KNOWLEDGE DISCIPLINE SERVICE CHOICE
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YOU SHOULD KNOW WHAT INVESCO KNOWS(TM)
INVESCO Sector Funds, Inc.
ENERGY
FINANCIAL SERVICES
GOLD
HEALTH SCIENCES
LEISURE
TECHNOLOGY
UTILITIES
[INVESCO ICON]
INVESCO
SEMIANNUAL REPORT / April 30, 1999.
<PAGE>
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"THE BASIC PREMISE UPON WHICH INVESCO LEISURE FUND IS BASED--THAT AMERICANS ARE
DEVOTING AN INCREASING AMOUNT OF THEIR WEALTH TO THE LEISURE SECTOR--REWARDED
THE FUND HANDSOMELY OVER THE PAST SIX MONTHS." (PAGE 8)
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The line graphs illustrate the value of a $10,000 investment, plus
reinvested dividends and capital gain distributions, for the 10-year periods
ended 4/30/99. The charts and other total return figures cited reflect the
funds' operating expenses, but the index does not have expenses, which would, of
course, have lowered its performance. (Of course, past performance is not a
guarantee of future results.)(1),(2)
TOTAL RETURN
PERIODS ENDED 4/30/99(1)
6 months 1 year 5 years* 10 years* Page #
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ENERGY FUND 17.12% -9.10% 11.35% 5.70% 4
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FINANCIAL SERVICES FUND 22.93% 10.52% 26.62% 24.45% 5
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GOLD FUND 8.42% -22.56% -13.70% -4.77% 6
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HEALTH SCIENCES FUND 7.28% 15.12% 24.84% 21.77% 7
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LEISURE FUND 44.53% 37.35% 20.81% 19.88% 8
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TECHNOLOGY FUND--CLASS II 46.46% 32.96% 26.16% 24.55% 9
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UTILITIES FUND 19.03% 20.54% 17.42% 14.53% 10
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TECHNOLOGY FUND--CLASS I 21.68% cumulative return since inception (12/98) 9
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* Average Annualized
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Energy Fund 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 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Financial Services Fund 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 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Gold Fund 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 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Health Sciences Fund 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 4/30/99.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Leisure Fund 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 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Technology - Class II Fund 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 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Technology - Class I Fund to the value of
a $10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the period since inception (12/98) through 4/30/99.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Utilities Fund 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 4/30/99.
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"SEEING LARGER PATTERNS IN THE PRICE DROP, MANY FINANCIAL WRITERS HAVE TREATED
THE OIL AND NATURAL GAS INDUSTRIES AS PART OF THE "OLD ECONOMY"--SUGGESTING THAT
THEIR PRODUCTS ARE SOMEHOW OBSOLETE. THIS IS OBVIOULSY FAR FROM THE TRUTH."
(PAGE 4)
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INVESCO'S SECTOR FUNDS
ENERGY FUND
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Dear Shareholder:
The past six months has been a tempestuous period in the energy markets, but
patient investors have emerged from the storm with their crafts intact. Indeed,
we are optimistic that the recent performance of the fund indicates smoother
sailing ahead.
For the six months ended April 30, 1999, the value of your shares rose
17.21%. This lagged the return of the S&P 500 over the same period, which rose
22.31%. (Of course, past performance is not a guarantee of future results.)(1),
(2)
It is important to acknowledge the very real problems the oil markets have
had over the past year, but it is also crucial to recognize the extreme--and
perhaps excessive--reactions investors have had to these problems. An imbalance
in the world's oil supply developed last year as a result of the slowdown in the
Asian economies, in particular. Although the excess inventories were quite small
relative to total demand, oil prices plummeted as a result.
Seeing larger patterns in the price drop, many financial writers have
treated the oil and natural gas industries as part of the "old
economy"--suggesting that its products are somehow obsolete. This is obviously
far from the truth. Although we keep a careful eye out for competing new sources
of energy, it is quite apparent that none will be able to challenge fossil fuels
on an economic basis for some time to come. In the meantime, world growth
virtually assures that energy demand will continue to grow as well. The billions
of consumers in the developing world consume only a fraction of the energy
Americans do on a per capita basis. Should per capita consumption increase
overseas only slightly as those economies grow, the effect on world demand for
fossil fuels will be enormous.
It is indeed interesting to note how the oil industry itself has responded
to Wall Street's pessimism--by seeing a buying opportunity. The high-profile
mergers between large integrated oil producers suggest that these companies feel
the financial markets have undervalued energy assets. In fact, the markets have
shown signs of a very compelling turnaround in their appraisal of the industry
recently, sending both oil company stocks and energy prices dramatically higher.
We will continue to manage the fund guided by our faith in these long-term
trends, but we are especially encouraged by the current, apparently "oversold,"
conditions in the sector. Most stocks are still well off their highs, and
although we have experienced a partial recovery, the potential upside remains
substantial. Our strategy--one that encompasses a wide range of service,
exploration, equipment, production and refining firms--should allow us to
benefit as the oil and gas industries begin to sail with the wind behind them.
/s/ John S. Segner
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John S. Segner
Vice President
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INVESCO'S SECTOR FUNDS
FINANCIAL SERVICES FUND
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Dear Shareholder:
The last six months have been an active period in the financial services group.
With the threat of the Asian financial crisis seemingly ebbing, investors have
begun to turn their attention to the fundamentals of the sector. The results
have been impressive gains in the sector, and I am happy to report that our fund
has shared in the rebound.
For the six months ended April 30, 1999, the value of your shares rose
22.93%. This slightly outpaced the return of the S&P 500 over the same period,
which rose 22.31%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
Clearly, the strong performance of both the economy and the broader stock
market has helped the financial services sector. But our approach in managing
the fund is premised on a longer-term factor: our conviction that financial
services is a growth sector--meaning that it will grow faster than the economy
as a whole.
Three trends make us optimistic for the future:
o First, banks, insurers, brokers, and other companies dealing with the
investment and transfer of assets are ideally positioned to take advantage
of demographic trends. An aging American population is earning more and
saving more. As they begin to retire, they will draw on these assets
and begin to transfer them to their families, providing ample opportunities
for financial intermediaries.
o Second, the ongoing deregulation of the financial services industry, both
at home and abroad, is creating enormous opportunities for leading
companies. As deregulation accelerates corporations able to offer both
banking and insurance services, for example, will enjoy significant
economies as they integrate customer service and other operations.
Indeed, these possibilities are driving many of the well-publicized mergers
in the sector. The combination last year of the Travelers insurance
company and the Citigroup banking firm, although it still has some
regulatory hurdles to pass, may only be the first of many.
o Third, technology is creating new possibilities for companies willing
to invest in its use. Online banking is only the most visible of these uses,
but many other vistas have been opened by faster communications and data
processing.
From an investor's standpoint, it is especially encouraging that the sector
is currently fragmented. The strongest companies own only a small part of the
markets in which they operate; in other words, they have a great deal of room to
grow. Our job, of course, is to identify who the winners will be.
We will likely experience bumps along the way--as we did last summer.
Still, the opportunities appear substantial for those with an aggressive,
long-term focus.
/s/ Jeffrey G. Morris
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Jeffrey G. Morris
Vice President
<PAGE>
INVESCO'S SECTOR FUNDS
GOLD FUND
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Dear Shareholder:
While the past six months have hardly been remarkably positive for gold
investors, they have at least represented something of a recovery from the very
disappointing performance of the last few years. Indeed, they may be signaling
that the worst is over for the gold markets--and that gold will once again
command some of the attention it has merited for the past five thousand years.
During the six months ended April 30, 1999, your shares in INVESCO Gold Fund
rose 8.42%. This return substantially lagged that of the S&P 500, which rose
22.31% over the same period. (Of course, past performance is not a guarantee of
future results.)(1),(2)
To understand where gold prices might be heading, of course, it is
important to understand where they have been. The collapse of many Asian
economies last year sent the gold markets reeling, in part because Asian owners
of gold put their holdings on the market. Gold usually fares best in
inflationary periods, and the specter of deflation in Asia also sent gold prices
down. These problems came on top of a longer-term, secular trend downward for
the industry, characterized by investors placing less emphasis on gold as a
store of value and hedge against inflation.
In a curious way, however, last summer's panic may eventually help gold
investors. Part of the problem plaguing gold is that national governments have
been net sellers of bullion. While advanced industrialized countries show no
sign of reversing this trend, it is possible that the currency crisis last year
will convince some emerging nations to become buyers in order to provide a
backing to their currencies.
Also, production costs provide some floor to the price of gold. Roughly 50%
of the world's production comes at a price tag over $200 per ounce, and 20%
comes above $270 per ounce--not much below current bullion prices. Finally,
certain other short-term factors may also provide support to the markets in the
intermediate term. The minting of Millenium coins might create some demand, as
might those for the Olympic Games.
For patient gold investors, however, the best news might well be the prices
that the industry--as opposed to the market--is attaching to gold, a situation
quite similar to the oil industry. Many smaller gold companies have been snapped
up recently by larger firms perceiving a bargain in their assets. These
acquisitions have helped our fund, which owned many of these smaller gold
producers.
It is difficult to perceive how investors will approach gold any time in
the near future with the same reverence as they do Internet branding or software
savvy. Yet while investors should be aware of the hurdles gold has to overcome,
it may well regain some of the respect it held for so long.
/s/ John S. Segner
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John S. Segner
Vice President
<PAGE>
INVESCO'S SECTOR FUNDS
HEALTH SCIENCES FUND
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Dear Shareholder:
Our fund continued to gain over the past six months, but not at the remarkable
rate it has over the past few years. Having rushed into the health care sector
in 1998, investors have been more reluctant to do so recently. However, we
believe the fundamental drivers for the sector that first attracted attention
are still in place, and that they will reward patient investors.
For the six months ended April 30, 1999, your shares in INVESCO Health
Sciences Fund rose 7.28%. This return significantly lagged that of the S&P 500,
which rose 22.31% over the same period. (Of course, past performance is not a
guarantee of future results.)(1),(2)
Seeing little change in the sector's fundamentals, we have made few
alterations in the portfolio's strategy. In particular, we will remain focused
on large pharmaceutical companies. It is worth briefly reviewing the factors
that are making for healthy profits for these companies:
o New drugs typically drive earnings and revenue growth for pharmaceutical
companies.
o Only the largest firms are able to register, market and distribute
their products efficiently in a global marketplace.
o An aging world population is consuming an increasing level of
pharmaceutical therapies, many of which are used in treating chronic
conditions, providing a cost-effective alternative to direct care.
o An improved regulatory "pipeline" for new drugs is increasing the speed
at which companies can get products to market.
While investors may periodically reevaluate the prices they are willing to pay
for these companies--as has happened recently--we believe that a steady record
of earnings growth will eventually create the conditions for stock appreciation.
The development of prominent new drugs may serve as stimulus, and we are
particularly excited about the pending introduction of "Cox-2" inhibitors, which
promise to revolutionize the treatment of pain and inflammation.
Although large-capitalization pharmaceuticals remain the dominant theme of
the portfolio, we are always keeping an eye out for attractive opportunities
elsewhere in the sector. Currently, we are very interested in the medical
devices industry. Like pharmaceuticals, medical devices can provide long-term
care to patients at less cost than hospitalization. They are also used
increasingly by an aging population. Market-leading device makers such as
Guidant and Medtronic have shown an ability to leverage their research &
development capacities in much the same way as leading drug firms such as Merck
and Pfizer. Meanwhile, our emphasis on the long-term trends of technology,
demographics, and regulation is keeping our focus away from other segments, such
as biotechnology.
We are confident health care will retain its enviable status as a
sector that is both indispensable-- and growing.
/s/ John R. Schroer
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John R. Schroer
Senior Vice President
<PAGE>
INVESCO'S SECTOR FUNDS
LEISURE FUND
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Dear Shareholder:
The basic premise upon which INVESCO Leisure Fund is based--that Americans are
devoting an increasing amount of their wealth to the leisure sector--rewarded
the fund handsomely over the past six months. While we recognize that much of
this remarkable performance was due to a particular set of highly favorable
factors, we remain optimistic that additional opportunities may lie around the
corner.
Over the six months ending April 30, 1999, the value of your shares rose
44.53%. This nearly doubled the return of the S&P 500 over the same period,
which rose 22.31%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
Our fund benefited from the appreciation of several industries within the
leisure sector. Primary among them were cable companies. A great deal of money
has flowed into that industry recently as a result of the desire of large
telecommunications and technology companies to secure a role for themselves.
Cable, these outsiders have realized, provides not only a means of delivering
entertainment into the home, but also serves as a "broadband" channel for
Internet service, voice transmission, and other purposes. Because cable
operating companies have enjoyed such powerful appreciation, we are now focusing
on content providers and cable technology firms.
Of course, not all leisure companies have been so fortunate--a situation we
have also been able to exploit. Gaming and lodging companies saw their stocks
bid down dramatically last year. We began selectively adding to our positions
over the last several months, and the fund has enjoyed some appreciation as
companies such as Harrah's Entertainment rebounded. The hotel chain Marriott has
also helped the fund as it has benefited from a strong economy and high
occupancy rates, helping fund performance. We see no reason these companies
cannot continue to enjoy healthy profit increases.
We have also benefited from avoiding some of the lackluster stocks within
the sector. Believing that Disney was entering a period of slower growth, we
reduced our position some time ago, allowing us largely to avoid the company's
recent, well-publicized problems. While we believe Disney will remain a large,
well-run and profitable company, we will attempt to continue to avoid firms that
have only modest growth potential, in favor of those tapping into new and
growing markets. Luckily, there appear to be many examples of such areas,
including advertising and video games.
We would frankly be quite surprised to see the fund continue to enjoy the
remarkable returns it has over the past six months. Certainly, the sector will
suffer should economic growth slow and consumer spending wane. Yet we believe
the key determinant in the fund's long-term performance--the increasing role of
leisure spending in the economy--will continue to reward patient investors.
/s/ Mark Greenberg
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Mark Greenberg
Vice President
<PAGE>
INVESCO'S SECTOR FUNDS
TECHNOLOGY FUND
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Dear Shareholder:
The six-month period ended April 30, 1999 was a time characterized by strong
performance in technology stocks. Indeed, this sector led the market up from the
market lows of last October. While their leadership may appear to be faltering
currently, they continue to perform well.
INVESCO Technology Fund has participated in that strong performance. During
the six months ended April 30, 1999, your shares in INVESCO Technology
Fund--Class II rose 46.46%. This return more than doubled that of the S&P 500,
which rose 22.31% over the same period. (Of course, past performance is not a
guarantee of future results.)(1),(2)
As we announced last January, Daniel Leonard retired at the end of 1998,
and I assumed management of INVESCO Technology Fund. Because the fund was
well-managed, the changes I have initiated can mostly be described as
incremental. We harvested a number of successful long-term investments and
redeployed the proceeds into numerous attractive growth companies, many of which
are benefiting directly from the growth of the Internet. Additionally, we
expanded our exposure to semiconductor stocks and companies selling capital
equipment to semiconductor companies, as we believe the industry is in the early
stages of what could be a multi-year upturn.
One other change that should be noted: We have reduced the concentration of
the positions in the portfolio. During the period, the sector's volatility has
increased significantly. Investing in technology stocks always involves risk, of
course, but the recent period has been exceptional. In an effort to help
moderate the fund's price swings, we are reducing the "specific risk," the
volatility associated with any particular security, through broader
diversification. We expect to hold somewhere between 80 to 90 individual stocks,
with the top 10 holdings representing some 20 to 30% of the portfolio.
This volatility presents opportunities as well. The sharp price moves in
many technology stocks can present us with the chance to make tactical
investments in companies we believe have outstanding long-term prospects--to
pick up good growth stocks while they are "on sale," as it were.
