SEMIANNUAL REPORT
April 30, 1995
INVESCO
STRATEGIC
PORTFOLIOS
No-Load Portfolios
Investing in Targeted
Industry Sectors
INVESCO FUNDS
<PAGE>
Market Overview May 1995
March 1995 marked an important milestone -- the fourth anniversary of the
current U.S. economic expansion. Over the 12 calendar quarters ended 12/31/94,
Gross Domestic Product grew at an average rate of 3.6% (annualized real GDP
tracked quarterly, adjusted for inflation). Growth accelerated in the latter
half of 1993, and for all of 1994, the GDP advanced 4.1% -- hardly rampant, but
surprisingly vigorous for a developed market like the U.S.
As a result, the Federal Reserve Board became increasingly concerned over
the potential of reigniting inflation. Between February 1994 and February 1995,
the Fed doubled short-term interest rates, which now stand at 6%. This
represents their attempt to strike a delicate balance-slowing economic growth
down to a more sustainable 2.5%annual rate, while not triggering a recession.
The plan may be working. Estimated GDP for first quarter 1995 was a
moderate 2.7% -- a definite easing from the 5.1%recorded for the last three
months of 1994. If this level is sustained, it represents the "soft landing" the
Fed has been working toward.
Since 1945, expansions have lasted an average of four and a half years.
Furthermore, according to an old rule of thumb, economists start watching for a
recession (two or more consecutive quarterly declines in the GDP) within 18 to
30 months of initial interest rate increases. By these two measures, the U.S.
economy is due to call it a night no later than mid-1996.
Looking at the previous economic cycle, however, we find a recovery
beginning in November 1982, followed by a broad but mild slow-down in the
mid-80s. The next recession began only in July 1990, and lasted a scant nine
months. So a deep recession does not inevitably follow every expansion.
Obviously, it's tricky to generalize about anything as complex as economic
cycles. Still, we are clearly in the later stages of the current expansion. That
fact means different things for different market segments. And there will be
variation within each industry segment, as well.
Last year's outstanding growth in corporate earnings is not likely to be
repeated. While first quarter 1995 earnings gains were impressively robust, over
the longer haul,consumer staples and basic materials, in particular, could see a
weakening in product pricing power -- a weakness that will lead to earnings
deceleration. U.S. manufacturers, on the other hand, have the potential for
continued earnings expansion; this is particularly true for firms with
significant export business, as recoveries now underway in Europe gain strength.
Volatility remains the key word. Stock performance was rotational in 1994,
and will probably remain that way -- sector swiftly replacing sector as leader
or laggard of the month.
INVESCO Strategic Portfolios
The line graphs below illustrate the value of a $10,000 investment in
each of the INVESCO Strategic Portfolios, plus reinvested dividends and capital
gain distributions, for the 10-year period ended 4/30/95; or, in the case of
Environmental Services, Financial Services, and Utilities, from inception
through 4/30/95. (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 indices do not have expenses, which would, of
course, have lowered their performance.
Energy Portfolio
For the six months ended 4/30/95, INVESCO Strategic Energy Portfolio had a
total return of negative 5.01%, compared to a positive 10.42% for the S&P 500.
On a 1995 year-to-date basis, however, the fund's performance improved markedly.
For the four months ended 4/30/95, Strategic Energy Portfolio achieved a
positive total return of 6.90%, compared to 13.00% for the S&P 500. (Of course,
past performance is not a guarantee of future results.)*
The recent improvement in the fund's performance is partly due to the
strong recovery in oil prices in 1995. Several geopolitical events have
<PAGE>
contributed to the recent strengthening in oil prices -- such as President
Clinton's efforts to embargo Iranian oil shipments, Iraq's refusal to begin
limited exports under the conditions stipulated by the United Nations, and the
Brazilian oil workers' strike. Continuing tension in other oil exporting
countries, including Algeria and Nigeria, has also contributed to the price
rise. Thus far in the second quarter of 1995, oil prices have increased 38% from
their first quarter average of $17.18 per barrel.
Energy Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year -2.27%
5 years -1.83%
10 years 4.48%
The energy sector has underperformed the S&P 500 since late-1993. A number
of energy stocks lost over one-third of their value due to falling oil and gas
prices. Many investors now believe the energy sector is due for better
performance in 1995. The classic commodity price cycle appears to be
re-asserting itself: Lower prices cause higher demand while concurrently
reducing supply; prices eventually recover. The strong demand witnessed thus far
in 1995 confirms this relationship -- and is especially impressive in light of
the unusually warm winter weather experienced in North America, which moderated
demand for both heating oil and natural gas. Deliverability of oil and gas in
the U.S.is expected to decline due to lower drilling activity, which was caused
by cash flow constraints among many oil and gas producing companies.
The fund has been repositioned to take advantage of the bottoming of the
current commodity cycle. Oil service and exploration & production companies such
as Schlumberger Ltd, Halliburton Co, and Andarko Petroleum have been added to
the portfolio. Due to a strong inflow of cash into the fund, we were also able
to increase positions in many international and domestic oil company holdings,
as well as to add several new names, such as British Petroleum PLCADR, Phillips
and Occidental Petroleum. The maintenance of positions in major and domestic oil
companies appears especially prudent at this time; their refining, marketing,
and chemical operations are enjoying accelerating earnings growth due to the
strong worldwide economy.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 4/30/95.
INVESCO's Strategic Energy Portfolio is now managed by Thomas R.
Samuelson, who joined INVESCO this spring. Mr.Samuelson began his career in the
energy industry as Assistant to the Financial Vice President at Helmerich &
Payne in 1984. 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, where he managed a hedge fund of energy securities.
Mr.Samuelson is a Chartered Financial Analyst and received his BS in Petroleum
Engineering and his MBA from the University of Tulsa. Former manager Dan Leonard
continues to manage Technology and Gold Portfolios.
Environmental Services
Portfolio For the six months ended 4/30/95, Environmental Services
Portfolio achieved a total return of 12.77%, compared to 10.42% for the S&P 500.
For the 12 months ended 4/30/95, Lipper Analytical Services ranked it #1 of five
environmental funds.** (Of course, past performance is not a guarantee of future
results.)*
<PAGE>
Until recently, this sector had languished for a long period. The reasons
are many: the 1990-1991 recession; delays or rollbacks in implementing
regulatory measures on both state and federal levels; and lack of sufficiently
broad investment in pollution control equipment and services by corporations,
partly due to cost concerns.
As investors know, over the last six months this sector has finally gotten
a lift from the improved U.S. economy. Volumes have risen for municipal solid
waste generation, among other industries. Additionally, the improved strength of
commodity prices has benefited waste collection companies involved in recycling.
Many companies in these industries cut or maintained capacity over recent years,
a factor which is now aiding earnings growth. Finally, a high level of industry
consolidation, particularly in the solid waste segment, has helped improve
fundamentals.
We have selectively added new holdings to the portfolio in these areas,
concentrating on companies with better-than-average earnings growth potential
due to strong revenue and profitability trends. New positions since last October
include three pollution control service firms, Chambers Development, Sanifill
Inc, and Rollins Environmental Services, as well as Continental Waste Industries
(pollution control-equipment/systems). We increased our stake in TETRA
Technologies, and added a new position in IMCO Recycling.
Environmental Services Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 7.65%
Since inception (1/91) -1.79%
Our current cash position is relatively high. This reflects the fund's
strong asset growth as sector performance has improved. We are looking
selectively at additional opportunities and anticipate becoming more fully
invested as the year goes on.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 (1/91)
through 4/30/95.
Environmental Services Portfolio is now managed by Jeffrey G. Morris, who
joined INVESCO in 1991 as a research analyst. He earned his BSBA from Colorado
State University and is a Chartered Financial Analyst. Former manager John
Schroer continues to co-manage Health Sciences Portfolio; in addition, Mr.
Schroer is now manager for INVESCO Emerging Growth Fund.
Financial Services Portfolio
In May, independent mutual fund analyst Morningstar awarded Financial
Services Portfolio its highest rating, Five Stars, out of 3,043 equity funds,
for the five-year period ended April 30, 1995, and Four Stars for the three-year
period.** For the six months ended 4/30/95, the fund had a total return of
4.44%, compared to 10.42% for the S&P 500. (Of course, past performance is not a
guarantee of future results.)*
The fund underperformed its market sector during the period due to a
defensive position; we have been maintaining a low exposure to insurance stocks
and a high cash position. This strategy reflected our wariness about possible
problems for this industry segment -- specifically, the potential for another
series of short-term interest rate increases.
<PAGE>
Financial Services Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 6.98%
5 years 21.63%
Since inception (6/86) 14.31%
Also because of interest rate uncertainty, we have underweighted
housing-related and government-insured agencies such as the Federal Home Loan
Mortgage Association. For these areas, higher short-term rates would have caused
earnings disappointments and consequent price volatility. The housing market, in
particular, has been under pressure recently from the early signs of economic
slowdown.
Over the past few months, interest rates have stabilized. Some market
pundits are even forecasting the possibility for rate reductions by the Federal
Reserve, and as a result financial stocks have moved even higher. However, while
rate increases likely are in abeyance -- given the demonstrable slowing of the
broader economy -- we are less convinced that rates will be cut. Therefore, we
are maintaining a defensive position (particularly in regards to the housing
sector).
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 (5/86)
through 4/30/95.
In the past six months, we sold Bankers Life Holding, EXEL Ltd, and
Provident Life & Accident Insurance of America. The fund has six new insurance
holdings, including SAFECO Corp, St Paul Cos, and Torchmark Corp., additions
that are intended to bring the fund's holdings more in line with the weightings
of the financial indexes.
For similar reasons, we boosted our stake in finance companies, purchasing
Beneficial Corp, First USA, and Transamerica Corp.
In our opinion, U.S. banks continue to enjoy better prospects for earnings
growth compared to internationals, which could be coming under the gun of higher
interest rates abroad. We therefore eliminated foreign banks. We have selected
money center and regional banks such as Banc One, Bank of New York, BayBanks
Inc, Mellon Bank, and Shawmut National.
To boost yields and to add price stability to the portfolio, we have
increased our focus on REITs (Real Estate Investment Trusts). The fund currently
owns several,including Beacon Properties, CenterPoint Properties, Irvine
Apartment Communities, and South West Property Trust.
Finally, you will notice our net cash position remains relatively high.
This posture reflects our belief that numerous buying opportunities may present
themselves in the second half of 1995 if our fears about interest rate increases
are realized.
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.
Gold Portfolio
Over the six months ended 4/30/95, Gold Portfolio had a total return of
negative 9.15%, compared to a positive 10.42% for the S&P 500. However, over the
three months ended the same date, Gold Portfolio achieved a positive total
return of 22.27%, compared to 10.06% for the S&P 500. (Of course, past
performance is not a guarantee of future results.)*
Gold Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year -14.85%
5 years 0.34%
10 years 1.21%
<PAGE>
There are two keys to this extreme volatility: the fall of the U.S. dollar
against other major currencies, and the rise of U.S. interest rates, which many
fear signal higher inflation and a possible recession. As a result of these
negative influences, investors often turn toward hard assets, such as precious
metals and real estate.
But gold is not just an investment. It has applications in industry and
fashion, and demand has increased worldwide for both these uses. Meanwhile,
supply has not risen with increased needs.
These factors have all combined to push up the price of gold bullion, as
well as mining stocks. Gold is hovering at around $390 per troy ounce, and a set
of barouche economic figures or sudden surge in demand could push the price
above $400. Volatility working the way it does, of course, prices may drop just
as precipitately, and investors should be prepared for continued wide price
fluctuations.
Over the past six months, we have made very few changes to portfolio
holdings. We continue to favor companies in North America which are increasing
their reserves, which could lead to improved valuations later. We added two
convertible preferred issues: Battle Mountain Gold and Freeport McMoRanCopper &
Gold.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 4/30/95.
Certain of the fund's holdings do have activities and interests in South
America. Some of these were negatively affected by devaluation of the Mexican
peso last December, with a subsequent influence on fund performance.
Overall,however, INVESCO Gold Portfolio has weathered the recent volatility far
better than its competition, in part by avoiding perennial problem areas such as
South Africa.
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
For the six months ended 4/30/95, Health Sciences Portfolio achieved a
total return of 13.85%, compared to 10.42% for the S&P 500. Your fund's
competitive performance has improved significantly: For the one-year period
ended 4/30/95, Lipper Analytical Services ranked it #6 of 16
health/biotechnology funds; for five years, #5 of eight; and for 10 years, #1 of
four. (Of course, past performance is not a guarantee of future results.)*
Heatlh Sciences Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 19.93%
5 years 16.57%
10 years 20.22%
Demographic trends around the world continue to be favorable for this
sector. Life expectancy has increased while birth rates have moderated. In the
U.S., over 15% of the population will be over age 65 by 2020. Higher expenditure
per person -- partly a result of the elderly requiring greater and more
expensive health care than average -- is also a positive factor.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 4/30/95.
Our primary focus continues to be companies with above-average earnings
growth potential. We are seeking to identify firms driven by strong revenue and
margin trends, relatively consistent operating results, and proven management.
One of our major tactics within this strategy continues to be
cost-containment. One aspect of the cost-containment theme is consolidation.
Economies of scale from well-executed mergers and acquisitions can be a powerful
aid to slowing the growth rate of expenses.
Manufacturers and suppliers of tangible goods have greatly sparked our
interest. Fundamentals have improved; companies have made serious progress in
relieving pricing pressures and inventory issues. Above all, new product
introduction here can lead to the accelerating earnings rates we are seeking.
After being underweighted for most of the past three years, these areas now
represent over 30% of the fund's holdings.
New holdings include UroMed Corp (biotechnology). Boston Scientific
produces medical products, and our other new positions are also in medical
products firms, such as Baxter International, Becton Dickinson & Co,
Sofamor/DanekGroup, Biomet Inc, Guidant Corp, Allergan Inc, and Ventritex Inc.
