION
Pactiv Corp(a) 1,324 12,247
SUPERVALU Inc 900 16,200
=========================================================================================
28,447
1.73 ELECTRIC UTILITIES
AES Corp(a) 1,600 128,200
Ameren Corp 914 29,762
American Electric Power 1,325 44,387
Carolina Power & Light 1,121 36,152
Central & South West 1,630 32,906
CINergy Corp 1,122 27,910
CMS Energy 800 24,000
Consolidated Edison 1,654 54,065
Constellation Energy Group 1,021 30,758
Dominion Resources 2,071 86,464
DTE Energy 1,020 35,445
Duke Energy 2,636 152,229
Edison International 2,653 76,937
Entergy Corp 1,834 45,735
FirstEnergy Corp 1,732 39,403
Florida Progress 700 29,662
FPL Group 1,219 51,427
GPU Inc 817 23,693
New Century Energies 800 23,150
Niagara Mohawk Holdings(a) 1,320 16,583
Northern States Power 1,200 23,100
PECO Energy 1,431 59,565
PG&E Corp 2,761 60,569
Pinnacle West Capital 600 18,525
PP&L Resources 1,023 23,721
Public Service Enterprise Group 1,632 56,100
Reliant Energy 2,240 51,100
Southern Co 5,096 130,585
Texas Utilities 2,062 72,943
Unicom Corp 1,630 63,774
=========================================================================================
1,548,850
4.23 ELECTRICAL EQUIPMENT
Emerson Electric 3,291 181,211
General Electric 24,649 3,287,560
Grainger (W W) Inc 626 30,009
Molex Inc 1,100 55,962
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Rockwell International 1,337 $ 66,098
Solectron Corp(a) 2,100 152,513
Thomas & Betts 400 12,175
=========================================================================================
3,785,528
0.15 ELECTRONICS
PE Corp-PE Biosystems Group 700 104,825
PerkinElmer Inc 300 15,019
Tektronix Inc 300 12,169
Teledyne Technologies(a) 189 1,748
=========================================================================================
133,761
4.20 ELECTRONICS -- SEMICONDUCTOR
Analog Devices(a) 1,200 112,200
Conexant Systems(a) 1,500 126,750
Intel Corp 25,148 2,488,080
LSI Logic(a) 1,020 83,385
Micron Technology(a) 1,930 120,022
National Semiconductor(a) 1,323 69,458
Texas Instruments 6,012 648,545
Xilinx Inc(a) 2,400 109,800
=========================================================================================
3,758,240
0.03 ENGINEERING & CONSTRUCTION
Fluor Corp 512 20,448
McDermott International 400 3,950
=========================================================================================
24,398
2.02 ENTERTAINMENT
Disney (Walt) Co 15,529 563,897
Seagram Co Ltd 3,150 182,897
Time Warner 9,636 770,278
Viacom Inc Class B Shrs(a) 5,198 287,839
=========================================================================================
1,804,911
0.59 EQUIPMENT -- SEMICONDUCTOR
Applied Materials(a) 2,751 377,575
KLA-Tencor Corp(a) 1,224 71,757
Teradyne Inc(a) 1,200 77,700
=========================================================================================
527,032
3.63 FINANCIAL
American Express 3,405 561,187
Associates First Capital Class A Shrs 5,432 108,640
Capital One Financial 1,500 61,500
Citigroup Inc 25,379 1,457,706
Fannie Mae 7,697 461,339
Franklin Resources 1,900 67,806
Freddie Mac 5,256 263,785
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
MBIA Inc 712 $ 35,644
MBNA Corp 6,043 152,586
Providian Financial 919 77,541
=========================================================================================
3,247,734
1.15 FOODS
Archer-Daniels-Midland Co 4,618 54,261
Bestfoods Inc 2,088 90,828
Campbell Soup 3,100 97,456
ConAgra Inc 3,566 76,223
General Mills 2,208 68,862
Heinz (H J) Co 2,741 101,931
Hershey Foods 994 42,245
Kellogg Co 3,070 74,447
Nabisco Group Holdings 2,500 21,563
Quaker Oats 919 54,566
Ralston Purina Group 2,410 67,631
Sara Lee 6,830 125,928
Sysco Corp 2,524 89,760
Wrigley (William) Jr Co 776 60,528
=========================================================================================
1,026,229
0.11 FOOTWEAR
NIKE Inc Class B Shrs 2,091 95,141
Reebok International Ltd(a) 400 2,950
=========================================================================================
98,091
0.04 GAMING
Harrah's Entertainment(a) 914 18,223
Mirage Resorts(a) 1,325 16,562
=========================================================================================
34,785
0.14 GOLD & PRECIOUS METALS MINING
Barrick Gold 2,852 46,702
Freeport-McMoran Copper & Gold Class B Shrs(a) 1,127 19,652
Homestake Mining 1,920 12,720
Newmont Mining 1,122 22,861
Placer Dome 2,433 21,897
=========================================================================================
123,832
0.03 HARDWARE & TOOLS
Snap-On Inc 400 10,750
Stanley Works 612 15,377
=========================================================================================
26,127
7.95 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 11,604 378,580
Allergan Inc 1,000 57,000
ALZA Corp(a) 692 24,696
American Home Products 9,854 463,754
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Bristol-Myers Squibb 14,906 $ 983,796
Johnson & Johnson 10,483 902,193
Lilly (Eli) & Co 8,228 550,248
Longs Drug Stores 300 6,450
Merck & Co 17,574 1,385,051
Pfizer Inc 29,147 1,060,222
Pharmacia & Upjohn 3,933 184,851
Schering-Plough Corp 11,062 486,728
Warner-Lambert Co 6,437 611,113
Watson Pharmaceuticals(a) 600 24,188
=========================================================================================
7,118,870
1.49 HEALTH CARE RELATED
Bard (C R) Inc 300 13,425
Bausch & Lomb 400 24,800
Baxter International 2,184 139,503
Becton Dickinson & Co 1,734 45,409
Biomet Inc 716 28,506
Boston Scientific(a) 3,156 65,487
Cardinal Health 2,019 96,533
Columbia/HCA Healthcare 4,090 111,708
Guidant Corp(a) 2,294 120,722
HEALTHSOUTH Corp(a) 2,855 15,702
Humana Inc(a) 1,123 8,984
Mallinckrodt Inc 410 11,813
Manor Care(a) 700 9,319
McKesson HBOC 2,086 42,893
Medtronic Inc 9,016 412,482
Quintiles Transnational(a) 800 21,150
Shared Medical Systems 200 8,850
St Jude Medical(a) 613 15,210
Tenet Healthcare(a) 2,300 52,325
United Healthcare 1,224 64,872
Wellpoint Health Networks(a) 400 27,200
=========================================================================================
1,336,893
0.02 HOMEBUILDING
Centex Corp 400 8,800
Kaufman & Broad Home 300 6,506
Pulte Corp 300 5,231
=========================================================================================
20,537
0.09 HOUSEHOLD FURNITURE & APPLIANCES
Leggett & Platt 1,500 27,000
Maytag Corp 613 24,826
Whirlpool Corp 500 29,125
=========================================================================================
80,951
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.59 HOUSEHOLD PRODUCTS
Black & Decker 613 $ 24,558
Clorox Co 1,636 78,119
Colgate-Palmolive Co 4,388 259,989
Newell Rubbermaid 2,053 61,590
Procter & Gamble 9,882 996,847
=========================================================================================
1,421,103
2.58 INSURANCE
Aetna Inc 998 53,143
AFLAC Inc 2,000 86,875
Allstate Corp 6,064 140,609
American General 1,860 114,274
American International Group 11,670 1,215,139
Aon Corp 1,915 49,551
Chubb Corp 1,359 76,444
CIGNA Corp 1,347 96,647
Cincinnati Financial 1,145 32,919
Conseco Inc 2,441 37,225
Hartford Financial Services Group 1,556 59,322
Jefferson-Pilot Corp 715 42,006
Lincoln National 1,334 49,275
Loews Corp 776 43,456
MGIC Investment 775 36,086
Progressive Corp 519 32,308
SAFECO Corp 920 22,540
St Paul Cos 1,732 52,285
Torchmark Corp 920 23,173
UnumProvident Corp 1,830 48,953
=========================================================================================
2,312,230
0.21 INSURANCE BROKERS
Marsh & McLennan 1,968 184,992
=========================================================================================
1.32 INVESTMENT BANK/BROKER FIRM
Bear Stearns 850 35,062
Lehman Brothers Holdings 800 57,200
Merrill Lynch & Co 2,819 244,548
Morgan Stanley Dean Witter & Co 8,378 555,043
Paine Webber Group 1,000 38,438
Price (T Rowe) Associates 800 31,100
Schwab (Charles) Corp 6,122 220,775
=========================================================================================
1,182,166
0.08 IRON & STEEL
Allegheny Technologies 662 13,819
Bethlehem Steel(a) 916 6,240
Nucor Corp 612 30,447
USX-US Steel Group 612 15,224
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Worthington Industries 614 $ 8,865
=========================================================================================
74,595
0.24 LEISURE TIME
Brunswick Corp 614 11,628
Carnival Corp 4,600 207,287
=========================================================================================
218,915
0.09 LODGING -- HOTELS
Hilton Hotels 2,735 23,077
Marriott International Class A Shrs 1,868 58,025
=========================================================================================
81,102
0.44 MACHINERY
Briggs & Stratton 200 8,875
Caterpillar Inc 2,644 112,205
Cooper Industries 617 23,677
Danaher Corp 1,000 43,125
Deere & Co 1,766 77,152
Dover Corp 1,446 58,292
Ingersoll-Rand Co 1,123 52,851
Milacron Inc 300 3,619
NACCO Industries Class A Shrs 100 5,075
Timken Co 400 6,525
=========================================================================================
391,396
1.63 MANUFACTURING
Corning Inc 1,852 285,671
Eaton Corp 511 36,505
FMC Corp(a) 200 10,750
Illinois Tool Works 2,187 127,939
ITT Industries 617 19,513
Millipore Corp 300 12,844
Minnesota Mining & Manufacturing 3,068 287,242
Oak Industries(a) 100 12,803
Pall Corp 818 15,082
Parker-Hannifin Corp 716 30,967
Textron Inc 1,008 60,165
Thermo Electron(a) 1,121 19,407
Tyco International Ltd 12,566 537,197
=========================================================================================
1,456,085
0.13 METALS MINING
Alcan Aluminium Ltd 1,532 59,844
Inco Ltd(a) 1,323 25,137
Phelps Dodge 579 33,654
=========================================================================================
118,635
0.79 NATURAL GAS
Coastal Corp 1,630 60,106
Columbia Energy Group 550 35,750
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Eastern Enterprises 200 $ 11,437
El Paso Energy 1,612 51,987
Enron Corp 5,418 365,376
NICOR Inc 300 10,275
ONEOK Inc 200 5,225
Peoples Energy 200 6,250
Sempra Energy 1,818 33,747
Williams Cos 3,310 128,263
=========================================================================================
708,416
0.42 OFFICE EQUIPMENT & SUPPLIES
Avery Dennison 814 55,148
IKON Office Solutions 1,019 8,216
Office Depot(a) 2,500 25,156
Pitney Bowes 1,990 97,510
Staples Inc(a) 3,500 83,344
Xerox Corp 5,028 104,960
=========================================================================================
374,334
5.55 OIL & GAS RELATED
Amerada Hess 613 32,604
Anadarko Petroleum 900 29,531
Apache Corp 813 29,674
Ashland Inc 500 16,281
Atlantic Richfield 2,411 185,647
Baker Hughes 2,394 58,952
Burlington Resources 1,825 58,514
Chevron Corp 4,931 412,047
Conoco Inc Class B Shrs 4,695 110,626
Exxon Mobil 25,935 2,165,573
Halliburton Co 3,196 115,056
Kerr-McGee Corp 616 34,111
Occidental Petroleum 2,647 52,609
Phillips Petroleum 1,873 76,559
Rowan Cos(a) 612 13,885
Royal Dutch Petroleum New York Registry
1.25 Gldr Shrs 16,108 886,947
Schlumberger Ltd 4,125 251,883
Sunoco Inc 600 13,838
Texaco Inc 4,177 220,859
Tosco Corp 1,000 25,688
Transocean Sedco Forex 1,440 45,810
Union Pacific Resources Group 1,935 21,285
Unocal Corp 1,862 53,300
USX-Marathon Group 2,289 58,799
=========================================================================================
4,970,078
0.82 PAPER & FOREST PRODUCTS
Boise Cascade 400 14,150
Champion International 613 35,860
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Fort James 1,537 $ 41,115
Georgia-Pacific Corp 1,326 54,034
International Paper 2,992 142,494
Kimberly-Clark Corp 4,076 252,457
Louisiana-Pacific Corp 715 9,206
Mead Corp 715 26,634
Potlatch Corp 200 8,050
Westvaco Corp 714 19,590
Weyerhaeuser Co 1,731 99,316
Willamette Industries 716 29,356
========================================================================================
732,262
0.44 PERSONAL CARE
Alberto-Culver Co Class B Shrs 400 9,825
Avon Products 1,774 56,435
Gillette Co 8,036 302,354
International Flavors & Fragrances 715 25,517
========================================================================================
394,131
0.17 PHOTOGRAPHY & IMAGING
Eastman Kodak 2,313 143,117
Polaroid Corp 300 7,125
========================================================================================
150,242
0.10 POLLUTION CONTROL
Allied Waste Industries(a) 1,300 8,369
