KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
- --------------------------------------------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS (TM)
- --------------------------------------------------------------------------------
INVESCO SECTOR FUNDS, INC.
ENERGY
FINANCIAL SERVICES
GOLD
HEALTH SCIENCES
LEISURE
REAL ESTATE OPPORTUNITY
TECHNOLOGY
TELECOMMUNICATIONS
UTILITIES
ANNUAL
ANNUAL REPORT | March 31, 2000 [INVESCO ICON] INVESCO FUNDS.
<PAGE>
"The remarkable performance of the Telecommunications Fund has been driven by
many different types of communications stocks, but telecommunications equipment
makers have been particularly strong performers." Page 11
The line graphs below and on the next page illustrate the value of a $10,000
investment, plus reinvested dividends and capital gain distributions, for the
10-year or since inception period ended 3/31/00. The charts and other total
return figures cited reflect the funds' operating expenses, but the indexes do
not have expenses, which would, of course, have lowered their performance. (Of
course, past performance is no guarantee of future results.)(1),(2)
TOTAL RETURN - INVESTOR CLASS
PERIODS ENDED 3/31/2000(1)
<TABLE>
<CAPTION>
Manager's
Cumulative 10 years* Report
FUND (INCEPTION DATE) 6 months 1 year 5 years* or Since Inception Page #
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ENERGY 19.75% 3.17% 19.09% 6.99% 4
- ------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 15.42% (0.84%) 23.40% 22.26% 5
- ------------------------------------------------------------------------------------------------
GOLD (23.81%) (13.51%) (14.15%) (8.86%) 6
- ------------------------------------------------------------------------------------------------
HEALTH SCIENCES 12.80% 1.04% 22.08% 19.53% 7
- ------------------------------------------------------------------------------------------------
LEISURE 24.33% 45.07% 26.04% 22.74% 8
- ------------------------------------------------------------------------------------------------
REAL ESTATE OPPORTUNITY (1/97) 3.88% 4.28% N/A (2.88%) 9
- ------------------------------------------------------------------------------------------------
TECHNOLOGY-INVESTOR CLASS 110.39% 169.09% 48.00% 34.53% 10
- ------------------------------------------------------------------------------------------------
TECHNOLOGY-INSTITUTIONAL CLASS
(12/98) 110.73% 170.27% N/A 221.29% 10
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (8/94) 102.37% 137.20% 51.39% 46.63% 11
- ------------------------------------------------------------------------------------------------
UTILITIES 28.76% 35.87% 23.63% 16.34% 12
- ------------------------------------------------------------------------------------------------
*AVERAGE ANNUALIZED
Graph: Energy Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Energy Fund - Investor Class 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 March 31, 2000.
Graph: Financial Services Fund - Investor Class
10-Year Total Return vs. S&P 500 Index and S&P Financial Index
This line graph compares the value of a $10,000 investment in
INVESCO Financial Services Fund - Investor Class to the value of a
$10,000 investment in the S&P 500 Index and the value of a $10,000
investment in the S&P Financial Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the ten year period ended March 31, 2000.
<PAGE>
Graph: Gold Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Gold Fund - Investor Class 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 March 31, 2000.
Graph: Health Sciences Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Health Sciences Fund - Investor Class 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 March 31, 2000.
Graph: Leisure Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Leisure Fund - Investor Class 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 March 31, 2000.
Graph: Real Estate Opportunity Fund - Investor Class
since inception (1/97) Total Return vs. S&P 500 Index and
NAREIT - Equity REIT Index
This line graph compares the value of a $10,000 investment in
INVESCO Real Estate Opportunity Fund - Investor Class to the value
of a $10,000 investment in the S&P 500 Index and the value of a
$10,000 investment in the NAREIT Equity REIT Index, assuming in each
case reinvestment of all dividends and capital gain distributions,
for the period since inception (1/97) through March 31, 2000.
Graph: Technology Fund - Investor Class
10-Year Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Technology Fund - Investor Class 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 March 31, 2000.
Graph: Technology Fund - Institutional Class
since inception (12/98) Total Return vs. S&P 500 Index
This line graph compares the value of a $10,000 investment in
INVESCO Technology Fund - Institutional Class 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 March 31, 2000.
Graph: Telecommunications Fund - Investor Class
since inception (8/94) Total Return vs. S&P 500 Index and
MSCI--EAFE Index
This line graph compares the value of a $10,000 investment in
INVESCO Telecommunications Fund - Investor Class to the value of a
$10,000 investment in the S&P 500 Index and the value of a $10,000
investment in the MSCI - EAFE Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the period since inception (8/94) through March 31, 2000.
Graph: Utilities Fund - Investor Class
10-Year Total Return vs. S&P 500 Index and S&P Utilties Index
This line graph compares the value of a $10,000 investment in
INVESCO Utilities Fund - Investor Class to the value of a $10,000
investment in the S&P 500 Index and the value of a $10,000
investment in the S&P Utilities Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the ten year period ended March 31, 2000.
- --------------------------------------------------------------------------------
BECAUSE THE INCEPTION OF CLASS C SHARES FOR INVESCO SECTOR FUNDS TOOK PLACE
SHORTLY BEFORE THE REPORTING PERIOD, WE ARE NOT INCLUDING PERFORMANCE FIGURES
FOR THIS CLASS OF SHARES. FUTURE REPORTS WILL INCLUDE SEPARATE PERFORMANCE
FIGURES FOR CLASS C SHARES.
<PAGE>
ENERGY FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The past six months have seen strong performance from our fund, on both an
absolute basis and relative to other energy funds. Clearly, the marked rise in
energy prices has helped our performance -- as it certainly has boosted the
profits of the companies in which we invest. But stocks in our portfolio have
also thrived as investors have realized that energy companies are entering a new
production cycle -- one that should allow for substantial profits even should
oil and gas prices stabilize.
For the six months ended March 31, 2000, the value of Investor Class shares rose
19.75%, with all of this gain coming in the last three months. This gain
exceeded that of the S&P 500 Index, which rose 17.50% over the same period. (Of
course, past performance is not a guarantee of future results.)(1),(2)
While many have focused on the role of the Organization of Petroleum Exporting
Companies, or OPEC, in the recent oil price rise, more fundamental factors are
at work. If all of OPEC's wells were put to work alongside every other well in
the world, global production would only slightly exceed demand. Meanwhile,
energy demand continues to increase at roughly 2.4% per year as the global
economy grows. To meet this increased demand, oil companies are preparing to
enter a multi-year investment cycle. The sector may well take on the
characteristics of a growth sector as a result.
For natural gas companies, the picture may be even more compelling. Natural gas
demand in North America is up 50% over the last 10 years, driven largely by the
installation of gas-fired electric power plants. Already extremely high, natural
gas prices are likely to spike this summer as new power plants come on line. The
result should be higher profits for owners of reserves and healthy opportunities
for exploration firms.
Given the favorable growth conditions we expect, our challenge will be to find
those companies best positioned to exploit them. We believe one such firm is
Apache Corp., which operates oil or gas fields on five continents. A
well-managed firm, Apache has shown its ability to grow rapidly, even as energy
prices languished in the late 1990s. Apache has proved particularly adept at
buying reserves and then developing means of drawing out more oil and gas than
previously thought possible.
As the oil firms seek to ramp up production, exploration and service companies
appear perfectly poised to benefit. One of our favorite holdings is Nabors
Industries, the largest land driller in the world. Nabors claims a full 65% of
the rigs that can drill deeper than 15,000 feet -- a depth that producers seem
likely to go to meet the world's demand.
The past few years have demonstrated that the energy sector has a relatively low
correlation to the broader market. As technology, telecommunications, and other
high-growth stocks have rocketed upward in the last couple of years, of course,
this disconnect has not been to energy investors' advantage. But given the
factors mentioned above, we are optimistic for oil stocks, even should the rest
of the market retreat or consolidate its gains.
Investors should recognize that even the combination of cheap stocks and
favorable growth prospects for the sector cannot assure future performance.
Another substantial downturn in the world economy could also postpone the
investment and exploration cycle we have described. Still, we are optimistic
about our portfolio's positioning, and we hope to report further good news to
you in future reports.
/s/ John S. Segner
John S. Segner
Vice Presient
<PAGE>
FINANCIAL SERVICES FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The past six months have been challenging for financial services stocks, which
were hindered by both the threat of higher interest rates and investors'
fixation on high-flying technology shares.
This trend eased in March, however, as a broad rotation into more defensive
sectors led investors to take notice of the tremendous values available in the
financial services sector. Many of our financial services shares surged ahead in
March, but still ended the period at historically low valuations that remain out
of line with business fundamentals.
For the six-month period ended March 31, 2000, the value of Investor Class
shares rose 15.42%. Because of the pressure on financial services stocks, this
performance lagged the S&P 500 Index, which gained 17.50% over the same period.
However, our returns outpaced the S&P Financial Index, which increased 11.17%.
(Of course, past performance is no guarantee of future results.)(1),(2)
Investment banking and brokerage companies led the sector, supported by soaring
equity values and trading volumes. U.S. brokerage firms are also finding fertile
ground for new business in Europe, where investors are coming around to the
value of stock investing. On the downside, higher interest rates, overcapacity
and price competition have made a challenging environment for banks and
insurance providers. These stocks have also been pressured by news of earnings
shortfalls and post-merger cultural tensions at several high-profile banks.
The fund continues to focus on top-quality financial services companies that
combine proven management teams, solid fundamentals and strong earnings growth
potential. In particular, we have emphasized companies that are exploiting
deregulation and new technology to lower their cost structures and expand into
new business lines. For example, the Internet has enabled firms to cross-sell
products and expand their customer base with little incremental cost. As we have
emphasized before, we feel the companies best qualified to dominate this space
are established financial services powerhouses that benefit from a trusted brand
name, experienced management and a solid funding base.
One company we believe to be poised for dominance is Citigroup Inc., one of our
best-performing holdings during the period. Citigroup combines its leadership in
corporate and consumer banking with a top brokerage franchise under the Salomon
Smith Barney name. It is also expanding its insurance business through the
acquisition of the remaining portion of Travelers Property Casualty it doesn't
already own. Now its e-Citi site, a leading full-service provider of online
capabilities, provides it with additional opportunities to leverage these other
businesses while establishing itself as a portal for Internet commerce and
communications.
We are encouraged by the recent improvement in financial services shares. While
the prospect of higher interest rates could weigh on share prices in the
near-term, we believe investors will ultimately come around to the strong
fundamentals and low valuations offered by financial services companies. As we
go forward, we will maintain our focus on market leaders -- fast-growing
companies that can attract top talent, invest in the latest technology, and
extend their market leadership. We believe that as investors return to the
financial services sector, these companies are poised for strong performance.
/s/ Jeffrey G. Morris
Jeffrey G. Morris
Vice President
<PAGE>
GOLD FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The past six months have been challenging for gold investors, and the fund once
again recorded a loss. The slump in gold stocks masks relatively positive
fundamentals in the market for gold bullion. For one thing, the gap between
rising gold demand and modest mining production continues to widen, providing
support for prices. Also, last September, European central banks agreed to
publicly outline their selling plans for the next five years. This development
promises to improve the efficiency and stability of the gold bullion market,
since uncertainty over the timing of central bank gold sales has been a major
source of volatility. We believe that greater transparency in central bank
transactions will also support rising gold prices as demand continues to exceed
supply.
Unfortunately, while these developments have benefited gold prices, they have
done little to help the short-term performance of gold stocks, which continued
to languish during the period, hindering our performance.
For the six-month period ended March 31, 2000, the value of Investor Class
shares declined 23.81%. This performance contrasts with strong results from the
S&P 500 Index, which gained 17.50% over the same period. (Of course, past
performance is no guarantee of future results.)(1),(2)
We responded to the growing disconnect between gold prices and the performance
of gold stocks by selling many of our small-capitalization equity holdings while
adding to our weighting in gold bullion itself. Gold bullion now represents the
largest position in the fund, and this heavy weighting helped insulate our
performance from the weakness in gold stocks. This is not to say that all of our
equity positions worked against us, and we benefited from gains in several
small-cap companies. One standout was Pacific Rim Mining, a gold mining company
that has announced promising findings from drilling in Peru.
While gold stocks are inexpensive relative to historical valuations and the
current level of gold prices, we have yet to see a catalyst -- such as higher
inflation-- that might drive them higher. Consequently, we remain overweight in
gold bullion, a strategy that we believe offers the best opportunity to
capitalize on firming gold prices. We have also maintained a relatively large
cash position, which will help cushion performance while providing us with the
liquidity to respond to changing market conditions.
We would also like to take this opportunity to assure our investors that, while
gold has been out of vogue in recent years, the market is far from obsolete.
Gold has served as the principal store of value for centuries, and we believe it
can continue to provide an important diversification tool, especially during
periods of rising inflation or volatile equity markets. In particular, our
current emphasis on bullion may be particularly attractive to investors who want
the benefits of owning gold but who don't want to incur the high costs and
logistical challenges associated with buying bullion directly.
/s/ John S. Segner
John S. Segner
Vice President
<PAGE>
HEALTH SCIENCES FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The past six months have been a roller coaster ride for health sciences stocks
as the long-term earnings potential tied to industry consolidation and new drug
development has been clouded by concerns over valuations, Medicare regulations
and slowing pipeline introductions. Adding to these pressures, the FDA has
become increasingly cautious in its drug reviews, delaying several high-profile
drug launches from concern over negative side effects. Biotech shares have been
at the eye of this maelstrom. These stocks surged in the first few months of
2000 after captivating investors' imaginations with the promise of genomics
research, which may be used to target specific treatments more efficiently. This
rally was cut short in March, however, after a flood of new biotech issues dried
up market liquidity and pressured valuations. Also weighing on biotech shares
was President Clinton's stated opposition to granting patent protection to
genetic discoveries.
During this challenging period, we benefited from our decision to boost our
biotech weighting late in 1999, which enabled us to participate in the February
rally. Because we felt that the sharp run-up in share prices left us
overweighted in the biotech area, we subsequently began trimming our exposure.
Unfortunately, we did not scale back our positions fast enough to escape the
March sell-off in biotech shares, which hurt our first quarter results relative
to the S&P 500 Index.
For the six-month period ended March 31, 2000, the value of Investor Class
shares rose 12.80%. This return lagged that of the S&P 500 Index, which
increased by 17.50% over the same period. (Of course, past performance is no
guarantee of future results.)(1),(2)
Volatility can be harrowing, but it can also work in our favor. Challenging
periods such as these often allow us to add to our favorite names when they are
trading at attractively low valuations. For this reason, we have increased our
cash balance, which leaves us with "dry powder" to put to work as opportunities
arise.
As we look to reinvest this cash, we will focus on fundamentally strong
companies with good management, solid capital structures, and a promising mix of
marketable drugs and late-stage product development. Our near-term emphasis is
on the stability provided by traditional, high-quality pharmaceutical companies,
as we work to raise our pharmaceutical exposure to a market-neutral position. We
are also upbeat on the recent consolidation in the drug industry, particularly
the merger between Warner-Lambert Co. and Pfizer Inc., two of our holdings,
which will form a research and marketing powerhouse.
While we believe the recent sell-off in biotech shares was overstated, we will
continue to approach this area with caution. We will avoid genome research
plays, which we believe may take years to pay off with marketable compounds.
Instead, we have focused on fundamentally strong biotech companies, such as
Genentech Inc., which already have commercial products that support revenue and
earnings growth.
Additionally, we have raised our weighting in medical device companies,
including Medtronic Inc. and Guidant Corp., to take advantage of firming demand
for defibrillators used to treat congenital heart failure. At the same time, we
remain underweighted in the health care services industry due to our concerns
over potential Medicare reform. We believe this focus will help us benefit from
the long-term growth potential in the health sciences sector, while insulating
our performance from short-term volatility.
/s/ John Schroer
John Schroer
Senior Vice President
<PAGE>
LEISURE FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The last six months have been a very rewarding period for our fund. Overall, the
markets remained quite strong, although leadership moved dramatically between
New Economy growth stocks and more traditional names. Our portfolio has
traditionally owned a mixture of Old and New Economy stocks because of our
unique focus on the leisure sector. As a result, we have experienced both sides
of these movements, making us optimistic that we are well prepared for whichever
direction the market heads next.
For the six-month period ended March 31, 2000, the value of Investor Class
shares rose 24.33%. This return exceeded that of the S&P 500 Index, which rose
17.50% over the same period. (Of course, past performance does not guarantee
future results.)(1),(2)
In many ways, the distinction between Old and New economy stocks makes little
sense within the context of the leisure sector. As we have explained in past
reports, our approach is based on the fact that leisure activities represent a
steadily growing part of the economy. In one sense, of course, we believe this
makes leisure one of the true growth areas of the economy, alongside sectors
such as technology and telecommunications. However, there is little of the
fast-paced change and rocketing startups that characterize these other sectors.
The growth trends we have identified have been unfolding over the past 30 years
or more.
One advantage this gives our fund is that it allows us to turn over our stocks
relatively infrequently. Generally, the companies that have a dominant position
in the leisure industry today seem likely to have one tomorrow as well. Marriott
International, for example, has been operating hotel chains for decades, and now
owns brands ranging from Fairfield Inn to Ritz-Carlton. Thus positioned, it
seems perfectly poised to benefit from the ongoing boom in both business and
personal travel.
Of course, other significant holdings in the fund are newer firms that attract
the attention of technology investors and others more directly aligned with the
New Economy. EchoStar Communications, for example, is an aggressive satellite
television operator. The company has drawn Wall Street's attention not only for
its competitive pricing and customer service, but also for its technological
savvy. Indeed, the stock has more than doubled since we first wrote to you about
it last fall. The company has recently made investments to become a provider of
high-speed Internet service to its customers.
Finally, the fund has maintained its extensive exposure to multinational firms.
As Europe and Asia economies continue to improve, our holdings in the luxury
goods maker Cie Financiere Richemont AG has allowed us to profit from the global
recovery. Several of our advertising and media holdings are also benefitting
from the increasing prosperity of foreign consumers, who, like Americans, tend
to spend a greater proportion of their income on leisure as they become
wealthier.
For these reasons, we are optimistic that the leisure sector will provide an
especially attractive area for growth investing. Of course, no fund can be
insulated from broad downturns in the market. Still, we look to the future with
optimism, and we hope to have further good news for you in our next report.
/s/ Mark Greenberg
Mark Greenberg
Vice President
<PAGE>
REAL ESTATE OPPORTUNITY FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
Due to a change in our fiscal year end, we only recently reported to you on our
performance for the six months ended January 31, 2000. Recently, we have been
encouraged by renewed interest in the real estate sector on the part of
investors. Indeed, this has helped our fund move from a loss at the beginning of
the year to a small gain for both the year-to-date and our reporting periods.
For the six months ended March 31, 2000, the value of Investor Class shares rose
3.88%. This return lagged that of the S&P 500 Index, which rose 17.50% over the
same period, but exceeded that of the NAREIT-Equity REIT Index, which rose only
1.37%. (Of course, past performance is not a guarantee of future
results.)(1),(2)
As we recently reported, we are optimistic that the outlook for the real estate
sector and the fund has improved. First, the recently enacted REIT Modernization
Act has given the industry increased flexibility to develop non-traditional real
estate business and made it easier for REITs to grow through higher investment
of their profits. Such internally funded growth has been highly valued by
investors in recent years.
Second, despite strong fundamentals, including high occupancy and rising rental
rates, valuations remain depressed versus historical levels. Though REITs have
performed strongly year-to-date, considerable upside exists to get to historical
valuation levels. Increased volatility in the market should also draw investors
to this high-yielding, relatively stable industry.
Third, we have broadened the fund's investment approach since the management
change. While maintaining our emphasis on REITs, we have also made new
investments in other real estate-related industries. These include companies in
the lodging and telecommunications sectors, as well as real estate firms that
are beginning to offer expanded services.
Thus, our investment strategy has been to construct a broader, more diversified
real estate investment fund, which we believe will allow us to enhance the
overall return of the portfolio while simultaneously decreasing the fund's risk
profile.
Moving forward, our goal will be to participate more fully in the potential
appreciation of the broad stock market, while also exploiting the real value
that lies in traditional real estate companies. Indeed, we would not be
surprised to see the disconnect that has existed between real estate stocks and
the broader markets narrow. A healthy new economy that boosts stock prices
should also show up in higher real estate prices as growing firms and wealthier
households seek more space.
Indeed, real estate fundamentals continue to look strong in most property types,
and we see little sign of a deterioration in property prices, rents or REIT
operating income. Higher interest rates are always a concern for the property
markets, but the vibrancy of the American economy has more than compensated for
recent increases.
In summary, the real estate markets and our fund may have turned an important
corner -- we are optimistic about the prospects for this important sector going
forward.
/s/ Sean Katoff
Sean Katoff
Portfolio Manager
<PAGE>
TECHNOLOGY FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
As our reporting period ended, the technology sector began to experience a steep
correction. As usual, the pullback garnered a great deal of attention in the
financial press and elsewhere, perhaps making it difficult for investors to
maintain a longer-term perspective. Our report may therefore come at a
particularly opportune time, for it serves as a reminder of the tremendous
appreciation in technology stock prices over recent years.
For the six-month period ended March 31, 2000, the value of Investor Class
shares rose a remarkable 110.39%, while Institutional Class shares appreciated
110.73%. This can be compared to the S&P 500 Index, which rose 17.50% over the
same period. (Of course, past performance is no guarantee of future results.
Please keep in mind that triple-digit and high double-digit returns are highly
unusual and cannot be sustained. Investors should also be aware that recent
returns were primarily achieved during favorable market conditions, especially
within the technology sector.)(1),(2)
The technology markets have been driven by a combination of strong corporate
performance, optimism for new technologies, and price momentum. These factors
have been mixed in different proportions for individual stocks. Obviously, many
young firms with modest revenues and no profits have enjoyed appreciation in
their shares based more upon the latter two influences. Other more established
technology firms have seen their shares appreciate based on very impressive
sales and earnings growth.
