ANNUAL REPORT
October 31, 1995
INVESCO
STRATEGIC
PORTFOLIOS,
INC.
Energy
Environmental Services
Financial Services
Gold
Health Sciences
Leisure
Technology
Utilities
No-Load Portfolios Investing
In Targeted Industry Sectors
INVESCO FUNDS
<PAGE>
Economic Overview November, 1995
A "soft landing" -- moderate inflation with moderate economic growth --
may well be underway.
Over the past 12 months, consumer prices have edged up just 2.8% (through
10/31/95). That's considerably below the figure most analysts had anticipated.
Last winter, forecasts for the 1995 consumer inflation rate ran in the 4% to 5%
range. Producer costs have increased at an even slower rate, just 1.3% over the
past year.
However, even as they puzzle over a low-inflation trend, analysts are hailing
the continued economic recovery. Growth in Gross Domestic Product (GDP) has
remained positive at moderate levels considered more sustainable for a mature
market such as the U.S.
These figures may indeed herald the much ballyhooed "soft landing." An
annualized real GDP growth rate of 2.5% was the announced target when the
Federal Reserve Board began raising short-term interest rates in February 1994.
Growth then slowed to annualized rates of 2.7% and 1.3% in the first and second
quarters of 1995, respectively.
Feeling confident that wage and price increases are under control, the Fed
directed a modest cut in interest rates this past summer. Meanwhile, inflation
has remained subdued in its corner, running at about the same annualized rate as
in 1993 and 1994. Despite an unexpectedly strong 4.2% jump in the real GDP
growth rate during the third quarter, the soft landing appears intact.
Stock and bond investors have responded positively to these developments. Led
by technology, health, and financial stocks, the S&P 500 has moved up strongly
this year, achieving a total return of 29.28% for the ten months ended 10/31/95.
The Lehman Government/Corporate Bond Index advanced 15.60% over the same
period.1
October 1995 represented a slowdown for market gains -- a timely reminder that
a torrid pace cannot be sustained indefinitely. Of course, during November, the
market resumed its expansion and the Dow Jones Industrial Average broke through
the 5000 mark for the first time. Therefore, barring any unanticipated surprises
in corporate earnings, the trade deficit or the federal budget, we continue to
expect moderate growth (albeit at a slower rate than we've seen this year) for
many months into the future.
INVESCO Strategic Portfolios
The line graphs in each of the following sections illustrate the value of a
$10,000 investment in the individual INVESCO Strategic Portfolios, plus
reinvested dividends and capital gain distributions, for the ten-year period
ended 10/31/95; or, in the case of Environmental Services, Financial Services,
and Utilities, from inception through 10/31/95.2 (Of course, past performance is
not a guarantee of future results.)
The charts and other total return figures cited reflect the portfolios'
operating expenses, but the indexes do not have expenses, which would, of
course, have lowered their performance.
Energy Portfolio
Energy Portfolio
Average Annualized Total Return
as of 10/31/952
1 year -5.45%
--------------------------------------
5 years -2.81%
--------------------------------------
10 years 4.13%
--------------------------------------
<PAGE>
For the one-year period ended 10/31/95, Energy Portfolio achieved a total
return of -5.45%, compared to -0.40% for the average natural resource fund, and
26.32% for the S&P 500.1 However, as a result of changes in fund management and
strategy, Energy Portfolio has returned a positive 6.41% since January 1, and we
believe it has built a strong base for continued improvement. (Of course, past
performance is not a guarantee of future results.)2
As the average returns indicate, the energy sector as a whole suffered during
the 1994-95 winter. Low natural gas prices during this period reflected reduced
demand due to predominantly warm weather throughout the country. In addition,
oil prices have dropped from a 12-month high of $20.63 to $17.58 in late
October.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Energy Portfolio 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 10/31/95*
Our stronger year-to-date performance in the face of these obstacles came as
we re-focused our investment strategy. Since May, we have capitalized on
diversification and integral company value, as well as commodity price
opportunity. Energy Portfolio seeks investment opportunity by emphasizing
attractively priced firms, such as United Meridian, that are expected to perform
well due to rising production profiles, rather than depending primarily on
rising oil or gas prices.
Additionally, we have increased our holdings in major integrated oil companies
such as Royal Dutch Petroleum, Amoco Corp and Mobil Corp. 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
opportunity over the long-term.
Although company-specific fundamental analysis remains the cornerstone of our
security selection process, the fund is currently being managed with an
awareness of commodity price cycles. For example, energy stock prices often drop
prior to an OPEC meeting in recognition of the potential for a negative outcome.
Therefore, in anticipation of the meeting scheduled for November 1995, profits
were taken during September in several oil service companies which had met price
objectives. These sales allowed us to increase cash and equivalents to around
20% of the portfolio.
This foresight provided us with the flexibility to capitalize on unusually
cheap valuations in October as the projected drop began to materialize. And we
expect that further declines in November and December could create additional
opportunities over the next twelve months.
Energy Portfolio's restructuring has generated positive recognition by the
industry. In their 8/4/95 analysis of the fund, Morningstar stated that the new
strategy "appears to be disciplined and it seems to make sense."
Over the long-term, Energy Portfolio is positioned to capitalize on the
opportunities this new strategy brings. In our opinion, a focus on
growth-oriented companies, combined with improving long-term supply and demand
projections for both crude oil and natural gas, bodes well for competitive
performance in the future.
Energy Portfolio is managed by INVESCO Vice President Thomas R. Samuelson. He
joined INVESCO in May 1995. He has over 10 years of energy investment
experience, most recently as Associate Director and Senior Energy Analyst at
Swiss Bank Capital Markets in Chicago. Mr. Samuelson is a Chartered Financial
Analyst and earned his BS in Petroleum Engineering and his MBA from the
University of Tulsa.
<PAGE>
Environmental Services Portfolio
Environmental Services Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 26.09%
--------------------------------------
Since inception (1/91) 0.70%
--------------------------------------
For the one-year period ended 10/31/95, Environmental Services Portfolio
achieved a total return of 26.09%, compared to 26.32% for the S&P 500.1 For the
same 12 months, Lipper Analytical Services ranked it #1 of 5 environmental
funds.3 (Of course, past performance is not a guarantee of future results.)2
Environmental Services Portfolio's strong performance can be attributed to
several factors, most important of which is an emphasis on choosing undervalued
firms whose profits are driven not by regulation, but by economic demand.
This selection process served the fund well as 1995's continued strong
economic growth brought increased industrial production. One result of greater
industrial capacity has been an increased demand for raw materials which in many
cases can be obtained at lower costs through recycling firms such as IMCO
Recycling and TETRA Technologies. A second economic by-product of industrial
strength is growth in demand for chemicals such as those produced by Betz
Laboratories, used in treating contaminated water.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Environmental Services
Portfolio 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 (12/90) through 10/31/95*
Moving into the future, we see continued opportunity for the fund. The trend
toward mergers and acquisitions should continue, particularly in the collection
of non-hazardous solid waste. As the environmental services industry matures,
these consolidations should improve efficiencies resulting in even greater
profits.
While seeking to capitalize on specific growth opportunities, we are watchful
of potential economic impacts on the environmental sector. Diversification
efforts have been focused on the selection of a large number of undervalued
growth companies which benefit the environment in a variety of ways, many of
which are not likely to be affected by any potential changes in the regulatory
environment.
Environmental Services Portfolio is managed by Jeffrey G. Morris. He joined
INVESCO in 1991 and was named port-folio manager in 1995. He earned his BSBA
from Colorado State University and is a Chartered Financial Analyst.
Financial Services Portfolio
Financial Services Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 25.80%
--------------------------------------
5 years 30.70%
--------------------------------------
Since inception (6/86) 15.77%
--------------------------------------
<PAGE>
Independent mutual fund analyst Morningstar awarded Financial Services
Portfolio its highest rating, Five Stars, for the five-year period ended
10/31/95.4 For the one-year period ended 10/31/95, the fund had a total return
of 25.80%, compared to 26.32% for the S&P 500.1 (Of course, past performance is
not a guarantee of future results.)2
Much of 1995's strong performance can be attributed to a large exposure to
money center banks. Following poor returns in late 1994 due to problems with
derivatives, the market overlooked the banks' fundamental potential for earnings
growth. The resultant below-value pricing represented a significant buying
opportunity for us, and we increased the portfolio's bank holdings to over 47%
in January.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Financial Services
Portfolio 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 (6/86) through 10/31/95*
Increased weighting in this sector meant Financial Services Portfolio was in a
position to capitalize on strong gains achieved in 1995 by such giants as
Chemical Banking and Chase Manhattan, whose merger was announced in October.
This follows a trend of mergers in the industry, driving prices up in
anticipation of economies of scale which should further enhance profitability.
This stellar performance was somewhat diminished by poor October returns in
consumer credit following announcements of increased delinquencies. This setback
is seen as temporary, however, and the fund is retaining key holdings such as
Dean Witter Discover and American General. These consumer credit companies
continue to meet our criteria for high-quality firms that can grow earnings
faster than their peers, while generating acceptable returns on capital.
Moving ahead, Financial Services Portfolio is selling some of the now
over-priced banking stocks and working toward a greater degree of liquidity.
This strategy should allow for flexibility to participate in promising sectors
throughout the projected economic slowing in 1996.
Financial Services Portfolio is managed by INVESCO Vice President Douglas
N. Pratt. He is a Chartered Financial Analyst, with more than 10 years of
experience in the investment business. He earned his MBA from Columbia
University, and an AB from Brown University. Mr. Pratt also co-manages INVESCO
Growth Fund.
Gold Portfolio
Gold Portfolio
Average Annualized Total Return
as of 10/31/952
1 year -8.12%
--------------------------------------
5 years 4.02%
--------------------------------------
10 years 3.33%
--------------------------------------
For the one-year period ended 10/31/95, Gold Portfolio had a total return of
negative 8.12%, outperforming its peer group of Gold Oriented Funds, which had
an average total return of negative 13.50%, according to Lipper Analytical
Services.3 During the same period, the S&P 500 showed a positive return of
26.32%.1 (Of course, past performance is not a guarantee of future results.)2
<PAGE>
The sector's overall poor performance was largely due to a correction in
Canadian mining stocks in late 1994. However, during 1995, Gold Portfolio has
overcome this set-back, turning out a competitive return of 7.17% year-to-date,2
versus the average gold oriented fund performance of negative 5.26%, as reported
by Lipper Analytical Services.3 Positive 1995 returns can be attributed largely
to our selection of small companies exploring for new resources which could
provide future growth. This strategy has paid off in the performance of Diamond
Fields Resources, which has continued to exhibit strong growth since the 1994
discovery of what may be one of the world's largest, lowest-cost nickel
deposits.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Gold Portfolio 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 10/31/95*
Traditionally, gold has provided investors with a hedge against inflation or a
weakening of the U.S. dollar. Gold Portfolio seeks to combine this traditional
benefit with an investment strategy designed to offer moderate growth potential.
Several factors contribute to the potential for growth in gold stocks. For the
past seven years, mine production has not kept up with the demand for jewelry.
This shortfall has been offset by sales of gold reserves by some central banks.
However, over the long-term this production shortage could lead to increased
bullion prices.
In addition to jewelry production, demand for gold is increasing in some
emerging markets such as China, where the national currency is becoming
devalued. As personal incomes in these areas increase, it is anticipated that
the amount allocated toward gold purchases will increase as well. Finally, as
has been seen in 1995, Gold Portfolio's selection of smaller junior mining
operations offers the potential for growth in the event a significant discovery
is made, even if the price of bullion remains stable.
Gold Portfolio is managed by Senior Vice President Daniel B. Leonard. He
joined INVESCO in 1975; his investment experience extends back to 1960. He
attended the New York University Graduate School of Business and holds a BA from
Washington & Lee University.
Health Sciences Portfolio
Health Sciences Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 43.83%
--------------------------------------
5 years 22.05%
--------------------------------------
10 years 22.64%
--------------------------------------
For the one-year period ended 10/31/95, Health Sciences Portfolio achieved a
total return of 43.83%, well ahead of the 26.32% total return posted by the S&P
500.1 For the ten-year period ended 10/31/95, Morningstar awarded the fund Five
Stars.4 Also for the one-year period, Lipper Analytical Services ranked it #1 of
18 health/biotechnology funds.3 For the five-year period ended 10/31/95, the
fund was ranked #3 of 8 funds; and for ten years, #1 of 5. (Of course, past
performance is not a guarantee of future results.)2
During 1995, fund performance has been boosted by a wave of buyouts and
mergers throughout the health sector. Recent examples include the merger of
Nellcor and Puritan Bennett, as well as the pending merger between Upjohn and
Pharmacia. This industry consolidation cuts overhead costs, reduces duplication
of effort, and creates other synergies which can translate into short-term
profits and long-term improved growth.
<PAGE>
While industry consolidation provides a boost, the portfolio's fundamental
performance is tied to the selection of companies with greater-than-average
growth opportunities. Health Sciences Portfolio invests in companies and
technologies that have the potential to fulfill unmet medical needs or improve
quality of life, while providing attractive returns over the long-term.
Throughout 1995, the portfolio has maintained large holdings in medical
products (weighting of 23.24% at 10/31/95) such as Nellcor Puritan Bennett and
Boston Scientific. These companies continue to turn in strong performances due
to an increasing number of surgical procedures and an improving regulatory
climate at the FDA, as well as economic synergies achieved through
consolidation.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Health Sciences
Portfolio 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 10/31/95*
Pharmaceutical holdings such as Biovail Corp and Forest Laboratories also have
performed well in the improved FDA climate, with recent approvals of some
promising new drugs. In addition, it is anticipated that several biotechnology
firms will conduct successful clinical trials, leading to FDA approval for their
products. With the current attractive pricing in this industry, the fund is
gradually increasing holdings in biotech firms which we believe have superior
opportunities for success.
We believe the health services industry represents another recent mixed
performer with strong future potential. During 1995, Health Sciences Portfolio
dramatically cut back on HMO holdings, from 21% in January to a current level of
less than 4%. However, we believe that pricing in this industry has now absorbed
most of the effects of earlier negative news, and are searching for companies
whose growth potential appears to be under-recognized by the market. Building up
the HMO holdings now could result in better-than-average performance when the
market finally does recognize these companies' intrinsic value.
The health-services industry offers opportunity in associated fields as well.
Health-related computer systems providers, such as HBO & Co, have allowed the
fund to participate in returns from 1995's technology boom.