The past six months have been extraordinary for technology investors. We
expect that future periods will be equally interesting, but probably less
dramatic, than the price moves we have seen coming off the market lows. The
tremendous changes in this sector, many driven by the rapid adoption of the
Internet, have created significant opportunities for creative, well-managed
companies. We hope to be able to describe some of their successes in future
reports to you.
/s/ William R. Keithler
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William R. Keithler
Senior Vice President
<PAGE>
INVESCO'S SECTOR FUNDS
UTILITIES FUND
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Dear Shareholder:
Over the past six months, the remarkably uneven performance of the stock market
has resulted in uneven returns for utilities investors. Generally, electrical
utilities have had a difficult time, as have natural gas suppliers. Fortunately,
however, we have been able to find rewarding opportunities in the
telecommunications group--and we remain much more enthusiastic about this
segment moving forward.
For the six months ended April 30, 1999, your shares in INVESCO Utilities
Fund rose 19.03%. This compares with the S&P 500, which rose 22.31% over the
same period. (Of course, past performance is not a guarantee of future
results.)(1),(2)
As every utilities investor knows, this sector has changed dramatically
over the past two decades. While some utilities can still offer attractive
dividends to their shareholders, the days of safe, predictable growth are
largely over. Deregulation and the heightened competition that ensued have
forever changed the dynamics of the industry.
In many ways, these changes have been good for shareholders. The
deregulation of telecommunications companies, guided by the federal government,
has opened up huge frontiers for savvy competitors. Many telecommunications
companies in which we have invested have developed new technologies to broaden
demand for their services. The most visible manifestation of this change has
been movement of telecommunications firms into wireless communication and data
transmission over the Internet.
Since I also manage INVESCO Worldwide Communications Fund, I constantly
monitor developments across the telecommunications sector. For
telecommunications stocks in Utilities Fund, I generally choose companies that
are mature, established carriers--or, as in the case of MCI WorldCom, those with
a dominant competitive position.
Changes in the utilities sector have had a much more ambivalent effect on
electric utilities. In part, this is because deregulation has been conducted on
a state-by-state, piecemeal basis. From an investor's standpoint, the process
has been much less visible, meaning that the ways in which it has altered the
competitive terrain have been much more difficult to determine. In response, we
have diminished our focus on electrical utilities. We have also sought to find
the most dynamic companies within the group, such as those that are exploiting
the fiber networks originally constructed as part of their power grid.
Natural gas also forms a smaller part of our portfolio, but it is one that
may well exhibit more growth potential in the months to come. Natural gas is a
popular form of energy, because of its benign effect on the environment, but the
supply coming from new wells has not kept pace with demand. Warm winters
recently have kept prices from increasing, but a slight change next year could
bring far different results.
We will continue to adjust our asset allocation among these segments based
on our perceptions of the opportunity they present to provide capital growth
with less risk than the broader market.
/s/ Brian B. Hayward
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Brian B. Hayward
Vice President
<PAGE>
ENERGY
The fund is managed by Vice President John S. Segner. He received a BS from the
University of Alabama and an MBA from the University of Texas at Austin. Before
joining INVESCO in 1997, John served as Managing Director and Principal for The
Mitchell Group.
FINANCIAL SERVICES
The fund is managed by Vice President Jeffrey G. Morris. He received a BS from
Colorado State University and an MS from the University oF Colorado - Denver.
He is a Chartered Financial Analyst.
GOLD
The fund is managed by Vice President John S. Segner. He received a BS from the
University of Alabama and an MBA from the University of Texas at Austin. Before
joining INVESCO in 1997, John served as Managing Director and Principal for The
Mitchell Group.
HEALTH SCIENCES
The fund is managed by Senior Vice President John R. Schroer,
a Chartered Financial Analyst. John started his investment career in 1989, after
earning an MBA and BA from the University of Wisconsin.
LEISURE
The fund is managed by Vice President Mark Greenberg. Mark started his
investment career in 1980 and has over 16 years of experience in the leisure
sector. He has a BSBA from Marquette University and is a Chartered Financial
Analyst.
TECHNOLOGY
The fund is managed by Senior Vice President William R. Keithler, who returned
to INVESCO in 1998 after serving as vice president and portfolio manager with
Berger Associates. Bill has a MS from the University of Wisconsin-Madison and a
BS from Webster College. He is a Chartered Financial Analyst.
UTILITIES
The fund is managed by Vice President Brian B. Hayward. Previously, he was a
senior equity analyst for Mississippi Valley Advisors. Brian has a BA in
Mathematics and a MA in economics from the University of Missouri. He is a
Chartered Financial Analyst.
<PAGE>
MARKET HEADLINES
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MARKET HEADLINES:
NOVEMBER 1998-APRIL 1999
If the winter of 1997-1998 taught investors one lesson, it was never to
count a good economy down. Low interest rates, strong consumer spending and wage
growth, and a virtually non-existent inflation rate combined to guide the U.S.
markets out of the storms of world financial crisis. To be sure, troublesome
indicators remained: a ballooning trade deficit, sluggish earnings growth for
many large international companies, and a worrisomely low personal savings rate.
Overall, though, the American economy was as robust as it had been in decades.
Economists and market watchers struggled with the happy task of explaining
the continuing strength of the economy's fundamentals. Clearly, interest rate
cuts by an accommodating Federal Reserve Board helped. But many wondered if
deeper forces were at work. Some pointed to the "wealth effect" on consumer
spending caused by healthy portfolio gains from the bull market. Others
speculated that new productive vistas opened by technologies such as the
Internet may be playing a role in helping companies pay higher wages while
keeping costs down. Were we reaping the bounty of a "new economy," optimists
wondered?
If we were, the rest of the world appeared trapped in more somber economic
realities. Growth in Western Europe began to slow early in the year as its
companies suffered from declining exports to emerging markets. Japan and the
rest of Asia began crawling out of the hole of financial despair--but while
Asian markets reacted exuberantly, it was clear that the region had far to go.
In Latin America, markets plunged following a new currency crisis in Brazil
before recovering in February.
The world economy could not continue flying on one engine, American
financial officials warned their global counterparts. Indeed, the question
remained: Would the world join in American prosperity, or would the world's
largest economy finally fall prey to slower growth? As new market records were
achieved in April, however, more investors seemed to look forward to smooth
flying.
SINCE THE FUNDS ARE ACTIVELY MANAGED, HOLDINGS WILL CHANGE OVER TIME.
1)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.
2)THE S&P 500 IS AN UNMANAGED INDEX OF COMMON STOCKS CONSIDERED
REPRESENTATIVE OF THE BROAD U.S. STOCK MARKET.
<PAGE>
FIVE LARGEST COMMON STOCK HOLDINGS
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
DESCRIPTION VALUE
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ENERGY FUND
USX-Marathon Group $ 14,062,500
Consolidated Natural Gas 11,900,000
Apache Corp 9,052,812
Yacimientos Petroliferos Fiscades SA Sponsored ADR
Representing Class D Shrs 8,820,000
Baker Hughes 8,365,000
FINANCIAL SERVICES FUND
American International Group $110,666,993
Providian Financial 101,656,078
Citigroup Inc 66,671,500
American Express 61,148,681
Wells Fargo & Co 57,331,406
GOLD FUND
Euro-Nevada Mining $ 9,422,852
Barrick Gold 9,317,875
Franco-Nevada Mining Ltd 8,520,222
Stillwater Mining 8,493,750
Getchell Gold 8,190,000
HEALTH SCIENCES FUND
Medtronic Inc $154,593,184
Johnson & Johnson 94,335,637
Pfizer Inc 93,985,927
Merck & Co 92,027,500
Warner-Lambert Co 85,450,089
LEISURE FUND
AT&T Corp -- Liberty Media Group Class A Shrs $ 27,762,694
MediaOne Group 17,609,344
Harrah's Entertainment 15,056,800
Omnicom Group 14,935,000
WPP Group PLC 12,596,215
TECHNOLOGY FUND
Microsoft Corp $ 49,218,456
Cisco Systems 47,666,719
Nokia Corp Sponsored ADR Representing Ord Shrs 44,512,500
America Online 41,054,900
Sun Microsystems 37,962,994
<PAGE>
FIVE LARGEST COMMON STOCK HOLDINGS (CONTINUED)
UTILITIES FUND
MetroNet Communications Class B Non-Voting Shrs $ 10,933,500
Ameritech Corp 9,033,750
Qwest Communications International 8,458,398
SBC Communications 8,120,000
Sprint Corp 7,794,750
Composition of holdings is subject to change.
STATEMENT OF INVESTMENT SECURITIES
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
IF NON US AMOUNT VALUE
% DESCRIPTION
ENERGY FUND
90.35 COMMON STOCKS
14.52 NATURAL GAS
Coastal Corp 190,000 $ 7,267,500
Consolidated Natural Gas 200,000 11,900,000
ONEOK Inc 100,000 2,793,750
Sonat Inc 120,500 4,307,875
Williams Cos 130,000 6,142,500
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32,411,625
64.92 OIL & GAS
13.87 DOMESTIC INTEGRATED
Amerada Hess 70,000 3,990,000
Murphy Oil 130,000 6,101,875
Pennzoil-Quaker State 250,000 3,234,375
USX-Marathon Group 450,000 14,062,500
Unocal Corp 86,000 3,574,375
===============================================================================
30,963,125
10.43 DRILLING & EQUIPMENT
Atwood Oceanics(a) 110,000 3,836,250
Dril-Quip Inc(a) 118,300 2,883,562
Grey Wolf(a) 172,300 409,212
Nabors Industries(a) 245,000 5,037,813
Noble Drilling(a) 310,000 6,083,750
Transocean Offshore 170,000 5,046,875
===============================================================================
23,297,462
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
IF NON US AMOUNT VALUE
% DESCRIPTION
23.18 EXPLORATION & PRODUCTION
Apache Corp 295,000 $ 9,052,812
Barrett Resources(a) 91,000 2,764,125
Basin Exploration(a) 287,100 4,916,587
Cabot Oil & Gas Class A Shrs 136,200 2,383,500
Chieftain International(a) 52,500 948,281
Devon Energy 92,000 3,059,000
Gulf Indonesia Resources Ltd(a) 180,000 1,856,250
Kerr-McGee Corp 151,000 6,398,625
Ocean Energy(a) 455,000 4,237,188
Santa Fe Energy Resources(a) 329,500 2,965,500
Talisman Energy(a) 285,000 7,570,313
Union Pacific Resources Group 400,000 5,600,000
===============================================================================
51,752,181
16.09 INTERNATIONAL INTEGRATED
ENI SpA Sponsored ADR Representing
10 Ord Shrs 75,000 4,903,125
Mobil Corp 75,000 7,856,250
Shell Transport & Trading PLC ADR
Representing 6 Ord Shrs 100,000 4,543,750
Texaco Inc 91,300 5,729,075
Total SA Sponsored ADR Representing
1/2 Class B Shr 60,000 4,080,000
Yacimientos Petroliferos Fiscades
SA Sponsored ADR Representing
Class D Shrs 210,000 8,820,000
===============================================================================
35,932,200
1.35 REFINING & MARKETING
Valero Energy 135,000 3,012,188
===============================================================================
TOTAL OIL & GAS 144,957,156
===============================================================================
10.91 OIL WELL EQUIPMENT & SERVICES
Baker Hughes 280,000 8,365,000
Halliburton Co 60,000 2,557,500
Schlumberger Ltd 126,000 8,048,250
Veritas DGC(a) 265,900 5,384,475
===============================================================================
24,355,225
TOTAL COMMON STOCKS (Cost $169,574,334) 201,724,006
===============================================================================
9.65 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
Repurchase Agreement with
State Street dated 4/30/1999
due 5/3/1999 at 4.820%,
repurchased at $21,545,651
(Collateralized by US Treasury Bonds,
due 8/15/2013 at 12.000%,
value $21,930,949)
(Cost $21,537,000) $ 21,537,000 21,537,000
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $191,111,334)
(Cost for Income Tax Purposes $193,619,101) $ 223,261,006
==============================================================================
FINANCIAL SERVICES FUND
96.46 COMMON STOCKS
32.11 BANKS
AmSouth Bancorp 200,000 $ 9,512,500
Banco Santander Central
Hispano Registered Shrs SP 780,000 16,966,934
Bank of New York 1,300,000 52,000,000
City National 121,100 4,677,488
Fifth Third Bancorp 525,000 37,635,938
First Tennessee National 700,000 30,187,500
First Union 421,500 23,340,563
Firstar Corp 1,125,000 33,820,313
Huntington Bancshares 414,000 14,671,125
National Commerce Bancorp 50,000 1,250,000
National Westminster
Bank PLC UK 800,000 19,282,558
North Fork Bancorp 965,000 21,712,500
Northern Trust 257,000 23,933,125
SouthTrust Corp 52,500 2,091,798
State Street 515,000 45,062,500
Toronto-Dominion Bank CA 1,000,000 53,437,500
Wachovia Corp 401,000 35,237,875
Wells Fargo 1,327,500 57,331,406
===============================================================================
482,151,623
7.09 CONSUMER FINANCE
American Express 467,900 61,148,681
Household International 900,000 45,281,250
===============================================================================
106,429,931
23.57 FINANCIAL
Associates First Capital
Class A Shrs 1,008,800 44,702,450
Capital One Financial 158,000 27,442,625
Citigroup Inc 886,000 66,671,500
Fannie Mae 205,000 14,542,187
Financial Federal(a) 20,000 417,500
Freddie Mac 863,000 54,153,250
Heller Financial 40,000 1,085,000
MicroFinancial Inc 60,000 1,068,750
Newcourt Credit Group CA 1,490,000 42,092,500
Providian Financial 787,650 101,656,078
===============================================================================
353,831,840
19.19 INSURANCE
AON Corp 324,000 22,194,000
AXA FR 139,000 17,970,976
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
AEGON NV NL 76,000 $ 7,297,026
American International
Group 942,348 110,666,993
Everest Reinsurance
Holdings 217,700 6,599,031
Hartford Life Class
A Shrs 305,700 15,991,931
ING Groep NV NL 231,400 14,273,076
ING Groep NV Sponsored
ADR Representing
Ord Shrs NL 123,467 7,577,787
Nationwide Financial
Services Class A Shrs 130,000 6,028,750
Progressive Corp 234,600 33,665,100
Provident Cos 100,000 3,937,500
UNUM Corp 769,000 42,006,625
===============================================================================
288,208,795
2.73 INSURANCE BROKERS
Marsh & McLennan 535,000 40,960,938
===============================================================================
5.69 INVESTMENT BANK/BROKER FIRM
Merrill Lynch & Co 385,000 32,315,938
Morgan Stanley Dean Witter & Co 325,600 32,295,450
Schwab (Charles) Corp 171,000 18,767,250
Waddell & Reed Financial
Class A Shrs 89,539 2,020,224
===============================================================================
85,398,862
1.69 RAILROADS
Kansas City Southern Industries 425,000 25,314,062
===============================================================================
0.17 RETAIL
Cash America International 200,000 2,550,000
===============================================================================
4.22 SAVINGS & LOAN