Our strategy is predicated on the belief that successful technology investing
over the long term relies on focusing on the first two of these factors, current
performance and future promise, while discounting the third, market momentum.
Stocks will continue to fall in and out of favor with astonishing speed, as the
market's recent gyrations have demonstrated. In part, this is due to the nature
of the sector, which is characterized by markets changing so rapidly that
leadership quickly changes hands. But too many investors have shifted assets in
and out of this sector in the hope of making short-term gains -- of buying high
and selling even higher.
Our approach has been different. In part, of course, we have focused on
concentrating the fund's investments in those companies that we believe have
solid positions within their industries. Lately, we have found many of these
firms in industries that supply equipment to the expanding service areas of the
economy. As wireless telecommuni-cations has boomed, for example, so has demand
for the small chips that allow cellular handsets to operate. Applied Micro
Circuits, one of our largest holdings, manufactures a variety of chips for
optical networks. But another key part of our strategy has been to recognize --
and accommodate -- the high degree of flux within the sector. Such is the pace
of technological change that startups can seize lucrative markets rapidly, even
within months of going public. For this reason, we remain exceptionally
diversified relative to most other technology funds, and our portfolio typically
includes more than 100 stocks. We also maintain a particular focus on smaller
technology firms that can experience growth through the "technology food chain"
- -- the process by which profits flow from large service providers down through a
myriad of vendors.
The fundamentals of the technology sector remain very encouraging -- the pace of
innovation, if anything, seems to be picking up speed. But investors should
always keep in mind that valuations are very high, and the possibility of
further corrections cannot be ruled out. Federal Reserve Chairman Alan Greenspan
has noted that securities markets are still trying to find the proper measures
to value technology stocks in an environment of rapid change. As these measures
evolve, we expect that much potential, as well as many pitfalls, will await
investors. Success seems likely to come to those who take a patient and
diversified approach.
/s/ William Keithler
William Keithler
Senior Vice President
<PAGE>
TELECOMMUNICATIONS FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
Due to a change in our fiscal year-end, it was only recently that we reported to
you. The market environment has recently evolved considerably, with investors
once again turning to traditional sectors and companies. Although the
telecommunications sector has suffered as a result, we have faith that the very
strong fundamentals behind the companies will eventually entice many investors
to return.
For the six-month period ended March 31, 2000, the value of Investor Class
shares increased a very strong 102.37%. This greatly exceeded the S&P 500 Index,
which rose 17.50% over the same period. (Of course, past performance is not a
guarantee of future results. Please keep in mind that triple-digit and high
double-digit returns are highly unusual and cannot be sustained. Investors
should also be aware that recent returns were primarily achieved during
favorable market conditions, especially within the telecommunications
sector.)(1),(2) As we explained in our last report, this remarkable performance
has been driven by many different types of communications stocks, but
telecommunications equipment manufacturers have been particularly strong
performers. JDS Uniphase has been one of the top-performing stocks in the market
as investors have rewarded its unique positioning in the emerging technology of
fiber optics. Indeed, over the first five months of our reporting period, the
company's stock roughly tripled in value, before giving back some of its gains
in March.
Great excitement has also surrounded the boom in wireless communication. Our
fund's international focus has been of particular help to us in this regard. The
British firm Vodafone AirTouch PLC has established itself as the leading
wireless service provider in the world. Its position should only improve
following its announced merger with Mannesman AG of Germany. The Finnish firm
Nokia Corp is also a world leader -- in their case in cellular handsets. (3)
We have limited our investments in other types of traditional telecommunications
companies, particularly long-distance telephone service firms. In these more
established markets, price competition is fierce. We should note, however, that
these established firms are significantly less expensive on price-to-earnings
and other measures. Should investors continue to rotate back into cheaper
stocks, our holdings in leading equipment and wireless firms will likely suffer.
It is important to note, on the other hand, that the high-growth, highly valued
firms in which we invest bear little resemblance to the storied "dot com" stocks
with little revenue and no earnings. Communications is not an area that might be
important someday -- it is a large and highly lucrative sector now.
Given the tremendous amount of money that has come into this sector over the
past several months, we would not be surprised to see some flow out in the
months ahead. But we would urge investors not to try and time the markets. In
the end, we believe the best opportunities lie with those companies that promise
to lead the economy for the coming decades.
/s/ Brian B. Hayward
Brian B. Hayward
Vice President
<PAGE>
UTILITIES FUND
A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
The past six months have been rewarding for our fund. For most of the period,
our telecommunications holdings led the portfolio. In a highly unusual change of
events, however, electric utilities rocketed upward in January, driven largely
by hopes that these Old Economy stocks held special assets that would let them
compete in the new economy.
For the six months ended March 31, 2000, the value of Investor Class shares rose
a strong 28.76%. This handily outpaced the S&P 500 Index, which rose 17.50% over
the same period, as it did the S&P Utilities Index, which rose just 2.26%. (Of
course, past performance is not a guarantee of future results.)(1),(2)
In a stock market that has amply rewarded fast-growing companies while punishing
others, our focus on aggres-sively competing utilities has proved an opportune
one. As we have described in past reports, we have consistently sought to find
those companies that are using new means to provide a basic service. Those means
could involve new technologies, or they could simply encompass providing
superior service or expanding into new markets.
We continue to find the majority of these companies in the telecommunications
area, particularly in the provision of local telephone service. Well-positioned
companies in this industry are in the enviable position of providing a necessary
service that is simultaneously being transformed by innovation.
Recently, we have found intriguing opportunities in Europe, where deregulation
and consolidation have resulted in a new set of international players. The
British firm Vodafone AirTouch PLC and the German firm Mannesman AG have
recently joined forces, for example, creating perhaps the world's strongest
wireless company. Spain's Telefonica SA has proved to be a formidable competitor
in Latin America. And as the region's fortunes have improved over the past year,
Telefonica SA has also seen its investments in Latin American firms flourish.
(3)
As we have noted in past reports, the situation in the electric utility industry
is much less appealing for investors. While technological change is relatively
slow, the deregulatory process is highly fluid -- and largely invisible to
investors, because it follows political currents. Thus, we feel it is much more
difficult for us to predict the eventual leaders, who, in turn, will be
competing for slower-growing markets.
Despite these factors, a burst of excitement surrounded the electric utility
industry as Wall Street analysts concluded that many companies possessed
undervalued fiber optic networks. In fact, most utilities have installed such
networks for the purpose of maintaining their grids; and some, led by portfolio
holding Enron Corp., have rented out the excess capacity to telecommunications
operators. In our opinion, however, this merely emphasizes the greater
opportunities found in the telecommunications sector.
Finally, conditions in the natural gas industry have also been favorable. Strong
demand and minimal new production have led to increases in natural gas prices.
Again, however, we are convinced that prices will eventually go back down as
supply and demand balance out. While these stocks add a valuable bulwark to the
portfolio, we believe investors are better served by focusing on areas with more
dynamic, long-term growth potential.
As we move forward, we will continue to pursue the twin goals of growth and
stability. Focusing on companies that provide basic services in an innovative
manner has proved to be a valuable strategy, and we hope to report further
successes in the future.
/s/ Brian B. Hayward
Brian B. Hayward
Vice President
<PAGE>
FUND MANAGERS
ENERGY AND 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.
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 and began his investment career in 1991.
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.
REAL ESTATE OPPORTUNITY
Sean Katof assumed management responsibilities for the fund in February 2000. He
earned his BS and MS from the University of Colorado. He joined INVESCO Funds in
1994.
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 an MS from the University of Wisconsin-Madison and a
BS from Webster College. He is a Chartered Financial Analyst.
TELECOMMUNICATIONS AND 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 an MA in economics from the University of Missouri. He is a
Chartered Financial Analyst and began his investment career in 1985.
<PAGE>
MARKET HEADLINES: NOVEMBER 1999 TO MARCH 2000
- --------------------------------------------------------------------------------
The past five months continued to see a sharp divergence between the performance
of New Economy stocks -- particularly technology, telecommunications, and media
companies -- and lagging Old Economy shares, which included financial services,
industrial products and basic materials. As a result, the technology-intensive
Nasdaq Index far outpaced the more Old Economy-based S&P 500 Index and Dow Jones
Industrial Average. (2),(3)
High-flying valuations on New Economy shares led skeptics to warn that a bubble
of irrational exuberance was swelling the market. However, proponents of the
"new paradigm" argued that these gains were justified by the tremendous growth
potential tied to trends such as exploding Internet use, business-to-business
e-commerce, wireless voice and data communications, and genetic treatments for
disease. Nonetheless, the New Economy onslaught appeared to take a breather in
March, as investors rotated out of the most speculative Nasdaq stocks to take
advantage of low valuations on many cyclical and financial services shares. As a
result, the Nasdaq lost some ground during the month, while the Dow and the S&P
500 more than outpaced their performance of the preceding five months.
This reversal led some pessimists to argue that the U.S. economic expansion was
losing steam. However, market fundamentals remained overwhelmingly positive.
Real GDP grew at a phenomenal 7.9% annual rate in the fourth quarter of 1999,
capping a 4.2% gain for the year. Meanwhile, economies in Asia and Latin America
continued to rebound from their difficulties of 1998. European economic growth
was also accelerating, fueled by deregulation, cross-border consolidation and
investment in technology.
With the global economy firing on all cylinders, inflation became the dominant
concern, especially after oil prices surged early in 2000. Yet inflation has so
far proven a "no-show" in the U.S. economy. While higher oil prices drove the
consumer price index to a 3.2% year-over-year gain in February, the core rate
- --which excludes volatile food and energy prices -- was up only 2.1% from a year
earlier, near its business cycle low. This combination of robust growth with low
inflation -- the best of both worlds -- is a testament to the tremendous
productivity gains engendered by the new technology. Nonfarm productivity growth
rose at a 3.1% rate in both 1998 and 1999, and surged at a nearly 6% annualized
rate in the past two quarters. These productivity enhancements have been
instrumental in containing inflation, particularly in labor markets where the
unemployment rate continues to hover near a 30-year low.
Nonetheless, even in the absence of inflation, the biggest risk for the economy
is that the Federal Reserve could take away the punch bowl. The Federal Reserve
Open Market Committee (FOMC) has voted to raise short-term interest rates five
times since last June, for a total increase of 1.25%. The latest quarter-point
hikes, in February and March, were widely anticipated, and the market believes
that another rate hike is likely when the FOMC meets again in May. In public
statements, Fed Chairman Alan Greenspan has hailed the unprecedented performance
of the U.S. economy and its "virtuous business cycle" of soaring investment,
surging productivity and low inflation. Yet he has also warned that these very
virtues could prove the economy's undoing. Productivity gains have bolstered
consumer incomes and corporate profits, which sent stock values soaring. At
least on paper, skyrocketing equity prices have translated into tremendous
consumer wealth, as the net worth of American households surged by an incredible
$4.7 trillion last year. By that measure, Americans are better off than ever
before. Greenspan is concerned that consumers will outspend the economy's
ability to produce, bringing inflation to the boiling point. For this reason, he
has linked the outlook for monetary policy to the behavior of share prices, a
prospect that has injected additional volatility into the equity markets.
<PAGE>
The risk of additional Fed tightening has put upward pressure on the short end
of the bond yield curve. At the same time, investor confidence in the central
bank's ability to contain inflation contributed to a decline in long-term
Treasury bond yields. The result was an inverted yield curve. Market pessimists
pointed to this development as yet another sign that the expansion was on its
last legs, since inverted yield curves have historically foretold a number of
recessions, some of which actually occurred.
Despite these risks, the near-term risk of recession remains low. Consumers
continue to spend, supported by healthy income growth and a solid employment
market. As long as inflation remains modest, we also believe the central bank
will act with restraint to slow rates. Of course, uncertainty over interest
rates will keep the market volatile. We caution that the coming period could
witness a turbulent securities market and that it will be difficult for equities
to record the kind of gains we saw last year. Nonetheless, we are confident that
this environment will provide opportunities for investors, such as ourselves,
who rely on bottom-up research to identify solid companies that can perform well
in any kind of market environment.
SINCE THE FUNDS ARE ACTIVELY MANAGED, HOLDINGS WILL CHANGE OVER TIME.
PLEASE KEEP IN MIND THAT TRIPLE-DIGIT AND HIGH DOUBLE-DIGIT RETURNS ARE
HIGHLY UNUSUAL AND CANNOT BE SUSTAINED. INVESTORS SHOULD ALSO BE AWARE THAT
RECENT RETURNS WERE PRIMARILY ACHIEVED DURING FAVORABLE MARKET CONDITIONS.
(1)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FOR THE PERIODS
INDICATED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN
REDEEMED, AN INVESTOR'S SHARES MAY BE WORTH MORE OR LESS THAN WHEN PURCHASED.
(2)THE S&P 500 IS AN UNMANAGED INDEX OF COMMON STOCKS CONSIDERED
REPRESENTATIVE OF THE BROAD U.S. STOCK MARKET WHILE THE NASDAQ REFLECTS STOCKS
TRADED OVER-THE-COUNTER. THE DOW JONES INDUSTRIAL AVERAGE REFLECTS
LARGE-CAPITALIZATION STOCKS. THE S&P UTILITY AND S&P FINANCIAL INDEXES ARE
CONSIDERED REPRESENTATIVE OF THOSE SECTORS. THE MSCI-EAFE INDEX IS AN UNMANAGED
INDEX REPRESENTING THE PERFORMANCE OF COMMON STOCKS FOR EUROPE, ASIA AND THE FAR
EAST.
THE NAREIT-EQUITY REIT INDEX IS AN UNMANAGED INDEX INDICATIVE OF THE U.S.
REAL ESTATE INVESTMENT TRUST MARKET.
(3)INTERNATIONAL INVESTING IS SUBJECT TO SPECIAL RISKS, INCLUDING CURRENCY
EXCHANGE RATE FLUCTUATIONS AND DIFFERENCES IN SECURITIES REGULATION AND
ACCOUNTING PRACTICES.
<PAGE>
FIVE LARGEST COMMON STOCK HOLDINGS
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
ENERGY FUND
Coastal Corp $ 10,580,000
Nabors Industries 9,703,125
Anadarko Petroleum 9,478,437
Weatherford International 9,465,363
Murphy Oil 9,220,000
FINANCIAL SERVICES FUND
Marsh & McLennan $ 53,865,594
Bank of New York 52,983,875
Citigroup Inc 51,332,003
Northern Trust 48,239,625
Firstar Corp 48,146,180
GOLD FUND
Barrick Gold $ 5,300,806
Meridian Gold 4,940,625
Newmont Mining 4,599,687
Pacific Rim Mining 3,659,306
Placer Dome 3,656,250
HEALTH SCIENCES FUND
Merck & Co $ 67,809,437
Warner-Lambert Co 67,652,813
Bristol-Myers Squibb 59,817,450
Chiron Corp 54,074,475
Johnson & Johnson 54,042,359
LEISURE FUND
AT&T Corp-Liberty Media Group Class A Shrs $ 48,246,208
Harrah's Entertainment 40,839,356
Marriott International Class A Shrs 24,932,250
EchoStar Communications Class A Shrs 21,646,000
Gemstar International Group Ltd 21,500,000
REAL ESTATE OPPORTUNITY FUND
Spectrasite Holdings $ 743,203
Simon Property Group 722,400
Avalonbay Communities 718,692
Essex Property Trust 712,800
Apartment Investment & Management Class A Shrs 706,469
<PAGE>
FIVE LARGEST COMMON STOCK HOLDINGS (CONTINUED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
Cisco Systems $213,549,495
Applied Micro Circuits 200,873,662
SDL Inc 156,782,438
PMC-Sierra Inc 153,254,475
Nokia Corp Sponsored ADR Representing Ord Shrs 141,690,450
TELECOMMUNICATIONS FUND
EchoStar Communications Class A Shrs $130,476,400
SDL Inc 120,253,088
Applied Micro Circuits 117,889,100
PMC-Sierra Inc 113,352,094
JDS Uniphase 108,964,387
UTILITIES FUND
AT&T Canada Class B Shrs Depository Receipts $ 24,034,000
COLT Telecom Group PLC Sponsored ADR Representing 4 Ord Shrs 12,802,513
Vodafone AirTouch PLC 12,293,277
Montana Power 10,662,400
McLeodUSA Inc Class A Shrs 10,406,494
Composition of holdings is subject to change.
