<PAGE>
February 25, 1996
Dear Shareholder:
We are pleased to provide the 1995 Annual Report for INVESCO Advisor Funds
and hope that you will take a few minutes to review the report which will give
you additional perspective on the capital markets and how INVESCO manages your
money. We are delighted to report strong results.
As you know, effective January 15, 1996, The EBI Funds, Inc. became known as
the INVESCO Advisor Funds, Inc. The INVESCO name is becoming more recognized
in both institutional and individual investor circles. Additionally, the term
"Advisor" underscores the important role played by brokers, planners and con-
sultants. We hope you like our new name. The crucial elements for successful
investing, however--the portfolio managers, investment disciplines and fund
objectives--remain the same.
The year 1995 enjoyed a near perfect confluence of economic variables. The
economy continued to grow at a 3% pace, inflation remained under 3%, and cor-
porate profits increased over 20%. This permitted the Federal Reserve to ease
the money supply, resulting in a 2% decline in long term interest rates. This
phenomenon has been described as a "Goldilocks" economy--not too hot, not too
cold, but just right. As a consequence, the capital markets roared.
This past year was the S&P 500's best since 1958 and the Dow's best since
1975. The Dow posted a record number of new highs (69) and its smallest cor-
rection ever (3.3%). Throughout the year there has also been plenty of bullish
news for bonds, and the Lehman Government Corporate Index rose by 19.3%. The
INVESCO Advisor Funds participated fully in the good performance for 1995, as
detailed in the portfolio commentaries which follow.
Regardless of the asset class, it is INVESCO's goal to provide competitive
results with below market levels of volatility. The INVESCO Advisor Equity
Fund posted gains in excess of 30% last year. This performance was achieved
without relying heavily on the high flying technology sector, and thus it was
achieved with greater stability. The INVESCO Advisor Income Fund exceeded both
the Lipper Fixed Income Average and the Lehman Government/Corporate Index in
1995. The fund was concentrated in U.S. Treasury issues, again indicative of
our risk-averse approach.
Our asset allocation disciplines, Flex and MultiFlex, both provided value-
added relative to their respective benchmarks. In the INVESCO Advisor Flex
Fund we favored stocks over bonds for all of 1995. Flex exceeded the Lipper
Balanced Average for a one-year, three-year, and five-year periods. INVESCO
Advisor MultiFlex Fund is a well-diversified approach encompassing six asset
classes, all six of which outperformed their respective benchmarks last year.
The MultiFlex allocation target at 12/31/95 was as follows: real estate secu-
rities, 23.0%; small cap stocks, 22.6%; international stocks, 21.4%; large cap
stocks, 20.3% and fixed income, 12.7%.
The more specialized investment options--international stocks and real es-
tate securities--turned in solid performance as well. The INVESCO Advisor In-
ternational Value Fund benefited last year from its overweighting in the Euro-
pean markets which were the best performing region in 1995. The fund's perfor-
mance surpassed the EAFE (Europe, Australia, Far East) Index for the eight-
month period (inception through 12/31/95). The INVESCO Real Estate Fund like-
wise produced positive returns since its inception (5/1/95). In keeping with
our disciplined approach to real estate investing, we constantly seek out un-
dervalued assets while maintaining a diversified portfolio.
In unusually strong markets, it is easy to become carried away with good
performance and forget about risk levels. Sometimes it takes a difficult mar-
ket to remind us that it is even more important to minimize losses in down
markets than to outperform in up markets. Based on our heritage of handling
very risk-averse institutional accounts, we will continue to follow our disci-
plines which for 23 years have helped to provide consistent returns with a
high degree of stability. By refusing to concentrate our portfolio in a few
overpriced areas, INVESCO has worked to minimize the downside of corrections
as the market returns to more normal relationships.
Once again, let me say how much we appreciate the confidence which you have
placed in INVESCO by allowing us to manage your investments in INVESCO Advisor
Funds. If you have any questions at all, please call our Shareholder Services
toll-free line at (800) 554-1156 or feel free to contact me directly.
Sincerely,
/s/ Hubert L. Harris, Jr.
- -----------------------------
Hubert L. Harris, Jr.
President
<PAGE>
INVESCO ADVISOR FLEX FUND
MARKET PERSPECTIVE
The year 1995 was a record setting year for the financial markets and cre-
ated substantial wealth for investors. The fourth quarter continued the strong
advance of the first three with the S&P 500 up another 6.0% and the Lehman
Government Corporate Index up 4.6%. For the year, these two market proxies
were up 37.6% and 19.3%, respectively. Stocks, small to large, posted returns
in excess of 30% for the year. Fixed income securities also leaped ahead with
shorter maturities up over 11% and long bonds up in the neighborhood of 25%-
30%.
PORTFOLIO COMMENTS
The INVESCO Advisor Flex Fund closed the year with a 27.3% return, an excep-
tional result for a "balanced" fund as usually returns of this magnitude are
experienced by more aggressive portfolios. INVESCO's Flex discipline adds
value three ways: asset allocation, stock selection and maturity targeting.
Each part of the investment process worked well throughout the year.
The equity portion of the INVESCO Advisor Flex Fund was in line with the
overall stock market. The best performing sectors for the fund during the
fourth quarter were capital goods (+10.7%), utilities (+9.5%) and consumer
staples (+8.7%). The top three stocks in the quarter were: Computer Associates
(+34.8%), Eli Lilly (+25.9%), and Rite Aid (+22.9%). Manufacturing and
processing(-4.2%), consumer discretionary (-1.6%), and finance (+2.7%) stocks
were among the laggards. The Fund's long maturity bond profile has benefited
performance throughout the year and this segment outperformed its benchmarks
for the quarter and the year as a whole. Lastly, INVESCO's asset allocation
has favored equities all year long. This has proven to be beneficial too,
since stocks have outperformed bonds. At year end, the asset mix was 66% equi-
ties with the remainder in fixed income securities.
On the bond side, INVESCO Advisor Flex continues to emphasize intermediate
maturities. There has been no change in the Fund's average maturity since Sep-
tember 1994. With sanguine inflation and economic activity, interest rates
have not seen upward pressure. Although the bond market has had a great rally
since a year ago, the relationship between nominal interest rates and infla-
tion is in line with historic averages. Our current policy of a targeted matu-
rity of 12 years will remain in place until this relationship dips signifi-
cantly below average or the Federal Reserve's monetary policy tightens.
FLEX FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor Flex Fund Flex Benchmark CPI Treasury Bill Lipper Balanced
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
4/1/88 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
1988 26,113.00 26,925.00 25,790.50 26,248.74 26,990.00
1989 30,620.00 33,532.00 26,875.00 28,534.86 32,307.03
1990 30,105.00 34,086.00 28,731.81 30,835.66 32,520.26
1991 37,571.00 42,539.00 29,546.13 32,594.58 40,920.24
1992 40,472.00 45,772.00 30,444.78 33,757.60 43,886.96
1993 44,713.00 50,528.00 31,245.04 34,836.08 49,021.73
1994 45,000.00 50,214.00 32,066.80 36,385.41 47,801.09
1995 57,285.00 65,258.11 32,910.88 38,503.04 59,564.94
</TABLE>
INVESCO Advisor Flex Fund's average annual total returns for the periods
------------------------------------------------------------------------
ended December 31, 1995 are:*
- -----------------------------
1 year: 27.30%; 3 years: 12.28%; 5 years: 13.73%;
-------------------------------------------------
and, since inception: 11.05%
----------------------------
The line graphs on this page, and hereafter, illustrate the value of a $25,000
- ------------------------------------------------------------------------------
investment in the INVESCO Advisor Funds, plus reinvested dividends and capital
- ------------------------------------------------------------------------------
gains distributions, for the periods through 12/31/95. (Of course, past per-
- ----------------------------------------------------------------------------
formance is not a guarantee of future returns.)* The charts and other total
- ---------------------------------------------------------------------------
return figures cited reflect each fund's operating expenses, but the indices
- ----------------------------------------------------------------------------
do not have expenses, which would, of course, have lowered their performance.
- -----------------------------------------------------------------------------
INVESCO ADVISOR EQUITY FUND
MARKET PERSPECTIVE
The year 1995 enjoyed a near perfect confluence of economic variables. The
economy continued to grow at a 3% pace, inflation remained under 3% and corpo-
rate profits increased over 20%. This permitted the Federal Reserve to reverse
its position from one of tightening to one of ease, resulting in a 2% decline
in long term interest rates. With little competition from interest bearing in-
vestments, the stock market roared.
The past year was the best for the S&P 500 since 1958 and the Dow Jones
Industrials' best since 1975. The Dow posted a record number of new highs (69)
and its smallest
2
<PAGE>
correction ever (3.3%). The last decade produced the highest ten-year return
this century and includes the longest time without a correction of 10% or
more.
PORTFOLIO COMMENTS
The INVESCO Advisor Equity Fund returned 30.3% for 1995. Our strategy re-
mains to maintain a well diversified, high quality portfolio with value char-
acteristics. The advantage to our strategy is that when the market returns to
more "normal" valuations, we tend to outperform. Considering how well the mar-
kets have done over the past year, our concentration on risk control, diversi-
fication and quality may prove to be valuable attributes in 1996.
During the fourth quarter, capital goods and energy were the two best per-
forming sectors in the fund, up 12.4% and 10.7%, respectively. Royal Dutch and
Exxon led the energy sector while Computer Associates and Lockheed Martin were
the best performing stocks in the capital goods sector. The worst performing
sector was basic industry with all holdings having negative returns for the
quarter.
Having declined in value, the consumer cyclical stocks continue to represent
good value; therefore, we remain overweighted in that sector. We are also
overweighted in financials and underweighted in technology, energy, manufac-
turing and processing and utilities. During the fourth quarter we sold Flem-
ing, a food wholesaler and K Mart, and added Archer Daniels, a food processor
and Circuit City. We also added to our existing positions in Russell Corp.,
Repsol and First Union.
EQUITY FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF CHART A APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Growth &
S&P 500 Invesco Advisor Equity Fund CPI Treasury Bill Income Index
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
1985 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
1986 25,079.04 26,939.94 25,285.92 26,584.02 29,410.00
1987 31,151.00 28,879.88 26,583.80 28,232.29 30,180.54
1988 36,325.36 32,928.83 27,612.32 30,239.70 35,724.71
1989 47,934.97 40,107.30 28,865.21 32,873.41 44,216.47
1990 46,449.09 38,607.38 30,859.53 35,524.04 41,563.48
1991 60,601.80 51,574.80 31,734.15 37,550.39 53,043.32
1992 65,219.80 54,071.33 32,699.34 38,890.24 58,151.39
1993 71,775.91 59,024.24 33,558.87 40,132.70 66,653.12
1994 72,700.12 60,612.17 34,441.48 41,917.59 66,199.88
1995 99,933.58 78,965.53 35,348.07 44,357.20 86,721.84
</TABLE>
INVESCO Advisor Equity Fund's average annual total returns for the periods
--------------------------------------------------------------------------
ended December 31, 1995 are:*
- -----------------------------
1 year: 30.28%; 3 years: 13.45%; 5 years: 15.39%;
-------------------------------------------------
and, 10 years: 12.19%
---------------------
INVESCO ADVISOR MULTIFLEX FUND
MARKET PERSPECTIVE
In addition to the robust returns of large cap stocks and bonds, the more
specialized areas of small cap stocks, international stocks and real estate
securities also posted solid gains for the year. Small cap stocks, as measured
by the Russell 2000 Index, increased by 28.5%. International stocks showed a
strong resurgence in the second half of 1995 and appreciated by 11.2% as mea-
sured by the EAFE (Europe, Australia, Far East) Index. Additionally real es-
tate securities rebounded with a 15.3% gain as measured by the NAREIT (Na-
tional Association of Real Estate Investment Trusts) Index.
PORTFOLIO COMMENTS
The total return for INVESCO Advisor MultiFlex continued to be solid, ad-
vancing 21.6% for 1995. All of the asset classes performed above their bench-
marks for the year. Large cap stocks had the best returns for the year, while
international equities had the best performance versus the benchmark.
The LARGE CAP portion of MultiFlex exceeded that of the S&P 500 for the
year, aided by strong second half performance of many higher quality multina-
tional companies. The INTERNATIONAL component returned 19.0% for the year,
well ahead of the EAFE benchmark. INVESCO's overweighting in the more stable
European markets was a significant contributing factor to the component's over
performance, as the MSCI Europe Index rose by 22.2%, compared to a return of
3.0% by the MSCI Pacific Basin Index. For the year, the SMALL CAP component
handily beat the benchmark, gaining 33.3% versus 28.5% for the Russell index.
The REAL ESTATE portion of the fund outperformed the NAREIT Index for the year
16.1% versus 15.3%. Outperforming sectors for the quarter included office, in-
dustrial and healthcare properties. Finally, the fixed income component of
MultiFlex returned 19.6% for the year versus 18.4% for the benchmark. A
slightly longer average maturity relative to the index was primarily responsi-
ble for the portfolio's outperformance, as well as an underweighting in mort-
gages, the worst performing sector.
At year-end, MultiFlex was positioned 63% in the more specialized asset
classes of international stocks, small cap stocks and real estate securities.
The target asset allo-
<PAGE>
cation was: real estate, 23.0%; small cap, 22.6%; international, 21.4%; large
cap, 20.3%; and fixed income, 12.7%.
MULTIFLEX FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor
MultiFlex Fund S&P 500 CPI Treasury Bill MultiFlex Benchmark
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/15/93 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
12/93 25,115.00 25,175.00 25,049.71 25,065.05 25,612.50
3/94 24,489.64 24,225.90 25,174.98 25,273.73 25,497.24
6/94 24,462.70 24,315.54 25,326.76 25,537.32 25,622.18
9/94 24,929.94 25,509.43 25,555.42 25,832.16 26,160.25
12/94 24,857.64 25,496.68 25,708.53 26,179.82 26,050.37
3/95 25,695.34 27,985.15 25,915.32 26,572.24 27,154.91
6/95 27,491.45 30,626.95 26,147.30 26,959.18 28,873.81
9/95 29,105.19 33,061.79 26,253.35 27,333.02 30,536.95
12/95 30,225.74 35,045.50 26,385.24 27,703.48 31,810.34
</TABLE>
INVESCO Advisor MultiFlex Fund's average annual total returns for the periods
-----------------------------------------------------------------------------
ended December 31, 1995 are:*
- -----------------------------
1 year: 21.58%; and, since inception: 9.54%
-------------------------------------------
INVESCO ADVISOR INTERNATIONAL VALUE FUND
MARKET PERSPECTIVE
For the final three months of the year, the international stock markets
maintained the recovery seen in the previous quarter, and the EAFE (Europe,
Australia, Far East) Index appreciated by 11.2% for the year. The dominant
theme for the European market was the progress by the individual European Com-
munity members toward the criteria required for monetary union by the end of
the decade. Interest rates moved lower across Europe, led by the Bundesbank,
which responded to zero economic growth in the third quarter and below target
monetary expansion by cutting the discount rate by 1/2% to 3%. This was the
third reduction in 1995 and brings the rate to its lowest level since 1988.