Recently, we have focused more attention on drug companies. The
pharmaceutical industry has also benefited from market rotation, as investors
increasingly favor consumer staples. Our weighting had been cut back due to
stronger earnings acceleration elsewhere, but we will be considering additional
holdings here, given the slower-growth economic picture.
We have largely shifted our focus from HMOs to a more diversified group of
health care industries. Nursing homes remain an area with strong potential, in
our view, so we are maintaining positions in three of these facilities.
Health Sciences Portfolio is managed by INVESCO Senior Vice President
Barry Kurokawa. He holds an MBA from Loyola Marymount University and a BA from
California State University. He began his investment career in 1984. The fund's
co-manager is John Schroer, a Chartered Financial Analyst. He started his
investment career in 1989, after earning an MBA and BA from the University of
Wisconsin.
Leisure Portfolio
In May, independent mutual fund analyst Morningstar awarded Leisure
Portfolio its highest rating, Five Stars, among 3,043 equity funds for the five-
and 10-year periods ended 4/30/95, and four stars for the three-year period.**
For the six months ended 4/30/95, the fund had a total return of 3.24%, compared
to 10.42% for the S&P 500. (Of course, past performance is not a guarantee of
future results.)*
Leisure Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 7.22%
5 years 19.26%
10 years 18.77%
The U.S. economy, although reined in by 1994's higher interest rates, has
shown more endurance than expected. Greater-than-anticipated advertising
strength has benefited various media stocks; our lessened exposure to
broadcasting and publishing contributed to the fund's underperformance relative
to the broad market during the last six months. Recently, we have modestly
increased weighting in the media. New holdings include Turner Broadcasting
System, Cinar Films, Jones Intercable, Katz Media Group, and several others.
At the same time, however, we have reduced the fund's foreign exposure,
closing positions in issues such as Central European Media Enterprises Ltd and
Grupo Televisa SA de CV Sponsored ADR. Currently, the fund's international
holdings are limited to Europe and Asia, in order to avoid any lingering effects
of the winter devaluation of the Mexican peso.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 4/30/95.
As the U.S. economy begins to slow, we have shifted strategy by lessening
exposure to cyclical stocks. Although consumer confidence has remained strong
till now, recent higher unemployment figures may easily cut into that buying
strength. Consequently, over the past six months, we have greatly reduced our
retail focus, an area experiencing general weakness. Positions were closed in
CUC International, Michael's Stores, Nordstrom Inc, Office Depot, Starbucks
Corp, Rock Bottom Restaurants, and Damark International.
Several other market segments are getting increased attention in the
fund's holdings. The lodging industry was among the market leaders in April, for
instance; with the new holding in John Q Hammons Hotels, we now own four --
although we have begun taking profits from our investments in La Quinta Inns,
whose stock has risen dramatically from our average purchase price.
Gaming, entertainment software, and selected retailers also deserve a
closer look. And, in general, the growing potential for broad deregulation could
benefit the communications industries, so we are also interested in cable, movie
studios, and other multimedia plays.
We have chosen to take profits and cut back our focus in many
computer-related industries. The technology area in general tends to lag the
market over the spring and summer, rebounding in the autumn. We closed positions
in Compaq Computer, Corel Corp, Macromedia Inc, Microsoft Corp, and Wavefront
Technologies.
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 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.
Technology Portfolio
In May, independent mutual fund analyst Morningstar awarded Technology
Portfolio its highest rating, Five Stars, among 3,043 equity funds for the
three-, five- and 10-year periods ended April 30, 1995.** For the six months
ended 4/30/95, Technology Portfolio achieved a total return of 14.15%, compared
to 10.42% for the S&P 500. (Of course, past performance is not a guarantee of
future results.)*
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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 4/30/95.
Historically, technology is a seasonal sector -- doing well in the autumn
and winter, with a slowdown from March through July every one of the past seven
years. Accordingly, we have taken profits and temporarily boosted the fund's
cash position.
Semiconductors, computer software, and electronics were all cut back
heavily. All but one of our existing positions in semiconductors were closed.
Among software companies, we sold Keane Inc, Microsoft Corp, and five others. We
have retained a position in State of the Art; this company enjoys a niche
position in the field of accounting software and has recently improved
fundamentals which we believe will lead to accelerating earnings growth.
<PAGE>
Technology Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 24.05%
5 years 23.25%
10 years 19.35%
Over the past year, our focus on electronics has dropped from nearly 18%
to less than 10% of fund holdings. This industry has provided excellent returns
in the past, and in our opinion it retains excellent potential for the remainder
of this decade, at least. However, we believe a more diversified portfolio will
enjoy greater stability, and there is no question that volatility in the
technology sector will continue.
The electronics sector remains important to our strategy, of course. In
the past six months, we took profits on Texas Instruments and Zenith
Electronics. However, we added new positions in three stocks: Advanced Micro
Devices, Perkin-Elmer, and Three-Five Systems.
The weighting in computer systems was also decreased during this period.
Increased competition is this area may lead to product pricing strategies which
could cut into earnings. Retaining IBM, we sold Compaq Computer, XcelleNet Inc,
and two others.
The weighting of a single industry was increased over the last six months:
computer services, where we took new positions in Analysts International,
Control Data Systems,and Fiserv Inc.
Technology Portfolio is managed by investment veteran Daniel B. Leonard,
whose 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.
Utilities Portfolio
For the six months ended 4/30/95, Utilities Portfolio had a total return
of 1.27%, compared to 10.42% for the S&P 500. Against the industry sector, our
strategy has paid off: For the one-year period ended 4/30/95, the Dow Jones
Utilities Average (DJUA) lost 2.45%, while Utilities Portfolio had a positive
total return of 1.17%. (Of course, past performance is not a guarantee of future
results.)*
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the 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
4/30/95.
There was a time when utilities stocks appeared to be a conservative
equity play. However, this sector has always been very bond-like in its reaction
to interest rates, for both good and bad. 1994 showed the negative side: As
short-term interest rates rose with six increases by the Federal Reserve Board,
stock prices were hammered, and the DJUA lost over 20% on a total return basis.
Again, INVESCO Utilities Portfolio did far better than the index, with a
negative total return of 9.94% for all of 1994. (Of course, past performance is
not a guarantee of future results.)*
The utilities sector rallied at the beginning of this year, but prices
have continued to be variable in the weeks since. Our investment strategy
emphasizes yield, as we seek to add a measure of stability in a volatile market.
Utilities Portfolio
Average Annualized Total Return
as of 4/30/95*
1 year 1.17%
5 years 11.15%
Since inception (6/86) 9.69%
<PAGE>
Interest rates have stabilized -- and may even decrease somewhat. Over
recent weeks, we have responded to this change by substantially increasing the
weighting in electric utilities; new holdings include Texas Utilities, Houston
Industries, Ohio Edison, and several others.
Yields in telecommunications, in particular, are relatively low compared
to electric utilities. As we shifted strategy, the weightings in
telecommunications and telephone utilities were cut well back. At 10/31/94, six
of our top 10 common stocks by value fell into these two categories. Now the
list is dominated by electric utilities.
Rising commodity prices have brought renewed stability to natural gas
prices, and here too we increased our exposure, buying an Argentine ADR,
MetroGas SA. (American Depository Receipts are denominated in U.S. dollars and
traded on U.S. exchanges.)
One other strategic move deserves mention. Latin American issues have
lapsed into disfavor -- out of general caution and more fundamental reasons.
However, the fallout from winter's peso devaluation has created some buying
opportunities for the selective investor. We have purchased two Argentine ADRs
and will consider additional possibilities as they arise.
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.
*Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Investment return and principal value
will fluctuate so that, when redeemed, an investor's shares may be worth more or
less than when purchased. The S&P 500 is an unmanaged index considered
representative of the performance of the broad U.S. stock market. The Dow Jones
Utilities Average is a composite illustrating performance of common stocks of
public utilities companies.
**Morningstar's proprietary ratings reflect historical risk-adjusted
performance as of 4/30/95 and are subject to change every month. These ratings
are calculated from the portfolio's 3-, 5-, and 10-year average annual total
returns (based on available track records) in excess of 90-day Treasury bill
returns with appropriate fee adjustments and risk factors that reflect portfolio
performance below 90-day Treasury bill returns. The top 10% of funds in an
investment category receive 5 stars; the next 22.5% receive 4 stars.
Rankings provided by Lipper Analytical Services, an independent fund
analyst, are based upon total return performance unadjusted for commissions.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Ten Largest Common Stock Holdings
April 30, 1995
Description Value
- --------------------------------------------------------------------------
ENERGY Portfolio
Atlantic Richfield $ 4,236,500
Exxon Corp 3,829,375
Mobil Corp 3,795,000
Western Atlas 3,375,000
Royal Dutch Petroleum 5 Gldr Shrs 3,100,000
British Petroleum PLC ADR 3,014,375
Phillips Petroleum 2,975,000
Chevron Corp 2,842,500
Baker Hughes 2,812,500
Petroleum Geo-Services A/S
Sponsored ADR 2,731,250
ENVIRONMENTAL SERVICES Portfolio
Boston Scientific $ 2,167,247
Chambers Development Class A 1,828,125
Thermo Electron 1,724,000
United Waste Systems 1,723,250
Laidlaw Inc Class B 1,710,000
IMCO Recycling 1,701,000
Browning-Ferris Industries 1,687,950
WMX Technologies 1,675,875
Wheelabrator Technologies 1,667,500
Continental Waste Industries 1,500,000
FINANCIAL SERVICES Portfolio
Chemical Banking $ 12,525,000
St Paul Cos 9,625,000
First USA 9,562,500
Mid Ocean Ltd 9,303,125
Citicorp 9,275,000
Chase Manhattan 8,750,000
Firstar Corp 8,662,500
Comerica Inc 8,625,000