Charter One Financial 765,345 23,917,031
Deutsche Pfandbriefbank AG GM 30,000 2,507,460
Washington Mutual 899,900 37,008,388
===============================================================================
63,432,879
TOTAL COMMON STOCKS (Cost $1,023,430,495) 1,448,278,930
===============================================================================
3.54 SHORT-TERM INVESTMENTS
2.63 COMMERCIAL PAPER
0.86 CONSUMER FINANCE
American Express Credit,
4.880%, 5/5/1999 $13,000,000 13,000,000
===============================================================================
1.77 FINANCIAL
American General Finance,
4.920%, 5/3/1999 $26,605,000 26,605,000
===============================================================================
TOTAL COMMERCIAL PAPER (Cost $39,605,000) 39,605,000
===============================================================================
0.91 REPURCHASE AGREEMENTS
Repurchase Agreement with
State Street dated 4/30/1999
due 5/3/1999 at 4.820%,
repurchased at $13,610,465
(Collateralized by US Treasury
Bonds, due 8/15/2021 at 8.125%,
value $13,780,616)
(Cost $13,605,000) $ 13,605,000 13,605,000
===============================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $53,210,000) 53,210,000
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,076,640,495)
(Cost for Income Tax Purposes
$1,077,740,522) $ 1,501,488,930
===============================================================================
GOLD FUND
85.14 COMMON STOCKS
85.14 GOLD & PRECIOUS METALS MINING
Aber Resources Ltd(a) CA 300,000 $ 1,968,750
Apex Silver Mines Ltd(a) CJ 250,000 3,156,250
Ashanti Goldfields Ltd
Sponsored GDR
Representing Ord Shrs GH 350,000 3,150,000
Barrick Gold CA 463,000 9,317,875
Claude Resources(a) CA 346,700 416,621
Crown Resources(a)(b) 985,000 1,046,563
Euro-Nevada Mining CA 550,000 9,422,852
Francisco Gold(a) CA 296,700 2,546,694
Franco-Nevada Mining Ltd CA 440,000 8,520,222
Freeport McMoRan Copper
& Gold Class A Shrs 336,000 4,893,000
Geomaque Explorations Ltd(a) CA 1,500,000 1,493,511
Getchell Gold(a) 240,000 8,190,000
Glamis Gold Ltd(a) CA 175,000 350,000
Goldcorp Inc Class A Shrs(a) CA 675,100 4,008,406
Golden Star Resources Ltd(a) 1,000,000 812,500
Guyanor Ressources SA
Class B Shrs(a)(b) FR 1,000,000 515,004
Homestake Mining 459,163 4,390,742
IAMGOLD(a) CA 1,700,000 4,552,633
Indochina Goldfields
Ltd(a)(c) CA 1,796,000 1,516,913
Lihir Gold Ltd Sponsored
ADR Representing
20 Ord Shrs(a) AS 215,000 3,843,125
Manhattan Minerals(a) CA 400,000 961,340
Meridian Gold(a) CA 1,200,000 6,900,000
Metallica Resources(a) CA 500,000 305,000
Nevsun Resources Ltd(a) CA 800,000 417,496
Newmont Mining 240,000 5,775,000
Pacific Rim Mining(a)(b) CA 924,900 1,047,919
Placer Dome CA 200,000 2,825,000
Repadre Capital(a) CA 500,000 892,673
Rio Narcea Gold Mines Ltd(a) CA 556,900 286,806
Solitario Resources(a) CA 191,000 209,847
SouthernEra Resources Ltd(a) CA 500,000 1,630,845
Star Resources(a)(b) CA 3,370,000 532,239
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
Stillwater Mining(a) 300,000 $ 8,493,750
Viceroy Resources(a) CA 2,000,000 2,266,017
===============================================================================
TOTAL COMMON STOCKS (Cost $136,428,247) 106,655,593
===============================================================================
14.86 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
Repurchase Agreement with
State Street dated
4/30/1999 due 5/3/1999
at 4.820%, repurchased
at $18,627,479
(Collaterized by US
Treasury Bonds, due
8/15/2013 at 12.000%,
value $18,959,516)
(Cost $18,620,000) $ 18,620,000 18,620,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $155,048,247)
(Cost for Income Tax Purposes $157,510,912) $ 125,275,593
===============================================================================
HEALTH SCIENCES FUND
98.59 COMMON STOCKS & WARRANTS
6.45 BIOTECHNOLOGY
Amgen Inc(a) 782,110 $ 48,050,883
Ecogen Technologies I(a)(b)(e) 100 1
Genentech Inc(a) 93,645 7,924,708
Gilead Sciences(a) 267,500 12,321,719
MedClone Trust(a)(d)(e) 144,405 0
MedImmune Inc(a) 364,050 20,068,257
NeXstar Pharmaceuticals(a) 583,880 10,108,423
Titan Pharmaceuticals(a) 488,215 1,556,185
Xenometrix Inc(a)(e) 127,641 22,975
===============================================================================
100,053,151
67.32 HEALTH CARE DRUGS -- PHARMACEUTICALS
Abbott Laboratories 1,430,430 69,286,453
Allergan Inc 336,805 30,270,349
American Home Products 1,377,975 84,056,475
Bristol-Myers Squibb 1,332,830 84,718,007
Glaxo Wellcome PLC Sponsored ADR
Representing 2 Ord Shrs 1,051,970 61,277,253
Johnson & Johnson 967,545 94,335,637
Lilly (Eli) & Co 969,165 71,354,773
Merck & Co 1,310,000 92,027,500
Novartis AG Registered Shrs 17,230 25,270,667
Pfizer Inc 816,825 93,985,927
Pharmacia & Upjohn 1,507,545 84,422,520
Roche Holdings AG Non-Voting
Shrs(a) 2,485 29,281,379
Schering-Plough Corp 1,481,555 71,577,626
Shire Pharmaceuticals Group PLC(a) 245,750 1,800,353
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
SmithKline Beecham PLC
Sponsored ADR
Representing 5 Ord Shrs 994,625 $ 65,334,430
Warner-Lambert Co 1,257,775 85,450,089
===============================================================================
1,044,449,438
0.55 HEALTH CARE -- SERVICES
Total Renal Care Holdings(a) 613,700 8,515,088
===============================================================================
24.27 MEDICAL EQUIPMENT & DEVICES
Bausch & Lomb 354,325 26,574,375
Baxter International 468,745 29,530,935
Biomet Inc 451,800 18,523,800
Boston Scientific(a) 1,304,870 55,538,529
Cambridge Heart(a) 150,262 1,164,530
Clarus Medical Systems Warrants
(Exp 2000)(a)(d)(e) 2,224 0
Guidant Corp 1,590,800 85,406,075
Medtronic Inc 2,148,993 154,593,184
Novoste Corp(a) 232,500 5,173,125
===============================================================================
376,504,553
TOTAL COMMON STOCKS & WARRANTS
(Cost $1,203,566,265) 1,529,522,230
===============================================================================
0.26 PREFERRED STOCKS
0.09 BIOTECHNOLOGY
Ingenex Inc, Series B, Pfd(a)(e) 103,055 62,864
MedClone Trust, Series G,
Conv Pfd(a)(e) 581,396 75,581
Osiris Therapeutics, Series
C, Pfd(a)(e) 382,353 1,300,000
===============================================================================
1,438,445
0.13 HEALTH CARE -- SERVICES
Physicians Online, Series A,
Conv Pfd(a)(b)(e) 361,350 1,954,904
===============================================================================
0.04 MEDICAL EQUIPMENT & DEVICES
Clarus Medical Systems
Series I, Pfd(a)(e) 106,664 533,320
Series II, Pfd(a)(e) 22,239 111,196
Janus Biomedical, Series
A, Conv Pfd(a)(b)(e) 400,000 1
===============================================================================
644,517
TOTAL PREFERRED STOCKS (Cost $6,974,797) 4,037,866
===============================================================================
0.02 FIXED INCOME SECURITIES
0.02 HEALTH CARE -- SERVICES
Physicians Online, Bridge Notes
11.000%, 10/31/2000(a)(b)(e)
(Cost $292,070) $ 292,070 292,070
===============================================================================
1.13 SHORT-TERM INVESTMENTS -- COMMERCIAL PAPER
1.13 INSURANCE
American General, 4.922%,
5/3/1999 (Cost $17,600,000) $ 17,600,000 17,600,000
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,228,433,132)
(Cost for Income Tax Purposes
$1,231,918,565) $ 1,551,452,166
===============================================================================
LEISURE FUND
91.49 COMMON STOCKS
2.91 BEVERAGES
Heineken NV NL 211,700 $ 10,638,984
===============================================================================
16.79 BROADCASTING
@Entertainment Inc(a) 158,800 1,429,200
AT&T Corp-- Liberty Media
Group Class A Shrs(a) 434,641 27,762,694
Belo (A H) Corp Class A Shrs 135,400 2,928,025
CBS Corp(a) 98,000 4,465,125
Central European Media
Enterprises Ltd Class A Shrs(a)BD 82,800 677,925
Chancellor Media(a) 112,200 6,156,975
Clear Channel Communications(a) 36,400 2,529,800
EchoStar Communications
Class A Shrs(a) 87,300 8,757,281
Fox Entertainment Group
Class A Shrs(a) 57,500 1,473,437
Infinity Broadcasting
Class A Shrs(a) 115,700 3,203,444
Sinclair Broadcast Group
Class A Shrs(a) 51,000 714,000
Television Broadcasts
Ltd Sponsored ADR
Representing 2 Ord Shrs HK 154,500 1,255,900
===============================================================================
61,353,806
16.09 CABLE
Adelphia Communications
Class A Shrs(a) 15,000 1,023,750
Cablevision Systems
Class A Shrs(a) 47,500 3,675,312
Comcast Corp Special
Class A Shrs 137,978 9,063,430
Flextech PLC(a) UK 266,100 3,840,090
Jones Intercable
Class A Shrs(a) 148,000 6,863,500
MediaOne Group(a) 215,900 17,609,344
NTL Inc(a) 95,995 7,319,619
TV Guide Class A Shrs(a) 189,300 7,974,263
USA Networks(a) 38,300 1,431,463
===============================================================================
58,800,771
0.62 COMPUTER RELATED
Bell & Howell(a) 22,100 738,969
Electronic Arts(a) 19,700 1,001,006
WorldGate Communications(a) 19,100 544,350
===============================================================================
2,284,325
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
1.18 CONSUMER -- JEWELRY, NOVELTIES & GIFTS
De Beers Consolidated Mines
Deferred ADR
Representing Ord Shrs SF 145,100 $ 3,554,950
TAG Heuer International
SA Sponsored ADR
Representing 1/10th
Ord Shr SZ 75,000 750,000
===============================================================================
4,304,950
8.41 ENTERTAINMENT
Ascent Entertainment
Group(a) 38,900 413,312
Disney (Walt) Co 84,399 2,679,668
Granada Group PLC UK 115,229 2,463,841
Loews Cineplex
Entertainment(a) CA 148,600 1,876,075
Metromedia International
Group(a) 100,000 587,500
SFX Entertainment
Class A Shrs(a) 31,200 1,926,600
Seagram Co Ltd CA 59,900 3,436,763
Time Warner 166,400 11,648,000
Viacom Inc
Class A Shrs(a) 82,080 3,329,370
Class B Shrs(a) 57,604 2,354,564
===============================================================================
30,715,693
6.41 GAMING
Harrah's Entertainment(a) 684,400 15,056,800
MGM Grand(a) 39,299 1,729,156
Mirage Resorts(a) 48,200 1,081,488
Park Place Entertainment(a) 227,300 2,457,681
Powerhouse Technologies(a) 68,000 1,190,000
Sun International Hotels
Ltd(a) BD 44,700 1,891,369
===============================================================================
23,406,494
0.29 HOUSEHOLD FURNITURE & APPLIANCES
Harman International Industries 22,770 1,045,997
===============================================================================
5.31 LEISURE TIME
AMF Bowling(a) 46,200 271,425
American Classic Voyages(a) 94,500 1,689,187
Bally Total Fitness Holdings(a) 78,800 1,910,900
Carnival Corp 144,600 5,964,750
Cedar Fair LP 102,800 2,467,200
Family Golf Centers(a) 151,400 1,088,187
K2 Inc 64,000 652,000
Premier Parks(a) 15,000 518,438
Royal Caribbean Cruises Ltd 88,000 3,250,500
Steiner Leisure Ltd(a) 35,200 1,117,600
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
Vail Resorts(a) 24,600 $ 476,625
===============================================================================
19,406,812
3.74 LODGING -- HOTELS
Hilton Hotels 153,700 2,401,562
Marriott International
Class A Shrs 268,700 11,251,812
===============================================================================
13,653,374
1.18 MANUFACTURING
Pittway Corp Class A 163,400 4,309,675
===============================================================================
2.18 PHOTOGRAPHY & IMAGING
Gemstar International Group
Ltd(a) 75,500 7,955,813
===============================================================================
8.04 PUBLISHING
Central Newspapers
Class A Shrs 20,000 678,750
Harcourt General 57,100 2,722,956
Houghton Mifflin 68,500 3,056,812
Information Holdings(a) 34,405 683,799
McClatchy Newspapers
Class A Shrs 122,500 4,394,687
McGraw-Hill Cos 79,200 4,375,800
Meredith Corp 30,900 1,133,644
Pearson PLC UK 50,000 1,064,276
Scripps (E W) Co
Class A Shrs 70,000 3,500,000
Times Mirror Series A 23,400 1,368,900
Valassis Communications(a) 114,000 6,384,000
===============================================================================
29,363,624
1.05 REAL ESTATE INVESTMENT TRUST
Golf Trust of America 20,000 443,750
Mills Corp 35,700 698,381
Starwood Hotels & Resorts Worldwide 73,700 2,703,869
===============================================================================
3,846,000
2.90 RETAIL
Hastings Entertainment(a) 99,700 1,526,656
Tuesday Morning(a) 134,200 2,616,900
Wal-Mart Stores 140,000 6,440,000
===============================================================================
10,583,556
10.93 SERVICES
Cendant Corp(a) 61,867 1,113,606
Harte-Hanks Inc 249,900 6,309,975
Omnicom Group 206,000 14,935,000
Penton Media 50,600 1,201,750
WPP Group PLC(a) UK 1,425,000 12,596,215
Young & Rubicam(a) 95,000 3,782,188
===============================================================================
39,938,734
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
1.38 TELECOMMUNICATIONS -- LONG DISTANCE
AT&T Corp 93,648 $ 4,729,224
PT Pasifik Satelit
Nusantara Sponsored ADR
Representing 3 Ord Shrs(a) ID 40,000 300,000
===============================================================================
5,029,224
0.43 TEXTILE -- APPAREL MANUFACTURING
Polo Ralph Lauren(a) 71,600 1,593,100
===============================================================================
0.68 TOBACCO
Philip Morris 71,000 2,489,438
===============================================================================
0.97 TOYS
Hasbro Inc 12,000 409,500
Mattel Inc 79,200 2,049,300
Nintendo Co Ltd JA 11,860 1,105,867
===============================================================================
3,564,667
TOTAL COMMON STOCKS (Cost $188,670,289) 334,285,037
===============================================================================
2.43 PREFERRED STOCKS
0.39 BROADCASTING
ProSieben Media AG, Pfd GM 30,000 1,412,430
===============================================================================
0.95 ENTERTAINMENT
News Corp Ltd Sponsored
ADR Representing 4
Ltd Voting Pfd Shrs AS 99,978 3,055,578
Village Roadshow Ltd
Class A Shrs, Pfd AS 250,000 422,535
===============================================================================
3,478,113
1.09 LEISURE TIME
Royal Caribbean Cruises
Ltd, Series A
7.250%, Conv Pfd 35,000 3,990,000
===============================================================================
TOTAL PREFERRED STOCKS
(Cost $4,926,510) 8,880,543
===============================================================================
3.32 OTHER SECURITIES
3.32 TOBACCO
Cie Financiere Richemont
AG A, Units (Each unit
consists of one bearer
shr at 100 Swiss Francs
par in the Company
and one bearer
participation certificate
at no par issued by
Richemont SA Luxembourg)
(Cost $9,847,625) SZ 7,127 12,142,816
===============================================================================
2.76 SHORT-TERM INVESTMENTS -- COMMERCIAL PAPER
2.76 FINANCIAL
General Motors Acceptance,
4.940%, 5/3/1999
(Cost $10,070,000) $10,070,000 10,070,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $213,514,424)
(Cost for Income Tax
Purposes $213,519,665) $ 365,378,396
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
TECHNOLOGY FUND
89.38 COMMON STOCKS
1.50 BIOTECHNOLOGY
Biogen Inc(a) 95,900 $ 9,116,494
Genentech Inc(a) 184,600 15,621,775
Titan Pharmaceuticals(a) 244,108 778,094
===============================================================================
25,516,363
1.07 BROADCASTING
Broadcast.com Inc(a) 143,000 18,339,750
===============================================================================
7.90 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Carrier Access(a) 96,400 5,006,775
General Instrument(a) 477,600 17,432,400
Nokia Corp Sponsored ADR
Representing Ord Shrs 600,000 44,512,500
Nortel Networks 180,400 12,301,025