The most attractive markets were Switzerland, the Netherlands and Belgium.
In the Asian market, Japan, the largest component of EAFE, moved back into
favor in the fourth quarter after exhibiting weakness for most of the year.
The authorities made further attempts to revitalize the economy by easing mon-
etary policy. Regarding the other major Asian markets, Hong Kong languished
for much of the quarter and Singapore began to break out of its previous nar-
row trading range.
PORTFOLIO COMMENTS
The INVESCO Advisor International Value Fund was initiated 5/1/95, following
the same investment principles utilized for our institutional accounts since
1987. For the eight month period ended 12/31/95, the International Value Fund
appreciated 11.3% compared to 5.9% for the EAFE Index for that same period.
The fund benefited from an overweighting in the European markets as the MSCI
Europe Index rose by 22.2% for the year versus a return of 3.0% for the MSCI
Pacific Basin Index.
Our emphasis is on constructing a portfolio of large and medium capitaliza-
tion international securities which are statistically well diversified by both
country and industry sectors. The portfolio is invested in twelve countries,
and compared to the EAFE Index, we are overweighted in Australia, Denmark, the
Netherlands, Spain, Sweden and Switzerland. The major underweighting continues
to be Japan, which represents over 40% of the Index, but only 20% of the fund.
INTERNATIONAL VALUE FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor International Value EAFE CPI Treasury Bill
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/1/95 25,000.00 25,000.00 25,000.00 25,000.00
6/95 25,537.50 25,180.00 25,073.73 25,117.28
9/95 26,400.67 26,232.52 25,175.42 25,465.58
12/95 27,818.38 27,294.94 25,301.90 25,810.73
</TABLE>
INVESCO Advisor International Value Fund's average annual total return for
--------------------------------------------------------------------------
the period ended December 31, 1995 is:*
---------------------------------------
since inception (May 1, 1995): 11.28%
-------------------------------------
INVESCO ADVISOR REAL ESTATE FUND
MARKET PERSPECTIVE
Real estate securities staged a rally in December as a combination of higher
than average yield spreads and strong underlying fundamentals proved enticing
to many investors. For the fourth quarter REITs produced a 4.1% total return
as measured by the NAREIT Equity Index. De-
4
<PAGE>
spite the strong December gain, real estate securities remain attractively
priced relative to other equity market sectors and particularly on a yield
spread basis compared to the 10-year US Treasury, where the month-end spread
appears very attractive. Equity REITs provided investors with an attractive
15.3% total return in 1995.
PORTFOLIO COMMENTS
The INVESCO Advisor Real Estate Fund showed a solid return of 9.1% since its
inception at 5/1/95. Comparing REIT yields to those of the 10-year US Trea-
sury, the current spread of 180 basis points is one of the widest in the past
five years, indicating there is still good value for real estate securities.
INVESCO's investment discipline continues to focus on sectors and companies
that offer relatively high value in terms of rental income growth and, ulti-
mately, funds from operations growth. Generally, those sectors currently of-
fering the greatest value on this basis are office, industrial and self stor-
age. Among individual issues Cali, Beacon and Koger were the top performing
office issues and Shurgard outperformed among self storage issues.
The fund continues to be well diversified geographically and by property
type. Our objective is to participate in the faster growing regions while
maintaining our risk averse approach and allowing our discipline to recognize
undervalued property types. Over nine hundred properties are represented in
the fund.
REAL ESTATE FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor Real Estate Fund NAREIT CPI Treasury Bill
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
05/1/95 25,000.00 25,000.00 25,000.00 25,000.00
06/95 25,487.50 26,467.50 25,073.73 25,117.28
09/95 26,410.15 27,711.47 25,175.42 25,465.58
12/95 27,281.68 28,858.73 25,301.90 25,810.73
</TABLE>
INVESCO Advisor Real Estate Fund's average annual total returns for the pe-
---------------------------------------------------------------------------
riod ended December 31, 1995 is:*
- ---------------------------------
since inception (May 1, 1995): 9.12%
------------------------------------
INVESCO ADVISOR INCOME FUND
MARKET PERSPECTIVE
Bond yields fell another 1/2% in the fourth quarter making the decline in
long-term interest rates almost 2% for all of 1995. The declining rate pattern
propelled bond prices upward strongly throughout 1995, and resulted in returns
of 4.7% for the quarter and 19.2% for the year in the Lehman
Government/Corporate Index. This is the third highest annual return on record
for the index and the best since 1985. Longer maturities were the best per-
formers for the quarter and for the year. Corporates led sector performance,
although long governments outperformed long corporates. Mortgage backed secu-
rities trailed for the quarter and the year.
Throughout the year there has been plenty of bullish news for bonds. Except
for the third quarter, gross domestic product growth averaged only 2% on an
annualized basis, and it appears there are few remaining sources of stimulus
to drive the economy higher, which is good news for the bond market. Federal
government deficits have fallen, and on the inflation front, which is always
the biggest factor in the minds of bond investors, the news was good all year.
The Producer Price Index did jump by 0.5% in November, but year-over-year the
index is fairly steady at about 2%, and the Consumer Price Index year-over-
year is less than 3%.
PORTFOLIO COMMENTS
For the year the INVESCO Advisor Income Fund enjoyed a 21.1% return compared
with 16.0% for the Lipper Income Fund Index and 19.2% for the Lehman
Government/Corporte Index. Longer maturities accounted for the fund's success
during 1995 as interest rates fell and bond prices rose substantially.
Throughout 1995, the fund was overweighted in U.S. Treasuries, underweighted
in corporates, and had a very small exposure to mortgage backed securities.
Long government securities were the best performing single category for the
year. Mortgages underperformed both government and corporate bonds.
The Federal Reserve policy cycle for interest rates continued to point down
in the fourth quarter as the Central Bank lowered its Fed Funds rate for the
second time during
5
<PAGE>
1995. Bond valuation levels, however, slipped below average, although not to
levels low enough to trigger a change in maturity strategy. Relative sector
values still favor Treasuries, but mortgage backed securities have become rea-
sonably attractive as yield spreads have widened.
INCOME FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Adviser Income Fund LBG/CBI CPI Treasury Bill Lipper Corp. BBE
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1985 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
1986 28,264.96 28,905.19 25,285.92 26,584.02 28,430.00
1987 28,010.68 29,567.19 26,538.80 28,232.29 29,135.06
1988 29,576.48 31,807.91 27,612.32 30,239.70 31,838.80
1989 32,276.81 36,337.18 28,865.21 32,873.41 35,172.32
1990 34,800.98 39,346.25 30,859.53 35,524.04 37,518.31
1991 39,137.33 45,692.50 31,734.15 37,550.39 43,873.92
1992 40,991.89 49,156.64 32,699.34 38,890.24 47,546.16
1993 44,021.23 54,509.48 33,558.87 40,132.70 53,632.07
1994 43,229.56 52,574.61 34,441.48 41,917.59 51,170.36
1995 52,359.65 62,689.96 35,348.07 44,357.20 60,401.49
</TABLE>
INVESCO Advisor Income Fund's average annual total returns for the periods
--------------------------------------------------------------------------
ended December 31, 1995 are:
- ----------------------------
1 year: 21.12%; 3 years: 8.50%; 5 years: 8.51%;
-----------------------------------------------
and, 10 years: 7.67%
--------------------
*Total return assumes reinvestment of dividends and capital gain distribu-
--------------------------------------------------------------------------
tions. Past performance is not a guarantee of future results. Investment return
- -------------------------------------------------------------------------------
and principal value will vary so that, when redeemed, an investor's shares may
- ------------------------------------------------------------------------------
be worth more or less than when purchased. The S&P 500 is an unmanaged index of
- -------------------------------------------------------------------------------
common stocks considered representative of the broad market. The Lehman
- -----------------------------------------------------------------------
Government/Corporate Index (LBG/CBI) is an unmanaged index considered represen-
- -------------------------------------------------------------------------------
tative of the broad bond market. Consumer Price Index (CPI) is a representative
- -------------------------------------------------------------------------------
index of inflation in the economy. European Australian, Far East (EAFE) index
- -----------------------------------------------------------------------------
is an unmanaged index of stocks considered representative of foreign markets.
- -----------------------------------------------------------------------------
National Association of Real Estate Investment Trust (NAREIT) is an unmanaged
- -----------------------------------------------------------------------------
index of common stocks of all tax-qualified equity REITs listed on major U.S.
- -----------------------------------------------------------------------------
exchanges or OTC. Lipper indices represent the average performance of similar
- -----------------------------------------------------------------------------
funds, as tracked by Lipper Analytical Services. Flex Benchmark is 60% S&P 500
- ------------------------------------------------------------------------------
and 40% LBG/CBI. MultiFlex Benchmark is 20% S&P 500, 20% LBG/CBI, 20% Russell
- -----------------------------------------------------------------------------
2000 Index (an index of the 2,000 smallest common stocks), 20% NAREIT and 20%
- -----------------------------------------------------------------------------
EAFE.
- ----
INVESCO Advisor Funds, Inc.
STATEMENT OF INVESTMENT SECURITIES
December 31, 1995
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND
COMMON STOCKS 66.17%
BASIC MATERIALS 3.37%
Alcan Aluminum Ltd...................................... 75,000 $ 2,334,375
Dow Chemical Co......................................... 60,000 4,222,500
Imperial Chemical Industries PLC, Sponsored ADR......... 65,000 3,038,750
Westvaco Corp........................................... 135,000 3,746,250
------------
13,341,875
------------
CAPITAL GOODS 6.35%
Boeing Co............................................... 80,000 6,270,000
COMPAQ Computer Corp.*.................................. 75,000 3,600,000
General Electric Co..................................... 75,000 5,400,000
Lockheed Martin Corp.................................... 81,500 6,438,500
Snap-On Tools Corp...................................... 75,000 3,393,750
------------
25,102,250
------------
CONSUMER CYCLICAL 10.41%
Deluxe Corp............................................. 100,000 2,900,000
Ford Motor Co........................................... 175,000 5,075,000
Gannett Company, Inc.................................... 60,000 3,682,500
K Mart Corp............................................. 200,000 1,450,000
Liz Claiborne, Inc...................................... 125,000 3,468,750
McDonald's Corp......................................... 110,000 4,963,750
Melville Corp........................................... 110,000 3,382,500
Penney (J.C.) Co., Inc. ................................ 75,000 3,571,875
Rite-Aid Corp........................................... 125,000 4,281,250
Tandy Corp.............................................. 75,000 3,112,500
VF Corp................................................. 100,000 5,275,000
------------
41,163,125
------------
CONSUMER STAPLES 13.30%
Abbott Laboratories..................................... 100,000 4,175,000
American Brands, Inc.................................... 110,000 4,908,750
American Home Products Corp............................. 60,000 5,820,000
Anheuser-Busch Cos., Inc................................ 85,000 5,684,375
Columbia/HCA Healthcare, Inc. .......................... 100,000 5,075,000
Fleming Companies, Inc.................................. 100,000 2,062,500
Heinz (H.J.) Co......................................... 150,000 4,968,750
Lilly (Eli) & Co........................................ 100,000 5,625,000
Philip Morris Cos., Inc................................. 65,000 5,882,500
SuperValu, Inc.......................................... 87,000 2,740,500
Unilever N.V............................................ 40,000 5,630,000
------------
52,572,375
------------
</TABLE>
6
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO ADVISOR FLEX FUND (CONTINUED)
<S> <C> <C>
DIVERSIFIED 5.98%
DuPont (E.I.) de Nemours & Co........................... 60,000 $ 4,192,500
Hanson PLC, Sponsored ADR............................... 250,000 3,812,500
Minnesota Mining & Manufacturing Co..................... 70,000 4,637,500
National Service Industries, Inc........................ 75,000 2,428,125
Norsk Hydro, Sponsored ADR.............................. 50,000 2,093,750
Phelps Dodge Corp....................................... 50,000 3,112,500
Textron, Inc............................................ 50,000 3,375,000
------------
23,651,875
------------
ENERGY 3.02%
Amoco Corp.............................................. 50,000 3,593,750
Repsol, Sponsored ADR................................... 125,000 4,109,375
Royal Dutch Petroleum Co................................ 30,000 4,233,750
------------
11,936,875
------------
FINANCE 12.78%
American General Corp................................... 80,000 2,790,000
Dun & Bradstreet Corp................................... 65,000 4,208,750
First Chicago NBD Corp.................................. 190,000 7,505,000
First of America Bank Corp.............................. 100,000 4,437,500
First Union Corp........................................ 88,000 4,895,000
Marsh & McLennan Companies, Inc......................... 50,000 4,437,500
Morgan Stanley Group, Inc............................... 50,000 4,031,250
NationsBank Corp........................................ 75,000 5,221,875
Ohio Casualty Corp...................................... 110,000 4,262,500
SAFECO Corp............................................. 120,000 4,140,000
Wachovia Corp........................................... 100,000 4,575,000
------------
50,504,375
------------
TECHNOLOGY 4.37%
Computer Associates International, Inc.................. 120,000 6,825,000
Hewlett-Packard Co...................................... 70,000 5,862,500
International Business Machines Corp.................... 50,000 4,587,500
------------
17,275,000
------------
TRANSPORTATION & SERVICES 0.82%
Browning-Ferris Industries, Inc......................... 110,000 3,245,000
------------
UTILITIES 5.77%
NYNEX Corp.............................................. 80,000 4,320,000
SCEcorp................................................. 250,000 4,437,500
Telefonica de Espana, Sponsored ADR..................... 75,000 3,140,625
Telefonos de Mexico, "L" Sponsored ADR 110,000 3,506,250
Texas Utilities Co...................................... 100,000 4,112,500
Unicom Corp............................................. 100,000 3,275,000
------------
22,791,875
------------
TOTAL COMMON STOCKS
(Cost $191,983,877).................................... 261,584,625
------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS 0.97%
TRANSPORTATION & SERVICES 0.97%
Illinois Central Corp. (Cost $3,832,284)............... 100,000 $ 3,837,500
------------
TOTAL COMMON & PREFERRED STOCKS
(Cost $195,816,161)................................... 265,422,125
------------
FIXED INCOME SECURITIES 28.39%
U.S. GOVERNMENT OBLIGATIONS 24.55%
U.S. TREASURY NOTES
7.375%, 05/15/1996.................................... 2,500,000 2,519,533
5.500%, 07/31/1997.................................... 4,000,000 4,018,748
8.250%, 07/15/1998.................................... 2,000,000 2,140,624
7.125%, 10/15/1998.................................... 5,000,000 5,239,065
8.875%, 02/15/1999.................................... 4,250,000 4,685,625
6.375%, 07/15/1999.................................... 5,000,000 5,167,185
8.750%, 08/15/2000.................................... 8,000,000 9,090,000
7.875%, 08/15/2001.................................... 9,000,000 10,063,125
9.375%, 02/15/2006.................................... 4,250,000 5,467,888
9.250%, 02/15/2016.................................... 15,000,000 20,629,680
8.125%, 08/15/2019.................................... 12,000,000 15,090,000
7.250%, 08/15/2022.................................... 7,000,000 8,104,691
------------
92,216,164
------------
U.S. TREASURY STRIPS PO*
0.000%, 08/15/2014.................................... 15,000,000 4,803,600
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $85,012,062).................................... 97,019,764
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 1.23%
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668........................ 1,642,019 1,657,413
7.000%, 10/15/2008 Pool #372807........................ 1,472,046 1,505,628
6.000%, 11/15/2008 Pool #365945........................ 1,713,952 1,702,168
------------
4,865,209
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $4,960,906)..................................... 4,865,209
------------
CORPORATE BONDS 2.61%
FINANCE 1.03%
Associates Corp., North America, 4.750%, 08/01/1996.... 1,500,000 1,493,913
NationsBank Corp.,5.375%, 04/15/2000................... 1,550,000 1,524,009
National City Corp.,
7.200%, 05/15/2005.................................... 1,000,000 1,065,262
------------
4,083,184
------------
INDUSTRIAL 1.05%
Conagra, Inc., 9.750%, 11/01/1997...................... 1,000,000 1,069,051
</TABLE>
7
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO ADVISOR FLEX FUND (CONTINUED)
<S> <C> <C>
Ford Motor Co., 7.500%, 11/15/1999..................... 750,000 $ 792,207
Rockwell International, Inc.,
6.625%, 06/01/2005.................................... 1,500,000 1,558,496
Wal Mart Stores, Inc.,
5.500%, 03/01/1998.................................... 750,000 749,419
------------
4,169,173
------------
UTILITIES 0.53%
Pennsylvania Power & Light Co.,
6.550%, 03/01/2006.................................... 1,900,000 1,929,399
Union Electric Co.,
6.750%, 10/15/1999.................................... 150,000 154,757
------------
2,084,156
------------
TOTAL CORPORATE BONDS
(Cost $10,178,457).................................... 10,336,513
------------
TOTAL FIXED INCOME SECURITIES
(Cost $100,151,425)................................... 112,221,486
------------
SHORT TERM INVESTMENTS 4.47%
COMMERCIAL PAPER 2.53%
DuPont (E.I.) de Nemours and Co.