SAFECO Corp 8,475,000
Bank of New York 8,218,750
GOLD Portfolio
Diamond Fields Resources $ 18,340,530
Goldcorp Inc Class A 11,000,660
Golden Star Resources 10,631,250
Franco-Nevada Mining $ 9,994,739
Newmont Mining 9,421,875
Aber Resources Ltd 8,203,125
Euro-Nevada Mining 8,102,353
Santa Fe Pacific Gold 7,575,000
Viceroy Resources 7,111,384
Prime Resources Group 6,889,755
HEALTH SCIENCES Portfolio
Boston Scientific $ 25,739,260
A L Pharma Class A 23,875,000
HBO & Co 21,731,250
Nellcor Inc 21,165,000
Columbia/HCA Healthcare 20,374,200
Amgen Inc 20,352,500
<PAGE>
IDEXX Laboratories 20,038,000
Baxter International 19,633,750
Merck & Co 19,293,750
American Home Products 19,281,250
LEISURE Portfolio
Disney (Walt) Co $ 6,368,125
Turner Broadcasting Class B 6,256,250
Avid Technology 6,046,875
Houghton Mifflin 6,015,625
Harcourt General 5,886,000
CBS Inc 5,733,096
Hilton Hotels 5,728,125
McGraw-Hill Inc 5,596,875
Mattel Inc 5,455,066
Viacom Inc Class B 5,450,042
TECHNOLOGY Portfolio
General Motors Class E $ 17,300,000
First Financial Management 14,625,000
First Data 14,062,500
Xerox Corp 12,312,500
Ceridian Corp 10,350,000
SAP AG Ord Shrs 10,345,078
International Business Machines 9,475,000
HBO & Co 9,150,000
National Data 8,898,094
Fiserv Inc 7,950,000
UTILITIES Portfolio
Houston Industries $ 5,530,000
New York State Electric & Gas 4,707,500
Rochester Gas & Electric 4,393,125
Texas Utilities 4,241,250
YPF Sociedad Anonima ADR
Representing Class D Shrs 3,442,500
U S WEST 3,434,125
Niagara Mohawk Power 3,300,862
Vodafone Group PLC
Sponsored ADR 3,187,500
Sprint Corp 3,135,000
Television Broadcasts Ltd 2,761,294
Composition of holdings is subject to change.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Investment Securities
April 30, 1995
UNAUDITED
Country Code Shares or
if Principal
Description Applicable Amount Value
- -------------------------------------------------------------------------------
ENERGY Portfolio
COMMON STOCKS
& RIGHTS 83.11%
DIVERSIFIED COMPANIES 2.15%
Tenneco Inc 45,000 $ 2,064,375
------------
Oil & Gas 80.96%
EQUIPMENT 10.15%
Baker Hughes 125,000 2,812,500
Camco International 100,000 2,362,500
Dresser Industries 100,000 2,187,500
Tidewater Inc 100,000 2,375,000
------------
9,737,500
------------
EXPLORATION & PRODUCTION 11.06%
Apache Corp 50,000 1,350,000
Barrett Resources* 100,000 2,350,000
Bellwether Exploration* 150,000 918,750
Burlington Resources 50,000 1,956,250
Chesapeake Energy* 50,000 1,212,500
Enron Oil & Gas 75,000 1,715,625
Forcenergy Gas Exploration
Rights*@+ 95 0
Ranger Oil Ltd 150,000 1,106,250
------------
10,609,375
------------
FIELD SERVICES 12.82%
BJ Services* 75,000 1,715,625
Dawson Geophysical* 90,000 1,248,750
Halliburton Co 35,000 1,343,125
Petroleum Geo-Services A/S
Sponsored ADR* 100,000 2,731,250
Schlumberger Ltd 30,000 1,886,250
Western Atlas* 75,000 3,375,000
------------
12,300,000
------------
INTEGRATED 14.69%
Amerada Hess 40,000 2,025,000
Amoco Corp 20,000 1,312,500
Atlantic Richfield 37,000 4,236,500
Occidental Petroleum 60,000 1,380,000
Phillips Petroleum 85,000 2,975,000
Unocal Corp 75,000 2,156,250
------------
14,085,250
------------
INTERNATIONAL 20.67%
British Petroleum PLC ADR 35,000 3,014,375
Chevron Corp 60,000 2,842,500
Exxon Corp 55,000 3,829,375
<PAGE>
Mobil Corp 40,000 3,795,000
Phoenix Resource 50,000 1,425,000
Royal Dutch Petroleum
5 Gldr Shrs 25,000 3,100,000
Union Texas Petroleum
Holdings 85,000 1,816,875
------------
19,823,125
------------
OFFSHORE DRILLING 4.18%
Global Marine* 300,000 1,312,500
Sonat Offshore Drilling 100,000 2,700,000
------------
4,012,500
------------
PRODUCTION/PIPELINE 3.93%
Panhandle Eastern 75,000 1,800,000
Williams Cos 60,000 1,972,500
------------
3,772,500
------------
REFINING/MARKETING 3.46%
Diamond Shamrock 50,000 1,343,750
Tesoro Petroleum* 200,000 1,975,000
------------
3,318,750
------------
TOTAL OIL & GAS 77,659,000
------------
TOTAL COMMON STOCKS
& RIGHTS
(Cost $73,871,400) 79,723,375
------------
PREFERRED STOCKS 1.18%
OIL & GAS-EXPLORATION
& PRODUCTION 1.18%
Snyder Oil Depository Shrs (Each shr consists
of one-quarter interest in a shr
of 6% Conv Exch Pfd)(Cost $ 1,329,930) 52,000 1,131,000
------------
FIXED INCOME SECURITIES 1.04%
OIL & GAS-EXPLORATION
& PRODUCTION 1.04%
Forcenergy Gas Exploration
Exch Conv Sub Notes +
7.000%, 9/15/2000
(Cost $ 1,000,000) 1,000,000 1,000,000
------------
SHORT-TERM INVESTMENTS-
REPURCHASE AGREEMENTS 14.67%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/28/1995 due 5/1/1995
at 5.850%, repurchased at
$14,078,860 (Collateralized
by US Treasury Notes due
11/30/1998 at 5.125%, value
$14,363,987)
(Cost $14,072,000) 14,072,000 14,072,000
------------
<PAGE>
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $90,273,330)
(Cost for Income Tax Purposes
$90,323,575) $ 95,926,375
============
ENVIRONMENTAL SERVICES Portfolio
COMMON STOCKS
& WARRANTS 62.39%
AGRICULTURAL 0.55%
Cadiz Land* 50,000 225,000
------------
CHEMICALS 5.73%
Cominco Fertilizers Ltd 45,000 1,376,573
Engelhard Corp 25,000 959,375
------------
2,335,948
------------
COMPUTER SOFTWARE 2.22%
Cerner Corp* 17,000 903,125
------------
DIVERSIFIED COMPANIES 4.19%
Laidlaw Inc Class B 190,000 1,710,000
------------
ENERGY 4.09%
Wheelabrator Technologies 115,000 1,667,500
------------
FOOD PRODUCTS & BEVERAGES 2.09%
General Mills 14,000 854,000
------------
MACHINERY 4.23%
Thermo Electron* 32,000 1,724,000
------------
MEDICAL INSTRUMENTS 5.32%
Boston Scientific* 79,532 2,167,247
------------
Pollution Control 33.19%
EQUIPMENT/SYSTEMS 3.68%
Continental Waste Industries* 125,000 1,500,000
------------
RECYCLING 7.46%
IMCO Recycling 108,000 1,701,000
TETRA Technologies* 100,000 1,337,500
------------
3,038,500
------------
SERVICES 17.91%
Chambers Development Class A* 325,000 1,828,125
Rollins Environmental Services* 100,000 462,500
Sanifill Inc* 52,200 1,389,825
United Waste Systems* 61,000 1,723,250
WMX Technologies 61,500 1,675,875
Western Waste* 12,000 222,000
------------
7,301,575
------------
TRANSPORTATION 4.14%
Browning-Ferris Industries 51,150 1,687,950
------------
TOTAL POLLUTION
CONTROL 13,528,025
------------
<PAGE>
TELECOMMUNICATIONS 0.77%
Periphonics Corp* 20,000 315,000
------------
UTILITIES 0.01%
York Research (Exp 1995)
Class A Warrants* 1,398 2,446
Class B Warrants* 419 1,048
------------
3,494
------------
TOTAL COMMON STOCKS
& WARRANTS
(Cost $22,212,116) 25,433,339
------------
PREFERRED STOCKS 0.28%
POLLUTION CONTROL-RECYCLING 0.28%
Cyclean Inc, Series D Pfd*+
(Cost $500,000) 125,000 115,000
------------
SHORT-TERM INVESTMENTS 37.33%
Commercial Paper 13.87%
FINANCE RELATED 13.87%
Ford Motor Credit
5.930%, 5/5/1995 $ 1,982,000 1,982,000
General Motors Acceptance
5.980%, 5/3/1995 $ 1,836,000 1,836,000
Sears Roebuck Acceptance
5.930%, 5/5/1995 $ 1,836,000 1,836,000
------------
TOTAL COMMERCIAL PAPER
(Cost $5,654,000) 5,654,000
------------
Repurchase Agreements 23.46%
Repurchase Agreement with
Street Street Bank & Trust Co
dated 4/28/1995 due 5/1/1995 at 5.850%,
repurchased at $9,567,662 (Collateralized
by US Treasury Notes due 11/30/1998
at 5.125%, value $9,763,439)
(Cost $9,563,000) $ 9,563,000 9,563,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $15,217,000) 15,217,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $37,929,116) (Cost for Income
Tax Purposes $38,010,603) $ 40,765,339
============
FINANCIAL SERVICES Portfolio
COMMON STOCKS 84.90%
BANKING 32.63%
Banc One 200,000 5,900,000
Bank of New York 250,000 8,218,750
BayBanks Inc 45,000 2,812,500
Chase Manhattan 200,000 8,750,000
<PAGE>
Chemical Banking 300,000 12,525,000
Citicorp 200,000 9,275,000
Comerica Inc 300,000 8,625,000
First Interstate Bancorp 50,000 3,843,750
First Security 100,000 2,387,500
Firstar Corp 300,000 8,662,500
Mellon Bank 50,000 1,962,500
NBD Bancorp 150,000 4,593,750
Shawmut National 175,000 4,637,500
------------
82,193,750
------------
COMPUTER RELATED 7.76%
International Business Machines 75,000 7,106,250
LEGENT Corp* 200,000 5,450,000
SunGard Data Systems* 150,000 6,993,750
------------
19,550,000
------------
FINANCIAL SERVICES 8.78%
Beneficial Corp 135,000 5,501,250
First Data 25,000 1,406,250
First USA 225,000 9,562,500
Transamerica Corp 100,000 5,662,500
------------
22,132,500
------------
HEALTH MAINTENANCE
ORGANIZATIONS 4.55%
Foundation Health* 275,000 7,631,250
Physician Corp of America* 215,000 3,843,125
------------
11,474,375
------------
INSURANCE 22.99%
Allied Group 230,000 6,727,500
American General 150,000 4,950,000
John Alden Financial 125,000 2,265,625
Mid Ocean Ltd 325,000 9,303,125
PartnerRe Holdings Ltd 280,000 6,440,000
PennCorp Financial Group 135,000 2,328,750
SAFECO Corp 150,000 8,475,000
St Paul Cos 200,000 9,625,000
Torchmark Corp 200,000 7,800,000
------------
57,915,000
------------
REAL ESTATE RELATED 5.71 %
Beacon Properties REIT 50,000 981,250
CenterPoint Properties REIT 100,000 1,900,000
Insignia Financial Group
Class A* 213,000 4,952,250
Irvine Apartment
Communities REIT 50,000 787,500
Regency Realty~ 325,000 5,159,375
South West Property Trust REIT 50,000 593,750
------------
14,374,125
------------
RETAIL 2.48%
Meyer (Fred) Inc* 200,000 6,250,000
------------
<PAGE>
TOTAL COMMON STOCKS
(Cost $206,189,542) 213,889,750
------------
SHORT-TERM INVESTMENTS-
COMMERCIAL PAPER 15.10%
FINANCE RELATED 12.37%
Associates Corp of North America
5.970%, 5/1/1995 $ 6,782,000 6,782,000
Chevron Oil Finance
5.900%, 5/5/1995 $ 6,782,000 6,782,000
Ford Motor Credit
5.930%, 5/4/1995 $ 9,647,000 9,647,000
Sears Roebuck Acceptance
5.930%, 5/3/1995 $ 7,960,000 7,960,000
------------
31,171,000
------------
MACHINERY 2.73%
Deere & Co
5.900%, 5/2/1995 $ 6,869,000 6,869,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $38,040,000) 38,040,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $244,229,542) (Cost for
Income Tax Purposes $244,374,437) $251,929,750
============
GOLD Portfolio
COMMON STOCKS 86.35%
BANKING 2.17%
Bank fuer Internationalen
Zahlungsausgleich SZ 600 $ 4,728,548
------------
EXPLORATION & MINING 84.18%
Aber Resources Ltd* CA 1,400,000 8,203,125
Acacia Resources Ltd* AS 500,000 986,169
Addington Resources* US 30,000 337,500
Agnico Eagle Mines CA 200,000 2,300,000
Amax Gold* US 300,000 1,687,500
Arizona Star Resource* CA 699,500 221,049
Atlas Corp* US 255,700 447,475
Baja Gold* CA 100,000 150,656
Barrick Gold CA 75,000 1,809,375
Battle Mountain Gold US 400,000 4,400,000
Bema Gold* CA 1,300,000 2,681,250
Bolivar Goldfields* CA 500,000 551,180
Cambior Inc CA 200,000 2,275,000
Canyon Resources* US 750,000 1,546,875
Caribgold Resources* CA 238,700 245,591
Carson Gold*~ CA 629,800 786,836
Cathedral Gold* CA 450,000 677,952
Consolidated Magna Ventures* CA 200,000 67,611
Consolidated Ramrod Gold* CA 551,000 2,272,875
Crown Resources*~ US 960,000 4,440,000
Dayton Mining* CA 1,000,000 3,086,610
Delta Gold Mining* CA 250,000 174,540
Delta Gold NL AS 500,000 1,022,559
<PAGE>
Diamond Fields Resources* CA 550,000 18,340,530
Ecuadorian Minerals* CA 65,000 54,934
Eden Roc Mineral* CA 450,000 820,156
El Callao Mining* CA 400,000 264,566
Euro-Nevada Mining CA 300,000 8,102,353
Francisco Gold*~ CA 400,000 476,220
Franco-Nevada Mining CA 200,000 9,994,739
Goldcorp Inc Class A* CA 1,000,060 11,000,660
Golden Shamrock Mines* AS 5,000,000 3,457,050
Golden Star Resources*~ US 1,350,000 10,631,250
Great Central Mines NL AS 800,000 1,688,496
Greenstone Resources* CA 500,000 671,875
Guyana Gold* CA 600,000 1,499,210
Guyanor Resources SA Class B* FR 689,000 1,377,275
International Taurus Resources* CA 100,000 264,788
