SEMIANNUAL REPORT
April 30, 1997
INVESCO
STRATEGIC
PORTFOLIOS,
INC.
Energy
Environmental Services
Financial Services
Gold
Health Sciences
Leisure
Technology
Utilities
No-Load Portfolios Investing
In Targeted Industry Sectors
INVESCO FUNDS
<PAGE>
Market Overview May 1997
Over the last six months, indications of strong growth paired with signs of
subdued inflation have turned the market into a daily tug-of-war between the
bulls and the bears. Over the first four months of 1997, this increased
volatility took the market to both unprecedented heights and to a 9.8%
correction -- a breath away from the 10% level that defines a technical
correction.
Within this environment, two distinct views about the direction of the
economy and stock market have emerged. The bulls suggest that the current
economic environment is a perfect scenario for the stock market, as low
inflation, coupled with strong economic growth, has produced rising corporate
profits. To support their analysis, they point to the strength of the Gross
Domestic Product -- increasing at a 3.9% rate in the fourth quarter of 1996 and
at a revised rate of 5.8% in the first quarter of 1997. They also look at prices
across the economy as measured by the government's broadest inflation gauge, the
Gross Domestic Product price deflator, which rose only 1.8% in 1996 -- the
smallest advance since 1964. The bulls also suggest that 15 years of corporate
restructuring, downsizing, and investing in technology have produced, and will
continue to produce, dividends for American companies.
The bears paint a different picture. They suggest that strong economic
growth combined with unusually low unemployment (the unemployment rate for 1996
was 5.3% and decreased to 4.9% in March 1997, the lowest level since 1973) has
caused tightness in the labor market. They believe this will lead to inflation
and a reduction in corporate profits, with negative consequences for the
economy. Under their scenario, the market is overvalued and the current economic
expansion is about to end.
Within this turbulent environment, the Dow Jones Industrial Average advanced
to record highs in the fourth quarter of 1996 and the first two months of 1997.
(The Dow is an unmanaged index reflecting large-capitalization stock
performance.) However, small-capitalization equities did not participate in this
up trend. In fact, many smaller-cap stock sectors experienced a rolling
correction based on concerns over potential earnings and valuation levels.
The investment environment changed in the middle of March as increased
consumer spending reignited fears of inflation. This culminated with the Federal
Reserve Board increasing the Fed Funds Rate by 0.25% on March 25, as a
preemptive strike against inflation -- the first rate increase in more than two
years. This action increased negative sentiment in the market and produced a
sharp 5% to 10% pullback in domestic stock markets in a short time span.
<PAGE>
Nonetheless, the market recovered from the pullback, and eventually topped the
record highs set early in the year. However, any further rate increases by the
Federal Reserve Board may have negative consequences for stock prices.
In conclusion, the strength and longevity of the bull market in the 1990s
lured many investors into a false sense of security. The last days of first
quarter 1997 proved a reminder that "past performance is not a guarantee of
future performance." U.S. equity markets do not consistently move in an upward
linear trend. Instead, equity markets are usually volatile, and swings of +10%
and -10% are common in the market. For many investors, the biggest concern
should be the potential erosion of savings by inflation and taxes. This
particular problem may be mitigated through long-term investments in equities as
their returns, historically, have outpaced the negative effects produced by
inflation and taxes -- if investors stick with them through short-term
volatility.
Energy Portfolio
John S. Segner was named the portfolio manager in February 1997, and vice
president in May 1997. John received a BS in civil engineering from the
University of Alabama and an MBA in finance from the University of Texas at
Austin. Before joining INVESCO earlier this year, he served as Managing Director
and Principal for The Mitchell Group from 1990-1997, and was a co-manager of an
institutional energy portfolio with assets of more than $250 million. (The
Mitchell Group is a money management firm that invests exclusively in energy
equities for institutional clients.) Prior to The Mitchell Group, he held
responsibilities with Texaco Inc. and Amerada Hess Corporation.
The fund's competitive performance has improved significantly in recent
months. Independent mutual fund analyst Lipper Analytical Services ranked
INVESCO Energy Portfolio #7 of 41 natural resources funds for the one-year
period ended 4/30/97. For the 10-year period, the fund was ranked #7 of 10
funds; for the five-year period, #14 of 17.(3)
For the six-month period ended 4/30/97, Energy Portfolio had a total return
of 0.63%, compared to 14.71% for the S&P 500. (Of course, past performance is
not a guarantee of future results.)(1),(2)
<PAGE>
Energy Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 15.74%
-----------------------------------------
5 years 11.02%
-----------------------------------------
10 years 5.17%
-----------------------------------------
After a strong 1996, energy stocks in 1997 have experienced increased
volatility, and many have relinquished some of the gains they produced last
year. This was caused primarily by a milder-than-expected winter in the U.S. and
a temporary over-supply of oil. Within this environment, high-quality,
dividend-paying energy companies produced superior returns compared to smaller,
second-tier energy companies. Thus, companies like Exxon Corp., Sonat Inc., and
Texaco Inc. contributed positively to the fund's performance over the last six
months.
The characteristics of the portfolio have been changed to reflect market
conditions and the new portfolio manager's investment style. First, we reduced
the number of holdings to about 40 stocks. This should allow us to monitor our
stocks more closely. Second, we improved the quality of the companies within the
portfolio. This reflects our conservative management style and should help
protect the fund in a difficult market.
Graph:
This line graph represents a comparison of the value of a $10,000 investment
in the Energy Portfolio to the value of a $10,000 investment in the S&P 500
Index, assuming in each case reinvestment of all dividends and capital gain
distributions, for the ten year period ended 4/30/97.
We feel the long-term prospects for the energy industry remain bright due to
several factors. First, increased demand for energy from emerging and developing
nations, especially in the Far East, should eventually translate into higher
energy prices. Second, technology has improved the efficiency of many energy
companies, which may have a positive impact on their profitability. Finally,
excess capacity in the oil industry is hovering around an all-time low. This
should increase the price sensitivity of oil to shifts in demand.
<PAGE>
Environmental Services Portfolio
Environmental Services Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 0.07%
-----------------------------------------
5 years 2.48%
-----------------------------------------
10 years 3.59%
-----------------------------------------
For the six-month period ended 4/30/97, Environmental Services Portfolio had
a total return of -3.73%, compared to 14.71% for the S&P 500. (Of course, past
performance is not a guarantee of future results.)(1),(2)
The recent volatility in the market has negatively affected
small-capitalization environmental stocks as investors switched their emphasis
to predictability of earnings and liquidity. Given this situation, we have
focused on upgrading the quality of holdings in the portfolio, while being
conscious of the tax consequences for shareholders. These higher-quality stocks
should help to increase the stability of the portfolio in a potentially volatile
market.
Concurrently, we have focused on the theme of industry consolidation.
Certain companies may improve their profitability through successful
acquisitions. We are also intrigued by the water quality industry, as water
quality in the U.S. has significantly deteriorated over the last 10 years. This
situation may lead to increased profitability for water purification companies
like Culligan Water Technologies and United Water Resources.
Graph:
This line graph represents a comparison of the value of a $10,000 investment
in the Environmental Services Portfolio to the value of a $10,000 investment
in the S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended 4/30/97.
Looking forward, we feel that the environmental services sector, because it
deals with a necessity, offers exciting long-term growth potential. However,
short-term volatility will likely continue as nervousness in the market may
persist.
<PAGE>
Environmental Services Portfolio is managed by INVESCO Vice President Gerard
Hallaren. A Chartered Financial Analyst, Gerard earned a BA in economics for the
University of Massachusetts-Amherst.
Financial Services Portfolio
Financial Services Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 31.53%
-----------------------------------------
5 years 21.40%
-----------------------------------------
10 years 20.08%
-----------------------------------------
Lipper Analytical Services ranked INVESCO Financial Services Portfolio #4 of
10 financial services funds for the 10-year period ended 4/30/97, based on total
return unadjusted for commissions. For the five-year period, the fund was ranked
#10 of 13 funds; and for the one-year period, #11 of 18.(3)
Overall, and for the three-, five- and 10-year periods ended 4/30/97, the
fund received the prestigious five star rating for risk-adjusted performance by
independent mutual fund analyst Morningstar.(4)
During the six-month period ended 4/30/97, the fund achieved a total return
of 14.79%, compared to 14.71% for the S&P 500. (Of course, past performance is
not a guarantee of future results.)(1)(2) Historically, stocks of
financial services companies are lower-risk stocks that offer a high
dividend yield and trade at reasonable valuation levels. These
characteristics helped soften the impact of the recent market volatility
on this sector. We continue to believe that market-leading companies in the
bank and insurance industries will benefit from increased demand and industry
consolidation. One of our stronger performers for the fund remains Conseco
Inc. This firm's accelerating presence in the annuity business and
successful acquisition strategy have dramatically improved their fundamentals
- -- and recently it was added to the S&P 500.(1)
Graph:
This line graph represents a comparison of the value of a
$10,000 investment in the Financial Services Portfolio to the
<PAGE>
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 4/30/97.
Looking forward, we feel that the financial services sector offers dynamic
long-term potential. Changing demographics in the U.S. -- the graying of America
- -- have forced many baby boomers to address issues concerning their retirement.
In fact, the oldest baby boomers just turned 50 this year, and now have roughly
15 years until they retire. They are likely to increase their use of banks,
financial, and insurance companies in the coming years. This trend should last
for years into the future, leading to improved growth and profitability for
selected companies in the financial services sector.
Financial Services Portfolio is co-managed by INVESCO Senior Vice President
Daniel B. Leonard and Vice President Jeffrey G. Morris. Dan 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.
Jeff was named co-manager of the fund in March 1997. Jeff joined INVESCO in
1991, served as a research analyst from 1994 to 1995, and became a vice
president in 1997. He earned a BS from Colorado State University and MS from
University of Colorado-Denver. He is a Chartered Financial Analyst.
Gold Portfolio
Gold Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year -25.84%
-----------------------------------------
5 years 11.67%
-----------------------------------------
10 years -3.32%
-----------------------------------------
Lipper Analytical Services ranked INVESCO Gold Portfolio #18 of 45
gold-oriented funds for the one-year period ended 4/30/97, based on total return
unadjusted for commissions. For the five-year period, the fund was ranked #7 of
27 funds; for the 10-year period, #13 of 18.(3)
<PAGE>
For the six-month period ended 4/30/97, Gold Portfolio had a total return of
- -20.47%, compared to 14.71% for the S&P 500. (Of course, past performance is not
a guarantee of future results.)(1),(2) During the last six months, bullion
prices declined due to low inflation worldwide and the threat that European
central banks might sell their gold reserves. Additionally, growth gold
companies experienced extreme volatility when doubts arose about the
legitimacy of claims by Bre-X Minerals Ltd.
The apparent hoax caused a ripple effect in the mining industry, and stock
prices of junior- to mid-size gold companies immediately dropped. However, the
fund, which held a position in Bre-X, had closed its holdings earlier this year
- -- realizing a substantial profit.
Graph:
This line graph represents a comparison of the value of a $10,000 investment
in the Gold Portfolio to the value of a $10,000 investment in the S&P 500
Index, assuming in each case reinvestment of all dividends and capital gain
distributions, for the ten year period ended 4/30/97.
The steep devaluation created a buying opportunity for many investors as
these companies now appear to be fundamentally undervalued. Companies like
Euro-Nevada Mining Ltd. and Franco Nevada Mining Ltd. (mining royalty
companies), Getchell Gold (a domestic gold mining firm with intriguing
properties), and Franciso Gold (a Canadian mining company with Latin American
properties) appear currently undervalued with strong growth potential.
Looking forward, we believe the long-term outlook for the gold industry to
be quite positive. The demand for gold continues to increase as the need by Far
East countries outpaces supply. Eventually, as gold reserves dwindle, the
imbalance between supply and demand should translate into increased bullion
prices. This in turn may stimulate demand for gold and improve the profitability
of junior- to mid-size exploration companies.
Gold Portfolio is managed by Senior Vice President Daniel B. Leonard. He
joined INVESCO in 1975; his investment experience extends back to 1960. He
attended the New York University Graduate School of Business and holds a BA from
Washington & Lee University.
Health Sciences Portfolio
Lipper Analytical Services ranked INVESCO Health Sciences Portfolio #3 of 7
health-biotechnology funds for the 10-year period ended 4/30/97, based on total
return unadjusted for commissions.
<PAGE>
For the one-year period, the fund was ranked #12 of 23 funds; for the five-year
period, #9 of 12.(3)
For the six-month period ended 4/30/97, Health Sciences Portfolio had a
total return of 4.89%, compared to 14.71% for the S&P 500. (Of course, past
performance is not a guarantee of future results.)(1),(2)
Nervousness in the broad market over the last six months has placed a
premium on liquidity and stability of earnings. This has also been true in the
health care industry. Volatility has created a two-tier health care market, in
which market-leading, large-capitalization pharmaceutical companies outperformed
small-cap health care stocks. These large-cap drug firms remain a vital part of
our portfolio strategy. Warner-Lambert Co.-- our largest holding as of 4/30/97
- -- has seen a significant price appreciation as their two new drugs (Lipitor and
Rezulin) were well received by the market.
Health Sciences Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 0.08%
-----------------------------------------
5 years 11.32%
-----------------------------------------
10 years 17.85%
-----------------------------------------
The fund's performance was negatively affected over the last six months by
its exposure to small-cap health care stocks. These stocks experienced a
deterioration in market value and fell out of favor with investors. However,
they may now be undervalued, as many are selling at a lower price-to-earnings
ratio than larger companies.
Looking forward, we believe that returns for the health care sector may be
more normal in 1997, though day-to-day fluctuations could be extreme. However,
drastic action by the Fed may compress price-to-earnings ratios which could
alter the investment environment. Nevertheless, the long-term fundamentals for
this sector remain quite positive.
Graph:
This line graph represents a comparison of the value of a $10,000 investment
in the Health Sciences Portfolio to the value of a $10,000 investment in the
<PAGE>
S&P 500 Index, assuming in each case reinvestment of all dividends and
capital gain distributions, for the ten year period ended 4/30/97.
Health Sciences Portfolio is co-managed by INVESCO Senior Vice President
John R. Schroer, a Chartered Financial Analyst. He started his investment career
in 1989, after earning an MBA and BA from the University of Wisconsin. Last
summer, 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
Leisure Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year -1.60%
-----------------------------------------
5 years 14.56%
-----------------------------------------
10 years 15.30%
-----------------------------------------
Lipper Analytical Services ranked Leisure Portfolio #2 of 17
specialty/miscellaneous funds for the 10-year period ended 4/30/97, based on
total return unadjusted for commissions. For the one-year period, the fund was
ranked #23 of 28 funds; for the five-year period, #7 of 19.(3) For the six-
month period ended 4/30/97, the fund had a total return of 1.85%, compared
to 14.71% for the S&P 500. (Of course, past performance is not a
guarantee of future results.)(1),(2)
During the last six months, leisure stocks underperformed the broad equity
market. There were two driving forces that contributed to this. First, the
market experienced a "flight to quality" over the last six months as investors
placed a premium on large, liquid stocks and avoided small- to
mid-capitalization stocks. Second, selected leisure industries experienced poor
performance due to deteriorating business conditions. This produced negative
consequences for the sector as a whole.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000 investment
in the Leisure Portfolio to the value of a $10,000 investment in the S&P 500
Index, assuming in each case reinvestment of all dividends and capital gain
distributions, for the ten year period ended 4/30/97.
However, fund performance was aided by individual stocks, as we are
constantly searching for the best ideas and opportunities throughout the world.
Companies such as DeBeers Consolidated Mines ADR, a worldwide diamond mining and
marketing company, and Carnival Corp. Class A -- the world's largest cruise ship
company -- are examples of two companies that contributed positive results over
the last six months.
Looking forward, the leisure sector may offer exciting returns for the
patient investor. This sector generally grows at a faster rate than the Gross
National Product, over all market cycles. As emerging and developing nations
increase their per capita income, individuals will spend more on leisure on an
absolute and relative basis. Short-term volatility may be experienced in the
near future; but long-term fundamentals still appear strong.
Leisure Portfolio is managed by Mark Greenberg. He is a Chartered Financial
Analyst and started his investment career in 1980. Mark earned his BSBA in
Finance from Marquette University. Prior to joining INVESCO he was with Scudder,
Stevens & Clark in New York.