5.720%, 01/12/1996.................................... 5,000,000 4,992,055
Gannett Company, Inc.
5.720%, 01/19/1996.................................... 5,000,000 4,986,494
------------
9,978,549
------------
OTHER SECURITIES 1.94%
United Missouri Bank, Money Market Fiduciary 4.680%.... 7,685,987 7,685,987
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $17,664,536).................................... 17,664,536
------------
TOTAL INVESTMENTS
(100.00%) (Cost $313,632,122)......................... $395,308,147
============
*Security is non-income producing.
INVESCO ADVISOR EQUITY FUND
- ---------------------------
COMMON STOCKS 96.74%
BASIC MATERIALS 3.73%
Akzo N.V. ADR.......................................... 13,800 $ 800,400
Imperial Chemical Industries PLC, Sponsored ADR........ 33,200 1,552,100
Nalco Chemical Co...................................... 21,000 632,625
Westvaco Corp.......................................... 45,000 1,248,750
------------
4,233,875
------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS 9.83%
Automatic Data Processing, Inc.......................... 13,000 $ 965,250
Boeing Co............................................... 28,400 2,225,850
Emerson Electric Co..................................... 12,000 981,000
Lockheed Martin Corp.................................... 35,860 2,832,940
Pitney Bowes, Inc....................................... 25,700 1,207,900
Raytheon Co............................................. 39,400 1,861,650
WMX Technologies, Inc................................... 36,000 1,075,500
------------
11,150,090
------------
CONSUMER CYCLICAL 14.81%
Circuit City Stores, Inc................................ 54,000 1,491,750
Cooper Tire and Rubber Co............................... 52,000 1,280,500
Disney (Walt) Co........................................ 30,400 1,793,600
Donnelley (R.R.) & Sons Co.............................. 30,000 1,181,250
Ford Motor Co........................................... 45,716 1,325,752
Gannett Company, Inc................. .................. 21,000 1,288,875
Maytag Corp............................................. 86,900 1,759,725
McDonald's Corp......................................... 53,400 2,409,675
Penney ( J. C.) Co., Inc................................ 40,000 1,905,000
Russell Corp............................................ 56,000 1,554,000
Shaw Industries, Inc.................................... 54,500 803,875
------------
16,794,002
------------
CONSUMER STAPLES 25.17%
Abbott Laboratories..................................... 50,400 2,104,200
American Home Products Corp............................. 21,000 2,037,000
Anheuser-Busch Cos., Inc................................ 23,200 1,551,500
Archer-Daniels-Midland Co............................... 70,000 1,260,000
Columbia/HCA Healthcare, Inc............................ 46,800 2,375,100
Giant Food, Inc., Cl. A................................. 59,000 1,858,500
Heinz (H.J.) Co......................................... 58,350 1,932,844
Lilly (Eli) & Co........................................ 50,000 2,812,500
Merck & Co., Inc........................................ 41,900 2,754,925
PepsiCo, Inc............................................ 35,000 1,955,625
Philip Morris Cos., Inc................................. 25,000 2,262,500
Schering-Plough Corp.................................... 15,600 854,100
Tyson Foods, Inc., Cl. A................................ 46,000 1,201,750
UST, Inc................................................ 54,000 1,802,250
Warner Lambert Co....................................... 18,300 1,777,387
------------
28,540,181
------------
DIVERSIFIED 6.41%
General Electric Co..................................... 29,000 2,088,000
Hanson PLC ADR.......................................... 111,000 1,692,750
Minnesota Mining & Manufacturing Co..................... 20,000 1,325,000
Textron, Inc............................................ 32,000 2,160,000
------------
7,265,750
------------
</TABLE>
8
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO ADVISOR EQUITY FUND (CONTINUED)
<S> <C> <C>
ENERGY 6.71%
Amoco Corp.............................................. 24,600 $ 1,768,125
Exxon Corp.............................................. 22,000 1,762,750
Repsol, Sponsored ADR................................... 60,000 1,972,500
Royal Dutch Petroleum Co................................ 14,900 2,102,763
------------
7,606,138
------------
FINANCE 16.43%
American General Corp................................... 52,000 $ 1,813,500
American International Group, Inc....................... 23,100 2,136,750
Boatmen's Bancshares, Inc............................... 35,000 1,430,625
Dun & Bradstreet Corp................................... 40,000 2,590,000
First Chicago NBD Corp.................................. 53,800 2,125,100
First of America Bank Corp.............................. 40,000 1,775,000
First Union Corp........................................ 30,000 1,668,750
General RE Corp......................................... 4,400 682,000
Jefferson-Pilot Corp.................................... 24,000 1,116,000
MBIA, Inc............................................... 7,000 525,000
Morgan Stanley Group, Inc............................... 18,500 1,491,563
SAFECO Corp............................................. 37,000 1,276,500
------------
18,630,788
------------
TECHNOLOGY 6.74%
COMPAQ Computer Corp.*.................................. 21,000 1,008,000
Computer Associates International, Inc.................. 46,500 2,644,688
Hewlett-Packard Co...................................... 28,000 2,345,000
International Business Machines Corp.................... 18,000 1,651,500
------------
7,649,188
------------
TRANSPORTATION & SERVICES 0.93%
Hunt (J.B.) Transport Services, Inc..................... 63,250 1,059,437
------------
UTILITIES 5.98%
CINergy Corp............................................ 61,000 1,868,125
Southern New England Telecommunications Corp............ 60,000 2,385,000
Telefonos de Mexico, "L" Sponsored ADR.................. 40,800 1,300,500
Texas Utilities Co...................................... 30,000 1,233,750
------------
6,787,375
------------
TOTAL COMMON STOCKS
(Cost $80,446,044)..................................... 109,716,824
------------
SHORT TERM INVESTMENTS 3.26%
COMMERCIAL PAPER 1.76%
MetLife Funding, Inc.
5.680%, 01/10/1996 (Cost $1,997,476)................... 2,000,000 1,997,476
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
OTHER SECURITIES 1.50%
United Missouri Bank, Money Market Fiduciary 4.680%...... 1,703,555 $ 1,703,555
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $3,701,031)....................................... 3,701,031
------------
TOTAL INVESTMENTS
(100.00%) (Cost $84,147,075)............................. $113,417,855
============
*Security is non-income producing.
INVESCO ADVISOR MULTIFLEX FUND
- ------------------------------
COMMON STOCKS 80.78%
LARGE CAPITALIZATION EQUITIES 17.87%
Abbott Laboratories...................................... 13,400 $ 559,450
American General Corp.................................... 14,500 505,688
American Home Products Corp.............................. 5,500 533,500
American International Group, Inc........................ 5,550 513,375
Archer-Daniels-Midland Co................................ 25,000 450,000
Atlantic Richfield Co.................................... 3,900 431,925
Boatmen's Bancshares, Inc................................ 14,100 576,337
Boeing Co................................................ 3,400 266,475
Bristol-Myers Squibb Co.................................. 7,500 644,063
CINergy Corp............................................. 18,000 551,250
Circuit City Stores, Inc................................. 9,900 273,487
Columbia/HCA Healthcare, Inc............................. 12,619 640,414
COMPAQ Computer Corp.*................................... 5,100 244,800
Computer Associates International, Inc................... 5,400 307,125
Cooper Tire and Rubber Co................................ 13,100 322,588
Detroit Edison Co........................................ 12,000 414,000
Disney (Walt) Co......................................... 9,600 566,400
Dow Chemical Co.......................................... 8,100 570,037
Dun & Bradstreet Corp.................................... 9,500 615,125
Emerson Electric Co...................................... 6,200 506,850
Exxon Corp............................................... 7,000 560,875
Federal National Mortgage Assn........................... 5,200 645,450
First Chicago NBD Corp................................... 9,300 367,350
Fleming Companies, Inc................................... 9,000 185,625
Ford Motor Co............................................ 18,400 533,600
Gannett Company, Inc..................................... 5,000 306,875
General Electric Co...................................... 8,000 576,000
General RE Corp.......................................... 1,800 279,000
Great Lakes Chemical Corp................................ 5,000 360,000
Heinz (H.J.) Co.......................................... 15,000 496,875
Hewlett-Packard Co....................................... 8,200 686,750
Johnson & Johnson........................................ 7,900 676,438
Kimberly-Clark Corp...................................... 4,500 372,375
Lilly (Eli) & Co......................................... 10,800 607,500
Lockheed Martin Corp..................................... 8,116 641,164
</TABLE>
9
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
Manor Care, Inc......................................... 11,700 $ 409,500
Marsh & McLennan Companies, Inc......................... 5,000 443,750
McDonald's Corp......................................... 16,000 722,000
Merck & Co., Inc........................................ 12,300 808,725
Minnesota Mining & Manufacturing Co..................... 10,000 662,500
Morgan Stanley Group, Inc............................... 6,700 540,187
Norfolk Southern Corp................................... 3,500 277,813
Penney (J.C.) Co., Inc.................................. 10,700 509,587
PepsiCo, Inc............................................ 11,000 614,625
Philip Morris Cos., Inc................................. 7,500 678,750
Pitney Bowes, Inc....................................... 14,000 658,000
Raytheon Co............................................. 14,000 661,500
Royal Dutch Petroleum Co................................ 6,000 846,750
Russell Corp............................................ 5,100 141,525
SAFECO Corp............................................. 16,000 552,000
Schering-Plough Corp.................................... 12,800 700,800
Schweitzer-Mauduit International, Inc.*................. 450 10,406
Shaw Industries, Inc.................................... 26,000 383,500
Southern New England Telecommunications Corp............ 17,000 675,750
Texas Utilities Co...................................... 11,000 452,375
Textron, Inc............................................ 10,000 675,000
Toys "R" Us, Inc.*...................................... 9,000 195,750
Tyson Foods, Inc., Cl. A................................ 15,000 391,875
Vulcan Materials Co..................................... 6,400 368,800
Wachovia Corp........................................... 10,000 457,500
Westvaco Corp........................................... 18,000 499,500
Whirlpool Corp.......................................... 11,500 612,375
WMX Technologies, Inc................................... 18,300 546,713
------------
31,286,322
------------
SMALL CAPITALIZATION EQUITIES 19.31%
Acuson Corp.*........................................... 5,300 65,588
ACX Technologies, Inc.*................................. 10,200 154,275
Advanced Technology Laboratories, Inc................... 8,300 203,350
AGCO Corp............................................... 4,050 206,550
Airborne Freight Corp................................... 1,400 37,275
Alaska Air Group, Inc.*................................. 9,200 149,500
Albank Financial Corp................................... 13,200 396,000
Alberto-Culver Co., Cl. B............................... 4,900 168,437
Alex. Brown, Inc........................................ 700 29,400
Alexander's, Inc.*...................................... 300 20,850
Alpharma, Inc., Cl. A................................... 4,000 104,500
American Annuity Group, Inc............................. 10,600 125,875
American Bankers Insurance Group, Inc................... 3,200 124,800
AMSCO International, Inc.*.............................. 16,200 240,975
Ann Taylor Stores Corp.*................................ 400 4,100
Apple South, Inc........................................ 2,850 61,275
Applebee's International, Inc........................... 1,000 22,750
Aptargroup, Inc......................................... 3,500 130,813
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
Arctco, Inc............................................. 800 $ 10,400
Arrow Electronics, Inc.................................. 262 11,299
Astoria Financial Group Corp.*.......................... 3,000 136,875
Augat, Inc.............................................. 1,900 32,537
Autocam Corp.*.......................................... 882 12,348
Baldor Electric Co...................................... 3,150 63,394
Banta Corp.............................................. 3,000 132,000
Bergen Brunswig Corp., Cl. A............................ 4,800 119,400
Berkley (W.R.) Corp..................................... 2,300 123,625
Berry Petroleum Co., Cl. A.............................. 6,400 64,800
BHC Financial, Inc...................................... 11,600 208,800
Bio-Rad Laboratories, Inc., Cl. A*...................... 8,000 340,000
Borg-Warner Automotive, Inc............................. 1,000 32,000
California Bancshares, Inc.............................. 10,900 289,531
California Federal Bank*................................ 9,700 152,775
Camco International, Inc................................ 7,700 215,600
Canandaigua Wine Co., Inc., Cl. A*...................... 6,100 199,012
Carlisle Cos., Inc...................................... 2,700 109,013
Carpenter Technology Corp............................... 5,600 230,300
Casey's General Stores, Inc............................. 600 13,125
Castle Energy Corp...................................... 2,000 17,844
CCB Financial Corp...................................... 2,500 138,750
Cellular Communications, Inc., Cl. A*................... 7,800 388,050
Central Maine Power Co.................................. 16,000 230,000
Central Newspapers, Inc., Cl. A......................... 6,400 200,800
Centura Banks, Inc...................................... 3,200 112,400
Chefs International, Inc.*.............................. 400 112
Chesapeake Corp......................................... 5,100 151,088
Chesapeake Energy Corp.*................................ 750 24,938
Chittenden Corp.*....................................... 4,400 140,800
Chris-Craft Industries, Inc.*........................... 2,884 124,733
CILCORP, Inc............................................ 1,700 72,037
Citizens Corp........................................... 6,800 126,650
Clear Channel Communications, Inc.*..................... 2,200 97,075
Cleveland-Cliffs, Inc................................... 8,600 352,600
Cognex Corp.*........................................... 9,600 333,600
Colonial Data Technologies Corp.*....................... 13,700 280,850
Comair Holdings, Inc.................................... 5,600 150,500
Commerce Bancorp, Inc................................... 800 17,700
Commerce Group, Inc..................................... 2,300 47,438
Commonwealth Energy Systems............................. 5,200 232,700
CompUSA, Inc.*.......................................... 7,500 233,438
Conner Peripherals, Inc.*............................... 4,400 92,400
Consolidated Stores Corp.*.............................. 11,500 250,125