Lexam Explorations* CA 100,000 73,491
Loki Gold*~ CA 1,685,000 1,857,477
MK Gold*~ US 1,350,000 5,062,500
Manhattan Minerals* CA 220,000 242,519
Miramar Mining* CA 466,100 2,397,782
Monarch Resources* CA 280,000 607,033
Monarch Resources* UK 40,000 88,833
Newcrest Mining* AS 1,000,000 4,279,464
Newmont Mining US 225,000 9,421,875
Original Sixteen to One Mine* US 96,100 348,363
Orvana Minerals*~ CA 1,400,000 4,578,472
Placer Dome CA 150,000 3,562,500
Prime Resources Group* CA 1,000,000 6,889,755
Queenstake Resources*~ CA 1,400,000 1,028,870
Rayrock Yellowknife Resources* CA 121,700 1,285,674
San Fernando Mining*~ CA 600,000 1,093,541
Santa Fe Pacific Gold* US 600,000 7,575,000
Solitario Resources* CA 204,000 158,916
Sons of Gwalia Ltd AS 450,800 1,984,958
Stillwater Mining* US 180,000 3,465,000
Sutton Resources Ltd* US 100,000 850,000
TVX Gold* CA 400,000 2,900,000
Teck Corp Class B CA 50,000 872,702
Texas Star Resources* US 500,000 125,000
Tombstone Explorations* CA 500,000 286,614
Trillion Resources*~ CA 606,800 1,850,658
Vengold Inc* CA 1,000,000 2,000,000
Viceroy Resources*~ CA 1,334,700 7,111,384
Western Garnet* CA 40,300 88,850
Wharf Resources CA 300,000 2,400,000
------------
183,503,061
------------
TOTAL COMMON STOCKS
(Cost $207,547,107) 188,231,609
------------
PREFERRED STOCKS 7.10%
EXPLORATION & MINING 2.54%
Battle Mountain Gold
$3.25, Conv Pfd US 50,000 2,900,000
Hecla Mining, $3.50, Series B
Cum Conv Pfd US 52,100 2,637,563
------------
5,537,563
------------
<PAGE>
METALS 4.56%
Freeport McMoRan Copper & Gold
7.000%, Conv Pfd US 400,000 9,950,000
------------
TOTAL PREFERRED STOCKS
(Cost $15,192,351) 15,487,563
------------
FIXED INCOME SECURITIES 3.03%
EXPLORATION & MINING 2.41 %
Bema Gold, Conv Deb
7.500%, 2/28/2000 CA $ 5,000,000 5,250,000
------------
METALS 0.62%
Canyon Resources, Conv Sub
Notes, 6.000%, 6/1/1998+ US $ 2,000,000 1,350,000
------------
TOTAL FIXED INCOME SECURITIES
(Cost $7,000,000) 6,600,000
------------
SHORT-TERM INVESTMENTS-
COMMERCIAL PAPER 3.52%
FINANCE RELATED 3.52%
Associates Corp of North America
5.970%, 5/1/1995
(Cost $7,671,000) US $ 7,671,000 7,671,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $237,410,458) (Cost for
Income Tax Purposes $237,681,530) $ 217,990,172
=============
HEALTH SCIENCES Portfolio
COMMON STOCKS
& WARRANTS 87.62%
BIOTECHNOLOGY 5.46%
Amgen Inc* 280,000 $ 20,352,500
BioCryst Pharmaceuticals* 250,000 1,593,750
Cephalon Inc* 111,100 916,575
Creative BioMolecules* 700,000 1,662,500
Ecogen Technologies l*+~ 100 1,320,000
ImClone Systems*~ 650,000 406,250
Interpore Intemational* 350,000 1,968,750
MedClone Inc Warrants
(Exp 1998)*@+ 500,000 0
SciGenics Inc*~ 145,000 1,812,500
UroMed Corp* 205,000 1,435,000
UroMed Corp* + 274,333 1,728,298
------------
33,196,123
------------
COMPUTER RELATED 6.78%
Cerner Corp* 250,000 13,281,250
CliniCom Inc* 317,000 6,260,750
HBO & Co 475,000 21,731,250
------------
41,273,250
------------
HEALTH CARE FACILITIES 10.71%
Assisted Living Concepts*~ 250,000 2,812,500
Beverly Enterprises* 700,000 10,062,500
Columbia/HCA Healthcare 485,100 20,374,200
<PAGE>
Living Centers of America* 265,000 7,519,375
OrNda Healthcorp* 387,000 6,772,500
Salick Health Care*~ 245,000 8,452,500
Sun Healthcare Group* 381,000 9,191,625
------------
65,185,200
------------
HEALTH CARE SERVICES 4.17%
Diagnostek Inc* 350,000 6,475,000
Homedco Group* 329,700 18,875,325
------------
25,350,325
------------
HEALTH MAINTENANCE
ORGANIZATIONS 0.42%
Physician Corp of America* 144,300 2,579,362
------------
MEDICAL EQUIPMENT & SUPPLIES 6.86%
Becton Dickinson & Co 337,500 18,815,625
Diametrics Medical*~ 170,000 1,062,500
Diametrics Medical*+~ 409,554 2,175,756
EP Technologies* 350,000 3,281,250
Johnson & Johnson 252,000 16,380,000
------------
41,715,131
------------
MEDICAL INSTRUMENTS 3.29%
IDEXX Laboratories* 466,000 20,038,000
------------
MEDICAL PRODUCTS 22.44%
Allergan Inc 405,000 10,985,625
Baxter International 565,000 19,633,750
Biomet Inc* 1,095,000 19,162,500
Boston Scientific* 944,560 25,739,260
Corvita Corp* 100,000 437,500
Electroscope Inc*+~ 157,500 787,500
Electroscope Inc Warrants
(Exp 1996)*@ + 42,000 0
Emisphere Technologies*~ 500,000 750,000
Guidant Corp* 835,000 16,595,625
Nellcor lnc* 510,000 21,165,000
Penederm Inc* 255,000 1,211,250
Sofamor/Danek Group* 700,000 16,975,000
Ventritex Inc* 170,000 2,550,000
Wisconsin Pharmacal* 125,000 546,875
------------
136,539,885
------------
MEDICAL RELATED--DRUGS 20.35%
A L Pharma Class A~ 1,000,000 23,875,000
American Home Products 250,000 19,281,250
Biovail Corp* 387,443 6,538,101
CIMA Labs*~ 50,000 243,750
ClMA Labs*+~ 416,666 1,828,122
Circa Pharmaceticals* 170,900 4,165,687
Crown Laboratories* + ~ 759,792 1 ,654,922
Dura Pharmaceuticals* 80,000 1,225,000
Ethical Holdings ADR* 285,000 1,745,625
Forest Laboratories* 134,800 6,066,000
INCYTE Pharmaceuticals* 180,000 2,947,500
Merck & Co 450,000 19,293,750
Mylan Laboratories 530,000 16,297,500
<PAGE>
Neurobiological Technologies* 150,000 525,000
Noven Pharmaceuticals* 250,000 2,125,000
Shaman Pharmaceuticals* 129,670 502,471
Shaman Pharmaceuticals* + 36,997 129,027
Sparta Pharmaceuticals* + 500,000 1 ,939,062
TheraTech Inc* 175,000 2,209,375
Univax Biologics* 350,000 2,318,750
Vical Inc* 275,000 2,165,625
Watson Pharmaceuticals* 217,000 6,754,125
------------
123,830,642
------------
MEDICAL SERVICES 7.14%
Caremark International 840,000 14,700,000
Medical Associates of
America* + ~ 502,935 1
OmniCare Inc 318,900 15,506,512
PhyCor Inc* 240,000 7,620,000
Renal Treatment Centers* 225,000 5,625,000
------------
43,451,513
------------
TOTAL COMMON STOCKS
& WARRANTS
(Cost $458,683,791) 533,159,431
------------
PREFERRED STOCKS 3.86%
BIOTECHNOLOGY 2.69%
Cambridge Heart, Series A
Conv Pfd* + ~ 1,200,000 1,200,000
Ingenex Inc, Series B Pfd* + ~ 240,000 600,000
Janus Biomedical, Series A
Conv Pfd* + ~ 400,000 1,000,000
MedClone Inc, Series G
Conv Pfd* + 581,396 1,000,001
Metra Biosystems, Series E
Pfd*+ 1,650,486 1,700,001
Multum Information Services
Series C Pfd*+~ 571,429 1,000,001
Oculon Corp, Series 111
Sr Pfd* + ~ 1,262,136 277,670
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 Pharmaceutical, Series A
Pfd*+~ 922,617 2,306,543
Unisyn Technologies
Series A, Conv Pfd*+~ 359,501 359,501
Series E, Conv Pfd* + ~ 31,132 31,132
Xenometrix Inc, Series B
Conv Pfd* + ~ 933,333 1,400,000
------------
16,394,476
------------
MEDICAL PRODUCTS 0.83%
Cardiometrics Inc, Series C
Conv Pfd* + 375,000 1,500,000
<PAGE>
Clarus Medical Systems
Series E, Conv Pfd* + ~ 400,000 533,320
KeraVision Inc, Series E Pfd* + 515,464 1,500,000
Landec Corp, Series D
Conv Pfd* + ~ 1,086,957 1,500,001
------------
5,033,321
------------
MEDICAL SERVICES 0.34%
Med-E-Systems Corp
Series A, Conv Pfd* + 485,900 48,590
Series B, Conv Pfd* + 282,900 2,000,103
------------
2,048,693
------------
TOTAL PREFERRED STOCKS
(Cost $24,871,832) 23,476,490
------------
FIXED INCOME SECURITIES 0.05%
BIOTECHNOLOGY 0.01%
MedClone Inc, 10%
Promissory Notes+ $ 1 36,840
------------
MEDICAL EQUIPMENT
& SUPPLIES 0.02%
Tetrad Corp
6%, Conv Promissory Notes+> $ 500,000 100
10%, Sr Sub Promissory
Notes+ $ 1 147,000
------------
147,100
------------
MEDICAL PRODUCTS 0.02%
Clarus Medical Systems, 9%
Conv Promissory Notes+ $ 1 108,182
------------
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 $2,481,926) 292,222
------------
OTHER SECURITIES 0.20%
MEDICAL RELATED--DRUGS 0.20%
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 1,200,000
------------
SHORT-TERM INVESTMENTS-
COMMERCIAL PAPER 8.27%
FINANCE RELATED 8.27%
Associates Corp of North America
5.970%, 5/1/1995 $25,566,000 25,566,000
Chevron Oil Finance
5.930%, 5/3/1995 $ 6,478,000 6,478,000
<PAGE>
Household Finance
5.920%, 5/4/1995 $ 18,297,000 18,297,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $50,341,000) 50,341,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $537,578,549) (Cost for
Income Tax Purposes $537,765,572) $ 608,469,143
=============
LEISURE Portfolio
COMMON STOCKS 83.73%
ADVERTISING 0.74%
Katz Media Group* 125,000 2,015,625
------------
AUDIO/VIDEO RELATED 4.11%
Granada Group PLC 500,000 4,582,482
Harman International Industries 65,000 2,372,500
Polygram NV ADR 75,000 4,218,750
------------
11,173,732
------------
BROADCASTING 14.17%
Australis Media Ltd* 2,000,000 1,222,704
CBS Inc 89,405 5,733,096
Capital Cities/ABC 50,000 4,225,000
Cinar Films* 65,000 471,250
Heritage Media Class A* 200,000 5,100,000
Renaissance Communications* 97,500 2,681,250
Television Broadcasts Ltd 200,000 744,284
Television Broadcasts Ltd
ADR + 750,000 2,791,125
Turner Broadcasting System
Class B 350,000 6,256,250
United Video Satellite Group
Class A* 125,000 3,218,750
Viacom Inc
Class A* 13,040 611,250
Class B* 118,802 5,450,042
------------
38,505,001
------------
CABLE TELEVISION 5.99%
Bell Cablemedia PLC
Sponsored ADR* 100,000 1,662,500
British Sky Broadcasting
Group PLC Sponsored ADR* 150,000 3,600,000
Jones Intercable Class A* 85,000 1,243,125
Rogers Communications
Class B* 300,000 3,582,673
Tele-Communications Inc
Class A* 250,000 4,781,250
United International Holdings
Class A* 100,000 1,425,000
------------
16,294,548
------------
<PAGE>
COMPUTER RELATED 3.92%
Apple Computer 75,000 2,868,750
7th Level* 95,000 819,375
Sierra On-Line* 187,200 3,533,400
Spectrum Holobyte* 225,000 3,431,250
------------
10,652,775
------------
ELECTRONICS 0.56%
Carlton Communications PLC 100,000 1,519,179
------------
FINANCE RELATED 2.39%
Block (H & R) Inc 75,000 3,159,375
Sotheby's Holdings Class A 250,000 3,343,750
------------
6,503,125
------------
FOOD PRODUCTS & BEVERAGES 1.00%
Seagram Ltd 100,000 2,712,500
------------
HOTELS 6.47%
Hilton Hotels 75,000 5,728,125
Hospitality Franchise System* 175,000 5,315,625
John Q Hammons Hotels
Class A* 200,000 3,025,000
La Quinta Inns 117,500 3,510,312
------------
17,579,062
------------
MOTION PICTURES & TELEVISION 3.07%
Avid Technology* 150,000 6,046,875
Cinergi Pictures Entertainment* 100,000 1,012,500
Spelling Entertainment Group 124,600 1,292,725
------------
8,352,100
------------
PUBLISHING 11.00%
American Greetings Class A 148,000 4,033,000
American Media Class A 68,000 425,000
Houghton Mifflin 125,000 6,015,625
McGraw-Hill Inc 75,000 5,596,875
Pearson PLC 100,000 922,129
Pulitzer Publishing 67,500 2,725,313
Time Warner 140,000 5,127,500
Verenigde Nederlendse
Uitgevsbedri Verigd Bezit 45,000 5,042,279
------------
29,887,721
------------
REAL ESTATE RELATED 0.32%
American Homestar* 80,000 880,000
------------
RECREATION SERVICES 8.62%
Aztar Corp* 50,000 462,500
Carnival Corp Class A 120,000 2,985,000
Casino America* 150,000 2,287,500
Disney (Walt) Co 115,000 6,368,125
Gaylord Entertainment Class A 115,700 2,733,412
MGM Grand* 50,000 1,518,750
Players International* 93,000 2,755,125
Primadonna Resorts* 150,000 3,712,500
Station Casinos* 50,000 612,500
------------
23,435,412
------------
<PAGE>
RETAIL 11.86%
Ann Taylor Stores* 112,700 2,831,588
Gymboree Corp* 175,000 4,112,500
Harcourt General 144,000 5,886,000
Home Shopping Network* 75,000 515,625
Limited Inc 100,000 2,137,500
Melville Corp 100,000 3,575,000
Nine West Group* 95,000 3,087,500
Proffitt's Inc* 75,000 1,856,250
Stop & Shop* 168,000 4,473,000
Williams-Sonoma Inc* 200,000 3,762,500
------------
32,237,463
------------
SPORTING GOODS 0.80%
Rawlings Sporting Goods* 200,000 2,175,000
------------
TELECOMMUNICATIONS 4.97 %
Centennial Cellular Class A* 75,000 1,050,000
Ericsson (L M) Telephone ADR
Representing Class B Shrs 50,000 3,353,125