STATEMENT OF INVESTMENT SECURITIES
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
ENERGY FUND
93.33 COMMON STOCKS
13.17 NATURAL GAS
Coastal Corp 230,000 $ 10,580,000
Enron Corp 55,000 4,118,125
Kinder Morgan 115,000 3,967,500
Western Gas Resources 295,000 4,683,125
Williams Cos 175,000 7,689,063
================================================================================
31,037,813
68.71 OIL & GAS
12.77 DOMESTIC INTEGRATED
Amerada Hess 110,000 7,108,750
Murphy Oil 160,000 9,220,000
Unocal Corp 200,000 5,950,000
USX-Marathon Group 300,000 7,818,750
================================================================================
30,097,500
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
18.81 DRILLING & EQUIPMENT
Atwood Oceanics(a) 24,000 $ 1,591,500
Cooper Cameron(a) 56,700 3,791,812
Diamond Offshore Drilling 50,000 1,996,875
Dril-Quip Inc(a) 124,300 5,857,638
Grey Wolf(a) 510,000 2,008,125
Nabors Industries(a) 250,000 9,703,125
Noble Drilling(a) 140,000 5,801,250
Rowan Cos(a) 70,000 2,060,625
Santa Fe International 167,000 6,179,000
Smith International(a) 68,800 5,332,000
================================================================================
44,321,950
19.50 EXPLORATION & PRODUCTION
Anadarko Petroleum 245,000 9,478,437
Apache Corp 135,000 6,716,250
Barrett Resources(a) 200,000 5,962,500
Basin Exploration(a) 167,000 2,494,562
Cabot Oil & Gas Class A Shrs 146,200 2,640,738
Canadian Occidental Petroleum 350,000 8,093,750
EOG Resources 205,000 4,343,438
Evergreen Resources(a) 82,300 1,990,631
Kerr-McGee Corp 73,200 4,227,300
================================================================================
45,947,606
13.28 INTERNATIONAL INTEGRATED
Chevron Corp 72,000 6,655,500
Conoco Inc Class B Shrs 346,000 8,866,250
Exxon Mobil 105,000 8,170,312
Shell Transport & Trading PLC New York
Registered Shrs 155,000 7,604,688
================================================================================
31,296,750
4.35 REFINING & MARKETING
Tosco Corp 95,000 2,891,562
Ultramar Diamond Shamrock 290,000 7,358,750
================================================================================
10,250,312
TOTAL OIL & GAS 161,914,118
================================================================================
11.45 OIL WELL EQUIPMENT & SERVICES
Coflexip SA Sponsored ADR Representing
1/2 Ord Shr 26,100 1,428,975
Halliburton Co 200,000 8,200,000
Varco International(a) 425,000 5,365,625
Veritas DGC(a) 90,000 2,531,250
Weatherford International(a) 160,600 9,465,363
================================================================================
26,991,213
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
TOTAL COMMON STOCKS (Cost $168,286,578) $ 219,943,144
================================================================================
6.67 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 3/31/2000 due 4/3/2000 at 5.920%,
repurchased at $15,715,749
(Collateralized by US Treasury
Inflationary Index Notes, due 1/15/2009
at 3.875%, value $16,024,458)
(Cost $15,708,000) $15,708,000 15,708,000
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $183,994,578)
(Cost for Income Tax Purposes $186,147,009) $ 235,651,144
================================================================================
FINANCIAL SERVICES FUND
87.91 COMMON STOCKS
31.03 BANKS
Bank of America 220,200 $ 11,546,737
Bank of New York 1,274,800 52,983,875
Chase Manhattan 270,100 23,549,344
City National 276,100 9,301,119
Commerzbank AG 100,000 3,779,755
Fifth Third Bancorp 607,700 38,285,100
Firstar Corp 2,099,016 48,146,180
FleetBoston Financial 916,400 33,448,600
Morgan (J P) & Co 84,900 11,185,575
North Fork Bancorp 95,000 1,698,125
Northern Trust 714,000 48,239,625
Toronto-Dominion Bank 794,600 21,205,888
Wells Fargo 407,500 16,682,031
Zions Bancorp 578,900 24,096,713
================================================================================
344,148,667
3.98 CONSUMER FINANCE
American Express 296,500 44,159,969
================================================================================
18.45 FINANCIAL
Associates First Capital Class A Shrs 1,292,000 27,697,250
Capital One Financial 948,000 45,444,750
Citigroup Inc 865,450 51,332,003
Financial Federal(a) 10,000 181,875
Freddie Mac 662,700 29,283,056
Providian Financial 465,850 40,354,256
S1 Corp(a) 121,100 10,376,756
================================================================================
204,669,946
13.89 INSURANCE
AFLAC Inc 496,800 22,635,450
American International Group 219,935 24,082,882
AXA Financial 558,000 20,018,250
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Hartford Financial Services Group 375,200 $ 19,791,800
Hartford Life Class A Shrs 318,400 14,925,000
Nationwide Financial Services Class A Shrs 300,000 8,775,000
Radian Group 493,800 23,517,225
Travelers Property Casualty Class A Shrs 492,700 20,323,875
================================================================================
154,069,482
4.86 INSURANCE BROKERS
Marsh & McLennan 488,300 53,865,594
================================================================================
8.74 INVESTMENT BANK/BROKER FIRM
Consors Discount Broker AG(a) 5,400 758,554
Donaldson Lufkin & Jenrette 235,800 12,202,650
Lehman Brothers Holdings 126,500 12,270,500
Morgan Stanley Dean Witter & Co 417,000 34,011,562
Paine Webber Group 258,600 11,378,400
Schwab (Charles) Corp 389,500 22,128,469
Waddell & Reed Financial Class A Shrs 100,000 4,231,250
================================================================================
96,981,385
3.89 RAILROADS
Kansas City Southern Industries 501,900 43,132,031
================================================================================
2.01 SAVINGS & LOAN
Charter One Financial 1,064,262 22,349,502
================================================================================
1.06 SERVICES
CheckFree Holdings(a) 167,500 11,808,750
================================================================================
TOTAL COMMON STOCKS (Cost $755,200,502) 975,185,326
================================================================================
12.09 SHORT-TERM INVESTMENTS
11.72 Commercial Paper
6.31 CONSUMER FINANCE
General Motors Acceptance, 6.250%, 4/3/2000 $40,000,000 40,000,000
Sears Roebuck Acceptance, 6.130%, 4/4/2000 $30,000,000 30,000,000
70,000,000
5.41 FINANCIAL
Deere (John) Capital, 6.030%, 4/5/2000 $30,000,000 30,000,000
Ford Motor Credit, 6.010%, 4/3/2000 $30,000,000 30,000,000
================================================================================
60,000,000
TOTAL COMMERCIAL PAPER (Cost $130,000,000) 130,000,000
================================================================================
0.37 Repurchase Agreements
Repurchase Agreement with State Street
dated 3/31/2000 due 4/3/2000, at
5.920%, repurchased at $4,064,004
(Collateralized by US Treasury
Inflationary Index Notes, due
1/15/2009, at 3.875%, value $4,144,639)
(Cost $4,062,000) $ 4,062,000 4,062,000
================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $134,062,000) 134,062,000
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $889,262,502)
(Cost for Income Tax Purposes $893,831,498) $1,109,247,326
================================================================================
GOLD FUND
77.14 COMMON STOCKS
77.14 GOLD & PRECIOUS METALS MINING
Aber Resources Ltd(a) CA 200,000 $ 1,112,500
Agnico-Eagle Mines Ltd CA 560,000 3,115,000
AngloGold Ltd Sponsored ADR
Representing 1/2 Ord Shr SF 145,000 3,480,000
Barrick Gold CA 337,900 5,300,806
Battle Mountain Gold(a) 1,200,000 2,325,000
Claude Resources(a) CA 346,700 191,046
Francisco Gold(a)(b) CA 256,700 1,043,208
Franco-Nevada Mining Ltd CA 310,000 3,266,979
Glamis Gold Ltd(a) CA 86,000 161,250
Goldcorp Inc Class A Shrs(a) CA 463,600 2,781,600
Guyanor Ressources SA Class B
Shrs(a)(b) FR 1,000,000 482,160
Harmony Gold Mining Ltd Sponsored
ADR Representing Ord Shrs SF 110,000 673,750
Homestake Mining 478,000 2,868,000
IAMGOLD Corp(a) CA 1,640,000 2,993,525
Manhattan Minerals(a) CA 360,000 991,872
Meridian Gold(a) CA 850,000 4,940,625
Metallica Resources(a) CA 500,000 125,000
Newmont Mining 205,000 4,599,687
Pacific Rim Mining(a)(b) CA 1,264,900 3,659,306
Placer Dome CA 450,000 3,656,250
Repadre Capital(a) CA 500,000 602,700
Rio Narcea Gold Mines Ltd(a) CA 545,900 575,305
Solitario Resources(a) CA 191,000 223,653
SouthernEra Resources Ltd(a) CA 205,000 254,167
Star Resources(a)(b) CA 4,169,500 2,871,952
Stillwater Mining(a) 45,000 1,800,000
Teck Corp Class B Shrs CA 260,000 1,880,424
Viceroy Resource(a) CA 1,600,000 694,311
================================================================================
TOTAL COMMON STOCKS (Cost $71,112,831) 56,670,076
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
6.16 PREFERRED STOCKS
6.16 GOLD & PRECIOUS METALS MINING
Freeport McMoRan Copper & Gold Depository
Shrs Represeneting 1/20 Series Gold Pfd
Shr (Cost $4,385,227) 222,000 $ 4,523,250
================================================================================
12.72 OTHER
12.72 GOLD BULLION
Gold Bullion Troy Ounce(a) (Cost $9,475,205) 33,478(c) 9,342,851
3.98 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 3/31/2000 due 4/3/2000 at 5.920%,
repurchased at $2,929,444 (Collateralized
by US Treasury Inflationary Index Notes,
due 1/15/2009 at 3.875%, value $2,991,437)
(Cost $2,928,000) $ 2,928,000 2,928,000
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $87,901,263)
(Cost for Income Tax Purposes $92,575,578) $ 73,464,177
================================================================================
HEALTH SCIENCES FUND
81.78 COMMON STOCKS
1.76 BIOTECHNOLOGY
Celltech Group PLC(a) 693,400 $ 12,566,217
Titan Pharmaceuticals(a) 288,615 8,983,142
Titan Pharmaceuticals(a)(i) 187,350 5,248,142
================================================================================
26,797,501
27.43 BIOTECHNOLOGY -- HEALTH CARE
Abgenix Inc(a) 51,690 7,139,681
Alexion Pharmaceuticals(a) 419,890 29,287,327
Amgen Inc(a) 257,600 15,810,200
Amylin Pharmaceuticals(a)(i) 295,000 3,600,844
Ares-Serono Group SA Series B Shrs 4,605 17,337,644
Celgene Corp(a) 70,200 6,989,287
Cell Therapeutics(a) 608,000 14,250,000
Cephalon Inc(a) 170,500 6,393,750
Chiron Corp(a) 1,084,200 54,074,475
Collateral Therapeutics(a) 8,400 368,550
COR Therapeutics(a) 507,700 33,468,536
Creative BioMolecules(a) 1,057,200 10,472,918
Cubist Pharmaceuticals(a) 483,400 20,242,375
Ecogen Technologies I(a)(b)(i) 100 1
Genentech Inc(a) 221,700 33,698,400
IDEC Pharmaceuticals(a) 126,200 12,399,150
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
ILEX Oncology(a) 346,000 $ 14,532,000
ImClone Systems(a) 376,300 28,928,063
Immunex Corp(a) 630,750 40,013,203
Medarex Inc(a) 293,500 14,748,375
MedClone Trust(a)(i) 144,405 1
NPS Pharmaceuticals(a)(i) 596,700 8,089,014
Protein Design Labs(a) 199,800 15,884,100
Transkaryotic Therapies(a) 341,000 18,968,125
Vical Inc(a) 320,188 10,726,298
Xenometrix Inc(a)(i) 121,058 320,047
================================================================================
417,742,364
3.34 ELECTRONICS -- INSTRUMENTS
PE Corp-PE Biosystems Group 527,200 50,874,800
================================================================================
43.92 HEALTH CARE DRUGS -- PHARMACEUTICALS
Alkermes Inc(a) 258,820 23,940,850
Allergan Inc 433,800 21,690,000
American Home Products 863,175 46,287,759
AstraZeneca Group PLC Sponsored ADR
Representing Ord Shrs 5,750 232,875
Bristol-Myers Squibb 1,035,800 59,817,450
DUSA Pharmaceuticals(a)(b) 682,500 16,337,344
Forest Laboratories(a) 550,000 46,475,000
Glaxo Wellcome PLC Sponsored ADR
Representing 2 Ord Shrs 17,700 1,014,431
Human Genome Sciences(a) 489,400 40,650,787
Inhale Therapeutic Systems(a) 273,300 20,360,850
Johnson & Johnson 771,345 54,042,359
Merck & Co 1,091,500 67,809,437
Millennium Pharmaceuticals(a) 154,000 20,000,750
Pfizer Inc 1,376,705 50,335,777
Pharmacia & Upjohn 800,645 47,438,216
QLT PhotoTherapeutics(a) 135,400 7,480,850
Schering-Plough Corp 1,061,800 39,021,150
SmithKline Beecham PLC Sponsored ADR
Representing 5 Ord Shrs 15,625 1,032,227
Takeda Chemical Industries Ltd 256,700 18,270,463
Warner-Lambert Co 693,875 67,652,813
Yamanouchi Pharmaceutical Ltd 345,900 18,953,425
================================================================================
668,844,813
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
0.14 HEALTH CARE -- SERVICES
Mediconsult.com Inc(a)(i) 933,434 $ 2,012,717
Mediconsult.com Inc Escrowed Shrs(a)(i) 103,715 149,090
================================================================================
2,161,807
5.19 MEDICAL EQUIPMENT & DEVICES
Guidant Corp(a) 697,700 41,033,481
Medtronic Inc 309,189 15,903,909
Pharmacopeia Inc(a)(i) 272,000 11,995,200
Targeted Genetics(a) 515,300 7,149,787
Targeted Genetics(a)(i) 244,000 3,046,950
================================================================================
79,129,327
TOTAL COMMON STOCKS (Cost $1,002,712,461) 1,245,550,612
================================================================================
0.10 PREFERRED STOCKS
0.10 BIOTECHNOLOGY -- HEALTH CARE
Ingenex Inc, Pfd, Series B Shrs(a)(i) 103,055 62,864
MedClone Trust, Conv Pfd, Series G Shrs(a)(i) 581,396 75,581
Osiris Therapeutics, Conv Pfd, Series C
Shrs(a)(i) 382,353 1,300,000
================================================================================
1,438,445
0.00 MEDICAL EQUIPMENT & DEVICES
Janus Biomedical, Conv Pfd, Series A Shrs
(a)(b)(i) 400,000 1
================================================================================
TOTAL PREFERRED STOCKS (Cost $3,900,001) 1,438,446
================================================================================
18.12 SHORT-TERM INVESTMENTS
0.02 FIXED INCOME SECURITIES
0.02 HEALTH CARE -- SERVICES
Mediconsult.com Inc, Bridge Notes
12.000%, 10/31/2000 (Cost $292,070)(d)(i) $ 292,070 292,070
================================================================================
11.91 COMMERCIAL PAPER
2.62 BANKS
Wells Fargo & Co, 6.100%, 4/3/2000 $40,000,000 39,986,438
5.27 CONSUMER FINANCE
American Express Credit, 6.100%, 4/5/2000 $50,228,000 50,228,000
Sears Roebuck Acceptance, 6.150%, 4/4/2000 $30,000,000 30,000,000
================================================================================
80,228,000
4.02 FINANCIAL
Chevron USA, 6.060%, 4/3/2000 $41,668,000 41,668,000
Heller Financial, 6.150%, 4/4/2000 $19,562,000 19,562,000
================================================================================
61,230,000
TOTAL COMMERCIAL PAPER (Cost $181,444,438) 181,444,438
================================================================================
5.46 INVESMENT COMPANIES
INVESCO Treasurer's Series Money Market
Reserve Fund 5.884% (Cost $83,193,118) 83,193,118 83,193,118
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
0.73 REPURCHASE AGREEMENTS
Repurchase Agreement with State
Street dated 3/31/2000 due
4/3/2000 at 5.920%, repurchased
at $7,103,503 (Collateralized by
US Treasury Notes, due 1/31/2003
at 5.500%, value $7,255,587) $ 7,100,000 $ 7,100,000
Repurchase Agreement with State
Street dated 3/31/2000 due 4/3/2000
at 5.920%, repurchased at $4,001,973
(Collateralized by US Treasury
Inflationary Index Notes, due 1/15/2009
at 3.875%, value $4,083,085) $ 4,000,000 4,000,000
================================================================================
TOTAL REPURCHASE AGREEMENTS (Cost $11,100,000) 11,100,000
================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $276,029,626) 276,029,626
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $1,282,642,088)
(Cost for Income Tax Purposes $1,326,728,588) $ 1,523,018,684
================================================================================
LEISURE FUND
92.19 COMMON STOCKS
3.49 BEVERAGES
Anheuser-Busch Cos 91,300 $ 5,683,425
Heineken NV NL 248,400 13,275,208
18,958,633
================================================================================
12.53 BROADCASTING
AMFM Inc(a) 97,200 6,038,550
Belo (A H) Corp Class A Shrs 135,400 2,420,275
CBS Corp(a) 56,400 3,193,650
Clear Channel Communications(a) 53,300 3,681,031
EchoStar Communications Class A Shrs(a) 274,000 21,646,000
General Motors Class H Shrs(a) 40,700 5,067,150
Infinity Broadcasting Class A Shrs(a) 120,300 3,894,712
Sinclair Broadcast Group Class A Shrs(a) 385,200 3,442,725
Television Broadcasts Ltd Sponsored ADR
Representing 2 Ord Shrs HK 154,500 2,748,122
TV Guide Class A Shrs(a) 288,600 13,870,838
UnitedGlobalCom Inc Class A Shrs(a) 26,900 2,019,181
================================================================================
68,022,234
18.21 CABLE
AT&T Corp-Liberty Media Group Class A Shrs(a) 814,282 48,246,208
Cablevision Systems Class A Shrs(a) 50,800 3,086,100
Comcast Corp Special Class A Shrs(a) 388,556 16,853,617
MediaOne Group(a) 185,900 15,057,900
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
NTL Inc(a) 143,897 $ 13,355,440
USA Networks(a) 99,400 2,242,713
================================================================================
98,841,978
1.21 COMPUTER RELATED
Activision Inc(a) 176,500 2,129,031
Electronic Arts(a) 62,000 4,413,625
================================================================================
6,542,656
0.81 CONSUMER -- JEWELRY, NOVELTIES
& GIFTS
De Beers Consolidated Mines
Deferred ADR Representing
Ord Shrs SF 192,200 4,408,588
================================================================================
11.45 ENTERTAINMENT
Disney (Walt) Co 84,399 3,492,009
Gemstar International Group Ltd(a) 250,000 21,500,000
Granada Group PLC(a) UK 173,458 1,860,926
Seagram Co Ltd CA 129,500 7,705,250
SFX Entertainment Class A Shrs(a) 122,700 5,007,694
Time Warner 151,400 15,140,000
Viacom Inc
Class A Shrs(a) 82,080 4,386,150
Class B Non-Voting Shrs(a) 57,604 3,038,611
================================================================================
62,130,640
0.61 FOOTWEAR
NIKE Inc Class B Shrs 82,900 3,284,913
================================================================================
8.72 GAMING
Harrah's Entertainment(a) 2,200,100 40,839,356
MGM Grand 161,278 3,870,672
Park Place Entertainment(a) 227,300 2,628,156
================================================================================
47,338,184
0.25 HOUSEHOLD FURNITURE & APPLIANCES
Harman International Industries 22,770 1,366,200
================================================================================
7.01 LEISURE TIME
Bally Total Fitness Holdings(a) 37,100 908,950
Carnival Corp 304,200 7,547,962
Cedar Fair LP 97,800 1,943,775
International Game Technology(a) 431,621 9,360,780
Intrawest Corp CA 92,000 1,552,500
Premier Parks(a) 74,700 1,568,700
Royal Caribbean Cruises Ltd 184,224 5,158,272
Steiner Leisure Ltd(a) 328,500 6,323,625
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Vail Resorts(a) 45,100 $ 727,238
WMS Industries(a) 299,800 2,960,525
================================================================================
38,052,327
4.87 LODGING -- HOTELS
Extended Stay America(a) 201,600 1,512,000
Marriott International Class A Shrs 791,500 24,932,250
================================================================================
26,444,250
7.03 PUBLISHING
Harcourt General 56,200 2,093,450
Houghton Mifflin 68,000 2,885,750
McClatchy Co Class A Shrs 97,700 3,199,675
McGraw-Hill Cos 70,000 3,185,000
Meredith Corp 98,000 2,713,375
Pearson PLC UK 50,000 1,739,675
Scripps (E W) Co Class A Shrs 54,900 2,662,650
Times Mirror Class A Shrs 16,000 1,487,000
Valassis Communications(a) 545,700 18,178,631
================================================================================
38,145,206
0.38 REAL ESTATE INVESTMENT TRUST
Starwood Hotels & Resorts Worldwide 79,300 2,081,625
================================================================================
1.84 RETAIL
Tuesday Morning(a) 406,700 5,846,313
Wal-Mart Stores 34,300 1,903,650
Wild Oats Markets(a) 110,300 2,261,150
================================================================================
10,011,113
9.79 SERVICES
Catalina Marketing(a) 8,200 830,250
DoubleClick Inc(a) 16,250 1,521,406
Fairfield Communities(a) 147,500 1,170,781
Harte-Hanks Inc 427,300 9,694,369
Omnicom Group 208,400 19,472,375
True North Communications 153,200 6,022,675
WPP Group PLC(a) UK 700,400 12,313,176
Young & Rubicam 44,800 2,105,600
================================================================================
53,130,632
2.77 TEXTILE -- APPAREL MANUFACTURING
Jones Apparel Group(a) 323,100 10,298,812
Polo Ralph Lauren(a) 253,900 4,744,756
================================================================================
15,043,568
0.28 TOBACCO
Philip Morris 71,000 1,499,875
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
0.94 TOYS
Hasbro Inc 213,200 $ 3,517,800
Mattel Inc 154,200 1,609,462
================================================================================
5,127,262
TOTAL COMMON STOCKS (Cost $303,385,170) 500,429,884
================================================================================
1.29 PREFERRED STOCKS
0.24 BROADCASTING
ProSieben Media AG, Pfd GM 10,600 1,278,036
================================================================================
1.05 ENTERTAINMENT
News Corp Ltd Sponsored ADR
Representing 4 Ltd Voting Pfd Shrs AS 119,778 5,719,400
================================================================================
TOTAL PREFERRED STOCKS (Cost $1,882,571) 6,997,436
================================================================================
3.31 OTHER SECURITIES
3.31 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 $9,774,558) SZ 7,077 17,982,995
================================================================================
3.21 SHORT-TERM INVESTMENTS
2.28 COMMERCIAL PAPER
2.28 FINANCIAL
American General Finance, 6.240%, 4/3/2000
(Cost $12,369,000) $12,369,000 12,369,000
================================================================================
0.93 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund
5.884% (Cost $5,024,265) 5,024,265 5,024,265
================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $17,393,265) 17,393,265
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $332,435,564)
(Cost for Income Tax Purposes $332,802,213) $ 542,803,580
================================================================================
REAL ESTATE OPPORTUNITY FUND
96.28 COMMON STOCKS
4.19 BROADCASTING
Spectrasite Holdings(a) 26,250 $ 743,203
================================================================================
1.43 GAMING
Harrah's Entertainment(a) 13,650 253,378
================================================================================
1.11 LODGING -- HOTELS
Marriott International Class A Shrs 6,250 196,875
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
3.25 PAPER & FOREST PRODUCTS
Champion International 4,200 $ 223,650
Weyerhaeuser Co 6,200 353,400
================================================================================
577,050
76.33 REAL ESTATE INVESTMENT TRUST
Apartment Investment & Management Class A Shrs 18,500 706,469
Archstone Communities Trust 22,700 452,581
Arden Realty 26,800 559,450
Avalonbay Communities 19,623 718,692
Boston Properties 18,100 575,806
Brandywine Realty Trust SBI 26,400 452,100
BRE Properties Class A Shrs 25,900 668,544
CarrAmerica Realty 29,200 616,850
CBL & Associates Properties 17,600 359,700
Developers Diversified Realty 33,900 470,362
Equity Office Properties Trust SBI 28,000 703,500
