SEMIANNUAL REPORT
December 31, 1995
INVESCO
INDUSTRIAL
INCOME
FUND,
INC.
A Smart Choice For
The Foundation
Of Your Portfolio
INVESCO FUNDS
<PAGE>
Economic Overview January 1996
1995 will long stand out as a banner year for U.S. investors. The S&P 500
achieved a total return of 37.46% for the 12 months ended 12/31/95, only the
fourth time in fifteen years the broad market returned over 25%. By other
measures, market results were even more exciting: The Dow Jones Industrial
Average broke 5000 for the first time in history, and fixed-income markets
followed suit, with the Lehman Government/Corporate Bond Index gaining 19.24%.1
This spectacular performance was influenced by a number of positive
economic factors. Inflation was low at a mere 2.5%, unemployment was down, and
growth in Gross Domestic Product slowed to apparently sustainable levels. In
addition, the Federal Reserve Board cut short-term interest rates in July and
December 1995, and by 0.25% in January 1996.
By year-end, however, the broad market expansion appeared to be slowing
down, with the S&P 500 growing just 1.94% in December.1 And in January the stock
market whipsawed in the wake of stalled federal budget negotiations.
Until a budget settlement is reached in Washington, it seems likely that
the market will remain volatile. However, we feel that budget approval will
ultimately restore the market to moderate growth levels, heralding the beginning
of a trend for both the U.S. stock and bond markets throughout 1996.
This year, the markets should get some help from slow, steady economic
growth, but earnings improvements almost certainly won't see the dramatic gains
enjoyed in 1995. In addition, although business investment is expected to be
lower in '96, U.S. companies should continue to enjoy expanded sales overseas.
Therefore, although we may see corrections in some sectors, we expect advances
in securities prices to be in the single-digit range for 1996.
/s/ R. Dalton Sim
- ------------------
R. Dalton Sim
Chairman and President
INVESCO Trust Company
Industrial Income Fund
Industrial Income Fund
Average Annualized Total Return
as of 12/31/952
1 year 27.33%
-----------------------------------
5 years 16.11%
-----------------------------------
10 years 14.56%
-----------------------------------
<PAGE>
For the one-year period ended 12/31/95, Industrial Income Fund had a total
return of 27.33%.2 This return was achieved in a portfolio made up of both
stocks and bonds. Therefore, this return is significantly higher than the Lehman
Government/Corporate Bond Index return of 19.24%, and is below the S&P 500
return of 37.46% for the same period.1
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Industrial Income Fund to the value of a $10,000
investment in the S&P 500 and Lehman Government/Corporate Bond Indexes,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the ten year period ended 12/31/95.
The line graph above represents the value of a $10,000 investment in
INVESCO Industrial Income Fund, plus reinvested dividends and capital gain
distributions, for the 10-year period ended 12/31/95.2
The chart and other total return figures cited reflect the portfolio's
operating expenses. However, the indexes do not have expenses which would, of
course, have lowered their performance.
Equity-income funds often rely solely on conservative, high-yielding
stocks to provide both growth and income to investors. By contrast, at year-end
Industrial Income Fund held almost 30% of its portfolio in bonds.
This combination of stock and bond investments allows the fund to pursue
its primary mission of providing high current income with the potential for
capital appreciation, yet remain defensive against potential equity market
downturns. In 1995, the fund provided income from dividends totaling $0.404 per
share.2
While the fund's reliance on bonds helps to offset risks, it can also
cause it to perform below the broad equity market's return over the short-term.
We saw this situation in the bull stock market of 1995. However, this strategy
has proven very effective over the long-term, as can be seen from the fact that
the fund has outperformed the S&P 500 for every fifteen-year period since its
inception.2
Graph: Portfolio Diversification by Value
This bar graph reflects the allocation of the Industrial Income Fund's
portfolio by value of net assets in Fixed Income, Capital Goods &
Construction, Consumer Cyclical, Consumer Staples, Energy, Technology,
Finance, Other Equity, and Net Cash & Short-Term for the periods ending
12/94, 6/95, and 12/95.
<PAGE>
Equity Strategy
With over 100 names in the portfolio, stocks are selected from major
companies with average capitalizations of $10 to $20 billion. Portfolio
allocations are presently diversified across various investment sectors, with
specific stocks chosen for their potential to benefit from global economic
growth, superior competitive positioning, excellent management, leadership
positions, strong balance sheets, and overall quality and liquidity.
Sector Analysis
Capital Goods. During the second half of the year, many cyclical issues
began to come under pressure as the market questioned the potential for
continued strength of corporate earnings. The fund capitalized on gains already
achieved in this sector; during the third quarter we sold holdings in many of
our capital goods stocks, such as Caterpillar Inc and Deere & Co, as price
targets were reached.
Energy. Integrated oil and gas companies such as Exxon Corp and Amoco Corp
seem poised to benefit from record cold winters combined with increased
worldwide demand for energy. These companies' diversification among a variety of
products and services tends to dampen their sensitivity to volatile oil and gas
pricing, while providing attractive growth opportunities over the long-term.
Finance. A combination of decreasing interest rates and synergies
associated with mergers and acquisitions bodes well for this sector. Companies
such as Chase Manhattan, whose merger with Chemical Bank was announced in
October, are well positioned to see continued growth within this environment.
Technology. While still representing about 7% of the equity portfolio, we
are mindful that in many cases high-priced technology stocks may be vulnerable
as the economy slows down. Therefore, we are positioning ourselves more
defensively in this industry.
