SEMIANNUAL REPORT
April 30, 1996
INVESCO
STRATEGIC
PORTFOLIOS,
INC.
Energy
Environmental Services
Financial Services
Gold
Health Sciences
Leisure
Technology
Utilities
No-Load Portfolios Investing
In Targeted Sectors
INVESCO FUNDS
<PAGE>
Market Overview May 1996
The U.S. economy is sending mixed signals. In recent months, inflation
accelerated modestly and the U.S. trade deficit remained high. On the positive
side, figures for factory orders, inventories, and consumer confidence were
encouraging. Gains have also been seen for employment and personal income.
Overall, this mix of good and bad news has brightened the outlook for
gentle rises in Gross Domestic Product. First quarter GDP was estimated at an
annualized 2.8% and the second quarter should come in stronger.
The Federal Reserve Board is currently standing pat, and we do not
anticipate changes in short-term rates during the next few months. The Fed is
likely to act, though, if the economy appears to falter GDP growth rate dropping
below 1%, for instance.
Taking all of the above and additional factors into account, the INVESCO
forecast remains consistent with our message for the past several months: The
soft landing for the economy appears intact.
This may well mean moderate inflation and long-term gains for stocks and
bonds, albeit with short-term volatility. Political complications, the on-going
budget conflict, and major corporate earnings disappointments would, however,
put strain on the bull markets legs.
While the stock market was extremely volatile during the first four months
of 1996, a number of sectors performed strongly. Of particular note were energy,
consumer cyclicals (including the previously weak retail sector), and basic
materials. Results for technology and transportation companies were mixed, while
health care stocks generally underperformed.
/s/ R. Dalton Sim
- -------------------
Dalton Sim
President & CEO, INVESCO Trust Company
Chief Investment Officer, INVESCO Funds
<PAGE>
INVESCO Strategic Portfolios
We're pleased to report that the Strategic Portfolios are off to a great
start in 1996. Year-to-date, all eight portfolios are ahead of the Standard &
Poors 500 Index, as the chart below illustrates. See the reports on the
following pages for each portfolio's longer-term performance record. (Of course,
past performance is not a guarantee of future results.)(2)
INVESCO Strategic Portfolios
Year-to-Date Total Return Performance
as of 4/30/96(2)
S&P 500(1) 6.96%
-----------------------------------
Energy 15.32%
-----------------------------------
Environmental Services 10.35%
-----------------------------------
Financial Services 7.57%
-----------------------------------
Gold 56.57%
-----------------------------------
Health Sciences 10.74%
-----------------------------------
Leisure 11.30%
-----------------------------------
Technology 11.99%
-----------------------------------
Utilities 7.01%
-----------------------------------
The line graphs on the following pages illustrate the value of a $10,000
investment in each of the INVESCO Strategic Portfolios, plus reinvested
dividends and capital gain distributions, for the 10-year period ended 4/30/96;
or, in the case of Environmental Services, from inception through 4/30/96. The
charts and other total return figures cited reflect the portfolio's operating
expenses, but the indexes do not have expenses, which would, of course, have
lowered their performance.
Energy Portfolio
Energy Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 29.24%
-----------------------------------
5 years 4.73%
-----------------------------------
10 years 7.62%
-----------------------------------
<PAGE>
For the six-month period ended 4/30/96, Energy Portfolio achieved a total
return of 29.83%, compared to 13.72% for the S&P 500.(1,2) Lipper Analytical
Services ranked INVESCO Energy Portfolio #15 of 36 natural resources funds for
the one-year period ended 4/30/96, based on total return unadjusted for
commissions. For the five-year period, the fund was ranked #18 of 18 funds; for
the 10-year period, #8 of 9 funds.(3)
Much of the United States endured weeks of ferocious winter
weather that closed airports, highways, and factories. Concurrently,
energy use soared as did many energy stocks.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Energy Portfolio to the value of a $10,000
investment in the S&P 500 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the ten year period ended
4/30/96.
The supply/demand equation for oil and natural gas remains positive.
Supplies were severely depleted over the winter and early spring; rebuilding
reserves will take some time and represents a continuing price support. Oil
drillers were among the top performing industries over fourth quarter 1995 and
first quarter 1996.
Another positive factor leading to improved fund performance has been
enhanced technology in energy companies. Advanced methods have led to greater
accuracy in identification of promising drilling sites, at lower cost. With more
hits come stock price advances, particularly for faster-growing exploration and
production companies. All together, this industry accounts for 24.48% of fund
holdings.
Our smaller-capitalization holdings are balanced by major international
oil & gas companies, such as Exxon Corp and Mobil Corp. In addition, the fund
has investments in Royal Dutch Petroleum 5 Gldr Shrs and British Petroleum PLC
ADR.
In 1995 Thomas R. Samuelson became manager of the Energy Portfolio. He
joined INVESCO in 1995; previously, he worked for Swiss Bank Capital Markets and
Duff & Phelps, Inc. Tom earned his MBA and BS from the University of Tulsa. He
is a Chartered Financial Analyst.
Environmental Services Portfolio
Lipper Analytical Services ranked INVESCO Environmental Services Portfolio
#1 of 4 environmental funds for the one-year period ended 4/30/96, based on
total return unadjusted for commissions. For the five-year period, the fund was
ranked #3 of 3 funds.(3)
<PAGE>
Environmental Services Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 35.09%
-----------------------------------
5 years 1.89%
-----------------------------------
Since inception (1/91) 4.26%
-----------------------------------
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Environmental Services Portfolio to the value of a
$10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the
period from inception (1/91) through 4/30/96.
For the six-month period ended 4/30/96, Environmental Services Portfolio
achieved a total return of 20.81%, compared to 13.72% for the S&P 500. Like the
broader market, environmental stocks experienced lesser gains this year than
last. In the three-month period from 11/1/95 -- 1/31/96, the fund achieved a
total return of 11.33%; this compares to 8.52% for the three months ended
4/30/96, when the S&P 500 gained just 3.39%.(1,2)
Merger activity has benefited stock prices throughout the sector. Last
November, we took a new position in Allied Waste Industries, a small
non-hazardous, solid waste company growing through acquisition, as has Sanifill
Inc. The area of pollution control services is, in fact, our largest
concentration, representing over 17% of assets. Additional fast-growing
companies in this area include United Waste Systems, Superior Services, and
Continental Waste Industries.
One goal we have set for ourselves in managing the fund is to avoid
becoming dependent upon the government to create a need for our companies --
choosing industries, firms and stocks driven by market forces rather than
regulation. An example of this philosophy is our weighting in fertilizer
companies. Agrium Inc and Potash Corp Saskatchewan have strong growth potential
due to their pivotal roles in meeting increased global food demands by making
land more productive.
Water purification, distribution and related industries are additional key
areas with long-term potential. Here we have holdings in Culligan Water
Techno-logies, Cadiz Land, Memtec Ltd Sponsored ADR, and Wheelabrator
Technologies. US Filter, a new position, is
also growing through business expansion and mergers.
In 1995 Jeffrey G. Morris became manager of the Environmental Services
Portfolio. He is a Chartered Financial Analyst, and earned his BSBA from
Colorado State University. Jeff joined INVESCO in 1991. He also manages
Utilities Portfolio.
<PAGE>
Financial Services Portfolio
Lipper Analytical Services ranked INVESCO Financial Services Portfolio #2
of 17 financial services funds for the one-year period ended 4/30/96, based on
total return unadjusted for commissions. For the five-year period, the fund was
ranked #6 of 10 funds.(3)
Financial Services Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 38.21%
-----------------------------------
5 years 22.67%
-----------------------------------
Since inception (6/86) 16.52%
-----------------------------------
For the six-month period ended 4/30/96, the fund had a total return of
14.75%, compared to 13.72% for the S&P 500.(1,2)
The fund also outperformed the broad stock universe in 1995: For the
one-year period ended 12/31/95, the fund achieved a total return of 39.81%
compared to 37.44% for the S&P 500.(1,2)
Early this year, we took positions in Merrill Lynch and Morgan Stanley
Group. After underperforming in late 1995, stocks of securities brokers have
advanced strongly in 1996.
In order to add these holdings to the fund, over the past six months we
trimmed our positions in banking and insurance. These stocks have performed well
in a challenging environment for interest rate-sensitive equities. Strong
companies such as BankAmerica Corp, Wells Fargo, Citicorp, and Conseco Inc,
however, remain a part of our strategy for the remainder of 1996. And, while not
attempting to invest solely on the basis of merger potential, we are likely to
benefit from increased merger and acquisition trends within the banking
industry.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Financial Services Portfolio to the value of a
$10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the
period from inception (6/86) through 4/30/96.
Focusing on further diversification of fund holdings, we continue to seek
high quality companies that can grow earnings faster than their peers, while
generating acceptable returns on capital. With this goal in mind, we have added
to our holdings in finance-related companies and HMOs. Columbia/HCA Healthcare
has been a stand-out performer for the fund in 1996.
<PAGE>
Effective June 7, 1996, the Financial Services Portfolio is managed by
Dalton Sim, President and CEO of INVESCO Trust Company. Dalton began his
investment career in 1961 with Price Waterhouse, and joined INVESCO as Chief
Investment Officer in 1987. He earned a B. Comm. from the University of Toronto
and an MBA from Stanford University, as well as a CA from the Canadian Institute
of Chartered Accountants.
Gold Portfolio
Lipper Analytical Services ranked INVESCO Gold Portfolio #5 of 40
gold-oriented funds for the one-year period ended 4/30/96, based on total return
unadjusted for commissions. For the five-year period, the fund was ranked #8 of
28 funds; for the 10-year period, #14 of 19.(3)
For the six-month period ended 4/30/96, Gold Portfolio had a total return
of 64.68%, compared to 13.72% for the S&P 500.(1,2)
Several factors led to the funds exceptionally strong performance over the
past six months. Prominent among them were new discoveries, higher commodities
prices, and a volatile stock market.
One company held by the fund -- Bre-X Minerals Ltd -- found new deposits
in gold and other metals. The stock has consequently enjoyed strong price
advances. Arequipa Resources is another mining firm with interests in Peru,
which we hope will pay off handsomely as mining proceeds. All of these companies
stand to benefit as countries in West Africa and Southeast Asia open up to
foreign-based exploration firms.
Gold Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 66.57%
-----------------------------------
5 years 15.91%
-----------------------------------
10 years 7.94%
-----------------------------------
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Gold Portfolio to the value of a $10,000 investment
in the S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended 4/30/96.
Higher gold prices have also had a positive effect on the stock prices in
this sector. Many investors are choosing to diversify into hard assets. As this
report was written, bullion had fallen back from its 12-month high of $414.70
per troy ounce, but given on-going industrial and jewelry demand may remain
around $400.
Gold Portfolio is managed by Senior Vice President Daniel B.
Leonard. He joined INVESCO in 1975; his investment experience
extends back to 1960. He attended the New York University Graduate
School of Business and holds a BA from Washington & Lee University.
<PAGE>
Health Sciences Portfolio
Lipper Analytical Services ranked INVESCO Health Sciences Portfolio #1 of
6 health-biotechnology funds for the 10-year period ended 4/30/96, based on
total return unadjusted for commissions. For the one-year period, the fund was
ranked #4 of 18 funds; for the five-year period, #4 of 8.(3)
For the six-month period ended 4/30/96, Health Sciences Portfolio achieved
a total return of 23.66%, well ahead of the 13.72% total return posted by the
S&P 500.(1,2)
Over the past six months, the fund has readily outperformed the broad
stock market. This continues a trend begun in mid-1994, following a period of
underperformance by this sector. In our opinion, U.S. demographics suggest that
strong growth from this sector may continue well into the future, albeit with
occasional corrections.
Health Sciences Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 56.22%
-----------------------------------
5 years 15.80%
-----------------------------------
10 years 21.20%
-----------------------------------
The potential pitfalls, however, are as numerous as opportunities, and
careful stock selection is crucial in pursuing long-term results. Consequently,
the funds holdings are well-diversified among the industries of this market
sector. We are particularly seeking companies which offer or will soon offer new
products; new drugs and medical devices usually carry higher prices, enjoy
higher margins, and experience rapidly accelerating volumes factors which can
make new product very profitable.
At one time, for instance, we favored HMOs. More recently, however, these
firms have seen pricing and margin pressures, and we now hold only two of the
stronger stocks in this category. Oxford Health Plans recently reported strong
earnings gains and operating margins, and the outlook for membership and revenue
growth is positive. This particular stock gained over 20% in February 1996.
Instead of HMOs, our focus has shifted to areas where companies can gain
unique advantages from special products, such as pharmaceuticals and medical
devices. In the former category, we have taken new positions in Bristol-Myers
Squibb, Glaxo Wellcome PLC Sponsored ADR, Rhone-Poulenc Rorer, and Johnson &
Johnson.
Medical device and supply companies are benefiting from increases in
surgical procedures. Cardiometrics Inc, which offers innovative angioplasty
products, successfully went public early last November; these gains added to the
funds outperformance in late 1995. Nellcor Puritan Bennett is an example of a
merger which has led to improved profitability recognized by the market in stock
price advances.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Health Sciences Portfolio to the value of a $10,000
investment in the S&P 500 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the ten year period ended
4/30/96.
Despite some recent setbacks, biotechnology remains promising. Genzyme
Corp received only limited FDA approval for a new product, which caused a
decline in the stock price. We closed our position in Cephalon Inc, due to
uncertainty about clinical trials and impending FDA action. On the other hand,
Amgen Inc remains among our top holdings; this company develops and markets
blood-related biotech products.
Medical delivery companies are another area of interest. These firms
include hospitals, information service, and physician practice management. A
related finance holding is Medaphis Corp, which contracts with doctors to
provide back office services such as patient billing, insurance administration,
and managed care negotiations.
We have a significant stake in HBO & Co. This is a computer systems firm
providing specialized services to the medical industry. Positive earnings
surprises announced in February have recently driven up the stock price.
Health Sciences Portfolio is co-managed by INVESCO Vice President John R.
Schroer, a Chartered Financial Analyst, who became a co-manager of the fund in
1994. He started his investment career in 1989, after earning an MBA and BA from
the University of Wisconsin. Effective June 1, 1996, Carol A. Werther joined the
team as co-manager. Carol was previously a portfolio manager specializing in
biotechnology stocks with Rothschild Management Ltd. She earned her MBA from New
York University and MS from the University of Alabama, as well as a BS from
Cornell University.
Leisure Portfolio
Lipper Analytical Services ranked INVESCO Leisure Portfolio #2 of 9
specialty/miscellaneous funds for the 10-year period ended 4/30/96, based on
total return unadjusted for commissions. For the one-year period, the fund was
ranked #18 of 27 funds; for the five-year period, #4 of 18.(3)
For the six-month period ended 4/30/96, the fund had a total return of
14.55%, compared to 13.72% for the S&P 500.(1,2)
Leisure stocks underperformed the broad equity market throughout 1995. In
the first four months of 1996, however, that situation has been convincingly
reversed. Year-to-date as of 4/30/96, Leisure Portfolio had a total return of
11.30%, compared to 6.96% for the S&P 500.(1,2)
We have recently increased our holdings in selected advertising agencies,
on the expectation of continued increases in global ad spending. Additional
positive factors for this industry are earnings growth rates in excess of the
market average and attractive valuations. New positions here include Cordiant
PLC, WPP Group PLC, Eagle River Interactive, and Omnicom Group.
