INVESCO STRATEGIC
PORTFOLIOS, INC.
Supplement to Prospectus
dated February 28, 1995
The section of the Fund's Prospectus entitled "The Fund and Its Management" is
amended to delete the fourth paragraph of the section and add the following new
paragraphs in its place:
Energy Portfolio
Thomas R. Samuelson, portfolio manager of the Energy Portfolio since 1995;
portfolio manager of INVESCO Trust Company; formerly, associate director of
Swiss Bank Capital Markets (1992 to 1995); partner of Duff & Phelps, Inc.
(1985 to 1992); M.B.A., University of Tulsa; B.S., University of Tulsa;
Chartered Financial Analyst.
Gold and Technology Portfolios
Daniel B. Leonard, portfolio manager of the Gold Portfolio since 1989 and the
Technology Portfolio since 1985; senior vice president (1991 to present) and
vice president (1977 to 1983) of INVESCO Trust Company; formerly, senior vice
president (1977 to 1983; 1985 to 1991) and portfolio manager (1975 to 1983;
1985 to 1991) of INVESCO Funds Group, Inc.; B.A., Washington & Lee
University.
The date of this Supplement is April 28, 1995.
<PAGE>
PROSPECTUS
February 28, 1995
INVESCO STRATEGIC PORTFOLIOS, INC.
No-load mutual funds seeking capital appreciation
through investment in designated market sectors
INVESCO STRATEGIC PORTFOLIOS, INC. (the "Fund") is an open-end management
investment company consisting of eight separate portfolios, each of which
represents a separate portfolio of investments. Each Portfolio concentrates its
investments in securities of companies principally engaged in the sector of
business activity designated for investment by that portfolio. A separate
prospectus is available upon request from INVESCO Funds Group, Inc. for the
Utilities Portfolio. This Prospectus relates to shares of the following seven
portfolios (the "Portfolios"):
ENERGY Portfolio HEALTH SCIENCES Portfolio
ENVIRONMENTAL SERVICES Portfolio LEISURE Portfolio
FINANCIAL SERVICES Portfolio TECHNOLOGY Portfolio
GOLD Portfolio
Additional portfolios may be offered in the future.
This Prospectus provides you with the basic information you should know
before investing in any of the Portfolios described herein. You should read it
and keep it for future reference. A Statement of Additional Information
containing further information about the Fund has been filed with the Securities
and Exchange Commission. You can obtain a copy without charge by writing INVESCO
Funds Group, Inc., Post Office Box 173706, Denver, Colorado 80217-3706; or by
calling 1-800-525-8085.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY BANK OR OTHER FINANCIAL INSTITUTION. THE SHARES OF
THE FUND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
----------
THE STATEMENT OF ADDITIONAL INFORMATION, DATED FEBRUARY 28, 1995, IS HEREBY
INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.
<PAGE>
TABLE OF CONTENTS
Page
ANNUAL FUND EXPENSES 6
FINANCIAL HIGHLIGHTS 9
PERFORMANCE DATA 10
INVESTMENT OBJECTIVE AND POLICIES 11
RISK FACTORS 18
THE FUND AND ITS MANAGEMENT 21
HOW SHARES CAN BE PURCHASED 25
SERVICES PROVIDED BY THE FUND 27
HOW TO REDEEM SHARES 31
DIVIDENDS, CAPITAL GAIN AND TAXES 32
<PAGE>
ANNUAL FUND EXPENSES
The Portfolios whose shares are offered through this Prospectus are the
Energy, Environmental Services, Financial Services, Gold, Health Sciences,
Leisure, and Technology Portfolios. These Portfolios are 100% no-load; there are
no fees to purchase, exchange or redeem shares, nor any ongoing marketing
("12b-1") expenses. Lower expenses benefit Fund shareholders by increasing the
Fund's total return.
Shareholder Transaction Expenses
Sales load "charge" on purchases None
Sales load "charge" on reinvested dividends None
Redemption fees None
Exchange fees None
Annual Fund Operating Expenses
(as a percentage of average net assets)
Energy Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses 0.79%
Transfer Agency Fee(1) 0.52%
General Services, Administrative
Services, Registration, Postage (2) 0.27%
Total Portfolio Operating Expenses 1.54%
Environmental Services Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses (after absorbed expenses)(3) 0.75%
Transfer Agency Fee(1) 0.59%
General Services, Administrative
Services, Registration, Postage (2) 0.16%
Total Portfolio Operating Expenses 1.50%
(after absorbed expenses)(3)
Financial Services Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses 0.57%
Transfer Agency Fee(1) 0.43%
General Services, Administrative
Services, Registration, Postage (2) 0.14%
Total Portfolio Operating Expenses 1.32%
<PAGE>
Gold Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses 0.40%
Transfer Agency Fee(1) 0.26%
General Services, Administrative
Services, Registration, Postage (2) 0.14%
Total Portfolio Operating Expenses 1.15%
Health Sciences Portfolio
Management Fee 0.72%
12b-1 Fees None
Other Expenses 0.61%
Transfer Agency Fee(1) 0.48%
General Services, Administrative
Services, Registration, Postage (2) 0.13%
Total Portfolio Operating Expenses 1.33%
Leisure Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses 0.51%
Transfer Agency Fee(1) 0.37%
General Services, Administrative
Services, Registration, Postage (2) 0.14%
Total Portfolio Operating Expenses 1.26%
Technology Portfolio
Management Fee 0.75%
12b-1 Fees None
Other Expenses 0.52%
Transfer Agency Fee(1) 0.38%
General Services, Administrative
Services, Registration, Postage (2) 0.14%
Total Portfolio Operating Expenses 1.27%
(1) Assumes that the current transfer agency fee had been in effect
during the entire fiscal year ended October 31, 1994. This fee is described
under "Additional Information - Transfer and Dividend Disbursing Agent."
(2) Includes, but is not limited to, fees and expenses of directors,
custodian bank, legal counsel and independent accountants, a securities pricing
service, costs of administrative services furnished under an Administrative
Services Agreement, costs of registration of Fund shares under applicable laws,
and costs of printing and distributing reports to shareholders.
<PAGE>
(3) Certain expenses of the Environmental Services Portfolio are being
absorbed voluntarily by INVESCO Funds Group, Inc. to ensure that expenses for
the Portfolio will not exceed 1.50% of the Portfolio's average net assets. In
the absence of such voluntary expense limitation, the Portfolio's "Other
Expenses" and "Total Portfolio Operating Expenses" in the above table would have
been .87% and 1.62%, respectively, of the Portfolio's average net assets, based
on the actual expenses for the fiscal year ended October 31, 1994.
Example
A shareholder would pay the following expenses on a $1,000 investment for
the periods shown, assuming (1) a 5% annual return and (2) redemption at the end
of each time period:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Energy Portfolio $16 $49 $85 $185
Environmental Services
Portfolio 15 48 82 180
Financial Services
Portfolio 14 42 73 160
Gold Portfolio 12 37 64 140
Health Sciences Portfolio 14 42 73 161
Leisure Portfolio 13 40 70 153
Technology Portfolio 13 41 70 154
The purpose of the foregoing table is to assist investors in understanding
the various costs and expenses that an investor in the Fund will bear directly
or indirectly. Such expenses are paid from the Fund's assets. (See "The Fund and
Its Management.") The Fund charges no sales load, redemption fee or exchange fee
and bears no distribution expenses. The Example should not be considered a
representation of past or future expenses, and actual expenses may be greater or
less than those shown. The assumed 5% annual return is hypothetical and should
not be considered a representation of past or future annual returns, which may
be greater or less than the assumed amount.
<PAGE>
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding throughout Each Period)
The following information has been audited by Price Waterhouse LLP,
independent accountants. This information should be read in conjunction with the
audited financial statements and the Report of Independent Accountants thereon
appearing in the Fund's 1994 annual report to shareholders and in the Statement
of Additional Information, both of which are available without charge by
contacting INVESCO INVESCO Strategic Portfolios, Inc. at the address or
telephone number shown on the cover of this Prospectus.
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Year Ended October 31
------------------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
Energy Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $11.53 $9.14 $11.28 $12.06 $11.68 $9.29 $8.22 $8.33 $8.29 $7.49
------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.06 0.13 0.05 0.09 0.16 0.20 0.11 0.11 0.14 0.15
Net Gains or (Losses) on
Securities(Both Realized
and Unrealized) (0.76) 2.36 (2.17) (0.76) 0.33 2.43 1.24 0.42 0.21 0.81
------------------------------------------------------------------------------------------------
Total from Investment
Operations (0.70) 2.49 (2.12) (0.67) 0.49 2.63 1.35 0.53 0.35 0.96
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.06 0.10 0.02 0.11 0.11 0.24 0.17 0.11 0.14 0.16
Distributions from
Capital Gains 0.00 0.00 0.00 0.00 0.00 0.00 0.11 0.53 0.17 0.00
------------------------------------------------------------------------------------------------
Total Distributions 0.06 0.10 0.02 0.11 0.11 0.24 0.28 0.64 0.31 0.16
------------------------------------------------------------------------------------------------
Net Asset Value -
End of Period $10.77 $11.53 $9.14 $11.28 $12.06 $11.68 $9.29 $8.22 $8.33 $8.29
================================================================================================
TOTAL RETURN (6.04%) 27.18% (18.74%) (5.55%) 4.18% 28.32% 16.77% 6.31% 4.19% 13.66%
RATIOS
Net Assets - End of Period
($000 Omitted) $73,767 $50,272 $17,048 $12,130 $19,476 $8,617 $5,831 $12,023 $1,693 $484
Ratio of Expenses to
Average Net Assets 1.35% 1.18% 1.73% 1.69% 1.42% 1.75% 1.90% 1.30% 1.50% 1.50%
Ratio of Net Investment
Income to Average
Net Assets 0.65% 0.86% 0.32% 0.83% 1.04% 1.73% 0.99% 1.32% 2.85% 2.34%
Portfolio Turnover Rate 123% 190% 370% 337% 321% 109% 177% 452% 629% 235%
INVESCO Strategic Portfolios, Inc.