Powerwave Technologies(a) 639,300 19,418,737
RF Micro Devices(a) 132,800 7,420,200
Tellabs Inc(a) 261,700 28,672,506
===============================================================================
134,764,143
14.36 COMPUTER SOFTWARE & SERVICE
BroadVision Inc(a) 286,300 16,623,294
CBT Group PLC Sponsored
ADR Representing Ord Shrs(a) 803,800 12,458,900
Compuware Corp(a) 619,000 15,088,125
Excite Inc(a) 63,400 9,256,400
Exodus Communications(a) 239,000 21,539,875
GeoTel Communications(a) 300,000 16,875,000
Inktomi Corp(a) 173,000 20,716,750
InterVU Inc(a) 85,300 4,606,200
Legato Systems(a) 441,600 17,857,200
Microsoft Corp(a) 605,300 49,218,456
Network Solutions Class A(a) 72,900 5,667,975
New Era of Networks(a) 521,600 19,592,600
SoftNet Systems(a) 193,100 6,299,888
USWeb Corp(a) 270,200 6,062,613
Verio Inc(a) 237,600 16,869,600
Verity Inc(a) 175,000 6,125,000
===============================================================================
244,857,876
0.75 COMPUTER SYSTEMS
NCR Corp(a) 312,900 12,828,900
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
5.13 COMPUTERS -- HARDWARE
International Business Machines 119,000 $ 24,893,312
Lexmark International
Group Class A(a) 200,000 24,700,000
Sun Microsystems(a) 634,700 37,962,994
===============================================================================
87,556,306
9.77 COMPUTERS -- NETWORKING
Ascend Communications(a) 189,600 18,320,100
Cisco Systems(a) 417,900 47,666,719
Concentric Network(a) 195,400 16,315,900
Extreme Networks(a) 25,400 1,408,113
Network Appliance(a) 565,000 28,426,562
Novell Inc(a) 600,000 13,350,000
PSINet Inc(a) 182,000 9,191,000
Rhythms NetConnections(a) 112,850 9,310,125
Whittman-Hart Inc(a) 800,300 22,608,475
===============================================================================
166,596,994
1.99 COMPUTERS -- PERIPHERALS
EMC Corp(a) 311,000 33,879,562
===============================================================================
1.51 ELECTRICAL EQUIPMENT
Solectron Corp(a) 531,000 25,753,500
===============================================================================
0.97 ELECTRONICS -- INSTRUMENTS
Uniphase Corp(a) 136,500 16,567,687
===============================================================================
14.32 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 263,200 19,016,200
Applied Micro Circuits(a) 90,900 4,846,106
Atmel Corp(a) 1,370,700 25,015,275
Celestica Inc(a) 130,500 5,105,813
Conexant Systems(a) 583,500 23,777,625
Flextronics International(a) 274,400 12,811,050
Genesis Microchip(a) 314,600 6,527,950
Intel Corp 243,300 14,886,919
Jabil Circuit(a) 474,700 22,103,219
Linear Technology 271,600 15,447,250
Maxim Integrated Products(a) 537,300 30,088,800
PMC-Sierra Inc(a) 48,500 4,649,938
QLogic Corp(a) 168,500 11,784,469
Texas Instruments 223,000 22,773,875
Vitesse Semiconductor(a) 351,100 16,260,319
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
Xilinx Inc(a) 200,000 $ 9,125,000
===============================================================================
244,219,808
5.22 EQUIPMENT -- SEMICONDUCTOR
ASM Lithography Holding
NV New York Registered Shrs(a) 409,80 15,982,200
Applied Materials(a) 372,400 19,969,950
KLA-Tencor Corp(a) 241,000 11,959,625
Lam Research(a) 415,700 13,094,550
Novellus Systems(a) 141,300 6,676,425
Taiwan Semiconductor
Manufacturing Sponsored ADR
Representing 5 Ord Shrs(a) 525,000 12,600,000
Teradyne Inc(a) 184,700 8,715,531
===============================================================================
88,998,281
0.52 INVESTMENT BANK/BROKER FIRM
Hambrecht & Quist Group(a) 252,400 8,897,100
===============================================================================
0.75 OFFICE EQUIPMENT & SUPPLIES
Xerox Corp 217,200 12,760,500
===============================================================================
2.19 OIL & GAS RELATED
Baker Hughes 550,200 16,437,225
Veritas DGC(a) 1,033,400 20,926,350
===============================================================================
37,363,575
1.96 PHOTOGRAPHY & IMAGING
Gemstar International
Group Ltd(a) 317,300 33,435,487
===============================================================================
0.69 RETAIL
eBay Inc(a) 56,700 11,800,687
===============================================================================
13.60 SERVICES
America Online(a) 287,600 41,054,900
BISYS Group(a) 435,200 22,086,400
CMGI Inc(a) 148,600 37,827,987
CIBER Inc(a) 278,500 5,256,688
Critical Path(a) 72,900 7,253,550
Fiserv Inc(a) 555,000 32,502,188
Paychex Inc 154,600 7,894,263
Safeguard Scientifics(a) 287,300 23,271,300
Sapient Corp(a) 204,800 12,851,200
TSI International Software
Ltd(a) 816,600 12,861,450
VeriSign Inc(a) 133,900 15,398,500
VERITAS Software(a) 193,100 13,710,100
===============================================================================
231,968,526
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
1.60 TELECOMMUNICATIONS-- CELLULAR & WIRELESS
AirTouch Communications(a) 82,200 $ 7,675,425
Nextel Communications Class A(a) 453,600 18,569,250
Proxim Inc(a) 27,700 1,066,450
===============================================================================
27,311,125
3.58 TELECOMMUNICATIONS -- LONG DISTANCE
MCI WorldCom(a) 271,200 22,289,250
Qwest Communications
International(a) 300,000 25,631,250
Viatel Inc(a) 286,500 13,179,000
===============================================================================
61,099,500
TOTAL COMMON STOCKS
(Cost $1,103,342,260) 1,524,515,670
===============================================================================
0.00 PREFERRED STOCKS
0.00 BIOTECHNOLOGY
Ingenex Inc, Series B, Pfd(a)(e)
(Cost $300,000) 51,527 31,431
===============================================================================
10.62 SHORT-TERM INVESTMENTS
10.15 COMMERCIAL PAPER
4.58 FINANCIAL
General Electric Capital Services,
4.850%, 5/6/1999 $ 38,050,000 38,050,000
Sears Roebuck Acceptance,
4.850%, 5/4/1999 $ 40,000,000 40,000,000
===============================================================================
78,050,000
3.81 INSURANCE
CIGNA Corp
4.850%, 5/10/1999 $30,000,000 30,000,000
4.810%, 5/5/1999 $35,000,000 35,000,000
===============================================================================
65,000,000
1.76 SERVICES
Hertz Corp, 4.810%, 5/3/1999 $30,000,000 30,000,000
===============================================================================
TOTAL COMMERCIAL PAPER
(Cost $173,050,000) 173,050,000
===============================================================================
0.47 Repurchase Agreements
Repurchase Agreement with
State Street dated
4/30/1999 due 5/3/1999 at
4.820%, repurchased at
$8,053,233 (Collateralized
by US Treasury Bonds, due
8/15/2021 at 8.125%,
value $8,143,619)
(Cost $8,050,000) $ 8,050,000 $8,050,000
===============================================================================
TOTAL SHORT-TERM INVESTMENTS
(Cost $181,100,000) 181,100,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,284,742,260)
(Cost for Income Tax Purposes
$1,287,393,824) $ 1,705,647,101
===============================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
UTILITIES FUND
93.15 COMMON STOCKS
1.99 MACHINERY
Mannesmann AG 30,000 $ 3,954,804
===============================================================================
2.50 SERVICES
Convergys Corp(a) 123,300 2,296,462
Metzler Group(a) 96,100 2,678,788
===============================================================================
4,975,250
14.21 TELECOMMUNICATIONS
AirTouch Communications(a) 72,000 6,723,000
MCI WorldCom(a) 64,490 5,300,272
Qwest Communications
International(a) 99,001 8,458,398
Sprint Corp 76,000 7,794,750
===============================================================================
28,276,420
74.45 UTILITIES
24.03 ELECTRIC
CMS Energy 55,700 2,450,800
Carolina Power & Light 65,300 2,632,406
Consolidated Edison 67,000 3,044,312
DTE Energy 66,200 2,701,787
Duke Energy 45,009 2,520,504
Edison International 92,600 2,268,700
FPL Group 43,300 2,441,037
GPU Inc 53,700 2,047,313
Interstate Energy 89,946 2,591,569
New Century Energies 80,400 2,814,000
NiSource Inc 105,400 2,924,850
Northern States Power 78,600 1,896,225
PG&E Corp 76,000 2,360,750
PP&L Resources 53,241 1,487,420
PacifiCorp 89,600 1,495,200
Pinnacle West Capital 58,700 2,278,294
Reliant Energy 96,600 2,734,988
SCANA Corp 77,200 1,814,200
Texas Utilities 53,900 2,142,525
Unicom Corp 81,700 3,170,981
===============================================================================
47,817,861
9.21 NATURAL GAS
Coastal Corp 94,000 3,595,500
Columbia Energy Group 39,000 1,874,437
Enron Corp 42,000 3,160,500
New Jersey Resources 55,800 2,057,625
ONEOK Inc 51,000 1,424,813
TransCanada PipeLines Ltd 115,000 1,595,625
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE PRINCIPAL
% DESCRIPTION IF NON US AMOUNT VALUE
Williams Cos 98,000 $ 4,630,500
===============================================================================
18,339,000
41.21 TELEPHONE
ALLTEL Corp 71,300 4,808,294
Ameritech Corp 132,000 9,033,750
Bell Atlantic 90,270 5,201,809
BellSouth Corp 161,800 7,240,550
Century Telephone Enterprises 138,825 5,587,706
Cincinnati Bell 123,300 2,789,662
COLT Telecom Group PLC Sponsored
ADR Representing 4 Ord Shrs(a) 73,100 5,583,013
Frontier Corp 38,000 2,097,125
GTE Corp 81,800 5,475,488
Intermedia Communications(a) 150,000 4,828,125
MetroNet Communications Class
B Non-Voting Shrs(a) 197,000 10,933,500
SBC Communications 145,000 8,120,000
Telefonica de Espana SA Sponsored
ADR Representing 3 Ord Shrs 40,858 5,694,603
US WEST 88,300 4,619,194
===============================================================================
82,012,819
TOTAL UTILITIES 148,169,680
===============================================================================
TOTAL COMMON STOCKS (Cost $111,739,869) 185,376,154
===============================================================================
6.85 SHORT-TERM INVESTMENTS
5.02 COMMERCIAL PAPER
5.02 FINANCIAL
General Motors Acceptance,
4.942%, 5/3/1999
(Cost $10,000,000) $10,000,000 10,000,000
===============================================================================
1.83 Repurchase Agreements
Repurchase Agreement with
State Street dated 4/30/1999
due 5/3/1999 at 4.820%,
repurchased at $3,641,462
(Collateralized by US Treasury
Bonds due 8/15/2021
at 8.125%, value $3,680,042)
(Cost $3,640,000) $ 3,640,000 3,640,000
===============================================================================
TOTAL SHORT-TERM INVESTMENTS
(Cost $13,640,000) 13,640,000
===============================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $125,379,869)
(Cost for Income Tax Purposes $125,380,546) $ 199,016,154
===============================================================================
(a) Security is non-income producing.
(b) Security is an affiliated company (See Notes).
(c) Securities acquired pursuant to Rule 144A. The Fund deems such securities
to be "liquid" because an institutional market exists.
(d) Security has no market value at April 30, 1999.
(e) The following are restricted securities at April 30, 1999:
<PAGE>
SCHEDULE OF RESTRICTED OR ILLIQUID SECURITIES
VALUE AS
ACQUISITION ACQUISITION % OF
DESCRIPTION DATE(S) COST NET ASSETS
- -------------------------------------------------------------------------------
HEALTH SCIENCES FUND
Clarus Medical Systems
Series I, Pfd 12/23/92 $2,000,000 0.03 %
Series II, Pfd 5/3/95 111,196 0.01
Warrants (Exp 2000) 5/3/95 0 0.00
Ecogen Technologies I 11/18/92-
1/28/94 1,140,000 0.00
Ingenex Inc Series B, Pfd 9/27/94 600,000 0.00
Janus Biomedical Series A,
Conv Pfd 3/2/94 1,000,000 0.00
MedClone Trust 9/30/97 101,310 0.00
MedClone Trust Series G,
Conv Pfd 10/21/93 1,000,001 0.00
Osiris Therapeutics Series
C, Conv Pfd 5/26/94 1,300,000 0.08
Physicians Online
Bridge Notes, 11.000%,
10/31/2000 6/10/98 292,070 0.02
Series A, Pfd 8/31/93 963,600 0.12
Xenometrix Inc 1/7/94 1,226,971 0.00
===============================================================================
0.26 %
===============================================================================
TECHNOLOGY FUND
Ingenex Inc, Series B, Pfd 9/27/94 $ 300,000 0.00 %
===============================================================================
SUMMARY OF INVESTMENTS BY COUNTRY
% OF
COUNTRY INVESTMENT
COUNTRY CODE SECURITIES VALUE
- -------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
Canada CA 6.36% $ 95,530,000
France FR 1.20 17,970,976
Germany GM 0.17 2,507,460
Netherlands NL 1.94 29,147,889
Spain SP 1.13 16,966,934
United Kingdom UK 1.28 19,282,558
United States US 87.92 1,320,083,113
===============================================================================
100.00% $ 1,501,488,930
===============================================================================
GOLD FUND
Australia AS 3.07% $ 3,843,125
Canada CA 49.80 62,389,659
Cayman Islands CJ 2.52 3,156,250
France FR 0.41 515,004
Ghana GH 2.51 3,150,000
United States US 41.69 52,221,555
===============================================================================
100.00% $ 125,275,593
===============================================================================
<PAGE>
SUMMARY OF INVESTMENTS BY COUNTRY (CONTINUED)
% OF
COUNTRY INVESTMENT
COUNTRY CODE SECURITIES VALUE
- -------------------------------------------------------------------------------
LEISURE FUND
Australia AS 0.95% $ 3,478,113
Bermuda BD 0.70 2,569,294
Canada CA 1.46 5,312,838
Germany GM 0.39 1,412,430
Hong Kong HK 0.34 1,255,900
Indonesia ID 0.08 300,000
Japan JA 0.30 1,105,867
Netherlands NL 2.91 10,638,984
South Africa SF 0.97 3,554,950
Switzerland SZ 3.53 12,892,816
United Kingdom UK 5.47 19,964,422
United States US 82.90 302,892,782
===============================================================================
100.00% $ 365,378,396
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
FINANCIAL
ENERGY SERVICES
FUND FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $191,111,334 $1,076,640,495
===============================================================================
At Value(a) $223,261,006 $1,501,488,930
Receivables:
Investment Securities Sold 8,958,854 11,501,794
Fund Shares Sold 4,651,530 5,508,986
Dividends and Interest 132,277 2,096,148
Prepaid Expenses and Other Assets 27,415 166,724
===============================================================================
TOTAL ASSETS 237,031,082 1,520,762,582
===============================================================================
LIABILITIES
Payables:
Custodian 1,352 190,154
Investment Securities Purchased 26,606,062 0
Fund Shares Repurchased 23,266,711 4,158,606
Accrued Distribution Expenses 32,447 305,574
Accrued Expenses and Other Payables 8,687 29,550
===============================================================================
TOTAL LIABILITIES 49,915,259 4,683,884
===============================================================================
NET ASSETS AT VALUE $187,115,823 $1,516,078,698
===============================================================================
NET ASSETS
Paid-in Capital(b) $195,064,285 $1,038,426,924
Accumulated Undistributed Net
Investment Income 10,385 1,856,685
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (40,108,519) 50,954,688
Net Appreciation of Investment
Securities and Foreign
Currency Transactions 32,149,672 424,840,401
===============================================================================
NET ASSETS AT VALUE $187,115,823 $1,516,078,698
===============================================================================
Shares Outstanding 14,141,572 46,966,591
NET ASSET VALUE, Offering
and Redemption Price per Share $ 13.23 $ 32.28
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include repurchase
agreements of $21,537,000 and $13,605,000 for Energy and Financial Services
Funds, respectively.