Technology Portfolio
Technology Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 6.93%
-----------------------------------------
5 years 21.65%
-----------------------------------------
10 years 16.12%
-----------------------------------------
Lipper Analytical Services ranked Technology Portfolio #4 of 12 science &
technology funds for the 10-year period ended 4/30/97, based on total return
unadjusted for commissions. For the one-year period, the fund was ranked #13 of
42 funds; for the five-year period, #8 of 16.(3) For the six-month period ended
<PAGE>
4/30/97, Technology Portfolio had a total return of 1.90%, compared to 14.71%
for the S&P 500. (Of course, past performance is not a guarantee of future
results.)(1),(2)
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the Technology Portfolio to the value of a $10,000 investment
in the S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended 4/30/97.
The technology sector was again more volatile than the broader market
during the last six months. This has been especially true for
smaller-capitalization technology stocks. These companies, which are in their
infancy, primarily trade on their potential growth. Many of these stocks have
experienced drops of 40% to 60%, as the threat of increased interest rates
reduced their valuation levels.
Within this difficult environment, we remained committed to investing in
market-leading technology companies with predictable earnings. These companies
- -- like Tandy Corp. and Nokia Corp. -- provided stability and price
appreciation. Our large cash balance has also helped temper volatility and has
provided some defensive performance in an erratic market.
Looking forward, we believe that the volatile market environment may
continue through 1997, as the threat of future rate increases by the Fed may
become reality. Consequently, we will continue with our conservative investment
philosophy. However, we are starting to see intriguing valuation levels in many
small-cap stocks, and we may selectively add to the portfolio as warranted, thus
reducing our cash balance.
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. Gerard earned his BA from the
University of Massachusetts-Amherst and is a Chartered Financial Analyst.
<PAGE>
Utilities Portfolio
Utilities Portfolio
Average Annualized Total Return
as of 4/30/97(2)
1 year 2.23%
-----------------------------------------
5 years 11.25%
-----------------------------------------
10 years 10.46%
-----------------------------------------
Lipper Analytical Services ranked INVESCO Utilities Portfolio #3 of 7
utilities funds for the 10-year period ended 4/30/97, based on total return
unadjusted for commissions. For the five-year period, the fund was ranked #11 of
23 funds, and for the one-year period, #88 of 91.(3)
For the six-month period ended 4/30/97, Utilities Portfolio had a total
return of -0.89%, compared to 14.71% for the S&P 500. (Of course, past
performance is not a guarantee of future results.)(1),(2)
The last six months proved to be a difficult environment for utility
stocks. Electric utility stocks -- which in many ways behave like fixed-income
securities -- were held hostage by the volatile bond market. Communications
companies experienced a "sell-off" as the stock market corrected in the spring
and have been slow to recover. Natural gas companies saw a reduction in their
stock prices due to an over-supply of natural gas caused by a
milder-than-expected winter. These factors combined to negatively affect the
fund's performance over the last six months.
Performance was enhanced on an individual stock basis as companies such as
Public Service of Colorado, Bell Atlantic, and NYNEX Corp. contributed positive
results. In addition, we have been rewarded by the earnings of certain electric
utilities. These companies' returns, although still fairly dependent on
regulated rates of returns, are becoming increasingly based on market forces.
This may have positive results for low-cost providers of electricity, as
state-by-state reforms allow consumers to choose their own service provider.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the Utilities Portfolio to the value of a $10,000 investment
<PAGE>
in the S&P 500 Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the ten year period ended 4/30/97.
Looking forward, the potential for a slowing economy and increased interest
rates could have a short-term negative effect on utility stocks in 1997.
However, investors need to remember that positive structural changes are
occurring within the industry, and that uncertainty can create buying
opportunities. In addition, utility stocks are typically defensive in nature,
producing a high-dividend yield. These stocks may add a degree of stability to a
portfolio exposed to the broad equity market.
Utilities Portfolio is managed by Jeffrey Morris. He is a Chartered
Financial Analyst, and earned a MS from the University of Colorado-Denver and BS
from Colorado State University. Jeff joined INVESCO in 1991.
-------------------------------------------
The line graphs on the previous 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 ten-year period ended 4/30/97;
or, in the case of Environmental Services Portfolio, from inception through
4/30/97. The charts and other total return figures cited reflect the portfolios'
operating expenses, but the indexes do not have expenses, which would, of
course, have lowered their performance.
(1)The S&P 500 is an unmanaged index considered representative of the
performance of the broad U.S. stock market.
(2)Total return assumes reinvestment of dividends and capital gain distributions
for the periods indicated. Past performance is not a guarantee of future
results. Investment return and principal value will fluctuate so that, when
redeemed, an investor's shares may be worth more or less than when purchased.
(3)Rankings provided by Lipper Analytical Services, an independent fund analyst,
are based upon total return performance unadjusted for commissions. When
available, rankings are cited for one-, five-, and 10-year periods.
(4)Morningstar's proprietary rankings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated for
the fund's three-, five-, and 10-year average annual returns (based on available
track records) in excess of 90-day Treasury bill returns. The top 10% of funds
in an investment category receive 5 stars. As of 4/30/97, Financial Services
Fund received 5 stars among 1929 funds in the domestic equity fund category for
the three-year period, 5 stars among 1101 funds for the five-year period, and 5
stars among 614 funds 10-year period.
<PAGE>
INVESCO Strategic Portfolios, Inc.
FIVE LARGEST COMMON STOCK HOLDINGS
April 30, 1997
Description Value
- --------------------------------------------------------------------------------
ENERGY Portfolio
Sonat Inc $8,842,950
United Meridian 8,824,625
Phillips Petroleum 7,875,000
Louisiana Land & Exploration 7,150,000
Nabors Industries 6,806,250
ENVIRONMENTAL SERVICES Portfolio
Laidlaw Inc Class B $1,158,125
Philip Environmental 945,000
US Filter 911,250
Newpark Resources 897,500
VIASOFT Inc 850,000
FINANCIAL SERVICES Portfolio
Conseco Inc $49,650,000
Lincoln National 35,000,000
SunAmerica Inc 28,520,000
NationsBank Corp 25,478,250
Republic New York 22,906,250
GOLD Portfolio
Lihir Gold Ltd Sponsored ADR $ 14,500,000
Franco-Nevada Mining Ltd 13,956,481
Euro-Nevada Mining Ltd 12,915,113
Getchell Gold 11,512,500
Indochina Goldfields Ltd 9,196,963
HEALTH SCIENCES Portfolio
Warner-Lambert Co $64,444,800
Pfizer Inc 46,080,000
Bristol-Myers Squibb 44,540,000
Schering AG 43,136,785
Schering-Plough Corp 42,800,000
<PAGE>
Description Value
- --------------------------------------------------------------------------------
LEISURE Portfolio
Time Warner $8,550,000
Disney (Walt) Co 6,989,106
DeBeers Consolidated Mines Deferred ADR 6,909,005
Carnival Corp Class A 6,054,875
Hilton Hotels 5,940,000
TECHNOLOGY Portfolio
Microsoft Corp $46,899,000
Schlumberger Ltd 38,762,500
International Business Machines 35,766,875
Intel Corp 34,453,125
SCI Systems 24,700,000
UTILITIES Portfolio
NYNEX Corp $5,350,950
Bell Atlantic 5,196,425
BellSouth Corp 4,850,500
SBC Communications 4,662,000
GTE Corp 4,633,375
Composition of holdings is subject to change.
<PAGE>
INVESCO Strategic Portfolios, Inc.
STATEMENT OF INVESTMENT SECURITIES
April 30, 1997
UNAUDITED
Shares,
Country Units or
Code if Principal
Description Non US Amount Value
- --------------------------------------------------------------------------------
ENERGY Portfolio
COMMON STOCKS 94.99%
ENGINEERING & CONSTRUCTION 1.31%
Willbros Group* ............................. 219,100 $ 2,218,387
------------
MANUFACTURING 2.33%
Maverick Tube* .............................. 181,000 3,959,375
------------
NATURAL GAS 7.08%
KN Energy ................................... 85,000 3,166,250
Sonat Inc ................................... 154,800 8,842,950
------------
12,009,200
------------
Oil & Gas 84.27%
DOMESTIC INTEGRATED 4.64%
Phillips Petroleum .......................... 200,000 7,875,000
------------
DRILLING & EQUIPMENT 25.53%
Canadian 88 Energy* ......................... 839,500 3,605,067
Global Industries Ltd* ...................... 170,000 3,570,000
Nabors Industries* .......................... 363,000 6,806,250
Noble Affiliates ............................ 180,000 6,435,000
Noble Drilling* ............................. 385,000 6,689,375
Transocean Offshore ......................... 78,299 4,746,877
Trico Marine Services* ...................... 138,600 4,920,300
Veritas DGC* ................................ 340,000 6,545,000
------------
43,317,869
------------
EXPLORATION & PRODUCTION 39.24%
Bellwether Exploration* ..................... 480,000 4,200,000
Flores & Rucks* ............................. 92,200 4,022,225
Louisiana Land & Exploration ................ 143,000 7,150,000
MAPCO Inc ................................... 40,000 1,185,000
Monterey Resources .......................... 190,000 2,897,500
<PAGE>
Murphy Oil .................................. 127,000 5,524,500
Nuevo Energy* ............................... 123,000 4,228,125
Patterson Energy* ........................... 170,000 4,887,500
Santa Fe Energy Resources* .................. 371,000 5,240,375
Triton Energy Ltd* .......................... 180,000 6,615,000
Union Pacific Resources Group ............... 190,000 5,153,750
United Meridian* ............................ 311,000 8,824,625
Vastar Resources ............................ 213,000 6,656,250
------------
66,584,850
------------
INTERNATIONAL INTEGRATED 14.86%
Amoco Corp .................................. 70,000 5,853,750
British Petroleum PLC Sponsored ADR ......... 48,900 6,729,862
Exxon Corp .................................. 108,200 6,126,825
Gulf Canada Resources Ltd ................... 150,000 1,218,750
Texaco Inc .................................. 50,000 5,275,000
------------
25,204,187
------------
TOTAL OIL & GAS ............................. 142,981,906
------------
TOTAL COMMON STOCKS
(Cost $164,173,863) ........................ 161,168,868
------------
PREFERRED STOCKS 4.25%
NATURAL GAS 4.25%
Enron Corp, 6.25%, Redeemable
Exchangeable Pfd (Cost $7,612,676) ......... 361,000 7,220,000
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 0.76%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$1,288,190 (Collateralized by
US Treasury Bonds due 2/15/2016
at 9.250%, value $1,339,034)
(Cost $1,288,000) .......................... $1,288,000 1,288,000
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $173,074,539)
(Cost for Income Tax Purposes
$173,412,413) $169,676,868
============
<PAGE>
ENVIRONMENTAL SERVICES Portfolio
COMMON STOCKS 70.56%
CHEMICALS 8.22%
General Chemical Group ..................... 26,000 578,500
Mycogen Corp* .............................. 20,000 362,500
OM Group ................................... 22,000 613,250
-----------
1,554,250
-----------
COMPUTER RELATED 4.49%
VIASOFT Inc* ............................... 20,000 850,000
-----------
ELECTRIC UTILITIES 3.46%
United Water Resources ..................... 40,000 655,000
-----------
IRON & STEEL 3.38%
Northwest Pipe* ............................ 40,000 640,000
-----------
MANUFACTURING 1.92%
Flanders Corp* ............................. 50,000 362,500
-----------
METALS MINING 0.24%
Recycling Industries* ...................... 35,000 44,846
-----------
OIL & GAS RELATED 4.75%
Newpark Resources* ......................... 20,000 897,500
-----------
Pollution Control 41.74%
EQUIPMENT/SYSTEMS 8.14%
Cuno Inc* .................................. 10,000 138,750
Thermatrix Inc* ............................ 145,000 489,375
US Filter* ................................. 30,000 911,250
-----------
1,539,375
-----------
RECYCLING 10.71%
Browning-Ferris Industries ................. 25,000 709,375
Philip Environmental* ...................... 60,000 945,000
TETRA Technologies* ........................ 16,000 372,000
-----------
2,026,375
-----------
<PAGE>
SERVICES 22.89%
American Disposal Services* ................ 49,000 802,375
Culligan Water Technologies* ............... 10,000 408,750
EnviroSource Inc* .......................... 30,000 48,750
Laidlaw Inc Class B ........................ 85,000 1,158,125
Republic Industries* ....................... 30,000 744,375
USA Waste Services* ........................ 15,000 491,250
United Waste Systems* ...................... 20,000 675,000
-----------
4,328,625
-----------
TOTAL POLLUTION CONTROL .................... 7,894,375
-----------
SERVICES 2.36%
American Water Works ....................... 21,000 446,250
-----------
TOTAL COMMON STOCKS
(Cost $13,187,014) ...................... 13,344,721
-----------
PREFERRED STOCKS 0.00%
POLLUTION CONTROL -
RECYCLING 0.00%
Cyclean Inc, Series D Pfd*^
(Cost $499,998) ......................... 146,691 1
-----------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 29.44%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$5,569,821 (Collateralized by
US Treasury Bonds due 2/15/2016
at 9.250%, value $5,771,048)
(Cost $5,569,000) ......................... $ 5,569,000 5,569,000
-----------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $19,256,012#) ..................... $18,913,722
===========
FINANCIAL SERVICES Portfolio
COMMON STOCKS 88.74%
BANKS 35.92%
ABN AMRO Holding NV ........................ 100,000 6,873,368
Bank of New York ........................... 400,000 15,800,000
<PAGE>
BankAmerica Corp .............................. 170,000 19,868,750
Bankers Trust New York ........................ 34,800 2,831,850
City National ................................. 300,000 6,862,500
Compass Bancshares ............................ 750,000 22,687,500
Imperial Bancorp* ............................. 313,450 7,366,075
National Commerce Bancorp ..................... 25,000 1,068,750
NationsBank Corp .............................. 422,000 25,478,250
Republic New York ............................. 250,000 22,906,250
Riggs National ................................ 300,000 5,550,000
Royal Bank of Canada .......................... 400,000 15,950,000
Signet Banking ................................ 250,000 7,718,750
Southern National ............................. 500,000 19,625,000
State Street .................................. 200,000 15,750,000
Toronto-Dominion Bank ......................... 500,000 14,125,000
Union Planters ................................ 500,000 22,312,500
Wachovia Corp ................................. 250,000 14,625,000
-----------
247,399,543
-----------
FINANCIAL 6.39%
American Financial Group ...................... 200,000 6,975,000
Federal National Mortgage Association ......... 300,000 12,337,500
First USA ..................................... 200,000 9,625,000
HomeSide Inc* ................................. 387,500 6,200,000
Northern Trust ................................ 200,000 8,900,000
-----------
44,037,500
-----------
INSURANCE 40.92%
American General .............................. 300,000 13,087,500
American International Group .................. 100,000 12,850,000
Conseco Inc ................................... 1,200,000 49,650,000
Equitable of Iowa ............................. 240,000 11,730,000
Everest Re Holdings ........................... 300,000 8,625,000