In our opinion, the outlook for Health Sciences Portfolio remains positive as
we move into 1996 and beyond. An aging America demands improved health care
options, and is likely to continue to do so regardless of the economic climate.
Health Sciences Portfolio is co-managed by INVESCO Senior Vice President
Barry Kurokawa and Vice President John Schroer. Mr. Kurokawa holds an MBA from
Loyola Marymount University and a BA from California State University. He began
his investment career in 1984. Mr. Schroer is a Chartered Financial Analyst who
started his investment career in 1989, after earning an MBA and BA from the
University of Wisconsin. He also manages Emerging Growth Fund.
Leisure Portfolio
Leisure Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 9.98%
--------------------------------------
5 years 26.33%
--------------------------------------
10 years 19.16%
--------------------------------------
<PAGE>
For the five- and ten-year periods ended 10/31/95, independent mutual fund
analyst Morningstar awarded Leisure Portfolio its highest rating, Five Stars.4
For the one-year period ended 10/31/95, the fund had a total return of 9.98%,
compared to 26.32% for the S&P 500.1 (Of course, past performance is not a
guarantee of future results.)2
A sluggish consumer-spending environment, uncertainty surrounding
communications deregulation, a slowdown in the advertising market, and losses in
the gaming industry all worked to hold back 1995 returns in the leisure sector.
However, despite these negatives, the fund's focus on individual companies with
attractive pricing and emerging opportunities allowed for calendar year-to-date
performance of 12.51% as of 10/31/95. (Of course, past performance is not a
guarantee of future results.)2
By adhering to this focus, we were able to capitalize on several stocks that
performed well despite lackluster growth in their industries. Examples include
lodging stocks HFS, Inc and Studio Plus Hotels, as well as Boston Chicken in the
retail food and restaurant sector.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Leisure Portfolio 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 10/31/95*
One industry exhibiting consistently superior performance throughout 1995 has
been the consumer software industry. Expanding PC market boundaries and the
shift to CD-ROM has resulted in strong returns from software companies such as
Sierra On- Line.
Merger and buyout activity contributed to positive returns as well.
Consolidations between such giants as Disney (Walt) Co and Capital Cities/ABC,
as well as Time Warner and Turner Broadcasting System, mean lower costs and
greater efficiencies, leading to greater long-term profitability.
Looking forward, we expect the anticipated approval of the Telecommunications
Deregulation Act to be a positive catalyst for growth. The Act provides for
deregulation of the cable industry and flexibility of ownership rules for radio
and television broadcasters. These changes should support future growth for
holdings such as Turner Broadcasting System and Lin Television.
In other sectors, major new Las Vegas attractions planned for 1996 should
boost returns in the gaming area. In addition, continued industry consolidation
of small, independent organizations into large, successful operators such as
Harrah's Entertainment provides profit-enhancing economies of scale.
Over the long-term, the fund's broad "leisure" definition allows it to
diversify among a wide range of industries -- from video games to fashion
trends, restaurants or the movies. As consumer disposable income continues to
creep up, Leisure Portfolio has the flexibility to reallocate as necessary to
accommodate changing trends and tastes.
INVESCO Senior Vice President Timothy J. Miller manages Leisure Portfolio.
A Chartered Financial Analyst, he has fifteen years of experience in
professional money management; he holds an MBA from the University of Missouri
as well as a BSBA from St. Louis University. Mr. Miller also manages Dynamics
Fund, and is assisted by Amy Selner, who joined INVESCO in 1991. She is a
graduate of Creighton University, Omaha, where she earned a BSBA in finance and
marketing.
<PAGE>
Technology Portfolio
Technology Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 42.19%
--------------------------------------
5 years 33.96%
--------------------------------------
10 years 22.10%
--------------------------------------
For the one-year period ended 10/31/95, Technology Portfolio achieved a total
return of 42.19%, compared to 26.32% for the S&P 500.1 For the three-, five-,
and ten-year periods, independent mutual fund analyst Morningstar awarded
Technology Portfolio its highest rating, Five Stars.4 (Of course, past
performance is not a guarantee of future results.)2
The technology sector continues to rise to new heights, showing returns that
have significantly outperformed the broad market. During 1995, Technology
Portfolio kept pace with the sector's success by emphasizing companies with
highly predictable earnings and attractive valuations.
As technology performance has outpaced the market, we felt that many
technology stocks had become over-valued. In light of this belief, and awareness
of a potential seasonal slow-down, we positioned the fund defensively from March
through July.
The anticipated slowdown did not occur at that time, leaving Technology
Portfolio's mid-year performance somewhat below the sector. However, the
defensive posture enhanced the fund's positive performance for the volatile
three months ended 10/31/95. In the face of several market sell-offs, the fund
achieved a positive three-month return of 5.31%. (Of course, past performance is
not a guarantee of future results.)2
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Technology Portfolio 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 10/31/95*
The realization of this long-awaited decline has created an opportunity for us
to move away from our defensive posture. As time progresses, we can focus on
purchasing undervalued stocks in more aggressive companies with higher growth
potential.
Toward this end, we continue to maintain wide diversification among many
different technologies. We have increased exposure to health technology
companies such as Nellcor Puritan Bennett, which stand to benefit from long-term
demand for improved health services and an improving regulatory climate at the
FDA. In addition, we've added to weightings in communications technology, such
as Ericsson (L M) Telephone ADR.
Projections for technology remain positive as final demand for all types of
computers remains strong, and shortages of semiconductors have limited computer
supply and kept prices stable. Additionally, continued merger and buyout
activity contributes to economies of scale that make production more efficient,
leading to increased profitability over the long-term.
Technology Portfolio is managed by investment veteran Daniel B. Leonard, who
also manages Gold Portfolio. His experience in investment management extends
back to 1960. Mr. Leonard joined INVESCO in 1975 and is now a Senior Vice
President. He attended the New York University Graduate School of Business and
holds a BA from Washington & Lee University. He is assisted by INVESCO Vice
President Gerard Hallaren. He earned his BA from the University of Massachusetts
at Amherst and joined INVESCO in 1994.
<PAGE>
Utilities Portfolio
Utilities Portfolio
Average Annualized Total Return
as of 10/31/952
1 year 13.48%
--------------------------------------
5 years 13.69%
--------------------------------------
Since inception (6/86) 10.48%
--------------------------------------
For the one-year period ended 10/31/95, Utilities Portfolio had a total return
of 13.48%, compared to 26.32% for the S&P 500.1 (Of course, past performance is
not a guarantee of future results.)2
The fund's performance was slightly below the average utility fund, which
returned 17.55% for the twelve months ended 10/31/95 as reported by Lipper
Analytical Services.3 However, we are closing the gap with our peers, turning in
17.98% since January. (Of course, past performance is not a guarantee of future
results.)2
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Strategic Portfolios, Inc. - Utilities Portfolio 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 (6/86) through 10/31/95*
Returns suffered earlier in the year due to under-weighting in electric
utility stocks, which performed strongly in the wake of the long-term bond
rally. We quickly adjusted our portfolio, however, increasing our holdings in
this industry from 14% in January to 24% in February, and gradually building
through the year to the current level of almost 30%. However, should interest
rates rise, utilities in general, and electric utilities in particular, would
come under some pressure. With this in mind, the portfolio continues to
represent a broad cross-section of the various utility sectors. In particular,
we are placing a strong emphasis on growth- oriented telecommunication companies
such as U S WEST Communications Group and Southern New England
Telecommunications.
Over the long-term, utilities' traditional purpose is to hedge against market
downturns while providing above-average dividends. On the fixed-income front,
the fund maintains a conservative position in the fixed-income market. Most of
these investments are held in shorter-term U.S. government bonds (five years or
less) to increase the liquidity and yield of the fund.
Utilities Portfolio is managed by Vice President Brian Kelly. He is a
Certified Public Accountant, who began his investment career in 1986 with Sears
Investment Management Company. Mr. Kelly earned an MBA and JD from the
University of Iowa, as well as a BA from the University of Notre Dame.
<PAGE>
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 Bond Index is an unmanaged index illustrating the
broad fixed-income markets.
2 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.
3 Rankings provided by Lipper Analytical Services, an independent fund
analyst, are based upon total return performance unadjusted for commissions.
4 Morningstar's proprietary ratings reflect historical risk-adjusted
performance as of 10/31/95 and are subject to change every month. These ratings
are calculated from the funds' 3-, 5-, and 10-year average annual total returns
(based on available track records) in excess of 90-day Treasury bill returns.
The top 10% of funds in an investment category receive 5 stars; the next 22.5%
receive 4 stars; the next 35%, 3 stars.
There are 16 Specialty Financial funds ranked by Morningstar. Strategic
Financial Services Portfolio's 3-year rating is 4 stars, and its 5-year rating
is 5 stars.
There are 18 Specialty Health funds ranked by Morningstar. Strategic Health
Science Portfolio's 3-year rating is 2 stars, its 5-year rating is 3 stars, and
its 10-year rating is 5-stars.
There are 16 Specialty Unaligned funds ranked by Morningstar. Strategic
Leisure Portfolio's 3-year rating is 4 stars, and its 5- and 10-year ratings are
5 stars.
There are 27 Specialty Technology funds ranked by Morningstar. Strategic
Technology Portfolio's 3-year rating is 5 stars, its 5-year rating is 5 stars,
and its 10-year rating is 5 stars.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Ten Largest Common Stock Holdings
October 31, 1995
Description Value
- ------------------------------------------------------------------
ENERGY Portfolio
British Petroleum PLC ADR $2,479,825
TransTexas Gas 2,224,000
Transocean A/S 2,028,410
Mobil Corp 2,015,000
Anadarko Petroleum 1,951,875
Schlumberger Ltd 1,867,500
Royal Dutch Petroleum 5 Gldr Shrs 1,843,125
Camco International 1,830,000