(b)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 Fund and/or class.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
HEALTH
GOLD SCIENCES
FUND FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $155,048,247 $1,228,433,132
===============================================================================
At Value(a) $125,275,593 $1,551,452,166
Foreign Currency (Cost $0 and
$308,394, respectively) 0 305,624
Receivables:
Investment Securities Sold 135,265 9,896,163
Fund Shares Sold 2,278,455 5,050,752
Dividends and Interest 33,993 2,118,918
Prepaid Expenses and Other Assets 42,194 181,355
===============================================================================
TOTAL ASSETS 127,765,500 1,569,004,978
===============================================================================
LIABILITIES
Payables:
Custodian 137,128 926,933
Investment Securities Purchased 5,729,856 0
Fund Shares Repurchased 15,048,283 1,981,882
Accrued Distribution Expenses 20,562 343,485
Accrued Expenses and Other Payables 32,048 50,124
===============================================================================
TOTAL LIABILITIES 20,967,877 3,302,424
===============================================================================
NET ASSETS AT VALUE $106,797,623 $1,565,702,554
===============================================================================
NET ASSETS
Paid-in Capital(b) $293,043,265 $1,176,045,525
Accumulated Undistributed
Net Investment Loss (4,774,256) (272,754)
Accumulated Undistributed
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (151,698,732) 66,915,189
Net Appreciation (Depreciation)
of Investment Securities and
Foreign Currency Transactions (29,772,654) 323,014,594
===============================================================================
NET ASSETS AT VALUE $106,797,623 $1,565,702,554
===============================================================================
Shares Outstanding 51,854,750 27,088,054
NET ASSET VALUE, Offering and
Redemption Price per Share $ 2.06 $ 57.80
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include a
repurchase agreement of $18,620,000 for Gold Fund.
(b)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 Fund and/or class.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
LEISURE UTILITIES
FUND FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $213,514,424 $125,379,869
===============================================================================
At Value(a) $365,378,396 $199,016,154
Cash 13,832 3,805
Receivables:
Investment Securities Sold 134,763 0
Fund Shares Sold 1,315,239 1,648,502
Dividends and Interest 255,243 598,025
Prepaid Expenses and Other Assets 54,673 203,339
===============================================================================
TOTAL ASSETS 367,152,146 201,469,825
===============================================================================
LIABILITIES
Payables:
Distributions to Shareholders 0 32,117
Investment Securities Purchased 1,605,900 0
Fund Shares Repurchased 997,852 4,819,516
Accrued Distribution Expenses 71,239 40,246
Accrued Expenses and Other Payables 21,459 9,957
===============================================================================
TOTAL LIABILITIES 2,696,450 4,901,836
===============================================================================
NET ASSETS AT VALUE $364,455,696 $196,567,989
===============================================================================
NET ASSETS
Paid-in Capital(b) $196,322,974 $117,635,607
Accumulated Undistributed
Net Investment Income (Loss) (923,010) 2,018
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 17,192,400 5,298,031
Net Appreciation of Investment
Securities and Foreign
Currency Transactions 151,863,332 73,632,333
===============================================================================
NET ASSETS AT VALUE $364,455,696 $196,567,989
===============================================================================
Shares Outstanding 9,636,815 11,457,115
NET ASSET VALUE, Offering
and Redemption
Price per Share $ 37.82 $ 17.16
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include a
repurchase agreement of $3,640,000 for Utilities Fund.
(b)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 Fund and/or class.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
APRIL 30, 1999
UNAUDITED
TECHNOLOGY
FUND
- -------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $1,284,742,260
===============================================================================
At Value(a) $1,705,647,101
Receivables:
Investment Securities Sold 23,920,653
Fund Shares Sold 43,208,079
Dividends and Interest 91,198
Prepaid Expenses and Other Assets 157,582
===============================================================================
TOTAL ASSETS 1,773,024,613
===============================================================================
LIABILITIES
Payables:
Custodian 6,430
Investment Securities Purchased 66,285,566
Fund Shares Repurchased 1,677,373
Accrued Distribution
Expenses - Class II 279,234
Accrued Expenses and Other Payables 20,526
===============================================================================
TOTAL LIABILITIES 68,269,129
===============================================================================
NET ASSETS AT VALUE $1,704,755,484
===============================================================================
NET ASSETS
Paid-in Capital(b) $1,155,493,294
Accumulated Undistributed Net
Investment Loss (4,686,548)
Accumulated Undistributed Net
Realized Gain on Investment Securities
and Foreign Currency Transactions 133,043,897
Net Appreciation of Investment Securities
and Foreign Currency Transactions 420,904,841
===============================================================================
NET ASSETS AT VALUE,
Applicable to Shares Outstanding $ 1,704,755,484
===============================================================================
NET ASSETS AT VALUE:
Class I $364,743,841
===============================================================================
Class II $1,340,011,643
===============================================================================
Shares Outstanding
Class I 8,854,958
Class II 32,596,574
NET ASSET VALUE, Offering and
Redemption Price per Share
Class I $ 41.19
Class II $ 41.11
===============================================================================
(a)Investment securities at cost and value at April 30, 1999 include a
repurchase agreement of $8,050,000.
(b)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 Fund and/or class.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO SECTOR FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 1999
UNAUDITED
FINANCIAL
ENERGY SERVICES
FUND FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 1,153,568 $ 9,008,798
Interest 120,067 1,578,628
Foreign Taxes Withheld (13,231) (90,527)
===============================================================================
TOTAL INCOME 1,260,404 10,496,899
===============================================================================
EXPENSES
Investment Advisory Fees 448,311 4,501,882
Distribution Expenses 162,444 1,809,635
Transfer Agent Fees 377,834 1,671,659
Administrative Fees 13,966 113,578
Custodian Fees and Expenses 12,057 135,202
Directors' Fees and Expenses 8,758 38,300
Professional Fees and Expenses 8,830 30,253
Registration Fees and Expenses 22,095 83,824
Reports to Shareholders 81,141 318,615
Other Expenses 9,255 50,758
===============================================================================
TOTAL EXPENSES 1,144,691 8,753,706
Fees and Expenses Paid Indirectly (20,078) (135,409)
===============================================================================
NET EXPENSES 1,124,613 8,618,297
===============================================================================
NET INVESTMENT INCOME 135,791 1,878,602
===============================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities (4,506,099) 53,351,490
Foreign Currency Transactions (15,203) (1,692,608)
===============================================================================
Total Net Realized Gain (Loss) (4,521,302) 51,658,882
===============================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 31,352,450 248,927,524
Foreign Currency Transactions 0 (5,567,260)
===============================================================================
Total Net Appreciation 31,352,450 243,360,264
===============================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 26,831,148 295,019,146
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $26,966,939 $296,897,748
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO SECTOR FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 1999
UNAUDITED
HEALTH
GOLD SCIENCES
FUND FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 170,013 $ 7,440,563
Interest 108,936 1,519,900
Foreign Taxes Withheld (23,859) (125,069)
===============================================================================
TOTAL INCOME 255,090 8,835,394
===============================================================================
EXPENSES
Investment Advisory Fees 380,076 4,791,745
Distribution Expenses 139,912 1,941,391
Transfer Agent Fees 410,044 1,682,262
Administrative Fees 12,602 121,484
Custodian Fees and Expenses 26,929 110,721
Directors' Fees and Expenses 7,613 37,605
Professional Fees and Expenses 9,436 34,801
Registration Fees and Expenses 23,021 47,541
Reports to Shareholders 88,882 354,002
Other Expenses 17,006 40,128
===============================================================================
TOTAL EXPENSES 1,115,521 9,161,680
Fees and Expenses Paid Indirectly (34,581) (107,070)
===============================================================================
NET EXPENSES 1,080,940 9,054,610
===============================================================================
NET INVESTMENT LOSS (825,850) (219,216)
===============================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities (17,319,566) 69,592,971
Foreign Currency Transactions (1,142,156) 201
===============================================================================
Total Net Realized Gain (Loss) (18,461,722) 69,593,172
===============================================================================
Change in Net Appreciation
(Depreciation) of:
Investment Securities 22,859,409 25,183,017
Foreign Currency Transactions 4,347,943 (5,367,317)
===============================================================================
Total Net Appreciation 27,207,352 19,815,700
===============================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 8,745,630 89,408,872
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $7,919,780 $ 89,189,656
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO SECTOR FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 1999
UNAUDITED
LEISURE UTILITIES
FUND FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 802,012 $ 1,927,098
Interest 377,408 248,212
Foreign Taxes Withheld (18,636) (6,355)
===============================================================================
TOTAL INCOME 1,160,784 2,168,955
===============================================================================
EXPENSES
Investment Advisory Fees 1,067,845 702,662
Distribution Expenses 356,079 234,221
Transfer Agent Fees 439,932 265,656
Administrative Fees 26,367 19,053
Custodian Fees and Expenses 44,470 13,910
Directors' Fees and Expenses 9,920 8,272
Professional Fees and Expenses 12,261 9,959
Registration Fees and Expenses 20,980 23,396
Reports to Shareholders 109,827 65,102
Other Expenses 5,654 4,116
===============================================================================
TOTAL EXPENSES 2,093,335 1,346,347
Fees and Expenses Absorbed
by Investment Advisor 0 (166,116)
Fees and Expenses Paid Indirectly (27,568) (8,554)
===============================================================================
NET EXPENSES 2,065,767 1,171,677
===============================================================================
NET INVESTMENT INCOME (LOSS) (904,983) 997,278
===============================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 18,124,736 5,693,547
Foreign Currency Transactions 7,797 (57,083)
===============================================================================
Total Net Realized Gain 18,132,533 5,636,464
===============================================================================
Change in Net Appreciation
(Depreciation) of:
Investment Securities 89,894,948 26,322,442
Foreign Currency Transactions (2,596,836) (350,193)
===============================================================================
Total Net Appreciation 87,298,112 25,972,249
===============================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 105,430,645 31,608,713
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $104,525,662 $32,605,991
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO SECTOR FUNDS, INC.
PERIOD ENDED APRIL 30, 1999 (NOTE 1)
UNAUDITED
TECHNOLOGY
FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 881,940
Interest 2,355,623
Foreign Taxes Withheld (46,546)
===============================================================================
TOTAL INCOME 3,191,017
===============================================================================
EXPENSES
Investment Advisory Fees 4,239,369
Distribution Expenses - Class II 1,484,042
Transfer Agent Fees 1,517,031
Administrative Fees 106,419
Custodian Fees and Expenses 75,108
Directors' Fees and Expenses 32,611
Professional Fees and Expenses 29,230
Registration Fees and Expenses 56,257
Reports to Shareholders 316,597
Other Expenses 26,282
===============================================================================
TOTAL EXPENSES 7,882,946
Fees and Expenses Paid Indirectly (48,851)
===============================================================================
NET EXPENSES 7,834,095
===============================================================================
NET INVESTMENT LOSS (4,643,078)
===============================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 231,064,876
Foreign Currency Transactions 43,028
===============================================================================
Total Net Realized Gain 231,107,904
===============================================================================
Change in Net Appreciation of:
Investment Securities 250,869,708
Foreign Currency Transactions 105,278
===============================================================================
Total Net Appreciation 250,974,986
===============================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 482,082,890
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 477,439,812
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
ENERGY FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Income $ 135,791 $ 16,233
Net Realized Loss on Investment
Securities and Foreign
Currency Transactions (4,521,302) (35,129,895)
Change in Net Appreciation
(Depreciation) of Investment
Securities 31,352,450 (40,132,785)
===============================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 26,966,939 (75,246,447)
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (115,168) (167,166)
In Excess of Net Investment Income 0 (2,454)
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions 0 (4,468,073)
In Excess of Net Realized Gain on
Investment Securities and
Foreign Currency Transactions 0 (35,552,458)
===============================================================================
TOTAL DISTRIBUTIONS (115,168) (40,190,151)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 389,582,061 591,680,044
Reinvestment of Distributions 108,078 37,731,064
===============================================================================
389,690,139 629,411,108
Amounts Paid for Repurchases
of Shares (366,881,482)(696,170,359)
===============================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS 22,808,657 (66,759,251)
===============================================================================
Total Increase (Decrease) in
Net Assets 49,660,428 (182,195,849)
NET ASSETS
Beginning of Period 137,455,395 319,651,244
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Income
of $10,385 and ($10,238),
respectively) $187,115,823 $137,455,395
===============================================================================
----------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 36,007,932 44,134,902
Shares Issued from
Reinvestment of Distributions 10,747 2,803,292
===============================================================================
36,018,679 46,938,194
Shares Repurchased (34,037,655) (51,273,648)
===============================================================================
Net Increase (Decrease) in
Fund Shares 1,981,024 (4,335,454)
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FINANCIAL SERVICES FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Income $ 1,878,602 $ 12,285,909
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions 51,658,882 108,562,536
Change in Net Appreciation of
Investment Securities
and Foreign Currency Transactions 243,360,264 (5,267,763)
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 296,897,748 115,580,682
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (12,269,881)
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions (109,016,097) (148,103,393)
===============================================================================
TOTAL DISTRIBUTIONS (109,016,097) (160,373,274)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 956,731,833 1,718,344,847
Reinvestment of Distributions 105,587,754 150,190,546
===============================================================================
1,062,319,587 1,868,535,393
Amounts Paid for Repurchases
of Shares (1,151,777,099)(1,519,342,944)
===============================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROm FUND SHARE
TRANSACTIONS (89,457,512) 349,192,449
===============================================================================
TOTAL INCREASE IN NET ASSETS 98,424,139 304,399,857
NET ASSETS
Beginning of Period 1,417,654,559 1,113,254,702
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Income
of $1,856,685 and ($21,917),
respectively) $1,516,078,698 $1,417,654,559
===============================================================================
-----------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 32,225,722 57,179,200
Shares Issued from Reinvestment
of Distributions 3,941,312 5,459,331
===============================================================================
36,167,034 62,638,531
Shares Repurchased (39,034,786) (51,007,064)
===============================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (2,867,752) 11,631,467
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GOLD FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Loss $ (825,850)$ (1,116,660)
Net Realized Loss on Investment
Securities and
Foreign Currency Transactions (18,461,722) (65,297,806)
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 27,207,352 6,058,834
===============================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 7,919,780 (60,355,632)
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income 0 (1,637,391)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 299,542,041 703,190,475
Reinvestment of Distributions 0 1,520,914
===============================================================================
299,542,041 704,711,389
Amounts Paid for Repurchases
of Shares (307,913,584) (686,554,223)
===============================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM
FUND SHARE TRANSACTIONS (8,371,543) 18,157,166
===============================================================================
TOTAL DECREASE IN NET ASSETS (451,763) (43,835,857)
NET ASSETS
Beginning of Period 107,249,386 151,085,243
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Loss of
($4,774,256) and ($3,948,406),
respectively) $106,797,623 $107,249,386
===============================================================================
-------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 156,539,620 319,522,708
Shares Issued from Reinvestment
of Distributions 0 652,176
===============================================================================
156,539,620 320,174,884
Shares Repurchased (161,131,459) (310,832,754)
===============================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (4,591,839) 9,342,130