Jefferson-Pilot Corp .......................... 300,000 17,325,000
Lincoln National .............................. 625,000 35,000,000
Nationwide Financial Services Class A* ........ 150,000 3,975,000
Protective Life ............................... 29,200 1,292,100
Providian Corp ................................ 200,000 11,550,000
ReliaStar Financial ........................... 200,000 12,100,000
SAFECO Corp ................................... 200,200 8,008,000
St Paul Cos ................................... 200,000 13,400,000
SunAmerica Inc ................................ 620,000 28,520,000
Torchmark Corp ................................ 200,000 12,425,000
Travelers Group ............................... 300,000 16,612,500
<PAGE>
UNUM Corp ..................................... 200,000 15,400,000
Western National .............................. 400,000 10,300,000
-----------
281,850,100
-----------
INSURANCE BROKERS 2.31%
Regions Financial ............................. 280,000 15,890,000
-----------
SAVINGS & LOAN 3.20%
Reliance Bancorp .............................. 100,000 2,262,500
Washington Mutual ............................. 400,000 19,750,000
-----------
22,012,500
-----------
TOTAL COMMON STOCK
(Cost $496,046,787) ........................ 611,189,643
-----------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER ........................... 11.26%
AUTOMOBILES 3.63%
General Motors Acceptance
5.500%, 5/5/1997 ........................... 25,000,000 25,000,000
-----------
FINANCIAL 3.63%
Associates Corp of North
America, 5.600%, 5/1/1997 .................. 25,000,000 25,000,000
-----------
OIL & GAS RELATED 4.00%
Chevron Oil Finance
5.480%, 5/2/1997 ........................... $27,519,000 27,519,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $77,519,000) ......................... 77,519,000
-----------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $573,565,787) (Cost for
Income Tax Purposes $573,706,942) .......... $688,708,643
-----------
GOLD Portfolio
COMMON STOCKS 94.54%
BANKS 0.84%
Bank fuer Internationalen
Zahlungsausgleich .................... SZ 257 1,722,244
<PAGE>
-----------
FOODS 1.06%
Nevsun Resources Ltd* ................... CA 700,000 2,179,358
-----------
GOLD & PRECIOUS
METALS MINING 90.97%
Aber Resources Ltd* ..................... CA 300,000 4,725,000
Argosy Mining* .......................... CA 1,100,000 747,924
Arizona Star Resource* .................. CA 1,000,000 7,157,170
Ashanti Goldfields Ltd
Sponsored ADR ........................ GH 300,000 3,562,500
Barrick Gold ............................ CA 100,000 2,237,500
Bema Gold* .............................. CA 750,000 5,109,375
Beringer Gold* .......................... CA 600,000 171,772
Canyon Resources* ....................... 600,000 1,537,500
Crown Resources*~ ....................... 960,000 5,640,000
De Beers Consolidated Mines
Deferred ADR ......................... SF 250,000 8,996,100
Eldorado Gold* .......................... CA 500,000 2,254,509
Emperor Mines Ltd* ...................... AS 3,000,000 4,455,690
Euro-Nevada Mining Ltd .................. CA 450,000 12,915,113
Franc-Or Resources* ..................... CA 189,000 135,271
Francisco Gold*~ ........................ CA 200,000 3,133,949
Franco-Nevada Mining Ltd ................ CA 300,000 13,956,481
Freeport McMoRan Copper &
Gold Class A ......................... 306,247 8,574,916
Geomaque Explorations Ltd* .............. CA 544,900 1,247,982
Getchell Gold* .......................... 300,000 11,512,500
Gitennes Exploration* ................... CA 500,000 2,505,010
Glenmore Highlands* ..................... CA 500,000 1,610,363
Goldbelt Resources*~ .................... CA 2,000,000 715,717
Golden Star Resources* .................. 1,100,000 7,975,000
Greenstone Resources Ltd* ............... CA 700,000 6,562,500
Guyanor Ressources SA Class B*~ ......... FR 960,000 3,023,328
IAMGOLD* ................................ CA 23,800 93,687
Indochina Goldfields Ltd* ............... CA 1,000,000 9,196,963
International Capri Resources*~ ......... CA 600,000 352,133
International Taurus Resources* ......... CA 500,000 361,437
KWG Resources* .......................... CA 400,000 1,600,000
Kloof Gold Mining Ltd Sponsored ADR ..... SF 300,000 2,062,500
Lihir Gold Ltd Sponsored ADR* ........... AS 400,000 14,500,000
Manhattan Minerals* ..................... CA 400,000 2,390,495
Meridian Gold* .......................... CA 25,000 118,750
Metallica Resources* .................... CA 500,000 1,187,500
Monarch Resources* ...................... CA 235,000 218,652
<PAGE>
Original Sixteen to One Mine* ........... CA 91,100 284,687
Orvana Minerals* ........................ CA 500,000 2,200,830
Pacific Amber Resources Ltd*~ ........... CA 300,000 515,316
Pacific Rim Mining*~ .................... CA 924,900 3,839,407
Pangea Goldfields* ...................... CA 300,000 1,073,575
Peruvian Gold Ltd* ...................... CA 200,000 256,227
Placer Dome ............................. CA 100,000 1,637,500
Queenstake Resources Ltd* ............... CA 500,000 733,610
Repadre Capital* ........................ CA 200,000 1,188,090
Rex Diamond Mining* ..................... CA 240,000 584,025
Rio Narcea Gold Mines* .................. CA 500,000 1,932,436
St Jude Resources Ltd* .................. CA 24,000 87,604
Santa Fe Pacific Gold ................... 500,000 7,375,000
Scorpion Minerals* ...................... CA 519,333 1,189,425
Solitario Resources* .................... CA 204,000 671,629
South Pacific Resources* ................ CA 150,000 210,421
Sutton Resources Ltd* ................... 100,000 1,825,000
TVI Pacific* ............................ CA 1,500,000 880,332
Trillion Resources Ltd* ................. CA 500,000 1,538,792
Vaal Reefs Exploration &
Mining Ltd ADR ....................... SF 300,000 1,762,500
Western Deep Levels Ltd ADR ............. SF 200,000 4,975,000
-----------
187,306,693
-----------
IRON & STEEL 0.73%
Rea Gold* .......................... CA 1,852,700 1,505,319
---------
METALS MINING 0.94%
Pittston Minerals Group ............ 143,500 1,865,500
Puma Minerals* ..................... CA 100,000 39,364
Sonoma Resources*~ ................. CA 62,800 39,104
---------
1,943,968
---------
TOTAL COMMON STOCKS
(Cost $221,538,132) 194,657,582
------------
PREFERRED STOCKS 0.28%
GOLD & PRECIOUS METALS MINING 0.28%
Coeur D'Alene Mines, 7.000%
Mandatory Adjustable
Redeemable Conv Pfd
(Cost $752,250) 35,400 570,825
------------
<PAGE>
FIXED INCOME SECURITIES 2.79%
GOLD & PRECIOUS METALS MINING 2.79%
Ashanti Capital Ltd
Exchangeable Gtd Notes
5.500%, 3/15/2003
(Cost $7,000,000) CJ 7,000,000 5,740,000
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 2.39%
Repurchase Agreement
with State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$4,929,727 (Collateralized by
US Treasury Bonds due 2/15/2016
at 9.250%, value $5,105,711)
(Cost $4,929,000) 4,929,000 4,929,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $234,219,382)
(Cost for Income Tax Purposes
$234,876,286) 205,897,407
============
HEALTH SCIENCES Portfolio
COMMON STOCKS & WARRANTS 81.63%
ALTERNATE SITE CARE 0.86%
Total Renal Care Holdings* ........... 243,700 7,828,863
-----------
BIOTECHNOLOGY 7.57%
Arris Pharmaceutical* ................ 611,000 6,568,250
Cambridge NeuroScience* .............. 200,000 1,675,000
Cephalon Inc* ........................ 87,500 1,465,625
Creative BioMolecules* ............... 1,130,000 8,545,625
Ecogen Technologies I*^~ ............. 100 1
Genentech Inc* ....................... 250,000 14,656,250
IDEC Pharmaceuticals* ................ 428,000 7,597,000
ImClone Systems* ..................... 650,000 3,331,250
INCYTE Pharmaceuticals* .............. 199,000 8,457,500
MedClone Inc Warrants (Exp 1999)*@^ .. 500,000 0
Neose Technologies* .................. 345,000 4,183,125
PathoGenesis Corp* ................... 185,600 4,872,000
Sepracor Inc* ........................ 180,000 3,510,000
Titan Pharmaceuticals*^ .............. 488,215 1,098,484
<PAGE>
Unisyn Technologies*^~ ............... 31,132 31,132
Vical Inc* ........................... 186,400 1,957,200
Xenometrix Inc*^ ..................... 145,641 786,461
-----------
68,734,903
-----------
DRUG DELIVERY 1.36%
CIMA Labs* ........................... 466,666 2,333,330
Emisphere Technologies*~ ............. 693,600 10,057,200
-----------
12,390,530
-----------
DRUGS 53.49%
Abbott Laboratories .................. 460,000 28,060,000
American Home Products ............... 450,000 29,812,500
Amylin Pharmaceuticals* .............. 165,000 1,691,250
Bristol-Myers Squibb ................. 680,000 44,540,000
Glaxo Wellcome PLC ADR ............... UK 650,000 25,593,750
Inhale Therapeutic Systems* .......... 216,450 4,004,325
Johnson & Johnson .................... 600,000 36,750,000
Lilly (Eli) & Co ..................... 100,000 8,787,500
Merck & Co ........................... 444,000 40,182,000
Novartis AG ADR++ .................... SZ 24,700 32,555,570
Pfizer Inc ........................... 480,000 46,080,000
Roche Holding AG Genusscheine
Non-Voting Shrs++ ................. SZ 2,400 20,279,616
Schering-Plough Corp ................. 535,000 42,800,000
SmithKline Beecham PLC ADR
Representing Ord A Shrs ........... UK 524,000 42,247,500
Sparta Pharmaceuticals*^~ ............ 500,000 295,313
Synthelabo++ ......................... FR 150,000 17,861,987
Warner-Lambert Co .................... 657,600 64,444,800
-----------
485,986,111
-----------
HEALTH MAINTENANCE
ORGANIZATIONS 1.37%
Coventry Corp* ....................... 962,800 12,456,225
-----------
HEALTHCARE DRUGS -
PHARMACEUTICALS 4.75%
Schering AG++ ........................ GM 450,000 43,136,785
-----------
INFORMATION MANAGEMENT 2.81%
Cerner Corp* 433,900 6,996,638
<PAGE>
HBO & Co ..................................... 347,040 18,566,640
----------
25,563,278
----------
MEDICAL EQUIPMENT & DEVICES 5.23%
Cambridge Heart*~ ............................ 77,000 731,500
Cambridge Heart*^~ ........................... 600,000 5,130,000
Cardiometrics Inc* ........................... 322,500 1,955,157
Clarus Medical Systems
Warrants (Exp 2000)*@^~ ................... 2,224 0
Diametrics Medical* .......................... 83,333 348,957
Electroscope Inc*^~ .......................... 399,000 920,194
Guidant Corp ................................. 400,000 27,300,000
KeraVision Inc* .............................. 206,185 1,752,573
Metra Biosystems* ............................ 275,081 1,052,185
ResMed Inc*~ ................................. 445,000 7,787,500
UROHEALTH Systems A* ......................... 25,000 196,875
Ventana Medical Systems* ..................... 29,600 292,300
----------
47,467,241
----------
NUTRITIONALS 0.03%
Crown Laboratories*^ ................. 429,692 273,928
-----------
PERSONAL CARE 2.98%
Sanofi SA++ .......................... FR 290,000 27,079,970
-----------
PHARMACY MANAGEMENT 0.00%
Medical Associates of America*^ ...... 502,935 1
-----------
PHYSICIANS PRACTICE
MANAGEMENT 1.18%
Advanced Health*^~ ................... 687,088 10,667,039
-----------
TOTAL COMMON STOCKS
(Cost $639,634,967) ............... 741,584,874
-----------
PREFERRED STOCKS 1.13%
BIOTECHNOLOGY 0.32%
Ingenex Inc, Series B, Pfd*^ ......... 103,055 600,000
MedClone Inc, Series G Conv Pfd*^ .... 581,396 1
Osiris Therapeutics, Series C
Conv Pfd*^ ........................ 382,353 1,300,000
Unisyn Technologies
Series A, Conv Pfd*^~ 359,501 359,501
<PAGE>
Series B, Pfd*^~ ................... 250,500 250,500
Series C, Pfd*^~ ................... 349,376 436,720
-----------
2,946,722
-----------
INFORMATION MANAGEMENT 0.52%
Multum Information Services
Series C, Pfd*^ .................... 571,429 1,468,573
Physicians Online, Series A Pfd*^~ .... 361,350 3,219,629
-----------
4,688,202
-----------
MEDICAL EQUIPMENT & DEVICES 0.29%
Clarus Medical Systems Series I, Pfd*^~ 106,664 533,320
Series II, Pfd*^~ .................. 22,239 111,195
Janus Biomedical, Series A
Conv Pfd*^~ ........................ 400,000 1,000,000
OrbTek Inc, Series A Conv Pfd*^ ....... 476,190 999,999
-----------
2,644,514
-----------
TOTAL PREFERRED STOCKS
(Cost $10,021,518) ................. 10,279,438
-----------
FIXED INCOME SECURITIES 0.00%
BIOTECHNOLOGY 0.00%
MedClone Inc, Promissory Notes
10.000%, 6/30/1996*^** ............. 36,840 1
10.000%, 12/31/1996*^~~ ............ 36,840 1
7.000%, 4/30/1997*^ ................ 27,630 27,630
-----------
27,632
-----------
PHARMACY MANAGEMENT 0.00%
Medical Associates of America
Conv Sr Notes*^>>
7.000%, 2/28/1999 .................. 1,689,904 100
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $1,791,214) .................. 27,732
-----------
OTHER SECURITIES 0.56%
BIOTECHNOLOGY 0.56%
Axogen Ltd Units*~ (Each unit
consists of one cmn shr of
<PAGE>
Axogen and one wrnt to purchase
ELAN representing one ADR)
(Cost $3,555,000) .................. BD 197,500 5,036,250
-----------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 16.68%
CONSUMER FINANCE 3.95%
American Express Credit
5.600%, 5/1/1997 ................... 6,468,000 6,468,000
5.500%, 5/5/1997 ................... 29,396,000 29,396,000
-----------
35,864,000
-----------
FINANCIAL 3.30%
Associates Corp of North America
5.600%, 5/1/1997 ................... 30,000,000 30,000,000
-----------
INSURANCE 5.47%
American General
5.500%, 5/7/1997 ................... 19,700,000 19,700,000
CIGNA Corp
5.580%, 5/5/1997 ................... 30,000,000 30,000,000
-----------
49,700,000
-----------
MACHINERY 3.96%
Deere & Co 5.420%, 5/2/1997 ........... 35,999,000 35,999,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $151,563,000) ................ 151,563,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $806,565,699#) ............... 908,491,294
===========
LEISURE Portfolio
COMMON STOCKS 88.32%
BEVERAGES 2.41%
Seagram Co Ltd CA 120,000 4,590,000
------------
BROADCASTING 9.25%
Central European Media
Enterprises Ltd Class A* BD 92,800 2,633,200
Evergreen Media Class A* 82,500 2,670,937
Heritage Media Class A* 65,400 1,193,550
<PAGE>
Lin Television* 75,000 3,103,125
TCI Satellite Entertainment
Series A* 15,000 112,500
Television Broadcasts Ltd HK 200,000 821,019
Television Broadcasts Ltd ADR HK 450,000 1,847,250
ValueVision International
Class A* 310,000 1,065,625
Viacom Inc Class A* 33,040 879,690
Class B* 68,802 1,840,454
Yorkshire-Tyne Tees Television
Holdings PLC UK 79,000 1,403,630
------------
17,570,980
------------
CABLE 9.42%
Adelphia Communications Class A* 45,000 253,125
Comcast Cable Partners Ltd
Class A* UK 110,000 1,251,250
Comcast Corp Special Class A 201,078 3,166,978
Tele-Communications Inc -
International Series A* 285,700 3,714,100
Liberty Media Group Series A* 243,750 4,585,547
TCI Group Series A* 150,000 2,071,875
United Video Satellite Group
Class A* 185,000 2,867,500
------------
17,910,375
------------
COMPUTER RELATED 1.62%
Bell & Howell* 130,000 3,071,250
------------
CONSUMER - JEWELRY,
NOVELTIES & GIFTS 0.37%
TAG Heuer International SA
Sponsored ADR* SZ 50,000 700,000
------------
ENTERTAINMENT 3.92%
Granada Group PLC UK 90,000 1,301,163
K2 Inc 200,000 5,225,000
Metromedia International Group* 100,000 931,250
------------
7,457,413
------------
GAMING 2.63%
Crown Ltd* AS 283,440 494,090
<PAGE>
Grand Casinos* 65,000 715,000
MGM Grand* 70,000 2,362,500
Mirage Resorts* 71,000 1,428,875
------------
5,000,465
------------
GOLD & PRECIOUS
METALS MINING 3.64%
DeBeers Consolidated Mines
Deferred ADR SF 192,000 6,909,005
------------
HEALTH CARE RELATED 1.08%
Bausch & Lomb 51,000 2,059,125
------------
HOUSEHOLD FURNITURE
& APPLIANCES 2.52%
Harman International Industries 124,970 4,780,102
------------
LEISURE TIME 10.14%
Amalgamated Holdings Ltd AS 438,908 2,418,815
Carnival Corp Class A 164,200 6,054,875
Disney (Walt) Co 85,233 6,989,106
Gaylord Entertainment Class A 42,059 888,496
Premier Parks* 17,500 518,438
Sodak Gaming* 30,000 352,500
Steiner Leisure Ltd* 59,400 1,440,450
Vail Resorts* 30,000 611,250
------------
19,273,930
------------
LODGING - HOTELS 4.84%
Extended Stay America* 153,400 2,320,175
Hilton Hotels 220,000 5,940,000
Interstate Hotels* 13,300 334,162
Suburban Lodges of America* 37,000 596,625
------------
9,190,962
------------
PUBLISHING 15.49%
Belo (A H) Corp Series A 120,000 4,320,000