Waste Management 4,653 81,428
========================================================================================
89,797
0.56 PUBLISHING
American Greetings Class A Shrs 410 9,071
Donnelley (R R) & Sons 820 17,989
Dow Jones & Co 613 38,006
Gannett Co 2,086 144,977
Harcourt General 510 20,400
Knight-Ridder Inc 512 27,296
McGraw-Hill Cos 1,328 74,451
Meredith Corp 400 14,000
New York Times Class A Shrs 1,226 56,013
Times Mirror Series A Shrs 413 24,444
Tribune Co 1,834 77,372
========================================================================================
504,019
0.33 RAILROADS
Burlington Northern Santa Fe 3,309 79,623
CSX Corp 1,643 48,058
Kansas City Southern Industries 700 48,431
Norfolk Southern 2,753 46,801
Union Pacific 1,862 74,480
========================================================================================
297,393
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
0.49 RESTAURANTS
Darden Restaurants 921 $ 14,621
McDonald's Corp 10,204 379,461
Tricon Global Restaurants(a) 1,021 29,226
Wendy's International 818 15,389
========================================================================================
438,697
5.50 RETAIL
Albertson's Inc 3,066 93,896
Bed Bath & Beyond(a) 1,100 29,906
Best Buy(a) 1,400 66,850
Circuit City Stores-Circuit City Group 1,528 58,828
Consolidated Stores(a) 729 10,388
Costco Wholesale(a) 3,080 150,727
CVS Corp 2,826 98,733
Dillard's Inc Class A Shrs 715 13,719
Dollar General 1,918 40,757
Federated Department Stores(a) 1,438 59,857
Gap Inc 6,394 285,732
Great Atlantic & Pacific Tea 300 8,287
Home Depot 17,290 979,046
Kmart Corp(a) 3,568 29,882
Kohl's Corp(a) 1,100 77,137
Kroger Co(a) 6,234 108,316
Limited Inc 1,479 45,387
May Department Stores 2,428 75,571
Nordstrom Inc 1,000 22,000
Penney (J C) Co 1,864 36,581
Rite Aid 1,934 13,659
Safeway Inc(a) 3,700 141,294
Sears Roebuck & Co 2,757 85,295
Tandy Corp 1,328 64,906
Target Corp 3,186 210,475
TJX Cos 2,346 38,269
Toys "R" Us(a) 1,840 18,975
Walgreen Co 7,546 208,458
Wal-Mart Stores 33,460 1,831,935
Water Pik Technologies(a) 66 561
Winn-Dixie Stores 1,021 20,675
========================================================================================
4,926,102
0.16 SAVINGS & LOAN
Golden West Financial 1,245 36,650
Washington Mutual 4,361 110,660
========================================================================================
147,310
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
2.61 SERVICES
America Online(a) 16,800 $ 956,550
Automatic Data Processing 4,684 222,197
Block (H & R) Inc 615 26,522
Cendant Corp(a) 5,319 107,377
Ceridian Corp(a) 1,022 16,352
Computer Sciences(a) 1,302 119,621
Deluxe Corp 511 13,669
Dun & Bradstreet 1,124 28,311
Ecolab Inc 1,000 35,187
Electronic Data Systems 3,500 236,687
Equifax Inc 1,021 21,951
First Data 3,060 150,131
IMS Health 2,312 51,876
Interpublic Group of Cos 2,136 98,256
Omnicom Group 1,343 125,822
Paychex Inc 1,800 79,313
Ryder System 500 11,031
Service Corp International 1,965 8,965
Young & Rubicam 500 26,938
========================================================================================
2,336,756
0.71 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Nextel Communications Class A Shrs(a) 2,700 287,213
Sprint Corp-PCS Group Series 1 Shrs(a) 3,191 351,209
========================================================================================
638,422
3.31 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 24,079 1,270,167
Global Crossing Ltd(a) 5,697 289,123
MCI WorldCom(a) 21,377 982,006
Sprint Corp 6,564 424,609
========================================================================================
2,965,905
3.90 TELEPHONE
ALLTEL Corp 2,270 151,522
Bell Atlantic 11,720 725,907
BellSouth Corp 14,202 668,382
CenturyTel Inc 1,100 42,075
GTE Corp 7,329 537,307
SBC Communications 25,672 1,107,105
US WEST 3,843 255,560
========================================================================================
3,487,858
0.04 TEXTILE -- APPAREL MANUFACTURING
Liz Claiborne 400 13,525
Russell Corp 200 2,988
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
VF Corp 817 $ 21,191
========================================================================================
37,704
0.00 TEXTILE -- HOME FURNISHINGS
Springs Industries Class A Shrs 100 3,638
========================================================================================
0.45 TOBACCO
Philip Morris 17,792 372,520
UST Inc 1,226 28,121
========================================================================================
400,641
0.06 TOYS
Hasbro Inc 1,477 22,155
Mattel Inc 3,191 33,306
========================================================================================
55,461
0.08 TRUCKS & PARTS
Delphi Automotive Systems 4,230 73,232
========================================================================================
TOTAL COMMON STOCKS (Cost $77,006,897) 87,497,191
========================================================================================
2.28 SHORT-TERM INVESTMENTS
0.35 US GOVERNMENT OBLIGATIONS
US Treasury Bills, 6/22/2000(c) (Amortized
Cost $313,726) $ 320,000 313,726
========================================================================================
1.93 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 1/31/2000 due 2/1/2000 at 5.580%,
repurchased at $1,730,268 (Collateralized
by US Treasury Notes, due 9/30/2000
at 4.500%, value $1,767,121) (Cost
$1,730,000) $ 1,730,000 1,730,000
========================================================================================
TOTAL SHORT-TERM INVESTMENTS
(Amortized Cost $2,043,726) 2,043,726
========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $79,050,623)
(Cost for Income Tax Purposes $79,050,708) $ 89,540,917
========================================================================================
SMALL COMPANY GROWTH FUND
83.71 COMMON STOCKS
0.90 AEROSPACE & DEFENSE
Titan Corp(a) 205,900 $ 8,081,575
========================================================================================
0.28 AUTO PARTS
O'Reilly Automotive(a) 188,000 2,467,500
========================================================================================
1.13 BANKS
City National 289,180 10,085,152
========================================================================================
3.77 BIOTECHNOLOGY
Celgene Corp(a) 93,600 6,528,600
Emisphere Technologies(a) 265,700 10,063,387
Enzon Inc(a) 85,600 4,328,150
Incyte Pharmaceuticals(a) 41,900 4,598,525
Protein Design Labs(a) 40,000 3,265,000
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Trimeris Inc(a) 94,000 $ 4,970,250
========================================================================================
33,753,912
3.23 BROADCASTING
Citadel Communications(a) 153,500 7,675,000
Cumulus Media(a) 186,000 7,265,625
Emmis Communications Class A Shrs(a) 72,200 6,385,187
Regent Communications(a) 243,200 2,857,600
Salem Communications Class A Shrs(a) 274,300 4,731,675
========================================================================================
28,915,087
7.46 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Airnet Communications(a) 106,000 3,498,000
AudioCodes Ltd(a) 55,500 3,101,063
Digital Microwave(a) 229,900 7,356,800
Gilat Satellite Networks Ltd(a) 60,600 6,469,050
Harmonic Inc(a) 50,300 4,844,519
Natural MicroSystems(a) 202,100 7,768,219
NICESystems Ltd Sponsored ADR Representing
Ord Shrs(a) 118,000 6,593,250
Polycom Inc(a) 137,200 8,283,450
REMEC Inc(a) 434,150 8,655,866
Tekelec(a) 250,300 5,975,913
ViaSat Inc(a) 61,400 4,167,525
========================================================================================
66,713,655
2.71 COMPUTER RELATED
Advanced Digital Information(a) 82,200 4,027,800
C-COR.net Corp(a) 117,200 2,505,150
Entrust Technologies(a) 70,000 3,316,250
eSoft Inc(a) 125,700 3,299,625
Pilot Network Services(a) 178,200 4,510,688
SkillSoft Corp(a) 41,700 583,000
Visual Networks(a) 96,100 6,042,288
========================================================================================
24,285,601
16.82 COMPUTER SOFTWARE & SERVICES
Accrue Software(a) 103,600 4,092,200
AppNet Inc(a) 131,400 6,093,675
Aspect Development(a) 79,500 5,326,500
BindView Development(a) 159,200 7,323,200
Broadbase Software Inc(a) 38,300 3,375,187
Business Objects SA Sponsored ADR Representing
Ord Shrs(a) 49,000 3,298,313
CBT Group PLC Sponsored ADR Representing
Ord Shrs(a) 160,000 5,440,000
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
DSET Corp(a) 235,000 $ 7,285,000
Exchange Applications(a) 83,400 7,276,650
IONA Technologies PLC Sponsored ADR
Representing Ord Shrs(a) 239,600 11,381,000
JDA Software Group(a) 248,300 4,966,000
Macromedia Inc(a) 69,000 4,722,188
Mediaplex Inc(a) 51,000 5,202,000
Mercury Interactive(a) 22,800 2,493,750
MICROS Systems(a) 67,200 3,927,000
Mission Critical Software(a) 100,000 5,750,000
National Information Consortium(a) 98,300 4,312,913
NetIQ Corp(a) 70,200 3,931,200
NetObjects Inc(a) 282,700 5,866,025
NetRatings Inc(a) 90,200 3,337,400
Open Market(a) 154,600 7,961,900
Peregrine Systems(a) 48,100 3,652,594
Primus Knowledge Solutions(a) 49,200 3,686,925
Quest Software(a) 30,700 2,962,550
S1 Corp(a) 59,000 5,343,188
Technology Solutions(a) 109,500 3,853,031
Tumbleweed Communications(a) 60,700 3,048,279
724 Solutions(a) 70,500 4,785,188
USinternetworking Inc(a) 65,250 2,838,375
WorldGate Communications(a) 160,000 6,860,000
========================================================================================
150,392,231
0.93 DISTRIBUTION
Insight Enterprises(a) 241,600 8,335,200
========================================================================================
0.63 ELECTRICAL EQUIPMENT
DII Group(a) 39,500 3,071,125
Universal Electronics(a) 71,100 2,595,150
========================================================================================
5,666,275
0.67 ELECTRONICS
Anaren Microwave(a) 102,500 6,034,687
========================================================================================
4.58 ELECTRONICS -- SEMICONDUCTOR
ANADIGICS Inc(a) 140,600 10,922,862
Cree Inc(a) 44,500 4,188,562
Galileo Technology Ltd(a) 162,000 2,602,125
QLogic Corp(a) 18,800 2,875,225
Semtech Corp(a) 150,000 9,000,000
TranSwitch Corp(a) 167,250 8,310,234
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Zoran Corp(a) 67,000 $ 3,056,875
========================================================================================
40,955,883
2.58 EQUIPMENT -- SEMICONDUCTOR
Advanced Energy Industries(a) 93,900 4,777,162
Asyst Technologies(a) 53,200 3,857,000
Brooks Automation(a) 114,100 5,819,100
Cymer Inc(a) 70,000 3,858,750
LTX Corp(a) 160,800 4,773,750
========================================================================================
23,085,762
0.57 GAMING
Harrah's Entertainment(a) 253,800 5,060,137
========================================================================================
2.74 HEALTH CARE DRUGS -- PHARMACEUTICALS
Accredo Health(a) 161,700 5,012,700
Alkermes Inc(a) 65,400 4,336,838
DUSA Pharmaceuticals(a) 262,100 6,372,306
Jones Pharmaceutical 88,600 5,144,337
NPS Pharmaceuticals(a) 266,300 3,661,625
========================================================================================
24,527,806
3.30 HEALTH CARE RELATED
Aspect Medical Systems(a) 12,100 338,800
Caliper Technologies(a) 36,900 5,108,344
Eclipsys Corp(a) 145,200 3,639,075
Invitrogen Corp(a) 58,300 3,855,087
Molecular Devices Corp(a) 97,400 4,772,600
Professional Detailing(a) 247,200 6,674,400
Province Healthcare(a) 191,800 5,082,700
========================================================================================
29,471,006
0.77 INVESTMENT BANK/BROKER FIRM
Affiliated Managers Group(a) 200,000 6,925,000
========================================================================================
1.11 LEISURE TIME
Intrawest Corp 295,000 3,871,875
Steiner Leisure Ltd(a) 345,000 6,059,063
========================================================================================
9,930,938
4.81 OIL & GAS RELATED
Atwood Oceanics(a) 156,800 6,399,400
Basin Exploration(a) 272,500 3,695,781
Dril-Quip Inc(a) 173,200 5,466,625
Evergreen Resources(a) 205,100 4,569,886
Louis Dreyfus Natural Gas(a) 369,200 6,599,450
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Newfield Exploration(a) 185,600 $ 5,104,000
Precision Drilling(a) 288,000 7,362,000
Unit Corp(a) 508,000 3,810,000