Union Pacific Resources Group 1,820,000
United Meridian 1,687,500
ENVIRONMENTAL SERVICES Portfolio
Thermo Electron $1,490,400
ARCO Chemical 1,421,000
TETRA Technologies 1,325,000
Wheelabrator Technologies 1,250,625
IMCO Recycling 1,234,100
Millipore Corp 1,114,312
Betz Laboratories 845,250
Agrium Inc 799,500
Harsco Corp 770,150
Pioneer Hi-Bred International 744,375
FINANCIAL SERVICES Portfolio
Columbia/HCA Healthcare $19,650,000
BankAmerica Corp 17,250,000
American General 16,437,500
Foundation Health 15,890,625
Leucadia National 13,781,250
International Business Machines 13,615,000
Torchmark Corp 13,487,500
Jefferson-Pilot Corp 13,200,000
Wells Fargo 12,607,500
Mid Ocean Ltd 11,383,675
GOLD Portfolio
Diamond Fields Resources $20,627,084
Franco-Nevada Mining 10,854,893
Golden Star Resources 8,289,938
Aber Resources Ltd 7,950,000
Euro-Nevada Mining 6,382,119
Teck Corp Class B
Zahlungsausgleich 5,384,951
TVX Gold 4,550,000
Agnico Eagle Mines 4,400,000
MK Gold 4,387,500
HEALTH SCIENCES Portfolio
HBO & Co $34,308,090
Nellcor Puritan Bennett 34,212,500
American Home Products 31,905,000
Boston Scientific 27,069,525
Merck & Co 25,875,000
Forest Laboratories 24,204,375
ALPHARMA Inc Class A 24,000,000
<PAGE>
IDEXX Laboratories 21,882,750
Amgen Inc 21,600,000
Medtronic Inc 20,790,000
LEISURE Portfolio
Boston Chicken $10,312,812
U S WEST 7,143,750
HFS Inc 7,031,500
Turner Broadcasting System Class B 6,468,750
Tele-Communications International Class A 6,463,963
McGraw-Hill Cos 6,140,625
Seagram Co Ltd 6,012,000
Harrah's Entertainment 6,004,350
Harcourt General 5,706,000
Lin Television 5,496,000
TECHNOLOGY Portfolio
First Data $19,837,500
Nokia Corp Sponsored ADR
Representing Ord A Shrs 19,512,500
Intuit Inc 14,400,000
HBO & Co 14,150,000
General Motors Class E 14,137,500
Ascend Communications 13,000,000
Ericsson (L M) Telephone ADR
Representing Class B Shrs 12,815,625
Solectron Corp 12,075,000
MEMC Electronic Materials 12,000,000
Diamond Fields Resources 10,761,957
UTILITIES Portfolio
US WEST Communications Group $6,583,750
Public Service of Colorado 5,630,625
IES Industries 4,946,925
Granada Group PLC 4,479,974
Southern New England
Telecommunications 4,461,437
Rochester Gas & Electric 4,326,350
NYNEX Corp 3,760,000
Commonwealth Energy Systems SBI 3,364,575
Entergy Corp 3,343,050
Television Broadcasts Ltd 2,974,987
Composition of holdings is subject to change.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Investment Securities
October 31, 1995
Country Code Shares or
if Principal
Description Applicable Amount Value
- --------------------------------------------------------------------------------
ENERGY Portfolio
COMMON STOCKS & RIGHTS 95.58%
COMPUTER RELATED 3.25%
Landmark Graphics* 65,000 $ 1,413,750
------------
ELECTRONICS 2.58%
Input/Output Inc* 30,000 1,121,250
------------
Oil & Gas 87.11%
EQUIPMENT 12.53%
Baker Hughes 30,000 588,750
Camco International 80,000 1,830,000
Dresser Industries 40,000 830,000
Smith International* 74,000 1,184,000
Tesco Corp* CA 100,000 282,525
Varco International* 80,000 730,000
------------
5,445,275
------------
EXPLORATION & PRODUCTION 22.54%
Anadarko Petroleum 45,000 1,951,875
Anderson Exploration* CA 10,000 91,077
Bellwether Exploration* 68,500 368,187
Cairn Energy USA* 48,000 576,000
Forcenergy Gas Exploration
Rights*@^ 9,342 0
Pogo Producing 40,000 805,000
TransTexas Gas* 139,000 2,224,000
Union Pacific Resources Group* 80,000 1,820,000
Union Texas Petroleum Holdings 15,000 270,000
United Meridian* 100,000 $1,687,500
------------
9,793,639
------------
FIELD SERVICES 17.02%
BJ Services* 10,000 235,000
Dawson Geophysical* 42,900 429,000
Halliburton Co 30,000 1,245,000
Nabors Industries* 10,000 86,250
Petroleum Geo-Services A/S
Sponsored ADR* NO 30,000 581,250
Schlumberger Ltd 30,000 1,867,500
Tidewater Inc 35,000 923,125
Transocean A/S* NO 133,000 2,028,410
------------
7,395,535
------------
INTEGRATED 10.91%
Amerada Hess 10,000 451,250
Amoco Corp 25,400 1,622,425
Kerr-McGee Corp 10,000 551,250
Louisiana Land & Exploration 20,000 707,500
Phillips Petroleum 30,000 967,500
USX-Marathon Group 10,000 177,500
Unocal Corp 10,000 262,500
------------
4,739,925
------------
<PAGE>
INTERNATIONAL 20.97%
British Petroleum PLC ADR UK 28,100 2,479,825
Mobil Corp 20,000 2,015,000
Oil Search Ltd PP 500,000 422,189
Royal Dutch Petroleum
5 Gldr Shrs NL 15,000 1,843,125
Shell Transport & Trading
PLC New York Shrs UK 20,000 1,425,000
Total Cie Francaise des
Petroles SA Sponsored ADR
Representing Ord B Shrs FR 30,000 926,250
------------
9,111,389
------------
OFFSHORE DRILLING 1.16%
ENSCO International* 30,000 506,250
------------
REFINING/MARKETING 0.59%
Diamond Shamrock 10,000 257,500
------------
UTILITIES 1.39%
Questar Corp 20,000 602,500
------------
TOTAL OIL & GAS 37,852,013
------------
UTILITIES 2.64%
US WEST Communications
Group* 40,000 1,145,000
------------
TOTAL COMMON STOCKS & RIGHTS
(Cost $41,886,040) 41,532,013
------------
PREFERRED STOCKS 2.12%
OIL & GAS -- PRODUCTION/
PIPELINE 2.12%
Tejas Gas, Depository Shrs
(Each shr consists of
one-fifth interest in a shr of
5.25% Conv Pfd)
(Cost $931,176) 20,000 920,000
------------
FIXED INCOME SECURITIES 2.30%
OIL & GAS -- EXPLORATION
& PRODUCTION 2.30%
Forcenergy Gas Exploration
Exch Conv Sub Notes^
7.000%, 9/15/2000
(Cost $1,000,000) $1,000,000 $ 1,000,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $43,817,216)
(Cost for Income Tax Purposes
$44,159,958) $43,452,013
============
ENVIRONMENTAL SERVICES Portfolio
COMMON STOCKS 74.88%
<PAGE>
AGRICULTURAL 4.04%
Cadiz Land* 30,000 $ 146,250
Pioneer Hi-Bred International 15,000 744,375
------------
890,625
------------
BUILDING & CONSTRUCTION
RELATED 3.33%
Fluor Corp 13,000 734,500
------------
CHEMICALS 17.10%
ARCO Chemical 29,000 1,421,000
Agrium Inc 19,500 799,500
Betz Laboratories 21,000 845,250
Vigoro Corp 16,200 702,675
------------
3,768,425
------------
ENERGY 5.67%
Wheelabrator Technologies 87,000 1,250,625
------------
Pollution Control 30.11%
RECYCLING 15.11%
Harsco Corp 14,600 770,150
IMCO Recycling 57,400 1,234,100
TETRA Technologies* 100,000 1,325,000
------------
3,329,250
------------
SERVICES 15.00%
Browning-Ferris Industries 22,350 650,944
Continental Waste Industries* 14,700 253,575
Newpark Resources* 20,000 317,500
Rollins Environmental Services* 70,000 236,250
Sanifill Inc* 8,100 255,150
United Waste Systems* 6,000 237,000
WMX Technologies 25,400 714,375
Waste Management International
PLC ADR* 40,000 405,000
Western Waste Industries* 12,000 237,000
------------
3,306,794
------------
TOTAL POLLUTION
CONTROL 6,636,044
------------
SCIENTIFIC INSTRUMENTS 11.82%
Millipore Corp 31,500 1,114,312
Thermo Electron* 32,400 1,490,400
------------
2,604,712
------------
UTILITIES 2.81%
Idaho Power 22,300 618,825
------------
TOTAL COMMON STOCKS
(Cost $15,582,437) 16,503,756
------------
PREFERRED STOCKS 0.52%
POLLUTION CONTROL - RECYCLING 0.52%
Cyclean Inc, Series D Pfd*^
(Cost $500,000) 125,000 115,000
------------
<PAGE>
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 24.60%
Repurchase Agreement with State
Street Bank & Trust Co dated
10/31/1995 due 11/1/1995 at 5.750%,
repurchased at $5,422,866
(Collateralized by US Treasury
Notes due 5/15/2005 at 12.000%,
value $5,534,866)(Cost $5,422,000) $ 5,422,000 5,422,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $21,504,437)
(Cost for Income Tax Purposes
$21,549,437) $ 22,040,756
============
FINANCIAL SERVICES Portfolio
COMMON STOCKS 95.05%
BANKING 40.78%
Banc One 300,000 $ 10,125,000
Bank of Boston 200,000 8,900,000
BankAmerica Corp 300,000 17,250,000
Chase Manhattan 150,000 8,550,000
Chemical Banking 150,000 8,531,250
Citicorp 175,000 11,353,125
Compass Bancshares 225,000 6,975,000
First Chicago 165,000 11,199,375
First of America Bank 250,000 10,656,250
Firstar Corp 300,000 10,612,500
KeyCorp 300,000 10,125,000
NBD Bancorp 250,000 9,500,000
NationsBank Corp 75,000 4,931,250
Regions Financial 180,000 7,177,500
Republic New York 135,000 7,914,375
US Bancorp 325,000 9,628,125
Wells Fargo 60,000 12,607,500
West One Bancorp 40,000 1,700,000
------------
167,736,250
------------
COMPUTER RELATED 5.28%
International Business Machines 140,000 13,615,000
VeriFone Inc* 300,000 8,100,000
------------
21,715,000
------------
EXPLORATION & MINING 1.05%
Diamond Fields Resources* 240,000 $ 4,304,783
------------
FINANCE RELATED 2.42%
Dean Witter Discover 200,000 9,950,000
------------
HEALTH CARE FACILITIES 4.78%
Columbia/HCA Healthcare 400,000 19,650,000
------------
HEALTH MAINTENANCE ORGANIZATIONS 7.57%
Foundation Health* 375,000 15,890,625
Mid Atlantic Medical Services* 400,000 7,950,000
PacifiCare Health Systems Class B* 100,000 7,275,000
------------
31,115,625
------------
<PAGE>
INSURANCE 30.73%
ACE Ltd 200,000 6,800,000
ALLIED Group 250,000 8,125,000
Allmerica Property & Casualty 85,000 1,933,750
Allstate Corp 150,000 5,512,500
American General 500,000 16,437,500
American International Group 100,000 8,437,500
CNA Financial* 20,000 2,280,000
Equitable of Iowa 100,000 3,500,000
Jefferson-Pilot Corp 200,000 13,200,000
Leucadia National 250,000 13,781,250
Mid Ocean Ltd 321,800 11,383,675
Ohio Casualty 150,000 5,325,000
PartnerRe Holdings Ltd 380,000 10,117,500
PennCorp Financial Group 255,000 6,088,125
Torchmark Corp 325,000 13,487,500
------------
126,409,300
------------
REAL ESTATE RELATED 2.44%
Insignia Financial Group Class A* 167,800 4,530,600
Regency Realty~ 325,000 5,525,000
------------
10,055,600
------------
TOTAL COMMON STOCKS
(Cost $361,466,469) 390,936,558
------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 4.95%
FINANCE RELATED 4.95%
Associates Corp of North America
5.870%, 11/1/1995
(Cost $20,344,000) $ 20,344,000 20,344,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $381,810,469) (Cost for
Income Tax Purposes $381,817,025) $411,280,558
============
GOLD Portfolio
COMMON STOCKS 89.84%
BANKING 3.63%
Bank fuer Internationalen
Zahlungsausgleich* SZ 600 $ 5,384,951
------------
EXPLORATION & MINING 86.21%
Aber Resources Ltd*~ CA 1,200,000 $ 7,950,000
Acacia Resources Ltd* AS 400,000 654,202
Agnico Eagle Mines CA 400,000 4,400,000
Arequipa Resources* CA 746,000 693,300
Arizona Star Resource* CA 600,000 267,655
Bema Gold* CA 1,000,000 1,812,500
Bolivar Goldfields* CA 500,000 353,156
Bre-X Minerals Ltd* CA 50,000 1,737,898
Canyon Resources* US 750,000 1,453,125
Carson Gold*~ CA 470,800 402,538
Cathedral Gold* CA 450,000 1,020,434
<PAGE>
Consolidated Ramrod Gold* CA 551,000 852,328
Crown Resources*~ US 960,000 3,960,000
Dayton Mining* CA 946,000 3,429,250
Delta Gold Mining Class A* CA 250,000 139,404
Diamond Fields Resources* CA 1,150,000 20,627,084
Eden Roc Mineral* CA 450,000 471,741
Euro-Nevada Mining CA 192,900 6,382,119
First Dynasty Mines Ltd* CA 691,800 3,891,375
Francisco Gold*~ CA 400,000 1,085,489
Franco-Nevada Mining CA 200,000 10,854,893
Gasgoyne Gold Mines NL AS 200,000 252,552
Golden Shamrock Mines* AS 5,000,000 2,738,520
Golden Star Resources*~ CA 1,700,500 8,289,938
Goldfields Ltd* AS 333,333 824,091
Great Central Mines NL* AS 600,000 1,223,206
Greenstone Resources Ltd* CA 750,000 1,828,125
Guyana Gold*~ CA 600,000 379,177
Guyanor Ressources SA Class B* FR 689,000 1,536,785
High River Gold Mines Ltd* CA 249,500 565,774
International Capri Resources*~ CA 400,000 475,830
International Taurus Resources* CA 300,000 959,096
Loki Gold*~ CA 1,685,000 2,254,990
MK Gold*~ US 1,350,000 4,387,500
Manhattan Minerals* CA 199,000 399,475
Metallica Resources* CA 200,000 370,256
Miramar Mining* CA 466,100 2,374,197
Monarch Resources* CA 280,000 228,993
Original Sixteen to One Mine* US 96,100 408,425
Orvana Minerals*~ CA 1,300,000 4,059,432
Prime Resources Group* CA 300,000 2,174,696
Queenstake Resources*~ CA 800,000 350,925