<PAGE>
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Period
Ended
Year Ended October 31 October 31
--------------------------------------------------------------
1994~ 1993~ 1992 1991+
Environmental Services Portfolio
PER SHARE DATA
Net Asset Value - Beginning of Period $6.80 $7.54 $8.97 $8.00
--------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.06 (0.02) (0.04) (0.07)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.30) (0.72) (1.39) 1.04
--------------------------------------------------------------
Total from Investment Operations (0.24) (0.74) (1.43) 0.97
--------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.06 0.00 0.00 0.00
--------------------------------------------------------------
Net Asset Value - End of Period $6.50 $6.80 $7.54 $8.97
==============================================================
TOTAL RETURN (3.51%) (9.85%) (15.90%) 12.11%@
RATIOS
Net Assets - End of Period ($000 Omitted) $29,276 $40,589 $17,685 $8,001
Ratio of Expenses to Average Net Assets# 1.29% 1.62% 1.85% 2.50%*
Ratio of Net Investment Income (Loss)
to Average Net Assets# 0.61% (0.40%) (1.23%) (1.81%)*
Portfolio Turnover Rate 211% 155% 113% 69%@
<FN>
+ From January 2, 1991, commencement of operations, to October 31, 1991.
~ The per share information 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
year ended October 31, 1994. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.43% and ratio of net
investment income to average net assets would have been 0.47%.
* Annualized
</FN>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Period
Ended
October
Year Ended October 31 31
--------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986+
Financial Services Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $20.28 $15.28 $14.67 $7.19 $9.05 $7.55 $6.37 $7.74 $8.00
--------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss) 0.29 0.24 0.20 0.10 (0.01) 0.10 0.12 0.07 0.02
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) (0.66) 5.00 1.52 7.56 (1.82) 2.30 1.19 (1.26) (0.26)
--------------------------------------------------------------------------------------
Total from Investment
Operations (0.37) 5.24 1.72 7.66 (1.83) 2.40 1.31 (1.19) (0.24)
--------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.29 0.24 0.20 0.08 0.01 0.09 0.13 0.06 0.02
Distributions from
Capital Gains 4.31 0.00 0.91 0.10 0.02 0.81 0.00 0.12 0.00
--------------------------------------------------------------------------------------
Total Distributions 4.60 0.24 1.11 0.18 0.03 0.90 0.13 0.18 0.02
--------------------------------------------------------------------------------------
Net Asset Value -
End of Period $15.31 $20.28 $15.28 $14.67 $7.19 $9.05 $7.55 $6.37 $7.74
======================================================================================
TOTAL RETURN (2.24%) 34.33% 11.74% 106.63% (20.25%) 31.66% 20.69% (15.37%) (2.96%)@
RATIOS
Net Assets - End of Period
($000 Omitted) $266,170 $384,131 $189,708 $95,144 $1,315 $2,208 $2,322 $1,194 $543
Ratio of Expenses to
Average Net Assets 1.18% 1.03% 1.07% 1.13% 2.50% 2.50% 1.95% 1.50% 1.50%*
Ratio of Net Investment
Income (Loss) to Average
Net Assets 1.66% 1.16% 1.28% 1.76% (0.16%) 1.05% 1.71% 1.18% 1.15%*
Portfolio Turnover Rate 88% 236% 208% 249% 528% 217% 175% 284% 76%@
<FN>
+ From June 2, 1986, commencement of operations, to October 31, 1986.
@ These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
* Annualized
</FN>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Year Ended October 31
------------------------------------------------------------------------------------------------
1994 1993~ 1992 1991 1990 1989 1988 1987 1986 1985
Gold Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $6.23 $3.99 $4.26 $4.29 $5.29 $5.03 $5.60 $5.08 $3.99 $4.91
------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.02) (0.01) (0.01) (0.01) 0.01 0.03 0.03 0.06 0.08 0.10
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) (0.53) 2.25 (0.26) (0.02) (1.00) 0.28 (0.58) 0.57 1.13 (0.91)
------------------------------------------------------------------------------------------------
Total from Investment
Operations (0.55) 2.24 (0.27) (0.03) (0.99) 0.31 (0.55) 0.63 1.21 (0.81)
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.00 0.01 0.05 0.02 0.06 0.08 0.11
Distributions from
Capital Gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.04 0.00
------------------------------------------------------------------------------------------------
Total Distributions 0.00 0.00 0.00 0.00 0.01 0.05 0.02 0.11 0.12 0.11
------------------------------------------------------------------------------------------------
Net Asset Value -
End of Period $5.68 $6.23 $3.99 $4.26 $4.29 $5.29 $5.03 $5.60 $5.08 $3.99
================================================================================================
TOTAL RETURN (8.83%) 56.27% (6.51%) (0.51%) (18.70%) 6.13% (9.84%) 12.43% 30.30% (16.53%)
RATIOS
Net Assets - End of Period
($000 Omitted) $271,163 $292,940 $46,212 $46,383 $35,757 $34,255 $32,481 $37,853 $5,151 $2,356
Ratio of Expenses to
Average Net Assets 1.07% 1.03% 1.41% 1.47% 1.32% 1.63% 1.58% 1.15% 1.50% 1.50%
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.32%) (0.21%) (0.23%) (0.25%) 0.26% 0.69% 0.62% 0.98% 2.35% 2.72%
Portfolio Turnover Rate 97% 142% 101% 43% 107% 77% 47% 124% 232% 46%
<FN>
~ The per share information was computed based on weighted average shares.
</FN>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Year Ended October 31
------------------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
Health Sciences Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $33.49 $35.65 $40.60 $20.61 $19.49 $14.29 $11.69 $12.78 $9.75 $8.13
------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.24) (0.13) 0.11 0.14 0.21 0.15 (0.09) (0.01) (0.03) 0.01
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 1.84 (2.02) (4.52) 23.45 1.32 7.06 2.72 (0.18) 4.42 1.62
------------------------------------------------------------------------------------------------
Total from Investment
Operations 1.60 (2.15) (4.41) 23.59 1.53 7.21 2.63 (0.19) 4.39 1.63
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.01 0.10 0.12 0.20 0.06 0.00 0.00 0.00 0.01
Distributions from
Capital Gains+ 0.00 0.00 0.44 3.48 0.21 1.95 0.03 0.90 1.36 0.00
------------------------------------------------------------------------------------------------
Total Distributions 0.00 0.01 0.54 3.60 0.41 2.01 0.03 0.90 1.36 0.01
------------------------------------------------------------------------------------------------
Net Asset Value -
End of Period $35.09 $33.49 $35.65 $40.60 $20.61 $19.49 $14.29 $11.69 $12.78 $9.75
================================================================================================
TOTAL RETURN 4.78% (6.01%) (10.86%) 114.54% 7.85% 50.47% 22.56% (1.50%) 45.01% 20.03%
RATIOS
Net Assets - End of Period
($000 Omitted) $473,926 $560,294 $756,791 $744,927 $88,150 $26,765 $10,027 $10,405 $4,099 $1,363
Ratio of Expenses to
Average Net Assets 1.19% 1.16% 1.00% 1.03% 1.12% 1.42% 1.65% 1.42% 1.50% 1.50%
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.57%) (0.34%) 0.26% 0.55% 1.18% 0.79% (0.48%) (0.17%) (0.28%) 0.19%
Portfolio Turnover Rate 80% 87% 91% 100% 242% 272% 280% 364% 479% 203%
<FN>
+ On October 31, 1993, Health Sciences declared a Capital Gains distribution
which <%2>aggregated less that $0.01 on a per share basis.
</FN>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Year Ended October 31
------------------------------------------------------------------------------------------------
1994 1993~ 1992 1991 1990 1989 1988 1987 1986 1985
Leisure Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $25.47 $16.29 $14.85 $10.14 $14.53 $11.99 $9.00 $11.38 $10.03 $8.47
------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.01) (0.02) (0.01) (0.01) 0.01 0.22 0.04 (0.05) (0.01) 0.04
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) (0.94) 9.20 2.44 6.84 (3.69) 4.52 2.95 (0.90) 4.13 1.56
------------------------------------------------------------------------------------------------
Total from Investment
Operations (0.95) 9.18 2.43 6.83 (3.68) 4.74 2.99 (0.95) 4.12 1.60
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.00 0.03 0.21 0.00 0.00 0.00 0.04
Distributions from
Capital Gains 1.89 0.00 0.99 2.12 0.68 1.99 0.00 1.43 2.77 0.00
------------------------------------------------------------------------------------------------
Total Distributions 1.89 0.00 0.99 2.12 0.71 2.20 0.00 1.43 2.77 0.04
------------------------------------------------------------------------------------------------
Net Asset Value -
End of Period $22.63 $25.47 $16.29 $14.85 $10.14 $14.53 $11.99 $9.00 $11.38 $10.03
================================================================================================
TOTAL RETURN (3.92%) 56.36% 16.34% 67.40% (25.33%) 39.58% 33.21% (8.38%) 41.08% 18.90%
RATIOS
Net Assets - End of Period
($000 Omitted) $282,649 $351,685 $40,140 $14,406 $5,064 $12,569 $5,624 $2,721 $2,804 $1,209
Ratio of Expenses to
Average Net Assets 1.17% 1.14% 1.51% 1.86% 1.84% 1.38% 1.89% 1.50% 1.50% 1.50%
Ratio of Net Investment
Income (Loss) to
Average Net Assets 0.00% (0.11%) (0.33%) (0.24%) 0.10% 1.44% 0.16% (0.37%) (0.11%) 0.57%
Portfolio Turnover Rate 116% 116% 148% 122% 89% 119% 136% 376% 458% 160%
<FN>
~ The per share information was computed based on weighted average shares.