General Instrument* 75,000 2,559,375
Rogers Cantel Mobile
Communications Class B* 100,000 2,390,625
Vodafone Group PLC
Sponsored ADR 130,000 4,143,750
------------
13,496,875
------------
TOBACCO 0.54%
PT HM Sampoerna 250,000 1,467,200
------------
TOYS & HOBBIES 2.49%
Happiness Express* 110,000 1,320,000
Mattel Inc 229,687 5,455,066
------------
6,775,066
------------
UTILITIES 0.71 %
Cable & Wireless PLC
Sponsored ADR 100,000 1,937,500
------------
TOTAL COMMON STOCKS
(Cost $210,645,958) 227,599,884
------------
PREFERRED STOCKS 0.42%
MOTION PICTURES & TELEVISION 0.42%
Village Roadshow Ltd, Pfd
(Cost $1,063,022) 500,000 1,146,285
------------
SHORT-TERM INVESTMENTS-
COMMERCIAL PAPER 15.85%
DIVERSIFIED COMPANIES 5.04%
General Electric
5.930%, 5/8/1995 $ 13,710,000 13,710,000
------------
FINANCE RELATED 7.94%
Chevron Oil Finance
5.930%, 5/3/1995 $ 11,991,000 11,991,000
<PAGE>
Ford Motor Credit
5.930%, 5/4/1995 $ 2,455,000 2,455,000
Sears Roebuck Acceptance
5.930%, 5/1/1995 $ 7,133,000 7,133,000
------------
21,579,000
------------
MACHINERY 2.87%
Deere & Co
5.900%, 5/2/1995 $ 7,797,000 7,797,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $43,086,000) 43,086,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $254,794,980) (Cost for
Income Tax Purposes $254,897,867) $271,832,169
============
TECHNOLOGY Portfolio
COMMON STOCKS 75.53%
BIOTECHNOLOGY 4.68 %
Amgen Inc* 100,000 7,268,750
Genzyme Corp* 150,000 6,412,500
Millipore Corp 100,000 6,137,500
------------
19,818,750
------------
BROADCASTING 0.00%
Future Communications* 160,000 1
------------
CABLE TELEVISION 0.79%
Heartland Wireless
Communications* 175,400 3,332,600
------------
COMPUTER LOCAL NETWORKS 0.66%
Apertus Technologies* 200,000 2,787,500
------------
COMPUTER PERIPHERALS
& SUPPLIES 1.98%
Adaptec Inc* 100,000 3,200,000
Iomega Corp* 200,000 2,000,000
Rend-Rite Corp* 150,000 3,187,500
------------
8,387,500
------------
COMPUTER SERVICES 15.28%
Analysts International 125,500 3,168,875
Cambridge Technology
Partners* 175,000 6,015,625
Ceridian Corp* 300,000 10,350,000
Computer Sciences* 150,000 7,406,250
Control Data Systems* 50,000 468,750
Fiserv Inc* 300,000 7,950,000
General Motors Class E 400,000 17,300,000
MICROS Systems* 100,000 3,112,500
National Data 477,750 8,898,094
------------
64,670,094
------------
<PAGE>
COMPUTER SOFTWARE 11.44%
Adobe Systems 100,000 5,825,000
Cellular Technical Services* 125,000 2,203,125
Cognos Inc* 150,000 3,637,500
Computer Associates
International 100,000 6,437,500
Expert Software* 90,000 1,327,500
Integrated Systems* 100,000 2,100,000
MacNeal-Schwendler Corp 157,500 2,303,437
McAfee Associates* 100,000 3,300,000
PLATINUM technology* 300,000 6,000,000
SAP AG 10,000 10,345,078
State Of The Art* 390,000 4,290,000
System Software Associates 25,000 628,125
------------
48,397,265
------------
COMPUTER SYSTEMS 7.85%
Apple Computer 55,000 2,103,750
Digital Equipment* 100,000 4,612,500
HBO & Co 200,000 9,150,000
International Business Machines 100,000 9,475,000
Micron Electronics* 300,000 4,237,500
Microtouch Systems* 100,000 3,650,000
------------
33,228,750
------------
ELECTRICAL EQUIPMENT 2.36%
Itron Inc* 150,000 3,787,500
Vishay Intertechnology* 105,000 6,208,125
------------
9,995,625
------------
ELECTRICAL PARTS DISTRIBUTORS 0.61 %
Kent Electronics* 87,500 2,570,313
------------
ELECTRONICS 8.76%
Advanced Micro Devices* 200,000 7,200,000
Altera Corp* 25,000 2,021,875
Analog Devices* 75,000 2,015,625
Benchmark Electronics* 25,000 512,500
Genus Inc* 400,000 4,250,000
Perkin-Elmer 200,000 6,225,000
Sanmina Corp* 100,000 3,412,500
Scientific-Atlanta Inc 200,000 4,550,000
Sensormatic Electronics 150,000 4,462,500
Three-Five Systems* 100,000 2,425,000
------------
37,075,000
------------
FINANCE RELATED 6.78%
First Data 250,000 14,062,500
First Financial Management 200,000 14,625,000
------------
28,687,500
------------
MACHINERY 0.89%
Thermo Electron* 70,000 3,771,250
------------
MEDICAL RELATED--DRUGS 0.04%
Pharmos Corp* 208,334 182,292
------------
<PAGE>
METALS & MINING 1.03%
CasTech Aluminum Group* 200,000 2,650,000
Zemex Corp* 178,500 1,695,750
------------
4,345,750
------------
OFFICE EQUIPMENT 2.91%
Xerox Corp 100,000 12,312,500
------------
PHOTO EQUIPMENT & SUPPLIES 0.33%
Ultratech Stepper* 25,000 1,400,000
------------
POLLUTION CONTROL RELATED 0.46%
Daw Technologies* 300,000 1,931,250
------------
PROTECTION--SAFETY
EQUIPMENT & SERVICES 1.64%
Pittway Corp Class A 119,000 5,250,875
Stimsonite Corp* 130,000 1,673,750
------------
6,924,625
------------
SEMICONDUCTOR EQUIPMENT 1.07%
Cypress Semiconductor* 150,000 4,537,500
------------
SHIP BUILDING 0.27%
Avondale Industries* 150,000 1,125,000
------------
TELECOMMUNICATIONS 5.70%
AT&T Corp 100,000 5,075,000
Colonial Data Technologies* 100,000 1,975,000
Ericsson (L M) Telephone ADR
Representing Class B Shrs 100,000 6,706,250
General Instrument* 225,000 7,678,125
Global Village Communication* 200,000 2,700,000
------------
24,134,375
------------
TOTAL COMMON STOCKS
(Cost $255,911,248) 319,615,440
------------
PREFERRED STOCKS 1.75%
BIOTECHNOLOGY 0.07%
Ingenex Inc, Series B Pfd* + 120,000 300,000
------------
COMPUTER SOFTWARE 1.17%
SAP AG, Pfd 5,000 4,955,509
------------
DIVERSIFIED COMPANIES 0.24%
Alpine Group, 9%, Cum
Conv Pfd* + 1,000 1,000,000
------------
MEDICAL RELATED--DRUGS 0.27%
Titan Pharmaceuticals
Series A Pfd* + 461,308 1,153,270
------------
TOTAL PREFERRED STOCKS
(Cost $5,176,090) 7,408,779
------------
SHORT-TERM INVESTMENTS-
COMMERCIAL PAPER 22.72%
<PAGE>
FINANCE RELATED 19.46%
American General Finance
5.900%, 5/3/1995 $ 10,407,000 10,407,000
Chevron Oil Finance
5.850%, 5/1/1995 $ 12,740,000 12,740,000
Ford Motor Credit
5.940%, 5/9/1995 $13,796,000 13,796,000
General Motors Acceptance
5.980%,5/2/1995 $14,982,511 14,982,511
Household Finance
5.920%, 5/4/1995 $ 16,342,000 16,342,000
Sears Roebuck Acceptance
5.930%, 5/8/1995 $ 14,083,000 14,083,000
------------
82,350,511
------------
INSURANCE 3.26%
Prudential Funding
5.930%, 5/12/1995 $ 13,796,000 13,796,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $96,146,511 ) 96,146,511
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $357,233,849#) $423,170,730
============
UTILITIES Portfolio
COMMON STOCKS,
RIGHTS & WARRANTS 73.70%
AUDIO/VIDEO RELATED 1.10%
Granada Group PLC UK 150,000 1,374,745
------------
BROADCASTING 3.60%
NTN Communications* 100,000 512,500
Television Broadcasts Ltd HK 742,000 2,761,294
United Television 20,000 1,250,000
------------
4,523,794
------------
COMPUTER SYSTEMS 0.55%
Comverse Technology* 46,000 690,000
------------
ELECTRICAL EQUIPMENT 1.01 %
Vertex Communications* 90,000 1,271,250
------------
OIL & GAS RELATED 11.13%
Burlington Resources 12,000 469,500
Enterprise Oil PLC UK 400,000 2,648,908
Forcenergy Gas
Exploration Rights* @ + 95 0
MAPCO Inc 10,000 568,750
NGC Corp 9,919 95,470
Sonat Inc 55,000 1,670,625
Tosco Corp 9,500 325,375
Total Petroleum
North America Ltd CA 20,000 250,000
TransCanada PipeLines CA 140,000 1,872,500
Transportadora de Gas
del Sur SA Sponsored ADR
Representing Class B Shrs AR 230,000 2,271,250
<PAGE>
USX-Delhi Group 30,000 360,000
YPF Sociedad Anonima ADR
Representing Class D Shrs AR 170,000 3,442,500
------------
13,974,878
------------
PUBLISHING 0.23%
American Media Class A 46,000 287,500
------------
TELECOMMUNICATIONS 9.15%
American Paging* 30,000 204,375
Belden Inc 50,000 1,125,000
Cellular Communications of
Puerto Rico* 30,000 828,750
Centennial Cellular Class A* 45,000 630,000
Comsat Corp Series I 115,000 2,300,000
General Communication Class A* 24,500 102,594
Lincoln Telecommunications 53,000 821,500
Rogers Cantel Mobile
Communications Class B* CA 77,000 1,840,781
USA Mobile
Communications Holdings* 30,000 450,000
Vodafone Group PLC
Sponsored ADR UK 100,000 3,187,500
------------
11,490,500
------------
Utilities 46.93%
DIVERSIFIED 0.04%
UTILX Corp* 15,000 46,875
------------
ELECTRIC 26.97%
Central Maine Power 13,800 153,525
ClPSCO lnc 36,000 1,044,000
Commonwealth Energy
Systems 44,000 1,804,000
Entergy Corp 30,000 652,500
General Public Utilities 21,500 612,750
Houston Industries 140,000 5,530,000
IES Industries 90,800 1,884,100
Montana Power 30,000 693,750
National Power PLC
Sponsored ADR* UK 60,000 682,500
New York State
Electric & Gas 215,200 4,707,500
Niagara Mohawk Power 237,900 3,300,862
Ohio Edison 31,000 623,875
PowerGen PLC Sponsored ADR* UK 45,000 573,750
Public Service of Colorado 21,000 632,625
Public Service of New Mexico* 40,000 510,000
Rochester Gas & Electric 213,000 4,393,125
SCANA Corp 15,000 643,125
Sierra Pacific Resources 15,000 313,125
TNP Enterprises 10,200 161,925
Texas Utilities 130,000 4,241,250
Tucson Electric Power* 50,000 168,750
Unicom Corp 20,000 525,000
York Research (Exp 1995)
Class A Warrants* 2,042 3,574
Class B Warrants* 613 1,533
------------
33,857,144
------------
<PAGE>
GAS 6.28%
Chesapeake Utilities 59,000 767,000
Equitable Resources 55,000 1,574,375
MetroGas SA
Sponsored ADR AR 140,000 1,382,500
New Jersey Resources 35,000 787,500
NICOR Inc 25,000 618,750
Southwestern Energy 45,000 686,250
Westcoast Energy 130,000 2,063,750
------------
7,880,125
------------
TELEPHONE 13.64%
Bell Atlantic 34,000 1,865,750
Cincinnati Bell 56,000 1,344,000
NYNEX Corp 50,000 2,043,750
Southern New England
Telecommunications 79,000 2,616,875
Southwestern Bell 61,000 2,691,625
Sprint Corp 95,000 3,135,000
U S WEST 83,000 3,434,125
------------
17,131,125
------------
TOTAL UTILITIES 58,915,269
------------
TOTAL COMMON STOCKS,
RIGHTS & WARRANTS
(Cost $93,880,109) 92,527,936
------------
PREFERRED STOCKS 9.03%
OIL & GAS RELATED 1.94%
Coastal Corp, 8.50%
Series H Pfd* 100,000 2,437,500
------------
UTILITIES 7.09%
Alabama Power, 7.60%
Class A Pfd 90,000 2,250,000
Consumers Power, $2.08, Series
Class A Pfd 50,000 1,237,500
Long Island Lighting, 7.95%
Series AA Pfd 80,000 1,900,000
Niagara Mohawk Power
9.50%, Pfd 50,000 1,300,000
Texas Utilities Electric
Depository Shrs (Each shr
represents one-fourth
of a $7.22, Series B
Pfd Shr) 100,000 2,212,500
------------
8,900,000
------------
TOTAL PREFERRED STOCKS
(Cost $11,127,300) 11,337,500
------------
FIXED INCOME SECURITIES 8.87%
OIL & GAS RELATED 0.80%
Forcenergy Gas Exploration
Exch Conv Sub Notes+
7.000%, 9/15/2000 $ 1,000,000 1,000,000
------------
<PAGE>
UTILITIES 8.07%
Bell Telephone of Pennsylvania
Deb, 7.500%, 5/1/2013 $ 3,000,000 2,839,257
Commonwealth Edison
1st Mortgage, Series 35
8.125%, 1/15/2007 $ 2,000,000 1,949,304
Consolidated Natural Gas, Deb
8.625%, 12/1/2011 $ 1,500,000 1,578,072
GTE South, Deb
7.250%, 8/1/2002 $ 1,000,000 982,470
GTE Southwest, Series A, Deb
5.820%, 12/1/1999 $ 915,000 860,465
Niagara Mohawk Power
1st Mortgage
8.000%, 6/1/2004 $ 1,000,000 974,306
Southern Bell Telephone
& Telegraph Deb
7.625%, 3/15/2013 $ 1,000,000 954,972
------------
10,138,846
------------
TOTAL FIXED INCOME
SECURITIES
(Cost $11,646,055) 11,138,846
------------
SHORT-TERM INVESTMENTS 8.40%
US Government Obligations 1.93%
US Treasury Bills
6.480%, 11/16/1995 $ 2,500,000 2,419,707
------------
Commercial Paper 6.47%
FINANCE RELATED 6.47%
Associates Corp of North America
5.970%, 5/1/1995 $ 4,119,000 4,119,000
Ford Motor Credit
5.810%, 5/1/1995 $ 4,000,000 4,000,000
------------
8,119,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $10,448,993) 10,538,707
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $127,102,457) (Cost for
Income Tax Purposes $127,480,610) $ 125,542,989
=============
* Security is non-income producing.