Rea Gold* CA 300,000 525,000
Royal Oak Mines* CA 400,000 1,475,000
San Fernando Mining*~ CA 600,000 267,655
Solitario Resources* CA 204,000 182,005
Stillwater Mining* US 50,000 843,750
Sutton Resources Ltd* US 100,000 925,000
TVX Gold* CA 700,000 4,550,000
Teck Corp Class B CA 300,000 5,520,382
Texas Star Resources* US 500,000 125,000
Trillion Resources*~ CA 606,800 1,488,785
Vengold Inc* CA 339,300 360,506
Viceroy Resources*~ CA 458,700 1,790,444
Yamana Resources*~ CA 700,000 1,353,143
------------
127,927,144
------------
TOTAL COMMON STOCKS
(Cost $149,411,252) 133,312,095
------------
PREFERRED STOCKS 6.28%
EXPLORATION & MINING 1.18%
Hecla Mining, $3.50, Series B
Cum Conv Pfd US 42,100 1,747,150
------------
METALS 5.10%
Freeport McMoran Copper
& Gold, 7.000%, Conv Pfd US 300,000 7,575,000
------------
TOTAL PREFERRED STOCKS
(Cost $9,244,651) 9,322,150
------------
<PAGE>
FIXED INCOME SECURITIES 3.88%
EXPLORATION & MINING 2.87%
Bema Gold, Conv Sub Deb
7.500%, 2/28/2000 CA $ 3,860,000 4,255,650
------------
METALS 1.01%
Canyon Resources, Conv Sub
Notes, 6.000%, 6/1/1998^ US 2,000,000 1,492,500
------------
TOTAL FIXED INCOME SECURITIES
(Cost $5,860,000) 5,748,150
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $164,515,903) (Cost for
Income Tax Purposes $164,553,809) $148,382,395
============
HEALTH SCIENCES Portfolio
COMMON STOCKS & WARRANTS 75.07%
BIOTECHNOLOGY 6.48%
Amgen Inc* 450,000 $ 21,600,000
BioCryst Pharmaceuticals* 250,000 2,593,750
Cephalon Inc* 535,000 16,050,000
Creative BioMolecules* 700,000 3,675,000
Ecogen Technologies I*^~ 100 1,320,000
ImClone Systems*~ 650,000 2,315,625
MedClone Inc Warrants
(Exp 1998)*^@ 500,000 0
Metra Biosystems*^ 275,081 3,816,749
Unisyn Technologies*^~ 31,132 31,132
UroMed Corp* 429,333 4,561,663
Xenometrix Inc*^~ 145,642 873,852
------------
56,837,771
------------
COMPUTER RELATED 4.94%
Cerner Corp* 340,000 9,010,000
HBO & Co 484,920 34,308,090
------------
43,318,090
------------
HEALTH CARE FACILITIES 3.69%
Assisted Living Concepts*~ 250,000 3,593,750
Columbia/HCA Healthcare 265,000 13,018,125
OrNda Healthcorp* 387,000 6,820,875
Salick Health Care*~ 245,000 8,911,875
------------
32,344,625
------------
MEDICAL EQUIPMENT & SUPPLIES 2.84%
Becton Dickinson & Co 265,500 17,257,500
Diametrics Medical*~ 30,000 230,625
Diametrics Medical*^~ 409,554 3,148,446
EP Technologies* 350,000 4,331,250
------------
24,967,821
------------
MEDICAL INSTRUMENTS 4.86%
IDEXX Laboratories* 537,000 21,882,750
<PAGE>
Medtronic Inc 360,000 20,790,000
------------
42,672,750
------------
MEDICAL PRODUCTS 23.24%
Baxter International 330,000 12,746,250
Biomet Inc* 1,095,000 18,204,375
Boston Scientific* 642,600 27,069,525
Clarus Medical Systems Warrants
(Exp 2000)*^@~ 11,119 0
Corvita Corp* 100,000 800,000
Depotech Corp* 275,000 3,987,500
Electroscope Inc*^~ 157,500 787,500
Electroscope Inc Warrants
(Exp 1996)*^@~ 42,000 0
Emisphere Technologies*~ 500,000 3,937,500
Guidant Corp 550,000 17,600,000
KeraVision Inc Series E*^ 206,185 2,296,385
Matrix Pharmaceutical*~ 561,200 8,137,400
Nellcor Puritan Bennett* 595,000 34,212,500
Penederm Inc* 255,000 2,518,125
Pharmacia AB Sponsored ADR
Representing Series A Shrs 305,000 10,675,000
ResMed Inc*~ 445,000 6,675,000
St Jude Medical* 385,000 20,501,250
Sepracor Inc* 360,000 6,075,000
Sofamor/Danek Group* 775,000 18,987,500
Tecnol Medical Products* 463,700 8,810,300
------------
204,021,110
------------
MEDICAL RELATED -- DRUGS 23.93%
ALPHARMA Inc Class A~ 1,000,000 24,000,000
American Home Products 360,000 31,905,000
Astra AB Series A Shrs 450,000 16,527,206
Biovail Corp* 387,443 15,013,416
CIMA Labs*~ 466,666 3,324,995
Crown Laboratories*^~ 759,792 1,170,555
Dura Pharmaceuticals* 80,000 2,340,000
Forest Laboratories* 585,000 24,204,375
INCYTE Pharmaceuticals* 180,000 3,735,000
Merck & Co 450,000 25,875,000
Mylan Laboratories 795,000 15,105,000
Neurobiological Technologies* 150,000 637,500
Pharmos Corp*~ 670,992 1,300,047
Sandoz AG Registered Shrs 20,700 17,066,336
Shaman Pharmaceuticals* 166,667 1,104,169
Sparta Pharmaceuticals*^~ 500,000 1,125,000
Univax Biologics* 350,000 2,209,375
Vical Inc* 275,000 2,818,750
Watson Pharmaceuticals* 460,100 20,589,475
------------
210,051,199
------------
MEDICAL SERVICES 5.09%
Medical Associates of America*^~ 502,935 1
Omnicare Inc 340,000 12,325,000
PhyCor Inc* 360,000 13,230,000
Quintiles Transnational* 240,200 15,432,850
RoTech Medical* 162,000 3,685,500
------------
44,673,351
------------
<PAGE>
TOTAL COMMON STOCKS
& WARRANTS
(Cost $495,910,443) 658,886,717
------------
PREFERRED STOCKS 2.54%
BIOTECHNOLOGY 1.56%
Cambridge Heart, Series A
Conv Pfd*^~ 1,200,000 1,800,000
Ingenex Inc, Series B Pfd*^~ 103,055 600,000
Janus Biomedical, Series A
Conv Pfd*^~ 400,000 1,000,000
MedClone Inc, Series G
Conv Pfd*^ 581,396 697,675
Multum Information Services
Series C Pfd*^~ 571,429 1,468,573
OrbTek Inc, Series A
Conv Pfd*^ 476,190 999,999
Osiris Therapeutics, Series C
Conv Pfd*^ 382,353 1,300,000
Physicians Online, Series A
Conv Pfd*^ 361,350 3,219,628
Titan Pharmaceuticals, Series A
Pfd*^~ 922,617 2,306,543
Unisyn Technologies, Series A
Conv Pfd*^~ 359,501 359,501
------------
13,751,919
------------
MEDICAL PRODUCTS 0.40%
Cardiometrics Inc, Series C
Conv Pfd*^ 375,000 1,500,000
Clarus Medical Systems
Series I Conv Pfd*^~ 533,320 399,990
Series II Conv Pfd*^~ 111,196 83,397
Landec Corp, Series D
Conv Pfd*^~ 1,086,957 1,500,001
------------
3,483,388
------------
MEDICAL SERVICES 0.58%
Advanced Health
Series A Conv Pfd*^ 485,900 3,187,504
Series B Conv Pfd*^ 282,900 1,892,601
------------
5,080,105
------------
TOTAL PREFERRED STOCKS
(Cost $17,583,027) 22,315,412
------------
FIXED INCOME SECURITIES 0.03%
BIOTECHNOLOGY 0.01%
MedClone Inc
10.000%, Promissory Notes^ 73,680 73,680
------------
MEDICAL EQUIPMENT & SUPPLIES 0.02%
Tetrad Corp
6.000%, Conv Promissory
Notes^> 500,000 100
10.000%, Sr Sub Promissory
Notes^** 147,000 147,000
------------
147,100
------------
<PAGE>
MEDICAL SERVICES 0.00%
Medical Associates of America
Conv Sr Notes
7.000%, 2/28/1999*^> 1,689,904 100
------------
TOTAL FIXED INCOME SECURITIES
(Cost $2,410,584) 220,880
------------
OTHER SECURITIES 0.64%
MEDICAL RELATED - DRUGS 0.64%
Dura Pharmaceuticals/Dura
Delivery Systems Units *^ (Each unit
consists of one callable cmn shr, one
"W" wrnt to purchase 1.40 shrs of Dura
Pharmaceuticals and one callable wrnt
to purchase 1.30 shrs of Dura Pharmaceuticals)
(Cost $1,200,000) 120,000 5,653,200
------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 21.72%
DIVERSIFIED COMPANIES 3.61%
General Electric
5.700%, 11/6/1995 31,714,000 31,714,000
------------
FINANCE RELATED 18.11%
Chevron Oil Finance
5.730%, 11/1/1995 19,469,000 19,469,000
5.720%, 11/1/1995 20,000,000 20,000,000
Ford Motor Credit
5.740%, 11/8/1995 32,233,000 32,233,000
General Motors Acceptance
5.780%, 11/3/1995 16,819,000 16,819,000
Household Finance
5.700%, 11/1/1995 31,310,000 31,310,000
Sears Roebuck Acceptance
5.800%, 11/9/1995 6,879,000 6,879,000
5.760%, 11/10/1995 32,233,000 32,233,000
------------
158,943,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $190,657,000) 190,657,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $707,761,054) (Cost for
Income Tax Purposes $708,733,178) $877,733,209
============
LEISURE Portfolio
COMMON STOCKS 85.08%
ADVERTISING 1.89%
Heritage Media Class A* 95,200 2,641,800
Katz Media Group* 125,000 2,250,000
------------
4,891,800
------------
<PAGE>
AUDIO/VIDEO RELATED 3.58%
Granada Group PLC UK 500,000 5,333,302
Harman International Industries 85,470 3,942,304
------------
9,275,606
------------
BROADCASTING 17.67%
Australis Media Ltd* AS 3,000,000 2,236,458
Capital Cities/ABC 25,000 2,965,625
Central European Media
Enterprises Ltd Class A* BD 102,800 2,364,400
Evergreen Media Class A* 75,000 2,043,750
HTV Group PLC UK 100,000 410,254
Heftel Broadcasting Class A* 150,000 2,737,500
King World Productions* 70,000 2,441,250
Lin Television* 192,000 5,496,000
Renaissance Communications* 146,250 3,272,344
Sinclair Broadcast Group Class A* 10,750 223,063
Television Broadcasts Ltd HK 200,000 801,882
Television Broadcasts Ltd ADR^ HK 750,000 3,007,050
Turner Broadcasting System
Class B 250,000 6,468,750
United Video Satellite Group
Class A* 135,000 3,476,250
ValueVision International
Class A* 500,000 2,625,000
Viacom Inc
Class A* 13,040 648,740
Class B* 68,802 3,440,100
Yorkshire-Tyne Tees Television
Holdings PLC UK 129,000 1,160,230
------------
45,818,646
------------
BUILDING & CONSTRUCTION
RELATED 1.04%
Lowe's Cos 100,000 2,700,000
------------
CABLE TELEVISION 3.89%
Comcast Corp Special Class A 150,000 2,681,250
Rogers Communications Class B* CA 100,000 975,825
TCA Cable TV 100,000 2,962,500
Tele-Communications Inc -
Liberty Media Group Series A* 37,500 923,437
Tele-Communications Inc -
TCI Group Series A* 150,000 2,550,000
------------
10,093,012
------------
COMPUTER RELATED 1.14%
Sierra On-Line* 52,200 1,944,450
Spectrum HoloByte* 98,100 1,005,525
------------
2,949,975
------------
ELECTRONICS 0.59%
Carlton Communications PLC UK 100,000 1,521,096
------------
FINANCE RELATED 3.07%
Block (H & R) Inc 75,000 3,093,750
Sotheby's Holdings Class A 350,000 4,856,250
-----------
7,950,000
------------
<PAGE>
FOOD PRODUCTS & BEVERAGES 2.50%
PT Sekar Bumi Foreign Shrs* ID 400,000 475,200
Seagram Co Ltd CA 167,000 6,012,000
------------
6,487,200
------------
GAMING 12.26%
Argosy Gaming* 200,000 1,850,000
Aztar Corp* 50,000 406,250
Bally Entertainment* 100,000 1,100,000
Boyd Gaming* 50,000 681,250
Circus Circus Enterprises* 150,000 3,993,750
Grand Casinos* 100,000 3,975,000
Harrah's Entertainment* 242,600 6,004,350
MGM Grand* 100,000 2,387,500
Mirage Resorts* 150,000 4,912,500
Players International* 314,500 3,380,875
Trump Hotels & Casino Resorts* 182,200 3,097,400
------------
31,788,875
------------
HOTELS 5.97%
HFS Inc* 114,800 7,031,500
Hammons (John Q) Hotels
Class A* 200,000 2,350,000
Hilton Hotels 30,000 2,010,000
Studio Plus Hotels* 210,000 4,095,000
------------
15,486,500
------------
MOTION PICTURES & TELEVISION 0.29%
Cinergi Pictures Entertainment* 200,000 762,500
------------
PRINTING & PUBLISHING 4.50%
Houghton Mifflin 75,000 3,075,000
McGraw-Hill Cos 75,000 6,140,625
Pearson PLC UK 100,000 992,499
Time Warner 40,000 1,460,000
------------
11,668,124
------------
RECREATION PRODUCTS
& SERVICES 5.42%
Anthony Industries 150,000 2,793,750
Disney (Walt) Co 90,000 5,186,250
Gaylord Entertainment Class A 121,485 3,128,239
Nintendo Corp Ltd JA 40,000 2,941,824
------------
14,050,063
------------
RETAIL 14.33%
Boston Chicken* 305,000 10,312,812
Harcourt General 144,000 5,706,000
Landry's Seafood Restaurants* 250,000 3,375,000
Melville Corp 100,000 3,200,000
Moovies Inc* 175,000 2,865,625
Movie Gallery* 75,000 2,887,500
Price/Costco Inc* 200,000 3,400,000
Rite-Aid Corp 200,000 5,400,000
------------
37,146,937
------------
<PAGE>
TELECOMMUNICATIONS 3.29%
Rogers Cantel Mobile
Communications Class B* CA 100,000 2,075,000
Tele-Communications
International Class A* 285,700 6,463,963
------------
8,538,963
------------
TOBACCO 0.89%
PT HM Sampoerna Foreign Shrs ID 250,000 2,310,000
------------
UTILITIES 2.76%
U S WEST 150,000 7,143,750
------------
TOTAL COMMON STOCKS
(Cost $210,512,461) 220,583,047
------------
PREFERRED STOCKS 0.55%
MOTION PICTURES & TELEVISION 0.55%
Village Roadshow Ltd, Pfd
(Cost $1,063,022) AS 500,000 1,430,116
------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 14.37%
DIVERSIFIED COMPANIES 3.18%
General Electric
5.720%, 11/3/1995 8,231,000 8,231,000
------------
FINANCE RELATED 9.74%
Ford Motor Credit
5.720%, 11/2/1995 8,230,000 8,230,000
General Motors Acceptance
5.760%, 11/6/1995 8,516,000 8,516,000