Equity Residential Properties Trust 10,800 434,025
Essex Property Trust 19,800 712,800
First Industrial Realty Trust 20,900 569,525
General Growth Properties 22,500 684,844
Health Care Property Investors 20,000 508,750
Kilroy Realty 26,700 562,369
Liberty Property Trust SBI 25,600 612,800
MeriStar Hospitality 20,100 350,494
Post Properties 9,400 378,938
ProLogis Trust SBI 11,700 225,225
Public Storage 28,100 590,100
Simon Property Group 30,100 722,400
SL Green Realty 19,300 458,375
Vornado Realty Trust 13,500 452,250
================================================================================
13,546,949
3.47 RETAIL
Circuit City Stores-Circuit City Group 3,400 206,975
Home Depot 3,100 199,950
Target Corp 2,800 209,300
================================================================================
616,225
5.05 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
American Tower Class A Shrs(a) 4,500 222,187
Crown Castle International(a) 17,800 674,175
================================================================================
896,362
1.45 TELECOMMUNICATIONS -- LONG DISTANCE
Cable & Wireless PLC Sponsored ADR
Representing 3 Ord Shrs 4,600 257,600
================================================================================
TOTAL COMMON STOCKS (Cost $16,646,878) 17,087,642
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
3.72 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with
State Street dated 3/31/2000
due 4/3/2000 at 5.920%, repurchased at $660,326
(Collateralized by US Treasury Inflationary Index
Notes, due 1/15/2009 at 3.875%, value $677,094)
(Cost $660,000) $ 660,000 $ 660,000
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $17,306,878)
(Cost for Income Tax Purposes $17,956,587) $ 17,747,642
================================================================================
TECHNOLOGY FUND
99.79 COMMON STOCKS & RIGHTS
0.80 BROADCASTING
EchoStar Communications Class A Shrs(a) 929,400 $ 73,422,600
================================================================================
9.82 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
ADC Telecommunications(a) 672,800 36,247,100
CIENA Corp(a) 830,700 104,772,037
E-Tek Dynamics(a) 439,400 103,368,850
JDS Uniphase(a) 736,400 88,782,225
Nokia Corp Sponsored ADR Representing Ord Shrs 652,200 141,690,450
Nortel Networks 823,300 103,735,800
Polycom Inc(a) 704,800 55,811,350
Powerwave Technologies(a) 499,200 62,400,000
Scientific-Atlanta Inc 1,511,000 95,854,063
Telefonaktiebolaget LM Ericsson Sponsored ADR
Representing Series B Shrs(a) 773,100 72,526,444
Terayon Communication Systems(a) 201,800 41,369,000
================================================================================
906,557,319
25.45 COMPUTER SOFTWARE & SERVICE
Active Software(a) 150,300 9,560,489
Agile Software(a) 68,000 4,250,000
Art Technology Group(a) 801,800 52,668,237
Aspect Development(a) 1,531,000 98,558,125
BEA Systems(a) 1,027,900 75,422,162
BroadVision Inc(a) 1,278,100 57,354,737
Check Point Software Technologies Ltd(a) 258,600 44,236,763
Citrix Systems(a) 1,201,600 79,606,000
Computer Associates International 1,023,200 60,560,650
Edwards (J D) & Co(a) 1,047,500 34,109,219
Exodus Communications(a) 316,500 44,468,250
InfoSpace.com Inc(a) 354,600 51,572,137
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Inktomi Corp(a) 316,000 $ 61,620,000
Internet HOLDRs Trust Depositary Receipts(a)(e) 169,000 28,117,375
Intuit Inc(a) 1,248,200 67,870,875
IONA Technologies PLC Sponsored ADR
Representing Ord Shrs(a) 374,600 27,720,400
i2 Technologies(a) 542,800 66,289,450
Keynote Systems(a) 278,900 28,517,525
Legato Systems(a) 2,259,800 100,843,575
Liberate Technologies(a) 199,300 12,506,075
Mercury Interactive(a) 899,600 71,293,300
Microsoft Corp(a) 1,201,700 127,680,625
MicroStrategy Inc Class A Shrs(a) 499,200 43,461,600
National Information Consortium(a) 1,388,600 48,253,850
NetIQ Corp(a) 308,900 20,638,381
Networks Associates(a) 2,451,900 79,073,775
New Era of Networks(a) 738,700 28,993,975
Opus360 Rights(f) 15,325 0
Oracle Corp(a) 1,669,900 130,356,569
Peregrine Systems(a) 1,921,600 128,867,300
Quest Software(a) 628,300 70,840,825
SAP AG Sponsored ADR Representing 1/12 Ord Shr 829,000 49,532,750
Siebel Systems(a) 844,200 100,829,138
SmartForce PLC Sponsored ADR
Representing Ord Shrs(a) 1,877,400 86,125,725
SOFTBANK Corp 100,400 89,568,566
Software.com Inc(a) 563,000 72,556,625
Symantec Corp(a) 539,800 40,552,475
TIBCO Software(a) 886,400 72,241,600
Verio Inc(a) 1,121,700 50,546,606
Vignette Corp(a) 50,100 8,028,525
Xcelera.com Inc(a) 158,400 25,344,000
================================================================================
2,350,638,254
3.58 COMPUTER SYSTEMS
Apple Computer(a) 682,100 92,637,706
Brocade Communications Systems(a) 649,400 116,445,537
Dell Computer(a) 1,984,600 107,044,362
Pacific Century CyberWorks Ltd(a) 6,126,500 14,319,951
================================================================================
330,447,556
1.76 COMPUTERS -- HARDWARE
eMachines Inc(a) 901,100 5,406,600
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Hewlett-Packard Co 459,100 60,859,444
Sun Microsystems(a) 1,030,100 $ 96,523,589
================================================================================
162,789,633
7.08 COMPUTERS -- NETWORKING
Cisco Systems(a) 2,762,160 213,549,495
Internet Capital Group(a) 419,500 37,886,094
Juniper Networks(a) 297,300 78,357,131
MarchFirst Inc(a) 1,546,800 55,201,425
Network Appliance(a) 1,385,600 114,658,400
Redback Networks(a) 171,800 51,529,263
Sycamore Networks(a) 339,000 43,731,000
3Com Corp(a) 1,065,100 59,246,188
================================================================================
654,158,996
3.11 COMPUTERS -- PERIPHERALS
Advanced Digital Information(a) 1,666,400 57,074,200
EMC Corp(a) 959,100 119,887,500
Entrust Technologies(a) 702,400 59,758,875
MTI Technology(a) 621,400 16,389,425
SanDisk Corp(a) 275,000 33,687,500
================================================================================
286,797,500
4.99 ELECTRICAL EQUIPMENT
Celestica Inc(a) 1,644,600 87,266,588
Flextronics International Ltd(a) 1,245,400 87,722,863
Furukawa Electric Ltd 2,279,000 38,329,596
Jabil Circuit(a) 938,200 40,577,150
Sanmina Corp(a) 1,284,800 86,804,300
SCI Systems(a) 926,000 49,830,375
Solectron Corp(a) 1,760,500 70,530,031
================================================================================
461,060,903
21.30 ELECTRONICS -- SEMICONDUCTOR
Altera Corp(a) 1,242,200 110,866,350
Analog Devices(a) 1,048,800 84,493,950
Applied Micro Circuits(a) 1,338,600 200,873,662
Atmel Corp(a) 1,413,800 72,987,425
Broadcom Corp Class A Shrs(a) 67,900 16,491,212
Conexant Systems(a) 826,700 58,695,700
Cypress Semiconductor(a) 1,148,300 56,625,544
Infineon Technologies AG ADR
Representing Ord Shrs(a) 725,300 41,659,419
Intel Corp 768,600 101,407,162
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
LSI Logic(a) 1,259,200 91,449,400
Maxim Integrated Products(a) 1,627,800 $ 115,675,537
Microchip Technology(a) 1,135,400 74,652,550
Motorola Inc 416,820 59,344,748
National Semiconductor(a) 1,185,400 71,864,875
PMC-Sierra Inc(a) 752,400 153,254,475
QLogic Corp(a) 615,000 83,332,500
RF Micro Devices(a) 822,500 110,523,438
SDL Inc(a) 736,500 156,782,438
Texas Instruments 698,200 111,712,000
Viasystems Group(a) 1,519,500 23,552,250
Vitesse Semiconductor(a) 845,200 81,350,500
Xilinx Inc(a) 1,077,800 89,255,313
================================================================================
1,966,850,448
1.45 ENTERTAINMENT
Gemstar International Group Ltd(a) 1,553,300 133,583,800
================================================================================
6.79 EQUIPMENT -- SEMICONDUCTOR
Applied Materials(a) 1,138,200 107,275,350
ASM Lithography Holding NV
New York Registered Shrs(a) 691,100 77,230,425
Credence Systems(a) 669,400 83,758,675
KLA-Tencor Corp(a) 1,061,500 89,431,375
Lam Research(a) 1,853,400 83,518,837
Novellus Systems(a) 1,266,800 71,099,150
Taiwan Semiconductor Manufacturing Ltd Sponsored
ADR Representing 5 Ord Shrs (a) 844,882 48,158,274
Teradyne Inc(a) 807,700 66,433,325
================================================================================
626,905,411
0.47 HEALTH CARE DRUGS -- PHARMACEUTICALS
Elan Corp PLC Sponsored ADR
Representing Ord Shrs(a) 645,400 30,656,500
Human Genome Sciences(a) 153,900 12,783,319
================================================================================
43,439,819
0.34 HEALTH CARE RELATED
Incyte Pharmaceuticals(a) 361,000 31,407,000
================================================================================
0.39 INVESTMENT BANK/BROKER FIRM
B2B Internet HOLDRs Trust(a)(e) 529,000 35,972,000
================================================================================
0.94 MANUFACTURING
Corning Inc 448,100 86,931,400
================================================================================
0.83 NATURAL GAS
Enron Corp 1,027,900 76,964,012
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
5.87 SERVICES
America Online(a) 1,469,700 $ 98,837,325
Ariba Inc(a) 69,100 14,485,087
CMGI Inc(a) 470,200 53,279,537
Diamond Technology Partners(a) 68,000 4,471,000
Proxicom Inc(a) 709,300 31,430,856
Safeguard Scientifics(a) 919,500 64,652,344
Sapient Corp(a) 642,400 53,881,300
TSI International Software Ltd(a) 725,400 60,253,538
VeriSign Inc(a) 358,400 53,580,800
VERITAS Software(a) 817,800 107,131,800
================================================================================
542,003,587
3.36 TELECOMMUNICATIONS -- CELLULAR & WIRELESS
Adaptive Broadband(a) 467,800 25,027,300
Nextel Communications Class A Shrs(a) 548,800 81,359,600
NTT Mobile Communications Network 2,000 82,094,282
Proxim Inc(a) 420,000 50,268,750
Telecom Italia Mobile SpA 2,728,800 33,475,440
Winstar Communications(a) 634,200 38,052,000
================================================================================
310,277,372
0.58 TELECOMMUNICATIONS -- LONG DISTANCE
PSINet Inc(a) 1,575,600 53,595,019
================================================================================
0.88 TELEPHONE
Amdocs Ltd(a) 1,104,720 81,404,055
================================================================================
TOTAL COMMON STOCKS & RIGHTS (Cost $5,142,011,566) 9,215,206,684
================================================================================
0.16 PREFERRED STOCKS
0.00 BIOTECHNOLOGY -- HEALTH CARE
Ingenex Inc, Pfd, Series B Shrs(a)(i) 51,527 31,431
================================================================================
0.16 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Corvis Corp, Pfd, Series H Shrs(a)(i) 186,267 15,000,082
================================================================================
TOTAL PREFERRED STOCKS (Cost $15,300,081) 15,031,513
0.05 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
Repurchase Agreement with State Street dated
3/31/2000 due 4/3/2000 at 5.920%, repurchased
at $4,531,234 (Collateralized by US Treasury
Notes, due 1/31/2003 at 5.500%, value $4,630,178)
(Cost $4,529,000) $ 4,529,000 4,529,000
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $5,161,840,647)
(Cost for Income Tax Purposes $5,169,736,634) $ 9,234,767,197
================================================================================
TELECOMMUNICATIONS FUND
93.64 COMMON STOCKS
3.63 BROADCASTING
EchoStar Communications Class A Shrs(a) 1,651,600 $ 130,476,400
Grupo Televisa SA de CV Sponsored GDR
Representing 2 Ord Participation
Certificates(a) MX 243,000 16,524,000
================================================================================
147,000,400
0.83 CABLE
NTL Inc(a) 360,312 33,441,457
================================================================================
18.68 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
CIENA Corp(a) 374,300 47,208,587
Comverse Technology(a) 522,100 98,676,900
Copper Mountain Networks(a) 520,300 42,632,081
E-Tek Dynamics(a) 107,800 25,359,950
JDS Uniphase(a) 903,800 108,964,387
Metasolv Software(a) 222,500 13,141,406
Metromedia Fiber Network Class A Shrs(a) 582,600 56,330,137
Nokia Corp Sponsored ADR
Representing Ord Shrs FI 469,300 101,955,425
Nortel Networks CA 775,900 97,763,400
QUALCOMM Inc(a) 242,600 36,223,212
Scientific-Atlanta Inc 681,000 43,200,938
Tekelec(a) 923,500 34,284,938
Tellabs Inc 462,400 29,123,975
UTStarcom Inc(a) 275,100 21,474,994
================================================================================
756,340,330
14.55 COMPUTER RELATED
AsiaInfo Holdings(a) 225,500 13,642,750
Cisco Systems(a) 1,341,100 103,683,794
EMC Corp(a) 671,100 83,887,500
Equant NV New York Shrs(a) NL 149,300 12,699,831
Exodus Communications(a) 380,000 53,390,000
Foundry Networks(a) 106,800 15,352,500
Infonet Services Class B Shrs(a) 615,450 13,924,556
Inktomi Corp(a) 324,000 63,180,000
Internap Network Services(a) 489,600 22,521,600
Juniper Networks(a) 215,300 56,745,006
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Microsoft Corp(a) 197,700 $ 21,005,625
Phone.com Inc(a) 144,800 23,620,500
Redback Networks(a) 159,700 47,900,019
Sycamore Networks(a) 179,600 23,168,400
Verio Inc(a) 567,500 25,572,969
Vitria Technology(a) 63,000 6,351,188
World Online International NV(a) NL 115,800 2,587,391
================================================================================
589,233,629
15.78 ELECTRONICS -- SEMICONDUCTOR
Applied Micro Circuits(a) 785,600 117,889,100
Broadcom Corp Class A Shrs(a) 203,800 49,497,925
Conexant Systems(a) 382,800 27,178,800
Motorola Inc 533,365 75,937,842
PMC-Sierra Inc(a) CA 556,500 113,352,094
RF Micro Devices(a) 413,800 55,604,375
SDL Inc(a) 564,900 120,253,088
Texas Instruments 155,600 24,896,000
Vitesse Semiconductor(a) 562,300 54,121,375
================================================================================
638,730,599
2.44 ENTERTAINMENT
Gemstar International Group Ltd(a) 1,149,400 98,848,400
================================================================================
1.25 MANUFACTURING
Corning Inc 261,100 50,653,400
================================================================================
0.51 RETAIL
Tandy Corp 405,900 20,599,425
================================================================================
3.46 SERVICES
America Online(a) 300,000 20,175,000
CMGI Inc(a) 356,400 40,384,575
CSG Systems International(a) 884,500 43,174,656
Yahoo! Inc(a) 211,200 36,194,400
================================================================================
139,928,631
10.70 TELECOMMUNICATIONS-- CELLULAR & WIRELESS
Aether Systems(a) 59,600 10,817,400
China Telecom Ltd(a) HK 4,479,000 39,259,199
Crown Castle International(a) 610,500 23,122,687
Dobson Communications(a) 355,200 8,169,600
Leap Wireless International(a) 238,300 23,517,231
Nextel Communications Class A Shrs(a) 271,350 40,227,637
NTT Mobile Communications Network JA 1,690 69,369,668
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
Partner Communications Ltd ADR
Representing Ord Shrs(a) IS 727,550 $ 12,095,519
Telecom Italia Mobile SpA IT 2,600,200 31,897,845
Teligent Inc Class A Shrs(a) 146,450 9,784,691
Vodafone AirTouch PLC UK 17,098,534 95,061,361
VoiceStream Wireless(a) 309,000 39,803,063
Winstar Communications(a) 500,400 30,024,000
================================================================================
433,149,901
8.02 TELECOMMUNICATIONS -- LONG DISTANCE
Allegiance Telecom(a) 483,100 38,949,937
AT&T Corp 643,120 36,175,500
FirstWorld Communications Class B Shrs(a) 185,400 3,777,525
Global Crossing Ltd(a) BD 401,021 16,416,797
Global TeleSystems Group(a) 888,600 18,216,300
GT Group Telecom Class B Shrs(a) CA 432,700 9,032,613
ITC DeltaCom(a) 175,200 6,241,500
KPNQwest NV Class C Shrs(a) NL 428,200 23,229,850
Nippon Telegraph & Telephone JA 2,600 41,320,138
PSINet Inc 1,325,400 45,084,309
Qwest Communications International(a) 730,500 35,429,250
Sprint Corp 528,800 33,314,400
Viatel Inc(a) 350,000 17,565,625
================================================================================
324,753,744
13.79 TELEPHONE
Amdocs Ltd(a) 1,201,000 88,498,688
AT&T Canada Class B Depository
Receipts(a) CA 918,600 56,034,600
BellSouth Corp 602,400 28,312,800
Cable & Wireless PLC UK 1,729,300 32,498,102
COLT Telecom Group PLC(a) UK 271,000 12,904,940
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) UK 236,100 46,718,288
Covad Communications Group(a) 253,500 18,378,750
Hanaro Telecom Sponsored ADR
Representing Ord Shrs(a) KS 1,108,600 17,044,725
Illuminet Holdings(a)(b) 342,300 16,852,927
Koninklijke NV(a) NL 68,400 7,831,327
McLeodUSA Inc Class A Shrs(a) 516,500 43,805,656
Net2000 Communications(a) 101,100 2,401,125
NEXTLINK Communications Class A Shrs(a) 278,800 34,484,075
RCN Corp(a) 546,500 29,442,687
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
SBC Communications 1,047,586 $ 43,998,612
Tele1 Europe Holding AB(a) SW 496,400 9,393,681
Time Warner Telecom Class A Shrs(a) 318,100 25,288,950
US WEST 610,200 44,315,775
================================================================================
558,205,708
TOTAL COMMON STOCKS (Cost $2,114,169,068) 3,790,885,624
================================================================================
0.50 PREFERRED STOCKS
0.15 COMMUNICATIONS -- EQUIPMENT & MANUFACTURING
Corvis Corp, Pfd, Series H Shrs(a)(i) 74,505 5,999,888
================================================================================
0.35 TELECOMMUNICATIONS -- LONG DISTANCE
IXC Communications, Jr Exchangeable Pfd
Series B Shrs(g), 12.500% 13,626 14,171,040
================================================================================
TOTAL PREFERRED STOCKS (Cost $21,158,813) 20,170,928
================================================================================
0.23 FIXED INCOME SECURITIES
0.23 CORPORATE BONDS
0.23 TELECOMMUNICATIONS -- LONG DISTANCE
Esat Telecom Group PLC
Sr Notes, Series B, 11.875%,
12/1/2008 IE $ 2,500,000 2,912,500
Sr Step-up Notes, Zero Coupon,
(h) 2/1/2007 IE $ 7,154,000 6,438,600
================================================================================
TOTAL FIXED INCOME SECURITIES (Cost $9,490,080) 9,351,100
================================================================================
5.63 SHORT-TERM INVESTMENTS
1.48 COMMERCIAL PAPER
0.74 CONSUMER FINANCE
General Motors Acceptance, 6.250%, 4/3/2000 $30,000,000 30,000,000
================================================================================
0.74 FINANCIAL
Wells Fargo & Co, 6.080%, 4/3/2000 $30,000,000 29,989,860
================================================================================
TOTAL COMMERCIAL PAPER (Cost $59,989,860) 59,989,860
================================================================================
3.96 Investment Companies
INVESCO Treasurer's Series Money Market Reserve Fund
5.884% (Cost $160,490,475) 160,490,475 160,490,475
================================================================================
0.19 Repurchase Agreements
Repurchase Agreement with State Street date
3/31/2000 due 4/3/2000 at 5.920%,
repurchased at $7,526,711 (Collateralized
by US Treasury Inflationary Index Notes,
due 1/15/2009 at 3.875%, value $7,673,737)
(Cost $7,523,000) $ 7,523,000 7,523,000
================================================================================
TOTAL SHORT TERM INVESTMENTS (Cost $228,003,335) 228,003,335
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $2,372,821,296)
(Cost for Income Tax Purposes $2,373,412,075) $ 4,048,410,987
================================================================================
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
UTILITIES FUND
90.96 COMMON STOCKS
0.54 COMMUNICATIONS-- EQUIPMENT & MANUFACTURING
Lucent Technologies 22,800 $ 1,385,100
================================================================================
0.50 COMPUTER RELATED
Infonet Services Class B Shrs(a) 57,700 1,305,462
================================================================================
20.60 TELECOMMUNICATIONS
AT&T Corp 60,600 3,408,750
Crown Castle International(a) 147,400 5,582,775
GTE Corp 81,800 5,807,800
ITC DeltaCom(a) 16,000 570,000
MCI WorldCom(a) 96,735 4,383,305
Nextel Communications Class A Shrs(a) 41,900 6,211,675
Qwest Communications International(a) 117,102 5,679,447
Sprint Corp 152,000 9,576,000
Vodafone Airtouch PLC UK 2,211,172 12,293,277
================================================================================
53,513,029
69.32 UTILITIES
22.24 ELECTRIC
AES Corp(a) 61,400 4,835,250
Alliant Energy 165,146 5,026,631
Calpine Corp(a) 69,700 6,551,800
Consolidated Edison 67,000 1,943,000
Constellation Energy Group 84,200 2,683,875
Duke Energy 70,809 3,717,472
FPL Group 29,600 1,363,450
GPU Inc 33,700 922,537
Montana Power 166,600 10,662,400
PG&E Corp 55,800 1,171,800
Pinnacle West Capital 58,700 1,654,606
Reliant Energy 96,600 2,264,063
SCANA Corp 181,100 4,448,269
Scottish Power PLC Sponsord ADR
Representing 4 Ord Shrs UK 117,710 3,729,936
Texas Utilities 100,400 2,980,625
Unicom Corp 104,600 3,817,900
================================================================================
57,773,614
7.13 NATURAL GAS
Coastal Corp 94,000 4,324,000
Columbia Energy Group 39,000 2,310,750
Enron Corp 84,000 6,289,500
<PAGE>
SHARES,
COUNTRY UNITS OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
ONEOK Inc 51,000 $ 1,275,000
Williams Cos 98,000 4,305,875
================================================================================
18,505,125
39.95 TELEPHONE
ALLTEL Corp 87,000 5,486,437
Amdocs Ltd(a) 124,500 9,174,094
AT&T Canada Class B Shrs
Depository Receipts(a) CA 394,000 24,034,000
BellSouth Corp 161,800 7,604,600
Cable & Wireless PLC UK 120,000 2,255,116
Citizens Utilities Class B Shrs(a) 303,800 4,974,725
COLT Telecom Group PLC Sponsored ADR
Representing 4 Ord Shrs(a) UK 64,700 12,802,513
Koninklijke NV(a) NL 4,300 492,320
McLeodUSA Inc Class A Shrs(a) 122,700 10,406,494
SBC Communications 229,112 9,622,704
Telefonica SA Sponsored ADR
Representing 3 Ord Shrs(a) SP 125,025 9,329,991
Time Warner Telecom Class A Shrs(a) 14,800 1,176,600
US WEST 88,300 6,412,788
================================================================================
103,772,382
TOTAL UTILITIES 180,051,121
================================================================================
TOTAL COMMON STOCKS (Cost $126,266,337) 236,254,712
================================================================================
9.04 SHORT-TERM INVESTMENTS
4.77 COMMERCIAL PAPER
4.77 FINANCIAL
American General Finance, 6.240%, 4/3/2000
(Cost $12,390,000) $12,390,000 12,390,000
================================================================================
3.89 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund
5.884% (Cost $10,093,535) 10,093,535 10,093,535
================================================================================
0.38 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 3/31/2000 due 4/3/2000 at 5.920%,
repurchased at $1,000,493 (Collateralized
by US Treasury Inflationary Index Notes,
due 1/15/2009 at 3.875%, value $1,020,611)
(Cost $1,000,000) $ 1,000,000 1,000,000
================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $23,483,535) 23,483,535
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $149,749,872)
(Cost for Income Tax Purposes $149,750,549) $ 259,738,247
================================================================================
<PAGE>
(a) Security is non-income producing.