</FN>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Year Ended October 31
------------------------------------------------------------------------------------------------
1994 1993 1992~ 1991~ 1990~ 1989 1988 1987 1986 1985
Technology Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $26.99 $20.20 $18.10 $11.61 $12.66 $10.11 $8.49 $9.29 $7.59 $7.11
--------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.02) (0.15) (0.09) (0.09) (0.01) (0.29) (0.29) (0.11) (0.05) 0.00
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 1.19 6.94 2.19 10.97 (1.04) 2.84 1.91 (0.68) 2.82 0.48
------------------------------------------------------------------------------------------------
Total from Investment
Operations 1.17 6.79 2.10 10.88 (1.05) 2.55 1.62 (0.79) 2.77 0.48
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Distributions from
Capital Gains 3.22 0.00 0.00 4.39 0.00 0.00 0.00 0.01 1.07 0.00
------------------------------------------------------------------------------------------------
Net Asset Value -
End of Period $24.94 $26.99 $20.20 $18.10 $11.61 $12.66 $10.11 $8.49 $9.29 $7.59
================================================================================================
TOTAL RETURN 5.04% 33.63% 11.57% 93.73% (8.28%) 25.24% 19.02% (8.54%) 36.55% 6.71%
RATIOS
Net Assets - End of Period
($000 Omitted) $327,260 $248,803 $165,083 $63,119 $20,190 $8,525 $9,652 $9,289 $4,696 $2,543
Ratio of Expenses to
Average Net Assets 1.17% 1.13% 1.12% 1.19% 1.25% 1.59% 1.72% 1.47% 1.50% 1.50%
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.55%) (0.69%) (0.45%) (0.53%) (0.06%) (0.62%) (0.90%) (0.68%) (0.71%) 0.03%
Portfolio Turnover Rate 145% 184% 169% 307% 345% 259% 356%# 556% 368% 175%
<FN>
~ The per share information was computed based on weighted average shares.
# For the year ended October 31, 1988, the value of securities acquired in
connection with the acquisition of the net assets of World of Technology, Inc.
was excluded when computing the Portfolio turnover rate.
</FN>
</TABLE>
Further information about the performance of the Portfolios is contained
in the Fund's annual report to shareholders, which may be obtained without
charge by writing INVESCO Funds Group, Inc., P.O. Box 173706, Denver, Colorado
80217-3706; or by calling 1-800-525-8085.
<PAGE>
PERFORMANCE DATA
From time to time, the Portfolios advertise their total return
performance. Performance figures are based upon historical investment results
and are not intended to indicate future performance. The "total return" of a
Portfolio refers to the average annual rate of return of an investment in the
Portfolio. This figure is computed by calculating the percentage change in value
of an investment of $1,000, assuming reinvestment of all income dividends and
capital gain distributions, to the end of a specified period. Periods of one
year, five years and ten years (or the life of the Portfolio, whichever is
longer) are used.
Statements of the Portfolios' total return performance are based upon a
Portfolio's investment results during a specified period. Thus, any given report
of total return performance should not be considered as representative of future
performance. These Portfolios charge no sales load, redemption fee, or exchange
fee which would affect the total return computation.
In conjunction with performance reports and/or analyses of shareholder
service for the Portfolios, comparative data between the Fund's performance for
a given period and recognized indices of investment results for the same period,
and/or assessments of the quality of shareholder service, may be provided to
shareholders. Such indices include indices provided by Dow Jones & Company,
Standard & Poor's, Lipper Analytical Services, Inc., Lehman Brothers, National
Association of Securities Dealers Automated Quotations, Frank Russell Company,
Value Line Investment Survey, the American Stock Exchange, Morgan Stanley
Capital International, Wilshire Associates, the Financial Times--Stock Exchange,
the New York Stock Exchange, the Nikkei Stock Average and the Deutcher
Aktienindex, all of which are unmanaged market indicators. In addition,
rankings, ratings, and comparisons of investment performance and/or assessments
of the quality of shareholder service appearing in publications such as Money,
Forbes, Kiplinger's Personal Finance, Morningstar, and similar sources which
utilize information compiled (i) internally; (ii) by Lipper Analytical Services,
Inc.; or (iii) by other recognized analytical services, may be used in
advertising. The Lipper Analytical Services, Inc. mutual fund rankings and
comparisons, which may be used by the Fund's Portfolios in performance reports,
will be drawn from the following specific Lipper mutual fund groupings, in
addition to the broad-based Lipper general fund groupings:
Portfolio Lipper Mutual Fund Grouping
- -Energy Natural Resources Funds
- -Environmental Services Environmental Funds
- -Financial Services Financial Services Funds
- -Gold Gold Oriented Funds
- -Health Sciences Health/Biotechnology Funds
- -Leisure Specialty/Miscellaneous Funds
- -Technology Science & Technology Funds
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
The Fund consists of eight separate Portfolios of investments, each
represented by a different class of the Fund's common stock. This Prospectus
relates to the above seven Portfolios of the Fund; a separate Prospectus for the
Utilities Portfolio is available. The investment objective of each of the seven
Portfolios of the Fund offered through this Prospectus is to seek capital
appreciation. Each Portfolio invests primarily in securities of companies
principally engaged in the sector of business activity designated for investment
by that Portfolio, which may be either established, well-capitalized companies
or newly-formed, small-cap companies. Under normal conditions, each Portfolio
will invest at least 80% of its total assets in the equity securities (common
stocks and securities convertible into common stocks, including convertible debt
obligations and convertible preferred stock) of such companies traded on
regional or national stock exchanges or on the over-the-counter market. A
particular company will be deemed to be principally engaged in the field
designated for investment by a Portfolio if, in the determination of the
investment adviser or sub-adviser (collectively, "Fund Management") to that
Portfolio, more than 50% of its gross income or net sales is derived from
activities in such field or more than 50% of its assets are dedicated to the
production of revenues from such field. In circumstances where, based on
available financial information, a question exists whether a company meets one
of these standards, the Portfolio may invest in equity securities of such
company only if the investment adviser determines, after review of information
describing the company and its business activities, that the company's primary
business is within the field designated for investment by that Portfolio, as
such field is described below. Each of the Portfolios, except the Technology
Portfolio, will concentrate its investments (i.e., invest more than 25% of its
total assets) in the group of industries constituting the sector of business
activity designated for investment by that Portfolio in this Prospectus. Only
the Technology Portfolio may not invest more than 25% of its total assets in the
securities of issuers in any one industry within the sector of business activity
designated for investment by that Portfolio.
<PAGE>
The balance of each Portfolio's total assets may be held as cash or
invested in debt or equity securities issued by companies outside the investment
sector in which at least 80% of each Portfolio's total assets is invested, or in
short-term debt obligations maturing no later than one year from the date of
purchase, which are determined by each Portfolio's investment adviser or
sub-adviser to be of high grade, including U.S. government and agency
securities, domestic bank certificates of deposit, commercial paper rated A-2 or
higher by Standard & Poor's Ratings Group or P-2 or higher by Moody's Investors
Services, Inc., and repurchase agreements with banks and securities dealers.
Such equity securities may be issued by either established, well-capitalized
companies or newly-formed, small-cap companies, and may be traded on national or
regional stock exchanges or in the over-the-counter market. In addition, a
Portfolio may hold cash or invest temporarily in the short-term securities
described above in an amount exceeding 20% of its total assets as a temporary
defensive measure if its investment adviser or sub-adviser determines it to be
appropriate for purposes of enhancing liquidity or preserving capital in light
of prevailing market or economic conditions. While a Portfolio is in a defensive
position, the opportunity to achieve capital growth will be limited and, to the
extent that this assessment of market conditions is incorrect, the Portfolio
will be foregoing the opportunity to benefit from capital growth resulting from
increases in the value of equity investments.
The investment objective of a Portfolio and its investment policies as
described above and supplemented below are deemed to be fundamental policies and
thus may not be changed without prior approval by the holders of a majority of
the outstanding voting securities of such Portfolio, as defined in the
Investment Company Act of 1940. In addition, a Portfolio is subject to certain
investment restrictions which are set forth in the Statement of Additional
Information and which may not be altered without approval of the Portfolio's
shareholders. One of those restrictions limits each Portfolio's borrowing of
money to borrowings from banks for temporary or emergency purposes (but not for
investment) in an amount not to exceed 10% of net assets.
Foreign Securities
The Gold and Environmental Services Portfolios may invest in foreign
securities without limitation on the percentage of assets which may be so
invested. Each of the other Portfolios (Energy, Financial Services, Health
Sciences, Leisure and Technology) may invest up to 25% of its total assets,
measured at the time of purchase, directly in foreign securities. Securities of
Canadian issuers and securities purchased by means of American Depository
Receipts ("ADRs") are not subject to this 25% limitation. ADRs are receipts,
typically issued by a U.S. bank or trust company, evidencing ownership of the
underlying foreign securities. ADRs are denominated in U.S. dollars and trade in
the U.S. securities markets. Investments in foreign securities involve certain
risks which are discussed below under "Risk Factors."
<PAGE>
Repurchase Agreements
Investments in short-term securities may include repurchase agreements.
The Portfolios may enter into repurchase agreements with respect to debt
instruments eligible for investment by the Portfolios. These agreements are
entered into with member banks of the Federal Reserve System, registered
broker-dealers, and registered government securities dealers, which are deemed
creditworthy. A repurchase agreement is a means of investing monies for a short
period. In a repurchase agreement, which may be considered a loan under the
Investment Company Act of 1940, a Portfolio acquires a debt instrument
(generally a security issued by the U.S. government or an agency thereof, a
banker's acceptance, or a certificate of deposit) subject to resale to the
seller at an agreed upon price and date (normally, the next business day). In
the event that the original seller defaults on its obligation to repurchase the
security, a Portfolio could incur costs or delays in seeking to sell such
security. To minimize risk, the securities underlying each repurchase agreement
will be maintained with the Fund's custodian in an amount at least equal to the
repurchase price under the agreement (including accrued interest), and such
agreements will be effected only with parties that meet certain creditworthiness
standards established by the Fund's board of directors. A Portfolio will not
enter into a repurchase agreement maturing in more than seven days if as a
result more than 10% of its net assets would be invested in such repurchase
agreements and other illiquid securities. The Fund has not adopted any limit on
the amount of its net assets that may be invested in repurchase agreements
maturing in seven days or less.