Fixed-Income Strategy
Industrial Income's fixed-income segment is managed to pursue a strong
combination of income and capital appreciation. We seek this goal through a
unique "barbell" portfolio structure. More than half of the bonds are in
AAA-rated government securities, in an effort to provide the portfolio with
stability. The remainder is invested primarily in below-investment grade
corporate bonds, generating higher current income with the potential for capital
appreciation.
Bond Segment Analysis
Duration. The fund's average duration (excluding cash and equivalents) as
of 12/31/95 was 5.8 years, at the long end of its normal range of 4 to 6 years.
The increase has allowed the fund to maximize the capital appreciation that has
been achieved by longer securities during the recent bull market for bonds.
Treasury Bonds. The fund's AAA-rated government securities provide
Industrial Income with a strong measure of security, since their underlying
value is affected primarily by interest rate fluctuations.
<PAGE>
Graph: Fixed-Income Portfolio Quality
as of 12/31/95
This pie chart shows the allocation of fixed-income investments for each
of the following ratings categories: AAA/Government - 59.1%, AA and A -
1.8%, BBB - 4.9%, BB - 18.8%, B - 14.9%, Other - 0.5%.
Corporate Bonds. Recent market conditions have left investment grade
corporate bonds offering returns that are relatively unattractive in comparison
to Treasury certificates. Lower-rated high-yield bonds, on the other hand, have
presented significant opportunities for both growth and income.
We focus on a variety of opportunities for appreciation. One has been
cyclical companies with "near-death experiences." Having survived bankruptcy and
appearing to successfully restructure balance sheets and reduce debt, companies
such as USG Corp have seen ratings improvement and subsequent price
appreciation.
Special situations provide another growth prospect. For example,
Cablevision Industries held a below-investment grade rating, even after its
acquisition by Time Warner. When the ratings caught up with the acquisition,
significant appreciation was realized.
In addition to growth potential in the broad fixed-income market, we have
found that conditions within certain sectors present opportunities as well.
Cable television, telecommunications and broadcasting are currently attractive,
due to improving creditworthiness and takeover activity.
Looking Forward
We believe that our unique approach of combining a diversified
fixed-income segment with growth and income-oriented equity securities leaves
the fund well positioned to withstand potential market volatility in the face of
a slowing economy.
However, selection of individual securities will become even more
important in this environment, as we feel earnings growth will be more difficult
to come by. Therefore, the fund is concentrating on those companies and
industries that we expect can grow earnings or respond to special situations,
regardless of the economic environment.
<PAGE>
Fund Managers
Industrial Income Fund is co-managed by two INVESCO Trust
Company senior vice presidents. Industry veteran Charles P. Mayer
oversees the equity portion of the holdings. He began his investment
career in 1969, and previously managed a sizable equity portfolio
for Westinghouse Pension Investment Corporation. Mr. Mayer earned
his MBA from St. John's University and BA from St. Peter's College.
Donovan "Jerry" Paul manages the fund's fixed-income investments. He
earned his MBA from the University of Northern Iowa, as well as a BBA from the
University of Iowa. A Chartered Financial Analyst, Mr. Paul has more than 19
years of experience in the securities industry. He joined INVESCO in 1994;
previously, he was director of fixed-income research and a portfolio manager for
Stein, Roe & Farnham. Mr. Paul also manages INVESCO Select Income Fund and High
Yield Fund, as well as co-managing INVESCO Balanced Fund.
These managers are assisted by Albert M. Grossi, who joined
INVESCO in 1995 from Westinghouse Pension Investments Corporation,
where he was portfolio manager/senior analyst. He has both a BA and
MBA from Rutgers University. Mr. Grossi also manages INVESCO
Worldwide Capital Goods Fund.
1 The S&P 500 and Dow Jones Industrial Average are unmanaged indexes considered
representative of the performance of the broad U.S. stock market. The Lehman
Government/Corporate Index is an unmanaged index illustrating the broad
fixed-income market.
2 Total return assumes reinvestment of dividends and capital gain distributions
for the periods indicated. Investment return and principal value will fluctuate
so that, when redeemed, an investor's shares may be worth more or less than when
purchased. The 15-year periods in which the fund outperformed the S&P 500 (21 in
all) are based on total return from 1/1/61-12/31/75, to 1/1/81-12/31/95. Of
course, past performance is not a guarantee of future results.
<PAGE>
INVESCO Industrial Income Fund, Inc.
Ten Largest Common Stock Holdings
December 31, 1995
Description Value
- ---------------------------------------------
US West Communications $78,650,000
AT&T Corp 77,700,000
Bank of New York 58,500,000
General Electric 57,600,000
Kansas City Southern Industries 57,507,750
Exxon Corp 56,087,500
Lockheed Martin 55,300,000
International Business Machines 55,050,000
Eastman Kodak 53,600,000
Pharmacia & Upjohn 53,237,656
Composition of holdings is subject to change.
<PAGE>
INVESCO Industrial Income Fund, Inc.