Sears Roebuck Acceptance
5.750%, 11/3/1995 8,516,000 8,516,000
------------
25,262,000
------------
OIL & GAS RELATED 1.45%
Texaco Inc
5.750%, 11/8/1995 3,756,000 3,756,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $37,249,000) 37,249,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $248,824,483) (Cost for
Income Tax Purposes $248,874,983) $259,262,163
============
<PAGE>
TECHNOLOGY Portfolio
COMMON STOCKS 96.71%
BIOTECHNOLOGY 3.28%
Amgen Inc* 100,000 4,800,000
Genzyme Corp* 150,000 8,737,500
Gilead Sciences* 100,000 1,950,000
Neurogen Corp* 105,400 2,345,150
------------
17,832,650
------------
BROADCASTING 0.00%
Future Communications* 160,000 1
------------
COMPUTER GRAPHICS 1.34%
Cadence Design Systems* 225,000 7,256,250
------------
COMPUTER LOCAL NETWORKS 2.79%
Apertus Technologies* 125,000 1,328,125
Bay Networks* 150,000 9,937,500
cisco Systems* 50,000 3,875,000
------------
15,140,625
------------
COMPUTER PERIPHERALS
& SUPPLIES 1.91%
Adaptec Inc* 100,000 4,450,000
Microchip Technology* 150,000 5,953,125
------------
10,403,125
------------
COMPUTER SERVICES 9.91%
Analysts International 125,500 3,717,937
Cambridge Technology Partner* 125,000 7,093,750
Ceridian Corp* 200,000 8,700,000
Control Data Systems* 300,000 3,975,000
General Motors Class E 300,000 14,137,500
MICROS Systems* 185,000 6,891,250
National Data 227,750 6,035,375
Technology Solutions* 200,000 3,300,000
------------
53,850,812
------------
COMPUTER SOFTWARE 14.06%
Ascend Communications* 200,000 13,000,000
BDM International* 100,000 2,500,000
Cellular Technical Services* 125,000 2,125,000
Cognos Inc* 150,000 4,781,250
Computer Horizons* 100,000 2,600,000
Computervision Corp* 200,000 2,350,000
Cooper & Chyan Technology* 14,200 200,575
Dataworks Corp* 3,000 41,625
Innovus Corp* 167,000 1,492,563
Intuit Inc* 200,000 14,400,000
Kronos Inc* 90,000 4,140,000
Logic Works* 25,000 381,250
MacNeal-Schwendler Corp 200,000 3,050,000
Microcom Inc* 170,000 3,718,750
Oracle Systems* 200,000 8,725,000
PLATINUM technology* 100,000 1,825,000
Radisys Corp* 129,500 1,505,437
State Of The Art* 390,000 4,192,500
Wind River Systems* 200,000 5,400,000
------------
76,428,950
------------
COMPUTER SYSTEMS 12.02%
Cognex Corp* 50,000 2,987,500
Comverse Technology* 400,000 9,100,000
Digital Equipment* 150,000 8,118,750
<PAGE>
HBO & Co 200,000 14,150,000
Hewlett-Packard Co 50,000 4,631,250
International Business Machines 100,000 9,725,000
Micron Electronics* 300,000 6,225,000
Silicon Graphics* 150,000 4,987,500
VeriFone Inc* 200,000 5,400,000
------------
65,325,000
------------
ELECTRICAL EQUIPMENT 2.10%
Itron Inc* 150,000 4,350,000
Vishay Intertechnology* 200,000 7,050,000
------------
11,400,000
------------
ELECTRONICS 15.44%
Analog Devices* 150,000 5,418,750
Avnet Inc 100,000 5,037,500
Brooktree Corp* 170,000 2,040,000
Euphonix Inc* 120,000 1,095,000
Genus Inc* 27,500 220,000
Jabil Circuit* 250,000 4,218,750
MEMC Electronic Materials* 375,000 12,000,000
Nokia Corp Sponsored ADR
Representing Ord A Shrs 350,000 19,512,500
Sanmina Holdings* 100,000 5,400,000
Solectron Corp* 300,000 12,075,000
SpeedFam International* 150,000 2,456,250
Tektronix Inc 100,000 5,925,000
Texas Instruments 100,000 6,825,000
Veeco Instruments* 70,000 1,680,000
------------
83,903,750
------------
EXPLORATION & MINING 2.28%
Diamond Fields Resources* 600,000 10,761,957
Zemex Corp* 178,500 1,651,125
------------
12,413,082
------------
FINANCE RELATED 6.98%
Block (H & R) Inc 250,000 10,312,500
Equifax Inc 200,000 7,800,000
First Data 300,000 19,837,500
------------
37,950,000
------------
MEDICAL PRODUCTS 3.40%
Biomet Inc* 200,000 3,325,000
Nellcor Puritan Bennett* 176,000 10,120,000
Sepracor Inc* 300,000 5,062,500
------------
18,507,500
------------
MEDICAL RELATED - DRUGS 3.53%
Alteon Inc* 50,000 468,750
American Home Products 100,000 8,862,500
Forest Laboratories* 200,000 8,275,000
SangStat Medical* 200,000 1,550,000
------------
19,156,250
------------
<PAGE>
OIL & GAS RELATED 2.83%
Halliburton Co 150,000 6,225,000
Petroleum Geo-Services A/S
Sponsored ADR* 150,000 2,906,250
Schlumberger Ltd 100,000 6,225,000
------------
15,356,250
------------
PROTECTION - SAFETY EQUIPMENT
& SERVICES 1.74%
Lo-Jack Corp* 150,000 2,325,000
Pittway Corp Class A 119,000 7,125,125
------------
9,450,125
------------
RECREATION PRODUCTS
& SERVICES 0.32%
International Game Technology 150,000 1,743,750
------------
SCHOOLS 0.30%
National Education* 200,000 1,625,000
------------
SCIENTIFIC INSTRUMENTS 0.89%
Thermo Electron* 105,000 4,830,000
------------
SEMICONDUCTOR EQUIPMENT 4.39%
Applied Materials* 200,000 10,025,000
Micron Technology 100,000 7,062,500
SGS-THOMSON Microelectronics
New York Shrs* 150,000 6,787,500
------------
23,875,000
------------
SHIP BUILDING 0.41%
Avondale Industries* 150,000 2,250,000
------------
TELECOMMUNICATIONS 6.79%
Ericsson (L M) Telephone ADR
Representing Class B Shrs 600,000 12,815,625
Global Village Communication* 200,000 3,400,000
Octel Communications* 300,000 10,237,500
Pairgain Technologies* 150,000 6,412,500
WinStar Communications* 200,000 3,325,000
Wireless One* 60,000 705,000
------------
36,895,625
------------
TOTAL COMMON STOCKS
(Cost $424,051,597) 525,593,745
------------
PREFERRED STOCKS 0.43%
BIOTECHNOLOGY 0.05%
Ingenex Inc, Series B Pfd*^ 51,527 300,000
------------
DIVERSIFIED COMPANIES 0.17%
Alpine Group, 9%
Cum Conv Pfd*^ 1,000 900,000
------------
MEDICAL RELATED - DRUGS 0.21%
Titan Pharmaceuticals
Series A Pfd*^ 461,309 1,153,273
------------
TOTAL PREFERRED STOCKS
(Cost $2,300,035) 2,353,273
------------
<PAGE>
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 2.86%
FINANCE RELATED 2.86%
Associates Corp of North America
5.870%, 11/1/1995 5,540,000 5,540,000
Deere (John) Capital
5.750%, 11/7/1995 10,000,000 10,000,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $15,540,000) 15,540,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $441,891,632) (Cost for
Income Tax Purposes $442,353,092) $543,487,018
============
UTILITIES Portfolio
COMMON STOCKS, RIGHTS
& WARRANTS 77.29%
AUDIO/VIDEO RELATED 3.30%
Granada Group PLC UK 420,000 4,479,974
------------
BROADCASTING 3.60%
Scottish Television PLC UK 104,000 810,662
Television Broadcasts Ltd HK 742,000 2,974,987
United Television 13,000 1,108,250
------------
4,893,899
------------
CHEMICALS 0.90%
Agrium Inc CA 30,000 1,230,000
------------
COMPUTER RELATED 0.42%
CIS Technologies* 22,800 79,800
Olicom A/S* DA 36,000 486,000
------------
565,800
------------
ELECTRICAL EQUIPMENT 0.80%
Vertex Communications* 65,000 1,080,625
------------
OIL & GAS RELATED 10.45%
Amoco Corp 33,000 2,107,875
Enron Corp 35,000 1,203,125
Forcenergy Gas Exploration
Rights*@^ 9,342 0
MAPCO Inc 10,000 515,000
Oil Search Ltd PP 600,000 506,626
Panaco Inc* 170,000 786,250
Panhandle Eastern 5,000 126,250
Petro-Canada CA 100,000 1,075,000
Petro-Canada represented by
Installment Receipts~~ CA 442,000 2,099,500
Santa Fe Energy Resources* 32,800 291,100
Shell Transport & Trading
PLC New York Shrs UK 36,000 2,565,000
<PAGE>
Sonat Inc 82,000 2,357,500
Total Petroleum
North America Ltd CA 20,000 202,500
USX-Delhi Group 40,000 355,000
------------
14,190,726
------------
TELECOMMUNICATIONS 4.22%
American Paging* 30,000 228,750
Cable & Wireless
PLC Sponsored ADR UK 20,000 387,500
Cellular Communications
of Puerto Rico* 50,000 1,445,313
Frontier Corp 25,000 675,000
Lincoln Telecommunications 53,000 914,250
Rogers Cantel Mobile
Communications Class B* CA 100,000 2,075,000
------------
5,725,813
------------
Utilities 53.60%
DIVERSIFIED 0.12%
Citizens Utilities Series B 15,000 166,875
------------
ELECTRIC 29.79%
Bangor Hydro-Electric 65,000 763,750
Central Hudson
Gas & Electric 49,000 1,500,625
Central Maine Power 13,800 191,475
CIPSCO Inc 36,000 1,318,500
Commonwealth Energy
Systems SBI 79,400 3,364,575
Dominion Resources 26,500 1,053,375
Eastern Utilities Associates 50,000 1,175,000
Entergy Corp 117,300 3,343,050
General Public Utilities 21,500 671,875
IES Industries 185,800 4,946,925
Idaho Power 30,000 832,500
Interstate Power 33,900 983,100
KU Energy 10,000 296,250
Kansas City Power & Light 23,000 572,125
Montana Power 80,000 1,820,000
Oklahoma Gas & Electric 35,000 1,400,000
Orange & Rockland Utilities 40,000 1,405,000
Public Service of Colorado 165,000 5,630,625
Public Service of New Mexico* 40,000 670,000
Puget Sound Power & Light 45,000 1,023,750
Rochester Gas & Electric 184,100 4,326,350
Sierra Pacific Resources 15,000 350,625
TNP Enterprises 70,200 1,272,375
Tucson Electric Power* 50,000 150,000
United Illuminating 14,200 539,600
Western Resources 25,000 840,625
York Research Class A
Warrants* (Exp 1995) 2,042 19,950
------------
40,462,025
------------
GAS 4.50%
Chesapeake Utilities 60,400 890,900
Columbia Gas System* 40,000 1,540,000
Equitable Resources 73,000 2,135,250
<PAGE>
New Jersey Resources 35,000 875,000
NICOR Inc 25,000 671,875
------------
6,113,025
------------
TELEPHONE 19.19%
ALLTEL Corp 20,000 612,500
Century Telephone
Enterprises 45,000 1,305,000
Cincinnati Bell 91,000 2,673,125
NYNEX Corp 80,000 3,760,000
Southern New England
Telecommunications 123,500 4,461,437
Sprint Corp 75,500 2,906,750
Telefonica de Espana
SA Sponsored ADR SP 15,000 564,375
Telephone & Data Systems 32,000 1,280,000
U S WEST
Communications Group*~~ 230,000 6,583,750
U S WEST Mediavision Group*~~ 100,000 1,912,500
------------
26,059,437
------------
TOTAL UTILITIES 72,801,362
------------
TOTAL COMMON STOCKS,
RIGHTS & WARRANTS
(Cost $101,127,255) 104,968,199
------------
PREFERRED STOCKS 8.80%
OIL & GAS RELATED 1.89%
Coastal Corp, 8.50%
Series H Pfd 100,000 2,562,500
------------
UTILITIES 6.91%
Alabama Power, 7.60%
Class A Pfd 90,000 2,295,000
Consumers Power, $2.08
Class A Pfd 50,000 1,268,750
Niagara Mohawk Power
9.50%, Series M Pfd 138,000 3,260,250
Texas Utilities Electric
Depository Shrs (Each shr
represents one-fourth of a
$7.22, Series B Pfd Shr) 100,000 2,562,500
------------
9,386,500
------------
TOTAL PREFERRED STOCKS
(Cost $10,985,835) 11,949,000
------------
FIXED INCOME SECURITIES 6.30%
OIL & GAS 0.74%
Forcenergy Gas Exploration
Exch Conv Sub Notes^
7.000%, 9/15/2000 1,000,000 1,000,000
------------
UTILITIES 5.56%
Bell Telephone of Pennsylvania
Deb, 7.500%, 5/1/2013+ 3,000,000 3,012,582
Consolidated Natural Gas, Deb
8.625%, 12/1/2011 1,500,000 1,583,434
<PAGE>
GTE South, Deb
7.250%, 8/1/2002 1,000,000 1,038,705
GTE Southwest, Series A, Deb
5.820%, 12/1/1999 915,000 896,849
Southern Bell Telephone
& Telegraph, Deb
7.625%, 3/15/2013 1,000,000 1,021,697
------------
7,553,267
------------
TOTAL FIXED INCOME
SECURITIES
(Cost $8,597,881) 8,553,267
------------
SHORT-TERM INVESTMENTS 7.61%
US Government Obligations 1.83%
US Treasury Bills
6.480%, 11/16/1995 2,500,000 2,494,633
------------
Commercial Paper 5.78%
FINANCE RELATED 5.78%
Associates Corp of North America
5.870%, 11/1/1995 3,920,000 3,920,000
Prudential Funding
5.820%, 11/1/1995 3,928,000 3,928,000
------------
7,848,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $10,341,176) 10,342,633
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $131,052,147) (Cost for
Income Tax Purposes $131,061,994) $135,813,099
============
* Security is non-income producing.
@ Security has no market value at October 31, 1995.
~ Security is an affiliated company (See Note 5).
~~ Security is a when-issued security.
# Also represents cost for income tax purposes.
** Security is a defaulted security with respect to cumulative interest
payments of $9,168 at October 31, 1995. Subsequent to year-end the
security was devalued to $100.
> Securities are defaulted securities with respect to cumulative interest
payments at October 31, 1995. The securities have been devalued to $100
each.