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
HEALTH SCIENCES FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Income (Loss) $ (219,216) $ 2,746,844
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions 69,593,172 196,825,886
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 19,815,700 68,341,567
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 89,189,656 267,914,297
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (4,765,887)
In Excess of Net Investment Income 0 (53,859)
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions (198,900,404) (147,796,033)
===============================================================================
TOTAL DISTRIBUTIONS (198,900,404) (152,615,779)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 1,060,776,501 1,309,995,468
Reinvestment of Distributions 189,824,037 142,313,946
===============================================================================
1,250,600,538 1,452,309,414
Amounts Paid for Repurchases
of Shares (903,382,991) (1,183,910,039)
===============================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 347,217,547 268,399,375
===============================================================================
TOTAL INCREASE IN NET ASSETS 237,506,799 383,697,893
NET ASSETS
Beginning of Period 1,328,195,755 944,497,862
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Loss of
($272,754) and ($53,538),
respectively) $1,565,702,554 $1,328,195,755
===============================================================================
-------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 17,220,100 22,644,603
Shares Issued from Reinvestment
of Distributions 3,279,634 2,979,770
===============================================================================
20,499,734 25,624,373
Shares Repurchased (14,792,474) (20,669,473)
===============================================================================
NET INCREASE IN FUND SHARES 5,707,260 4,954,900
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
LEISURE FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Loss $ (904,983) $ (191,426)
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions 18,132,533 15,595,389
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 87,298,112 15,720,560
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 104,525,662 31,124,523
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income 0 (8,831)
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions (15,505,555) (22,821,029)
===============================================================================
TOTAL DISTRIBUTIONS (15,505,555) (22,829,860)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 167,792,819 217,846,689
Reinvestment of Distributions 15,149,271 21,894,580
===============================================================================
182,942,090 239,741,269
Amounts Paid for Repurchases
of Shares (136,187,568) (235,970,629)
===============================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 46,754,522 3,770,640
===============================================================================
TOTAL INCREASE IN NET ASSETS 135,774,629 12,065,303
NET ASSETS
Beginning of Period 228,681,067 216,615,764
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Loss of
($923,010) and ($18,027),
respectively) $364,455,696 $228,681,067
===============================================================================
----------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 5,084,295 7,793,967
Shares Issued from Reinvestment
of Distributions 532,487 899,529
===============================================================================
5,616,782 8,693,496
Shares Repurchased (4,169,875) (8,465,353)
===============================================================================
NET INCREASE IN FUND SHARES 1,446,907 228,143
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
UTILITIES FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
UNAUDITED
OPERATIONS
Net Investment Income $ 997,278 $ 3,225,819
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions 5,636,464 2,637,629
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 25,972,249 30,143,538
===============================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS 32,605,991 36,006,986
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,477,740) (3,220,692)
Net Realized Gain on Investment
Securities and
Foreign Currency Transactions (2,496,498) (3,970,217)
===============================================================================
TOTAL DISTRIBUTIONS (3,974,238) (7,190,909)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 93,346,535 446,364,689
Reinvestment of Distributions 3,788,186 6,686,820
===============================================================================
97,134,721 453,051,509
Amounts Paid for Repurchases of
Shares (106,507,820) (436,981,400)
===============================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS (9,373,099) 16,070,109
===============================================================================
TOTAL INCREASE IN NET ASSETS 19,258,654 44,886,186
NET ASSETS
Beginning of Period 177,309,335 132,423,149
===============================================================================
End of Period (Including
Accumulated Undistributed
Net Investment Income of
$2,018 and $482,480,
respectively) $ 196,567,989 $177,309,335
===============================================================================
--------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 5,764,004 32,309,451
Shares Issued from Reinvestment
of Distributions 242,236 489,728
===============================================================================
6,006,240 32,799,179
Shares Repurchased (6,583,165) (31,429,955)
===============================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (576,925) 1,369,224
===============================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TECHNOLOGY FUND
PERIOD YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
(Note 1)
UNAUDITED
OPERATIONS
Net Investment Loss $(4,643,078)$ (5,170,961)
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions 231,107,904 (96,330,143)
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 250,974,986 75,738,741
===============================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 477,439,812 (25,762,363)
===============================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment
Income - Class II 0 (32,284)
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions - Class II 0 (94,248,558)
In Excess of Net Realized Gain on
Investment Securities and
Foreign Currency Transactions - Class II 0 (98,305,920)
===============================================================================
TOTAL DISTRIBUTIONS 0 (192,586,762)
===============================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Class I 358,039,490 0
Class II 1,208,116,134 1,501,056,910
Reinvestment of Distributions
- Class II 0 181,493,943
===============================================================================
1,566,155,624 1,682,550,853
===============================================================================
Amounts Paid for Repurchases of
Shares
Class I (29,733,307) 0
Class II (1,317,877,440) (1,495,399,337)
===============================================================================
(1,347,610,747) (1,495,399,337)
===============================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 218,544,877 187,151,516
===============================================================================
TOTAL INCREASE (DECREASE) IN
NET ASSETS 695,984,689 (31,197,609)
NET ASSETS
Beginning of Period 1,008,770,795 1,039,968,404
===============================================================================
End of Period (Including
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Loss of
($4,686,548) and ($43,470),
respectively) $1,704,755,484 $1,008,770,795
===============================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TECHNOLOGY FUND (CONTINUED)
PERIOD YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998
(Note 1)
UNAUDITED
FUND SHARE TRANSACTIONS
Shares Sold
Class I 9,650,818 0
Class II 33,670,774 51,002,134
Shares Issued from Reinvestment
of Distributions - Class II 0 7,022,355
===============================================================================
43,321,592 58,024,489
===============================================================================
Shares Repurchased
Class I (795,860) 0
Class II (37,012,414) (50,998,957)
===============================================================================
(37,808,274) (50,998,957)
===============================================================================
Net Increase in Fund Shares 5,513,318 7,025,532
===============================================================================
See Notes to Financial Statements
<PAGE>
INVESCO NOTES TO FINANCIAL STATEMENTS - INVESCO SECTOR FUNDS, INC.
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Sector
Funds, Inc. (formerly known as INVESCO Strategic Funds, Inc. which were formerly
known as INVESCO Strategic Portfolios, Inc.) (the "Fund") is incorporated in
Maryland and presently consists of seven separate Funds: Energy Fund, Financial
Services Fund, Gold Fund, Health Sciences Fund, Leisure Fund, Technology Fund
and Utilities Fund. On December 29, 1998, the board of directors of the Fund
approved a name change to INVESCO Sector Funds, Inc. On February 3, 1999, the
board of directors of the Fund approved the liquidation of Environmental
Services Fund and effective May 21, 1999, Environmental Services Fund liquidated
its assets and closed the Fund. The investment objectives of the Funds are to
seek capital appreciation through investments in specific business sectors.
Additionally, Utilities Fund 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.
Effective December 22, 1998, Technology Fund offers two classes of shares,
referred to as Class I shares and Class II shares. Class I shares are not
subject to any distribution fees, while Class II shares are subject to an annual
distribution fee to a maximum of 0.25% of the Fund's annual average net assets
attributable to Class II shares. Income, expenses (other than those attributable
to a specific class) and gains and losses are allocated daily to each class of
shares based on the relative proportion of new assets represented by such class.
Operating expenses directly attributable to a specific class are charged against
operations of that class.
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 under procedures
established 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.
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.
<PAGE>
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. In the event of default on the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the other party to the agreement, realization and/or retention of
the collateral or proceeds may be subject to legal proceedings.
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. Income and expenses on
foreign securities are translated into U.S dollars at rates of exchange
prevailing when accrued. 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. The cost of
foreign securities is translated into U.S. dollars at the rates of exchange
prevailing when such securities are acquired.
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 investment securities includes fluctuations from currency exchange rates
and fluctuations in market value.
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.
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 Fund to sell a security at a fair price and may substantially delay the
sale of the security which each Fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
D. FEDERAL AND STATE TAXES -- The Fund has complied, and continues to comply,
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
distributions of net investment income and net realized capital gains, if any,
to relieve it from all federal and state income taxes and federal excise taxes.
At October 31, 1998, Energy had $32,145,203 in net capital loss carryovers which
expire in the year 2006, Gold Fund had $1,051,643, $65,174,126 and $64,972,554
in net capital loss carryovers which expire in the years 2003, 2005 and 2006,
respectively, and Technology had $95,219,757 in net capital loss carryovers
which expire in the year 2006.
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.
<PAGE>
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex dividend/distribution date. The
Fund distributes net realized capital gains, if any, to its shareholders at
least annually, if not offset by capital loss carryovers. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for 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. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
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 Funds bears expenses incurred specifically on its
behalf and, in addition, each Fund bears a portion of general expenses, based on
the relative net assets of each Fund.
Under an agreement between each Fund 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, Custodian Fees and Expenses for
Health Sciences and Financial Services Funds and Distribution Expenses and
Transfer Agent Fees for all Funds are reduced by credits earned by each Fund
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, 1999, Fees and Expenses Paid Indirectly
consisted of the following:
CUSTODIAN FEESDISTRIBUTION TRANSFER
FUND AND EXPENSES EXPENSES AGENT FEES
- -------------------------------------------------------------------------------
Energy Fund $ 7,070 $ 13,008 $ 0
Financial Services Fund 135,409 0 0
Gold Fund 14,935 13,220 6,426
Health Sciences Fund 107,070 0 0
Leisure Fund 27,568 0 0
Utilities Fund 8,554 0 0
Technology Fund 48,851 0 0
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Funds' investment adviser. As compensation for its
services to the Funds, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee for each Fund is based on
the annual rate of 0.75% on the first $350 million of average net assets;
reduced to 0.65% on the next $350 million of average net assets; and 0.55% on
average net assets in excess of $700 million. Effective May 13, 1999, the
following breakpoints became contractual: 0.45% on average net assets in excess
of $2 billion, 0.40% on average net assets in excess of $4 billion, 0.375% on
average net assets in excess of $5 billion and 0.35% on average net assets in
excess of $6 billion.
<PAGE>
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
compensation of marketing and advertising expenditures to INVESCO Distributors,
Inc. ("IDI" or the "Distributor"), a wholly owned subsidiary of IFG, to a
maximum of 0.25% of annual average net assets. For the six months ended April
30, 1999, Energy, Financial Services, Gold, Health Sciences, Leisure, Utilities
and Technology - Class II Funds paid the Distributor $145,755, $1,777,283,
$132,647, $1,860,376, $327,731, $229,837, and $1,397,194, respectively, under
the plan of distribution.
IFG receives a transfer agent fee from each Fund 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.
In accordance with an Administrative Agreement, each Fund paid 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. Effective May 13, 1999, each Fund
pays IFG an annual fee of $10,000, plus an additional amount computed at an
annual rate of 0.045% of average net assets.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by Utilities Fund.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
April 30, 1999, 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:
FUND PURCHASES SALES
- -------------------------------------------------------------------------------
Energy Fund $240,911,727 $195,789,334
Financial Services Fund 523,920,599 615,681,504
Gold Fund 78,040,385 82,454,107
Health Sciences Fund 575,484,797 358,801,504
Leisure Fund 88,473,956 46,895,145
Utilities Fund 12,414,173 16,213,425
Technology Fund 1,244,987,263 1,180,463,215
There were no purchases or sales of U.S. Government securities.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At April 30, 1999, 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 Fund were as
follows:
NET
GROSS GROSS APPRECIATION
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- -------------------------------------------------------------------------------
Energy Fund $30,388,636 $ 746,731 $ 29,641,905
Financial Services Fund 442,621,187 18,872,779 423,748,408
Gold Fund 20,189,341 52,424,660 (32,235,319)
Health Sciences Fund 332,046,750 12,513,149 319,533,601
Leisure Fund 159,873,809 8,015,078 151,858,731
Utilities Fund 75,165,854 1,530,246 73,635,608
Technology Fund 459,026,329 40,773,052 418,253,277
NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of
the Fund's officers and directors are also officers and directors of IFG or IDI.
Each Fund has adopted an unfunded defined benefit 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 equal to 50% of the sum of the
retainer fee at the time of retirement plus the annual meeting fee.
<PAGE>
Pension expenses for the six months ended April 30, 1999, 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
FUND EXPENSES PENSION COSTS LIABILITY
- -------------------------------------------------------------------------------
Energy Fund $ 3,197 $ 4,721 $ 17,903
Financial Services Fund 17,342 33,491 85,023
Gold Fund 2,272 15,912 36,678
Health Sciences Fund 16,337 47,014 115,363
Leisure Fund 2,938 14,635 35,120
Utilities Fund 2,121 8,420 19,453
Technology Fund 14,503 30,327 87,169
The independent directors have contributed to a deferred fee agreement, pursuant
to which they have deferred receipt of a portion of the compensation which they
would otherwise have been paid as directors of selected INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO or
Treasurer's Series Trust Funds.
An affiliated company represents ownership by a Fund 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, 1999, in which
the issuer was an affiliate of the Fund, is as follows:
REALIZED
LOSS
PURCHASES SALES ON INVESTMENTS VALUE AT
------------------------------
AFFILIATE SHARES COST SHARES COST SECURITIES 4/30/99
- -------------------------------------------------------------------------------
GOLD FUND
Crown Resources -- -- 125,000 $841,43 $(672,848) $1,046,563
Guyanor Ressources
SA Class B -- -- -- -- -- 515,004
Pacific Rim Mining -- -- -- -- -- 1,047,919
Star Resources -- -- -- -- -- 532,239
HEALTH SCIENCES FUND
Ecogen
Technologies I -- -- -- -- -- 1
Janus Biomedical
Series A, Conv
Pfd -- -- -- -- -- 1
Physicians Online
Bridge Notes,
11.000%
10/31/2000 -- -- -- -- -- 292,070
Series A, Pfd -- -- -- -- -- 1,954,904
NOTE 6 -- LINE OF CREDIT. Each 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
Fund. Each Fund 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, 1999, there were no such borrowings.
<PAGE>
FINANCIAL HIGHLIGHTS
ENERGY FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 11.30 $19.38 $15.03 $10.09 $10.77 $11.53
===============================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income(a) 0.01 0.00 0.06 0.04 0.09 0.06
Net Gains or (Losses)
on Securities
(Both Realized
and Unrealized) 1.93 (5.04) 5.56 4.94 (0.68) (0.76)
===============================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.94 (5.04) 5.62 4.98 (0.59) (0.70)
===============================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment
Income(b) 0.01 0.01 0.05 0.04 0.09 0.06
Distributions from
Capital Gains 0.00 0.34 1.22 0.00 0.00 0.00
In Excess of Capital
Gains 0.00 2.69 0.00 0.00 0.00 0.00
===============================================================================
TOTAL DISTRIBUTIONS 0.01 3.04 1.27 0.04 0.09 0.06
===============================================================================
Net Asset Value--
End of Period $ 13.23 $11.30 $19.38 $15.03 $10.09 $10.77
===============================================================================
TOTAL RETURN 17.21%(c) (28.51%) 40.65% 49.33% (5.45%) (6.04%)
RATIOS
Net Assets -- End
of Period
($000 Omitted) $187,116 $137,455 $319,651 $236,169 $48,284 $73,767
Ratio of Expenses to
Average Net
Assets 0.95%(c)(d) 1.58%(d) 1.21%(d) 1.30%(d) 1.53%(d) 1.35%
Ratio of Net
Investment Income
to Average
Net Assets 0.11%(c) 0.01% 0.39% 0.54% 0.72% 0.65%
Portfolio Turnover
Rate 156%(c) 192% 249% 392% 300% 123%
(a) Net Investment Income aggregated less than $0.01 on a per share basis for
the year ende October 31, 1998.