Statement of Investment Securities
December 31, 1995
UNAUDITED
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
COMMON STOCKS 68.09%
AEROSPACE & DEFENSE 3.58%
Boeing Co 500,000 $39,187,500
General Motors Class H 600,000 29,475,000
Lockheed Martin 700,000 55,300,000
McDonnell Douglas 300,000 27,600,000
---------------
151,562,500
---------------
AUTOMOBILE RELATED 2.40%
Borg-Warner Automotive 365,600 11,699,200
Chrysler Corp 425,000 23,534,375
Cummins Engine 300,000 11,100,000
Eaton Corp 600,000 32,175,000
Ford Motor 800,000 23,200,000
---------------
101,708,575
---------------
BANKING 4.82%
Bank of New York 1,200,000 58,500,000
BankAmerica Corp 300,000 19,425,000
Chase Manhattan 800,000 48,500,000
Citicorp 400,000 26,900,000
First Chicago NBD 743,000 29,348,500
Mellon Bank 400,000 21,500,000
---------------
204,173,500
---------------
BUILDING & CONSTRUCTION RELATED 0.68%
Fluor Corp 200,000 13,200,000
Masco Corp 500,000 15,687,500
---------------
28,887,500
---------------
CABLE TELEVISION 0.43%
Comcast Corp Special Class A 1,000,000 18,187,500
---------------
CHEMICALS 0.61%
Olin Corp 350,000 25,987,500
---------------
COMPUTER RELATED 1.50%
Hewlett-Packard Co 100,000 8,375,000
International Business Machines 600,000 55,050,000
---------------
63,425,000
---------------
<PAGE>
DIVERSIFIED COMPANIES 6.10%
AlliedSignal Inc 1,000,000 47,500,000
du Pont (E I) de Nemours 600,000 41,925,000
General Electric 800,000 57,600,000
Hanson PLC Sponsored ADR 600,000 9,150,000
Kansas City Southern Industries 1,257,000 57,507,750
Minnesota Mining & Manufacturing 200,000 13,250,000
Tenneco Inc 400,000 19,850,000
Whitman Corp 500,000 11,625,000
---------------
258,407,750
---------------
ELECTRICAL EQUIPMENT 0.92%
Honeywell Inc 800,000 38,900,000
---------------
ELECTRONICS 1.82%
Harris (Del) Corp 500,000 27,312,500
Intel Corp 400,000 22,700,000
Nokia Corp Sponsored ADR
Representing Ord A Shrs~ 700,000 27,212,500
---------------
77,225,000
---------------
ENGINEERING 0.60%
Foster Wheeler 600,000 25,500,000
---------------
FINANCE RELATED 1.47%
American Express 400,000 16,550,000
Block (H & R) Inc 800,000 32,400,000
Household International 225,000 13,303,125
---------------
62,253,125
---------------
FOOD PRODUCTS & BEVERAGES 4.36%
Anheuser-Busch Cos 300,000 20,062,500
CPC International 400,000 27,450,000
General Mills 600,000 34,650,000
Heinz (H J) Co 1,125,000 37,265,625
Kellogg Co 200,000 15,450,000
Quaker Oats 400,000 13,800,000
Seagram Co Ltd 1,044,000 36,148,500
---------------
184,826,625
---------------
FUNERAL SERVICES 0.52%
Service Corp International 500,000 22,000,000
---------------
HOTELS 1.16%
Hilton Hotels 800,000 49,200,000
---------------
INSURANCE 1.05%
Allmerica Property & Casualty 500,000 13,500,000
General Re 200,000 31,000,000
---------------
44,500,000
---------------
<PAGE>
MACHINERY 0.86%
Ingersoll-Rand Co 550,000 19,318,750
TRINOVA Corp 600,000 17,175,000
---------------
36,493,750
---------------
MEDICAL EQUIPMENT & SUPPLIES 0.71%
Becton Dickinson 400,000 30,000,000
---------------
MEDICAL PRODUCTS 0.74%
Baxter International 750,000 31,406,250
---------------
MEDICAL RELATED - DRUGS 4.29%
American Home Products 500,000 48,500,000
Merck & Co 400,000 26,300,000
Novo-Nordisk A/S ADR 859,172 29,211,848
Pharmacia & Upjohn 1,373,875 53,237,656
Warner-Lambert Co 250,000 24,281,250
---------------
181,530,754
---------------
MINING 1.27%
ASARCO Inc 800,000 25,600,000
Newmont Mining 624,050 28,238,262
---------------
53,838,262
---------------
OFFICE EQUIPMENT 0.97%
Xerox Corp 300,000 41,100,000
---------------
OIL & GAS RELATED 8.04%
Amoco Corp 670,000 48,156,250
Apache Corp 500,000 14,750,000
Atlantic Richfield 400,000 44,300,000
Chevron Corp 500,000 26,250,000
Dresser Industries 1,000,000 24,375,000
Exxon Corp 700,000 56,087,500
Halliburton Co 550,000 27,843,750
Royal Dutch Petroleum 5 Gldr Shrs 250,000 35,281,250
Schlumberger Ltd 450,000 31,162,500
Sonat Inc 500,000 17,812,500
Unocal Corp 500,000 14,562,500
---------------
340,581,250
---------------
PAPER & PAPER PRODUCTS 0.36%
International Paper 400,000 15,150,000
---------------
PHOTO EQUIPMENT 1.27%
Eastman Kodak 800,000 53,600,000
---------------
PRINTING & PUBLISHING 1.09%
Donnelley (R R) & Sons 600,000 23,625,000