Cumulative
Defaulted
Interest
Security Payments
- --------------------------------------------------------------------------------
Health Sciences Portfolio
Tetrad Corp, 6%, Conv Promissory Notes $ 31,667
Medical Associates of America, Conv Sr Notes
7.000%, 2/28/1999 118,833
<PAGE>
^ The following are restricted securities at October 31, 1995:
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- --------------------------------------------------------------------------------
Energy Portfolio
Forcenergy Gas
Exploration, Exch
Conv Sub Notes
7.000% 9/15/2000 9/16/93 $ 1,000,000 2.07%
Forcenergy Gas
Exploration Rights 6/14/94 0 0.00
-------
2.07%
=======
Environmental Services Portfolio
Cyclean Inc
Series D Pfd 3/16/94 500,000 0.51%
Gold Portfolio
Canyon Resources,
Conv Sub Notes 6.000%, 6/1/1998 5/20/93 2,000,000 0.96%
=======
Health Sciences Portfolio
Advanced Health
Series A Conv Pfd 3/29/94 48,590 0.37%
Series B Conv Pfd 3/17/94 2,000,103 0.22
Cambridge Heart
Series A Conv Pfd 9/30/93 1,200,000 0.21
Cardiometrics Inc
Series C Conv Pfd 3/18/93 1,500,000 0.17
Clarus Medical Systems
Series I Conv Pfd 5/3/95 2,000,000 0.05
Series II Conv Pfd 5/3/95 111,196 0.01
Warrants 5/3/95 0 0.00
Crown Laboratories 8/24/93 1,139,699 0.14
Diametrics Medical 6/21/94 2,499,996 0.37
Dura Pharmaceuticals/
Dura Delivery
Systems Units 9/28/93 1,200,000 0.66
Ecogen Technologies I 11/18/92-
3/14/94 1,140,000 0.15
Electroscope Inc 4/28/93 787,500 0.09
Electroscope Inc
Warrants 4/27/93 0 0.00
Ingenex Inc, Series B
Pfd 9/28/94 600,000 0.07
Janus Biomedical
Series A Conv Pfd 3/03/94 1,000,000 0.12
KeraVision Inc
Series E 11/20/92 1,500,000 0.27
Landec Corp
Series D Conv Pfd 7/6/93 1,500,001 0.17
MedClone Inc, 10.000%
Promissory Notes 12/7/94-
6/29/95 73,680 0.01
Series G Conv Pfd 10/22/93 1,000,001 0.08
Warrants 10/22/93 0 0.00
<PAGE>
Medical Associates
of America 1/28/93 502,935 0.00
Medical Associates
of America, Conv
Sr Notes
7.000%, 2/28/1999 1/28/93-
3/1/94 1,689,904 0.00
Metra Biosystems 7/6/95 1,700,001 0.44
Multum Information
Services, Series C
Pfd 12/31/93 1,000,001 0.17
OrbTek Inc, Series A
Conv Pfd 5/13/94 999,999 0.12
Osiris Therapeutics
Series C Conv Pfd 5/27/94 1,300,000 0.15
Physicians Online
Series A Conv Pfd 8/31/93 963,600 0.37
Sparta
Pharmaceuticals 6/28/94 1,000,000 0.13
Tetrad Corp
6.000%, Conv Promissory
Notes 4/12/94 500,000 0.00
10.000%, Sr Sub
Promissory Notes 3/17/95 147,000 0.02
Titan Pharmaceuticals
Series A Pfd 7/19/93-
4/12/95 2,000,035 0.27
Unisyn Technologies 2/28/94-
12/30/94 1,500,000 0.00
Unisyn Technologies
Series A Conv Pfd 12/27/94 359,501 0.04
Xenometrix Inc 1/7/94-
10/26/95 1,400,000 0.10
-------
4.97%
=======
Leisure Portfolio
Television Broadcasts
Ltd ADR 9/2/93-
2/13/95 2,654,121 1.13%
=======
Technology Portfolio
Alpine Group
9%, Cum Conv Pfd 4/21/92 1,000,000 0.16%
Ingenex Inc
Series B Pfd 9/27/94 300,000 0.05
Titan Pharmaceuticals
Series A Pfd 7/20/93 1,000,035 0.21
-------
0.42%
=======
Utilities Portfolio
Forcenergy Gas Exploration
Exch Conv Sub Notes
7.000%, 9/15/2000 9/16/93 1,000,000 0.74%
Forcenergy Gas
Exploration Rights 6/14/94 0 0.00
-------
0.74%
=======
<PAGE>
Summary of Investments by Country
% of
Country Investment
Country Code Securities Value
- --------------------------------------------------------------------------------
Energy Portfolio
Canada CA 0.86% $ 373,602
France FR 2.13 926,250
Netherlands NL 4.24 1,843,125
Norway NO 6.01 2,609,660
Papua New Guinea PP 0.97 422,189
United Kingdom UK 8.99 3,904,825
United States US 76.80 33,372,362
-------------------------
100.00% $43,452,013
=========================
Gold Portfolio
Australia AS 3.84% $ 5,692,571
Canada CA 76.05 112,850,638
France FR 1.04 1,536,785
Switzerland SZ 3.63 5,384,951
United States US 15.44 22,917,450
-------------------------
100.00% $148,382,395
=========================
Leisure Portfolio
Australia AS 1.41% $ 3,666,574
Bermuda BD 0.91 2,364,400
Canada CA 3.50 9,062,825
Hong Kong HK 1.47 3,808,932
Indonesia ID 1.07 2,785,200
Japan JA 1.14 2,941,824
United Kingdom UK 3.63 9,417,381
United States US 86.87 225,215,027
-------------------------
100.00% $259,262,163
=========================
Utilities Portfolio
Canada CA 4.92% $ 6,682,000
Denmark DA 0.36 486,000
Hong Kong HK 2.19 2,974,987
Papua New Guinea PP 0.37 506,626
Spain SP 0.42 564,375
United Kingdom UK 6.07 8,243,136
United States US 85.67 116,355,975
-------------------------
100.00% $135,813,099
=========================
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities
October 31, 1995
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investment Securities:
At Cost~ $43,817,216 $ 21,504,437 $381,810,469 $164,515,903
=================================================================
At Value~ $43,452,013 $ 22,040,756 $ 411,280,558 $148,382,395
Cash 0 403,813 197,122 0
Receivables:
Investment Securities Sold 6,101,068 490,529 0 4,205,943
Fund Shares Sold 2,220,515 113,733 1,484,081 553,293
Dividends and Interest 79,591 24,408 587,407 413,703
Prepaid Expenses and Other Assets 23,329 10,976 40,793 35,994
-----------------------------------------------------------------
TOTAL ASSETS 51,876,516 23,084,215 413,589,961 153,591,328
-----------------------------------------------------------------
LIABILITIES
Payables:
Custodian 319,535 0 0 1,076,668
Distributions to Shareholders 15,095 4,892 206,748 8,605
Investment Securities Purchased 2,189,126 250,500 818,684 0
Fund Shares Repurchased 1,063,906 69,831 2,494,874 703,013
Accrued Expenses and Other Payables 5,252 3,041 21,339 24,046
-----------------------------------------------------------------
TOTAL LIABILITIES 3,592,914 328,264 3,541,645 1,812,332
-----------------------------------------------------------------
Net Assets at Value $48,283,602 $22,755,951 $410,048,316 $151,778,996
=================================================================
NET ASSETS
Paid-in Capital* $53,360,744 $24,985,905 $356,009,706 $183,211,254
Accumulated Undistributed
Net Investment Income 4,565 9,960 5,816 7,616
Accumulated Undistributed Net
Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions (4,716,504) (2,776,233) 24,562,705 (15,306,346)
Net Appreciation (Depreciation)
of Investment Securities and
Foreign Currency Transactions (365,203) 536,319 29,470,089 (16,133,528)
-----------------------------------------------------------------
Net Assets at Value $48,283,602 $22,755,951 $410,048,316 $151,778,996
=================================================================
Shares Outstanding 4,787,269 2,800,855 21,635,689 29,138,917
Net Asset Value, Offering and
Redemption Price per Share $10.09 $ 8.12 $18.95 $ 5.21
=================================================================
<FN>
~ Investment securities at cost and value at October 31, 1995 include a
repurchase agreement of $5,422,000 for the Environmental Services Portfolio.
* The Fund has one billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual Portfolio.
</FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities (Continued)
October 31, 1995
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investment Securities:
At Cost $707,761,054 $248,824,483 $441,891,632 $131,052,147
=================================================================
At Value $877,733,209 $259,262,163 $543,487,018 $135,813,099
Cash 266,788 147,719 1,577,646 30,973
Foreign Currency~ 0 2,961,055 0 0
Receivables:
Investment Securities Sold 2,875,925 6,062,981 26,483,821 12,613,190
Fund Shares Sold 6,526,570 303,429 1,779,443 323,903
Dividends and Interest 350,874 247,885 48,328 720,554
Prepaid Expenses and Other Assets 71,108 31,941 57,993 28,841
-----------------------------------------------------------------
TOTAL ASSETS 887,824,474 269,017,173 573,434,249 149,530,560
=================================================================
LIABILITIES
Payables:
Distributions to Shareholders 0 32,610 0 72,400
Investment Securities Purchased 17,395,207 2,979,854 3,155,290 14,517,979
Fund Shares Repurchased 9,471,633 803,262 7,150,689 460,932
Accrued Expenses and Other Payables 31,826 20,883 19,502 11,748
-----------------------------------------------------------------
TOTAL LIABILITIES 26,898,666 3,836,609 10,325,481 15,063,059
-----------------------------------------------------------------
Net Assets at Value $860,925,808 $265,180,564 $563,108,768 $134,467,501
=================================================================
NET ASSETS
Paid-in Capital* $618,502,060 $220,976,559 $366,128,868 $133,418,825
Accumulated Undistributed Net
Investment Income (Loss) (11,852) 2,648 (6,696) 130,418
Accumulated Undistributed Net
Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions 72,463,445 33,781,807 95,391,210 (3,842,689)
Net Appreciation of Investment Securities
and Foreign Currency Transactions 169,972,155 10,419,550 101,595,386 4,760,947
-----------------------------------------------------------------
Net Assets at Value $860,925,808 $265,180,564 $563,108,768 $134,467,501
=================================================================
Shares Outstanding 17,056,506 11,151,317 16,402,408 12,670,733
Net Asset Value, Offering and Redemption
Price per Share $50.47 $23.78 $34.33 $10.61
=================================================================
<FN>
~ Foreign Currency Cost at October 31, 1995 was $2,979,854 for the Leisure Portfolio.
* The Fund has one billion authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual Portfolio.
</FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations
Year Ended October 31, 1995
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------
INVESTMENT INCOME
INCOME
<S> <C> <C> <C> <C>
Dividends $ 1,005,584 $ 214,273 $ 6,867,557 $ 2,220,601
Interest 356,033 459,224 2,561,934 712,168
Foreign Taxes Withheld (31,845) (2,011) 0 (83,324)
-----------------------------------------------------------------
TOTAL INCOME 1,329,772 671,486 9,429,491 2,849,445
-----------------------------------------------------------------
EXPENSES
Investment Advisory Fees 454,001 234,331 2,128,548 1,544,711
Transfer Agent Fees 304,482 250,666 1,083,492 826,471
Administrative Fees 19,080 14,686 52,704 40,898
Custodian Fees and Expenses 27,539 12,583 56,838 68,648
Directors' Fees and Expenses 10,789 9,104 22,217 21,997
Professional Fees and Expenses 14,833 13,142 24,367 21,581
Registration Fees and Expenses 55,107 32,277 56,027 87,327
Reports to Shareholders 36,370 32,978 148,597 95,872
Other Expenses 3,412 2,809 8,823 10,199
-----------------------------------------------------------------
TOTAL EXPENSES 925,613 602,576 3,581,613 2,717,704
Fees and Expenses Absorbed by
Investment Adviser 0 (112,768) 0 0
Fees Paid Indirectly (32,067) (21,146) (138,277) (142,205)
-----------------------------------------------------------------
NET EXPENSES 893,546 468,662 3,443,336 2,575,499
-----------------------------------------------------------------
NET INVESTMENT INCOME 436,226 202,824 5,986,155 273,946
-----------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions (651,948) 9,733,774 28,781,212 (9,619,639)
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign Currency
Transactions (2,001,837) (1,928,995) 26,811,946 (12,084,161)
-----------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENT SECURITIES (2,653,785) 7,804,779 55,593,158 (21,703,800)
-----------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations $(2,217,559) $ 8,007,603 $61,579,313 $(21,429,854)
=================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations (Continued)
Year Ended October 31, 1995
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------
INVESTMENT INCOME
INCOME
<S> <C> <C> <C> <C>
Dividends $ 2,777,946 $ 2,299,986 $ 1,931,818 $ 5,384,885
Interest 3,400,892 2,034,830 2,492,059 1,750,996
Foreign Taxes Withheld (1,162) (95,181) (27,828) (60,191)
-----------------------------------------------------------------
TOTAL INCOME 6,177,676 4,239,635 4,396,049 7,075,690
-----------------------------------------------------------------
EXPENSES
Investment Advisory Fees 4,221,937 2,063,891 3,210,186 952,421
Transfer Agent Fees 1,991,219 1,099,340 1,236,694 481,868
Administrative Fees 99,730 51,278 76,216 29,048
Custodian Fees and Expenses 99,976 79,954 94,313 44,368
Directors' Fees and Expenses 36,907 22,485 27,010 14,405
Professional Fees and Expenses 44,112 24,520 31,564 19,676
Registration Fees and Expenses 68,318 52,135 77,876 44,175
Reports to Shareholders 283,568 151,385 163,627 63,296
Other Expenses 14,184 9,123 9,966 6,017
-----------------------------------------------------------------
TOTAL EXPENSES 6,859,951 3,554,111 4,927,452 1,655,274
Fees and Expenses Absorbed
by Investment Adviser 0 0 0 (160,702)
Fees Paid Indirectly (230,506) (175,338) (245,407) (97,688)
-----------------------------------------------------------------
NET EXPENSES 6,629,445 3,378,773 4,682,045 1,396,884
-----------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (451,769) 860,862 (285,996) 5,678,806
-----------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions 85,687,476 33,968,704 96,331,634 (971,514)
-----------------------------------------------------------------
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign Currency
Transactions 135,563,223 (8,985,890) 64,454,697 11,041,948
-----------------------------------------------------------------
NET GAIN ON INVESTMENT SECURITIES 221,250,699 24,982,814 160,786,331 10,070,434
-----------------------------------------------------------------
Net Increase in Net Assets
from Operations $220,798,930 $25,843,676 $160,500,335 $15,749,240
=================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets
Year Ended October 31
<TABLE>
<CAPTION>
Energy Environmental Services Financial Services
Portfolio Portfolio Portfolio
------------------------ ----------------------- -----------------------
1995 1994 1995 1994 1995 1994
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $436,226 $380,018 $202,824 $304,551 $5,986,155 $4,996,509
Net Realized Gain (Loss)
on Investment Securities
and Foreign Currency
Transactions (651,948) (2,933,404) 9,733,774 (5,715,283) 28,781,212 (3,719,894)
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (2,001,837) 160,686 (1,928,995) 1,289,039 26,811,946(10,350,543)
------------------------ ----------------------- -----------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS (2,217,559) (2,392,700) 8,007,603 (4,121,693) 61,579,313 (9,073,928)
------------------------ ----------------------- -----------------------
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income (430,850) (407,884) (210,661) (286,754) (5,997,327) (5,006,924)
Net Realized Gain on
Investment Securities 0 0 0 0 0(73,127,866)
------------------------ ----------------------- -----------------------
TOTAL DISTRIBUTIONS (430,850) (407,884) (210,661) (286,754) (5,997,327)(78,134,790)
------------------------ ----------------------- -----------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 254,345,190 291,316,361 104,904,724 122,333,738 520,541,107 288,299,448