(b) Security is an affiliated company (See Notes).
(c) Represents troy ounces.
(d) Rate is subject to change. Rate shown reflects current rate.
(e) HOLDRs -- Holding Company Depository Receipts.
(f) Security has no market value at March 31, 2000.
(g) Security is a payment-in-kind (PIK) security. PIK securities may make
interest payments in additional securities.
(h)Step-up bonds are obligations which increase the interest payment rate at a
specified point in time. Rate shown reflects current rate which may step up
at a future date.
(i) The following are restricted securities at March 31, 2000:
SCHEDULE OF RESTRICTED OR ILLIQUID SECURITIES
VALUE AS
ACQUISITION ACQUISITION %OF
DESCRIPTION DATE(S) COST NET ASSETS
- --------------------------------------------------------------------------------
HEALTH SCIENCES FUND
Amylin Pharmaceuticals 2/24/00 $ 3,540,000 0.22 %
Ecogen Technologies I 11/18/92-
1/28/94 1,140,000 0.00
Ingenex Inc, Pfd, Series B Shrs 9/27/94 600,000 0.00
Janus Biomedical, Conv Pfd, Series A Shrs 3/2/94 1,000,000 0.00
MedClone Trust 9/30/97 101,310 0.00
MedClone Trust, Conv Pfd, Series G Shrs 10/21/93 1,000,001 0.00
Mediconsult.com Inc 12/31/99 897,145 0.12
Mediconsult.com Inc
Bridge Notes, 12.000%, 10/31/2000 6/10/98 292,070 0.02
Escrowed Shrs 12/31/99 66,455 0.01
NPS Pharmaceuticals 3/9/00 7,160,400 0.50
Osiris Therapeutics, Conv Pfd,
Series C Shrs 5/26/94 1,300,000 0.08
Pharmacopiea Inc 3/7/00 17,136,000 0.74
Targeted Genetics 3/1/00 3,416,000 0.19
Titan Pharmaceuticals 3/1/00 6,463,575 0.32
Xenometrix Inc 1/7/94 1,163,691 0.02
================================================================================
2.22 %
================================================================================
TECHNOLOGY FUND
Corvis Corp, Pfd, Series H Shrs 12/16/99 $15,000,082 0.16 %
Ingenex Inc, Pfd, Series B Shrs 9/27/94 300,000 0.00
================================================================================
0.16 %
================================================================================
TELECOMMUNICATIONS FUND
Corvis Corp, Pfd, Series H Shrs 12/16/99 $ 5,999,888 0.15 %
<PAGE>
SUMMARY OF INVESTMENTS BY COUNTRY
% OF
COUNTRY INVESTMENT
COUNTRY CODE SECURITIES VALUE
- --------------------------------------------------------------------------------
GOLD FUND
Canada CA 55.05% $ 40,441,479
France FR 0.66 482,160
South Africa SF 5.65 4,153,750
United States US 38.64 28,386,788
================================================================================
100.00% $ 73,464,177
================================================================================
LEISURE FUND
Australia AS 1.05% $ 5,719,400
Canada CA 1.71 9,257,750
Germany GM 0.23 1,278,036
Hong Kong HK 0.51 2,748,122
Netherlands NL 2.45 13,275,208
South Africa SF 0.81 4,408,588
Switzerland SZ 3.31 17,982,995
United Kingdom UK 2.93 15,913,777
United States US 87.00 472,219,704
================================================================================
100.00% $ 542,803,580
================================================================================
TELECOMMUNICATIONS FUND
Bermuda BD 0.41% $ 16,416,797
Canada CA 6.82 276,182,707
Finland FI 2.52 101,955,425
Hong Kong HK 0.97 39,259,199
Ireland IE 0.23 9,351,100
Israel IS 0.30 12,095,519
Italy IT 0.79 31,897,845
Japan JA 2.73 110,689,806
Republic of South Korea KS 0.42 17,044,725
Mexico MX 0.41 16,524,000
Netherlands NL 1.15 46,348,399
Sweden SW 0.23 9,393,681
United Kingdom UK 4.62 187,182,691
United States US 78.40 3,174,069,093
================================================================================
100.00% $4,048,410,987
================================================================================
UTILITIES FUND
Canada CA 9.25% $ 24,034,000
Netherlands NL 0.19 492,320
Spain SP 3.59 9,329,991
United Kingdom UK 11.97 31,080,842
United States US 75.00 194,801,094
================================================================================
100.00% $ 259,738,247
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL
ENERGY SERVICES
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 183,994,578 $ 889,262,502
=============================================================================================================================
At Value(a) $ 235,651,144 $ 1,109,247,326
Cash 55,985 1,367
Foreign Currency (Cost $0 and $710,663, respectively) 0 713,347
Receivables:
Investment Securities Sold 627,314 10,168,840
Fund Shares Sold 4,353,466 19,522,591
Dividends and Interest 90,944 1,238,331
Prepaid Expenses and Other Assets 58,166 60,953
=============================================================================================================================
TOTAL ASSETS 240,837,019 1,140,952,755
=============================================================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 0 32,155
Investment Securities Purchased 11,817,584 5,218,384
Fund Shares Repurchased 7,525,584 1,962,452
Accrued Distribution Expenses - Investor Class 38,270 207,094
Accrued Distribution Expenses - Class C 4 39
Accrued Expenses and Other Payables 7,826 44,330
=============================================================================================================================
TOTAL LIABILITIES 19,389,268 7,464,454
=============================================================================================================================
NET ASSETS AT VALUE $ 221,447,751 $ 1,133,488,301
=============================================================================================================================
NET ASSETS
Paid-in Capital(b) $ 189,833,784 $ 896,102,701
Accumulated Undistributed (Distributions in Excess of)
Net Investment Loss (16,462) (65,712)
Accumulated Undistributed Net Realized Gain (Loss) on Investment
Securities and Foreign Currency Transactions (20,026,137) 17,460,315
Net Appreciation of Investment Securities and
Foreign Currency Transactions 51,656,566 219,990,997
=============================================================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 221,447,751 $ 1,133,488,301
=============================================================================================================================
Net Assets at Value:
Investor Class $ 221,431,872 $ 1,133,350,196
=============================================================================================================================
Class C $ 15,879 $ 138,105
=============================================================================================================================
Shares Outstanding
Investor Class 12,723,721 41,773,557
Class C 913 5,104
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 17.40 $ 27.13
Class C $ 17.39 $ 27.06
=============================================================================================================================
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
(a) Investment securities at cost and value at March 31, 2000 include
repurchase agreements of $15,708,000 and $4,062,000 for Energy and
Financial Services Funds, respectively.
(b) The Fund has three billion authorized shares of common stock, par value
$0.01 per share. Of such shares, 200 million have been allocated to Energy
Fund and 200 million to Financial Services Fund: 100 million to each
Investor Class and 100 million to each Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
HEALTH
GOLD SCIENCES
FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a)(b) $ 87,901,263 $ 1,282,642,088
================================================================================
At Value(a)(b) $ 73,464,177 $ 1,523,018,684
Cash 0 9,836
Receivables:
Investment Securities Sold 5,524,431 142,235,212
Fund Shares Sold 2,974,360 11,802,780
Dividends and Interest 136,388 758,496
Prepaid Expenses and Other Assets 47,224 151,802
================================================================================
TOTAL ASSETS 82,146,580 1,677,976,810
================================================================================
LIABILITIES
Payables:
Custodian 342,892 0
Investment Securities Purchased 0 52,386,696
Fund Shares Repurchased 276,541 2,031,577
Accrued Distribution Expenses - Investor Class 17,879 412,392
Accrued Distribution Expenses - Class C 1 236
Accrued Expenses and Other Payables 38,234 52,546
================================================================================
TOTAL LIABILITIES 675,547 54,883,447
================================================================================
NET ASSETS AT VALUE $ 81,471,033 $ 1,623,093,363
================================================================================
NET ASSETS
Paid-in Capital(c) $ 291,433,408 $ 1,302,394,510
Accumulated Undistributed (Distributions
in Excess of) Net Investment Loss (1,039,958) (4,006,163)
Accumulated Undistributed Net Realized Gain (Loss)
on Investment Securities and Foreign
Currency Transactions (194,485,330) 84,338,104
Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions (14,437,087) 240,366,912
================================================================================
Net Assets at Value, Applicable to Shares Outstanding
$ 81,471,033 $ 1,623,093,363
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 81,470,121 $ 1,622,623,778
================================================================================
Class C $ 912 $ 469,585
================================================================================
Shares Outstanding
Investor Class 50,995,719 29,226,181
Class C 572 8,461
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 1.60 $ 55.52
Class C $ 1.60 $ 55.50
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
(a)Investment securities at cost and value at March 31, 2000 include repurchase
agreements of $2,928,000 and $11,100,000 for Gold and Health Sciences Funds,
respectively.
(b)Investment securities at March 31, 2000 include gold bullion cost of
$9,475,205 and value of $9,342,851 for Gold Fund.
(c)The Fund has three billion authorized shares of common stock, par value
$0.01 per share. Of such shares, 400 million have been allocated to Gold Fund
and 200 million to Health Sciences Fund: 200 million to Gold Fund - Investor
Class and 200 million to Gold Fund - Class C; and 100 million to Health
Sciences Fund - Investor Class and 100 million to Health Sciences Fund -
Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
REAL ESTATE
LEISURE OPPORTUNITY
FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 332,435,564 $ 17,306,878
================================================================================
At Value(a) $ 542,803,580 $ 17,747,642
Cash 0 1,404,760
Receivables:
Investment Securities Sold 4,070,187 0
Fund Shares Sold 3,456,006 1,628,718
Dividends and Interest 364,196 129,597
Prepaid Expenses and Other Assets 60,932 22,097
================================================================================
TOTAL ASSETS 550,754,901 20,932,814
================================================================================
LIABILITIES
Payables:
Custodian 29,842 0
Distributions to Shareholders 0 10,572
Investment Securities Purchased 439,038 595,567
Fund Shares Repurchased 555,257 130,902
Accrued Distribution Expenses - Investor Class 112,910 3,910
Accrued Distribution Expenses - Class C 27 29
Accrued Expenses and Other Payables 10,522 3,432
================================================================================
TOTAL LIABILITIES 1,147,596 744,412
================================================================================
NET ASSETS AT VALUE $ 549,607,305 $ 20,188,402
================================================================================
NET ASSETS
Paid-in Capital(b) $ 285,821,924 $ 28,926,716
Accumulated Undistributed (Distributions in Excess of)
Net Investment Income (Loss) (25,987) 4,749
Accumulated Undistributed Net Realized Gain (Loss)
on Investment Securities and Foreign
Currency Transactions 53,443,532 (9,183,827)
Net Appreciation of Investment Securities and
Foreign Currency Transactions 210,367,836 440,764
================================================================================
Net Assets at Value, Applicable to Shares Outstanding
$ 549,607,305 $ 20,188,402
================================================================================
NET ASSETS AT VALUE:
================================================================================
Investor Class $ 549,523,415 $ 20,045,583
================================================================================
Class C $ 83,890 $ 142,819
================================================================================
Shares Outstanding
Investor Class 11,662,850 3,024,946
Class C 1,781 21,585
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 47.12 $ 6.63
Class C 47.09 $ 6.62
================================================================================
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
(a)Investment securities at cost and value at March 31, 2000 includes a
repurchase agreement of $660,000 for Real Estate Opportunity Fund.
(b)The Fund has three billion authorized shares of common stock, par value
$0.01 per share. Of such shares, 200 million have been allocated to Leisure
Fund and 200 million to Real Estate Opportunity Fund: 100 million to each
Investor Class and 100 million to each Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
<TABLE>
<CAPTION>
TECHNOLOGY TELECOMMUNICATIONS
FUND FUND
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 5,161,840 $ 2,372,821,296
====================================================================================================
At Value(a) $ 9,234,767,197 $ 4,048,410,987
Receivables:
Investment Securities Sold 161,018,633 44,320,000
Fund Shares Sold 162,131,451 67,655,248
Dividends and Interest 1,880,369 760,006
Prepaid Expenses and Other Assets 570,695 380,623
====================================================================================================
TOTAL ASSETS 9,560,368,345 4,161,526,864
====================================================================================================
LIABILITIES
Payables:
Custodian 1,455 62,629
Investment Securities Purchased 44,178,246 20,766,158
Fund Shares Repurchased 24,363,776 11,368,070
Accrued Distribution Expenses - Investor Class 1,147,054 877,189
Accrued Distribution Expenses - Class C 1,729 1,152
Accrued Expenses and Other Payables 99,426 31,578
====================================================================================================
TOTAL LIABILITIES 69,791,686 33,106,776
====================================================================================================
NET ASSETS AT VALUE $ 9,490,576,659 $ 4,128,420,088
====================================================================================================
NET ASSETS
Paid-in Capital(b) $ 5,164,137,129 $ 2,358,881,819
Accumulated Undistributed (Distributions in Excess of)
Net Investment Loss (91,573) (20,724)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency Transactions 253,601,619 93,967,766
Net Appreciation of Investment Securities and Foreign
Currency Transactions 4,072,929,484 1,675,591,227
====================================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 9,490,576,659 $ 4,128,420,088
====================================================================================================
NET ASSETS AT VALUE:
Institutional Class $ 4,453,520,224 --
====================================================================================================
Investor Class $ 5,034,086,538 $ 4,125,890,358
====================================================================================================
Class C $ 2,969,897 $ 2,529,730
====================================================================================================
Shares Outstanding
Institutional Class 43,427,817 --
Investor Class 49,390,319 64,050,375
Class C 29,160 39,298
NET ASSET VALUE, Offering and Redemption Price per Share
Institutional Class $ 102.55 --
Investor Class $ 101.92 $ 64.42
Class C $ 101.85 $ 64.37
====================================================================================================
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
(a) Investment securities at cost and value at March 31, 2000 include
repurchase agreements of $4,529,000 and $7,523,000 for Technology and
Telecommunications Funds, respectively.
(b) The Fund has three billion authorized shares of common stock, par value
$0.01 per share. Of such shares, 300 million have been allocated to
Technology Fund and 400 million to Telecommunications Fund: 100 million to
Technology Fund - Investor Class, 100 million to Technology Fund -
Institutional Class and 100 million to Technology Fund Class C; and 200
million to Telecommunications Fund - Investor Class and 200 million to
Telecommunications Fund - Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO SECTOR FUNDS, INC.
MARCH 31, 2000
UTILITIES
FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 149,749,872
================================================================================
At Value(a) $ 259,738,247
Receivables:
Fund Shares Sold 1,325,824
Dividends and Interest 294,057
Prepaid Expenses and Other Assets 45,088
================================================================================
TOTAL ASSETS 261,403,216
================================================================================
LIABILITIES
Payables:
Custodian 570
Distributions to Shareholders 4,470
Fund Shares Repurchased 534,434
Accrued Distribution Expenses - Investor Class 54,963
Accrued Distribution Expenses - Class C 163
Accrued Expenses and Other Payables 7,292
================================================================================
TOTAL LIABILITIES 601,892
================================================================================
NET ASSETS AT VALUE $ 260,801,324
================================================================================
NET ASSETS
Paid-in Capital(b) $ 142,555,878
Accumulated Undistributed Net Investment Loss (14,678)
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency Transactions 8,271,749
Net Appreciation of Investment Securities and Foreign
Currency Transactions 109,988,375
================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 260,801,324
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 260,553,704
================================================================================
Class C $ 247,620
================================================================================
Shares Outstanding
Investor Class 12,759,750
Class C 12,138
NET ASSET VALUE, Offering and Redemption Price per Share
Investor Class $ 20.42
Class C $ 20.40
================================================================================
(a)Investment securities at cost and value at March 31, 2000 includes a
repurchase agreement of $1,000,000.