COR Therapeutics, Inc.*................................. 21,200 177,550
Corvel Corp.*........................................... 700 26,688
CPI Corp................................................ 10,000 160,000
Credence Systems Corp.*................................. 7,200 164,700
Cullen/Frost Bankers, Inc............................... 2,000 100,000
Cytec Industries, Inc.*................................. 400 24,950
Dallas Semiconductor Corp............................... 23,200 481,400
</TABLE>
10
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
Davidson & Associates, Inc.*............................ 800 $ 17,600
Deposit Guaranty Corp................................... 2,400 106,800
Devon Group, Inc........................................ 3,700 107,531
Dime Bancorp, Inc....................................... 5,200 60,450
E. W. Blanch Holdings, Inc.............................. 3,800 88,825
Electroglas, Inc.*...................................... 6,800 166,600
Fibreboard Corp......................................... 5,000 111,875
FINOVA Group, Inc....................................... 5,400 260,550
First Commercial Corp................................... 5,564 183,612
First Financial Corp. Wisc.............................. 4,900 112,700
First Michigan Bank Corp................................ 9,450 262,238
First Midwest Bancorp, Inc.............................. 2,000 57,750
Fremont General Corp.................................... 4,620 169,785
G & K Services, Inc., Cl. A............................. 1,050 26,775
Giant Industries, Inc.*................................. 900 11,025
Gibson Greetings, Inc................................... 1,400 22,400
Global Marine, Inc.*.................................... 16,000 140,000
GoodMark Foods, Inc..................................... 3,400 60,350
Grey Advertising, Inc................................... 200 40,000
Gymboree Corp.*......................................... 1,000 20,625
Harman International Industries, Inc.................... 2,205 88,475
Harnischfeger Industries, Inc........................... 7,100 236,075
Haverty Furniture Cos., Inc............................. 100 1,388
Helene Curtis Industries, Inc........................... 2,500 79,062
Heritage Media Corp., Cl. A*............................ 16,800 430,500
Hondo Oil & Gas Co.*.................................... 3,000 41,625
Horace Mann Educators Corp.............................. 3,700 115,625
Horizon Healthcare Corp.*............................... 1,100 27,775
IDEX Corp.*............................................. 1,350 55,350
IES Industries, Inc..................................... 8,800 233,200
Illinois Central Corp................................... 7,000 268,625
Imperial Credit Industries, Inc......................... 3,900 84,825
Infinity Broadcasting Corp., Cl. A*..................... 2,850 106,163
Input/Output, Inc.*..................................... 1,000 57,750
Insurance Auto Auctions, Inc.*.......................... 1,000 10,750
Inter Regional Financial Group, Inc.*................... 14,550 367,388
International Multifoods Corp........................... 11,600 233,450
Interstate Power Co..................................... 9,300 309,225
InterVoice, Inc.*....................................... 6,800 129,200
Invacare Corp........................................... 2,600 65,650
J & L Specialty Steel, Inc.............................. 10,900 204,375
Just For Feet, Inc.*.................................... 10,400 371,800
K N Energy, Inc......................................... 3,000 87,375
KEMET Corp.*............................................ 4,000 95,500
Kennametal, Inc......................................... 3,500 111,125
Kent Electronics Corp.*................................. 2,400 140,100
Kinetic Concepts, Inc................................... 8,100 97,200
Landstar System, Inc.*.................................. 5,500 147,125
La-Z Boy Chair Co....................................... 500 15,438
LCI International, Inc.*................................ 7,200 147,600
Lennar Corp............................................. 15,100 379,388
Lincare Holdings, Inc.*................................. 4,700 117,500
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
Liposome Company, Inc.*................................. 100 $ 2,000
Logicon, Inc............................................ 3,600 99,000
Louis Dreyfus Natural Gas Corp.*........................ 400 6,050
Luby's Cafeterias, Inc.................................. 13,500 300,375
Lukens, Inc............................................. 7,100 204,125
Lydall, Inc.*........................................... 14,600 332,150
Magna Group, Inc........................................ 12,200 289,750
Mark Twain Bancshares, Inc.............................. 2,800 108,500
Measurex Corp........................................... 15,200 429,400
Media General, Inc., Cl.A............................... 3,300 100,237
Meredith Corp........................................... 19,400 812,375
Meyer (Fred), Inc.*..................................... 100 2,250
Mine Safety Appliances Co............................... 2,700 129,600
Minnesota Power & Light Co.............................. 8,300 235,513
Multicare Companies*.................................... 5,700 136,800
Mutual Risk Management Ltd.............................. 700 32,025
NAC Re Corp............................................. 6,600 237,600
Nautica Enterprises, Inc.*.............................. 5,050 220,937
Nellcor, Inc.*.......................................... 2,100 121,800
NovaCare, Inc.*......................................... 400 2,050
Oakwood Homes Corp...................................... 11,000 422,125
OEA, Inc................................................ 12,100 361,487
Oneok, Inc.............................................. 10,200 233,325
OrNda Healthcorp........................................ 1,100 25,575
Outboard Marine Corp.................................... 4,800 97,800
People's Bank of Bridgeport, Connecticut................ 12,200 231,800
Photronics, Inc.*....................................... 2,850 76,237
Physicians Health Svc., Inc., Cl. A*.................... 100 3,700
Picturetel Corp.*....................................... 7,600 327,750
Pioneer Group, Inc...................................... 600 16,350
Pioneer Standard Electronics, Inc....................... 6,975 92,418
Players International, Inc.*............................ 3,800 40,613
Pope & Talbot, Inc...................................... 600 7,950
Precision Castparts Corp................................ 12,150 482,963
Prime Hospitality Corp.*................................ 1,800 18,000
Project Software & Development, Inc.*................... 3,900 136,012
Protective Life Corp.................................... 17,600 550,000
Quick and Reilly Group, Inc............................. 6,450 132,225
Quintiles Transnational Corp.*.......................... 4,200 172,200
Regal Beloit Corp....................................... 17,700 384,975
Regeneron Pharmaceuticals, Inc.*........................ 10,000 127,500
Reinsurance Group of America............................ 1,800 65,925
Reliance Group Holdings, Inc............................ 1,300 11,213
Rex Stores Corp.*....................................... 800 14,200
Riggs National Corp.*................................... 30,700 399,100
Robert Half International, Inc.*........................ 7,500 314,063
Rock-Tenn. Co., Cl. A................................... 200 3,250
Sanifill, Inc.*......................................... 8,600 287,025
SCI Systems, Inc.*...................................... 15,400 477,400
SEI Corp................................................ 6,600 143,550
Selective Insurance Group............................... 4,200 149,100
Sequent Computer Systems, Inc.*......................... 3,500 50,750
Sierra On-Line, Inc.*................................... 2,700 77,625
Silicon Valley Group, Inc.*............................. 2,200 55,550
</TABLE>
11
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
Smith International, Inc.*.............................. 15,000 $ 352,500
Smith's Food & Drug Centers, Inc., Cl. B................ 11,100 280,275
Smithfield Foods, Inc.*................................. 600 19,050
Sonat Offshore Drilling Co.............................. 14,900 666,775
Southwest Gas Corp...................................... 1,900 33,488
Springs Industries, Inc., Cl. A......................... 7,400 306,175
St. Paul Bancorp, Inc................................... 3,800 96,900
State Auto Financial Corp............................... 6,300 163,800
Sterling Software, Inc.*................................ 2,300 143,462
Strawbridge & Clothier, Cl. A........................... 6,300 151,200
SunGard Data Systems, Inc.*............................. 7,200 205,200
Sunrise Medical, Inc.*.................................. 2,800 51,800
Surgical Care Affiliates, Inc........................... 2,800 95,200
Sybase, Inc.*........................................... 640 23,040
Symbol Technologies, Inc.*.............................. 4,000 158,000
Synopsys, Inc.*......................................... 10,100 383,800
TCF Financial Corp...................................... 3,200 106,000
Tetra Tech, Inc.*....................................... 4,375 99,531
Tiffany & Co............................................ 3,100 156,163
Toro Co................................................. 7,000 230,125
Tredegar Industries, Inc................................ 21,400 695,500
True North Communications, Inc.......................... 3,400 62,900
Union Corp.............................................. 2,000 37,000
Universal Health Services, Inc., Cl. B*................. 3,800 168,625
Vencor, Inc.*........................................... 11,033 358,572
Vesta Insurance Group, Inc.............................. 3,900 212,550
Vicor Corp.*............................................ 500 10,000
Vigoro Corp............................................. 3,200 197,600
Vivra, Inc.*............................................ 2,700 67,837
Waban, Inc.*............................................ 7,400 138,750
Washington National Corp................................ 3,400 93,925
Watson Pharmaceuticals, Inc.*........................... 4,500 220,500
Watts Industries, Inc., Cl. A........................... 4,600 106,950
West Co., Inc........................................... 3,400 79,900
West America Bancorp.................................... 2,800 121,100
Westpoint Stevens, Inc.*................................ 6,600 132,412
Wisconsin Central Transportation Corp.*................. 2,200 144,650
Wolverine Tube , Inc.*.................................. 5,200 195,000
Wonderware Corp.*....................................... 4,700 80,487
Wyle Electronics........................................ 6,500 228,312
Zeigler Coal Holding Co................................. 14,100 195,637
Zilog, Inc.*............................................ 4,400 161,150
------------
33,803,315
------------
INTERNATIONAL EQUITIES 20.13%
ABN-AMRO Hldgs N.V., ADR................................ 7,700 $ 351,138
AEGON N.V., Sponsored ADR............................... 30,000 1,320,000
AKZO N.V., ADR.......................................... 11,400 661,200
Amcor Ltd., Sponsored ADR............................... 20,000 570,000
Associated British Foods PLC, ADR....................... 80,000 458,320
Banco Santander SA, Sponsored ADR....................... 20,900 1,029,325
BASF AG, ADR............................................ 8,000 357,163
Bass PLC, Sponsored ADR................................. 18,300 407,175
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Bayer AG, ADR............................................ 27,400 $ 724,590
British Airways PLC, Sponsored ADR....................... 8,000 582,000
British Telecommunications PLC, Sponsored ADR............ 10,000 565,000
Carlton Communications PLC, Sponsored ADR................ 15,000 455,625
Ciba-Geigy AG, Sponsored ADR............................. 33,500 1,477,534
Compagnie Cervecerias, ADR............................... 14,000 325,500
CS Holding ADR........................................... 15,000 385,378
Elsevier N.V., Sponsored ADR............................. 20,000 532,500
Empresa Nacional de Electridad SA, ADR................... 9,100 520,975
Fuji Photo Film Co., Ltd., ADR........................... 22,000 1,278,750
Gambro AB, Sponsored ADR................................. 60,100 1,156,925
Glaxo Wellcome PLC, Sponsored ADR........................ 16,000 452,000
Groupe Danone, Sponsored ADR............................. 18,000 594,799
Heineken N.V., ADR....................................... 2,000 355,211
Hitachi Ltd., Sponsored ADR.............................. 6,000 603,000
Hong Kong Electric, ADR.................................. 200,000 655,720
HSBC Holdings PLC, Sponsored ADR......................... 5,000 756,603
Inchcape Berhad, ADR..................................... 282,200 905,862
Kirin Brewery Co., Ltd., ADR............................. 5,700 681,150
Konica Corp., ADR........................................ 12,000 874,800
Koninklijke Ahold N.V., Sponsored ADR.................... 27,300 1,122,713
LVMH (Moet-Hennessy Louis Vuitton), Sponsored ADR........ 15,000 628,125
Marui Ltd., ADR.......................................... 15,600 653,640
Matsushita Electric Industrial Co. Ltd., ADR............. 4,000 658,000
Mayne Nickless Ltd., ADR................................. 15,000 334,740
National Australia Bank, Ltd., Sponsored ADR............. 25,000 1,131,250
Nestle SA , Sponsored ADR................................ 17,400 964,776
Novo-Nordisk A/S, Sponsored ADR.......................... 27,300 928,200
Petrofina SA, ADR........................................ 13,500 413,315
PowerGen PLC, Sponsored ADR.............................. 15,000 510,000
Repsol SA, Sponsored ADR................................. 20,000 657,500
RWE Aktiengesellschaf, Sponsored ADR..................... 27,000 980,943
Sekisui House Ltd., ADR.................................. 6,600 849,024
Shell Transport & Trading Co. ADR........................ 10,100 821,887
South China Morning Post., ADR........................... 150,000 458,325
Southern Electric PLC, Sponsored ADR..................... 9,000 252,639
TDK Corp., ADR........................................... 12,100 635,250
Telefonica de Espana, Sponsored ADR...................... 15,000 628,125
Telefonos de Mexico, "L", Sponsored ADR.................. 6,000 191,250
Total, ADR............................................... 30,000 1,020,000
Toyota Motor Corp., ADR.................................. 18,100 764,725
Unigate PLC, ADR......................................... 100,000 638,110
Unilever N.V., NY Shs.................................... 6,700 943,025
Vitro Sociedad Anonima, ADR.............................. 1,160 5,510
------------
35,229,315
------------
</TABLE>
12
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
REAL ESTATE EQUITIES 23.47%
Agree Realty Corp....................................... 19,000 $ 277,875
Bay Apartment Communities, Inc.......................... 62,500 1,515,625
Beacon Properties, Inc.................................. 59,400 1,366,200
Cali Realty Corp........................................ 35,500 776,563
CBL & Associates Properties, Inc........................ 62,400 1,357,200
CenterPoint Properties Corp............................. 44,500 1,029,062
Chelsea GCA Realty, Inc................................. 13,500 405,000
Colonial Properties Trust............................... 29,600 754,800
Crown American Realty Trust............................. 138,000 1,086,750
Duke Realty Investments, Inc............................ 62,300 1,954,662
Equity Residential Properties Trust-SBI................. 41,200 1,261,750
Excel Realty Trust, Inc................................. 29,000 594,500