<PAGE>
We have also increased our focus on publishing. Belo (AH) Corp, a
publisher and broadcaster, should see improved earnings through its ability to
raise newspaper ad rates. Times Mirror is also enjoying lower costs for
newsprint and has improved profitability through restructuring; we expect rapid
earnings growth and potential price advances.
Leisure Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 22.03%
-----------------------------------
5 years 20.42%
-----------------------------------
10 years 16.83%
-----------------------------------
The first serious innovation in a decade -- parabolic skis, which provide
greater turning control -- led to new fund investments in two of the largest ski
manufacturers, Anthony Industries and Salomon SA.
Due to regulatory uncertainties, cable system operators have
underperformed the broad market. But broadcasters and cable programmers have
done very well. Our key holdings in the latter areas include Heftel
Broadcasting, Evergreen Media, Lin Television, and United Video Satellite Group.
Among cable program producers, we have positions in Turner Broadcasting System,
Telecommunications Inc -- Liberty Media, Tele-Communications International, and
Gaylord Entertainment.
We have recently taken profits in several gaming stocks -- among first
quarter 1996's best performing industry groups. Some of the smaller casino
operators outside Las Vegas and Atlantic City have suffered due to poor location
and increased competition; we are sticking with well-capitalized firms which
stand to benefit from expected consolidation. We anticipate further cuts in our
exposure to this area due to the rise in valuations. One particular group of
industries has been affected by the moderate acceleration in inflation. Higher
food prices are hurting margins for restaurants, so we have reduced our exposure
to restaurants and the food industry.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Leisure Portfolio to the value of a $10,000
investment in the S&P 500 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the ten year period ended
4/30/96.
In 1996 Mark Greenberg became the manager of the Leisure Portfolio. He
started his investment career in 1980 and is now a Chartered Financial Analyst.
Mark earned his BSBA in Finance from Marquette University. Prior to joining
INVESCO early this year, he was with Scudder, Stevens & Clark in New York.
<PAGE>
Technology Portfolio
Lipper Analytical Services ranked INVESCO Technology Portfolio #2 of 13
science & technology funds for the 10-year period ended 4/30/96, based on total
return unadjusted for commissions. For the one-year period, the fund was ranked
#11 of 36 funds; for the five-year period, #7 of 15.(3)
For the six-month period ended 4/30/96, Technology Portfolio achieved a
total return of 14.34%, compared to 13.72% for the S&P 500.(1,2)
In a volatile securities market, technology stocks have been very
volatile. Relatively modest earnings disappointments have been followed by sharp
price declines; positive news, such as Microsoft Corps earnings reports, have
caused manic upswings.
Technology Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 42.42%
-----------------------------------
5 years 26.05%
-----------------------------------
10 years 19.92%
-----------------------------------
In the face of this challenge, the fund has taken a moderately defensive
position. Our holdings are focused on companies that benefit from using
technology, enjoy predictable earnings, and/or hold strong market positions.
This means that we are avoiding initial public offerings of highly speculative
companies. In the short run, this strategy may result in some slippage against
our peer group; over the longer-term, we hope to outperform while simultaneously
avoiding some unnecessary, unproductive volatility.
Our current focus is on computer software and service, telecommunications,
computer systems, electronics, medical products and pharmaceuticals. For
example, over the past six months, we have purchased Harris Corp Delaware and
Kent Electronics.
Cheaper communications via the Internet may displace some older avenues of
advertising, creating attractive investment opportunities. CompuServe Corp (an
H&R Block unit which recently went public) is the number two supplier of
commercial on-line services; we consider it attractively priced and a good
example of valuable high tech divisions that can be spun off from larger
companies.
Another valuable spin-off is from a defense company in Israel called
Tadiran Telecommunications Ltd; this firm has spun out its rapidly growing
telecommunications unit. In our opinion, the market will recognize such
companies for their ability to exploit coming trends and technologies.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Technology Portfolio to the value of a $10,000
investment in the S&P 500 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the ten year period ended
4/30/96.
The fund is underweighting investments in computer hardware. Similarly, we
have been avoiding semiconductor companies, among the worst performing
industries for two consecutive quarters.
Technology Portfolio is co-managed by Senior Vice President Daniel B.
Leonard and Vice President Gerard Hallaren. Dan's experience in investment
management extends back to 1960. He joined INVESCO in 1975 and is now a senior
vice president. He attended the New York University Graduate School of Business
and holds a BA from Washington & Lee University. He also manages the Gold
Portfolio. Gerard earned his BA from the University of Massachusetts at Amherst.
He joined INVESCO in 1994, and became a co-manager of the fund in 1996.
Utilities Portfolio
Lipper Analytical Services ranked INVESCO Utilities Portfolio #1 of 22
utilities funds for the five-year period ended 4/30/96, based on total return
unadjusted for commissions. For the one-year period, the fund was ranked #4 of
85 funds.(3)
For the six-month period ended 4/30/96, Utilities Portfolio achieved a
total return of 13.61%, compared to 13.72% for the S&P 500.(1,2)
Utilities stocks have been buffeted by the same winds which have rocked
bonds. After a strong year in 1995, the market was roiled by confusion over the
likely direction of economic growth and consequent interest rate moves. Electric
utilities, in particular, performed poorly during the first quarter of 1996.
Some indications of moderate economic weakness have since appeared, and
the potential for cuts in short-term interest rates by the Federal Reserve Board
has created new hope for fixed-income investors. April saw a rally for bond
prices, and utilities stocks followed suit.
Despite the considerable market obstacles over the past six months,
Utilities Fund has readily outperformed both the Dow Jones Utilities Index (down
2.07% for the six months ended 4/30/96) and its competitors. Your fund's gains
came primarily in April 1996, although it has avoided losses for each month
throughout the period.(1,2,3)
The fund achieved these results through extremely selective stock picks.
Industry highlights include electric and telephone utilities, which represent
over half of the portfolio, plus a strategic stake in energy stocks.
<PAGE>
Utilities Portfolio
Average Annualized Total Return
as of 4/30/96(2)
1 year 27.31%
-----------------------------------
5 years 13.84%
-----------------------------------
Since inception (6/86) 11.35%
-----------------------------------
On a long-term basis, many of the electric utilities companies are less
attractive in terms of dividend and earnings growth potential. As a result, we
are focusing on low-cost producers with knowledgeable management. Going forward,
we do see appreciation opportunities for the electric utilities -- for instance,
Idaho Power is a potential takeover candidate. PacifiCorp, a low-cost producer,
is a good example of a stock we like because of its competitive edge in pricing
and diversification as a telephone service provider.
Our weightings in telephone utilities and telecommunications firms have
shifted during the period, in response to the Telecommunications Act passed
early this year. Many of the larger firms which have dominated these industries
will see increasing downward pressure on revenue, market share and earnings as a
result of the Act. Smaller, nimbler firms, however, have an excellent
opportunity of rapid earnings growth as the monopolies break up; we are
positioning the fund to seek to benefit from this trend.
We have further diversified the portfolio by placing increased weight in
energy stocks, which have done well due to a very hard winter creating low
supply. Panhandle Eastern has joined our list of top five holdings, for example.
Natural gas is another area of interest.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the ISP-Utilities Portfolio to the value of a $10,000
investment in the S&P 500 Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the period from inception
(6/86) through 4/30/96.
In 1996, Jeffrey Morris became the manager of the Utilities Portfolio. He
is a Chartered Financial Analyst, and earned his BSBA from Colorado State
University. Jeff joined INVESCO in 1991. He also manages Environmental Services
Portfolio.
(1) The S&P 500 is an unmanaged index considered representative of the
performance of the broad U.S. stock market. The Dow Jones Utilities Index
is an unmanaged index of stocks within the utilities sector.
<PAGE>
(2) Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Past performance is not a
guarantee of future results. Investment return and principal value will
fluctuate so that, when redeemed, an investors shares may be worth more or
less than when purchased.
(3) Past performance is not a guarantee of future results.
Rankings provided by Lipper Analytical Services, an
independent fund analyst, are based upon total return
performance unadjusted for commissions. When available,
rankings are cited for one-, five-, and 10-year periods.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Five Largest Common Stock Holdings
April 30, 1996
Description Value
- ------------------------------------------------------------------------
ENERGY Portfolio
Louisiana Land & Exploration $4,330,000
Reading & Bates 4,292,400
British Petroleum PLC ADR 3,823,750
Petroleum Geo-Services A/S Sponsored ADR 3,795,000
Exxon Corp 3,417,000
ENVIRONMENTAL SERVICES Portfolio
ARCO Chemical $1,540,625
Thermo Electron 1,534,463
Millipore Corp 1,319,063
Potash Corp Saskatchewan 1,184,400
Culligan Water Technologies 1,181,250
FINANCIAL SERVICES Portfolio
BankAmerica Corp $26,512,500
First Chicago NBD 24,750,000
Columbia/HCA Healthcare 21,250,000
Conseco Inc 20,075,000
Wellpoint Health Networks Class A 17,125,000
GOLD Portfolio
Bre-X Minerals Ltd $30,922,790
Golden Star Resources 24,337,500
Arequipa Resources 21,814,893
Aber Resources Ltd 18,450,000
Cameco Corp 16,087,500
HEALTH SCIENCES Portfolio
HBO & Co $57,584,250
Oxford Health Plans 50,449,500
American Home Products 43,255,000
Guidant Corp 39,287,500
Amgen Inc 36,225,000
LEISURE Portfolio
Turner Broadcasting Systems Class B $9,720,000
Disney (Walt) Co 7,206,446
McGraw-Hill Inc 6,618,750
Lin Television 6,384,000
Harcourt General 6,336,000
<PAGE>
TECHNOLOGY Portfolio
MEMC Electronic Materials $24,937,500
First Data 22,800,000
General Motors Class E 21,422,500
Harris Corp 18,525,000
Kent Electronics 16,850,000
UTILITIES Portfolio
U S WEST Communications Group $5,331,700
Panhandle Eastern 5,317,875
Southern New England Telecommunications 5,139,750
Public Service of Colorado 4,703,750
Commonwealth Energy Systems SBI 4,603,556
Composition of holdings is subject to change.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Investment Securities
April 30, 1996
UNAUDITED
<TABLE>
<CAPTION>
Country Code Shares or
if Principal
Description Non US Amount Value