Securities Lending
The Portfolios also may lend their securities to qualified brokers,
dealers, banks, or other financial institutions. This practice permits the
Portfolios to earn income, which, in turn, can be invested in additional
securities of the type described in this prospectus in pursuit of the
Portfolios' investment objectives. Loans of securities by the Portfolios will be
collateralized by cash, letters of credit, or securities issued or guaranteed by
the U.S. government or its agencies equal to at least 100% of the current market
value of the loaned securities, determined on a daily basis. Lending securities
involves certain risks, the most significant of which is the risk that a
borrower may fail to return a portfolio security. The Portfolios monitor the
creditworthiness of borrowers in order to minimize such risks. The Portfolios
will not lend any security if, as a result of such loan, the aggregate value of
securities then on loan would exceed 33-1/3% of a Portfolio's net assets (taken
at market value).
A shareholder may invest in one or more of the following Portfolios:
<PAGE>
ENERGY Portfolio
The assets of the Energy Portfolio are invested primarily in the equity
securities of companies principally engaged in energy industries. These include
companies engaged in the exploration for, or development, production or
distribution of, known sources of energy such as oil, natural gas, coal,
uranium, geothermal or solar or nuclear power, as well as those which
participate in the exploration for and development of new sources of energy;
companies which provide transportation, distribution, or processing services
such as refining and pipeline services or provide related services or supplies
such as drilling, well servicing, chemicals, or parts and equipment; and
companies which engage in research or development of energy-efficient
technologies such as systems for energy conversion, conservation, and pollution
control. The Portfolio may invest in equity securities of large,
well-capitalized companies in the energy field, as well as in comparatively
small companies, the equity securities of which are traded in the
over-the-counter market. The market prices of securities of companies in the
energy sector may be adversely affected by the imposition by federal or state
governmental authorities of additional requirements or changes in regulations
governing energy production, distribution and sale.
ENVIRONMENTAL SERVICES Portfolio
The assets of the Environmental Services Portfolio are invested primarily
in the equity securities of companies principally engaged in the waste
management, pollution control and similar industries offering products and
services related to environmental concerns in the United States and foreign
countries. In determining whether a company is deemed to be principally engaged
in the field of environmental services, the Portfolio's investment adviser or
sub-adviser applies the test set forth in the first paragraph of this section.
Included within the industries in which the Portfolio may invest are companies
involved in such environmental service-related areas as solid and hazardous
waste treatment and disposal, remedial services, asbestos abatement, groundwater
and underground storage tank decontamination, industrial tank cleaning,
landfills, recycling, air filtration and monitoring, leak detection, waterway
cleanups, pollution reduction projects and systems, environmental insurance and
surety bonding, incineration, acid rain, nuclear waste handling and reduction,
medical waste disposal, waste-to-energy, the production of safety and protection
equipment for environmental workers, waste transportation, alternative energy,
specialty environmental services, and the production of biodegradable or
otherwise environmentally safe products and technologies related to pollution
control.
<PAGE>
FINANCIAL SERVICES Portfolio
The assets of the Financial Services Portfolio are invested primarily in
the equity securities of companies principally engaged in industries involving
financial services. Such companies include commercial and industrial banks,
savings and loan associations, consumer and industrial finance companies,
leasing companies, securities brokerage companies, and various kinds of
insurance companies.
Banks, savings and loan associations, finance companies, and insurance
companies are subject to extensive governmental regulation, which may undergo
frequent changes. The profitability of these businesses is largely dependent
upon the availability and cost of capital funds and may fluctuate significantly
in response to volatility in interest rate levels, as well as to changes in
general economic conditions. From time to time, severe competition may also
affect the profitability of insurance companies.
GOLD Portfolio
The assets of the Gold Portfolio are invested primarily in the equity
securities of companies which are principally engaged in the industries of
mining, exploring, processing, or dealing or investing in gold. Because such
companies are frequently located outside of the United States, all or a portion
of the Gold Portfolio's assets may be invested in the equity securities of
foreign companies. Many of the securities of foreign companies in which the Gold
Portfolio invests are traded in the United States. When not traded in the United
States, such securities typically will be listed on the principal stock exchange
in the foreign country where traded. See "Risk Factors" for a discussion of the
risks associated with such securities.
The market prices of securities of companies in which the Gold Portfolio
will primarily invest are likely to be affected by the price of gold. Investors
should be aware, in this regard, that in recent years the price of gold has been
subject to substantial price fluctuations and may be affected by unpredictable
international monetary and political policies such as currency devaluations or
revaluations, economic conditions within an individual country, trade
imbalances, or trade or currency restrictions between countries. Moreover, the
two largest producers of gold bullion are the Republic of South Africa and the
Commonwealth of Independent States (the former Soviet Union). Changes in
political and economic conditions affecting either country or its government may
have direct impact on that country's sale of gold, which in turn could affect
the price of gold. Due to the foregoing factors, the value of an investment in
the Gold Portfolio may increase or decrease rapidly over relatively short
periods of time.
<PAGE>
In addition to investing, under normal conditions, at least 80% of its
total assets in the equity securities of companies in the gold industries listed
above, the Gold Portfolio may invest up to 10% of its remaining total assets in
gold bullion. Unlike investments, such as savings deposits and stocks and bonds,
which may produce interest or dividend income, gold bullion earns no income
return. Appreciation in the market price of gold is the sole manner in which the
Gold Portfolio will be able to realize gains on its investment in gold bullion.
Furthermore, the Gold Portfolio may encounter storage and transaction costs in
connection with its ownership of gold bullion which may be higher than those
attendant to the purchase, holding and disposition of more traditional types of
investments. The price of gold bullion has been subject to dramatic downward and
upward price movements over short periods of time and may be affected by
unpredictable international monetary and political policies, such as currency
devaluations or revaluations, economic conditions within an individual country,
trade imbalances, or trade or currency restrictions between countries. The
investment adviser or sub-adviser of the Gold Portfolio intends to purchase gold
bullion only in a form that is readily marketable, and also intends that the
bullion will be delivered to and stored with a qualified U.S. bank.
HEALTH SCIENCES Portfolio
The assets of the Health Sciences Portfolio are invested primarily in the
equity securities of companies principally engaged in the development,
production, or distribution of products or services related to the health
sciences. The health sciences sector includes the following industries: the
manufacture or sale of medical equipment or supplies; pharmaceuticals; the
operation of health care facilities, including hospitals, clinical test
laboratories, and convalescent care facilities; and applied research and
development of new products or processes related to health sciences.
A significant portion of the activities of companies engaged in the health
sciences sector are funded or subsidized by the federal government and state
governments. Discontinuance of such subsidies could adversely affect the
profitability of such companies. Moreover, many health sciences companies are
subject to government regulation over their products and services. As a result,
the profitability of health sciences companies may be influenced to a greater
degree than other sectors of the economy by governmental policy and regulation.
In addition, in view of the continuing scientific and technological advances
being made in the health sciences field, investors should be aware that many of
the products and services offered by health sciences companies may be subject to
risk of rapid obsolescence. This means that the value of an investment in the
Health Sciences Portfolio may fluctuate significantly over relatively short
periods of time.
<PAGE>
LEISURE Portfolio
The assets of the Leisure Portfolio are invested primarily in the equity
securities of companies principally engaged in the design, production, or
distribution of products or services related to the leisure-time activities of
individuals. Companies in leisure industries include those engaged in the
design, production, or distribution of sporting goods, recreational equipment,
toys, games (including video and other electronic games), photographic equipment
and supplies, musical instruments, and recordings; motion picture and
broadcasting companies (including cable television companies); companies engaged
in furnishing domestic and foreign transportation by air; companies engaged in
operating hotels or motels, sports arenas, gambling casinos, amusement or theme
parks, or restaurants. Since these companies may derive a significant portion of
their revenues from the discretionary spending of individuals, they may be
adversely affected by economic downturns which reduce the amount of personal
income available for non-essential items. Securities of companies engaged in
operating gambling casinos may be subject to above-average price volatility and
may be considered speculative. In addition, many of the products offered by
companies engaged in the design, production, or distribution of video and
electronic games are subject to risks of rapid obsolescence. Therefore, the
market prices of securities of such companies may be subject to significant
fluctuations in value.
TECHNOLOGY Portfolio
The assets of the Technology Portfolio are invested primarily in the
equity securities of companies principally engaged in the field of technology.
In determining whether a company is deemed to be principally engaged in the
field of technology, the Portfolio's investment adviser or sub-adviser applies
the test set forth in the first paragraph of this section. Included within the
range of companies in which the Portfolio may invest are those engaged in such
technology-related industries as computers, communications, video, electronics,
oceanography, office and factory automation, and robotics. Many of the products
offered by technology companies are subject to risks of rapid obsolescence.
Therefore, the market prices of securities of such companies may be subject to
significant fluctuations in value.
RISK FACTORS
Investors should consider the special factors associated with the policies
discussed below in determining the appropriateness of an investment in one of
the Fund's Portfolios. The Fund's policies regarding investments in foreign
securities and foreign currencies are not fundamental and may be changed by vote
of the Fund's board of directors.