Reinvestment of Distributions 415,572 393,156 205,670 277,875 5,760,531 75,367,321
------------------------ ----------------------- -----------------------
254,760,762 291,709,517 105,110,394 122,611,613 526,301,638 363,666,769
Amounts Paid for Repurchases
of Shares (277,595,492)(265,413,991)(119,427,501)(129,516,383)(438,005,806)(394,418,341)
------------------------ ----------------------- -----------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (22,834,730) 26,295,526 (14,317,107) (6,904,770) 88,295,832(30,751,572)
------------------------ ----------------------- -----------------------
Total Increase (Decrease) in
Net Assets (25,483,139) 23,494,942 (6,520,165) (11,313,217) 143,877,818(117,960,290)
NET ASSETS
Beginning of Period 73,766,741 50,271,799 29,276,116 40,589,333 266,170,498 384,130,788
------------------------ ----------------------- -----------------------
End of Period $48,283,602 $73,766,741 $22,755,951 $29,276,116 $410,048,316$266,170,498
======================== ======================= =======================
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets
at End of Period $4,565 $(811) $9,960 $17,797 $5,816 $16,988
FUND SHARE TRANSACTIONS
Shares Sold 25,336,363 27,470,029 14,163,882 17,128,819 29,961,166 17,617,230
Shares Issued from Reinvestment
of Distributions 41,187 36,639 25,328 42,330 317,403 4,749,037
------------------------ ----------------------- -----------------------
25,377,550 27,506,668 14,189,210 17,171,149 30,278,569 22,366,267
Shares Repurchased (27,437,686) (25,019,680) (15,890,903) (18,633,805) (26,025,023)(23,922,813)
------------------------ ----------------------- -----------------------
Net Increase (Decrease) in
Fund Shares (2,060,136) 2,486,988 (1,701,693) (1,462,656) 4,253,546 (1,556,546)
======================== ======================= =======================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
Year Ended October 31
<TABLE>
<CAPTION>
Gold Health Sciences Leisure
Portfolio Portfolio Portfolio
------------------------ ----------------------- -----------------------
1995 1994 1995 1994 1995 1994
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) $273,946 $(967,693) $(451,769) $(2,836,859) $860,862 $(508)
Net Realized Gain (Loss)
on Investment Securities
and Foreign Currency
Transactions (9,619,639) 8,517,563 85,687,476 40,050,629 33,968,704 10,797,683
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (12,084,161) (41,068,325) 135,563,223 (12,078,412) (8,985,890)(24,811,080)
------------------------ ----------------------- -----------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS (21,429,854) (33,518,455) 220,798,930 25,135,358 25,843,676(14,013,905)
------------------------ ----------------------- -----------------------
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income (262,208) 0 0 0 (860,862) 0
In Excess of Net
Investment Income 0 0 0 0 (63,967) 0
Net Realized Gain on
Investment Securities 0 0 0 0 (10,878,825)(22,867,585)
------------------------ ----------------------- -----------------------
TOTAL DISTRIBUTIONS (262,208) 0 0 0 (11,803,654)(22,867,585)
------------------------ ----------------------- -----------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 391,054,681 752,888,737 857,581,666 398,311,261 174,159,525 362,667,687
Reinvestment of Distributions 253,356 0 0 0 11,479,280 21,872,265
------------------------ ----------------------- -----------------------
391,308,037 752,888,737 857,581,666 398,311,261 185,638,805 384,539,952
Amounts Paid for Repurchases
of Shares (489,000,464)(741,146,972)(691,380,383)(509,815,509)(217,147,233)(416,694,388)
------------------------ ----------------------- -----------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (97,692,427) 11,741,765 166,201,283(111,504,248) (31,508,428)(32,154,436)
------------------------ ----------------------- -----------------------
Total Increase (Decrease) in
Net Assets (119,384,489) (21,776,690) 387,000,213 (86,368,890) (17,468,406)(69,035,926)
NET ASSETS
Beginning of Period 271,163,485 292,940,175 473,925,595 560,294,485 282,648,970 351,684,896
------------------------ ----------------------- -----------------------
End of Period $151,778,996 $271,163,485 $860,925,808 $473,925,595 $265,180,564$282,648,970
======================== ======================= =======================
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets
at End of Period $7,616 $(4,122) $(11,852) $(5,926) $2,648 $(3,385)
FUND SHARE TRANSACTIONS
Shares Sold 78,351,361 118,484,854 20,481,654 11,570,403 7,569,986 15,776,685
Shares Issued from Reinvestment
of Distributions 48,628 0 0 0 536,677 939,531
------------------------ ----------------------- -----------------------
78,399,989 118,484,854 20,481,654 11,570,403 8,106,663 16,716,216
Shares Repurchased (97,024,464)(117,776,474) (16,931,693) (14,792,894) (9,443,709)(18,034,630)
------------------------ ----------------------- -----------------------
Net Increase (Decrease) in
Fund Shares (18,624,475) 708,380 3,549,961 (3,222,491) (1,337,046) (1,318,414)
======================== ======================= =======================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
Year Ended October 31
<TABLE>
<CAPTION>
Technology Utilities
Portfolio Portfolio
---------------------------- ------------------------
1995 1994 1995 1994
OPERATIONS
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $(285,996) $(1,425,727) $5,678,806 $4,964,152
Net Realized Gain (Loss)
on Investment Securities and
Foreign Currency Transactions 96,331,634 9,585,419 (971,514) (2,672,261)
Change in Net Appreciation
(Depreciation) of Investment Securities
and Foreign Currency Transactions 64,454,697 4,159,966 11,041,948 (14,112,560)
---------------------------- ------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 160,500,335 12,319,658 15,749,240 (11,820,669)
---------------------------- ------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 0 (5,546,736) (3,719,456)
Net Realized Gain on
Investment Securities (10,002,886) (30,381,665) 0 (27,955,094)
---------------------------- ------------------------
TOTAL DISTRIBUTIONS (10,002,886) (30,381,665) (5,546,736) (31,674,550)
---------------------------- ------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 952,121,237 584,715,318 165,131,684 231,835,489
Reinvestment of Distributions 9,719,957 28,028,553 5,277,145 29,397,199
---------------------------- ------------------------
961,841,194 612,743,871 170,408,829 261,232,688
Amounts Paid for Repurchases of Shares (876,489,871)(516,224,883)(185,722,491)(259,896,844)
---------------------------- ------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS 85,351,323 96,518,988 (15,313,662) 1,335,844
---------------------------- ------------------------
Total Increase (Decrease)
in Net Assets 235,848,772 78,456,981 (5,111,158) (42,159,375)
NET ASSETS
Beginning of Period 327,259,996 248,803,015 139,578,659 181,738,034
---------------------------- ------------------------
End of Period $563,108,768 $327,259,996 $134,467,501 $139,578,659
============================ ========================
Accumulated Undistributed Net
Investment Income (Loss) Included
in Net Assets at End of Period $(6,696) $(3,348) $130,418 $(1,652)
FUND SHARE TRANSACTIONS
Shares Sold 33,572,713 24,698,829 16,608,991 22,282,598
Shares Issued from Reinvestment
of Distributions 404,324 1,188,154 530,647 2,768,121
---------------------------- ------------------------
33,977,037 25,886,983 17,139,638 25,050,719
Shares Repurchased (30,697,802) (21,983,488) (18,770,917) (24,951,611)
---------------------------- ------------------------
Net Increase (Decrease) in Fund Shares 3,279,235 3,903,495 (1,631,279) 99,108
============================ ========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Strategic
Portfolios, Inc. (the "Fund"), a Maryland Corporation, consists of eight
separate portfolios: Energy Portfolio, Environmental Services Portfolio,
Financial Services Portfolio, Gold Portfolio, Health Sciences Portfolio, Leisure
Portfolio, Technology Portfolio and Utilities Portfolio. The Fund is registered
under the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
A. SECURITY VALUATION - Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sale price in
the market where such securities are primarily traded. If last sale 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. WHEN-ISSUED SECURITIES - When-issued securities held by the Fund are
fully collateralized by other securities. Such collateral is in the possession
of the Fund's custodian. The collateral is evaluated daily to ensure its market
value equals or exceeds the current market value of the when-issued securities.
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.
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 and original issue discount, is
recorded on the accrual basis. Discounts on debt securities purchased are
amortized over
<PAGE>
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
specific industries or 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. The
Portfolios combine fluctuations from currency exchange rates and fluctuations in
market value when computing net realized and unrealized gain or loss from
investments.
The Environmental Services Portfolio may have elements of risk due to a
concentration of investments in the environmental services industry. Investments
in environmental services companies may be affected by regulations imposed by
various federal and state authorities, including the Environmental Protection
Agency and its affiliates. In addition, some of these companies may have certain
liability risks as a result of the products or services they provide.
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.
E. FEDERAL AND STATE TAXES - The Fund has complied and continues to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
distributions of net investment income and net realized capital gains, if any,
to relieve it from all federal and state income taxes and federal excise taxes.
At October 31, 1995, net capital loss carryovers and their expiration dates were
as follows:
Expires October 31
Portfolio 2000 2002 2003
- --------------------------------------------------------------------------------
Energy Portfolio $1,121,598 $2,986,299 $346,524
Environmental Services Portfolio 0 2,731,233 0
Gold Portfolio 4,766,360 0 10,650,763
Utilities Portfolio 0 2,578,763 1,225,094
Net capital loss carryovers utilized in 1995 by the Environmental Services,
Financial Services and Health Sciences Portfolios amounted to $9,682,944,
$4,226,773 and $12,666,165, respectively.
To the extent future capital gains are offset by capital loss carryovers
such gains will not be distributed to shareholders.
Dividends paid by the Fund from net investment income and distributions of
net realized short-term capital gains are, for federal income tax purposes,
taxable as ordinary income to shareholders. Of the ordinary income distributions
declared for the year ended October 31, 1995, amounts qualifying for the
dividends received deduction available to the Fund's corporate shareholders were
as follows:
<PAGE>
Qualifying
Portfolio Percentage
- --------------------------------------------------------------------------------
Energy Portfolio 100.00%
Environmental Services Portfolio 92.87%
Financial Services Portfolio 99.87%
Gold Portfolio 100.00%
Health Sciences Portfolio 0.00%
Leisure Portfolio 13.43%
Technology Portfolio 0.00%
Utilities Portfolio 82.23%
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and
distributions to shareholders are recorded by the Fund on the ex
dividend/distribution date. The Fund distributes net realized capital gains, if
any, to its shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments for foreign currency transactions, nontaxable dividends, net
operating losses and expiring capital loss carryforwards.
For the year ended October 31, 1995, the effects of such differences were
as follows:
Accumulated
Accumulated Undistributed
Undistributed Net Realized
Net Gain on
Investment Investment
Portfolio Income Securities
- --------------------------------------------------------------------------------
Health Sciences Portfolio $ 445,843 $(445,843)
Leisure Portfolio 70,000 (70,000)
Technology Portfolio 282,648 (282,648)
Net investment income, net assets and paid-in capital were not affected.
G. EXPENSES - Each of the Portfolios bears expenses incurred specifically
on its behalf and, in addition, each Portfolio bears a portion of general
expenses, based on the relative net assets of each Portfolio.
Under an agreement between each Portfolio 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 Paid
Indirectly in the Statement of Operations. Similarly, Transfer Agent Fees are
reduced by credits earned by each Portfolio from security brokerage transactions
under certain broker/services arrangements with third parties. Such credits are
shown as Fees Paid Indirectly in the accompanying Statement of Operations.
For the year ended October 31, 1995, Fees Paid Indirectly consisted of the
following:
<PAGE>
Custodian Fees Transfer
Portfolio and Expenses Agent Fees
- --------------------------------------------------------------------------------
Energy Portfolio $0 $32,067
Environmental Services Portfolio 8,330 12,816
Financial Services Portfolio 35,474 102,803
Gold Portfolio 24,450 117,755
Health Sciences Portfolio 69,230 161,276
Leisure Portfolio 56,785 118,553
Technology Portfolio 65,004 180,403
Utilities Portfolio 25,999 71,689
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 for each Portfolio is
based on the annual rate of 0.75% on the first $350 million of average net
assets; reduced to 0.65% on the next $350 million of average net assets; and
0.55% on average net assets in excess of $700 million.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of each
Portfolio are made by ITC. Fees for such sub-advisory services are paid by IFG.
In accordance with an Administrative Agreement, each Portfolio 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.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by the Environmental Services and Utilities Portfolios.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For th e year ended
October 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 as follows:
Portfolio Purchases Sales
- --------------------------------------------------------------------------------
Energy Portfolio $163,855,597 $192,612,694
Environmental Services Portfolio 44,418,050 56,461,946
Financial Services Portfolio 561,945,334 422,636,725
Gold Portfolio 146,109,806 242,758,723
Health Sciences Portfolio 604,013,274 579,342,072
Leisure Portfolio 281,400,509 328,062,142
Technology Portfolio 821,026,659 753,889,582
Utilities Portfolio 201,777,280 215,788,706
For the year ended October 31, 1995, the aggregate cost of purchases and
proceeds from sales of U.S. Government securities for the Utilities Portfolio
were $13,446,719 and $13,690,391, respectively. There were no purchases or sales
of U.S. Government securities in any other Portfolios.