Central Newspapers Class A 10,000 538,750
McClatchy Newspapers Class A 87,500 2,198,438
McGraw-Hill Cos 70,000 3,561,250
New York Times Class A 20,000 865,000
News Corp Ltd ADR AS 70,000 1,295,000
<PAGE>
Pearson PLC UK 50,000 575,212
Scholastic Corp* 40,000 1,000,000
Scripps (E W) Co Class A 70,000 2,660,000
Time Warner 190,000 8,550,000
Times Mirror Series A 70,000 3,867,500
------------
29,431,150
------------
REAL ESTATE
INVESTMENT TRUST 1.12%
Golf Trust of America* 25,000 637,500
Mills Corp 59,000 1,482,375
------------
2,119,875
------------
RESTAURANTS 0.82%
IHOP Corp* 43,000 1,128,750
Landry's Seafood Restaurants* 30,000 421,407
------------
1,550,157
------------
RETAIL 5.55%
Harcourt General 94,000 4,347,500
Rite Aid 55,000 2,530,000
Wal-Mart Stores 130,000 3,672,500
------------
10,550,000
------------
SERVICES 9.63%
Avis Europe PLC* UK 550,000 1,186,932
CUC International* 128,667 2,718,090
Cordiant PLC* UK 1,475,000 3,087,402
Katz Media Group* 54,500 337,219
Omnicom Group 110,000 5,830,000
Sotheby's Holdings Class A 135,000 2,143,125
Sylvan Learning Systems* 15,000 451,875
WPP Group PLC UK 625,000 2,545,454
------------
18,300,097
------------
TELECOMMUNICATIONS -
LONG DISTANCE 0.22%
Rogers Communications
Class B Representing
Non-Voting Shrs* CA 80,000 420,842
------------
<PAGE>
TELEPHONE 1.41%
US WEST Media Group* 155,000 2,673,750
------------
TOYS 2.24%
Mattel Inc 100,196 2,792,958
Nintendo Co Ltd JA 20,000 1,462,528
------------
4,255,486
------------
TOTAL COMMON STOCKS
(Cost $145,755,526) 167,814,964
------------
PREFERRED STOCKS 1.89%
ENTERTAINMENT 0.33%
Village Roadshow Ltd Pfd AS 250,000 635,131
------------
PUBLISHING 1.56%
News Corp Ltd Sponsored ADR
Representing Ltd Voting, Pfd AS 196,000 2,964,500
------------
TOTAL PREFERRED STOCKS
(Cost $4,366,523) 3,599,631
------------
FIXED INCOME SECURITIES 1.15%
BROADCASTING 1.15%
United International Holdings
Sr Secured Discount Notes
Zero Coupon, 11/15/1999
(Cost $2,181,602) 3,000,000 2,182,500
------------
OTHER SECURITIES 1.24%
BROADCASTING 1.24%
United International Holdings
Units* (Each unit consists of
one $1,000 face amount Sr
Secured Discount Note, Zero
Coupon, 1/15/1999 and 1 wrnt
to purchase 4.535 shrs of cmn stock)
(Cost $2,376,137) 3,225 2,354,250
------------
SHORT-TERM INVESTMENTS -
COMMERCIAL PAPER 7.40%
FINANCIAL 2.14%
Associates Corp of North America
<PAGE>
5.600%, 5/1/1997 4,059,000 4,059,000
------------
OIL & GAS RELATED 5.26%
Chevron Oil Finance
5.480%, 5/1/1997 10,000,000 10,000,000
------------
TOTAL SHORT-TERM INVESTMENTS
Cost $14,059,000) 14,059,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $168,738,788)
(Cost for Income Tax Purposes
$168,749,288) 190,010,345
============
TECHNOLOGY Portfolio
COMMON STOCKS 75.12%
BIOTECHNOLOGY 1.45%
Cephalon Inc* ............................ 50,000 837,500
INCYTE Pharmaceuticals* .................. 112,500 4,781,250
Sepracor Inc* ............................ 300,000 5,850,000
Titan Pharmaceuticals*^ .................. 244,108 549,243
---------
12,017,993
----------
CABLE 0.00%
Future Communications*^~ ................... 160,000 1
----------
CHEMICALS 0.68%
Ionics Inc* ................................ 123,400 5,676,400
----------
COMMUNICATIONS - EQUIPMENT
& MANUFACTURING 9.58%
AVX Corp ................................... 75,000 1,678,125
Allen Telecom* ............................. 107,000 1,845,750
Ericsson (L M) Telephone ADR
Representing Class B Shrs ............... 475,000 15,971,875
Motorola Inc ............................... 340,000 19,465,000
Nokia Corp Sponsored ADR
Representing A Shrs ..................... 290,000 18,741,250
Pittway Corp Class A ....................... 242,700 12,923,775
Powerwave Technologies* .................... 16,500 274,313
Scientific-Atlanta Inc ..................... 500,000 8,000,000
Voice Control Systems* ..................... 150,000 731,250
<PAGE>
----------
79,631,338
----------
COMPUTER SOFTWARE & SERVICES 17.02%
Accelr8 Technology* .......................... 25,000 309,375
Adobe Systems ................................ 125,000 4,890,625
Ascend Communications* ....................... 400,000 18,300,000
BMC Software* ................................ 30,000 1,297,500
Cellular Technical Services*~ ................ 1,000,000 14,500,000
CIBER Inc* ................................... 75,000 2,681,250
Computer Associates
International ............................. 40,000 2,080,000
Computer Horizons* ........................... 75,000 3,262,500
Electronic Arts* ............................. 40,000 965,000
Innovus Corp* ................................ 115,000 244,375
Keane Inc* ................................... 200,000 9,275,000
Microsoft Corp* .............................. 386,000 46,899,000
PLATINUM technology* ......................... 125,000 1,500,000
SCI Systems* ................................. 400,000 24,700,000
SEEC Inc* .................................... 135,000 1,569,375
State Of The Art* ............................ 75,000 693,750
Sybase Inc* .................................. 100,000 1,475,000
Symantec Corp* ............................... 100,000 1,437,500
VIASOFT Inc* ................................. 115,000 4,887,500
Xionics Document Technologies* ............... 50,000 581,250
-----------
141,549,000
-----------
COMPUTER SYSTEMS 0.76%
Sequent Computer Systems* .................. 400,000 6,350,000
-----------
COMPUTERS - HARDWARE 7.14%
Data General* .............................. 100,000 1,875,000
International Business Machines ............ 222,500 35,766,875
Kentek Information Systems ................. 125,000 843,750
Lexmark International Group
Class A* ................................ 900,000 20,925,000
-----------
59,410,625
-----------
COMPUTERS - NETWORKING 0.22%
Cisco Systems* ............................. 35,000 1,811,250
-----------
COMPUTERS - PERIPHERALS 0.70%
Logitech International SA
<PAGE>
Sponsored ADR* ............................ 219,000 4,024,125
Storage Technology* .......................... 50,000 1,756,250
----------
5,780,375
----------
DISTRIBUTION 0.27%
Ingram Micro Class A* ........................ 100,000 2,275,000
----------
ELECTRICAL EQUIPMENT 1.58%
KEMET Corp* .................................. 75,000 1,462,500
Kent Electronics* ............................ 166,000 4,150,000
Sanmina Corp* ................................ 150,000 7,500,000
----------
13,112,500
----------
ELECTRONICS - INSTRUMENTS 0.29%
SanDisk Corp* ................................ 50,000 637,500
Vishay Intertechnology* ...................... 75,000 1,809,375
----------
2,446,875
-----------
ELECTRONICS -
SEMICONDUCTOR 15.46%
Analog Devices* ........................ 540,000 14,445,000
Cymer Inc* ............................. 60,000 2,467,500
Dallas Semiconductor ................... 550,000 20,075,000
HADCO Corp* ............................ 250,000 10,687,500
Intel Corp ............................. 225,000 34,453,125
KLA Instruments* ....................... 65,000 2,892,500
LSI Logic* ............................. 400,000 15,300,000
Lattice Semiconductor* ................. 50,000 2,793,750
MRV Communications* .................... 225,000 4,640,625
Micro Linear* .......................... 200,000 3,175,000
National Semiconductor* ................ 100,000 2,500,000
Texas Instruments ...................... 170,000 15,172,500
-----------
128,602,500
-----------
ENTERTAINMENT 1.76%
Sony Corp American Shrs ................ 200,000 14,675,000
-----------
GAMING 0.22%
Midway Games* .......................... 100,000 1,800,000
-----------
HEALTH CARE DRUGS -
<PAGE>
PHARMACEUTICALS 0.19%
NaPro BioTherapeutics* ..................... 200,000 1,550,000
----------
HEALTH CARE RELATED 0.64%
HBO & Co ................................... 100,000 5,350,000
----------
OFFICE EQUIPMENT
& SUPPLIES 0.30%
Xerox Corp ................................. 40,000 2,460,000
----------
OIL & GAS RELATED 9.21%
Dresser Industries ......................... 200,000 5,975,000
Halliburton Co ............................. 250,000 17,656,250
Schlumberger Ltd ........................... 350,000 38,762,500
Smith International* ....................... 300,000 14,212,500
----------
76,606,250
----------
RETAIL 1.57%
Tandy Corp ................................. 250,000 13,093,750
----------
SERVICES 3.50%
Datamark Holding* .......................... 60,000 322,500
Equifax Inc ................................ 350,000 10,062,500
National Education* ........................ 300,000 6,075,000
VeriFone Inc* .............................. 250,000 12,687,500
----------
29,147,500
----------
TELECOMMUNICATIONS -
CELLULAR & WIRELESS 0.16%
NEXTEL Communications Class A* ............. 100,000 1,318,750
----------
TELECOMMUNICATIONS -
LONG DISTANCE 1.22%
ADC Telecommunications* .................... 75,000 1,959,375
P-COM Inc* ................................. 50,000 1,431,250
Premiere Technologies* ..................... 200,000 4,775,000
Tadiran Telecommunications Ltd ............. 100,000 1,950,000
----------
10,115,625
----------
TELEPHONE 0.98%
SBC Communications ......................... 146,290 8,119,095
----------
<PAGE>
TOYS 0.22%
Nintendo Co 25,000 1,828,160
------------
TOTAL COMMON STOCKS
(Cost $561,710,730) 624,727,987
------------
PREFERRED STOCKS 0.14%
BIOTECHNOLOGY 0.03%
Ingenex Inc, Series B, Pfd 51,527 300,000
------------
CABLE 0.11%
Alpine Group, 9.000%
Cum Conv, Sr Pfd^ 1,000 900,000
------------
TOTAL PREFERRED STOCKS
(Cost $1,300,000) 1,200,000
------------
SHORT-TERM INVESTMENTS 24.74%
Commercial Paper 21.74%
AUTOMOBILES 3.76%
General Motors Acceptance
5.440%, 5/6/1997 31,292,000 31,292,000
------------
FINANCIAL 6.51%
General Electric Capital
5.410%, 5/1/1997 27,063,000 27,063,000
Heller Financial
5.510%, 5/1/1997 27,063,000 27,063,000
------------
54,126,000
------------
INSURANCE 3.61%
CIGNA Corp 5.580%, 5/7/1997 30,000,000 30,000,000
------------
INVESTMENT BANK/BROKER FIRM 3.77%
Merrill Lynch & Co
5.450%, 5/2/1997 31,325,000 31,320,253
------------
RETAIL 4.09%
Sears Roebuck Acceptance
5.510%, 5/8/1997 34,030,000 34,030,000
------------
TOTAL COMMERCIAL PAPER
(Cost $180,768,253) 180,768,253
------------
<PAGE>
Repurchase Agreements 3.00%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$24,949,680 (Collateralized by
US Treasury Bonds due 2/15/2016
at 9.250%, value $25,842,948)
(Cost $24,946,000) 24,946,000 24,946,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $205,714,253) 205,714,253
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $768,724,983)
(Cost for Income Tax Purposes
$770,819,941) 831,642,240
============
UTILITIES Portfolio
COMMON STOCKS 92.94%
OIL & GAS RELATED 3.29%
PanEnergy Corp ............................. 34,000 1,504,500
Union Pacific Resources Group .............. 62,000 1,681,750
Williams Cos ............................... 34,000 1,491,750
---------
4,678,000
---------
TELECOMMUNICATIONS 14.43%
AT&T Corp .................................. 84,900 2,844,150
Brooks Fiber Properties* ................... 52,700 1,146,225
Clearnet Communications
Class A* .................................. 28,300 208,713
Deutsche Telekom* .......................... 81,000 1,757,798
LCI International* ......................... 84,900 1,411,463
MCI Communications ......................... 86,100 3,282,563
McLeod Inc* ................................ 69,000 1,267,875
NEXTEL Communications
Class A* .................................. 136,000 1,793,500
Portugal Telecom SA
Sponsored ADR ............................. 21,800 806,600
Sprint Corp ................................ 68,000 2,983,500
Viatel Inc* ................................ 141,700 885,625
WorldCom Inc* .............................. 89,800 2,155,200
<PAGE>
----------
20,543,212
----------
Utilites 75.22%
ELECTRIC 35.86%
Allegheny Power System ....................... 50,000 1,312,500
American Electric Power ...................... 37,000 1,498,500
Baltimore Gas & Electric ..................... 27,900 711,450
CMS Energy ................................... 46,700 1,482,725
Carolina Power & Light ....................... 41,300 1,404,200
Central & South West ......................... 65,000 1,308,125
CINergy Corp ................................. 44,100 1,466,325
CIPSCO Inc ................................... 10,000 345,000
Commonwealth Energy Systems SBI .............. 21,700 474,687
DTE Energy ................................... 52,500 1,404,375
Dominion Resources ........................... 38,200 1,313,125
Duke Power ................................... 34,300 1,504,912
Edison International ......................... 70,000 1,470,000
Entergy Corp ................................. 57,100 1,334,712
FPL Group .................................... 33,000 1,472,625
Florida Progress ............................. 24,700 759,525
GPU Inc ...................................... 43,000 1,386,750
Houston Industries ........................... 65,700 1,314,000
IES Industries ............................... 120,000 3,480,000
Idaho Power .................................. 70,000 2,047,500
Interstate Power ............................. 21,900 626,887
NIPSCO Industries ............................ 21,000 829,500
Northern States Power ........................ 32,100 1,460,550
Ohio Edison .................................. 67,500 1,350,000
Oklahoma Gas & Electric ...................... 16,000 664,000
PacifiCorp ................................... 74,100 1,472,738
Pacific Gas & Electric ....................... 68,300 1,639,200
PECO Energy .................................. 69,000 1,362,750
Pennsylvania Power & Light
Resources ................................. 131,500 2,580,687
Pinnacle West Capital ........................ 48,500 1,382,250
Potomac Electric Power ....................... 30,000 675,000
Public Service of Colorado ................... 87,000 3,371,250
SCANA Corp ................................... 56,400 1,360,650
Southern Co .................................. 70,300 1,432,363
TNP Enterprises .............................. 30,200 634,200
Texas Utilities .............................. 37,900 1,279,125
Union Electric ............................... 40,000 1,425,000
----------
51,037,186
----------
<PAGE>
NATURAL GAS 10.73%
Chesapeake Utilities ................... 39,400 659,950
Coastal Corp ........................... 47,000 2,232,500
Columbia Gas System .................... 26,000 1,608,750
Enron Corp ............................. 42,000 1,580,250
NGC Corp ............................... 61,625 1,086,141
New Jersey Resources ................... 35,000 1,010,625
ONEOK Inc .............................. 51,000 1,517,250
Sonat Inc .............................. 61,000 3,484,625
TransCanada PipeLines .................. 115,000 2,098,750
----------
15,278,841
----------
TELEPHONE 28.63%
ALLTEL Corp ................................ 66,500 2,094,750
Ameritech Corp ............................. 72,000 4,401,000
Bell Atlantic .............................. 76,700 5,196,425
BellSouth Corp ............................. 109,000 4,850,500
Century Telephone Enterprises .............. 46,700 1,395,162
Cincinnati Bell ............................ 24,500 1,372,000
GTE Corp ................................... 101,000 4,633,375
NYNEX Corp ................................. 103,400 5,350,950
SBC Communications ......................... 84,000 4,662,000
Southern New England
Telecommunications ........................ 57,500 2,098,750
Telefonica del Peru SA
Sponsored ADR
Representing Class B Shrs ................. 50,000 1,200,000
US WEST Communications Group ............... 99,300 3,487,913
-----------
40,742,825
-----------
TOTAL UTILITIES ......................... 107,058,852
-----------
TOTAL COMMON STOCKS
(Cost $130,698,099) ..................... 132,280,064
-----------
PREFERRED STOCKS 0.63%
TELECOMMUNICATIONS 0.63%
Telecom Brasileiras SA
Sponsored ADR Representing
Pfd Shrs
(Cost $785,343) ................ 7,800 895,050
-----------
<PAGE>
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 6.43%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$9,157,351 (Collateralized by
US Treasury Bonds due 2/15/2016
at 9.250%, value $9,488,323)
(Cost $9,156,000) 9,156,000 9,156,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $140,639,442#) 142,331,114
------------
* Security is non-income producing.