- ---------------------------------------------------------------------------------------------
ENERGY Portfolio
<S> <C> <C>
COMMON STOCKS & RIGHTS 90.26%
ELECTRONICS 1.98%
Input/Output Inc* 70,000 $2,432,500
-------------
EXPLORATION & MINING 1.16%
Bre-X Minerals Ltd* 8,000 1,175,213
Cumberland Resources Ltd* 40,000 254,140
-------------
1,429,353
-------------
MEDICAL RELATED - DRUGS 3.57%
American Home Products 30,000 3,165,000
Bristol-Myers Squibb 15,000 1,233,750
-------------
4,398,750
-------------
Oil & Gas 83.55%
EQUIPMENT 3.97%
Camco International 10,000 356,250
Dresser Industries 71,000 2,263,125
Enerflex Systems 20,000 370,927
Smith International* 49,700 1,478,575
Tesco Corp* 50,000 416,833
-------------
4,885,710
-------------
EXPLORATION & PRODUCTION 23.67%
Abacan Resource Foreign Shrs* 300,000 1,668,750
Alberta Energy 36,000 706,500
Amber Energy 120,000 1,092,948
Anadarko Petroleum 30,000 1,747,500
Apache Corp 20,000 580,000
Barrett Resources* 16,000 444,000
Belco Oil & Gas* 60,600 1,749,825
Cairn Energy USA* 18,000 222,750
Chesapeake Energy* 30,000 2,122,500
Enron Oil & Gas 14,200 376,300
Enterprise Oil PLC Sponsored ADR 40,000 815,000
Flores & Rucks* 100,000 2,087,500
Forcenergy Gas Exploration Rights*@^ 9,342 0
Newfield Exploration* 4,000 137,000
Noble Affiliates 70,000 2,458,750
Nuevo Energy* 50,000 1,412,500
Phoenix Resource 9,000 229,500
<PAGE>
Production Operators 100,000 3,325,000
Renaissance Energy* 50,000 1,320,278
Stone Energy* 8,000 144,000
TransTexas Gas* 145,200 1,470,150
Union Pacific Resources Group* 100,000 2,750,000
Unit Corp* 100,000 687,500
United Meridian* 20,000 620,000
Vastar Resources 27,000 982,125
-------------
29,150,376
-------------
FIELD SERVICES 12.42%
BJ Services* 60,000 2,302,500
Nabors Industries* 40,000 615,000
Oceaneering International* 30,000 472,500
Offshore Logistics* 30,000 438,750
Petroleum Geo-Services A/S Sponsored ADR* 120,000 3,795,000
Pride Petroleum Services* 160,000 2,620,000
Tidewater Inc 45,000 1,912,500
Transocean A/S* 86,900 2,429,076
Weatherford Enterra* 20,000 705,000
-------------
15,290,326
-------------
INTEGRATED 11.84%
Amoco Corp 40,000 2,920,000
Kerr-McGee Corp 40,000 2,555,000
Louisiana Land & Exploration 80,000 4,330,000
USX-Marathon Group 100,000 2,200,000
Unocal Corp 80,000 2,570,000
-------------
14,575,000
-------------
INTERNATIONAL 12.43%
British Petroleum PLC ADR 35,000 3,823,750
Exxon Corp 40,200 3,417,000
Maxus Energy* 20,000 507,500
Mobil Corp 20,000 2,300,000
Royal Dutch Petroleum 5 Gldr Shrs 11,000 1,575,750
Texaco Inc 25,000 2,137,500
Total Cie Francaise des Petroles SA
Sponsored ADR Representing Ord B Shrs 45,000 1,541,250
-------------
15,302,750
-------------
OFFSHORE DRILLING 12.89%
Atwood Oceanics* 20,000 852,500
Diamond Offshore Drilling* 53,800 2,676,550
ENSCO International* 51,000 1,530,000
Falcon Drilling* 60,000 1,612,500
Global Marine* 100,000 1,137,500
Marine Drilling* 100,000 987,500
<PAGE>
Reading & Bates* 175,200 4,292,400
Sonat Offshore Drilling 50,800 2,787,650
-------------
15,876,600
-------------
PRODUCTION/PIPELINE 4.49%
Aquila Gas Pipeline 50,000 693,750
Enron Corp 64,000 2,576,000
Enron Global Power & Pipelines 24,000 594,000
Panhandle Eastern 15,000 489,375
Sonat Inc 27,000 1,177,875
-------------
5,531,000
-------------
UTILITIES 1.00%
MCN Corp 50,000 1,231,250
-------------
WHOLESALE 0.84%
World Fuel Services 60,000 1,035,000
-------------
TOTAL OIL & GAS 102,878,012
-------------
TOTAL COMMON STOCKS & RIGHTS
(Cost $100,910,304) 111,138,615
-------------
PREFERRED STOCKS 1.74%
Oil & Gas 1.74%
PRODUCTION/PIPELINE 0.26% Tejas Gas,
Depository Shrs
(Each shr consists of
one-fifth interest in a shr of
5.25% Conv Pfd) 6,600 316,800
-------------
UTILITIES 1.48%
MCN Corp, Conv Pfd*
(Each shr consists of
five-sixths interest in a shr of
8.75% Conv Pfd) 69,400 1,830,425
-------------
TOTAL PREFERRED STOCKS
(Cost $1,907,558) 2,147,225
-------------
FIXED INCOME SECURITIES 0.81%
OIL & GAS - EXPLORATION &
PRODUCTION 0.81%
Forcenergy Gas Exploration
Exch Conv Sub Notes^
7.000%, 9/15/2000 (Cost $1,000,000) 1,000,000 1,000,000
-------------
<PAGE>
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENTS 7.19%
Repurchase Agreement with State
Street Bank & Trust Co dated
4/30/1996 due 5/1/1996 at 5.230%,
repurchased at $8,852,286
(Collateralized by US Treasury
Bills due 1/9/1997
value $9,027,409) (Cost $8,851,000) 8,851,000 8,851,000
-------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $112,668,862)
(Cost for Income Tax Purposes
$113,330,992) 123,136,840
=============
ENVIRONMENTAL SERVICES Portfolio
COMMON STOCKS 72.18%
AEROSPACE & DEFENSE 0.92%
SPACEHAB Inc* 21,000 300,562
-------------
AGRICULTURAL 0.55%
Cadiz Land* 30,000 180,000
-------------
AUTOMOBILE RELATED 0.38%
AirSensors Inc* 15,000 125,625
-------------
CHEMICALS 12.38%
Agrium Inc CA 51,700 665,637
ARCO Chemical 29,000 1,540,625
Minerals Technologies 17,000 654,500
Potash Corp Saskatchewan CA 16,800 1,184,400
-------------
4,045,162
-------------
COMMERCIAL SERVICES 1.66%
Compagnie Generale des Eaux FR 5,000 542,754
-------------
DIVERSIFIED COMPANIES 4.55%
Laidlaw Inc Class B CA 60,000 630,000
Whitman Corp 34,000 858,500
-------------
1,488,500
-------------
ELECTRONICS 1.34%
Nokia Corp Sponsored ADR
Representing Ord A Shares FI 12,000 436,500
-------------
ENERGY 2.10%
Wheelabrator Technologies 43,000 688,000
-------------
<PAGE>
ENGINEERING 2.21%
Jacobs Engineering Group* 26,000 721,500
-------------
MEDICAL PRODUCTS 0.73%
Meridian Diagnostics 25,000 237,500
-------------
Pollution Control 34.56%
EQUIPMENT/SYSTEMS 6.14%
Culligan Water Technologies* 35,000 1,181,250
Memtec Ltd Sponsored ADR AS 5,000 136,875
US Filter* 22,400 688,800
-------------
2,006,925
-------------
RECYCLING 11.00%
Harsco Corp 14,600 1,005,575
IMCO Recycling 37,400 813,450
Philip Environmental* CA 119,000 966,875
TETRA Technologies* 41,000 809,750
-------------
3,595,650
-------------
SERVICES 17.42%
Allied Waste Industries* 92,000 897,000
Continental Waste Industries* 56,500 678,000
EnviroSource Inc* 40,000 140,000
Republic Industries 10,000 327,500
Sanifill Inc* 17,100 741,713
Superior Services* 23,000 322,000
USA Waste Service* 22,700 590,200
United Waste Systems* 12,000 660,000
WMX Technologies 25,400 882,650
Waste Management
International PLC ADR* UK 40,000 455,000
-------------
5,694,063
-------------
TOTAL POLLUTION CONTROL 11,296,638
-------------
SCIENTIFIC INSTRUMENTS 8.73%
Millipore Corp 31,500 1,319,063
Thermo Electron 24,900 1,534,463
-------------
2,853,526
-------------
UTILITIES 2.07%
Idaho Power 23,300 675,700
-------------
TOTAL COMMON STOCKS
(Cost $19,460,056) 23,591,967
-------------
<PAGE>
PREFERRED STOCKS 0.00%
POLLUTION CONTROL - RECYCLING 0.00%
Cyclean Inc, Series D Pfd*^
(Cost $500,000) 125,000 1
-------------
SHORT-TERM INVESTMENTS 27.82%
Commercial Paper 4.91%
FINANCE RELATED 4.91%
Sears Roebuck Acceptance 5.300%, 5/7/1996
(Cost $1,605,000) 1,605,000 1,605,000
Repurchase Agreements 22.91%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1996 due 5/1/1996
at 5.230%, repurchased at $7,490,088
(Collateralized by US Treasury Bills due 1/9/1997
value $7,640,059) (Cost $7,489,000) 7,489,000 7,489,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,094,000) 9,094,000
-------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $29,054,056#) 32,685,968
=============
FINANCIAL SERVICES Portfolio
COMMON STOCKS 99.80%
BANKING 47.80%
Banc One 412,500 14,334,375
Bank of New York 300,000 14,550,000
BankAmerica Corp 350,000 26,512,500
Chase Manhattan 221,800 15,276,475
Citicorp 175,000 13,781,250
Compass Bancshares 500,000 16,750,000
CoreStates Financial 300,000 11,700,000
First Chicago NBD* 600,000 24,750,000
First Security 505,000 12,751,250
PNC Bank 525,000 15,881,250
Regions Financial 280,000 12,915,000
Republic New York 250,000 14,843,750
Southern National 400,000 11,150,000
Wells Fargo 50,000 12,131,250
-------------
217,327,100
-------------
FINANCE RELATED 4.40%
American Express 300,000 14,550,000
Dean Witter Discover 100,000 5,450,000
-------------
20,000,00
-------------
<PAGE>
HEALTH CARE RELATED 7.09%
Columbia/HCA Healthcare 400,000 21,250,000
OrNda Healthcorp* 400,000 11,000,000
-------------
32,250,000
-------------
HEALTH MAINTENANCE
ORGANIZATIONS 7.21%
Foundation Health* 400,000 15,650,000
Wellpoint Health Networks Class A* 500,000 17,125,000
-------------
32,775,000
-------------
INSURANCE 26.60%
American Financial Group 450,000 13,781,250
American General 200,000 7,025,000
Conseco Inc 550,000 20,075,000
Equitable of Iowa 240,000 8,460,000
Jefferson-Pilot Corp 300,000 15,825,000
Leucadia National 500,000 13,000,000
Lincoln National 200,000 9,650,000
PennCorp Financial Group 425,000 13,015,625
Providian Corp 250,000 11,531,250
Torchmark Corp 200,000 8,600,000
-------------
120,963,125
-------------
INVESTMENT BROKERS 4.87%
Merrill Lynch 200,000 12,075,000
Morgan Stanley Group 200,000 10,050,000
-------------
22,125,000
-------------
SAVINGS & LOAN 1.83%
Federal Home Loan Mortgage 100,000 8,337,500
-------------
TOTAL COMMON STOCKS
(Cost $420,557,442) 453,777,725
-------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 0.20%
FINANCE RELATED 0.20%
Associates Corp of North America
5.340%, 5/1/1996 (Cost $930,000) 930,000 930,000
-------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $421,487,442#) 454,707,725
=============
<PAGE>
GOLD Portfolio
COMMON STOCKS 89.95%
BANKING 1.50%
Bank fuer Internationalen
Zahlungsausgleich SZ 600 5,495,297
-------------
EXPLORATION & MINING 87.39%
Aber Resources Ltd* CA 1,200,000 18,450,000
Acacia Resources Ltd* AS 400,000 1,006,464
Adrian Resources Ltd* CA 300,000 1,171,875
Agnico Eagle Mines CA 600,000 10,950,000
Arequipa Resources*~ CA 1,500,000 21,814,893
Argosy Mining* CA 1,000,000 1,872,995
Arizona Star Resource* CA 500,000 1,156,850
Armada Gold Class A* CA 150,000 234,675
Ashanti Goldfields Ltd Registered S GDR GH 300,000 6,562,500
Barrick Gold CA 200,000 6,125,000
Bema Gold* CA 1,000,000 3,625,000
Birch Mountain Resources Ltd* CA 150,000 661,057
Bre-X Minerals Ltd* CA 210,500 30,922,790
Cameco Corp CA 300,000 16,087,500
Canyon Resources* 750,000 2,765,625
Crown Resources*~ 960,000 5,400,000
Cumberland Resources Ltd* CA 500,000 3,176,747
Dayton Mining* CA 200,000 1,400,000
Delta Gold Mining Class A* CA 250,000 317,675
Emperor Mines Ltd* AS 3,000,000 7,784,370
Euro-Nevada Mining CA 300,000 11,237,973
First Dynasty Mines Ltd* CA 691,800 3,999,469
FirstMiss Gold* 375,000 11,531,250
Francisco Gold* CA 400,000 1,351,495
Franco-Nevada Mining CA 250,000 14,864,607
Gasgoyne Gold Mines NL AS 200,000 448,191
Goldbelt Resources*~ CA 2,000,000 2,410,348
Golden Star Resources*~ 1,650,000 24,337,500
Goldfields Ltd* AS 333,333 878,034
Great Central Mines NL* AS 600,000 1,835,224
Greenstone Resources Ltd* CA 1,000,000 9,437,500
Guyana Gold* CA 600,000 683,092
Guyanor Ressources SA Class B* FR 689,000 6,098,216
Hemlo Gold Mines CA 200,000 2,600,000
High River Gold Mines Ltd* CA 499,300 2,237,113
Homestake Mining 500,000 10,062,500
Inca Pacific Resources* CA 100,000 154,247
International Capri Resources*~ CA 435,000 958,533
International Taurus Resources* CA 1,200,000 1,498,396
KWG Resources* CA 500,000 4,375,000
Kinross Gold* CA 500,000 4,312,500
Loki Gold*~ CA 1,685,000 4,084,231
MK Gold*~ 1,000,000 2,250,000
Manhattan Minerals* CA 399,000 1,670,491
Metallica Resources* CA 400,000 1,659,988
Miramar Mining* CA 466,100 2,825,731
Monarch Resources* CA 255,000 393,329
<PAGE>
Nevsun Resources Ltd* CA 500,000 3,984,706
Newcrest Mining Ltd AS 787,850 3,797,452
Original Sixteen To One Mine 96,100 432,450
Orvana Minerals* CA 500,000 2,974,757
Placer Dome CA 200,000 5,550,000
Rea Gold* CA 400,000 1,150,000
Rex Diamond Mining* CA 240,000 599,647
Royal Oak Mines* CA 1,200,000 4,950,000