Time Warner 600,000 22,725,000
---------------
46,350,000
---------------
<PAGE>
REAL ESTATE RELATED 2.01%
Health & Retirement Properties Trust REIT 1,600,000 26,000,000
Health Care Property Investors REIT 550,000 19,318,750
Healthcare Realty Trust 400,000 9,200,000
Meditrust SBI REIT 500,000 17,437,500
Omega Healthcare Investors 500,000 13,312,500
---------------
85,268,750
---------------
RECREATION PRODUCTS & SERVICES 0.84%
Disney (Walt) Co 600,000 35,400,000
---------------
RETAIL 2.62%
Albertson's Inc 400,000 13,150,000
Limited Inc 1,000,000 17,375,000
May Department Stores 800,000 33,800,000
Melville Corp 500,000 15,375,000
Sears Roebuck & Co 800,000 31,200,000
---------------
110,900,000
---------------
SAVINGS & LOAN 0.35%
Charter One Financial 480,000 14,700,000
---------------
TELECOMMUNICATIONS 1.83%
AT&T Corp 1,200,000 77,700,000
---------------
TOBACCO 1.17%
Philip Morris 550,000 49,775,000
---------------
TRANSPORTATION 1.98%
Conrail Inc 400,000 28,000,000
Norfolk Southern 300,000 23,812,500
Overseas Shipholding 300,000 5,700,000
Union Pacific 400,000 26,400,000
---------------
83,912,500
---------------
UTILITIES 5.67%
Bell Atlantic 600,000 40,125,000
GTE Corp 600,000 26,400,000
KN Energy 336,900 9,812,213
NYNEX Corp 800,000 43,200,000
U S WEST Communications Group 2,200,000 78,650,000
U S WEST Media Group 2,200,000 41,800,000
---------------
239,987,213
---------------
TOTAL COMMON STOCKS
(Cost $2,292,375,657 ) 2,884,438,304
---------------
FIXED INCOME SECURITIES 27.66%
US Government Obligations 8.43%
US Treasury Bonds
7.625%, 2/15/2025 100,000,000 122,187,500
<PAGE>
US Treasury Notes
6.750%, 4/30/2000 35,000,000 36,837,500
6.500%, 5/15/2005 67,000,000 71,396,875
5.875%, 2/15/2004 75,000,000 76,523,325
5.375%, 11/30/1997 50,000,000 50,156,250
---------------
TOTAL US GOVERNMENT
OBLIGATIONS
(Cost $341,211,996) 357,101,450
---------------
US Government Agency Obligations 7.97%
Federal Home Loan Mortgage, Deb
6.450%, 10/20/1999 3,000,000 3,030,744
Federal Home Loan Mortgage Gold Pool
8.000%, 12/1/2024 18,592,777 19,274,183
7.500%, 9/1/2024 9,258,159 9,493,399
7.000%, 6/1/2024 9,065,279 9,152,569
6.500%, 7/1/2008 35,306,488 35,535,592
6.500%, 8/1/2008 7,927,200 7,978,640
6.500%, 6/1/2010 47,460,430 47,768,401
6.500%, 8/1/2010 10,032,985 10,089,260
Federal National Mortgage Association,
Gtd Mortgage Pass-Through Certificates
7.500%, 6/1/2024 14,568,067 14,924,825
6.500%, 7/1/2008 40,086,862 40,318,524
6.000%, 10/1/2009 22,962,314 22,737,949
Government National Mortgage Association I,
Modified Pass-Through Certificates
7.500%, 10/15/2023 17,700,496 18,213,084
7.000%, 12/15/2023 48,700,964 49,345,229
Student Loan Marketing Association,
Notes, Floating
5.260%, 1/13/1999 12,750,000 12,736,510
5.260%, 2/8/1999 37,250,000 37,217,034
---------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $330,206,191) 337,815,943
---------------
Corporate Bonds 11.26%
AUTOMOBILE RELATED 0.07%
Auburn Hills Trust, Deb
Gtd Exchangeable Certificates
12.000%, 5/1/2020 2,000,000 3,120,870
---------------
BANKING 0.16%
Sovereign Bancorp
Medium-Term Sub Notes
8.000%, 3/15/2003 6,500,000 6,832,079
---------------
BROADCASTING 1.44%
Allbritton Communications
Sr Sub Deb, 11.500%, 8/15/2004 13,350,000 14,034,187
Benedek Broadcasting Sr Secured Notes
11.875%, 3/1/2005 8,400,000 8,904,000
EZ Communications
Sr Sub Notes, 9.750%, 12/1/2005 3,250,000 3,266,250
Granite Broadcasting
Sr Sub Deb, 12.750%, 9/1/2002 11,550,000 12,820,500
Sr Sub Notes, Series A 10.375%, 5/15/2005 4,000,000 4,100,000
<PAGE>
Outlet Broadcasting, Sr Sub Notes,
10.875%, 7/15/2003 2,775,000 3,080,250
Paramount Communications Sub Deb
Series A, 7.000%, 7/1/2003 7,500,000 7,275,000
Series B, 7.000%, 7/1/2003 3,140,000 3,045,800
SCI Television, Sr Secured Notes
11.000%, 6/30/2005 4,290,000 4,504,500
---------------
61,030,487
---------------
BUILDING & CONSTRUCTION RELATED 0.07%
USG Corp, Sr Notes
8.500%, 8/1/2005 3,000,000 3,097,500
---------------
CABLE TELEVISION 2.32%
Cablevision Industries, Sr Deb
Series B, 9.250%, 4/1/2008 21,300,000 23,004,000
Century Communications, Sr Sub
Notes, 11.875%, 10/15/2003 5,000,000 5,387,500
Continental Cablevision, Sr Notes^
8.300%, 5/15/2006 7,000,000 7,000,000
Diamond Cable Communications
PLC, Sr Discount Step-Up Notes