(b) Distributions in excess of net investment income for the years ended
October 31, 1998 and 1996, aggregated less than $0.01 on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representive of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
FINANCIAL SERVICES FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value --
Beginning
of Period $ 28.45 $29.14 $22.94 $18.95 $15.31 $20.28
=============================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.04 0.25 0.28 0.50 0.29 0.29
Net Gains or (Losses)
on Securities
(Both Realized and
Unrealized) 6.03 3.01 8.14 5.18 3.64 (0.66)
=============================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 6.07 3.26 8.42 5.68 3.93 (0.37)
=============================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.25 0.28 0.50 0.29 0.29
In Excess of Net
Investment Income 0.00 0.00 0.00 0.05 0.00 0.00
Distributions from
Capital Gains 2.24 3.70 1.94 1.14 0.00 4.31
=============================================================================================================
TOTAL DISTRIBUTIONS 2.24 3.95 2.22 1.69 0.29 4.60
=============================================================================================================
Net Asset Value--
End of Period $ 32.28 $28.45 $29.14 $22.94 $18.95 $15.31
=============================================================================================================
TOTAL RETURN 22.93%(a) 11.76% 39.80% 31.48% 25.80% (2.24%)
RATIOS
Net Assets --
End of Period
($000 Omitted) $1,516,079 $1,417,655 $1,113,255 $542,688 $410,048 $266,170
Ratio of Expenses
to Average
Net Assets 0.60%(a)(b) 1.05%(b) 0.99%(b) 1.11%(b) 1.26%(b) 1.18%
Ratio of Net
Investment
Income to
Average Net
Assets 0.13%(a) 0.85% 1.19% 2.48% 2.10% 1.66%
Portfolio
Turnover Rate 38%(a) 52% 96% 141% 171% 88%
(a) Based on operations for the period shown and, accordingly, are not
representive of a full year.
(b) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
GOLD FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1999 1998 1997(a) 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value --
Beginning
of Period $ 1.90 $3.21 $8.00 $5.21 $5.68 $ 6.23
================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss) (0.02) 0.01 (0.02) (0.01) 0.01 (0.02)
Net Gains or
(Losses) on
Securities
(Both Realized
and Unrealized) 0.18 (1.29) (2.62) 2.80 (0.47) (0.53)
================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 0.16 (1.28) (2.64) 2.79 (0.46) (0.55)
================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.00 0.01 0.00
In Excess of Net
Investment Income 0.00 0.03 2.15 0.00 0.00 0.00
================================================================================================================
TOTAL DISTRIBUTIONS 0.00 0.03 2.15 0.00 0.01 0.00
================================================================================================================
Net Asset Value-- End
of Period $ 2.06 $ 1.90 $ 3.21 $ 8.00 $ 5.21 $ 5.68
================================================================================================================
TOTAL RETURN 8.42%(b) (39.98%) (44.38%) 53.55% (8.12%) (8.83%)
RATIOS
Net Assets --
End of Period
($000 Omitted) $106,798 $107,249 $151,085 $277,892 $151,779 $271,163
Ratio of Expenses
to Average
Net Assets 1.09%(b)(c) 1.90%(c) 1.47%(c) 1.22%(c) 1.32%(c) 1.07%
Ratio of Net
Investment
Income (Loss)
to Average
Net Assets (0.81%)(b) (0.93%) (0.41%) (0.08%) 0.13% (0.32%)
Portfolio
Turnover Rate 80%(b) 133% 148% 155% 72% 97%
(a) The per share information was computed based on average shares.
(b) Based on operations for the period shown and, accordingly, are not
representive of a full year.
(c) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
HEALTH SCIENCES FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value
-- Beginning
of Period $ 62.12 $57.50 $55.24 $50.47 $35.09 $33.49
===============================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss) (0.01) 0.13 0.06 0.07 (0.03) (0.24)
Net Gains on
Securities
(Both Realized
and Unrealized) 4.54 13.55 10.85 8.78 15.41 1.84
===============================================================================
TOTAL FROM
INVESTMENT
OPERATIONS 4.53 13.68 10.91 8.85 15.38 1.60
===============================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment
Income(a) 0.00 0.25 0.06 0.07 0.00 0.00
Distributions from
Capital Gains 8.85 8.81 8.59 4.01 0.00 0.00
===============================================================================
TOTAL DISTRIBUTIONS 8.85 9.06 8.65 4.08 0.00 0.00
===============================================================================
Net Asset Value--
End of Period $57.80 $62.12 $57.50 $55.24 $50.47 $35.09
===============================================================================
TOTAL RETURN 7.28%(b) 28.58% 22.96% 17.99% 43.83% 4.78%
RATIOS
Net Assets --
End of Period
($000 Omitted) $1,565,703 $1,328,196 $944,498 $933,828 $860,926 $473,926
Ratio of
Expenses to
Average
Net Assets 0.59%(b)(c) 1.12%(c) 1.08%(c) 0.98%(c) 1.15%(c) 1.19%
Ratio of Net
Investment
Income (Loss)
to Average
Net Assets 0.01%(b) 0.25% 0.11% 0.11% (0.08%) (0.57%)
Portfolio Turnover
Rate 24%(b) 92% 143% 90% 107% 80%
(a) Distributions in excess of net investment income for the year ended October
31, 1998, aggregated less than $0.01 on a per share basis.
(b) Based on operations for the period shown and, accordingly, are not
representive of a full year.
(c) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
LEISURE FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value
-- Beginning
of Period $ 27.92 $27.21 $22.89 $23.78 $22.63 $ 25.47
===============================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss)(a) (0.09) 0.00 0.02 0.04 0.08 (0.01)
Net Gains or
(Losses)on
Securities
(Both Realized
and Unrealized) 11.90 3.69 4.96 2.25 2.06 (0.94)
===============================================================================
TOTAL FROM INVESTMENT
OPERATIONS 11.81 3.69 4.98 2.29 2.14 (0.95)
===============================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment
Income(b) 0.00 0.00 0.02 0.04 0.08 0.00
Distributions from
Capital Gains 1.91 2.98 0.64 2.25 0.91 1.89
In Excess of Capital
Gains 0.00 0.00 0.00 0.89 0.00 0.00
===============================================================================
TOTAL DISTRIBUTIONS 1.91 2.98 0.66 3.18 0.99 1.89
===============================================================================
Net Asset Value--
End of
Period $ 37.82 $27.92 $27.21 $22.89 $23.78 $22.63
===============================================================================
TOTAL RETURN 44.53%(c) 15.16% 22.32% 10.66% 9.98% (3.92%)
RATIOS
Net Assets --
End of Period
($000 Omitted) $364,456 $228,681 $216,616 $252,297 $265,181 $282,649
Ratio of Expenses
to Average
Net Assets 0.73%(c)(d) 1.41%(d) 1.41%(d) 1.30%(d) 1.29%(d) 1.17%
Ratio of Net
Investment
Income (Loss)
to Average
Net Assets (0.32%)(c) (0.09%) 0.05% 0.18% 0.31% 0.00%
Portfolio
Turnover Rate 17%(c) 31% 25% 56% 119% 116%
(a) Net Investment Income aggregated less than $0.01 on a per share basis
for the year ended October 31, 1998.
(b) Distributions in excess of net investment income for the years ended
October 31, 1998, 1997, 1996 and 1995, aggregated less than $0.01 on a per
share basis.
(c) Based on operations for the period shown and, accordingly, are not
representive of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any
expense offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
UTILITIES FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value
-- Beginning
of Period $ 14.73 $12.42 $12.04 $10.61 $9.76 $12.80
===============================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.09 0.30 0.32 0.37 0.44 0.33
Net Gains or (Losses)
on Securities
(Both Realized
and Unrealized) 2.68 2.56 1.25 1.43 0.84 (1.12)
===============================================================================
TOTAL FROM INVESTMENT
OPERATIONS 2.77 2.86 1.57 1.80 1.28 (0.79)
===============================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment
Income(a) 0.13 0.26 0.32 0.37 0.43 0.25
Distributions from
Capital Gains 0.21 0.29 0.87 0.00 0.00 2.00
===============================================================================
TOTAL DISTRIBUTIONS 0.34 0.55 1.19 0.37 0.43 2.25
===============================================================================
Net Asset Value--
End of Period $ 17.16 $14.73 $12.42 $12.04 $10.61 $9.76
===============================================================================
TOTAL RETURN 19.03%(b) 23.44% 14.37% 17.18% 13.48% (7.22%)
RATIOS
Net Assets --
End of Period
($000 Omitted) $196,568 $177,309 $132,423 $153,082 $134,468 $139,579
Ratio of Expenses
to Average
Net Assets(c) 0.62%(b)(d) 1.29%(d) 1.22%(d) 1.17%(d) 1.18%(d) 1.13%
Ratio of Net
Investment
Income to
Average Net
Assets(c) 0.53%(b) 1.82% 2.74% 3.28% 4.47% 3.33%
Portfolio
Turnover Rate 7%(b) 47% 55% 141% 185% 180%
(a) Distributions in excess of net investment income for the year ended October
31, 1996, aggregated less than $0.01 on a per share basis.
(b) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(c) Various expenses of the Fund were voluntarily absorbed by IFG for the
six months ended April 30, 1999 and the years ended October 31, 1998,
1997, 1996, 1995 and 1994. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 0.71%
(not annualized), 1.36%, 1.27%, 1.25%, 1.30% and 1.14% respectively, and
ratio of net investment income to average net assets would have been 0.44%
(not annualized), 1.75%, 2.69%, 3.20%, 4.34% and 3.32%, respectively.
(d) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
TECHNOLOGY FUND - CLASS I
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
APRIL 30
- -------------------------------------------------------------------------------
1999(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 33.85
===============================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.02)
Net Gains on Securities (Both Realized and Unrealized) 7.36
===============================================================================
TOTAL FROM INVESTMENT OPERATIONS 7.34
===============================================================================
Net Asset Value-- End of Period $ 41.19
===============================================================================
TOTAL RETURN 21.68% (b)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 364,744
Ratio of Expenses to Average Net Assets 0.24%(b)(c)
Ratio of Net Investment Income to Average Net
Assets (0.08%)(b)
Portfolio Turnover Rate 93% (b)
(a) From December 22, 1998, commencement of investment operations, to April 30,
1999.
(b) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(c) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
TECHNOLOGY FUND - CLASS II
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
UNAUDITED
PER SHARE DATA
Net Asset Value --
Beginning
of Period $ 28.07 $35.97 $34.23 $34.33 $24.94 $26.99
===============================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment
Income (Loss)(a) (0.14) 0.00 0.13 0.07 (0.02) (0.02)
Net Gains or (Losses)
on Securities
(Both Realized
and Unrealized) 13.18 (1.45) 6.23 5.76 10.20 1.19
===============================================================================
TOTAL FROM INVESTMENT
OPERATIONS 13.04 (1.45) 6.36 5.83 10.18 1.17
===============================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(b) 0.00 0.00 0.13 0.07 0.00 0.00
Distributions from
Capital Gains 0.00 3.16 4.49 5.86 0.79 3.22
In Excess of Capital
Gains 0.00 3.29 0.00 0.00 0.00 0.00
===============================================================================
TOTAL DISTRIBUTIONS 0.00 6.45 4.62 5.93 0.79 3.22
===============================================================================
Net Asset Value--
End of Period $ 41.11 $28.07 $35.97 $34.23 $34.33 $ 24.94
===============================================================================
TOTAL RETURN 46.46%(c) (2.47%) 20.71% 19.98% 42.19% 5.04%
RATIOS
Net Assets --
End of Period
($000 Omitted) $1,340,012 $1,008,771 $1,039,968 $789,611 $563,109 $327,260
Ratio of Expenses
to Average
Net Assets 0.61%(c)(d) 1.17%(d) 1.05%(d) 1.08%(d) 1.12%(d) 1.17%
Ratio of Net
Investment Income
(Loss) to Average
Net Assets (0.37%)(c) (0.49%) 0.41% 0.24% (0.06%) (0.55%)
Portfolio
Turnover Rate 93%(c) 178% 237% 168% 191% 145%
(a) Net Investment Income aggregated less than $0.01 on a per share basis for
the year ended October 31, 1998.