Santa Fe Pacific Gold CA 500,000 7,437,500
Scorpion Minerals* CA 133,333 998,931
Solitario Resources* CA 204,000 299,679
South Pacific Resources* CA 150,000 1,102,293
Sutton Resources Ltd* 100,000 1,470,313
TVI Pacific* CA 1,500,000 2,589,141
Teck Corp Class B CA 400,000 8,564,362
Texas Star Resources* 500,000 312,500
Trillion Resources*~ CA 606,800 2,585,057
Yamana Resources* CA 400,000 1,307,424
-------------
319,787,186
-------------
METALS 0.86%
Freeport McMoRan Copper & Gold Class A 100,000 3,162,500
-------------
OIL & GAS RELATED 0.20%
Texas T Resources*~ CA 400,000 719,818
-------------
TOTAL COMMON STOCKS
(Cost $241,504,521) 329,164,801
-------------
PREFERRED STOCKS 4.70%
EXPLORATION & MINING 2.07%
Coeur D'Alene Mines, 7.000%
Mandatory Adjustable
Redeemable Conv Security 275,000 5,740,625
Hecla Mining, $3.50, Series B
Cum Conv Pfd 42,100 1,841,875
-------------
7,582,500
-------------
METALS 2.63%
Freeport McMoRan Copper &
Gold, 7.000%, Conv Pfd 300,000 9,637,500
-------------
TOTAL PREFERRED STOCKS
(Cost $15,088,401) 17,220,000
-------------
FIXED INCOME SECURITIES 3.34%
EXPLORATION & MINING 3.34%
Agnico Eagle Mines,
Conv Sr
Notes, 3.500%, 1/27/2004 CA 3,000,000 3,180,000
Ashanti Capital Ltd,
Exchangeable Gtd Notes
5.500%, 3/15/2003 CJ 7,000,000 6,938,750
<PAGE>
Canyon Resources, Conv Sub
Notes, 6.000%, 6/1/1998^ 2,000,000 2,090,000
-------------
(Cost $11,821,519) 12,208,750
-------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 2.01%
FINANCE RELATED 2.01%
American Express Credit
5.330%, 5/1/1996
(Cost $7,350,000) 7,350,000 7,350,000
-------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $275,764,441)
(Cost for Income Tax Purposes
$276,199,419) 365,943,551
=============
HEALTH SCIENCES Portfolio
COMMON STOCKS & WARRANTS 93.91%
BIOTECHNOLOGY 9.57%
Amgen Inc* 630,000 36,225,000
Arris Pharmaceutical*~ 611,000 9,470,500
BioCryst Pharmaceuticals* 250,000 3,406,250
Biogen Inc*~ 284,000 18,708,500
Centocor Inc* 540,000 21,600,000
Creative BioMolecules* 630,000 5,177,813
Ecogen Technologies I*^~ 100 1,320,000
Genzyme Corp* 75,000 4,218,750
ImClone Systems* 650,000 8,693,750
MedClone Inc Warrants
(Exp 1998)*^ 500,000 0
Metra Biosystems*^ 350,081 4,169,054
Unisyn Technologies*^ 31,132 31,132
UroMed Corp* 429,333 4,507,996
Xenometrix Inc*^~ 145,641 942,115
-------------
118,470,860
-------------
COMPUTER RELATED 4.65%
HBO & Co 484,920 57,584,250
-------------
ELECTRONICS 2.46%
Perkin-Elmer Corp 555,000 30,455,625
-------------
FINANCE RELATED 1.56%
Medaphis Corp* 420,000 19,372,500
-------------
HEALTH CARE FACILITIES 1.28%
Home Health Corp of America*~ 500,000 6,500,000
Salick Health Care* 245,000 9,310,000
-------------
15,810,000
-------------
<PAGE>
HEALTH MAINTENANCE ORGANIZATIONS 6.81%
Oxford Health Plans* 999,000 50,449,500
US HealthCare 650,000 33,881,250
-------------
84,330,750
-------------
MEDICAL EQUIPMENT & SUPPLIES 4.99%
Becton Dickinson & Co 365,500 29,468,437
Cardiovascular Diagnositics* 250,000 2,625,000
Diametrics Medical* 439,554 3,131,822
Johnson & Johnson 250,000 23,125,000
NABI Inc* 276,500 3,404,406
-------------
61,754,665
-------------
MEDICAL INSTRUMENTS 5.92%
Arterial Vascular Engineering* 156,800 6,899,200
IDEXX Laboratories* 537,000 23,896,500
Medtronic Inc 78,200 4,154,375
Physio-Control International* 286,300 5,582,850
Waters Corp* 1,175,000 32,753,125
-------------
73,286,050
-------------
MEDICAL PRODUCTS 17.63%
Baxter International 735,000 32,523,750
Boston Scientific* 283,000 12,204,375
Cardiometrics Inc*^ 322,500 1,839,844
Clarus Medical Systems Warrants
(Exp 2000)*^~ 2,224 0
Corvita Corp* 100,000 1,018,750
Depotech Corp* 275,000 6,737,500
Electroscope Inc*^~ 157,500 787,500
Electroscope Inc Warrants
(Exp 1996)*^~ 42,000 0
Emisphere Technologies*~ 500,000 6,625,000
Guidant Corp 700,000 39,287,500
KeraVision Inc* 206,185 3,273,187
Landec Corp*^~ 378,072 6,105,863
Matrix Pharmaceutical* 811,200 21,091,200
Nellcor Puritan Bennett* 650,000 31,850,000
Penederm Inc* 255,000 4,335,000
ResMed Inc*~ 445,000 5,562,500
Rochester Medical* 200,000 4,050,000
Sepracor Inc* 360,000 5,040,000
Sofamor/Danek Group* 775,000 25,381,250
Tecnol Medical Products* 538,700 10,504,650
-------------
218,217,869
-------------
MEDICAL RELATED - DRUGS 29.85%
ALPHARMA Inc Class A 1,000,000 24,500,000
American Home Products 410,000 43,255,000
Astra AB Series A Shrs 580,000 25,726,350
<PAGE>
Bristol-Myers Squibb 260,000 21,385,000
CIMA Labs*~ 466,666 3,202,495
Crown Laboratories*^~ 759,792 1,089,827
Dura Pharmaceuticals* 150,706 8,062,771
Dura Pharmaceuticals Series W
Warrants (Exp 2000)*^ 120,000 8,190,000
Elan Corp PLC Sponsored ADR* 385,000 25,458,125
Fuisz Technologies Ltd* 414,400 10,567,200
GelTex Pharmaceuticals* 450,000 10,575,000
Glaxo Wellcome PLC Sponsored ADR 1,000,000 24,125,000
INCYTE Pharmaceuticals* 330,000 10,601,250
Lilly (Eli) & Co 400,000 23,600,000
Neurobiological Technologies* 150,000 787,500
Pfizer Inc 380,000 26,172,500
Pharmacia & Upjohn 580,000 22,185,000
Pharmos Corp*~ 713,005 1,804,794
Rhone-Poulenc Rorer 425,000 26,350,000
Sandoz AG Registered Shrs 24,700 26,908,638
Shaman Pharmaceuticals* 166,667 1,187,502
Sparta Pharmaceuticals*^~ 500,000 1,518,750
Titan Pharmaceuticals*^~ 488,215 3,295,451
Vical Inc* 275,000 4,142,188
Watson Pharmaceuticals* 310,100 14,729,750
-------------
369,420,091
-------------
MEDICAL SERVICES 9.19%
Medical Associates of America*^~ 502,935 1
Omnicare Inc 535,000 32,100,000
PAREXEL International* 316,300 15,577,775
PhyCor Inc* 360,000 17,730,000
Quintiles Transnational* 320,000 23,440,000
RoTech Medical* 162,000 $ 6,723,000
Total Renal Care Holdings* 475,000 18,168,750
-------------
113,739,526
-------------
TOTAL COMMON STOCKS & WARRANTS
(Cost $855,145,442) 1,162,442,186
-------------
PREFERRED STOCKS 1.38%
BIOTECHNOLOGY 0.92%
Cambridge Heart, Series A Conv Pfd*^~ 1,200,000 1,800,000
Ingenex Inc, Series B Pfd*^~ 103,055 600,000
Janus Biomedical, Series A Conv Pfd*^ 400,000 1,000,000
MedClone Inc, Series G Conv Pfd*^ 581,396 348,838
Multum Information Services Series C Pfd*^~ 571,429 1,468,573
OrbTek Inc, Series A Conv Pfd*^ 476,190 999,999
Osiris Therapeutics, Series C Conv Pfd*^ 382,353 1,300,000
Physicians Online, Series A Conv Pfd*^ 361,350 3,219,629
Unisyn Technologies Series A Conv Pfd*^ 359,501 359,501
Series B Conv Pfd*^ 250,500 250,500
-------------
11,347,040
-------------
<PAGE>
MEDICAL PRODUCTS 0.05%
Clarus Medical Systems Series I Conv Pfd*^~ 106,664 533,320
Series II Conv Pfd*^~ 22,239 111,195
-------------
644,515
-------------
MEDICAL SERVICES 0.41%
Advanced Health Series A Conv Pfd*^ 485,900 3,187,504
Series B Conv Pfd*^ 282,900 1,892,601
-------------
5,080,105
-------------
TOTAL PREFERRED STOCKS (Cost $12,833,491) 17,071,660
-------------
FIXED INCOME SECURITIES 0.01%
BIOTECHNOLOGY 0.01%
MedClone Inc 10.000%, Promissory Notes*^** 73,680 73,680
-------------
MEDICAL SERVICES 0.00%
Medical Associates of America
Conv Sr Notes 7.000%, 2/28/1999*^~>> 1,689,904 100
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $1,763,584) 73,780
-------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 4.70%
FINANCE RELATED 4.70%
Chevron Oil Finance 5.330%, 5/1/1996 28,174,000 28,174,000
Sears Roebuck Acceptance
5.310%, 5/1/1996 30,000,000 30,000,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $58,174,000) 58,174,000
-------------
TOTAL INVESTMENT SECURITIES AT VALUE
100.00% (Cost $927,916,517) (Cost for
Income Tax Purposes $928,223,292) 1,237,761,626
=============
LEISURE Portfolio
COMMON STOCKS 82.42%
ADVERTISING 4.56%
Cordiant PLC* UK 1,850,000 3,747,748
Eagle River Interactive* 20,000 430,000
Heritage Media Class A* 95,200 3,653,300
Katz Media Group* 105,500 1,556,125
Omnicom Group 55,000 2,385,625
WPP Group PLC UK 525,000 1,607,143
-------------
13,379,941
-------------
<PAGE>
AUDIO/VIDEO RELATED 2.01%
Granada Group PLC UK 150,000 1,854,742
Harman International Industries 85,470 4,038,458
-------------
5,893,200
-------------
BROADCASTING 12.77%
Australis Media Ltd* AS 2,000,000 896,382
Belo (A H) Corp Class A 100,000 3,725,000
Central European Media
Enterprises Ltd Class A* BD 137,800 3,944,525
Evergreen Media Class A* 75,000 2,943,750
HTV Group PLC UK 100,000 552,221
Heftel Broadcasting Class A* 150,000 3,075,000
Lin Television* 192,000 6,384,000
Television Broadcasts Ltd HK 200,000 801,499
Television Broadcasts Ltd ADR^ HK 750,000 3,005,699
United Video Satellite Group Class A* 270,000 6,142,500
ValueVision International Class A* 500,000 3,937,500
Yorkshire-Tyne Tees Television
Holdings PLC UK 129,000 2,042,242
-------------
37,450,318
-------------
CABLE TELEVISION 7.12%
Comcast Cable Partners Ltd Class A* UK 100,000 1,325,000
Comcast Corp Special Class A 200,000 3,500,000
TCA Cable TV 100,000 2,925,000
Tele-Communications Inc -
Liberty Media Group Series A* 162,500 4,448,437
Tele-Communications Inc -
TCI Group Series A* 150,000 2,868,750
Tele-Communications
International Series A* 285,700 5,821,137
-------------
20,888,324
-------------
COMMERCIAL SERVICES 0.66%
Sylvan Learning Systems* 50,000 1,937,500
-------------
COMPUTER SOFTWARE 1.50%
Sierra On-Line* 112,200 4,403,850
-------------
FINANCE RELATED 2.82%
Block (H & R) Inc 75,000 2,634,375
Sotheby's Holdings Class A 400,000 5,650,000
-------------
8,284,375
-------------
FOOD PRODUCTS & BEVERAGES 1.93%
Seagram Co Ltd CA 167,000 5,657,125
-------------
<PAGE>
GAMING 11.08%
Bally Entertainment* 100,000 2,087,500
Circus Circus Enterprises* 150,000 5,512,500
Crown Ltd* AS 283,440 581,688
Grand Casinos* 150,000 4,856,250
Harrah's Entertainment* 142,600 4,919,700
Hollywood Park* 50,000 481,250
MGM Grand* 100,000 4,362,500
Players International* 214,500 2,439,937
Stratosphere Corp* 125,000 1,359,375
Trump Hotels & Casino Resorts* 182,200 5,898,725
-------------
32,499,425
-------------
HOTELS 3.93%
Bristol Hotel* 59,400 1,744,875
Extended Stay America* 40,000 1,040,000
HFS Inc* 23,600 1,212,450
Hilton Hotels 30,000 3,165,000
Studio Plus Hotels* 157,500 4,370,625
-------------
11,532,950
-------------
MEDICAL EQUIPMENT & SUPPLIES 0.90%
Bausch & Lomb 66,000 2,631,750
-------------
MOTION PICTURES & TELEVISION 9.87%
Amalgamated Holdings Ltd AS 164,727 2,681,164
Disney (Walt) Co 116,233 7,206,446
Gaylord Entertainment Class A 111,485 2,954,352
King World Productions* 70,000 3,045,000
Turner Broadcasting Systems Class B 360,000 9,720,000
Viacom Inc Class A* 13,040 521,600
Class B* 68,802 2,820,882
-------------
28,949,444
-------------
PRINTING & PUBLISHING 7.01%
Harcourt General 144,000 6,336,000
McGraw-Hill Inc 150,000 6,618,750
News Corp Ltd ADR AS 120,000 2,820,000
Pearson PLC UK 50,000 529,712
Times Mirror Series A 100,000 4,262,500
-------------
20,566,962
-------------
RECREATION PRODUCTS & SERVICES 4.37%
Anthony Industries 150,000 4,275,000
Carnival Corp Class A 110,000 3,190,000
Nintendo Corp Ltd JA 20,000 1,527,360
Salomon SA FR 5,500 3,824,390
-------------
12,816,750
-------------
<PAGE>
RETAIL 6.44%
IHOP Corp* 125,000 3,562,500
Landry's Seafood Restaurants* 240,000 5,640,000
Planet Hollywood International* 35,000 888,125
Rite Aid 200,000 5,925,000
Talbots Inc 100,000 2,875,000
-------------
18,890,625
-------------
TELECOMMUNICATIONS 1.26%
Rogers Cantel Mobile
Communications Class B* CA 100,000 2,700,000
Rogers Communications Class B* CA 100,000 998,931
-------------
3,698,931
-------------
TEXTILES & APPAREL MANUFACTURERS 0.80%
adidas AG Sponsored ADR*^ GM 62,000 2,355,039
-------------
TOBACCO 0.94%
PT HM Sampoerna Foreign Shrs ID 250,000 2,761,687
-------------
UTILITIES 2.45%
US WEST Communications Group 100,000 3,275,000
US WEST Media Group* 200,000 3,900,000
-------------
7,175,000
-------------
TOTAL COMMON STOCKS
(Cost $199,356,985) 241,773,196
-------------
PREFERRED STOCKS 1.79%
MOTION PICTURES & TELEVISION 0.27%
Village Roadshow Ltd, Pfd AS 250,000 786,300
-------------