(b)The Fund has three billion authorized shares of common stock, par value
$0.01 per share. Of such shares, 200 million have been allocated to Utilities
Fund: 100 million to Investor Class and 100 million to Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
ENERGY FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 848,487 $ 2,395,544
Interest 124,823 276,249
Foreign Taxes Withheld (6,249) (13,193)
================================================================================
TOTAL INCOME 967,061 2,658,600
================================================================================
EXPENSES
Investment Advisory Fees 539,874 1,236,589
Distribution Expenses
Investor Class 179,957 425,204
Class C 4 --
Transfer Agent Fees 295,831 773,666
Administrative Fees 36,559 64,206
Custodian Fees and Expenses 10,288 27,483
Directors' Fees and Expenses 8,601 16,372
Interest Expense 48,048 14,939
Professional Fees and Expenses 12,614 17,534
Registration Fees and Expenses - Investor Class 17,727 37,767
Reports to Shareholders 19,868 156,122
Other Expenses 2,136 5,656
================================================================================
TOTAL EXPENSES 1,171,507 2,775,538
Fees and Expenses Paid Indirectly (10,288) (33,949)
================================================================================
NET EXPENSES 1,161,219 2,741,589
================================================================================
NET INVESTMENT LOSS (194,158) (82,989)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 8,756,728 6,819,439
Foreign Currency Transactions 0 (15,203)
================================================================================
Total Net Realized Gain 8,756,728 6,804,236
================================================================================
Change in Net Appreciation of
Investment Securities 32,665,684 18,193,660
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 41,422,412 24,997,896
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 41,228,254 $ 24,914,907
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
FINANCIAL SERVICES FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
2000 1999
(Note 1)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 5,367,276 $ 16,987,514
Interest 1,497,683 3,376,617
Foreign Taxes Withheld (17,190) (221,224)
================================================================================
TOTAL INCOME 6,847,769 20,142,907
================================================================================
EXPENSES
Investment Advisory Fees 2,859,568 8,448,427
Distribution Expenses
Investor Class 1,101,582 3,362,922
Class C 41 --
Transfer Agent Fees 1,354,867 3,485,376
Administrative Fees 202,453 383,458
Custodian Fees and Expenses 41,033 219,546
Directors' Fees and Expenses 34,078 69,446
Interest Expense 1,994 20,027
Professional Fees and Expenses 23,829 52,036
Registration Fees and Expenses - Investor Class 48,464 169,936
Reports to Shareholders 92,872 698,482
Other Expenses 11,904 47,775
================================================================================
TOTAL EXPENSES 5,772,685 16,957,431
Fees and Expenses Paid Indirectly (41,659) (228,582)
================================================================================
NET EXPENSES 5,731,026 16,728,849
================================================================================
NET INVESTMENT INCOME 1,116,743 3,414,058
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 18,636,726 110,696,938
Foreign Currency Transactions (18,979) (3,992,343)
================================================================================
Total Net Realized Gain 18,617,747 106,704,595
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities (24,507,839) 66,360,947
Foreign Currency Transactions (55,495) (3,286,753)
================================================================================
Total Net Appreciation (Depreciation) (24,563,334) 63,074,194
================================================================================
NET GAIN (LOSS) ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS (5,945,587) 169,778,789
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (4,828,844) $ 173,192,847
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
GOLD FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 408,876 $ 361,271
Interest 98,946 213,834
Foreign Taxes Withheld (20,731) (36,714)
================================================================================
TOTAL INCOME 487,091 538,391
================================================================================
EXPENSES
Investment Advisory Fees 282,724 767,252
Distribution Expenses
Investor Class 95,891 269,862
Class C 1 --
Transfer Agent Fees 309,209 840,794
Administrative Fees 21,130 39,652
Custodian Fees and Expenses 13,274 48,675
Directors' Fees and Expenses 6,549 13,994
Interest Expense 10,927 31,584
Professional Fees and Expenses 13,837 18,231
Registration Fees and Expenses - Investor Class 15,641 41,086
Reports to Shareholders 22,910 172,286
Other Expenses 1,241 9,306
================================================================================
TOTAL EXPENSES 793,334 2,252,722
Fees and Expenses Paid Indirectly (17,071) (75,289)
================================================================================
NET EXPENSES 776,263 2,177,433
================================================================================
NET INVESTMENT LOSS (289,172) (1,639,042)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Loss on:
Investment Securities (25,229,904) (30,067,989)
Foreign Currency Transactions (2,709,338) (1,952,631)
================================================================================
Total Net Realized Loss (27,939,242) (32,020,620)
================================================================================
Change in Net Appreciation of:
Investment Securities 11,139,812 23,489,415
Foreign Currency Transactions 3,292,986 4,620,706
================================================================================
Total Net Appreciation 14,432,798 28,110,121
================================================================================
NET LOSS ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS (13,506,444) (3,910,499)
================================================================================
NET DECREASE IN NET ASSETS FROM OPERATIONS $(13,795,616) $ (5,549,541)
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
HEALTH SCIENCES FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 3,707,092 $ 12,902,180
Interest 3,149,913 7,299,828
Foreign Taxes Withheld (17,783) (249,185)
================================================================================
TOTAL INCOME 6,839,222 19,952,823
================================================================================
EXPENSES
Investment Advisory Fees 4,323,543 9,661,782
Distribution Expenses
Investor Class 1,770,501 3,914,446
Class C 242 --
Transfer Agent Fees 1,692,385 3,728,045
Administrative Fees 322,868 465,978
Custodian Fees and Expenses 77,890 209,313
Directors' Fees and Expenses 41,298 71,913
Interest Expense 1,969 12,030
Professional Fees and Expenses 26,617 63,253
Registration Fees and Expenses - Investor Class 64,861 129,416
Reports to Shareholders 127,439 808,800
Other Expenses 15,202 46,368
================================================================================
TOTAL EXPENSES 8,464,815 19,111,344
Fees and Expenses Paid Indirectly (79,484) (206,287)
================================================================================
NET EXPENSES 8,385,331 18,905,057
================================================================================
NET INVESTMENT INCOME (LOSS) (1,546,109) 1,047,766
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 95,070,616 161,920,608
Foreign Currency Transactions 2,073,241 (6,379,464)
Total Net Realized Gain 97,143,857 155,541,144
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities (10,947,447) (56,836,634)
Foreign Currency Transactions (1,416,961) 6,369,060
================================================================================
Total Net Depreciation (12,364,408) (50,467,574)
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 84,779,449 105,073,570
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 83,233,340 $ 106,121,336
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
LEISURE FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 968,962 $ 1,773,834
Interest 400,730 791,997
Foreign Taxes Withheld (11,053) (40,664)
================================================================================
TOTAL INCOME 1,358,639 2,525,167
================================================================================
EXPENSES
Investment Advisory Fees 1,565,828 2,538,217
Distribution Expenses
Investor Class 546,328 853,746
Class C 30 --
Transfer Agent Fees 474,516 958,999
Administrative Fees 102,507 117,284
Custodian Fees and Expenses 44,657 94,630
Directors' Fees and Expenses 13,684 20,276
Interest Expense 1,167 0
Professional Fees and Expenses 18,463 24,394
Registration Fees and Expenses - Investor Class 25,163 47,447
Reports to Shareholders 40,086 243,782
Other Expenses 4,339 9,693
================================================================================
TOTAL EXPENSES 2,836,768 4,908,468
Fees and Expenses Paid Indirectly (38,809) (63,162)
================================================================================
NET EXPENSES 2,797,959 4,845,306
================================================================================
NET INVESTMENT LOSS (1,439,320) (2,320,139)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 56,165,532 36,753,141
Foreign Currency Transactions (516,282) (125,352)
================================================================================
Total Net Realized Gain 55,649,250 36,627,789
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 24,609,315 124,880,602
Foreign Currency Transactions (1,403,003) (2,284,298)
================================================================================
Total Net Appreciation 23,206,312 122,596,304
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 78,855,562 159,224,093
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 77,416,242 $ 156,903,954
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
REAL ESTATE OPPORTUNITY FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 JULY 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 773,868 $ 1,050,159
Interest 55,534 110,326
Foreign Taxes Withheld (1,575) (392)
================================================================================
TOTAL INCOME 827,827 1,160,093
================================================================================
EXPENSES
Investment Advisory Fees 90,106 157,568
Distribution Expenses
Investor Class 30,028 52,522
Class C 29 --
Transfer Agent Fees 113,003 219,575
Administrative Fees 12,073 14,814
Custodian Fees and Expenses 6,486 16,043
Directors' Fees and Expenses 6,300 9,479
Interest Expense 2,699 0
Professional Fees and Expenses 17,944 19,233
Registration Fees and Expenses - Investor Class 26,955 34,587
Reports to Shareholders 23,626 52,780
Other Expenses 743 1,683
================================================================================
TOTAL EXPENSES 329,992 578,284
Fees and Expenses Absorbed by Investment Adviser (167,375) (296,226)
Fees and Expenses Paid Indirectly (5,256) (9,164)
================================================================================
NET EXPENSES 157,361 272,894
================================================================================
NET INVESTMENT INCOME 670,466 887,199
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities (1,571,098) (7,221,719)
Foreign Currency Transactions 0 7,103
================================================================================
Total Net Realized Loss (1,571,098) (7,214,616)
================================================================================
Change in Net Appreciation of:
Investment Securities 1,039,189 3,441,428
Foreign Currency Transactions 0 27,723
================================================================================
Total Net Appreciation 1,039,189 3,469,151
================================================================================
NET LOSS ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS (531,909) (3,745,465)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 138,557 $ (2,858,266)
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
TECHNOLOGY FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 1,228,414 $ 1,618,524
Dividends from Affiliated Investment Companies 1,767,087 --
Interest 8,143,874 5,299,607
Foreign Taxes Withheld (92,224) (84,619)
================================================================================
TOTAL INCOME 11,047,151 6,833,512
================================================================================
EXPENSES
Investment Advisory Fees 12,874,575 10,576,104
Distribution Expenses
Investor Class 3,869,367 3,489,968
Class C 1,897 --
Transfer Agent Fees 2,178,146 3,515,997
Administrative Fees 1,239,130 579,399
Custodian Fees and Expenses 215,712 191,395
Directors' Fees and Expenses 75,751 68,870
Professional Fees and Expenses 55,638 57,533
Registration Fees and Expenses
Institutional Class 27,968 35,071
Investor Class 57,238 101,032
Reports to Shareholders 119,464 690,583
Other Expenses 28,222 45,143
================================================================================
TOTAL EXPENSES 20,743,108 19,351,095
Fees and Expenses Paid Indirectly (187,276) (130,878)
================================================================================
NET EXPENSES 20,555,832 19,220,217
================================================================================
NET INVESTMENT LOSS (9,508,681) (12,386,705)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 272,767,421 341,709,239
Foreign Currency Transactions 0 43,030
================================================================================
Total Net Realized Gain 272,767,421 341,752,269
================================================================================
Change in Net Appreciation of:
Investment Securities 2,968,698,936 928,039,143
Foreign Currency Transactions 3,828,354 2,433,196
================================================================================
Total Net Appreciation 2,972,527,290 930,472,339
================================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 3,245,294,711 1,272,224,608
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,235,786,030 $ 1,259,837,903
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
TELECOMMUNICATIONS FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 JULY 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 2,332,766 $ 1,694,795
Dividends from Affiliated Investment Companies 1,440,475 --
Interest 5,674,193 2,013,945
Foreign Taxes Withheld (88,068) (62,432)
================================================================================
TOTAL INCOME 9,359,366 3,646,308
================================================================================
EXPENSES
Investment Advisory Fees 7,284,136 3,079,599
Distribution Expenses
Investor Class 3,496,052 1,233,307
Class C 1,223 --
Transfer Agent Fees 1,967,242 1,211,700
Administrative Fees 636,011 145,056
Custodian Fees and Expenses 190,032 72,543
Directors' Fees and Expenses 41,376 21,879
Professional Fees and Expenses 51,352 37,762
Registration Fees and Expenses - Investor Class 139,896 98,193
Reports to Shareholders 292,546 224,344
Other Expenses 21,814 18,954
================================================================================
TOTAL EXPENSES 14,121,680 6,143,337
Fees and Expenses Paid Indirectly (168,284) (48,993)
================================================================================
NET EXPENSES 13,953,396 6,094,344
================================================================================
NET INVESTMENT LOSS (4,594,030) (2,448,036)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 103,120,414 2,869,599
Foreign Currency Transactions 101,480 (1,168,817)
================================================================================
Total Net Realized Gain 103,221,894 1,700,782
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 1,387,380,211 245,426,818
Foreign Currency Transactions 471,412 (102,416)
================================================================================
Total Net Appreciation 1,387,851,623 245,324,402
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 1,491,073,517 247,025,184
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,486,479,487 $ 244,577,148
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
UTILITIES FUND
PERIOD YEAR
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000 1999
(Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 1,417,390 $ 3,937,315
Interest 251,597 590,694
Foreign Taxes Withheld (2,594) (18,131)
================================================================================
TOTAL INCOME 1,666,393 4,509,878
================================================================================
EXPENSES
Investment Advisory Fees 711,448 1,487,535
Distribution Expenses
Investor Class 237,099 495,845
Class C 201 --
Transfer Agent Fees 220,772 544,152
Administrative Fees 46,854 69,173
Custodian Fees and Expenses 13,541 29,032
Directors' Fees and Expenses 8,716 16,183
Professional Fees and Expenses 13,691 19,229
Registration Fees and Expenses - Investor Class 13,868 43,976
Reports to Shareholders 17,176 132,633
Other Expenses 2,252 6,714
================================================================================
TOTAL EXPENSES 1,285,618 2,844,472
Fees and Expenses Absorbed by Investment Adviser (88,229) (346,779)
Fees and Expenses Paid Indirectly (11,284) (18,980)
================================================================================
NET EXPENSES 1,186,105 2,478,713
================================================================================
NET INVESTMENT INCOME 480,288 2,031,165
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 8,837,503 13,701,403
Foreign Currency Transactions (152) (102,652)
================================================================================
Total Net Realized Gain 8,837,351 13,598,751
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 38,242,661 24,409,177
Foreign Currency Transactions 74,195 (397,742)
================================================================================
Total Net Appreciation 38,316,856 24,011,435
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 47,154,207 37,610,186
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 47,634,495 $ 39,641,351
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
ENERGY FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (194,158) $ (82,989) $ 16,233
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions 8,756,728 6,804,236 (35,129,895)
Change in Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions 32,665,684 18,193,660 (40,132,785)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 41,228,254 24,914,907 (75,246,447)
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income - Investor Class 0 0 (167,166)
In Excess of Net Investment Income - Investor Class 0 (115,167) (2,454)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class 0 0 (4,468,073)
In Excess of Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class 0 0 (35,552,458)
=======================================================================================================================
TOTAL DISTRIBUTIONS 0 (115,167) (40,190,151)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 377,979,679 943,138,107 591,680,044
Class C 14,738 -- --
Reinvestment of Distributions - Investor Class 0 108,078 37,731,064
=======================================================================================================================
377,994,417 943,246,185 629,411,108
Amounts Paid for Repurchases of Shares - Investor Class (393,910,969) (909,365,271) (696,170,359)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (15,916,552) 33,880,914 (66,759,251)
=======================================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 25,311,702 58,680,654 (182,195,849)
NET ASSETS
Beginning of Period 196,136,049 137,455,395 319,651,244
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Loss of
($16,462), ($14,351) and ($10,238), respectively) $ 221,447,751 $ 196,136,049 $ 137,455,395
=======================================================================================================================
---------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 25,616,841 74,761,155 44,134,902
Class C 913 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 0 10,747 2,803,292
=======================================================================================================================
25,617,754 74,771,902 46,938,194
Shares Repurchased - Investor Class (27,227,033) (72,598,537) (51,273,648)
=======================================================================================================================
NET INCREASE (DECREASE) IN FUND SHARES (1,609,279) 2,173,365 (4,335,454)
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FINANCIAL SERVICES FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income $ 1,116,743 $ 3,414,058 $ 12,285,909
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 18,617,747 106,704,595 08,562,536
Change in Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions (24,563,334) 63,074,194 (5,267,763)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS (4,828,844) 173,192,847 115,580,682
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Investor Class (1,119,811) (3,356,533) (12,269,881)
Class C (19) -- --
In Excess of Net Investment Income
Investor Class (64,486) 0 0
Class C (398) -- --
Net Realized Gain on Investment Securities and
Foreign Currency Transactions - Investor Class (107,176,405) (109,018,838) (148,103,393)
=======================================================================================================================
TOTAL DISTRIBUTIONS (108,361,119) (112,375,371) (160,373,274)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 833,986,456 1,613,190,305 1,718,344,847
Class C 130,118 -- --
Reinvestment of Distributions
Investor Class 104,460,580 108,801,157 150,190,546
Class C 387 -- --
=======================================================================================================================
938,577,541 1,721,991,462 1,868,535,393
Amounts Paid for Repurchases of Shares - Investor Class (934,454,266) (1,957,908,508) (1,519,342,944)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 4,123,275 (235,917,046) 349,192,449
=======================================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS (109,066,688) (175,099,570) 304,399,857
NET ASSETS
Beginning of Period 1,242,554,989 1,417,654,559 1,113,254,702
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
of ($65,712), $3,087 and ($21,917) respectively) $ 1,133,488,301 $ 1,242,554,989 $ 1,417,654,559
=======================================================================================================================
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FINANCIAL SERVICES FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 32,076,355 55,199,855 57,179,200
Class C 5,090 -- --
Shares Issued from Reinvestment of Distributions
Investor Class 3,991,575 4,049,413 5,459,331
Class C 14 -- --
=======================================================================================================================
36,073,034 59,249,268 62,638,531
Shares Repurchased - Investor Class (36,083,954) (67,294,030) (51,007,064)
=======================================================================================================================
NET INCREASE (DECREASE) IN FUND SHARES (10,920) (8,044,762) 11,631,467
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GOLD FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (289,172) $ (1,639,042) $ (1,116,660)
Net Realized Loss on Investment Securities
and Foreign Currency Transactions (27,939,242) (32,020,620) (65,297,806)
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 14,432,798 28,110,121 6,058,834
=======================================================================================================================
NET DECREASE IN NET ASSETS FROM OPERATIONS (13,795,616) (5,549,541) (60,355,632)
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income - Investor Class 0 0 (1,637,391)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 247,805,590 662,595,028 703,190,475
Class C 1,000 -- --
Reinvestment of Distributions - Investor Class 0 0 1,520,914
=======================================================================================================================
247,806,590 662,595,028 704,711,389
Amounts Paid for Repurchases of Shares - Investor Class (252,292,879) (664,541,935) (686,554,223)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (4,486,289) (1,946,907) 18,157,166
======================================================================================================================
TOTAL DECREASE IN NET ASSETS (18,281,905) (7,496,448) (43,835,857)
NET ASSETS
Beginning of Period 99,752,938 107,249,386 151,085,243
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Loss of
($1,039,958), ($754,980) and ($3,948,406), respectively) $ 81,471,033 $ 99,752,938 $ 107,249,386
=======================================================================================================================
---------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 144,269,152 348,656,765 319,522,708
Class C 572 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 0 0 652,176
=======================================================================================================================
144,269,724 348,656,765 320,174,884
Shares Repurchased - Investor Class (147,646,997) (350,729,790) (310,832,754)
=======================================================================================================================
NET INCREASE (DECREASE) IN FUND SHARES (3,377,273) (2,073,025) 9,342,130
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
HEALTH SCIENCES FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (1,546,109) $ 1,047,766 $ 2,746,844
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 97,143,857 155,541,144 196,825,886
Change in Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions (12,364,408) (50,467,574) 68,341,567
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 83,233,340 106,121,336 267,914,297
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income - Investor Class (1,284,813) (985,748) (4,765,887)
In Excess of Net Investment Income - Investor Class (5,741,493) (12,718) (53,859)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class (161,053,946) (198,906,192) (147,796,033)
=======================================================================================================================
TOTAL DISTRIBUTIONS (168,080,252) (199,904,658) (152,615,779)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 943,045,132 1,811,722,158 1,309,995,468
Class C 616,031 -- --
Reinvestment of Distributions - Investor Class 161,314,490 190,797,614 142,313,946
=======================================================================================================================
1,104,975,653 2,002,519,772 1,452,309,414
Amounts Paid for Repurchases of Shares
Investor Class (971,010,944) (1,662,903,600) (1,183,910,039)
Class C (53,039) -- --
=======================================================================================================================
(971,063,983) (1,662,903,600) 1,183,910,039)
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 133,911,670 339,616,172 268,399,375
=======================================================================================================================
TOTAL INCREASE IN NET ASSETS 49,064,758 245,832,850 383,697,893
NET ASSETS
Beginning of Period 1,574,028,605 1,328,195,755 944,497,862
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
(Loss) of ($4,006,163), $2,830,922 and ($53,538),
respectively) $ 1,623,093,363 $ 1,574,028,605 $ 1,328,195,755
=======================================================================================================================
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
HEALTH SCIENCES FUND (CONTINUED)
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 15,593,547 30,290,410 22,644,603
Class C 9,263 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 2,986,867 3,296,314 2,979,770
=======================================================================================================================
18,589,677 33,586,724 25,624,373
Shares Repurchased
Investor Class (16,312,035) (28,009,716) (20,669,473)
Class C (802) -- --
=======================================================================================================================
(16,312,837) (28,009,716) (20,669,473)
=======================================================================================================================
NET INCREASE IN FUND SHARES 2,276,840 5,577,008 4,954,900
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
LEISURE FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (1,439,320) $ (2,320,139) $ (191,426)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 55,649,250 36,627,789 15,595,389
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 23,206,312 122,596,304 15,720,560
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 77,416,242 156,903,954 31,124,523
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income - Investor Class 0 0 (8,831)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class (34,134,824) (15,505,553) (22,821,029)
=======================================================================================================================
TOTAL DISTRIBUTIONS (34,134,824) (15,505,553) (22,829,860)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 243,268,565 398,970,871 217,846,689
Class C 81,160 -- --
Reinvestment of Distributions - Investor Class 32,575,033 15,149,269 21,894,580
=======================================================================================================================
275,924,758 414,120,140 239,741,269
Amounts Paid for Repurchases of Shares - Investor Class (212,946,686) (340,851,793) (235,970,629)
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 62,978,072 73,268,347 3,770,640
=======================================================================================================================
TOTAL INCREASE IN NET ASSETS 106,259,490 214,666,748 12,065,303
NET ASSETS
Beginning of Period 443,347,815 228,681,067 216,615,764
End of Period(Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Loss of
($25,987), ($40,573) and ($18,027), respectively) $ 549,607,305 $ 443,347,815 $ 228,681,067
=======================================================================================================================
---------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 5,361,158 10,888,255 7,793,967
Class C 1,781 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 768,823 532,486 899,529
=======================================================================================================================
6,131,762 11,420,741 8,693,496
Shares Repurchased - Investor Class (4,727,142) (9,350,638) (8,465,353)
=======================================================================================================================
NET INCREASE IN FUND SHARES 1,404,620 2,070,103 228,143
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
REAL ESTATE OPPORTUNITY FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income $ 670,466 $ 887,199 $ 1,293,905
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions (1,571,098) (7,214,616) 4,205,231
Change in Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions 1,039,189 3,469,151 (6,267,343)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 138,557 (2,858,266) (768,207)
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Investor Class (656,613) (860,435) (1,231,251)
Class C (687) -- --
In Excess of Net Investment Income
Investor Class (79,423) 0 0
Class C (1,049) -- --
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class 0 0 (2,808,471)
In Excess of Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class 0 (1,731,958) 0
=======================================================================================================================
TOTAL DISTRIBUTIONS (737,772) (2,592,393) (4,039,722)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 59,587,645 116,589,416 125,593,955
Class C 142,000 -- --
Reinvestment of Distributions
Investor Class 712,651 2,451,567 3,806,928
Class C 631 -- --
=======================================================================================================================
60,442,927 119,040,983 129,400,883
Amounts Paid for Repurchases of Shares - Investor Class (57,061,000) (119,732,760) (137,702,363)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 3,381,927 (691,777) (8,301,480)
=======================================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,782,712 (6,142,436) (13,109,409)
NET ASSETS
Beginning of Period 17,405,690 23,548,126 36,657,535
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
of $4,749, ($13,166) and $10,184, respectively) $ 20,188,402 $ 17,405,690 $ 23,548,126
=======================================================================================================================
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
REAL ESTATE OPPORTUNITY FUND (CONTINUED)
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 9,075,124 15,431,175 11,521,060
Class C 21,490 -- --
Shares Issued from Reinvestment of Distributions
Investor Class 109,583 346,136 366,311
Class C 95 -- --
=======================================================================================================================
9,206,292 15,777,311 11,887,371
Shares Repurchased - Investor Class (8,683,241) (15,826,855) (12,649,335)
=======================================================================================================================
NET INCREASE (DECREASE) IN FUND SHARES 523,051 (49,544) (761,964)
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TECHNOLOGY FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (9,508,681) $ (12,386,705) $ (5,170,961)
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions 272,767,421 341,752,269 (96,330,143)
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 2,972,527,290 930,472,339 75,738,741
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 3,235,786,030 1,259,837,903 (25,762,363)
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income - Investor Class 0 0 (32,284)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions
Institutional Class (93,076,664) 0 --
Investor Class (147,899,340) 0 (94,248,558)
In Excess of Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class 0 0 (98,305,920)
=======================================================================================================================
TOTAL DISTRIBUTIONS (240,976,004) 0 (192,586,762)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 3,012,863,434 835,394,390 --
Investor Class 2,898,277,563 2,550,589,823 1,501,056,910
Class C 3,279,829 -- --
Reinvestment of Distributions
Institutional Class 93,076,664 0 --
Investor Class 143,222,652 0 181,493,943
=======================================================================================================================
6,150,720,142 3,385,984,213 1,682,550,853
Amounts Paid for Repurchases of Shares
Institutional Class (810,896,463) (128,663,679) --
Investor Class (1,877,537,925) (2,492,391,489) (1,495,399,337)
Class C (56,864) -- --
=======================================================================================================================
(2,688,491,252) (2,621,055,168) (1,495,399,337)
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 3,462,228,890 764,929,045 187,151,516
=======================================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 6,457,038,916 2,024,766,948 (31,197,609)
NET ASSETS
Beginning of Period 3,033,537,743 1,008,770,795 1,039,968,404
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Loss of
($91,573), ($64,798) and ($43,470), respectively) $ 9,490,576,659 $ 3,033,537,743 $ 1,008,770,795
=======================================================================================================================
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TECHNOLOGY FUND (CONTINUED)
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
FUND SHARE TRANSACTIONS
Shares Sold
Institutional Class 34,320,746 19,201,080 --
Investor Class 32,937,088 61,886,040 51,002,134
Class C 29,684 -- --
Shares Issued from Reinvestment of Distributions
Institutional Class 1,440,043 0 --
Investor Class 2,226,662 0 7,022,355
=======================================================================================================================
70,954,223 81,087,120 58,024,489
Shares Repurchased
Institutional Class (8,625,790) (2,908,262) --
Investor Class (21,560,644) (62,037,041) (50,998,957)
Class C (524) -- --
=======================================================================================================================
(30,186,958) (64,945,303) (50,998,957)
=======================================================================================================================
NET INCREASE IN FUND SHARES 40,767,265 16,141,817 7,025,532
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Loss $ (4,594,030) $ (2,448,036) $ (230,214)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 103,221,894 1,700,782 6,087,498
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 1,387,851,623 245,324,402 30,321,776
NET INCREASE IN NET ASSETS
FROM OPERATIONS 1,486,479,487 244,577,148 36,179,060
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income - Investor Class (1,760) 0 0
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class (6,140,564) (5,207,012) (5,103,352)
=======================================================================================================================
TOTAL DISTRIBUTIONS (6,142,324) (5,207,012) (5,103,352)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 3,173,803,984 1,499,364,986 521,582,449
Class C 2,702,673 -- --
Reinvestment of Distributions - Investor Class 5,888,130 5,082,544 4,810,525
=======================================================================================================================
3,182,394,787 1,504,447,530 526,392,974
Amounts Paid for Repurchases of Shares
Investor Class (1,563,433,689) (991,137,779) (353,350,473)
Class C (134,566) -- --
=======================================================================================================================
(1,563,568,255) (991,137,779) (353,350,473)
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 1,618,826,532 513,309,751 173,042,501
=======================================================================================================================
TOTAL INCREASE IN NET ASSETS 3,099,163,695 752,679,887 204,118,209
NET ASSETS
Beginning of Period 1,029,256,393 276,576,506 72,458,297
=======================================================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Loss of
($20,724), ($147,992) and ($3,205), respectively) $ 4,128,420,088 $ 1,029,256,393 $ 276,576,506
=======================================================================================================================
---------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 64,878,508 57,707,098 28,810,576
Class C 41,292 -- --
Shares Issued from Reinvestment of
Distributions - Investor Class 140,450 268,634 319,200
=======================================================================================================================
65,060,250 57,975,732 29,129,776
Shares Repurchased
Investor Class (33,337,392) (39,721,071) (19,749,078)
Class C (1,994) -- --
=======================================================================================================================
(33,339,386) (39,721,071) (19,749,078)
NET INCREASE IN FUND SHARES 31,720,864 18,254,661 9,380,698
=======================================================================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
UTILITIES FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------------
2000 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income $ 480,288 $ 2,031,165 $ 3,225,819
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 8,837,351 13,598,751 2,637,629
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 38,316,856 24,011,435 30,143,538
=======================================================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 47,634,495 39,641,351 36,006,986
=======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income
Investor Class (466,273) (2,503,335) (3,220,692)
Class C (279) -- --
Net Realized Gain on Investment Securities
and Foreign Currency Transactions - Investor Class (13,863,914) (2,496,522) (3,970,217)
=======================================================================================================================
TOTAL DISTRIBUTIONS (14,330,466) (4,999,857) (7,190,909)
=======================================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 114,901,422 245,057,189 446,364,689
Class C 246,653 -- --
Reinvestment of Distributions
Investor Class 13,509,969 4,762,842 6,686,820
Class C 279 -- --
=======================================================================================================================
128,658,323 249,820,031 453,051,509
Amounts Paid for Repurchases of Shares - Investor Class (124,495,345) (238,436,543) (436,981,400)
=======================================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 4,162,978 11,383,488 16,070,109
=======================================================================================================================
TOTAL INCREASE IN NET ASSETS 37,467,007 46,024,982 44,886,186
NET ASSETS
Beginning of Period 223,334,317 177,309,335 132,423,149
=======================================================================================================================
End of Period (Including Accumulated Undistributed
Net Investment Income (Loss) of ($14,678),
($12,297) and $482,480, respectively) $ 260,801,324 $ 223,334,317 $ 177,309,335
=======================================================================================================================
---------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 5,988,181 14,379,908 32,309,451
Class C 12,124 -- --
Shares Issued from Reinvestment of Distributions
Investor Class 794,840 297,014 489,728
Class C 14 -- --
=======================================================================================================================
6,795,159 14,676,922 32,799,179
Shares Repurchased - Investor Class (6,654,534) (14,079,699) (31,429,955)
=======================================================================================================================
NET INCREASE IN FUND SHARES 140,625 597,223 1,369,224
=======================================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO NOTES TO FINANCIAL STATEMENTS -- INVESCO SECTOR FUNDS, INC.