<PAGE>
Foreign Securities
For U.S. investors, the returns on foreign securities are influenced not
only by the returns on the foreign investments themselves, but also by currency
risk (i.e., changes in the value of the currencies in which the securities are
denominated relative to the U.S. dollar). In a period when the U.S. dollar
generally rises against foreign currencies, the returns on foreign securities
for a U.S. investor are diminished. By contrast, in a period when the U.S.
dollar generally declines, the returns on foreign securities generally are
enhanced.
Other risks and considerations of international investing include the
following: differences in accounting, auditing and financial reporting standards
which may result in less publicly available information than is generally
available with respect to U.S. issuers; generally higher commission rates on
foreign portfolio transactions and longer settlement periods; the smaller
trading volumes and generally lower liquidity of foreign stock markets, which
may result in greater price volatility; foreign withholding taxes payable on a
Portfolio's foreign securities, which may reduce dividend income payable to
shareholders; the possibility of expropriation or confiscatory taxation; adverse
changes in investment or exchange control regulations; political instability
which could affect U.S. investment in foreign countries; potential restrictions
on the flow of international capital; and the possibility of the Fund
experiencing difficulties in pursuing legal remedies and collecting judgments.
Certain of these risks, as well as currency risks, also apply to Canadian
securities, which are not (with the exception of the Gold and Environmental
Services Portfolios) subject to the Portfolio's 25% of total assets limitation
on investing directly in foreign equity securities. The Portfolios' investments
in foreign securities may include investments in developing countries. Many of
these securities are speculative and their prices may be more volatile than
those of securities issued by companies located in more developed countries.
Securities purchased by means of ADRs also are not subject to the 25%
limitation. ADRs are receipts, typically issued by a U.S. bank or trust company,
evidencing ownership of the underlying foreign securities. ADRs are denominated
in U.S. dollars and trade in the U.S. securities markets. ADRs may be issued in
sponsored or unsponsored programs. In sponsored programs, the issuer makes
arrangements to have its securities traded in the form of ADRs; in unsponsored
programs, the issuer may not be directly involved in the creation of the
program. Although the regulatory requirements with respect to sponsored and
unsponsored programs are generally similar, the issuers of unsponsored ADRs are
not obligated to disclose material information in the United States and,
therefore, such information may not be reflected in the market value of the
ADRs. ADRs are subject to certain of the same risks as direct investments in
foreign securities, including the risk that changes in the value of the currency
in which the security underlying an ADR is denominated relative to the U.S.
dollar may adversely affect the value of the ADR.
<PAGE>
Forward Foreign Currency Contracts
The Portfolios may enter into contracts to purchase or sell foreign
currencies at a future date ("forward contracts") as a hedge against
fluctuations in foreign exchange rates pending the settlement of transactions in
foreign securities or during the time a Portfolio holds foreign securities. A
forward contract is an agreement between contracting parties to exchange an
amount of currency at some future time at an agreed upon rate. Although the
Portfolios have not adopted any limitations on their ability to use forward
contracts as a hedge against fluctuation in foreign exchange rates, they do not
attempt to hedge all of their foreign investment positions, and will enter into
forward contracts only to the extent, if any, deemed appropriate by their
investment adviser. The Portfolios will not enter into a forward contract for a
term of more than one year or for purposes of speculation. Investors should be
aware that hedging against a decline in the value of a currency in the foregoing
manner does not eliminate fluctuations in the prices of portfolio securities or
prevent losses if the prices of such securities decline. Furthermore, such
hedging transactions preclude the opportunity for gain if the value of the
hedged currency should rise. If a Portfolio enters into a "position hedging
transaction," which is the sale of a forward foreign currency contract with
respect to a portfolio security denominated in such foreign currency, its
custodian bank will place cash or liquid equity or debt securities, which may be
denominated either in U.S. dollars or a foreign currency, in a segregated
account of the Portfolio in an amount at least equal to the value of the total
assets of the Portfolio committed to the consummation of such forward contract.
If the value of the securities placed in the account declines, additional cash
or securities will be placed in the account so that the value of the account
will at least equal the amount of the Portfolio's commitment with respect to
such contracts. No predictions can be made with respect to whether the total of
such transactions will result in a better or a worse position than had the
Portfolio not entered into any forward contracts. Forward contracts and the
securities placed in a segregated account may, from time to time, be considered
illiquid, in which case they would be subject to the Portfolios' limitation on
investing in illiquid securities, discussed below. For additional information
regarding forward contracts, see the Fund's Statement of Additional Information.
Environmental Regulation. Investment in the Environmental Services
Portfolio will involve some specific risks. The environmental services industry
has generally been positively influenced by legislation which has resulted in
stricter government regulations and enforcement policies for both commercial and
governmental generators of waste materials, as well as specific expenditures
designated for remedial cleanup efforts. Companies in the environmental services
field are also affected by regulation by various federal and state authorities,
including the federal Environmental Protection Agency and its state agency
counterparts. As regulations are developed and enforced, such companies may be
required to alter or cease production of a product or service or to agree to
restrictions on their operations. In addition, since the materials handled and
processes involved include hazardous components, there is significant liability
risk. There are also risks of intense competition within the industry.
<PAGE>
Industry Concentration. While the Fund as a whole and each Portfolio
diversify their investments by investing not more than 5% of their total assets
in the securities of any one issuer, the investment adviser or sub-adviser for
each Portfolio will normally invest each Portfolio's assets primarily in
companies engaged in a particular sector of business activity. As a result of
this investment policy, an investment in a particular Portfolio may be subject
to greater fluctuations in value than would generally be the case if an
investment were made in an investment company which did not concentrate its
investments in a similar manner. For example, certain economic factors or
specific events may exert a disproportionate impact upon the prices of equity
securities of companies within a particular industry relative to their impact on
the prices of securities of companies engaged in other industries. Additionally,
changes in the market price of the equity securities of a particular company
which occupies a dominant position in an industry may tend to influence the
market prices of other companies within the same industry. As a result of the
foregoing factors, the net asset values of the Portfolios may be more
susceptible to change than those of investment companies which spread their
investments over many different industries. Accordingly, an investment in one or
more of the Portfolios may not constitute a complete, balanced investment
program.
Illiquid and Rule 144A Securities
The Portfolios are authorized to invest in securities which are illiquid
because they are subject to restrictions on their resale ("restricted
securities") or because, based upon their nature or the market for such
securities, they are not readily marketable. However, a Portfolio will not
purchase any such security if the purchase would cause the Portfolio to invest
more than 10% of its total assets, measured at the time of purchase, in illiquid
securities. Repurchase agreements maturing in more than seven days will be
considered as illiquid for purposes of this restriction. Investments in illiquid
securities involve certain risks to the extent that the Portfolios may be unable
to dispose of such securities at the time desired or at a reasonable price. In
addition, in order to resell a restricted security, a Portfolio might have to
bear the expense and incur the delays associated with effecting a registration.
The securities that may be purchased subject to the foregoing limitation
include restricted securities that are not registered for sale to the general
public, but that can be resold to institutional investors ("Rule 144A
Securities"). The liquidity of the Portfolios' investments in Rule 144A
Securities could be impaired if dealers or institutional investors become
uninterested in purchasing these securities. The Funds' board of directors has
delegated to the adviser the authority to determine the liquidity of Rule 144A
Securities pursuant to guidelines approved by the board. For more information
concerning Rule 144A Securities, see the Statement of Additional Information.
<PAGE>
Portfolio Turnover
There are no fixed limitations regarding portfolio turnover. Although the
Portfolios do not trade for short-term profits, securities may be sold without
regard to the time they have been held in a Portfolio when, in the opinion of
Fund Management, investment considerations warrant such action. In addition,
portfolio turnover rates may increase as a result of large amounts of purchases
or redemptions of Portfolio shares due to economic, market or other factors that
are not within the control of Fund Management. As a result, under certain market
conditions, the portfolio turnover rate for a particular Portfolio may exceed
100%, and may be higher than that of other investment companies seeking capital
appreciation. Increased portfolio turnover would cause a Portfolio to incur
greater brokerage costs than would otherwise be the case, and may result in the
acceleration of capital gains which are taxable when distributed to
shareholders. The Portfolio's portfolio turnover rates are set forth under
"Financial Highlights" and, along with the Fund's brokerage allocation policies,
are discussed in the Statement of Additional Information.
THE FUND AND ITS MANAGEMENT
The Fund is a no-load mutual fund, registered with the Securities and
Exchange Commission as an open-end, diversified management investment company.
It was incorporated on August 10, 1983, under the laws of Maryland as "Financial
Strategic Portfolios, Inc." The name "INVESCO Strategic Portfolios, Inc." was
adopted as a trade name for the Fund in April 1993. On December 2, 1994 the Fund
amended its Articles of Incorporation to change its name to INVESCO Strategic
Portfolios, Inc. The overall supervision of the Fund is the responsibility of
its board of directors.
Pursuant to an agreement with the Fund, INVESCO Funds Group, Inc.
("INVESCO"), 7800 E. Union Avenue, Denver, Colorado, serves as investment
adviser to all of the Fund's eight Portfolios. INVESCO is primarily responsible
for providing the Fund with various administrative services, and supervising the
Fund's daily business affairs. These services are subject to review by the
Fund's board of directors.
The following individuals serve as portfolio managers for the Portfolios
and are primarily responsible for the day-to-day management of the Portfolios'
securities:
<PAGE>
Energy, Gold and Technology Portfolios
Daniel B. Leonard Portfolio manager of the Portfolio since 1994, the Gold
Portfolio since 1989 and the Technology Portfolio since 1985; senior vice
president (1991 to present), and vice president (1977 to 1983) of INVESCO Trust
Company; formerly, senior vice president (1977 to 1983; 1985 to 1991) and
portfolio manager (1975 to 1983; 1985 to 1991) of INVESCO Funds Group, Inc.;
B.A., Washington & Lee University.