========================================================================================
43,007,142
0.54 PERSONAL CARE
Playtex Products(a) 380,000 4,797,500
========================================================================================
3.11 RETAIL
Callaway Golf 516,500 6,585,375
Cost Plus(a) 162,500 2,721,875
E-Stamp Corp(a) 138,700 2,357,900
Men's Wearhouse(a) 292,200 6,976,275
Pacific Sunwear of California(a) 181,300 5,325,688
Wild Oats Markets(a) 232,150 3,830,475
========================================================================================
27,797,588
13.06 SERVICES
AGENCY.com Inc(a) 87,200 3,215,500
AHL Services(a) 193,450 3,071,019
Corporate Executive Board(a) 41,700 2,142,337
Digital Impact Inc(a) 120,000 5,760,000
Getty Images(a) 190,300 7,421,700
HotJobs.com Ltd(a) 221,400 6,171,525
Interep National Radio Sales Class A Shrs(a) 351,700 4,660,025
InterVoice-Brite Inc(a) 256,200 6,661,200
IntraNet Solutions(a) 203,300 7,064,675
Intraware Inc(a) 45,000 2,295,000
ISS Group(a) 80,000 5,295,000
Jack Henry & Associates 128,120 7,334,870
Jupiter Communications(a) 137,500 3,437,500
Metamor Worldwide(a) 212,900 6,014,425
NCO Group(a) 265,700 6,127,706
Pegasus Systems(a) 54,300 1,466,100
Precision Response Corp(a) 215,700 5,459,906
PROVANT Inc(a) 193,200 4,033,050
QRS Corp(a) 34,500 2,492,625
Quintus Corp(a) 106,300 3,587,625
Regis Corp 392,600 6,919,575
TSI International Software Ltd(a) 117,500 7,204,219
24/7 Media(a) 146,000 8,960,750
========================================================================================
116,796,332
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.80 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
interWAVE Communications International Ltd(a) 16,800 $ 613,200
Pinnacle Holdings(a) 290,000 12,306,875
Proxim Inc(a) 36,800 3,144,100
========================================================================================
16,064,175
3.89 TELECOMMUNICATIONS -- LONG DISTANCE
Deltathree.com Inc Class A Shrs(a) 249,400 10,971,817
Dycom Industries(a) 175,650 7,552,950
Esat Telecom Group PLC Sponsored ADR
Representing 2 Ord Shrs(a) 60,700 5,914,456
FirstCom Corp(a) 167,800 4,520,112
Viatel Inc(a) 157,300 5,810,269
========================================================================================
34,769,604
0.99 TELEPHONE
CTC Communications Group(a) 172,800 6,771,600
Inet Technologies(a) 51,200 2,088,001
========================================================================================
8,859,601
0.24 TEXTILE -- APPAREL MANUFACTURING
Quiksilver Inc(a) 176,500 2,140,063
========================================================================================
0.58 TEXTILE -- HOME FURNISHINGS
Linens 'n Things(a) 266,600 5,232,025
========================================================================================
0.51 TOYS
JAKKS Pacific(a) 277,200 4,530,491
========================================================================================
TOTAL COMMON STOCKS (Cost $599,785,145) 748,681,928
========================================================================================
16.29 SHORT-TERM INVESTMENTS
12.30 COMMERCIAL PAPER
3.36 CONSUMER FINANCE
Household Finance, 5.506%, 2/1/2000 $ 30,000,000 30,000,000
========================================================================================
4.47 RETAIL
Sears Roebuck Acceptance, 5.706%, 2/4/2000 $ 40,000,000 40,000,000
========================================================================================
4.47 SERVICES
Hertz Corp, 5.506%, 2/3/2000 $ 40,000,000 40,000,000
========================================================================================
TOTAL COMMERCIAL PAPER (Cost $110,000,000) 110,000,000
========================================================================================
3.99 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 1/31/2000 due 2/1/2000 at 5.580%,
repurchased at $35,684,530 (Collateralized
by US Treasury Notes, due 9/30/2000 at
4.500%, value $36,406,704)
(Cost $35,679,000) $ 35,679,000 35,679,000
========================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $145,679,000) 145,679,000
========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $745,464,145)
(Cost for Income Tax Purposes $745,903,475) $ 894,360,928
========================================================================================
VALUE EQUITY FUND
100.00 COMMON STOCKS
1.00 AEROSPACE & DEFENSE
United Technologies 53,400 $ 2,826,863
========================================================================================
0.44 AUTO PARTS
Johnson Controls 22,500 1,243,125
========================================================================================
2.01 AUTOMOBILES
Ford Motor 113,600 5,651,600
========================================================================================
6.16 BANKS
Bank of America 111,364 5,394,194
Chase Manhattan 71,600 5,759,325
FleetBoston Financial 79,700 2,505,569
PNC Bank 33,400 1,603,200
State Street 26,000 2,084,875
========================================================================================
17,347,163
1.60 BEVERAGES
Anheuser-Busch Cos 66,500 4,488,750
========================================================================================
2.32 BUILDING MATERIALS
Lowe's Cos 58,800 2,623,950
Sherwin-Williams Co 132,700 2,338,838
Vulcan Materials 36,900 1,561,331
========================================================================================
6,524,119
1.99 CABLE
MediaOne Group(a) 70,500 5,604,750
========================================================================================
1.74 CHEMICALS
Dow Chemical 26,300 3,063,950
Praxair Inc 45,500 1,845,594
========================================================================================
4,909,544
1.45 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 43,000 2,835,312
Tellabs Inc(a) 23,300 1,258,200
========================================================================================
4,093,512
4.90 COMPUTER RELATED
Adaptec Inc(a) 38,500 2,016,438
Hewlett-Packard Co 30,800 3,334,100
International Business Machines 32,500 3,646,094
Sun Microsystems(a) 40,500 3,181,781
Unisys Corp(a) 50,800 1,619,250
========================================================================================
13,797,663
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
6.81 COMPUTER SOFTWARE & SERVICES
Cadence Design Systems(a) 109,100 $ 2,250,188
Computer Associates International 78,325 5,379,948
Compuware Corp(a) 108,400 2,296,725
Microsoft Corp(a) 34,700 3,396,262
Oracle Corp(a) 94,100 4,700,589
Synopsys Inc(a) 24,900 1,150,069
========================================================================================
19,173,781
1.07 CONSUMER FINANCE
Household International 85,700 3,020,925
========================================================================================
0.53 DISTRIBUTION
SUPERVALU Inc 83,200 1,497,600
========================================================================================
1.68 ELECTRIC UTILITIES
DTE Energy 49,000 1,702,750
GPU Inc 45,000 1,305,000
Southern Co 67,000 1,716,875
========================================================================================
4,724,625
4.11 ELECTRICAL EQUIPMENT
Emerson Electric 42,700 2,351,169
General Electric 69,200 9,229,550
========================================================================================
11,580,719
2.83 ELECTRONICS -- SEMICONDUCTOR
Intel Corp 80,400 7,954,575
========================================================================================
3.36 FINANCIAL
Citigroup Inc 79,000 4,537,562
Fannie Mae 55,400 3,320,537
Freddie Mac 31,600 1,585,925
========================================================================================
9,444,024
0.51 FOODS
SYSCO Corp 40,400 1,436,725
========================================================================================
11.08 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 47,800 1,559,475
American Home Products 70,300 3,308,494
Bristol-Myers Squibb 91,400 6,032,400
Johnson & Johnson 51,400 4,423,612
Lilly (Eli) & Co 43,300 2,895,687
Merck & Co 70,200 5,532,637
Schering-Plough Corp 68,000 2,992,000
Warner-Lambert Co 46,800 4,443,075
========================================================================================
31,187,380
1.13 HEALTH CARE RELATED
Biomet Inc 48,900 1,946,831
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
Quintiles Transnational(a) 46,500 $ 1,229,344
========================================================================================
3,176,175
0.60 HOUSEHOLD FURNITURE & APPLIANCES
Whirlpool Corp 29,000 1,689,250
========================================================================================
1.59 HOUSEHOLD PRODUCTS
Procter & Gamble 44,300 4,468,762
========================================================================================
5.10 INSURANCE
American General 64,000 3,932,000
American International Group 55,281 5,756,134
MGIC Investment 100,000 4,656,250
========================================================================================
14,344,384
1.67 INSURANCE BROKERS
Marsh & McLennan 50,000 4,700,000
========================================================================================
0.70 IRON & STEEL
Nucor Corp 39,600 1,970,100
========================================================================================
4.64 MANUFACTURING
Illinois Tool Works 61,515 3,598,627
Minnesota Mining & Manufacturing 33,400 3,127,075
Textron Inc 45,500 2,715,781
Tyco International Ltd 64,200 2,744,550
York International 36,300 873,469
========================================================================================
13,059,502
0.96 OFFICE EQUIPMENT & SUPPLIES
Office Depot(a) 153,300 1,542,581
Xerox Corp 56,100 1,171,088
========================================================================================
2,713,669
8.30 OIL & GAS RELATED
Atlantic Richfield 38,000 2,926,000
Chevron Corp 36,400 3,041,675
Exxon Mobil 113,190 9,451,365
Phillips Petroleum 36,100 1,475,588
Repsol SA Sponsored ADR Representing Ord Shrs 84,200 1,599,800
Royal Dutch Petroleum New York Registry 1.25
Gldr Shrs 88,304 4,862,239
========================================================================================
23,356,667
2.84 PAPER & FOREST PRODUCTS
International Paper 60,500 2,881,312
Kimberly-Clark Corp 82,700 5,122,231
========================================================================================
8,003,543
0.53 PHOTOGRAPHY & IMAGING
Eastman Kodak 23,900 1,478,813
========================================================================================
1.23 PUBLISHING
Gannett Co 50,000 3,475,000
========================================================================================
<PAGE>
SHARES OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
1.06 RESTAURANTS
McDonald's Corp 80,100 $ 2,978,719
========================================================================================
2.32 RETAIL
Albertson's Inc 81,400 2,492,875
Costco Wholesale(a) 47,000 2,300,063
Dillard's Inc Class A Shrs 89,800 1,723,038
========================================================================================
6,515,976
2.16 SERVICES
Deluxe Corp 25,700 687,475
First Data 110,100 5,401,781
========================================================================================
6,089,256
4.72 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 57,400 3,027,850
MCI WorldCom(a) 144,450 6,635,672
Sprint Corp 56,000 3,622,500
========================================================================================
13,286,022
3.43 TELEPHONE
ALLTEL Corp 21,700 1,448,475
Bell Atlantic 52,400 3,245,525
SBC Communications 73,902 3,187,024
US WEST 26,700 1,775,550
========================================================================================
9,656,574
0.44 TEXTILE -- APPAREL MANUFACTURING
Liz Claiborne 36,900 1,247,681
========================================================================================
0.57 TOBACCO
Philip Morris 77,100 1,614,281
========================================================================================
0.42 TOYS
Mattel Inc 112,500 1,174,219
========================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $215,744,021)(d) $ 281,506,036
========================================================================================
</TABLE>
(a) Security is non-income producing.