FelCor Suite Hotels, Inc................................ 42,600 1,182,150
Gables Residential Trust-SBI............................ 83,400 1,907,775
General Growth Properties, Inc.......................... 28,100 583,075
Glimcher Realty Trust-SBI............................... 49,900 860,775
HGI Realty, Inc......................................... 40,320 922,320
Highwoods Properties, Inc............................... 43,900 1,240,175
JDN Realty Corp......................................... 50,000 1,118,750
Kimco Realty Corp....................................... 19,950 543,638
Koger Equity, Inc.*..................................... 107,300 1,140,062
Liberty Property Trust-SBI.............................. 74,900 1,554,175
Meditrust Inc.- SBI..................................... 27,100 945,112
Merry Land & Investment Co., Inc........................ 49,000 1,157,625
MGI Properties.......................................... 67,500 1,130,625
Nationwide Health Properties, Inc....................... 25,400 1,066,800
Oasis Residential, Inc.................................. 43,000 978,250
Patriot American Hospitality, Inc....................... 49,800 1,282,350
Price REIT, Inc......................................... 13,000 360,750
Public Storage, Inc..................................... 100,500 1,909,500
Regency Realty Corp..................................... 40,800 703,800
ROC Communities, Inc.................................... 18,400 441,600
Shurgard Storage Centers, Inc........................... 36,800 993,600
Simon Property Group, Inc............................... 7,200 175,500
Sizeler Property Investors, Inc......................... 48,800 433,100
South West Property Trust............................... 78,100 1,054,350
Starwood Lodging Trust.................................. 46,500 1,383,375
Summit Properties, Inc.................................. 33,600 667,800
Sun Communities, Inc.................................... 27,100 714,763
Tucker Properties Corp.................................. 65,000 568,750
Wellsford Residential Property Trust.................... 72,700 1,672,100
------------
41,072,632
------------
TOTAL COMMON STOCKS
(Cost $119,661,751).................................... 141,391,584
------------
FIXED INCOME SECURITIES 14.71%
U.S. GOVERNMENT OBLIGATIONS 7.43%
U.S. TREASURY NOTES
5.625%, 06/30/1997..................................... 2,670,000 2,687,521
8.000%, 05/15/2001..................................... 900,000 1,007,718
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
7.500%, 11/15/2001.................................... 475,000 $ 523,539
6.250%, 02/15/2003.................................... 2,850,000 2,974,688
7.875%, 11/15/2004.................................... 1,650,000 1,910,906
8.750%, 05/15/2017.................................... 2,950,000 3,902,295
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $12,157,199).................................... 13,006,667
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 3.20%
Federal Home Loan Mortgage Corp., Pool #380070 9.000%,
01/01/2005............................................ 466,517 483,866
Federal Home Loan Mortgage Corp.,
93-31 LC 7.000%, 08/25/2016........................... 700,000 713,167
Federal Home Loan Mortgage Corp., Pool #A00902 8.500%,
06/01/2017............................................ 669,045 698,107
Federal Home Loan Mortgage Corp., Pool #554938 8.000%,
08/01/2017............................................ 474,342 488,276
Federal Home Loan Mortgage Corp., PO, Strip Series 1686
B* 0.000%, 02/15/2024................................. 560,149 333,289
FHA/VA Pool #140283 6.500%, 08/15/2003................. 600,997 599,182
Federal National Mortgage Assn., Pool #190688 6.000%,
03/01/2009............................................ 714,884 707,735
Federal National Mortgage Assn. Pool #190723 6.000%,
04/01/2024............................................ 1,629,380 1,575,406
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,289,359)..................................... 5,599,028
------------
MORTGAGE SECURITIES 0.29%
The Money Store Home Equity Trust 7.100%, 11/15/2016,
1994-B
Series A-3............................................ 500,000 512,105
------------
TOTAL MORTGAGE SECURITIES (Cost $498,096).............. 512,105
------------
CORPORATE BONDS 3.79%
Associates Corp. North America,
8.800%, 03/01/1996.................................... 849,000 853,259
Bear Stearns Co., 5.875%, 01/15/1996................... 800,000 800,023
Dean Witter Discover & Co.,
5.000%, 04/01/1996.................................... 500,000 499,307
GTE Corp., 10.250%, 11/01/2020......................... 620,000 750,679
International Lease Finance Corp.,
6.625%, 06/01/1996.................................... 550,000 552,158
Norwest Corp., FRN, 5.928%, 02/24/1999................. 675,000 674,458
Province of Manitoba, 7.750%, 07/17/2016............... 480,000 540,475
</TABLE>
13
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
INVESCO MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
Transamerica Finance Corp.,
8.550%, 06/15/1996...................................... 585,000 $ 592,933
US West Capital Funding Corp.,
6.310%, 11/01/2005...................................... 750,000 762,672
WMX Technologies, Inc.,
6.220%, 04/30/2004...................................... 550,000 605,120
------------
TOTAL CORPORATE BONDS
(Cost $6,468,128)....................................... 6,631,084
------------
TOTAL FIXED INCOME SECURITIES
(Cost $24,412,782)...................................... 25,748,884
------------
SHORT TERM INVESTMENTS 4.51%
United Missouri Bank, Money Market Fiduciary 4.680% ..... 7,894,761 7,894,761
------------
TOTAL INVESTMENTS
(100.00%) (Cost $151,969,294)............................ $175,035,229
============
*Security is non-income producing.
INVESCO ADVISOR INTERNATIONAL VALUE FUND
- ----------------------------------------
COMMON STOCKS 87.95%
BASIC MATERIALS 2.21%
BASF AG, ADR............................................. 5,000 223,227
------------
CONSUMER CYCLICAL 8.31%
Canon, Inc., Sponsored ADR............................... 3,000 274,125
Elsevier N.V., Sponsored ADR............................. 7,000 186,375
Marui Ltd., ADR.......................................... 4,000 167,600
Toyota Motor Corp, ADR................................... 5,000 211,250
------------
839,350
------------
CONSUMER STAPLES 22.86%
Amcor Ltd., Sponsored ADR................................ 6,500 185,250
Associated British Foods PLC, ADR........................ 32,000 183,328
Bass PLC, Sponsored ADR.................................. 9,000 200,250
Dai Nippon Printing Co. Ltd., ADR........................ 1,200 204,660
Gambro AB, Sponsored ADR................................. 10,000 192,500
Glaxo Wellcome PLC, Sponsored ADR........................ 6,000 169,500
Groupe Danone, Sponsored ADR............................. 5,000 165,222
Heineken N.V., ADR....................................... 500 88,803
Kirin Brewery Co., Ltd., ADR............................. 2,000 239,000
Koninklijke Ahold N.V., Sponsored ADR.................... 5,000 205,625
LVMH (Moet-Hennessy Louis Vuitton), Sponsored ADR........ 4,000 167,500
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Nestle SA, Sponsored ADR................................. 3,000 $ 166,341
Unilever N.V., NY Shs.................................... 1,000 140,750
------------
2,308,729
------------
DIVERSIFIED 9.52%
Bayer AG, ADR............................................ 6,000 158,669
Elf Aquitaine, Sponsored ADR............................. 6,000 220,500
Novo-Nordisk A/S, Sponsored ADR.......................... 6,000 204,000
RWE Aktiengesellschaf AG, Sponsored ADR.................. 4,000 145,325
Swire Pacific Ltd., ADR.................................. 30,000 232,800
------------
961,294
------------
ENERGY 4.75%
Repsol SA, Sponsored ADR................................. 6,000 197,250
Royal Dutch Petroleum Co., NY Shs........................ 2,000 282,250
------------
479,500
------------
ELECTRONICS 6.92%
Carlton Communications PLC, Sponsored ADR................ 5,000 151,875
Fuji Photo Film Co., Ltd., ADR........................... 4,000 232,500
Hitachi Ltd., Sponsored ADR.............................. 1,300 130,650
TDK Corp, ADR............................................ 3,500 183,750
------------
698,775
------------
FINANCE 12.37%
AEGON N.V., Sponsored ADR................................ 3,000 132,000
Banco Santander SA, Sponsored ADR........................ 2,000 98,500
Den Danske Bank, ADR..................................... 2,000 138,222
HSBC Holdings PLC, Sponsored ADR......................... 1,500 226,981
International Nederlanden Groep N.V., Sponsored ADR...... 3,500 234,063
National Australia Bank, Ltd., Sponsored ADR............. 6,000 271,500
Societe Generale Paris, ADR.............................. 6,000 148,454
------------
1,249,720
------------
PHARMACEUTICALS 8.61%
Astra AB, Sponsored ADR.................................. 5,000 199,933
Ciba-Geigy AG, Sponsored ADR............................. 6,000 264,633
Sandoz AG, Sponsored ADR................................. 4,000 183,548
SmithKline Beecham PLC, ADR.............................. 4,000 222,000
------------
870,114
------------
REAL ESTATE & HOUSING 2.89%
Sekisui House Ltd., ADR.................................. 1,000 128,640
Sun Hung Kai Properties Ltd., ADR........................ 20,000 163,606
------------
292,246
------------
</TABLE>
14
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO INTERNATIONAL VALUE FUND (CONTINUED)
<S> <C> <C>
TELECOMMUNICATIONS 4.71%
British Telecommunications PLC, Sponsored ADR........... 2,000 $ 113,000
Stet Societa Finanziaria Telefonica SpA, Sponsor........ 7,000 195,125
Telefonica de Espana, Sponsored ADR..................... 4,000 167,500
------------
475,625
------------
TRANSPORTATION & SERVICES 1.80%
British Airways PLC, Sponsored ADR...................... 2,500 181,875
------------
UTILITIES 3.00%
Empresa Nacional de Electridad SA, ADR.................. 3,500 200,375
PowerGen PLC, Sponsored ADR............................. 3,000 102,000
------------
302,375
------------
TOTAL COMMON STOCKS
(Cost $8,364,282)...................................... 8,882,830
------------
SHORT TERM INVESTMENTS 12.05%
United Missouri Bank, Money Market Fiduciary, 4.680%.... 1,217,248 1,217,248
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,217,248)...................................... 1,217,248
------------
TOTAL INVESTMENTS
(100.00%) (Cost $9,581,530)............................ $ 10,100,078
============
</TABLE>
*Security is non-income producing.
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
% OF MARKET
COUNTRY INVESTMENTS VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia............................................... 4.52% $ 456,750
Great Britain........................................... 15.35% 1,550,809
Denmark................................................. 2.02% 204,000
France.................................................. 6.95% 701,676
Germany................................................. 5.22% 527,221
Hong Kong............................................... 2.30% 232,800
Italy................................................... 1.93% 195,125
Japan................................................... 19.17% 1,935,781
Netherlands............................................. 13.94% 1,408,088
Spain................................................... 6.57% 663,625
Sweden.................................................. 3.89% 392,433
Switzerland............................................. 6.09% 614,522
United States........................................... 12.05% 1,217,248
------ -----------
TOTAL................................................... 100.00% $10,100,078
====== ===========
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR REAL ESTATE FUND
- --------------------------------
COMMON STOCKS 92.84%
DIVERSIFIED 6.08%
Colonial Properties Trust............................... 4,500 $ 114,750
MGI Properties.......................................... 8,500 142,375
Sizeler Property Investors, Inc......................... 8,050 71,444
------------
328,569
------------
HEALTHCARE 2.89%
Health Care Property Investment, Inc.................... 800 28,100
Meditrust, Inc.-SBI..................................... 1,500 52,312
Nationwide Health Properties, Inc....................... 1,800 75,600
------------
156,012
------------
INDUSTRIAL 10.95%
CenterPoint Properties Corp............................. 4,400 101,750
Duke Realty Investments, Inc............................ 8,650 271,394
Liberty Property Trust-SBI.............................. 10,550 218,912
------------
592,056
------------
OFFICE 9.62%
Beacon Properties, Inc.................................. 8,250 189,750
Cali Realty Corp........................................ 5,200 113,750
Highwoods Properties, Inc. ............................. 4,250 120,063
Koger Equity, Inc.*..................................... 5,300 56,312
Spieker Properties, Inc................................. 1,600 40,200
------------
520,075
------------
RECREATION 8.91%
FelCor Suite Hotels, Inc................................ 5,300 147,075
Patriot American Hospitality, Inc....................... 7,100 182,825
Starwood Lodging Trust.................................. 5,100 151,725
------------
481,625
------------
RESIDENTIAL 26.35%
Bay Apartment Communities, Inc.......................... 8,700 210,975
Equity Residential Properties Trust-SBI................. 5,900 180,688
Gables Residential Trust-SBI............................ 11,150 255,056
Merry Land & Investment Co., Inc........................ 1,600 37,800
Oasis Residential, Inc.................................. 6,000 136,500
ROC Communities, Inc.................................... 1,700 40,800
South West Property Trust............................... 11,200 151,200
Summit Properties, Inc.................................. 4,500 89,438
Sun Communities, Inc.................................... 3,900 102,862
Wellsford Residential Property Trust.................... 9,500 218,500
------------
1,423,819
------------
RETAIL 21.55%
CBL & Associates Properties, Inc........................ 8,150 177,263
Chelsea GCA Realty, Inc................................. 2,100 63,000
</TABLE>
15
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
INVESCO ADVISOR REAL ESTATE FUND (CONTINUED)
<S> <C> <C>
Crown American Realty Trust.............................. 18,900 $ 148,837
Excel Realty Trust, Inc.................................. 700 14,350
General Growth Properties, Inc........................... 3,850 79,887
Glimcher Realty Trust-SBI................................ 7,300 125,925
HGI Realty, Inc.......................................... 5,800 132,675
JDN Realty Corp.......................................... 6,400 143,200
Kimco Realty Corp........................................ 1,350 36,788
Price REIT, Inc.......................................... 2,500 69,375
Regency Realty Corp...................................... 6,600 113,850
Simon Property Group, Inc................................ 700 17,063
Tucker Properties Corp................................... 4,850 42,438
------------
1,164,651
------------
SELF-STORAGE 6.49%
Public Storage, Inc...................................... 13,000 247,000
Shurgard Storage Centers, Inc............................ 3,850 103,950
------------
350,950
------------
TOTAL COMMON STOCKS
(Cost $4,796,793)....................................... 5,017,757
------------
SHORT TERM INVESTMENTS 7.16%
U.S. Treasury Bills, 5.325%, 01/18/1996.................. 125,000 124,704
U.S. Treasury Bills, 5.250%, 01/18/1996.................. 200,000 199,533
United Missouri Bank, Money Market Fiduciary 4.680%...... 62,751 62,751
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $386,988)......................................... 386,988
------------
TOTAL INVESTMENTS
(100.00%) (Cost $5,183,781)............................. $ 5,404,745
============
*Security is non-income producing.