# Also represents cost for income tax purposes.
@ Security has no market value at April 30, 1997.
~ Security is an affiliated company (See Notes).
++ Security has been designated as collateral for forward foreign currency
contracts.
** Security is a defaulted security with respect to cumulative interest
payments of $921 at April 30, 1997. The security has been devalued to $1.
~~ Security is a defaulted security with respect to cumulative interest
payments of $4,001 at April 30, 1997. The security has been devalued to $1.
> Security is a defaulted security with respect to cumulative interest
payments of $79,191 at April 30, 1997. The security has been devalued to
$100.
^ The following are restricted securities at April 30, 1997:
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- ------------------------------------------------------------------------
Environmental Services Portfolio
Cyclean Inc, Series D, Pfd 2/23/94 500,000 0.00%
Health Sciences Portfolio
Advanced Health 8/31/93-
3/16/94 2,048,693 1.23%
Cambridge Heart 9/29/93 1,200,000 0.59
Clarus Medical Systems
Series I, Pfd 12/23/92 2,000,000 0.06
Series II, Pfd 5/3/95 111,196 0.01
Warrants 5/3/95 0 0.00
Crown Laboratories 8/24/93 644,544 0.03
<PAGE>
Ecogen Technologies I 11/18/92-
1/28/94 1,140,000 0.00
Electroscope Inc 4/27/93-
5/3/96 1,039,500 0.11
Ingenex Inc, Series B, Pfd 9/27/94 600,000 0.07
Janus Biomedical Series A,
Conv Pfd 3/2/94 1,000,000 0.12
MedClone Inc
Promissory Notes
10.000% 12/7/94-
6/29/95 36,840 0.00
Promissory Notes
7.000% 3/24/97 27,630 0.00
Series G, Conv Pfd 10/21/93 1,000,001 0.00
Warrants 10/21/93 0 0.00
Medical Associates of America 2/21/92-
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
Multum Information Services,
Series C, Pfd 12/28/93 1,000,001 0.17
OrbTek Inc, Series A Conv Pfd 5/13/94 999,999 0.12
Osiris Therapeutics Series C,
Conv Pfd 5/26/94 1,300,000 0.15
Physicians Online Series A, Pfd 8/31/93 963,600 0.37
Sparta Pharmaceuticals 11/12/93 1,000,000 0.03
Titan Pharmaceuticals 7/19/94 2,000,035 0.13
Unisyn Technologies 2/28/94 1,500,000 0.00
Unisyn Technologies
Series A, Conv Pfd 12/27/94 359,501 0.04
Series B, Pfd 2/5/96 250,500 0.03
Series C, Pfd 4/25/97 436,720 0.05
Xenometrix Inc 1/7/94 1,400,000 0.09
--------
3.40%
========
Technology Portfolio
Alpine Group, 9.000%
Cum Conv Sr Pfd 4/21/92 1,000,000 0.11%
Future Communications 8/9/93-
8/18/93 3,084,375 0.00
Ingenex Inc, Series B Pfd 9/27/94 300,000 0.04
Titan Pharmaceuticals 7/19/94 1,000,035 0.07
-------
0.22%
=======
Forward Foreign Currency Contracts
Open at April 30, 1997:
Currency Currency Unrealized
Units Value Gain
Currency/Value Date Sold (US$) (Loss)
Health Sciences Portfolio
French Franc
5/14/1997 108,000,000 19,633,761 550,466
6/10/1997 71,000,000 12,416,035 104,608
German Mark
5/14/1997 54,000,000 33,226,441 997,256
Swiss Franc
6/9/1997 59,000,000 39,879,170 (194,185)
--------------------------
105,155,407 1,458,145
==========================
Summary of Investment by Country
% of
Country Investment
Country Code Securities Value
- --------------------------------------------------------------------------------
Gold Portfolio
Australia ....................... AS 9.20% 18,955,690
Canada .......................... CA 50.17 103,292,304
Cayman Islands .................. CJ 2.79 5,740,000
France .......................... FR 1.47 3,023,328
Ghana ........................... GH 1.73 3,562,500
South Africa .................... SF 8.64 17,796,100
Switzerland ..................... SZ 0.84 1,722,244
United States ................... US 25.16 51,805,241
-----------
100.00% 205,897,407
===========
Health Sciences Portfolio
Bermuda ............................... BD 0.55% 5,036,250
France ................................ FR 4.95 44,941,957
<PAGE>
Germany ............................... GM 4.75 43,136,785
Switzerland ........................... SZ 5.81 52,835,186
United Kingdom ........................ UK 7.47 67,841,250
United States ......................... US 76.47 694,699,866
-----------
100.00% 908,491,294
===========
Leisure Portfolio
Australia ....................... AS 4.11% 7,807,536
Bermuda ......................... BD 1.39 2,633,200
Canada .......................... CA 2.64 5,010,842
Hong Kong ....................... HK 1.40 2,668,269
Japan ........................... JA 0.77 1,462,528
South Africa .................... SF 3.64 6,909,005
Switzerland ..................... SZ 0.37 700,000
United Kingdom .................. UK 5.97 11,351,043
United States ................... US 79.71 151,467,922
-----------
100.00% 190,010,345
===========
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities
April 30, 1997
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment Securities:
At Cost~ ............................ $173,074,539 $ 19,256,012 $573,565,787 $234,219,382
========================================================================
At Value~ ........................... 169,676,868 18,913,722 688,708,643 205,897,407
Cash ................................... 0 10,175 157,664 0
Foreign Currency
(Cost $0, $0, $0 and $34,333,
respectively) ................................... 0 0 0 35,720
Receivables:
Investment Securities Sold ...................... 6,891,047 29,999 65,557,472 1,115,454
Fund Shares Sold ................................ 1,257,779 146,913 12,167,504 674,271
Dividends and Interest .......................... 219,670 7,405 1,429,229 563,139
Prepaid Expenses ................................... 106,647 117,929 151,341 100,011
-----------------------------------------------------------------------
TOTAL ASSETS ....................................... 178,152,011 19,226,143 768,171,853 208,386,002
-----------------------------------------------------------------------
LIABILITIES
Payables:
Custodian ....................................... 587,979 0 0 5,885
Investment Securities Purchased ................. 1,312,500 0 0 2,579,317
Fund Shares Repurchased ......................... 3,630,466 26,034 1,667,320 1,892,845
<PAGE>
Accrued Expenses .................................... 9,383 3,756 31,290 37,640
-----------------------------------------------------------------------
TOTAL LIABILITIES ................................... 5,540,328 29,790 1,698,610 4,515,687
-----------------------------------------------------------------------
Net Assets at Value ................................. 172,611,683 19,196,353 766,473,243 203,870,315
=======================================================================
NET ASSETS
Paid-in Capital* .................................... 159,283,551 16,866,802 600,801,414 275,439,455
Accumulated Undistributed Net
Investment Income (Loss) ......................... 359,166 (18,558) 3,545,918 (30,660,347)
Accumulated Undistributed Net
Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions ..................................... 16,366,637 2,690,399 46,983,055 (12,588,205)
------------
Net Appreciation (Depreciation) of
Investment Securities and Foreign
Currency Transactions ............................ (3,397,671) (342,290) 115,142,856 (28,320,588)
------------
Net Assets at Value ................................. 172,611,683 19,196,353 766,473,243 203,870,315
============
Shares Outstanding .................................. 12,416,663 2,075,732 31,770,458 44,442,230
Net Asset Value, Offering and
Redemption Price per Share 13.90 9.25 24.13 4.59
========================================================================
</TABLE>
~ Investment securities at cost and value at April 30, 1997 include repurchase
agreements of $1,288,000, $5,569,000 and $4,929,000 for Energy, Environmental
Services and Gold 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.
<PAGE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Assets and Liabilities (Continued)
April 30, 1997
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment Securities:
At Cost~ ....................................... $ 806,565,699 $ 168,738,788 $ 768,724,983 $ 140,639,442
==========================================================================
At Value~ ...................................... 908,491,294 190,010,345 831,642,240 142,331,114
Cash .............................................. 180,948 0 352,346 68,958
Receivables:
Investment Securities Sold ..................... 10,463,453 126,960 34,488,285 790,595
Fund Shares Sold ............................... 1,439,101 52,472 8,607,722 174,929
Dividends and Interest ......................... 1,642,481 180,835 368,988 566,163
Appreciation on Forward Foreign
Currency Contracts ............................. 1,457,945 0 0 0
Prepaid Expenses and Other Assets ................. 76,979 43,257 138,964 105,659
--------------------------------------------------------------------------
TOTAL ASSETS ...................................... 923,752,201 190,413,869 875,598,545 144,037,418
--------------------------------------------------------------------------
LIABILITIES
Payables:
Custodian ...................................... 0 299,498 0 0
Distributions to Shareholders .................. 0 0 0 58,871
Investment Securities Purchased ................ 52,670,331 541,875 4,465,225 0
Fund Shares Repurchased ........................ 2,053,942 121,829 1,726,625 3,501,867
<PAGE>
Accrued Expenses and Other Payables ............... 69,786 26,373 39,926 15,040
--------------------------------------------------------------------------
TOTAL LIABILITIES ................................. 54,794,059 989,575 6,231,776 3,575,778
--------------------------------------------------------------------------
Net Assets at Value ............................... 868,958,142 189,424,294 869,366,769 140,461,640
=============-------------------------------------------------------------
NET ASSETS
Paid-in Capital* .................................. 631,854,948 154,531,049 741,684,972 136,299,296
Accumulated Undistributed Net
Investment Income (Loss) ....................... 833,611 (61,294) 2,676,537 117,283
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions ................................... 132,887,947 13,683,257 62,088,192 2,353,389
Net Appreciation of Investment
Securities and Foreign Currency
Transactions ................................... 103,381,636 21,271,282 62,917,068 1,691,672
--------------------------------------------------------------------------
Net Assets at Value ............................... 868,958,142 189,424,294 869,366,769 140,461,640
==========================================================================
Shares Outstanding ................................ 17,696,044 8,354,067 28,522,238 12,880,412
Net Asset Value, Offering and
Redemption Price per Share ....................... 49.10 22.67 30.48 10.91
==========================================================================
</TABLE>
~ Investment securities at cost and value at April 30, 1997 include repurchase
agreements of $24,946,000 and $9,156,00 for Technology and Utilities 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.
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations
Six Months Ended April 30, 1997
UNAUDITED
<TABLE>
<CAPTION>
Environmental Financial
Energy Services Services Gold
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends .......................................... $ 1,278,174 $ 119,038 $ 6,788,172 $ 1,039,959
Interest ........................................... 426,665 52,359 1,052,165 513,302
Foreign Taxes Withheld .......................... (44,984) (1,665) (63,723) (53,034)
-------------------------------------------------------------------------
TOTAL INCOME .................................... 1,659,855 169,732 7,776,614 1,500,227
-------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees ........................... 836,832 93,689 2,407,349 966,270
Transfer Agent Fees ................................ 340,308 113,110 873,703 532,568
Administrative Fees ................................ 21,770 6,874 56,997 24,328
Custodian Fees and Expenses ........................ 32,220 5,208 58,475 72,249
Directors' Fees and Expenses ....................... 7,541 4,278 15,635 9,762
Professional Fees and Expenses ..................... 9,239 6,306 16,428 10,802
Proxy Fees and Expenses ............................ 54,772 34,617 0 104,237
Registration Fees and Expenses ..................... 51,815 19,495 53,137 66,065
Reports to Shareholders ............................ 30,294 14,848 99,171 52,909
Other Expenses ..................................... 2,917 1,137 7,857 9,116
-------------------------------------------------------------------------
TOTAL EXPENSES .................................. 1,387,708 299,562 3,588,752 1,848,306
<PAGE>
Fees and Expenses Absorbed by Investment Adviser 0 (95,353) 0 0
Fees and Expenses Paid Indirectly ............... (85,983) (4,624) (173,464) (85,079)
-------------------------------------------------------------------------
NET EXPENSES .................................... 1,301,725 199,585 3,415,288 1,763,227
-------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ....................... 358,130 (29,853) 4,361,326 (263,000)
-------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions ................... 16,964,648 2,721,298 46,991,767 (4,310,407)
Change in Net Appreciation (Depreciation)of
Investment Securities and Foreign Currency
Transactions ................... (20,829,089) (3,198,333) 25,973,657 (59,450,649)
-------------------------------------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES ........................... (3,864,441) (477,035) 72,965,424 (63,761,056)
-------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations .......................... (3,506,311) (506,888) 77,326,750 (64,024,056)
=========================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Operations (Continued)
Six Months Ended April 30, 1997
UNAUDITED
<TABLE>
<CAPTION>
Health
Sciences Leisure Technology Utilities
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends ...................................... $ 4,534,253 $ 960,671 $ 1,681,597 $ 2,642,947
Interest ....................................... 1,316,073 532,425 5,405,559 289,757
Foreign Taxes Withheld ...................... (179,644) (20,138) (136,330) (9,765)
-----------------------------------------------------------------------------
TOTAL INCOME ................................ 5,670,682 1,472,958 6,950,826 2,922,939
-----------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees ....................... 3,064,346 828,065 2,822,013 554,252
Transfer Agent Fees ............................ 1,462,508 589,595 1,267,079 272,485
Administrative Fees ............................ 74,380 21,561 67,771 16,085
Custodian Fees and Expenses .................... 120,719 34,751 73,964 15,460
Directors' Fees and Expenses ................... 26,446 9,605 22,122 6,820
Professional Fees and Expenses ................. 23,727 10,671 19,108 8,767
Registration Fees and Expenses ................. 63,584 25,266 77,289 27,180
Reports to Shareholders ........................ 202,139 75,759 153,932 29,315
Other Expenses ................................. 17,688 1,889 12,812 2,581
-----------------------------------------------------------------------------
TOTAL EXPENSES .............................. 5,055,537 1,597,162 4,516,090 932,945
Fees and Expenses Absorbed
by Investment Adviser ....................... 0 0 0 (69,395)
<PAGE>
Fees and Expenses Paid Indirectly ........... (224,679) (64,313) (251,763) (50,750)
-----------------------------------------------------------------------------
NET EXPENSES ................................ 4,830,858 1,532,849 4,264,327 812,800
-----------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ................... 839,824 (59,891) 2,686,499 2,110,139
-----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions ................................ 134,042,634 13,698,674 63,279,914 2,509,519
Change in Net Depreciation of
Investment Securities and
Foreign Currency Transactions ............... (90,181,771) (8,653,523) (52,473,744) (5,632,725)
-----------------------------------------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES ....................... 43,860,863 5,045,151 10,806,170 (3,123,206)
-----------------------------------------------------------------------------
Net Increase (Decrease) in
Net Assets from Operations .................. 44,700,687 4,985,260 13,492,669 (1,013,067)
=============================================================================
</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
------------------------ ------------------------ --------------------------
1997 1996 1997 1996 1997 1996
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) .. $ 358,130 $ 580,681 $ (29,853) $ 150,546 $ 4,361,326 $ 11,291,536
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions ...... 6,964,648 20,895,131 2,721,298 4,012,079 46,991,767 49,662,621
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions ...... (20,829,089) 17,796,621 (3,198,333) 2,319,724 25,973,657 59,699,110
-------------------------- ------------------------- -------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS ................. (3,506,311) 39,272,433 (506,888) 6,482,349 77,326,750 120,653,267
-------------------------- ------------------------- -------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income ......... 0 (580,681) 0 (149,211) (818,190) (11,291,536)
In Excess of Net
Investment Income .......... 0 (3,529) 0 0 0 (1,199,518)
<PAGE>
Net Realized Gain on
Investment Securities ...... (16,776,638) 0 (1,266,745) 0 (48,464,786) (24,567,717)
-------------------------- ------------------------- --------------------------
TOTAL DISTRIBUTIONS ........... (16,776,638) (584,210) (1,266,745) (149,211) (49,282,976) (37,058,771)
-------------------------- ------------------------- --------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales
of Shares .................. 498,041,686 658,993,329 34,234,548 122,232,471 999,529,494 717,132,503
Reinvestment of
Distributions .............. 16,018,098 557,255 1,227,703 161,433 45,849,246 35,465,349
-------------------------- ------------------------- --------------------------
514,059,784 659,550,584 35,462,251 122,393,904 1,045,378,740 752,597,852
Amounts Paid for Repurchases
of Shares .................. (557,334,564) (510,352,997) (41,285,959) (124,689,299) (849,637,208) (703,552,727)
-------------------------- ------------------------- --------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM FUND
SHARE TRANSACTIONS ......... (43,274,780) 149,197,587 (5,823,708) (2,295,395) 195,741,532 49,045,125
-------------------------- ------------------------- --------------------------
Total Increase (Decrease)
in Net Assets .............. (63,557,729) 187,885,810 (7,597,341) 4,037,743 223,785,306 132,639,621
NET ASSETS
Beginning of Period ........... 236,169,412 48,283,602 26,793,694 22,755,951 542,687,937 410,048,316
-------------------------- ------------------------- --------------------------
End of Period ................. 172,611,683 236,169,412 19,196,353 26,793,694 766,473,243 542,687,937
========================== ========================= ==========================
Accumulated Undistributed
Net Investment Income (Loss)
Included in Net Assets
at End of Period .... 359,166 1,036 (18,558) 11,295 3,545,918 2,782
--------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold ................... 33,887,846 52,683,481 3,372,276 12,863,444 41,866,444 34,784,265