Zero Coupon^^, 12/15/2005 19,000,000 11,210,000
Jones Intercable, Sr Sub Deb
11.500%, 7/15/2004 4,000,000 4,420,000
10.500%, 3/1/2008 7,403,000 8,050,763
Marcus Cable LP/Marcus Cable
Capital II, Sr Sub Gtd
Discount Step-Up Notes
Zero Coupon^^, 12/15/2005 12,600,000 8,568,000
Summit Communications Group
Sr Sub Deb, 10.500%, 4/15/2005 6,100,000 6,771,000
Viacom Inc, Sub Deb
8.000%, 7/7/2006 19,800,000 20,197,584
Videotron Holdings PLC
Sr Discount Step-Up Notes
Zero Coupon^^, 8/15/2005 5,725,000 3,549,500
---------------
98,158,347
---------------
CHEMICALS 0.35%
Rexene Corp, Sr Notes
11.750%, 12/1/2004 7,750,000 8,156,875
SIFTO Canada, Gtd Sr Secured
Notes, 8.500%, 7/15/2000 7,000,000 6,773,921
---------------
14,930,796
---------------
COMPUTER RELATED 0.05%
CONVEX Computer, Conv Sub Deb
6.000%, 3/1/2012 2,335,000 2,095,663
---------------
DIVERSIFIED COMPANIES 0.14%
Figgie International, Sr Notes
9.875%, 10/1/1999 6,105,000 6,089,738
---------------
FINANCE RELATED 0.35%
Associates Corp of North America
Sr Deb, 8.550%, 7/15/2009 10,000,000 11,926,560
<PAGE>
RAPP International Finance Co BV
Gtd Secured Notes
11.500%, 12/15/2000 3,000,000 2,981,250
---------------
14,907,810
---------------
HEALTH CARE RELATED 0.20%
Tenet Healthcare
Sr Notes, 8.625%, 12/1/2003 5,450,000 5,749,750
Sr Sub Notes, 10.125%, 3/1/2005 2,500,000 2,768,750
---------------
8,518,500
---------------
INSURANCE 0.26%
New England Mutual Life Insurance
Surplus Notes^ 7.875%, 2/15/2024 5,000,000 5,181,820
Torchmark Corp, Deb 8.250%, 8/15/2009 5,000,000 5,767,285
---------------
10,949,105
---------------
OIL & GAS RELATED 0.67%
Gulf Canada Resources Ltd
Sr Sub Deb, 9.250%, 1/15/2004 6,550,000 6,783,566
Louis Dreyfus Natural Gas
Sr Sub Notes, 9.250%, 6/15/2004 5,000,000 5,400,000
NorAm Energy, Deb 10.000%, 11/15/2019 6,000,000 6,851,370
TransTexas Gas, Sr Secured Notes
11.500%, 6/15/2002 5,000,000 5,162,500
Trident NGL, Sub Notes 10.250%, 4/15/2003 3,900,000 4,309,500
---------------
28,506,936
---------------
PAPER & PAPER PRODUCTS 0.81%
Crown Paper, Sr Sub Notes 11.000%, 9/1/2005 6,000,000 5,250,000
Gaylord Container
Sr Notes, 11.500%, 5/15/2001 3,000,000 3,090,000
Sr Sub Discount Step-Up Deb
Zero Coupon^^, 5/15/2005 7,950,000 7,791,000
Quno Corp, Sr Notes 9.125%, 5/15/2005 4,350,000 4,393,500
Tembec Finance, Gtd Sr Notes
9.875%, 9/30/2005 8,500,000 8,372,500
Williamhouse-Regency of Delaware
Sr Sub Notes^ 13.000%, 11/15/2005 5,000,000 5,187,500
---------------
34,084,500
---------------
PRINTING & PUBLISHING 0.63%
American Media Operations Sr Sub Notes
11.625%, 11/15/2004 6,000,000 6,030,000
News America Holdings Deb,
8.500%, 2/23/2025 5,725,000 6,626,195
Notes, 8.250%, 8/10/2018 4,000,000 4,363,448
Sr Notes, 8.500%, 2/15/2005 5,900,000 6,648,887
Valassis Inserts, Sr Sub Notes
9.375%, 3/15/1999 3,000,000 3,062,721
---------------
26,731,251
---------------
<PAGE>
RECREATION PRODUCTS
& SERVICES 0.70%
Ballys Casino Holdings Sr Discount Notes
Zero Coupon^^, 6/15/1998 7,895,000 6,316,000
Empress River Casino Finance
Gtd Sr Notes, 10.750%, 4/1/2002 6,400,000 6,528,000
Hollywood Casino Gtd Sr Secured Notes
12.750%, 11/1/2003 3,000,000 2,745,000
MGM Grand Hotel Finance
1st Mortgage Notes
12.000%, 5/1/2002 6,025,000 6,574,781
United Artists Theatre Circuit
Sr Secured Notes, Series B
11.500%, 5/1/2002 7,175,000 7,641,375
---------------
29,805,156
---------------
RETAIL 0.53%
Revco (D S) Inc, Sr Notes
9.125%, 1/15/2000 11,755,000 12,695,400
Samsonite Corp, Sr Sub Notes
Series B, 11.125%, 7/15/2005 3,000,000 2,940,000
TLC Beatrice International Holdings
Sr Secured Notes 11.500%, 10/1/2005 6,900,000 6,813,750
---------------
22,449,150
---------------
SAVINGS & LOAN 0.36%
Western Financial Savings Bank
Sub Capital Deb 8.500%, 7/1/2003 14,000,000 14,997,850
---------------
TELECOMMUNICATIONS 0.85%
Centennial Cellular, Sr Notes
8.875%, 11/1/2001 10,480,000 10,296,600
Comcast Cellular Sr Participation Notes
Series A Zero Coupon^^, 3/5/2000 3,000,000 2,302,500
Series B Zero Coupon^^, 3/5/2000 6,000,000 4,605,000
Lenfest Communications
Sr Secured Notes 8.375%, 11/1/2005 8,900,000 8,900,000
Mobile Telecommunication Technologies,
Sr Sub Discount Notes, 13.500%, 12/15/2002 6,000,000 6,660,000
MobileMedia Corp
Sr Sub Notes, 9.375%, 11/1/2007 3,000,000 3,090,000