PRINTING & PUBLISHING 1.52%
News Corp Ltd Sponsored
ADR Representing Ltd
Voting Preference Shrs 120,000 2,445,000
Times Mirror, Series B Pfd 75,000 2,015,625
-------------
4,460,625
-------------
TOTAL PREFERRED STOCKS
(Cost $4,924,437) 5,246,925
-------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 15.79%
FINANCE RELATED 15.79%
Associates Corp of North America
5.340%, 5/1/1996 8,980,000 8,980,000
Chevron Oil Finance
5.250%, 5/1/1996 13,380,000 13,380,000
<PAGE>
Ford Motor Credit
5.200%, 5/3/1996 12,234,000 12,234,000
Sears Roebuck Acceptance
5.270%, 5/6/1996 11,716,000 11,716,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $46,310,000) 46,310,000
-------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $250,591,422)
(Cost for Income Tax Purposes
$250,641,922) 293,330,121
=============
TECHNOLOGY Portfolio
COMMON STOCKS 78.27%
BIOTECHNOLOGY 2.20%
Amgen Inc* 100,000 5,750,000
Biochem Pharma* 75,000 3,412,500
Neurogen Corp* 105,400 3,017,075
Sangstat Medical* 200,000 3,350,000
-------------
15,529,575
-------------
BROADCASTING 0.00%
Future Communications*~ 160,000 1
CABLE TELEVISION 0.11%
Wireless One* 50,000 775,000
-------------
COMMERCIAL SERVICES 1.99%
ClinTrials Research* 75,000 3,150,000
Equifax Inc 400,000 9,800,000
Profit Recovery Group International* 40,000 795,000
Sterling Commerce* 9,100 318,500
-------------
14,063,500
-------------
COMPUTER GRAPHICS 1.75%
Cadence Design Systems* 187,500 9,796,875
Intergraph Corp* 200,000 2,537,500
-------------
12,334,375
-------------
COMPUTER LOCAL NETWORKS 2.17%
Apertus Technologies* 75,000 360,938
Cabletron Systems* 20,000 1,507,500
Cisco Systems* 50,000 2,593,750
Vanstar Corp* 800,000 10,900,000
-------------
15,362,188
-------------
<PAGE>
COMPUTER PERIPHERALS & SUPPLIES 5.57%
Adaptec Inc * 30,000 1,725,000
Data Translation* 60,000 1,455,000
Gandalf Technologies* 500,000 8,875,000
Intevac Inc* 82,500 1,289,062
Kentek Information Systems* 150,000 1,256,250
Seagate Technology* 157,600 9,140,800
Storage Technology* 100,000 3,075,000
US Robotics* 75,000 11,737,500
Voice Control Systems* 60,000 795,000
-------------
39,348,612
-------------
COMPUTER SERVICES 8.95%
Ceridian Corp* 250,000 11,937,500
CompuServe Corp* 101,500 2,892,750
Control Data Systems* 200,000 4,700,000
Data Dimensions* 55,000 2,117,500
DecisionOne Corp* 97,000 2,449,250
General Motors Class E 380,000 21,422,500
MICROS Systems* 150,000 4,275,000
National Data 227,750 8,028,187
Technology Solutions* 200,000 5,400,000
-------------
63,222,687
-------------
COMPUTER SOFTWARE 15.41%
Applied Voice Technology* 10,000 130,000
Ascend Communications* 25,000 1,537,500
Avant! Corp* 25,000 537,500
BMC Software* 150,000 9,131,250
Baan Co NV* 150,000 9,000,000
BARRA Inc* 25,000 831,250
Borland International* 200,000 3,275,000
Caere Corp* 25,000 240,625
Cellular Technical Services* 250,000 7,156,250
Cognos Inc* 100,000 6,775,000
Computer Associates International 100,000 7,337,500
Computer Horizons* 105,000 5,302,500
Computervision Corp* 150,000 1,818,750
Elcom International* 50,000 650,000
Epic Design Technology* 150,000 5,137,500
Geoworks* 50,000 1,875,000
Informix Corp* 50,000 1,318,750
Innovus Corp* 144,500 1,806,250
Keane Inc* 50,000 1,968,750
Lernout & Hauspie Speech Products NV* 100,000 4,175,000
MacNeal-Schwendler Corp 200,000 2,725,000
Microsoft Corp* 50,000 5,668,750
Netscape Communications* 40,000 2,440,000
Novadigm Inc* 50,000 975,000
Periphonics Corp* 50,000 1,125,000
Planning Sciences International
Sponsored ADR* 11,500 184,000
<PAGE>
Project Software & Development* 35,000 1,225,000
Sapient Corp* 6,500 342,875
Softkey International* 50,000 1,400,000
State Of The Art* 390,000 5,752,500
Sterling Software* 75,000 5,831,250
Sybase Inc* 50,000 1,368,750
VIASOFT Inc* 50,000 1,812,500
Wind River Systems* 200,000 7,800,000
Workgroup Technology* 9,200 241,500
-------------
108,896,500
-------------
COMPUTER SYSTEMS 3.22%
Comverse Technology* 400,000 9,350,000
Data General* 150,000 2,306,250
Discreet Logic* 116,900 1,943,462
Silicon Graphics* 25,000 740,625
VeriFone Inc* 200,000 8,400,000
-------------
22,740,337
-------------
ELECTRICAL EQUIPMENT 1.32%
Itron Inc* 158,300 9,300,125
-------------
ELECTRONICS 6.60%
Alpha Industries* 50,000 562,500
Computer Products* 150,000 2,428,125
Euphonixs Inc* 75,000 759,375
Jabil Circuit* 100,000 1,175,000
MEMC Electronic Materials* 500,000 24,937,500
Sanmina Holdings* 200,000 7,100,000
Sipex Corp* 40,000 820,000
Solectron Corp* 152,000 6,764,000
Universal Electronics* 200,000 2,100,000
-------------
46,646,500
-------------
FINANCE RELATED 4.05%
Block (H & R) Inc 150,000 5,268,750
First Data 300,000 22,800,000
First USA Paymentech* 12,900 561,150
-------------
28,629,900
-------------
MEDICAL PRODUCTS 0.52%
Corvita Corp* 200,000 2,037,500
Sepracor Inc* 115,000 1,610,000
-------------
3,647,500
-------------
<PAGE>
MEDICAL RELATED - DRUGS 1.85%
ALZA Corp* 200,000 5,700,000
Athena Neurosciences* 300,000 5,737,500
Titan Pharmaceuticals*^ 244,108 1,647,729
-------------
13,085,229
-------------
METALS & MINING 1.04%
Bre-X Minerals Ltd* 50,000 7,345,081
-------------
OFFICE EQUIPMENT 0.56%
In Focus Systems* 50,000 2,525,000
Xerox Corp 10,000 1,465,000
-------------
3,990,000
-------------
OIL & GAS RELATED 2.21%
Global Marine* 200,000 2,275,000
Halliburton Co 150,000 8,606,250
Petroleum Geo-Services A/S
Sponsored ADR* 150,000 4,743,750
-------------
15,625,000
-------------
PHOTO EQUIPMENT & SUPPLIES 1.27%
Polaroid Corp 200,000 9,000,000
-------------
PROTECTION - SAFETY EQUIPMENT
& SERVICES 1.91%
Lo-Jack Corp* 150,000 1,912,500
Pittway Corp Class A 242,700 11,588,925
-------------
13,501,425
-------------
RECREATION PRODUCTS & SERVICES 0.27%
Nintendo Corp Ltd 25,000 1,909,200
-------------
SCHOOLS 0.84%
National Education* 400,000 5,950,000
-------------
SCIENTIFIC INSTRUMENTS 1.38%
Thermo Electron 105,000 6,470,625
Thermo Instrument Systems* 100,000 3,300,000
-------------
9,770,625
-------------
SEMICONDUCTOR EQUIPMENT 0.13%
Intel Corp 10,000 677,500
TriQuint Semiconductor* 12,200 253,150
-------------
930,650
-------------
<PAGE>
SHIP BUILDING 0.41%
Avondale Industries* 150,000 2,868,750
-------------
TELECOMMUNICATIONS 10.15%
Andrew Corp* 65,000 3,120,000
Global Village Communication* 325,000 5,606,250
Harmonic Lightwaves* 200,000 2,825,000
Harris Corp Delaware 300,000 18,525,000
Lucent Technologies* 60,000 2,107,500
Newbridge Networks* 250,000 16,093,750
Northern Telecom Ltd 150,000 7,725,000
Octel Communications* 100,000 4,475,000
Orange PLC ADR* 60,000 1,080,000
Polycom Inc* 54,200 481,025
Scientific-Atlanta Inc 200,000 3,700,000
Tadiran Telecommunications Ltd* 100,000 1,456,250
WinStar Communications* 210,000 4,488,750
-------------
71,683,525
-------------
WHOLESALE 2.39%
Kent Electronics* 400,000 16,850,000
-------------
TOTAL COMMON STOCKS
(Cost $420,285,044) 553,006,285
-------------
PREFERRED STOCKS 0.17%
BIOTECHNOLOGY 0.04%
Ingenex Inc, Series B Pfd*^ 51,527 300,000
-------------
DIVERSIFIED COMPANIES 0.13%
Alpine Group, 9.000% Cum Conv Pfd*^ 1,000 900,000
-------------
TOTAL PREFERRED STOCKS
(Cost $1,300,000) 1,200,000
-------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 21.56%
FINANCE RELATED 17.67%
American Express Credit
5.240%, 5/1/1996 24,971,000 24,971,000
Ford Motor Credit
5.270%, 5/1/1996 28,973,000 28,973,000
General Electric Capital Services
5.230%, 5/2/1996 17,966,000 17,966,000
General Motors Acceptance
5.240%, 5/6/1996 26,535,895 26,516,583
Sears Roebuck Acceptance
5.260%, 5/3/1996 26,377,000 26,377,000
-------------
124,803,583
-------------
<PAGE>
MACHINERY 3.89%
Deere & Co
5.250%, 5/8/1996 27,496,000 27,496,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $152,299,583) 152,299,583
-------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $573,884,627)
(Cost for Income Tax Purposes
$574,185,427) 706,505,868
=============
UTILITIES Portfolio
COMMON STOCKS & RIGHTS 88.88%
AUDIO/VIDEO RELATED 2.79%
Granada Group PLC UK 300,000 3,709,483
-------------
BROADCASTING 5.01%
Scottish Television PLC UK 402,000 4,198,559
United Television 10,000 892,500
Yorkshire-Tyne Tees Television
Holdings PLC UK 100,000 1,583,133
-------------
6,674,192
-------------
CABLE TELEVISION 3.92%
Comcast Cable Partners Ltd* UK 162,000 2,146,500
Videotron Holdings PLC ADR* UK 162,000 3,078,000
-------------
5,224,500
-------------
CHEMICALS 0.48%
Agrium Inc CA 50,000 643,750
-------------
COMMERCIAL SERVICES 1.12%
Compagnie Generale des Eaux FR 13,700 1,487,147
-------------
ELECTRICAL EQUIPMENT 0.81%
Vertex Communications* 65,000 1,072,500
-------------
INSURANCE 0.62%
GCR Holdings Ltd 32,500 828,750
-------------
OIL & GAS RELATED 12.58%
Enron Corp 42,000 1,690,500
ENSERCH Corp 160,000 3,440,000
Forcenergy Gas Exploration
Rights*^ 9,342 0
Panaco Inc* 242,500 1,030,625
Panhandle Eastern 163,000 5,317,875
Petro-Canada represented by
Installment Receipts CA 188,000 1,316,000
<PAGE>
Sonat Inc 90,500 3,948,062
-------------
16,743,062
-------------
TELECOMMUNICATIONS 7.84%
AT&T Corp 43,600 2,670,500
Frontier Corp 70,000 2,213,750
Lucent Technologies* 69,500 2,441,187
MFS Communications* 26,300 912,281
Orange PLC ADR* UK 122,000 2,196,000
-------------
10,433,718
-------------
Utilities 53.71%
ELECTRIC 19.87%
Central Hudson Gas & Electric 20,000 580,000
Commonwealth Energy Systems SBI 100,350 4,603,556
Eastern Utilities Associates 170,000 3,463,750
IES Industries 140,000 3,710,000
Idaho Power 60,000 1,740,000
Interstate Power 33,900 1,038,188
Orange & Rockland Utilities 30,000 1,023,750
PacifiCorp 104,600 2,092,000
Public Service of Colorado 142,000 4,703,750
Rochester Gas & Electric 89,000 1,824,500
TNP Enterprises 70,200 1,667,250
-------------
26,446,744
-------------
GAS 4.39%
Chesapeake Utilities 59,400 1,039,500
Columbia Gas System* 58,000 2,820,250
Equitable Resources 33,000 998,250
New Jersey Resources 35,000 993,125
-------------
5,851,125
-------------
TELEPHONE 29.45%
ALLTEL Corp 114,000 3,747,750
Ameritech Corp 77,000 4,494,875
Bell Atlantic 66,000 4,290,000
BellSouth Corp 76,500 3,060,000
Century Telephone Enterprises 84,000 2,751,000
Cincinnati Bell 40,500 1,994,625
GTE Corp 34,000 1,474,750
NYNEX Corp 75,000 3,684,375
SBC Communications 23,000 1,150,000
Southern New England
Telecommunications 115,500 5,139,750
Sprint Corp 49,500 2,085,188
U S WEST Communications Group 162,800 5,331,700
-------------
39,204,013
-------------
TOTAL UTILITIES 71,501,882
-------------
<PAGE>
TOTAL COMMON STOCKS & RIGHTS
(Cost $106,708,064) 118,318,984
-------------
PREFERRED STOCKS 1.34%
UTILITIES - ELECTRIC 1.34%
Niagara Mohawk Power
9.500%, Series M Pfd
(Cost $1,668,501) 80,100 1,782,225
-------------
FIXED INCOME SECURITIES 4.38%
OIL & GAS RELATED 0.75%
Forcenergy Gas Exploration
Exch Conv Sub Notes^ 7.000%,
9/15/2000 1,000,000 1,000,000
UTILITIES - TELEPHONE 3.63%
Bell Telephone of Pennsylvania
Deb, 7.500%, 5/1/2013 3,000,000 2,927,289
GTE South, Deb
7.250%, 8/1/2002 1,000,000 1,013,981
GTE Southwest, Series A, Deb
5.820%, 12/1/1999 915,000 888,362
-------------
4,829,632
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $5,966,351) 5,829,632
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 5.40%
FINANCE RELATED 5.40%
American General Finance
5.350%, 5/1/1996 6,777,000 6,777,000
Associates Corp of North America
5.340%, 5/1/1996 415,000 415,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $7,192,000) 7,192,000
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $121,534,916)
Cost for Income Tax Purposes 121,542,197) 133,122,841
=============
<FN>
* Security is non-income producing.
@ Security has no market value at April 30, 1996.
# Also represents cost for income tax purposes.
~ Security is an affiliated company (See Note 5).
** Security is a defaulted security with respect to cumulative interest
payments of $5,792 at April 30, 1996.