<PAGE>
Shares Issued from Reinvestment
of Distributions .............. 1,157,361 37,088 126,567 16,188 2,126,484 1,767,754
------------------------- ------------------------- -------------------------
35,045,207 52,720,569 3,498,843 12,879,632 43,992,928 36,552,019
Shares Repurchased ............ (38,345,282) (41,791,100) (4,066,202) (13,037,396) (35,881,242) (34,528,936)
-------------------------- ------------------------- -------------------------
Net Increase (Decrease)
in Fund Shares ............. (3,300,075) 10,929,469 (567,359) (157,764) 8,111,686 2,023,083
========================= ========================= =========================
</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
-------------------------- -------------------------- --------------------------
1997 1996 1997 1996 1997 1996
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) .. $ (263,000) $ (228,896) $ 839,824 $ 1,222,415 $ (59,891) $ 480,349
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency
Transactions ............... (4,310,407) 41,924,779 134,042,634 137,904,104 13,698,674 6,689,537
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions ...... (59,450,649) 47,263,589 (90,181,771) 23,591,252 (8,653,523) 19,505,255
-------------------------- --------------------------- --------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS . (64,024,056) 88,959,472 44,700,687 162,717,771 4,985,260 26,675,141
-------------------------- --------------------------- --------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income ......... (64,910,003) 0 0 (1,216,776) 0 (480,349)
In Excess of Net
Investment Income .......... 0 0 0 0 0 (4,051)
Net Realized Gain on
<PAGE>
Investment Securities ...... 0 0 (138,287,137) (73,235,099) (6,649,728) (6,689,537)
In Excess of Net Realized
Gain on Investment
Securities ................. 0 0 0 0 0 (27,147,496)
-------------------------- --------------------------- -----------------------------
TOTAL DISTRIBUTIONS ........... (64,910,003) 0 (138,287,137) (74,451,875) (6,649,728) (34,321,433)
-------------------------- --------------------------- -----------------------------
FUND SHARE TRANSACTIONS
Proceeds from
Sales of Shares ............ 539,491,621 1,233,702,381 381,274,076 1,100,025,309 51,951,090 229,000,338
Reinvestment of
Distributions .............. 61,300,138 0 133,065,304 71,749,211 6,400,883 33,235,182
-------------------------- --------------------------- -----------------------------
600,791,759 1,233,702,381 514,339,380 1,171,774,520 58,351,973 262,235,520
Amounts Paid for
Repurchases of Shares ...... (545,879,749)(1,196,548,485) (485,622,901) (1,187,138,111) (119,560,339) (267,472,664)
-------------------------- --------------------------- ------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
FUND SHARE TRANSACTIONS .... 54,912,010 37,153,896 28,716,479 (15,363,591) (61,208,366) (5,237,144)
-------------------------- --------------------------- ------------------------------
Total Increase (Decrease)
in Net Assets .............. (74,022,049) 126,113,368 (64,869,971) 72,902,305 (62,872,834) (12,883,436)
NET ASSETS
Beginning of Period ........... 277,892,364 151,778,996 933,828,113 860,925,808 252,297,128 265,180,564
-------------------------- --------------------------- ------------------------------
End of Period ................. 203,870,315 277,892,364 868,958,142 933,828,113 189,424,294 252,297,128
========================== =========================== ==============================
Accumulated Undistributed
(Distributions in Excess of) Net
Investment Income Included
in Net Assets at End of Period (30,660,347) 34,512,656 833,611 (6,213) (61,294) (1,403)
<PAGE>
---------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold ................... 89,244,971 159,903,190 7,404,856 20,091,872 2,272,539 9,926,200
Shares Issued from
Reinvestment of
Distributions .............. 11,026,209 0 2,788,461 1,369,450 286,265 1,556,657
-------------------------- -------------------------- ------------------------------
100,271,180 159,903,190 10,193,317 21,461,322 2,558,804 11,482,857
Shares Repurchased ............ (90,559,115) (154,311,942) (9,401,550) (21,613,551) (5,225,901) (11,613,010)
-------------------------- -------------------------- ------------------------------
Net Increase (Decrease)
in Fund Shares ............. 9,712,065 5,591,248 791,767 (152,229) (2,667,097) (130,153)
========================== ========================== ==============================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Strategic Portfolios, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Technology Utilities
Portfolio Portfolio
----------------------------- ----------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30 October 31 April 30 October 31
----------------------------- ----------------------------
1997 1996 1997 1996
UNAUDITED UNAUDITED
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income ................................ $ 2,686,499 $ 1,631,849 $ 2,110,139 $ 4,512,982
Net Realized Gain on Investment Securities
and Foreign Currency Transactions ................... 63,279,914 105,200,971 2,509,519 14,115,442
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions ............................... (52,473,744) 13,795,426 (5,632,725) 2,563,450
------------------------------- -------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ................................... 13,492,669 120,628,246 (1,013,067) 21,191,874
------------------------------- -------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income .............................. 0 (1,631,849) (2,110,108) (4,512,982)
In Excess of Net Investment Income ................. 0 (3,266) 0 (13,166)
Net Realized Gain on Investment Securities ......... (105,676,244) (96,107,659) (10,428,883) 0
------------------------------- -------------------------------
TOTAL DISTRIBUTIONS ................................ (105,676,244) (97,742,774) (12,538,991) (4,526,148)
------------------------------- -------------------------------
<PAGE>
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares ....................... 816,873,734 1,273,121,550 122,733,919 275,156,466
Reinvestment of Distributions ....................... 101,123,271 94,751,957 11,957,141 4,318,319
------------------------------ --------------------------------
917,997,005 1,367,873,507 134,691,060 279,474,785
Amounts Paid for Repurchases of Shares .............. (746,057,312) (1,164,257,096) (133,758,017) (277,526,457)
------------------------------ --------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS ....................... 171,939,693 203,616,411 932,143 1,948,328
------------------------------ --------------------------------
Total Increase (Decrease) in Net Assets ............. 79,756,118 226,501,883 (12,619,915) 18,614,054
NET ASSETS
Beginning of Period ................................. 789,610,651 563,108,768 153,081,555 134,467,501
------------------------------ --------------------------------
End of Period ....................................... 869,366,769 789,610,651 140,461,640 153,081,555
============================== ================================
Accumulated Undistributed (Distributions in
Excess of) Net Investment Income Included
in Net Assets at End of Period ..................... 2,676,537 (9,962) 117,283 117,252
--------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold ................................................ 25,663,479 39,668,920 10,628,429 23,673,545
Shares Issued from Reinvestment of Distributions ........... 3,251,623 3,238,131 1,073,117 371,817
------------------------------ --------------------------------
28,915,102 42,907,051 11,701,546 24,045,362
Shares Repurchased ......................................... (23,457,562) (36,244,761) (11,537,011) (24,000,218)
------------------------------ --------------------------------
Net Increase in Fund Shares ................................ 5,457,540 6,662,290 164,535 45,144
============================== ================================
</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, Utilities 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 income 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.
<PAGE>
Assets and liabilities initially expressed in terms of foreign
currencies are translated into U.S. dollars at the prevailing market rates
as quoted by one or more banks or dealers on the date of valuation. The
cost of securities is translated into U.S. dollars at the rates of
exchange prevailing when such securities were acquired. Income and
expenses are translated into U.S. dollars at the rates of exchange
prevailing when accrued.
B. REPURCHASE AGREEMENTS - Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to
ensure its market value exceeds the current market value of the repurchase
agreements including accrued interest.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the
dividend if such information is obtained subsequent to the ex dividend
date. Interest income, which may be comprised of stated coupon rate,
market discount, original issue discount and amortized premium, is
recorded on the accrual basis. Discounts and premiums 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.
Effective November 1, 1996, the Fund began accruing income using the
effective interest method which includes amortizing premiums on purchases
of portfolio securities as adjustments to income. This method of recording
income more closely reflects the economics of holding and disposing of
debt instruments. Prior to November 1, 1996, the Fund accrued coupon
interest income and original issue discount and accounted for purchased
premiums as capital gains or losses when realized upon disposition of the
associated security. The cumulative effect of applying this accounting
change was to decrease accumulated undistributed (distributions in excess
of) net investment income by $7,535 for Utilities Portfolio, and
insignificant for the remaining portfolios. Such accounting change had no
effect on net asset value per share.
The Fund may have elements of risk due to concentrated investments in
specific industries or 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.
<PAGE>
The Fund's use of short-term forward foreign currency contracts may
subject it to certain risks as a result of unanticipated movements in
foreign exchange rates. The Fund does not hold short-term forward foreign
currency contracts for trading purposes. The Fund may hold foreign
currency in anticipation of settling foreign security transactions and not
for investment purposes.
The net position of such forward contracts is presented in the
Statement of Assets and Liabilities and may have additional elements of
risk which may not necessarily be reflected.
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, 1996, Gold Portfolio had $1,051,643
in net capital loss carryovers which expire in the year 2003.
Net capital loss carryovers utilized in 1996 by Energy, Environmental
Services, Gold and Utilities Portfolios amounted to $4,454,421,
$2,731,233, $14,365,511 and $3,803,857, 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
<PAGE>
date. The Fund distributes net realized capital gains, if any, to its
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for market discounts, amortized premiums, foreign
currency transactions, nontaxable dividends, net operating losses and
expired capital loss carryforwards.
F. FORWARD FOREIGN CURRENCY CONTRACTS - The Fund enters into short-term
forward foreign currency contracts in connection with planned purchases or
sales of securities as a hedge against fluctuations in foreign exchange
rates pending the settlement of transactions in foreign securities. A
forward foreign currency contract is an agreement between contracting
parties to exchange an amount of currency at some future time at an agreed
upon rate. These contracts are marked-to market daily and the related
appreciation or depreciation of the contracts is presented in the
Statement of Assets and Liabilities.
At April 30, 1997, Health Sciences had outstanding forward foreign
currency contracts. Unrealized gain or loss on forward foreign currency
contracts is calculated daily as the difference between the contract
exchange rate and the closing forward rate applied to the face amount of
the contract.
Forward foreign currency contracts held by the Fund are fully
collateralized by other securities which are notated in the Statement of
Investment 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 forward foreign currency
contract.
G. EXPENSES - Each of the Portfolios bears expenses incurred specifically on
its behalf and, in addition, each Portfolio bears a portion of general
expenses, based on the relative net assets of each Portfolio.
Under an agreement between each Portfolio and the Fund's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by
the Custodian from any temporarily uninvested cash. Similarly, 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, 1997, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Transfer
Portfolio and Expenses Agent Fees
- --------------------------------------------------------------------------------
Energy Portfolio .............................. $ 15,881 $ 70,102
<PAGE>
Environmental Services Portfolio .............. (499) 5,123
Financial Services Portfolio .................. 22,234 151,230
Gold Portfolio ................................ 5,899 79,180
Health Sciences Portfolio ..................... 50,955 173,724
Leisure Portfolio ............................. 15,783 48,529
Technology Portfolio .......................... 42,939 208,824
Utilities Portfolio ........................... 7,843 42,907
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. IFG voluntarily agreed to
waive a portion of its fee which exceeds 0.45% on average net assets in excess
of $2 billion, 0.40% on average net assets in excess of $4 billion, and 0.35% on
average net assets in excess of $10 billion.
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 $20.00 per shareholder account, or, where
applicable, per participant in an omnibus account, per year.
IFG may pay such fee for participants in omnibus accounts to affiliates or
third parties. The fee is paid monthly at one-twelfth of the annual fee and is
based upon the actual number of accounts in existence during each month. IFG has
voluntarily agreed, in some instances, to absorb certain fees and expenses
incurred by Environmental Services and Utilities Portfolios.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended April 30, 1997, 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 ......................... $282,223,163 $331,590,358
Environmental Services Portfolio ......... 17,769,312 30,010,199
Financial Services Portfolio ............. 407,873,244 392,577,989
Gold Portfolio ........................... 216,322,914 229,252,109
Health Sciences Portfolio ................ 700,790,648 844,676,610
<PAGE>
Leisure Portfolio ...................... 19,065,289 87,326,636
Technology Portfolio ................... 885,136,585 901,555,162
Utilities Portfolio .................... 60,556,216 60,128,335
For the six months ended April 30, 1997, there were no purchases or sales of
U.S. Government securities.
NOTE 4 - APPRECIATION AND DEPRECIATION. At April 30, 1997, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation (depreciation) by Portfolio were
as follows:
Net
Gross Gross Appreciation
Portfolio Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
Energy Portfolio .............. $ 4,595,898 $ 8,331,443 $ (3,735,545)
Environmental Services
Portfolio .................. 2,076,173 2,418,463 (342,290)
Financial Services Portfolio .. 120,573,342 5,571,641 115,001,701
Gold Portfolio ................ 17,419,342 46,398,221 (28,978,879)
Health Sciences Portfolio ..... 130,055,710 28,130,115 101,925,595
Leisure Portfolio ............. 32,749,608 11,488,551 21,261,057
Technology Portfolio .......... 84,644,708 23,882,409 60,822,299
Utilities Portfolio ........... 8,843,299 7,151,627 1,691,672
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 deferred compensation 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 of 40% of the retainer fee at the time of retirement.
Pension expenses for the six months ended April 30, 1997, 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 ........................ $ 1,149 $ 4,444 $ 7,823
Environmental Services Portfolio ........ 307 1,439 2,791
<PAGE>
Financial Services Portfolio ............ 3,937 13,555 28,206
Gold Portfolio .......................... 2,352 14,960 27,732
Health Sciences Portfolio ............... 8,520 26,377 55,446
Leisure Portfolio ....................... 2,452 11,687 23,984
Technology Portfolio .................... 6,520 17,357 36,779
Utilities Portfolio ..................... 1,207 5,781 11,760
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, 1997, in which
the issuer was an affiliate of the Portfolio, is as follows:
<TABLE>
<CAPTION>
Purchases Sales Realized
--------------------- --------------------- Gain Value
Affiliate Shares Cost Shares Cost Investments at 4/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Gold Portfolio
Crown Resources .......................... -- -- -- -- -- $ 5,640,000
Francisco Gold ........................... 75,000 1,085,724 175,000 525,770 2,013,336 3,133,949
Goldbelt Resources ....................... -- -- -- -- -- 715,717
Guyanor Ressources SA
Class A ............................... 271,000 982,542 -- -- -- 3,023,328
Sonoma Resources ......................... -- -- -- -- -- 39,104
International Capri
Resources ............................. -- -- -- -- -- 352,133
Pacific Amber
Resources Ltd ......................... 300,000 1,079,707 -- -- -- 515,316
Pacific Rim Mining ....................... 924,900 3,371,132 -- -- -- 3,839,407
Health Sciences Portfolio
Advanced Health .......................... -- -- -- -- -- 10,667,039
Axogen Ltd Units ......................... 345,000 6,210,000 147,500 2,655,000 813,010 5,036,250
Cambridge Heart .......................... -- -- -- -- -- 5,861,500
Clarus Medical Systems
Series I, Pfd ......................... -- -- -- -- -- 533,320
Series II, Pfd ........................ -- -- -- -- -- 111,195
Warrants .............................. -- -- -- -- -- 0
Ecogen Technologies I .................... -- -- -- -- -- 1
Electroscope Inc ......................... -- -- -- -- -- 920,194
Emisphere Technologies 193,600 ........... 4,446,997 -- -- -- 10,057,200
Janus Biomedical
Series A, Conv Pfd .................... -- -- -- -- -- 1,000,000
Physicians Online
Series A, Pfd ......................... -- -- -- -- -- 3,219,629
ResMed Inc ............................... -- -- -- -- -- 7,787,500
Sparta Pharmaceuticals ................... -- -- -- -- -- 295,313
Unisyn Technologies
Series A Conv Pfd ..................... -- -- -- -- -- 359,501
Series B Pfd .......................... -- -- -- -- -- 250,500
Series C Pfd .......................... 349,376 436,720 -- -- -- 436,720
<PAGE>
Technology Portfolio
Cellular Technical
Services .............................. 200,000 2,150,000 -- -- -- 14,500,000
Future Communications .................... -- -- -- -- -- 1
</TABLE>
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to 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.