<PAGE>
NOTE 4 - APPRECIATION AND DEPRECIATION. At October 31, 1995, 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 (depreciation) by Portfolio were
as follows:
Net
Gross Gross Appreciation
Portfolio Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
Energy Portfolio $990,994 $1,698,939 $(707,945)
Environmental Services Portfolio 1,441,937 950,618 91,319
Financial Services Portfolio 33,409,896 3,946,363 29,463,533
Gold Portfolio 24,267,908 40,439,322 (16,171,414)
Health Sciences Portfolio 186,759,710 17,759,679 169,000,031
Leisure Portfolio 28,716,220 18,329,040 10,387,180
Technology Portfolio 112,010,286 10,876,360 101,133,926
Utilities Portfolio 6,603,500 1,852,395 4,751,105
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 year ended October 31, 1995, included in
Directors' Fees and Expenses in the Statement of Operations, and unfunded
accrued pension costs and pension liability included in prepaid expenses and
accrued expenses, respectively, in the Statement of Assets and Liabilities were
as follows:
Unfunded
Pension Accrued Pension
Portfolio Expenses Pension Costs Liability
- --------------------------------------------------------------------------------
Energy Portfolio $811 $2,386 $4,008
Environmental Services Portfolio 372 1,095 1,839
Financial Services Portfolio 3,275 9,634 16,184
Gold Portfolio 4,122 12,126 20,370
Health Sciences Portfolio 5,926 17,432 29,284
Leisure Portfolio 3,385 9,959 16,729
Technology Portfolio 3,348 9,847 16,543
Utilities Portfolio 1,652 4,860 8,164
An affiliated company represents ownership by the Portfolio 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 year ended October 31, 1995, in which
the issuer was an affiliate of the Portfolio, is as follows:
<PAGE>
<TABLE>
<CAPTION>
Purchases Sales Realized
--------------------- --------------------- Gain/(Loss) Value
Affiliate Shares Cost Shares Cost on Investments at 10/31/95
- --------------------------------------------------------------------------------------------------------------
Financial Services Portfolio
<S> <C> <C> <C> <C> <C> <C>
Regency Realty* - - - - - $5,525,000
Gold Portfolio
Aber Resources - - 300,000 $1,828,080 $(253,470) 7,950,000
Carson Gold - - 285,400 904,330 (622,256) 402,538
Crown Resources - - - - - 3,960,000
Francisco Gold - - - - - 1,085,489
Golden Star Resources 350,500 $2,274,829 - - - 8,289,938
Guyana Gold 600,000 1,326,060 - - - 379,177
International Capri
Resources 400,000 807,662 - - - 475,830
Loki Gold - - - - - 2,254,990
MK Gold - - - - - 4,387,500
Orvana Minerals - - 100,000 217,490 156,450 4,059,432
Queenstake Resources - - 700,000 1,802,762 (1,479,518) 350,925
San Fernando Mining - - - - - 267,655
Trillion Resources - - - - - 1,488,785
Viceroy Resources - - 876,000 6,352,479 (2,266,235) 1,790,444
Yamana Resources 700,000 1,477,541 - - - 1,353,143
Health Sciences Portfolio
ALPHARMA Inc
Class A* - - - - - 24,000,000
Assisted Living
Concepts 250,000 2,312,500 - - - 3,593,750
Health Sciences Portfolio (Continued)
Cambridge Heart
Series A Conv Pfd - - - - - $1,800,000
CIMA Labs - - - - - 3,324,995
Clarus Medical Systems
Series I Pfd - - - - - 399,990
Series II Pfd 111,196 $111,196 - - - 83,397
Warrants 11,119 - - - - 0
Crown Laboratories - - - - - 1,170,555
Diametrics Medical - - 140,000 $840,000 $482,496 3,379,071
Ecogen Technologies 20 228,000 - - - 1,320,000
Electroscope Inc - - - - - 787,500
Electroscope Inc
Warrants - - - - - 0
Emisphere Technologies - - - - - 3,937,500
<PAGE>
ImClone Systems - - 200,000 2,351,875 (2,230,676) 2,315,625
Ingenex Inc
Series B Pfd - - - - - 600,000
Landec Corp
Series D Conv Pfd - - - - - 1,500,001
Matrix Pharmaceutical 561,200 7,456,956 - - - 8,137,400
Medical Associates
of America - - - - - 1
Multum Information
Services Series C Pfd - - - - - 1,468,573
Pharmos Corp - - - - - 1,300,047
ResMed 445,000 6,420,000 - - - 6,675,000
Salick Health Care - - 490,000 3,515,913 5,732,837 8,911,875
Scigenics Inc - - 145,000 2,187,169 (280,669) 0
Sparta Pharmaceuticals - - - - - 1,125,000
Titan Pharmaceuticals
Series A Pfd - - - - - -2,306,543
Unisyn Technologies - - - - - 31,132
Unisyn Technologies
Series A Conv Pfd 359,501 359,501 - - - 359,501
Xenometrix 266,667 400,001 - - - 873,852
Leisure Portfolio
Pulitzer Publishing* - - 232,500 5,694,501 2,946,568 0
<FN>
* Dividend income in the amount of $513,500, $45,000 and $49,613 was received
from Regency Realty, ALPHARMA Inc Class A and Pulitzer Publishing, respectively,
during the fiscal year ended October 31, 1995. No dividend income was received
from any other affiliated companies.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Year Ended October 31
------------------------------------------------------------------
1995 1994 1993 1992 1991
Energy Portfolio
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $10.77 $11.53 $9.14 $1.28 $ 12.06
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.09 0.06 0.13 0.05 0.09
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.68) (0.76) 2.36 (2.17) (0.76)
------------------------------------------------------------------
Total from Investment Operations (0.59) (0.70) 2.49 (2.12) (0.67)
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.09 0.06 0.10 0.02 0.11
------------------------------------------------------------------
Net Asset Value - End of Period $10.09 $10.77 $11.53 $9.14 $11.28
==================================================================
TOTAL RETURN (5.45%) (6.04%) 27.18% (18.74%) (5.55%)
RATIOS
Net Assets - End of Period ($000 Omitted) $48,284 $73,767 $50,272 $17,048 $12,130
Ratio of Expenses to Average Net Assets 1.53%@ 1.35% 1.18% 1.73% 1.69%
Ratio of Net Investment Income to Average
Net Assets 0.72% 0.65% 0.86% 0.32% 0.83%
Portfolio Turnover Rate 300% 123% 190% 370% 337%
Financial Services Portfolio
PER SHARE DATA
Net Asset Value - Beginning of Period $15.31 $20.28 $15.28 $14.67 $7.19
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.29 0.29 0.24 0.20 0.10
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.64 (0.66) 5.00 1.52 7.56
------------------------------------------------------------------
Total from Investment Operations 3.93 (0.37) 5.24 1.72 7.66
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.29 0.29 0.24 0.20 0.08
Distributions from Capital Gains 0.00 4.31 0.00 0.91 0.10
------------------------------------------------------------------
Total Distributions 0.29 4.60 0.24 1.11 0.18
------------------------------------------------------------------
Net Asset Value - End of Period $18.95 $15.31 $20.28 $15.28 $14.67
==================================================================
TOTAL RETURN 25.80% (2.24%) 34.33% 11.74% 106.63%
RATIOS
Net Assets - End of Period ($000 Omitted) $410,048 $266,170 $384,131 $189,708 $95,144
Ratio of Expenses to Average Net Assets 1.26%@ 1.18% 1.03% 1.07% 1.13%
Ratio of Net Investment Income to Average
Net Assets 2.10% 1.66% 1.16% 1.28% 1.76%
Portfolio Turnover Rate 171% 88% 236% 208% 249%
<FN>
@ Ratio reflects total expenses prior to any expense offset.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Year Ended October 31
------------------------------------------------------------------
1995 1994 1993 1992 1991
Gold Portfolio
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $5.68 $6.23 $3.99 $4.26 $4.29
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.01 (0.02) (0.01) (0.01) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.47) (0.53) 2.25 (0.26) (0.02)
------------------------------------------------------------------
Total from Investment Operations (0.46) (0.55) 2.24 (0.27) (0.03)
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.01 0.00 0.00 0.00 0.00
------------------------------------------------------------------
Net Asset Value - End of Period $5.21 $5.68 $6.23 $3.99 $4.26
==================================================================
TOTAL RETURN (8.12%) (8.83%) 56.27% (6.51%) (0.51%)
RATIOS
Net Assets - End of Period ($000 Omitted) $151,779 $271,163 $292,940 $46,212 $46,383
Ratio of Expenses to Average Net Assets 1.32%@ 1.07% 1.03% 1.41% 1.47%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.13% (0.32%) (0.21%) (0.23%) (0.25%)
Portfolio Turnover Rate 72% 97% 142% 101% 43%
Health Sciences Portfolio
PER SHARE DATA
Net Asset Value - Beginning of Period $35.09 $33.49 $35.65 $40.60 $20.61
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.03) (0.24) (0.13) 0.11 0.14
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 15.41 1.84 (2.02) (4.52) 23.45
------------------------------------------------------------------
Total from Investment Operations 15.38 1.60 (2.15) (4.41) 23.59
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.00 0.01 0.10 0.12
Distributions from Capital Gains+ 0.00 0.00 0.00 0.44 3.48
------------------------------------------------------------------
Total Distributions 0.00 0.00 0.01 0.54 3.60
------------------------------------------------------------------
Net Asset Value - End of Period $50.47 $35.09 $33.49 $35.65 $40.60
==================================================================
TOTAL RETURN 43.83% 4.78% (6.01%) (10.86%) 114.54%
RATIOS
Net Assets - End of Period ($000 Omitted) $860,926 $473,926 $560,294 $756,791 $744,927
Ratio of Expenses ot Average Net Assets 1.15%@ 1.19% 1.16% 1.00% 1.03%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.08%) (0.57%) (0.34%) 0.26% 0.55%
Portfolio Turnover Rate 107% 80% 87% 91% 100%
<FN>
< The per share information for the Gold Portfolio for 1993 was computed based
on weighted average shares.
+ For the year ended October 31, 1993, the Health Sciences Portfolio declared a
Capital Gains distribution which aggregated less than $0.01 on a per share
basis.
@ Ratio reflects total expenses prior to any expense offset.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Year Ended October 31
------------------------------------------------------------------
1995 1994 1993 1992 1991
Leisure Portfolio
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $22.63 $25.47 $16.29 $14.85 $10.14
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.08 (0.01) (0.02) (0.01) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.06 (0.94) 9.20 2.44 6.84
------------------------------------------------------------------
Total from Investment Operations 2.14 (0.95) 9.18 2.43 6.83
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.08 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.91 1.89 0.00 0.99 2.12
------------------------------------------------------------------
Total Distributions 0.99 1.89 0.00 0.99 2.12
------------------------------------------------------------------
Net Asset Value - End of Period $23.78 $22.63 $25.47 $16.29 $14.85
==================================================================
TOTAL RETURN 9.98% (3.92%) 56.36% 16.34% 67.40%
RATIOS
Net Assets - End of Period ($000 Omitted) $265,181 $282,649 $351,685 $40,140 $14,406
Ratio of Expenses to Average Net Assets 1.29%@ 1.17% 1.14% 1.51% 1.86%
Ratio of Net Investment Income ()Loss) to
Average Net Assets 0.31% 0.00% (0.11%) (0.33%) (0.24%)
Portfolio Turnover Rate 119% 116% 116% 148% 122%
Technology Portfolio
PER SHARE DATA
Net Asset Value - Beginning of Period $24.94 $26.99 $20.20 $18.10 $11.61
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.02) (0.02) (0.15) (0.09) (0.09)
Net Gains on Securities
(Both Realized and Unrealized) 10.20 1.19 6.94 2.19 10.97
------------------------------------------------------------------
Total from Investment Operations 10.18 1.17 6.79 2.10 10.88
------------------------------------------------------------------
LESS DISTRIBUTIONS
Distributions from Capital Gains 0.79 3.22 0.00 0.00 4.39
------------------------------------------------------------------
Net Asset Value - End of Period $34.33 $24.94 $26.99 $20.20 $18.10
==================================================================
TOTAL RETURN 42.19% 5.04% 33.63% 11.57% 93.73%
RATIOS
Net Assets - End of Period ($000 Omitted) $563,109 $327,260 $248,803 $165,083 $63,119
Ratio of Expenses to Average Net Asests 1.12%@ 1.17% 1.13% 1.12% 1.19%
5io of Net Investment Loss to Average
Net Assets (0.06%) (0.55%) (0.69%) (0.45%) (0.53%)
Portfolio Turnover Rate 191% 145% 184% 169% 307%
<FN>
< The per share information for the Leisure Portfolio for 1993 and for the
Technology Portfolio for 1992 and 1991 was computed based on weighted average
shares.
+ Distributions in excess of net investment income for the year ended October
31, 1995, aggregated less than $0.01 on a per share basis.
@ Ratio reflects total expenses prior to any expense offset.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Year Ended October 31
------------------------------------------------------------------
1995 1994 1993 1992 1991
Utilities Portfolio
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $9.76 $12.80 $10.10 $9.95 $8.35
------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.44 0.33 0.29 0.27 0.39
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.84 (1.12) 2.71 0.92 1.58
------------------------------------------------------------------
Total from Investment Operations 1.28 (0.79) 3.00 1.19 1.97
------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.43 0.25 0.30 0.26 0.37
Distributions from Capital Gains 0.00 2.00 0.00 0.78 0.00
------------------------------------------------------------------
Total Distributions 0.43 2.25 0.30 1.04 0.37
------------------------------------------------------------------
Net Asset Value - End of Period $10.61 $9.76 $12.80 $10.10 $9.95
==================================================================
TOTAL RETURN 13.48% (7.22%) 29.88% 12.04% 23.98%
RATIOS
Net Assets - End of Period ($000 Omitted) $134,468 $139,579 $181,738 $107,561 $69,267
Ratio of Expenses to Average Net Assets # 1.18%@ 1.13% 1.06% 1.13% 1.21%
Ratio of Net Investment Income to Average
Net Assets # 4.47% 3.33% 2.66% 2.73% 4.19%
Portfolio Turnover Rate 185% 180% 202% 226% 151%
<FN>
# Various expenses of the Portfolio were voluntarily absorbed by IFG for the
years ended October 31, 1995 and 1994. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 1.30% and
1.14%, respectively, and ratio of net investment income to average net assets
would have been 4.34% and 3.32%, respectively.
@ Ratio reflects total expenses, less absorbed expenses by the investment
advisor, prior to any expense offset.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period
Ended
October
Year Ended October 31 31
------------------------------------------------------ ----------
1995 1994 1993 1992 1991^
Environmental Services Portfolio
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $6.50 $6.80 $7.54 $8.97 $8.00
------------------------------------------------------ ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.08 0.06 (0.02) (0.04) (0.07)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.62 (0.30) (0.72) (1.39) 1.04
------------------------------------------------------ ----------
Total from Investment Operations 1.70 (0.24) (0.74) (1.43) 0.97
------------------------------------------------------ ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.08 0.06 0.00 0.00 0.00
------------------------------------------------------ ----------
Net Asset Value - End of Period $8.12 $6.50 $6.80 $7.54 $8.97
====================================================== ==========
TOTAL RETURN 26.09% (3.51%) (9.85%) (15.90%) 12.11%*
RATIOS
Net Assets - End of Period ($000 Omitted) $22,756 $29,276 $40,589 $17,685 $8,001
Ratio of Expenses to Average Net Assets# 1.57%@ 1.29% 1.62% 1.85% 2.50%~
Ratio of Net Investment Income (Loss) to
Average Net Assets# 0.65% 0.61% (0.40%) (1.23%) (1.81%)~
Portfolio Turnover Rate 195% 211% 155% 113% 69%*
<FN>
^ From January 2, 1991, commencement of operations, to October 31, 1991.
< The per share information for the Environmental Services Portfolio for 1994
and 1993 was computed based on weighted average shares.
* These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
# Various expenses of the Portfolio were voluntarily absorbed by IFG for the
years ended October 31, 1995 and 1994. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 1.93% and
1.43%, respectively, and ratio of net investment income to average net assets
would have been 0.29% and 0.47%, respectively.
@ Ratio reflects total expenses, less absorbed expenses by the investment
advisor, prior to any expense offset.
~ Annualized
</FN>
</TABLE>
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Strategic Portfolios, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the portfolios constituting
the INVESCO Strategic Portfolios, Inc. (the "Fund") at October 31, 1995, the
results of each of their operations for the year ended, the changes in each of
their net assets for each of the two years in the period then ended and the
financial highlights for each of the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1995 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
December 4, 1995
<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, pleas 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.