(b) Distributions in excess of net investment income for the years ended
October 31, 1998 and 1996, aggregated less than $0.01 on a per share basis.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
OTHER INFORMATION
UNAUDITED
On May 20, 1999, a special meeting of the shareholders of each Fund was held at
which the ten directors identified below were elected. The selection of
PricewaterhouseCoopers LLP as independent accountants (Proposal 1) and the
approval of changes to the fundamental investment restrictions identified below
(Proposal 2) were ratified. The following is a report of the votes cast:
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
ENERGY FUND
Charles W. Brady 6,147,431 0 282,142 6,429,573
Fred A. Deering 6,152,488 0 277,085 6,429,573
Mark H. Williamson 6,149,637 0 279,936 6,429,573
Dr. Victor L. Andrews 6,156,206 0 273,367 6,429,573
Bob R. Baker 6,158,940 0 270,633 6,429,573
Lawrence H. Budner 6,161,537 0 268,036 6,429,573
Dr. Wendy Lee Gramm 6,162,899 0 266,674 6,429,573
Kenneth T. King 6,159,441 0 270,132 6,429,573
John W. McIntyre 6,160,293 0 269,280 6,429,573
Dr. Larry Soll 6,164,803 0 264,770 6,429,573
Proposal 1 6,165,581 63,955 200,036 6,429,572
Proposal 2
Modification of
Fundamental
Investment
Restrictions on:
a -- The issuance of
senior securities 4,354,682 277,392 1,797,499 6,429,573
b --Borrowing and
adoption of non-
fundamental
restriction on
borrowing 4,354,383 277,691 1,797,499 6,429,573
c --Investing in
commodities and
elimination of
fundamental
restriction and
adoption of non-
fundamental restriction
for Gold Fund on
investing in gold
bullion 4,354,637 277,437 1,797,499 6,429,573
d --Real estate
investments 4,354,855 277,219 1,797,499 6,429,573
e --Investing in
another
investment
company 4,350,825 281,249 1,797,499 6,429,573
f --Underwriting
securities 4,354,829 277,245 1,797,499 6,429,573
g --Loans 4,354,482 277,592 1,797,499 6,429,573
h --Issuer
diversification 4,354,771 277,303 1,797,499 6,429,573
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
ENERGY FUND (CONTINUED)
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 4,349,901 282,173 1,797,499 6,429,573
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 4,354,393 277,681 1,797,499 6,429,573
k --Investing in companies
for the purpose of
exercising control or
management 4,354,771 277,303 1,797,499 6,429,573
l -- Fund ownership of
securities also owned
by directors and officers
of each Fund or its
investment advisor 4,354,174 277,900 1,797,499 6,429,573
m --Investing in newly
formed issuers 4,354,472 277,602 1,797,499 6,429,573
FINANCIAL SERVICES FUND
Charles W. Brady 24,644,907 0 905,004 25,549,911
Fred A. Deering 24,651,832 0 898,079 25,549,911
Mark H. Williamson 24,646,480 0 903,431 25,549,911
Dr. Victor L. Andrews 24,663,374 0 886,537 25,549,911
Bob R. Baker 24,667,593 0 882,318 25,549,911
Lawrence H. Budner 24,666,805 0 883,106 25,549,911
Dr. Wendy Lee Gramm 24,669,663 0 880,248 25,549,911
Kenneth T. King 24,664,895 0 885,016 25,549,911
John W. McIntyre 24,669,021 0 880,890 25,549,911
Dr. Larry Soll 24,670,186 0 879,725 25,549,911
Proposal 1 24,487,009 293,171 769,730 25,549,910
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of senior
securities 17,692,330 1,283,259 6,574,322 25,549,911
b --Borrowing and adoption
of non-fundamental
restriction on borrowing 17,660,957 1,314,632 6,574,322 25,549,911
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
Financial Services Fund (continued)
c -- Investing in commodities and
elimination of fundamental
restriction and adoption of non-
fundamental restriction for
Gold Fund on investing in
gold bullion 17,678,695 1,296,894 6,574,322 25,549,911
d --Real estate investments 17,685,086 1,290,503 6,574,322 25,549,911
e --Investing in another
investment company 17,670,338 1,305,251 6,574,322 25,549,911
f --Underwriting securities 17,691,202 1,284,387 6,574,322 25,549,911
g --Loans 17,670,165 1,305,424 6,574,322 25,549,911
h --Issuer diversification 17,687,930 1,287,659 6,574,322 25,549,911
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 17,667,930 1,307,659 6,574,322 25,549,911
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 17,661,980 1,313,609 6,574,322 25,549,911
k --Investing in companies
for the purpose of
exercising control
or management 17,669,893 1,305,696 6,574,322 25,549,911
l -- Fund ownership of
securities also owned by
directors and officers
of each Fund or its
investment advisor 17,676,520 1,299,069 6,574,322 25,549,911
m -- Investing in newly
formed issuers 17,673,319 1,302,270 6,574,322 25,549,911
GOLD FUND
Charles W. Brady 26,919,570 0 1,393,283 28,312,853
Fred A. Deering 26,900,787 0 1,412,066 28,312,853
Mark H. Williamson 26,903,515 0 1,409,338 28,312,853
Dr. Victor L. Andrews 26,934,698 0 1,378,155 28,312,853
Bob R. Baker 26,980,991 0 1,331,862 28,312,853
Lawrence H. Budner 26,949,417 0 1,363,436 28,312,853
Dr. Wendy Lee Gramm 26,946,090 0 1,366,763 28,312,853
Kenneth T. King 26,944,503 0 1,368,350 28,312,853
John W. McIntyre 26,973,460 0 1,339,393 28,312,853
Dr. Larry Soll 26,992,468 0 1,320,385 28,312,853
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
GOLD FUND (CONTINUED)
Proposal 1 27,041,557 566,566 704,728 28,312,851
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of senior
securities 20,831,132 1,624,614 5,857,107 28,312,853
b --Borrowing and adoption
of non-fundamental
restriction on borrowing 20,825,910 1,629,836 5,857,107 28,312,853
c --Investing in commodities
and elimination of
fundamental restriction
and adoption of non-
fundamental restriction for
Gold Fund on investing in
gold bullion 20,831,132 1,624,614 5,857,107 28,312,853
d --Real estate investments 20,831,132 1,624,614 5,857,107 28,312,853
e --Investing in another
investment company 20,829,746 1,626,000 5,857,107 28,312,853
f --Underwriting securities 20,830,964 1,624,782 5,857,107 28,312,853
g --Loans 20,828,098 1,627,648 5,857,107 28,312,853
h --Issuer diversification 20,828,098 1,627,648 5,857,107 28,312,853
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 20,826,830 1,628,916 5,857,107 28,312,853
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 20,829,357 1,626,389 5,857,107 28,312,853
k --Investing in companies
for the purpose of
exercising
control or management 20,829,290 1,626,456 5,857,107 28,312,853
l -- Fund ownership of
securities
also owned by directors
and officers of each
Fund or its investment
advisor 20,829,074 1,626,672 5,857,107 28,312,853
m -- Investing in newly
formed issuers 20,827,810 1,627,936 5,857,107 28,312,853
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
HEALTH SCIENCES FUND
Charles W. Brady 13,475,405 0 546,761 14,022,166
Fred A. Deering 13,489,012 0 533,154 14,022,166
Mark H. Williamson 13,478,657 0 543,509 14,022,166
Dr. Victor L. Andrews 13,496,895 0 525,271 14,022,166
Bob R. Baker 13,506,998 0 515,168 14,022,166
Lawrence H. Budner 13,509,413 0 512,753 14,022,166
Dr. Wendy Lee Gramm 13,505,430 0 516,736 14,022,166
Kenneth T. King 13,486,105 0 536,061 14,022,166
John W. McIntyre 13,503,247 0 518,919 14,022,166
Dr. Larry Soll 13,511,155 0 511,011 14,022,166
Proposal 1 13,417,559 172,850 431,756 14,022,165
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of
senior securities 10,033,069 777,189 3,211,908 14,022,166
b --Borrowing and adoption
of non-fundamental
restriction on borrowing 10,019,183 791,075 3,211,908 14,022,166
c --Investing in commodities
and elimination of
fundamental restriction
and adoption of non-
fundamental restriction
for Gold Fund on
investing in
gold bullion 10,026,938 783,320 3,211,908 14,022,166
d --Real estate
investments 10,032,074 778,184 3,211,908 14,022,166
e --Investing in another
investment company 10,025,797 784,461 3,211,908 14,022,166
f --Underwriting
securities 10,029,772 780,486 3,211,908 14,022,166
g --Loans 10,023,408 786,850 3,211,908 14,022,166
h --Issuer diversification 10,029,819 780,439 3,211,908 14,022,166
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and
adoption of non-
fundamental restriction
on investing in illiquid
securities 10,020,933 789,325 3,211,908 14,022,166
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 10,019,741 790,517 3,211,908 14,022,166
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
HEALTH SCIENCES FUND (CONTINUED)
k -- Investing in companies
for the purpose of
exercising control
or management 10,029,162 781,096 3,211,908 14,022,166
l -- Fund ownership of
securities also owned
by directors and
officers of each Fund
or its investment
advisor 10,027,160 783,098 3,211,908 14,022,166
m --Investing in newly
formed issuers 10,026,667 783,591 3,211,908 14,022,166
LEISURE FUND
Charles W. Brady 4,552,868 0 233,758 4,786,626
Fred A. Deering 4,561,277 0 225,349 4,786,626
Mark H. Williamson 4,552,495 0 234,131 4,786,626
Dr. Victor L. Andrews 4,562,502 0 224,124 4,786,626
Bob R. Baker 4,565,355 0 221,271 4,786,626
Lawrence H. Budner 4,566,108 0 220,518 4,786,626
Dr. Wendy Lee Gramm 4,567,671 0 218,955 4,786,626
Kenneth T. King 4,558,057 0 228,569 4,786,626
John W. McIntyre 4,563,567 0 223,059 4,786,626
Dr. Larry Soll 4,566,032 0 220,594 4,786,626
Proposal 1 4,514,091 66,236 206,298 4,786,625
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of
senior securities 3,666,936 318,268 801,422 4,786,626
b --Borrowing and
adoption of non-
fundamental
restriction on
borrowing 3,663,826 321,378 801,422 4,786,626
c --Investing in
commodities and
elimination of
fundamental restriction
and adoption of non-
fundamental restriction
for Gold Fund on
investing in gold
bullion 3,665,205 319,999 801,422 4,786,626
d --Real estate
investments 3,666,310 318,894 801,422 4,786,626
e --Investing in another
investment company 3,665,352 319,852 801,422 4,786,626
f --Underwriting
securities 3,666,200 319,004 801,422 4,786,626
g --Loans 3,664,515 320,689 801,422 4,786,626
h --Issuer diversification 3,666,045 319,159 801,422 4,786,626
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
LEISURE FUND (CONTINUED)
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 3,664,490 320,714 801,422 4,786,626
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 3,664,826 320,378 801,422 4,786,626
k --Investing in companies
for the purpose of
exercising control
or management 3,663,983 321,221 801,422 4,786,626
l -- Fund ownership of
securities also owned
by directors and officers
of each Fund or its
investment advisor 3,662,432 322,772 801,422 4,786,626
m --Investing in newly
formed issuers 3,665,068 320,136 801,422 4,786,626
UTILITIES FUND
Charles W. Brady 5,841,976 0 254,181 6,096,157
Fred A. Deering 5,854,575 0 241,582 6,096,157
Mark H. Williamson 5,842,862 0 253,295 6,096,157
Dr. Victor L. Andrews 5,862,423 0 233,734 6,096,157
Bob R. Baker 5,864,954 0 231,203 6,096,157
Lawrence H. Budner 5,870,657 0 225,500 6,096,157
Dr. Wendy Lee Gramm 5,863,598 0 232,559 6,096,157
Kenneth T. King 5,859,312 0 236,845 6,096,157
John W. McIntyre 5,870,234 0 225,923 6,096,157
Dr. Larry Soll 5,875,264 0 220,893 6,096,157
Proposal 1 5,817,893 78,005 200,259 6,096,157
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of senior
securities 4,814,543 381,840 899,774 6,096,157
b --Borrowing and adoption
of non-fundamental
restriction on borrowing 4,804,399 391,984 899,774 6,096,157
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
UTILITIES FUND (CONTINUED)
c -- Investing in commodities
and elimination of fundamental
restriction and adoption of
non-fundamental restriction
for Gold Fund on investing
in gold bullion 4,811,713 384,670 899,774 6,096,157
d --Real estate investments 4,814,543 381,840 899,774 6,096,157
e --Investing in another
investment company 4,813,429 382,954 899,774 6,096,157
f --Underwriting securities 4,814,119 382,264 899,774 6,096,157
g --Loans 4,809,912 386,471 899,774 6,096,157
h --Issuer diversification 4,810,872 385,511 899,774 6,096,157
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 4,807,221 389,162 899,774 6,096,157
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 4,804,565 391,818 899,774 6,096,157
k --Investing in companies
for the purpose of
exercising control
or management 4,813,516 382,867 899,774 6,096,157
l -- Fund ownership of
securities also owned by
directors and officers
of each Fund or its
investment advisor 4,806,428 389,955 899,774 6,096,157
m --Investing in newly formed
issuers 4,805,526 390,857 899,774 6,096,157
TECHNOLOGY FUND -- CLASS I
Charles W. Brady 6,484,233 0 0 6,484,233
Fred A. Deering 6,484,233 0 0 6,484,233
Mark H. Williamson 6,484,233 0 0 6,484,233
Dr. Victor L. Andrews 6,484,233 0 0 6,484,233
Bob R. Baker 6,484,233 0 0 6,484,233
Lawrence H. Budner 6,484,233 0 0 6,484,233
Dr. Wendy Lee Gramm 6,484,233 0 0 6,484,233
Kenneth T. King 6,484,233 0 0 6,484,233
John W. McIntyre 6,484,233 0 0 6,484,233
Dr. Larry Soll 6,484,233 0 0 6,484,233
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
TECHNOLOGY FUND -- CLASS I (CONTINUED)
Proposal 1 6,484,233 0 0 6,484,233
Proposal 2 6,484,233 0 0 6,484,233
Modification of Fundamental
Investment Restrictions on:
a -- Investing in another
investment company 6,484,233 0 0 6,484,233
Elimination of Fundamental
Investment Restrictions on:
b --Industry concentration 6,484,233 0 0 6,484,233
TECHNOLOGY FUND -- CLASS II
Charles W. Brady 15,379,851 0 642,547 16,022,398
Fred A. Deering 15,374,672 0 647,726 16,022,398
Mark H. Williamson 15,385,515 0 636,883 16,022,398
Dr. Victor L. Andrews 15,392,732 0 629,666 16,022,398
Bob R. Baker 15,414,118 0 608,280 16,022,398
Lawrence H. Budner 15,405,559 0 616,839 16,022,398
Dr. Wendy Lee Gramm 15,406,727 0 615,671 16,022,398
Kenneth T. King 15,390,641 0 631,757 16,022,398
John W. McIntyre 15,408,741 0 613,657 16,022,398
Dr. Larry Soll 15,421,269 0 601,129 16,022,398
Proposal 1 15,277,291 186,708 558,398 16,022,397
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a -- The issuance of senior
securities 11,674,520 810,924 3,536,954 16,022,398
b --Borrowing and adoption
of non-fundamental
restriction on borrowing 11,660,224 825,220 3,536,954 16,022,398
c --Investing in commodities
and elimination of
fundamental restriction
and adoption of non-
fundamental restriction
for Gold Fund on
investing in
gold bullion 11,664,045 821,399 3,536,954 16,022,398
d --Real estate investments 11,665,743 819,701 3,536,954 16,022,398
e --Investing in another
investment company 11,662,229 823,215 3,536,954 16,022,398
f --Underwriting securities 11,674,048 811,396 3,536,954 16,022,398
g --Loans 11,663,399 822,045 3,536,954 16,022,398
h --Issuer diversification 11,674,471 810,973 3,536,954 16,022,398
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- -------------------------------------------------------------------------------
TECHNOLOGY FUND - CLASS II (CONTINUED)
Elimination of Fundamental
Investment Restrictions on:
i -- Purchasing restricted
securities and adoption of
non-fundamental restriction
on investing in illiquid
securities 11,665,913 819,531 3,536,954 16,022,398
j -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 11,659,676 825,768 3,536,954 16,022,398
k --Investing in companies
for the purpose of
exercising control or
management 11,659,761 825,683 3,536,954 16,022,398
l -- Fund ownership of
securities also owned by
directors and officers
of each Fund or its
investment advisor 11,661,603 823,841 3,536,954 16,022,398
m --Investing in newly
formed issuers 11,611,948 823,496 3,536,954 16,022,398
n --Industry concentration 11,664,760 820,684 3,536,954 16,022,398
<PAGE>
YEAR 2000 COMPUTER ISSUE.
Many computer systems in use today may not be able to recognize any date after
December 31, 1999. If these systems are not fixed by that date, it is possible
that they could generate erroneous information or fail altogether. INVESCO has
committed substantial resources in an effort to make sure that its own major
computer systems will continue to function on and after January 1, 2000. Of
course, INVESCO cannot fix systems that are beyond its control. If INVESCO's
own systems, or the systems of third parties upon which it relies, do not
perform properly after December 31, 1999, the Funds could be adversely affected.
In addition, the markets for, or values of, securities in which the Funds invest
may possibly be hurt by computer failures affecting portfolio investments or
trading of securities beginning January 1, 2000. For example, improperly
functioning computer systems could result in securities trade settlement
problems and liquidity issues, production issues for individual companies and
overall economic uncertainties. Individual issuers may incur increased costs
in making their own systems
Year 2000 compliant. The combination of market uncertainty and increased costs
means that there is a possibility that Year 2000 computer issues may adversely
affect the Funds' investments. At this time, it is generally believed that
foreign issuers, particularly those in emerging and other markets, may be more
vulnerable to Year 2000 problems than will be issuers in the U.S.
<PAGE>
FAMILY OF FUNDS
NEWSPAPER
FUND NAME FUND CODE TICKER SYMBOL ABBREVIATION
- --------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- --------------------------------------------------------------------------------
SECTOR
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology-Class II 55 FTCHX Tech
Utilities 58 FSTUX Util
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
STOCK
Growth & Income 21 IVGIX Gro&Inc
INVESCO Endeavor 61 IVENX Endeavor
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund - Class II 23 ISPIX SP500II
- --------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Industrial Income 15 FIIIX IndInc
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
BOND
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
- --------------------------------------------------------------------------------
TAX-EXEMPT
Tax-Free 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
Money Market Reserve 96 IMRXX INVESCOMMR
Tax-Exempt Reserve 95 ITTXX INVESCOTTE
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES
AND EXPENSES, PLEASE CALL US AT 1-800-525-8085 FOR A PROSPECTUS. READ IT
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
[INVESCO ICON]
INVESCO
YOU SHOULD
KNOW WHAT
INVESCO KNOWS (TM)
WE'RE EASY TO STAY IN TOUCH WITH:
Investor Services: 1-800-525-8085
PAL,(R) your Personal Account Line: 1-800-424-8085
On the World Wide Web: www.invesco.com
In Denver, visit one of our convenient Investor Centers:
Cherry Creek, 3003 East Third Avenue, Suite 1
Denver Tech Center, 7800 East Union Avenue, Lobby Level
INVESCO Distributors, Inc., (SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied
by a current prospectus.
SSEC 9009 6/99