(b) PHONES -- Participation Hybrid Option Notes Exchangeable Securities
(c) Security has been designated as collateral for futures contracts.
(d) Also represents the cost for income tax purposes.
<PAGE>
FUTURE CONTRACTS
OPEN AT JANUARY 31, 2000
- --------------------------------------------------------------------------------
NUMBER OF FACE MARKET
POSITION CONTRACTS AMOUNT VALUE
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND
S&P 500 Index
(Expires March 2000) Long 7 $ 1,750 $ 2,451,750
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
BLUE CHIP
GROWTH DYNAMICS
FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $1,167,717,555 $ 3,523,369,608
================================================================================
At Value(a) $1,639,701,613 $ 5,091,331,533
Cash 160 0
Receivables:
Investment Securities Sold 39,534,300 85,653,844
Fund Shares Sold 8,480,387 77,210,318
Dividends and Interest 485,864 726,797
Prepaid Expenses and Other Assets 152,534 221,504
================================================================================
TOTAL ASSETS 1,688,354,858 5,255,143,996
================================================================================
LIABILITIES
Payables:
Custodian 0 2,135,239
Investment Securities Purchased 68,393,706 135,659,477
Fund Shares Repurchased 1,395,283 20,940,991
Accrued Distribution Expenses 321,998 972,053
Accrued Expenses and Other Payables 108,730 85,431
================================================================================
TOTAL LIABILITIES 70,219,717 159,793,191
================================================================================
NET ASSETS AT VALUE $1,618,135,141 $ 5,095,350,805
================================================================================
NET ASSETS
Paid-in Capital(b) $1,032,853,090 $ 3,440,244,113
Accumulated Undistributed
(Distributions in Excess of) Net
Investment Income (3,703,809) (4,885,492)
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 117,001,802 92,030,187
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 471,984,058 1,567,961,997
================================================================================
NET ASSETS AT VALUE $1,618,135,141 $ 5,095,350,805
================================================================================
Shares Outstanding 204,604,084 200,564,634
NET ASSET VALUE, Offering and
Redemption Price per Share $ 7.91 $ 25.41
================================================================================
(a)Investment securities at cost and value at January 31, 2000 include
repurchase agreements of $4,397,000 and $1,179,000 for Blue Chip Growth and
Dynamics Funds, respectively.
(b)The Fund has 3.5 billion authorized shares of common stocks, par value of
$0.01 per share. Of such shares, 400 million have been allocated to Blue Chip
Growth Fund and 300 million have been allocated to Dynamics Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
INVESCO
ENDEAVOR GROWTH &
FUND INCOME FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 230,407,688 $ 140,012,917
================================================================================
At Value(a) $ 309,931,031 $ 162,911,031
Cash 61,172 126
Receivables:
Investment Securities Sold 0 3,467,066
Fund Shares Sold 5,471,379 2,135,540
Dividends and Interest 11,775 81,748
Prepaid Expenses and Other Assets 37,597 34,027
================================================================================
TOTAL ASSETS 315,512,954 168,629,538
================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 4,066,139 7,217,007
Fund Shares Repurchased 1,823,574 738,361
Accrued Distribution Expenses 60,235 31,918
Accrued Expenses and Other Payables 1,508 3,224
================================================================================
TOTAL LIABILITIES 5,951,456 7,990,510
================================================================================
NET ASSETS AT VALUE $ 309,561,498 $ 160,639,028
================================================================================
NET ASSETS
Paid-in Capital(b) $ 228,801,966 $ 132,822,201
Accumulated Undistributed Net
Investment Loss (927,417) (357,666)
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 2,163,606 5,276,379
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 79,523,343 22,898,114
================================================================================
NET ASSETS AT VALUE $ 309,561,498 $ 160,639,028
================================================================================
Shares Outstanding 13,260,623 9,062,381
NET ASSET VALUE, Offering and
Redemption Price per Share $ 23.34 $ 17.73
================================================================================
(a)Investment securities at cost and value at January 31, 2000 includes a
repurchase agreement of $14,029,000 for INVESCO Endeavor Fund.
(b)The Fund has 3.5 billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to INVESCO
Endeavor Fund and 100 million have been allocated to Growth & Income Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES CONTINUED
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
S&P 500
INDEX FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 79,050,623
================================================================================
At Value(a) $ 89,540,917
Receivables:
Investment Securities Sold 16,180
Fund Shares Sold 218,746
Dividends and Interest 29,450
Variation Margin on Futures Contracts 58,123
Prepaid Expenses and Other Assets 187,860
================================================================================
TOTAL ASSETS 90,051,276
================================================================================
LIABILITIES
Payables:
Custodian 44,366
Distributions to Shareholders 1,350
Investment Securities Purchased 321,513
Fund Shares Repurchased 268,781
Accrued Distribution Expenses - Investor Class 17,028
Accrued Expenses and Other Payables 13,138
================================================================================
TOTAL LIABILITIES 666,176
================================================================================
NET ASSETS AT VALUE $ 89,385,100
================================================================================
NET ASSETS
Paid-in Capital(b) $ 78,674,567
Accumulated Undistributed Net Investment Income 95
Accumulated Undistributed Net Realized Gain on
Investment Securities, Foreign Currency Transactions
and Futures Contracts 298,098
Net Appreciation of Investment Securities and Futures
Contracts 10,412,340
================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 89,385,100
================================================================================
NET ASSETS AT VALUE:
Institutional Class $ 4,744,435
================================================================================
Investor Class $ 84,640,665
================================================================================
Shares Outstanding
Institutional Class 321,315
Investor Class 5,642,874
Net Asset Value, Offering and Redemption Price per Share
Institutional Class $ 14.77
Investor Class $ 15.00
================================================================================
(a)Investment securities at cost and value at January 31, 2000 includes a
repurchase agreement of $1,730,000.
(b)The Fund has 3.5 billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual class.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO STOCK FUNDS, INC.
JANUARY 31, 2000
UNAUDITED
SMALL VALUE
COMPANY EQUITY
GROWTH FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 745,464,145 $ 215,744,021
================================================================================
At Value(a) $ 894,360,928 $ 281,506,036
Cash 5,291,010 0
Receivables:
Investment Securities Sold 11,342,345 15,075,179
Fund Shares Sold 17,208,193 3,176,611
Dividends and Interest 93,598 373,088
Prepaid Expenses and Other Assets 139,882 231,964
================================================================================
TOTAL ASSETS 928,435,956 300,362,878
================================================================================
LIABILITIES
Payables:
Custodian 0 149,720
Distributions to Shareholders 0 1,635
Investment Securities Purchased 26,242,938 4,256,169
Fund Shares Repurchased 7,836,677 3,799,716
Accrued Distribution Expenses 172,476 62,047
Accrued Expenses and Other Payables 56,461 38,529
================================================================================
TOTAL LIABILITIES 34,308,552 8,307,816
================================================================================
NET ASSETS AT VALUE $ 894,127,404 $ 292,055,062
================================================================================
NET ASSETS
Paid-in Capital(b) $ 633,156,257 $ 198,283,523
Accumulated Undistributed
(Distribution in Excess of)
Net Investment Income (Loss) (1,501,480) (21,103)
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 113,575,844 28,030,627
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 148,896,783 65,762,015
================================================================================
NET ASSETS AT VALUE $ 894,127,404 $ 292,055,062
================================================================================
Shares Outstanding 50,247,626 11,419,988
NET ASSET VALUE, Offering and
Redemption Price per Share $ 17.79 $ 25.57
================================================================================
(a)Investment securities at cost and value at January 31, 2000 includes a
repurchase agreement of $35,679,000 for Small Company Growth Fund.
(b)The Fund has 3.5 billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, 200 million have been allocated to Small
Company Growth Fund and 100 million have been allocated to Value Equity Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO STOCK FUNDS, INC.