> Security is a defaulted security with respect to cumulative interest
payments of $156,293 at April 30, 1996. The security has been devalued to
$100.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- ---------------------------------------------------------------------------------------------
Energy Portfolio
<S> <C> <C>
Forcenergy Gas Exploration, Exch
Conv Sub Notes
7.000%, 9/15/2000 9/16/93 $1,000,000 0.80%
Forcenergy Gas Exploration Rights 6/14/94 0 0.00
----------
0.80%
==========
Environmental Services Portfolio
Cyclean Inc Series D Pfd 3/16/94 500,000 0.00%
==========
Gold Portfolio
Canyon Resources Conv Sub Notes
6.000%, 6/1/1998 5/18/93 2,000,000 0.56%
==========
Health Sciences Portfolio
Advanced Health Series A Conv Pfd 8/31/93 48,590 0.26%
Series B Conv Pfd 3/16/94 2,000,103 0.15
Cambridge Heart Series A Conv Pfd 9/29/93 1,200,000 0.15
Cardiometrics Inc 3/16/93- 11/3/95 2,715,000 0.15
Clarus Medical Systems Series I
Conv Pfd 12/23/92 2,000,000 0.04
Series II Conv Pfd 5/3/95 111,196 0.01
Warrants 5/3/95 0 0.00
Crown Laboratories 8/24/93 1,200,000 0.09
Dura Pharmaceuticals Series W
Warrants 9/27/93 446,400 0.66
Ecogen Technologies I 11/18/92- 1/28/94 1,140,000 0.11
Electroscope Inc 4/27/93 787,500 0.06
Electroscope Inc Warrants 4/27/93 0 0.00
Ingenex Inc, Series B Pfd 9/27/94 600,000 0.05
Janus Biomedical Series A, Conv Pfd 3/2/94 1,000,000 0.08
Landec Corp 7/6/93 1,500,001 0.49
MedClone Inc 10.000%,
Promissory Notes 12/7/94- 6/29/95 73,680 0.01
Series G Conv Pfd 10/21/93 1,000,001 0.03
Warrants 10/21/93 0 0.00
Medical Associates of America
2/24/92 - 8/31/92 502,935 0.00
Medical Associates of America,
Conv Sr Notes 7.000%,
2/28/1999 2/21/92- 3/1/94 1,689,904 0.00%
Metra Biosystems 1/11/94- 4/23/96 2,712,501 0.34
Multum Information Services,
Series C Pfd 12/28/93 1,000,001 0.12
OrbTek Inc, Series A Conv Pfd 5/13/94 999,999 0.08
<PAGE>
Osiris Therapeutics Series C
Conv Pfd 5/26/94 1,300,000 0.11
Physicians Online Series A Conv Pfd 8/31/93 963,600 0.26
Sparta Pharmaceuticals 11/12/93 1,000,000 0.12
Titan Pharmaceuticals 7/19/94 2,000,035 0.27
Unisyn Technologies 2/28/94 1,500,000 0.00
Unisyn Technologies Series A
Conv Pfd 12/27/94 359,501 0.03
Series B Conv Pfd 2/5/96 250,500 0.02
Xenometrix Inc 1/7/94 1,400,000 0.08
----------
3.77%
==========
Leisure Portfolio
adidas AG Sponsored ADR 11/13/95 1,494,609 0.81%
Television Broadcasts Ltd
ADR 9/2/93- 2/13/95 2,654,121 1.04
----------
1.85%
==========
Technology Portfolio
Alpine Group 9.000%, Cum Conv Pfd 4/21/92 1,000,000 0.13%
Ingenex Inc Series B Pfd 9/27/94 300,000 0.04
Titan Pharmaceuticals 7/19/93 1,000,035 0.23
----------
0.40%
==========
Utilities Portfolio
Forcenergy Gas Exploration
Exch Conv Sub Notes
7.000%, 9/15/2000 9/16/93 1,000,000 0.75%
Forcenergy Gas
Exploration Rights 6/14/94 0 0.00
----------
0.75%
==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Summary of Investments by Country
% of
Country Investment
Country Code Securities Value
- ---------------------------------------------------------------------------------------------
Environmental Services Portfolio
<S> <C> <C>
Australia AS 0.42% $136,875
Canada CA 10.55 3,446,912
Finland FI 1.33 436,500
France FR 1.66 542,754
United Kingdom UK 1.39 455,000
United States US 84.65 27,667,927
-------------------------
100.00% $32,685,968
=========================
Gold Portfolio
Australia AS 4.30% $15,749,735
Canada CA 62.65 229,276,915
Cayman Island CJ 1.90 6,938,750
France FR 1.67 6,098,216
Ghana GH 1.79 6,562,500
Switzerland SZ 1.50 5,495,297
United States US 26.19 95,822,138
-------------------------
100.00% $365,943,551
=========================
Leisure Portfolio
Australia AS 2.65% $ 7,765,534
Bermuda BD 1.35 3,944,525
Canada CA 3.19 9,356,056
France FR 1.30 3,824,390
Germany GM 0.80 2,355,039
Hong Kong HK 1.30 3,807,198
Indonesia ID 0.94 2,761,687
Japan JA 0.52 1,527,360
United Kingdom UK 3.97 11,658,808
United States US 83.98 246,329,524
-------------------------
100.00% $293,330,121
=========================
Utilities Portfolio
Canada CA 1.47% $1,959,750
France FR 1.12 1,487,147
United Kingdom UK 12.70 16,911,675
United States US 84.71 112,764,269
-------------------------
100.00% $133,122,841
=========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities
April 30, 1996
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investment Securities:
At Cost~ $112,668,862 $29,054,056 $421,487,442 $275,764,441
===================================================================
At Value~ 123,136,840 32,685,968 454,707,725 365,943,551
Cash 292,522 5,867 185,718 381,189
Foreign Currency
(Cost $711,174, $0, $0 and $0,
respectively) 703,332 0 0 0
Receivables:
Investment Securities Sold 4,428,046 296,250 3,037,500 0
Fund Shares Sold 2,362,298 2,779,567 677,545 9,674,986
Dividends and Interest 83,626 22,990 608,077 349,785
Prepaid Expenses and Other Assets 41,125 61,781 71,246 73,216
-------------------------------------------------------------------
TOTAL ASSETS 131,047,789 35,852,423 459,287,811 376,422,727
-------------------------------------------------------------------
LIABILITIES
Payables:
Investment Securities Purchased 3,726,304 857,700 0 4,235,770
Fund Shares Repurchased 2,215,790 171,917 1,628,047 884,385
Accrued Expenses and Other Payables 5,139 2,875 16,535 25,539
-------------------------------------------------------------------
TOTAL LIABILITIES 5,947,233 1,032,492 1,644,582 5,145,694
-------------------------------------------------------------------
Net Assets at Value 125,100,556 34,819,931 457,643,229 371,277,033
===================================================================
NET ASSETS
Paid-in Capital* 110,582,614 31,857,263 371,080,904 283,673,128
Accumulated Undistributed Net
Investment Income (Loss) 190,116 125,499 2,966,606 (66,634)
<PAGE>
Accumulated Undistributed Net Realized
Gain (Loss) on Investment Securities
and Foreign Currency Transactions 3,867,690 (794,743) 50,375,436 (2,508,551)
Net Appreciation of Investment Securities
and Foreign Currency Transactions 10,460,136 3,631,912 33,220,283 90,179,090
-------------------------------------------------------------------
Net Assets at Value 125,100,556 34,819,931 457,643,229 371,277,033
===================================================================
Shares Outstanding 9,547,118 3,550,472 22,373,031 43,285,840
Net Asset Value, Offering and Redemption
Price per Share 13.10 9.81 20.46 8.58
===================================================================
<FN>
~ Investment securities at cost and value at April 30, 1996 include repurchase
agreements of $8,851,000 and $7,489,000 for Energy and Environmental Services
Portfolios, respectively.
* The Fund has one billion authorized shares of common stock, par value of $0.01
per share. Of such shares, 100 million have been allocated to each individual
Portfolio.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities (Continued)
April 30, 1996
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investment Securities:
At Cost $927,916,517 $250,591,422 $573,884,627 $121,534,916
===================================================================
At Value 1,237,761,626 293,330,121 706,505,868 133,122,841
Cash 748,551 35,273 122,456 2,334
Receivables:
Investment Securities Sold 6,578,869 2,366,164 4,718,126 2,534,875
Fund Shares Sold 3,432,970 512,240 3,539,224 93,457
Dividends and Interest 1,144,356 130,804 168,453 839,456
Prepaid Expenses and Other Assets 129,921 34,863 112,184 33,485
-------------------------------------------------------------------
TOTAL ASSETS 1,249,796,293 296,409,465 715,166,311 136,626,448
-------------------------------------------------------------------
LIABILITIES
Payables:
Distributions to Shareholders 0 0 0 51,908
Investment Securities Purchased 10,481,728 5,702,675 6,666,363 1,092,059
Fund Shares Repurchased 3,163,733 365,012 1,289,439 1,507,606
Accrued Expenses and Other Payables 36,145 19,309 18,174 11,486
-------------------------------------------------------------------
TOTAL LIABILITIES 13,681,606 6,086,996 7,973,976 2,663,059
-------------------------------------------------------------------
Net Assets at Value 1,236,114,687 290,322,469 707,192,335 133,963,389
===================================================================
NET ASSETS
Paid-in Capital* 842,000,030 243,654,748 522,059,310 118,054,973
Accumulated Undistributed Net
Investment Income 1,914,354 274,253 33,337 130,877
Accumulated Undistributed Net
Realized Gain on Investment
<PAGE>
Securities and Foreign Currency
Transactions 82,354,243 3,654,887 52,478,299 4,189,725
Net Appreciation of Invesment
Securities and Foreign Currency
Transactions 309,846,060 42,738,581 132,621,389 11,587,814
-------------------------------------------------------------------
Net Assets at Value 1,236,114,687 290,322,469 707,192,335 133,963,389
===================================================================
Shares Outstanding 21,321,929 12,229,069 21,631,115 11,305,515
Net Asset Value, Offering and Redemption
Price per Share 57.97 23.74 32.69 11.85
===================================================================
<FN>
* The Fund has one billion authorized shares of common stock, par value of $0.01
per share. Of such shares, 100 million have been allocated to each individual
Portfolio.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations
Six Months Ended April 30, 1996
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
INVESTMENT INCOME
INCOME
<S> <C> <C> <C> <C>
Dividends $477,739 $130,833 $5,675,458 $739,139
Interest 221,203 197,334 673,159 589,650
Foreign Taxes Withheld (8,467) (3,235) 0 (34,528)
-------------------------------------------------------------------
TOTAL INCOME 690,475 324,932 6,348,617 1,294,261
-------------------------------------------------------------------
EXPENSES
Investment Advisory Fees 293,936 104,696 1,673,709 907,417
Transfer Agent Fees 148,855 100,787 542,935 353,763
Administrative Fees 10,879 7,094 39,604 23,169
Custodian Fees and Expenses 17,098 5,585 41,277 39,589
Directors' Fees and Expenses 5,930 4,826 13,766 9,300
Professional Fees and Expenses 7,402 6,387 13,254 10,460
Registration Fees and Expenses 29,385 15,619 41,187 32,499
Reports to Shareholders 14,259 13,583 65,672 37,449
Other Expenses 4,958 1,923 17,032 9,272
-------------------------------------------------------------------
TOTAL EXPENSES 532,702 260,500 2,448,436 1,422,918
Fees and Expenses Absorbed by
Investment Adviser 0 (41,776) 0 0
Fees and Expenses Paid Indirectly (27,778) (9,331) (131,929) (54,407)
-------------------------------------------------------------------
NET EXPENSES 504,924 209,393 2,316,507 1,368,511
-------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 185,551 115,539 4,032,110 (74,250)
-------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities
<PAGE>
and Foreign Currency Transactions 8,584,194 1,981,490 50,380,557 12,797,795
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 10,825,339 3,095,593 3,750,194 106,312,618
-------------------------------------------------------------------
NET GAIN ON INVESTMENT SECURITIES 19,409,533 5,077,083 54,130,751 119,110,413
-------------------------------------------------------------------
Net Increase in Net Assets
from Operations 19,595,084 5,192,622 58,162,861 119,036,163
===================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations (Continued)
Six Months Ended April 30, 1996
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
INVESTMENT INCOME
INCOME
<S> <C> <C> <C> <C>
Dividends $3,172,994 $797,631 $1,218,385 $2,732,820
Interest 3,688,527 1,081,396 1,787,950 524,024
Foreign Taxes Withheld (136,284) (15,712) 0 (31,386)
-------------------------------------------------------------------
TOTAL INCOME 6,725,237 1,863,315 3,006,335 3,225,458
EXPENSES
Investment Advisory Fees 3,552,593 997,806 2,095,561 526,128
Transfer Agent Fees 1,045,290 487,285 722,792 207,146
Administrative Fees 87,636 24,956 49,339 15,523
Custodian Fees and Expenses 115,116 41,689 58,475 24,145
Directors' Fees and Expenses 25,422 11,169 18,260 7,558
Professional Fees and Expenses 25,423 11,337 16,078 8,646
Registration Fees and Expenses 70,679 21,261 61,836 23,928
Reports to Shareholders 132,421 62,445 95,082 27,446
Other Expenses 34,050 10,757 23,223 7,034
-------------------------------------------------------------------
TOTAL EXPENSES 5,088,630 1,668,705 3,140,646 847,554
Fees and Expenses Absorbed by
Investment Adviser 0 0 0 (63)
Fees and Expenses Paid Indirectly (289,599) (76,995) (174,344) (57,565)
-------------------------------------------------------------------
NET EXPENSES 4,799,031 1,591,710 2,966,302 789,926
-------------------------------------------------------------------
NET INVESTMENT INCOME 1,926,206 271,605 40,033 2,435,532
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securitiesand Foreign Currency
Transactions 83,125,502 3,710,111 53,183,769 8,032,414
<PAGE>
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 139,873,905 32,319,031 31,026,003 6,826,867
-------------------------------------------------------------------
NET GAIN ON INVESTMENT SECURITIES 222,999,407 36,029,142 84,209,772 14,859,281
-------------------------------------------------------------------
Net Increase in Net Assets
from Operations 224,925,613 36,300,747 84,249,805 17,294,813
===================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Energy Environmental Services Financial Services
Portfolio Portfolio Portfolio
-------------------------- -------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30 October 31 April 30 October 31 April 30 October 31
-------------------------- -------------------------- --------------------------
1996 1995 1996 1995 1996 1995
UNAUDITED UNAUDITED UNAUDITED
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $185,551 $436,226 $115,539 $202,824 $4,032,110 $5,986,155
Net Realized Gain (Loss)
on Investment Securities and
Foreign Currency Transactions 8,584,194 (651,948) 1,981,490 9,733,774 50,380,557 28,781,212
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions 10,825,339 (2,001,837) 3,095,593 (1,928,995) 3,750,194 26,811,946
-------------------------- -------------------------- --------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS 19,595,084 (2,217,559) 5,192,622 8,007,603 58,162,861 61,579,313
-------------------------- -------------------------- --------------------------
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income 0 (430,850) 0 (210,661) (1,071,320) (5,997,327)
Net Realized Gain on
Investment Securities 0 0 0 0 (24,567,826) 0
-------------------------- -------------------------- --------------------------
TOTAL DISTRIBUTIONS 0 (430,850) 0 (210,661) (25,639,146) (5,997,327)
-------------------------- -------------------------- --------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 330,183,555 254,345,190 52,466,617 104,904,724 366,534,798 520,541,107
Reinvestment of Distributions 0 415,572 0 205,670 24,681,418 5,760,531
-------------------------- -------------------------- --------------------------
<PAGE>
330,183,555 254,760,762 52,466,617 105,110,394 391,216,216 526,301,638
Amounts Paid for Repurchases
of Shares (272,961,685) (277,595,492) (45,595,259) (119,427,501) (376,145,018) (438,005,806)
-------------------------- -------------------------- --------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS 57,221,870 (22,834,730) 6,871,358 (14,317,107) 15,071,198 88,295,832
-------------------------- -------------------------- --------------------------
Total Increase (Decrease)
in Net Assets 76,816,954 (25,483,139) 12,063,980 (6,520,165) 47,594,913 143,877,818
NET ASSETS
Beginning of Period 48,283,602 73,766,741 22,755,951 29,276,116 410,048,316 266,170,498
-------------------------- -------------------------- --------------------------
End of Period 125,100,556 48,283,602 34,819,931 22,755,951 457,643,229 410,048,316
========================== ========================== ==========================
Accumulated Undistributed Net
Investment Income Included
in Net Assets at End of Period 190,116 4,565 125,499 9,960 2,966,606 5,816
FUND SHARE TRANSACTIONS
Shares Sold 28,958,688 25,336,363 5,814,931 14,163,882 18,290,069 29,961,166
Shares Issued from Reinvestment
of Distributions 0 41,187 0 25,328 1,297,661 317,403
-------------------------- -------------------------- --------------------------
28,958,688 25,377,550 5,814,931 14,189,210 19,587,730 30,278,569
Shares Repurchased (24,198,839) (27,437,686) (5,065,314) (15,890,903) (18,850,388) (26,025,023)
-------------------------- -------------------------- --------------------------
Net Increase (Decrease) in
Fund Shares 4,759,849 (2,060,136) 749,617 (1,701,693) 737,342 4,253,546
========================== ========================== ==========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Gold Health Sciences Leisure
Portfolio Portfolio Portfolio
-------------------------- ----------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30 October 31 April 30 October 31 April 30 October 31
-------------------------- ----------------------------- --------------------------
1996 1995 1996 1995 1996 1995
UNAUDITED UNAUDITED UNAUDITED
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) $ (74,250) $ 273,946 $ 1,926,206 $ (451,769) $ 271,605 $ 860,862
Net Realized Gain (Loss)
on Investment Securities and
Foreign Currency Transactions 12,797,795 (9,619,639) 83,125,502 85,687,476 3,710,111 33,968,704
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign Currency