Environmental Services Portfolio
John Schroer Portfolio manager of the Portfolio since 1993; co-portfolio
manager of the Health Sciences Portfolio; vice president (since 1995) and
portfolio manager (1993 to present) of INVESCO Trust Company. Formerly (1990 to
1993), assistant vice president with Trust Company of the West; began investment
career in 1990; B.S. and M.B.A., University of Wisconsin-Madison.
Financial Services Portfolio
Douglas N. Pratt, C.F.A. Portfolio manager of the Portfolio since 1992;
portfolio manager of INVESCO Emerging Growth Fund; U.S. liaison for INVESCO
Pacific Basin Fund; vice president (1993 to present) and portfolio manager (1992
to present) of INVESCO Trust Company. Formerly (1987 to 1992) equity analyst
with Loomis, Sayles & Company; began financial and analytical research career in
1982; A.B., Brown University; M.B.A., Columbia University; Chartered Financial
Analyst.
Health Sciences Portfolio
Barry Kurokawa Co-portfolio manager of the Portfolio since 1992; vice
president (1992 to present) and portfolio manager (1994 to present) of The
Global Health Sciences Fund; senior vice president (1994 to present), vice
president (1993 to 1994) and portfolio manager (1992 to present) of INVESCO
Trust Company. Formerly (1987 to 1992), security analyst with Trust Company of
the West; B.S., Cal State University; M.B.A., Loyola Marymount University.
John Schroer Co-portfolio manager of the Portfolio since 1994; portfolio
manager of the Environmental Services Portfolio; vice president (since 1995) and
portfolio manager (1993 to present) of INVESCO Trust Company. Formerly (1990 to
1993), assistant vice president with Trust Company of the West; began investment
career in 1990; B.S. and M.B.A., University of Wisconsin-Madison.
Leisure Portfolio
Timothy J. Miller, C.F.A.Portfolio manager of the Portfolio since 1992;
portfolio manager of INVESCO Dynamics Fund; vice president (1993 to present) and
portfolio manager (1992 to present) of INVESCO Trust Company. Formerly (1979 to
1992), analyst and portfolio manager with Mississippi Valley Advisors. B.S.B.A.,
St. Louis University; M.B.A., University of Missouri; Chartered Financial
Analyst.
<PAGE>
INVESCO is an indirect wholly-owned subsidiary of INVESCO PLC. INVESCO PLC
is a financial holding company which, through its subsidiaries, engages in the
business of investment management on an international basis. INVESCO was
established in 1932 and, as of October 31, 1994, managed fourteen mutual funds,
consisting of 36 portfolios, with combined assets of approximately $9.8 billion
on behalf of over 849,000 shareholders.
Pursuant to an agreement with INVESCO, INVESCO Trust Company ("INVESCO
Trust"), 7800 E. Union Avenue, Denver, Colorado, serves as the sub-adviser to
the Fund's eight Portfolios. INVESCO Trust, a trust company founded in 1969, is
a wholly-owned subsidiary of INVESCO that served as adviser or sub-adviser to 33
investment portfolios as of October 31, 1994, including 27 open-end mutual fund
portfolios in the INVESCO group and a closed-end investment company. These 33
portfolios had aggregate assets of approximately $8.7 billion as of October 31,
1994 In addition, INVESCO Trust provides investment management services to
private clients, including employee benefit plans that may be invested in a
collective trust sponsored by INVESCO Trust. INVESCO Trust, subject to the
supervision of INVESCO, is primarily responsible for selecting and managing the
Fund's investments. Although the Fund is not a party to the sub-advisory
agreement, the agreement has been approved by the shareholders of the Fund.
The Fund pays INVESCO a monthly advisory fee for each Portfolio which is
based upon a percentage of the average net assets of the Portfolio, determined
daily. The fee is computed at the annual rate of 0.75% on the first $350 million
of the average net assets of a Portfolio; 0.65% on the next $350 million of a
Portfolio's average net assets; and 0.55% on the average net assets of a
Portfolio in excess of $700 million. For the fiscal year ended October 31, 1994,
the Portfolios paid fees equal to the following percentages of their average net
assets: Energy, Gold, Leisure, Technology, Financial Services and Environmental
Services Portfolios, 0.75%, and Health Sciences Portfolio, 0.72%. While the
portions of these advisory fee rates which are equal to 0.75% of each
Portfolio's average net assets are higher than those generally charged by most
other investment advisers to mutual funds, they are not higher than those
charged by a great many other investment advisers to funds comparable to the
Portfolios, whose assets are primarily invested in securities of companies
principally engaged in the sector of business activity designated for investment
by each Portfolio.
Out of the advisory fees which it receives from the Fund, INVESCO pays
INVESCO Trust, as sub-adviser to the Portfolios, a monthly fee with respect to
each Portfolio, which is computed at the annual rate of 0.25% on the first $200
million of each Portfolio's average net assets; and 0.20% of each Portfolio's
average net assets in excess of $200 million. No fee is paid by any of the
Portfolios of the Fund to INVESCO Trust.
<PAGE>
The Fund also has entered into an Administrative Services Agreement dated
April 30, 1993 (the "Administrative Agreement") with INVESCO. Pursuant to the
Administrative Agreement, INVESCO performs certain administrative, recordkeeping
and internal sub-accounting services, including without limitation, maintaining
general ledger and capital stock accounts, preparing a daily trial balance,
calculating net asset value daily, providing selected general ledger reports and
providing sub-accounting and recordkeeping services for shareholder accounts in
the Portfolios maintained by certain retirement and employee benefit plans for
the benefit of participants in such plans. For such services, the Fund pays
INVESCO a fee consisting of a base fee of $10,000 per year, per Portfolio, plus
an additional incremental fee computed at the annual rate of 0.015% per year of
the average net assets of the Portfolio. INVESCO also is paid a fee by the Fund
for providing transfer agent services. See "Additional Information."
Each Portfolio's expenses, which are accrued daily, are generally deducted
from its total income before dividends are paid. Total expenses of the
Portfolios, including investment advisory fees (but excluding brokerage
commissions, which are a cost of acquiring securities), as a percentage of their
average net assets for the fiscal year ended October 31, 1994, were as follows:
Energy, 1.35%; Environmental Services, 1.29%; Financial Services, 1.18%; Gold,
1.07%; Health Sciences, 1.19%; Leisure, 1.17%; Technology, 1.17%. In the absence
of the voluntary expense limitation which took effect July 1, 1994, the total
expenses of the Environmental Services Portfolio would have been 1.43% of the
Portfolio's average net assets. Certain Portfolio expenses are being absorbed
voluntarily by INVESCO in order to ensure that the Portfolio's total annual
operating expenses will not exceed 1.50% of the Portfolio's average net assets.
INVESCO, as the Fund's investment adviser, or INVESCO Trust, as the
Portfolios' sub-adviser, places orders for the purchase and sale of portfolio
securities with brokers and dealers based upon INVESCO's evaluation of their
financial responsibility coupled with their ability to effect transactions at
the best available prices. Although the Fund does not market its shares through
intermediary brokers or dealers, the Fund may place orders for portfolio
transactions with qualified broker-dealers which recommend the Fund to clients,
or act as agent in the purchase of Fund shares for clients, if management of the
Fund believes that the quality of execution of the transaction and level of
commission are comparable to those available from other qualified brokerage
firms.
<PAGE>
HOW SHARES CAN BE PURCHASED
Shares of each Portfolio are sold on a continuous basis by INVESCO, as the
Fund's Distributor, at the net asset value per share next calculated after
receipt of a purchase order in good form. No sales charge is imposed upon the
sale of shares of a Portfolio of the Fund. To purchase shares of one or more
Portfolios of the Fund, send a check made payable to INVESCO Funds Group, Inc.,
together with a completed application form, to:
INVESCO FUNDS GROUP, INC.
Post Office Box 173706
Denver, Colorado 80217-3706
Purchase orders must specify the Portfolio or Portfolios in which the
investment is to be made.
The minimum initial purchase must be at least $1,000, with subsequent
investments of not less than $50, except that: (1) those shareholders
establishing an EasiVest or direct payroll purchase account, as described below
in the Prospectus section entitled "Services Provided by the Fund," may open an
account without making any initial investment if they agree to make regular,
minimum purchases of at least $50; (2) Fund management may permit a lesser
amount to be invested in the Portfolios under a federal income tax-sheltered
retirement plan (other than an IRA Account), or under a group investment plan
qualifying as a sophisticated investor; (3) those shareholders investing in an
Individual Retirement Account (IRA), or through omnibus accounts where
individual shareholder recordkeeping and sub-accounting are not required, may
make initial minimum purchases of $250; and (4) Fund management reserves the
right to reduce or waive the minimum purchase requirements in its sole
discretion where it determines such action is in the best interests of the Fund.
The minimum initial purchase requirement of $1,000, as described above, does not
apply to shareholder account(s) in any of the INVESCO funds opened prior to
January 1, 1993, and, thus, is not a minimum balance requirement for those
existing accounts. However, for shareholders already having accounts in any of
the INVESCO funds, all initial share purchases in a new fund account, including
those made using the exchange privilege, must meet the fund's applicable minimum
investment requirement.
The purchase of Portfolio shares can be expedited by placing bank wire,
overnight courier, or telephone orders. Overnight courier orders must meet the
above minimum investment requirements. In no case can a bank wire order or a
telephone order be in an amount less than $1,000. For further information, the
purchaser may call the Fund's office by using the telephone number on the cover
of this Prospectus. Orders sent by overnight courier, including Express Mail,
should be sent to the street address, not Post Office Box, of INVESCO Funds
Group, Inc., at 7800 E. Union Avenue, Denver, CO 80237.