SIX MONTHS ENDED JANUARY 31, 2000
UNAUDITED
BLUE CHIP
GROWTH DYNAMICS
FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 3,471,029 $ 3,878,720
Interest 156,835 7,373,816
Foreign Taxes Withheld 0 (27,142)
================================================================================
TOTAL INCOME 3,627,864 11,225,394
================================================================================
EXPENSES
Investment Advisory Fees 3,802,733 8,500,046
Distribution Expenses 1,769,397 4,321,737
Transfer Agent Fees 972,124 1,917,611
Administrative Fees 323,492 782,913
Custodian Fees and Expenses 77,693 203,031
Directors' Fees and Expenses 36,984 69,666
Interest Expense 39,793 0
Professional Fees and Expenses 29,688 48,953
Registration Fees and Expenses 96,073 111,470
Reports to Shareholders 190,522 257,889
Other Expenses 17,597 35,469
================================================================================
TOTAL EXPENSES 7,356,096 16,248,785
Fees and Expenses Paid Indirectly (77,586) (202,962)
================================================================================
NET EXPENSES 7,278,510 16,045,823
================================================================================
NET INVESTMENT INCOME (LOSS) (3,650,646) (4,820,429)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 148,057,682 98,821,181
Foreign Currency Transactions 0 (521,997)
================================================================================
Total Net Realized Gain 148,057,682 98,299,184
================================================================================
Change in Net Appreciation of:
Investment Securities 210,736,869 1,000,075,804
Foreign Currency Transactions 0 60,067
================================================================================
Total Net Appreciation 210,736,869 1,000,135,871
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN SECURITY TRANSACTIONS 358,794,551 1,098,435,055
================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 355,143,905 $ 1,093,614,626
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
SIX MONTHS ENDED JANUARY 31, 2000
UNAUDITED
INVESCO
ENDEAVOR GROWTH &
FUND INCOME FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 127,058 $ 359,252
Interest 351,766 125,583
Foreign Taxes Withheld (321) 0
================================================================================
TOTAL INCOME 478,503 484,835
================================================================================
EXPENSES
Investment Advisory Fees 737,905 431,327
Distribution Expenses 245,968 143,776
Transfer Agent Fees 236,724 139,203
Administrative Fees 49,274 30,880
Custodian Fees and Expenses 12,629 12,093
Directors' Fees and Expenses 6,856 6,011
Professional Fees and Expenses 11,540 10,818
Registration Fees and Expenses 58,337 41,045
Reports to Shareholders 54,627 34,623
Other Expenses 1,736 1,532
================================================================================
TOTAL EXPENSES 1,415,596 851,308
Fees and Expenses Absorbed by
Investment Adviser 0 (472)
Fees and Expenses Paid Indirectly (9,676) (8,612)
================================================================================
NET EXPENSES 1,405,920 842,224
================================================================================
NET INVESTMENT LOSS (927,417) (357,389)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 5,679,583 7,037,853
Foreign Currency Transactions (105,542) (2,631)
================================================================================
Total Net Realized Gain 5,574,041 7,035,222
================================================================================
Change in Net Appreciation of:
Investment Securities 69,375,101 15,891,070
Foreign Currency Transactions 82,811 0
================================================================================
Total Net Appreciation 69,457,912 15,891,070
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 75,031,953 22,926,292
================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 74,104,536 $ 22,568,903
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
SIX MONTHS ENDED JANUARY 31, 2000
UNAUDITED
S&P 500
INDEX
FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 450,938
Interest 129,868
Foreign Taxes Withheld (1,953)
================================================================================
TOTAL INCOME 578,853
================================================================================
EXPENSES
Investment Advisory Fees 100,316
Distribution Expenses - Investor Class 94,655
Transfer Agent Fees 76,873
Administrative Fees 23,057
Custodian Fees and Expenses 17,369
Directors' Fees and Expenses 5,685
Professional Fees and Expenses 12,252
Registration Fees and Expenses
Institutional Class 10,353
Investor Class 24,243
Reports to Shareholders 20,881
Other Expenses 1,126
================================================================================
TOTAL EXPENSES 386,810
Fees and Expenses Absorbed by Investment Adviser (137,603)
Fees and Expenses Paid Indirectly (12,771)
================================================================================
NET EXPENSES 236,436
================================================================================
NET INVESTMENT INCOME 342,417
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities and Foreign Currency Transactions 29,174
Futures Contracts 250,654
================================================================================
Total Net Realized Gain 279,828
================================================================================
Change in Net Appreciation of:
Investment Securities and Foreign Currency Transactions 3,482,374
Futures Contracts 10,390
================================================================================
Total Net Appreciation 3,492,764
================================================================================
NET GAIN ON INVESTMENT SECURITIES, FOREIGN
CURRENCY TRANSACTIONS AND FUTURES CONTRACTS 3,772,592
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 4,115,009
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
SIX MONTHS ENDED JANUARY 31, 2000
UNAUDITED
SMALL VALUE
COMPANY EQUITY
GROWTH FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 142,778 $ 2,723,134
Interest 2,376,564 231,524
Foreign Taxes Withheld (2,451) (17,010)
================================================================================
TOTAL INCOME 2,516,891 2,937,648
================================================================================
EXPENSES
Investment Advisory Fees 2,128,358 1,265,158
Distribution Expenses 755,451 421,719
Transfer Agent Fees 720,188 518,429
Administrative Fees 141,495 80,910
Custodian Fees and Expenses 51,410 27,509
Directors' Fees and Expenses 16,434 14,566
Professional Fees and Expenses 18,912 14,349
Registration Fees and Expenses 59,171 30,607
Reports to Shareholders 140,477 40,763
Other Expenses 6,078 5,308
================================================================================
TOTAL EXPENSES 4,037,974 2,419,318
Fees and Expenses Absorbed by
Investment Adviser (1,326) (199,613)
Fees and Expenses Paid Indirectly (40,417) (20,371)
================================================================================
NET EXPENSES 3,996,231 2,199,334
================================================================================
NET INVESTMENT INCOME (LOSS) (1,479,340) 738,314
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 144,706,047 53,440,950
Foreign Currency Transactions 0 220
================================================================================
Total Net Realized Gain 144,706,047 53,441,170
================================================================================
Change in Net Appreciation
(Depreciation) of Investment
Securities 91,290,500 (72,533,214)
================================================================================
NET GAIN (LOSS) ON INVESTMENT
SECURITIES AND FOREIGN CURRENCY
TRANSACTIONS 235,996,547 (19,092,044)
================================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 234,517,207 $ (18,353,730)
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
BLUE CHIP GROWTH FUND
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
JANUARY 31 JULY 31 AUGUST 31
- ----------------------------------------------------------------------------------------------
2000 1999 1998
UNAUDITED (Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (3,650,646) $ (865,975) $ 2,968,238
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 148,057,682 112,169,586 104,101,420
Change in Net Appreciation
(Depreciation) of Investment
Securities 210,736,869 233,360,777 (9,504,119)
==============================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 355,143,905 344,664,388 97,565,539
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (4,018) 0 (2,912,112)
In Excess of Net Investment Income 0 (69,191) 0
Net Realized Gain on Investment
Securities (139,726,960) (84,849,471) (187,061,864)
==============================================================================================
TOTAL DISTRIBUTIONS (139,730,978) (84,918,662) (189,973,976)
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 485,705,186 1,033,836,692 547,827,536
Reinvestment of Distributions 125,357,188 75,265,536 168,012,124
==============================================================================================
611,062,374 1,109,102,228 715,839,660
Amounts Paid for Repurchases of
Shares (441,247,922) (883,678,836) (584,913,034)
==============================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 169,814,452 225,423,392 130,926,626
==============================================================================================
TOTAL INCREASE IN NET ASSETS 385,227,379 485,169,118 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 ($3,703,809), ($49,145)
and $34,771, respectively) $1,618,135,141 $1,232,907,762 $ 747,738,644
==============================================================================================
-------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 64,271,366 160,399,762 94,746,511
Shares Issued from Reinvestment
of Distributions 16,912,072 12,459,923 34,540,804
==============================================================================================
81,183,438 172,859,685 129,287,315
Shares Repurchased (59,139,494) (135,422,302) (101,276,736)
==============================================================================================
NET INCREASE IN FUND SHARES 22,043,944 37,437,383 28,010,579
==============================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
DYNAMICS FUND
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
JANUARY 31 JULY 31 APRIL 30
- ----------------------------------------------------------------------------------------------
2000 1999 1999
UNAUDITED (Note 1)
OPERATIONS
Net Investment Loss $ (4,820,429) $ (1,807,295) $ (5,886,433)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 98,299,184 110,302,210 57,512,828
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 1,000,135,871 31,442,538 283,095,480
==============================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 1,093,614,626 139,937,453 334,721,875
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (165,103,476) 0 (115,015,920)
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 3,163,047,415 869,941,998 2,129,570,413
Reinvestment of Distributions 162,373,922 0 113,049,160
==============================================================================================
3,325,421,337 869,941,998 2,242,619,573
Amounts Paid for Repurchases
of Shares (1,630,063,337) (582,718,812) (1,758,303,356)
==============================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 1,695,358,000 287,223,186 484,316,217
==============================================================================================
TOTAL INCREASE IN NET ASSETS 2,623,869,150 427,160,639 704,022,172
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 ($4,885,492), ($65,063) and
($61,368), respectively) $ 5,095,350,805 $ 2,471,481,655 $2,044,321,016
==============================================================================================
-----------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 139,910,076 45,635,822 135,833,566
Shares Issued from Reinvestment
of Distributions 7,219,836 0 8,011,923
==============================================================================================
147,129,912 45,635,822 143,845,489
Shares Repurchased (74,035,093) (30,807,994) (112,899,930)
==============================================================================================
NET INCREASE IN FUND SHARES 73,094,819 14,827,828 30,945,559
==============================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INVESCO ENDEAVOR FUND
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 APRIL 30
- ----------------------------------------------------------------------------------------------
2000 1999 1999(a)
UNAUDITED (Note 1)
OPERATIONS
Net Investment Loss $ (927,417) $ (191,562) $ (154,763)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 5,574,041 5,545,050 4,674,887
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign Currency
Transactions 69,457,912 (5,309,394) 15,374,825
==============================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 74,104,536 44,094 19,894,949
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (13,284,047) 0 0
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 320,576,478 82,344,436 154,292,260
Reinvestment of Distributions 12,934,412 0 0
==============================================================================================
333,510,890 82,344,436 154,292,260
Amounts Paid for Repurchases
of Shares (194,301,811) (45,448,995) (101,594,814)
==============================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 139,209,079 36,895,441 52,697,446
==============================================================================================
TOTAL INCREASE IN NET ASSETS 200,029,568 36,939,535 72,592,395
NET ASSETS
Beginning of Period 109,531,930 72,592,395 0
==============================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in
Excess of) Net Investment Income
(Loss) of ($927,417), $0 and
($154,763) respectively) $309,561,498 $109,531,930 $72,592,395
==============================================================================================
--------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 15,378,848 4,829,435 11,384,455
Shares Issued from Reinvestment
of Distributions 627,276 0 0
==============================================================================================
16,006,124 4,829,435 11,384,455
Shares Repurchased (9,338,473) (2,684,902) (6,936,016)
==============================================================================================
NET INCREASE IN FUND SHARES 6,667,651 2,144,533 4,448,439
==============================================================================================
(a) From October 28, 1998, commencement of investment operations, to April 30, 1999.