---------------
35,854,100
---------------
TOBACCO 0.12%
RJR Nabisco, Notes
8.750%, 8/15/2005 5,000,000 5,124,700
---------------
TRANSPORTATION 0.92%
Delta Air Lines Equipment Trust Certificates
Series 1992E, 9.300%, 1/2/2010 4,175,000 4,931,961
Series 1992F, 9.300%, 1/2/2011 4,585,000 5,416,297
Overseas Shipholding Group Deb,
8.750%, 12/1/2013 8,000,000 8,525,344
Notes, 8.000%, 12/1/2003 2,950,000 3,043,562
<PAGE>
Southern Pacific Railroad
Sr Notes, 9.375%, 8/15/2005 11,840,000 12,876,000
Stena AB, Sr Notes 10.500%, 12/15/2005 4,000,000 4,080,000
---------------
38,873,164
---------------
UTILITIES 0.26%
Commonwealth Edison, 1st Mortgage
Series 16, 6.375%, 10/1/1998 5,000,000 4,998,820
First PV Funding, Lease Oblig
Series 1986B, 8.950%, 1/15/1997 5,755,000 5,781,743
---------------
10,780,563
---------------
TOTAL CORPORATE BONDS
(Cost $462,193,456) 476,938,265
---------------
TOTAL FIXED INCOME SECURITIES
(Cost $1,133,611,643) 1,171,855,658
---------------
OTHER SECURITIES 0.08%
TELECOMMUNICATIONS 0.08%
American Communications Services Units^
(Each unit consists of one
$1,000 face amount, Sr Discount
Step-Up Note, Zero Coupon^^
11/1/2005 and one wrnt to buy
12,860 shrs of cmn stock)
(Cost $3,274,927) 6,000,000 3,315,000
---------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 4.17%
FINANCE RELATED 4.17%
Associates Corp of North America
5.950%, 1/2/1996 8,022,000 8,022,000
Chevron Oil Finance
5.900%, 1/4/1996 29,085,000 29,085,000
5.680%, 1/3/1996 38,956,000 38,956,000
General Electric Capital
5.900%, 1/2/1996 29,084,000 29,084,000
5.900%, 1/4/1996 28,603,000 28,603,000
5.800%, 1/3/1996 14,500,000 14,500,000
Sears Roebuck Acceptance
5.830%, 1/8/1996 28,603,000 28,603,000
---------------
TOTAL SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER
(Cost $176,853,000) 176,853,000
---------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $3,606,115,227)
(Cost for Income Tax Purposes $3,606,343,741) 4,236,461,962
===============
~ Security is an affiliated company (see Note 5).
* Security is non-income producing.
^^ Step up bonds are obligations which increase the interest payment rate at
specific points in time. Rate shown reflects current rate which may step up at a
future date.
^ The following are restricted securities at December 31, 1995:
Value as
Acquisition Acquisition % of
Security Name Date(s) Cost Net Assets
- --------------------------------------------------------------------------------
American Communications Services,
Units 11/19/95 $ 4,816,350 0.08%
Continental Cablevision, Sr Notes,
8.300%, 5/15/2006 12/19/95 6,942,500 0.16
New England Mutual Life
Insurance Surplus Notes
7.875%, 2/15/2024 8/29/95 4,816,350 0.12
Williamhouse-Regency of
Delaware, Sr Sub Notes,
13.000%, 11/15/2005 11/15/95 6,000,000 0.12
-------
0.48%
=======
See Notes to Financial Statements
<PAGE>
INVESCO Industrial Income Fund, Inc.
Statement of Assets and Liabilities
December 31, 1995
UNAUDITED
ASSETS
Investment Securities at Value
(Cost $3,606,115,227) $4,236,461,962
Cash 1,015,966
Receivables:
Investment Securities Sold 11,389,627
Fund Shares Sold 6,797,103
Dividends and Interest 25,906,156
Prepaid Expenses and Other Assets 225,237
---------------
TOTAL ASSETS 4,281,796,051
---------------
LIABILITIES
Payables:
Distributions to Shareholders 6,095,552
Investment Securities Purchased 2,959,148
Fund Shares Repurchased 12,917,540
Accrued Distribution Expenses 3,440,981
Accrued Expenses and Other Payables 291,210
---------------
TOTAL LIABILITIES 25,704,431
---------------
Net Assets at Value $ 4,256,091,620
===============
NET ASSETS
Paid-in Capital* $ 3,548,833,354
Accumulated Undistributed Net Investment Income 1,100,888
Accumulated Undistributed Net Realized Gain
on Investment Securities and Foreign
Currency Transactions 75,810,643
Net Appreciation of Investment Securities and
Foreign Currency Transactions 630,346,735
---------------
Net Assets at Value $ 4,256,091,620
===============
Net Asset Value, Offering and Redemption
Price per Share $ 12.72
=======
* The Fund has one billion authorized shares of common stock, par value of $1.00
per share, of which 334,681,323 shares were outstanding at December 31, 1995.
See Notes to Financial Statements
<PAGE>
INVESCO Industrial Income Fund, Inc.