At April 30, 1997, there were no such borrowings.
Other Information
UNAUDITED
On January 31, 1997, a special meeting of the shareholders of the Fund was held
at which the eleven directors identified below were elected, the selection of
Price Waterhouse LLP as independent accountants (Proposal 1), the approval of a
new investment advisory agreement with INVESCO Funds Group, Inc. ("IFG")
(Proposal 2) and a new sub-advisory agreement between IFG and INVESCO Trust
Company (Proposal 3) were ratified. The following is a report of the votes cast:
Withheld/
Nominee/Proposal For Against Abstain Total
- --------------------------------------------------------------------------------
Energy Portfolio
Charles W. Brady ........... 12,273,891 0 306,339 12,580,230
Dan J. Hesser .............. 12,286,015 0 294,215 12,580,230
Fred A. Deering ............ 12,257,517 0 322,713 12,580,230
Victor L. Andrews .......... 12,274,013 0 306,217 12,580,230
Bob R. Baker ............... 12,263,071 0 317,159 12,580,230
Lawrence H. Budner ......... 12,268,131 0 312,099 12,580,230
Daniel D. Chabris .......... 12,268,520 0 311,710 12,580,230
A.D. Frazier, Jr ........... 12,285,648 0 294,582 12,580,230
Hubert L. Harris, Jr ....... 12,281,634 0 298,596 12,580,230
Kenneth T. King ............ 12,254,702 0 325,528 12,580,230
John W. McIntyre ........... 12,282,454 0 297,776 12,580,230
Proposal 1 ................. 12,080,905 121,422 377,902 12,580,229
Proposal 2 ................. 11,907,366 204,306 468,558 12,580,230
Proposal 3 ................. 11,886,312 220,852 473,066 12,580,230
<PAGE>
Environmental Services Portfolio
Charles W. Brady ........... 1,584,796 0 79,785 1,664,581
Dan J. Hesser .............. 1,587,932 0 76,649 1,664,581
Fred A. Deering ............ 1,566,464 0 98,117 1,664,581
Victor L. Andrews .......... 1,567,007 0 97,574 1,664,581
Bob R. Baker ............... 1,584,970 0 79,611 1,664,581
Lawrence H. Budner ......... 1,580,914 0 83,667 1,664,581
Daniel D. Chabris .......... 1,565,727 0 98,854 1,664,581
A.D. Frazier, Jr ........... 1,585,462 0 79,119 1,664,581
Hubert L. Harris, Jr ....... 1,586,765 0 77,816 1,664,581
Kenneth T. King ............ 1,561,987 0 102,594 1,664,581
John W. McIntyre ........... 1,568,629 0 95,952 1,664,581
Proposal 1 ................. 1,561,440 41,513 61,627 1,664,580
Proposal 2 ................. 1,530,025 61,351 73,204 1,664,580
Proposal 3 ................. 1,526,105 62,718 75,757 1,664,580
Financial Services Portfolio
Charles W. Brady ........... 17,616,608 0 613,867 18,230,475
Dan J. Hesser .............. 17,676,603 0 553,872 18,230,475
Fred A. Deering ............ 17,597,932 0 632,543 18,230,475
Victor L. Andrews .......... 17,598,498 0 631,977 18,230,475
Bob R. Baker ............... 17,602,257 0 628,218 18,230,475
Lawrence H. Budner ......... 17,603,535 0 626,940 18,230,475
Daniel D. Chabris .......... 17,629,046 0 601,429 18,230,475
A.D. Frazier, Jr ........... 17,675,139 0 555,336 18,230,475
Hubert L. Harris, Jr ....... 17,670,667 0 559,808 18,230,475
Kenneth T. King ............ 17,559,959 0 670,516 18,230,475
John W. McIntyre ........... 17,650,398 0 580,077 18,230,475
Proposal 1 ................. 17,326,538 255,005 648,931 18,230,474
Proposal 2 ................. 16,957,156 467,691 805,627 18,230,474
Proposal 3 ................. 16,921,446 483,427 825,600 18,230,473
Gold Portfolio
Charles W. Brady ........... 23,720,512 0 1,074,559 24,795,071
Dan J. Hesser .............. 23,803,148 0 991,923 24,795,071
Fred A. Deering ............ 23,709,842 0 1,085,229 24,795,071
Victor L. Andrews .......... 23,717,943 0 1,077,128 24,795,071
Bob R. Baker ............... 23,702,178 0 1,092,893 24,795,071
Lawrence H. Budner ......... 23,720,487 0 1,074,584 24,795,071
Daniel D. Chabris .......... 23,750,781 0 1,044,290 24,795,071
A.D. Frazier, Jr ........... 23,774,627 0 1,020,444 24,795,071
Hubert L. Harris, Jr ....... 23,799,776 0 995,295 24,795,071
Kenneth T. King ............ 23,658,441 0 1,136,630 24,795,071
<PAGE>
John W. McIntyre ....... 23,795,282 0 999,789 24,795,071
Proposal 1 ............. 23,418,727 548,578 827,765 24,795,070
Proposal 2 ............. 22,741,195 855,395 1,198,480 24,795,070
Proposal 3 ............. 22,711,503 865,829 1,217,738 24,795,070
Health Sciences Portfolio
Charles W. Brady ........... 10,133,606 0 451,973 10,585,579
Dan J. Hesser .............. 10,188,449 0 397,130 10,585,579
Fred A. Deering ............ 10,119,613 0 465,966 10,585,579
Victor L. Andrews .......... 10,126,377 0 459,202 10,585,579
Bob R. Baker ............... 10,131,175 0 454,404 10,585,579
Lawrence H. Budner ......... 10,125,085 0 460,494 10,585,579
Daniel D. Chabris .......... 10,164,603 0 420,976 10,585,579
A.D. Frazier, Jr ........... 10,188,741 0 396,838 10,585,579
Hubert L. Harris, Jr ....... 10,187,734 0 397,845 10,585,579
Kenneth T. King ............ 10,107,622 0 477,957 10,585,579
John W. McIntyre ........... 10,185,324 0 400,255 10,585,579
Proposal 1 ................. 9,982,604 195,489 407,485 10,585,578
Proposal 2 ................. 9,739,018 327,502 519,057 10,585,577
Proposal 3 ................. 9,714,505 348,564 522,509 10,585,578
Leisure Portfolio
Charles W. Brady ........... 6,349,450 0 368,531 6,717,981
Dan J. Hesser .............. 6,382,766 0 335,215 6,717,981
Fred A. Deering ............ 6,341,175 0 376,806 6,717,981
Victor L. Andrews .......... 6,346,087 0 371,894 6,717,981
Bob R. Baker ............... 6,344,911 0 373,070 6,717,981
Lawrence H. Budner ......... 6,346,534 0 371,447 6,717,981
Daniel D. Chabris .......... 6,362,203 0 355,778 6,717,981
A.D. Frazier, Jr ........... 6,380,544 0 337,437 6,717,981
Hubert L. Harris, Jr ....... 6,381,165 0 336,816 6,717,981
Kenneth T. King ............ 6,328,102 0 389,879 6,717,981
John W. McIntyre ........... 6,378,201 0 339,780 6,717,981
Proposal 1 ................. 6,284,568 121,500 311,912 6,717,980
Proposal 2 ................. 6,107,441 215,545 394,995 6,717,981
Proposal 3 ................. 6,098,262 235,718 384,000 6,717,980
Technology Portfolio
Charles W. Brady ........... 15,633,399 0 605,631 16,239,030
Dan J. Hesser .............. 15,695,780 0 543,250 16,239,030
Fred A. Deering ............ 15,608,096 0 630,934 16,239,030
Victor L. Andrews .......... 15,606,445 0 632,585 16,239,030
<PAGE>
Bob R. Baker ............... 15,620,804 0 618,226 16,239,030
Lawrence H. Budner ......... 15,623,882 0 615,148 16,239,030
Daniel D. Chabris .......... 15,653,925 0 585,105 16,239,030
A.D. Frazier, Jr ........... 15,685,989 0 553,041 16,239,030
Hubert L. Harris, Jr ....... 15,687,520 0 551,510 16,239,030
Kenneth T. King ............ 15,577,776 0 661,254 16,239,030
John W. McIntyre ........... 15,684,752 0 554,278 16,239,030
Proposal 1 ................. 15,386,378 260,800 591,852 16,239,030
Proposal 2 ................. 14,989,872 454,604 794,554 16,239,030
Proposal 3 ................. 14,968,393 495,031 775,606 16,239,030
Utilities Portfolio
Charles W. Brady ........... 8,749,167 0 345,685 9,094,852
Dan J. Hesser .............. 8,812,404 0 282,448 9,094,852
Fred A. Deering ............ 8,747,639 0 347,213 9,094,852
Victor L. Andrews .......... 8,758,042 0 336,810 9,094,852
Bob R. Baker ............... 8,747,165 0 347,687 9,094,852
Lawrence H. Budner ......... 8,754,585 0 340,267 9,094,852
Daniel D. Chabris .......... 8,780,763 0 314,089 9,094,852
A.D. Frazier, Jr ........... 8,802,005 0 292,847 9,094,852
Hubert L. Harris, Jr ....... 8,803,823 0 291,029 9,094,852
Kenneth T. King ............ 8,720,890 0 373,962 9,094,852
John W. McIntyre ........... 8,815,210 0 279,642 9,094,852
Proposal 1 ................. 8,673,809 119,372 301,670 9,094,851
Proposal 2 ................. 8,438,336 221,277 435,239 9,094,852
Proposal 3 ................. 8,419,921 243,286 431,645 9,094,852
<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
---------- -----------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
UNAUDITED
Energy Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 15.03 $ 10.09 $ 10.77 $ 11.53 $ 9.14 $ 11.28
---------------- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income ................. 0.03 0.04 0.09 0.06 0.13 0.05
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) ..... 0.06 4.94 (0.68) (0.76) 2.36 (2.17)
------------------------------------------------------------------------------------------
Total from Investment Operations ...... 0.09 4.98 (0.59) (0.70) 2.49 (2.12)
------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ . 0.00 0.04 0.09 0.06 0.10 0.02
Distributions from Capital Gains ...... 1.22 0.00 0.00 0.00 0.00 0.00
------------------------------------------------------------------------------------------
Total Distributions ................... 1.22 0.04 0.09 0.06 0.10 0.02
------------------------------------------------------------------------------------------
Net Asset Value - End of Period ....... 13.90 15.03 10.09 10.77 11.53 9.14
==========================================================================================
TOTAL RETURN .......................... 0.63%* 49.33% (5.45%) (6.04%) 27.18% (18.74%)
<PAGE>
RATIOS
Net Assets -End of Period ($000 Omitted) . 172,612 236,169 48,284 73,767 50,272 17,048
Ratio of Expenses to Average Net Assets 0.62%*@ 1.30%@ 1.53%@ 1.35% 1.18% 1.73%
Ratio of Net Investment Income to Average Net Assets 0.16%* 0.54% 0.72% 0.65% 0.86% 0.32%
Portfolio Turnover Rate ............... 136%* 392% 300% 123% 190% 370%
Average Commission Rate Paid^^ ........ 0.0660* 0.0794 -- -- -- --
</TABLE>
+ Distributions in excess of net investment income for the year ended October
31, 1996, 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.
^^ The average commission rate paid is the total brokerage commissions paid
on applicable purchases and sales of securities for the period divided by
the total number of related shares purchased or sold which is required
to be disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
-------------- ------------------------------------------------------------------------
1997 1996 1995 1994< 1993< 1992
UNAUDITED
Environmental Services Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 10.14 $ 8.12 $ 6.50 $ 6.80 $ 7.54 $ 8.97
--------------- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) .......... (0.01) 0.06 0.08 0.06 (0.02) (0.04)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) ..... (0.34) 2.02 1.62 (0.30) (0.72) (1.39)
--------------- ------------------------------------------------------------------------
Total from Investment Operations ...... (0.35) 2.08 1.70 (0.24) (0.74) (1.43)
--------------- ------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income .. 0.00 0.06 0.08 0.06 0.00 0.00
Distributions from Capital Gains ...... 0.54 0.00 0.00 0.00 0.00 0.00
--------------- ------------------------------------------------------------------------
Total Distributions ................... 0.54 0.06 0.08 0.06 0.00 0.00
--------------- ------------------------------------------------------------------------
Net Asset Value - End of Period ....... 9.25 10.14 8.12 6.50 6.80 7.54
=============== ========================================================================
<PAGE>
TOTAL RETURN .......................... (3.73%)* 25.58% 26.09% (3.51%) (9.85%) (15.90%)
RATIOS
Net Assets - End of Period
($000 Omitted) ..................... 19,196 26,794 22,756 29,276 40,589 17,685
Ratio of Expenses to
Average Net Assets# ................ 0.81%*@ 1.61%@ 1.57%@ 1.29% 1.62% 1.85%
Ratio of Net Investment Income (Loss)
to Average Net Assets# ............. (0.12%)* 0.47% 0.65% 0.61% (0.40%) (1.23%)
Portfolio Turnover Rate ............... 80%* 142% 195% 211% 155% 113%
Average Commission Rate Paid^^ ........ 0.0795* 0.1639 -- -- -- --
</TABLE>
< The per share information 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 Portfolio were voluntarily absorbed by IFG for
the six months ended April 30, 1997 and for the years ended October 31,
1996, 1995 and 1994. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.19% (not
annualized),1.85%, 1.93% and 1.43%, respectively, and ratio of net investment
income to average net assets would have been (0.50%) (not annualized),
0.23%, 0.29% and 0.47%, respectively.