Transactions 106,312,618 (12,084,161) 139,873,905 135,563,223 32,319,031 (8,985,890)
--------------------------- ----------------------------- ----------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS 119,036,163 (21,429,854) 224,925,613 220,798,930 36,300,747 25,843,676
--------------------------- ----------------------------- ----------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income 0 (262,208) 0 0 0 (860,862)
In Excess of Net Investment Income 0 0 0 0 0 (63,967)
Net Realized Gain on Investment
Securities 0 0 (73,234,704) 0 (33,837,031) (10,878,825)
--------------------------- ----------------------------- ----------------------------
TOTAL DISTRIBUTIONS 0 (262,208) (73,234,704) 0 (33,837,031) (11,803,654)
--------------------------- ----------------------------- ----------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 578,221,443 391,054,681 777,389,809 857,581,666 115,182,383 174,159,525
Reinvestment of Distributions 0 253,356 70,543,790 0 32,769,846 11,479,280
--------------------------- ----------------------------- ----------------------------
578,221,443 391,308,037 847,933,599 857,581,666 147,952,229 185,638,805
Amounts Paid for Repurchases
of Shares (477,759,569) (489,000,464) (624,435,629) (691,380,383) (125,274,040) (217,147,233)
--------------------------- ----------------------------- ----------------------------
<PAGE>
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS 100,461,874 (97,692,427) 223,497,970 166,201,283 22,678,189 (31,508,428)
--------------------------- ----------------------------- ----------------------------
Total Increase (Decrease)
in Net Assets 219,498,037 (119,384,489) 375,188,879 387,000,213 25,141,905 (17,468,406)
NET ASSETS
Beginning of Period 151,778,996 271,163,485 860,925,808 473,925,595 265,180,564 282,648,970
--------------------------- ----------------------------- ----------------------------
End of Period $371,277,033 $151,778,996 $1,236,114,687 $860,925,808 $290,322,469 $265,180,564
=========================== ============================= ============================
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets at
End of Period $ (66,634) $ 7,616 $ 1,914,354 $ (11,852) $ 274,253 $ 2,648
FUND SHARE TRANSACTIONS
Shares Sold 82,853,917 78,351,361 14,347,912 20,481,654 5,059,870 7,569,986
Shares Issued from Reinvestment
of Distributions 0 48,628 1,347,581 0 1,536,329 536,677
--------------------------- ----------------------------- ----------------------------
82,853,917 78,399,989 15,695,493 20,481,654 6,596,199 8,106,663
Shares Repurchased (68,706,994) (97,024,464) (11,430,070) (16,931,693) (5,518,447) (9,443,709)
--------------------------- ----------------------------- ----------------------------
Net Increase (Decrease) in
Fund Shares 14,146,923 (18,624,475) 4,265,423 3,549,961 1,077,752 (1,337,046)
=========================== ============================= ============================
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Technology Utilities
Portfolio Portfolio
-------------------------- --------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30 October 31 April 30 October 31
-------------------------- --------------------------
1996 1995 1996 1995
UNAUDITED UNAUDITED
OPERATIONS
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $40,033 $(285,996) $2,435,532 $5,678,806
Net Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions 53,183,769 96,331,634 8,032,414 (971,514)
Change in Net Appreciation of Investment
Securities and Foreign Currency
Transactions 31,026,003 64,454,697 6,826,867 11,041,948
-------------------------- --------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 84,249,805 160,500,335 17,294,813 15,749,240
-------------------------- --------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 0 (2,435,073) (5,546,736)
Net Realized Gain on Investment Securities (96,096,680) (10,002,886) 0 0
-------------------------- --------------------------
TOTAL DISTRIBUTIONS (96,096,680) (10,002,886) (2,435,073) (5,546,736)
-------------------------- --------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 565,112,110 952,121,237 113,087,961 165,131,684
Reinvestment of Distributions 93,175,687 9,719,957 2,327,754 5,277,145
-------------------------- --------------------------
658,287,797 961,841,194 115,415,715 170,408,829
Amounts Paid for Repurchases of Shares (502,357,355) (876,489,871) (130,779,567) (185,722,491)
-------------------------- --------------------------
NET INCREASE (DECREASE) IN NET
<PAGE>
ASSETS FROM FUND SHARE
TRANSACTIONS 155,930,442 85,351,323 (15,363,852) (15,313,662)
-------------------------- --------------------------
Total Increase (Decrease) in Net Assets 144,083,567 235,848,772 (504,112) (5,111,158)
NET ASSETS
Beginning of Period 563,108,768 327,259,996 134,467,501 139,578,659
-------------------------- --------------------------
End of Period 707,192,335 563,108,768 133,963,389 134,467,501
========================== ==========================
Accumulated Undistributed Net
Investment Income (Loss) Included
in Net Assets at End of Period 33,337 (6,696) 130,877 130,418
FUND SHARE TRANSACTIONS
Shares Sold 18,220,637 33,572,713 10,020,580 16,608,991
Shares Issued from Reinvestment
of Distributions 3,192,075 404,324 202,459 530,647
-------------------------- --------------------------
21,412,712 33,977,037 10,223,039 17,139,638
Shares Repurchased (16,184,005) (30,697,802) (11,588,257) (18,770,917)
-------------------------- --------------------------
Net Increase (Decrease) in Fund Shares 5,228,707 3,279,235 (1,365,218) (1,631,279)
========================== ==========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Strategic
Portfolios, Inc. (the "Fund"), was incorporated in Maryland and presently
consists of eight separate Portfolios: Energy Portfolio, Environmental Services
Portfolio, Financial Services Portfolio, Gold Portfolio, Health Sciences
Portfolio, Leisure Portfolio, Technology Portfolio and Utilities Portfolio. The
investment objectives of the Portfolios are to seek capital appreciation through
investments in specific business sectors. Additionally, the Utilites Portfolio
seeks capital appreciation and income through investments in public utilities.
The Fund is registered under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION -- Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales
price in the market where such securities are primarily traded. If last
sales prices are not available, securities are valued at the highest
closing bid price obtained from one or more dealers making a market for
such securities or by a pricing service approved by the Fund's board of
directors.
Debt securities are valued at evaluated bid prices as determined by
a pricing service approved by the Fund's board of directors. If evaluated
bid prices are not available, debt securities are valued by averaging the
bid prices obtained from one or more dealers making a market for such
securities.
Foreign securities are valued at the closing price on the principal
stock exchange on which they are traded. In the event that closing prices
are not available for foreign securities, prices will be obtained from the
principal stock exchange at or prior to the close of the New York Stock
Exchange. Foreign currency exchange rates are determined daily prior to
the close of the New York Stock Exchange.
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith
by the Fund's board of directors. Restricted securities are valued in
accordance with procedures established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which
approximates market value) if maturity is 60 days or less at the time of
purchase, or market value if maturity is greater than 60 days.
B. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to
ensure its market value exceeds the current market value of the repurchase
agreements including accrued interest.
<PAGE>
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the
dividend if such information is obtained subsequent to the ex-dividend
date. Interest income, which may be comprised of stated coupon rate,
market discount and original issue discount, is recorded on the accrual
basis. Discounts on debt securities purchased are amortized over the life
of the respective security as adjustments to interest income. Cost is
determined on the specific identification basis.
The Fund may have elements of risk due to concentrated investments
in specific industries or investments in foreign issuers located in a
specific country. Such concentrations may subject the Fund to additional
risks resulting from future political or economic conditions and/or
possible impositions of adverse foreign governmental laws or currency
exchange restrictions. Net realized and unrealized gain or loss from
investments includes fluctuations from currency exchange rates and
fluctuations in market value.
The Environmental Services Portfolio may have elements of risk due
to concentrated investments in the environmental services industry.
Investments in environmental services companies may be affected by
regulations imposed by various federal and state authorities, including
the Environmental Protection Agency and its affiliates. In addition, some
of these companies may have certain liability risks as a result of the
products or services they provide.
Restricted securities held by the Fund may not be sold except in
exempt transactions or in a public offering registered under the
Securities Act of 1933. The risk of investing in such securities is
generally greater than the risk of investing in the securities of widely
held, publicly traded companies. Lack of a secondary market and resale
restrictions may result in the inability of each Portfolio to sell a
security at a fair price and may substantially delay the sale of the
security which each Portfolio seeks to sell. In addition, these securities
may exhibit greater price volatility than securities for which secondary
markets exist.
D. FEDERAL AND STATE TAXES -- The Fund has complied and continues to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make
sufficient distributions of net investment income and net realized capital
gains, if any, to relieve it from all federal and state income taxes and
federal excise taxes. At October 31, 1995, net capital loss carryovers and
their expiration dates were as follows:
Expires October 31
Portfolio 2000 2002 2003
- --------------------------------------------------------------------------------
Energy Portfolio $1,121,598 $2,986,299 $346,524
Environmental Services Portfolio 0 2,731,233 0
Gold Portfolio 4,766,360 0 10,650,763
Utilities Portfolio 0 2,578,763 1,225,094
<PAGE>
Net capital loss carryovers utilized in 1995 by the Environmental
Services, Financial Services and Health Sciences Portfolios amounted to
$9,682,944, $4,226,773 and $12,666,165, respectively. To the extent future
capital gains are offset by capital loss carryovers, such gains will not
be distributed to shareholders.
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for federal
income tax purposes, taxable as ordinary income to shareholders.
Investment income received from foreign sources may be subject to
foreign withholding taxes. Dividend and interest income is shown gross of
foreign withholding taxes in the accompanying financial statements.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions
to shareholders are recorded by the Fund on the ex- dividend/distribution
date. The Fund distributes net realized capital gains, if any, to its
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for foreign currency transactions, nontaxable
dividends, net operating losses and expired capital loss carryforwards.
F. EXPENSES -- Each of the Portfolios bears expenses incurred specifically on
its behalf and, in addition, each Portfolio bears a portion of general
expenses, based on the relative net assets of each Portfolio.
Under an agreement between each Portfolio and the Fund's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by
the Custodian from any temporarily uninvested cash. Similarly, Other
Expenses, which include Pricing Expenses, and Transfer Agent Fees are
reduced by credits earned by each Portfolio from security brokerage
transactions under certain broker/service arrangements with third parties.
Such credits are included in Fees and Expenses Paid Indirectly in the
Statement of Operations.
For the six months ended April 30, 1996, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Transfer Other
Portfolio and Expenses Agent Fees Expenses
- ---------------------------------------------------------------------------
Energy Portfolio $8,116 $19,036 $626
Environmental Services Portfolio 3,585 5,358 388
Financial Services Portfolio 24,433 106,786 710
Gold Portfolio 0 54,086 321
Health Sciences Portfolio 81,459 206,700 1,440
Leisure Portfolio 20,822 55,835 338
Technology Portfolio 37,542 135,416 1,386
Utilities Portfolio 16,717 39,696 1,152
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Fund's investment adviser. As compensation for its
services to the Fund, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee for each Portfolio is
based on the annual rate of 0.75% on the first $350 million of average net
assets; reduced to 0.65% on the next $350 million of average net assets; and
0.55% on average net assets in excess of $700 million. Effective May 1, 1996,
IFG voluntarily agreed to waive a portion of its fee which exceeds 0.45% on the
average net assets in excess of $2 billion, 0.40% on the average net assets in
excess of $4 billion, and 0.35% on the average net assets in excess of $10
billion.
<PAGE>
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of each
Portfolio are made by ITC. Fees for such sub-advisory services are paid by IFG.
In accordance with an Administrative Agreement, each Portfolio pays IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.015% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG receives a transfer agent fee at an annual rate of $14.00 per
shareholder account, or per participant in an omnibus account. IFG may pay such
fee for participants in omnibus accounts to affiliates or third parties. The fee
is paid monthly at one-twelfth of the annual fee and is based upon the actual
number of accounts in existence during each month. As of May 1, 1996, the
transfer agent fee became $20.00 per shareholder account, or per participant in
an omnibus account, per year, computed in a manner similar to the previous fee.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by the Environmental Services and Utilities Portfolios.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
April 30, 1996, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were as follows:
Portfolio Purchases Sales
- ---------------------------------------------------------------------------
Energy Portfolio $217,291,512 $165,875,060
Environmental Services Portfolio 13,797,307 11,901,191
Financial Services Portfolio 326,070,952 317,361,643
Gold Portfolio 216,856,056 125,760,582
Health Sciences Portfolio 597,568,648 328,057,224
Leisure Portfolio 82,681,050 93,685,223
Technology Portfolio 424,764,274 482,714,954
Utilities Portfolio 117,302,879 131,708,339
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities for the Utilities Portfolio were $0 and $2,500,000, respectively.
There were no purchases or sales of U.S. Government securities in any other
Portfolio.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At April 30, 1996, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation by Portfolio were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Portfolio Appreciation Depreciation Appreciation
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy Portfolio $10,920,893 $1,115,045 $9,805,848
Environmental Services Portfolio 4,174,886 542,974 3,631,912
Financial Services Portfolio 37,259,895 4,039,612 33,220,283
Gold Portfolio 100,965,999 11,221,867 89,744,132
Health Sciences Portfolio 331,570,488 22,032,154 309,538,334
Leisure Portfolio 48,212,891 5,524,692 42,688,199
Technology Portfolio 144,445,320 12,124,879 132,320,441
Utilities Portfolio 13,528,635 1,947,991 11,580,644
</TABLE>
<PAGE>
NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of the
Fund's officers and directors are also officers and directors of IFG or ITC.
The Fund has adopted an unfunded noncontributory defined benefit pension
plan covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 25% of the retainer fee at
the time of retirement. As of July 1, 1996, benefits will be based on an annual
rate of 40% of the retainer fee at the time of retirement.
Pension expenses for the six months ended April 30, 1996, included in
Directors' Fees and Expenses in the Statement of Operations, and unfunded
accrued pension costs and pension liability included in Prepaid Expenses and
Accrued Expenses, respectively, in the Statement of Assets and Liabilities were
as follows:
Unfunded
Pension Accrued Pension
Portfolio Expenses Pension Costs Liability
- -----------------------------------------------------------------------------
Energy Portfolio $ 306 $ 1,949 $ 3,878
Environmental Services Portfolio 152 878 1,774
Financial Services Portfolio 2,093 6,628 15,271
Gold Portfolio 1,102 10,567 19,913
Health Sciences Portfolio 4,369 11,148 27,368
Leisure Portfolio 1,549 7,743 16,062
Technology Portfolio 3,114 5,359 15,169
Utilities Portfolio 740 3,802 7,846
An affiliated company represents ownership by the Portfolio of at least 5%
of the voting securities of the issuer during the period, as defined in the Act.