Statement of Operations
Six Months Ended December 31, 1995
UNAUDITED
INVESTMENT INCOME
INCOME
Dividends $37,289,515
Interest 48,181,777
Foreign Taxes Withheld (150,490)
---------------
TOTAL INCOME 85,320,802
---------------
EXPENSES
Investment Advisory Fees 10,639,730
Distribution Expenses 5,187,537
Transfer Agent Fees 2,717,944
Administrative Fees 316,252
Custodian Fees and Expenses 322,009
Directors' Fees and Expenses 116,562
Professional Fees and Expenses 89,227
Registration Fees and Expenses 74,085
Reports to Shareholders 344,399
Other Expenses 150,661
---------------
TOTAL EXPENSES 19,958,406
Fees and Expenses Absorbed by Investment Adviser (562,686)
Fees and Expenses Paid Indirectly (171,810)
---------------
NET EXPENSES 19,223,910
---------------
NET INVESTMENT INCOME 66,096,892
---------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 136,367,980
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 206,338,494
---------------
NET GAIN ON INVESTMENT SECURITIES 342,706,474
---------------
Net Increase in Net Assets from Operations $408,803,366
===============
See Notes to Financial Statements
<PAGE>
INVESCO Industrial Income Fund, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
December 31 June 30
---------------------------------------
1995 1995
UNAUDITED
OPERATIONS
<S> <C> <C>
Net Investment Income $66,096,892 $140,289,025
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 136,367,980 52,677,597
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 206,338,494 336,508,408
---------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 408,803,366 529,475,030
---------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (66,243,220) (140,427,579)
Net Realized Gain on Investment Securities (77,504,419) (180,471,498)
---------------------------------------
TOTAL DISTRIBUTIONS (143,747,639) (320,899,077)
---------------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 335,592,013 767,808,162
Reinvestment of Distributions 135,394,498 301,417,968
---------------------------------------
470,986,511 1,069,226,130
Amounts Paid for Repurchases of Shares (489,559,527) (1,181,514,849)
---------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS (18,573,016) (112,288,719)
---------------------------------------
Total Increase in Net Assets 246,482,711 96,287,234
NET ASSETS
Beginning of Period 4,009,608,909 3,913,321,675
---------------------------------------
End of Period (Including Accumulated
Undistributed Net Investment Income of
$1,100,888 and $1,916,689, respectively) $4,256,091,620 $4,009,608,909
=======================================
FUND SHARE TRANSACTIONS
Shares Sold 26,929,495 67,824,580
Shares Issued from Reinvestment
of Distribution 10,699,379 27,888,096
---------------------------------------
37,628,874 95,712,676
Shares Repurchased (39,381,502) (105,096,248)
---------------------------------------
Net Decrease in Fund Shares (1,752,628) (9,383,572)
=======================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Industrial Income Fund, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO
Industrial Income Fund, Inc. (the "Fund"), a Maryland Corporation, is registered
under the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company. The Fund is an equity income fund that seeks the
best possible current income. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION - Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales price
in the market where such securities are primarily traded. If last sales prices
are not available, securities are valued at the highest closing bid price
obtained from one or more dealers making a market for such securities or by a
pricing service approved by the Fund's board of directors.
Debt securities are valued at evaluated bid prices as determined by a
pricing service approved by the Fund's board of directors. If evaluated bid
prices are not available, debt securities are valued by averaging the bid prices
obtained from dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith by
the Fund's board of directors. Restricted securities are valued in accordance
with 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.
B. 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 and original issue discount, is
recorded on the accrual basis. Discounts 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 Fund may have elements of risk due to concentrated investments in
foreign issuers located in a specific country. Such concentrations 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
investments includes fluctuations from currency exchange rates and fluctuations
in market value.
Investments in securities of governmental agencies may only be guaranteed
by the respective agency's limited authority to borrow from the U.S. Government
and may not be guaranteed by the full faith and credit of the United States.
<PAGE>
Restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded companies.
Lack of a secondary market and resale restrictions may result in the inability
of the Fund to sell a security at a fair price and may substantially delay the
sale of the security which the Fund seeks to sell. In addition, these securities
may exhibit greater price volatility than securities for which secondary markets
exist.
C. 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.
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.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and
distributions to shareholders are recorded by the Fund on the ex
dividend/distribution date. The Fund distributes net realized capital gains, if
any, to its shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments for mortgage-backed securities, market discounts, foreign currency
transactions, nontaxable dividends, net operating losses and expired capital
loss carryforwards.
E. EXPENSES - Under an agreement between the Fund and the Fund's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by the
Custodian from any temporarily uninvested cash. Such credits are included in
Fees and Expenses Paid Indirectly in the Statement of Operations.
NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group,
Inc. ("IFG") serves as the Fund's investment adviser. As compensation for its
services to the Fund, 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 0.60% on the first $350 million of average net assets; reduced to 0.55%
on the next $350 million of average net assets; and 0.50% on average net assets
in excess of $700 million. Effective October 15, 1992, IFG voluntarily agreed to
waive a portion of its fee which exceeds 0.45% of average net assets in excess
of $2 billion. In addition, effective October 21, 1993, IFG voluntarily agreed
to waive a portion of its fee which exceeds 0.40% of average net assets in
excess of $4 billion.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of the
Fund are made by ITC. Fees for such sub-advisory services are paid by IFG.
In accordance with an Administrative Agreement, the Fund pays IFG an annual
fee of $10,000, plus an additional amount computed at an annual rate of 0.015%
of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG receives a transfer agent fee at an annual rate of $14.00 per
shareholder account, or per participant in an omnibus account. 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.
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
reimbursement of marketing and advertising expenditures to IFG (the
"Distributor") to a maximum of 0.25% of average annual net assets. Amounts
accrued by the Fund are available to reimburse the Distributor for actual
expenditures incurred within a rolling twelve-month period. For the six months
ended December 31, 1995, the Fund paid the Distributor $3,324,595 for
reimbursement of expenses incurred.
<PAGE>
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended December 31, 1995, the aggregate cost of purchases and proceeds from sales
of investment securities (excluding all U.S. Government securities and
short-term securities) were $1,068,022,562 and $1,247,674,115, respectively.
For the six months ended December 31, 1995, the aggregate cost of purchases
and proceeds from sales of U.S. Government securities were $253,902,019 and
$167,472,247, respectively.