INVESCO ADVISOR INCOME FUND
- ---------------------------
FIXED INCOME SECURITIES 99.28%
U.S. GOVERNMENT OBLIGATIONS 79.21%
U.S. Treasury Notes
6.000%, 06/30/1996...................................... 40,000 40,150
5.625%, 06/30/1997...................................... 220,000 221,444
8.500%, 07/15/1997...................................... 2,000,000 2,096,250
6.000%, 12/31/1997...................................... 150,000 152,344
6.500%, 04/30/1999...................................... 115,000 119,205
8.000%, 08/15/1999...................................... 1,000,000 1,087,813
6.375%, 01/15/2000...................................... 1,200,000 1,244,624
8.000%, 05/15/2001...................................... 75,000 83,976
7.500%, 11/15/2001...................................... 1,750,000 1,928,827
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
6.375%, 08/15/2002..................................... 100,000 $ 105,063
6.250%, 02/15/2003..................................... 2,290,000 2,390,188
10.750%, 08/15/2005.................................... 1,250,000 1,719,140
9.375%, 02/15/2006..................................... 1,000,000 1,286,562
9.250%, 02/15/2016..................................... 3,000,000 4,125,936
8.750%, 05/15/2017..................................... 435,000 575,423
8.125%, 08/15/2019..................................... 2,500,000 3,143,750
7.875%, 02/15/2021..................................... 140,000 172,331
7.250%, 08/15/2022..................................... 2,800,000 3,241,876
------------
23,734,902
------------
U.S. TREASURY STRIPS PO*
0.000%, 08/15/2014..................................... 4,000,000 1,280,960
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $22,314,567)..................................... 25,015,862
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 9.40%
FEDERAL HOME LOAN MORTGAGE CORP. 12.000%, 04/01/2000.... 10,322 10,977
------------
FEDERAL NATIONAL MORTGAGE ASSN.
6.000%, 01/01/2009 Pool #50973......................... 81,228 80,416
6.000%, 04/01/2024 Pool #190723........................ 96,987 93,774
------------
174,190
------------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668........................ 925,730 934,409
6.000%, 10/15/2008 Pool #360191........................ 541,489 537,766
7.000%, 10/15/2008 Pool #366622........................ 882,594 902,729
6.000%, 11/15/2008 Pool #370907........................ 411,045 408,218
------------
2,783,122
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $3,017,559)...................................... 2,968,289
------------
CORPORATE BONDS 10.67%
FINANCE 5.25%
Dean Witter Discover & Co.,
5.000%, 04/01/1996..................................... 50,000 49,931
Associates Corp., North America,
8.375%, 06/01/1996..................................... 40,000 40,453
International Lease Finance Corp.,
6.625%, 06/01/1996..................................... 40,000 40,157
Associates Corp., North America,
4.750%, 08/01/1996..................................... 1,000,000 995,942
National City Corp, 7.200%, 05/15/2005.................. 500,000 532,631
------------
1,659,114
------------
</TABLE>
16
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
INVESCO ADVISOR INCOME FUND (CONTINUED)
<S> <C> <C>
INDUSTRIAL 5.42%
Waste Management, Inc.,
6.375%, 07/01/1997..................................... 500,000 $ 506,006
Ford Motor Credit Co.,
9.250%, 06/15/1998..................................... $35,000 37,859
Ford Motor Credit Co.,
7.500%, 11/15/1999..................................... 500,000 528,138
Rockwell International, Inc.,
6.625%, 06/01/2005..................................... 500,000 519,499
GTE Corp., 10.250%, 11/01/2030.......................... 100,000 121,077
------------
1,712,579
------------
TOTAL CORPORATE BONDS
(Cost $3,327,120)...................................... 3,371,693
------------
TOTAL FIXED INCOME SECURITIES (Cost $28,659,246)........ 31,355,844
------------
SHORT TERM INVESTMENTS 0.72%
United Missouri Bank, Money Market Fiduciary 4.680%
(Cost $226,035)........................................ 226,035 226,035
------------
TOTAL INVESTMENTS
(100.00%) (Cost $28,885,281)........................... $ 31,581,879
============
</TABLE>
*Security is non-income producing.
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Effective Shares or
Interest Principal
Description Rate % Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESCO ADVISOR CASH MANAGEMENT FUND
- ------------------------------------
SHORT-TERM INVESTMENTS 100.00%
COMMERCIAL PAPER 99.56%
Ford Motor Credit Co. 01/04/1996............... 5.650 900,000 $ 899,576
Abbott Laboratories 01/05/1996................. 5.750 900,000 899,425
Gillette Co. 01/05/1996........................ 5.720 900,000 899,428
MetLife Funding, Inc. 01/05/1996............... 5.720 900,000 899,428
General Electric Capital Corp. 01/08/1996...... 5.740 900,000 898,996
Idaho Power Corp. 01/08/1996................... 5.800 900,000 898,985
Potomac Electric Power Co. 01/09/1996.......... 5.750 900,000 898,850
Weyerhaeuser Mortgage Co. 01/11/1996........... 5.750 800,000 798,722
Coca-Cola Co. 01/12/1996....................... 5.700 900,000 898,433
Pitney Bowes Credit Corp. 01/17/1996........... 5.750 950,000 947,572
Xerox Corp. 01/18/1996......................... 5.750 950,000 947,421
Bell Atlantic Financial Corp. 01/19/1996....... 5.770 950,000 947,259
Southern California Edison Co. 01/19/1996...... 5.700 900,000 897,435
Cargill, Inc. 01/24/1996....................... 5.680 800,000 797,097
Progress Capital Holdings Corp. 01/24/1996..... 5.740 500,000 498,166
Amoco Corp. 01/25/1996......................... 5.550 900,000 896,670
Dupont (E.I.) de Nemours and Co. 01/25/1996.... 5.700 900,000 896,580
AT & T Corp. 01/26/1996........................ 5.710 900,000 896,431
Prudential Funding Corp. 01/29/1996............ 5.500 800,000 796,578
USAA Capital Corp. 01/31/1996.................. 5.660 755,000 751,439
Tampa Electric Co. 02/02/1996.................. 5.670 900,000 895,464
PepsiCo, Inc. 02/05/1996....................... 5.550 800,000 795,683
Golden Peanut Co. 02/14/1996................... 5.650 900,000 893,785
-----------
TOTAL COMMERCIAL PAPER (Cost $19,849,423)...... 19,849,423
-----------
OTHER SECURITIES 0.44%
United Missouri Bank, Money Market Fiduciary
4.680%........................................ 4.680 87,000 87,000
-----------
TOTAL INVESTMENTS (100.00%) (Cost $19,936,423). $19,936,423
===========
</TABLE>
* Security is non-income producing.
See notes to financial statements.
17
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL CASH
FLEX EQUITY MULTIFLEX VALUE REAL ESTATE INCOME MANAGEMENT
FUND FUND FUND FUND FUND FUND FUND
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investment securities:
At cost................ $313,632,122 $ 84,147,075 $151,969,294 $ 9,581,530 $5,183,781 $28,885,281 $19,936,423
==============================================================================================
At value............... $395,308,147 $113,417,855 $175,035,229 $10,100,078 $5,404,745 $31,581,879 $19,936,423
Cash.................... 599 0 0 0 0 310 1,341
Receivables:
Fund shares sold....... 1,892,338 585,665 649,837 158,207 126,487 20,000 567,400
Dividends and interest. 3,146,751 255,155 1,077,425 21,877 58,339 665,549 1,555
Other assets............ 7,929 2,453 3,611 0 0 786 0
----------------------------------------------------------------------------------------------
TOTAL ASSETS............ 400,355,764 114,261,128 176,766,102 10,280,162 5,589,571 32,268,524 20,506,719
----------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Distributions to
shareholders.......... 153 0 0 0 0 0 28,285
Investment securities
purchased............. 0 0 1,008,636 781,090 0 0 0
Fund shares
repurchased........... 427,893 466,064 803,176 14,667 14,508 206,470 21,937
Other.................. 766,040 221,755 362,442 17,722 10,203 76,515 17,727
----------------------------------------------------------------------------------------------
TOTAL LIABILITIES....... 1,194,086 687,819 2,174,254 813,479 24,711 282,985 67,949
----------------------------------------------------------------------------------------------
NET ASSETS.............. $399,161,678 $113,573,309 $174,591,848 $ 9,466,683 $5,564,860 $31,985,539 $20,438,770
==============================================================================================
NET ASSETS
Paid-in capital......... $317,484,251 $ 85,479,483 $151,550,583 $ 8,949,417 $5,343,617 $31,135,493 $20,439,861
Accumulated
undistributed
(overdistributed) net
investment income...... 2,987 2,354 22,560 641 2,810 (22,825) 0
Accumulated net realized
gain (loss) on
investments............ (1,585) (1,179,308) (47,230) (1,923) (2,531) (1,823,727) (1,091)
Unrealized net
appreciation of
investments............ 81,676,025 29,270,780 23,065,935 518,548 220,964 2,696,598 0
----------------------------------------------------------------------------------------------
NET ASSETS.............. $399,161,678 $113,573,309 $174,591,848 $ 9,466,683 $5,564,860 $31,985,539 $20,438,770
==============================================================================================
Shares outstanding...... 6,372,029 1,612,998 3,737,435 212,674 129,354 612,520 20,439,190
NET ASSET VALUE PER
SHARE.................. $62.64 $70.41 $ 46.71 $44.51 $43.02 $52.22 $1.00
==============================================================================================
</TABLE>
See notes to financial statements.
18
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF OPERATIONS
December 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL CASH
FLEX EQUITY MULTIFLEX VALUE REAL ESTATE INCOME MANAGEMENT
FUND FUND FUND FUND/1/ FUND/1/ FUND FUND
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends............... $ 6,217,850 $ 2,504,624 $ 3,744,567 $ 42,874 $ 90,258 $ 0 $ 0
Interest................ 8,305,368 314,944 1,984,512 20,033 12,046 1,922,237 1,010,557
--------------------------------------------------------------------------------------
TOTAL INCOME........... 14,523,218 2,819,568 5,729,079 62,907 102,304 1,922,237 1,010,557
--------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees
(Note 2)............... 2,387,908 725,315 1,424,150 24,906 13,012 195,181 85,504
Distribution fees (Note
2)..................... 3,183,877 967,086 1,424,150 24,906 14,458 241,340 0
Directors fees & ex-
penses (Note 2)........ 87,602 27,371 35,299 0 0 10,367 0
Merger expense (Note 2). 0 0 0 0 0 26,351 0
Operating services fees
(Note 2)............... 1,591,939 483,543 669,660 12,454 7,229 134,846 85,504
--------------------------------------------------------------------------------------
TOTAL EXPENSES......... 7,251,326 2,203,315 3,553,259 62,266 34,699 608,085 171,008
Less: Advisory fee waiv-
er..................... 0 0 0 0 0 (17,720) 0
--------------------------------------------------------------------------------------
NET EXPENSES............ 7,251,326 2,203,315 3,553,259 62,266 34,699 590,365 171,008
--------------------------------------------------------------------------------------
NET INVESTMENT INCOME... 7,271,892 616,253 2,175,820 641 67,605 1,331,872 839,549
--------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENT SECURITIES
Net realized gain (loss)
on investments......... 1,499,336 1,719,762 2,369,562 (1,923) (2,531) 210,848 (211)
Change in unrealized net
appreciation on
investments............ 65,472,709 22,774,563 23,626,272 518,548 220,964 3,759,174 0
--------------------------------------------------------------------------------------
NET GAIN (LOSS) ON IN-
VESTMENTS.............. 66,972,045 24,494,325 25,995,834 516,625 218,433 3,970,022 (211)
--------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $74,243,937 $25,110,578 $28,171,654 $517,266 $286,038 $5,301,894 $ 839,338
======================================================================================
</TABLE>
/1/ For the period May 1, 1995 (commencement of operations) through
December 31, 1995.
See notes to financial statements.