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GROWTH & INCOME FUND
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 APRIL 30
- ----------------------------------------------------------------------------------------------
2000 1999 1999(a)
UNAUDITED (Note 1)
OPERATIONS
Net Investment Loss $ (357,389) $ (63,702) $ (70,576)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 7,035,222 2,936,850 5,112,480
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 15,891,070 107,107 6,899,937
==============================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 22,568,903 2,980,255 11,941,841
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (7,841,126) 0 (1,833,046)
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 191,402,015 19,917,033 103,261,159
Reinvestment of Distributions 7,665,941 0 1,763,814
==============================================================================================
199,067,956 19,917,033 105,024,973
Amounts Paid for Repurchases
of Shares (114,472,596) (15,575,219) (61,389,946)
==============================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 84,595,360 4,341,814 43,635,027
==============================================================================================
TOTAL INCREASE IN NET ASSETS 99,323,137 7,322,069 53,743,822
NET ASSETS
Initial Subscription (Note 1) 0 0 250,000
Beginning of Period 61,315,891 53,993,822 0
==============================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
$357,666, $277 and ($186)
(respectively) $160,639,028 $ 61,315,891 $ 53,993,822
==============================================================================================
------------------------------------------------------
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) 0 0 25,000
Shares Sold 11,457,882 1,304,788 8,250,996
Shares Issued from Reinvestment of
Distributions 456,306 0 137,476
==============================================================================================
11,914,188 1,304,788 8,413,472
Shares Repurchased (6,842,196) (1,027,866) (4,700,005)
==============================================================================================
NET INCREASE IN FUND SHARES 5,071,992 276,922 3,713,467
==============================================================================================
(a) From July 1, 1998, commencement of investment operations, to April 30, 1999.
See Notes to Financial Statements
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 INDEX FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31 JULY 31
- --------------------------------------------------------------------------------
2000 1999
UNAUDITED
OPERATIONS
Net Investment Income $ 342,417 $ 471,534
Net Realized Gain on Investment Securities,
Foreign Currency Transactions and
Futures Contracts 279,828 678,056
Change in Net Appreciation of Investment
Securities and Futures Contracts 3,492,764 6,211,781
================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 4,115,009 7,361,371
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Institutional Class (34,506) (52,661)
Investor Class (310,133) (418,861)
Net Realized Gain on Investment Securities,
Foreign Currency Transactions and
Futures Contracts
Institutional Class (36,552) (11,013)
Investor Class (640,658) (104,474)
================================================================================
TOTAL DISTRIBUTIONS (1,021,849) (587,009)
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 1,753,087 1,376,114
Investor Class 37,465,607 65,043,426
Reinvestment of Distributions
Institutional Class 71,052 63,674
Investor Class 934,556 514,657
================================================================================
40,224,302 66,997,871
================================================================================
Amounts Paid for Repurchases of Shares
Institutional Class (1,654,718) (764,087)
Investor Class (21,310,900) (22,298,285)
================================================================================
(22,965,618) (23,062,372)
================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 17,258,684 43,935,499
================================================================================
TOTAL INCREASE IN NET ASSETS 20,351,844 50,709,861
NET ASSETS
Beginning of Period 69,033,256 18,323,395
================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Income
of $95, $2,317 and $2,494, respectively) $ 89,385,100 $ 69,033,256
================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
S&P 500 INDEX FUND (CONTINUED)
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31 JULY 31
- --------------------------------------------------------------------------------
2000 1999
UNAUDITED
FUND SHARE TRANSACTIONS
Shares Sold
Institutional Class 117,191 100,399
Investor Class 2,516,763 4,876,896
Shares Issued from Reinvestment
of Distributions
Institutional Class 4,775 4,741
Investor Class 62,214 37,760
================================================================================
2,700,943 5,019,796
================================================================================
Shares Repurchased
Institutional Class (111,760) (65,360)
Investor Class (1,425,409) (1,666,513)
================================================================================
(1,537,169) (1,731,873)
================================================================================
NET INCREASE IN FUND SHARES 1,163,774 3,287,923
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SMALL COMPANY GROWTH FUND
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
JANUARY 31 JULY 31 MAY 31
- ----------------------------------------------------------------------------------------------
2000 1999 1999
UNAUDITED (Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (1,479,340) $ (493,356) $ (1,520,695)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 144,706,047 25,477,829 22,301,174
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 91,290,500 23,498,647 17,417,507
==============================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 234,517,207 48,483,120 38,197,986
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (76,689,944) 0 (26,845,319)
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 754,615,079 206,787,274 606,918,472
Reinvestment of Distributions 74,488,762 0 26,316,463
Net Assets Received from Acquisition
of Small Company Value Fund (Note 3) 0 37,196,562 0
==============================================================================================
829,103,841 243,983,836 633,234,935
Amounts Paid for Repurchases
of Shares (545,664,902) (157,715,200) (599,096,847)
==============================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 283,438,939 86,268,636 34,138,088
==============================================================================================
TOTAL INCREASE IN NET ASSETS 441,266,202 134,751,756 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
($1,501,480), ($22,140) and
($21,512), respectively) $ 894,127,404 $ 452,861,202 $ 318,109,446
==============================================================================================
----------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 46,862,568 15,863,285 54,131,470
Shares Issued from Reinvestment of
Distributions 4,853,342 0 2,518,300
Shares Issued in Connection with
Acquisition of Small Company Value
Fund (Note 3) 0 3,019,096 0
==============================================================================================
51,715,910 18,882,381 56,649,770
Shares Repurchased (34,730,476) (11,949,112) (53,229,883)
==============================================================================================
NET INCREASE IN FUND SHARES 16,985,434 6,933,269 3,419,887
==============================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN ASSETS (CONTINUED)
VALUE EQUITY FUND
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
JANUARY 31 JULY 31 AUGUST 31
- ----------------------------------------------------------------------------------------------
2000 1999 1998
UNAUDITED (Note 1)
OPERATIONS
Net Investment Income $ 738,314 $ 2,305,759 $ 3,528,628
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 53,441,170 3,750,608 39,716,148
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (72,533,214) 81,638,227 (45,560,535)
==============================================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS (18,353,730) 87,694,594 (2,315,759)
==============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (752,925) (2,294,923) (3,546,111)
In Excess of Net Investment Income 0 (5,812) (11,054)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions (29,107,019) (31,654,557) (26,588,368)
==============================================================================================
TOTAL DISTRIBUTIONS (29,859,944) (33,955,292) (30,145,533)
==============================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 108,942,542 275,439,791 451,339,743
Reinvestment of Distributions 29,054,839 33,721,744 28,948,214
==============================================================================================
137,997,381 309,161,535 480,287,957
Amounts Paid for Repurchases
of Shares (167,710,151) (342,903,195) (467,608,421)
==============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (29,712,770) (33,741,660) 12,679,536
==============================================================================================
TOTAL INCREASE (DECREASE)
IN NET ASSETS (77,926,444) 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
($21,103), ($6,492) and ($10,836),
respectively) $ 292,055,062 $ 369,981,506 $ 349,983,864
==============================================================================================
------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 3,947,950 9,361,699 15,256,421
Shares Issued from Reinvestment
of Distributions 1,110,457 1,186,215 1,058,632
==============================================================================================
5,058,407 10,547,914 16,315,053
Shares Repurchased (6,135,448) (11,678,504) (15,751,418)
==============================================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (1,077,041) (1,130,590) 563,635
==============================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Notes to financial statements -- INVESCO STOCK FUNDS, INC.
UNAUDITED
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, INVESCO Endeavor Fund, Growth & Income
Fund, S&P 500 Index Fund, Small Company Growth Fund and Value Equity Fund
(individually the "Fund" and collectively, the "Funds"). Dynamics, INVESCO
Endeavor and Growth & Income Funds' fiscal year-ends were changed from April 30
to July 31.
On May 20, 1999, shareholders of Blue Chip Growth, S&P 500 Index, Small Company
Growth and Value Equity Funds approved an Agreement and Plan of Conversion and
Termination whereby Blue Chip Growth Fund, formerly the sole portfolio
constituting INVESCO Growth Funds, Inc., S&P 500 Index Fund, formerly one of the
portfolios constituting INVESCO Specialty Funds, Inc., Small Company Growth
Fund, formerly the sole portfolio constituting INVESCO Emerging Opportunity
Funds, Inc. and Value Equity Fund, formerly one of the portfolios constituting
INVESCO Value Trust Funds, Inc. were reorganized into the Fund, effective July
15, 1999. As part of the reorganization, Blue Chip Growth, Small Company Growth
and Value Equity Funds' fiscal year-ends were changed from August 31, May 31 and
August 31, respectively, to July 31.
The investment objectives of the Funds' are: To seek long-term capital growth
for Blue Chip Growth and Small Company Growth Funds; to seek appreciation of
capital for Dynamics, INVESCO Endeavor and Growth & Income Funds; to provide
both price performance and income comparable to the Standard and Poor's 500
composite stock index for the S&P 500 Index Fund; and to achieve a high total
return on investments through capital appreciation and current income for Value
Equity Fund.
The S&P 500 Index Fund offers two classes of shares, referred to as
Institutional Class shares and Investor Class shares. Institutional Class shares
are not subject to any distribution fees, while Investor Class shares are
subject to an annual distribution fee of 0.25% of the Fund's annual average net
assets attributable to Investor Class shares. Income, expenses (other than those
attributable to a specific class) and gains and losses are allocated daily to
each class of shares based on the relative proportion of net assets represented
by such class. Operating expenses directly attributable to a specific class are
charged against operations of that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with 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 that exchange (generally 4:00 p.m.
Eastern time) in the market 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 and obtained from one or more
dealers making a market for such securities or by a pricing service approved by
the Fund's board of directors.
Debt securities are valued at evaluated bid prices as determined by a pricing
service approved by the Fund's board of directors. If evaluated bid prices are
not available, debt securities are valued by averaging the bid prices obtained
from one or more dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
<PAGE>
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
If market quotations or pricing service valuations are not readily available,
securities are valued at fair value as determined in good faith under procedures
established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates market
value) if maturity is 60 days or less at the time of purchase, or market value
if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation.
B. FUTURES CONTRACTS -- S&P 500 Index Fund may enter into futures contracts for
non-speculative purposes. Upon entering into a contract, S&P 500 Index Fund
deposits and maintains as collateral such initial margin as may be required by
the exchanges on which the transaction is effected. Pursuant to the contracts,
S&P 500 Index Fund agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by S&P 500 Index Fund
as variation margin receivable or payable on futures contracts. During the
period the futures contracts are open, changes in the value of the contracts are
recognized on a daily basis to reflect the market value of the contracts at the
end of each day's trading and are recorded as unrealized gain or loss. When the
contract is closed, S&P 500 Index Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed. S&P 500 Index Fund's use of futures
contracts may subject it to certain risks as a result of unanticipated movements
in the market. In addition, there can be no assurance that a liquid secondary
market will exist for any contract purchased or sold.
C. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to ensure
its market value exceeds the current market value of the repurchase agreements
including accrued interest. In the event of default on the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Certain dividends from foreign securities will be recorded as
soon as the Fund is informed of the dividend if such information is obtained
subsequent to the ex-dividend date. Interest income, which may be comprised of
stated coupon rate, market discount, original issue discount and amortized
premium, is recorded on the accrual basis. Income and expenses on foreign
securities are translated into U.S. dollars at rates of exchange prevailing when
accrued. Discounts and premiums on debt securities purchased are amortized over
the life of the respective security as adjustments to interest income. Cost is
determined on the specific identification basis. The cost of foreign securities
is translated into U.S. dollars at the rates of exchange prevailing when such
securities are acquired.
The Fund may have elements of risk due to investments in specific industries or
foreign issuers located in a specific country. Such investments may subject the
Fund to additional risks resulting from future political or economic conditions
and/or possible impositions of adverse foreign governmental laws or currency
exchange restrictions. Net realized and unrealized gain or loss from investment
securities includes fluctuations from currency exchange rates and fluctuations
in market value.