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Sector
Funds, Inc. is incorporated in Maryland and presently consists of nine separate
Funds: Energy Fund, Financial Services Fund, Gold Fund, Health Sciences Fund,
Leisure Fund, Real Estate Opportunity Fund, Technology Fund, Telecommunications
Fund and Utilities Fund (individually the "Fund" and collectively, the "Funds").
Effective February 15, 2000, Realty Fund's named changed to Real Estate
Opportunity Fund. The investment objectives of the Funds are: To seek capital
appreciation through investments in specific business sectors for Energy,
Financial Services, Gold, Health Sciences, Leisure and Technology Funds; to
achieve current income for Real Estate Opportunity Fund; to achieve a high total
return on investments through capital appreciation and current income for
Telecommunications Fund; and to seek capital appreciation and income through
investments in a specific business sector for Utilities Fund. The Fund is
registered under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company. Energy, Financial Services,
Gold, Health Sciences, Leisure, Technology and Utilities Funds' fiscal year-end
changed from October 31 to March 31. Real Estate Opportunity and
Telecommunications Funds' fiscal year-end changed from July 31 to March 31.
Effective December 22, 1998, Technology Fund offers two classes of shares,
referred to as Institutional Class and Investor Class (formerly Class I and
Class II). Institutional Class shares are not subject to any distribution fees,
while Investor Class shares are subject to an annual distribution fee to a
maximum of 0.25% of the Fund's annual average net assets attributable to
Investor Class shares. Effective February 15, 2000, each Fund offered an
additional class of shares, referred to as Class C shares. Investor Class and
Class C shares are subject to an annual distribution fee to a maximum of 0.25%
and 1.00%, respectively, of the Fund's annual average net assets attributable to
each Class' 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 net assets represented by such class.
Operating expenses directly attributable to a specific class are charged against
operations of that class.
On May 20, 1999, shareholders of INVESCO Specialty Funds, Inc. - Real Estate
Opportunity Fund, and on May 28, 1999, shareholders of INVESCO Specialty Funds,
Inc. Telecommunications Fund approved an Agreement and Plan of Reorganization
and Termination providing for the conversion of each Fund from a separate series
of INVESCO Specialty Funds, Inc. to a separate series of INVESCO Sector Funds,
Inc. effective close of business on February 15, 2000.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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
at the close of the regular trading day on that exchange (generally 4:00 p.m.
Eastern time) in the market where such securities are primarily traded. If last
sales prices are not available, securities are valued at the highest closing bid
prices at the close of the regular trading day and 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.
<PAGE>
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 ator prior to the close of the New York Stock Exchange. Gold
bullion is valued at the close of the New York Stock Exchange. Gold bullion
valuation is obtained by a pricing service approved by the Fund's board of
directors. Foreign currency exchange rates are determined daily prior to the
close of the New York Stock Exchange.
Investments in shares of investment companies are valued at the net asset value
of the respective mutual fund as calculated each day.
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.
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.
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.
<PAGE>
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
The Gold Fund may invest in gold bullion which may have significant price
movements over short periods of time and may be affected by unpredictable
international monetary and political policies. Further, gold bullion may have
storage and transactions costs associated with its ownership which may be higher
than that of other types of securities.
Restricted securities held by a 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 a 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 March 31, 2000, Energy Fund had $18,021,703 in net capital loss carryovers
which expire in the year 2006, Gold Fund had $1,051,643, $66,206,106,
$64,536,948 and $30,924,521 in net capital loss carryovers which expire in the
years 2003, 2005, 2006 and 2007, respectively, and Real Estate Opportunity Fund
had $6,119,366 and $1,790,021 in net capital loss carryovers which expire in the
years 2007 and 2008, respectively. Net capital loss carryovers utilized in 2000
by Energy Fund amounted to $8,055,737.
Gold and Real Estate Opportunity Funds incurred and elected to defer
post-October 31 net capital losses of $29,794,570 and $624,691, respectively, to
the year ended March 31, 2001. To the extent future capital gains and income are
offset by capital loss carryovers and deferred post-October 31 losses, 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. Of the ordinary income distributions
declared for the period ended March 31, 2000, amounts qualifying for the
dividends received deduction available to the Fund's corporate shareholders were
as follows:
QUALIFYING
FUND PERCENTAGE
- --------------------------------------------------------------------------------
Energy Fund 0.00%
Financial Services Fund 100.00%
Gold Fund 0.00%
Health Sciences Fund 18.84%
Leisure Fund 0.00%
Real Estate Opportunity Fund 0.00%
Technology Fund 0.00%
Telecommunications Fund 0.00%
Utilities Fund 100.00%
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 accounting principles generally accepted in
the United States. These differences are primarily due to differing treatments
for amortized premiums, foreign currency transactions, market discounts,
nontaxable dividends, net operating losses and expired capital loss
carryforwards. For the period ended March 31, 2000, the effects of such
differences were as follows:
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTEDNET REALIZED
NET GAIN ON
INVESTMENT INVESTMENT PAID-IN
FUND INCOME SECURITIES CAPITAL
- --------------------------------------------------------------------------------
Energy Fund $ 192,047 $ 0 $ (192,047)
Financial Services Fund (828) (11,208) 12,036
Gold Fund 4,194 (4,194) 0
Health Sciences Fund 1,735,330 (1,774,020) 38,690
Leisure Fund 1,453,906 (1,460,959) 7,053
Real Estate Opportunity Fund 85,221 (85,221) 0
Technology Fund 9,481,906 (9,515,493) 33,587
Telecommunications Fund 4,723,058 (4,724,071) 1,013
Utilities Fund (16,117) (7,347) 23,464
Net investment income, net realized gains and net assets were not affected.
<PAGE>
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.
G. EXPENSES -- Each Fund or Class bears expenses incurred specifically on its
behalf and, in addition, each Fund or Class bears a portion of general expenses,
based on the relative net assets of each Fund or Class.
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
Energy, Financial Services, Gold, Health Sciences and Telecommunications Funds
and Distribution Fees and Transfer Agent Fees for Gold Fund 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 period ended March 31, 2000, Fees and Expenses Paid Indirectly consisted
of the following:
CUSTODIAN FEES DISTRIBUTION TRANSFER
FUND AND EXPENSES EXPENSES AGENT FEES
Energy Fund $ 10,288 $ 0 $ 0
Financial Services Fund 41,659 0 0
Gold Fund 14,815 1,650 606
Health Sciences Fund 79,484 0 0
Leisure Fund 38,809 0 0
Real Estate Opportunity Fund 5,256 0 0
Technology Fund 187,276 0 0
Telecommunications Fund 168,284 0 0
Utilities Fund 11,284 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 is based on the annual
rate of each Fund's average net assets as follows:
AVERAGE NET ASSETS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
$700 $2 $4 $6
$0 TO $350 TO MILLION BILLION BILLION BILLION OVER
$350 $700 TO $2 TO $4 TO $6 TO $8 $8
MILLION MILLION BILLION BILLION BILLION BILLION BILLION
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Energy Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Financial Services Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Gold Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Health Sciences Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Leisure Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Technology Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Utilities Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
</TABLE>
<PAGE>
AVERAGE NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
$500 $1 $2 $4 $6
$0 TO MILLION BILLION BILLION BILLION BILLION OVER
$500 TO $1 TO $2 TO $4 TO $6 TO $8 $8
MILLION BILLION BILLION BILLION BILLION BILLION BILLION
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Real Estate Opportunity Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Telecommunications Fund 0.65% 0.55% 0.45% 0.45% 0.40% 0.375% 0.35%
</TABLE>
A Sub-Advisory Agreement between IFG and INVESCO Realty Advisors ("IRAI"), an
affiliate of IFG, provides that investment decisions of Real Estate Opportunity
Fund were made by IRAI. Fees for such sub-advisory services were paid by IFG.
Effective January 27, 2000, the sub-advisory agreement with IRAI was terminated
and such responsibilities were transferred to IFG.
A plan of distribution pursuant to Rule 12b-1 of the Act (the "Plan") 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 of Investor Class
shares. A master distribution plan and agreement pursuant to Rule 12b-1 of the
Act provides for financing the distribution and shareholder servicing of Class C
shares to a maximum of 1.00% per annum of average daily net assets. For the
period ended March 31, 2000, amounts paid to the Distributor were as follows:
INVESTOR CLASS
FUND CLASS C
- --------------------------------------------------------------------------------
Energy Fund $ 187,605 Insignificant
Financial Services Fund 1,122,528 $ 2
Gold Fund 101,355 Insignificant
Health Sciences Fund 1,682,900 7
Leisure Fund 521,943 3
Real Estate Opportunity Fund 30,087 Insignificant
Technology Fund 3,117,748 167
Telecommunications Fund 2,838,019 70
Utilities Fund 224,308 38
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 Services Agreement, each Fund paid IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG has voluntarily agreed to absorb certain fees and expenses incurred by Real
Estate Opportunity and Utilities Funds for the period ended March 31, 2000.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended
March 31, 2000, 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:
<PAGE>
FUND PURCHASES SALES
- --------------------------------------------------------------------------------
Energy Fund $ 188,334,195 $ 204,831,344
Financial Services Fund 381,736,982 441,479,106
Gold Fund 28,851,454 48,262,458
Health Sciences Fund 1,613,762,063 1,813,942,361
Leisure Fund 139,055,737 115,943,349
Real Estate Opportunity Fund 47,934,789 45,207,626
Technology Fund 4,891,668,944 1,675,017,601
Telecommunications Fund 1,875,341,703 476,102,856
Utilities Fund 37,798,949 38,722,730
There were no purchases or sales of U.S. Government securities.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At March 31, 2000, 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 $ 49,988,194 $ 484,059 $ 49,504,135
Financial Services Fund 267,232,939 51,817,111 215,415,828
Gold Fund 4,873,344 23,984,745 (19,111,401)
Health Sciences Fund 285,211,435 88,921,339 196,290,096
Leisure Fund 227,001,285 16,999,918 210,001,367
Real Estate Opportunity Fund 543,338 752,283 (208,945)
Technology Fund 4,289,207,661 224,177,098 4,065,030,563
Telecommunications Fund 1,715,350,111 40,351,199 1,674,998,912
Utilities Fund 114,407,888 4,420,190 109,987,698
NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of the
Funds' officers and directors are also officers and directors of IFG, IDI or
IRAI.
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 meeting attendance fees.
Pension expenses for the period ended March 31, 2000, 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 $ 2,373 $ 1,931 $ 18,404
Financial Services Fund 17,473 15,548 94,038
Gold Fund 1,552 14,476 37,044
Health Sciences Fund 19,549 24,453 120,941
Leisure Fund 4,487 8,315 34,344
Real Estate Opportunity Fund 368 0 1,587
Technology Fund 27,762 0 91,646
Telecommunications Fund 11,505 0 16,658
Utilities Fund 2,665 5,216 19,918
<PAGE>
The independent directors have contributed to a deferred fee agreement plan,
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
Funds, excluding the INVESCO Variable Investment 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 period ended March 31, 2000, in which the
issuer was an affiliate of the Fund, is as follows:
<TABLE>
<CAPTION>
REALIZED
LOSS ON
PURCHASES SALES INVESTMENT VALUE AT
----------------------------------------------
AFFILIATE SHARES COST SHARES COST SECURITIES 3/31/2000
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GOLD FUND
Francisco Gold -- -- 20,000 $ 282,614 $(210,410) $ 1,043,208
Guyanor Ressources
SA Class B Shrs -- -- -- -- -- 482,160
Pacific Rim Mining 298,500 $722,358 -- -- -- 3,659,306
Star Resources 591,000 355,632 -- -- -- 2,871,952
HEALTH SCIENCES FUND
Clarus Medical Systems
Pfd, Series I Shrs -- -- 106,664 2,000,000 (2,000,000) --
Pfd, Series II Shrs -- -- 22,239 111,196 (111,196) --
Warrants (Exp 2000) -- -- 2,224 0 0 --
DUSA Pharmaceuticals 682,500 19,451,250 -- -- -- 16,337,344
Ecogen Technologies I -- -- -- -- -- 1
Janus Biomedical
Conv Pfd, Series A Shrs -- -- -- -- -- 1
TELECOMMUNICATIONS FUND
Illuminet Holdings 342,300 16,724,987 -- -- -- 16,852,927
</TABLE>
No dividend or interest income was received from any affiliated companies.
NOTE 6 -- INTERFUND LENDING. Each Fund is party to an interfund lending
agreement between each Fund and other INVESCO sponsored mutual funds, which
permit it to borrow or lend cash, at rates beneficial to both the borrowing and
lending funds. Loans totaling 10% or more of a borrowing Fund's total assets are
collateralized at 102% of the value of the loan; loans of less than 10% are
unsecured. Pursuant to each Fund's prospectus, each Fund may borrow up to 33
1/3% of its total assets for temporary or emergency purposes. During the period
ended March 31, 2000, Energy, Gold, Leisure and Real Estate Opportunity Funds
borrowed cash at a weighted average rate of 5.89% - 5.99%. Technology and
Telecommunications Funds lent cash at a weighted average rate of 5.88% - 5.92%.
There were no borrowings outstanding at March 31, 2000.
NOTE 7 -- 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 March
31, 2000, there were no such borrowings.
<PAGE>
NOTE 8 -- CONTINGENT DEFERRED SALES CHARGE ("CDSC"). A 1.00% CDSC is charged by
each Fund's Class C shares on redemptions or exchanges of shares held thirteen
months or less (other than shares acquired through reinvestment of dividends or
other distributions). The CDSC is paid by the redeeming shareholder and
therefore, it is not an expense of the Fund. For the period ended March 31,
2000, the Distributor received an insignificant amount of CDSC from shareholder
redemptions for Energy - Class C, Financial Services - Class C, Gold - Class C,
Health Sciences Class C, Leisure - Class C, Real Estate Opportunity - Class C
and Utilities - Class C Funds. The Distributor received $414 and $119 for
Technology - Class C and Telecommunications - Class C Funds, respectively.
- ---------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
INVESCO Sector Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of INVESCO Energy Fund, INVESCO
Financial Services Fund, INVESCO Gold Fund, INVESCO Health Sciences Fund,
INVESCO Leisure Fund, INVESCO Real Estate Opportunity Fund (formerly INVESCO
Realty Fund, one of the portfolios constituting INVESCO Specialty Funds, Inc.),
INVESCO Technology Fund, INVESCO Telecommunications Fund (formerly INVESCO
Worldwide Communications Fund, one of the portfolios constituting INVESCO
Specialty Funds, Inc.) and INVESCO Utilities Fund (constituting INVESCO Sector
Funds, Inc., formerly known as INVESCO Strategic Funds, Inc., hereafter referred
to as the "Fund") at March 31, 2000, the results of each of their operations for
each of the periods indicated, the changes in each of their net assets for each
of the periods indicated and the financial highlights for each of the periods
indicated, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2000 by
correspondence with the custodians and transfer agent, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Denver, Colorado
May 4, 2000
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ENERGY FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 13.68 $ 11.30 $ 19.38 $ 15.03 $ 10.09 $ 10.77
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss)(b) (0.00) 0.00 0.00 0.06 0.04 0.09
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.72 2.39 (5.04) 5.56 4.94 (0.68)
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 3.72 2.39 (5.04) 5.62 4.98 (0.59)
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(c) 0.00 0.01 0.01 0.05 0.04 0.09
Distributions from Capital Gains 0.00 0.00 0.34 1.22 0.00 0.00
In Excess of Capital Gains 0.00 0.00 2.69 0.00 0.00 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 0.00 0.01 3.04 1.27 0.04 0.09
=================================================================================================================
Net Asset Value-- End of Period $ 17.40 $ 13.68 $ 11.30 $ 19.38 $ 15.03 $ 10.09
=================================================================================================================
TOTAL RETURN 27.19%(d) 21.19% (28.51%) 40.65% 49.33% (5.45%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 221,432 $ 196,136 $ 137,455 $ 319,651 $ 236,169 $ 48,284
Ratio of Expenses to Average
Net Assets(e) 1.60%(f) 1.68% 1.58% 1.21% 1.30% 1.53%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.26%)(f) (0.05%) 0.01% 0.39% 0.54% 0.72%
Portfolio Turnover Rate 109%(d) 279% 192% 249% 392% 300%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the period ended March 31, 2000 and for the years ended October 31, 1999
and 1998.