19
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FLEX FUND EQUITY FUND MULTIFLEX FUND
---------------------------- ------------------------- --------------------------
1995 1994 1995 1994 1995 1994
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income... $ 7,271,892 $ 5,889,876 $ 616,253 $ 479,946 $ 2,175,820 $ 1,639,535
Net realized gain (loss)
on investments......... 1,499,336 12,398,071 1,719,762 6,360,957 2,369,562 (1,785,609)
Change in unrealized net
appreciation
(depreciation) on
investments............ 65,472,709 (16,818,380) 22,774,563 (4,712,275) 23,626,272 (625,088)
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM OP-
ERATIONS............... 74,243,937 1,469,567 25,110,578 2,128,628 28,171,654 (771,162)
-----------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income... (7,268,905) (5,854,696) (619,651) (476,139) (2,154,064) (1,638,474)
Net realized gain on in-
vestments.............. (1,500,921) (12,579,717) (2,931,042) (6,484,023) (631,064) 0
-----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS..... (8,769,826) (18,434,413) (3,550,693) (6,960,162) (2,785,128) (1,638,474)
-----------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sale of
shares................. 128,403,068 51,594,730 25,972,895 15,904,991 58,897,010 123,515,314
Reinvestment of distri-
butions................ 7,435,346 15,701,393 2,779,410 5,464,054 2,475,012 1,424,166
-----------------------------------------------------------------------------------
135,838,414 67,296,123 28,752,305 21,369,045 61,372,022 124,939,480
Amount paid for repur-
chase of shares........ (45,998,840) (80,831,906) (14,667,568) (25,267,819) (32,386,988) (14,550,357)
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS........... 89,839,574 (13,535,783) 14,084,737 (3,898,774) 28,985,034 110,389,123
-----------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 155,313,685 (30,500,629) 35,644,622 (8,730,308) 54,371,560 107,979,487
NET ASSETS
Beginning of period..... 243,847,993 274,348,622 77,928,687 86,658,995 120,220,288 12,240,801
-----------------------------------------------------------------------------------
End of period........... $399,161,678 $243,847,993 $113,573,309 $77,928,687 $174,591,848 $120,220,288
===================================================================================
Accumulated
undistributed net
investment income
included in net assets
at end of period....... $ 2,987 $ 36,710 $ 2,354 $ 5,752 $ 22,560 $ 804
- -------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Shares sold............. 2,219,650 964,467 404,616 265,696 1,379,512 3,102,568
Shares issued from rein-
vestment of distribu-
tions.................. 126,030 306,095 40,134 96,921 56,127 36,277
-----------------------------------------------------------------------------------
2,345,680 1,270,562 444,750 362,617 1,435,639 3,138,845
Shares repurchased...... (802,409) (1,507,311) (227,468) (420,707) (770,268) (371,608)
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN CAPITAL SHARES...... 1,543,271 (236,749) 217,282 (58,090) 665,371 2,767,237
==================================================================================
</TABLE>
See notes to financial statements.
20
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
INTERNATIONAL REAL ESTATE
VALUE FUND FUND INCOME FUND CASH MANAGEMENT FUND
-------------- ----------- ------------------------ ------------------------
1995* 1995* 1995 1994 1995 1994
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income... $ 641 $ 67,605 $ 1,331,872 $ 1,638,133 $ 839,549 $ 605,091
Net realized gain (loss)
on investments......... (1,923) (2,531) 210,848 (1,092,593) (211) (192)
Change in unrealized net
appreciation
(depreciation) on
investments............ 518,548 220,964 3,759,174 (1,271,405) 0 0
------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM OP-
ERATIONS............... 517,266 286,038 5,301,894 (725,865) 839,338 604,899
------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income... 0 (64,794) (1,346,768) (1,627,655) (839,549) (605,091)
Net realized gain on in-
vestments.............. 0 0 0 0 0 0
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS..... 0 (64,794) (1,346,768) (1,627,655) (839,549) (605,091)
------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sale of
shares................. 9,018,319 5,311,714 9,346,875 6,797,165 33,538,456 36,063,570
Exchange for Net Assets
of Relative Return Bond
Fund................... 0 0 3,327,189 0 0 0
Reinvestment of distri-
butions................ 0 56,654 1,098,969 1,262,826 522,425 393,345
------------------------------------------------------------------------------
9,018,319 5,368,368 13,773,033 8,059,991 34,060,881 36,456,915
Amount paid for repur-
chase of shares........ (72,902) (28,752) (11,062,245) (23,111,481) (28,833,413) (35,072,549)
------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS........... 8,945,417 5,339,616 2,710,788 (15,051,490) 5,227,468 1,384,366
------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 9,462,683 5,560,860 6,665,914 (17,405,010) 5,227,257 1,384,174
NET ASSETS
Beginning of period..... 4,000 4,000 25,467,014 42,872,024 15,211,513 13,827,339
------------------------------------------------------------------------------
End of period........... $9,466,683 $5,564,860 $32,132,928 $25,467,014 $20,438,770 $15,211,513
==============================================================================
Accumulated
undistributed
(overdistributed) net
investment income
included in net assets
at end of period....... $ 641 $ 2,810 $ (22,825) $ (7,929) $ 0 $ 0
- --------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Shares sold............. 214,356 128,705 188,718 145,083 33,538,456 36,063,570
Shares issued due to
exchange for net assets
of Relative Return Bond
Fund................... 0 0 64,390 0 0 0
Shares issued from rein-
vestment of distribu-
tions.................. 0 1,340 22,453 27,130 522,425 393,345
------------------------------------------------------------------------------
214,356 130,045 275,561 172,213 34,060,881 36,456,915
Shares repurchased...... (1,682) (691) (224,859) (492,542) (28,833,413) (35,072,549)
------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN CAPITAL SHARES...... 212,674 129,354 50,702 (320,329) 5,227,468 1,384,366
==============================================================================
</TABLE>
* For the period from May 1, 1995 (commencement of operations) through
December 31, 1995.
See notes to financial statements.
21
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. The INVESCO
Advisor Funds, Inc. (which has been known as The EBI Funds, Inc., prior to
January 15, 1996 and, hereafter, is referred to as the "Fund") is registered
under the Investment Company Act of 1940 (the "Act") as a diversified, open-
end management investment company. The Fund consists of seven separate
investment portfolios, INVESCO Advisor Equity Fund ("Equity"), INVESCO Advisor
Flex Fund ("Flex"), INVESCO Advisor MultiFlex Fund ("MultiFlex"), INVESCO
Advisor Income Fund ("Income"), INVESCO Advisor Cash Management Fund ("Cash
Management"), INVESCO Advisor Real Estate Fund ("Real Estate") and INVESCO
Advisor International Value Fund ("International Value"). Real Estate and
International Value commenced operations on May 1, 1995. The Relative Return
Bond Fund merged into the Income Fund on December 15, 1995. See NOTE 8.
A 25 for 1 split of Equity, Flex and Income capital shares was effected on
January 2, 1992, which resulted in a corresponding reduction in the net asset
value per share. All per share information presented in the financial state-
ments and financial highlights for Equity, Flex and Income has been restated
to reflect the stock split.
The following significant accounting policies are in conformity with gener-
ally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in the preparation of financial state-
ments. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and as-
sumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
A. SECURITY VALUATION -- Securities held by Cash Management are valued using
the amortized cost method of valuation, which approximates market value. If
such valuation does not reflect a security's fair value, it is valued at
fair value as determined in good faith by the Fund's board of directors.
For Equity, Flex, MultiFlex, Income, Real Estate and the International
Value, securities traded on national securities exchanges are valued at the
last sale price on the exchange where such securities are primarily traded.
Securities traded in the over-the-counter market and listed securities for
which no sale was reported on the valuation date are valued at bid price
(or yield equivalent thereof) 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. If market quotations or pricing service valuations are
not readily available, securities are valued at fair value as determined in
good faith by the Fund's board of directors. Securities which are
considered short-term investments when purchased are stated at amortized
cost (which approximates market value) if maturity of the investment is 60
days or less, or at market value if maturity is greater than 60 days.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on trade date and dividend income is
recorded on ex-dividend date. Interest income is recorded on the accrual
basis. Discounts on debt securities purchased are accreted over the life of
the respective security as adjustments to interest income. Costs used in
determining realized gains and losses on the sale of investment securities
are those of specific securities sold.
C. FEDERAL INCOME TAXES -- Each investment portfolio intends to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, distributes net investment income
and net realized capital gains, if any, to relieve it from federal income
taxes. At December 31, 1995, International Value had net capital loss
carryforwards aggregating $860. These carryforwards expire in 2003. At
December 31, 1995, Real Estate had net capital loss carryforwards of
$2,531. These carryforwards expire in 2003. At December 31, 1995, Income
had net capital loss carryforwards aggregating $1,823,727 of which $29,229
was received from the merger with Relative Return Fund (see Note 8). These
carryforwards expire as follows: $585,250 in 1998, $186,468 in 1999,
$29,229 in 2001 and $1,022,780 in 2002. At December 31, 1995, Cash
Management had net capital loss carryforwards aggregating 22
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
$1,091. These carryforwards expire as follows: $107 in 1997, $312 in 1999,
$252 in 2000, $17 in 2001, $192 in 2002 and $211 in 2003. To the extent
future capital gains are offset by capital loss carryforwards, such gains
will generally not be distributed to shareholders.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- For Equity, Flex, MultiFlex,
Income, Real Estate and International Value dividends and distributions are
recorded by these investment portfolios on the ex-dividend date. All of
Cash Management's net investment income is distributed to shareholders by
dividends declared daily and paid monthly.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Services, Inc.
("ISI"), serves as each investment portfolio's investment adviser. As
compensation for its services to each investment portfolio, ISI receives an
investment advisory fee which is accrued daily and paid monthly. These fees
are based on the annual rate of 0.75% of the respective average daily net
assets of Equity, Flex and Income (this was changed on October 1, 1995 to
0.40% for Income), 0.90% of the respective average net assets of Real Estate,
0.50% of the respective average daily net assets of Cash Management and 1.00%
of the average daily net assets of MultiFlex and International Value. ISI has
entered into a sub-advisory agreement with INVESCO Capital Management, Inc.
("ICM"), with respect to Equity, Flex, Income, Cash Management and
International Value whereby investment decisions for these investment
portfolios are made by ICM. Fees for these sub-advisory services are paid by
ISI to ICM at an annual rate of 0.20% of the average daily net assets of
Equity and Flex and 0.10% of the average daily net assets of Income and Cash
Management and for the International Value, 0.35% of average net assets on the
first $50 million of assets, 0.30% of average net assets on the next $50
million of assets, and 0.25% of average net assets on assets in excess of $100
million. ISI has also entered into a sub-advisory agreement with INVESCO
Management & Research, Inc. ("IMR"), with respect to MultiFlex, whereby
investment decisions for this investment portfolio are made by IMR. Fees for
these sub-advisory services are paid by ISI to IMR at annual rates based on
daily average net assets: for MultiFlex Fund, 0.35% on the first $500 million
of assets and 0.25% of assets in excess of $500 million. In addition, ISI has
entered into a sub-advisory agreement with INVESCO Realty Advisors, Inc.
("IRA"), with respect to Real Estate, whereby investment decisions for this
investment portfolio are made by IRA. Fees for this sub-advisory service are
paid by ISI to IRA based on annual rates equal to 0.35% of average net assets
of Real Estate on the first $100 million of assets and 0.25% of average net
assets on assets in excess of $100 million.
ISI is the principal underwriter for the Fund. All of the portfolios (except
Cash Management) have entered into distribution plans (the "Plans") with ISI
in accordance with Rule 12b-1 of the Act. Under the Plans, ISI receives annual
fees of 1.00% of average daily net assets for Equity, Flex, MultiFlex, Income
( this was changed on October 1, 1995 to 0.60% for Income), Real Estate and
International. ISI advised the Fund that for the year ended December 31, 1995,
it received approximately $3,391, $15,716, $2,167, $901, $2,454, $79 and $7 in
contingent deferred sales charges ("CDSC") from certain shareholder redemp-
tions of Equity, Flex, Income, Cash Management, MultiFlex, International Value
and Real Estate Funds, respectively. Certain officers or directors of the Fund
are officers or directors of ISI.
Each investment portfolio has also entered into an operating services agree-
ment with ISI. Under the respective operating services agreements, each in-
vestment portfolio pays ISI an annual fee of 0.50% of daily average net assets
for providing or arranging to provide accounting, legal (except litigation),
dividend disbursing, transfer agent, registrar, custodial, shareholder report-
ing, sub-accounting and recordkeeping services and functions. These agreements
provide that ISI will pay all fees and expenses associated with these and
other functions, including, but not limited to, registration fees, shareholder
meeting fees, and proxy statement and shareholder report expenses. The com-
bined effect of the advisory agreements, distribution plans and operating
services agreements of each investment portfolio is to place a cap or ceiling
on the total expenses of each investment portfolio, other than brokerage com-
missions, interest, taxes, litigation, directors' fees and expenses, and other
extraordinary expenses.
23
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
If in any calendar year, the average daily net assets of Equity or Flex are
less than $500 million, expenses shall not exceed 2.25%; on the next $500 mil-
lion of average daily net assets, expenses shall not exceed 2.15%; on the next
$1 billion of daily average net assets, expenses shall not exceed 2.10%; and
on all average daily net assets over $2 billion, expenses shall not exceed
2.05%. If in any calendar year, the average daily net assets of MultiFlex or
International Value are less than $100 million, expenses shall not exceed
2.50%; on the next $400 million of average daily net assets, expenses shall
not exceed 2.40%; on the next $500 million of average daily net assets, ex-
penses shall not exceed 2.35%; on the next $1 billion of average daily net as-
sets, expenses shall not exceed 2.30%; and on all daily average net assets
over $2 billion, expenses shall not exceed 2.25%. If in any calendar year, the
average daily net assets of Income are less than $250 million, expenses shall
not exceed 2.25%; on the next $250 million of average daily net assets, ex-
penses shall not exceed 2.15%; on the next $250 million of average daily net
assets, expenses shall not exceed 2.10%; and on all daily average net assets
over $750 million, expenses shall not exceed 2.05%. In any calendar year the
expenses of Cash Management may not exceed 1.00% of average daily net assets.
If in any calendar year, the average net assets of the Real Estate are less
than $100 million, expenses shall not exceed 2.40%; on the next $400 million
of net assets, expenses shall not exceed 2.35%; on the next $500 million of
net assets, expenses shall not exceed 2.30%; and on all assets over $1 bil-
lion, expenses shall not exceed 2.25%.
At December 31, 1995, 29.39% of the outstanding capital shares of Cash Man-
agement were owned by affiliated parties.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the year ended
December 31, 1995, the aggregate cost of purchases and proceeds from sales of
U.S. Government Securities were:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------
<S> <C> <C>
Flex.................................................... $ 7,666,406 $ 8,459,922
MultiFlex............................................... 22,578,828 16,485,460
Income.................................................. 6,716,938 5,329,641
</TABLE>
The aggregate cost of purchases and proceeds from sales of all other securi-
ties (excluding all short-term securities) were:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------
<S> <C> <C>
Flex.................................................... $79,161,286 $ 5,242,741
Equity.................................................. 27,754,428 15,681,642
MultiFlex............................................... 75,325,389 51,189,746
International Value..................................... 8,434,232 68,451
Real Estate............................................. 4,987,519 158,419
Income.................................................. 1,002,105 1,046,630
</TABLE>
NOTE 4 -- UNREALIZED APPRECIATION AND DEPRECIATION. At December 31, 1995, the
gross unrealized appreciation and depreciation of securities for federal
income tax purposes was as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
---------------------------------------
<S> <C> <C> <C>
Flex..................................... $88,070,372 $(6,394,347) $81,676,025
Equity................................... 30,675,339 (1,404,559) 29,270,780
MultiFlex................................ 25,434,536 (2,368,601) 23,065,935
International Value...................... 569,822 (51,274) 518,548
Real Estate.............................. 279,176 (58,212) 220,964
Income................................... 2,781,320 (84,722) 2,696,598
</TABLE>
24
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 5 -- CAPITAL SHARES. The authorized capital stock of the Fund consists of
10,070,000,000 shares of common stock having a par value of $0.001 per share.