<PAGE>
Orders to purchase shares of any of the Portfolios can be placed by
telephone. Shares will be issued at the net asset value next determined after
receipt of telephone instructions. Payments for telephone orders must be
received by the Fund within seven business days or the transaction will be
cancelled. Beginning in June 1995, this period will be reduced to five business
days. In the event of such cancellation, the purchaser will be held responsible
for any loss resulting from a decline in the value of the shares. INVESCO has
agreed to indemnify the Fund for any losses resulting from such cancellations.
If your check does not clear, or if a telephone purchase must be cancelled
due to non-payment, you will be responsible for any related loss the Fund or
INVESCO incurs. If you are already a shareholder in the INVESCO funds, the Fund,
on behalf of the Portfolios, has the option to redeem shares from any
identically registered account in the Fund or any other INVESCO fund as
reimbursement for any loss incurred. You also may be prohibited or restricted
from making future purchases in any of the INVESCO funds.
Persons who invest in any of the Portfolios of the Fund through a
securities broker may be charged a commission or transaction fee for the
handling of the transaction, if the broker so elects. Any investor may deal
directly with the Fund in any transaction. In that event, there is no such
charge.
The Fund reserves the right in its sole discretion to reject any order for
purchase of its shares (including purchases by exchange) when, in the judgment
of management, such rejection is in the best interest of the Fund or the
Portfolios.
Net asset value per share is computed once each day that the New York
Stock Exchange is open as of the close of regular trading on that Exchange
(generally 4:00 p.m., New York time) and also may be computed on other days
under certain circumstances. Net asset value per share for each Portfolio is
calculated by dividing the market value of all of the Portfolio's securities
plus the value of its other assets (including dividends and interest accrued but
not collected), less all liabilities (including accrued expenses), by the number
of outstanding shares of that Portfolio. If market quotations are not readily
available, a security or other asset will be valued at fair value as determined
in good faith by the board of directors. Debt securities with remaining
maturities of 60 days or less at the time of purchase will be valued at
amortized cost, absent unusual circumstances, so long as the Fund's board of
directors believes that such value represents fair value. Values of gold bullion
held by the Gold Portfolio are based upon daily quotes provided by banks or
brokers dealing in such commodities.
<PAGE>
SERVICES PROVIDED BY THE FUND
Shareholder Accounts. INVESCO maintains a share account that reflects the
current holdings of each shareholder. A separate account will be maintained for
a shareholder for each Portfolio in which the shareholder invests. Share
certificates will be issued only upon specific request. Since certificates must
be carefully safeguarded, and must be surrendered in order to exchange or redeem
Portfolio shares, most shareholders do not request share certificates in order
to facilitate such transactions. Each shareholder is sent a detailed
confirmation for each transaction in shares of the Fund. Shareholders whose only
transactions are through the EasiVest, direct payroll purchase, automatic
monthly exchange or periodic withdrawal programs, or are reinvestments of
dividends or capital gains in the same or another fund, will receive
confirmations of those transactions on their quarterly statements. These
programs are discussed below. For information regarding a shareholder's account
and transactions, the shareholder may call the Fund's office by using the
telephone number on the cover of this Prospectus.
Reinvestment of Distributions. Income dividends and capital gain
distributions are automatically reinvested in additional shares of the Portfolio
making the distribution at the net asset value per share of that Portfolio in
effect on the ex-dividend date. A shareholder may, however, elect to reinvest
dividends and capital gain distributions in certain of the other no-load mutual
funds advised and distributed by INVESCO, or to receive payment of all dividends
and distributions in excess of $10.00 by check by giving written notice to
INVESCO at least two weeks prior to the ex-dividend date on which the change is
to take effect. Further information concerning these options can be obtained by
contacting INVESCO.
Periodic Withdrawal Plan. A Periodic Withdrawal Plan is available to
shareholders who own or purchase shares of any mutual funds advised by INVESCO
having a total value of $10,000 or more; provided, however, that at the time the
Plan is established, the shareholder owns shares having a value of at least
$5,000 in the fund from which withdrawals will be made. Under the Periodic
Withdrawal Plan, INVESCO, as agent, will make specified monthly or quarterly
payments of any amount selected (minimum payment of $100) to the party
designated by the shareholder. Notice of all changes concerning the Periodic
Withdrawal Plan must be received by INVESCO at least two weeks prior to the next
scheduled check. Further information regarding the Periodic Withdrawal Plan and
its requirements and tax consequences can be obtained by contacting INVESCO.
Exchange Privilege. Shares of any of the Portfolios may be exchanged for
shares of any other Portfolio of the Fund, as well as for shares of any of the
following other no-load mutual funds, which are also advised and distributed by
INVESCO, on the basis of their respective net asset values at the time of the
exchange: INVESCO Diversified Funds, Inc., INVESCO Dynamics Fund, Inc., INVESCO
Emerging Opportunity Funds, Inc., INVESCO Growth Fund, Inc., INVESCO Income
Funds, Inc., INVESCO Industrial Income Fund, Inc., INVESCO International Funds,
Inc., INVESCO Money Market Funds, Inc., INVESCO Multiple Asset Funds, Inc.,
INVESCO Specialty Funds, Inc., INVESCO Tax-Free Income Funds, Inc., and INVESCO
Value Trust.
<PAGE>
An exchange involves redemption of shares in a Portfolio of the Fund and
investment of the redemption proceeds in shares of another Portfolio of the Fund
or in one of the funds listed above. Exchanges will be made at the net asset
value per share next determined after receipt of an exchange request in proper
order. Any gain or loss realized on an exchange is recognizable for federal
income tax purposes by the shareholder. Exchange requests may be made either by
telephone or by written request to INVESCO, using the telephone number or
address on the cover of this Prospectus. Exchanges made by telephone must be in
an amount of at least $250, if the exchange is being made into an existing
account of one of the INVESCO funds. All exchanges that establish a new account
must meet the Fund's applicable minimum initial investment requirements. Written
exchange requests into an existing account have no minimum requirements other
than the Fund's applicable minimum subsequent investment requirements.
The privilege of exchanging Portfolio shares by telephone is available to
shareholders automatically unless expressly declined. By signing the new account
Application, a Telephone Transaction Authorization Form or otherwise utilizing
telephone exchange privileges, the investor has agreed that the Fund will not be
liable for following instructions communicated by telephone that it reasonably
believes to be genuine. The Fund employs procedures, which it believes are
reasonable, designed to confirm that exchange instructions are genuine. These
may include recording telephone instructions and providing written confirmations
of exchange transactions. As a result of this policy, the investor may bear the
risk of any loss due to unauthorized or fraudulent instructions; provided,
however, that if the Fund fails to follow these or other reasonable procedures,
the Fund may be liable.
In order to prevent abuse of this privilege to the disadvantage of other
shareholders, the Fund reserves the right to terminate the exchange privilege of
any shareholder who requests more than four exchanges a year. The Fund will
determine whether to do so based on a consideration of both the number of
exchanges any particular shareholder, or group of shareholders, has requested
and the time period over which those exchange requests have been made, together
with the level of expense to the Fund which will result from effecting
additional exchange requests. The exchange privilege also may be modified or
terminated at any time. Except for those limited instances where redemptions of
the exchanged security are suspended under Section 22(e) of the Investment
Company Act of 1940, or where sales of the fund into which the shareholder is
exchanging are temporarily stopped, notice of all such modifications or
termination of the exchange privilege will be given at least 60 days prior to
the date of termination or the effective date of the modification.
<PAGE>
Before making an exchange, the shareholder should review the prospectuses
of the Portfolios or funds involved and consider their differences, and should
be aware that the exchange privilege may only be available in those states where
exchanges may legally be made, which will require that the shares being acquired
are registered for sale in the shareholder's state of residence. Shareholders
interested in exercising the exchange privilege may contact INVESCO for
information concerning their particular exchanges.
Automatic Monthly Exchange. Shareholders who have accounts in any one or
more of the mutual funds distributed by INVESCO may arrange for a fixed dollar
amount of their fund shares to be automatically exchanged for shares of any
other INVESCO mutual fund listed under "Exchange Privilege" on a monthly basis.
The minimum monthly exchange in this program is $50.00. This automatic exchange
program can be changed by the shareholder at any time by notifying INVESCO at
least two weeks prior to the date the change is to be made. Further information
regarding this service can be obtained by contacting INVESCO.
EasiVest. For shareholders who want to maintain a schedule of monthly
investments, EasiVest uses various methods to draw a preauthorized amount from
the shareholder's bank account to purchase Portfolio shares. This automatic
investment program can be changed by the shareholder at any time by writing to
INVESCO at least two weeks prior to the date the change is to be made. Further
information regarding this service can be obtained by contacting INVESCO.
Direct Payroll Purchase. Shareholders may elect to have their employers
make automatic purchases of Portfolio shares for them by deducting a specified
amount from their regular paychecks. This automatic investment program can be
modified or terminated at any time by the shareholder, by notifying the
employer. Further information regarding this service can be obtained by
contacting INVESCO.
Tax-Sheltered Retirement Plans. Shares of any of the Portfolios of the
Fund may be purchased for self-employed retirement plans, individual retirement
accounts (IRAs), simplified employee pension plans, and corporate retirement
plans. In addition, shares can be used to fund tax qualified plans established
under Section 403(b) of the Internal Revenue Code by educational institutions,
including public school systems and private schools, and certain kinds of
non-profit organizations, which provide deferred compensation arrangements for
their employees.
Prototype forms for the establishment of these various plans, including,
where applicable, disclosure statements required by the Internal Revenue
Service, are available from INVESCO. INVESCO Trust, a subsidiary of INVESCO, is
qualified to serve as trustee or custodian under these plans and provides the
required services at competitive rates. Retirement plans (other than IRAs)
receive monthly statements reflecting all transactions in their Fund accounts.
IRAs receive the confirmations and quarterly statements described under
"Shareholder Accounts." For complete information, including prototype forms and
service charges, call INVESCO at the telephone number listed on the cover of
this Prospectus or send a written request to: Retirement Services, INVESCO Funds
Group, Inc., Post Office Box 173706, Denver, Colorado 80217-3706.