NOTE 4 - APPRECIATION AND DEPRECIATION. At December 31, 1995, the gross
appreciation of securities in which there was an excess of value over tax cost
amounted to $667,861,131 and the gross depreciation of securities in which there
was an excess of tax cost over value amounted to $37,742,910 resulting in net
appreciation of $630,118,221.
NOTE 5 - TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of
the Fund's officers and directors are also officers and directors of IFG or ITC.
The Fund has adopted an unfunded noncontributory defined benefit pension
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 25% of the retainer fee at
the time of retirement.
Pension expenses for the six months ended December 31,1995, included in
Directors' Fees and Expenses in the Statement of Operations were $23,556.
Unfunded accrued pension costs of $108,817 and pension liability of $212,032 are
included in Prepaid Expenses and Accrued Expenses, respectively, in the
Statement of Assets and Liabilities.
An affiliated company represents ownership by the 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 December 31, 1995, in
which the issuer was an affiliate of the Fund, is as follows:
<PAGE>
<TABLE>
<CAPTION>
Purchases Sales Realized
------------------ ------------------ Dividend Gain on Value at
Affiliate Shares Cost Shares Cost Income Investments 12/31/95
- -------------------------------------------------------------------------------------------------------------------------------
Nokia Corp Sponsored ADR
<S> <C> <C> <C> <C> <C> <C> <C>
Representing Ord A Shrs 700,000 $37,996,295 - - - - $27,212,500
</TABLE>
NOTE 6 - LINE OF CREDIT. The 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 redeem investors shares. The LOC permits borrowings to a
maximum of 5% of the Net Assets at Value of the Fund. The Fund agrees to pay
annual fees and interest on the unpaid principal balance based on prevailing
market rates as defined in the agreement. For the fiscal year ended December 31,
1995, there were no such borrowings.
<PAGE>
INVESCO Industrial Income Fund, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
December 31 Year Ended June 30
-------------- -----------------------------------------------------------------
1995 1995 1994 1993 1992 1991
UNAUDITED
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $11.92 $11.32 $11.53 $10.67 $9.74 $9.39
-------------- -----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.20 0.42 0.36 0.31 0.28 0.36
Net Gains on Securities
(Both Realized and Unrealized) 1.04 1.14 0.02 1.33 1.38 0.81
-------------- -----------------------------------------------------------------
Total from Investment
Operation 1.24 1.56 0.38 1.64 1.66 1.17
-------------- -----------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.20 0.42 0.36 0.32 0.29 0.34
In Excess of Net Investment Income 0.00 0.00 0.11 0.00 0.00 0.00
Distributions from Capital Gains 0.24 0.54 0.12 0.46 0.44 0.48
-------------- -----------------------------------------------------------------
Total Distributions 0.44 0.96 0.59 0.78 0.73 0.82
-------------- -----------------------------------------------------------------
Net Asset Value -
End of Period $12.72 $11.92 $11.32 $11.53 $10.67 $9.74
============== =================================================================
TOTAL RETURN 10.44%* 14.79% 3.24% 15.66% 17.04% 13.06%
RATIOS
Net Assets -End of Period
($000 Omitted) $4,256,092 $4,009,609 $3,913,322 $3,412,527 $2,092,955 $881,226
Ratio of Expenses to
Average Net Assets# 0.47%*@ 0.94% 0.92% 0.96% 0.98% 0.94%
Ratio of Net Investment Income
to Average Net Assets# 1.61%* 3.61% 3.11% 2.94% 2.75% 3.92%
Portfolio Turnover Rate 34%* 54% 56% 121% 119% 104%
<FN>
* These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended December 31, 1995, and for the years ended June 30, 1995, 1994 and
1993. If such expenses had not been voluntarily absorbed, ratio of expenses to
average net assets would have been 0.49% (not annualized), 0.97%, 0.95% and
0.98%, respectively, and ratio of net investment income to average net assets
would have been 1.59% (not annualized), 3.58%, 3.08%, and 2.92%, respectively.
@ Ratio reflects Total Expenses, less absorbed expenses by the investment
adviser.
</FN>
</TABLE>
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
Latin American Growth 34 IVSLX LatinAmGr
European Small Company 37 IVECX EuroSmCo
European 56 FEURX Europ
Pacific Basin 54 FPBSX PcBas
International Growth 49 FSIGX IntlGr
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Technology 55 FTCHX Tech
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Growth, Value
Emerging Growth 60 FIEGX Emgrth
Value Equity 46 FSEQX ValEq
Small Company 74 IDSCX DivSmCo
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
- --------------------------------------------------------------------------------
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
Balanced/Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Total Return 48 FSFLX TotRtn
- --------------------------------------------------------------------------------
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
Intermediate Government Bond 47 FIGBX IntGov
Short-Term Bond 33 INIBX ShTrBd
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Long-Term Bond 35 FTIFX TxFre
Tax-Free Intermediate Bond 36 * *
- --------------------------------------------------------------------------------
Money Market
Tax-Free Money Fund 40 FFRXX N/A
Cash Reserves 25 FDSXX N/A
U.S. Government Money Fund 44 FUGXX N/A
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO FUNDS
To receive general information and prospectuses
on any of INVESCO's funds or retirement plans,
or to obtain current account or price information,
call toll-free:
1-800-525-8085
To reach PAL(r), your 24-hour Personal Account
Line call: 1-800-424-8085
Or write to:
INVESCO Funds Group, Inc.,(sm) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, please visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center, 7800 East Union Avenue,
Lobby Level
This information must be preceded or
accompanied by an effective prospectus.