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
<PAGE>
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
E. FEDERAL AND STATE TAXES -- The Fund has complied, and continues to comply,
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
distributions of net investment income and net realized capital gains, if any,
to relieve it from all federal and state income taxes and federal excise taxes.
S&P 500 Index and Value Equity Funds incurred and elected to defer post-October
31 net foreign currency losses of $187 and $676, respectively, to the year ended
July 31, 2000.
To the extent future capital gains are offset by capital loss carryovers and
deferred post-October 31 losses, such gains will not be distributed to
shareholders.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex-dividend/distribution date. The
Fund distributes net realized capital gains, if any, to its shareholders at
least annually, if not offset by capital loss carryovers. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from 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.
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 by the Fund from
security brokerage transactions under certain broker/service arrangements with
third parties. Such credits are included in Fees and Expenses Paid Indirectly in
the Statement of Operations.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Funds' investment adviser. As compensation for its
services to the Funds, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee is based on the annual
rate of each Fund's average net assets as follows:
<PAGE>
<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%
AVERAGE NET ASSETS
- ---------------------------------------------------------------------------------------------------
$500 $1 $2 $4 $6
$0 TO MILLION BILLION BILLION BILLION BILLION OVER
$500 TO $1 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION BILLION BILLION BILLION BILLION BILLION BILLION
- ---------------------------------------------------------------------------------------------------
INVESCO Endeavor
Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Growth & Income
Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
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. For the six months
ended January 31, 2000, Blue Chip Growth, Dynamics, INVESCO Endeavor, Growth &
Income, S&P 500 Index - Investor Class, Small Company Growth and Value Equity
Funds paid the Distributor $1,724,684, $3,874,091, $209,582, $124,798, $91,488,
$683,963 and $442,710 respectively, under the plan of distribution.
IFG receives a transfer agent fee from each Fund at an annual rate of
$20.00 per shareholder account, or, where applicable, per participant in an
omnibus account, per year. IFG may pay such fee for participants in omnibus
accounts to affiliates or third parties. The fee is paid monthly at one-twelfth
of the annual fee and is based upon the actual number of accounts in existence
during each month.
In accordance with an Administrative Services Agreement, each Fund pays IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG has voluntarily agreed, to absorb certain fees and expenses incurred by
Growth & Income, S&P 500 Index, Small Company Growth and Value Equity Funds for
the six months ended January 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
<PAGE>
S&P 500 Index Fund. Total redemption fees received by S&P 500 Index Fund for the
six months ended January 31, 2000 were $19,267.
NOTE 3 -- ACQUISITION OF INVESCO DIVERSIFIED FUNDS, INC. -- SMALL COMPANY VALUE
FUND ("TARGET FUND"). On June 4, 1999, Small Company Growth Fund acquired all
the net assets of the Target Fund pursuant to an Agreement and Plan of
Reorganization and Termination approved by the Target Fund shareholders on May
20, 1999. The acquisition was accomplished by a tax-free exchange of 3,019,096
shares of Small Company Growth Fund (valued at $37,196,562) for 3,719,526 shares
of the Target Fund outstanding on June 4, 1999. The Target Fund's net assets at
that date ($37,196,562) including $3,216,394 of unrealized appreciation were
combined with those of Small Company Growth Fund. The aggregate net assets of
Small Company Growth Fund and the Target Fund immediately before the acquisition
were $341,636,283 and $37,196,562, respectively. The net assets of Small Company
Growth Fund after the acquisition were $378,832,845.
NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
January 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 $ 928,819,957 $ 911,897,597
Dynamics Fund 2,766,715,059 1,445,049,983
INVESCO Endeavor Fund 198,516,700 81,727,486
Growth & Income Fund 143,304,779 67,008,252
S&P 500 Index Fund 20,885,816 253,545
Small Company Growth Fund 761,906,103 632,835,934
Value Equity Fund 130,094,446 193,802,150
There were no purchases or sales of U.S. Government securities.
NOTE 5 -- APPRECIATION AND DEPRECIATION. At January 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 $ 488,338,590 $ 37,761,414 $ 450,577,176
Dynamics Fund 1,670,685,676 119,847,566 1,550,838,110
INVESCO Endeavor Fund 87,333,103 8,347,341 78,985,762
Growth & Income Fund 25,484,937 3,298,985 22,185,952
S&P 500 Index Fund 16,696,240 6,206,031 10,490,209
Small Company Growth Fund 188,458,315 40,000,862 148,457,453
Value Equity Fund 82,874,867 17,112,852 65,762,015
NOTE 6 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of
the Funds' officers and directors are also officers and directors of IFG or IDI.
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 six months ended January 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:
<PAGE>
UNFUNDED
PENSION ACCRUED PENSION
FUND EXPENSES PENSION COSTS LIABILITY
- --------------------------------------------------------------------------------
Blue Chip Growth Fund $ 14,713 $ 14,268 $ 80,068
Dynamics Fund 25,986 0 82,102
INVESCO Endeavor Fund 741 0 0
Growth & Income Fund 694 0 0
S&P 500 Index Fund 563 0 137
Small Company Growth Fund 5,206 6,511 36,824
Value Equity Fund 5,503 6,212 31,594
The independent directors have contributed to a deferred fee agreement plan,
pursuant to which they have deferred receipt of a portion of the compensation
which they would otherwise have been paid as directors of selected INVESCO
Funds. The deferred amounts may be invested in the shares of any of the INVESCO
Funds, excluding the INVESCO Variable Investment Funds.
An affiliated company represents ownership by a Fund of at least 5% of the
voting securities of the issuer during the period, as defined in the Act. A
summary of the transactions during the six months ended January 31, 2000, in
which the issuer was an affiliate of the Fund, is as follows:
<TABLE>
<CAPTION>
REALIZED
PURCHASES SALES GAIN (LOSS)
--------------------------------------- ON INVESTMENTS VALUE AT
AFFILIATE SHARES COST SHARES COST SECURITIES 1/31/2000
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESCO ENDEAVOR FUND
SAP AG Sponsored
ADR Representive
1/12 Ord Shr 248,900 $10,506,796 -- -- -- $16,225,169
</TABLE>
No dividend income was received during the six months ended January 31, 2000.
NOTE 7 -- LINE OF CREDIT. Each Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. At January
31, 2000, there were no such borrowings.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31 JULY 31 YEAR ENDED AUGUST 31
- --------------------------------------------------------------------------------------------------------
2000 1999(a) 1998 1997 1996 1995 1994
UNAUDITED
<S> <C> <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 $ 5.28
=========================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss)(b) (0.02) 0.00 0.02 0.01 0.03 0.05 0.03
Net Gains on Securities
(Both Realized and
Unrealized) 1.94 2.11 0.69 1.39 0.95 0.49 0.11
=========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.92 2.11 0.71 1.40 0.98 0.54 0.14
=========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(c) 0.00 0.00 0.02 0.01 0.03 0.05 0.03
Distributions from
Capital Gains 0.76 0.51 1.60 0.77 0.84 0.50 0.05
=========================================================================================================
TOTAL DISTRIBUTIONS 0.76 0.51 1.62 0.78 0.87 0.55 0.08
=========================================================================================================
Net Asset Value --
End of Period $ 7.91 $ 6.75 $ 5.15 $ 6.06 $ 5.44 $ 5.33 $ 5.34
=========================================================================================================
TOTAL RETURN 29.27%(d) 42.06%(d) 13.42% 28.14% 20.23 12.05% 2.52%
RATIOS
Net Assets --
End of Period
($000 Omitted) $1,618,135 $1,232,908 $747,739 $709,220 $596,726 $501,285 $488,411
Ratio of Expenses
to Average Net
Assets 0.52%(d)(e) 1.03%(e)(f) 1.04%(e) 1.07%(e) 1.05%(e) 1.06% 1.03%
Ratio of Net
Investment Income
(Loss) to Average
Net Assets (0.26%)(d) (0.08%)(f) 0.37% 0.22% 0.64% 1.07% 0.47%
Portfolio Turnover Rate 65%(d) 134%(d) 153% 286% 207% 111% 63%
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income for the period ended July 31, 1999, aggregated less
than $0.01 on a per share basis.
(c) Distributions from net investment income for the six months ended January
31, 2000, and distributions in excess of net investment income for the
period ended July 31, 1999 and for the year ended August 31, 1995,
aggregated less than $0.01 on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
DYNAMICS FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31 JULY 31 YEAR ENDED APRIL 30
- ------------------------------------------------------------------------------------------------------------
2000 1999(a) 1999 1998 1997 1996 1995
UNAUDITED
<S> <C> <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 $ 10.15
===========================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss)(b) (0.02) 0.00 0.00 (0.05) (0.04) 0.02 0.03
Net Gains on Securities
(Both Realized and
Unrealized) 7.08 1.24 3.04 6.39 (0.19) 3.94 1.34
===========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 7.06 1.24 3.04 6.34 (0.23) 3.96 1.37
===========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(c) 0.00 0.00 0.00 0.00 0.00 0.02 0.03
Distributions from
Capital Gains 1.04 0.00 1.30 1.95 1.36 1.71 0.11
===========================================================================================================
TOTAL DISTRIBUTIONS 1.04 0.00 1.30 1.95 1.36 1.73 0.14
===========================================================================================================
Net Asset Value --
End of Period $ 25.41 $ 19.39 $ 18.15 $ 16.41 $ 12.02 $ 13.61 $ 11.38
===========================================================================================================
TOTAL RETURN 37.06%(d) 6.83%(d) 20.83% 56.42% (2.34%) 36.32% 13.57%
RATIOS
Net Assets --
End of Period
($000 Omitted) $5,095,351 $2,471,482 $2,044,321 $1,340,299 $762,396 $778,416 $421,600
Ratio of Expenses
to Average Net
Assets 0.47%(d)(e) 1.03%(e)(g) 1.05%(e) 1.08%(e) 1.16%(e) 1.14%(e) 1.20%(f)
Ratio of Net
Investment Income
(Loss) to Average
Net Assets (0.14%)(d) (0.32%)(g) (0.41%) (0.43%) (0.31%) 0.16% 0.33%(f)
Portfolio Turnover Rate 46%(d) 23%(d) 129% 178% 204% 196% 176%
</TABLE>
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the period ended July 31, 1999 and for the year ended April 30, 1999.
(c) Distributions in excess of net investment income for the year ended April
30, 1996, aggregated less than $0.01 on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Various expenses of the Fund were voluntarily absorbed by IFG for the year
ended April 30, 1995. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.22% and ratio of
net investment income to average net assets would have been 0.31%.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESCO ENDEAVOR FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 APRIL 30
- ---------------------------------------------------------------------------------
2000 1999(a)(b) 1999(c)
UNAUDITED
<S> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 16.61 $ 16.32 $ 10.00
=================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (0.07) (0.03) (0.03)
Net Gains on Securities (Both Realized
and Unrealized) 8.13 0.32 6.35
=================================================================================
TOTAL FROM INVESTMENT OPERATIONS 8.06 0.29 6.32
=================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 1.33 0.00 0.00
=================================================================================
Net Asset Value-- End of Period $ 23.34 $ 16.61 $ 16.32
=================================================================================
TOTAL RETURN 49.56%(d) 1.78%(d) 63.20%(d)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 309,561 $ 109,532 $ 72,592
Ratio of Expenses to Average Net
Assets(e) 0.72%(d) 1.49%(f) 1.43%(f)
Ratio of Net Investment Loss to
Average Net Assets (0.47%)(d) (0.83%)(f) (0.55%)(f)
Portfolio Turnover Rate 44%(d) 47%(d) 107%(d)
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) The per share information was computed using average shares.