@ Security has no market value at April 30, 1995.
# Also represents cost for income tax purposes.
~ Security is an affiliated company (See Note 6).
& Security is a payment-in-kind (PIK) bond. PIK bonds may
make interest payments in additional securities.
<PAGE>
+ The following are restricted securities at April 30, 1995:
Value as
Acquisition Acquisition % of
Description Date Cost Net Assets
- -------------------------------------------------------------------------------
Energy Portfolio
Forcenergy Gas Exploration,
Exch Conv Sub Notes
7.000%, 9/15/2000 9/16/93 $ 1,000,000 1.17%
Forcenergy Gas Exploration
Rights 6/14/94 0 0.00%
--------
1.17%
========
Environmental Services Portfolio
Cyclean Inc, Series D Pfd 2/23/94 $ 500,000 0.29%
========
Gold Portfolio
Canyon Resources
Conv Sub Notes
6.000%, 6/1/1998 5/20/93 $ 2,000,000 0.63%
========
Health Sciences Portfolio
Cambridge Heart
Series A, Conv Pfd 9/30/93 $ 1,200,000 0.20%
Cardiometrics Inc
Series C, Conv Pfd 3/18/93 1,500,000 0.25%
CIMA Labs 5/7/92-
11/21/94 2,499,996 0.30%
Clarus Medical Systems
Series E, Conv Pfd 3/26/93 2,000,000 0.09%
9%, Promissory Notes 11/9/94 108,182 0.02%
Crown Laboratories 8/25/93 1,139,699 0.27%
Diametrics Medical 6/21/94 2,499,996 0.36%
Dura Pharmaceuticals/
Dura Delivery
Systems Units 9/28/93 1,200,000 0.20%
Ecogen Technologies I 11/18/92-
3/14/94 1,140,000 0.22%
Electroscope Inc 4/28/93 787,500 0.13%
Electroscope Inc
Warrants 4/27/93 0 0.00%
Ingenex Inc, Series B
Pfd 9/28/94 600,000 0.10%
Janus Biomedical
Series A, Conv Pfd 3/3/94 1,000,000 0.16%
KeraVision Inc
Series E Pfd 11/20/92 1,500,000 0.25%
Landec Corp
Series D, Conv Pfd 7/6/93 1,500,001 0.25%
Med-E-Systems Corp
Series A Pfd 3/29/94 48,590 0.01%
Series B Pfd 3/17/94 2,000,103 0.33%
MedClone Inc
Series G Conv Pfd 10/22/93 1,000,001 0.16%
Warrants 10/22/93 0 0.00%
10%, Promissory Notes 10/7/94 36,840 0.01%
Medical Associates
of America 1/28/93-
10/3/94 502,935 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%
<PAGE>
Metra Biosystems
Series E Pfd 1/12/94 1,700,001 0.28%
Multum Information
Services, Series C
Conv Pfd 12/31/93 1,000,001 0.16%
Oculon Corp
Series 111 Sr Pfd 1/13/94 1,300,000 0.05%
ORBTEK Inc, Series A
Conv Pfd 5/16/94 999,999 0.16%
Osiris Therapeutics 5127194
Series C, Conv Pfd 12/23/94 1,300,000 0.21%
Physicians Online 8/31/93-
Series A Pfd 4/4/95 963,600 0.53%
Shaman
Pharmaceuticals 7/14/92 221,982 0.02%
Sparta
Pharmaceuticals 6/28/94 1,000,000 0.32%
Tetrad Corp
6%, Conv Promissory
Notes 4/12/94 500,000 0.00%
10%, Sr Sub Promissory
Notes 3/17/95 147,000 0.02%
Titan Pharmaceuticals 7/19/93-
Series A Pfd 4/12/95 2,000,035 0.38%
Unisyn Technologies
Series A, Conv Pfd 12/27/94 359,501 0.06%
Series E, Conv Pfd 2/28/94-
12/30/94 1,500,000 0.01%
UroMed Corp 9/16/93 1,249,998 0.24%
Xenometrix Inc 1/10/94-
Series B, Conv Pfd 12/2/94 1,400,000 0.23%
------------
5.98%
============
Leisure Portfolio
Television Broadcast Ltd 9/2/93-
ADR 3/21/94 $ 2,830,681 1.03%
============
Technology Portfolio
Alpine Group
9%, Cum Conv Pfd 4/21/92 $ 1,000,000 0.23%
Ingenex Inc, Series B
Pfd 9/28/94 300,000 0.07%
Titan Pharmaceuticals
Series A Pfd 7/20/93 1,000,000 0.26%
------------
0.56%
============
Utilities Portfolio
Forcenergy Gas Exploration
Exch Conv Sub Notes
7.000%, 9/15/2000 9/16/93 $ 1,000,000 0.81%
Forcenergy Gas Exploration
Rights 6/14/94 0 0.00%
------------
0.81%
============
> Securities are defaulted securities with respect to cumulative interest
payments at April 30, 1995. The securities have been devalued to $100 each.
Cumulative
Defaulted
Interest
Security Payments
- ------------------------------------------------------------------------------
Health Sciences Portfolio
Tetrad Corp, 6%, Conv Promissory Notes $ 27,957
Medical Associates of America, Conv Sr Notes
<PAGE>
Summary of Investments by Country
% of
Country Investment
Country Code Securities Value
- ------------------------------------------------------------------------------
Gold Portfolio
Australia AS 6.16% $ 13,418,696
Canada CA 56.67 123,529,919
France FR 0.63 1,377,275
Switzerland SZ 2.17 4,728,548
United Kingdom UK 0.04 88,833
United States US 34.33 74,846,901
---------- -------------
100.00% $ 217,990,172
========== =============
Utilities Portfolio
Argentina AR 5.65% $ 7,096,250
Canada CA 3.16 3,963,281
Hong Kong HK 2.20 2,761,294
United Kingdom UK 6.74 8,467,403
United States US 82.25 103,254,761
---------- -------------
100.00% $ 125,542,989
========== =============
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities
April 30, 1995
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
ASSETS
Investment Securities:
At Cost $ 76,201,330 $ 28,366,116 $ 244,229,542 $ 237,410,457
============ ============ ============ ============
At Value $ 81,854,375 $ 31,202,339 $ 251,929,750 $ 217,990,172
Repurchase Agreements at Value~ 14,072,000 9,563,000 0 0
Cash 11,323 21,807 0 25,523
Receivables:
Investment Securities Sold 2,305,323 958,580 8,629,696 86,655
Fund Shares Sold 518,411 1,103,783 397,421 465,849
Dividends and Interest 44,524 20,813 821,784 316,556
Prepaid Expenses and Other Assets 30,250 116,337 38,410 54,425
------------ ------------ ------------ ------------
TOTAL ASSETS 98,836,206 42,986,659 261,817,061 218,939,180
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Custodian 0 0 38 0
Investment Securities Purchased 12,376,584 2,769,070 3,046,137 2,837,494
Fund Shares Repurchased 1,078,381 116,604 373,260 1,853,416
Accrued Expenses and Other Payables 4,205 4,183 15,500 21,919
------------ ------------ ------------ ------------
TOTAL LIABILITIES 13,459,170 2,889,857 3,434,935 4,712,829
------------ ------------ ------------ ------------
Net Assets at Value $ 85,377,036 $ 40,096,802 $258,382,126 $214,226,351
============ ============ ============ ============
NET ASSETS
Paid-in Capital* $ 89,968,217 $ 46,986,145 $ 250,731,572 $ 250,462,472
Accumulated Undistributed
Net lnvestment lncome 24,198 127,566 2,468,498 319,544
Accumulated Undistributed Net Realized
Loss on Investment Securities (10,268,424) (9,853,132) (2,518,152) (17,135,379)
Net Appreciation (Depreciation) of
Investment Securities 5,653,045 2,836,223 7,700,208 (19,420,286)
------------ ------------ ------------ ------------
Net Assets at Value $ 85,377,036 $ 40,096,802 $258,382,126 $214,226,351
============ ============ ============ ============
Shares Outstanding 8,342,738 5,473,636 16,218,259 41,486,718
Net Asset Value, Offering and
Redemption price per Share $ 10.23 $ 7.33 $ 15.93 $ 5.16
============ ============ ============ ============
<FN>
~ Also represents cost.
* 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>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities (Continued)
April 30, 1995
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
ASSETS
Investment Securities:
At Cost $ 537,578,549 $ 254,794,980 $ 357,233,849 $ 127,102,457
============ ============ ============ ============
At Value $ 608,469,143 $ 271,832,169 $ 423,170,730 $ 125,542,989
Cash 492,009 6,669 0 0
Receivables:
Investment Securities Sold 15,843,660 6,963,385 11,882,970 90,000
Fund Shares Sold 1,651,330 460,507 6,130,610 196,631
Dividends and Interest 358,700 320,689 217,709 842,987
Prepaid Expenses and Other Assets 73,967 35,179 54,508 143,790
------------ ------------ ------------ ------------
TOTAL ASSETS 626,888,809 279,618,598 441,456,527 126,816,397
------------ ------------ ------------ ------------
Liabilities
Payables:
Custodian 0 0 0 1,964,202
Distributions to Shareholders 0 0 102,470 43,855
Investment Securities Purchased 12,983,117 7,529,024 2,624,667 506,000
Fund Shares Repurchased 3,340,188 216,707 2,898,01s 195,520
Accrued Expenses and Other Payables 27,865 18,104 17,888 8,813
------------ ------------ ------------ ------------
TOTAL LIABILITIES 16,351,170 7,763,745 5,643,040 2,718,390
------------ ------------ ------------ ------------
Net Assets at Value $ 610,537,639 $ 271,854,853 $ 435,813,487 $ 124,098,007
============ ============ ============ ============
NET ASSETS
Paid-in Capital* $ 517,464,938 $ 244,522,366 $ 351,897,631 $ 134,673,760
Accumulated Undistributed
Net Investment Income (Loss) (600,612) 680,917 (226,658) 348,503
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities 22,782,719 9,614,637 18,205,633 (9,364,788)
Net Appreciation (Depreciation)
of Investment Securities 70,890,594 17,036,933 65,936,881 (1,559,468)
------------ ------------ ------------ ------------
Net Assets at Value $ 610,537,639 $ 271,854,853 $ 435,813,487 $ 124,098,007
============ ============ ============ ============
Shares Outstanding 15,282,852 12,137,521 15,813,917 12,834,216
Net Asset Value, Offering
and Redemption Price per Share $ 39.95 $ 22.40 $ 27.56 $ 9.67
============ ============ ============ ============
<FN>
* 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>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc
Statement of Operations
Six Months Ended April 30, 1995
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 237,093 $ 52,852 $ 3,430,850 $ 1,345,996
Interest 225,724 250,017 1,554,107 358,137
Foreign Taxes Withheld (1,583) (1,016) 0 (57,565)
------------ ------------ ------------ ------------
TOTAL INCOME 461,234 301,853 4,984,957 1,646,568
------------ ------------ ------------ ------------
EXPENSES
Investment Advisory Fees 212,957 96,042 934,057 754,246
Transfer Agent Fees 144,360 122,059 523,730 380,846
Administrative Fees 9,259 6,921 23,681 20,089
Custodian Fees and Expenses 4,215 2,171 9,170 26,730
Directors' Fees and Expenses 4,710 3,902 10,276 11,055
Professional Fees and Expenses 7,455 7,061 11,821 11,258
Registration Fees and Expenses 28,335 16,400 30,307 50,373
Reports to Shareholders 22,851 28,218 95,311 62,510
Other Expenses 2,083 1,912 4,765 5,795
------------ ------------ ------------ ------------
TOTAL EXPENSES 436,225 284,686 1,643,118 1,322,902
Fees and Expenses Absorbed
by Investment Adviser 0 (92,602) 0 0
------------ ------------ ------------ ------------
NET EXPENSES 436,225 192,084 1,643,118 1,322,902
------------ ------------ ------------ ------------
NET INVESTMENT INCOME 25,009 109,769 3,341,839 323,666
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain (Loss)
on Investment securities (6,203,868) 2,656,875 1,700,355 (11,448,672)
Change in Net Appreciation (Depreciation)
of Investment Securities 4,016,411 370,909 5,042,065 (15,370,919)
------------ ------------ ------------ ------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES (2,187,457) 3,027,784 6,742,420 (26,819,591)
------------ ------------ ------------ ------------
Net Increase (Decrease)in Net
Assets from Operations $(2,162,448) $ 3,137,553 $10,084,259 $(26,495,925)
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios Inc.