@ Ratio is based on Total Expenses of the Portfolio, less Expenses Absorbed
by Investment Advisor, which is before any expense offset arrangements.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
---------------- ------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
UNAUDITED
Financial Services Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 22.94 $ 18.95 $ 15.31 $ 20.28 $ 15.28 $ 14.67
---------------- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income ................. 0.14 0.50 0.29 0.29 0.24 0.20
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) ..... 3.02 5.18 3.64 (0.66) 5.00 1.52
---------------- ------------------------------------------------------------------------
Total from Investment Operations ...... 3.16 5.68 3.93 (0.37) 5.24 1.72
---------------- ------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income .. 0.03 0.50 0.29 0.29 0.24 0.20
In Excess of Net Investment Income .... 0.00 0.05 0.00 0.00 0.00 0.00
Distributions from Capital Gains ...... 1.94 1.14 0.00 4.31 0.00 0.91
---------------- ------------------------------------------------------------------------
Total Distributions ................... 1.97 1.69 0.29 4.60 0.24 1.11
---------------- ------------------------------------------------------------------------
Net Asset Value - End of Period ....... 24.13 22.94 18.95 15.31 20.28 15.28
================ =========================================================================
<PAGE>
TOTAL RETURN .......................... 14.79%* 31.48% 25.80% (2.24%) 34.33% 11.74%
RATIOS
Net Assets - End of Period
($000 Omitted) ..................... 766,473 542,688 410,048 266,170 384,131 189,708
Ratio of Expenses to Average Net Assets 0.51%*@ 1.11%@ 1.26%@ 1.18% 1.03% 1.07%
Ratio of Net Investment Income
to Average Net Assets .............. 0.62%* 2.48% 2.10% 1.66% 1.16% 1.28%
Portfolio Turnover Rate ............... 61%* 141% 171% 88% 236% 208%
Average Commission Rate Paid^^ ........ 0.0647 0.0835 -- -- -- --
</TABLE>
* 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.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
------------- -------------------------------------------------------------------------
1997 1996 1995 1994 1993< 1992
UNAUDITED
Gold Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $ 8.00 $ 5.21 $ 5.68 $ 6.23 $ 3.99 $ 4.26
-------------- --------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) ......... (0.01) (0.01) 0.01 (0.02) (0.01) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) .... (1.25) 2.80 (0.47) (0.53) 2.25 (0.26)
-------------- --------------------------------------------------------------------------
Total from Investment Operations ..... (1.26) 2.79 (0.46) (0.55) 2.24 (0.27)
-------------- --------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income . 2.15 0.00 0.01 0.00 0.00 0.00
-------------- --------------------------------------------------------------------------
Net Asset Value - End of Period ...... 4.59 8.00 5.21 5.68 6.23 3.99
============== ==========================================================================
TOTAL RETURN ......................... (20.47%)* 53.55% (8.12%) (8.83%) 56.27% (6.51%)
RATIOS
Net Assets - End of Period
<PAGE>
($000 Omitted) .................... 203,870 277,892 151,779 271,163 292,940 46,212
Ratio of Expenses to Average Net Asset 0.71%*@ 1.22%@ 1.32%@ 1.07% 1.03% 1.41%
Ratio of Net Investment Income (Loss)
to Average Net Assets ............. (0.10%)* (0.08%) 0.13% (0.32%) (0.21%) (0.23%)
Portfolio Turnover Rate .............. 84%* 155% 72% 97% 142% 101%
Average Commission Rate Paid^^ ....... 0.0350* 0.0415 -- -- -- --
</TABLE>
< The per share information 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.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
Financial 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
------------- --------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
UNAUDITED
Health Sciences Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 55.24 $ 50.47 $ 35.09 $ 33.49 $ 35.65 $ 40.60
------------- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) .......... 0.05 0.07 (0.03) (0.24) (0.13) 0.11
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) ..... 2.40 8.78 15.41 1.84 (2.02) (4.52)
------------- --------------------------------------------------------------------------------
Total from Investment Operations ...... 2.45 8.85 15.38 1.60 (2.15) (4.41)
------------- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income .. 0.00 0.07 0.00 0.00 0.01 0.10
Distributions from Capital Gains+ ..... 8.59 4.01 0.00 0.00 0.00 0.44
------------- --------------------------------------------------------------------------------
Total Distributions ................... 8.59 4.08 0.00 0.00 0.01 0.54
------------- --------------------------------------------------------------------------------
Net Asset Value - End of Period ....... 49.10 55.24 50.47 35.09 33.49 35.65
============= ================================================================================
<PAGE>
TOTAL RETURN ..................... 4.89%* 17.99% 43.83% 4.78% (6.01%) (10.86%)
RATIOS
Net Assets - Emd of Period
($000 Omitted) ................ 868,958 933,828 860,926 473,926 560,294 756,791
Ratio of Expenses to Average Net Assets 0.54%*@ 0.98%@ 1.15%@ 1.19% 1.16% 1.00%
Ratio of Net Investment Income (Loss)
to Average Net Assets .............. 0.09%* 0.11% (0.08%) (0.57%) (0.34%) 0.26%
Portfolio Turnover Rate ............... 83%* 90% 107% 80% 87% 91%
Average Commission Rate Paid^^ ........ 0.0603 0.1204 -- -- -- --
</TABLE>
+ 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.
* Based on operations for the period shown and, accordingly, not representative
of a full year.
@ Ratio is based on Total Expenses of the Portfolio, which is before any expense
offset arrangements.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
----------- -----------------------------------------------------------------------------
1997 1996 1995 1994 1993< 1992
UNAUDITED
Leisure Portfolio
<S> <S> <S> <S> <S> <S> <S>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 22.89 $ 23.78 $ 22.63 $ 25.47 $ 16.29 $ 14.85
----------- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) .......... 0.00 0.04 0.08 (0.01) (0.02) (0.01)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) ..... 0.42 2.25 2.06 (0.94) 9.20 2.44
----------- -----------------------------------------------------------------------------
Total from Investment Operations ...... 0.42 2.29 2.14 (0.95) 9.18 2.43
----------- -----------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ . 0.00 0.04 0.08 0.00 0.00 0.00
Distributions from Capital Gains ...... 0.64 2.25 0.91 1.89 0.00 0.99
In Excess of Capital Gains ............ 0.00 0.89 0.00 0.00 0.00 0.00
----------- -----------------------------------------------------------------------------
Total Distributions ................... 0.64 3.18 0.99 1.89 0.00 0.99
----------- -----------------------------------------------------------------------------
Net Asset Value - End of Period ....... 22.67 22.89 23.78 22.63 25.47 16.29
=========== =============================================================================
<PAGE>
TOTAL RETURN .......................... 1.85%* 10.66% 9.98% (3.92%) 56.36% 16.34%
=========== ========
RATIOS
Net Assets - End of Period
($000 Omitted) ..................... 189,424 252,297 265,181 282,649 351,685 40,140
Ratio of Expenses to Average Net Assets 0.72%*@ 1.30%@ 1.29%@ 1.17% 1.14% 1.51%
Ratio of Net Investment Income (Loss)
to Average Net Assets .............. 0.03%* 0.18% 0.31% 0.00% (0.11%) (0.33%)
Portfolio Turnover Rate ............... 13%* 56% 119% 116% 116% 148%
Average Commission Rate Paid^^ ........ 0.0581 0.1503 -- -- -- --
</TABLE>
< The per share information was computed based on weighted average shares.
+ Distributions in excess of net investment income for the years ended
October 31, 1996 and 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.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
---------- -------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992<
UNAUDITED
Technology Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period . $ 34.23 $ 34.33 $ 24.94 $ 26.99 $ 20.20 $ 18.10
----------- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) .......... 0.09 0.07 (0.02) (0.02) (0.15) (0.09)
Net Gains on Securities
(Both Realized and Unrealized) ..... 0.65 5.76 10.20 1.19 6.94 2.19
----------- -------------------------------------------------------------------------------
Total from Investment Operations ...... 0.74 5.83 10.18 1.17 6.79 2.10
----------- -------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ . 0.00 0.07 0.00 0.00 0.00 0.00
Distributions from Capital Gains ...... 4.49 5.86 0.79 3.22 0.00 0.00
----------- -------------------------------------------------------------------------------
Total Distributions ................... 4.49 5.93 0.79 3.22 0.00 0.00
----------- -------------------------------------------------------------------------------
Net Asset Value - End of Period ....... 30.48 34.23 34.33 24.94 26.99 20.20
=========== ===============================================================================
<PAGE>
TOTAL RETURN .......................... 1.90%* 19.98% 42.19% 5.04% 33.63% 11.57%
RATIOS
Net Assets - End of Period
($000 Omitted) ..................... 869,367 789,611 563,109 327,260 248,803 165,083
Ratio of Expenses to Average Net Assets 0.54%*@ 1.08%@ 1.12%@ 1.17% 1.13% 1.12%
Ratio of Net Investment Income (Loss)
to Average Net Assets .............. 0.32%* 0.24% (0.06%) (0.55%) (0.69%) (0.45%)
Portfolio Turnover Rate ............... 141%* 168% 191% 145% 184% 169%
Average Commission Rate Paid^^ ........ 0.0610 0.1557 -- -- -- --
</TABLE>
< The per share information was computed based on weighted average shares.
+ Distributions in excess of net investment income for the year ended October
31, 1996, 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.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<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
----------- ------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
UNAUDITED
Utilities Portfolio
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period .. $ 12.04 $ 10.61 $ 9.76 $ 12.80 $ 10.10 $ 9.95
----------- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income .................. 0.16 0.37 0.44 0.33 0.29 0.27
Net Gains or Losses on Securities
(Both Realized and Unrealized) ...... (0.26) 1.43 0.84 (1.12) 2.71 0.92
----------- ------------------------------------------------------------------------------
Total from Investment Operations ....... (0.10) 1.80 1.28 (0.79) 3.00 1.19
----------- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ .. 0.16 0.37 0.43 0.25 0.30 0.26
Distributions from Capital Gains ....... 0.87 0.00 0.00 2.00 0.00 0.78
----------- ------------------------------------------------------------------------------
Total Distributions .................... 1.03 0.37 0.43 2.25 0.30 1.04
----------- ------------------------------------------------------------------------------
Net Asset Value - End of Period ........ 10.91 12.04 10.61 9.76 12.80 10.10
=========== ==============================================================================
<PAGE>
TOTAL RETURN ........................... (0.89%)* 17.18% 13.48% (7.22%) 29.88% 12.04%
RATIOS
Net Assets - End of Period
($000 Omitted) ...................... 140,462 153,082 134,468 139,579 181,738 107,561
Ratio of Expenses to Average Net Assets# 0.58%*@ 1.17%@ 1.18%@ 1.13% 1.06% 1.13%
Ratio of Net Investment Income to
Average Net Assets# ................. 1.42%* 3.28% 4.47% 3.33% 2.66% 2.73%
Portfolio Turnover Rate ................ 44%* 141% 185% 180% 202% 226%
Average Commission Rate Paid^^ ......... 0.0710* 0.0895 -- -- -- --
</TABLE>
+ Distributions in excess of net investment income for the year ended October
31, 1996, aggregated less than $0.01 on a per share basis.
# Various expenses of the Portfolio were voluntarily absorbed by IFG for the
six months ended April 30, 1997 and the years ended October 31, 1996,
1995, and 1994. If such expenses had not been voluntarily absorbed, ratio
of expenses to average net assets would have been 0.63%, 1.25%, 1.30% and
1.14%, respectively, and ratio of net investment income to average net
assets would have been 1.37%, 3.20%, 4.34% and 3.32%, respectively.
* 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, less Expenses Absorbed
by Investment Adviser, which is before any expense offset arrangements.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
FAMILY OF FUNDS
Fund Ticker Newspaper
Fund Name Code Symbol Abbreviation
- --------------------------------------------------------------------------------
International
International Growth ...................... 49 FSIGX IntlGr
Asian Growth .............................. 41 IVAGX AsianGr
European .................................. 56 FEURX Europ
European Small Company .................... 37 IVECX EuroSmCo
Latin American Growth ..................... 34 IVSLX LatinAmGr
Pacific Basin ............................. 54 FPBSX PcBas
- --------------------------------------------------------------------------------
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
Realty .................................... 42 IVSRX *
Technology ................................ 55 FTCHX Tech
Utilities ................................. 58 FSTUX Util
Worldwide Capital Goods ................... 38 ISWGX WldCap
Worldwide Communications .................. 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Capital Appreciation
Growth .................................... 10 FLRFX Grwth
Dynamics .................................. 20 FIDYX Dynm
Small Company ............................. 74 IDSCX DivSmCo
Emerging Growth ........................... 60 FIEGX Emgrth
- --------------------------------------------------------------------------------
Growth & Income
Industrial Income ......................... 15 FIIIX IndInc
Value Equity .............................. 46 FSEQX ValEq
Multi-Asset Allocation .................... 70 IMAAX MulAstAl
Balanced .................................. 71 IMABX Bal
Total Return .............................. 48 FSFLX TotRtn
- --------------------------------------------------------------------------------
<PAGE>
Bond
Short-Term Bond ........................... 33 INIBX ShTrBd
Intermediate Government Bond .............. 47 FIGBX IntGov
U.S. Government Securities ................ 32 FBDGX USGvt
Select Income ............................. 30 FBDSX SelInc
High Yield ................................ 31 FHYPX HiYld
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Intermediate Bond ................ 36 IVTIX *
Tax-Free Long-Term Bond ................... 35 FTIFX TxFre
- --------------------------------------------------------------------------------
Money Market
U.S. Government Money Fund ................ 44 FUGXX InvGvtMF
Cash Reserves ............................. 25 FDSXX InvCshR
Tax-Free Money Fund ....................... 40 FFRXX InvTaxFree
* 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>
EasiVest makes it easy to pay yourself first.
It seems that for most of us the hardest part of investing at regular
intervals comes down to imply writing the check, finding the stamp, and putting
it in the mail. But with INVESCO's EasiVest it's so easy that we'll do almost
all the work for you.
After you fill out the authorization and return it with a voided check, the
exact dollar amount you specify will be electronically transferred from your
bank account to your designated fund on the same day each month.
Using EasiVest is one of the few time when you'll find the easy way may also be
on of the best.
For years smart investors have used an investment strategy known as
dollar-cost averaging. It only makes sense that when prices are high an investor
will want to buy fewer shares, and when prices are low he will want to buy more.
By investing a fixed amount at regular intervals with INVESCO's EasiVest, you
can take advantage of these market fluctuations.
Over a sufficient period of time, dollar-cost averaging may make the average
price you pay per share less than the actual average price per share. So follow
the lead of successful investors and take advantage of dollar-cost averaging
with INVESCO's EasiVest.
Like other investment systems, periodic investment plans to not insure a
profit, nor do they protect against loss in a falling market. Since these plans
involve continuous investment in securities regardless of fluctuating price
levels in the market, you should consider your financial ability to continue
purchases through low price levels. Finally, be aware that you will incur a loss
under the plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
Just follow these simple authorization instructions and let INVESCO's
EasiVest help you build for your future.
1. Call your bank for their ABA and account numbers. Then complete the
EasiVest authorization and sign it the same way you would your personal
checks.
2. Enclose an unsigned, personal check or savings deposit slip marked
"Void."
3. Place a voided check or savings deposit slip and signed authorization
form in an envelope; then mail it to us.
<PAGE>
It's that easy to start building your mutual fund portfolio. And you can take
advantage of INVESCO's EasiVest with as little as $50 a month.
Questions? Call us at 1-800-525-8085.
Start building for your future today.
<PAGE>
EASIVEST AUTHORIZATION FOR AUTOMATIC INVESTMENTS
Before returning this Authorization, please be sure to contact your bank for
the correct ABA number and account number.
I authorize INVESCO Funds Group to transfer money from my checking or savings
account on or about the 7th or 21st (check one) day of each month for the
amounts and funds indicated below:
Fund___________________________________ Acct.#______________________________
$__________________________ ($50 minimum) ___ 7th ___21st
- ----------------------------------------------------------------------------
Bank Name
- ----------------------------------------------------------------------------
Bank Street Address
- ----------------------------------------------------------------------------
City, State, Zip
- ----------------------------------------------------------------------------
ABA Number (available from your bank) Bank Phone Number
____________________________ This is a __Checking Account __ Savings Account
Bank Account Number
- ----------------------------------------------------------------------------
Owner's Name (First, Middle Initial, Last)
- ----------------------------------------------------------------------------
Joint Owner's Name (First, Middle Initial, Last)
- ----------------------------------------------------------------------------
Owner Street Address
- ----------------------------------------------------------------------------
City, State, Zip
- ----------------------------------------------------------------------------
Signature Date
- ----------------------------------------------------------------------------
Signature Date
- ----------------------------------------------------------------------------
Daytime Telephone Number Evening Telephone Number
<PAGE>
Don't forget to attach a voided check or deposit slip.
This authority is to remain in effect until I revoke it in writing and, until
INVESCO receives such notification, I agree INVESCO will be fully protected in
honoring any such electronic debit. I further agree that if any such electronic
debit is not honored, whether with cause or without cause and whether
intentionally or unintentionally, INVESCO will not be liable whatsoever. This
authorization will become a part of the fund application subject to the terms,
representations and conditions thereof.
Like other investment systems, period investment plans do not insure a profit,
nor do they protect against loss in a falling market. Since these plans involve
continuous investment in securities regardless of fluctuating price levels in
the market, you should consider your financial ability to continue purchases
through low price levels. Finally, be aware that you will incur a loss under the
plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
<PAGE>
INVESCO FUNDS
INVESCO Funds Group, Inc.,(SM) Distributor
Post Office Box 173706
Denver, CO 80217-3706
1-800-525-8085
PAL(R): 1-800-424-8085
http://www.invesco.com
If you're in Denver, visit one of our convenient Investor Centers:
Denver Tech Center,
7800 East Union Avenue, Lobby Level;
Cherry Creek, 155-B Fillmore Street, Fillmore Plaza
This information must be preceded or accompanied by a current prospectus.
<PAGE>