(c) From October 28, 1998, commencement of investment operations, to April 30,
1999.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 APRIL 30
- ---------------------------------------------------------------------------------
2000 1999(a) 1999(b)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 15.37 $ 14.54 $ 10.00
=================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(c) (0.04) 0.00 0.00
Net Gains on Securities
(Both Realized and Unrealized) 3.44 0.83 5.22
=================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.40 0.83 5.22
=================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 1.04 0.00 0.68
=================================================================================
Net Asset Value-- End of Period $ 17.73 $ 15.37 $ 14.54
=================================================================================
TOTAL RETURN 22.50%(d) 5.71%(d) 53.07%(d)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 160,639 $ 61,316 $ 53,994
Ratio of Expenses to Average Net
Assets(e)(f) 0.74%(d) 1.52%(g) 1.52%(g)
Ratio of Net Investment Loss to
Average Net Assets(f) (0.31%)(d) (0.45%)(g) (0.25%)(g)
Portfolio Turnover Rate 61%(d) 46%(d) 121%(d)
(a) From May 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) From July 1, 1998, commencement of investment operations, to April 30, 1999.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
periods ended July 31, 1999 and April 30, 1999.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended January 31, 2000 and for the periods ended July 31, 1999 and
April 30, 1999. If such expenses had not been voluntarily absorbed, ratio of
expenses to average net assets would have been 0.75%, 1.75% (annualized) and
1.71% (annualized) respectively, and ratio of net investment loss to average
net assets would have been (0.32)%, (0.68%) (annualized) and (0.44%)
(annualized), respectively.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND -- INSTITUTIONAL CLASS
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 JULY 31
- ---------------------------------------------------------------------------------
2000 1999 1998(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 14.21 $ 12.01 $ 10.00
=================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.08 0.18 0.11
Net Gains on Securities
(Both Realized and Unrealized) 0.71 2.26 1.98
=================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.79 2.44 2.09
=================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.11 0.19 0.08
Distributions from Capital Gains 0.12 0.05 0.00
=================================================================================
TOTAL DISTRIBUTIONS 0.23 0.24 0.08
=================================================================================
Net Asset Value -- End of Period $ 14.77 $ 14.21 $ 12.01
=================================================================================
TOTAL RETURN(b) 5.56%(c) 20.40% 20.93%(c)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 4,744 $ 4,420 $ 3,259
Ratio of Expenses to Average
Net Assets(d)(e) 0.19%(c) 0.35% 0.46%(f)
Ratio of Net Investment Income
to Average Net Assets(e) 0.55%(c) 1.36% 1.96%(f)
Portfolio Turnover Rate(g) 0%(c) 2% 0%(c)
(a) From December 23, 1997, commencement of investment operations, through July
31, 1998.
(b) The applicable redemption fees are not included in the Total Return
calculation.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
(e) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended January 31, 2000, the year ended July 31, 1999 and the period
ended July 31, 1998. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 0.48%, 1.17% and
2.51% (annualized), respectively, and ratio of net investment income (loss)
to average net assets would have been 0.26%, 0.54% and (0.09%) (annualized),
respectively.
(f) Annualized
(g) Portfolio Turnover Rate calculated to less than 0.50% for the six months
ended January 31, 2000 and for the period ended July 31, 1998.
<PAGE>
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND -- INVESTOR CLASS
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JANUARY 31 JULY 31 JULY 31
- ---------------------------------------------------------------------------------
2000 1999 1998(a)
UNAUDITED
PER SHARE DATA
Net Asset Value -- Beginning of
Period $ 14.39 $ 12.14 $ 10.00
=================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.06 0.14 0.07
Net Gains on Securities
(Both Realized and Unrealized) 0.73 2.29 2.14
=================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.79 2.43 2.21
=================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.06 0.13 0.07
Distributions from Capital Gains 0.12 0.05 0.00
=================================================================================
TOTAL DISTRIBUTIONS 0.18 0.18 0.07
=================================================================================
Net Asset Value-- End of Period $ 15.00 $ 14.39 $ 12.14
=================================================================================
TOTAL RETURN(b) 5.47%(c) 20.09% 22.11%(c)
RATIOS
Net Assets-- End of Period ($000
Omitted) $ 84,641 $ 64,613 $ 15,065
Ratio of Expenses to Average Net
Assets(d)(e) 0.32%(c) 0.60% 0.62%(f)
Ratio of Net Investment Income to
Average Net Assets(e) 0.42%(c) 1.06% 1.52%(f)
Portfolio Turnover Rate(g) 0%(c) 2% 0%(c)
(a) From December 23, 1997, commencement of investment operations, through July
31, 1998.
(b) The applicable redemption fees are not included in the Total Return
calculation.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
(e) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended January 31, 2000, the year ended July 31, 1999 and the period
ended July 31, 1998. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 0.48%, 0.99% and
1.71% (annualized), respectively, and ratio of net investment income to
average net assets would have been 0.26%, 0.67% and 0.42% (annualized),
respectively.
(f) Annualized
(g) Portfolio Turnover Rate calculated to less than 0.50% for the six months
ended January 31, 2000 and for the period ended July 31, 1998.
<PAGE>
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31 JULY 31 YEAR ENDED MAY 31
- ----------------------------------------------------------------------------------------------------------
2000 1999(a) 1999 1998 1997 1996 1995
UNAUDITED
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 13.61 $ 12.08 $ 11.90 $ 12.82 $ 14.38 $ 9.37 $ 11.40
=========================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss)(b) (0.03) 0.00 0.00 (0.06) (0.07) (0.06) 0.04
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 6.20 1.53 1.35 2.56 (0.96) 5.25 0.46
=========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 6.17 1.53 1.35 2.50 (1.03) 5.19 0.50
=========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.00 0.00 0.00 0.04
Distributions from
Capital Gains 1.99 0.00 1.17 3.42 0.53 0.18 2.49
=========================================================================================================
TOTAL DISTRIBUTIONS 1.99 0.00 1.17 3.42 0.53 0.18 2.53
=========================================================================================================
Net Asset Value --
End of Period $ 17.79 $ 13.61 $ 12.08 $ 11.90 $ 12.82 $ 14.38 $ 9.37
=========================================================================================================
TOTAL RETURN 47.66%(c) 12.67%(c) 12.91% 22.65% (7.08%) 55.78% 4.98%
RATIOS
Net Assets --
End of Period
($000 Omitted) $894,127 $452,861 $318,109 $272,619 $294,259 $370,029 $153,727
Ratio of Expenses
to Average Net Assets(d) 0.67%(c) 1.50%(e)(f) 1.51%(e) 1.48%(e) 1.52%(e) 1.48%(e) 1.49%
Ratio of Net
Investment Income
(Loss) to Average
Net Assets(d) (0.25%)(c) (0.69%)(f) (0.58%) (0.42%) (0.55%) (0.78%) 0.41%
Portfolio Turnover Rate 119%(c) 41%(c) 203% 158% 216% 221% 228%
(a) From June 1, 1999 to July 31, 1999, the Fund's current fiscal year end.
(b) Net Investment Income (Loss) for the period ended July 31, 1999 and the year
ended May 31, 1999 aggregated less than $0.01 on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended January 31, 2000, the period ended July 31, 1999 and for the
years ended May 31, 1999, 1997 and 1995. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 0.67%, 1.62% (annualized), 1.59%, 1.54%, and 1.52%, respectively, and
ratio of net investment income (loss) to average net assets would have
been (0.25%), (0.81%) (annualized), (0.66%), (0.57%) and 0.38%, respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31 JULY 31 YEAR ENDED AUGUST 31
- ----------------------------------------------------------------------------------------------------
2000 1999(a) 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value --
Beginning of
Period $ 29.61 $ 25.68 $ 28.30 $ 22.24 $ 19.53 $ 18.12 $ 17.79
====================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.06 0.17 0.26 0.35 0.35 0.39 0.36
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) (1.54) 6.25 (0.43) 6.62 3.09 2.58 1.20
====================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS (1.48) 6.42 (0.17) 6.97 3.44 2.97 1.56
====================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.06 0.17 0.26 0.35 0.35 0.39 0.31
In Excess of Net
Investment Income(b) 0.00 0.00 0.00 0.00 0.00 0.00 0.04
Distributions from
Capital Gains 2.50 2.32 2.19 0.56 0.38 1.17 0.88
====================================================================================================
TOTAL DISTRIBUTIONS 2.56 2.49 2.45 0.91 0.73 1.56 1.23
====================================================================================================
Net Asset Value --
End of Period $ 25.57 $ 29.61 $ 25.68 $ 28.30 $ 22.24 $ 19.53 $ 18.12
====================================================================================================
TOTAL RETURN (5.12%)(c) 25.41%(c) (1.06%) 32.04% 17.77% 17.84% 9.09%
RATIOS
Net Assets --
End of Period
($000 Omitted) $292,055 $ 369,982 $ 349,984 $ 369,766 $200,046 $153,171 $111,850
Ratio of Expenses to
Average Net Assets(d) 0.66%(c)(e) 1.27%(e)(f) 1.15%(e) 1.04%(e) 1.01%(e) 0.97% 1.01%
Ratio of Net Investment
Income to Average
Net Assets(d) 0.22%(c) 0.63%(f) 0.86% 1.35% 1.64% 2.17% 1.80%
Portfolio Turnover Rate 40%(c) 22%(c) 48% 37% 27% 34% 53%
</TABLE>
(a) From September 1, 1998 to July 31, 1999, the Fund's current fiscal year end.
(b) Distributions in excess of net investment income for the period ended July
31, 1999 and for the year ended August 31, 1998 aggregated less than $0.01
on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended January 31, 2000, the period ended July 31, 1999 and the year
ended August 31, 1998. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 0.72%, 1.38%
(annualized) and 1.19%, respectively, and ratio of net investment income to
average net assets would have been 0.16%, 0.52% (annualized) and 0.82%,
respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is e any expense offset
arrangements.
(f) Annualized
<PAGE>
INVESCO FAMILY OF FUNDS
INVESTOR CLASS NEWSPAPER
FUND NAME FUND CODE TICKER SYMBOL ABBREVIATION
- --------------------------------------------------------------------------------
STOCK
Growth & Income 21 IVGIX Gro&Inc
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
INVESCO Endeavor 61 IVENX Endeavor
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund 23 ISPIX SP500II
- --------------------------------------------------------------------------------
BOND
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond 35 FTIFX TxFree
- --------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Equity Income 15 FIIIX EquityInc
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
SECTOR
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Real Estate Opportunity 42 IVSRX Realty
Technology 55 FTCHX Tech
Telecommunications 39 ISWCX Telecomm
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- --------------------------------------------------------------------------------
MONEY MARKET
U.S. Government Money Fund 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money Fund 40 FFRXX InvTaxFree
Treasurer's Money
Market Reserve 96 IMRXX INVESCOMMR
Treasurer's Tax-Exempt
Reserve 95 ITTXX INVESCOTTE
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES,
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 (R)
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: www.invesco.com
INVESCO Distributors, Inc.,(SM) Distributor
Post Office Box 173707
Denver, CO 80217-3707
This information must be preceded or accompanied by a current prospectus.
SEQ 9046 3/00