(c) Distributions in excess of net investment income for the years ended October
31, 1999, 1998 and 1996, aggregated less than $0.01 on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
ENERGY FUND - CLASS C (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 14.35
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.01)
Net Gains on Securities
(Both Realized and Unrealized) 3.05
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.04
================================================================================
Net Asset Value-- End of Period $ 17.39
================================================================================
TOTAL RETURN 21.11%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 16
Ratio of Expenses to Average Net Assets(d) 2.05%(e)
Ratio of Net Investment Loss to Average Net Assets (1.11%)(e)
Portfolio Turnover Rate 109%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f)Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
FINANCIAL SERVICES FUND - INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 29.73 $ 28.45 $ 29.14 $ 22.94 $ 18.95 $ 5.31
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.03 0.08 0.25 0.28 0.50 0.29
Net Gains on Securities
(Both Realized and Unrealized) 0.05 3.52 3.01 8.14 5.18 3.64
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 0.08 3.60 3.26 8.42 5.68 3.93
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.03 0.08 0.25 0.28 0.50 0.29
In Excess of Net Investment Income(b) 0.00 0.00 0.00 0.00 0.05 0.00
Distributions from Capital Gains 2.65 2.24 3.70 1.94 1.14 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 2.68 2.32 3.95 2.22 1.69 0.29
=================================================================================================================
Net Asset Value-- End of Period $ 27.13 $ 29.73 $ 28.45 $ 29.14 $ 22.94 18.95
=================================================================================================================
TOTAL RETURN 0.60%(c) 13.52% 11.76% 39.80% 31.48% 25.80%
RATIOS
Net Assets -- End of Period
($000 Omitted) $1,133,350 $ 1,242,555 $ 1,417,655 $ 1,113,255 $ 542,688 $ 410,048
Ratio of Expenses to Average
Net Assets(d) 1.29%(e) 1.26% 1.05% 0.99% 1.11% 1.26%
Ratio of Net Investment Income
to Average Net Assets 0.25%(e) 0.25% 0.85% 1.19% 2.48% 2.10%
Portfolio Turnover Rate 38%(c) 83% 52% 96% 141% 171%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) Distributions in Excess of Net Investment Income aggregated less than $0.01
on a per share basis for the period ended March 31, 2000.
(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.
(e) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
FINANCIAL SERVICES FUND - CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 23.66
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income(b) 0.00
Net Gains on Securities
(Both Realized and Unrealized) 3.48
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.48
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income(c) 0.00
In Excess of Net Investment Income 0.08
================================================================================
TOTAL DISTRIBUTIONS 0.08
================================================================================
Net Asset Value-- End of Period $ 27.06
================================================================================
TOTAL RETURN 14.72%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 138
Ratio of Expenses to Average Net Assets(e) 1.63%(f)
Ratio of Net Investment Income to Average Net Assets 0.39%(f)
Portfolio Turnover Rate 38%(g)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) Net Investment Income aggregated less than $0.01 on a per share basis for
the period ended March 31, 2000.
(c) Dividends from Net Investment Income aggregated less than $0.01 on a per
share basis for the period ended March 31, 2000.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
GOLD FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 1.83 $ 1.90 $ 3.21 $ 8.00 $ 5.21 $ 5.68
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(b)
Net Investment Income (Loss) (0.01) (0.03) 0.01 (0.02) (0.01) 0.01
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.22) (0.04) (1.29) (2.62) 2.80 (0.47)
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS (0.23) (0.07) (1.28) (2.64) 2.79 (0.46)
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.00 0.00 0.00 0.01
In Excess of Net Investment Income 0.00 0.00 0.03 2.15 0.00 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 0.00 0.00 0.03 2.15 0.00 0.01
=================================================================================================================
Net Asset Value-- End of Period $ 1.60 $ 1.83 $ 1.90 $ 3.21 $ 8.00 $ 5.21
=================================================================================================================
TOTAL RETURN (12.58%)(c) (3.68%) (39.98%) (44.38%) 53.55% (8.12%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 81,470 $ 99,753 $ 107,249 $ 151,085 $ 277,892 $ 151,779
Ratio of Expenses to Average
Net Assets(d) 2.08%(e) 2.20% 1.90% 1.47% 1.22 % 1.32%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.76%)(e) (1.60%) (0.93%) (0.41%) (0.08%) 0.13%
Portfolio Turnover Rate 37%(c) 141% 133% 148% 155% 72%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) The per share information was computed based on average shares for the years
ended October 31, 1999 and 1997.
(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.
(e) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
GOLD FUND - CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 1.75
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(b) (0.00)
Net Gains on Securities
(Both Realized and Unrealized) (0.15)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (0.15)
================================================================================
Net Asset Value-- End of Period $ 1.60
================================================================================
TOTAL RETURN (8.57%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 1
Ratio of Expenses to Average Net Assets(d) 3.54%(e)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.82%)(e)
Portfolio Turnover Rate 37%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) Net Investment Loss for the period ended March 31, 2000 aggregated less
than $0.01 on a per share basis.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
HEALTH SCIENCES FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 58.39 $ 62.12 $ 57.50 $ 55.24 $ 50.47 $ 35.09
===============================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(b)
Net Investment Income (Loss) (0.06) 0.14 0.13 0.06 0.07 (0.03)
Net Gains on Securities
(Both Realized and Unrealized) 3.53 5.02 13.55 10.85 8.78 15.41
===============================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 3.47 5.16 13.68 10.91 8.85 15.38
===============================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(c) 0.04 0.04 0.25 0.06 0.07 0.00
In Excess of Net Investment Income 0.21 0.00 0.00 0.00 0.00 0.00
Distributions from Capital Gains 6.09 8.85 8.81 8.59 4.01 0.00
===============================================================================================================
TOTAL DISTRIBUTIONS 6.34 8.89 9.06 8.65 4.08 0.00
===============================================================================================================
Net Asset Value-- End of Period $ 55.52 $ 58.39 $ 62.12 $ 57.50 $ 55.24 $ 50.47
===============================================================================================================
TOTAL RETURN 6.30%(d) 8.44% 28.58% 22.96% 17.99% 43.83%
RATIOS
Net Assets -- End of Period
($000 Omitted) $1,622,624 $ 1,574,020 1,328,196 $ 944,498 $ 933,828 $ 860,926
Ratio of Expenses to Average
Net Assets(e) 1.18%(f) 1.22% 1.12% 1.08% 0.98% 1.15%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.22%)(f) 0.07% 0.25% 0.11% 0.11% (0.08%)
Portfolio Turnover Rate 107%(d) 127% 92% 143% 90% 107%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) The per share information was computed based on average shares for the
period ended March 31, 2000.
(c) Distributions in excess of net investment income for the years ended October
31, 1999 and 1998, aggregated less than $0.01 on a per share basis.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
HEALTH SCIENCES FUND - CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 62.05
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.03)
Net Losses on Securities
(Both Realized and Unrealized) (6.52)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (6.55)
================================================================================
Net Asset Value-- End of Period $ 55.50
================================================================================
TOTAL RETURN (10.56%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 470
Ratio of Expenses to Average Net Assets(d) 1.65%(e)
Ratio of Net Investment Loss to Average Net Assets (0.54%)(e)
Portfolio Turnover Rate 107%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LEISURE FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 43.21 $ 27.92 $ 27.21 $ 22.89 $ 23.78 $ 22.63
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(b)
Net Investment Income (Loss)(c) (0.13) 0.00 0.00 0.02 0.04 0.08
Net Gains on Securities
(Both Realized and Unrealized) 7.27 17.20 3.69 4.96 2.25 2.06
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 7.14 17.20 3.69 4.98 2.29 2.14
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(d) 0.00 0.00 0.00 0.02 0.04 0.08
Distributions from Capital Gains 3.23 1.91 2.98 0.64 2.25 0.91
In Excess of Capital Gains 0.00 0.00 0.00 0.00 0.89 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 3.23 1.91 2.98 0.66 3.18 0.99
=================================================================================================================
Net Asset Value-- End of Period $ 47.12 $ 43.21 $ 27.92 $ 27.21 $ 22.89 $ 23.78
=================================================================================================================
TOTAL RETURN 17.34%(e) 65.13% 15.16% 22.32% 10.66% 9.98%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 549,523 $ 443,348 $ 228,681 $ 216,616 $ 252,297 $ 265,181
Ratio of Expenses to Average
Net Assets(f) 1.28%(g) 1.44% 1.41% 1.41% 1.30% 1.29%
Ratio of Net Investment Loss
to Average Net Assets (0.65%)(g) (0.68%) (0.09%) 0.05% 0.18% 0.31%
Portfolio Turnover Rate 23%(e) 35% 31% 25% 56% 119%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) The per share information was computed based on average shares for the
period ended March 31, 2000.
(c) New Investment Income aggregated less than $0.01 on a per share basis for
the years ended October 31, 1999 and 1998.
(d) 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.
(e) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(f) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(g) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
LEISURE FUND - CLASS C (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 45.51
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.02)
Net Gains on Securities
(Both Realized and Unrealized) 1.60
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.58
================================================================================
Net Asset Value-- End of Period $ 47.09
================================================================================
TOTAL RETURN 3.47%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 84
Ratio of Expenses to Average Net Assets(d) 1.71%(e)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.42%)(e)
Portfolio Turnover Rate 23%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
REAL ESTATE OPPORTUNITY FUND - INVESTOR CLASS
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD PERIOD
ENDED ENDED
MARCH 31 YEAR ENDED JULY 31 JULY 31
- --------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 6.90 $ 9.15 $ 10.99 $ 10.00
==================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.27 0.33 0.38 0.22
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.28) (1.56) (0.96) 0.99
==================================================================================================
TOTAL FROM INVESTMENT OPERATIONS (0.01) (1.23) (0.58) 1.21
==================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.23 0.34 0.39 0.22
In Excess of Net Investment Income 0.03 0.00 0.00 0.00
Distributions from Capital Gains 0.00 0.00 0.87 0.00
In Excess of Capital Gains 0.00 0.68 0.00 0.00
==================================================================================================
TOTAL DISTRIBUTIONS 0.26 1.02 1.26 0.22
==================================================================================================
Net Asset Value-- End of Period $ 6.63 $ 6.90 $ 9.15 $ 10.99
==================================================================================================
TOTAL RETURN (0.03%)(c) (13.29%) (6.49%) 12.24%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 20,046 $ 17,406 $ 23,548 $ 36,658
Ratio of Expenses to Average Net Assets(d)(e) 1.34%(f) 1.34% 1.22% 1.20%(f)
Ratio of Net Investment Income to
Average Net Assets(d) 5.54%(f) 4.23% 3.53% 4.08%(f)
Portfolio Turnover Rate 272%(c)(g) 697%(g) 258% 70%(c)
</TABLE>
(a) From August 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) From January 1, 1997, commencement of investment operations, to July 31,
1997.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended March 31, 2000, the years ended July 31, 1999 and 1998 and the period
ended July 31, 1997. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 2.73%
(annualized), 2.76%, 1.97% and 1.83% (annualized), respectively, and ratio
of net investment income to average net assets would have been 4.15%
(annualized), 2.81%, 2.78% and 3.45% (annualized), respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Annualized
(g) Portfolio turnover was greater than expected during the year due to active
trading undertaken in response to market conditions.
<PAGE>
FINANCIAL HIGHLIGHTS
REAL ESTATE OPPORTUNITY FUND - CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 6.58
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.08
Net Gains on Securities
(Both Realized and Unrealized) 0.06
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.14
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.04
In Excess of Net Investment Income 0.06
================================================================================
TOTAL DISTRIBUTIONS 0.10
================================================================================
Net Asset Value-- End of Period $ 6.62
================================================================================
TOTAL RETURN 2.10%(b)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 143
Ratio of Expenses to Average Net Assets(c)(d) 1.77%(e)
Ratio of Net Investment Income (Loss) to Average Net Assets(c) 19.13%(e)
Portfolio Turnover Rate 272%(f)(g)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(c) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended March 31, 2000. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 2.04% (annualized)
and ratio of net investment income to average net assets would have been
18.86% (annualized).
(d) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from August 1, 1999 to March 31, 2000.
(g) Portfolio turnover was greater than expected during the year due to active
trading undertaken in response to market conditions.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TECHNOLOGY FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 58.17 $ 28.07 $ 35.97 $ 34.23 $ 34.33 $ 24.94
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(b) (0.03) (0.07) 0.00 0.13 0.07 (0.02)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 47.69 30.17 (1.45) 6.23 5.76 10.20
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 47.66 30.10 (1.45) 6.36 5.83 10.18
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(c) 0.00 0.00 0.00 0.13 0.07 0.00
Distributions from Capital Gains 3.91 0.00 3.16 4.49 5.86 0.79
In Excess of Capital Gains 0.00 0.00 3.29 0.00 0.00 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 3.91 0.00 6.45 4.62 5.93 0.79
=================================================================================================================
Net Asset Value -- End of Period $ 101.92 $ 58.17 $ 28.07 $ 35.97 $ 34.23 $ 34.33
=================================================================================================================
TOTAL RETURN 85.87%(d) 107.23% (2.47%) 20.71% 19.98% 42.19%
RATIOS
Net Assets -- End of Period
($000 Omitted) $5,034,087 $ 2,081,613 $ 1,008,771 $1,039,968 $ 789,611 $ 563,109
Ratio of Expenses to Average
Net Assets(e) 0.88%(f) 1.20% 1.17% 1.05% 1.08% 1.12%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.48%)(f) (0.79%) (0.49%) 0.41% 0.24% (0.06%)
Portfolio Turnover Rate 28%(d) 143% 178% 237% 168% 191%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) Net Investment Income aggregated less than $0.01 on a per share basis for
the year ended October 31, 1998.
(c) 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.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
TECHNOLOGY FUND -- INSTITUTIONAL CLASS
(For a Fund Share Outstanding Throughout Each Period)
PERIOD PERIOD
ENDED ENDED
MARCH 31 OCTOBER 31
- --------------------------------------------------------------------------------
2000(a) 1999(b)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 58.43 $ 33.85
================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss (0.04) (0.16)
Net Gains on Securities
(Both Realized and Unrealized) 48.07 24.74
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 48.03 24.58
================================================================================
LESS DISTRIBUTIONS
Distributions from Capital Gains 3.91 0.00
================================================================================
Net Asset Value-- End of Period $ 102.55 $ 58.43
================================================================================
TOTAL RETURN 86.14%(d) 72.61%(d)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 4,453,520 $ 951,925
Ratio of Expenses to Average Net Assets(e) 0.56%(f) 0.74%(f)
Ratio of Net Investment Loss to Average Net Assets (0.15%)(f) (0.36%)(f)
Portfolio Turnover Rate 28%(d) 143%(g)
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) From December 22, 1998, since inception of Institutional Class, to October
31, 1999.
(c) The per share information was computed based on average shares for the
period ended October 31, 1999.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level, and therefore represents
a full year.
<PAGE>
FINANCIAL HIGHLIGHTS
TECHNOLOGY FUND -- CLASS C (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 95.51
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.15)
Net Gains on Securities
(Both Realized and Unrealized) 6.49
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 6.34
================================================================================
Net Asset Value-- End of Period $ 101.85
================================================================================
TOTAL RETURN 6.63%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 2,970
Ratio of Expenses to Average Net Assets(d) 1.45%(e)
Ratio of Net Investment Loss to Average Net Assets (1.03%)(e)
Portfolio Turnover Rate 28%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TELECOMMUNICATIONS FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 31.80 $ 19.60 $ 15.31 $ 12.43 $ 12.30 $ 10.00
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(c)
=================================================================================================================
Net Investment Income (Loss)(d) (0.10) (0.00) 0.01 0.06 0.22 0.11
Net Gains on Securities
(Both Realized and Unrealized) 32.87 12.57 5.32 3.90 1.38 2.35
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 32.77 12.57 5.33 3.96 1.60 2.46
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(e) (0.00) 0.00 0.00 0.06 0.22 0.11
Distributions from Capital Gains 0.15 0.37 1.04 1.02 1.25 0.05
=================================================================================================================
TOTAL DISTRIBUTIONS 0.15 0.37 1.04 1.08 1.47 0.16
=================================================================================================================
Net Asset Value-- End of Period $ 64.42 $ 31.80 $ 19.60 $ 15.31 $ 12.43 $ 12.30
=================================================================================================================
TOTAL RETURN 103.25%(f) 65.52% 36.79% 33.93% 13.67% 24.83%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 4,125,890 $ 1,029,256 $ 276,577 $ 72,458 $ 50,516 $ 27,254
Ratio of Expenses to Average
Net Assets 0.99%(g)(h) 1.24%(g) 1.32%(g) 1.69%(g) 1.66%(g) 1.95%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.32%)(h) (0.49%) (0.16%) 0.56% 1.78% 1.43%
Portfolio Turnover Rate 24%(f) 62% 55% 96% 157% 215%
</TABLE>
(a) From August 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) Commencement of investment operations was August 1, 1994. (c) The per share
information was computed based on average shares for the period ended
March 31, 2000.
(d) Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the year ended July 31, 1999.
(e) Distributions in excess of net investment income for the period ended March
31, 2000, aggregated less than $0.01 on a per share basis.
(f) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(g) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(h) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
TELECOMMUNICATIONS FUND - CLASS C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 59.28
================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.06)
Net Gains on Securities
(Both Realized and Unrealized) 5.15
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 5.09
================================================================================
Net Asset Value-- End of Period $ 64.37
================================================================================
TOTAL RETURN 8.59%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 2,530
Ratio of Expenses to Average Net Assets(d) 1.49%(e)
Ratio of Net Investment Loss to Average Net Assets (0.86%)(e)
Portfolio Turnover Rate 24%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) The per share information was computed based on average shares.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from August 1, 1999 to March 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
UTILITIES FUND - INVESTOR CLASS (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31 YEAR ENDED OCTOBER 31
- -----------------------------------------------------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 17.68 $ 14.73 $ 12.42 $ 12.04 $ 10.61 $ 9.76
=================================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.04 0.17 0.30 0.32 0.37 0.44
Net Gains on Securities
(Both Realized and Unrealized) 3.95 3.20 2.56 1.25 1.43 0.84
=================================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 3.99 3.37 2.86 1.57 1.80 1.28
=================================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(b) 0.04 0.21 0.26 0.32 0.37 0.43
Distributions from Capital Gains 1.21 0.21 0.29 0.87 0.00 0.00
=================================================================================================================
TOTAL DISTRIBUTIONS 1.25 0.42 0.55 1.19 0.37 0.43
=================================================================================================================
Net Asset Value-- End of Period $ 20.42 $ 17.68 $ 14.73 $ 12.42 $ 12.04 $ 10.61
=================================================================================================================
TOTAL RETURN 23.99%(c) 23.22% 23.44% 14.37% 17.18% 13.48%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 260,554 $ 223,334 $ 177,309 $ 132,423 $ 153,082 $ 134,468
Ratio of Expenses to Average
Net Assets(d)(e) 1.24%(f) 1.26% 1.29% 1.22% 1.17% 1.18%
Ratio of Net Investment Income
to Average Net Assets(d) 0.50%(f) 1.02% 1.82% 2.74% 3.28% 4.47%
Portfolio Turnover Rate 18%(c) 32% 47% 55% 141% 185%
</TABLE>
(a) From November 1, 1999 to March 31, 2000, the Fund's current fiscal year-end.
(b) Distributions in excess of net investment income for the year ended October
31, 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) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended March 31, 2000 and for the years ended October 31, 1999, 1998, 1997,
1996 and 1995. If such expenses had not been voluntarily absorbed, ratio of
expenses to average net assets would have been 1.33% (annualized), 1.43%,
1.36%, 1.27%, 1.25% and 1.30%, respectively, and ratio of net investment
income to average net assets would have been 0.41% (annualized), 0.85%,
1.75%, 2.69%, 3.20% and 4.34%, respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
UTILITIES FUND -- CLASS C (For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
MARCH 31
- --------------------------------------------------------------------------------
2000(a)
PER SHARE DATA
Net Asset Value--Beginning of Period $ 19.91
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.01)
Net Gains on Securities
(Both Realized and Unrealized) 0.52
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.51
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.02
================================================================================
Net Asset Value--End of Period $ 20.40
================================================================================
TOTAL RETURN 2.58%(b)
RATIOS
Net Assets--End of Period ($000 Omitted) $ 248
Ratio of Expenses to Average Net Assets(c)(d) 1.83%(e)
Ratio of Net Investment Loss to Average Net Assets(d) (0.32%)(e)
Portfolio Turnover Rate 18%(f)
(a) From February 15, 2000, since inception of Class C, to March 31, 2000.
(b) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(c) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(d) Various expenses of the Fund were voluntarily absorbed by IFG for the period
ended March 31, 2000. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.83% (annualized)
and ratio of net investment income to average net assets would have been
(0.32%) (annualized).
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the period from November 1, 1999 to March 31, 2000.
<PAGE>
INVESCO FAMILY OF FUNDS
Investor Class Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
Stock
Growth & Income 21 IVGIX Gro&Inc
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
INVESCO Endeavor 61 IVENX Endeavor
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund 23 ISPIX SP500II
- --------------------------------------------------------------------------------
Bond
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond 35 FTIFX TxFre
- --------------------------------------------------------------------------------
Combination Stock & Bond
Equity Income 15 FIIIX EquityInc
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Real Estate Opportunity 42 IVSRX Realty
Technology 55 FTCHX Tech
Telecommunications 39 ISWCX Telecomm
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
International
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- --------------------------------------------------------------------------------
Money Market
U.S. Government Money 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money 40 FFRXX InvTaxFree
Treasurer's Money Market 96 IMRXX INVESCOMMR
Reserve
Treasurer's Tax-Exempt 95 ITTXX INVESCOTTE
Reserve
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES,
RISKS, AND EXPENSES, PLEASE VISIT OUR WEB SITE, CONSULT YOUR FINANCIAL ADVISOR,
OR CALL US AT 1-800-525-8085 FOR A PROSPECTUS. READ IT CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
<PAGE>
[INVESCO ICON] INVESCO FUNDS (R)
YOU
SHOULD
KNOW
WHAT
INVESCO
KNOWS (R)
We're easy to stay in touch with:
Investor Services: 1-800-525-8085
Personal Account Line: 1-800-424-8085
Advisor Sales: 1-800-6-INVESCO
On the World Wide Web: www.invesco.com
INVESCO Distributors, Inc.,(SM)
Distributor
Post Office Box 173707
Denver, Colorado 80217-3707
This information must be preceded or accompanied
by a current prospectus.
ASEC 9052 4/00