Statement of Operations (Continued)
Six Months Ended April 30, 1995
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 1,365,585 $ 1,182,258 $ 836,299 $ 2,864,839
Interest 1,241,896 1,253,221 950,716 1,031,698
Foreign Taxes Withheld (1,162) (50,447) (8,916) (30,706)
------------ ------------ ------------ ------------
TOTAL INCOME 2,606,319 2,385,032 1,778,099 3,865,831
------------ ------------ ------------ ------------
EXPENSES
Investment Advisory Fees 1,915,662 997,224 1,285,363 468,483
Transfer Agent Fees 987,212 509,506 517,217 220,557
Administrative Fees 45,202 24,944 30,869 14,370
Custodian Fees and Expenses 14,164 12,549 8,263 7,821
Directors' Fees and Expenses 16,615 10,473 10,913 6,604
Professional Fees and Expenses 18,773 12,021 13,021 11,167
Registration Fees and Expenses 26,609 34,034 36,922 24,647
Reports to Shareholders 169,621 94,947 93,753 39,868
Other Expenses 7,147 5,032 5,088 3,695
------------ ------------ ------------ ------------
TOTAL EXPENSES 3,201,005 1,700,730 2,001,409 797,212
Fees and Expenses Absorbed
by Investment Adviser 0 0 0 (110,103)
------------ ------------ ------------ ------------
NET EXPENSES 3,201,005 1,700,730 2,001,409 687,109
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) (594,686) 684,302 (223,310) 3,178,722
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on
Investment securities 35,560,907 9,731,024 18,863,311 (6,493,613)
Change in Net Appreciation (Depreciation)
of Investment securities 36,481,662 (2,368,507) 28,796,192 4,721,533
------------ ------------ ------------ ------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES 72,042,569 7,362,517 47,659,503 (1,772,080)
------------ ------------ ------------ ------------
Net Increase in Net Assets
from Operations $71,447,883 $ 8,046,819 $47,436,193 $ 1,406,642
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc,
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Energy Environmental Services Financial Services
Portfolio Portfolio Portfolio
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30 October 31 April 30 October 31 April 30 October 31
1995 1994 1995 1994 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $25,009 $380,018 $109,769 $304,551 $3,341,839 $4,996,509
Net Realized Gain (Loss)
on Investment Securities (6,203,868) (2,933,404) 2,656,875 (5,715,283) 1,700,355 (3,719,894)
Change in Net Appreciation
(Depreciation) of
Investment Securities 4,016,411 160,686 370,909 1,289,039 5,042,065 (10,350,543)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS (2,162,448) (2,392,700) 3,137,553 (4,121,693) 10,084,259 (9,073,928)
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income 0 (407,884) 0 (286,754) (890,329) (5,006,924)
Net Realized Gain on
Investment Securities 0 0 0 0 0 (73,127,866)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS 0 (407,884) 0 (286,754) (890,329) (78,134,790)
----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from Sales
of Shares 138,483,242 291,316,361 44,526,239 122,333,738 161,839,511 288,299,448
Reinvestment of Distributions 0 393,156 0 277,875 863,809 75,367,321
----------- ----------- ----------- ----------- ----------- -----------
138,483,242 291,709,517 44,526,239 122,611,613 162,703,320 363,666,769
Amounts Paid for Repurchases
of Shares (124,710,499) (265,413,991) (36,843,106) (129,516,383) (179,685,622) (394,418,341)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS 13,772,743 26,295,526 7,683,133 (6,904,770) (16,982,302) (30,751,572)
----------- ----------- ----------- ----------- ----------- -----------
Total Increase (Decrease) in
Net Assets 11,610,295 23,494,942 10,820,686 (11,313,217) (7,788,372) (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 $85,377,036 $73,766,741 $40,096,802 $29,276,116 $258,382,126 $266,170,498
=========== =========== =========== =========== =========== ===========
<PAGE>
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets at
End of Period $ 24,198 $ (811) $ 127,566 $ 17,797 $ 2,468,498 $ 16,988
FUND SHARE TRANSACTIONS
Shares Sold 14,322,182 27,470,029 6,509,082 17,128,819 10,571,565 17,617,230
Shares Issued from Reinvestment
of Distributions 0 36,639 0 42,330 59,002 4,749,037
----------- ----------- ----------- ----------- ----------- -----------
14,322,182 27,506,668 6,509,082 17,171,149 10,630,567 22,366,267
Shares Repurchased (12,826,849) (25,019,680) (5,537,994) (18,633,805) (11,794,451) (23,922,813)
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in
Fund Shares 1,495,333 2,486,988 971,088 (1,462,656) (1,163,884) (1,556,546)
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Gold Health Sciences Leisure
Portfolio Portfolio Portfolio
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30 October 31 April 30 October 31 April 30 October 31
1995 1994 1995 1994 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $323,666 $(967,693) $(594,686) $(2,836,859) $684,302 $(508)
Net Realized Gain (Loss)
on lnvestment Securities (11,448,672) 8,517,563 35,560,907 40,050,629 9,731,024 10,797,683
Change in Net Appreciation
(Depreciation) of
Investment Securities (15,370,919) (41,068,325) 36,481,662 (12,078,412) (2,368,507) (24,811,080)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS (26,495,925) (33,518,455) 71,447,883 25,135,358 8,046,819 (14,013,905)
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM
NET REALIZED GAIN ON
INVESTMENTS SECURITIES 0 0 0 0 (10,878,315) (22,867,585)
----------- ----------- ----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 231,067,106 752,888,737 374,378,237 398,311,261 80,456,608 362,667,687
Reinvestment of Distributions 0 0 0 0 10,587,075 21,872,265
----------- ----------- ----------- ----------- ----------- -----------
231,067,106 752,888,737 374,378,237 398,311,261 91,043,683 384,539,952
Amounts Paid for Repurchases
of Shares (261,508,315) (741,146,972) (309,214,076) (509,815,509) (99,006,304) (416,694,388)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (30,441,209) 11,741,765 65,164,161 (111,504,248) (7,962,621) (32,154,436)
----------- ----------- ----------- ----------- ----------- -----------
Total Increase (Decrease) in
Net Assets (56,937,134) (21,776,690) 136,612,044 (86,368,890) (10,794,117) (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 $214,226,351 $271,163,485 $610,537,639 $473,925,595 $271,854,853 $282,648,970
=========== =========== =========== =========== =========== ===========
<PAGE>
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets at
End of Period $319,544 $(4,122) $(600,612) $(5,926) $680,917 $(3,385)
FUND SHARE TRANSACTlONS
Shares Sold 49,336,644 118,484,854 10,037,533 11,570,403 3,670,615 15,776,685
Shares Issued from Reinvestment
of Distributions 0 0 0 0 499,155 939,531
----------- ----------- ----------- ----------- ----------- -----------
49,336,644 118,484,854 10,037,533 11,570,403 4,169,770 16,716,216
Shares Repurchased (55,613,318) (117,776,474) (8,261,226) (14,792,894) (4,520,612) (18,034,630)
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in
Fund Shares (6,276,674) 708,380 1,776,307 (3,222,491) (350,842) (1,318,414)
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Technology Utilities
Portfolio Portfolio
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30 October 31 April 30 October 31
1995 1994 1995 1994
----------- ----------- ----------- -----------
UNAUDITED UNAUDITED
<S> <C> <C> <C> <C>
OPERATIONS
Net lnvestment lncome (Loss) $(223,310) $(1,425,727) $3,178,722 $4,964,152
Net Realized Gain (Loss) on
Investment securities 18,863,311 9,585,419 (6,493,613) (2,672,261)
Change in Net Appreciation
(Depreciation)of
Investment Secunties 28,796,192 4,159,966 4,721,533 (14,112,560)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 47,436,193 12,319,658 1,406,642 (11,820,669)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 0 (2,828,567) (3,719,456)
Net Realized Gain on
Investment Securities (10,002,788) (30,381,665) 0 (27,955,094)
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (10,002,788) (30,381,665) (2,828,567) (31,674,550)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTlONS
Proceeds from Sales of Shares 427,581,572 584,715,318 68,181,788 231,835,489
Reinvestment of Distributions 9,719,859 28,028,553 2,683,471 29,397,199
----------- ----------- ----------- -----------
437,301,431 612,743,871 70,865,259 261,232,688
Amounts Paid for Repurchases
of Shares (366,181,345) (516,224,883) (84,923,986) (259,896,844)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS 71,120,086 96,518,988 (14,058,727) 1,335,844
----------- ----------- ----------- -----------
Total Increase (Decrease)
in Net Assets 108,553,491 78,456,981 (15,480,652) (42,159,375)
NET ASSETS
Beginning of Period 327,259,996 248,803,015 139,578,659 181,738,034
----------- ----------- ----------- -----------
End of Period $435,813,487 $327,259,996 $124,098,007 $139,578,659
=========== =========== =========== ===========
<PAGE>
Accumulated Undistributed Net
Investment Income (Loss) Included
in Net Assets at End of Period $ (226,658) $ (3,348) $ 348,503 $ (1,652)
FUND SHARE TRANSACTIONS
Shares Sold 16,903,794 24,698,829 7,209,950 22,282,598
Shares Issued from Reinvestment
of Distributions 404,321 1,188,154 280,952 2,768,121
----------- ----------- ----------- -----------
17,308,115 25,886,983 7,490,902 25,050,719
Shares Repurchased (14,617,371) (21,983,488) (8,958,698) (24,951,611)
----------- ----------- ----------- -----------
Net Increase (Decrease)
in Fund Shares 2,690,744 3,903,495 (1,467,796) 99,108
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Notes to Financial Statements
UNAUDITED
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.
Values of foreign securities are determined as of the time that
trading of such securities is completed each day on the principal stock
exchange on which it is listed, generally at various times prior to the
close of the New York Stock Exchange or, for certain markets, quoted
prices are obtained prior to the close of those markets. 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, or at market
value if maturity is greater than 60 days.
B. 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.
C. 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 ex-dividend date. Interest
income, which may be comprised of stated coupon rate, market discount and
original issue discount is recorded on the accrual basis. Discounts on
debt securities purchased are amortized over the life of the respective
security as adjustments to interest income. Cost is determined on the
specific identification basis.
The Fund may have elements of risk due to concentrated investments
in 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 imposition of adverse foreign governmental laws or currency
exchange restrictions.
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
<PAGE>
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.
D. 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, 1994, net realized capital loss
carryovers and their expiration dates were as follows:
<TABLE>
<CAPTION>
Expires October 31
<S> <C> <C> <C> <C>
Portfolio 1999 2000 2001 2002
---------------------------------------------------------------------------------------------
Energy Portfolio $ 0 $ 1,121,598 $ 0 $ 2,986,299
Environmental Services Portfolio 415,580 1,757,613 4,564,835 5,676,149
Financial Services Portfolio 0 0 0 4,226,773
Gold Portfolio 0 4,766,360 0 0
Health Sciences Portfolio 0 0 12,666,165 0
Utilities Portfolio 0 0 0 2,578,763
</TABLE>
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.
Investment income received by each Portfolio from foreign sources
may be subject to foreign withholding taxes. Dividend income is shown
gross of foreign withholding taxes in the accompanying financial
statements.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions
to shareholders are recorded by the Fund on the ex-dividend/distribution
date. The Fund distributes net realized capital gains, if any, to its
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for market discounts, nontaxable dividends, net
operating losses, expiring capital loss carryforwards and deferral of wash
sales.
F. 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.
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% of 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.
<PAGE>
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 as of
July 1, 1994 and September 1, 1994, respectively.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended April 30, 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:
<TABLE>
<CAPTION>
Portfolio Purchases Sales
- ------------------------------------------------------------------------------
<S> <C> <C>
Energy Portfolio $ 77,299,098 $ 68,120,161
Environmental Services Portfolio 25,455,184 23,792,502
Financial Services Portfolio 192,379,318 181,266,790
Gold Portfolio 88,560,468 118,156,798
Health Sciences Portfolio 316,998,035 272,066,402
Leisure Portfolio 117,325,987 139,616,443
Technology Portfolio 313,590,478 334,249,109
Utilities Portfolio 113,566,552 126,108,309
</TABLE>
For the six months ended April 30, 1995, the aggregate cost of purchases
and proceeds from sales of U.S. Government securities for the Utilities
Portfolio were $15,780,278 and $13,690,391, respectively. There were no
purchases or sales of U.S. Government securities in any other Portfolios.
NOTE 4 - APPRECIATION AND DEPRECIATION. At April 30, 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:
<TABLE>
<CAPTION>
Net
Gross Gross Appreciation
Portfolio Appreciation Depreciation (Depreciation)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy Portfolio $ 6,072,953 $ 470,153 $ 5,602,800
Environmental Services Portfolio 3,404,068 649,332 2,754,736
Financial Services Portfolio 13,702,622 6,147,309 7,555,313
Gold Portfolio 23,833,604 43,524,961 (19,691,357)
Health Sciences Portfolio 101,691,676 30,988,105 70,703,571
Leisure Portfolio 26,547,217 9,612,915 16,934,302
Technology Portfolio 71,453,760 5,516,879 65,936,881
Utilities Portfolio 3,749,830 5,687,451 (1,937,621)
</TABLE>
NOTE 5 - TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of the
Fund's officers and directors are also officers and directors of IFG or ITC.