<PAGE>
HOW TO REDEEM SHARES
Shares of each of the Portfolios may be redeemed at any time at their
current net asset value next determined after a request in proper form is
received at the Fund's office. (See "How Shares Can Be Purchased.") Net asset
value per share at the time of the redemption may be more or less than the price
you paid to purchase your shares, depending primarily upon the Portfolio's
investment performance.
If the shares to be redeemed are represented by stock certificates, a
written request for redemption signed by the registered shareholder(s) and the
certificates must be forwarded to INVESCO Funds Group, Inc., Post Office Box
173706, Denver, Colorado 80217-3706. Redemption requests sent by overnight
courier, including Express Mail, should be sent to the street address, not Post
Office Box, of INVESCO Funds Group, Inc. at 7800 E. Union Avenue, Denver, CO
80237. If no certificates have been issued, a written redemption request signed
by each registered owner of the account may be submitted to INVESCO at the
address noted above. If shares are held in the name of a corporation, additional
documentation may be necessary. Call or write for specifics. If payment for the
redeemed shares is to be made to someone other than the registered owner(s), the
signature(s) must be guaranteed by a financial institution which qualifies as an
eligible guarantor institution. Redemption procedures with respect to accounts
registered in the names of broker-dealers may differ from those applicable to
other shareholders.
Be careful to specify the account from which the redemption is to be made.
Shareholders have a separate account for each Portfolio in which they invest.
Payments of redemption proceeds will be mailed within seven days following
receipt of the required documents. However, payment may be postponed under
unusual circumstances, such as when normal trading is not taking place on the
New York Stock Exchange, an emergency as defined by the Securities and Exchange
Commission exists, or the shares to be redeemed were purchased by check and that
check has not yet cleared; provided, however, that all redemption proceeds will
be paid out promptly upon clearance of the purchase check (which may take up to
15 days).
Because of the high relative costs of handling small accounts, should the
value of any shareholder's account fall below $250 as a result of shareholder
action, the Fund reserves the right to effect the involuntary redemption of all
shares in such account, in which case the account would be liquidated and the
proceeds forwarded to the shareholder. Prior to any such redemption, a
shareholder will be notified and given 60 days to increase the value of the
account to $250 or more.
<PAGE>
Fund shareholders (other than shareholders holding Portfolio shares in
accounts of IRA plans) may request expedited redemption of shares having a
minimum value of $250 (or redemption of all shares if their value is less than
$250), held in accounts maintained in their name by telephoning redemption
instructions to INVESCO, using the telephone number on the cover of this
Prospectus. The redemption proceeds, at the shareholder's option, either will be
mailed to the address listed for the shareholder's Portfolio account, or wired
(minimum of $1,000) or mailed to the bank which the shareholder has designated
to receive the proceeds of telephone redemptions. The Fund charges no fee for
effecting such telephone redemptions. Unless the Fund's Management permits a
larger redemption request to be placed by telephone, a shareholder may not place
a redemption request by telephone in excess of $25,000. These telephone
redemption privileges may be modified or terminated in the future at the
discretion of the Fund's management. For INVESCO Trust sponsored federal income
tax-sheltered retirement plans, the term "shareholders" is defined to mean plan
trustees that file a written request to be able to redeem Portfolio shares by
telephone. Shareholders should understand that, while the Fund will attempt to
process all telephone redemption requests on an expedited basis, there may be
times, particularly in periods of severe economic or market disruption, when (a)
they may encounter difficulty in placing a telephone redemption request, and (b)
processing telephone redemptions may require up to seven days following receipt
of the redemption request, or additional time because of the unusual
circumstances set forth above.
The privilege of redeeming Fund shares by telephone is available to
shareholders automatically unless expressly declined. By signing a new account
Application, a Telephone Transaction Authorization Form or otherwise utilizing
telephone redemption privileges, the shareholder has agreed that the Fund will
not be liable for following instructions communicated by telephone that it
reasonably believes to be genuine. The Fund employs procedures, which it
believes are reasonable, designed to confirm that telephone instructions are
genuine. These may include recording telephone instructions and providing
written confirmation of transactions initiated by telephone. As a result of this
policy, the investor may bear the risk of any loss due to unauthorized or
fraudulent instructions; provided, however, that if a Portfolio fails to follow
these or other reasonable procedures, the Portfolio may be liable.
<PAGE>
DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS, AND TAXES
Dividends. In addition to any increase in the value of your shares which
may occur from increases in the values of a Portfolio's investments, each
Portfolio may earn income in the form of dividends and interest on its
investments. Dividends paid by a Portfolio will be based solely on the income
earned by that Portfolio. The Fund's policy with respect to each of the
Portfolios is to distribute substantially all of this income, less expenses, to
shareholders in the Portfolio, on an annual basis at the discretion of the
Fund's board of directors. Dividends are automatically reinvested in additional
shares of the Portfolio making the dividend distribution at the net asset value
on the ex-dividend date, unless otherwise requested. See "Services Provided by
the Fund - Reinvestment of Distributions."
Capital Gains. Capital gains or losses are the result of the Portfolio's
sale of its securities at prices that are higher or lower than the prices paid
by the Portfolio to purchase such securities. Total gains from such sales, less
any losses from such sales (including losses carried forward from prior years)
represent net realized capital gains. Each of the Portfolios distributes its net
realized capital gains, if any, to its shareholders at least annually, usually
in December. Capital gain distributions are automatically reinvested in
additional shares of the Portfolio making the distribution at net asset value
per share on the ex-dividend date, unless otherwise requested. See "Services
Provided by the Fund-Reinvestment of Distributions."
Taxes. Each of the Portfolios intends to distribute substantially all of
its net investment income and net realized capital gains, if any, to
shareholders, and to continue to qualify for tax treatment under Subchapter M of
the Internal Revenue Code as a regulated investment company. Thus, it is not
expected that the Fund or the Portfolios will be required to pay any federal
income taxes. Shareholders (other than those exempt from income tax) normally
will have to pay federal income taxes and any state and local income taxes on
the dividends and distributions they receive from the Fund, whether such
dividends and distributions are received in cash or reinvested in additional
shares of the same Portfolio or another fund. Shareholders of the Fund are
advised to consult their own tax advisers with respect to these matters.
Dividends paid by the Portfolios from net investment income, as well as
distributions of net realized short-term capital gains, are, for federal income
tax purposes, taxable as ordinary income to shareholders. At the end of each
calendar year, shareholders are sent full information on dividends and capital
gain distributions, including information as to the portions taxable as ordinary
income and long-term capital gains and, if applicable, information on foreign
source income and foreign taxes. Information concerning the amount of dividends
eligible for the dividends-received deduction available for corporations is
contained in the Fund's Annual Report to Shareholders or may be obtained upon
request by calling INVESCO.
The Fund is required to withhold and remit to the U.S. Treasury 31% of
dividend payments, capital gain distributions, and redemption proceeds for any
account on which the owner provides an incorrect taxpayer identification number,
no number, or no certified number for a new account.
<PAGE>
ADDITIONAL INFORMATION
Voting Rights. All shares of the Portfolios have equal voting rights based
on one vote for each share owned. Voting with respect to certain matters, such
as ratification of independent accountants and the election of directors, will
be by all Portfolios of the Fund voting together. In other cases, such as voting
upon an investment advisory contract, voting is on a Portfolio-by-Portfolio
basis. To the extent permitted by law, when not all Portfolios are affected by a
matter to be voted upon, only shareholders of the Portfolio or Portfolios
affected by the matter will be entitled to vote thereon. The Fund is not
generally required and does not expect to hold regular annual meetings of
shareholders. However, the board of directors will call special meetings of
shareholders for the purpose, among other reasons, of voting upon the question
of removal of a director or directors when requested to do so in writing by the
holders of 10% or more of the outstanding shares of the Fund or as may be
required by applicable law or the Fund's Articles of Incorporation. The Fund
will assist shareholders in communicating with other shareholders as required by
the Investment Company Act of 1940. Directors may be removed by action of the
holders of a majority or more of the outstanding shares of the Fund.
Shareholder Inquiries. All inquiries regarding the Portfolios should be
directed to the Fund at the telephone number or mailing address set forth on the
cover page of this Prospectus.
Transfer and Dividend Disbursing Agent. INVESCO Funds Group, Inc., 7800 E.
Union Avenue, Denver, Colorado 80237, acts as registrar, transfer agent, and
dividend disbursing agent for the Fund pursuant to a Transfer Agency Agreement
which provides that the Fund will pay a fee of $14.00 per shareholder account or
omnibus account participant per year. The transfer agency fee is not charged to
each shareholder's or participant's account, but is an expense of the Fund to be
paid from the Fund's assets. Registered broker-dealers, third party
administrators of tax-qualified retirement plans and other entities, including
affiliates of INVESCO, may provide sub-transfer agency services to the Fund
which reduce or eliminate the need for identical services to be provided by
INVESCO. In such cases, INVESCO may pay the third party an annual sub-transfer
agency fee of up to $14.00 per participant in the third party's omnibus account
out of the transfer agency fee which is paid to INVESCO by the Fund.
<PAGE>
INVESCO STRATEGIC PORTFOLIOS, INC.
ENERGY PORTFOLIO
ENVIRONMENTAL SERVICES PORTFOLIO
FINANCIAL SERVICES PORTFOLIO
GOLD PORTFOLIO
HEALTH SCIENCES PORTOLIO
LEISURE PORTFOLIO
TECHNOLOGY PORTFOLIO
No-load mutual funds seeking
capital appreciation through
investment in designated market sectors
PROSPECTUS
February 28, 1995
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
If you're in Denver, visit one of our convenient Investor Centers:
Cherry Creek
155-B Fillmore Street
Denver Tech Center
7800 E. Union Avenue
Lobby Level