A summary of the transactions during the six months ended April 30, 1996, in
which the issuer was an affiliate of the Portfolio, is as follows:
<TABLE>
<CAPTION>
Purchases Sales Realized
---------------------- ------------------ Gain/(Loss) Value
Affiliate Shares Cost Shares Cost on Investments at 4/30/96
- --------------------------------------------------------------------------------------------
Gold Portfolio
<S> <C> <C> <C> <C> <C> <C>
Arequipa Resources 754,000 $7,007,602 - - - $21,814,893
Crown Resources - - - - - 5,400,000
Goldbelt Resources 2,000,000 1,778,000 - - - 2,410,348
Golden Star Resources - - 50,500 $206,532 $270,172 24,337,500
International Capri
Resources 35,000 35,518 - - - 958,533
Loki Gold - - - - - 4,084,231
MK Gold - - 350,000 2,100,000 (1,314,675) 2,250,000
Texas T Resources 400,000 903,520 - - - 719,818
Trillion Resources - - - - - 2,585,057
Health Sciences Portfolio
Arris Pharmaceutical 611,000 7,943,000 - - - 9,470,500
Biogen Inc 284,000 18,850,060 - - - 18,708,500
Cambridge Heart
Series A Conv Pfd - - - - - 1,800,000
Clarus Medical Systems
Series I Conv Pfd - - - - - 533,320
Series II Conv Pfd - - - - - 111,195
Warrants - - - - - 0
Crown Laboratories - - - - - 1,089,827
Ecogen Technologies I - - - - - 1,320,000
Electroscope Inc - - - - - 787,500
Electroscope Inc
Warrants - - - - - 0
Emisphere Technologies - - - - - 6,625,000
Home Health Corp
of America 500,000 3,750,000 - - - 6,500,000
<PAGE>
Ingenex Inc
Series B Pfd - - - - - 600,000
Landec Corp - - - - - 6,105,863
Medical Associates
of America - - - - - 1
Multum Information
Services Series C Pfd - - - - - 1,468,573
Pharmos Corp - - - - - 1,804,794
ResMed Inc - - - - - 5,562,500
Sparta Pharmaceuticals - - - - - 1,518,750
Titan Pharmaceuticals - - - - - 3,295,451
Xenometrix Inc - - - - - 942,115
Technology Portfolio
Future Communications - - - - - 1
</TABLE>
No dividend income was received from any affiliated companies.
<PAGE>
NOTE 6 -- LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Portfolio. Each Portfolio agrees to pay annual fees and interest on the unpaid
principal balance based on prevailing market rates as defined in the agreement.
For the six months ended April 30, 1996, there were no such borrowings.
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Energy Portfolio
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $10.09 $10.77 $11.53 $9.14 $11.28 $12.06
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.09 0.06 0.13 0.05 0.09
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.99 (0.68) (0.76) 2.36 (2.17) (0.76)
------------ ----------------------------------------------------------------------
Total from Investment
Operations 3.01 (0.59) (0.70) 2.49 (2.12) (0.67)
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.00 0.09 0.06 0.10 0.02 0.11
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 13.10 10.09 10.77 11.53 9.14 11.28
============ ======================================================================
TOTAL RETURN 29.83%* (5.45%) (6.04%) 27.18% (18.74%) (5.55%)
RATIOS
Net Assets - End of Period
($000 Omitted) 125,101 48,284 73,767 50,272 17,048 12,130
Ratio of Expenses to Average
Net Assets 0.68%*@ 1.53%@ 1.35% 1.18% 1.73% 1.69%
Ratio of Net Investment Income
to Average Net Assets 0.24%* 0.72% 0.65% 0.86% 0.32% 0.83%
Portfolio Turnover Rate 229%* 300% 123% 190% 370% 337%
<PAGE>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Financial Services Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $18.95 $15.31 $20.28 $15.28 $14.67 $7.19
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.18 0.29 0.29 0.24 0.20 0.10
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.52 3.64 (0.66) 5.00 1.52 7.56
Total from Investment Operations 2.70 3.93 (0.37) 5.24 1.72 7.66
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.05 0.29 0.29 0.24 0.20 0.08
Distributions from Capital Gains 1.14 0.00 4.31 0.00 0.91 0.10
------------ ----------------------------------------------------------------------
Total Distributions 1.19 0.29 4.60 0.24 1.11 0.18
------------ ----------------------------------------------------------------------
Net Asset Value -
End of Period 20.46 18.95 15.31 20.28 15.28 14.67
============ ======================================================================
TOTAL RETURN 14.75%* 25.80% (2.24%) 34.33% 11.74% 106.63%
RATIOS
Net Assets -End of Period
($000 Omitted) 457,643 410,048 266,170 384,131 189,708 95,144
Ratio of Expenses to
Average Net Assets 0.53%*@ 1.26%@ 1.18% 1.03% 1.07% 1.13%
Ratio of Net Investment Income
to Average Net Assets 0.87%* 2.10% 1.66% 1.16% 1.28% 1.76%
Portfolio Turnover Rate 72%* 171% 88% 236% 208% 249%
<FN>
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Portfolio, which is before any expense
offset arrangements.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Gold Portfolio<
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $5.21 $5.68 $6.23 $3.99 $4.26 $4.29
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.00 0.01 (0.02) (0.01) (0.01) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.37 (0.47) (0.53) 2.25 (0.26) (0.02)
------------ ----------------------------------------------------------------------
Total from Investment Operations 3.37 (0.46) (0.55) 2.24 (0.27) (0.03)
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.01 0.00 0.00 0.00 0.00
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 8.58 5.21 5.68 6.23 3.99 4.26
============ ======================================================================
TOTAL RETURN 64.68%* (8.12%) (8.83%) 56.27% (6.51%) (0.51%)
RATIOS
Net Assets -End of Period
($000 Omitted) 371,277 151,779 271,163 292,940 46,212 46,383
Ratio of Expenses to
Average Net Assets 0.58%*@ 1.32%@ 1.07% 1.03% 1.41% 1.47%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.03%)* 0.13% (0.32%) (0.21%) (0.23%) (0.25%)
Portfolio Turnover Rate 53%* 72% 97% 142% 101% 43%
<PAGE>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Health Sciences Portfolio
PER SHARE DATA
Net Asset Value -
Beginning of Period $50.47 $35.09 $33.49 $35.65 $40.60 $20.61
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.09 (0.03) (0.24) (0.13) 0.11 0.14
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 11.42 15.41 1.84 (2.02) (4.52) 23.45
------------ ----------------------------------------------------------------------
Total from Investment Operations 11.51 15.38 1.60 (2.15) (4.41) 23.59
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.01 0.10 0.12
Distributions from Capital Gains+ 4.01 0.00 0.00 0.00 0.44 3.48
------------ ----------------------------------------------------------------------
Total Distributions 4.01 0.00 0.00 0.01 0.54 3.60
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 57.97 50.47 35.09 33.49 35.65 40.60
============ ======================================================================
TOTAL RETURN 23.66%* 43.83% 4.78% (6.01%) (10.86%) 114.54%
RATIOS
Net Assets - End of Period
($000 Omitted) 1,236,115 860,926 473,926 560,294 756,791 744,927
Ratio of Expenses to Average
Net Assets 0.46%*@ 1.15%@ 1.19% 1.16% 1.00% 1.03%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.17%* (0.08%) (0.57%) (0.34%) 0.26% 0.55%
Portfolio Turnover Rate 33%* 107% 80% 87% 91% 100%
<FN>
< The per share information for the Gold Portfolio for 1993 was computed based
on weighted average shares.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Portfolio, which is before any expense
offset arrangements.
+ For the year ended October 31, 1993, the Health Sciences Portfolio declared a
Capital Gain distribution which aggregated less than $0.01 on a per share basis.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Leisure Portfolio<
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
------------ ----------------------------------------------------------------------
Net Asset Value -
Beginning of Period $23.78 $22.63 $25.47 $16.29 $14.85 $10.14
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.02 0.08 (0.01) (0.02) (0.01) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.08 2.06 (0.94) 9.20 2.44 6.84
------------ ----------------------------------------------------------------------
Total from Investment Operations 3.10 2.14 (0.95) 9.18 2.43 6.83
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income+ 0.00 0.08 0.00 0.00 0.00 0.00
Distributions from Capital Gains 3.14 0.91 1.89 0.00 0.99 2.12
------------ ----------------------------------------------------------------------
Total Distributions 3.14 0.99 1.89 0.00 0.99 2.12
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 23.74 23.78 22.63 25.47 16.29 14.85
============ ======================================================================
TOTAL RETURN 14.55%* 9.98% (3.92%) 56.36% 16.34% 67.40%
RATIOS
Net Assets -End of Period
($000 Omitted) 290,322 265,181 282,649 351,685 40,140 14,406
Ratio of Expenses to Average
Net Assets 0.62%*@ 1.29%@ 1.17% 1.14% 1.51% 1.86%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.10%* 0.31% 0.00% (0.11%) (0.33%) (0.24%)
Portfolio Turnover Rate 36%* 119% 116% 116% 148% 122%
<PAGE>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Technology Portfolio<
PER SHARE DATA
Net Asset Value -
Beginning of Period $34.33 $24.94 $26.99 $20.20 $18.10 $11.61
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.00 (0.02) (0.02) (0.15) (0.09) (0.09)
Net Gains on Securities
(Both Realized and Unrealized) 4.22 10.20 1.19 6.94 2.19 10.97
------------ ----------------------------------------------------------------------
Total from Investment Operations 4.22 10.18 1.17 6.79 2.10 10.88
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Distributions from Capital Gains 5.86 0.79 3.22 0.00 0.00 4.39
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 32.69 34.33 24.94 26.99 20.20 18.10
============ ======================================================================
TOTAL RETURN 14.34%* 42.19% 5.04% 33.63% 11.57% 93.73%
RATIOS
Net Assets - End of Period
($000 Omitted) 707,192 563,109 327,260 248,803 165,083 63,119
Ratio of Expenses to Average
Net Assets 0.53%*@ 1.12%@ 1.17% 1.13% 1.12% 1.19%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.01%* (0.06%) (0.55%) (0.69%) (0.45%) (0.53%)
Portfolio Turnover Rate 79%* 191% 145% 184% 169% 307%
<FN>
< The per share information for the Leisure Portfolio for 1993 and for the
Technology Portfolio for 1992 and 1991 was computed based on weighted average
shares.
+ Distributions in excess of net investment income for the year ended October
31, 1995, aggregated less than $0.01 on a per share basis.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Portfolio, which is before any expense
offset arrangements.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
UNAUDITED
Utilities Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $10.61 $9.76 $12.80 $10.10 $9.95 $8.35
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.20 0.44 0.33 0.29 0.27 0.39
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.24 0.84 (1.12) 2.71 0.92 1.58
------------ ----------------------------------------------------------------------
Total from Investment Operations 1.44 1.28 (0.79) 3.00 1.19 1.97
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.20 0.43 0.25 0.30 0.26 0.37
Distributions from Capital Gains 0.00 0.00 2.00 0.00 0.78 0.00
------------ ----------------------------------------------------------------------
Total Distributions 0.20 0.43 2.25 0.30 1.04 0.37
------------ ----------------------------------------------------------------------
Net Asset Value - End of Period 11.85 10.61 9.76 12.80 10.10 9.95
============ ======================================================================
TOTAL RETURN 13.61%* 13.48% (7.22%) 29.88% 12.04% 23.98%
RATIOS
Net Assets - End of Period
($000 Omitted) 133,963 134,468 139,579 181,738 107,561 69,267
Ratio of Expenses to Average
Net Assets# 0.60%*@ 1.18%@ 1.13% 1.06% 1.13% 1.21%
Ratio of Net Investment Income to
Average Net Assets# 1.73%* 4.47% 3.33% 2.66% 2.73% 4.19%
Portfolio Turnover Rate 89%* 185% 180% 202% 226% 151%
<FN>
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Portfolio were voluntarily absorbed by IFG for the six
months ended April 30, 1996 and for the years ended October 31, 1995 and 1994.
If such expenses had not been voluntarily absorbed, ratio of expenses to average
net assets would have been 0.60% (not annualized), 1.30% and 1.14%,
respectively, and ratio of net investment income to average net assets would
have been 1.73% (not annualized), 4.34% and 3.32%, respectively.
@ Ratio is based on Total Expenses of the Portfolio, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
</FN>
</TABLE>
<PAGE>
INVESCO Strategic Portfolios, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
April 30 Year Ended October 31 October 31
------------ ----------------------------------------------------------------------
1996 1995 1994 1993 1992 1991^
UNAUDITED
Environmental Services Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $8.12 $6.50 $6.80 $7.54 $8.97 $8.00
------------ ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.03 0.08 0.06 (0.02) (0.04) (0.07)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.66 1.62 (0.30) (0.72) (1.39) 1.04
------------ ----------------------------------------------------------------------
Total from Investment Operations 1.69 1.70 (0.24) (0.74) (1.43) 0.97
------------ ----------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.08 0.06 0.00 0.00 0.00
------------ ----------------------------------------------------------------------
Net Asset Value -
End of Period 9.81 8.12 6.50 6.80 7.54 8.97
============ ======================================================================
TOTAL RETURN 20.81%* 26.09% (3.51%) (9.85%) (15.90%) 12.11%*
RATIOS
Net Assets - End of Period
($000 Omitted) 34,820 22,756 29,276 40,589 17,685 8,001
Ratio of Expenses to
Average Net Assets# 0.78%*@ 1.57%@ 1.29% 1.62% 1.85% 2.50%~
Ratio of Net Investment Income
to Average Net Assets# 0.41%* 0.65% 0.61% (0.40%) (1.23%) (1.81%)~
Portfolio Turnover Rate 55%* 195% 211% 155% 113% 69%*
<FN>
^ From January 2, 1991, commencement of operations, to October 31, 1991.
< The per share information for the Environmental Services Portfolio for 1994
and 1993 was computed based on weighted average shares.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Portfolios were voluntarily absorbed by IFG for the
six months ended April 30, 1996 and for the years ended October 31, 1995 and
1994. If such expenses had not been voluntarily absorbed, ratio of expenses to
average net assets would have been 0.93% (not annualized), 1.93% and 1.43%,
respectively, and ratio of net investment income to average net assets would
have been 0.26% (not annualized), 0.29% and 0.47%, respectively.
@ Ratio is based on Total Expenses of the Portfolio, which is before any expense
offset arrangements.
~ Annualized
</FN>
</TABLE>
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
Latin American Growth 34 IVSLX LatinAmGr
European Small Company 37 IVECX EuroSmCo
European 56 FEURX Europ
Pacific Basin 54 FPBSX PcBas
International Growth 49 FSIGX IntlGr
Asian Growth 41 IVAGX AsianGr
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Technology 55 FTCHX Tech
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Growth, Value
Emerging Growth 60 FIEGX Emgrth
Value Equity 46 FSEQX ValEq
Small Company 74 IDSCX DivSmCo
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
- --------------------------------------------------------------------------------
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
Balanced/Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Total Return 48 FSFLX TotRtn
- --------------------------------------------------------------------------------
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
Intermediate Government Bond 47 FIGBX IntGov
Short-Term Bond 33 INIBX ShTrBd
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Long-Term Bond 35 FTIFX TxFre
Tax-Free Intermediate Bond 36 * *
- --------------------------------------------------------------------------------
Money Market
Tax-Free Money Fund 40 FFRXX N/A
Cash Reserves 25 FDSXX N/A
U.S. Government Money Fund 44 FUGXX N/A
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO FUNDS
To receive general information and prospectuses
on any of INVESCO's funds or retirement plans,
or to obtain current account or price information,
call toll-free:
1-800-525-8085
To reach PAL(R), your 24-hour Personal
Account Line call: 1-800-424-8085
Or write to:
INVESCO Funds Group, Inc.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, please visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center
7800 East Union Avenue, Lobby Level
This information must be preceded or accompanied by an effective prospectus.