The Fund has adopted an unfunded noncontributory defined benefit pension
plan covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 25% of the retainer fee at
the time of retirement. Pension expenses for the six-months ended April 30,
1995, included in Directors' Fees and Expenses in the Statement of Operations
and prepaid pension costs and accrued pension liability included in prepaid
expenses and accrued expenses, respectively, in the Statement of Assets and
Liabilities were as follows:
<PAGE>
<TABLE>
<CAPTION>
Prepaid Accrued
Pension Pension Pension
Portfolio Expenses Costs Liability
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy Portfolio $ 406 $ 2,386 $ 2,792
Environmental Services Portfolio 186 1,095 1,281
Financial Services Portfolio 1,638 9,634 11,272
Gold Portfolio 2,061 12,126 14,187
Health Sciences Portfolio 2,963 17,432 20,395
Leisure Portfolio 1,693 9,958 11,651
Technology Portfolio 1,674 9,848 11,522
Utilities Portfolio 826 4,860 5,686
</TABLE>
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 six months ended April 30, 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 4/30/95
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Financial Services Portfolio
Regency Realty* -- -- -- -- -- $5,159,375
Gold Portfolio
Carson Gold -- -- 126,400 $387,549 $ (238,478) 786,836
Crown Resources -- -- -- -- -- 4,440,000
Francisco Gold -- -- -- -- -- 476,220
Golden Star Resources -- -- -- -- -- 10,631,250
Loki Gold -- -- -- -- -- 1,857,477
MK Gold -- -- -- -- -- 5,062,500
Orvana Minerals -- -- -- -- -- 4,578,472
Queenstake Resources -- -- 100,000 171,840 (80,220) 1,028,870
San Fernando Mining -- -- -- -- -- 1,093,541
Trillion Resources -- -- -- -- -- 1,850,658
Viceroy Resources -- -- -- -- -- 7,111,384
Health Sciences Portfolio
A L Pharma Class A* -- -- -- -- -- 23,875,000
Assisted Living
Concepts 250,000 2,312,500 -- -- -- 2,812,500
Cambridge Heart
Series A, Conv Pfd -- -- -- -- -- 1,200,000
CIMA Labs -- -- -- -- -- 2,071,872
Clarus Medical Systems
Series E, Conv Pfd -- -- -- -- -- 533,320
Crown Laboratories -- -- -- -- -- 1,654,922
Diametrics Medical -- -- -- -- -- 3,238,256
Ecogen Technologies 1 20 228,000 -- -- -- 1,320,000
Electroscope Inc -- -- -- -- -- 787,500
Emisphere Technologies -- -- -- -- _ 750,000
ImClone Systems -- -- 200,000 2,351,875 (2,230,676) 406,250
Ingenex Inc
Series B Pfd -- -- -- -- -- 600,000
Janus Biomedical
Series A, Conv Pfd -- -- -- -- -- 1,000,000
Landec Corp
Series D, Conv Pfd -- -- -- -- -- 1,500,001
Medical Associates
of America -- -- -- _ _ 1
Multum Information
Services Series C Pfd -- -- -- -- -- 1,000,001
<PAGE>
Oculon Corp Series 111
Sr Pfd -- -- -- -- -- 277,670
Salick Health Care -- -- 490,000 3,515,913 5,732,837 8,452,500
SciGenics Inc -- -- -- -- -- 1,812,500
Titan Pharmaceuticals
Series A Pfd -- -- -- -- -- 2,306,543
Unisyn Technologies
Series A, Conv Pfd 359,501 359,501 -- -- -- 359,501
Series E, Conv Pfd -- -- -- -- -- 31,132
Xenometrix Inc
Series B, Conv Pfd 266,667 400,001 -- -- -- 1,400,000
<FN>
* Dividend income in the amount of $128,375 and $90,000 was received from
Regency Realty and A L Pharma Class A, respectively, during the six-months ended
April 30, 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>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Energy Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $ 10.77 $ 11.53 $ 9.14 $ 11.28 $ 12.06 $ 11.68
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net lnvestment lncome 0.01 0.06 0.13 0.05 0.09 0.16
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.55) (0.76) 2.36 (2.17) (0.76) 0.33
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations (0.54) (0.70) 2.49 (2.12) (0.67) 0.49
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net lnvestment lncome 0.00 0.06 0.10 0.02 0.11 0.11
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value - End of Period $ 10.23 $ 10.77 $ 11.53 $ 9.14 $ 11.28 $ 12.06
========== ========== ========== ========== ========== ==========
TOTAL RETURN (5.01%)* (6.04%) 27.18% (18.74%) (5.55%) 4.18%
RATIOS
Net Assets - End of Period ($000 Omitted) $85,377 $73,767 $50,272 $17,048 $12,130 $19,476
Ratio of Expenses to Average Net Assets 0.76% * 1.35% 1.18% 1.73% 1.69% 1.42%
Ratio of Net Investment Income to
Average Net Assets 0.04% * 0.65% 0.86% 0.32% 0.83% 1.04%
Portfolio Turnover Rate 122% * 123% 190% 370% 337% 321%
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Financial Services Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $ 15.31 $ 20.28 $ 15.28 $ 14.67 $ 7.19 $ 9.05
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net lnvestment lncome (Loss) 0.21 0.29 0.24 0.20 0.10 (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.47 (0.66) 5.00 1.52 7.56 (1.82)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.68 (0.37) 5.24 1.72 7.66 (1.83)
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.06 0.29 0.24 0.20 0.08 0.01
Distributions from Capital Gains 0.00 4.31 0.00 0.91 0.10 0.02
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions 0.06 4.60 0.24 1.11 0.18 0.03
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value - End of Period $ 15.93 $ 15.31 $ 20.28 $ 15.28 $ 14.67 $ 7.19
========== ========== ========== ========== ========== ==========
TOTAL RETURN 4.44% * (2.24%) 34.33% 11.74% 106.63% (20.25%)
RATIOS
Net Assets - End of Period
($000 Omitted) $258,382 $266,170 $384,131 $189,708 $95,144 $1,315
Ratio of Expenses to Average Net Assets 0.65% * 1.18% 1.03% 1.07% 1.13% 2.50%
Ratio of Net Investment Income (Loss)
to Average Net Assets 1.33% * 1.66% 1.16% 1.28% 1.76% (0.16%)
Portfolio Turnover Rate 91% * 88% 236% 208% 249% 528%
<FN>
* These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Gold Portfolio#
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 5.68 $ 6.23 $ 3.99 $ 4.26 $ 4.29 $ 5.29
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.01 (0.02) (0.01) (0.01) (0.01) 0.01
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.53) (0.53) 2.25 (0.26) (0.02) (1.00)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations (0.52) (0.55) 2.24 (0.27) (0.03) (0.99)
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.00 0.00 0.00 0.00 0.01
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value--End of Period $ 5.16 $ 5.68 $ 6.23 $ 3.99 $ 4.26 $ 4.29
========== ========== ========== ========== ========== ==========
TOTAL RETURN (9.15%)* (8.83%) 56.27% (6.51%) (0.51%) (18.70%)
RATIOS
Net Assets--End of Period ($000 Omitted) $214,226 $271,163 $292,940 $46,212 $46,383 $35,757
Ratio of Expenses to Average Net Assets 0.65% * 1.07% 1.03% 1.41% 1.47% 1.32%
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.16% * (0.32%) (0.21%) (0.23%) (0.25%) 0.26%
Portfolio Turnover Rate 44% * 97% 142% 101% 43% 107%
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Health Sciences Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 35.09 $ 33.49 $ 35.65 $ 40.60 $ 20.61 $ 19.49
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net lnvestment lncome (Loss) (0.04) (0.24) (0.13) 0.11 0.14 0.21
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 4.90 1.84 (2.02) (4.52) 23.45 1.32
---------- ---------- ---------- ---------- ---------- ----------
Total from lnvestment Operations 4.86 1.60 (2.15) (4.41) 23.59 1.53
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net lnvestment lncome 0.00 0.00 0.01 0.10 0.12 0.20
Distributions from Capital Gains+ 0.00 0.00 0.00 0.44 3.48 0.21
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions 0.00 0.00 0.01 0.54 3.60 0.41
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value--End of Period $ 39.95 $ 35.09 $ 33.49 $ 35.65 $ 40.60 $ 20.61
========== ========== ========== ========== ========== ==========
TOTAL RETURN 13.85% * 4.78% (6.01%) (10.86%) 114.54% 7.85%
RATIOS
Net Assets--End of Period ($000 Omitted) $610,538 $473,926 $560,294 $756,791 $744,927 $88,150
Ratio of Expenses to Average Net Assets 0.59%* 1.19% 1.16% 1.00% 1.03% 1.12%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.11 %)* (0.57%) (0.34%) 0.26% 0.55% 1.18%
Portfolio Turnover Rate 55% * 80% 87% 91% 100% 242%
<FN>
# The per share information for Gold Portfolio for 1993 was computed based on
weighted average shares.
+ On October 31, 1993, Health Sciences Portfolio declared a Capital Gains
distribution which aggregated less than $0.01 on a per share basis.
* These amounts are based on operations for the period shown and,
accordingly, are not representative of a full year.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Leisure Portfolio#
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 22.63 $ 25.47 $ 16.29 $ 14.85 $ 10.14 $ 14.53
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.06 (0.01) (0.02) (0.01) (0.01) 0.01
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.62 (0.94) 9.20 2.44 6.84 (3.69)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.68 (0.95) 9.18 2.43 6.83 (3.68)
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.00 0.00 0.00 0.00 0.03
Distributions from Capital Gains 0.91 1.89 0.00 0.99 2.12 0.68
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions 0.91 1.89 0.00 0.99 2.12 0.71
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value--End of Period $ 22.40 $ 22.63 $ 25.47 $ 16.29 $ 14.85 $ 10.14
========== ========== ========== ========== ========== ==========
TOTAL RETURN 3.24% * (3.92%) 56.36% 16.34% 67.40% (25.33%)
RATIOS
Net Assets--End of Period ($000 Omitted) $271,855 $282,649 $351,685 $40,140 $14,406 $5,064
Ratio of Expenses to Average Net Assets 0.63% * 1.17% 1.14% 1.51% 1.86% 1.84%
Ratio of Net lnvestment lncome (Loss)
to Average Net Assets 0.26% * 0.00% (0.11%) (0.33%) (0.24%) 0.10%
Portfolio Turnover Rate 52% * 116% 116% 148% 122% 89%
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Technology Portfolio#
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 24.94 $ 26.99 $ 20.20 $ 18.10 $ 11.61 $ 12.66
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.02) (0.02) (0.15) (0.09) (0.09) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.43 1.19 6.94 2.19 10.97 (1.04)
---------- ---------- ---------- ---------- ---------- ----------
Total from lnvestment Operations 3.41 1.17 6.79 2.10 10.88 (1.05)
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from Capital Gains 0.79 3.22 0.00 0.00 4.39 0.00
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value--End of Period $ 27.56 $ 24.94 $ 26.99 $ 20.20 $ 18.10 $ 11.61
========== ========== ========== ========== ========== ==========
TOTAL RETURN 14.15% * 5.04% 33.63% 11.57% 93.73% (8.28%)
RATIOS
Net Assets--End of Period ($000 Omitted) $435,813 $327,260 $248,803 $ 165,083 $63,119 $20,190
Ratio of Expenses to Average Net Assets 0.58% * 1.17% 1.13% 1.12% 1.19% 1.25%
Ratio of Net Investment Loss to
Average Net Assets (0.06%)* (0.55%) (0.69%) (0.45%) (0.53%) (0.06%)
Portfolio Turnover Rate 100% * 145% 184% 169% 307% 345%
<FN>
# The per share information for Leisure Portfolio for 1993, and for Technology
Portfolio for 1992, 1991 and 1990 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.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
---------- ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1992 1991 1990
UNAUDITED
Utilities Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--Beginning of Period $ 9.76 $ 12.80 $ 10.10 $ 9.95 $ 8.35 $ 9.39
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.24 0.33 0.29 0.27 0.39 0.32
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.12) (1.12) 2.71 0.92 1.58 (1.04)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.12 (0.79) 3.00 1.19 1.97 (0.72)
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.21 0.25 0.30 0.26 0.37 0.32
Distributions from Capital Gains 0.00 2.00 0.00 0.78 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions 0.21 2.25 0.30 1.04 0.37 0.32
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value--End of Period $ 9.67 $ 9.76 $ 12.80 $ 10.10 $ 9.95 $ 8.35
========== ========== ========== ========== ========== ==========
TOTAL RETURN 1.27% * (7.22%) 29.88% 12.04% 23.98% (7.82%)
RATIOS
Net Assets--End of Period ($000 Omitted) $124,098 $139,579 $181,738 $107,561 $69,267 $30,730
Ratio of Expenses to Average Net Assets# 0.55%* 1.13% 1.06% 1.13% 1.21% 1.26%
Ratio of Net Investment Income to
Average Net Assets# 2.52% * 3.33% 2.66% 2.73% 4.19% 3.48%
Portfolio Turnover Rate 113% * 180% 202% 226% 151% 264%
<FN>
* 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 six
months ended April 30, 1995 and for the year ended October 31, 1994. If such
expenses had not been voluntarily absorbed, ratio of expenses to average net
assets would have been 0.63%, (not annualized) and 1.14%, respectively, and
ratio of net investment income to average net assets would have been 2.44%, (not
annualized) and 3.32%, respectively.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
April 30 Year Ended October 31October 31
---------- ---------- ---------- ---------- -----------
1995 1994 1993 1992 1991^
UNAUDITED
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) 0.02 0.06 (0.02) (0.04) (0.07)
Net Gains or (Losses) on securities
(Both Realized and Unrealized) 0.81 (0.30) (0.72) (1.39) 1.04
---------- ---------- ---------- ---------- -----------
Total from Investment Operations 0.83 (0.24) (0.74) (1.43) 0.97
---------- ---------- ---------- ---------- -----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.06 0.00 0.00 0.00
---------- ---------- ---------- ---------- -----------
Net Asset Value--End of Period $ 7.33 $ 6.50 $ 6.80 $ 7.54 $ 8.97
========== ========== ========== ========== ===========
TOTAL RETURN 12.77% * (3.51%) (9.85%) (15.90%) 12.11% *
RATIOS
Net Assets--End of Period ($000 Omitted) $40,097 $29,276 $40,589 $17,685 $8,001
Ratio of Expenses to Average Net Assets# 0.74% * 1.29% 1.62% 1.85% 2.50% **
Ratio of Net Investment Income (Loss)
to Average Net Assets# 0.43% * 0.61% (0.40%) (1.23%) (1.81%)**
Portfolio Turnover Rate 131% * 211% 155% 113% 69% *
<FN>
^ From January 2, 1991, commencement of operations, to October 31, 1991.
~ The per share information 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 six
months ended April 30, 1995 and for the year ended October 31, 1994. If such
expenses had not been voluntarily absorbed, ratio of expenses to average net
assets would have been 1.10%, (not annualized) and 1.43%, respectively, and
ratio of net investment income to average net assets would have been 0.07%, (not
annualized) and 0.47%, respectively.
** Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
International
Latin American Growth 34 IVSLX LatinAmGr
European Small Company 37 * *
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
Emerging Growth 60 FIEGX Emgrth
Small Company 74 * *
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
- -----------------------------------------------------------------------------
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
- -----------------------------------------------------------------------------
Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
- -----------------------------------------------------------------------------
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
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
<FN>
*This fund does not meet size requirements to be assigned a ticker symbol or
appear in newspaper listings.
</FN>
</TABLE>
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO 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, your 24-hour Personal Account
Line, call: 1-800-424-8085
Or write to:
INVESCO Funds Group, Inc., Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied by an effective prospectus.