Of such shares, 10 million have been allocated to each of the Equity,
MultiFlex, Income, Real Estate and International Value, 20 million to Flex and
10 billion to Cash Management.
NOTE 6 -- FOREIGN SECURITIES. Certain Funds invest in American Depositary
Receipts of foreign companies. Underlying the American Depositary Receipts are
investments in foreign securities. Foreign securities investments involve
special risks and considerations not typically associated with those of U.S.
origin. These risks include, but are not limited to re-evaluation of
currencies, adverse political, social and economic developments and less
reliable information about issuers. Moreover, securities of many foreign
companies and markets may be less liquid and their prices more volatile than
those of U. S. companies and markets.
NOTE 7 -- TRANSACTIONS WITH AFFILIATES. The Fund has adopted an unfunded
noncontributory defined benefit pension plan covering all independent
directors of the Fund who will have served as an independent director for at
least five years at the time of retirement. Benefits under this plan are based
on an annual rate equal to 25% of the retainer fee at the time of retirement.
Pension expenses for Flex, Equity, MultiFlex and Income Funds for the year
ended December 31, 1995 of $87,602, $27,371, $35,299 and $10,367 respectively,
are included in Directors' Fees and Expenses in the Statement of Operations.
Unfunded accrued pension costs for Flex, Equity, MultiFlex and Income Funds of
$7,929, $2,453, $3,611 and $786 respectively, and pension liability of
$15,125, $4,679, $6,889 and $1,500 respectively, are included in other assets
and liabilities in the Statement of Assets and Liabilities. There were no
pension expenses for International Value, Real Estate and Cash Management
Funds.
NOTE 8 -- In accordance with the terms of an agreement approved by Relative
Return Bond Fund shareholders on December 15, 1995, the Income Fund issued
64,390 of its capital shares in exchange for the net assets of Relative Return
Fund of $3,327,189, including $147,389 of unrealized appreciation; combined
net assets were $31,571,199 as of the merger date. Shareholders of Relative
Return Bond Fund received .788 shares of Income Fund for each share of
Relative Return Bond Fund. The transaction, which was a tax-free exchange, has
been accounted for by combining the assets and liabilities of each Fund at
their value on the date of the merger. The identified cost of investments were
similarly combined.
25
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
FLEX FUND
YEAR ENDED DECEMBER 31,
-------------------------------------------------
1995 1994 1993 1992 1991
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................ $ 50.50 $ 54.16 $ 51.04 $ 49.35 $ 42.26
-------------------------------------------------
INVESTMENT OPERATIONS
Net investment income........ 1.29 1.26 1.10 1.39 1.47
Net gain (loss) on securities
(both realized and
unrealized)................. 12.38 (0.91) 4.22 2.37 8.90
-------------------------------------------------
Total from investment opera-
tions....................... 13.67 0.35 5.32 3.76 10.37
-------------------------------------------------
DISTRIBUTIONS
Dividends (from net invest-
ment income)................ (1.29) (1.25) (1.09) (1.35) (1.49)
Distributions (from capital
gains)...................... (0.24) (2.76) (1.11) (0.72) (1.79)
-------------------------------------------------
Total distributions.......... (1.53) (4.01) (2.20) (2.07) (3.28)
-------------------------------------------------
Net asset value, end of year. $ 62.64 $ 50.50 $ 54.16 $ 51.04 $ 49.35
=================================================
TOTAL RETURN/1/.............. 27.30% 0.64% 10.48% 7.72% 24.80%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)...................... $399,162 $243,848 $274,349 $165,727 $104,204
Ratio of expenses to average
net assets*................. 2.28% 2.25% 2.25% 2.17% 2.21%
Ratio of net investment in-
come to average net assets*. 2.28% 2.32% 2.10% 2.81% 3.12%
Portfolio turnover rate...... 5% 36% 27% 15% 24%
</TABLE>
/1/ A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of the
Fund aggregating $18,993 for 1993. If such expenses had not been absorbed,
the ratio of expenses to average net assets would have been 2.26%, and the
ratio of net investment income to average net assets would have been 2.09%.
26
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
EQUITY FUND
YEAR ENDED DECEMBER 31,
---------------------------------------------
1995 1994 1993 1992 1991
---------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................ $ 55.83 $ 59.61 $ 63.27 $ 63.38 $ 54.70
---------------------------------------------
INVESTMENT OPERATIONS
Net investment income............ 0.41 0.36 0.41 0.60 0.66
Net gain on securities (both re-
alized and unrealized).......... 16.44 1.26 5.40 2.44 17.63
---------------------------------------------
Total from investment operations. 16.85 1.62 5.81 3.04 18.29
---------------------------------------------
DISTRIBUTIONS
Dividends (from net investment
income)......................... (0.41) (0.36) (0.41) (0.57) (0.69)
Distributions (from capital
gains).......................... (1.86) (5.04) (9.06) (2.58) (8.92)
---------------------------------------------
Total distributions.............. (2.27) (5.40) (9.47) (3.15) (9.61)
---------------------------------------------
Net asset value, end of year..... $ 70.41 $ 55.83 $ 59.61 $ 63.27 $ 63.38
=============================================
TOTAL RETURN/1/.................. 30.28% 2.69% 9.16% 4.84% 33.59%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's).......................... $113,573 $77,929 $86,659 $91,146 $81,732
Ratio of expenses to average net
assets*......................... 2.28% 2.25% 2.25% 2.18% 2.22%
Ratio of net investment income to
average net assets*............. 0.64% 0.61% 0.62% 0.90% 1.04%
Portfolio turnover rate.......... 17% 21% 47% 41% 47%
</TABLE>
/1/ A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of
the Fund aggregating $3,227 for 1993. If such expenses had not been absorbed,
the ratio of expenses to average net assets for 1993 would have been 2.25%
and the ratio of net investment income to average net assets for 1993 would
have been 0.62% .
See notes to financial statements.
27
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
MULTIFLEX FUND
YEAR ENDED FOR THE PERIOD
DECEMBER 31, NOV. 17, 1993/1/
1995 1994 TO DEC. 31, 1993
---------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of
year.......................... $ 39.13 $ 40.16 $ 40.00
---------------------------------------
INVESTMENT OPERATIONS
Net investment income.......... 0.64 0.62 0.02
Net gain (loss) on securities
(both realized and
unrealized)................... 7.75 (1.03) 0.16
---------------------------------------
Total from investment opera-
tions......................... 8.39 (0.41) 0.18
---------------------------------------
DISTRIBUTIONS
Dividends (from net investment
income)....................... (0.64) (0.62) (0.02)
Distributions (from capital
gains)........................ (0.17) 0.00 0.00
---------------------------------------
Total distributions............ (0.81) (0.62) (0.02)
---------------------------------------
Net asset value, end of year... $ 46.71 $ 39.13 $ 40.16
=======================================
TOTAL RETURN................... 21.58% (1.02%) 0.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)........................ $174,592 $120,220 $12,241
Ratio of expenses to average
net assets.................... 2.50% 2.49% 2.50%*
Ratio of net investment income
to average net assets......... 1.53% 2.01% 1.09%*
Portfolio turnover rate........ 50% 81% 0.53%
</TABLE>
/1/ Commencement of operations
* Annualized
See notes to financial statements.
28
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
INTERNATIONAL VALUE AND REAL
ESTATE FUNDS
INTERNATIONAL REAL ESTATE
VALUE FUND FUND
-------------------------------------
FOR THE PERIOD FOR THE PERIOD
MAY 1, 1995/1/ TO MAY 1, 1995 TO
DEC. 31, 1995 DEC. 31, 1995
-------------------------------------
<S> <C> <C>
Net asset value, beginning of year............ $40.00 $40.00
-------------------------------------
INVESTMENT OPERATIONS
Net investment income......................... 0.00 0.64
Net gain on securities (both realized and
unrealized).................................. 4.51 3.00
-------------------------------------
Total from investment operations.............. 4.51 3.64
-------------------------------------
DISTRIBUTIONS
Dividends (from net investment income)........ 0.00 (0.62)
-------------------------------------
Total distributions........................... 0.00 (0.62)
-------------------------------------
Net asset value, end of year.................. 44.51 43.02
=====================================
TOTAL RETURN.................................. 11.28% 9.12%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in 000's)............ $9,467 $5,565
Ratio of expenses to average net assts........ 2.50%* 2.40%*
Ratio of net investment income to average net
assets....................................... 0.03%* 4.68%*
Portfolio turnover rate....................... 2% 7%
</TABLE>
/1/Commencement of operations
*Annualized
See notes to financial statements.
29
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
INCOME FUND
YEAR ENDED DECEMBER 31,
---------------------------------------------
1995 1994 1993 1992 1991
---------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................ $ 45.33 $ 48.60 $ 47.41 $ 47.77 $ 45.42
---------------------------------------------
INVESTMENT OPERATIONS
Net investment income............ 2.44 2.40 2.28 2.57 3.03
Net gain (loss) on securities
(both realized and unrealized).. 6.91 (3.27) 1.20 (0.37) 2.43
---------------------------------------------
Total from investment operations. 9.35 (0.87) 3.48 2.20 5.46
---------------------------------------------
DISTRIBUTIONS
Dividends (from net investment
income)......................... (2.46) (2.40) (2.29) (2.56) (3.11)
---------------------------------------------
Total distributions.............. (2.46) (2.40) (2.29) (2.56) (3.11)
---------------------------------------------
Net asset value, end of year..... $ 52.22 $ 45.33 $ 48.60 $ 47.41 $ 47.77
=============================================
TOTAL RETURN/1/.................. 21.12% (1.80)% 7.39% 4.74% 12.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's).......................... $31,986 $25,467 $42,872 $47,096 $39,104
Ratio of expenses to average net
assets*......................... 2.19% 2.25% 2.25% 2.25% 2.29%
Ratio of net investment income to
average net assets*............. 4.94% 5.09% 4.56% 5.48% 6.48%
Portfolio turnover rate.......... 24% 59% 92% 16% 37%
</TABLE>
/1/ A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of
the Fund aggregating $17,720 and $17,632 for 1995 and 1993, respectively. If
such expenses had not been absorbed, the ratio of expenses to average net
assets would have been 2.25% and 2.29% for 1995 and 1993, respectively, and
the ratio of net investment income to average net assets would have been
4.88% and 4.52% for 1995 and 1993, respectively.
See notes to financial statements.
30
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
YEAR ENDED DECEMBER 31,
--------------------------------------------
1995 1994 1993 1992 1991
--------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------
INVESTMENT OPERATIONS
Net investment income............. 0.05 0.03 0.02 0.03 0.05
--------------------------------------------
DISTRIBUTIONS
Dividends (from net investment in-
come)............................ (0.05) (0.03) (0.02) (0.03) (0.05)
--------------------------------------------
Net asset value, end of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================
TOTAL RETURN/1/................... 5.04% 3.30% 2.20% 3.00% 5.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)........................... $20,439 $15,212 $13,827 $20,431 $17,730
Ratio of expenses to average net
assets*.......................... 1.00% 1.00% 0.95% 0.73% 1.00%
Ratio of net investment income to
average net assets*.............. 4.91% 3.23% 2.17% 2.94% 5.04%
</TABLE>
/1/ A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of
the Fund aggregating $15,099 and $38,925 for 1993 and 1992, respectively. If
such expenses had not been absorbed the ratio of expenses to average net
assets would have been 1.03% and 0.92% for 1993 and 1992, respectively, and
the ratio of net investment income to average net assets would have been
2.09% and 2.75% for 1993 and 1992, respectively.
See notes to financial statements.
31
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
INVESCO Advisor Funds, Inc.
(formerly known as The EBI Funds, Inc.)
In our opinion, the accompanying statement of assets and liabilities, includ-
ing the schedules of investment securities, and the related statements of op-
erations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of INVESCO Advisor
Flex Fund, INVESCO Advisor Equity Fund, INVESCO Advisor MultiFlex Fund,
INVESCO Advisor International Value Fund, INVESCO Advisor Real Estate Fund,
INVESCO Advisor Income Fund, and INVESCO Advisor Cash Management Fund (consti-
tuting The INVESCO Advisor Funds, Inc., hereafter referred to as the "Fund")
at December 31, 1995, the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the respec-
tive periods presented, in conformity with generally accepted accounting prin-
ciples. These financial statements and financial highlights (hereafter re-
ferred to as "financial statements") are the responsibility of the Fund's man-
agement; our responsibility is to express an opinion of these financial state-
ments based on our audits. We conducted our audits of these financial state-
ments in accordance with generally accepted auditing standards 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 dis-
closures in the financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall fi-
nancial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
Denver, Colorado
January 19, 1996
32
<PAGE>
INVESCO SERVICES, INC.
Investment Advisor
Manager
Distributor
INVESCO CAPITAL MANAGEMENT, INC.
Sub-Advisor:
INVESCO Advisor Equity Fund
INVESCO Advisor Income Fund
INVESCO Advisor Flex Fund
INVESCO Advisor International Value Fund
INVESCO Advisor Cash Management Fund
INVESCO MANAGEMENT & RESEARCH, INC.
Sub-Advisor:
INVESCO Advisor Multiflex Fund
INVESCO REALTY ADVISORS, INC.
Sub-Advisor:
INVESCO Advisor Real Estate Fund
FUND/PLAN SERVICES, INC.
Transfer Agent and Administrator
UNITED MISSOURI BANK OF KANSAS CITY, N.A.
Custodian
PRICE WATERHOUSE
Independent Accountants
[INVESCO LOGO]
Invesco Services, Inc.
1355 Peachtree Street, N.E.
Atlanta, Georgia 30309
(404) 892-0666
(800) 972-9030
This information must be preceded or
accompanied by a current prospectus
ANNUAL REPORT
-------------------------------------
December 31, 1995
[INVESCO ADVISOR FUNDS LOGO]
